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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

Region L 5 Post Office Square, Suite 100 Boston, MA 02109-3912

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VIA TiNITED PARCEL SERVICE .NEXT DAY PELIVERY

12

2010

City of Derby, Connecticut c/o of Mayor Tony Staffieri 1 Elizabeth Street Derby, CT 06418

Re:

Demand for Reimbursement of Costs Expended althe O'Sullivan's Island Site in Derby, Connecticut

Dear Mayor Staffieri:

The United States Environmental Protection Agency ("EPA') previously contacted the City regarding activities connected with the O'Suilivan's Island Site located in Derby, Connecticut. A copy of EPA past correspondence is attached for your reference. ln our letter, dated August 21, 2008, EPA informed the Citythat it may be liable for money expended by EPA for response actions at this Site under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA," commonlyknown as the federal Superfund law). At that time, EPA also offered the City the opportunity to take voluntary actions necessary to abate any releases or threats of release of hazardous substances from the Site or to reimburse EPA for response actions taken. Because the City did not undertake the necessary actions, EPA expended funds under the authority of CERCLA to clean up the Site.

Explanation of Potential Liabilifv

Under Section 1,07(a) of CERCLA, PRPs may be held liable for all costs incurred by the EPA (including interest) in responding to any release or threatened release of hazardous substances at the Site, unless the PRP can show divisibility or any of the other statutory defenses. PRPs include curent and former owners and operators of the Site, as well as persons who arranged for treatment andlor disposal of any hazardous substances found ui th" Site, and persons who acceptedhazardous substances for transport and selected the site to which thehazatdous substances were delivered.
Based on the information collected, EPA believes that the City may be liable under Section 107(a) of CERCLA with respect to the O'Sullivan's Island Site, as current or previous owner andlor operator of the Site'

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To date, EPA has taken response actions at the Site under the authority of Superfirnd Program. Below is a brief description of the actions taken at the Site.
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. . .

A Preliminary Assessment and Site lrvestigation (PA/SI) in order to gain a basic understanding of any risks posed to human health and the environment by. releases or threatened reieases from the Site. A Removal Action, conducted to reduce any immediate thieat to the
environment or human health.

Demand for Reimbursement of Costs In accordance with Section 104 of CERCLA, EPA has alreadytaken certain response actions, which are listed above, and incurred certain costs in response to at the Site. EPA is seeking to recover from the City its response costs and ail "orrditioo, the interest authorized to be recovered under Section I07(a) of CERCLA. To date, the approximate total response costs identified through June 8, 2010 for the Site are a demand for $+,0+q,SO3 .22.r rJnier Section 107(a) of CERCLA, EPA herebymakes payrnent from the City for the above amount plus all interest authorized to be recovered
under Section 107(a).

While this letter demands that the City reimburse EPA for all funds spent at the Site, EpA is aware that the financial ability of some PRPs to contribute toward the of response costs at a site may be substantially limited. If you believe, and can payment -dotument, that the City falls within this category, please contact Senior Enforcement Counsel Cynthia A. Lewis at U.S. EPA Region I, 5 Post Office Square, Suite 100, Mail Code OES-04-3, Boston, Massachusetts 02109, or at (617) 918-1889, for information on "Ability to Pay Settlements. " ln response, you will receive a package of information about such settlements and a form to fillout with information about the City's finances, and you willbe asked to submit financial"records in support of your claim' If EPA that the city has a legitimate inability to pay the full amount, EPA may offer a "orr.lrrd., schedule for payment over time or a reduction in the total amount demanded from the City.
Some or all of the costs associated with this notice may be covered by current or past insurance policies issued to the City. Most insurance policies will require that you iimely notify the carrier(s) of a claim against the City. To evaluate whether the City shouid notifli its insurance carrier(s) of this demand, the Citymay wish to review current and past pollcies, begrnning with the date of the City's firstcontact with the O'Sullivan's Island Siie, up to the present. Coverage depends on many factors, such as the language of the particular policy and state law' Please send a written response to this cost recovery demand, within thirty (30) days, to:
does not include prejudgment interest. costs. payrnent of for demand this of the date from IntereJt-accumuiates
1

A copy of the IFMS Cost Summary is attached. The summary

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Senior Enforcement Counsel Cynthia A. Lewis U.S, EPA Region I 5 Post Office Square, Suite i00. Maii Code OES04-3 Boston, MA 02109 lewis.cindy@epa.gov
please also cc: Sharon C. Fenneliy, Enforcement Coordinator

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mr BY:-

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U.S. EPA Region I

5 Post Office Square. Suite 100.

Mail Code OSRR02-2

Boston, N4,4. 02109 Fennelly. sharon@epa. gov

If

a response

from the City is not received within thirfy (30) days, EPA will

assume that the City has declined to reimburse the Superfund for the Site expenditures, and purzuant to CERCLA, EPA may pursue civil litigation. Please give these matters your immediate attention and consider consulting

with

questions regarding this letter, please contact Senior Enforcement Counsel Cynthia A. Lewis whose contact information is listed above.
an attorney.

If you have any

Sincerely,

T.-Ofens. III Director, Office of Site Remediation and Restoration

Enciosures Sharon C. Fennelly, Enforcement Coordinator, OSRR02-2 Cynthia A. Lewis, Senior Enforcement Counsel, OES04-3 Joseph Coppola, Esq.

Corporate Counsel Derby City Hall 7 Elizabelh Street Derby, CT 06418