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File #: 081719    Version: 0
Type: Resolution-Immediate Adoption Status: Passed
File created: 4/14/2009 In control: COMMON COUNCIL
On agenda: Final action: 4/14/2009
Effective date:    
Title: Resolution authorizing the Commissioner of Health to approve expenditures of funds from an escrow account held by the United States for purposes related to the city’s lead abatement program.
Sponsors: ALD. DONOVAN
Indexes: HEALTH DEPARTMENT, LEAD ABATEMENT, LITIGATION
Attachments: 1. Affidavit from Health Department.pdf, 2. Order for Civil Contempt - Sherard.pdf

Number

081719

Version

ORIGINAL

Reference

 

Sponsor

ALD. DONOVAN

Title

Resolution authorizing the Commissioner of Health to approve expenditures of funds from an escrow account held by the United States for purposes related to the city’s lead abatement program.

Analysis

The United States Attorney for the Eastern District of Wisconsin has requested that the Health Commissioner provide assistance in disbursing monies from an escrow account to be held and administered by the United States for purposes of lead-based paint risk assessment and abatement.  The Commissioner has been asked to provide direction to the United States Attorney, or his or her designee, related to the amounts to be paid and the parties to be paid for lead assessment and abatement purposes at City residential properties that are the subject of a law suit brought by the United States against Will J. Sherard and W. J. Sherard Realty Company (defendants).  Funds to be placed in escrow are related to penalties for continuing violation by the defendants of a Civil Contempt Order.

 

The Health Department may be entitled to payment in connection with escrow-related activities and lead-based paint hazard risk assessment and abatement of the subject properties.

 

This resolution authorizes the Commissioner of Health to provide direction to the United States Attorney relating to the proposed escrow account.  The resolution further provides that the Commissioner may accept payments from escrow. The resolution does not authorize an expenditure. Expenditures may be authorized by separate resolution.

Body

Whereas, The United States Attorney for the Eastern District of Wisconsin brought legal action against Will J. Sherard and W. J. Sherard Realty Company (defendants) in Case No. 05-C-0486 in the United States District Court seeking to compel the defendants to abate lead-based paint hazards on approximately 40 residential properties located in the City of Milwaukee; and

 

Whereas, A Consent Decree was entered in this legal action and a Court Order was issued in May of 2007 requiring defendants to undertake lead-based paint hazard risk assessments for each property, and to subsequently abate identified hazards; and

 

Whereas, A Civil Contempt Order was entered on July 3, 2008, for failure of the defendants to comply with the consent decree; and

 

Whereas, The Civil Contempt Order provided monetary penalties for continuing delays in compliance; and

 

Whereas, The United States Attorney’s office has informed the City Attorney and the Commissioner of Health that it intends to establish an escrow account under control of the United States Attorney for receipt of amounts owed by defendants as a result of the Consent Decree and Court Orders; and

 

Whereas, The United States Attorney’s Office, intending that funds in the escrow account be expended for lead-based paint risk assessment and abatement, has further requested that the Commissioner of Health provide direction relating to expenditure of amounts from the proposed escrow account; and

 

Whereas, Providing the direction requested by the United States Attorney’s Office furthers the successful collaboration between the Health Department and the United States in lead-based hazard abatement in the City of Milwaukee; now, therefore, be it

 

Resolved, That the Commissioner of Health is authorized to provide direction to the United States Attorney, or his or her designees, relating to the proper disbursement from escrow held by the United States Attorney for the purpose of lead-based paint hazard risk assessment and abatement; and, be it

 

Further Resolved, That the Commissioner may direct the amounts to be paid and the companies, corporations, individuals or other entities to be paid relating to lead-based paint hazard assessment and abatement activities, and maintaining an itemized record thereof; and, be it

 

Further Resolved, That if the Commissioner determines that the City should be reimbursed for expenses in the administration of the United States escrow account, or in the assessment and abatement activities that are the intended purpose of the escrow, then the Commissioner is authorized to accept payment from the escrow; and, be it

 

Further Resolved, That the City Comptroller is authorized to take appropriate action to establish proper account values upon receipt of moneys by the Commissioner of Health from the United States escrow account, to be expended under separate resolution.

Requestor

 

Drafter

LRB09032-1

RLW

4/10/2009