ORDINANCE No. 178119

Authorize the Risk Manager and the City Attorney to negotiate and settle claims with insurers for environmental investigation and cleanup costs in the Portland Harbor Superfund Site.

The City of Portland ordains:

Section 1.  The Council finds:

1.  The United States Environmental Protection Agency (EPA) designated a portion of the Willamette River as the Portland Harbor Superfund Site due to sediment contamination in the river.

2.  The City of Portland operates a combined sewer system and a stormwater conveyance system that may serve as conduits for contamination from upland sources.

3.  EPA named the City of Portland as a potentially responsible party under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA or Superfund) because of possible current and historical discharge of contaminants through the combined sewer and stormwater conveyance systems.

4.  The City entered into an Administrative Order on Consent with EPA, along with nine other potentially responsible parties, to participate in an investigation to characterize the contamination in the Portland Harbor Superfund Site and to develop cleanup alternatives.

5.  To date, the Bureau of Environmental Services has funded the investigation activities required by the Administrative Order with ratepayer funds.

6.  The City purchased insurance policies from the late 1940s through the 1980s, which included coverage regarding claims for investigation and cleanup of environmental pollution.

NOW, THEREFORE, the Council directs:

a.  The Risk Manager and the City Attorney are hereby authorized to negotiate and settle claims for damages associated with investigation and cleanup actions at the Portland Harbor Superfund Site under policies of insurance issued to the City.

Section 2.  The Council declares that an emergency exists because it is necessary for Risk Management and the City Attorney’s Office to be able to negotiate and settle these claims for insurance coverage as expeditiously as possible in order to achieve the maximum benefit for the City. Therefore, this Ordinance shall be in full force and effect after its passage by the Council.

Mayor Vera Katz

Jan V.V. Betz:jb

December 17, 2003

BACKING SHEET INFORMATION

AGENDA NO. 1455-2003

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 178119