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R -17 -16 <br />A RESOLUTION AUTHORIZING THE EXECUTION OF A CONTRACT FOR <br />THE PURCHASE AND SALE OF WATER WITH THE CITY OF CHESAPEAKE, <br />VIRGINIA. <br />WHEREAS, in 1969 the City of Portsmouth and the City of Chesapeake entered <br />into an agreement for Portsmouth to sell water to Chesapeake at bulk rates; and <br />WHEREAS, in 1990 Portsmouth and Chesapeake entered into a new agreement <br />for the bulk rate sale of water, with a term extending through the end of 2020; and <br />WHEREAS, in 1996 Portsmouth and Chesapeake amended the agreement to make <br />various modifications and extend the term through the end of 2026; and <br />WHEREAS, Portsmouth and Chesapeake have negotiated a new water agreement <br />to replace the existing agreement in its entirety; and <br />WHEREAS, under the terms of the proposed new agreement, Chesapeake will <br />receive a reduction in price and the minimum amount of bulk treated water it is obligated <br />to purchase, and in exchange Portsmouth will receive a twenty year extension of the term <br />of the agreement through June 30, 2047; and <br />WHEREAS, the extension of Chesapeake's obligation to purchase water through <br />June 2047 will provide a total guaranteed increase in revenues to the Portsmouth water <br />system of approximately $72,000,000, and will further provide essential stability for the <br />operation and financing of the system; <br />NOW, THEREFORE, BE IT RESOLVED by the Council of the City of <br />Portsmouth, Virginia that it hereby approves the execution of a new Contract for the <br />Purchase and Sale of Water with the City of Chesapeake, Virginia, which agreement will <br />replace the existing agreement in its entirety, reduce the current rate paid by Chesapeake <br />for bulk treated water from $7.125 to. $6.245 per 1,000 gallons, provide for a two percent <br />annual increase in the said rate, reduce Chesapeake's minimum annual purchase obligation <br />from the current 4 million gallons per day to 2 million gallons per day, and have a term <br />commencing on July 1, 2017 and expiring on June 30, 2047. <br />BE IT FURTHER RESOLVED that the City Manager is authorized to execute <br />and deliver the Contract for Purchase and Sale of Water containing the above - stated terms. <br />ADOPTED by the Council of the City of Portsmouth, Virginia at a meeting held <br />on June 13, 2017. <br />Teste: <br />City Clerk <br />