HomeMy WebLinkAboutAgenda - 10-19-1993 - VIII-A 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No. vir-Pc
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 19, 1993
SUBJECT: Cable TV Resolution and Cable Television Services Agreement
DEPARTMENT: County Manager PUBLIC HEARING YES: NO: X
ATTACHMENT(S) : INFORMATION CONTACT: Albert Kittrell
I. Resolution Ext. 2300
II. Agreement TELEPHONE NUMBER-
Hillsborough -732-8181
Chapel Hill -968-4501
Mebane -227-2031
Durham -688-7331
PURPOSE: To consider adopting a resolution providing for the
regulation of cable TV rates. To consider entering into
an agreement with Triangle J Council of Governments
(TJCOG) to provide cable rate regulation administration.
BACKGROUND: At the September 21 Commissioners ' Meeting, the Board
approved the submission of a certification form to the
Federal Communication Commission authorizing the County
to regulate cable rates consistent with FCC regulations.
The attached resolution affirms that the County will
follow FCC Rate Regulations in its regulation of the
Basic Service Rates.
Also, at the October 13, 1993 Cable TV Citizen Advisory
Committee Meeting, TJCOG proposal to provide cable rate
regulation administration to the County was discussed.
The committee briefly discussed the other possible
options for providing this service including County
staff and non-governmental consultants. Discussions
revealed that TJCOG could provide qualified professionals
to perform the tasks at a reasonable cost. TJCOG will
also provide this service to most of the local govern-
ments in this region.
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TJCOG will provide Benchmark Rate Regulation
Administration Services (comparing and ensuring cable
operators ' rates are in line with standard rates
established by the FCC) . The estimated cost for
Cablevision' s rate review would be $ 3, 120 .50 and
$ 591 .50 for Cablevision Industries (CVI) .
TJCOG will provide Cost-Of-Service Rate Administration
(comparing the cable operators actual costs of providing
services to cable customers with cable rates) . Cost-Of-
Service rate reviews are more detail than Benchmarks
reviews. It is anticipated most cable operators ' rates
will not be reviewed under the Cost-Of-Service process.
TJCOG will provide this service for Cablevision at an
estimated cost of $ 5,741 and $ 683.00 for CVI .
The Cable TV Citizen Advisory Committee recommended
that the Board of Commissioners accept TJCOG proposal to
provide cable rate regulation administration.
RECOMMENDATION(S) : Manager recommends that the Board adopt the
resolution providing for the regulation of
cable rates, and enter into a cable television
services agreement with Triangle J Council of
Governments.
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DATE /evz7,4_4
ITEM
A RESOLUTION TO PROVIDE FOR THE REGULATION OF BASIC SERVICE
TIER RATES AND RELATED EQUIPMENT, INSTALLATION AND SERVICE
CHARGES OF CABLE TELEVISION SYSTEMS OPERATING IN ORANGE
COUNTY.
WHEREAS, on October 5, 1992 , Congress enacted the Cable
Television Consumer Protection and Competition Act
of 1992 which, provides the basic service tier
rates, and the charges for related equipment,
installation and services, of a cable television
system (herein-after, "Basic Service Rates and
Charges" ) shall be subject to regulation by a
franchising authority in accordance with regulations
prescribed by the Federal Communications Commission
(hereinafter the "FCC" ) ; and
WHEREAS, on April 1, 1993, the FCC prescribed such
regulations in the Report and Order, In the Matter
of Implementation of Sections of Cable Television
Consumer Protection and Competition Act of 1992 :
Rate Regulation, MM Docket 92-266, FCC 93-177
(released May 3, 1993) (hereinafter the "FCC Rate
Regulations" ) ; and
WHEREAS, the County of Orange (hereinafter, "the County" ) is
a franchising authority with the legal authority to
adopt, and the personnel to administer, regulations
with respect to the Basic Service Rates and Charges
of any cable television system operating in the
County, including without limitation, the systems
currently being operated by Cablevision and
Cablevision Industries (hereinafter "the Companies" )
pursuant to An Ordinance Granting A Franchise to
ATC, Inc . and An Ordinance Granting A Franchise to
Cablevision Industries (hereinafter "the
franchises) .
