10-28-1975 Supporting DocumentsREGULAR MEETING
A Regular Macting of the City CQUnel1 of the, city of Ciermont was hold in the
u7:30 P. 14.eby Mayorrson eCiaudeOE. Smoak, Jr, withfthe��followingwas
members calleprresto ent�:
at
Councilman Blackburn, Schroedol, Byrd, and OswaiL. Other officials present
were: City Manager Hopkins, City Attorney (laird, City Clerk Carroll, Finance
ief of police T
Othersopresentrwerre; TherMessrsl. Drumu nd,vices Boyd,ech, Cardenor , Sargent, Doub�,ndal.
Hamlin, and Beals. Two students of Political Science at Lake Sumter Community
College were also present.
Uon given by
erend Leon
followedibytion of repeatiingyor of theak the Pledge ofvocation Allegiancesin unison byvthose present.
The Minutes of the Meeting held October 21, 1975 wore approved as written.
eared
toesolicit enndorsemeent ofehavingJMaythe
1, 1976Lions
designedbasa"STAND UPFORAMERICACouncil
DAY" in Clermont. He advised it was a goal of the Lions Club to sponsor a
withra��rof ally. Hetism to adviseditheude the entriesbin the gest parade wouldarade held yet in be non-politihe cal
non-commercial, and the rally would be strictly patriotic. He still further
advised the request was being made this far ahead of date in order to prevent
any conflict of other programs on that date. Council was in agreement to
cooperate for the success of such a proposed program, ^whereupon nmotion cwas made
ca
City Manager Hopkins reported as follows: That he had received a request for use
of Jenkins Auditorium on November 14th for a dance to be held between 10:00 and
12:30 A. M. sponsored by the Senior Class of Clermont High School; That he was
in receipt of brochures offering various styles of chairs which he would like
Council to consider for use in the Council Chambers; That notice had been received
from Senator Lawton Chiles that his assistant in this district would be at Jenkins
Auditorium on October 30th to offer his assistance to the public with regards
any questions and/or information they might desire of congressional matters; and,
That publication would be made by the Police Department that public Halloween
activities will not be allowed after 9:00 P. M. on October 31st.
r,.,,..,.ii— R1arRw,rn. seconded by Councilman Oswalt and
Finance Director DeDier reported briefly on his attendance of the Municipal
Finance Officers session at the State League of Cities Convention held recently.
He advised that the speaker of the session was Mr. Tom Neilson, Aide to
Representative Carl Ogden who is Chairman of the Committee on Finance and Taxation,
and he felt there were two particular points of interest expressed in ,his talk
that could expressly affect small municipalities such as Clermont. Mr. Neilson
advised it was proposed to prepare necessary legislation to stop impact fees.
Mr. Dedier explained that in the case of Clermont, this would mean the loss of
revenue derived from all water and sewer tap -on fees which certainly would
have adverse effect on the city 's budgeting inasmuch as the city has already
engineered capital improvements dependent upon such revenues to pay off the
indebtedness; That he had spoken out about how such action would have such impact
on small municipalities, but that Mr. Neilson was confident that such legislation
MINUTES NY 1200
would be proposed anyway. liasod on this, it was the suggestion of Mr. DeDior
that close contact be kept with Tallahassee with regards proposed legislation
wherein it might be wise to be represented by someone from the local Lake County
League of Cities. Mr. DeDior still further advised that it was brought out in
the session that Federal Revenue Sharing Funds were allocated to the municipalities
in Florida based on the census of 1970 which would have to be determined as
inequitable inasmuch as the State of Florida had been one of two of the
fastest growing states in population after that date.
Mayor Smoak reported that he felt a general observation gained by those attending
the Florida League of Cities Convention was that legislation was proposed in
Tallahassee that often imposed critical financial situations on small municipalities
that those proposing the legislation did not realize, and because of this,
it would certainly behoove local offocials to keep aware of proposed legislation
and in close contact with their elected state legislators.
Mayor Smack reported that he had received a request for use of the Jenkins
Auditorium, without fee, for a spaghetti supper to be held on February 27th
sponsored by the local Pilot Club for benefit to South Lake Memorial Hospital.
