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Barber, Camille - 80265 Cedar Crest - 2024 Settlement Agrmt & STVR 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") and CAMILLE BARBER, and individual ("Barber") and is binding and effective as of the Effective Date (defined below). The City and Barber 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, Barber is the owner of certain residential property located at 80265 Cedar Crest, La Quinta, California (the "Property"); and B. WHEREAS, Chapter 3.25 of the La Quinta Municipal Code (the "STVR Regulations") requires the owner of any residential property, including Barber as the owner of the Property, that is used as a short-term vacation rental ("STVR") to obtain a short term vacation rental permit ("STVR Permit") from the City; furthermore, if any residential property has applied for and received a STVR Permit, the residential property must comply with, among other applicable laws, the STVR Regulations for use and operation of the property as a STVR; furthermore, if any residential property has a STVR Permit, it may be suspended or revoked, in accordance with the STVR Regulations, if there is a violation of the STVR Regulations while holding a STVR Permit; and C. WHEREAS, the City, through its Code Enforcement Office, investigated and determined that there was a violation of the STVR Regulations at the Property, on more than one separate occasions; and D. WHEREAS, as a result of the City's investigations under Code Compliance Case No. 23-0531, the City issued two (2) Administrative Citations, specifically identified as Citation Nos. LQ200401 and LQ200464 (collectively, the "Citations"). Barber submitted separate administrative appeals pursuant to the La Quinta Municipal Code ("LQMC") for the Citations, which were decided separately by an administrative hearing officer (collectively, the "Administrative Hearings"). Barber filed separately, in the Riverside County Superior Court pursuant to applicable rules, judicial appeals of the hearing officers' decisions on the Administrative Hearings, which were assigned the following case numbers: Riverside County Superior Court Case Nos. CVPS2303039 and CVPS2303950 (the "Superior Court Cases"), which were decided separately. City filed, in the Riverside County Superior Court Appellate Division, pursuant to applicable rules, an appeal of Superior Court Case No. CVPS2303039, which was assigned Appellate Division Case APRI No. 2300108 (the "Appellate Division Case"). Collectively, the Citations, Administrative Hearings, Superior Court Cases, and Appellate Division Case are referred to as the "Barber Cases"; and E. WHEREAS, the disputes that arose in the Barber Cases, in general, resulted from, on the one hand, the City's position that Barber did not have a valid STVR Permit (among another required license) while operating a STVR on the Property, and, on the other hand, Barber's position that she had written leases for the Property for 31 days or more and thereby removed the Property from the STVR Regulations (and permitting requirements therein) notwithstanding any actual use 698/015610-0199 20001462.5 a02/05/24 -1- or occupancy periods of persons on the Property (referred to as the "Written Lease Argument"); and F. WHEREAS, as of the date of this Agreement: (i) Barber had paid (subject to appeal rights) all amounts owed to the City from the Citations, (ii) City had refunded to Ms. Barber the amount of $4,100, sent November 9, 2023, as a refund per the Court's order in Riverside County Superior Court Case No. CVPS2303039, and (iii) City has the amount of $3,100 prepared to refund to Barber based upon the "second offense" violation (as set forth in Section 3.25.090 of the STVR Regulations in effect at the time of the violation) being reduced to "first offense" violations attached to Citation No. LQ200464; and G. WHEREAS, the Parties have engaged in good faith settlement negotiations, such that Barber agreed not to pursue an Appellate Division Appeal of Superior Court Case No. CVPS2303950, and City agreed not to pursue its Appellate Division Case, so that a global settlement may be reached for the Barber Cases, as more particularly set forth herein. 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. Settlement Terms In consideration of the terms and conditions set forth in this Agreement, the Parties agree as follows: a) Concurrently with Barber's delivery to City of this executed Agreement, Barber shall deliver to City a countersigned copy of the "Agreement Relating to Short -Term Vacation Rental Usage" in the form attached to this Agreement as Exhibit A and incorporated herein by reference; b) Within fifteen (15) days of full execution of this Agreement and delivery of same to City, City shall deliver to Barber via refund check the amount of $3,100 (the "Refund Payment"); c) Within five (5) days of City's delivery to Barber of the Refund Payment, the Parties shall dismiss their respective pending Superior Court Cases and Appellate Division Case; d) Barber shall deliver to City any and all requested information and documents, such as Barber's W-9 issued by the Internal Revenue Service, necessary or proper for facilitating the implementation of this Agreement. 