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HomeMy WebLinkAbout2/18/1985Monday, February 18, 1985 The Board of County Commissioners of Indian River County, Florida, met in Special Session at the County Commission Chambers, 1840 25th Street, Vero Beach, Florida, on Monday, February 18, 1985, at 7:30 o'clock P.M. Present were Patrick B. Lyons, Chairman; Don C. Scurlock, Jr., Vice Chairman; Richard N. Bird; Margaret C. Bowman; and William C. Wodtke, Jr. Also present were Michael J. Wright, County Administrator; Gary Brandenburg, Attorney to the Board of County Commissioners; L.S. "Tommy Thomas, Intergovernmental Relations Director; and Barbara Bonnah, Deputy Clerk. The Chairman called the meeting to order, and Administrator Wright led the Pledge of Allegiance to the Flag. PUBLIC HEARING - REQUEST FOR RATE INCREASE - FLORIDA CABLEVISION The hour of 7:30 o'clock P.M. having passed, the Deputy Clerk read the following Notice with Proof of Publication attached, to wit: BOOK_: j 890 BOCK 59 Ff{ JE 8.1 _I s " NOTICE OF PUBLIC HEARING;, x, x' The Indian River County Board of,. Cony Commissioner - ;will Mold `o' public hearing on Monday, February' -18,' 1985; at - 7:30 p.m.,�`in: the Commission Chambers located at 1840 25th Street, Vero Beach, Florida, to consider a request from FLORIDA CABLEVISION to increase its rates., as follows:: PRESENT AND PROPOSED RATES The following is a ' summary; of ' Floridd: CablevisforN present and VERO BEACH PRESS -JOURNAL prgposed rates m Indian River County, City of Vero Beach and Indian i{ H -, ) 1.> �-"• � •RIV@r".Shar9S:'x�� x��:�'ya•.`-?.,:-:` ? ..°�a�`'4;�.� :.X^d r•y�;` �•� .i,!I'�'T+- Published Dolly Vero Beach, Indian River county, Florida ,tis Present Rates rll� ` Indian River County and COUNTY OF INDIAN RIVER: STATE OF FLORIDA Monthly Charge Indian River Shores Vero Beach Proposed Rates Before the undersigned authority personally appeared J. J. Schumann, Jr, who on oath ire k Residential serrice `' says that he is Business Manager of a Vero Beach Press•Joumal, a daily ni advertlsemen tlbeing n at Vero Beach in Indian River Count ,Florida: that the attached copy �y, fr w * ¢ $ Primary Outlet r : $7.25 "� `. $6.50 . s. $9.00 Each additional outlet $2 00 "' $1 95 1 w' $2.00 'f a in the matter of Comirigrcc hotel arid; rnatelr aab ,s1 9}.i.Y .`.y� ,-1•qx i.: �, 00. Gp - r_� ce Primary outl'e't '" ` _' $7.25 $6.50. 1 ' $9.00 In the court, was Pub- Each additional outlet 4 $2.00 $1.95 $2.00 F;r4.ib �: ".iy rJL�?Fr •b r t't r ..:. Other Charges. fished In said newspaper in the issues of"'"' t r a Conn�diOd,r, ; s $25 OQ : ; ;': $20.00 $25.00 Ae l 1 g Under round connection ;{`�� ; $35.00= r • .$20:00 $35.00-1. Affiant further says that the said Vero Beach Press -Journal is a newspaper published at VeroBeach, in said Indian River County, Florida, and that the said newspaper has heretofore cutlet COnnet tion'% $15.00 ~ $14.95 $15.00 been continuously published in said Indian River County, Florida, each daily and has been Addition entered as second class mail matter at the post office In Vero Beach, in said Indian River Court • Re -connection' J. $10.00 n t $7.50 $12.00 :. ty, Florida for a period of one year next preceding the first publication of the attached copy of M1(� advertisement: and affiant further says that he has neither paid nor promised any person, firm + i or corporation any discount, rebate• commission or refund for the purpose of securing this advertisement for pubdcation in the said newspaper. Sworn to and subscribed before me this day of , ",A.D. � Effective September .1, 1983, St Lucie County, City of Fort Pierce and St. Lucie' Village subscribers are., paying -the rates listed above under. y (Businea a e Proposed Rates. ``� , (Clerk of the Circuit Court, In Is r All interested 'persons are invited to this meeting. If any person decides to (sEAt� appeal- any decision made by the Board of County Commissioners with respect to any matter considered at this meeting, he/she will. need a record -of the proceedings, and that for such purpose he/she may need to ensure` h6f-"d '06atirn' record' of the proceedings is made, which record includes 6i.;testimony" and evidence upon which the appeal is to be hedrd. Patrick B. Lyons, Chairman Indian River County �', >Y • y ' k `r Board of County Commissioners Chairman Lyons explained that the Public Hearing would be opened after presentations by staff, the rate consultants, and Florida Cablevision, and all those wishing to testify will be sworn in by the County Attorney. Attorney Brandenburg swore in Utility Services Director Terry Pinto who reviewed the following memo dated 2/14/85 and requested that the entire report by Utility Services be made a part of the record: (SAID REPORT IS ON FILE IN ITS ENTIRETY IN THE OFFICE OF THE CLERK) 2 