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HomeMy Public PortalAbout1980_04_09 MINUTES OF REGULAR MEETING OF LEESBURG TOWN COUNCIL, PUBLIC HEARING ON SYCOLIN PARTNERSHIP REZONING AND PUBLIC HEARING ON 18 9 COMMUNITY DEVELOPMENT APPLICATION, APRIL 9 , 1980 . O A regular meeting of the Leesburg Town Council was held in the Council Chambers, 10 West Loudoun Street, Leesburg, Virginia, on April 9 , 1980 at 7 : 30 P.M. The meeting was called to order by the Mayor, with the invocation by Mr. Tolbert, and followed with the Salute to the Flag led by Mr. Hill . Present were : Mayor Kenneth B . Rollins , Councilmember.s Glen P. Cole, Stanley D. Herrell, Jr. , G. Dewey Hill, Jr. , Marylou Hill , Walter F. Murray and John W. Tolbert, Jr. ; also Town Manager John Niccolls , Assistant Manager Jeffrey H. Minor, Director of Engineering Andrew G. Shope and Town Attorney George M. Martin. The minutes of the regular meeting of March 26, 1980 were ap- proved as written. PUBLIC HEARING ON SYCOLIN PARTNERSHIP REZONING A public hearing was held on the Sycolin Partnership rezoning . Mayor Rollins recognized Mr. E. William Chapman, attorneyrepresent- ing the Petitioner, who stated that they are seeking the rezoning of 69 acres out of a parent tract of 95 acres - the old Finneran prop- CO erty located at the southwest corner of Sycolin Road and the Lees- 0O burg By-Pass . The Planning Commission has given a favorable N recom- mendation for rezoning this 69 acres from R-3 to B-2 zoning. This is consistent with the Revised Master Plan of the Town of Leesburg, w which shows this land designated basically for light industrial use. Q The principals in this rezoning are J. Lynn Cornwell, Inc. and Ca- Q toctin Land Company, composed of J. Lynn Cornwell, A. C. Echols, Fred Hetzel and Brewster Cornwell. Most of the engineering work is being done by DeLashmutt Associates, with the architectural work and design being done by Arnold Kronstadt of Collins and Kronstadt of D.C. The property is currently zoned R-3 and the 69 acres would yield approximately 550 additional town houses. They have contacted the town house associations adjoining this property and have talked with Mr. Niccolls, Mr. Forbes and Mr. ' Shope concerning the land use plan proposed. Development will be staged over a 10 to 15 year period. Availability fees are calculated to be $1, 200, 000 , assuming development is consistent with the Land Use Plan. In addition, annual revenue will be some- where around $75, 000. If developed as proposed, $100 , 000 worth of real estate taxes would be generated, and this does not include any of the associated business taxes,: professional license taxes, personal property taxes, etc. At the same time, there would not be a comparable increase in service demands as there would be if it were developed according to the current R-3 zoning. He and Mr. Niccolls considered several different comments that came before the Planning Commission and recommendations of the staff. ,:Prior to adoption of the "proffer" ordinance, they indicated a will- ingness to proffer certain things , which Seemed .to be satisfactory to Mr. Niccolls and the Planning Commission. The' four elements are (1) a banana buffer zone between the existing town houses and their proposed commercial and industrial use; (2) a limitation on their non-residential land use on a percentage basis; ( 3) an agree- ment to adhere to certain guidelines set forth by the Town Manager concerning a storm drainage problem that exists on Harrison Street and (4) a dedication of land for future widening of certain road- ways . It is felt the exact language of the proffer could wait until the public hearing tonight, but it must be ironed out prior to the time the Council takes action. Mr. Arnold Kronstadt exhibited and explained the actual pro- posed land use for this property, pointing out that it is bounded on the north by the flood plain of the Tuscarora Creek; primarily B-2 to the east; a narrow strip of land that abuts the by-pass on the south and R-2 and B-2 to the west. To the northwest it is bounded by Virginia Knolls Subdivision - this is the area for which they are not requesting rezoning. The use of this property is to provide a logical planning relationship so that residential abuts residential. This has been extended to provide housing for the elderly. Abutting this, it is planned to have commercial town houses for professional offices . The density would probably be about 5 to 6 to the acre - Virginia Knolls is about 8 . Ground ' coverage would be approximately 11 percent. A high quality planned MINUTES OF APRIL 9, 1980 MEETING. 190office park is proposed - a retail complex and a conference center off of Sycolin Road and the By-Pass - this would serve as a responsible buffer. The scale is limited to three stories in height, with the majority proposed for two stories . It is felt that the relationship of each of these areas to that adjoining it is good. From the mar- ket viewpoint, there is four times more office space going up than in D. C. and D.C. is experiencing its greatest office boom, so there is a need for high quality office space. Its location off of the By-Pass and its site configuration allow for this kind of opportunity for development. It is felt that the low-key prestigious image will serve as a decided asset to the Town - it is felt this will become a landmark. The number of jobs this will create and the increased revenues in taxes is most inportant. There will be an entrance off of Sycolin Road - a gracious entrance with paving and flanked by natural ground cover and existing trees leading up to the Mall , which is open and has two major anchor tenants and other small shops. (He exhibited a drawing of the Mall) . The shopping center will be on approximately 10 acres, with about 80 , 000 square feet of commercial space and parking for about 400 cars . This will be the first phase of development. The church-sponsored housing for the elderly will be located between the commercial and the town house development and may qualify for the second phase because of its proximity to the shopping center and the needs of the elderly. There will be 150 to 200 dwelling units on a 10- acre site, with parking provided for about 100 cars . The pro- fessional town house offices will be individually owned and has a low density in keeping with the general characteristics. The office park is intended for research and development of industry and other related uses. The conference center will be on a 10- acre tract and will be the last to be developed. The entire center is planned to have good relations of one land use to a- nother. This is an excellent site for this development and the plan represents the best use for this land. Mr. Peter Plasmier, President of the Virginia Knolls Neighbor- hood Association, speaking in opposition, said the plans for this Center are beautiful , but they (members of the Association) are torn between the fact that sooner or later there will be 600 to 800 town houses adjacent to their area or there will be a develop- ment such as this . Such a center would. probably be fvery bene- ficial to their development, but they are concerned about the use of Harrison Street as a minor access to this development. This street is not designed for any kind of commercial traffic - it barely handles the residential traffic now. At the Planning Commission hearing, it was said that there would be approximately 83 cars per day using Harrison Street. They are concerned as to whether this full plan will be carried out over a 15 to 20 year period - they have to be very careful in their development and aware as to the values of their property. Also, there are a lot of children in this area and they will have to be re-educated concerning the traffic. Harrison Street has not been mentioned this evening - is this use still plannned and how did they account for the 83 vehicles? What kind of traffic would this be? Mr. Niccolls said there is no access between existing Harrison Street and the site proposed for rezoning. However, the extension of Virginia Knolls Subdivision calls for the extension of Harrison Street in the future. This would then provide a tie between this proposed commercial development and Catoctin Circle. Unless they acquire the remaining land in Virginia Knolls and construct the road, they would not automatically have this access. He believed the petitioners have considered whether or not the acquisition of this property would be to their advantage. Mrs . Marilyn Simpson, a resident of the community with small children, said some of the homes are only 20 feet from the curb of Harrison Street. There is no way there would be only 83 cars to use this street - professional businesses would have cars and those of their customers and they would have to come out somewhere. Would it be possible, if the suggested buffer zone is not developed, for Harrison Street to be stopped there and access to the commer- cial area and other proposed areas to be through the land proposed for rezoning? 191 MINUTES OF APRIL 9 , 1980 MEETING. Mr. Chapman said that, after discussion with Town staff mem- bers, this potential extension of Harrison Street was added, pri- marily to provide an alternate access for emergency vehicles and to provide the people in Virginia Knolls and Brandon access to this proposed portion of land. .They did not plan for a through street and that is one of the reasons the Center sits where it is - in order to keep people from going through some of the property . They provided Mr. Shope a report by their traffic engineer, the conclusions being that, under this proposed land use, there will be no substantial adverse impact on Harrison Street. In fact, the people who are most likely to come through 111 this property will probably be those living in the Virginia Knolls-Brandon section. Mayor Rollins asked where it is proposed to locate Harrison Street? Mr. Chapman said it comes to a "T" at the shopping center and will not be a direct route to Sycolin Road. Mayor Rollins felt Harrison is a major thoroughfare and should go on out to Sycolin Road. Mr. Chapman said it is not shown on the town Master Plan. He felt this should be considered in the site plan stage. Mayor Rollins agreed with this . Mr. Tolbert asked where the "83 cars" came from? Mr. Chapman explained that this was a mistake on his part at the Planning Com- mission hearing, but this has been clarified in the traffic report filed with Mr . Shope . Mayor Rollins asked how much chance there is that the property will be developed in accordance with the brochure? Mr. Chapman said it is the intention of his clients to do this unless the economy gets substantially worse . Mr. Herrell asked if this property would go back to its original zoning if not developed as proffered? Mr. Chapman said this is not true . Mr. Niccolls said this was contained in the packet and will be referred to the Finance and Administration committee. Mr. Murray said if there are 700 new town houses, they would need a new school . Mr. Herrell felt this is a much better plan than 700 new houses - he understood they were proffering this with the idea that it would not change hands fifty times . Mr. Chapman said the proffer would be a covenant running with the land and would be maintained in the Zoning Administrator ' s office. Mr. Hill asked if they are using the housing for the elderly as a buffer? Mr. Chapman said "Yes . " Mr . Hill said the second part of the proffer proposes that not less than one-half will be devoted to non-residential use. How would this-be stated in the proffer? Mr. Chapman said the language for this aspect of the proffer is still to be worked out. This figure came out of lengthy discussions with Town staff members in terms of ability to commit themselves to a market condition 10 to 15 years from now. Mr . Niccolls said this does not neces- sarily represent an agreement on what he would recommend by way of conditions to this zoning. They had two meetings on what the proffer conditions might be, however, the applicant was very ada- mant that he would not proffer conditions for some areas .he had hoped to receive proffers for. In his memorandum of January 3 to the Planning Commission, he set out some of the problem areas . Concerning non-residential uses, the Zoning Ordinance permits residential uses in the B-2 zone - Loudoun House, Leesburg Manor, Leesburg Gardens, Heritage Square and other major apartments are in a B-2 zone, permitting as many as 16 units to the acre . His concern was that this could be rezoned to B-2 uses