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21 AT&T RENEWAL 10-07-02
AGENDA REPORT NO. 21 10-07-02 MEETING DATE: OCTOBER 7, 2002 400-10 R=P TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION SUBJECT: MEDIA ONE/AT&T BROADBAND FRANCHISE RENEWAL SUMMARY The City is in the midst of franchise renewal proceedings with AT&T Broadband. City investigations have revealed deficiencies in various aspects of AT&T's operations and the City has not received adequate assurances from AT&T that corrective actions have or will be undertaken. In addition, the City has not received an adequate franchise renewal proposal. Based on the constraints of the Federal Telecommunications Act, staff is recommending the adoption of an urgency ordinance to extend the franchise until January 6, 2003 to provide additional time for AT&T to correct operational regulatory deficiencies. Once the operational and regulatory deficiencies are corrected, the City will be in a better position to evaluate the long term renewal of the franchise. RECOMMENDATION Staff recommends that the City Council accept Option 3 and adopt Urgency Ordinance No. 1259 extending a Cable Television Franchise with Media One of Los Angeles, Inc., dba AT&T Broadband franchise until January 6, 2003 FISCAL IMPACT The City collects franchise fees from cable system operators as compensation for the use of the Public Right of Way and to defray the costs of franchise administration. The operator pays 5% of the gross revenues from operations in Tustin. BACKGROUND The Communications Act of 1934, as amended by the Cable Communications Policy Act of 1984, the Cable Television Consumer Protection and Competition Act of 1992, and by the Telecommunications Act of 1996 (the "Cable Act") provides for the renewal of existing cable television franchises and authorizes the City to require a renewal proposal and to set deadlines. In 1992 and again in 1996 Congress and the President approved amendments to the Federal Telecommunication Act which fundamentally changed the way cable system companies operate and also changed the regulatory relationships between cable system operators, the Federal Communications Commission and state and local governments. The current relevant sections of the Telecommunications Act are attached as Exhibit A The Federal Telecommunications Act allows the City to manage the use of public right of way, ensure compliance with building and electrical codes, State PUC orders, and ensure compliance with FCC customer service standards. AT&T/Media One Franchise Renewal October 7, 2002 Page 2 The Act specifically forbids the City from regulating internet and telephony services, subscriber rates (except the basic, must carry tier), programming (except public, educational and government access channels) and cable system architecture and subscriber technology. The Act also identifies a very specific process for granting, renewing and revoking cable television franchises. Media One AT&T Franchise Renewal History On June 21, 1999, while considering a franchise renewal proposal from Cox Communications, the City Council adopted Resolution No. 99-49 to establish a uniform process for the consideration of cable television franchise renewals. On July 12, 1999, Media One requested that the City initiate renewal of its cable television franchise. In late 1999 Media One was acquired by AT&T and renamed AT&T Broadband. Media One remains the official legal entity. The City Council held a public hearing on May 1, 2000 to receive public testimony on the question of the renewal of AT&T/Media One's cable television franchise and to identify future cable-related community needs and interests, and to review Media One's past performance. Public testimony at the May 1, 2000 public hearing revealed that Media One had not resolved franchise compliance issues identified in a City notification letter dated November 11, 1999 and acknowledged by AT&T and Media One on December 1, 1999. Public testimony also revealed increasing customer dissatisfaction and complaints with Media One's service. Consequently, the City Council directed Media One to immediately respond to the numerous customer service complaints raised at the May 1, 2000 public hearing and also directed City staff to request that Media One submit a proposal for renewal of Media One's cable television franchise. The proposal was to addressing the following issues pertaining to the City's future cable-related needs and interests, and Media One's performance under the current franchise agreement: Future cable-related needs and interests: o Provide live coverage of City Council Meetings and a regularly scheduled rebroadcast at least 2 times, including 1 broadcast during a weekday prime time and 1 broadcast during the weekend, including transmission to the Cox Communications system; 2. Provide a full time local access channel dedicated to the City with coordinated or joint programming provided by Media One and Cox; 3. Provide assurances in the franchise agreement for payment of franchise fees for data/Internet services; 4. Explicitly agree to utilize current Federal Communications Commission ("FCC") requirements for customer service; AT&T/Media One Franchise Renewal October 7, 2002 Page 3 o Provide documentation, satisfactory to the City, of company customer service quality assurance efforts and of participation by all customer service staff in training 'in customer relations; 6. Subject the franchise agreement to future City ordinances and City Code amendments; 7. Provide free Internet access to City facilities, libraries, and schools in the Media One service area; 8. Agree to provide open Internet access in Tustin should it become available to any municipality in the State of California; . 10. Continue to maintain a local customer service office; Maintain a locally accessible television program production facilitY; 11. By June 30, 2003, upgrade the City Council television production facilities, as mutually agreed, for a minimum cost of $10,000 and a maximum cost not to exceed $25,000 for equipment and installation services; 12. Continue to provide qualified staff to provide production services for City Council meetings; 13. Become more involved with the community and provide programming and/or production services that are specifically tailored to the City's resident's interests. Media One submitted its proposal for renewal of its cable television franchise dated September 5, 2000, which failed to address issues identified by the City Council pertaining to the City's future cable-related needs and interests, and Media One's performance under the current franchise agreement The City Council held additional public meetings on October 16, 2000 and November 6, 2000 as a result of numerous additional complaints by City residents pertaining to Media One's compliance with its franchise, inCluding the issues noted in a City letter to AT&T letter dated November 11, 1999, and those raised at the May 1, 2000 public hearing. On November 20, 2000, the City Council conducted another public hearing and adopted Resolution 00-81 (attached as Exhibit B). Resolution 00-81 clarified that the City and AT&T were in an informal franchise renewal process and required AT&T to submit a. new franchise proposal and produce certain documents for inspection. Resolution 00-81 also authorized the non-renewal of Media One's franchise, if after adoption of a resolution containing a preliminary assessment that the City should not renew the franchise, and at the conclusion of administrative proceedings, the City Council could make adverse findings in reviewing any one of the following factors: AT&T/Media One Franchise Renewal October 7, 2002 Page 4 A. Whether the cable operator substantially complied with the material terms of the existing franchise and applicable law, and the City had provided the cable operator sufficient notice and an opportunity to cure any failure to comply; B. Whether the quality of the cable operator's service, including signal quality, response to consumer complaints, and billing practices, was reasonable in light of community needs, and the City provided the cable operator sufficient notice and an opportunity to cure any defects. In reviewing this factor, the City cannot consider the mix or quality of cable services or other services provided over the system (content); C. Whether the cable operator has the financial, legal, and technical ability to provide the services, facilities, and equipment as set forth in its proposal; D. Whether the cable operator's proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting, such needs and interests; and In order to ensure that the City could require AT&T to correct its customer service deficiencies, the City Council adopted the following measures to provide the City with adequate legal authority. · On October 1, 2001 The City Council adopted Ordinance 1245 amending the City Code to adopt FCC standards for customer service for cable TV subscribers. · On August 6, 2001, the City Council adopted resolution 01-81to provides formal notice to the FCC of the City's intent to enforce their customer service standards. On January 18, 2001, AT&T submitted a revised franchise proposal (Exhibit C). AT&T essentially denied the existence of any service problems and did not present any specific measures in the proposal to address the issues identified by the City. Staff has not acted further on this proposal as it is not responsive to the City's identified needs and interests. Staff has not conducted any follow-up negotiations with AT&T regarding their last proposal. In mid 2001 the City retained the services Telecommunications Management Corporation (TMC) to conduct a comprehensive review of AT&T Broadband's compliance with all City, State and Federal Regulatory requirements. The following reports were required in TMC's contract: , 2. 3. 4. Community Attitudes Toward Cable TV Franchise Compliance Audit Cable Television Franchise Fee Audit. Cable System Technical Audit - Physical and. Performance In early 2002, Telecommunications Management Corp. (TMC) submitted the reports required under their scope of work to review AT&T Broadband franchise compliance. All of the reports have been submitted and are attached as Exhibit D. A summary of the conclusions of each report follows: AT&T/Media One Franchise Renewal October 7, 2002 Page 5 Community Attitudes Toward Cable TV Survey Methodology A random sample of 402 AT&T subscribers conducted in late January 2002. Results 91% of the customers surveyed were "generally satisfied" with AT&T Broadband. Approximately 21% reported picture quality problems. 19% of subscribers indicated dissatisfaction with phone service. Conversely, of the 20% who have phoned AT&T in the past six months, only 4% reported problems receiving service. Only 3% of respondents indicated problems with subscriber equipment. Statistically, the weakest area for AT&T appears to be in the area of programming. Only 76% of subscribers surveyed were somewhat or very satisfied. The survey focused on local programming and this result likely indicates a desire for more coverage of local events and issues. Franchise Compliance Audit Methodology Review AT&T Broadband compliance with City Code, Cable Ordinance No. 1002, applicable Federal and State laws and regulations and industry practices. Results AT&T claims compliance with all franchise requirements, the City Code and Federal and State laws, and regulations. The City has disputed these contentions in a number of areas, primarily related to customer service. TMC has determined that AT&T's telephone response times did not meet FCC requirements for the Years 1999, 2000, and part of 2001. TMC also found that AT&T is not providing adequate notice to of its customer service performance as required by California Law. AT&T's requirement to resolve customer disputes via binding arbitration is not consistent with California Law and is illegal under Federal Law. Cable Television Franchise Fee Audit The audit indicates that AT&T may have under paid the City related to the incorrect application of the definition of gross revenues. TMC believes that AT&T may owe the City approximately $15,000 and an additional minor sum related to recovery of bad debt. Cable System Technical Audit It involves and extensive review of the physical plant and a performance test of the physical plant. The Kramer Firm, Inc, acting as a subcontractor to TMC performed these extensive inspections and revealed some of the most serious violations. The Kramer Firm offers the following finding and recommendations: AT&T/Media One Franchise Renewal October 7, 2002 Page 6 1. The physical plant condition of the underground system at and between vaults and pedestals (the mainline portions of the system) is in good to very good condition. 2. The physical plant condition of the underground system at the subscriber's (or ex-subscriber's) structure is in poor condition. 3. The Kramer Firm estimates that the percentage of subScriber drops (active and inactive) not grounded or not grounded to all of the NEC Section 820 requirements is 40% or more of the . total number of installed drops. 4. The Kramer Firm estimates the total number of code violations in this system to exceed 10,000. Their observations disclose that most locations exhibit multiple violations of various code sections. 5. The Kramer.Firm recommends that the City direct AT&T to inspect immediately all of its subscriber drops, and to make all necessary adjustments to those drops to bring them into compliance with all of the requirements of CPUC General Order 95, CPUC General Order 128, and the City's Municipal Code regarding construction and grounding. 6. The Kramer Firm does not believe that the work required can be performed in conjunction with AT&T's day-to-day installation, disconnection, and maintenance activities within the City. Rather, the violations observed strongly suggest that the field staff is either not properly trained to construct and/or maintain the system to meet the applicable safety code requirements, or that inadequate management controls do not detect and cause the violations to be cured. 7. The Physical Plant performance test indicated that the backbone AT&T system functions properly and well with acceptable industry standards Staff conducted further research on the subscriber history of AT&T in Tustin. Those findings are shown in the table below: Tustin Area AT&T Subscriber History AT&T 1996 1998 % 1999 % 2000 % 2001 % 2002 % Tustin 7,266 7,255 0% 6,885 -5% 6,943 1% 6,958 0% 6,327 -10% AT&T has experienced a loss of approximately 900 subscribers since 1998, when the system upgrade was commenced. The full survey results comparing Cox and AT&T service areas are attached as Exhibit E. It should be noted that Cox service in South Orange County is a relatively high growth area. AT&T/Media One Franchise Renewal October 7, 2002 Page 7 City Actions On June 4, 2002, staff sent three letters to AT&T (attached as Exhibit F) requiring action by AT&T to comply with City and regulatory requirements regarding the issues identified by Telecommunications Management Corporation. In addition, the City required AT&T to comply with City requirements regarding ownership transfers as it relates to AT&T's pending merger with Comcast. To date, the City has granted four franchise extensions for a total of 92 days to allow time for AT&T to respond to the corrective notices. AT&T Responses While AT&T has responded to all the City letters, the responses regarding the ownership transfer, franchise fees due to the City and the safety of the physical plant have not produced a resolution. AT&T's letters are attached to this report as Exhibit G. Two meetings with AT&T have also failed to result in a satisfactory response from AT&T. Conclusions While AT&T still contends it does not need City approval for its merger with Comcast, it has provided the City with a copy of the FCC form regarding transfers which the City intends to address at a future meeting. The franchise fee issue is still under review, and at this time, has not been resolved. As to the safety of the physical plant, AT&T failed to provide a plan for inspection and correction within 10 days of the June 4, 2002 Notice of Violation. AT&T has either denied a problem exists or sought to have the City agree to a "business as usual" program to address electrical problems. Staff has refused to accept this approach. On October 1, 2002, the City received a letter describing AT&T's intentions regarding inspection and maintenance of subscriber drops in the City. AT&T commits to inspecting the subscriber drops currently installed in its cable system and states it will, if necessary, perform work to bring the drops up to current code standards. AT& T says it will complete the work by December 31, 2002. AT&T's letter is incorporated into Exhibit F. While staff is encouraged by the change in AT&T's position, staff does not agree with AT&T's assumption the goal is substantial compliance (90%). Nor were subscriber drops the only electrical problems noted. In Staff's view, 100% compliance must be achieved. Further, staff does not agree with AT&T's statement that cable drops that have been altered by humans or natural forces are exempt from being corrected by AT&T. Staff stands by the TMC report. Except for AT&T's dislike for the report, no evidence has been presented that the report was inaccurate or misleading. Finally, AT&T's presumptive remarks about when City inspections may occur does not comply with the discussion AT&T representatives had with staff. Staff has made it very clear that the City had to be involved inspecting the work as it is occurring. Staff offered to work with AT&T on an inspection plan. AT&T has also attempted to link the plant safety issue to franchise negotiations. Staff believes there is no link whatsoever as public safety and code compliance is paramount. Accordingly, Staff finds AT&T's plan to address City requirements to inspect and correct its physical plant to be unacceptable. AT&T/Media One Franchise Renewal October 7, 2002 Page 8 Considering the totality of all of the issues identified above, staff offers the following options to the City Council for consideration: o RENEW THE FRANCHISE. Authorize Staff to initiate renewal negotiations for the franchise. Staff Comment: Staff reasonably believes that a significant number of electrical code violations exist in AT& T (Media One) installations. Until the entire system is inspected and violations are corrected to the satisfaction of the city, staff does not recommend this option. In addition staff believes that AT & T's response to customer service complaints is still inadequate. The City continues to receive complaints each week while receiving nil about Cox, the other cable TV provider. , DENY RENEWAL OF THE FRANCHISE. Authorize Staff to send notice to AT&T (Media One) of the City's intent to deny renewal of the Franchise (Federal Law requires advance notice to the franchisee). Staff Comment: the poor qualities of AT&T's (Media One) system and non-responsiveness have long plagued City customers. Customer service data from AT&T reviewed by the City's consultants for 2000 and a portion of 2001 showed that AT&T failed to meet FCC customer service.standards in responding to customer complaints. When AT&T switched to a digital- ready system the City was inundated with complaints about being placed on hold for long periods of time or having calls disconnected. AT&T's recently upgraded system has produced better signal quality and the backbone system meets FCC standards, but in the process of switching to the new system, AT& T failed its customers. Besides the poor telephone service, AT&T installers often missed appointments and often appeared untrained to customers. In summary, AT&T did not have enough adequately trained service representatives to handle the transition. In addition, AT&T did not adequately explain their new programming line-up and pricing, nor did' they adequately explain that the new converter boxes, required for digital, would make prior T.V. operations (recording programs, as just one example) difficult, if not impossible. The City estimates that approximately 900 customers left AT&T during the period from 1998 to the present (see attached chart). While customers that remain are generally satisfied (based on a survey conducted by a City Consultant), others remain dissatisfied with the required converter boxes per each TV., the lack of flexibility in recording shows, the new programming and pricing, and customer service. While complaints have diminished significantly in the past eight months, the City still gets a few complaints each week. Most of the complaints are either regarding issues not within the control of the City or are non specific and simply seek the ouster of AT&T. AT&T/Media One Franchise Renewal October 7, 2002 Page 9 Unfortunately, the City has no regulatory authority over programming, pricing, or the converter boxes. Congress has said the City cannot control these matters. In fact, Congress and the FCC are considering actions to force all T.V. viewers (whether by cable TV. or by satellite) to use digital technology. The industry itself is in somewhat of a quandary as to how to incorporate the new technologies into the next generation of devices (See attached LA TIMES article of 9-19-02). This is the technology that makes it more difficult to record programs and disables certain features on current televisions. The actions being considered, if passed, would require everyone.to get a new digital TV. Given, that Congress and the FCC who control the technology regulations are moving toward full deployment of digital before 2010, it is highly unlikely that any new cable TV provider would offer anything other than the current AT&T technology. In addition, a new provider would either have to build a new system alongside AT&T's or buy AT&T's existing system. The cost investment in either option would keep prices at current levels or could cause an increase in pricing. In summary, programming, pricing and the converter boxes are outside the City's control. The new digital-capable AT&T system is the wave of the future according to Congress and the FCC. Denial of renewal of the AT&T franchise is not a guarantee that customers will be pleased by a new provider, assuming one can be located. The City continues to be dissatisfied with AT&T's response to a Notice of Violation provided to AT&T in June of this year as to electrical code violations, largely in the grounding of its system. While AT&T eventually corrected 88 violations found by the City's consultant, AT&T has failed to respond in a timely fashion to the City's demand to prepare adequate plan to inspect and correct this type of problem in the entire system. , EXTEND THE CURRENT FRANCHISE UNTIL JANUARY 6, 2003 UNDER THE FOLLOWING CONDITIONS: a) IMMEDIATELY COMMENCE INSPECTION OF THE ENTIRE AT&T SYSTEM FOR ELECTRICAL VIOLATIONS NOTED IN THE CITY'S CONSULTANT'S REPORT AND JOINTLY DEVELOP WITH CITY STAFF A PLAN SATISFACTORY TO CITY STAFF FOR THE CORRECTION OF ALL SUCH VIOLATIONS THAT INCLUDES CITY INSPECTION TO VERIFY CORRECTIONS AS THE WORK IS PERFORMED, NOT AFTER ALL CORRECTIONS HAVE BEEN MADE. a) PROVIDE THE CITY WITH A REPORT BY JANUARY 1, 2003 OF ITS PROGRESS IN INSPECTING AND CORRECTING THE ENTIRE SYSTEM FOR GROUNDING PROBLEMS AND OTHER ELECTRICAL PROBLEMS IDENTIFIED IN THE CITY'S CONSULTANTS REPORT; AND b) PROVIDE A REPORT WITH SUPPORTING DATA FROM 2002 THAT AT&T IS IN FULL COMPLIANCE WITH FCC CUSTOMER SERVICE STANDARDS. c) IF AT&T DOES NOT COMPLY WITH THESE DIRECTIVES, THE CITY WILL COMMENCE WITH PROCEEDINGS TO DENY THE RENEWAL OF AT&T'S FRANCHISE AT&T/Media One Franchise Renewal October 7, 2002 Page 10 Staff Comment: The City does have control over compliance with the City's codes and enforcing FCC customer service standards. AT&T has been notified of electrical problems and has corrected those identified that were AT&T installations. AT&T has stated its intent to provide the City with a plan for inspection and correction of such problems. The city has informed AT&T that the entire system must be inspected. As to customer service, the City has no current AT&T data, although the City continues to receive minimal complaints on a weekly basis. A review of AT& T data from 2000 and portions of 2001 by the City's consultant showed that AT&T was not in compliance at that time. AT&T needs to provide a report to the City based on recent data that it is meeting FCC customer service standards adopted by the City. Based upon the constraints of the Telecommunications Act it is recommended that the City Council adopt Option 3. Tpium~bl.~toffCity En~-l~gineer Jo~ IV~yers, Servi{~es Manager, Ad~33J~istrative Public Works Department Exhibits: A. Telecommunications Act and FCC Fact Sheets B. City Council Resolution 00-81 C. January 18, 2001 AT&T franchise renewal proposal D. Telecommunications Management Corporation Franchise Compliance Reports 1) Community Attitudes Toward Cable TV 2) Franchise Compliance Audit 3) Cable Television Franchise Fee Audit. 4) Physical Plant Inspection Report E. County Cable TV Subscriber statistics F. City Compliance Letters G. AT&T response letters H. LA Times and NY Times Articles ORDINANCE NO. 1261 AN URGENCY ORDINANCE OF THE CITY OF TUSTIN, CALIFORNIA, EXTENDING A CABLE TELEVISION FRANCHISE WITH MEDIA ONE OF LOS ANGELES, INC., DBA AT&T BROADBAND UNTIL JANUARY 6, 2003. WHEREAS, Media One of Los Angeles, Inc., dba AT&T Broadband ("Media One") holds a non-exclusive cable television Franchise in the City of Tustin (the "City") as successor-in-interest to Continental Cablevision, Inc., pursuant to Ordinance No. 1002; and WHEREAS, Media One's Franchise expired July 6, 2002 pursuant to Section 4 of Ordinance No. 1002; and WHEREAS, the City granted an extension to Media One's Franchise on June 17, 2002 to expire on August 5, 2002 pursuant to Urgency Ordinance No. 1254; and WHEREAS, the City granted an extension to Media One's Franchise on August 5, 2002 to expire on September 5, 2002 pursuant to Urgency Ordinance No. 1256; and WHEREAS, the City granted an extension to Media One's Franchise on September 3, 2002 to expire on October 5, 2002 pursuant to Urgency Ordinance No. 1258; and WHEREAS, the City granted an extension to Media One's Franchise on September 16, 2002 to expire on October 7, 2002 pursuant to Urgency Ordinance No. 1259; and WHEREAS, the City has completed a thorough review of Media One's compliance with the Franchise, Municipal Code, State and Federal requirements and concluded that certain deficiencies require corrective action; and WHEREAS, the City has issued corrective notices to Media One and is awaiting a satisfactory response and; and WHEREAS, Tustin City Code § 7415(c)(6) provides that the City Council shall grant cable television Franchises by ordinance; and WHEREAS, this urgency ordinance is necessary for the immediate protection of the public health, welfare, and general safety in that the extension of Media One's Franchise is necessary to: regulate Media One's access to the public rights-of-way which may conflict with the public use thereof; insure correction of defective electrical connections to residential, commercial and industrial buildings; continue to provide local access channels for government and emergency information; regulate subscriber service; and insure accurate and complete franchise payments. Ordinance No. 1261 Page 2 THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. FRANCHISE EXTENSION. The cable television Franchise granted to Media One of Los Angeles, Inc., dba AT&T Broadband pursuant to Ordinance No. 1002 and extended for 2 days by Urgency Ordinance No. 1259 is hereby extended to expire on January 6, 2003. SECTION 2. URGENCY. This urgency ordinance is necessary for the immediate protection of the public health, welfare, and general safety in that the extension of Media One's Franchise is necessary to: regulate Media One's access to the public rights-of-way which may conflict with the public use thereof; insure correction of' defective electrical connections to residential, commercial and industrial buildings; continue to provide local access channels for government and emergency information; regulate subscriber service; and insure accurate and complete franchise payments. SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsection, subdivision, sentence, clause, phrase, or portions thereof be declared invalid or unconstitutional. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 7th day of October, 2002. Jeffery M. Thomas, Mayor Pamela Stoker City Clerk EXHIBIT A FEDERAL TELECOMMUNICATIONS ACT Communications Act of 1934 PART III--FRANCHISING AND REGULATION SEC, 621. [47 U.S.C. 541.] GENERAL FRANCHISE REQUIREMENTS. (a)(1) A franchising authority may award, in accordance with the provisions of this title, 1 or more fi'anchises within its jurisdiction; except that a franchising authority may not grant an exclusive franchise and may not unreasonably refuse to'award an additional competitive franchise. Any applicant whose application for a second franchise has been denied by a final decision of the franchising authority may appeal such final decision pursuant to the provisions of section 635 for failure, to comply with this subsection. (2) Any franchise shall be construed to authorize the construction of a cable system over public rights-of-way, and through easements, which is within the area to be served by the cable system and which have been dedicated for compatible uses, except that in using such easements the cable operator shall ensure-- (A) that the safety, functioning, and appearance of the property and the convenience and the safety of other persons not be adversely affected by the installation or construction of facilities necessary for a cable system; (B) that the cost of the installation, construction, operation, or removal of such facilities be borne by the cable operator or subscriber, or a combination of both; and (C) that the owner of the property be justly compensated by the cable operator for any damages caused by the installation, construction, operation, or removal of such facilities by the cable operator. (3) In awarding a franchise or franchises, a franchising authority shall assure that access to cable service is not denied to any group of potential 'residential cable subscribers because of the income of the residents of the local area in which such group resides. (4) In awarding a franchise, the franchising authority-- (A) shall allow the applicant's cable system a reasonable period of time to become Capable of providing cable service to all households in the franchise area; (B) may require adequate assurance that the cable operator will provide adequate public, educational, and governmental access channel capacity, facilities, or financial support; and (C) may require adequate assurance that the cable operator has the financial, technical, or legal qualifications to provide cable service. (b)(1) Except to the extent provided in paragraph (2) and subsection (f), a cable operator may not provide cable service without a franchise. (2) Paragraph (1) shall not require any person lawfully providing cable service without a franchise on July 1, 1984, to obtain a franchise unless the franchising authority so requires. 268 Communications Act of 1934 (3)(A) If a cable operator or affiliate thereof is engaged in the provision of telecommunications services-- (i) such cable operator or affiliate shall not be required to obtain a . franchise under this title for the provision of telecommunications services; and (ii) the provisions of this title shall not apply to such cable operator or affiliate for the provision of telecommunications services. (B) A. franchising authority may not impOse any requirement under this title that has the purpose or effect of prohibiting, limiting, restricting, or conditioning the provision of a telecommunications service by a cable operator or an affiliate thereof. (C) A franchising authority may not order a cable operator or. affiliate thereof-- (i) to discontinue the provision of a telecommunications service, or (ii) to discontinue the operation of a cable system, to the extent such cable system is used for the provision of a telecommunications service, by reason of the'failure, of such cable operator or' affiliate thereof to obtain a franchise or franchise renewal under this title with respect to the provision of such telecommunications service. (D) Except as otherwise permitted by sections 611 and 612, a franchising authority may not require a cable operator to provide any telecommunications service or facilities, other than institutional networks, as a condition ofthe initial grant of a franchise, a franchise renewal, or a transfer of a franchise. (c) Any.cable system shall not be subject to regulation as a common carrier or utility by reason of providing any cable service. (d)(1) A State or the Commission may require the filing of informational tariffs for any intrastate communications service provided by a cable system, other than cable service, that would be subject to regulation by the Commission or any State if offered by a common carrier subject in whole or in part, to title.II of this Act. Such informational tariffs shall specify the rates, . terms, and conditions for the provision of such service, including whether it is made available to all subscribers generally, and shall take effeCt on the .date specified therein. (2) Nothing in this title shall be construed to affect the authority of any State to regulate any cable operator to the extent that such operator provides any communication service other than cable service, whether offered on a common carrier or private contract basis. (3) For purposes of this subsection, the term "State" has the meaning given it in section 3. (e) Nothing in this title shall be construed to affect the authority of any State to license or otherwise regulate any facility or combination of facilities which serves only subscribers in one or more multiple unit dwellings under common ownership, control, or management and which does not use any public right-of-way. 269 Communications Act of 1934 (f) No provision of this Act shall be construed to-- (l) prohibit a local or municipal authority that is also, or is affiliated with, a franchising authority from operating as a multichannel video programming distributor in the franchise area, notwithstanding the granting of one or more franchises by such franchising authority; or (2) require such local or municipal authority to secure, a franchise to operate as a multichannel video programming distributor. · SEC. 622. [47 U.S.C. 542] FRANCHISE FEES. (a) Subject to the limitation of subsection (b), any cable operator may be required under the terms of any franchise to pay a franchise fee. (b) For any twelve-month period, the franchise fees paid by a cable operator with respect to any cable system shall not exceed 5 percent of such cable operator's gross revenues derived in such period from the operation of the cable system to provide cable services. For purposes of this section, the 12-month period shall be the 12-month period applicable under the franchise for accounting purposes. Nothing in this subsection'shall prohibit a franchising authority and a cable operator from agreeing that franchise fees'which lawfully could be collected for any such 12-month period shall be paid on a prepaid or deferred basis; except that the sum of the fees paid during the term of the franchise may not exceed the amount, including the time value of money, which would have lawfully been collected if such fees had been paid per annum. (c) Each cable operator may identify, consistent With the regulations prescribed by the Commission pursuant to section 623, as a separate line item on each regular bill of each subscriber, each of the following: (1) The amount of the total bill assessed as a franchise fee and the identity of the franchising authority to which the fee is paid. (2) The amount of the total bill assessed to satisfy any requirements imposed on the cable operator by the franchise agreement to support public, educational, or governmental channels or the use of such channels. (3) The amount of any'other fee, tax, assessment, or charge of any kind imposed by any governmental authority on the transaction between the operator and the subscriber. (d) In any court.action under subsection (c), the franchising authority shall demonstrate that the rate structure reflects all costs of the franchise fees. (e) Any cable operator shall pass through to subscribers the amount of any decrease in a franchise fee. (f) A cable operator may designate that portion of a subscriber's bill attributable to the franchise fee as a separate item on the bill. (g) For the pUrPoses of this section-- (1) the term "franchise fee" includes any tax, fee, or. assessment of any kind imposed by a franchising authority or other governmental entity 270 Communications Act of 1934 entity or entities whose gross annual revenues in the aggregate exceed $250,000,000. (n) TP`E^TMENT OF P}~IOP` YE^P, LossEs.--Notwithstanding any other provision of this section or of section 612, losses associated with a cable system (including losses associated with the grant or award of a franchise) that were incurred prior to September 4, 1992, with respect to a cable system that is owned and. operated by the original franchisee of such system shall not be disallowed, in whole or in part, in the determination of whether the rates for any tler of service or any type of equipment that is subject to. regulation under this section are lawful. SEC. 624. [47 U.S.C. 544] REGULATION OF SERVICES, FACILITIES, AND EQUIPMENT. (a) Any franchising authority may not regulate the services, facilities, and equipment provided by a cable operator except to. the extent consistent with this title. (b) In the case of any franchise granted after the effective date of this title, the franchising authority, to the extent related to the establishment or operation of a cable system-- · (1) in its request for proposals for a franchise (including requests for renewal proposals, subject to section 626), may establish requirements for facilities and equipment, but may not, except as provided in subsection (h), establish requirements for video programming or other information services; and (2) subject to section 625, may enforce any requirements contained within the franchise-- (A) for facilities and equipment; and (B) for broad categories of video programming or other services. (c) In the case of any franchise in effect on the effective date of this title, the franchising authority may, subject to section 625, enforce requirements contained within the franchise for the provision of services, facilities, and equipment, whether or not related to the establishment or operation of a'cable system. (d){ 1) Nothing in this title shall be construed as prohibiting a franchising authority and a cable operator from specifying, in a franchise or renewal thereof, that certain cable services shall not be provided or shall be provided subject to conditions, if such Cable services are obscene or are otherwise unprotected by the Constitution of the United States. (2) In order to restrict the viewing of programming which is obscene or indecent, upon the request of a subscriber, a cable operator shall provide (by sale or lease) a device by which the subscriber can'prohibit viewing of a particular cable service during periods selected by that subscriber. (3)(A) If a cable operator provides a premium channel without charge to 281 Communications Act of 1934 cable subScribers Who do not subscribe to such premium channel, the cable operator shall, not later than 30 days before such premium channel is provided without charge-- (i) notify all cable subscribers that the cable operator plans to provide a premium channel Without charge; (ii) notify all cable subscribers when the cable operator plans to offer a premium channel without charge; (iii) notify all cable subscribers that they have a right to request. that the channel carrying the premium channel be blocked; and (iv) block the channel carrying the premium channel upon the request of a subscriber. (B) For the purpose of this section, the term "premium channel" shall mean any pay service offered on a per channel or per program basis, which offers movies rated by the Motion Picture Association of America.as X, NC-17, or R. (e) Within one year after the date of enactment of the Cable Television Consumer Protection and Competition Act of 1992, the Commission shall prescribe regulations which establish minimum technical standards relating to cable systems' technical operation and signal quality. The Commission shall update such standards periodically to reflect improvements in technology. No State or franchising authority.may prohibit, condition, or restrict a cable system's use of any type of subscriber equipment or any transmission technology. (f)(1) Any Federal agency, State, or franchising authority may not impose requirements regarding the provision or content of cable services, except as expressly provided in this title. (2) Paragraph (1) shall not apply to-- (A) any rule, regulation, or order issued under any Federal law, as such rule, regulation, or order (i) was in effect.on September 21, 1983, or (ii) may be amended after such date if the rule, regulation, or order as amended is not inconsistent with the express proviSions of this title; and (B) any rule, regulation, or order under title 17, United States Code. (g) Notwithstanding any such rule, regulation, or order, each cable operator shall comply with such standards as the Commission shall prescribe to ensure that viewers of video programming on cable systems are afforded the same emergency information as is afforded by the emergency broadcasting system pursuant to Commission regulations in subpart G of part 73, title 47, Code of Federal Regulations. (h) A franchising authority may require a cable operator to do any one or more of the following: (1) Provide 30 days' advance written notice of any change in channel assignment or in the video programming service provided over any such channel. (2) Inform subscribers, via written notice, that comments on 282 Communications Act of 1934 programming and channel position changes are being recorded by a designated office of the franchising authority. (i) Within 120 days after the date of enactment of this subsection, the Commission shall prescribe rules concerning the disposition, after a subscriber to a cable system terminates service, of any cable installed by the cable operator within the premises of such subscriber. SEC. 624A. [47 U.S.C. 544a] CONSUMER ELECTRONICS EQUIPMENT COMPATIBILITY. (a) FINDINGS.--The Congress finds that-- (1) new'and recent models of television receivers and video cassette recorders often contain premium features and functions that are disabled or inhibited because of cable scrambling, encoding, or encryption technologies and devices, including converter boxes and remote control devices required by cable operators to receive programming; (2) if these problems are allowed to persist, consumers will be less likely to purchase, and electronics equipment manufacturers will be less likely to develop, manufacture, or offer for sale, television receivers and video cassette recorders with new and innovative features and functions; (3) cable operators should use technologies that will prevent signal thefts while permitting consumers to benefit from such features and functions in such receivers and recorders; and (4) compatibility among televisions, video cassette recorders, and cable systems can be assured with narrow technical standards that mandate a minimum degree of common design and operation, leaving all features, functions, protocols, and other product and service options for selection through open competition in the market. (b) COMPATIBLE INTERFACES.-- (1) REPORT; REGULATIONS.--Within 1 year after the date of enactment of this section, the Commission, in consultation with representatives of the cable industry and the consumer electronics industry, shall report to Congress on means of assuring compatibility between televisions and video cassette recorders and cable systems, consistent with the need to prevent theft of cable service, so that cable subscribers will be able to enjoy the full benefit of both the programming available on cable systems and the functions available on their televisions and video cassette recorders. Within 180 days after the date of submission of the report required by this subsection,' the Commission shall issue such regulations as are necessary to assure such compatibility. (2) SCRAMBLING AND ENCRYPTION.--In issuing the regulations referred to in paragraph (1), the Commission shall determine whether and, if so, under what circumstances to permit cable systems to scramble or 283 CommunicatiOns Act of 1934 encrypt signals or to restrict cable systems in'the manner in which they encrypt or scramble signals, except that the Commission shall not limit the use of scrambling or encryption technology where the use of such technology does not interfere with the functions of subscribers! television receivers or video cassette recorders. (C) RULEMAKING REQUIREMENTS.-- (1) FACTORS TO BE CO~SIDE}~£D.--In prescribing the regulations required by this section, the Commission shall consider-- (A) the need to maximize open competition in the market for all features, functions, protocols, and other product and service options of converter boxes and other cable converters unrelated to the descrambling or decryption of cable television signals; (B) the costs and benefits to-consumers of imposing compatibility requirements on cable operators and television manufacturers in a manner that, while providing effective protection against theft or unauthorized reception of cable service, will minimize interference with or nullification of the special functions of subScribers' television receivers or video cassette recorders, including functions that permit the subscriber-- (i) to watch a program on one channel while simultaneously using a video cassette recorder to tape a program on another channel; (ii) to use a video cassette recorder to tape two consecutive programs that appear on different channels; and (iii) to use advanced television picture generation and display features; and (C) the need for cable operators to protect the integrity of the signals transmitted by the cable operator against theft or to protect such signals against unauthorized reception. (2) Regulations required.--The regulations prescribed by the Commission under this section shall include such regulations as are necessary-- (A) to specify' the technical requirements with which a television receiver or video cassette recorder must comply in order to be sold as "cable compatible" or "cable ready"; (B) to require cable operators offering channels whose reception requires a converter box-- (i) to notify subscribers that they may be unable to benefit .from the special functions of their television receivers and video cassette recorders, including functions that permit subscribers-- (I) to watch a program on one channel while 284 Communications Act of 1934 simultaneously using a video cassette recorder to tape a program on another channel; (II) to use a video cassette recorder to tape two consecutive programs that appear °n different channels; and (III) to use advanced television picture generation and display features; and (ii) to the extent technically and eConomically feasible, to offer subscribers the option of having all other channels delivered directly to the subscribers' television receivers or video cassette recorders without passing through the converter box;, (C) to promote the commercial availability, from cable operators and retail vendors that are not affiliated with cable systems, of converter boxes and of remote control devices compatible with converter boxes; (D) to ensure that any standards or regulations developed under the authority of this section to ensure compatibility between televisions, video cassette recorders, and cable systems do not affect features, functions, protocols, and other product and service options other than those specified in paragraph (1)(B), including telecommunications interface equipment, home automation communicatiOns, and computer network services; (E) to require a cable operator who offers subscribers the option of renting a remote control unit-- (i) to notify subscribers that they may purchase a commercially available remote control device from any source that sells such devices rather than renting it from the cable operator; and (ii) to specify the types of remote control units that are compatible with the convener box supplied by the cable operator; and (F) to prohibit a cable operator from taking any' action that · prewents or in any way disables the converter box supplied by the cable operator from operating compatibly with commercially available remote control units. (d) REvIEw OF REGUL^TIONS.--The Commission shall periodically review and, if necessary, modify the regulations issued pursuant to this section in light of any actions taken in response to such regulations and to reflect improvements and changes in cable systems, television receivers, video cassette recorders, and similar technology. SEC. 625. [47 U.S.C. 545] MODIFICATION OF FRANCHISE 285 Communications Act of 1934 OBLIGATIONS. (a)(1) During the period a .franchise is in effect, the cable operator may · obtain from the franchising authority modifications of the requirements in such franchise-- (A) in the case of any such requirement for facilities or equipment, including public, educational, or governmental access facilities or equipment, if the cable operator demonstrates that (i) it is commercially impracticable for the operator to comply with such requirement, and (ii) the proposal by the cable operator for modification of such requirement is appropriate because of commercial impracticability; o'r (B) in the case of any such requirement for services, if the cable operator demonstrates that the mix, quality, and level of services required by the franchise at the time it was granted will be maintained after such modification. (2) Any final decision by a franchising authority under this subsection shall be made in a public proceeding. Such decision shall be made within 120 days after receipt of such request by the franchising authority, unless such 120- day period is extended by mutual agreement of the cable operator and the franchising authority. (b)(1) Any cable operator whose request for modification under subsection (a) has been denied by a final decision of a franchising authority may obtain modification of such franchise requirements, pursuant to the provisions of section 635.. (2) In the case of any proposed modification of a requirement for faCilities or equipment., the 286 SEC. 626. [47 U.S.C. 546] RENEWAL. (a)(1) A franchising authority may, on its own initiative during the d- month period which begins with the 36th month before the franchise expiration, commence a proceeding which affords the public in the franchise area appropriate notice and participation for the purpose of (A) identifying the future cable-related - community needs and interests, and (B) reviewing the performance of the Cable operator under the franchise during the then current franchise term. If the cable operator submits, during such 6-month period, a written renewal nOtice requesting the commencement of such a proceeding, the franchising authority shall commence such a proceeding not later than 6 months after the date such notice is submitted. (2) The cable operator may not invoke the renewal procedures set forth in subsections (b) through (g) unless-- (A) such a proceeding is requested by the cable operator by timely submission of such notice;, or (B) such a proceeding is commenced by the franchising authority on its own initiative. (b)(1) Upon completion of a proceeding under subsection (a), a cable operator seeking renewal of a franchise may, on its own initiative or at the request of a franchising authority, submit a proposal for renewal. (2) Subject to section 624, any such proposal shall contain such material as the franchising authority may require, including proposals for an upgrade of the cable system. (3) The franChising authority may establish a date by which such proposal shall be submitted. (c)(1) Upon submittal by a cable operatOr of a proposal to the franchising authority for the renewal of a franchiSe pursuant to subsection (b), the franchising authority shall provide prompt public notice of such proposal and, during the 4_ month period which begins on the date of the submission of the cable operator's proposal pursuant to subsection (b), renew the franchise.or, issue-a preliminary assessment that the franchise should not be renewed and, at the request of the operatOr or on its own initiative, commence an administrative proceeding, after providing prompt public notice of such proceeding, in accordance with paragraph (2) to consider whether-- (A) the cable operator has substantially complied with the material terms of the existing franchise and with applicable law; (B) the quality of the operator's service, including signal quality, response to consumer complaints, and billing practices, but without regard to the mix or quality of cable services or other services provided over the system, has been reasonable in light of community needs; (C) the operator has the financial, legal, and technical ability to provide the services, facilities, and equipment as set forth in the operator's proposal; and (D) the operator's prOposal is reasonable to meet the future cable- related community needs and interests, taking into account the cost of meeting such needs and interests. (2) In any proceeding under paragraph (1), the cable operator shall be afforded adequate notice and the cable operator and the franchise authority, or its designee, shall be afforded fair opportunity for full participation, including the right to introduce evidence (including evidence related to issues raised in the proceeding under subsection (a)), to require the production of evidence, and to question witnesses. A transcript shall be made of any such proceeding. (3) At the completion of a proceeding under this subsection, the franchising authority shall issue a written decision granting or denying the proposal for renewal based upon the record of such proceeding, and transmit a copy of such decision to the cable operator. Such decision shall state the reasons therefor. (d) Any denial of a proposal for renewal that has been submitted in compliance with subsection (b) shall be based on one or more adverse findings made with respect to the factors described in subparagraphs (A) through (D) of subsection (c)(1), pursuant to the record of the proceeding under subsection (c). A franchising authority may not base a denial of renewal on a failure to substantially comply with the material terms of the franchise under subsection (c)(1)(A) or on events considered under subsection (c)(1)(B) in any case in which a violation of the franchise or the events considered under subsection (c)(1)(B) occur after the effective date of this title unless the franchising authority has provided the operator with notice and the opportunity to cure, or in any case in which it is documented that the franchising authority has waived its right to object, or the cable operator gives written notice of a failure or inability to cure and.the franchising authority fails to object within a reasonable time after receipt of such notice.. (e)(1) Any cable operator whose proposal for renewal has been denied by a final decision of a franchising authority made pursuant to this section, or has been adversely affected by a failure of the franchising authority to act in accordance with the procedural requirements of this section, may appeal such final decision or failure pursuant to the provisions of section 635. (2) The court shall grant appropriate relief if the court finds that-- (A) any action of the franchising authority, other than harmless error, is not in compliance with the procedural requirements of this section; or (B) in the event of a final decision of the franchising authority denying the renewal proposal, the operator has demonstrated that the adverse finding of the franchising authority with respect to each of the factors described in subparagraphs (A) through (D) of subsection (c)(1) on which the denial is based is not supported by a preponderance of the evidence, based on the record of the proceeding conducted under subsection (c). (f) Any decision of a 'franchising authority on a proposal for renewal shall not be considered final unless all administrative review by the State has occurred or the opportunity therefor has lapsed. (g) For purposes of this section, the term "franchise expiration" means the date of the expiration of the term of the franchise, as provided under the franchise, as it was in effect on the date of the enactment of this title. (h) Notwithstanding the provisions of subsections (a) through (g) of this section, a cable operator may submit a proposal for the renewal of a franchise pursuant to this subsection at any time, and a franchising authority may, after affording the public adequate notice and opportunity for comment, grant or deny such proposal at any time (including after proceedings pursuant to this section have commenced). The provisions of subsections (a) through (g) of this section shall not apply to a decision to grant or deny a proposal under this subsection. The denial of a renewal pursuant to this subsection shall not affect action on a renewal proposal that is submitted in accordance with subsections (a) through (g). (i) Notwithstanding the provisions of subsections (a) through (h), any lawful action to revoke a cable operator's franchise for cause shall not be negated by the subsequent initiation of renewal proceedings by the cable operator under this section. programming content on non-cable channels. If you object to programming on a cable system, you may contact the FCC to determine what rules may be applicable and what action may be appropriate. You may always contact the FCC for assistance in understanding cable regulations. The following telephone numbers and addresses may prove helpful: · You may write to the Federal Communications Commission, General Cable Inquiries, 445 12th Street, S.W., Washington, D.C. 20554. · You may call our Fax on Demand system to obtain copies of certain fact sheets and Commission information. The Fax on Demand number is (202) 418-2830 · You may call the Commission at 1-888-225-2322 to have fact sheets describing various aspects of cable regulations mailed to you or to ask questions. · You may access recent Commission decisions regarding cable regulations via Internet. The FCC's Internet addresses are: World Wide Web site: http:llwww.fcc.,qovl FTP site: ftp.fcc.~ov (log on as anonymous, address as password) Gopher site: _(3opher.fcc.~ov. use your e-mail · You may purchase copies of the Commission's cable regulations and the Communications Act through International Transcription Service, (202) 857-3800. You may also contact your local and state consumer protection organizations for assistance in understanding your rights and responsibilities as a cable subscriber. Finally, cable systems with 1,000 or more subscribers are required to maintain certain documents in a public inspection file. These documents include a political programming file; sponsorship identification; EEO reports; commercial records for children's programming; leased access requirements; proof-of-performance tests; and signal leakage and repair logs. These are available for public inspection and copying. In addition, systems must have a current copy of Part 76 of the Commission's rules, which cover cable television. EXHIBIT B CITY COUNCIL RESOLUTION 00-81 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 00-81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ESTABLISHING THE CITY'S PRELIMINARY ASSESSMENT THAT THE CITY SHOULD NOT RENEW THE CABLE TELEVISION FRANCHISE OF MEDIA ONE OF LOS ANGELES, INC., D.B.A. AT&T BROADBAND; REQUIRING THE PRODUCTION OF SERVICE LOGS; REQUESTING A REVISED OR NEW PROPOSAL FROM MEDIA ONE WITHIN 60 CALENDAR DAYS OF THE DATE OF THIS RESOLUTION AND SUSPENDING THE PROVISIONS OF RESOLUTION NO. 99-49 WHEREAS, Media One of Los Angeles, Inc., al.b.a. AT&T Broadband ("Media One" holds a non-exclusive Cable television franchise in the City of Tustin (the "City") successor-in-interest to Continental Cablevision, Inc.; and WHEREAS, Media One's franchise expires July 6, 2002; and WHEREAS, the Communications Act of 1934, as amended by the Cabl6 Communications Policy Act of 1984, the Cable Television Consumer Protection anc Competition Act of 1992, and by the Telecommunications Act of 1996 (the "Cable Act"i provides for the renewal of existing cable television franchises and authorizes the City tc require a renewal proposal and to set deadlines therefor; and WHEREAS, on June 21, 1999, the City Council adopted Resolution No. 99-49 tc establish a uniform process for the consideration of cable television franchise renewals; and WHEREAS, on July 12, 1999, Media One requested that the City initiate renewal of its cable television franchise; and WHEREAS, on August 23, 1999, the City notified Media One that it would proceed with the franchise renewal process pursuant to Resolution No. 99-49; and WHEREAS, pursuant to Resolution No. 99-49 the City Council held a public hearing on May 1, 2000 to receive public testimony on the question of the renewal of Media One's cable television franchise and to identify future cable-related community needs and interests, and to review Media One's past performance; and WHEREAS, public testimony at the May 1, 2000 public hearing revealed that Media One had not resolved franchise compliance issues identified in a City notification letter dated November 11, 1999 and acknowledged by AT&T and Media One on December 1, 1999; and WHEREAS, public testimony at the May 1, 2000 public hearing revealed increased customer dissatisfaction and complaints with Media One's service; and WHEREAS, the City Council directed Media One to immediately respond to the numerous customer service complaints raised at the May 1,2000 public hearing and directed City staff to request that Media One submit a proposal for renewal of Media One's cable television franchise addressing the following issues pertaining to the City's future cable- related needs and interests, and Media One's performance under the current franchise agreement: 1 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 FUTURE CABLE-RELATED NEEDS AND INTERESTS: 1. Provide live coverage of City Council Meetings and a regularly scheduled rebroadcast at least 2 times, including 1 broadcast during a weekday prime time and 1 broadcast during the weekend, including transmission to the Cox Communications system; 2. Provide a full time local access channel dedicated to the City with coordinated or joint programming provided by Media One and.Cox; 3. Provide assurances in the franchise agreement for payment of franchise for data/Intemet services; 4. Explicitly agree to utilize current Federal Communications Commission ("FCC") requirements for customer service; 5. Provide documentation, satisfactory to the City, of company customer service quality assurance efforts and of participation by all customer service staff in training in customer relations; 6. Subject the franchise agreement to future City ordinances and City Code amendments; 7. Provide free [ntemet access to City facilities, libraries, and schools in the Media One service area; 8. Agree to provide open Internet access in Tustin should it become available to any municipality in the State of California; 9. Continue to maintain a local customer service office; 10. Maintain a locally accessible television program production facility; 11. By June 30, 2003, upgrade the City Council television production facilities, as mutually agreed, for a minimum cost of $10,000 and a maximum cost ne~- tc exceed $25,000 for equipment and installation services; 12. Continue to provide qualified staff to provide production services for Council meetings; 13. Become more involved with the community and provide programming and/ol production services that are specifically tailored to the City's residents interests ISSUES PERTAINING TO MEDIA ONE'S PERFORMANCE UNDER THE CURREN'I FRANCHISE: 1. Frequent and prolonged television service interruptions; 2. Rudeness and indifference displayed by Media One customer servic~ representatives; 3. Customer service staff not knowledgeable about products and procedures; 4. Telephone service calls not answered or answered by a recording only; -2- 1 2 3 4 5 6 7' 8 9 ~0 ~2 ~3 "14 ~5 '16 ~7 ~8 ~9 20 2~ 22 23 24 25 26 27 28 '"~ I~ MEDIA 5. Long hold times for calling customers; 6. Service staff failing to respond to scheduled on-site technical se~,ice calls; Various customer billing issues (i.e. high rates, Iow service levels, billing errors); 8. Limited channel/programming offerings; 9. Broadband lnternet service not available; and WHEREAS, Media One submitted its proposal for renewal of its cable television franchise dated September 5, 2000, which fails to address issues identified by the City Council pertaining to the City's future cable-related needs and interests, and Media One's performance under the current franchise agreement. A copy of Media One's transmittal letter and proposal is attached hereto as E×hibit "A" and is incorporated herein by this reference; - and 'WHEREAS, the transmittal letter accompanying Media One's proposal acknowledges the customer service concerns expressed by the City Council at its May 1,2000 meeting, yet fails to disclose the processes that Media One is employing to address the concerns. Instead, the transmittal states, "1 would also like to request an opportunity to discuss in more detail the processes that AT&T Broadband will employ to address the customer service 'concerns that were expressed by the City Council;" and WHEREAS, Resolution No. 99-49 authorizes the non-renewal of Media One's franchise if after adoption of a resolution containing a preliminary assessment that the City should not renew the franchise, and at the conclusion of administrative proceedings, the City Council makes adverse findings in reviewing any one of the following factors: A. Whether the cable operator substantially complied with the material terms of the existing franchise and applicable law, and the City provided the cable operator sufficient notice and an opportunity to cure any failure to comply; B. Whether the quality of the cable operator's service, including signal · quality, response to consumer complaints, and billing practices, was reasonable, in light of community needs, and the 'City provided the cable operator sufficient notice and an opportunity to cure any defects. In reviewing this factor, the City cannot consider the mix or quality of cable services or other services provided over the system (content); C. Wheth'er the cable operator has the financial, legal, and technical ability to provide the services, facilities, and equipment as set forth in its proposal; D. Whether the cable operator's proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests; and WHEREAS, the City Council held public meetings on October 16, 2000 and November 6, 2000 as a result of numerous additional complaints by City residents pertaining to Media One's compliance with its franchise, including the issues noted in the City's letter dated November 11, 1999, and those raised at the May 1, 2000 public heating; and -3- 1 2 3 4 5 6 7 8 9 !0 11 12 13 14 I5 16 17 18 19 20 21 22 23 ~4 25 26 27 28 :TIN MEDIA · . WHEREAS, Media One's franchise, Ordinance 1002, requires Media One to comply with the following standards: Paragraph 16, level of service: "Franchisee shall use its best effods to maintain, operate and, where feasible, modify the cable television system toward the goal that its performance will be in accordance with the highest and best accepted standards of the industry." Paragraph 17, Bi-Directional Interconnect Capability: "... All public schools and City's facilities in Franchisee's service area within City shall be interconnected at the request of the appropriate public agency." 3.' Paragraph 18, Subscriber Service and Complaint Procedures: "The Franchisee shall have a business and service office in the City to serve the Tustin cable television system .... The Franchisee will maintain sufficient service personnel and equipment in such location(s) for the Franchisee to be able to take action upon customer service calls in the manner specified herein .... The telephone service shall transmit service interruption messages to the service repair force within two (2) hours of receipt of the odginal call between 8:30 a.m. and 8:00 p.m. Monday through Friday and 8:30 a.m. until 5:00 p.m. Saturdays. The Franchisee shall maintain a service repair force sufficient to respond within twenty-four (24) hours Monday through Friday and within forty-eight (48) hours during a weekend to any individual interruption of service and also a sufficient installation force to perform service installations within ten (10) working days. Service problems that are correctable from the headend station shall be remedied within an eight (8) hour pedod .... The Franchisee shall keep a maintenance service log for a running three year period which will indicate the nature of each service complaint, its location, the date and time it was received, the disposition of said complaint and the time and date thereof. This log shall be made available for periodic inspection by the City;" and WHEREAS, Tustin City Code Section 7412.c requires Media One to comply with the following service regulations: "1. Limit system failures to minimum time duration by locating and correcting malfunctioning promptly, but in no event longer than twenty-four (24) hours after occurrence, irrespective of holidays or other non-business hours .... 1 2 3 4 5 6 7 8 9 10 11 12 13 '14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 '"'";TIN MEDIA Render efficient service, making repairs promptly and interrupting service only for good bause and for the shodest time possible. Planned interrupting, insofar as possible, shall be preceded by notice given to subscribers twenty-four (24) hours in advance and shall occur during periods of minimum use of the system;" and WHEREAS, Tustin City Code Section 7412.e requires Media One to comply with the following regulations: "1. It is the desire of the City that all cable television systems franchised hereunder shall, insofar as financially and technically possible, be compatible one with another and with systems adjacent to the City. Wherever it is financially and technically feasible, the Grantee shall so construct, operate and modify the system so as to tie the same into ali other systems within and adjacent to the City." NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, determines and orders as follows: SECTION 1: PRELIMINARY ASSESSMENT THAT THE CITY SHOULD NOT RENEW MEDIA ONE'S FRANCHISE. That as a preliminary assessment, after having reviewed Media One's performance under its franchise and Media One's proposal for renewal, Media One's franchise should not be renewed. This is not an assessment pursuant to 47 U.S.C. Section 546(c)(1). The reasons for this assessment are as follows: A. Although the City provided Media One sufficient notice and an opportunity to cure the following problems, Media One has failed to substantially comply with the material terms of its franchise and applicable law: 1. Frequent and prolonged television service interruptions. 2. Rudeness and indifference displayed by Media One customer service representatives. 3. Media One employs customer service representatives who are not knowledgeable about Media One's products and procedures. 4. Telephone service calls are not answered or answered by a recording only. 5. Long hold times for calling customers, 6. Service representatives fail to respond to scheduled on-site technical service calls. . Various customer billing issues (i.e. high rates, Iow service levels, billing errors). -5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ;TIN MEDIA 8. Limited channel/programming offerings. 9. The new equipment that Media One requires customers to use is not easy to use, and is often confusing for customers (multiple boxes and remotes are required). 10. Media One provides poor service to public schools. While some schools are connected to Media One's system, others are not, and those that are connected have experienced outages. B. Although the City provided Media One sufficient notice and an opportunity Jo cure the following problems, the quality of Media One's service, including signal qua response to consumer complaints, and billing practices, is unreasonable in light ,~ community needs: 1. Frequent and prolonged television service interruptions.. 2. Poor reception and picture quality. 3. Rudeness and indifference displayed by Media One customer service representatives. 4. Media One employs customer service representatives 'who are not knowledgeable about Media One's products and procedures. 5. Telephone service calls are not answered promptly or are answered by a recording dnly. 6. Long hold times for calling customers. 7. Service representatives fail to respond to scheduled on-site technical service calls. 8. Various customer billing issues (i.e. high rates, Iow service levels, billing errors). 9. Limited channel/programming offerings. 10. The equipment that Media One requires of customers is not easy to use, and is often confuSing for customers (multiple boxes and remotes are required). 11. Media One provides poor service to public schools. While some schools are connected to Media One's system, others are not, and those that are connected have experienced outages. C. Media One's financial, legal, and technical ability to provide the services facilities, and equipment set forth in its proposal for franchise renewal, is questionable a.~ follows: 1. Media One is unable to employ sufficient customer service personnel t¢ address the nurnber of customer service complaints. 2. Media One is unable to train customer service and technical personnel t( promptly and satisfactorily address customer service requests. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ~;,TIN MEDIA D. Media One's franchise renewal proposal is not reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests, as follows: . 2, 3. 4. Media One's proposal fails to provide for live coverage of City Council Meetings and a regularly scheduled rebroadcast at least 2 times, including 1 broadcast during a weekday prime time and 1 broadcast during the weekend, including transmission to the Cox Communications system. While Media One currently provides this service, its renewal proposal suggests that it intends to discontinue this service. Media One's proposal fails to address connectivity with Cox's cable television system, which serves approximately one-third of the City, thereby precluding City Council Meeting coverage for approximately one-third of the City. (See, Tustin City Code Section 7412.e.2). Media One's proposal would reduce customer service standards applicable under the current franchise. For' example, the proposal would eliminate the requirement for Media One to maintain sufficient service personnel and equipment for Media One to be able to take action upon customer service calls in the manner specified in the franchise agreement, to respond within a reasonable time to any individual interruption of service, to minimize the i:lelay for service installation, and to keep a maintenance service log over a three-year period containing the disposition of service complaints. Additionally, Media One currently may not be meeting FCC customer service standards, which are desired by the City, and which require the following: · Trained company representatives that will be available to respond to customer telephone inquires during normal business hours. · Telephone answer times by customer representatives, including wait time that shall not exceed 30 seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed 30 seconds. · Standard installations will be performed within 7 business days after the order is placed. · Begin working on service interruptions within 24 hours after the interruption becomes known.. · The appointment window alternatives for installations, service calls, and other ~nstallation activities will be either a specific time, or at maximum, a four-hour time block during normal business hours. · An operator may not cancel' an appointment with a customer after the close of business in the business day prior to the scheduled appointment. · If a cable operator 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. [47 CFR § 76.309]. Media One's proposal fails to provide documentation of customer service quality assurance efforts and of participation by all customer service staff in training in customer relations. -7- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 ,TIN MEDIA o Media One's proposal fails to provide free Internet access to City facilities, libraries, and schools. Media One's proposal fails to agree to provide open Internet access in Tustin should it become available to any municipality in the State of California. Media One's proposal fails to assure continued maintenance of a local customer service office. 8. Media One's proposal fails to assure that it will maintain a locally accessible television program production facility, ' .... 9, Media One's proposal fails to provide for the upgrade of the City Cour television production facilities. 10. Media One's proposal would limit the definition of the gross receipts over which Media One will pay franchise fees as currently defined in Tustin City Code Section 7413 and Ordinance 1002. 11. Media One's proposal would exempt Media One from payipg franchise fees in the event that open video service providers using the public right-of-way do not also pay a franchise fee on the same portion of their gross receipts, although open video service providers are subject to separate regulation an¢ requirements under the Cable Act. 12. Media One's proposal would eliminate the requirement for Media One to reimburse City expenses associated with the franchise renewal process. 13. Media One's proposal would limit Media One's duty to provide some free services and minimum service requirements to educational and governmental buildings and institutions. 14. Media One's proposal would require a "more favorable condition" clause while it would eliminate a "more favorable city" clause. .,, SECTION 2: NOTICE TO PRODUCE DOCUMENTS: Media One is hereby ordered to produce within thirty (30) days of the date of this Resolution,. one copy of the maintenance service log required by Section 18 of its franchise, Ordinance 1002, for the pedod commencing November 21, 1997 through November 20, 2000, indicating the nature of each service complaint, its location, the date and time it was received,-its disposition and the time and date thereof. SECTION 3: REQUEST FOR REVISED OR NEW PROPOSAL AND SUSPENSION OF THE PROVISIONS OF RESOLUTION NO. 99-49. The provisions of Resolution No. 99-49 are hereby suspended, and Media One is requested to submit a revised or new proposal for renewal of its franchise within sixty (60) calendar days of the date of this Resolution. Media One is requested to address in its proposal each of the matters described in Section I of this Resolution. EXHIBIT A · . ATs,T September 5, 2000 AT&T 'Broadband 550 N. Con;inch:al Boulevard Suite 250 El Segundo. CA ~;K)245 Mr. Tim D. Serlet Public Works Director Ci~ of Tustin 300 Centennial Way Tustin, CA 92780 RE: AT&T Broadband FrancMse Renewal Dear Mr. Serler: As requested in your letter of May 8, 2000, a~ached is the Franchise Renewal Agree .m..em . that is being proposed by AT&T Broadband. It was The intent of AT&T Broadband to mirdmize the duplication of work that tlne City of Tustin might'have to engage in by negotiating two Franchise A~eements simultaneously, one with Cox Communications and ',.he other with AT&T Broadband. Therefore, our proposal is submitted as an edited version of the Cox Communications document that was provided to us by the City,. We hope this ',,,,ill simplify the process and address all of the concerns ~hat were outlined in your May 8t~ Ietter. I would also like to request an opportm, uity to discuss in more detail the processes that AT&T Broadband '~411 employ to address the customer service concerns that were expressed by the City Council. As you know AT&I Broadband is rapidly completing it's rebuild efforts within the city which will improve the quality of video service within the ci,'3' and reduce the number of complaints that have been raised by residents regarding their picture quality.. I and other AT&T Broadband staffhave also met ,~Sth the City of Tustin staff to coord/nate AT&T Broadband's increased involvement with the local eommuni~ which was requested in your May $4 letter by m-~ms of participation in Tustin Tiller D~'s. This is just one example of our continued eommimaent to the city and I welcome the opportunity to meet with the City of Tusfin to discuss other possibilities of community involvement. AT&T Broadband Franchise R-.n.-wal September $, 2000 Page 2 We look forward to meeting with City of Tustin staffas soon as possible to work out the details.of the proposed agreement. If in the meantime, you have any questions or require further clarification please do not hesitate to contact me at (310) 647-6682. Stephen D. Sawyer Director, Local Government Affairs Cc: William Huston, CiD' Manager, Ci,'y of Tustin Joe Meyers, Senior Management .amalyst, Cit')' of Tustin Lois Jeffi'ey, City. Attorney, City of Tustin C)r~Tustin 4 5 6 7 8 9 10 11 12 13 14 15 16 17 !8 19 20 21 '22 23 24 25 26 27 28 ORDINANCE NO. -1-338 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, RENEWING A FRANCHISE FOR A CABLE TELEVISION SYSTEM GRANTED TO ~vv~l,I lily.I ~.~ ~ ~VII,III~BIIV~. i OP~t~ COU~TY.MEDIAONE OF LOS ANGELES~ INC. KNOWN AS AT&T BROADBAND. WHEREAS, the City is authorized to grant, renew and deny franchises for the installation, operation and maintenance of Cable Television Service within the City's boundaries by virtue of federal and state statutes and court rulings, by the City's poll powers, by, its authority over its public rights of way and by other. City powers and authori and WHEREAS, "'"""'"'-' ' ' '~ ...~,....., ..... vled~aOn_ of Los Anqeles. Inc., doing business cs, Ccx r,,....,..,,,,,,,,~,~,,.,,,.,;,..,,;,,.,., r-,,..,,,,,~_ ..... C.~t::~;as AT&T Broadband (hereinafter, "Grantee"), is currently maintaining and operating a Cable Television System in the City of Tustin pursuant to a franchise granted by the City; and WHEREAS Grantee agrees to comply with the applicable provisions of Tustin'City Code, Sec. 7410 et seq., as amended and the provisions of the Cable Communications IPolicy Act of 1984 as amended by the.Cable Television Consumer Protection and Competition Act of 1992 and by the Telecommunication Act of 1996, 47 U.S.C. §§ 521 et seq. (the Cable Act); and WHEREAS, the City finds that Grantee has substantially complied with the material terms of its existing Franchise and with applicable law; and . WHEREAS, the quality of Grantee's Cable Television Service, including signal quality, response to consumer complaints and billing practices, has been reasonable in light of community needs; and WHEREAS, Grantee has the financial, legal and technical ability to provide the services, facilities and equipment as set forth in this Ordinance granting a Franchise renewal; and -' WHEREAS, the terms and conditions of this ordinance granting a franchise renev are reasonable to meet the future cable related needs and interests of the community, taking into account the cost of meeting Such needs and interests. NOW THEREFORE, the City Council of the City of Tustin, California, does hereby ordain as follows: 1. · Grant of Franchise Renewal. a. The City hereby grants a Cable Television System Franchise renewal to Grantee pursuant to the terms and conditions of this Franchise for the Dumoses of constructing, ooeratinq, rebuiidinq and maintaining a System in the City. Grantee may erect~ install, construct, uporade, reDai-r, reolace, reconstruct and retain in. on. over, qnder, upon, across and alono the Public Rights-of-way in the City. such lines, cables, fiber optics, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, enclosures, attachments and other DrO;:)ert'v and eouioment as are Frc,-,ch~',~c.necessary and.. appropriate to the operation of the System to provide Cable and such other services as perro, iffed by law,. 1 2 3 4 5 6 7 8 9 10 '11 13 14 15 16 17 18 19 '20 21 22 23 24 25 26 27 28 ~n~'fustin This renewal of a non-exclusive Franchise for a Cable Television System (hereinafter the "Franchise") is issued pursuant to the authority provided in Tustin City Code, § 7410 et seq., (hereinafter the "Enabling Ordinance") and the Cable Act. Ail of the provisions of the Enabling Ordinance are incorporated herein by this reference, as if set forth in full. The Enabling Ordinance and this Franchise contain the terms and conditions of the Franchise and shall supersede all prior Franchises granted to Grantee on the effective date of this Franchise. To the extent the provisions of the Enabling Ordinance are inconsistent with those of this Franchise, the provisions of this Franchise shall prcvcil: i prevail. No amendment to any ordinance, rule, regulation, resolution, or other enactment of the.City shall be effectiv..e upon Grantee without Grantee's acceptapce to the extent that such ~amendment materially increases .Grantee's burdens or materially diminishes Grantee's benefits hereunder. b. Grantee shall be subject to future City ordinances and City code amendments relative to its operations in the city. c. Assio'nment or Transfer of Franchise. The Franchise granted herein shall be a privilege to be held in personal trust by Grantee. It cannot, in any event, be sold, transferred, leased, assigned or disposed of in whole or in part, either by forced or involuntary sale, or by voluntary sale, merger, consolidation or otherwise, without prior consent of the City Council of the City of Tustin expressed by Resolution, and then only under such conditions as may therein be prescribed, consistent with applicable law. Any such transfer or assignment shall be made only by an instrument in writing, such as a bill of sale, or similar document, duly executed copy of which shall be filed in the Office of the City Clerk within thirty (30) days after any such transfer or assionment. Any proposed assignee must show responsibility and capability as determined by ~the City Council, consistent with applicable law, and must agree to comply with all provisions of the Franchise and Tustin City Code. However, no such consent shall be required for transfer in trust, mortgage, or other hypothecation, in whole or in part, to secure indebtedness. Provided, further, that Grantee may transfer the Cable Television System and any. related assets, including this Franchise, to an entity which controls, is controlled by, or ~s under common control with Grantee, provided Grantee shall give at least thirty (30) days prior written notice of any such transfer to the City. The consent required herein shall not be withheld unreasonably. 2. Franchise Area. The Franchise Area for this Franchise shall be all property within the boundaries of the City of Tustin as of the effective date of the Franchise, and as the boundaries may change during the Franchise period through annexation, subject to the following conditions: a.' Grantee shall not be required to overbuild areas already served by another multi-channel video provider. b. In the event Grantee elects to overbuild areas already served by another multi- channel video provider, Grantee shall be subject to the procedures established under Section 53066.3 of the California Government Code, as applicable at the time Grantee submits its application, plans and specifications required under the Enabling Ordinance and this Franchise. c. In the event of annexation of new territory to the' City, the City Council may determine at a public hearing the grantee or grantees, if any, that will serve such new territory. ... 3. ,Term of Franchise. Notwithstanding Section 7414.a. of the Tustin City Code, the term of this Franchise shall be for a period of ten (10) years, commencing on July 4-;, -- ,- ,- I-4~AT&T Franchise V1 tg!sG'v3i "-" .-.'~':-.'.~.!c= -- ,'-"'. '-'3-~; ........ -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Lz99~,6. 2002. and expiring J,,.:n~30, 2010,on midniqht of July 6. 2012. subject to termination as hereinafter provided. 4. Franchise Fees. · ....... ,,,..,0~,,,,,.,,.. ,,..,.,,., i,'"0,'"%,, ,;.;., ,,,~.~.,,,,-,: ,,,.,,,, ,...., ,.,~..,,.., · Ci~y !ght ' " ........,,~... ~ ....................... j ,,.,, ,.,,.. p,"O'.'i~.~, of .......... ~,~,. ,,,,,., .., .... ~ .......;,k T'--':dm O!:y Ood~.Durinq the term of this Aoreement. Grantee .shall pay to the City an annual franchise fee in the amount of 0v..e percent. (S%) of its Gross Revenues. ?anchise fees may be oassed throuoh to subscribers as a line item on subscriber invoices, and otherwise. In the event another provider of vide.o, proorammino, including open video service, uses the Public rinhts-of-wav for purposes of,. constructinq, operatino and maintainine a facility for the di-stribution of video program .mi_ng. the Grantee shall not be reeuired- to Day a fran~,hb.e fee on the portion of its Gross Revenues derived from its provision of any Service unles.s such other 9rovider is also required to pay a franchise fee on th.e same portion of its Gross Revenues attributable to its or. vision of that Service. The fee payable by the Grantee. as a p. ercentage of any portion of its Gross Revenues. shall not exceed the percentaae payable by. the o.t.h_er on the same portion of its Gross Revenues. · ' ' " [~ ,~, ,.- ,,'~; ..N4- t-. ' · ~b. For purposes of thru sect,on, Gross, .,..,.~,,..... '~ i i~,41 i i,'~l~ ~i.~I ll'd~b Il I ik~l kd111411 l~ ~1114 · I J ~, ql14 ,f% %11~ ~.1 ~..~l ~i~ ~i¢' i ¥ I ~'rl~ I.W I ~-411 I I t"dW J I ~"'F %all ikl~ .~ ha I~i~ ~I f.A, l*~dd'~ l''l~''~ ~''~ ~'~ ·"~ ~ 'kAI I ~.,~ ~.~kl ,~ ~i~II on:,, m'.:b::dbor or -'-':or by :Revenues' shall mean all revenues received bv Grantee for Cable Services provided to Subscribers in the Franchise Area usino, the. Public Riqhts-of- Way. excluding taxes, franchise fees. r~ulatorv_ fees or other assessments collected for .'" ,~, oovemmental authorities, bad debt expense, and subscriber de..sits. ~c..~ Time of Payment. The franchise fee shall be payable forty-five (45) days afte~ the close of each quarter of Grantee's fiscal year ("billing cycle"). W~44 ........~,. ~2 ~' .......... ~.,.,-,, ......~ ..... 0r~.Tcsti.n 14 AT&7 ;~.~ise y~,fg;DO0) I -3- 1 2 6 7 8 9 ~0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 gt~eTus',in ............ ~ ..................................... · ;'c!uc5!-', ru.....c ~.,..,.. ...... T Ir J lJ lil~l lbJ~ ~l.J~ I IJl~ rll~ fl.,J I J ~,.~ rbJll k'le./ I I I ! ',jj.~ ~1' & ~b~Jjl~ I~1~ ~ J,414 I I J I J,.4i fl..4 li~4 'rt~J I I11U I JTi~ I Ii,JO&il ~l~ J &T,~ I. i dj Jll~J JJlgl~j bi l~ ..... , .............. pC)' .......~ .............. ,, ~. ,~:d..~. No a~ceptance of any paymont shall be construed' as an accord that the amount paid is, in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any claim which the City may have for further additional sums payable under the provisions of the Franchise. ~ ~-,;~,k .........