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Working in cooperation with the McAuliffe Administration, the South Central Wastewater Authority ("South Central") today approved the terms of a settlement agtreement to end the lawsuit initiated in September 2016 against the City of Petersburg to collect past-due wastewater treatment payments that currently exceed $1.9 million. The City has made only one monthly payment for the wastewater treatment service provided by South Central since the end of May 2016.

South Central was established by the Cities of Colonial Heights and Petersburg and the Counties of Chesterfield, Dinwiddie, and Prince George. South Central serves wastewater treatment needs in all five localities and charges each locality for this service in proportion to its usage. South Central is particularly dependent upon regular and timely payments by the City of Petersburg, whose share of these costs account for more than half of South Central's budget for operations and maintenance. 

They key terms of the settlement agreement call for the City of Petersburg to (i) resume making timely monthly payments commencing in December 2016, (ii) make a lump sum payment of approximately $1.2 million by December 15, 2016, to be applied to the City's delinquency, and (iii) work in good faith to develop a two-year payment schedule to redeem the City's remaining delinquency. The settlement agreement must be ratified by the City Council of the City and the South Central Board, both of which will meet this week to consider such action. 

The Administration and the City requested South Central to settle the lawsuit to facilitate the City's closing of a short-term working capital financing and, desiring to promote regional harmony, South Central has responded. But more importantly, if the City complies with the agreed-upon payment schedule, South Central will be able to continue to provide uninterrupted wastewater treatment service in an environmentally-responsible manner without imposing an additional financial burden on the customers and taxpayers of its other member localities.