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expense. These capital improvements should bring greater efficiency and enhanced quality of <br />output to the current process under contract with The People's Channel, (TPC contract <br />expenses are budgeted at $27,140 for 2005-2006,) It is anticipated that TPC would continue as <br />the County's principal operator of the technical upgrades. <br />TWC would also be responsible for installing the associated cable in ground to transport the <br />signal. The total cost of technical equipment plus cable infrastructure to be undertaken by TWC <br />is estimated at $304,000, The BOCC may recall that back in the late 90s consultant estimates <br />were $200,000 per meeting facility to meet audio-visual capabilities alone. <br />Upon installation of the equipment and cable and activation of the digital channel, the <br />approximately 7200 cable subscribers in unincorporated Orange would see a "PEG Access <br />Fee" on their monthly cable bill, consistent with FCC rules, so that TWC can recover its total <br />capital cost estimated at $304,000 over a depreciation period of ten years, The PEG Access <br />Fee per cable subscriber is projected at 35 cents per month. <br />Next Steps <br />Following BOCC review and instructions to staff, it is anticipated that the proposed Cable <br />Franchise Ordinance/Agreement could be returned for the required 15t reading at the meeting <br />on October 18 and the 2"d reading on November 2. In the interim, the Cable Advisory <br />Committee would meet on October 5 and County staff would continue to work with TWC and <br />The People's Channel on preparations for "going live" with the broadcast of BOCC meetings <br />and other implementation measures. The projected timeframe for equipment and infrastructure <br />installation is within 8-9 months, <br />Importantly, upon execution of an approved Franchise Ordinance/Agreement, TWC intends to <br />extend cable television services for news weather and information to the Government Services <br />Center, enabling the County to discontinue its current contract for satellite services, <br />FINANCIAL IMPACT: Cable franchise revenues are calculated as an "annual fee of five <br />percent (5%) of the grantee's gross revenues", In Fiscal 2004-2005, Orange County received a <br />total of $247,065 in franchise fees from Time Warner Cable, <br />Under the proposed Franchise Ordinance/Agreement, cable subscribers in unincorporated <br />Orange County would see an additional charge on their monthly cable bill in order to amortize <br />the TWC capital investment associated with achieving PEG access, <br />RECOMMENDATION(S): The Manager recommends that the BOCC receive the report and <br />provide feedback and direction to the Cable Advisory Committee and staff.