Miami-Dade Legislative Item
File Number: 122175
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File Number: 122175 File Type: Resolution Status: Adopted
Version: 0 Reference: R-1033-12 Control: Board of County Commissioners
File Name: THE PAYMENT OF $63,423 FOR COSTS AND EXPENSES Introduced: 10/26/2012
Requester: Miami-Dade Transit Cost: Final Action: 12/4/2012
Agenda Date: 12/4/2012 Agenda Item Number: 8N1
Notes: REQUIRES CITT Title: RESOLUTION AUTHORIZING THE MAYOR OR THE MAYOR’S DESIGNEE TO EXECUTE THE PETROLEUM PRODUCTS CORPORATION VOTING FORM FOR ADDITIONAL ASSESSMENT IN 2012; AUTHORIZING THE PAYMENT OF $63,428.21 FOR COSTS AND EXPENSES RELATED TO ON-GOING REMEDIAL WORK AT THE PETROLEUM PRODUCTS CORPORATION SUPERFUND SITE; AND THE USE OF CHARTER COUNTY TRANSPORTATION SYSTEM SURTAX FUNDS
Indexes: NONE
Sponsors: Audrey M. Edmonson, Prime Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 12/4/2012 8N1 Adopted P
REPORT: Commissioner Sosa questioned why the County was still liable for costs related to the oil spill at the Petroleum Products Corporation Superfund site in Broward County, which was used between 1950 and 1985. Assistant County Attorney Abbie Schwaderer advised that the Superfund Site was the subject of a Consent Agreement between the County, the Environmental Protection Agency and a number of other governmental agencies. She noted it was her understanding that the County hired a company to transport oil which was spilled at the Site. Assistant County Attorney Schwaderer advised that the County entered into the Consent Agreement and agreed to contribute to the cleanup of the Superfund Site. She said there was no time limit on the contributions; however, the contributions to date under the Agreement, including the $60,000, amounted to approximately $220,000 in total. Assistant County Attorney Schwaderer noted she believed that the State had contributed the majority of the funds which was more than $2 million. In an unrelated matter, Commissioner Monestime noted the County Commission had made a great effort to support small business participation in the contracting process. He said it was brought to his attention that some small companies that had open contracts from Miami-Dade Transit had gone out of business because they were not paid. Commissioner Monestime asked the Transit director whether she was aware of this situation. Ms. Ysela Llort, Director, Miami-Dade Transit (MDT), said she was aware that one particular company that worked at the Airport station had expressed concern. She noted this company was a subcontractor to the County’s prime contractor. Ms. Llort said MDT’s records indicated that the amount of money that was not under dispute had been paid for. She noted it was her understanding that the issue also involved claims and these claims had to undergo a process. Ms. Llort said that MDT was supportive of its small businesses and wanted to ensure that they flourished, but was also respectful of the contractual relationship between a prime contractor and a subcontractor. She noted she had offered this particular company an opportunity for its concern to be discussed with Odebrecht OHL, the prime contractor at the Airport; and would follow up on this issue. Ms. Llort explained that the dispute was between the prime contractor and the subcontractor regarding work claims. She noted the County’s relationship was with the prime contractor; however, staff tried to assist in disputes of this nature and would provide an opportunity for a good conversation to occur between the sub and prime contractors. Commissioner Monestime noted the prime contractors usually had many resources. He questioned who was responsible for assisting small businesses with resolving pay disputes and ensuring that they remained in business. Commissioner Monestime said that staff needed to bring these issues to the County Commission if they were not being resolved quickly. He pointed out that small businesses did not have the capacity to sustain themselves. Commissioner Monestime said that he heard of three subcontractors whose companies had gone out of business because they had not been paid after working on the Airport Link Project. Ms. Llort said that staff worked with the small businesses continuously, but, was also respectful of the fact that a legal process existed for disputes. She noted in the interest of furthering their relation with this particular small business, staff would bring their issue again to the prime contractor’s attention. Commissioner Jordan recalled the County Commission’s experience with the Marlins Stadium and noted the Commission should ensure that work was not being assigned to small businesses outside of the contract parameters. She noted if this occurred, the Commission should facilitate the process for those small businesses to be paid appropriately. Commissioner Jordan pointed out that there was a difference between who handles small business review at the Airport, versus the remainder of the County. Commissioner Monestime asked Ms. Llort to provide him with a report of subcontractors throughout MDT who were not paid on some of the contracts or who had a dispute with a particular prime contractor.

