HomeMy WebLinkAboutCST 27-12 ? 3 ?cif,/ oo _ Report To
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PIT C-KERI v G Report Number: CST 27-12
Date: September 10, 2012
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Write-off of Fire Services Costs Associated with the Claremont General
Store Fire
Recommendation: .
1. That Report CST 27-12 of the Director, Corporate Services & Treasurer be
received; and,
2. That the outstanding amount receivable from Seongmin Park & Kyungjoo Sung
in the amount of $13,750.99 and accumulated interest of $2,853.18 be written off
in 2012; and
3. That the appropriate officials of the City of Pickering be authorized to take the
necessary actions to give effect hereto.
Executive Summary: Efforts by the Treasurer and the City Solicitor to recover the
City's costs have proven partially successful with the owner of the store agreeing to pay
$7,000 of the $20,750 owing for demolitions and fencing for the burned out general
• store in Claremont.
It is staff's opinion that the remaining balance and accumulated interest should be
written off. .
Financial Implications: Under the Council approved Financial Control Policy, any
write-off of an uncollectible amount greater than $10,000 requires the approval of
Council.
If Council approves the recommendations of this report, then the expense will be •
charged to account 2136 — Provision for Accounts Receivable Write-off. During the
course of finalizing the year end for 2011, a provision of $16,604 was made in case this
particular account receivable had to be written off. As a result, the proposed write-off
will have no impact on the City's financial position for the year 2012.
Report CST 27-12 September 10, 2012
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Subject: Write-off Fire Services Costs Associated with Page 2
the Claremont General Store Fire
Discussion: In 2009, Pickering's Fire Services were called to a fire at the
Claremont General Store. Being of wood construction and being very old, the building
was quickly engulfed in flames. Once the fire was extinguished, Fire Services deemed
the remaining structure unsafe and called in a contractor to tear it down and fence the
area so the public would not be in danger. The total cost for the demolition and fencing
was $20,750. According to the owner of the store, his insurance was not sufficient to
pay for the reconstruction of the store and these costs. Discussions have been
undertaken with the owner and the City Solicitor has negotiated with the owner's lawyer.
The end result is that the owner is able to pay only $7,000 towards the demolition costs.
The City looked at the possibility of including these costs on the tax roll but found them
to be ineligible. All efforts to recover more have been unsuccessful, therefore, it is
recommended that the balance of $13,750 plus accumulated interest of $2,853 be
written off in 2012.
This report and its recommendations have been reviewed with the City Solicitor who
concurs.
Attachments: None
Prepared /Approved / Endorsed By:
Gillis A. Paterson, CMA
Director, Corporate Services &Treasurer
Recommended for the consideration
of Pickering C' Counci
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i �/ i 2 2_ot2,
Tony Prevedel, P.Eng.
Chief Administrative Officer
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