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RES 1722 07/08/2025 ZunkerT f X 01 s "City of Choice" III of -i1) It III I cll`IZISMIN A RESOLUTION OF THE CITY OF CHIOLO, TEXAS, APPROVING A SETTLEMENT AGREEMENT RELATED TO CAUSE NO. 24 -2143 -CV -E, DARRYL A. ZUNKER AND LANA ZUNKER V. CITY OF CIBOLO; AND AUTHORIZING ANY ADDITIONAL ACTIONS REASONABLY NECESSARY THEREWITH; PROVIDING A SEVERABILITY CLAUSE AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, the City of Cibolo, by Ordinance 1421 disannexed property owned by Darryl and Lana Zunker on November 14, 2023; and, WHEREAS, Texas Local Government Code Section 43.148 requires a municipality to proportionately refund property taxes collected from a disannexed property within 180 days following disannexation, based upon a methodology developed by the municipality; and, WHEREAS, on August 20, 2024, Cause No. 24 -2143 -CV -E was filed in Guadalupe County seeking a Declaratory Judgment and Writ of Mandamus alleging the City failed to adhere to the statutory requirements related to disannexation and the refund of property taxes; and, WHEREAS, the City, under former legal counsel, filed a Plea to the Jurisdiction and Motion to Dismiss on October 21, 2024; and, WHEREAS, on January 21, 2025 the Court denied the Plea to the Jurisdiction and Motion to Dismiss; and, WHEREAS, on February 13, 2025 a Notice of Interlocutory Appeal was filed to preserve the right to appeal the denial of the Plea to the Jurisdiction; and, WHEREAS, under advice new legal counsel, the appeal was abated and the matter set for mediation of June 25, 2025; and, WHEREAS, the Parties have reached an agreement to resolve the claims and causes of action asserted in the lawsuit; and WHEREAS, the City Council hereby finds that acceptance and approval of the proposed Mediated Settlement Agreement is in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS THAT: Section 1. The foregoing recitals are hereby found to be true and correct and hereby adopted by the City Council and made a part hereof for all purposes as findings of fact. Section 2. The City Council approves the Mediated Settlement Agreement attached as Exhibit A to this Resolution, which is fully incorporated herewith for all purposes. Section 3. The City Manager, or his designee, is hereby authorized to execute the Settlement Agreement, on behalf of the City, and such other documents and instruments reasonably necessary to conclude the transaction. Section 4. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 5. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 6. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 7. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 8. The Settlement Agreement will be effective upon approval of this Resolution. APPROVED AND ADOPTED on this the $ day of July 2025. Mark Allen May-- ATTES /T 'C 99of .L Peggy Cimics, TRMC City Secretary TO DENTON NAVARRO BPDRIGUEZ BERNA SANTEE & ZECH, FGlInterim City Attorney Wfl-11l:11w, Settlement Agreement CAUSE NO.24-2143-CV-E DARRYL A. ZUNKER UZ113 WR k!EVA 1J ,IN910 V CITY OF CIBOLO IN THE DISTRICT COURT 456TH JUDICIAL DISTRICT GUADALUPE COUNTY, TEXAS COMPREHENSIVE SETTLEMENT AND RELEASE AGREEMENT The parties to this Settlement and Release Agreement are as follows: "PLAINTIFFS" - refers to DARRYL A. ZUNKER AND LANA ZUNKER (collectively referred to as "PLAINTFFS"), as well as their heirs, assigns, devisees, administrators and executors; "CITY DEFENDANT" - refers to and includes the CITY OF CIBOLO, TEXAS, a governmental entity organized and existing under the laws of the State of Texas, including its past and present UNKNOWN EMPLOYEE(S) OF THE CITY OF CIBOLO, agents, officials, council members, employees, city manager, representatives, employees, and predecessors and successors in interest, as well as their heirs, assigns, devisees, administrators and executors (hereinafter referred to as "DEFENDANT"); PLAINTIFFS and the CITY DEFENDANT shall be referred to jointly as the "PARTIES." RECITALS Whereas, PLAINTIFFS filed a lawsuit styled and numbered as indicated in the caption above against DEFENDANT for alleged damages suffered by PLAINTIFFS in connection with a request for disannexation of land owned by Plaintiffs, various tort and other claims; Whereas, in addition to a general denial, DEFENDANT raised certain legal defenses to liability and has filed an appeal; Whereas, DEFENDANT dispute liability in this lawsuit; however, PLAINTIFFS and DEFENDANT desire to resolve this dispute at the minimum of costs and disruption to the PARTIES; and, Whereas, the PARTIES entered into a Mediation Settlement Agreement on June 25, 2025, subject to approval by the City Council for the City of Cibolo and providing for an additional Comprehensive settlement and Release Agreement Page I Darryl A. Zunker and Lana Zunker v. City of Cibolo release to be executed by the PARTIES; and Whereas, the PARTIES desire to enter into this Settlement and Release Agreement in full settlement and discharge of all actual claims and all claims that could have been raised against DEFENDANT, which specifically excluded