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BACKGROUND The City Council adopted the Policy for Write-off of Uncollectible Accounts Receivable on October 18, 2011. 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 one account receivable in excess of $10,000, which satisfies at least one of the criteria for designating an account uncollectible. A summary of the uncollectible account is provided below. Victor Sosa, Highland Tree Care $14,100 Due: May 2008 Fund 570 A civil penalty was assessed on Victor Sosa for the unlawful removal of a heritage tree, a violation of Pleasanton Municipal Code Chapter 17.16. The City made several attempts over a twenty-two (22) month period to collect the civil penalty without success. The account was subsequently forwarded to Collection Bureau of America (CBA) on January 28, 2010 for collection action. Since that time, CBA has been unsuccessful in its collection attempts. In accordance with the City's write-off policy, this account has been designated uncollectible as the appropriate collections procedures were followed and the account remains unpaid after five years. In addition to the write-off of the above account receivable, the City Council authorized the Director of Finance to write-off accounts with a balance of up to $5,000 and the City Manager to write-off accounts with a balance of up to $10,000. There were approximately sixty-one (61) additional receivables written-off by the City Manager and the Director of Finance that totaled $58,995.66. The majority of these receivables are for damage claims owed by individuals for damages to City property, monthly alarm services that were discontinued, miscellaneous reimbursements owed to the City including health care services provided to retired employees that were to be reimbursed by those retirees. In all cases, the Director of Finance will write-off these receivables; however, in the future, services will be denied to these people until they first pay these back charges. Submitted by: Approved ---Cribt &kr/ Emily Wagner Nelson Fialho Director of Finance City Manager Page 2 of 2