October 21^st, 2002

Cable Franchise Board

MEMBERS PRESENT

Stuart Rhodes, Chair
Pete Blum, Member
Daniel Lynch, Member
Charlie Hiltunen, Member
Dollyne Pettingil, Sherman, Member

  OTHERS PRESENT

Stuart Rhodes, Chairman, brought the meeting to order.  Mr. Rhodes introduced the new Cable Franchise Board Member, Ms. Dollyne Pettingil-Sherman, appointed by the City County Council.

 The first item on the agenda was the Cable Communication Agency report.  Mr. Maultra stated Bob Elrod, Time Warner representatives and the Cable Communications Agency appeared before the Rules & Policy Committee of the City-County Council relative to the Time Warner/Advance Newhouse FCC transfer of ownership.  The Committee unanimously voted to recommend approval of the transfer on to the City County Council for further action.

 Mr. Maultra stated Comcast had in the past, expressed their concerns to the Cable Agency with regard to a company called First Mile Technology facilitating certain Estridge communities for multichannel video services in the public right of way without a cable TV franchise agreement.  The Cable Agency has reviewed the Platt map provided for these communities, which indicates the streets are public versus the private street use representation by First Mile Technologies.  The Agency has forwarded its findings as well as a legal case that has been reviewed that First Mile Technologies is citing on to Bob Elrod and Bob Borgmann.  The plat maps have also been forwarded onto the appropriate individuals in public works for their review of public versus private streets and easements.

 Cable Board member Pete Blum and the Agency continues to work with the Educational Television Cooperative as they develop their five-year plan.

 The Indiana Cable and Telecommunications Association was kind enough to extend an invitation to the Agency to attend a half day seminar they sponsored in Bloomington on high definition television.  Mr. Maultra stated he found the seminar to be helpful and informative in relation to developing technology and how cable TV will play a part in HDVT, as well as the customer service implications to the continued roll out of HDTV.

 The City was well represented at the annual conference of the National Association Telecommunication Officers and Advisors (NATOA) last month in Chicago.  This concluded Mr. Maultra’s four years, two-term stint on the NATOA Board of Directors.  Stating going forward he will be serving on the NATOA Policy and Conference Committee.  He also has been asked to continue to chair NATOA’s Publications, normally reserved for a Board member, to maintain this year’s continuity with next year.

 The Agency continues to assist Lewis & Associates in their franchise fee audit review of Comcast and Time Warner.

 Time Warner has submitted FCC Forms 1240 (limited basic service tier) 1205 (associated equipment and labor) and 1235 (network upgrades) with the Cable Agency.  Time Warner normally takes their increases with relation to these documents effective 12/1.  Last year the Agency employed Action Audits who decreased their price, this year, with their reviews of the cable operators.  The Agency currently has about $4,800 in this year’s budget and Mr. Maultra stated his hope is to encumber the rest of that money to pay for a majority of this review of Time Warner.

 The Cable Agency has been investigating a complaint and request by Time Warner Cable with regard to service requirements at the Weyerbacher Terrace Apartment complex.

 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 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 September.  There were 50 hours and 1 minute of new live and tape delayed meeting coverage.  Special Events production totaled 14 hours and 5 minutes.  In Kind services were 3 hours and 10 minutes.

 There were 4 series programs for a total of 2 hours.

 Total in September for all categories was 69 hours, 16 minutes.

 The next item on the agenda was the Cable Operator’s Management Report.  Mr. Aldridge stated Time Warner has met all requirements of report of customer contact.

 Mr. Aldridge stated Time Warner ran in-kind promotional spots for Speaking of Women’s Health, Indy Parks (two spots) Circle City Classic, Indianapolis Opera, Dance Kaleidoscope, Ballet Int’l American Cabaret Theatre, Fiesta 2002 and the National Kidney Foundation of Indiana The value of these in-kind spots was $57, 750.00

 Community Affairs included reports such as:  Time Warner was one of the sponsors of the visit to Indianapolis by former New York Mayor Rudy Giuliani for the Behavior Corp’s Forum Lecture Series.  Funds from these events providing counseling and medical assistance for members of the Indianapolis community.

