AvantStay, Inc, Daniel Callister, & LQ - 53055 Juarez - 2023 Settlement AgrmtSETTLEMENT AGREEMENT AND RELEASE
This Settlement Agreement and Release (hereinafter the "Agreement") is entered by and
between the CITY OF LA QUINTA, a California municipal corporation ("City"), AVANTSTAY,
INC. the short term rental agent ("Agent"), and DANIEL CALLISTER, the homeowner
("Callister") and is binding and effective as of the Effective Date (defined below). The City, the
Agent and Callister are referred to jointly hereinafter individually as a "Party" and collectively as
the "Parties." The Parties enter into this Agreement with reference to the following:
RECITALS
A. WHEREAS, on May 2, 2020, the City received a report that the property located at
53055 Avenida Juarez, La Quinta, California (the "Property") was potentially operating as a short-
term rental in violation of both the City's Executive Order Number 7 ("Executive Order No. 7")
and the La Quinta Municipal Code, section 3.25.050;
B. WHEREAS, the City reviewed the report and determined that Mr. Callister was in
violation of Executive Order No. 7 and the La Quinta Municipal Code, and the City subsequently
issued citations for fines totaling $6,500 as well as a Notice of Suspension suspending any use of
the Property as a short-term vacation rental for 365 days;
C. WHEREAS, after settlement discussions regarding the terms of agreement, the
Parties were able to come to a mutually agreeable agreement, as reflected in the terms herein; and
D. WHEREAS Agent and Callister represent that their relationship is not an agent -
principal relationship, and that Agent is a long term lessee pursuant to a separate agreement
between Callister and Agent. The use of the term "Agent" in this Agreement is for convenience
only and is not intended by anyone to identify, limit, expand, create, modify or alter in any way
whatever legal relationship that exists between Callister and Agent.
NOW THEREFORE, in consideration of the Recitals above, which are a substantive part
of this Agreement and incorporated by this reference, and the mutual covenants set forth herein,
the Parties agree as follows:
1. Obligations of the City. In consideration of the terms and conditions set forth in
this Agreement, and full compliance thereof by both Agent and Callister, the City agrees to the
following:
A. The City shall lift the suspension on the Property as of September 18, 2020.
B. The balance of the 365-day suspension will be stayed and held by the City through
May 11, 2021 (the "Abeyance Period"), pending no further violations occur on the Property during
the Abeyance Period.
C. Should there be a verified complaint about noise, amplified noise, over -occupancy,
non -response to the Short -Term Vacation Rental (STVR) Hotline, and/or other violation of
Chapter 3.25 or the La Quinta Municipal Code during the Abeyance Period, the abeyance of the
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suspension of the permit may be lifted. Any administrative appeal of the reinstatement of the
suspension shall be brought for hearing before the La Quinta City Manager pursuant to
Section 1(D) below.
D. In the event the City of La Quinta determines that there has been a violation during
the Abeyance Period such that the abeyance is to be lifted, the reinstatement of the suspension
shall be postponed upon the request of the Agent, who shall, on the first business day following
such request for postponement, submit to the La Quinta City Clerk's Office, for eventual review
and consideration by the City Manager as an administrative appeal, the reason(s) why the Agent
disputes the reinstatement of the suspension. The City Manager shall schedule a hearing on the
administrative appeal using the process set forth in La Quinta Municipal Code section 2.08.180 as
promptly as possible, and no later than 10 days after the submission by the Agent (unless the City
Manager requires a longer time period for such hearing). The decision of the City Manager shall
be binding and the final decision by the City on any such administrative appeal, such that no
subsequent administrative appeal to the La Quinta City Council or any other City board or
commission may be taken by either the Agent or Callister. The City Manager shall have the
discretion to confirm or overrule the lifting of the abeyance, or impose any lesser sanction that he
or she deems appropriate based on all the circumstances presented.
E. The City has or shall take off -calendar the administrative appeals relating to the
Property for the citations and suspension referenced above that occurred prior to the Effective
Date.
