HomeMy WebLinkAboutCC RESO 2015-158Corrected Resolution
RESOLUTION NO. 2015 — 158
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY AND THE SUCCESSOR AGENCY
TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY
REDEVELOPMENT AGENCY REGARDING THE DISTRIBUTION OF ANTICIPATED
SETTLEMENT PROCEEDS FROM THE RSG ARBITRATION MATTER
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, in September 2007, the 2007 Redevelopment Plan Amendment was
challenged by the Community Youth Athletic Center (the "CYAC matter"); and
WHEREAS, in April 2015, the trial court entered judgment in the CYAC matter,
awarding fees to CYAC in the amount of $2,016,249.87; and
WHEREAS, in 2011, the City and CDC (now the Successor Agency to the
Community Development Commission as the National City Redevelopment Agency ("SA"))
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, in the Arbitration Proceedings, the City and SA alleged that RSG
negligently performed its contractual obligations resulting in compensatory damages; and
WHEREAS, the parties agreed in the Arbitration Proceedings to settle the matter
for insurance policy limits estimated at $1,800,000, contingent upon approval by the Oversight
Board and the California Department of Finance ("DOF"); and
WHEREAS, the Oversight Board approved the settlement, but the DOF denied
approval because the DOF required documentation of the settlement distribution between the
SA and the City; and
WHEREAS, the proposed memorandum of understanding between the City and
SA addresses DOF's concern and distributes the settlement proceeds proportionally between
the City and SA based on each party's respective percentage of damages with the total
approximate damage claimed by the SA at $24,702,589. and the total approximate damage
claimed by the City at $20,777,074. This methodology results in the SA receiving 54% and the
City receiving 46% of the balance of the settlement proceeds, after the attorneys' fees are paid;
and
WHEREAS, the MOU must be approved by both the Oversight Board of the
Successor Agency to the Community Development Commission as the National City
Redevelopment Agency ("Oversight Board") and the California Department of Finance prior to
being effective.
Resolution No. 2015 — 158
Page Two
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute a Memorandum of Understanding
between the City and the Successor Agency to the Community Development Commission as
the National City Redevelopment Agency regarding the distribution of anticipated proceeds
from the RSG Arbitration matter.
PASSED and ADOPTED this 20th day of October, 2015.
ATTEST:
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Michael R. Dalla, City Clerk
PPROVED
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•lf':ia Gacitu. Silva
City Attorney
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on Morrison, Mayor
Passed and adopted by the Council of the City of National City, California, on October
20, 2015 by the following vote, to -wit:
Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
City Clerk of the City of N onal City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2015-158 of the City of National City, California, passed and
adopted by the Council of said City on October 20, 2015.
City Clerk of the City of National City, California
By:
Deputy