Explanation
BACKGROUND: This ordinance requests Columbus City Council to authorize the Director of Public Utilities to write off the debts owed to the Division of Power and Water for uncollectible electricity accounts, as follows:
ACCOUNT NO. NAME SERVICE LOCATION AMOUNT
140-23-20553-10 The Penn Traffic Co. 777 Neil Avenue $19,865.80
180-23-16241-01 Big Bear Store 2801 N. High Street 31,533.93
These charges were for electric service provided between April, 2003 and June, 2003. The Penn Traffic Company, the parent company for the Big Bear Stores, filed bankruptcy in May, 2003. The City has filed a Proof of Claim for the unpaid bills, but has received no money to date. The division has been advised by the City Attorney's Office that it may be years before the bankruptcy case is discharged. Therefore, the Department of Public Utilities is requesting that these accounts be written off as uncollectible. If, and when, the city receives any proceeds from the bankruptcy court, the amounts will be reinstated.
FISCAL IMPACT: Formally writing off this debt as uncollectible officially recognizes that the City will forego this revenue. This step is prudent to maintaining accurate, timely and realistic accounting records.
Title
To authorize the Director of Public Utilities to write off, as uncollectible, two unpaid electric accounts due the City of Columbus, Department of Public Utilities, Division of Power and Water, in the amount of Fifty-One Thousand, Three Hundred Ninety-Nine Dollars and Seventy-Three Cents. ($51,399.73)
Body
WHEREAS, the Division of Power and Water provided electric service to The Penn Traffic Company at 777 Neil Avenue; and
WHEREAS, the Division of Power and Water provided electric service to Big Bear Store at 2801 North High Street between; and
WHEREAS, the City of Columbus, Department of Public Utilities, Division of Power and Water is owed $51,399.73 for electric service provided to these locations between April, 2003 and June, 2003; and
WHEREAS, The Penn Traffic Company, the parent company for the Big Bear Stores, filed bankruptcy and no longer operates in this area, and the unpaid electric bills have not been paid as part of the distribution of assets; and
WHEREAS, the City Attorney has advised that this debt should be written off as uncollectible; and
WHEREAS, it is necessary to provide the Director of Public Utilities with the authority to write off this debt as uncollectible; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities be and is hereby authorized to write off as uncollectible the electric charges due from The Penn Traffic Company and Big Bear Store, in the sum of Fifty-One Thousand, Three Hundred Ninety-Nine Dollars and Seventy-Three Cents ($51,399.73), as follows:
ACCOUNT NO. NAME SERVICE LOCATION AMOUNT
140-23-20553-10 The Penn Traffic Co. 777 Neil Avenue $19,865.80
180-23-16241-01 Big Bear Store 2801 N. High Street 31,533.93
$51,399.73
SECTION 2. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.