HomeMy WebLinkAboutResolution No. 12-2017 - Write Off of Uncollectable AccountsRESOLUTION NO. 12-2017
A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA BOARD OF PUBLIC
WORKS FOR THE WRITE-OFF OF UNCOLLECTABLE ACCOUNTS
WHEREAS, the City of South Bend, through the Bureaus of Water Works, Solid Waste,
and Sewers billed various municipal services to customers; and
WHEREAS, the unsuccessfully collected accounts receivable is written off after all
attempt efforts are put forth to collect and recover the charges, complying with the Indiana State
Board of Accounts for Bad Debts and Uncollectible Accounts;
WHEREAS, the City of South Bend by and through its Board of Public Works, desires to
write off various billed bad debt accounts.
NOW THEREFORE, BE IT RESOLVED by the Board of Public Works of the City of
South Bend, that a direct write-off of $526,158 for 2015 and $547,007 for 2016 for a total of
$1,073,165 be approved.
ADOPTED this 28th Day of March, 2017.
BOARD OF PUBLIC WORKS
2 V—J � �
Gary A. Gilot, President
James A. Mueller, Member
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Elizabeth A. Maradik, Member
CILI
—Li da M. Martin, Clerk
Suzanna M. Fritzberg, Member
Therese J.DDo' au, e��mber
South Bend Water Works
General Procedures for Aging Receivable
Active Delinquency Actions
Customer cycle billing groups are due and payable in twenty days. The following action
types are pursued in the attempt to collect payment:
First Action: A reminder phone call is made notifying the customer that the account
is past due. The account is aged approximately 14 days.
(34 days from date of invoice)
Second Action: A delinquency notice is sent to the customer indicating the past due
balance must be paid to avoid disruption in service. The account is aged
approximately 21 days.
(41 days from date of invoice)
Third Action: A second phone call is deployed informing the customer of the final
notice prior to disconnection due to non-payment of the utility bill. The account is
aged approximately 28 day.
(48 days from date of invoice)
Fourth Action: A shut off work order is generated for water service due to non-
payment of the past due amount. The account is aged approximately 35 days.
(55 days from date of invoice)
Final Delinquency Actions
An account is determined to be uncollectable after all active delinquency actions are
deemed unsuccessful. A final continuation of collection efforts are made to resolve the
outstanding debt.
Collection Department Pursues Debt: A letter is generated informing the customer
of the outstanding receivable and our intent of further collection action if payment
is not received.
Agency Pursues Debt: Outstanding receivable placements are given to an outside
agency for further collection action.
Sewer Lien Processing: Delinquent sewer charges are subject to lien attachment
after all collection attempts are fully exhausted.
Write Off Action
Accounts Receivable that is unsuccessfully collected after a period of 52 weeks is written
off. The write off process is performed on a monthly basis.
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BOARD OF PUBLIC WORKS
AGENDA ITEM REVIEW REQUEST FORM
Date March 22, 2017
Name Tony Sergio/Roxanne Lawson Department
Water Works
BPW Date March 28, 2017 Phone Extension 6148 / 5648
Legal Attorney Name Michael Schmidt
Controller ® Controller review is required for all Contracts $5,000.00 or more and
greater than one year in length per the City Purchasing Policy
Purchasing ❑
❑ Agreement ❑ Contract ❑ Proposal ❑ Addendum
❑ Professional Services ® Resolution
❑ Bid Opening ❑ Bid Award ❑ Req. to Advertise ❑ Title Sheet
❑ Quote Opening ❑ Quote Award
❑ Change Order No. ❑ C/O & PCA No. ❑ PCA
❑ Ease/Encroach. ❑ Traffic Control
I-1 Other:
Company or Vendor Name N/A
New Vendor ❑ Yes ❑ No ❑ If Yes, Approved by Purchasing
MBE/WBE Contractor ❑ MBE ❑ WBE
MBE/WBE Contractor Requested ❑ No ❑ Yes Name of Company
Project Name Uncollectible Utility Billed Accounts Receivable Write Offs
Project Number N/A
Funding Source N/A
Account No. Multiple accounts in Fund 610 ,620 ,640 ,641, and 655
Amount 2016 - $ 547,007 2015- $ 526,158
Terms of Contract N/A
Purpose/Description Reporting uncollectable accounts receivable write offs to comply
with the Indiana State Board of Accounts.
❑ Required Contractor's Certification Form Attached (Non -
Collusion. Non -Discrimination. Non -Debarment. E-Verifv. Iran. etc.)
Amount of ❑❑
Previous Amount
Current Percent of Chanl
New Amount
Total Percent of Change: %
>Dispersal After Approval
Copy Original
® ❑ Tony Sergio
❑ ® Roxanne Lawson
❑ 11