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SETTLEMENT AGREEMENTAND MUTUAL RELEASE OF CLAIMS

This SettlementAgreementand Mutual Release f Claims ("Agreement") is entered ntobetweenNorthern California River Watch ("NCRW") and the City of RohnertPark ("City")(collectively,he"Parties").RECITALS

A. NCRW is a 501(c)(3)non-profit,public benefit corporationorganizedunder helaws of the Stateof California.B. City is a municipality organizedunder he laws of the Stateof California. Cityoperates wastewater ollectionsystem "Collection System") that serves he ts residents ndbusinesses. he Collection System ransportswastewatero the LagunaSubregionalWastewater

Collection,Treatment,Conveyance,Reuse,and DisposalFacilitiesoperated y the City of SantaRosa.C. On June6,2005 NCRW providedCity with a Noticeof Violationsand ntent oFile Suit ("Notice")underSection505 of the FederalWaterPollutionControlAct (the"Act" orthe CleanWaterAct"), 33 U.S.C.$ 1251 t seq.D. On November10,2005NCRW provided he City with a Supplemental oticeofViolations nd ntent o File Suit Under he Act ("SupplementalNotice").E. NCRW and the City, through their authorized representatives, ttended amediationor this matteron May 15,2006.F. At the conclusionof the mediation,NCRW's and the City's representativesexecuted "Stipulation or Settlement"and "River Watchv. City of RohnertPark Term Sheet".The purposeof this Agreement s to memoiahze in more detail the terms of the settlement, utto be consistent ith thoseMay 15,2006documents.G. NCRW and the City, through heir authorized epresentatives nd without eitheradjudication f NCRW's claims or the City's admissionof any allegedviolation or otherwrongdoing,havechosen o resolve n full NCRW's allegationsn the Notice and SupplementalNotice throughsettlement nd o avoid he costof litigation.H. NCRW and he City have agreed hat t is in their mutual nterest o enter nto thisAgreement etting orth the terms and conditions o resolveNCRW's allegations et forth in theNotice and Supplemental otice.

AGREEMENTFor good and valuable consideration, he receipt and sufficiency of which is herebyacknowledged, CRW and he City herebyagreeas ollows:

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1. EFFECTIVE DATE. The Term "Effective Date," as used in this Agreement,shallmean hedate heAgreementhasbeenexecuted y bothparties.2. MEDIATION OUTCOME. The "Stipulation or Settlement"and "River Watch v. Cityof RohnertParkTerm Sheet" rom the May 15,2006 mediationare attached eretoas Exhibit Aand incorporatedby referenceas though fully set forth herein. The Parties ntend that theStipulation or Settlement, he Term Sheet, and this Agreement shall be read and interpretedtogether sone document.3. COMMITMENTS TO NCRW.

3.1 Supplemental nvironmentalProject.City agreeso include a water quality studyas a componentof the City's anticipatedCreek RestorationPlan. One elementof the waterqualitystudyshall be a reasonably omprehensive nd technicallycompetentanalysisof humanmarkers o determine f humanwastewater s presentn watersof selected urfacewatercoursesin RohnertPark. City shall use its best efforts to complete his analysiswithin 3 yearsof theEffective Date. City agrees o utilize the results of the water quality study as a factor indetermininguture mprovements o andmaintenance f the Collection System. City shall nviteMichael Johnson,a researcher ffiliated with the University of California at Davis, to submit aproposal o perform the water quality study.City shall provide River Watch the opportunity oreview andcommentwithin 30 daysuponthe waterqualitystudyproposal,andshallrespond na like periodof 30 days o any commentsor recommendationsubmittedby River Watch,priorto final awardof theproposal o perform he study.

3.2 Protocols or RecordingCollection SystemOverflows. City will review andimprove overflow reporting n compliancewith the new StateWater ResourcesControl BoardWastewater ischargeRequirements, rder2006-0003, atedMay 2,2006 ("WDR"). Reportswill be available o the public upon request o the City Clerk and n the statedatabase evelopedin connectionwith the WDR requirements. City shall review and improve reporting inaccordanceith the schedulen the WDR.

