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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 19, 2002 <br />Action Agenda <br />Item No. ~ Q <br />SUBJECT: Adoption of 2002 Rate Order and 2003 Tolling and Accounting Order <br />Regulating Cable Television in Unincorporated Orange County <br />DEPARTMENT: County Manager PUBLIC HEARING: (YIN) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Gwen Harvey, ext. 2300 <br />2002 Rate Order Michael Patrick, Cable Advisory <br />2003 Tolling and Accounting Order Committee <br />Bob Sepe, Cable Consultant <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 adoption of two orders ("resolutions") that address rate increases <br />requested by Time Warner Cable (TWC) for service, equipment, and installation in both 2002 <br />and 2003. The County as the franchise authority is certified by the Federal Communications <br />Commission (FCC) to regulate basic cable service, equipment and installation within <br />unincorporated Orange, and these orders are consistent with the exercise of that responsibility. <br />BACKGROUND: Two orders are attached for Board consideration. The orders were prepared <br />by Robert F. Sepe, the Triangle J Cable Consortium Consultant who assists Orange County <br />and other local governments. <br />2002 Rate Order -Approves 2002 rate for basic cable television service and denies Time <br />Warner's 26% increase in the hourly service charge for installation/service calls. TWC <br />proposed an hourly rate of $34.95 based upon national averaging. <br />The County received a report from its cable consultant, through the Triangle J Cable <br />Consortium, in February 2002 that recommended this action for all Consortium members. Time <br />Warner Cable requested that the County not act until the FCC had decided their appeal of the <br />Town of Smithfield's 2002 Rate Order. (Smithfield is also a member of the Consortium). The <br />Smithfield. Order denied the 26% rate increase on the same findings contained in the <br />consultant's report -that the rate increase was "excessive and unsubstantiated". To date, the <br />FCC has not issued a decision on the Smithfield Order and may not for some time. If the <br />County acts, TWC may choose to file an appeal, the same as in the Smithfield case. <br />Meanwhile, on October 1St, TWC moved ahead to file its 2003 rate increase request with the <br />County and all Consortium members. To proceed, the County should issue its 2002 Rate Order <br />