CLEARWATER, FL, Oct. 19, 2010 -- Tampa Bay Water's board of directors today approved key terms for a $6 million settlement agreement with CDG, the firm that provided construction management and administration for the Regional Reservoir. When finalized, the settlement agreement will generate the first proceeds from the litigation filed against the reservoir's designer, contractor and construction manager for the abnormal cracking in the facility's interior soil-cement lining.

"This settlement is a good outcome for the Tampa Bay region's water rate payers and fairly reflects CDG's responsibilities as construction manager performing administrative duties for the reservoir," said General Manager Gerald J. Seeber. "We appreciate the willingness of CDG to mediate in good faith. This outcome shows the process can work for both sides."

With the approval of the terms of the agreement, the board also authorized Tampa Bay Water's general manager and general counsel to work out the remaining details and finalize the settlement with CDG.

Tampa Bay Water filed the lawsuit in federal court in December 2008 against HDR Engineering Inc., the reservoir's design engineer; Barnard Construction, the contractor; and CDG, which provided construction management. The legal case against HDR Engineering Inc., and Barnard Construction continues, with a trial scheduled for July 2011.

As the legal case progresses, Tampa Bay Water is procuring a permanent fix for the soil cement cracking so the reservoir can function as intended for the long-term.

Tampa Bay Water provides wholesale water to the public utility systems of Hillsborough, Pasco and Pinellas counties as well as the cities of New Port Richey, St. Petersburg and Tampa. Web: www.tampabaywater.org

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