Mr. Curry stated that this item will be continued to next month’s meeting.
The next item on the agenda was the status report of review of operator rate filings. Ms. Piety stated Mr. Karrison has received documentation from Comcast and Time Warner in response to the City’s information requests and is in the process of preparing second supplemental data requests to both operators.
The next item on the agenda was the 1998 PEG Grant Report. Ms. Piety asked for consent from the Board to send the report to both cable operators for comment. The report shows PEG capital expenditures for Channel 16 and ETC during 1998.
The Board, by consent, voted to send the PEG Grant report to both cable operators for comment.
The next item on the agenda was the Cable Agency Report. Mr. Maultra presented the Cable Agency report which highlighted the events that have taken place at the Cable Agency in the last month. Mr. Maultra stated that the Agency continues to perform its review of the franchise agreements for possible non-compliance issues. The Agency has been working with Peggy Piety and has a couple of areas that it expects to receive feedback from other departments before the Agency proceeds in talks with the cable operators.
The Agency reviewed and prepared questions for the upcoming Harvard Cable Customer Survey that will attempt to measure customer satisfaction for upgraded cable services. The Agency sent copies of the survey drafts for input from the Cable Franchise Board and most of the Board responded and that feedback was turned over to Harvard for incorporation into the final survey. The cable operators have been kind enough to provide customer data bases to Harvard for purposes of conducting this survey.
The Cable Agency received further requested information from the cable operators and forwarded that on to Lou Karrison of Crowe/Chizek so that he might perform the rate review on the original submissions of the FCC 1240 forms which pertain to rates, and the Form 1205, which generally pertains to rate adjustments to associated equipment. The Agency has been involved in a number of internal matters that include conducting employee review, interviewing and hiring a new Senior Secretary, and reconciling a number of purchases before the 1998 deadline.
The Cable Agency has worked with both cable operators in mediating a number of customer cable problems with a summary and breakdown of problems attached the Agency report. Time Warner had a total of 59 complaints for the month, and Comcast had a total of 37 complaints. Time Warner had increasing complaint calls on cable guides that subscribers did not order and were being billed for, and Comcast had increasing complaints on PPV movies that subscribers did not order and were being billed for.
The next item on the Agenda was the Channel 16 Programming Report presented by Mr. Montgomery. Mr. Montgomery highlighted some of the activities of Channel 16 for the month of November. In November there were 29 hours and 27 minutes of live meeting coverage. Tape Delay meetings totaled 8 hours and 24 minutes. Special Events Production totaled 19 hours and 42 minutes.
In the area of In-Kind Production, Channel 16 had 8 hours and 29 minutes. Series Programs totaled 3 hours. Mr. Montgomery stated due to a computer glitch, tallies for the November Interactive Information Service Usage are not available. Total new production for the month of November was 69 hours and 2 minutes.
Mr. Montgomery stated in reference to additional notes that parking for the new Channel 16 van has been secured through the cooperation of the Mayor's Office. The new DVC-Pro decks have arrived. Five playback/record decks are being added in the first phase of the tape format change. 3 DVC-Pro camcorders are expected to arrive before the end of the year. Mr. Montgomery stated A Small Town In A City, the documentary for the Indianapolis City Market has been completed. Staff producer Angela Gilmer earned kudos from the staff of Keep Indianapolis Beautiful for producing two promotional videos. Staff producer Alan Dhayer performed at a high level to produce an awareness video for the Survive Alive program, shown at the City's booth at the National League of Cities convention in early December.
The next agenda item was the Cable Operator's Report. Mr. Aldridge presented the Time Warner Report. Mr. Aldridge stated that Time Warner had a loss in the number of full cable service subscribers in the month of November. Time Warner completed 3,589 installs for the month of November with 4,245 scheduled. Incoming calls for the month were 47,398 with 91.9% answered within 30 seconds or less. Busy rate was 1.7%. Service calls for the month were 1,993 scheduled and 1,924 completed. Time Warner planned 18 outages for the month and had 57 outages. Mr. Aldridge stated the upgrade is completed.
The Community Involvement report supports alot of different community events and programming, including coordinated Holiday greeting spots in conjunction with Comcast for several elected officials, including Mayor Stephen Goldsmith, Congressional Representatives Dan Burton and Julia Carson, Senator Richard Lugar and Senator-elect Evan Bayh.
