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CONTRACT 3522 Settlement Agreement3522. When Recorded Mail to: 05 2705798 City Clerk City of El Segundo 350 Main Street City of El Segundo, California 90245 SETTLEMENT AGREEMENT 1. PARTIES This Settlement Agreement ( "Agreement ") is made and executed as o r 2005, by and between James and Ashley Savela (collectively "Savela ") and the City of Er Segundo ( "City "). 2. RECITALS 2.1 James and Ashley Savela are husband and wife. James Savela is the owner of the property described on exhibit A and commonly known as 124 W. Maple Avenue El Segundo, California ( "Property "). 2.2 On or about April 2004 Savela began the process of attempting to obtain a building permit for the construction of a second residential unit or accessory structure in rear yard portion of the Property( "Permit "). 2.3 The City contends that it is without authority to issue the Permit as it the Permit would allow the construction of a second dwelling unit on the Property and that the El Segundo Municipal Code does not allow a second dwelling unit to be constructed on the Property or an accessory structure with a height up to twenty -six feet high. Savela contends the City's building and planning supervisors originally stated that the Permit could be issued and that Savela had a legal right to construct the second dwelling unit on the Property pursuant to the City's interpretation of the El Segundo Municipal Code. Savela claims that based upon statements made by staff, Savela expended approximately $11,650.00 preparing documents and LA # 122891 v l -I- 3522 • :-s 05 2705798 gathering information in preparation for seeking the issuance of the Permit by the City. On March 22, 2005, Savela filed a claim with the City regarding this matter. 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 (a) Savela shall not be allowed to construct a second dwelling unit on the Property; (b) this Agreement shall be recorded against the Property and shall represent a covenant recorded against the Property restricting the Property such that only one residential dwelling unit may be maintained on the Property; except in the event that the City specifically adopts an Ordinance that permits a second dwelling unit to be constructed on the Property; (c) the City shall within 15 days of the execution of this Agreement deliver a check in the amount of $11,650 made payable to James and Ashley Savela; and, (d) the parties shall release whatever claims they have against each other, if any, arising out of the Dispute as set forth in Section 4 of the Agreement. 3.2 Savela and the City shall each bear their own attorney fees and costs incurred in connection with the Dispute and this Agreement. The City will issue a Internal Revenue Form 1099 income statement to Savela with respect to the $11,650 payment referenced above. Savela shall be responsible and liable for paying all federal, state and local taxes associated with the payment, including fines and penalties, if any, that may arise from the Savela's receipt of the payment. 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, Savela and City hereby, and for their respective heirs, representatives, successors, and assigns, release, acquits, and forever discharge the each other and all of their respective agents, officers, current and former elected and appointed officials, current and former employees, representatives, insurers, attorneys, 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, without regard to whether such arise under the federal, state or local constitutions, statutes, rules, ordinances or regulations, or the common law. In this connection, Savela and City each hereby waive and release any rights which they respectively have against the other and their successors, heirs, executives, administrators, may have directly or indirectly, if any, jointly or severally, directly or indirectly, LA #122891 v1 -2- 05 2705798 35 2 2. 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. Savela and the City acknowledge 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. Savela and the City hereby assume the risk of the facts turning out to be different, and agree that this Agreement and the above release shall in 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 had the opportunity to seek and receive independent legal advice from its attorney(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, Savela, 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 LA #122891 v1 -3- 6522 05 2705798 � 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: Savela 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 and release all such matters, and all claims relative thereto, which do now exist, may exist or have previously existed between both parties. In furtherance of such intention, the releases given here shall be and remain in effect as full and complete releases of all such matters, notwithstanding the discovery or existence of any additional or different claims or facts relative thereto. 