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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. Luis Carlos Torres $17,963.34 Due: May 2010 Fund 001 The above named individual was involved in a sole-vehicle traffic collision on February 12, 2010 on Foothill Road. A traffic pole was damaged and was subsequently replaced. Total damages amounted to $17,963.34. The individual was arrested for violation of Section 23152(a) CVC-DUI and at the time of the collision, was not covered by auto insurance. The City made several attempts to collect on the damages without success. In accordance with the City's write-off policy, this account has been designated uncollectible as the appropriate collections procedures were followed, the account remains unpaid, and the applicable period for commencement of a recovery action has ended (May 2014). 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 thirty (31) additional receivables written-off by the Director of Finance that totaled $4,975.16. The majority of these receivables are for damage claims owed by individuals for damages to City property and miscellaneous reimbursements owed to the City. 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: Approve by: Emily E. Wagner Nei on Fialho Director of Finance City Manager Page 2 of 2