COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Parks

DATE:

September 19, 2007

BOARD MEETING DATE:

October 16, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

David G. Holland, Director, Department of Parks

SUBJECT:

Request for Relief from Accountability for Collection of Delinquent Account Lease No. 5298 between John Miller, dba Advanced Surf Designs, and the County of San Mateo

 

RECOMMENDATION:

Adopt a resolution making the finding that the likelihood of collection of delinquent account Lease No. 5298 between John Miller, dba Advanced Surf Designs, Inc., 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.

 

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

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.

 

BACKGROUND:

Mr. Miller, dba Advanced Surf Design, executed Lease/Concession Agreement (No. 5298) with the County of San Mateo in October 2003 to operate a windsurfing office, rental and instruction concession at Coyote Point Park. The lease was for three (3) years with a monthly rental of $400 from April to October every year. In March 2005, the parties entered in to the First Lease Amendment , which increased the leased space to include storage space and modified the Lease Agreement to allow the sale of food and beverages thus increasing the monthly rent to $800 from April to October.

Since August 2006, Mr. Miller, dba Advanced Surf Designs, Inc., has not paid the monthly rent amount stipulated in Lease No. 5298 for the windsurfing concession at Coyote Point Recreation Area. On July 24, 2007, an “Agreement to Terminate Lease/Concession Agreement (No. 5298)” was executed between Mr. Miller, dba Advanced Surf Designs, Inc., and the County of San Mateo. Mr. Miller, dba Advanced Surf Designs, Inc., subsequently vacated the premises at Coyote Point Recreation Area.

On August 7, 2007, a lease agreement was executed between Boardsports School and the County of San Mateo to operate the windsurfing concession at Coyote Point Recreation Area for the balance of FY 2007-08.

 

DISCUSSION:

Mr. Miller, dba Advanced Surf Designs, Inc., discontinued paying his monthly rent from August 2006 through July 24, 2007 and the uncollected funds for this account during that period total $5,200 for monthly rent.

This account is presented for consideration of abandonment as John Miller, dba Advanced Surf Designs, Inc., maintains that he is unable to pay the past due lease amounts to the County.

The Department of Parks 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 and thus do not warrant the expense or the use of staff resources involved to pursue collection.

By signature above, we (Department of Parks) hereby verify, on information and belief, that the facts stated herein are true and correct.

 

FISCAL IMPACT:

This relief of accountability for this debt had no impact on the Department of Parks FY 2006-07 Budget because increased Revenues at Coyote Point Recreation Area offset the loss of these revenues in that fiscal year.

Further, this relief of accountability for this debt will have no impact on the Department of Parks FY 2007-08 Budget since payments by the new lessee will meet the budgeted revenue for this account in this fiscal year.