FROM: W. Calvin Horton, Town Manager
SUBJECT: Consideration of Resolution Finding Time Warner Cable Basic Service Tier Rates Consistent with Federal Regulations
DATE: January 10, 2005
Federal regulations allow the Council to review Time Warner Cable Basic Service Tier rates to determine whether such rates are accurately calculated and consistent with applicable rules. The purpose of this memorandum is to provide information about the increase for 2005.
A resolution is attached, which accepts the cable consultant’s report and finds Time Warner’s proposed rates to be accurately calculated according to Federal Communications Commission (FCC) rules and regulations.
On October 19, 2004, Time Warner Cable notified us (Attachment 1) that it intended to set the Basic Service Tier rate at $10.60 a month for Chapel Hill customers and $14.50 a month for Durham customers for the upcoming year. This reflects a decrease from the 2004 monthly rate of $11.25 for Chapel Hill and an increase from $14.30 for Durham customers.
Each year, Time Warner furnishes the Town with information about rate changes, which we provide to Mr. Adrian Herbst, the Town’s cablevision consultant, for review. Mr. Herbst has reviewed the data to determine whether Time Warner calculated the updated Basic Service Tier rates in a manner consistent with FCC guidelines, the Time Warner Social Contract, and the Telecommunications Act of 1996. It is the consultant’s conclusion that the Basic rates are accurately calculated according to the rules of the FCC (Attachment 2).
RECOMMENDATION
That the Council adopt the attached resolution, which accepts the consultant’s report and finds Time Warner’s proposed rates to be accurately calculated according to FCC rules and regulations. We also recommend that any comments received tonight be referred to the Manager.
ATTACHMENTS
1. October 19, 2004, Letter from Mr. Brad Phillips of Time Warner Cable (p. 3).
2. November 9, 2004, Letter and Report from Mr. Adrian Herbst (Re: 2004 Rate Review – Time Warner) (p. 7).
A RESOLUTION ACCEPTING THE CABLE CONSULTANT’S REPORT AND FINDING TIME WARNER CABLE’S PROPOSED 2005 BASIC SERVICE TIER RATES TO BE ACCURATELY CALCULATED ACCORDING TO FCC RULES AND REGULATIONS (2005-01-10/R-7)
WHEREAS, Time Warner Cable submitted Federal Communications Commission (FCC) Form 1240 Updating Maximum Permitted Rates for Regulated Cable Services; and
WHEREAS, Time Warner submitted FCC Form 1205, Determining Regulated Equipment and Installation Costs; and
WHEREAS, the Town of Chapel Hill is certified with the FCC to regulate Basic Service Tier rates provided by Time Warner Cable in franchise NC-0234; and
WHEREAS, the Town’s cablevision consultants have reviewed the rates and have determined that they are accurately calculated according to the rules of the FCC;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council accepts the cable consultant’s report and finds Time Warner Cable’s proposed 2005 Basic Service Tier rates to be accurately calculated according to FCC rules and regulations.
This the 10th day of January, 2005.