The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, October 25, 1995            TAG: 9510250499
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER 
DATELINE: VIRGINIA BEACH                     LENGTH: Medium:   52 lines

BEACH COUNCIL APPROVES LAUNCHING NEGOTIATIONS WITH PIPELINE CONTRACTORS

The City Council gave permission Tuesday to negotiate construction contracts with seven firms that submitted low bids to complete the Lake Gaston pipeline.

The contracts, which came in $12 million under budget, will cost city taxpayers at least $91 million. Most of the money has already been collected from residents' water bills, officials said. The city will issue bonds for the rest.

Council members, though cautious about continued opposition from North Carolina and the Roanoke River basin, savored the moment Tuesday. Early this month, the city received permission to begin construction when a federal judge upheld the secretary of Commerce's decision to allow the project and a federal agency issued the last required permit.

The seven contractors will build the 74 miles of the pipeline not yet constructed; install a system to move the water through the pipe; and complete a pumping station at the lake, which straddles the Virginia-North Carolina border.

Council members spent 10 minutes praising each other and city staff members for pursuing the pipeline project despite more than 12 years of legal battles.

``It's been a great day for the city,'' Council member W.W. Harrison Jr. said Tuesday.

But they are clearly still nervous about the pipeline's future.

``Carolina keeps insisting they're going to do something,'' council member John A. Baum, a member of the council's Water Task Force, warned his colleagues. ILLUSTRATION: PROPOSED CONSTRUCTION SCHEDULE

Nov. 20 City signs formal contracts

Nov. 27 City gives contractors go-ahead to proceed with

construction

December Preliminary site work conducted along pipeline's

76-mile route

Jan. 1996 Equipment and supplies ordered for construction

projects

March 1996 Work on all seven contracts under way

April 1998 Norfolk completes expansion of water treatment

facilities to handle Lake Gaston water and the pipeline begins

pumping water to Hampton Roads

by CNB