SETTLEMENT AGREEMENT

AND MUTUAL RELEASE OF CLAIMS

This SettlementAgreementand Mutual Releaseof Claims ("Agreement") is enteredinto

betweenNorthern California River Watch ("NCRW") and the City of Rohnert Park ("City")
(collectively,the "Parties").

RECITALS

A. NCRW is a 501(c)(3) non-profit, public benefit corporationorganizedunder the

laws of the Stateof California.

B. City is a municipality organizedunder the laws of the State of California. City

operatesa wastewatercollectionsystem("Collection System") that servesthe its residentsand
businesses.The Collection Systemtransportswastewaterto the LagunaSubregionalWastewater
Collection,Treatment,Conveyance,Reuse,and DisposalFacilitiesoperatedby the City of Santa
Rosa.

C. On June6,2005 NCRW providedCity with a Notice of Violationsand Intentto

File Suit ("Notice") under Section505 of the FederalWater Pollution Control Act (the "Act" or
the "CleanWaterAct"), 33 U.S.C.$ 1251et seq.

D. On November 10, 2005 NCRW providedthe City with a Supplemental

Notice of
Violationsand Intentto File Suit Underthe Act ("SupplementalNotice").

E. NCRW and the City, through their authorized representatives,attended a

mediationfor this matteron May 15,2006.

F. At the conclusion of the mediation,NCRW's and the City's representatives

executeda "Stipulationfor Settlement"and "River Watch v. City of Rohnert Park Term Sheet".
The purposeof this Agreementis to memoiahze in more detail the terms of the settlement,but
with thoseMay 15,2006documents.
to be consistent

G. NCRW and the City, through their authorizedrepresentatives and without either
adjudicationof NCRW's claims or the City's admissionof any alleged violation or other
wrongdoing,have chosento resolve in full NCRW's allegationsin the Notice and Supplemental
Notice throughsettlementand to avoid the cost of litigation.

H. NCRW and the City have agreedthat it is in their mutual interestto enterinto this
Agreementsetting forth the terms and conditionsto resolveNCRW's allegationsset forth in the
Notice and SupplementalNotice.

AGREEMENT

For good and valuable consideration,the receipt and sufficiency of which is hereby
NCRW and the City herebyagreeas follows:
acknowledged,

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1. EFFECTIVE DATE. The Term "Effective Date," as used in this Agreement,shall
meanthe datethe Agreementhasbeenexecutedby both parties.

2. MEDIATION OUTCOME. The "Stipulationfor Settlement"and "River Watch v. City

of RohnertPark Term Sheet"from the May 15,2006 mediationare attachedheretoas Exhibit A
and incorporatedby referenceas though fully set forth herein. The Parties intend that the
Stipulation for Settlement,the Term Sheet, and this Agreement shall be read and interpreted
togetheras one document.

3. COMMITMENTS TO NCRW.

3.1 SupplementalEnvironmentalProject.City agreesto include a water quality study

as a componentof the City's anticipatedCreek RestorationPlan. One element of the water
quality study shall be a reasonablycomprehensiveand technicallycompetentanalysisof human
markersto determineif human wastewateris presentin waters of selectedsurfacewatercourses
in Rohnert Park. City shall use its best efforts to completethis analysis within 3 yearsof the
Effective Date. City agreesto utilize the results of the water quality study as a factor in
determiningfuture improvementsto and maintenanceof the Collection System. City shall invite
Michael Johnson,a researcheraffiliated with the University of California at Davis, to submit a
proposalto perform the water quality study. City shall provide River Watch the opportunityto
review and comment within 30 daysupon the water quality study proposal,and shall respondin
a like period of 30 days to any commentsor recommendations submittedby River Watch, prior
to final awardof the proposalto perform the study.

3.2 Protocols for RecordingCollection SystemOverflows. City will review and

improve overflow reporting in compliancewith the new State Water ResourcesControl Board
Wastewater DischargeRequirements, Order2006-0003,datedMay 2,2006 ("WDR"). Reports
will be availableto the public upon requestto the City Clerk and in the statedatabasedeveloped
in connection with the WDR requirements. City shall review and improve reporting in
accordance with the schedulein the WDR.

