Agenda - 04-01-2003-9b - Laserfiche WebLink

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Additionally, the recommended rate order amends the 2002 rate order previously adopted by the BOCC that denied TimeWarner's (TW) 2002 Hourly Service Charge (installation fee). The Board found the TW 2002 26% rate increase unreasonable and denied the rate increase. TW appealed the action to the FCC. The FCC issued a decision (Smithfield) that stated that the Local Franchise Authority could not deem a rate increase unreasonable by its magnitude alone. Therefore, the 2002 26% rate increase and subsequent 2003 increase are permissible. As a result, it is necessary for the BOCC to amend the earlier action and find the 2002 rates for cable equipment, installation, and hourly service charges to be in compliance with federal regulations. The Rate Order preserves County regulatory authority and upon the discovery of new evidence or a subsequent FCC ruling that reverses the FCC's Smithfield decision, the County has the ability to reach back and order a rate reduction and refund. Should the Board decide not to approve the Rate Order, the TW proposed 2003 rates become effective by default and the County forfeits its future refund authority. FINANCIAL IMPACT: There is no financial impact to the County in the approval of the consultant's report and adoption of the proposed rate order. RECOMMENDATION(S): The Manager recommends that the Board accept the consultant's report and adopt the 2003 rate order for cable services in unincorporated Orange County.