TOTHE HONORABLE MEMBERS OF ONERTE: February 14, 1985 FILE: THE BOARD OF COUNTY COMMISSI THROUGH: Terrance G. Pint FLORIDA CABLEVISION - Utility Services RATE INCREASE REQUEST Director SUBJECT 1) Consultant's Report/Operations_ _ 2 ) Rate Packet Joyce S. Hamilton 13) Consultant's FROM: Franchise Administ for REFERENCES: Report/Rate Utility Services Packet ------ — At the May 2, 1984, Board of County Commissioners' meeting, the Board authorized this department to engage the services of a professional cable television expert (sharing the costs appropriately with the City of Vero Beach) for the purpose of evaluating the rate packet submitted by FLORIDA CABLEVISION. Stratford Smith of Alexander & Associates was selected for this task. ANALYSES: Mr. Smith has submitted his report to this department: A complete copy of the report is on file in the Commission Office. This report is in two parts. Part one covers the evaluation of the cable television operations (EXCERPTS INCLUDED IN EXHIBIT 1). Part two covers the evaluation of the cable television rate increase proposal (EXCERPTS INCLUDED IN EXHIBIT 3). EXHIBIT ONE: EVALUATION OF OPERATIONS -SUMMARY Florida Cablevision had eleven thousand four hundred sixty-five (11,465) subscribers in the unincorporated areas of Indian River County when this report was compiled (page 18, Exhibit 1) . Effective implementation of Florida Cablevision's quality control program should assure a well maintained system providing high quality service to its subscribers. Our consultant commented that the intent and scope of the program are impressive and unique to the industry. He documented this statement by inspection of the quality control files, reports and logs at the company's offices and the complaint logs maintained by this department. This inspection indicated the program is being implemented and a relatively small number of service complaints tend to confirm same (page 45, page 68, pages 71-72, Exhibit 1). In evaluating outages, the consultant agreed with Florida Cablevision staff that outages due to equipment failures not lightning related are relatively few (pages 26-27, Exhibit 1) . Picture quality observed at several locations ranged from acceptable to quite good (page 29, Exhibit 1). 2a FEB18 1985 BOOK 5 9 F",r,E89. , - B00K 59, 893 The twelve -channel capacity limitation does not permit delivery of the choice of services common in the cable communications industry today. Technical limitations imposed by the equipment in place and current amplifier spacing preclude expansion of the channel capacity of the existing system (page 29, Exhibit 1). The decision to rebuild the distribution plant at this time was properly taken according to our consultant. There are areas, particularly along the beach, where supporting strand wire corrosion has reached the point that replacement is mandatory (page 29, bottom of page 58, top of page 59, Exhibit 1) . The consultant states the system as proposed cannot be termed old-fashioned or obsolete but certainly "no frills". In comparison to other systems nationwide and in Florida after the rebuild, the basic system facility will be as technologically advanced as most operations its size. However no local origination, institutional or emergency alert facilities are proposed; nor are any ancillary services beyond the classic entertainment concept of cable television planned. The important question is whether or not the system will meet the specific, well defined needs of Indian River County. What is disturbing to our consultant is that there has been no apparent effort to define those needs (page 67, Exhibit 1). Current subscriber services, as our consultant commented, offer a relatively restricted menu, which of course, will be expanded when the new system is operational. "Must Carry" rules are covered thoroughly by our consultant. These rules account for the duplication of some networks (pages 77-79, Exhibit 1) . Proposed program services (subject to change) are listed in Table 4, page 80 of Exhibit 1. Channels 14/A through 22/I will be viewed on channel 2 of the subscribers' television receiver by means of a set-top converter. So-called cable ready television sets will not require the converter. EXHIBIT 2: RATE PACKET - SUMMARY The rate request packet submitted by Florida Cablevision is attached as Exhibit 2. They are proposing to increase the present rates of $7.25 for 12 channels to $9.00 for 20 channels (page 13, section I, Exhibit 2). In order for the consumer to be able to pick up channels 14/A - 22/I, each television set will require its own separate converter. Subscribers may obtain converters in three basic ways: 1) own a cable ready TV set 2) purchase their own converter 3) rent a converter Florida Cablevision anticipates it will rent converters to a