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HomeMy WebLinkAboutAmerican Cable Communication Information I NO CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF TELEPHONE: (607)274-6504 CITY ATTORNEY MEMORANDUM FAX: (607)272-7348 TO: Dominick Cafferillo, Controller FROM: Chuck Guttman, City Attorney DATE: January 6, 1994 RE: ACC/Time Warner Enclosed please find a check payable to the City of Ithaca from Time Warner Cable in the amount of $21, 377.99. Also enclosed please find a memo from Time Warner Cable to the City explaining how they have calculated this amount. You will note that this covers the payments for the period of January 1992 through June 1993 . This is for a one and one half year period of time, therefore, represents $14, 250. 00 per year. I had previously estimated that Time Warner would owe the City for 1992 and 1993 a total sum of $29, 000. 00. This amount therefore, is consistent with my expectations. Particularly since the second half of 1993 should be slightly more than the previous period of time. I am also enclosing a copy of a letter from ACC to Cookie dated November 22 . At that time, they enclosed a check for payment of the franchise fee for the third quarter and stated that the revenues used in the computation included advertising revenue and franchise fees collected during the third quarter as agreed in the settlement. If you need any further information regarding this, of course, let me know. 'An Equal Opportunity Employer with an Affirmative Action Program" Recycled Paper National Division T I M E W A R N E R C A B L E November 19, 1993 City of Ithaca Ithaca, New York Dir Sir or Madam: Enclosed please find a check for $21,377 .99 which is payment of franchise fees on advertising and franchise fee revenue, made in accordance with the Memoradum of Understanding, dated October, 1993 between the City of Ithaca and American Community Cablevision. This This payment is for the period January, 1992 through June, 1993. Computation is as follows: Advertising Rate less Period Revenue NYCC Total ------- ------- ------- ------- January- March 1992 32, 128.34 4.723% 1,517.42 April-December 1992 136,801.04 4.786% 6,547.29 January- March 1993 38,591.63 4.786% 1,847.00 April-June 1993 49,770.85 4.781% 2,379.54 -------------- Franchise Fee Due on Advertising 12,291 .25 Itemized Rate less Period Franchise Fees NYCC Total ------- -------------- ------- ------- January- March 1992 31, 652.73 4.723% 1,494.96 April-December 1992 94,416.52 4.786% 4,518.77 January- March 1993 32,298.36 4.786% 1,545.80 April-June 1993 31,943.24 4.781% 1,527.21 -------------- Franchise Fee Due on Franchise Fees 9,086.74 ------------ Total Franchise Fee Due on Advertising & Fees on Fees $21,377 .99 I , Ivy W. Parish, Controller of Time Warner Cable, National Division, certify that the above schedule summarizes the Gross Revenue, as defined in the memorandum of understanding dated October, 1993, for the period indicated for the CATV operations in the City of Ithaca, New York. Signed: ('v• 6, Ivy Parish, Controller Enclosure National Division 160 Inverness Drive West Suite 300 Englewood CO 80112 Tel 303.799.9599 Fax 303.649.8090/303.799.1744 Mailing Address: P.O.Box 6929 Englewood CO 80155-6929 A Division of Time Warner Entertainment Company,L.P. ACC AMERICAN COMMUNITY CASLEVISION November 22, 1993 Ms. Callista Paolangeli, Clerk City of Ithaca City Hall 108 E. Green Street Ithaca, NY 14850 Dear Ms. Paolangeli: Enclosed is a check in payment of American Community Cablevision's franchise fee for the third quarter of 1993 . The revenues used in the computation include advertising revenue and franchise fees collected during the third quarter as agreed in the settlement between the City of Ithaca and American Community Cablevision. Should you have any questions, please feel free to call. American Community Cablevision takes great pride in serving the residents of the City of Ithaca. i erely, Raymm nd H. McCabe Area Manager cc: The Honorable Benjamin Nichols Mr. James Ferwerda, Chair of the Cable Commission enc. RHM/mkk 519 West State Street Ithaca, New York 14850 607-272-3456 ' 11'uriurud llirisiun - � 1> T I M E W A R N E R C A B L E November 19. 1993 City of Ithaca Ithaca, New York Dear Sir: ZZNY 0040 Enclosed please find a check for $ 37,491.01 which is payment of franchise fees for the third quarter of 1993 for American Community Cablevision. At this point, we have not deducted the overpayments for the prior periods. However, in the future, we reserve the right to reduce franchise fee payments by the amount overpaid. Computation is as follows: Taxable Gross Revenues $784, 166.73 Franchise Fee Rate Less NYCC 4.781% --------------- Franchise Fee Due $37,491.01 --------------- --------------- I , Ivy W. Parish, Controller of Time Warner Cable, National Division, certify that the above schedule summarizes the Gross Revenues, as defined in the franchising agreement, for the period indicated for the CATV operations in the City of Ithaca, New York_ Signed: .W• /` ^& Ify W. Parish, Controller IWP/lmf Enclosure National Dirisirm 160►nrerness 11rire tfi-st Suile 300 Eri.-,lr•,rood CO 130112 7�4303.799.9599 Fns 303.619J,090i3t13.799.1_i 11oiling Address: 1t0. Kos 6929 Errg-lrncood CO 8015.7-6929 i /!iri.sian 1?/77nr P .nn•. 1..!'. Invoice Number Date Voucher Gross Amount Discount Net Amount RETURN CH '-C;( TO V ICT R X389 FF373"1 111993 550,737 ?1077.99 21077.99 I 1 S i { Check Number Date Vendor Number Vendor Name Total Amount -S- 9a7314 * Ott': + I 1 21 377.99 987314 Time Warner Cable,A Division of Time Warner Entertainment Company,L.P. TWC Denver, 160 Inverness Drive West,P.O.Box 6659,Englewood,CO 80155-6659,303-799-1200 Check Number 997314 TWC NATIONAL DIV 303/799-9599 �WENTV `-HaIIs " NRtt HUN Rtti) # I 1 1 93 21077.9`9 5 ii EVETR NOT VAlit1 AFTER -:. - 180 DAYS CITE'- 0 to the Order of t= NY,. 1485E Mellon Bank N Ax Pittsburgh,PA64-160 TWO SIGNATURES REQUIRED OVER 315,000 OD _...433 . 11191373 Lt.lie 1:04 3 30 160 11: LIB S111 106911 THE J NEW YORK STATE COMMISSION ON CABLE TELEVISION r 1a In the Matter of 94-040 Amendment of Part 590, Section 595.5 and ) Docket No. 90456 Section 596.8 of the Commission's Rules ) relative to consumer protection and customer ) service standards ) NOTICE OF PROPOSED RULEMAKING (Released: January 14, 1994) On April 7, 1993,the Federal Communications Commission ("FCC") released a Report and Order in MM Docket No. 92-263 whereby it promulgated regulations establishing cable television customer service requirements in fulfillment of Section 552(b) of the Communications Act, as amended by the Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"). The regulations as set forth in 47 C.F.R. Section 76.309 pertain to (1) cable system office hours and telephone availability; (2) installations, outages and service calls; and (3) communications between the cable operator and the subscriber(including standards governing bills and refunds). The standards applied to all cable operators as of July 1, 1993 but the matter of enforcement was reserved for state and local franchising authorities. Specifically, Section 76.309(a) provides that "a cable franchise authority may enforce the [federal] customer service standards. . .[but]. . .must provide affected cable operators ninety (90) days written notice of its intent to enforce the standards." On May 27, 1993, the Commission released an Order and Notice pursuant to Section 76.309(a). (Order Adopting Federal Customer Service Standards with Modification and Notice of Enforcement, Docket No. 90445, Order No. 93-182, released May 27, 1993.) That order, which adopted most, if not all, of the federal customer service standards not at variance with state standards and provided some exemptions for small cable companies,was served by certified mail on all companies in the state with the effect that on or about September 1, 1993, the adopted federal standards were enforceable in accordance with Sections 824, 827 and 827-a of the Executive Law and Section 590.5 of the Commission's rules. We have since determined that the public interest would be best served by incorporating the non-conflicting federal customer service standards into existing Commission rules applicable to billing practices and other customer service matters. At the same time, the proposed rule would amend certain existing Commission standards independent of the requirements of federal standards. Finally, the proposed rule constitutes a reorganization of existing Commission rules in order to facilitate the identification of, and reference to, customer service standards applicable throughout the state. 2 The most substantial effect of the new federal standards on the proposed rule involves telephone availability. The federal rules contain comprehensive standards for telephone answer time,transfer time and busy signals. The Commission has not had specific standards in this area in the past. The proposed rule essentially mirrors the federal standards and requires quarterly reporting by cable companies to permit the Commission to monitor compliance with the standards. (§§ 590.90-590.92) The federal standards also include subscriber notice requirements in addition to those contained in existing state statute and Commission rule as well as provisions establishing the time for the issuance of credits and refunds to subscribers. These standards are embodied in the proposed rule. (§ 590.80(a); § 590.64(g)(h)) The proposed rule would amend existing Commission standards in at least five areas. First, the proposed rule would amend existing rules to require cable companies to identify more clearly on subscriber bills the Commission's toll-free subscriber complaint number. (§590.63(a)(1)) Second, the proposed rule would require cable companies to give notice of any predicted service outage. (§590.65(f)) Third, the proposed rule would change the requirement for automatic credits for service-outages to include such outages as occur during some portion of extended prime-time hours -- from 6:00 p.m. to 12:00 a.m. (§ 590.65(b)) Fourth, the rules would permit cable companies to commence collection of charges for lost or stolen equipment at an earlier date. (§ 590.64(f)) Fifth, the rules would reconcile existing state standards relative to downgrade charges to federal statutory and regulatory changes. (§ 590.63(g)) Finally, the proposed rule constitutes a reorganization of the Commission's customer service standards into a more manageable and convenient structure. Specifically, customer service rules would be reorganized into four categories: (1) billing practices and requirements -- Sections 590.60 through 590.66; (2) complaint procedures - Section 590.70 (formerly Section 590.5);(3)notices to subscribers-Section 590.80(formerly Sections 590.69 and 590.74); and (4) telephone availability and service requirements - Sections 590.90 through 590.92). Provisions unrelated to customer service standards which are now interspersed with consumer protection standards would be relocated. The proposed rule is attached hereto. The Commission invites comments from interested parties on the proposed rule. Comments in this proceeding should be submitted no later than March 15, 1994. All written comments should be submitted to William Huff, Administrative Officer, NYS Commission on Cable Television, Empire State Plaza, Corning Tower, 21st Floor, Albany, New York 12223. THE COMMISSION ORDERS: That the proposed rule, regulatory impact statement and regulatory flexibility analysis be submitted to the Secretary of State for publication and to other appropriate officials in accord with the State Administrative Procedure Act and the Executive Law. Commissioners Participating: William B. Finneran, Chairman; Gerard D. DiMarco, John A. Passidomo, Barbara T. Rochman, David F. Wilber, III, Commissioners. TEXT OF PROPOSED RULE [590.5 Subscribers' Complaints; Procedure] (NOTE: § 590.5 to be reserved and substance transferred to §§ 590.70 and 590.80(f) ) [BILLING PRACTICES ,OF CABLE TELEVISION COMPANIES] CUSTOMER SERVICE AND CONSUMER PROTECTION STANDARDS 590.60 Applicability. Every cable television company shall comply with the [practices] customer service standards set forth in this Part [120 days from effective date] . [These regulations provide for minimum billing practices, procedures and standards. Nothing contained herein shall prevent local governments from adopting more restrictive billing practices or procedures. ] Additional standards not inconsistent with federal or state law may be established by municipal franchising authorities. 590.61 Definitions. (b) [A b]Billing dispute shall mean a disagreement between a subscriber and cable television company concerning: (1) credits for payments made by the subscriber to the cable television company; (2) credit or refund for service outage; (3) errors in billing amount; or (4) assessment of late charges. lc1 Home wiring shall mean the internal wiring contained within premises of a subscriber which does not include any active elements such as amplifiers, converters or decoder boxes or remote control units. ,jd)_ Cable television system shall have the meaning as defined in Section 596. 1(c) of this subtitle. [ (c) ] _fie.)_ Collection charge shall mean a fee or charge imposed upon a subscriber by a cable television company for its efforts at collecting or attempting to collect a past due account by personal visit at a subscriber's home or place of business. [ (d) ] (f) Commission shall mean the New York State Commission on Cable Television. [ (e) ] -Lhl Late charge shall mean a charge which is added to a cable television subscriber's account or bill for nonpayment of a previously due account. [ (f) ] W Local office shall mean the business office of the cable television company serving the municipality in which a billing dispute 2 arises. [ (g) ] _[nj Service outage shall mean a loss of picture or sound on all basic subscriber channels or on all channels provided on any other service tier or on one or more [auxiliary programming] premium channels which is not caused by the subscriber's television receiver or the subscriber. [ (h) ] _LqJL Downgrade charge shall mean a charge imposed upon a subscriber for implementing a request by the subscriber for a change in service to a less expensive tier than the tier currently subscribed to. (j) Normal business hours shall mean those hours during which most similar businesses in the community are open to serve customers. In all cases, "normal business hours" must include some evening hours at least one night per week and/or some weekend hours. -Lkj Normal operating conditions shall mean those service conditions which are within the control of the cable company. Those conditions which are not within the control of the cable company include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions which are ordinarily within the control of the cable company include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the cable system. (1) Service call shall mean any work requiring the visit of a cable television representative to the point of service and any appointment requiring the presence of the subscriber, including but not limited to, installations, repairs and additional outlets. LmA Service interruption shall mean the loss of picture or sound of one or more cable channels. ,u Small cable television systems shall have the meaning as defined in Section 596: 1 Lel of this Subtitle. 590.62 [Notification of billing] Billing practices[.] ; billing period. [ (a) Every cable television company shall notify each of its subscribers, in a separate written notice, of its billing practices and payment requirements including the use of payment coupons. The notice shall describe or define, at a minimum, billing procedures (including payment requirements to avoid discontinuance of service, e.g. , payment due dates) , late charges, downgrade charges, advance billing options, if any, procedures to be followed in billing disputes and credit to be given for service outages. (b) Notice shall be given as follows: (1) to new subscribers, at the time of initial installation; (2) to all subscribers, whenever there is a change in the company's 3 billing practices or payment requirements; (3) to all subscribers at least semiannually. ] [ (c) ] u 1) Every cable television company shall adopt billing practices in compliance with sections 590.61 through 590.66 of this Part and shall provide notice to subscribers in accordance with section 590.80(e) of this Part. (2) Every cable television company [ (1) ] ,Lid_ shall file copies of its billing practices and payment requirements with the commission; and [ (2) ] _CL11 shall maintain copies thereof on file in its local office for public inspection for a period of two years_ [copies of its billing practices and payment requirements and all advertisements, lists or other notifications regarding programming sent to or made available to the public. For purposes of this subdivision, advertisements, lists or other notification shall mean any commercial messages which a cable television company originates and causes to be disseminated to the public. or its subscribers by means of radio, television or print, or pursuant to a printed directive, which relate to the service tiers, networks or programming offered by said company to its subscribers and the rates and charges therefor, except that such terms shall not include any commercial message concerning a network or programming which originates with the network or programmer independent of the cable television company. ] (NOTE: deleted portion transferred to § 590.80(c) (8) ) JhL Billing practices may include the opportunity for advance billing. (NOTE: formerly § 590.65(a) ) (c) Billing practices shall provide that a subscriber, upon request, shall be given the oQtion of paying monthly. Use of coupon books for the remittance of monthly payments shall satisfy the monthly payment option request. If such coupon books are used by the company, no other bills for service are required to be sent out by the cable television company. (NOTE: formerly § 590.65(b) ) 590. 63 Bill format, late charges, collection charges, reconnect charges and downgrade charges. (a) Each subscriber bill shall[: ] be clear, concise and understandable and shall: (1) ,Li,_ include the name, address and telephone number of the company and ii the toll free subscriber assistance telephone number of the commission[;] identified as "Unresolved Inquiries, NYS Commission on Cable Television" which shall appear on the front side of the bill or be referenced on the front side of the bill by the words "Important subscriber information on reverse side. " (2) [shall] itemize each category of service including, but not limited to, basic service, cable programming services, per channel premium services 4 and pay per view programming, and each piece of equipment for which a charge is imposed; (3) state the billing period and clearly delineate all activity during the billing period, including but not limited to, the amount of current billing and appropriate credits or rebates, optional charges, late charges and past due balances, if any. (e) No cable television company shall impose a collection charge upon any subscriber, except as prescribed in subdivision [590.67 (e) ] 590.66(el of this Part. u No cable television company shall impose a charge for the reconnection of service,the amount of which is based solely upon consideration of whether the subscriber was previously in arrears for an amount due said company. (NOTE: formerly § 590.68) [ (f) ] jg) A cable television company may impose a downgrade charge upon the conditions and in the circumstances as follows: (1) subscribers have been notified of such charge in writing in at least 10 point type; (2) the charge does not exceed the amount permitted under [cost of the downgrade to the company;] applicable federal law or regulation. [ (3) the downgrade is from a level of service which the subscriber has not maintained continuously for six (6) months immediately preceding the date of the downgrade;] [ (4) ] _M the downgrade was not requested by a subscriber affected by a significant programming change or a network change within forty-five (45) days of the receipt by the subscriber of the notice required by Section [590.74 (b) (4) and (c) (4) . ] 590.80(b) (4) and (c) (4) of this Part or by a subscriber within thirty (30) days of receipt of notice of retiering or a rate change as required by Section 590.80(a) of this Part. 590. 