County Mayor 11/26/2012 Assigned County Attorney 12/4/2012
REPORT: MDT (scrivener's error) - Abbie Raurell assisted - Comm. Edmonson sponsor

Regional Transportation Committee 11/13/2012 3E Forwarded to BCC with a favorable recommendation as corrected P
REPORT: Assistant County Attorney Bruce Libhaber read the foregoing proposed resolution into the record. Hearing no comments or questions, the Committee members proceeded to vote on the foregoing proposed resolution, as presented.

County Attorney 10/30/2012 Assigned Abbie N. Schwaderer

County Mayor 10/30/2012 Assigned Alina Tejeda-Hudak
REPORT: Item returned to DM.

County Attorney 10/26/2012 Assigned Mayor
REPORT: item returned to agenda office

County Attorney 10/26/2012 Assigned Abbie N. Schwaderer

County Mayor 10/26/2012 Assigned County Attorney 12/4/2012
REPORT: MDT-Pending Cmte- Abbie S Raurell

County Mayor 10/26/2012 Assigned Alina Tejeda-Hudak

Legislative Text


TITLE
RESOLUTION AUTHORIZING THE MAYOR OR THE MAYOR’S DESIGNEE TO EXECUTE THE PETROLEUM PRODUCTS CORPORATION VOTING FORM FOR ADDITIONAL ASSESSMENT IN 2012; AUTHORIZING THE PAYMENT OF $63,428.21 FOR COSTS AND EXPENSES RELATED TO ON-GOING REMEDIAL WORK AT THE PETROLEUM PRODUCTS CORPORATION SUPERFUND SITE; AND THE USE OF CHARTER COUNTY TRANSPORTATION SYSTEM SURTAX FUNDS

BODY
WHEREAS, the United States Environmental Protection Agency (EPA) identified Miami-Dade County, as well as numerous other potentially responsible parties, under Section 107 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA or Superfund) for environmental responsibilities at the Petroleum Products Corporation (PPC) Site; and WHEREAS, in 1993, the County entered into a Petroleum Products Corporation Amended Participation Agreement with the other “Cooperating Parties” to jointly address the required remediation of contamination at the PPC site; and

WHEREAS, the Cooperating Parties are required to contribute such additional funds on the basis of each Cooperating Party’s alleged volumetric contribution of waste liquids to the site, with the County’s share being 23.49% of the total; and

WHEREAS, in July 2012 the County received notice of an additional assessment in the amount of $63,428.21 for its pro rata share of costs and expenses related to the ongoing cleanup efforts at the PPC site; and

WHEREAS, the Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,


NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board hereby authorizes the Mayor or the Mayor’s designee to pay the County’s current alleged assessment under the Petroleum Products Corporation Amended Participation Agreement for costs and expenses related to the Petroleum Products Corporation Superfund Site in the amount of $63,428.21.

HEADER
Date:
To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners

From: Carlos Gimenez
County Mayor

Subject: Resolution Authorizing the Mayor or the Mayor’s Designee to Execute the Petroleum Products Corporation Voting Form for Additional Assessment in 2012 and Authorizing the Payment of $63,428.21 for Costs and Expenses Related to On-going Remedial Work at the Petroleum Products Corporation Superfund Site

STAFF RECOMMENDATION
RECOMMENDATION
It is recommended that the Board of County Commissioners (Board) authorize the Mayor or the Mayor’s designee to execute the Petroleum Products Corporation Voting Form for Additional Assessment in 2012 and authorize a payment of $63,428.21 for costs related to the Petroleum Products Corporation Superfund Site.

This agenda item is placed for Committee review pursuant to Miami-Dade County Code Section 29-124(f). This agenda item may only be considered by the Board if the Citizens’ Independent Transportation Trust (CITT) has forwarded a recommendation to the Board prior to the date scheduled for Board consideration or forty-five (45) days have elapsed since the filing with the Clerk of the Board of this agenda item. If the CITT has not forwarded a recommendation and forty-five (45) days have not elapsed since the filing of this agenda item, I will request a withdrawal of this item.

