Oh hell, there it is, I was looking in the wrong place. From VSP site:
"The clerk of a circuit court that issued a valid concealed handgun permit shall, upon presentation of the valid permit and proof of a new address of residence by the permit holder, issue a replacement permit specifying the permit holder's new address. The total amount assessed for processing a replacement permit due to a change of address shall not exceed $10, with such fees to be paid in one sum to the person who accepts the information for the replacement permit."
So I DO need to go to the City, the Henrico lady was right, and whoever I got on the phone at the City was wrong. Great! As you were :-)
ps- what do they want for "proof of new address" - utility bill perhaps? (I don't have the new address on my license, just my po box i.e. mailing address)