64 Billing disputes[ . ], auxiliary equipment, credits, and refunds. (a) Every cable television company shall establish procedures for prompt investigation of any billing dispute registered by a subscriber. The procedures shall provide for at least 30 days from the date of receipt of the bill for the subscriber to register a billing [dispute] complaint. The procedures shall provide that the subscriber remit the undisputed portion of the bill in question pending resolution of the portion in dispute and that the subscriber shall be responsible for paying the undisputed portion of current and future bills. 5 (d) If the complaint is not resolved within 30 days of the date it is registered with the company, complainant may refer the matter to the commission in accordance with the provisions of section [590.5] 590.70 of this Part. If referral is not made within 30 days, the company may commence its disconnection procedures in accordance with section [590.67] 590.66 of this Part. (f) When a cable television company supplies auxiliary equipment such as a converter or .other modifying device to a subscriber the company can expect reasonable care of such equipment by the subscriber. A cable operator shall notify the subscriber and the commission in writing of any charges to subscribers for lost, stolen or damaged converters. In the event such eauipment is lost, stolen or damaged, and the cable television company seeks to charge the subscriber for such equipment, the company shall give written, dated notice to the' subscriber of the amount sought and the subscriber's opportunity to refer the matter to the commission in accordance with the provisions of section 590.70 of this Part. (NOTE: formerly § 590.73) S„j Refund checks will be issued promptly but no later than either: (1) the subscriber's next billing cycle following resolution of the request or thirty (30) days, whichever is earlier, or _(2) the return of equipment supplied by the cable company if service is terminated. .Ll Credits for service will be issued not later than the subscriber's next billing cycle following determination that a credit is warranted. [590.65 Advance billing. (a) Every cable television company shall notify its subscribers of any advance billing options available. (NOTE: transferred to § 590.62 (b) ) (b) A subscriber, upon request, shall be given the option of paying monthly. Use of coupon books for the remittance of monthly payments shall satisfy the monthly payment option request. If such coupon books are used by the company, no other bills for service are required to be sent out by the cable television company. ] (NOTE: transferred to § 590.62 (c) ) (590.66] 590. 65 Credit for service Outage (NOTE: § 590.66 to be renumbered § 590.65 and amended, in part) (a) Every cable television company shall [give] provide credit[, ] to subscribers affected by [for every] any service outage in excess of four (4) continuous hours in accordance with subdivisions (b) and (c) of this section. The four (4) hour period shall commence at the time the cable television company first becomes aware of the outage. 6 (b) Whenever a cable television company may reasonably determine the existence and scope of a service outage[, ] as, for example,' a service outage caused by a major failure in the system's headend or distribution electronic equipment, which service outage exceeds four (4) continuous hours[, ] and some part of which occurs during the hours 6:00 p.m. to 12:00 a.m. , the cable television company shall issue a credit to each affected subscriber. (c) In the event a cable television company cannot determine all subscribers affected by a service outage in excess of four (4) continuous hours[,] or no part of such outage occurs during the hours 6:00 p.m. to 12:00 a.m. , credit shall be given to any eligible subscriber who makes application therefor by either written or oral notice within 90 days of [the] such service outage. (e) A cable television company shall be responsible for every service outage_ [and shall provide credit to each affected subscriber who is entitled thereto pursuant to subdivisions (b) and (c) of this section.] (f) Prior written notice of a scheduled service outage [due to system upgrade or rebuild] shall be filed with the commission and the affected municipality. Every cable television company shall make a reasonable effort to inform subscribers [in writing or electronically] , in advance, of any scheduled service outages [for equipment repair or replacement, system upgrade or rebuild, or on-going technical sweeps of the system. ] - [590.67] 590.66 Discontinuance of service for nonpayment. (NOTE: § 590.67 to be renumbered only) [590.68 Delinquent reconnect charge. No cable television company shall impose a charge for the reconnection of service, the amount of which is based solely upon a consideration of whether the subscriber was previously in arrears for an account due said company. ] (NOTE: § 590.68 to be deleted and substance transferred to § 590.63(f) ) [590.69 Notice of requirements for changes in cable television rates, charges and programming services offered. (NOTE: § 590.69 to be deleted. Notice requirements in § 590.80) (a) Every cable television company shall provide notice of a change in rates or programming services offered. The notice shall be in writing and shall specify the service or services affected, the new rate or charge, including the amount of the change, and the effective date thereof. (b) Notice shall be provided as follows: (1) to subscribers affected by the changes in rates, charges or programming services offered at least ten (10) days prior to the effective date of such change; and (2) to the franchising municipality and the commission at least ten (10) days prior to the effective date of the change in rates, charges or 7 programming services offered. (c) Every cable television company which has increased rates pursuant to Section 623 of the Cable Communications Policy Act of 1984 prior to the effective date hereof shall serve written notice of any such increase upon the franchising municipality and the commission within 30 days of the effective date of this section. (d) In any case where a subscriber requests cancellation or reduction of service within 30 days of the effective date of an increase in rates or charges for such service, the liability of the subscriber for services received after the effective date of such changes until the cancellation or reduction of service, shall be determined in accordance with the rates or charges in effect prior to such change. (e) This section shall not apply to pay for view programming. ] (NOTE: see new § 590.80) 590.70 Purpose - To Be Renumbered § 597.7 590.70 Subscribers' complaints; procedure. (NOTE: transferred from § 590.5 and to be amended) (a) Complaints by cable television subscribers will be accepted by the commission in any form, written or by telephone. The procedure with respect to such complaints shall be as follows: S1) Whenever a subscriber complaint is filed, the cable television company named therein will be served by the commission with a copy of the complaint and a written notice calling the complaint to its attention and rearresting a statement concerning the matter. The commission also will forward a copy of the complaint to the chief executive officer of the municipality in which the complainant resides. Within 10 days, or such other period as may be specified in the notice, the cable television company shall submit a written answer to the commission and shall serve a copy of said answer on the complainant and on the chief executive officer of the municipality. The answer must contain a statement of the action that has been taken to resolve the complaint and/or to preclude. any recurrence of the matter complained of. If the subject of the complaint is the failure of the company to provide cable television service to a potential subscriber who has requested service the commission may require the cable television company to provide in addition to the information required by this paragraph a may of the franchised area indicating information requested by the commission _(2) Complaints received by the commission by telephone shall be recorded and kept on file. Where the nature of the telephoned complaint warrants the commission may request written information from the complainant In such cases, the commission shall follow the procedure specified in paragraph (1) of this subdivision. (3) Where numerous complaints are made or where it appears that complaints have not been resolved the commission may make further inquiry, 8 which may be formal or informal, and which may include a hearing or oral argument, or both. (b) Every cable television company shall adopt and file with the commission, in writing, its procedures for the reporting and resolution of subscriber complaints which procedures may be in such form and contain such provision as the company deems necessary, provided they are not in conflict with any Procedures. rules or regulations of the commission and (2) provide notice to subscribers in accordance with section 590.80(f) of this Part. (c) (1) The commission may delegate by written notice to any officers or employees of the commission authority pursuant to the provisions of this section to investigate, hear and resolve complaints between a cable television company and its subscribers concerning disputed bills, charges, deposits, service problems and other subscriber-related problems. Except in the instance of an appeal by any party, disposition of unresolved complaints will be determined by such officers or employees of the commission as the commission designates to act in its place. In exercising this function, the designated officers or employees may obtain the information required to make a determination by conversation with the complainant or his or her representative, by telephone or in person, supplemented where appropriate by written materials from the complainant, reports or documents from the cable television company (including such data as may be required by the staff at the request of the complainant or on its own initiative) ; through written complaints similarly supplemented; or through a conference conducted by the designated officer or employee at which the complainant, accompanied and assisted by such friend, advisor or attorney as he or she desires, and company representatives are present. Officers or employees designated to consider complaints will afford both the complainant and the cable television company a fair and reasonable opportunity to present evidence pertinent to the complaint and to challenge evidence submitted by the other party to the dispute. The complainant or cable television company complained of may obtain a written statement of the determination, including a brief reason for the conclusion. The party adversely affected by the determination of the officer or employee designated to consider the complaint may appeal to the commission. Any such appeal shall be in writing and set forth the specific basis for claiming error and shall as far as practicable follow the procedures prescribed for petitions for reconsideration provided in section 590. 19 of this Part. (2) After receipt of the answer to a complaint, and where the procedures described in paragraph (1) of this subdivision are not applicable or cannot reasonably resolve the issues raised by a complaint, the commission, on its own initiative the recommendation of staff or the request of the complainant or cable television company, may call a public hearing upon notice utilizing the procedures set forth in section 590.51 et seq. of this Part. (3) Pending resolution of complaints the commission may require appropriate interim relief to either party. In the case of complaints regarding bills or deposits the commission, without hearing or formal order, may, and in the absence of unusual circumstances shall preclude discontinuance of service or the issuance of any notice of discontinuance during the commission's 9 investigation of such complaint, upon such terms and conditions as it deems appropriate. 590.71 Types of Action - To Be Renumbered 597.8 590.72 Procedure - To Be Renumbered 597.9 [590.73 Auxiliary equipment. (a) When a cable television company supplies auxiliary equipment such as a converter or other modifying device to a subscriber the company can expect reasonable care of such equipment by the subscriber. A cable operator shall notify the subscriber and the commission in writing of any charges to subscribers for lost, stolen or damaged converters. In the event such equipment is lost, stolen or damaged, and the cable television company seeks to charge the subscriber for such equipment, the company shall give written, dated notice to the subscriber of the amount sought and the subscriber's opportunity to refer the matter to the commission in accordance with the provisions of Section 590.5 of this subtitle. If referral is not made to the commission within 30 days of the date of the notice, the company may commence its collection procedures. ] (NOTE: § 590.73 is to be deleted and substance transferred to §§ 590.64 (f) and 590.80(h) ) [590.74] 590.80 [Notice requirements for rates, charges, programming and subscriber's rights. ] Subscriber notices. (§ 590.74 to be renumbered § 590.80, retitled and amended, in part) [ (a) Rates and charges. Every cable television company shall provide notice of any changes in rates or charges for any cable television service. The notice shall be in writing and shall specify the service or services affected, the new rate or charge, including the amount of the increase and the change and the effective date thereof. Notice shall be provided at least ten (10) days prior to the effective date of any changes in rates or charges to the subscribers affected thereby, the commission and the franchising municipality. The notice to subscribers shall inform subscribers of the opportunity to request a downgrade or termination of service within thirty (30) days of the receipt of the notice without any charge therefor and without any liability for payment of any higher rate or charge. ] LL Rates, programming services and channel positions. (1) Notice required. Every cable television company shall provide notice to subscribers of (i) products and services (ii) prices and options for programming services and the conditions of subscription to programming and other services; and (iii) the channel positions of programming carried on the system. (2) Form and content of notice. (i) Notice shall be provided (a) to new subscribers at the time of installation; (b) to any subscriber who requests a change in service; (c) to all subscribers at least semi-annually; provided however, that any cable television company that bills subscribers only by coupon book and does not provide regular mailings to subscribers at least 10 quarterly may provide such notice to subscribers on an annual basis; and (d) to any person who requests such information. (ii) Notice shall be in writing and (a) shall be provided immediately where a request is made in person or (b) shall be provided by first class mail sent within ten (10) business days of the date of any request made by telephone or in writing. (iii) The notice shall contain a description, materially accurate as of the first day of the previous month. of all service tiers and the networks provided thereon and the rates and charges therefor and other services or products offered to subscribers and the rates and charges for such other services and products. The notice shall also include a statement of significant rights accorded to the subscriber's pursuant to Section 824-a of the Executive Law and the regulations promulgated by the commission. Such statement shall be in a form as approved by the commission. In addition, notice to new subscribers shall include a copy of any notice which has been sent to current subscribers pursuant to subdivisions (a) - (c) of this section within the previous sixty (60) days. (3) Changes, (i) Every cable television company shall provide notice to subscribers of any changes in rates, programming services or channel positions as soon as possible through announcement on the cable system and in writing. Notice of any increase in the rates for the basic service tier or associated equipment must be provided to subscribers at least 30 days in advance. Notice of other such changes must be given to subscribers thirty (30) days in advance if such change is within the control of the cable television company. For purposes of this paragraph "announcements on the cable system" shall mean a "written, on-screen message on the affected channel(s) , or program listing channel, or such other channel as may be used for the dissemination of written messages to subscribers. (ii) If a change in programming services or channel positions constitutes either a "significant Qrogramming change" as defined in subdivision (b) of this section or a "network change" as defined in subdivision (c) of this section, the cable television company shall also provide the notice as described in such subdivision. (c) (8) A cable television company shall maintain copies of all advertisements lists or other notifications regarding programming sent to or made available to the public For purposes of this subdivision, advertisements lists or other notification shall mean any commercial messages which a cable television company originates and causes to be disseminated to the public or its subscribers by means of radio, television or print or pursuant to a printed directive, which relate to the service tiers, networks or programming_offered by said company to its subscribers and the rates and charges therefor, except that such terms shall not include any commercial message concerning a network or programming which originates with the network or programmer independent of the cable television company._ (NOTE: formerly § 590.62 (c) (2) ) 11 [ (e) Other subscriber rights. (1) Notice required. Every cable television company shall provide notice concerning the programming and other services offered on the cable television system and the rates. and charges therefor. (2) Form and content of notice. (i) Notice shall be provided (a) to new subscribers at the time of installation; (b) to any subscriber who requests a change in service; (c) to all subscribers at least semi-annually; provided, however, that any cable television company that bills subscribers only by coupon book and does not provide regular mailings to subscribers at least quarterly may provide such notice to subscribers on an annual basis; and (d) to any person who requests such information. (ii) Notice shall be in writing and (a) shall be provided immediately where a request is made in person or (b) shall be provided by first class mail sent within ten (10) business days of the date of any request made by telephone or in writing. (iii) The notice shall contain a description, materially accurate as of the first day of the previous month, of all service tiers and the networks provided thereon and the rates and charges therefor and any other services offered to subscribers and the rates and charges for such other services. The notice shall also include a statement of significant rights accorded to subscribers pursuant to section 824-a of the Executive Law and the regulations promulgated by the commission. Such statement shall be in a form as approved by the commission. In addition, notice to new subscribers shall include a copy of any notice which has been sent to current subscribers pursuant to subdivisions (a) - (c) of this section within the previous sixty (60) days. (f) This section shall be effective immediately upon filing with the Secretary of State and shall supersede any commission rule inconsistent herewith including particularly, but without limitation, section 590.69. ] (e) Billing practices. (1) Every cable television company shall provide notice to subscribers of its billinct practices and payment requirements including the use of payment coupons. The notice shall describe or define, at a minimum, billing procedures (including payment requirements to avoid discontinuance of service, e.g. , payment due dates) , late charges, downgrade charcres, advance billing options, if any, procedures to be followed in billing disputes and credit to be given for service outages. (2) Notice shall be in the form of a separate written notice and shall be provided (i) to new subscribers, at the time of initial subscription or reconnection, (ii) to all subscribers annually and (iii) to all subscribers at least thirty (30) days in advance of any significant change in such billing practices or payment reuuirements and as further prescribed in section 590. 