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6 <br />WHEREAS, the County recognizes that the public interest is served by extending the term of the <br />franchise to enable Time Warner Cable to prepare and submit to the County a detailed technology <br />upgrade plan for the County, in preparation for refranchising; and <br />WHEREAS, it is understood that the resolution to extend the term of the franchise to February 24, <br />1997, does not in any way serve to prejudice any franchise renewal rights of Time Warner Cable, nor <br />require the refilling of any notice of intent to renew the franchise, granted pursuant to the County's <br />cable franchise ordinance. <br />NOW, THEREFORE, BE IT RESOLVED: <br />That, the County hereby approves a 12-month extension of the County's cable franchise <br />ordinance with Time Warner Cable, NC-0276, to expire on February 24, 1997; and <br />That, this action shall be entered into the Minute Book of the Board of Commissioners. <br />VOTE: UNANIMOUS (Commissioner Crowther_was absent) <br />VII. SPECIAL PRESENTATIONS -NONE <br />VIII. PUBLIC HEARINGS <br />A. CABLE TV FRANCHISE RENEWAL <br />This is a public hearing on the request for proposal which states the minimum <br />standards for cable-telecommunication distribution system infrastructure. The comments received <br />will be considered in the franchise renewal negotiations with Time Warner. <br />Bob Gwyn, Chair of the Cable TV Committee, noted that with the new <br />telecommunications law, telephone companies can now enter the cable TV business and cable TV <br />can get into the telephone business. He gave several examples of how competition will increase. <br />There is a lot of uncertainty out there. In response to the County's request for proposal, Time <br />Warner proposes to rebuild their system in two or three years using fiberoptic cable which is <br />consistent with their agreement with the FCC and their social contract. The company is offering <br />nothing new in Orange County. The proposed system would be technically superior. They are <br />asking for a twenty. year franchise. Time Warner is proposing extending service to residential areas <br />no lower than 25 homes per mile. They propose that in counting the number of homes, dwelling <br />units with satellite dishes will not be counted. The Cable Advisory Committee finds this <br />unacceptable. The 25 homes per mile is too high. They still are concerned to secure afull-time <br />public access, educational access and government access (PEG) service with channels and funding <br />to support full service programming reflecting the needs and interests of the citizens of Orange <br />County. With a reasonable cooperative system operated by an independent nonprofit corporation, <br />the County should expect a very high quality PEG system -the best in the country. They hope that <br />Time Warner will become a contributor to the community as other large companies are by providing <br />grants for an excellent PEG system for the County. They have areas of disagreement with Time <br />Warner that they hope can be settled by negotiation. The negotiating team has a single purpose - <br />to negotiate the best cable and telecommunication service possible for the citizens of Orange <br />County. Good public policy is top priority. <br />Commissioner Gordon asked how they go about negotiating with a monopoly. Bob Gwyn <br />said they have a good negotiation team and they want to have a franchise and it is to their economic <br />advantage to have a franchise. They very much want to rebuild a system that will provide other <br />information services. The County can take their time. He said that the negotiating team is <br />reasonable and they have every reason to believe that Time Warner will be reasonable. <br />THE PUBLIC HEARING WAS OPEN FOR PUBLIC COMMENT <br />Mr. Michael Packard, member of the Cable TV Committee, said that one of the important <br />things they will try to do is to clarify all the vagueness in the proposal. They want the proposal to be <br />