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V. REPORTS FROM COMMISSION AND STAFF - NONE 1 2 VI. GENERAL BUSINESS OF COUNCIL 3 4 A. Resolution 16-066 a Resolution Ratifying First Amendment to Litigation Settlement 5 Agreement and Pierringer Release by and Between the City of St. Anthony and the 6 United States of America. 7 8 City Manager Mark Casey reviewed this is a Resolution to adopt a First Amendment to the 1989 9 Settlement Agreement between the City and the Army related to the Twin Cities Army 10 Ammunition Plant (“TCAAP”), and authorizing the Mayor to execute the First Amendment on 11 behalf of the City. The City and Army have been negotiating potential resolution of claims since 12 the contaminant 1, 4 Dioxane was discovered in the Jordan and Prairie du Chien aquifers in the 13 spring of 2015. City Staff and the Army have reached an agreement on further payments by the 14 Army to fund additional treatment of groundwater. The TCAAP agreement funded construction 15 of the City’s existing carbon filtration system, which treats tetrachloroethylene (TCE) originating 16 from TCAAP. Carbon filtration cannot treat 1,4 Dioxane. Testing has been done and no tap 17 water within the City has exceeded the allowable limits. 18 19 City Manager Casey stated the TCAAP Agreement reserved the City’s rights to bring additional 20 claims to new capital projects (but not operating expenses) necessary to treat contaminants not 21 discovered as of the 1989 settlement. All parties agree that 1,4 Dioxane is a newly-discovered 22 contaminant, and the City and Army have been negotiating potential resolutions since the 23 discovery. The First Amendment will provide $10,565,317 to the City in a lump sum payment. 24 The payment reflects the following components: 25 • 100% of the presently-estimated capital costs of the ultraviolet-oxidation treatment 26 system described to the City in the December 2015 Feasibility Study; 27 • A 20% contingency on the estimated capital costs to reflect future expense uncertainties 28 in construction the treatment system; 29 • 100% of the City’s staff, administrative, engineering, testing and legal costs incurred 30 through June 2016; 31 • 100% of the costs of installing variable pumps to efficiently blend groundwater until the 32 new treatment system comes on-line; and 33 • Costs associated with lost water revenues arising from the irrigation ban and interim lost 34 use of the City splash decks. 35 36 City Manager Casey explained that in exchange for the settlement payment, the City will release 37 the Army from all claims related to 1,4 Dioxane that comes from TCAAP. The City reserves all 38 its rights regarding other possible contaminants and for 1,4 Dioxane from other possible sources. 39 40 Motion by Councilmember Stille, seconded by Councilmember Gray, to approve Resolution 16-41 066; a Resolution authorizing the Mayor of St. Anthony Village to execute an Amended 42 Settlement Agreement with the United States Army to Resolve Claims for 1,4 Dioxane Dioxane 43 Contamination Emanating from the Twin Cities Army Ammunition Plant. 44 45 4