Council approves agreement to decommission Moores Creek Dam, citing safety and liability

Lexington City Council approved an agreement authorizing the city to proceed with decommissioning Moores Creek Dam and to resolve related emergency water‑supply rights and obligations with Rockbridge County and the Rockbridge County Public Service Authority.

City Manager Tom and the city attorney summarized the background: the dam developed a sinkhole in December 2024 and staff estimated the two options — repair or decommission — at about $3,000,000. "We have budgeted $3,000,000 to do one of those two things," the city manager said, noting the amount appears in the FY‑27 draft budget. Staff described the proposed compensation agreement with the county and PSA as a means to resolve long‑term liability fairly for the community and its partners; the county and PSA will consider the agreement at upcoming meetings.

Councilors framed the decision as both a fiscal and public‑safety choice. One councilor recalled a 2017 presentation from the Virginia Department of Conservation and Recreation that recommended removal as a long‑term safety action. The city attorney and staff said they reviewed available easement records and characterized property‑owner water‑access claims as "no known legal obligations" at present; they said the agreement will allocate responsibilities and resolve uncertainties if further records indicate different obligations.

Councilor (speaker 6) moved to approve the agreement in substantially the form presented and to authorize the mayor to execute it; Councilor John Driscoll seconded. A roll‑call vote was taken and the motion carried unanimously.

The action directs staff to finalize the agreement with Rockbridge County and the Rockbridge County Public Service Authority. Staff said the dam (constructed in 1912) has not served as a primary water supply since the 1970s and that the agreement resolves a long‑standing liability in the city’s and county’s joint services framework.