~ "~ ~;*" EX2C~$OC. ~-~""* ....~'-'" ...... City 2~ 2,,moL:~t 4 · . · : ~ .~' · · "'~ ~"§-" ......... ; ....... '~ by +~'" Coty in prcpa,'m.~, rcv:s;a=, nogs;strong and O..,L:__ ;O ~ .... ..- ,.. ,..,,~ .4 ...... + ....... *;~' ~'"'~ ""'"' "'~ """~ cush -3.t2to,~,,or, t '..~ '.ho ~ ...... r ........ I I~llvJ~.~&I ~J,~l lI,.411 ~d~l,~l I ~d/~i~l.dL~.~ J.,4111~l lb ~,.~.~.~..I Ui I~.~ I II~.~t.,~l .~ & · ~ , Im~l I~,~1 ~l.,d ins'.'rrcd by City !n prcpafin~ :nd cnr_.ct~ng this Ord!n=nsx. ~..'5_. Establishment and Extension of Cable Television Service. Within its Service Area. Grantee shall extend its trunk and distribution system to serve subscribers_.reouesting sewice where the density'of potential subscribers to be passed bv such extension_is eoual to or qreater than thirty (30) households per mile in areas passed by over. he_ad cable or fifty (50) households per mile in areas passed by underaround cable, provided that all such as may be required from the qwner of the property is reasonably available, and that service to multiple dwellino unffs need be provided only on terms acceptable to Grantee. In new housing districts, areas with occupancy densities of more than thirty (30~ households per mile which are contiquous to the system will be provided with access to so,ice to the extent service is economically feasible and technically possible. --~areas with less than thirty f30) households Der mile aerial or fifty f50} households per mile underg, r,o_und, service shall be offered in conformance with Grantee's service extension policies. Grantee shall not be required to extend or ¢ff2~ Ccble Tclc;'is]cr. l~,~v s ~,~ I, ,.,, ,,.., ~. ~ ~.~ ~1 ,,.d ,,v,,. 4. ~_-...+ ......;~ ;~ r,..k,,. -,-~,..,,;,.;,.., ~y,.,...~ ~.,,.;,;+;..~ cr ;~ +~'"its trunk and distribution system where the area is already sewed bv '-'-~'-'-'-;---' '-~ r,.,~.~., -r,.~.,,,;..;,.., ~,~ ~'% {T~=~ I i ~ i TI.~ i i 1~.~I ~rl.~ ~iV I ~1 ~ I I~J.~IVi I ...... ,~ .... ;i+ ;.. ,.-..r..,.. '.Y..,...,,;..;..,., o,,,,, ..... ~1:~-,+;,-,,-, .Lr, ,.,,- a;'C3 IOSS *~'"'" ,)n k .... pc' '"'"" ,,,,..,.,,...,,,..,,,.~ s,,.,,,,,l,,d,,~ ,,,.,,,,., ~,~., , 1,..,..,,..,,,~../ ,.,....~,.,~,,,.,~,,,~ ~..,~,... ,,,,...~.,-,.1.,,..,,..~,,..,,,. ~r""""' -r,.,,.,,;,.;,.,, e-,..,;,,,. ,., .~. ...... ~., · ..... +; ..... ;+k;,..~.;~, t-~m d:ys.a, nother Person franchised by the City. Gr. an. tee's maximum standard ienoth for a service drop is one hundred twenty-five' (1.2.5). aerial feet. For underaround drops which reouire the cuttina of pavement curbs. 'sidewalk, or similar surfaces, an~l for all drops areater than' one hundred twenty,-ffve f125)feet, Grantee will charae an installation fee eaual to its cost of time and materials plus customary overhead. · .. · ~6_. Rates." Grantee shall impose rates consistent with the provisions of the Cable Act, and pertinent provisions of the California Government Code, any supplements or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 amendments thereto, any successor legislation, and the regulations which are or will be promulgated under such legislation. Grantee shall advise City of its rates and of any changes thereto ~c-s ............. , .... .,., .... ~ .................. ~n accordanc.. applicable law. 8. Cable Television System Desi.qn and ,.. ........... ,.~Performance Requirements. a. Cable TelevisionSvstemCapacity. Grantee shall provide a minimum carriage capacity of 750 MHz. Each Channel delivered to the Subscriber shall meet all Federal Communication Commission (FCC) standards and rules. Grantee shall use its best efforts to maintain, operate, and, where, in Grantee's opinion, is technically and economically feasible, modify the Cable Television System towards the goal that its performance, will be accordance with the highest and best accepted standards of the industry. b. Minimum Services. Grantee shall make available ca~)acitv for a minimum of seventy-five (75) channe!s, provided that Grantee may utiiize alternative technologies (including compression or servers) to deliver such channels. c. Permits, Pla.n...s and SPecifications Required. (1) Prior to performing any work in, upon, above, beneath, or across any public right-of-way, Grantee shall first obtain all necessary or required permits, agreements, or approvals from the City and all other governmental entities with jurisdiction over the work or public right-of-way, including by way of example but not limitation, any or all of the following: (a) Encroachment permits for street work, street excavation, use, removal and relocation of property within a street, and other street work, (b) Design review of above ground cabinets pursuant to Ordinance No. 1213, codified at Part 6 of Chapter 2 of Article 7 of the Tustin City Code, (c) Permits or agreements for occupying any other property of the City to which access is not specifically granted by the Franchise, including, without limitation, permits and licenses for placing devices on or in poles, conduits, or other structures or facilities owned by the City or otb .... governmental entity. (2) Ali plans for work in, upon, above, beneath, or across the public right-of- way. shall be engineered to a scale of not less than 1':-4' and shall include the proposed location of the work, Grantee's existing facility locations, construction timetables, equipment specifications, and design performance criteria. Grantee shall make reasonable efforts to avoid negative aesthetic impacts. (3) Grantee's SYstem. Grantee shall maintain in its business office, and make available to the City for its review, upon request, maps, using standard industry designations, that at a minimum disclose (a) cable routes, (b) locations and identifications of aerial and above and below ground appurtenances (such as risers, vaults, pedestals and power supplies) and (c) physical locations and identifications of system components, including but not limited to cables and active and passive electronics and the electrical values of its taps, splitters or directional couplers. Since such maps may be proprietary and confidential, copies will not be provided to the City. Where such plans and specifications are not in compliance with zoning ordinances, traffic safety standards, and other applicable ordinances, codes, regulations, ;'T Fr~n=hise V1 (9!5!0,D) -5- 1 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 determinations and ratings, Grantee shall modify or revise such plans and spec~cations so as to achieve such compliance, At the request of the City, Grantee shall reasonably relocate facilities within technical design constraints where such relocation will not result in additional cost to Grantee. - T~,,,-, % A !,,,,', /~ n ,-, ,-~ I-,;I ;f~, A ,.,,, . ............... rc=u._..cn:, .., .............. -;, ~, ~. ;~*~,.~, however; that upan .............. ~ ..... rcm .,,. prsv:s:cn cf .... ~ ~2 TcIcvlsicn Scr.'iscs, tc~sthcr ...... ___~ ¢2,2 ~, TC,~ ..... , ,~-,,,~ ~,~. , ~,,,,,,,~, ~.,~,,,~,,s , SI IV I~1~1 thc f~l_. Parental Control. Grantee shall provide a parental control option, trap or other device to Subscribers requesting the capability of removing objectionable video P.rogramming from any Cable Television Service or any Premium or Pay-Per-View Channel not subscribed to that is scrambled or otherwise withheld from any Subscriber. Grantee may charge for any such devices. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DneTu~tm :¢;'arrido an C!tyd=,a!gnctad Ch"~m,c-~"-, ,:in di:! up ar dcd!octad talaphono can?o! ,.:pan -'l'~a:'i~ion S)'ste,"r,, onl)' ;'~ a,-'n,,argcnc)' ";*'"~+;"'"" ~ '""'"'"'""' by "'" r-..,y r, ..... ;' "' City ~ ......... ~"" :~'"'" ;" 2 ~'"'"* '" +~' .... ~"; ..... '~"'" ~'"'"'+~ "' s~fc~e Emerqency Alert System. Grantee shall provide emergency .alert syste..m.. {TEAS") capability consistent with the iAS rules set forth the FCC's rules oov_erning cable television systems. :. ,~'~3n .......... ~ ....... f. Standby Power. Upon complet! of.the S~Ls~em rebudd Grantee shall provide standby power generating capacltyd ~ at ~th~ CableTc~cv~ System control canter ~nd ~t ~]] H~dcnd:. Upo~ act?::t~c~ of ccsh 2h~:c ~f: ............. u ....... ;, ~ ........enter. Grantee shall maintain standby power system suDolies throuehout the major trunk cable ne~orks cagable of ~roviding em~mencv ¢~ ~--*"";";~ ' ' *-*~ ~k~- ' -~ ~ within ................ S)'~om ~j~has 3t .......... cpt:c ......power the standard limits of commercially available power suppl~ units. 9. Grantee Suogort for EG Access and Local Orioination. a. Grantee shall designate Channel capacity on the Basic Cable Television Service tier for educational and governmental ("EG") programming and for Local Origination programming. Grantee shall initially designate three (3) Channels; one (1) Education Channel; one (1) Government Channel, and one (1) Local Origination Channel. b. In the event Grantee is required by federal law or regulations to Change the 'Channel number of an EG Channel, Grantee shall provide thirty (30) days advance notice to the City and its customers. Should Grantee desire to change the Channel number for any other reason, Grantee shall notify the City of such change and the reason for the change at least sixty (60) days before the proposed change. c. Whenever programming, whether of performances, notices or any. other broadcast content, of any EG Channel occupies less than ten (10) hours of programming per day for six (6) days .per week for a continuous period of not less than twelve (12) consecut .... : weeks, the City shall permit Grantee to utilize unused Channel capacity of that Chan under the following conditions: (1) Any request from Grantee to use any faliow capacity designated for a EG Channel must be submitted in writing to the City. (2) The City shall approve the request from Grantee to use fallow Channel capacity if it finds that: (i) the utilization of the Channel is as represented; (ii) Grantee has not acted in violation of any of the provisions of the Franchise regarding utilization of the Channel; and (iii) there are no special circumstances which would justify the denial or delay of implementation of the use of the Channel. If the City fails to act on Grantee's request within thirty (30) days, it shall be deemed approved. After approval, Grantee may continue to utilize the Channel for any other purpose it so chooses, · consistent with the Franchise, until the City reasonably determines that all or a part of such Channel is negded for EG Programming. (3) Should the City reasonably determine that all or part of such Channel is needed for EG Programming, the City may require Grantee to fully or partially ;ran:hise Vl ~9!.~!~01 -7- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 relinquish Grantee's use of said Channel provided that Grantee shall be given not less than =[~y/~_n~ dcysc, ix (6) months notice to relinquish same. d. The EG Channels shall be under the exclusive management and editorial control of the City. The City shall have sole responsibility for the Programming of the EG Channel(s) provided by Grantee, including without limitation, the carriage of Programming on the Channel(s) and the establishment and administration of all rules, regulations and procedures pertaining to the use and scheduling of the Programming presented over the Channel(s). The Channel(s) shall be used solely for non-commercial, governmental or educational Programming. The City may designate a representative, such as an access corporation, to use and administer said Channels, with all of the attendant rights and obligations provided to the City hereunder. e. Grantee shall provide an adequate Local Origination access production studio equipped with sufficient portable and stationary equipment so as to allow production of videotaped and live Programming. The Local Origination studio shall be located and operated within thirty (30) miles of the City. Grantee shall operate and manage the Local Origination Channel, and shall have editorial control over all Programming on the Local Origihation Channel. x--~ _.., ............ cgrcc thct '"'~ c=ct ,,f cqu'.pmcr~' prc;'!d,~d '.-'ndcr th~ · -- Ii,-,-_ * ' .................. .,...~rante~ C~L~:p,,~,O,.I~.~,-..,-'.-.-:'~"'~ ,,...4.....,,..... ~:,. ,... ;.... ~S-'D~,C,~, O,'i, C:~.) ..... .....~..,,,~;* .... ,.....~...,..-'~"' ~.:u.. ~ shall provide one (1). free cable connection and free basic cable service to (a/.e_ach publi, building specifically set fo.rt.h, in Exhibit A..:.and. (b) to each public and private school buildinJ within the Franchige Area, which is passed by the activated Cable Svstern subiect tJ Grantee's line extension Dolicy soecificallv set forth below. Grantee shall be reouired t< DneT'.'stin ......... 1 ,~ ~T.& .T. =,'an~ise W ¢g.'5/00~ -8- Cc~ .--.--'_.'t.c .!=: ....... , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 One'Tustin make only' one. (1) standard installation at one l'1 ) point reasonably convenient to use at each facility in question and Grantee shall not be reauired to wire the entire faci.li, ty or to provide more than one (1) outlet at no cost. In the event Grantee provides cable modem (or equivalent equipment) data service over the Cable System. within one i'1) year from the date that cable modem data service is beinq offer:ed commercially in the Franchise Areal each public and private school shall be provided, .one (1) cable modem and data servi.ce at no cost. 'Such service m..ay not be resc~l~ by said public or private school, or used for any for.-p, rofit or Commercial activities. ' Nothinq in the foreaoing shall be deemed, however, to prevent the ' County or other public entity from distributinq the. signal, at its own expense, throu.qhout each ~,uc. h public building, and/or public or private school. o · _ 10. Bonds and Insurance Coverao. e. a. Performance Bond to C.i~. During the term of this Franchise, Gran',~e shall file with the City Clerk and maintain in full force and effect a corporate surety bond or other adequate surety agreement approved by the City Attorney in the amount of Fifty Thousand Dollars (,$50,000.00). The bond or agreement shall be so conditioned that in the event Grantee shall fail to comply with any one or more of the provisions of the Tustin City Code or of the Franchise granted to Grantee, then there shall be recoverable jointly and severally from th~ principal and sure,y, any damages or loss, or costs suffered or incurred by the City as a result thereof, including reasonable attorneys' fees and costs of any action or proceeding,' and including the full amount of any compensation, indemnification, costs of removal or abandonment of any property or other costs which may be in default, up to the full principal amount of such bond. Said ~r_.~_ndition shall be a continuing obligation during the entire term of the Franchise and thereafter until Grantee shall have satisfied in full any and all 'obligations to Ci~, which shall arise out of or pertain to, said Grantee. The surety shall be licensed in California and maintain a Best's Key Rating Guide (latest edition) Financial Size category of'VII or betler and shall be rated Grade "A" or better. b. Insurance. Grantee, at its sole cost and expense, for the full term of the (and any extension thereof), shall obtain and maintain at minimum all of the following insurance coverage: (1), Types of Insurance and Minimum Limits. The coverage requir.e.d herein may be sadsfied by any combination of specific liability and excess liability policies.._ (ii Workers Compensation and Employee Liability Insurance conformance with the laws of the State of California for the statutory limits. (ii) Grantee's vehicles, including owned, non-owned (e.g. owned by Grantee's employees and used in the course and scope of employment), leased or hired .vehicles, shall each be covered with Automobile Liability Insurance in the minimum amount of One Million Dollars ($1,000,000.00) combined single limit per accident for bodily injury and property damage. (iii) Grantee shall obtain and maintain comprehensive or commercial General Liability Insurance coverage and shall .include, but not be limited to, coverage for premises operation, explosion and collapse hazard, underground hazards, contractual insurance, broad form property damage, independent contractors, and personal injury liability. The limit of such insurance shall be at least One Million Dollars ($1,000,000.00) combined single limit liability for personal injury and property damage. ~.,, ........ ;, ......................................... ,","C ,"~ ..... -9- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Liability !,%'..'ra,~sc ~a thc 22..qrcgato annu."d (iv) City may, by resolution, from time to time, reasonably increase said insurance to the amounts which other contractors operating within the public right--of-way in a manner similar to Grantee and operating in the jurisdiction of City are required to provide so long as said increased coverage is reasonably available. (2) The City and its officers and employees shall be named as additionally insured by. endorsement (except far brccdccs~,'"s llabi~i~/ ccvcrcgc and '."/c~cr: c~ at no cost to the City. (3) Within forty-five (45) days from the effective date of this Franchise, Grantee shall furnish proof to the City that satisfactory policies of insurance described above are in place issued' by companies licensed in California rated Grade "A" or better and Class VII or better by the latest edition of Besrs Key R, ati,_ng Guide. (4) All insurance policies shall provide that in the event of material change, reduction, cancellation, or non-renewal by the insurance carrier for any reason, not less than thirty (30) days notice will be given to the City by registered mail of one (1) copy of a written notice of such intent to cancel or not to renew the coverage. An authorized agent of such insurance carrier shall provide to the City, on such schedule as is reasonably requested by the City, a certification that all insurance premiums have been paid and all coverage are in force. If for any reason Grantee fails' to obtain or keep my of such insurance in force, the City may, but shall not be required to, obtain such insurance, in which event Grantee shall promptly reimburse the City premium cost therefor plus one and one-half percent (1 1/2%) monthly interest thereon until paid. 11. CustomerScr.'!c=, a-=Service. Grantee shall meet the customer service standards adopted by the Federal Communications Commission (FCC), the State of California, and any additional standard mutually agreed upon between Grantee and the City. ~-'""'+"" +'"..- ~'" "~"" *"' *"'~'" '""'~; ...... ' '"'"'"' * .... ScP.'i,,e'"' c~Js iP, ............................. ~ ................. mc::cr spcc!ficd ................. u ................................ ~O C3C'3 JOSS ~'""., ,~.,. ~'~'~- ",....~ ~..,, ,.~ +'''.~, --. ~..-~'~ ~"""'~"" ~" Ffidc:,', "'"'"'-~"" '"""' ho!ida, ye, 2nd shall have ~"""', ~c~ +'"" ,..~,,--_ 4-,,.-,,11 *,..,J-,pk,.,_,-,,... 4. ,-,,.. .¢..)neTusti~n -10- 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 !9 20 21 22 23 24 25 26 27 28 ..... ~,,.- -,,-~ ,.-~,,-,,' ~,,~,-;~,-* --',;,',,";"y ~' ....... o .... '"':'"'~" ........ /7't ,,.~,,.~,_,e,. ~ ,,,r...,-~L,,; ,,.~,..,_~t pcrlcd, "'~';~' "':" ;"'~:"""-*~'" "-* .....~ """~' ' """'"'":"* ;~'' '"""""" +~'"~'~ ...... U ....... - ................... ~crlcd!c !n$~octiCn by thc City. ... 12. Indemnification. a. Grantee shall indemnify and hold harmless City from ail damages, penalties,, judgments and liability of any kind, and defend ali claims, actions or causes of action arising as a result of Grantee's operation of the Cable Television System, regardless vche~her any act or omission complained of is authorized, allowed, or prohibited by the Franchise, to the extent such damages, penalties, judgments, claims, actions or causes of action arise out of or are caused by the act or omission of Grantee, its officers, employees, or agents. Upon demand of City, made by and through the City Manager, Grantee shall appear in ~.nd defend City, its officers, employees and agents in any legal action, whether judicial, administrative or otherwise, with respect to which City is entitled to indemnification hereunder. b. City agrees to indemnify, and hold harmless Grantee, its a~iliates and their respective officers, directors, employees and shareholders from and against any and all damages penalties, judgments and liability of any kind, and defend ail claims, actions or cause of action arising as a result of the use of the EG access Channe!s. This indemnity shall not apply with respect to any Programming provided by Grantee and which is carried on the EG Channels. 13. Periodic Review of Performance and Quality of Service. a. At City's sole option, City may hold a public hearing at which Grantee shall .be and shall participate, to review the performance and quality of Cable Television Service of the Cable Television System. The reports required herein re.g:arding Cemp!c!nt.%subscriber comp!aint, s, the records of performance tests andHhe opinion su~'- m-pe~.survevs shall be utilized as the basis for review. In addition, any Subscriber rr , submit comments or Ccmpi=!r, tccomolaints during the review meetings, either orally or ,,i writing, and these shall be considered. b. Within thirty (30) days after the conclusion of the public headng, City may issue a report with respect to Cable Television System performance and quality of Cable Television Service. if any noncompliance with the Franchise is found, CitY may direct Grantee to correct the noncompliance within a reasonable period of time in accordance with the provisions of the Enabling Ordinance. c. Failure of Grantee, after due notice and opportunity to cure, as set forth in tJ~e Enabling Ordinance, to correct the noncompliance shall be considered a breach of the Franchise, and City may, at its sole discretion, exercise any remedy within the scope of this Franchise considered appropriate. 14. Privacy_. As of the effective date of this Franchise, Grantee shall not market mailing lists with names and addresses of subscribers unless Grantee has provided 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Subscribers with notice and an opportunity to delete his or her name from the mailing list. 15. No Recourse Aqainst City. Grantee acknowledges that City would not have granted this Franchise if it were to be liable for monetary damages for any act 3erformed in granting it. In general, City and Grantee may pursue any remedy at law or equity available, including but not limited to specific performance, for the breach of any provision of this Franchise, except that City, its officials, boards, commissions, agents and employees, shall not be liable in monetary damages to Grantee, or to any successor in interest of Grantee, or to any other Person, and Grantee covenants not to sue for monetary damages or claim any monetary damages based upon any act or omission by the City, its officials, boards, commissions, agents and employees, in the course of reviewing and approving this Franchise or in the process of granting this Franchise. 16. Underqroundinq and Co-location. In all areas of the City where all electric utility and communications facilities are underground, the Grantee shall place its cables and distribution equipment underground. When ail existing aedal utilities in any City area are converted to underground construction, such that both electric and communications utilities are underground, the Grantee shall replace aerial facilities with underground facilities concurrently and in cooperation with similar programs of the telephone and power utilities, that Grantee is given reasonable notice and access to the telephone and power utilities' facilities at the time such are plsced underground. All underground wires or cable of 'Grantee shall be placed in conduits or other materials approved by the Director of Public Works. Amplifiers in Grantee's transmission and distribution lines may be placed in appropriate pedestals provided that approval has been obtained from the Director of Public Works before excavation. Where conduit facilities are available and co-location of Grantee's Cable Television System facilities with the facilities of other public utility providers is feaSible, the City may require Grantee to co-locate Grantee's Cable Television System facilities with such other public utility providers in such available conduit faciiities. 17. A_cceDtance. Within thirty (30) days after the effective date of this Ordinance, Grantee shall file with City its written, unconditional, nOn-contingent acceptance of the Franchise granted by this Ordinance and its agreement to be bound by and comply with all the requirements hereof. The acceptance shall be signed by a person duly authorized to act on behalf of Grantee, shall be notarized, and shall have attached thereto a certified copy of an order by the Board of Directors of Grantee authorizing and directing execution and filing of the acceptance. An acceptance that constitutes a qualified acceptance or places other limits or conditions therein shall be deemed to be a nullity. Upon the failure of Grantee to file its unconditional, non-contingent acceptance of the Franchise subject to ali its terms and conditions within the time period specified above, the Franchise shall be of no further force or effect and there will not be issued an outstanding cable television franchise in City to any of the companies or entities named in this Ordinance. Grantee shall furnish' and maintain all bonds and insurance policies required to be furnished pursuant to the Tustin City Code and this Franchise. 18. Severabili_ty. If any Section or provision of this Franchise or any ordinance, law, or document incorporated herein by reference is held by a court of competent jurisdiction to be invalid, unconstitutional or unenforceable, such holding shall be confined in its operation to the Section or provision directly involved in the controversy in which such holding shall have been rendered and shall not in any way affect the validity of any other Section or provision hereof. Under such a circumstance, Grantee shall, upon the City's request, meet and confer with the City to consider amendments to the Franchise to meet the odginal intent of the parties, as the circumstances warrant and unless prohibited by law;, provided, however, that Grantee, in its sole and exclusive discretion, is not required to enter an agreement with the City concerning such an amendment. Both the City and Grantee agree ::.~ =,~:,¢'4.% '.":. (~"". '%": -4-4-AT&T F~n~ise Vl fe!5/OO~ -12- 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 to be bound by all terms and conditions of this Franchise except as may be finally determined to be unenforceable by a Court of competent and appropriate jurisdiction with proper venue over this Franchise, provided that the City or Grantee need not comply with any term or condition of this Franchise or the Enabling Ordinance which it is contesting in good faith by appropriate proceedings. 19. More FavorableC. cr.d!ticr,.s. ~Conditions. In the event City grants another Franchise for Cable Television Service, subsequent to the effective date of this Franchise, which, in the opinion of Grantee, contains material terms or conditions more favorable or less burdensome than those contained in this Franchise, Grantee shall have the right to require that this Franchise be amended to incorporate such more favorable or less burdensome terms or conditions in ti";-' Franchise. Upon written request of Grantee, the City and Grantee' shall discuss in ~]ood fa such amendments as may be required to this Franchise. For purposes of this Section, t phrase "material terms or conditions" includes, but is not limited to: term of Franchise; area covered by the Franchise; Franchise Fees; Cable Television System capacity measured in MHz; number of EG Channels; grants or equipment provided by Grantee to City and public schools, Drops provided by Grantee at City public buildings and public schools; liquidated damages, insurance, and performance bonds. b. ~h.su!d ~-""*--" ' ~-'-, ~-', ~,;rccmcnt "- ~ .... -"; ..... ;'~, .%cthcr-mun!c!pc!!ty .......... 0 P,~-O.r ..................... ,.,, agcncy cr thcS: ' 20. Remedies. a. Notice of Violation. City shall provide Grantee with a detailed written notice of any Franchise violation uoon which it ~roposes to take action, and a ninety (90) day oeriod within which Grantee may: (1).demonstrate that a violation does not exist 'or .to cure an alleged violation, or, (2) if the nature of the violation prevents correction of the violation within .90.days. to initiate a reasonable plan of action to correct such violation (includino .a :)roiected date by w..h. ich it will be completed) and notify the City of such Dian of action. b. Default. If Grantee fails to disprove or correct the vi.oLation within ninety (~90) days o.r, in the case of a violation which cannot be corrected in 90 days and Grantee failed to initiate a reasonable plan of corrective action and to correct the violation within · specified time frame, then~..., .... ,...,.....,*;+ .... ,...+ .... .. ,~;"~-,..., ,~ *"~'...,..., ......., ,... 2..,,..,..~'"'" ,.. ,..""'~ ....,..,~'"'"""'"~,~....., ,.,;*~', +~'"., ,....., shall have ~e right to rcqu~c ~+ ~'~-~ .... ~;~. '~;~: .... ~ ~ ~ ....... *~ thc~nstitute leqal ~roceedinos to colle~ damaaes f~m the date of declaration of de~u~, or t~ exercise any other riahts and remedies ........ ~..~.,:~,,., . ~ .... ~ ............... ~ ......... 2~pSrl~r ........................ -' ~ ,l~. ,.l~.l,~:lb L~ . ....... ~n, ~T&T F~nchise V1 (R'~ODI -13- 1 2 3 4 5 #nmi 6 7 8 9 ~0 ~2 ~3 ~4 ~5 ~6 ~7 ~8 ~9 20 21 22 23 24 25 26 27 28 · . ~'~' mcnstc~/damagca ;~ccvoraNc ~, City, ss p:cv~dcd ~--~:~ "~'~"~ :~ b matsr~ ~ ~la · ~'~llb~ 1~ ~i~ll lil~k~lJdl ~lddlbI I.~lll ~l l~ I~ll~ ........... ~ ...... ~ asmp~ymg w:th any ether prc','is!ens ~ '~* ' ' an)~hlna m,~ ,~.; ,~ ssntraG' ,~-~:-,~, ~.,. prcv.4~-~ .... su~ liquidated damaass nfforded to ~e OiW in I~w ar ~qui~, Drovided. however, thnt th. Oitv m~v instit~.te revocntion proceedinas naninst Grantee anly n~er declnmfion of defnult on ~he arounds set fo~h in Section 20. ~b. · %l~-~r] 1~-1~ · ~11 l~u~..JlVq.~. I l~l~,lVl '~11~J~ k~l ,,lll lb-AkIN-~I I Vi kll~ ' &q~4' '~'Pl II~ I1~dl~d~lajj'Na~l''~ :, ..... 21. Alternative Remedies. Termination of the Franchise shall not be deemed to be the exclusive remedy for breach of the Franchise. Nclthcr '"",. l~ ' I~' '":]~+' +~'~ bar or ~22~Te~ination of Franchise ~r ~ause. The following matedal breaches of the obligations of Grantee under the Franchise shall cons~tute grounds br te~inatian of the FmncNse by the Ci~ Council pumuant to the provisions of ~he EnaNing Ordinance. Ordinance only after declaration of debult and only br defaults bv Grantee afisi0q 1 3 4 5 6 7 8 9 lO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 from the followinq circ..umstances.. a, The willful failure to make any payments required under the Franchise and/or to provide City with required information in a timely manner as provided in the Franchise from and after thirty (30) days' written notice from the City of Tustin. ' b. Any other act or omission by Grantee which materially violates the terms, conditions or requirements of the 'Enabling Ordinance or this Franchise or any order, directive, rule or regulation issued thereunder, and which is not cured within thirty (30) calendar days following mailing to the Grantee wdtten notice of the violation or within such period beyond the thirty (30) calendar days as is reasonable. -. c. Material and intentional .m. isr:_epresentation bv Grantee to Ci_ty in ir{format ! reouired to be provided under the Franchise. d. Grantee willfullv or repeateSly violates any matedal orovision of this Franchise. e. Grantee wilifullv fa_ils to acqui.re, the insurance reouired bv the Franchise. f. Grantee becomes insolvent, or is involuntarilv bankruot, or files a voluntary petition for relief under the Federal Bankruotcv Act or any similar Federal or state law for the relief of debtors. o. For Durooses of this Section. the violation of a "material" provision of the Franchise shall mean defects in Grantee's performance of its obliqations under the Franchise that have pervaded the whole of the undeCstandina between the Bartles or that are so essential as to substantially defeat the object that the parties intended to accomplish. h. For purposes of. this Section. the term "willfully" in the context of violations of the Franchise shall mean a violation committed bv Grantee in an intentional manner with disregard for the Franchise and an indifference to its reouirements. The term 'willfully" excludes neolioent violations of the Franchise committed bv Grantee. . i. For purposes of this Section. the term "repeatedlv' in the context of violation.' ..f t.he Franchise shall mean more than one uncured violation of the same provision of the Franchise occurdno within the same three {3) month pedod, and for which City has issued a notice of default under Section 20. The City's determination to revoke this Franchise shall not be effective pending final resolution of all apoeals under this Section. ~k_. Should the Franchise be terminated as provided herein, any resulting transfer of ownership shall be conditional upon payment of an equitable price for the Franchise to the Grantee for the Franchise, as set forth in the Cable Act, 47 U.S.C. § 537. _-2-4=.2_3. Termination for Non-Renewal. If renewal of the Franchise is denied, or if termination results from the operation of Section 23 hereof, and City acquires ownership of the cable television system or effects a transfer of ownership to another party, any such acquisition or transfer of ownership shall be conditional upon payment of the fair markel value of the Franchise, as set forth in the Cable ACt, 47 U.S.C. § 537. ~.~-:. =.-=.%"_-.~2'. ;'2. [S'I. '."."; --1-4.AT&T F,--an~--hLe,e V1 (9.'5.~00~ , -1 5- 1 2 3 4 5 8 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2.~.24. Non-Enfor~ment. Grantee shall not be relieved of any obligation to comply Iwith any of the provisions of the Franchise or any rule, regulation, requirement or directive I promulgated thereunder by reason of any failure of City or its officers, agents or employees itc enforce prompt compliance. I 2.6=.25. Franchise as Contract. The Franchise shall be deemed to constitute a · contract b~-'~e-'~'~~ a--~ C-~. Grantee shall be deemed to have contractually committed itself to comply with the terms, conditions and provisions of the Franchise, and with all rules, orders, regulations and determinations applicable to the Franchise which are issued, promulgated or made pursuant to the provisions of this Franchise. The Franchise .shall not be construed to constitute a contract of adhesion. Ut!IL"~' by-th ~"";~'" 2-~.26. Force Majeure. Any time limits provided for either party's performance hereunder shall be extended for and throughout such additional period of time as such performance is prevented or delayed due to strikes, lockouts, acts of government beyond the reasonable control, acts of God, wars, riots, insurrection or abnormal force of elements or other causes beyond the party's reasonable control; provided, however, that in no event shall any such extension be deemed to have occurred unless (al the pa.rty whose performance is delayed shall have given prompt notice to the other party of the occurrence of ~the event of delay; and (b) the applicable period or periods of time within which such other party may exercise its rights hereunder shall be commensurately extended. · 2-~..27. Effective Date of Ordinance. This Ordinance shall become effective thirty (30) days after its passage. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin, California, held on the ~ day of ,2000. ATTEST: Mayor City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) §§ CiTY OF TUSTIN ) PAMELA STOKER, City Clerk of the City of Tustin, Califomia, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Ordinance No. 1228 was duly and regularly introduced and read at a regular meeting of the City Council held on the ~ day of ,2000, and was given its second reading and duly passed and adopted at a regular meeting held on the ~ day of 2000, by the following vote: m ~nfTpstin C=:: F.~:'.=h!=.'. /2_ ~_'~;~ _'0 ---1-4-AT&T F,-an_-fli,se Vl -16- 1 2 3 4 5 6 7 8 9 10 '11 12 '~3 14 15 16 17 18 19 20 21 22 ?.3 24 25 26 27 28 ~eJneTu~. tin AYES: NOES: ABSENT: COUNCILPERSONS: COUNCILPERSONS: COUNCILPERSONS: PAMELA STOKER City Clerk City of Tustin, California -17- '~'~';TIN MEDIA 1 2 3 4 5 7 8 9 ATTEST: PAMELA STOKER CITY CLERK 13 STATE OF CALIFORNIA ) 14 COUNTY OF ORANGE ) CITY OF TUSTIN ) 15 RESOLUTION NO. 00-81 16 17 18 19 20 21 II COU,~IClLMEMBER ABSENT: J~/05I~PAM ELA STOKER 25 26 27 28 SECTION 4: NOTICE TO MEDIA ONE. A copy of this Resolution and Exhibit "A" shall be mailed to Media One by first class mail. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin on the 20"~ day of November, 2000. J~F~,E-4RY,~dl. THOMAS, MAYOR Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoin..g Resolution was passed and adopted at a regular meeting of the City Council held on the 20'~ day of November, 2000 by the following vote: COUNCILMEMBER AYES: COUNClLMEMBER NOES: COUNClLMEMBER ABSTAINED: Thomas, Worley, Doyle, Pot's, Saltarelli None None None -9- EXHIBIT C AT&T FRANCHISE PROPOSAL Dated January 18, 2001 January 18, 2001 AT&T Broadband 550 N. Continental Boulevard Suite 250 El Segundo, CA 90245 Via Hand Delivery Joe Meyers Senior Management Analyst Public Works Department City of Tustin 300 Centennial Way Tustin, CA 92780 TUSTIN PUBLIC WORKS DEPT. RE: AT&T Broadband's Franchise Renewal Proposal Pursuant to Section 3 of Resolution No. 00-81, passed by the City Council on November 20, 2000, I am pleased to enclose AT&T Broadband's informal proposal.for renewal of its franchise with the City ofTustin.~ In preparing this proposal, we have carefully reviewed the issues raised by the Resolution and closely tracked the language of the franchise agreement that the City recently entered into with Cox Communications. In doing so, we believe that we are providing the City with a proposal that will meet the needs and interests of the community. We note, however, that AT&T Broadband has not yet received responses from the City to questions AT&T Broadband submitted concerning what the City would like to see in AT&T Broadband's proposal. Responses to those questions, of course, would further assist AT&T Broadband in preparing a suitable proposal. This proposal is being submitted subject to AT&T Broadband's understanding of the present posture of the renewal process, as set forth in the previous letters from AT&T Broadband's counsel. (Please see the letters from William Bly to Lois Jeffrey dated November 14 and December 14, 2000 and January 8, 2001 .) At this point, AT&T Broadband has received a letter from the City Attorney that indicates that the City's understanding of the present posture of the renewal may be different from our understanding. (Please see the letter from Lois Jeffrey to William Bly dated January 10, 2001.) The City Attorney's letter, however, did not outline any specific areas of disagreement, and since then we have not received any further communication from the City about any such areas. AT&T Broadband therefore reserves any and all rights it may have that are consistent with its understanding of the process, as set forth in its previous letters, and its submission of this proposal should not be construed as a waiver of any of those rights. ~) Recycled Paper Letter to Joe Meyers January 18, 2001 Page 2 of 4 With that said, I would like to highlight some of the important features of our proposal: As requested by the City, AT&T Broadband's proposal would require AT&T Broadband to comply with all customer service standards established by the FCC and the State of California. In addition, the proposal would require AT&T Broadband to maintain: (1) a service office open during normal business hours staffed with sufficient service personnel and equipment to take action on customer service calls; (2) a service repair and installation force sufficient to respond to any individual interruption of service within a reasonable period of time and sufficient to minimize any delay in service installation; (3) a telephone answering system to receive all construction and service complaints, operable 24 hours a day, seven days a week; and (4) a service log for a running' 3-year period showing the nature of each service complaint, its location, the date and time it was received, and how and when it was resolved. AT&T Broadband's failure to cure a material violation of these standards could result in imposition of liquidated damages on AT&T Broadband or revocation of AT&T Broadband's franchise, depending on the circumstances. As requested by the City, AT&T Broadband's proposal would maintain the City's capacity to provide live coverage of City Council Meetings, as well as other events of interest to the community, and upgrade the City's production facilities. Specifically, the proposal would give the City exclusive management and editorial control of the educational and government channels. Moreover, the proposal would upgrade the City's production facilities by obligating AT&T Broadband to provide up to $100,000 for (1) equipment to enable the City to insert live or taped programming at City Hall onto the designated educational and government channels, and (2) additional equipment to enable the production of local video programming. As requested by the City, AT&T Broadband's proposal would obligate AT&T Broadband to pay franchise fees in an amount equal to 5% of its Gross Revenues (the maximum amount permitted by Federal law) received from provision of cable services, as those services are defined by applicable federal law. As requested by the City, AT&T Broadband's proposal would provide three full- time access channels: one education channel, one government channel, and one local origination channel. As you will probably notice, there are a few provisions that the City has requested that we chose not to include in our proposal. First, we did not include provisions that would require AT&T Broadband to provide open access or to pay franchise fees on Intemet service. Pursuant to applicable law, a municipality does not have jurisdiction to require open access as a condition of a franchise or to regulate Internet service in any Letter to doe Meyers January 18, 2001 Page 3 of 4 way. 2 Probably for this reason, the City did not require COx to provide open access or to pay franchise fees on Internet service. Second, we did not include a provision that would require AT&T Broadband to interconnect to Cox's system. This is because Cox does not have an analogous requirement in its franchise, and it would be unfair to require AT&T Broadband to pay for interconnection costs if Cox does not have the same obligation. Third, we did not include a "more favorable city" requirement, which would require AT&T Broadband to provide equipment and services in Tustin simply because it is providing them in another City. By omitting this provision, AT&T Broadband's proposal would help to ensure that its subscribers in the City of Tustin do not pay for public benefits that are based on the community needs and interests of neighboring communities, rather than the community needs of Tustin. Finally, we did not agree to subject AT&T Broadband to future City ordinances that would have the effect of materially changing AT&T's franchise obligations. If we were to agree to such a provision, AT&T Broadband's contract with the City would be illusory, because the City could unilaterally change the terms of the contract simply by passing an ordinance. The City has also requested that AT&T Broadband provide it with documentation ofAT&T Broadband's customer service quality assurance efforts. Tab B contains outlines from training programs in which all AT&T Broadband customer care representatives are required to participate. By separate cover, we will also be providing the City with a press release of a new customer care initiative that AT&T Broadband has launched. We hope that this is the type of documentation the City is looking for. If it is not, please let us know. Finally, I would like to state that AT&T Broadband understands that the recent upgrade of our system and changes in our service offerings have been difficult for some customers and that we take these difficulties very seriously. We sincerely believe, however, that in the long nm the benefits of these changes will greatly outweigh the short-term inconveniences caused by them. If we did not believe that, We would not have invested over 10 million dollars to create a state-of-the art cable system for the residents of Tustin. Of course, in the long mn, the market will tell us whether we have made a good investment decision. But for whatever it's worth, I would like to note that it appears that the worst of the inconveniences to our customers appear to be over. As the attached graphs indicate (see Tab C), complaints lodged by our customers in the City of Tustin have decreased dramatically since we completed our conversion to the new system. 3 Moreover, the attached graphs demonstrate that the vast majority of the complaints did not take place under ordinary operating conditions, but were tied to a singular and extraordinary eventmthe change in technology that we implemented in October through December 2000. 2 SeeAT&Tv. City of Portland, 216 F.3d 871,877 (2000). 3 These graphs are based on data compiled from the complete list of official complaints provided to Stephen Sawyer from Joe Meyers. Letter to doe Meyers danuary 18, 2001 Page 3 of 4 way. 2 Probably for this reason, the City did not require Cox to provide open access or to pay franchise fees on Intemet service. Second, we did not include a provision that would require AT&T Broadband to interconnect to Cox's system. This is because Cox does not have an analogous requirement in its franchise, and it would be unfair t° require AT&T Broadband to pay for interconnection costs if Cox does not have the same obligation. Third, we did not include a "more favorable city" requirement, which would require AT&T Broadband to provide equipment and services in Tustin simply because it is providing them in another City. By omitting this provision, AT&T Broadband's proposal would help to ensure that its subscribers in the City of Tustin do not pay for public benefits that are based on the community needs and interests of neighboring communities, rather than the community needs of Tustin. Finally, we did not agree to subject AT&T Broadband to ~future City ordinances that would have the effect of materially changing AT&T's franchise obligations. If we were to agree to such a provision, AT&T Broadband's contract with the City would be illusory, because the City could unilaterally change the terms of the contract simply by passing an ordinance. The City has also requested that AT&T Broadband provide it with documentation ofAT&T Broadband's customer service quality assurance efforts. Tab B contains outlines from training programs in which all AT&T Broadband customer care representatives are required to participate. By separate cover, we will also be providing the City with a press release of a new customer care initiative that AT&T Broadband has launched. We hope that this is the type of documentation the City is looking for. If it is not, please let us know. Finally, I would like to state that AT&T Broadband understands that the recent upgrade of our system and changes in our service offerings have been difficult for some customers and that we take 'these difficulties very seriously. We sincerely believe, however, that in the long run the benefits of these changes will greatly outweigh the short-term inconveniences caused by them.. If we did not believe that, we would not have invested over 10 million dollars to create a state-of-the art cable system for the residents of Tustin. Of course, in the long mn, the market will tell us whether we have made a good investment decision. But for whatever it's worth, I would like to note that it appears that the worst of the inconveniences to our customers appear to be over. As the attached three graphs indicate, complaints lodged by our customers in the City of Tustin have decreased dramatically since we completed our conversion to the new system. 3 Moreover, the _ attached graphs demonstrate that the vast majority of the complaints did not take place under ordinary operating conditions, but were tied to a singular and extraordinary event--the change in technology that we implemented in October through December 2000. 2 See AT&Tv. City of Portland, 216 F.3d 871,877 (2000). 3 These graphs are based on data compiled from the complete list of official complaints provided to Stephen Sawyer from Joe Meyers. Letter to Joe Meyers January 18, 2001 Page 4 of 4 We look forward to hearing from the City regarding our proposal. Sincerely, Stephen D. Sawyer Director, Local Government Affairs c~ William A. Huston, City Manager Tim D. Serlet, Director of Public Works/City Engineer Lois Jeffrey, City Attorney Debi Picciolo, Sr. VP, AT&T Broadband, Southern California Market Perry Parks, VP, Local Government Affairs Del Heintz, Director, Local Government Affairs Suzanne Curtis, Esq., Cole, Raywid & Braverman, L.L.P. William Bly, Esq., Cole, Raywid & Braverman, L.L.P. 0 z ffi 0 % % % % NUMBERS -'10 O- ~z Z Z 0 Z -I ::1:: NUMBERS n --! o CZ NUMBERS I i · _t 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, RENEWING A FRANCHISE FOR A CABLE TELEVISION SYSTEM GRANTED TO MEDIAONE OF LOS ANGELES, INC. KNOWN AS AT&T BROADBAND. WHEREAS, the City is authorized to grant, renew and deny franchises for the installation, operation and maintenance of Cable Television. Service within the City's boundaries by virtue of federal and state statutes and court rulings, by the City's police powers, by its authority over its public rights of way and by other City powers and authority; and WHEREAS, MediaOne of Los Angeles, Inc., known as AT&T Broadband (hereinafter, "Grantee"), is currently maintaining and operating a Cable Television System in the City of Tustin pursuant to a franchise granted by the City; and WHEREAS .Grantee agrees to comply with the applicable provisions of Tustin City Code, Sec. 7410 et seq., as amended and the provisions of the Cable Communications Policy Act of 1984 as amended by the Cable Television Consumer Protection and~ Competition Act of 1992 and by the Telecommunication Act of 1996, 47 U.S.C. §§ 521 et seq. (the Cable Act); and WHEREAS, the City finds that Grantee has substantially complied with the material terms of its existing Franchise and with applicable law; and WHEREAS, the quality of Grantee's Cable Television Service, including signal quality, reSponse to consumer complaints and billing practices, has been reasonable in light of community needs; and WHEREAS, Grantee has the financial, legal and technical ability to provide the services, facilities and equipment as set forth in this Ordinance granting a Franchise renewal; and WHEREAS, the terms and conditions of this ordinance granting a franchise renewal are reasonable to meet the future cable related needs and interests of the community, taking into account the cost of meeting such needs and interests. NOW THEREFORE, the City Council of the City of Tustin, California, does hereby ordain as follows: 1. Grant of Franchise Renewal. a. The City hereby grants a Cable Television System Franchise renewal to Grantee pursuant to the terms and conditions of this Franchise for the purposes of constructing, operating, rebuilding and maintaining a System in the City. Grantee may erect, AT&T Franchise V2 (1/18/01) 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 install, construct, upgrade, repair, replace, reconstruct and retain in, on, over, under, upon, across and along the Public Rights-of-way in the City such lines, cables, fiber optics, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, enclosures, attachments and other property and equipment as are necessary and appropriate to the operation of the System to provide Cable and such other services as permitted by law. This renewal of a non-exclusive Franchise for a Cable Television System (hereinafter the "Franchise") is issued pursuant to the authority provided in Tustin City Code, § 7410 et seq., (hereinafter the "Enabling Ordinance") and the Cable Act. All of the provisions of the Enabling Ordinance are incorporated herein by this reference, as if set forth in full. The Enabling Ordinance and this Franchise contain the terms and conditions of the Franchise and shall supersede all prior Franchises granted to Grantee on the effective date of this Franchise. To the extent the provisions of the Enabling Ordinance are inconsistent with those of this Franchise, the provisions of this Franchise shall prevail. b. Grantee shall be subject to future City ordinances and City code amendments relative to its operations in the City. However, no amendment to any ordinance, rule, regulation, resolution, or other enactment of the City shall be effective upon Grantee without Grantee's acceptance to the extent that such amendment materially increases Grantee's burdens or materially diminishes Grantee's benefits hereunder. c. Assignment or Transfer of Franchise. The Franchise granted herein shall be a privilege to be held in personal trust by Grantee. It cannot, in any event, be sold, transferred, leased, assigned or disposed of in whole or in part, either by forced or involuntary sale, or by voluntary sale, merger, consolidation or otherwise, without prior consent of the City Council of the City of Tustin expressed by Resolution, and then only under such conditions as may therein be prescribed, consistent with applicable law. Any such transfer or assignment shall be made only by an instrument in writing, such as a bill of sale, or similar document, duly executed copy of which shall be filed in the Office of the City Clerk within thirty (30) days after any such transfer or assignment. Any proposed aSsignee must show responsibility and capability as determined bY the City Council, consistent with applicable law, and must agree to comply with all provisions of the Franchise and Tustin City Code. However, no such consent shall be required for transfer in trust, mortgage, or other hypothecation, in whole or in part, to seCure indebtedness. Provided, further, that Grantee may transfer the Cable Television System and any related assets, including this Franchise, to an entity which controls, is controlled by, or is under common control with Grantee, provided Grantee shall give at least thirty (30) days prior written notice of any such transfer to the City. The consent required herein shall not be withheld unreasonably. 2. Franchise Area. The Franchise Area for this Franchise shall be all property within the boundaries of the City of Tustin as of the effective date of the Franchise, and as the boundaries may change during the Franchise period through annexation, subject to the following conditions: a. Grantee shall not be required to overbuild areas already served by another multi-channel video provider. b. In the event Grantee elects to overbuild areas already served by another multi- AT&T Franchise V2 (1/18/01) -2- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 channel video provider, Grantee shall be subject to the procedures established under Section 53066.3 of the California Government Code, as applicable at the time Grantee submits its application, plans and specifications required under the Enabling Ordinance and this Franchise. c. In the event of annexation of new territory to the City, the City Council may determine at a public hearing the grantee or grantees, if any, that will serve such new territory. 3. Term of Franchise. Notwithstanding Section 7414.a. of the Tustin City Code, the term of. this Franchise shall be for a period of ten (10) years, commencing on July 6, 2002, and expiring July 6, 2012 subject to a five (5) year extension provided that the City has found that Grantee has met the material terms and conditions of this Franchise during the prior ten-year term. Nothing herein shall be construed to limit the City's right to terminate this Franchise as hereinafter provided. 4. Franchise Fees. a. Fee. During the term of this Agreement, Grantee shall pay to the City an annual franchise fee in the amount of five percent (5%) of its Gross Revenues. Franchise fees may be passed through to subscribers as a line item on subscriber invoices, and otherwise. In the event another provider of video programming, including open video service, uses the Public rights-of-way for purposes of constructing, operating and maintaining a facility for the distribution of video programming, the Grantee shall not be required to pay a franchise fee on the portion of its Gross Revenues derived from its provision of any Service unless such other provider is also required to pay a franchise fee on the same portion of its Gross Revenues attributable to its provision of that Service. The fee payable by the Grantee, as a percentage of any portion of its Gross Revenues, shall not exceed the percentage payable by the other provider on the same portion of its Gross Revenues. b. For purposes of this section, "Gross Revenues" shall mean all revenues received by Grantee for Cable Services provided to Subscribers in the Franchise Area using the Public Rights-of-Way, excluding taxes, franchise fees, regulatory fees or other assessments collected for governmental authorities, bad debt expense, and subscriber deposits. c. Time of Payment. The franchise fee shall be payable forty-five (45) days after the close of each quarter of Grantee's fiscal year ("billing cycle"). d. No acceptance of any payment shall be construed as an accord that the amount paid is, in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any claim which the City may have for further additional sums payable under the provisions of the Franchise. 5. Establishment and Extension of Cable Television Service. Within its Service Area, Grantee shall extend its trunk and distribution system to serve subscribers requesting service where the density of potential subscribers to be passed by such extension is equal to or greater than thirty (30) households per mile in areas passed by overhead cable or fifty (50) AT&T Franchise V2 (1/18/01) -3- . 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 households per mile in areas passed by underground cable, provided that all such permission as may be required from the owner of the property is reasonably available, and that service to multiple dwelling units need be provided only on terms acceptable to Grantee. In new housing districts, areas with occupancy densities of more than thirty (30) households per mile which are contiguous to the system will be provided with access to service to the extent service is economically feasible and technically possible. In areas with less than thirty (30) households per mile aerial or fifty (50) households per mile underground, service shall be offered in conformance with Grantee's service extension policies. Grantee shall not be required to extend its trunk and distribution system where the area is already served by another Person franchised by the City. Grantee's maximum standard length for a service drop is one hundred twenty-five (125) aerial feet. For underground drops which require the cutting of pavement curbs, sidewalk, or similar surfaces, and for all drops greater than one hundred twenty-five (125) feet, Grantee will charge an installation fee equal to its cost of time and materials plus customary overhead. 6. Rates. Grantee shall impose rates consistent with the provisions of the Cable Act, and pertinent provisions of the California Government Code, any supplements or amendments thereto, any successor legislation, and the regulations which are or will be promulgated under such legislation. Grantee Shall advise City of its rates and of any changes thereto in accordance with applicable law. 7. Cable Television System Desiqn and Performance Requirements. a. Cable Television System Capacity. Grantee shall · provide a minimum carriage capacity of 750 MHz. Each Channel delivered to the Subscriber shall meet all Federal Communication Commission (FCC) standards and rules. Grantee shall use its best efforts to maintain, operate, and, where, in Grantee's opinion, is technically and economically feasible, modify the Cable Television System towards the goal that its performance will be in accordance with the highest and best accepted standards of the industry. b. Minimum Services. Grantee shall make available capacity for a minimum of seventy-five (75) channels, provided that Grantee may utilize alternative technologies (including compression or servers) to deliver such channels. c. Permits, Plans and Specifications Required. (1) Prior to performing any work in, upon, above, beneath, or across any public right-of-way, Grantee shall first obtain all necessary or required permits, agreements, or approvals from the City and all other governmental entities with jurisdiction over the work or public right-of-way, including by way of example but not limitation, any or all of the following: (a) Encroachment permits for street work, street excavation, use, removal and relocation of property within a street, and other street work, (b) Design review of above ground cabinets pursuant to Ordinance No. 1213, codified at Part 6 of Chapter 2 of Article 7 of the Tustin City Code, AT&T Franchise V2 (1/18/01) -4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (c) Permits or agreements for occupying any other property of the City to which access is not specifically granted by the Franchise, including, without limitation, permits and licenses for placing devices on or in poles, conduits, or other structures or facilities owned by the City or other governmental entity. (2) All plans for work in, upon, above, beneath, or across the public right-of- way shall be engineered to a scale of not less than 1":4' and shall include the proposed location of the. work, Grantee's existing facility locations, construction timetables, equipment specifications, and design performance criteria. Grantee shall make reasonable efforts to avoid negative aesthetic impacts. (3) Grantee's System. Grantee shall maintain in its business office, and make available to the City for its review, upon request, maps, using standard industry designations, that at a minimum disclose (a) cable routes, (b) locations and identifications of aerial and above and below ground appurtenances (such as risers, vaults, pedestals and power supplies) and (c) physical locations and identifications of system components, including but not limited to cables and active and passive electronics and the electrical values of its taps, splitters or directional couplers. Since such maps may be proprietary and confidential, copies will not be provided to the City. Where such plans and specifications are not in compliance with zoning ordinances, traffic safety standards, and other applicable ordinances, codes, regulations, determinations and ratings, Grantee shall modify or revise such plans and specifications so as to achieve such compliance. At the request of the City, Grantee shall reasonably relocate facilities within technical design constraints where such relocation will not result in additional cost to Grantee. d. 'Two-Way Capability. Any Cable Television System that Grantee shall choose to design for two-way capability shall be designed so as to permit the future implementation of upstream signal carriage. e. Parental Control. Grantee shall provide a parental control option, trap or other device to Subscribers requesting the capability' of removing objectionable video Programming from any Cable Television Service or any Premium or Pay-Per-View Channel not subscribed to that is scrambled or otherwise withheld from any Subscriber. Grantee may charge for any such devices. f. Emergency Alert System. Grantee shall provide emergency alert system ("EAS") capability consistent with the EAS rules set forth the FCC's rules governing cable television systems. g. Standby Power. Grantee shall provide standby power generating capacity during utility power outages at its CableTelevision System control center and at all Headends. Upon activation of each phase of a rebuilt Cable Television System, Grantee shall maintain standby power Cable Television System supplies at each fiber optic node. AT&'r' Franchise V2 (1/18/01) -5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 8. Grantee Support for EG Access and Local Oriqination. a. The Cable Television System shall also be capable of ensuring that noncommercial, educational and governmental ("EG") Programming can be distributed on the subscriber network. Grantee shall designate Channel capacity on the Basic Cable Television Service tier for educational and governmental ("EG") programming and for Local Origination programming. Grantee shall initially designate three (3) Channels; one (1) Education Channel; one (1) Government Channel, and one (1) Local Origination Channel. b. In the event Grantee is required by federal law or regulations to change the Channel number of an EG Channel, Grantee shall provide thirty (30) days advance notice to the City and its customers. Should Grantee desire to change the Channel number for any other reason, Grantee shall notify the City of such change and the reason for the change at least sixty (60) days before the proposed change. c. Whenever programming, whether of performances, notices or any other broadcast content, of any EG Channel occupies less than ten (10) hours of programming per day for six (6) days per week for a continuous period of not less than twelve (12) consecutive weeks, the City shall permit Grantee to utilize unused Channel capacity of that Channel under the following conditions: (1) Any request from Grantee to use any fallow capacity designated for a EG Channel must be submitted in writing to the City. (2) The City shall approve the request from Grantee to use fallow Channel capacity if it finds that: (i) the utilization of the Channel is as represented; (ii) Grantee has not acted in violation of any of the provisions of the Franchise regarding utilization of the Channel; and (iii) there are no special circumstances which would justify the denial or delay of implementation of the use of the Channel. If the City fails to act On Grantee's request within thirty (30) days, it shall be deemed approved. After approval, Grantee may continue to utilize the Channel for any other purpose it so chooses, consistent with the Franchise, until the City reasonably determines that all or a part of such Channel is needed for EG Programming. (3) Should the City reasonably determine that all or part of such Channel is needed for EG Programming, the City may require Grantee to fully or partially relinquish Grantee's use of said Channel provided that Grantee shall be given not less than sixty (60) days notice to relinquish same. d. The EG Channels shall be under the exclusive management and editorial control of the City. The City shall have sole responsibility for the Programming of the EG Channel(s) provided by Grantee, including without limitation, the carriage of Programming on the Channel(s) and the establishment and administration of all rules, regulations and procedures pertaining to the use and scheduling of the Programming presented over the Channel(s). The Channel(s) shall be used solely for non-commercial, governmental or educational Programming. The City may designate a representative, such as an access corporation, to. use and administer said Channels, with all of the attendant rights and AT&T Franchise V2 (1/18/01) -6- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 obligations provided to the City.hereunder. · e. Grantee shall provide an adequate Local Origination access production studio equipped with sufficient portable and stationary equipment so as to allow production of videotaped and live. Programming. The Local Origination studio shall be located and operated within thirty (30) miles of the City. Grantee shall operate and manage the Local Origination Channel, and shall have editorial control over all Programming on the Local Origination Channel. f. Grantee shall provide one (1) free cable connection' and free basic cable service to (a) each public building specifically set forth in Exhibit A, and (b) to each public and private school building within the Franchise Area, which is passed by the activated Cable System subject to Grantee's line extension policy specifically set forth in Section 5. Grantee shall be required to make only one (1) standard installation at one (1) point reasonably convenient to use at each facility in question and Grantee shall not be required to wire the entire facility or to provide more than one (1) outlet at no cost. In the event Grantee provides cable modem (or equivalent equipment) data service over the Cable System, within one (1) year from the date that cable modem data service is being offered commercially in the Franchise Area, each public and private school shall be provided one (1) cable modem and data service at no cost. Such service may not be resold by said public or private school, or used for any for-profit or commercial activities. Nothing in the foregoing shall be deemed, however, to prevent the County or' other public entity from distributing the signal, at its own expense, throughout each such public building, and/or public or private school. g. Equipment. (1) Within ninety (90) days of the effective date of this franchise, Grantee shall provide equipment to the City, or its cash equivalent at the City's sole option, to enable the insertion of live or taped programming at City Hall onto the EG channels provided by Grantee. In' addition, Grantee shall provide equipment to enable the production of local video programming. Grantee shall provide up to $100,000 for the equipment specified in this Section. Such equipment shall be owned and maintained by the City. Grantee shall be obligated to initially provide training in the utilization of this equipment and to replace said equipment during the term of the franchise should it become obsolete or inoperable due to ordinary and reasonable wear and tear. (2) City and Grantee agree that the cost of equipment provided under this section are not franchise fees. 9. Bonds and Insurance Coverage. a. Performance Bond to City. During the term of this Franchise, Grantee shall file with the City Clerk and maintain in full force and effect a corporate surety bond or other adequate surety agreement approved by the City Attorney in the amount of Fifty Thousand Dollars ($50,000.00). The bond or agreement shall be so conditioned that in the event Grantee shall fail to comply with any one or more of the provisions of the Tustin City Code or of the Franchise granted to Grantee, then there shall be recoverable jointly and AT&T Franchise V2 (1/18/01) -7- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 severally from the principal and surety, any damages or loss, or costs suffered or incurred by -the City as a result thereof, including reasonable attorneys"fees and costs of any action or proceeding, and including the full amount of any compensation, indemnification, costs of removal or abandonment of any property or other costs which may be in default, up to the full principal amount of such bond. Said condition shall be a continuing obligation during the entire term of the Franchise and thereafter until Grantee shall have satisfied in full any and all obligations to City, which shall arise out of or pertain to, said Grantee. The surety shall be licensed in California and maintain a Best's Key Ratinq Guide (latest edition) Financial Size category of VII or better and shall be rated Grade "A" or better. b. Insurance. Grantee, at its sole cost and expense, for the full term of the Franchise (and any extension thereof), shall obtain and maintain at minimum all of the following insurance coverage: (1) Types of Insurance and Minimum Limits. The coverage required herein may be satisfied by any combination of specific liability and excess liability policies. (i) Workers Compensation and Employee Liability Insurance in conformance with the laws of the State of California for the statutory limits. (ii) Grantee's vehicles, including owned, non-owned (e.g. owned by Grantee's employees and used in the course and scope of employment), leased or hired vehicles, shall each be covered with Automobile Liability Insurance in the minimum amount of One Million Dollars ($1,000,000.00) combined single limit per accident for bodily injury and property damage. (iii) Grantee shall obtain and maintain comprehensive or commercial General Liability Insurance coverage and shall include, but not be. limited to, coverage for premises operation, explosion and collapse hazard, underground hazards, contractual insurance, broad form property damage, independent contractors, and personal injury liability. The limit of such insurance shall be at least One Million Dollars ($1,000,000.00) combined single limit liability for personal injury and property damage. (iv) City may, by resolution, from time to time, reasonably increase said insurance to the amounts which other contractors operating within the public right-of-way in a manner similar to Grantee and operating in the jurisdiction of City are required to provide so long as said increased coverage is reasonably available. (2) The City and its officers and employees shall be named as additionally insured by endorsement at no cost to the City. (3) Within forty-five (45) days from the effective date of this Franchise, Grantee shall furnish proof to the City that satisfactory policies of insurance described above are in place issued by companies licensed in California rated. Grade "A" or better and Class VII or better by the latest edition of Best's Key Rating Guide. AT&T Franchise V2 (1/18/01 ) -8- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 (4) All insurance policies shall provide that in the event of material change, reduction, cancellation, or non-renewal by the insurance carrier for any reason, not less than thirty (30) days notice will be given to the City by registered mail of one (1) copy of a written notice of such intent to cancel or not to renew the coverage. An authorized agent of such insurance carrier shall provide to the City, on such schedule as is reasonably requested by the City, a certification that all insurance premiums have been paid and all coverage are in force. If for any reason Grantee fails to obtain or keep my of such insurance in force, the City may, but shall not be required to, obtain such insurance, in which event Grantee shall promptly reimburse the City premium cost therefor plus one and one-half percent (1 1/2%) monthly interest thereon until paid. 10: Customer Service. a. Grantee shall meet the customer service standards adopted by the Federal Communications Commission (FCC), the State of California, and any additional standard mutually agreed upon between Grantee and the City. b, provide, In addition, to the extent that FCC or State regulations do not already so (1) Grantee shall maintain sufficient service personnel and equipment for Grantee to be able to take action upon customer service calls in the manner specified herein. Grantee's service office shall be open to receive inquiries or complaints for Subscribers during normal business hours, and in no case less than 9:00 a.m. to 5:00 p.m., Monday to Friday, excluding legal holidays, and shall have local, non-toll telephone service for subscribers in the Franchise area during such times; provided, however, that such hours may be lessened upon the prior written consent of the City Manager provided that local, non-toll telephone service continues to be available during such times; and (2) Grantee shall maintain a service repair force sufficient to respond within a reasonable time to any individual interruption of service and also a sufficient installation force to minimize the delay for service installation. Any service complaint from subscribers will be investigated and acted upon as soon as possible; and (3) Grantee shall provide a telephone answering system to receive all construction and service complaints. The telephone number of the local office shall be listed in the telephone directories serving Tustin. The telephone service shall be operable and shall possess sufficient capacity to accept complaints twenty-four (24) hours a day, seven (7) days a week; and (4) Grantee shall keep a maintenance service log running a three (3) year period, which will indicate the nature of each service complaint, its location, the date and time it was received, the disposition of said complaint, and the time and date thereof. This log shall be made available for periodic inspection by the City. Grantee AT&T Franchise V2 (1/18/01) -9- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 shall provide a copy of this log within ten (10) days of the written request of the City. 11. Indemnification. a. Grantee shall indemnify and hold harmless City from all damages, penalties, judgments and liability of any kind, and defend all claims, actions or causes of action arising as a result of Grantee's operation of the Cable Television System, regardless whether any act or omission complained of is authorized, allowed, or prohibited by the Franchise, to the extent such damages, penalties, judgments, claims, actions or causes of action arise out of or are caused by the act or omission of Grantee, its officers, employees, or agents. Upon demand of City, made by and through the City Manager, Grantee shall appear in and defend City, its officers, employees and agents in any legal action, whether judicial, administrative or otherwise, with respect to which City is entitled to indemnification hereunder. b. City agrees to indemnify, and hold harmless Grantee, its affiliates and their respective officers, directors, employees and shareholders from and against any and all damages penalties, judgments and liability of any kind, and defend all claims, actions or cause of action arising as a result of the use of the EG access Channels. This indemnity shall not apply with respect to any Programming provided by Grantee and which is carried on the EG Channels. 12. Periodic Review of Performance and Quality of Service. a. At City's sole option, City may hold a public hearing at which Grantee shall be present and shall participate, to review the performance and quality of Cable Television Service of the Cable Television System. The reports required herein regarding Subscriber Complaints, the records of performance tests andthe opinion survey report shall be utilized as the basis for review. In addition, any Subscriber may submit comments or Complaints during the review meetings, either orally or in writing, and these shall be considered. b. Within thirty (30) days after the conclusion of the public hearing, City may issue a report with respect to Cable Television System performance and quality of Cable Television Service. If any noncompliance with the Franchise is found, City may direct Grantee to correct the noncompliance within a reasonable period of time in accordance with the provisions of the Enabling Ordinance. c. Failure of Grantee, after due notice and opportunity to cure, as set forth in the Enabling Ordinance, to correct the noncompliance shall be considered a breach of the Franchise, and City may, at its sole discretion, exercise any remedy within the scope of this Franchise considered appropriate. 13. Privacy. As of the effective date of this Franchise, Grantee shall not market mailing lists with names and addresses of subscribers unless Grantee has provided Subscribers with notice and an opportunity to delete his or her name from the mailing list. 14. No Recourse Against City. Grantee acknowledges that City would not have granted this Franchise if it were to be liable for monetary damages for any act AT&T Franchise V2 (1/18/01) -10- 1 2. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 performed in granting it. In general, City and Grantee may pursue any remedy at law or equity available, including but not limited to specific performance, for the breach of any provision of this Franchise, except that City, its officials, boards, commissions, agents and employees, shall not be liable in monetary damages to Grantee, or to any successor in interest of Grantee, or to any other Person, and Grantee covenants not to sue for monetary damages or claim any monetary damages based upon any act or omission by the City, its officials, boards, commissions, agents and employees, in the course of reviewing and approving this Franchise or in the process of granting this Franchise. 15. Underqroundinq and Co-location. In all areas of the City where all electric utility and communications facilities are underground, the Grantee shall place its cables and distribution equipment underground. When all existing aerial utilities in any City area are converted to underground construction, such that both electric and communications utilities are underground, the Grantee shall replace aerial facilities with underground facilities concurrently and in cooperation with similar programs of the telephone and power utilities, provided that Grantee is given reasonable notice and access to the telephone and power utilities' facilities at the time such are placed underground. All underground wires or cable of Grantee shall be placed in conduits or other materials approved by the Director of Public Works. Amplifiers in Grantee's transmission and. distribution lines may be placed in appropriate pedestals provided that approval has been obtained from the Director of Public Works before excavation. Where conduit facilities are available and co-location of Grantee's Cable Television System facilities with the facilities of other public utility providers is feasible, the City may require Grantee to co-locate Grantee's Cable Television System facilities with such other public utility providers in such available conduit facilities. 16. Acceptance. Within thirty (30) days after the effective date of this Ordinance, Grantee shall file with City its written, unconditional, non-contingent acceptance of the Franchise granted by this Ordinance and its agreement to be bound by and comply with all the requirements hereof. The acceptance shall be signed by a person duly authorized to act on behalf of Grantee, shall be notarized, and shall have attached thereto a certified copy of an order by the Board of Directors of Grantee authorizing and directing execution and filing of the acceptance. An acceptance that constitutes a qualified acceptance or places other limits or conditions therein shall be deemed to be a nullity. Upon the failure of Grantee to file its unconditional, non-contingent acceptance of the Franchise subject to all its terms and conditiOns within the time period specified above, the Franchise shall be of no further force or effect and there will not be issued an outstanding cable television franchise in City to any of the companies or entities named in this Ordinance. Grantee shall furnish and maintain all bonds and insurance policies required to be furnished pursuant to the Tustin City Code and this Franchise. 17. Severability. If any Section or provision of this Franchise or any ordinance, law, or document incorporated herein by reference is held by a court of competent jurisdiction to be invalid, unconstitutional or unenforceable, 'such holding shall be confined in its operation to the Section or provision directly involved in the controversy in which such holding shall have been rendered and shall not in any way affect the validity of any other Section or provision hereof. Under such a circumstance, Grantee shall, upon the City's request, meet and confer with the City to ,consider amendments to the Franchise to meet the original intent AT&T Franchise V2 (1/18/01) -11- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 of the parties, as the circumstances warrant and unless prohibited by law; provided, however, that Grantee, in its sole and exclusive discretion, is not required to enter an agreement with the City concerning such an amendment. Both the City and Grantee agree to be bound by all terms and conditions of this Franchise except as may be finally .determined to be unenforceable by a Court of competent and appropriate jurisdiction with proper venue over this Franchise, provided that the City or Grantee need not comply with any term or condition of this Franchise or the Enabling Ordinance which it is contesting in good faith by appropriate proceedings. 18. More FavorableConditions. In the event City grants another Franchise for Cable Television Service, subsequent to the effective date of this Franchise, which, in the opinion of Grantee, contains material terms or conditions more favorable or less burdensome than those contained in this Franchise, Grantee shall have the right to require that this Franchise be amended to incorporate Such more favorable or less burdensome terms or conditions in this Franchise. Upon written request of Grantee, the City and Grantee shall discuss in good faith such amendments as may be required to this Franchise. For purposes of this Section, the phrase "material terms or conditions" includes, but is not limited to: term of Franchise; area covered by the Franchise; Franchise Fees; Cable Television System capacity measured in MHz; number of EG Channels; grants or equipment provided by Grantee to City and public schools, Drops provided by Grantee at City public buildings and public schools; liquidated damages, insurance, and performance bonds. 19. Remedies. At the time of issuance of this Franchise, it is impractical to reasonably ascertain the total extent of monetary damages that may be incurred as a result of the breach by Grantee of its obligations under the Franchise. Without the provisions of this section, the actual monetary damages for which the Grantee would be liable, could greatly exceed the specified amount of liquidated damages. Therefore, the parties have agreed, after good faith negotiations, to fix the amount of liquidated damages, in lieu of any other monetary damages recoverable by City, as provided herein. If Grantee is in material default under the terms of the Franchise, City shall give written notice of such default to Grantee. Grantee shall have thirty (30) days from receipt of such notice to cure the material default or to agree in writing with City upon a method and time that such default shall be cured. If the material default is not cured within thirty (30) days from the receipt of the notice, or, if such material default is of a nature that reasonably requires longer than thirty (30) days to cure, within such other reasonable time as is reasonably agreed to between the parties, the City Council of City may assess Grantee and Grantee shall be liable for liquidated damages in the sum of Two Hundred Dollars ($200.00) for each calendar day on which the Grantee is in such material default, from and after the date Grantee fails to cure the material default. Said liquidated damage sum shall be severally applicable to each calendar day of delay in compliance with the provisions of construction and separately applicable for each calendar day of delay complying with any other provisions of the Franchise. Notwithstanding anything to the contrary herein provided, such liquidated damages shall in no event exceed the sum of One Hundred Thousand Dollars ($100,000.00)in the aggregate. 20. Alternative Remedies. Neither the termination of the Franchise nor liquidated damages shall be deemed to be the exclusive remedy for breach of the Franchise. Neither the right to assess liquidated damages nor the assessment of liquidated damages AT&T Franchise V2 (1/18/01) -12- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 shall be deemed to bar or otherwise limit the right of City to obtain judicial enforcement of Grantee's obligations by means at law or in equity. 21. Termination of Franchise for Cause. The following material breaches of the obligations of Grantee under the Franchise shall constitute grounds for termination of the Franchise by the City Council pursuant to the provisions of the Enabling Ordinance. a. The willful failure to make any payments required under the Franchise and/or to provide City with required information in. a timely manner as provided in the Franchise from and after thirty (30) days' written notice from the City of Tustin. b. Any other act or omission by Grantee which materially violates the terms, conditions or requirements of the Enabling Ordinance or this Franchise or any order, directive, rule or regulation issued thereunder, and which is not cured within thirty (30) calendar days following mailing to the Grantee written notice of the violation or within such period beyond the thirty (30) calendar days as is reasonable. For purposes of this Section, the violation of a "material" provision of the Franchise shall mean defects in Grantee's performance of its obligations under the Franchise that have pervaded the whole of the understanding between the parties or that are so essential as to substantially defeat the object that the parties intended to accomplish. c. Should the Franchise be terminated as provided herein, any resulting transfer of ownership shall be conditional upon payment of an equitable price for the Franchise to the Grantee for the Franchise, as set forth in the Cable Act, 47 U.S.C. § 537. 22. Termination for Non-Renewal. If renewal of the Franchise is denied, or if termination results from the operation of Section 23 hereof, and City acquires ownership of the cable television system or effects a transfer of ownership to another party, any such acquisition or transfer of ownership shall be conditional upon payment of the fair market value of the Franchise, as set forth in the Cable Act, 47 U.S.C. § 537. 23. Non-Enforcement. Grantee shall not be relieved of any obligation to comply with any of the provisions of the Franchise or any rule, regulation, requirement or directive promulgated thereunder by reason of any failure of City or its officers, agents or employees to enforce prompt compliance. 24. Franchise as Contract. The Franchise shall be deemed to constitute a contract between Grantee and City. Grantee shall be deemed to have contractually committed itself to comply with the terms, conditions and provisions of the Franchise, and with all rules, orders, regulations and determinations applicable to the Franchise which are issued, promulgated or made pursuant to the Provisions of this Franchise. The Franchise shall not be construed to constitute a contract of adhesion. 25. Utility Pole. This Franchise shall not be deemed to expressly or impliedly authorize Grantee to utilize poles owned by the Southern California Edison Company, Pacific Bell or any c~ther public or private utility which are located within the streets, without the AT&T Franchise V2 (1118/01 ) -13- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 express consent of such utility. 26. Force Majeure. Any time limits provided for either party's performance hereunder shall be extended for and throughout such additional period of time as such performance is prevented or delayed due to strikes, lockouts, acts of government beyond the party's reasonable control, acts of God, wars, riots, insurrection or abnormal force of elements or other causes beyond the party's reasonable control; provided, however, that in no event shall any such extension be deemed to have occurred unless (a) the party whose performance is delayed shall have given prompt notice to the other party of the occurrence of the event of delay; and (b) the applicable period or periods of time within which such other party may exercise its rights hereunder shall be commensurately extended. 