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Home My WebLink About1990-02-13; Housing & Redevelopment Commission; 150; Settlement of Sahagun et al. v. City at al.. . PM& nuuaIm&U ANU Ir-~rVeiopMENTcs~Ml3Sl-'3 - AGENDA BlLL 0 Bz AN 150 Mm, 2/13/90 TtTte SETTLEMENT OF SAHAGUN ET AL. V. CITY AT AL., N43834 DUPT, l4D.Z CITY Am@- CITY lulGR.rn IWCOMMENP~D ACHON: That the Housing and Redevelopment Commission approve settlement of this case and appropriate the necessary funds by adopting Resolution No. 163 . ITEM EXPLANATION Special redevelopment litigation counsel has negotiated an agreement with representatives of Legal Aid and the individual plaintiffs in the above referenced litigation and recommends approval of the attached Settlement Agreement and Release. The agreement resolves all differences between the parties arising out of the litigation. Nothing in the agreement constitutes a representation by either side on the merits of the case. Neither party claims victory and all parties have agreed that the agreement speaks for itself. If the Commission concurs, your action is to adopt Resolution No. 163 approving the agreement and authorizing the expenditure of the necessary funds from the Redevelopment unappropriated fund balance. FISCAL IMPACT There are sufficient funds in the Redevelopment unappropriated fund balance account to cover the settlement. EXHIBITS Resolution No. 163 Settlement Agreement and Release ,-. . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ~ HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 163 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA AUTHORIZING THE EXPENDITURE OF FUNDS FOR SETTLEMENT OF THE LAWSUIT SAHAGUN V. CITY, WHEREAS, on recommendation by special Redevelopment counsel the Housing and Redevelopment Commission of the City of Carlsbad, California has determined to approve the Settlement Agreement and Release in the case entitled Sahaaun et al. v. Citv et al., Case No. N43834; and WHEREAS, there are sufficient funds available in the unappropriated fund balance to pay the settlement, NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Commission of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the Chairman is authorized to sign the Settlement Agreement and Release which is hereby approved. 3. That the amount of $50,000 is hereby appropriated from the Redevelopment fund unappropriated fund balance to the Redevelopment Department professional services account 810-820- 3410-2479. . . . . . . . . . . . . . . . . . . /I 1 PASSED, APPROVED AND ADOPTED at a special meeting of the Housing and Redevelopment Commission of the City of Carlsbad, held 2 on the 13th day of February I 1990, by the following vote, 3 to wit: 4 AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES: None 6 ABSENT: None 7 ABSTAIN: None 11 ATTEST: 15 (SEAL) 16 Ii (SEAL) 17 18 19 I 20 21 22 23 24 25 26 27 28 2 . . .; \. .- SETTLEMENT AGREEMENT AND RELEASE This Agreement is entered into by and between the follow- ing persons and entities (collectively the "parties"): IEIYRNA ALICIA SAHAGUN, NOISES SAEIAGUN, RICHARD ID. PORADOSKY, JOHN H. LYNCH, DIANE EVANS, AND WELFARE RIGHTS ORGANIZATION OF SAN DIEGO [collectively "Plaintiffs.), and CITY OF CARLSBAD, CITY COUNCIL OF THE CITY OF CARLSBAD, AND CARLSBAD HOUSING AND REDEVELOPMENT COWWISSION (collectively 'Defendants"), This Agreement settles all issues raised in Sahagun, et al. v. City of Carlsbad, et al., Case No. 43834, San Diego Superior Court. The Defendants have provided Plaintiffs with the financial documents attached as Schedules I A-D, II, III A-B, IV A-D, and V. In reliance on the data and information in these documents as evidence of Defendants' ability to comply with this Agreement and with the law, in consideration of the provisions set forth herein and in settlement of the foregoing issues, the parties agree as follows: 1. Defendants shall continue to: (1) Deposit into the Low and Moderate Income Housing Fund (the "Housing Fund"), no less than 20% of the annual taxes allocated to the Agency pursuant to Health & Safety Code $ 33670, as amended, excluding taxes allocated to other taxing agencies pursuant to Health & Safety Code 5 33676, as amended, or (2) Otherwise comply with Health & Safety Code S 33334.2, from Fiscal Year 1989-90 through the duration of the Village Area Redevelopment Plan. 2. Defendants shall not