5.7 Ownership of Claims: Savela represents and warrants as a material term of this Agreement that they are the sole owners of the Property and that they have not heretofore assigned, transferred, released or granted, or purported to assign, transfer, release or grant, any of the claims disposed of by this Agreement. In executing this Agreement, Savela 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 Integration: 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 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. LA # 122891 v 1 -4- 05 2705798 3522 , 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. 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 SAVELA: James Savela 124 W. Maple El Segundo, California As to the CITY: Attn: City Clerk City of El Segundo 250 Main Street El Segundo, California WHEREFORE, the parties hereto have read all of the foregoing, understand the same, and agree to all of the provisions contained herein. DATED: 4-- ;L;- -05 CITY OF EL SEGUNDO LA #122891 v1 -5- DATED: APPROVED AS TO FORM: ---I� By: Mark IJ. Hensley, City Attorney Attest: By: am Cindy M esen, City Clerk 02416- doc.doc /sjm LA #122891 v 3522. , w 05 2705798 SAVELA B Jame Savela By: Ashley Sa a I on 0 352 September 22, 2005 05 2 705798 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) On September 22, 2005, before Cathy Domann, Deputy City Clerk, personally appeared Kelly McDowell, Mayor of the City of El Segundo, personally known to me to be the person whose name is subscribed to on the within instrument, and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or entity upon behalf of which the persons acted, executed the instrument. Witness my hand and Official Seal Cathy Doma , Deputy City Clerk 3522 - CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT State of California 05 2705798 ss. County of �-ds On (— H 5 before me, Q ytc g., y e a rna h h Date Name and Title of Officer (e. "Jane Doe, Notary Public') personally appeared �OIYYIt°� (a.U'e kc'- Name(s) of Signer(s) L ] personally known to me Cproved to me on the basis of satisfactory evidence 16Ll" CATHY DOMANN Commwlon #t 1317879 Notary Public - CaMwft Lot Arg" County ,MV Comm. bo t Oct I, 2 Place Notary Seal Above to be the person(,&) whose name( is /axe subscribed to the within instrument and acknowledged to me that he /shoA-hey executed the same in his /refllthei authorized capacity(ies-), and that by his /heir signature(s) on the instrument the person(e), or the entity upon behalf of which the person( acted, executed the instrument. WIT ES$_ hand and official seal. r' Signature of Noy V Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document CIS Title or Type of Document: JL° ( �'� Ye,etmP t Document Date: li — Ili "dX5 Number of Pages: 6 Signer(s) Other Than Named Above: _CJ � r R U 12 to Capacity(ies) Claimed by Signer Signer's Name: CI Individual ❑ Corporate Officer — Title(s): Cl Partner — Ll Limited ❑ General ❑ Attorney in Fact ❑ Trustee 1-1 Guardian or Conservator CJ Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER Top of thumb here 0 1999 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 - Chatsworth, CA 91313 -2402 - www.nationatnotary.org Prod. No. 5907 Reorder: Call Toll -Free 1 -800- 876 -6817 (0 CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT State of California County of P'S On + (1-( _05 Date personally appeared 3522 05 2705798 ss. before me, me and Title of Officer (e.g., 'Jane Me, Notary Public ") Name(s) of ❑ personally known to me �1 proved to me on the basis of satisfactory evidence to be the persons) whose name(s) is /aFe subscribed to the within instrument and acknowledged to me that.l-4Q/she /tley executed UNDA CATHY DOMANN the same in l;ts /her /the4c authorized _ CommMion #F 1517879 capacity(iesj, and that by -his /her /them -- Notary Publicc - CoWomia signature(s} -on the instrument the personH, or UxAnpolmCounty the entity upon behalf of which the person(* M Comm. Expku Oct 4,2 acted, executed the instrument. WITN S my hand nd official seal. Place Notary Seal Above Signature of Not ry ublic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document 'e 'e Title or Type of Document: t' (/� N Document Date: 9-14-05 Number of Pages: b Signer(s) Other Than Named Above: M M)PS Capacity(ies) Claimed by Signer Signer's Name: Individual Top of thumb here L Corporate Officer — Title(s): L Partner — L Limited L General L Attorney in Fact L Trustee L Guardian or Conservator L Other: Signer Is Representing: 0 1999 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 - Chatsworth, CA 91313 -2402 - www.nationalnotary.org Prod. No. 5907 Reorder: Call Toll -Free 1 -800- 876 -6827 EXHIBIT "A" '522• • 05 2705798 Lot 2 of Tract No. 6968, in the City of El Segundo, County of Los Angeles, State of California, as per map recorded in Book 126, Page 87 of Maps in the office of the County Recorder of Los Angles County.