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702-Orig Adm Order on Consent FOLEY:LARDNER 2~DZ))AR29 PM'}: ~7' C/~7~J'~6 original Administrative Order o~ Consent ~d Consent Decree The Comprehensive Enviromental Response, Compensation ~d Liability Act CCERCLA"), 42 USC 9601 et seq., co~only ~own ~ "Super~d", states ~at ~y p~y who o~ed or operated a Site where there has been a release ofh~dous subst~ces is s~ctly liable. EPA has dete~ined that ~e S~ford G~ Pl~t Site is a Super~d site ~d h~ n~ed each member of~e Group ~ a potend~ly responsible p~y under ~e Super~d law. h April 1998, the Group entered into ~ A~inis~ative Order on Consent (~e "First AOC") wi~ EPA that req~red Group mereben to complete ~ investigation of the extent of contmination in the soil, go~dwater ~d a potion of the sediment in L~e Mo~oe. The First AOC also required the Group to perfort a legibility study, including a risk ~sessment, to exmine all possible remedial actions necess~ to protect public health ~d ~e enviroment ~d to reco~end appropriate cle~up. TMs work is refe~ed to ~ a Remedi~ hvestigatio~easibility Study As a result of the ~S, EPA has di~ded ~e Gas Pl~t Site into ~ee operable ~its COUs") for p~oses of ev~uating ~d ~d~ing remedial action to cle~up or comain the contrainers at ~e Site. OU1 addresses soil impacts, OU2 relates to go~dwater impacts, ~d OU3 ad~esses sediment, including Cloud Broth Creek ~d ~e delta in L~e Mo~oe. h July 2000, EPA issued a Record of Decision CROD'D for OU1, w~ch selected a remedy for cle~up of soil contmination at the Site. Such remedy will involve excavating s~f~e soils to a~n a ce~ain cle~up goal ~d excavating "hot spots" (~eas of cont~inated subs~ace soils) that co~d cause contmination to go~dwater do~gg~ent of the Site. The excavated soils will be ~eated ~or ~sposed of off-site. The cle~up cost for OU1 (with a budget for potential cost ovens) is expected to be $5.6 million, of which the City of S~ford will pay 12.9632 percent, or $725,939.20. The Ci~'s shoe ofcle~up costs w~ established in a Second P~icipation A~eement mong membeB of~e Group. The OU1 work will be the most si~ific~t portion of the Site reme~ation efforts. h J~e 2001, ~e EPA issued a ROD for OU2, which selected a rem~y for cle~up of ~o~dwater con~ination at ~e Site. ~e remedy will req~re go~dwater mo~tofing for 10 ye~s ~d proposes to allow nat~al a~enuation to ~esolve ~y rem~ng go~dwater contamination. ~ Consent Decree for Overable Units No. 1 and 2 The implementation of the cle~up wMch h~ been approved for OU1 ~d OU2 requires members of~e Group to enter into ~ ~ Consent Decree M~ EPA. h ord~ to be~n a cle~up in ~e ~nter of 2002-03, work on r~edifl desi~ stapling is flready ~de~ay by the ~oup. Once ~e Cons~t Decree is executed by fll Group members, a reme~al desi~ work pl~ will be developed, a remedial action pl~ Mll be desired, con~tom will be selected, ~d ~e cle~up work will ultimately be implemented. A Statement of Work for OUI ~d OU2 is a~ached to the Co~t Decree ~ Exhibit D. 2 006.246357.1 FOLEY-'LARDNER The Consent Decree requires the Group to obtain either a surety bond, irrevocable letter of credit or other type of security in the amount of $6,080,252 within 30 days of the execution of the Consent Decree. Florida Power Corporation will obtain and post such surety, with actual payments for such cleanup work made by Group members based on a schedule set forth in the Second Participation Agreement. That Agreement calls for Group members to pay $2 million into an escrow account for the cleanup upon execution of the Consent Decree and for the remainder of the funds to be paid into the account in $1 million increments as needed. The City's share of the initial $2 million is $259,264, or 12.9632 percent. The Consent Decree also requires the Group to pay $142,512.05 in past response costs to EPA for work done by the agency. The City's share of those costs equals $17,814.01, or 12.5 percent (based on the first Participation Agreement). The City is also required to record in the public records of Seminole County, Florida, a notice to all future owners of City-owned property located within the Site that such property is contaminated. If the City ever conveys such property to a third party, the City must provide institutional controls on the land prior to transfer. In addition, the City must place certain covenants, conditions and restrictions on property within the Site that is owned by the City and must record such restrictions in the public record of Sere'mole County, Florida. By executing the RD/RA Consent Order for Operable Units No. 1 and 2, the City of Sanford and other Group members will be permitted by EPA to begin the long-awaited cleanup of soil and groundwater contam'mation at the Site. Development of the remedial design work plan has already been started. At the same time, Group members will select a contractor to conduct the cleanup work. The remediation work should begin in the winter of 2002-03. Because execution of the RD/RA Consent Decree attached hereto will allow the Group to begin Site cleanup, we recommend that the City Commission approve the execution of the document by the Mayor. 3 006.246357.1 THE UNDERSIGNED PARTY enters into this Consent Decree in the matter of United States v. Florida Power Corporation, Atlanta Gas Light Company, Florida Power and Ught Company, Fiorida Public Utilities Company and City of Sanford, relating to the Sanford Gasification Plant Superfund Site. FOR CITY OF SANFO~ SiValure: Date Name (print) Title: Mayor Address: City of Sanford 300 North Park Avenue .qsnFord, Florida 32771 Agent Authorized to Accept Service on Behalf of Above-signed Party: Name(print) Thomas K. Maurer, Esq. ~tle: Foley & Lardher Ad~ess: 111 North Orange Avenue Suite 1800 Orlando, Florida 32801 Phone Number: (407) 423-7656