Sullivan’s Island and Charleston Water System Reach Water Settlement

Sullivan’s Island, Charleston Water System Settle Long-Running Water Debacle

Sullivan’s Island, a town in South Carolina, has recently reached a conclusive settlement agreement with the Charleston Water System that ensures uninterrupted water service to island residents.

The newly signed contract and ongoing settlement culminate the protracted dispute launched by the Charleston Water System over $640,000, it affirmed the town was in debt. The utility had earlier threatened to halt the town’s water supply if the said amount remained unpaid.

The New Contract and Settlement Agreement

The updated agreement, signed on Wednesday, facilitates a comprehensive settlement of any and all claims related to the prior contract from 1994, as observed in the mutual release and settlement agreement.

Under this agreement, Sullivan’s Island consented to remit $1.1 million to the Charleston Water System to offset all the amounts due. The pact highlights that the town has already paid $73,632 of this sum ahead of the contract implementation, leaving an outstanding amount of $1.065 million.

The New Water Rate Schedule

In line with the new deal’s volumetric rate schedule, Sullivan’s Island will, from July 1 to June 30, 2025, be required to pay $1.40 per thousand gallons of water. The corresponding rate for the subsequent year, however, is subject to possible alteration, contingent upon any potential shortfall.

Contract Duration

The newly signed agreement offers a robust duration of 40 years, with provisions for extensions in additional ten-year terms, granted both parties concur.

Review of Previous Contractual Terms

The Charleston Water System indicated that Sullivan’s Island altered their payment per 1,000 gallons in 2017. This change took place even though the town had paid the same rate since the contract’s inception in 1994.

Reportedly, the town revised the payment from $1.22 per 1,000 gallons to 88 cents per 1,000 gallons. In response, Charleston Water System proposed a new rate of 89 cents per 1,000 gallons after consulting a rate consultant. Unfortunately, the town rejected this proposal.

Future Outlook

With the threat of a shutdown looming due to contract expiration on July 20, Charleston Water System had prepared to dispatch delinquency notices to both the state agencies and the town, warning of a potential water suppression. However, this crisis has been averted following the last-minute compromise.

This settlement eliminates any impending interruptions to water supply to Sullivan’s Island, ensuring that the residents will continue to receive essential services without the specter of unexpected cutoffs. The new agreement solidifies the partnership between the town and the Charleston Water System, hopefully heralding a new era of cooperation and mutual understanding for the betterment of the island community.