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Sentember 28. 1971
<br />
<br /> J 71-450 - "I submit the attached agreement between the Virginia Electric and Power Compan
<br />and the City of Portsmouth. This is for the installation of underground service in the
<br />Olde Towne Conservation Project. This requires VEPCO to have all of their facilities underf~
<br />ground by July 1, 1976, this program to be accomplished in 5 stages.
<br />
<br /> There will be a cost to the City of'the difference between the value of the present
<br />overhead system and the cost for the installation of the new underground system. This will
<br />be a differential cost between a rear lot underground distribution system with pad-mounted
<br />transformers and an overhead distribution system and includes the depreciated original cost
<br />of the existing overhead system, less the service value of this system, plus the cost of
<br />removing the existing system.
<br />
<br /> The City is to make five equal payments of $45,500 over a period of five years. If
<br />the cost as estimated is less, the City will only be required to pay tke lesser cost."
<br />
<br /> On motion of Mr.
<br />following vote:
<br />
<br />H011ey and seconded by Mr. Turner, the ~gt~em~n~ ~s adopted by the
<br />
<br />Ayes: Hotley, J6hnson, King, Irvine Smith,
<br />Nays: None
<br />
<br />Raymond Smith, Turner, Barnes
<br />
<br /> 71-431 "I submit herewith an annual audit of the Portsmouth Parking Authority for
<br />fiscal year ending June 30, 1971, with accompanying letter received from the Chairman of
<br />the Authority. The audit reflects the net income for the fiscal year of $2,818.66 with
<br />retained earnings of $39,666.
<br />
<br /> One factor in this fiscal year reflecting a reduction in net earnings has been a study
<br />made as to the feasibility of the construction of ramp parking. It has been found that
<br />there will' be a need for ramp parking which will require the Parking Authority to develop
<br />a method of financing this constructioni To accomplish this, it is necessary for the Parking
<br />Authority to broaden their revenue sources.
<br />
<br /> The City Council previously authorized the transfer of the operation of the parking
<br />lot east of the Federal Building to the Authority. However, this has not been accomplished
<br />because of the technicality of the enforcement authority, This has now been resolved.
<br />
<br /> It is my recommendation that the City of Portsmouth enter into a lease with the Parking
<br />Authority for the operation of the parking lot on Water Street as well as the parking lot
<br />adjacent to the Civic Center and Municipal Building. It is recommended that a section of
<br />the parking lot adjacent to the Civic Center be excluded from the lease and controlled by
<br />the City for municipal parking.
<br />
<br /> With the transfer of the operation of these lots plus the projected commitment for
<br />parking spaces, this should enable the Parking Authority to proceed with detailed plans
<br />for the construction of ramp parking."
<br />
<br /> On motion of Mr. Turner and seconded by Mr, Irvine Smith, to concur with the recommen-
<br />dation of the City Manager, was adopted by the following vote:
<br />
<br />Ayes: Holley, Johnson, King, Irvine Smith Raymond Smith, Turner, Barnes
<br />Nays: None
<br />
<br /> 71-452 "I submit the attached agreement between Hayes, Seay, Mattern and Mattern,
<br />Architects and Engineers, and the City of Portsmouth for engineering services to be rendered
<br />to the City. This agreement covers the proposed study of Portsmouth's water and waste water
<br />utilities including the analysis of needs, preparation of long-range plans and recommended
<br />rates, fees and charges to adequately and equitably finance these utilities.
<br />
<br /> In my budget message to the City Council in June, it was recommended that these steps
<br />be taken in order that a reasonable rate of return on the City's investment could be established.
<br />It is believed that the citizens of Portsmouth as owners of the water and waste water utilities
<br />are entitled to and should expect a reasonable rate of return on this investment. Based on
<br />current economic conditions, I consider a 5% return conservative and 7% not too high. The
<br />actual rate of return desired should be established by the City Council as a matter of public~
<br />record and the utility rates established to produce the desired return.
<br />
<br /> During the past years, the water utility has earned a return which has been paid to
<br />the General Fund for the benefit of the citizens of Portsmouth. However, the public has
<br />not associated this as a return to them which, in effect, it is as taxes would have to be
<br />increased if these funds were not available. These water funds represent cash that must
<br />be obtained to meet the municipal budget. This cash could be obtained from other sources
<br />as well as from a return on the public utilities. If Portsmouth were serving only tax-paying
<br />property owners, City Council could decide which source to use. Approximately 50% of prop-
<br />erty in Portsmouth is non-taxable. Therefore, if no return on the nublic utilities were
<br />realized, the tax-paying property owner would be asked to accept no return on his investment
<br />in exchange for a property tax burden not shared by 50% of the property in Portsmouth.
<br />
<br /> It is strongly recommended that
<br />be developed and adequately financed
<br />It is estimated that this study will
<br />be authorized to sign."
<br />
<br />this study be made in order that
<br />with an equitable rate of ~eturn
<br />not exceed $4S,000. ! recommend
<br />
<br />long-range plans can
<br />on investment establish
<br />the proper City officia
<br />
<br /> On motion of Mr. King and seconded by Mr. Raymond Smith, to concur with the recommendati6n
<br />of the City Manager, was adopted by the following vote:
<br />
<br />Ayes: Holley, Johnson, King, Irvine Smith, Raymond Smith, Turner, Bamnes
<br />Nays: None
<br />
<br />
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