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3 <br />alter their rate structure within the guidelines of the Cable TV Act <br />of 1984. It should be noted that Congress is currently developing <br />new legislation concerning cable television. Such legislation might <br />or might not alter the relationship between local government and <br />cable television franchises. <br />The Board of Commissioners should be aware that the franchises <br />for the two Cable TV companies will expire on February 24, 1996. <br />Three years before the expiration date the County Commissioners may <br />inquire into the operations of the companies and prepare to write a <br />new franchise agreement. The Cable Television Systems serving <br />Orange County subscribers are closely integrated with the Chapel <br />Hill and Carrboro systems. The head -end for Carolina Cable is <br />located in Chapel Hill and the head -end for CVI is in Carrboro. It <br />is essential, therefore, that the three governments work closely <br />together in the next franchising period. The Town of Chapel Hill <br />will be writing their new franchises before Orange County, so it is <br />important to coordinate with this government. <br />The Committee recommends that the Board of County Commissioners <br />plan to hold a series of public hearings on cable television service <br />and citizen needs for the next 15 year franchise period. These <br />public hearings should begin in 1993. <br />The Committee suggests the County consider several issues in <br />preparing a new franchise agreement: <br />1. Cable companies should coordinate with the Emergency <br />Management System to provide citizens with emergency alert <br />warning their cable systems regardless of the channel to <br />which viewers are tuned. This is accomplished through <br />broadcast radio and television, but not on all channels of <br />Cable TV. <br />2. In the next franchise period Cable TV companies should have <br />adequate technical facilities to accommodate new technology <br />that is expected to come on line which meets community <br />needs and expectations. This should include conversion to <br />technology which will accommodate cable ready television <br />receivers. Carolina Cable should convert from the present <br />HRC system. <br />3. The cable companies should have the technical capability to <br />accommodate the increased demand for channels. It would <br />not be unreasonable to expect a 60 channel minimum by the <br />year 2000. <br />4. The cable companies should continue to develop technology <br />to permit interactive video and audio. <br />