Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_02-cv-00442/USCOURTS-caed-2_02-cv-00442-18/pdf.json

Nature of Suit Code: 893
Nature of Suit: Environmental Matters
Cause of Action: 00:0000 Cause Code Unknown

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1.

Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

EDMUND G. BROWN JR.

Attorney General of the State of California

JANET GAARD

 Acting Chief Assistant Attorney General

THEODORA BERGER

 Senior Assistant Attorney General

SALLY KNOX

 Supervising Deputy Attorney General

TIMOTHY E. SULLIVAN (S.B. # 197054)

 Deputy Attorneys General

1515 Clay Street, 20th Floor

P.O. Box 70550

Oakland, CA 94612-0550

Telephone: (510) 622-2100

Fax: (510) 622-2270

Attorneys for Plaintiff

CALIFORNIA DEPARTMENT OF TOXIC

SUBSTANCES CONTROL

UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

CALIFORNIA DEPARTMENT OF TOXIC

SUBSTANCES CONTROL, 

Plaintiff,

v.

CITY OF CHICO, CALIFORNIA, et al.,

Defendants.

Case No. CIV. S-02-0442 LKK DAD

SETTLEMENT AGREEMENT AND

CONSENT DECREE BETWEEN

DTSC, SUNSET VIEW CEMETERY

ASSOCIATION, JOHN PEDEN,

LORENA PEDEN, PEDEN

ENTERPRISES, INC., METCALF &

EDDY, INC., AND CHICO UNIFIED

SCHOOL DISTRICT

INTRODUCTION

Plaintiff, the California Department of Toxic Substances Control (“DTSC”), filed an

amended complaint on December 3, 2002, (the “Complaint”) in the United States District Court

for the Eastern District of California (the “Court”), pursuant to the Comprehensive

Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. §§ 9601 et

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2.

Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

seq., and California state law governing the release of hazardous substances, and nuisance. This

Consent Decree embodies the settlement reached between DTSC and defendants John Peden,

Lorena Peden, and Peden Enterprises, Inc., (collectively referred to herein as “the Pedens”),

Sunset View Cemetery Association, Chico Unified School District, and Metcalf & Eddy, Inc.,

all of which are collectively referred to herein as “Settling Defendants.”

The Court, on the motion and with the consent of DTSC and the Settling Defendants,

hereby ORDERS, ADJUDGES, AND DECREES as follows:

1. DEFINITIONS

A. All terms used in this Consent Decree that are defined in section 101 of

CERCLA, 42 U.S.C. § 9601, shall have the same meaning set forth in that section.

B. “DTSC,” as used in this Consent Decree, shall mean DTSC, its

predecessors including, but not limited to, the Toxic Substances Control Program of the State of

California Department of Health Services, and its successors.

C. “Chico Central Plume” means both the soil and groundwater existing in

the shallow, intermediate, and/or lower aquifers underlying the city of Chico mostly north of

Big Chico Creek that are contaminated with perchloroethylene and its breakdown products, the

area of which is roughly represented by Figure 2-1 of the “Draft Remedial Action Plan, Chico

Central Plume, Chico, California” dated March 1, 2006 (attached hereto as Exhibit A and

incorporated herein by this reference), and all locations where such contaminants may come to

be located.

D. “Response Costs,” as used in this Consent Decree, shall include all costs

of “removal,” “remedial action,” or “response” (as those terms are defined by section 101 of

CERCLA), incurred or to be incurred by DTSC in response to the release or threatened release

of hazardous substances at, in, or from the Chico Central Plume. Said term shall include, but

not be limited to, direct labor costs; contractor, consultant and expert costs; travel and any other

out-of-pocket expenses; the costs of identifying, developing evidence against, and pursuing

claims against persons or entities liable for the release or threatened release of hazardous

substances at, in, or from the Chico Central Plume; indirect costs; oversight costs; applicable

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3.

Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

interest charges; and attorneys' fees.

E. “Remedial Action Plan,” as used in this Consent Decree, shall mean a

remedial action plan prepared to address the release or threatened release of hazardous

substances at, in, or from the Chico Central Plume and finally approved by DTSC as described

in California Health and Safety Code section 25356.1, and also includes any amendments to the

remedial action plan that are subsequently approved by DTSC.

F. “Proposed Remedy” means a remedial action to address contamination at,

in, or from the Chico Central Plume, as set forth in detail as “Modified Alternative G” in the

Draft Final Remedial Action Plan dated March 28, 2007.

