Agenda 02/28/2023 Item #16C 6 (Resolution - To remove uncollectable accounts receivables in the amount of $5,328.83 from the financial records of the Collier County Oyblic Utilityes Department)16.C.6
02/28/2023
EXECUTIVE SUMMARY
Recommendation to approve and authorize the removal of uncollectable accounts receivables in the amount
of $5,328.83 from the financial records of the Collier County Public Utilities Department in accordance with
Resolution No. 2006-252, make a determination this adjustment is in the best interest of the County, and
authorize the Chairman to execute the attached Resolution.
OBJECTIVE: To reflect proper accounts receivable balances in the County's financial records by writing off
uncollectable debt in the amount of $5,328.83.
CONSIDERATION: A review of Water Sewer accounts receivable for likelihood of collection is required by
Resolution 2006-252 during each fiscal year. Accounts receivable management includes the periodic recognition of
bad debt expense for accounts that have been identified as uncollectible. Amounts recommended for removal from
the accounts receivable include water and sewer uncollected customer account balances and miscellaneous billing
accounts.
Each month a review of the accounts receivable aging report is completed to determine if there are uncollectible
balances. These balances are then added to the overall write off report that is reviewed again annually by Utility
Billing Customer Service staff and the Division Director.
Diligent efforts for collections start with two automated phone calls and two emails or text messages, based on
customer elected preference. After this a certified mail notice is sent to the customer when the account is 30 days
past due then again at 60 days past due. Additionally, monthly account statements continue to be sent for the
delinquent accounts.
• The customer water sewer account balance write-offs in the below table under "Exceeds Statute of
Limitations" had an implied lien placed against the property which transfers if the ownership changes.
These types of balances receive implied liens because they cannot be turned over to debt collection
services.
• If the miscellaneous billings are not paid at this point, the account for water sewer damages are turned over
to the County contracted debt collection services with RTR Financial Services.
The implied liens are statutorily allowed for four (4) years then are no longer enforceable. While anything
exceeding four (4) years is written off due to exceeding statute of limitations, balances less than four (4) years
remain on the account balance and continue to receive monthly statements of being past due in an attempt to
collect.
The annual review of all accounts receivable balances as of September 30, 2022 was completed as part of the Fiscal
2022 year-end reports. Collection efforts for unpaid balances included in this recommendation have been
exhausted (Exhibit 1). A summary by write off category for each receivable balance is depicted in the table below:
Category
Age
Fund
Amount
Exceeds Statute of Limitations
4 Years
408 CCWSD Operating
$4,469.08
Misc. Billing
4 Years
408 CCWSD Operating
$859.75
• Water Sewer Accounts Receivable: The balance of $4,469.08 represents seven (7) utility customer account
balances that are more than four years old, exceeding the statute of limitations for collection. The
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02/28/2023
remaining current outstanding balance constitutes as an automatic lien on the property in case the property
sells or transfers.
Water Sewer Accounts Receivable: The balance of $859.75 represents two (2) invoices for damages
caused to the water/sewer infrastructure system. These transactions have been in accounts receivables with
collection efforts for at least four (4) years and are now exceeding the statute of limitations for collection.
The records to be removed total $5,328.83, a 17% decrease from last year's amount of $6,389.61. The Collier
County Water Sewer District operations generated approximately $176,000,000.00 million in revenue in fiscal year
2022; the records to be removed constitute less than 0.003% of annual gross revenues generated through operations.
FISCAL IMPACT: An allowance for uncollectable accounts will be charged to remove the total amount of
$5,328.83 from the Collier County Public Utilities Department within Fund 408.
GROWTH MANAGEMENT IMPACT: None
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is in conformance with
Resolution No. 2006-252, and as such is approved as to form and legality. This item requires majority vote for
approval. -JAK
RECOMMENDATION: That the Board of County Commissioners, Ex-officio the Governing Board of the Collier
County Water -Sewer District, approve and authorize the removal of uncollectable accounts receivables in the
amount of $5,328.83 from the financial records of the Collier County Public Utilities Department in accordance
with Resolution No. 2006-252, make a determination this adjustment is in the best interest of the County, and
authorize the Chairman to execute the attached Resolution.
Prepared by: Annia M. Machin, Utility Billing & Customer Service Manager, Financial Operations Division
ATTACHMENT(S)
1. UBCS Write Offs FY 2023 (PDF)
2. Resolution 2006-252 Managing Misc Receivables WRITE OFFS (PDF)
Resolution (rev2) - Water Sewer Uncollectable accounts - JAK signed 02.22.2023 (PDF)
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16.C.6
02/28/2023
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.C.6
Doc ID: 24302
Item Summary: *** This Item continued from the January 10, 2023, BCC Meeting. *** Recommendation to
approve and authorize the removal of uncollectable accounts receivables in the amount of $5,328.83 from the
financial records of the Collier County Public Utilities Department in accordance with Resolution No. 2006-252,
make a determination this adjustment is in the best interest of the County, and authorize the Chairman to execute
the attached Resolution.
