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Update 2: Aqua Virginia Purchase Contract to City Council 25 September, 2018
It is with great pleasure that I inform you that the City Council will be considering a contract for the City to purchase the Indian River Water System owned by Aqua Virginia at their meeting at 6:30 p.m., Tuesday, September 25, 2018, in the City Council chambers of City Hall at 306 Cedar Road.
A copy of the agenda is attached, and can be found at http://www.cityofchesapeake.net/Assets/supporting_docs/actions_council/2018/09-25-18/09.25.18+Agenda.pdf.
This is a critical step in the process in getting City of Chesapeake water and fire protection to our residents currently served by Aqua Virginia, but there are still more steps to complete the process.
Under the proposed agreement, the City will take complete ownership of the Indian River Water System, including all physical assets, water service rights, customers, etc. This purchase process is much like purchasing a home, although it is more complicated because there is government oversight by the State Corporation Commission, and certain requirements must be satisfied with the Virginia Department of Health.
- Step 1 - Execute Contract
- Execute contract
- Step 2 - Contract sign + 80 days
- Complete due-diligence process
- Step 3 - Contract sign + 9 months
- Engineering design of long-term improvements
- Step 3 - Date undeterminable
- State Corporation Commission approval of purchase
- Step 4 - Closing
- Closing, date of ownership transfer
- Step 5 - Closing + 90 days
- Make initial connections to system (in-house and IDIQ)
- Discontinue use of existing wells & treatment system.
- Install some fire hydrants
- Step 6 - Closing + 12 months
- Construct long-term improvements (18 month construction time frame, starting ≈ 12 months after contract execution)
Additional information will be provided by press release if the City Council approves the resolution.
David Jurgens, P.E.
Public Utilities Director