Loading...
HomeMy WebLinkAboutMemorandumCITY OF MIAMI OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Victoria Mendez, City Attorney ,j a DATE: January 12, 2023 RE: City Commission Meeting — January 12, 2023 Proposed Settlement — Petroleum Products Corp. Superfund Site Case No.: 91-CV-2014-BB File No.: 12811 The proposed resolution seeks authorization for the settlement with the United States Environmental Protection Agency in the amount of $155,292.00, relating to a consent decree in the matter of United States of America v. Petroleum Products Corp., et al., pending in the United States District Court for the Southern District of Florida, Case No.: 91-CV-2014-BB. Outside counsel has investigated and evaluated this case and has recommended this settlement. Funds in the above amount will be paid from Account No. 00001.980000.531010.0. 0. Attachment(s) cc. Art Noriega, V, City Manager Miriam M. Santana, Agenda Coordinator VM/CAG Attachment(s) Exhibit A q {Y City of Miami City Hall 3500 Pan American Drive - Legislation Miami, FL 33133 8,,t.`$ Resolution www.miamigov.com Enactment Number: R-23-0003 File Number: 12811 Final Action Date:1/12/2023 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE CONSENT DEGREE, IN SUBSTANTIALLY THE ATTACHED FORM AND INCORPORATED AS EXHIBIT "A", WITH THE UNITED STATES OF AMERICA'S ENVIRONMENTAL PROTECTION AGENCY ("EPA"); AUTHORIZING THE CITY MANAGER TO ENTER INTO THE CONSENT DECREE WITH THE EPA; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A SETTLEMENT AND COOPERATION AGREEMENT WITH FILMORE INVESTORS CORP., PEMBROKE PARK WAREHOUSES BUILDING CO., BROWARD COUNTY, AON 31 ST LLC, PARK 31 ST CORP., AND THE NON-FEDERAL GENERATOR POTENTIALLY RESPONSIBLE PARTIES, IN A FORM ACCEPTABLE TO OUTSIDE COUNSEL AND THE CITY ATTORNEY, WHICH PROVIDES FOR A DE MINIMIS SETTLEMENT OF THE CITY OF MIAMI'S ("CITY") RESPONSIBILITY FOR FUNDING CLEANUP AND RECOVERY COSTS ASSOCIATED WITH THE PETROLEUM PRODUCTS CORPORATION SUPERFUND SITE; AUTHORIZING THE DIRECTOR OF FINANCE TO PAY $155,292.00 TO THE PPC TRUST ACCOUNT FOR THE DE MINIMIS SETTLEMENT; ALLOCATING FUNDS FROM ACCOUNT NO. 00001.980000.531010.0. 0. WHEREAS, an environmental claim had been asserted by the United States of America against the City of Miami ("City") and multiple other waste generator parties for alleged disposal of waste oil to the Petroleum Products Corporation ("PPC") Superfund Site ("Site") located in Pembroke Park, Broward County, Florida; and WHEREAS, the City's motor pool allegedly sent 83,055 gallons of waste oil to the Site, representing an approximate .596% volumetric contribution; and WHEREAS, the Site was listed on the National Priorities List for contaminated sites on July 22, 1987; and WHEREAS, based on invoices documenting the City's involvement in the Site, the Environmental Protection Agency ("EPA") determined that the City was a generator of hazardous wastes at the Site, and is therefore jointly and severally liable for the cleanup and recovery costs at the Site; and WHEREAS, in October 2000, the EPA offered to settle this matter on a de minimis basis for $378,304.00 with the City, but the City did not accept the offer; and WHEREAS, the City subsequently joined a group of Potentially Responsible Parties ("PRPs"), in a Cooperating Parties Group ("CPG"); and WHEREAS, the CPG, by and through separate outside legal counsel and a remedial contractor, have been overseeing assessment activities to date and coordinating with the EPA and the Florida Department of Environmental Protection; and WHEREAS, the Site was divided by the EPA into three Operable Units (OU1, OU2, and OU3): OU1 was designed to address the removal of free oils from the subsurface of the Site; OU2 is designed to address oily -impacted soils; and, OU3 will address groundwater contamination, should additional remedial action be required following OU2; and WHEREAS, the City signed a Consent Decree entered by the United States District Court for the Southern District of Florida in the case styled United States of America v. Petroleum Products Corp., Case No. 91-CV-2014; and WHEREAS, in July 2021, the EPA issued a Record of Decision for OU1, OU2 and an interim remedy for OU3, and determined the City is now eligible for a second de minimis settlement offer due to its relatively low volumetric contribution to the Site; and WHEREAS, pursuant to the proposed de minimis settlement, the City will enter into a consent decree and execute a Settlement and Cooperation Agreement which reallocates monies paid in over time by the City and other members of the CPG to fund assessment and cleanup activities at the Site and provides payment through the de minimis settlement to owners of the real property as consideration for the relocation of tenants from buildings that will or may be demolished at the Site during remediation; and WHEREAS, the City's de minimis settlement portion is $155,292.00 after applicable credits; and WHEREAS, outside counsel, has investigated this claim and recommends that said claim be settled for the terms summarized above and as memorialized in a written Settlement and Cooperation Agreement; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The consent decree, in substantially the attached form and incorporated as Exhibit "A", is hereby approved. Section 3. The City Manager is authorized' to enter into a consent decree, in substantially the attached form and incorporated as Exhibit "A". Section 4. The City Manager is further authorized to negotiate and execute a Settlement and Cooperation Agreement, in a form acceptable to outside counsel and the City Attorney, a draft of which is attached and incorporated as Exhibit "B", in full and complete settlement of the City's responsibility for cleanup and recovery costs at the Site. Section 5. The Director of Finance is authorized' to pay the PPC Trust Account the total sum of $155,292.00 for the City's de minimis settlement. Section 6. Funds to be allocated from Account No. 00001.980000.531010.0.0 ' The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions. Section 7. This Resolution shall become effective immediately upon its adoption APPROVED AS TO FORM AND CORRECTNESS: 1 i , na4indE�z, CiFy Attor iey 1/312023 Pursuant to the resolution, this item became effective immediately upon adoption by the Commission.