WHEREAS, the County desires to regulate the Basic Service
Rates and Charges of the Companies and any other
cable television system operating in the County and
shall do so in accordance with the FCC Rate
Regulations , notwithstanding any different or k`
inconsistent provisions in the franchises;
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NOW THEREFORE, BE IT RESOLVED BY THE ORANGE COUNTY
BOARD OF COMMISSIONERS, THAT:
1 . The County will follow the FCC Rate Regulations in
its regulation of the Basic Service Rates and
Charges of the Companies and any other cable
television system operating in the County
notwithstanding any different or inconsistent
provisions in the franchises; and
2 . In connection with such regulations, the County will
ensure a reasonable opportunity for consideration of
the views of all interested parties; and
3 . The County Manager is authorized to execute on
behalf of the County and file with the FCC such
certification forms or other instruments as are now
or may hereafter be required by the FCC Rate
Regulations in order to enable the County to
regulate Basic Service Rates and Charges; and
4 . This Resolution shall be effective immediately.
r4 ________
Moses Carey, Jr. , C fir/
Board of Commissio= s
ATTEST:
,40(1 / ..44gli_L,AE:,--
Beverly ythe, lerk
Board of Commissioners
Adopted: 4 A.e-c, //
7 , 1993
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TRIANGLE J COUNCIL OF GOVERNMENTS
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Class s 100 Park Drive,P.O.Box 12276
ITEIVIResearch Triangle Park,NC 27709
Region .77 919.549.0551 rnx:919.549.9390
Triangle J Council of Governments
Cable Television (TJCOG CATV) Services Agreement
This agreement between the Triangle J Council of
Governments (TJCOG) and Orange County
sets forth the scope of work and the fee structure for
services provided to the County
in order to meet the rate regulation administrative
requirements as set forth in the Cable Television Consumer
Protection and Competition Act of 1992 (1992 Cable Act) and
the Federal Communications Commission (FCC) Regulations .
The scope of work provided in this agreement specifies the
actions that will be undertaken by the TJCOG Special
Projects Director and a CATV consultant to ensure that each
contracting unit of government will be provided with the
proper information and recommendations to administer the
rate regulation of its CATV system and franchise in an
effective and cost-efficient manner.
The fee structure set forth in this agreement is designed so
that the cost of this service is funded at an average '60
percent by TJCOG dues from member governments and 40 percent
by fees-for-service, excluding the cost of the CATV
consultant . .
The fees-for-service for the TJCOG CATV services are a
factor of the number of CATV subscribers per franchising
authority as of September 1, 1993 . Therefore the greater
the number of subscribers, the greater the fee-for-service
percentage (maximum of 50 percent) .
It is estimated that the Special Projects Director will
spend 40 - 50 percent time on this CATV project depending on
the number of contracting units of government . The cost for
this time is calculated at $50 per hour. The CATV
consultant will be under a master contract with TJCOG.
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SCOPE OF WORK
The TJCOG Special Projects Director will:
1 . Be available to meet with the manager and/or the
governing board of the contracting unit of
government at a time mutually agreeable to discuss
the scope of work and the impact of the 1992 Cable
Act and the FCC Regulations .
2 . Review member government CATV franchise agreements
to determine how the agreements relate to the 1992
Cable T.V. Act requirements . Any deficiencies
would be corrected by submitting appropriate
ordinances to the member governments for adoption.
3 . Review the CATV records of the franchising
authority to determine whether or not records
required by the franchise agreement are being
provided by the cable operator.
4 . Identify and quantify the performance aspects of
the franchise agreement and determine level of
compliance of the cable operator.
5 . Prepare for adoption by and file on behalf of the
member governments the certification application
and other required submissions with the Federal
Communications Commission.
6 . Monitor the compliance of the cable operator with
providing the required data to the franchising
authority.
7 . Review the franchise fees by reviewing the cable
operator' s system of internal controls . The
franchise fee review serves a dual purpose . (1)
The review determines if the franchising authority
is collecting the appropriate amount of revenue
according to the franchise agreement and (2) the
review provides information necessary to
verify/correct any unreasonable benchmark
submittals .
8 . Prepare a written report to the unit of government
outlining its compliance findings as well as any
recommended changes which might facilitate the
administration of the franchise under the 1992
Cable Act and present the report to the manager
and/or the governing board at a time mutually
agreeable.
