ORDINANCE No. 178380

* Authorize agreement with J. J. Mac Intyre Co., Inc. to collect judgment and outstanding invoices for Smart Park validations against Kolonaki, Inc. (Ordinance)

The City of Portland ordains:

Section 1.  The Council finds:

1.  The lease agreement for the premises at 327 S.W. Morrison was sold to Kolonaki, Inc. as a result of the bankruptcy of Jay Jacobs, the City’s original tenant for the premises. Under the bankruptcy, the City was required to rent the premises to Kolonaki, Inc., dba Georgiou’s. Kolonaki, Inc. On or before April 2003, Kolonaki Inc. failed to pay rent when due and subsequently abandoned the premises.

2.  In July 2003, the City obtained a judgment against Kolonaki, Inc. for past due rent and other charges in the amount of $226,116.52 plus accruing interest.

3.  Kolonaki, Inc. is a foreign corporation and no longer has any business activity in Oregon. However, Kolonaki, Inc. maintains a business presence in the State of California.

4.  The City Attorney’s Office researched collection options for this judgment. Collection agencies in the San Francisco, California area, where Kolonaki, Inc. is located, charge about thirty percent (30%) of the amount collected as a fee. The City of San Francisco was also contacted. The City of San Francisco uses J. J. Mac Intyre Co., Inc. for that city’s extensive collection work. J. J. Mac Intyre Co., Inc. has offered the City of Portland the same rate of 25% that it offers the City of San Francisco.

5.  The contingent fee of J. J. Mac Intyre Co., Inc. will be paid solely from any monies it collects on this judgment.

6.  As incidental collection, the City will also request J.J. Mac Intyre Co. Inc. to attempt collection of several outstanding invoices for monies owed by Kolonaki Inc. to the City for Smart Park validations, which total less than $2,000. The same contingent fee rate applies to collection of these outstanding invoices.

NOW, THEREFORE, the Council directs:

a.  The provisions of PCC Chapter 5.68 shall be waived.

b.  The Director of the Bureau of General Services shall be authorized to enter into an agreement, in a form substantially similar to that attached hereto as Exhibit A, with J. J. Mac Intyre, Co., Inc. to collect the City’s judgment against Kolonaki, Inc. and the outstanding invoices for parking fees.

Section 2.  The Council declares that an emergency exists because it is important to begin collection of the City’s judgment as soon as possible to avoid any distribution of assets by Kolonaki, Inc. that would be subject to the City’s judgment or outstanding obligation; therefore, this ordinance shall be in full force and effect from and after its passage by Council.

Mayor Vera Katz

Nancy E. Ayres/Linda S. Law:jtl

April 15, 2004

BACKING SHEET INFORMATION

AGENDA NO. 487-2004

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 178380