HomeMy WebLinkAboutCC RESO 2016-119RESOLUTION NO. 2016 — 119
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
APPROVING THE FINAL AUDIT REPORT FOR THE MORGAN SQUARE
BUSINESS IMPROVEMENT DISTRICT FOR THE PERIOD OF
JANUARY 1, 2008 THROUGH AND INCLUDING JUNE 30, 2014
WHEREAS, the Morgan Square Property and Business Improvement District (the
"District") was formed on August 3, 2004, pursuant to the California Property and Business
Improvement District Law of 1994 (Sts & Hwy Code Section 36600 et seq., "PBID Law") to
provide for the maintenance, operations, and servicing of certain improvements in the District,
which generally includes parcels with frontage on National City Boulevard and Roosevelt
Avenue between 2nd Street and 12'h Street, and on 8'h Street between Interstate 5 and D
Avenue; and
WHEREAS, on March 8, 2005, the Community Development Commission
("CDC") and National City Morgan Square, Inc. ("Morgan Square") entered into an Agreement
for the administration and operation of the District pursuant to the Management District Plan and
PBID Law; and
WHEREAS, pursuant to the terms of the Agreement, the City transferred
approximately $1,163,000 collected from the levy of assessments in the District to Morgan
Square, and in return, Morgan Square was to utilize these funds as set forth in the Agreement
for activities and services in the District; and
WHEREAS, the District expired pursuant to its own terms in 2010 in accordance
with PBID Law, and no action was taken by any of the Parties to renew the District; and
WHEREAS, on June 25, 2013, the City and the Successor Agency filed suit
against Morgan Square for breach of the Agreement and violation of the PBID Law because
Morgan Square did not provide certain accounting records and documentation to the City, and
upon expiration of the District, had not taking steps to refund the remaining District Funds in
Morgan Square's possession to the assessed property owners; and
WHEREAS, the Parties negotiated a Settlement Agreement and Release, which
was approved by the City Council on December 15, 2015, and by the Oversight Board of the
Successor Agency on April 20, 2016, and subsequently by the California Department of Finance
with the following terms:
1. Morgan Square shall prepare and submit a final audit to the City.
2. Morgan Square shall return the funds to the City.
3. The City will refund the funds in accordance with PBID Law.
4. The Successor Agency and the City shall recover $54,006.92 in attorney's fees,
payable from the funds; and
WHEREAS, Morgan Square prepared a Final Audit Report for the period of
January 1, 2008 through and including June 30, 2014 that concluded there was $256,589 in
cash and equivalents as of June 20, 2014; and
WHEREAS, a declaration was provided to the City certifying there has been no
activity related to expenses paid since the time of the audit statement.
Resolution No. 2016 — 119
Page Two
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby approves the final audit report for the Morgan Square Business
Improvement District for the period of January 1, 2008 through and including June 30, 2014.
PASSED and ADOPTED this 16th day of Augu
ATTEST:
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Mich I R. Dalla, Cit Clerk
PROVED AS TO FO
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City Atto
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on Morrison, Mayor
Passed and adopted by the Council of the City of National City, California, on August
16, 2016 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
Jerk of the City of fV
City ational City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2016-119 of the City of National City, California, passed and
adopted by the Council of said City on August 16, 2016.
City Clerk of the City of National City, California
By:
Deputy