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9 . Administer the professional service contract
between TJCOG and the CATV consultant .
10 . Perform other related CATV services requested by
the contracting units of government in accordance
with the fee schedule set forth below.
The CATV Consultant will:
11 . Be available to meet with the governing board of
the contracting unit of government at a time
mutually agreeable to discuss the impact of the
1992 Cable Act or the scope of work or both.
12 . Review the basic rate schedule filed by the cable
operator for each certified unit of government :
a. If the information is to justify a rate
consistent with the FCC' s benchmark and is
complete and sufficient, this review will be
within the thirty day deadline imposed by the
1992 Cable Act . If the information submitted
with the rate schedule is incomplete or
insufficient for proper review, the CATV
Consultant will prepare the written notice
necessary for an extension of time under the
benchmark provisions to provide time for a
proper review.
b. If the information submitted with the rate
schedule is a cost-of-service filing the CATV
Consultant will prepare the written notice
necessary for an extension of time under the
cost-of-service provisions to provide time
for a proper review.
13 . Prepare a written opinion on whether the rate
schedules meet the test of the FCC' s reasonable
rate standards . The Consultant will be available
to present his findings to the unit of government
at a time mutually agreeable to the unit and the
Consultant .
14 . Perform other related services requested by
contracting units of government in accordance with
the fee schedule set forth below.
4
FEES
1 . For services by the TJCOG Special Projects
Director as set forth in items 1 through 9 above,
the fee will be $500 per CATV operator plus $1 . 00
per CATV subscriber with a not-to-exceed cost of
$6000 per operator for the contracting unit of
government . TJCOG will waive for member
governments the portion of the fee equal to $500
per CATV operator plus $.50 per CATV subscriber
(not to exceed $3000 per operator) as credit for
TJCOG dues.
2 . For services by the CATV consultant to review a
proposed rate schedule consistent with the FCC
benchmark for rates, as set forth in items 11, 12a
and 13 above, the fee charge will be $500 per
contracting unit of government . If there
is more is more than one cable operator in the
franchising authority' s jurisdiction, this fee
will be charged per operator if more than one
proposed rate structure is to be reviewed.
3 . For services by the CATV consultant to review
cost-of-service proposed rate schedules, as set
forth in items 11, 12b, and 13 above the fee
charged will be a base of $500 plus $ .50 per
subscriber with a not-to-exceed cost of $3000 . If
there is more than one cable operator in the
franchising authority' s jurisdiction, this fee
will be charged per operator if more than one
proposed rate structure is to be reviewed.
4 . For any other CATV services by either the TJCOG
Special Projects Director or the CATV consultant,
not specified in the agreement, and requested by
the contracting units of government, as set forth
in items 10 and 14 above, compensation will be at
an hourly rate of $50 plus local travel by
personal vehicle calculated at .25 cents per mile.
•
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MISCELLANEOUS
1 . Billing for the CATV services of both the TJCOG
Special Projects Director and the CATV consultant
will be done by TJCOG as follows :
a. A deposit of $500 upon the execution of the
TJCOG CATV services agreement .
b. 1/2 of the remaining fee amount upon
submission of the written opinion of the CATV
consultant concerning whether the rate
schedules submitted by the cable operator
meet the test of the FCC' s reasonable rate
standards .
c . The remaining fee amount upon submission of
the written report of the compliance findings
by the TJCOG Special Projects Director.
d. Fees for other (hourly) services requested by
the contracting units of government will be
billed monthly.
2 . Requests made by the contracting unit of
government for specialized CATV information
(legal, technical, or engineering) not specified
in this agreement will be referred to a CATV
specialist (legal, technical, or engineering)
mutually agreed upon between the TJCOG Special
Projects Director and the manager (or designee) of
the contracting unit of government . The
consulting fee for the CATV specialist (legal,
technical, or engineering) will be billed directly
to the contracting unit of government . There will
be no additional fee for the services of the TJCOG
Special Projects Director.
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This agreement is executed by the authorities of their
respective governing bodies to be effective on the 19 day
of October , 1993 .
Attest : Town/City/County of. Orange
as. %�. /�'., by /L . rc /Ig
C erk / Mayor/Chairman
Attest : Triangle J Council of Governments
by 0-
Executive Director hairman