HomeMy WebLinkAboutContracts & Agreements_181-2007_CCv0001.pdf SETTLEMENT AND RELEASE AGREEMENT
This Settlement and Release Agreement (hereinafter referred to as the "Settlement
Agreement") is made and entered into this ?nd day of October. 2007, by and between the
Citi of Redlands, a municipal corporation and general law city organized under the laws
of the State of California("City") and Redlands Deveiopment 102 LLC, a California
limited liability company, ("Company"). City and Company are sometimes individually
referred to herein as a "Party" and, together, as the Parties.
A. RECITALS
I. Company is the developer of Tract No. 12382 in the City of Redlands.
2. City is the owner of a 24-inch diameter water transmission pipeline
commonly known as the -Hiol-iline"that delivers water from the Henry Tate surface
water treatment plant southerly to the Fifth Avenue Reservoir and the Country Club'
Reservoir. The Hiahline is an integral part of City's water transmission System for the
higher elevation pressure zones within City's service area.
3. During the course of preparing development requirements for Tract No.
12382. City's Municipal Utilities staff concluded it would be cost effective to coordinate
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4- � i Company to design and relocate a portion of the Highline. into Wabash Avenue
I r0m Sunset Drive to the south of Tract No. 12382, as part of City's overall plan to
replace I (hereinafter the "Project"`}.
ice the Highline Ject
4. Company proceeded with construction and relocation of the Highline as
requested by City for a cost of One Hundred Fifty-Four Thousand Nine Hundred
Seventy-Two Dollars ($154,972).
5. The improvements and relocation of a portion of the Highline undertaken
by Company represent a substantial savings to City because such construction Was
Performed concurrently with other utilities, before street paving and improvements, and
minimized impacts to citizens.
6. City now wishes to compensate Company for the construction and
relocation of the Highline as requested by City.
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B. AFFIRMATIVE COVENANTS
Now, therefore, in consideration of the foreaoin-recitals, all of which are true
and correct and incorporated herein by reference,the Parties agree to the following:
I. City shall pay the sum of One Hundred Fifty-Four Thousand Nine
Hundred Seventy-Two Dollars ($154.972)to Company within ten (10) days of the
Effective Date of this Settlement Agreement.
2. The Parties shall execute releases as to each other. The releases are more
fully set forth in Section "C" below.
C. RELEASES OF CLAIMS
I. In exchange for the consideration set forth in Section "B * above,
Company, on behalf of itself and its past,present and future assigns, successors-in-
interest, affiliates. and partners hereby releases, relinquishes. waives, discharges.
absolves and acquits City. and all past, present and future predecessors, successors,
assigns, employees and agents of City, from any and all past,present or future rights,
claims, demands, obligations or causes of action for compensatory or punitive damages,
equitable relief, costs, losses, expenses and compensation of every kind and nature
whatsoever,whether known or unknown. whether past, present or future. whether based
in contract. tort, statute or other legal or equitable theory of recovery, which Company
has,had or which may later accrue to or be acquired by Company against City arising_
from or related to the performance of the Project as set forth in Section '*A,'* above.
2. City, on behalf of itself and each of its respective past, present and future
assigns. successors-in-interest and affiliates hereby releases. relinquishes, waives,
discharges. absolves and acquits Company and all of Company's past, present and future
predecessors. successors. assigns, officers, directors, agents and employees, from any and
all past, present or future rights, claims. demands, obligations or causes of
action for
indemnification. contribution., reimbursement., equitable relief, costs. losses., expenses and
compensation of every kind and nature whatsoever, whether known or unknown, whether
past, present or future., whether based in contract. tort, statute or other legal or equitable
theory of recovery, which City has., had, or which may later accrue to or be acquired by
City for the amounts paid pursuant to this Settlement Agreement and its acceptance of
Project.
3. Waiver of Civil Code Section 1542 The Parties intend and agree that the
foregoing release shall be effective as a bar to all actions, causes of action, obligations,
costs, expenses, attorneys' fees, damages, losses, claims. liabilities and demands of
whatsoever character, nature and kind., known or unknown, -suspected or unsuspected,
relating to the Proiect and the Parties each independently and expressly waive any and all
rights and benefits conferred upon them by the provisions of section 1542 of the
California Civil Code, which reads as follows:
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GENERAL RELEASE.—CLAIMS EXTINGUISHED
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR,HER SETTLEMENT WITH THE DEBTOR.
The Parties hereby acknowledge that the foregoing waiver of the provisions of
section 1542 of the California Civil Code was separately bargained for. The Parties
expressly agree that the release provisions shall be given full force and effect in
accordance with each and all of their express terms and provisions. including those termsand provisions relating to unknown or unsuspected claims. demand's and causes of action.
if any, to the same extent as those terms and provisions relating to any other claims,
demands and causes of action specified above. The Parties to this Settlement Agreement
each assume the risk of the subsequent discovery or understanding of any matter, fact or
law, which, if now known or understood, would in any respect have affected this
Settlement Agreement.