count as meeting its obligations under Health & Safety Code S 33334.2 any monies used for Page 1 of 7 SahagSAR 43834 repayment of the 1988 Carlsbad Housing and Redevelopment, Village Redevelopment Project Area, Tax Allocation Bonds, Series A (the "Bonds"), or to maintain any accounts, including the reserve account, required to be maintained by the Trust Indenture dated April 1, 1988, and Final Official Statement dated April 26, 1988, to the extent that the Bond proceeds are used to pay for any of the following: a. Construction of streetscape and storm drain improve- ments to Carlsbad Village Drive (formerly Elm Avenue) and Carlsbad Boulevard; b. Public parking projects; c. The bluff-top sidewalk improvement project; d. The Senior Citizens' Center and/or Carlsbad Unified District Administrative Office building. 3. This Agreement will not prevent Defendants from expending Bond proceeds to increase and improve the community's supply of affordable housing in compliance with Community Redevelopment Law. Any such expenditures must meet all of the provisions of the Community Redevelopment Law, including the requirements of S;§ 33334.2, 33334.3, and 33413 of the Health & Safety Code, as amended. If the Housing Fund is used pursuant to Health & Safety Code S 33334.2(e)(2), as amended, then the Commission shall comply with Health & Safety Code S 33080.4(f), as amended. 4. If, for any reason, monies from the Housing Fund or taxes allocated to the Agency which are required to be deposi- ted in the Housing Fund are used to fulfil1 any obligat- ions or fund any accounts or reserves required by the Bonds, which are attributable to any of the projects listed in Paragraph 2 above, or to any other projects for which the Housing Fund cannot be used under the Community Page 2 of 7 SahagSAR 43834 : *. Redevelopment Law, the Agency shall reimburse the Housing Fund, plus interest thereon at the legal rate, at the earliest possible time. 5. Each individually named Plaintiff shall have first priority to rent or purchase an appropriately-sized housing unit within his/her income category as defined in Paragraph 7, for which (s)he qualifies in housing developed or assisted by the Agency with the Housing Fund. This priority shall apply to the first housing project developed with the Housing Fund wh.ich contains housing units for which the individual Plaintiffs qualify under lawful qualifications set by the Agency. Each individual Plaintiff shall exercise his right to a first priority by submitting to the Agency a written application, for renting or purchasing the housing unit in question, within twenty (20) days of receipt of written notice, as evidenced by a return receipt, to Catherine A. Rodman at the address set forth in Paragraph 6 hereto, that the Agency or other developer is prepared to enter into a rental or purchase agreement for the applicable housing unit. A Plaintiff shall exercise his/her rights hereunder for occupancy of the housing unit and not for speculation. The rights hereunder are personal to each Plaintiff and may not be transferred or inherited. A Plaintiff's rights under this paragraph shall automatically terminate if: (1) he/she fails to timely submit a completed application for a housing unit made available by the Agency; or (2) he/she fails to enter into a written rental or purchase agreement on terms substantially comparable to those offered others in the housing project within ten (10) days after receiving the rental or purchase agreement: or (3) he/she timely enters into such a written rental or purchase agreement in which case the rights of the parties shall be governed by that agreement. Any breach of this paragraph is enforceable by equitable relief only. Page 3 of 7 SahagSAR 43834 6. Defendants shall make a good faith effort to provide Catherine A. Rodman of the Legal Aid Society of San Diego, Inc., 216 South Tremont Street, Oceanside, CA 92054, with the following: a. Copies of the Annual Report required by Health & Safety Code S 33080 et seq., and all other notices, reports and resolutions required by the Community Redevelopment Law, showing the status and use of the Housing Fund; and b. All City Council and Commission agenda and agenda bills. These writings shall be sent to Legal Aid Society of San Diego, Inc. by at the time they are made available to the City Council or Commission, or to the public, whichever occurs first. All non-privileged supporting documents and other writings regarding the status or use of the Housing Fund shall be provided promptly at the request of counsel for Plaintiffs. These special notice require- ments shall be in effect for a period of two (2) years from the execution of this Agreement. Thereafter, Plaintiffs shall be entitled to the same rights of access to the notices and writings as the general public. 