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Question: What about the article that appeared in The Virginian-Pilot on Jan. 24, 2017 that indicates that it may be a joint venture?
Response: This is not a joint venture; it is a purchase.
In January 2017, jointly with Aqua Virginia, the City presented several options that were being considered concurrently. These ranged from an outright purchase of the water system, or for the City to sell water to Aqua, or for it to remain as-is. The former was unacceptable to Aqua; the latter was unacceptable to the residents (and thus, to the City). The compromise position was for the City to sell water to Aqua through an agreement that would commit Aqua to improving its system over time to meet both water quality and fire flow requirements while still operating its well system to provide the majority of its water from the system. After months of negotiating that agreement, a window of opportunity opened and Aqua indicated that it was open to discussions about the potential sale of its system to Chesapeake. The City's focus immediately shifted to this latter solution, which is what the City and residents have preferred all along.
Many other steps remain before the City can complete this acquisition and integrate the system into Chesapeake's system, including receiving approval from the State Corporation Commission, which regulates the transfer of investor-owned utility assets. The City must also complete the due diligence reviews that are required for such a large action.
*The Virginian-Pilot, Jan. 24, 2017