August 21, 1999

City County Building
Indianapolis, IN 46204

MEMBERS PRESENT:

Carlton Curry, Chairman
David Leonard, Member
Gretchen Gutman, Member
Stuart Rhodes, Member

MEMBERS ABSENT:

Charlie Hiltunen, Member

Others Present: 

Chairman Curry brought the meeting to order at 2:30 P.M.

The first agenda item was the approval of minutes for the Cable Board’s August 16, 1999 meeting. Motion was made by Mr. Leonard and seconded by Chairman Curry, to approve the minutes of the Board’s August 16^th, 1999 meeting. Motion carried unanimously.

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 last month. The Cable Communications Agency and Channel 16 staff recently facilitated a tour with dignitaries from Madagascar who visited Indianapolis recently in conjunction with the State Legislative Conference that was held here. The Agency was interviewed by their state run television as they were curious about the local government television station and how it provides a window to the legislative process in our community. TV 16 producer Adriana De Aguiar was available to help in interpretation as our guests spoke their native French. A TV crew from Madagascar filmed the tour and along with the interview they plan to feature their visit to Channel 16 on their state run TV network. The tour was facilitated in conjunction with the U.S. Information Services Agency.

The Cable Agency and its counsel reviewed Comcast’s latest response in its continuing dialogue to resolve possible non-compliance issues with the current franchise agreement. The Agency has sent Comcast a 30 day notice letter to address curing the current non-compliance matter.

The Cable Agency assisted Corporation Counsel in preparing demand letter to Time Warner for back franchise fees owed to the City of Indianapolis per Time Warner’s 1996 franchise agreement with the City.

The Cable Agency and Channel 16 prepared and sent a letter to Time Warner as we continue to dialogue with the operators in preparation for the launching of the upcoming access channel. Specifically, the Agency was seeking clarification as to the technical readiness of Time Warner for the launching of this new channel and if the Agency can assist them in any way in addressing technical preparedness.

The Cable Agency and TV 16 presented its year 2000 budget two weeks ago to the Finance and Administrative Committee of the City-County Council. Cable Board Chairman Carlton Curry presented the annual budget to the committee. Most of the Committee’s questions pertained to the Agency’s budget increase whereas $75,000 has been set aside for Public Access of Indianapolis (PAI). PAI was represented by their president Andrea Price and PAI Board member Jim Smashey who addressed the Council Committee.

The Cable Agency took a number of cable complaints over the past month and worked with Comcast and Time Warner in an effort to resolve those matters.

The next item on the agenda was the Channel 16 Programming Report presented by Mr. Maultra. Mr. Maultra highlighted some of the activities of Channel 16 for the month of July. In the area of In-Kind Production, Channel 16 had 11 hours and 25 minutes. Series Programs totaled 3 hours. Total new production for the month of July was 744 hours.

Under additional notes, Channel 16 currently producing Trash and Weeds Infomercial which covers heavy trash rules, weed ordinances and abandoned vehicle guidelines for use by the Mayor’s Action Center and presentation on Channel 16. Also, currently producing A City of Many , designed as an overview video for the International Center of Indianapolis. This in-depth thirty minute show is being produced by Adriana De Aguiar.

The next item on the agenda was the Cable Operator’s Report. Mrs. Shary Johnston stated for the month of July. Time Warner lost customers in its full cable service. Installations: Time Warner had scheduled 3,267 and completed 2,595. Incoming calls for the month were 38,314 with 95.5% answered in 30 seconds. Busy rate .092% . Service calls for the month were 2,579 received and 1,492 completed. Time Warner had 4 planned outages and 56 total outages. Mrs. Johnston stated that Time Warner had no new construction for the month of July.

 he Community Involvement report supports a lot of different community events and programming (see report).

Chairman Curry asked why the number of subscriber outage hours is down.

Mrs. Johnston stated she will check.

The next item on the Agenda was the Comcast’s Management Report. Mr. Apple stated the FCC forms 1240 and 1205, which Comcast is required to file to determine maximum permitted rates for limited basic service and equipment, have been filed with the City. Mr. Apple stated the filing came back that Comcast can take increases on limited basic service and on services and equipment. Mr. Apple stated that Comcast has decided not to increase rates on any services or pieces of equipment for the coming year of November 1, 1999 to November of 2000.

Mr. Apple stated that Comcast experienced a slight drop of full basic customer in July, stating Comcast ended the month with 111,560 subscribers. Mr. Apple also stated that July was a good month for the call center, stating 88.52% of calls were answered in 30 seconds or less, busy rate was 1.2%. Comcast had 145 outages with 17 planned outages. Comcast received and scheduled 4,527 calls and completed 3,732; 99.7% were completed in 36 hours or by customer request. Comcast scheduled 3,597 installations and 3,485 were completed.

Mr. Apple stated that Comcast had 60 hours of leased access programming, which is also known as the Comcast channel. WAV 53 had 152.5 of locally produced programming. Comcast aired and produced 11 public announcements and 15 newsmaker segments. For Comcast events and sponsorships; see report.

The next item on the agenda was the ETC Report. Mr. Harris stated ETC planning committee meeting will be conducted on August 20^th. Mr. Montgomery asked to attend the meeting and has been informed of the meeting time and location. Mr. Harris stated K-12 Schools and Universities will begin the new school year in the net few weeks, which means the return of many programs, including courses from IUPUI and the IPS Superintendent’s live call-in show "IPS Open Line". The ETC also recorded and will be showing the August 12th U.S. Department of Education Teleconference on Safe Schools.

