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HomeMy WebLinkAboutAgenda - 02-12-1996 - VIII-A f 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. V-=-A ACTION AGENDA ITEM ABSTRACT Meeting Date: February 5, 1996 SUBJECT: Cable TV Franchise Renewal -------------------------------------------------------------------- DEPARTMENT: County Manager PUBLIC HEARING YES: X NO: -------------------------------------------------------------------- ATTACHMENT(S) : INFORMATION CONTACT: Albert Kittrell Summary of Proposal TELEPHONE NUMBER- Hillsborough -732-8181 Chapel Hill -968-4501 Mebane -227-2031 Durham -688-7331 -------------------------------------------------------------------- PURPOSE: To receive citizen comments on Cable TV Franchise Renewal Proposal from Time Warner. BACKGROUND: On October 2, 1995 the Board approved the Request for Proposal for Cable-Telecommunication Distribution System Infrastructure. Time-Warner responded to the RFP on December 21, 1995 . The County Cable Committee along with Triangle J Council of Governments Cable Consultants are currently reviewing the large technical document . The Cable Committee would like to receive comments from the public on the responses before recommending that franchise renewal negotiations begin with Time Warner. RECOMMENDATION(S) : The Manager recommends that the public hearing remain open to receive written comments until February 12, 1996 . t 2 REQUEST FOR PROPOSAL Miniznum Standards for CABLE-TELECOMMUNICATION DISTRIBUTION SYSTEM INFRASTRUCTURE 1. The franchise period shall be negotiable depending on agreements on the proposals and the financial investment of the company. Due to the heavy capital investment projected to upgrade the Orange County cable television system, a minimum franchise term of twenty years is requested. 2. Service must be extended to all new subdivisions, existing residential commercial- industrial areas when the average density of platted or occupiable dwelling communities exceeds 15 homes per miles of cable. Given the market potential of unincorporated Orange County and the high cost of building cable television plant, extending service to residential areas lower than 25 potential customers per mile is not economicall y feasible and would impose a heavy cost burden on Orange County cable customers. Residents living in areas of the County with density lower than 25 homes per mile have a wide array of options for receiving video programming. Indeed many residents of Orange County have installed satellite dishes from competing video providers. 3. The plant will be rebuilt within a period of two or three years from the granting of the franchise. The primary distribution system should incorporate fiber-optic cable and may rely upon coaxial cable for signal transportation to the end user. The distribution system should have potential for additional "channel" capacity. The system proposed by Time Warner will have the above capability. 4. The cable-telecommunication system must be able to provide at least 750 MHz of bandwidth and a combination of analog M and digital [100] channels. The system proposed by 77me Warner will have a capacity of 750 MHZ of which 200 MHZ is expected to be allocated to digital distribution. 5. A high quality signal (meeting or exceeding federal standards) must be available on all active channels with a high degree of reliability. The system proposed by Time Warner will have the above capability. t 3 6. There must be an emergency override capability on all channels. The company must g Y l?� h' Pant be in compliance with Federal regulations concerning emergency override and will cooperate with the Orange County Division of Emergency Services to provide timely emergency information. The system proposed by Time Warner will include an emergency alert system which will conform to the requirements established by the FCC. 7. The Applicant is required to interconnect with other cable-telecommunication systems serving Orange County to permit all cable customers in Orange County to view government, education and public access and local origination channels in real time. Time Warner will make a good faith effort, subject to the availability of an interconnecting signal tnanspottation network controlled by Time Warner and channel capacity, to interconnect the County system with other adjacent Time Warner systems to distribute regional programs. 8. There must be a high level of customer service which must meet or exceed FCC and industry [NCTA] requirements. Time Warner currently exceeds both the FCC and NCTA customer service standards in its Orange County cable television system and will continue to meet these requirements. 9. The company must perform market studies prior to dropping program services. Copies of the studies are to be shared with the County. Time Warner considers many factors when making deciswns related to its program offerings. Some of these factors are: cost, contractual constraints, copyright, market demographics and competitive forces. Individual programming service offerings are at the sole discretion of the cable company and are based upon availability, cost, consumer acceptance and other market factors. 10. The Company must provide 5 public access, government and educational channels. The cable company shall be expected to contribute equipment adequate to support public, government and education access program activities. In the event that a government, public access or educational channel is fully used [80% prime time], the franchisee is required to provide an addition channel within 180 days, subject to availability, upon notice from the franchise authority. Centrally located production and post production facilities shall be located in Orange County and provide full access to the public. In lieu of operating a public access facility, the Applicant may choose to provide financial support to a central PEG access facility. - j .. Time Warner is wiling to negotiate with the County to continue to make public access channels available to the citizens of Orange County. Negotiations and the 5 4 treatment of costs related to the provision of PEG channels, equipment or facilities will be subject to the provisions of the FCC's recently released Thirteenth Order on Reconsideration (copies of selected pages are attached EXHIBIT B) We have also attached a copy of a legal opinion from a knowledgeable law firm on the FCC rules pertaining to government imposed costs. EXHIBIT C 11. The Company agrees that no restrictions shall be placed upon the PEG access provider which would serve to prohibit the provider from securing corporate underwriting, or other revenues or fees used to support PEG access operating costs. Corporate underwriting of public access programs is currently permitted, however, any commercial use including advertising, igfomercials or solicitation of funds is prohibited. 12. The Company shall provide cable connections and service to all Orange County government facilities, including schools without charge. Time Warmer will provide one free cable television drop to each primary and secondary school and County government owned facility which is located within a 200 foot cable distance from an existing cable adequate to provide signal to the location. 77me Warner will not be responsible for any wiring within the interior of any such facility. 13. It is suggested that the Company's basic program tier include area broadcast television stations as required by the Federal Communications Commission rules, educational and informational programming to include federal government legislative deliberations, public access, educational and government programming; expanded basic should offer 24 hour weather and news services, sports and entertainment, financial news, and cultural programming. A list of possible prospective programming services is attached in response to section VI. EXHIBIT E. This list is submitted for infornuation purposes only. The cable company reserves its right to change or modyy programming, channel placement or tier structure in accordance with applicable FCC regulations. 14. The Company must survey Orange County residents on a regular basis, every five years at a minimum to ascertain community telecommunication and program interests. The emerging communication requirements of the Orange County citizens should guide the company to add technology to meet these needs. 77me Warner considers many factors when making decisions related to its program offerings and effective use of technology. 7Tme Warner has a proud history of being the world's leading entertainment company and as such will continue to strive to respond to marketplace demand for new information and entertainment choices.