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HomeMy WebLinkAboutAgenda - 12-05-94-IX-B 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. .1)(-$ ACTION AGENDA ITEM ABSTRACT Meeting Date: December 5, 1994 SUBJECT: Cable TV Services Contract with Triangle J Council of Governments DEPARTMENT: County Manager PUBLIC HEARING YES: NO: X ATTACHMENT(S) : INFORMATION CONTACT: Albert Kittrell Agreement TELEPHONE NUMBER- Hillsborough -732-8181 Chapel Hill -968-4501 Mebane -227-2031 Durham -688-7331 PURPOSE: To consider entering into an agreement with Triangle J Council of Governments to provide cable rate regulation administration and franchise renewal services. BACKGROUND: At the October 19, 1993 Commissioners' Meeting, the Board entered into a contract with TJCOG to provide rate regulation administration at a cost of approximately $3,860. In June 1994 TJCOG, with the assistance of a consultant, reviewed the Cable TV rate from Time Warner (Cablevision) and Cablevision Industries (CVI) . On September 6, 1994 the Board approved the rates as being consistent with FCC standards as recommended by TJCOG. In September 1994 TJCOG's new Executive Director TJCOG along with the TJCOG Cable TV Consortium (composed of Region J local government managers and assistant managers) began developing a new agreement that would include rate regulation, franchise renewal and other cable services. On November 17, 1994 the TJCOG Cable TV Consortium finalized the attached agreement. TJCOG through a consultant will provide for Orange County and other local governments in Region J a review of cable rates; conduct Cable TV franchise renewal activities; perform 2 technical audits of the cable companies distribution system; and represent Orange County' s interest in cable television matters. Most of the local governments in Region J have tentatively agreed to contract with TJCOG for Cable TV services. The fee will be $1 .25 per subscriber (which will be paid to the Consultant by TJCOG) and $. 18 to TJCOG for administrative and management fees. The cost will be $1.43 per subscriber. The County' s total cost per year will be $8,910.33 ($1.43 X 6,231 subscribers) . Cablevision has approximately 5,488 subscribers and CVI has 743. The agreement is for an initial term of one year and can be automatically renewed for an additional year until 1996. The County can terminate upon 30 days notice and TJCOG Cable TV Consortium will review the terms of the agreement and the performance of TJCOG' s Cable TV Consultant annually. Funds were allocated in the 1994-95 budget for Cable TV Administration. RECOMMENDATION(S) : The Manager recommends that the Board approve a Cable TV Services Agreement with TJCOG for consultant services at a rate of $1.43 per Cable TV subscriber in the unincorporated area of the County. 3 TRIANGLE J COUNCIL OF GOVERNMENTS W o r l d 100 Park Drive, P.O,Box 12276 CI a s S Research Triangle Park,NC 27709 R e g i o n 919,549.0551 FAX:919.549.9390 Triangle J Council of Governments Cable Television (TJCOG CATV) Franchise Renewal Services Agreement This agreement between the Triangle J Council of Governments (TJCOG) and the County of Orange sets forth the scope of work and the fee structure for services in order to meet the franchise renewal requirements as set forth in the Cable Communications Policy Act of 1984 (1984 Cable Act) and the Cable Television Consumer Protection and Competition Act of 1992 (1992 Cable Act) . The purpose of the TJCOG CATV Franchise Renewal Services program is to develop for each contracting unit of government a CATV franchise agreement that will ensure that its CATV system will provide its subscribers state-of-the- art cable television service throughout the life of the franchise . Issues addressed will include, but not be limited to, channel capacity (bandwidth) , reception facilities (headend) , distribution system (quality and density) , technical standards, customer service standards, interconnections, and public/educational/governmental access . The scope of work provided in this agreement specifies the actions that will be undertaken to ensure that each contracting unit of government will be provided with the proper information and recommendations to award/renew the franchise for its CATV system in an effective and cost- efficient manner. 1 SCOPE OF WORK TJCOG has entered into a contract with the City of Raleigh to provide cable television administration services through its Information Services Department : Information Access Division. Rate regulation and refranchise assistance will be provided to local governments through a regional collective effort under the auspices of TJCOG. TJCOG will serve as project manager of the regional program and provide staff and administrative assistance to the program. The City of Raleigh, Information Access Division will provide the following services : 1 . Brief elected and appointed local government officials on the scope of work and the impact of the 1984 and 1992 Cable Acts on the franchise renewal process . 