SCOPE
This payment does not affect any area of Miami-Dade County (County). The Petroleum Products Corporation Superfund Site is located in Broward County.

FISCAL IMPACT/FUNDING SOURCE
The payment of $63,428.21 will be funded by Miami-Dade Transit (MDT) Operating funds.

TRACK RECORD/MONITOR
Hugh W. Chen, MDT, Deputy Director for Operations, will monitor this matter. The vendor, Petroleum Products Corporation, closed operations in 1985.

MANAGER'S BACKGROUND
BACKGROUND
In the early 1990s, the United States Environmental Protection Agency (EPA) identified the County as a potentially responsible party under the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (commonly referred to as the Superfund) for environmental responsibilities at the Petroleum Products Corporation site in Broward County. The site, located at 3130 SW 19 Street in Pembroke Park, Florida, operated from the late 1950s to 1985 as a used oil refinery and then as a fuel blending and reprocessing facility. Petroleum Products Corporation allegedly discharged petroleum products, and possibly other contaminants, to the ground at the Site. MDT was allegedly one of many liquid waste generators whose waste oil was disposed there, as well as other contributing entities including Publix Super Markets, Inc., Goodyear Tire & Rubber Co., Baptist Hospital and the Cities of Miami and Miami Beach.

In order to minimize Miami-Dade County’s liability to the EPA for costs to conduct the environmental site cleanup, Miami-Dade County signed the Petroleum Products Corporation Amended Participation Agreement in 1993 (Attachment A). Under the Amended Participation Agreement, additional funding assessments must be approved by 75% of the Cooperating Parties (Attachment A, page 3, “Additional Assessments”). The Cooperating Parties’ funding contributions are based on the alleged gallons of waste petroleum products disposed at the Petroleum Products Corporation Superfund Site, with the County’s share assessed at 23.49% of the Cooperating Parties’ total obligation (Attachment B).

The County made an initial contribution of $94,133 into the trust account in 1993. Because most of the remediation costs have been eligible for payment under the State Petroleum Cleanup Program, no further payment assessments were requested of the County until 2010. Since that time, the County has received notices of two additional assessments, both in the amount of $63,423 (the County’s pro rata share of total assessment) to cover remediation costs not eligible for payment under the State program. The County paid the first assessment in March of 2011. In July 2012, the County received notice of an additional assessment to fund the on-going environmental cleanup at the Petroleum Products Corporation Superfund Site (Attachment C).

Regarding the on-going environmental remediation at the Petroleum Products Corporation Superfund site, the EPA originally divided the site cleanup into three Operable Units. Operable Unit 1 would address the free floating oil in groundwater, Operable Unit 2 would address contaminated soils and Operable Unit 3 would address groundwater contamination. In December 1991, the Operable Unit 1 remedy was implemented, first using groundwater extraction and treatment then later removing free floating oil through a combination of enhanced biological activity to release oil from soils and vacuum extraction to remove the oil. These activities are performed by the Cooperating Parties’ on-site contractor, Environmental Consulting Technology.

For Operable Unit 2, the EPA is currently conducting further assessment of the extent of soil contamination. The EPA’s September 2012 Status Report shows that a Record of Decision is scheduled for mid-2014 that will select the remedy for contaminated soils. Without a selected remedy at this time, future cleanup costs and a timetable cannot be estimated. Finally, for Operable Unit 3, the EPA is also conducting further assessment of groundwater contamination at the site and the September 2012 Status Report did not provide a timeline for the Operable Unit 3 Record of Decision.

In accordance with the Amended Participation Agreement signed in 1993, the County is legally obligated to fund the environmental clean-up of the Petroleum Products Corporation Superfund Site. Therefore, it is recommended that the Board authorize the Mayor or his designee to execute the Petroleum Products Corporation Voting Form for the additional assessment in 2012 and authorize a payment of $63,428.21 for costs related to the Petroleum Products Corporation Superfund Site.


_________________________
Alina T. Hudak
Deputy Mayor/County Manager



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