Loading...
HomeMy WebLinkAbout1997-1998 Cable Commission Minutes & ReportsTompkins County Intermunicipal Cable Commission January 14, 1998 7:00 P.M. County Board Room Present: Harvey Gitlin (Town of Caroline) Mike Allmendinger (Town of Dryden) Ben Curtis (Town of Ulysses) Steve Merwin (Village of Freeville) Larry Fresinski (Village of Lansing) Rick Gray, (City of Ithaca) Guests: Judy Boggess, (Electronic Future Committee, Coordinator) Alan Cohen, (City of Ithaca, Mayor) Bill Demo, (Division of Instruction & Learning, TC3) Elena Flash (Cayuga Heights) John Levine (Village of Trumansburg) Phil Smith, (Time Warner Cable, General Manager) 1 Chairman Curtis called the meeting to order at 7:00 P.M. The minutes of the 10/8/97 meeting 2 were approved as submitted. There are no minutes for the December meeting as it was canceled 3 due to the stor n. Gray suggested changing the date of future meetings. The meetings will now 4 be held on the third Tuesday of each month with the next meeting set for Feb. 17 at 7:00 P.M. at 5 the old jail conference room (Note: Next meeting rescheduled to March 4 at 7:OOPM in the 6 Jail Conference Room) 7 8 Privilege of the Floor 9 10 None 11 12 Guest Speaker: Judv Boggess 13 14 Curtis introduced Judy Boggess, Electronic Future Committee Coordinator. Her first handout 15 was a summary of the ideas presented by the two firms (Rice, Williams and Associates and 16 Speagle & McDermott) interested in being hired as the consultant for the City of Ithaca franchise 17 renewal. A meeting was held between the City of Ithaca and each group for approximately 2-3 18 hours to get a better sense of what they could offer the community as well as to get a more 19 detailed explanation of their cost estimates. Each was also asked to provide references of 20 communities they had worked with within the last 2 years and Gray, Gitlin, Curtis and others then 21 spent time following up with calls to them. Based upon all information and the prices estimates, 22 Rice, Williams and Associates was chosen. They have been recommended to the City although 23 no formal action has been taken by City Council. 24 25 Boggess also provided the Commission with another handout which was a proposal for this 26 Commission to join the City of Ithaca in the negotiating process. Mayor Cohen arrived and gave 27 a brief overview of the history of hiring a consultant to work with them in the negotiating process. Tompkins County Intermunicipal Cable Commission Minutes of January 14, 1998 Page 2 of 6 1 Having gone through the negotiating process both with and without a consultant, the City felt it 2 was much better to have a consultant on board to provide expertise and guidance. The City has 3 hired Rice in the past and feels confident with them. Cohen has spoken with Ivlarcham, Lane and 4 Curtis regarding working together in sharing a consultant. The City would like to propose this 5 Commission join with them to provide a united front as there is strength in numbers. He feels the 6 draft franchise agreement would provide a good foundation and also allow for each municipality 7 to tailor it as needed. Cohen stated the City would provide the lion's share of the costs involved 8 with the consultant. 9 10 Another handout was a letter from Thys VanCourt which summarized the position of the City. 11 Curtis also provided the Commission with a handout from Lane stating his support provided that 12 there is sufficient assurance that issues important to more rural municipalities will receive equal 13 weight in the negotiations. Curtis stated the Executive Committee has met and discussed the 14 proposal. They also believe in strength in numbers and combining to provide stronger leverage. 15 They are in support of the concept but they would like to see assurances from the City that the 16 concerns of other municipalities, for such items as rates and line extensions, will carry equal 17 importance. Without that assurance, they do not support the joint effort. 18 19 Cohen stated the City Council's desire is to be open minded and work with the other 20 municipalities. This will allow for more efficiencies in government. Cohen reiterated that his 21 personal philosophy is to reach out to others. He has demonstrated this since taking office in both 22 sewer and water issues. He would also like to see this in cable issues. He feels all rate issues will 23 be a concern to every municipality and also feels line extensions are important. Cohen's vision for 24 economic development is to go beyond the borders of the City. He sees line extensions as critical 25 to this concept and he would like to see stronger relations between the City and the neighboring 26 municipalities. 27 28 Curtis specifically asked Cohen is there would be some assurance that the outlying municipalities 29 would be on the negotiating committee. Cohen responded yes. Gray stated he hoped Lane was 30 also interested in INET expansion to connect all municipalities. Curtis stated there is a strong 31 interest in seeing that the backbone of the system go out to all the population centers of the rural 32 areas. Levine was interested in the logistics of the meeting would be between the consultants and 33 Time Warner and who would come up with the membership as well as the priority items. Cohen 34 responded that his recommended idea would be to break up the negotiating team into various 35 subgroups to focus on various priorities. He would like to see one core group always at the 36 negotiating table with other subgroups called in as necessary. He would also like to the core 37 group to represent the various municipalities who choose to participate in the joint venture. 38 Boggess stated the importance of having the strongest case presenters at the core to provide the 39 best resources. She also felt it would be important for the consultants to orchestrate and provide 40 guidance. The consultants would also be responsible for a needs assessment which must be done 41 county wide to all the municipalities that join. Consumers should also be included in this process. Tompkins County Intermunicipal Cable Commission Minutes of January 14, 1998 Page 3 of 6 1 2 Gitlin asked for a time frame for line extensions. Smith stated line extensions are being done in 3 municipalities where franchises exist. Although the state guidelines provide for cable if there are 4 35 homes per mile, Time Warner is using 20 homes per mile as their guideline. Curtis stated there 5 is a new subdivision with the Village of Lansing that is not being hooked up to cable. Smith 6 stated money can not be spent where only a few homes exist and recommended Prime Star to 7 those in such situations. 8 9 Cohen stated a decision must be made as to whether municipalities would like to join on to the 10 joint venture. Then, issues and priorities must be determined and a plan made to proceed with 11 negotiations. 12 13 Fresinski asked Smith if they had worked with groups of municipalities for negotiations and how 14 did it work from their prospective. Smith stated he personally had never done this. 15 16 Regarding the consultants, Gitlin was curious how the price for their services would be 17 determined if it were the City alone or a joint venture. Cohen stated it would occur in two steps. 18 First, the City would hire the consultant and approve a price range. The scope of services would 19 come later when it was determined who would be participating. He felt the scope of services and 20 costs might be larger if others join. Boggess stated the consultants said there would be no 21 increase in total cost if other municipalities join although the needs assessment throughout the 22 county would increase that budget item. 23 24 Members stated that the idea of joining with the City would need to be placed on the agendas for 25 the various municipalities. Due to their meeting schedules, it might be a month or more before 26 any decisions are made. Fresinski stated it is important to hear from each respective board. 27 Cohen stated this is a time sensitive issue as the rebuild will be proceeding soon. Gray 28 recommended that those not in attendance be contacted directly to get their responses to this 29 proposal. Cohen recommended that the municipalities interested in joining pay 1.5 times the 30 current annual franchise fee. Merwin stated this might be prohibitive to his municipality as that 31 could be 20% of his budget. He feels his small municipality might have little to gain although he 32 feels the county wide approach is the way to go. Others stated that since they had no franchise, 33 they would be paying $0 under the proposed formula. Fresinski stated the 1.5 times across the 34 board might not work. Gray suggested it might be more equitable to base the cost on the number 35 of subscribers rather than a percentage of the franchise fee. Levine recommended that the amount 36 owed by each municipality might be set at roughly $1 per subscriber or whatever would be 37 equivalent in gross proceeds to the formula proposed by the City. Fresinski also recommended a 38 minimum and maximum amount be set. Curtis stated that franchise fees collected by his 39 municipality have in the past gone into the general fund to benefit all taxpayers. This would be an 40 opportunity to use the fees collected to directly benefit those who have been paying it - the cable 41 subscribers. Tompkins County Intermunicipal Cable Commission Minutes of January 14, 1998 Page 4 of 6 1 2 Curtis stated that this Commission has had meetings with Time Warner and there is now a better 3 understanding between the two on various issues. Curtis feels Time Warner will continue to 4 improve some services on its own, but others will need to be negotiated. He again noted that 5 formal negotiations would require a needs assessment that included each municipality involved. 6 He felt that City needs a consultant to work with their special needs and the Commission would 7 need the assurance that this consultant would also work with the other municipalities. 8 9 Curtis stated he would prefer to approach his board with a recommendation from the Commission 10 in favor of the joint approach subject to the assurances in the Lane memo. Curtis moved that the 11 Commission supports the City's proposal in concept subject to the provisions stated in Lane's 12 letter. Seconded by Allmendinger. There was some discussion of the exact wording of the 13 resolution; it was agreed that Curtis would draft a more formal resolution restating the concepts 14 subject to the E-mail review of those present. A vote was taken and the resolution passed 15 unanimously. The final text appears is as follows: 16 17 18 Resolution for Joint Contract for Cable Consultant Services 19 20 21 Whereas The Tompkins County Intermunicipal Cable Commission was established to maximize 22 the advantages of intermunicipal cooperation in the regulation of cable television by both avoiding 23 duplication of effort and by increasing leverage through strength in numbers; and 24 25 Whereas the City of Ithaca is a member of the Commission; and 26 27 Whereas the City of Ithaca with the largest subscriber base in the Tompkins County cable system 28 has significant interests in cable related issues over and beyond those of the other municipalities in 29 the County; and 30 31 Whereas the City has made the judgement that it will require the services of a professional 32 consultant in negotiating the renewal of its franchise agreement with Time Warner and has 33 completed the selection process for such a consultant; and 34 35 Whereas the City has reaffirmed its commitment to maximizing the advantages of intermunicipal 36 cooperation and has requested that the other municipalities in the Commission join the City in its 37 contract with the selected consultant; and 38 39 Whereas the City, in consideration for its special interest in certain cable related issues, has 40 proposed to pay a disproportionately greater share of the cost of the consultant's services such 41 that the cost to other participating municipalities will not exceed 1 'A times the total annual Tompkins County Intermunicipal Cable Commission Minutes of January 14, 1998 Page 5 of 6 1 franchise fees paid to the participating municipalities by Time Warner under their current franchise 2 agreements; and 3 4 Whereas the City has further proposed that the other participating municipalities will be,full 5 partners in the negotiation process beginning with the formulation of a final scope of work for the 6 consultant, 7 8 Now, therefore, be it resolved that the Tompkins County Intermunicipal Cable Commission 9 supports, in concept, entering into the joint contract for consultant services as proposed by the 10 City of Ithaca and recommends to its member municipalities that they individually approve joining 11 the contract, 12 13 Provided that the concerns of the other municipalities (e.g. rates and line extensions) will carry 14 equal importance in negotiations; and 15 16 Provided that the other municipalities may vary the formula for determining the share of the cost 17 of the consultant individual municipalities in order that each participating municipality will pay 18 some amount and participation will be affordable for all member municipalities, but such that the 19 share to be paid by the City will not be greater than as determined using the formula proposed by 20 the City. 21 22 23 Electronic Future Committee Update: 24 25 Boggess stated the Committee is engaging in a series of presentations from those companies 26 which are offering or might potentially offer telecommunication services within the County. They 27 have spoken with and will continue to hear from such groups as CAI Wireless, Time Warner, 28 Frontier Cellular, Bell Atlantic, and ACC Telecom. Their meetings are held at 3:00 in the 29 Sherman Peer Room at the Library on the first and fourth Thursdays and the public is invited to 30 attend as well as hear the presentations. Boggess is particularly interested in the potential for 31 using fiber optics for distance learning and development for the local labor force. Boggess also 32 stated that Apple currently has a proposal which could provide the research and development to 33 design an intranet which would connect all the schools within the County. 34 35 Tompkins County Municipal Officials Association/Local Ordinances 36 37 Curtis stated Don Barber was unable to attend tonight. Curtis stated this group is working on a 38 joint effort to deal with such items as cell tower ordinances, telecommunication ordinances and 39 ROW ordinances. Curtis will report back to their group on this Commission's action for support 40 of a joint proposal with the City. 41 Tompkins County Intermunicipal Cable Commission Minutes of January 14, 1998 Page 6 of 6 1 Other Business 2 3 Levine stated it is important to find more efficient ways to accomplish the results with Time 4 Warner. He feels there should be a differentiation between the institutional network and the 5 consumer cable plan. Pieces of the INET must be identified quickly before the rebuild begins. 6 Levine stated Time Warner needs to know what buildings each municipality feels should be 7 connected, i.e. schools, libraries, fire stations, public works buildings, governmental offices, etc. 8 Boggess stated that a list of public buildings has already been identified and provided to Time 9 Warner. Demo spoke on the teleconferencing currently being done between schools in 10 Trumansburg, Newfield, Marathon and TC3 using phone lines. Smith stated it could also be done 11 with other municipalities as the plans sit on his desk awaiting signed franchise renewals from other 12 municipalities. 13 14 Member Reports: 15 16 None 17 18 Adjournment: 19 20 The meeting was adjourned at 9:30PM. 21 22 Carol J. Willard To: Inter -Municipal Cable Commission and others From: Pat Vaughan, Chair, PEG Access Task Force Subject: Very Preliminary Report Date: November 13, 1998 Members of the PEG Access Task force have been working for two months to put together their preliminary reports. Before splitting into three separate groups (Public, Education and Government), Task Force members identified various stakeholders for each of these areas, and have continued to add to this stakeholder list as they became aware of others with interest in these issues. The P, E and G subgroups have interviewed many of these stakeholders, and these preliminary reports are a compilation of these interviews. The reports attached here are a work in progress; more meetings of the full Task Force are scheduled, and these meetings, plus additional editing and rewriting, will produce a document which is more unified in format and content. It is important to stress that much of what is included here expresses the opinions of individuals or of small groups of Task Force members, and that these opinions may be refined after closer scrutiny by the complete Task Force. Input from the public at hearings in December will further modify the conclusions presented here. The work of the PEG Access Task Force is interwoven with that of the I -Net Task Force. Hardware and infrastructure issues (some related to I -Net) continued to bubble to the surface throughout the PEG process, and resolution of these questions will be an important part of the PEG group's final report. There is a general consensus that many current hardware and infrastructure issues result from inadequate handling of this area in the current franchise agreement. Although members of the PEG Access Task Force are aware of the dangers of too much contract specificity in a rapidly changing technical environment, they have also learned that vague contract language can lead to serious problems in interpretation and implementation . The PEG Task Force is aware of the controversial nature of some access programming, and is earnestly seeking ways to preserve First Amendment freedoms while protecting the rights of the individuals who choose not to be exposed to material they deem offensive. The Task Force recognizes that the solution for this problem generally falls outside the scope of the franchise contract and is not part of the negotiated relationship between the Franchisee and the various municipalities. Members of the PEG Task Force welcome comments from those who read this preliminary report, and wish to thank all who gave of their time to assist in its preparation. Summary: Pubic Access Task Force Report Introduction Federal legislation has granted municipalities the right to require access to cable television systems within their jurisdiction for non-profit uses by their Public, Educational, and Governmental sectors; for commercial uses by leasers; and for interinstitutional data transfer and/or video/audio transfer by governments, educational institutions, and non-profit agencies. Traditionally cable operators have been required to underwrite the cost of these "public goods" on two grounds: 1) Cable operators and their