Motion was made by Councilman Blackburn seconded b Councilman Oswalt and
unanimously carried that t e request a granted. In view of stea y increasing
costs for electrical energy making it more difficult ti keep a balanced budget,
it was the suggestion of Councilman Byrd that a cost report for energy used at
the Jenkins Auditorium be obtained for Council's study and information.
Motion was made by Councilman Oswalt seconded by Councilman Blackburn and carried
that the bills be paid. ---
Having previous submitted a Statement of Operations regarding the City of
Clermont areas as opposed to one previously submitted wherein Clermont had been
included in the Winter Garden Division, Messrs. Doub and Hamlin again appeared before
Council in support of their request for a rate increase for cable television by
Teleprompters, Inc. Mr. Henry Czech reported from the floor that he had been
contacted at this home by salesmen from Teleprompter, Inc. on two different
occasions after the request for a rate increase had been made to the city,
soliciting his subscription for their service, but on neither occasion was there
mention of a possible rate increase. He opined this was very unethical business
practice. Mr. Doub, Supervisor of salesmen, advised that he was unaware of this,
but would investigate the matter. Motion was made by Councilman Blackburn and
seconded by Councilman Oswalt that City Attorney Baird be requested to prepare
the necessary amending Ordinance to grant a rate increase as requested, and
I-- . Orl he nn further requests for
During discussion of the motion, Mayor Smoak advised that he couia noz suppurti
passage of the motion because he felt the increase requested was excessively
high. in view of the short time the city had been on the system. Upon vote on
the motion, the motion carried with Mayor Smoak and Councilman Schroedel voting,
Naye.
With regards an appointment to the Plumbing Board to fill the unexpired term
of the late Morton J. Barnes, City Manager Hopkins advised that Eugene!Swi.tzer
Journeyman Plumber, had been contacted and was agreeable to serve. Motion was
made by Councilman Schroedel seconded by Councilman Blackburn and carried
Councilman Bvrd introduced AN EMERGENCY ORDINANCE UNDER THE CODE OF ORDINANCES
OF THE CITY OF CLERMONT, FLORIDA, SUBMITTING TO THE ELECTORS OF THE CITY OF
CLERMONT PROPOSED AMENDNENTS TO THE CHARTER OF THE CITY OF CLERMONT, PROVIDING
FOR THE PLACING OF THE PROPOSED AMENDMENTS TO A VOTE OF THE ELECTORS AT THE
NEXT GENERAL ELECTION, AND PROVIDING AN EFFECTIVE DATE and the ORDINANCE was
read for a first reading by City Clerk Carroll, by title only.
El
MINU'rES M 1201
Councilman Blackburn offered and moved the adoption of AN EMERGENCY ORDINANCE
UN-ULItTIT[—COLIC 01 oiDTN71t`7CGS OI TTFL-a-Ir' OF CLERMONT, FLORIDA, SUBMITTING TO
THE ELECTORS OF THE CITY OF CLERMONT PROPOSED AMENDMENTS TO THE CHARTER OF
THE CITY OF CLERMONT, PROVIDING FOR THE PLACING OF THE PROPOSED AMENDMENTS TO A
VOTE OF THE ELECTORS AT THE NEXT GENERAL ELECTION, AND PROVIDING AN EFFECTIVE
DATE. The motion was seconded by Councilman Byrd. The ORDINANCE was read
for a second and final reading by City Clerk Carroll, by title only, and upon
roll call vote on passage of the motion, the result was: AYES: Oswalt, Byrd,
Schroedel, Blackburn and Smoak. Total Ayes: Five. NAYES: None. So the
ORDINANCE was adopted and the number 140-C assigned to it.
Councilman Oswalt offered and moved the adoption of AN ORDINANCE UNDER THE CODE
OF ORDINANCES OF TIIE CITY OF CLERMONT, FLORIDA, PROVIDING FOR THE ANNEXATION OF
A CERTAIN PARCEL OF LAND CONTIGUOUS TO THE PRESENT CITY BOUNDARIES: PROVIDING
AN EFFECTIVE DATE: PROVIDING FOR SEVERABILITY PROVIDING FOR PUBLICATION and
the motion was seconded by Councilman Blackburn. The ORDINANCE was read for
a second and final reading by City Clerk Carroll, by title only, and upon
roll call vote on passage of the motion the result was: Ayes: Byrd, Blackburn,
Schroedel, Oswalt, and Smoak. Total Ayes: Five. Nayes: None. So the ORDINANCE
was adopted and the number 139-C assigned to it.
