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BAWA Resolution No. 2024-01 RESOLUTION NO. 2024-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY AUTHORIZING THE GENERAL MANAGER TO NEGOTIATE AND EXECUTE A CONTINGENCY FEE AND RETAINER AGREEMENT WITH FRAZER LAW, PLC, AND VENTURA LAW TO PERFORM LEGAL SERVICES IN CONNECTION WITH POTENTIAL LITIGATION REGARDING THE PRESENCE OF POLYFLUOROALKYL SUBSTANCES (PFAS), INCLUDING, BUT NOT LIMITED TO, PFOA AND OR PFOS, IN DRINKING WATER, WASTEWATER AND SOIL IN THE BAYTOWN AREA WATER AUTHORITY'S PROPERTY; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, the Board of Directors of the Baytown Area Water Authority (the "Board") is pursuing a Contingency Fee and Retainer Agreement with Frazer Law, PLC, and Ventura Law to perform legal services in connection with potential litigation regarding the presence of Polyfluoroalkyl substances(PFAS)in drinking water, wastewater and soil in Baytown Area Water Authority(`BAWA") property. Should detectable levels of PFAS be present,based upon revised standards issued by the United States Environmental Protection Agency, BAWA hopes to recover damages from the manufacturers; and WHEREAS, the Frazer and Ventura law firms represent municipalities and water systems in PFAS litigation across the country and have developed a specialty and competence in such litigation.; and WHEREAS, the law firms are members of the Water Council for the US Conference of Mayors and, in this capacity, contacted BAWA in September 2023 regarding potential claims and recoveries from settlements with various manufacturers that were recently announced; and WHEREAS, BAWA has no previous relationship with either law firm; and WHEREAS, the General Counsel's Office of BAWA of Baytown has neither the capacity, expertise, nor current license requirements, to adequately represent BAWA in the current multi-district federal litigation; and W1IEREAS, lawsuits of this type are generally handled on a contingency basis by firms with expertise in the area; and WHEREAS, it is uncommon for law firms with such expertise to charge an hourly rate; and WHEREAS, an hourly rate for such complex and time-consuming litigation would not be economically feasible or in residents' best interests, especially considering the possibility of a loss or minor recovery; and WHEREAS, entering into a contingency fee arrangement with law firms with expertise in this area of the law and the capacity to handle large,complex cases on a nationwide basis at no cost to BAWA (unless BAWA recovers) is the most advantageous, expeditious, and economical way to protect BAWA's rights; and WHEREAS, before the Contingency Fee and Retainer Agreement is effective and enforceable, BAWA must receive approval from the Texas Attorney General in accordance with Section 2254.1038 of the Texas Government Code; NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY: Section 1: That the Board finds that: a. there is a substantial need for the legal services; b. the legal services cannot be adequately perfonned by the attorneys and supporting personnel of BAWA; and C. the legal services cannot reasonably be obtained from attorneys in private practice under a contract providing only for the payment of hourly fees, without regard to the outcome of the matter, because of the nature of the matter for which the services will be obtained or because BAWA does not have fiords to pay the estimated amounts required under a contract providing only for the payment of hourly fees. Section 2: That the Board hereby authorizes the General Manager to negotiate and execute a Contingency Fee and Retainer Agreement with Frazer Law, PLC, and Ventura Law to perform legal services in connection with potential litigation regarding the presence of Polyfluoroalkyl substances (PFAS), including, but not limited to, PFOA and/or PFOS, in drinking water, wastewater and soil in Baytown,Texas. Such agreement shall be under terms and conditions acceptable to the General Manager and General Counsel. Section 3: That the General Manager and/or General Counsel shall, in accordance with Section 2254.1038 of the Texas Government Code seek approval from the Texas Attorney General for the Contingency Fee and Retainer Agreement with Frazer Law, PLC, and Ventura Law. Section 4: This resolution shall take effect immediately from and after its passage by the Board of Directors of the Baytown Area Water Authority. 2 INTRODUCED, READ and PASSED by the affirmative vote of the Board of Directors of the Baytown Area Water Authority this the 17t1i day of January, 2024. Z'��� �!- __� /RENDA BRADLEY SPTH.!Pr4esi dent ATTEST: .�` p,TERq'���,� .N¢� 4 ' ANGEL ACKSON, A y APPROVED ` S TO FORMr��'''�111*��``, SCO OND, General Counsel R:,Scott`,BAWA 2024-01-17 Conti ngencyFee&RetainerAgreement-PFASLawsuit.docx 3