2015.02.10 CC Packet Combined - Laserfiche WebLink

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January 27, 2015 Page 4 of 7 Consideration and A royal of a Su lemental Liti ation A Bement between 1 1. Consideration and pp pp g & the City of New Brighton and United States Army and the Unites States Department of Justice. City Manager Lotter provided the Council a history of the litigation process that has been underway for a number of years between the City and the United States Army and the Unites States Department of Justice. He explained that in July of 1981, the Minnesota Department of Health notified New Brighton that the groundwater it was extracting from wells in the Prairie du Chien/Jordan aquifer was poisoned by TCE, a known carcinogen, and by other harmful solvents. The City immediately took steps to avert a major health crisis by securing an altemative water supply for its residents (albeit a limited supply). The Army and the federal govemment offered no assistance to the City in that effort. Instead, they denied responsibility for poisoning New Brighton's water. City Manager Lotter commented that after receiving no assistance from the Army or the federal government, the City was forced to commence a lawsuit in 1984. The lawsuit sought to recover the City's costs and to secure additional safe drinking water supplies. The Army and the federal government responded to the lawsuit by again refusing to offer any federal assistance, and by again denying all responsibility. The answer to the City's lawsuit alleged that the Army and United States "owed no duty' to the residents of New Brighton to not pollute their drinking water, that the Army and United States were "not negligent", and that the pollution was cause by someone else. That, however, was all untrue. City Manager Lotter provided further history on the case and reported that in May of 2014, the City filed an enforcement action in Federal Court. The purpose of this action was to ask a Federal Court to compel the U.S. Army to live up to the promises they had made when it settled the litigation from the late 1980's. Ultimately, the parties entered into mediated sessions during the latter part of 2014 with Federal Judge, Janie Mayeron. The result of the mediated sessions is a supplemental settlement agreement before the Council for consideration. The Supplemental Litigation Agreement essentially preserves the relationship between the City and the U.S. Army that the City fought for more than 25 years ago. The City will retain its autonomy over its water supply and system, will continue to comply with Minnesota State regulations, and will receive advanced funding. City Manager Lotter thanked the team of staff, consultants and attorneys that assisted with the litigation. He introduced the members of Team Litsagia to the Council. He proudly announced that the City's water treatment system would be renamed the Drawz Kiel Water Treatment System. A round of applause was offered by all in attendance. John Drawz, Fredrickson and Byron, commended the efforts of Greg Kiel from Barr Engineering for the important work he completed on the design of the City's water system. Rick Snyder, Fredrickson and Byron, was pleased with the results that were achieved for the City. Tim O'Shea, Fredrickson and Byron, stated it was an honor to work with the City on this case and he appreciated the Council's support. Greg Kiel, Barr Engineering, appreciated the City's confidence on this matter. Lotter was pleased to report that the City would not be responsible for any of the litigation expenses, as these would be assumed by the Federal Government. He commended Judge Ann D. Montgomery for her efforts and recommended the Council approve the Supplemental Litigation Settlement Agreement, Release and Stipulation for Entry of Order for Supplemental Judgment. Motion by Councilmember Jacobsen, seconded by Councilmember Burg to approve the Supplemental Litigation Settlement Agreement, Release and Stipulation for Entry of Order for Supplemental Judgment. Approval of a Supplemental Litigation Agreement between the City of New Brighton and United States Army and the Unites States Department of Justice.