Mayor Smoak called a Special Meeting of the City Council for 5:05 P. M. on
November 17, 1975 in the office of the City Manager to verify the petitions
of candidates for the General Election to be held on December 2, 1975, and to
authorize the official ballot.
The meeting was adjourned by Mayor Smoak at 8:25 P. M.
Claudak, Jr., `ayor
Dolores W. Carroll, City -Clerk
TO: City Council
FROM: City Manager
SUBJECT: TolePrompter Rate Increase
DATE: October lh, 1975
At the meeting on August 12, 1975 the Council asked TelePrompter to
furnish additional data regarding their Clermont activity to support
the requested rate increase.
Attached is Teleprompter's Statement of Operations which provides the
requested information.
This matter will be on the Council Agenda on October 28th. If there
are any questions regarding the information, please advise so they
can be relayed to TelePrompter and the answers generated prior to
the meeting.
attachment �J
cc: City Clerk w/attachment Agenda 10/28/75
City Attorney w/attachment
1i
LI.LLPROMIT-JZ OF A'ld)It1DA, 1NC.
CITY OF C7.1111MON'f
NM''S TO PRO-FOIM MA'1'I NIENT OF OP1sRATiONS
Other Revenue (cont'(1)
Projected Other Revenues Amount Allocated to
For the Year EndLnu Entire Winter Carden Division Clermont (21.7%)
December 31, 1975 $ 2,864 $ 61
Dccenibur 31, 1976 3,000 621
December 31, 1977 3,300 716
Cost of Servi.cet:
Cost of services has been increased by 9.7% each year to give effect to
inflationary trends. Since these costs relate principally to the physical
plant, the allocation to Clermont has been based upon the ratio of plant
miles in Clermont to total plant miles in the Division.
Projected Cost of Services Amount Allocated to
For the Year Ending Entire Winter Garden Division Clermont (22.6%)
December 31, 1975 $ 96,291 $ 21,672
December 31, 1976 105,631 23,873
December 31, 1977 115,877 26,188
Selling, General and Administrative
Franchise fees and bad debt expense have been increased each year pro-
portionate to the increase in subscriber revenue. Other selling, general.
and administrative expenses have been increased each year by 9.7% to give
effect to inflationary trends.
Since these costs vary primarily with the number of subscribers, they
have been allocated to Clermont in the ratio of subscribers in Clermont to
total subscribers in the Division, as follows:
Projected Selling
General and Administrative Expense
Amount Allocated
For, the Year
Endinc
Entire Winter Garden Division
to Clermont
December 31,
1975
$148,560
$32,238
December 31,
1976
164,131
35,616
December 31,
1977
181,305
39,343
cont'd/.,.
MIT
T.F.LE,1TOH?TE,1t OF rid INC.
CITY OP CLlii@,,.,.
PIOTRS 1'0 P1tO-rOIMA :STATINT•.W OF OPMUTIONS
'rite preparation of it Statement of Operations for the City of Clermont
is possible only by ranking certain ge[teral assumptions as to the amount of
expmues attributable to the individual franchise areas within the Winter
Garden Division. These assumptions are necessary because we do nut maintain
separaLu financial records for each franchise area; it; is not practical or
required by the nature of our business to do no.
To prepare the Statement of Operations fur the City of. Clermont, two
criteria were used to allocate•expunscs:
Average plant miles for the six months ended
June 30, 19752 Clermont 26
Average plant miles for the six months ended
June 30, 1975, total division 115
Clermont as a % of total 22.6%
:.Average subscribers for the six months ended
Juno 30, 1975, Clermont 631
Average subscribers for the six months ended
Junc 30, 1975, total division 2,912,
Clermont as a % of total 21 7%
It is assumed that these percentages will remain the same for the three
years ending December 31, 1977.
