ADMINISTRATIVE REPORT
MEETING DATE: March 25, 2026 AGENDA CATEGORY: CONSENT - Miscellaneous TO: Honorable Mayor and City Council
FROM: Kris Budak, Water Director
DATE: March 11, 2026
SUBJECT: Appropriate $3,737,446 of Litigation Revenue to Domestic Water Fund Capital Improvement Budget
RECOMMENDATION:
Staff recommends approval of this appropriation
BACKGROUND:
On June 5, 2023, the City joined Multi-District Litigation No. 2873 (“MDL 2873”) against 3M, DuPont, and other PFAS/PFOA manufacturers to recover damages associated with PFAS/PFOA contamination of the City’s water supply.
In 2024, the City reached a settlement in MDL 287 3 that provides for the recovery of capital costs associated with installing treatment vessels at nine (9) City wells. To date, the City has received $4,537,446 in settlement funds, with additional payments anticipated.
On November 19, 2025, $800,000 of the settlement proceeds were appropriated to the Domestic Water Fund Capital Improvement Budget. At this time, staff is requesting that the remaining $3,737,446 be appropriated to the Domestic Water Fund Capital Improvement Budget to support the continued implementation of necessary water treatment infrastructure improvements.
FISCAL IMPACT:
There is no fiscal impact to the general fund.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS: