ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, July 12, 1995                   TAG: 9507120050
SECTION: CURRENT                    PAGE: NRV-2   EDITION: NEW RIVER VALLEY 
SOURCE: RICK LINDQUIST STAFF WRITER
DATELINE: RADFORD                                LENGTH: Medium


RADFORD OKS BUSINESS INCENTIVE RATE FOR ELECTRICITY|

Industries soon could have another incentive to locate or expand in Radford: a break in their electric bills.

City Council on Monday unanimously went along with an amendment to the electric service agreement it has with Appalachian Power Co. to provide an economic development billing credit for new or expanding industrial users. The city runs its own electric utility and buys power wholesale from Apco, which still must approve the amendment.

Electric Department Director Bill Willis told council the "incentive rate" would apply for up to 36 months to qualifying customers with industrial loads of 250 kilowatts or more. For a "typical customer" with a 750 kilowatt load, Willis estimated the rate would translate into a saving of $25,000 the first year, $16,000 the second year and $8,000 during the third year of the incentive plan.

The agreement may have come along too late to help Radford's newest industry, Mid Continent Nail Corp., which recently located a manufacturing facility at Radford Industrial Park.

"As the contract is written, it's for new customers after the contract is formalized," Willis explained Tuesday.

The incentive rate "would be subsidized by the stockholders of Apco and not by other ratepayers," Willis said.

In other business Monday, council agreed to appropriate an additional $3,861 to the Welfare and Social Services Department to correct an error in its 1995-96 budget and to raise some salaries. When coupled with state revenue of almost $21,500, the money restores to full-time two of three positions temporarily cut to part-time when money was tight.

Two positions - one for an eligibility worker and one for a social worker - were restored to full-time July 1, and the state budget included that change plus additional salary money for certain employees. However, the city's budget still only contained money to continue part-time slots. The state and city share administrative costs on an 80 percent-20 percent basis, explained Welfare and Social Services Superintendent Suzanne Glass, who was on hand for the second council meeting in a row to explain the situation.

Some council members balked at having to follow the state's lead and help cover the 7 percent pay increases. But Glass defended the raises for lower-paid employees who, she said, "are expected to have the wisdom of Solomon" and to be patient and compassionate too.

A senior eligibility worker would make just under $20,000, she said. "That's a person with several years experience who works independently."

Councilman Dave Worrell saw it differently.

"I have a very serious problem giving a 7 percent pay increase to someone who's making several thousand more than what many of our employees are making," he said, pointing out that city workers only got 3 percent raises this year.

In the end, council approved the changes 4-1, with Worrell casting the sole "no" vote.

In another matter, council agreed to give $1,000 to support the production of a TV documentary to feature Radford. Crews were in the city last week to tape segments of "Hope of Glory: The African-American Church."

Council agreed to not appropriate the money until Vartel Communications of Maryland completes the production.

In other action Monday, City Council:

Cut automatic annual pay increases for council members from $25 to $10 per month, effective next July 1. "I consider ourselves a volunteer board," said Councilman Bobby Nicholson, who favored the change. "You're better off working at McDonald's" in terms of the hours spent, he said.

OK'd a new policy to compute the value of alleys that council agrees to close. The land value will be calculated at 50 percent of the value per square foot of adjacent properties if the city does not retain any easements, and 25 percent if it does retain easements.

Approved closing three alleys on the Radford University campus, valued at $6,930.

Appropriated $2,400 to install a handicapped-accessible lift at the municipal swimming pool in Bisset Park.

Agreed, following an executive session, to issue a request for proposals to auction the former Camp Coffee property the city owns in Pulaski and Montgomery counties. The city also turned away an offer for the 30 or so acres in Montgomery County.



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