HomeMy WebLinkAboutSA RESO 2015-66RESOLUTION NO. 2015 — 66
RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY
TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY
REDEVELOPMENT AGENCY AI i T HORIZ!NG THE CHAIRMAN TO EXECUTE
A SETTLEMENT AGREEMENT BETWEEN THE SUCCESSOR AGENCY TO
THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY
REDEVELOPMENT AGENCY AND ROSENOW SPEVACEK GROUP, INC.,
TO RESOLVE THE PENDING ARBITRATION PROCEEDING
'WHEREAS, On February 20, 2007, the former Community Development
Commission of the City of National City ("CDC") entered into an Agreement with Rosenow,
Spevacek Group, Inc. (RSG) for the 2007 Redevelopment Plan Amendment; and
WHEREAS, the 2007 Redevelopment Plan Amendment was prepared by RSG
and eventually adopted in July of 2007; and
WHEREAS, on or about September 2007, the 2007 Redevelopment Plan
Amendment was challenged by the Community Youth Athletic Center (the CYAC matter). In
addition to the reverse validation challenge to the 2007 Redevelopment Plan Amendment, the
CYAC matter alleged violations of the public records act, due process, and takings; and
WHEREAS, the CYAC matter was dismissed, appealed, remanded, tried,
appealed, and remanded over the years between 2007 and 2015; and
WHEREAS, the appellate court affirmed the invalidation of the 2007
Redevelopment Plan Amendment, and found a violation of the Public Records Act based upon
records not being furnished by RSG for disclosure; and
WHEREAS, In April 2015, the trial court entered judgment in the CYAC matter,
awarding fees in the amount of $2,016,249.87; and
WHEREAS, in or about 2011, the City and CDC commenced arbitration
proceedings seeking damages against RSG arising out of work performed by RSG pursuant to
its contract with the CDC (the Arbitration Proceedings); and
WHEREAS, during the pendency of the Arbitration Proceedings, the parties
engaged in two lengthy negotiations conducted at two mediation sessions over many months;
and
WHEREAS, RSG has agreed to pay the City and CDC the balance of their
$2,000,000 policy limits that remain after payment has been made mail legal fees and costs
incurred by RSG in connection with the defense and settlement of the Arbitration Proceedings,
currently estimated at about $'i.8M; and
WHEREAS, these actions require Oversight Board approval and DOF approval
before they are final.
NOW, THEREFORE, BE IT RESOLVED that the Board of the Successor Agency to the
Community Development Commission as the National City Redevelopment Agency hereby authorizes
the Chairman to execute the Settlement Agreement between the Successor Agency to the Community
Development Commission as the National City Redevelopment Agency and Rosenow Spevacek
Group, Inc., to resolve the pending Arbitration Proceeding.
Resolution No. 2015 - 66
Page Two
PASSED and ADOPTED this 16th day of .tune, 2015.
4a� � —
Ron Morrison, Chairman
ATTEST:
N
Michael R. Dalla, City Clerk as
Secretary to the Successor Agency
Passed and adopted by the Successor Agency to the Community Development
Commission as the Redevelopment Agency of the City of National City, California, on
June 16, 2015 by the following vote, to -wit:
Ayes: Boardmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
:Use= None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman of the Successor Agency to the
Community Development Commission
as the Redevelopment Agency of the
City of National City, California
By:
! r
ty Clerk Serving as Secretary
to the Successor Agency
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2015-66 of the Successor Agency to the Community Development
Commission as the Redevelopment Agency of the City of National City, California,
passed and adopted on June 16, 2015.
City Clerk Serving as Secretary
to the Successor Agency
By
Deputy