2025/10/01 Council Agenda Packet

SETTLEMENT AGREEMENT AND SITE RELEASE This SETTLEMENT AGREEMENT AND SITE RELEASE ("Agreement") is entered into as of the Execution Date, (as hereinafter defined) and effective as of the Effective Date, (as hereinafter defined) by and between: (i) City of Everett ("City") (on behalf of the "City Releasees" as hereinafter defined); and (ii) Century Indemnity Company, as successor to (1) CCI Insurance Company, as successor to the Insurance Company of North America and Indemnity Insurance Company of North America, and (2) CIGNA Specialty Insurance Company (f/k/a California Union Insurance Company (“Century”) (collectively the “Insurers”), (on behalf of the "Insurers Releasees" as hereinafter defined). I. RECITALS WHEREAS, the City of Everett is the owner and/or operator of property located at 2731 36th St., Everett, WA, consisting of three tax parcels identified as follows: Parcel 2905290040100 (a 1.39 acre parcel owned by the City of Everett); Parcel 29052900400800 (a 0.55 acre portion of the 36th Street right-of-way); and the 1.50-acre Parcel 2905290040150. These three tax parcels, generally addressed at 2731 36th St., Everett, WA, potentially include properties addressed or otherwise referred to as "2815 36th Street SE", and "2931 36th Street," and are collectively referred to herein as the "GTS Site." See Exhibit A. The GTS Site has allegedly been contaminated with various hazardous substances that are recognized to come within the substantive requirements of the Model Toxics Control Act, RCW 70.105D.080 et seq.; WHEREAS, as a result of the alleged Environmental Contamination (as hereinafter defined) at and around the GTS Site (as hereinafter defined), the City of Everett allegedly has incurred and allegedly will continue to incur environmental investigation and remediation costs and other costs; WHEREAS, in or around October 2009, the City of Everett submitted an application for inclusion