in the hopes of having a broader commercial base, shopping center, tourist cen- ter, hotel-motel en-ter, hotel-motel complexes and conference center with another major apartment center in Leesburg. His suggestion was that conditions be imposed to limit to some reasonable number the number of apart- ments to be put on this site . This information is in Council ' s packet. Mr. Hill hoped the proffer would tie it down to the pro- posed plan. He would be in favor of this rezoning if the proffer would do this . He asked what they would propose to do on Sycolin Road other than dedicate the land? Mr. Chapman said this is all the Highway Department canirequire us to docunder State law. Does this then mean the Town would have to build the dual-lane highway recom- mended by the State? Mr. Chapman said this is not necessarily true but his clients are not going to commit themselves to build this at this point. This would not be part of the proffer, other than dedi- cating the land. The traffic analysis indicates that those people going out onto Sycolin Road will turn right to the by-pass - traffic 192 MINUTES OF APRIL 9 , 1980 MEETING. heading back would be very limited. Mayor Rollins declared this public hearing closed. He re- ferred it to the Finance and Administration Committee for considera- tion of the comments made tonight, to be reported back and to be voted on at Council ' s next session. PUBLIC HEARING ON COMMUNITY DEVELOPMENT SINGLE PURPOSE GRANT APPLICATION. Mayor Rollins opened a public hearing on the above. There was no-one to speak either for or against this application. The Chair declared this hearing closed. PETITIONERS AND COMMUNICATIONS : • Mr. Charles Bos addressed Council concerning a proposed reso- lution to lease the log cabin to the Chamber of Commerce. Although the Chamber ' s proposal is excellent, there are several other people concerned that there might be other uses of the cabin that Council might want to discuss . As a member of a committee last year con- cerning the finishing of the cabin and the use of it when finished, it was their feeling that it would be nice to have a silversmith or some sort of crafts operation. He urged Council to postpone action on this tonight and allow other groups to submit proposals for its use. The Restoration Society has put a lot of money into this and they are concerned as to its use. He would like to see the cabin open over week-ends and some display . There could be lots of problems with this and someone would be needed to take care of the property . Mr. Hill said he had worked with Mrs. Rey- noldson this project (he publicly thanked her for her efforts on this project) and the opportunity for someone to solicit the use of it has always been there. There has never been a "down to earth" proposition such as the Chamber has presented. His thought was to restore the cabin as it was years ago - not to try to locate a crafts dealer. Mr.. Bos said Leesburg looks better everyday inso- far as the -downtown section is concerned and the cabin will pro- mote this look. He would like to see several sources considered. He, personally, would prefer a silversmith or some craft in there. .Ms . Joan Kilcourse, representing a group of independent crafts- people, read their proposal for the use of this building. They pro- pose to lease the cabin from June 1 , 1980 and ending May 31, 1981 for the sum of $1, 920, payable in monthly installments of $160 . 00 , all utilities to be paid by the group. They request an option to renew on a yearly basis until 1985. They would propose to demon- strate quilting and weaving, as a place of sales and supplying in- formation on 18th century crafts . They would like to keep the cabin open every month, with the exception of January and February. They. would be paying rent for those two months. Ms . Kitty Rose , a member of the group, said they would like to have the hours run concurrently with the hours of the Museum. Since this would be the No. 1 spot on the Walking Tour, they could tell them about the building, show them their crafts and have visit- ing craft demonstrators . They considered having the building open week-ends only during January and February. Ms. Kilcourse added that they would like a period of time to see how it goes . They would have weavers, quilters, a potter, an artist and would like to have a silversmith. They would also like to take articles on consignment from others who are not members of the group. They plan to incorporate. Each person would take one day a week at the shop. Mr. Hill asked why they did not come to Council a month ago? The reply was that they were not aware of it. Mr. Hill said it bothers him that they are $10 . 00 more per month than the Chamber. "It is pretty easy to run a horse after the gate is open. " The Chamber took it upon themselves to make the offer and now, suddenly, we are getting more interest in it. The log cabin has been here and no interest has been generated until the Chamber approaches the Council. Ms . Kilcourse said they were just suddenly aware that it would be available. This group met in January and discussed this, they were searching for place where they could demonstrate and sell their crafts . 193 MINUTES OF APRIL 9 , 1980 MEETING. Mr. Phillip Brownrigg felt Mr. Hill was a little "worked up" that no-one but the Chamber of Commerce expressed interest. It has not been at all obvious to the public that this would be a place that a commercial enterprise could rent. It looks like just any other restoration project. With regard to the fact that the town has paid for the restoration, all discussions with the architect were predicated on the development of the building and restoration to be used in a craft, especially a silversmith, but, if one is not available, in some other crafts . The Chamber had a much better opportunity to know about it. Ms . Helen Gray, also a member of the group, asked if the building has been advertised in any way? Mr. Murray said he would venture to say it would go for more than $160 .00 a month . It has not been advertised. She then asked how anyone would know about it? Ms . Jan Myers of the White Parlour said that, in terms of the business community, another office on the main street would not benefit them as much as a craft type operation - something to pull the people to the business area, plus there would be the benefit of sales tax from such an operation. PROPOSED ORDINANCE AMENDING THE ZONING MAP FOR JOHN H. COOK, ET UX. A proposed ordinance amending the Zoning Map in accordance with Application #ZM-27 by John H . Cook, III and Agnes diZerega Cook was read by the Clerk. Mayor Rollins said Mrs . Herbert Ingram called him concerning the fact that she and her husband were not notified about this rezoning in accordance with the ordinance . They were not notified because this entire property is not the subject of the rezoning. Only 27 ,000 square feet, where the house and the carriage house are located, is to be re- zoned. This property does not adjoin them - this is why they re- ceived no notice. Mrs . Ingram asked if anyone received notice of this? Dr. Gates was notified as a courtesy, but it does not adjoin him either. A public hearing has been held, so the record is closed, however, he will allow them to speak as petitioners . Mr. Herbert Ingram, a resident of 6 S . Morven Park Road, said his property adjoins the Cook property and they have a full view of the proposed roadway and the farm. He did not believe the proffer changes the fact that this is a spot rezoning - it does not comply with the Town ' s Comprehensive Plan. It is not his in- tent to deny the Cooks the use of their property, but it should comply with this Plan. There is enough commercially zoned prop- erty in the town to fill the needs of the community. It has been indicated that the property where the house is located is to be rezoned. Will this be a public roadway through the property? And will it be developed in accordance with State and Town regu- lations? Mayor Rollins said this will be a private road - it will not be maintained by either the State or the Town. Mr. Ingram asked why he needs an office in his home when he will be at the hospital most of the time? Mr. Hill said he is not an advocate of spot zoning - Dr. Cook could use this as presently zoned for his office, employing one member of the household. To what better use could this be put? Mr. Ingram suggested that it could be designated a historic site and leave it there as a memento. Mr. Hill said it could be developed into more single-family dwellings - would this be better? Mr. Ingram said they went through all this two years ago when Mr. diZerega proposed to build a large number of town houses on the so-called farm. Mrs . Hill said this petition was withdrawn by Mr . diZerega. Mr. Hill asked Mr. Ingram if this would really bother him with the proffer - he would have to stick to it? Mr. Ingram said it would - there are vacancies in medical buildingsthat he could use for an office. He proposes to expand later and build a 21 story building. He felt this zoning should be denied. 194 MINUTES CF' APRIL 9 , 1980 MEETING Dr. John Cook, co-petitioner in this application, said he will be glad to answer any questions Council might have. Mr. Hill said Mr. Ingram indicated that he ( Dr. Cook) might put a nursing home there. Dr. Cook said he does not intend to do this . Mr. Hill asked if he intends a facility where he would keep patients overnight? The answer was "no. " Mr. Cole asked if this is to be a medical office or offices? Dr. Cook said he wants it there for his convenience - it is also close to the hospital . As Loudoun County grows , it might be too much for one person - then he would like to have a partner. Mr. Herrell asked how many patients three doctors and three or four nurses would generate in this facility in a day? Dr. Cook said in a practice such as this , he would envision less than 20 patients per man per day - probably less than 60 people. Mr. Cole asked if the road off of Loudoun Street would be two-way? Dr. Cook said this is his driveway - the principal access would be off of Rock Spring Drive. Mr. Herrell said there are offices right next door to the hospital - that couldn 't be any closer. Dr. Cook said there are two reasons for this . His wife will be his office manager - his principal assistant. The Jackson Building has variable spare rentals - you can ' t expand in this building and it is saturated. Ingress and egress by way of Rock Spring Drive would be more convenient - it is a two-lane road and is contiguous to the property. Mayor Rollins asked about the work that is being done to the main house and the brick structure? Dr. Cook said this would be the kitchen to the house - they closed in the carriage house (this is the one proposed for the offices) in order to move articles from the house while it is being re- modeled. Mrs . Mary Ingram asked about the possibility of a 21 story building on the property? Dr. Cook said the carriagehouse now contains 700 square feet, which is sufficient office space for one physician . If he takes a partner, he would extend to the south and down the hill. The carriage house is 11 stories - as you extend down the hill , this would put a basement underneath it. This then would be the 21 stories - nothing would be higher than the carriage house. Mr. Mahan said, under the existing ordinance, it is possible to have a lawyer ' s office, a medical office and a residence in an R-1 district. This is basically what Dr. Cook is proposing. With the proffer, Dr. Cook would be restricted to the medical office and his own medical laboratory - it would not be possible to utilize this strip of land for some other purpose in the MC district - it is already consistent with what is in the R=1 district. It is not exactly like a home occupation in that it is not in the main residence and there will be one or more employees . He has no intention of more than a private medical office - it may never ex- ceed the existing size or structure. From the standpoint of the community, they have left R-1 zoning surrounding it; they have agreed, by this proffer, to comply with certain conditions, namely screening; they have agreed to come to the town for ap- proval of any signs , off-street parking, etc . The Planning Com- mission recognizes that we are dealing with an entirely different situation than when there was no proffer. . He explained the proposed plan to Mr. and Mrs . Ingram. Mr. Herrell asked if he agrees that this is spot zoning? Mr. Mahan said Yes, but he also recognizes the proffer