27. Effective Date of Ordinance. (30) days after its passage. This Ordinance shall become effective thirty PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin, California, held on the~ day of ,2001. ATTEST: Mayor City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) §§ CITY OF TUSTIN ) PAMELA STOKER, City Clerk of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Ordinance No. __ was duly and regularly introduced and read at a regular meeting of the City Council held on the~ day of ~, 2001, and was given its second reading and duly passed and adopted at a regular meeting held on the~ day of ,2001, by the following vote: AYES: NOES: ABSENT: COUNCILPERSONS: COUNCILPERSONS: COUNCILPERSONS: PAMELA STOKER AT&T Franchise V2 (1/18/01) -14- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 City Clerk City of Tustin, California AT&T Franchise V2 (1/18/01) -15- A :3::"- I- o Z · 0.> m .1 .I .t .t ,, .I .I .1 o o o o o o o o SU=~g~nN % ~% % i- z 0 0 crj uJ .-.-0 EXHIBIT D TELECOMMUNICATIONS MANAGEMENT CORPORATION FRANCHISE COMPLIANCE REPORTS ! ! ! ! ! Report to the City of Tustin, California Community Attitudes Toward Cable TV A Telephone Survey of Cable Television Subscribers Research by etrok February 18, 2002 Contents I. Executive Summary 1 Results ........................................................................................................................................ l Format Of This Report ............................................................................................................... 2 II. Satisfaction With Cable 3 Overall Satisfaction .................................................................................................................... 3 Installation ................................................................................................................................. 4 Repair ....................................................................................................... i ................................. 5 Picture Reception ....................................................................................................................... 7 Telephone Response .................................................................................................................. 9 Billing ...................................................................................................................................... 10 Changes in Customer Service ................................................................................................... 10 Local Cable Service Compared With Service In Other Communities ...................................... 11 Problems with AT&T Equipment ............................................................................................ 12 III. Local Cable Programming 13 Interest in New City Government Programming ...................................................................... 13 Appendix A: Methodology Appendix B: Data Tables Appendix C: Open-Ended Responses Appendix D: About etrok Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research · iii I. Executive Summary From January 21 through February 4, 2002, under the direction of the City of Tustin, California, and its consultant, Telecommunications Management Corp, Off'OR conducted 402 telephone interviews with a random sample of AT&T Broadband cable television subscribers within the City. Subscribers of the cable service provided in the City by Cox Communications were not interviewed for this study. The data from these interviews were used to assess several research questions developed by the city. How satisfied are subscribers with the overall past performance of AT&T? How satisfied are subscribers with AT&T services related to installation, repair, picture reception, telephone response, billing and other aspects of customer service? What interest exists for various types of new local programming the City might produce for the cable system? Results Results of this study lead to the following conclusions: ~1 A majority of AT&T subscribers in Tustin are generally satisfied with their cable service. Four out of five said they were at least "somewhat satisfied" that they were getting their money' s worth from cable. About 91% of subscribers said they were satisfied with AT&T's overall performance. ~ The lowest relative levels of satisfaction were recorded by subscribers for "programming" with 76% at least "somewhat satisfied." D Few subscribers reported problems with their initial installation of service. Turn-over of subscribers is low. ~1 Fourteen percent of Tustin subscribers called AT&T for repair service in the past two years. Of these, nearly 90% said the repair was made by the next day. Nine out of ten rated the quality of the repair work as "good" or "excellent." ~1 One-fifth of subscribers reported some problem with picture quality in the past year. The most common problem was "picture not sharp." ~1 On average, subscribers experienced a total loss of picture less than one time in the past year. D About one-fifth of subscribers had reason to call the cable company in the past six months. Of those, 4% reported difficulty getting the company on the phone, mainly due to "put on hold a long time." Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research · I I. Executive Summary ~ About 40% of Tustin subscribers said customer service has gotten better since they became a subscriber. About 10% said customer service has gotten worse. ~1 When asked about possible programming the City of Tustin might produce and present on the cable system, greatest interest was expressed for "Job Listings," "Documentaries about Local Issues," Tustin High School Programming," "Local News" and "Calendar of Events." Format Of This Report A detailed discussion of all survey results is presented in the following Sections 11 and III. Methodology used to conduct this research is presented in Appendix A. Throughout this report, subscriber responses are presented in charts. The data upon which the charts are based can be found in corresponding tables in Appendix B. Appendix C provides the text of open-end responses given by interviewees. 2 · etrok Reseorch Report to Tustin, California II. Satisfaction With Cable Overall Satisfaction A majority of Tustin cable subscribers reported satisfaction with their current cable service. [Chart 1 below and corresponding Tables I and lA in Appendix BI Chart 1: Satisfaction With Cable Getting money's worth Reception Programming Number of channels Reliability of service Clarity/accuracy of bills Conduct of employees Repair service Getting through on the phone Overall performance ~~~~ 79.9 c, ~~~~ M 85.5 76.3 % ~~ 87.( ~ ~ 86.~ ~~~ ~ ~l~ 91 ~~! 9C ~~~~ 81.0' % % % .1% 93.3 % % % .4 % 0% 20% 40% 60% 80% 100% mSomewhat or Very Satisfied Four out of five subscribers of the AT&T service said they were at least "somewhat satisfied" they were "getting their money's worth" from cable service, including 26% who said they were "very satisfied," they were "getting their money's worth." Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research · 3 II. Satisfaction With Cable Rating the "overall performance" of AT&T, 91% were at least "somewhat satisfied," with about 41% of subscribers "very satisfied." Among the individual categories of service, relatively lower satisfaction was recorded for "programming." Detailed subscriber responses regarding installation, repair service, picture reception, customer service and telephone response are presented later in this section. Installation Most subscribers started receiving cable service at least six years ago, confirming a low turn-over or "churn" rate among Tustin subscribers. This indicates a higher subscriber stability than found in other cable systems. Chart 2: Year First Subscribed 2002 2001 2000 1999 1998 1997 1996 1995 or before 0.5 % ~,~_~., 9.0 % I ~j~ 6.6 % ~4.3 % ~4.0 % ~9.3 % ~14.9 % ~~_~~ 51.3 % I , 0% 20% 40% 60% 80% 100% Less than 6% of Tustin subscribers said they had problems with the installation of their cable service. Chart 3: Had Problems With Installation ~5.5 % 0% 20% 40% 60% 80% 100% 4 · etrok R®seorch Report to Tustin, California Repair Fourteen percent of Tustin subscribers said they had called AT&T within the past two years for repair of service, for reasons other than problems with system-wide blackout or power outages. Chart 4A: Subscribers Needing Repair Service In Past 2 Years I ~14.0 % 0% 20% 40% 60% 80% 100% Of those reporting a problem, nine of ten subscribers felt that response time to their request(s) for repair was "good" or "excellent." Chart 4B: Rate Repair Service Response Time Excellent Good Fair Poor 0% 20% 40% 60% 80% 100% Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research · 5 II. Satisfaction With Cable Nearly 90% of subscribers requesting repair service said the repair was made by the next day. Chart 4C: Repair Service Response Time Same day Next day Same week Longer than same week , , , ~10.2 % ~~~~ 79.6 % ~8.2 % 2.0 % 0% 20% 40% 60% 80% 100% Nearly nine out of ten subscribers rated the quality of repair work as "good" or "excellent." Chart 4D: Quality of Repair Work Excellent Good Fair Poor ~ 56.6 % I la il 134.0 % ~5.7 % ~j~ 3.8 % 0% 20% 40% 60% 80% 100% 6 · etrok Resec~rch Report to Tustin, California Picture Reception One-fifth of Tustin subscribers said they had problems with picture clarity or reception in the past year. Chart 5A: Clarity or Reception Problems in Past Year 21.1% 0% 20% 40% 60% 80% 100% Of those having a problem, over a third said the problem occurred at least every few days, with 14% reporting the problem occurred constantly. Chart 5B: Problem Occurred...* Constantly Every few days Few times a month Rarely ~13.9 % ~t 22.8 % ~ ~! 25.3 % I 0% 20% 40% 60% 80% 100% * Of those who had reception problen[, in past year. Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research · 7 II. Satisfaction With Cable The most common problem for subscribers was "picture not sharp," experienced by 71% of those reporting a problem. Chart 5C: Type of Problem Experienced* Pictures not sharp Snowy picture Ghost images/shadows or double images Lines on screen Picture flipping ~~~~ 70.5 % ~120.5 % ~16.7 % ~3.8 % B1.3 % , ,, ,, 0% 20% 40% 60% 80% 100% * Of those who had reception problems in past year. On average, subscribers report that their cable service had gone out completely, for 30 minutes or more, less than once in the past year. Chart 5D: Number of Times of Total Loss of Picture (30 minutes+) in Past Year 0 2 4 6 8 10 8 * erroR Research Report to Tustin, California Telephone Response About one-fifth of Tustin subscribers had a reason to call AT&T in the past six months. Of these, most, 87%, reported that the cable company employee they talked with was helpful and courteous, with 92% saying their request received the proper attention. Table 6A: Telephone Response Called the cable company in past 6 months Individual was helpful and courteous * Request received proper attention * 86.8 % 91.9 % Had problems getting through on the phone * 0% 20% 40% 60% 80% 100% *Of those who called company on phone. Of those that called, just 4% had trouble getting through on the phone to AT&T. The most common problem getting through was "put on hold a long time." Table 6B: Telephone Problems* Put on hold a long time Line busy No answer Told to call back I t 0.0 % 0.0 % 0% 20% 40% 60% 80% 100% * 0f4.2% of those who had problem getting through on phone. Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research · 9 II. Satisfaction With Cable Billing Problems with billing errors were few with less than 4% reporting problems. Of those, nearly all, 93%, were resolved to the customers' satisfaction. Chart 7: Billing Problems Had problems with cable bill Problem resolved * 3.6 % ~~~~ ~ 92.9 0% 20% 40% 60% 80% 100% *Of those who had billing problem. Changes in Customer Service Subscribers were asked if, since becoming a subscriber, they believe the AT&T customer service has "gotten better," "stayed the same" or "become worse." Most subscribers felt that customer service has "stayed the same," but 40% said it has "gotten better" compared with 10% who felt that customer service has "become worse." Chart 8: Changes in Customer Service Gotten Better Stayed the Same Become Worse 0% 20% 40% 60% 80% 100% 10 · etrok Research Report to Tustin, California Local Cable Service Compared With Service In Other Communities Over a third of subscribers, 41%, said they had also subscribed to cable in another community. Of those, half felt the cable service in the other community was "worse," while 12% believe the previous service was "better." Chart 9: Cable Service in Other Communities Was...* Be~er The Same Worse 12.4 % ~ ~ 35.4 % ~ ~~ 52.2 % 0% 20% 40% 60% 80% 100% * 0f41% who subscribed to cable in another community. Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research · 11 II. Satisfaction With Cable Problems with AT&T Equipment Only 3 % of subscribers report a problem with AT&T equipment. Not being able to record programs on a second channel and not being able to use the remote control supplied with their TV were the most common complaints. Chart 10: Problem with AT&T Equipment* Can't record on other channel Can't use ow n TV remote control Converter malfunction Remote control difficult to use/confusing Other ~~130.8~ I 7.7% 0% 20% 40% 60% 80% 100% * 0f3% who had problem with AT&T equipment. 12 · etrok Research Report to Tustin, California II1. Local Cable Programming Interest in New City Government Programming AT&T cable subscribers were given a list of types of local government programming that the City of Tusfin might produce and present on the AT&T cable system. For each type of possible programming, subscribers were asked if they would like to see "less," "about the same" or "more" of the category of programming. Greatest interest was expressed, in descending order, for "Job Listings," "Documentaries about Local Issues," Tustin High School Programming," "Local News" and "Calendar of Events." [Chart 11 on next page.] Telephone Survey of Cable SUbscribers - February 18, 2002 efrok Research · 13 III. Local Cable Programming Chart 11' Local Government Programming Preferences Job Listings Documentaries about Local Issues Tustin High School Prograrrrring Local New s Calendar of Events Doc umentaries about Tustin History Corrrnunity Event Coverage Call-In Talk Show s College Credit Telecoures Theater and Music Performances Local Bection Prograrrmng Local Sports Coverage Government Meetings [] Less El About the Same [] More 22,0%~~ 40,3 % I I I r 21.5% J 25.8 % I 0% 20% 40% 60% 80% 100% 14 · efrok Research Report to Tustin, California Appendix A: Methodology Data were collected by telephone interviews in January and February, 2002. The interviews were conducted by trained interviewers under the supervision of etrok. The samples were created from a systematic random sample of phone numbers selected of Tustin addresses from the most recent telephone directory. The last four digits of each number were replaced with a random number to ensure unlisted phone numbers were included in the sample. The resultant numbers were recorded on a computer database and randomly ordered for use by the interviewers. The questionnaires for the subscriber surveys were converted to CATI--Computer Assisted Telephone Interviewing--format. Each interviewer read questions and recorded responses using interconnected computer workstations. Interviews were conducted in Spanish for non-English speaking subscribers. The interviews were conducted from January 21 through February 4, 2002. Only adults 18 years of age or older were interviewed. Only Tustin cable subscribers served by AT&T Broadband were interviewed. A total of 402 interviews were completed with male and female adults from AT&T cable subscribing households. Keep in mind limitations of sample surveys when interpreting the results. Each number is only an estimate. The actual population value may vary. The error associated with the subscriber sample used in the analysis (402) is approximately +4.9%. The values are higher (worse) where lower sample sizes are used, and lower (better) where average responses other than 50% are encountered. Smaller samples may be encountered for refusals of a single question. For example, the question regarding total loss of picture for 30+ minutes was answered by only 335 subscribers for an error of +_5.3 %. Lower responses are also encountered when respondents are routed around a question. The questionnaire in this study was developed by otrok in cooperation with City of Tustin officials and its consultant, Telecommunications Management Corp. Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research · A-1 APPENDIX B: Data Tables TABLE 1: Satisfaction With Cable Getting money's worth Reception Programming Number of channels Reliability of service Clarity/accuracy of bills Conduct of employees Repair service Getting through on the phone Overall performance 79.9 % 85.5 % 76.3 % 87.0 % 86.3 % 91.1% 93.3 % 90.9 % 81.0 % 91.4 % TABLE lA: Satisfaction With Cable (Detail) 26.4 % 53.5 % 16.6 % 3.5 % 54.5 % 31.0 % 12.5 % 2.0 % 29.3 % 47.0 % 17.0 % 6.8 % 35.7 % 51.3 % 10.8 % 2.3 % 43.9 % 42.4 % 9.5 % 4.2 % 63.3 % 27.8 % 5.8 % 3.0 % 62.8 % 30.5 % 5.0 % 1.8 % 49.1 % 41.8 % 7.4 % 1.8 % 38.7 % 42.3 % 16.4 % 2.7 % 41.1% 50.3 % 6.9 % 1.8 % Getting money's worth 'Reception Programming Number of channels Reliability of service Clarity of bills Conduct of emploYees Repair service Getting through on the phone Overall performance Telephone Survey of Cable Subscribers - February 18, 2002 efrok Research B-1 APPENDIX B: Data Tables TABLE 2: Year First Subscribed Year first subscribed: 2002 2001 2000 1999 1998 1997 1996 1995 or before 0.5 % 9.0 % 6.6 % 4.3 % '4.0 % 9.3 % 14.9 % 51.3 % TABLE 3: Cable Installation TABLE 4: Re Called company for repair within two years [ 14.0 % J Response time: * ExcellentI Good / Fair / Poor~ 56.6 % 34.0 % 5.7 % 3.8 % 10.2 % Repair was made: * Same day Next day Same week Longer than same week 79.6 % 8.2 % 2.0 % 47.2 % Quality of repair work: * ExcellentI Good J FairI Poor[ 39.6 % 9.4 % 3.8 % * Of those calling for repair. B - 2 etrok Research Report to Tustin, California APPENDIX B: Data Tables TABLE 5: Picture Rece Clarity or reception problems in past year Problems occur: * Constantly Every few days Few times a month Rarely Problems experienced: ** Pictures not sharp Snowy picture Ghost images/shadows or double images Lines on screen ~ Picture flipping 21.1% 13.9 % 22.8 % 25.3 % 38.0 % 70.5 % 20.5 % 16.7 % 3.8 % 1.3 % Number of times of total picture loss (30 minutes+) in last year Average 0.8 ] * Of those experiencing clarity or reception problems. ** Of those experiencing reception problems, more than one response allowed. TABLE 6: Tele ,hone Res Called the cable company in past 6 months Individual was helpful and courteous * Request received proper attention * Had problems getting through on the phone * 19.4 % 86.8 % 91,9 % 4.2 % 100.0 % Phone problem: ** Put on hold a long time Line busy No answer Told to call back 33.0 % 0.0 % 0.0 % * Of those calling cable company in past 6 months. *' Of those having a phone problem, more than one response allowed. Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research B-3 APPENDIX B: Data Tables TABLE 7: Billin! Had problems with cable bill in past year Problem resolved to customer satisfaction *l 3.6 92.9 * of those having a billing problem. TABLE 8: Chan es in Customer Service Since becoming a subscriber, customer service has: Gotten Better 39.7 % Stayed the Same 50.1% Become Worse 10.2 % TABLE 9: Cable Service in Other Communities Cable service in other community was*: Better 12.4 % The Same 35.4 % Worse 52.2 % * Of 40.3% having also subscribed to cable in other community. B - 4 etrok Research Report to Tustin, California APPENDIX B: Data Tables TABLE 10: Problem with ~nt Had problem with equipment provided by AT&T[ 3.2 38.5 30.8 Problems experienced: * Can't record on other channel Can't use own TV remote control Converter malfunction Remote control difficult to use/confusing Otherl 15.4 % 7.7 % 7.7 % * Of 3.2% experiencing equipment problem Telephone Survey of Cable Subscribers - February 18, 2002 efrok Research B - 5 APPENDIX B: Data Tables T.a BLE 11: Lo, I Preferences Job Listings Documentaries about Local Issues Tustin High School Programming Local News Calendar of Events Documentaries about Tustin History Community Event Coverage Call-In Talk Shows College Credit Telecoures Theater and Music Performances Local Election Programming Local Sports Coverage Government Meetings; , , 22.0 % 37.8 % 40.3 % 24.8 % 35.8 % 39.5 % 24.8 % 39.0 % 36.3 % 21.3 % 44.5 % 34.3 % 9.5 % 57.3 % 33.3 % 21.4 % 48.8 % 29.8 % 21.5 % 52.8 % 25.8 % 34.3 % 40.3 % 25.5 % 18.0 % 57.5 % 24.5 % 26.8 % 50.5 % 22.8 % 20.0 % 58.8 % 21.3 % 20.5 % 64.0 % 15.5 % 15.5 % 71.5 % 13.0 % B - 6 etrok Research Report to Tustin, California APPENDIX B: Data Tables TABLE 12: Married Gender: Male Female 68.8 % I 45.8 % 54.2 % Average number of people in householdl Average number of children under 18l Average age 3.8 j 42.9 S~P~E SlZ~L 4o2 Telephone Survey of Cable Subscribers - February 18, 2002 efrok Research B - 7 Appendix C: Open-Ended Responses "Other" clarity or reception problems [4 responses] blank picture cable off just bad picture power outage "Other" problems with AT&T supplied equipment [1 response] just too "high-tech" Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research · C-1 Appendix D: About etrok otrok is a Wyoming-based consulting and research faro providing a variety of services to public and private sector clients throughout the United States in the areas of communication and telecommunication. Established in 1988, the people behind etrok represent decades of first hand, practical experience in research, management, media, advertising and public policy development. Public opinion surveys for local governments and other clients are one area of expertise. otrok also provides consulting and research services in the areas of telecommunication policy and applications, market analysis and government regulation of cable TV. otrok is also publisher of Cable TV LawManager, the leading computerized roles service for the cable industry since 1990. Available by subscription, Cable TV LawManager is a Windows application providing the full text of the Telecommunications Act of 1996, the cable acts of 1992 and 1984, FCC roles plus the full text of key FCC reports and orders, all in an easy to use and fully searchable format. The program is updated at least 10 times a year to ensure subscribers have the latest roles and orders on their computer screen. For more information about any of our services, contact: efrok 970 West Broadway, Suite 550 Jackson Hole, WY 83001 307.734.0200 307.734.2734 fax surveys @ etrok.com Telephone Survey of Cable Subscribers - February 18, 2002 etrok Research · D-1 CITY OF TUSTIN FRANCHISE COMPLIANCE AUDIT AT&T BROADBAND February 2002 TELECOMMUNICATIONS MANAGEMENT CORP 5757 Wilshire Blvd. · Suite 635 Los Angeles, CA 90036 (323) 931-2600 Fax (323) 931-7355 ~TUSTIN PUBLIC WORKS DEPT. i CITY OF TUSTIN FRANCHISE COMPLIANCE AUDIT AT&T BROADBAND February 2002 C:\Tustin\Reports\Compliance~cr-2002(att).doc TABLE OF CONTENTS I. INTRODUCTION ........................................................................................... 1 II. CABLE FRANCHISE COMPLIANCE ........................................................... 2 A. Regulatory Ordinance ....................................................................... 2 B. Franchise Grant Ordinance ............................................................... 8 C. Compliance with California Law ........................................................ 14 D. Telephone Response ........................................................................ 15 III. CONCLUSIONS .......................................................................................... 17 APPENDICES A CITY'S EVALUATIONS OF QUALITY OF AT&T'S SERVICE B CALIFORNIA GOVERNMENT CODES C AT&T BROADBAND CUSTOMER SERVICE STANDARDS AND PRIVACY NOTICES D FEDERAL COURT RULING ON AT&T REQUIREMENT FOR BINDING ARBITRATION E AT&T BROADBAND TELEPHONE RESPONSE TIMES 1999, 2000 AND THE FIRST HALF OF 2001 I. INTRODUCTION The City of Tustin (the City) is provided with cable services by two cable operators that serve different areas of the City. One of the operators, AT&T Broadband (AT&T) is the successor in interest to MediaOne of Los Angeles, Inc. (MediaOne), which holds a franchise granted by the City that expires July 6, 2002. The City, in 1982, adopted a cable television systems regulatory ordinance, which is Article 7, Chapter 4 of the City Code. Pursuant to this ordinance, the City, in 1984, granted a cable franchise to Communicom of Tustin. The franchise was transferred to American Cablesystems of California, Inc. in 1987. American Cablesystems was subsequently acquired by Continental Cablevision, Inc. (Continental). The city, by Ordinance No. 1002 adopted in March 1988, renewed (and amended) the cable franchise with Continental. Continental later was acquired by U.S. West, and subsequently was spun off as MediaOne. AT&T acquired MediaOne in 2000, and now operates the City's franchise. Consequently, the current governing franchise documents are Article 7, Chapter 4 (the regulatory ordinance) and Ordinance No. 1002 (the franchise grant ordinance). The City has retained Telecommunications Management Corp. (TMC) to provide consultant assistance in evaluating the performance of AT&T. One of TMC's tasks is to conduct a franchise compliance audit to determine if AT&T has complied with the requirements of its franchise. This report provides the results of the compliance audit of AT&T with respect to: · Requirements of the City's cable regulatory ordinance (Article 7, Chapter 4) · All obligations of the cable franchise ordinance (No. 1002) · Applicable California and Federal laws and regulations · Cable industry practices and procedures. I!. CABLE FRANCHISE COMPLIANCE As noted above, the two local documents that contain specific franchise obligations and requirements are: The City's cable regulatory ordinance, Article 7, Title 4 of the City Code · The franchise grant ordinance (No. 1002). TMC, in preparation for the audit, reduced the requirements of these documents to chart form, as shown on Figures 1 and 3, and requested AT&T to complete the charts, indicating the status of each requirement. A. Regulatory Ordinance The "AT&T Comment" column of Figure 1 indicates AT&T's response to each item. in general, AT&T claims compliance with all significant franchise requirements. TMC requested the City to verify and/or comment on AT&T's responses. Figure 2 indicates the City's reply. As can be noted, the City disputes the letter and/or the spidt of AT&T's compliance, with some issues. A discussion of each item of Figure 2 follows. Sections 7412.c. 1 and c.3 The number of complaints received by the City related to AT&T's "lack of timely response to complaint" indicates a serious question as to whether AT&T has met, and currently meets, the Code requirement, Section D below indicates AT&T's clear failure to meet telephone response time standards. If telephone response is poor, it is virtually impossible to provide good service to customers. Additionally, the City has addressed the issue of poor customer service by AT&T on numerous occasions, so that the City's concerns should be' well known to AT&T. Appendix A contains evidence of the City's concerns (and AT&T's awareness), as follows: Staff Memorandum, dated May 1, 2001, for the Council public hearing to discuss the renewal of MediaOne's cable franchise. The memorandum lists a variety of customer service problems. Minutes of the Council meeting of October 16, 2000 (attended by Mr. Del J. Heintz and Mr. Stephen D. Sawyer, both Directors of Local Government Affairs for AT&T) in which a number of subscriber complaints were discussed. Minutes of the Council meeting of November 6, 2000, in which additional cable subscriber complaints were aired. Staff Memorandum, dated November 20, 2000, in which it was recommended that a preliminary assessment be made to deny franchise renewal, based upon "MediaOne's failure to cure the problems after timely notice." Based on this material, it appears clear that AT&T representatives have been aware, for a period of at least two years, of the City's position that customer service was perceived as inadequate. Section 7412.d.2 This section reads, in its entirety, as follows: "VVith respect to the basic television services, the Grantee shall provide all subscriber services, and a tie-in connection, without cost, when the system passes such facilities and as designated by the Council to (a) public schools and community colleges serving the City, and (b) buildings owned and controlled by the City, used for public purposes." It is noted that only one "tie-in connection" is required to each facility. If the cable operator has provided this drop, then it is in compliance with the franchise requirement. It may be true that if a school wishes to utilize cable programming in several different classrooms, each participating classroom must be cabled to connect with the drop connection. Further, each classroom must have a Converter (and a television) to select the desired programming for viewing. The current franchise does not require the operator to wire classrooms, nor to provide multiple connections. Consequently, the usefulness of a single drop may be limited, unless the School District allocates the funds necessary to cable all classrooms in a manner compatible with the strength of signal at the drop location, in any forthcoming franchise renewal negotiations with AT&T (or the new entity, AT&T Comcast), the City may wish to negotiate support from the operator to achieve this goal. 8 LU ~ n,, Section 7412.e.2 The Code wording on the issue of interconnection is as follows: "Wherever it is financially and technically feasible, the Grantee shall so construct, operate and modify the system so as to tie the same in to all other systems within and adjacent to the City." The City's comments indicate that the Cox and AT&T cable systems have been physically interconnected for PEG Access programming, but that the signal quality resulting from the interconnection has been problematic. The ability to have all cable subscribers in the City able to view PEG Access programming is an important issue, not only in Tustin, but also in all communities served by more than one operator. It may be advisable, in any renewed franchise, to require that each cable operator provide individual fiber optic links from PEG Access program origination locations to the operator's headend serving the City. This would allow each cable operator to be held responsible for the PEG Access signal quality it delivers, without opening the door to "finger-pointing" between the operators. In any event, AT&T appears to be in compliance with the franchise requirements as stated. B. Franchise Grant Ordinance Figure 3 indicates AT&T's comments on the chart listing the requirements of Ordinance No. 1002, the franchise grant ordinance. Again, AT&T claims that all franchise requirements have been met. Figure 4 indicates the City's position on AT&T's compliance. As above, there are some differences of opinion on some issues, as indicated below. Section 9 AT&T's response indicates that it reimbursed the City's franchising costs for the 1988 renewal. The City indicates that AT&T informed the City that it is not required to do this in the future, and might deduct such reimbursement from franchise fees. So far as franchise compliance is concerned, the cable operator complied with this requirement in 1988, but is indicating that it may not due so in the future. When and if the AT&T franchise is renewed, the relevant grant ordinance at that time will need to address this issue. 0 o~ .- oB d Z uJ Z Z >_~ zg.~ ,," Section 17 It appears that AT&T's statement that it has met this requirement is based on the word "capability," which means that bi-directional interconnection theoretically is capable of being achieved, with additional cost, but has not yet been activated. It also appears, however, that the School District has not requested this feature, so that AT&T is not in breach of the requirement. Section 18 The items listed by the City are summaries of the concerns noted in Appendix A. The information contained in Appendix A, combined with numerous discussions of MediaOne's and AT&T's quality of customer service and the perceived lack of any substantive response, are causes for serious concern. C. Compliance with California Law Appendix B contains sections of the current California Government Code that relate to cable systems and, in some cases, to other "video providers" that are not franchised locally (such as satellite and microwave systems). The following Government Code sections are applicable to the performance of cable system operators: Section 53055 Requires each operator to establish customer service standards. Section 53055.1 Requires operators annually to distribute a notice describing the customer service standards. Section 53055.2 Requires operators to report annually on its performance "with regard to meeting its customer service standards." This report shall be included in the notice required by Section 53055.1. Section 53056 The franchising authority may establish penalties for failure to distribute the required notices. Section 53088.2 Establishes additional customer service requirements for all video providers. Section 53055.5 through 53088.8 Establishes procedures for customer late fees. 14 Appendix C contains copies of notices sent by AT&T to cable subscribers, relating to customer service standards and privacy, and also channel and rate information specific to Tustin. In general, the notices appear to meet the requirements of California law, with the exception of Section 53055.2, which requires the cable operator to report annually on its performance with regard to meeting its own standards. It should be noted, however, that one recently instituted AT&T practice may violate California law. In Appendix C, the first sheet titled "Important Legal Notice," AT&T requires that unresolved disputes with customers be settled by "final and binding arbitration." This is further discussed in Paragraph 10, "Dispute Resolution" of the notice "Policies and Practices." Appendix D indicates that a federal judge in California has recently ruled that binding arbitration is illegal. Although this ruling dealt with AT&T telephone service, it would appear reasonable that the same standard would apply to cable. As Appendix D indicates, AT&T plans to appeal the ruling, but at the present time the requirements would appear to be invalid. Further evidence of the invalidity of this binding arbitration provision can be found in the language of California Civil Code Section 1722. This section of the Civil Code establishes procedures for cable subscribers to take cable providers to small claims court. The final provision of Section 1722 reads: "(d) Any provision of a delivery, service, or repair contract in which the consumer or subscriber agrees to modify or waive any of the rights afforded by this section shall be void as contrary to public policy." D. Telephone Response Appendix E contains a summary of AT&T's telephone response performance for the years 1999, 2000 and the first half of 2001. The data reflect AT&T's Westem region, not the City of Tustin, so that only general conclusions can be reached. As can be seen the percentage of calls answered within 30 seconds (which should exceed 90%, based on the FCC standards) dropped to as low as 50.15% in the third quarter of 1999. Performance improved somewhat in 2000, but was less than 90% for two quarters, and also for the first two quarters of 2001. If the performance in Tustin was similar to that for the Westem Region, it would mean that the FCC standards, which are not considered particularly rigorous, were not met for seven of the last ten quarters. This telephone response history is considered unacceptable. 15 Furthermore, as noted above, if the cable operator is not responding promptly to telephone complaints or inquiries, this adversely affects overall customer service. If a call is delayed or lost, the customer problem that led to the call is not addressed in a timely manner. AT&T's poor telephone response record, therefore, must be reflected in inadequate customer service, as the City's comments indicate. 16 III. CONCLUSIONS The following conclusions arise from TMC's audit: The City disputes AT&T's compliance with specific requirements of the City Code in the areas noted above. (2) The City disputes AT&T's compliance with specific requirements of its franchise ordinance in the areas noted above. (3) The City has provided notice to MediaOne/AT&T, on numerous occasions over the past two years, that customer service was and still is considered to be inadequate. (4) AT&T's telephone response times, for 1999, 2000 and the first half of 2001, did not meet industry standards as established by the FCC, and are evidence of inadequate customer service that confirms the City's position. (5) AT&T has complied with the requirements of Califomia law, except in terms of notifying subscribers of its performance in meeting its customer service standards. (6) The City, if it wishes, may establish penalties for future non- compliance with (5) above. (7) AT&T's requirement that customer disputes by resolved by binding arbitration is inconsistent with California law, and has been found illegal by a federal court. 17 APPENDIX A CITY'S EVALUATIONS OF QUALITY OF AT&T'S SERVICE N___ ~,TE: May 1, 2000 ~ TO: FROM: SUBJECT: WILLIAM A. HUSTON, CiTY MANAGER PUBLIC WORKS DEPARTMENT PUBLIC HEARING TO CONSIDER'THE RENEWAL OF A CABLE TELEVISION FRANCHISE AGREEMENT WITH MEDIA ONE GROUP, INC. ~ce'.'~ith the proCedures es{ablished bY:{:fie adop.t.!gh'.'0f City' COuncil ResolUtion No. 99'4'~;. the citY~;~°uncil will'.Conduct 'a~"public heating to b'0-:6'Sider the 'renewal of the CATV fran~'h'ise for abdia 'One Group, inc. The purpose'.0f the he.~.r.':i'~i'~:i'is t°"identify the city's future cab:i~related 'n~eds and tOi; review the. performa~'ce of 'tl, i'~'"i:;:f~anchisee dudng th~' Current fran~h~iSe agreement. :' ' . :,i;!!ii'~!?i: "..?ii;!~i!!:::?i.:'ii~iii!'' ' ':' . ..' RECOMMENDATION Staff recommends that upon conclusion of the public hearing, the City Council authorize staff to prepare' and' send a letter requesting a franchise agreement renewal proposal from Media One Group, Inc., that responds to the issues identified by the City Council, citizens and staff. FISCAL IMPACT Media.One subscribers pay a 5% franchise fee, which amounts to approximately $188,000 in annual revenue to the City. There. is no fiscal impact associated with this action. BACKGROUND Media One Group, Inc ("Media One") possesses a non-exclusive cable television franchise covering the entire City that expires July 6, 2002. Federal Communications Act of 1934 (the "Act") as amended by the Telecommunications Act of 1996 requires the City to hold formal renewal proceedings if a franchisee requests it within specified times...The Act further authorizes the City to commence informal proceedings for renewal should the cable operator fail to request the formal proceedings outlined in the Act. On June 21, 1999, the City Council adopted Resolution No. 99-49 setting the specific procedures to use while processing the Cox Communications cable television franchise renewal. The resolution also stated that the City desired to establish a uniform procedure for consideration of Cable television franchise renewals. Therefore, staff is utilizing the same process for the Media One franchise 'renewal as. was and is being utilized 'for the Cox Communications cable television franchise renewal. The resolution s attached to this report aS Attachment A. The first step in the process is to conduct a public hearing to review past · . performance and to identify future community needs prior to soliciting a formal proposal from the current franchisee. Media One and Cox are the only cable television service providers in the City. Both franchises are non-exclusive agreements, whereby the City has granted each provider the right to use the public right-of-way to provide cable television services. Media One's service area encompasses the area of the City that is generally west of Browning Avenue. The current franchise agreement with Media One began April 8, 1988 with a term' of approximately 15 years to terminate on July 6, 2002. The original agreement Was granted to Continental Cablevision, Inc., and was later assigned to Media One in April 1998. Staff offers the following general observations regarding past franchise performance by Media One: GENERAL CUSTOMER SERVICE Staff receives an unusually large volume of calls regarding customer serviCe issues such as billing, service interruptions or equipment maintenance. Over the last two years, Staff has received an approximate average of five calls per day. Common customer complaints include: 1. Frequent and pr. oionged television service interruptions. 2. Rudeness and indifference is displayed by Media One customer service representatives. 3. Customer service staff is not knowledgeable about products and procedures. 4. Telephone service callS are not answered or are ansWered by a recording only. 5. Long h01d times. 6. Failure to respond to scheduled on-site technical service calls. 7. Various customer billing issues (i.e.; high rates, Iow service levels, billing errors). The calls that staff received are heavily weighted towards issues one through five.- Media One has, in the past year, centralized its cuStomer services operations and has reduced the unanswered call and hold time complaints but still has not resolved many other common complaints. Media One generally attributes these problems to a poorly executed shift of local telephone CustOmer services representatives to their main office in E! Segundo. Staff believes that Media One has now increased staffing, but has not properly trained that staff to handle customer calls efficiently and courteously. In addition,' Media One recently instituted a management reorganization that has 'diminished staff's ability to facilitate the resolution of customer complaints. Staff was not informed of these changes until well after theY occurred and received only a verbal notification several weeks thereafter. SERVICE OFFERING/PROGRAMMING Media One's system is currently capable of offering a maximum of approximately 55 channels. in contrast, the Cox system offers over 100 channels, digital services, telephony, 'and broadband Internet service.. Media One's channel capacity and limited programming is restricted due to the technical limits'of the current systems that Media One utilizes. Listed below is a summary of the customer complaints: 1..Limited channel/programming offerings. 2. Frequent service-outages (often widespread) 3. Broadband Internet service is not available. Media One is currently in the process of completing a major plant upgrade to prOvide over one hundred channels of analog and' digital cable television service, broadband lnternet service and telephony services. While this rebuild has been.underway for Cios~ to a year, neither staff nor the public has received any firm commitment for a completion date of this rebuild. It is notable that the Tustin system (City and unincorporated) is the last system to be rebuilt in the greater Los Angeles market area. The rebuild also raised a policy issue related to the use of City right-of-way and the resulting aesthetic effect of a proliferation of above ground utility appliances. This issue was resolved last fall when the City Council adopted the above-ground cabinet ordinance. In'addition, Media One has recently hired a new engineering firm and construction contractor in an attempt to move the rebuild forward. Staff is generally pleased with this recent effort and .looks forward to the completion of the project. Based on the preceding review of past performance; staff recommends that the Council require Media One to submit a franchise renewal proposal addressing the' following issues: .1. Provide live coverage of City Council meetings and a regularly scheduled rebroadcast at least 2 times, including 1 broadcast during a weekday prime time and I broadcast during the weekend, including transmission to the Cox Communications system. . · Provide a full time local access channel dedicated to the City of Tustin with coordinated or joint programming provided by Media One and Cox. 3. Provide assurances in the agreement for payment of franchise fees for data/intemet services. 4. Explicitly agree to utilize current Federal Communications Commission requirements for customer service. . Provide documentation, satisfactory to the City, of company Customer service quality assurance efforts and of participation by ali customer services staff in training in customer relations. 6. Subject the agreement to future City ordinances and City Code amendments. 7. Provide free lntemet access to City'facilities, iibraries,'and schools in the Media One service area. 8. Agree to provide open lnternet access in Tustin should it become available to any municipality in the State of California. 9. Continue to maintain a local customer service office. 10.. Maintain'a locally acceSSible,television program production facility. 11. By June 30, 2003, upgrade City Council television production facilities, as mutually agreed, for a minimum cost of $10,000 and a maximum cost not to exceed $25,000 for equipment and installation services. 12. continue to provide qualified staff to provide production services for City Council meetings. While 'these requirements are not identical to the requirements that were identified for Cox Communications, they do recognize the history of past services provided by Media One and other issues unique to Media One. Resolution No. 99-49 requires that the proposal be · submitted within 90 days. As with Cox Communications, staff proposes that the City Council set the Media One proposal due date at 120 days from the date of this public hearing. Director of Public Works/City Engineer Attachment ~ City Council Resolution 99-49 .Public Works Department that the new well can be constructed on site for approx. $1 million. The amt of reimbursement will be the actual cost of construction determined at the completion of the project. It is anticipated the City will repay the district over a ten-year pedod at 7% interest rate thru annual pmts of $142,377.00. As a first order of business if this amendment is approved, we will prepare a pre-design report recommending the location, size and depth of the well and construction costs for the City's approval prior to proceeding with design. Prior to the construction of the 17th St. Desalter Metropolitan Water District, the OCWD, and the City of Tustin determined that it was more costly to reclaim contaminated water -than to purchase the same amt from Metro Water Dist. However, it was also mutually agreed upon that .it was beneficial to everyone to increase the yield from the groundwater basin, and the parties entered into a groundwater recovery program agreemt. Under this agreemt, Metro WD agreed to provide a financial incentive of up to $250 an acre-foot over the cost of purchasing water directly from them for each acre-foot produced from the desalter. That is, with the price of purchasing water from Metro at $435 an acre-foot, they would provide an add'l $250 and purchase water from the plant for up to $684 per acre-foot. Under this agreement, the capital cost and the replacement cost, the capital cost' of the original desalter and the replacement cost of well #1 are. allowed in the calculation of the cost of producing water. The ad'l construction costs for the replacement-Well, well #1, will add about $60 per acre-foot for the production of water. Since. the inception of the project, the financial incentive that we've used has been in the range 'of $90 to $130 of the $250, with the replacement well adding the $60 we will still be under the maximum financial incentive, which will enable the groundwater recovery program to cover the cost of the new well. And with that I'd be happy .............. The proposed amendment provides for the financing, design, and construction of a new well at the Seventeenth Street Desalter to replace Well No. 1. The design and construction of the replacement well will be funded through a loan from the Orange County Water District in accordance with the terms of the original Agreement for the construction of the Seventeenth Street Desalter and this amendment. Additionally, the Metropolitan Water District (MWD) of Southern Califomia is providing financial incentives for the Seventeenth Street Desalter under a Groundwater Recovery Program and has indicated that the construction of a new well is an eligible cost under the existing Groundwater Recovery Program Agreement. As an eligible cost, it is anticipated that the project loan will be paid through the financial incentive' provided by MWD on each acre-foot of water produced annually at the Desalter. It was moved by Potts, seconded by Saltarelli, to approve the amendment to the Agreement between 'the Orange County Water District and the City of Tustin for the Construction, Operation, and Acquisition of a Groundwater Desalter Project, for Replacement of Failed Well, and authorize the Mayor and City Clerk to execute the amendment on behalf of the City. Motion carried 5-0. 12. AT&T BROADBAND SERVICE RATES JT Asked speakers to not be duplicitous...just to say I'm unhappy---or hopefully something positive to say which is always welcomed. We are here to air our concems. Asked reps to come forward ..... Representatives from AT&T-Broadband, Dell Heintz and. Steve Sawyer;. Directors of Local 3ovt Affairs, re new cable services rate structure .......... DH Tonight we're here at the Council's pleasure, we don't necessarily have a full-blown Minutes - City Council October ~.6, 2000 - Pase 4 presentation--we were asked, in fact I'll tell you a short story--it was at an L.A. City Council Meeting and I got an urgent page from Councilmember Doyle, which I called back real quick out of the Council meeting. We're here at your pleasure this evening, hopefully we've brought some matedal to the back of the room that'll answer a lot of the questions for you. Our info is nOt any different than when we were here a month and a half ago. The same info still exists and it's still our opposition. We're hoping that we could put a perspective for you tonight. In the last 9 days we have deployed approx. 1620 customer homes in and around Orange CountyFFustin with new set top converters with about 3000 to 3500 set tops in total. And our concem is just like yours tonight: we want to know what you're hearing, we want to give you some straightforward answers and we'll go that route. So Mr. Mayor, Mayor Pro rem, Council, staff, Mr. Huston, Mr. Sedet, Mr. Doyle, I'm yours. MD ! was the inquisitor last time I may as well start this time. JT Be nice. MD I'm not going to beat on the counter like I did last meeting. Well, let's see, where do i start? i've had one positive comment. We'll Start there, that pretty 'much tells it like it is. Individual informed me his rates aren't going to go up and he gets a few more channels. Other than that, that's about all I can say positive-wise. I have a letter dght here that was sent to me personally by a young lady, and I use that term loosely, Marjorie Veigh, but she was my high school teacher, and so was her husband. She does not live in the city of Tustin, however, she lives in the County. She indicates that on 3 diff. Occasions she made apptmts to have your individuals come up and change her boxes. Each time was a no-show. Finally on the 4t~ time some polite gentleman called her up and said, sorry about the problem, etc., but her indication is that her bill is going to go up 20% and like I say, Marj does not live within the city but I know her personally. The biggest problem i'm having and I think everybody that's sitting here, is the purported rate increase. Now whether it's a ,rate increase or not, that's what I want you here for, to explain to these people whether it is or it is not. They're going to have to pay rent on the boxes, if that's an increase, which it apparently might be, do they have to pay for the remote control? Then that's an increase. They get more channels, whatever the problem is. I have rec'd in fact I was, OCN called me last week and was going to interview me on Friday but unfortunately the young lady got ill, to talk about this very thing in reference to you and the complaints I've had from my senior citizens. Now re my senior citizens, basically where these 4 people live they don't have senior citizens. Okay? And I'll use the term roughly--they're yuppies--I'm not. i live in Old Town. Basically Old Town has senior citizens, and if you have 2 TV sets and you're going to raise their rates $7.20' just on the box, plus the cost of the remote control, tell me dght now, to a senior citizen that might be 4 meals. Now I know AT&T is a large, large company. You probably make more money at AT&T than the State of California and probably 14 states in the U.S. But here you're going to take FOOD, and i'm using that term from my own standpoint, out of my senior citizens so they can haVe their only contact with the outside wodd becauSe your cable is going.to go up. It's time for AT&T, either here in Tustin, Paducah, Wisconsin, Boise, to pony-up and say okay, we're going to set something up for these senior citizens. The bali's in your court, sir, and I'm telling you dght now, you don't want my senior citizens, once again I call them my senior citizens, to get on your case about this, because we are grey wolves, and we're like'on a cadbou that's got a bad leg, okay? Right now you're the caribou, okay? We're gonna get you, we're gonna knock you out, and it's time for AT&T, now I've contacted Mr. Sanchez over here, and he said there's a way we can get around this, where we, the City, might be able to put up a fund for that. ! said, no, that's good info, but ! want YOU, AT&T, one of the largest co's in the entire wodd, to do 'something, do you understnd where I'm coming from? Now if you've got an answer for my senior citizens to where they're not gonna have their rates raised, they're gonna get the same service, etc., then I want to here it, and I assure my sr citizens out there on TV land, you're listening,I hope you're watching, and another thing that upsets me, now that I'm on a roll, a friend of mine.got a Minutes - City Council October :].6, 2000 - Page 5 little doorhanger, saying you will be here at these hours, not will you call,-but you will be here and if you don't you're not gonna have TV for 24 hrs. And he has a businessmhe has 4 tv's. It's a sports place. He's gonna be out of tv's for 12 to 24 hrs while they make the changeover. Why don't we just lock his doors and you pay him his days wages and we'll call it even. You don't tell somebody ~that you will be' there to have it changed over.' It doesn't work that way. You're supposed to be community service oriented like I am in the restaurant business. You come into my restaurant say I want prime rib I say well I'll talk to you in 5 hrs, then you be back--it won't work that way. AT&T is one of the larges companies, and it's time for them to step up to the place re my senior citizens in this town. Cause you take food out of their mouth, ! don't want to go there. I'm gonna become your worst enemy and I'm almost that way now. Okay, I'm .pretty close. Okay? You gotta an answer to any of those questions? DH '1 have responses for you Michael, thank you very much--first off, senior citizens .are customers of ours and they're very important to us also. About 1-1/2 mo ago, do we realize that you can get basic one serVice without a converter box for $8.79 a month. If it's about money, and senior discounts and not having to have a cable, box, there is a service that offers about 25 channels that doesn't require anything but a' TV and $8.79 a month plus the tax. That service has always been available and it's still available as part of this package. Md What program would you get for that $8.79? DH That consists primarily of the off-air stations: Channel 3 here, channel 33, OCN, CSPAN, ABC, CBS, NBC, UPN, FOx, on and on.. Jt Can they increase the pkg on that or is that only limited on that pkg? DH Them are '3 levels of service, Mr. Mayor, and that level service is $8.79 a month and it's about 22 or 23 channels. They can add more channels, but it takes a cable box. That's not gonna make you satisfied, I'm not gonna walk out of here tonight, Counsel, and ,tell you I'm gonna take the cable boxes out of Tustin--that is not going to happen'it's part of our technology, it's part of the business plan, and we're gonna go forward with the cable boxes, but we have an alternative for those senior citizens wh© are on fixed incomes, and the alternative, it hasn't changed--that pdce is not going up this year and there's no box charge. Tw Thru the chair?. I had a lot of calls too, probably more from young families who are really upset and are calling me about getting the same service now for $9 to $16 more, having to be there and having the boxes and remotes. Is it true, then, that for those that have had maybe expanded cable, now their fees are $9 to $16 more for the exact same service? Dh Well, that's not quite accurate. It's 27 channels additional--we're adding 27 channels to the lineup in Tustin and here's the real math, and it's in the direct mail piece and the letter we send to ali of the customers, if you're a Basic 2 customer, your price is going to be going up $.95 per customer per month, if you have Basic 3,... it's a $.12 increase. If you have a cable box already, and about 5000, about half the customers in Tustin already have a box. The box is going up $.20 per month, and the remote is going up $.05 per month. So the theory is, $9.60 may be an erroneous number. If they have 3 TV's, that could be correct. But they're also getting 27 channels. The other Side of the coin, ill could just take a step forward, there are another 7-8,000 customers out there who for the last 18 months have been screaming for the history, learning and HBO premium channels and all the other channels that this new rebuild has brought to Tustin. And let's not forget about that 80% °ut them who have' been yelling for the last 2 yrs, "give me more". And we're satisfying that need this time around.. I would love to be satisfying 100% of the customers but box technology is Minutes - City Council October 16, 2000 - Pas:e 6 the future--I don't care if you're with teletv, the phone co., direct TV, or AT&T, a box of some sort is the future of technology, no matter where you go. JP Two people did contact me and said that they were thrilled with the ad'l channels, that they really enjoyed that, that they hadn't compared the cost yet but they also said that the add'l things that they could get, it was tremendous, and what you promised for the future, the technology, now they said the man didn't show up on time but he credited them $20 towards her next bill. They had some positive things to say and mostly it's been negative and I'm willing and I might not be on the Council by the time the contract, is to give you the chance and then we answer people's concerns because this technology is much better than what we had before, when we've always been promised. But then, if it doesn't improve how it did over the other company in the past, if I had to vote dght now today I wouldn't renew the contract, i'd be willing to give you a chance because I am headng some other positive things out there and I think people need a little time to adjust, and see, and I know there's probably a lot of people on the negative' side tonight, but in all fairness, the people that have experienced it, that actually have it, the two that contacted me, were real pleased. .. DH That's the other question. We've deployed almost 3500 boxes in the' last 9 days. Can someone give me names and phone numbers--we want to talk to them personally. Steve and I have a philosophy. Jt& tw They're here. They're raising their hands. DH Steve and i have a philosophy. We call them first--if we can get names and phone numbers we'd be glad to speak to them personally. Jt Hold on, I'm gonna let all you talk. Let Dell finish. The one objection and I actUally have a number but the one is the card that people receive and the doorhanger that's been put on their door. It seems as tho what it says is that by Wed. is your fill or kill day--you get it in by Wed or we're shutting your tv off. The problem is the times that they've given available. To working couples who have to be there between the times that you've put down there and can't do it, there's no flexibility within your. system to work around that and provide the extraordinary, service ! told you about last time. You need to work with these people because these working families can't do it dudng the day and if it's an 8 to 5 thing and they gotta take off work to put in a new system, that's not fair. And that's not providing good service. Is there some accommodation you can make in the nighttime hours for a pedod of 5 to 8:00 where technicians can come out and do this for people? Or Saturday? Dh · Absolutely--all those, yes. Jt And can you extend the date when their TV's will go off, because this Wed. is the date. Dh No, and I'll tell you why. I don't mean to tell you no just to be obstinate. This is a sample of the mail piece we send to every one of the customers. Yes Mr. Doyle, it's confusing but we have a lot of info to tell them--all the new channels, okay? We then attempt a phone call. If we get a live body, We schedule. Something that's Convenient for them. If we don't get a live body we leave a msg on the machine. The last ditch effort is to hang a doortag telling them that we've got to come through. As an example, today' alone in the City of Tustin, actually in the county surrounding you, we have placed about 352 customerS boxes. Homes, not boxes. We're on a roll. We have a very thorough process-the hit, every day a new fiber optic node Minutes - City Council October 16, 2000 - Page 7 is fired up, it's turned on. We try to be accommOdating with ali three of the contacts. The second thing is, we do these things as late.as 8:00 at night and we schedule apptmts, as many as we can, as late as 8:00 at night, and we do work all day' Saturday. Jt Are you sure? Cause I was told they would not do it beyond 5:00? You will hear that from people out here. Dh Then, that's contrary to past. Jt We need to work on that--that is definitely a big one, and I'm concemed that i've got peoples" TV's going off Wednesday. That's a. concern to me and I'm not concemed for the couples that are Working cause they're not watching the TV, but those folks that are at home and watch TV dudng the day--the seniors, those folks that do that, I know some people that watch soap operas that are going to be real upset. You know, this kind of stuff is important to a lot of people. Dh All their channels will not go offwthe basic' tier of servicetwill remain. It's the higher tier,. Basic 2 or Basic 3 or HBO, their premium services, that require a box. So if for some unfortunate reason, an appointment is missed ..... Jt Just the premium channels are gonna go? Dh Right, exactly. Anything above Basic 2, Basic 3. Jt But they'll have basic service up to the point that they convert over. SS Until we can get back to them--Jeff I wish it was perfect. Are we gonna miss 2 or 3% and make mistakes? Absolutely yes, especially it's the 8t~ or 9t~ day we've been in Tustin. We do have a relatively new crew--we've made a few mistakes. ! can tell you that I'll have personal conversations with the management of that co. this evening and we're making good progress, but we're not perfect yet. As these things roll out, and we'll finish thi§ about December 7~ and December 15t~ we'll be done, and then maybe we can live happy ever after throughout the Christmas season, but this is ugly--it's a technology that they're not comfortable with, it's new, it changes, but if you want the future, whether it be with ATT Broadband or any other competitor, the whole wodd is about a set top box of some sort to deliver those products and services. , Jp Dell, could you fumish the people here a number where they can contact you if they have a problem and/or put it on the TV screen tonight? Dh I'll give em my pdvate phone number. JT Let's listen to some of the questions, as opposed to anger, that might help this along and if you have some issues, please bring them up. So please come up and line up. James Sirkin, Tustin, when ! was at Tustin Tiller Days Fri night ! asked the people at Broadband Why we need the converter boxes, and the answer I got was, 40% of the people in Tustin are stealing cable and it's the only way to stop the theft. When we go out to the curbsite and disconnect it the people reconnect it. 40% of the population of Tustin are thieves in their mind. We must be the crime capital in the western wodd. I object to their forcing us to take this technology. They could have put technology in the curbside boxes that would have controlled 4 or 5 homes at one time. Minutes - City Council October 16, 2000 - Page 8 They're making money on this, just the way the phone co did when they rented us their phones. Mike, you're old enough to remember that, and that's exactly what's going on here. For my house, cause we have 4 TV's, it'll be a rate increase of 52% for just the boxes. They're saying it's recouping that cost, but it's really ali about profit. And that's what's really going on, and we let them ~put in this technology, and now they're us on our own . Adrian Morton, Tustin, .... we live in a Senior Mobile Home park. Okay, you mentioned senior discount--it's not happening. You .have senior discount on the oti'ier side of the city but you don't have it on our side of the city. Yes, it's happened. A fdend of mine transferred his rates from the other side of the city to over them, . and his senior discount was dropped, okay?. · You have a lot of seniors that don't get the discount and they rely on that. Okay, on my Media One bill you give me one cent discount--one cent--thank you! One cent, there it is right there. Okay, another thing, .is your programming--your screen goes on and off dudng the daytime. Will it happen when you get your new technology in? And also, what happened to the Tiller Days parade, yesterday? Usually it's reproduced Sunday and Monday throughout the week. Somebody said your cameras were sabotaged. Okay? It's not on--the Tiller Days parade. That's one of our real important events in the City of Tustin and it's not on. Local programming. Also, there's been a lot of complaints about your rates going up, but we have received hardly any notices over there at the mobile home park and ! know your fiber optic cables are already in, but I'm sorry, you can't buy me with a penney--I put in a dish. Douglas Miller, living in the unincorporated county area. i don't know how AT&T can claim this is technology. When we have cable-ready .tv's and we have to have a box to convert and we have to put one of these on each of our tv's and our vcr's. Item 12 on this little brochure that they left at the dais says something different than the originally publication. Originally they said in order to record another station and watch a station, you may need an additional receiver or an AB switch. This · contradicts it and it says you need both, and I don't understand that. Thank you. Lori Gilbertson, .... that's my brother-in-law, Doug,.and we've been Tustinites for many generations. I've got real scdbbly looking consumer notes, nothing fancy like AT&T has, but what I wanted t o say is I don't think I understand everything about this yet,. it's too new, but I can make a comparison to what I had. We had one of the premium programs that was offered by Media One and had HBO. And I don't know if you can make an exact apples for apples comparison with the way they have their program broken up, but I think my husband and I have definitely determined this will cost us more. And I understand fiber optics' increased span width allows for more content, ! understand that basically, but what i really understand is options, choices, and that our Dept of Justice doesn't like monopolies, and I thought AT&T already leamed that. We have cable-ready TV's and we have not had to deal with a box for years. We have Sony TVs with picture in picture--we're gonna lose that feature. Then, we have to also use their remotes, so now we don't have our sleep timer anymore. We kinda like those things and we paid for those things when we bought nice, cable-ready Sony TVs. We cannot record one channel with our vcr while watching another channel. You lose that option, so we have to use their boxes and we have to use their remotes. I'm kind of surprised they're not making us buy their TV's, your know, it's kind of ridiculous, and I think my husband and my brother-in-law, and an awful lot of us are shopping for satellite programs, and I don't really know yet if we'll save much month to month, but for me at least I feel like I'm an American and I still have choices, cause' there's .a lot of companies out there offedng satellite, so I hope I've given you a little snapshot of how the basic consumer feels around here, Jt One little tdck? Programmable clickers, yOu can buy programmable clickers and they give you.a code that you can Program their unit, so you'll be able to get a multi-function usage. I do that at my house and I know how to ..... it's supposedly easy, it's kind of a pain, but I went with satellite Minutes - City Council October :[6, 2000 - Page 9 too., so. John Dillon, 17574-01 Vandenberg Ln, Tustin,...I sent a letter to the Council. ! think more than anything else my complaint is the attitude. When I went to the Tustin Tiller Days celebration this .Past weekend I can affirm what the previous speaker said, and i was also told that the vast majority of people, customers in Tustin, are ripping off the system and that they're putting in the boxes to stop that pattern of behavior. They said that when they go out on a service call, 2 out of 3 times they find that somebody has spliced into a neighbor's cable service and they make the correction, disconnect the illegal hookup, come back out three days later and it's done again. Well, I would suggest rather than punishing the innocent, that you go after the violaters. This is not how it is done. I also have a picture.in picture TV set and I object that I'm going to have to pay for 2 boxes. I'm frequently away from my residence and I like to tape. I don't subscribe to premium services but'l do like to tape TV shows so that l can switch times and watch other times, and i'm not going to be able to program multiple selections on my vcr, because in order to move from channel to channel you' have to have somebody move the channel selector from Channel 3 to an altemate channel. That's not gonna work with this new setup. Again, I'd like to' tape one and watch another, but all of this, they're telling me we're going to have to have 2 boxes in order to do it. That's a $7.20 increase. We've never needed one before, I understand how increased bandwidth is a service that they can offer, but that's a service that they can offer to a' limited number of subscribers, and if that's the case, then the limited number of subscribers who are'dying to have this expanded bandwidth should be paying for that service and not penalizing the vast majority of people. The high rates, ! mean we're being given a rate increase before they even finish the project and the clickers are going up. and I've never needed any clicker other than the one that came with my TV set. Now I'm gonna need 2 diff. Clickers on top of the other ones I've got. It's absolutely ridiculous. What this is is a tax on the Tustin community that we don't have anything to say about it, and I just hope that City Council will think hard and fast about the monopoly. Thank you. Barbara Webb, First St., Tustin, I would just like to'tell you about my experience with AT&T this past week. I got a little hanger on my.door which is the first thing i've ever rec'd other than a bill from AT&T--I haven't seen another thing. I got it on Thurs saying that they were going to--it had to be changed by Monday, so I immediately called AT&T, they set up an appointment for Saturday. ! was working at the fair, made special arrangements to go home during the time they had set up, I had a voicemail saying "we decided not to do it today after all", so I went back to the fair, and went to the booth. I tried to talk to the man there and he said oh well we could make another appointment, we can make arrangements. Then he got someone on the telephone from the office. The gentleman told me we don't do weekend services and I said what about all the people that work and he said yes that's a problem isn't it. I thought that was sweet. Another thing, we don't, have 33 anymore. Its gone. I don't know if this is being televised I don't know where it's going because it's gone. When I tded to watch the parade on Sunday, eady Sunday Morning I turned it on and the screen is black--it's just like a radio, and I checked it just before I came over here tonight and it's the same way, and ! asked the man about that and he said well we're making some changes, oh, and the most weird thing he told me was that the, right at the beginning of the parade, right after they started filming it, someone sabotaged the equipment and it wasn't filmed anyway, so it wouldn't have done any good if I'd had channel 33. Well that wasn't so, because I talked to Lou Bone and his wife had watched it on Sat. all the way thru,. So I don't know what they're doing, but so far, I haven't gotten anybody out there, haven't gotten anybody to talk to me sensibly--I've gotten one silly story after the other and i'm just fed up with it, .so I don't know where-it goes from here. Good luck. Bobbi Malsted(?) and I got a hanging thing on my door. I .came home last Fri--it said I had until Monday, so I go in and I call them right away as soon as I get into the house, 25 minutes on hold, all Minutes - City Council October ~.6, 2000 - Pase their reps/lines were busy, they finally came on and the gentleman told me it was $4.95 a box--I have 2 TV sets, so that's going 'to raise my bill approx $10,00 plus the clickers, and so somebody was gonna come out, bdng them out, 'and hook it up to my TV set. So he set it for, it was on Mondaywhe said he'd be out Monday to do it between 5 and 7. And so I came home, got off work eady, was there by 5, nobody showed up. So then I called back and another 25 minute HOLD, and I told them what I had experienced and the man said, just a minute let me go figure out what's going on. I was on hold for 10 minutes this time. He came back and said the boxes would not be $4.95, they would be $2.95, I believe, plus the clicker. And so then I get (end of tape)out and he set a date, again on Tuesday they didn't come out because a woman called me on Sat. and said that date on Monday they were going to come out and fix it, which they didn't, and he originally.set it for Tuesday. They never came out that day, so I just said XXX! And I went in and picked up the boxes. Then my son came out and hooked them up for me.. But i don't appreciate making apptmts, they're not showing up, they tell me that they couldn't have made the apptmt for Tues. cause I asked them if they could come out between 5 and 7 and she says I'm sorry, our.appointments are between 4 and 7--1 said could you please make mine at 5 or atter?.' And she says we don't do it that way, we do it from 4 to 7 and I thought, this is a lost cause, i can't go any further.with this. And so they never did come out, ! had to pickup the boxes and have.my son hook them-up. And the. price iR 'going up, about $10 to $12 for my bill, and I really don't want the extra channels--I'm fine with the channels i had. I can't watch all these channels they're giving me. Thank you very much. Earl Williams: I live across the street from living in Tustin--I live in the County, but, so i've lived there for 27 years So as goes Tustin, so I go also. I'm really upset about the fact that AT&T came waltzing in and now my TV, my bill, my cable, will now go up over 33% because I'm paying for boxes and. as people Call them clickers, extra that l really have---I've now got clickers for a vcr and for the old TV set, new box, and I don't know which one I'm Iookin at half the time. The other part of it is that I have to go thru this routine of on-cable and on-TV and I don't know where it's at. As far as the extra channels that they are providing us, I don't know how many of you are interested in the tonight on one of the sports one it was a 1984 championship basketball game between N.C. and somebody else. Other nights there's other things on there, all kings of, 3-4 channels about purchasing or home buying. A number of items that I really don't have an interest in--I'm sorry, i was real happy with what I had before. When I called them about my increase, they said, oh, well, that's kind of, almost too bad, but that's the way it is. 'And I Said well i'm no longer getting some of these other channels that l had before.. "Well they're now premium channels", i said, well I got them before and they said "well, you were missbilled before". So for four or five years I've been missbilled? Well that's pretty great gentlemen, I'm really happy to hear that, that you finally caught up with it, but the fact of the matter is, they did make an apptmt, missed it, called back and said they were coming back in on that. We've got, you know, I paid extra money so I could buy a TV set that had picture in picture, that l could have the recording on it, that l could, cable-ready and all these items, and it isn't worth a pot right nowmyou can't record on the vcr and all these things are real disturbing. How AT&T got into the picture, I don't know, but if they were out of my picture, I'd be happier back with the other system on that. But once again, I'm really unhappy and I don't know what else to do except start looking at disks also like everybody else is, and I'll tell you with this vcr not working, my wife just had surgery on her knee and one of the reasons we were home for your person to be there, but she missed her soaps today, and her wrath you would never know, but I really Jt I told you guys that was a big deal! EW:continued: When she's workin and she missed that soap, you're in for problems. Thank you very much. Minutes-.City Council October :1.6, 2000- Pas:e l! Steven Melvin: Good evening--we've heard a lot of issues tonight and like I keep telling people I'm a techy guy and I'm a details guy. Like Mike Doyle, I live in Old Town--I live over here at Ambrose Lane, and question I have for the AT&T gentleman, is, first of all, will AT&T make the software for their set-top boxes available so that 3rd party providers such as Sony TVs and other set-top box ~developers can develop these sorts of things for a little bit lower cost to our residents. Or does AT&T intend to maintain a proprietary box so that they can control the cost of the set-top box, etc. i end thereby pass them on to our customers? It says you do have to release it? DH: The answer is Yes,'it's Federal law. SM (con't) Okay, when are you guys going to make that available? DH: The set-top has been available retail as of January of this year. SM (con't): Okay, excellent. The second thing, again I'm a details guy and this is more details than a techy sort of thingtbut if you read in the fine pdnt in the back of the little customer guide that they give you, there's some stuff.about the info on the set-top boxes that go back to AT&T. See there's a telephone line that's connected to those boxes whereby they collect certain information, which they say helps us to customize the data and internet services based on the interest of subscribers and helps us to be more selective in the types of commercial communications we address to you, .also known as direct marketing. Later on in the second page under "disclosure" it says, 3-4 mailing lists as described below. We may make your records available to employees, agents and contractors in order to install, market provide an audit service on each occasion access to the information is needed. We'may also occasionally lease our subscriber list to consumer and market research organizations, software vendors and merchants or advertisers offering services to you over the data and intemet access service. Lastly, we may include your name and address on mailing lists and disclose that information for other purposes unless you object to such disclosure. We may disclose that you are among those'that subscribe to cable service or other service." Uh, just a couple of things in the fine print that people might not have noticedtl also noticed that on the 800X receiver NEX guide there is no place to say I don't want you to sell my information--perhaps it's on the contract somewhere in the fine pdnt. Thank you very much. Tw: Thru the chai~ I'd like to make a couple of comments, i think the people that have just spoken pretty much summed up the attitudes and the feelings of the people that I've spoken to in town and basically, they're livid. People are mad about having to pay more, they're mad about having these boxes forced on them, they're mad about the service, they're very, very frustrated and I guess my question is to Madam Attorney, what can we do as a City to rectify or help our citizens that are so upset about what's happened to them? If anything? L Jeffrey: Mayor Thomas and speaking to the whole City Council, unfortunately, this is an area that's not regulated by the City and in fact, because of acts of Congress, it's not even regulated by Congress. So there's not a lot that you can do dght 'now, except certainly write, your Congressperson and certainly ask your presidential candidate what they intend to do about it. But in the short-term, the City is considering renewal of the franchise and this is evidence that goes into whether or not the franchise should be renewed and how the service being provided compares with services provided by others, so certainly the Council can ask that we speed up this process and direct staff to do that. TW: I would make' that motion to direct staff to speed up the proceSs for negotiation. MD Thru the chair?. We have AT&T have now bought out Media One. Minutes - City Council October 16, 2000 - Page :].2 We're coming up with their renewal of their franchise, right? And we as City Council people go AT&T, you have managed to upset 96% of the people in my town--we don't want you to be here anymore. Now we have no cable, is that correct? Unless somebody wants to buy out AT&T? And I don't know who would do that, maybe Richfield Oil or British Petroleum might but I don't know if anybody has got more money than AT&T. So in essence, if we don't give them their franchise, we have no cable, is that not correct? Omar Sandoval: Actually, there are 2 options for the City in that case, #1: the City under law has to · start now renewal proceedings and it is actually public headngs relating to the performance by the franchisee before you can actually determine that you are not going to renew the service. And you gotta remember that the franchise is still good for another 2 yrs before the franchise period ends, so they are still obligated to provide service for 2 yrs before somebody else takes over. And during that time,, when you adopt a resolution of non-renewal, you can also request proposals for other providers to buy them out, uh, actually not buy them, buy their assets in the City of Tustin, and.you have 2 yrs to do that if you wish to do so. Other options include the City buying the system and operating the system and other option is also to negotiate with other providers without going for ~. , proposal for the other prowders .to. buy the system and' there are procedUres, under the FCC where the fair market value of the assets can be determined. I've inquired about that and apparently there are experts that do that rather quickly and you can have a value of the system really quickly and in fact, they have, AT&T and other providers have information with the FCC 'of what they claim their value of the system to be, so, ! mean there's already procedures and ways.that the City can address that issue if we cross that bridge. Jt Thank you very much and you are sir?. OS Omar Sandoval, Deputy City Atty and expert on cable television Tw Omar, you said the City Council could start negotiations at what point with outside contractors? If they chose to do so? OS Well, .the City Council has the option to start that right now, ! mean it would not be advisable · to do so before actually adopting resolution of non-renewal, but you have that option. Jp What I'd like to see is Dell respond to some of the questions and give them a period of time to make the transfer, but with that option in mind, if it doesn't get up and running, we just move forward ' and we'd have to agendize it, and we can do that. Jt We were looking at January anyway, right--wasn't this to come before Council in January to. examine this? So in essence, there's roughly about 2-1/2 months here of rectifying or correcting the. problems that have been identified tonight, and usually when you have this many people here it's part of a broader problem, because there are those that are afraid to come down and confront you, and don't like this kind of a forum to do it. What happens is they will call us on the telephone and yell at us, and then we must yell at you, so this is kind of how it goes. Dell, come on forward both of you, and maybe you can take each one of those, one by one, cause I saw your heads nodding yes and no at various points and I'll give you the floor. STEVE SAVVYER (AT&T): If l could just address a couple of the more recent questions or comments that were made. Uh, we had submitted back to the City at the end of August, first of September, the beginning of our proposed franchise renewal. The City had asked us to respond within, I think it was 120 days. We met that deadline, we submitted Our proposal, we have not heard anything back from the City. So as far as fast-tracking it, I think we're going as fast as the process Minutes - City Council October :[6, 2000 - Page ].3 takes, so dght now the proposed'franchise is back with the City and we're waiting to hear comments. I just wanted to address a couple of the comments that some speakers made earlier with regards to having bought a cable-ready TV with the understanding or the misunderstanding that that automatically allowed you to get all of the cable channels because you bought a cable-ready TV. That is not what cable-ready means. Cable-ready means that you've got a coax adapter at the back of your TV to provide you the hookup for a cable, the coax cable. It doesn't mean you get the cable channels--it just means you have that adapter, so, well okay, .... (male from audience): I had a box over on the other side of town and then they told me ! have a cable-ready TV, so I took my box back to your office---I don't have to have it. S.Sawyer: Okay, then that was in a system where what are called "traps" and I'm sorry to go back .... Jt Let's not have exchanges please. Let him answer. S.Sawyer: 'U'h, but that's the old technology which had what are called "traps" that are placed-out on the cable lines outs in the community which blocked off bandwidth for certain channels. In essence, trapping the signal. That's when you would have to sit at home for 4 hrs or 8 hrs and wait for the cable guy to come out onto your pole to take off the traps or put on the traps based on the type of service you were getting. Okay, with the box, this technology will allow you to do it over the phone, that you can call from work and say "I'd like to get HBO dudng the month of Wimbled.on" and not have to be at home for 4 hrs or 8 hrs and you know, missed appointments. So that's one of the advantages of the converter that allows a 2-way communication to take place that currently doesn't take place, given the old technology. And one last thing is that in every community that we service throughout So. Calif. in both LA and Orange County, this is the type of technology. 