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Williamsburg negotiates extended water supply deal with Newport News; no upfront payment required
Summary
City staff reported a renegotiated long-term water supply agreement with Newport News that provides up to 4 million gallons per day of capacity (1 million existing + 3 million on bulk purchase at industrial rate) without the previously anticipated $18 million upfront payment; council will consider the contract in June.
City staff told the Williamsburg City Council on May 5 that negotiations with Newport News Water Works produced a revised long-term water supply arrangement that officials say secures additional capacity without the $18 million upfront payment the city had previously faced.
Mister Reid (city staff presenting the agenda item) summarized the contract history, saying the original 2009 agreement provided for 1 million gallons per day and included an option that would have required a second payment that, together with earlier amounts, could have reached roughly $18 million. Staff recommended foregoing that upfront payment and, instead, extending…
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