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price for the property was based on an appraisal conducted <br />by the Housing Authority, taking into account the <br />restrictions placed upon the use of the land by the City. <br /> <br /> Mr. Roger Wiley, City Attorney, stated that the sale <br />price for the Leggett parking lot site was $300,000 and <br />for the Amoco site was $204,000. <br /> <br /> It was the consensus of Council to continue the <br />public hearing until the September 2nd meeting, with the <br />understanding that if the project or grant appeared to be <br />jeopardized by the delay, then the Council would hold a <br />special meeting. <br /> <br />PRESENTATION: VIRGINIA POWER - UNDERGROUNDING POLICY <br /> <br /> Mr. Andy Styles, representing Virginia Power, <br />reviewed the materials and equipment necessary to install <br />lines underground, noting that it is approximately ten <br />times more expensive to underground then it is to put <br />wires above ground on poles. Mr. Styles stated that the <br />average cost for undergrounding for a typical block would <br />be approximately $200,000, which would not include the <br />expense for the connection to the surrounding businesses <br />and homes. Mr. Styles stated that Virginia Power would be <br />happy to conduct in-field demonstrations for Council or to <br />hold a workshop on undergrounding. <br /> <br /> Responding to a question from Mrs. Gleason concerning <br />whether money was saved in the long run by undergrounding, <br />Mr. Styles stated that with the exception of damage due to <br />storms, underground maintenance was also more expensive. <br /> <br /> Mr. Towe asked whether the transformer located on 4th <br />Street between Market Street and the downtown mall could <br />be moved to Market Street. <br /> <br /> Mr. Dick Dudley, Director of Engineering for Virginia <br />Power, stated that the relocation of the transformer to <br />Market Street could be done, but it would necessitate <br />installing a larger transformer. <br /> <br /> Responding to a question from Mr. Barnes concerning <br />whether the same ten to one cost ratio would hold constant <br />when the investment tax credits were taken into <br />consideration, Mr. Styles stated that they would. <br /> <br /> Mr. O'Connell stated that that similar expenses for <br />undergrounding were found throughout the State. <br /> <br />RESOLUTION: AUTHORIZING CITY MANAGER TO SIGN CONTRACT WITH <br />VIRGINIA POWER <br /> <br /> Mr. Buck noted that action had been deferred on <br />authorizing the City Manager to sign the contract with <br />Virginia power until the undergrounding issues could be <br />addressed. <br /> <br /> Mr. O'Connell stated that the contract had been <br />negotiated by the Virginia Municipal League and staff had <br />reviewed it and found it fair and reasonable. <br /> <br /> With r'egard to a percentage of the increase in the <br />electric service being retroactive to the City, Mr. <br />O'Connell stated that the amount had been taken into <br />account and included in the City's budget. <br /> <br /> On motion by Mrs. Gleason, seconded by Mr. Barnes, <br />the resolution authorizing the City Manager to sign a <br />contract with Virginia Power was unanimously approved by <br />Council. <br /> <br />BE IT RESOLVED by the Council of the City of <br /> <br /> <br />