To: Board of Supervisors
From: Greg Baer, Director of Airports
Report Title: AUTHORIZE Write Off of Uncollectable Account Receivable Balance
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Director of Airports or his designee to write off the uncollectible outstanding balance of former tenant, FM Aviation, dba Sterling Aviation, in the amount of approximately $28,228. (100% Airport Enterprise Fund)
FISCAL IMPACT:
The impact of the write-off will be borne by the Airport Enterprise Fund.
BACKGROUND:
The Airport is carrying an outstanding balance from the account of former tenant, FM Aviation, Inc. (dba Sterling Aviation), in the amount of approximately $28,228 due to non-payment of ground rent. In mid-2025 the Board authorized the termination of Sterling Aviation and to initiate legal action through an Unlawful Detainer action. By the end of 2025, and as part of the Unlawful Detainer proceedings, the County and Sterling Aviation executed a Settlement Agreement. As a result of that agreement, the balance of approximately $28,228 was deemed unrecoverable. For this reason, Airports staff recommends that the outstanding balance be written off.
CONSEQUENCE OF NEGATIVE ACTION:
The Airport Enterprise Fund will be overstated by approximately $28,228.