D. REPRESENTATIONS AND WARRANTIES
The Parties to this Settlement Agreement represent and warrant to. and agree
with, each other as follows:
1. Except as expressly stated in this Settlement Agreement, neither of the
Parties have made anv statement or representation to the other Party regarding any fact
which is relied upon by such other party entering into this Settlement Agreement. No
Partv to this Settlement Agreement relies upon any statement, or representation or
promise of the other Party, not contained in this Settlement Agreement, in executing this
Settlement Agreement or in making the settlement.
2. This Settlement Agreement is the result of a compromise of disputed
claims and shall never at any time for any purpose be considered as an admission of
liability or responsibility on the part of the Parties herein released. This Settlement
Agreement is made solely to avoid the expenses of possible litigation and risks attendant
thereto.
3. The Parties represent and warrant to each other that each Party is the sole
and lawful owner of all right, title and interest in and to every claim which it purports to
release and that each Party will not and has not committed or permitted or agreed to any
sale, encumbrance, hypothecation or transfer, whether by operation of law or otherwise,
of any claim, right or cause of action to be released, discharged or assigned, or which
otherwise would have been affected pursuant to the provisions of this Settlement
Agreement.
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4. The Parties to this Settlement Agreement have thoroughly investigated the
facts related to the Project. The Parties warrant that they freely entered into this
Settlement Agreement and are not entering into the Settlement Agreement because of any
duress or fear and are fully authorized to enter into the terms and conditions set forth
herein, to execute the Settlement Agreement, and to legally bind the Parties. The Parties
hereto further warrant that theyhave read this Settlement Agreement, have consulted
with their attorneys and understand and agree to the provisions herein.
E. ADDITIONAL PROVISIONS
I. Drafting Agreement. The Parties to this Settlement Agreement shall be
deemed to have cooperated in the negotiation and drafting of this Settlement Agreement,
such that no ambiguity in this Settlement Agreement may be construed against any Party.
2. Successors, Assigns.and Beneficiaries. This Settlement Agreement shall
be binding upon and inure to the benefit of the Parties, and their respective employees.
agents, successors, assigns and insurance carriers.
3. Entire_Agreement. This Settlement Agreement constitutes the entire
agreement between the Parties as to the matters contained herein and it is expressly
understood and agreed that this Settlement Agreement may not be altered. amended.
modified or otherwise changed in any respect whatsoever except by a writing duly
executed and authorized by each of the Parties. The Parties hereby agree and
acknowledge that they will not claim at any time or place that this Settlement Agreement
has been orally altered or modified or otherwise changed by oral communication of any
kind or character.
4. Applicable Law. This Settlement Agreement shall be deemed to have
been executed and delivered within the State ofCalifornia. and the rights and obligations
of the Parties shall be governed by and construed and enforced in accordance with the
laws of the State of California.
5. Authority. Each person and entity executing this Settlement:Agreement
on behalf of any other person or entity does hereby personally represent and warrant to
the other Party that he. she or it has the authority to execute this Settlement Agreement on.
behalf of., and fully bind, such purported principal.
6. Anti-Waiver. The failure of any Party to enforce any of its rights arising
by reason of any breach of covenant on the part of the other Party will not constitute a
waiver of such breach. No custom or practice which may arise between the Parties in the
course of administrating this Settlement Agreement will be construed to waive any
Party's right to (i) insist upon the performance by the other Party of any covenantinthis
Settlement Agreement or(ii) exercise any rights given it on the account of any breach of
such covenant. A waiver of a particular breach will not be deemed to be a waiv=er of the
same or any other subsequent breach.
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7. Independent Advice of Counsel. The Parties to this Settlement Agreement
represent and declare that in executing this Settlement Agreement they rely solely upon
Judgment, belief and knowledge.their own e�'
ge. and the advice recommendations of their
own independently selected counsel, concerning the nature, extent and duration of their
rights and claims hereunder and regarding all matters which relate in any way to the
subject matter hereof, and that, except as provided herein, they have not been influenced
to any extent whatsoever in executing this Settlement Agreement by any representations,
statements or omissions pertaining to any of the foregoing matters by any party or by any
persons representing any Party to this Settlement Agreement.
8. Survival. All representations and agreements set forth in this Settlement
Agreement shall be deemed continuing and shall survive the effective date of this
Settlement Agreement,
9. Further Assurances. The Parties agree to execute such other documents
and to take such other actions as may reasonably be necessary to further the purpose of
this Settlement Agreement,
10. Headings. The descriptive headings of the several articles and paragraphs
contained in this Settlement Agreement are inserted for convenience only and shall not
control or affect the meaning of construction of any of the provisions hereof.
11. Attorneys' Fees. If either Party to this Agreement incurs costs or attorney
fees to enforce any of the provisions of this Agreement. the prevailing Party in any such
action, including any lawsuit or arbitration, shall be entitled to recover all costs and its
reasonable attorneys' fees, including fees for the use of in-house counsel by a Party.
DATED:
Bv:
"I r
Title:T`
`61
DATED: October 2, 2007_ CITY OF REDLANDS
By:
Tiiiie- �on o
�� Harrison Ma r
ATTE ST-.-`\,
Lorrie Pz r, 'City Clerk
qy
DMA gree"Citv- Redlands Development Settlement Agreement
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