August 20^th, 2001

City County Building
Indianapolis IN 46204

MEMBERS PRESENT:

Carlton Curry, Chairman
Stuart Rhodes, Member
Peter Blum, Member
Charlie Hiltunen, Member
Daniel Lynch, Member

OTHERS PRESENT:

SUMMARY OF DISCUSSION

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

The first item on the agenda was the approval of minutes for the Cable Board’s July 23rd, 2001. Motion was made by Mr. Blum, seconded by Chairman Curry, to approve the minutes. 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. Stating Comcast has submitted to the Cable Agency its rate filing of Federal Communications Forms 1240 and 1205. In its letter, Comcast indicates it has not yet determined the extent of any actual adjustments it may take, although further into the document, Comcast notes that the "current year rate increase will be implemented November 1, 2001. Stating in any event, the Agency will take up this filing as an action item to be addressed later on in the agenda.

The Cable Agency, along with Chairman Curry, presented its 2001 budget before the Finance & Administrative Committee last Tuesday for Approval. Prior to that presentation, the Agency had spent a great deal of time over the past month in planning its 2002 budget.

Mr. Maultra stated the Cable Agency set up a meeting between the interested parties in an effort to resolve the dispute between the Educational Television Cooperative (ETC) and Time Warner with regard to ETC’s connection to the Time Warner system to get ETC back on the air. The meeting at Time Warner involved officials from their cable system, ETC officials, David Fort of Butler’s WTBU, Bob Borgmann, Bob Elrod and Rick Maultra. Mr. Maultra stated the meeting was assessed in such a way to say that there are a number of options to be investigated or considered in how to reconnect ETC to the Time Warner cable system.

The Cable Agency has been involved in a variety of duties as it pertains to this year’s annual conference of the National Association of Telecommunications Officers & Advisors. Stating these included setting up some of the conference session speakers, preparing the annual report of the Legal Counsel Committee as well as organizing the winter addition of the NATOA Journal.

In consultation with our legal counsel and the NATOA Board, Indianapolis has signed on to two amicus briefs that involve two separate court proceedings. These matters are of dire importance to municipal rights and their ability to carry out their local authority. In Santa Cruz v. Charter Communications, what is at issue are various municipality rights of authority with regard cable transfers. This includes, but is not limited to; an LFA requesting additional information from the transferee, and requesting pertinent information as to the financial qualifications of the transferee.

In the matter of Qwest Communications v Auburn, some of the issues of concern to cities include whether cities can still require bonding and insurance and inquire about the financial integrity of an applicant. Stating the Cable Agency seeks to clarify that cities can still require that the applicant have appropriate certifications from the state public utility commissions, (puc’s) and licenses from the FCC. With regard to applications, municipalities seek to clarify that cities can still require maps of facilities and request administrative costs related to processing the application.

The Cable Communications Agency has been serving as a consumer advocate to Indianapolis and Marion County cable subscribers in assisting them in mediated cable complaints on their behalf.

The next item on the agenda was the Channel 16’s Government Access programming report presented by Mr. Montgomery. Mr. Montgomery highlighted some activities of Channel 16 for the month of July. In July there were 49 hours 6 minutes of Live and Tape delayed meetings. Special Events productions totaled 12 hours and 48 minutes. Series programming totaled 3 hours and 30 minutes.

In the area of In-Kind Production, Channel 16 had 54 minutes. Total new production was 66 hours and 18 minutes. Mr. Montgomery provided the Board with Channel 16’s 2001 Mid-Year activity summary.

The next item on the agenda was the Cable Operator’s Management Report. Mr. Al Aldridge reported Time Warner had a loss of 1260 customers for the month. Stating Time Warner scheduled 5,209 installs and completed 3,767. Incoming calls for the month was 55,277 and Time Warner answered 94.20% within 30 seconds. Service calls:

Time Warner received 4,965 calls; scheduled 2,774 and completed 2,586; 88.0% within 24 hours. Time Warner had 30 unplanned outages for the month.

The Community Involvement report supports a list of different community events and programming (see report).

The next item on the agenda was the Comcast Management Report. Mr. Mark Apple stated Comcast had a slight loss of customers in the month of July. Incoming calls for the month were 70,369 received and 64,483 handled. Comcast had 214 outages all unplanned outages. Comcast received 5,486 service calls and scheduled 2,894 and completed 2,894; 99.2% within 36 hours or by customer request. Installations: Comcast scheduled 3,576 and completed 2,582; 100% within 7 days or less by customer request.