3.3 Mappingof CollectionSystem. City will prepareand provideits GIS map of the
Collection System within 6 months of the Effective Date. The map will show sewer lines,
creeks,parks and schools, and soil type information from the Soil ConservationService or
similar sources. The City shall use the map as a factor in determiningthe locationsfor its water
quality studyreferredto in Section3. 1 above.

3.4 Recommended Lateral ReplacementOrdinance. Within 12 months of the

Effective Date, City public works staff will prepare and submit for the City Council's
considerationa lateral replacementordinancerequiring an inspection of private sewer laterals
prior to the sale of property. The draft ordinancemay include a provision requiring repair of
inspectedlaterals, if and as necessary. City staffs presentationwill include a good faith,
balancedreport on the benefits of such a program and will not recommendagainstapproval.
of V&A ConsultingEngineersin the
Staff shall include in its presentationthe recommendations
Inflow & Infiltration Study commissionedby the City concerning such an ordinance, and
information about, and examplesof, the lateral ordinancesof other cities. City shall provide
River Watch the opportunityto review and commentwithin 30 daysupon City staffs report and

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934032v2 80078/0034
proposedordinance,and shall respondin a like period of 30 daysto River Watch'scommentsor
recommendations, prior to submitting the report and proposedordinanceto the City Council.
City shall provide notice to River Watch in the manner set forth in Section 7.4 below 7 days
prior to any scheduledCity Council meetingwherethis item will be considered.

3.5 Video InspectSelectSectionsof the CollectionSvstem. Within 5 years,City will

visually documentwith closed circuit television ("CCTV"), the following portions of the
Collection System: (a) those portions that either crosscreeks,streams,or waters of the United
States,or are within 200 feet of such creeks,streams,or waters;and (b) those portions that are
within 100 feet of sites listed as "Open" using the Site/FacilityFinder Tool on the California
StateWater ResourcesControl Board GeoTrackerwebsite.

3.6 Attorneys'Fees. City shallpay NCRW the sum of $40,000within l5 daysof the
Effective Date. The City shall issue a single check in that amount payable to "Northern
California River Watch," and this shall constitutefull paymentfor all costs,including attorney's
fees, incurred by NCRW in this matter, up to and including the Effective Date of this
Agreement.

3.7 MediationCosts. City shall pay66 o/oof thecostsof mediation,and NCRW shall
pay34Yoof the costsof mediation.The partieswill paythosecostsdirectlyto JAMS.

3.8 Press Release. NCRW and City agreejointly to prepare any press release
associated with this Agreement,within 10 daysof the EffectiveDate.The Partieswill make no
public statementabout the settlement,or the substanceof this matter, except in that joint press
release.

4. NO ADMISSION OR FINDING. Neitherthis Agreementnor any paymentpursuantto

the Agreement shall constitute evidence or be construed as a finding, adjudication, or
acknowledgmentof any fact, law or liability, nor shall it be construedas an admissionof
violation of any law, rule or regulation. However,this Agreementand/or any paymentpursuant
to the Agreementmay constituteevidencein actionsseekingcompliancewith this Agreement.

5. MUTUAL RELEASE OF LIABILITY. In consideration of the matterssetforth in this

Agreement,and except as otherwise provided herein, the Parties hereby forever and fully
releaseeach other and their respectivesuccessors. assigns,officers, agents,employees,and all
persons,firms and corporationshaving an interestin them, from any and all claims and demands
of any kinds, nature, or description whatsoever,and from any and all liabilities, damages,
injuries, actions or causesof action, either at law or in equity, which the Partieshave against
each other arising from NCRW's allegations and claims as set forth in the Notice and
SupplementalNotice.

