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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: November 4, 1996 <br /> Action Agenda <br /> Item No. g_'P <br /> SUBJECT: Cable Franchise Fee Audit <br /> DEPARTMENT: County Manager PUBLIC HEARING: (Y/N ) <br /> BUDGET AMENDMENT: (Y/N) <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Agreement Albert T. Kittrell, Assistant County Manager <br /> ext. 2300 <br /> TELEPHONE NUMBERS: <br /> Hillsborough 732-8181 <br /> Chapel Hill 968-4501 <br /> Durham 688-7331 <br /> Mebane 227-2031 <br /> PURPOSE: To enter into an agreement with Triangle J Council of Governments for Cable TV <br /> Franchise Fee Audit. <br /> BACKGROUND: Triangle J Council of Governments will represents local governments who <br /> desires cable TV franchise fee audits. TJCOG will enter into an agreement with Lewis and <br /> Associates to determine if the County is receiving the correct amount of franchise fees from Time <br /> Warner Cable. Franchise fees are based on five percent of the gross revenues received by Time <br /> Warner from customers in the unincorporated areas of Orange County. Since the county is currently <br /> negotiating a new franchise with Time Warner, an accurate accounting of customers and franchise <br /> fees is appropriate at this time. <br /> The agreement is based on a retainer of$1,250 and$300 of out of pocket expenses based on <br /> receipts of actual expenses. If Lewis and Associates identify underpayments of franchise fees to the <br /> county,the firm will receive a commission based on a percentage of underpayments not to exceed <br /> $5,000. The minimum cost to the county for this service will be $1,550 ($1,250 +$300). The funds <br /> will be expended from the Cable TV Franchise Renewal Budget. If the firm discovers <br /> underpayments of franchise fees by Time Warner,the commission paid to the firm will be expended <br /> from the underpayment fees. <br />