passed ordinance

*Authorize the City Attorney to enter a Consent Decree in U.S. Federal Court to settle natural resource damage claims and pay settlement process costs

infrastructure utilities
climate environment
claim settlement

Department: City Attorney Environmental Services
Introduced by: Former Mayor Ted Wheeler Former Commissioner Mingus Mapps
Status: Passed

Impact statement

Purpose & background

This ordinance authorizes the City Attorney to sign a consent decree settling claims of natural resource damages at the Portland Harbor Superfund Site. The settlement is between the City and the Portland Harbor Natural Resource Trustee Council. The Trustee Council consists of the National Oceanic and Atmospheric Administration acting on behalf of the U.S. Department of Commerce, U.S. Fish and Wildlife acting on behalf of the U.S. Department of Interior, Oregon Department of Fish and Wildlife acting on behalf of the State of Oregon, Confederated Tribes of the Grand Ronde Community of Oregon, Confederated Tribes of the Siletz Indians, Confederated Tribes of the Umatilla Indian Reservation, Confederated Tribes of the Warm Springs Reservation of Oregon, and Nez Perce Tribe. The ordinance authorizes the Mayor and City Auditor to pay the costs billed to the City by the Trustee Council from any remaining funds authorized by Ordinance 186810 passed on October 1, 2014 and up to $400,000 of additional funds chargeable to the General Fund. Funding for activities that are credited towards the City’s final settlement have been ongoing since 2003 and most recently include expenditures authorized by Ordinance 180894 passed on April 18, 2007, Ordinance 186810 passed on October 1, 2014 and Ordinance 186893 passed by Council on November 19, 2014. The City has provided funding towards development of the Trustee Council’s overall restoration approach including an integrated restoration strategy, analysis of environmental impacts associated with the potential restoration efforts and assessment of damages to natural resources. The City also helped fund the establishment of a restoration site. The current ordinance is anticipated to be the final costs associated with the settlement of Portland Harbor Natural Resource Damage claims by the Trustee Council. The estimate of funds needed has a moderate to high level of confidence that it will be sufficient.

Financial impacts

This legislation will not generate or reduce current or future revenue to the City. The legislation authorizes additional spending for payment of process costs expected to be assessed to the City by the Trustee Council to conclude the settlement process and obtain a final judgement from the U.S. Federal District Court. The process costs fund the U.S. Department of Justice’s and Trustee Council’s legal and administrative work to complete and file the consent decree. Each Trustee will invoice the City for its share of process costs after the effective date of the final order. The duration of the court process is not known but the invoice is not expected before the beginning of fiscal year 2023-24.

Community impacts

This is a legal action to file a consent decree and pay process costs associated with that filing.

▸ Full text (the legislation as adopted)

The City of Portland ordains: Section 1. The Council finds: The City has been notified by the U.S. Environmental Protection Agency and the Portland Harbor Natural Resource Trustees (Trustee Council) of its potential liability for natural resource damages at the Portland Harbor Superfund Site. The Trustee Council consists of the National Oceanic and Atmospheric Administration acting on behalf of the U.S. Department of Commerce, U.S. Fish and Wildlife acting on behalf of the U.S. Department of Interior, Oregon Department of Fish and Wildlife acting on behalf of the State of Oregon, Confederated Tribes of the Grand Ronde Community of Oregon, Confederated Tribes of the Siletz Indians, Confederated Tribes of the Umatilla Indian Reservation, Confederated Tribes of the Warm Springs Reservation of Oregon, and Nez Perce Tribe. The City participated in settlement discussions with the Trustee Council regarding natural resource damage claims pursuant to a Funding and Participation Agreement authorized by Ordinance 186810 passed by Council on October 1, 2014. The settlement discussions with the Trustee Council have resulted in a consent decree to be filed in U.S. Federal District Court. The City and other parties that are settling with the Trustee Council are obligated by the U.S. Department of Justice to maintain the confidentiality of the settlement terms until it is filed in U.S. Federal District Court. The City has funded the Trustees’ settlement process and associated habitat restoration work since 2003 and those activities and payments will be credited to the City’s final settlement obligations. Funding for activities that are credited towards the settlement and funding of process costs has been ongoing since 2003 and most recently include those authorized by Ordinance 180894 passed April 18, 2007, Ordinance 186810 passed on October 1, 2014, and Ordinance 186893 passed by Council on November 19, 2014. At the conclusion of the Court process, the Trustee Council will invoice the City for its share of the Trustee Council’s process costs through the effective date of the consent decree. This invoice is expected no earlier than FY23/24. The City wishes to settle its natural resource damage liabilities and facilitate the restoration of natural resources in Portland Harbor and thus, it is in the best interests of the City to join this first group settlement with the Trustee Council. NOW, THEREFORE, the Council directs: The City Attorney or designee in consultation with the Mayor, is authorized to enter a consent decree with Portland Harbor Natural Resource Trustees to settle Portland Harbor Natural Resource Damage Claims against the City requiring payment by the City in excess of $5,000. The Mayor and Auditor are hereby authorized to pay the costs billed to the City by the Portland Harbor Natural Resource Trustees from any remaining funds authorized by Ordinance 186810 and up to $400,000 of additional funds chargeable to the General Fund. Section 2. The Council declares that an emergency exists because the settlement offer is time sensitive; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

Tally

4 yea 0 nay 1 other