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Home My WebLink AboutAPRIL 6, 1983 MINUTES "VVORLD'S LARGEST RESORT CITY" CITY COUNCIL MAYOR LOUTS R. ]ONES, B.y.id@ B .... gb VICE-MAYOR BARBARA M. HENLEY, P..g. B.,..gh 10fiN A. BAUM, B.,..gb ,NANCY A. CREECII. Al L.,g@ IIAROLD IIEISCIIOBER, At L.,g@ Ii. JACK JENNINGS, JR., Ly.,,b..@. B.,.,,,h ROBERT G. ]ONES, Al L.,g@ W. Ii. KITCIIIN, lit, Vigi.i,, B,.,b REBA S. AI,CLANAN, P,i.,@@, A.@@ B.,..gh 1. IIENRY AI,COY, JR.. K@.p,@ill, B.,..gb 212 C17 Y IIALL BUILDING MEYERA E. OI]ERNDORF, A, L.,g, MliV/CIPAL CENTER VIRGINIA BEACII, VIRGINIA 2345(, RUTII IIOD(;ES SMiTit, CMC, Cily Cl@,k (804) 427 -4 30 3 CITY COUNCIL AGENDA SPECIAL MEETING APRIL 6, 1983 7:00 p.m. COUNCIL CONFERENCE ROOM FORt4AL SESSION A. CALL TO ORDER B. READING OF MAYOR'S LETTER STATING PURPOSE OF SPECIAL MEETING C. ROLL CALL OF COUNCIL D. MOTION TO RECESS INTO INFORMAL/EXECUTIVE SESSION E. COX CABLE'S RATE INCREASE PROCEDURE F. ADJOURNMENT (after which City Council will conduct the reqularly scheduled FY 183-184 City Operating Budget Workshop) M I N U T E S VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia April 6, 1983 In accordance with Section 2-21 of the Code of the City of Virginia Beach, Virginia, the Special Meeting of the Council of the City of Virginia Beach, Virginia, was called to order by Mayor Louis R. Jones, in the Conference Room, City Hall Building, on Wednesday, April 6, 1983, at Seven o'clock in the evening for the purpose of further deliberation concerning Cox Cable's proposed rate increase and/or royalty fee as it may or may not apply to the City's franchise agreement with Cox Cable TV. Council Members Present: John A. Baun, Harold Heischcber, vice mayor Barbara M. Henley, H. Jack Jennings, Jr., Mayor Louis R. Jones, W. H. Kitchin, III, Reba S. McClanan, J. Henry McCoy, Jr., D.D.S., and Meyera E. Oberndorf Council Members Absent: Nancy A. Creech*, and Robert G. Jones** 4/6 83 OFFICE OF THE MAYOR MUNICIPAL. CENTER VIRGINIA BEACH, VIRGINIA 23456-9002 (804) 427-4581 April 4, 1983 HONORABLE MEMBERS OF CITY COUNCIL In accordance with City Code Section 2-21, I hereby call a SPECIAL MEETING of the Virginia Beach City Council to be held at 7:00 p.m. in the Council Conference Room on Wednesday, April 6, 1983, for the purpose of further deliberation concerning Cox Cable's proposed rate increase and/or royalty fee as it may or may not apply to the City's franchise agreement with Cox Cable TV. Louis R. Jo+(S Mayor LRJ:asd cc: Thomas H. Muehlenbeck, City Manager J. Dale Bimson, City Attorney Ruth Hodges Smith, City Clerk Pam Lingle, Public Information officer Members: Virqinia Beach City Council Received Notice John A. Baum Nancy A. Creech Harold Heischober Barbara M. Henley, Vice-mayor H. Jack Jennings, Jr. Robert G. Jones W. Hugh Kitchin III Reba S. McClanan J. Henry McCoy, Jr., D.D.S. Meyera E. Oberndorf - 2- ITEM #19713 Mayor Jones read the following Notice of Special Meeting: "HONORABLE =ERS OF CTTY COUNCIL "In accordance with Code Code Section 2-21, I hereby call a SPECIAL MEET-ING of the Virginia Beach City Council to be held at 7:00 p.m., in the Council Conference on Wednesday, April 6, 1983, for the purpose of further deliberation concerning Cox Cable's proposed rate increase and/or rcyalty fee as it may or may not apply to the City's franchise agreement with Cox Cable TV." ITEM #19714 Mayor Jones entertained a motion to permit Council to conduct its INFORMAL SESSION to be followed by an EXECUTIVE SESSION pursuant to the exemptions from opening meetings allowed by Section 2.1-344 Code of Virginia, as amended, for