herein by reason of allegations described or which could have been described in PLAINTIFFS' pleadings, and the foregoing recitals; NOW, THEREFORE, the PARTIES agree as follows: 1.0 Release and Discharge by Plaintiffs A. In consideration of the payment set forth in Section 2.0 (A), PLAINTIFFS hereby completely release and forever discharge DEFENDANT from any and all past and present claims asserted in Cause Number 24 -2143 -CV -E filed in Guadalupe County, Texas, and claim existing until the date of closing ofthis settlement, including demands, obligations, actions, causes of action, rights, damages, costs, losses of use, taxes, fees, expenses and compensation of any nature whatsoever, whether based on a tort, contract, statutory recovery under the disannexation statute, or other theory of recovery on account of, or may in any way grow out of the allegations described in PLAINTIFFS' current pleading and the recitals above, including without limitation, any and all known or unknown claims alleged by PLAINTIFFS. B. This release and discharge shall apply to DEFENDANT'S past, present and future officers, officials, directors, attorneys, agents, representatives, employees, subsidiaries, affiliates, partners, predecessors, successors in interest and assigns; as well as DEFENDANT'S insurers and risk pools, their respective employees and all other persons, firms or corporations with whom any of the former have been, are now, or may hereafter be affiliated. C. This release on the part of PLAINTIFFS shall be a fully binding and complete settlement by the PLAINTIFFS, including their heirs, assigns and successors. D. PLAINTIFFS acknowledge and agree that the release and discharge set forth above is a general release. PLAINTIFFS expressly waive and assume the risk of any and all claims for damages which exist as of this date, but of which the PLAINTIFFS do not now know or suspect to exist, for any reason whatsoever, and which, if known, would materially affect PLAINTIFFS' decision to enter into this Settlement and Release Agreement. E. PLAINTIFFS further agree to accept payment of the sums specified herein as a complete compromise of matters involving disputed issues of law, fact and damages. It is understood and agreed by the PARTIES that this settlement is a compromise of a disputed claim, and the payment is not to be construed as an admission of liability on the part of the DEFENDANT by whom liability is expressly denied. F. PLAINTIFFS further agree that upon payment of the specified sums, they shall cooperate in the preparation, execution and filing of the necessary motion to dismiss with prejudice any and all claims, counterclaims and/or motions for sanctions contained or which could have been Comprehensive Settlement and Release Agreement Page 2 Darryl A. Zunker and Lana Zunker v. City of Cibolo contained in the lawsuit styled and numbered as indicated in the caption above. G. PLAINTIFFS warrant and represent that they will pay, discharge, settle or retire any and all debts, liens, subrogation rights or other debts or claims encumbering their respective properties to be conveyed to the DEFENDANT from the proceeds of this settlement and execute any documents reasonably necessary to effectuate same. In consideration for same, DEFENDANT agrees to release PLAINTIFFS from any and all tax liabilities asserted as a result of the disannexation. H. This settlement covers and includes all claims, causes of action, damages, or injuries, whether known or unknown and whether asserted or not. PLAINTIFFS warrant and represent that they will execute formal settlement documents and motion to dismiss with prejudice on forms prepared by DEFENDANT, provided PLAINTIFFS have a right to review said forms. I. PLAINTIFFS, except as to accountants, tax advisors, legal advisors, lienholder or as otherwise required by law, agree to confidentiality regarding the basis, facts and documents, settlement regarding their lawsuit styled and numbered as indicated in the caption above against the DEFENDANT, and agree not to disparage each other in any way. 2.0 Payment and Other Consideration A. DEFENDANT agrees that within fourteen (14) days of receipt of notice from PLAINTIFFS' counsel to DEFENDANT' counsel that the PLAINTIFFS have executed this Settlement and Release Agreement and warranty deeds, DEFENDANT shall cause to be paid the total sum of FIFTY THOUSAND DOLLARS AND NO/100 DOLLARS ($50,000.00), at a closing to be scheduled by the PARTIES' counsel. Settlement checks will be made payable to Farrimond, Castillo & Bresnahan, P. C. in trust for Darryl and Lana Zunker (Tax ID No. 27-2288265), to be reported per form W-9. B. Payment in the foregoing amount and other consideration are intended to cover any and all claims for damages currently alleged by PLAINTIFFS or which could have been alleged, as well as any and all claims for attorney's fees, including attorney's fees expended by Farrirnond, Castillo & Bresnahan, P.C., and costs of court. C. Notwithstanding any of the above paragraphs, it is specifically and expressly agreed and understood that PLAINTIFFS specifically