Politics & Government
North Bay Cities, Counties Agree To PG&E's Wildfire Damages Costs
Four cities and counties and five other jurisdictions have agreed to accept a mediator's proposal of $415 million.
NORTH BAY, CA — Napa and Sonoma counties and the cities of Santa Rosa and Napa announced Tuesday they have agreed to a proposed settlement with PG&E over the damage caused to them during the 2017 wildfires in the North Bay. The four cities and counties and five other jurisdictions agreed to accept a mediator's proposal of $415 million to resolve their fire damage claims. The mediator's proposal is for the local government plaintiffs only, and is separate from residents, individuals and businesses that have fire damage claims against PG&E.
The process to allocate the $415 million among the nine public entities has not been completed.
In-person mediation sessions in San Francisco before retired Judge Jay Gandhi lasted several days. The participants included 14 public entities with claims from several 2017 North Bay wildfires, the 2015 Butte Fire and the 2018 Camp Fire.
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Gandhi's proposal includes a total payment of $1 billion by PG&E to the 14 public entities. The payments will be incorporated in PG&E's Chapter 11 plan of reorganization and is subject to confirmation by the Bankruptcy Court.
PG&E filed for bankruptcy earlier this year. There is no guarantee of funding until the bankruptcy proceedings are completed, which is not anticipated until mid-2020, Sonoma County and Santa Rosa officials said in their release about the mediator's proposal.
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"Our commitment since day one of this legal matter has been to protect the interests of our residents and taxpayers," Santa Rosa Mayor Tom Schwedhelm said.
"The agreement, if approved, will not only help to support Santa Rosa's recovery, but also to aid in our ability to invest in resiliency measures that may better protect our community from future disasters," Schwedhelm said.
"This agreement allows us to recover financial losses and repair fire damages to roads, infrastructure and watersheds while protecting taxpayers," Sonoma County Board of Supervisors Chair David Rabbitt said.
"This agreement, if approved, will allow Napa County to make necessary repairs to damaged county infrastructure and recover the county's financial losses as a result of the fires," Napa County Board of Supervisors Chair Ryan Gregory said in a news release about the mediation agreement.
"The city is pleased that PG&E has agreed to this settlement and that taxpayers will not bear the burden of the city's fire-related expenses and losses," Napa City Manager Steve Potter said.
"The city will continue to serve and support recovery for the individuals, families and businesses devastated by the North Bay Fires," Potter said.
—Bay City News Service