G. “Effective Date” is the day on which this Consent Decree is entered as an

order of the Court.

2. RECITALS

A. DTSC is the California state agency with primary jurisdiction over the

response to the release and threatened release of hazardous substances at, in, or from the Chico

Central Plume.

B. By and through its Complaint, DTSC seeks to recover jointly and

severally from Settling Defendants, and other defendants who are not parties to this Consent

Decree, all costs it has incurred in response to releases and/or threatened releases of hazardous

substances at, in, or from the Chico Central Plume, pursuant to section 107(a) of CERCLA. 

DTSC also seeks a declaratory judgment that defendants are jointly and severally liable for all

additional costs incurred by DTSC in response to the releases and/or threatened releases of

hazardous substances at, in, or from the Chico Central Plume pursuant to section 113(g)(2) of

CERCLA, 42 U.S.C. § 9613(g)(2). DTSC alleges that it will continue to incur Response Costs

until the remedy selected in the Remedial Action Plan, and implementation, operation and

maintenance of that remedy, is completed. DTSC also seeks injunctive relief to abate a public

nuisance (California Health and Safety Code section 58009) and to abate an imminent or

substantial endangerment to public health and safety or to the environment (California Health

and Safety Code section 25358.3). DTSC also seeks to enforce administrative orders issued to

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4.

Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

various defendants for investigation and remediation of the Chico Central Plume (California

Health and Safety Code section 25358.3) and seeks damages suffered by DTSC as a result of

the failure of certain defendants to properly undertake a removal or remedial action (California

Health and Safety Code section 25359). DTSC’s Complaint is hereby deemed amended to state

claims against Chico Unified School District and Metcalf & Eddy, Inc.

C. By entering into this Consent Decree, Settling Defendants make no

admission of liability.

D. Each of the parties to this Consent Decree represents and acknowledges

that, in deciding whether to enter into this Consent Decree, it has not relied on any statement of

fact, statement of opinion, or representation, express or implied, made by any other party to this

Consent Decree. Each of the parties to this Consent Decree has investigated the subject matter

of this Consent Decree to the extent necessary to make a rational and informed decision to

execute it, and has had the opportunity to consult independent counsel.

E. DTSC and Settling Defendants agree that settlement without further

litigation and without the admission or adjudication of any issue of fact or law is the most

appropriate means of resolving this action. This Consent Decree was negotiated and executed

by DTSC and Settling Defendants in good faith to avoid prolonged and complicated litigation. 

DTSC, moreover, has negotiated and executed this Consent Decree to further the public interest

and to protect human health and the environment.

3. JURISDICTION

This Court has jurisdiction over DTSC's federal law claims, which arise under

CERCLA, pursuant to 28 U.S.C. § 1331 and 42 U.S.C. § 9613(b). This Court has jurisdiction

over DTSC's state law claims under the supplemental jurisdiction provision of 28 U.S.C.

§ 1367(a) and under 28 U.S.C. § 2201, in that the state and federal claims arise from common

facts relating to the release of hazardous substances and remediation of or failure to remediate

the resulting contamination. This Court has personal jurisdiction over each of the parties to this

Consent Decree. Venue is proper in the Eastern District of California pursuant to 28 U.S.C.

§ 1391(b) and 42 U.S.C. § 9613(b). This Court, further, has the authority to enter this Consent

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5.

Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

Decree as a consent decree of the Court.

4. SETTLEMENT OF DISPUTED CLAIMS

4.1 This Consent Decree represents a fair, reasonable, and equitable

settlement of the matters addressed herein. 

4.2 For the purposes of this Consent Decree, Settling Defendants admit none

of the allegations of the Complaint. Nothing in this Consent Decree shall be construed as an

admission of any issue of law or fact or of any violation of law. Notwithstanding the foregoing,

each Settling Defendant acknowledges its responsibility pursuant to this Consent Decree to

perform those acts it has agreed to undertake in this Consent Decree, and shall not deny such

responsibility in any proceeding brought by DTSC to enforce this Consent Decree.

4.3 Except as set forth in section 11 of this Consent Decree, nothing in this

Consent Decree shall prejudice, waive, or impair any right, remedy or defense that a Settling

Defendant may have in any other or further legal proceeding. 

