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Home My WebLink AboutReg 2024-10-07 Item 4F - Resolution - Cancellation of Past Due Accounts ReceivableCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 10/07/24 SW ITEM INFORMATION ITEM NO. 4.F. STAFF SPONSOR: TONY CULLERTON ORIGINAL AGENDA DATE: 10/07/24 AGENDA ITEM TITLE Resolution Ordering the Cancellation of Uncollectible Accounts Receivable CATEGORY ❑ Discussion Mtg Date ❑ Motion Mtg Date ® Resolution Mtg Date 10/07/24 ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Altg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY There are certain accounts receivable that have been deemed uncollectible and need to be removed from the Accounts Receivable ledger. The Council is being asked to consider and approve the resolution ordering their cancellation. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 09/23/24 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONSOR/ADMIN. Finance Department COMMITTEE Unanimous Approval; Forward to Regular Meeting Consent Agenda COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/7 MTG. DATE ATTACHMENTS 10/07/24 Informational Memorandum dated 09/23/24 Resolution in final form Attachment A - 2024 AR Write -Offs Attachment B - Historical Write -Offs 9/23 Finance & Governance Committee Minutes (distributed separately) 73 74 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Tony Cullerton, Interim Finance Director BY: Cindy Wilkins, Fiscal Specialist CC: Mayor McLeod DATE: September 23, 2024 SUBJECT: Cancellation of Uncollectable Accounts Receivable ISSUE Each year a resolution comes before the Council for the cancellation of uncollectable accounts receivable. For 2024, these items include: • Community Development invoice • Fire False Alarms • Police False Alarms • Public Works invoices GRAND TOTAL: $6,000.00 7,000.00 18,300.00 11,675.11 $42,975.11 BACKGROUND The process for tracking accounts receivable is quite thorough. The steps below are followed prior to preparation of the attached write-off resolution. • The Finance Department sends an invoice to a customer, payable in 30 days. • If payment is not received within 30 days, the receivable is forwarded to our collection agency, Armada, and placed into pre -collect status. • Next, Armada sends a Delinquency Notice to debtor notifying them of the past -due status of the receivable and asks them to contact the City to make payment. Payments can still be made directly to the City while in pre -collect status. • Once 30 days in pre -collect status have passed, the receivable then rolls over to active collections. At the onset of active collections, a letter is sent to the debtor notifying them of the change in status from pre -collect to active collections and advising that payments must now be made through the collection agency. • When in active collections status, the debtor is contacted both by phone and letter. A search is made for assets with which the debt could be satisfied. Once the debt has been in active collections for 45 days, it is then reported to the national credit bureaus. • The last process in the collections cycle is the pursuit of legal action. This includes attaching checking accounts, garnishments, and lawsuits. • It should be noted that while a debt may be written off our books, it is still active in Armada's collection process. DISCUSSION The proposed amount of the 2024 Cancellation of Accounts Receivable is $42,975.11. This is an annual housekeeping item. 75 INFORMATIONAL MEMO Page 2 FINANCIAL IMPACT The financial impact of cancelling $42,975.11 will be to reduce our accounts receivable balance by this amount. Please note that while we are writing off the accounts receivable for accounting purposes, the accounts are still being actively worked on for collection purposes except for those accounts where a responsible party cannot be identified. Accounts covered by bankruptcy law cannot