 In conjunction with the ICTA, sponsored a table at the Indiana Democratic Party political fundraiser.  This was the retirement roast of Speaker of the House, Rep. John Gregg.

 This month, the 19^th Coca Cola Circle City Classic event kicked off with an appreciation reception for local event sponsors.  The Indianapolis division of Time Warner Cable is again one of the major sponsors.  This is the 15^th year that Time Warner Cable has provided media and financial support for this unique Black College Football fundraiser.  The event has raised funds to be able to provide over $700,00 in educational scholarships.

 Time Warner supported the National Kidney Foundation of Indiana’s “Final Frontier” gala as the cable media sponsor.  The division hosted a corporate table at the event where the special guest for the event was Indianapolis native, Anthony Montgomery, a lead character on the nationally syndicated TV program, “Enterprise”.

 In conjunction with the ICTA, sponsored a foursome at the City Council Golf Fundraiser at Smock golf Course.

 Time Warner was a major sponsor of WFYI’s, “Speaking of Women’s Health” event at the Convention Center.  The division sponsored an information booth and sponsored one

of an afternoon breakout session.  This is the 2^nd year in as many that TWC has been a sponsor.

 With September/October being Hispanic Heritage Month, Time Warner was again one of the media sponsors for “Fiesta 2002”.  The celebration is a daylong event at the American Legion Mall in downtown Indianapolis.  Over 10,000 people from throughout Indiana attend the celebration.

 The Public Relations manager continues to serve the community through membership on the Indianapolis Public Schools Education Foundation (IPSEF) board, a member of the executive board of 100 Black Men of Indianapolis, a member of the Indianapolis Press Club, and the president of Hemophilia of Indiana, Inc.   

 The next item on the agenda was the Comcast management Report.  Mr. Apple stated there was a gain of customers in the month of September.  Incoming calls were 58,281 received and 57,050 handled; 90.01% were answered in 30 seconds or less.  Busy rate was 2.6%.  There were 91 service interruptions for the month.  Service call report was 99.5% of total service calls addressed within next business day.  Comcast completed 100% of its installations within 7 days or by customer request.  There were 63 written complaints in the month of September.

 Construction was completed in 7 new subdivisions, 1 condominium complex.

 Comcast aired 175 hours of local community interest programming in September.

 Comcast supported several community events including:

1.      Comcast and The Golf Channel partnered on September 3 to present “Drive, Chip and Putt,” a golf skills competition for children aged 7-12.  The event was held at The Fort Golf Course in Lawrence.

 2.      Comcast sponsored the Indianapolis Air Show, September 6-8 at Mt. Comfort Airport.  Proceeds from the show benefit Riley Hospital for Children. 

3.      Comcast was a media sponsor of the Women’s Conference held September 13 at the Indianapolis Convention Center.  The featured speaker was Dr. Phil McGraw. 

4.      For the sixth consecutive year, Comcast was the presenting sponsor of Senator Dick Lugar’s annual Run/Walk at Butler University.  This year, Comcast partnered with Court TV to provide digital fingerprinting services for children attending the September 14 event. 

5.      Comcast hosted a children’s talent search for Game Show Network on   September 20.  Children aged 7-12 were invited to audition at Primo’s  Banquet Hall in Plainfield to be an “Answer Kid” on the program WinTuition, which debuts on Game Show Network this fall.

6.      Comcast helped promote BET’s Gospel Explosion concert, held September 28 at King’s Island in Ohio.    

    The next item on the agenda was the TOTALink of Indiana Presentation.  Mr. Loftis reported TOTALink submits this Monthly Report to keep the Board and public aware of TOTALink’s continued efforts and interest in the Indianapolis market.  Due to the continued softness in the capital markets.  TOTALink has not started construction on its new Indianapolis network.  TOTALink continues to be very encouraged by the success of SIGECOM, our sister broadband service provider company in Southern Indiana and by the continued positive support that is being provided to Utilicom Networks, our parent company by its primary owners Vectren Corporation and Blackstone Capital Partners.