Mr. Mark Apple presented the Cable Operator's November Management Report for Comcast. Mr. Apple stated that Comcast billing system conversion has been completed. However there are some minor problems that Comcast is working through.
Mr. Apple stated Comcast’s ending total subscribers are 110,147 customers. For incoming calls, Comast had 103,461 calls; 88.55% of those calls were answered in 30 seconds or less. Comcast had 105 outages for the month, , 3 of them were planned. Comcast received and scheduled 2,770 calls and completed 2,750; 59.1% were completed within 24 hours; 99.2% were completed in 36 hours or by customer request. Comcast scheduled 3,546 installations and 3,278 of those scheduled were completed.
Mr. Apple also stated that during the month of November, Comcast had 38 hours of community interest programming aired on Channel 50. WAV 53 had 163.5 hours of locally produced programming. Comcast aired and produced 11 public service announcements and 22 Newsmakers segments. For Comcast events and sponsorships see report.
The next item on the agenda was the ETC Report. Mr. Donaldson presented the ETC report. Mr. Donaldson stated that ETC aired "AFRICA THROUGH THE LENS" produced by Public Access of Indianapolis in December. ETC also submitted an expenditure report to Peggy Piety indicating cash balances in all three accounts. The first two grants have reached the contracted expiration date. Funds from these accounts should be returned to the City of Indianapolis from Indiana University. The 1998 Grant for $65K is active until June 30, 1999. Expenditures will begin in the 1st Quarter of 1999. Mr. Donaldson also stated that ETC Program Review Committee has approved the use of the recovery network as "educational" content programming that will benefit the community. The recovery network feed is free of commercial spots. Time Warner Cable has agreed to provide signal reception and network switching for this programming, which thereby eliminates any costs associated with the program.
Mr. Donaldson stated due to an inadvertent switching error at Time Warner Cable over the Thanksgiving Holiday Weekend, the EPS Channel in the Time Warner Franchise aired Uni Vision. Normal EPS programming was correctly aired in the Comcast Franchise.
Mr. Donaldson stated Comcast has added ETC to Danville, Brownsburg, and most of Plainfield on Channel 20. The remainder of Planfield and Mooresville will receive the channel within the next two weeks. The only customers who will not receive ETC are those fed off the Monrovia head end. ETC may be removed from Hendricks/Morgan Counties in the future, but for now about 10,000 more residences will receive it.
The January ETC Schedule remains under development due to new Spring Semester Programming. Once the logistics of the new program order are resolved, copies will be mailed to the board and posted to the ETC Website.
The Board asked Mr. Donaldson to split the SCOLA/Deutsche Welle hours into two numbers.
Mr. Jody Valerio commented on Andrea Price’s questions from the last Board meeting. Mr. Curry asked Mr. Valerio to confirm on The Recovery Network’s cost and the commercial content.
Mr. Valerio stated that until two weeks ago the Recovery Network had two different feeds, commercial and non commercial. Now the Recovery Network has only a non-commercial feed with public service announcements. Mr. Valerio stated that Recovery Network has only a non-commercial feed.
Mr. Curry asked if the Recovery Network feed to Indianapolis would remain non- commercial.
Mr. Valerio stated that the channel will always be commercial free. Mr. Valerio also stated regarding merchandise that Recovery Network has approximately 3.4 million viewers. Since September 1, when Recovery Network launched, they sold only 39 items in the last 3 months through their website.
Mr. Valerio stated in reference to cable agreements, Recovery Network has a cable agreement with TCI and just reached an agreement with Time Warner. Mr. Valerio stated the reason why Recovery Network uses agreements is it makes communication with local cable management officials easier.
Mr. Curry asked if the agreements with those entities are primarily necessary for the carriage of the signal.
Mr. Valerio stated that the agreements aren’t necessary for carriage; they are an entree to the PEG access channels, many of whom are operated by the cable systems.
Ms. Andrea Price stated she feels that Recovery Network is a commercial venture and launching the network is how Recovery Network makes money. Whether there is a separate feed that is non-commercial, the point of this is to make money. Ms. Price stated she does not think it is an appropriate use of access channels, which are supposed to be for noncommercial programming even though the subject matter of the Recovery Network may have some educational components. Ms. Price stated she is concerned that it opens the City up to possible litigation from one of Recovery Network’s competitors. This programming is more appropriate on leased access.
