HomeMy WebLinkAboutRES-1995-007 Resolution of BOCC Approving Transfer of Franchise From Time Warner Entertainment Co,, L.P., to TW Entertainment Advance/Newhouse Partnership NORTH CAROLINA RESOLUTION OF THE BOARD OF
COMMISSIONERS OF ORANGE
COUNTY APPROVING TRANSFER OF
FRANCHISE FROM TIME WARNER
ENTERTAINMENT COMPANY, L.P.
TO TIME WARNER ENTERTAINMENT-
ORANGE COUNTY ADVANCE/NEWHOUSE PARTNERSHIP
WHEREAS, Time Warner Entertainment Company, L.P. ( "TWE" ) is
the holder of a franchise (the "Franchise" ) to provide cable
television service for the County of Orange; and
WHEREAS, TWE with Advance Publications and Newhouse
Broadcasting Corporation will create a new joint venture cable
operation to be called "Time Warner Entertainment-Advance/
Newhouse Partnership; and
WHEREAS, the joint venture will be managed by TWE and be
two-thirds owned by TWE and one-third owned by Advance/Newhouse,
a partnership of Newhouse Broadcasting and Advance Publications
Inc. ; and
WHEREAS, the Time Warner Entertainment-Advance/Newhouse
Partnership will be bound by the terms and conditions of the
Franchise subject to applicable law.
NOW THEREFORE, be it resolved that, insofar as may be
necessary or advisable under the Franchise, transfer of the
Franchise and the cable television system operating pursuant to
the Franchise from TWE to Time Warner Entertainment-Advance/
Newhouse Partnership (including any necessary transfers through
one or more Time Warner entities) is hereby authorized and
consented to in all respects.
Upon motion of Commissioner Gordon , seconded by
Commissioner Crowther , the foregoing Resolution was adopted
this the 6th day of February , 1995 .
Ayes Commissioners Moses Carey, Jr_ , William L. Crowther, Alice M. Gordon,
Stephen H. Halkio is and nnn Willhnit
Noes
NUNE
I, Beverly Blythe, Clerk to the Board of Commissioners for
the County of Orange, North Carolina, DO HEREBY CERTIFY that the
foregoing is a true copy of so much of the proceedings of said
Board at a meeting held on Feb. 6 11 9� as relates in any way
to the adoption of the foregoing and that said proceedings are
recorded in Minute Book No. 29 of the minutes of said Board,
beginning at page and ending at page
WITNESS my hand and the seal of said County, this 15th day
of February , 19 95
CrePZ to Board o ommissioners
a
STATE OF NORTH CAROLINA
ORANGE COUNTY
BEFORE ORANGE COUNTY
IN THE MATTER OF: )
Review of Basic Cable Service, Equipment and ) ORDER APPROVING
Installation Rates and A La Carte Offerings ) COST OF SERVICE RATE
Filed by Cablevision Industries, )
Inc., d/b/a CVI, NC-0256 )
BY ORANGE COUNTY
WHEREAS, Orange County has been duly certified to regulate basic cable rates for CVI
within the jurisdiction of Orange County; and,
WHEREAS, on August 23, 1994, CVI filed its form FCC-1220/1205/1215 request for
cable service, equipment and installation rate approval; and,
WHEREAS, the current FCC benchmark rate for basic service for CVI applicable in
Orange County is $7.78, and CVI's current rate in effect in Orange County is $8.58; and,
WHEREAS, Orange County has retained the Triangle J Council of Governments, and the
City of Raleigh, as its rate consultants, and Triangle J Council of Governments and City of
Raleigh filed a report which has evaluated CVI's Cost of Service rate filing. Although CVI has
requested a rate of return of 15%, the FCC's current rules for Cost of Service rate filings create a
presumption that only a 11.25% rate of return on the rate base is reasonable. CVI's intangible
assets consititute 78.71% of its Orange County rate base and may not be appropriately
amoritized. Therefore, CVI's filing may not be justified for the full amount of its Cost of Service
rate. However, after adjusting for discrepancies, there appears to be adequate justification for a
Cost of Service rate equal to CVI's current basic rate; and,
WHEREAS, CVI has indicated that it is only requesting a Cost of Service rate for its
basic service at the same level as the current rate in effect, and will retain said rate in effect for a
minimum of two (2)years, except for adjustments for external expenses, such as program costs
and inflation.
NOW THEREFORE, Orange County makes the following:
FINDINGS OF FACT
1. CVI has justified an $8.58 rate per month for basic service under the FCC Cost of
Service rules.
2. CVI's equipment and installation rates conform to FCC reporting and computation
requirements and are reasonable.
3. CVI's a la carte submittal conforms with FCC reporting requirements and is
reasonable.
Based upon the foregoing, Orange County adopts the rate review report of its consultants
and CONCLUDES AS A MATTER OF LAW that CVI's current basic service, equipment and _
installation rates should be approved to remain in effect for two (2)years, excluding adjustment
for external expenses, such as: program costs and inflation, and that no refund liability should be
imposed. CVI's a la carte submittal should also be approved.
IT IS THEREFORE ORDERED that CVI's service, equipment and installation rates are
approved as follows:
Program Service Charge
Basic $8.58
II
Current Equipment Rates
Remote Control $0.24
Converter $1.50
Current Installation Rates
Hourly Service Charge $32.05
Unwired House $48.50
Pre-Wired House $19.40
A/Outlet at Installation $9.70
A/Outlet w/Truck Roll $19.40
Other Services at HSC $32.05
ISSUED BY ORDER OF ORANGE COUNTY
This the 6th day of February, 1995
ATTEST: CHAIRMAN:
CJ
County Clerk