Supporting Document (bf822e41...)
Extracted text (via pymupdf_layout)
8099 characters
Item 18
CITY COUNCIl
( \
REPORT
Meeting Date: October 20, 2026
General Plan Element: Provide for the orderly administration of the affairs of the City
General Plan Goal: Fiscal Management
ACTION
Request: Adopt Resolution No. 13813 authorizing the City to participate in settlement
agreements with defendants Amerex Corporation, Archroma U.S., Inc., Carrier Global Corporation, and
Nation Ford Chemical Company with respect to water resources damages sustained by the City
from firefighting foam products fknown as "aqueous film forming foam" or "AFFF") and/or other
products containing perfluoroallq^l substances ("PFAS") (including perfluorooctanoic acid
("PFGA" Or "C8"), perfluorooctane sulfonate ("PFOS"), and any other related compounds).
Background
On May 16, 2023 the City Council adopted Resolution 12827 authorizing the City to retain the
law firms of Baron & Budd, P.C., Cossich, Sumich, Parsiola & Taylor LLC, and Law Office of Joseph
C. Tann, PLLC in order to pursue damages, compensation, and other relief against the
manufacturers Of AFFF and/Or other products containing PFAS, and any other related
compounds. Multiple lawsuits filed around the country have been consolidated in the United
States District Court in South Carolina.
The District Court of South Carolina has granted preliminary approval of class settlements with
defendants Amerex; Archroma U.S.; Carrier Global Corporation; and Nation Ford Chemical
Company. (In Re: Aqueous Film-Formirig Foams Product Liability Litigation, MDL 2:18-mn-2873-
RMG). The District Court further established a deadline of December 22, 2.026 for opting out of
the settlements. If the City does not opt out of the settlements, the City will remain a class
member. As a class member, the City will be required to file damage claims.
The total settlement amounts for each defendant Amerex—$4,000,000; Archroma U.S.—
$14,000,000; Carrier Global Corporation—at least $129,200,000 (with the possibility of
additional insurance money up to and capped at $85,000,000); and Nation Ford Chemical
Company—$1,875,000. The actual amount of monies received by the City is dependent upon the
number of public water systems throughout the United States that remain class members.
ANALYSIS & ASSESSMENT
Recent Staff Action
2010.4013.1 Action Taken.
City Council Report | Perfluoroalkyl Subrtances Settlement Agreement•
Staff from the Water Resources Division has sampled the Cit/s surface water and groundwater
to determine the extent of PFAS contamination. Staff frOm the City Attorne/s Office and Water
Resources Division have provided the PFAS sampling results along with the flow rate data for
each well and the CAP water Treatment Plant and the Chaparral Water Treatment Plant to the
Cit/s outside legal counsel in order for claims to be filed.
Policy Implications
None.
Significant Issues to be Addressed
None.
Community Involvement
No community involvement is necessary regarding this matter.
RESOURCE IMPACTS
Available funding
There is no funding requirement to participate in this matter.
Staffing, Workload Impact
The Water Resources Division has sufficient staff to prepare the necessary claims to receive
settlement payments.
Future Budget Implications
The total amount of recovery that the City will be able to collect cannot be calculated with
certainty as the amount is ultiniately contingent bn the level of participation in the settlements
by public water systems throughout the United States and the extent of those systems' PFAS
contamination relative to the City of Scottsdale.
Cost Recovery Options
None.
OPTIONS & STAFF RECOMMENDATION
Recommended Approach
Adopt Resolution No. 13813 authorizing the City to participate in settlements with Amerex
Corporation, Archroma U.S., Inc., Carrier Global Corporation, and Nation Ford Chemical Company in the
United States District Court of South Carolina, In Re: Aqueous Film-Forming Foams Product
Liability Litigation, MDL 2:18-mn-2873-RMG.
20104013.1 Page 2 of 3
City Council Report | Perfluoroalkyl Substances Settlement Agreement
Proposed Next Steps
The City Attorney's Office will work with the Water Resources Division to file all necessary
documents and claims.
