Mr. Simon, Backcharge your Attorney $67,260
Friday, July 6, 2012
By Kurt Huttar
Mr. Paul Simon of Augusta Riverfront, LLC dutifully submitted a 2012 Operating Budget and Capital Budget to the City of Augusta early in the year, as required by the proposed Reynolds Street Parking Deck Management agreement. Included was the cost of a parking deck sweeper.
Houston, we have a problem. You see, the proposed management agreement only allows capital expenditures under pretty limited circumstances. It reads like this – “Capital Improvements” (Capital expenditures) shall mean one or more items or project(s) – i) the cost of each of which totals $5,000.00 or more, ii) that becomes part of the RSPD, and iii) the cost of which is required or allowed to be capitalized under the accounting guidelines of Augusta, Georgia and GAAP.
Since the sweeper is a piece of mobile equipment, it cannot be “part of the RSPD,” can it?
Hopefully, Augusta Riverfront, LLC has not purchased this sweeper under its interim agreement, because if it has, some citizen might demand Augusta’s money back from this purchase, as it is not allowed.
Since taxes and freight of 14% were added to the $59,000 estimated cost, the total would be $67,260.
Since Augusta Riverfront lawyers missed this point, shouldn’t Mr. Simon bill them for this cost?
For another thing, won’t this sweeper be used over in the TEE Center Parking Deck, where Augusta Riverfront is leasing the parking deck? Doesn’t it create an accounting conflict to have 100% of the cost of the sweeper born by the Reynolds Street Parking Deck, which is totally funded by city taxpayers, instead of the TEE Center Deck?
Here is one analyst who wants answers.***