ordinance. With these conditions, it would be per- mitted. You have to look at each property differently. He ex- plained on the plan the route of ingress and egress off of Rock Spring Drive. Mr. Hill asked if he thinks a proffer makes spot zoning a little more palatable? Mr. Mahan agreed, what they are proposing is compatible with what they have. With the proffer they can use it only for that purpose. A proffer would go with the land indefinitely. It could possibly be changed, but it would have to go through this same process. Mayor Rollins asked what type of buffer is anticipated? Mr. Mahan said probably pines or something of that type - the only thing that would need screening would be the parking area. There will be no change in the character of the property, other than some gravel for parking. MINUTES OF APRIL 9 , 1980 MEETING. On motion of Mr. Murray, seconded by Mayor Rollins, an 19`5 ordinance amending the Zoning Map to reflect the rezoning of 27, 175 square feet of land by John H. Cook, III and Agnes diZerega Cook, subject to the proffered conditions, was pro- posed. Mrs. Hill said the Planning Commission recommended this unanimously with the proffer. The ordinance was defeated by a vote of 5 to 2 : Aye : Councilman Murray and Mayor Rollins. Nay : Councilmembers Cole, Herrell, D. Hill, M. Hill and Tolbert. IIMANAGER 'S REPORT: (1) Mr. Niccolls called attention to the written Activity Report, as well as the Capital Projects Report for March. Council- members received last week a copy of the report from the Pitometer Associates on the water leak study. This has been helpful to the Public Works Department - they will be undertaking some of the recommendations over the next few months . Distributed tonight are replacement pages for Exhibit VII of the Proposed Budget. CO (2) The Public Works Department is constructing the other CO half of the Wirt Street curb and sidewalk project - they hope to N have this work completeJin a few weeks . ( 3) Evergreen Mill Well #3 is back in service after re- Q pairs at the pump manufacturer 's expense. Q (4) He is recommending an executive session later to con- sider a legal matter with Attorney Ben Jones . (5) The Activity Report describes some proposals that will be before the committees concerning Potter 's Field. (6) A spring issue of the Lamplighter is proposed and articles would be appreciated for inclusion in it. (7) Mr. Taylor has provided a list of current idle cash in- vestments, reporting that the town has earned $589 , 000 on 1979 bond funds. He estimates that another $90 , 000 to $100, 000 will be earned by the end of this fiscal year. COUNCILMEMBER INQUIRIES AND COMMENTS : Mr. Hill asked at what capacity Evergreen Mill Well #3 is operating. Mr. Niccolls assumed at its normal capacity. Mr. Cole said if the ditches on the Fairview storm drainage project are not going to be restored very soon, they should be filled in. Mr. Niccolls said the paving should be done in about three weeks, but he will ask the contractor to fill them in to- morrow. Mr. Cole also reported that Mr. Robert Cullen (who lives on Vinegar Hill) asked him if the sewer would be periodically cleaned with the new Vactor? Mr. Niccolls said the new root cutter is now in operation on the machine. This was run through this par- ticular line and removed roots they couldn 't touch with any other equipment. This line has problems and it has been placed on a schedule for routine maintenance. Mr. Cullen did have a loss . A crew member was sent to the scene and mistakenly diagnosed the problem as being on the property owner ' s side - the next morn- ing we ascertained that it was the main line sewer. It was promptly corrected but, in the meantime, his basement had re- ceived some backed-up sewage. An insurance report has been filed with AH&T. MAYOR'S REPORT : Mayor Rollins asked that someone contact Mr. Hough, who lives at 139 Belmont Drive, concerning his driveway entrance. This is a steep driveway and he drags his car. He put some ce- MINUTES OF APRIL 9, 1980 MEETING. 196 ment there to remedy this situation, but the town took it up. He asked why this was done- and asked that he be contacted to work out something to assist him. Mr. Niccolls said that, as a matter of policy, we try to avoid allowing property owners to fill in a gutter line - it disturbs the storm drainage pattern. He looked at it two weeks ago and it looked normal to him, how- ever, he will look at it again and talk to him. CABLEVISION Mayor Rollins asked for comments concerning the proposed ordinances on cablevision. The following persons addressed Council : Mr. Robert Sevila, attorney representing John Lewis of Mid- Atlantic Network p p oration of Winchester, one of the applicants for the franchise,/ they have been receiving input from Mr. Minor for several months now and have also provided him with some input. Mid-Atlantic has considerable experience in this field. Mr. Lewis has some comments on certain sections of the ordinance which refer to valuation of this franchise which, under the methods set forth, would not permit the Council to take into consideration the value of the franchise itself and the good will . This may inhibit the interest of prospective bidders in the system altogether. There are other provisions which make bidding less appealing - Sec . 5. 1-27 has been changed to require two fully equipped color studios, resulting in considerable expense to the franchisee. Mr. John Lewis said he would have some hesitancy in bidding with regard to these items . He is concerned that, as proposed, setting rates may be a problem and valuation of the franchise, in the event it might be sold, might also be a problem. Some of the provisions might be appropriate for a community larger than Leesburg. Mr. Hill asked if he is acquainted with the Cable Television Information Center? Mr. Lewis said Yes, but he thinks their use is more appropriate for a larger community and he doesn ' t agree with some of their suggestions . Each one has to be looked at carefully. Mr. Hill asked if he thinks they are an impartial group? Mr. Lewis said this depends on the observer - they favor municipalities. Mr. Hill asked how many subscribers they have in Winchester? Mr. Lewis said they have 6500, including the dense areas outside the city. Mr. Hill asked if the local channel is a popular one? Mr. Lewis said they have not made any surveys, but they average about 30 hours per month on local origination, covering council meetings, local church services and high school athletics . It is more of a problem than it is a benefit insofar as an operator is concerned. His concern is that the Town of Leesburg does not have the potential number of subscribers - the require- ments for color operation may be excessive . Mr. Woodrow Turner, representing Matrix Cable Tv System, said they have no comments other than that they know the Council, the committee and the staff have dealt for a long period of time with this matter and they feel this is as good an ordinance as can be possible. They would like the project to go to bid as soon as possible - the process has gone on long enough. Mr. Stephen Robin, representing Mr. Sutliff, has seen the revised ordinance and noted that several changes of not unsubstan- tial nature were made. They are ready to go to bid - he feels they have had a fair chance to offer input to the staff and the subcommittee. They would be agreeable to 45 days for the bid if Council should decide to change to that from the proposed 60 days. On motion of Mayor Rollins, seconded by Mr. Herrell, the fol- lowing three ordinances concerning cable television were proposed and unanimously adopted: 80-0-6 - ORDINANCE - ADDING A NEW CHAPTER TO THE TOWN CODE ESTAB- LISHING REGULATIONS AND PROCEDURES FOR AND CONTROL OF CABLE TELEVISION SYSTEMS AND THE GRANTING OF FRANCHISES. ORDAINED by the Council of the Town of Leesburg, Virginia, as follows : MINUTES OF APRIL 9 , 1980 MEETING. SECTION I . The Town Code is hereby amended by adding a 197 new chapter, to be numbered Chapter 5. 1, which shall read as follows : Chapter 5 . 1 CABLE TELEVISION REGULATION. Article I . General Provisions . Sec. 5 .1-1. This Chapter shall be known and may be cited as the "Cable Television Regulation" of the town . Sec. 5. 1-2 . Purpose. The purpose of this chapter is to provide for regula- tion and control of any cable television system operating in the town. Sec. 5 . 1-3 . Definitions . CDWhere used within this chapter, unless the context N clearly indicates otherwise, the following words and terms shall have the meaning indicated below: Q (a) "FCC" shall mean the Federal Communications Com- Q mission or its successor. (b) "Franchise" shall mean an authorization granted pursuant to this chapter and applicable state law in terms of a privilege, permit and license to construct, operate and maintain a cable television system within the town . Any such authorization, in whatever form granted, shall not include any license or permit required for the privi- lege of transacting and carrying on a business within the town as required by other ordinances and laws of the town. (c) "Franchisee" shall mean the person, firm or cor- poration granted a franchise by the town under the provisions of this chapter, and the lawful successor, transferee or assignee of said person, firm or corporation. (d) "Property of Franchisee" shall mean all property owned, installed or used within the town by a franchisee in the conduct of a cable television system business under the authority of a franchise granted pursuant to this chapter. (e) "Subscriber" shall mean any person or entity re- ceiving for any purpose any service of the cable television system including, but not limited to, the conventional cable television system service or retransmission of television broadcast, radio signals, franchisee ' s original cablecasting and the local government, education and public access channels and other services including, but not limited to, leasing of channels , data and facsimile transmission, pay television and police, fire and similar public service com- munication. ( f) "Cable Television system or systems" shall mean any facility which is operated to perform for hire, either in whole or in part, the service of receiving, amplifying, modifying or originating television, radio or other electri- cal signals for the purpose of transmitting or distributing such signals by wire, cable or other means to subscribing members of the public, except that this definition shall not include (1) any system which serves fewer than 20 sub- scribers or (2) any system which serves only residents of one or more contiguous apartment dwellings under common ownership, control or management, and commercial establish- ments located on the premises of such dwellings . MINUTES OF APRIL 9 , 1980 MEETING. 198 (g) "Signals, " whether distant, local radio, tele- vision or kinds of channels, such as Class I , II, III and IV, shall be given the meanings found in applicable FCC Rules and Regulations . (h) "Converter" shall mean an electronic device, which converts signals to a frequency not susceptible to interference within the television receiver of a sub- scriber and, by an appropriate channel selector, also permits a subscriber to view all signals delivered at designated dial locations. (i) "Monitoring" shall mean observing a one-way com- munications signal, or the absence of a signal, whether the signal is observed by visual or electronic means for any purpose whatsoever. ( j) "Pay Television" shall mean the delivery over the Cable Television System of video signals to subscribers for a fee or charge (over and above charge for basic ser- vice) on a per program, per channel or other subscription basis . (k) "Local origination channel" shall mean a channel which is programmed by the cable system and subject to its exclusive control. (1) "Cablecasting" shall mean originating programming over a cable television system. (m) "Town Manager" shall mean the manager of the town or an official authorized by him to administer the terms, provisions and regulations of this chapter. (n) "Earth Station" shall mean the electronic equip- ment and hardware necessary to receive signals from satel- lites . (o) "Franchise territory" shall mean all the area within the 'corporate :limits of. the Town of ,Leesburg ando any future extension thereof by annexation. Article II. General Franchise Provisions . Sec. 5. 1-4 . Grant of Franchise. Operation of a Cable Television System within the town shall be permitted only upon the application for and subsequent grant of a franchise under the terms of this chapter. Sec. 5. 