Minutes 08/25/1959 - Laserfiche WebLink

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66 TUESDAY AUGUST 25. 1959 4. Appalachian would supply service to street lights, water ~~ping and other city services at its applicable rates. 5. Appalachian would establish an office in }~tinsville, adequately staffed, for the pa~nnent of elec\Tic bills and se~Ticing of customers' requests. 6. Appalachian would retain as permanent employees those present employees of the City Electric Department, determined by the Company to be needed by it in its operation of the Martinsville system and to be qualified for their jobs. If the officials of the City determine that the sale of its electric system is in the best interests of the City and its consumers, Appalachian submits an offer, subject to the above indicated provisions, as follows: Base purchase price $4,846,500.00 Plus usable materials and supplies owned by the City, at its cost, up to an amount not to exceed . . . . . . . . $60,000.00 Respectfully subnitted, By: R. E. Hodges Assistant General }hnager In addition, Mr. Hodges noted that Appalachian found the City's electric system in exceptionally good condition; that Appalachian's rates or tariffs on file are exactly the same as the City's; that, if the offer made by Appalachian is accepted by the City, property taxes to be paid the City by Appalachian would amount approximately to $10,000 per yea:r on the present valuation and the one-half-per-cent gross receipts tax (on utilities) would yield the City another $5,000 per year. .bt the conclusion of the presentation and offer, which Council took under advisement, City Manager Hirst pointed out that it is his responsibility and desire to present a complete analysis of the City's electric utility operation in order that Council might have all the facts for its deliberations in considering the purchase offer made by Appalachian. Council indicated its desire for such information.