2 . Advise local governments of their rights and obligations under the law and franchise provisions . 3 . Evaluate and recommend minimum standards for assessing operator performance and community needs . 4 . Perform technical evaluations of the existing cable systems, with special emphasis on provisions for and maintenance of state-of-the-art technology; providing for: a) a definition of state-of-the-art-technology, b) a feasible timetable for achieving and maintaining state-of- the-art-technology, and c) testing and inspection procedures which can be implemented by local government employees and required by the franchise . 5 . Interconnection of cable systems will be facilitated, providing for: a) an examination of the technical aspects of interconnection between adjacent systems to achieve public purposes and b) an explanation of the cost issues surrounding multiple public, education, and/or government access channels (PEG] . 2 5 6 . [Re-] Franchise agreements encompassing local government ' s objectives will be completed, which will include : use of state-of-the-art parameters; interconnection of systems, along with public, education and government access channels [PEG] , compliance with density mandates; and responsive customer service . A public hearing will be scheduled to gather public comment regarding the operator ' s history of past performance relating to service and interconnection requirements . 7 . Advise and assist local governments with cable operator renewal negotiations . Consultants shall participate on the negotiating team to provide advice as required. 8 . Initial rate review [benchmark or cost of service, based on indicated operator preference] and appropriateness of basic tier, premium tier, and a-la-carte groupings will be conducted. 3 • 6 FEES 1 . For local government units that are members of TJCOG, service fees associated with this contract are as follows : Consulting services by the City of Raleigh Information Access Division will be $1 . 25 per subscriber (based on an 800 subscriber minimum) per local government unit . Management services by TJCOG will be $ . 18 per subscriber per local government unit . 2 . Fees for consulting services and management services will be paid annually. Initial fees are due and payable within thirty (30) days of the execution of this agreement by the governing board of the local government unit . Subsequent annual fees-= will be due on the anniversary date of this agreement . 3 . Billing for all services associated with this agreement will be done by TJCOG. 4 . With the approval of TJCOG and the consultant, local government units with less than 800 cable TV subscribers will have the option of joining with another local government unit that is a participant in the regional program in order to avoid the minimum subscriber fee. 5 . Local government units that are not members of TJCOG will pay the consulting and management fees set out in #1 above, plus a participation fee of $1000 and an additional $ . 10 per subscriber. 6 . This agreement does not provide for legal services which may be necessary should an order issued by a local government unit be challenged by a cable operator. At the election of the local government unit the City of Raleigh Information Access Division will provide external legal services at cost ($225 per hour plus expenses at 15%) . 4 MISCELLANEOUS 1 . Term of Agreement . This agreement shall be effective upon execution by both parties and shall run for an initial term of one year. This agreement shall be automatically renewed on the execution date, 1995 and 1996 for additional on year terms, unless terminated as provided herein. 2 . Indemnity. The County of Orange agrees to indemnify and save harmless TJCOG, its agents and employees from and against any and all loss, costs, damages, expense and liability arising from the provision of services pursuant to the terms of this agreement . 3 . Termination by TJCOG. TJCOG may terminate this agreement at any time by giving written notice to the other party of such termination and specifying the date thereof, at least thirty (30) days before the effective date of such termination. In that event, all unexpended fees collected and all finished or unfinished documents and other materials produced or collected by TJCOG shall be returned to the County of Orange . 