number of subscribers at a cost of approximately $2.00 per month for a basic converter and $4.00 per month for a deluxe remote control converter (page 12, section II, Exhibit 2). The basic converter does not have remote control capacities. The deluxe converter does. 3 EXHIBIT 3: CONSULTANT'S SUMMARY - RATE PACKET Based upon the consultant's evaluation (item #2, pages 69-70 Exhibit 3), indicates that during the fiscal years 1982 and 1983, the present rates charged for service produced a rate of return on rate base, excluding Pay -TV, which was somewhat lower than could be justified. In the fiscal years 1984 and 1985, with the increased rate base in Indian River County resulting from the system rebuild in progress, the indicated rate of return on rate base at present rates is also lower than can be justified. The rates proposed by the Company for service in Indian River County, Florida, will not produce revenues which are sufficient to generate a rate of return which is fully compensatory on the system rate base resulting from the rebuild of the system in the County. The rates proposed of $9.00 per month for primary service and $2.00 per month for each additional outlet will be charged because it is believed that these are the rates that the market place will be willing to accept for service at the present time. The proposed rates for service are believed to be reasonable. They are consistent with rates charged for similar service in surrounding communities. It is believed to be in the public interest that uniform rates be adopted in both the City of Vero Beach and Indian River County. RECOMMENDATION: The consultants and the franchise department staff recommend the Board give all parties involved the opportunity to comment upon the proposal and other relevant matters and take the request under advisement for a final order to be rendered within sixty days. Director Pinto suggested that Mr. Crosby of Florida Cablevision make his presentation first. Attorney Brandenburg swore in Bill Crosby, Manager of Florida Cablevision, who -requested that the CATV System Rate Study and Proposal be made a part of the record. (RATE STUDY AND PROPOSAL ARE ON FILE IN THE OFFICE OF THE CLERK) Air. Crosby felt that the rate increase was certainly justifi- able and fair as confirmed in the report submitted by Alexander & Associates, the cable television consultants hired jointly by the County and the City of Vero Beach. Mr. Crosby urged the Board to approve the rate increase tonight effective as of March 1, 1985. He stressed that the company is not basing this rate increase on 4 FEB 18 1985 BOOK 59 Four. �'�� FEB 18 1985 eoo r,�F 8' additional services; the increase is based on expenditures. He felt the cable system we have today is adequate, but warned there will be more and more problems as time goes by because the cables and electronics are old and it is essential that the system be rebuilt. In regard to additional services, Mr. Crosby explained that the FCC requires certain stations to be carried and these are called "must -carries", which sometimes results in duplications such as with channels 5 and 7 and channels 9 and 12. Mr. Crosby felt sure they will be hit with many more must -carries, and believed that if they do not go with -the 20 channels now, they could lose some of the 12 channels they are presently carrying. Mr. Crosby explained that the company plans to add 8 new stations to its present 12 -channel lineup, four of which will be added by March lst and the other four in June or July. The first four channels are expected to be 29, 42, 44 and ESPN. After the 20 channels are completed, other pay channels are planned, such as Disney, Showtime, Cinemax and the movie channel. Mr. Crosby advised that if a customer wants more than the current basic 12 channels, they either will have to own a cable - ready television set, purchase their own converter, or rent a converter from Florida Cablevision at $2 a month for a basic converter or $4 a month for a deluxe remote control converter. Mr. Crosby announced that they also will be launching additional services which only can be received by a Zenith Z -Tack addressable converter. This totally computer operated descrambler will rent for $0-$6. He recommended that the people in this area who do not have a cable ready set rent a converter until such time as they decide what they want to subscribe to and cautioned that if people run out and buy a converter box or a cable ready set and then decide they want these additional services that are offered, they must rent the Zenith Z -Tack. Commissioner Scurlock understood then that there will be two phases: The first phase will allow a cable -ready set to pick up 5 the 20 channels, and in phase 2 this sophisticated Zenith Z -Tack will be necessary to receive