7. This Agreement shall be enforceable by Plaintiffs and any other similarly situated individual, i.e., a very low income (as defined by Health & Safety Code 5 50105 or its successor), or a low income (as defined by Health & Safety Code S 50079.5, or its successor), actual or potential resident of the City who would be eligible to occupy the housing required to be provided by Defendant's pursuant to Health & Safety Code S 33334.2, as amended. 8. This Agreement resolves all differences between the parties arising out of this litigation. Nothing in this Agreement constitutes a representation, acknowledgment, Page 4 of 7 SahagSAR 43834 or admission by either party regarding the merits of any issue arising out of or related to this lawsuit. Neither party claims victory in this dispute, and both parties agree that this Agreement speaks for itself. By execut- ion of this Settlement Agreement, Plaintiffs release, waive, and forever discharge Defendants from any and all claims raised in this action, or which could have been raised in this action, except as specifically provided in this Settlement Agreement. Defendants release, waive, and forever discharge Plaintiffs from any and all claims which they may have against them in connection with this action. It is understood that Section 1542 of the California Civil Code provides 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 execut- ing the release, which if known by him must have materially affected his settlement with the debtor. The provisions of California Civil Code S 1542 are hereby waived by all parties, except as applied to the financial condition of the Commission and Housing Fund as represen- ted in the attached Schedules. 9. Following the execution of this Agreement, Plaintiffs shall file a Request for Dismissal of the Complaint, With Prejudice, with the Court. Within ten (10) days of the entry of dismissal of the Complaint, the City of Carlsbad shall pay attorney's fees and costs in the amount of $50,000.00 to Legal Aid Society of San Diego, Inc. and Jonathan Lehrer-Graiwer. 10. This Agreement shall be governed by the laws of the State of California and shall be enforceable in its Courts by an action in law or equity. If any action is brought to enforce or interpret the provisions of this agreement, the prevailing party shall be entitled to Court costs and Page 5 of 7 SahagSAR 43834 ,. . 11. reasonable attorney's fees to the extent provided by California law, in addition to any other relief to which they may be entitled. The parties to this Agreement warrant that they have read and understood this Agreement and have voluntarily executed the same. The mutual obligations and under- takings of the parties expressly set forth in this Agreement are the sole consideration of this Agreement and no representations, promises, or inducements of any nature whatsoever have been made by any party to this Agreement other than as appear in this Agreement. This Agreement may be signed in counterparts. 12. All notices to be delivered pursuant to the terms of this Settlement Agreement shall be in writing and shall be delivered either in person or by U.S. mail, or some other delivery service, verifying delivery of the notice to the address listed below for the respective parties. Counsel for Plaintiffs: . CATHERINE A. RODMAN LEGAL AID SOCIETY OF SAN DIEGO, INC. 216 SOUTH TREMONT STREET OCEANSIDE, CA 92054 Counsel for Defendants: VINCENT F. BIONDO, JR. CITY ATTORNEY CITY OF CARLSBAD 1200 CARLSBAD VILLAGE DRIVE CARLSBAD, CA 92008-1989 Any of the foregoing addresses may be changed by written notice in accordance with this paragraph. Page 6 of 7 SahagSAR 43834 - . 8’ 3 t. Notice shall be deemed effective upon the date of actual receipt as evidence by personal acknowledgment, return receipt, or other comparable means. , DIANE EVANS/DATE LEG mAID SOCIETT 01 SAN DIEGO, INC. 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