subscribers are benefiting from the use of the public right-of-way for private commercial use and delivery of services respectively, and 2) Such an arrangement eliminates the need for a community to duplicate effort and cost unnecessarily in order to set up its own needed cable infrastructure. In Tompkins County the current P(ublic), E(ducational), G(overnmental) Access system and the current Institutional Network (I -Net) form that nexus for an anticipated fully functional community -wide local telecommunications infrastructure. This franchise presents a unique opportunity for the community to make substantial gains on this infrastructure and thereby to improve the situation for all segments of the community. The Public Access Task Force is recommending a considerable expansion over Time \Varner's current public access project, which only provides the bare minimum facility and staff to support the current franchise agreement responsibilities with some minor lapses and some more substantial disappointments. TWC has not seemed able to provide a flexible, responsive program that anticipates the needs of the community it serves, but it's not clear that it was ever expected to do so. It is quite clear that it was never mandated to provide the specific means to do so. There are, in a community like this, interesting possibilities. Right now, especially, there are possibilities coincident with recent developments in the City of Ithaca, such as the library move, the State Theatre restoration, the CSMA expansion, and Ithaca Hours growth. There are also possibilities in areas of neglected potential such as Chamber of Commerce participation, electoral reform, adult education, and the Youth Bureau building. There is Time Warner's rollout of high speed Internet service and the upcoming switchover to high definition television (HDTV). All of these point to the desirability of broadening access' sights, but the current facility has had to and will have to constrain any expansion of scope in order to continue to handle its responsibilities. A forward looking franchise agreement will certainly swamp the current facility and its resources: A backward looking franchise agreement, however, has no place in Ithaca. There are no "good old days" for access, but there may be a brighter future. Public Access is a free speech medium. It is mandated federally that cable operators are neither responsible for content nor may they censor or exercise other editorial control over access content. Municipalities, according to NYS regulations and federal law, are likewise restricted. An access producer is the sole responsible party for the programming he/she cablecasts. Much of Tompkins County's access programming is very popular with cable subscribers. In a 1994 survey, 70% of Ithaca subscribers queried reported that they watched access once a week or more and over 80% were either very satisfied or quite satisfied with the job access was doing. However, since it is an integral portion of the public access legal mandate to provide an outlet for voices which are normally shut out of main -stream media, and since these voices are sometimes not popular, public access sometimes has many vocal critics. The free -speech mandate has, in Tompkins County and other communities, led to much controversy on occasions when individual public access producers have cablecast programming which has offended some segment of the community. It is desirable to accommodate all segments of the community --those who are offended and want to shut out certain types of programming for themselves or for their children, those who want to speak without being censored, those who want to produce "safe" community programming and don't want to be associated with uncensored TV; and those who want to see and hear the controversial as well as the "safe". The Task Force recommends that this year's franchise proposal attempt to satisfy all of these people without abrogating the rights or desires of any of these groups. Specific Recommendations to ensure public access serves the entire community and the franchising bodies: Solving the problem of controversial content: 1) By making the cable system more accessible to more segments of the community --and thus reduce programming perceived as offensive to a small percentage of the public access offerings: Measures to accomplish this include: a) Main production facilities to be open, in addition to current hours, at hours when not -for - profits have staff to produce shows. b) Additional small automated studios to be provided at other locations, especially in outlying areas of the county but also in City neighborhoods, to make access available to people and non-profit organizations in their own neighborhoods and to give a voice to individuals and organizations who are not trained in the technicalities of producing shows requiring trained crew. c) New more versatile studio facilities to be provided that are conducive to the production of arts, music, drama, and other genres of access shows besides the talk show. The current long narrow studio lacks the flexibility needed for other types of productions. d) Room to be provided for storage of props, sets, equipment temporarily not in use, and other items accessory to the production of more television variety. e) Provision to be made for the transition to High Definition Television (HDTV) so that access can start to produce high quality entertainment venues when it becomes available on other channels. f) New I -Net sites to be added to the system in the City and in outlying communities, so that live TV can be sent out from public meeting locations all over the county. g) Public access staff to be required to work regularly with community centers and schools to initiate regular programming from these sites. h) Former policy to be reinstituted to allow showing of access programs from producers and providers living in other areas in the state. Three years ago TW chose to discontinue showing these programs over the protest of the ICCC. This eliminated much variety that was previously available on access to local viewers. i) Caller -ID to be required on all on -air phones to enable access producers to screen the calls to their shows effectively. 2) By instituting some county-wide community controlled channels--to cablecast on such a channel a producer must agree to abide by standards determined by a county-wide community advisory board. These channels would exist in addition to the traditional free- speech channels. 3) By making channel-blocking easy and free -- Time Warner Cable will be required to provide, free-of-charge, on the request of any individual subscriber up-to-date timed or locked filters or future technology with the same function so that any channel or portion of channel can be blocked from the subscriber's home site. The franchise would also require monthly notice of this service on bills and cross-channel advertising. 4) By facilitating viewers' ability to make informed choices about shows they see by requiring TWC to cablecast up-to-date schedules with program descriptions and to put such schedules on the Internet. In addition, TWC would be required to make a good faith effort to get other local media outlets to cover scheduling information and to cooperate by getting the information to them in a timely and useable form. 5) By instituting some single-community controlled channels, which would be cablecast only to specific municipalities and available only to producers or providers living in that community- -At the option of the community, a community Cable Access Committee could set standards for these channels to which producers or providers would have to agree to have their programs cablecast on these channels. At the committee's discretion, these channels may be time- sectored between community controlled time and free-speech time. County-wide free speech channels would not be under the control of community access advisory boards with the following exception: If a producer is found to be guilty of cablecasting illegal content-- libel, slander, obscenity, copyright infringement--by a court of competent jurisdiction and appeals are complete, sanctions may be imposed on the producer for breaking rules against cablecasting illegal material. 6) By requiring that TWC cablecast appropriate electronic v-chip ratings if supplied by the producer/provider at the time of program submission when v-chips become available in the commercial television market. The task force is also recommending: 1) Public access to the Internet, including the appropriate modems to use TW's high speed Internet service, be required at the main studio(s) and many of the outlying public studio sites. 2) A public access FM radio station that originates from the main access studio(s) and selected community centers. 3) A Chamber-of-Commerce controlled leased access commercial channel be instituted via franchise negotiations. Such a channel would be a significant factor in making this community a desirable one in which to do business. Time Warner's monopoly and past failure to develop effective local outlets for local business information makes such a channel a necessary version of leased access. 4) Access viewing stations be required at the public locations around the county so that non- subscribers in the rural areas where housing is too sparse for cable service have access to our community infrastructure. 5) Equipment and software required to be available so that access programming can be digitized and streamed onto the internet for viewing by County residents in rural areas not served by Time Warner. 6) Both non-profit public access and commercial leased access pay -for -view be required to be available for use by local performing arts entities and for local not-for-profit telethons. 7) A non-negotiable requirement for a free sub -basic tier to bring the P.E.G. access channels and other public goods to all connected residences within the county and thus enable all to participate in the community infrastructure and thus enable the full potential of the I -Net and universal access. Friends of Access Investigation into the trade-offs between corporate and not-for-profit management scenarios has convinced members of the task force that access can't do without the advantages of both and can't put up with the disadvantages of either. For this reason the task force is recommending a continuation of Time Warner facility management, but is advancing the idea of creating a separate entity called "Friends of Access" to raise funds for and manage desirable access initiatives, particularly those which represent or seem to represent a conflict of interest for Time Warner. Friends of Access' role would include coordinating the participation of volunteers to make some projects viable. Details on these and other less sweeping recommendations are contained in the body of the report. Draft Educational Access Report Jeff Spence November 14, 1998 Attached, please find the letter I sent to the superintendents, principals, and curriculum coordinators for the secondary schools within the franchise area. So far, I've only gotten a response from Jim Overhizer at Groton who told me that his district budgeted 20K for him to outfit a studio and start exploring TV production at his school. He wants to meet and discuss possible PEG connections. He sounded excited about accessing PEG training and equipment with the goal of producing programming for Ed. Access TV. Two teacher in Trumansburg gave similar responses. Jim Perkins at Trumansburg HS and Eric Yettru at T'Burg Middle school are interested in developing a video strand to their Communication Systems curriculum. They have a couple of VHS cameras, a Videonics titlemaker, two VHS decks and an edit controller already. They are both interested in PEG training, getting advice for expanding and improving their programs, accessing the Ed. Access trainer recently hired by TWC, and eventually accessing portable studio equipment for live -to -tape shoots of events. Both were excited about the possibility of creating TV programming for Ed. Access in the news show format. They said they would call about training and arrange for a visitation day to come to IHS to see what we are doing in this area. I also know that DeWitt wants to make a proposal and follow through with programming so it can regain the equipment it lost this past summer. I know they did a live -to -tape shoot last week for Ed. Access of their talent show. Charlie Speed from George Junior Republic has also expressed interest and has scheduled a visit to IHS. He said they are definitely interested in pursuing a video production program there. I'm not certain if they are within the boundaries we are talking about or not, so I mention them. Dryden said they were working on their own deal with TWC and didn't want to be part of our proposal. I was also unable, after many phone calls, to make contact with Newfield. Dean Eckstrom, speaking for Lansing principals said that they "informed me that the District had made a distinct decision last year not to advance a video program within the school district. There appears to be no faculty interested in this area, and the district administration has made a conscious decision not to get into this type of program at this time." At the high school, our program is growing steadily. We have trained approximately 200 children and adults in video production over the past six years through our class, professional development workshops and summer media camps. This year, we have 27 students from a diverse population committing ninety minutes a day to study English in tandem with video production. They just delivered their 71st edition of Lake Street News to PEGASYS this past Friday. As their skills and reputation grow, there are more and more requests for their services in the educational community. Already this year, the class has performed two live -to -tape shoots of PTA educational programs to be C4 cablecast for those unable to attend. We are creating in-house video to train staff in "affirming diversity" and are exploring the community use of video in Conflict Resolution and Multicultural Education. Additionally, the ICSD Board of Ed. want to pursue the cablecast of its monthly meetings. Although the district has accepted responsibility for contributing financial support to this program, the funding is unlikely to keep up with the increased demands for service. While we are happy with the quality of the Hi8 output, both TWC and we at IHS are unhappy with its constant need for repair. We feel that the industry is going digital and so should we. Sony doesn't even make a Hi8 editor anymore. Digital is the way to go because the output is higher quality, its fewer moving parts means fewer costly repairs, and the possibility of eventually streaming digitized video onto the web and cablecasting programs in that way is exciting both because of the broader audience and because people could air their programs from remote locations. If this proves possible, it would be a quicker, easier solution than placing head -ends at all the locations that have been suggested. Since the 20K that represents approximately the third of the 2% money that has occasionally been spent on Ed. Access is about what it will take to maintain and upgrade after depreciation the equipment it has already committed to IHS, ACS, and Boynton, I suggest we ask for an increase in capital funding to bring more district and programming into the Ed. Access arena and to upgrade to digital those programs which have proven themselves consistent producers of Ed. Access TV programming. We would also like to see TWC keep ownership of the loaned equipment, both so it can be redistributed if it is insufficiently utilized, and so it will be repaired when it needs. We feel that TWC has a better track record of maintaining equipment than the public schools. To maintain the status quo in Ed. Access for our public schools and gradually phase in digital replacement of analog equipment, will require about 20-30K per year. It's hard for me to predict what the Ithaca community will want in the future. If they start asking for live coverage of events in Kulp Auditorium or cablecast of sports events in our gym or outside fields, then there would be some additional cabling costs. To involve Trumansburg, Groton, and other schools that might follow their examples, PEGASYS will have to increase the amount of leaner equipment available as well as committing more time from its Ed. trainer to teach and initially supervise production. To expand video production to outlying schools will cost about 7.5K per school for analog or about 20k per school for digital until costs come down. I predict that as video technology becomes more integrated into our school's curriculum (especially through media literacy training), there will be a corresponding increased demand for access that TWC and ICSD will have to address. With increased production will also come increased competition for cablecasting time. I second Gossa's suggestion that there be an additional channel for Ed. Access, or a floater channel to accomodate conflicts. I know 2 that TWC plans to give us a couple of the retired Amiga character generators with the suggestion that we create a message board to be played on channel 54 when it has not programming being played. Tom Doheny suggested a one point that IHS could have its own channel some day. If other schools get involved, and IC increases its programming, I imagine that ch.. 54 will be insufficient to serve all of us. As far as access origination points, we would like to be able to go live from the new library at IHS, where we have already performed to live -to -tape shoots since October. Kulp Auditorium and the gym are two more places from which we can imagine live cablecasts being desirable. If we start cablecasting school board meetings regularly, then we will need our own modulator. I don't know if TBurg and Groton are cabled to allow live transmission or not, but given distances, it might be worth providing if they follow through on their production plans. I believe that as the educational community's obsession with computers eases up a bit, it will start to more fully recognize, appreciate and embrace other forms of educational technology. And as the price of video production keeps decreasing, I predict a sharply increasing demand for its educational application. 