5. PAYMENTS BY AND ON BEHALF OF SETTLING PARTIES

5.1 Payments required by this Consent Decree

(a) To obtain the benefits of sections 9, 11, and 12 of this Consent

Decree (per section 5.4 below), Sunset View Cemetery Association must ensure that, within

30 days of the Effective Date, the following funds of the specified amounts are delivered to

counsel for the Sunset View Cemetery Association to be held in trust for DTSC, as described in

section 5.2:

(1) Payment of one million dollars ($1,000,000.00) made by

the Sunset View Cemetery Association;

(2) Payment of two million seven hundred fifty thousand

dollars ($2,750,000.00) made by a first insurance company;

(3) Payment of three hundred thousand dollars ($300,000.00)

made by a second insurance company.

(b) To obtain the benefits of sections 9, 11, and 12 of this Consent

Decree (per section 5.4 below), Sunset View Cemetery Association and the Pedens, jointly,

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6.

Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

must ensure that, within 30 days of the Effective Date, payment of three million two hundred

thousand dollars ($3,200,000.00) made by a third insurance company is delivered to counsel for

the Sunset View Cemetery Association to be held in trust for DTSC, as described in section 5.2.

(c) To obtain the benefits of sections 9, 11, and 12 of this Consent

Decree (per section 5.4 below), the Pedens must ensure that, within 30 days of the Effective

Date, an additional fifty thousand dollars ($50,000.00) is delivered to counsel for the Sunset

View Cemetery Association to be held in trust for DTSC, as described in section 5.2.

(d) Upon the Effective Date, Metcalf & Eddy, Inc. shall be liable to

DTSC for a total payment of one hundred thousand dollars ($100,000.00). To obtain the

benefits of sections 9, 11, and 12 of this Consent Decree (per section 5.4 below), within 30 days

of the Effective Date, Metcalf & Eddy, Inc. must pay this amount to DTSC as described below

in section 5.3.

(e) Upon the Effective Date, Chico Unified School District shall be

liable to DTSC for a total payment of fifty thousand dollars ($50,000.00). To obtain the

benefits of sections 9, 11, and 12 of this Consent Decree (per section 5.4 below), within 30 days

of the Effective Date, Chico Unified School District must pay this amount to DTSC as

described below in section 5.3. 

(f) If, within 60 days of the Effective Date, sections 9, 11, and 12 of

this Consent Decree have become applicable to Sunset View Cemetery Association, then Sunset

View Cemetery Association will pay, within one year of the Effective Date, an additional one

million fifty thousand dollars ($1,050,000.00), plus interest, to DTSC as described below in

section 5.3. Interest will begin to accrue starting on the Effective Date at the rate of 5.236

percent per year, which is the year 2007 California State Controller's Office's “Surplus Money

Investment Fund, Apportionment Yield Rate.” Sunset View Cemetery Association can make

this second installment payment at any time within the one year period after the Effective Date

and will only be subject to interest incurred on this second installment as of the date of actual

payment of the second installment. There is nothing in this paragraph that precludes Sunset

Cemetery Association from also paying this second installment to DTSC within 30 days of the

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7.

Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

Effective Date, as provided for in Paragraph 5.1(a)(1) of this Consent Decree in regards to the

first installment payment, which if Sunset View Cemetery Association so chooses would mean

no interest would accrue or be due to DTSC in connection with Sunset View Cemetery

Association's payment of this second installment. 

5.2 Collection of settlement funds to be held in trust

(a) Counsel for the Sunset View Cemetery Association will accept

and hold in trust for DTSC the payments required by sections 5.1(a), (b), and (c) of this Consent

Decree until such time the funds are to be delivered to DTSC pursuant to the terms of this

Consent Decree.

(b) Payments described in sections 5.1(a), (b), and (c) will be

delivered to counsel for Sunset View Cemetery Association at the following address:

J. Brittain Habegger

Paul S. Kibel

Fitzgerald Abbott & Beardsley LLP

1221 Broadway, 21st Floor

Oakland, CA 94612

(c) Sunset View Cemetery Association will direct its counsel

immediately to send to DTSC, in the manner specified in section 5.3, any of the payments

described below, if, on or before the day that is 30 days from the Effective Date, counsel for the

Sunset View Cemetery Association has received:

(1) All of the payments that are the responsibility of the

Sunset View Cemetery Association (specified in sections 5.1(a) and (b)), or

(2) All of the payments that are the responsibility of the

Pedens (specified in sections 5.1(b) and (c)), or

(3) Both (1) and (2), above.

5.3 All payments sent to DTSC pursuant to this Consent Decree will be

made by check made out to the California Department of Toxic Substances Control and

identified with the Court’s docket number of this case and “Site No. 100035.” Checks shall be

sent to the following address:

Department of Toxic Substances Control

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8.

Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

Cashier, Hazardous Substance Account

P. O. Box 806

Sacramento, CA 95812-0806

Copies of the checks shall be mailed to:

Jim Tjosvold

Chief, Northern California Central Cleanup Operations Branch

Department of Toxic Substances Control

8800 Cal Center Drive

Sacramento, CA 95826-3200

Attn: Donald Mandel, Project Manager for Chico Southwest Plume

Timothy E. Sullivan

Office of the Attorney General

1515 Clay Street, 20th Floor

Oakland, CA 94612

Joseph A. Salazar, Jr.

Lewis Brisbois Bisgaard & Smith LLP

2500 Venture Oaks Way, Suite 200

Sacramento, CA 95833

5.4 If, on the day that is 30 days from the Effective Date, any of the

payments specified in sections 5.1(a), (b), (c), (d), or (e) have not been delivered as required by

those sections, then sections 9, 11, and 12 of this Consent Decree do not include, apply to, or

otherwise benefit the Settling Defendant (or Defendants) responsible for ensuring delivery of

that payment, and that Settling Defendant may not raise those sections as a defense to any claim

of liability.

6. ACCESS TO PROPERTY

6.1 Sunset View Cemetery Association: Sunset View Cemetery Association

agrees to allow DTSC, its agents, or contractors reasonable access to and use of property under

its control or ownership in Chico, California, for the purposes of performing removal or

remedial actions, including but not limited to the installation of injection, extraction, and/or

monitoring wells and the performance of work described in the Remedial Action Workplan for

the shallow zone aquifer and any subsequent document pertaining to the design to implement

the Remedial Action Workplan. Such access to and use of property will be granted to DTSC

free of charge. Sunset View Cemetery Association agrees that it will work with DTSC in a

cooperative manner to ensure that DTSC’s removal and remedial actions can proceed

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

expeditiously with a minimum of procedural delays. DTSC, its agents, or contractors will

coordinate with Sunset View Cemetery Association in order to minimize to the extent feasible

disruptions to the use of its property. Within ten (10) days of the Effective Date, Sunset View

Cemetery Association will designate an employee to serve as a liaison with DTSC for

coordination of access to property as described in this section. 

6.2 Chico Unified School District: Chico Unified School District agrees to

allow DTSC, its agents, or contractors reasonable access to and use of property under its control

or ownership in Chico, California, for the purposes of performing removal or remedial actions. 

Specifically, Chico Unified School District agrees that DTSC may access and use its property to

implement the Proposed Remedy, including installing and operating for an unlimited time a

groundwater extraction well (and associated equipment) and an underground water conveyance

pipeline on property owned by Chico Unified School District. Such access to and use of

property will be granted to DTSC free of charge. Chico Unified School District agrees that it

will work with DTSC in a cooperative manner to ensure that DTSC’s removal and remedial

actions can proceed expeditiously with a minimum of procedural delays. DTSC, its agents, or

contractors will coordinate with Chico Unified School District in order to minimize to the

extent feasible disruptions to School District operations. Within ten (10) days of the Effective

Date, Chico Unified School District will designate an employee to serve as a liaison with DTSC

for coordination of access to property as described in this section.

7. REMEDIAL WORK TO BE PERFORMED

7.1 Operation of Chico Unified School District Well 45

Chico Unified School District agrees that it will operate its Well 45 at the Chico High

School in accordance with its historical use as an irrigation well. Chico Unified School District

will operate this well without charge to DTSC. Chico Unified School District will notify DTSC

prior to making any modifications to Well 45, ceasing operation of Well 45, or

decommissioning Well 45. Within ten (10) days of the Effective Date, Chico Unified School

District will designate an employee to serve as a liaison with DTSC for coordination of

operation of Well 45.

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10.

Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

7.2 Remedial Action Workplan for Portions of the Shallow Zone Aquifer

In connection with this litigation, environmental consultants retained by Sunset View

Cemetery Association have prepared a Remedial Action Workplan ("RAW") concerning PCE

contamination in certain portions of the shallow aquifer. This RAW has been approved and

accepted by DTSC. This Consent Decree does not affirmatively oblige or impose responsibility

on Sunset View Cemetery Association or any other of the SEttling Defendants to implement

any of the actions or tasks described in the RAW submitted to and accepted by DTSC. 

Immediately upon entry of this Consent Decree, Sunset View Cemetery Association will

instruct its consultants and contractors to provide to DTSC in electronic format historical site

data, site figures, groundwater model files, and word processing files containing the text of final

reports submitted to DTSC by Sunset View Cemetery Association.

