SETTLEMENT AGREEMENT BETWEEN

THE UNITED STATES AND THE CITY OF BALTIMORE

in

United States v. City of Baltimore,

No. 09-cv-1049 (D. Md.); DJ# 204-35-257

1. BACKGROUND
   1. On April 23, 2009, the United States filed an action in the U.S. District Court for the District of Maryland, United States v. City of Baltimore, No. 09-cv-1049, alleging that the City violated Title II of the Americans with Disabilities Act (“ADA”), 42 U.S.C. §§12131-12134, and its implementing regulation.
   2. On February 29, 2012, the U.S. District Court issued an Opinion and Order granting the United States’ Motion for Partial Summary Judgment, and denying the City’s Motion for Partial Summary Judgment.
   3. On June 18, 2012, the City amended its Zoning Code via Council Bill 12-0055. On September 6, 2012, the parties jointly filed a letter with the Court explaining the legislative intent of the Bill and amended Zoning Code.
   4. The February 29, 2012 Court ruling did not resolve the United States’ claims of discrimination as applied to two individual residential substance abuse treatment programs, Tuerk House, Inc. and Second Genesis, Inc. The City and the United States have reached an agreement that it is in the parties’ best interests, and the public interest, to resolve these remaining claims on mutually agreeable terms without further litigation. The United States agrees that there are no remaining individual claims for damages by the other entities named in the Complaint, Gaudenzia, Inc., and Powell Recovery Center.
   5. The City contends that it has not violated the ADA or any other federal law through its zoning laws or practices.
   6. The parties agree that, as of the date of the approval of this settlement agreement by the Baltimore City Board of Estimates, litigation is not “reasonably foreseeable” concerning the matters described in paragraph one. To the extent that either party previously implemented a litigation hold to preserve documents, electronically stored information (ESI), or things related to the matters described in paragraph one, the party is no longer required to maintain such a litigation hold.
   7. In consideration of, and consistent with, the terms of this Settlement Agreement, the United States agrees to not pursue further investigation or further legal proceedings in United States v. City of Baltimore, No. 09-cv-1049, including any appeal of the Court’s rulings, except as provided in paragraph ten below.
2. Relief
   8. The City will pay $50,000 to Baltimore Substance Abuse Systems, Inc., with written instruction to pay $30,000 to Second Genesis, Inc., 8611 Second Avenue, Silver Spring, MD 20910; and $20,000 to Tuerk House, Inc., 730 Ashburton St., Baltimore MD 21216. The payments will be made in accordance with Baltimore Substance Abuse Systems, Inc.’s ordinary practices except that Second Genesis and Tuerk House will be free to expend the funds for any purpose within the scope of their drug treatment missions, such as patient care or capital expenses. Second Genesis and Tuerk House will submit to Baltimore Substance Abuse Systems, Inc. invoices or other evidence to verify that the funds were so expended. The City will issue the funds to the Baltimore Substance Abuse Systems, Inc. within 60 days of the approval of this settlement agreement by the Baltimore City Board of Estimates. The City will submit this settlement agreement to the Board of Estimates within two weeks of receiving the executed agreement and signed releases (attached as Exhibit 1) from Second Genesis and Tuerk House. The City will send counsel for the United States a copy of the transmittal letter, transmittal notice, or other proof of payment sent to Second Genesis and Tuerk House. This settlement agreement is not effective until, and is contingent upon, approval by the Board of Estimates.
   9. The City of Baltimore will not retaliate against Tuerk House or Second Genesis in violation of 42 U.S.C. § 12203.
3. Implementation and Enforcement
   10. The United States may review compliance with this Settlement Agreement and may enforce this Settlement Agreement if the United States believes that it has been violated. If the United States believes that this Settlement Agreement has been violated, it will promptly notify the City and the parties will attempt to resolve the concern in good faith. The United States will give the City thirty (30) days after notification to cure the violation, prior to instituting any action with the Court.
   11. Failure by the United States to enforce any provision of this Settlement Agreement will not be construed as a waiver of its right to enforce other provisions of this Settlement Agreement.
   12. This Settlement Agreement constitutes the entire agreement between the parties relating to United States v. City of Baltimore, No. 09-cv-1049 (D. Md.), and Department of Justice No. 204-35-257, and no other statement, promise, or agreement, either written or oral, made by any party or agents of any party, that is not contained in this written Settlement Agreement, including its attachments, will be enforceable. This Settlement Agreement does not purport to remedy any other potential violations of the ADA or any other federal law. This Settlement Agreement does not affect the City’s responsibility to comply with the ADA.
   13. The individuals signing this Settlement Agreement represent they are authorized to bind the parties to this Settlement Agreement.
   14. This Settlement Agreement shall be binding on the City, its agents and employees.
   15. Contemporaneously with the approval of the Baltimore City Board of Estimates of this Agreement, the parties shall file a Notice of Stipulated Dismissal with prejudice with the United States District Court for the District of Maryland, in substantially the same form as the attached Exhibit 2.
   16. All notices, demands, or other communications to be provided pursuant to this Settlement Agreement shall be in writing and delivered by fax or email or overnight delivery to the following persons and addresses (or such other persons and addresses as any Party may designate in writing):