Minutes 10/28/1969 - Laserfiche WebLink

Home Browse Search

Oatober 28. 1969 69-335 - "I submit the attached agreement between the Virginia Electric and Power Company and the City of Portsmouth, and recommend the proper City officials be authorized to sign. This provides for underground electrical service for the Diagnostic, Adjustive and Corrective Learning Center at West Road and Hartford Street." Motion of Mr. King that the proper city officials be authorized to sign the agreement was adopted, without dissenting vote. 69-336 - "I submit the attached agreement between the Seaboard Coast Line Railroad and the City of Portsmouth and recommend the proper City officials be authorized to sign. This cover~ the purchase of the property adjacent to the Municipal Building and the new Civic Center along with a parcel located south of South Street. This agreement provides that the City will purchase within 60 days from the execution, the property needed along the waterfront for the construction of the new bulkhead. The purchse price of this property is $91,900. It further provides for the purchase within 60 days of the land south of South Street in the amount of $19,300. This property is to be sold to the Housing Authority. It further provides that the City will, ~g~thin two years, purd~ase the balance of the property at the same per-square-foot price as it paid for the land needed for the bul~ead. This als0 provides that the City can enter upon the land needed for the bulkhead upon execution of this contract." Motion of Mr. Holley to concur in the recommendation of the City Manager was adopted, without dissenting vote. 69-337 - "At the meeting of the City Council on August 22, 1969, there was referred to the City Manager for study the feasibility of acquiring the Merrifields Water Company. Meetings have been held with the of the system and all the necessary data has been furnished the City. The value placed on the water and sewer systems by the owners is $701,759.43 which includes Section V now under construction as well as the Merrifields Apartments. The l~it prices as furnished by the owner were reviewed by the Public Works and Public Utility Departments and found to be in line for this type of construc- tion. Included in the above fixate is $40,567.20 for sewer and water facilities for the apartments and $6,900 for sewer clean, out laterals. These two items should not be included in the cost ~6 the City and this will reduce the total cost to approximately $654,000. This system will service about 516 houses when all are built. Under the City's water rates, these would produce approximately $24,000 annually. No revenue could be expected from the ~ewer system as the City would have no rights to make any charge. It will require revenue of $45,000 annually to amortize the purchase of this system over a 25-year period. ~%is shows mn annual deficit of $21,000~us operating empenses. ~e re- venue would amortize the purchase of the water system and pay operating exp~nses; however, the owner cannot separate the water and sewer systems and sell only the water system. To purchase the Company, it would be necessary to pay one-~hird down ($220,000) and the balance in eight annual installments. I cannot recommend this at this time as I can see no way the City can finance purchase due to the tight money market. Bonds cannot be issued at this time due to the 6% interest limitation on bonds. Also, to issue revenue bonds would require that they be submitted to a vote of the electorate. I am further advised by the City Attorney that no special le~/ can be placed on this section of the City to sup- port the purchase of this system. The City Attorney also feels there are certain legal aspects of ~e franchise that should be explored before any settlement could be made. I, therefore, ~e¢ommend that we be authorized to continue studying this matter." Motion of Mr. King to concur in the recommendation of the City Manager was adopted, without dissenting vote. 69-338 - "Portsmouth's representative on the Area Stadium Authority has requested funds for a feasibility study. This study is to be conducted to determine the proper location of an area-wide stadium. /lqe amot~t requested is $1,000 and I recommend we advise our representatives that Portsmouth will provide its funds contingent upon. the other political subdivisions in the area providing their $1,000." Motion of Mr. Johnson to concur in the recommendation of the City Mamager was adopted, without dissenting vote. - UNFINISHED BUSINESS - 69-308 - The following ordinance, approved on first reading at last meeting, was taken up and read: "~ ORDINANCE TO ~qEND THE ZONING ORDINkNCE OF THE CITY OF PORTSMOUTH, 1961, BY ~\~NDING SECTIONS 3-16 ~ND 5-5 PERTAINING TO OFF-STREET AUTOMOBILE PARKING SPACES." On motion of Mr. Turner, the ordinance was adopted, and by the following vote: Ayes: Barnes, Eastes, Holley, Johnson, King, Smith, Turner Nays: None