RESOLUTION NO. RS2003-1396

A resolution authorizing the Metropolitan Department of Law to enter into a settlement agreement in conjunction with the Dunlop Tire Corporation, Revere Copper and Brass, Inc. and Neely Coble Inc., acting in conjunction with the Saad Site Steering Committee, to pay $16,000.00 per party to the United States Environmental Protection Agency.

Whereas, the United States Environmental Protection Agency (EPA) has previously requested $1,164,796.24 in response costs from a number of parties related to the cleanup of the Saad Superfund Site, located at 3657 Trousdale Road, Nashville, Tennessee; and

Whereas, the Saad Site Steering Committee, comprising approximately 400 parties, pursuant to an agreement with the EPA, completed cleanup of the Saad Site at a cost of approximately $4,000,000.00; and

Whereas, the Metropolitan Government is alleged to have contributed used oil to the site, and is therefore considered liable as a generator of hazardous substances at the site; and

Whereas, based upon the significant amounts expended by the EPA and the Saad Site Steering Committee, the Metropolitan Government’s liability may be substantially greater if it does not enter into this agreement; and

Whereas, the Saad Site Steering Committee, Dunlop Tire Corporation, Revere Copper and Brass, Inc. and Neely Coble Inc. have asked the Metropolitan Government to join in a five party settlement (the “Five Party Agreement”) to limit their potential liability to the EPA; and

Whereas, by means of the Five Party Agreement, the Metropolitan Government’s liability is limited to $16,000.00 for all costs incurred in the cleanup and administration of the site; and

Whereas, the Five Party Agreement provides that the Metropolitan Government’s payment will be made to the trust account of attorney Frank J. Scanlon, Esq., counsel for Neely Coble, Inc., who will then submit a single check to the EPA for $80,000.00 (representing the combined funds of the parties); and

Whereas, the other parties to the Five Party Agreement have already made payments to the EPA in the amount of sixteen thousand dollars ($16,000.00) per party; and

Whereas, the Metropolitan Government’s contribution to the Five Party Agreement may be offset by the eventual foreclosure and sale of the property at issue; and

Whereas, the Metropolitan Department of Law believes that a settlement of sixteen thousand dollars ($16,000.00) is a fair and reasonable settlement and recommends that this claim be compromised and settled.

Now therefore, be it resolved by the Council of The Metropolitan Government of Nashville and Davidson County:

Section 1: That the Metropolitan Department of Law is authorized to enter into the Five Party Agreement and to comprise and settle the claims of the EPA in the amount of $16,000.00, by payment to attorney Frank Scanlon, Esq., and that said amounts should be paid out of the Judgments and Losses fund.

Section 2: That a copy of the settlement agreement is attached hereto and is incorporated by reference.

Section 3: This resolution shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Craig Jenkins

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee
Introduced:	March 18, 2003
Adopted:	March 18, 2003
Approved:	March 21, 2003
By: