Item 244/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Patricia Song
Dept:
City Manager Dept: Finance
Date: 6/9/2026
Subject: Approval of Writing Off Certain Delinquent Obligations Owed to the City as Uncollectible Debt. (Action Item)
OBJECTIVE
To request City Council approval to write off certain delinquent obligations owed to the City, totaling $164,535.70, as uncollectible debt for Fiscal Year 2025-26.
BACKGROUND
The City maintains a billing system to record and track amounts owed to the City (receivables). On occasion, obligors fail to remit payment and the receivables become delinquent. Resolution No. 9666 -20 authorizes the Finance Director to utilize all lawful and reasonable means to pursue prompt and full recovery of amounts owed to the City and establishes procedures for the write-off of uncollectible debt. Under the Resolution, delinquent receivables in excess of $10,000 may be written off as uncollectible upon approval by the City Council.
After reasonable and good faith collection efforts have been exhausted, a delinquent receivable may be deemed uncollectible if one or more of the following conditions exist:
• The debtor is deceased;
• The debtor cannot be identified;
• The debtor cannot be located;
• The debtor has no recoverable assets; or
• The statute of limitations for pursuing legal remedies has expired.
The write -off of uncollectible receivables is a standard financial management pract ice necessary to maintain accurate accounting records and financial reporting. The practice is also consistent with applicable accounting principles and auditing standards.
Item 244/2026
DISCUSSION
The following delinquent accounts with balances over $10,000 are co nsidered uncollectible for Fiscal Year 2025-26:
Account Name Amount Owed Description of Debt
1. Medrano, Vivian Mercedez $ 10,319.20 Subrogation – Traffic collision
2. Bragg, Mary Jane $ 11,177.20 Subrogation - Traffic collision
3. Bardere, Lessarae Charlotte $ 17,645.63 Subrogation - Traffic collision
4. Giang, Chan Tham $ 20,122.61 Subrogation – Felony/ Traffic collision
5. Ramos, Ceferino Ascencion $ 22,596.40 Subrogation - DUI
6. Cabrerasegura, Joshua Alfredo $ 23,497.98 Subrogation - Traffic collision
7. Miller, Austin Bo $ 24,009.40 Subrogation – DUI
8. Zavala, Christopher Yareb $ 35,167.28 Subrogation - Traffic collision
All eight uncollectible receivables resulted from the City’s subrogation proceedings involving DUI incidents and traffic collisions. These incidents required the use of various City resources, including personnel time and repairs to City property. Consistent with City policy, staff pursued cost recovery efforts for each case. The City utilizes a third -party administrator to assist with the administration and collection of subrogation claims.
Collection efforts for the above cases have been exhausted, and the delinquent receivables are more than six months old. Pursuant to Reso lution No. 9666-20, Article II, Collection of Delinquent Obligations Owing to the City, staff is requesting City Council approval to write off these delinquent receivables as uncollectible debt.
FINANCIAL IMPACT
The total amount requested to be written o ff in Fiscal Year 2025 -26 is $164,535.70. These receivables were previously recorded in the City’s accounting records as an Allowance for Doubtful Accounts, and the related revenue reductions were recognized at the time the receivables were deemed uncollectible for financial reporting purposes. Accordingly, approval of the proposed write-offs will not result in any additional financial impact to the City.
The related account records, including the write -offs, will continue to be maintained within the City’s billing system for recordkeeping and reference purposes.
RECOMMENDATION
It is recommended that the City Council:
Approve the write -off of the above eight delinquent accounts with a total amount of $164,535.70 as uncollectible debt in Fiscal Year 2025-26.