LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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WRITE-OFF OF GOVERNMENTAL UNCOLLECTIBLE ACCOUNTS RECEIVABLE
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RECOMMENDATION:
recommendation
That City Council approve the write-off of $16,501.94 in unpaid lease option fees due from Silver Hills Development ("Silver Hills") and $2,500.00 in unpaid Right of Way Leases with Will Call Sports and Grille and Old Hickory Bar retroactive to September 30, 2021.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
On October 8, 2021 City Council authorized the Mayor to assign the Option Agreement for the Community Maritime Park Parcels 4 & 5 between the City of Pensacola and Studer Properties, LLP to Silver Hills Development, Inc. Under this agreement Silver Hills was billed $3,480.00 per month for CMP Parcel 4 & 5 options for the periods October 9, 2020 through March 31, 2021. Silver Hills made one payment and has an outstanding balance of $16,501.94.
The Planning Division has two right of way customers with outstanding balances, Will Call Sports and Grille and Old Hickory Bar. Will Call Sports Grille has outstanding invoices totaling $1,000 for ROW leases. Old Hickory Bar has outstanding invoices totaling $1,500 for ROW leases.
Staff does not believe the City will be able to collect these past due amounts and is requesting approval from City Council to write them off.
The City’s Financial Planning and Administration Policy provides that all non-utility accounts receivable in amounts in excess of $1,000, and in which a lien has not been filed be submitted to City Council for approval before being written off. The write-off of this uncollectible account is for accounting purposes only and will not impact the fiscal year 2021 revenues or expenditures of the City of Pensacola.
PRIOR ACTION:
October 8, 2021 - City Council authorized the Mayor to assign the Option Agreement for the Community Maritime Park Parcels 4 & 5 between the City of Pensacola and Studer Properties, LLP to Silver Hills Development, Inc.
FUNDING:
N/A
FINANCIAL IMPACT:
Current past due fees total $19,001.94. The write-off of these receivables will not have an impact in fiscal year 2021 operating revenues of the City of Pensacola.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
10/29/2021
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Write-off of uncollectible governmental accounts receivables report
PRESENTATION: No end