62 of this Part. (f) Complaint procedures. (l) Every cable television company shall provide notice to subscribers of its complaint procedures. (2) Notice shall be in writing and shall be provided (i) to new subscribers at the time of initial subscription or reconnection to the cable television system (ii) to all 12 subscribers annually and (iii) to all subscribers at least thirty (30) days in advance of any significant change in such complaint procedures. The notice shall inform the subscriber that any unresolved complaint with the company may be referred to the commission pursuant to subdivision (a) of section 590.70. Such notice shall also contain the address and telephone number of the commission and the toll free subscriber assistance telephone number of the commission. lg1 Installation, use and maintenance of cable service. (1) Every cable television company shall provide notice to subscribers of its installation and service maintenance policies and instructions on how to use cable services. Notice shall be in writing and shall be provided to new subscribers at the time of installation (i) to any person upon request (ii) to all subscribers semi-annually and (iii) to all subscribers at least thirty (30) days in advance of any significant chancres in such information. JbI Lost, stolen or damaged equipment. A cable television company shall provide notice to subscribers of any charges for lost, stolen or damaged equipment in accordance with section 590.64 (f) of this Part. Sia Disconnection of service. Every cable television company shall provide separate written notice of service discontinuance in accordance with section 590.66 of this Part. Lil Removal of home wiring. (1) Every cable television company shall provide notice to subscribers of the opportunity to acquire home wiring upon termination of service. (2) Notice shall be in writing and shall be provided ,(i) to new subscribers, at the time of installation; (ii) to all subscribers, whenever there is a change in the company's home wiring removal Practices or costs thereof; and (iii) to all subscribers at least annually. 590.90 Telephone availability and answer standards. (a) Every cable television system shall maintain a local, toll-free or collect call telephone access line which will be available to its subscribers twenty-four (24) hours a day, seven days a week, provided, that, (1) after normal business hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after normal business hours must be responded to by a trained company representative on the next business day. (b) Trained company representatives must be available to respond to callers during normal business hours. (c) All cable television systems, except small cable television systems, under normal operating conditions, shall meet the following telephone answer standards: (1) telephone answer time by trained company representatives, including wait-time shall not exceed thirty (30) seconds from when the connection is made; 13 (2) if ' a call needs to be transferred, transfer time shall not exceed thirty (30) seconds; (3) callers will receive a busy signal less than three (3) percent of the time; and (4) requirements of this part, shall be met no less than ninety (90) percent of the time, measured on a quarterly basis. (d) Information regarding telephone answer standards shall be reported to the commission for normal business hours on a quarterly basis and shall include, at a minimum: (i) the total number of days trained company representatives were available to receive incoming calls (ii) the total number of calls received on such days (iii) average length of time a caller waits on hold before reaching a trained company representative (iv) total number of calls abandoned by incoming callers and (v) percentage of time callers received a busy signal when attempting to reach the cable system. (e) Cable systems filing quarterly with the commission regarding telephone answer standards must maintain for a period of one (1) year at the local offices, summary of records compiled on a daily basis for each month of the year sufficient to measure and verify compliance with quarterly telephone answer standards. (f) Quarterly reports on telephone answer standards shall be filed with the commission on April 15, July 15, October 15 and January 15 of each year. (g) Cable television systems will not be required to acquire equipment or perform surveys to measure compliance with telephone answer standards unless an historical record of complaints indicates a clear failure to comply. (h) Customer service centers and bill payment locations shall be open at least during normal business hours. 590.91 Installations, outages and service calls. (a) Whenever a service call, including an installation or reconnection, is not started within the scheduled "appointment window" , as established pursuant to paragraph (3) of subdivision (b) of this section, the subscriber shall not be charged for such service call unless it was rescheduled with the subscriber's consent before the close of business on the business day prior to the initially scheduled "appointment window" ; (b) All cable television systems under normal operating conditions, shall meet no less than ninety-five percent (95%) of the time, measured on a guarterly basis, the" following service standards: (1) standard installations of up to one-hundred fifty (150) feet from existing distribution system shall be performed within seven (7) business days after an order is placed; (2) excluding conditions beyond control of the cable company, a cable television system will (i) begin working on service interruptions promptly 14 and in no event later than twenty-four (24) hours after the interruption becomes known and (ii) begin actions to correct other service problems the next business day after notification of the service problem or trouble call; (3) the "appointment window" alternatives for installations. service calls. and other installation activities will be either (i) . a specific time. (ii) morning or afternoon hours. , (iii) a four hour time block of time durinq normal business hours, (iv)- evenings or Saturdays during normal business hours. or (v) at the option of the cable television company outside of normal business hours for the express convenience of the customer; (4) if a cable company representative is running late for an appointment with a customer and -will not be able to keep the appointment as scheduled, the customer will be contacted. The appointment will be rescheduled, as soon as possible, at a time which is convenient for the customer consistent with paragraphs (1) and (2) of this subdivision. (c) Information regarding the service standards contained in subdivision (a) of this section. measured on a_ quarterly basis, shall be reported to the commission and shall at a minimum include: (i) number of requests for standard installations and number performed within seven (7) business days, (ii) number of service interruptions and number of service interruptions responded to within and after twenty-four (24) hours after notification. (iii) number of service calls to subscriber's residence for installations, outages and service calls performed and number performed as per subscriber requested time period, (iv) number of installations or service calls rescheduled, and (v) number of credits issued for missed installation or service calls to subscriber's premises. (d) Quarterly service reports shall be filed with the commission on April 15, July 15, October 15 and January 15 of each year. (e) The provisions of subdivision (a) , paragraphs (3) and (4) of subdivision (b) and subdivisions (c) and (d) of this section shall not be applicable to small cable television systems. (f) Provisions for keeping records of service or trouble calls by cable television systems are specified in part 596.8 (g) . 590.92 Removal of Home Wiring. Upon voluntary termination of cable service by a subscriber, a cable television company shall not remove the cable home wiring unless it gives the subscriber the opportunity to acquire the wiring at the replacement cost, and the subscriber declines. The cost is to be determined based on the replacement cost per foot of the cabling multiplied by the length in feet of the cable home wiring. If the subscriber declines to acquire the cable home wiring the cable television company must then remove it within thirty (30) days or make no subsequent attempt to remove it or to restrict its use. Every cable television company shall provide notice to subscribers of the provisions of this section in accordance with section 590.80(1) of this Part. 15 595.5 Requirements for construction of cable television plant and provision of cable television services. o (b) Where a cable television franchise is awarded, renewed or amended after October 1, 1982, the franchise will be confirmed or the amendment will be approved by the commission only if the franchise contains the following additional minimum franchise standards: (3) That cable television service will be provided to any subscriber who demands service within seven (7) business days of the request for service and who is located within 150 feet of aerial feeder cable, and that the charge for the installation for any subscriber so situated will not*be in excess of the standard installation charge [specified in the franchise] . 596.8 Trouble calling processing. (a) A telephone number shall be made available to which subscribers may direct trouble calls. In the event that trouble calls must be made outside the subscriber's local dialing area, the calls must be toll free[.] in accordance with sections 590.90(a) and (b) of this subtitle. o (c) [Whenever a service] Service calls to the subscriber's premises [is required, ] shall conform to the standards in section 590.91 of this subtitle. [the company shall advise such subscriber of the opportunity to schedule the service call for the morning or afternoon hours (or evenings or Saturdays, if available) and shall schedule such service call in accordance with the subscriber's request. If, for any reason, the service call is not made within the scheduled time frame, the subscriber shall not be charged for such service call including any installation or reconnection made as a result thereof. ] TNT J,.4, 5 1,994 t i NEW YORK STATE COMMISSION ON CABLE TELEVISION U yr 1+ In the Matter of 93-445 Amendment of the Commission's Rules to ) Docket No. 90448 add Subpart 592-3 relativelo rate ) regulation pursuant to 47 C.F.R. ) Sections 76.900 et seq. ) ORDER ADOPTING RULE ON AN EMERGENCY BASIS AND NOTICE OF REVISED RULEMAKING (Adopted: December 7, 1993; Released: January 12, 1994) PLEASE TAKE NOTICE that the Commission has filed with the Secretary of State a Notice of Emergency Adoption and Revised Rulemaking pursuant to Section 202(6) of State Administrative Procedure Act ("SAPA') whereby the Commission has adopted emergency rules applicable to cable television rate regulation in New York State. On September 24, 1993, the Commission issued a Notice of Proposed Rulemaking ("NPRM") in this docket in which we proposed to adopt rules consistent with federal statutory and regulatory changes concerning cable television rate regulation and with Article 28 of the New York State Executive Law. (Notice of Proposed Rulemaking,Docket No. 90448, Order No. 93-331.) The proposed rules were designed to provide reasonable alternatives for dealing with cable television rates in New York and to provide minimum, uniform procedures that would satisfy federal statutory and regulatory requirements for ratemaking by municipalities and the Commission alike. Comments were received until November 15, 1993. A list of commentors is included in the of Assessment of Public Comment attached to this order. In the NPRM, we noted that the federal regulations became effective September 1, 1993 and that Section 76.910(e)thereof(47 C.F.R. Section 76.910(e))requires a franchising authority to adopt, within 120 days of the effective date of certification and prior to the commencement of rate regulation, regulations that are consistent with the regulations of the Federal Communications Commission ("FCC") governing the basic tier and that also provide a reasonable opportunity for consideration of the views of interested parties in ratemaking proceedings. In this context, we also noted the possibility that the we might determine to adopt rules on an emergency basis in order to facilitate the commencement of rate regulation by municipalities and to expedite the commencement of rate regulation by the Commission in those instances where a municipality has asked the Commission to regulate rates. After careful review of the comments received, we determined that modifications in the rules, as initially proposed, were warranted and that the rules, as modified, should be adopted on an emergency basis. A description of significant changes is contained in the Assessment of Public Comment. a ,• S rM1� 2 Our decision to take emergency action was based, in part, on the reasons described in the NPRM, supra., and, in part, on the fact that Section 76.910(e) of the FCC's regulations requires the adoption of rules by franchising authorities within 120 days of the effective date of certification and that said 120 day period will lapse for many certifications in the state before the earliest opportunity for us to adopt final rules and make them effective. Emergency action will serve the public interest by removing any cloud of uncertainty that might otherwise exist if rules are not adopted within 120 days of certification.1 The Notice of Emergency Adoption and Revised Rulemaking was filed with the Secretary of State on December 28, 1993. The emergency rules became effective upon filing. Complete copies of(1) the Assessment of Public Comment and (2) the Text of the Emergency Rule, both as filed with the Secretary of State, are attached to this order. The Commission invites comments from interested parties on the revised rule. Comments in this proceeding should be submitted no later than February 15, 1994. All written comments should be submitted to William F. Huff, Administrative Officer, NYS Commission on Cable Television, ESP, Corning Tower, 21st Floor, Albany, New York 12223. THE COMMISSION ORDERS: 1. Pursuant to Sections 815, 816, 821, 822 and 825 of the Executive Law and Section 202(6) of the State Administrative Procedure Act, the rules attached hereto are hereby adopted on an emergency basis and a further, or revised, rulemaking is hereby commenced in this docket. Said rules shall become effective on the date filed with the Secretary of State and shall remain effective for a period of ninety days or until further action by the Commission. 2. That a Notice of Emergency Adoption and Revised Rulemaking together with a revised regulatory impact statement and a revised regulatory flexibility analysis be filed with Secretary of State for publication and be served upon other appropriate officials in accordance with the State Administrative Procedure Act and the Executive Law. Commissioners Participating: William B. Finneran, Chairman; Gerard D. DiMarco, John A. Passidomo, Barbara T. Rochman, David F. Wilber, III, Commissioners. 1 Under FCC regulations, certification is effective 30 days after an application therefor is filed by a franchising authority with the FCC. Franchising authorities were permitted to seek certification as of September 1, 1992-- the effective date of the FCC rate regulations-- and, accordingly, it was possible to obtain certification as early as September 30, 1992. At least some municipalities in the state filed for certification in the first days and weeks after the effective date. Moreover, the Commission,which has filed for certification for over 400 municipalities, actually obtained certification for 130 municipalities between September October 21 and November 12, 1993. Since the full revised rulemaking process could not be completed and rules made effective until mid-March, the 120 day period would lapse for these certifications but for emergency action. ASSESSMENT OF PUBLIC COMMENT The Commission received written comments on the proposed rule from the New York State Conference of Mayors and Municipal Officials, New York State Consumer Protection Board, City of New York Department of Telecommunications & Energy, Larchmont-Mamaroneck Cable TV Board of Control, Municipal Electric Utilities Association of New York State, Cable Television Association of New York and Alexander G. Gabriels, III. The proposed rule is designed to implement recent changes in federal statutory law and new rules adopted by the Federal Communications Commission ("FCC") which permit franchising authorities to regulate the rates for basic. cable service and associated equipment in accordance with substantive criteria contained in the FCC rules. The essential features of the new federal regulatory scheme were summarized in the Notice of Proposed Rulemaking in this docket. Section 592-3.4, as proposed, sets forth an elective procedure whereby a municipality may determine that rates for basic cable service and associated equipment will be regulated either by the municipality or the Commission.Alternatively, a municipality may decide that such rates shall not be regulated initially. The proposed rule also sets forth procedures for making elections and provides for the modification of elections once made. Certain commentors suggested that municipal governments might choose to join together to exercise rate regulation and asked that the Commission modify the rule to recognize the opportunity for joint regulation. The Commission did not intend by the rules to prohibit or discourage municipalities from joining together to regulate rates and the rule has been amended to formally recognize the opportunity for joint regulation by two or more municipalities served by the same cable system. Section 592-3.4(a) contained a specific date -- December 31, 1993 --by which municipalities would be expected to make an initial election with respect to rate regulation. Various parties challenged the proposed deadline, both with respect to the Commission's jurisdiction to impose it and the proximity of the date to the effective date of the rule. While it is true that federal rules do not require franchising authorities to regulate rates in every instance, the issue of when and whether rate regulatory authority is exercised is not governed by federal law. As the FCC has stated, "...local franchising authorities receive their power to grant franchises and regulate rates from the state.......