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CC Resolution No. 00-097RESOLUTION NO. 00-097 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING EXECUTION OF MUTUAL RELEASE AGREEMENT AND ENVIRONMENTAL RELEASE AND INDEMNITY AGREEMENT BETWEEN THE CITY OF CUPERTINO AND PH PROPERTY DEVELOPMENT COMPANY WHEREAS, there has been presented to the City Council a Mutual Release Agreement and an Environmental Release and Indemnity Agreement between the City of Cupertino and PH Property Development Company, a Delaware Corporation; and WHEREAS, the provisions, terms, and conditions of the aforementioned agreements have been reviewed and approved by the City Attorney and the Director of Public Works. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby authorizes the Mayor and the City Clerk to execute said Mutual Release Agreement and Environmental Release and Indemnity Agreement on behalf of the City of Cupertino. PASSED AND ADOPTED at a regular adjourned meeting of the City Council of the City of Cupertino this 24~ day of March, 2000, by the following vote: Vote Members of the City Council AYE S: NOES: ABSENT: ABSTAIN: Burnett, Lowenthal, Vice Mayor James None Chang, Mayor Statton None , ATTEST: VED: · Mayor, City of Cupertino MUTUAL RELEASE AGREEMENT This Mutual Release Agreement ("Agreement") is entered into by and between PH Property Development Co., a Delaware corporation (hereafter referred to as "PH") and the City of Cupertino, a municipal corporation (hereinafter referred to as "City"). 1. PH and the City, on behalf of themselves and their respective present or former attorneys, agents, employees, officers, directors, shareholders, assigns, insurers, predecessors-in-interest, subsidiaries, parents or other corporations, unincorporated business entities, or other entities, including but not limited to any municipal corporation, or government agency, or any present or former employees, agents, officers, directors, shareholders or assigns of such entity or person, and all persons acting by, through, under, or in concert with any of them, and each of them, shall and hereby do, except as provided in paragraphs 2.1 and 2.2, covenant not to sue, and acknowledge complete satisfaction of, and hereby release and discharge each other, together with their respective present or former attomeys, agents, employees, officers, directors, shareholders, assigns, insurers, predecessors-in-interest, subsidiaries, parents or other corporations, unincorporated business entities, or other entities, including but not limited to any municipal corporation, or government agency, or any present or former employees, agents, officers, directors, shareholders or assigns of such entity or person, and all persons acting by, through, under, or in concert with any of them, and each of them, with respect to and from any and all claims, demands, actions, agreements, causes of action, obligations, expenses, attomey fees, damages, or liabilities, whether arising in contract, tort, law, equity or otherwise, in conunon law or statute, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, past, existing, potential, or future, arising from or related in any way to costs, damages, including punitive damages, or other matters with respect to, or in connection with, the activities undertaken on or before December 14, 1999 by the City or its agents for investigation and remediation of waste materials on the property commonly known as the McDonald Dorsa Property, which property is more specifically described in Exhibit A attached to that certain Environmental Cleanup Agreement between PH and the City, dated on or about September 26, 1997 (hereinafter referred to as "Released Claims"). 2. Despite the generality of the foregoing, the covenant not to sue, acknowledgment of satisfaction, and release and discharge set forth herein does not include: 2.1 Any claims that may arise from any obligation of the City under that certain Environmental Cleanup Agreement entered into between PH and the City on or about September 26, 1997, and it is agreed that all obligations of the City under the Environmental Cleanup Agreement are specifically preserved and as to such obligations no covenant not to sue, acknowledgment of satisfaction, or release or discharge is provided herein; or 2.2 Any claims by one party against another for indemnity or contribution relating to any claims asserted by a person or entity not a party to this Agreement against PH or the City including, without limitation, any such claims made by any third party for personal injury, toxic tort, natural resource damages, CERCLA contribution, or diminution of property value. Mutual Release Agreement- 1400/20713-0001 3. In consideration of the releases set forth herein, PH hereby withdraws and dismisses the claim it presented to the City dated October 28, 1997 relating to the alleged presence of waste materials on the McDonald Dorsa property, and it is agreed that each party is to bear its own costs and attorneys' fees, if any, relating to such claim. 