June 18, 2001

City County Building

Indianapolis, IN

MEMBERS PRESENT

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

MEMBERS ABSENT

Daniel Lynch, Member

OTHERS PRESENT

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

The first item on the agenda to be discussed 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. Stated that earlier in the month the Cable Agency and its counsel sent a letter to Digital Access to advise Digital Access, that in light of its recent correspondence to the City regarding the suspension of its business operations, that the Agency consider their franchise agreement with the City, terminated. Mr. Maultra stated the Cable Agency is asking tem to confirm this. If a response is not forthcoming by June 30 to confirm the termination of their franchise agreement, then the City will consider a non-response the same as acceptance of termination of the franchise.

The Cable Agency has had numerous discussions internally regarding future considerations of the institutional network, also known as INET. Some of those discussions have included the hiring of an INET consultant to assist the City as it continues to explore INET avenues. The Cable Agency is looking at having this consultant review data that the Chief Information Officer’s staff collected in interviews with the Township Fire Departments as it relates to their present and future needs of the INET. The Agency is also looking at a provision in Time Warner’s current agreement with the City that would transfer the INET from analog to digital, at the City’s request, after Time Warner launches digital services which they have. Some of these new provisions would entertain the encryption of data over the INET. The Cable Agency is looking to this same INET consultant as well as Time Warner’s engineer to give us some direction on this provision of the franchise agreement before the Agency act upon it. Additionally, the Agency has had some discussions of INET considerations for future use with TOTALink.

The Agency along with its legal counsel has prepared a resolution the Cable Board’s

Consideration with regard to Time Warner’s non-compliance of the FCC’s Customer Service Standards. Time Warner has been heretofore advised by notice, that if it does not meet compliance by July 31 for falling with the FCC’s Customer Service Standards for telephone answering availability, the City, in accordance to 851 of the City Code, may begin fining Time Warner $750 each day commencing August 1, depending on the pleasure of the Cable Board.

The Cable Agency had been serving as a consumer advocate in mediating a number of cable television complaints received by its office. For dates of May 21^st thru June 18^TH, Cable Agency has received 63 complaints against Time Warner and 78 complaints against Comcast Cablevision.

The next item on the agenda was the Channel 16 Programming report presented by Mr. Montgomery. Mr. Montgomery highlighted some activities of Channel 16 for the Month of May. In May there were 50 hours 24 minutes of Live and Tape delayed meetings. Special Events productions totaled 10 minutes and 1 minutes. Series programming totaled 6 hours.

In the area of In-Kind Production, Channel 16 had 2 hours and 55 minutes. Total new production was 67 hours and 50 minutes.

The next item on the agenda was the Cable Operator’s Management Report. Mrs. Johnston stated Time Warner had a slight loss of customers in the month of May. Stating Time Warner completed 100% of installation within 7 days. Incoming calls for the month was 51,145 received and 48,465 handled; 90.20% were answered in 30 seconds. Service calls: Time Warner received 3,782 calls; scheduled 2,324 and completed 2,155; 85% within 24 hours. Time Warner had 42 outages.

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. Apple stated that Comcast had a gain of customer in the month of May. Incoming calls for the month were 61,756 received and 58,268 handled. Comcast had 94 outages including 2 planned outages. Comcast received and scheduled 3,783 service calls and completed 2,205; 99.9% within 36 hours or by customer request. Installations: Comcast scheduled 3,018 and completed 2,987; 100% within 7 days or less by customer request. See construction report.

 Comcast also had 99 Cable Franchise complaints for the month of May.

The next item on the agenda was the TOTALink presentation. Mr. Peter Jablonsky stated TOTALink remains in pre-construction phase of operations. TOTALink continues to map the city, conduct pre-engineering surveys and have installed limited amounts of anchors and support strand in strategic areas. TOTALink plan on continuing in this pre-construction phase until the pole owners and other attachers provide sufficient attachment space on the poles. Progress on that issue has not improved, instead of becoming more productive as promised by the pole owners, things remain the same. TOTALink cannot commence meaningful construction of the network until this necessary work occurs.

