NEWPORT CITY – Thursday was day three of testimony in a case where the City of Newport is going head to head with the Village of Derby Center regarding a contract over water. Both sides have completed testimony. They will return in three weeks for closing comments.
The city and village entered into a contract in 1997 that said the village would supply water to the City Center Industrial Park. As part of the agreement, the city invested $800,000 to $900,000 for the construction of a water main with the understanding that the village would provide 10,000 gallons of water a day to the city.
In 2006, the village changed its rate arrangement from a minimum rate structure to a structure that takes into account how much water each customer uses plus how much is allotted or reserved for its use.
The city cried foul and filed a lawsuit.
In turn, Derby Center countersued because the city hooked on "unauthorized users." Derby Center also claims that Newport City didn’t maintain the master meter vault as required and that Newport City used water for which it didn't pay.
Following repeated attempts at mediation, the matter went to court.
For more on this story, see Friday's edition of The Newport Daily Express, for Jan. 25, 2013.