1-5. Length of Franchise. The initial term of any franchise granted under this chapter shall be for a period of 15 years . An extension of the initial franchise term may be granted in accord- ance with Section 5. 1-15 of this chapter. Sec. 5. 1-6. Franchise not Exclusive. The right to use and occupy town streets for a cable television system shall not be exclusive, and the town re- serves the right to grant a similar use of said streets to any person, company, corporation or other entity at any time during the initial or subsequent period of any cable television franchise. Article III. Transfer or Assignment of a Franchise. Sec. 5. 1-7 . Certain Transfers or Assignments Prohibited. No transfer or assignment of a franchise shall be ap- proved or considered by the Town Council within two years of the effective date of the initial term of a franchise. MINUTES OF APRIL 9 , 1980 MEETING. 199 Sec. 5. 1-8 . Transfer or Assignments. (a) Except as otherwise provided, no franchise granted pursuant to this chapter shall be assigned or transferred, either in whole or in part, or leased, sublet or mortgaged in any manner, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person, either by the act of the company or by operation of law without the consent of the Town Coun- cil, which consent shall not unreasonably be withheld. The granting, giving or waiving of any one or more of such con- sents shall not render unnecessary any subsequent consent or consents . (b) The town specifically reserves the right, in de- termining whether or not to authorize a transfer under this section, to consider the entire price and/or consideration to be paid by any proposed transferee, including the alloca- tion of value for the franchise as it actually or potentially affects the rates to subscribers at that time or in the fu- ture. The town may also take into account the extent to which a proposed transfer may potentially cause, require or CO justify (in whole or in part) , a rate increase or request CO for rate increase. The town is specifically authorized to N deny, restrict or condition its authorization of any trans- fer on the grounds mentioned hereinabove or on any related grounds under which the town may at its sole option deter- mine. (c) The franchisee may pledge, mortgage, hypothecate or otherwise transfer, as may be required, an interest in the cable television system to any lender in order to ob- tain financing for the Cable Television System. Such trans- fer, pledge, mortgage or hypothecation may, if required by the lender, include the authority to sell the Cable Tele- vision System, subject to consent of the town council , upon mortgage default by the franchisee. Such approval shall not be unreasonably withheld. In this event, any such sale ap- proved will require the new owner to comply with all terms and conditions of this chapter as well as the original fran- chise agreement and franchise ordinance. Sec . 5. 1-9 . Sale or Transfer of Stock or other Ownership. One or more sales or transfers of stock or other owner- ship, by operation of law or otherwise, or creation of new stock, by which an aggregate of more than 10 percent of franchisee stock or other form of interest shall be vested in a party or parties who are non-stockholders or non-owners as of the effective date of the franchise, shall be an assign- ment within the meaning of this article. For the purpose of this section, stock ownership shall be determined in accord- ance with the principles set forth in Section 5 . 4-4 of the Internal Revenue Code of 1954 as the same existed on August 16, 1954 . Sec. 5 . 1-10 . Notice of Transfer or Assignment. A franchisee shall promptly notify the Town Manager of any proposed change in, or transfer of, or acquisition by I/ any other party of control of the franchise. For the pur- pose of determining whether it shall consent to such change, transfer or acquisition of control, the town may inquire into the qualifications of the prospective controlling party, and the franchisee shall assist the town in any such inquiry. In the event that the Town Council adopts a resolution deny- ing its consent and such change, transfer or acquisition of control has been effected, the Town Council may cancel the franchise unless control of the franchise is restored with- in 30 days to its status prior to the change, or to a status acceptable to the Town Council. Any mortgage, pledge or lease shall be subject and subordinate to the rights of the town under this chapter or otheer applicable law. MINUTES OF APRIL 9, 1980 MEETING. 200 Article IV. Termination and Renewal. Sec. 5. 1-11. Revocation. The Town Council reserves the right to revoke the franchise, and all rights and privileges pertaining there- to, in the event the franchisee violates any of the ma- terial provisions of this chapter, or is found to have practiced any fraud or deceit upon the town or the public; provided, however, that complaints by the public shall be considered pursuant to the provisions of Section 5 . 1-44 of this chapter. Prior to any revocation proceedings under this section, the franchisee shall be given 60 days ' notice in writing by certified mail , which notice shall state in detail the grounds upon which the town seeks revocation. If the material violation has not been remedied to the satisfaction of the town, the Town Council shall have the right to revoke said franchise, and all rights, privileges and license derived therefrom, forthwith by resolution. At the time any franchise has been so revoked, the Town Coun- cil may require the former franchisee to remove all wires, cables and all other equipment associated with the cable television franchise at its expense. Sec. 5. 1-12 . Foreclosure. Upon notice of the prospective foreclosure or other judicial sale of all or a substantial part of the system, or upon the termination of any lease covering all or a sub- stantial part of the system, the franchisee shall notify the Town Manager of such fact, and such notification shall be treated as a notification that a change in control of the franchisee has taken place, and the provisions of Ar- ticle III of this chapter entitled "Transfer or Assignment of the Franchise" shall apply. Sec. 5. 1-13. Reserved. Sec. 5 . 1-14 . Expiration. Twelve months preceding the expiration of the initial term of a franchise granted pursuant to this chapter, the town shall have the right, at its election, to : (a) renew or extend the franchise as provided in Section 5. 1-15 (b) invite new applicants for the franchise or (c) purchase the system. Sec. 5. 1-15. Renewal or extension. A franchise may be renewed or extended at the sole op- tion of the town for a period of five years . Renewal con- sideration shall include but not be limited to the reports prepared throughout the life of the franchise reviewing the system' s technical performance, the development of cable services, the cost of said services and a comparison of similar cable systems in other communities. The town retains the right to modify the terms of a franchise within the then applicable provisions of state law as a condition of any such renewal or extension. Sec. 5. 1-16 . Town purchase of system upon revocation or ex- piration. In the event that the town revokes a franchise, pursuant to appropriate provisions of this chapter, or upon the ex- piration of a franchise, the town shall have the right to purchase the cable system at a price not to exceed its then fair market value. The fair market value shall be determined by an independent accounting firm, selected by the franchisee MINUTES OF APRIL 9 , 1980 MEETING. 201 and the town, in accordance with generally accepted ap- praisal and accounting principles , except that any value attributable to the actual franchise right itself or to good will of the cable system shall be specifically ex- cluded. The cost of such appraisal shall be shared equally by the franchisee and the town. Sec. 5. 1-17 . Continuity of service mandatory. A franchisee shall be required to provide continuous service to all subscribers in return for payment of the established fee. If a franchisee overbuilds, rebuilds, modifies, sells the system or the town revokes, fails to renew a franchise or the franchise becomes void, a fran- chisee is required as part of its franchise to continue to operate the system until an orderly and lawful change of operation is effectuated. Under no circumstances shall this period of operation exceed six months from the date of occurrence of any of the above events . In the event a franchisee fails to operate the system for five consecutive days without prior approval of the Town Manager or the franchisee fails to continue operation on the occurrence CO of any of the events given in this section, the town or its CO agent shall have the right to operate the system until such N time that a new operator is selected. If the town is re- quired to fulfill this obligation for the franchisee, the franchisee shall reimburse the town for any costs or dam- ages that result from the franchisee ' s failure to operate Q the system as required. Sec. 5 . 1-18 . Eminent domain. Nothing herein shall be deemed or construed to impair or affect, in any way or to any extent, the right of the town to acquire the property of the franchisee through the exercise of the right of eminent domain, and nothing herein contained shall be construed to contract away or to modify or abridge, either for a term or in perpetuity, the town ' s right of eminent domain with respect to any public utility or franchise. ARTICLE V. Franchise Territory; Construction Timetable; Extension of Service. Sec. 5 . 1-19 . Franchise Territory. (a) The franchisee shall construct and operate at a minimum the initial Cable Television System so as to provide service through all parts of the franchise territory having a density of at least 60 residential dwelling units per mile of plant, or at the density submitted in the franchisee ' s cable television application, whichever is lower. The "initial" Cable Television System will be considered as all of the system included on the map submitted with the fran- chisee ' s application. (b) Extensions to the initial system and any exten- sions in any annexed areas shall be subject to the same density standards. At a minimum, the franchisee shall construct one mile of cable plant per year upon receipt of a notice to proceed from the manager. Notwithstanding the above, the franchisee shall not be required to commence construction in these areas until the initial Cable Tele- vision System is constructed. Sec. 5 . 1-20 . Construction Timetable. (a) The franchisee shall construct the necessary facili- ties to permit basic service reception capability, including construction of 20 percent of the cable distribution plant, within 18 months of the date of the franchise agreement. Within 90 days of the date of the franchise agreement, the franchisee shall submit a construction timetable detailing the location and geographic sequence of the construction of MINUTES OF APRIL 9, 1980 MEETING. 202 the head-end and distribution plant leading to basic ser- vice and special service capability for every dwelling unit within the town, subject to aforementioned density standards . (b) Within four years of the date of the franchise agreement, the franchisee shall have completely installed and have under operation a cable television -system pro- viding basic service and special service capability to all dwelling units within the franchiseterritory, sub- ject to density limitations provided herein. Capability shall be defined as the providing of basic services or special services to subscribers within sixty days of an application for either or both services, including satel- lite distributed programs. (c) Failure on the part of a franchisee to meet any of the requirements of this section shall be deemed a ma- terial violation of this chapter and subject franchisee to revocation procedures established in Section 5. 1-16 herein, unless said time is extended by the Town Council. Such extensions may or may not relieve the franchisee of the payment of penalties set out in Section 5. 1-49 at the sole option of the Town Council . (d) A franchisee shall register with the FCC and comply with all other filing requirements of Federal and State law within 60 days of its acceptance of the franchise. Sec. 5. 