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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Department of Parks
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DATE:
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July 3, 2007
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BOARD MEETING DATE:
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July 24, 2007
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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David G. Holland, Director, Department of Parks
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SUBJECT:
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Request for Relief from Accountability for Collection of Delinquent Account Lease No. 5022 between Coyote Restaurant Corporation and the County of San Mateo
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RECOMMENDATION:
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Adopt a resolution making the finding that the likelihood of collection of delinquent account Lease No. 5022 between Coyote Restaurant Corporation and the County of San Mateo does not warrant the expense involved to collect and discharging the Department of Parks from accountability for collection of this account.
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government.
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Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.
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This resolution contributes to this goal by weighing the collection costs and staff resources needed to try to collect payment against the likelihood of successful collection.
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BACKGROUND:
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On February 27, 2007, the San Mateo County Board of Supervisors approved Resolution No. 068567, terminating the lease between Coyote Restaurant Corporation and the County of San Mateo, because of the abandonment of the property by the tenant. The tenant had not used the premises for the purposes specified in the lease since 1997 and had not paid rent since July 2006.
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DISCUSSION:
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This account is presented for consideration of abandonment as Coyote Restaurant Corporation maintains it has no assets from which to pay past due rent or pay damages to offset financial losses to the County, thus the likelihood of collection does not warrant the expense or use of staff resources that would be involved.
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The uncollected funds for this account total $5,600 ($800 monthly rent), which Coyote Restaurant Corporation discontinued paying for a seven-month period beginning August 2006 through February 2007, when the lease was terminated by Board action. The Department has not given this account to the County’s Revenue Services for collection as it fully expects that action by that Department to collect these unpaid funds would not be successful and would waste County resources.
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By signature above, we (Department of Parks) hereby verify, on information and belief, that the facts stated herein are true and correct.
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FISCAL IMPACT:
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With the abandonment of the property and the financial situation of the Coyote Restaurant Corporation, the tenant, there is little or no chance of recovery of the charges. Rental income from this lease has not been included in the projected revenue of the Parks Department for the upcoming fiscal year, thus the relief of accountability for this debt will have no impact upon the County’s FY 2007-08 Proposed Budget.
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