4. It is a further condition of the covenants undertaken and releases given by PH and the City, and it is the intention of PH and the City in executing this Agreement, that this Agreement shall be effective as a bar as to the Released Claims. In furtherance, and not in limitation, of this intention, the releases described herein shall be and shall remain in effect as full and complete releases, notwithstanding the discovery or existence of any additional or different facts or claims. PH and the City expressly understand and agree that this Agreement is intended to cover, and does cover, not only all known facts and/or claims, but also any further facts and/or claims, not now known or anticipated, but which may later develop or be discovered, including all the effects and consequences thereof. 5. PH and the City hereby acknowledge that they are familiar with 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 FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." PH and the City hereby expressly waive and relinquish all rights and benefits which they have or may have under California Civil Code section 1542 and any statute, role, and legal doctrine in this or any other jurisdiction to the same or similar effect as section 1542 to the full extent that they may lawfully waive such rights and benefits. In making this waiver, PH and the City acknowledge that they may hereafter discover facts in addition to or different from those which they now believe to be tree with respect to the subject matter of the disputes and other matters released herein, but agree that they have taken that possibility into account in reaching this Agreement and that the releases given herein shall be and remain in effect as full and complete releases notwithstanding the discovery or existence of any such additional or different facts, as to which PH and the City expressly assume the risk. 6. Each of the persons signing this Agreement declares and represents that the party on whose behalf he or she is signing has taken all necessary corporate and legal action to approve the making and performance of this Agreement, that he or she is competent to execute this instrument, and that he or she is duly authorized, and has the full right and authority, to execute this Agreement on such party's behalf. 7. Each party represents, warrants and agrees that it (a) is the sole and lawful owner of all right, title, and interest in and to the Released Claims, (b) has not assigned or transferred, or purported to or attempted to assign or transfer, to any person or entity any claim or other matter released herein, and (c) has taken all necessary corporate and legal action to approve the making and performance of this Agreement, including authorizing the person who has executed this Agreement to do so on its behalf. 2 Mutual Release Agreement - 1400 §. The representations, warranties, agreements, and promises made by each party to this Agreement and contained herein shall survive the execution of this Agreement. 9. It is acknowledged that each party, with the assistance of competent counsel, has participated in the negotiation and drafting of this Agreement and that any ambiguity should not be construed for or against any party on account of such drafting. The parties agree that this Agreement has been negotiated at arms' length by parties of equal bargaining power, each represented by competent counsel of its own choosing. In entering into this Agreement, the parties represent that they have relied upon the advice of their attorneys, who are attorneys of their own choice, and that the terms of this Agreement have been completely read and explained to them by their attorneys, and that those terms are fully understood and voluntarily accepted by them. 10. This Agreement may be executed in counterparts, each of which will be deemed to be an original and all of which together shall be deemed one and the same instrument. This Agreement is not and shall not be effective, however, unless and until each party has executed an original. assignable. I 1. The promises, covenants, and warranties contained herein shall not be 12. Ali notices, demands, approvals, and other communications provided for in this Agreement shall be in writing and shall be effective: (a) when personally delivered to the recipient at the recipient's address set forth below; or (b) one business day after deposit with a reputable overnight courier or delivery service, addressed to the recipient as set forth below. If the date on which any notice to be given under this Agreement falls on a Saturday, Sunday or legal holiday, then such date shall automatically be extended to the next business day. The addresses for notice are: IF TO CITY: City of Cupertino 10300 Torte Avenue Cupertino, CA 95014-3255 Attn: czr r/ ~ot- %~ er~ 1F TO PH PROPERTY: PH Property Development Company 945 East Paces Ferry Road, Suite 2515 Atlanta, GA 30326 Attn: Jeffrey Harland Any party may change its address by notice delivered in the manner specified in this section. 