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HomeMy WebLinkAboutResolution 5743-06-2023A Resolution NO. 5743-06-2023 AUTHORIZING THE EMPLOYMENT OF EILAND & BONNIN, P.C., BARON & BUDD, AND COSSICH, SUMICH, PARSIOLA & TAYLOR AS OUTSIDE LEGAL COUNSEL TO REPRESENT THE CITY ON A CONTINGENCY FEE BASIS FOR CLAIMS RELATED TO FIREFIGHTING FOAM PRODUCTS AND/OR OTHER PRODUCTS CONTAINING PERFLUOROALKYL SUBSTANCES ("PFAS") INCLUDING PFOS (PERFLUOROOCTANE SULFONIC ACID) AND PFOA (PERFLUOROOCTANIC ACID), AND RELATED COMPOUNDS WHEREAS, City of Fort Worth, Texas intends to pursue claims for monetary damages, declaratory relief, and other legal remedies ("Damages") against manufacturers, designers, marketers, distributors, formulators, promoters, and/or sellers of firefighting foam products (known as "aqueous film -forming foam" or "AFFF") and/or other products containing perfluoroalkyl substances ("PFAS") including PFOA (perfluorooctane sulfonic acid) and PFOA (perfluorooctanic acid), and related compounds (collectively, "Defendants") as determined for the cost of testing, monitoring, remediating and/or treating soil and groundwater contamination (the "Litigation"); and WHEREAS, City of Fort Worth, Texas' desired outcome in the Litigation is to recover from the Defendants Damages owed to City of Fort Worth, Texas for the possible soil and groundwater contamination by the Defendants' products, in addition to other relief allowed under the law; and WHEREAS, the Defendants manufactured, designed, marketed, distributed, formulated, promoted and or sold firefighting foam and/or other products containing perfluoroalkyl substances ("PFAS") including PFOA (perfluorooctane sulfonic acid) and PFOA (perfluorooctanic acid), and related compounds; and WHEREAS, the Defendants' products have been proven to contaminate soil and groundwater; and WHEREAS, City of Fort Worth, Texas has a substantial need for the legal services of counsel to represent it in the Litigation; and WHEREAS, City of Fort Worth, Texas requires legal counsel that specialize in complex litigation and are highly knowledgeable and experienced in the legal issues surrounding PFAS and AFFF; and WHEREAS, City of Fort Worth, Texas now desires to enter into a contingent fee contract ("Contract") for legal services with EILAND & BONNIN, P.C., BARON & BUDD, and COSSICH, SUMICH, PARSIOLA & TAYLOR ("Counselors") to represent City of Fort Worth, Texas in the Litigation; and WHEREAS, Subchapter C of Chapter 2254 of the Texas Government Code ("Chapter 2254") requires that a political subdivision of the State of Texas, including City of Fort Worth, Texas, may enter into a contingent fee contract for legal services only after: (i) the governing body of the political subdivision has provided written notice to the public stating certain provisions enumerated within Chapter 2254; (ii) the governing body of the political subdivision approved such contract in an open meeting called, in part or in whole, for the purposes of considering such contract; and (iii) the governing body of the political subdivision stated in writing certain findings made by the governing body upon the approval of such contract; and WHEREAS, before the contingent fee contract for the legal services is effective and enforceable, City of Fort Worth, Texas must receive approval of the Contract by the Office of the Attorney General of Texas; and WHEREAS, City of Fort Worth, Texas has caused notice of this resolution, this meeting, and certain provisions enumerated within Chapter 2254 to be provided to the public in accordance with the Texas Open Meetings Act and Chapter 2254; and WHEREAS, the meeting at which this resolution is being considered in an open meeting called, in part or in whole, for the purpose of considering: (i) the City's need for legal counsel to represent it in the Litigation; (ii) terms of the Contract; (iii) the competence, qualifications, and experience of the Counselors; and (iv) the reasons that the Contract is in the best interest of City of Fort Worth, Texas and complies with Chapter 2254; and WHEREAS, the City Council of City of Fort Worth, Texas hereby finds and determines that the adoption of this resolution is in the best interests of the residents of City of Fort Worth, Texas. NOW, THEREFORE, BE IT RESOLVED BY the City Council for City of Fort Worth, Texas: SECTION 1. That the recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this resolution for all purposes and are adopted as a part of the judgment and findings of the City Council for City of Fort Worth, Texas. SECTION 2. That the City Council for City of Fort Worth, Texas hereby finds that: (i) there is a substantial need for the legal services to be provided in the Litigation; (ii) the legal services to be provided in the Litigation cannot adequately be performed by the attorneys and supporting personnel currently employed by City of Fort Worth, Texas staff; (iii) the legal services to be provided in the Litigation cannot reasonably be obtained from attorneys in private practice under a contract providing only for the payment of hourly fees, without regard to the outcome of the matter, because of the nature of the Litigation and without imposing an unnecessary