'This is only the .next step towards digital which we've already launched in a lot of other communities and that also is requiring another box, not in addition to this, but in replacement of this, and that allows for 200-250 channels similar to what, satellite providers were often beat up as being the monopoly, however, many people have spoken tonight about the choice of a satellite provider, so choice is out there and whatever choice you make,, it requires a converter--it requires a 2-way communication device, cause it's no longer just sending the cable systems out so that you receive it--there's two way communications. Those were the 3 issues that I wanted to at least address and I would be more than happy to talk to more. Jt Did you want to address some of them specifically? DEL HEINTZ: I might have some of the other answers. First off, you know, I try to answer the customers' questions. A lot of things, our business is confusing, it's technologically difficult to understand, gosh there are days that even ! don't understand it and I've been around for a lot of years. Curbside technology our first customer with an issue about putting the technology at the curbside in the vaults: How many people in this room would put their TV set underneath the sprinkler?. When you put technology in the curbsite you run the risk of getting water into that technology and it does not work. Curbside technology for' was a theory about 5 or 6 ~)rs ago. It never panned out--the manufacturers never made, the mfgrs of curbside technology for scrambling channels, so I must deploy a set-top box to control the environment--that's the technology we've chosen. The customer with the concerns about the senior discount: he's correct, if a customer adds services, adds HBO, adds Showtime, or moves to a new location, the senior discount does not go forward, it is not grandfathered. That is a fact. Jt Why would he lose the senior discount if he moves? That part ! don't understand. Minutes- City Council October :~6, 2000- Pase 1_4 S.Sawyer: The way the system is set up now is to provide a senior discount for current seniors on their basic tier of service. The rationale being for discount for the basic tier. If somebody can afford higher tiered service, the rationale is that if they can afford those services, they should not qualify for a senior discount, okay? if there is a move within the City, from one address to another, it's seen as a new account. And the senior discount policy' is to grandfather current seniors that currently get a senior discount, but for NEW seniors and new accounts, that the senior discount will NOT go forward, and that's standard throughout the other services that we service. Jp If they reapply, it still won't go forward? Say they move and they reapply?. SS: It's seen as a new account, and so as new accounts are being treated, you know there are exceptions and, the system isn't perfect, however, that's the way the system is set up, that if it's a new service and technically moving from one part of the city to another, and setting up a new account, a new address, a new account number, it goes into the computer as a new account. Jp But they're still seniors--they should still be able to reapply--that's something that you need to correct. SS: Right Jp And you really do need to correct that and... SS: Absolutely, and I know for a fact that that has been addressed when it's been brought to our attn and we're able to manually make that change into a customer's account, if a senior calls and obviously doesn't know how the system, I mean I, like Dell said, it's a difficult system to understand, but that's the way it's set up, so when you call, you know, raise the issue, when we know individually what's going on, we can make that change to carry over the senior discount. Jt Can you guarantee that this will be taken care of though? ! mean can you assure .... SS: Yeah, !'il stay here as late as anybody wants me to stay to get their names, their address, the history of their specific problem and get it addressed. Jt That's very important, okay. Md Excuse me, thru the chai~ I'm Mike Doylc I iive at 160 N. A Street, I'm Mike Doyle, I'm 92 years old, I moved from 160 N. A Street and I moved to 162 N. A Street. AT&T/Media One, now I'm a brand new customer. Excuse me, let me finish please. Cause I'm wired on this one buddy. So you're telling me right now that if I'm Mike Doyle and I move and now I'm a brand new account, I'm still Mike Doyle, I'm still 92 years old, and you, Media One or nobody else can go, "oh, excuse me Mr. Mike Doyle, you're 92 yrs. Old, you're a new account, and we're not going to tell you that l can still get the senior discount?" I've got something to tell you right now: that's the worst thing I've ever heard in my entire life. SS: ' I thought I clarified that--that if it's brought to our attention that we Will fix it. I thought I said that, but obviously .... The other thing I wanted to make clear is that everybody is associating this change with AT&T and in essence, this change in service and the introduction of converter boxes was planned long before AT&T bought Media One. I mean this was one of the reasons why AT&T bought Media One, because of this type of technology, because of the quality of the network that we have throughout Southern California, so I don't wanna get, and I know it's a logical assumption to Minutes- City Council October 16, 2000- Page :[5 make by people that, gee, AT&T came on board and now all of a sudden we're getting these changes, you know, as I've said on several occasions in this chamber, we tried to rebuild the city two years ago and have a lot of these issues addressed way before AT&T was even in the picture of buying Media One, so I just would like to cladfy that--that these changes are not a result of AT&T buying Media One, these were planned well in advance. Md Thru the chair if l might? This soundS like A! Gore and George Bush, for God's sake. I asked you a question, and the question was as follows: I'm Mike Doyle, I'm 92 years old, I moved from point A to point B. I'm still 92 years old. I've been with your company for 5 years here, now I'm a brand new customer here. AT&T--whoever cares what cable company it is, I'm getting a senior discount here. I move over here and you, the cable provider, will not tell me, Mike Doyle who is 92 years old, that moved from point A to point B, that i'm eligible for a senior discount. Is that not correct, is that not what you just told me? I'm a brand new account, is that not correct? Did you or did you not say that, please? SS: I said that that's the way it's.treated in the system .... Md Thank you very much! You know what? That sucks! SS: Well, if Mike Doyle would call me or Dell and we can identify the uniqueness of your situation, I said we would get it fixed. Md That's dght! But why is it necessary for me to call? Jp But Mike's senile, he won't remember to call. MD Why is it necessary for me to call you when I'm 92 yrs old and you know that I'm a senior citizen? Jt Ok, alright, let's calm down. DH? I had the pleasure of attending a Board of Director's meeting at one of your mobile home parks in town, and it was interesting to find out how many customers were concerned that they're going to lose HBO, Showtime, the movie channel and Cinemax. And there's been a couple of comments this evening about that issue. The old technology was not perfect, our management of it was not perfect. We have probably thousands of customers that have been receiving premium channels at our fault--at our fault. And the new technology will take those premium channels away from them, there's nothing I can do about that. But let's live With a couple of years of free HBO and let's move forWard. Alright? It's the HBO (static) channel. Every HBO customer that we have, we pay HBO tons of money. Jt i'm going to keep on losing councilmembers, the more you irritate--I'm gonna be up here by myself after a while. DH Well, the thing you're gonna find about me, Jeffrey, i'm not going to tell you any lies, I'm going t° be straightforward, I'm going to give you the real details. I have to have that integrity--I'm not going to make up stories to make you happy. I apologize for that, but that's'how I'm going to do business. Jt Okay Minutes- City Council October :~6, 2000- Pase 1_6 TS Through the chair?. ! mean ! empathize with your position and frankly, you guys ~were on the front line and Steve I mean no disrespect when I say this about the old Media organization, but you know, we have a history here. right now of a whole lot of problems and when I heard AT&T was coming in, and I know Media has a lot of nice people, I think that Media disregarded this area for a long time and so my comments are in the way of suggestions. That obviously we all know that AT&T is the type of company that if they desire to do so, could do an awful lot of things to make this situation dght. I would suggest that as we do with anything that's priced, that just because a senior moves to a higher level, doesn't necessarily mean that they have more money to spend--it means that they have a right to utilize more movie channels--they see more movies than I do. I'!! see lots of movies when I'm a senior, more senior than I'm getting to be. But I would suggest that perhaps the mere fact that a senior wants to get some more movie channels because they don't want to watch the 1984 basketball game between No,Carolina and Georgia, that they should be accorded a discount on that because frankly, they need it more, so I don't think they should be depdved of the same opportunities that we have when we're not seniors yet, to watch those extra channels, so I'd suggest that might be a good idea. And we can't tell you how to price things to a large extent, but as history dictates, AT&T came in, but I presume as with most things that we may have an AT&T,. yet with still the Media One establishment kind of operating a lot of things, and once again,. Steve, I mean no disrespect in that, but AT&T, but we need a new mentality on doing things to establish better customer relations and of all times, to not bend over backwards to assure smooth transition in the box issue, this is a critical time because the 5 of us and the other candidates in here who will be looking at this franchise agreement, Jim and I won't, down the road, they're really looking at what happens in these next few months, not what's going to happen in a year from now, and it's a very critical period that I would suggest that you guys really pay attention to it, and I don't know how to do that, it's something that you're going to need to do, but, this problem isn't going to go away and it's been here a long time. And I know that what you say is absolutely true, that the cable box technology has a lot of positive things and I even remember back when Cox Cable was there and 'my Penn State game went out, before they had better boxes, etc., and ! was livid, and I called them' and they didn't charge me for the game and gave me another free game the following week and they bent over backwards even during their times of transitional technology and not that I'm here promoting Cox or anything, but i'm just saying that throughout that period of time, they were very, very. customer-oriented and we just haven't seen that, and it's been months and months and months that we've all been deluged with calls and people coming to public comment and criticizing, because it's a lifestyle, I mean we spend a lot of time at home and we have a lot of seniors in this city and they really need, they need above and beyond, and Dell l appreciate that you don't lie to us up here, cause we have lots of people that lie to us, but separate and apart from that, it's good that people gain a better understanding and'those here will have a better understanding with respect to that, and I of course have picture in picture in my TV and I can't use it anymore, and my wife can't use it at all because she can't use any of the 10 clickers we have in the house, which, has caused a lot of madtal discord after I bought my new TV. Tw: Are you done, Tom, I'm sorry. You know, Dell and Steve, from our perspective i've been on Council 6 yrs and in 6 yrs I've heard nothing but complaints about Media One--it would go out all .the time,, weird programming, Cox, everybody in Tustin Ranch had Cox and we don't seem to get a lot of complaints there and yet the rest of Tustin, so this is 6 yrs of complaints--you know this, and we kept headng it was coming and then these changes which we' heard about tonight, higher prices, considerably higher, I mean one gentlemen is talking about 50%-that's 'a huge increase, 30% if you've got several TVs it's a big percentage increase, boxes they don't want, extra remotes that, I'm like a lot of Women, I hate all the remotes, I can never figure out which one goes to which, it's a ..nuisance, it's a hassle, I want things easier, not more complicated, and service that's abominable. I mean, what are we suppose to do up here, we're headng the complaints and first there's Media One, now it's this atrocious transition that's costly, that doesn't appear that the costs are going to Minutes - City Council October 1_6, 2000 - PaEe 1_7 come down, and what is this Council supposed to think about it? You've put us in a tough position · because our citizens are mad, and they're saying it's a monopoly and you gotta do something about it. Jp Yes, I'd like to offer a suggestion to bring this to a closure and .let the Tustin High kids go home, maybe it'll be on their cable and they can watch it if they have to, but school tomorrow. Channel 3. Here's my suggestion: why I wanted you to come up after one person spoke and answer that so we get what happened--we still have the "my cable went up 33%", "1 can't record with my vcr", numerous questions that, you know, I've got mine set up that I can record, but my picture in picture is blank. Now, I luckily have a teenager that loves to do this stuff and can work that fore me and all the remotes, and no one has as many as I do, there's just no way. But here's how we could bring it to a conclusion. Since you've taped this, hopefully, you do have a copy of this, i'd like you to address a report back to the Council or to Joe Meyers that will get it. to the Council, point by point, what everybody said, answering those questions: Then when it comes back to the Council, in the meantime I'd like the staff to compare Cox rates and what their system is, because I want to compare the .two, an~i I want to' see what your answers are, what Cox has, then when it bdngs back, and we see all this stuff and as it moves forward the Council can make the decision, do :we want to renew or not renew based upon the competitiveness, the answers that you give, and I do think that you're going to be able to come thru with the technology to improve a lot of things, but just as the seniors, that's a policy' that wouldn't get past us in the future, a senior remains a senior whether they more or not--you guys gotta work that out. That was brought to my attention--it's very good, the cable going both ways, seems like that information can be sold, people don't know--! don't know to say, "no I don't want my information sold", but things like that need to be addressed and we need to know dght up front what we're getting. Let's compare the two and let's make a decision from there. DH: Absolutely, in fact, we'll stay afterwards--we'll go outside so we don't disrupt you and I hope that these customers will come to us one on one so we can get their names and phone numbers and let's deal with them person to person instead of company to customer. Let me go that route if that's okay with you. Jt That's a nice offer and I have a question, though, since you are honest and I'!1 ask just my one question: is there a movement by AT&T to sell the system to somebody else and try and get it over to Cox, as I keep on hearing the rumors going around swirling... DH: Well, local govemments do those transfers of franchises, that's Steve's and .my job and we have been given no heads up on that whatsoever. Jp I think--citizens have asked us about, if the box .... Md I have one question, and this is not for Mike Doyle, this is for my wife. ! have not received a door hanger, ! have not received a phone call. And as of Wed., if I'm not getting HBO I'm coming to your office and i'm going to see you personally, and one of you two gentlemen is going to bring the boxes to my house and hook them up, ! guarantee it .... DH or SS: I"11 guarantee it too. I'll do that. Md Cause I will NOT put up' with that kind of information--I've got enough problems dealing with my senior citizens, let alone my wife---i'm telling you dght now--it's just going to get real testy if l don't' have HBO on Wednesday and I don't want to be there. Minutes- City Council October :~6, 2000- Pase ].8 DH There are over almost a hundred nodes I believe, a little less than that, in Tustin, and we're only into about the 5"~ or 6"~ node, so Michael, you could be a ways. away yet, you could be somewhere between now and December 15th. Jt Dell, I will say I'm going to throw you to the wolves, what i'm going to do is take a 5 minute break and allow those people that would like to speak with, Mr. Heintz and Sawyer, go outside and begin the verbal flogging, ! guess. Let's take a 5 min. break. DH Thank you for your suggestions. BREAK: 8:16 p.m. RECONVENED AT 8:25 p.m. JT Okay, we're gonna just restart up again, that AT&T Broadband Service item was a receive and file, so I'!! ask that we receive.and file it after all that. It was moved by Potts, seconded by Wodey, to receive and file subject report with Council recommendations that they come back. Motion carried 5-0. 13. ORDINANCE NO. 1231, AMENDMENT TO THE SEXUALLY ORIENTED BUSINESSES CODE It was moved by Saltarelli, seconded by Wodey, to have second reading by title only of Ordinance No. 1231. Motion carded 5-0. The City Clerk, Pamela Stoker, read the following Ordinance No. 1231 by title only: ORDINANCE NO. 1231 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING SECTION 3917, SUBSECTION (A) OF SECTION 3918 AND SUBSECTIONS (A) AND (B) OF SECTION 3924 OF THE TUSTIN CITY. CODE, RELATING TO THE INVESTIGATION, ISSUANCE, AND APPEAL OF PERMITS FOR THE ESTABLISHMENT OF SEXUALLY ORIENTED BUSINESSES It was moved by Saltarrelli, seconded by Potts, to adopt Ordinance No. 1231. MotiOn carded 5-0 (roll call vote). 14. PRESENTATION BY TUSTIN OLD TOWN ASSOCIATION REGARDING PROPOSED APPLICATION TO CALIFORNIA MAIN STREET ASSOCIATION The Tustin Old Town Association proposes to submit an application to the California Trade and Commerce Agency to become a California Main Street community and has requested an opportunity to outline the program to the City Council. John Powers, President of the Tustin Old Town Association, and Sharon Jones, gave a powerpoint presentation ................ JP: We're here to talk a little bit about Tustin Old Town Minutes - City Council October ].6, 2000 - Pas:e ].9 TO' HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM' CITY ATTORNEY SUBJECT: STATUS REPORT ON AT&T'S CABLE TELEVISION FRANCHISE SUMMARY: AT&T has requested renewal of its cable television recommending expedited consideration by the City Council. franchise, and staff is RECOMMENDATION: Direct staff to expedite City Council consideration of AT&T's request to renew its franchis.e.. FISCAL IMPACT: Within budget. BACKGROUND:. In May, the City Council held a public hearing on AT&T's service under its franchise. This franchise expires July 6, 2002. At that time, numerous complaints were Voiced by residents about/:ustomer service and outages. An AT&T representative stated that AT&T would provide a wdtten reSponse to'the customer issues raised. The City has never received this promised response. After the hearing, City staff solicited a proposal from AT&T for franchise renewal; staff specifically requested that AT&T address the very issues that were raised at the May meeting. AT&T's proposal has been received and reviewed. City staff is sending AT&T a letter outlining the deficiencies in the propoSal, including a lack of responsiveness to issues raised. The criteria that the City must examine in considering renewal include: 1. AT&T'S compliance with the matedal terms of its existing franchise. 2. AT&T's quality of service, response to consumer complaints and billing practices. . AT&T's ability to meet future cable-related community needs and interests. At the last City Council meeting, AT&T had notice of the City Council's concern about AT&T's responses to consumer complaints and AT&T billing practices. While the City has no authority under state and federal law to control AT&T's rates and its service, offerings, .the City Council may consider in franchise renewal proceedings if AT&T is meeting community needs. AT&T representatives again promised to meet with customers and address issues raised. Unfortunately, the number of resident complaints has increased since the last Council meeting. Residents have told Councilmembers and.staff that AT&T is rude and abrupt and that Tustin customers have been accused of "stealing signals for years." in staff's view, AT&T has had adequate opportL~nity to respond to the issues raised by residents and the City Council, and it is appropriate now to present the issue of renewal to the Council. If directed by the City Council, staff will bring this issue to the City Council meeting of November 20, 2000. If the City Council determines not to renew the franchise a Subsequent hearing is required by law to give the franchisee an opportunity to formally respond to the reasons stated for nonrenewai. ATTACHMENTS' None 16. It was' moved by Doyle, seconded by Wodey, to Motion carded 4-0, Ports absent. STATUS REPORT ON AT&T'S CABLE TELEVISION FRANCHISE AT&T has requested renewal of its cable television franchise, and staff is recommending expedited consideration by the City Council. . Jt Speaking of heat, let's talk about the status report on AT&T's cable franchise. Md Nobody has a rope, dght? Jt There's a lot of you who want to speak and we want to hear fro you, but if we let everybody speak we'll be here til 3:00 in the morning, now how many people want to stay til that late? Here's what I'd like to do. Are there groups or condo assns that a spokesperson can speak.for your group? What we want to avoid is beating on an issue over and over and saying the same thing repeatedly because many of you will have the same questions. I was thinking that perhaps in an hour if we gave everybody 3 minutes, that will give us a lot of people to talk. Some of you will be a lot bdefer than 3 mins., so we can get more people in. At the end of the hour let's see how many people we go thru. I want to keep you to 3 mins., so others are allowed to speak. Many of you out there ! will pull something out here, AT&T complaint letters. My book. This is the book I've been keeping and we've' got letters here we're going to give him tonight. I've also gotten a lot of phone calls and spoken to a lot of you--we all have. in fact. a lot of staff, Joe Meyer has and so we're glad you're here and want to hear your concerns. I'd like to give AT&T the opportunity to present if they want to. ! would assume at this point what we're going to do, since there's no presentation, is there anything AT&T wants to address the city first on? Or would they like to wait until after everybody comes up to say how they feel? They want to listen first? Okay. That's fine. Here's what. I'm going to ask you to do. in an ordedy manner, if you could get up and go to the sides of the walls,side by side, we'll take you one by one, left and dght, allow you to go state your name and address and keep, and I'm going to let this gentleman speak first since he was the one we had to move. John'Castro, 14801 Newport Ave., #A, Tustin: I work for OrientatiOn Legal Center in the City of Tustin but have lived in Tustin for the last 20 yrs. And I am not only a resident of Tustin but also represent a lot of the Hispanic community and pepole who can't be here because they don't speak English, An.d those people have hired my serves as well, by coincidence, to bring some issues to the City Council. '1 was watching TV the other night.and saw Mr. Doyle giving his thoughts and how he thinks about AT&T and Media One, and I was very happy--I know you were upset but let me tell you this--there's a bunch of people out there, residents that are very very upset about how Media One now called AT&T Broadband, who I just called about half an hour ago'before I came here. Their complaints are as follows and I'm going to make it very simple so everybody can understand-this about the rates increase, the customer service, the cable boxes, the system, about bilingual services, and the schedule that they have. They claimed that they always improve things, that they give better viewerS, better movies, etc. I haven't seen any changes at all, I mean it's still the same HBO with the same programming, still the same matts, still the same & core?, still the same rates and probably higher every time they come here, and the same old boxes. Probably this is the first time they ever going to change their boxes--we havent's seen thoSe boxes yet. At least I haven't seen mine in my housc they came to my house about a week ago supposed to install the service, reinstall the service because we Minutes - City Council November 6, 2000 - Page 9 canceled the old because it was too high. I mean some people can't afford this. Cable company is becoming like putting electricity, the gas, it's becoming a utility in the home, it's becoming a necessity. Why? Because with the simple antenna, you can't watch anything. Now we have a lot of older people and My mom is one of them and we have a lot of'people that work dudng the daytime and they come at night and they wanted to watch tv and most of the time the programming is off--there's a lot of snow in there. You call the cable co and they say well we gonna schedule you for an apptmt. You expect a phone call the next, and you don't get that phone call but oh, yes, you get a letter saying we are going to increase the cable services. What about customer service? if they make so much money, how come they can't provide one person; you know with a computer they're trying to fix the problem in 24 hrs like the Southem Calif Edison or even Pacific Bell and any other co. I mean they can't establish that, they only have an answering service. Excuse me, I mean, they are a very big company with a lot of money in their pocket and they can't even provide a '24 hr. service with live people on line? Oh yes, use the system. If you want to speak to this, dial 1, if you want this, press 2, and then press 4, and then press 5 and you just keep going, I mean, excuse me, how long am I gonna be on the phone? And by the time you get on the office is closed--I'm'sorry. And bilingual services--my people ask me how .come they don't, have any Hispanic available, either daytime or nighttime. I mean most of the people'.out there-- there's a large Hispanic community in this town and altho I do speak English and Spanish, some of my people don't speak English--my mother has been here for 25 yrs and she doesn't speak English so she can't communicate with the cable company. Why? Because most of the people speak English only and they don't have anybody that is bilingual. And when they do, they are very rough and they don't care. Scheduling--we are paying this much money for a service, even with the premium. Now we have what? 77 channels? What do you watch? Most of the time just naked movies out there. Yeah, oh yeah--Playboy--pay $6.95 every time, you know that is advertised most of the time. Is that what I want my kids to Watch? They have to talk to or speak or give us some addresses to address the networks because they don't have good programming--their programming, excuse me, but it's not · good at ail. Thank you. Erin Nielson, (no speaker slip) 14462 Oxford, Tustin. The man before me stated some of the things, the problems that we have. I know that several years ago I approached Ms. Wodey because I was really upset that Media One and now AT&T gives me the L.A. Unified SchoOl Board meetings, which ! am so deeply motivated to watch, while I have a diffiCult time watching my own City Council meetings. One of the things I'm concerned about is that if we do go to a satellite provider and something came in my. mail talking about that, then I'm not going to be able to watch my council meetingsn at all either. So what I'm here to ask you to do is to talk to AT&T that perhaps maybe we can't change the contract so we can have the city covered under one provider, which is what we all' want, but what they need to do is provide us the same channels that they're providing at the same cost that Cox is providing, i called to find out if we could have the Leaming channel, the History channel, Home & Garden tv, again several yrs ago, and I was told that we were geographically not a priority for those channels. And that's I think what needs to be changed--my naSors are college grads, I have dentists, attys, CFO's, I think we could understand the Learning channel. I think that no matter what language is spoken around this city I think the needs can be met and be met as well as Cox seems to do. And so that's what I'm here to ask. you. I don't think to bring a satellite provider in here is going to be the case. I think we need to have a little .more pressure on AT&T and meet with them and go over channel by channel what the citizens would like to see on their TV. So thank you. Jesse Dawson, 440 E. 1st, Tustin. I own the Tustin Inn, well I'm managing partner in that. My Minutes - City Council November 6, 2000 - Page 10 contention is, I'm speaking for the bar owners in 'Tustin that have sets--anyplace between 5 and 6 sets. Now each one of these sets, because they're commercial outlets, have got to have units' in them. In order to receive the sports channels and everything else that's necessary to operate our businesses. When AT&T came to town, Media One was already in the process of. changing over the system. It was a smooth transition for AT&T to step in, buying the company. Very smooth operation. What they left is they left my customers, which live in the proximity of Tustin, that have Media One or AT&T, with an option, ither go direct, go antenna, or go with AT&T. Now .on February 1st the commercial rates for my establishment are going up. I've got the bill right here in my folder. The increase I don't know. Media One was not a good company, but the altemative is far worse. The little people that are my customers are going to end up paying the cost because i'm going to have to increase to pay the monthly bills to the tune of someplace around $40 to $60 a month. Now if this is progress, alii can say is give us back the covered wagons but when the big guns come to town, to a little town like Tustin and they want to romp on the little people and stick it down their throat, it seems like to me that we're getting raped and thrown in the snow. So ! waive the rest of my time. Thank you very much. .. MD jeSse, could you come back up and explain how well your wonderful remote controls work? Jesse Dawson: I've got 5 boxes. It took them a week to put them in. On Thurs of that week when either a playoff game or the World Sedes was going on, I got it on the basic TV which was on channel (end of tape) .......... On Thursday of that week there was a game on ESPN and Fox Sports West which I paid for. Didn't get those games--I lost customers to Pineapple Hill. On that Sunday, because of the descrambling devices--they put little monitors on the lines, you know, that do not have traps, and they monitor it from Central, so they can monitor exactly what you're receiving, what day, what time. You shut the power down, it's gotta go power back kup. Alright? So what happens, is signals get scrambled, especially when I pay flor a pkg for $400 some odd for a season, to receive off a satellite, which got scrambled. But on that Thurs. night Fox Sports West l did not receive, so customers went to Pineapple Hill where they have satellite capabilities. GodfatherS,. the Swinging Door, were in the same situation, so customers went else where and we lost a lot of money. We lost it on Sunday with the NFL package,and the following last Thursday, all of a sudden, everything seems per[ect with the remote controls--you hit one channel, this channel goes off. I have mirrors, you see, signals bounce around---only need one remote, but the one remote works all five of the boxes, which are on all five of the sets, you know, and it's allmthey're all cable readyml don't need the boxes other than for them to monitor what I'm receiving, right? And so last Wed. ! come in to check on the place and everybody says what's wrong? Fix the TVs Jesse--I look at the TV and say, 'the game's on" but everybody is like moving in slow motion, you know, it was all digitalized, so they went over to Pineapple Hill again and. ! lose business. I mean it's a full blown mess. ~ Sam Edenz, I've lived in this area for a long time and i came to complain about a little bit different problem than what I've heard so far. Prior to October 6 we 'had a contract with Media One to provide a certain level of service. On or about Oct. 6, something happened tha tour service was changed significantly. We got a lot less after Oct 6 than we had before and 1 called AT&T and asked them, "what do you expect me to pay each month after Oct. 6?". Their response was that I could continue to pay the same amt I've been paying in the past and i could pay an add'l amt for each box and' an add'i amt for each little hand held control, or I could give up service altogether. Now that doesn't seem to me to be fulfilling the contract that we had with Media One pdor to Oct 6, does it? So it seems to me that there might even Minutes - City Council November 6, 2000 - Page 11 be some kind of legal grounds because my contract started at this level, my service has been significantly reduced, and I'm expected to pay the same amount. Well I personally am not going to do that. Tell you why. Because in our house, I'm 70 yrs. Old, my wife is 69 yrs old, we have an invalid daughter that's 40 yrs old who can't get from one room-to another except in a wheel chair and some rooms she can't get to. There's 7 rooms that have tv's in them, so she can go from one room to the other when she gets tired watching the walls in one room and go to another one. But she's never out of. the house so she's stuck in that environment. She's got vcr's that she like to play with--she likes to record things and watch them later. She can't do that anymore. And yet we're supposed to pay as much as we were paying previously for the service. We had 55 channeisl plus 3 movie channels, plus 2 pay per view channels and we were paying $38.06 a month. And we're expected to pay $38.06 a month for a lot less service after Oct. 6. And then we have to add in the little remotes and all of the little boxes. And some of the rooms, the TV is actually built into the wall so how do you get a box in there? So I've got to do some.reconstruction of the house to put the boxes in. So it's just an unbelievable situation and I recognize that maYbe technology has taken us to this point and everybody's doing the same thing, but it's just an absolutely redicuious situation and even one other step that's more rediculous than that: I heard on one of the channelS-- something about a Council meeting that was voting as to. whether or not they should continue with AT&T or get somebody else. Well l don't know whether anybody else would be as good or as bad or whatever, but if you pickup the ballot--today's a very importantday as far as ending a period of a lot of promises, and see what's going to happen tomorrow--who's going to try to fulfill those promises. Well I looked on my ballot and I don't see any of your names on my ballot. In fact, I DON'T LiVE IN TUSTIN, so what am I doing here? Because you guys are making decisions on my behalf. You've made some kind of a contract with AT&T that I can't get anything but AT&T and i can't even vote you out of office. It seems to me that there's a certain amt of responsibility that falls on the Coiuncil as well as on AT&T to resolve the situation to everybody's benefits. JT Good opportunity to clear up a real misnom'er here, please. L J: AT&T/Media One does offer some other areas of the County and the gentleman probably lives in the unincorporated area or perhaps in another city, but our franchise just covers the city of.Tustin, but it's our understanding that these problems are endemic throughout the AT&T/Media One territory, so I'm not surprised that he's experiencing the same thing, and you are considering taking some steps to address these issues, including the question of whether or not AT&T's franchise should be renewed. And so ! recommend to the gentleman that if he does live within the county or whatever county he lives within, that he contact those elected officials about these problems, but certainly the problems he's mentioning are shared by City of Tustin residents. Jt Let me go one step furhter from that cause I think you raised some good points. A lot of the calls i got Were from folks up in North Tustin, santa ana area, and the majodty of my phone calls today were from Santa Ana residents. Now I could as a councilman say, hey, I have no authority to do anyt. hng for you. What we have done, though, is I've 'calledl Supervisor Todd Spitzer's office. Y°u can speak with a fell°w there named Paul Hemandez and I have railed on them to try and do something, because we've got to his them from a number of fronts. I said you need ot be aware that we're fielding a lot of complaints of your constituents here, and I am totally powerless to help them. except that I'm .going to invite them down to the meeting and let them air their complaintS and have the follks from AT&T here so at least they can here, because bY the time anybody else will get back to you, to me the most direct for of govt is just like what you're doing--you're coming here, the guys are here, and Minutes - City Council November 6, 2000 - Page 12 we are gonna pound on. them enough to make sure that they do for you what they should be doing. And we're going to do that for all of you, even though you don't live here. And I think that's what we should be expected to do. And for the residents that live in the city, we have a unique dght. This isgoing on in Costa Mesa,' and throughout the County. We are not alone and i'm going to let them respo, nd to that, to the issues. I think, yes sir?. Unidentified Person: is the area of responsibility in other words there was some kind of monopoly set up by various political organizations that gave AT&T or Media One which included North Tustin? LJ No, that's not corect. First of all, AT&T/Media One does not have a monopoly. Cox cable could operate within this area as well; and', well, they have a proposal before the City Council to expand their franchise and Media One/AT&T has a non-exclusive franchise, in other words,they don't have a franchise that forbids anyone else from coming in. So currently they have a non-exclusive franchise--anybody can apply.to go into that area and the City would be required to allow them to go into that area, so if any other cable .operator wants to install facilities in that area, all they have to do is apply to the city for a franchise. So what happened is that the County is also--they have their own franchise agreement and I don't know what the County's franchise says, but in Tustin it's a non-exclusive franchise. TW: And the point being we just havent had another cable company come in and compete with AT&T or we wouldn't be having these problems--everyone would be switching. But we haven't, so I think that's interesting to note---I would just like to ask the crowd because .we're talking about it--can I see a show of hands of how many people do not live in the City that actually live in Santa Aha or North Tustin area? Yeah, so it's about half the people, so just so you realize, Todd Spitzer is your representative on this issue, however, as the Mayor said, we are more than happy to at least hear what your complaints are. JT 834-3550---I know his number by heart--I've been calling it a lot. And to that extent, too, i know that during the last Public Input there will be a satellite provider who wants to talk and we've allowed him some time--5 mins. before the Council, to show you other options available, We don't support that--but we're opening it up and saying there's other options out there---you'don't have to choose those options, but if you're like me, I don't like to be tied to one thing. I like to know that I have other options and if l don't like what I have I might be able to go somewhere else if l can do it, and so... Unidentied person from audience: why is reception, if this is the case, because when ! talked to Cox, they said that they had gotten togther with cities or other companies or whatever, and parceled out these areas and they wouldn't compete with each other, so this is an AT&T or Media One area and they weren't supposed to be in the area? LJ The only answer I could say and I really do think we can't have this back and forth because there's other people waiting to speak--is that that's probably a "gentleman's agreement" as they call it, worked out amongst competitors--that's their deal, their private deal and it's not'anything that the City has required and frankly, i think it's bad for customers and bad for business. B Huston: I think Mayor, the other practical problem is you' do not find cable' companies running dual systems, in other words, you're not going to see AT&T & Cox and a third company going into the same area, put down parallel conduit, tear up the streets 2 & 3 times because they have to know they have some market to draw upon, so we're, they can, but in Minutes - City Council November 6, 2000 - Page ].3 reality they don't. JT By the way, that was a very good point. I think it needed to get out. Thank'you. Bill Fink: I don't live in the City of Tustin and ! may be that satellite provider you were talking about. ! wOrk for a company in Anaheim called Satellite Systems. We've come a long way since we were growing up watching black and white 13" TVs--the TV is very important to us today. And I'm not here to dump on AT&T either because our cable companies do provide an important service. However, TV has come a long way, and satellite technology is not pie in the sky technology anymore. You have a choice. While you may not have a choice with your cable companies, you have a lot of choice in satellite providers. We provide a crystal clear picture, we probably provide more programming for the money than any satellite company or any cable company in the country at a better rate. Satellite TV is not for everyone. Somebody that's gotta Watch OC News or Channel 9 or channel 13 which we don't provide at this time, may elect to stay with their satellite companies. But you can go 'with Satellite TV..The reason why satellite-TV is more competitive is because we compete for'your business. 'My company is a dealer for Dish Network. As you've, probably seen across the street there are a lot of Dish Network tents. Those are the dish network people from the corporationmfrom corporate. And even though I'm a dealer, we compete with them for your business: We try to do a better job than they do and the reason why rates stay lower is because there's always been competition in the satellite business. If you don't like dish, you go to direct, if you don't like direct, you can go somewhere else. And believe me, the dealers for these companies and the corporation, they want your business and they're competing for it very very hard, so like I say, it's not for everyone, if your house is shrouded by trees and we can't get a signal, satellite TV is out. Cable is there. But you have a choice, you do have a choice. I used to have Cox Cable and this is before I got into the satellite business, and ! live in Silverado, and I was not getting a very good picture--I had a lot of snow in my picture and complained and complained, and they came out to fix it and they boosted my signal, and I got better snow! And I was amazed--so I went to satellite. And I became very very involved in the business. I'm not here to take up a lot of time. If you have any questions or l can provide any info I'd be glad to. ! know there's folks here from Dish Network Corporation--they've got their iogos on--and you can ask them, but believe me, that's the difference in the business. I'm not going to say the cable companies are a monopolymthey tend to be, I know they're a source of revenue for a city in their franchise fees, we know that. You don't pay taxes or franchise fees when you have satellite television. And that's basically--if you have questions I'd be glad to address them. Brett Christensen, Epping Way, Tustin: I've been selected by many neighbors on my street to speak on their behalf because forever it's been a nightmare. The first thing I have to talk about is quality more than the cost. I know there seems to be a lot of opeople bothered by the new rates but I wouldn't.mind paying for it if I actually got some kind of service for it. It seems forever, for the last six months my picture's been constantly interrupted day and night for them to do upgrades and then as soon as it's supposedly upgraded, it doesn't even work--they come in and tell us we need to pay an extra $5.00 a box and that you need to rewire your house with new cabling to make the other outlets work. That's my biggest concem is why I'm having to incur all these costs out of my pocket to make their new system work, to get the quality of picture I'm looking for. It's. important or I wouldn't be missing Monday Night Football. I work hard all day and I come home and all I want to do is watach some TV here and there. As far as the dish network--I've looked into it but it doesn't offer a lot of channels, the cost is not comparable, actually, to cable, once you start getting all the channels that acable does offer, and ! applaud AT&T in actually adding more channels than Minutes - City Council November 6, 2000 - Page · Media One did, and I believe most of this seems to be lying on when Media One cause it really didn't change from when Media One owned it to when AT&T has owned it. Because there's been no dropoff in service-it's just having to pay more for the box, and I'd just like to know why AT&T has made it so we have to change the cabeling in our house now to acquire their new boxes, and I'd like to know what they're going to do about customer service and I'm not the only one--many people have a problem and the way they're represented is "deal with us". You cannot call the place without being put on hold for half an hour. It's just a fact, and when you do, they tell you there's nothing we can do. I would like the City to invite competitive bids from other companies, at least, like Cox, Time Wamer, I don't know if Time Warner--cause Time Warner is not service around here in this city per se, but invite competitive bids to see who would like to provide the service to the City. John Dillon, Vandenberg Ln., Tustin: i vented last week so I'm not going to vent tonight. I've also sent a couple of letter to CoUncil. I've resolved my problem with AT&T--! installed a satellite dish last Tuesday. And not only did I get it for a great buy: $49.00, I got an extra $10 oft for changing my long-distance provider away from AT&T. My rates, if I'd stayed with AT&T, would have gone from $38.06 to' $54.58, and that's BS.. My rates 'with the .new provider are down to $37.98, which is admittedly only 8 cents cheaper but it is cheaper. And the final insult is, when I called in on the first of November when I had my satellite dish installed, I called AT&T to disconnect my existing cable service, and after 20 minute sof automated ansewring svc devices and 20 minutes on hold, I told the young lady that I needed to disconnect because I was a dissastisfied Tustin customer. She said'l had to go to a specific voicemail and leave a message there, and I was disconnected. So for AT&T representatives here, please be advised that as of November l Stl don't need your service. Thank you. JT It's a tough act to follow. JT Jt Jerry Graft, 18151 Beneta Wy, Tustin: I don't have too many complaints but ! have less channels than I had before cause they finally caught .up to me unbeknownst to me. So i'm not getting the service that I originally had. One point I wanted to get at is I've never had an adequate definition of why they put in this box. I don't need it--I'm cable ready, so what's the box for?. I also lost some capability in my TV--I don't know if it's due to the box or not, but the other thing I'm concemed about is, I've never been notified on this tax rebate that we got. Now they got us working off of that--I object to that--why should they be eaming money on my money? I think they should notify the people, and tell them, hey, if you want your cash, send us this form back, not try to call them because it's impossible to get thru. When the reps from'AT&T come up, would you please go thru cable-readiness and the #1 question i get from residents is, ill buy a cable-ready TV should I be able to take the cable and just put it into the TV? Second question: do I need the box? That's an easy one. Can you get service somehow without the box and how much is that gonna cost? So I think we'll answer that question for you. Would you guys make a note of that to explain the property tax rebate. May l aSk you a question? You were paying a set pdce and I'm sure maybe all of you had different priCes. I take it with what you had, and now what you have, is considerably less for the same price? They moved a lot of the channels up to another package, right? Graft: That's right. I really got hung out to dry and that really burns me up, so .I'm seriously thinking of going to the dish. Thank you for your comments. Are you folks in line there? 'Oh., this is overflow. Anyone Minutes - City Council November 6, 2000 - Pas;e :[5 who wants to speak, please line up against, the walls and we'll bdng you down and give you opportunity. Mam, please? Susan Cutoura: I've been a resident of Tustin for 26 yrs. And I'm here to talk about the same old thing. It seems like these boxes are the same ones we had when they' first came out in the early 80's'with select-tv. Then I got cable-ready T V and didn't need the boxes anymore. I work during the day, tape my soap operas, and sometimes i tape different channels and now I can't do it when this box comes out. I recd this letter last wk dated 10/30 that I'm going to be required to get this box. I have had svc go out a lot last yr and started keeping track on my calendar one month. The svc went out on July 10, 11, 12, 28, 29, Sept. 8, 28, 29, and one day it was out all day long. So I called their number and kept pushing another button and finally spoke to somebody and they said they'd send somebody out to your house tomorrow. I said there was nothing wrong at my house, it's your system because the cable keeps going out and my neighbors are having the same problem, so if you send anybody out, send them to the whole street. They said what do you want us to do and i said I'd like you to deduct that days' cable cost from my bill and she argued with me, what days was it? "well how do we know those were the :dates?"--Because I tape, and on my tape I have snow, so they would refund me $1.50 for tha tday, and I got to the point where I was getting tired of calling every day for $1.50 and my time was worth a lot more than sitting on the phone for a half hour and sometimes would get nowhere cause the iine'would go dead. Then about 4'5 mos. Ago they put these covers on our street that look like elephant droppings. Now the value of our property has gone down 'because of these stupid looking boxes out on the parkway. JT They're fake rocks. SC: I know they're fake rocks but it seems like AT&T is out to make money cause they want to provide us more movies, more concerts, and we're already giving that as it is dght now, and I'm pretty sure, when I looked in the phone book there was 9 video stores in Tustin and I'm sure they're just thrilled that we will not be making any more tdps to their stores to rent moveis cause we're going to have all these movies at home. Ralph Smith, 1532 Melvin Way, Tustin: I am familiar with organizational structure, been in it all .my life, and it's not us, it's AT&T's problem. At this point ? To 4 different companies. Now their root problem is this: you cannot communicate with anyone and get anything done. I too have been on the phone for 15-20 minutes many times. The big problem is when they come out and installed my boxes, I have a PIPml no longer have that feature, they took it away from me. I called & tried to get my vcr operating and I cannot'get a call, I've been trying 3 days now to get thru to them. The big problem is service. I don't care who or what company has it. Until you can get thru and talk to a person, we're absolutely wasting our time, and many times I've called and said let me speak, to your manager and said, what is his name, and "we have many managers". Would you have one of them call me please? Not yet have I heard from management at any level other than the basic entry level, and therein is the problem. ! had the good fortune of getting Mr. Mayor on the phone one day and he pursued my problem with vigor and he really gave me service. But we need to get above the entry level in AT&T so we can get something done. Now surely we can set something up so that if we're not getting resul;ts we can go to somebody at a higher plane and it that doesn't work out, go to another one and that is something they must do. Thank you. Shirley Taylor: I've lived in Tustin area for over 40 yrs., 20 in Tustin Meadows and the last 20 Minutes - City Council November 6, 2000 - Page 16 · in the unincorporated area that is called North Tustin. I've been very unhappy with Media One pfimadly because we couldn't get some of the better channels: TLC, History, Court TV, and those I think are very good things that I like to watch. I had Communicom, Comcast, Media One, and now AT&T, and I might mention after what the gentleman said about quitting the AT&T phone service, my daughter was in Japan and for long distance calls it was over $30 for a call. I switched to another long distance carde'r and it's now under $5. ! keep getting calls from AT&T pleading with .me to go back and I won't even talk to them. Anyway, we had 3 receivers put in when we found out we had to get them, and remote controls, there was a nice young man that came with the eqpt, unmarked car--there was no way of telling if he was really with AT&T but he did have it on his shirt--and he did'come with a box so I figured he was with AT&T. Anyway, he was very nice and apologized the whole time because he couldn't find 3 boxes that worked, and the same thing with the rernotes--he kept going back and forth to the truck, and was very apologetic that they left him with bad equipment. But he did finally find 3 different remotes. We put the best 'one in where we watched 'IV the most, and our reception has been terrible. I've called them, they've booted up .or done whatever they-do with the buttons, and. it's still bad--we get' nothing but streaks and lines. 'The 2' sets tha twe have hooked up to cable that we got coverage from Media One that we no longer have cable on--we can't get the local stations--they're just a mess, and one is for when my grandchildren come to visit--I don't use it all the time but when they're here I like to have the cable service. I've been looking around and checking with all the satellite dishes and I seriously think I am going to go with them. One thing that I thought was interesting is that I send my bill to AT&T in Tustin, we're part of the TUSD, we have Tustin Water, I've already taken Mike Spitzer up on the airport issue at one of our No. Tustin meetings and that didn't do very much good, but then I can vote for him even tho I can't vote for you. Thank you. Jan Eason, 14621 Red Hill, Tusfin: I iive in' Tustin Greens as you all will remember, and I am like being held prisoner because I have a HOA that likes to live in the 19~ century and will not allow us to have any kind of satellite, whether it be dish or the Pacific Bell, those little tiny ones, so I am stuck with this cable company. This cable company has told us--I watched last month's council meetin gon TV, that the reason they have the black boxes is to stop cable theft. Well excuse' me, all they're doing is infusing the black market for illegal boxes. People are going to continue to steal cable, they'll just use illegal boxes--this is, anybody that's been around for a long time knows that story. So that's not the reason, the reason, I feel is revenue enhancement, because they're telling us that we have to have a box for every TV, every VCR, and if you have in-picture TVs you have to have 2 boxes. In a.day and age where this is a 30 yr old technology, and on airliners we have multiplexingmhow come we can't have this newer technology in our homes instead of using 30 yr old boxes. This is just revenue enhancement for AT&T and the last Council meeting, these guys from AT&T are up here talking about this intricate, complicated technology like we're a bunch of boobs and we can't understand it! This is rediculous! (Applause!) As far as the tax refund in this little letter we all. got, they like to insinuate that they had something to do with getting this money back. Excuse me, it was Continental Cablevision and Times Mirror that filed the original appeal in the CountY. I have been waiting for years for my money back. They took this opportunity when they needed some good will to give us the money back that we have been waiting for for at least 8 yrs. This is not good communication--this made me mad. Also they talk about how ali the cable, satellite and broadcast providers thruout the U.S. require the use of these converter boxes. This is like it was brought up at last month's meeting that when AT&T provided our phone services and the only people that could buy telephones .from .Western Electric was the phone companies--we couldn't purchase them because we had to rent them from them--they're doing it again with the cable thing. You get dish TV, you buy your cable Minutes - City CoUncil November 6, 2000 - Pas:e :[7 JT: box, it's a hundred bucks and you own it forever. After 2 yrs of this I will have spent $120 and I still don't own the box. Also, they have this little dog and pony show that's on TV from 9am to 1 .lpm--I have yet to see it--about these cable boxes and the receivers. ! urge, oh, one more pointmat the last council meeting they said they're going to be selling information about our usage? Hey, they don't have my permission to do thatmto sell info about my cable usage, and I suspect if they do, they're treading on the Privacy Act, and if they do and they make any'revenue, I want the money. It's about my usage. I urge everyone here to write letters to AT&T Broadcom, carbon copy to City Council, to County Board of Supervisors, to Federal Trade Commission, and copy to FCC, because this is ali over the U.S. they pull this trick, everywhere they go--this is not right, it's not customer friendly. They're not giving us the service that we want and we're the customer. And it's time we stand up and be counted. Thank. you. Are there any others who would like to speak? *Betty Kempt, Newport Ave., unincorporated area?: I'm' upset because. I was forced, actuallyi, to have this box--all of us, we had 2 weeks notice' that you will have to take this or you will have a few channels is what they told us, and I believe there's like 20. I think htat what AT&T needed to do was to continue the contract that Media One had if you had 25 channels, keep your 25 channels--I don't think that they should be taking away. My second objection to AT&T is when I would try to call and ask these questions all they would say was to hold on my call was very important, then when they called to schedule an appointment I tried to complain and she said, please I'm upset too, ! just make the appointmt. Well, the man came to the house, put the box in, and when I looked he wanted me to sign the Paper and my bill was going to go up from $12.00 to $42.00 and I thought, well, nobody notified me, them were no notices of this, and I think that's wrong. I asked him about it and I made him sit there and wait while I called the billing and he says, yeah, that's it, and I said then he can take this box and take it with him and go! So he had to uninstall it and take it. ! said I wanted no part of it. So first of all, you're being forced to rent a box for something that was functioning properly prior to them coming in and doing this, and then not notifying you that your bill is going to go up 2,3, 4 times as much, is an injustice, and that's why I'm here, because i don't like injustice, so as far as an option for a satellite dish, my aptmt manager is back them and i don't think that we can have them because we have too many trees in the way and they're not allowed to be on the roof, so we really don't have an option other than. what you've provided so far. Jan Youngs, Hickory Branch, anincorprated Tustin: I'm here also because I feel outrage--I think most of the people here do. I have parents in Orange under Time Warner who pay $38 who've been getting the History channel, Learning channel, E, Bravo and a host of others. The programming under AT&T Broadband leaves a lot to be desired, but ! think the way they've approached, pushing it on us, and to me it's monopoly, but if you want cable, that's our choice, so I implore you to competitively bid this--seek other companies. You were saying nobody else is competing--well, can't the City go out and seek competitive bids on this? I think it would be to the best interests of the City and all of the citizens. Thank you. Ray Coutour, Cioverbr0ok Drive: I wasn't going to be here originally tonight cause I was feeling ill, so I decided to stay home and watch on channel 33. At 7:00, channel 33 was not receiving this program. So I called up customer service and waited for 30 minutes and was 'cut off, called up again, finally got thru, and said I'm not receiving one channel--all the rest of the channels work fine, so they asked my phone number and says Oh, you're in Tustin. aren't you? And I says yes. "Do you have a box?" I said, no not yet--and she said you're having Minutes - City Council November 6, 2000 - Page Jt: LJ Jt trouble with channel 33, just one channel? Oh we've been having problems with that all night. I brought a videotape cause I was going to record itmit's mostly static--about 30-40 minutes into the program which I totally missed, I changed over to several other channels to show that they work, if anybody would like to view this, be my guest. Please leave that behind. I have a queStion for Council. Is that legal? For them,, if it is in fact, and I'm not saying it is, but if this was an intentional, you know, signal's gone doWn tonight obviously with this being the main item on the agenda--is that legal, madame attomey? Well, I think we'd have to look into it some moro what the allegation is, we haven't heard AT&T's response. I think we need to hear their response first. Certainly I think it woUld be inappropriate for them to be intentionally not programming the City Council meeting, but we don't know if that's in fact what they did. I'll just say this--I know that.the last time, not two weeks ago, but when we did 'haVe an AT&T hearingml don't know how long ago it was, in May, I found out that the signal didn't work that night either. So maybe it's a coincidence. Linda Smith, 540 W. 3rd, Tustin: One of the things you do is consistency, duration, and frequency, so you evaluate it. I iive in Old Town and have lived in Tustin for 28 years and a lot of people have already said what I would say but i'd like to point out I got notice with one of those door knob signs on my front gate which I happened to pickup on Sat. moming and it said they would be changing the cabling on Tues. I had no idea if it was the previous Tuesday or the next Tuesdaymi hadn't been out there for a week. ! called on Monday'and they said it would be next Tuesday, and I remember seeing on that flyer that we would get free boxes installed. When the gentleman came out the following Saturday, somewhere between 1 and 5, he brought in fortunately 3 boxes that worked but said I needed a box for each TV and VCR if they're combined and set them up, and I actually have 3 boxes and I cannot tape because apparently i'm learning that you need a separate box for the VCR if you want to do a separate tape. That was not informed. But i think the most interesting comment was by this gentelman who. had been transferred from the Oakland office, I'm not sure if Media One or AT&T, he didn't say, but .he'd been transferred about a month before and all he'd been doing was installing these .boxes which he found kind of odd because .up in Oakland he was de-installing those boxes. He said it was an old system. So that's my contribution to this. Thank you. Lee Youngs: Should we stay with AT&T or go with someone else? The one thing I do miss and we're talking about, tonight is Channel 33 no longer has anything from the community involvement from little shows from police had shows on there before, I had a little 'puppet show on there for kids, we haven't been even able to get in the building or near anybody. Are they planning to open it up again for any community involvement? Thank you. Would you guys plan to address that please? Earl Williams: I was here at the last meeting and everybody before made issues of most of my items, but the black box basically is for control, let's just face it--that's what controlling what we see and how they can controll us. They talked strongly about the pilferage of signals before, this eliminates thatmthey can. control us over that. The thing i really wanted to do is' talk about--after the meeting last time a couple of the reps were out in the lobby area and the Minutes - City Council November 6, 2000 - Pal~e ].9 JT' Tw ~ Tw attitude was, well, this is kind of a problem---I realize that they cannot change the policies of AT&T nor Can they make those operational changes other than trying to improve customer service and I don't think they've done that yet either, but the fact remains that none of us are happy with it. I do not live in Tustin, but i want to strongly urge those, of us who do not live in Tustin, that we contact Supervisor Spitzer's office to work jointly with the Mayor and the City Council here and other city councils and let's get this resolved and resolve it for the good of all the people, becausae many of us rely upon the TV for news and other items as well as entertainment. ! want to say one more time that (end of tape .... )...er, whatever you wanna call them, is an increase. Mine I thought was only gonna be 33% but when I look at the total package that I had before AT&T, it now will almost double by the time they charge me for the boxes and I get back to the movies and everything that I had before. I got an announcement, ! read something that Social Security was gonna have a 3.5% increase. Mine just went to AT&T, t'11 tell you. Thank you. John Vicander, Tustin: I iive in the Broadmoor Homes and one of the things that I've seen is that they're requiring' us to have a box and I'm really frustrated about that because when I g°to babysit; as much as I don't like babysitting, friends in' Lake. Forest, they do not require cable boxes, which is interesting. They get a very large amount of cable channels, speed vision, which is a benefit if babysitting, but I don't see why AT&T is demanding that we have a box, and if they do force me to go to a cable box i'm seriously looking at dish, and as much as So. Tustin residents might not like it, ! plan on setting my cable box on the railroad tracks for a north or southbound Amtrak. I am justmthat's what I think we should do with this company, is send them out of town on the rails. Bruce Ander, Norwood Park, Tustin: I've lived here since 1960. A couple of things that have not been mentioned tonight is one, my installer said that this box is not the last box you're gonna get--they're gonna dp 'em all out and put in even a bigger box, and what they're gonna charge for that one, who knows. Also, one thing, the little TV guide thing you get, they are gonna charge extra for that, too. So even the menu is gonna be more money, per month. is that it from the community? Okay, let me do thismwe been going an hour and a half-- would everybody like to take a 5-min. break and ..... keep goin'? Okay. Good. We've said our opiece. Now, the gentleman from AT&T, please--you now have the floor. Do you want the floor?. We have one more comment? Johnathan Thomas, Holt Ave., Tustin: I just Came from my home, on channel 3 of the new box, and they cut it off right in the middle of your speaking, with a public service announcement from the company to try and say, oh, we understand you're having problems and all this stuff, but, we're better than that. Whew! i just ran all the way here. They just cut it off--they cut it off right in the middle of everything you were saying--it was a video. And so it's gone? So when they cut it off it's gone? Thomas: Yeah, didn't get anymore service--I don't think .... So it is channel 3 and not 33 as the gentleman .... Well .it depends on where you are. Thomas: It's channel 3 on ours. Minutes - City Council November 6, 2000 - Page 20 Tw So they cut them off. That's scary. Thomas: But I mean there are so many things that are involved with this whole 'thing, too, like with our homeowners association, we had a contract with them and we pay it within our homeowners association dues. So, and it's $1.00 for every extra hookup. Now it's $3.50 for every hookup, plus, and basic cable got all the channels--I got everything except for the pay channels, everything. And now all of a sudden I'm gonna get 10 channels, or whatever, 1 thru 13 or whatever, so you just don't get anything at all, and like everybody else that's here, I was having problems in August and the technician came out and said what was wrong with the whole, thing, and it took them until literally this last week to come back and fix it, and ! have made at least 10 phone calls to them, spent hours sitting on the phone with them, and I asked to speak to a manager on the phone and they said well. they're all busy right now. And I said, there's nothing they can be doing right now that's more important than talking to me right this minute. They put me on hold for a half-hour, easily,, and finally someone comes on and says, --my complaint was that they had told me that they were going to come out to the house and fix the problem. NeVer showed'up. So I call back and say, well you need to come at my time this time, after 6pm--I can't take another day off work.= So he said he couldn't do that, and said I'd have to take another 3-hr. window. And I just said, you know, that's not going to work and ! need you to know--that whatever you tell me right now, I'm taking it to the City Council. My name is' Johnathan Thomas and I live on Holt Ave. right over. Thanks. Tw Thanks for runnin' down. Jt That's dedication. We've actually had people come down in slippers at times. Kimberly Barnhart, Pacific St., Historic Tustin: I just wanted to let you know that I have been attempting to follow this on TV . was aware it was being broadcast thru channel 3, and I was watching channel 3, watched my nabor Lin speak and every few minutes during the broadcast the broadcast was interrupted with the pre-recorded message, a special message for residents of Tustin from Debbie Pickelow, and ! got so frustrated because l live close i just grabbed my keys and ran down here because I was trying to find out what was going on and...I've had the same problems as everybody else--I just wanted to let you know that I have had the same problems With communication--not getting callS back from people, my husband has taken this up for weeks now, andl just wanted to encourage everyone hem we've chosen not to do any business with AT&T. If I can live with my 2-yr-old who is living without his Blues Clues dght now, then everybody else can suck it up and turn in your boxes and don't give them any more business. Thank'you. Jt I' see new faces did a lot of you just come down because...? we have new people. How many new people do we have? Del, let me just let these guys get their comments out and....you wanna let Del talk? JT If l could get some of the folks to take seats because it's getting really jammed over in the comer if you'll please grab a seat. I do want to encourage you--you will get an opportunity to speak. We've had over 20 speakers so far. What I'm gonna do is let the folks from AT&T comment now. And then allow you guys to come up and comment as well because ! think in fairness they've 'listened to a lot of things--it might answer some of the questions you have and we have a lot of questions too, sO we"l stay here as long as this takes to get done, okay? Unidentified from audience': Excuse me, did you know the signal from AT&T's been interrupted? Minutes - City Council November 6, 2000 - Pas:e Jt Yes, sir. Exactly. Right in the middle of my speech, I heard. (audience background talk) ............. (end of tape) Tape #2 backup: Del Heintz, AT&T: One of the overriding questions this evening was our P! tax refund issue, an important issue for our customers. We as a cable company, be it Continental or Copliconnie(?) or Time Wamer or Comcast or Cox, we fought on behalf of the constituents, our customers, for what we felt was an undue burden and undue tax levied upon us by the Co. of Orange, thru 9 years, 9 yrs. Of arbitration and 9 yrs of political hearings. We won that battle for our customers. The refund process has begun and it is timely with the box placement, it's just pure coincidental. Jt How much will that be per household. Heintz: It varies," Jeff. Steve Sawyer, AT&T: I think the avg customer should receive about $87 but a lot of customers are getting as much as $143 on their bill, because that was a set fee of $2.00 a month and it obviously varies by the length of time that they were a customer from ! think the dates were Feb., 1990 thru Dec., 1998, so depending on how long you were a customer will determine how much refund you get. Heintz: There are state laws that we are complying wth that was a very lengthy negotiation with the Co. Of Orange. Those refunds are' coming to the customers on a timely basis. In fact, ali current customers in Tustin, who were with us 'in those time frames receive those credits · automatically. It" customers who may be new that have to apply for the document to receive the refund, okay? We're going to be in compliance with thatNthere are very strict state regulations on that issue, 'Council, and we're gonna go forward with that. Los Angeles Unified School District, there was a comment by one of our customers, channel 58, in the County of Orange it's called the "must carry", it's a federal law. Just like we have to carry channel 2, 4, 7, 9, 11, 13, 56, 50, 28, channel 58 is mandatory cardage by the federal govt just like channel 34 and like 22 and like 54. We know you prefer to watch the Tustin Unified School Distdct channel but the LAUSD channel is a mandate-we can't get away from it. Set-top questions are the same they have been the last two months--there is no change. Set tops are a fact of life,' we're moving forward with Our set-top technology but it's a fact of life--it's not changed in the last two meetings, Jeff. ' Jt Could you repeat that--I think a number of people have not, were not able to hear that Del, I'm sorry. Heintz: Our set top technology deployment is a fact of life-it's the same answer as the last 3 meetings, is the technology we've decided to play is the most effective and efficient use of technology and capital and we will go forward-every community in Calif. Requires a set-top, and we apologize in~ a way because it's not convenient for the customers, but no matter where they go, be it us, or anybody else, a set-top box is a requirementNyou have it at your. house, dght, Jeff? JT Right, and I was going to ask you cause there was some confusion--some folks do believe Minutes- City Council November 6, 2000 - Page 22 and it was brought up tonight, that you could go into Cox and have a direct cable link into yOur 'l'V--it would give you the most basic service but not the cable channels, and therein lies one of the major questions here, can that be done? Heintz: AbsolutelY, and it begs repeating. There are 22 channels available on Basic One tier in Tustin for $8.79 a month plus the taxes--that does not require a box, it is a direct connection to the back of your TV set and that is available for any customer upon asking. It's called Basic One. It has every single off-air channel, it is the local govt channel on channel 3 when the whole system was rebuilt, OCN is an example. MD My restaurant happens to be in Comcast area out of Santa Ana. I don't have to have any boxes and i get a lot more than 22 channels, and dght now my restaurant bill is probably going to be a 'little less than my house bill for 2 'i'V's and I've got 4 there. It's just, I mean, ! don't know whether I can take credit for this wave of people or not, cause I went absolutely crazy at the last meeting, but as you can.see, sir, it's not just me. It's my citizens. In fact they say have my daughter home at midnight and don't screw with my TV, know what I mean? You listen to your custOmer service. It's customer-service, Del. 'It's customer service.. What part of customer service are we missing here? You gotta have somebody talk to them on the phone! Don't' leave em on hold for 30 minutes. (loud applause) That's all they are asking for customer service! Pickup the phone, say, hello, AT&T Broadband, may I help you? Yes, sir, what is your problem. Well, sir let's do this--we're gonna take care of that for you right away--not "press 1, press 47, press 12" and hope that you get somebody to talk to. All these constituents want is some service and some kind of caring by.one of the largest corporations in the entire wodd! (applause) Del Heintz: Michael, we agree with you and we're working very hard on that. We've talked about this a couple of times--I'm gonna repeat it--if there's one thing that I am, it's consistent.' I've given you the analogy time and time again: when you tear up a street in Tustin you have thousands of constituents mad at you. We're doing that with our network. Our rebuild, and it's intensity and the outage we cause by the rebuild has been very difficult for us to handle. It ddves a lot of additional phone calls. We're very aggressive in the market place with our acquisition marketing campaigns. We track the statistics by federal law on a regular daily, houdy basis. We're real close to meeting those stats. We've got some ways to go, there's no doubt about it, and we have processees and methods and procedures that are coming right down from our senior executives to improve the process. We're just in that limbo state where we quite haven't got there yet, Michael. We're not ignodng our customers, for God's sakes--they're our life. We're just in that limbo state--we're working real hard to make it better. Tw: Del, I've got a question for you. Can you agree that your rollout of the boxes besides the prices, but just what you heard to night and what you heard 2 wks. ago--it's been a disaster, your roliout program has been a disaster, from customers getting calls from your service guys not showing up, from getting put on hold for hours, for boxes getting installed that don't work, I mean, we heard tonight, but the rest of us up here have had phone calls--I've been stopped at the supermarket, at my kids' soccer games, and everywhere I've gone in town, and it's really been a disastrous--I mean you're not the only company who has had a disastrous roliout, but besides the programming and the costs, the service of this whole new, you know, the box situation, has been a disaster. .Steve Sawyer: I would 'just like to ask, and I know that Mayor Thomas you had brought a binder. showing the letters that you've received, and unfortunately, those have never been forwarded Minutes - City Council November 6, 2000 - Page 23 Jt to me or to Del, so I know that the County of Orange in which we service about 2500' customers, tracks it regularly, they email me--Vicky Gray is the cable coordinator for the county, overseeing all the cable operators, that they have time to write up just a quick 2-line, this is the customer's name, address, phone number, and specific problem. It's much easier to solve the problem when we have the specific information. Now ! personally have been here at least a dozen times and have made that request from this podium to get specific information, and I have never gotten specific information, other than from Councilman Doyle and from Joe Meyers on a handful of occasions, calling and giving me specific information with a customer name, address, and exactly the problem, so I would love to have any letters that the City has received, because they have not been forwarded to us, and I have made that request on numerous occasions. · . Joe, can i get photocopies of every one of these? Can ! give this to him? !'!1 give this to you tonight. Most of these are fresh, ! mean in the last week... Heintz: I confer. I've been back working with the City of Tustin as Govt Affairs Liaison person for about 8 Weeks. In 8 weeks time I've had 4 specific names and addresses given to me. Friday, I got paged by the City Manager's office because of Mr. Doyle's issue with Eva. And I responded within 2 minutes from my vacation and within hours, we were at her home taking care of the issue. When you get us the information, we react, we respond. We have a special set of phone numbers for you to call and those special services people are only to handle your needs and your customers' needs. Tw Wait a second, thru the chair. Lj Mayor Thomas, I think the City Manager would like to respond to this issue because. Bhuston: Just for the record, we need to make it clear. I think AT&T is missing the point. We are not the customer service bureau for AT&T--we're the City of Tustin. It's requiring us to tie up staff time that has other responsibilities to constantly forward complaints that these gentlemen know what they are, is a little disingenious--it's not'our job to daily call AT&T and say your customer stinks--that's not our problem. Jt But understand` something too--they're calling us when that has failed. And in that failure what I have heard sometimes is they say, call the City of Tustin.. How many people have had somebody say to them "call the City of Tustin". Look at the amt of hands. Now how is that our faul~ See we're, something is breaking down, and they're unhappy, they call you, it's not settled, and they're then told to call me, and you then'say that you haven't told me what the problem is, so now I gotta circle back to you and give you these. Bhuston: I believe the whole point is, Mayor, i think we've made it very clear to AT&T generally what the problems are--they're customer service, they're install problems. This isn't anything new, I mean we'd be happy to emaii, page, fwd the letters every day which come in daily, i think the last time we had done that involved customers who were, well I won't go into detail, but customers with special needs will do that. But for day to day service, unless the Council directs otherwise, we don't feel it's our job to constantly monitor and pass on and nag AT&T about recurring problems. You know, Del and Steve, you know what the problems are. You don't need this binder any more than you need us telling you. You have heard., you were here 2 wks ago, you were hearing exactly the same thing you heard tonight only on a smaller scalel. You know what Minutes - City Council November 6, 2000 - Page 24 the problems are and if you met with all of these people who are out fielding phone calls from our residents, and installing the boxes, you know, you know what the problems are. It's up to your company to fix .them. Del Heintz: I just want to cladfy that what we're looking for when we're asking for specific information, information that will help solve the problem. Them are 48 nodes in the City. If we know that, let's say all the calls from that day are coming from one particular node, that identifies exactly where the problem lies. To be able to try to generically look at the whole city and say that, you know, all theSe nodes are being problematic when we know if we'd get 10 phone calls from one particular area, that that's a technical problem. Now also in the same way with poor information by a technician, or rudeness by a technician, that specific information is useful for us to go back to that supervisor who oversees those technicians and' discipline, if necessary, those type of, poor service. Tw Well I think it's evident your problems are city-wide. I think it's pretty evident. Heintz: Will the Council at least accept and acknowledge that having more specific infomration is more helpful? MD Thru the chair. Why is it necessary for myself to receive a phone call from Eva, okay?. Why is that necessary, if she was tak~en 'care of?.. Raise your hand, mam. This young lady calls your office she can't get thru! She knows where I work, she can call me at my restaurant, then I'm gonna call the City manager and he's gonna page you and you're gonna page Joe, the guy over here, then we're gonna get it solved. What we're dealing with, genteimen, just once, please! Give these people customer service. That's all they're asking for, and I don't think that that's a whole hell of a lot to ask for from a whole damn town. Pedod! That's it! That's what I want you to do. Give my citizens customer service, pedod! Heintz: Agreed. And the good news, and I'm gonna say it again. On December 7th and it's an infamous day in our history, okay, we will be finished with the rebuild of Broadband rebuild in Tustin. The outages will diminish. You may not be-happy with the fact that set-tops are a part of our technology. But it's a new wodd from there on out. We've been thru a bumpy road. We've made some mistakes, and the one thing we do is we do care, otherwise we wouldn't come back here month after month and week after week, Jeff. Okay?. We do care and we're working on it--we're not there yet but we're gonna give it complete energy. Michael, it's like Eva. Our guys were there to put the boxes in for her, she just got out of the hospital 'as you've stated, now 'she was afraid, she sent them on their way. Within two minutes after I got your page we reacted, and that's the kind' of service we're asking that we can do with you if you. give us details. Jt Let me ask you something because now this has been brought up---we have a lot of. residents in the city who are handicapped. Some of these letters are gonna break your heart. We've got people who are blind and they listen to the TV stations, to the music, to the things on their TV. Well the notification was given to them in wdtten form on a doorknocker on their house. Of course, they can't read that. So guess what happened? They're in their room listening and all of a sudden, barn! It goes off. Now all of a sudden their ability, and the gentleman just spoke about the Hispanic issue--if we have the abilityi to communicate bilingualy with folks in the city that have bilingual problems, that's a problem. That's not the handicapped. , Heintz.: And Bill's right. On these special issues with our vision or heating-impaired customers, Minutes - City Council November 6, 2000 - Page 25. that's a prime example of the cooperation and they were real good, in fact he paged me out of a meeting again in L.A., somebody called right back and within hours we took care of the issue. That's the kind of stuff we're here to help with and that's the kind, there's an example of the process working. Jt Let me explain something. Del, between you and I, we're businessmen and when you came in a couple months ago, the thing is, I .said in order to win these peoPle over, you're gonna have to provide exceptional service or do sOmething outside the box, something unusual to win them over in this process. We've failedmwe have failed, I mean this has gotten worse. Each time we talk, it gets worse. Now let me tell you, I hate to say it because I don't want to be political, but I have walked every single house in this city and I can tell you how many people are P.O'd, because they yell at me when ! go to the house! It's not pleasurable so I want to make it your problem, because they've .made it my problem and I've got to pass this--I want every one of these answered. And I want to know that they are answered, Del. I'd love you to tum to them, not to' grandstand here, but to say you know what, we realize we've just muffed this thingmhow about 3 months of free service? Something! See if I took a poll we'd. get different The thing is, is, there's a little axiom in politics and you're gonna get a dose of it here only in this regard: if you got 300 people in the room, typically there are 10 times more people than these that are upset. That's 3000 people. If we were to invite them down i guarantee you they would come. We can't do this week after week continue filling this chamber upmwe're gonna go crazy, and it's not fair to you, cause I don't like beatin up on you, I really don't. I know you don't like it. I really'don't like itmwe got our guy over · here. I'm really nice, Del. The thing is. Del Heintz: Yes you are, you've been very professional. · Jt The thing is, what we've gotta do, we've got to solve the problem. What can you do for me now and promise these folks that you will take care of for them? Don't say answer the phone, please, because that's the number 1 complaint Heintz.: There's a couple of things. One of the things that the letter stated that came out from our Sr. Vice-Pres., you asked us the last time we were here to extend our hours. We have extended our lobby hours here in Tustin to 8:00 at night and we're open from 9 to 5 on Sat. which is a tdple extension of the hours. We've done that so that we can, for those people that we can't reach, they miss us, we miss them, at least there's an option for them to come to our offices. We will walk them thru how to connect .the box themselves, we'll give them a piece of paper, or we'll send them home with one of the technicians that's there to help them if they so need it. We've stepped up to the plate to do that for you. And that was the letter, the letter we sent out that arrived to every single resident in the City of Tustin on F ri. and Saturday. It specifically stated it. So we have stepped up ..... Jt Are you bUilding up your call centers to. be able to handle the amt of calls? Heintz: Absolutely! As you can tell, every company has difficulty these days attracting quality people-we're not much different there. Yes, it is not a budgeting concern, it is not a fiscal problem, we are adding and training people as fast as humanly possible. Jt Yet what the number one complaint seems to be, is that you're getting, you have to push a lot of numbers to get to somebody, then when you do you're put on extensive hOlds, with commercials, infomerciais, that you have to listen to. Then you get pushed over to somebody who is not very knowledgeable. When that person can't handle the problem, it then is supposed to go up to Minutes - City Council November 6, 2000 - Pa§e 26 somebody else, which now they have to wait an additional amt of time and then they either get cut .off or the person comes back on line and says I can't get the person for them. Does that state the problem faidy accurately? Audience: Yes Jt Faidy accurate. Heintz: And I'll respond accordingly. IVR's--lntegrated Voice Response Systems, are a fact of life for most businesses these days--I'm sure even your business has one. The City Hall has a voicemail system. Jt Yeah, but you don't have to punch all sorts of numbers to get thru. TW We have a liVe body--I'm gonna correct you--we have a live body that answers the phone here at the City of Tustin and ! hope we will always have a live body that says or answers it "City of Tustin" and directs the calls. Heintz: I'm sorry--I that--forgive me. Tw I think that's important, and people are sick of the IVRs. Heintz: Integrated voice technology is the technology we're depioying--I will tell you that we are staffing and training, one thing that we are doing, we are headng you and are hearing the customers. Our supervisors are listening to more phone calls and taking appropriate steps with call center staff, when we find them to be rude, and impatient, or are not taking care of the customers' needs, we do that. ! mean we're not perfect yet, but we're making steps forward every single day. It is part of our Methods & Procedures. Jt When will it be fixed? Heintz: I don't knOw if I have got the magic answer for that. Sawyer: Well I would 'just like to add to what Del was saying, that I can make sure that a videotape of this council meeting will be circulated within the call center so that all of these complaints are heard directly by those supervisors, in the call center so they can make those changes. Jt It wasn't broadcast though. 