1-21. Interconnection. A franchisee may interconnect the system with any or all other cable television systems in the area if otherwise lawful and provided such other system agrees to the inter- connection. Interconnection of systems may be done by direct cable connection, microwave link, satellite or other appropriate method. (a) Upon receiving the directive of the town to inter- connect, the franchisee shall immediately initiate negotia- tions with the other affected cable television system or systems in order that costs may be shared equally for both construction and operation of the interconnection link. (b) The Town Council may grant reasonable extensions of time to interconnect or rescind its request to inter- connect upon petition by the franchisee to the Town Council. The Town Council shall grant the request if it finds that the franchisee has negotiated in good faith and the cost of interconnection would cause an unreasonable increase in sub- scriber rates. (c) No interconnection shall take place without prior approval of the Town Manager. A franchisee, in seeking ap proval for interconnection, shall demonstrate that all sig- nals to be interconnected will comply with FCC technical standards for all classes of signals and will result in a low level of distortion. (d) The franchisee shall cooperate with any intercon- nection corporation, regional interconnection authority, state or federal regulatory agency which may be hereafter established for the purpose of regulating, facilitating, financing or otherwise providing for the interconnection of cable television systems beyond the boundaries of the town. Article VI. Service Provisions . Sec. 5. 1-22 . Basic Subscriber Service. (a) At the time housedrop connections are available, the franchisee shall provide all subscribers who request 203 MINUTES OF APRIL 9 , 1980 MEETING. basic service with the minimum television signals estab- lished in Section 5. 1-28 of this chapter and one local origination channel designated for public access on a first come, nondiscriminatory basis . The public access channel will be available to public, educational, govern- mental and any other users . (b) The franchisee at its expense shall furnish upon request one connection for each public school, county and municipal office which is within the franchise territory not more than 250 feet from the franchisee's existing ser- vice facilities . Sec. 5. 1-23. Special services. At such time as subscriber service is first available, the franchisee, in addition to basic service, shall offer special services available at higher rates , which shall in- clude one or more channels offering pay TV and additional commercial satellite delivered channels. Sec. 5. 1-24 . Virginia Public Telecommunications Council . A franchisee shall also comply with all current and future requirements of the Virginia Public Telecommunica- tions Council. Sec. 5. 1-25. Reserved. Sec. 5. 1-26 . Local Origination Programming. Within 24 months from the date of a franchise agreement, a franchisee shall provide at its expense facilities and equipment necessary to originate local programming, provid- ing one local origination channel for that purpose. The franchisee of a Cable Television System with a minimum of 3000 subscribers shall cablecast a minimum of four hours of non-automated programming within every 24 hour period, unless a franchisee receives a waiver to this provision on an annual basis from the Town Council. Sec. 5. 1-27 . Studio Facilities. A franchisee shall provide a full color studio located within a five mile radius of the Town of Leesburg. The studio will be available to access cablecasters along with the services of technical and production staff to be pro- vided by the franchisee. A franchisee shall also provide mobile color equipment for its own use and that of local access users . The franchisee may lease a studio and fa- cilities from others to comply with this section. Fran- chise applicants will be evaluated on the basis of plans and rate schedules for production facilities which are most in the public interest. Rate schedules may include different rates for various classes of users . Article VII . Design and Construction Standards Sec. 5. 1-28 . Channel Capacity . A franchisee shall construct a Cable Television Sys- tem that shall have not less than 24 video channels or an equivalent amount of band width capacity, including any local origination franchisee-operated station which may also serve as the public access channel required by Sec- tion 5 . 1-22 of this chapter. Sec. 5. 1-29 . Overhead and Underground Construction. Construction of trunk, feeder and drop cable may be constructed overhead where utility poles now exist and electric or telephone lines or both are now overhead but, 204 MINUTES OF APRIL 9 , 1980 MEETING. where no overhead poles exist, all trunk, feeder and drop cable shall be constructed underground. Any installation above -.ground .shall -be considered as 'a ' special exceptiori �to Section 13-39 of the Town Code. Where present overhead utility poles , electric lines and telephone lines are moved from overhead to underground placement, all cable television distribution system cables located aboveground within the affected area shall be similarly moved and located under- ground at the same time and the cost of the movement of the cable shall be solely the obligation of the franchisee. Sec. 5. 1-30 . Two-way Capacity. The franchisee shall install a cable television system with a technical capacity for non-voice return communica- tions. The franchisee ' s development of Class IV uses shall coincide with the schedule submitted in the franchise ap- plication. Sec. 5. 1-31 . Emergency Requirements. The franchisee shall design and construct the cable television system to provide for an audio override of all channels simultaneously (except those involved in retrans- mission of television broadcast programming) , in the case of public emergencies . Sec. 5. 1-32 . System Design. Applicants for a franchise under this chapter will be required to submit the cable system design as a part of the franchise application process. The system design will be one of the factors evaluated during consideration of any franchise awarded. Sec. 5. 1-33. Construction Requirements and Safety Standards . (a) Methods of construction, installation and mainte- nance of the town 's cable television system shall comply with the National Electric Code 1975 (ANSI CI-1975) to the extent that such code is consistent with local law affecting the construction, installation and maintenance of electric supply and communications lines . (b) Any tower constructed for use in the cable televi- sion system shall comply with the standards contained in Structural Standards for Steel Antenna Towers and Antenna Supporting Structures, EIA Standards RS-222-A, as published by the Engineering Department of the Electronic Industries Association, 2001 Eye Street, N.W. , Washington, D.C. 20006 . (c) Installation and physical dimensions of any tower constructed for use in any cable television system shall comply with all appropriate Federal Aviation Agency regula- tions . Sec. 5. 1-34 . Construction, Supervision and Alteration after Construction. (a) A franchisee shall construct, operate and maintain the cable television system subject to the supervision of the town and in strict compliance with all laws, ordinances, rules and regulations affecting the system. (b) The cable television system, and all parts thereof, shall be subject to periodic inspection by the town. (c) No construction, reconstruction or relocation of the cable television system, or any part thereof, within the streets shall commence until written permits have been ob • - tained from the town. In any permit so issued, the town Director of Engineering or other officials authorized by the Town Manager may impose such conditions and regulations MINUTES OF APRIL 9 , 1980 MEETING. 205 as a condition of the granting of the same as are neces- sary for the purpose of protecting any structures in the streets and for the proper restoration of such streets and structures, and for the protection of the public and continuity of pedestrian and vehicular traffic. (d) The Town Council may, from time to time, issue such reasonable rules and regulations concerning the con- struction, operation and maintenance of the cable televi- sion system as are consistent with the provisions of this chapter and the franchise issued pursuant to this chapter. (e) The Town Council may require that any part or all of the cable television system should be improved or up- graded by the franchisee 'within a reasonable time there- after (including, without limitation, the increasing of channel capacity, the furnishing of improved equipment and the institution of two-way transmission) ; provided such improvement or upgrading of the system is found to be economically feasible. For the purpose of this sub- section, a finding of economic feasibility shall mean a finding that the capital costs to the franchisee of such CO improvement or upgrading can reasonably be amortized over CO the then remaining life of the franchise without substan- N tially affecting the franchisee ' s rate of return, or other measure of profitability agreed to by franchisee and the W town. C Q Sec. 5 . 1-35. Use of Public Property. (a) Should the grades or lines of the streets which the franchisee is hereby authorized to use and occupy be changed at any time during the term of the franchise, the franchisee shall, if necessary, at its own cost and expense, relocate or change its system so as to conform with such new grades or lines. (b) Any alteration to the water mains, sanitary sewer- age or storm drainage system or to any town, state or other public facilities in the streets required on account of the presence of the cable television system in the streets shall be made at the sole expense of the franchisee. During any work on constructing, operating or maintaining of the system, the franchisee shall also, at its own expense, protect any and all existing structures belonging to the town or any other person. All work performed by the franchisee pur- suant to this section shall be done in the manner prescribed by the Town. Sec. 5. 1-36 . Interference with Public Projects. Nothing in this ordinance shall be in preference or hindrance to the right of the town to perform any public works or public improvements of any description, and should the system in any way interfere with the construction, main- tenance or repair of such public works or public improvements, a franchisee shall, at its own cost and expense, protect or relocate its system, or part thereof, as reasonably directed by the town. Sec. 5. 1-37 . Technical Standards. The franchisee shall comply with all existing and fu- ture requirements of the FCC or its successor ' s governing technical standards . The town reserves the right to adopt its own technical standards when permitted to do so. Article VIII . Maintenance, Operations and Accounting Records . Sec. 5. 1-38. Books and Records . (a) The franchisee shall maintain separate accounting records , in accordance with generally accepted accounting MINUTES OF APRIL 9 , 1980 MEETING. 200 practices, of all its operations and transactions within the town. The town shall have the right to inspect dur- ing normal business hours , all books, records, maps, plans, financial statements and other like materials of the fran- chise which relate to its operation within the town, includ- ing expenses attributed to the franchisee by any parent cor- poration. All such information received by the town shall remain confidential insofar as permitted by the Virginia Freedom of Information Act, as now or hereinafter amended. The requirements of this section shall be considered a ma- terial provision of this chapter. (b) The franchisee shall maintain a file of records open to public inspection in accordance with applicable FCC rules and regulations or, if none exist, in accordance with rules and regulations adopted by the Town Council . Sec. 5. 