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Home My WebLink About _ 4.11(b)--AFFF Products Liability Litigation Settlement GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: August 4, 2026 FROM: Michael Webb, Interim City ITEM NO. 4.ll(b) Manager/Public Works Director ***APPROVED BY*** mwebb@cityofredding.org i��hawt �•� ,� �� r4y ��a�ca�,`L�ul�lic��'u�kh Ilicectc�r 71�it2€1�f� mwebb@cityofredding.org SUBJECT: 4.11(b)--AFFF Products Liability Litigation - Public Water Systems Class Action Settlement Recommendation Authorize and approve the following for the City of Redding Water Utility: (1) Accept payment from the Aqueous Film-Forming Foam Products Liability Litigation Class Action Settlement for Public Water Systems; and (2) Find that payment acceptance is exempt from environmental review under the California Environmental Quality Act, pursuant to section 15061(b)(3) — Common Sense Exemption. Fiscal Impact The City of Redding (City) would receive funds in the amount of$2,448,181.78 paid out over a term of several years through 2033 as part of the Phase 1 settlement litigation. Exact timing of funds is unknown at this time. There is no impact to the general fund. Alter�native Action The City Council (Council) may choose not to accept the settlement funds and provide alternative direction to staff. Background/Analysis Over the last several years, Public Water Systems have pursued litigation against the manufacturers of Aqueous Fi1m Forming Foam (AFFF) products, including 3M, DuPont, Tyco, and BASF. AFFF contains per- and polyfluoroalkyl substances (PFAS). These "forever chemicals" pose environmental and health risks due to their chemical stability, widespread use, and bio accumulative properties. PFAS enter the environment through industrial processes, consumer products, and firefighting foams (particularly at airports), r�sulting in contamination of rivers, groundwater, and drinking water. Report to Redding City Council July 31, 2026 Re: 4.11(b)--AFFF Proa'ucts Liability Litigation Settlement Page 2 The manufacturers named in the litigation are alleged to have misrepresented the risks associated with AFFF products containing PFAS. Their use has contributed to increased PFAS contamination in Public Water Systems' drinking water, creating harmful impacts for state and local jurisdictions. The resulting multi-district litigation (MDL No. 2873) is overseen by the United States District Court for the District of South Carolina, with Judge Richard M. Gergel presiding. The current settlement agreements are class-action settlements intended to resolve claims related to PFAS contamination in Public Water Systems' drinking water. All four settlement agreements have received final approval from the court. These settlements are now being implemented on a nationwide basis. Several billion dollars have been offered and will be distributed among eligible Public Water Systems across the country. Two separate settlement agreements make up the overall resolution: one with 3M and DuPont, and another with Tyco and BASF. Although the agreements differ in total settlement amounts and the tiine periods they cover, they are otherwise similar. All documents and information related to this MDL are available for public review at ht.t��e1/�rww,��sw�t�rs�ttl�,x��t.��1. The City of Redding Water Utility began testing for PFAS in its drinking water in 2013 as part of the Environmental Protection Agency's (EPA) Unregulated Contaminant Monitoring Rule testing requirements. The UCMR testing satisfied the AFFF litigation testing and data requirements, therefore no additional testing or costs were incurred for the City to be included in the litigation. Three of the City's Enterprise Wells have tested positive for PFAS historically. The City entered into the class action lawsuit in 2023, providing years of water testing data. The amount of the settlement payout depends on the amount and cost of PFAS sampling and testing, contamination levels, and treatment and/or remediation which is calculated by the AFFF settlement claims administrator. The amount scheduled to be awarded to the City of Redding from each defendant for Phase 1 is listed below: • 3M $ 1,961,945.61; • Dupont $ 203,264.64; � Tyco $ 199,848.64; and � BASF $ 83,122.89. The payouts will be paid in phased disbursements through 2033. Phase 2 of the settlement litigation will be forthcoming and additional funds may be paid. These funds have yet to be identified for any specific allocation. It is anticipated that the funds will be used for future Water Utility capital projects associated with groundwater and or PFAS removaUmitigation. By accepting these funds, it will release any fut�ure liability and or litigation against the four companies from the Water Utility. Howev�r, other City Departments and or Divisions that may have been impacted by PRAS contamination could still be eligible for future litigation and or settlements. These include, but may not be limited to, the Airports, Wastewater Utility, and Solid Waste Divisions. Report to