The Community and Neighbourhood Services Committee recommends the adoption of the following report (May 8, 1998) from the Commissioner of Community and Neighourhood Services:

Purpose:

To obtain authorization to write-off an uncollectible account.

Funding Sources, Financial Implications and Impact Statement:

The cost associated with this bad debt will be accommodated within the Division's operating budget. Based on current funding arrangements, the cost of uncollectible accounts is shared equally with the Province. A total of $12,322.97 in accommodation arrears is outstanding. There will be no further accumulation of arrears; resident is deceased.

Recommendations:

It is recommended that:

(1) authority be given to the Homes for the Aged Division to write-off the arrears accumulated on behalf of I.S. while she was a resident at Bendale Acres; and

(2) the appropriate City officials be authorized and directed to take necessary action to give effect thereto.

Background:

On December 8, 1993, I.S. was admitted to Bendale Acres Home for the Aged, where she resided until her death on August 22, 1997.

At the time of admission, her son, W.S., executed an admission agreement on behalf of the resident. Regular monthly payments were made until March 1994, at which time the account went into arrears. From March 1994 until May 1995, the Division forwarded letters and phone calls were made to the son requesting that the account be maintained in good standing. Payments made were sporadic, and on May 19, 1995, the account was referred to the Legal Department for collection purposes, as all efforts by the Division to satisfy the account had failed. At this time, the amount outstanding was $4,812.65. The Legal Department immediately forwarded a demand letter to W.S. but payment in full was not made. Unable to obtain W.S.'s home address, the Legal Department served a Statement of Claim on W.S. at his business address on November 7, 1996. Service of the Statement of Claim seemed to have the desired effect in that W.S. paid the Home $3,100.00 with a notation that "the extra amount on this cheque is to pay down the balance owing. Future cheques will have extra amounts to clear this matter up as quickly as possible." However, over time, payments became less frequent and arrears began to accumulate. On March 2, 1997, the Legal Department issued a second Statement of Claim but served this one on I.S., the resident. Arrears owing at that time were $10,414.78. It was hoped that this would induce some sense of moral obligation by W.S. Unfortunately, although payments were being made, the balance of arrears owing continued to grow. I.S. failed to issue a Statement of Defence to the Legal Department, and on August 22, 1997, I.S. died. The Legal Department was unable to locate an estate for I.S. and recommended that the account be written off.

Conclusion:

The account is uncollectible and authorization to write-off the outstanding balance is requested. The City Solicitor and the City Treasurer concur with the recommendation to write-off this outstanding debt.

Contact Name:

Sandra Pitters:

General Manager, Homes for the Aged Division

Tel: 392-8907/Fax: 392-4180

E-mail: sandra_pitters@metrodesk.metrotor.on.ca