TO: Honorable Mayor and Members of the City Council
FROM: Robin Kampmann, City Engineer
SUBJECT:
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Legal Services Agreement for Representation of the City in Civil Actions Related to PFAS in City Water Supply
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RECOMMENDED COUNCIL ACTION:
recommendation
That the City Council authorize the City Manager to negotiate and execute a legal services agreement with SL Environmental Law Group PC (SL), Madonna & Madonna, LLP (M&M), Douglas and London, P.C. (D&L), Taft Stettinius & Hollister, LLP (Taft), and Levin Papantonio Proctor Buchanan O’Brien Barr Mougey P.A. (Levin Papantonio). SL, M&M, D&L, Taft, and Levin Papantonio are collectively referred to as the “Firms” to represent the City in litigation against manufacturers and distributors of PFAS
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SUMMARY:
New federal and state environmental regulations require cities to test for and treat PFAS (often called "forever chemicals") in drinking water supplies. Constructing the necessary granular activated carbon filtration systems and maintaining compliance will require significant capital. Engaging specialized outside counsel allows the City to pursue cost-recovery litigation against the manufacturers of these chemicals under a contingency-fee basis, ensuring local taxpayers do not bear the full brunt of remediation costs.
PREVIOUS COUNCIL ACTION:
None
DISCUSSION:
PFAS are synthetic chemicals used for decades in industrial processes, consumer products, and fire suppressants (AFFF) because they resist heat, oil, and water. Because they break down very slowly, they accumulate in the environment and human body and are linked to severe health risks. Following EPA mandates, the City has tested its municipal water supply and detected PFAS levels at a stage where quarterly testing is required, and monitoring is needed. At this time, additional treatment steps are not required, but the City has started the process to proactively protect our water system.
Removing PFAS requires expensive, specialized water treatment infrastructure. Without litigation, the cost required for investigation, water treatment, and infrastructure operation will fall entirely on the City's water utility fund and its ratepayers.
Water utilities across the nation are pursuing claims against chemical manufacturers (e.g.,3M & DuPont), alleging that they knowingly concealed the dangers of PFAS and placed them into widespread use, contaminating water supplies. Thousands of civil cases have been filed and consolidated into federal multi-district litigation. Large-scale settlements have already been reached to compensate public water providers for treatment and monitoring costs.
Retaining counsel is necessary to access the multi-billion-dollar national settlements and pursue further damages to offset future operation and maintenance costs.
The proposed Resolution and Legal Services Agreement have been reviewed and approved as to form by the City Attorney.
CITY FISCAL IMPACT:
There will be no upfront legal fees; the proposed legal services agreement is structured on a contingency-fee basis. The law firm will only be compensated if the City successfully recovers funds through settlements
ATTACHMENTS:
1. Legal Services Agreement - Red Bluff