8. GOVERNMENT LIABILITIES

8.1 Neither DTSC nor any other department or agency of the State of

California shall be liable for any injuries or damages to persons or property resulting from acts

or omissions by Settling Defendants in carrying out activities pursuant to this Consent Decree. 

Neither DTSC nor any other department or agency of the State of California shall be held as a

party to any contract entered into by Settling Defendants or their agents in carrying out

activities pursuant to this Consent Decree unless the contract is entered into in writing by DTSC

or such other department or agency of the State of California.

8.2 Nothing in this Consent Decree obligates DTSC to perform, implement,

or pay for any work specified in the Remedial Action Plan, the Remedial Action Workplan for

the shallow zone aquifer, or included in the definition of the Proposed Remedy, or to clean up

or remediate contaminated groundwater. This Consent Decree does not create a cause of action

against DTSC for any failure by DTSC to perform, implement, or pay for any work specified in

the Remedial Action Plan, the Remedial Action Workplan for the shallow zone aquifer, or

included in the definition of the Proposed Remedy, or to clean up or remediate contaminated

groundwater.

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

9. COVENANT NOT TO SUE BY DTSC

9.1 Except as specifically provided in sections 9.2 and 10, below, and except

as may be necessary to enforce the terms of this Consent Decree, as of the date that DTSC

receives all payments required by this Consent Decree, as specified in section 5.1 and 5.2,

DTSC covenants not to sue Settling Defendants for “Matters Addressed” by this Consent

Decree and not to issue administrative orders to Settling Defendants compelling further

investigation, testing, site characterization, remedial analysis, remedial action or monitoring for

"Matters Addressed" by this Consent Decree. “Matters Addressed” includes any and all civil

and administrative liability for reimbursement of all or any portion of DTSC’s Response Costs,

past or future, declaratory relief, injunctive relief or any other relief under CERCLA, the

Carpenter-Presley-Tanner Hazardous Substance Account Act, California Health & Safety Code

sections 25300 et seq., or common law for liability for Response Costs and/or response actions,

with regard to releases or threatened releases of perchloroethylene and its breakdown products

at, in, or from the Chico Central Plume, as set forth in the Complaint. 

9.2 “Matters Addressed” shall not include, and the covenant not to sue set

forth in section 9.1 above does not pertain to, any matters other than those expressly specified in

section 9.1. Nothing in this Consent Decree is intended to expand or diminish any authority

DTSC may have regarding the execution and recording of land use covenants that include

appropriate limitations on use of land in the area of the Chico Central Plume whose title is held

by or is owned by any of the Settling Defendants and where hazardous substances remain on,

in, or at the land above levels suitable for unrestricted use. DTSC reserves, and this Consent

Decree is without prejudice to, all rights, claims and causes of action DTSC may have against

Settling Defendants with respect to all other matters, including releases or threatened releases of

hazardous substances in the city of Chico other than releases or threatened releases of

perchloroethylene and its breakdown products at, in, or from the Chico Central Plume.

10. RESERVATION OF RIGHTS

10.1 The Covenant Not to Sue set forth in section 9.1 above does not pertain

to the following matters, which DTSC reserves, and this Consent Decree is without prejudice to

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

all rights and claims of DTSC against each Settling Defendant with respect to the following:

(a) failure of any of the Settling Defendants to meet the requirements of this

Consent Decree applicable to it;

(b) damage to natural resources, as defined in section 101(6) of CERCLA, 42

U.S.C. § 9601(6), including all costs incurred by any natural resources

trustees; and

(c) criminal liability.

10.2 Except as expressly provided in this Consent Decree, nothing in this

Consent Decree is intended nor shall it be construed to preclude DTSC from exercising its

authority under any law, statute or regulation. Furthermore, nothing in this Consent Decree is

intended, nor shall it be construed, to preclude any other state agency, department, board or

entity or any federal entity from exercising its authority under any law, statute or regulation.

10.3 This Consent Decree is not intended, nor shall it be construed, to limit or

otherwise affect DTSC's right to select a remedial action for the Chico Central Plume that is

different from or inconsistent with the Proposed Remedy or the Remedial Action Workplan for

the shallow zone aquifer.

