10-04-1978 - Workshop
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CITY OF EDGEWATER
CITY COUNCIL
WORKSHOP
October 4, 1978
Mayor Christy called the workshop to order at 6:30 P.M. in
the City Clerk's office.
ROLL CALL
Mayor Robert H. Christy
Councilman Louis J. Rotundo
Councilman Carl Shell
Councilman Walter B. Sikes
Councilman Calvin R. Dietz
City Attorney Judson Woods
City Clerk Sue Blackwell
Police Chief Earl Baugh
Present
Present
Present
Excused
Present
Present
Present
Also Present:
Mr. Burnett, Attorney for Teleprompter
Mr. Burnett said that the Teleprompter Company has contacted
people already on cable regarding a hookup to Home Box office.
They are also preparing a direct mailing to people not on the
cable~totry and increase the number of subscribers. They
will also start a door to door campaign in the near future.
There was some discussion about the present location of cable
in Edgewater.
The Teleprompter Company has agreed to install, free of charge,
cable in all City buildings and the Edgewater Elementary School.
The Council discussed the proposed ordinance primarily the
de~regulation of subscriber fees.
Councilman Rotundo asked if Teleprompter wanted to set their
own fees.
Mr. Burnett said that there were only 2 or 3 franchises in
Volusia County that remain under the system of control by the
City Councils. New Smyrna Beach and Holly Hill for example
still maintain that control and the request has been made that
it be deleted from their ordinances. 'The HBO fees are set
by the company that Teleprompter purchases this service from.
and there is not too much difference between the cable rate
for cities that retain control over the fees and cities that do
not. The control of rates is a hindrance to the expansion of
the system. It is more difficult to get financing for expansion
if there is rate control.
Councilman Sikes asked if a subscriber felt that they could
not afford a rate increase and cancelled the service would there
be any refund.
Mr. Barnett said he did not believe there was a refund. The
Company charges an installation fee not a deposit.
Mayor Christy said that the Company was proposing that they would
notify the Council 6 days in advance of a rate increase and he
believed the Council should have the right to speak on that.
Mr. Woods said that he had a copy of New Smyrna Beach Teleprompter
ordinance which states that rates may be increased provided that
thecfranchisee shall be required to give the City Clerk written
notice of said increase not less than 60 days in advance of the
effective date thereof and the City Commission shall give public
notice and may hold public proceedings in which the franchisee
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shall have the right to appear and give evidence. Said
proceedings shall not prevent the proposed rate increase from
going into effect as scheduled provided that if the:pity Commission
establishes rates different from those proposed by the franchisee
said different rates shall, on the first day of the month following
the date of the City Commission's action be the maximum rate that
can be charged until such rates are changed according to the
procedures establ'ished therein,
Mayor Christy said that he believed that would be a good way to
do it,
Mr. Burnett said that he believed if the fees were increased
unreasonably the loser would be the company, because they will
lose so many customers.
Councilman Sikes said that he believed that the City should
control the rates someway but also if the company is not able
to make a sufficient amount of money they will get out of the
business. If there is a reasonable request for an increase
he does not see why the Council would not agree to it.
Mr. Burnett said that the Council should bear in mind that if there
is a provision in the ordinance that has rate review by the Council,
that it will act to impair the ability of the company to borrow
on the system for expansion.
Councilman Sikes said that the Company could request a rate
increase from the Council at least 60 days prior to any anticipated
expansion and the Council should be able to act upon it in that
length of time.
Mrs. Blackwell said that she did not see any reason not to give
them the right to regulate their own rates. If they get too high
we can get another franchise since this is not an exclusive
franchise.
Councilman Rotundo said that if they provided more programming
and better service then they would not have a problem if they
wanted to raise their rates.
Mr. Burnett said that the public had a chance to voice their
opinion simply by not using the service if it does not improve or
if it becomes too expensive.
Councilman Sikes said that if it is a non-exclusive franchise
then he is inclined to agree with Mrs, Blackwell, to a point,
if this company overcharges then somebody else could come in -
There was more discussion about the cities that currently regulate
the rates.
Councilman Sikes asked if there was any assurance that Teleprompter
would not pullout of Edgewater altogether.
Mayor Christy said that perhaps we should have something in the
ordinance that would assure us they could not pullout of Edgewater
and still use the cable to service New Smyrna Beach and cities
to the North.
The City Attorney said that basically, the company was requesting
t~e removal of rate control, the $25,000 Bond and' the right of
flrst refusal on fiscal plan,
There was a discussion about the marketing techniques of Teleprompter.
The Council did not feel that they had sufficiently advertised in
Edgewater. The Council also wanted Telepromter to put in lines
to City installations.
It was the decision of the Council to have the City Attorney review
the proposed ordinance and make his recommendation to the Council.
The workshop was adjourned.
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