Orange County NC Website
Browse       Search
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 7, 2008 <br />Action Agend <br />Item No. ~-~ <br />SUBJECT: Resolution Providin Approval for Spin-Off of Time Warner Cable, Inc. <br />DEPARTMENT: County Manager's Office PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />A. Time Warner Cable, Inc. Request Gwen Harvey, Assistant County <br />and Supporting Documentation Manager, 245-2307 <br />B. Proposed Resolution <br />PURPOSE: To present for adoption a resolution providing approval for the spin-off of Time <br />Warner Cable, Inc. from its parent company, Time Warner, Inc. <br />BACKGROUND: Section 16, "Transfer of Ownership or Control", of the Orange County Cable <br />Franchise Ordinance calls for Time Warner Cable, Inc. to notify the County "of any actual or <br />proposed change in or transfer of, or acquisition by any other party of control" and that the <br />County "may inquire into the legal, financial, and technical qualifications of the prospective <br />controlling party". <br />The County received notification from Time Warner Cable in mid-June 2008 of plans to effect a <br />completion separation of Time Warner Cable, its cable television business unit, from Time <br />Warner, Inc. by the end of the calendar year. (See attachment A) The spin-off must receive a <br />favorable IRS ruling as well as other regulatory approvals and local franchise clearances. The <br />120-day period for statutory review is scheduled to expire on October 11, 2008. <br />As apre-condition to BOCC consideration, County staff and Action Audits, the Triangle J <br />Council of Governments Cable Consortium consultant, have met with Time Warner Cable <br />representatives and agreed on a process whereby the cable operator will provide mapping <br />information that allows the County to verify and monitor compliance with the cable service <br />extension requirement defined in the franchise ordinance. The section of the franchise <br />ordinance is excerpted below: <br />"The Grantee shall extend service within the County to any household where the number <br />of occupied homes and homes for which certificates of occupancy have been issued <br />equals at least eighteen (18) homes per mile with the measurement starting from the <br />closest usable active point on the Cable System. The Grantee shall apply for all <br />