11. COVENANTS NOT TO SUE BY SETTLING DEFENDANTS

11.1 Each Settling Defendant covenants not to sue, and agrees not to assert

any claims or causes of action against, DTSC, or its contractors or employees, for any costs or

damages that Settling Defendant might incur or for any injuries or losses that Settling

Defendant might suffer as a result of its performance of the requirements of this Consent

Decree. Each Settling Defendant further covenants not to sue, and agrees not to assert any

claims or causes of action against, DTSC, or its contractors or employees, for any and all civil

liability for reimbursement of all or any portion of that Settling Defendant’s response costs, past

or future, declaratory relief, injunctive relief or any other relief under CERCLA, the CarpenterPresley-Tanner Hazardous Substance Account Act, California Health & Safety Code sections

25300 et seq., or common law for liability for response costs and/or response actions, with

regard to releases or threatened releases of perchloroethylene and its breakdown products at, in,

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

or from the Chico Central Plume.

11.2 Settling Defendants covenant not to sue, and agree not to assert any

claims or causes of action against each other, or their contractors or employees, for any and all

civil liability (including but not limited to contractual liability) for reimbursement of all or any

portion of Settling Defendants’ response costs, past or future, declaratory relief, injunctive relief

or any other relief under CERCLA, the Carpenter-Presley-Tanner Hazardous Substance

Account Act, California Health & Safety Code sections 25300 et seq., or common law for

liability for response costs and/or response actions, with regard to releases or threatened

releases of perchloroethylene and its breakdown products that occurred prior to the effective

date of this Consent Decree at, in or from the Chico Central Plume. More specifically, this

provision is not intended and shall not be construed to release the Pedens from contractual

liabilities the Pedens (as a tenant) may otherwise have to Sunset View under lease terms related

to releases of PCE or other hazardous substances by the Pedens on Sunset View's property that

may occur subsequent to the effective date of this Consent Decree.

11.3 Settling Defendants covenant not to sue, and agree not to assert any

claims or causes of action against Noret, Inc., Norville Weiss, and Janet Weiss, or their

contractors or employees, for any and all civil liability for reimbursement of all or any portion

of Settling Defendants’ response costs, past or future, declaratory relief, injunctive relief or any

other relief under CERCLA, the Carpenter-Presley-Tanner Hazardous Substance Account Act,

California Health & Safety Code sections 25300 et seq., or common law for liability for

response costs and/or response actions, with regard to releases or threatened releases of

perchloroethylene and its breakdown products at, in, or from the Chico Central Plume. 

12. EFFECT OF CONSENT DECREE

12.1 This Consent Decree constitutes the resolution of Settling Defendants’

liability to DTSC with respect to the Matters Addressed in a judicially approved settlement

within the meaning of section 113(f)(2) of CERCLA, 42 U.S.C. § 9613(f)(2). 

12.2 Accordingly, provided that Settling Defendants perform all of their

obligations under this Consent Decree, as of the date that DTSC receives all payments required

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

by this Consent Decree as specified in section 5.1 and 5.2, Settling Defendants shall be entitled

to protection against all claims for contribution, pursuant to section 113(f)(2) of CERCLA, 42

U.S.C. § 9613(f)(2), for the Matters Addressed by this Consent Decree (as described in

section 9), to the fullest extent permitted by law, including but not limited to those claims

reserved by Noret, Inc., Norville Weiss, and Janet Weiss as approved by the Honorable

Lawrence K. Karlton on or about October 4, 2006.

12.3 Except as specifically provided in this Consent Decree, nothing in this

Consent Decree is intended, nor shall be construed, to waive, release, or otherwise affect any

right, claim, or cause of action held by any party to this Consent Decree against, or to provide a

covenant not to sue to, any third person not a party to this Consent Decree, or to in any way

limit, restrict, or impair the right of any party to this Consent Decree to assert rights, claims,

causes of actions, and defenses against any third person not a party to this Consent Decree,

including without limitation, the right to seek payment, reimbursement, contribution, or

indemnity from such persons for obligations incurred or to be incurred, or actions taken or to be

taken, under this Consent Decree. Except as specifically provided in this Consent Decree,

DTSC and Settling Defendants expressly reserve any rights, claims, or causes of actions they

might have against any third person not a party to this Consent Decree.

12.4 This Consent Decree is contingent and dependent on all of its terms being

approved and entered by the Court. If the Court does not approve and enter this Consent

Decree, DTSC and Settling Defendants reserve all of their respective rights, remedies, and

defenses.

