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of its upgrade investment, As noted earlier, it is the 1235 rate filing that is under challenge by <br />Action Audits, To date, TWC has refused to provide local franchise authorities the financial <br />information by which verification could be made. <br />Action Audits believes that TWC may have recovered more money from its customers than way <br />invested and that conceivably Triangle J customers have been over-charged and are entitled to <br />a refund, Without financial disclosure from TWC, the magnitude of any recavery is unknown, <br />but Action Audits estimates that the overage per subscriber in unincorporated Orange County <br />may be around $126 (est, 7000 subscribers @$126= $882,000), <br />As a result of the presentation and discussion, the BOCC directed staff to bring forward the <br />attached report and related resolution for action at a future meeting. Adoption of the rate <br />resolution denying the 1235 rate filing would align Orange County with other Triangle J <br />municipalities seeking relief through an appeal before the FCC. <br />Attached is a copy of the Review conducted by Action Audits, Ll_C, and their drafted <br />Resolution. Also attached as additional background is the Response to the Review prepared <br />by TWC, <br />FINANCIAL IMPACT: There is no financial impact to the County in the approval of the report <br />and adoption of the proposed rate order resolution. <br />RECOMMENDATION(S): The Manager recommends that the Board accept the report by <br />Action Audits, LLC and adopt the proposed 2005 Rate Order approving the basic cable service <br />rate, the proposed equipment and installation rates, and denying the 'add-on' charge in <br />unincorporated Orange County, <br />