The next item on the agenda was the TOTALink presentation. Mr. Bill Roberts stated TOTALink continues to be in the pre-construction phase. As reported last month, after significant pre-construction mapping and design activity representing a potential of two to three years of actual network installation under TOTALink’s current build out plan, TOTALink has implemented a scale back of staffing and a suspension of pre-construction activities.

TOTALink is currently working with pole owners and other pole attachers (including IPL and Time Warner Cable) to suspend make ready engineering and construction. Once that is complete, TOTALink anticipates taking a step back to address with all parties more fundamental issue related to overall costs, timing and coordination of pole attachments in the Marion County area.

Mr. Roberts stated at this time, TOTALink is currently monitoring the current state of the financial capital markets, which have a direct bearing on the timing of TOTALink’s move from pre-construction to construction. If there are any significant new developments, TOTALink will provide progress updates to the Cable Communications Agency throughout the month and at next month’s Cable Franchise Board meeting.

The next item on the agenda was the ETC report. Mr. Harris presented the Board with ETC playback site timeline. Outlining the events that have taken place with Time Warner and ETC in the last several months. Mr. Harris also provided the board with a list of local Educational Organizations currently producing programming.

Mr. Harris stated ETC has received it last years funding request.

In May, the ETC requesting its Twelfth Public Purpose Grant from the City-County Council for the amount of $50,000.

Under old business, Mr. Maultra addressed Comcast rate filing. Mr. Maultra stated the Cable Communications Agency is recommending that the Cable Franchise Board approve funds in the amount of $6,250 to review Comcast’s 2001 rate filing of Federal Communications Commission (FCC) Forms 1240 and 1205. These forms update the maximum permitted rates for regulated cable services and Form 1205 determines the maximum permitted rates for regulated equipment and installation costs for the year 2002.

After a cursory review of the submitted forms by Action Audits and the Cable Agency, it is apparent that Comcast did change its methodology for calculating Form 1205 in this current filing so as to comply with the recommendations made by the City’s consultant. Mr. Maultra stated that recommendation had to do with annual hours calculated for converter repairs.

The Cable Agency was very pleased with the work product and subsequent follow up performed by Action Audits for last year’s filing by Comcast and would ask again that the Cable Board approve funds for this year’s filing review. Stating the monies will come out of this year’s character (3) for which the Agency has adequate funds.

Motion was made by Mr. Hiltunen, seconded by Mr. Rhodes, to approve funds in the amount of $6,250, to Action Audits, to review Comcast’s 2001 rate filing. Motion carried unanimously.

Also, under Old business, Mr. Curry stated that in the Comcast report it shows they are not within FCC standards, asking Mr. Maultra if his office has prepared a draft of information that the Cable Board could look at for the next cable board meeting.

Mr. Maultra stated he and Bob Borgmann has spoken and find that Comcast has gone three consecutive months below FCC customer service standards for answering customers line 30 seconds or less; 90% of the time. Mr. Maultra recommends that Comcast come into compliance by the Cable Board October meeting.

Mr. Borgmann presented a draft letter, to the Cable Franchise Board, finding Comcast out of compliance of the FCC standards.

Motion was made by Mr. Blum, seconded by Mr. Hiltunen, to allow Mr. Borgmann to proceed with his draft letter subject to the Chair approval and to commence the notice time. Motion carried unanimously.

The next item on the agenda was Channel 16 PEG grant request. Mr. Montgomery stated after consulting with engineer Jack Tapp to confirm Channel 16’s equipment replacement schedule, he requested the PEG grant funding the several different items that will allow the old studio cameras with switchable cameras that provide digital output.

Mr. Montgomery stated that if the Cable Franchise Board approves the funding of $92,112.00 and the City-County subsequently approves the requisite fiscal ordinance, the purchase would be made as a public bid. Stating the bid responses will be evaluated by staff and recommended vendors for each line item, and then will be presented to the Cable Franchise Board for ultimate awarding of bids.

Motion was made by Rhodes, seconded by Mr. Hiltunen, to approve $92,112.00 from the PEG grant fund for Channel 16 equipment purchase. Motion carried unanimously.

Under public comment, Mark Harris, Marc Wellington, Amy Warner, Cathy Long, Chuck Fearnow, James Smashey and Andrea Price all spoke on behalf of ETC. Stating ETC has a positive role in the community hoping to see the connection problem with ETC and Time Warner resolved.

There were no further businesses to come before the board; Mr. Curry adjourned the meeting at 4:00p.m.