2004-06-14 Special Meeting
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 30
SPECIAL MEETINGJUNE 14, 2004PAGE 61
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ASSEMBLY
The New Hanover County Board of Commissioners met for a Special Meeting on Monday, June 14, 2004, at
9:00 a.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North
Carolina.
Members present were: Chairman Robert G. Greer; Vice-Chairman Julia Boseman; Commissioner William A.
Caster; Commissioner Ted Davis, Jr.; Commissioner Nancy H. Pritchett; County Manager, Allen O’Neal; County
Attorney, Wanda M. Copley; and Clerk to the Board, Sheila L. Schult.
County Manager Allen O’Neal gave the invocation.
Commissioner Caster led the audience in the Pledge of Allegiance to the Flag.
Chairman Greer called the meeting to order and announced that the purpose of the Special Meeting was to
discuss the cable TV franchise system and to consider filing a Petition for Re-Certification to Regain Local Cable Rate
Regulatory Authority.
Chairman Greer called on County Attorney Copley to make the Staff presentation.
County Attorney Copley referred to a memo sent by cable advisor Robert Sepe of Action Audits, LLC, stating
that he feels the County has the necessary evidence to argue that its rate regulatory authority should be re-instated by the
FCC, and he outlined the benefits to the County if it would prevail on the Petition for Re-Certification.
In a regulated market cable companies could not require residents to buy anything more than the basic tier when
they wanted to watch a premium channel or pay-per-view service. Now, in a deregulated market, cable companies can
require a subscriber to buy the basic, enhanced basic, gateway, digital tiers, even HDTV, if that subscriber simply wants
to watch pay-per-view or subscribe to HBO. Cable companies can charge anyone, any rate, for any service including
charging senior citizens and lower economic cable subscribers twice as much as wealthier residents for the same service,
in an attempt to get those who have more disposable income to buy even more services.
Commissioner Caster asked for clarification from County Attorney Copley concerning what Re-Certification
to Regain Local Cable Rate Regulatory Authority would cover.
County Attorney Copley clarified that re-certification would only allow rate regulatory authority over the basic
tier of service and would not have an effect on any of the premium services.
Commissioner Davis commented that if the Re-Certification to Regain Local Cable Rate Regulatory Authority
was approved it would allow the basic tier rates to be regulated and would have some impact on the premium tiers
allowing some level of protection to senior citizens and those on fixed incomes. This would send a message to cable
providers that the County is trying to protect its citizens.
Chairman Greer commented that the memo from Mr. Sepe did not state that the cable companies are not being
regulated but that the FCC is the regulating authority.
Commissioner Davis commented that if the FCC is allowed to have the regulatory authority then it is possible
that it will get lost in the huge bureaucracy. At least with local control, the County can try to do more.
County Attorney Copley stated that the FCC’s decision to deregulate in New Hanover County was based on
findings that the County had effective competition because there are two cable providers. Mr. Sepe’s opinion is that
although there are two cable providers in the County, they do not offer services in the same areas; therefore, there is not
effective competition. Due to the expense, it is the choice of the cable companies not to offer services in the same area.
County Attorney Copley stated that we do not know the impact the deregulation will have and there is no
guarantee that this will help protect our citizens.
Commissioner Pritchett commented that since there is no penalty for filing the petition, even if it is denied, at
least the Board has tried.
Chairman Greer stated that the cost for filing the petition is approximately $5,500.
Vice-Chairman Boseman stated that it was a minimal amount of money and she would rather err on the side
of caution.
Motion:
Vice-Chairman Boseman MOVED, SECONDED by Commissioner Pritchett to file the petition for Re-
Certification to Regain Local Cable Rate Regulatory Authority and approve the associated funds. Upon vote, the
MOTION PASSED 3 to 2. Vice-Chairman Boseman, Commissioner Davis, and Commissioner Pritchett voted in favor.
ADJOURNMENT
There being no other business, Chairman Greer called for a motion to adjourn.
Motion:
Commissioner Caster MOVED, SECONDED by Vice-Chairman Boseman, to adjourn. Upon vote, the
MOTION CARRIED UNANIMOUSLY.
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 30
SPECIAL MEETINGJUNE 14, 2004PAGE 62
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Chairman Greer adjourned the meeting at 9:20 a.m.
Respectfully submitted,
Sheila L. Schult
Clerk to the Board