3 Letter Sent to Area Schools Regarding: Survey of interest in accessing television production equipment and support to create educational programming for Educational Access TV, cable channel 54. Date: October 5, 1998 Five years ago, I designed a pilot course which combines instruction in English and Video Production. Students attend a double period class, every day of the school year, for one credit in Technology plus their required credit for either English 11 or English 12. Through continuous grants, we have secured video equipment from Time Warner Corporation. In exchange, we provide programming for Educational Access TV, cable channel 54. Our show, Lake Street News, airs Friday nights at 7:00. We just delivered our 68th show last Friday. Our programming consists of news, features, fictions, and live - to -tape (multiple camera) productions of presentations, performances, and important public meetings such as our annual "Meet the School Board Candidates" forum. Last year, our crew taped the Eckert Drug Quiz Finals at the Holiday Inn and sent a copy to the winners in Groton at their request. Our students have been excited and challenged by the opportunity to develop communication skills and work habits in doing real, public work. The reason I'm writing to you is that I have been asked to represent Educational Access TV on the committee which is making recommendations to be used in negotiating a new franchise agreement between Time Warner and our county. I am expected to document both the need for video equipment and the willingness of school districts to use the technology to create programming for Ed. Access TV. Would you please forward a copy of this letter to anyone in your school, or district, who you think might be interested in educational video production. They can express their interest by calling me at school (274-2192) or at home (387-6977). I can answer questions, help them think about possibility, or arrange a meeting at IHS's Gun Hill Studio for those who want a closer look at what we are doing and advice for starting their own program. Thank you. Jeff Spence "G" Task Force Preliminary Report Many of the issues facing governments in regard to cable access relate to improvements in the infrastructure that will permit either additional sites to come on line or will facilitate monitoring of remote equipment. Additional issues include the facilities and equipment available for government broadcasts and the maintenance of equipment provided under the franchise agreement. Infrastructure issues are clearly uppermost in the minds of Departments of Public Works officials in the City, and presumably in the County as well. In this round of negotiations, City officials want to make sure that all City -owned structures are connected to the I -Net and that connections are made to the inside walls of buildings, not just to the pole. Telemetry from remote sites is very important, as the City and other public institutions such as Bolton Point upgrade or increase the number of remotely monitored sites such as pumping stations and water tanks. The officials planning for these remote installations also stress the need for send and receive capabilities from these sites. Traffic planners would like to improve the monitoring and flexibility of traffic signals in the downtown area by piggybacking on the cable infrastructure in that area. Again, a send and receive capability is required. Although underground installations are protected from the forces of nature, engineering planners seemed content with overhead installations except possibly in the Collegetown area, where overhead lines prevent access by fire department ladder trucks. Engineers also asked for additional drops in the downtown area to handle traffic signal sensing devices. Local transportation planners may also have the need for connections to bus shelters, and to parking garages for security systems. . The Planning Department of the City expressed strong interest in extension of cable access to the Cherry Street Industrial Park and its proposed expansion areas, and also to the developing South West Land Use Area and to any parts of Inlet Island which do not currently have cable access. The Ithaca Fire Department would like to have broadcast capability at its training center on Pier Road, which is rapidly evolving into a regional facility. This department envisions broadcasting training sessions from Pier Road which could be received in fire stations around the County. The City and County have differed in their approach to facilitating public broadcasts, and the City's current approach of using a mobile cart for broadcasts which originate in City Hall has not proved entirely satisfactory from a technical point of view. One suggestion which should be examined more closely is the construction of a small room (similar to the one used for County broadcasts) at the rear of Common Council Chambers. Much of the current equipment could be used in such a new facility, and construction costs should be minimal. Maintenance of existing broadcast equipment continues to be a problem. The current contract is written in a way that makes maintenance a low priority for the Franchisee, and neither party is satisfied. One possible solution is to use BOCES or another third -party provider. Time Warner Cable Social Contract Progress Report 1996 Summary On November 30, 1995, the Federal Communications Commission ("FCC") approved Time Warner Cable's ("TWC") Social Contract. The FCC found that the Contract will advance the public interest by: (i) assuring fair and reasonable rates for TWC's cable service customers; (ii) facilitating the creation of a low-cost, lifeline basic service level; (iii) improving TWC's cable service by substantially upgrading the channel capacity and technical reliability of its cable systems; and (iv) reducing the administrative burden and cost of regulation far local governments, the FCC and TWC. In addition, TWC agreed to extend its public service commitment to education in four general areas: (i) providing one free service connection to every school passed by cable; (ii) offering a free monthly educational program listing to each connected school; (iii) producing and distributing training materials to facilitate teachers' use of cable's broadband services; and (iv) providing a high speed modem and 'on-line service to each connected school as that service is launched in TWC markets. During Time Warner Cable's first year of operation under the Social Contract, significant strides have been made toward meeting these goals. The immediate benefit of the Social Contract was the resolution of over 900 rate complaints and approximately $4.7 million plus interest was refunded to customers. 1 ti In early 1996 and in accordance with the Social Contract, TWC lowered the rate on the basic service tier of affected systems to a level 10% below the rates which were current on the publication date of the Social Contract. In addition to creating the lifeline basic service, TWC has upgraded systems located in large urban, suburban and in small rural communities. The upgrades have had a dramatic positive impact on picture quality and system reliability and have increased the programming available to customers. Education Commitment Teacher Training Materials TWC developed and produced "Classroom Connections", materials to help teachers better utilize cable's broadband services. The kit include's a fourteen minute introductory video, a forty-eight page resource guide and a poster highlighting networks available free to schools through Cable in the Classroom. To date, 13,000 kits have been distributed along with 20,000 additional copies of the resource guide. TWC divisions across the country have presented kits to school administrators and are conducting workshops for teachers using the materials. School Connectivity TWC divisions have pursued school connections at an aggressive pace. To date, more than 95% of the public secondary. schools in TWC areas have received a cable connection and BST and CPST service at no cost, with public elementary and private K-12 schools closely following that number. This represents over 13,000 schools and 7.5 million students who can benefit from the commercial - free, educational programs distributed through Cable in the Classroom. Examples include: 2 Philadelphia, PA As a direct result of the Social Contract, representatives from TWC's Wade Cable system have formed a school advisory committee which meets monthly and includes the system general manager, the deputy superintendent of the Philadelphia School System and leaders from the school clusters in Wade's franchise area. After conducting a technical survey to determine the wiring and equipment status of each school, the system is now finalizing all connections and will move forward with teacher information and training plans. GardenGrove,CA This system in TWC's Los Angeles Division is participating in the reactivation of an elementary school which had been closed for fourteen years. Because the school is undergoing substantial reconstruction, the division is wiring each of its twelve classrooms, the library and the school auditorium at no charge. Educational Program Listings TWC divisions provide more than 20,000 copies of Cable in the Classroom magazine free to connected schools each month. The magazine contains complete program listings, by curriculum content, as well as a TWC-specific page featuring articles of interest to teachers. High Speed On-line Service To Schools To date, Road Runner, TWC's high-speed, on-line service, has been launched in three markets: Akron/Canton, OH, Elmira, NY and, most recently, San Diego, CA. In Canton, OH, TWC engineers are working with city school technicians to determined the most effective interface for the school 3 district and are finalizing plans that will enable simultaneous Road Runner connections to approximately forty schools. In recent remarks at a Kent State University Education Partnership meeting Dr. Jim Ross, Director of Technology for Canton City Schools said, "We are fortunate to be the first school district to employ Road Runner on a networked basis and, by year's end, we anticipate more than 2,000 classroom PCS will be connected to this service. In fact, at this very minute, Time Warner Cable staff is in the midst of a week long training workshop for all our district Media Resource Coordinators." In Elmira, NY, which served as the Road Runner beta test site, retrofitting and connecting all 30 schools in the district to cable and Road Runner is currently being completed. By the end of 1997, TWC expects to launch Road Runner in ten markets. School connections will be part of those launches. Home Wiring Policy Under the Social Contract, Time Warner Cable was required to provide subscribers with special rights to the wiring installed within their dwelling units prior to termination of cable service, and to notify subscribers regarding such rights. Time Warner Cable's model notice to subscribers was approved by the Cable Services Bureau on September 11, 1996 and Time Warner Cable has, subsequently provided notice to its subscribers regarding these special rights to home wiring in accordance with the Social Contract. 4 Upgrade Requirement Time Warner Cable is required to upgrade every cable system covered by the Social Contract to 550 MHz or 750 MHz within five years after the effective date of the Social Contract. At least 50% of all customers will be served by a system with a capacity of at least 750 MHz, of which at least 200 MHz is expected to be allocated to digital distribution. Fiber -to -the -node architecture, with each node serving approximately 500 homes, will be deployed to improve the signal quality and reliability of these systems. 1996 Plant Upgrades At the end of 1996, Time Warner Cable's investment in upgrading and rebuilding its cable systems in compliance with the Social Contract was $1.4 billion. The investment has affected approximately 3.6 million customers who are being served by upgraded plant in franchises where upgrades were totally or partially completed. These customers already are benefiting from increased services and programming choice and enhanced system reliability and picture quality. In the following section, a description summarizing the activity which occurred in 1996 and the activity that is projected to occur in 1997 will be divided into the following categories: the five states where TWC has the largest number of subscribers (New York, North Carolina, Florida, Ohio and Texas) and the following regions where the remainder of our subscribers are located (East, South, Midwest and West). Since many of our cable systems cover more than one franchise area or community, all of the franchise areas impacted by the upgrade may not be listed in the summary. 5 In addition, in those locations where the system only covers a portion of a franchise area, the summary may include only part of the franchise area described. The State of New York Albany By the end of 1996, the system serving Albany, NY had been completely upgraded to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 44 to 8. Over 66,000 customers have benefited from the upgrade. In addition to Albany, several communities near Albany including Troy, Battenkill, Saratoga and Glenville were upgraded. About two-thirds of the TroyBattenkill system was upgraded to 750 MHz and the rest was upgraded to 550 MHz. The upgraded system utilizes fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 47 to 13. Over 33,200 customers benefited from the 750 MHz upgrade. A small portion of the Saratoga system (Glenville) was upgraded from 300 MHz to 550 MHz while the rest of the system was upgraded to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 48 to 6. Over 19,300 customers benefited from the 750 MHz upgrade. 6 Binghamton By the end of 1996, the system serving Binghamton, NY had been completely upgraded from 330 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 61,000 customers have benefited from the upgrade. In addition to Binghamton, several communities near Binghamton including Oneonta, Sidney, Cooperstown, New Berlin, Delhi, Bainbridge and Corning were upgraded from 330-450 MHz to 550 MHz. The upgraded systems utilize fiber - to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 32,400 customers benefited from the upgrades. In 1997, the system serving Oxford, NY is scheduled to be completely upgraded from 330 MHz to 550 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 760 customers are expected to benefit from the upgrade. Liberty By the end of 1996, 97% of the system serving Orange County/Sullivan, NY had been completely upgraded from 300-330 MHz to 550 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 60,100 customers have benefited from the upgrade. 7 In addition to Orange County/Sullivan, several communities in the surrounding area including Jamestown and Fredonia were upgraded from 300-450 MHz to 550 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 27,600 customers benefited from the 550 MHz upgrades. New York City By the end of 1996, the system serving Mt. Vernon, NY had been completely upgraded from 450 MHz to at least 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 15,900 customers have benefited from the upgrade. In addition, system upgrades were in progress in Southern Manhattan and Eastern Queens. Both systems are being upgraded from 550 MHz to at least 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability. Over 32,000 customers had benefited from the upgrades. In 1997, the system upgrades in Southern Manhattan and Eastern Queens are scheduled to continue with an additional 177,000 customers converted to the new systems by the end of the year. In addition, the upgrade of the system serving Western Queens is scheduled to begin. The system will be upgraded from 550 MHz to at least 750 MHz and will utilize fiber -to -the -node architecture. Over 8 53,500 customers are expected to benefit from the upgrade. Rochester In 1997, the upgrade of the system serving the Finger Lakes region near Rochester, NY is scheduled to begin. The system will be upgraded from 300 MHz to 750 MHz. The upgraded system will utilize a fiber -rich architecture to improve picture quality and system reliability. Over 47,700 customers are expected to benefit from the upgrade and expanded channel capacity. Staten Island In 1997, the upgrade of the system serving Staten Island is scheduled to begin. The system will be upgraded from 550 MHz to at least 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 23,400 customers are expected to benefit from the upgrade. Syracuse By the end of 1996, 77% of the system serving Syracuse, NY had been upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture with a maximum of six amplifiers in cascade. