FROM STAFF REPORTS

The Statesville City Council agreed on Monday to settle a federal lawsuit with Iredell Water Corporation, which accused the city of illegally encroaching on the water provider’s federally protected service area for decades.

Under the terms of the settlement approved by council members, the City of Statesville will pay Iredell Water Corporation $1.475 million. The agreement also establishes territorial boundaries for both the city and Iredell Water.

Under the terms of a 99-year service agreement, which is part of the settlement, Iredell Water also agreed to purchase a minimum of 6 million gallons of water per year from the city at a discounted rate. The city agreed to reserve up to 24.8 million gallons of water per month for Iredell Water.

In the federal lawsuit, Iredell Water sought a minimum of $10 million in damages from the city and also asked the court to order that any city water lines and associated infrastructure in Iredell Water’s territory be conveyed to the utility.

City council members did not discuss the settlement during Monday’s regular meeting. It was approved along with routine matters on the consent agenda — and the settlement amount was not discussed publicly during the regular meeting.

City Attorney Leah Messick disclosed the settlement amount during the pre-agenda meeting.

City Manager Ron Smith said that the settlement was beneficial to both sides because it creates a clear boundary line for Iredell Water’s service area within the city limits, preventing future disagreements over who would provide water to new developments.

“It got to the point where if we want to survive as a city, we’ve got to do this,” Smith said in an interview.

Existing customers for the city and Iredell Water will not see a change in their service.

The city manager said the $1.475 million would be paid from the city’s water and sewer fund balance.

IN OTHER BUSINESS

♦ City Manager Ron Smith announced the upcoming retirement of Fire Chief Andy Weatherman.

Weatherman, he said, has done a commendable job during his three-year tenure as chief after rising through the ranks from firefighter to lieutenant, captain, battalion chief and deputy chief.

The chief worked to address department morale, advocated for equitable pay for SFD personnel and apparatus replacement, and played a leadership role in planning for the new Fire Station 1, which is currently under construction.

“I want to commend him,” Smith said. “I want to thank him.”

♦ Councilwoman Kim Wasson presented awards to Angela “Blake” Blakley in recognition of her 30 years of service to the community through the YMCA of Northwest North Carolina and to the Statesville High School women’s track and field team for their recent achievements at the NCHSAA state championship.

♦ The Council awarded a $19.03 million contract to Wharton-Smith Inc. for construction of phases 1 and 2 of the Warehouse/Operations Center. The Charlotte contractor submitted the low bid. G.L. Wilson Co. of Statesville submitted a bid of $19.23 million.

♦ The Council authorized staff to apply for a federal grant to fund a study for a pedestrian crossing for Garner Bagnal Boulevard at Shelton Avenue. The purpose of the study is to identify options for improving pedestrian safety at this intersection. The estimated cost of the study is $150,000. If the grant is awarded, it would require a $30,000 match by the city.

♦ The Council voted to reject a $650,000 offer from Jai Amba Maa (JAM) Hospitality to purchase property at 1203 and 1213 Free Nancy Avenue. Councilman C.O. Johnson opposed selling the property without having a professional property appraisal. The prospective buyer submitted the offer, which was then advertised and published online for 10 days and subjected to the upset bid process. The property, which was donated to the city, is being leased through 2024 and used a work site for the Interstate 77/Interstate 40 project.