1-39 . Reports. (a) Annual Report. Within 90 days of the close of its fiscal year, the franchisee shall submit a written report to the Town Council, which shall include: (1) A summary of the previous year ' s activities and development of the cable television system, including but not limited to services begun or dropped and subscribers gained or lost; (2) A summary of complaints, identifying both number and nature of the complaints received and an expla- nation of the disposition; ( 3) A financial statement including balance sheet, statement of income and expenditures, and statement of changes in financial position, which the Town Manager may require to be an audited statement by giving notice to the franchisee 60 days prior to the deadline for sub- mittal of the written report. (4) A projected financial statement including all of the above information, along with a capital program and projected new services for the next two years ; (5) A reconciliation between previously pro- jected estimates and actual audited figures; (6) A list of all stockholders with a three percent or more interest in the franchise, or, if appli- cable, its parent corporation, during the fiscal year and a list of all officers and members of the Board of Directors of the franchisee and, if applicable, a list of all officers of the parent corporation of the fran- chisee, and (7) Such other information as the Town Manager or the Town Council may reasonably direct. (b) Annual Plant Survey Report. A franchisee shall prepare and submit, by August 31 of each year, a complete survey of its plant and a full report thereon to the Town Council. The purpose of the report shall be to assure the town that the technical standards of the FCC and other ap- plicable standards established herein are being maintained. The plant survey shall include appropriate electronic mea- surements and shall be conducted in conformance with such requirements, including supervision, as the Town Manager may require. (c) Income Tax Reports. In addition, a franchisee shall furnish to the Town Manager, within ten days after filing, a true copy of its federal income tax return. MINUTES OF APRIL 9 , 1980 MEETING. Sec. 5. 1-40 . Service Requirements . 207 (a) A franchisee shall comply with all technical standards and specifications established by the FCC through- out the entire period of its franchise. (b) A franchisee shall render efficient service, make repairs promptly and interrupt the service only for good cause and for the shortest time possible. Such interrup- tions, insofar as possible, will be preceded by notice and shall occur during periods of minimum use of the system. (c) A franchisee shall maintain its principal office in the town, which shall be open during all usual business hours, having a publicly listed telephone and be so oper- ated that complaints and requests for repairs or adjust- ments may be received and acted upon on a 24-hour basis. Article IX. Rates; Complaints; Proceedings . Sec. 5. 1-41 . Filing and Publication of Rates, Rules and Regulations. COA franchisee shall publish and file with the Town NManager schedules of all rates and charges for all ser- vices offered to the subscribing public . Such schedules shall plainly state the cost of each particular service Q or combination of services, together with all rules, regu- Q lations and requirements affecting the installation, main- tenance and provision of service or which otherwise affect the quality or cost of such service to the subscriber. The manner and form by which such schedules are published shall be reviewed and approved by the Town Manager. Copies of all such schedules shall be available to the public upon pay- ment of a reasonable fee equal to the cost of reproduction. Sec. 5. 1-42 . Discriminatory or Preferential Practices Pro- hibited. The franchisee shall not, in its rates or charges, or in making available the services or facilities of its system, or in its rules or regulations, or in any other respect, make or grant a preference or advantage to any subscriber or potential user of the cable television system, or to any user or potential user of the cable television system; and shall not subject any such person to any prejudice or dis- advantage. This provision shall not be deemed to prohibit promotional campaigns to stimulate subscriptions to the cable television system or other legitimate uses thereof. Notwithstanding the aforementioned, this provision shall not prohibit the franchisee 's establishment of special rates or charges for subscribers eligible and participating in the town ' s real estate tax relief for the elderly program or handicapped persons, as defined in Section 46 . 1-104 .1 (al) of the Code of Virginia. Sec. 5. 1-43 . Rates. (a) A franchisee ' s initial rates for both basic sub- scriber service and special services shall not exceed the rates submitted in the franchisee ' s application as a part of its proposal for a Cable Television System franchise for a minimum period of one year. Thereafter, future rate in- creases throughout the term of the franchise shall be governed by the procedures set out in the franchise agreement between the town and franchisee. Calculation of the time period that initial rates are valid will begin following the first sub- scriber connection. / (b) Notwithstanding the above, the town reserves the right to regulate cable installation and service fees for all cable services upon the finding that monthly service MINUTES OF APRIL 9 , 1980 MEETING. 208 charges for one or more services or one or more instal- lation charges exceeds by ten percent the average charges in use by cable firms in other jurisdictions within a 50 mile radius of Leesburg. Upon notice of this finding to the franchiseee, the franchisee shall reduce the offending charges to within the ten percent limit prescribed within 30 days from said notice, or the town shall implement permanent rate regulation pro- cedures for the life of the franchise. The town shall have the sole authority to develop procedures and method- ology for rate regulation to insure reasonable rate regu- lation and a fair return on investment by the franchisee in the cable system. In determining a franchisee ' s rate base for reviewing proposed rate increases, the town shall not in any event take into account any value beyond; the , '. net book value of a cable plant then in existence and de- voted to cable television service . The regulation pro- cedure at a minimum shall include hearings and 60 days ' notice from the effective date of any rate increase re- quested. Sec. 5 . 1-44 . Complaints . (a) Complaints by any subscriber may be filed with the franchisee in writing or delivered to the franchisee orally in person or by telephone . (b) Any complaints received from subscribers shall be investigated by the franchisee and acted upon as soon as possible, within one business day of the receipt. (c) The franchisee shall keep a maintenance service log that will indicate the nature of each complaint, the name of the employee of the franchisee receiving the com- plaint, the date and time it was received, the disposition of the complaint and time and date thereof. The log shall also indicate specific steps taken by the franchisee to remedy the complaint. This log shall be made available for inspection upon request by the Town Manager. (d) Notwithstanding the above, the franchisee shall advise the Town Manager in writing on a quarterly basis of all unresolved complaints . The nature and number of unresolved complaints shall be considered by the Town Council during any subsequent renegotiations for exten- sion of any cable television system franchise . Article X. General Financial and Insurance Provisions . Sec. 5. 1-45. Franchise Fee . (a) As compensation for any franchise granted pur- suant to this chapter in consideration of permission to use the streets and public ways of the town for the con- struction, operation, system, the franchisee shall pay to the town an amount equal to three percent of the fran- chisee ' s gross annual receipts from all sources attributal to the operations of the franchise within the town, in- cluding but not limited to pay cable, advertising, leased access and any lump sum connection fees . (b) Notwithstanding any other provision of this ar- ticle, should FCC regulations be amended in the future to allow the town to receive a fee greater than. that pro- vided for herein, the percentage of gross receipts estab- lished in Subsection 5 . 1-44 (a) above shall increase to five percent effective January 1 in any year in which the cable television system has 3, 000 subscriber connections . (c) Payments to the town under this provision shall be computed quarterly, for the preceding quarter as of March 31, June 30 , September 30 and December 31 . Each MINUTES OF APRIL 9 , 1980 MEETING. quarterly payment shall be due and payable no later than 209 30 days after the applicable computation date. Each pay- ment shall be accompanied by a report showing the basis for the computation and such other relevant material as required by the Town Manager. (d) Acceptance of any payment by the town should not be construed as agreement that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as release of any claim for additional amounts payable to the town . All amounts paid. shall be subject to audit and recomputation by the town. In the event any such audit or recomputation results in additional revenue pay- able to the town, such amounts will be subject to a ten per- cent simple interest charge. (e) Nothing in this section shall be interpreted as relieving a franchisee of local taxes. Sec. 5. 1-47 . Application Fee. Each applicant for a franchise under this chapter shall CD submit a non-refundable filing fee in the amount of $1,000 CO which shall be payable to the Town of Leesburg, Virginia. N _ All such fees shall be credited to the general fund of the town for the purpose of investigation of franchise applica- tions and enforcement and administration of the provisions Q of this chapter. Not withstanding the above, the full a- Q mount of the franchise fee shall be returned to all appli- cants if no franchise is awarded. Sec. 5. 1-47 . Liability, Indemnification and Bonding. (a) Upon acceptance of any franchise under this chap- ter, the franchisee shall pay all damages and penalties which the town may legally be required to pay as a result of grant- ing the franchise. These damages or penalties shall include, but shall not be limited to, damages arising out of the in- stallation, operation or maintenance of the cable television system, whether or not any act or omission complained of is authorized, allowed or prohibited by this chapter. (b) Franchisee shall provide and pay for any legal de- fense of the town with regard to all actions mentioned above. (c) Franchisee shall maintain, throughout the term of its franchise, liability insurance in companies acceptable to the town sufficient to cover such indemnification, and naming as insured the town and the franchisee with minimum limits of $500 , 000 on account of bodily injuries to or death of one person, $1, 000 , 000 on account of bodily in- juries to or death of more than one person as a result of any one accident or disaster, and $500, 000 on account of damage to property, and it will further deposit the policy or policies of such insurance along with certificates there- for with the town within 30 days of execution of any fran- chise agreement. (d) Within 30 days of execution of a franchise agree- ment, a franchisee shall provide and maintain, as herein provided, a faithful performance corporate surety bond or other performance guarantee in a form approved by the town attorney, running to the town, in the penal sum of $100 , 000, payable to the town. The bond shall be released by the town in full upon the franchisee meeting the requirements of Sub- section 5 . 1-20 (b) herein. Sec. 5. 1-48 . Security Fund. Prior to execution of a franchise agreement, a franchisee shall deposit $5, 000 in an escrow account with the town Di- rector of Finance, to be held by the town and invested in accordance to Sec. 2-84 (b) of the Town Code, throughout MINUTES OF APRIL 9 , 1980 MEETING. 210 the initial and any subsequent term of a franchise. This fund will provide cash as security for the faithful per- formance by the franchisee of the provisions of this chap- ter and of its franchise relating to construction of this chapter and of its franchise relating to construction and compliance with all orders , permits and directions of any department of the town having jurisdiction over its acts or defaults . Within 30 days after notice to it that any amount has been withdrawn from the security fund deposit as provided herein, the franchisee shall deposit in such account a sum of money equal to the amount withdrawn . Sec. 5. 