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City approves 20-year water deal with Hendersonville
Wednesday, 17 January 2007 07:26
By DAVID FORBES

Asheville will soon sell water to Hendersonville, following Asheville City Councilës 5-1 approval of a deal between the two cities on Jan. 9.

Hendersonville City Council will take up the matter early next month at its regular meeting.


The 20-year deal, which will net the city $40,000-95,000 annually, is being touted by its proponents as proof that Asheville can create and maintain regional partnerships.


"This was an opportunity, with their needs and our capacity to provide," Mayor Terry Bellamy said. "More importantly, itës about continuing to build good relationships."

She added that the deal would not have been possible before Asheville gained control of its  water system after the dissolution of the regional water authority in the summer of 2005.

This agreement, she noted, just concerns the sale of water.


"Thereës no park, no civic center, no authority, no land," Bellamy said. "This is just straight selling water. Nothing requiring us to have an agreement beyond that."


Asheville still lacks the ability, which most municipalities in the state have, to set different water rates for customers inside and outside the city, due to laws passed by the General Assembly that specifically target Asheville. The city is currently challenging those laws in court.


The dissenting vote came from Councilman Carl Mumpower, who congratulated Bellamy on the deal, but said he felt it was premature.


"I donët think we should be entering into agreements on anything like this until weëve resolved our legal issues," Mumpower said. "Weëre locking ourselves in when we donët have understanding of how this is all going to play out. Thatës definitely a concern."


In response, Bellamy asserted that the deal is an opportunity that Asheville should pursue, even before the legal issues surrounding the water system are resolved.


"This is an opportunity for us to recoup some of what weëre losing and put it back into the infrastructure improvements that need to happen," she said. "Regional cooperation is not something weëve had for awhile. This is true cooperation. I think that, long-term, itës not only to the benefit of Hendersonville, but our rate-payers as well. This council is working hard to overcome any negative ideas about the city that are out there and show that weëre willing to work with others. Weëre going gangbusters on this now and weëre dealing with the laws that restrict us and weëre still moving forward. To me, itës like ǃÚIs that the best youëve got?ë"


In reply, Mumpower said that the city was ceding a possible bargaining chip by completing the transaction at this time.


"We should go to Hendersonville and say, ǃÚLook, after our legislators are not breathing down our necks anymore, weëd be happy to do this,ë but we need to get our legal issues resolved first," he noted.


Under the terms of the deal, Asheville would sell water to Hendersonville at 81 cents per 100 cubic feet, the same rate it sells water to Biltmore Forest, Woodfin and Black Mountain. The deal also includes an adjustable annual fee to help with the cost of upgrades. Either city may terminate the deal by giving 180 days notice.


Meanwhile, Councilwoman Robin Cape noted that she would prefer a deal "that saw us working together longer, without being able to just call it off for any reason as long as we give six months notice," but that she was generally in favor of the agreement.


City Manager Gary Jackson touted the deal as "win-win agreement. Hendersonville is in need of water and we have water to give."


Later, Councilman Brownie Newman also referred to the deal as "great and generally a very good thing."

In other action related to the water system, the city adopted 5-1 a plan to begin exploring the possibility of using bonds to finance needed improvements on the water system. The plan had been previously discussed in a work session in October.

Mumpower also cast the dissenting vote on that plan, citing similar concerns to his objection to the water deal with Hendersonville.


Councilman Bryan Freeborn was absent from the meeting.

 



 


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