SETTLEMENT AGREEMENT AND GENERAL RELEASE

THIS SETTLEMENT AGREEMENT AND GENERAL RELEASE ("Agreement") is

made between the City of Carmel-by-the-Sea (which includes without limitation the
City's legislative bodies, the City Council and its members, the Police Department of the
City of Carmel-by-the-Sea and all other departments, commissions, agencies, boards,
predecessors, successors, subsidiaries, related entities, past, present, and future
employees, officers, directors, managers, agents, affiliates, assigns, and insurers)
(collectively, "the City") and Deborah Hidalgo (referred to herein as "Hidalgo") regarding
any and all complaints grievances, charges, claims or causes of action that Hidalgo has
or may have since the first date of her employment with the City until the date of
execution of this Agreement.

RECITALS

Hidalgo was employed by the City as a Parking Enforcement Officer from 1987 to
1992, and has been reemployed as a Community Services Officer since 2005. Hidalgo
has not been on any form of compensated employment status since June 2014.
Hidalgo filed two different charges against the City with the California Department
of Fair Employment & Housing, including DFEH Numbers 196038-82594 and 168394160733. Concurrent with the first DFEH charge, Hidalgo filed a charge with the United
States Equal Employment Opportunity Commission, Charge Number 37A-2014-02277C. The charges are attached and incorporated into this Agreement.
City responded to the first charge. Hidalgo requested an immediate right to sue
and case closure of the both charges.
City has denied all charges made by Hidalgo.
Hidalgo has made no claims for any industrial injury, whether physical or mental,
and does not intend to file any such claims before the Workers' Compensation Appeals
Board.

- Page 1 of7 Hidalgo v City of Carmel-by-the-Sea

Settlement and Release Agreement

Hidalgo and the City (sometimes referred to as a "Party" or collectively as "the

Parties") now desire to resolve, fully and forever, any and all actual and potential
grievances, disputes, controversies, charges, claims, actions and lawsuits which exist or
could exist among them which were or could have been asserted by one against the
other during Hidalgo's employment, to terminate any employment relationship, and to
settle and dismiss any and all administrative charges before the DFEH and the EEOC.
NOW, THEREFORE, HIDALGO AND THE CITY OF CARMEL-BY-THE-SEA
AGREE AS FOLLOWS:

TERMS

1.

The City and/or its agents will pay to Deborah Hidalgo and her attorneys,

Michelle Welsh and the law firm of Stoner, Welsh & Schmidt, the lump sum of One
hundred twenty five thousand dollars ($125,000.00) as full and final payment for any
claim Hidalgo may have against City during the time of her employment, to be allocated
by Hidalgo between herself and her attorneys, with Hidalgo to be responsible for any
and all applicable taxes. An Internal Revenue Form 1099 will be issued to Stoner,
Welsh and Schmidt on behalf of Hidalgo reporting payment of that amount. Hidalgo
understands and agrees that the City makes no representation regarding the tax
consequences of her receipt of the above-specified funds and that any tax liability
thereon is the sole responsibility of Hidalgo. Except as otherwise set forth in Paragraph
14 below, Hidalgo fully and forever waives all claims and rights to recover any attorneys'
fees, costs and/or expenses related to Hidalgo's charges.

2.

In consideration of the foregoing payments and promises, Hidalgo for herself and

on behalf of her heirs, executors, assigns and successors, agrees to dismiss or

withdraw any and all administrative charge, lawsuit, government claim or other form of
redress relating in any way to Hidalgo's employment, agrees to covenant not to sue and
to dismiss with prejudice any lawsuit and any and all complaints, claims, charges, and
any other administrative or legal actions which are or may be pending relating to her
employment with the City, including but not limited to the DFEH and EEOC charges.
-Page 2 of 7 Hidalgo v City of Carmel-by-the-Sea

Settlement and Release Agreement

Within five (5) business days of execution of this Agreement, Hidalgo will send to the
City, through its attorneys The Law Office of Vincent P. Hurley, a copy of letters from
DFEH and EEOC referencing any and all charge numbers and confirming closure of her
cases. If any other claims exist in any other court or administrative body, Hidalgo will
promptly dismiss with prejudice any such complaint, charge, or claim.