Subscriber Revenue
Subscriber revenue is based upon the proposed monthly primary rate
of $7.50 being effective for the three years ending December 31, 1977.
Subscriber revenue reflects a 5% loss of subscribers due to the rate increase.
Average subscribers were projected as follows:
For the Year Ending Average Subscribers
December 31, 1975 614
December 31, 1976 705
December 31, 1977 808
Other Revenue a..
Other revenue has been allocated to Clermont in the ratio.of subscribers
in Clermont to total subscribers in the Division as follows: br
cont'd/ .
TlMMIRON1191M, 01: VI,ORIDA, INC.
CITY OF CLBRMUNT
STATII'MU1 OF OVEILMONS
Revenue;::
Subscriber.
Other
Total
Costs and Expenses:
Cost of services
Selling, general and
administrative
Depreciation and amortization
Interest
Total
Net (loss)
Pro -Forma
Por Lha_Ygtcrc Eluding Deccml?cr 310
1975 -W/0
1.977
$ 55,268
62'1
55,889
21,762
32,238
16,373
14,517
84,890
21 9>001)
- See Accompanying Notes -
$ 63,450
$ 72,675
651
716
64,101
73,391
23,873
26,188
35,616
39,343
22,504
22,504
14,255
14,255
96,248
102,290
32 147
^ 28 899)
TK1d3PRON1fiER Or 1'LORIDA, 114C.
CIT'L OF C7dili •IO:iL'
NOTES TO PRO -FORMA 5•'1'ATL•N;NT Or OPEILITIONS
b� procin;_a and Amortization
Depreciation and amortization has not been increased for the year andi.ng
December 31, 1975. ror the years ending December 1976, and 1.977, the depreciation
and amortization has been increased to reflect the completion of construction which
was in prol;reso at December 31., 1.974. Since such costa are principally relaLe l to
plant, the allocation has been made based upon L•ho ratio of plant miles in Clermont
to total plant miles in the. Division.
Projected Depreciation
and Amortization Amount Allocated to
For the Year Ending Entire Winter Garden Division Clermont (22.6%)
December 31, 1975 $ 72,447 $ 16,373
December 31, 1976 99,575 22,504
December 31, 1977 99,575 22,504
Llicresf
Interest expense for the Winter Garden Division has been reflected on 54.5%
of Teleprompter's investment in and advances to the Winter Garden Division. '"his
treatment gives the Winter Garden Division the benefit of Teleprompter's favorable
debt to equity ratio which averaged approximately 1.2 to 1 for the year ended December
31, 1974. The same relationship of debt to equity was projected to exist for the
three years ending December 31, 1977. Interest expense has been calculated based upon
an assumed effective borrowing rate of 13,5% (same ay 1974) for;the year ending
December 31, 1975 and 11% for the years ending December 31, 1976 and 1977. To the
extent that advances are used to finance construction of plant not yet in service,
the interest applicable thereto is capitalized as a cost cicmcnt• of plant and is not
included in interest expense, Since such costs are principally related to plant,
the allocation has been made based upon the ratio of the .plant miles in Clermont to
total plant miles in the Division.
Projected Interest Amount Allocated to
For the Year Ending Entire Winter Garden Division Clermont (22.6%)
December 31, 1975 $64,234 $ 14,517
December 31, 1976 63,077 14,255
December 31, 1977 63,077 14,255.'
r• r
V I•
/ !M
TELE-PR om PTEi11-fulrl'ruiryif nr ul llariJa, Inc.
Ri GG HH1l1l AYI GG"' Y� ;1'1 Cost CYnu^�:1L • I',U. eu. aU7
I;I,11.3nn,19wldn :1
OG) n6u.:1:121, 8117-11411
6
July 29, 1975
RECEIVED AUG 5 1975
Honorable Mayor and City Council Members
City of Clermont, Florida
No. 1 West Gate Plaza
Clermont, Florida 32711
Gentlemen:
First let me thank you for the courtesy shown Mr. hamlin and me during the
Council Meeting of July 22, 1975. The business -like manner in which you
received our rate increase request was greatly appreciated.
As I indicated in my previous letter, except for plant and equipment,
Clermont's impact on the '74 financial data presented was marginal at best.
