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Home My WebLink AboutCC RESO 15,803i RESOLUTION NO. 15803 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE PREFERRED ACQUISITIONS GROUP, INC (HA'PENNY INN) TO PAY DELINQUENT TRANSIENT OCCUPANCY TAX, PENALTIES AND INTEREST PURSUANT TO PAYMENT SCHEDULE WHEREAS, the City of National City imposes a transient occupancy tax upon motels operating within the city, and furthermore imposes penalties and interest upon said tax if unpaid; and WHEREAS, the Ha'Penny Inn is a motel operated by The Preferred Acquisitions Group, Inc., within the City and has fallen delinquent in payment of said taxes, penalties and interest; and WHEREAS, The Preferred Acquisitions Group, Inc., recognizes the obligation and wishes to arrange for payment of said monies owing, according to a schedule outlined in the attached AGREEMENT; and WHEREAS, the city is willing to accommodate The Preferred Acquisitions Group, Inc., in this matter so long as it complies with the AGREEMENT. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby agrees to allow The Preferred Acquisitions Group, Inc., to pay delinquent and current transient occupancy tax penalties and interest pursuant to the AGREEMENT attached hereto as Exhibit "A." BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute said AGREEMENT on behalf of the City of National City. PASSED and ADOPTED this 6th day of December, 1988. ATTEST: Lori Anne Peoples, City Clerk APPROVED AS TO FORM: George H. ters, Mayor George H. Eiser, III, City Attorney AGREEMENT This Agreement is made and entered into between the CITY OF NATIONAL CITY, hereinafter referred to as "CITY" and THE PREFERRED ACQUISITIONS GROUP INC., a privately held California Corporation, hereinafter referred to as "MOTEL." This agreement is made with reference to the following recitals: A. Ha'Penny Inn is a motel renting 74 units located at 1535 E. Plaza Blvd., National City, California, 92050. It's state license number is B324587; its federal employer I.D. number is 95- 3217928; it is owned by The Preferred Acquisitions Group, Inc. B. As a motel operating within the City it is obligated to collect, report and pay transient occupancy tax, pursuant to national City Municipal Code § 4.32 et seq. and California Revenue and Taxation Code §§ 7280 and 7281. C. Transient occupancy tax is fixed at eight percent of the rent charged, following the and is due on or before the last day of the month close of each calendar quarter. A return must be filed with the City accompanying the payment of the tax, indicating the total rents charged and received. The City may, at its option, require shorter reporting periods it deems necessary to insure collection of the tax and may require further information in the return. D. Failure to remit taxes as described above within the time required will result in a penalty of ten percent of the amount of the tax, in addition to the amount of the tax. E. Continued failure to remit any delinquent payment on or before a 30 day period following the date on which the payment first became delinquent, will result in a second delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the ten percent penalty first imposed. F. In addition to the penalties imposed as described above, delinquent taxes accrue interest at the rate of one half of one percent per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the taxes first became delinquent, until paid. G. Every penalty imposed and interest accrued as described above become a part of the tax required to be paid. H. It is the duty of the MOTEL to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of the transient occupancy tax, which records the City has the right to inspect at all reasonable times. I. Any tax collected by and required to be paid by the MOTEL as transient occupancy tax, which has not been paid to the CITY is deemed a debt owed by the MOTEL to the CITY. J. MOTEL is not presently able to pay the total amount of the transient occupancy taxes, penalties, and interest, which have accrued since the 2nd quarter of 1987. This is due to drop in occupancy, and an increase in operating expenses. K. The amount of the taxes is computed as follows, based on transient rents charged and received as reported by the MOTEL on their Transient Occupancy Tax Returns filed for the