2. No Admission of Fault Upon full performance by the Parties to this Agreement of their respective obligations set forth above, this Agreement is intended to be and is a compromise between the Parties for the Barber Cases, and nothing in this Agreement shall be interpreted, used, or construed as an 698/015610-0199 20001462.5 a02/05/24 -2- admission of fault or wrongful conduct of any kind by any of the Parties. All such liability and wrongdoing alleged against one Party is denied by the other Party. 3. Release a. Full and General Release. In consideration for the agreements as set forth herein, and except for the respective rights of the Parties expressly retained under this Agreement and the Agreement Relating to Short -Term Vacation Rental Usage, Barber 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 Party 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 Barber Cases (the "Release"). The Release expressly does not include, and nothing in this Agreement does or shall be deemed as, a release 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 or both, not arising under the operative facts of the Barber Cases; in further explanation of the preceding sentence, the Release does not include any future violations or alleged violations on or after the Effective Date of this Agreement for violations at the Property of the City's STVR Regulations, including any future violations or alleged violations at the Property that are alleged to involve a written rental/lease agreement for 31 days or more. b. Civil Code Section 1542: By releasing and forever discharging claims both known and unknown as above provided in the Release, 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 and the Agreement Related to Short -Term Vacation Rental Usage, Barber 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 with respect to the Barber Cases. Barber and City have performed a full and complete investigation of the facts pertaining to this Agreement, and Barber 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 against each other, relating to the Barber Cases. 698/015610-0199 20001462.5 a02/05/24 -3- 4. Effective Date of Agreement This Agreement shall be binding and deemed effective as of the later date of signature for the respective Parties, which date shall be the "Effective Date" of this Agreement. 5. Entire Agreement This Agreement forms the entire agreement of the Parties relating to the subject matter herein and supersedes any and all prior agreements or understandings relating thereto, if any, between them pertaining to the subject matter herein, and shall not be modified or altered except by a subsequent written agreement signed pursuant to Section 12 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. 6. Representations and Warranties Barber hereby expressly represents and warrants that it has not transferred or assigned or attempted to transfer or assign any of the released claims that are subject to this Agreement and are included in the Release. No claim of subrogation may be brought against the City under any of the other released claims, and Barber expressly agrees 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. Barber acknowledges and agrees that the City is materially relying upon the representations and warranties of Barber set forth in this Agreement, and only those set forth specifically in this Agreement. If any of Barber's representations and warranties made 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. 7. 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. 8. 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 its reasonable attorneys' fees in addition to any costs to which such prevailing Party shall be entitled to recover pursuant to applicable law. 9. 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 698/015610-0199 20001462.5 a02/05/24 -4- provisions of the Agreement and shall not affect the validity and enforceability of such remaining provisions. 10. 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. 11. 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. 12. 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. 