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<br />,A)
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<br />TUESDAY
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<br />FEBRUARY 13, 1979
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<br />A special and duly-called meeting of the Council of the City of Martinsville, Virginia,
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<br />for the purpose of conferring with Mr. Walter W. Craigie, Jr., Executive Vice President
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<br />of Wheat, First Securities, Inc., Richmond, Virginia, on matters pertaining to the
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<br />financing of the City's proposed hydro-electric ("Ridgeway") project, was held Tuesday,
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<br />February 13, 1979, in the Council Chamber, City Hall, beginning at 3:00 P.M. All members
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<br />of Council were present, viz., Mayor William D. Hobson, presiding; William C. Cole, Jr.,
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<br />Vice Mayor; Barry A. Greene; L. D. Oakes; and Francis T. West. Also present were:
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<br />Mr. Jack Howe, Senior Vice President, Wheat, First Securities, Inc.,; Mr. Paul A. Stach,
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<br />First Vice President, Blyth Eastman Dillon & Company, Inc.; Mr. A. J. Lester, III,
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<br />Manager of Wheat, First Securities' Martinsville office; Mr. George B. Adams, Chairman,
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<br />Select Citizens Committee for Evaluation of R. W. Beck & Associates' Appraisal Report
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<br />C'Ridgeway" Project); and Mr. R. Stephens Pannill, member of said Select Citizens Committee.
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<br />Mr. Craigie, before presenting a prepared statement, informed Council that SB No. 163
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<br />(the "Electric Authorities Act" or "Joint Generation Act"), with some points yet to be
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<br />resolved by a conference committee, has been passed by both branches of the 1979 Virginia
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<br />General Assembly. Mr. Craigie's prepared statement, entitled, "Review of R. W. Beck
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<br />& Associates' Appraisal Report - Martinsville Hydroelectric Development", submitted for
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<br />and on behalf of Wheat, First Securities, Inc., Blyth Eastman Dillon & Company, Inc., and
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<br />Salomon Brothers, follows:
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<br />Pursuant to our conversations of January 16, 1979 at Wheat, First Securities,
<br />we have undertaken a further review of the above mentioned report. Because
<br />this report relies substantially on assumptions with respect to geological
<br />conditions and assumed design criteria, we believe that, while the economic
<br />analysis to date does not clearly establish a basis for authorizing the
<br />entire program, the projections for energy and the preliminary revenue
<br />estimates support without question the City's undertaking the second phase
<br />of engineering feasibility study. As we understand it, this phase involves
<br />collecting specific geological data and establishing specific design criteria
<br />of the Ridgeway project, developing necessary environmental studies and
<br />pursuing the next stage of licensing with the Department of Energy. If we
<br />were asked today whether the economics established under the R. W. Beck
<br />report establish a basis upon which the City of Martinsville can undertake a
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