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HomeMy WebLinkAbout2023-1115A Aqueous Liablility Litigation Opt-OutResolution No. 2023-1115A Aqueous Film -Forming Forms Liability Litigation Opt -Out RESOLUTION NO. 2023-1115A TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 RESOLUTION TO OPT -OUT OF AQUEOUS FILM -FORMING FOAMS PRODUCTS LIBABILITY LITIGATION WHEREAS, Trophy Club Municipal Utility District No. 1 (the "District") is a conservation and reclamation district, and a political subdivision of the State of Texas, created under Article XVI, Sec. 59 of the Texas Constitution by order of the Texas Water Commission, now the Texas Commission on Environmental Quality ("TCEQ"), and the District operates under Chapters 49 and 54 of the Texas Water Code, as amended; WHEREAS, the District purchases about 80% of its water from the City of Fort Worth, and the remaining water supply comes from four groundwater wells; WHERESAS, the District provides public drinking water to over 13,000 people inside and outside the District; WHEREAS, there are two class action products liability cases pending in the United States District Court for the District of South Carolina Charleston Division relating to PFAS: City of Camden, et al. v. E.I. DuPont de Nemours and Company, et al., No. 2:23-cv-03230-RMG and City of Camden, et al. v. 3M Company, No. 2:23-cv-03147-RMG; WHEREAS, the class representatives in the pending cases have alleged that they have suffered harm resulting from the presence of PFAS in drinking water and the defendants are liable for damages and other forms of relief to compensate for such harm and costs; WHEREAS, the class representatives and the defendants have entered into a settlement agreement to resolves the claims related to PFAS contamination of the drinking water in public water supply systems; WHEREAS, the settlements apply to all public water system as that term is defined in the settlements, and includes "All Active Public Water Systems in the United States that do not have one or more Impacted Water Sources as of July 22, 2023, and (i) are required to test for certain PFAS under UMCR-5, or (ii) serve more than 3,300 people according to SDWIS;" WHEREAS, the District meets this definition and is listed in Amended Exhibit E: Phase Two Eligible Claimants to the Settlement Agreement between Public Water Systems and 3M Company; WHEREAS, unless a public water system specifically opts -out of the settlements by the 1 of 3 Resolution No. 2023-1115A Aqueous Film -Forming Forms Liability Litigation Opt -Out deadlines provided in the Notices of Proposed Class Action Settlement and Court Approval Hearing, the public water system will remain in the settlement class and as such release certain claims against the defendants and will prevent the public water system from bringing any claims against the defendant resolved by the settlement agreements; WHEREAS, a public water system that opts -out is not bound by an orders or judgments effecting the settlements; WHEREAS, the City of Fort Worth has recommended that its wholesale water supply customers opt -out of the settlements; WHEREAS, The Board of Directors believes it is in the best interest of the District to opt -out of the settlements because the indemnity clause is overly broad and the amounts of the settlements may be insufficient to cover PFAS-related damages; and NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: Section 1. The Board of Directors hereby opt -out of the proposed settlements in City of Camden, et al. v. E.I. DuPont de Nemours and Company, et al., No. 2:23-cv-03230-RMG and City of Camden, et al. v. 3M Company, No. 2:23-cv-03147-RMG. Section 2. The Board of Directors hereby directs the General Manager and the General Counsel to execute and file all such documents necessary to opt -out of the proposed settlements as directed by the Board of Directors. Section 3. The President and Secretary of the Board are hereby authorized and directed to execute this Resolution. After this Resolution is executed, an original Resolution shall be filed in the permanent records of the District. 2 of 3 Resolution No. 2023-1115A Aqueous Film -Forming Forms Liability Litigation Opt -Out RESOLVED, PASSED AND APPROVED this 15th day of November 2023. Doug Harper, Secretary/Treasurer Board of Directors ATTEST: a rie Slaght, District/Se retary 3 of 3 Kevin R. Carr, President Board of Directors �,,\\‘11i111/1////,, .tib`` `l CLUB !I/, +v. II/ ,i/ 0 .* b..�(,t3P '1./•. �J •0 (se t�Ge �� i I -c:. t' ` 1 1:::::.......:</?.): . • .; Acs •e •V,-• �°,`: ';'''',,,,,,,3/J S TR RIGI , \\.\,ti