2. Obligations of Agent and Callister. In consideration of the terms and conditions
set forth in this Agreement, and full compliance thereof by the City, the Agent and Callister agree
to the following:
A. Agent and Callister, jointly and severally, agree to pay all outstanding fines related to the
violation detailed herein, totaling $6,500.00, which the City hereby acknowledges has been
paid in full.
B. Agent and Callister hereby provide full waivers and releases of any and all claims and
disputes against the City relating to the violations referenced in the Recitals above resulting
in the citations and suspension, including a waiver and release of any administrative
appeals and a waiver and release of any and all claims and disputes that may be adjudicated
in any state or federal court, agency, or other dispute resolution tribunal.
C. The Agent shall periodically contact the City in at least sixty day time increments from and
after the Effective Date, to confer with the appropriate staff to make sure that there are no
specific concerns or issues concerning the use of the Property. This obligation shall be in
place until the end of the Abeyance Period unless the abeyance is earlier lifted by the City
Manager. Any violation of this requirement shall not result in the lifting of the abeyance
or monetary fine. This requirement is intended to foster good communications with the
City concerning the use of the Property pursuant to the City's STVR requirements.
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3. No Admission of Fault.
Upon full performance by the Parties to this Agreement of their respective obligations set
forth in Sections 1 and 2 above, this Agreement is intended to be and is a compromise between the
Parties, and nothing in this Agreement shall be interpreted, used, or construed as an admission of
fault or wrongful conduct of any kind by any of the Parties.
4. Release.
a. Full and General Release. In consideration for the agreements as set forth
herein, and except for the administrative appeals and respective rights of the Parties expressly
retained under this Agreement, the Agent, Callister and City, on behalf of themselves and their
respective successors, assigns, officials, directors, officers, employees, insurers, lenders, lien
holders, attorneys, agents, and other representatives, do hereby release the other Parties from any
and all claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of duty,
claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses, including
attorney's fees, of any nature whatsoever, known or unknown, fixed or contingent as of the date
of execution of this Agreement relating to the use of the Property as a STVR prior to and during
the Abeyance Period (the "Release"). The Release expressly does not include, and nothing in this
Agreement does or shall be deemed as, a release by the City of any claims, actions and causes of
action, obligations, liabilities, indebtedness, breaches of duty, claims for injunctive and other
equitable relief, suits, liens, losses, costs or expenses, against either the Agent or Callister, or both,
relating to any alleged or actual violation(s) (including a citation(s) and/or suspension(s)) that
(i) do not involve the Property, (ii) involve a use(s) of the Property other than as a STVR, and/or
(iii) occur after the end of the Abeyance Period (or earlier termination of the Abeyance Period as
may be determined by the City Manager).
b. Waiver of Civil Code Section 1542: By releasing and forever discharging
claims both known and unknown as above provided, the Parties expressly waive any rights under
California Civil Code section 1542, which provides:
"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."
Except for the administrative appeals and respective rights of the Parties expressly retained under
this Agreement, the Agent, Callister and City waive and relinquish any rights and benefits that
they have or may have under section 1542 of the Civil Code of the State of California. The Agent,
Callister and City have performed a full and complete investigation of the facts pertaining to this
Agreement, and the Agent, Callister and City acknowledge and agree that they are aware that they
may hereafter discover facts in addition to or different from those which they now know or believe
to be true with respect to the subject matter of the Release, but it is their intention hereby to fully
and finally forever settle and release any and all matters, disputes and differences, known or
unknown, suspected and unsuspected, which now exist, may exist or heretofore have existed, as
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against each other, relating to the use of the Property as a STVR prior to and during the Abeyance
Period.
5. Effective Date of Agreement.
This Agreement shall be binding and effective as of the latest date on the signature page of
this Agreement, which date shall be the "Effective Date" of this Agreement.
6. Entire Agreement.
This Agreement form the entire agreement of the Parties and supersedes any and all prior
agreements or understandings, if any, between them pertaining to the subject matter hereof, and
shall not be modified or altered except by a subsequent written agreement signed pursuant to
Section 13 below. This Agreement shall be binding upon and shall inure to the benefit of the
Parties, their respective successors, assigns, officials, directors, officers, employees, insurers,
lenders, lien holders, attorneys, agents, and other representatives.
