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Hawthorne attorney says PFAS settlements, NJIB financing could fund treatment; borough reports pump-station damage after water break
Summary
Borough attorneys said allocations from DuPont and 3M settlements may start arriving in coming weeks; borough also reported a Gopple Hill pump-station break that damaged electrical components and is expected to be covered by insurance.
Hawthorne—s municipal attorney and administrators gave the council an update on PFAS litigation, settlement timing and the borough—s water-system work at the Jan. 22 meeting.
Attorney Michael Pasquale told the council the DuPont and 3M settlements are moving through claims-administration and that the borough—s submitted claim allocation should be announced "within the next several weeks," followed by a brief review and comment period. Pasquale said the borough could receive a first payment as early as the end of the first quarter and that claims against other companies (Tyco and BASF) remain in progress.
Administrator Eric Maurer reported a water break at the Gopple Hill pump station that flooded electrical components. The well and PFAS treatment at that well have been returned to service, Maurer said, and the borough believes insurance should cover most or all of the repair costs. He described substantial damage to electrical systems and said public works, police and engineers responded quickly.
Maurer also said the borough is participating in New Jersey Infrastructure Bank (NJIB) financing for PFAS systems; the NJIB expects to sell bonds in May and the borough plans to borrow through that program. He said the borough expects to use PFAS-settlement funds to "buy down" the amount borrowed, citing an expected first tranche roughly equivalent to $1,000,000 that would reduce principal and debt service, with a similar amount reserved to help pay debt service over the loan term.
Why it matters: Municipal PFAS treatment and related capital projects carry long-term costs. The combination of settlement receipts and NJIB financing would reduce the borough—s borrowing need and lower debt service if settlement payments are awarded as described.
Other notes: Pasquale said oral argument on the Nexus Plastics matter was heard last week and a decision from that appeal was expected within about two weeks. The council did not vote on settlement acceptance or bond approvals at the Jan. 22 meeting; the discussion provided timing and financing context.