13. In the event either party to this Agreement shall bring suit to enforce or interpret this Agreement, the prevailing party in any such litigation, including appeals, shall be entitled to recover from the other party all costs and expenses of such litigation and reasonable attorneys fees and costs as fixed by the court. The "prevailing party", for purposes of this 3 Mutual Release Agreement - 1400 Agreement, shall be deemed to be that party who obtains substantially the result sought, whether by settlement, dismissal or judgment, and shall be conclusively determined by the court or arbitrator, as applicable. 14. This Agreement shall be govemed by the laws of the State of Califomia applicable to contracts made and to be performed in Califomia. 15. No modification of this Agreement shall be effective unl6ss set forth in writing, signed by the party against whom the modification is sought to be enforced. The party benefited by any condition or obligation may waive the same, but the waiver shall not be enforceable by another party unless made in writing and signed by the waiving party. 16. If any provision of this Agreement as applied to either party or to any circmnstance shall be adjudged by a court of competent jurisdiction to be void or unenforceable for any reason, the same shall in no way affect (to the maximum extent permissible by law) any other provision of this Agreement, the application of any such provision under circumstances different from those adjudicated by the court or the validity or enforceability of this Agreement as a whole. PH PROPERTY DEVELOPMENT COMPANY By: Its: 'd Dated: CITY OF CUPERTINO f Mayor, City Council ^TTESTE6 / City Clerk; APPROVED AS TO FORM: City Attorney Dated: ~ 4 Mutual Release Agreement- 1400 Environmental Release and Indemnity Agreement This Environmental Release and Indemnity Agreement (the "Agreement") is entered into as of March 24 , 2000 by PH Property Development Company, a Delaware corporation (the "PH Property") and the City of Cupertino, a municipal corporation (the "City") and is attached to that certain Grant Deed dated December 28, 1999. RECITALS This Agreement is made with reference to the following facts and intentions of the parties: A. PH Property has caused its successor in title to dedicate certain land to the City upon which the City has previously constructed a road and which is more particularly described on Exhibit A (the "Property"). The City operated a landfill near the Property, and has taken responsibility for the cleanup and appropriate remediation of the landfill in accordance with all applicable Environmental Laws and other requirements. B. Transfer of the Property is conditioned on the City's providing to PH Property a full and complete release and indemnity relating to any and all Hazardous Materials, Waste Materials and environmental matters concerning the Property, as more fully set forth below. AGREEMENT NOW, THEREFORE, as a material part of the consideration for the dedication, and for other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: Section 1. Definitions 1.1. Environmental Laws. The term "Environmental Laws" means any federal, state, or local statute, regulation, rule, ordinance, permit, license, requirement, agreement, approval, directive, judgment, decree or order (whether now existing or later adopted or promulgated) relating to pollution or the protection of the environment, humans or animals from Hazardous Materials. 1.2 Hazardous Materials. The term "Hazardous Materials" means any material, chemical, compound, substance, mixture, or byproduct that is identified, defined, or regulated under Environmental Laws as a "hazardous constituent," "hazardous substance," "hazardous waste constituent," "infectious waste," "medical waste," "biohazardous waste," "extremely hazardous waste," "pollutant," "toxic pollutant," or "contaminant," or any other formulation intended to classify substances by reason of properties that are deleterious to the environment, natural resources or human or animal health or safety including without limitation ignitability, infectiousness, corrosiveness, radioactivity, carcinogenicity, toxicity, and reproductive toxicity. The term "Hazardous Materials" specifically shall include any form of natural gas, as well as any petroleum products or any fraction thereof. 1.3 Released Parties. The term "Released Parties" means PH Property, its affiliates and their respective shareholders, officers, directors, partners, employees, agents, contractors, successors and assigns. 