periods indicated: Quarter Rents Penalties Interest/Mo Intere0t 191 thN.. 2nd - 1987 $11,280.43 2,256.08 56.40/mo 902.40 8-1-87 forward 3rd - 1987 10,900.85 2,180.18 54.50/mo 708.50 11-1-87 forward 4th - 1987 7,200.34 1,440.06 36.00/mo 360.00 2-1-88 forward 1st - 1988 10,248.06 2,049.62 51.24/mo 358.68 5/1/88 forward 2nd - 1988 11,722.72 2,344.54 58.61/mo 234.44 8-1-88 forward 3rd - 1988 12,445.16 2,489.04 62.23/mo 62.23 11-1-88 TOTALS $63,797.56 $12,759.52 $2,626.25 L. MOTEL freely admits and confirms that these are the amounts due and owing CITY and fully acknowledges that MOTEL is lawfully obligated on this debt. M. In order to satisfy the debt and reach a full and final settlement of all matters pertaining to this debt, CITY and MOTEL have mutually agreed that MOTEL shall pay the debt in installments as set forth hereinbelow. NOW THEREFORE, in consideration of the mutual covenants set forth herein, CITY and MOTEL agree as follows: 1. MOTEL has already paid as of November 28, 1988, (copy of receipts attached) to CITY the sum of Twenty Thousand and No/100th Dollars ($20,000.00), to be credited against the tax owing beginning with the second quarter of 1987. 2. Hereafter payments shall be paid to CITY weekly, to be postmarked Tuesday November 15, 1988 and every Tuesday thereafter until all past due amounts, interest, and penalties are paid in full. Each payment to be in the amount of not less than Five Thousand and No/100th Dollars ($5,000.00). 3. All payments shall be via cashier's check drawn on a bank located in the state of California. 4. All payments shall be deducted from the monies owing beginning with the oldest debt first i.e., the amount of tax, penalties and interest, in that order, from the 2nd quarter of 1987. 5. All transient occupancy tax figures will be reported on a monthly basis until the MOTEL is current on its account. That is, tax due will be computed, reported, filed and received no later than the last day of the month following, for transient occupancy tax accruing during the proceeding month i.e., transient occupancy tax report for October 1988, to be filed, with payment for that month no later than November 30, 1988; transient occupancy tax for 4 November, 1988 to be filed with payment for that month, no later than December 31, 1988, etc. 6. MOTEL is to keep current i.e., paid up, on all taxes for months after September, 1988 and in no event be permitted to become delinquent on such tax. Payments for months after September 1988, to be filed monthly, need not be via cashiers checks. 7. CITY will inspect the books of account for MOTEL at reasonable times upon 7 days written notice. MOTEL will cooperate with said inspections and make books and calculations available for review. 8. This Agreement shall become immediately null and void, the obligation which MOTEL acknowledges shall become immediately enforceable by CITY, and MOTEL expressly waives any applicable statute of limitations which may apply to enforcement of said obligations by CITY, upon the occurrence of any of the following: (a) Discovery that any misrepresentation, intentional or grossly negligent, was made by any party in connection with the making of this Agreement. (b) Failure of MOTEL to make any payment when due if said failure is not remedied within 5 days after CITY gives written notice of default to MOTEL. Notice of default will be deemed given two days after it is deposited in the United States mail, first class postage prepaid, addressed to MOTEL and corporate offices: Ha'Penny Inn The Preferred Acquisitions Group 1535 E. Plaza Blvd. 500 N. State College Blvd. National City, CA 92050 #1200 Orange, CA 92666 with a copy to: L. Baird Albertsen Corporate Secretary and Counsel 500 N. State College Blvd. #1200 Orange, CA 92666 23. This Agreement shall bind and inure to the benefit of the parties and their heirs, legal representatives and assigns, provided that this Agreement shall not be assigned by either party without the mutual consent of the parties hereto. DATED: /c2 _7_ ,c,t DATED: APPROVED AS TO FORM: DATED: APPROVED AS TO CONTENT: DATED: \ 2- 0s- n CITY OF NATIONAL CITY THE PREFERRED ACQUISITIONS GROUP, INC. BY: L. Baird Albertsen Corporate Secretary and Counsel GEORGE H. EISER, III City Attorney L DA KAYE H 'TER Assistant Ci y Attorney ALEX rLOZA, Fin ce Director