R-13-07 RESOLUTION NO. R-13-07
A RESOLUTION APPROVING THE TERMS CONDITIONS
OF FAIRF XED
SETTLEMENT WITH FAIRFAX WATER AND THE COUNTY
UNDER WHICH CITY WATER CUSTOMERS WILL BECOME RETAILI1
CUSTOMERS OF FAIRFAX WATER
WHEREAS, the City and various other Northern fax County proposing to regu ate
Virginia
challenges to action by the Board of Supervisors of Fairfax
charged by the City to City water customers located in the County of Fairfax; and,,
have entered into negotiated
the other jurisdictions hav d settlements re arding and the City entered
their pending litigation with the County of Fairfax and Fairfax Water and
court-led mediation in an attempt to negotiate the possible terms for an agreement
into federal cou
to resolve its litigation; and
WHEREAS, the City, Fairfax Water and the County of Fairfax negotiated tle terms
of a mediated settlement under which all current City water customers would become retail
customers of Fairfax Water; and
City WHEREAS, the Mayor
and Cit Council believe that it is in the City's best hort and
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long term interest, and the interest of the City's entire d for all current Cy y watero upst rmers ho
terms and conditions of this mediated settlement and
retail customers of Fairfax Water; and
ic
WHEREAS, the Mayor and City Council have public hearings a d pub
carefully c ns derled
outreach on the proposal and the issues associated therewith,
the merits of the proposal.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Fairfax, that the terms and conditions of the mediated�settlement enclude, but are Water and
County of Fairfax be, and hereby are, approved, which
following:
r. The
1. City water customers shall become retail a net capacity ac�ty buy-if
n to Fairf x eWater's
City will pay the sum of $20 million as P
ugh a seven year not , with system. The City will pay that obligation �° it interest.five i There
years being interest free and the last t y ears at three percent n
shall be no pre-payment penalty. The note will have a b Moos mend at the end
of its term at which time the principal portion of the note
• 2. Fairfax Water will establish rate uniformity between the City's cuing under
customers and those of Fairfax Water within three years
CitYs
the final agreement. There will be immediate rate un oifrmityg etween th outtids
existing customers within its boundaries and Y
its boundaries.
3. Fairfax Water will offer employment d and all
guarantee yemploymentafor three years
system employees being displaced
following the date of such employment terminable only for cause, and With to less
compensation than the employees currently earn; provided ith that, with regard to t to
Goose Creek treatment plant employees, Fairfax
those employees only if Goose Creek ceases production, but not lat r than three
years following closing under the final agreement. The City will ens re that such
employees' pension and benefit obligations are brought current.
4. Fairfax Water will acquire all pipe, storage facilities and appurtenances iecl ithi the
City and in the County needed to operate the water system,
transmission mains within Fairfax County. The Goose Creek retain
Goose
Loudoun County (including but not limited to the
Creek and Beaverdam Reservoirs, dams and all related land).
5. The City will retain all debt associated with the water system, unless immediate
upgrade improvements are needed and agreed to by Fairfax Water.
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6. The City, County and Fairfax Water will seek dismissal of pending lit gation
regarding this matter upon approval by the City, County and Fairfax Wat r of a
final agreement between the parties. Fairfax County will not enforce ' s rate
regulation ordinance pending approval of a final agreement by all partii s and
closing under that agreement.
BE IT FURTHER RESOLVED by the City Council of the City of a the County
Fairfax,
staff be, and hereby is, directed to enter into negotiations with Fairfax
of Fairfax to finalize an agreement which would implement th the terms of this is reso ut of sa d
the terms and conditions of the mediated settlement, subject
agreement by all parties involved.
ADOPTED this 9th day of April, 2013.
.72c7cf___irril---.:Vat.f___‘, /
Mayor
ATTEST:
/ At ,/
, - /1
City Clerk
The vote on the motion to approve was recorded as follows:
VOTE:
Councilman DeMarco Aye
Councilman Drummond Aye
Councilman Greenfield Aye
Councilman Meyer Aye
Councilmember Schmidt Aye
Councilman Stombres Aye
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