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CONTRACT 3627 Settlement AgreementSETTLEMENT AGREEMENT 1. PARTIES 3627 This Settlement Agreement ( "Agreement ") is made and executed as of August 9, 2006, by and between Kathy Dragone ( "Dragone ") and the City of El Segundo ( "City "). 2. RECITALS 2.1 Kathy Dragone is the sole owner of the property commonly known as 922 Sheldon Street, El Segundo, California ( "Property "); 2.2 On or about September 7, 2004 the City issued building permits to the property owner of the property commonly known as 916 and 916 '/z Sheldon Street for construction of two dwelling units on the property ( "Permits ") which located immediately adjacent to the Property owned by Dragone. 2.3 Dragone contends the City unlawfully issued the Permits as such purport to allow the construction of two residential dwelling units on the property and that the Permits are not in compliance with the El Segundo Municipal Code ( "ESMC "). Dragone contend further that she suffered economic damages as a result of the City issuing the Permit. The City disputes that it committed any unlawful act or any responsibility for the alleged damages suffered by Dragone. The parties contentions set forth in this Section 2.3 are collectively referred to herein as the "Dispute." 2.4 The parties understand and agree that a material purpose of this Agreement is to resolve the Dispute and to amicably settle and resolve all claims related to the Dispute. 3. CONSIDERATION 3.1 The parties hereby agree that: the City shall within 5 business days of the execution of this Agreement deliver a check in the amount of $17,500 to Dragone made payable to Kathy Dragone; and, Dragone shall release whatever claims she has against the City, if any, arising out of the Dispute as set forth in Section 4 of the Agreement. 3.2 Dragone and the City shall each bear their own attorney fees and costs incurred in connection with the Dispute and Agreement. Dragone shall provide the City with the her social security information upon execution of this Agreement so that the City can issue a Internal Revenue Service Form 1099 income statement to Dragone with respect to the $17,5000 payment referenced above. The City's expressed belief or opinion is the payment of $17,500 and the issuance of an Internal Revenue Service Form does not necessarily constitute taxable income. Notwithstanding the foregoing, Dragone shall be solely responsible and liable for paying all federal, state and local taxes associated with the $17,500 payment, including fines and penalties, if any, that may arise from the Dragone's receipt of the payment. Dragone Settlement 06 05 06.doc -I- 3627. 3.3 The City shall for a period of one year waive all permit fees associated with the construction of the block wall located in the southeast corner of the Property, a concrete three foot wide walkway along the length of the southern portion of the property, and drainage repair work on the southwest corner of the Property. Notwithstanding the foregoing, the City shall have no obligation to grant a permit for any such repair or construction activities unless such are all in compliance with the City's Municipal and Building and Safety Codes. Should any dispute arise between the City and Dragone regarding the processing of such permits, except with respect to the waiver of fees for such permits or variances, such dispute shall not alter or have any bearing on the parties rights and obligations under this Agreement, including without limitation the release granted by Dragone pursuant to Section 4. 4. RELEASE In exchange for the payment, representations and covenants made herein, and except only as to such rights or claims as may be created by this Agreement, Dragone hereby, and for her respective heirs, representatives, successors, and assigns, release, acquits, and forever discharge the City and all of its respective agents, officers, current and former elected and appointed officials, current and former employees, representatives, insurers, agents, and all persons acting by, through, under, or in concert with any of them, and each of them, from any and all claims, charges, complaints, liabilities, obligations, promises, benefits, agreements, controversies, costs, losses, debts, expenses, damages, actions, causes of action, suits, rights, and demands of any nature whatsoever, known or unknown, suspected or unsuspected, which the parties now have or may acquire in the future, which relate to or arise out of any act, omission, occurrence, condition, event, transaction, or thing which was done, omitted to be done, occurred or was in effect at any time from the beginning of time up to and including the date of this Agreement relating or arising from the Dispute ( "Claims "), without regard to whether such Claims arise under the federal, state or local constitutions, statutes, rules, ordinances or regulations, or the common law. In this connection, Dragone hereby waives and releases any rights which she has and her successors, heirs, executives, administrators, may have directly or indirectly, if any, jointly or severally, directly or indirectly, under the provisions of California Civil Code section 1542, and any similar state or federal statute, which reads in sum, substance or substantial part as follows: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. Dragone acknowledges that the facts with respect to which each gives this general release may turn out to be different from the facts they now believe to be true. Dragone hereby assumes the risk of the facts turning out to be different, and agree that the above release shall in Dmgone Settlement 06 05 06 -2- s:+ all respects be effective and not subject to termination or rescission because of any such difference in facts. 5. REPRESENTATIONS AND WARRANTIES Each of the parties to this Agreement represent and warrant and agree with each other party as follows: 5.1 Advice of Counsel: Each party has received, or has had the opportunity to receive, independent legal advice from its attomey(s) with respect to the advisability of making the settlement and releases provided herein, with respect to the advisability of executing this Agreement, and with respect to the meaning of California Civil Code section 1542. 