3.

Hidalgo and City agree, acknowledge and recognize that this Agreement is a "no

fault" settlement in light of disputed claims. Both parties deny liability or wrongdoing.
Nothing contained in this Agreement and Release shall constitute or be treated as an
admission of liability or wrongdoing by the City (including its legislative bodies, the City
Council and its members, departments, commissions, agencies, boards, predecessors,
successors, subsidiaries, related entities, past, present, and future employees, officers,
directors, managers, agents, affiliates, assigns, and insurers).

4.

Each Party understands and expressly agrees that, except as specifically set

forth herein, this Agreement extends to all claims of every nature and kind, known or
unknown, suspected or unsuspected, past, present or future, arising from or attributable
to Hidalgo's employment by the City. Each Party acknowledges that any and all rights
granted under Section 1542 of the California Civil Code or any analogous state or
federal law or regulation are hereby expressly waived. Each Party recognizes and
acknowledges that factors which have induced the entry into this Agreement might turn
out to be incorrect or different from what was previously anticipated, and each Party
expressly assumes all of the risks of this waiver of California Civil Code Section 1542,
which reads as follows:
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.

5.

The Parties agree to execute all documents and perform all acts necessary to

effectuate the terms and purposes of this Agreement.

-Page 3 of7Hidalgo v City of Carmel-by-the-Sea

Settlement and Release Agreement

6.

The Parties agree that this Agreement has absolutely no precedential value, and

may not be introduced as evidence in connection with any claim, legal proceeding,
hearing or lawsuit, except in a proceeding to enforce this Agreement.

7.

Hidalgo further agrees that she will not be employed by the City and that she

does not possess any rights or claims to future employment with the City, including but
not limited to the Police Department. Hidalgo further promises and agrees not to accept
or apply for employment or otherwise seek to be hired, rehired, or reinstated by the City.
The City confirms that upon Hidalgo's retirement from her employment with the City she
shall be entitled to the same benefits as the City provides to other retirees.

8.

In the event that any term, condition or provision of this Agreement shall be held

by a court of competent jurisdiction to be invalid or against public policy, that term,

condition or provision shall be deemed to be deleted, and the remaining terms,
conditions and provisions shall continue in force and effect.

9.

Hidalgo represents that there is no existing lien, nor is any person or entity

entitled to establish a lien for any payment or payments they have made or will make to
Hidalgo or on behalf of Hidalgo as a consequence of any other matters arising out of or
connected with Hidalgo's employment with the City or the DFEH or EEOC charges and
any and all lawsuits and claims brought by Hidalgo not set forth herein. Hidalgo will
indemnify and hold the City harmless from any liens, claims, demands, rights or causes
of action of any kind or character against the City, whether for other causes of action,
medical care, unemployment and/or disability compensation, attorneys' fees or
otherwise, involving any of Hidalgo's employment by the City or the charges, and any
and all lawsuits and claims brought by Hidalgo against the City not set forth herein.

10.

Hidalgo and City also agree to the following : (a) Hidalgo and a designee of the

Chief of Police will arrange a meeting at a time convenient for both the Police
Department and Hidalgo to come to the Police Department, unlock her assigned locker,
and remove her personal possessions, and at the same time Hidalgo will return all City
-Page 4 of7Hidalgo v City of Carmel-by-the-Sea

Settlement and Release Agreement

property ever issued to her or in her possession including but not limited to the City's
badge and identification card, keys, uniforms, and duty equipment; {b) when it can be
obtained, Hidalgo will receive a ten or fifteen year service pin, in accordance with City
practice; and (c) the City will provide Hidalgo a letter confirming her employment and
dates of employment by the City.

11 .

Paragraph 10 is not intended by the Parties to otherwise effect this settlement

and release. Any dispute about compliance with Paragraph 10 shall not be grounds for
nullifying or excusing performance of any other term of this Agreement.

12.