(Report and Order, Docket No. 92-266, Para. 69) It is also true that the regulatory scheme was adopted in anticipation of widespread regulation and is designed to confer the benefits of regulation retroactively for up to twelve months. The Commission believes that the opportunity to regulate basic cable television rates and associated equipment is of sufficient import for municipalities to address the issue formally and to make an initial election by a date certain. The process of decisionmaking will promote a better 2 understanding of FCC rate regulations by municipal officials and interested constituents alike. Furthermore, municipalities that choose regulation will be better served if that decision leaves adequate time within which to conduct and conclude a ratemaking proceeding before August 31, 1994 -- twelve months from the effective date of the FCC rules. At the same time,the Commission is persuaded that the deadline for elections may be extended beyond December 31, 1993 without undue adverse effect and, accordingly, the rule has been modified to extend the date until February 28, 1994. In the absence of a municipal decision, Section 592-3.4(2) provides that the Commission may undertake rate regulation or other action consistent with the public interest. The New York State Consumer Protection Board has recommended that the rule be changed to provide that if no municipal election is made, the Commission "shall' undertake rate regulation or other action. While it is the intent of the commission to ensure the benefits of the new rate standards to the maximum extent consistent with municipal elections, it is not necessary to mandate formal regulation or even formal action in every instance where a municipality does not act timely. For example, based upon notices of municipal elections already received, the Commission will be regulating some part of most cable systems in the state. To the extent that the Commission will be examining the rates of a particular system, it is likely that the benefits of Commission action relative to one municipality may be extended to other municipalities in the same system without additional formal rate proceedings in every case. Also, the results of rate proceedings may induce municipalities to act affirmatively. The City of New York and other commentors have asked that the proposed rule be modified to recognize that the decision to regulate rates need not require formal action by a municipal legislative body. The commentors note that in certain municipalities, under local law or the franchise agreement,the authority to make rate related decisions may be delegated to a municipal official. In recognition of those instances -- few in number -- in the state where such authority has been delegated, the Commission has amended the rule to ensure that actions taken pursuant to such authority to regulate rates locally are not suspect under the rules. Section 592-3.4(d) relative to a municipal election not to regulate rates generated a number of comments. One commentor recommended that this section be deleted. Another commentor argued that the Commission does not have the authority to require a public hearing prior to a municipal determination not to regulate or to require a justification by the municipality of such decision. Still other commentors claimed that the process for choosing not to regulate should be similar to the procedure for choosing one of the other options. The issue of rate regulation under new federal standards is of sufficient public interest that a formal determination by municipalities to defer regulation is desirable. On 3 the other hand, the Commission is persuaded by the commentors that it is not necessary to impose unique procedural requirements on such a decision. Accordingly, the Commission has deleted the requirement for a public hearing prior to the decision not to regulate and also the requirement for a statement justifying such decision. In respect to the latter, the Commission is particularly mindful that the proposed requirement that the municipal legislative body determine that rates are in substantial compliance with the new federal rate standards is a very difficult standard given the complexity and evolving nature of the regulations. The rule will provide that a determination not to regulate may be changed at any time and that it is subject to review by the Commission pursuant to the standards in Section 822 of the Executive Law. A number of commentors have noted the large number of elections that have already been made by municipal governments and asked that such actions be grandfathered. The Commission agrees and has added a new paragraph (e) to Section 592-3.4 to provide that municipal elections made on or before the thirtieth day following the effective date of the rules will be presumed valid and will remain in effect until modified. Section 592-3.6 contains procedures which municipalities may follow in regulating rates themselves as well as procedures applicable to regulation by the Commission. Various commentors noted that some municipalities have already adopted procedures and asked that the Commission modify the rule to recognize the validity of such procedures. Other commentors contend that uniform procedures are unnecessary and in some instances undesirable. In this regard, it should be emphasized that the proposed procedures were designed to implement the requirements of the FCC as a condition to rate regulation and, with reference to municipalities, particularly, to facilitate municipal regulation by alleviating the need for each municipality to devote time and resources to the adoption of separate regulations and procedures. The Commission did not intend to foreclose municipal action entirely and, accordingly, the Commission has amended Sections 592-3.6(a) to recognize that a municipality may adopt additional procedures provided they are consistent with FCC regulations and ensure at least the opportunity for public participation contained in the Commission's rules. Comments received on the procedures, themselves, challenge the absolute requirement for a public hearing within the first thirty days after rates are filed by a cable television company and the requirement that two public hearings be held in every rate proceeding that extends beyond thirty days. Under FCC regulations, a franchising authority must take some action within the first 30 days following the receipt of rates or else the rates will be deemed reasonable. That action may include a decision to extend the time for review of rates for an additional period of 90 or 150 days depending upon the method of regulation chosen by the cable television company. In retrospect, the unconditional requirement for a public hearing in the first 30 days may impose practical difficulties,especially where additional information is required 4 and interested parties have not had an opportunity to familiarize themselves with all the information necessary to evaluate rates. Upon consideration of the comments, the Commission has determined to delete the absolute requirement for a public hearing within the first 30 days and for two public hearings in every proceeding that extends beyond 30 days in favor of a general requirement that "no action which finally determines a rate making proceeding shall be taken except after at least one public hearing." In other words, if a municipality does not schedule a public hearing in the first 30 days it would be expected to extend the time for review. The fact that rates could become final within thirty days, however, requires that some opportunity be provided for the participation by interested parties during the initial period and the rule will require an opportunity for written comments. Also, because inaction for a thirty day period would result in an approved rate, the rule has been modified to require that a municipality ensure that a public meeting is scheduled during such thirty day period so that it is in a position to formally act to extend the time for review. Section 592-3.6(e) provides that a cable company must certify the accuracy of financial information submitted in conjunction with a ratemaking proceeding. CTANY has commented that the rule should be clarified to provide that such certification requirement is not interpreted to require the services of an outside auditor. Since it was not the intent of the Commission to require certification by an outside auditor, the rule has been modified to recognize that certification may be made by an officer of the cable television company. Section 592-3.7 applicable to notices of rate increases essentially tracks the FCC rules and also provides that the cable television company should provide written notice to the Commission and any affected municipality at least fifteen days before it provides notice of a rate increase to subscribers. CFANY challenges such additional fifteen day notice requirement as an unlawful imposition of an additional condition on a rate increase. The Commission disagrees. First, there is no apparent reason why FCC regulations require that notice of a rate increase for cable programming services be served upon a municipality, but that notice of an increase in basic rates be served only on subscribers. Second, thirty day notice of a rate increase in basic service does not provide enough time for a franchising authority that has not already sought certification to apply for and obtain certification in time to defer the proposed rate increase until after a ratemaking proceeding. The notice provision in the rule is designed simply to provide municipalities and the commission with the opportunity to respond to proposed rate increases that could be subject to regulation but for a delay in seeking certification. Finally, Section 592-3.9 concerning cable programming services, provides at subsection (c) that a subscriber filing a complaint with the FCC should also file a copy of that complaint upon the municipality wherein the subscriber resides and the Commission. This proposal was intended to conform the FCC procedure for filing complaints for unreasonable cable programming services rates to the regulatory structure in New York State. Specifically, under FCC rules, a person complaining of cable programming service 5 rates at the FCC is required to file a copy of such complaints on the "relevant franchising authority." In New York, the relevant franchising authority would include the municipality and the Commission. Nonetheless, the Commission recognizes that it is difficult to communicate this requirement to all subscribers and other potential complainants in the State of New York and that such requirement, if not met, could possibly taint an otherwise legitimate complaint. Accordingly,the Commission has deleted the requirement that a copy of a complaint be filed with the Commission in favor of a requirement that the cable company, upon receipt of a copy of a complaint, file a copy of thereof promptly with the Commission. As a relevant franchising authority, the Commission will review complaints and submit is views when and as deemed appropriate. TEXT OF EMERGENCY RULE 592-3 Procedures applicable to rate regulation pursuant to 47 C.F.R. Sections 76.900 et seq. Section 592-3.1 (a) Intent and Purpose. Section 623 of the Cable Communications Policy Act of 1984, as amended by Section 3 of the Cable Television Consumer Protection and Competition Act of 1992, and codified in 47 U.S.C. Section 543, provides for the regulation by state and local franchising authorities of the rates charged for basic cable service by cable television companies not subject to effective competition. Section 623 has been implemented by rules and regulations adopted by the Federal Communications Commission and published at 47 C.F.R. Sections 76.900 et seq. The purpose and intent of this Subpart is to provide rules applicable to the regulation of rates for basic cable service in the State of New York by municipalities and the commission consistent with the federal rules and regulations in 47 C.F.R. Sections 76.900 et seq. (b) This paragraph shall apply to all references to the Code of Federal Regulations ("C.F.R.") contained herein. The applicable provisions of the C.F.R. are available for public inspection and copying at the offices of the Commission on Cable Television,Corning Tower Bldg., Empire State Plaza, Albany, New York 12223 and the New York State Department of State located at 41 State Street, Albany, New York 12207. 47 C.F.R. Sections 76.900 et seq.were published in the Federal Register, Volume 58, No. 97, May 21, 1993 at pp. 29753- 29768, together with 47 C.F.R. Section 0.459 were published by the United States Government Printing Office, Superintendent of Documents, Washington, D.C. 20402. 592-3.2 Definitions. (a) 'Basic cable service," or"basic service," or "basic service tier" shall mean the tier of cable service that shall include, as a minimum, all signals of domestic television broadcast stations provided to any subscriber (except a signal secondarily transmitted by satellite carrier beyond the local service area of such station, regardless of how such signal is ultimately received by the cable system), any public, educational and governmental channels required by the franchise or commission rules and may include any additional video programming signals as determined by a cable television company. (b) "Cable programming service" shall mean any video programming provided over a cable system, regardless of service tier, including installation or rental of equipment used for the receipt of such video programming, other than: (1) video programming carried on the basic service tier as defined in this section; (2) video programming offered on a pay-per-channel or pay-per-program basis; or (3) a combination of multiple channels of pay-per-channel or pay-per-program video programming offered on a multiplexed or time-shifted basis so long as the combined service: 2 (i) consists of commonly-identified video programming; and (ii) is not bundled with any regulated tier of service. (c) "Commission"shall mean the New York State Commission on Cable Television. (d) "Equipment" or "associated equipment" shall mean all equipment in a subscriber's home that is used to receive the basic service tier, regardless of whether such equipment is additionally used to receive other tiers of regulated programming service and/or unregulated service, including, but not limited to, converter boxes, remote control units, connections for additional television receivers and other cable home wiring, and the installation or rental thereof. (e) "F.C.C." shall mean the Federal Communications Commission. (f) 'Participant" shall include any person who has submitted written comments or sworn testimony in a ratemaking proceeding. In addition, the commission shall be deemed a participant in any ratemaking proceeding conducted by a municipality and a municipality shall be deemed a participant in any ratemaking proceeding conducted by the commission concerning a cable television company franchised to provide cable service in such municipality. Pursuant to 47 C.F.R Section 76.944(b) (see: section 593-3.1(b)) a participant may file an appeal of a decision of a municipality or the commission with the FCC within thirty days of release of the written decision described in Section 592-3.6(f) and (g) of this Subpart. (g) "Ratemaking proceeding" shall mean a proceeding for the review of rates for basic cable service and associated equipment conducted by the commission or a municipality after certification pursuant to 47 C.F.R.Section 76.910 and after the written notice described in 47 C.F.R. Section 76.910(e)(2) has been served upon a cable television company. (h) 'Relevant franchising authority" shall mean both the municipality in which the cable television company provides cable service and the commission. 592-3.3 Effective Competition. Only the rates for basic cable service of a cable television system that is not subject to effective competition as defined in 47 C.F.R. Section 76.905 may be regulated by a municipality or the commission. In the absence of a demonstration to the contrary, cable systems are presumed not to be subject to effective competition. 592-3.4 Municipal election. (a) A municipality shall determine whether the rates charged for basic cable service and associated equipment by one or more cable television companies franchised to provide cable service therein will be regulated in accordance with the provisions of 47 C.F.R. Sections 76.900 et seq. Pursuant to this section, a municipality may (1) elect to undertake such rate regulation itself, or jointly in conjunction with one or more municipalities served by the same cable television system or (2) elect to have the 3 commission undertake such rate regulation or (3) elect that no such regulation is warranted at the time the initial election is made. A municipality shall make an initial election pursuant to this section on or before February 28, 1994, provided, however, that if no election is made by such date, the commission may undertake such rate regulation or other action as may be necessary consistent with the public interest. (b) A municipality may elect to undertake the regulation of rates for basic cable service and associated equipment charged by any cable television company franchised to provide cable service therein in accordance with 47 C.F.R. Sections 76.900 et seq. subject to conditions as follows: (1) the legislative body shall adopt a resolution at a regular or special meeting thereof, which resolution shall include (i) the name of the cable television franchisee to be regulated and (ii) a statement that the municipality possesses the personnel and resources necessary to administer the regulations in 47 C.F.R., Sections 76.900 et seq. or, alternatively, if a municipal official is vested with authority to act on behalf of a municipal legislative body in matters pertaining to cable television rates, by action of said official in the manner prescribed for the exercise of such authority, provided said action shall identify the cable television franchisee to be regulated and state the existence of the personnel and resources necessary to administer said FCC regulations. (2) the municipality shall serve a certified copy of said resolution or a true copy of an action on delegated authority on the commission within five days of the date thereof; (3) the municipality shall also serve promptly upon the commission(i) a copy of its request for certification as filed with the F.C.C. and copies of oppositions, if any, to such request; (ii) notice that certification has been obtained or, alternatively, a copy of any response from the F.C.C. to the contrary; and (iii) a copy of the notice served upon the cable television franchisee initiating regulation as required by 47 C.F.R. Section 76.910(e)(2). (c) A municipality may elect to have the commission undertake the regulation of rates for basic cable service and associated equipment charged by any cable television company franchised to provide cable service therein in accordance with 47 C.F.R. Sections 76.900 et seq. subject to conditions as follows: (1) the legislative body shall adopt a resolution at a regular or special meeting thereof which resolution shall include (i) the name of the cable television franchisee to be regulated and (ii) a statement that the municipality chooses to have the commission undertake such regulation; (2) such election shall be effective on the date that the certified copy of said resolution is received by the commission. 