To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Discharge from Accountability for Uncollected Public Works Accounts
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
AUTHORIZE the discharge from accountability for uncollected Public Works Land Development accounts totaling $273,689.48 which have been deemed uncollectible, as recommended by the Public Works Director.
FISCAL IMPACT:
The accounts to be discharged total $273,689.48 (100% Land Development fund).
BACKGROUND:
The Public Works Department has received confirmation that these accounts are not recoverable due to one or more of the following reasons: the accounts are being discharged in bankruptcy; the debtors are deceased; the company no longer exists; the statue of limitations for pursuing recovery of the debt has expired; the cost of recovery is excessive; and/or the debtor no longer resides in the state. Based on the stated facts, Public Works should write off these accounts as uncollectable.
Approval of the recommended action will allow Public Works to purge these records from the system thereby creating an accurate inventory of recoverable accounts, a more manageable case count for staff, and elimination of redundant research by the accounting staff.
CONSEQUENCE OF NEGATIVE ACTION:
The Public Works Department will continue to carry the uncollectable accounts, creating an overstatement of accounts receivable.