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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 5, 2000 <br />Action Agenda <br />Item No. ~-b <br />SUBJECT: Resolution Transferring Control of a Cable Television Franchise from Time <br />Warner Inc. to America Online <br />DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />1) Resolution No. 00 with Memorandum of INFORMATION CONTACT: <br />Understanding Regarding Open Access Albert Kittrell ,ext. 2300 <br />Business Practices Corintha Barber, ext. 2300 <br />2) 8/30/00 Letter for Bob Sepe TELEPHONE NUMBERS: <br />(Action Audits, LLC) Hillsborough 732-8181 <br />3) Bob Sepe Report Chapel Hill 968-4501 <br />(American Online, Inc., Time Wamer Durham 688-7331 <br />Inc., and MediaOne (AT&T) Request to Mebane 336-227-2031 <br />Transfer Control and Ownership among <br />and Between the Entities.) <br />PURPOSE: 1) To review a report on the transfer of ownership and control of Time Warner <br />to America Online (AOL). 2) Adopt resolution consenting to transfer of ownership and control <br />of Time Warner to AOL and MediaOne to AT&T. <br />BACKGROUND: On February 8, 2000 Time Warner notified the County that AOL and Time <br />Warner, Inc. would merge and submitted a completed FCC Farm 394. The Federal <br />Communications Commission allows the franchise authority (Orange County) to review the <br />legal, technical and financial qualifications of the new owner. The County must approve or deny <br />the transfer resolution based upon findings of fact. <br />Bob Sepe, Consultant with Triangle J Council of Governments has reviewed FCC Farm 394 on <br />behalf of the County and submitted a report with findings and recommendations. The County <br />Cable TV Citizen Advisory Committee reviewed the report with Bob Sepe on April 13, 2000. <br />Since the May 16, 2000 Board of Commissioner Meeting, Dave Permar has revised the <br />proposed Resolution. Michael Patrick, Chair of the County Cable Committee will present the <br />report to the Board and Bob Sepe and Dave Permar will be in attendance to answer questions. <br />FINANCIAL IMPACT: N/A <br />RECOMMENDATION(S): The Manager recommends that the Board adopt a resolution <br />consenting to the transfer of control of a cable television franchise from Time Warner, Inc. to <br />AOL Time Warner, Inc. and a transfer of control from Media One Group, Inc. to AT8~T <br />Corporation. This would be subject to acceptance by AOL Time Warner, Inc. and AT8~T of <br />certain conditions on the approval as noted in the report. <br />