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Fr MqY 11890 BOOK A PAGE Cablevision. At the County Commission meeting on January 12, 1988, Resolution No. 88-4 was adopted, providing for the transfer of the cable television license held by Jones Intercable, Inc., to Falcon Cable Media, L.P. At both of these meetings, a gradual increase in franchise fees to 5% was also discussed and, over the past few weeks, meetings have been held with Ken Vickers of Falcon Cable and Billy Crosby of Florida Cablevision regarding the implementation of this rate. Both representatives verbally agreed to this increase, based upon the Cable Communications Policy Act of 1984, Part III, Section 622(b), which states: "For any twelve-month period, the franchise fees paid by a cable operator with respect to any cable system shall not exceed 5 percent of such cable operator's gross revenues derived in such period from the operation of the cable system."_ (Excerpt attached.) ANALYSIS: The attached calculations reflect an increase in franchise fees from the current rate of 3% to the proposed rate of 5%, based upon the fiscal year 1989 income for both companies. In addition to revising the cable company Ordinance No. 82-7 to reflect this increase in franchise fees (or the maximum allowable by law), franchise fees should be submitted on a quarterly (rather than annual) basis. Article III, Section 3, of the ordinance should also be revised, extending the current licenses held by both companies by eight years. RECOMMENDATION: It is requested that the Board of County Commissioners approve the attached cable ordinance, which would revise Ordinance No. 82-7 to reflect an increase in franchise fees to 5%, require that payments be made on a quarterly basis, and extend the current licenses held by Florida Cablevision and Falcon Cable by eight years. Utilities Director Terry Pinto explained that the main justification for the increase in franchise fees from 3% to 5% is because cable companies use the County's rights of way for their cable lines. Commissioner Wheeler asked the amount of the typical monthly bill, and Billy Crosby of Florida Cablevision advised that their present basic service rates are $15.95 a month. Commissioner Wheeler felt there has been a misunderstanding by some people about this 20 increase, and wished to clarify that it will amount to about thirty or forty cents a month on the typical monthly bill. In addition, we are going to be getting the money quarterly instead of annually, which will benefit the County. 38