4 . Termination by the County of Orange . The County of Orange may terminate this agreement at any time by giving written notice to the other party of such termination and specifying the date thereof, at least thirty (30) days before the effective date of such termination . In that event, all finished or unfinished documents and other materials produced or collected by TJCOG shall be returned to the County of Orange. However, in recognition of the fact that TJCOG will contract with CATV consultants and that TJCOG will be expected to continue managing the work of the CATV consultants in reliance upon receipt of said fees, no fees paid pursuant to this agreement shall be refunded. 5 . Assignment . Neither party may assign any rights or delegate any duties hereunder without the express prior written consent of the other party, except that TJCOG maintains the right to engage the services of another consultant if the City of Raleigh is, for any reason, unable or unwilling to complete the scope of work in a satisfactory manner. 5 8 6 . Entire Agreement . This writing contains the entire agreement between the parties . No representations were made or relied upon by either party other than those that are expressly set forth herein. This agreement may not be amended or modified except in a subsequent written agreement duly executed by each of the parties . 7 . Controlling Law. The validity and interpretation and performance of this agreement shall be controlled by and construed under the laws of the State of North Carolina. This agreement is executed by the authorities of their respective governing bodies to be effective on the day of , 1994 . Attest : County of Orange by Clerk Chairman Attest : Triangle J Council of Governments O i ?1,$ L b President 6 • tiy-- 8 TRIANGLE • World. 100 Park Drive, F.O.Box 12276 C l a s s Research Triangle Park, NC 27709 R e g i o n- 919.549.0551 Fax:919.549.9390 Triangle J Council of Governments Cable Television (TJCOG CATV) Franchise Renewal Services Agreement This agreement between the Triangle J Council of Governments (TJCOG) and the County of Orange sets forth the scope of work and the fee structure for services in order to meet the franchise renewal requirements as set forth in the Cable Communications Policy Act of 1984 (1984 Cable Act) and the Cable Television Consumer Protection and Competition Act of 1992 (1992 Cable Act) . The purpose of the TJCOG CATV Franchise Renewal Services program is to develop for each contracting unit of government a CATV franchise agreement that will ensure that its CATV system will provide its subscribers state-of-the- art cable television service throughout the life of the franchise. Issues addressed will include, but not be limited to, channel capacity (bandwidth) , reception facilities (headend) , distribution system (quality and density) , technical standards, customer service standards, interconnections, and public/educational/governmental access. The scope of work provided in this agreement specifies the actions that will be undertaken to ensure that each contracting unit of government will be provided with the proper information and recommendations to award/renew the franchise for its CATV system in an effective and cost- efficient manner. 1 SCOPE OF WORK TJCOG has entered into a contract with the City of Raleigh to provide cable television administration services through its Information Services Department: Information Access Division. Rate regulation and refranchise assistance will be provided to local governments through a regional collective effort under the auspices of TJCOG. TJCOG will serve as project manager of the regional program and provide staff and administrative assistance to the program. The City of Raleigh, Information Access Division will provide the following services: 1. Brief elected and appointed local government officials on the scope of work and the impact of the 1984 and 1992 Cable Acts on the franchise renewal process. 2 . Advise local governments of their rights and obligations under the law and franchise provisions. 3 . Evaluate and recommend minimum standards for assessing operator performance and community needs. 4 . Perform technical evaluations of the existing cable systems, with special emphasis on provisions for and maintenance of state-of-the-art technology; providing for: a) a definition of state-of-the-art-technology, b) a feasible timetable for achieving and maintaining state-of- the-art-technology, and c) testing and inspection procedures which can be implemented by local government employees and required by the franchise. 5. Interconnection of cable systems will be facilitated, providing for: a) an examination of the technical aspects of interconnection between adjacent systems to achieve public purposes and b) an explanation of the cost issues surrounding multiple public, education, and/or government access channels [PEG] . 2 6. [Re-] Franchise agreements encompassing local government's objectives will be completed, which will include: use of state-of-the-art parameters; interconnection of systems, along with public, education and government access channels [PEG] , compliance with density mandates; and responsive customer service. A public hearing will be scheduled to gather public comment regarding the operator's history of past performance relating to service and interconnection requirements. 