TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve the City of North Port’s Participation in Phase 2 of the DuPont and 3M PFAS Public Water System Settlement and Authorizing the City Manager or Mayor, as Applicable Under the City Charter, to Execute all Documents Required, After Legal Review, Related to the City’s Participation, Engagement of Special Counsel, Acceptance of Settlement Funds, and all Other Documents Necessary and Related to the City’s Participation in the Settlement.
Recommended Action
Option 1: Approve the City of North Port’s participation in Phase 2 of the DuPont and 3M PFAS Public Water System Settlement and authorize the City Manager or Mayor, as applicable under the City Charter, to execute all documents required, after legal review, related to the City’s participation, engagement of special counsel, acceptance of settlement funds, and all other documents necessary and related to the City’s participation in the settlement.
City Commission Options
Option 1: Approve the City of North Port’s participation in Phase 2 of the DuPont and 3M PFAS Public Water System Settlement and authorize the City Manager or Mayor, as applicable under the City Charter, to execute all documents required, after legal review, related to the City’s participation, engagement of special counsel, acceptance of settlement funds, and all other documents necessary and related to the City’s participation in the settlement.
• Pros: The City may receive a portion of the Phase 2 PFAS settlement funds.
• Cons: The City will not be able to pursue its own legal action against DuPont and 3M.
Option 2: Deny the City of North Port’s participation in Phase 2 of the DuPont and 3M PFAS Public Water System Settlement.
• Pros: The City will be able to pursue its own legal action against DuPont and 3M.
• Cons: The City will be ineligible to receive any funds related to the Phase 2 PFAS settlement.
Background Information
Per- and Polyfluoroalkyl substances (PFAS) are a group of man-made chemicals that includes PFOA, PFOS, GenX, and many other chemicals. These are also known as Forever Chemicals that carry increased exposure risks.
The City has been identified as a possible Phase 2 claimant entitled to compensation from 3M and DuPont as part of a $12.5 billion settlement to compensate public water utilities from PFAS remediation.
The City Attorney recommends the City Commission authorize the City’s participation in the Phase 2 PFAS settlement, making the City eligible to receive a portion of the settlement funds. The City Attorney intends to engage Bartlett Law Offices as special counsel to allow the City to participate in the settlement with no upfront cost. Instead, the firm will be entitled to fee of one-third (33 1/3%) of gross amounts recovered.
Strategic Plan Pillar
Good Governance
Financial Impact
It is possible the City could receive a multimillion-dollar settlement.
If no settlement is received, the City shall not be obligated to pay legal fees. If the law firm advances any funds for PFAS water testing, the City will reimburse the law firm for those costs from budgeted funds in the Utilities Water account 420-6061-533-31-05.
Procurement
Engaging with outside counsel is exempt pursuant to Chapter 2, Administration, Article VIII, Procurement, Exemptions, Section 2-403(3)O, which applies to Legal Services.
Attachments:
None.
Prepared by: Rachel Cigich, Business Services Coordinator
Department Director: Michael Fuino, B.C.S., City Attorney