13. RETENTION OF RECORDS

13.1 Each Settling Defendants shall provide to DTSC, upon request, copies of

all documents and information within their possession or control or that of their contractors or

agents relating to the implementation of this Consent Decree, including, but not limited to

design specifications, reports of construction activities, contracts, invoices, sampling, analysis,

chain of custody records, manifests, trucking logs, receipts, reports, sample traffic routing,

correspondence, easements, permits, grants of access to public property, and city government

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

resolutions. Such records shall be preserved by each Settling Defendants until 10 years after the

entry of this Consent Decree, or 10 years after creation of a record or document, whichever is

later.

13.2 Settling Defendants may assert that certain documents, records, and other

information are privileged under the attorney-client privilege or any other privilege recognized

by law. If Settling Defendants assert such a privilege, it shall provide DTSC with the

following: (1) the title of the document, record, or information; (2) the date of the document,

record, or information; (3) the name and title of the author of the document, record, or

information; (4) the name and title of each addressee and recipient of the document, record, or

information; (5) a description of the subject of the document, record, or information; and (6) the

privilege asserted by Settling Defendants. However, no documents, records, or other

information created or generated pursuant to the requirements of the Consent Decree shall be

withheld on the grounds that they are privileged. If a claim of privilege applies only to a

portion of a document, the document shall be provided to DTSC in redacted form to mask the

privileged information only. Settling Defendants shall retain all records and documents it

claims to be privileged until DTSC has had a reasonable opportunity to dispute the privilege

claim and any such dispute has been resolved in Settling Defendants’ favor.

14. NOTIFICATION

14.1. Notification to or communication between the parties to this Consent

Decree as required or provided for in this Consent Decree shall be addressed as follows:

As to DTSC:

Jim Tjosvold

Chief, Northern California Central Cleanup Operations Branch

Department of Toxic Substances Control

8800 Cal Center Drive

Sacramento, CA 95826-3200

Attn: Donald Mandel, Project Manager for Chico Central Plume

facsimile: (916) 255-3696

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

Judith Tracy, Esq.

Office of Legal Counsel

Department of Toxic Substances Control

1001 "I" Street

P.O. Box 806

Sacramento, CA 95812

facsimile: (916) 323-5542

Timothy E. Sullivan, Esq.

Deputy Attorney General

California Department of Justice

1515 Clay Street, 20th Floor

P.O. Box 70550

Oakland, CA 94612-0550

facsimile: (510) 622-2270

As to Sunset View Cemetery Association:

J. Brittain Habegger

Paul S. Kibel

Fitzgerald Abbott & Beardsley LLP

1221 Broadway, 21st Floor

Oakland, CA 94612

facsimile: (510) 451-1527

Michael Klinger, President

Sunset View Cemetery Association

P.O. Box 187

El Cerrito, CA 94530

facsimile: (510) 527-5484

As to the Pedens:

Joseph A. Salazar, Jr.

Lewis Brisbois Bisgaard & Smith LLP

2500 Venture Oaks Way, Suite 200

Sacramento, CA 95833

facsimile: (916) 564-5444

As to Metcalf & Eddy, Inc.

Kenneth F. Strong, Esq.

William J. Peters, Esq.

Aristotle E. Evia, Esq.

Gordon & Rees LLP

Embarcadero Center West Tower

275 Battery Street

San Francisco, CA 94111

facsimile: (415) 262-3766

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

Michael R. Kolloway, Esq.

Vice President and General Counsel

Consoer Townsend Engineering

303 East Wacker Drive, Suite 600

Chicago, IL 60601-5276

facsimile: (312) 938-1109

As to Chico Unified School District

Ms. Kelly Staley

Interim Superintendent

Chico Unified School District

Administrative Office

1163 East Seventh Street

Chico, CA 95928-5999

14.2. Upon 10 days notice to the other party, a party to this Consent Decree

may substitute another person for an addressee named above to receive notifications or

communications as required or provided for in this Consent Decree.

15. MODIFICATION OF CONSENT DECREE

This Consent Decree may only be modified upon the written agreement of DTSC

and Settling Defendants and the approval of the Court, or upon order of the Court after noticed

motion by a party to this Consent Decree.

16. APPLICATION OF CONSENT DECREE

This Consent Decree shall apply to and be binding upon DTSC, Settling

Defendants, and each of their respective successors and assigns. The provisions of this Consent

Decree shall inure to the benefit of DTSC, Settling Defendants, and each of their respective

successors and assigns. The provisions of this Consent Decree shall also inure to the benefit of

the officers, directors, employees and agents of Settling Defendants, in their capacities as such. 

