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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: February 17, 2004 <br />Action Agenda <br />Item No. ~ - 2_ <br />SUBJECT: Acceptance of Report by Action Audits, LLC and adoption of 2004 Rate Order <br />Resolution for Cable Services in Unincorporated Orange County <br />DEPARTMENT: County Manager <br />ATTACHMENT(S): <br />Review of Time Warner Cable's <br />FCC1240 and 1205 Rate Filings, <br />Prepared by Action Audits, LLC <br />2004 Rate Order Resolution <br />PUBLIC HEARING: (Y/N) No <br />INFORMATION CONTACT: <br />Gwen Harvey, Asst. County Manager, <br />ext. 2300 <br />Michael Patrick, Chair, Cable Advisory <br />Committee <br />Robert Sepe, Action Audits, LLC <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider approval of the cable consultant's review of a request by Time Warner <br />Gable to increase rates charged far basic cable television service, installation, and equipment <br />rental for 2004, and adoption of a rate order resolution based on that review. <br />BACKGROUND: In October 2003, Time Warner Cable filed with the Federal Communications <br />Commission (FCC) to increase the rates charged for basic cable television service, installation <br />and equipment rental for the 2004 calendar year. The County's cable consultant, as part of the <br />Triangle J Cable Consortium, has evaluated the information provided by the cable company <br />according to FCC rules and regulations, and found its request to comply with FCC interpretation <br />of rates and conditions. The consultant's report and the rate order resolution are attached. <br />Orange County is composed of three federally identified cable television districts - NC 0276a <br />which serves 5753 cable households; NC 0276b, 29 cable households; and NC-0256, 724 <br />cable households. Under the recommended rate order, far example, the approved maximum <br />permitted Basic Service Tier rate for NC 0276a cable households, the largest cable television <br />district in Orange County, will be $12,25 per month, slightly below the Maximum Permitted Rate <br />(MPR). <br />Acceptance of the report and adoption of the rate order does not confer "agreement" <br />with the cable service rates, only that the "cable operator calculated rates consistent <br />with procedures prescribed by the FCC". The BOCC may be aware that the Durham <br />County Board of Commissioners did not approve its 2003 or 2004 rate order and is <br />challenging the cable increase in an action before the FCC. Should Durham County <br />