APPENDIX G

 

Local Government Guarantee Without Standby Trust

Made by a Local Government

 

 

            Guarantee made this December 7, 2005 by the County of Albemarle, Virginia, a local government organized under the laws of the Commonwealth of Virginia (herein referred to as guarantor), to the Virginia Department of Environmental Quality and to any and all third parties, and obliges, on behalf of the Albemarle County School Board.

 

Recitals

 

(1)        Guarantor meets or exceeds the local government bond rating test requirements of 40 CFR part 280.104.

 

(2)        The Albemarle County School Board owns or operates the following underground storage tank(s) covered by this guarantee: 

 

a)      Walton Middle School, 4217 Red Hill Road, Charlottesville, Virginia 22901 2 tanks

b)      Western Albemarle High School, 5941 Rockfish Gap Turnpike, Crozet, Virginia 22932 3 tanks

c)      Vehicle Maintenance Facility, 2045 Lambs Road, Charlottesville, Virginia 22901 2 tanks

 

This guarantee satisfies 40 CFR Part 280, Subpart H requirements for assuring funding for taking corrective action and/or compensating third parties for bodily injury and property damage caused by either sudden accidental releases, nonsudden accidental releases or accidental releases arising from operating the above-identified underground storage tank(s) in the amount of $10,000 for corrective actions and $30,000 for third party liability claims per occurrence and $40,000 annual aggregate.

 

(3)        Incident to our substantial governmental relationship with the Albemarle County School Board, guarantor guarantees to the Virginia Department of Environmental Quality and to any and all third parties and obliges that:

 

In the event that the Albemarle County School Board fails to provide alternative coverage within 60 days after receipt of a notice of cancellation of this guarantee and the Director of the Virginia Department of Environmental Quality has determined or suspects that a release has occurred at an underground storage tank covered by this guarantee, the guarantor, upon written instructions from the Director shall make funds available to pay for corrective actions and compensate third parties for bodily injury and property damage in an amount not to exceed the coverage limits specified above.

 

In the event that the Director determines that the Albemarle County School Board has failed to perform corrective action for releases arising out of the operation of the above-identified tank(s) in accordance with 40 CFR part 280, subpart F, the guarantor upon written instructions from the Director shall make funds available to pay for corrective actions in an amount not to exceed the coverage limits specified above. 

If the Albemarle County School Board fails to satisfy a judgment or award based on a determination of liability for bodily injury or property damage to third parties caused by sudden and/or nonsudden accidental releases arising from the operation of the above-identified tank(s), or fails to pay an amount agreed to in settlement of a claim arising from or alleged to arise from such injury or damage, the guarantor, upon written instructions from the Director, shall make funds available to compensate third parties for bodily injury and property damage in an amount not to exceed the coverage limits specified above.

 

(4)        Guarantor agrees that, if at the end of any fiscal year before cancellation of this guarantee, the guarantor fails to meet or exceed the requirements of the financial responsibility mechanism specified in paragraph (1), guarantor shall send within 120 days of such failure, by certified mail, notice to the Albemarle County School Board, as evidence by the return receipt.

 

(5)        Guarantor agrees to notify the Albemarle County School Board by certified mail of a voluntary or involuntary proceeding under Title 11 (Bankruptcy), U.S. Code naming guarantor as debtor, within 10 days after commencement of the proceeding.

 

(6)        Guarantor agrees to remain bound under this guarantee notwithstanding any modification or alteration of any obligation of the Albemarle County School Board pursuant to 40 CFR Part 280.

 

(7)        Guarantor agrees to remain bound under this guarantee for so long as the Albemarle County School Board must comply with the applicable financial responsibility requirements of 40 CFR part 280, Subpart H for the above identified tank(s), except that guarantor may cancel this guarantee by sending notice by certified mail to the Albemarle County School Board, such cancellation to become effective no earlier than 120 days after receipt of such notice by the Albemarle County School Board, as evidenced by the return receipt.  If notified of a probable release, the guarantor agrees to remain bound to the terms of this guarantee for all charges arising from the release, up to the coverage limits specified above, notwithstanding the cancellation of the guarantee with respect to future releases.

 

(8)        The guarantor's obligation does not apply to any of the following:

 

(a)    Any obligation of the Albemarle County School Board under a workers' compensation, disability benefits, or unemployment compensation law or other similar law;

 

(b) Bodily injury to an employee of the Albemarle County School Board arising from, and in the course of employment by the Albemarle County School Board;

 

(c) Bodily injury or property damage arising from the ownership, maintenance, use, or entrustment to others of any aircraft, motor vehicle, or watercraft;

             

(d) Property damage to any property owned, rented, loaned to, in the care, custody, or control of, or occupied by the Albemarle County School Board that is not the direct result of a release from a petroleum underground storage tank;

 

(e) Bodily damage or property damage for which the Albemarle County School Board is obligated to pay damages by reason of the assumption of liability in a contract or agreement other than a contract or agreement entered into to meet the requirements of 40 CFR part 280.93.

(9)        Guarantor expressly waives notice of acceptance of this guarantee by the Virginia Department of Environmental Quality, by any or all third parties, or by the Albemarle County School Board. 

 

            I hereby certify that the wording of this guarantee is identical to the wording specified in 40 CFR part 280.106(d) as such regulations were constituted on the effective date shown immediately below.

 

 

Effective date: ____________________________

 

County of Albemarle

__________________________________

Robert W. Tucker, Jr.

County Executive, County of Albemarle

 

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