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BACKGROUND The City's Policy for Write-Off of Uncollectible Accounts Receivable specifies criteria for designating an account as uncollectible and states that accounts receivable should generally be written off during the fiscal year in which the account is determined to be uncollectible and requires City Council approval for write-off amounts in excess of $10,000. DISCUSSION Staff has identified an account receivable in excess of $10,000 which satisfies at least one of the criteria for designating an account as uncollectible: TVHOC is no longer in business. The TVHOC was a 501(c)(3) non-profit housing resource center formed in 2005 through the active participation of the five Tri-Valley Cities (Danville, Dublin, Livermore, Pleasanton, and San Ramon) and interested business/resident concerns. TVHOC coordinated homebuyer programs including homebuyer education counseling, down payment assistance programs, lease purchase programs, and inclusionary housing programs through its main office located at 141 North Livermore Avenue in downtown Livermore and community outreach forums held at various locations in the Tri-Valley cities. The TVHOC had an annual operating budget of approximately $290,000 with 2.1 full-time employees, including an Executive Director and an eight member Board of Directors. As the overall financial environment beginning in 2008 worsened, TVHOC's revenue raising efforts and its ability to sell a portion of its real estate holdings located in downtown Livermore were significantly impacted. Additionally, TVHOC also owned an occupied/rented affordable living unit located on the second story of its office building and an adjacent vacant commercial building located at 147-149 North Livermore Avenue. At the time of property acquisition, it was expected that the commercial site would be sold and that proceeds would be used to help meet the cost of needed capital improvements to the office building and related debt. However, the commercial property has not sold due to the challenges facing the commercial real estate market. This situation created a financial pressure for the TVHOC which had outstanding debt that required immediate payment. Consequently, in late 2012, TVHOC requested financial assistance from all the Tri- Valley Cities to allow TVHOC to meet all of its financial obligations. On April 22, 2013, TVHOC and the Tri-Valley Cities of the City of Dublin, the City of Livermore, and the City of Pleasanton executed a loan agreement for a combined loan of$155,001 to TVHOC. Each Tri-Valley City agreed to provide a loan of$51,667 to TVHOC. On September 22, 2014, TVHOC and the Tri-Valley Cities entered into a Reorganization and Service Agreement which memorialized the terms of repayment for the $155,001 loan. Per the agreement, in lieu of cash payment for the $155,001 loan, the Tri-Valley Cities agreed to accept the services provided by TVHOC as payment. Page 2 of 3