1-49 . Penalties. For violation of the provisions of this chapter, pen- alties shall be chargeable by the manager to the security fund unless corrected within 10 days of written notice thereof by certified mail to the franchisee as follows : (a) For failure to submit plans indicating expected dates of installation of various parts of the system; $25/day (b) . For failure to commence operations in accordance with requirements herein; $50/day (c) For failure to complete construction and installation of system as required; $50/day (d) For failure to supply data requested by town in connection with installation, construction, customers or financial reports ; $25/day (e) For failure to restore the security fund as required within the specified thirty days, the entire cash deposit remaining (if any) and the full amount of the performance bond shall be for- feited. $25/day The franchisee may request the manager exclude from the 10 day correction period delays equal to the time lost for acts of God, labor disputes, abnormal weather condi- tions, fires or other causes outside its control. Article CI . Administration. Sec. 5. 1-50 . Administration by Manager. The day to day regulation, enforcement and adminis- tration of any franchise granted under this chapter shall be the responsibility of the Town Manager. Sec. 5. 1-51 . Functions of the Town Manager. The Town Manager ' s authority and responsibilities with respect to a franchise granted pursuant to this chap- ter shall include the following : (a) To assist in the preparation of the invitation to bid for cable television system franchise; to estab- lish criteria for review and ranking of franchise appli- cations ; to review and screen applications for franchises and to make selection recommendations to the Council. (b) To monitor and enforce all aspects of the fran- chisee ' s performance in meeting all terms, provisions, re- quirements and construction schedules established in this chapter. (c) To advise and make recommendations to the Council on matters which may constitute grounds for revocation of a franchise in accordance with this chapter. MINUTES OF APRIL 9, 1980 MEETING. (d) To monitor and investigate where appropriate 211 complaints against the franchisee by any person. Article XI . Rights of Individuals Protected. Sec . 5 . 1-52 . Discriminatory Employment Practices Prohibited. Franchisees shall not deny service, access or otherwise discriminate against subscribers , channel users or general citizens on the basis of race, color, religion, national origin or sex. Franchisees shall strictly adhere to any equal employment opportunity requirements of the FCC. Franchisees shall comply with all other applicable fede- ral, state and town laws , and all executive and adminis- trative orders relating to nondiscrimination. Sec. 5. 1-53. Restrictions on Cable Monitoring. Except as otherwise provided by this section, the franchisee shall not monitor, or arrange for the monitor- ing, or permit any person, either expressed or implied through their knowledge, to monitor any subscriber outlet CO or receiver for any purpose whatsoever, without the specific written authorization of the subscriber being CO monitored, and other than to the extent so authorized by (V such subscriber. Any information gathered by such monitor- ing shall not be sold, given or otherwise transferred to any person not in the employ of the franchisee or the person Q supplying the service involved, provided that the fran- chisee may conduct such monitoring as may be reasonably necessary for (1) the maintenance and operation of the cable television system; and (2) the collection of data for the purpose of ascertaining viewer response to programming. Any data collected for the purpose of ascertaining viewer response to programming may be disseminated on an aggregate basis only and may not in any way reveal or indicate any information on individual subscribers. Sec. 5 . 1-54 . Privacy and Other Human Rights . The franchisee and the town shall maintain constant vigilance with regard to possible abuses of the right and privacy of other human rights of any subscriber, programmer or general citizen resulting from any device or signal as- sociated with the system. Sec. 5. 1-55. Permission of Property Owner Required. No cable, line, wire, amplifier, converter or other piece of equipment owned by a franchisee shall be installed by a franchisee without first securing the permission of the owner of any property or easement involved. If such permis- sion is later revoked, whether by the original or a subse- quent owner, the franchisee shall remove forthwith any of its equipment which is both visible and movable and promptly restore the property to its original condition at the fran- chisee 's expense . Sec. 5. 1-56 . Sale of Subscriber Lists Prohibited. A franchisee shall not sell, or otherwise make avail- able, lists of the names and addresses of its subscribers, without permission of the subscribers , to anyone other than authorized town officials for purposes of enforcing fran- chise provisions. Article XII . Miscellaneous Provisions. Sec . 5. 1-57 . Fraud. It shall be unlawful for any person to defraud or at- tempt to defraud any cable television system franchisee by attempting to obtain any service therefrom without payment MINUTES OF APRIL 9 , 1980 MEETING. 212 as described in Sec. 18. 2-187 . 1 of the Code of Virginia. Any person who violates this provision, if the value of service, credit or benefit procured is $100 or more, shall be guilty of a Class 6 Felony; or if the value be less than $100 shall be guilty of a Class 1 Misdemeanor, as penalties for such are set out in the Code of Virginia. Sec. 5. 1-58. No Recourse Against the Town. The franchisee shall have no recourse whatsoever against the town or its officials, boards, commissions, agents or employees for any loss, cost, expense or dam- age arising out of any provision or requirement of this chapter or because of the enforcement of this chapter, unless the same shall be caused by criminal acts or by willful or gross negligence. Sec. 5.1-59 . Official Name of Franchise. Any franchisee licensed to operate a cable television system within the town shall include the word "Leesburg" in the official name of the said firm or corporation so author- ized, upon the request of the town. Sec. 5. 1-60 . Extensions Outside Corporate Limits . (a) The franchisee shall not extend cable television service to residents outside the franchise terrirory until it has met the requirements of Section 5 . 1-20 (b) of this chapter. Where extensions of the Cable Television System are made outside the corporate limits of the town and con- nect to the Cable Television System' s headend, the monthly rate for basic service and special service to customers outside of town shall contain a $1. 00 surcharge which the franchisee shall pass directly through to the town on a quarterly basis . This fee reimburses the town for costs of administration and regulation of the Cable Television System. The franchisee ' s receipts from cable services out- side the corporate limits of the town shall be excluded from the gross annual receipts used to calculate the franchise fee. (b) For the purpose of determining the number of sub- scribers with respect to Sec. 5. 1-26 of this chapter, sub- scribers residing outside the town shall be included. SECTION II. This ordinance shall be in full force and effect from and after its passage. Aye : Councilmembers Cole, Herrell, D. Hill, M. Hill, Murray, Tolbert and Mayor Rollins. Nay : None. 80-0-7 - ORDINANCE - GRANTING TO ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE, RIGHT AND PRIVILEGE, UPON CERTAIN CONDITIONS, TO USE THE STREETS , ALLEYS AND OTHER PUBLIC PLACES OF THE TOWN OF LEESBURG, VIRGINIA, WITHIN ITS CORPORATE LIMITS, AS THE SAME NOW EXIST OR MAY BE HEREAFTER EXTENDED OR ALTERED, FOR THE PURPOSE OF PROVIDING A CABLE TELEVISION SERVICE AND SYSTEM WITHIN SAID CORPORATE LIMITS ORDAINED by the Council of the Town of Leesburg, Virginia, as follows : SECTION I. The right is hereby granted to , hereinafter referred to as "Grantee, " its successors and assigns, for the term and subject to the terms, provisions, conditions and limitations hereinafter stated, to use the streets , alleys and other public places of the Town of Leesburg, Virginia, hereinafter referred to as "Town, " and to acquire, erect, maintain and use, and if now erected or installed, to maintain and use posts, poles, MINUTES OF APRIL 9 , 1980 MEETING. wires, manholes, ducts, cables, conduits , electrical 213 conductors, fixtures, appliances , appurtenances and all other necessary apparatus in, under, over and • along the streets, alleys and public places of the Town as the same now exist or may be hereafter ex- tended or altered. SECTION II. The Grantee shall have the right to use, maintain and operate, subject to the provisions, terms, conditions and limitations prescribed in this franchise and subject to all the terms and provisions of the Cable Television Rules and Regulations , Chapter 5. 1 of the Town Code, and subject to the lawful exercise of the police power of the Town, the posts, poles, wires, manholes, ducts , cables, conduits , electrical conductors, fixtures, appliances, appurtenances and all other necessary apparatus erected, maintained and used in, under, over and along the streets , alleys and other public places of the Town on the day this franchise becomes in force and effect for the pur- pose of so providing a cable television service and system. SECTION III . The grantee shall have the right to erect, CO maintain and use such posts , poles , wires, manholes, ducts, cables, conduits, electrical conductors , fixtures, appli- CO ances, appurtenances and all other necessary apparatus in, (v under, over and along the streets, alleys and other public W places of the Town at such locations as are reasonably suit- able and convenient for the purpose of the Grantee and the Q Town subject to the terms, provisions, conditions and limi- tations hereinafter stated and the lawful exercise of the police power of the Town. SECTION IV. The Town reserves and shall have the right to require the Grantee to obtain the specific permission of the Town to locate, construct or erect any micro-wave tower, radio relay installation, television relay installation and all other apparatus and appliances appurtenant thereto in, on, under, over, above and along the streets , alleys and other public places of the Town and the Town further reserves and shall have the right to attach reasonable conditions to the granting of any such specific permission. The Town reserves and shall have the right to require the Grantee to obtain the specific permission of the Town to locate, construct or erect any of its property, including but not limited to posts, poles, wires, manholes, ducts, cables, conduits, electrical conductors , fixtures, ap- pliances and appurtenances that exceed in height or size that which are now in common use throughout the town in, on, under, over, above and along the streets , alleys and other public places of the Town and the Town further re- serves and shall have the right to attach reasonable con- ditions to the granting of any such specific permission. SECTION V. Nothing contained in this franchise shall be construed to exempt the Grantee from any tax, levy or assessment which is now or which may be hereafter author- ized by law. SECTION VI . The Grantee will maintain its property, includ- ing but not limited to posts, poles, wires, manholes , ducts , cables, conduits, electrical conductors, fixtures, appli- ances and appurtenances, in good order and operating con- dition throughout the term of this franchise, and the Grantee by accepting this franchise agrees that the Town or its successors has jurisdiction, to the full extent and in the manner now or hereafter provided by law, during the term of this franchise to require the Grantee to render efficient cable television service at reasonable rates, and that the Circuit Court of the County or its successor has jurisdiction to enforce compliance with all of the terms , provisions, conditions and limitations of this franchise to the full extent and in the manner now or hereafter pro- vided by law during the term of this franchise. MINUTES OF APRIL 9, 1980 MEETING . 214 SECTION VII . The Grantee agrees and binds itself to in- demnify, keep and hold the Town and its officers, employees and agents free and harmless from liability on account of injury or damage to persons, firms or corporations or prop- erty growing out of the erection, installation, maintenance, repair, operation and use of any of the Grantee' s property, including but not limited to posts, poles, wires, manholes, ducts, cables, conduits, electrical conductors, fixtures, appliances and appurtenances on the streets, alleys and other public places of the Town, and to maintain throughout the term of its franchise, liability insurance in companies acceptable to the town sufficient to cover such indemnifi- cation, all in accordance with the provisions of Sec. 5. 