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 66,200 customers have benefited from the upgrade. In addition to Syracuse, several communities in the surrounding area including Rome, Massena, Ogdensburg, Malone and Seneca were upgraded from 300-450 MHz to 550 MHz. The upgraded systems utilize fiber -rich architecture. The 9 upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 45,700 customers benefited from the upgrades. In 1997, the upgrades of the systems serving Oswego and Oneida, NY are scheduled to begin. The systems will be upgraded from 450 MHz to 750 MHz. Over 20,600 customers are expected to benefit from the upgrades. The State of North Carolina Charlotte By the end of 1996, the system serving Charlotte and Mecklenburg County, NC had been completely upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 173,200 customers have benefited from the upgrade. In 1997, the upgrades of the systems serving Gastonia, Monroe and Rockingham, NC are scheduled to begin. The systems will be upgraded from 330 MHz to 750 MHz in Gastonia and Monroe and from 330 MHz to 550 MHz in Rockingham. The upgraded systems will utilize fiber -to -the -node architecture. Over 33,200 customers are expected to benefit from the upgrades. Greensboro By the end of 1996, the system serving Greensboro, NC had been completely 10 upgraded from 300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 54,100 customers have benefited from the upgrade. In 1997, the upgrades of the systems serving Alamance County, Archdale, High Point, Winston-Salem, North Western Randolph County and Guilford County are scheduled to begin. The systems will be upgraded from 330-400 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture to improve signal quality and system reliability. Over 55,700 customers are expected to benefit from the upgrades. Raleigh By the end of 1996, 96% of the system serving Durham, NC had been completely upgraded from 300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 30 to 4. Over 56,400 customers have benefited from the upgrade. In addition to Durham, upgrades are in progress or completed in several surrounding communities including Selma, Whiteville and Fayetteville. These systems are being upgraded from 270-330 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system 11 reliability were improved with a reduction in the longest amplifier cascade from 30 to 4. Over 7,300 customers benefited from the upgrades. By the end of 1997, the system upgrade in Durham is scheduled to be completed with an additional 3,400 customers converted to the new system. The system upgrade in Fayetteville will continue with an additional 38,200 customers scheduled for conversion to the upgraded system by the end of the year. In addition, the upgrades of the systems serving Raleigh, Chapel Hill and Wake Forest are scheduled to begin. The systems will be upgraded from 300-450 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 47,600 customers are expected to benefit from the upgrade. Wilmington Bythe end of 1996, 73% of the system serving Wilmington and 48% of the system serving Newport, NC had been upgraded from 330-450 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 62,400 customers have benefited from the upgrades. In 1997, the system upgrades in Wilmington and Newport will continue with an additional 14,600 customers scheduled for conversion to the upgraded system by the end of the year. In addition, the upgrade of the system serving Cherry Point, 12 NC is scheduled to begin. The system will be upgraded from 330 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 3,000 customers are expected to benefit from the upgrade. The State of Florida Orlando By the end of 1996, 92% of the system serving Orlando, 64% of the system serving Melbourne and the system serving Viera had been upgraded from 330- 450 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 30 to 7. Over 303,800 customers have benefited from the upgrades. In 1997, the system upgrades in Orlando, Ormond Beach and Melbourne is scheduled to be completed with an additional 102,000 customers converted to the upgraded systems by the end of the year. In addition, the upgrades of the systems serving communities in Orange County, Osceola County and Marion/Sumter are scheduled to begin. The systems will be upgraded from 330 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 7,000 customers are expected to benefit from the upgrades. Tampa Bay By the end of 1996, over 69% of the system serving Clearwater, FL and over 45% of the system serving Hillsborough County had been upgraded from 300 13 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade to 4. Over 137,100 customers have benefited from the upgrade. By the end of 1997, the system upgrade in Clearwater is scheduled to be completed with an additional 67,300 customers converted to the new system. The system upgrade in Hillsborough County will continue with an additional 38,900 customers scheduled for conversion to the upgraded system by the end of the year. In addition, the upgrades of the systems serving St. Petersburg, Tampa and Haines City are scheduled to begin. The systems will be upgraded from 330- 550 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 123,100 customers are expected to benefit from the upgrades. The State of Ohio Cincinnati By the end of 1996, 58% of the system serving the Cincinnati, Ohio metropolitan area had been upgraded from dual 300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 54,600 customers have benefited from the upgrade. In 1997, the system upgrade in Cincinnati will continue with an additional 88,800 14 customers scheduled for conversion to the upgraded system by the end of the year. Columbus By the end of 1996, 23% of the system serving the Columbus, Ohio metropolitan area had been upgraded from 550 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture which has improved picture quality and system reliability. Over 71,300 customers have benefited from the upgrade. In 1997, the system upgrade in Columbus will continue with an additional 65,700 customers scheduled for conversion to the upgraded system by the end of the year. Akron/Cantonl By the end of 1996, the systems serving Akron, Canton and Youngstown, OH Youngstown had been upgraded from 330 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 216,200 customers have benefited from the upgrade. Western, OH By the end of 1996, the systems serving London, Urbana, Troy, Ottawa, and Sidney, OH had been completely upgraded from 300/400 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability by reducing the longest amplifier 15 cascade to less than 7. Over 32,500 customers have benefited from the upgrades. The system serving Lewisburg, OH was substantially completed by the end of 1996, with approximately 94% of the plant upgraded from 300 MHz to 750 MHz. In addition, the community of Greenville, OH was upgraded from 450 MHz to 550 MHz. Over 7,300 customers benefited from the upgrade. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. In 1997, the system upgrades in Tipp City, Oxford, St. Marys, Bradford/Covington and Peebles are scheduled to begin. The systems will be upgraded from 300-450 MHz to 750 MHz in Tipp City, Oxford, St. Marys and Bradford/Covington and from 300 MHz to 550 MHz in Peebles. The upgraded systems will utilizes fiber -to -the -node architecture. Over 18,900 customers are expected to benefit from the upgrades. The State of Texas Austin By the end of 1996, the systems serving Round Rock, Hutto, Taylor, Granada Hills, Dripping Springs, City of Hays and Lago Vista, TX had been completely upgraded from 400 MHz to 750 MHz. In addition, approximately 14% of the upgrade in Austin, TX had been completed. The upgraded systems utilize fiber - to -the -node architecture. The upgrades vastly improved picture quality and 16 Houston system reliability and increased the programming available to customers. Over 36,000 customers have benefited from the upgrades. In 1997, the system upgrade in the City of Austin will continue with an additional 67,000 customers scheduled for conversion to the upgraded system by the end of the year. By the end of 1996, over 57% of the system serving Houston, TX had been upgraded from 350 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 92,200 customers have benefited from the upgrade. In addition to Houston, several communities near Houston including Harris County, Fort Bend County, Missouri City, Stafford, Jersey Village, Hilshire Village and Spring Valley were either completely upgraded or are in the process of being upgraded. All of the systems were upgraded or will be upgraded from 350 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 42 to 6. Over 39,100 customers benefited from the upgrades. 17 In 1997, the system upgrades in Houston and Harris County will continue with an additional 59,100 customers scheduled for conversion to the upgraded systems by the end of the year. In addition, the upgrade of the system serving Brazoria County is scheduled to begin. The system will be upgraded from 350 MHz to 750 MHz. The upgraded system will utilizes fiber -to -the -node architecture. Over 1,000 customers are expected to benefit from the upgrade. San Antonio By the end of 1996, approximately 38% of the system serving San Antonio, TX had been upgraded from 350 MHz to 750 MHz. The upgraded system will utilize a fiber -rich architecture to expand the channel capacity and improve the signal quality and system reliability. Over 83,600 customers have benefited from the upgrade. In 1997, the system upgrade in San Antonio will continue with an additional 51,300 customers scheduled for conversion to the upgraded system by the end of the year. El Paso By the end of 1996, 95% of the system serving El Paso, TX had been upgraded from 350 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 109,000 customers have benefited from the upgrade. 18 In 1997, the system upgrade in El Paso will continue with an additional 2,100 customers scheduled for conversion to the upgraded system by the end of the year. Wichita Falls By the end of 1996, the system serving Wichita Falls, TX had been completely upgraded from 300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 23,900 customers have benefited from the upgrade. East Boston, MA By the end of 1996, over 67% of the system serving Malden, MA and the surrounding areas (Salem, Medford, Swampscott, Lynn, Somerville, Chelsea and Everett) had been upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 92,100 customers have benefited from the upgrade. In 1997, the system upgrade in Malden will continue with an additional 29,500 customers scheduled for conversion to the upgraded system by the end of the year. In addition, the upgrade of the system serving Foxborough and surrounding 19 Bergen, NJ communities is scheduled to begin. The system will be upgraded from 450 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 8,800 customers are expected to benefit from the upgrade. By the end of 1996, the system serving Bergen, NJ had been completely upgraded to 750 MHz. The upgraded system utilizes fiber -rich architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 52,800 customers have benefited from the upgrade. Portland, ME By the end of 1996, the system serving Portland, ME had been completely upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. The upgrade vastly improved picture quality and system reliability with a reduction in the longest amplifier cascade from 50 to 4. Over 61,200 customers have benefited from the upgrade. Reading, P2 By the end of 1996, the system serving Hamburg, PA had been completely upgraded from 300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. The upgrade vastly improved picture quality and system reliability by reducing the longest amplifier cascade from 30 to 7. Over 6,300 customers have benefited from the upgrade. 20 In 1997, the system upgrades in Lebanon and Reedsville are scheduled to begin. The system will be upgraded from 300 MHz to 750 MHz in Lebanon and from 300 MHz to 550 MHz in Reedsville. The upgraded systems will utilize fiber -to - the -node architecture. Over 32,800 customers are expected to benefit from the upgrades. Eastern PA By the end of 1996, the system serving Levittown, PA had been completely upgraded to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over.40,700 customers have benefited from the upgrade. . Western PA By the end of 1996, the systems serving Monroeville and Coraopolis, PA had been completely upgraded to 750 MHz. The upgraded systems utilize fiber -rich architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 48,700 customers have benefited from the upgrade. In addition, the system serving Canonsburg had been completely upgraded to 600 MHz. Over 16,900 customers have benefited from the upgrade. In 1997, the system upgrades in Johnstown and Clearfield are scheduled to begin. The Johnstown system will be upgraded from 350 MHz to 750 MHz and the 21 South Columbia, SC Clearfield system will be upgraded from 300 MHz to 550 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 15,000 customers are expected to benefit from the upgrades. By the end of 1996, the upgrade of the system serving Columbia, SC had begun. The system will be upgraded from 330-550 MHz to 750 MHz. The upgraded system will utilize fiber -rich architecture which will increase the channel capacity and improve signal quality. Over 3,200 customers have benefited from the upgrade. In addition to Columbia, over 85 % of the system serving Summerville, SC had been upgraded from 330 MHz to 550 MHz. The upgraded system utilizes a fiber -rich architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 16,400 customers have benefited from the upgrade. By the end of 1997, the system upgrade in Summerville will be completed with an additional 2,400 customers scheduled for conversion to the new system. The system upgrade in Columbia will continue with an additional 36,400 customers scheduled for conversion to the upgraded system by the end of the year. 22 Houma, LA Jackson, MS By the end of 1996, the system serving Houma, LA had been completely upgraded to 750 MHz. The upgraded system utilizes fiber -rich architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 22,700 customers have benefited from the upgrade. In 1997, the upgrade of the system serving the Jackson, MS metropolitan area is scheduled to begin. The system will be upgraded from 330 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture to improve picture quality and system reliability. Over 30,000 customers are expected to benefit from the upgrade. Kansas City, MO By the end of 1996, approximately 39% of the system serving Kansas City, MO, ' Kansas City, KS and neighboring communities had been upgraded from 270-300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. The upgrade reduced the longest amplifier cascade from 36 to 5. Over 25,000 customers have benefited from the upgrade. In 1997, the system upgrade in Kansas City will continue with an additional 128,000 customers scheduled for conversion to the upgraded system by the end 23 of the year. Memphis, TN By the end of 1996, the system serving Memphis, TN had been completely upgraded from 300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 105,300 customers have benefited from the upgrade. In addition to Memphis, 92% of the system serving Bartlett, TN had been upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. Subscriber conversion to the new system will begin in the second quarter of 1997. By the end of 1997, the system upgrade in Bartlett will be completed with 10,500 customers scheduled for conversion to the new system. In addition, the upgrades of the systems serving West Memphis, Southaven, Germantown, Collierville and Olive Branch/Hornlake are scheduled to begin. The systems will be upgraded from 300-450 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the - node architecture. Over 22,200 customers are expected to benefit from the upgrades. 24 Midwest Chicago, IL Eau Claire, WI Green Bay, WI By the end of 1996, the systems serving DuPage County and Chicago, IL had been completely upgraded to 750 MHz. The upgraded systems utilize fiber -to - the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 103,500 customers have benefited from the upgrades. By the end of 1996, the system serving Eau Claire, WI had been completely upgraded from 330 MHz to 550 MHz. The upgraded system utilizes fiber -rich architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 28,100 customers have benefited from the upgrade. By the end of 1996, the upgrade of the system serving Green Bay, WI had begun. The system will be upgraded from 330 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. By the end of 1997, the system upgrade in Green Bay is scheduled to be 'completed with 34,600 customers converted to the new system. In addition, the upgrade of the system serving Appleton is scheduled to begin. The system will be upgraded from 350-450 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture to improve picture quality and increase system 25 reliability. Indianapolis, IN In 1997, the upgrades of the systems serving Indianapolis, Avon, Fortville and Zionsville, IN are scheduled to begin. The systems will be upgraded from 330- 400 MHz to 750 MHz in Indianapolis, Avon and Zionsville and from 400 MHz to 600 MHz in Fortville. The upgraded systems will utilize fiber -to -the -node architecture to improve picture quality and system reliability. Over 52,000 customers are expected to benefit from the upgrades. Lincoln, NE By the end of 1996, the system serving York, NE had been upgraded from 270 MHz to 550 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. The upgrade reduced the longest amplifier cascade from 13 to 8. Over 3,200 customers have benefited from the upgrade. In 1997, the upgrades of the systems serving Crete, Nebraska City, Auburn, Fremont and Douglas County, NE are scheduled to begin. The systems will be upgraded from 300 MHz to 550 MHz in Crete, Nebraska City, Auburn and Fremont and from 550 MHz to 750 MHz in Douglas County. Over 27,000 customers are expected to benefit from the upgrades. 26 Milwaukee, WI By the end of 1996, the system upgrades in South Milwaukee, Glendale and Shorewood, WI had begun. The systems are being upgraded from 400 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. The upgrades will vastly improve picture quality and system reliability. By the end of 1997, the system upgrade in South Milwaukee and surrounding communities is scheduled to be completed with 17,400 customers converted to the new system. The system upgrade in Glendale and surrounding communities will continue with 15,000 customers scheduled for conversion to the upgraded system by the end of the year. In addition, the upgrades of the systems serving Greenfield, Brookfield, Wauwatosa and surrounding communities are scheduled to begin. The systems will be upgraded from 400- 450 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 27,000 customers are expected to benefit from the upgrades. Oakland Cry, MI By the end of 1996, the system serving Oakland County, MI had been completely upgraded to 750 MHz. The upgraded system utilizes fiber -rich architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 36,500 customers have benefited from the upgrade. In -1997, the system upgrade in Dearborn, MI is scheduled to begin. The system 27 will be upgraded from 450 MHz to 750 MHz. The upgraded system will utilize fiber -rich architecture. Over 31,400 customers are expected to benefit from the upgrade. West Bakersfield, CA By the end of 1996, 42% of the system serving Bakersfield, CA had been upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 11,300 customers have benefited from the upgrade. By the end of 1997, the system upgrade in Bakersfield is scheduled to be completed with an additional 63,400 customers converted to the new system. The upgrades of the systems in Tehachapi and Avenal are scheduled to begin. The systems will be upgraded from 330 MHz to 550 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 5,800 customers are expected to benefit from the upgrades. Los Angeles, CA By the end of 1996, the systems serving Huntington Beach and Stanton, CA had been completely upgraded from 360 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 26 to 6. 