HomeMy WebLinkAboutAgenda - 03-16-2004-5eORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 16, 2004
Action Agenda
Item No. 5-e_
SUBJECT: Resolution on Re-entering Informal Franchise Renewal Negotiations with Time
Warner Cable
DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Proposed Resolution
Cable Ordinance Comparison
INFORMATION CONTACT:
Michael Patrick, Chair, Cable Advisory
Committee
Gwen Harvey, Assistant County
Manager, ext 2300
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider a resolution setting forth a strategy for the Cable Advisory Committee
of Orange County and the County staff re-entering into informal franchise renewal negotiations
with Time Warner Cable (TWC).
BACKGROUND: On October 1, 2003, the BOCC adopted on second reading an ordinance
outlining the County's "best offer" in a renewal agreement with TWC for cable services in the
unincorporated county. TWC has refused to sign the agreement and has called instead for re-
opening informal negotiations on what it sees as the 1 or 2 small issues" that remain. On
February 17, at the request of County staff, TWC provided a revised version of the ordinance
that would be acceptable to them. The Cable Advisory Committee has met and considered the
TWC request and expressed its concern to the Board Chair and Board Liaison, Commissioners
Jacobs and Carey, about simply continuing informal negotiations, and has encouraged the
County to consider initiating the formal negotiation process. The formal negotiation process
would take up to 3 years and would require an investment estimated at up to $300,000.
An alternative to embarking upon the more expensive and adversarial formal negotiation
process has recently been suggested. That is to engage the services of a neutral, third party
facilitator-mediator to bring the County and TWC together to attempt resolution. Andy Sachs,
who heads the Public Disputes Program at Dispute Settlement Center of Orange County, has
been contacted and agreed to serve in this capacity. Mr. Sachs would meet and confer with
both the County and TWC independently and develop a framework for "good faith" negotiations
that would be agreeable to both parties. TWC has been contacted about this alternative and
has agreed to this third party facilitator process A report would be brought back to the BOCC
in May so that any budgetary needs, should negotiations not appear successful, could be
factored into the budget projection for 2004-05.
A copy of the proposed resolution and an outline, prepared by the Cable Advisory
Committee, of the areas of difference among the BOCC approved franchise, the Triangle J
Council of Governments model franchise, and the franchise agreement as submitted by Time
Warner Cable in February 2004 is attached.
FINANCIAL IMPACT: The full cost of facilitated, negotiated sessions (estimated at $90 per
hour) will be shared by the County and Time Warner Cable, with Time Warner Cable agreeing
to cover one-half of the actual expense.
RECOMMENDATION(S): The Manager recommends that the Board adopt the proposed
resolution.
Orange County Board of Commissioners
RESOLUTION
Authorizing Re-entry into Informal Franchise Renewal
Negotiations with Time Warner Cable Facilitated by
Dispute Settlement Center
of Orange County
WHEREAS, the Board of County Commissioners on October 1, 2003 adopted at second
reading a franchise renewal ordinance with Time Warner Cable that represented the "best
offer" from the Orange County Cable Advisory Committee as agreed to by the Board;
and
WHEREAS, the Time Warner Cable representative attending the meeting spoke against
approval of the franchise renewal ordinance and stated that only "1 or 2 small issues"
separated the County and the cable operator; and
WHEREAS, Time Warner Cable officially responded to the County on October 31, 2003 in
a letter indicating that the adopted ordinance was not acceptable, and that they wished to
discuss with the County whether the parties could continue informal negotiations or resort to
the formal negotiation process; and
WHEREAS, County staff responded by requesting a written statement on the "1 or 2 small
issues" that could be addressed jointly over a reasonable period of time, given a history of
prolonged and often unproductive informal negotiations; and
WHEREAS, Time Warner Cable responded on February 17, 2004 by submitting a
revised franchise ordinance, which while it reflects concessions on density requirements
for cable service extension and discounted costs to the County for cable modem, still
presents areas of challenge and concern for the County on enforcement provisions and
PEG (Public Education and Government) issues; and
WHEREAS, the Cable Advisory Committee appointed by the BOCC to serve as the
citizen arm on franchise renewal and customer complaints has reviewed the current
situation and revised ordinance, and called upon the BOCC to consider moving forward
with a community needs assessment - the prerequisite to undertaking the more expensive
and adversarial, yet more decisive formal franchise renewal process; and
WHEREAS, the BOCC has an interest in initiating another round of "good faith"
negotiations with Time Warner Cable, but utilizing the services of a neutral, third party
facilitator, so as to thoroughly exhaust the informal negotiation process before moving
forward with the formal negotiation process;
NOW, THEREFORE, BE IT RESOLVED that the Orange County Board of
Commissioners authorizes the Cable Advisory Committee in conjunction with the County
Manager's Office to re-enter informal negotiations on the cable franchise renewal
ordinance with Time Warner Cable, utilizing the services of a neutral, third party
facilitator, and that a report be made to the BOCC on results by the beginning of May
2004 so that, if necessary, any funding implications for formal negotiations could be
evaluated as part of the annual budget process for Fiscal Year 2004-05,
Adopted this the 16°i day of March, 2004,
Barry Jacobs, Chair
Orange County Board of Commissioners
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