be pursued. RECOMMENDATION The Council is being asked to approve the annual resolution authorizing the cancellation of Accounts Receivable and to forward this item to the Regular Meeting Consent Agenda of October 7, 2024. ATTACHMENTS Proposed Draft Resolution Attachment A — 2024 AR Write -Offs Attachment B — Historical Write -Offs 76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ORDE - ING THE CANCELLATION OF PAST DU ACCOUNTS RECEIVABLES WHEREAS, certain receivables and checks fie been . -med uncollectable after efforts both the City have been unsuccessful; a WHEREAS, the City's collection agency,'a, will continue to pursue these receivables when practical; NOW, THEREFORE, THE CITY O 1 QF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESO S A' LO ' S: Miscellaneous Accou 1 able. e total of $42,975.11 (per Attachment A) is deemed uncollectable. PASSED BY TH • IL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting ATTEST/AUTHENTICA Andy Youn, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Attachment A: 2024 AR Write -Offs Mohamed Abdi, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 1 of 1 77 78 Attachment A - 2024 Write -Offs * = Referred to Collections Customer # Customer Name Invoice Date Invoice Description GL Account Total C00848 ADAN, MAHAMUD C00672 HAMPTON HEIGHTS LLLP C00673 AIRFIELD BUSINESS CENTER C00674 SOUTHCENTER PLAZA C00676 PARKWAY SUPERCENTER C00676 PARKWAY SUPERCENTER C00400 EVERGREEN HOBBIES INC C00672 HAMPTON HEIGHTS LLLP C00636 CONFLUENCE APARTMENTS C00474 nc mach* C00730 MUSEUM OF FLIGHT FOUNDATION C00731 PEAKS AT TUKWILA C00636 CONFLUENCE APARTMENTS C00635 Greater Life Church and Ministries C00740 SABEY DATA CENTERS-INTERGATE.SEATTLE C00730 MUSEUM OF FLIGHT FOUNDATION C00676 PARKWAY SUPERCENTER C00674 SOUTHCENTER PLAZA C00688 TUKWILA VILLAGE #1 C00586 C00316 C00408 C00457 C00640 C00481 C00642 C00644 C01198 C00645 C00650 C00655 C00378 C00658 C01640 V015500 C00650 C00482 C00256 C00642 C00473 FIDELITY TITLE AZ TRADING INC GIVING TREE LEARNING CENTER INC RUDY CUBE LLC SEA CORP OLD NAVY LLC BF FOODS TUKWILA LLC QDOBA RESTAURANT CORPORATION RECREATIONAL EQUIPMENT, INC. ROSS DRESS FOR LESS INC DHINBILL NUR ALI TREK RETAIL CORPORATION VERA WHOLE HEALTH INC WW GRAINGER INC UPS SUPPLY CHAIN SOLUTIONS, INC. GLOBAL TO LOCAL HEALTH INITIATIVE DHINBILL NUR ALI NEW CINGULAR WIRELESS PCS LLC SEATTLE CHAR LLC BF FOODS TUKWILA LLC PETSMART INC #377 09/28/2022 CD000012 RELOCATION ASSIST 12471 TIB CD008300-541008 04/12/2022 FD000063 04/12/2022 FD000064 04/12/2022 FD000066 04/12/2022 FD000073 05/09/2022 FD000078 05/09/2022 FD000082 05/09/2022 FD000083 05/09/2022 FD000088 05/09/2022 FD000090 05/09/2022 FD000091 05/09/2022 FD000092 05/10/2022 FD000100 05/10/2022 FD000104 05/04/2022 FD000105 05/04/2022 FD000106 05/04/2022 FD000107 05/04/2022 FD000108 05/04/2022 FD000111 03/16/2022 PD000219 03/16/2022 PD000220 03/16/2022 PD000222 03/16/2022 PD000224 03/16/2022 PD000232 03/16/2022 PD000236 03/16/2022 PD000238 03/16/2022 PD000239 03/16/2022 PD000240 03/16/2022 PD000242 03/16/2022 PD000246 03/16/2022 PD000253 03/16/2022 PD000255 03/16/2022 PD000258 04/26/2022 PD000263 04/26/2022 PD000266 04/26/2022 PD000268 04/26/2022 PD000272 04/26/2022 PD000273 04/26/2022 PD000277 04/26/2022 PD000279 22-0041 1/2/22 FIRE FA 22-0101 1/5/222 FIRE FA 22-0147 1/6/2022 FIRE FA 22-0269 1/13/2022 FIRE FA 2/1/22 FIRE FALSE ALARM 2/8/22 FIRE FALSE ALARM 2/8/22 FIRE FALSE ALARM 2/13/22 FIRE FALSE ALARM 2/14/22 FIRE FALSE ALARM 2/15/22 FIRE FALSE ALARM 2/15/22 FIRE FALSE ALARM 3/18/22 FIRE FALSE ALARM 3/28/22 FIRE FALSE ALARM 3/17/22 FIRE FALSE ALARM 3/21/22 FIRE FALSE ALARM 3/20/22 FIRE FALSE ALARM 3/16/22 FIRE FALSE ALARM 3/11/22 FIRE FALSE ALARM 12/15/2021 PD FA 12/18/21 PD FA 12/27/2021 PD FA 12/3/2021 PD FA 12/15/2021 PD FA 12/4/2021 PD FA 12/12/2021 PD FA 12/16/2021 PD FA 12/16/2021 PD FA 12/27/2022 PD FA 12 31/2021 PD FA 12/3/2021 PD FA 12/27/2021 PD FA 12/28/2021 