28 Over 53,800 customers have benefited from the upgrade. In addition, upgrades are in progress in several surrounding communities including Westminster, Orange and West Valley. These systems are being upgraded from 360-450 MHz to 750 MHz. By the end of 1996, over 23,000 customers benefited from the upgrades. The upgraded systems utilize fiber -to - the -node architecture. The upgraded plant will reduce the longest amplifier cascade to 4. By the end of 1997, the system upgrades in Westminster and Orange are scheduled to be completed with an additional 15,700 customers converted to the new system. The system upgrade in West Valley will continue with an additional 41,200 customers scheduled for conversion to the upgraded system by the end of the year. In addition, the upgrades of the systems serving Fountain Valley, Rossmoor, Cypress and South Pasadena are scheduled to begin (the Fountain Valley, Rossmoor and Cypress upgrades are scheduled to be completed in 1997). The systems will be upgraded from 360-400 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 22,900 customers are expected to benefit from the upgrade. Oahu, HI By the end of 1996, 96% of the system serving Oahu had been upgraded from 360 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node 29 architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 20 to 7. Over 232,600 customers have benefited from the upgrade. By the end of 1997, the system upgrade in Oahu is scheduled to be completed with an additional 13,200 customers converted to the new system. In addition, the upgrade of the Sun system is scheduled to begin. The system will be upgraded from 330 MHz to 750 MHz. The upgraded system will utilize fiber -to - the -node architecture. Over 8,300 customers are expected to benefit from the upgrade. San Diego, CA By the end of 1996, 74% of the system serving San Diego, CA had been upgraded from 380 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. The new architecture reduced the longest amplifier cascade from 36 to 6. Over 135,300 customers have benefited from the upgrade. In addition, the system serving Barstow, CA was upgraded from 330 MHz to 550 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 9,800 customers had benefited from 30 Other the upgrade. By the end of 1997, the system upgrade in San Diego is scheduled to be completed with an additional 40,800 customers converted to the new system. At the end of 1996, the systems serving Champaign, IL and St Louis Park, MN had been upgraded to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Approximately 80% of the system serving Danville, IL had been upgraded to 750 MHz. Over 54,700 customers have beriefited from the upgrades. In addition, the systems serving Terre Haute, IN and Lynchburg, VA were upgraded to 550 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 50,300 customers have benefited from the upgrades. By the end of 1997, the system upgrade in Danville, IL is scheduled to be completed with an additional 2,900 customers converted to the new system. The upgrades of the systems in Litchfield, CT, Laredo, TX, Clarksburg/Fairmont, WV, Ft. Benning, GA, Lake City, FL, Pt. Coupee, LA, Picayune, MS, 31 Madisonville, KY, St. John the Baptist, LA, and Jordan, MN are scheduled to begin. The Litchfield and Laredo systems will be upgraded to 750 MHz and the other systems will be upgraded to 550 MHz. Over 99,700 customers are expected to benefit from the upgrades. Conclusion Time Warner Cable is committed to meeting the requirements of the Social Contract as soon as possible by bringing state-of-the-art cable system technology to all of its customers. Time Warner Cable's commitment is underscored by its accelerated investments. As described in this first report, Time Warner Cable's investment activity spans all of its operating divisions and all types of franchises. Already, Tithe Warner Cable's upgraded systems are bringing new services, expanded choice and improved picture quality and service to millions of customers across the country. 32 Time Warner Cable Social Contract Progress Report 1997 Summary On November 30, 1995, the Federal Communications Commission ("FCC") approved Time Warner Cable's ("TWC") Social Contract. The FCC found that the Contract will advance the public interest by: (i) assuring fair and reasonable rates for TWC's cable service customers; (ii) facilitating the creation of a low-cost, lifeline basic service level; (iii) improving TWC's cable service by substantially upgrading the channel capacity and technical reliability of its cable systems; and (iv) reducing the administrative burden and cost of regulation for local governments, the FCC and TWC. In addition, TWC agreed to extend its public service commitment to education in four general areas: (i) providing one free service connection to every school passed by cable; (ii) offering a free monthly educational program listing to each connected school; (iii) producing and distributing training materials to facilitate teachers'' use of cable's broadband services; and (iv) providing a high speed modem and on-line service to each connected school as that service is launched in TWC markets. During Time Warner Cable's second year of operation under the Social Contract, significant strides have been made toward meeting these goals. The immediate benefit of the Social Contract was the resolution of over 900 rate complaints and approximately $4.7 million plus interest was refunded to customers. 1 In early 1996 and in accordance with the Social Contract, TWC lowered the rate on the basic service tier of affected systems to a level 10% below the rates which were current on the publication date of the Social Contract. In addition to creating the lifeline basic service, TWC has upgraded systems located in large urban, suburban and in small rural communities. The upgrades have had a dramatic positive impact on picture quality and system reliability and have increased the programming available to customers. Education Commitment Teacher Training Materials Response to the initial development and subsequent distribution of 13,000 "Teacher Training Tools" kits (formerly called "Classroom Connections") has been extremely positive. Teachers have praised the accessibility of the information in the fourteen -minute video and forty-eight page resource guide. The fact that the materials were developed by classroom teachers for classroom teachers helped insure that the information would be useful and credible. An additional 20,000 copies of the resource guide were produced to serve as handouts during teacher training workshops. To date, nearly 700 such workshops have been held throughout TWC franchise areas. Many of these workshops have been certified for in-service credits by local school districts. TWC recently has printed another 15,000 copies of the workbooks to continue servicing these field efforts. 2 School Connectivity Already one of the industry leaders in school connectivity, TWC divisions nevertheless redoubled those efforts over the past year, connecting 98% of publicsecondary schools and 95% of public elementary schools in TWC markets with free BST and CPST service. Over time the company has provided more than one million dollars worth of TV's and VCR's to connected schools, giving teachers and students the opportunity to benefit from the commercial -free, educational programs distributed through Cable in the Classroom. Educational Program Listings TWC divisions provide more than 20,000 copies of monthly program listings via Cable in the Classroom magazine free to connected schools. In addition to complete listings by curriculum content, the magazine contains articles with information on how best to utilize the resources provided and a page dedicated to school efforts specific to TWC communities. High Speed, On-line Service to Schools Road Runner, TWC's high-speed, on-line content service, has been launched in 10 TWC divisions: Akron/Canton, OH, Corning, Elmira and Binghamton, NY, San Diego, CA, Portland, ME, Columbus, OH, Tampa, FL, Memphis, TN, Albany, NY, Honolulu,HI, and El Paso, TX. Over 425 schools in those areas have received a free cable modem and the Road Runner content service to date. 3 Because technical configurations and curriculum needs vary widely from school to school even within the same district, the connections have provided opportunities to develop stronger ties and new projects between the company and the schools which go beyond the Social Contract commitments. For instance: The San Diego division designated Toler Elementary its Technology Partner School, providing modems and Road Runner service to every classroom. In addition the division purchased five computers for the school and helped them acquire ten more through a local foundation. In Akron/Canton, the division is assisting a first grade teacher in a year-long school -to -home test by providing free Road Runner service and a modem to every child's home, in addition to the modem and service in the classroom. In El Paso, three high schools participated along with a studio audience in a Court TV teen summit on border issues via Road Runner voice and video connectivity. Home Wiring Policy Under the Social Contract, Time Warner Cable was required to provide subscribers with special rights to the wiring installed within their dwelling units prior to termination of cable service, and to notify subscribers regarding such rights. Time Warner Cable's model notice to subscribers was approved by the Cable Services Bureau on September 11, 1996 and Time Warner Cable has 4 subsequently provided notice to its subscribers regarding these special rights to home wiring in accordance with the Social Contract. Upgrade Requirement Time Warner Cable is required to upgrade every cable system covered by the Social Contract to 550 MHz or 750 MHz within five years after the effective date of the Social Contract. At least 50% of all customers will be served by a system with a capacity of at least 750 MHz, of which at least 200 MHz is expected to be allocated to digital distribution. Fiber -to -the -node architecture, with each node serving approximately 500 homes, will be deployed to improve the signal quality and reliability of these systems. 1997 Plant Upgrades At the end of 1997, Time Warner Cable's cumulative investment in upgrading and rebuilding its cable systems in compliance with the Social Contract was $2.1 billion. The investment has affected approximately 5.5 million customers who are being served by upgraded plant in franchises where upgrades were totally or partially completed. These customers already are benefiting from increased services and programming choice and enhanced system reliability and picture quality. In the following section, a description summarizing the activity which occurred in 1997 and the activity that is projected to occur in 1998 will be divided into the following categories: the five states where TWC has the largest number of subscribers (New York, North Carolina, Florida, Ohio and 5 Texas) and the following regions where the remainder of our subscribers are located (East, South, Midwest and West). Since many of our cable systems cover more than one franchise area or community, all of the franchise areas impacted by the upgrade may not be listed in the summary. In addition, in those locations where the system only covers a portion of a franchise area, the summary may include only part of the franchise area described. The State of New York Albany During 1997, the system serving Troy, NY was in the process of being upgraded to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. When the amplifiers are replaced with 750 MHz devices, the upgrade will be complete. In 1998, the system serving Pittsfield, MA is scheduled to be completely upgraded from 450 MHz to 550 MHz. The longest amplifier cascade will be reduced from 26 to 8. Over 21,000 customers are expected to benefit from the upgrade. Binghamton In 1997, the system serving Oxford, NY was completely upgraded from 330 MHz to 550 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 700 customers benefited from the upgrade. 6 In 1998, the system serving Newark Valley, NY is scheduled to be completely upgraded from 450 MHz to 750 MHz and the system serving Montrose, PA is scheduled to be completely upgraded from 330 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 2,100 customers are expected to benefit from the upgrades. New York City In 1997, system upgrades continued in Southern Manhattan and Eastern Queens and began in Western Queens, NY. The systems are being upgraded from 550 MHz to at least 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability. Over 180,000 additional customers benefited from the upgrades in 1997. In 1998, the system upgrades in Southern Manhattan, Eastern Queens and Western Queens, NY are scheduled to continue with an additional 190,000 customers converted to the new systems by the end of the year. In addition, the upgrades of the systems serving Northern Manhattan, Southern Queens and Western Brooklyn, NY are scheduled to begin. The systems will be upgraded from 550 MHz to at least 750 MHz and will utilize fiber -to -the -node architecture. Over 63,000 customers are expected to benefit from the upgrades in 1998. Rochester In 1997, the system serving Finger Lakes, NY was upgraded from 300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. Both 7 picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 40 to 10. Over 47,000 customers benefited from the upgrade. Staten Island In 1997, the system upgrade in Staten Island, NY began. The system is being upgraded from 550 MHz to at least 750 MHz. The upgraded system utilizes fiber - to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 16 to 2. Over 24,000 customers benefited from the upgrade in 1997. Syracuse In 1998, the system upgrade in Staten Island, NY is scheduled to continue with an additional 37,000 customers converted to the new system by the end of the year. In 1997, the systems serving Oneida and Oswego, NY were upgraded from 330- 450 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 40 to 6. Over 23,000 customers benefited from the upgrades. In 1998, the systems serving Ilion and Ithaca, NY are scheduled to be completely upgraded from 450 MHz to 750 MHz. The upgraded systems will utilize fiber - 8 to -the -node architecture. Over 42,000 customers are expected to benefit from the upgrades. The State of North Carolina Charlotte In 1997, the system serving Gastonia, NC was completely upgraded from 330 MHz to 750 MHz and the system serving Rockingham, NC was completely upgraded from 330 MHz to 550 MHz. The upgraded systems utilize fiber -to -the - node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 44 to 6. Over 31,000 customers benefited from the upgrades. In 1998, the upgrades of the systems serving Belmont, Gaston County, Metrolina and Monroe, NC are scheduled to begin. The systems will be upgraded from 330 MHz to 750 MHz in Belmont, Gaston County, and Monroe and from 450 MHz to 550 MHz in Metrolina. The upgraded systems will utilize fiber -to -the -node architecture. Over 87,000 customers are expected to benefit from the upgrades. Greensboro In 1997, the systems serving Burlington and High Point, NC were completely upgraded from 300-330 MHz to 750 MHz. In addition, the 750 MHz upgrade of the system serving Winston-Salem, NC began. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 9 72,000 customers benefited from the upgrades in 1997. In 1998, the upgrades of the systems serving Asheboro, Guilford County, and Thom -a -lex, NC are scheduled to begin and the system upgrade in Winston- Salem, NC will continue. The systems will be upgraded from 300-400 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture to improve signal quality and system reliability. Over 58,000 customers are expected to benefit from the upgrades in 1998. Raleigh In 1997, the systems serving Durham and Wake Forest, NC were completely upgraded from 300 MHz to 750 MHz. The systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved. An additional 9,000 customers benefited from the upgrades in 1997. In addition, upgrades are in progress or completed in several surrounding communities including Chapel Hill, Raleigh, Fayetteville and Selma, NC. These systems are being upgraded from 300-450 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved. Over 42,000 customers benefited from the upgrades in 1997. By the end of 1998, the system upgrades in Chapel Hill and Fayetteville, NC are 10 scheduled to be completed with an additional 71,000 customers converted to the new systems. The system upgrade in Raleigh, NC will continue with an additional 57,000 customers scheduled for conversion to the upgraded system by the end of the year. In addition, the upgrades of the systems serving Farmville and Goldsboro, NC are scheduled to begin. The systems will be upgraded from 300 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 9,000 customers are expected to benefit from the upgrades in 1998. Wilmington By the end of 1997, over 95% of the system serving Wilmington, NC was upgraded to 750 MHz. In addition, the system serving Cherry Point, NC was upgraded from 330 MHz to 750 MHz. The upgraded systems utilize fiber -to -the - node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 19,000 customers benefited from the upgrades in 1997. In 1998, the system upgrade in Wilmington is scheduled to be completed. In addition, the upgrade of the system serving Elizabethtown, NC is scheduled to begin. The system will be upgraded from 330 MHz to 550 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 3,000 customers are expected to benefit from the upgrade. 11 The State of Florida Orlando By the end of 1997, 98% of the system serving Orlando, FL and 97% of the system serving Melbourne, FL were upgraded from 330-450 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 30 to 7. In 1997, over 75,000 additional customers benefited from the continuing upgrades. In 1997, the system serving Ormond Beach, FL was completely upgraded from 330 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 30 to 7. Over 22,000 customers benefited from the upgrade. In addition, the systems serving Holly Hill and Marion/Sumter, FL began upgrades from 330-450 MHz to 750 MHz. The upgraded systems utilize fiber - rich architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 7,500 customers benefited from the upgrades in 1997. By the end of 1998, the system upgrades in Melbourne and Orlando, FL are scheduled to be completed. An additional 10,000 customers are expected to 12 benefit from the upgrades. In 1998, the system upgrades in Evans and Marion, FL are scheduled to begin. The systems will be upgraded from 300-450 MHz to 750 MHz. The upgraded systems will, utilizes fiber -to -the -node architecture. Over 43,000 customers are expected to benefit from the upgrades in 1998. Tampa Bay By the end of 1997, the system serving Clearwater, FL and over 63% of the system serving Hillsborough County, FL were upgraded from 400-450 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade to 6. Over 119,100 additional customers benefited from the upgrades in 1997. In 1997, the system serving Haines City, FL was completely upgraded from 330 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. Both picture quality and system reliability were improved. Over 2,800 customers benefited from the upgrade. In addition, the upgrades of the systems serving St. Petersburg and Tampa, FL from 450-550 MHz to 750 MHz began. The upgraded systems utilize fiber -rich architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 123,000 customers benefited from the upgrades in 1997. 