Laserfiche WebLink
6 <br />resolution before Council will put Adelphia on fo rmal notice that they are in violation of <br />their franchise agreement. <br /> <br /> Ms. Linda Peacock, Assistant City Manager, said that the City's consultants have <br />repeatedly requested data from Adelphia regarding the advertising revenue, but has had <br />to rely on nation al data averages in order to complete the audit. Using this information, <br />the consultant has determined that Adelphia owes the City $80,968 in unpaid franchise <br />fee payments and related late fees and interest. Ms. Peacock said the if Council approves <br />the r esolution, Adelphia has 20 days to cure the violation. If Adelphia disputes the <br />violation, it may appeal to City Council. <br /> <br /> Responding to a question from Mr. Schilling, Ms. Peacock said that the dispute is <br />over the form in which the information is provide d, and includes the availability of <br />accurate subscriber data and regional expense allocation. <br /> <br /> Responding to questions from Mr. Schilling about the security fund, Ms. Peacock <br />said that the penalty will be $100 per day, and the original security fund amou nted to <br />$25,000, though she does not know the current amount in the fund. <br /> <br /> Mr. Caravati, a member of the franchise study committee, noted that the City's <br />consultant and staff attorneys supports this move. <br /> <br /> Mr. Lynch said that in reading letters between A delphia and the consultant, it <br />appears that Adelphia's response to the request for information was that it would take too <br />much staff time to provide. Given the amount of money involved, he said he does not <br />know why Adelphia would not want to make the effo rt. <br /> <br /> Mr. Lon Carruth, General Manager of Adelphia, said there is a tremendous <br />discrepancy between the advertising figure used by Adelphia and the consultant. Mr. <br />Carruth said that while he was not present, he understands that the consultant had agreed <br />in a telephone conversation to accept the information in a consolidated form. Mr. Carruth <br />said the feeling is that the consultant is holding Adelphia to a higher standard than what is <br />required in other localities. <br /> <br /> Mr. Caravati made a motion to approve the resolution. <br /> <br />Ms. Richards, also a member of the franchise study committee, seconded the <br />motion. She said that the consultant has a national reputation, and has repeatedly asked <br />for information from Adelphia that was not forthcoming. Ms. Richards said in the <br />absence of the information from Adelphia, the consultant had to use national averages. <br />She said she did not see any other alternative other than using these estimates. <br /> <br />Mr. Caravati said the intent of the resolution is to turn the friction with Adelp hia <br />into traction. He said he thinks the request to Adelphia was reasonable. <br /> <br />The resolution was approved by the following vote. Ayes: Mr. Caravati, Mr. <br />Cox, Mr. Lynch, Ms. Richards, Mr. Schilling. Noes: None. <br /> <br />WHEREAS <br /> , on or about May 28, 1992, the C ity of Charlottesville, Virginia <br />(“City”) granted a Cable Television Franchise Ordinance (“Franchise”) to Multi - Channel <br /> <br />Cable TV Company (“MCCTV”); and <br />WHEREAS <br /> , MCCTV’s rights under the City’s Franchise were transferred and <br />assigned to Adelphia Communica tions (“Adelphia”), and City consented to and approved <br />of said transfer and assignment; and <br />WHEREAS <br /> , Section 10.01(A) of the Franchise provides that Adelphia shall pay <br />to the City a Franchise Fee equal to five percent of its gross revenues; and <br />WHEREAS <br /> , Section 10.01(E) of the Franchise provides that in the event any <br />payment is not made on the due date, simple interest on the amount due shall accrue from <br />such date at the annual rate of twelve percent; <br />