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Home My WebLink AboutA6502 - MJM HOLDINGS ET AL - JUDGMENT ON INC 1203894 RE UUT Memorandum To: James Thompson, City Clerk Geoff Kiehl, Director of Finance From: Douglas Holland, City Attorney Date: February 27. 2014 Re: Judgment/ MJM Holdings, et al. v. Palm Springs (INC 1203894) Attached is a copy of the Judgment issued in the above litigation regarding utility user tax collections by vacation rental companies. Also attached is a check in the amount of the last payment owed the City pursuant to the Judgment for the first year. (The original payments were less than the full amount specified in the Judgment.) Pursuant to the terms of the Judgment, the vacation rental companies are obligated to pay the City $60,000. This payment will be made in three equal payments of$20,000 for three years. In addition, the City is also obligated per the Judgment to pay the sums collected to "non-profit corporation organized and administered for the purpose of marketing vacation rental opportunities in the City . . .." In addition, the Judgment also requires the City to essentially match these funds and pay a like amount to the same non-profit. Vacation Rental Managers of Palm Springs, Inc. is the non-profit that should be paid per the Judgment. A copy of recent minutes of the corporation are attached. I will forward to you a copy of the incorporation documents. The City has collected the full $20,000 for this calendar year; it is now appropriate for the City to make the requisite payment of $40,000 to Vacation Rental Managers of Palm Springs. Please prepare a check in the amount of $40,000.00 payable to "Vacation Rental Managers of Palm Springs, Inc." Please deliver the check to me as soon as possible. If you have any questions, please do not hesitate to give me a call. PALMSPRINGS ORANGECOUNTY PRINCETON �� en^NIAU'ER DAVID L.BARON - IY1I'��f 20111 baron@sbemp.com ADmtrreD]N CA 01N OF PALM SPRINGS January 13, 2014 Doug Holland City Attorney Palm Springs City Hall 3200 E Tahquitz Canyon Way Palm Springs, CA 92262 RE: PAYMENT PER JUDGMENT MJM Holdings, Inc., et al. v. City of Palm Springs Dear Doug: Enclosed is a check for $200 from Vacation Palm Springs which constitutes the remainder of the first annual installment payment from MJM Holdings and Vacation Palm Springs relative to the judgment reached. Please advise our office as to when MJM Holdings and Vacation Palm Springs can expect to receive the City's first contribution of$20,000. Very truly yours, SBEMP LP By: David L. Baron DLB/pab Enclosure cc: Vacation Palm Springs MJM Moldings, Inc. Slovak Baron F.mpey Murphy&Pinkney LLP 1800 E Tahquitz Canyon Way,Palm Springs,California 92262 Tel. (760) 322-2275 • Fax(760) 322-2107 • www.sbemp.com WELLS FARGO BANK,N.A. 17708 VACATION PALM SPRINGS w .wellsfargo.c 1276 N PALM CANYON DR STE 211 - 16-2411220 PALM SPRINGS,CA- 92252-4430 �f1 (760)778-7832 1/6/2014 PAY To THE City of Palm Springs * - ORDER OF •200.00 Two Hundred and 00/100",,,,,,.,»,,,,«,.,..,,,,,; *,.,,,«,,,,,,,,,,,,,,*,....,,,,,,,..,«„......,.. .........., .,.,.... DOLLARS City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 MEMO Vacation Rental Advertising - AUfHOR12ED 616NA RE VACATION PALM SPRINGS 17708 City of Palm Springs 1/6/2014 Va cation Rental Advertising 200.00 I CITY MAN AGER JAN 13 2014 CITY OF PALM SPRINGS VPS - WFB 7452 Man Vacation Rental Advertising 200.00 'i 2 LED .. 3 SUPERIDQR QPTRWER EERNW 4 MAY 2 8 2013 6 8 IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 IN AND FOR THE COUNTY OF RIVERSIDE—INDIO BRANCH 10 I I MJM HOLDINGS,ING.,a California Case No.: INC-1203894 corporation,dba MCLEAN COMPANY 12 RENTALS,and VACATION PALM SPRINGS JUDGMENT 13 REAL ESTATE, INC., 14 Plaintiff, vs. 15 15 CITY OF PALM SPRINGS, a Charter City, 17 Defendants. 