Meeting Date: 02/28/2023
Prepared by:
Title: Operations Analyst — Public Utilities Operations Support
Name: Heather Sweet
01/10/2023 11:05 AM
Submitted by:
Title: Manager - Operations Support - PUD — Public Utilities Operations Support
Name: AmiaMarie Curry
01/10/2023 11:05 AM
Approved By:
Review:
Public Utilities Operations Support Annia Machin Additional Reviewer
Capital Project Planning, Impact Fees, and Program Management Gilbert Moncivaiz
Public Utilities Department Drew Cody Level 1 Division Reviewer
Public Utilities Department George Yilmaz Level 2 Division Administrator Review
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review
Corporate Compliance and Continuous Improvement Megan Gaillard
Corporate Compliance and Continuous Improvement Megan Gaillard
County Attorney's Office
Office of Management and Budget
Office of Management and Budget
County Manager's Office
Board of County Commissioners
Jeffrey A. Klatzkow Additional Reviewer
Laura Zautcke Additional Reviewer
Christopher Johnson Additional Reviewer
Dan Rodriguez Level 4 County Manager Review
Geoffrey Willig Meeting Pending
Completed 01/23/2023 2:03 PM
Additional Reviewer Completed
01/23/2023 2:34 PM
Completed 01/24/2023 8:03 PM
Completed 01/30/2023 1:57 PM
Completed 01/30/2023 2:04 PM
Completed 01/30/2023 2:40 PM
Additional Reviewer Completed
02/03/2023 4:26 PM
Additional Reviewer Completed
02/22/2023 9:52 AM
Completed 02/03/2023 4:35 PM
Completed 02/14/2023 12:08 PM
Completed 02/22/2023 9:59 AM
Completed 02/22/2023 11:08 AM
02/28/2023 9:00 AM
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Write Offs
Balance
to be
Account #
Customer Name
Period Covered
written off
Due Date
Account Type
Reason for Write Off
Comments
03000399001
Korolvshun, Russell
12/15/2017 - 09/06/2018
$
690.91 11/24/2022
Water/Sewer
Exceeds Statute of Limitations
08101371203
Thompson, Joshua
06/17/2018 - 09/05/2018
$
366.83 11/23/2022
Water/Sewer
Exceeds Statute of Limitations
03300560401
Watt, Kima
10/05/2017 - 09/06/2018
$
691.01 9/25/2019
Water/Sewer
Exceeds Statute of Limitations
07200028701
Boileau Familv Investment Group
10/30/2017 - 09/28/2018
$
695.39 11/24/2022
Water/Sewer
Exceeds Statute of Limitations
0
08101360801
Stilton, Steven
10/04/2017 - 09/05/2018
$
451.08 11/23/2022
Water/Sewer
Exceeds Statute of Limitations
00300074800
Rabe, Marvin & Rebecca
03/02/2018 - 09/26/2018
$
1,354.56 12/19/2022
Water/Sewer
Exceeds Statute of Limitations
d
05400912100
Applegate, Audry
08/23/2018 - 09/25/2018
219.30 12/12/2022
Water/Sewer
Exceeds Statute of Limitations
d
Total Write Off
$
4,469.08
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16.C.6.a
Invoke #
Customer Name
Invoice Date
Balance to be
pue Date Auoounl Type
Beason for Write Off
wriHen off
0090013804
Calatlantic Homes
3/8/2017 $
317.42
4/7/2017 Miscellaneous Billing
Exceeds Statute of
03.10.2017 the Invoice was mailed.
Limitations
04.30.2111 mailed the frst Dun ning N once.
05.12.2017 mailed the second Dunning notice. Made phone calls to the local office and was unable to reach
anyone of aath,rity
05.09.2018 Emailed Brad.
0
11.11.2018 Sent the Invoice to Collection Agency
0090015661
Vast 8 Associates Inc.
5/4/2018 $
542.33
6/3/2018 Miscellaneous Billing
Exceeds Statute of
05.10.2018 Mailed Invoice.
Limitations
06.21.20181, Dunning mailed
a
07.1].2018 2nd Dunning mailed
CD
08.06.2'18 The 3rd Dunning Notice mailed
08.22.2018 Mariana at Vasi that she spoke to Helen in the beginning of August 2018 and she haven't received the
picturesthat she requested.
to
11.19.2011 Mariana was advised that we do not have pictures for them and the invoice stands and will be sent to
%
collections. per Mariana she will contact the field supervisor.
Z
02.07.2019 Invoice was sent to collection agency.
('
Total Write Off
$
859.75
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16.C.6.b
RESOLUTION NO. 2006- 2 5 2
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA,
APPROVING PROCEDURES FOR MANAGING
MISCELLANIOUS RECEIVABLES
WHEREAS, it is the responsibility of each department to manage the collection
of miscellaneous accounts receivable.
