Title
Ordinance in the Amount of $1,248,555 Amending the Water Resources Capital Improvement Fund Budget for the Piedmont Triad Regional Water Authority Hydropower Lawsuit Settlement
Body
Department: Water Resources
Council District: All
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Steven Drew, 373-7893
Contact 2 and Phone: Rick Lusk, 373-2077
PURPOSE:
The Piedmont Triad Regional Water Authority settled its court case with owners of seven hydroelectric plants downstream from the Randleman Reservoir. The case was settled for $2.35 million and the City of Greensboro owes 53.13 percent of that total due to our ownership interest in water rights of the reservoir. That equates to $1,248,555 which has been budgeted as part of the Water Resources Capital Reserve funds. A budget amendment is needed to permit the expenditure of funds, and approval of the settlement payment is requested.
BACKGROUND:
The Board of the Piedmont Triad Regional Water Authority ("Authority") voted to approve a mediated settlement agreement entered into on April 1, 2014 in the long running case between the Authority and seven downstream hydroelectric facilities operating on the Deep River. The Authority chose to enter into this mediated settlement agreement to end the controversy and litigation over riparian rights in the flow of Deep River that dates back to the granting of certificates by the State of North Carolina to build the Randleman Reservoir. The settlement amount of $2,350,000 is substantially less than the amounts sought by the hydro facilities. It includes all fees and costs and disposes of future claims for additional losses from water used within the parameters of the Authority's permits for expansions of the water treatment plant up to 48 Million Gallons Per Day. The City of Greensboro owes 53.13 percent of that total due to our ownership interest in the water rights of the facility. That equates to $1,248,555 which has been budgeted as part of the Water Resources Capital Reserve funds.
BUDGET IMPACT:
This will increase the Water Resources Capital Improvement Fund by $1,248,555. This increase will be funded through Water Resources Capital Reserve funds.
RECOMMENDATION / ACTION REQUESTED:
Water Resources requests that City Council adopt the attached budget ordinance establishing funding in the amount of $1,248,555 for the Piedmont Triad Regional Water Authority hydropower lawsuit settlement, and approve the settlement payment.