3.3 Mappingof CollectionSystem. City will prepare ndprovide ts GIS map of theCollection Systemwithin 6 months of the Effective Date. The map will show sewer ines,creeks,parks and schools,and soil type information from the Soil ConservationServiceorsimilar sources.The City shall use he map as a factor n determining he locations or its waterqualitystudy eferred o in Section3. 1 above.

3.4 RecommendedLateral ReplacementOrdinance. Within 12 months of theEffective Date, City public works staff will prepare and submit for the City Council'sconsiderationa lateral replacementordinance equiringan inspectionof private sewer ateralsprior to the saleof property. The draft ordinancemay include a provision requiringrepair ofinspected aterals, if and as necessary. City staffs presentationwill include a good faith,balanced eport on the benefits of such a programand will not recommendagainstapproval.Staff shall nclude n its presentationhe recommendationsf V&A ConsultingEngineersn theInflow & Infiltration Study commissionedby the City concerning such an ordinance,andinformation about, and examplesof, the lateral ordinances f other cities. City shall provideRiver Watch the opportunity o review and commentwithin 30 daysupon City staffs report andPage 2 -- SerrleN4eNrAcnEEvENTANDMurual RELEASE934032v20078/0034

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proposed rdinance, nd shall respond n a like periodof 30 days o River Watch'scomments rrecommendations, rior to submitting the report and proposedordinance o the City Council.City shall provide notice to River Watch in the mannerset forth in Section7.4 below 7 daysprior to anyscheduledCity Council meetingwhere his item will be considered.

3.5 Video InspectSelectSections f the CollectionSvstem.Within 5 years,City willvisually documentwith closed circuit television("CCTV"), the following portions of theCollection System: (a) thoseportions hat eithercrosscreeks,streams,or watersof the UnitedStates, r arewithin 200 feet of such creeks,streams, r waters;and (b) thoseportions hat arewithin 100 feet of sites i sted as "Open"using he Site/FacilityFinder Tool on the CaliforniaStateWater Resources ontrol BoardGeoTrackerwebsite.

3.6 Attorneys'Fees. City shallpayNCRW the sum of $40,000within l5 daysof theEffective Date. The City shall issue a single check in that amount payable to "NorthernCaliforniaRiver Watch," and this shall constitute ull payment or all costs, ncluding attorney'sfees, incurred by NCRW in this matter, up to and including the Effective Date of thisAgreement.3.7 MediationCosts. City shallpay66 o/oof thecostsof mediation, ndNCRW shallpay34Yo f the costs f mediation. hepartieswill pay hose osts irectly o JAMS.3.8 Press Release. NCRW and City agree ointly to prepareany pressreleaseassociated ith this Agreement,within 10 daysof the EffectiveDate.The Partieswill makenopublic statement bout he settlement, r the substance f this matter,except n that oint pressrelease.

4. NO ADMISSION OR FINDING. Neither his Agreement or anypayment ursuantothe Agreement shall constitute evidence or be construed as a finding, adjudication,oracknowledgment f any fact, law or liability, nor shall it be construedas an admissionofviolation of any law, rule or regulation. However, his Agreementand/oranypaymentpursuantto theAgreementmay constituteevidence n actionsseeking ompliancewith this Agreement.5. MUTUAL RELEASE OF LIABILITY. In considerationf the matters et orth n thisAgreement,and except as otherwise provided herein, the Parties hereby forever and fullyreleaseeach other and their respectivesuccessors. ssigns, fficers, agents,employees, nd allpersons,irms and corporationshavingan interest n them, rom any and all claimsand demandsof any kinds, nature, or description whatsoever,and from any and all liabilities, damages,injuries,actionsor causesof action, either at law or in equity, which the Partieshave againsteach other arising from NCRW's allegations and claims as set forth in the Notice andSupplemental otice.6. COVENANT NOT TO SUE. For the period beginning on the Effective Date andendingsevenyearsafter the Effective Date,NCRW covenants ot to sue he City for any matterregarding he City's compliance with the Act, the WDR, or other matters relating to theCollectionSystem.This covenant s bindingon NCRW, its officers, executivestaff, membersofits governingboard, and any organizationunder the control of NCRW, its officers,executivestaff, or membersof its governingboard. NCRW further agrees hat NCRW will not supportPage 3 --- SErrr-Err,rENrcnEpHaeNTNDMuruAL Relnese934032v20078/0034