WHEREAS, the Independent Auditor's Management Letter prepared by KPMG
for the fiscal year ending September 30, 2004 revealed the following system wide
deficiency, "the Board of County Commissioners does not follow-up on delinquent
miscellaneous receivables. "
WHEREAS, on February 8, 2006, County Manager James V. Mudd informed the
Inspector General of the State of Florida, Ms. Annette C. Kittrell, that a procedure to
monitor delinquency and collectabilty of miscellaneous receivables, including a write-off
procedure, will be implemented by September 30, 2006.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, THAT:
The Board of County Commissioners hereby approves these Procedures for
Managing Miscellaneous Receivables.
THIS RESOLUTION is adopted after motion, second, and majority vote
favoring adoption this,2& m day of r� 6pr 2006.
ATTEST BOARD OF COUNTY COMMISSIONERS
DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA
BYBy. ---•� �. �.-
Q%u Cler Frank Halas, Chairman
as to ha i r son i
s 10n t�rr
Approved as tb i and legal sufficiency:
— 1A, — LAIJ
Will iam ountford, Assis t County Attorney
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DRAFT
Procedures for Managing Miscellaneous Receivables
It is the responsibility of each department to manage the collection of their accounts
receivable. The following shall be collection procedures for managing miscellaneous
receivables. This procedure excludes those areas covered elsewhere by resolution,
ordinance, and/or by separate policy.
A. A past -due notice will be sent 30-days after due date.
B. 30-days after the first past due notice is sent (60-days past original due date) a
second past due notice will be sent.
C. After a 10-day grace period following the second past due notice (70-days past
original due date), the account will be sent to the county's contracted collection
agency.
D. When, at any stage during the billing and collection procedure, a notice is
returned because the Postal Service can not effectuate delivery, staff shall make
reasonable efforts to ascertain the correct mailing address.
E. Nothing contained in this section shall preclude reasonable telephone or other
appropriate contact for billing and collection purposes, in accordance with
applicable laws.
F. A reasonable and customary payment plan may be made available to all service
recipients or reasonable parties. Should the service recipient or reasonable party
at any point fail to meet the terms or conditions of the payment plan, the unpaid
balance shall be administered in accordance with this section.
G. Prior to the end of each fiscal year, county department directors shall review all
past due accounts and approve the discontinuance of collection efforts for those
receivables that appear to be uncollectible, and report such accounts to the Board
of County Commissioners.
H. The Board may, after reviewing these past due accounts and after finding that
diligent efforts at collection have proved unsuccessful, remove these past due
accounts from active accounts receivable in accordance with generally accepted
accounting procedures and pursuant to law by Resolution.
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16.C.6.c
RESOLUTION NO. 2023 -
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO THE GOVERNING
BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT, TO
REMOVE UNCOLLECTABLE ACCOUNTS RECEIVABLES FROM
ACTIVE ACCOUNTS RECEIVABLE, FINDING THAT DILIGENT
EFFORTS HAVE BEEN MADE TO RECAPTURE THE FUNDS AND THE
ACCOUNTS ARE NOT COLLECTABLE.
WHEREAS, pursuant to Resolution No. 2006-252, the Board of County Commissioners
has established a procedure to remove past due accounts from active accounts receivable by
Resolution where diligent efforts at collection have proved unsuccessful; and
WHEREAS, this adjustment is proper and in the best interest of the county because the
accounts were deemed uncollectible after multiple attempts; and
WHEREAS, the Financial Operations Division has identified delinquent accounts within
Fund 408 (Water/Sewer) comprising a total amount of $5,328.83, which are uncollectable
because of expiration of the statute of limitations, and determination of abandoned accounts for
miscellaneous billing.
WHEREAS, the Utility Billing Customer Service staff have made diligent efforts to
collect these past due amounts, including two automated phone calls and two emails or text
messages, based on customer elected preference. After this a certified mail notice is sent to the
customer when the account is 30 days past due then again at 60 days past due. The customer
account balances below write-offs, there was an implied lien placed against the property which
transfers if the ownership changes. If the miscellaneous billings are not paid at this point, the
account for water sewer damages are turned over to the county contracted debt collection
services with RTR Financial Services.
WHEREAS, the County has diligently attempted, without success, to collect on these
past -due accounts totaling $5,328.83.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
l . The Board finds that Collier County has made diligent efforts to collect the total debt
amount by researching the balances and reviewing any applicable records for further
information:
Collier County Water -Sewer District Operating Fund (408) $5,328.83
[22-REV-01249/1757675/1 ]
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16.C.6.c
2. Despite diligent efforts, it is not able to collect the debts but is able to determine that
these accounts are uncollectable.
The Board finds that the total amount of $5,328.83 may be removed from active
accounts receivable in accordance with generally accepted accounting procedures and
pursuant to law.
THIS RESOLUTION ADOPTED this 28th day of February, 2023, after motion, second and
majority vote.
ATTEST: BOARD OF COUNTY COMMISSIONERS OF
CRYSTAL K. KINZEL, CLERK COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE COLLIER
COUNTY WATER -SEWER DISTRICT
an
Jeffrey A.
[22-REV-01249/1757675/1 ]
, Deputy Clerk
and legality:
'County Attorney
Rick LoCastro, Chair
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