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File #: 18-1062    Version: 1 Name: 6/18/18 Bodman Am #3 for Gelman lawsuit
Type: Resolution Status: Passed
File created: 6/18/2018 In control: City Council
On agenda: 6/18/2018 Final action: 6/18/2018
Enactment date: 6/18/2018 Enactment #: R-18-255
Title: Resolution to Approve Third Amendment to Professional Services Agreement with Bodman, PLC, for Legal Services Relative to 1,4-Dioxane from Gelman Sciences, Inc., dba Pall Life Sciences ($150,000.00) and to Appropriate Funds ($150,000.00) (8 Votes Required)
Sponsors: Christopher Taylor
Attachments: 1. Bodman PLC Gelman Am No. 3.pdf
Title
Resolution to Approve Third Amendment to Professional Services Agreement with Bodman, PLC, for Legal Services Relative to 1,4-Dioxane from Gelman Sciences, Inc., dba Pall Life Sciences ($150,000.00) and to Appropriate Funds ($150,000.00) (8 Votes Required)
Memorandum
The City has previously litigated against Gelman Sciences, Inc., dba Pall Life Sciences (Gelman) relative to the 1,4-dioxane that Gelman released at its property in Scio Township that has migrated as one or more plumes, via aquifers, both under properties within the City of Ann Arbor and under properties in Scio Township. Although the City entered into a settlement with Gelman in late 2006, the City did not release all future claims and reserved its right to bring those claims if they arose.

Since 1988 the State of Michigan, through the Attorney General, the Department of Environmental Quality (MDEQ), and other state agencies (collectively the State), has been in litigation with Gelman relative to the 1,4-dioxane plume. In 1992 the State and Gelman entered into a consent judgment in an effort to resolve their litigation. The consent judgment has been amended three times, in 1996, 1999, and 2011.

On October 27, 2016, the Michigan Department of Environmental Quality (MDEQ) promulgated, and Governor Snyder approved, an emergency cleanup criterion of 7.2 ppb for 1,4-dioxane, replacing the 85 ppb criterion that was previously in effect.

Under the circumstances, the State has been in negotiations with Gelman regarding possible revision of the consent judgment. In December 2016 the City, various Washtenaw County parties, and the Huron River Watershed Council moved and were granted permission to intervene in the case between the State and Gelman. In February, Scio Township also was granted permission to intervene. Although the intervening parties can pursue litigation as parties to the case, the City and other intervenors have become involved in the negotiations in an effort to reach agreement on...

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