13. Counterparts This Agreement may be executed in counterparts and by facsimile, electronic mail or other electronic delivery, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 698/015610-0199 20001462.5 a02/05/24 [signatures appear on next page] -5- IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth below. Date: _ ce. b (p , 2024 Date: ATTEST (for City): CAMILLE BARBER, an individual By le Barber , 2024 CITY OF LA QUINTA, a California municipal corporation SIGNED IN COUNTERPART Monika Radeva City Clerk APPROVED AS TO FORM (for City) By: SIGNED IN COUNTERPART William H. Ihrke City Attorney Rutan & Tucker, LLP 69Ii 01561042199 202111462.5 '6022 115/24 SIGNED IN COUNTERPART -6- By: Jon McMillen Its: City Manager IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth below. Date: , 2024 CAMILLE BARBER, an individual SIGNED IN COUNTERPART Date: By: Camille Barber _024 CITY OF LA QUINTA, a California municipal corporation By: ATTEST (for City): Monika Radeva City Clerk APPROVED AS TO FORM (for City) By: William H. Ihrke City Attorney Rutan & Tucker, LLP 698/015610-0199 200014625 a02/05/24 -6- ts: City Manager 698/015610-0199 20001462.5 a02/05/24 EXHIBIT A Agreement Relating to Short -Term Vacation Rental Usage (attached) Exhibit A AGREEMENT RELATING TO SHORT-TERM VACATION RENTAL USAGE This Agreement Relating to Short -Term Vacation Rental Usage (hereinafter the "Agreement") is entered by and between the CITY OF LA QUINTA, a California municipal corporation ("City") and CAMILLE BARBER, and individual ("Barber") and is binding and effective as of February 7 , 2024 ("Effective Date"). The City and Barber 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, Barber is the owner of certain residential property located at 80265 Cedar Crest, La Quinta, California (the "Property"); and B. WHEREAS, Chapter 3.25 of the La Quinta Municipal Code (the "STVR Regulations") requires the owner of any residential property that is used as a short-term vacation rental ("STVR") to obtain a short term vacation rental permit ("STVR Permit") from the City; furthermore, if any residential property has applied for and received a STVR Permit, the residential property must comply with, among other applicable laws, the STVR Regulations for use and operation of the property as a STVR; furthermore, if any residential property has a STVR Permit, it may be suspended or revoked, in accordance with the STVR Regulations, if there is a violation of the STVR Regulations while holding a STVR Permit; and C. WHEREAS, the City, through its Code Enforcement Office, investigated and determined that there was a violation of the STVR Regulations at the Property, on more than one separate occasions; and D. WHEREAS, the Parties entered into that certain Settlement Agreement and Release of or about even date as this Agreement (the "Settlement Agreement"), which, among other terms and conditions, settled specified judicial disputes between the Parties that were based, in general, on the following: On the one hand, the City taking the position that Barber did not have a valid STVR Permit (among another required license) while operating a STVR on the Property, and, on the other hand, Barber taking the position that she had written leases for the Property for 31 days or more and thereby removed the Property from the STVR Regulations (and permitting requirements therein) notwithstanding any actual use or occupancy periods of persons on the Property (referred to hereafter as the "Written Lease Argument"); and E. WHEREAS, in accordance with the Settlement Agreement, the Parties have entered into this Agreement to memorialize that the Property, and any other residential property in the City of La Quinta that Barber may own now or in the future, shall comply with the STVR Regulations, as more particularly set forth herein. 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: 698/015610-0199 20001462.5 a02/05/24 -1- 1. The Property, and any and all "dwellings" (as defined in the STVR Regulations) within the City that Barber owns, controls, manages, or otherwise uses (collectively, "Barber's Residential Properties") as a STVR falling within the definition of "short-term vacation rental unit" in the STVR Regulations shall not be used or operated, or allowed or advertised to be used or operated, as a STVR without a validly issued STVR Permit. 2. Notwithstanding the Written Lease Argument, none of Barber's Residential Properties shall be used as a STVR without a valid STVR Permit. 3. This Agreement may be executed in counterparts and by facsimile, electronic mail or other electronic delivery, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 698/015610-0199 20001462.5 a02/05/24 [signatures appear on next page] -2- IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth below. Date: 1'e b 1 , 2024 Date: ATTEST (for City): CAM1 BA' B By: ' c Barber R, an ' divid al , 2024 CITY OF LA QUINTA, a California municipal corporation SIGNED IN COUNTERPART Monika Radeva City Clerk APPROVED AS TO FORM (for City) By: SIGNED IN COUNTERPART William H. Ihrkc City Attorney Rutan & Tucker, LLP 698 015610-0199 20011462 5 o02 05/24 SIGNED IN COUNTERPART By: Jon McMillen Its: City Manager -3- IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth below. Date: , 2024 CAMILLE BARBER, an individual SIGNED IN COUNTERPART Date: By: Camille Barber 7.2024 CITY OF LA QUINTA, a California municipal corporation ATTEST (for City). Monika Radeva City Clerk APPROVED AS TO FORM (for City) By: William H. Ihrke City Attorney Rutan & Tucker, LLP B cMillen Its: City Manager 698/015610-0199 20001462.5 a02/05/24 -3-