HomeMy WebLinkAboutN-403 - Accounts Receivable/City Claims for DamagesCITY OF PASCO
ADMINISTRATIVE ORDERS
Administrative Order No, 403
Finance
Subject: Accounts Receivable / City Claims for Damages
Initial Effective Date:
September 7, 2012
Revised
Approved
I. PURPOSE:
This Administrative Order is intended to foster a common understanding and consistent
use of internal procedures designed to assure timely collection and proper accounting of
all monies due the city as payment for damage to city property or equipment caused by
others.
II. DEPARTMENTS AFFECTED:
All.
III. POLICY:
Any claims for monies owed to the city by another party, as a result of loss or damage
to city property or otherwise, shall be identified by the operating department
responsible for such property, and reported to the Administrative & Community
Services (A&CS) Director in the manner prescribed by this order.
2. Once properly informed, the A&CS Director will coordinate with the Finance
Division which shall be responsible for timely billing, collection and accounting of
such amounts owing to the city; provided, however, the respective operating
department shall be responsible for submitting complete documentation and
providing coordination with legal and follow-up if necessary.
In the event that damage to city property/equipment is sustained as a result of action
that is under review by a court, the A&CS Director shall provide information to the
Prosecutor to confirm and substantiate the city's claim.
4. This policy is not intended to cover claims occurring as a result of contractual
relationships (for example, construction contracts where the contractor is required to
repair damage, etc.).
IV. PROCEDURES:
1. Documentation: as soon as possible after becoming aware of a claim, departments
shall compile information necessary to support the city's claim for damages,
including as applicable: accident reports, incident reports, repair estimates,
photographs, other party insurance policy information, etc., and forward to the A&CS
Director.
2. Claim: the A&CS Director shall: prepare a letter outlining the claim with demand for
payment (see sample letter Exhibit A, attached) and submit the claim information and
demand letter(s), attached to "Request for Billing" form (Administrative Order 402)
to the accounts receivable clerk in the Finance Division. The accounts receivable
clerk will prepare a City of Pasco invoice and mail it with the claim.
Claim/Insurance Cc: When an insurance company is known, the A&CS Director will
prepare a notice of claim to the insurance company, with copy to insured (see Exhibit
B, attached). The A&CS Director will coordinate with the operating department and
the insurance company to reach a settlement and advise Accounts Receivable of
monies due.
4. Tracking: accounts receivable shall notify the A&CS Director in the event that
payment is not received within 90 days. The director shall consult with the city
attorney for cases requiring legal services.
Approved:
Gary Crutchfield, City Managers Date
AO No. 403 "Accounts Receivables/City Claims for Damages"
Page 2
Claims for Loss or Damage to City Property
Per Administrative Order No. 403 "Any claims for monies owed to the city by another party, as a
result of loss or damage to city property or otherwise, shall be identified by the operating
department responsible for such property. Department shall compile information necessary to
support the city's claim and return to A&CS Director to coordinate timely billing, collection and
accounting of monies owed to the city."
Date Damage Occurred:
Responsible Party Name:
Responsible Party Address:
Responsible Party Phone:
Address where Damage Occurred:
Damage Description:
Damage Amount:
Is Damage the Result of Action under Review by a Court? (If yes, which Court?)
Check box and attach the documentation to support the claim:
❑ Pasco Incident Report
❑ Pasco or WSP Accident Report
❑ Photos of Damage
❑ Responsible Party Insurance Info
❑ Repair/Replacement Estimate
(on City or Vendor Letterhead)
❑ Other
Department is responsible for submitting complete documentation and providing
coordination with legal and follow-up if necessary.
Division Manager or Dept. Director
Contact Phone Number
City Claims for Damages 9/1/15
DATE
Name
Address
City, State Zip
RE: Claim for Damage
Dear
EXHIBIT A
Administrative Order #403
The City of Pasco hereby files its claim for damages as a result of (incident) on (date) in which
the City sustained damages to its (property). The City believes you are liable for the damage.
Please see the attached (estimate, etc.) which outlines the City's cost in repairing/replacing its
property.
The City hereby demands payment in the amount of $ (list amount) within (# of days) days as its
fair compensation for the damage. Please remit payment per the attached invoice. If you have
any questions in this matter, please contact (list name and phone number of director/manager).
Sincerely,
Name
Title
DATE
Name (insurance company)
Address
City, State Zip
RE: Notice of Claim
Your Insured:
Policy No.: _
Dear
EXHIBIT B
Administrative Order #403
Notice is hereby given of the claim of the City of Pasco for damages to its (property) as a result
of (incident) on (date). The City believes your insured is responsible for the damage.
Please contact the undersigned for additional information in resolving this case.
Sincerely,
Name
Title
cc: Insured