Agenda 03/25/2014 Item #16G2 3/25/2014 16.G.2.
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners, in its capacity as the Collier
County Airport Authority, authorize staff to accept a payment plan that was proposed during
discussions with Salazar Machine & Steel,Inc.
OBJECTIVE: To obtain the Board of County Commissioners approval for staff to accept the
payment plan offered by Salazar Machine & Steel, Inc. This plan requests a waiver of interest
charges associated with past due rent.
CONSIDERATIONS: On February 25. 2014 under item 11B the Board directed staff to work
with the tenants of the Airport Authority to achieve compliance with all lease requirements.
During staff's review of Airport leases it was noted that Salazar Machine & Steel. Inc. was
$51,149.00 (four months total) behind in payments on the two sub-leases that it has with the
Immokalee Regional Airport. Based on an analysis of account activity, staff determined that
$8.530.21 in late fees and $8,633.28 (2% per month on the past due rent and the late fees) in
interest were owed as well. It was also determined that of the total $17,163.49 in late fees and
interest charges, only$7,000 had been recorded in the financial records.
In mid-February 2014, staff began communications with the tenant in attempt to collect rent
arrearages and bring them current on their rent payments as soon as possible. Toward that end,
staff has agreed to support and bring to the Board the following payment plan:
• By 2/28/14, tenant to pay all four months of delinquent rent totaling $51,149.00 and a
portion of the associated four months of late fees, $2,333.33.
• By 3/31/14,tenant to pay the remaining late fee balance of$6,810.21.
• Upon payment of the remaining late fee balance. staff has agreed to support and bring to
the Board a proposal to waive the interest charges associated with this account. As of
2/28/14 the interest balance was $8,633.28.
o Staff believes that an interest charge waiver is reasonable in light of the fact that
the Airport had not computed and included these charges on the tenant's invoices.
Failure to invoice the tenant does not obligate the Airport to waive the interest
charges, but is doing so in order to incentivize prompt payment of the significant
owed sum.
The tenant further agrees to pay all subsequent rent payments on-time in accordance with the
respective sub-lease agreements.
On February 28, 2014, the tenant did pay all back rent due and owing. Staff will correct the
tenant's account to reflect the correct amount of late fees and interest still due. Then, if the
Board approves, the Airport will write off the interest charges only (which will continue to
accrue in March) if the late fees are paid in full by March 31, 2014.
FISCAL IMPACT: There is no Fiscal Impact associated with this Executive Summary.
GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with
Executive Summary.
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3/25/2014 16.G.2.
LEGAL CONSIDERATIONS: The County Attorney's Office has reviewed this item and
approved it as to form and legality. Majority support is required for approval. -KN
RECOMMENDATION: That the Board of County Commissioners, in its capacity as the Collier
County Airport Authority, authorizes staff to the accept Salazar Machine & Steel, Inc payment plan
and to further authorize staff to write-off the interest charges once the tenant fulfills their obligations
under this plan and authorize the Chairman to execute updated lease &payment plan.
Prepared by: Gene Shue, Operations Director, Growth Management Division
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3/25/2014 16.G.2.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.G.16.G.2.
Item Summary: Recommendation that the Board of County Commissioners, in its capacity
as the Collier County Airport Authority, authorize staff to accept a payment plan that was
proposed during discussions with Salazar Machine & Steel, Inc.
Meeting Date: 3/25/2014
Prepared By
Name:LynchDiane
Title: Supervisor-Operations. Road Maintenance
3/4/2014 5:18:21 PM
Approved By
Name:LynchDiane
Title: Supervisor-Operations.Road Maintenance
Date: 3/5/2014 9:54:38 AM
Name: ShueGene
Title:Director-Operations Support,Transportation Administration
Date: 3/6/2014 9:03:04 AM
Name: LynchDiane
Title: Supervisor-Operations, Road Maintenance
Date: 3/7/2014 8:47:45 AM
Name: KearnsAllison
Title:Manager Financial& Operational Support,Transportation Administration
Date: 3/7/2014 4:02:02 PM
Name:NoellKevin
Title:Assistant County Attorney, CAO General Services
Date: 3/7/2014 4:23:02 PM
Name: MarcellaJeanne
Title:Executive Secretary, Transportation Planning
Date: 3/11/2014 1:02:22 PM
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3/25/2014 16.G.2.
Name: IsacksonMark
Title:Director-Corp Financial and Mngmt Svs, Office of Management&Budget
Date:3/13/2014 11:32:04 AM
Name: KlatzkowJeff
Title:County Attorney,
Date: 3/14/2014 10:17:08 AM
Name: OchsLeo
Title:County Manager, County Managers Office
Date:3/14/2014 4:32:54 PM
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