OPINION: We STILL Need Town Hall Meeting on Water War

Not to sound like a broken record, but we still need a Town Hall meeting on the water litigation with the Fairfax County Water Authority (FCWA).  I said this a few weeks ago in an opinion piece here, repeating a suggestion which had been made by a number of people around town.

In my view, it is time for City officials to hold a Town Hall meeting on the matter to let the public ask questions.  What is the history of this matter?  Why did we sue Fairfax County Water Authority in Federal court?  Why did FCWA then sue us in state court?  Why have we counterclaimed?  How much money is at issue?  What is being done to resolve the issue out of court?

We understand that there are questions the City will not be able to answer due to ongoing litigation, but there are many that can be answered, like those above.

Since then, as shown in the excellent reporting of our colleague George Bromley, things have only become more complex.  There are now two Virginia courts considering the same matter – the Fairfax Circuit Court and a Special Court in Hampton, appointed by the Chief Justice of the Virginia Supreme Court.  The Fairfax court is to hear FCWA’s suit against Falls Church City in September, and the Special Court will hear Falls Church’s countersuit in October.  This odd situation would seem to violate the principle of judicial economy,  i.e., that courts should not waste limited time and resources.  Here the opposite has occurred, with a Special Court appointed after the litigation had already begun in Fairfax Circuit Court.  Falls Church City recently asked the Fairfax court to give way to the Special Court.  No thanks, the Fairfax court replied – this case is ours.

Then Fairfax Circuit Court took away a small victory Falls Church had won earlier this summer.  In May, the court had allowed Falls Church to counter sue, adding the Fairfax County Board of Supervisors as a party.  But on August 14, the court effectively reversed itself, agreeing with Fairfax County that Falls Church had failed to provide evidence of a key element of its countersuit.

For the average resident of Falls Church, the case is opaque and confusing.  Normally, the average resident wouldn’t care, but in this instance the outcome is significant, with millions of dollars at issue during a difficult budget time for the City.   The litigation costs alone must be big.  In the transcript of an August 13th court hearing, the Fairfax County Water Authority’s counsel said that agency had spent nearly $1 million on the case already and that Falls Church City’s costs presumably have been equivalent.

Interestingly, former City Councilman David Chavern, who was on the Council at the time of the initial decision to sue, has said, “We should just sell the system to a private company (such as Alexandria has) and be done with this whole debate.  It is ridiculous.”   Which raises the question, regardless of what happens in court, should the City continue to own a water system or not?  Has consideration been given to selling it to a private company, as Chavern suggests?

The City owes the public an explanation in an open forum of how we got here and what our options are.   The City leadership should not hide behind the “Can’t discuss current litigation” refrain.  It has a moral obligation to explain what it can explain about both the litigation and the future of the system.

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By Stan Fendley, Falls Church City
August 25, 2009 

Comments

4 Responses to “OPINION: We STILL Need Town Hall Meeting on Water War”

  1. Jonathan Smythe on August 25th, 2009 9:25 am

    Another question: What is the worst case scenario – if FCC loses both cases – and what impact will it have on FC?

    I would be against privatizing the water system – water should be a public utility by definition – why leave it to a for-profit corporate board to make decisoins on something as essential as water. Next thing you know, someone will advocate privatizing police or fire services because management of them is too troublesome for the government.

  2. Jim Hennessey on August 25th, 2009 3:45 pm

    Jonathan, one thing that is different about the Falls Church water system versus the type of public utility you refer to is that it serves the 10,000 residents of the City and 90,000+ residents of Fairfax County. Thus, 90% of the customers (the Fairfax County customers) view the water company as the “for profit” entity that you refer to since it is outside of their political process.

    There are other arguments for a sale as well. Could it be sold for a profit, or at least a return of the significant capital investment by Falls Church that is tied up in the water company. Sale to a third party could also take the decision making out of the political process (could cut both ways). Also, a third party may have better business skills remembering back to the billing fiascos of several years ago which admittedly now appear to be resolved.

    Your question of what is the potential liability to FC is a good one and if poor decisions have been made, an accounting of who made those decisions would be helpful in determining the long term management and course for the water company.

  3. Jonathan Smythe on August 25th, 2009 4:00 pm

    Jim: Your arguments for sale are well thought out, but I wouldn’t sell it just to get away from the political side. As you say, it is a significant capital investment (over many years) and most of the time, financial advisors would recommend that an entity keep its capital. IT is easy for those outside the city to say they are slaves to the city water system, but no-one forced them to buy their house. I doubt that the FCC water system connection brings down their house value. The billing fiascos are really the crux of the issue and the city manager should have a stronger will when it comes to firing, whether it is in the water department or elsewhere.

    I say keep the water department, warts and all.

  4. Arthur G on August 27th, 2009 2:32 pm

    It seems like it could be a never ending lawsuit as each side attempts to expand or maintain its service area.

    Although the lawsuit revolves around development and new service – what if FW offers service to an existing large user (revenue source) like Tysons Mall? There needs to be a distinct boundary so both sides can plan effectively.

    There have always been political issues with water and other utilities, and probably always will be, I am not sure a Town Hall meeting would help.

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