4 (d) A municipality may elect not to undertake regulation in accordance with 47 C.F.R. Sections 76.900 et seq. subject to conditions as follows: (1) the legislative body shall adopt a resolution at a regular or special meeting thereof which resolution shall include (i) the name of the cable television franchisee and (ii) a statement that the rates charged by said franchisee for basic service and associated equipment shall not be subject to regulation at such time but that the municipality reserves the right to alter said election at any time. (2) The municipality shall serve a certified copy of said resolution on the commission within five days of the date of adoption; (3) an election not to regulate rates may be changed at any time; (4) a municipal determination that rates shall not be subject to regulation in accordance with 47 C.F.R. Sections 76.900 et seq. shall be subject to review by the commission pursuant to the standards set forth in section eight hundred twenty-two of the executive law. (e) An election made by a municipality before the thirtieth day following the effective date of this Subpart shall be presumed valid and shall remain in effect until altered in accordance with section 592-3.5 herein. Section 592-3.5 Reversal of Election. A municipality may, at any time, alter an initial election in the same manner required for such initial election, provided, that it shall provide prompt notice thereof to the commission and to any cable television company affected thereby and further provided that in any case where the commission regulates rates, any such change shall not take effect during the pendency of a ratemaking proceeding. 592-3.6 Procedures. (a) Every ratemaking proceeding shall be conducted and decided in accordance with the regulations of the F.C.C. and the provisions of this section not inconsistent therewith;provided, however, that a municipality which elects to regulate rates itself, or jointly with one or more other municipalities, may adopt and administer additional regulations with respect to the rates for the basic service tier that are consistent with the regulations of the F.C.C. and may adopt additional procedures applicable to the submission and consideration of views of interested parties.A municipality which adopts such additional regulations or procedures shall file a copy thereof with the commission. (b) A ratemaking proceeding shall be deemed commenced (1) when a cable television company is served by a municipality or the commission with the written notice described in 47 C.F.R. Section 76.910(e)(2); or(2) after such written notice has been served on a cable television company,and provided that certification remains in effect,upon receipt by a municipality or the commission of a notice of any proposed increase or decrease in the rates for basic cable service and associated equipment. 5 (c) In accordance with 47 C.F.R. Section 76.930, a cable television company shall file its schedule of rates for basic cable service and associated equipment with the municipality and the commission (1) within thirty days of receiving such written notice or by November 15, 1993, whichever is later, or (2) at least thirty days prior to the effective date of any proposed increase. Such rates shall be filed on forms, or in the manner, as may be prescribed by the F.C.C. In either case, the cable television company shall cause to be published in a newspaper of general circulation in the municipality, a notice that said ratemaking proceeding has been commenced; that a copy of the schedule of rates will be available for public inspection during normal business hours at the office of the clerk of the municipality and at the commission; and that interested parties may submit written comments to the municipality or the commission, as the case may be, on or before a specified date which shall not be later than the twentieth day after said schedule of rates is filed by the cable television company. Such notice shall be published at least fifteen days before the due date for comments. (d) Promptly upon receipt of said schedule of rates, a municipality that has chosen to undertake rate regulation in accordance with 47 C.F.R. Sections 76.900 et seq. shall ensure that a public meeting is scheduled to occur within thirty days of the date the cable company files its schedule of rates on applicable FCC forms and may schedule a public hearing for the purpose of receiving public comment on said rates. The authority to schedule said hearing may be delegated to the clerk or other municipal official by the municipal legislative body. Notice of such hearing shall be published at least five days before the date of said hearing. In the event that the municipality determines pursuant to 47 C.F.R. Section 76.933 to extend the time for review of rates beyond thirty days, it shall provide at least one additional opportunity for the submission of written comments. No action which finally determines a ratemaking proceeding shall be taken except after at least one public hearing. The costs of publication of all notices shall be borne by the cable television company. (e) When filing or submitting financial information, a cable television company shall certify the accuracy of such information; provided, however, that certification may be made by an officer of the cable television company. A cable television company may be required to produce proprietary information provided, however, that procedures analogous to those set forth in 47 C.F.R. Section 0.459 regarding requests for confidentiality shall be applied by the municipality or the commission. (f) A determination of rates shall be made at a public meeting and shall be embodied in a written decision whenever such determination (1) disapproves an initial rate; (2) disapproves a request for a rate increase in whole or in part; or (3) approves a request for an increase in whole or in part over the objection of a participant. (g) Every written decision must include at a minimum (1) the date the ratemaking proceeding was commenced; (2) a copy of each public notice described in this section; (3) a list of the participants in the ratemaking proceeding; (4) a complete description of each 6 rate approved or disapproved and the effective date thereof; (5) whether a rate reduction or rate refund is being ordered and, if so, the amount of the reduction or refund; (6) the effective date of the rates approved and the amount of reductions or refunds, if any; and (7) a statement that the decision was made in accordance with applicable federal standards and the regulations contained in this Subpart. (h) Whenever a written decision is issued, copies of the text shall be provided to all participants in the proceeding and shall be made available to the public. Notice of the issuance of a written decision and the availability thereof shall be published in a newspaper of general circulation in the affected municipality. The cable television company shall bear the costs of such notice. (i) In addition to the foregoing, the commission shall not enter an order prescribing any rate unless: (1) it shall have caused a notice of the rates proposed by a cable television company to be served at the commencement of the rate proceeding on each municipality wherein said company provides service and shall have provided each municipality with a reasonable period of time consistent with the applicable federal procedure to file comments on the proposed rates; and (2) in the event it determines pursuant to 47 C.F.R. Section 76.933 to extend the time for review of rates beyond thirty days, it shall provide at least one additional opportunity for the submission of written comments by interested parties and may conduct a public hearing; (3) in respect to so much of any rate or charge as shall be based upon franchise fees payable to a municipality or the cost of compliance with public, educational or governmental access requirements or any other requirements set forth in the municipal franchise agreement, it shall have provided the municipality with a reasonable opportunity consistent with time periods applicable to review and to comment upon the amount of such fees and costs. Section 592-3.7 Notice of rate increases. A cable television company shall provide written notice to subscribers of any increase in the rates for cable services at least thirty days before any proposed increase is effective. The notice to subscribers should include the name and address of the commission and the municipality. A cable television company shall provide written notice to the commission and the municipality at least fifteen days before it provides such notice to subscribers. Section 592-3.8 Notification of basic service tier availability. A cable television company shall provide written notification to subscribers of the availability of basic cable service by November 30, 1993, or three billing cycles from September 1, 1993, and to new subscribers at the time of installation. This notification shall include the following information: ' C 7 (a) that a basic service tier is available; (b) the cost per month for the basic service tier; and (c) a list of all services included in the basic service tier. Section 592-3.9 Cable Programming Services. (a) A municipality, the commission, any subscriber or other relevant governmental entity may file with the F.C.C. a complaint challenging the reasonableness of the rates charged by a cable television company for cable programming services or the reasonableness of a charge for installation or rental of equipment used for the receipt of cable programming services. (b) Pursuant to 47 U.S.C. Section 76.951(a), any complaint regarding a cable television company's rates for cable programming services or associated equipment must be filed using standard complaint form, FCC 329. The cable television company must provide a copy of the standard complaint from to any subscriber upon request. (c) A copy of any complaint filed by a municipality shall be served upon the cable television company and the commission. A copy of any complaint filed by the commission shall be served upon the cable television company and any municipality wherein the challenged rates or charges are in effect or proposed to be implemented. A copy of any complaint filed by a subscriber or other relevant governmental entity shall be served promptly upon the cable television company and the municipality wherein the subscriber or entity resides. Upon receipt of such complaint, the cable television company shall serve a copy thereof upon the commission. A cable television company shall serve a copy of its filing with the F.C.C. on the commission and the municipality. A municipality or the commission, or both of them, may present views to the F.C.C. on any complaint regarding rates for cable programming services or associated equipment. ACC (ECEIVED F E3 2 -� 1994 AMERICAN COMMUNITY CABLEVISION February 22, 1994 Ms. Callista Paolangeli, Clerk City of Ithaca City Hall 108 E. Green Street Ithaca, NY 14850 Dear Ms. Paolangeli: Enclosed is a check in payment of American Community Cablevision's franchise fee for the fourth quarter of 1993. A statement outlining the computation of this fee payment has been included. Should you have any questions, please feel free to call. American Community Cablevision takes great pride in serving the residents of the City of Ithaca. Si rely, aym d H. Mc abe Area Manager cc: The Honorable Benjamin Nichols, Mayor enc. RHM/mkk 519 West State Street Ithaca, New York 14850 607-272-3456 National Division T I M E W A R N E R C A B L E February 8, 1994 City of Ithaca Ithaca, New York Dear Sir or Madam: ZZNY 0040 Enclosed please find a check for $ 34,570.83 which is payment of franchise fees for the fourth quarter of 1993 for American Community Cablevision. At this point, we have not deducted the overpayments for the prior periods. However, in the future, we reserve the right to reduce franchise fee payments by the amount overpaid. Computation is as follows: Taxable Gross Revenues $723,087.85 Franchise Fee Rate Less NYCC 4.781% --------------- Franchise Fee Due $34,570.83 --------------- --------------- I , Ivy W_ Parish, Controller of Time Warner Cable. National Division, certify that the above schedule summarizes the Gross Revenues, as defined in the franchising agreement, for the period indicated for the CATV operations in the City of Ithaca, New York. Signed: w. vy W. Parish, Controller IWP/lmf Enclosure National Division 116 Inverness Drive Fast Saito 105 Eagleerood CO 80111 Tel 303.:99.9.199 Fax:30:3.619.81)901303.649.8035 Mailingilddress: P.O.Box 6919 Engleevood CO 80155-69'29 :1 Division of Time Wierner Eatertainneent Company.L.P. p Ot IT�9 d :cbq�A1►7Eo��, CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14880 OFFICE OF TELEPHONE: (607)274-6504 CITY ATTORNEY FAX: (607)272-7348 MEMORANDUM TO: James A. Ferwerda, Chair, Cable Commission FROM: Chuck Guttman, City Attorney e ' - RE: Rate Regulation DATE: March 4, 1994 As I assume you are aware, pursuant to recent federal law and regulations of the Federal Communications Commission, the rates that may be charged by cable TV companies may be regulated. There also is, in the City of Ithaca's Franchise Agreement with ACC, regulation regarding the rates of the basic service. I believe that the City of Ithaca has three options. We may choose not to regulate rates under the Cable Act of 1992 and instead simply rely on the rate regulation in the Franchise Agreement. Alternatively, the City may choose to undertake rate regulation itself in compliance with federal law as implemented by the FCC regulations. A third option would be to have the New York State Commission on Cable Television undertake rate regulation for the City in compliance with the FCC regulations. To date the City has not elected to regulate rates under the Cable Act of 1992 based on my understanding that the rate regulations set forth in the Franchise Agreement provides lower rates to customers, then ACC would be entitled to charge under the FCC Regulations. It is my understanding that the City could, at anytime elect to have rates regulated under the FCC Regulations. "An Equal Opportunity Employer with an Affirmative Action Program" Recycled Paper James Ferwerda -2- March 4, 1994 It is also my understanding that FCC has recently revised downward the rate structure and I am no longer sure that the rates set forth in the Franchise Agreement are less than what ACC could charge under the FCC Regulations. since your commission has much more expertise in this subject than I do, I would appreciate your reviewing and continuing to review as time goes by, the rates actually being charged by ACC, the cap set in the Franchise Agreement, and what ACC could charge if the City elected to have rates regulated under the FCC regulations. I realize that this is a very complicated subject and would be happy to meet with you to discuss this, if you think that would be beneficial. a C~ fet CITY OF ITHACA l oa EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF TELEPHONE: (607)274-6504 CITY ATTORNEY FAX: (607)272-7348 M11EM0IEINAN D U M. TO: Dick Booth FROM: Chuck Guttman, City Attorney C/,0, DATE: March 7, 1994 RE: Cable Television - Emergency Procedures During the last snow storm you asked me what information I had with regard to emergency broadcasts over the cable television network. I advised you that off hand I knew that something existed but, did not know the details. Since then I have reviewed the Franchise Agreement between the City and ACC as well as related information and can find only one section in the Franchise Agreement which has any reference to an emergency alert system. This is Section 15.4 of the Franchise Agreement. Section 15 generally deals with the institutional network. Section 15.4 provides : "ACC shall provide an all channel audio emergency alert system to the City. The initiation site for emergency messages shall be the Central Fire Station. ACC shall provide a telephone line activation system for the emergency alert system. " I can find no other reference to this emergency system or any other emergency system either in the Franchise Agreement, the City ordinance regarding cable TV, the New York State law regarding cable TV, etc. If you wish me to look into this matter further, please let me know. cc: Benjamin Nichols, Mayor A• "An Equal Opportunity Employer with an Affirmative Action Program" 'itv Recycled Paper CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF TELEPHONE: (607)274-6504 CITY ATTORNEY FAX: (607)272-7348 M EEM0IRANDUM TO: Chuck Guttman, City Attorney FROM: Pat Kennedy, Assistant City AttorneY ( , DATE: May 6, 1994 RE: "Obscenity" As Ben Requested yesterday, I contacted both Lauren Stefanelli and Ray McCabe regarding the allegedly obscene presentation at 9:30 p.m. on March 3rd, on the ACC Cable access channel. According to the complainant, Jean Finley, who also provided a copy of the tape, the program was produced by Bill McCormick who also worked on the camera. Lauren Stefanelli said that she would have someone hand deliver a copy of the ACC Cable Policies and Procedures to you at Common Council Wednesday night. We probably should put these in the cable book or in some place where we can find them in the future. I viewed the allegedly offensive video tape last night. It was a student talk show kind of program with three IC and/or Cornell students, all male dressed in strange costumes. Two of the students had on sunglasses and long wool caps. One was wearing a brown plastic bag, the second was wearing a white sheet, and the third had on hunting or fishing clothes. During the course of the call in show, which seemed to be enthusiastically received by apparently a young audience of people who were calling in to talk to these students, they used considerable profanity as in "fucking this" and "fucking that. " The student wearing the hunting clothes dropped his drawers twice during the program and mooned the audience for a fraction of a second, mostly in response from the call in audience that he do so to display some sort of bloody cyst, apparently on his rear end. The student who was wearing the white robe kept referring to himself as "God" as did the other students on stage and calling in. c64W . "An Equal Opportunity Employer with an Affirmative Action Program" Recycled Paper Chuck Guttman -2- May 6, 1994 In my opinion, if you want it, this was offensive and tasteless, but not by the standards in this community obscene. I returned the tape to Theresa to give to Jean Finley and told Theresa that if Jean Finley wanted to pursue an obscenity charge against the producers, she should take he tape to the City Prosecutor or the District Attorney. When I talked to Ray McCabe, who�ate in the afternoon on Wednesday, he said that you had told him that if ACC ever tried to pull a program on obscenity grounds that we would sue him. He seemed surprised at my questions and said that ACC would love to be able to shut down some of the more tasteless or crude programming, but felt that given the agreement with the City, they could not do so. He said that he would be very receptive to the idea of some kind of screening group for the purposes of making reprogramming recommendations of programs based on merit. After talking to Ray McCabe, I got a phone call this morning from Tom Terrizzi who was out of town yesterday. He said that there is a new federal cable act which does deal with the question of obscenity to a certain degree and he believes that it may give cable companies slightly more power than previously existed, particularly on the subject of reprogramming. However, he thinks its probably unconstitutional. Is this attempt to repress cable programming content something that you and the Mayor actually want to work on? If so, let me know. ACCIj AMERICAN COMMUNITY CABLEVISION May 24, 1994 •.... 