TOTALink’s Central Office/ Headend is located at 250 West North Street. Renovations of that building will be coordinated with our network construction schedule so that when our first nodes are released to market, that CO/HE facility will then be tested and ready to supply services there.

The 20 proposed all fiber, Upgraded I-Net locations have been reviewed by our engineering department.

The next item on the agenda was the Modification of TOTALink build out plan. Mr. Bill Roberts stated TOTALink of Indiana proposes to modify its Construction Completion Schedule for the City of Indianapolis- Marion County to permit the network construction to be performed in two sections Area A and Area B.

Area A will consist of approximately 2,400 strand miles (subject to adjustment for actual design) passing approximately 232,000 residences and approximately 22,500 businesses in an area depicted on the attached map.

Area B will consist of the remainder of Indianapolis-Marion County.

TOTALink proposes to construct the network to serve Area A, commencing on or before September 28, 2001, with a projected completion date of February 1, 2005.

TOTALink agrees to present to the Cable Franchise Board a detailed Buildout Plan for Area B on or before September 1, 2003. Further, TOTALink agrees to commence network construction of Area B on or before February 1, 2004, subject to factors beyond the control of TOTALink.

Notwithstanding the foregoing, in the event TOTALink has not begun network construction of AREA B on or before February 1, 2004, or completed construction of Area B by the target date of September 28, 2008, TOTALink shall be permitted to operate the network in AREA A and in activated portions of AREA B under the terms of the Franchise Agreement.

In the event TOTALink has not completed construction of Area B by the target date of September 28, 2008 and the Board does not approve a further extension, then the Security Deposit presently held by the City of $250,000 will be forfeited.

TOTALink, as a further commitment to the City, will agree to provide the Upgraded INET service to up forty(40) locations as designated by the City to be connected as the network buildout reaches each location, subject to the distance and other limitations contained in the Franchise Agreement for the Upgraded INET.

Mr. Curry recessed this agenda item until there were a quorum for the Cable Franchise Board.

The next item on the agenda was the ETC report. Mr. Earl Harris stated regarding New/Future Programming, the three part series on the IPS Learning Institute would begin in July. The theme of institute was "What I is Happening to Youth in America, Indiana, and IPS?" It featured speakers and education experts from around the country. Part 1 is the Welcome and a Panel Discussion focusing on "What is Happening to Youth in America?" Part 2 features Dr. Richard Jones for the International Center for Leadership in Education, Inc. speaking on the impact of literacy. Part 3 was a presentation by Dr. Eric Cooper and Dr. Yvette Jackson from the National Urban Alliance of literacy.

The ETC has been approached about showing a series about career options in Indianapolis. It will be especially aimed at keeping young people from leaving the city after graduation. A future update will be given.

Ivy Tech has also expressed interest in putting 4 courses on ETC. A future update will be given.

The ETC Playback Site will once again be moving. The last week of June, programming on the two channels will be suspended temporarily so that equipment can be moved. The new playback site will be located on the Butler University Campus in the Richard M. Fairbanks Center for Communication and Technology.

The next item on the agenda was the CIRRI grant request. Jed Duvall stated Central Indiana Radio Reading, Inc. ( CIRRI) IN 1982, today’s Indiana Reading and Information Services(IRIS) continues it 20-year service as an around the- clock communications link for print-impaired people. Persons who cannot read normal print due to blindness, low vision, physical impairments, learning disorders or illiteracy keep in touch with local news and information as presented by IRIS volunteer readers. Every day, IRIS broadcasts the regional newspapers and many other Indianapolis Publications. Listeners are provided with special radio receivers free of charge to use as long as they are needed. One must live within 45 miles of Indianapolis to receive the broadcasts and there is an application requiring medical or social certification of print impairment.