13 By the end of 1998, the system upgrades in Clearwater, St. Petersburg, and Tampa are scheduled to be completed., An additional 71,000 customers are expected to benefit from the upgrades. In 1998, the system serving Apollo Beach, FL is scheduled to be completely upgraded from 300 MHz to 750 MHz and the 750 MHz upgrade of the system serving Hernando County, FL is scheduled to begin. The upgraded systems will utilize fiber -to -the -node architecture. Over 25,000 customers are expected to benefit from the upgrades in 1998. The State of Ohio Cincinnati By the end of 1997, 92% of the system serving the Cincinnati, Ohio metropolitan area was upgraded from dual 300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability with a reduction in the longest amplifier cascade from 40 to 12. An additional 105,000 customers benefited from the continuing upgrade in 1997. In 1998, the system upgrade in Cincinnati is scheduled to be completed with an additional 70,000 customers scheduled for conversion to the upgraded system. In addition, the system serving Green Township, OH is scheduled to be completely upgraded from 550 MHz to 750 MHz. The upgraded system will 14 utilize fiber -to -the -node architecture. Over 18,000 customers are expected to benefit from the upgrade. Columbus By the end of 1997, 75% of the system serving the Columbus, Ohio metropolitan area was upgraded from 550 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture which reduces the amplifier cascade, improves picture quality and system reliability. In 1997, an additional 88,000 customers benefited from the continuing upgrade. In 1998, the system upgrade in Columbus is scheduled to be completed with an additional 19,000 customers scheduled to benefit from the upgraded system. Akron/Canton/ In 1997, the 550/750 MHz upgrade of the system serving Lodi, OH had begun. Youngstown The upgraded system utilizes fiber -rich architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 3,000 customers benefited from the upgrade in 1997. In 1998, the system upgrade in Lodi, OH is scheduled to be completed with an additional 13,000 customers converted to the upgraded system by the end of the year. 15 Western, OH In 1997, the systems serving Oxford, St. Marys, and Tipp City, OH were completely upgraded from 300/400 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. .The upgrades vastly improved picture quality and system reliability by reducing the longest amplifier cascade to less than 7. Over 15,500 customers benefited from the upgrades. In addition, the system upgrade in Piqua, OH began, with approximately 24% of the plant upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers.- Over 2,000 customers benefited from the upgrade in 1997. In 1998, the system upgrades in Kenton, Piqua, Richwood, Wapakoneta and West Union, OH are scheduled to be completed. The systems will be upgraded from 300-450 MHz to 750 MHz in Piqua, Kenton, Richwood, and Wapakoneta and from 300 MHz to 550 MHz in West Union. The upgraded systems will utilize fiber -to -the -node architecture. Over 18,000 customers are expected to benefit from the upgrades in 1998. In addition, the system upgrades in Lima and Marysville, OH are scheduled to begin. The systems will be upgraded from 300 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 9,000 customers are 16 expected to benefit from the upgrades in 1998. The State of Texas Austin Houston By the end of 1997, 50% of the system serving Austin, TX was upgraded from 400 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. An additional 87,000 customers benefited from the upgrade in 1997. In 1998, the system upgrade in the City of Austin is scheduled to be completed with an additional 107,000 customers scheduled for conversion to the upgraded system by the end of the year. By the end of 1997, over 90% of the system serving Houston, TX was upgraded from 360 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. An additional 39,000 customers benefited from the upgrade in 1997. In addition to Houston, several communities near Houston including Bunker Hill Village, Harris County, Hedwig, Hunter's Creek, Piney Point, Southside Place 17 and West University, TX were either completely upgraded or are in the process of being upgraded. All of the systems were upgraded or will be upgraded from 360-550 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 42 to 6. Over 36,000 customers benefited from the upgrades in 1997. In 1998, the system upgrades in Houston and Harris County, TX will continue with an additional 23,000 customers scheduled for conversion to the upgraded systems. In addition, the upgrades of the systems serving Bellaire, Brazoria County and The Meadows are scheduled to be completed. The systems will be upgraded from 360-400 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 6,500 customers are expected to benefit from the upgrades in 1998. San Antonio By the end of 1997, approximately 59% of the system serving San Antonio, TX was upgraded from 360 MHz to 750 MHz. The upgraded system utilizes a fiber - to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 25 to 7. Over 89,000 customers benefited from the upgrade in 1997. In 1998, the system upgrade in San Antonio will continue with an additional 18 El Paso Laredo East Altoona, PA 76,000 customers expected to benefit from the upgraded system. In 1998, the systems serving Grapevine and Lewisville, TX are scheduled to be completely upgraded from 450 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 25,000 customers are expected to benefit from upgraded systems. By the end of 1997, over 90% of the system serving Laredo, TX was upgraded from 300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 24,000 customers benefited from the upgrade in 1997. In 1998, the system upgrade in Laredo is scheduled to be completed. In 1998, the system upgrade in Altoona, PA is scheduled to begin. The system will be upgraded from 450 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 15,000 customers are expected to benefit from the upgrade in 1998. Boston, MA By the end of 1997, over 90% of the system serving Malden, MA and the 19 Johnstown, PA surrounding areas (Salem, Medford, Swampscott, Lynn, Somerville, Chelsea and Everett) was upgraded from 450 MHz to 750 MHz. In addition, the upgrade of the system in Foxboro, MA from 450 MHz to 750 MHz began. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. An additional 36,000 customers benefited from the upgrades in 1997. In 1998,.the system upgrade in Malden is scheduled to be completed with an additional 8,000 customers scheduled for conversion to the upgraded system by the end of the year. In addition, the upgrade of the system serving Foxboro is scheduled to continue and the upgrade of the system in Nashua, NH from 450 MHz to 750 MHz and the system in Fairhaven from 400 MHz to 550 MHz is scheduled to begin. The upgraded systems will utilize fiber -to -the -node architecture. Over 37,000 customers are expected to benefit from the upgrades in 1998. In 1998, the system upgrade in Johnstown, PA is scheduled to be completed. The system will be upgraded from 350 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 32,000 customers are expected to benefit from the upgrade. 20 Litchfield, CT By the end of 1997, the system serving Litchfield, CT was completely upgraded from 330 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. An additional 17,000 customers benefited from the upgrade in 1997. Reading, PA In 1997, the system serving Lebanon, PA was completely upgraded from 300 MHz to 750 MHz and the system serving Reedsville, PA was completely upgraded from 300 MHz to 550 MHz. The upgraded systems utilize fiber -to -the - node architecture. The upgrades vastly improved picture quality and system reliability by reducing the longest amplifier cascade from 48 to 8. Over 32,000 customers benefited from the upgrades in 1997. In 1998, the system upgrade in Reading, PA is scheduled to begin. The system will be upgraded from 450 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 18,500 customers are expected to benefit from the upgrade in 1998. South Birmingham, AL In 1998, the system upgrade in Birmingham, AL is scheduled to begin. The system will be upgraded from 450 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 30,000 customers are expected to 21 benefit from the upgrade in 1998. Charleston, WV In 1998, the system upgrade in Charleston, WV is scheduled to begin. The system will be upgraded from 450 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 16,000 customers are expected to benefit from the upgrade in 1998. Cheylan, WV Columbia, SC In 1998, the system upgrade in Cheylan, WV is scheduled to begin. The system will be upgraded from 450 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 20,000 customers are expected to benefit from the upgrade in 1998. By the end of 1997, over 40% of the system serving Columbia, SC was upgraded from 330-550 MHz to 750 MHz. The upgraded system utilizes fiber -rich architecture which will increase the channel capacity and improve signal quality. An additional 45,000 customers benefited from the upgrade in 1997. In addition to Columbia, the system serving Summerville, SC was completely upgraded from 300 MHz to 550 MHz. The upgraded system utilizes a fiber -rich architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. An additional 3,500 customers benefited from the upgrade in 1997. 22 Jackson, MS In 1998, the system upgrade in Columbia, SC is scheduled to continue with an additional 49,000 customers scheduled for conversion to the new system. In addition, the system upgrades in Andrews, Georgetown and Myrtle Beach are scheduled to be completed with 49,000 customers scheduled for conversion to the upgraded systems in 1998. By the end of 1997, most of the suburban and small municipalities around Jackson, MS were completely upgraded from 330 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture to improve picture quality and system reliability. Over 21,500 customers benefited from the upgrades. Kansas City,MO By the end of 1997, over 75% of the system serving Kansas City, MO, Kansas City, KS and neighboring communities was upgraded from 270-300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastlyimproved picture quality and system reliability and increased the programming available to customers. The upgrade reduced the longest amplifier cascade from 36 to 5. An additional 128,000 customers benefited from the upgrade in 1997. In 1998, the system upgrade in Kansas City is scheduled to be completed with an additional 56,000 customers scheduled for conversion to the upgraded system. 23 Memphis, TN In 1997, the systems serving Bartlett, Collierville, Germantown, Olive Branch/Hornlake, TN and Southhaven, MS were completely upgraded from 300- 450 MHz to 750 MHz and 50% of the system serving Hernando, MS was upgraded from 300 MHz to 750 MHz. The upgraded systems utilize fiber -to -the - node architecture in order to improve signal quality and system reliability. Over 45,000 customers benefited from the upgrades in 1997. By the end of 1998, the system upgrade in Hernando is scheduled to be completed with an additional 1,200 customers expected to benefit from the upgrade. Shreveport, LA In 1998, the system upgrade in Shreveport, LA is scheduled to begin. The system will be upgraded from 380 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 30,000 customers are expected to benefit from the upgrade in 1998. Marietta, GA Midwest In 1998, the system upgrade in Marietta, GA is scheduled to begin. The system will be upgraded from 400 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 21,000 customers are expected to benefit from the upgrade in 1998. 24 Dearborn, MI In 1997, the system serving Dearborn, MI was completely upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 26,000 customers benefited from the upgrade. Green Bay, WI By the end of 1997, the system serving Green Bay, WI was completely upgraded from 330 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 34,000 customers benefited from the upgrade. In addition, the upgrade of the system serving Appleton, WI began. In 1998, the upgrade of the system serving Appleton is scheduled to continue. The system will be upgraded from 350-450 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture to improve picture quality and increase system reliability. Over 52,000 customers are scheduled to benefit from the upgrade in 1998. Indianapolis, IN By the end of 1997, over 48% of the system serving Indianapolis, IN was upgraded from 330 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. The upgrade vastly improved picture quality and system 25 Lincoln, NE reliability and increased the programming available to customers. The upgrade reduced the longest amplifier cascade from 32 to 7. Over 37,000 customers benefited from the upgrade in 1997. In addition, the system serving Avon, Fortville, and Zionsville, IN were completely upgraded from 300-400 MHz to 750 MHz in Avon and Zionsville and from 400 MHz to 600 MHz in Fortville. The upgraded systems utilize fiber - to -the -node architecture to improve picture quality and system reliability. Over 15,500 customers benefited from the upgrades. By the end of 1998, the system upgrade in Indianapolis is scheduled to be completed with an additional 38,000 customers converted to the new system. The upgrade of the systems serving Carmel and Marion, IN are scheduled to be completed. The Carmel system will be upgraded from 450 MHz to 750 MHz and the Marion system will be upgraded from 450 MHz to 600 MHz. The upgraded systems will utilize fiber -to -the -node architecture to improve picture quality and increase system reliability. Over 32,000 customers are scheduled to benefit from the upgrades. In 1997, the systems serving Auburn and Nebraska City, NE were completely upgraded from 300 MHz to 550 MHz. In addition, the systems serving Crete and Fremont, NE were in the process of being upgraded from 300 MHz to 550 MHz. 26 The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. The upgrades reduced the longest amplifier cascade from 26 to 7. Over 6,500 customers benefited from the upgrades in 1997. In 1998, the upgrades of the systems serving Crete and Fremont are scheduled to be completed and the upgrades of the systems serving Seward and Columbus, NE are scheduled to begin. The systems serving Seward, Columbus and Fremont will be upgraded from 300-400 MHz to 750 MHz. Over 17,000 customers are expected to benefit from the upgrades in 1998. Milwaukee, WI In 1997, the systems serving Bayshore, Brookfield, Brown Deer, Cudahy, Fox Point, Glendale, Greenfield, Hales Corner, Oak Creek, River Hills, Shorewood, South Milwaukee, Whitefish Bay and Wauwatosa, WI were completely upgraded from 400 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 30 to 6. Over 65,000 customers benefited from the upgrades in 1997. In 1998, the systems serving Greenfield, Kenosha, and Muskego, WI and surrounding communities are scheduled to be upgraded from 400 MHz to 750 MHz. The Milwaukee system will begin an upgrade from 400 MHz to 750 MHz. 27 The upgraded systems will utilize fiber -to -the -node architecture. Over 90,000 customers are expected to benefit from the upgrades in 1998. Minneapolis,MN In 1998, the systems serving Hopkins, Richfield and Edina, MN are scheduled to be upgraded to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 28,000 customers are scheduled to benefit from the upgrades in 1998. West Bakersfield, CA By the end of 1997, 95% of thesystem serving Bakersfield, CA was upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. In 1997, an additional 58,000 customers benefited from the upgrade. In addition, the upgrade of the system serving Tehachapi, CA was completed. The system was upgraded from 330 MHz to 750 MHz. Over 4,000 customers benefited from the upgrade. By the end of 1998, the system upgrade in Bakersfield is scheduled to be completed with an additional 6,000 customers converted to the new system. The upgrades of the systems in Avenal and Taft, CA are scheduled to be completed. The systems will be upgraded from 330 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 5,000 customers are 28 expected to benefit from the upgrades. Los Angeles, CA In 1997, the systems serving Fountain Valley, Orange, Rossmore, South Pasadena and Westminster, CA were completely upgraded from 360-400 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved. Over 60,000 customers benefited from the upgrades in 1997. In addition, the upgrade of the West Valley, CA system continued. This system is being upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. An additional 8,000 customers benefited from the upgrade in 1997. In 1998, the system upgrade in West Valley will continue with an additional 28,000 customers scheduled for conversion to the upgraded system. State of Hawaii In 1997, the system serving Oahu, HI was completely upgraded from 360 MHz to 750 MHz. In addition, over 85% of the system serving Kona, HI was upgraded from 330 MHz to 750 MHz. The upgraded systems utilize fiber -to -the - node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 20 to 7. An additional 28,000 customers benefited from the upgrades in 1997. 29 In 1998, the system upgrade in Kona is scheduled to be completed with an additional 3,000 customers converted.: to the new system. In addition, the upgrades of the Hilo and Lahaina, HI systems are scheduled to begin. The systems will be upgraded from 330-450 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 18,000 customers are expected to benefit from the upgrades in 1998. San Diego, CA In 1997, the system serving San Diego, CA was completely upgraded from 380 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability. The new architecture reduced the longest amplifier cascade from 40 to 6. An additional 43,000 customers benefited from the upgrade in 1997. Other In addition, the system serving Coronado, CA was completely upgraded to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability with a reduction in the longest amplifier cascade from 36 to 6. Over 7,500 customers benefited from the upgrade in 1997. In 1997, the systems serving Avalon, NJ, Clarksburg, WV, Fairmont, WV, Lake City, FL, Fort Benning, GA, Picayune, MS, Pt. Coupee, LA and Pryor, OK were 30 completely upgraded or were in the process of being upgraded to 550 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 47,000 customers benefited from the upgrades in 1997. In addition, the system serving Danville, IL was completely upgraded from 300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. An additional 3,000 customers benefited from the upgrade in 1997. In 1998, the upgrades of the systems in Clearfield, PA, Clewiston, FL, Dothan, AL, Madisonville, KY, Palatka, FL, Sheridan, WY, Colby, KS, Harrisonburg, VA and St. Louis, MO are scheduled to begin. The Dothan, Madisonville, Palatka, Sheridan and St. Louis systems will be upgraded to 750 MHz and the other systems will be upgraded to 550 MHz. Over 66,000 customers are expected to benefit from the upgrades in 1998. Conclusion Time Warner Cable is committed to meeting the requirements of the Social Contract as soon as possible by bringing state-of-the-art cable system technology to all of its customers. Time Warner 31 Cable's commitment is underscored by its accelerated investments. As described in this report, Time Warner Cable's investment activity spans all of its operating divisions and all types of franchises. Already, Time Warner Cable's upgraded systems are bringing new services, expanded choice and improved picture quality and service to millions of customers across the country. 