more than the 20 channels. Commissioner Bowman asked how you determine whether you have a cable ready set, and Mr. Crosby explained that most television sets bought during the last year are probably cable ready, but the owner's manual will tell you if they are. Cable -ready sets are capable of receiving approximately 100 channels. Mr. Crosby felt that in the future all TV sets would be cable ready, just as most sets are now color rather than black and white. He stressed that Florida Cablevision will be renting not selling the converters, but they can be purchased at local audio-visual equipment stores. Commissioner Lyons asked if the present 12 channels will remain the same channels, and Mr. Crosby felt they would not and admitted that it is going to be confusing until they find out from the FCC exactly which stations they must carry. Mr. Crosby noted that they hope to have public access programming in the future, but Commissioner Scurlock pointed out that there are nude talk shows in New York which are received through public access programming. Commissioner Wodtke was concerned about people living in areas where service is not available, and Mr. Crosby explained that if an area has 35 residents on a strand mile, they will put them on the system. In counting the cable footage, it may take 5 miles of cable to go one mile because of easements, etc. Commissioner Wodtke asked if they would extend service to only 8 or 9 people on a fraction of a strand mile, and Mr. Crosby explained that the design criteria is such that it is vital that they don't stretch the line extensions too far because it would degrade the picture. If they have to drop back and pick up a trunk line, that would incur another expense. Other than that, they would move on and pick up those customers. Commissioner Bird asked if a developer of an area or the residents outside an area of service would be given consideration and Mr. Crosby stated that they do that everyday. They have to 0 Boa 59 ,,,c 896 r FEB 18 195 BOOK 5 be very careful because they have pole rentals and other expenses and if people are willing to pay their fair share, they will serve them with the understanding that more homes will be built in the area which will help to compensate the cost, i.e., they will work with developers and property owners and as more homes are built within a certain period of time, they will refund money on those homes. Attorney Brandenburg swore in Stratford Smith of Alexander and Associates, who requested that their consulting report be made apart of the record. (SAID REPORT IS ON FILE IN THE OFFICE_OF THE CLERK Mr. Smith introduced Frederick Bolte, a rate consultant called in by Alexander and Associates, and reviewed Mr. Bolte's background and experience in these matters. In reviewing their report, Mr. Smith explained that the first part is a evaluation of the past operations of Florida Cablevision and its proposed rebuild in'light of the proposed rate increase. Part 2 is the financial analysis and justification of the proposed rate increase which was prepared by Mr. Bolte. The report is basically favorable as far as the past operations and proposed rebuild is concerned. Mr. Smith believed it is high time for the plant to be replaced and felt it is remarkable that they have given the quality of service they have with that old system. He felt that the company has a unique quality control program and a dedicated technical staff. He noted that the rebuild proposal is for state of the art equipment, but pointed out that does not necessarily mean that the services will be state of the art compared to cable companies in cities like Chicago or Miami. If a need develops for state of the art service, the system will be able to adapt. In addition, the cable company's response to complaints has been good. In summary, Mr. Smith stated that they found nothing in the operation that would mitigate against the rate proposal. 7 Attorney Brandenburg noted that the County does not have a copy of the current FCC changes and requirements and asked Mr. Bolte if our 3% franchise fee is limited to the base facilities and whether counties can now require 5% to be applied against the gross subscriber revenues if there is a waiver. Mr. Smith felt that since the County has an existing franchise with Florida Cablevision, the franchise has the force and effect of that contract; whether or not the County could require them to increase the franchise fee to 5% rather than trying to negotiate an increase, is another question. He advised that under the new Cable Communications Policy Act, franchising authorities are entitled to go as high as 5% of the annual gross revenues derived from the system. Mr. Smith explained that must -carry stations are stations that are locally originated and must be