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BACKGROUND Until adopted by the City Council on October 18, 2011, the City had not had a Write-off Policy for Uncollectible Accounts Receivable. Consequently, the uncollectible accounts receivable reported as assets in the City's financial statements accumulated over the twenty years from 1987 to 2007. The City's policy specifies criteria for designating an account as uncollectible, states that accounts receivable should generally be written-off during the fiscal year in which an account is determined to be uncollectible, and requires City Council approval for write-off of amounts in excess of $10,000. Subsequent collection of an account previously written-off will be treated as new revenue in the appropriate fund. DISCUSSION Staff has identified seven accounts receivable, each in excess of $10,000, which satisfy at least one of the criteria for designating an account uncollectible. A summary of each uncollectible account is provided below. Westbrook Kottinger Ranch $11,871.23 Due: November 1992 Fund 355 From December 1990 through October 1992, the City of Pleasanton incurred expenses in the Water Expansion Fund for the Kottinger Ranch Pump Station project. The account receivable was established based on the expectation that this expense would be reimbursed by Westbrook Kottinger Ranch, the developer of the Kottinger Ranch property. Although the City's records show that a portion of the expenses were reimbursed and the receivable reduced, the remaining $11,871 portion of the expenses has not been reimbursed. In accordance with the City's policy, this account has been designated uncollectible as the applicable period for commencement of a recovery action has ended (November 1996). Pinn Brothers $21,460.00 Due: January 1996 Fund 355 The receivable is a payment for water connection fees due in January 1996. No payment against this receivable was recorded; instead, the City's records include a notation that this account is a "building permit error." This account has been designated uncollectible as the applicable period for commencement of a recovery action has ended (June 2000). Signature Properties $37,370.00 Due: June 1997 Fund 160 In September 1996, the City of Pleasanton paid the Alameda County Clerk $37,370 as part of a condemnation of property related to the Vineyard Avenue "S-Curve" Sewer Extension. The account receivable was established based on the expectation that this expense would be reimbursed by Signature Properties, the developer of the Ruby Hill property. However, these costs were later put in the Vineyard Specific Plan Fees and charged to all the property owners in that area that benefitted from these improvements. This receivable must be removed from the City's accounting records (June 2001). Alameda County Fire $41,666.00 Due: June 1997 Fund 001 The receivable is a portion of the 1996-1997 payment from the County to reimburse the City for providing fire protection services to property within the County. The City's records indicate that the City was engaged in a negotiation with the County in Page 2 of 3