6. COVENANT NOT TO SUE. For the period beginning on the Effective Date and
endingsevenyearsafter the Effective Date, NCRW covenantsnot to suethe City for any matter
regarding the City's compliance with the Act, the WDR, or other matters relating to the
Collection System.This covenantis binding on NCRW, its officers, executivestaff, membersof
its governingboard, and any organizationunder the control of NCRW, its officers, executive
staff, or membersof its governing board. NCRW further agreesthat NCRW will not support

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other lawsuits, by providing financial assistance,personneltime or other affrrmative actions,
againstCity that may be proposedby other groupsor individualswho would challengethe City's
compliancewith the Act, the WDR, or other mattersrelatingto the Collection System.

7. GENERAL PROVISIONS.

7.1 Construction. The languagein all parts of this Agreement shall be construed
accordingto its plain and ordinary meaning,exceptas to thoseterms defined by law, in the Act,
or specificallyherein.

7.2 Choice of Law. This Agreementshall be governedby the laws of the United
States,and whereapplicable,the laws of the Stateof California'

7.3 Severabiliry. In the event that any provision, section, or sentenceof this
provisionsshall
the validity of the enforceable
Agreementis held by a court to be unenforceable,
not be adverselyaffected.

7.4 Correspondence. All notices required herein or any other correspondence

pertainingto this Agreementshall be sentby regular,certified,or overnightmail as follows to:

NCRW: JackSilver,Esq'
Law Ofhce of JackSilver
PO Box 5469
SantaRosa,CA 95402-5469

City: Michelle MarchettaKenyon,Esq'

City Attorney for the City of RohnertPark
McDonoughHolland& Allen PC
1901HarrisonStreet,9th Floor
Oakland,CA 94612-3501

Notifications of communicationsshall be deemedsubmitted on the date that they are

postmarkedand sent by first-class mail or depositedwith an overnight mail/delivery service.
Any changeof addressor addressesshall be communicatedin the manner describedabove for
giving noii."r. In addition, the Partiesmay agreeto transmit documentselectronicallyor by
facsimile.

7.5 Counterparts. This Agreementmay be executedin any number of counterparts,

all of which togethershall constituteone original document. Telecopy,PDF, and/or facsimile
copies of original signature shall be deemed to be originally executed counterpartsof this
Agreement.

7.6 Modification of the Agreement. This Agreement,and any provisionsherein,may

not be changed,waived, dischargedor terminatedunlessby a written instrument,signedby the
Parties.

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 of this
7.7 Full Settlement. This Agreementconstitutesa futl and final settlement
has beenfreely and voluntarily
matter. It is exprestty.t"a"tttood and agfeedthat the Agreement
enteredinto by the Partieswith and upon adviceof counsel.
is intended
7.g IntegrationClause. This is an integratedagreement.This Agreement
to be a full and .o*ffi. rtutero"nt of the terms of the agreementbetweenthe Partiesand except
prior oral or written agreements
as provided in Section 2 exptesslysupersedesany and all
the subjectmatter of
covenanrs,representationsand warranties(expressor implied) concerning
this Agreement.
and the
7.9 Negotiated Agreement. The Parlies have negotiatedthis Agreement,
doctrineof contraproferentumdoesnot apply'

7.10 Authority. The undersignedrepresentatives for NCRW and City each certiff that
enter into the terms and
he/she is fully authorized by the pa.iy *ho- he/she representsto
conditionsof this Agreement.

The Partiesherebyenterinto this Agreement'

CITY:
CitYofjo?r-nertPark

MaVOr / trr ),.-.1 :-

ffi06-i93 adopted
Apploved as'to FoPP: by the City CounciL,gn JulY ll, 2006
It ! t:.,ri /-:'/i''. Aitesti . ? .- t!/
/ ,t i ' ,r , . r / ( , lilil't/rt iliLi | , , , ' "..,''
Judy Hauf
ichelleMarchettaK9!Y9{11y-A!9I
NCRW:
RIVERWArcH
rygnrnEnNCAL/FOBNIA
'-l - /fttq,:o
oate: 6 ,2006
of the Board of
Approvedas to Form:
' ' \ ^ - L ", L ; +. /u.u(,
attorneyfor NCRW

ANDMuruAL RELEASE
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