17. AUTHORITY TO ENTER

Each signatory to this Consent Decree certifies that he or she is fully authorized

by the party he or she represents to enter into this Consent Decree, to execute it on behalf of the

party represented, and legally to bind that party.

18. INTEGRATION

This Consent Decree, including the exhibits and other materials incorporated

herein by reference, constitutes the entire agreement between DTSC and Settling Defendants

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

and may not be amended or supplemented except as provided for in this Consent Decree.

19. RETENTION OF JURISDICTION

The Court shall retain jurisdiction of this matter for the purpose of enforcing the

terms of this Consent Decree.

20. EXECUTION OF DECREE

This Consent Decree may be executed in two or more counterparts, each of

which shall be deemed an original, but all of which together shall constitute one and the same

instrument.

21. INTERPRETATION

California law governs the interpretation of this Consent Decree. This Consent

Decree shall be deemed to have been drafted equally by all parties hereto.

22. ATTORNEYS FEES AND COSTS

As to each other, each party to this Consent Decree shall bear its own costs,

attorneys' fees, expert witness fees and all other costs of litigation. This paragraph shall have no

effect on the parties’ right to recover these fees or costs from any other party.

23. APPROVALS OF PARTIES

Plaintiff DTSC consents to this Consent Decree by its authorized representative

as follows:

CALIFORNIA DEPARTMENT OF 

TOXIC SUBSTANCES CONTROL

Dated: 11/8/07 /s/ James Tjosvold 

James Tjosvold

Chief, Northern California-Central Cleanup

 Operations Branch

California Department of Toxic Substances

Control

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

Sunset View Cemetery Association consents to this Consent Decree by its

authorized representative as follows:

SUNSET VIEW CEMETERY 

ASSOCIATION

Dated: 11/15/07 /s/ Michael J. Klinger 

Michael Klinger, President of Sunset 

View Cemetery Association

John Peden consents to this Consent Decree:

Dated: 11/2/07 /s/ John Peden 

John Peden

Lorena Peden consents to this Consent Decree:

Dated: 11/2/07 /s/ Lorena Peden 

Lorena Peden

Peden Enterprises, Inc. consents to this Consent Decree by its authorized

representative as follows:

PEDEN ENTERPRISES, INC.

Dated: 11/2/07 /s/ John Peden 

by: Vice President

Metcalf & Eddy, Inc. consents to this Consent Decree by its authorized

representative as follows:

METCALF & EDDY, INC.

Dated: 11/1/07 /s/ Michael R. Kolloway 

by: Michael R. Kolloway

 Sr. Vice President

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

Chico Unified School District consents to this Consent Decree by its authorized

representative as follows:

CHICO UNIFIED SCHOOL DISTRICT

Dated: 11/20/07 /s/ Michael Weissenborn 

by: Michael Weissenborn

 Facilities Planner

APPROVED AS TO FORM:

Dated: 11/6/07 

EDMUND G. BROWN JR.

Attorney General of the State of California

JANET GAARD

 Acting Chief Assistant Attorney General

THEODORA BERGER

 Senior Assistant Attorney General

SALLY KNOX

 Supervising Deputy Attorney General

 By /s/ Timothy E. Sullivan 

 TIMOTHY E. SULLIVAN

Deputy Attorney General

Attorneys for Plaintiff California

Department of Toxic Substances Control

Dated: 11/15/07 

 By: /s/ J. Brittain Habegger 

J. BRITTAIN HABEGGER

PAUL S. KIBEL

Fitzgerald, Abbott & Beardsley LLP

Attorneys for Sunset View Cemetery

Association

Dated: 11/6/07 

 By: /s/ Joseph A. Salazar, Jr. 

JOSEPH A. SALAZAR, JR.

Lewis Brisbois Bisgaard & Smith LLP

Attorneys for John Peden, Lorena Peden,

and Peden Enterprises

 Dated: 11/1/07 

 By: /s/ Aristotle Evia 

WILLIAM J. PETERS

KENNETH F. STRONG

ARISTOTLE EVIA

Gordon & Rees LLP

Attorneys for Metcalf & Eddy, Inc.

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Settlement Agreement & Consent Decree Case No. CIV. S-02-0442 LKK DAD

 Dated: 11/30/07 

 By: /s/ Richard L. Crabtree 

RICHARD L. CRABTREE

Law Offices of Richard L. Crabtree

Attorneys for Chico Unified School District

IT IS SO ORDERED, ADJUDGED AND DECREED:

Dated: January 7, 2008.

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