Of the $136,207 received in subscriber revenues, Clermont accounted for
$4,349 or 3%. on the other hand, of the $597,548 expend in '74 for plant
and equipment, $275,671 or 46% was spent in Clermont proper.
Because Teleprompter publishes the financial data contained in our presen-
tation annually, the information furnished below has been extracted from
monthly Franchise Tax Reports, customer account records and various other
reports sent to this Division by N.Y. They are subject to minor year-end
adjustments but, by and large, accurately reflect the general operations in
the Clermont Franchise.
Honornblu Mayor and City Council Mumhurs
City of Clurmont
Page Two
1975 (JAN 1 - JUNI 30)
TOTAL
CLERMONT
PERCENTAGE OF TOTAL
Average Customers
2,942
631 +1(,,0
21.4%
Average Milus
115
26
22.6%
Average Rate (includes
$6.37
$5.20
state tax)
Subscriber Revenues
$109,836.
$19,192.
17.4%
(Using Average Rate)
$23,624.
21.5%
The 1973 Balance Sheet
for this Division reflected a total of $783,915
invested in Property, Plant
and Equipment.
1974 Balance
Sheet reflects an
increase of $597,548 in
these categories.
Clermont's share of this increase
is as follows:
Plant & Equipment
Plant
$200,000.
Tower Site
36,000.
($50,000. Clermont's share is 26 of
36 miles, 72%)
Installation Material
13,671.
($21.00 per installation X 651)
Stand By & Maintenance Equipment
26,000.
(Initial purchase: Hardware and cable,
$15,000; active devices, $6,000;
headend equipment, $5,000)
TOTAL
$275,671.
PERCENTAGE OF '74 TOTAL
46%
PERCENTAGE OF GRAND TOTAL
20%
Ilonorablo Mayor mid City Council Msmburs
City of Clermont
Page Three
In addition to the itc:mn listed above, many Lhoutiands of dollars havu boon
previously spent on such items as vehicles, Loolii, test equipment and office
equipment now being used in support of the Clermont Franchise,
Since Clermont is relatively new, it has naturally proven lean costly to
maintain. This is because all active devices ate under a one-year factory
warranty, and there has been less natural wear and tear on the physical
plant. However, both the customers and plant still must be serviced and
maintained.
There are many variables in the financial operations of a Cable System;
size of system, growth potential, subscriber saturation, etc. With the
exceptions of Clermont, we have attempted to keep uniform rates throughout
the Division and have or will approach all franchises requesting the same
Respectfully,
4�
J A. Doub
stem Pianager
JAD/hn
w. 1,1w use of the clormont Jenkin'.., (AVIC
batmell thij k1m)"; 4)(
Atoll Cori un oil.-
dw "I'llice Is sponsored by
(�Xl 10A, c). C "Cle
..... ....... .
iw; hlor —"r" All be in OU1,11dallu, w;
A-
x,, a t cu t.a.l fcc ofe;,z oo per jiciur w i,- . -i
e,
lik!1:d(1U W the building and or fixtures and
C.,,�)are posting v5u.00 as surct:y with
it Is my/our unders-I'anaing that t1w.
five days following
Upo dance jl,r Adfflltj that tho al.6itorium and (uDrmcuva are not damaged.
Sponsors T) or
C-4, 0
ACCOUNTS PAYABLE OCTOBER 3.975
GENERAL FUND
Florida True 8orvica
(Treo Oervicu-Caldwoll Property)
120.00
Armstrong Smith Paints
(Paint)
17.17
Champion Uniforms
(Uniforms)
84.47
Central Industrial Sales, Inc.
(Fire Truck Repair Parts)
14.25
Crest Rontaurant
(Prisoner meals)
35.00
Clements
(Pont Control)
9.00
Rckord Drug❑
(Picturos)
4.60
Ed & Clair.e'n Restaurant
(Prisoncro Meals)
25.50
Dr. H. Russell. Foglor.
(Travol Expenses)
165.12
Ford Press, Inc.
(Competency Cards & Stamps)
30.00
Florida Power Carp.
