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THE CITY OF 2 — - e" CITY COUNCIL AGENDA REPORT pLE ASANTON, November 5, 2019 City Manager TITLE: APPROVE WRITE-OFF OF $51,667 UNCOLLECTABLE ACCOUNT RECEIVABLE FROM THE TRI-VALLEY HOUSING OPPORTUNITY CENTER SUMMARY On April 22, 2013, the Tri-Valley Housing Opportunity Center (TVHOC) and the Tri- Valley Cities of Dublin, Livermore, and Pleasanton entered into an agreement to provide TVHOC a loan in the amount of $155,001 to meet TVHOC's outstanding operating debt. Pleasanton's share of the loan was $51 ,667. As stipulated in the agreement, in lieu of cash repayments, TVHOC for a period of three years would provide affordable housing services, including Housing Counseling Services, Homebuyer Training, and Foreclosure Prevention. However, despite efforts to reorganize in 2014, TVHOC eventually began the process of dissolution. With TVHOC out of business, TVHOC was unable to provide the agreed-upon in-kind services, and the City is also unable to collect the loan from TVHOC. On October 18, 2011, the City Council adopted a Policy for Write-Off of Uncollectible Accounts Receivable. The policy requires that the write-off of any individual uncollectible account receivable that exceeds $10,000 must be approved by the City Council. RECOMMENDATION Staff recommends the City Council approve the write-off of the account receivable identified herein effective June 30, 2019. FINANCIAL STATEMENT The recommended write-off will result in the reduction of City assets of $51,667 in the Lower Income Housing Fund (Fund 122). It has been noted that the write-off of an uncollectible accounts receivable from the City's accounting records does not constitute forgiveness of the debt or a gift of public funds. The loan was structured to be repaid with the services provided by TVHOC for a period of three years rather than with cash repayments.