memorandum

TO:	Roger L. Stancil, Town Manager
FROM:	Sabrina Oliver, Communications and Public Affairs Director Catherine Lazorko, Public Information Officer
SUBJECT:	Public Forum on Time Warner Cable Service Issues
DATE:	March 16, 2009

PURPOSE

On January 12, 2009, the Council called a public forum to receive public comment on Time Warner Cable service issues.

The cable television franchise approved by the Council and accepted by Time Warner Cable in July 1996 currently gives the Town authority over some matters related to cable service. This authority covers the regulation of cable rates, oversight of public rights of, the establishment and operation of PEG channels and fees, consumer protection, the collection of remnant franchise fees, and the authority to deny the sale of the cable system.  

An advertised notice (Attachment 1) to announce this public forum was published in the local newspaper, The Chapel Hill News, and a news release was issued by the Communications and Public Affairs Department.

BACKGROUND

Time Warner Cable is scheduled to provide an annual report to the Town in April 2009. The areas of review required in the cable company’s annual report to the Town are as follows: Rates and Charges (basic cable service only); Public, Education and Government Access Channels; Customer Service; Filings with the FCC; Performance Tests; Franchise Fee Payments; and Completion of Construction.

It should be noted that AT&T filed a Notice of Franchise with the NC Secretary of State on November 13, 2008. The company has 130 days in which to file a Notice of Service establishing the initiation of video service in Chapel Hill. When AT&T files its Notice of Service with the Secretary of State’s office, Time Warner Cable is permitted to terminate its Chapel Hill franchise and secure a State video service franchise from the Secretary of State’s office. If this occurs, the franchise and governing authority by the Town over all cable services will cease. All complaints and inquiries about cable television would then be directed to the N.C. Attorney General’s Office, Consumer Protection Division.

Some of the recent interactions between the Town of Chapel Hill and Time Warner as they relate to cable service issues are as follows:

• During the course of its review of the Time Warner Cable Annual Report on June 9, 2008 (Attachment 2), the Council requested additional information about customer complaints and related cable service.
• On October 15, 2008, the Council received an information report about Time Warner Cable Customer Service (Attachment 3). The Council requested additional monitoring of customer complaints to Time Warner Cable.
• On December 11, 2008, Town staff received correspondence from Time Warner Cable that discussed service calls received in the Chapel Hill area (Attachment 4).
• On January 12, 2009, the Council received a report on Time Warner Cable Basic Service Tier Rates for 2009 (Attachment 5). Time Warner furnishes the Town with information about rate changes, which are reviewed on an annual basis to determine whether the rates are calculated in a manner consistent with Federal Communications Commission (FCC) guidelines, the Time Warner Social Contract, and the Telecommunications Act of 1996. 

NEXT STEPS

We recommend that the Council receive public comment on Time Warner Cable service issues and refer all comments from the public forum to Town staff, Time Warner Cable and the N.C. Attorney General’s Office, Consumer Protection Division for review and response.  We will present a response accompanied with the Time Warner Cable Annual Report, which is forthcoming.

ATTACHMENTS

1. Public Forum Notices of March 1, 2009, and March 8, 2009 (p. 3).

2. June 9, 2008, Time Warner Cable Annual Report (p. 5).

3. October 15, 2008, Response to Questions about Time Warner Cable Customer Service (p. 12).

4. December 11, 2008, Letter from Time Warner Cable Representative Cindy Ray Keene (p. 15).

5. January 12, 2009, Consideration of Resolution Finding Time Warner Cable Basic Service Tier Rates Consistent with Federal Regulations (p. 21).