RESPONSIBLE DEPARTMENT(S)
City Attorney's Office
Water Resources Division
STAFF CONTACTS (S)_______________________________________________________________
Luis E Santaella, City Attorney, LSantaella(5)ScottsdaleAZ.gov
Karen Tyler, Principal Assistant City Attorney, KTyler@ScottsdaleAZ.gov
Suzane Grendahl, Water Quality Director, sgrendahl@scottsdaleaz.gov
APPROVED BY
Oot U^'ln'7
Luis E Santaella, City Attorney Date
Karen Tyler, Principal Assistant City Attorney
(480] 312-2561
KTvler@ScottsdaleAZ.gov
ATTACHMENTS
1. Resolution No. 13813
20104013.1 Page 3 of 3
RESOLUTION NO. 13813
A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE,
MARICOPA COUNTY, ARIZONA, AUTHORIZING THE CITY’S PARTICIPATION
IN THE PROPOSED CLASS ACTION SETTLEMENTS WITH AMEREX
CORPORATION, ARCHROMA U.S., INC., CARRIER GLOBAL
CORPORATION, AND NATION FORD CHEMICAL COMPANY IN THE PUBLIC
WATER SYSTEMS’ PORTION OF THE MULTI-DISTRICT LITIGATION
MATTER, IN RE: AQUEOUS FILM-FORMING FOAMS PRODUCT LIABILITY
LITIGATION, MDL 2:18-MN-2873-RMG RELATED TO DAMAGES SUSTAINED
FROM PRODUCTS CONTAINING PERFLUOROALKYL SUBSTANCES
(“PFAS’).
WHEREAS, the City Council previously adopted Resolution 12827 authorizing the City
to pursue damages, compensation, and other relief against the manufacturers of firefighting
foam products (known as “aqueous film forming foam" or “AFFF”) and/or other products
containing perfluoroalkyl substances (“PFAS”), and any other related compounds; and
WHEREAS, on December 7, 2018, litigation involving the contamination of water and
soil by Per- and Polyfluoroalkyl Substances manufactured by Various entities was consolidated
in the United States District Court of South Carolina as In Re: Aqueous Film-Fonving Foams
Product Liability Litigation, MDL 2:18-mn-2873-RMG, before the Honorable Richard M. Gergel;
and
WHEREAS, settlements have been filed on behalf of manufacturers Amerex
Corporation, Archroma U.S., Inc., Carrier Global Corporation, and Nation Ford Chemical
Company to compensate public water systems for the contamination and remediation of PFAS;
WHEREAS, by remaining a class member, the City will be entitled to compensation
based on the amounts of PFAS contamination in the City’s water system;
WHEREAS, the City Council has determined that it is in the best interest of the City to
participate in the settlement agreements pending in the United States District Court in South
Carolina in order to receive a distribution of funds from these settlements.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Scottsdale,
Maricopa County, Arizona, as follows:
Section 1. The City Council hereby approves the City’s participation in the proposed
Class Action Settlements with Amerex Corporation, Archroma U.S., Inc., Carrier Global
Corporation, and Nation Ford Chemical Company in the Public Water Systems’ portion of the
multidistrict litigation matter. In Re: Aqueous Film-Forming Foams Product Liability Litigation,
MDL 2:18-mn-2873-RMG, relating to PFAS contamination of public drinking water (hereinafter,
the “MDL”).
Section 2. The City Council hereby authorizes and directs the City Attorney to file all
documentation required to participate in the settlements, including claim forms, with the District
Court.
19563222 Resolution No. 13813 r Attachment 1
Page 1 of 2
Section 3. That the City Manager, the City Treasurer, the City Attorney, and their
respective staffs are authorized and directed to execute any such documents and take any such
other actions reasonably necessary to carry out the purpose of this Resolution.
PASSED AND ADOPTED by the Council of the City of Scottsdale this __ day of
October, 2026.
CITY OF SCOTTSDALE, an Arizona
municipal corporation
ATTEST:
Ben Lane, City Clerk Lisa Bbrowsky, Mayor
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
Luis E Santaella, City Attorney
By: Karen Tyler, Principal Assistant City Attorney
19563222 Resolution No. 13813
Page 2 of 2