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INSURANCE NOT REQUIRED
<br />WORK MAY PROCEED
<br />N-2022-199
<br />CLERK OF THE COUNCIL
<br />DATE SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
<br />N
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<br />THIS SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS ("Agreement") is entered
<br />Lr) into as of the last date on the signature page (the "Effective Date"), by and between OC
<br />N RECYCLING, INC., a California corporation ("OC Recycling"), and RYAN BLOOM, an
<br />individual ("Bloom", and collectively with OC Recycling, the "OC Recycling Parties"), on the
<br />one hand, and CITY OF SANTA ANA, a California public agency ("City"), on the other. The OC
<br />Recycling Parties and the City are referred to singularly as a "Party" and collectively as the
<br />"Parties" to this Agreement.
<br />o.G�p(7olr� t'vn4C�(Sµ�� RECITALS
<br />A. In 2012, OC Recycling Parties removed 20,700 square feet of asphalt and replaced it with
<br />20,700 square feet of concrete at an industrial facility ("Project") located at 1601 E. Edinger
<br />Avenue in the City of Santa Ana ("Property"), which is owned by 1601 East Edinger, LLC, a
<br />California limited liability company.
<br />B. On or about June 15, 2020, the City issued administrative citation PWNPDES-#001602 with
<br />a fine of $49,000 to OC Recycling Parties ("Citation"). The Citation alleged that OC Recycling
<br />Parties failed to implement the structural best management practices ("BMP") set forth in a
<br />water quality management plan approved in 2019 for the Project (the "2019 WQMP").
<br />C. On or about July 20, 2020, OC Recycling Parties filed an administrative appeal of the Citation
<br />to a hearing officer ("Administrative Appeal").
<br />D. On or about October 5, 2020, the hearing officer issued a decision on the administrative appeal
<br />of the Citation after first holding a hearing on or about September 30, 2020.
<br />E. On or about June 25, 2021, OC Recycling Parties initiated an action appealing the decision of
<br />the hearing officer to the Superior Court of California, County of Orange, in the action entitled
<br />Bloom v. City of Santa Ana, Case No. 30-2020-01166776-CU-JR-CJC ("the Superior Court
<br />Appeal").
<br />F. By minute order dated February 11, 2021, the superior court ruled that the Project constituted
<br />a significant redevelopment, making City Municipal Code section 18-156 applicable.
<br />G. On June 25, 2021, the superior court entered judgment in the action ("Judgment"). The
<br />Judgment affirmed the hearing officer's decision, in part, finding that OC Recycling Parties
<br />violated City Municipal Code section 18-156 as set forth in the Citation. The court, however,
<br />reduced the fine from $49,000 to $27,000 and conditionally stayed $26,500 of the $27,000 fine
<br />until October 31, 2021, at which time the $26,500 would be permanently stayed if OC
<br />Recycling Parties implemented the approved 2019 WQMP by that date. If OC Recycling
<br />Parties failed to implement the approved 2019 WQMP by October 31, 2021, the Judgment
<br />provided for an automatic lift of the temporary stay and the total fine of $27,000 would be
<br />owed by OC Recycling Parties.
<br />H. On or about September 7, 2021, OC Recycling Parties filed a notice of appeal of the Judgment
<br />decision ("Appeal") in the Fourth District Court of Appeal, Division Three, Appellate Court
<br />Case No. G060674 ("Court of Appeal").
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