'Heintz: But, forgive me for the electronic faux pas, Jeff, and you know it will make goad--this thing will air every hour on the hour if you'd like for the next 3 or 4 days--you tell me what you want, we'll do it for you. TS First of all, what i've heard tonight from everybody, the box, the picture in picture problem, all of that aside, the thing that just irritates me the most is, first of all, I cannot stand waiting on the phone beyond 5 minutes for any service organization, let alone one that has the franchise within the city with a customer base this large, it is just absolutely rediculous that that situation has continued to move forward. And that's very simply fixed, by getting a bunch of people in and the fact that you have an automated system doesn't matter. If you have 20 people sitting there fielding the calls, the automated system is going to get it to them within just a few minutes, and so if we hear back again Minutes - City Council November 6, '2000 -' Page 27 · in another 4 wks that nothing has happened on that from this meeting to that meeting, I just can't see that there's much hope, that you're going to satisfy this client base at ail, because I. think if you can at least speak with these people, and ! know you're Govt liaison and you promote a good image for AT&T, but it's the people back there that are running the show that are actually there controlling '.the people communicating with these people over here have to understand that they need a live person there and not 20 minutes'down the road--that's redicuious--that is, in my opinion, a horrible thing to do with the constituents that you guys have to serve. And I know it's not your problem, ! mean you're here representing... Heintz: Yes, it is, our problem TS Okay, then I'd like to see that 4 weeks from now, no 3 weeks from now cause !'11 still be here. Iwant to see that that has been remedied and these people who have Called in aren't going to come back again--this many people coming back. saying they're waiting 20 and 30 minutes and then getting cut off? I can't imagine standing on the phone for 30 minutes, for 10 minutes 'to air a complaint, especially given this transitional period. I remarked before that even during a transitionall pedod like this, ! mean your focus should be even more aggressive on getting temporary help 'that you can talk to people to get them thru these things, and I know that you two would wish that would happen, but it's obviously not happened back there. Secondly, Mr. Mayor, when I took just a short few minute break out there, I want the record, to reflect that 4 more people had come back from home and indicated to me that during this broadcast it was interrupted with AT&T's Br°adband commercial over there, and to interrupt this public meeting during this particular testimony, I think is completely reprehensible and I hope that the feed was getting the entire meeting and I would like, when that tape is done, and available .and aired for this' city, that the meeting is aired in its full context without those public service announcements interrupting these people when. they were testifying. Can you assure us of that? Heintz: Let's do this for this evening. When we leave here and this meeting ends and we get that tape back to the playback center, which could take another half an hour to an hour, we'll get it on the air tonight in its entirety. We will then put an ad on channel 3--let me go forward please, and then we'll, put an ad on channel 3 and' 33, that says: for the next following x days, the City council meeting will be aired repeatedly in the following days and times, and we'll pull out the stops to get this thing on the air for you. Tw As long as it's not at 11 or 12 at night--it needs to be aired at reasonable hours. Heintz: Let's talk about, in the moming.? Let's talk about once in the afternoon, one'dudng prime time. Is that okay? That's 3 times a day. How about for 5 to 7 days? MD What Councilman Saltarelli alluded to a moment ago about, I went outside~people out there are saying, their TV went off at 8:30. Also, that every other station, the volume was great on, except channel 3 or 33. They had to have it tumed up as high as they could. Now, gentlemen, this is not the first time I've heard this. It happened last week also. This is what I'm talking about, These people lhad to come down here because they're interested in what's going on in this community. One lady said, I got dressed to come down here-she was ready for bed. Customer service, gentlemen, that's all i"m asking for. Got another letter here just now. Heintz.: The audio eqpt for channels 3 and 33 is City-owned, but I guarantee we'll work with you to try to correct the problem. MD How come you're the only one that has a problem with it sir?. Minutes - City Council November 6, 2000 - Page 28 Heintz: Because it's city-owned... MD The meeting before, we didn't have that problem--now all of a sudden, we got the problem. ,l'm sorry, sir, but I disagree with you. ! have to disagree on this count, period. You tell me that i'm hard to hear? I don't even need this microphone and they can hear me, right? And you're telling me that they can't hear me? All of a sudden they can't hear me? Come on. I did not fall off a turnip .truck this moming or last week. Heintz: I stick to my statement. Tw Del, to follow up too, ! guess it went out 2 wks ago as they said, but back in May when it . aired, it also went out, so it's seeming awfully coincidental that the 3 times we've been talking about, the problems with this AT&T, the cable has gone out all 3 times. So it's... Heintz: I have no answer for that, I have no knowledge. .. Tw But I'm telling you,' that's what's happened. One more thing,, about the boxes, which has been the biggest, the slap in the face that put people over the top, is people didn't want the boxes, you know they don't want the boxes, bUt then to charge them per box, per. tv, per VCR, why didn't the company think of it, that maybe you, you didn't have to charge for the boxes--it could have been included in the price, whatever, but that to me, it just set the people over the edge--being forced the boxes that you say we have to have, and then being charged per box. Heintz The. Federal govt mandates that the set-top devices and the remote controls be a separate item on the bill--we're not allowed to bundle them in to the price of the service. , Tw Then no charge. Jt Hold on, hold on, please, please, let me ask you a question. Let's bring this back to solving the problem, because I think we can put our heads together in front of all these fine people. Summarize for me what AT&T plans to do to fix the problem. Let's summarize, because we've now been talking 2 hrs and 15 minutes. What are you guys planning to do that will help these people? Heintz Rebuild outages--the off and on of the pictures--is one of the reoccurring things we hear. When we finish this rebuild in Tustin, on or near December 7, give us a few weeks after that to fine-tune the network, you're going to see remarkable picture quality, remarkable re ..... That's why we've been trying to rebuild this system for the last 2 yrs, is to' get us to the point where we can offer high-speed intemet service reliably, telephone service reliably, digital and analog tv reliably. We will pass this tape on to senior management first thing tomorrow--we guarantee you that we will have personal meetings, Steve and I, with. executives as soon as we can in the next day or two, to re- enforce the seriousness of the situation in Tustin, to tell them that our customers and our Council and our politician friends and our staff are tired and they want corrections, and we'll move that forward for you. ! can guarantee you that. Knowledgeable Customer service people, I can't train them overnight--we have a very good learning and development dept. We, ll ask ? To step up to the plate and take that forward for us as quickly as humanly possible. Okay? Next item: telephone calls to answer by a live body--we are staffing up as fast as possible. We too are having difficulty finding qualified people, but we're staffing up every day. We have huge hiring goals and ;we're working on it really, really hard. And we're going to try to hit your record for 3 or 4 weeks, okay? It's a big call center--but give us some time--we're working on it. Minutes - City Council November 6, 2000 - Page 29 Jt Where is the call center if l might ask? Heintz: It's actually--there are 3 of them in the State of California. We call it a virtual call center. The main facility is here in L.A. and Hollywood, and when that overflows it gets picked up by our ~Fresno call center. When that overflows it gets picked up by our Stockton call center, and there are built-in safeguards. And the one thing that we do know, and guys, it's only been about 45 or 60 days that AT&T has been in charge here with really any kind of day to day management control. They know call centers, they know customer service. I am excited, ! am waiting for that next step forward too, and I really believe that in my heart and my soul. Limited. program options, you heard a couple tonight, the people that want the History channel, want the Leaming channel. 'For God's sakes, the rebuild brings all those to us, okay? We've added 27 new channels, alright? Various billing issues, things that have come on customers' bills, let me. put it in perspective for you. We have about 7,380 customers in Tustin, City of Tustin customers, and we touch those customers, believe it or not, 129,000 times a yearmit's Called a transaction number, as we bill them 12 months out of the year. That means we do installs and service calls and trouble calls, and we understand the numbers--we're working really, really hard at it, okay? And it's getting better all the time. It's not where it needs to be but it's going to get there. Broadband intemet service we've had a couple of requests for that.this evening. In Tustin Currently you can buy our high-speed intemet data service, it's available to about 1/3 of the community by December 7~ it will be available to everybody in the community. We are looking forward to launching our telephone service in the near future and once we get our act together with the network and our customer service, alright? And we're looking forward to eady next year bdnging our new digital product to the market. Let's just repeat the most important thing for tonight, though. I'd like to see AT&T, the Council and our staff overhere, get together-let's put our past behind us, let's put the bygones behind us, let's work together to better one thing only, that's your constituents, customer service, and my customers customer service. If we can work together and sit down in the next few weeks and bury some hatchets and put things .behind us, let's find a way together to make it work. I will give you 20 hrs a day if you want. Jt Coiuld you pass this along to the upper eschelons of AT&T. I would like it to be known and at least then, I feel very strongly, if you want to win the hearts over, I'd give.them a rebate ~l'd give them some money back, becauSe it sounds to me like they didn't get what they paid for. One individual having to call every day and get $1.50. Heintz: I agree JT You know, I had single moms and seniors tell me that they've had to give up their days to come home, only to have somebody "no-show". They took off work, it cost them money, or they took out time, and this is more than a mere inconvenience--it"s now costing my residents money. It will make their ire go up like you've nevermthis is a small tip--if what you are saying is true, alright? Now imagine the promise you're making if you fall short. Heintz Well, let's talk about the pdces, Jeff. We've already committed in writing numerous times that these rate increases don't take place anywhere from 60 to 90 days, okay? I understand-- you've asked me what ! can give you--that today I know as a fact and I can give you that today, i'il take back this very sedous quest to senior management and they're going to see this on the tape-- you just said it to me a couple of times, and we'll key it up for them, and we'll push this thing up the ladder for you. I don't make those decisions--we'll push really, really hard for you. .Jt How quickly can you get back to me on that--a day, two? Heintz I don't kn°w what's reasonable, ! would say more than a day--give me a few days. Minutes - City Council November 6, 2000 - Page 30 Next week I could probably have an answer for you. Jt Okay, and then what we'll do at the next meeting and if any of you want to show up, we can hear what the results of that are, and be sure to communicate that. Maybe if you guys are so · inclined' over the public service channel, broadcast that to them as to what's going to'be taking place and let them know. Heintz Oh, absolutely, absolutely. MD There's a gentleman by the name of Michael Armstrong-do you know who he is?. Heintz Yes, sir. MD Ithink Mr. Armstrong should have a copy of the last meeting.and this meeting. And you say, can we sit down, can we forget what's going on--let's see, I think we talked about this in May, then we had June, July, AUg., Sept., October, November, now you're talking about December--8 months to solve the same problems. 'Steve, you were here the last time' oh yeah, this .is gon. na be just perfect---8 months to hire 20 people to answer the phone?! Mr. Armstrong should see this, Mr. Armstrong should come to this town and come to this meeting--the only thing is, I don't have enough policemen to protect him.' It's-you laugh, it's true. He's on the TV talking about ..oh yes, we're going to break up AT&T to 4 parts and everything else, let's get real, he doesn't give a good you-know-what about this little town of Tustin, southem Califomiai--he's getting his $18 million dollars a year plus tax, he. could care less about anybody in this room, and you know it and so do !! Jt I gotta admit--that was good. Heintz Have we recapped it sufficiently for us? Jt Our community has a good sense of humor, you gotta give em that. · Heintz Yes they do, and so do we, but we gotta take our job seriously and it's sedous, it's deadly serious--you've touched me in my heart tonight and I will carry it back for you perSonally. Ali I can do is carry it, airight? JT Heintz Aidght, we'll take a short break now. ..; Is this every, concern since when Jeff.* (referring to the book) JT Ail year up til now? Yeah. There's a batch of new ones in there now. Can we pass along the telephone calls, because what I'm gonna do is make a note, it's going to be arduous to do but i'll make a note of every call I get at 573-3022 .call me, I'il make a note of it, and I'll pass it along to Joe and staff and we'll be sure to get that over to you and then you can answer. Heintz And Joe has been given a special number staffed by specialists to take care of his concerns. Jt I've been-calling every one of these guys back personally and they're an unhappy crew. i~Heintz And when we get them, you can go to the County of Orange and they'll testify to this-- we respond within hours. Minutes - City Council November 6, 2000 - Page 31 Jt Okay, I expect that. You may now make your escape. ! want ot thank everybody for being here, but. LJ There is an item--he's out of order. There is an item before you--the agenda item is, and we have a process that we're going through. AT&T has applied to renew their franchise. The franchise expires July 6, 2002. The City needs to act by December 7 On this. Staff is recommending that we come back to you on November 20"~ with a recommendation of our preliminary assessment as to whether or not this franchise should be renewed or not, and there is a process that's followed if the City should decide not to renew, there is a process that allows AT&T to respond, so I think it's very important that we keep within this 'process and the City retain its options, and so I would ask the City Council to consider the staff recommendation to bdng this matter back, the issue of AT&T's franchise renewal at the meeting of November 20t~. MD 'So moved. Tw Second. ,, JT Any' discUssion? I have a question on that. As Part of this motion are we to move for non, for anything right now? Are we allowed to.. non-renewal? LJ No, I suggest you wait until that meeting to make any comments. Heintz: A point'of clarification, if l may, please? Did I hear December 7th? LJ December 7th is a deadline under Federal law and we're recommending that this be considered on November 20"~. Heintz More clarification if I could, and what statute are you quoting? LJ The Federal Cable Act. Heintz And what specific portion of that? LJ I don't have the code section in front.of me, but there's a specific time limit within which We have to consider the renewal. Heintz I'm still confused--we want to make sure that we understand this 100% crystal clear, because this is really a critical issue. LJ Well i'll be happY to send you a letter. JT How bout that? (applause) Heintz Can I have that letter tomorrow? Can I have that letter within 24 hours? TW Ask her. JT He'd like a letter within 24 hours. What would be the normal time to process a letter like that, .Lois? LJ I can get it to them in 24 hours. Minutes - city Council November 6, 2000 - Page 32 Jt Between the hours of 1 to 5? He'll show up. LJ It'll be there in 24 hours. Jt We have a motion and a second, is there any discussion amongst Council? Passes unanimously. All in favo~ (unidentified) We'll get a letter?. · JT Heintz And it will be within the next few days I'm very sure of that. Thank you--we'll respOnd accordingly. It was moved by Doyle, seconded bY Worley, to direct staff to expedite City Council consideration of AT&T's request to renew its franchise as recommended by the City Attomey. Motion carded 4-0, Potts absent. Mayor Thomas recessed the meeting at 9:27 a.m. The meeting reconvened at 9:44 p.m. Jt If you could sit down, it will be great. Under Public Input, somebody contacted us, Duke Pitts from Dish Networks contacted me and asked if he could make a short presentation to the community, i told Duke, please come.on forward and he has as much opportunity as any of you do, too. We do not endorse the company nor have any involvements with them whatsoever, so it's something I told him he would have an opportunity to do and then let the' community then.decide what their next move is. So Duke? PUBLIC INPUT Duke Pitts, representative from Dish Network: First of ail, if you need a copy of a tape to air, we'll have one for you running full, so we can get you one for. AT&T--yes that's the camera there so the whole thing is being recorded tonight. Second of all, the main thing I've heard tonight and this is very common, we're headng this more and more and we look for towns that need altemative programming to cable and with the election now, this is really what we're all about. Dish Network gives you a choice, a choice to say "no"to cable, and we're in a situation where our customer service has been rated #1 by J.D. Powers two years running, now, so we're not only rated as the best, but we're striving to improve ourselves on a day to day basis. We're across the street with tents, tv's and people to answer questions. Our founder and president, Charlie, Ergan, started in a one-man satellite shop in 1979 in a small town in Inglewood Colorado and his vision and our vision now is the commitment to beter TV and better customer service. For the majority of people we will overcome those complaints that you have. In reality with satellite, you're receiving the signals straight from the satellite dish so you don't have the interruptions, better quality picture and better audio quality, and better customer service. (HE THAN GAVE A RECORDED PRESENTATION from Dish Network). Harold Katzman, .Board President, Tustin Imperial Townhomes: ! learned tonight that ! can actually get the City Agendas to my HOA so we know what's going on, so I'm going to take Minutes - City Council November 6, 2000 - Page 33 advantage of that. But I was watching this telecast tonight and at 8:30 on the nose, we were blacked out. So I came here to voice my concems of what's going on here. You say we have a non-exclusive contract with this cable co. but you also say no one has .come to you to present cable. I'd like to encourage the City Council to aggressively pursue anybody out there and see what they · can offer and see if that offer is better than what AT&T has. I had an experience in Oct. My favodte channel went out-the weather channel. I called them and did the same thing--15 min. wait.. When I finally got a live body they said they'd have to send somebody out for just one channel--just one channel. So someone came out and guess what they said after 30 seconds? It's not the cable. Brilliant. ! hope you will pursue what's out there to see what may be better for the citizens of Tustin. OTHER BUSINESS ELECTION Councilmember Doyle encouraged everyone to vote on November' 7, 2000. Commented on candidates' information sent in the mail suggesting there had been Council corruption regarding the trash contract; said the information in the mailer was incorrect; and noted another candidate mailer had stated the Police Department needed rebuilding and said he could not understand the reasoning of the candidate who developed the mailer. Counciimember Saltarelli noted that it had been an interesting campaign; and encouraged everyone to vote on November 7% Mayor Thomas and Mayor Pro Tem Worley joined in encouraging everyone to vote on November 7% SPORTS FIELDS Councilmember Saltarelli stated he received a phone call from a youth baseball organization requesting the ball fields at Columbus Tustin be refurbished because they were in poor condition. Mayor Pro Tem Worley requested tennis courts at the Sports Park and Columbus Tustin Park be resurfaced and commented on the lack of sports field lighting in the city. TUSTIN NEWS Mayor Pro Tem Worley said the Tustin News was 'not currently distributed to the entire city and requested paper distribution to all Tustin residents. ORANGE COUNTY FIRE AUTHORITY (OCFA) Mayor Pro Tem Worley stated OCFA has been in impasse for several months; the board had made a generous offer of 14% which had been declined by the association; and warned that citizens may see firefighters picketing outside fire stations. SATELLITE DISHES Councilmember Saltarelli commented that per state law, homeowner associations cannot outlaw satellite dishes. Minutes - City Council November 6, 2000 - Pa§e 34 AT&T BROADBAND Mayor Thomas commended AT&T representatives for being at the meeting and trying to respond to citizen concems. RAILROAD INTERSECTIONS Mayor Thomas remarked on new railroad intersection arms that could alleviate trans blowing whistles at interSections; and requested the City forward a letter in support of the new railroad arms to the appropriate agency. GRAFFITI Mayor Thomas noted graffiti in the flood control channel behind The Bam and requested clean-up by the County. TUSTIN DEMOGRAPHICS Mayor Thomas stated he had met with local third graders and commented on a book assembled by the group containing demographic questions. BOY SCOUT TROOP 235 Mayor Thomas said he recently met with Boy Scout Troop 235, who had produced more Eagle Scouts than any other troop in the country. DINOSAUR DASH Mayor Thomas stated he attended the Dinosaur Dash held November 5, 2000; approximately 3,000 people attended; and stated the event was attracting worldwide runners. JT: Yeah, I've got a number of things to talk about and put some closure to tonight. I appreciate everyone coming out. My phone and Tracy's rang off the hook. Tonight is an -interesting night and you see the anger and how people are really feeling. I do commend Del and the team for coming out here and enduring it. I know it's tough to get up there and feel those arrows shooting at you and i really want to work with them to put the answer out here. So what we:re going to do is try to put something together to at least get this thing up and working and get it so it's working well. I don't want to continue kicking them in the pants---! would like to say, you know, I'm gonna let the people do it--I'm gonna let you guys do it, and if you're unhappy you let me know. We will get the information to Del and his group so they Can answer it in a timely manner. And we'll watch it and that will allow us to track it and make sure that, we can get back to you. My number is 573-3022, and you can call it any time on that number. The other thing too when you run for re-election you do run across some interesting issues. And while cable is a major issue-and it is by far one of the most volatile issues I've seen in a long time, in 8 yrs. Another part of town, too is experiencing problems with train whistles--Peppertree and Tustin Meadows. Somebody suggested a new type of arm system, called a double arm that can.block an intersection and doesn't allow any cars to go around it. Congress has been (aking this up---I'd like to figure out where Minutes - City Council November 6, 2000 - Page 35 that is in the process because what it would do, if double arms came down on both sides and nobody could get around, it's unnecessary to blow the train whistles. And one thing I did find out, a lot of the issues are federal issues-people want the solution and it's frustrating and you find out your~e dealing with the federal govt or with Amtrak which is terrible, What we need to do is at least send a letter on the city's behalf, to the federal agencies expressing the fact that we have a problem in an intersection, we have a lot of residents that are being disturbed and the train whistle blows for % mi down the tracks and just, if you've ever stood anywhere near there it's unbelievable. If it could be fixed, if there's a new technology that could fix that, short of having to build an underpass. Another issue, this is a multi-jurisdictional issue and I complained to Supervisor Tom Wilson's office--the flood control channel behind the Bam has graffiti and has for sometime. I've notifiefd his office--the candidates have been putting out signs around the channel--the signs keep coming down--fast. The county should fix the graffiti. I had a chance to talk with Nelson Elementary where you get in front of 100 third graders with questions. And I meangood questions. These kids are real good. It was"going great until we brought in one of our canine dogsl Bosco. The whole room--- we lost the whole 'group. They went dght for the dog--we had 'to remove the dog. These' kids put together a book of all these questions and what's amazing is they've got pictures in' here and questions on govt and they are intelligent questions! They're setting up polls and at Nelson Elementary the kids are going to be voting for President and all of the various offices. And they're teaching the kids to vote. TheY're asking who's our congressman? Who's our state senator?. How many seats in the House? Hey, these kids are 8-9 yrs old and i didn't have the answers for all of them. Then they write you back and ask how tall are you, the biggest man I've ever seen in my life. It.was a lot of fun. That night I got to do the Cub Scouts 235 ~ it means a lot to the kids to hear their names on tv--it was so cool. They came down here and piled on me and took pictures--and that cubscout group is responsible for producing some of the top Eagle Scouts in the country--not the County, but the country.. More out of that group than anywhere else in the country. A great bunch of kids. Not to be exceeded by the fact that we had the Dino Dash yesterday. They wouldn't let me park nearby--I ran the mile before I got there and ! think I broke the record. I got there and then found out I was in the wrong place and then had to run another half mile back, my legs were cramping! Anyway, so they way you run for office, you literally do. The Dino Dash had 3000 people there yesterday, It's the largest attendance they've ever had. It has now gotten to the point, where I'm looking at professional runners who are trying out for the Olympics. These guys are setting records--they're running from Kenya. We've got Kenyans and Ethiopians running in our races. They're coming from Cai Runners Club, Santa Monica Runners Clubs--it is so high profiles now that you almost need to form a professional division, cause I'm watching guys my age trying to run against these guys and it looks pathetic, it really does. No offense, guys. But unbelievable runners. They are going to want us to take it iup to the next level and will let us know very quickly. Do vote, do get out, it's gonna be a great day tomorrow. People are awake this time. I get calls from ali these people on all these propositions. This now brings us to our RDA meeting. COMMITTEE REPORTS - None ADJOURNMENT - Mayor Thomas adjoumed the meeting at 10:15 p.m. The next regular meeting of the' City Council was scheduled for Monday, November 20, 2000, at 7:00 p.m. in the Council Chamber at 300 Centennial Way. Minutes - City Council November 6, 2000 - Pas:e 36 JEFFERY M. THOMAS, MAYOR PAMELA STOKER, CITY CLERK Minutes - City Council November 6, 2000 - Pas:e $7 ,i., GENDA REPORT MEETING DATE: NOVEMBER 20, 2000 TO: FROM' SUBJECT: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL CITY ATTORNEY RENEWAL OF MEDIA ONE'S CABLE TELEVISION FRANCHISE NO. 12- 11-20-00 I I I SUMMARY: · · Media one requested that the City consider renewing its Cable Television franchise that expires in July, 2002. The City commenced formal renewal proceedings and held a. public headng on May 1, 2000. Subsequent to the hearing the'City requested a proposal from Media One for renewal of the franchise. That proposal has been reviewed by staff and is attached to the Resolution as Exhibit "A." After analysis of Media One's proposal and after considering telephone calls, letters, and testimony at City Council meetings on May 1, October 16, and November 6, staff is recommending adoption of a Resolution establishing the City's preliminary assessment that the City should not renew the franchise. RECOMMENDATION: Adopt Resolution establishing the City's preliminary assessment that the Cable Television franchise of Media One of Los Angeles, inc., d.b.a. AT&T Broadband should not be renewed. FISCAL IMPACT: None. BACKGROUND: Pursuant to Resolution 99-49 and .Council direction at its November 6, 2000 meeting, staff hereby presents its recommendation on the proposal submitted by Media One' of Los Angeles, inc., d.b.a. AT&T Broadband ("Media One".) to renew its Cable Television franchise. Media One's franchise expires on July 6, 2002. Staff cannot recommend renewal of the franchise pursuant to Media One's proposal in light of the numerous customer service complaints, Media One's failure to cure the problems after timely notice, and Media One's failure to address or otherwise satisfactorily respond to key areas in the City's request for a renewal'proposal. The Resolution also orders Media One to produce the maintenance service logs that its current franchise requires it to keep for the last three years.' These logs should document the actions Media One has taken to address customer service complaints in the last three years; and it will help the City Council determine Media One's compliance with the current franchise and its ability to'meet the City's. future cable-related needs. The recommended resolution is a preliminary step in the non-renewal process. Resolution 99-49 requires the City Council to hold a subsequent special meeting within 30 days of adopting the proposed resolution. At this special meeting, the City Council will receive testimony and documentary evidence. Media One will have the opportunity. to submit evidence and to rebut the. case presented by City staff. At this special meeting, the City Council will make a decision as to whether or not the franchise should be renewed. In order to allow City staff' and Media One sufficient time to prepare for this special meeting, the proposed resolution extends the time for holding the special meeting to 90 days after adoption of the proposed Resolution. ATTACHMENTS' Resolution APPENDIX B CALIFORNIA GOVERNMENT CODES SECTIONS: 53054 53055 53056 53066 53088 CALIFORNIA CODES GOVERNMENT CODE SECTION 53054-53056 53054. This act shall be known and may be cited as the Cable Television and Video Provider Customer Service,and Information Act. 53054.1. The Legislature finds and.declares all of the following: (a) In an unregulated environment, cuStomers of cable and video proViders should get their money's worth for the service they subscribe to, and one way to ensure this is to encourage that customer service standards be established and that customers be informed to those standards. (b) Cable television and video providers have made efforts to provide high-quality service to their customers. Cable television and video providers should continue to establish standards for customer service so as to further the development of high-quality customer service. (c) It is not the intent of this article to establish standards for customer service, but to encourage cable television and video providers to inform their customers about the standards they have established and to work to achieve these customer service goals. 53054.2. As used in this article: (a) "Cable teleVision operator" means the person or entity providing cable television services through the cable television system. (b) "Cable television system" means a community antenna television system, under common ownership and control, serving a franchise area or two or more contiguous or electronically connected franchise areas. (c) '~/ideo provider" means any person, company, or service which provides one or more channels of video programming to a residence, including a home, condominium, apartment, or mobilehome, where some fee is paid, whether directly or as included in dues or rental charges, for that service, whether or not public rights-of-way are utilized in the delivery of the video programming. A "video provider" shall include, but not be limited to, providers of cable television, master antenna television, satellite master antenna television, direct broadcast satellite, muitipoint distribution service, and other providers of video programming, whatever their technology. 53055. Each cable television operator or video provider in the state shall establish customer service standards. These customer service standards shall include, but not be limited to, standards regarding the following: (a) Installation, disconnection, service and repair obligations, employee identification and service call response time and scheduling. ,. (b) Customer telephone and office hours; procedures for billing, charges, refunds, and credits. (c) Procedures for termination of service. (d) Notice of the deletion of a programming service, the changing of channel assignments, or an increase in rates. (e) Complaint procedures and procedures for bill dispute resolution. 53055.1. (a) Each cable television operator or video provider shall annually distribute to emPloyees, to each customer, and to the city, county, or city and county in which the cable television operator or video provider furnishes service to customers, a notice describing these customer Service standards. New customers shall also be provided with this notice when service is initiated. (b) The notice given to new customers pursuant to this_section shall include, in addition to all of the information described in subdivisions (a) to (e), inclusive, of Section 53055, all of the following: (1) A listing of the services offered by the cable television operator or video provider which cleady describes all levels of service, and including the rates for each level of service, provided that, if the information concerning levels of service and rates is otherwise distributed to new customers upon installation by the cable television operator or video provider, the information need not be included in the notice to new customers required by this section. (2) The telephone number or numbers through which customers may subscribe to, change, or terminate service, request customer service, or seek general' or billing information. (3) A description of the dghts and remedies which the cable television operator or video provider may make available to. its customers if the cable television operator or video provider does not materially meet its customer service standards. 53055.2. After the customer service standards established pursuant to Section 53055 have been in effect for one year, each cable television operator .and video provider shall .report annually on the performance of that cable television operator or video provider with regard to meeting its customer service standards. This report shall be included in the annual notice required by Section 53055.1. 53055.3. No provision of this article shall be construed to preempt the prerogative of a city, county, or city and county to enforce customer protection standards that are contained in a franchise or license granted to a cable television operator or video provider pursuant to Section 53066.1 or that are otherwise authorized by law for other cable television operators or video providers. 53056. (a) The legislative body of the city, county, or city and county in which the cable television operator or video provider furnishes service to customers may, by. ordinance, provide a Schedule of penalties for the failure of the cable television operator or video provider to distribute the annual notice required by Section 53055.1, not to exceed five hundred'dollars ($500) for each year in which the notice is not distributed to all customers. (b) The .city, county, or city and county shall give a cable television operator or video provider written notice of any alleged failure to distribute to all customers the annual notice required by Section 53055.1 before imposing any penalty pursuant to subdivision (a). If the cable television operator or video provider distributes this notice to all customers within 60 days after receipt of the notice from the city, county, or city and county pursuant to this subdivision, no penalty shall be imposed upon the cable television operator or video provider pursuant to subdivision (a). CALIFORNIA CODES GOVERNMENT CODE SECTION 53066 53066 (a) Any city or county or city and county in the 'State of Califomia may, pursuant to such provisions as may be prescribed by its governing body, authorize by franchise or license the construction of a community antenna television system. In connection therewith, the governing body may prescribe such rules and regulations as it deems advisable to protect the individual subscribers to the services of such community antenna television system. (b) The award of the franchise or license may be made on the basis of quality of service, rates to the subscriber, income to the city, county or city and county, experience and financial responsibility of the applicant plus any other consideration that will safeguard the local public interest, rather than a cash auction bid. (c) The maximum franchise fee for any franchise or license hereafter awarded pursuant to this section or pursuant to any ordinance adopted under authority of this section by any city or county or city and county shall be 5 percent of the grantee's gross receipts from its operations within such city or county or city and county. Intrastate telecommunications services subject to taxation under Part 22 (commencing with Section 44000) of Division 2 of the Revenue and Taxation Code shall not be included, pdor to July 1, 1988, in the gross receipts subject to any cable television franchise fee. (d) AnY cable television franchise or license awarded by a city or county or city and county pursuant to this section may authorize the grantee thereof to place wires, conduits and appurtenances for the community antenna television system along or across such public streets, highways, alleys, public properties, or public easements of said city or county or City and county. Public easements, as used in this section, shall include but shall not be limited to any easement created by dedication to the city or county or city and county for public utility purposes or any other purpose whatsoever. (e) No person may commence the construction of a cable television system without a franchise or license granted by the city, county, or city and county in which the cable television system will operate. 53066.01. Notwithstanding the provisions of Section 53066, with respect to any franchise which becomes effective on .or after January 1, 1984, the initial franchise fee payment shall not be paid or be made payable in advance for any pedod of operation which occurs more than 12 months following the date upon which initial payment is made, except that in the case of a joint powers agency which includes a county, or any portion thereof, and one or more cities, formed for purposes of issuing and administering one or more cable television franchises for a community antenna system in an area comprising more than 300,000 households, there may be an advance payment of franchise fees for purposes of. the initial preparation, execution, administration, and supervision of the franchise documents and construction of the community antenna system, which payment shall not exceed eight hundred thousand dollars ($800,000). Any advance payment of a franchise fee shall be credited against a franchise fee which subsequently becomes payable. No payment of franchise fees, other than the initial payment, may be made in advance. 53066.2. (a) In awarding a cable television franchise pursuant to Section 53066, a city, county, or city and county shall assure that access to cable service is not denied to any group of potential residential cable subscribers because of the income of the residents of the local area in which the group resides. (b) Nothing in subdivision (a) authorizes a city, county, or city and county to require a cable operator to build a line extension to a home which may be too remote and where the cost to wire is substantially above the average cost of providing cable television service in that community. (c) Any city, county, or city and county may consider that a franchise is abandoned and may take appropriate action, including .revocation of a franchise agreement, after notice and an opportunity for hearing has been given to the franchisee, if it reasonably determines that the franchise has denied cable service to a group of residents because of the income of the residents of the local area in which the group resides in violation of subdivision (a). 53066.3. (a) if a city, county, or city and county elects to grant an additional cable television franchise in an area where a franchise has already been granted to a cable television operator, it shall do so only after a public headng noticed pursuant to Section 6066, in a newspaper of general circulation as defined in Section 6000, where all of the following have been considered: (1) Whether there will be significant positive or negative impacts on the community being served. (2) Whether there will be an unreasonable adverse economic or aesthetic impact upon public or pdvate property within the area. (3) Whether there will be an unreasonable disruption or inconvenience to existing users, or any adverse effect on future use, of utility poles, public easements, and the public rights-of-way contrary to the intent of Section 767.5 of the Public Utilities Code. (4) 'Whether the franchise applicant has the technical and financial ability to perform. (5) Whether there is any impact on the franchising authority's interest in having universal cable service. (6) Whether other societal interests generally considered by franchising authorities will be met. (7) Whether the operation of an additional cable television system in the community is economically feasible. (8) Such other additional matters, both procedural and substantive, as the franchising authority may determine to be relevant. (b) Nothing in this section prevents any city, county, or city and county from considering the approval or denial of an additional cable service franchise in any area of the city, county, or city and county, subject to compliance with subdivision (d), or the imposing of additional terms and conditions upon the granting of the franchise, as the city, county, or city and county determines is necessary or appropriate. (c) The city, county, or city and county shall make a final determination as to whether to grant the additional franchise within six months of the application date unless the jurisdiction can establish that the applicant has unreasonably delayed proceedings designed to consider the matters set forth in paragraphs (1) to (8), inclusive, of subdivision (a). (d) Any additional franchise granted to provide cable television service in an area in which a franchise has already been granted and where an existing cable operator is providing service or certifies to the franchising authority that it is ready, willing, and able to provide service, shall require the franchisee to wire 3 and serve the same geographical area within a reasonable time and in a Sequence which does not discriminate against lower income or minodty residents, and shall contain the same public, educational, and governmental access requirements that are set forth in the existing franchise. This subdivision does not apply where all existing cable operators certify to the franchising authority that they do not intend to provide service within a reasonable time to the area to be initially served by the additional franchise. 53066.4. Every cable television system operating under a franchise or license awarded pursuant to Section 53066 shall, by July 1, 1984, and thereafter, offer to make a lockbox available to each of its subscribers. The monthly service charge for a lockbox shall not exceed fifty cents ($0.50), except that .on January 1, 1985, and annually thereafter, the maximum monthly service charge shall be increased by an amount equal to the percentage increase in the Consumer Price Index. A city, county, or city and county is not precluded by this or any other provision of law from requiring, as a condition to the granting of a franchise, that a cable television system make Iockboxes available to subscribers without charge. For purposes of this section, a "lockbox" is a parental control device, either in the form of a separate unit or incorporated into a descrambler or other piece of equipment used to provide cable television service, which is made operational by a key or by a code, and which enables the subscriber to prevent the viewing of any pay channel offedng adult programming. 53066.5. Unless a cable television system operating under a franchise granted pursuant to Section 53066 incorporates technology to prevent unwanted reception of' audio and video signals from occurring under normal operating conditions, the system shall provide a written statement to all new subscribers advising them that audio or video signals, or both, may be present on certain channels to which they do not subscribe. CALIFORNIA CODES GOVERNMENT CODE SECTION 53088-53088.2 53088. This article shall be known and may be cited as the Video Customer Service Act. 53088.1. (a) '¥ideo provider'' means any person, company, or service which provides one or more channels of video programming to a residence, including a home,~ · . condominium, or apartment where some fee is paid, whether directly or as- included in dues or rental charges, for that service, whether or not public rights- of-way are utilized in the-delivery of the video programming. A "video provider" shall include, but not be limited to, providers of cable television, master antenna television, satellite master antenna television, direct broadcast satellite, muitipoint distribution services, and other providers of video programming, whatever their technology. A video provider shall not include a landlord providing only broadcast video programming to a single-family home or other residential dwelling consisting of four units or less. (b) "Material breach" means any substantial and repeated failure to comply with the consumer service standards set forth in Section 53088.2. (a) Every video provider shall render reasonably efficient service, make repairs promptly, and interrupt service only as necessary. (b) Ali video provider personnel contacting subscribers or potential subscribers outside the office of the provider shall be cleady identified as associated with the video provider.' (c) At the time of installation, and annually thereafter, all video providers shall provide.to ali customers a written notice of the programming offered, the pdces for that programming, the provider's installation and customer service policies, and the name, address, and telephone number of the local franchising authority. (d) Ali video providers shall have knowledgeable, qualified company representatives available to respond to customer telephone inquiries Monday through Fdday, excluding holidays, during normal business hours. (e) Ali video providers shall provide to customers a toll-free or local telephone number for installation, and service, and complaint calls. These calls shall be answered promptly by the video providers. The city, county, or city and county may establish standards for what constitutes promptness. (f) Ail video providers shall render bills which are accurate and understandable. (g) Ail video providers shall respond to a complete outage in a customer's service promptly. The response shall occur within 24 hours of the reporting of such outage to the provider, except in those situations beyond the reasonable control of the video provider. A video provider shall be deemed to respond to a complete outage when a company representative an'ives at the outage location within 24 hours and begins to resolve the problem. (h) Ail video providers shall provide a minimum of 30 days' written notice before increasing rates or deleting'channels. Ail video providers, shall make every reasonable effort to submit the notice to the city, county, or city and county in advance of the distribution to customers. The 30-day notice is waived if the increases in rates or deletion of channels were outside the control of the video provider, in those cases the video provider shall make reasonable efforts to provide customers with as much notice as possible. (i) Every video provider shall allow every residential customer who pays his or her bill directly to the video provider at least 15 days from the date the bill for services is mailed to the customer, to pay the listed charges unless otherwise agreed to pursuant to a residential rental agreement establishing tenancy. Customer payments shall be posted promptly. No video provider may terminate residential service for nonpayment of a delinquent account unless the video provider furnishes notice of the delinquency and impending termination at least 15 days prior to the proposed termination. The notice shall be mailed, postage prepaid, to the customer to whom the service is billed. Notice shall not be mailed until the 16th day after the date the bill for services was mailed to the customer. The notice of delinquency and impending termination may be part of a billing statement. No video provider may assess a late fee any eadier than the 22nd day after the bill for service has been mailed. (j) Every notice of termination of service pursuant to subdivision (i) shall include all of the following information: ,- (1) The name and address of the customer whose account is delinquent. (2) The amount of the delinquency. (3) The date by which payment is required in order to avoid termination of service. (4) The telephone number of a representative of the video provider who can provide additional information and handle complaints or initiate an investigation concerning the service and charges in question. Service may only be terminated on days in which the customer can reach a representative of the video provider either in person or by telephone. (k) Any service terminated without good cause shall 'be restored without charge for the service restoration. Good cause includes, but is not limited to, failure to pay, payment by check for which there are insufficient funds, theft of service, abuse of equipment or system personnel, or other similar subscriber actions. (!) All video providers shall issue requested refund checks promptly, but no later than 45 days following the resolution of any dispute, and following the return of the equipment supplied by the video provider, if service is terminated. (m) Ail video providers shall issue security or customer dePosit refund checks promptly, but no later than 45 days following the termination of service, less any deductions permitted by law. (n) Video providers shall not disclose the name and address of a subscriber for commercial gain to be used in mailing lists or for other commercial purposes not reasonably related to the conduct of the businesses of the video providers or their affiliates, unless the video providers have provided to the subscriber a notice, separate or included in any other customer notice, that cleady and conspicuously describes the subscriber's ability to prohibit the disclosure. Video providers shall provide an address and telephone number for a local subscriber to use without toll charge to prevent disclosure of the subscriber's name and address. (o) Disputes conceming the provisions of this article shall be resolved by the city, county, or city and county in which the customer resides. For video providers under Section 53066, the franchising authority shall resolve disputes. Ail other video providers shall register with the city in which they provide service or, where the customers reside in an unincorporated area, in the .county in which they provide service. The registration shall include the name of the company, its address, its officers, telephone numbers, and customer service and complaint procedures. Counties and cities may charge these other video providers operating in the state a fee to cover the reasonable cost of administering this division. (p) Nothing in this division limits any power of a city, county, or city and county or video provider to adopt and enforce service standards and consumer protection standards which exceed those established in this division. (q) The legislative body of the city, county, or city and county, may,' by ordinance, provide a schedule of penalties for the material breach by a video provider of subdivisions (a) to (n), inclusive. No monetary penalties shall be assessed for a material breach where the breach is out of the reasonable control of the video provider. Further, no monetary penalties may be imposed pdor to the effective date of this section. Any schedule of monetary penalties adopted pursuant to this section shall in no event exceed two hundred dollars ($200) for each day of each matedal breach, not to exceed six hundred dollars ($600)for each occurrence of matedai breach. However, where a matedai breach of any of subdivisions (a) to (n), inclusive, has occurred and the city, county, or city and county has provided notice and a fine or penalty has been assessed, in a subsequent matedai breach of the same nature occurring within 12 months, the penalties may be increased by the city, county, or city and county to a maximum of four hundred dollars ($400) for each day of each matedal breach, not to exceed twelve hundred dollars .($1,200)'for each occurrence of the matedal breach. Where a third or further matedal breach of the ~ame nature occurs within those same 12 months, and the city, county, or city and county has provided notice and a fine or penalty has been assessed, the penalties may be increased to a maximum of one thousand dollars ($1,000) for each day of each material breach, not to exceed three thousand dollars ($3,000) for each occurrence of the matedal breach. With respect to video providers subject to a franchise or license, any monetary penalties assessed under this section shall be reduced dollar for dollar to the extent any liquidated damage or penalty provision of a current cable television ordinance, franchise contract, or license agreement imposes a monetary obligation upon a video provider for the same customer service failures, and no other monetary damages may be assessed. However, this section shall in no way affect the right of franchising authorities concerning assessment or renewal of a cable television franchise under the provisions of the Cable Communications Policy Act of 1984. (r) If the legislative body of a city, county, or city and county adopts a schedule of monetary penalties pursuant to subdivision (o), the following procedures shall be followed: (1) The city, county, or city and county shall give the video provider wdtten notice of any alleged material breaches of the consumer service standards of this division and allow the video provider at least 30 days from receipt of the notice to remedy the specified breach. .- (2) A matedal breach for the purposes of assessing penalties shall be deemed to have occurred for each day, following the expiration of the pedod specified in paragraph (1), that any matedai breach has not been remedied by the video provider, irrespective of the number of customers affected. (s) Notwithstanding subdivision (m), or any other provision of law, this section shall not preclude a party affected by this section from utilizing any judicial remedy available to that party without regard to this section. Actions taken by a local legislative body, including a franchising authority, pursuant to this section shall not be binding upon a court of law. For this purpose a court of law may conduct de nov© review of any issues presented. 53088.5. The Legislature hereby finds and declares as follows: (a) It is a common practice in the sale or lease of cable television services for a fee to be imposed upon a consumer's failure to make full and timely payment of pedodic charges for those services. (b) It is desirable to establish certain reasonable minimum standards to prevent abuse or overcharges. ... · .. · . (c) Complicated and expensive accounting determinations are required to faidy assess the exact costs which are incurred for collection and accounting for delinquent payments. (d) Currently, the Federal Communications Commission excludes late fees from inclusion when setting benchmark rates. (e) It is desirable to encourage the practice of extending servi(~es and avoiding the immediate termination of services notwithstanding a short-term delinquency. 53088'6. Notwithstanding Section 53088.2, a fee may not be imposed upon consumers for any delinquent payment for sale of cable television services unless ali of the following apply: (a) For all contracts entered into on or after January 1, 1997, at or before the time the consumer enters into the initial agreement for services, the consumer is provided with written notice that it is the policy of the seller to impose a fee on delinquent accounts. (b) At least 10 days prior to the date a fee is imposed, the consumer is warned on the face of the notice, in writing of the late fee that will be imposed if a consumer's delinquency is not paid. This notice shall specify the date on or after which a late fee will be charged. (c) The consumer's invoice specifies a due date that is not eadier than the 10th day of the service period for which the invoice is issued. (d) The fee is assessed no earlier than 27 days after the due date specified in the invoice. (e) The fee is assessed on a delinquent balance of more than ten dollars ($10). 53088.7. (a) Notwithstanding Section 53088.2, a delinquency fee charged in a cable television transaction which is not in excess of four dollars and seventy-five cents ($4.75) and which is imposed in accordance with the procedures set forth in Section 53088.6 shall be valid. The delinquency fee may not exceed four dollars and seventy-five cents ($4.75), unless the Federal Communications Commission expressly requires late fees to be fully included when setting benchmark rates applicable to a cable television operator. If this requirement is imposed by the Federal Communications Commission, then the maximum delinquency fee charged by the cable television provider shall be 11/2 percent of the delinquent amount in the. relevant franchise areas for as long as late fees are fully included in benchmark rates. (b) A collection fee which is not in excess of ten dollars ($10) and is in addition to the delinquency fee shall also be valid in a cable television consumer service transaction if the service provider sends an employee or contractor to the customer's residence in order to collect payment or disconnect service and the fee is imposed in accordance with the procedures set forth in Section 53088.6. 53088.8. This article shall apply to the sale or lease of cable television services on or after January 1, 1997. This article shall not apply to late fee practices reflected in cable television service contracts that are specified in or subject to a court order or judgment entered on or before that date unless expressly provided to the contrary in that order or judgment. APPENDIX C AT&T BROADBAND CUSTOMER SERVICE STANDARDS AND PRIVACY NOTICES .. "..: :. ..... i~.:,,:;¥-,:~;:2:,¥,??~?.~:-~.i;!:''' -r';" "~~ : . ...... "" , L-... . ???~:;IMPORTANT LEGAL N:OTICE "-." .i:?j:~Eu:~ED'jN THiS. MONTHiS. BILLING STATEMENT' IS : ' .... . .~i"~.,;.~.~I~I{ED-'"VERSION OF AT&T BROADBAND'S;" .~?Ni.~.iCE"TO CUSTOMEr.. REGARDING poLICIES,'~ .. . :, ~::::~'P~IN~:...".: PRocEDURES' '"'AND DISPUTE' .. : ' ?i!i:~ ~:~[UTi0'~:.(+~'."NOT"CE"). " [."; L"CONTAIN$' IMPORTANT. INFOR': ':~;~ii~'D..~:,~! '~iTRATION '..OF: DISPUTES. THESE.:, ~!:~,t:-,,.~:.~:~-~[~.,~:~ i~::-...~-~:~L..~,, .~_ ...:>,.....~.~ ~..~....: ...... , - - {:~.~:SIO~'S':A. FFECT.LEGAL 'RIGHTS'THAT YOU' HAY ...'.~ -~?: --~' ..... '; ":: ' ' - ' ' ...... ~ '~!," I.-T.,S~,~,,o,<-r,~,.r-r~'r¥oo - .,. ..: ~.:..:~ .. ~-...,....,.. ..... ~/i!~:.:~, .:,~:~,~s-~.~ .~ .... ,;. '-- : !' ...:..-.:...... ;.',. ..... .. _ · ,' .... i:i!?i:~N~i"~ciEs :~:~ii::P~cT!'CES CONTAINED· IN THE.,, :..-, . ..,~...... ,:,.. ~ "'.!'-~.,.,... :~ ,:~.,:-..'-, . .,-. :, .-.. . . , . ':.. - :~i;i~~~i'BE~l~lE EFF,'ECT[vETFIlRTY (:~0),.: DAYS '~!~~A~:i:::~F:?T'~'E':~Ei'~i-CLOSED:' STATEMENT' "i :~" ?~~:~INdED:" USE:.' .o'F :AT&T BROADBAND ,;.:;. ;..~.-_,.,..~:~.~;~..~;..- ..~..~,. .... ~. - . .... . :::' ......... : .... : ... '.:-.-:.~ ~:.' · -' .:i~¥~'~,!:;:;i:!CONSENT':-TO THESE POLICIES AND' .. ... .. : . - :.... :-.;;. '. :: '" .?~~:,::: :-..':'..: . .:..~i,....,;~¥,?-:-;~..~ :' .- · .... :'::"' "' ....... '" '": /'- ! :. -'.-,.,:;,:'~ - i.;,,.:.EOR"A' DETAILED STATEMENT' OF THE CHANGES, i :~!!::~,E.i: SEE :THE ,.:AT&T;."BROADBAND WEBS!TE AT .. ! ?':i~:~-~r0adband:Cb~l.e~ln0tice. ~ .... ::...,-...:.'r;...~,,:...: .'":'::: ...: ~,.. :"' x7~s3 j ..:,:,?:~:!,. :.:4 -, :.:-: . - .... · i' ~?.:?? ~: :'i!':" ", ·" ' - _ ;' "" .... ' :::'..':- -:.. - "'"'"' ...... ' '::?:?~?'";~"~:"".i:..-.---,.-:-: ..... .:; ':: ": - i:::: ::: '~ :' -! .: :".:~,:i:.r' '"' ! '" ::' ~:!!' ~';::.:?:~:':~: :': ::i'!i-:-ii ":. ':": ':"::'"'" "" " ":"' "~ :~"::::""-""'i :; :::. I::'::~ i:' . ' "i~:'.:'.:i .:~ ::-~;:.-':::i::i: :': ::..;" ::: !:-::' :' ?"" '"' '::';' ':' .... . ;' :: ' :" "'' ''i'" - ':!.: ' -:' ": ::" '" ': ' : ' ' ' " . . . . . ..... · .... Your Local Cable Polides & Notice to Customers Complaint .- Book II Revised'9101 ', X73 NOTICE To CUSTOMERS REGARDING POUClES, COMPLAINT PROCEDURES AND DISPUTE RESOLUTION VVhen the Federal Communications Commission (FCC) issued its technical and customer service s~ndards~ it adopted regulations which require all cable mlevision operators to establish a process for resolving questions or complaints customers may have about billing for the services provided or the quality of the television signals delivered or other services we provide~ and to nott6/customers of those procedure~ We are dedicated co providing quality cable television service to our ' customers and to assuring that each problem is resolved to the customer's satisfaction. These customer service procedures, in addition to many other issues, are covered in material generally provided to you : ~t the time of installation and annually thereafter once you have become a customer. This notice summarizes some of the procedures that you need to know to help us answer questions and resolve'complaints you may have about billing for the services you receive and the quality of the television signals or other cable services we provid~ For those of our customers receiving service through commercial accounts, bulk rate arrangements with multiple dwelling owners, or .-. similar arrangements, some of the policies, procedures and services .... herein may not apply. Please refer to the terms and conditions of I documents reflecting such separate arrangements. Where such ' documents are inconsistent with the policies, procedures and : information reladng to service set forth herein, the terms and conditions i of such sepamm arrangements shall apply. : · , AT&T BROADBAND'S POUClSS ANO i PRACTICES The following Policies and Practices, set forth below, are used when .... ' ~ providing you cable ~elevision and other cable Services. We may change .... ::.;..ii: "' :. :- them in the future and will notJ6/you if that occurs. We will continue to --', '. · .... .'i · review our Policies and Practices as part of our commitment co continually review and improve the quality of Services we provid~ We will send you a written, electronic, or other appropriate notice informing you of any changes and the Effective Date. If you find the change unacceptable, you have the right to c~ncel your Servic~ Ho~, if you continue to receive Service after the Effective Date of the change, we will consider this your acceptance of the change. I. DEFINITIONS As used in these Policies and Pra~ce~ '~Ve", "Company", "us", or "ou~' means. AT&T Br°adbancL LLC and all affiliated entities using the brand name "AT&T Broadband", induding your local cable company, its employee~ authorized agent~ and its parents, subsicr~ries and aflii~ted companie~ '~(ou",'q/our~' or "Customer" means the customer ident~ed on the work order that was signed to begin your cableTV service and any other person using the Services provided to you or authorized by you to access or modify your account. "Home" means the place you live, including a single-family home, apartment other residence, or any other type of dwelling un~ where your Service is installed. "Service(s)" means the cable TV programmin~ cable Internet access or any other cable service that we provide to you. "Houdy service charge" means the hourly charge you pay us for certain service~ The hourly service charge is calculated using the rules and regulations of the Federal Communications CommissJon ("FCC"). It is designed to recover the costs of servidn~ ins:ailing and main~in!ng ' customer equipment. "Installed" means either installed or actJvatecL "lnsideWire" or "lnsideWiring" means the cable that runs inside your home to a point 12 inches outside of your home, and includes any extra outlets, splitters, connections, fittings or wall plates'attached to it. "Equipment" means one or more of the following: cable modem, digital consumer terminal or digital receiver ("DCT"), converter, converter-descrambler, remote control unit, security device, addressable control module,A/B switch, coaxial cable ("cable'~ which is not inside wiring, parental lock-out device, or any other device installed in or around your home, whether or not provided by us, necessary or convenient for you to receive cable TV programming or other Services from u~ Inside wiring is not Equipment. 2. PAYMENT FOR SERVICE We provide Service to you on a month-to-month basi~ Charges for Service start within 24 hours a~er Service is installecL The charges for one month's Service, any deposits, and any installation or equipment lease fees are pa)table when Service is installed. After that, we will bill you each month in advance for Service (except for pay-per-view movies or events, which are sometimes billed a~er they are provided to you). T .. The bills you receive will show the total amount due andthe payment due dam. You agree to pay us monthly, in full, by the payment due date for that Service =nd for any other charges due us, including any administrative lam fee(s) and related fees, charges and assessments due to late payments or .nonpayments, and any returned check fees, plus If we do not receive your. payment bythe due date stated on the bill, you may be charged such fees, charges· and assessments, plus the other separate and add~onal cJ-arge~ The administrative late and related fee(s), charges and assessments related to late ~ and nonpayment are intended to be reasonable advance estJma~ of costs resu~ng from late payments or nonpayments of our customer~ We will tell you the amount of these fees and other separate or additional charges ac or before the rime you subscribe to and receive our Services, prior to the time we implement or assess new ones, and in our annuaJ n~lings to you th~. You ma), avoid these fees and other separate or additional charges relating to late payment and nonpayment by making sure that your payment is received by us on or before the due daze on the bilL If your payment is not received by the due date on the bill, you agree to voluntarily pay these fees and any other receiving our Service~ · We do not anticipate that you will make par~ payments or pay your bill late, and the administrative ~ate fee(s) and other related charges, fees, and assessments related to late payment and nonpayment are set in advance because it would be difltcuk to know in advanc~ (a) whether or not you will pay your bill on rime, (b) if you do pay lat~ when you will actually pay your bill, if ever, and (c) what costs we will incur because of your late payment or nonpayment. We do not extend credit to our customers and the adminia~-aGve fee(s), related fees, charges and assessments are not interest, a credit service charge or a finance charge. Our lace fee practices may be revised to comply with applicable stye or loca~ laws, rules or regulation~ Charges for your cable Service may be billed to you together with other Services that you receive from us or our afliliamd companie~ Payment of any such bill for multiple Services is due in full on the indicated payment due date. Any failure to pay such bill in its entirety after the due date may result in administrative or late fees and/or disconnection of Service with respec~ to any or all of the Services billed. Any partial payment of a bill will be allocated by us among and between such Services and amounts charged at our discretion, subject only to applicable law. If you change the Services you receive, we may charge you a change of service fee such as upgrade or downgrade char~ The amount of such fee may vary by office location. If you have any ques'dons, please contact your local cable compare/identified on your bill in your monthly billing mailings or ask the representative you =dk to when requesting a change in Service. A listing is also provided to our customers annually in a mailing or bill stuffer. You may pay your bill by mailing payment to the address spedfied on your bilLWe do not assume the risk of undelivered rn~l and payment sh~dl be deemed made on the first business day after your payment is delivered to us. If we have an office that we have designated as a Cable Store in your area, you may deliver your payment to the Cable Store, and it will be deemed received when dellver~ or, if not on a regular banking day, on the next such day. If our representative collects payment from you at your home, there may be an additional charge for that servic~ You agree to pay all =0ms, franchise fees, and other ~ if any, which are now or in the future may be assessed because you receive our Service. If there are any billing errors or other requests for credit, you must bring those to our attention within six (6) months of the time you receive the b~l for which you are seeking correction. Payments received from you will be deemed to be paid voluntarily. 3. COMPANY CHANGES IN SEiWlCES AND'CHARaEs Subject to applicable law, we have the Hght to change our Service and delete, add to or otherwise change the Service provided on our Basic Service or other levels of Service. If the change affects you, we will provide you notice of the change and its Effective Dam_ The notice may be provided on your monthly bill, as a bill insert, in a newspaper or by other permitmd communication. If you find the change unaccepl~ie, you have the right to cancel your Servic~ However, if you continue to receive Service a~cer the Effective Date of the change, we will consider this your acceptance of the change. Please take the rime to read the monthly messages and to review your bill carefully to make sure your name and address are correct. You will generally be billed at the same rime each month~ To the extent required by law, after notice to you of a retJering of our Services or a price increase, you may ob~n changes in service tiers at no additional charge. Otherwise, changes by you of the Services you receive may result in upgrade, downgrade or change of service charg~ you for derails or call us at the number on your monthly bill if,vou have question~ A list of charges is also provided to our customers annually in a mailing or bill stuffer. 4.TrdU~:Ka, TION OF SERVICE . . . You may m~c assign or transfer the service without ~r writmn consent. · The provisions of these Policies and Practices, inclUding the dispute resolution process (Section I 0) shall survive termination, amendment or [: }:~:. !;.?'; ' expiration of your relationship with the Company, your receipt of ! · ~' i: '!i~i . Service~ or any other relationship between u~ a. Voi~t~ry Termination. Unless you have otherwise agreed (such as where you have agreed, in advance to receive Service over a spec~ied, period of drne),you have the right to cancel your Service for any reason at any firne by giving us notice. VVe will refund any balance due to you approximately thirty (30) days of the later of (i) your notice to us of the discontinuance of Service or ~i) the retum of any Equipment you may hav~ I~ InvoluntaryTerminadon/Effect on otherAT&T Servtce~ Subject to applicable law, if you fail to pay your bill when it is due or fail " to comply with any provision contained in these Polities and Practic~ " we have the Hght to terminate your Service or any other Service :... included within your bill. We may alsc~ without limit~on, require you to pay ali past due charges, an installation charge, and a minimum of ;' . one month's advance charges before we reconnec: your Service .... Further, if you do not reconnect, any rental equipment must be retumed to u~ A handling fee may be charged for ~:umed check~ ~: :. · · . In either terr~on event, if you have a payment, credit for any reason. ... (including, without limitation, an unreturned security deposit or . prepayment) at the time of your termination of service, such payment i....:!..-ii:.:il' . credit will be set offagalnst any amounts which you owe us before its ~': ':~.'-' .... ' remittance to yo~ S. EC2tnPHEHT Except for the Inside Wiring which we consider your property regardless of who installed it, the Equipment installed by us or provided to you by us belongs to us or other third parties, unless you have purchased it. We may, at our option, supply new or recond~oned You must have our prior written consent to sell or give away our Equipment~ and our Equipment may only be used in your home. if you cease to be our customer, you are responsible for returning our Equipment to us or our designee. If you move, do not leave our Equipment in your vacant home or with anyone ~ Our Equipment must be retumed to us or one of our representatives in working order, normal wear and tear exceptecL or you will be chafed the amount set for~ in the current Products and Services. Price Ust, or the revised amount of which you have subsequently been given notice, or if no amount has been specified for the particular model of Equipment involved, the re~l price for a new replacement. · . j You are responsible for preventing the loss of or damage to our Equipment within your home. We suggest that our Equipment in your possession be covered by your homeowners, renters, or other insurance- You will be directly responsible for repair, replacement and other costs, damages, fees and charges if you do not return our Equipment to us in an undamaged condition. If you have us repair or maintain the Inside WiHn~ we will charge you additionally, either by the hour or flat fee, for that service- We are not responsible for problems with the operation of your television or television-related equipmen~ We do not service television receivers or any other television-related equipment (such as VCR's, home antennas, or other cable-compatible equipment) not owned by us, even if it is at~ched to the cable or Equipment None of the Equipment supplied by us nor any of our cable placed outside your home or property in connection wi~ the installation of the Equipment and Service shall be deemed fixtures, or in any way part of your real property, unless you purchase our cable to the extent permitted by law when Service end~ The Equipment supplied by us may be removed by us, at our option, at any time during or following the termination, of your Service, and you agree to allow us access to your home for such purpose~ We consider Inside Wirin~ to be your propert~ regardless of Who m~/ have installed it. Unless otherwise agreed upon by Company and you in writing, you will continue to be responsible for the repair and maintenance of the Inside Wire. You may install Inside Wlrin~ such as addiflonaJ cable wiring and ouflet~ Regardless of who does the work, the internal wiring within your home must not interfere with the normal operations of your local cable systen~ InsideWire maintenance may not be your responsibility if you rent your hom~ Contact your landlord or building, manager to determine responsibili~. NONCE OF AvAiLAmUrr OF CONVaTaS FoR Aoomo~A~ OUT.-rs. Subscribers who install their own additional receiver connections may additional equipment. For those television sets that are not truly compatible with the cable system, some television channels may not be 6.AccEss To CUSTOMERS'HOMES You authorize us or our designees to enter into your home, in your-or your representative's presence, or upon your property during normal business hours or by appoirranent, to install, inspect, rna!. ntaln,, replace, remove or otherwise deal with the Service and Equipment supplied by us. This authortzation includes allowing us or such designee to be on your property outside your home at reasonable times even if you are not at home. You authorize us or our designee to make connections and perform other tasks that are necessary or desirable to enable us to provide Service to you or others, including connecting and making necessary attachments to your Inside Wtrlr~ If you are not the owner of your home, you are respor~"ole for obtaining any necessary approval from the owner to allow us into your home to perform the functions specified abov~ in addition,you agree to supply us or our designee, If we ask you to, ~ (a) the owner's name, address and phone number, (b) proof that you may 8ive us a~ccess on the own~s behalfi, or (c) consent from the owner of the home. 7. PRIVATE VIEWING OF UNAUTHOmZ~O SEmnCE AND USE OF EQUIPMENT We provide Service to you for your private home viewing, use and enjoyment. You agree that the programming provided over the cable system will not be viewed in areas open to the public.The programming may not be rebroadcast, transmitted or performed,, nor may admission be charged for its viewing without first obtaining writmn consent, in advance, from us and our programming supplier(s).This consent may be withheld at the sole Cmcretion of either of u~ Your local cable company may not have the right to distr~ute pay-per- view programming to commercial establishments. You rnay~ot order or request pay-per-view programming for receipt, exhibition or ~ping in a commercial establishment. You may neither exhibit nor' assist in the exhibition of pay-per-view programming in a commercial establishment unless explicitly authorized to do so, in advance, by us and our program provider(s).You may not move your converter to another location or use it at any time at an address other than your home or location where Service was installed by us without our prior writzen authorization. If you fail to abide by this restriction, you will be held liable for any claims made against you or Company on account of any unauthorized commercial exhibition. You agree not to attach any unauthorized device to our Equipment. lfyou make any unauthorized connection or modification to the Equipment or any other part of the cable TV system, you will be in breach of these Policies and Practices, and we may terminate your Service and recover such damages as rnay arise as a result of your bread~ Much of the Equipment necessary to receive our Services is available both from us and others. Regardless of whether you purchase such Equipment or lease such Equipment from us, you ~re responsible for assuring that such Equipment does not interfere with the normal operations of our local cable system and other communications sysl:ems and device~ For example, you agree not to install anything to imercept or receive or to assist in intercepting or receivin~ or which is capable of intercepting or receiving any Service offered over our cable system, unless specifically authorized to do so by us. You are responsible to pay for ali Services received or otherwise provided to your househotcL You also agree that you will not attach anything to the Inside Wire or Equipment, whether installed by you or us, which singly or together results in a degradation of our cable system's signal quality or streng~ You may not attach any device or equipment to your Inside Wiring in a way that impairs the intesrity of our local cable systen% such as creating signal leakage, which may cause a violation of government regulations, or attaching devices or equipment which, alone or together, result in a degradation of signal quality. Further, Services or signals provided by us which are carried on or transmitted through the Inside Wire or Equipment provided by us may not be commingled with signals or services provided by other~ We can recover damages from you for tampering with any of our Equipment or any other part of our cable system or for receiving unauthorized servic~ You must return our Equipment when you are no longer a customer. In some cases, you may also choose to buy Equipment from an independent store. However, analog converters with descrambling capabilities should only be obtained from us. In fact, should you see advertisements for cable converters that have descramblers in them (so- called "pirate boxes" or "black boxes"), you should understand that these devices may b~ illegal to sell or use, unless authorized by us. Because of the need to protect our scrambled Services, we will not authorize the use of any analog convermr/descrambler not provided by u~ A dt~tai converter/descrambler purchased at a retail s~ore must be authorized by us through the use of a special security device. People who use illegal converters/descrarnblers may be stealing cable service. This practice may unfairly result in increased prices to our honest - i 8, LIMITEO 30-DAYWARRANTY AND LIMITATION OF LIABIUTY EXCEPT AS EXPLICITLY SET FORTH IN THE TERMS AND CONDITIONS OF SPECIFIC SERVICES WE PROVIDETOYOU, WE WARRANT FORA PERIOD OF 30 DAYS FROMTHE DATE OF OUR INSTALLATION OR REPAIR ATYOUR HOMETHAT OUR SERVICE AND THE EQUIPMENT WE HAVE INSTALLED OR REPAIRED WILL MEET ACCEI:rTED INDUSTRY STANDARDS AND BE FREE FROM DEFECTS IN MATERIA~ ORWORKMANSHIR IFYOU REPORTANY FAILURE TO CONFORM TO THIS WARRANTY TO US WITHIN THAT 30-DAY-PERIOD, WE WILL REPERFORM THE NONCONFORMING SERVICES AND REPAIR OR REPLACE THE NONCONFORMING EQUIPMENT. SUCH REPERFORHANCE OF WORK OR REPAIR OR REPLACEMENT OF NONCONFORMING EQUIPMENT SHALL CONSTITUTE OUR ENTIRE UABIMTYAND YOUR SOLE REMEDY UNDERTHIS WARRANTY, WHETHER' CLAIMS OR REMEDIES ARE SOUGHT IN CONTRACT ORTORT (INCLUDING,WITHOUT UMITATION, NEGLIGENCF~ STRICT UABIUTY, OR OTHERWISE). IN NO EVENT Si'-IALLWE OR OUR EMPLOYEES ORAGI3q'rs HAVE ANY LIABILITY FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM OUR PROVISION OF OR FAILURETO PROVIDEANY EQUIPMENT OR SERVICESTO YOU, OR FROM ANY FAULT, FAILURE, DEHCIENCY OR DEFECT IN SERVICE LABOP~ HATERIAL~WORK OR EQUIPMENT FURNISHED I 0, DISPUTE RESOLUTION TOYOU. IT IS IMPORTANT THATYOU READ THIS ENTIRE SECTION THE FOREGOINGWARRANTIESARE EXCLUSIVEAND IN UEU OF CAREFULLY BECAUSE IT AFFECTS RIGHTS THATYOU MAY HAVE ALL OTHER WARRANT1ES, WHETHER WRIqTBq OR IMPUED, IN HAD OTHERWISE THIS SECTION PROVIDES FOR RESOLUTION FACT OR IN LAW. WE, TO THE EXTENT PERMITTED BY . OF DISPUTESTHROUGH FINALAND BINDINGARBITRAT1ON APPLICABLE LAW, DISCLAIM ANY AND ALL WARRANTIES OF WITH A FAIR HEARING BEFORE A NEUTRAL ARBITRATOR MERCHANTABILITY OR FITNESS FORA PARTICULAR PURPOSE EXCEPT AS EXPRESSLY REQUIRED BY LAW, WEWILL NOT BE LIABLE FOR ANY DELAY OR FAILURE TO PERFORM OUR OBLIGATIONS, INCLUDING INTERRUPTIONS IN SERVICE, IF SUCH DELAY OR NONPERFORHANCEARISES IN CONNECTION WITH ANY ACTS OF GOD, FIRES, EARTHQUAKES, FLOODS, STRIKES OR OTHER LABOR DISPUTES, UNUSUALLY SEVERE WEATHER, ACTS OF ANY GOVERNMENTAL BODY, OR ANY OTHER CAUSE BEYOND OUR REASONABLE CONTROL. THIS WARRANTY GIVESYOU SPECJRC LEGAL RIGHTS, ANDYOU MAYAI.SO HAVE OTHER RIGHTS. 9. CUSTOMER COMPLAINT PROCEDURES If you have any complaint regarding the Service, including b~lling service and quality of the television signals we deliver, you should contact us at the telephone number on your monthly bill or in writing to inform u~ If you can see images or hear sound from scrambled premium or adult channels that you do not subscribe to, you may have these channels blocked free of charge. We also maintain a local business office that is open weekda~ except holidays, for customer ~ We will promptly try to resolve the problem. If you are dissatisfied with our resolution of the complaint, you may notify the responsible official for your community (please refer to your cable bill for the agency's name and address). We maintain a toll-freetetephone access line that will be avalable to you 24 hours a ~ay, seven days a week, every clay of the ye~ When you call about a service problem, a customer service representative (CSR) will attempt to determine the nature of the problen~ If possible, the CSR will help you resolve the problem over the telephon~ If the problem cannot be resolved during the call the CSR will schedule a service technician to 'visit your hom~ If our workload permi~ the Service technician will be dispatched the same day. Our CSRs and service technicians are well trained and have authority to attempt to resolve a customers problem, including replacement of any non-operating equipment, in order to provide quality service_ We offer an "appointment window" for installation, service calls, or other installation activities that is either a specific time, or, at a maximum, a four-hour rime block during norrnai business hour~ We commit to a policy to not cancel our appointment with you after the close of business in the business day prior to a scheduled appointment. If we are running late for an appoirrm~rc, we will a=empt to contact you and will as necessary, attempt to reschedule to a time that is'convenient for yot~ Emergendes that affect signal qualitT, such as fallen utility pole~ violent storms or very cold weather, may interfere with reception of cable Servic~We are committed to have one of our crews promptly correct o .u1:~ges. or other service-related problems occurring as a result of an emergency situatlor~We pledge a prompt response at any time if a large area of the system is experiencing mchnical difficultie~ We will maintain complaint records for at least a one-year-period, in addition, those records will be available for inspection by the franchise authority or the FCC. We urge you to call us at the phone number printed on your bill any time you have questions or concerns about your Service, includingVCR hookup questions or problems. If you are unable to get a problem resolved to your satisfacfio~ you may write or call the AT&T Broadband Corporate Offices as described in Section 14 of these Policies and Practices. INSTEAD OF IN A COURT BY A JUDGE OR JURY ORTHROUGH A CLASS ACTION. Binding Arbitration. The Federal Arbitration Act, not state law, shall govem the arbitrability of all disputes between you and the Company regarding these Policies and Practices and the Service, including any and all claims concerning the validity, construction, performance and enforcement of these Policies and Practices. However, Colorado or federal law shall apply to and govern, as In addition, if you are d~fied with our handling of your complaint, you may contact the local franchising authority. The address of the responsible officer for your franchising authority is norad in Section 14. appropriate, any and all claims, causes of action, remedies and damages arising between you and the Company regarding these Policies and Practices and the Services, whether arising from or stated in contr~-ct, statute common law, or any other legal theory; without regard to Colorado's choice of law prindple~ ANY AND ALL DISPUTES ARISING BETWEEN YOU AND THE COMPANY .