18 19 The parties having submitted the matter to the Court for disposition, David L. Baron of 20 Slovak Baron, Empey,Murphy&Pinkney, LLP appearing for plaintiffs MJM Holdings, Inc.,a 21 California corporation,dba McLean Company Rentals, and Vacation Palm Springs heal Estate, Inc, 22 and Mark A. Wasser of the Law Offices of Mark A. Wasser appearing for defendant City of Palm 23 Springs, and the Court having read and considered the papers and pleadings on file herein,heard and 24 considered the arguments of counsel and good cause appearing; 25 IT IS HEREBY ORDERED ADJUDGED AND DECREED that defendant City of Palm 26 Springs shall havejudgment against plaintiffs MJM Holding, Inc. a California corporation, dba 27 McLean Company Rentals, and Vacation Palm Springs Real Estate, Inc.,jointly and severally, for 28 unpaid'I ancient Occupancy Tax in the amount of Sixty Thousand Dollars,payable to defendant x mroor r WINka"r1"A:Wr 1 .:+. JUDGMENT r t City of Palm Springs annually at the rate of Twenty Thousand Dollars a year, for three years. 2 IT IS FURTHER ORDERED,ADJUDGED AND DECREED that defendant City of Palm 3 Springs shall contribute one dollar for every dollar paid by plaintiffs pursuant to the previous 4 paragraph to a non-profit corporation organized and administered for the purpose of marketing 5 vacation rental opportunities in the City of Palm Springs and otherwise promoting the City of Palm 6 Springs as a premier vacation destination Membership in the non-profit corporation shall be 7- inclusive and open to each and every person-or-business entity(corporation, partnership,company, 8 etc.)that rents at least five residential vacation rental units in the City of Palm Springs and is current 9 in the payment of all transient occupancy tax as determined by the Finance Director of the City of 10 Palm Springs, Voting rights shall be equal among and between all members of the non-profit 1 I corporation and the non-profit corporation shall not have different or weighted classes of 12 membership. A copy of the by-laces of the non-profit corporation,and each amendment thereto, 13 shall be filed with counsel for the City. The obligations of this paragraph shall expire and become 14 •null and void on the thirty-first(31st)day after the City's last payment to the non-profit corporation 15 as provided herein or on such other date as the parties may agree. 16 1T IS FURTI3ER ORDERED,ADJUDGED AND DECREED that defendant City of Palm 17 Springs shall contribute, in addition to the funds described in the previous paragraph, Sixty 18 Thousand Dollars to the non-profit corporation,for the same purposes and subject to the same 19 requirements and limitations described above,payable annually at the rate of Twenty Thousand 20 Dollars a year, for three years. The obligations of this paragraph shall expire and become null and 21 void on the thirty-first(31 st) day after the City's last payment to the non-profit corporation as 22 provided herein or on such other date as the parties may agree. 23 IT IS FURTHER ORDERED,ADJUDGED AND DECREED that each party shall bear its 24 own attorney fees and costs. 25 26 Dated: ,2013 27 David 1AA 28 Judge of the Superior Court -2- JUDGMENT K L t p i Ski ° s y+ y �a1,5.i a i a •v 4 ��{ y k .ems �:,.J�f,s h, a it q'6 �(' Y X�3' 01 _ wssk.