agree to pay out of the consideration stated above any and all claims of the Government of the United States of America, any state, or any other political subdivision of either of them, any other individual or entity which has now or will in the future assert claims or liens for any and all property, tax, and all other expenses of any kind or nature whatsoever that arose prior to the date of execution of this document, incurred or to be incurred, by or on behalf of PLAINTIFFS, as a result of, or in any way resulting from, the settlement made the basis of this agreement. It is also specifically and expressly understood that DEFENDANTS shall owe no duty to PLAINTIFFS to counsel them regarding the management or investment of any sum of money paid to them in accordance with this agreement. It is further specifically and expressly agreed and Comprehensive Settlement and Release Agreement Page 3 Darryl A. Zunker and Lana Zunker v. City of Cibolo understood that PLAINTIFFS will pay out of the consideration stated above any and all attorney's fees, expenses, and costs incurred in this matter. 3.0 Acknowledgment of Settlement Terms & Conditions A. Any and all claims asserted or which could be asserted by and between the PARTIES in the above referenced causes of action and/or as a result of the allegations contained therein through the date of execution and final funding, and those claims asserted therein are hereby released upon execution of this document. B. The Parties to be released include the DEFENDANTS , all officers, officials, directors, representatives, agents, employees, beneficiaries, successors and assigns, attorneys, insurance carriers and their respective agents, both former and current. C. PLAINTIFFS represent they consulted with their attorneys before executing this Settlement and Release Agreement. 4.0 Delivery of Dismissal with Prejudice A. Upon execution of this Settlement and Release Agreement, PLAINTIFFS shall cooperate in filing the necessary paperwork in the in the lawsuit styled and numbered as indicated in the caption above, to secure a dismissal of this litigation with prejudice. DEFENDANTS agree to dismiss its appeal pending in the Fourth Court of Appeals styled 04 -25 -00114 -CV. B. PLAINTIFFS hereby authorize Counsel for DEFENDANT to file the necessary dismissal documents with the Court and secure an order dismissing this lawsuit with prejudice. 5.0 Warranty of Capacity to Execute Agreement PLAINTIFFS represent, warrant and contract that no otherperson, attorney, law firm or entity has, or has had, any interest in the properties to be conveyed to the DEFFENDANT, claims, demands, obligations, or causes of action referred to in this Settlement and Release Agreement, except as otherwise set forth herein or that if any such interest exists, it will be fully satisfied with these settlement proceeds; that PLAINTIFFS have the sole right and exclusive authority to execute this Settlement and Release Agreement and receive the sums specified in it; and that PLAINTIFFS have not sold, assigned, transferred, conveyed or otherwise disposed of any interest in the properties to be conveyed to the DEFENDANT or the claims, demands, obligations or causes of action referred to in this Settlement and Release Agreement. 6.0 Governing Law This Settlement and Release Agreement shall be construed and interpreted in accordance with the laws of the State of Texas. Venue shall be proper in Guadalupe County, Texas. 7.0 Additional Documents Comprehensive Settlement and Release Agreement Page 4 Darryl A. Zunker and Lana Zunker v. City of Cibolo The PARTIES agree to cooperate fully and execute any and all supplementary documents and to take all additional action necessary or appropriate to give full force and effect to the basic terms and intent of this Settlement and Release Agreement. 8.0 Effectiveness This Settlement and Release Agreement shall become effective immediately following execution by each PARTY. APPROVED AS TO FORM AND CONTENT: STATE OF TEXAS COUNTY OF GUADALUPE e DR — ZUa!-K... 6L'. k /- This Settlement and Release Agreement was acknowledged before me by DARRYL A. ZUNKER on the kl'1n day ofJdk)l 2025. INE MIC Notary Public, State of Texa Comm. Expires 0&26.20292028 t D 1 6059443 NOTARY PUBLIC, STATE OF TEXAS This Settlement and Release Agreement was acknowledged before me by LANA ZUNKER on the_Aj!�_day of �uly , 2025. Comprehensive Settlement and Release Agreement Page 5 Darryl A. Zunker and Lana Zunker v. City of Cibolo CAROLINE MICHELLE ORANADOS ZIP,- cNotary Public, State of Texas Comm. Expires 08-28.2028 (A„far ea] A&jjq ID 135058443 APPROVED AS TO FORM AND CONTENT: STATE OF TEXAS COUNTY OF GUADALUPE cm4fr + NOTARY PUBLIC, STATE OF TEXAS WAYNEJREED CITY MANAGER FOR CITY OF CIBOLO This Settlement and Release Agreement was acknowledged before me by WAYNE REED on the day of 'TFl Y' 2025. �..� •v, PEGGY CIMICS i Notary ID #11311804 My Co Expires Augustgust 7, 7, 2 2026 (Affix Notary Seal Above) Comprehensive Settlement and Release Agreement Darryl A. Zunker and Lana Zunker v. City of Cibolo NOTARY PUBLIC, STATE OF TEXAS Page 6