32 Time Warner Cable Social Contract Progress Report 1998 Summary On November 30, 1995, the Federal Communications Commission ("FCC") approved Time Warner Cable's ("TWC") Social Contract. The FCC found that the Contract would advance the public interest by: (i) assuring fair and reasonable rates for TWC's cable service customers; (ii) facilitating the creation of a low-cost, lifeline basic service level; (iii) improving TWC's cable service by substantially upgrading the channel capacity and technical reliability of its cable systems; and (iv) reducing the administrative burden and cost of regulation for local governments, the FCC and TWC. In addition, TWC agreed to extend its public service commitment to education in four general areas: (i) providing one free service connection to every school passed by cable; (ii) offering a free monthly educational program listing to each connected school; (iii) producing and distributing training materials to facilitate teachers' use of cable's broadband services; and (iv) providing a high speed modem and on-line service to each connected school as that service is launched in TWC markets. During Time Warner Cable's third year of operation under the Social Contract, significant strides have been made toward meeting these goals. In 1995, the immediate benefit of the Social Contract was the resolution of over 900 rate complaints and approximately $4.7 million plus interest was refunded to customers. 1 In early 1996 and in accordance with the Social Contract, TWC lowered the rate on the basic service tier of affected systems to a level 10% below the rate which was current on the publication date of the Social Contract. In addition to creating the lifeline basic service, TWC has upgraded systems located in large urban, suburban and in small rural communities. The upgrades have had a dramatic positive impact on picture quality and system reliability and have increased the programming available to customers. Education Commitment Teacher Training Materials Training continues to be an important aspect of the company's education outreach and, with the continued launch of our high-speed Internet service, RoadRunner, that has expanded to include a greater emphasis on the Internet. More than 700 workshops were conducted for educators throughout TWC's service areas in the last year, many of which incorporated webTeacher, the 80 - hour, self -guided, on-line tutorial provided and funded by the cable industry, and TWC's "Teacher Training Tools" Resource Guide. In a partnership with an agency of the Ohio Department of Education, the Columbus Division developed and held a special training program for teachers on the use of cable -provided educational resources with additional sessions scheduled throughout 1999 and 2000. School Connectivity To date, TWC has provided cable connectivity to more than 11,000 schools in its service areas. Almost 800 now have broadband, high-speed connections to the Internet and the company's 2 RoadRunner service at no charge. And that number will increase as RoadRunner launches occur. Many divisions have gone beyond the baseline commitment and have worked with school technology specialists to design and deliver unique solutions in order to meet a school's individual needs. For instance, in El Paso, the TWC division provided additional RoadRunner connections to class buildings for hearing-impaired and special education students in the Yselta and El Paso Independent School Districts. Educational Program Listings TWC provides approximately 20,000 copies of the educational program listings at no charge each month to schools in its service areas through Cable in the Classroom magazine. The magazine includes a TWC-specific page which features teachers and classroom activities from those schools. High -Speed, On-line Service to Schools The deployment of RoadRunner to almost 800 schools has fostered some unique partnership opportunities between TWC Divisions and those schools. Two Divisions, San Diego, CA, and Portland, ME, have established a "Key Pals" program pairing two or three elementary classes in each community. Using RoadRunner access, students discuss similarities and differences about all aspects of their lives and their communities. The Portland, ME Division also established an "Explore and Learn About Maine" Website to enhance communication between students, teachers and parents via RoadRunner. It has evolved into an all-encompassing resource tool, containing information on the state's government, 3 geography/geology, recreation & tourism, education, famous residents and places of interest. And in Los Angeles, TWC is working with the Los Angeles Unified School District providing `.`state of the art" cable connectivity to all classrooms as they are constructed. This will enable those schools to have a smooth transition to the broadband, high-speed modem service when it is deployed in that area. In addition, all TWC Divisions in which RoadRunner has been launched are also offering a free modem and the service to public libraries in order to increase its accessibility by a broader portion of the community at large. Home Wiring Policy Under the Social Contract, TWC was required to provide subscribers with special rights to the wiring installed within their dwelling units prior to termination of cable service and to notify subscribers regarding such rights. TWC's model notice to subscribers was approved by the Cable Services Bureau on September 11, 1996 and TWC has subsequently provided notice to its subscribers regarding these special rights to home wiring in accordance with the Social Contract. Upgrade Requirement TWC is required to upgrade every cable system covered by the Social Contract to 550 MHz or 750 MHz within five years after the effective date of the Social Contract. At least 50% of all customers will be served by a system with a capacity of at least 750 MHz, of which at least 200 MHz is 4 expected to be allocated to digital distribution. Fiber -to -the -node architecture will be deployed to improve the signal quality and reliability of these systems. 1998 Plant Upgrades At the end of 1998, TWC's cumulative investment in upgrading and rebuilding its cable systems in compliance with the Social Contract was $2.9 billion. The investment has affected approximately 8.6 million customers who are being served by upgraded plant in franchises where upgrades were totally or partially completed. These customers already are benefiting from increased services and programming choice and enhanced system reliability and picture quality. In the following section, a description summarizing the activity which occurred in 1998 and the activity that is projected to occur in 1999 will be divided into the following categories: the five states where TWC has the largest number of subscribers (New York, North Carolina, Florida, Ohio and Texas) and the following regions where the remainder of our subscribers are located (East, South, Midwest and West). Since many of our cable systems cover more than one franchise area or community, all of the franchise areas impacted by the upgrade may not be listed in the summary. In addition, in those locations where the system only covers a portion of a franchise area, the summary may include only part of the franchise area described. The State of New York Albany During 1998, the system serving Pittsfield, MA was in the process of being upgraded to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. In 1999, the systems serving Pittsfield, MA and Glens Falls are scheduled to be completely upgraded from 450 MHz to 750 MHz and the system serving Troy is scheduled to be upgraded from 550 MHz to 750 MHz. The longest amplifier cascade will be reduced from 26 to 9. Over 53,000 customers are expected to benefit from the upgrades. Binghamton In 1998, the systems serving Newark Valley and Owego, NY were completely upgraded from 450 MHz to 750 MHz and the system serving Montrose was completely upgraded from 330 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability with a reduction in the amplifier cascade from 35 to 6. Over 4,700 customers benefited from the upgrades. In 1999, the system serving Walton, NY is scheduled to be completely upgraded from 330 MHz to 750 MHz and the system serving Whitney Point is scheduled to be completely upgraded from 450 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 2,800 customers are expected to benefit from the upgrades. Liberty In 1999, the system serving Newburgh is scheduled to be upgraded from 450 6 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 10,000 customers are expected to benefit from the upgrade. New York City In 1998, system upgrades continued in Manhattan, Queens and Brooklyn, NY. The systems are being upgraded from 550 MHz to at least 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability reducing the longest amplifier cascade from 29 to 3. Over 240,000 additional customers benefited from the upgrades in 1998. In 1999, the system upgrades in Manhattan, Queens and Brooklyn, NY are scheduled to continue with an additional 282,000 customers converted by the end of the year. Rochester In 1999, the system serving Honeoye, NY is scheduled to be upgraded from 300 MHz to 750 MHz and the system serving Batavia, NY is schedule to begin an upgrade from 450 MHz to 750 MHz. The upgraded systems will utilizes fiber -to - the -node architecture. Over 17,400 customers are expected to benefit from the upgrades in 1999. Staten Island In 1998, the system upgrade in Staten Island, NY continued. The system is being upgraded from 550 MHz to at least 750 MHz. The upgraded system utilizes fiber - 7 Syracuse to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 16 to 2. Over 51,000 customers benefited from the upgrade in -1998. In 1999, the system upgrade in Staten Island, NY is scheduled to continue with an additional 36,000 customers converted to the new system by the end of the year. In 1998, the systems serving Harrisville, Ilion and Ithaca, NY were upgraded from 450 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved. Over 42,000 customers benefited from the upgrades. In 1999, the systems serving portions of Syracuse, Fulton, Rome and Carthage, NY are scheduled to be upgraded to 750 MHz. In addition, the Potsdam and Chaumont, NY systems are scheduled to be upgraded to 550 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 42,900 customers are expected to benefit from the upgrades. The State of North Carolina Charlotte In 1998, the upgrades of the systems serving Belmont, Gaston County, Shelby and Monroe, NC began and the upgrade of the system serving Metrolina was 8 completed. The systems are being upgraded from 330 MHz to 750 MHz in Belmont, Gaston County and Monroe and from 450 MHz to 550 MHz in Shelby and Metrolina. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 48 to 6. Over 84,500 customers benefited from the upgrades. In 1999,. the upgrades of the systems serving Belmont, Gaston County, Shelby and Monroe, NC are scheduled to be completed. An additional 23,700 customers are expected to benefit from the upgrades. Greensboro In 1998, the systems serving Asheboro and Thom -a -lex, NC were completely upgraded from 300-330 MHz to 750 MHz and the 750 MHz upgrade of the system serving Guilford County began. The upgraded systems utilize fiber -to - the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 43,500 customers benefited from the upgrades in 1998. In 1999, the upgrades of the systems serving Guilford County and Winston- Salem, NC will continue. The systems will be upgraded from 400 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture to improve signal quality and system reliability. Over 56,000 customers are 9 expected to benefit from the upgrades in 1999. Raleigh In 1998, the systems serving Fayetteville and Chapel Hill, NC were completely upgraded from 300-330 MHz to 750 MHz and the system in Farmville was upgraded from 300 MHz to 550 MHz. The systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved. An additional 72,600 customers benefited from the upgrades in 1998. In addition, upgrades are in progress in Raleigh and Goldsboro, NC. These systems are being upgraded from 300-450 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved. Over 73,200 customers benefited from the upgrades in 1998. In 1999, the system upgrades in Raleigh and Goldsboro, NC will continue with an additional 46,800 customers scheduled for conversion to the upgraded system by the end of the year. In addition, the upgrades of the systems serving Lumberton, Red Springs and Cary, NC are scheduled to begin. The systems will be upgraded from 270-450 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 58,000 customers are expected to benefit from the upgrades in 1999. 10 Wilmington In 1998, the 750 MHz upgrade of the system serving Wilmington, NC was completed. In addition, the system serving Elizabethtown, NC was upgraded from 330 MHz to 550 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 5,800 customers benefited from the upgrades in 1998. In 1999, the upgrades of the systems serving Newport and Jacksonville, NC are scheduled to begin. The systems will be upgraded from 350-450 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 36,000 customers are expected to benefit from the upgrades. The State of Florida Orlando In 1998, the 750 MHz upgrades of the systems serving Orlando, Marion, Sumter and Melbourne, FL were completed. The upgraded systems utilize fiber -to -the - node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 30 to 7. In 1998, over 38,000 additional customers benefited from the upgrades. In 1998, the upgrade of the system serving Evans, FL began. The system is being upgraded from 450 MHz to 750 MHz. The upgrade utilizes fiber -to -the - node architecture. Both picture quality and system reliability were improved 11 with a reduction in the longest amplifier cascade from 30 to 7. Over 10,700 customers benefited from the upgrade. In 1999, the system upgrade in Evans, FL is scheduled to be completed. An additional 21,000 customers are expected to benefit from the upgrade. In addition, the system upgrades in Deland and Winter Garden, FL are scheduled to begin. The systems will be upgraded from 400-450 MHz to 750 MHz. The upgraded systems will utilizes fiber -to -the -node architecture. Over 86,000 customers are expected to benefit from the upgrades in 1999. Tampa Bay In 1998, the 750 MHz upgrades of the systems serving Tampa and St. Petersburg, FL were completed. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade to 6. Over 77,500 additional customers benefited from the upgrades in 1998. In 1998, the upgrades of the systems serving Apollo Beach, Hernando County and Winterhaven, FL began and the system upgrade in Hillsborough County continued. The systems were upgraded from 300-400 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability. Over 49,200 customers benefited from the upgrades. 12 In 1999, the system upgrades in Apollo Beach, Hernando County, Hillsborough County and Winterhaven are scheduled to continue and the system upgrades in Citrus County, Lakeland and Manatee County are scheduled to begin. The systems in Citrus County, Lakeland and Manatee County will be upgraded from 330-450 MHz to 750 MHz. Over 190,000 customers are expected to benefit from the upgrades. The State of Ohio Cincinnati Columbus In 1998, the 750 MHz upgrade of the system serving the Cincinnati, Ohio metropolitan area was completed. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability with a reduction in the longest amplifier cascade from 40 to 12. An additional 45,800 customers benefited from the upgrade in 1998. In addition, the system serving Green Township, OH was completely upgraded from 550 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. Over 17,800 customers benefited from the upgrade. In 1998, the 750 MHz upgrade of the system serving the Columbus, Ohio metropolitan area was completed. The upgraded system utilizes fiber -to -the -node architecture which reduces the amplifier cascade, improves picture quality and system reliability. In 1998, an additional 31,000 customers benefited from the upgrade. 13 Akron/Canton/ In 1998, the 550/750 MHz upgrade of the system serving Lodi, OH continued. Youngstown/ The upgraded system utilizes fiber -rich architecture. The upgrade vastly Mansfield improved picture quality and system reliability and increased the programming available to customers. Over 12,700 customers benefited from the upgrade in 1998. In 1999, the system upgrade in Lodi, OH is scheduled to be completed with an additional 2,000 customers converted to the upgraded system by the end of the year. In addition, the system in Greenville, PA and the systems in Mansfield and Shelby, OH are scheduled to be upgraded from 330-450 MHz to 750 MHz. Over 25,500 customers are expected to benefit from the upgrades. Western, OH In 1998, the upgrades of the systems serving Piqua, Wapakoneta, Kenton, Richwood, Lynchburg and West Union, OH were completed. The systems were upgraded from 300-450 MHz to 750 MHz in Piqua, Wapakoneta, Kenton and Richwood and from 300 MHz to 550 MHz in Lynchburg and West Union. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability by reducing the longest amplifier cascade to less than 7. Over 18,900 customers benefited from the upgrades. In addition, the system upgrades in Marysville, Lima and St. Paris, OH began. 14 The systems are being upgraded from 300-450 MHz to 750 MHz. The upgraded systems utilizes fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increasedthe programming available to customers. Over 11,600 customers benefited from the upgrades in 1998. In 1999, the system upgrades in Lima and Marysville are scheduled to be completed with an additional 26,400 customers expected to benefit from the continuing upgrades. In addition, the system upgrades in Union City, Seaman, Springfield, Jefferson Township, Germantown, Goshen, Leesburg, Lucasville, Centerburg, Danville, Gambier, Mt.Vernon, Utica and Delphos, OH are scheduled to be completed. The systems will be upgraded from 300-450 MHz to 750 MHz in Centerburg, Danville, Gambier, Mt. Vernon, Utica, Union City, Springfield, Jefferson Township, Germantown and Delphos and from 300 MHz to 550 MHz in Seaman, Goshen, Leesburg and Lucasville. The upgraded systems will utilize fiber -to -the -node architecture. Over 20,000 customers are expected to benefit from the upgrades in 1999. The State of Texas Austin In 1998, the 750 MHz upgrade of the system serving Austin, TX was completed. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. An additional 105,000 customers benefited from the 15 Houston upgrade in 1998. In 1999, the 750 MHz system upgrade in Smithville, TX is scheduled to be completed. Over 3,000 customers are expected to benefit from the upgrade in 1999. In 1998, the 750 MHz upgrade of the system serving Houston, TX was completed. