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News Release City of Fernley Gary Bacock, City Manager Voice (775) 784-9851 Fax (775) 784-9839 [EMAIL REDACTED] 03/01/06 www.cityoffernley.org FOR IMMEDIATE RELEASE CITY CONTINUES TO WIN WATER BATTLES Fernley, NV—March 01, 2006 The Third Judicial District Court has ordered that the lawsuit filed by Sonterra Development Company, LLC against the City of Fernley be dismissed. Sonterra filed a lawsuit against the City based upon an agreement entered into between the Town of Fernley and Wade Fernley (Sonterra’s predecessor) in 1994 that covered water and sewer service for Wade Fernley/Sonterra development projects. Sonterra wanted the Court to stand in the place of the City Council and substitute its judgment for that of the City. The City responded to the lawsuit by arguing that Sonterra was putting the cart before the horse because Sonterra had not taken the necessary steps to seek to have its development approved through the established City planning process. Until that was done the City could not make any determination as to how much water and sewer capacity Sonterra would need. The City further argued that it would be improper for the Court to order the City to comply with the 1994 agreement with so much still unknown. The Court agreed with the City’s argument and dismissed the lawsuit in its entirety. Mayor David Stix, Jr., stated, “The Sonterra group did not follow the proper procedure to obtain utility service from the City; they have not even requested annexation into the City yet.” Stix further stated, “No developer that has property outside the city boundaries should be able, through a lawsuit, to have their project put in a higher priority than those projects already within the city limits!” -End-