Originally hosed at Butler University, the organization then-named as CIRRI merged with WFYI in December of 1995 and has since operated completely our to the WFYI TelePlex in downtown Indianapolis. This unique merger has not only resulted in strengthening IRIS’s ability to sustain this important service, but has also led to a 50% increase in broadcast listeners. It also led to a significant expansion effort, which now enables people throughout the entire state of Indiana to access the service through an on-demand, dial up service. This expansion to a statewide service led to a name change to better reflect its new reach.

Don Newman stated IRIS has a paid staff of two full-time and four part-time employees who manage the day –to day operations. IRIS exists on an annual operating budget of only $117,500 thanks to the merger with WFYI that eliminated facilities expense, as we11 as engineering, accounting and administrative overhead. Nearly 250 individual and corporate donors also support IRIS annually.

Stating IRIS relies on City-County Council funding through the Cable Franchise Board Grant process to supplement the salaries of its full-time staff, provide promotional materials to potential users, support volunteer services, purchase supplies and new broadcast equipment, acquire national programming as well as to help underwrite the operational cost of maintaining increasing number (currently eleven) incoming phone limes needed for the local Dial-Up service.

IRIS asked for a grant in the amount of $35,000 for annual operating support. This represents the first time IRIS has requested an increase in over ten years. The increase requested to help cover increasing costs of operations including personnel, promotion and upkeep of broadcast equipment. It will also help too cover the costs of increased demand on special receivers provided free of charge to our broadcast service users. Each unit costs IRIS over $90. Many of the units have operated far past their expected lifecycle and replacements are being requested an increasing rate. In order for IRIS to meet the increasing demand for this important service, IRIS must not only purchase equipment for new users, IRIS must replace worn out units. The additional financial support will enable IRIS to replace approximately 100 units.

Stuart Rhodes arrived.

Motion was made by Mr. Blum, seconded by Mr. Rhodes to move forward with IRIS $35,000 grant request by Board action. Motion carried unanimously.

The next item on the agenda was the approval of minutes for the Cable Board’s May 21^st, 2001. Motion was made by Mr. Blum, seconded by Mr. Rhodes, to approve minutes. Motion carried unanimously.

In continue of the TOTALink recess, regarding Construction Completion schedule modification. Mr. Roberts stated TOTALink of Indiana proposes to modify its Construction Completion Schedule for the City of Indianapolis-Marion County to permit the network construction to be performed in two sections-Area A and Area B.

Mr. Curry stated what this proposal does is change the TOTALink plan from a 5 year activity to a two step 71/2 year activity. Also stating it offers a consideration for the Board approving this adding forfeiture of the security deposit if these dates are not met.

Mr. Bill Roberts stated TOTALink has taken into consideration that the Cable Franchise Board and the City County Council granted two Franchises last November, stating in part

of the two franchises the process was a negotiation for each of the two companies to provide an enhance upgraded institutional network for the use of the City. Stating each of the two companies was to provide a service of up to 20 locations each. Mr. Roberts stated since one of the companies will not provide service in the Indianapolis area that TOTALink in their proposal will provide service up to the total 40 locations.

Mr. Blum stated asked since TOTALink is still beholding to (others) in regards to TOTALink begin service he asked what insurance does TOTALink have from (others) TOTALink will be able to begin construction in September.

Mr. Roberts stated by late summer TOTALink plans to have significant amount of work done. Also stating that TOTALink has had conversations and negotiations with IPL about ways to expedite the process to begin construction. Stating that IPL is very anxious and receptive in regards of TOTALink construction plans.

Mr. Smashey from the public stated, his concerns are that, Comcast at home being a premium cable modem service finds itself being a monopoly service for the next 71/2 years. Stating he hopes that TOTALink will do their build out quickly to provide more competition.

Mr. Rhodes stated there are miles of fiber in the community and there are other providers and all types of competition in the area. Stating to refer to Comcast, Time Warner and TOTALink is a monopouly is a misleading statement

Motion was made by Mr. Rhodes, seconded by Mr. Blum, to approve the TOTALink amendment to the franchise. Motion carried unanimously.

