April 15^th, 2002

MEMBERS PRESENT

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

OTHERS PRESENT

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

The first item on the agenda was the Cable Agency Report. Mr. Maultra stated the Cable Communications Agency and its counsel sent a request for additional information as it pertains to the Comcast/AT&T transfer process. The City had up to 30 days to make the request upon receipt of the 394 document. Comcast’s corporate office has indicated receipt of the request and that a response should be received within ten days.

Staff from WCTY and the Agency attended a demonstration presented by SCT (systems computer technology) on webstreaming our two government access channels as well as video on demand applications with webstreaming. The Agency, WCTY, the CIO’s office and SCT will continue to have discussions regarding this application after which SCT will make a presentation to the Cable Franchise Board.

Mr. Maultra stated that in the light of recent FCC ruling classifying cable modem service as an "Information service" both operators have notified the Cable Communications Agency that they no longer will be paying or collecting franchise fees with regard to this service. The Agency has requested from both operators to apply an estimate for the loss of franchise fees paid to the City this year and if possible, the next two years based on growth and deployment projections. Both operators have indicated a willingness to do so and the Cable Agency in turn, will submit that data to the Controller’s Office who is a ware of the situation and requested the said data.

Chairman Curry and Mr. Maultra met with Time Warner officials as they presented to us the changes they are implementing this month as it relates to their premium services moving exclusively to digital. Along with the premium channel migration, Time Warner will be offering enhanced services such as video on demand (VOD), digital video recorders (DVRs) and subscription video on demand (SVOD). The Agency included some of the details to this launch in your Cable Board packets. Time Warner may want to elaborate more on this launch is their report.

The Cable Agency has started its preliminary of what will be many meetings with the Controller’s Office to discuss the 2003budget. Additionally, as requested our office, specifically Janise Winston-Thompson, has been working on the Excel Chart Wizard for the Cable Agency complaint summaries.

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

The next item on 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 April. In April there were 52 hours 14 minutes of Live and Tape delayed meetings. Special Events productions totaled 18 hours and 46 minutes. Series programming totaled 4 hours and 30 minutes.

In-Kind Services was 3 hours and 25 minutes. Total New Productions was 78 hours and 55 minutes.

The next item on the agenda was the Cable Operator’s Management Report. Mr. Al Aldridge stated Time Warner met all standards according to the NCTA.

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 Comcast had a gain of customers. Incoming calls for the month were at 90.21% answered within 30 seconds or less. Busy rate 0.8%. Service Interruptions were

50 unplanned and 99.99% system reliability. Service calls were 99.86% of total service addressed within next business day. Comcast had 74 complaints for the month.

The Event and Sponsorships report supports a list of different events (see report).

The next item on the agenda was the TOTALink presentation. Mr. Roberts stated TotaLink of Indiana, LLC, has not commenced any new activity during the past month under the provisions of TotaLink's franchise for Indianapolis and Marion County. Indicators in the financial markets do not cause us to expect more favorable conditions for the telecom industry until the second half of 2002.

TOTALink’s relations with AES (formerly IPL) have not improved. TOTALink is seeking from IPL/AES an accounting of over $2.0 million paid during 2001 make-ready engineering and re-arrangement. In conversations and written correspondence, TOTALink has requested this information since August of 2001 and IPL/AES has not been responsive to these requests. Further action will be necessary and is forthcoming.

TOTALink, along with its owners, Utilicom Networks, and partner, Vectren Corporation, are closely monitoring the financial markets. TOTALink is hopeful that during the second half of this year, conditions may be more favorable to the development of a fiber-optic based broadband network by TOTALink for commercial and residential customers in Indianapolis and Marion County.

The next item on the agenda was the ETC report. Ms. Tamika Williams stated Bill King from Time-Warner notified ETC through and e-mail that TWC has completed the connections needed for ETC’s move to Butler University. The ETC Playback site move will take place later this moth. ETC will provide notification before the move takes place.

The University of Indianapolis has produced a new show "U of I FYI". It is a news magazine type show with studio and field segments on news, sports, and features. It is a bi-weekly production. The show is on ETC 2.

IPS Television will be producing the "2002 IPS Talent Showcase". The annual event will take place live from Crispus Attucks Middle School. It will feature performances by IPS students, showcasing their talents in the areas of music, dance, and dramatic performances. The showcases will be live on ETC 1 on May 17^th, from 6-7pm.

Under business, request of monies (NATOA) legal funds for cable Modem Mr. Maultra stated on March 14 2002, the FCC adopted a major ruling that classified cable modem service as an information service. Stating as a result of that ruling the FCC said that regarding franchise fees, revenues from cable modem service should not be used in computing franchise fees.

On March 25 and April 1, 2002, Comcast and Time Warner respectively advised the City that it would no longer collect and pay franchise fees for cable modem revenue. The Cable Agency has requested from both operators what that franchise fee amount would be for this year and projected for the next two years with respect to that revenue generated on cable modem service.

Based upon the franchise fee projections the Cable Agency submitted to the Controller’s Office, the estimated loss of franchise fee revenue generated from this service over the course of 12 months to be roughly one million dollars.

The National Association of Telecommunication Officers & Advisors, as well as the National League of Cities (both of which Indianapolis is a member) and other organizations are coordinating efforts in addressing and possibly overturning the FCC’s ruling.

Finally Mr. Maultra stated NATOA is soliciting monies form member cities for this legal matter and Mr. Maultra asked the Cable Franchise Board to give consideration in approving that the City of Indianapolis contribute $5,000 to this cause. Stating the Cable Agency have monies budgeted in its character 3 to cover this expense.

Motion was made by Mr. Hiltunen, seconded by Mr. Blum to approve $5,000 legal fees to NATOA legal funds for Cable Modem. Motion carried unanimously.

Under public comment, Mr. Smashey complained of lack of competition of cable service in the City of Indianapolis and programming.

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