Mr. Valerio stated that the Recovery Network makes money through sponsorships from Drug Free America and other commercial sponsors. Mr. Valerio stated that over 50 different organizations sponsor its network. Mr. Valerio stated the network is free to the City and will remain free.
Mr. Curry asked Ms. Piety if the City would be opening the City to a liability and if she could comment on this in reference to the City Code.
Ms. Piety stated the City Code requires that non- commercial programming be offered on the access channels.
Mr. Hiltunen asked if the Recovery Network is set up as a not for profit organization or as a for profit organization.
Mr. Valerio stated the Recovery Channel is a for profit organization, but has other ways of making money.
Mr. Leonard asked, in reference to the section of the City Code whether it is aimed at on air commercial or intended to cover network or broadcasters for profit.
Ms. Piety stated the Code states the operator shall be responsible for preventing the presentation on public access channels of any materials designed for the sale of commercial products or services. Ms. Piety stated that the Code only applies to public access channels in which the City does not have at this time.
Mr. Curry stated that Time Warner and Comcast do not view the offering of the Recovery Network as a problem under the terms of the franchise agreement.
Mr. Earles asked why the Recovery Network should go to Time Warner or Comcast.
Mr. Curry stated that the educational component was considered by many to be a rational use of an underused channel.
Ms. Piety stated she could not find anything that would restrict the broadcast of the channel in the franchise agreement.
Mr. Nelson asked Ms. Price to clarify her concern regarding whether the channel is a for profit entity.
Ms. Price stated in her research concerning the Recovery Network she found it was a very ambitious launching of a new cable television channel. Ms. Price stated she doesn’t feel the channel is appropriate for access channels when there is an outstanding request in this community to make further use of the access channels by the community which has not been granted. Ms. Price also stated PAI opposes the Recovery Network been shown on the EPS channel.
Motion was made by Mr. Leonard and seconded by Mr. Hiltunen, to authorize the use of the EPS Channel for the Recovery Network under the terms discussed. Motion carried unanimously.
Under Old Business, Mr. Leonard addressed the competition resolution stating the resolution supports competition in the multichannel video market in Marion county. Mr. Leonard stated the resolution would make it the Board’s policy to promote competition in that market.
Ms. Price stated that PAI is in favor of the resolution and hopes this resolution will help with the rates and programming.
Mr. Curry asked Ms. Price if the PAI Board was in favor of the competition resolution.
Ms. Price stated that the PAI Board has not voted on the specific resolution, but this generally is the Board’s position.
Mr. Hiltunen, stated he thinks it is important that the Cable Board investigate what it can do to make the market place to be more competitive.
Mr. Rhodes stated he agrees that the City should look for ways to make the market more competitive; however, he is not sure this proposal is the way of doing it.
Mr. Leonard stated the policy states the goal is to create a local multi channel video market which is so competitive that rate regulation is not necessary. Mr. Leonard stated that he acknowledges that the goal is to get the market so competitive that the City does not have to tell a private company how to set its rates.
Motion was made by Mr. Leonard, seconded by Mr. Nelson, to adopt the Competition Resolution. Motion carried unanimously.
Mr. Curry stated that Mr. Leonard and Mr. Nelson are appointed by the Chair to look into the organization of a conference with alternative multichannel video providers.
The next item on the agenda was the issues of Public Comment from the November Board meeting. Ms. Piety stated a question was posed as to whether WAV 53 had ever threatened legal action against the City to obtain carriage of its low power station or whether the Board had to WAV 53 Public Access production to stop any legal action. Ms. Piety stated the answer to both of those questions is no. Ms. Piety stated the second concern was about the City’s use of PEG capacity by splitting the capacity of a channel so that part of the programming is educational programming and part of the programming is governmental programming relying on a recent New York City case. Ms. Piety reviewed that case, and she does not believe it prohibits the split use of the channel. Ms. Piety stated the channel capacity has to be used for PEG purposes, and under the City’s franchise agreements, that is educational or governmental access purposes. Otherwise use of PEG capacity is at the discretion of the Board under both franchise agreements. Finally, Ms. Piety stated the last issue that was whether the Board had any rules or policies for the use of unused capacity on the access channels, Ms. Piety stated she is not aware that the Board has adopted any policies or procedures; the Board has decided whether to allow such use on a case-by-case basis.