Mr. Toby McClamroch clarified the last motion was to approve the modified buildout and not the Franchise Agreement.

Mr. Curry stated that is correct.

Mr. Rhodes asked, "essentially if modifying the buildout would amend the Franchise?

Mr. Elrod stated, "No" the board does not amend the franchise, stating the Board has the authority to modify the buildout.

Mr. Rhodes stated that was the intent of his motion.

Therefore, by consent the motion was restated to read: The Cable Board approves the revised construction schedule of TOTALink as submitted.

The next item on the agenda was the Inet Consultant, Mr. Maultra stated that Columbia Telecommunications Corporation (CTC) has provided a proposal for the Cable Communications Agency of the City of Indianapolis and Marion County with telecommunications systems engineering consulting services.

Mr. Maultra stated the Cable Agency oversees franchises with Time Warner, Comcast, and TOTALink to provide cable services to the City of Indianapolis and Marion County. Stating the Agency would like to develop an integrated Institutional Network to meet the needs of the City/County government and community in coordination with the cable operators. Time Warner has an existing-I Net over coaxial cable that is used to provide video training for the Fire Department. There is a requirement in the Comcast franchise for an I-Net that has not yet been developed. TOTALink is required by franchise to provide an I-Net over fiber to 20 facilities.

Rick Maultra stated the Agency would like to employ a consultant to take a look at the data and make some recommendations on how the institutional network should look for Comcast as it pertains to the needs of the Township fire department.

Secondly, the scope of work the Agency hopes the consultant will look at is the Time Warner Franchise regarding the conversion of the analog I-Net upon launch of digital services.

Mr. Maultra stated the total estimated costs from the consultant for the work to be done is $3,340 stating the Cable has monies available in its budget to cover the amount.

Motion was made by Mr. Rhodes, seconded by Mr. Blum to approve the request of I-Net consultant not to exceed $3,500. Motion carried unanimously.

The next item on the agenda is the Comcast rate order, Mr. Maultra stated the rate order in regards to Comcast have been outstanding for some time. Stating the consultant that was hired (Action Audit) stating the recommendations of Action Audits were to approve Comcast FCC 1240 filing and 1205.

Mr. Maultra recommended that the Board approve Comcast 1240 and 1205 rate order.

Motion was made Mr. Hiltunen, seconded by Mr. Blum to approve Comcast 1240 and 1205 rate order. Motion carried unanimously.

The next item on the agenda was the Non-Compliance of Time Warner. Mr. Elrod stated Time Warner reported that during the month of April 2001, Time Warner failed to meet customer service standards regarding telephone answer time within 30 seconds, 90% of the time under normal operating conditions. Records provided by Time Warner indicate that Time Warner has failed to comply with these standards consecutive months.

Also stating that if, at this meeting Time Warner reports that it has failed to meet customer services standards for the May 2001, the Board will consider a resolution finding

Stating Time Warner has reported by current report that they are not out of compliance therefore Mr. Elrod suggested the Board table the resolution.

Motion was made by Mr. Rhodes, seconded by Mr. Hiltunen, to table the resolution indefinitely. Motion carried unanimously.

Under public comment Mr. Smashey complained of the channel movement across tiers. Mr. Smashey also submitted a written submission of complaint of dissatisfaction. Stating Time Warner is in violations of FCC Customer Services Standards. Stating he wrote up a federal arrest warrant for extortion. He also stated he is feed up with wanting to get billing issues revolved with Time Warner.

Mr. Carl Kaksuleff stated he is a representative of Public Access Inc., stating PAI is hoping that a government channel will be available for their use some day. Also, stated he had several of complaints against Comcast high speed Internet and Comcast not having Univison on a basic tier. Also question about the Pacer foundation being funded out of franchise fees.

There were no further business to come before the Board: Mr. Curry adjourned the meeting at 4:25 p.m.