the following purpose: 1. LEGAL MATTERS: Consultation with legal Counsel or briefings by staff meirbers, consultants or attorneys, pertaining to actual or potential litigation, or other legal matters within the jurisdiction of the public bc)dy. Upon motion by Councilman Heischober, seconded by Councilman Jennings, City Council voted to proceed into the EXECUTIVE SESSION following the INFORMAL SESSION. Voting: 10-0 Council members Voting Aye: John A. Baun, Harold Heischober, Vice Mayor Barbara M. Henley, H. Jack Jennings, Jr., Mayor Louis R. Jones, W. H. Kitchin, iii, Reba S. McClanan, J. Henry McCoy, Jr., D.D.S., and Meyera E. Oberndorf Council Members Voting Nay-. None Council members Absent; Nancy A. Creech*, and Robert G. Jones** - 3- ITEM #19715 Mayor Jones advised the City Clerk asked him to remind Council of the breakfast meeting with the Industrial Development Authority on Thursday, April 7, 1983, at 8:00 a.m., and information which has been placed before them for this meeting. City Council RECESSED into EXECUTIVE SESSION, (7:10 p.m.) ITEM #19716 City Council reconvened into the FORMAL SESSION with the following Council Members Present: John A. Baun, Nancy A. Creech*, Harold Heischober, Vice Mayor Barbara M. Henley, H. Jack Jennings, Jr., Mayor Louis R. Jones, W. H. Kitchin, III, Reba S. McClanan, J. Henry McCoy, Jr., D.D.S., and Meyera E. Oberndorf Council Members Absent: Robert G. Jones** *COUNCILWOMAN CREECH ENTERED MEETING AT 7:25 p.m. -4- ITEM #19717 The City Clerk read the following Resolution: "RESOLUTION OF CITY COUNCIL DI@TTNG COX CABLE VIRGINIA BEACH, INC., TK) In4EDIATELY CEASE AND DESIST ERCM @ING ON AND COLLBCTING FROM ITS SUBSCRIBERS AN UNAURHORIZED EIGHTY-ONE CENTS ($.81) CBARGE ENTITLED "FEDERAL COPYRIGHR FEE", AND FURTHER DIRECTING COX CABLE VIRGINIA BEACH, INC., TO CREDIT THE MAY, 1983, BILLING ST OF AIL OF ITS SUB- SCRIBERS WHO UNVE PAID THE "FEDERAL COPYRIGHR FEE" TBE SLM OF EIGHTY-ONE CENTS ($.81), OR, IN THE ALTE@IVE, TO REMIT THE SU,4 OF EI=-CNE CENRS ($.81) TO THOSE SUBSCRIBERS WITBIN THIRTY (30) DAYS OF THE DATE OF ADOPTION OF TBIS RESOLUTION "WBEREAS, Cox Cable of Virginia Beach, Inc., was granted a franchise for the right and privilege to construct, operate and maintain a cable televisim system within the City of Virginia Beach, Virginia, pursuant to Section 15.1-23.1 of the Code of Virginia, for the terrn and upon the conditions set forth in the Ordinance Proposing to Grant such a franchise, said ordinance passed by Council on March 17, 1975, the grant of said franchise being adopted by Council on May 17, 1976; "WHEREAS, a condition of the franchise being that the grantee, Cox Cable Virginia Beach, Inc., upon acceptance of said franchise, shall be bound by the provisions of said Ordinance (Franchise Ordinance, Section 23F); "WHE@, by provision of the ordinance, changes in rates for basic service shall be authorized by the City only after consideration by City Council (Franchise ordinance, Section 8D); "WBEREAS, on April 1, 1983, Cox Cable Virginia Beach, Inc., included as a separate line item in its monthly billing statement to its subscribers, a charge of eight-one cents ($.81) entitled "Federal Copyright Fee"; 'WM@, the eighty-one cents ($.81) increase in month-ly billing stat@ts represent a change in rate for basic service; "WHEREAS, such change in rate was not authorized by the City as r@red by the Franchise ordinance; and, 'WM@, Cox Cable Virginia Beach, Inc., has never, pursuant to their obligations under the Franchise ordinance, requested the City for authorization to impose and collect the eighty-one cents ($.81) fee, or in any way petitioned for such authorization. - 5- "NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF TBE CITY OF VIRGINIA BEACH, VIRGINIA: "l. Cox Cable Virginia Beach, Inc., is hereby directed to inmdiately case and desist frcin imposing on and collecting fran its subscribers the unauthorized eighty-one cents ($.81) "Federal Copyright Fee", the @sition and collection of which is in vio-lation of the provisions of the Franchise ordinance to which Cox cable Virginia Beach, Inc., is bound. 