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Home My WebLink AboutAgenda - 06-05-1995 - V-C ti 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda ACTION AGENDA ITEM ABSTRACT Item No._V-Q- Meeting Date: June 5, 1995 SUBJECT: Resolution Adjusting Cable TV Equipment and Installation Rates DEPARTMENT: Manager's Office PUBLIC HEARING YES: NO: X ATTACHMENT(S): INFORMATION CONTACT: Resolution/Order Approving Adjustments for Equipment& Installation Rates TELEPHONE NUMBER- Hillsborough 732-8181 Chapel Hill 9684501 Mebane 227-2031 Durham 688-7331 PURPOSE: To adopt a resolution/order approving Adjustments for Cable TV Equipment and Installation Rate Adjustment for Cablevision Industries(CVI). BACKGROUND: On May 1, 1995, the Board approved Time Wamers' (Cablevision) Cable TV Equipment and Installation Rate Adjustments. Increases were within the benchmark established by the FCC. As permitted under the FCC, the cable operators can request adjustments to equipment and installation rates once a year. On March 23, 1995 Cablevision Industries(CVI) submitted forms requesting adjustments. Bob Sepe, Cable Consultant for Triangle J Council of Governments, has reviewed the rate adjustments and recommends that the Board approve the adjustments. The Consultants findings are included in the attached Resolution/Order approving Adjustments. CVI is not seeking an adjustment in the rates it currently charges for equipment and installation within Orange County. However, the consultants recommend that a$5.00 tier change charge be reduced to the maximum permitted rate allowed by the FCC $3.00. RECOMIKENDATION(S): The Manager recommends adoption of Resolution/Order Approving Adjustments For Equipment and Installation Rates. 2 r eitiy Of 6Raleigh 9Yorth earolina FCC-1205 EQUIPMENT & INSTALLATION RATE REVIEW CABLEVISION INDUSTRIES, CVI ORANGE COUNTY, NC-0256 May 11, 1995 REPORT TO: Albert Kittrell, Assistant County Manager BY: Robert Sepe, Information Access Manager REVIEW: Cable television equipment and installation rate adjustments (FCC-1205] Following is the Equipment and Installation Costs filing submitted by Cablevision Industries Corp., d/b/a CVI [Alert Cable]. Cable operators are required to file FCC-1205 forms on an annual basis. Such filings allow cable operators the opportunity to adjust equipment and installation rates, charged subscribers, based on capital and labor cost adjustments realized during the previous fiscal year, 1994. Cablevision Industries serves unincorporated areas of Orange County and several incorporated towns within the county. The Hillsborough/Carrboro headend distributes signals to subscribers in unincorporated Orange County, the towns of Carrboro and Hillsborough. These corrvnunities constitute one cost center for CVI within Orange County. Plant, labor and costs are shared among these communities, although each one requires a separate franchise. a. Orange County area: Hillsborough [NC-0068], Orange County [NC- 0256], Carrboro, [NC-0130]. Total subscriber base: 5,220. Cable operators are allowed to "update" maximum permitted rates charged subscribers for equipment and installation annually. The proposed rates that follow, if approved, will become effective in August, 1995. Also, the operator must provide a 30-day notice to subscribers of any impending rate increases. OFFICES-222 WEST HARGETT STREET-POST OFFICE BOX 590-RALEIGH,NORTH CAROLINA 27602 Recycled Paper 3 AGGREGATED SERVICE AREA: FCC-1205 COMPILATION In 1994, CVI organized its distribution plant into cost centers as described on the previous page. The service and cost districts unified the subscriber bases of incorporated and unincorporated communities within Orange County . Cablevision Industries is not seeking an adjustment in the rates it currently charges for equipment and installation within Orange County. However, it is seeking to reaffirm a$5.00 tier change charge, which is $3.00 above the maximum permitted rate allowed by the Federal Communications Commission. The company's tier change rate may not exceed the maximum permitted rates approved by the FCC, although the company may charge a lesser amount. See Tables A and B for a comparison of 1994 and 1995 proposed rate adjustments for Orange County. Table A Maximum Permitted Equipment and Installation Rates Proposed Adjustments .! ` g.......... .... <:::.::::.::::.:::::::::. Hourly Service Charge $32.05 $32.05 ($0.00) Installation of Unwired Home $50.07 $50.07 $0.00 Installation of Prewired Home $20.03 $20.03 $0.00 Installation of Additional $10.00 $10.00 $0.00 Connection During Install Installation of Additional $20.03 $20.03 $0.00 Connection with Separate Trip Other Services Q HSC $32.05 $32.05 $0.00 Remote Control 1 $0.23 $0.23 $0.00 Converter - Non-addressable $1.52 $1.52 $0.00 Changing Tiers $5.00 $5.00 $0.00 4 Table B Maximum Permitted Equipment and Installation Rates Proposed Adjustments .............. ..... ........ .......... ........... .... .......... ............ . .... ........ ................. ........ ......... ............... ... .. X: . .. ....... ..... .:::::::::::::::•:::::.:::::::...; . ........... .... .............. .................. ............ .............. .. ................ .... .. ................ . . .... .......... .. ..... ... ...... ...... ....... ........... ...... ............... ...... -U .............................. .................. .............. P ft ...... . ...... ................ ............................ ................. .. . .... ........... ..................... ........... ........ . ... ..ix: :.X..... ...... . ...... 5X. ................. . . .. ... ............. ... ........... ........................ ......... ....... ....... .......... ...... .......... ..... ........:.:.:, .., -X.. ... ........... . ....... ................. Nominal Charge for Changing $2.00 $5.00 $3.00 Service Tiers I I This fee is customarily referred to as an upgrade or downgrade charge. The maximum nominal rate set by the FCC is a value less than$2.00. CVI did not include any compelling information to support a rate greater than that rate permitted by the FCC. Subscribers who upgrade or downgrade from or to a premium service, such as HBO or Showtime, are charged a fee for entry of the appropriate authorization code into a computer. This action either authorizes or disables encrypted/scrambled services. RECOMMENDATION The consultants recommend that the County approve the equipment and installation rates proposed by Cablevision Industries, and approve a "tier change" rate commensurate with that of FCC's recommended rate. PROCEEDING The FCC regulatory rules require the franchise authority to issue an order, based upon a finding of fact, regarding the approval or denial of the cable operator's FCC-1205 rate submittal. The rules require that the franchise authority adopt this report and the public be granted an opportunity to comment. It is suggested that the public comment period coincide with a regularly scheduled county commission meeting. CHRONOLOGY 1) Public Notice: The County will advertise, in local media, the date, time, and location of the regularly scheduled commission meeting and public comment period on CVI's FCC-1205 rate filing. 2) Written Report: A report on CVI's filing will be presented to the County during a regularly scheduled board meeting. 5 Y 3) Public Comment: The County must allow the public an opportunity for comment after the report has been presented by staff or consultants. 4) Consider & Adopt Report: The County will be asked to consider and adopt the consultant's report as its own, as stated in FCC rules. 5) Execute Order: After adopting the report, the County must issue an order in three original copies, approving or denying, based upon a finding of fact, CVI's FCC-1205 rate filing request. 6) Distribute Order: Provide original executed copies to CVI [via certified mail], the consultants, and place an original in the County's permanent file. Though the public comment period is intended to allow interested parties the opportunity to comment on the cable operator's rate filing, it is not constrained by formal advertising and notification rules associated with municipal zoning issues. 6 J STATE OF NORTH CAROLINA ORANGE COUNTY BEFORE ORANGE COUNTY IN THE MATTER OF: ) RESOLUTION/ORDER APPROVING ADJUSTMENTS Review of proposed Equipment and ) FOR EQUIPMENT AND Installation rate adjustments [FCC-1205] ) INSTALLATION RATES for Cablevision Industries, d/b/a/CVI ) [Alert Cable], serving Orange County, ) NC-0256. ) BY ORANGE COUNTY: WHEREAS, on March 23, 1995, Cablevision Industries Corporation submitted and Equipment and Installation Costs [FCC-1205] filing for Regulated Cable Services for Orange County; and , WHEREAS, on May 11, 1995, Orange County received a report from its consultants indicating that CVI's said filing was in compliance with Federal Communications Commission procedures, allowing for the adjustment of equipment and installation rates. IT IS A FINDING: That Cablevision Industries Corporation has justified the maximum permitted equipment and installation rates, excluding the charge for changing service tiers, for subscribers served in Orange County. e 7 IT IS THEREFORE ORDERED: That Cablevision Industries Corporation's maximum permitted equipment and installation rates for subscribers in Orange County are approved as follows: Hourly Se7Unwired ge $32.05 Installation of Home $50.07 Installation of Prewired Home $20.03 Installation of Additional $10.00 Connection During Install Installation of Additional $20.03 Connection with Separate Trip Remote Control 1 $0.23 Converter-Non-Addressable $1.52 Changing Tiers $2.00 ISSUED BY RESOLUTION/ORDER OF ORANGE COUNTY This the day of 1995. ATTEST: CHAIRMAN: Clerk Via U.S. Postal Service, Certified Mail xc: CVI