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2008/11/25 City Council Resolution 2008-183RESOLUTION NO. 2008 -183 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AUTHORIZING AND APPROVING A SETTLEMENT AGREEMENT WITH ROHNERT PARK DISPOSAL, INC. WHEREAS; the City of Rohnert Park ( "City ") and Rohnert Park Disposal, Inc. ( "RPDI ") entered into an Amended and Restated Agreement for Refuse, Recyclable Materials, Compostable Materials and Street Sweeping Service dated July 1, 2008 ( "Refuse Contract "), in which the City granted to RPDI a franchise for the collection of refuse, recyclable materials and compostable materials generated in the City; WHEREAS, Section 9 of the Refuse Agreement obligates RPDI to indemnify the City in connection with claims related to RPDI's performance under the Refuse Contract; WHEREAS, SIRE Enterprises ( "SIRE ") has made claims alleging that the City and RPDI have overcharged SIRE for trash service at four properties managed by SIRE in the City of Rohnert Park; WHEREAS, RPDI and SIRE have entered into a Settlement Agreement and Mutual Release dated November 17, 2008; and WHEREAS, RPDI and the City have agreed to resolve their mutual claims of indemnity and responsibility against each other for the SIRE Claims and the settlement thereof, as further provided in the terms and conditions stated in the Settlement Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby authorize and approve the attached Settlement Agreement by and between the City of Rohnert Park and Rohnert Park Disposal, Inc. BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to execute this Settlement Agreement in substantially similar form to the attached agreement for and on behalf of the City of Rohnert Park. DULY AND REGULARLY ADOPTED by the City Council of the City of Rohnert Park this 25th day of November, 2008. ATTEST: 19 AoBNIIRT CITY OF ROHNERT PARK Mayor BREEZE: AYE SMITH: AYE STAFFORD: ABS T VIDAK- MARTINEZ: AYE MACKENZIE: AYE AYES:. (4) NOES: (0) ABSENT: (1) ABSTAIN: (0) SETTLEMENT AGREEMENT (Indemnity Claim) This Settlement Agreement (hereinafter "Agreement ") is entered into by and between City of Rohnert Park, a California municipal corporation ( "City "), and Rohnert Park Disposal, Inc., a California corporation (hereinafter referred to as "RPDI ") effective November , 2008. RECITALS A. City and RPDI entered into that certain Amended and Restated Agreement for Refuse, Recyclable Materials, Compostable Materials and Street Sweeping Service dated July 1, 2008 ( "Refuse Contract ") in which City granted to RPDI a franchise for the collection of refuse, recyclable materials and compostable materials generated in the City. B. Section 9 of the Refuse Contract obligates RPDI to indemnify City in connection with claims related to RPDI's performance under the Refuse Contract. C. SIRE Enterprises ( "SIPE ") have made claims alleging that the City and RPDI have overcharged SIRE for trash service at four properties managed by SIRE in the City of Rohnert Park: Emerald Point, Windsong Village, Vintage Point and Vintage Point H between 2002 and April 2008 ( "SIRE Claims "). D. Without admission of any wrongdoing or liability of any type, RPDI and SIRE have entered into that certain Settlement Agreement and Mutual Release dated November 17, 2008, providing for, among other things, payment from RPDI to SIRE to resolve SIRE's Claims. E. RPDI and City have exerted claims against each other with respect to who is responsible for the SIRE Claims and have agreed to resolve their mutual claims of indemnity and responsibility against each other for the SIRE Claims and the settlement thereof, as further provided in the terms and conditions stated in this Agreement. AGREEMENT Incorporation of Recitals. The above recitals are incorporated herein by reference. 2. Payment by City to RPDI. Without admission by either party of wrongdoing of any type or breach or default of the Refuse Agreement in any way, City and RPDI have reached agreement to mutually release the claims each has against the other arising from the SIRE Claims and to divide responsibility for the settlement payment to SIRE. Within 10 business days after City has received an invoice from RPDI requesting City to reimburse RPDI for City's portion of the payment of the SIRE Claims and provided that RPDI has made such payment to SIRE, City shall pay to RPDI the sum of $13,789.43 ( "the Settlement Sum "). RPDI shall accept the payment of the Settlement Sum by City as full satisfaction of City's obligations arising from or relating to the SIRE Claims, and effective upon RPDI's payment of the SIRE Payment to SIRE, City shall accept the payment of the SIRE Payment by RPDI to SIRE as full satisfaction of RPDI's obligations to CITY arising from or relating to the SIRE Claims. 11407470 80078/0049 3. Mutual Release. Except as otherwise expressly set forth in this Agreement, the City and RPDI hereby release and forever discharge each other, together with their agents, representatives, trustees, employees, officers, directors, partners, stockholders, attorneys, successors, assigns, heirs, personal representatives and executors, and all persons, firms, associations, co-partners, co- venturers, insurers, contractors, engineers, subcontractors, subsidiaries, parents, affiliates, or corporations connected therewith, and each of them from any and all claims, debts, liabilities, demands, obligations, costs, expenses, attorneys' fees, actions, and causes of actions of every nature, character, and description whether known or unknown, attributable to the SIRE Claims expressly asserted by SIRE and all claims by either party against the other arising from or related to the SIRE Claims. In the event that there are any claims made by SIRE in the future and which are not known or anticipated by City to exist as of the date of this Agreement ( "Future SIRE Claims "), then, with respect to that particular circumstance, City and RPDI acknowledge that City may assert a claim against RPDI that is attributable to such Future SIRE Claims, but only upon SIRE asserting a claim against the City arising from or related to the Future SIRE Claims. 4. No Release Beyond SIRE Claims. Notwithstanding the mutual release set forth in Section 3 above, both City and RPSI expressly reserve and do not release the other party from any or all claims and defenses which City or RPDI now has or may have in the future in connection with either parties' obligations to the other under the Refuse Contract including but not limited to any billing claims similar to the SIRE Claim but not expressly asserted by SIRE. 5. Entire Agreement; Modification. As to the matters set forth herein, this Agreement is the entire, integrated agreement and understanding of the Parties. This Agreement may be modified only by a writing signed by the Parties. 6. Successors and Representatives. This Agreement shall be binding on and shall inure to the benefit of the successors and assigns of each party. 7. Applicable Law. This Agreement shall be interpreted in accordance with California law, without reference to its choice of laws provisions 8. Execution in Counterparts. This Agreement may be executed in counterparts, and fax copies shall constitute good evidence of such execution. 9. Authori . Each individual executing this Agreement on behalf of one of the parties represents that he or she is duly authorized to sign and deliver the Agreement on behalf of such party and that this Agreement is binding on such party in accordance with its terms. [Intentionally left blank, signatures on next page.] 2 11407470 80078/0049 IN WITNESS W EREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF ROE INERT PARK: By:_ Name: Title: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney ROIINERT PARK DISPOSAL, INC.: By: /!l i (Date) Nam iMS n . at ) . Title: By: Name: (Date) Title: 3 1140747x3 80078/0049