The next agenda item was the review of proposed rate filings that were prepared by the Cable Agency back in August. Ms. Piety stated one filing asked the FCC to review the increase adopted by Comcast on August 1st and the other filing was the Evasion Complaint concerning launch fees. Ms. Piety stated in consultation with Rick Maultra and Carlton Curry a decision was made to pursue this issue as part of the franchise fee audit rather than by making rate filings. Ms. Piety stated that both cable operators have been approached concerning the payment of franchise fees on launch fees and neither operator considers any monies received from programming services as revenues. Ms. Piety also stated that Time Warner has stated that, even if the City considers these amounts as revenues, that Time Warner is already paying the City a 5% franchise fee, the maximum that the City can require under federal law. Ms. Piety stated it would be the Agency’s recommendation to expand the scope of Mr. Karrison’s current audit to allow the City to verify how the cable companies are treating the payments. Ms. Piety stated the Agency has solicited a proposal from Mr. Karrison, that would be treated as an amendment to the current audit agreement, to review these monies to assure that they are actually reimbursements and not revenues for the year of 1995 and 1996. Ms. Piety stated Mr. Karrison’s quote to do this review is $10,400.
Mr. Curry suggested that the audit is more appropriate than pursing an Evasion complaint and that it would be more productive to extend Mr. Karrison’s contract in an amount not to exceed $10,400.00. Mr. Curry stated that if the letters recently received from Comcast and Time Warner are verified, that will be the end of the matter. If there is a difference, The cable companies would have an opportunity to make up any shortfalls.
Mr. Maultra stated, in reference to the filing of a 329 form or an Evasion complaint, that the FCC probably will not review either filing given the sunset date of March 1, 1999, for FCC’s rate regulation.
Mr. Leonard asked Mr. Maultra if he knew the bottom line impact this would have on the City.
Mr. Maultra stated it could go to court and of the Cable Agency estimates the issue might involve up to an additional $200,000 in franchise fees.
Mr. Curry stated that if the Board agrees he would extend Mr. Karrsion’s contract in an amount not to exceed $10,400.
Mr. Satterfield asked if the City feels that franchise fees should be on paid on all monies received by Time Warner.
Mr. Curry stated no, just cash for carriage channels.
Mr. Wilson stated that Comcast just delivered the letter today and would like the Board to have an opportunity to review the letter before any steps are made.
The Board decided to table this item until the next meeting.
The next item on the agenda was the survey of customer satisfaction. The Board asked to review the reports and discuss the survey at its January 19, 1999 meeting.
Under New Business, motion was made by Mr. Leonard and seconded by Mr. Rhodes to adopt the new 1999 Board meeting schedule, as submitted. Motion carried unanimously.
The next item on the agenda was the freelance engineer contract. Mr. Montgomery stated that Rick Maultra and himself decided that a part time position would be appropriate for the Engineer position. Mr. Montgomery stated the position has been posted with the City for a while and there have not been any responses. Mr. Montgomery stated the studio would like to hire on a freelance basis an engineer or engineers if needed. Mr. Montgomery stated he believes the position would require a engineer for about 10 hours per week. Mr. Montgomery stated Peggy Piety created a service agreement that could be used at the time of hire. Mr. Montgomery asked the Board to give Rick Maultra and himself the authority to be able to enter in a contractual agreement.
Mr. Curry suggested Mr. Montgomery have signature authority up to $1,000 and Mr. Montgomery and Mr. Maultra have signature authority up to $5,000. An annual retainer would have to be discussed with the Chair of the Board.
Mr. Rhodes asked if these monies would require a transfer of funds in the budget.
Mr. Montgomery stated it would require a transfer of funds out of character 1 and into character 3 and would require a fiscal ordinance.
Motion was made by Mr. Leonard and seconded by Mr. Rhodes, to adopt the Chair’s suggestion that Mr. Montgomery have signature authority up to $1,000 in order to contract for freelance engineering services, with the signatures of both Mr. Montgomery and Mr. Maultra required for expenditures over $1,000 and up to $5,000 for these services.
There being no other business to come before the Board, Mr. Curry adjourned the meeting at 4:20 P.M.
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Mr. Carlton Curry, Chairman
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Mr. Charlie Hiltunen, Chairman
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Mr. David Leonard, Member
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Mr. Steve Nelson, Member
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Mr. Stuart Rhodes, Member
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Janise L. Winston, Recording Secretary
