HomeMy WebLinkAbout09 29 08_Update on Buttrey's Solvent Site Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Tim Cooper, Assistant City Attorney
SUBJECT: Buttrey Solvent Site: Update
MEETING DATE: September 29, 2008
In 1989 and 1990, the State, during the testing of wells within the City and north of the Buttery’s Shopping
Center, found elevated levels of PCE, DCE and TCE in the soil and groundwater. These chemicals are
considered hazardous substances and contaminants under both CERCLA and CECRA. After this finding
was made and on December 31, 1991, MDHES identified the City as a potentially liable party (PLP) under
CECRA. Pursuant to CECRA, MDHES has required the City and Jewel, another named PLP, to undertake
various investigatory and remediation activity including the provision of an alternative water supply to
residences and businesses, the wells of which have been found to contain the chemicals in excess of the
maximum contaminant level of the Clean Water Act.
State of Montana v. City of Bozeman
The State has levied cost reimbursement demands upon Jewel and the City, and they have been paid by
Jewel and the City. Additional such demands can be anticipated over the next year. From the historical
perspective of similarly contaminated sites throughout the United States, the remediation and investigation
activity may continue. The City is responding to the State's CECRA order by complying as CECRA
imposes absolute liability upon any PLP. It is difficult, at this juncture, to give any estimate of the costs
involved in this matter, as all activity will be directed by the State. However, as of June 30, 2004, the City
had accrued $435,000 in the Waste Water Fund for estimated remediation costs.
This action was filed in the United States District Court for the District of Montana. The multi-count
complaint reduced itself to a cost recovery action under the Federal Superfund (CERCLA) and State
Superfund (CECRA). On July 8, 1999, the City, Jewel Food Stores, Inc. and the other parties reached a
final settlement agreement in this action. The settlement, in part, requires Jewel Food Stores, Inc. to pay the
City of Bozeman $1,200,000, the City and Jewel to extend alternative water supply to businesses and
residents in the North 19th Avenue area of the City; and Jewel and the City to share specified remediation
costs on an equal basis (50% each) up to a cumulative amount of $4,000,000, and for eligible costs in
excess of that amount, to be shared 70% by Jewel and 30% by the City.
Jewel v. City of Bozeman
As of the June 30, 2007, the only remaining work at the site is the final plume monitoring of the wells and
remedial activity within the plume area. It is reasonably possible that the City will incur remediation costs
as outlined in the settlement, however, the amount of costs for which the City is contingently liable cannot
be reasonably estimated at this time. Accordingly, no liability has been recorded in the accompanying
financial statements.
In August, 2008, the City signed a work authorization for ATC Associates to do a bioremediation pilot
test at the BSS. The estimated cost of the total project is $251,260.13. The costs will be evenly shared
203
between the City and CVS for a split of $125,630.07 to the City. Testing should be completed by July
2009.
Respectfully submitted,
____________________________________
Tim Cooper
204