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66 Mr. Rubenstein agreed with Mr. Gouldman's legal opinion, but feels an argument can be made that a living wage would promote efficient provision of services to the City. Mr. Toscano said, independent of the legal issues, concerns should be spelled out in advance so the committee can address then~ Mr. Toscano said questions include: what is the situation here and what would a living wage ordinance do to address it; would it apply to people the City contracts with for goods and agencies funded by the City, and if so, what would happen to them if they have to pay $8 an hour; and what is the prevailing rate for contractors. Mr. Toscano said he thinks it is an exaggerated statement to say that it would cost the City much more money. Ms. Richards said it is a social justice issue and she feels it is up to the City to set the standard. Mr, Caravati talked about the implications of the Davis Bacon Act and said that if the proposal is approved, care needs to be taken in how it is done. PRESENTATION: RIVANNA RIVER FESTIVAL Ms. Leslie Middleton announced that the third annual Rivanna River Festival will be held on Saturday, May 6~ in conjunction with the Jtmior League's Quacking fora Cause Duck Race. The event will focus attention on the area's water resources. Ms. Middleton thanked the City for the support of the event by the Department of Recreation and Leisure Services. REPORT: CRITERIA FOR UNDERGROUNDING OF UTILITIES Mr. O'Connell reminded Council that the issue ofundergrounding of utilities was previously discussed and it was agreed to reconsider the matter after adoption of the budget, Mr. O'ConnelI said that a total of $2.3 million over a five year period has been budgeted for undergrounding, and the average cost of undergrounding is approximately $80,000 a pole. Staff recommend that a measured approach to undergrounding be taken as opportunities become available that leverage other funding. West Main Street and downtown mai1 area are recommended as priority areas. Mr, O'Connell reviewed the criteria recommended and noted that if Council approves and follows the criteria, he does not feel that undergrounding on Fontaine and Jefferson Park Avenues would be done. Mr, Toscano asked for an example of the way increased assessments would offset the cost ofundergrounding. Ms. Mueller said that cost of the undergrounding project on 1st Street is $137,000. After completion of the development on that block, the completed project is expected to be assessed at $5 million, with $55,500 in taxes generated. Mr. O'Connell said that the criteria could be applied to small projects as well and feels it will help stimulate development. Ms. Muetler said she considers the recommended criteria to be a starting place and future adjustment can be made as needed. Mr. Cox asked what happens if there is piecemeal development and some of the owners are interested in sharing the cost of undergrounding and others are not, and Ms. Mueller said it is not yet known what would happen. Mr. O'Connell said staff are looking for ways to try to maximize dollars, and added that he feels the corridor study may help in creating a master plan. Responding to qu~ions from Mr. Caravati, Ms. Mueller said that VDOT charges for estimates and the best the staff can do at this point is make rough estimates, and said that the Director of Economic Development recommended the caveat that the project be completed within 24 months as a-way of assuring the City gets something back for its efforts. Iris. Mueller noted that staff are finding that undergrounding telephone service is more expensive than electric service.