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HomeMy WebLinkAboutX-E-01 National Class Action Settlements - PFAS City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: November 6, 2023 Item: National Class Action Settlements - PFAS Council Actions Requested: Opt out of national class action settlements against 3M Company and EI DuPont de Nemours and Company. Background Information: Recently, multi-district litigation against 3M and DuPont has resulted in two proposed class action settlements being overseen by the US District Court in South Carolina. These national settlements are approximately $10.5B to $12.5B by 3M and $1.2B by DuPont. The amounts will be reduced by legal costs, fees, and administrative costs. Settlement payments would be paid over 9 years. The City of Hastings, as a public water system that has PFAS, is eligible to participate in the settlement. Under the settlement “calculator,” Hastings would receive between $2.7M and $4.6M from 3M and $260K and $440K from DuPont, likely on the lower end of these ranges. Please note: this is more than we had previously estimated but still far less than the estimated $69M to construct three treatment plants plus operation and maintenance of $880K to $1M per year, increasing over time. Participation in the class action settlement would preclude the City making additional claims against 3M and DuPont. We are presently working with the Minnesota Pollution Control Agency “superfund” process for additional investigation to determine if there is a direct link from the 3M Cottage Grove disposal site and Hastings’ drinking water supply. The opt out deadline for the DuPont settlement is December 4, 2023. The opt out deadline for the 3M settlement is December 11, 2023. If the City does not affirmatively opt out, the City will automatically be included in the settlement. Financial Impact: N/A Attachments: N/A X-E-01