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. An additional 17,000 customers benefited from the upgrade in 1998. In addition to Houston, several communities near Houston including Bellaire, Brazoria County, Harris County and The Meadows, TX were completely upgraded. The systems were upgraded from 360-400 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved. Over 11,200 customers benefited from the upgrades in 1998. San Antonio By the end of 1998, approximately 82% of the system serving San Antonio, TX and the surrounding communities was upgraded from 360 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. Both picture quality 16 and system reliability were improved with a reduction in the longest amplifier cascade from 25 to 7. Over 73,400 customers benefited from the upgrade in 1998. In 1999, the system upgrade in the City of San Antonio and several surrounding communities including Bulverde, Kelly AFB, Lackland AFB and Elmendorf is scheduled to be completed. An additional 57,000 customers are expected to benefit from the continuing upgrade. Southwest In 1998, the systems serving Lewisville and Grapevine were upgraded from 450 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 25,800 customers benefited from upgrades in 1998. In 1999, the remaining Dallas Metro systems, Irving and Coppell, TX, are scheduled to be upgraded. In addition to the Dallas Metro systems, several communities near Dallas, including Palastine, Elkhart, Greenville, Commerce and Copper, TX are scheduled to be upgraded. All of the systems will be upgraded from 330-425 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 73,000 customers .are expected to benefit from the upgrades. 17 Waco East Altoona, PA In 1999, the system upgrades in Waco and Killeen are scheduled to begin. The systems will be upgraded from 550 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 68,500 customers are expected to benefit from the upgrades in 1999.. In 1999, the system upgrade in Altoona, PA is scheduled to begin. The system will be upgraded from 450 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 42,100 customers are expected to benefit from the upgrade in 1999. Boston, MA By the end of 1998, the 750 MHz upgrade of the system serving Malden, MA and the surrounding areas (Salem, Medford, Swampscott, Lynn, Somerville, Chelsea and Everett) and the system serving Nashua, NH was completed. In addition, the upgrade of the system in Foxboro, MA from 450 MHz to 750 MHz continued. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. An additional 53,000 customers benefited from the upgrades in 1998. In 1999, the upgrade of the system serving Foxboro is scheduled to continue. An 18 Reading, PA Portland, ME additional 30,000 customers are expected to benefit from the continuing upgrade. In 1998, the upgrade of the system serving Reading, PA began. The system is being upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber - to -the -node architecture. The upgrade vastly improved picture quality and system reliability. Over 16,300 customers benefited from the upgrade in 1998. In 1999, the system upgrade in Reading, PA is scheduled to be completed. An additional 7,500 customers are expected to benefit from the upgrade in 1999. • In 1999, the system upgrade in Caribou, ME is scheduled to be completed. The system will be upgraded from 400 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Over 8,000 customers are expected to benefit from the upgrade. 19 South Birmingham, AL Charleston, WV Columbia, SC In 1998, the system upgrade in Birmingham, AL began. The system is being upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 15 to 5. Over 40,000 customers benefited from the upgrade in 1998. In 1999, the system upgrade in Birmingham, AL is scheduled to be completed. An additional 37,000 customers are expected to benefit from the upgrade in 1999. In 1998, the system upgrade in Charleston, WV began. The system is being upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. Both picture quality and system reliability were improved. Over 21,000 customers benefited from the upgrade in 1998. In 1999, the system upgrade in Charleston, WV is scheduled to be completed. An additional 11,300 customers are expected to benefit from the upgrade in 1999. By the end of 1998, over 84% of the system serving the Columbia, SC area was upgraded from 330-550 MHz to 750 MHz. In addition to Columbia, the systems serving Andrews, Georgetown and Myrtle Beach, SC were completely upgraded from 330-450 MHz to 750 MHz. The upgraded systems utilizes a fiber -rich 20 architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 92,700 customers benefited from the upgrades in 1998. In 1999, the system upgrade in Columbia, SC is scheduled to be completed. In addition, the system upgrades in Orangeburg, Florence and St. Matthews are scheduled to begin. The systems will be upgraded from 300-450 MHz to 750 MHz. Over 40,000 customers are expected to benefit from the upgrades in 1999. Jackson, MS By the end of 1998, all of the suburban and small municipalities around Jackson, MS, a portion of the City of Jackson and a portion of Monroe, LA were upgraded from 330 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture to improve picture quality and system reliability. Over 43,000 customers benefited from the upgrades. In 1999, the system upgrades in Jackson, MS and Monroe, LA are scheduled to be completed. An additional 67,000 customers are expected to benefit from the upgrades in 1999. Kansas City,MO By the end of 1998, over 95% of the system serving Kansas City, MO, Kansas City, KS and neighboring communities was upgraded from 270-300 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. The upgrade 21 vastly improved picture quality and system reliability and increased the programming available to customers. The upgrade reduced the longest amplifier cascade from 36 to 5. An additional 39,000 customers benefitedfromthe upgrade in 1998. In 1999, the system upgrade in Kansas City is scheduled to be completed with an additional 24,000 customers scheduled for conversion to the upgraded system. Marietta, GA In 1998, the system upgrade in Marietta began. The system is being upgraded from 400 MHz to 750 MHz. The upgraded system utilize fiber -to -the -node architecture in order to improve signal quality and system reliability. Over 20,000 customers benefited from the upgrade. In 1999, the system upgrade in Marietta is scheduled to continue. An additional 30,000 customers are expected to benefit from the continuing upgrade in 1999. Memphis, TN In 1998, the systems serving West Memphis, AR and Hernando, MS were upgraded from 300 MHz to 750 MHz. The upgraded systems utilize fiber -to -the - node architecture in order to improve signal quality and system reliability. Over 10,500 customers benefited from the upgrades in 1998. In 1999, the system upgrades in Tunica, Senatobia, Sardis and Sledge/Crenshaw, 22 MS are scheduled to begin. The systems will be upgraded from 300 MHz to 750 MHz except Sardis which will be upgraded to 550 MHz. Over 4,000 customers are expected to benefit from the upgrades in 19.99. Shreveport, LA In 1998, the system upgrade in Shreveport, LA began. The system is being upgraded from 380 MHz to 750 MHz. The upgraded system utilizes fiber -to -the - node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 12 to 3. Over 11,200 customers benefited from the upgrade in 1998. In 1999, the system upgrade in Shreveport, LA is scheduled to be completed. An additional 49,700 customers are expected to benefit from the upgrade in 1999. Midwest Green Bay, WI In 1998, the 750 MHz upgrade of the system serving Appleton, WI was 75% complete. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. Over 59,800 customers benefited from the upgrade. In 1999, the upgrade of the system serving Appleton is scheduled to continue and the upgrade of the system in Depere, WI is scheduled to begin. The system in 23 Depere will be upgraded from 300 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture to improve picture quality and increase system reliability. Over 42,500 customers are expected to benefit.. from the upgrades in 1999. Indianapolis, IN In 1998, the 750 MHz upgrade of the system serving Indianapolis, IN was completed. The upgraded system utilizes fiber -to -the -node architecture. The upgrade vastly improved picture quality and system reliability and increased the programming available to customers. The upgrade reduced the longest amplifier cascade from 32 to 7. Over 45,800 customers benefited from the upgrade in 1998. In addition, the upgrades of the systems serving Carmel and Marion, IN were completed. The Carmel system was upgraded from 450 MHz to 750 MHz and the Marion system was upgraded from 450 MHz to 600 MHz. The upgraded systems utilize fiber -to -the -node architecture to improve picture quality and system reliability. Over 32,200 customers benefited from the upgrades. Lincoln, NE In 1998, the 550 MHz upgrades of the systems serving Crete, Fremont and Seward, NE were completed. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. The upgrades reduced the longest amplifier cascade from 26 to 7. Over 10,800 customers benefited 24 from the upgrades in 1998. In 1999, the upgrades of the systems serving.. Columbus,.. Lincoln,Falls City, Fairbury and Superior, NE are scheduled to begin. The systems serving Columbus and Lincoln will be upgraded from 400-550 MHz to 750 MHzand the systems serving Falls City, Fairbury and Superior will be upgraded from 300-330 MHz to 550 MHz. Over 34,800 customers are expected to benefit from the upgrades in 1999. Milwaukee, WI In 1998, the systems serving Greenfield, Kenosha, Mequon and Muskego were completely upgraded from 400 MHz to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 30 to 6. In addition, the upgrades of the systems serving Burlington and Milwaukee began. The systems are being upgraded from 300-473 MHz to 750 MHz. Over 114,400 customers benefited from the upgrades in 1998. In 1999, the system upgrade in Milwaukee will continue and the system upgrades in New Berlin, North Prairie, Oconomowoc and Paddock Lake will begin. The systems will be upgraded from 330-400 MHz to 750 MHz. The upgraded systems will utilize fiber -to -the -node architecture. Over 78,000 customers are expected to benefit from the upgrades in 1999. 25 Minneapolis, MN West Bakersfield, CA In 1998, the systems serving Hopkins and Richfield, MN were completely upgraded from 400 MHz to 750 MHz. In addition, the upgrade of the system serving Edina, MN began. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade from 20 to 6. Over 20,400 customers benefited from the upgrades in 1998. In 1999, the system upgrade in Edina is scheduled to be completed and the upgrades in Eden Prairie, Minnetonka, Bloomington and Shakopee, MN will begin. The systems will be upgraded from 450 MHz to 750 MHz. In addition, the system serving New Prague, MN is scheduled to be upgraded from 330 MHz to 550 MHz. The upgraded systems will utilize fiber -rich architecture. Over 73,500 customers are expected to benefit from the upgrades in 1999. In 1998, the 750 MHz upgrades of the systems serving Bakersfield, Avenol and Taft, CA were completed. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. In 1998, an additional 9,900 customers benefited from the upgrades. Los Angeles, CA In 1998, the upgrade of the system serving West Valley, CA continued. The 26 system is being upgraded from 450 MHz to 750 MHz. The upgraded system utilizes fiber -to -the -node architecture. Both picture quality and system reliability were improved with a reduction in the longest amplifier cascade Srom.1.8 to 4. Over 38,800 customers benefited from the upgrade in 1998. In 1999, the system upgrade in West Valley will continue with an additional 21,500 customers scheduled for conversion to the upgraded system. In addition, the upgrades of the systems serving Canyon Country, Cypress and South Bay are scheduled to begin. The systems will be upgraded from 450-500 MHz to 750 MHz. Over 29,200 customers are expected to benefit from the upgrades in 1999. State of Hawaii In 1998, the 750 MHz upgrades of the systems serving Kona and Lahaina, HI were completed. In addition, the 750 MHz upgrade of the system serving Hilo, HI began. The upgraded systems utilize fiber -to -the -node architecture. Both picture quality and system reliability were improved. Over 18,600 customers benefited from the upgrades in 1998. In 1999, the system upgrade in Hilo is scheduled to be completed with an additional 14,800 customers converted to the new system. Portland, OR In 1999, the upgrade of the system serving Portland, OR is scheduled to begin. The system will be upgraded from 420 MHz to 750 MHz. The upgraded system 27 will utilize fiber -to -the -node architecture. Over 60,000 customers are expected to benefit from the upgrade in 1999. San Diego, CA In 1999, the upgrade of the system serving Palm Springs, CA is scheduled to begin. The system will be upgraded from 450 MHz to 750 MHz. The upgraded system will utilize fiber -to -the -node architecture. Other In 1998, the systems serving Lake City, FL, Independence, KS, Neodesha, KS and Avalon, NJ were completely upgraded to 550 MHz. The systems serving Dothan, AL, Keystone, FL, Riverlands, LA, Johnstown, PA, Murray, KY, Mayfield, KY and Sheridan, WY were completely upgraded to 750 MHz. The upgraded systems utilize fiber -to -the -node architecture. The upgrades vastly improved picture quality and system reliability and increased the programming available to customers. Over 68,900 customers benefited from the upgrades in 1998. In 1999, the upgrades of the systems in Chanute, KS, Cape Coral, FL, Elmore, AL, Emporia, KS, Labelle, FL, Parsons, KS, St. Louis, MO, Kennett, MO, Colby, KS, Oakley, KS, DeKalb, IL, Rochelle, IL Philadelphia, PA, Cheylan, WV, Warren, PA and Keene, NH are scheduled to begin. The Cape Coral, Labelle, Elmore, St. Louis, DeKalb, Rochelle, Cheylan and Philadelphia systems will be upgraded to 750 MHz and the other systems will be upgraded to 550 28 MHz. Over 125,000 customers are expected to benefit from the upgrades in 1999. Conclusion Time Warner Cable is committed to meeting the requirements of the Social Contract as soon as possible by bringing state-of-the-art cable system technology to all of its customers. Time Warner Cable's commitment is underscored by its accelerated investments. As described in this report, Time Warner Cable's investment activity spans all of its operating divisions and all types of franchises. Already, Time Warner Cable's upgraded systems are bringing new services, expanded choice and improved picture quality and service to millions of customers across the country. 29 CITY OF ITHACA 108 East Green Street Ithaca, New York 14850-5690 OFFICE OF THE CITY ATTORNEY Marlette Geldenhuys, City Attorney Telephone 607/274-6504 Patricia M. Kennedy, Assistant City Attorney Fax: 607/274-6507 MEMORANDUM TO: Members of Common Council Alan J. Cohen, Mayor FROM: Mariette Geldenhuys RE: Conflict of interest question: TCAT Board DATE: April 9, 1998 Sara Shenk requested a legal opinion on the question whether Dwight Richardson is disqualified from serving on the TCAT Board by reason of a conflict of interest. This question was raised because Mr. Richardson is a trustee of the UAW (which represents a group of TCAT employees), and is an employee of Gadabout. This question is analyzed taking into consideration the provisions of the TCAT agreement and the provisions of the General Municipal Law regarding conflicts of interest. TCAT Agreement The TCAT agreement provides that individuals who are employees or agents of TCAT or who are related to an employee, officer or agent of TCAT cannot serve as a voting member of the TCAT Board. Mr_ Richardson is not an employee of TCAT, so the question remains whether he is an agent of TCAT in his capacity as an employee of Gadabout. Gadabout has contracts with the City of Ithaca and Tompkins County (two of the parties to the TCAT agreement) to provide paratransit services to passengers in Tompkins County. The City and the County provide funding for Gadabout. The contractual relationshipbetween the two entities does not mean that Mr. Richardson, in his individual capacity, is an "agent" of TCAT. An agent would be an individual who is empowered to act on behalf of, and entered into agreements that are binding on, TCAT. Therefore, the TCAT agreement does not preclude Mr. Richardson from serving on the Board. Article 18 of the General Municipal Law Municipal officers, including a members of boards and commissions, may not have an interest in a contract with a municipality where the officer has the power or duty to negotiate, prepare, authorize 1 ti or approve the contract. GML secton 801. "Interest" is defined as " ... a direct or indirect pecuniary or material benefit accruing to a municipal officer or employee as the result of a contract with the municipality which such officer or employee serves." GML section 800(3). General Municipal Law section 800(2)(b) provides that an employee of an entity which has a contract with a municipality will not have a conflict of interest if the employee's remuneration will not be directly affected by the contract. Mr. Richardson will have a conflict of interest pertaining to contracts entered into between TCAT or is member entities (the City. County and Cornell) and Gadabout. The exception of GML section 800(2)(b) will not apply, because the contracts, and funding provided in the contracts, will affect all Gadabout employees' remuneration. For this reason, if he serves on the TCAT Board, he should disclose this conflict of interest and recuse himself from any discussions or votes pertaining to contracts between TCAT or its member entities and Gadabout. With regard to his position as a trustee of the UAW, Mr. Richardson, as a volunteer trustee, would not stand to benefit from the terms of a labor agreement between TCAT and the UAW, and therefore does not have an "interest" in such contract as the term is defined in the General Municipal Law. the exception of GML section 800(2)(b) would also be applicable, because he does not receive remuneration from the UAW. However, given the fact that Mr. Richardson in his capacity of trustee of the UAW serves on its executive body, which may be involved in aspects of contract negotiations, it would be advisable for him to recuse himself from discussions and votes regarding labor agreements between TCAT and the UAW. Conclusion Mr. Richardson is not precluded from serving on the TCAT Board. However, he should recuse himself from discussions and votes on contracts between TCAT (or its member entities), Gadabout and the UAW by reason of his employment at Gadabout and his position as trustee of the UAW. 2