cost and burden on City of Fort Worth, Texas' finances; and (iv) the relationship between the City or the City Council and the Counselors is not improper and would not appear improper to a reasonable person. SECTION 3. That based on the findings by the City Council for City of Fort Worth, Texas described above, the City Council for City of Fort Worth, Texas hereby authorizes the City Manager's Office to execute a legal services contract with EILAND & BONNIN, P.C., BARON & BUDD, and COSSICH, SUMICH, PARSIOLA & TAYLOR, and any other documents in connection therewith, approved as to form by the City, effective only upon approval by the Office of the Attorney General of Texas. SECTION 4. That it is officially found, determined, and declared that the meeting at which this resolution is adopted way open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this resolution, was given, all as required by Chapter 55I as amended, Texas Government Code. SECTION 5. That the City will pay the Counselors a contingency fee (which shall be inclusive of all expenses) in accordance with the rates in Attachment A to this resolution and contingent upon the recovery, if any, by the City in the Litigation. SECTION 6. That this Resolution shall take effect immediately from and after its passage in accordance with the provisions of the City Council and City of Fort Worth, Texas, and it is accordingly so resolved. Adopted this 13" day of June, 2023. ATTEST: oo�'— PO '4 a �000 O���j C()000000,0 �O .A By'------------------------------------��o o Jannette S. Goodall, City Secretary 0 o 0,V Vp �P G oy G ATTACHMENT A The fees for legal services provided by the Counselors in connection with the Litigation are contingent upon the recovery by City of Fort Worth, Texas of Damages in the Litigation and will be paid out of such recover, if any, as follows: If the Counselors obtain a recovery and collection on behalf of City of Fort Worth, Texas the Counselors will receive attorneys' fees and expenses in the amount of Thirty -Five percent (35%) of the gross recovery The Counselors will advance all costs associated with the Litigation. Any expenses shall be recovered as part of the 35% fee and not reimbursed further by the City. City of Fort Worth, Texas Mayor and Council Communication DATE: 06/13/23 M&C FILE NUMBER: M&C 23-0445 LOG NAME: 12EILAND & BONNIN SUBJECT (ALL) Adopt a Resolution Authorizing the City Attorney to Retain the Law Firms of EILAND & BONNIN, P.C., BARON & BUDD, and COSSICH, SUMICH, PARSIOLA & TAYLOR as Outside Legal Counsel to Represent the City on a Contingent Fee Basis for Claims Related to Firefighting Foam Products and/or Other Products Containing Perfluoroalkyl Substances Including Perfluorooctane Sulfonic Acid and Perfluorooctanic Acid, and Related Compounds RECOMMENDATION: It is recommended that the City Council adopt the attached resolution approving the retention of EILAND & BONNIN, P.C., BARON & BUDD, and COSSICH, SUMICH, PARSIOLA & TAYLOR as outside legal counsel to assist and represent the City of Fort Worth in matters related to claims for monetary damages, declaratory relief, and other legal remedies against manufacturers, designers, marketers, distributors, formulators, promoters, and/or sellers of firefighting foam products and/or other products containing perfluoroalkyl substances including perfluorooctane sulfonic acid and perfluorooctanic acid, and related compounds. DISCUSSION: The City intends to pursue claims for monetary damages, declaratory relief, and other legal remedies against manufacturers, designers, marketers, distributors, formulators, promoters, and/or sellers of firefighting foam products, known as aqueous film -forming foam and/or other products containing perfluoroalkyl substances including perfluorooctane sulfonic acid and perfluorooctanic acid, and related compounds as determined for testing, monitoring, remediating and/or treating soil and groundwater contamination. The City's desired outcome in pursuing the Litigation is to recover from the Defendants damages owed to the City for the cost and expense of testing, monitoring, remediating, and/or treating soil and groundwater contamination, in addition to other relief allowed for the costs and expense of testing, monitoring, remediating and/or treating soil and groundwater contamination under the law. Therefore, there is substantial need for legal services. The City wishes to engage the following three law firms: EILAND & BONNIN, P.C., BARON & BUDD, and COSSICH, SUMICH, PARSIOLA & TAYLOR as CO -LEAD COUNSEL. The relationship with the three Counselors would span from the time of engaging them in the Litigation until it is completed. The City has no prior relationship with the Counselors. These lawyers have the experience necessary to handle such litigation as this. Payment will be on a contingency -fee basis and litigation expenses by Counselors will be deducted from settlement only upon recovery. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of this recommendation will have no material effect on City funds. Submitted for City Manager's Office by: ALL ACMs 6122 Originating Business Unit Head: Leann Guzman 8973 Additional Information Contact: Leann Guzman 8973 Expedited