PD FA #4 1/1/22 PD FA #2 1/30/2022 PD FA #9 1/2/2022 PD FA #7 1/9/2022 PD FA #5 1/22/22 PD FA #4 1/13/2022 PD FA #4 1/20/22 PD FA FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 FD011100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 6,000.00 * 6,000.00 250.00 250.00 250.00 750.00 250.00 250.00 250.00 750.00 250.00 250.00 250.00 500.00 750.00 500.00 250.00 250.00 250.00 750.00 7,000.00 250.00 * 250.00 * 250.00 * 250.00 * 250.00 * 250.00 * 500.00 * 250.00 * 500.00 * 250.00 * 500.00 * 250.00 * 250.00 * 50.00 * 250.00 * 250.00 * 250.00 * 250.00 * 500.00 * 250.00 * 750.00 * Page 1 Attachment A - 2024 Write -Offs * = Referred to Collections Customer # Customer Name Invoice Date Invoice Description GL Account Total C00702 ALLY PLUMBING INC C00718 EAN HOLDINGS INC C00719 SIMPLY THAI USA INC C00640 SEA CORP C00688 TUKWILA VILLAGE #1 C00313 APARTMENT OUTFITTERS OF VIRGIN C00749 LANE, PAMELA V011858 SOUND C00399 ENVISTA FORENSICS LLC V015500 GLOBAL TO LOCAL HEALTH INITIATIVE C00650 DHINBILL NUR ALI C00406 FOSTER CREEK APARTMENTS LLC C00482 NEW CINGULAR WIRELESS PCS LLC C00256 SEATTLE CHAR LLC C00473 PETSMART INC #377 C00315 ASHLEY FURNITURE PARTNERS LLC C01132 VIDEO ONLY, INC. C00636 CONFLUENCE APARTMENTS C00253 SKYGROUP INVESTMENTS LLC C00384 TUKWILA VILLAGE PHASE 2 OPPORT C00726 CLAIM JUMPER ACQUISITION COMPANY LLC C00812 SUMA PERFORMANCE LLC V011858 SOUND C00702 ALLY PLUMBING INC C00572 COWLITZ TRIBAL HEALTH C00378 VERA WHOLE HEALTH INC C00814 YGS WEST LLC C00658 WW GRAINGER INC C00348 CORPORATION OF THE CATHOLIC CHURCH C00815 WORKSITE LABS INC C00816 BENLA WATER HEATERS INC C00571 ATWORK! COMMERCIAL ENTERPRISES LLC C01555 SEFNCO COMMUNICATIONS, INC. CO2062 BRETT MCDONOUGH CO2063 BLUE PEARL MANAGEMENT LLC C00846 DESIMONE TRUST OXBOW 04/26/2022 PD000293 05/09/2022 PD000345 05/09/2022 PD000348 05/09/2022 PD000352 05/09/2022 PD000355 05/09/2022 PD000358 07/19/2022 PD000380 07/19/2022 PD000383 07/19/2022 PD000385 07/19/2022 PD000389 07/19/2022 PD000391 07/19/2022 PD000395 07/19/2022 PD000397 07/19/2022 PD000400 07/19/2022 PD000404 07/19/2022 PD000405 07/19/2022 PD000409 07/19/2022 PD000414 07/19/2022 PD000415 07/26/2022 PD000418 07/26/2022 PD000422 07/26/2022 PD000427 07/19/2022 PD000429 07/19/2022 PD000430 07/19/2022 PD000431 07/19/2022 PD000432 07/19/2022 PD000433 07/19/2022 PD000434 07/19/2022 PD000435 07/19/2022 PD000436 07/19/2022 PD000437 12/20/2023 07/06/2022 10/16/2023 10/16/2023 09/21/2022 #2 1/9/22 PD FA #2 2/16/22 PD FA #2 2/23/22 PD FA #3 2/7/222 PD FA #5 2/11/22 PD FA #6 2/6/22 PD FA #2 4/9 PD FA #4 4/14 PD FA #5 3/24 PD FA #3 4/8 PD FA #10 3/8 PD FA #3-4 PD FA #8 4/29 PD FA #7 & 8 PD FA #7 -9 PD FA PD FA #4 3/30 PD FA #3-4 PD FA #2-3 PD FA #7 3/6 PD FA #2 3/9 PD FA #2 & 3PD FA #10 3/6 PD FA #4-5 PD FA #9-10 PD FA #4 4/17 PD FA #4 4/10 PD FA #4-5 PD FA #6 4/17 PD FA #2 3/26 PD FA #2 4/12 PD FA PW000223 Use of temp 2.5" Hydrant Meter PW000061 Adj Deposit/Rev WO 2204112 FN000283 Adj Deposit/Revenue D21-05154 FN000285 Adj Deposit/Revenue D22-0053 PW000087 Adj Deposit/Rev WO 22240104 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PW401800-343401 PW401800-343402 PW401801-379002 PW401801-379002 PW401801-379002 500.00 * 250.00 * 500.00 * 500.00 * 500.00 * 250.00 * 250.00 * 250.00 * 250.00 * 250.00 * 250.00 * 500.00 * 250.00 * 500.00 * 750.00 * 1,000.00 * 250.00 * 500.00 * 500.00 * 250.00 * 250.00 * 500.00 * 250.00 * 500.00 * 500.00 * 250.00 * 250.00 * 250.00 * 250.00 * 250.00 * 250.00 * 18,300.00 10,890.65 * 423.28 * 159.11 * 159.11 * 42.96 * 11,675.11 Grand Total: $ 42,975.11 Page 2 Attachment B - Historical Write -Offs Resolution 1843 2014 $ 36,240.62 Resolution 1865 2015 $ 27,887.91 Resolution 1893 2016 $ 47,680.46 Resolution 1916 2017 $ 9,005.25 Resolution 1948 2018 $ 12,832.35 Resolution 1969 2019 $ 53,109.56 Resolution 2001 2020 $ 17,285.74 Resolution 2031 2021 $ 5,492.03 Resolution 2051 2022 $ 34,324.45 Resolution 2078 2023 $ 70,835.55 81