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SETTLEMENT AGREEMENT AND RELEASE AGREEMENT
This Settlement Agreement and Release of Agreement ("Agreement") is between the City of California City ("City") and KJI Plumbing, Inc., a California Corporation headquartered at 38904 N Sierra Highway, Palmdale, CA 93550 ("KJI Plumbing") (individually, a "Party" or collectively, the "Parties"). The Parties enter into this Agreement for the purpose of resolving a dispute related to work performed by KJI Plumbing ("Dispute").
RECITALS
A. KJI Plumbing installed a water heater on a time and materials basis at 21295 Desert Jade Circle ("Desert Jade Villas") as requested by the City on October 28, 2023. It was later determined that the water heater would require an expansion tank and water pan to be in compliance with the California Building Code. The City and KJI Plumbing got into a dispute about whether KJI Plumbing would install the expansion tank and water pan before or after being paid. KJI Plumbing submitted an invoice to the City for $3,265, which did not include any cost for adding an expansion tank and water pan. A copy of the invoice is included as Attachment A to this Agreement.
B. The City hired Racer Rob's—another plumbing contractor—to install an expansion tank and water pan to bring the water heater into compliance with the Building Code at a cost of $609.71. A copy of the City's check register approving payment to Racer Rob's for this work is included as Attachment B to this Agreement.
C. The Parties agree that the total amount the City shall pay to KJI Plumbing in full satisfaction of KJI Plumbing's work described above is $2,655.29, which is the amount on KJI Plumbing's invoice minus the amount the City had to pay Racer Rob's to add an expansion tank and water pan to bring the water heater into compliance with the Building Code.
D. The Parties desire to settle the Dispute as set forth below.
AGREEMENT
In consideration of the foregoing recitals, the mutual covenants and promises set forth in this Agreement, and other good and valuable consideration, receipt of which is hereby acknowledged, the Parties agree to all of the following conditions and terms:
1. City to Pay KJI Plumbing in Full Satisfaction of Dispute. City shall pay KJI Plumbing the sum of $2,655.29 to fully resolve the Dispute, and KJI Plumbing agrees that such amount constitutes full satisfaction of the Dispute. The City shall make payment within ten (10) days of the City Council's approval of the Agreement and check register.
2. No Admission of Liability. KJI Plumbing and City understand and agree that liability for the matters encompassed in the Dispute and in this Agreement is a compromise and shall not be construed as an admission of any fact, claim or allegation of liability or responsibility on the part of the Parties.
3. Mutual Release. Except for the rights and obligations expressly created by this Agreement, each Party, and all of its predecessors, successors, and assigns, fully, finally and forever releases each other Party, and all of its predecessors, successors, and assigns, from any and all known or unknown, direct or indirect, actual or potential, suspected or unsuspected claims, demands, causes of action, damages, claims for attorneys' fees, interest, expenses, costs, contracts, orders, execution, and liabilities for claims relating to or arising out of the subject matter of this Agreement.
Each Party is aware that it may have claims against the other Party in connection with the subject matter hereof, of which such Party may have no present knowledge or suspicion. Having taken into account such a possibility in entering into this Agreement, and subject to the obligations and limitations set forth in this Agreement, the Parties agree that any releases set forth in this Agreement shall be full and final releases applying to all unknown and unsuspected claims, as of the Effective Date of this Agreement, that each may have against the released Party in connection with the subject matter thereof. Each Party expressly waives any right or claim of right to assert hereafter that any such claim has, through oversight or error, been omitted from the terms of this Agreement. Each Party acknowledges that it has the 4892-6243-7286 v2
opportunity to receive independent legal advice from attorneys with respect to the advisability of executing this Agreement and expressly waives any rights or benefits that it otherwise might have under California Civil Code Section 1542 or any other similar state or federal statute, which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY
DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE
AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
4. Notice. Any notice related to this Agreement shall be sent by both email and mail to a physical address, per below. The Parties shall give notice in writing to the other of a change of address to which notices should be sent.
For City:
City of California City, City Attorney's Office
Attention: Victor M Ponto
[email protected]
1770 Iowa Avenue
Suite 240
Riverside, CA 92507-2479
For KJI Plumbing:
KJI Plumbing, Inc.
Attn: Joy Isaman 38904 N Sierra Highway
Palmdale, CA 93550
5. Good Faith. The Parties shall cooperate in good faith to timely effectuate the terms and conditions of this Agreement, including execution of any additional documents required to be signed.
6. Entire Agreement. This Agreement constitutes the entire agreement and understanding of the Parties.
This Agreement may be amended or modified only by a written instrument executed by both Parties.
7. Severability. The invalidity of any portion of this Agreement shall not invalidate the remainder.
8. Agreement Admissible. The Parties agree that this Agreement is admissible as evidence in any action to enforce this Agreement.
9. Successors and Assigns. This Agreement shall be binding upon, and inure to the benefit of, the Parties hereto and their respective successors, heirs, administrators, and assigns.
10. Counterparts. This Agreement may be executed in one or more counterparts (including multiple signature pages), and may be signed and exchanged by facsimile or by email. 4892-6243-7286 v2
DATED:
T y
DATED: ________________________
CITY OF CALIFORNIA CITY
By: ______________________________
Patrick Marsh, City Manager
KJI Plumbing, Inc.
By:
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APPROVED AS TO FORM:
Ictf Coufisel for KJI Plumbing
DATED:
DATED:
ATTEST:
Socorro Chavez, City Clerk
APPROVED AS TO FORM:APPROVED AS TO
FORM:
By: By:_____________________________
Victor M. Ponto, City AttorneyGregory
MacDonald, Counsel for KJI Plumbing
Attachment A: KJI Plumbing's Invoice
Attachment B: February 13, 2024 Check Register to Racer Rob's
COUNCIL AGENDA ITEM
March 12, 2024
PREPARED BY: Nicole Jarmon-Simmons/ Housing Manager
SUBJECT: Desert Jade & Legends Housing
BACKGROUND/ DISCUSSION
Desert Jade
Currently has 89 apartments filled.
7 units are still undergoing rehab.
All inspections for Desert Jade have been completed.
Inspections for Legends are set for Mid-March
Waitlist currently has 68 applicants.
Legends
Currently has 5 apartments and 5 houses filled.
Waitlist is combined with Desert Jade