Mr. Harris stated the ETC has re-evaluated its automated playback equipment. The ETC is making a new request for Capital Funding in the amount of $80,000 for automated playback equipment for both educational access channels similar to what is used by WCTY, Channel 16. With respect to ETC Base Funding, last month ETC formally requested increasing the annual base funding from the Cable Franchise Board by $20,000 to $50,000 starting with the current fiscal year. These funds will be used for student intern stipends, master control playback, and programming expenses.

Mr. Curry asked for a specific list of equipment that would be purchased with additional funding.

Mr. Curry asked the Board whether it would support the additional $20,000 from this year’s cable franchise appropriation for ETC and secondly whether the Board would support a capital request of $80,000 which probably will come from a special capital account.

Mr. Leonard asked how the $20,000 increase will affect the 1999 budget?

Mr. Curry stated the money will come out of character 3, and it’s within money available that the Cable Agency does not expect to use.

Mr. Leonard asked, Mr. Harris if this $50,000 amount would be what ETC would ask for annually or would it go back to $30,000 after the year of 1999.

Mr. Harris stated that ETC would like $50,000 to be the base and ask for this amount yearly.

Motion was made by Mr. Rhodes and seconded by Mr. Leonard, to approve the $20,000 increase for the operating funds for ETC. Motion carried unanimously.

Mr. Curry asked the Board to authorize the Chair to initiate a fiscal proposal for equipment for the second channel.

Motion was made by Mr. Rhodes and seconded by Mr. Leonard, to authorize Chaiman Curry to initiate a fiscal ordinance for $80,000 for ETC and the second channel. Motion carried unanimously.

 Under Old Business, Ms. Piety stated in reference to Time Warner audit issues that at the last board meeting the Board authorized Ms. Piety to send out a demand letter to Time Warner with respect to amounts collected by Time Warner as franchise fees, which Time Warner did not include in gross revenues for the period of November 1, 1997 through and including June 30^th 1999. Ms. Piety stated the copy of the letter is included in the Board packet.

Mr. Curry stated this matter has been on the Board agenda for a while. Mr. Curry stated that the Chair would like to negotiate with Time Warner to resolve the franchise fee issue

without going through the courts.

Motion was made by Mr. Leonard and seconded by Mr. Rhodes, that the chairman of the Board be authorized to negotiate with Time Warner. Motion carried unanimously.

Under new business, Mr. Maultra discussed Comcast 1240 and 1205 submissions. Mr. Maultra stated Comcast has submitted the 1240 and 1205 forms to the Cable Agency. The 1240 is the proposed rate increases for the limited basic service and 1205 form relates to equipment. Mr. Maultra stated that in receiving the letter it show the maximum to current rate. Mr. Maultra requested a letter from Comcast stating they would not take the rate increase for limited basic and equipment up to November 1^st 2000.

Ms. Piety stated the Board does have the authority to review the rates and to determine if the maximum permitted rates that are submitted by Comcast are the appropriate ones. Ms. Piety stated if the Board does not review these rates in the next twelve months, then the rates that are presented will become the baseline for any future increases. Ms. Piety stated that Comcast filings have been in accord with the FCC regulations in the last two years.

Mr. Curry stated that there is time for this issue and would like the Board to come to some local understanding of this item.

Under public comment, Mr. Chandler stated he has his own firm and he will be appealing the ruling of the franchise fees. Mr. Chandler also stated that it’s not fair subscribers have to pay the franchise fee.

Mr. Kevin Earles asked if the government has been given the fourth access. Mr. Earles also asked why PAI cannot share the fourth channel with WCTY. Mr. Earles also asked what the purpose of the RFI. Mr. Earles also asked why the Recover Network is on an access channel.

Mr. Curry stated in regards to sharing the fourth channel, the user would have to pertain to government or educational and PAI falls into neither as a category. Mr. Curry stated that the fourth channel has been given to government. Mr. Curry also stated the purpose of the RFI was in case that the City did not have use for the fourth channel.

Ms. Andrea Price stated she appreciated the time Mr. Curry took to visit the Bloomington Community Access Center on July 30, 1999. Ms. Price stated that there is an outstanding issue regarding designation of the new access channel, and some clarification is needed on the access channel designations. She stated that to date there has been no Board decision on PAI’s proposal regarding channel use. Nor has there been a response to PAI request to have Joe Van Eaton review PAI’s argument for community use of the channel. Also Ms. Price stated that Mr. Curry has formally stated the response he received is that one lawyer agrees with PAI assertion that it is possible for the new channel to be used for community access, and one does not. Of the three lawyers who reviewed PAI argument, including legal counsel for a cable operator, all three agree with PAI. Ms. Price also stated informally Chairman Curry has made a distinction between giving PAI the entire channel, and letting the community use a portion of it.

Ms. Price requested the following be put on next month’s agenda for discussion and action:

Review of legal opinions on using the entire channel for community programming.

Review of legal opinions on using a portion of the channel for community access.

Board action on community use of new access channel.

Ms. Price stated despite the fact that the Cable Franchise Board has not taken any action on the use of the new access channel, the Board has talked of a decision to turn the channel over to Channel 16. Ms. Price also stated her understanding is that the channel was designated as an education access channel that Public Safety and The Recovery Network also use it. She stated Comcast calls the channel the City Government Channel and now calls the (same) programming on it "public access."

Mr. James Smashey stated that Channel 23 needs a name or title. Mr. Smashey also stated that cable operators need to inform subscribers in advance when billing changes. Mr. Smashey also stated that the tenants of his apartment building, including himself, have been paying incorrect cable amounts.

There being no further business to come before the Board, Mr. Curry adjourned the meeting at 3:45 pm.

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Mr. Carlton Curry, Chairman

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Ms. Gretchen Gutman, Member

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Mr. David Leonard, Member

______________absent______________
Mr. Charlie Hiltunen, Member

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Mr. Stuart Rhodes, Member

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Ms. Janise Winston, Recording Secretary