Businessman Peter Fung Pays City of Sammamish Money Owed for Construction Services Provided

Businessman Peter Fung has paid the city of Sammamish the more than $4,180 that he owed since at least last year for construction-related services, the deputy city manager confirmed Wednesday.

Fung's name appeared in public documents in April when the City Council voted to remove $113,309 in uncollected debt from the books, largely to follow standard accounting practices and because the money had gone unpaid for a long period of time. But city leaders did not forgive that amount.

The money, owed by about 30 parties and individuals, was for inspection, permitting and other construction services provided by city staff before the end of 2009.

But the Great Recession and its aftermath left many with unfinished projects, fewer dollars and debt. City staff and a collection agency had contacted the parties to request that the bills be paid.

Fung's name surfaced again in documents prepared for Monday's City Council meeting. On Page 7 of a 167-page packet of documents, his name is listed under "Top Five Expense Items in Packet." The document shows a "release deposit" to Fung for $87,029.49.

Lyman Howard, deputy city manager, confirmed in an email that the Peter Fung who showed up in the April city documents is the same one in the government papers from this week.

"We collected the amount owed and remitted the difference to him," Howard said.

"He had posted a deposit for improvements at a bank. The development didn't take place. We released the deposit subject to what the city was owed."

Howard has said that the amount owed would be covered by Sammamish taxpayers - should those dollars never make their way into a city account. When Sammamish Patch asked some residents in April about the unpaid bills, they said it is the responsibility of people who owe money to pay it.

Since the beginning of 2010, the city requires larger deposits to pay for city services, such as inspections and permits. Since those new rules went into effect, there has been no unpaid bill, Howard has said.

He added that the city budget has contingencies to cover unexpected events. Also, he said, the unpaid dollars would not affect the budget or Sammamish's bond ratings. 

In the case with Fung, Howard said Wednesday: "The system worked."