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An ordinance accepting and appropriating Public Water System Settlement Funds from the 3M Company to the Metropolitan Department of Water and Sewerage Services.
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WHEREAS, Per- and polyfluoroalkyl substances (“PFAS”) are a large and diverse group of man-made chemicals that have unique properties, such as resistance to high and low temperatures, resistance to degradation, and non-stick characteristics; and,
WHEREAS, the Metropolitan Government of Nashville and Davidson County, through the Metropolitan Department of Water and Sewerage Services, joined a class action lawsuit against 3M Company (“3M”) over contamination to U.S. public water drinking systems; and,
WHEREAS, 3M has agreed to settle water provider claims on a claims-wide basis (“3M Public Water System Settlement”); and,
WHEREAS, though MWS has detected trace amounts of PFAS in source water, MWS has never detected PFAS in finished drinking water, and is committed to removing PFAS to protect the public health and safety of citizens of Nashville and Davidson County; and,
WHEREAS, though MWS will receive a partial payment in the amount of $644,832.60, the anticipated full settlement amount is approximately $3.8 million dollars; and,
WHEREAS, MWS will also receive a PFAS settlement from DuPont; and,
WHEREAS, it is in the best interest of the Metropolitan Government of Nashville and Davidson County to accept the Public Water System Settlement funds.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The Metropolitan Government of Nashville and Davidson County, through the Metropolitan Department of Water and Sewerage Services, is hereby authorized to accept the Public Water System Settlement Funds and appropriate $644,832.60 in Public Water System Settlement Funds from the 3M Company into the Water and Sewer Revenue Fund No. 67311 Business Unit 65525000.
Section 2. That the Metropolitan Government of Nashville and Davidson County, through the Metropolitan Department of Water and Sewerage Services, is hereby authorized to accept any additional Public Water System Settlement Funds from the 3M Company and DuPont and to appropriate the funds to the Water and Sewer Revenue Fund No. 67311 Business Unit 65525000.
Section 3. That the director of the Department of Water and Sewerage Services or his designee is authorized to execute such documents as may be necessary to accept and appropriate Public Water System Settlement Funds as authorized by this ordinance.
Section 4. Amendments to this legislation shall be approved by resolution.
Section 5. This ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This ordinance accepts and appropriates Public Water System Settlement Funds from the 3M Company to the Metropolitan Department of Water and Sewerage Services.
The Metropolitan Department of Water and Sewerage Services (“MWS”) joined a class action lawsuit against 3M Company over contamination to U.S. public drinking water systems. Though MWS has detected trace amounts of Per- and polyfluoroalkyl substances (“PFAS”) in source water, MWS has never detected PFAS in finished drinking water.
3M agreed to settle water provider claims on a claims-wide basis. MWS is expected to receive payments in multiple phases. The initial payment of settlement funds, as described in an attached payment letter, is $777,394.70, minus MWS’s share of costs. This ordinance would accept a settlement amount of $644,832.60 and separately appropriate the funds to the Water and Sewer Revenue Fund.
According to the payment letter, additional payments are anticipated annually through 2033. The total anticipated value of the settlement with 3M is $3,886,973.89, minus MWS’ share of general costs. This ordinance would accept future payments and separately appropriate them to the Water and Sewer Revenue Fund.
Amendments to this ordinance shall be approved by resolution.
An amendment to this ordinance removed the authority to accept future settlement payments from DuPont and clarified that the future settlement payments from 3M are referenced in the attached Payment Letter.
Fiscal Note: The Metropolitan Department of Water and Sewerage Services (“MWS”) will receive a partial payment in 2025 in the amount of $644,832.60, the 3M July 25 Gross award of $777,394.70 minus client-specific costs from the 3M Phase One Action Fund, as part of the 3M Public Water System’s settlement. The total anticipated gross award value from the 3M Phase One Action Fund is $3,886,973.49. Subsequent payments from the 3M Phase One Action Fund will reflect the gross award value, minus the client’s share of general costs. MWS is expected to receive two payments in 2025 and one payment annually thereafter through 2033.