7 . Advise and assist local governments with cable operator renewal negotiations. Consultants shall participate on the negotiating team to provide advice as required. 8 . Initial rate review [benchmark or cost of service, based on indicated operator preference] and appropriateness of basic tier, premium tier, and a-la-carte groupings will be conducted. 3 FEES 1. For local government units that are members of TJCOG, service fees associated with this contract are as follows: Consulting services by the City of Raleigh Information Access Division will be $1. 25 per subscriber (based on an 800 subscriber minimum) per local government unit. Management services by TJCOG will be $. 18 per subscriber per local government unit. 2 . Fees for consulting services and management services will be paid annually. Initial fees are due and payable within thirty (30) days of the execution of this agreement by the governing board of the local government unit. Subsequent annual fees will be due on the anniversary date of this agreement. 3 . Billing for all services associated with this agreement will be done by TJCOG. 4 . With the approval of TJCOG and the consultant, local government units with less than 800 cable TV subscribers will have the option of joining with another local government unit that is a participant in the regional program in order to avoid the minimum subscriber fee. 5. Local government units that are not members of TJCOG will pay the consulting and management fees set out in #1 above, plus a participation fee of $1000 and an additional $. 10 per subscriber. 6. This agreement does not provide for legal services which may be necessary should an order issued by a local government unit be challenged by a cable operator. At the election of the local government unit the City of Raleigh Information Access Division will provide external legal services at cost ($225 per hour plus expenses at 15%) . 4 MISCELLANEOUS 1. Term of Agreement. This agreement shall be effective upon execution by both parties and shall run for an initial term of one year. This agreement shall be automatically renewed on the execution date, 1995 and 1996 for additional on year terms, unless terminated as provided herein. 2 . Indemnity. To the extent permitted by law, the County of Orange agrees to indemnify and save harmless TJCOG, its agents and employees from and against any and all loss, costs, damages, expense and liability arising from the provision of services pursuant to the terms of this agreement. 3 . Termination by TJCOG. TJCOG may terminate this agreement at any time by giving written notice to the other party of such termination and specifying the date thereof, at least thirty (30) days before the effective date of such termination. In that event, all unexpended fees collected and all finished or unfinished documents and other materials produced or collected by TJCOG shall be returned to the County of Orange. 4 . Termination by the County of Orange. The County of Orange may terminate this agreement at any time by giving written notice to the other party of such termination and specifying the date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished or unfinished documents and other materials produced or collected by TJCOG shall be returned to the County of Orange. However, in recognition of the fact that TJCOG will contract with CATV consultants and that TJCOG will be expected to continue managing the work of the CATV consultants in reliance upon receipt of said fees, no fees paid pursuant to this agreement shall be refunded. 5. Assignment. Neither party may assign any rights or delegate any duties hereunder without the express prior written consent of the other party, except that TJCOG maintains the right to engage the services of another consultant if the City of Raleigh is, for any reason, unable or unwilling to complete the scope of work in a satisfactory manner. 5 6 . Entire Agreement . This writing contains the entire agreement between the parties . No representations were made or relied upon by either party other than those that are expressly set forth herein. This agreement may not be amended or modified except in a subsequent written agreement duly executed by each of the parties . 7 . Controlling Law. The validity and interpretation and performance of this agreement shall be controlled by and construed under the laws of the State of North Carolina. This agreement is executed by the authorities of their respective governing bodies to be effective on the - day of tf,= , t3 > , 1994 . pp Attest : County of Orange jAjAel 4 lerk ;%' C airman Oer Fr Attest : Triangle J Council-, of Governments President 6