7. Representations and Warranties.
The Agent and Callister, jointly and severally, hereby expressly represent and warrant that
they have not transferred or assigned or attempted to transfer or assign any of the released claims
that are subject to this Agreement. No claim of subrogation may be brought against the City under
any of the other released claims, and the Agent and Callister expressly agree to waive any
subrogation rights against the City related to any of the released claims. The persons signing this
Agreement hereby represent and warrant that they have the power and authority to bind any Party
on whose behalf this Agreement is signed. The Agent and Callister acknowledges and agrees that
the City is materially relying upon the representations and warranties of the Agent and Callister
set forth in this Agreement. If any of the Agent's or Callister's representations and warranties as
set forth herein are found to be untrue or inaccurate either at the signing of this Agreement or with
the passage of time, or both, then such untrue or inaccurate representation and warranty shall be a
material default and the basis for a breach of this Agreement.
8. Controlling Law.
This Agreement shall be interpreted and construed in accordance with the laws of the State
of California without regard to conflict of law principles.
9. Attorneys' Fees and Costs.
The Parties shall bear all of their own respective costs and attorneys' fees incurred relating
to this Agreement. In the event that a Party is required to initiate or defend any litigation relating
to or arising out of this Agreement, the prevailing Party shall be entitled to recover from the other
Party(ies) its reasonable attorneys' fees in addition to any costs to which such prevailing Party
shall be entitled to recover pursuant to applicable law.
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10. Severability
If any provision or part of this Agreement is held, determined, or adjudicated to be invalid,
unenforceable or void for any reason, each such provision shall be severed from the remaining
provisions of the Agreement and shall not affect the validity and enforceability of such remaining
provisions.
11. Review of Agreement.
The Parties each acknowledge and represent that they have read this Agreement, that they
have had the opportunity to consult with their respective attorneys concerning its contents, that the
Agreement is being executed solely in reliance on their respective judgment, belief, and knowledge
of the matters set forth herein and on the advice of their respective attorneys (if any), and that they
enter this Agreement freely and voluntarily.
12. Neutral Interpretation.
The Parties agree that all parts of this Agreement shall in all cases be construed as a whole
according to their fair meaning and shall not be construed strictly for or against any Party hereto.
13. Modification.
This Agreement shall not be modified, amended or supplemented unless such
modifications, amendments or supplements are in writing and signed by the Party to be charged.
14. Counterparts.
This Agreement may be executed in counterparts and by facsimile or other electronic
delivery, each of which shall be deemed an original and all of which together shall constitute one
and the same instrument.
[signatures on next page]
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IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth
below.
Date: September , 2020 "AGENT" AVANTSTAY, INC.
By: SIGNED IN COUNTERPART
Its:
Title:
Date: September , 2020 "CALLISTER"
Date: September L , 2020
ATTEST:
Monika Radeva
City Clerk
APPROVED AS TO FORM
By: Al. gi;4•.--e—
William H. Ihrke
City Attorney
By: SIGNED IN COUNTERPART
Print Name:
Owner of Property/Holder of STVR Permit
CITY OF LA QUINTA
By: Jon McMille
It ' ■ anager
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IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth
below.
Date: September
Date: September
Date: September
ATTEST:
, 2020 "AGENT" AVANTSTAY, INC.
By: i
Its:
Title:
, 2020 "CALLISTER"
By:
Print Name:
Owner of Property/Holder of STVR Permit
, 2020 CITY OF LA QUINTA
Monika Radeva
City Clerk
APPROVED AS TO FORM
By:
William H. Ihrke
City Attorney
By: Jon McMillen
Its: City Manager
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IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth
below.
Date: September , 2020 "AGENT" AVANTSTAY, INC.
Date: September , 2020
Date: September , 2020
ATTEST:
Monika Radeva
City Clerk
APPROVED AS TO FORM
By:
William H. Ihrke
City Attorney
By:
Its:
Title:
"CALT JSTER"
By: q
Print Name: ))f W1(L. c_ 14
Owner of Property/Holder of STVR Permit
CITY OF LA QUINTA
By: Jon McMillen
Its: City Manager
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