 TOTALink’s sister company, SIGECOM, which serves the greater Evansville area continues to perform extremely well and is a self sustaining entity that requires no additional funding.  SIGECOM provides service to over 27,000 residential and business customers.  Homeowners in Evansville have true choice in their selection of cable, local and long distance telephone service and high speed Internet service.  The competitive environment in Evansville has stimulated attractive pricing of services to homeowners, and a high level of customer service and continuous product innovation.

 The net result of a new broadband telecommunications network in Evansville is that the community has one of the best telecommunications infrastructures in the country and its home and business owners receive a superior value proposition as they purchase their telecommunications services.

 In the future, as TOTALink builds out its Indianapolis network, home and business owners will enjoy the same benefits that a new state of the art network and competition brings to the community.

 Mr. Loftis stated TOTALink appreciate the patience of the Cable Franchise Board and the Indianapolis-Marion County community in general as we await improvements in the capital markets improve to begin construction of the network, and further we appreciate the Cable Franchise Board, consideration of our request for a 12-month extension on start of construction, and look forward to its approval.

 The next item on the agenda was the ETC report.  Mr. Harris along with Amy Conrad-Warner and David Donaldson presented ETC 5-Year Plan.  The Executive Summary, Five-Year Business Plan, read as follows:

 Indianapolis has become a great midwestern city complete with all of the necessary amenities, which contribute toward the economic development of Central Indiana.  Indianapolis is the region’s technology hub, economic and political center of the state, and budding arts and culture community that is rich with the diversity of our citizenry.  Stating a great city deserves an exceptional telecommunications structure and opportunities for young people to play a role in the industry.  The time has come for ETC to move to the next level beyond a volunteer network of like-minded educations to an organization of extraordinary talent and technical savvy.

 The mission of the organizations to provide quality educational programming to the citizens of Indianapolis and provide a vehicle through which young people gain an appreciation for the technical aspects of producing programming and managing a cable television channel.  The goals for the next five years include:

• Improve the quality and variety of programming.
• Improve the technical quality of the productions and the operation of the educational channels.
• Increase communication and marketing to promote and increase awareness of programming and youth development opportunities.
• Strengthen the management and fiscal stability of the Educational Television Cooperative.

  In order to accomplish these goals, the Educational Television Cooperative intends to deploy the following strategies:

• Create and produce innovative programs, which extend beyond the traditional K-12 or higher educational programming.
• Attract and hire staff to manage the operations of the channel, paid interns, volunteers, and sponsors and partners.
• Diversity of the funding stream to include corporate sponsors and community foundations and underwrite the production of quality innovative programs.
• Implement an equipment acquisition; replacement and maintenance plan to insure the quality operation of the educational channels.

  In order to deploy the strategies and meet the goal of the organization, ETC will seek additional funds to increase the operations budget from $50,000 annually to $100,000.   In addition to the increase in the operating budget of the organization, additional funds will be requested to purchase capital equipment ($100,000 in 2003).

 Mr. Rhodes, thanked ETC members for there comprehensive report stating he believe there report is a working documents.  Mr. Rhodes stated he would like to see the City and ETC work together and accomplish this goal. 

 Under new Business, Mr. Maultra stated Time Warner has recently submitted their FCC rate filing to the Cable Agency that extends beginning January 1, 2003 to December 31, 2003.  The forms submitted include FCC Form 1240 (limited basic service tier), 1205 (associated equipment and labor) and 1235 (upgrade related costs).

 The Board recently approved Action Audits perform the review of these FCC forms for Comcast minus the 1235.  Action Audits also performed the reviews of both operators last year and the Agency was very pleased with their detailed work and recommendations.

 Mr. Maultra stated the cost for the review would be $6,000, a discount over last year.

 Mr. Maultra asked the board’s kind consideration to have Action Audits to perform this proposed rate review on Time Warner.

 Motion was made by Mr. Hiltunen, seconded by Mr. Blum to have Action Audit perform proposed rate review on Time Warner at $6,000.  Motion carried unanimously.     