1.4. Waste Materials. The term "Waste Materials" means any putrescible or nonputrescible solid, semisolid, liquid or gaseous waste of any type whatsoever, including without limitation: Any garbage, trash refuse, paper, rubbish, ash, industrial, commercial or residential water, demolition or construction wastes, abandoned vehicles or parts thereof, discarded home and industrial appliances, sewage, sewage sludge, manure and vegetable or animal waste. Section 2. Release The City for itself and each and all of its successors-in-interest to the Property (and each and all of their respective tenants of all or a portion of the Property), and their affiliates, lenders who take title to or a security interest in all or a portion of the Property, shareholders, officers, directors, employees, agents, contractors, successors and assigns (collectively, the "Waiver Parties") hereby unconditionally and completely release and discharge the Released Parties (as defined in Section 1) from and against any and all actual, threatened or potential claims, proceedings, liabilities, losses, liens, penalties, fines, costs and expenses of every kind and nature (including without limitation attorney's and consultant's fees and costs), and whether asserted by a third party against any of the Waiver Parties or incurred directly or indirectly by any of the Waiver Parties themselves, that any of the Waiver Parties may now or subsequently have against any of the Released Parties (collectively, the "Losses"), and that arise in connection with or in any way are related to any Hazardous Materials or Waste Materials at, beneath, above or migrating to or from the Property and any compliance or non-compliance with Environmental Laws in connection with the Property (collectively, the "Released Matters"). Section 3. Civil Code Section 1542 Release. The City acknowledges that it is familiar with Section 1542 of the California Civil Code, which 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 EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. The City, on behalf of itself and the other Waiver Parties, waives and relinquishes any fight or benefit under California Civil Code Section 1542 or any similar provision of law pertaining to the Released Matters. Section 4. Indemnification and Covenant Not to Sue. 4.1. The City's Indemnification of Released Parties. The City shall indemnify, defend (with counsel reasonably acceptable to PH Property) and hold the Released Parties harmless from and against any Losses arising in connection with or related to the Released Matters. 4.2. Covenant Not to Sue. The City, on its own behalf and on behalf of each of the other Waiver Parties, covenants and agrees never to sue or otherwise commence, aid in any way, or prosecute any action or other proceeding against any of the Released Parties, based on the Released Matters. If any of the Waiver Parties asserts a claim that is contrary to this Section 4.2, that Waiver Party shall defend, indemnify and hold harmless the Released Parties against whom the claim is asserted for all Losses incurred. This Agreement may be pleaded by a Released Party as a full and complete defense to any action or proceeding that is contrary to this Section 4.2, and may be asserted as a basis for abatement of, or injunction against, the action or proceeding and as a basis for a cross- complaint for damages. Section 5. Miscellaneous. 5.1. Notice.. All notices, demands, approvals, and other communications provided for in this Agreement shall be in writing and shall be effective: (a) when personally delivered to the recipient at the recipient's address set forth below; or (b)one business day after deposit with a reputable overnight courier or delivery service, addressed to the recipient as set forth below. If the date on which any notice to be given under this Agreement falls on a Saturday, Sunday or legal holiday, then such date shall automatically be extended to the next business day. The addresses for notice are: IF TO CITY: City of Cupertino 10300 Torre Avenue Cupertino, CA 95014-3255 Attn: City Manager IF TO PH PROPERTY: PH Property Development Company 945 East Paces Ferry Road, Suite 2515 Atlanta, GA 30326 Attn: Jeffrey Harland Any party may change its address by notice delivered in the manner specified in this Section 5.1. 5.2. Litigation and Attorneys' Fees. In the event either party to this Agreement shall bring suit to enforce or interpret this Agreement, the prevailing party in any such litigation, including appeals, shall be entitled to recover from the other party all costs and expenses of such litigation and reasonable attorneys fees and costs as fixed by the court. The "prevailing party", for purposes of this Agreement, shall be deemed to be that party who obtains substantially the result sought, whether by settlement, dismissal or judgment, and shall be conclusively determined by the court or arbitrator, as applicable. 3 5.3. Governing Law. This Agreement shall be governed by the laws of the State of California applicable to contracts made and to be performed in California. 5.4. Assignability. The City may not assign its rights under this Agreement, in whole or in part, without PH Property's prior written consent in each instance, which consent may be granted or withheld in PH Property's sole discretion. In the event PH Property approves an assignment of this Agreement, the City shall remain liable under the terms hereof. 5.5. Time. Time is of the essence as to the performance of the City's obligations under this Agreement. 