Each signatory to this Agreement represents and warrants that she or he has full

power to make the releases and agreements contained herein. Hidalgo expressly
represents and warrants that she has not assigned, encumbered or in any manner
transferred all or any portion of the claims covered by the releases and agreements
contained herein. In the event it is determined that Hidalgo made an assignment,
encumbrance or transfer contrary to the terms of this Agreement, Hidalgo will defend
and indemnify the City for any resulting costs, including the costs of judgment and
reasonable attorneys' fees.

13.

There are no agreements, written or oral, express or implied, between the parties

hereto other than those set forth in this Agreement. Any modifications may only be
effected by a writing signed by the parties, and this Agreement and Release supersedes
any prior written or oral agreement between Hidalgo and the City. The parties agree
that there are no representations, agreements, arrangements or understandings, either
written or oral, between or among the parties relating to the subject matter of this
Agreement that are not fully expressed herein.

14.

If it becomes necessary to engage in legal proceedings to enforce or interpret

any of the provisions of this Agreement, the prevailing party shall be entitled to recover
that Party's reasonable attorneys' fees and all expenses including but not limited to
statutory costs incurred in connection with such proceedings.
Page 5 of7Hidalgo v City of Carmel-by-the-Sea

Settlement and Release Agreement

15.

Each Party has had the opportunity to participate in drafting the Agreement. Any

terms, conditions or provisions of the Agreement shall not be construed against one
party and in favor of another by virtue of who actually drafted or circulated the
Agreement.

16.

The validity, interpretation and performance of this Agreement shall be

construed .and interpreted according to the laws of the State of California.

17.

The Parties agree that if this Agreement is executed in counterparts it has the

same force and effect as if executed in a single, complete document.

18.

The signature by the City below confirms that this settlement was considered and

approved by the City Council.

19.

Hidalgo acknowledges that she has been represented by counsel in connection

with this matter, that she has carefully read and fully understands all of the provisions of
this Agreement, and she is entering into this Agreement voluntarily and without
coercion. Hidalgo acknowledges that the waivers she has made are knowing,
conscious and with full appreciation that she is forever foreclosed from pursuing any of
the rights so waived.

~~~I ~

{b

DATED:_ _ _ _ _ _ _ _ __

City of Carmel-by-the-Sea

'1 ~2t-t~

DATED:_ _ _ _ _ _ _ _ __
by Doug Schmitz, City Administrator
- Page 6 of7Hidalgo v City of Carmel-by-the-Sea

Settlement and Release Agreement

15.

Each Party has had the opportunity to participate in drafting the Agreement. Any

terms, condttions or provisions of the Agreement shall not be construed against one
party and in favor of another by virtue of who actually drafted or circulated the
Agreement.
16.

The validity, interpretation and performance of this Agreement shall be

construed .and interpreted acco.rd lng to the laws of the State of California.
17.

The Parties agree that if this Agreement Is executed In counterparts it has the

same force and effect as if executed In a single, complete document.

18.

The signature by the City below confirms that this settlement was considered and

approved by the City Council.

19.

Hidalgo acknowledges that she has been represented by counsel in connection

with this matter, that she has carefully read and fully understands all of the provisions of
this Agreement, and she is entering into this Agreement voluntarily and without
coercion. Hidalgoacknowledges that the waivers she has made are knowing,
conscious and with full appreciation that she is forever foreclosed from pursuing any of
the rights so waived.

~ --.21--

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DATED:.__________________
l.)eborah Hidalgo

City of Carmel-by-the-Sea

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DATED:.___________________

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- Page6of7~

Hidalgo v City of C.armel-hy tho-Sea

Settlement aad Release Agte~ent

APPROVED AS TO FORM:

Stoner, Welsh & Schmidt

DATED:

DATED:

6 "~

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1-' 1

'2-rl' ~

'v "-.?, J-o I - )

by Michelle Welsh, Attorneys for

Deborah Hidalgo

Law Office of Vincent P. Hurley

LJILJs

by Vincent P. Hurley, Attorneys for City

of Carmel-by-the-Sea

-Page 7 of7 Hidalgo v City of Carmel-by-the-Sea

Settlement and Release Agreement