(WHETHER BASED IN CONTRACT, STATUTE, REGULATION, ORDINANCE, TORT (INCLUDING, BUT NOT LIMITED TO, FRAUD, ANY OTHER INTENTIONALTORT OR NEGLIGENCE), COMMON LAW; CONSTITUTIONAL PROVISION, RESPONDEAT SUPERIOR, AGENCY OR ANY OTHER LEGAL OR EQUITABLE THEORY),WHETHER ARISING BEFORE ORAFT-eRTHE EFFECTIVE DATE, MUST BE RESOLVED BY RNALAND BINDING ARBITRATION. THIS INCLUDES ANY AND ALL DISPUTES BASED ON ANY PRODUCT, SERVICE OR ADVERTISING CONNECTED TO THE PROVISION OR USE OF THE SERVICE. A single arbitrator v~ll be select~ in accordance with the rules of:he American Arbitration Association (the "AAA"). The arbitration will be conducted under the applicable procedures and rules of the AAA thac are in effect on the date the arbitr~on is filed unless this dispute resolution section is inconsistent with those procedures and rules, in which case, this dispute resolution section will prevail. These procedures and rules may' limit the amount of discovery available to you or u~ The arbitrator will apply applicable statutes of limitation, will honor claims of privilege recognized by law, and will take reasonable steps to protect customer account information and other confidential or proprietary information, including the use of protective orders to prohibit disclosure outside the arbitration, if requested to do so by you or the Company. The arbitrator will maka any award in writin~ but need not provide a statement of reasons unless requested by a party. Upon a request by you or us,.the arbitrator will provide a brief statement of the reasons for the awarcL An zward rendered by the arbitrator may be entered in any court having jurisdiction over the parties. . . The arbitration of any dispute irwoiving $10,000 or less shall 'be conducted in accordance with the ConsumerArbitration Rules of the American Arbitration Association ("AAA"), as modified by the Policies and Practices, which are in effect on the date a dispute is submitmd to theAA~ TheAAA's CommerdalArbitration Rules and fee schedules will apply to any disputes in excess of $10,000. Both you and the Company shall have the right to be represented by counsel in an arbitration. In conducting the arbitration and making any award, the arbitrator shall be bound by and strictly enforce the terms of these Policies and Practices and may not limit, expand, or otherwise modify their term~ If any portion of these Policies and Practices (or any portion of this dispute resolution section) is determined to be illegal or unenforceable, then that provision may be deleted or modified and the remainder of such Policies and Practices (or the remainder of this dispute resolution section) shall be given full force and effect. b. No Ctass~ or Consolidated Proceeding~ All parties to the arbitration must be individually named. THERE SHALL BE NO RIGHT OR AUTHORITY FORANY CLAIMSTO BE ARBITRATED ON A CLASS ACTION OR CONSOLIDATED BASIS OR ON BASES INVOLVING CLAIMS BROUGHT IN A PURPORTED REPRESENTATIVE CAPACITY ON BEHALF OF THE GENERAL PUBLIC (SUCH ASA PRIVATE ATTORNEY GENERAL), OTHER SUBSCRIBERS, OR OTHER PERSONS SIMILARLY SmJATED. By consenting to submit your claims to arbitration, you may be forfeiting your fight to share in any class action, awar~ This dispute resolution secdon will not apply to any individual claims you filed in a lawsuit prior to the Effective Date of these Polities and Practices nor to the claims of a class cerdfied prior to the ~ Da~ of these Polities and Practice~ This dispute resolution section will apply to all other claims, including class daims where a class has not yet been certified, even if the fac~ and circumstances upon which the claims are based occurred or existed before the Effective Date of these Policies and ~ - Limitation of Available Damages, Including Punitive or Exemplary Damages and Attomey~ Fees~ THEARBrrRATOR PlAY AWARD ONLY ACTUAL COMPENSATORY DAMAGES SUPPORTED BY ADMISSIBLE EVIDENCE (EVEN IF GREATER DAMAGES AREAUTHORI71:T3 BY STATUTE). THEARBITRATOR CANNOT AWARD DAMAGES THAT ARE NOT EXPRESSLY AUTHORIZED BY THIS SECTION I 0c AND CANNOT AWARD CONSEQUENTIAL, INDIRECt, INCIDENTAL SPECIALTREBLE PUNITIVE OR EXEMPLARY DAMAGES UNDER ANY CIRCUMSTANCES REGARDLESS. OF WHETHER SUCH DAMAGES PlAY BE AVAILABLE UNDERAPPUCABLE LAW, AND THE PARTIES HEREBY WAIVE THEIR RIGHTS, IF ANY, TO RECOVER ANY SUCH DAMAGES. THE ARBITRATOR ALSO CANNOT AWARD ATTORNEYS' FEES..YOU AND THE COMPANY BOTH WAIVE ANY CLAIMS FOR AN AWARD OF DAMAGES OR ATrORNEYS' FEES THAT ARE EXCLUDED OR UMITED UNDER THIS SECTION I 0c AND/OR BY APPUCABLE Notwithstanding the limitations set forth in the preceding paragraph, should it become necessary to resort to court proceedings to enforce a party's compliance with the dispute resolution and arbitration process set forth herei~ and the court directs, orders or otherwise requires compliance herewith, then all of the costs and expenses, including its reasonable attorneys' fees, incurred by the party requesting such enforcement shall be reimbursed by the non- complying party to the requesting party. This dispute resolution section does not prevent either party from seeking interim injuncdve relief from a court in order to preserve the status quo or to protect assets until the arbitration has been commenced and the arbitrator has an opportunity to consider the matter of interim relief. cL Arbitration Information and Filing Procedure~ Before you submit a dispum to arbitration, you must first send writmn ncrdce to us addressed to: Customer Dispute Cent, do Litigation Database Administrator, AT&T Broadband Legal Department, 188 Inverness Drive West, Englewood, CO 80112. and give us an opportunity to resolve the disput~ Similarly, before the Company takes a dispute to arbitration, it must first azernpc to contact you at your U.S. postal address on the Company's account records, and give you an op~rtunity to resolve the dispute. .You agree that ifyou do not contact us within one (I) year ofthe date of the occurrence of the event or facts giving rise to a dispute (except with respect to billing disputes which are subject to the shorter time limitations set forth in section 2, above), you waive the right.to pursue, in any forum, including arbitration or courts, a claim based upon such event, facts or dispute. If the disptrce cannot be resolved satLsfactorily within sixty (60) days from the date you or the Company is nodfied (as set forth above) by the other party of a dispute, then either party may contact the AAA in writing at AAA Service Center, 134S55 Noel Road, Suite 1750, Dallas TX 7S240-6620, and request arbitration of the dispute. You shall send a copy of any such contact ~ the AAA to us addressed to: Customer Arbitration Demand Center, c/o Litigation Database Administrator, AT&T Broadband Legal Department, 188 Inverness DriveVVest, Englewood CO 801 I:Z Infommion about the arbitration process and the AAA's Arbitration Rules and its fees are available from the AAA on the internet at http://www, adr. org, or by conmcdngAAA at the above addres~ The arbitration will be based on written submissions of the pardes and the documems relating to the dispute, unless either party requests that the arbitration be conducted using the AAA's telephone or in-person procedures. Additional charges may apply for these procedures. Any in-person arbitration will be conducted at a location that the AAA selects in the state of your address at which you receive Service from u~ Any arbitration shall remain confidential. Neither you nor the Company may disclose the exismnce, content or results of any arbitration or awarcL except as may be required by law, or to & Fees and Expenses of Arbitration. You must pay the applicable AAAflling fee when you submit your writmn request for · - i~:' ::':' arbitration to the AA~ The AAA's filing fee and administrative ' ":-'. expenses for a document arbitration will be allocamd according to ..... ... the AAA's Rules, except that for claims of less than $1,000, you will ..... only be obligated to pay a fling fee of $15 and we will pay all of the AAA's other costs and fee~ If you elect an in-person arbitration process, you must pay your share of the higher administrative fee and the additional costs for this proce~ Unless applicable substantive: law provides otherwise, each party will pay its own expenses to ' partidpam in the arbitration, including atmmeys' fees and expenses i for witnesses, document production and presentation of evidence. ~ and the expenses of the arbitrator from the other party. .[ ::-. , f. Collection Proceedings. Nothing contained herein shall '.-. preclude the Company from using a collection agency or attorney to collect money that you owe us. in such event, you agree to pay the . reasonable costs of collection or collection agency, reasonable attorneys' fees and administrative costs, including arbitration "' Exc~: as prm, ided in I~'ag~h ~ abov~ or otherwise permitted by ~ law, if we send )q~u notice, it will be cor~demd ~ when d~m:~it, ed in the U.S, mail, addre~ed m you at your laat-known addr~s, or hand i deiivered to you or to your home. We m~ provide electronic or } .i~ ".:~' .. ~hone no~ce to you, which shall be d~.med ~n when Ic~: w~:h you. If you give notice to us, it will be deemed given when received by 12. CHANaES TO PoucIES AND PRACnCES These Policies and practices are subject to amendment, modification or termination if required by law or regulation. We will notify you of changes to these Polities and Practice~ Any changes proposed by you will only be ef~-q~e when accepted in wrldng by one of our senior officers, within their sole discretio~ 13. PRODUCTS AND SERVICES PmcE [dST. Please note that the Products and Services Price List is changing and that the new Usc was not available at the rime this Notice was printed. A sepamm Products and Services Price List with rates effective as of January I, 2002, will be provided to AT&T Broadband customers in the near future. '.., .:.,: ..: .,.-.. _ - :...: ..:; 14. IMPORTANT INFORMATION ,: PUBUC INFORMATION OFFICE t~il : i Tustin Residents: City ofTu~n, C~ty Manager, 300 Centennial Way, Tustin, CA 92680 : Orange County Resident~ Dir. of Management Svcs, 300 N. Flower Street, San~Ara, CA 92702 - Bell Gardens Residents: City Manager, 7100 S. Garfield Ave., Bell Gardens, CA 9020 I : ~ Canyon Lake Residents: C~y Manager, 31516 Railroad Canyon Road, Canyon Lake, CA 92587 Riverside County Residents: Clerk of the Board, 4080 Lemon Street, 14th floor, Riverside, CA 92501 : Murrieta Residents: City Manager, 26442 Beckznan Court, Murrieta, CA 92562 OC/Costa Mesa Residents: Dir. of Management Svcr~ 300 N. Flower Street, PO Box 4048, SantaAna, CA 92702 : Pomona Residents:, City Manage~ 505 S. Garey Avenue, Pomona. CA 91766 ': ...... :; :.:i" ' Corona Residents: City Manager, 815 W. Sixth Street, Corona, CA 91720 ::;" Co, ha Residem: ~igr Mana~r, I ~ ~ CoIie~ St.. Co, ina, CA 91732 ~ I~inor~ 8~d~m: C~/~ana~r, 130 ~ Main St.. ~ ~om CA 92~$0 Costa Mesa Residents: CK7 Manager, 77 Fair Dr., Costa. Mesa, CA 92628 Lym~ood Residents:. C'm/Administra~r, Cable TV Advisory Dept., CKy of Los Angeles Inform~onTechnotogy~ II 330 Buili$ RcL, Lynwood, CA 90262 ~ ..... Bellflower Residents:. Assistant to the CK7 Administrator, 16600 Civic Center Drive Bellflower, CA 90706 Downey Residents: C~ Manager, IIII I Brookshire Ave., Downey, CA 9024'1' La Miracla Residen~: C'm/Manager, 13700 La Mtrada Blvd., La Miracle, CA 90638 Maywood Residents: CityAdministr4tor, 4319 East $1auson Ave., Playwood, CA 90270 Santa Fe Springs Re, dents: C'm/Manager, I 1710Telegraph Rd~ Sante Fe Springs, CA 90670 ': .... South [] Monte Resident~ City Manage~ 1415 Iq. Santa Anita Ave, South [] Monte, CA 91733 Paramount Residents: City Manager, 16400 Colorado Ave., Paramount, CA 90723 . Hawaiian Gardens Residents: City Administrator, 2181S Pioneer Blvd., Hawaiian Gardens, CA 9071 & Lakewood Resident.. Assitant City Administrator, 5050 ClarkAvenue, Lakewood, CA 907 ! 2 .. Inglewood Residents: Cra/Administrator, I Manchester Blvd., Ingtewood, CA 9030 I Culver C~y Residents Cie/Attorney, 9770 Culver Blvd~ Culver C~/,.CA 90232 Santa Clarita/Y~lenda Residents: City Manager, C'Ky of San~.clarita, 23920Valenda Blvd., Suite 300,-Santa Clarita, CA 9 i 3SS LA County Residen~ Sr. R.RAgent, DEPT. OF CONSUMER AFFAJRS, B,96 Kenneth Hahn Hall Of Admin. 500 W. Temple Street, Los Angeles, CA 90012 (213-974-2323) : ;:,-. , . ... Compton Residents: City Manager, 20S So. WillowbrookAvenu~ Compton CA, 90220 .: .. LA CK7 Residents. General Manager, Informati. 'on Technology Agency, 120 S. San Pedro St., Ste. #600 LosAngel. es, CA 90012 (213-48S-27SI / 213-487-S034TDDY) ': '.-i La Palina Residerrc~ City Manager, 7822Walker Street, La P'alma, CA 90623 .-. Cypress Resident~ City Manager, 5275 Orange Avenue, Cypress, CA 90630 Carson Residents: City Manager, 701 E. Carson Street, Carson, CA 9074.5 · .' . , . . Lom~ Resident'. City Administrator, 24300 NarbonneAvenue, Lomita, CA 90717 'i? : ... .. ... ' :..,. ..,.'~ .~.~ .. . · .:?::~' .- ... - .. .... :.' '.'i · ' .: :-...... .. , . AT&T Broadband The Mos~ o~.~ o.r ¥o~ AT&T Cable To Get AT&T Cable Information Kit. B~sic Basic Service is one of our most viewed levels of service. Basic Service may include off-air broadcast stations and franchise-required public, educational and government access channels. All such programming varies by community and is subject to change at any time. Currently, our cable customers must subscribe to Basic Service in order to subscribe to any tiers of video service offered. · .... .. .. .. ::: .... ~:xpanded Basic Service (where available) Expanded Basic Service is the level of service which generally carries all non-premium cable channels such as The Discovery Channel, Lifetime, ESPN, A&E, USA, TNT and, where available, regional sports. Expanded Basic Service, where available, is an optional level of service above Basic Service. A customer must receive Basic Service in order to be eligible to receive Expanded Basic. All such programming varies by community and is subject to change at any time. :Pr~rniurn Services Premium Services are generally available to customers who receive Basic Service. Customers generally need not currently purchase the additional, optional level of service m Expanded Basic -- in order to receive premium channels. Premium channels generally include HBO, Showdme, Cinemax, The Movie Channel, DI'ARZ!, and Encore. All premium services may not be available in all areas. There is a separate monthly charge for each premium channel a customer receives. Option~] Services We may also offer our customers, for an additional monthly charge, the rental of receive rs or remotes,The Cable Guide, and other services, including the ordering Pay-Per-View movies and events. Prozrarnrning We receive programming from various non-cable and cable networks. We are not responsible for the content of programs aired by these networks. Programming complaints or questions should be directed to the networks. BEFOREYOU MOVE, pi'ease call AT&T Broadband immediately. This is the best way for us to disconnect your service, recover your receiver and arrange for cable television service in your new home. Call us in advance, and we will schedule a new installation, provided that your new home is in our service area. Receivers, remote control devices and any other equipment provided by AT&T Broadband should be returned immediately, should you decide to disconnect your cable television service. You are liable for these items, and will continue to be billed until the equipment is returned. If you have lost it or are otherwise unable to return it, you must pay for it. Emergencies Emergencies such as fallen power poles, violent storms or subfreezing weather may interfere with reception of cable service. We will promptly correct, an emergency situation. I , 2 Congratulations on your choice of one of the woHd's best entertainment and information media -- cable TV! We have designed AT&T Cable to be as simple to use as it is exciting to explore! This information is provided to enable you to be more knowledgeable about your service and to answer any questions you may have. Yiewing Tips Every day, cable brings you hundreds of programs which offer some of the fines: selections in entertainment, information, education and inspiration. Here is a sample of the choices which may be available to you from AT&T Broadband: Entertainment Current, classic and made-for-cable movies, comedy, drama, TV series, programming from around the globe and more. Sports Sports from around the world. Collegiate and professional football, basketball, baseball, tennis, soccer, track, golf, hockey and auto racing. Music Rock, rhythm and blues, count~/and western, jazz, urban contemporary, new wave and an endless variety of video performances of your favorite performers. News/Information Twenty-four hour coverage of late-breaking national and world events. Congressional proceedings and talk shows. Timely financial news from national and international markets. Weather, both local and national, and locally-originated programming. Education Science, the environment, travel and the future. ~ow Ca:hie Television Works Cable television brings you more channels and generally better reception than off-air broadcast television reception since TV signals travel to your home by cable rather than through the air. Television stations are brought into your home through miles of cable. Your television reception is u~interrupted by trees, buildings and other su .trace obstacles. in addition to certain local TV stations, communications satellites let you receive many additional channels through cable TV. Individual television programs are produced in many locations around the world. These programs are transmitted to communication satellites that orbit the earth. These satellites stay in a fixed position 22,300 miles above the ear:h, allowing them to ~ransmit to your community. Local satellite dishes receive these signals. The cable television "head-end", the control center, processes these satellite signals, along with the signals from your local TV stations and other sources, so they can be t~ansmi~ced over our cable system to your home. These quality television programs are brought to your home via hundreds of miles of cable, either strung on the same poles that carry your telephone or electric service, or buried underground. Someone over ~ 8 years of age must be home during the installation of your cable television service. Anyone under 18 years of age must provide written consent on your behalf to the service person. This will ensure a thorough and complete installation. We have installed cable in your home in a manner that is consistent with Federal Communi- cations Commission ("FCC") rules. Here are a few tips to keep it operating safely and reliabi~ During severe electrical storms you should unplug your'IV set and cable receiver co avoid damage. AT&T Broadband and your set manufacturer are not responsible for damage which occurs due to acts of nature. Remember, your cable receiver operates on I I 0 volts, so take all the precautions which you would for any small appliance such as checking to see that the cord is not worn or damaged. ~ For your own safety, do not attempt to open or otherwise tamper with your cable receiver. If you have someone other than us install the inside wiring in your home, please ensure that it complies with applicable governmental regulations (such as the FCC signal leakage rules) and does not interfere with the normal operations of the cable system and other communications systems (such as radio used by the police and fire departments) and devices. Your monthly cable bill not only gives you a listing of your charges, payment and credits, but it may also contain special messages. Take time to review your bill to make sure your naxne and address are correct. You generally will be billed at the same time each month unless you are notified otherwise. Your first statement will include a monthly charge for the upcoming month. It may also include: Your installation charge. A partial charge for your first month's service if you are connected in the middle of a billing cycle. For example, if your monthly cable fee was $24 and you connect to cable on the tenth day of a 30-day month, you would be billed for 2/3 of a month. The amount shown next to the line entry "prorate" or "partial month" would be $16. Please be sure to note your payment due date. Please include any written requests in a separate letter to AT&T Broadband. All prices for services may be subject to applicable franchise fees and taxes paid to your local government~ Please refer to material provided to you when you were installed and from time to time thereafter relating to billing and complaint procedures of AT&T Broadband, including the address and telephone number of the local franchise authority's cable office. Please refer to the Payment For Service section of our Policies and Practices Notice for more information, which may be mailed or delivered to you separately. · . of Servic~ The Cable Acc (47 USC § 533) created both civil and criminal penalties for manufacturers, suppliers and users of unauthorized cable devices. This federal theft of service law supplements any exi~ng state or local laws, and provides a federal remedy against any person who, without authorization, intercepts or receives any communication service which is provided over a cable system. This federal law prohibits the unauthorized interception or receipt of any communications service over a cable system. This would include the theft of audio, video, textual data or ocher service, including data transmit:ed to or from a customer over a system that has interactive capability. The law applies to both manufacturers and distributors of equipment, as well as individual subscribers. The Cable Acc provides both civil and criminal penalties for theft of cable services. Under this federal legislation, a cable operator may seek substantial monetary damages for the theft of its cable services. In addition, if the violations are willful and for commercial advantage or private financial gain, the court may award damages of up to $S0,000 in civil cases and a maximum of $100,000 for certain criminal violations, in addition to a maximum of five years imprisonment for subsequent offenses. This legislation was enacted by Congress because it believes that theft of cable service poses a major threat to the economic viability of cable operators and cable, programmers. Tflel~ ofserv/ce creates unfair burdens on cable subscrfbers who are forced to subsidize the benefits theft other individuals are getting by receiving cable serv/ce without paying for/t. See Paragraph 7 of our Policies and Practices Notice for additional information regarding unauthorized service and use of equipment, which may be mailed or otherwise delivered to you separately. About Your R~c~iv~r Many television sets cannot receive the large number of channels offered by cable television. In order to receive these channels, as well as to descramble certain optional packages, premium or Pay-Per-View services, you may require an electronic channel selection device called a "receiver." A receiver and a remote control are available from us on a lease basis or may be purchased at certain retail outlets including consumer appliance or electronics stores. One type of receiver is simply a tuner; it converts the cable channel selected by the customer to a Iow-numbered channel, typically 2, 3 or 4. Tune your television set to the "output" channel of the receiver (for example: Ch. 3). Programs may then' be selected by ~uning the receiver to the desired channel. Many cable-ready sets may not require a receiver to get the non-scrambled channels. Some television components like VCRs, cable-ready sets and remote-control televisions are not always compatible with your cable television service. We encourage you to make sure components you purchase are compatible with your cable television service. For further information, please refer to the Equipment Compatibility section of this notification. Receivers that unscramble services also provide our customers with the option to use "parental control" to block out channels they wish not to view. Watching your television after connection to cable is easy. Just turn on your television set and the receiver (if your receiver model has an on/off switch). Make sure that your television is tuned to the output channel of your receiver (Ch. 2, 3 or 4), then select the channel you want to watch by using the controls on either the receiver or the hand-held remote control device. To ensure reliable operation, make sure the receiver is plugged into a "live" electrical outlet, not one which is controlled by a light switch. Loss of power to some receivers may result in a temporary loss of cable service, even after the power is restored. ~lf you ~h-~ve proble.rns: From time to time, you may experience a problem with your television pic:u re that can easily be fixed. Trying to fix it yourself will save you time and may even save you money on television repair. Please refer to this list BEFORE you call your local AT&T Broadband customer service depar:rnent, IMPORTANT: ils yourT~ set on the receiver output channet (example: Ch. 2, 3 or 4)? Rolling Picture · Adjust "vertical hold" on your TV set. Picture Leans to Side · Adjust"horizontai hold" on your'iV sec. Wrong Channel · ChecklV and receiver for channel setting, Snow on Screen · Check to make sure receiver is plugged into a working outlet, No Picture, No Sound · Make sure TV set is plugged into a "live" electrical outlet, and not controlled by a wall switch. · Push "reset" bu:ton on back of'iV sec, if yourTV has one. · Adjust"brighmess" control on yourTV set. Picture Shrinks · Overloaded circuit in yourlV set or elec:ric company power cutbacl~ No Picture · Check channel set:.ing on receiver and TV set.- - Check listing to make sure channel is broadcasting during this time slot. · Wait for TV station announcement 'of difficulty. · Check other channels to compare reception. ~.to:hing hsppens when I turn on my set. Double check that the TV and AT&T Cable receiver plugs are completely' inserted in active electrical outlets. If the outlets are controlled by a wall switch, make sure the switch is in the ON position. If yourTv is plugged into the back of the AT&T Cable receiver, be sure the box is plugged in and turned on before turning your TV on. ~ly L~niversai Remote Control doesn't ,,Nor~c,~.~/;ha: should ~I c~hec!<? Press the key labeled CABLE on your Universal Remote Control to be sure it's in the cable mode. Also, check the batteries in. your Universal Remote Control. The batteries may need replacing if the cable light on your remote does not light up when a button is pushed. To change them, remove the battery cover on the back of your remote and replace the old batteries with two new AA batteries. Finally, make sure there is no obstruction preventing the Universal Remote Control's signal from reaching the AT&T Cable receiver. ~1 set my¥CR timer to tape a program and it didn't Check to see if your television and VCR are on channel 3 or 4. Also, be sure the AT&T Cable receiver is tuned to the channel you wish to record. If you want to tape a locked channel, you must clear all lock options to allow the receiver to tune to and display that channel. ~/hat if I have a snowy picture or no picture? Make sure that the cable is firmly connected to the back of the AT&T Cable receiver and television. Be sure your television is tuned to channel 3 or 4. ~fx/hy arn I getting sound out of only one speaker? You may have a loose connection. You should check the back of your TV, speakers and AT&T CableTV receiver to make sure all cables are connected properly, that no wires are frayed, and no plugs are bent or broken. ~/hat if ] forget my ~Parental Controi/~urchase codes? Reference the checklist given to you by the installer. Or if you do not have one. call ),our local AT&T Broadband office and a Customer Service Representative will help you erase your existing codes and set new ones. i have a question. Who should t call? Please call a Customer Service Representative at i-888-255-5789.They will be happy to assist you. Use these steps to identify an appropriate location for your receiver. STEPS: Look at. the bottom of your receiver and write the serial number hem: You may need this number when you call customer service. Choose a spot near your'IV to place your receiver. The receiver generates heat and must be placed in a well ventilated area. Leave at least a 3-4 inch space around the sides and above the receiver DO NOT place any items ('I'V, stereo, VCR, plants, video tapes, papers...) on top of the receiver. Use the following steps to connect your receiver directly to a'i'V orVCR. A. B. C. STEPS: If you have not already done so, disconnect any current cable connection to yourT~, VCIL or receiver. An easy way to do this is to follow the cable from the wall to the connection on your TV, VCFL or receiver. Unscrew the coaxial cable from the connection. Connect the coaxial cable from the wall to the "CAB~ IN" ® or"RF IN" ~ or"CABLE' (iD 'connection on the back of the receiver. Use your fingers to securely tighten the connections. DO NOT over-tighten the connections. Connect the coaxial cable included in the installation kit from the "TO TVNCR" ® or "RF OUT" ® & © connection on the receiver to the "ANT/IN" on yourTV. If you have a VCR, connect the coaxial cable supplied in the installation kit from the "TO TV/VCR" ® or "RF OUT" ® & © connection on the receiver-to yourVCR instead. Follow the instrUctions provided with YOutVCR to connect yourTV to. yourVCR or use the instructions provided ., later in this guide. Plug the receiver into an electrical wall socket using the supplied power cord. If you want to turn on/off yourTV & receiver at the same time, plug yourTV into the power outlet on the rear of the set-top box. If you want to turn on/off yourTV & receiver separately, you will need to plug them both directly into wall power otrdets. AT&T C:abie amd ¥ourVCR AT&T Broadband wants to help you understand how to make yourVCR and cable television service compatible entertainment components. With your cable and VCR combination, you should be able to record your favorite movies and cable programs for later viewing. We want you to have maximum flexibility in watching what you want, when you want to watch ir_ 7 With aVCR, you can record what you wish to see and watch it at whatever time you find to be ..o .i' '. :-'~'... i:,--:.."'~i .. ~,". '..,:!...: .:.'.i' .... .-: :-:.i ' · -:' .-:....... _ . .. · ~ . · 8 convenient. Installation of your VCR can be completed through a variety of different methods depending upon your viewing and recording requirements. The diagram below shows how to install yourVCR. When using this option, be sure to have both your'IV andVCR set to the proper channel. STEPS: The cable drop connects to the "in" terminal on the receiver. A jumper cable is run from the receiver "out" terminal to the "in" terminal on yourVCIL ~ A second juniper is run from the "out" terminal of yourVCR to the back of your TV sec. The cable is attached either to the 75 OHM input terminal if you have a cable-ready'IV, or a "matching transformer" is installed on the end of the cable, and the transformer is then attached to theVHF aerial terminals. Cable Drop Receiver I VCR ¥CR-Ca:bl~ Hookup Warnings Additional equipment such a~ cable jumpers, signal splitters or A/B switches may cause picture distorzion if it does not meet our system's standards. Please call our customer service department before you purchase additional hookup equipment. ~) We recommend against cutting cable jumpers. An improperly cut cable may cause picture distortion. All cable connections must be fitted "wrench tight." Things you should know about how yourTV andVCR work when connected to your local cable system.: "Cab~e-J~ady" and "Cable-Compatible" ~quipm~n: One of the reasons you may subscribe to our cable system is we offer many more channels of programming, in addition to what you may be able to receive off-the-air. Some of you may have TVs or VCRs that can tune to all non-scrambled channels we provide. Others may have older sets that are unable to tune in all channels available over the cable system. Even if you have an olderTV orVCR that was advertised as being "cable ready" or "cable compatible;' the equipment may not perform as you expected when connected directly to cable. This is because there previously were no standards applicable to TV set manufacturers governing the reception of cable channels. According to new federal regulations,TVs and VCRs sold in the United States as of July 1997 cannot be called "cable ready" or "cable compatible" unless they comply with new technical requirements adopted by the FCC, including the ability to properly tune cable channels. You may encounter additional problems or interference when yourTV orVCR is connected directly to cable. For example, you may encounter co-channel interference or an inability to receive higher number channels. These problems are often solved through the use of a receiver which are available through AT&T Broadband for a monthly fee. The receiver will "convert" the cable channels to a designated channel on your'iV. Please understand that the process of converting all of our channels to such a channel means that you can only receive one channel on your TV set at a time through the receiver. This means there may be certain features of your TV orVCR that depend on channel tuning of these devices that you will not be able to use. For example, taping one program while watching another, recording two or more consecutive programs appearing on different channels, and the use of picture-in-picture may not be possible without additional equipment. Some of the channels offered on the cable system may also be scrambled and may be viewed only if a receiver is used. However, as described above, a receiver may limit your ability to use certain advanced features on yourTV set orVCR. If you use a receiver, and you have problems using the special features, additional special equipment may be necessary to regain some or all of these features. AT&T Broadband will consult with you in order to determine what specific equipment may be available to solve your particular situation. This equipment may include an additional receiver, or, if you have a receiver that can tune our cable channels, possibly a switch (or a special receiver with a switch) that will enable you-to by-pass the receiver and tune all unscrambled channels with yourTv orVCR. Please contact us regarding your needs, and we will be happy to discuss alternatives with you and give you a list of charges. In addition, you may purchase by-pass switches and additional receivers at retail outlets. Please remember, however, that receivers with descrambling capabilities should only be obtained from us. In fact, should you see advertisements for cable receivers that have descramblers in them (so-called "pirate boxes" or "black boxes"), you should understand that these devices may be illegal to sell or use. Because of the need to protect our scrambled services, we will not authorize the use of any receivers, pay-per-view, and other descramblers not provided by us. .. .. · I0 We provide remote control devices for a monthly char§e. It is also possible that the remote control that came with your TV orVCR is capable of controilin§ the receiver as well. In that case, please feel free to use it. If you choose, you may also buy a "universal" remote control device, capable of working with our receivers, at a retail outlet including many appliance or consumer electronics stores. Subscribers who install their own additional receiver connecl:ions may not be able to receive all broadcast stations carried on the cable system without additional equipment. For those television sets that are not truty compatible with the cable system, television broadcast stations located ~bove channel 13 may not be receivable without ~dditionai equip'menc. The equipment necessary to receive all broadcas~ stations carried on the cable system is for lease from your cable company and may be available from retail stores. :._.. : , -.i~ .;.. 4 ·"' i : 'T : · .... .. }- . . '.i.?..., ::;" .. '-L:.;~.. :;' ':'. L' :;:L...~ :i",:~:; · ~ ...:: .. . .i' ~- ;,: ;: ':, r;-:..; !i :i. ' .' · · . . ?. · · ':.; ,.~i-':. ·. :: .'ii!: .-: ..-: -:'?:"?"~"-q' ... :.:' i :";.; .[ i , ' ' i i ".- ,'2';.. · · When ~e F~e~l Communi~fions Commi~ion (FCC) issued i~ ~echni~l and cu~omer se~ice standards, it adopted regulations ~ich require all ~le television ope~tom to es=blish a process for resolving questions or complain= cuscomem may have about billing for semites provided, ~e qual~ of television sisals delivered or o~er semites ~ provide, and to no~ custome~ of ~ose pmcedu~s. We ~ dedi~ted co providing qualiw semite to our customem and ~ ~sure ~ac ~ problem is ~oived to ~e cu~mer's ~d~on. These cu~mer semite procedu~, in addition co many o~er issue, are co. red in material gene~ily provided co you in your welcome ~: This i~o~a~on summ~zes some of ~e procedures ~at you need to ~ow to help us ~er ques~ons and ~olve complain= you may have about billing, ~e quali~ of the television si~s or o~er semites we provide. For ~ose of our cus~mem receiving semite ~mugh comme~i~ accoun=, bulk m:e a~gemen= multiple dwelling owne~, or similar a~ngemen=, some of ~e policies, procedures ~d semites heroin m~ noc app,. Ple=e r~er ~o ~e te~s and condi~ons of documen= ~e~ng such separate a~ngemen=. ~em such document ~ inconsi~ent wi~ ~e ~iicies, procedures and info~adon relating ~o semite set fo~ heroin, ~e te~ and conditions of such separate ~ngemen= shall apply. Po~ic~s ~nd The follo~n~ policies ~d pm~c~, se~ fo~ below. ~m used when pmvidin~ you ~ble tel~ision ~d s~ic,.~. ~y chnn~e ~,m ~nd ~11 no~ you if ~ occu~.~e will con~inu, ~o r,vi~ our policies ~d p~ces ~ pa~ of our commi~en~ ~o con~nunlly mvi,w ~d improve ~e qunli~ of s,~ices w, provide. W, will send you n ~i~,n. ,I,~nic. or o~,r nppmprinz, no~c~ info~in~ you of ~ny ch~n~es ~nd effe~ve da~. If ~u con~nue ~o receive se~ice ~er ~e ~e~ve date of ~e change, we will consider ~is your accep~ce of ~e change. I. D~nitions ~ used in ~ese Polities ~d Pm~ce~ "We~' "Comp~y~' "u~" or "ou~' means your local ~ble company, i~ employees or i~ au~orized agent. "You~' or '~ou~' means ~e cu~omer identified on ~e work order ~at ~ si~ed to begin your cable semite. "Home" m~ns ~e place ~u live, including a single-~ily home, ~a~en~ o~er residence or any o~er ~pe of ~lling uni~ whe~ your se~ice is ins~lled. "HouHy ~ice ch~" means ~e houHy cha~e you pay us for ce~in se~ices.~e hou~ se~ice cha~e is ~iculated using ~e ~les ~d m~la~ons of ~e Federal Communi~ons Commission (FCC). k is designed to recover ~e cos~ of se~icing, in~lling and mainlining customer equipmen: "In.led" me~s e~er ins~lled or ac~vated. "Inside ~" or "Inside wiring" means ~e cable ~at runs inside your home to a point 12 inches ou~ide your home, ~d includes ~ o~, spli~e~, connections, fi~n~ or ~11 plat~ a~ched to i~ "Equipment' means one or more of ~e followinD ~ble modem, mceive~ mceiver-d~cmmbler, remote tonal uni~ secu~ d~ice, addres~le consol module,~B s~ch, co~l ~ble ("~le") which is inside wi~ng, pamn~l Ion-out d~ice or any o~er d~ice installed in or around your home, or provided us, neces~ or convenient for ~u ~o receive cable ~ pm~mming or o~er semites ~m us. Inside wi~ng is not equipmen: "Se~ce" me~s ~e ~ble ~ ping--ming or any other semite we provide to you. 2. Payment For Semite We pm~de se~ice ~ you on a mon~-t~mon~ b~is. Cha~ for se~ice s~ wi~in 24 hou~ a~er semite is in~il~. The charg~ for one mon~'s semite, any deposit, and any ins~lla~on or equipment-Ieee fees, am pa~ble when se~ice is in.lied. A~er ~a~ we will bill you each mon~ in ad--ce for se~ce (~cept for Pay-Per-Vi~ movi~ or even~, which ~e billed after ~ey am pro~ded). The bills you receive will show ~e ~ml amount due and ~e p~ent due date. You a~ee to pay us II 12 monthly, in full, by the payment due date for that service and for any other charges due us, including any administrative late fee(s) and related fees, charges and assessments due co late payments or nonpayments, and any returned check fees, plus other separate and additional charges as described on the next page. If we do not receive your payment by the due date stated on the bill, you may be charged such fees; charges and assessments, plus the other separate and additional charges. The administrative late and related fee(s), charges and assessments related to late payment and nonpayment are intended to be reasonable advance estimates of costs resulting from late payments or nonpayments. We will tell you the amount of these fees and other separate or additional charges at or before you subscribe to and receive our services, prior to the time we implement or assess new ones, and in our annual mailings to you thereafter. You may avoid these fees and other separate or additional charges relating to late payment and nonpayment by making sure that your payment is received by us on or before the due date on the bill. Subject to applicable law, if your payment is not received by the due date on the bill, you agree to voluntarily pay these fees and any other separate and additional charges, fees, and assessments as a condition of receiving our services. We do not anticipate that you will make partial payments or pay your bill late and the administrative late fee(s) and other related charges, fees, and assessments related to late payment and nonpayment are set in advance because it would be difficult to know in advance: (a) whether or not you will pay your bill on time, (b) if you do pay late, when you will actually pay your bill, and (c) what costs we will incur because of your late payment or nonpayment. We do not extend credit to our customers and the administrative fee(s), related fees, charges and assessments are not interest, a credit service charge or a finance charge. Our late fee practices may be revised to comply with applicable state or local laws rules or regulations. Your cable service may be billed to you together with other services, which you receive, from us or our affiliated companies. Payment of any such bill for multiple services is due in full on the indicated payment due date. Subject to applicable law, any failure to pay such bill in its entirety after the date due may result in administrative or late fees and/or disconnection of service with respect to any or ali of the services billed. Any partial payment of a bill will be allocated by us among and between such services at our discretion subject only to applicable law. If you change the services you receive, we may charge you a change of service fee such as upgrade or downgrade charge. The amount of such fee may vary by office location. If you have any questions, please contact your local cable company identified on your bill, in your monthly billing mailings, or ask the representative you talk to when requesting a change in service. A listing is also provided to our customers annually in a mailing or bill stuffer. You agree to pay all taxes, franchise fees, and other charges, if any, which are now or may in the future be assessed because you receive our service. If your service is disconnected because you do not pay your bill by the due date, we may require you to pay ali past-due charges, an installation fee, and a minimum of one month's advance charges before we reconnect your service. If there are any billing errors or other requests for credit, you must bring those to our attention, within 90 days of the time you receive the bill for which you are seeking correction. If we are required to use a Collection agency or attorney to collect money that you owe us or to assert any other right which we may have against you, you agree to pay the reasonable costs of collection or other action. These costs might include, but are not limited to,'the costs of a collection agency, reasonable attorney's fees and court costs. Payments received from you will be deemed to be voluntarily paid. 3. Company Changes in Service and Charges Subject to applicable law, we have the right to change our service and equipment, and our prices or fees, at any rime. We also may rearrange, delete, add to or otherwise change the service provided on our service. If the change affects you, we will provide you notice of the change and its effective date. The notice may be . provided on your monthly bill, as a bill insert, in a newspaper or by other permitted communication. If you continue to receive service after the effective date of the change, we will consider this your acceptance of the change. To the extent required by law, after notice to you of a retiering of our services or price increase, you may obtain changes in service tiers at no additional charge. Otherwise, changes by you of the services you receive may result in upgrade, downgrade, or change of service charges. Please refer to the Price List we have supplied you for details or call your local cable office if you have questions. You may obtain information about our current fees and prices for any of our services by calling your local cable office. The office phone number is on your monthly bill or is provided otherwise in your monthly billing mailing. A list of charges is also provided to our customers annually in a mailing or bill stuffer. 4.Termination of Service You may not assign or Transfer the service without our written consent. The individual policies and practices in this document will continue and apply to your rights and chose of the Company after the end of your service. ~ VolunTary Termination Unless you. have otherwise agreed (such as where you have agreed in advance to receive service over a specified period of Time), you have the right to cancel your service for any reason at any Time by giving us notice. We will refund any balance due to you approximately thirty (30) days of the later of (i) your notice to us of the discontinuance of service or (ii) the return of any Equipment you may have. B. InvolunTary Termination/EffecT on other AT&T Services Subject to applicable law, if you fail to pay your bill when it is due or fail to comply with any term contained in chis document, we have the right to terminate your cable service or any other service included within your bill. The individual policies and practices in this document will conTinue and apply to your rights and those of the Company after the end of your cable service. 5. Equipment Except for the Inside Wiring which we consider your property regardless of who installed ir, the Equipment installed by us belongs to us or otb er third parties, unless you have purchased it. We may, at our option, supply new or reconditioned Equipment to you. You must have our prior written consent to sell or give away our Equipment and our Equipment may only be used in your home. If you cease to be our customer, you are responsible for returning the Equipment to us or our designee. If you move, do not leave the Equipment in your vacant home or with anyone else. The Equipment must be returned to us or one of our representatives in working order, normal wear and tear excepted, or else you will be charged the retail price for a new replacement and other charges for each piece of Equipment not returned. Unreturned receivers will be charged to ~he customer as set forth in the Price Us: You are responsible for preventing the loss of, or damage to, the Equipment within your home. We suggest that the Equipment in your possession be covered by your homeowners, renters, or other insurance. You will be directly responsible for repair, replacement and other costs, damages, fees and charges if you do not return to us Equipment in an undamaged condition. ' If you have us repair or mainTain the Inside Wiring, we will charge you additionally, by the hour, for that service. We are not responsible for problems with the operation of your television or television-related Equipment. We do not service television receivers or any ocher television-related Equipment (such as VCR's, home antennas, or other cable-compatible Equipment) not owned by us, even if it is attached to the cable or Equipment. None of the Equipment supplied by us, nor any of our cable placed outside your home or property in connection with the installation of the Equipment and service shall be deemed fixtures, or in any way part of your real property, unless you purchase our cable to the extent permitted by law when service ends. The Equipment supplied by us may be removed by us, at our option, at any time during or following the termination of your service due to nonpayment for service, and you agree to allow us access to your home for such purposes. We consider Inside Wiring to be your property, regardless of who may have installed it. You will continue to be responsible for the repair and maintenance of the Inside Wire. You may install Inside Wiring, such as additional cable wiring and outlets. Regardless of who does the work, the internal wiring within your home must not interfere with the normal operations of your local cable syste.rn. Inside Wire maintenance may not be your responsibility if you rent your home. Contact your landlord or building manager to determine responsibility. 6. Access to Customers' Homes You authorize us or our designees to enter into your home, in your or your representative's presence, or upon your property during normal business hours or by appointment` to install, inspect, maintain, replace, 13 remove or otherwise deal with the service and equipment supplied by us. This authorization includes allowing us or such designee to be on your property outside your home at reasonable ames even if you are not at home. You authorize us or our designee to make connections and perform other casks which are necessary or desirable to enable us co provide service to you or others, including connecting and making necessary attachments to your inside wiring. If you are not the owner of your home, you agree to supply us or our designee, if we ask you to, with the owner's name and address, proof that you may give us access on the owner's behalf and, if needed, consent from the owner of the home. 7. Private Viewing of Unauthorized Service and Use of Equipment We provide service to you for your private home viewing use and enjoyment-You agree that the pro- gramming provided over the cable system will not be viewed in areas open to the public. The programming may not be rebroadcast, transmitted or performed, nor may admission be charged for its viewing without first obtaining written consent, in advance, from us and our programming supplier(s).This consent may be withheld at the sole discretion of either of us. · We do not have the right to distribute Pay-Per-View programming to commercial establishments. You may not order or request Pay-Per-View programming for receiplL exhibition or taping in a commercial establishment-You may neither exhibit nor assist in the exhibition of Pay-Per-View programming in a commercial establishment unless explicit~/authorized to do so. in advance, by us and our program provider. You may not move your receiver to another location or use it at any time at an address other than your home or location where service was installed by us without our prior written authorization, if you fail to abide by this restriction, you will be held liable for any claims made against you or your cable company on account of any unauthorized commercial exhibition. You agree not to attach any unauthorized device to our equipment. If you make any unauthorized connection or modification to the equipment or any other part of tile cable TV system, you will be in breach of these policies and practices, and we may terminate your service. Much of the equipment and many of the devices necessary to receive our services are available both from us and others. If you purchase or lease such equipment from us, you are responsible for assuring that it does not interfere with the normal operations of your local cable system and other, communications systems and devices. For example, you agree not to install anything, to intercept or receive, or to assist in intercepting or receiving, or which is capable of intercepting or receiving, any service offered over a cable system, unless specifically authorized to do so by us. You are responsible .to pay for all services received or otherwise provided to your household. You also agree that you will not attach anything to the inside wire or equipment, whether installed by you or us, which singly or together results in a degradation of the cable system's signal quality or strength. You may not attach any device or equipment to your inside wiring in a way that impairs the integrity of the local cable system, such as creating signal leakage, which may cause a violation of government regulat/ons, or attaching devices or equipment, which alone or together, results in a degradation of signal quality. Further, services or signals provided by us which are carried on or. transmi:ted through the inside wire or equipment provided by us may not be commingled with signals or services provided by others. We can recover damages from you for tampering with any of the equipment, or any other part of the cable system, or for receiving unauthorized service. You must return any receiver we supply to you which is c~wned by us or others when you are no longer a customer. In some cases, )~ou may also choose to buy a receiver from an independent store. Please remember, however, that receivers with descrambling capabilities should only be obtained from us. In fact, should you see advertisements for cable receivers that have descramblers in them (so-called "pirate boxes" or "black boxes"), you should understand that these devices may be illegal to sell or use, unless authorized by us. Because of the need to protect our scrambled services, we will not authorize the use of any receiver/descramblers not provided by us. People who use illegal receivers/descramblers may be stealing cable service. This practice may unfairly result in increased prices to our honest customers. 8. Limited 30-DayWarranty and Limitation of Liability EXCEPT AS EXPUCITLY 5ET FORTH IN THE TERMS AND CONDITIONS OF SPECIFIC SERVICES WE PROVIDE TO YOU. WE WARRANT FOR A PERIOD OF 30 DAYS FROM THE DATE OF OUR INSTALLATION OR REPAIR THAT OUR SERVICE AND THE EQUIPMENTWE HAVE INSTALLED OR REPAIRED WILL MEET ACCEPTED INDUSTRY 5TANIDARDS AND BE FREE FROM DEFECTS IN MATERIALS ORWORKMANSHIR IFYOU REPORTANY FAILURETO CONFORPI TO THIS WARRANTY TO US WITHIN THAT 30-DAY PERIOD, WE WILL REPERFORP! THE NOIqCONFORPIING SERVICES AND REPAIR OR REPLACETHE NONCONFORMING EQUIPMENT. SUCH REPERFORMAtqCE OFWORK OR REPAIR OR REPLACEMENT OF NONCONFORMING EQUIPMENT SHALL CONSTITUTE OUR ENTIRE LIABIUTY AND YOUR !- i. ' :~. .. !. 't · .. ii;.:¢' :::-'~ ~[":-', .:: ~.' !i " ..ir ii :: ':' i ..~ . 14 :' :' SOLE REMEDY UNDER THIS WARRAN'T'Y, WHETHER CLAIMS OR REMEDIES ARE SOUGHT IN CONTRACT OR TORT .:., . (INCLUDING,WITHOUT UMITATION, NEGLIGENCE STRICT LIABILITY, OR OTHERWISE). .. '... '"-: '..:i...;. :. :..!::.; !:;;!.i~:i:~:; IN NO EVENT SHALL OUR EMPLOYEES OR AGENTS HAVEANY UABILITY FOR SPECIAL INDIRECT, INCIDENTAL OR : ..' '::' :"-'::.:::!!!.:!!!!:!~ii~!il. '. CONSEQUENTIAL DAMAGES RESULTING FROM OUR PROVISION OR FAILURE TO PROVIDE ANY EQUIPMENT OR ...... ':' ": ";.",;.:!~i!,i~!!~.: ' SERVICESTO YOU, OR FROM ANY FAULT, FAILURE DEFICIENCY OR DEFECT IN SERVICE LABOR, MATERIALS, WORK ..... ti :: "~i THE FOREGOING WARRANTIES ARE EXCLUSIVE AND IN LIEU OFALL OTHER WARRANTIES, WHETHER WRITTEN ',. . - '. _ :~:i .... OR IMPLIED, IN FACT OR IN LAW..WETO THE EXTENT PERMITTED BY APPLICABLE LAW, DISCLAIM ANY AND ALL ,. :' . .: ':-;';::!~;;:::i, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. " · . ;-:~':'" 9. Applicable I.aw ...-. :.=: . ..... These policies and practices, including all mn~cers relatin§ to their validly, construction, performance, and ~ enforcement, am governed by applicable federal law, the rules and regulations of the FCC, and applicable, laws, '!.:.'! ' regulations or appiic~le ordinances for the state and local areas where service is provided. These policies ..... "i::' :']i and p~ctices are subjec~ to amendment, modification or termination if required by such regulations or law. If any provision in these policies and practices is declared to be iile~'al or in conflic~ with any law or :'" ..-. ~':": regulation, that provision may be deleted or modified, without affecting the validity of the other policies and practices. . I 0. Notice :, Except as provided in par~r-aph 3 above or otherwise perTni~ced by law, if we send you notice, it will be ¥. considered given when deposicecl in the U.S. mail, addressed to you at your I~st-known address, or hand delivered to you or to your home. We may provide elec:ronic or telephone notice co you, which shall be- deemed given when left with you. If you give notice to us, it will be deemed given when received by us. '"" ! I. Changes to Policies and Practices ,: .: we wi, noti you of changes to these po,c es and p ces. Any changes proposed by you wi, only be "~' ".~: · effective when accepted in writing by one of our senior officers, within their sole discretion. ! ' ' ;':"iiiii:t:ii;.' 12. Procedure for Resoi¥ing Customer Complaints About Signal (~u~lity i. ? .;.. If you have any complaint reDarding the quality of the television signals we deliver, you should contac: us by ~.: .:.:... -."",':' ': phone or in writing to inform us. :: t~i::... We will prompdy try co resolve the problem. If you am dissatisfied with our resolution of the complaint, ': . you may notify the responsible official for your community. Please refer to your cable bill for the agency's name and address. Signal Quality And Customer Service Policies/Complaint Procedures · Our business office is open weekda)}s, except holidays, for customer visits and telephone calls. Our telephone number is pHnted on your monthly bill. · When you call about a service problem during normal business hours, a Customer Service Representative (CSR) will at:empt to determine the nature of the problem. If possible, the CSR will help you resolve the problem over the telephone.. If the problem cannot be resolved during the call, the CSR will schedule a Service Technician to visit your home, usually within 24 hours of the rime of the call. If our workload permits, the Service Technician will be dispatched the sam.e day. :' .: :.: :.. · We maintain a local, toll-free telephone access line which will be available to you 24 hours a day, seven days ;' a week, every day of the year. [*If you call about a service problem outside of regular business hours, the call may be answered by an answerin~ service or answering machine. The service or machine will record your name, number and nature of the problem. Please leave both your home and work telephone numbers. , .;:!:;;;..-.,--::.:: We will call you during normal business hours the next working day to resolve the matter. When possible, a .. · ;:'.i'.::;]".]::!'i?::~.,.: .. Service Technician will be dispatched promptly to fix the problem. In ali other cases, the answering service or machine will forward the information to our office.] · Emergencies that affect signal quality such as fallen utility poles, violent storms or very cold weather may ' ' ' ' "}il::': !?''r~'~Li interfere with reception of cable service. We are co~i~ed to have one of our crews promptly correct: · :. outages or other service-related problems occurring ~ a result of an emergene7 situation. We pledge a · ,:~ ..':,:-: · · prompt response at any time if a I~u'ge area of the system is experiencing technical difficulties. · "-'.::~,:,::.-~ · Our CSRs and Service Technicians are well-t~ined and have authority to a~empt to resolve a customer's 'i'~':;: :' problem, including replacement of any non-operating equipment, in order to provide quality service. · We offer an "~opoin~nent window" for ins~llation, service calls, or other installation activities which are · at a m~ximum, a four-hour time block during norrr~l business hours. :~.:...'~:;: ..:;.,~::~: · We commit to a policy to not cancel our ~opointment with you after the close of business in the business -:i '.? ..=-.? .. · · ,'..'. .- ::=... day prior to a scheduled appointment. If we are running late for an appointrnenr~ we will attempt to contact you and will, as necessary, attempt to reschedule to a time which is convenient for you. · We will maintain complaint records for at least four years. In addition, those records will be available for inspection by the franchise authority or the FCC. Billing Policies/Complaint Procedures · Your monthly cable bill or monthly billing mailing not only gives you a listing of your charges, payment and credits; it may also contain special messages, such as those regarding service or race changes. Please take the time to read the monthly messages and to review your bill carefully to make sure your name and address are correct. You will generally be billed at the same time each month. · We provide service to you on a month-to-month basis. Charges for service start within 24 hours after service is installed. The charges for one month's service, any deposits, and any installation or equipment- lease fees, are payable when service is installed. After that, we will bill you' each month in advance for service (except for Pay-Per-View movies or events, which are generally billed after they are provided to you). · The bills you receive will show the total amount due and the payment due date. You agree to pay us monthly by ~e payment due dace for that service and for any other charges due us, including any administrative lace fee(s) and related fees, charges and assessments due to late payments or nonpayments, any returned check fees, and other separate and additional fees. Please refer to Paragraph two above for additional information. · If you change the services you receive, we may charge you a change of service fee such as upgrade er downgrade charges. The amount of such fee may vary by office location. If you have any questions, please contact your local AT&T Broadband cable office identified on your bill or ask the representative you talk to when requesting a change in service. A listing of such charges is also provided to you annually in a mailing or bill stuffer. · You agree to pay all taxes, franchise fees, and other charges, if any, which are now or may in the future be assessed on the services you receive from us. · Subject to applicable law, your service may be disconnected if you do not pay your bill by the due date, and we may require you to pay all past-due charges, an installation fee, and a minimum of one month's advance charges before we reconnect your service. Further, if you do not reconnect, any rental equipment must be returned to us. A handling fee may be charged for returned checks. · To the extent required by law, after notice to you of a retiering of our services or price increase, you may obtain changes in service ~iers at no additional charge. Otherwise, changes by you of the services you receive may result in upgrade, downgrade, or change of service charges. Please refer to the Products and Services Price List we have supplied you for details or call your local cable office if you have questions. · If there are any billing errors or other requests for credit, you must bring those to our attention within six months of the time you receive the bill for which you are seeking correction. · The bills you receive may reflec~ charges for cable service and other services which you receive from us or our affiliated companies. Payment of any such bill for multiple services is due in full on the indicated payment due date. Subject to applicable law, any failure to pay such a bill in its entirety when due may result in administrative or late fees and/or disconnection of service with respect to any or all of the services billed. Any partial payment of a bill for more than one service will be allocated by us among and between such services at our discretion subject to applicable law. · If we are required to use. a collection agency or attorney to collect money that you owe us or to assert any other right which we may have against you, subject to applicable law, you agree to pay the reasonable costs of collection or other action. These costs might include, but are not limited to, the costs of a collection agency, reasonable attorney's fees and court costs. · Payments received from you will be deemed to be voluntarily paid. · If you are unable to get a problem resolved to your satisfaction at the local level, you may write or call the AT&T Broadband Corporate Offices with concerns and complaints. AT&T Broadband 188 Inverness Df. West Englewood, CO 80112 In addition, if you are unsatisfied with our handling of your complaint, you may contact the local franchising authority. Not all serv/ces are available in all areas. Please call your Iocal AT& T Broadband office for details. :. ~ -~ o ~ ~ ~ a~ ~ ~ ...... ........-. ; .,.; -. ~ ~ ~ ~ ~ : :... : ..... ., . : . , .:- ... .:. ~ ~ ~ .',: ::::- · ..... 0~ ~ zzz 0o~ . ~-~ ~> - ~o~u~>~o 9~n ~00~ ~ '~>00 =50 ... SUBSC PRIVACY' .. As a subscriber to cable service from entitled under Section 63I Act of 1984 (the "Cable ,4ct'~:i.. upon cable operators personally identifiable personally' subscriber information, the period during which. subscribers concerning such used in this notice 'MT&T, ,.:.:. :.' ....~..,~:~ terms refer to AT& controlled by or under This law relates only to personalty l also applies only to informationt.hat.~' certain information that is transmitted Some of our services, now or in the direct communications outsidei of ~' law does not apply to infor',~.~, tiOh in directed outside of..°u~"syS~q.~:.! - . online .,. . ·: ' .. ..... Q 222 SM6OOO-Regul. Priv. Revised 9/00 COII ECI30N & USE To continue providing reliable and high quality service to you, we keep regular business records that contain the following types of personally identifiable information: your name, service address, billing address (if different), telephone numbers, social security number, credit information, drivels license number and subscriber'.cbrrespondence.'Our records include information on billing, payment, damage and security deposits, maintenance and repairs, how many television sets are in your home, the service options you have chosen, the pay- per-view movies and events you have ordered, your PC coafiguration (for cable services which include Interact access) aid the number and location of conveners, cable, modems or other cable equipment installed in. your home. We maintain records of research concerning subscriber satisfaction and viewing habits, which are obtained from subscriber interviews and questionnaires. In addition, we may combine personally identifiable subscriber information, which we collect as part of our regular business records with personally identifiable information obtained from third parties for the purpose of creating an enhanced personal database to use in marketing and other activities. Additionally, if you rent your home, we may have a record of whether landlord permission was required. prior to installing our cable facilities as well as your landlord's name and address. When you use interactive television and cable Interact services, whether such services are provided through your personal computer or our advanCed set-top box, the cable system automatically collects information on your use of such services, including information on the choices that a subscriber makes along the range of services offered, including the programs and Web sites you view or services you order on the cable system or on the Interact, the time that you actually use the services or view the programs and web sites, and other information about your "electronic browsing." Information concerning the use of other features of the cable system are also collected, such as which menus and menu screens are used most often, the time spent using them and the use of the remote control feature. Without your written or..electronic consent, we cannot collect personal information over the cable .system unless it is necessary to provide cable or other service you have requested or to prevent unauthorized access to services or to subscriber data. We collect information contained in cable interactive television and cable Internet service-transmissions directed to AT&T because it is necessary to provide a service you have requested. Our detailed business records are used (and personal information contained in them disclosed) generally to help ensure you are being properly billed for the services you receive, to send you pertinent information regarding your cabIe services and other products and services which we may make available from time to time; and to improve the quality of the services we provide, and for all tax and accounting purposes. Specifically, the information in these records is used to sell, install, maintain, connect, reconnect and disconnect services; to bill and collect service-related charges; to measure subscriber satisfaction and improve marketing and programming decisions; to mail related materials; to ensure compliance with relevant law and contractual provisions; to provide you with information about our products and services or new products and services which we may make available 'from time to time: and to answer questions from subscribers. Information collected about cable online, services including interactive television and cable Internet services is used to understand subscriber reactions to gateways and services we offer to evaluate the network. It helps us to customize the interactive television and cable laternet services based on the interests of subscribers,, and helps us to be more selective in the types of commercial communications we address to you. It also helps us to protect our network from unauthorized use and to track any unauthorized access to services or to subscriber data. We take all reasonable precautions to prevent unauthorized access to this information DISCLOSURE AT&T considers the information contained in the business records we keep to be confidential. Unless prior written or electronic consent is obtained, personal information which we maintain related to our subscribers may be disclosed to a third party only if: (1) it is necessarY~to render or conduct a le~timate business activity related to the cable and other services we provide; (2) such disclosure is required by court order and you are notified of such order; or (3) for mailing lists as described below. The Cable Act requires us to inform 'you of the nature, frequency and purpose of any disclosure, which may be made of such information, including an identification of the types of persons to whom the disclosure may be made. In the course of providing our cable.and other services and in informing you about new products and services which we may make available from time to time, we may make your records available to our affiliated AT&T entities, employees, agents and contractors in order to install, market, provide and audit service'on each occasion that access to the information is needed. We may also occasionally release our subscriber list to consumer and market .research organizations, .software vendors, and merchants or advertisers offering services to you over our interactive television and cable 2 Intemet access services. Access for these purposes are routine and does not occur with any specific frequency. Further, we make our subscriber records available each month or as needed to one or more independent billing houses for billing purposes; to mailing services and prognmmers each month for pro~marn guide distribution; to programmers and' outside auditors when required; to attorneys and accountants on a continuous basis to render service to the company; to potential purchasers in connection with a system sale which occurs only at the time such sale is completed; to franchising authorities to demonstrate compliance, whenever such concerns are raised; to collection services if required to collect past due bills at such time as bills are submitted for collection; to law. enforcement when required to prevent network damage'or the unauthorized recepti°n of service; to the.United States Postal Service, when required, in connection with mailing. The Cable Act also provides that a governmental entity may obtain disclosure of personally identifiable information by court order if it offers evidence that such records are material to a criminal case, and if you are given the opportunity to appear and contest the evidence. In addition, when you use interactive television and cable Interact services, certain information relating to your use of these services may be disclosed to third parties providing content or services on the interactive television platform. Such disclosure may. include, without limitation, information on the choices that you make along the range of services offered, including the programs and websites you view or services you order on the cable system, or on the Interact, the time that you actually use the services or view the programs and web sites, and other information about your "electronic browsing". In the event you are a customer of AT&T Broadband's Road Runner cable Intemet service, you have expressly.granted permission to AT&T to disclose, without prior notice to you, a record or information pertaining to your account (not including the contents of your communications) including the name and address associated with a ~ven IP address or e-mail account in response to: (a) a subpoena issued in a civil or criminal investigation or litigation;' (b) a civil investigative demand issued by a government entity; (c) a court order; (d) a law enforcement agency request based on emergency conditions such as an imminent threat to life and limb or substantial damage or destruction of property. Examples of such emergency situations would include bomb threats; kidnappings, extortion threats, identifying the service 'address of a suicidal party, and threats to critical governmental or private sector computer systems and data bases. DIGITAL MILI, M COPYRIGHT ACT One of the purposes ~f the Digital Millennium Copyright Act CDMCA"), si~ed into law in 1998, is to provide certainty for copyright owners and Iatemet 'service providers with respect to copyright infringement liability online.. The law is applicable to all AT&T online services, including AT&T@Home, AT&T Road Runner and interactive television service. In order to assist copyri~t holders in protecting their copyrights from online infringement, the DMCA provides for the issuance of a subpoena seeking the identification of au alleged online copyright infringer. Upon receipt of such a subpoena, an online service provider such as AT&T, is required by law to expeditiously disclose the identity of the alleged infringer to the copyright owner or a person authorized to act on the copyri~t owners behalf. 0F tT&? ROAD llU & AT&T l}ll tt 19, ONE SER ICE. In areas where the AT&T@Home cable Intemet service is available, and for those customers subscribing to this other cable programming service, please refer to your AT&T@Home Subscriber Agreement for additional information relating to the AT&T@Home cable Intemet service, the Intemet or other services to which access is provided as part of the AT&T@Home cable Iatemet service. Ia areas where AT&T provides local telephone service using the.facilitiePof its cable system, AT&T shall employ the same privacy protections as it does when providing lo6al telephone service through other telephone technologies, such as fixed wireless telephony, digital loop carder technology or through the use of the facilities of the incumbent local exchange carder. 4 Unless you object, the Cable Act allows us to disclose certain information to others, including advertisers and direct mail or telemarketers, for non-cable related purposes including selling or disclosing customer lists to commercial or charitable users thereof. Disclosure for such purpose is limited to your name, address, and the particular services to which you subscribe, but cannot include the extent of your viewing or use of a particular service or the nature of any transaction made over the cable system. WE INTEND TO PROVIDE YOUR NAME AND ADDRESS TO THIRD PARTIES AND PROVIDE YOU AN OPPOKrUN1TY TO ASK US'NOT TO DO SO. DISCLOSURE MAY BE AS OFTEN AS REQUESTED BY THIRD PAKIIES. ff you wish to remove your name from such lists and disclosures, you must write AT&T Broadband at the address identified on your monthly bill, or in your monthly billing mailings, asking us to remove your name from such lists. To enable us to process your request, .you must include your name, address, phone number and account number. We will remove your name from the lists and disclosures as soon as we practicably can in the coarse of normal business practices. Or you may simply use the tear off"Limitation of Disclosure" form attached. Fill it out and mail as indicated above. ON. . The.Cable Act requires us to inform you concerning the period during whiCh we will retain information. As required by the Cable Act, we destroy customer information that is no longer necessary for the purpose fro; which it is collected unless there is a legitimate request or order to inspect the information still outstanding. The information that you have provided us upon installation of service is maintained in our management information system and billing systems, and is updated as new information is added. Accounting and billing records are retained for ten years for tax and accounting purposes or until the relevant income tax years for which the document was created has been closed for income tax purposes and/or all appeals have been exhausted... Routine paper records necessary to render, or conduct legitimate business activities related to ~e cable service or other service provided you as a customer are kept in accordance with our voluntarily adopted dOCument retention pm.gram. Paper records such as'work orders and records of technical maintenance and service yOU are provided are retained for'three years. Subject to applicable law~ records relating to involuntary disconnects are kept indefinitely by us to facilitate collection and evaluation of credit worthiness and are updated as new information is added. 5 CUSTOmeR RIGHTS. As described above, the Cable Act establishes your ri~ts as a customer and the limits upon the cable operator with respect to the collection and disclosure of customer information. You have the right to inspect our records that contain information about you and to correct any error in our information. If you wish to inspect .the records at our system office pertaining to you, please contact us at the system business office between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday (Holidays excluded), to. set up an appointment. You may. bring a private civil action in U.S. District Court and you may seek to recover damages, costs and attorney fees if your ri~ts under Section 631 of the Cable Act have been violated. THE NAME, ADDRESS AND PHONE NL.rMM~ OF YOUR LOCAL CABTJR SYSTEM CONTINUES TO BE ID~NI'Ik'~ b:D ON THE FACE OF YOUR MONTHLY BILL. ANY CHANGES TO SUCH INFORMATION WILL BE NOTED ON YOUR FUTURE BILLS. (AT&T Broadband Road Runner End-User A~reement Privacy Notice effective 51(52000 Rev 02) 6 r m mm ~ mmmmmmm! m mmmmmmmmmmmmmmmmmmmmmmmm i I · I I I I I I i I ! i I I I I ,Name: LIMITATION OF DISCLOSURE Please remove me from mailing lists and other disclosures of my name and address for non-cable purposes. Phone #: Date: I I I ! I ! I I ! I I I I i I I I i I I I I I I I I I I I I I t Address: Account #: print all information completely and accurately. Thank you.) (To ensure we are able to process your request; please fill in and ~ ! Tustin ~ "B" S~ · Turin, C~ 92780 I (888) 255-5789 ~ R~T~ 24 Hou~A ~ KRCA (6).) IND Otm:to~ Li~ Anirrd Pla~ Home & Garden Tele4sion $CI..R Clgnnei ESI~ Classic The Tra~l Channel Gd~si6n The Hislory Channel QVC GEPI$ Teledsion 86 HBO Family 95 Sundance Channd BGame Show Network ~7 Independent Film ESPN Classic Sports Trio iN DEMAND ESPN :Z aSPN~ ~..~V',e,, ~,,~,,'m~ FOX Spots Wodd CNNsi iN DEMAND P~-P~V'mw Omdoor Ufa Out'door Channel SCI-FI Channel Disco'm? C~'lJz~on Qmml Showcase I Turner Cla.~c Movies DiscoveryVVln~s Channet Showcase II Bravo NewswoHd Inmmadonal OH~ns TV Land Inmr'rmioaal C~nae~ New P, eleases style :~_' Te~emundo Imernacional World Bea: The Hism~ Channe~ ~ CNN en Esp~ol Body & Soul Sundance Channel ~ P,&B Hks Independem Film C?annel ~ VHUno Dance Encore VVesmrns Wes'c HBO Comedy Enc~ W~!Wes~ HBO Zo~ So~ Rock 80's MTV 2 STAR2~ The~er 70's VHI Classit Pock STARZ~ ~ Tod~s Country VHI Counm/ STARZ~ VHI Soul Encor~ West Classic County Much Music MoreMAX ~ and ~d~rd~ No. in Shoo.imm I ~ Classic~ I M~i~ic~ L~in~ I Ch~on The Movie Ch~nel I Goodllfe TV Network iN DEMAND I~y-Pe~View Tmpic~ I Irtspirat~:mai Life Information Mexic~m Trint~ Bn3adc~s'c Network ~ iN DEMAND PapPer-View Tajano Hist.7 ~ : iN DEHANDs~ P'dy..Per. View HovJes and Events :!3 .' ' ': · :'- . ':.'."':'.' . i'- .:: '..."'""'' .-.: '. '.- · .~""'"~- : ...... Tustin 644 "B" Street · Tustin, CA 92780 · I (888) 255-5789 MONTHLY SERVICE PRICES Basic I (Off air networks) __ .$ 9.22 Basic 2 (Largest variety of cable network) ..... 27.27 ~ 3 (ESPN CI~c,~TNT &WGN) S~l~d ~ (Includes Bade I, B~Jc 2, Basic 3, Receiv~ & Remo~ ConsoL Discoum included in paclc~e.) m~43.92 Nex~ P~ck (Comedy Cena~l. E! ~ncer~inmencTelevi$ion. The Golf Ch~nneLThe Hismr? Channel & SCI-FI Channel) _ - * ~99 S~t~rd Cable ~ Nex~ P~_ck (Includes Sl~ndard C~ble & Nex~ P~ck. Discount included in packaje.)_ ~ -46.91 Receiver, each (na~-Basic onl,/) ~4.46 Basic Only Receiver, each .... ._..2.36 Remoca Con~ eJ:h, , ---0.37 Next Guide (InmnmJive pro&q~m ~uide. Price v-~ries by service level) ....... 1.00 - 4.15 Addtdor~i Ouder. es. ch TV Guide ........... ...._.3.59 HBO, HBO Plus & HBO Si~q~mre (co~d~er) __.12.99 Premium Service. e~ch (Cinemax, Show~ime or The Movie Channel) __ I 1.99 STAi~ a Enco~ O:o~,,dm') 11.99 Sund~nce Channel & Independ~ Film Channel (m~her) ..I 1.99 Cable Plus (includes HBO. HBO Plus. HBO Signature. STAR~ & Encore)_--17.9S C~ble Se~e~ (Includes C.~ble Plus & Cinemax) -~0.95 Cable Prefer~d (Includes Cal:~e Setecr~ Showcime &The Movie Channel) ..... -.27.95 Cable Ulcr~ (Includes C~ble Pre,-ecL Sundance Channel, Independem Film Channel & HBO F~mily) __.34.95 P~i~r-Vtew __Varies by e~nc FCC Re~u~cory F~e 0.0~ IN~i'AI.LATION AND HISCELLANEOUS PRICES Unwtr~l Instil _ 44.09 Unwtred Instil (Under~ound) ...... 44.09 Non--Scand~rd Imali~ion/Cus~om Wirin~ (Based o~ hourly se~ce ch~,e and m~mrJais). _V~es Prewtred trisoll ---26.24 Addi~onal Oude~-At Inil~l Instil _14.16 Addkional Oude~- Separ-~eTrtp .... 20.99 A/B Switch Ins~l~ion -Ac ~ Instil ..... 6~9 A/B Switch Ins~il~cion - Separ~mTrip 13.64 A/B Swish Purchase._. ~14.95 Relocate Oudec VCR Connec~on -Ac Inidai Instil ...... $.29 VCR Connection - Sel~r'~e Trip _ 13.64 Installation of Cus~mer Owned Equipment - Sep~mmTrip ....... 24.00 Service Call (Non-~bie r~la~d) .24.00 Ul~r~de Optional Services - Sepr~m Trip .... _~_ 16.79 Down~q-~de Ol~ion~ Services - Separate Trip .10.49 Box Pickup ...... ~ I S.74 Hourly Service Char~ W~lfish ........... ._.._.~.00 Up/Down~ade of Addressable Services __209 Se~ice/Equipmen~ Deposit ~. _~._S0.00 Unrecumed/D~m~/Lo~ Recover .250.00 Unr~un~l:~YL~ Remote Comzol .... 25.00 Unr~umed Receiver Cord__. ~ ........... 9-0.00 t Unr~mmed/D-~mao-,ed/Losc Dl~l Rec~ver.~, ~00.00 Unr~cum~ Di~l Remote Con~rol ...... ?S.00 L~e P~ymem .. -4.7S Home Collec~on. 10.00 Billin~ S~cemem Copy (Pe~ cop),) _.ZOO Prices eff~cz~ Sepmmber 2001 .. · . : . · .:. ; .i. '.'~'~?~.',o~ ",~':,~'~'Z':"-"'" ~,,; ,:.,:t,,.!~p. :-<,1 ,.:;,.-? ?~ .'.'~h?. 4'i: ~:.~:'~',~,~:,?i~:~;~.~ ~.,;::~ <C:'J' -~ ~" ~" '~ ~h"fp-.~?.'~'~'~? ~)~, ~'%'Z'~ '~ ,~; ':~Z~ 6~"B" S~et · Tusfin, CA 92780 * I (888) 255-5789 DIGIT~ SE~CES D~ S~ __ , ~7.~ I ~ ~ G~e I~ ~ m 38 ~ ~ iN D~ ~, ~ ~ & ~ ~L ~ ~ S~ & ~ W~I m~ ~ ~ ~s9.~ ~1 ~ ~ &~ceof I ~~. Di~ GoM -$74.~ oi~ ~ --~'~ ~ (9 ~ ~) .... S I0.~ I~T~ D~ ~ D~ en ~T~o I~ ~N ~ ~ ~ de ~ ~ ~U~ ~ ~dd ~ & HBO, HBO ~u~ HBO ~ HBO ~. HBO ~, HBO ~ & HBO ~._~1:~ ~ Mm~A~ &~di~ ~ I I.~ ~ ~ (~).. __. ~.~S IN DEM~D~ ~~ ~ & S~ ~ ..... ~" ~ ~ BONUS CATEGO~ES M~ & M~ .... ~'~ /~T~n DI~. NI~ ~ a ~ G~aW N~TH~ ~ N~e H~ N~ I~ U~ ~ & D~c~ H~ & ~ INSTALLATION & MISCELLANEOUS PRICES Unv~red Install ,44.09 Non-Standard InmJ¼f~onlCusmm W'~ir~ (b~s~ an hourtf s~ ~ ami rmmr~ls) Pmwimd Im~ll , A~lkloml Outer -Al Initial InstalL_ ----14.15 A~lidoml Ou~J~t - S~l~ra~e Tr~ ~_[0.~ NJ S~ la~ - ~ I~ I~1 ....... ----"~)~ NB S~ ~- ----19.~ V~ ~ -~ ~ I~ ~ ~13.~ ~e ~1 (~ ~) -- -16.~ D~e O~ S~ - ~m Tdp 15.74 ~ ~P .... 2939 H~ ~ ~ ,, . _~.~ ~~ ~t._. _~o.~ Un~~ ~ Un~ R~ Co~_. _~.~ R~ ~ 4.75 ~U~g Smut ~ (~ ~) .... . ..... : . . Aili~Broadband Congratuladonsl~ Now that your receiver is installed, you'll be able to access a variety of entertainment This checklist will be used to make sure you get the most out of our service. Please keep this informatJon as a reference. Remote Control Programming [] Your remote has been programmed with the TV and VCR codes below. If your remote should lose the programming, I, Press the TV or VCR button on the remote. 2_ Hold the SETUP 'button until the red li~t blinks twice. 3. Enter in the ~ DIGIT COD~ for yourTV orVCR on the remote. [] I provided informc~on tfl~ induded how to program the remote and the remote programming codes. ~/eicome Pac{< Materials In addil~on to this checklist, your Welcome Pack includes the following material~ [] Customer Handbook [] Channel line-Up Card [] Price Ust [] On-Screen Program Guide [] Subscriber Privacy Notice [] iN DEMAND~ Pay-Per-View Coupons Features/]Benefits The following features may be available through your receiven [] Favorite Channel Selection [] Event RecordingTimer [] Interactive Guide [] Program Information Pop-Ups* n Viewing Pro,rams By Category* [] Set Reminder* Psr~_ntal Con,roi [] The rece/ver can be set to b/ack undes~rab/e channeLs thrt~Yn the use of Parental Control. Parental Control Code [] The Digru31 rece/ver can be set :0 m_~c: orden'ng of Pay4~r-V/ew programs. *Purchase Code Ordering I) AT&T Di~it~ Cable Receivers [] Digital Impulse* I. Select ~e MENU on the nemote. 2. Select the PPV~ bytime or title~ 3. Highlight. the event and press OK on ~he remote. 2) AT&T Cable Receivers [] Call 1-800-885-(Channel number twice) t.o order and your account will be authorized for the event. [] Analog Impulse I. 5elect ~he Pay-Per-View channel ~nd press PFV on the remote control. 2_ ~ter ~e Pay-Per-View PIN to purchase. Your PPV PIN Number is yourPINconbed~nged~you~m~eaer'son-s~eenmentt Please call Customer Service ar. 1-888-255-5789 if you have any quest/ans in regard to your Pay-Per-View order. 'Music Channels* [] You can access the music channels by pressing the MUSIC bu~.on on the remote or by press/ng the MENU button and then select/ng MUSIC. Channel 999* [] Tune to Channel 999 for more AT&T' Distal Cable serv/ce. .On~ avala~e'wiO~ Di~,.d receive:. Services may ~t ~ ~ ~ aa ~ I di~ed all a~licable items on ~is ~i~ ~ ~e cu~omer Fie~ R~sen~ Te~ Number ~te C~omer's Signo~m Dote Accent Nu~ D~ Time ~one Num~ (Op~o~l) Electronically: · ~stablish a $implePay account. For more information, please review the $implePay brochure in your hand book or call 1-888-255-$789. Check or Ploney Order: PleaSe detach the payment stub and include it with your .payment_The check or money order should be made payable to AT&T Broadband and include your AT&T Broadband account number on the front_ · Mail a check or money order in the envelope included with your bill so that AT&T Broadband receives your payment by the date printed on the front of the statement. -Make sure the mailing address shows through the payment envelope window. - Please do not mail cash. -Allow six days for mail delivery. -Please do not include any written requests with your payment. Instead, send those in a separate letter. Please include your name and AT&T Broadband account number wi~ your written requests. · Bring your payment to an AT&T I~roadband retail location by the date printed on the front of the statement. Cash: · Bring your cash payment with your payment stub to the nearest AT&T Broadband retail location by the date printed on the front of your statement. Credit Card: · To. pay by credit card, call 1-888-25S-5789 or stop by any of the AT&T Broadband retail locations. Checking Your AccoUnt Balance: · To get account balance information, call 1-888-255-5789 and use our automated service or to si~eak with an AT&T Broadband representative. --'- AT&T Broadband 8101 P7S441 Please call us with any questions about your cable television entertainment service. Customer Service 1-888-2SS-5789 Repair (24-hours) 1-888-25S-S789 We offer an "appointment window" for installation service calls which are at a maximum, between a four hour time lock. In Southern California, there are 17 retail locations and listed below are the offices nearest you. For additional locations, please call Customer Service. Corona · 425 S. Corona Mall, Co'rona, CA 91719 Monday - Friday 9:00am - 6:00pm Saturday I 0:00am - 2:00pm Costa Mesa · 200 Paularino Ave., Costa Mesa, CA 92626 Monday - Friday 8:30am - 7:00prn Saturday 8:30am - 5:30pm Tustin · 644 B Streer. Tustin, CA 92780 Monday - Friday 9:00am - 6:00pm Saturday I 0:00am - 2:00pm Our Service is Guaranteedt. '~ We realize that your time is valuable and we will make every attempt to arrive within the scheduled time frame for all customer appointments. As a sign of our commitment to be on time, we will apply a $20 credit to your account if we fail to meet our obligation. If you're dissatisfied with any aspect of AT&T Broadband within 30 days of purchase, we'll refund your money. The 30-day money-back guarantee does not apply to equipment charges, installation charges, iN DEMAND Pay-Per-View purchases or related franchise fees or 1:axes. Payment Mailing Address: AT&T Broadband P.O. Box 78904 Phoenix, AZ 85062-8904 nd AT&T Broadba !. MY ACCOUNT NUMBER ( Canyon Lake, C0mn~ Costa Fle~ El Cenit0, The Farm/South Rivenide RB, H0meland/R0m01and (~enide C0untT), .. H0nethief Canyon (Rivenide County), Oty of Lake Ekin0~, Henifee, Hunieta, flunieta Hot Sp~ng~ iivenide County, Tusdn ... -': ..... ~ "-' ~ :~ ~: .~" .'." ..~.?.' .~ ;:'i .......... :..~::~:.:,.~ .i' i .;.....: i i',"'i:i: :.:i -'::'i:!:'i! i. '.~.:i :~ (".~"i'" i': . ii :. ' iI' ..... ':' "'-~' · ' -'" ?"- ": ' . ii.:..:":;-" "..":.-~.' :'' :"'~/-:i i'~-~i':~'"ii:''' "!:":':~"~!~'~':'/' .... · i-:'.. ':~. '."' :; '.:i;'- '-. ' ' .'; '?::'-i:" ' ·" ACCOUNT SUMMARY IMPORTANT VIEV~ER NEWS O. Sample only IgN 9002 gO ~ (X) O~ 97041S ~ 4. 2g~o xxxx~x~oGoo~xx SERVICE & USE PAYMENTS ~ II'AYI'~ENT. THANK You MONTHLY CHARGES ~ (M/13.S/12 ~ 2 FCC: REGULATORY i (1~) 2SS-$789 Listed below, in numeric order, are the descrip- tions of each billing section. Read through each section, using the corresponding numbers, to become familiar with our new look. OYour AT&T Broadband system address location. OThe customer's name and billing address. O The customer's account number and billing date. - O"How to reach us" includes your'sYStem phone number and office hours. OThe address where the customer is receiving service. O This section summarizes account information including payment due date. section contain impomant affecting news This ~11 the customer's service, channel line-up or programming. OThe payment coupon should be returned along with payment for services. OThis area indicates the previous payment date and amount paid. This area itemizes the date and description of monthly service charge[ area itemizes the description This date applicable ~xes and fees. This is the back of the that will be payment coupon returned along with payment. · Call the Customer Service phone number listed on the front of this brochure. [] Listen to the instructions · Speak to a sales representative · Speak to a repair representative · Speak to a billing representative l,..., ..,,-: .:;,: ~.,:,, ;.:.. ..... ' ..... -- .... ~.~. ,:,,....-'..~ :.,..:.;,.....' , '. ~,~: #~. ~ .~..(,....i Use the automated services for: · receiving your account balance and billing information · receiving information about service status · confirming an appointment · receiving general information · hearin~ these options a~ain C~. V~y is my cable service billed in aciv-dnce; A. Wi~h your cable service, you pay for your curtain billing period at the beginning of fl~t periocL It's just like when you pay rent or masazine subscriptions in advance. Q. What is a prorate or partial month? A. A pardi month service is a service charge or credit for a period of time less than one month. For exampi~ if your regular billing cycle is from the i st to the 30th of the month, and you change your service on the 15th of the month, you will see a partial month service charge ~om the I Sth co the 3(hh. Q. 1~/hat is a franchise fee? A. A franchise fee is paid byAT&T Broadband direcdy to the city or county in which you live for use of public rights of way and the right co operate a cable television system. ~. VYhat is the Federal Communications Commission Regulatory Fee~ , A. This is a charge provided for in the Federal Communical:Jons Commission rules used to fund federal government regulation. ~, V~hen is my bill due? A, The due dam is ac the bottom of your bill. Be Sure thac your payment reaches us by the clue date. If your bill is lace~ ptease bring it into one of the office addresses listed on the front of this brochure. ~. What is a late charge? ~ A la~e cha~ may be incurred if your payment is hoc ~eived by the due date. ~. Why is my ~ment not ~e~ on my ~ bill? ~ IF a pa~ent ~ ~ved afl:er ~ pm~ your n~ mo~'s bill it ~ not sinew on your cu~ s~a~ent. b~ ~ ~pesr on the ~l~ng mo~'s atemenr. Q. What are Cable Basic I Services! A. Cable I~sic I services consist of local broadcast chan- neL~ plus community access and educational channet~ q. V~hat: are Cable Basic 2 Services? ~L Cable Basic 2 services offer the largest selection of cable networks to include the most popular movie, si>ors.' music and informative channeL~ q. ~ am Cable Basic 3 Services? A. Cable Basic 3 services comprise broadcast s~cions from' throughout the U.[ q. ~Nhat are Next Pack Services.t A. Next Pack services offer an addifionaJ tier of popular movie, spor~ and informat~e channel~ Q. May I purchase Cable Basic Service only? A. Cable Basic Service may be purchased on a s~.~-aione basi~ (~.. What are Premium Services? A. Premium services such as HBO, SHOWTIMF, ~T'A~.