carried even if they duplicate existing stations. However, that doesn't always mean local stations. If a station thinks it is "significantly viewed" in a given area, they can petition the FCC to require the cable system in that county to carry it. He advised that there is no way that a cable system can get out from under it except by petitioning the FCC that it is a hardship case and he advised that those cases are almost never won. Mr. Crosby announced that they have agreed to pay the City of Vero Beach 3% on both pay and basic cable and wish to continue along those lines with the County. Attorney Brandenburg swore in rate consultant, Frederick Bolte, who advised that they had segregated the City of Vero Beach and Indian River County out of the analysis and approached it on that basis and determined that the rate increase was justified. He stated that he had anticipated that the County might go to a 5% fee and the 1985 figures on Page 37 include a 5% franchise fee on all gross revenues. The bottom line, however, is that the rate increase would still be justified. He noted that they looked at it in terms of rate of return on rate base, 8 FEB1 8 1995 BOOK 5 Fr cG 898 FEB18 1995 BooK 5 0— "- $.99 which is basically the net investment in plant to provide service in that area, and determined that they will not be earning the full return that could be justified at the proposed rates. Commissioner Scurlock was concerned about the consistency of the franchise fees, and asked what other counties were doing. Mr. Bolte stated that in most of the franchise areas in which they have worked, the franchise fee has been in the neighbor- hood of 3%; however, most of them do include the paid services revenues and most of them are going to 5%. As he understood it, the County could go to 5% without a waiver. Mr. Smith stated that whether the County could go to 5% under the new law depends precisely on the language included in the franchise. If it states that the franchise fee is 3% and includes language that it can go to 5% with FCC approval, or if it is legal to do so, it will automatically go to 5%; if it states that it is 3% for the term of the franchise, it stays at 3%. He felt that in construing the new'law, you simply have to look at the franchise itself and analyze its applicability. Attorney Brandenburg advised that Indian River County does not issue cable franchises any longer and that the cable franchises that were issued before the new franchise ordinance were turned into licenses. He asked, in that case, if the County could raise the fee to 5%. Mr. Smith felt the County might have difficulty if the language in the agreement is for 3%, regardless of whether it is called a license or a franchise. Mr. Crosby noted that any additional franchise fee other than what is called for in the franchise is also in a proposed pass through. Commissioner Wodtke asked if it would be cost effective for the company to provide 25, 35, or 45 channels instead of 20. Mr. Crosby stated that they are proposing to activate 20 channels at the present time, but the equipment, as designed, is capable of going to 54 channels by installing additional equipment. 9 It is built so that if a need develops, it can be filled. However, they need a basic cable schedule for people on fixed incomes who don't want or cannot afford more than 20 channels. He felt that if the rest of the people want and can pay for it, extra services will be available. Chairman Lyons opened the Public Hearing and asked if anyone wished to be heard in this matter. Attorney Brandenburg swore in Ray Zitzner, 4346 21st Place, who understood there is a possibility that channels 5 and 7 would be changed to 15 and 17, which would require most of the owners of TV sets in the county to install a converter box. Although he owned a cable ready set, he expressed concern about other people who cannot afford to go out and buy a new set. Mr. Crosby assured Mr. Zitzner that they must carry ABC, NBC and CBS on the 12 -channel schedule. Mr. Zitzner objected to the rate increases being effective March 1st when all the additional channels will not be received until June or July. Mr. Crosby emphasized that the rate increase was not based on making additional channels available -- it is based on the company's expenditures. Attorney Brandenburg swore in Norman Houle, 2465 44th Avenue, who understood that a converter box would be needed to get the additional channels and could be rented for $2 a month, and ordinary TVs still would be able to receive the current basic 12- channel schedule. Mr. Crosby explained that a converter can be moved from one TV set in the house to another, but must stay in the residence. He explained that there would be no installation charge if people wish to come into the office and pick up their converters; however, there would be a charge if they had to go out to the house to install one. He did not anticipate a deposit charge on the converters. 