Claim against EPA settled 20 years later
by JESSICA L. FINCH Associate Editor

Decades ago the Amherst Town Board decided to fight for money it believed it was owed by the federal Environmental Protection Agency. Monday, it had a victory.

Supervisor Satish Mohan said the town will be awarded $358,356 for the wastewater treatment plant that was built in the 1970s.

In one claim, the town sought $2,035,746 and prior to Monday had received $1.67 million.

"Money is always significant to us; any money due from the federal government is very important," Mohan said.

To date, the town has paid Zorc and Chase, the law firm hired to represent Amherst, more than $700,000. Deputy Supervisor Roy Wixson, who had been working on the case as well, said in March 2006 that Zorc and Chase recovered $2.15 million.

He also said the law firm had been successful in reducing the chargebacks requested by the EPA over the years.

The $2.15 million in 2006 was one of three appeals the town filed. The $358,000 awarded Monday finished a second claim and the third claim for $2 million can still be sought.

In Mohan's announcement he wrote, "As part of the award, the town won an increase in its eligibility ratio, the percentage of and administrative costs that are eligible for federal reimbursement."

Prior to Monday's announcement the town was at 95.55 percent and now stands at 99.32 percent.

The EPA had denied the $2 million claim for construction of covers for the plant's equalization tank because it claims that the town began work prior to approval from the EPA as stated in its regulations.

Mohan said that Zorc and Chase said a process exists to have that claim decided by another federal department, which has the power to waive the impact of that regulation in special circumstances.

"The Amherst Town Board will be asked to make a decision as to whether or not to pursue the $2 million claim and whether to see a modification of the attorney's retainer agreement at this time," Mohan said.

Currently Zorc and Chase has an annual fee capped at $75,000 and receives 15 percent of all money recovered.

The firm was hired in 1992 when Council Member Dan Ward was supervisor. Through the years Ward had requested ending the contract with the law firm and seeking alternative representation.

"When you are getting money you have to be happy, but that has to be measured against time and money spent," Ward said. "This has been a long-term dealing with them, it's almost too little, too late in terms of recovering."

He believes the town can do better and if there is still money owed by the EPA then the town should pursue it.

"We have an obligation ... we could be liable for waste and fraud if we don't pursue this," he said, adding that there is still the question of whether the money spent fighting for the claims would be more than what is received.

Ward had also suggested using the influence of federal elected officials who represent Amherst.

Mohan said that Wixson had been assigned to work on the claim, traveling to Washington D.C. to meet with Rep. Thomas Reynolds, R-Clarence, and EPA representatives.

"This is a big deal because the town has been trying to get the case settled for 20 years," Wixson said, adding there is still another opportunity to recoup the $2 million.

When the wastewater plant was built the town was told it was eligible for EPA funding. It wasn't until 1992 that Zorc and Chase was hired to pursue the claims.