Orange County NC Website
io <br />Ms, McCausland explained that the 5% franchise fee paid by TWC to Orange <br />County is supposed to go toward the County's operating costs for PEG access. <br />The capital costs associated with PEG access are to be paid for through other <br />means, for example in Carrboro subscribers pay a "pass through" amount to TWC <br />which goes toward capital expenses associated with the Town's PEG access. <br />Ms. Harvey checked her understanding of how such an arrangement might be <br />applicable to Orange County's situation: Orange County pays the People's <br />Channel to tape and rebroadcast BOCC meetings, Those meetings are broadcast <br />to County subscribers on Chapel Hill's public access channel, the capital costs of <br />which are paid for by Chapel Hill subscribers. In effect, she said, unincorporated <br />Orange County subscribers are getting public access programming for free, <br />because they do not pay a pass through for the PEG access capital costs. Mr, <br />Patrick added that in 1996, when Chapel Hill and TWC entered into a cable <br />franchise agreement, the FCC rules governing how capital expenditures for PEG <br />access are to be recaptured were not as clear as they are now. The rules were <br />clarified in 1999• He asked TWC if it would allow a pass through for the capital <br />costs associated with the County PEG access in return for a twenty,year term, <br />Ms. Harvey said that the shared question around the table is "how to amortize the <br />$2i5,ooo that TWC estimates it will cost to run live feeds to the two BOCC <br />meeting sites; how to recapture that amount from the subscribers?" <br />Ms, McCausland said that in answering that question all parties should also note <br />that if the pass through is too high then subscribers will switch to dish TV, which <br />penalizes both TWC and Orange County (the County loses its 5% share from the <br />franchise fee), <br />Mr. Patrick reiterated that TWC should weigh the capital costs against the term <br />length, and asked TWC to come back with a proposal or some options. <br />Sections i3. - 22. No issues were raised regarding these sections. Mr. Phillips <br />asked if these sections are acceptable as they stand, but did not get an explicit <br />reply. Mediator notes that group members should make an explicit and.joint <br />decision that these sections are acceptable, or identify issues needing further <br />discussion. <br />Section 23. Performance Bond and Section 24. Remedies -Liquidated <br />Damages <br />Ms. McCausland will identify in writing some problems that she believes will <br />arise if the Orange County cable regulatory ordinance were not repealed upon <br />adoption of a cable franchise ordinance. Ms, Harvey will share the ideas with the <br />County attorney for consideration. <br />Mr. Patrick reiterated his intention to review the proposals offered early by Ms, <br />McCausland, "Section 23. Letter of Credit or Performance Bond," and Section z4, <br />Remedies -Liquidated Damages," (8/r~/o4). <br />