0 ` Ms. Callista Paolangeli, Clerk City of Ithaca I FIN City Hall I i 108 E. Green Street Ithaca, NY 14850 CITY CLERK'S OFFICE Dear Ms. Paolangeli: As I have previously advised the City of Ithaca, we are in the process of reviewing the additional 600 pages of rate regulations from the Federal Communications Commission, and we are in the process of completing complicated forms to determine the impact on cable rates in our community. The FCC recently released revisions in their forms and distributes "Questions and Answers" to clarify portions of the regulations on a routine basis. Therefore, the process has been quite confusing, and it will be several weeks before we will be able to determine our rates. The FCC recognized that systems would not be able to bring regulated rates into compliance with the modified benchmark system by May 15. Therefore, in accordance with Section 76.922 (6) (B) of the rules and regulations of the FCC, this letter will advise you that the City of Ithaca has met the conditions to qualify for a 60-day deferral and has elected to do so. We anticipate finalizing rates in the next few weeks so that we will be able to begin notifying you and our customers of rate changes by mid-June. As I have previously offered, the regulations are available in our office. If you would like to copy the regulations for your files, please do not hesitate to contact me. The rate regulations are more than 1000 pages, and additional regulations represent an additional 1000 pages. Ve truly yo rs Ra and H. McCabe Area Manager 519 West State Street Ithaca, New York 14850 607-272-3456 t CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14880 OFFICE OF TELEPHONE: (607)274-6504 CITY ATTORNEY FAX: (607)272-7348 MEM ® IRANDUloll TO: Cable Commission FROM: Chuck Guttman, City Attorney doe DATE: June 3 , 1994 RE: Emergency Rule Making Enclosed please find a copy of an emergency rule which was adopted by the State of New York regarding procedures to be used by municipalities to regulate rates for cable service. To date, the City of Ithaca has not chosen to have rates regulate by the New York State Cable Commission or to regulate rates itself. Determining instead that at this time, no such regulation is warranted. The City has the right at any time to reverse that election and choose to have rates regulated. I would urge the Cable Commission to study this issue and to make a recommendation to Council as to whether or not the City of Ithaca should have rates regulated as opposed to merely relying on the rate regulation established in our franchise agreement, and if so, whether such regulation should be done' by the City itself or referred to the New York State Commission on Cable Television. 4M "An Equal Opportunity Employer with an Affirmative Action Program" tj Recycled Paper RV LEMAKING ACTIVITIE Each rule making is identified by an I.D. NO., which con- clarify the authority to regulate rates in New York and include procedures necessary to initiate regulation. FCC rules anticipate that ratemaking sists of 13 characters. For example, the I.D. NO. AAM- proceedings may extend 120 or 180 days or even longer. It is necessary 01-88-00001-E indicates the following: to adopt the proposed rules on an emergency basis so that rate regulation may begin proceedings concluded in order that subscribers realize the full AAM -the abbreviation to identify the adopting agency retroactive benefits of rate determinations. 01 -the State Register issue number Subject: Procedures to be used by municipalities and the Commission 88 -the year on Cable Television in electing to regulate rates for cable and in con- ducting any proceedings in respect to regulated rates. 00001 -the Department of State number, assigned upon Purpose: To establish procedures for rate regulation in New York State receipt of notice consistent with new Federal regulations. E -Emergency Rule Making—permanent action not Text of emergency rule: 592-3 Procedures applicable to rate regulation pursuant to 47 C.F.R. Sections 76.900 et seq. intended (This character could also be: A for Section 592-3.1 (a)Intent and Purpose.Section 623 of the Cable Com- Adoption; P for Proposed Rule Making; RP for munications Policy Act of 1984, as amended by Section 3 of the Cable Revised Rule Making; EP for a combined Emer- Television Consumer Protection and Competition Act of 1992,and cod- ified in 47 U.S.C. Section 543, provides for the regulation by state and gency and Proposed Rule Making; EA for an local franchising authorities of the rates charged for basic cable service Emergency Rule Making that is permanent and by cable television companies not subject to effective competition. Sec- does not expire 60 days after filing; Or C for Con- tion 623 has been implemented by rules and regulations adopted by the Federal Communications Commission and published at 47 C.F.R. Sec- tinuation) tions 76.900 et seq.The purpose and intent of this Subpart is to provide rules applicable to the regulation of rates for basic cable service in the Italics contained in text denote new material. Brackets in- State of New York by municipalities and the commission consistent with dicate material to be deleted. the federal rules and regulations in 47 C.F.R.Sections 76.900 et seq. (b)This paragraph shall apply to all references to the Code of Federal Regulations("C.F.R.") contained herein. The applicable provisions of the C.F.R.are available for public inspection and copying at the offices of the Commission on Cable Television, Corning Tower Bldg., Empire Commission on Cable Television State Plaza,Albany, New York 12223 and the New York State Depart- ment of State located at 41 State Street, Albany, New York 12207. 47 EMERGENCY C.F.R. Sections 76.900 et seq. were published in the Federal Register, Volume 58, No. 97, May 21, 1993 at pp.29753-29768, together with 47 RULE MAKING C.F.R. Section 0.459 were published by the United States Government Procedures to be Used by Municipalities to Regulate Rates for Printing Office,Superintendent of Documents,Washington,D.C.20402. Cable Service 592-3.2 Definitions. (a) `Basic cable service," or "basic service," or I.D.No. CTV-39-93-00005-E "basic service tier"shall mean the tier of cable service that shall include, Filing No. 868 as a minimum,all signals of domestic television broadcast stations pro- 4 vided to any subscriber(except a signal secondarily transmitted by sat- Filing date May 6, 199 sat- Filing date: May 6, 4 ellite carrier beyond the local service area of such station, regardless of Effecthow such signal is ultimately received by the cable system), any public, PURSUANT TO THE PROVISIONS OF THE State Administrative educational and governmental channels required by the franchise or com- Procedure Act,NOTICE is hereby given of the following action: mission rules and may include any additional video programming signals Action taken: Addition of Subpart 592-3 to Title 9 NYCRR. as determined by a cable television company. Statutory authority. Executive Law,Art.28,sections 815,816,821,822 (b)"Cable programming service"shall mean any video programming and 825 provided over a cable system,regardless of service tier,including instal- Finding of necessity for emergency rule: Preservation of general welfare. lation or rental of equipment used for the receipt of such video program- Specific reasons underlying the finding of necessity: The FCC has ming, other than: adopted Federal standards applicable to the regulation of rates for basic (1)video programming carried on the basic service tier as defined in service and associated equipment.FCC rules became effective September this section; 1, 1993.A franchising authority that chooses to regulate rates must ob- (2) video programming offered on a pay-per-channel or pay-per- tain certification from the FCC and adopt regulations to assure compli- program basis; or ance with Federal standards including public participation in ratemaking (3)a combination of multiple channels of pay-per-channel or pay- proceedings. FCC rules provide that decisions on rates may have retro- per-program video programming offered on a multiplexed or time-shifted active effect for 12 months or to September 1, 1993.The proposed rules basis so long as the combined service: 1 Rule Making Activities NYS Register/May 25, 1994 r (i)consists of commonly-identified video programming;and F.C.C. to the contrary; and (iii) a copy of the notice served upon the (ii)is not bundled with any regulated tier of service. cable television franchisee initiating regulation as required by 47 C.F.R. (c) "Commission" shall mean the New York State Commission on Section 76.910(e)(2). Cable Television. (c) A municipality may elect to have the commission undertake the (d)"Equipment"or"associated equipment"shall mean all equipment regulation of rates for basic cable service and associated equipment in a subscriber's home that is used to receive the basic service tier, re- charged by any cable television company franchised to provide cable gardless of whether such equipment is additionally used to receive other service therein in accordance with 47 C.F.R.Sections 76.900 et seq.sub- tiers of regulated programming service and/or unregulated service, in- ject to conditions as follows: cluding,but not limited to, converter boxes, remote control units, con- (1)the legislative body shall adopt a resolution at a regular or special nections for additional television receivers and other cable home wiring, meeting thereof which resolution shall include(i)the name of the cable and the installation or rental thereof. television franchisee to be regulated and(ii)a statement that the munic- (e)"F.C.C." shall mean the Federal Communications Commission. ipality chooses to have the commission undertake such regulation; (f) "Participant" shall include any person who has submitted written (2)such election shall be effective on the date that the certified copy comments or sworn testimony in a ratemaking proceeding. In addition, of said resolution is received by the commission. the commission shall be deemed a participant in any ratemaking pro- (d)A municipality may elect not to undertake regulation in accordance ceeding conducted by a municipality and a municipality shall be deemed with 47 C.F.R. Sections 76.900 et seq. subject to conditions as follows: { a participant in any ratemaking proceeding conducted by the commission (1)the legislative body shall adopt a resolution at a regular or special concerning a cable television company franchised to provide cable service meeting thereof which resolution shall include(i)the name of the cable in such municipality. Pursuant to 47 C.F.R. Section 76.944(b)(see:sec- television franchisee and(ii) a statement that the rates charged by said tion 593-3.1(b))a participant may file an appeal of a decision of a mu- franchisee for basic service and associated equipment shall not be subject nicipality or the commission with the FCC within thirty days of release to regulation at such time but that the municipality reserves the right to of the written decision described in Section 592-3.6(f) and (g) of this alter said election at any time. Subpart. (2) The municipality shall serve a certified copy of said resolution (g)"Ratemaking proceeding"shall mean a proceeding for the review on the commission within five days of the date of adoption; of rates for basic cable service and associated equipment conducted by (3)an election not to regulate rates may be changed at any time; the commission or a municipality after certification pursuant to 47 (4)a municipal determination that rates shall not be subject to reg- C.F.R.Section 76.910 and after the written notice described in 47 C.F.R. ulation in accordance with 47 C.F.R. Sections 76.900 et seq. shall be Section 76.910(e)(2)has been served upon a cable television company. subject to review by the commission pursuant to the standards set forth (h)"Relevant franchising authority"shall mean both the municipality in section eight hundred twenty-two of the executive law. in which the cable television company provides cable service and the (e)An election made by a municipality before the thirtieth day follow- commission. ing the effective date of this Subpart shall be presumed valid and shall 592-3.3 Effective Competition. Only the rates for basic cable service remain in effect until altered in accordance with section 592-3.5 herein. of a cable television system that is not subject to effective competition Section 592-3.5 Reversal of Election.A municipality may,at any time, as defined in 47 C.F.R.Section 76.905 may be regulated by a municipality alter an initial election in the same manner required for such initial elec- or the commission. In the absence of a demonstration to the contrary, tion, provided, that it shall provide prompt notice thereof to the com- I cable systems are presumed not to be subject to effective competition. i mission and to any cable television company affected thereby and further 592-3.4 Municipal election.(a)A municipality shall determine whether provided that in any case where the commission regulates rates,any such j the rates charged for basic cable service and associated equipment by one change shall not take effect during the pendency of a ratemaking pro- or more cable television companies franchised to provide cable service ceeding. therein will be regulated in accordance with the provisions of 47 C.F.R. 592-3.6 Procedures. (a) Every ratemaking proceeding shall be con- Sections 76.900 et seq. Pursuant to this section, a municipality may(1) ducted and decided in accordance with the regulations of the F.C.C.and I elect to undertake such rate regulation itself, or jointly in conjunction the provisions of this section not inconsistent therewith; provided,how- with one or more municipalities served by the same cable television system ever, that a municipality which elects to regulate rates itself, or jointly or(2)elect to have the commission undertake such rate regulation or(3) with one or more other municipalities, may adopt and administer addi- elect that no such regulation is warranted at the time the initial election tional regulations with respect to the rates for the basic service tier that i is made. A municipality shall make an initial election pursuant to this section on or before February 28, 1994, provided, however, that if no are consistent with the regulations of the F.C.C. and may adopt addi- election is made by such date,the commission may undertake such rate tional procedures applicable to the submission and consideration of views regulation or other action as may be necessary consistent with the public of interested parties. A municipality which adopts such additional reg- interest. ulations or procedures shall file a copy thereof with the commission. (b)A municipality may elect to undertake the regulation of rates for (b)A ratemaking proceeding shall be deemed commenced(1)when a basic cable service and associated equipment charged by any cable tele- cable television company is served by a municipality or the commission vision company franchised to provide cable service therein in accordance with the written notice described in 47 C.F.R. Section 76.910(e)(2); or with 47 C.F.R.Sections 76.900 et seq.subject to-conditions as follows: (2) after such written notice has been served on a cable television com- (1)the legislative body shall adopt a resolution at a regular or special pany,and provided that certification remains in effect, upon receipt by meeting thereof,which resolution shall include(i)the name of the cable a municipality or the commission of a notice of any proposed increase television franchisee to be regulated and(ii)a statement that the munic- or decrease in the rates for basic cable service and associated equipment. ipality possesses the personnel and resources necessary to administer the (c) In accordance with 47 C.F.R. Section 76.930, a cable television regulations in 47 C.F.R., Sections 76.900 et seq. or, alternatively, if a company shall file its schedule of rates for basic cable service and asso- municipal official is vested with authority to act on behalf of a municipal ciated equipment with the municipality and the commission (1) within legislative body in matters pertaining to cable television rates,by action thirty days of receiving such written notice or by November 15, 1993, of said official in the manner prescribed for the exercise of such author- whichever is later,or(2)at least thirty days prior to the effective date of j ity, provided said action shall identify the cable television franchisee to any proposed increase. Such rates shall be filed on forms, or in the be regulated and state the existence of the personnel and resources nec- manner, as may be prescribed by the F.C.C. In either case, the cable essary to administer said FCC regulations. television company shall cause to be published in a newspaper of general (2)the municipality shall serve a certified copy of said resolution or circulation in the municipality,a notice that said ratemaking proceeding a true copy of an action on delegated authority on the commission within has been commenced;that a copy of the schedule of rates will be available five days of the date thereof; for public inspection during normal business hours at the office of the (3)the municipality shall also serve promptly upon the commission clerk of the municipality and at the commission; and that interested (i) a copy of its request for certification as filed with the F.C.C. and parties may submit written comments to the municipality or the com- +: copies of oppositions,if any,to such request;(ii)notice that certification mission,as the case may be, on or before a specified date which shall has been obtained or, alternatively, a copy of any response from the not be later than the twentieth day after said schedule of rates is filed by f i NYS Register/May 25, 1994 Rule Making Activities the cable televisiorf company. Such notice shall be published at least Section 592-3.8 Notification of basic service tier availability. A cable fifteen days before the due date for comments. television company shall provide written notification to subscribers of (d)Promptly upon receipt of said schedule of rates,a municipality that the availability of basic cable service by November 30, 1993, or three has chosen to undertake rate regulation in accordance with 47 C.F.R. billing cycles from September 1, 1993,and to new subscribers at the time Sections 76.900 et seq.shall ensure that a public meeting is scheduled to of installation.This notification shall include the following information:. occur within thirty days of the date the cable company files its schedule (a)that a basic service tier is available; of rates on applicable FCC forms and may schedule a public hearing for (b)the cost per month for the basic service tier;and the purpose of receiving public comment on said rates.The authority to (c)a list of all services included in the basic service tier. schedule said hearing may be delegated to the clerk or other municipal Section 592-3.9 Cable Programming Services. (a)A municipality, the official by the municipal legislative body. Notice of such hearing shall commission, any subscriber or other relevant governmental entity may be published at least five days before the date of said hearing. In the file with the F.C.C. a complaint challenging the reasonableness of the event that the municipality determines pursuant to 47 C.F.R. Section rates charged by a