Minutes 05/14/1991 - Laserfiche WebLink

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.14 May 14, 1991 P~n~Ock s~reet Pennock Street as bounded on the East by G. Street, and on the West by a line 380 feet East of Deep Creek Boulevard, as shown on Tax M~p 151. ~ · McCracken Street McCracken Street as bounded on the West by the 1948 City of Portsmouth corporate limits line, and on the East by G. Street, as shown on Tax Map 151. Ivey Place as bounded on the South by Elliott Avenue and on the North by Fitzgerald Street (formerly Manle¥ Street), as shown on Tax Map 151. Ayes: Corprew, Epperson, King, Hawks, Lucas, Webb Nays: None 91-185 - Letter from the City Manager recommending adoption of a motion authorizing the City Manager to execute the service agreement ~nd the tax indemnification agreement with Virginia Power for PortCentre underground utilities. "In conjunction with the development of the PortCentre Commerce Park, the City of Portsmouth worked with Virginia Power to convert the overhead electrical distribution to an underground system. At a significant cost-savings to the City, the Engineering Department designed and supervised construction of the underground ductbank system in which Virginia Power would install the necessary wiring. In order for Virginia Power to proceed with completion of the system, the following documents must be completed by the City: (1) Underground service~greement for PortCentre Parkway at fixed costs of $172,329 and $57,699 = $230,028. (2) Tax idemnification agreement with Virginia Power to cover possible tax liability ($202,734) imposed on Virginia Power by I.R.S. for improvements to the electrical distribution system on PortCentre Parkway. The question of tax'~abi~it~ t0 Virginia Power did not become an issue on this project until after actual construction began and is a result of Federal tax legislation. After considerable research and evaluation of our alternatives, the City Attorney recommends that we execute the service agreement and the tax indemnification agreement. The .total amount of any potential future claims could ~be~29%~of the installation cost ($699,083) or $202,734. I concur and recommend your approval of a motion authorizing me to execute the underground service agreement and the tax indem-nification agreement with Virginia Power." Motion of Mrs. Lucas ana ~ded by Hawks, authorization was granted to the City Manager to execute the service agreement and the tax indemnification agreement with Virginia Power for PortCentre underground utilities, as requested, and by the following vote: Ayes: Corprew, Epperson, King, Hawks, Lucas, Webb Nays: None