Redding City Council July 31, 2026 Re: 4.11(b)--AFFF Proa'ucts Liability Litigation Settlement Page 3 Envi�onmental Review Staff has reviewed the activity and determined that it is exempt from environmental review under the California Environmental Quality Act (CEQA), pursuant to section 15061(b)(3) — Common Sense Exemption. CEQA applies only to actions which have the potential for causing a significant effect on the environment. It can be seen with certainty that there is no possibility that the actions may have a significant effect on the environment; therefore, the activity is not subject to CEQA. Council Priority/City Manager Goals • Public Safety — "Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." Attachments AFFF Payment Schedule Notice of Exemption - AFFF Products Liability Settlement �� r �r 2iC �4 `�1 �fiCt s � .' i �:�4a��I„ �r�. 1� ¢�.. �P['� �t U tt a'�� . �`t"4�c s1 � .Sti= P�� ., �) .. a�td,�L,,.C„1-..,,':.� ��,ti3{a,.lat.i ,,,,,;1 t }a,.�.,., �.kl��.w .n�.zx .� ra �'"�,.4,1ak,r S��,S,t�F,��" �t.r�2,w47,. e.�ni..�f�?.�,,.a..� �-�il4;�S• a..�3 �M. ,�„§l„7 3"{i,�.t€.� , s,t,t..a S..a.. ,..a`P,Y�€ I�;7} ,r.a�.t �..t,{e..ss`, �" bi.,. ( ,..i.,s f,.�,'6., t� ,�t ,z4^ „I. ,. ,. ... .... ��—..., ,<.. �� _ t� �� l ? TYCO AND BASF � �� 3M AND DUPONT PHASE 2 � ' ��.� u„�,��,�,��,�,��,b� �riN,��,�,��„A�� , �,��n�� ,� ��.�.,�� n..�� D'� Claim ID:OOQ052 PWS Name:City of Redding Assaciated Entity: ' PWS ID(SDWIS):CA4510005 Law Firm: N/A �ast updated:04/14/2026 5:14 AM by Surya Bahera �� .��,�.�, �,�� ,�n�,�ti ��n��,�� ,�.��,� m,m,m,�m ,mr,r.�ti ro��,�„� ro�,��,�,��,��., ��,��n� �� ', A.w�;:w�s.w�.m�.wxp p.µ�s. Payment H;Story ; � Description 3M Phase 1 DuPont Phase 1 Tyco �� BASF `�� ' PWS Total ABS Points(all Water ;� i 17,675,185.69941 , 17,675,185.69441 , 17,685,720.25503 ' 17,685,720.25503 Sources) i' � Projected Net Dollars per ABS Point , `� ; Value* 80.1110000000 $0.0115000000 , $@.0113000�00 $@.0647@000�0 ?' � _ _ � Anticipated Total Net Settlement F' $1,961,945.61 $203,264.64 $199,848.64 $83,122 89 r Payment Amount ', ', ', �' � � , �� Very Small and Inactive Water System $e.ea , �e.ee �a.ee �� e ee f�� Payment Amount , ' � Payments in Progress ' $0.�0 ' $a.0� ', $0.00 $� 00 � € 3 Actual$Paid ', 50.�0 ', $e,0e ', $0.00 �0.00 ` � , �, 1 Total Payments �� $0.00 �� $6.00 '�, $0.00 �� $0.00 ; i ' ' j Remaining&alance ', $1,961,945.61 ', $203,264.64 ', $199,84&.64 $83,122 89 ;' � t _ � � Remaining Balanee�per ABS Point , �� $0.11100�@000 $6.011500�000 $0.0113000�00 $0.00470000�0 Value �; Sh��f�etails , Water , Dollars ` ; Rayment Fund Batch Payment Payment (�� Source Amount Points Per ID Name Name Name pate Method Foint No data availabie , ' ; �' „ Items per page: 10 '� 0-0 of 0 '� � � �� ; ; �� , i�� ♦ �02023 EisnerAmper Gulf Coast Cl►TICE OF EXEMPTIOl�t To: � Office of Planning and Research FROM: �ity af Redding 1400 Tenth Street,Room 121 Public Works Department Sacramento; CA 958I4 777 Cypress Avenue Redding,CA 96001 � Shasta County Clerk County of Sl�asta P.CJ, Box 990880, 1643 Market Street Redding,CA 9�099-0880 Project Title. Agueous Fil�n-Forrnin�Ft�arn(AFFFI Froduct Liabilii�u Settlement Project La�ation—Specific. City c�f Reddin� Project Location—Ci�y. Reddin�Project Locat'ron—Coanty: Shasta Description of Project: The Citv af Redding will accept funds from the AFFF Fradiict Liability_Liti ation Class Actian Settlement for Public Water Systems.The Citv will receive$2 44$l 81.78 which will be distributed in incremental payments throu�h December 2033: Narne of Public Agency Appraving Project: City of Redding Narne af Ferson ar Agency Carrying Qut Project: Brandon Bishop, Water Conservation Specialist Exernpt Status; (check one) Cl Ivlinisterial [Sectic�n 2L08d(b)(1); 15268] ❑ Declared Emergency [Section 210�0(b)(3); 15269{a)] � Etnergeiicy Project[Sectio��2i080(b)(4); 15269(b)] C� Statutory Exemptioils. State code nurnber: � Cotnmon SenSe Exemptlon(This project daes not fall within an exempt class,but it can be seen with certainty thaY there is na possibility thatChe activity may have a sig�ificant effect on the environment(14 C�R 150bI[b][3]). � Categari�al Exemption: State iype and section number: ❑ Na exceptions apply that would bar the use of a categc�rical exemption{PRD 21084 and 14 CCR 153Q0.2). Reasons why projeet is�xempt: CEf�A applies anly to actions which have the potential for causin�a signifcant effect on the en�iror7rnent. The aetion has been reviewed and it can be seen with certalnty that there is no pc�ssibilitv that the acti�n may have a significant effect on the environment:therefore.the activity is not stibject tc�CEQA, Lead Agency Contact Persanw Amber Keltev Telephone:;530.225.4046 If Filed by Applicant: l. Attach certified docurnent of exemptian finding: 2. Has a notice t�f exemption been f�led by the public agency approving tlie pi-aject? o Yes o No Signature: �� ,,� _ c�t�� Date: t� ,.�`�� 'Title: Environrnental Compliance na�er �Signed by Lead Ageney Date received for filing at(7PR: ❑ Signed by Applicant C'Et�.��i�(C7� t�ja t��`�?�?'