cable television company for cable programming serv- 76.933 to extend the time for review of rates beyond thirty days, it shall ices or the reasonableness of a charge for installation or rental of equip- provide at least one additional opportunity for the submission of written ment used for the receipt of cable programming services. comments.No action which finally determines a ratemaking proceeding (b)Pursuant to 47 C.F.R. Section 76.951(a),any complaint regarding shall be taken except after at least one public hearing.The costs of pub- a cable television company's rates for cable programming services or lication of all notices shall be borne by the cable television company. associated equipment must be filed using standard complaint form,FCC (e)When filing or submitting financial information,a cable television 329.The cable television company must provide a copy of the standard company shall certify the accuracy of such information;provided,how- complaint form to any subscriber upon request. ever,that certification may be made by an officer of the cable television (c) A copy of any complaint filed by a municipality shall be served company.A cable television company may be required to produce pro- upon the cable television company and the commission. A copy of any prietary information provided, however, that procedures analogous to complaint filed by the commission shall be served upon the cable tele- those set forth in 47 C.F.R. Section 0.459 regarding requests for confi- vision company and any municipality wherein the challenged rates or dentiality shall be applied by the municipality or the commission. charges are in effect or proposed to be implemented. A copy of any (f) A determination of rates shall be made at a public meeting and complaint filed by a subscriber or other relevant governmental entity shall shall be embodied in a written decision whenever such determination(1) be served promptly upon the cable television company and the munici- disapproves an initial rate; (2)disapproves a request for a rate increase pality wherein the subscriber or entity resides.Upon receipt of such com- in whole or in part;or(3)approves a request for an increase in whole or plaint, the cable television company shall serve a copy thereof upon the in part over the objection of a participant. commission. A cable television company shall serve a copy of its filing (g)Every written decision must include at a minimum(1)the date the with the F.C.C.on the commission and the municipality.A municipality ratemaking proceeding was commenced;(2)a copy of each public notice or the commission,or both of them,may present views to the F.C.C.on described in this section; (3)a list of the participants in the ratemaking any complaint regarding rates for cable programming services or asso- proceeding; (4) a complete description of each rate approved or disap- ciated equipment. proved and the effective date thereof;(5)whether a rate reduction or rate Section 592-3.10 Severability. If any provision of this Subpart or the refund is being ordered and,if so,the amount of the reduction or refund; application of such provision to any circumstances is held invalid for any (6)the effective date of the rates approved and the amount of reductions reason whatsoever, the remainder of this Subpart or the application of or refunds, if any; and (7) a statement that the decision was made in the provision to other circumstances shall not be affected thereby. accordance with applicable federal standards and the regulations con- This notice is intended to serve only as a notice of emergency adoption. tained in this Subpart. This agency intends to adopt the provisions of this emergency rule as a (h)Whenever a written decision is issued, copies of the text shall be permanent rule, having previously published a notice of proposed rule provided to all participants in the proceeding and shall be made available making,I.D.No.CTV-39-93-00005-P,Issue of September 29, 1993.The to the public.Notice of the issuance of a written decision and the avail- emergency rule will expire 60 days after filing. ability thereof shall be published in a newspaper of general circulation Text of emergency rule, the regulatory impact statement, if any, the in the affected municipality.The cable television company shall bear the regulatory flexibility analysis,if any,and the assessment of public com- costs of such notice. ment,if any, may be obtained from: William F. Huff, Commission on (i)In addition to the foregoing,the commission shall not enter an order Cable Television, Epire State Plaza, Corning Tower, 21st Fl., Albany, prescribing any rate unless: NY 12223,(518)474-4992 (1)it shall have first caused a notice of the rates proposed by a cable Regulatory Impact Statement television company to be served [at the commencement of the rate pro- 1. Statutory Authority: ceeding)on each municipality wherein said company provides service and Sections 825, 821 and 822 of the Executive Law require approval of shall have provided each municipality with a reasonable period of time cable television rates by the franchising municipality and/or the Com- consistent with the applicable federal procedure to file comments on the mission to the extent consistent with federal law. In the past,rates were proposed rates;and set initially through negotiation between a municipality and the fran- (2)in the event it determines pursuant to 47 C.F.R. Section 76.933 chised cable company or, alternatively, by the Commission. Section to extend the time for review of rates beyond thirty days,it shall provide 825(5)(e).In every instance,rates were subject to the review and approval at least one additional opportunity for the submission of written com- by the Commission. ments by interested parties and may conduct a public hearing; The Cable Television Consumer Protection and Competition Act of (3) in respect to so much of any rate or charge as shall be based 1992 permits franchising authorities to regulate rates for basic service and upon franchise fees payable to a municipality or the cost of compliance associated equipment(47 U.S.C. Section 543)in accordance with stand- with public, educational or governmental access requirements or any ards promulgated by the Federal Communications Commission other requirements set forth in the municipal franchise agreement,it shall ("FCC"). FCC standards are contained in 47 C.F.R. Section 76.900 et have provided the municipality with a reasonable opportunity consistent seq. These rules provide,inter alia,for substantive criteria for rate reg- with time periods applicable to review and to comment upon the amount ulation and the opportunity for appeal of all local rate decisions to the of such fees and costs. FCC.In New York State,a franchising municipality and the Commission Section 592-3.7 Notice of rate increases.(a)A cable television company are both franchising authorities.The proposed rule provides for regula- shall provide written notice to subscribers of any increase in the rates for tion by a franchising municipality or the Commission at the election of cable services at least thirty days before any proposed increase is effective. the municipality. The rule also sets forth procedures applicable to rate- The notice to subscribers should include the name and address of the making. commission and the municipality. (b)A cable television company shall 2. Legislative Objectives: provide written notice to the commission and the municipality at least The proposed rule will establish procedures for rate regulation in New [fifteen] thirty days before [it provides such notice to subscribers] any York State consistent with new federal legislation.The statutory author- proposed increase in the rates for cable services is effective. ity for a dual franchising and rate setting process is well established in 3 r�• Rule Making Activities NYS Register/May 25, 1994 New York.The proposed rule clarifies and applies those objectives to a requirement for a public hearing prior to any municipal decision that ! new federal regulatory scheme. affected cable television rates in New York. 3. Needs and Benefits: 10. Compliance schedule: The proposed rule clarifies the respective roles of municipalities and FCC rules were effective September 1, 1993. On or after that date, the Commission under new federal rate regulation. The proposed rule franchising authorities may begin to seek certification, and once having also implements requirements of federal law by creating minimum pro- obtained certification,to adopt rules and initiate regulation.Formal rate cedures by which the public may participate in the rate setting process. determinations made on or before August 31, 1994 may have retroactive (47 U.S.C. Section 543 and 47 C.F.R.Section 76.900 et seq.) effect to September 1, 1993. The requirement that municipalities make 4. Costs: an initial election by February 28, 1994,is designed to assure that where (a)Costs to regulated entities:The proposed rule imposes requirements regulation is chosen, ample time will exist to commence and conclude for newspaper notice of a proceeding for rate approval and of the written ratemaking proceedings before August 31, 1994. decision issued by the franchising authority. If a municipality elects to Regulatory Flexibility Analysis regulate itself, a notice of public hearing will be required. Costs of at 1.Effect on small business:The proposed rule is intended to implement least two newspaper publications(and possibly others)will be borne by provisions of the rules of the Federal Communications Commission at regulated entities. Otherwise, the proposed rule imposes no additional 47 C.F.R. Section 76.900 et seq. applicable to cable television rate reg- costs upon the regulated entity over and above those already imposed by ulation.The FCC has stayed the effectiveness of the rules for small cable federal law and rules. systems until further action. A small system is defined by the FCC as (b)Costs to state and local governments: The proposed rule imposes any cable television company serving less than 1,000 subscribers from a minimal costs upon local governments, as most of the regulatory costs single cable television headend facility through mechanically intercon- will be incurred at the direction of the FCC pursuant to federal law and nected cable to the subscriber.Until further FCC action, all cable com- rules. In the past, rates were generally established in the franchise or panies exempt pursuant to Section 813(2)of the Executive Law and some franchise renewal and by franchise amendment.Each process required a larger cable companies will not be subject to rate regulation and, there- public hearing preceded by notice. The proposed rule requires at least fore,will be exempt from the proposed rule. one public hearing for those municipalities electing to regulate rates, 2.Compliance requirements:There are no record keeping or reporting however, the hearing need not be held separately from other municipal requirements imposed by the proposed rule. Cable companies that be- meetings thus imposing little or no additional costs. come subject to rate regulation will have to bear the costs of publishing There will be regulatory costs imposed upon the Commission to con- notices at various stages of a ratemaking proceeding. duct hearings and to provide stenographic or other transcription or re- 3.Professional services:The proposed rule will not require small busi- cording services for same.Travel expenses will be incurred to attend local nesses to retain professional services. hearings,as well as to conduct Commission hearings.Publication will be 4.Compliance costs:Except as noted in paragraph 2,supra,there are required to notice hearings,rate filings and any written decisions rendered no initial or ongoing compliance costs imposed upon the regulated in- by the Commission. Costs associated with these activities will depend dustry by the proposed rule. upon the number of municipalities electing to ask the Commission to set 5. Minimizing adverse impact:The proposed rule will not impose ad rates. Newspaper publication may average$7.00 for each notice. verse economic impact upon small businesses. (c)and(d)Estimate of cost and methodology:The proposed rule will 6. Small business participation:The proposed rule implements provi- impose additional costs upon state and local governments but exact sions of federal law and rules applicable to rate regulation. The Com- amounts cannot be determined at this time.Hearing and publication costs mission reviewed comments of New York cable companies in relevant imposed by the proposed rule will depend upon the number of munici- om- palities that choose regulation, the number seeking Commission assist- proceedings before the FCC. In addition, the Commission sought able ance, municipalities electing not to set rates, and those ratemaking Television from, and conducted meetings with, representatives of the Cable proceedings conducted by the Commission wherein the Commission de- Television Association n the State of New York, the New York State termines a hearing is required. This determination, in turn, will depend Conference a Mayors and Municipal Officials,the Association St Towns As- in part,upon whether the cable operator files rate schedules based upon and the Government Oversight Committee of the New York State As- the benchmark approach set forth in the FCC's rules, or attempts to sembly. justify rates in excess of the benchmark by a cost of service showing. Assessment of Public Comment The need for hearings may also depend upon the involvement of the The Commission received one comment in this docket since the last pub- public in any given municipality. For all these reasons, the Commission lication of the rule in the State Register of March 23, 1994.Anthony J. is unable to provide an estimate of actual costs to state and local gov- Genovesi, Chairman, New York State Assembly Committee on Over- ernments. sight,Analysis&Investigation,submitted a comment on April 21, 1994. 5. Local Government Mandates: Mr. Genovesi urges the Commission to revise the rule as published on a The proposed rule requires a municipal government to decide formally March 23, 1994 and reinstate a provision included in an earlier version t whether or not rates shall be regulated and,if so,by whom. of the proposed rule which was published in the State Register on Sep- 6 t .Paperwork: tember 29, 1993.Specifically,the proposed rule included a provision that The proposed rule requires a municipality to notify the Commission obligated local governments electing not to regulate rates for basic service of its decision concerning rate regulation. and related equipment and service charges,to precede that election by a 7. Duplication: public hearing. In our assessment of comments submitted with the first The proposed rule restates certain requirements set forth in 47 C.F.R. revision and published on January 12, 1994, we cited our awareness of Section 76.900 et seq. the complexity and newness of the federal regulations and that our pro- 8.Alternatives: posed requirements for a hearing and statement of justification were Federal statute and regulations prescribe the scope of, and standards tantamount to a requirement the municipality make a substantive rate for,rate regulation.The only flexibility permitted franchising authorities determination. Moreover, the decision not to regulate rates may be is whether and when to regulate rates and the procedures for public changed at any time and is subject to Commission review. Our prior participation in the ratemaking process. There are no significant alter- finding was affirmed by the recent release of three reconsideration orders natives. by the Federal Communications Commission, which orders add new 9.Federal standards: standards for the reasonableness of future rates and another level of v Federal regulations requires a franchising authority to adhere to federal complexity to any rate review. Indeed,these new standards may induce substantive standards in regulating rates and to adopt procedures that many municipalities to review prior determinations not to regulate rates. provide the public with an opportunity to participate in ratemaking pro- At this time, we will not impose a hearing requirement precedent to a ceedings.The proposed rule exceeds federal standards by requiring that municipal election not to regulate rates and will continue to permit mu- l a municipality set rates only after a public hearing upon notice. This nicipalities to change any election by resolution.We reserve jurisdiction public hearing requirement is imposed to comport with the traditional to review any municipal action. 4 l I� T I M E W A R N E R C A B L E k ` 7 September 22, 1994 Ms. Callista Paolangeli, Clerk City of Ithaca City Hall 108 E. Green Street Ithaca, NY 14850 Dear Ms. Paolangeli: I am pleased to inform you that Time Warner Entertainment Company, L.P. , which is the parent of Time Warner Cable and the franchisee under our cable franchise, has recently announced an agreement with Advance Publications and Newhouse Broadcasting Corporation to create a new joint venture cable operation to be called Time Warner Entertainment-Advance/Newhouse partnership. Advance/Newhouse will contribute all their cable television systems, serving 1.4 million customers, and Time Warner Cable will contribute cable systems with 2.8 million customers, for a total of 4.2 million customers to be served by the new venture. The joint - venture will be managed by Time Warner Cable and be two-thirds owned by Time Warner and one-third owned by Advance/Newhouse, a partnership of Newhouse Broadcasting and Advance Publications Inc. An executive committee with proportional representation from Time Warner and Advance Newhouse will oversee the joint venture. The transfer of the franchise to the Time Warner Entertainment-Advance/Newhouse partnership will have no effect on the ongoing local management of the cable system serving your community. - There will be no adverse impact on your cable system, or its customers, services, business practices or personnel. - The day-to-day management of the cable system in your community will remain the same. - Time Warner Cable will continue to direct the operations of the cable system under the cable television franchise. - Time Warner Cable will continue to exist as an operating division of TWE. - The same officers and managers of Time Warner Cable will continue to hold their current positions. 519 West State Street Ithaca, New York 14850 272-7875 In fact, we believe that the formation of the Time Warner Entertainment-Advance/Newhouse partnership will bring added strengths to Time Warner Cable and will assure a stronger, more technologically and creatively innovative and exciting cable television company which can only benefit our customers. Although the day-to-day operations and management control of Time Warner Cable will not change, City of Ithaca franchise may require City of Ithaca's approval of the transfer of the franchise to Time Warner- Entertainment-Advance/Newhouse partnership._ If you conclude= that such approval is required, we would appreciate the consideration and adoption of the accompanying form of resolution. We, of course, would appreciate the prompt adoption of such a resolution if you conclude that it is in fact necessary. If you have any questions or wish to discuss this matter, we will be happy to meet with you. Thank you for your cooperation. tmrd in rely, lGil"'/ (1�� . .