Minutes 11/14/1989 - Laserfiche WebLink

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TUESDAY, NOVEMBER 14, 1989 In acceptance of City Manager Brown's recommendation, made as part of his report covering the Finance Department's Utility Billing Division and a comparison of this division's personnel complement and workload with that of several other Virginia cities who operate electric utility systems, Council unanimously appropriated the sum of $11,675.00 (with one-half of this amount to be financed by the Electric Fund and the other half to be financedby the Water Fund) for the employing of an additional meter reader (including fringe benefits) as of December 1, 1989, and for the remainder of the fiscal year. Continuing its consideration (from recent meetings) of the method reported in use by Adelphia Cable Communications in calculating and passing on franchise fees assessed against in-City subscribers, and the terms of the franchise now in force, Council received through City Manager Brown a report prepared by Finance Director Richard D. Fitts in which Mr. Fittsdealt with the question heretofore raised, "Is the (franchise tax) fee being fairly assessed?", noting that the franchise agreement calls for a 5% pass-on franchise fee on gross revenue, less certain deductibles, whereas Adelphia currently is arbitrarily calculating and passing on a franchise fee against in-City subscribers of 4%. According to a recent statement provided by Adelphia, its gross billings to in-City customers for the calendar year 1988 were $1,,210,202.23 (exclusive of franchise fees passed on), from which the sum of $301,518.63 was deducted for "pay services", 2% bad debits, and copyright fees, leaving a net billing of $908,683.60 against in-City subscribers. To this net amount Adelphia applied the franchise-stipulated fee of 5% and paid to the City the product thereof as franchise fee for 1988, viz., $45,434.18. Mr. Fitts pointed out, however, in