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HomeMy WebLinkAboutResolution 5961-06-2024A RESOLUTION No. 5961-06 2024 AUTHORIZING THE WATER DEPARTMENT TO INCREASE THE AMOUNT OF COMPENSATION TO BE PAID TO THE LAW FIRMS OF MARTEN LAW LLP AND LLOYD GOSSELINK ROCHELLE & TOWNSEND, P.C. WHEREAS, per- and polyfluoroalkyl substances ("PFAS") are a class of man- made chemicals linked to negative health and environmental outcomes that have been discovered in the City of Fort Worth's drinking water sources; and WHEREAS, the U.S. Environmental Protection Agency promulgated rules regulating certain PFAS on April 8, 2024 under the Safe Drinking Water Act and on April 19, 2024, under the Comprehensive Environmental Response, Compensation, and Liability Act; and WHEREAS, the City of Fort Worth has incurred or will be forced to incur significant costs to treat its drinking water for PFAS; and WHEREAS, the City Council of the City of Fort Worth finds that it is in the public interest to continue to seek recovery for the costs of treating its drinking water for PFAS from certain manufacturers, distributors, and users of AFFF and/or PFAS responsible for contaminating the City's drinking water sources; and WHEREAS, the law firm of Marten Law LLP possess the required knowledge and expertise to assist the City with its claims and Lloyd Gosselink Rochelle & Townsend, P.C. has the requisite knowledge and expertise to act as local counsel; and WHEREAS, on October 31, 2023, the City Council adopted M&C 23-0915 to retain the law firm of Marten Law LLP as outside counsel for legal matters relating to class action litigation related to aqueous film forming foam products in an amount not to exceed $125,000; and WHEREAS, on April 9, 2024, the City Council adopted M&C 24-0298 to retain the law firms of Marten Law LLP and Lloyd Gosselink Rochelle & Townsend, P.C. as outside counsel for legal matters relating to class action Iitigation related to aqueous film forming foam products in an amount not to exceed $375,000.00; and WHEREAS, to date, the cost of Iegal services by Marten Law LLP, as outside counsel to provide legal representation regarding class action litigation related to aqueous film forming foam products, has been approximately $350,000.00; and WHEREAS, the litigation against manufacturers, distributors, and users of AFFF and/or PFAS will be initiated within the year and it is estimated that an additional amount of $500,000.00 beyond the current authorized $375,000.00 will be needed for the legal services necessary to initiate the litigation in state and/or federal court. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS, THAT: 1. The compensation authorized to be paid to the Law Firm of Marten Law LLP and LIoyd GosseIink Rochelle & Townsend, P.C. as outside counsel, to provide legal representation regarding any litigation against any applicable manufacturers, distributors, and/or users of AFFF and/or PFAS, is hereby increased from $375,000.60 to $875,000.00. Adopted this 11 th day of June 2024 ATTEST: By: Jannette S. Goodall, City Secretary City of Fort Worth, Texas Mayor and Council Communication DATE: 06/11/24 M&C FILE NUMBER: M&C 24-0510 LOG NAME: 60INGREASE FUNDING FOR MARTEN LAW LLP AND LLOYD GOSSELINK SUBJECT (ALL) Adopt Resolution Increasing Compensation Paid to Marten Law LLP and Lloyd Gosselink Rochelle & Townsend, P.C., by $500,000.00 For a Total Amount Not to Exceed $875,000.00 for Legal Services Related to Litigation Against Manufacturers, Distributors, and/or Users of Aqueous Film -Forming Foam Products and/or Per -and Polytiuoroalkyl Substances Involving the Water Department RECOMMENDATION: It is recommended that the City Council adopt the attached resolution increasing the compensation paid to Marten Law LLP and Lloyd Gosselink Rochelle & Townsend, P.C., by $500,000.00 for a total amount not to exceed $875,000.00 for legal services for the Water Department involving litigation against the manufacturers, distributors, and/or users of aqueous film forming foam products and/or per -and polyfiuoroalkyl substances. DISCUSSION: On October 31, 2023, by Mayor and Council Communication (M&C) 23-0915 and Resolution No. 5834-10-2023, the City Council approved the Law Firm of Marten Law LLP, as legal counsel to provide representation regarding the City's status as a class member in federal multi -district class action litigation (MDL) in which E.I. DuPont de Nemours and Company and the 3M Company are defendants, the amount was $125,000.00. On November 28, 2023, by Resolution No. 5850-11-2023, the City Council authorized the commencement of litigation in the MDL against 3M, DuPont, other Aqueous Film -Forming Foam (AFFF) manufacturers, and other necessary defendants including, but not limited to, the United States Department of Defense, after fulfilling Federal Tort Claims Act jurisdictional prerequisites. On April 9, 2023, by Resolution 5930-04-2024, the City Council authorized the City to retain Marten Law LLP and Lloyd Gosselink Rochelle & Townsend, P.C. and increased the total compensation paid to Marten Law LLP and Lloyd Gosselink Rochelle & Townsend, P.C, by $250,000.00, for a total amount of $375.000.00, The City continues to anticipate litigation will commence by the end of 2024. Marten Law LLP has performed additional work in order to satisfy jurisdictional prerequisites. Once suit is filed after satisfying jurisdictional prerequisites, there will likely be more fees generated necessitating future M&Cs for increased funding. Adoption of this resolution will increase the amount of compensation to be paid to the Law Firms of Marten Law LLP and Lloyd Gosselink Rochelle & Townsend, P.C., by $500,000.00, fora total amount of $875,000.00. Funding is budgeted in the Operating & Maintenance category in the Water and Sewer Fund for the Water Department. FISCAL NFORMATION 1 CERTIFICATION: The Director of Finance certifies that upon approval of the recommendation, funds are available in the current operating budget, as previously appropriated, in the Water and Sewer Fund. Prior to an expenditure being incurred, the Water Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office by: ALL ACMs 6122 Originating Business Unit Head: Leann Guzman 8973 Additional Information Contact: Leann Guzman 8973