The Modesto Irrigation District and City of Modesto have agreed to settle litigation over costs associated with the Modesto Regional Water Treatment Plant expansion project (Modesto Irrigation District v. City of Modesto, Stanislaus County Superior Court Case No. 2001607).
In September 2015, MID and the City put this litigation regarding funding for the plant expansion on hold and instead engaged in mutually beneficial negotiations to settle the litigation and discuss future water operations planning.
As a result of a series of extensive, amicable negotiations and discussions, each party will bear its own costs and attorney fees. This settlement permanently dismisses the lawsuit and results in an estimated savings of $2 million in litigation costs for MID and City customers.
Though there was disagreement regarding responsibility for funding some of the plant expansion costs, MID and the City worked together to ensure construction activities successfully continued and the project was completed in June 2016.
“This collaboration to resolve the construction litigation allows the City and MID to focus our efforts on efficiently providing essential water,” Mayor Ted Brandvold said.
The City and MID also share the goal of improving our longstanding relationship.
“Resolving this litigation means customers win. I’m happy we can now direct our full attention on working through and refining an agreement outlining our joint, future operations that will benefit all,” said MID Board President Larry Byrd.
The Modesto Regional Water Treatment Plant is owned and operated by MID. Completed in 1994, the first phase of the plant provides drinking water to the City of Modesto. It currently treats and delivers approximately 30 million gallons of water per day, which is roughly one-half of the City of Modesto’s water needs. The expansion, completed in 2016, is capable of providing up to twice the original capacity.