5.2 No Fraud in Inducement: No party (nor any officer, agent, employee, representative, or attorney of or for any party) has made any statement or representation or failed to make any statement or representation to any other party regarding any fact relied upon in entering into this Agreement, and neither party relies upon any statement, representation, omission or promise of any other party (or of any officer, agent, Dragone, representative, or attorney of or for any party) in executing this Agreement, or in making the settlement provided for herein, except as expressly stated in this Agreement. 5.3 Independent Investigation: Each party to this Agreement has made such investigation of the facts pertaining to this severance and settlement and this Agreement and all the matters pertaining thereto as it deems necessary. 5.4 Comprehension and Authority: Each party or responsible officer thereof has read this AGREEMENT and understands the contents hereof and warrants that he or she is authorized to execute the Agreement. 5.5 Mistake Waived: In entering into this Agreement and the severance and settlement provided for herein, each party assumes the risk of any misrepresentation, concealment or mistake. If any party should subsequently discover that any fact relied upon by it in entering into this Agreement was untrue, or that any fact was concealed from it, or that its understanding of the facts or of the law was incorrect, such party shall not be entitled to rescind or set aside the Agreement. This Agreement is intended to be and is final and binding between the parties, regardless of any claims of misrepresentation, promise made without the intent to perform, concealment of fact, mistake of fact or law, or any other circumstance whatsoever. 5.6 Later Discovery: Dragone and the City are aware that they may hereafter discover claims or facts in addition to or different from those they now know or believe to be true with respect to the matters related herein. Nevertheless, it is both parties intention to fully, finally and forever settle the Dispute and all claims relative thereto, which do now exist, may exist or have previously existed between both parties. 5.7 Ownership of Claims: Dragone represents and warrants as a material term of this Agreement that she is the sole owners of the Property and that she have not heretofore assigned, transferred, released or granted, or purported to assign, transfer, release or grant, any of Dragone Settlement 06 05 06 -3- 3627.., the Claims disposed of by this Agreement. In executing this Agreement, Dragone further represents and warrants that none of the Claims released by her hereunder will in the future be assigned, conveyed, or transferred in any fashion to any other person and /or entity. 5.8 Future Cooperation: The parties will execute all such further and additional documents as shall be reasonable or necessary to carry out the provisions of this AGREEMENT. 6. MISCELLANEOUS 6.1 No Admission: Nothing contained herein shall be construed as an admission by the parties of any liability of any kind. The parties each deny any liability in connection with any claim or wrongdoing. Each party also intend hereby solely to amicably resolve all matters between the parties. 6.2 Governing Law: This Agreement and the rights and obligations of the parties shall be construed and enforced in accordance with, and governed by, the laws of the State of California. The venue for any legal action relating to this Agreement shall be the Los Angeles County Superior Court. 6.3 Full Inte age tion: This Agreement is the entire Agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written Agreements and discussions. This AGREEMENT may be amended only by a further Agreement in writing, signed by the parties hereto. 6.4 Continuing Benefit: This Agreement is binding upon and shall inure to the benefit of the parties hereto, their respective successors, assigns, agents, employees, representatives, officers, and officials. 6.5 Joint Drafting: Each party has cooperated in the drafting and preparation of this Agreement. Hence, in any construction to be made of this Agreement, the same shall not be construed against any party. 6.6 Severability: In the event that any term, covenant, condition, provision or Agreement contained in this Agreement is held to be invalid or void by any court of competent jurisdiction, the invalidity of any such term, covenant, condition, provision or Agreement shall in no way affect any other term, covenant, condition, provision or Agreement and the remainder of this Agreement shall still be in full force and effect. 6.7 Titles: The titles included in this Agreement are for reference only and are not part of the terms of this Agreement, nor do they in any way modify the terms of this Agreement. 6.8 Counterparts: This Agreement may be executed in counterparts, and by facsimile and when each party has signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, when taken together with other signed counterparts, shall constitute one Agreement, which shall be binding upon and effective as to all parties. Dragon Settlement 06 05 06 -4- 3627 'e-6 6.9 Executed Copy: All parties shall receive a fully executed copy of this Agreement. 6.10 Notice: Any and all notices given to any party under this Agreement shall be given as provided in this paragraph. All notices given to either party shall be made by certified or registered United States mail, or personal delivery, at the noticing party's discretion, and addressed to the parties as set forth below. Notices shall be deemed, for all purposes, to have been given on the date of personal service or three (3) consecutive calendar days following deposit of the same in the United States mail. As to DRAGONE: Kathy Dragone 922 Sheldon Street El Segundo, California 90245 As to the CITY: Attn: City Clerk City of El Segundo 250 Main Street El Segundo, California 90245 WHEREFORE, the parties hereto have read all of the foregoing, understand the same, and agree to all of the provisions contained herein. DATED: S' ^1 — O CITY OF EL SEGUNDO DATED: am — / — 06 DRAGONE Dmgone Settlement 06 05 06 -5- 6627.,,, APPROVED AS TO FORM: Mark D. 14ensley, City Attorney Attest: By: 6 Cindy Mort en, City Clerk ( 02416 - doc.doc /sjm Dmgone Settlement 06 05 06 -6-