(linorgy Charge)
4,469.16
Gem Chemical. Company
(Janitor Supplies)
20.30
Hi -Acres, Inc.
(Chlordane)
110.00
IBM
(Service Agreement)
11.48
Kidders Restaurant
(Prisoner Meals)
30.80
Lakeland Batteries
(Battery)
20.85
Miller Bearings
(Bushings)
11.90
McCain Sales of Fla., Inc.
(Signs)
46.00
Maddens Bloc. Service
(Installed Timer -Tennis Courts)
328.39
Mobil Oil Corp.
(Petroleum Products)
589.02
Motorola Communications & Elect.,
Inc. (Radio Maintenance)
105.50
Olivenbaum Insurance Agency
(Insurance)
12,702.25
Orlando Paving Company
(Asphalt)
605.56
Shelfer Ford Tractor Co.
(Filters & Mower Blades)
73.26
-- South Lake Press
(Offense Reports)
37.60....
Sears, Roebuck & Co.
(Tarpaulin)
47.40
Sports World
(Strapes for Tennis Court)
10.50
Sentinel Star Co.
(Legal Advertsing)
28.13
Wood Heating & Cooling
(Monthly Maintance)
130.00
Prescott Tractor Co.
(Bearings)
18.86
19,902.07
UTILITIES DEPARTMENT.
Cherne Scientific, Inc.
(Chemicals)
32.88
Florida Power Corp.
(Utilities)
3,277.53
Lakeland Batteries Inc.
(Battery)
33.40
Konsler Steel Co.
(Steel)
48.30
Office Equip Exchange, Inc.
(Maint. Contract Renewal)
31.20
Olivinbaum Insurance Agency
(Insurance)
4i420J75
Orlando Lab., Inc.
(Chemical Analysis)
35.00
Locke Well & Pump Co.
(Seminole Well)
6,447.24
Moffatt Bearings Co.
(Bearings)
17.63
14,343.93
a
ar o
MINUTES NQ 1202
SPECIAL MEETING
A Special Meeting of the City Council of the City of Clermont was hold in the
office of the City Manager on Monday, November 17, 1975. The meeting was called
to order at 5:05 P. M, by Mayor Claude E. Smoak, Jr., with the following members
presCityeManagerruncilman Hopkins,SFiranzolDirectorand Oswalt. DeDier, and other
Clerkofficials
Carrojj. Mr. were:
Charles B. Beals was also present.
Mayor Smoak announced the purpose of the meeting was to verify the petitions
of candidates for the General Election to be held on December 2, 1975, and to
authorize the official ballot.
City Clerk Carroll presented petitions of George J. Schroedel, Ben Blackburn,
Mrs. Roberta N. (Bobbi) Dean, Dennis L. Horton, and advised they were in
order. Mayor Smoak inquired if there be any further petitions to be submitted,
and there being none, motion was made by Councilman Byrd, seconded b Councilman
'-A 411+ a� _ ho 'I., nn r ncad�furt er De t' t OnS
De accepzea.
City Clerk Caroll presented the proposition to appear on the ballot as authorized
in Emergency Ordinance No. 140-C.
Motion was made by Councilman Dvrd seconded by Councilman Oswalt and carried
That the OFFICIAL BALLOT of the General Election of the Cat of Clermont, Florida
to be held on December 2, 1975 be prepare as follows:
FOR COUNCIL MEMBER - GROUP II
(Two Year Term)
( ) Blackburn, Ben
( ) Dean, Mrs. Roberta N. (Bobbi)
FOR COUNCIL MEMBER - GROUP IV
(Two Year Term)
( ) Horton, Dennis L.
( ) Schroedel, George J.
STRAW VOTE PROPOSAL
DO YOU FAVOR THE PROPOSED AMENDMENTS
TO THE CHARTER OF THE CITY OF CLERMONT,
LAKE COUNTY, FLORIDA AS PROPOSED IN
EMERGENCY ORDINANCE NUMBER 140-C?
( ) FOR the Proposal
( ) AGAINST the proposal
The meeting was adjourned by Mayor Smoak at 5:20 P. M.
C/Ts
Claude E. Amoakd,�Jr., l ayor
Dolores W. Carroll, City Clerk