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ITEM: RESOLUTION NO. R2026-33 (FY26 UTILITY BUDGET AMENDMENT FOR PFAS PUBLIC WATER SYSTEM SETTLEMENT PAYMENTS)
A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL AMENDING THE FISCAL YEAR 2025-2026 UTILITY BUDGET FOR THE PFAS PUBLIC WATER SYSTEM SETTLEMENT PAYMENTS TO FUND MEMBRANE PLANT UPGRADE PROJECTS; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of Budget Amendment Resolution No. R2026-33 to assign $2,293,776.31 from PFAS settlement payments to the Utility Capital Budget for the purposes of funding membrane plant upgrade projects.
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EXPLANATION: In 2023, the Village of Wellington retained outside legal counsel to pursue claims for PFAS contamination, including in its groundwater and drinking water system, against the manufacturers of products containing PFAS compounds. Previously under Resolution No. R2025-59, the Village Council approved a Budget Amendment for 2 payouts from the 3M settlement, an initial payout of $1,463,529.80 and a 2nd payment of $2,984,376.05. Also, under Resolution No. R2025-72 the Village Council approved a budget amendment for a payment from the Dupont Settlement for $780,416.58.
This resolution is for a payment from 3 new settlements totaling $2,293,776.31 as noted below.
BASF Payout 1: $326,940.81
Tyco Payment 1: $786,022.58
3M Payment 3: $1,180,812.92
These payments represent approximately 95% of the Tyco and BASF settlement claims. Future payouts will be processed as future budget amendments as they are received. Payments received to date total $7,522,098.74.
This Budget Amendment proposes to add these funds to the Utility Capital budget for the funding of water plant capital projects related to membrane plant expansion and upgrades. The Utilities Department current capital plan proposes a phased plan for a full replacement of all lime softening treatment with nanofiltration membrane treatment. Nanofiltration membrane treatment technology is an EPA “best available technology” for the removal of PFAS compounds.
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