~, ENCORE and CINEMAX, offer a wide varie~/ of entertainment from blockbuster films to exclusive originals,' special family entertainment, sports and series. They can be added to your AT&T Cable Service for an additional charge. What additional services are available? For information regarding remote control units, addkional outlets, VCR hook-ups, The TV Guide and monthly progr~rnming magszin~ call the customer serv- ice number shown on the front of this brochur~ Q. How can ! make changes to my service? ~ If you have an addressable receiver, any changes to your service can be arranged by calling us.A nominal fee may be charged for making changes. Qe If you do not have an addressable receiver, please call us so we can arrange to have a Service Technician come out to your home. A Change of Service Trip Charge will apply. Select a program Select a movie or special event from your on-screen guide or Pay-Per-View preview channel available in most areas. Listings are also available in the AT&T Broadband edition of TV Guide. Place your order From you home phone, call the coil free phone number that corresponds co the channel your selection is playing on. You can call within 30 minutes before the scheduled start time. Enjoy the show Ac the scheduled start time, tune co the channel your feature is playing on and enjoy the show! You must have an addressable receiver to order Pay Per View programming. Your account balance must be current and your correct home phone number must be listed on your account. Your account will be billed automatically for each feature ordered. Most special events are assigned a unique ordering phone number. You can order these events in advance of the show dace by calling the toll free ordering number assigned to that event. Programming subject to change without notice, and may not be available in all areas. Troubleshooting tips: At the start time, if your selection is not appearing you may have tuned in too early. Simply turn your receiver off and then back on. For rotary telephones, questions or parental control options, call our customer service Receivers One of the reasons you subscribe to AT&T Broadband is because we offer many channels of programming that you cannot receive otherwise. Some of you may have TV receivers and VCRs that can tune to all the unscrambled channels we provide and may only need a converter box to receive certain scrambled channels. Others may have older sets that do not tune to all the cable chan- nels. In this case, you may need to obtain a set-top receiver box from AT&T Broadband, for a nominal monthly charge, or from an authorized retail vendor in order to receive all available unscrambled channels. Even if you have a TV or VCR chat was advertised as being able to receive all cable channels, some of you may still need a receiver. This is because prior to October 3 i, 1994, there were no standards governing the reception of cable channels. Therefore, yourTV orVCR may not tune to all standard channels AT&T Broadband provides. According to new government rules, any TV orVCR sold in the U.S. after October 3 I, 1994, cannot be called "cable ready" unless it complies with the new requirements, including the ability to properly tune cable channels. However, it is possible that some newer'i'Vs andVCFLs are still unable to tune ali cable channels without some interference and may require the use of a receiver. Regardless of your TVs capabilities, AT&T Broadband scrambles certain channels and you will need a receiver with a built-in descrambler should you wish to receive these channels. A set top receiver will automatically "con- vert" the cable channels to a single specified channel on your TV. Please understand that the process of converting ali of our channels to that single channel means you will .only receive one channel at a time through the receiver. Therefore, you may not be able to use certain features of yourTV orVCR that depend on channel tuning of these devices. For instance, the special feature of your TV or VCR that would otherwise allow you to tape one program while watching another, record two or more consecutive programs that appear on different channels, or allow the use of picture-in-picture may not be possible without additional equipment. Should you wish to use some of the fea- tures noted above,AT&T Broadband will pro- vide you with supplemental equipment. This equipment might include an additional receiv- er, or, if you have a receiver that can tune all . . ~ · ~ -, I . I ..... -'11 enable you to bypass the receiver and tune to all unscrambled channels with your TV or VCIL Please contact us regarding your needs and we will be happy to give you a schedule of charges for any such equipment. In addition, you may purchase bypass switches and additional receivers at retail .outlets. Please remember, however, that receivers with descrambling capability can only be obtained from AT&T Broadband. In fac:, should you see advertisements for cable receivers that have descrarnblers in them, (so called "pirate boxes" or "black boxes") you should understand that these devices are illegal to sell or to use, unless authorized by AT&T Broadband~ Because of the need to-proteCt out scrambled servic-. es, AT&T Broadband will not authorize the use of any receivers/descramblers not pro- vided by our system. People who use illegal converters/descramblers are actually steal- ing cable service and this practice unfairly results in increased prices to our honest subscribers. Moreover, people who are caught selling or using the illegal devices may face criminal charges. Remote Controls The receivers used by AT&T Broadband can be operated by a hand-held remote con- trol device. We provide a remote control device for a nominal charge. It is possible that the remote control that ca_me with your TV or VCR is. also capable of controlling our receiver. In that case, feel free to use it. Alternatively, you may .buy a "universal" remote control device capable of Working. with our receivers. Here is a list of some compatible universal remote control devices: Sole Control model $C-300, Universal Electronics models URC-2060 and URC- 2086, Tandy Corporation models 15-1910, 15-1908, and 15-1907, RCA models RCU300 and RCU400, Sony model RM- VI 0A, GE model GEU400, and Magnavox model MA650.This list is not exhaustive and you can probably find others as well. If you do, please let us know and we will update our list. Universal remotes are available for purchase from many appliance and electron- its stores. We hope this information has been useful. If you have any questions, please do not hes- This notice is to inform you of the options available to you regarding the cable wiring located in the interior space of your dwelling unit, Home wiring is that cable which runs from your TV set to a point approximately twelve inches out- side your dwelling unit. Home wiring includes all the wiring inside your home, including extra outlets, as well as split- rets, connections, in-home amplifiers, timings or wall plates attached to the wire. It does not include receivers, descramblers, A/B switches, parental lockout devices, security devices or other terminal equipment. In a building with multiple dwelling units, home wiring includes the cable wiring in the interior space of each separate un.i~ AT&T Broadband installs high-quality coaxial cable and other home wiring materials to ensure the. strongest and clearest signal for you and your neigh- bors. This wiring plays an integral role in the quality of picture and service. Cable wiring must be of the highest quality in order to avoid signal leakage and to maintain the clear picture you are accus- tomed in accordance with regulations of the Federal Communications Commission (FCC), all cable customers are given the opportunity to acquire the cable wiring inside their dwelling unit when th_ey ter- minate service. In addition, AT&T Broadband allows its customers to rearrange, remove, replace, or maintain cable wiring inside their homes prior to termination of service. Upon request, AT&T Broadband will rearrange, remove, replace or maintain cable home wiring at the applicable hourly service charge plus a charge for materials. Alternatively, customers may select a qualified third-party contractor or perform the service themselves as long as their actions do not interfere with AT&T Broadband's ability to meet the FCC's technical standards or to pro- vide service to other customers. It is verY important that the highest-quality cable home wiring materials are used and installed properly to avoid signal leakage and maintain signal quality. Customers who elect to rearrange, replace or main- cain their own wiring may obtain high- quality materials from AT&T Broadband slightly above cost if cable home wiring which is not installed by AT&T Broadband results in harmful or improper signal leakage, or the need for a technician to visit your home for service, AT&T Broadband may hold the customers responsible for recti- fying the problem. Further, AT&T Broadband is required by the FCC rules to terminate service to any location where signal leakage problems are not corrected. AT&T Broadband makes every effort to provide our customers with the best service possible. However, if you have a complaint regarding any aspect of our cable television service, we urge you to submit your complaint in writing to: Attn: Customer Assismmce Group AT&T Broadband 900 N. Cahuensa Blvd. Los Angeles, CA 90038 You may also call during normal business hours. In addition, emergency personnel are available to accept calls 24 hours a day. Notification should be made as soon as possible after a complaint arises.We are committed co resolv- ing customer complaints promptly. If you have an unresolved complaint` and believe you have not received an adequate response from AT&T Broadband, you may direct you.r .concerns..to the City of Santa Clarita The City of Santa Clarita 23920Valenda Boulevard, Suite 300 Santa Ciari~ CA 91355 City of Los Angeles (Tujunga) Department of Telecommunications 120 S. San Pedro Street, Suite 600 Los Angeles, CA 90012 ......... (213) 485-275 i TDOY ...................... (213) 485-5034 County of Los Angeles (Santa Clarita) County of Los Angeles Department of Consumer Affairs Cable Television Franchising B-96 Kenneth Hahn Hall of Administration 500 West Temple Street APPENDIX D FEDERAL COURT RULING ON AT&T REQUIREMENT FOR BINDING ARBITRATION Los Angeles Times: Court Bars AT&T Plan on Dispute Resolution Page 1 of 1 htt~://www, latimes.com/business/la-OOOOO4555_ian 18.Stow?coll=la%2Dheadlines°A2Dbusiness CALIFORNIA [ I IIIIII II Court Bars AT&T Plan on Dispute Resolution From the Washington Post January 18 2002 A federal court in California has struck down AT&T Corp.'s 5-month-old requirement that consumers refer all disputes to arbitration, saying the company was illegally trying to limit its liability by restricting a consumer's right to. sue. U.S. Magistrate Judge Bernard Zimmerman said AT&T was "disingenuous" in arguing that its mandatory-arbitration provision was designed to give consumers a broad range of options to resolve disputes. "I find AT&Ts principal purpose was to put sufficient obstacles in the path of litigants to effectively deter many claims from being pursued," Zimmerman said in a ruling made public Wednesday. The ruling was issued by the U.S. District Court for the Northern District of California and applies to 7 million AT&T customers in California. Arbitration experts said Wednesday that the decision could have broad implications for consumers and companies across the country, as mandatory-arbitration provisions have been adopted in recent years by a growing number of tirrm, including banks, retailers, computer makers and health maintenance organizations. Arbitration experts said Zimmerman's ruling was significant, partly because it upholds arbitration in general. At the same time, "it provides additional guidance to businesses that want to include arbitration provisions in their contracts with consumers," said Washington lawyer Eric Mogilnicki. AT&T said Wednesday that it planned to appeal Zimmerman's ruling. If you want other stories on this topic, search the Archives at latimes, com/archives. For information about reprinting this article, go to www. lats. com/rights. http://www.latimes.com/templates/misc/printstory.jsp?slug=la%2D000004555jan 18 01/18/2002 APPENDIX E AT&T BROADBAND TELEPHONE RESPONSE TIMES 1999, 2000 AND THE FIRST HALF OF 2001 CITY OF TUSTIN CABLE TELEVISION FRANCHISE FEE AUDIT AT&T BROADBAND February 2002 TELECOMMUNICATIONS MANAGEMENT CORP 5757 Wilshim Blvd. · Suite 635 Los Angeles, CA 90036 (323) 931-2600 Fax (323) 931-7355 CITY OF TUSTIN CABLE TELEVISION FRANCHISE FEE AUDIT AT&T BROADBAND February 2002 C:\TustinUReports~Au dit~ca-2002 (att).doc TABLE OF CONTENTS I. INTRODUCTION ........................................................................................... 1 A. Scope ................................................................................................ 1 B. Background ....................................................................................... 1 II. REVENUE COMPONENTS .......................................................................... 4 III. REPORTED REVENUES AND FRANCHISE FEES PAID .......................... 6 A. Franchise Fee Payment Requirements ............................................. 6 B. Revenue Components ...................................................................... 6 C. Franchise Fee Computation .............................................................. 10 IV. AUDIT ISSUES ........................................................................................... 14 A. Excluded Revenue Items .................................................................. 14 Vo B. Exclusion of Advertising Commissions from Gross Revenues ........... 15 CONCLUSIONS ........................................................................................... 19 APPENDICES A REVENUE COMPONENTS INCLUDED AND EXCLUDED B REPORTED GROSS REVENUES AND FRANCHISE FEES PAID C SERVICES AND RATES 1997-2000 D SAMPLE SUBSCRIBER BILLS E AT&T RESPONSE TO TMC QUESTIONS I. INTRODUCTION A. Scope The City of Tustin (the City) is provided with cable television service by two cable operators that serve different areas of the City. One of the two operators, AT&T Broadband (AT&T), is the successor in interest to MediaOne of Los Angeles, Inc. (MediaOne), which holds a franchise granted by the City. The AT&T franchise expires on July 6, 2002. The City retained Telecommunications Management Corp. ('FMC) to review certain aspects of AT&T's cable system operations. One of TMC's tasks 'is to conduct an audit of the franchise fees that have been paid to the City by MediaOne and AT&T. This report provides the results of TMC's audit. The scope of the audit included: A review of the cable operator's method of computation of franchise fees, and the components of revenues taken into account, or excluded, in the computation, and whether the operator was in accordance with the franchise requirements. A review of the reported revenues and license fees paid for the audit period, including the calendar years 1997, 1998, 1999, 2000 and the first half of 2001. A determination of whether all fees required by the franchise have been computed correctly, and the correct fees have been paid. In the event of any underpayment, recommendations for appropriate City action. B. Background The City, through Ordinance No. 905, adopted on March 19, 1984, granted a cable television franchise to Communicom of Tustin. The franchise was transferred to American Cablesystems of California, Inc. on July 6, 1987 by Resolution No. 87-79. American Cablesystems was merged into Continental Cablevision, also in 1987. The City approved the merger and concurrently modified the cable franchise through Ordinance No. 1002. Subsequently, Continental Cablevision was acquired by U,S. West and renamed MediaOne. In 2000, AT&T Broadband acquired MediaOne and, as a result, became the City's cable operator. With respect to the payment of franchise fees, Ordinance No. 1002, in Section 8, provides the following: "8. Franchise Fees. For the use of the City streets and for the purposes of providing revenue with which to defray the cost of regulation out of issuance of the Franchise and promoting, assisting and financing Community Use Programming and other cable services of a public character, Franchisee shall pay franchise fees to the City of Tustin in the amount of five percent (5%)of Gross Revenues .... " "Said franchise fees shall be paid quarterly not later than June 1, September 1, December 1 and March 1 for the preceding three (3) month period ending, respectively, March 31, June 30, September 30 and December 31. Not later than March 1, the Franchisee shall file with the City Clerk of the City of Tustin an annual audit report by a Certified Public Accountant, approved by the City, of the operations of Franchisee which identifies in detail the sources and amounts of all Gross Revenues received by the Franchisee from all sources, both inside and outside the City. On the date of payment other than March 1, Franchisee shall file an unaudited report which identifies all Gross Revenues during the period for which payment is made." "Gross Revenues" are defined in Section 7, as follows: "7. Definition of Gross Revenues. "Gross Revenues" shall mean all cash, credits, property of any kind or nature or other consideration derived directly or indirectly by the Franchisee, its affiliates, subsidiaries, and any other person or entity in which Franchisee has a financial interest or which has a financial interest in Franchisee, arising from or attributable to the operation of the cable television system in the City of Tustin, as its corporate city limits now and/or hereafter may be constituted, including, but not limited to: A. Revenue from the subscriber network and institutional network (including Leased Access fees); B. Advertising revenues; C. Revenue from the use of studio facilities, production equipment and personnel; D. Revenue from installation, connection and reinstatement and the provision of subscriber and other services; E. The sale, exchange or cablecast of any programming developed for Community Use or institutional users; F. Interconnection revenues. "Gross Revenues" shall nOt include: A. Any taxes on services furnished by the .Franchisee which are imposed directly upon any subscriber or user by' the United States, State of California or local agency and collected by the Franchisee on behalf of the 'government. B. Revenue received directly from the Franchisee by an affiliate, subsidiary or parent of the Franchisee or any other person or entity in which the Franchisee has a financial interest or which has a financial interest in the Franchisee, when the revenue received has already been included and reported as Gross Revenues received by the Franchisee." In summary, the cable operator is required to pay to the City 5% of all revenues, excluding any taxes imposed directly on subscribers by the Federal or State governments or a "local agency." It should be noted that the franchise fee itself has been ruled not to be a local tax. In a 1997 decision, the United States Court of Appeals ruled that: The term "gross revenues" in a cable franchise agreement means all revenues received, with no deductions. The franchise fee was not a tax, but rental compensation for the use of the public rights-of-way. II. REVENUE COMPONENTS In order to identify which revenue components might have been excluded from reported gross revenues, a check sheet, Figure 1, was sent to AT&T. Appendix A contains AT&T's response. As may be noted, four items were listed as not included in gross revenues: · PEG Access Support · Bad Debt Recovery · Launch Fees · Promotional Fees. Comments on these items, and other audit issues, are provided in Sections III and IV. FIGURE 1 CABLE FRANCHISE REVENUE CABLE OPERATOR: AT&T Broadband SERVICE AREA: City of Tustin, California REVENUE INCLUDED IN REVENUE COMPONENTS FRANCHISE FEE COMPUTATION YES~ NO (A) Subscriber Revenue (1 ) Basic Service Tier (2) Expanded Basic Tier(s) (3) Digital Tier(s) (4) Premium (5) Pay-per-view (6) Equipment Rental (converter/remote) (7) Equipment Sale (8) Installation (9) Late Charges (10) Franchise Fee (11 ) PEG Access Support' (12) Cable Modem (Internet Access) (13) TV Guide (14) Bad Debt Recovery (15) Other (specify) (B) Non-Subscriber Revenue ' (1 ) Local Advertising (2) Home Shopping (3) Launch Fees (4) Promotional Fees (5) Advertising Inserts for Subscriber Bills (6) In-Kind Services (7) Other (specify) III. REPORTED REVENUES AND FRANCHISE FEES PAID A. Franchise Fee Payment Requirements As indicated in Section I. B above, the franchise fee payments are due June 1, September 1, December 1 and March 1 for the respective preceding calendar quarter. By March 1, the franchise also requires the submission of an "annual audit report by a Certified Public Accountant approved by the City, of the operations of Franchisee which identifies in detail the sources and amounts of all Gross Revenues received by the Franchisee from all sources, both inside and outside the City." It appears that the cable operators, both MediaOne and AT&T have not complied with the requirement for annual CPA audit, although revenue summaries have been provided each quarter. B. Revenue Components Figure 2 indicates the reported revenues and the franchise fees paid to the City for the years 1997 through 2000 and the first six months of 2001. Appendix B contains support data and an itemization of the revenue categories, together with copies of checks indicating the payments made. There are five revenue summary sheets in Appendix B, one for each of the years 1997, 1998, 1999 and 2000 and one for the first six months of 2001. Beginning with the 1997 summary, the revenue component categories include the following: Basic Tier Receipts The Basic Tier is the lowest cost tier of cable service, and must include off-air local television signals and Public, Educational and Governmental (PEG) Access channels. The cable operator may add some other programming to this tier. This is termed "Basic" on the 1997-1999 rate sheets (see Appendix C), and "Basic 1" in 2000. First Cable Programming Services Tier (CPST) This tier includes a group of satellite services, at additional cost. It is called "Expanded" service for 1997-1999, and "Basic 2" in 2000. Second CPST This includes a second group of satellite services at a further additional cost, termed "Satellite" service for 1997-1999, and "Basic 3" for 2000. FIGURE 2 REPORTED GROSS REVENUES AND FRANCHISE FEES PAID (rounded to the nearest dollar) Year Reported Franchise Fees Paid Gross Revenues 1997 3,564,450 178,223 1998 3,682,871 184,144 1999 3,927,973 196,399 2000 3,918,582 195,929 2001' 2,050,246 102,512 * First six months. Premium Service This includes channels paid for separately, such as HBO, Showtime, Cinemax, etc. (Note: The summary sheets for 1997 and 1998 indicate zero revenue for this category. This appears to be an error, with the revenues mixed together with the pay-per-view revenues. For 1999, 2000 and 2001, the premium service revenue is itemized in its proper category.) Pay-Per-View (PPV) Receipts This includes revenue from individual program charges, e.g., a subscriber ordedng a particular movie by telephone or interactive converter. Digital Programming Tier(s) Many cable operators, in recent years, have offered tiers of "digital" programming. A portion of the channel capacity is utilized to transmit digitized programming. This technique increases the total number of channels that can be offered. The summary sheets indicate no revenue from digital programming tiers throughout the audit period. AT&T has indicates that it initiated digital service in Tustin in September 2001, which would be subsequent to the audit pedod. Service on Additional Outlets This includes charges for equipment service and maintenance, and usually generates little revenue. Cable Modem service This includes revenues from providing high-speed Internet access service to subscribers with home computers. As can be noted, no revenue is indicated throughout the audit period, and the rate cards do not list this service. AT&T has indicated that this' service was introduced, in Tustin in June 2000, and also that cable modem revenues were not included in gross franchise fees for the second half of 2000. These'revenues were approximately $36,000. For the first half of 2001, receipts for cable modem service were included within the total basic service receipts with franchise fees paid. Mr. Del Heintz of AT&T has indicated that AT&T would be remitting a check to the City shortly for the franchise fees due in 2000 for cable modem service, including interest. Equipment Fees This category includes monthly charges for converters and remote controls. Lost/Stolen Converter Equipment This category includes money recovered from subscribers for lost or stolen equipment. This is usually a negligible amount. Installation This includes revenue from installation charges. Miscellaneous Revenues This includes the categories of "Activation Fees," "Service Call Revenues," "NB Switch Installation," "Service Change Charges," "Account Transfer Charges," "Collection/Disconnect Fees," "Reconnect Fees" and "VVire Maintenance Charges." As can be seen, no revenue is indicated for any of these categories. Late Fees This revenue represents charges to subscribers who are late in their bill payment.. Cable Guide Charge This is revenue from those subscribers who receive the Cable Guide magazine. Commercial or "Bulk" Accounts This is revenue from subscribers in multiple-dwelling units, hotels/motels and businesses. Franchise Fees Collected from Customers MediaOne did not itemize franchise fees separately, and AT&T, in Tustin, has continued this practice (refer to sample customer bills in Appendix D). Thus, franchise fees are included within basic services revenues. Commercial Leased Access Receipts This revenue would normally be derived from leasing a channel to an outside entity. No income is indicated in this category. Home Shopping Income When a cable subscriber purchases an item from a home shopping channel, a commission (usually 5% of the sale price) is paid by the shopping channel to the cable operator. Leasing of Cablecasting Facilities or Equipment This would include charges for utilization of any cablecasting facilities that the cable operator might maintain. No revenue is shown for this item. Advertising Receipts Two sources of advertising revenue are shown, local/regional ("Ad Sales") and national ("Ad Link"). These are discussed further in this report. Income from Selling Mailinq/Telephone Lists No revenue is shown for this category. Revenue from Programmers This would include revenue paid by programmers for cable system carriage, such as launch fees or promotional fees. No revenue is show for the audit period. Bad Debt This category lists payments due from subscribers but not received. These are subtracted from the revenue total. Omitting the categories for which no revenue is indicated, the remaining categories, shown in bold on the summaries in Appendix B, include the following: Basic Tier CPST Tier(s) Premium Service Pay-per-View Equipment Service and Maintenance Installation Late Fees Other Income Cable Guide Charges Commercial/Bulk Accounts Home Shopping Advertising Bad Debt. C. Franchise Fee Computation As Appendix B indicates, the revenue components are totaled for each month individually, and then the three month totals are added to produce the quarterly total, from which the franchise fees due are computed and paid at a rate of 5% of the revenue totals. The computations appear to be generally consistent with the franchise, requirements. A few items require discussion, however. 10 (1) Inclusion of Franchise Fee Revenue Some cable operators itemize franchise fees separately on subscriber bills. A number of operators in this group, based upon an erroneous Federal Communications Commission ruling in 1995, did not include these revenues within gross revenues, and consequently did not pay franchise fees on this category of revenue. A 1997 U.S. Circuit Court decision invalidated the FCC ruling, and held that "gross revenues" should include all monies collected. In the case of MediaOne, however, the company did not itemize franchise fees separately, but included this charge within the basic service charge. To illustrate this, the revenue summary sheet for 1997, in Item 24, indicates "Franchise fees collected from customers (included in basic revenue)." Appendix C, which lists the cable rates from 1997-2000, and Appendix D, which shows a recent subscriber bill (October 2000), confirm that neither MediaOne nor AT&T itemized franchise fee charges separately. Consequently, the issue raised above is not relevant here. Since franchise fee charges are included within the service charges, they automatically become part of gross revenues, to which the franchise fee applies. However, the monthly/annual summaries in Appendix B appear to be inconsistent. For the years 1997, 1998 and 2000, the summary sheets indicate zero revenue for Item 24. For 1999 and the first six months of 2001, revenue is shown for this item. For 1999, the total shown for the year is $127,585.53, which is 5.27% of Basic Tier Receipts (but only 3.25% of the gross receipts of $3,927,972.55). For the first six months of 2001, Item 24 totaled $11,102.52, which is only 0.54% of the $2,050,246.02 gross receipts. AT&T was requested to explain this discrepancy (see Question 1 in TMC's letter of January 23, 2002, contained in Exhibit E). AT&T's response (also in Appendix E) is that a change in accounting systems during the period February through December 1999 resulted in treating franchise fee receipts differently from both the prior and subsequent periods. The explanation is acceptable. Since franchise fee receipts for the entire audit period were not itemized separately on subscriber bills, and thus not excluded from gross revenues, the variation in accounting treatment did not effect the computation of franchise fees. (2) Digital Programming Tier Revenue The summary sheets of Appendix B indicate no revenues for Item 6, "Digital Programming Tier(s)," except for the month of January 1998, in which $24,447.10 in revenue is shown. AT&T was requested to explain this item (TMC's question and AT&T's response are contained in Appendix E). 11 Here again, AT&T indicates that the treatment of this accounting item was based on the system used at that time, and that the $24,447.10 should be included as part of pay-per-view receipts. The revenues were included within gross revenues and subject to the franchise fee. (3) Calculation of Advertising Revenue The AT&T cable system has two categories of advertising revenue, local/regional and national (termed "Ad Sales" and "Ad Link," respectively). Appendix B illustrates these categories as Items 28 and 29 on the revenue summary sheets. The first category, Ad Sales, represents a share of the revenue generated within the regional cluster of AT&T systems that includes the Tustin system. This advertising is sold directly by AT&T representatives, and a portion of the total revenue is allocated to each cable system in the cluster, based on the ratio of the number subscribers in that system to the total number of subscribers in the cluster. The second category, Ad Link, represents revenue sold through an advertising representative agency, from nationally based advertisers. Again, individual cable systems are allocated a proportion of the total revenues, based upon the ratio of subscribers to the total subscriber base. This method of allocation is commonly used by large cable system operators, and appears to be equitable. However, an issue that arises is whether the advertising revenues are reported on a "gross" basis (i.e., before advertising commissions are allocated to the marketing entities), or on a "net" basis (after marketing commissions have been subtracted). This is particularly relevant, since AT&T is a partial owner of Ad Link, which therefore is an "affiliate." As noted in Section I.B, above, "Gross Revenue" is defined to include "al. JI cash, credits, property of any kind or nature or other considerations derived directly or indirectly by the Franchisee, its affiliates, subsidiaries, and any other person or entity in which Franchises has a financial interest .... "(emphasis added). Based on this definition, the gross revenues should be utilized for the computation of franchise fees. As Appendix E indicates, TMC questioned this item, and AT&T responded that during some of the audit period, net revenues, rather than gross revenues, were used. AT&T states that the difference, which was the commissions paid, amounted to $57,267.05 during the audit period. Assuming this figure is correct, it would mean that 5% of $57,267.05, or $2,863. in franchise fees was underpaid for this item. It also is noted that AT&T has not provided any marketing commission information with respect to direct sale of advertising (item 28 Ad Sales, in the 12 revenue summaries of Appendix B). This is discussed further in Section IV.B. below. 13 IV. AUDIT ISSUES Significant issues that arose during TMC's audit include the following: A. Excluded Revenue Items As Appendix A indicates, four categories, categories of revenue are not included within gross revenues. These include: PEG Access Support Charges · Bad Debt Recovery · Launch Fees · Promotional Fees. These are reviewed below. (1) PEG Access Support Charges Neither the City's cable regulatory ordinance (Article 7, Chapter 4) or the franchise granting ordinance (No. 1002), requires the cable operator to provide to the City any equipment or funding to support Public, Educational or Governmental (PEG) Access. Section 15 of Ordinance No. 1002 provides that if the operator has studio facilities in the area, it shall be made available for PEG Access use, at no charge, but this does not require direct PEG Access support. Consequently, no direct charge is made to Tustin cable customers to recover any PEG Access costs expended by the Cable operator, and therefore no revenue is generated in this category. The revenue summary sheets in Appendix B confirm this. (2) Bad Debt Recovery As the summaries in Appendix B indicate, the operator subtracts bad debt (unpaid customer bills) from gross revenues. This is acceptable, since these funds were not received. If however, some of that bad debt is recovered later, then that revenue should be included within gross revenues. Appendix A indicates that AT&T Broadband does not follow this practice. Appendix B indicates bad debt deductions, as follows: 14 1997 $ 53,893 1998 58,578 1999 40,299 2000 21,137 2001 (flmtsix months) 14,862 Total $188,769 AT&T has not indicated what, if any, recovery of this bad debt has occurred. If a 5% recovery rate is assumed, this would be $9,438 in revenue for the 4.5 year period. The 5% franchise fee on this revenue would amount to about $472. Thus, although TMC believes that recovery of bad debt should be included in gross revenues, the amount of the franchise fees due in this particular case does not appear to be significant. (3) Launch and Promotional Fees "Launch fees" are monies paid to cable operators by programmers launching a new channel to achieve carriage on the operator's cable systems. For example, when Fox launched Fox Sport Network, Fox paid most of the major cable system operators $10 a cable subscriber to carry that channel. "Promotional fees" also are fees paid by programmers to cable operators, but these occur after carriage has begun and are designed to stimulate the operator into an advertising campaign to publicize that channel and attract more viewers (or subscribers). TMC believes that both categories of revenue should be included within gross revenues, since the franchise language does not provide for any such exclusion. Many cable operators differ with this position and take the position that these fees are not revenues, but reimbursements of special marketing expenses incurred by the cable operator. In any event, the issue appears moot in this case. Item 31 on the revenue summaries, "Revenue from Programmers (for carrying programming)" shows no revenue over the entire audit period. B. Exclusion of Advertising Commissions from Gross Revenues Although the method of allocating advertising revenues appears fair, as indicated above, AT&T has, at least for some portion of the audit period, subtracted advertising commissions from the gross revenues. This is inconsistent with the franchise requirements. 15 As Section II1.C.(3) above indicates, with respect to Ad Link sales (the marketing of advertising by a separate agency), commission revenue of $57,267 has been excluded from gross revenues. TMC believes that the exclusion was improper. In addition to Ad Link, local advertising is marketed directly by AT&T representatives, who also receive marketing commissions. TMC believes that gross revenues, rather than those that are net of commissions, are required by the City's franchise to be utilized for the purpose of franchise fee computation. Figure 3 indicates the reported revenue total in the category of Ad Sales (Item 28 in the summaries of Appendix B). Assuming that reported revenues were "net" of commission, and an average commission rate of 15%, Figure 3 estimates the commission amounts and the franchise fees that should have been paid. The results of the first six months of 2001 are annualized. Figure 4 adds the franchise fee underpayments of Ad Link and the estimated Ad Sales underpayments. Interest due on these underpayments is calculated at 9% per year (simple interest) for the average period of time that the underpayments were delinquent, up to an assumed settlement date of March 1, 2002. The delinquent periods shown in Figure 4 were calculated based on the franchise requirement for franchise fee payments by June 1, September 1, December 1 and March 1, respectively, for the preceding calendar quarters. This means that all of the annual fee should be paid by March 1 of the following, year. Assuming that underpayments occurred each quarter, the average delinquent period for each year would be six months. For the year 1997, as an example, up to the assumed settlement date of March 1,2002, the delinquent period would be 4.5 years. As shown, the estimated total due is $14,976. 16 FIGURE 3 AD SALES REVENUES (EXcluding Ad Link) (rounded to the nearest' dollar) Year Reported Estimated Commission Franchise Fee Due Revenues (15%) (5%) 1997 166,177 24,927 1,246 1998 166,532 24,980 1,249 1999 352,601 52,890 2,645 2000 283,058 42,459 2,123 2001' 163,645 24,547 1,227 2001'* 2,455' Total 9,717 * First six months. ** Annualized 17 V. CONCLUSIONS The following conclusions arise from TMC's audit: Except as noted below, MediaOne and (currently) AT&T appear to have calculated and paid franchise fees in accordance with the requirements of the City's franchise. (2) Three issues arose in which the cable operator's practice may be subject to question: (a) Exclusion from gross revenues of advertising commissions paid to an AT&T affiliate. (b) Exclusion of reCOvered bad debt. (c) Exclusion of launch and Promotional fee income from gross revenues. In each of these three cases, TMC believes that a strict interpretation of the franchise language requires inclusion of this revenue within gross revenues. Item (c)is moot, -. however, since the revenue summaries indicate no income from programmers during the audit period. (3) Improper deductions from gross advertising revenue have occurred. AT&T has confirmed the deductions from Ad Link revenue. For Ad Sales revenue, TMC estimates the franchise fee underpayments in Figure 3. (4) As Figure 4 indicates, the total due to the City, including interest to March 1,2002 is $14,976. The City should issue a demand for payment to AT&T. If AT&T disputes the amount due, AT&T should be required to provide appropriate documentation that verifies AT&T's position. (5) Assuming a 5% recovery of bad debt, an additional franchise fee underpayment of about $470 per year may have occurred. T. he City, if it believes this item is significant, should request verification from AT&T of bad debt recovery amounts. (6) AT&T has identified that revenues from cable modem service were not included in gross revenues for the second half of 2000, but have been included for 2001. AT&T also indicated that it would be sending a check to the City for the 2001 unpaid franchise fees plus interest. 19 APPENDIX A REVENUE COMPONENTS INCLUDED AND EXCLUDED FIGURE CABLE FRANCHISE REVENUE i~-~; E' ARE,~..T-~tY;' c~~ C a'lif0rnia ................................ ............... : ....................... - ......................... ~;~;;~;,-~ ~-[,'C G 0,= ~,' ]i,i IENU~',-- COMPONENTS FRANCHISE FEE COMPUTATION Subscriber Revenue ,i'J' 'B a ~ic' S~-r~ ~c~-~e'; ............................. 3) Digital Tier(s) . ~ 4.~'i.P.-ri~i~iu m~.i' '_ '"... 'ii ............... ~i .......... ~ ................. _~,.__ 5) Pay-per-view 16) Equipment Rental (converter/remote) 17) Equipment Sale 18) Installation 19) Late Charges ',10) Franchise Fee ',1 1~) PEG Access Support ',12) Cable Modem (lnternet Access) :'13i '~ Guide 114) Bad Debt Recovery ',15 ) Other (specie) :riber Revenue 1) Local Advertising 2) Home Shopping 3) Launch Fees ',4) Promotional Fees 5) Advedising Inserts for Subscriber Bills 16) In-Kind Services [7) Other (specify) APPENDIX B REPORTED GROSS REVENUES AND FRANCHISE FEES PAID ~8~888~8~88888888~8~88~88~88~8~ .. . ~ ~~ .... ~ ..... ~ ~8~888~8~88888888~8~88~8~88~ ~8888888~8888888888~88~8~888~ ~ ~ '~ ..... ~8~8~888~888888888888~88888~88~ ~8~888~8~88888888~8~88~8~8888 ~8~88888~88888888~8~88~8~888~8 o o . o ~8~8~888~8~88888888~88~88~8~88R~ ~8~888~8~88888888~8~88888~88~ ~88~8~8~8~8888888888~8888~88~8 ~8~8~888~888888888~Z8888~88~ ~8~8~SgS~88888888~R~R88~8~88~8 ............. MedlaOne 550 N. Continental Blvd., Suite 250 El Segundo, California 90245 DATE o5~./97 VENDOR CODE cr1'033 INVOICE NO. DESCRIPTION 5/28/97 FRANCHISE FEE Mm"tlAOI l= FOI=IMEi=ILY CONTIN~I'AI. ~ON GROSS Remittam.;e Advice 42,07g.4g DISCOUNT VENDOR NAME CrTY OF TUb'FIN 42,079.49 271 2832 175 -- -...~.x No. 302859 BALANCE 42,079.49 42,079.49 MediaOne- This is Broadband. This is the way. SS0 N. Continental Blvd. Suite 2S0 El Segundo, CA 90245 PAY Fo~y two t~ouaand aeventy nine and 491100 Dollam To '~e order of CITY OF TUSTIN BUSINE,~ LICENSE DESK 300 CENTENNIAL WAY TUSTIN CA 92780 NO. 302859 ' NORwE~r BANK OHIO. N.A. 412 VAN WEFIT, OH 44~81 CHECK DATE/cHECKAMOUNT0s/29/97ir ,-~-$42,079.49 II'3,0 ~GSCi," I".0~. ], ~O~,G ~L,~: ~tr=OOOOGL, L,~t,' CONTINENTAL CABLEVISION~ WESTERN REGION FRANCHISE FEE CALCULATION FILING asof: 3/31/1997 Filing City: TUSTIN.,FRKNCHISE Formul~ (All Revenue - Bad Debt Expense) * 5% Service Revenue Basic Service Revenue Installation Revenue Converter Rental Revenue Add'l Outlet Revenue Pay TV Revenue Sub Total - Service Revenue Other Revenue LO Revenue Home Shopping Revenue Other Revenue PPV Revenue Misc. Revenue Allocated System Revenue Advertising Revenue Sub Total - Other Revenue Gross Revenue Bad Debt Expense Net Revenue 618,402 15,106 35,120 38 116,825 785,491 1,640 19,837 5,835 44,111 71,422 856,913 15,323 841,590 Franchise Fee (~ 5% 42,079 039TTUSB.X~S. Rnng S~28~7. ~14 AM MedlaOne 550 N. Continental Blvd., Suite 250 "'NDOR CODE :1T033 INVOICE NO. 8~8/~7 · 2ND QTR.'g7 MEDIAOI FORMERLY CONTINENTAL C, ABLEV~ION E! Segundo, California g0245 --,,..,.,......--.,... DESCRIPTION GROOS 45,957.83 45,g57.83 VENDOR NAME CITY OF TUSTIN Remittance Advice DISCOUNT Check No. 317595 BALANCE 45,957.83 45,957.63 ,VlediaOne' This is Broadband. This is the way. $50 N. Continental Blvd. Suite 250 :! Segundo, CA 90245 PAY To the order 3f Forty five thousand nine hundred fifty seven end 831100 Dollars CITY OF TUSTIN BUSINESS LICENSE DESK 300 CENTENNIAL WAY TUSTIN CA 92780 NO. 317595 ,,, NORWE,.~I' BANK OHIO, N.A. 412 VAH WEFIT, OH 4~1 CHECK DATE 08/28/97. II"-'~"~'g'~'~'~ tlCHECK AMOUNT ,"~1,75q5," ,:Ot.l,~'OSRi?~,8: qr-.OOOO&t,~,q,, MEDIA ONE .-- D'ES TERN REGION FRANCHISE FEE CALCULATION FILING as of.' 6/30/1997 Filing City: TUSTIN FRANC~SE Formula: (All Revenue - Bad Debt Expense) * 5% Service Revenue Basic Service Revenue Installation Revenue Converter Rental Revenue Add'l Outlet Revenue Pay TV Revenue Sub Total- Service Revenue Other Revenue LO Revenue Home Shopping Revenue Other Revenue PPV Revenue Misc. Revenue Allocated System Revenue Advertising Revenue Sub Total - Other Revenue Gross Revenue Bad Debt Expense Net Revenue~ 668,825 16,547 34,434 0 112,787 832,593 1,922 25,893 7,535 61,863 97,213 929,806~N~ f~ ~, ~'~: ~'~. 7, 10,653 919,153 Franchise Fee (~ 5% 45,958 0697T'USB.XLS. Filing 8/26/97, 6:05 PM ,, , MedlaOne ~ - Remittance Advice Check No. 550 N. Continental Blvd., Suite 250 El Segundo, California 90245 331427 DA1~- INVOICE NO. DESCRIPTION GROSS DISCOUNT BALANCE - -- 11/24/97 3RD QRT 1 FRANCHISE FEE 45,548.85 45,548.65 , MEi31AO! IE FORMERLY CONTINENTAL CABLEVI$1ON VENDOR CODE VENDOR NAME TUS001 TUSTIN CITY OF 45,546.65 45,546.85 ,, , ! MediaOne' Thi~ i* Broadband. Thi~ i~ ~he way. SS0 N. Continental Blvd. Suite 250 El Segundo. CA 9024S PAY Fo~ five thousand five hundred forty six and 65/100 Dollars To the order of TUSTIN CiTY OF ACCOUNTS RECEIVABLE 300 CENTENNIAL WAY TUSTIN CA 92780 *NO. 331427 S6.~82 NORWEST BANK OHIO, N.A. 412 VAN WER'F, OH 4,,~891 ll':~ l,[, ~7,' ,:DL, ], 80:~,o, 2t, l'. qr:,OOOOP, L,L,q,' MEDIA ONE - WESTERN REGION FRANCHISE FEE CALCULATION FILING as of: 9/30/1997 Filing City: TUST1N FRANCHISE Formula: (All Revenue - Bad Debt Expense) * 5% Service Revenue Basic Service Revenue Installation Revenue Converter Rental Revenue Add'l Outlet Revenue Pay TV Revenue Sub Total - Service Revenue Other Revenue LO Revenue Home Shopping Revenue Other Revenue PPV Revenue Misc. Revenue Advertising Revenue Sub Total - Other Revenue Gross Revenue Bad Debt Expense Net Revenue 655,170 16,530 34,357 (1) 110,921 816,977 1,140 34,921 9,039 64,582 109,682 926,659 15,726 ,/ 910,933 Franchise Fee ~ 5% 45,547 TUSTINB.XL.S, Filino 11/24/97. 6:53 PM MedlaOne _ - Remittanc~ Advice 550 N. Continental Blvd., Suite 250 El Segundo, California 90245 DATE INVOICE NO. DESCRIPTION GROSS DISCOUNT'" 01/28/98 1/27/98 REMIT FRANCHISE FEE- 4 QT 44,638.81 Check No. · BALANCE 44,838.8~' FORMERLY CONTINENTAL CABLEVI~ION VENDOR CODE VENDOR NAME CIT033 CITY OF TUSI'IN 44,838.81 44,638.81 MediaOne- This is Broadband. This is the way. 550 N. Continental Blvd. Suite 250 El Segundo, CA 90245 PAY Forty four thousand six hundred thirty eight and 811100 Dollars To the order of CITY OF TUSTIN BUSINESS LICENSE DESK 300 CENTENNIAL WAY TUSTIN CA 92780 NO. 341304 ------- NORWE,.~r' BANK OHIO, N.A. 412 VAN WERT, OH 45891 ," =, t, i, =, O t,,. q EO0006 L, L, MEDIA ONE - WESTERN REGION FRANCHISE FEE CALCULATION FILING as of: 12/31/1997 Filing City: TUSTIN FRANCHISE Formula: (All Revenue - Bad Debt Expense) * 5% Service Revenue Basic Service Revenue Installation Revenue Converter Rental Revenue Add'l Outlet Revenue Pay TV Revenue Sub Total - Service Revenue Other Revenue LO Revenue Home Shopping Revenue Other Revenue PPV Revenue Misc. Revenue Advertising Revenue Sub Total - Other Revenue Gross Revenue Bad Debt Expense Net Revenue 646,593 11,541 33,408 111,993 803,535 1,511 22,484 7,206 70,230 ^ 101,432 12,191 ~, 892,776 Franchise Fee ~ 5% 44,639 TUSTINB.XLS. Filing 1/27/98, 11:21 AM ~88888888 ~88888888 ~88888888 ~88888888 ~8 8888 ~.. oo~0 ~88888888 o~o~ ~88888888 oooooooo ~88888888 MedlaOne ~ .... '~ - Remitta.,ce Advice Check No. 550 N. Continental Blvd., Suite 250 E! Segundo, California 90245 360043 DATE INVOICE NO. DESCRIPTION GROSS DiSCOUhrr BAlaNCE - 08/04/98 8/4/98 REMIT FRANCHISE FEE-1 QTR 845,254.22 45,2.54.2..2- MEDIAO! E FOFIMEI:ILY CONTINENTAL CABLEVISION , VENDOR CODE VENDOR NAME CIT033 CITY OF 'I'USTIN 45,254.22 45,254.22 MediaOne- This is Broadband. This is the Wa~'. S50 N. Continental Blvd. Suite 250 El Segundo, CA 90245 PAY Forty five thousand two hundred fifty four and 22/100 Do,am To the order of CITY OF TUSTIN BUSINESS LICENSE DESK 3O0 CENTENNIAL WAY TUSTIN CA 9278O NO. 360043 412 VAN WERT, OH I CHECKDATE i I CHECK AMOUNT I ,"~&OOt,~," ':ON~2D~2Nm: qEOOOO~Nt, q,' MED~ ONE -. WESTERN REGION FRANCHISE FEE CALCULATION FILING as of: 3/31/1998 Filing City: TUSTIN FRANCHISE Formula: (All Revenue - Bad Debt Expense) * 5% Service Revenue Basic Service Revenue Installation Revenue Converter Rental Revenue Add'l Outlet Revenue Pay TV Revenue Sub Total -Service Revenue Other Revenue LO Revenue Home Shopping Revenue Other Revenue PPV Revenue Misc. Revenue Advertising Revenue' Sub Total - Other Revenue Gross Revenue Bad Debt Expense Net Revenue 685,976 16,369 32,893 60 1'10,789 846,088 2,052 · . 13,593 12,470 43,038 71,153 917,241 12,157 905,084 Franchise Fee ~ 5% 45,254 '.'3ji ,733..19+ i2,4'[0. 13+ 26,191 · 5:J ~' · i 6, J66 · 59 ~ I.)_,'15:.~,5G- TUSTINB.XLS, Filing 4/15/98. 10:24 AM MedlaOne Remitt~.,ce Advice Check No. 550 N. Continental Blvd., Suite 250 E! Segundo, California 90245 3666~ DATE INVOICE NO. DESCRIPTION GROSS DISCOUNT BALANCE 07/21/98 7/21/98 FRANCHISE FEE-2 Q'IR 98 46,703.88 48,703.88 MEDIAOI E FORMERLY CONTINENTAL CABLEVI$1ON ,,,,,, VENDOR CODE VENDOR NAME CIT033 CITY OF TUSTIN 46,703.88 46,703.88 M e d i aOn Thi.~ i.~ Broad~and..Thi.~ is the wa~'. NORWEb'r BANK OHIO, N.A. 412 VAN WEIRT, OH 45891 $.50 N. Continental Blvd. Suite 250 El Segundo, CA 90245 PAY To the order of Forty six thousand seven hundred throe and 88/100 Dollars CITY OF TUSTIN BUSINESS LICENSE DESK 300 CENTENNIAL WAY TUSTIN CA g2780 CHECK DATE _ 07/23/98 ] ICHECK AMOUNT'1 ~"*-$46,703.88 MEDL4 ONE - WES~~ REGION FRANCHISE FEE CALCULATION FILING as of: 6/30/1998 Filing CiVy: TUSTIN FRANCHISE Formula: (All Revenue - Bad Debt Expense) * 5% Service Revenue Basic Service Revenue Installation Revenue 2onverter Rental Revenue ~,dd'l Outlet Revenue' Pay TV Revenue Sub Total - Service Revenue )ther Revenue LO Revenue Home Shopping Revenue )ther Revenue ?PV Revenue Misc. Revenue kdvcrtising Revenue Sub Total - Other Revenue Gross Revenue 3ad Debt Expens~ · tot Revenue Franchise Fe~ @ 5% 695344 16,259 32,552 9O I 11,474 855,720 1,418 9,303 8,563 69,165 88,449 944,169 10,091 934,078 46,704 69,165 875,004v~-a TUSTINB.XLS. F'~ng 7~21/~8. 8:09 ~ i. MedlaOne Remittance Advice Check 550 N. C, ontlnent~ Blvd.. Suite 250 El Sogundo, Califomi~ 90245 DATE INVOICE NO. DESCRIPTION GROSS DISCOUNT BALANCE - 10/24/0a 10/'25/~ FRANCHISE pP..E..3 QTI~ gE 45,710.43 4~,710.43 · .. : .." ~ ~... . ~'... ;:.:" :. ~ -~ ~:,. ,.%.~ ; · .: -~ '.' .. , :, ~ :..,. .~-.~ ~.;. ~:... .:"' .~1~ · · M~31AOI rE PORIdERI.Y GGNT1N~'T~ CdiffI. EVlllON VENDOR CODE VENDOR NAME 01T033 CITY OF TUb"TIN 4S,710.43 45,710.43 ,i MediaOne' 'Fbi, is Broadbtnd. Thio is the way. 550 N. Continental Blvd. Suite 250 E! Se. gun.do, CA 90245 PAY Forty ave tr~u.~d .even hundred t~n ~nd 43/100 Doll~u~ To the order crTY OF TUll'IN of BUSINES~ LICENSE DESK 300 CENTENNIAL WAY Tus'riN CA 02780 NO. 380328 412 VAN WERT, OH 48881 I.C, HECK DATE 10/'27/08 Ir"'"'$45,7~°.43 IICHECK AMOUNT ,. ' (EDIA ONE -- ~YESTERN REGION FRANCHISE FEE CALCULATION FILING of: 3rd Qtr Filing City: Tustin Franchise Total Revenues (Excluding Ad Sales) ' -inus Bad Debt Expense as Adlink Revenue Plus Advertising Revenue ling Revenue Franchise Fee ~ 5% 866,700 23,289 21,241 49,557 914,209 $ 45,710 5.00% 5.00% 1,062 2,478 10~25/98 12:0~1 PM ,edlaOne 550 N. Ca~nental Blvd., Suite 250 DATE 01/15/99 INVOICE NO. Ol/1.r~99 10930.22 946 s~., ...-_:_. ~lll~De~:' :.:_:.:..:_:~::.:_.:_._: s~=.:-.._'~ Bill Ref. - MEI3V~O~ I=ORMERLY CON/1NENTN. DESCRIPTION Remittance Advice 48,475.01 VENDOR CODE VENDOR NAME CIT033 CITY OF TUS"I'IN DISCOUNT ae~ oP. aslw SENDER'S COPY Chg. -,~,; Zip::'.:,', Check No. 3924a3 BALANCE 4~,475.O1 46,475.01 II MediaOne' This b BromJb~nd. This b the wsy. 550 .N. Continental Blvd. Suite 250 El Segundo, CA 90245 PAY row six thousand four hundred aevonty ~e and 01/100 Dollam To tho order of CITY OF TUSTIN BUSINESS LICENSE DESK 300 CENTENNIAL WAY TUSTIN CA 9278O NO. 392483 NORWE~i' ~ OHIO, NJ[, 412 VAN WEFIT, OH 45881 CHECK DATE ! t CHECK AMOUNT I. - o~e r""''~,47s.°~ I .";tq21~63." m:Ol~L203;.2hm: q;,ooooGl~hq," MEDIA ONE - WESTERN REGION ...... FRANCHISE FEE CALCULATION FILING as of: 4th Qtr Filing City: Tustin Franchise Total Revenues (Excluding Ad Sales) Minus Bad Debt Expense Plus Adlink Revenue Plus Advertising Revenue Filing Revenue Franchise Fee ~ 5% , $864,927.23 $13,041.05 $28,497.20 $49,116.81 $929,500.19 $46,475.01 5.00% 5.00% $1,424.86 $2,455.84 1115/99 10:14 AM ~ 8~8 ~88~88~8~8 ~88~8~8~8 · ~888~8~8~8 ~88~8~88 .,.. ','Check Date: 27.Apr. 1999 '~ MEDIAON'E 550 N. Continental Blvd. Suite 250 El S¢gundo, CA 90245 Invoice Number Invoice Date Voucher ID Gross Amount Discount Available Check No. 7009774 Paid Amount 04/26/99 26.Apr. 1999 000444'74 47,246.33 0.00 FRANCHISE FEE-I QTR 99 47.2'J6.33 ~ ~an~w SENDER'S COPY 5436~02 144 .. Ship. ~. - .... .- ': _. Svcs. :'::: Wt.- - Chg. .. _: ~.c~ - -' Desc. ' .... Dims Bill Ref. Bill To '."Vendor Number Name Total Discounts 0000001:522 CITY OF TUSTIN $0.00 .... Check Number Date Payment Handling Total Amount DiscoUnts Taken Total Paid Amount 7009774 27.Apr. 1999 01 $47,246.33 $0.00 $47,246.33 4 diat'3n g~I-MEDIAONE this is Broadband. This is the way. El Segundo, CA 90245 550 N. Continental Blvd. Suite 250 :.1 5egundo. CA 90245 Pay NORWEST BANK OHIO, N. A. Van Weft. OH 45891 56-38~412 Date 27.Apr. 1999 700977& Pay Amount $47,246.33*** ****FORTY-SEVEN THOUSAND TWO HUNDRED FORTY-SIX AND 33 / 100 US DOLLAR**** n'o The )rder Of CITY OF TUSTIN · 300 CENTENNIAL WAY TUSTIN. CA 92780 III r"J{--~ n I-~ I,.j ?,} I ..I .If9 I ,t '-ir'~ -m r* -* . -- · MEDIA ONE - WESTERN REGION FRANCHISE FEE CALCULATION FILING as of: 1st Quarter '99 Filing city: Tustin Total Ad Sales & Ad Link FF Total Revenues (Excluding Ad Sales) ..vlinus Bad Debt Expense Plus Ad Sales Revenue ~lus Adlink Revenue riling Revenue $869,748.40 $8,888.70 $53,557.85 $30,509.11 $944,926.66 $47,246.33 5.00% $2,677.89 5.00% $1,525.46 Total Franchise Fee @ 5% $4,203.35 Ad Sales & Ad Link Franchise Fee: ,-:ranchise Area Fee: $4,203.35 $43,042.98 (Book to 77500-2315-XZZ-950-950) (Book to 77500-2315-UKA-950-950) 'otal Franchise Fee ~ 5% $47,246.33 4/26/99 9:.21 AM Check Date: 22.Jul. 1999 ' h, IEDIAONE 550 N. Continental Blvd. Suite 250 El Segundo. CA 902,*5 Check No. 7019779 Invoice Number Invoice Date 07/19/99 19.Jul. 1999 FRANCHISE FEE PMT-2 QTR 99 Voucher ID Gross Amount Discount Available Paid Amount 0008 ! 049 48.941.27 0.00 48.9.1. 1.27 7E~39344.-336 - w~ Ship. . _.. , .. :...: Svcs. Dims Desc. ' Bill To B~ll Ref. am ~,,~stw SENDER'S COPY Vendor Number : Name Total Discounts 0000001522 CITY OF TUSTIN $0.00 Check Number Date Payment Handling Total Amount Discounts Taken Total Paid Amount 7019779 22.Jul. 1999 01 $48,941.27 $0.00 $48,941.27 Media n MEDIAONE e®55o N. Continental Blvd. Suite 250 El Segundo, CA 9024.5 NORWEST BANK OHIO, N. A. Van Wen. OH 45891 56-382/4 i 2 7019779 Date 22.Ju1.1999 Pay Amount $48,941.27'** Pay ****FORTY-EIGHT THOUSAND NINE HUNDRED FORTY-ONE AND 27 / 100 US DOLLAR**** 'o The CITY OF TUSTIN )taler Of 300 CENTENNIAL WAY TUSTIN. CA 92780 .~ r. EDLA ONE --. WESTERN REGION FRANCHISE FEE CALCULATION FILING of: 2nd Quarter '99 Filing ty: Tustin Total Ad Sales & Ad Link FF )tal Revenues (Excluding Ad Sales) Minus Bad Debt Expense -'us'Ad Sales Revenue - us Adlink Revenue --- ling Revenue Wotal Franchise Fee ~ 5% $859,006.23 $4,906.67 $82,089.90 $42,635.92 $978,825.38 5.00% · $4,104.50 5.00% $2,131.80 $48,941.27 $6,236.30 ' d Sales & Ad Link Franchise Fee: : Franchise Area Fee: _ ~tal Franchise Fee ~ 5% $6~236.30 (Book to 77500-2315-XZZ-950-950) $42,704.97 (Book to 77500-2315-UKA-950-950) $48,941.27 7119/99 5:0~ PM CHeck Date: 23.Nov. 1999 .~IEDIAONE 550 N. Continental Blvd. Suite 250 El Scgundo. CA 90245 · Check No. 70331 S0 Invoice Number Invoice Date Voucher ID Gross Amount Discount Available !!/16/99 .?RD QUARTER'99 Paid Amount ! 6. Nov. ! 999 00 ! 24595 50.104.14 0.00 50. t 04.14 004796396 183' __ Vendor Number Name TotalDiscounts 0000001522 CITY OF TUSTIN $0.00 ...... Che. ck Number Date Payment Handling Total Amount Discounts Taken Total Paid Amount 7033180 23.Nov. 1999 09 $50.104.14 $0.00 $50,104.14 ,Vledia no. ~o~w~~ OHIO. N.A. 7033:1.80 ,,,-" '-- '"- "--' '~' "" '-- 550 N. Continental Blvd. Suite 250 Van Wart. OH 45891 El Segundo. CA 90245 56-382/412 Date 23.Nov. 1999 Pay Amount $50,104.14'** Pay ****FIFTY THOUSAND ONE HUNDRED FOUR AND 14 / 100 US DOLLAR**** ['o The CITY OF TUSTIN Order Of 300 CENTENNIAL WAY TUSTIN, CA 92780 m:Ot, ~6 20 ~8 2t, l: q BO00 ~ 2&.9 MEDIA ONE - WESTERN REGION .-. · 'RANCHISE FEE CALCULATION FILING s of: 3rd Quarter '99 Filing city: Tustin -oral Revenues (Excluding Ad Sales) finus Bad Debt Expense Plus Ad Sales Revenue lus Adlink Revenue ' eiling Revenue Total Franchise Fee ~ 5% Total $881,772.22 $20,719.10 $93,073.26 $47,956.48 $1,002,082.86 $50,104.14 Ad Sales & Ad Link FF 5.00% $4,653.66 5.00% $2,397.82 $7,051.48 Ad Sales & Ad Link Franchise Fee: · canchise Area Fee: ~tal Franchise Fee ~ 5% $7,051.48 $43,052.66 $50,104.14 (Book to 77500-2315-XZZ-950-950) (Book to 77500-2315-UKA-950-950) 11116/99 3:41 PM i~i'Check Date: 25.Jan.2000 '.IEDIAONE 50 N. Continental Blvd. Suite 250 El Segundo. CA 902~,5 Check No. 7039472 Invoice Number Invoice Date Voucher ID Gross Amount Discount Available Paid Amount 01 / 19/00 19.Jan.2000 O0143819 50,106.88 0.00 50,106.88 4TH. QTR. '99 FRANCHISE FEE §09204961 544 MediaOne Vendor Number Name Total Discounts 0000001522 CITY OF TUSTIN $0.00 Total Amount Discounts Taken Total Paid Amount Check Number 7039472 Date 25.Jan.2000 Payment Handling ] 09 $50,106.88 $0.00 $50,106.88 MediaOne' NORWEST BANK OHIO, N.A. 7039,7:2 550 N. Continental Blvd. Suite 250 Van Wert. OH 45891 El Segundo. CA 90245 56-382/412 Date 25.Jan.2000 Pay Amount $50,106.88'** Pay ****FIFTY THOUSAND ONE HUNDRED SIX AND 88 ! 100 US DOLLAR**** To The Order Of CITY OF TUSTIN 300 CENTENNIAL WA Y TUSTIN. CA 92780 mmi'91 1_ 3f'9 R.O. ;ll_mm I::!!' NNN 1_ ~l.C:;I l_.a MEDIA ONE - WESTERN REGION · ,La~.NCHISE FEE CALCULATION FILING of: 4th Quarter '99 Filing City: Tustin -~tal Revenues (Excluding Ad Sales) ;inus Bad Debt Expense Plus Ad Sales Revenue us Adlink Revenue ~:~ling Revenue Total Franchise Fee ~ 5% Total $842,387.44 $5,784.82 $123,879.53 $41,655.50 $1,002,137.65 Ad Sales & Ad Link FF 5.00% $6,193.98 5.00% $2,082.78 $50,106.88 $8,276.76 (Book to 71000-2315-UMA-950-950) (Book to 77500-2315-XZZ-950-950) Ad Sales & Ad Link Franchise Fee: · ,'anchise Area Fee: >tal Franchise Fee ~ 5% $8,276.76 $41,830.12 (Book to 77500-2315-UKA-950-950) $50,106.88 1119/00 5:41 PM ~88~8~8~8~8 oo ~o~o~o ~8888888~ ~8 g8898888~8 g888~888~8~8 · . . ~!°° ~88~8888~8~8 ~ . . 888~8~8~8~8 ~888~8~8 ~8~8~888 8~8°~8 "~2heck Date: 18.Apr.2000 '-, MEDIAONE 550 N. Continental Blvd. Suite 250 El Se§undo, CA 90245 Check No. 7048.1.57 Invoice Number Invoice Date Voucher ID Gross Amount Discount Available 04712/00 12.Apr.2000 00167062 49,268.72 IST QTR. '00 FRANCHSIE FEE Paid Amount 49,268.72 Media(}'ne' ~//~/~-~ 004949016 181 Vendor Number Name Total Discounts 0000001522 CITY OF TUSTIN $0.00 Check Number 7048457 Date 18.Apr.2000 Payment Handling Total Amount Ol $49,268.72 Discounts Taken $0.00 Total Paid Amount $49,268.72 MediaOne' NORWESTBANK OHIO, N.A. 70'8'57 550 N. Continental Blvd. Suite 250 Van Wen, OH 45891 El Segundo, CA 90245 56-382/412 Date 18.Apr.2000 Pay Amount $49,268.72*** Pay ****FORTY-NINE THOUSAND TWO HUNDRED SIXTY-EIGHT AND 72 / 100 US DOLLAR**** ro Order Of CITY OF TUSTIN 300 CENTENNIAL WAY TUSTIN, CA 92780 MEDIA ONE - I/VES TERN REGION _ RANCHISE FEE CALCULATION FILING s of: 1st Quarter '00 Filing city: Tustin Total Ad Sales & Ad Link FF '~otal Revenues (Excluding Ad sales) 4inus Bad Debt Expense Plus Ad Sales Revenue .. _ 'lus Adlink Revenue $853,348.77 $7,943.36 $74,803.27 $65,165.75 5.00% $3,740.16 5.00% $3,258.29 (Book to 71000-2315-UMA-950-950) (Book to 77500-2315-XZZ-950-950) Piling Revenue $985,374.43 Total Franchise Fee ~ 5% $49,268.72 $6,998.45 Ad Sales & Ad Link Franchise Fee: $6,998.45 · ranchise Area Fee: $42,270.27 (Book to 77500-2315-UKA-950-950) 'otal Franchise Fee ~ 5% $49,268.72 4112/00 12:16 PM A T& T BROADBAND 'RANCHISE FEE CALCULATION FILING s of: 2nd Quarter'00 Filing city: Tustin 'total Revenues (Excluding Ad Sales) ~linus Bad Debt Expense Plus Ad Sales Revenue _ -- lus Adlink Revenue Filing Revenue Total Franchise Fee ~ 5% Total $871,717.34 $9,809.74 $76,497.78 $83,471.79 $1,021,877.17 $51,093.86 5.00% 5.00% Ad Sales & Ad Link FF $3,824.89 $4,173.59 $7,998.48 Ad Sales & Ad Link Franchise Fee: 'anchise Area Fee: ~tal Franchise Fee ~ 5% $7,998.48 $43,095.38 $51,093.86 'A T& T BROADBAND .:RANCHISE FEE CALCULATION FILING of: 3nd Quarter '00 Filing City: Tustin Total Ad Sales & Ad Link FF -mai Revenues (Excluding Ad Sales) ~inus Bad Debt Expense Plus Ad Sales Revenue _ -- lus Adlink Revenue ~iling Revenue $860,365.18 $2,927.87 $76,497.78 $83,471.79 $1,017,406.88 $50,87-0.34 5.00% 5.00% $3,824.89 $4,173.59 Total Franchise Fee ~ 5% $7,998.48 Ad Sales & Ad Link Franchise Fee: $7,998.48 · :anchise Area Fee: $42,871.86 ~tal Franchise Fee @ 5% $50,870.34 1/22/01 3:36 PM A T& T BROADBAND FRANCHISE FEE CALCULATION FILING as of: 4th Quarter 2000 Filing city: City of Tustin Total Ad Sales & Ad Link FF Total Revenues (Excluding Ad Sales) Minus Bad Debt Expense-- Plus Ad Sales Revenue $839,120.58 $456.00 '$55,259.00 5.00% $2,762.95 Filing Revenue $893,923.58 $44,696.18 Total Franchise Fee ~ 5% $2,762.95 Ad Sales & Ad Link Franchise Fee: Franchise Area Fee: $2,762.95 $411933.23 Total Franchise Fee @ 5% $44,696.18 oo oo~oo om om 888888888888888888888888888888888 ...............ooc~c~c~c~o~ oo c~c~ cici oo c~c~ ...... 888888888888888888888888888888888 c~Oc~cJo ooooo O~c~c~c~c~oo oo oo oo 888888888888888888888888888888888 888888888888888888888888888888888 888888888888888888888888888888888 ~888~8888888888 ~888~8:88888888 ~888~8~88888888 8~g88~88~88 88 88 .. ~...~..~.. ~oo ~oo oo oo R~88888A88888888~8~888~888~ 8~888~Se88888888~8~88BS~888~ ~8~8~88888~88888888~8~8~8~88~;~ !!TCI !!LIVb !!.i · ~AT&T BROADBAND, LLC Accounts Payable- P.O. Box 173805 , ' Denver, CO 80217.3805 - (877) 493-6526 403420-1QO1FF I 01-JUL-O1 1ST QTR 01 FRAN FEE ....... VENDOR #! ~ ~2700 ..... 47,666.1 $ CHECK .o. 4£1~714 :'O;l ...... ;,'7 :',' ;' THIS DOCUMENT IS VOID ~F BACKGROUND DESIGN IS NOT COLORED BROADBAND Accounts Payable P.O. Box 173805 Denver, CO 80217-3805 (877) 493-6526 PAY EXACTLY Forty Seven Thousand Six Hundred Sixty Six Dollars and 15 cents. TO r.E TUSTIN CiTY OF ORDER 300 CENTENNIAL WAY O~ TUSTIN, CA 92780 United States MELLON BANK, N.A. PITTSBURGH, PENNSYLVANIA 60-160 ~.~o~ 4218714 ~'. NUMBER VENDOR NO, . DATE .................. , · AMOUNT :....:.:.:.:.:-:............-...............-... VOIO AFTER 180 DAYS ,.t, ~ LP. ? ;I,h"" I:DL,-~ ~LD L&D O ]- ? '" q ?,q, l,," AT& T BROADBAND FRANCHISE FEE CALCULATION FILING as of: 1 st Quarter 2001 Filing City: City of Tustin Total Revenues (Excluding Ad Sales) Minus Bad Deb.t Exp'ense-- Subtotal - HSD Reveunue Plus Ad Sales Revenue Filing Revenue Total $845,687.'21 (8,134.42) $837,552.79 $42,267.59 .. $953,323.05 5.00% 5.00% 5.00% Franchise Fee $41,877.64 $2,113.38 $3,675.13 $47,666.15 *Includes Bad Debt Expense ~AT&T BROADBAND, LLC. CHECK DATE Accounts Payable. P.O. Box 173805 CHECK ~5.'_8.77..493'-6526 __ NO. VENDOR#! 192700 Ship. # Svcs. Desc. Bill Ref 7PI~RS~5-~TA 21-AUG-01 / CHECK AMOUNTI ..... 54,846.15 · Dims Bill To 2001 (10/98) W Zio!Postal Cocle Chg. SENDER'S COPY THIS DOCUMENT I$ VOID IF BACKGROUND DESIGN IS NOT COLORED BROAOBAND Accounts Payable P.O. Box 173805 Denver, CO 80217-3805 (877) 493-6526 PAY EXACTLY Fifty Four Thousand Eight Hundred Forty Six Dollars and 15 cents. · To 3'HE TUSTIN CITY OF ORDER 300 CENTENNIAL WAY OF TUSTIN, CA 92780 United States MELLON BANK, N.A. PITTSBURGH, PENNSYLVANIA 60-160 O FI, 7,,, q ?,q, t,,, c~Ec~ 4248987 NUMBER VENDOR NO. DATE AMOUNT lilt BROAi~AND, L].C. VOiD AFTER 180 DAYS Auttqorized Signer A T& T BROADBAND FRANCHISE FEE CALCULATION FILING as of: 2nd Quarter 2001 Filing City: City of Tustin Total Revenues (Excluding Ad Sales) Minus Bad Debt-Expense Subtotal - HsD Reveunue Plus Ad Sales Revenue . Filing Revenue Total $943,815.42 .(6,727.66) $937,087.76 $69,692.79 $90,142.43 $1,096,922.98 5.00% 5.00% 5.00% Franchise Fee $46,854.39" $3,484.64 $4,507.12 $54,846.15 *Includes Bad Debt Expense APPENDIX C SERVICES AND RATES 1997-2000 644 'r s..t · Tustln, CA 92680 · (714) 731-0992 i: :* ".C0"verier,' ne"~°te ca,~ol De~m:a~d -.-~: :.. ,:* FCC.R~ulatory FM . ' $33;7,~. FCC Regulatory Fee .05 Basic :.. ! 8.09 Expanded 2.13 Satellite:'.. : . ' ..... 20.27:- _ Converter, each 2.75 VCR/I~P COnverter~ each" ~ . . .~" 2.75 .(b) Remote Control, each .37 Ab~litional:Ou~et~ each .- ' NO Charge (a) Senior Discount (65+) -5.71 Ftrst:P~emlum' Service. 9.00' Each Additional Premium Service 5.00 Pay-Per-View i '?*> ' "TV Cdide CholCe'l(HBOLCinemax, STARZL~ndEncore) .; 18.$0 Varies By Event - ,-.. .'..: *- ..... - : 3i:42 ~i;. ' Reconnect Installation 33.77 :: .:~* Baslc:tn~tall~h. '.? . ,:', ,' .:' ..:../74.26:?:~ .:~ Non-Standard Installation Cost Based ': ..Trtp~Charge,:i:: '.' ~:/: ':i. ".,, .;., ::';: . .' "/ ":,:!:3i:~45~ ~:;' Additional Outlet Installation 17.74 ' Additional:Outlet, Installation"{!::;: ":': *:.. i ,:i ~'~ 3'~.;45,::: A/B Switch 17.74 (c) ! Electronic Change of Service 1.99 I Unreturned Converter 90.00 i. UnretumedStandardRe~Ote comrol~! :.:;'.::' :i ~., Late Charge 4.75 Houdy 5~rvtce Rate 43.68 * Rates do mX include · 5~ Franchise f~ which is paid to the local government. (ii) Does not include converter and/or remote. (b) For use with VCR or Pfctur~ln-Plctur~ TV set. (c) At time of Initial installation. (d) C~arge applies when separate mp needs to be made to customer's home. City of Tustin/Orange County 644 "B" Street · Tustin, CA 92680 (714) 731-0992. MONTHLY SERVICE RATES Basic Service ......................... $ 8.26 Expanded ............................. 2.28 Satellite Service ........................22.14 Converters, each ........................ 3.12 VCR/PIP converter, each ................ .'.. 3.12 Remote Control, each ...................... 40 Additional Outlet, each ............... No Charge Premium Service, each ................... ! 1.95 TV Guide .............................. 3.42 Pay-Per-View ................... Varies by event FCC Regulatory Fee ........................ 05 INSTALLATION ~nd MISCELLANEOUS CHARGES New Installation ...................... $ 64.52 Reconnect installation ................... 41.80 Non-Standard installation ............. Cost Based Trip Charge ........................... 37.58 Additional Outlet installation .............. 22.35 Additional Outlet Installation .............. 37.58 Electronic Change of Service ............... 1.99 A/B Switch Installation ................... 22.35 A/B SwitCh Installation ................... 37.58 Change Trapped Premium ................ 21.95 Unreturned Converter ................... 90;00 Unreturned Standard Remote Control ........ 10.00 Late Charge ............................ 4.75 Returned Check Charge .................. 10.00 Hourly Service Fee ...................... 45.89 Field Collection Fee ..................... 10.00 · R~tes do not Include ~ovemrnent ~a~.hlse fee or possessmy Interest tax. (c) Ch~ge applies when separate trip needs to be made to custome~ home.. RC 12 (a) (b) (c) (b) (c) Prices effective September 8, 1998 City of Tustin/Orange County 644 'B' Street · Tustin, CA 92680 (714) 731-0992 MONTHLY SERVICE RATES Basic Service ........................ $ 8.29 Expancled ............................ 2.69 Satellite Service ....................... 23.33 Converters, ~ach ....................... :3.24 Non.Adressable converter, each ............ 2.57 VCR/PIP converter, each .................. 3.12 Remote Control, each ..................... 47 Adclitional Outlet, each .............. No Charge (a) Premium Service, each .................. ! 1.95 Premium Plus Package (HBO, STARZ1, Encore) .................. 17.95 (cD Premium Select Package (HBO, Cinemax, STAR23, Encore) ........... 1 g. 50 (CD Premium Ultra Package (HBO,. Cinemax, STARZI, Encore & Showtime).. 27.95 (CCD TV Guicle ............................. 3.42 Home Theater ................. Varies by event FCC Regulatory Fee ....................... 04 INSTALLATION and MISCELLANEOUS CHARGES .New Installation .................... S 64.52 Reconnect Installation .................. 41.80 Non-Standard Installation ............ Cost Based Trip Charge. ' 37.58 AddlUonal Outlet Installation ............. 22.35 (b) Additional Outlet Installation ............. 37.58 Electronic Change of Service .............. 1.99 A/B Switch Installation .................. 22.35 (b) A/B Switch Installation .................. 37.58 (c) Change Trapped Premium ............... 21.95 Unreturned Converter ................. 250.00 Unreturned Standard Remote Control ....... 25.00 Late Charge .......................... 4.75 Returned Check Charge ................. 25.00 Hourly Service Fee ..................... 45.89 Field Collection Fee .................... I0.00 (b) At Mine ~ initial (O C:ha~e ape#es w~ Npiifl~e tflp needs to ~ made to custom~s homL (d) Muttlelex where ava#able. Prices effective August 1, 1999 Tustin 644 'B" Street · Tustin, CA 92670 I (888) 255-5789 MONTHLY SERVICE RATES Basic I (Off air networks) ......................... $ 8.79 Basic 2 (Largest variety of cable networks) .............. 26.32 Basic 3 (TBS, TNT & WCN) ........................... 2.91 Total Basic (Includes Basic 1, Basic 2, Basic 3, Receiver and Remote) ............................. 41.91 Addressable Receiver, each .......................... 3.40 Non-Addressable Receiver, each ....................... 2.70 VCR/PIP Receiver, each ............................. 3.40 Remote Control, each .............................. 0.49 Additional Outlet, each ......................... No Charge TV Guide ....................................... 3.59 Premium Service, each (HBO, Cinemax or ShowUme) ....... 1 i.95 STAR2] and Encore (together) ........................ 11.95 Premium Plus Package (includes HBO, STARZ~ & Encore) ..................... ! 7.95 Premium Select Package (Includes Premium Plus & Cinemax) .................... 20.95 Premium Ultra Package (includes Premium Select. & Showtime) ................. 27.95 Pay Per View .............................. Varies by event FCC Regulatory Fee ................................ 0.04 INSTALLATION ANO MISCELLANEOUS CHARGES New Standard Installation (Primary Outlet Only) .................. $ 50.95 New Underground Installation (Primary Outlet Only) .............. 50.95 Non-Standard Installation/Custom Wiring (Time & Materials) .................................................................... Varies Reconnect Installation/Transfer of Service .............................. 34.95 Additional Outlet, Relocate Outlet, A/B 5witch or Other Equipment Installation (Initial Trip) .......................................... 24.95 Additional Outlet, Relocate Outlet, A/B Switch or Other Equipment Installation (Separate Trip) . ................................... 41.95 A/B Switch Purchase ................................................................ 14.95 Wallfish Charge .....................................................................25.00 Hourly Service Charge .......................................................... ~50.95 Service Call (Non-Cable Related) ............................................ 41.95 Installation of Customer Owned Equipment (Separate Trip) ........................................................................ 41 .g5 Electronic Transaction ................................................................ 1.99 Service/Equipment Deposit ...................................................... 50.00 Unreturned/Damaged/Lost Receiver ..................................... 250.00 Unreturned/Damaged/Lost Remote Control ............................ 25.00 Returned Check Charge .......................................................... 25.00 Late Charge ................................................ ~ ............................. 4.99 Home Collection Fee ................................................................ 10.00 Billing Statement Copy (Per Copy) ........................................... 2.00 * All rates include franchise fees which are paid to your local govemment~ where applicable, except Pay Per View. Possessory interest tax and utility useCs tax are additional where apl~iicable. '* Does not include receiver and/or remote control. *** For use with VCR or Picture-in-Picture TV Set. Rc ~2 Prices effective June 2000 APPENDIX D SAMPLE SUBSCRIBER BILLS G44 e STREET RETURN SERVICE REQUESTED TUSTIN (DA '~7eo- Bill for Service Billing Otto: Account Number: Page 1 of 2 Oclo'o~ 31. 2000 For Customer Sef~dce: (888)255-5769 Mon-Frl 8am. 7pm & Sat 9am - 6pm Pay-Per-View & Repair Services: 24 Hours 17 Days Payment Canter Houm: Ivlofl. Fd 9~m - 6;)m & Sat 10am - 2pm For Service eL.. NO. [~02 Account Summary Thank you for being ,tn AT&T 9roaclbend ~etomer. Amount qf Lam' Statement Paymente ~_ ~ ,tJ'~ Se~es 59.90 59.90 - .AdJuotm, ants Taxee & ~oea 0.01 - Balance Duo Payment Oue Dine See Oetall on Baok 11115/00 News From AT&T Broadband Payment Coupon Please detach and enclose rtlls coupon with your payment. Do not send cash. Make checks peyflb/e to A T& T Broedband. j""-I Please che~ lhi8 box il you have noted addltloflal InfommtJon below. MS NORMA OLVERA BIIIIn~ D~t~: Acco~t Number: Ootober 31, 2000 Payments received off or after 10/20/00 are not Included In this statement. AT&T BROADBAND PO BOX 78914 PHOENIX AZ 814}82-6014 Balance Duo 57.q3 Peymant Due Date 11/15/00 Amount Enoloeed ~ _~ 2223.9 ! OTC xcel.! (edmoj 539O00 07 7 005793 i~:ii DST [NNOUIS ~ 91J102163619 Billing Data: Accent Number:. NO. 2_83 Illlll P~gl 2 of; 31.2000 Service & Use Date Description 09/30 Amt of Last Strut Payment~ Date Description 10/17 PAYMENT-THANK YOU 8ul~total Payment~ Monthly Servlcee Date 11~1 - 11/~ TOTAL BASIC -. ~ P~ge I~ud~: ~c I atS.~ - ~2m2~ R~te at .49 FCC REGU~TORY FEE 11/01 - 11~ PR~IUM PLUS Includ~:H~, Sram! & En~m 11/01 - 11/~ 2 ADDL OU~(S) Date 1~5 Orange ~un~ Pos~~ Int~ Re.nd Subt~l AdJu~nte Ta~ & Date Descdpt~n 1~18 F~ ~. Fee Sub.al T~ & F~ Date Description 10/31 Total Balance Due ~430 N. C4huln~ 81vd. Amount 59.90 Amount 59.90 59.90 Amount 41.95 --/ 17.95 0.00 69.60 1.m~. J Amount .~ 0.01 - ' 0.01- Amount ora X~07-t (MX7) APPENDIX E AT&T RESPONSE TO TMC QUESTIONS TELECOMMUNICATIONS MANAGEMENT CORP. 5757 Wilshire BIvd. · Suite 635 * Los Angeles, CA 90036 · (323) 931-2600 · Fax (323) 931-7355 January 23, 2002 Mr. Del Heintz Director, Local Government Affairs AT&T Broadband 200 Paularino Avenue Costa Mesa, CA 92626 Dear Mr. Heintz: We are completing the franchise fee audit for AT&T Broad- band's cable system serving the City of Tustin. There are a few issues which require clarification. (1) We understand that it has been MediaOne's practice, and continued by AT&T Broadband in Tustin, not to itemize franchise fee charges on customer bills, but to include these charges within the appropriate service charges. The revenue summary sheets that you sent us (copy enclosed) indicate zero revenue for Item 24 for the years 1997, 1998 and 2000, which would be consistent with this practice. However, for 1999 and the first six months of 2001, revenues are shown for this item. The amounts shown do not appear to have any relation to the overall 5% .franchise fee. Please provide an explanation for this difference. (2) No '"Digital Programming Tier(s)" .revenue, Item 6, is shown, presumably because this ~service is not offered. For one month, January 1998, however, revenue of $24,447 is indicated. Please explain what this item signifies. (3) For 1997 through 2000, advertising revenues are shown as Items 28 and 29, for AD SALES (local/regional) and AD LINK (national), respectively. For the first six months of 2001, no revenue is shown for Item 29. Please explain whether this represents a change in AT&T Broadband's advertising sales or revenue allocation practices. Mr. Del Heintz AT&T Broadband January 23, 2002 (4) Are the advertising revenues, Items 28 and 29, net of commissions paid to sales personnel or advertising rep- resentatives? If so, we request an annual .tOtal of the amounts paid as commissions, and whether the payees were AT&T Broadband affiliates or independent agents. We would appreciate a prompt response to these questions, which will allow us to complete the audit report expeditiously. Thank you for your cooperation. Encl. C. Joe Meyers Sincerely, Carl Pilnick President kT T February20,2002 Mr. Carl Pilnick President Telecommunications Management Corp. 5757 Wilshire Boulevard, Suite 635 Los Angeles, CA 90036 Dear Mr. Pilnick: Please accept my apologies for the'length of time it has taken us to respond to your letter of January 23 · i have been Working with our Finance ~ent oa your quei~aons .!. a'ough 4 and. I am Pr°vi "ding y0U~'~ additional clarity and information you were seeking. Please feel free to comaet me for any additional information you may neecL I am attaching a copy of your original letter for your ease. (1) Until recently AT&T Broadband did not show franchise fees as a separate line item on subscribers' bills in Tustin. However, during the period you are auditing AT&T Broadband used three different accounting systems, with different methods for mapping from billing reports to the general ledger. Specifically, we converted to a PeopleSo~ accounting system in February 1999, and then to an Oracle system in 2001. The tqx~rt you reviewed for February through December 1999 - when the PeopleSoft system was in use - shows franchise charges for product 105 in Account 3421 (Franchise Fees). Neither the accounting system we used before February 1999 nor the Oracle system that we converted to in 2001 mapped from billing reports to the general ledger in this way. This accounts for the variance you detected year to year~ ' · . .. (2) Again, the variance is due to a mapping issue with our accounling system in January 1998. For comparative purposes, the $24,447.10 should be added to line 5 (PPV Receipts). (3) For the first two quarters of 2001, advertising revenue from Adlink was not reported separately from other advertising revenue. This does not represent a change in AT&T Broadhand's practices for allocating advertising revenue. If you would like, we will provide a breakdown of this revenue for the first two quarters of 2001. ., (4) AT&T Broadband's practices regarding commissions on advertising revenue varied, dUring the audit period. At times the revenues were reported net of commissions retained by independent'by independent advertising agencies. The total amount of commissions treated in this manner during the audit period was $57,267.05. ,. Director, Local Government Affai~ . ... - , , -..' :~., ,:. ~-. : ' . ~[~ Recycled Paper Physical Plant Inspection: AT&T Broadband Cable In the City of Tustin, California March, 2002 KRAMER. FIRM INCORPORATED TELECOMMUNICATIONS TECHNOLOGY COUNSEL FOR GOVERNMENTS AND PRIVATE INSTITUTIONS SINCE 1984 TEL +1 (310) 473 9900 FAX +1 (310) 473 S900 TOLL FREE (866) JKRAMER KRAMER@KRAMERFIRM.COM ~VW. KRAMERFIRM.COM WV~V. CELLULARPCS.COM 2001 S BARRINGTON STE 306 LOS ANGELES, CALIFORNIA 90025-5379 Performed by Kramer. Firm, Inc. Los Angeles, California Subcontractor of Telecommunications Management Corp. Los Angeles, California PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Physical Plant Inspection of AT&T Broadband in the City of Tustin, California TABLE OF CONTENTS SECTION DESCRIPTION PAGE A INTRODUCTION AND EXECUTIVE OVERVIEW A-1 METHOD B-1 OBSERVATIONS AND SUMMARY C-1 D CONCLUSIONS AND RECOMMENDATIONS D-1 ATTACHMENT A1: INSPECTION REPORT AND PHOTOGRAPHS ATTACHMENTA2: ABOUT THE AUTHORS <BALANCE OF PAGE INTENTIONALLY LEFT BLANK> PHYSICAL PLANT INSPECTION Of At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Physical Plant Inspection of AT&T Broadband in the City of Tustin, California Introduction and Executive Overview A At the direction of the City of Tustin, ("City"), Kramer. Firm, Inc. (subcontractor of Telecommunications Management Corp.) has conducted an inspection of the cable television physical plant system within the City operated by AT&T Broadband ("AT&T"). Jonathan L. Kramer, FIAE and Steve Allen, BCE ("we", "our") of KRAMER.FIRM conducted the entire inspection of AT&T's Tustin system during the second and third week of March, 2002. The purpose of this inspection was to permit us to opine on whether AT&T's outside plant system complies with California Public Utilities Commission (CPUC) General Order 95, CPUC General Order 128, and the City's Municipal Code adopting the National Electrical Code. The inspection data and site photographs may be found in Attachment A 1 of this report. The qualifications of Messrs Kramer and Allen to conduct this inspection and produce this report on our findings are provided as Attachment A2 of this report. For the reasons set out at Sections C and D, and documented at Attachment Al, we conclude that this system has materially failed to comply with all of the safety code requirements of CPUC GO95, GO128, and the Municipal Code. We believe that the code violations in this system can be identified and corrected by AT&T within six months. <Balance of page intentionally left blank> PAGE A 1 PHYSICAL PLANT INSPECTION OF at&t BROADBAND CABLE IN TUSTIN, CALIFORNIA .Method B To collect the data reported here and to permit us to offer opinions regarding the overall system, Messrs. Kramer and Allen conducted this inspection of AT&T's Tustin system in the major operating areas of that franchise area. Our code authorities for this inspection are: 1. California Public Utilities Commission General Order 95 2. California Public Utilities Commission General Order 128 3. National Electrical Code/California Electrical Code. During this follow-up inspection, we drove approximately 65 street-road miles in this system. 1 A route map of the areas we inspected is shown on the following page. The representative log of our observations is provided as Attachment A 1 of this report. <Balance of page intentionally left blank> ~ The route was generated by using the automated tracking function of a Garmin III Plus Global Positioning System (GPS) satellite receiver (Serial number 96429894), and a Garmin V (Serial number 93018827), both connected to an external amplified roof-mounted antenna. The recorded position data was then downloaded and displayed on DeLorme Street Atlas 8.0 software, which created the map output. Note that due to the accuracy of the position data provided by civilian GPS receivers such as the Garmin listed above, the track plotted is approximate only, and the actual track may vary by upwards of 20 meters, although the error is typically about 10 meters or less. PAGE A2 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Tustin System Inspection Map Inspection route shown as heavy blue line on map. The inspection route was approximately 65 street-miles in length (includes double-backs). <Balance of page intentionally left blank> PAGE A3 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA C Observations and Summary The illustration on the following page will be instructive as we discuss our findings. The illustration highlights the most common physical plant violations of California Public Utilities Commission General Order 95 and General Order 128 as well as the National Electrical Code (adopted by the County as its electrical code). Note that not every violation illustrated on the following page was observed in AT&T's system. The drawing is a general teaching tool we've developed to visually explain cable system construction matters. As you read the discussion that follows the illustration and Attachment A 1, you may wish to refer back to the following illustration to better understand the discussion and points cited. <Balance of page intentionally left blank> PAGE CI PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA ~E~ W~ -§ ._0 o o PAGE C2 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA SYSTEM DESCRIPTION AND OBSERVATIONS Nearly all of the underground plant is constructed in flush-mounted vaults, save for amplifier and power supply locations. The physical condition of the underground subscriber cable system appears to be good at the vaults, but poor to very poor at the subscriber's side of the conduit. The aerial plant appears to have been recently rebuilt. Overall, the overhead plant between poles appears to be in good condition. We did observe a number of locations that have not had the required down guy guards installed or maintained, but for the most part, the overhead cables and supporting structures appear to be in good condition The physical installation of the standby power supplies we observed was professional, and we rate them as being in good to very good condition. The subscriber drops (the smaller, flexible coaxial cables connecting the signals from the distribution line taps to the individual homes) are in fair to poor condition in both the underground and overhead portions of the plant. As for underground drop code violations, most commonly the violations center around inadequately buried and/or unsecured drops and drop conduits. These are prime trip hazards. We estimate the number of violations in this area to be between 800-1,500. Proper subscriber drop grounding is required to prevent electrical shocks and fires at subscriber locations. Subscriber drop grounding, as required by the California Electrical Code and the City's Municipal code, is in poor condition. We observed that AT&T did not consistently use the structure's electrical ground as its grounding point. Moreover, we observed that AT&T was using independent ground rods, ground connections of questionable quality, or no grounding at all at some active and inactive subscriber locations. Overall, we estimate that no greater than 60 percent of the drops to the subscriber and non-subscriber homes are grounded in a manner consistent with the NEC 820-40 standard. Based on the number of housing units within the City in AT&T's service area, we estimate the number of locations with grounding violations exceeds 6,000, and the total number of grounding code violations2 exceeds 8,000. As first mentioned above, Attachment A 1 of this report lists the locations we cited as illustrations of our findings during this inspection, and Attachment A2 consists of photographs illustrating selected violations observed during our inspection of the AT&T system. 2 Includes multiple violations at a single location PAGE C3 PHYSICAL PLANT INSPECTION · OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Conclusions and Recommendations D Based on more than 24 years of outside plant cable engineering expertise, over 16 of which have been directly related to inspection of cable television systems on behalf of government agencies such as the City, including other cable systems in California subject to CPUC GO95 and GO128, and the National Electrical Code and other AT&T systems within California, we offer the following conclusions and recommendations based on the system observations reported here: The physical plant condition of the underground system at and between vaults and pedestals (the mainline portions of the system) is in good to very good condition. . The physical plant condition of the underground system at the subscriber's (or ex-subscriber's) structure is in poor condition. o We estimate that the percentage of subscriber drops (active and inactive) not grounded or not grounded to all of the NEC Section 820 requirements is 40% or more of the total number of installed drops. . We estimate the total number of code violations in this system to exceed 10,000. Our observations disclose that most locations exhibit multiple violations of various code sections. o o We recommend that the City direct AT&T to inspect immediately all of its subscriber drops, and to make all necessary adjustments to those drops to bring them into compliance with all of the requirements of CPUC General Order 95, CPUC General Order 128, and the City's Municipal Code regarding construction and grounding. We do not believe that the work required can be performed in conjunction with AT&T's day-to-day installation, disconnection, and maintenance activities within the City. Rather, the violations we observed strongly suggest that the field staff is either not properly trained to construct and/or maintain the system to meet the applicable safety code requirements, or that inadequate management controls do not detect and cause the violations to be cured. <End of Report; Attachments Follow> PAGE DI PHYSICAL PLANT INSPECTION Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Attachment 1: Inspection Report and Photographs A1 Inspection of AT&T Cable in The City of Tustin, California This list does not purport to list every violation in the subject inspection area, but rather is used to provide representative categories of violations still observed in this system. ADDRESS DESCRIPTION OF VIOLATION CODE 16031 BLISS BROKEN DOWN GUY GUARD GO-95 14731 NEWPORT NO GROUND TO MDU, 820-40, 820-6 UNSECURED WIRING 15721 NEWPORT NO GROUND TO MDU, 820-40, 820-6 UNSECURED WIRING ALLEY ADJ TO 15981 MISSING DOWN GUY GUARD, GO-95 MYRTLE LOOSE WIRING ON MDU 820-6 ADJACENT. 16001 PASADENA MISSING DOWN GUY GUARD GO-95 16002 PASADENA MISSING DOWN GUY GUARD GO-95 GO-95 INTERSECTION OF NEWPORT AND SYCAMORE AVENUES INTERSECTION OF NEWPORT AND SYCAMORE AVENUES SYCAMORE AVENUE POLE # 2249673 - DOWN GUY DISCONNECTED. IMPROPER RISER GUARD MATERIAL. SCHED 160 RATHER THAN SCHED 80 AS REQUIRED POLE # 2249673. YELLOW PROPYLENE ROPE USED TO HOLD PORTIONS OF CABLE SYSTEM TO POLE LOW TRUNK AND DISTRIBUTION AS IT CROSSES NEWPORT 1122 SYCAMORE LINES. 16'3" OVER STREET POLE # 1509838, IMPROPER RISER GUARD MATERIAL. MUST BE SCHED 80 CONDUIT OR METAL GO-95 GO-95 GO-95 ATTACHMENT PAGE I PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA ADDRESS DESCRIPTION OF VIOLATION CODE EQUIV BELOW 8 FEET HIGH FROM GROUND SYCAMORE AT SCHOOL NO DOWN GUY AT END OF SPAN. GO-95 LANE BROKEN GUY STAPLED TO POLE. 1412 WINDEMERE ABANDONED DROP AND GROUND GO-95 BLOCK 1382 WINDEMERE NOT GROUNDED, LOOSE WIRING 820-40, 820-6 1342 WINDEMERE UNSECURED WIRING, 820-6 WORKMANSHIP ISSUES 1321 WINDEMERE 820-6 1342 WINDEMERE 1361 WINDEMERE 1371 WINDEMERE 14401 WILDEVE LANE 14391 WILDEVE LANE 1321 PENRITH UNSECURED WIRING, WORKMANSHIP ISSUES NOT GROUNDED NOT GROUNDED, UNSECURED WIRING, WORKMANSHIP ISSUES DROP GROUNDED TO WATER. UNABLE TO DETERMINE WHETHER BONDED TO POWER ELECTRODE. LOOSE GROUND BLOCK. NOT GROUNDED. WIRING NOT SECURED. WIRING NOT SECURED, TRIP HAZARD, IMPROPER WIRE ROUTING ( WIRE GOES UP DOWNSPOUT TO ROOF ) GROUNDED TO GROUND ROD, LOOSE WIRING 1371 PENRITH DROP NOT GROUNDED PRIOR TO POINT OF ENTRY. 