112. FURTBEPMORE, cox Cable Virginia Beach, Inc., is hereby directed to credit the May, 1983, billing statement of all of its subscribers who have paid the unauthorized "Federal Copyright Fee" the sun of eighty-one cents ($.81), or, in the alternative, to remit the sun of eighty-one cents ($.81) to those subscribers within thirty (30) days of the date of adoption of this Resolution. 113. FURTHER40RE, The City M@ger is hereby directed to mail a copy of this Resolution by certified mail to Cox Cable Virginia Beach, Inc., at its principle place of business, 5200 Cleveland Street, virginia Beach, Virginia 23462. "4. The foxwarding of this Resolution shall constitute official notice to Cox Cable Virginia Beach, Inc., that it is currently in violation of, and continues to be in violation of, the Franchise Ordinance by its @sition and collection of an eighty-one cents ($.81) "Federal Copyright Fee", which fee represents an unauthorized chanqe in rate for basic service." Mayor Jones advised "there is a change to this Ordinance in wherever the eight-one cents ($.81) appears so shall the following: OR ANY ADDITION THERETO -6 - Upon motion by Councilman Heischober, seconded by Councilman Jennings, City Council voted to ADOPT the Resolution of City Council directing Cox Cable Virginia Beach, Inc., to immediately cease and desist from imposing on and collecting from its sub- scribers an unauthorized eighty-one cents ($.81), or any addition thereto, charge entitled "Federal Copyright Fee", and further @irecting Cox Cable Virginia Beach, Inc., to credit the May, 1983, billing statement of all of its subscribers who have paid the "Federal Copyright Fee" the sum of eighty-one cents ($.81), or any addition thereto, or, in the alternative, to remit the sum of eighty-one cents ($.81), or any addition thereto, to those sub- scribers within thirty (3U) days of the date of adoption of this Resolution. Voting: 10-0 Council Members Voting Aye: John A. Bauii, Nancy A. Creech, Harold Heischober, Vice Mayor Barbara M. Henley, H. Jack Jennings, Jr., Mayor Louis R. Jones, W. H. Kitchin, III, Reba S. McClanan, J. Henry McCoy, Jr., D.D.S., and Meyera E. Oberndorf Council Members Voting Nay: None Council Members Absent: Robert G. Jones** **COUNCILMAN JONES DID NOT ENTER UNTIL BUDGET WORKSHOP -7- A meeting of the Council of the City of Virginia Beach, virginia, was held in the Council Chambers, in the Administration Building, on the 6th.day of April, 1983. On motion by Councilman Heischober and seconded by Councilman Jennin2s, ihe t8llowing resolution was adopted. RESOLUTION OF CITY COUNCIL DIRECTING COX CABLE VIRGINIA BEACH, INC. TO IMMEDIATELY CEASE AND DESIST FROM IMPOSING ON AND COLLECTING FROM ITS SUBSCRIBERS AN UNAUTHORIZED EIGHTY-ONE CENTS ($.81), OR ANY ADDITION THERETO, CHARGE ENTITLED 'FEDERAL COPYRIGHT FEE,' AND FURTHER DIRECTING COX CABLE VIRGINIA BEACH, INC. TO CREDIT THE MAY, 1983 BILLING STATEMENT OF ALL OF ITS SUBSCRIBERS WHO HAVE PAID THE 'FEDERAL COPYRIGHT FEE' THE SUM OF EIGHTY-ONE CENTS ($.81), OR ANY ADDITION THERETO, OR, IN THE ALTERNATIVE, TO REMIT