5.6. Interpretation. This Agreement has been drafted through a joint effort of the parties and, therefore, shall not be construed in favor of or against either of the parties. 5.7. Amendments and Waivers. No modification of this Agreement shall be effective unless set forth in writing, signed by the party against whom the modification is sought to be enforced. The party benefited by any condition or obligation may waive the same, but the waiver shall not be enforceable by another party unless made in writing and signed by the waiving party. 5.8 Invalidity of Provisions. If any provision of this Agreement as applied to either party or to any circumstance shall be adjudged by a court of competent jurisdiction to be void or unenforceable for any reason, the same shall in no way affect (to the maximum extent permissible by law) any other provision of this Agreement, the application of any such provision under circumstances different from those adjudicated by the court or the validity or enforceability of this Agreement as a whole. 5.9. Recordation. The parties intend that this Agreement shall run with the Property, and that this Agreement shall be an exception to the Deed as recorded in the Official Records of Santa Clara County, California. 5.10. Authority. Each party represents to the other that it has full power and right to enter into and perform its obligations under this Agreement and the other agreements contemplated to be executed and performed by it. 1N WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. PHPROPERTY: PH PROPERTY DEVELOPMENT COMPANY a Delawa/~oo~poration Je~arland, President CITY: ~ Statton, Mayor ATTESTE~: By:~ ,~~' ~ity Clerk, APPROVED AS TO FORM: City Attorney EXHIBIT A LEGAL DESCRIPTION OF PROPERTY SEE ATTACHED NW CORNER N742 O.R. 2072 PARCEL ONE (QUARTER SECTION LINE) '~ NE COR. N742 O.R. 2072 PARCEL ONE S 88~3'03" W 60.15' 897,17' 376 3B 540 Price Avenue Redwood Cit~ CA 94065 650/482-6300 650/482-6599 (FAX) N742 O.R. 2072 PARCEL ONE THIRD COURSE N742 O.R. 2072 ("S65°07"40"W 85.94 FEET") Subject EXHIBIT "B" Job No. 960205-20 By BGT Dote 10/19/99Chkd. SHEET 2 OF 2 Situate in the City of Cupertino, County of Santa Clare, State of California, and being a portion of "Parcel One," as said parcel is described in that certain Grant Deed from Kaiser Cement Corporation to PH Property Development Company, which was recorded in Book N742 of Official Records Page 2072, on January 27, 1995, Santa Clare County Records, being more particularly described as follows: Beginning at the northeasterly corner of said Parcel One; Thence along the northerly line of said parcel, South 88013'03" West [said Grant Deed bearing stated as South 88009'53" West], 897.17 feet to a point which lies North 88013'03" East. 60.15 feet from the northwesterly corner of said Parcel One; Thence, leaving said northerly line, South 26038'03" West, 123.24 feet to its intersection with the northeasterly projection of the third course found in said Deed which states "thence South 65 deg. 07' 40" W, 85.94 feet"; Thence along said northeasterly projection, South 64°55'08" West [said Deed bearing stated as North 65007'40" East], 42.25 feet; Thence, North 14°49'21" East, 130.55 feet to the said northwesterly corner of said Parcel One; Thence, along said northerly line, North 88°13'03" East [said Deed bearing stated as South 88o09'53" West], 60.15 feet to the True Point of Beginning. Containing an area of 5,376 square feet, more or less. A plat showing the described area is attached hereto and made a part hereof as Exhibit "B". This description was prepared by me or under my direction in conformance with the Professional Land Surveyors Act. Billy Marfin,~S 5797 License Expires 9/30/2000 K:\MAIN\1996\960205\LEGALS~RWDEDIC.DOC 1 of 2 540 Price Avenue · Redwood City. CA 94063 · (650) 482-6300 · FAX (650) 482-6399 · .,TATE OF COUNTY OF On ~,J3,,J~-before me, ..-~ ~R'~ personally appeared '~ NAME(S) OF SIGNER(S) , Notary Public, [~i/personally known to me - OR - [] proved to me on the basis of satisfactory evidence to be the person(s) whose ~.ub~. ~u#~County, c-~,g~, name(s) is/are subscribed to the within Mycomm,ssJon expires April 1. 2001. instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(les), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. OPTIONAL SECTION CAPACITY CLAIMED BY SIGNER Though statute does not require the Nota~ to fill in the data below, doing so may prove invaluable to persons re¥ing on the document, [] INDIVIDUAL ~CORPORATE OFFICER(S) TITLE(S) [] PARTNER(S) [] LIMITED [] GENERAL [] A'I-FORNEY-IN-FACT [] TRUSTEE(S) [] GUARDIAN/CONSERVATOR [] OTHER: SIGNER IS REPRESENTING: Name of Person(s) or Entity(les) THIS CERTIFICATE MUST BE A'I-rACHED TO THE DOCUMENT DESCRIBED AT RIGHT: Though the data requested here is not required by law, it could prevent fraudulent reattachment of this for~. OPTIONAL SECTION Title orType of Document Number of Pages Date of Document Signer(s) Other Than Named Above {31993 National Notary Association, Canoga Park, CA