10 FED 18 1985 BOOK 59 F" - FEB 18 1995 - BOOK ON MOTION by Commissioner Wodtke, SECONDED by Commissioner Scurlock, the Board unanimously closed the Public Hearing. 59 Fact Wl Chairman Lyons felt that the Utility Services Department had provided the Commission with a very concise view of the facts in this case by extracting considerable material from the consultant's report. Commissioner Scurlock stated that if Mr. Crosby would be willing to stipulate that he has no objections to expanding the 3% franchise fee to the paid stations -as well, he felt that he could make a Motion to go ahead and approve the rate increase as proposed. Mr. Crosby believed that they would agree to that, but he felt that we should sit down and discuss it because it is difficult to decide here tonight as he did not expect this to come up. Commissioner Scurlock advised Mr. Crosby that if he wanted a final order issued tonight, we better discuss this tonight. Administrator Wright suggested that we issue the final order on February 28th, but Mr. Crosby advised that they needed to know by February 20th in order to notify their computer service. Commissioner Scurlock stated that he is not talking about 3% of gross revenues including advertising and all the other things as broad based as the consultant suggested that we could go, he was talking about 3% to be expanded beyond the basic service to include the paid service as well. Mr. Crosby asked if he was talking about Florida Cablevision absorbing it, and Commissioner Scurlock said no. Attorney Brandenburg felt the consultants have said that this proposed rate includes a franchise fee that would be as much as 5%, and if the County were to impose a franchise fee less than 5%, then it might be possible that the rate would be adjusted downward. I Mr. Bolte advised that he would not recommend any reduction in the rates because the company would not be earning anywhere near its full return even at the proposed rates. He felt that whatever the County does with the franchise or whatever expense is backed out would have no significant effect on the rate of return. Commissioner Scurlock explained that his Motion is for the 3% franchise fee to include the preliminary outlet, the additional outlets, and all those items listed in Table 1 on Page 37 of the consultant's report. FLORIDA CP,B=SION Table 1 Present & Proposed Rates for CATV Service City of Vero Beach & Indian River County Present Rates Proposed Description - 'Monthly Charge Vero Beach Ind. River Co. Rates Residential Service Primary Outlet $6.50 $7.25 $9.00 Additional Outlet $1.95 $$2.00 $2.00 Commercial, Hotel, 'Motel Primary Outlet $6.50 $7.25 $9.00 Additional Outlet $1.95 $2.00 $2.00 Converter Rental Basic Converter $2.00 Deluxe Remote Control $4.00 Other 0ne Time Charges (not monthly): Aerial Connection $20.00 $25.00 $25.00 Underground Connection $20.00 $35.00 $35.00 Additional Outlet Connection $14.95 $15.00 $15.00 Re -connection $ 7.50 $10.00 $12.50 Install Basic Converter * $ 5.00 Install Deluxe Converter * $10.00 * If subscriber picks up the converter at the Florida Cablevison office, or installs his awn converter, there is no converter installation charge. 12 FEB18 1985 Boos 59 FAcF.909 I FEB 18 1935BooK FouE 993 Mr. Crosby advised that they had reached agreement with the City of Vero Beach on 3% of the basic cable and 3% of the paid services and installations. He stated he would agree with those terms if the County did not want to renegotiate a new franchise. MOTION WAS MADE BY Commissioner Scurlock, SECONDED by Commissioner Wodtke, that the Board adopt the proposed rate structure as outlined by the consultants Alexander & Associates, and that we expand the franchise fee of 3% to cover the services outlined on Page 37 of the consultant's report. - Attorney Brandenburg believed that Mr. Crosby has agreed to this because he understands that there will be no renegotiations of any of the aspects of the current franchise at this time. Mr. Crosby confirmed this. Attorney Brandenburg wanted Mr. Crosby to be aware that the consultants have proposed a new County -wide franchise ordinance which has not come before the Board as yet. Commissioner Lyons asked if there was some reason we should talk about it now. Director Pinto explained that if the Motion is suggesting that we are not going to make any amendments to their franchise, then he would suggest that we not do that because he felt the ordinance does need some work. If the Motion is saying that right now the only amendment would be the definition of paid services on which the 3% would be applied, he would agree. Commissioner Scurlock felt