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other lawsuits,by providing financial assistance, ersonnel ime or other affrrmative actions,againstCity that maybe proposedby othergroupsor individualswho would challengehe City'scompliancewith theAct, the WDR, or othermatters elating o theCollectionSystem.7. GENERAL PROVISIONS.

7.1 Construction. The language n all parts of this Agreement shall be construedaccordingo its plain and ordinary meaning,exceptas o those ermsdefinedby law, in the Act,or specificallyherein.7.2 Choice of Law. This Agreementshall be governedby the laws of the UnitedStates, ndwhereapplicable,he aws of the Stateof California'7.3 Severabiliry. In the event that any provision, section, or sentenceof thisAgreements held by a court o be unenforceable,he validityof the enforceablerovisions hallnot be adversely ffected.7.4 Correspondence. All notices required herein or any other correspondencepertaining o this Agreementshall be sentby regular, ertified,or overnightmail as ollows to:

NCRW: JackSilver,Esq'Law Ofhceof JackSilverPOBox 5469SantaRosa,CA 95402-5469City: Michelle MarchettaKenyon,Esq'City Attorney or theCity of RohnertPark

McDonoughHolland& Allen PC1901HarrisonStreet, th FloorOakland,CA 94612-3501Notifications of communicationsshall be deemedsubmittedon the date that they arepostmarkedand sentby first-classmail or depositedwith an overnight mail/delivery service.Any changeof address r addresseshall be communicatedn the mannerdescribedabove orgiving noii."r. In addition, the Partiesmay agree o transmit documentselectronicallyor byfacsimile.7.5 Counterparts. This Agreementmay be executed n any number of counterparts,

al l of which togethershall constituteone original document. Telecopy,PDF, and/or facsimilecopiesof original signature shall be deemed o be originally executedcounterpartsof thisAgreement.7 6 Modification of the Agreement. This Agreement, nd anyprovisionsherein,maynot be changed,waived,discharged r terminatedunlessby a written instrument,signedby theParties.

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7.7 Full Settlement. This Agreementconstitutesa futl and final settlementof thismatter. It is exprestty.t"a"tttood andagfeed hat the Agreementhasbeen reelyandvoluntarilyenterednto by the Partieswith anduponadviceof counsel.7.g IntegrationClause. This is an integrated greement.This Agreement s intended

to be a full and o*ffi. rtutero"ntof the termsof the agreement etween he Partiesandexceptas provided in Sectio 2 exptesslysupersedes ny and all prior oral or written agreementscovenanrs,epresentations nd warranties express r implied) concerning he subjectmatterofthis Agreement.

7.9 Negotiated Agreement. The Parlieshave negotiated his Agreement,and thedoctrineof contraproferentumdoesnot apply'7.10 Authority. The undersignedepresentativesor NCRW andCity eachcertiff thathe/she s fully authorizedby the pa.iy *ho- he/sherepresents o enter into the terms andconditions f thisAgreement.The Partiesherebyenter nto this Agreement'

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CITY: CitYofjo?r-nert ark

M a V O r / t r r ) , . - . 1 : -f f i06 - i93 adoptedby the Ci t y Counc iL ,gn Ju lY l l , 2006Ai tes t i . ? . - t ! / " . . , ' 'Judy Hauf

Applovedas'toFoPP:I t ! t : . , r i / - : ' / i ' ' ./ , i ' , , . r / ( , l l l t ri ' / t i i iL | , , , 'ichelleMarchetta 9!Y9{11y-A!9INCRW: rygnrnEnNCAL/FOBNIAIVERWArcH/fttq,:oate: '- l - 6 ,2006 of theBoardofApprovedas o Form:' ' \ ^- L" L; +. /u .u( ,

attorney or NCRW