& RayH. McCabe Area Manager cc: The Honorable Ben Nichols Ms. Jean Finley, Chair of the Cable Commission Ms. Pamela Mackesey Ms. Sara Shenk Ms. Diane Sams Mr. John Efroymson Mr. John Johnson Mr. Richard Booth Mr. John Schroeder Mr. Thomas Hanne Mr. Richard Gray Ms. Rochelle Thorpe RESOLUTION NO. WHEREAS, Time Warner Entertainment Company, L.P. ("TWE") is the holder of a franchise (the "Franchise") to provide cable television service for the of ; and WHEREAS, TWE with Advance Publications and Newhouse Broadcasting Corporation will create a new joint venture cable operation to be called Time Warner Entertainment - Advance/Newhouse Partnership; and WHEREAS, the joint venture will be managed by TWE and be two-thirds owned by TWE and one-third owned by Advance/Newhouse, a partnership of Newhouse Broadcasting and Advance Publications Inc. ; and WHEREAS, the Time Warner Entertainment - Advance Newhouse Partnership will be bound by the terms and conditions of the Franchise subject to applicable law. NOW THEREFORE, be it resolved that, insofar as may be necessary or advisable under the Franchise, transfer of the Franchise and the cable television system operating pursuant to the Franchise from TWE to Time Warner Entertainment - Advance/Newhouse Partnership (including any necessary transfers through one or more Time Warner entities) is hereby authorized and consented to in all respects. Passed this day of , 1994. ATTEST: [Mayor, City Council or other duly authorized signatory) Clerk Date CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14880 OFFICE OF TELEPHONE: (607)274-6504 CITY ATTORNEY MEMORANDUM FAX: (607)272-7348 TO: Dominick Cafferillo, Controller FROM: Chuck Guttman, City Attorney DATE: October 14, 1993 RE: Negotiations with ACC/Time Warner Cable We have concluded the negotiations with Time Warner Cable and are in the process of having a Memorandum of Understanding executed between the City and Time Warner Cable. This Memorandum of Understanding provides that, simultaneously with the execution of the agreement, certain payments shall be made to the City of Ithaca. While I do not have exact figures at this time as to what will be owing to the City (what will be paid to the City will depend on ACC's gross revenues and advertising revenues for 1992 and 1993) I would estimate that Time Warner would owe the City for 1992 and 1993 $29, 000. 00 more than would otherwise have been paid to the City. I would further estimate that the payments which the City would normally have expected to receive from Time Warner for 1994 should be increased by approximately $15, 000.00 as the result of this Memorandum of Understanding. If you need more specific information regarding this, please let me know. I have asked Time Warner to forward to me as soon as possible the exact numbers from which we calculate these figures more accurately. I will of course, forward them to you as soon as I receive them. "An Equal Opportunity Employer with an Affirmative Action Program" +i M' Recycled Paper T I M E W A R N E R C A B L E Ell % 0 2 - 1994 October 27, 1994 CITY CLERK'S OFFICE Ms. Callista Paolangeli, Clerk City of Ithaca City Hall 108 E. Green Street Ithaca, NY 14850 Dear Ms. Paolangeli: Please find enclosed herewith as required by the rules of the Federal Communications Commission ("FCC") a Form 394 pertaining to the proposed transfer of our franchise from Time Warner Entertainment Company, L.P. to the Time Warner Entertainment- Advance/Newhouse Partnership. A summary of the proposed transfer is attached for your information. Also, in accordance with the FCC rules, TWE does certify that the proposed transfer to Time Warner Entertainment-Advance/Newhouse Partnership is exempt from the three-year holding requirement of the Cable Act and Section 76.502 of the FCC rules for the following reasons: (1) the transfer is not subject to Federal income tax liability under the Federal Income Tax Code; and (2) the transfer of the Franchise to the Time Warner Entertainment-Advance/Newhouse Partnership is a transfer to a partnership controlled by TWE. Thank you for your prompt attention to this matter. If you should have any questions, please do not hesitate to contact me. ` V r truly yours, Ili-K Raymfond H. McCabe Area Manager cc: The Honorable Ben Nichols Ms. Jean Finley, Chair of the Cable Commission 519 West State Street Ithaca, New York 14850 272-7875 1 RESOLUTION NO. WHEREAS, Time Warner Entertainment Company, L.P. ("TWE") is the holder of a franchise (the "Franchise") to provide cable television service for the City of Ithaca; and ViHEREAS, TWE with Advance Publications and Newhouse Broadcasting Corporation will create a new joint venture cable operation to be called Time Warner Entertainment - Advance/Newhouse Publications inc.; and WHEREAS, the joint will be managed by TWE and be two-thirds owned by TWE and one-third owned by Advance/Newhouse, a partnership of Newhouse Broadcasting and Advance Publications inc.; and WHEREAS, the Time Warner Entertainment - Advance Newhouse partnership will be bound by the terms and conditions of the Franchise subject to applicable law. NOW THEREFORE, be it resolved that, insofar as may be necessary or advisable under the Franchise, transfer of the Franchise and the cable television system operating pursuant to the Franchise from TWE to Time Warner Entertainment-Advance/Newhouse Partnership(including any necessary transfers through one or more Time Warner entities) or subsequently to a partner thereof, is hereby authorized and consented to in all respects. Passed this day of , 1994. ATTEST: [Mayor, City Council or other duly authorized signatory] Clerk Date TWE-Advance/Newhouse Joint Venture Transaction Summary Formation;Partners: The joint venture(the "Venture")will be formed as a New York general partnership between TWE and Advance/Newhouse Partnership (a partnership between Newhouse Broadcasting Corporation and a subsidiary of Advance Publications, Inc.). Capital Contributions: TWE will contribute cable television systems serving approximately 2.8 million subscribers. Advance/Newhouse will contribute cable television systems serving approximately 1.4 million subscribers. Ownership Interests: TWE will own a 2/3 equity interest and Advance/Newhouse will own a 1/3 equity interest. Initially, the Venture will have no indebtedness for money borrowed (other than ordinary course working capital loans). Venture Management and Governance: TWE as Managing Partner will govern the day to day business and affairs of the Venture. Advance/Newhouse will have veto rights with respect to extraordinary matters, including: (i) merger, consolidation, liquidation or dissolution of the Venture, or sale of all or substantially all of the assets of the Venture; (ii) admission of new partners; (iii) significant acquisitions and dispositions of cable systems and other businesses; (iv) affiliated transactions other than on an arm's length basis; (v) capital calls. c1MArZWEWHWSLN RANMWM FRANCHISE Future Structure Advance/Newhouse Partnership 1/3 Time Warner Entertainment- Advance/Newhouse Franchise Authority Partnership a 2/3 Time Warner Entertainment Company,L.P. * TWE will own a 2/3 equity interest and Advance/Newhouse will own a 1/3 equity interest * TWE as Managing Partner will govern the day to day business and affairs of the Partnership * Advance/Newhouse will have veto rights with respect to certain extraordinary matters. See Transaction Summary FRANCHISE Present Structure TIME WARNER ENTERTAINMENT Franchise Authority COMPANY,L.P."TWE" 3 d ? t HE MM T GLOSSARY These are some common terms ;used when discussing public access. *Public access channel:A Phannel designated for non-com- mercial use by the public on a first-come,first-served,non-dis- 'criminatory basis.Channels 13 and 57. 2 Educational access:Channel Vsed by school district and not-for- profit educational institutions char- tered or licensed by the state Edu cation Department or Board of fpgents.Channel 54,ICN. ti. Government access channel: - t*nel used by municipal,coun- ty-and state government or related agiencies.Channel 53. dleased access:A commercial rp"annel available to the public, $ bject to somewhat stricter regu Iftions than public access,but "" Viso free from censorship.Chan- Uel 52. THE FAITHFUL'Dana Weston, a member of The cast every Monday night. 'It's a labor of love,'says ill Baptized Church of Jesus Christ of the Apostolic the cable access volunteer. k PEG access facilities Faith, directs the Rev. Ronald Benson's live broad- CPEGASYS,in Ithaca):Channels designated for public,educational tiesor governmental use and the facili �� ���� �� and equipment used for these productions. PEGASYS is avail- able free to all Tompkins County residents,age 18 and older. By FRANKLIN CRAWFORD educational or governmental use. "The definition of obscenity Journal Staff Beyond that,there are no standard changes from day to day. I think it `Get on the air O ahead,just try to censor a operating procedures for public would be a foolish exercise to set a access Television Center GACC'spublic access show.The law is access.Cable franchisees and munici- community standard,"he said."Who not in your favor. palities hammer out further details at would we be setting them for — the offers free video production and the bargaining table. city of Ithaca?For Tompkins County? training to county residents 14 Public access television is a rare Time Warner Cable in Ithaca has No one can define obscenity." exercise in pure democracy in which and older,to produce non-com- just about anything goes.Citizens of 60 channels. But under its franchise However,if a show clearly violates menial programming• this law-struck nation find that a little agreement with the city, it provides established laws,producers can be confusing. nine channels for public access. Five prosecuted through the district attor- There are two types of classes But public access is not regulated in of those channels are now used. nev's office. offered monthly:studio and any stria sense As for tackling the thorny issues of George Dentes,Tompkins County portable.Both require a training There is no authority —federal, indecency and obscenity on public District Attorney George Dentes said request fort,which you can get state or local —with the power to access,good luck. he has received several calls about at the address below.Getting on exercise editorial control over public Challenge a public access producer public.access shows,but no formal the air is also free of charge. access content. and you run smack into the First complaints. Scheduling is based on a first- Not even the cable companies— Amendment rights to freedom of Dentes said PEGASYS should come,first-served system. which provide public access channels, expression as guaranteed in the U.S. have a public archive."It's in the pub- facilities and equipment —have the Constitution. And there's no law lic interest,"he said."(Now)if some- 0 PEGASYS mailing address power to censor access programs. against flaunting your First Amend- body gets slandered over TV, the PEGASYS However,the FCC and the state ment rights. (slanderer)is allowed to utter it,take do Time Warner Cable have set broad guidelines on creation To some,that's the beauty—or the their tape and walk away." 519 W.State Street and operation of access stations. danger—of public access television. A provision in the 1992 Cable Act 272-7272 Public access channels are available Although the Supreme Court has sought to hold cable operators liable to all cable subscribers who receive ruled that obscenity laws are deter- for access programming that con- ■Hours of operation: basic service.Under the Cable Act of mined by community standards,those tained obscene,sexually explicit or Seven days a week,3 p.m.to 1984,a cable company with less than a standards are almost impossible to otherwise unlawful conduct. 11:30 p.m. 21-channel capacity must provide at define,said Chuck Guttman,attorney That law is now being challenged in least one full-time channel for public, for the Cityof Ithaca. federal court. The Ithaca Journal Saturday, January 14, 1995, • roc 111rt couldn't stop. , i public a By FRANKLIN CRAWFORD In 1976, a public access channel Journal Staff` was approved — one hour,once a N the mid-1950s, Ithacan Antho- week.No equipment.Maybe tapes of ny Cerrache had a vision.A televi- shows got played.Maybe not. sion to be exact. But by 1978, public access had a TV was a growth industry,and Cer- full-time, paid coordinator, Gossa rache wanted in on the action.The Tsegaye,one clunky camera and a lot problem? There wasn't any action of enthusiasm.The only restrictions: here. Upstate TV reception, if you Don't sell ads and don't incite to riot. got any,was abominably snowy. Although public access got a cold The answer: An experimental shoulder from the viewing public for broadcasting system called cable TV. its"amateur look", Richards said, it In 1958, the Cerrache Television was hot stuff from the start. Corp. was licensed, and Ithaca In 1979,a show called"Punk Out" became one of the first municipalities — outrageous,cutting edge,dark — in the United had Fall Creek residents fuming. States to get its "Then-alderman Ray Bordoni tubes tied to called me and asked me to take it off cable. the air,"said Tsegaye,who is now a In 1977, with television-radio instructor at Ithaca 17,000 area sub- College and garnered I1 Awards for scribers, Cer- Cable Excellence as a producer. "I rache sold his said,`I can't do that,Ray.Come and company to put a square dance show on after American Televi- Punk Out'if you want."' sion Communica- Then in 1985,a public access pro- gram produced by revisionist Michael tions, aDenver- T based company a Hoffman challenged the historical that was in tum purchased by Warner truth of the Holocaust and enraged Communications and became Ameri- many local residents. can Community Cablevision. In 1988 and '89,ACC renewed its Warner was later purchased by franchise agreement with the city.The Times-Mirror, and today we have PEGASYS facilities and equipment Time Warner Cable in Ithaca,with .on Green Street are a direct result of 26,000 subscribers and an estimated contract negotiations with Time- 67,000 viewers. Warner.The company must give 15 Shortly before he unloaded his percent of its channel capacity to cable firm,Cerrache was contending access — nine channels — five of with a relatively new phenomenon: which are used for access. Public access. In addition,Time Warner pays the To offset monopolies,state and cost of running PEGASYS, up to federal cable laws required fran- $180,000.The studio has grown from chisees to provide free access to their one full-time coordinator in 1978,to municipalities.Cerrache resisted and four full-time staff today. was cited for numerous violations. Despite ups and downs,local public Ithacan Mary Richards remembers access has produced many noteworthy the early days of a local organization programs — a fact that often gets called Community Access Interest obscured,said PEGASYS coordina= Group and its efforts to establish for Lauren Stefanelli.And the posi- access in Ithaca. tive potential of public access is large- "We were all pretty naive at that ly untapped. point of what we should have,"said "Access is a real civic opportunity,;' Richards,who had been involved in Stefanelli said."If you have an issue creating the nation's first public access that needs to reach a wider public, center in Reading,Pa.,in 1972."But we're here.You can use public access we knew enough to get it off the as a forum to inform and lobby the ground." public for a cause." T I M E W A R N E R C A B L E WE 0 12 - 1994 October 27, 1994 CITY CLERK'S OFFICE Ms. Callista Paolangeli, Clerk City of Ithaca City Hall 108 E. Green Street Ithaca, NY 14850 Dear Ms. Paolangeli: Please find enclosed herewith as required by the rules of the Federal Communications Commission ("FCC") a Form 394 pertaining to the proposed transfer of our franchise from Time Warner Entertainment Company, L.P. to the Time Warner Entertainment- Advance/Newhouse Partnership. A summary of the proposed transfer is attached for your information. Also, in accordance with the FCC rules, TWE does certify that the proposed transfer to Time Warner Entertainment-Advance/Newhouse Partnership is exempt from the three-year holding requirement of the Cable Act and Section 76.502 of the FCC rules for the following reasons: (1) the transfer is not subject to Federal income tax liability under the Federal Income Tax Code; and (2) the transfer of the Franchise to the Time Warner Entertainment-Advance/Newhouse Partnership is a transfer to a partnership controlled by TWE. Thank you for your prompt attention to this matter. If you should have any questions, please do not hesitate to contact me. V r truly yours, G� Ra nd H. McCabe Area Manager cc: The Honorable Ben Nichols Ms. Jean Finley, Chair of the Cable Commission 04 519 West State Street Ithaca, New York 14850 272-7875 RESOLUTION NO. WHEREAS, Time Warner Entertainment Company, L.P. ("TWE") is the holder of a franchise (the "Franchise") to provide cable television service for the City of Ithaca; and WHEREAS, TWE with Advance Publications and Newhouse Broadcasting Corporation will create a new joint venture cable operation to be called Time Warner Entertainment - Advance/Newhouse Publications inc.; and WHEREAS, the joint will be managed by TWE and be two-thirds owned by TWE and one-third owned by Advance/Newhouse, a partnership of Newhouse Broadcasting and Advance Publications inc.; and WHEREAS, the Time Warner Entertainment - Advance Newhouse partnership will be bound by the terms and conditions of the Franchise subject to applicable law. NOW THEREFORE, be it resolved that, insofar as may be necessary or advisable under the Franchise, transfer of the Franchise and the cable television system operating pursuant to the Franchise from TWE to Time Warner Entertainment-Advance/Newhouse Partnership(including any necessary transfers through one or more Time Warner entities) or subsequently to a partner thereof, is hereby authorized and consented to in all respects. Passed this day of , 1994. ATTEST: [Mayor, City Council or other duly authorized signatory] Clerk Date TWE-Advance/Newhouse Joint Venture Transaction Summary Formation;Partners: The joint venture(the "Venture")will be formed as a New York general partnership between TWE and Advance/Newhouse Partnership (a partnership between Newhouse Broadcasting Corporation and a subsidiary of Advance Publications, Inc.). Capital Contributions: TWE will contribute cable television systems serving approximately 2.8 million subscribers. Advance/Newhouse will contribute cable television systems serving approximately 1.4 million subscribers. Ownership Interests: TWE will own a 2/3 equity interest and Advance/Newhouse will own a 1/3 equity interest. Initially, the Venture will have no indebtedness for money borrowed(other than ordinary course working capital loans). Venture Management and Governance: TWE as Managing Partner will govern the day to day business and affairs of the Venture. Advance/Newhouse will have veto rights with respect to extraordinary matters, including: (i) merger, consolidation, liquidation or dissolution of the Venture, or sale of all or substantially all of the assets of the Venture; (ii) admission of new partners; (iii) significant acquisitions and dispositions of cable systems and other businesses; (iv) affiliated transactions other than on an arm's length basis; (v) capital calls. CWA9ZW EWHOWE\IRMSLSUM FRANCHISE Future Structure Advance/Newhouse Partnership 1/3 Time Warner Entertainment- Advance/Newhouse Franchise Authority Partnership - 2/3 Time Warner Entertainment Company,L.P. * TWE will own a 2/3 equity interest and Advance/Newhouse will own a 1/3 equity interest * TWE as Managing Partner will govern the day to day business and affairs of the Partnership * Advance/Newhouse will have veto rights with respect to certain extraordinary matters. See Transaction Summary FRANCHISE Present Structure TUV E WARNER ENTERTAINMENT Franchise Authority COMPANY,L.P."TWE' r