THE SUM OF EIGHTY-ONE CENTS ($.81), OR ANY ADDITION THERETO, TO THOSE SUBSCRIBERS WITHIN THIRTY (30) DAYS OF THE DATE OF ADOPTION OF THIS RESOLIJTION WHEREAS, Cox Cable of Virginia Beach, Inc., was granted a franchise for the right and privilege to construct, operate and maintain a cable television system within the City of Virginia Beach, Virginia, pursuant to S15.1-23.1 of the Code of Virginia, for the term and upon the conditions set forth in the Ordinance Proposing to Grant such a franchise, said ordinance passed by Council on March 17, 1975, the grant of said franchise being adopted by Council on May 17, 1976; WHEREAS, a condition of the franchise being that the grantee, Cox Cable Virginia Beach, Inc., upon acceptance of said franchise, shall be bound by the provisions of said ordinance (Franchise Ordinance, Section 23F); WHEREAS, by provision of the ordinance, changes in rates for basic service shall be authorized by the City only after consideration by City Council (Franchise Ordinance, Section 8D); WHEREAS, on April 1, 1983, Cox Cable Virginia Beach, Inc., included as a separate line item in its monthly billing statement to its subscribers, a charge of eighty-one cents ($.81), or any addition thereto, entitled 'Federal Copyright Fee;" WHEREAS, the eighty-one cents ($.81), or any addition thereto, increase in monthly billing statements represents a change in rate for basic service; -8- WHEREAS, such change in rate was not authorized by the City as required by the franchise ordinance; and WHEREAS, Cox Cable Virginia Beach, Inc., has never, pursuant to their obligations under the franchise ordinance, requested the City for authorization to impose and collect the eighty-one cents ($.81), or any addition thereto, fee, or in any way petitioned for such authorization. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINA: 1. Cox Cable Virginia Beach, Inc. is hereby directed to immediately cease and desist from imposing on and collecting from its subscribers the unauthorized eighty-one cents ($.81), or any addition thereto, 'Federal Copyright Fee," the imposition and collection of which is in violation of the provisions of the franchise ordinance to which Cox Cable Virginia Beach, Inc. is bound. 2. FURTHERMORE, Cox Cable Virginia Beach, Inc. is hereby directed to credit the May, 1983 billing statement of all of its subscribers who have paid the unauthorized 'Federal Copyright Fee" the sum of eighty-one cents ($.81), or any addition thereto, or, in the alternative, to remit the sum of eighty-one cents ($.81), or any addition thereto, to those subscribers within thirty (30) days of the date of adoption of this Resolution. 3. FURTHERMORE, the City Manager is hereby directed to mail a copy of this Resolution by certified mail to Cox Cable Virginia Beach, Inc. at its principal place of business, 5200 Cleveland Street, Virginia Beach, Virginia 23462. 4. The forwarding of this Resolution shall constitute official notice to Cox Cable Virginia Beach, Inc. that it is currently in violation of, and continues to be in violation of, -2- -9- the franchise ordinance by its imposition and collection of an eighty-one cents ($.81), or any addition thereto, 'Federal Copyright Fee," which fee represents an unauthorized change in rate for basic service. Adopted by the Council of the City of Virginia Beach, virginia, on the 6th day of April, 1983. RMB/re (RES.3) -3- -10- ITEM #19718 Upon motion by Councilman Baum, City Council adjourned at 7:30 p.m. Rtith Hodg@ Smith, CMC Mayor Loui v R. Jones City Clerk City of Virginia Beach, Virginia 6 April 1983/Special Meeting dmh