that Mr. Crosby is concerned about having to amend the franchise which is some 80 -pages long. Mr. Crosby felt that he has honored the franchise 100% as best he could and is just saying that if the County does want to renegotiate, then we should identify now those areas of the franchise and come to a reasonable solution. If Florida Cablevision is doing something wrong, they want that pointed out 13 to them. Mr. Crosby did not want to get involved in paying fines or that type of thing or having them hanging over his head. Commissioner Scurlock understood that Florida Cablevision has a 20 -year franchise now and stated that the intent of his Motion with respect to the franchise agreement is that at this point in time we don't have any desire to renegotiate the whole thing. If at some point in time, however, there are improvements that could be pointed out, we would contact Mr. Crosby and negotiate those items with him. Director Pinto advised that we are having significant problems with another licensed cable company in this County, and staff is recommending that the County's franchise ordinance be changed in some manner. He believed Florida Cablevision has done a fine job and felt that the license issued to them probably would be consistent with their present licence, but changing our ordinance would give the County the ability to regulate other franchises. Commissioner Scurlock felt that Mr. Crosby just doesn't want to be put in a position of having to renegotiate in depth. Director Pinto believed that you could include anything you wanted to when issuing a license. Commissioner Scurlock felt that when we issue the license, we are making a commitment to Florida Cablevision that we are not requesting a major revamp or the installation of all sorts of new equipment. Attorney Brandenburg advised that if you have an ordinance that requires certain things, he did not feel that you could give a cable company a license that says they don't have to live by those requirements. However, it is possible because of service inadequacies and other problems, to issue a license requiring certain special conditions that you might not require of someone else. He felt that if we are going to change the ordinance, it is going to have to be changed so that every cable operator in the County has to comply with all the changes. 14 i L- FEB 18 1985 BOOK 59 fAEE .994 FEB 18 195 BOOK 59 F"Gc0 Commissioner Bird felt that before we adopt a new franchise ordinance, we should hire consultants to advise us on what part of the ordinance are unreasonable and what parts are acceptable. Director Pinto repeated that he would hate to see the Board pass this Motion if it means that Florida Cablevision's franchise is going to stay exactly the way it is and that the County's present franchise ordinance is going to stay exactly the way it is. Commissioner Scurlock stated that is not the intent of his Motion. COMMISSIONERS SCURLOCK AND WODTKE AGREED TO RESTATE THEIR MOTION TO READ: that the Board approve the rate structure as proposed by Alexander & Associates as found on Page 37 of the consultant's report effective March 1, 1985; that the franchise fee of 3% be expanded to the other services that are paid, which Mr. Crosby has agreed to; and that we make a commitment to Mr. Crosby that while we are not going to totally renegotiate the Florida Cablevision franchise agreement at this point in time, it is understood that if we identify inadequacies in the future, we will meet with Florida Cablevision and make a good faith effort to negotiate those items. Under discussion, Attorney Brandenburg stated that his position with respect to license agreements is that the County Commission has the ability to respond to the public's needs by changing the requirements for licensees from time to time. The license issued to Florida Cablevision is for 20 years subject to the language in the ordinance and any changes that are made must not harm the economical vitality of the company. Mr. Smith explained that under the new Cable Communications Policy Act, cable rate regulation is to be deregulated at the end 15 of 2 years from the effective date of the act unless the cable system is not subject to a yet to be defined standard of effective competition. If the cable system does not have effective competition as defined by the FCC, the cable system's rates will still be subject to regulation by the local authority. He advised that the definition of "standard of effective competition" will be made by the FCC sometime in the next two weeks. THE CHAIRMAN CALLED FOR THE QUESTION. The Motion was voted on and carried unanimously. There being no further business, on Motion duly made, seconded and carried, the Board adjourned at 9:00 o'clock P.M. ATTEST: r Clerk 16 FEB 18 1985 aooK 59F,.,.c Jri