�fr� S + -t x 7: . M J1 {+�+-'2 yy 921 aJ 1 DATE:10/29/2013 CKB:7790 TOTAL:$4,612.00*** BANK:Bmcr PAYEE:CITY OF PALM SPRINGS(cityPS) (Code)Property Address (Date)Invoice Description Amount (Smcr)MCLEAN COMPANY RENTA (10/24/13) TOT SETTLEMENT 2013 PER MM 4,612.00 9,612.00 VACATION PALM SPRINGS WELLS FARGO BANK,N.A. 17011 1276 N PALM CANYON OR STE 211 w .wallsfargo.com / PALM SPRINGS,CA 92262-4430 16-2411220 / (760)778a832 10/11/2013 PAY TO THE City of Palm Springs I $`15,188.00 ORDER OF Fifteen Thousand One Hundred Eighty-Eight and 00/100"*"**"*""""""`"*""********`**""`""`"""""""**"*"'*"*' DOLLARS City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 MEMO Vacation Rental Advertising HORIZED SIGNATURE^ VACATION PALM SPRINGS 17011 City of Palm Springs 10/11/2013 Vacation Rental Advertising 15,188.00 VPS -WFB 7452 Man Vacation R ntal Advertising 15,188.00 T ACTION BY UNANIMOUS WRITTEN CONSENT OF THE SOLE IXRECTOR QF VACATION DENTAL MANAGE OF PALM SPRINGS,.INC, The undersigned sole remaining director of Vacation Rental Managers of Palm Springs,Inc.(fhs "Cor ipany")unanimously consents to the following actions without a meeting by unanimous written consent as perrnited by§5211 of the California.Corporations Code: WHEREAS, the Company wishes to adopt new Bylaws,elect a now board of directors and elect new,ofeers; THEREFORE,it is hereby: RESOLVED,that the Company's Bylaws shalt be amended and restated in their entirety to read as set forth in the artnehed Amended and.Restated Bylaws of Vacation Rental Mgnapm of Palm Springs,In.ofeven date. WRTHER RESOLVED,that the:.entities and/or persons listed below are hereby elected as the directors of the Corporation,to serve until they resign or are removed or until their successors are duly elected and qualified: MJM Holding,Inc. Rick Hutcheson CITY MANAGER Kevin Blessing DEC 1 6 2013 Peter Brooks (;,Ty OF PALM SPRINGS Mike Flannery The above-mentioned directors shall constitute the Company's Board of Directors. FURTHER RESOLVED,that the following persons are hereby elected to the offices indicated before their names to serve for one year or until their respective successors are duly elected and qualified,whichever occurs later: President and Chairmen of the Board-:Mike McLean Vice Chairman of the Board- Secretary and Treasurer-_Rick Hutcheson Dated: October L 201.3 Rick Hutcheson employee benefit plan in such Person's capacity as such:, even though such person may also be 2tt agent of the Corporation as defined in Section 1 of this Article. The Corporation shall have power to indemnify such director, investment manager or other fiduciary to he extent permitted by subdivision(0 of section 207 of the California General Corporation Law. ARTICLE IX. AMENDMENT OF BYLAWS Beatidn I. Amendments; These Bylaws and any part thereof may be w t Wed or repealed by action of the Board of the Corporation. Notwithstanding the forgoing, OW*,. the first three pears after the approval of these Bylaws amendment of these Bylaws shall require the written consent of the City Manager of the City of Palm. Springs. The Bylaws of the Corporation dated on or about Match 20, 2008 are of no further force or effect and are superseded by these Amended and Restated Bylaws. Seetion:2. Reedrd of Amendments. Whenever a new Bylaw or amendment thereto is adopted,it shall be included in the corporate minute book with the original Bylaws. If any Bylaw or amendment thereto is repealed,the fact of repeal with the date of the meeting when said repeal was adopted shall be stated in a writing placed in the corporate minute book with the original Bylaws. CERTIFICATE OF SECRETARY The undersigned, Secretary of the Corporation, a California non-profit mutual benefit corporation does hereby certify that the foregoing Amended and Restated.Bylaws were duly adopted by the Board of Directors on October !0 ,2013. Dated: October, 10 2013 13