 The next item on the agenda was the Cable Theft/Vandalism of Time Warner facilities.  Mr. Maultra and Mr. Aldridge, from Time Warner, asked for help with an issue of cable theft.  Stating Time Warner has filed a request/concern to the Cable Agency regarding their universal service provision of the franchise agreement.  According to Time Warner representations they have had numerous cases of their cable equipment being vandalized and some times for the purposes of cable theft, beyond the cable theft they are already experiencing.

 Stating this is taking place at the Weyerbacher Terrace at 21^st and Illinois.

 Mr. Maultra stated the franchise agreement with the universal service requirement, which is based on density, has a subsection “c” that states Operator shall be under no obligation to provide cable services to any resident of a multiple dwelling unit or a single family home who has been convicted of theft of service, or where Operator has documented vandalism or other damage to the operator’s system.

 Mr. Maultra stated he has checked with counsel and they support his reading of the agreement that Time Warner is not compelled to provide service to this MDU based on the circumstances presented, should documentation be evident.  Also stating there is not a required vote needed by the board regarding this issue, Mr. Maultra wanted to amplify the seriousness in which Indianapolis looks at cable theft and vandalism and send a message to those watching at home: stating a few bad apples can potentially ruin service for those who are law abiding.

 Mr. Aldridge stated Time Warner has a 296-unit apartment complex (Weyerbacher Terrace at 21^st and Illinois) that was deactivated a few years ago.  Stating about a dozen units were grand fathered as customers when Time Warner deactivated the complex.  Currently the illegal rate in the unit is totally outrageous, with damaged lock boxes, cut drops and damaged and missing ceilings tiles.

 Mr. Aldridge also stated the Apartment manager says that the City’s Health Department is looking to serve a fine on the apartment owner because folks are breaking ceiling tiles to illegally connect cable are exposing lead based paint to the residence.  To upgrade the facility it will cost Time Warner some where between $25,000 and $35,000 dollars.  Stating the owner is even suggesting that Time Warner disconnect the building totally.

 Mr. Rhodes suggested the City prepare a resolution that would endorse Time Warner efforts regarding Cable theft.

 The next item on the agenda was Channel 16 Bids.   Mr. Montgomery stated these two bids are a conclusion of a purchase process that began earlier this year, with the request of PEG grant funding approved by the Cable Franchise Board and City County Council.  Mr. Montgomery stated ITB #3870 was for Cameras and Remote Control Mounts.  Shipping is included in the unit cost of each item.  Mr. Montgomery stated Lines 1-5, 7-15 (entire bid) to Duncan Video, Vendor #351577673 for  $163,410.00. 

 The second bid is for ITB#3863 for Master Control Equipment & Racks for $64,766.69 stating shipping costs is included in the unit cost of each item.  Mr. Montgomery suggested lines 14,15, 18-26 to be rewarded to Duncan Video, Lines 1-12 to Videotape Products and lines 13& 17 to MCSI.

 Motion was made by Mr. Hiltunen, seconded by Ms. Dollyne Pettingil-Sherman to reward the bid #3863 (Master Control Equipment & Racks), lines 1-12, 16 to Videotape Products for $27,085.69, Lines 13-17 to MSCI for $4,806.00 and lines 14,15, 18-26 to Duncan Video for $34,543.  Vote was 3, 0 and 1 abstention. Motion carried.

 Motion was made by Mr. Hiltunen seconded by Ms. Dollyne Pettingil-Sherman to reward the bid#3870 (Cameras and Remote Control Mounts), lines 1-5, 7-15(entire bid) to Duncan Video.  Vote was 3, 0 and 1 abstention.  Motion carried.

  Under public comment, Comcast customer complained how Comcast and the City respond to Comcast cable subscriber’s complaints.  Also, James Smashey commented on Cable Theft/Vandalism and PEG Channels.

 There were no further business to come before the board; Mr. Rhodes adjourned the meeting.

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Mr. Stuart Rhodes, Chairman

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Mr. Peter Blum, Member

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Mr. Charlie Hiltunen, Member

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Mr. Daniel Lynch, Member

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Ms. Dollyne Pettingil-Sherman, Member

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Ms. Janise Winston, Recording Secretary