HomeMy WebLinkAboutE- Packet 06-11-2007_Authorization for City Manager to Negotiate Settle_14
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Tim Cooper, Assistant City Attorney
Chris Kukulski, City Manager
SUBJECT: Authorization for City Manager to Negotiate Settlement of Allocation of
Liability for CMC Bozeman Asbestos Facility
MEETING DATE: June 11, 2007
BACKGROUND: The City of Bozeman petitioned the Department of Environmental
Quality (DEQ) for an allocation of liability at the above facility (site of the new Library)
pursuant to the Controlled Allocation of Liability (CALA) Act. CALA is a voluntary process
that allows potentially liable parties to petition for an allocation of liability as an alternative to
the strict, joint and several liability scheme included in state law. CALA involves negotiations
designed to allocate liability among persons involved at the facility, including bankrupt or
defunct persons, referred to as the “orphan shares.” CALA also provides the funding for the
orphan share of the cost of remediation. The parties have conducted discovery and held an initial
meeting to conduct allocation negotiations, with the intention of ultimately executing a stipulated
agreement.
It in the best interests of the City of Bozeman to effect an agreement with the highest
possible allocation of liability to the orphan share, to produce the most reimbursement of the
City’s cost of remediation. Ideally one hundred percent of the liability would be allocated to the
orphan share. The Commission is advised, however, that the orphan share is represented by the
DEQ, and that an allocation agreement must be approved by the DEQ. The City must therefore
be prepared to accept or reject an agreement that not only allocates less than one hundred percent
of the liability to the orphan share buy also potentially allocates liability to the City of Bozeman.
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RECOMMENDATION: The City Commission authorize the City Manager to Negotiate
Settlement of Allocation of Liability for CMC Bozeman Asbestos Facility.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
_________________________________
Tim Cooper
Assistant City Attorney
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