1-47 of the Town Code. SECTION VIII . The rights granted to the Grantee by this franchise may be exercised by any successor or successors, assignee or assignees of the Grantee with the consent of the Town Council but such successor or successors, assignee or assignees shall be subject to and bound by all of the provisions, terms , conditions and limitations prescribed in this franchise. SECTION IX. The rights and privileges granted by this fran- chise shall continue for a term of fifteen (15) years from the day of , 1980 unless sooner voluntarily surrendered by the Grantee, with the consent of the Town Council, or forfeited, or extended as provided by law. Upon the expiration of the term of this franchise or sur- render or forfeiture of the rights and privileges granted by this franchise, the Grantee, if required by the Town Council, shall remove all of its property, including but not limited to posts, poles, wires, manholes, ducts, cables, conduits, electrical conductors, fixtures, appliances and appurtenances from the streets, alleys and other public places of the Town, and shall repair, restore or replace any street, alley or other public place and any sewer or water, electric, fire alarm, civil defense system, police communication or traffic control facility or tree, or any part thereof, which may be damaged, disturbed or destroyed by or as a direct or indirect result of the removal of such property. SECTION X. This franchise and the rights and privileges granted thereby are not exclusive and nothing in this ordi- nance shall be construed to prevent a grant by the Town of a similar franchise and rights and privileges to other per- sons or corporations . SECTION XI. This ordinance shall become effective when the Grantee (a) accepts this franchise and agrees to exercise the rights and privileges granted by this franchise and upon and subject to the terms, provisions , conditions and limitations set forth in this franchise, which acceptance and agreement shall be in writing and (b) at the same time files with the Town the performance bond and security de- posit required by Sec. 5. 1-47 and Sec. 5. 1-48 of the Town Code. Such written acceptance and bond shall be filed as provided in this section before the day of 1980 . Aye: Councilmembers Cole, Herrell , D. Hill, M. Hill, Murray, Tolbert and Mayor Rollins . Nay : None. 80-0-8 , - ORDINANCE - PROVIDING FOR THE GRANTING TO A PERSON OR CORPORATION, ITS SUCCESSORS AND ASSIGNS HEREAFTER TO BE SELECTED IN A MANNER PRE- SCRIBED BY LAW, THE FRANCHISE, RIGHT AND PRIVILEGE TO USE THE STREETS, *ALLEYS AND c. OTHER PUBLIC PLACES OF THE TOWN OF LEESBURG FOR THE PURPOSE OF PROVIDING A CABLE TELE- VISION SERVICE AND SYSTEM. ORDAINED by the Council of the Town of Leesburg, Virginia, as follows : 215 MINUTES OF APRIL 9, 1980 MEETING. SECTION I . The Annexed Ordinance, entitled "AN ORDINANCE: GRANTING TO , ITS . SUCCESSORS AND ASSIGNS, THE FRANCHISE, RIGHT AND PRIVILEGE, UPON CERTAIN CONDITIONS, TO USE THE STREETS AND ALLEYS AND OTHER PUBLIC PLACES OF THE TOWN OF LEESBURG, VIRGINIA, WITH- IN ITS CORPORATE LIMITS, AS THE SAME NOW EXISTS OR MAY BE HEREAFTER EXTENDED OR ALTERED, FOR THE PURPOSE OF PROVIDING A CABLE TELEVISION SERVICE AND SYSTEM WITHIN SAID CORPORATE LIMITS" shall be advertised once a week for four successive weeks in the Loudoun Times-Mirror, a newspaper published in the Town of Leesburg, Virginia and having a general cir- culation in the Town of Leesburg. The purpose of said ad- vertisement is to provide, in the manner prescribed by law, for the granting of a franchise to use the streets , alleys and other public places of the town for the purpose of con- structing and operating a cable television service and sys- tem subject to the terms , conditions , provisions and limi- tations embodied in the aforementioned annexed ordinance . SECTION II . The public notice to be published with said ordinance shall be as follows : "The Town of Leesburg, Virginia hereby invites sealed bid proposals for the franchise, right and privilege, upon cer- tain conditions , to use the streets, alleys and public places of the Town of Leesburg for the purpose of providing a cable television service and system within the Town of Leesburg subject to the terms , provisions and requirements of the following proposed ordinance : (Here the ordinance shall be set out in full) . Bids must be submitted in writing and delivered to the Mayor of the Town in open session of the Council to be held in the Council Chambers , 10 W. Loudoun Street, in Leesburg, on June 11, 1980 at 7 : 30 p.m. The Public Notice, Invitation for Proposals, Application Form and Chapter 5. 1 of the Town Code, incorporated within the franchise ordinance by reference, constitute the invi- tation to bidders for the cable television service and sys- tem franchise and are available in the Office of the Town Manager, P . 0. Box 88, Leesburg, Virginia 22075, during regular office hours. The successful bidder shall reimburse the Town of Leesburg for the cost of advertisement. The right to reject any and all bids and to award the franchise in. the best interest of the town is reserved. A proposal fee of $1 ,000 is required which is only refundable in the event no franchise is awarded. " Aye : Councilmembers Cole, Herrell , D. Hill , M. Hill, Murray, Tolbert and Mayor Rollins . Nay: None. Mr. Hill asked why we are waiting 60 days? Mr. Niccolls explained that bids must be advertised for four weeks in a local newspaper and received not more than 7 days after the last advertisement. The bid date of June 11 is approximately 60 days, allowing for widespread advertisement and for response. We know of 8 or 9 firms that are prepared rather quickly. Mr. John Lubetkin said there will be a national cable tele- vision association convention in late May. Announcements can be made at that time, with June 11 giving all applicants an oppor- tunity. For this reason, he would prefer the June 11 date. 80-0-9 - ORDINANCE - AMENDING SECTIONS 17 . 1 AND 17 . 4 OF THE TOWN CODE. On motion of Mrs . Hill , seconded by Mr. Tolbert, the follow- ing ordinance was proposed: ORDAINED by the Council of the Town of Leesburg , Virginia, as follows : 216 MINUTES OF APRIL 9 , 1980 MEETING. SECTION I . Sections 17 . 1 and 17. 4 of the Town Code are amended to read as follows : Sec. 17-1 . Annual levy and rate of taxes. Taxes shall be levied and collected as provided by law on taxable real estate, tangible personal property and bank capital in the town for each fiscal year begin- ning July 1 and ending June 30 for the support of the town government, payment of interest on town debt and for other town purposes. Every person assessed taxes by the town shall pay them as required by law. ( 1) Taxes on all real estate and all tangible personal property, except the property of public service corporations, shall be as follows : Rate of Tax per Classification of Property $100 Assessed Value (a) Real estate $ 0 . 22 (b) Vehicles used as mobile homes or offices as described in Sec. 58-829 . 3 of the Code of Vir- ginia $ 0 . 22 (c) All other tangible personal property except that listed in Sec. 58-829 . 1 of the Code of Virginia $ 1. 00 (2) Taxes on all real estate and all tangible personal property of public service cor- porations shall be as follows : Rate of Tax per Classification of Property $100 Assessed Value (a) Real estate except as pro- vided in (b) below $ 0 . 22 (b) Real estate which has not been equalized as provided for in Sec . 58-512 . 1 of the Code of Virginia which shall continue to be assessed at forty per centum of fair market value $ 0 . 65 (c) Tangible personal property $ 1 . 00 (d) Property classified as tangi- ble personal property by the town before January 1, 1966 , except that portion re- classified as real estate under Sec . 58-514 . 2 of the Code of Virginia $ 1. 00 (e) Property classified as tanI/ - gible personal property by the town before January 1, 1966 and reclassified as real estate under Sec. 58-514 . 2 of the Code of Virginia $ 0 . 22 (3) The tax on all bank capital shall be at the rate of $0 . 80 per $100 . 00 of the net capital of banks located in the town pur- suant to Title 58, Chapter 10 . 01 of the Code of Virginia. MINUTES OF APRIL 9 , 1980 MEETING . Sec. 17-4 . Report required of banks. 217 Any bank, as defined in Title 58 , Chapter 10 . 01 of the Code of Virginia, located in the town shall deliver annually to the Director of Finance a copy of the report banks are required by the State Code to furnish to the commissioner of revenue for the county. SECTION II. This ordinance shall be in effect upon its passage, and Sec. 17-1 ( 3) shall apply in the fiscal year ending June 30, 1980 to the capital of banks located in the town as of January 1, 1980 . Mr. Niccolls explained that this has the effect of changing our bank stock tax so that it is in compliance with the latest State law on such taxes . It gives it a new name - the same tax rate and the same revenues are anticipated. We need to adopt it be- fore May 1 because that is the date of assessment. The banks will be paying this on bank franchise values for January 1, 1980 and will be paying it during the month of June. The State law specifically allows these ordinances to be retrospective. The ordinance was unanimously adopted: CD Aye: Councilmembers Cole, Herrell, D. Hill, M. Hill, Murray, CO Tolbert and Mayor Rollins. CO Nay : None. QPROPOSED RESOLUTION CONCERNING THE LEASING OF THE LOG CABIN AT 14 WEST LOUDOUN STREET. On motion of Mrs . Hill, seconded by Mr. Cole, a resolution proposed to lease the log cabin to the Loudoun County Chamber of Commerce was referred back to the Finance and Administration Com- mittee. The general thought was that it should be decided and recommended by the committee as to what type of operation they want in the log cabin and whether it should be advertised. The motion to send it back to committee was adopted by a vote of 6 to 1 : Aye : Councilmembers Cole, Herrell , M. Hill, Murray, Tolbert and Mayor Rollins . Nay : Councilmember D. Hill. 80-45 - RESOLUTION - AUTHORIZING LOANS FROM THE UTILITY FUND TO THE AIRPORT FUND FOR THE LEESBURG AIRPORT ADAP PROJECT. On motion of Mrs . Hill , seconded by Mr. Tolbert, the follow- ing resolution was proposed: RESOLVED by the Council for the Town of Leesburg, Virginia, as follows : If required to make timely payments to the contractor for Leesburg Airport ADAP Project #5-51-0027-02 , loans of un- encumbered utility fund balances are authorized to the airport fund to be paid back from future ADAP project grant revenues of the airport fund with interest of 13% per annum compounded annually. Mr. Niccolls said it is anticipated that the maximum loan would be in the neighborhood of $50, 000 for probably only 60 days while the FAA and the SCC are passing the money down to us . Mr. Minor explained that the Airport Fund now has bills in excess of its present balance. They will borrow the minimum amount needed. Mayor Rollins pointed out to Council that they are borrowing from one fund for the benefit of another. Mr. Hill said he could vote for it if he could be sure the loan would be for only 30 days . The resolution was unanimously adopted: Aye : Councilmembers Cole, Herrell, D. Hill, M. Hill, Murray, Tolbert and Mayor Rollins. Nay : None. MINUTES OF APRIL 9 , 1980 MEETING. 218 S 80-46 - RESOLUTION - MAKING SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING JUNE 30, 1980. On motion of Mrs . Hill, seconded by Mr. Herrell, the follow- ing resolution was proposed and unanimously adopted: RESOLVED by the Council of the Town of Leesburg, Virginia, as follows : SECTION I. The following appropriations are made from the General Fund to accounts below for the fiscal year ending June 30 , 1980 : Account No . 10110 .102 Street Department Overtime $1, 600 .00II Account No. 10110 . 854 Phase IV - Storm Sewer $2 , 500 .00 SECTION II . A supplemental appropriation is made from the Utility Fund to Account No . 20500 . 805 Waterworks Improve- ments, in the amount of $20 , 842 . 63, for the fiscal year ending June 30 , 1980 . Aye : Councilmembers Cole, Herrell, D. Hill, M. Hill, Murray, Tolbert and Mayor Rollins . Nay: None. On motion of Mrs . Hill, seconded by Mr. Tolbert, Council voted unanimously to go into executive session to discuss legal and personnel matters . Council reconvened and on motion, duly seconded, Council voted unanimously to adjourn with no action taken. Mayorid_c_rts ,te ,e, I Clerk of th Council