14451 DENBIGH LANE NOT GROUNDED, LOOSE WIRING, WORKMANSHIP 14461 DENBIGH LANE NOT GROUNDED, LOOSE WIRING, WORKMANSHIP 14481 DENBIGH LANE LOOSE WIRING, WORKMANSHIP ISSUES 1651 COPPERFIELD NOT GROUNDED 1625 COPPERFIELD NOT GROUNDED 1611 COPPERFIELD GROUNDED TO UNKNOWN WATER FEED, WIRING NOT STRAIGHT AS PRATICAL 820-40 820-40, 820-6 820-40, 820-6 820-40, 820-6 820-6 820-40, 820-6 820-40 820-40, 820-6 820-40, 820-6 820-6 820-40 820-40 820-40 1601 COPPERFIELD NOT GROUNDED 820-40 ATTACHMENT PAGE 2 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA ADDRESS DESCRIPTION OF VIOLATION CODE 1642 COPPERFIELD NOT GROUNDED 820-40 14311 HEATHERFIELD NOT GROUNDED 820-40 14331 HEATHERFIELD NOT GROUNDED, LOOSE WIRING, 820-40, 820-6 TRIP HAZARD 14312 HEATHERFIELD NOT GROUNDED 820-40 14282 HEATHERFIELD NOT GROUNDED, TRIP HAZARD 820-40, 820-6 WHERE WIRE EXITS FROM GROUND MDU ACROSS FROM MDU GROUNDED TO WATER, 820-40 1961 MITCHELL UNKNOWN BOND TO COMMON ELECTRICAL GROUND 1971 MITCHELL 1961 MITCHELL CORNER OF MITCHELL AND BROWNING AVENUES 2345 DAHLIA LOW DROP OVER PEDESTRIAN AREA, 7'5". GROUNDED TO 4' GROUND ROD, GROUND NOT RUN AS STRAIGHT AS PRACTICAL DROP RUNS ACROSS ROOF OF HOUSE, NOT GROUNDED. MISSING DOWN GUY GUARD GROUND WIRE NOT PROTECTED WHERE IT EMERGES FROM CATV BOX 820-40 GO-95 820-40 820-10 GO-95 820-40 14192 RAINTREE GROUND WIRE NOT PROTECTED 820-40 WHERE IT EMERGES FROM CATV BOX 2311 DAHLIA SAME AS ABOVE 820-40 2322 DAHLIA SAME AS ABOVE 820-40 13702 FARMINGTON NO GROUND, WIRING RUN ON 820-40 ROAD ROOF OF HOUSE 820-10 820-6 13692 FARMINGTON GROUNDED TO GROUND ROD 820-40 ROAD 13661 FARMINGTON ROAD 13701 FARMINGTON ROAD GROUNDED TO GROUND ROD, GROUND WIRE NOT RUN STRAIGHT AS PRACTICAL, POOR WORKMANSHIP. (APPEARS TO BE NEW INSTALL) BROKEN VAULT LID 820-40 820-6 GO-128 ATTACHMENT PAGE 3 PHYSICAL PLANT INSPECTION OF AT&t BROADBAND CABLE IN TUSTIN, CALIFORNia ADDRESS DESCRIPTION OF VIOLATION CODE 13711 FARMINGTON NOT GROUNDED 820-40 ROAD 13731 FARMINGTON GROUNDED TO GROUND ROD, 820-40 ROAD LOOSE WIRING 820-6 INTERSECTION OF CABLE INTERFERENCE WITH GO-95 FARMINGTON AND STREET LIGHT STANDARD BRYAN AVENUE GO-95 BRYAN AVENUE NORTH OF BROWNING AVENUE INTERFERENCE WITH TELCO. CABLE FIBER SPLICE CASE IS INTERFERING WITH TELCO TRUNK CABLE. CLEARANCE PROBLEM. USE OF DUCT TAPE TO HOLD FIBER CABLE TO POLE. INTERFERENCE HAS RESULTED IN BROKEN TELCO LASHING WIRE 13516 PECAN MDU NOT GROUNDED 820-6 2305 BOXWOOD GROUND WIRE CRUSHED BY LID 820-40 ON PREWIRE BOX 2292 BOXWOOD MDU NOT GROUNDED 820-40 13515 HOLLY INSUFFICIENT CLEARANCE FROM 820-10 TELCO WIRING IN CLOSET. INTERFERENCE WITH TELCO 12186 TUSTIN RANCH POWER SUPPLY LID OPEN. GO-95 ROAD 13151 WICKSHIRE GROUNDED TO GAS 820-40 13165 WICKSHIRE NOT GROUNDED 820-40 13181 WICKSHIRE NOT GROUNDED 820-40 13192 WICKSHIRE CRACKED VAULT LID GO-128 13166 WICKSHIRE NOT GROUNDED 820-40 1209 FIRST STREET OPEN PEDESTAL, NOT SET GO-128 1203 FIRST STREET MDU NOT GROUNDED 820-40 REAR OF 245 PREBLE, CONFLICT WITH POWER AT 820-10.B BEHIND CITY HALL, SERVICE HEAD. 820-40 MDU DROP NOT GROUNDED 237 PREBLE NOT GROUNDED, POOR 820-40 WORKMANSHIP 820-6 225 PREBLE NOT GROUNDED, CLEARANCE 820-40 VIOLATIONS WITH OTHER 820-10(B) CONDUCTORS 302 PREBLE MDU NOT GROUNDED, 820-40 CLEARANCE FROM TELCO 820-10 la.~ ATTACliMENT PAGE 4 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA ADDRESS DESCRIPTION OF VIOLATION CODE 329 PREBLE NOT GROUNDED, WIRING RUN 820-40 ACROSS ROOF, WORKMANSHIP 820-10 ISSUES 820-6 337 PREBLE MDU NOT GROUNDED 820-40 178 PREBLE DROP ATTACHED TO POWER 820-10.C RISER, GROUNDED TO POWER 820-40 RISER ABOVE ROOF LINE ACROSS FROM 178 DOWN GUY NOT GUARDED GO-95 PREBLE DRIVE 333 EL CAMINO REAL DROP HITS POWER MAST, NOT 820-10.C GROUND 820-40 ALLEY BEHIND 360 EL NO DOWN GUY GUARD GO-95 CAMINO REAL 533 SOUTH C STREET NO GROUND 820-40 500 SOUTH C STREET NO GROUND, DROP TOO CLOSE TO POWER 570 SOUTH C STREET NO GROUND 550 SOUTH B STREET GROUNDED TO POWER MAST 820-40 ABOVE ROOF LINE 530 SOUTH B STREET CABLE INTERFERES/RUBS GO-95 AGAINST STREET LIGHT ARM 310 B STREET NO GROUND 820-40 305 2ND STREET NO DOWN GUY GUARD GO-95 305 2ND STREET GROUNDED TO GROUND ROD 820-40 340 2Nr) STREET AERIAL TO UNDERGROUND DROP GO-95 ON POLE NOT COVERED BY RISER GUARD 435 2ND STREET NO GROUND 820-40 INTERSECTION OF BROKEN LASHING WIRE GO-95 PACIFIC STREET AND 2ND STREET 245 PACIFIC STREET CABLE AND STRAND BENT GO-95 AROUND TREE BRANCHES 250 PACIFIC STREET LOW DROP 15'6" GO-95 240 PACIFIC STREET LOW DROP 16'6" GO-95 240 PACIFIC STREET GROUNDED TO POWER MAST 820-40 ABOVE ROOF 250 PACIFIC STREET NOT GROUNDED 820-40 1642 ROANOKE AVE NO GROUND 820-40 1641 ROANOKE AVE NO GROUND 820-40 1611 DARCY PEDESTAL NOT SET CORRECTLY, GO-128 820-40 820-10(B) 820-40 ATTACHMENT PAGE 5 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA ADDRESS 14772 DEVONSHIRE 14771 DEVONSHIRE 14821 DEVONSHIRE 1652 BROOKSHIRE 1631 BROOKSHIRE 1682 BROOKSHIRE 1722 BROOKSHIRE 1721 BROOKSHIRE 1732 BROODSHIRE 1742 BROOKSHIRE 1752 BROOKSHIRE 1762 BROOKSHIRE 1751 BROOKSHIRE 1761 BROOKSHIRE 1782 BROOKSHIRE DESCRIPTION OF VIOLATION NOT LOCKED NO GROUND GROUND TO GROUND ROD NO GROUND NO GROUND NO GROUND GROUNDED TO GROUND ROD GROUNDED TO GROUND ROD DROP GOES DIRECTLY INTO GARAGE, NOT GROUNDED DROP GOES DIRECTLY INTO GARAGE, NOT GROUNDED GROUNDED TO GROUND ROD NO GROUND VISIBLE GROUNDED TO GROUND ROD GROUNDED TO GROUND ROD NO GROUND DOG HOUSE PEDESTAL NOT SECURED CODE 820-40 820-40 820-40 820-40 820-40 820-40 820-40 820-40 820-40 820-40 820-40 820-40 820-40 820-40 GO-128 ACROSS FROM 1782 BROOKSHIRE 1832 BROOKSHIRE 1822 BROOKSHIRE CORNER OF C STREET AND THIRD OFFICE BUILDING, CORNER OF 2ND STREET AND C STREET CORNER OF 2ND STREET AND C STREET OTN DOG HOUSE PEDESTAL UNSECURED AND NOT SET TO GRADE NO GROUND NO GROUND DEAD END DISTRIBUTION CABLE, NO DOWN GUY NO GROUND NO GUY GUARD ON DOWN GUY GO-128 820-40 820-40 GO-95 820-40 GO-95 143 C STREET NO GROUND, WORKMANSHIP 820-40 ISSUES 820-6 1148 C STREET NO GROUND, HITS POWER MAST, 820-40 LOOSE WIRING, WORKMANSHIP 820-10.C ISSUES 820-6 138 NORTH B STREET NO GROUND 820-40 140 NORTH B STREET ATTACHMENT POINT TOO CLOSE 820-10(B) TO POWER 155 NORTH B STREET NO GROUND, LOOSE WIRING, 820-40 ATTACIIMENT PAGE 6 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA ADDRESS 165 NORTH B STREET DESCRIPTION OF VIOLATION TOO CLOSE TO POWER CODE 820-6 178 NORTH B STREET NO GROUND 183 NORTH B STREET NO GROUND 820-40 CORNER OF B STREET MISSING DOWN GUY GUARD GO-95 AND IRVINE 17752 MILLER DRIVE NO GROUND, U/G DROP ON TOP 820-40 OF GROUND GO-128 17751 MILLER DRIVE NO GROUND, WIRING RUN ON 820-40 ROOF 820-6 17741 MILLER NO GROUND 820-40 17731 MILLER NO GROUND 820-40 17721 MILLER NO GROUND 820-40 17732 MILLER NO GROUND 820-40 17722 MILLER NO GROUND 820-40 17691 MILLER GROUNDED TO GROUND ROD 820-40 17711 MILLER GROUNDED TO GROUND ROD 820-40 17692 MILLER NO GROUND 820-40 17682 MILLER NO GROUND 820-40 17681 MILLER NO GROUND 820-40 17661 MILLER DOGHOUSE PED NOT SET TO GO-128 GRADE 17662 MILLER DOGHOUSE PED NOT SET TO GO-128 GRADE 17661 MILLER DOGHOUSE PED NOT SET TO GO- 128 GRADE CORNER OF WEST DOWN GUY WITH NO GUY GUARD GO-95 BURRE LANE AND B STREET. 1615 SHERBROOK NO GROUND 820-40 DRIVE 17551 SHERBROOK NO GROUND, (NEW DROP) 820-40 DRIVE 17521 SHERBROOK NO GROUND 820-40 DRIVE 1491 GALY STREET NO GROUND 820-40 17501 VIA POSADA NO GROUND 820-40 820-40 ENTIRE APT COMPLEX ON VIA POSADA NOT GROUNDED PRIOR TO ENTRY. CABLE PENETRATES DIRECTLY INTO GARAGE ON ALL UNITS 820-10(B) 820-40 ATTACHMENT PAGE 7 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CAlifORNIA ADDRESS DESCRIPTION OF VIOLATION CODE 17482 VIA COMA NO GROUND 820-40 17486 VIA COMA NO GROUND 820-40 17472 VIA COMA NO GROUND 820-40 17351 JACARANDA NO GROUND 820-40 14392 ROSEWOOD NO GROUND, WORKMANSHIP 820-40 DRIVE ISSUES 820-6 17401 NORWOOD PARK UNSECURED PEDESTALS GO-128 17491 NORWOOD PARK UNSECURED PEDESTALS GO-128 CORNER OF ACACIA UNDERGROUND PEDESTALS NOT GO-128 AND NORWOOD PARK SET TO GRADE, UNSECURED, LIDS PLACE, DISLODGED 270 MYRTLE STREET DROP HITS POWER MAST 820-10.C 225 MYRTLE STREET DROP HITS POWER MAST, TOO 820-10.C,B CLOSE TO POWER 260 MYRTLE STREET NO GROUND 820-40 1701 AMHURST NO GROUND 820-40 1662 AMHURST NO GROUND 820-40 1642 AMHURST NO GROUND 820-40 1602 AMHURST NO GROUND 820-40 1722 AMHURST NO GROUND 820-40 1732 AMHURST NO GROUND 820-40 14452 RIVERBROOK NO GROUND 820-40 14401 CLOVERBROOK NO GROUND 820-40 14391 CLOVERBROOK NO GROUND 820-40 14342 CLOVERBROOK PEDESTAL NOT SECURED, NOT TO GO-128 GRADE 14262 CLOVERBROOK NO GROUND 820-40 14291 CLOVERBROOK NO GROUND 820-40 1852 SANDWOOD NO GROUND 820-40 14281 SANDWOOD NO GROUND 820-40 14261 SANDWOOD NO GROUND 820-40 HICKORY BRANCH APARTMENTS, SANDWOOD DRIVE WHOLE APARTMENT COMPLEX WIRED WITH HARD LINE CABLE, BUT NO VISIBLE GROUNDS AT DROP CONTROL BOX 820-40 <End of example violation listing> ATTACIIMENT PAGE 8 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Inspection Photos and Explanations Rear of 333 E1 Camino Real Drop attached to power riser. No connection anymore. Abandoned drop. Rear of 335 E1 Camino Real Drop no longer grounded. Bond removed from power conduit. ATTACHMENT PAGE 9 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA 500 South C Street Drop too close to power drop Across from 540 B Street Cables resting on top of street light arm 1770 Roanoke Drive U/G Pedestal not set to grade level I.~ ATTACHMENT PAGE 10 PHYSICAL PLANT INSPECTION Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA 1642 Roanoke Drive No Ground 1 64 1 Roanoke Drive No ground, unsecured wiring, workmanship. 14772 Devonshire Drive No Ground; trip hazard. I~.~ ATTACIIMENT PAGE 11 PHYSICAL PLANT INSPECTION OF AT&t BROADBAND CABLE IN TUSTIN, CALIFORNIA 1681 Brookshire Drive No ground 1832 Brookshire Drive No ground, unsecured wiring 143 C Street No ground, wiring issues, workmanship I.~ ATTACHMENT PAGE 12 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA 148 C Street Drop attached to power mast, grounded to power mast. Insufficient clearance from power. Wiring mn across roof. 17762 Miller Street Pedestal not set to proper grade, not secured I.~ ATTACHMENT PAGE 13 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIfORNia 17682 Miller Street Not grounded, wiring not secured 17662 Sherbrook Drive Example of"RockPed" used in some locations at owner's expense 17502 Via Como Drive (Townhouse Complex) No visible ground on any of the units. Wiring enters garage units behind exterior molding and connects to prewire inside of garage unit. l.~ ATTACHMENT PAGE 14 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA 13661 Farmington, #1 drop is grounded to a ground rod; #2 drop is not running in as straight a line as practical; #3 the workmanship is poor, the ground block is floating. I.~ ATTACliMENT PAGE 15 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA 13701 Farmington, Cracked vault lid I.~ ATTACIIMENT PAGE 16 PHYSICAL PLANT INSPECTION Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA 13731 Farmington, drop grounded to a ground rod and loose wire 14~ ATTACHMENT PAGE 17 PHYSICAL PLANT INSPECTION OF AT&t BROADBAND CABLE IN TUStlN, CALifORNia Intersection of Farmington and Bryan Avenue, cable interference with light standard. I,~ ATTACHMENT PAGE 18 PHYSICAL PLANT INSPECTION Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Bryan Avenue north of Browning Avenue,/ti interference with telco, the cable TV fiber splice, is interfering with the telco trunk; #2 use of duct tape and duct tape to hold the fiber up to the pole. I.~ ATTACttMENT PAGE 19 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA 13151 Wickshire, grounded to gas I.~ ATTACHMENT PAGE 20 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA 13151 Wickshire, loose CIC duct (trip hazard) I.~ ATTACHMENT PAGE 21 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA 13192 Wickshire, cracked vault lid, trip hazard I,~ ATTACHMENT PAGE 22 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA 1209 First Street, open pedestal, not set I.~ ATTACHMENT PAGE 23 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Rear of 245 Preble, behind City Hall, MDU, conflict with power at the service head. I*~ ATTACI-[MENT PAGE 24 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA 237 Preble, drop not grounded. Poor workmanship, loose cables IATTACHMENT PAGE 25 PHYSICAL PLANT INSPECTION OF At&T BROADBAND CABLE IN TUSTIN, CalifORnia 225 Preble, conflict with telco, clearance prior to the attachment on the same attachment. la,~ ATTACHMENT PAGE 26 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN tustiN, CalifORnia 329 Preble, drop not grounded. Note that there is a drop coming across the roof, then there is a second drop. I.~ ATTACHMENT PAGE 27 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA 178 Preble Drive, #1 drop attaches to the riser above the roof line, #2 drop is grounded to the riser above the roof line I*~ ATTACHMENT PAGE 28 PHYSICAL PLANT INSPECTION OF At&T BROADBAND CABLE IN TUSTIN, CALIFORNIA 13702 Farmington Road, shows #1 an ungrounded drop, #2 cable on top of the roof. <Balance of page intentionally left blank> I.~ ATTACHMENT PAGE 29 PHYSICAL PliANT INSPECTION Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Attachment 2: About the .Inspectors A2 STATEMENT OF QUALIFICATIONS AND EXPERIENCE JONATHAN L. KRAMER, JD, FSCTE, FIAE Licensed by the Federal Communications Commission (General Radiotelephone Operator License PG-11-35289, with Ship Radar Endorsement) (Previously licensed as a Second Class Radio Telephone Operator, September 1975; First Class Radio Telephone Operator, November 1977; General Radiotelephone Operator License, June 1987) Licensed by the Federal Communications Commission as an amateur radio operator since November 1970; currently licensed as an Advanced Class operator (KD6MR) Licensed by the State of California (CSLB C7 433113; licensed since December 1982) Former National Board of Directors member, National Association of Telecommunications Officers and Advisors (NATOA), an affiliate of the National League of Cities (Terms: 1997-2000, 1992-1994) Former Co-chair of National Technical Standards Committee appointed by NATOA, National League of Cities, and US Conference of Mayors to develop the national technical standards for cable television systems adopted by the FCC in February 1992 NATOA's 1997 Member of the Year (honored for information delivery to NATOA members) NATOA's 1991 Member of the Year (honored for achievements in developing and negotiating national cable television technical standards) I,~ ATTACHMENT PAGE 30 PHYSICAL PLANT INSPECTION OF at&t BROADBAND CABLE IN TUSTIN, CALIfORNIa Former Co-chair of National Technical Standards committee appointed by NATOA, National League of Cities, and US Conference of Mayors to develop the national technical standardized testing manual to determine compliance with the FCC rules Senior Member of Society of Cable Telecommunications Engineers (Senior Member since April 1993; Member since 1981) Fellow, Institute for the Advancement of Engineering (FIAE) (Nominated by Institute of Electrical and Electronics Engineers) Member, International Right of Way Association Witness before the FCC in Cable TV re-regulation hearings, March 1990, representing NATOA, et al Right-of-Way engineering and management expertise related to telecommunications networks and radio communications siting Testifying expert witness in federal and state court cases Technology speaker at every NATOA National Conference since 1988; Technology speaker at many regional and local NATOA meetings Communications technology speaker at Society of Cable Telecommunications Engineers conferences and cable industry conferences Published author of book and magazine articles on communications technology, plant safety, construction, and administration Cable system engineering and technical management experience six years before forming firm; Chief Technician, Technical Manager, Regional Engineer. Former Field Engineering Representative for Motorola Communications and Electronics, Area F Program Management team -- Areas of experience include microwave radio; baseband RF and audio; digital signaling; UHF and VHF two-way radio (including high stability Simulcast® radio operations); telephony; and command and control communications. Undergraduate education at CSUN, UCLA, LATTC, and WLAC; AS Degree in Radio Communications (with honors), Los Angeles Trade Technical College; currently enrolled in Abraham Lincoln University School of Law (JD program) The following is a partial list of the communities and agencies Mr. Kramer is serving, or has served, since 1984. Federal Agencies National Associations States Federal Communications Commission U.S. Department of Justice National Association of Telecommunications Officers and Advisors Society of Cable Telecommunications Engineers United States Attorney; Los Angeles United States Army; Ft. Irwin, CA U.S. Marine Corps; Twentynine Palms, CA U.S. Navy; Postgraduate School, Monterey, CA I.~ ATTACIiMENT PAGE 31 PHYSICAL PLANT INSPECTION Of At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA United States Conference of Mayors National Association of Counties National League of Cities State of Michigan Public Utilities Commission State of Connecticut Department of Public Utility Control Communities Aiken County, South Carolina Alcoa, Tennessee Anaheim, CA Avon, Ohio Austin, Texas Azusa, CA Bellbrook, Ohio Berkeley, CA Beverly Hills, CA Big Bear Lake, CA Blount County, Tennessee Bronxville, New York Buffalo Grove, Illinois Calabasas, CA Canton, Michigan Capitola, CA Centerville, Ohio Chelan, Washington ChiNo, CA Chula Vista, CA Cleveland Heights, Ohio Colton, CA Cypress, CA Darien, Illinois City/County of Denver, Colorado Deerfield Beach, Florida Diamond Bar, CA Downers Grove, Illinois Duarte, CA Eagan, Minnesota Eastchester, New York Escondido, CA Flora, Illinois Fort Wayne, Indiana Franklin, Kentucky Fremont, CA Fullerton, CA Garden Grove, CA Gardena, CA Germantown, Ohio Glendale, CA Glen Ellyn, Illinois Greenville, Illinois Hermosa Beach, CA Hidden Hills, CA Highland Park, Illinois Hoffman Estates, Illinois Homewood, Alabama Homewood, Illinois Indian Wells, CA Irvine, CA Kettering, Ohio Lake County, Illinois Lake County, Indiana La Mesa, CA La Quinta, CA Laguna Beach, CA Lompoc, CA Los Alamos, CA Los Altos, CA Los Angeles, CA Los Angeles County, CA Lynchburg, Virginia Malibu, CA Maryville, Tennessee Merrillville, Indiana Monterey County, CA Miamisburg, Ohio Munster, Indiana New Martinsville, WV New Orleans, Louisiana Newton Falls, Ohio Oakwood, Ohio Ojai, CA Olean, New York Opelika, Alabama Orange County, CA Oxnard, CA Paris, Illinois Park Forest, Illinois Peoria County, Illinois Piqua, Ohio Plymouth, Michigan Portland, Oregon Poway, CA Port Townsend, WA Redondo Beach, CA Rialto, CA Richmond, CA Riverside, CA Rochester, Minnesota Rolling Meadows, Illinois Roseville, Minnesota San Bemardino County, CA San Clemente, CA San Diego County, CA San Francisco, CA San Juan Capistrano, CA San Luis Obispo, CA San Luis Obispo County, CA San Marcos, CA Santa Ana, CA Santa Barbara County, CA Santa Clara, CA Santa Cruz County, CA Santa Maria, CA Santa Monica, CA Sistersville, West Virginia Solon, Ohio Spokane, Washington Springboro, Ohio St. Louis, Missouri Stevens Point, Wisc. Thousand Oaks, CA Tipp City, Ohio Troy, Ohio Tuckahoe, New York Tucson, Arizona Victoria, Texas West Allis, Wisconsin West Carrollton, Ohio West Covina, CA West Frankfort, Illinois West Milton, Ohio West Hollywood, CA Wheaton, Illinois White Plains, New York Willmette, Illinois Yorba Linda, CA I.~ ATTAClfMENT PAGE 32 PHYSICAL PLANT INSPECTION Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Universities, Colleges, School Districts University of Alabama Pepperdine University Orange Coast College Rancho Santiago College Centralia School District Oxnard Union School District Litigation GTE MobileNet v. City and County of San Francisco (Expert witness for City and County) Playboy Enterprises v. US (Expert witness for US DOJ and FCC) US Cellular v. Peoria County (Expert Witness for Peoria County) Jones Intercable v. Chula Vista (Expert Witness for City of Chula Vista) West Covina v. Charter Communications (Expert Witness for City of West Covina) Sierra East Television v. Westar Cable (Expert witness for Sierra East Television) Booth American v. US (Expert witness for US DO J) D. B. Cable v. Kalma Busk (Expert witness for Kalma Busk) Selected Lectures International Right of Way Association Washington Association of Cities NATOA National Conference (Every conference since 1988) NATOA Southem Califomia and Nevada Chapter (Multiple Presentations) NATOA Illinois Chapter (Multiple presentations) NATOA Minnesota Chapter NATOA Texas Chapter Society of Cable Telecommunications Engineers National Engineering Conference Society of Cable Telecommunications Engineers (Multiple Chapters) I.~ ATTACHMENT PAGE 33 PHYSICAL PLANT INSPECTION OF AT&t BROADBAND CABLE IN TUSTIN, CALIFORNIA STATEMENT OF QUALIFICATIONS AND EXPERIENCE STEVEN C. ALLEN, BCE 7/01 to Present Kramer. Firm, Inc. Senior Broadband Technologist Broadband and cable system inspection specialist; RF technology. Reports directly to and under the supervision of Jonathan L. Kramer, Kramer. Firm's Principal. 5/00 to 7/01 Cisco Systems, lnc Consulting System Engineer (CSE) Cable and Wireless Business Provided technical expertise and industry knowledge to the development and sale of broadband cable modems, Cable Modem Termination Systems (CMTS), video products, and wireless Intemet products. Prepared and delivered focused product training and presentations to internal work groups and Cisco customers. Assisted in the development of specifications and features of next generation Cisco products and worked with customer account teams on product evaluations or deployments. Worked with local Account Managers and System Engineers to resolve specific operational problems at customer locations. Providing feedback to manufacturing or product development on requirements or improvements to products. Provided training to customer staff on Cisco products. Provided RF/HFC experience and industry knowledge to Cisco sales and marketing departments to better acquaint them with the broadband cable industry. (Industry point of view). Leveraged extensive vendor contacts to provide information and possible solutions to specific product development requirements. 11/98 to 5/2000 TVC Communications, Inc Westem Regional Sales Engineer: Responsible for technical sales and training support to major Broadband providers including CATV, Telco, Manufacturing, Broadcast and Satellite networks in California and Nevada. Sales Engineer for 2nd largest broadband distributor in USA. Specializing in complex headend and outside plant products. Primary product lines include Tektronix analog and digital test equipment, Motorola Optical and HFC Distribution equipment, fiberoptic splicing and termination systems, including enclosures, fusion splicers, fiber management systems. Work closely with regional account managers to assist in product specifications, RFP's, training related needs and hands-on training for customer staff. Assist in identification of system needs, and design solutions based on offered products and services. IATTACHMENT PAGE 34 PHYSICAL PLANT INSPECTION OF aT&t BROADBAND CABLE IN TUSTIN, CALIFORNIA 12/95 to 11/98 Roseville Telephone Company Broadband Systems Engineer: Working in a combined Broadband/Telco environment, helped implement one of the first experiments in Fiber to the Curb (FTTC) architecture in Del Webb's Sun City development in Roseville, California. Responsible for design and implementation of new centralized network powering system, HFC design review, network monitoring system for system power, new product and technology evaluations, staff training, and Broadband overviews for management. Directly involved in mapping and conducting signal surveys in the Sacramento area for wireless PCS coverage. I worked with several right-of-way contractors and Lucent, to secure cellular and co-locate sites for network build-out. 12/86-12/95 Jones lntercable, lnc. System Engineering Manager: Responsible for all aspects of inside and outside plant for cable television system serving Roseville, California. Supervised staff of 15 installers, technicians and construction personnel. Designed and implemented new office building telecommunications services and placement. Designed and implemented new CATV headend encompassing towers, satellite receiving dishes, central grounding network, data services. Coordinated cutover from old headend and services to all new facilities. Designed and installed first fiberoptic CATV network in the Sacramento area employing a Cable Area Network design devised by Jones Intercable. Worked with other departments to insure that system goals and business plans were met. Administered OSHA/CALOSHA Hazmat/Hazcom program. Provided temporary engineering support and management supervision to related Jones Intercable business units in other areas of Northern California. 1/85 to 12/86 Viacom Cablevision Headquarters Corporate Staff Engineer: Responsible for technical support for home terminal products and converter repair facilities at Viacom systems in USA. Provided staff assistance at system level to resolve technical difficulties beyond scope of local personnel. Worked with product vendors to develop solutions to technical problems. Assisted corporate purchasing department in developing cost effective alternatives to vendor provided services or materials. 10/82 to 1/85 Viacom Cablevision- North Bay Region Regional Systems Engineer: Responsible for all headends, microwave systems, and FCC liaison for systems in North Bay region including San Rafael, Petaluma, Napa, Pinole, Crockett, and Rodeo. Supervised and supported a crew of 4 headend technicians in maintaining headend equipment including off-air processors, FM, AML microwave, FM terrestrial microwave, Satellite TVRO and Fiberoptic links. Also responsible for overseeing Viacom plant training program and coordinating activities of regional plant trainer. Additional responsibilities included Regional Engineer for the Bay Area Interconnect, a microwave trunk system delivering advertiser supported satellite programming to 500 thousand cable subscribers in the greater San Francisco Bay area. 6/79 to 10/82 Viacom Cablevision Chief Technician: Responsible for operation of system plant in Oroville, Paradise, Colusa, Gridley and Biggs, California. Supervise a crew of 4 system technicians. Maintain 6 headends with AML microwave transmitters and receivers, satellite TVRO, FM Microwave, processors, antennas and associated equipment. I.~ ATTACHMENT PAGE 35 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA · 1/79-6/79 Nor-Cai Cablevision System Technician: Responsible for system maintenance on distribution and house drop level. Perform routine service calls in response to customer requests. 2/78 to 12/78 CaI-Com Systems Sales Engineer: Design and market mobile communications systems for RCA Mobile Communications Division in the San Francisco Bay Area. 1/76 to 1/78 Concord TV Cable (A unit of Western Communications) Construction Technician: Duties involved construction and proof of new overhead and underground cable plant. Construction leader during complete rebuild of Concord system in 1977. Promoted to Field Technical Supervisor for rebuild. Also involved in production work for local origination department. 6/75 to 1/76 United States Air Force Reserve Basic Training 6/73 to 6/75 State TV Cable (A unit of Western Communications) Construction Lineman: Duties involved construction of new overhead and underground plant. Construction lineman for complete electronics change out for CATV franchises in Willows, Coming and Orland, California 6/70 to 6/73 Concord TV Cable (A unit of Western Communications) Installer: Duties included installation of customer premises and other duties as assigned. Education: 9/73 - 5/75 California State University Chico, Chico, California BA degree, Telecommunications 9/71 - 5/72 San Diego State University, San Diego, California Undergraduate work, Broadcasting 9/69 - 6/71 Diablo Valley College, Pleasant Hill, California Associate of Arts Degree, General Education emphasis on Broadcasting Professional Associations: Society of Cable Telecommunications Engineers (SCTE) 1991 National Member of the Year Elevated to Senior Member in 1991 1979 to Present SCTE Offices held: SCTE Region 1 National Director (CA, NV,HI) SCTE Western Vice Chairman SCTE Executive Committee member Vice President, Sierra Chapter, SCTE serving Sacramento Member, SCTE National Planning Committee Member, SCTE BCT/E Industry Certification Committee. Chairman, SCTE Northern California Vendors Day 1999 to Present 2001 to 2002 2001 to 2002 1989 to Present 1993 to Present 1993 to Present 1991 To Present I,~ ATTACIIMENT PAGE 36 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA National Cable Television Association Member, Cable Pioneers Club, Class of 93 Credentials: FCC General Class Radiotelephone License; prior licensed as a Second Class General Radiotelephone License (continuously licensed since 1980) SCTE Broadband Certified Engineer (BCE); continually certified since 1988 FCC Amateur Radio Licensee (Call sign: KC6VCC; continuously licensed since 1991) Military Service: 1975-1981 USAF Reserve Law Enforcement Specialist. Chico, California Honor Graduate USAF Police Academy USN Reserve Avionics Technician. Alameda, California Honorably discharged May 1981 IATTACHMENT PAGE 37 FCC Proof of Performance Report Reviews: AT&T Broadband Cable In the City of Tustin, California May, 2002 KRAM ER. FI RM INCORPORATED TELECOMMUNICATIONS TECHNOLOGY COUNSEL FOR GOVERNMENTS AND PRIVATE INSTITUTIONS SINCE 1984 TEL +1 (310) 473 9900 FAX +1 (310) 473 5900 TOLL FREE (866) JKRAMER KRAMER@KRAMERFIRM.COM WWW. KRAMERFIRM.COM W~A/. CELLU LARPCS. COM 2001 S [~ARRINCTON STE 306 LOS ANC£LES, CALIFORNIA 90025-5379 Performed by Kramer. Firm, Inc. Los Angeles, California Subcontractor of Telecommunications Management Corp. Los Angeles, California PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA FCC Proof of Performance Report Reviews' AT&T Broadband in the City of TustJn, California TABLE OF CONTENTS SECTION DESCRIPTION PAGE A INTRODUCTION A-1 FINDINGS B-1 CONCLUSIONS AND RECOMMENDATIONS C-1 ATTACHMENTAI' FCC RULES ATTACHMENT A2' ABOUT THE AUTHOR <Balance of page intentionally left blank> PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA FCC Proof of Performance Report Reviews' AT&T Broadband in the City of Tustin, California Introduction A At the direction of the City of Tustin ("City"), Kramer. Firm, Inc. (subcontractor of Telecommunications Management Corp.) has conducted an inspection of the FCC- required~ Proof of Performance (POP) reports for the cable television system within the City operated by AT&T Broadband ("AT&T"). The FCC requires all cable operators with at least 1,000 subscribers to conduct a battery of tests and record the results to demonstrate the extent to which the cable system complies with the FCC signal quality rules.2 Our review covers the following periods: Proof Period 1. Winter, 2002 2. Summer, 2001 3. Winter, 2001 4. Summer, 2000 Test Dates (According to AT&T Broadband) January 14, 2002 through January 21, 2002 July 13,2001 through July 25,2001 January 2, 2001 through January 31,2001 July 1, 2000 through July 31, 2000 Jonathan L. Kramer, FIAE of KRAMER.FIRM conducted these reviews of AT&T's POP tests reports. Mr. Kramer's qualifications to conduct these reviews may be reviewed at Attachment A2 of this report. Mr. Kramer served as the government-side Co-Chair of the Joint Task Force on Technical Standards that negotiated the bulk of the technical standards and testing issues later adopted in large part by the FCC as the national technical standards for picture quality and testing matters.3 We note that AT&T Broadband was initially unresponsive in providing copies of the POP reports and other requested system data. Apparently, AT&T's government relations staff has determined that AT&T will generally not respond to the City's information requests. Nearly four months after the original request for production of documents, ~ See 47 CFR 76.601 at Attachment A1 2 See 47 CFR 76.605 at Attachment A1 3 The cable industry was represented by the National Cable Television Association through the industry Co-Chair of the Joint Task Force, Mr. Wendell Bailey. PAGE A1 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA AT&T did eventually agree to arrange to have copies of the requested POP reports made, so long as the City would pay'for those copies.4 In roughly 18 years of working with hundreds of cable systems, including other AT&T cable systems, this is the only system where the cable operator determined that the local franchising authority should pay for the copies of the reports. Interestingly, even after charging Tustin for the copies of these reports, an AT&T cable system elsewhere in California provided similar proof reports at no cost to another local franchisor. Notwithstanding the apparent decision made at the management level to deny the bulk of the information request and to charge the City of Tustin for the POP report copies, we are pleased to note that Mr. Gregg Alfredson, AT&T's Network Engineer was instrumental in having the POP copies promptly reproduced and delivered once authorized by AT&T's management. <Balance of page intentionally left blank> 4 The cost paid to an outside copy vendor for the reports was $182.45. PAGE A2 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Findings B Our findings regarding AT&T's compliance is that AT&T failed to demonstrate full compliance with the FCC rules for all required elements. Specifically: AT&T failed to select test point locations that are balanced to represent all geographic areas of the areas served by its cable system. As required by 47 CFR 76.601(b)(1), "The proof-of-performance test points chosen shall be balanced to represent all geographic areas served by the cable system." (Emphasis added.) As may be seen by reviewing the location maps provided with the POP reports, six of the seven test points are located along or immediately adjacent to Newport Boulevard. Portions of the franchise area, especially including the northeast and eastern portions of the franchise were not tested. This failure propagates through the following POP reports' a. Summer 2000; and b. Winter 2001; and c. Summer 2001; and d. Winter 2002. 2. AT&T failed to provide information to demonstrate that its system complies with the 6 month level stability requirements of 47 CFR 76.605(a)(4), which requires that a cable operator demonstrate that "The visual signal level on each channel, as measured at the end of a 30 meter cable drop that is connected to the subscriber tap, shall not vary more than 8 decibels within any six-month interval..." This failure propagates through the following POP reports: PAGE B 1 ao bo do PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA SUmmer 2000, where AT&T claims'that a software change prevented it from addressing compliance with the requirement. This argument fails as AT&T could have manually added and analyzed the data from its previous POP report. It is not the responsibility of the City (or, for that matter, the FCC) to determine whether AT&T complied with this rule by performing its own analysis across multiple POP reports. Winter 2001, where AT&T once again claims that a software change prevented it from addressing compliance with the requirement. As before, this argument fails as AT&T could have manually added and analyzed the data from its previous POP report. Summer 2001, where AT&T prospectively states, "Hard drive failure will result in failure of the FCC-mandated, 6-month interval testing." Note, however, that elsewhere in the report, AT&T asserts that the failure to provide 6 month data is due to test point relocation. These arguments are internally inconsistent, and render the underlying report unreliable. Winter 2002, where AT&T does not provide the information required, but is silent as to why that data is missing. Silence is no excuse for failing to clearly provide the data as AT&T could (and should) have manually added and analyzed the data from its previous POP report. AT&T failed to provide information to demonstrate the specific dates and times of the testing of its cable system as required by 47 CFR 76.601(b)(3), which says in part, "...The visual signal level on each channel shall be measured and recorded, along with the date and time of the measurement, once every six hours (at intervals of not less than five hours or no more than seven hours after the previous measurement), to include the warmest and the coldest times, during a 24-hour period in January or February and in July or August." This failure propagates through the following POP reports: a. Summer 2000; and b. Winter 2001; and PAGE B2 PROOF OF PERFORMANCE REVIEW Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA c. Summer 2001; and d. Winter 2002. Interestingly, in the Winter, 2002 POP tests, AT&T lists certain 24-hour measurements as occurring in September, 2002. This, of course, further erodes any residual credence which might have been given to this particular POP report. Finally, due to the scrambling system employed by AT&T in its Tustin systems, AT&T admits that the carrier level measurements reported in each of the four reviewed POP reports are not truly representative of the actual signal levels. AT&T does provide an engineering statement regarding the measurement discrepancies. What AT&T omits is that it was possible to turn off its scrambling system for some or all of the carrier level tests (especially those tests conducted overnight) to permit the collection of accurate data. Thus, AT&T has failed to provide accurate data when it had the opportunity to do so. Moreover, because of the scrambling system AT&T uses in this system, its system technicians and installers cannot make reliable day-to-day carrier level measurements on many of the system channels. Due to the types and number of repeating failures, noted above, we do not attempt to analyze other data contained in each of the four reports. To do so would be to lend credibility and infer an air of reliability to what are clearly non-compliant and flawed reports. <Balance of page intentionally left blank> And, according to information received from AT&T, in its Sunland, California system, but nowhere else in this region. PAGE B3 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Conclusions & Recommendations C Based on our review of the POP reports finally provided by AT&T, we reach the following conclusions and offer the following recommendations: Conclusions AT&T has failed to demonstrate that it has conducted FCC-required proof of performance tests for the periods of Summer, 2000 through Winter, 2002 (a total of 4 reporting periods), in accordance to FCC requirements. 2. The POP reports as provided are internally inconsistent, and/or missing FCC- required data. 3. The test point selection methodology fails to comply with the FCC requirements. 4. Inasmuch as POP tests are required by the FCC to be performed within a specific time frame, AT&T cannot now cure the failures in the existing reports. Recommendations We recommend that due to the gross failures identified above, the data contained in what AT&T purports to be its FCC Proof of Performance tests be judged to be unreliable, and not compliant with the FCC rules. . The City should place AT&T on notice that it has not conducted its FCC-required proof testing as required by the FCC rules and further direct AT&T to review its entire POP procedures to insure, going forward, that AT&T complies with all of the FCC requirements in both the data collection, and the data reporting. . The City should required AT&T to provide a written corrective action plan clearly identifying how it will insure that future POP tests will be conducted and reported in a manner which is fully compliant with the FCC rules. <Balance of page intentionally left blank> PAGE C 1 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA . Finally, the City should require AT&T to promptly provide copies of its full POP reports to the City for at least the next two reporting periods to permit the City to determine whether AT&T's system meets the FCC requirements, and (should the City adopt the recommendations here) the City's compliance requirements. <End of Report - Attachments Follow> <Balance of page intentionally left blank> PAGE C2 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Attachment 1: FCC Rules A1 This attachment contains the full text of the FCC proof of performance and signal quality rules. § 76.601 Pertbm~ance tests (a) The operator of each cable television system shall be responsible for insuring that each such system is designed, installed, and operated in a manner that fully complies with the provisions of this subpart. (b) The operator of each cable television system shall conduct complete performance tests of that system at least twice each calendar year (at intervals not to exceed seven months), unless otherwise noted below. The performance tests shall be directed at determining the extent to which the system complies with all the technical standards set forth in § 76.605(a) and shall be as follows: (1) For cable television systems with 1000 or more subscribers but with 12,500 or fewer subscribers, proof-of-performance tests conducted pursuant to this section shall include measurements taken at six (6) widely separated points. However, within each cable system, one additional test point shall be added for every additional 12,500 subscribers or fraction thereof (e.g., 7 test points if 12,501 to 25,000 subscribers; 8 test points if25,001 to 37,500 subscribers, etc.). In addition, for technically integrated portions of cable systems that are not mechanically continuous (i.e., employing microwave connections), at least one test point will be required for each portion of the cable system served by a technically integrated microwave hub. The proof-of-performance test points chosen shall be balanced to represent all geographic areas served by the cable system. At least one-third of the test points shall be representative of subscriber terminals most distant from the system input and from each microwave receiver (if microwave transmissions are employed), in terms of cable length. The measurements may be taken at convenient monitoring points in the cable network: Provided, that data shall be included to relate the measured performance of the system as would be viewed from a nearby subscriber terminal. An identification of the instruments, including the makes, model numbers, and the most recent date of calibration, a description of the procedures utilized, and a statement of the qualifications of the person performing the tests shall also be included. (2) Proof-of-performance tests to determine the extent to which a cable television system complies with the standards set forth in § 76.605(a) (3), (4), and (5) shall be made on each of the NTSC or similar video channels of that system. Unless otherwise as noted, proof-of-performance tests for all other standards in § 76.605(a) shall be made on a minimum of four (4) channels plus one additional channel for every 100 MHz, or fraction thereof, of cable distribution system upper frequency limit (e.g., 5 channels for cable television systems with a cable distribution system upper frequency limit of 101 to 216 MHz; 6 channels for cable television systems with a cable distribution system upper frequency limit ATTACHMENT PAGE 1 PROOF Of PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA of 217300 MHz; 7 channels for cable television systems with a cable distribution upper frequency limit to 300 to 400 MHz, etc.). The channels selected for testing must be representative of all the channels within the cable television system. (3) The operator of each cable television system shall conduct semi-annual proof-of-performance tests of that system, to determine the extent to which the system complies with the technical standards set forth in § 76.605(a)(4) as follows. The visual signal level on each channel shall be measured and recorded, along with the date and time of the measurement, once every six hours (at intervals of not less than five hours or no more than seven hours after the previous measurement), to include the warmest and the coldest times, during a 24-hour period in January or February and in July or August. (4) The operator of each cable television system shall conduct triennial proof-of-performance tests of its system to determine the extent to which the system complies with the technical standards set forth in § 76.605(a)(11). (c) Successful completion of the performance tests required by paragraph (b) of this section does not relieve the system of the obligation to comply with all pertinent technical standards at all subscriber terminals. Additional tests, repeat tests, or tests involving specified subscriber terminals may be required by the Commission or the local franchiser to secure compliance with the technical standards. (d) The provisions of paragraphs (b) and (c) of this section shall not apply to any cable television system having fewer than 1,000 subscribers: Provided, however, that any cable television system using any frequency spectrum other than that allocated to over-the-air television and FM broadcasting (as described in § § 73.603 and 73.210 of this chapter) is required to conduct all tests, measurements and monitoring of signal leakage that are required by this subpart. A cable television system operator complying with the monitoring, logging and the leakage repair requirements of § 76.614, shall be considered to have met the requirements of this paragraph. However, the leakage log shall be retained for five years rather than the two years prescribed in § 76.1706. Note 1: Prior to requiring any additional testing pursuant to § 76.601(c), the local franchising authority shall notify the cable operator who will be allowed thirty days to come into compliance with any perceived signal quality problems which need to be corrected. The Commission may request cable operators to test their systems at any time. Note 2: Section 76.1717 contains recordkeeping requirements for each system operator in order to show compliance with the technical rules of this subpart. Note 3: Section 76.1704 contains recordkeeping requirements for proof of performance tests. <Balance of page intentionally left blank> ATTACHMENT PAGE 2 PROOF OF PERFORMANCE REVIEW Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA §76.605 Teclmical standards (a) As of December 30, 1992, unless otherwise noted, the following requirements apply to the performance of a cable television system as measured at any subscriber terminal with a matched impedance at the termination point or at the output of the modulating or processing equipment (generally the headend) of the cable television system or otherwise as noted. The requirements are applicable to each NTSC or similar video downstream cable television channel in the system: (1) (i) The cable television channels delivered to the subscriber's terminal shall be capable of being received and displayed by TV broadcast receivers used for off-the-air reception of TV broadcast signals, as authorized under part 73 of this chapter; and (ii) Cable television systems shall transmit signals to subscriber premises equipment on frequencies in accordance with the channel allocation plan set forth in the Electronics Industries Association's "Cable Television Channel Identification Plan, EIA IS-132, May 1994" (EIA IS- 132). This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 522(a) and 1 CFR Part 51. Cable systems are required to use this channel allocation plan for signals transmitted in the frequency range 54 MHz to 1002 MHz. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 522(a) and 1 CFR Part 51. Copies of EIA IS-132 may be obtained from: Global Engineering Documents, 2805 McGraw Ave., Irvine CA 92714. Copies of EIA IS-132 may be inspected during normal business hours at the following locations: Federal Communications Commission, 1919 M Street, NW, Dockets Branch (Room 239), Washington, DC, or the Office of the Federal Register, 800 North Capitol Street, NW., suite 700, Washington, DC. This requirement is applicable on May 31, 1995, for new and re-built cable systems, and on June 30, 1997, for all cable systems. (2) The aural center frequency of the aural carder must be 4.5 MHz +/- 5 kHz above the frequency of the visual carder at the output of the modulating or processing equipment of a cable television system, and at the subscriber terminal. (3) The visual signal level, across a terminating impedance which correctly matches the intemal impedance of the cable system as viewed from the subscriber terminal, shall not be less than 1 millivolt across an intemal impedance of 75 ohms (0 dBmV). Additionally, as measured at the end of a 30 meter cable drop that is connected to the subscriber tap, it shall not be less than 1.41 millivolts across an internal impedance of 75 ohms (+3 dBmV). (At other impedance values, the minimum visual signal level, as viewed from the subscriber terminal, shall be the square root of0.0133(z) millivolts and, as measured at the end of a 30 meter cable drop that is connected to the subscriber tap, shall be 2 times the square root of 0.00662(z) millivolts, where Z is the appropriate impedance value). (4) The visual signal level on each channel, as measured at the end of a 30 meter cable drop that is connected to the subscriber tap, shall not vary more than 8 decibels within any six-month interval which must include four tests performed in six-hour increments during a 24-hour period in July or August and during a 24-hour period in January or February, and shall be maintained within: ATTACHMENT PAGE 3 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA (i) 3 decibels (dB) of the visual signal level of any visual carrier within a 6 MHz nominal frequency separation; (ii) 10 dB of the visual signal level on any other channel on a cable television system of up to 300 MHz of cable distribution system upper frequency limit, with a 1 dB increase for each additional 100 MHz of cable distribution system upper frequency limit (e.g., 11 dB for a system at.301-400 MHz; 12 dB for a system at 401-500 MHz, etc.); and (iii) A maximum level such that signal degradation due to overload in the subscriber's receiver or terminal does not occur. (5) The rms voltage of the aural signal shall be maintained between 10 and 17 decibels below the associated visual signal level. This requirement must be met both at the subscriber terminal and at the outputs of the modulating and processing equipment (generally the headend). For subscriber terminals that use equipment which modulate and demodulate the signal (e.g., baseband converters), the rms voltage of the aural signal shall be maintained between 6.5 and 17 decibels below the associated visual signal level at the subscriber terminal. (6) The amplitude characteristic shall be within a range of+/- 2 decibels from 0.75 MHz to 5.0 MHz above the lower boundary frequency of the cable television channel, referenced to the average of the highest and lowest amplitudes within these frequency boundaries. (i) Prior to December 30, 1999, the amplitude characteristic may be measured after a subscriber tap and before a converter that is provided and maintained by the cable operator. (ii) As of December 30, 1999, the amplitude characteristic shall be measured at the subscriber terminal. (7) The ratio of RF visual signal level to system noise shall be as follows: (i) From June 30, 1992, to June 30, 1993, shall not be less than 36 decibels. (ii) From June 30, 1993 to June 30, 1995, shall not be less than 40 decibels. (iii) As of June 30, 1995, shall not be less then 43 decibels. (iv) For class I cable television channels, the requirements of paragraphs (a)(7)(i), (a)(7)(ii) and (a)(7)(iii) of this section are applicable only to: (A) Each signal which is delivered by a cable television system to subscribers within the predicted Grade B contour for that signal; (B) Each signal which is first picked up within its predicted Grade B contour; (C) Each signal that is first received by the cable television system by direct video feed from a TV broadcast station, a low power TV station, or a TV translator station. ATTACHMENT PAGE 4 PROOF OF PERFORMANCE REVIEW Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA (8) The ratio of visual signal level to the rms amplitude of any coherent disturbances such as intermodulation products, second and third order distortions or discrete-frequency interfering signals not operating on proper offset assignments shall be as follows: (i) The ratio of visual signal level to coherent disturbances shall not be less than 51 decibels for noncoherent channel cable television systems, when measured with modulated carriers and time averaged; and (ii) The ratio of visual signal level to coherent disturbances which are frequency-coincident with the visual carrier shall not be less than 47 decibels for coherent channel cable systems, when measured with modulated carriers and time averaged. (9) The terminal isolation provided to each subscriber terminal: (i) Shall not be less than 18 decibels. In lieu of periodic testing, the cable operator may use specifications provided by the manufacturer for the terminal isolation equipment to meet this standard; and (ii) Shall be sufficient to prevent reflections caused by open-circuited or short-circuited subscriber terminals from producing visible picture impairments at any other subscriber terminal. (10) The peak-to-peak variation in visual signal level caused by undesired low frequency disturbances (hum or repetitive transients) generated within the system, or by inadequate low frequency response, shall not exceed 3 percent of the visual signal level. Measurements made on a single channel using a single modulated carrier may be used to demonstrate compliance with this parameter at each test location. (11) As of June 30, 1995, the following requirements apply to the performance of the cable television system as measured at the output of the modulating or processing equipment (generally the headend) of the system: (i) The chrominance-luminance delay inequality (or chroma delay), which is the change in delay time of the chrominance component of the signal relative to the luminance component, shall be within 170 nanoseconds. (ii) The differential gain for the color subcarrier of the television signal, which is measured as the difference in amplitude between the largest and smallest segments of the chrominance signal (divided by the largest and expressed in percent), shall not exceed +/- 20%. (iii) The differential phase for the color subcarfier of the television signal which is measured as the largest phase difference in degrees between each segment of the chrominance signal and reference segment (the segment at the blanking level of 0 IRE), shall not exceed +/-10 degrees. (12) As an exception to the general provision requiring measurements to be made at subscriber terminals, and without regard to the type of signals carried by the cable television system, signal leakage from a cable television system shall be measured in accordance with the procedures outlined in §76.609(h) and shall be limited as follows: ATTACHMENT PAGE 5 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Frequencies Signal leakage limit (microvolts/meter) Up to and include 54 MHz: 15 Over 54 up to and including 216 MHz: 20 Distance in meters(m) 30 3 (b) Cable television systems distributing signals by using methods such as nonconventional coaxial cable techniques, noncoaxial copper cable techniques, specialized coaxial cable and fiber optical cable hybridization techniques or specialized compression techniques or specialized receiving devices, and which, because of their basic design, cannot comply with one or more of the technical standards set forth in paragraph (a) of this section, may be permitted to operate: Provided, that an adequate showing is made pursuant to §76.7 which establishes that the public interest is benefited. In such instances, the Commission may prescribe special technical requirements to ensure that subscribers to such systems are provided with an equivalent level of good quality service. Note 1: Local franchising authorities of systems serving fewer than 1000 subscribers may adopt standards less stringent than those in §76.605(a). Any such agreement shall be reduced to writing and be associated with the system's proof-of-performance records. Note 2: For systems serving rural areas as defined in §76.5, the system may negotiate with its local franchising authority for standards less stringent than those in §§76.605(a)(3), 76.605(a)(7), 76.605(a)(8), 76.605(a)(10) and 76.605(a)(11). Any such agreement shall be reduced to writing and be associated with the system's proof- of- performance records. Note 3: The requirements of this section shall not apply to devices subject to the provisions of § § 15.601-15.626. Note 4: Should subscriber complaints arise from a system failing to meet §76.605(a)(6) prior to December 30, 1999, the cable operator will be required to provide a converter that will allow the system to meet the standard immediately at the complaining subscriber's terminal. Further, should the problem be found to be system-wide, the Commission may order all converters on the system be changed to meet the standard. Note 5: Should subscriber complaints arise from a system failing to meet §76.605(a)(10), the cable operator will be required to remedy the complaint and perform test measurements on §76.605(a)(10) containing the full number of channels as indicated in §76.601(b)(2) at the complaining subscriber's terminal. Further, should the problems be found to be system-wide, the Commission may order the full number of channels as indicated in §76.601(b)(2) be tested at all required locations for furore proof-of-performance tests. Note 6: No State or franchising authority may prohibit, condition, or restrict a cable system's use of any type of subscriber equipment or any transmission technology. § 76.1704 Proof-of-pedbrmance test dam (a) The proof of performance tests required by § 76.601 shall be maintained on file at the operator's local business office for at least five years. The test data shall be made available for inspection by the Commission or the local franchiser, upon request. (b) The provisions of paragraph (a) of this section shall not apply to any cable television system having fewer than 1,000 subscribers, subject to the requirements of § 76.601 (d). I.~ ATTACIIMENT PAGE 6 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Note to § 76.1704: Ifa signal leakage log is being used to meet proof of performance test recordkeeping requirements in accordance with § 76.601, such a log must be retained for the period specified in § 76.601(d). § 76.1717 Compliance with technical standards Each system operator shall be prepared to show, on request by an authorized representative of the Commission or the local franchising authority, that the system does, in fact, comply with the technical standards rules in part 76, subpart K. Rules reproduced from Cable TV LawManager-Copyright © 1992-2002 etrok. Jackson Hole, WY. All Rights Reserved. http.'//www, etrok, com. Reprinted with permission. <Balance of page intentionally left blank> ATTACHMENT PAGE 7 PROOF Of PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA A2 Attachment 2: About the Author STATEMENT OF QUALIFICATIONS AND EXPERIENCE JONATHAN L. KRAMER, JD, FSCTE, FIAE Licensed by the Federal Communications Commission (General Radiotelephone Operator License PG-11-35289, with Ship Radar Endorsement) (Previously licensed as a Second Class Radio Telephone Operator, September 1975; First Class Radio Telephone Operator, November 1977; General Radiotelephone Operator License, June 1987) Licensed by the Federal Communications Commission as an amateur radio operator since November 1970; currently licensed as an Advanced Class operator (KD6MR) Licensed by the State of California (CSLB C7 433113; licensed since December 1982) Former National Board of Directors member, National Association of Telecommunications Officers and Advisors (NATOA), an affiliate of the National League of Cities (Terms: 1997-2000, 1992-1994) Former Co-chair of National Technical Standards Committee appointed by NATOA, National League of Cities, and US Conference of Mayors to develop the national technical standards for cable television systems adopted by the FCC in February 1992 NATOA's 1997 Member of the Year (honored for information delivery to NATOA members) NATOA's 1991 Member of the Year (honored for achievements in developing and negotiating national cable television technical standards) ATTACHMENT PAGE 8 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE tN TUSTIN, CALIFORNIA Former Co-chair of National Technical Standards committee appointed by NATOA, National League of Cities, and US Conference of Mayors to develop the national technical standardized testing manual to determine compliance with the FCC rules Senior Member of Society of Cable Telecommunications Engineers (Senior Member since April 1993; Member since 1981) Fellow, Institute for the Advancement of Engineering (FIAE) (Nominated by Institute of Electrical and Electronics Engineers) Member, International Right of Way Association Witness before the FCC in Cable TV re-regulation hearings, March 1990, representing NATOA, et al Right-of-Way engineering and management expertise related to telecommunications networks and radio communications siting Testifying expert witness in federal and state court cases Technology speaker at every NATOA National Conference since 1988; Technology speaker at many regional and local NATOA meetings Communications technology speaker at Society of Cable Telecommunications Engineers conferences and cable industry conferences Published author of book and magazine articles on communications technology, plant safety, construction, and administration Cable system engineering and technical management experience six years before forming firm; Chief Technician, Technical Manager, Regional Engineer. Former Field Engineering Representative for Motorola Communications and Electronics, Area F Program Management team -- Areas of experience include microwave radio; baseband RF and audio; digital signaling; UHF and VHF two-way radio (including high stability Simulcast® radio operations); telephony; and command and control communications. Graduate degree: Juris Doctor degree cum laude Abraham Lincoln University School of Law (2001); Undergraduate education at CSUN, UCLA, LATTC, and WLAC; AS Degree in Radio Communications (with honors), Los Angeles Trade Technical College. <Balance of page intentionally left blank> ATTACHMENT PAGE 9 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA The following is apartial list of the agencies and communities and agencies we are serving, or have served, since 1984. Federal Agencies National Associations States Federal Communications Commission U.S. Department of Justice National Association of Telecommunications Officers and Advisors Society of Cable Telecommunications Engineers United States Attorney; Los Angeles United States Army; Ft. Irwin, CA U.S. Marine Corps; Twentynine Palms, CA U.S. Navy; Postgraduate School, Monterey, CA United States Conference of Mayors National Association of Counties National League of Cities State of Michigan Public Utilities Commission State of Connecticut Department of Public Utility Control Communities Aiken County, SC Alcoa, TN Anaheim, CA Ansonia, CT Apache Junction, AZ Austin, TX Avon, CT Avon, OH Azusa, CA Barrington, IL Beacon Falls, CT Bellbrook, OH Belmont, CA Berkeley, CA Berlin, CT Bethany, CT Bethel, CT Beverly Hills, CA Big Bear Lake, CA Birmingham, AL Blount County, TN Bozrah, CT Branford, CT Brisbane, CA Bristol, CT Bronxville, NY Buffalo Grove, IL Burlington, CT Butte County, CA Calabasas, CA Calimesa, CA Canandaigual NY Canton, CT Canton, Michigan Capitola, CA Centerville, OH Chelan, WA Chester, CT Chino, CA Chula Vista, CA Cleveland Heights, OH Clinton, CT Colchester, CT Colton, CA Corona, CA Cypress, CA Danbury, CT Darien, IL Deep River, CT Deerfield Beach, FL Denver, CO Derby, CT Diamond Bar, CA Downers Grove, IL Duarte, CA Dubuque, IL Durham, CT Eagan, MN East Haven, CT East Lyme, CT East Milton, OH Eastchester, NY Eau Claire, WI Eden Prairie, MN Edina, MN Elburn, IL Elk Grove Village, IL Escondido, CA Essex, CT Farmington, CT Flora, IL Fort Wayne, IN Foster City, CA Franklin, CT Franklin, KY Fremont, CA Fullerton, CA Garden Grove, CA Gardena, CA Germantown, OH Glen Ellyn, IL Glendale, CA Greenville, IL Griswold, CT Guilford, CT Haddam, CT Half Moon Bay, CA Hamden, CT Hermosa Beach, CA Hidden Hills, CA Highland Park, IL Highland, CA Hoffman Estates, IL Homewood, AL Homewood, IL Hopkins, MN Indian Wells, CA Inver Grove Heights, MN Irvine, CA Kettering, OH Killingly, CT Killingworth, CT l.~ ATTACHMENT PAGE 10 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA La Mesa, CA La Quinta, CA Laguna Beach, CA Lake County, IL Lake County, IN Lilydale, MN Lisbon, CT Lompoc, CA Los Alamos, CA Los Altos, CA Los Angeles County, CA Los Angeles, CA Lynchburg, VA Madison, CT Malibu, CA Maryville, TN Mendota Heights, MN Mendota, MN Merrillville, IN Miamisburg, OH Middlebury, CT Millbrae, CA Minnetonka, MN Modesto, CA Monterey County, CA Montville, CT Mount Carmel, IL Mount Prospect, IL Mountain View, CA Munster, IN Naugatuck, CT New Britain, CT New Haven, CT New London, CT New Martinsville, WV New Orleans, LA Newton Falls, OH Niles, IL . North Aurora, IL North Branford, CT North Haven, CT Norwich, CT Oakwood, OH Ojai, CA Old Saybrook, CT Olean, NY Opelika, AL Orange County, CA Oxford, CT Oxnard, CA Paris, IL Park Forest, IL Peoria County, IL Pinal County, AZ Piqua, OH Plainfield, CT Plainville, CT Plymouth, CT Plymouth, MI Pocatello, ID Port Townsend, WA Portland, OR Poway, CA Preston, CT Prior Lake, MN Prospect, CT Putnam, CT Redondo Beach, CA Redwood City, CA Rialto, CA Richfield, MN Richmond, CA Ridgefield, CT Riverside, CA Rochester, MN Rolling Meadows, IL Roseville, MN San Bemardino County, CA San Carlos, CA San Clemente, CA San Diego County, CA San Diego, CA San Francisco, CA San Juan Capistrano, CA San Luis Obispo County, CA San Luis Obispo, CA San Marcos, CA San Mateo, CA San Mateo County, CA Santa Ana, CA Santa Barbara County, CA Santa Clara, CA Santa Cruz County, CA Santa Maria, CA Santa Monica, CA Savage, MN Seymour, CT Shelton, CT Sistersville, WV Solon, OH South St. Paul, MN Spokane, WA Sprague, CT Springboro, OH St. Louis, Missouri Sterling, CT Stevens Point, WI Sunfish Lake, MN Sunnyvale, CA Sutter County, CA Thousand Oaks, CA Tipp City, OH Torrance, CA Troy, OH Tuckahoe, NY Tucson, AZ Tustin, CA Ventura County, CA Victoria, TX Wallingford, CT Walnut Creek, CA Waterbury, CT Waterford, CT West Allis, WI West Carrollton, OH West Covina, CA West Frankfort, IL West Haven, CT West Hollywood, CA West Milton, OH West St. Paul, MN Westbrook, CT Wheaton, IL White Plains, NY Willmette, IL Wolcott, CT Yellow Springs, OH Yorba Linda, CA Yucaipa, CA I,~ ATTACHMENT PAGE I 1 PROOF OF PERFORMANCE REVIEW OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA ! Universities, Colleges, School Districts University of California, Los Angeles University of Alabama Pepperdine University Orange Coast College Rancho Santiago College Centralia School District Oxnard Union School District Litigation Adelphia Cable v. City of Thousand Oaks [and countersuit] (Expert witness for City) AT&T Wireless v. City of San Diego (Expert witness for City) GTE MobileNet v. City and County of San Francisco (Expert witness for City and County) Playboy Enterprises v. US (Expert witness for US DOJ and FCC) US Cellular v. Peoria County (Expert Witness for Peoria County) Jones Intercable v. Chula Vista (Expert Witness for City of Chula Vista) West Covina v. Charter Communications (Expert Witness for City of West Covina) Sierra East Television v. Westar Cable (Expert witness for Sierra East Television) Booth American v. US (Expert witness for US DO J) D. B. Cable v. Kalma Busk (Expert witness for Kalma Busk) Selected Lectures Law Seminars International International Right of Way Association Washington Association of Cities NATOA National Conference (Every conference since 1988) ' NATOA Southern California and Nevada Chapter (Multiple Presentations) NATOA Illinois Chapter (Multiple presentations) NATOA Minnesota Chapter NATOA Texas Chapter Society of Cable Telecommunications Engineers National Engineering Conference Society of Cable Telecommunications Engineers (Multiple Chapters) <End of Attachments> <Balance of page intentionally left blank> I.~ ATTACI-[MENT PAGE 12 Picture Quality Inspection' AT&T Broadband Cable In the City of Tustin, California May, 2002 KRAMER. FIRM INCORPORATED TELECOMMUNICATIONS TECHNOLOGY COUNSEL FOR GOVERNMENTS AND PRIVATE INSTITUTIONS SINCE 1984 TEL +1 (310) 473 9900 FAX +1 (310)473 S900 TOLL FREE (866) JKRAMER KRAMER@KRAMERFIRM.COM WV~V. KRAMERFIRM.COM W~/W. CELLULAR PCS. COM 2001 S BARRINGTON STE 306 LOS ANGELES, CALIFORNIA 90025-5379 Performed by Kramer. Firm, Inc. Los Angeles, California Subcontractor of Telecommunications Management Corp. Los Angeles, California PHYSICAL PLANT INSPECTION OF At&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Picture Quality Inspection of AT&T Broadband in the City of Tustin, California TABLE OF CONTENTS SECTION DESCRIPTION PAGE A INTRODUCTION AND EXECUTIVE OVERVIEW A-1 METHOD B-1 CONCLUSIONS, RECOMMENDATIONS AND CLOSING COMMENTS C-1 ATTACHMENT A 1: ATTACHMENT A2: ATTACHMENT A3: INSPECTION REPORT AND PHOTOGRAPHS FCC RULES ABOUT THE AUTHOR <Balance of page intentionally left blank> PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Picture Quality Inspection of AT&T Broadband in the City of Tustin, California Introduction and Executive Overview A At the direction of the City of Tustin, ("City"), Kramer. Firm, Inc. (subcontractor of Telecommunications Management Corp.) has conducted an inspection of the picture quality provided over the cable television plant system within the City operated by AT&T Broadband ("AT&T"). Jonathan L. Kramer, FIAE of KRAMER.FIRM conducted this inspection of AT&T's Tustin system on May 2, 2002. To collect the data reported here and to permit us to offer opinions regarding the overall system, Mr. Kramer directed AT&T to perform a series of tests, based on the FCC rules, in the Tustin system. Those tests were conducted under Mr. Kramer's direct supervision by AT&T's staff. AT&T was represented Gregg Alfredson, Network Engineer who coordinated and conducted the testing. He was directly assisted by the following AT&T staff: Headend Systems: Mike Marks, Network Operations Manager Eddie Ramirez, Network Operations Technician Ron Reiswig, Networks Operations Technician Field Plant Operations: Michael Perrizo, Field Operations Manager Willy Figueroa, Field Operations Supervisor William Bradley, System Technician James Jakel, System Technician Rafael Preciado, System Technician PAGE A1 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTiN, CALIfORNia The purpose of this inspection was to permit us to opine on whether AT&T's outside plant system complies with the tested parameters of the Federal Communications Commission rules found at 47 CFR 76 Subpart K. The following map identifies the location of the test points in the City. Tustin System Point Inspection Map Tes~ Point 6 · Test Point ? ,F~de de. Center Test Po~t l 311 1 F2 E 3P,.d St T,sl ?omt 3 13'/01 F~nao'alh Dr / Test Point 14661 Dartmouth '1 13692 J,~t ,Lemon: Test Point 4 1§01 Wimlsor I..n ,Iptine ~anoh Joaquin '~lle¥ Detailed test point maps and test point photographs are provided at Attachment A 1. <Balance of page intentionally left blank> ~ To insure that the data collected would be "as is" we did not identify the test point location areas to AT&T in advance of the testing. In order to balance the test point selection to prevent a claim of us picking known bad locations, once identified the test point areas, AT&T selected the exact test point location within several blocks of the area which we identified. IPA~E A2 O PHYSICAL PLANT INSPECTION OF AT&t BROADBAND CABLE IN TUSTIN, CALIFORNIA The site-specific inspection data and site photographs may be found in Attachment A 1 of this report. For the reasons set out below, and documented at Attachment Al, we conclude that this system has demonstrated compliance with the FCC rules of tested parameters. The FCC rules that establish the minimum acceptable standards for cable TV analog picture and sound quality are reproduced at Attachment A2.2 Our key finding is that AT&T was able to demonstrate full compliance with the FCC rules for all tested parameters (see below) at all test points. The qualifications of Mr. Kramer to conduct this inspection and produce this report on our findings are provided as Attachment A3 of this report. <Balance of page intentionally left blank> 2 Presently, there are no FCC technical standards for digital television. PAGE A3 PHYSICAL PLANT INSPECTION OF At&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Method B A location map of the test points we inspected is shown on the following page.3 Individual maps and identification photographs of each test point are included at Attachment Al, as well as the log of the objective findings on a per-test point basis. The following description is useful to help frame how television pictures arrive at AT&T's subscriber locations. Over the air and satellite channels are received in various locations and collected at AT&T's Costa Mesa headend, located at 200 Paularino Avenue. From the Costa Mesa headend, all television channels bound for Tustin are placed on a non-amplified 1550 nanometer fiber optic system connected to AT&T First Street facility in Tustin.4 There, the cable channels are re-modulated onto a non- amplified 1330 nanometer fiber optic system that connects with each of the fiber optic nodes within the City. At each node the television channels are, once again, re-modulated and placed on traditional coaxial cables connecting to individual subscriber locations within the City. Our code authority for this inspection are the FCC rules controlling the transmission of analog cable television channels found at 47 C.F.R. 76 Subpart K. Outside Plant Electrical Operations To establish the operating performance of the outside plant system, we directed AT&T to conduct a series of FCC parameter technical tests in its system at 7 test points, widely geographically distributed among AT&T's fiber optic nodes throughout the Tustin service area? (The specific locations are listed in Attachment A 1 to this report.) The table on the next page highlights specific FCC technical specifications found at 47 C.F.R. 76 Subpart K (the FCC rules and regulations) that we inspected. The complete technical standards are reproduced in full at Attachment A2. 3 The test point map was generated by using the waypoint capture function of a Garmin V Global Positioning System (GPS) satellite receiver (Serial number 93018827). The recorded position data was then downloaded and displayed on DeLorme Street Atlas 8.0 software, which created the map output. Note that due to the accuracy of the position data provided by civilian GPS receivers such as the Garmin listed above, the track plotted is approximate only, and the actual track may vary by upwards of 10 meters, although the error is typically about 5 meters or less. 4 The First Street facility formerly served as the headend for the Tustin area. Its present function is far more limited, and the externally visible equipment at this location appears to be deactivated. 5 We had originally requested that AT&T demonstrate its system to us at 12 locations, but this was rejected by AT&T's local governmental affairs representative. He later agreed to permit testing at 7 test points. PAGE B1 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Inspected FCC'Part 76 Subpart K Picture Quality Specifications FCC RULE PARAMETER LIMIT COMMENTS §76.605(a)(3) Minimum Signal 0 dBmV at the If the signal level falls below Level subscriber these levels, the subscriber may terminal; +3 have snowy pictures. Generally, dBmV at end of the larger this number, the 30-meter cable better the picture. §76.605(a)(4)(i) Signal Level 3 dB or less If this specification isn't Difference Between achieved, it may be difficult to Adjacent Channels view a channel due to interference from the higher powered adjacent channel. The smaller this number, the better the picture. §76.605(a)(4)(ii) Signal Level 12 dB for 401- If this specification isn't Difference Between 500 MHz cable achieved, then it may be Any Two Non- systems; 13 dB difficult to view a channel due adjacent channels for 501-600 to interference from a higher MHz cable powered non-adjacent channel. systems; The smaller this number, the 14 dB for 601- better the system performance. 700 MHz cable systems; 15 dB for 701- 800 MHz cable systems; 16 dB for 801-900 MHz cable systems. §76.605(a)(4)(iii) Maximum signal No fixed A signal level which is too high level number; "A will cause distortions in the maximum level picture which can appear as such that signal snow or bars in the picture. degradation due to overload in the subscriber's receiver or terminal does not OCCUr." PAGE B2 PHYSICAL PLANT INSPECTION OF aT&t BROADBAND CABLE IN TUSTIN, CALIFORNIA FCC RULE PARAMETER LIMIT COMMENTS §76.605(a)(5) Audio Carrier -10 dBc to -17 If the audio carrier is too high, Relationships dBc below the then the upper adjacent channel visual carrier may experience picture interference. §76.605(a)(7) Carder-to-Noise 43 dBc or more This specification governs how much 'snow' may be seen in a picture. The larger this number, the better the picture. §76.605(a)(8) High Frequency -51 dBc or If this specification is not Distortions greater achieved, then the subscriber may see "lines" or herringbone patterns in the picture background. The larger this number, the better the picture. §76.605(a)(10) Low Frequency 3% or less This specification is designed to Distortions insure that cable system power supply problems do not create bars visible in the subscriber's picture. The smaller this number, the better the picture. To explain how the several of the key parameters listed above impact picture quality, the following section will illustrate degraded performance (worse than permitted by the FCC rules). <Balance of page intentionally left blank> PAGE B3 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CaLIfORNIA Reference Let's start by looking at a reference illustration of a picture free of defects (and presumably in full compliance with FCC rules): ILLUSTRATION 1 Illustration of a clear picture Carrier-to-Noise Ratio Measurements Carrier-to-noise objectively expresses the amount of "snow" seen in the picture, and is considered by most cable engineers to be an essential indicator of system performance. ILLUSTRATION 2 Illustration of "Carrier-to-Noise" (Snow in the picture) The illustration just above illustrates a television picture that suffers from poor carrier-to-noise. Snow (noise) is an undesired and unavoidable byproduct of signal amplification. AT&T must amplify its channels several times per coaxial cable mile to compensate for the natural 'signal loss of coaxial cable. Along with increasing the signal strength, each amplifier adds a small amount of snow to the amplified pictures. This added snow is a normal byproduct of thermal excitation within the cable system by the sun and cannot be eliminated. Each following PAGE B4 PHYSICAL PLANT INSPECTION Of At&T BROADBAND CABLE IN TUSTIN, CALIFORNIA amplifier boosts the incoming television signals and the accumulated snow of all the preceding amplifiers. At a certain point, the amount of picture snow reaches a point where it becomes quite visible in the picture background. Other sources of 'snowy pictures' include the snow contributed by over-the-air transmitters, microwave relays, and atmospheric problems generally--but not entirely outside the control of AT&T. Attachment A 1 to this report lists the carrier-to-noise ratios (along with other parameters) measured at the test points. The FCC requires that AT&T's system provide a level of service at or greater than 43 dBc. AT&T's system was able to demonstrate 100% compliance with the 43 dBc specification at all test points in the franchise area. The carrier-to-noise figures listed in Attachment A 1 to this report are indicative of a system that rarely exhibits visible snow added to the picture because of the field amplification process. <Balance of page intentionally left blank> PAGE B5 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN~ CALIFORNIA Hum (Low Frequency Distortions) We visually inspected the system for "hum" at the test points. Hum, also known as "low frequency distortion," is usually the result of improper cable TV power supply operation or other equipment failures usually related to cable system powering. For example, cable power supplies contain components called capacitors (which minimize voltage fluctuations in cable television amplifier power supplies). As such, capacitors are a primary device to prevent hum in subscriber pictures. Over a period of years, capacitors can lose their natural ability to eliminate hum, and must be replaced. ILLUSTRATION 3 Cable TV Illustration of "Hum" The illustration just above shows the effect of hum in a television picture. Hum is usually seen as one or two horizontal bars that slowly travel upward through the picture. AT&T was able to demonstrate compliance with the current FCC's rule that limits low frequency distortion to no greater than 3 percent. <Balance of page intentionally left blank> PAGE B6 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA High Frequency Distortion Measurements High frequency distortions are usually seen in subscriber television pictures as wavy (herringbone) or diagonal lines. They are the product of defective or mis- adjusted amplifiers. For example, if the cable system technician incorrectly adjusts the amplifier so that its output signal strength is too high, then the next amplifier in line may not be able to properly process the high-level incoming signal, and will create a visible pattern similar to that shown in the following illustration. ILLUSTRATION 4 Illustration of High Frequency Distortions (Beats) Visual The illustration just above shows the effect of beats in a television picture, often seen as a fine herringbone pattern in the background of the picture. Our inspection of the signals at the field test points demonstrates that AT&T was able to demonstrate compliance with the FCC requirements at all times at all test points. Carrier Signal Levels The FCC has established the minimum acceptable visual signal level to be +3 dBmV at the end of a 30 meter drop cable (representing a typical subscriber's cable drop), and no less than 0 dBmV at the input to the subscriber's television set (or VCR, if that precedes the TV). If the picture signal level is too low, pictures may become snowy, similar to the snowy pictures seen when carrier-to-noise ratios fall outside the FCC limits (see Illustration 2, above). AT&T was able to demonstrate compliance with this signal level requirement at all test points in this franchise. Conversely, if the signal levels are too high, then visual distortions similar to beats (see Illustration 4, above) may be produced in the subscriber's television set, VCR, or AT&T's converter. A FCC rule subjectively required AT&T to maintain its signal strength below the point where the high level distortions are visible. PAGE B7 PHYSICAL PLANT INSPECTION OF AT&t BROADBAND CABLE IN TUSTIN, CALIFORNIA For purposes of this assessment, if the signal level was greater than the maximum input level specified by the manufacturer of AT&T's converters and there was no mitigating reason,6 we noted the test point data attached to this report. An additional FCC requirement compels AT&T to maintain adjacent channels within 3 dB of each other. AT&T was able to demonstrate compliance with this parameter at all test points. AT&T is required to maintain all channel video carrier levels within 13 dB of any other channel on the system (non-adjacent channels). AT&T was able to demonstrate compliance with this signal level requirement at all test points in this franchise. Visual-Audio Carrier Signal Relationships The FCC has established the relationship between the level of the video carrier level on a channel, and the audio carrier level for the same channel. The purpose of this rule is to minimize interference between the carriers. AT&T must maintain its backbone system audio carder level between 10 dB and 17 dB below the associated video carder level. AT&T was able to demonstrate compliance with the applicable FCC rule throughout its system. Field Picture Quality Observations Integral to our electrical inspection of the system was our observation of pictures on every analog basic and satellite tier channel. Premium programming carded on a separate digital tier was not inspected for purposes of this report. We noted several test point picture discrepancies (see Attachment A 1 for specific information), but these discrepancies were not consistent, and most likely attributable to varying picture source issues. The technical parameters which AT&T measured under our supervision support the conclusion that the picture issues are source related (and therefore beyond AT&T's control). <Balance of page intentionally left blank> 6 For example, that the tap was a "hot tap" used to serve more than one unit, or to serve a single unit at the end of a long drop. PAGE B8 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Conclusions, .Recommendations, and Closing Comments C Based on more than 24 years of outside plant cable engineering expertise, over 16 of which have been directly related to inspection of cable television systems on behalf of government agencies such as the City, we offer the following conclusions and recommendations based on the system observations reported here: AT&T has rebuilt its system using fiber optic distribution cables in a manner which provides significantly better picture quality and reliability over older coaxial-only distribution systems. . Based on the test point data which we collected, we conclude that this system built by AT&T in the City transmits analog television channels in compliance with the tested parameters of the FCC rules. o We recommend that the City take no further action regarding picture quality until and unless subscriber complaint patterns or other information7 suggest that a technical quality issues exists. As already communicated to the City, certain AT&T staff has generally been uncooperative in this testing and inspection process. Some of the evaluations which we would include in this type of report are omitted because of AT&T's unwillingness to provide the data we requested, but which they have provided elsewhere. Unlike the lack of cooperation noted just above, we wish to recognize Mr. Alfredson as the person most responsible for identifying and then solving key problems in order to facilitate the work which we were able to perform, and which is reported here. Mr. Alfredson and his staff (identified above) provided an exemplary level of cooperation during this inspection. <End of Report; Attachments Follow> 7 Such as failed proof-of-performance reports. PAGE C1 PHYSICAL PLANT INSPECTION Of AT&T BROADBAND CABLE IN TUSTIN , CALIFORNIA Attachment 1: .Inspection Locations, Site Photographs, and Measurements A1 Inspection of AT&T Cable in the City of Tustin, California This section contains the test point location maps, identification photographs, and test point measurement reports. <Balance of page intentionally left blank> ATTACHMENT PAGE 1 PHYSICAL PLANT INSPECTION OF at&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Test Point 1 311 ½ E. 3rd Street, Hall) Test Point 1 Location Map ~TG'~i Test ' 1 m°i /' 'OV 2ND E 2Hl~ ~ ~ ~. m ~ M~IN ~ .:' E MAIN ATTACHMENT PAGE 2 PHYSICAL PLANT INSPECTION Of At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA ~: ?~-~;~'- I.~ CABLE TELEVISION SYSTEM 'N,T~ST:~ ~ ~ DISTORTIONS INSPECTION LOG I1 ~; C~E~9: ~E: ~+ T--~ C/N: C~O (Nokl 2) CT~ HlJm: ~ld t: ~ 2:. --- Ckem~ ~4n 43dec Nax~h~.m!.5~ec ~7~.60~(~xe)(~ Me. 3% ~2f~ ~ 4~ I .... ~z , ATTACHMENT PAGE 3 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Date 02MAY02 ]~i~ ~: 44 Fen~o.~ +67.2 F {+19.6 C) COcation_~ 309 Prebbie st. Cascade Peak-to-Valle~__ Test Point Test By 12.0 Ch Signal Level Data ~ Visual Aural 02 +09.7 03 +09.6 04 +09.0 01 <-27 05 +09.1 06 +09.6 95 +09.0 96 +09.0 97 +08.S 98 +08.4 14 +08.8 lS +08.2 16 +08.5 17 +08.6 18 +08.7 19 +08.9 20 +08.9 21 +09.0 22 +09.3 07 +09.0 08 +09.2 09 +09.4 10 +09.8 11 +09.6 12 +09.7 13 +09.4 23 +09.4 24 +09.3 25 +09.5 26 +09.2 27 +09.8 28 +10.6 29 +10.1 30 +10.2 31 +10.3 32 +10.3 33 +10.3 34 +10.5 35 +09.2 36 +11.5 -05.5 -05.$ -05.5 <-27 -05.8 -05.9 -06.3 -06.4 -06.0 -06.3 -06.5 -05.9 -06.? -06.4 -06.3 -06.3 -06.1 -05.9 -05.5 -05.6 -05.4 -05.4 -04 4 -05 6 -05 1 -05 2 -05 5 -05 5 -05 2 -05.4 -05.0 -04.9 -05.1 -04 .? -04.6 -04.6 -04.5 -04.8 -04.6 -04.4 V:A 10-17 C~B +03.0 dBmV 03.0 dB 15.0 Ratio Ratio Mtn Adj Overall 15.2 Pass Pass Pass Pass 15.1 Pass Pass Pass Pass 14.5 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 15.5 Pass Pass Pass Pass 15.3 Pass Pass Pass Pass 15.4 Pass Pass Pass Pass 14.5 Pass Pass Pass Pass 14.7 Pass Pass Pass Pass 15.3 Pass Pass Pass Pass 14.1 Pass Pass Pass Pass 15.2 Pass Pass Pass Pass 15.0 Pass Pass Pass Pass 15.2 Pass Pass Pass Pass 15.0 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 14.8 Pass Pass Pass Pass 14.6 Pass Pass Pass Pass 14.6 Pass Pass Pass Pass 14.8 Pass Pass Pass PaSS 14.2 Pass Pass Pass Pass 15.2 Pass Pass Pass Pass 14.8 Pass PaSs Pass Pass 14.6 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 14.8 Pass Pass Pa~s Pass 14.7 Pass Pass Pass Pass 14.6 Pass Pass Pass Pass 14.8 Pass Pass Pass Pass 15.5 Pass Pass Pass Pass 15.2 Pass Pa~s Pass Pass 14.9 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 14.8 Pass Pass Pass Pass 15.3 Pass Pass Pass Pass 13.8 Pass Pass Pass Pass 15.9 Pass Pass Pass Pass ATTACHMENT PAGE 4 PHYSICAL PLANT INSPECTION OF at&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Da~e 02~Y02 Tem~ +67.2 F Signal Level Data Visual Aural (+19.6 C) 37 +12.4 -04.2 38 +10.7 -04.1 39 +10.8 -03.9 40 +10.8 -04.3 41 +10.5 -03.6 42 +11.3 -03.5 43 +11.0 -03.5 44 +11.4 -03.7 45 +11,6 -02.4 46 +11.8 -03.5 47 +11.3 -03.3 48 +11.7 -03.5 49 +11.6 -03.5 50 +11,9 -03.6 51 +11.6 -03.6 52 +11.9 -04.1 53 +07.8 -04.1 54 +11.4 -03.2 55 +11.2 -04.1 56 +11.3 -04.5 57 +11.3 -04.3 58 +11.4 -04.7 59 +11.4 -03.8 60 +11.2 -04.1 61 +11.4 -04.2 62 +11.7 -03.4 63 +11.4 -03.7 64 +11.5 -03.3 65 +11.5 -03.8 66 +11.4 -03.7 68 +11.5 -03.1 69 +11.7 -03.2 70 +11.8 71 +11.9 -03.1 72 +12.1 -02.5 73 +12.2 -02.5 75 +12.6 -02.0 76 +12.7 -02.2 77 +12.4 -02.1 78 +12.4 -01.9 Cascade Peak-to-Valley____ 12.0 Test Point Test B~ V:A Ratio 16.6 14.8 14.7 15.1 14.1 14.8 14.5 15.1 14.0 15.3 14.6 15.2 15.1 15.5 15.2 16.0 11.9 14.6 15.3 15.8 15.6 16.1 15.2 15.3 15.6 1S. 1 15.1 14 8 15 3 15 1 14 6 14 9 15 0 1S 0 14 6 14 7 14 6 14 9 14 5 14 3 10-17 dB Ratio Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass +03.0 dBmv Min Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass 03.0 dB 15.0 Adj Overall Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSs Pass Pass FAIL \ ~P,. Pass FAIL ) ~q~ Pass FAIL] ~ Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSS Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass ' Pass pass Pass Pass Pass Pass Pass Pass Pass ATTACHMENT PAGE 5 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Date 02MAY02 Time 06: 44 Temp,~ +67.2 F (+19.6 C) Location_/_ File 01 ~ ~41/ Cascade Peak-to-Valley , _. 12.0 TeSt Point Test By Ch Signal Level Data V:A # visual Aural Ratio 79 +13.0 -02.0 15.0 80 +12.8 -02.3 15.1 81 +13.1 -01.7 14.8 82 +12.5 -02.3 14.8 83 +12.8 -01.9 14.7 84 +12.9 -01.5 14.4 85 +12.9 -01.4 14.3 86 +12.8 -01.3 14.1 FDC +01.1 <-27 117 +12.0 <-27 .... 10-17 dB +03.0 dBmV 03.0 dB 15.0 d~ Ratio Min AdJ Overall Pass Pass Pass pass PaSs Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pas~ Pa~s Pass Pass Pass ATTACHMENT PAGE 6 PHYSICAL PLANT INSPECTION Of At&t BROADBAND CABLE,IN TUSTIN, CALIFORNIA Test Point 2 14661 Dartmouth Circle Test Point 2 Location Map s .~ ~- _ _ ~' ~ ~ .~ ' ATTACHMENT PAGE 7 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA SVST~.: l~u~r~ ~i~E CABLE TELEVISION SYSTEM RE~IN~L~ST;~ ~ N./, DISTORTIONS INSPECTION LOG ~E:~ ~ TI~: O~: UO TEST ~INT: ~ ~ INET ' I ~,~r~,.~ tee r.z~e talevlslm $~tem, §76,601(cX2). On~ u~ E~ m u~ ~ n~. r~a =m~ ~u ~ ~ (x): 1~x~12,~ ~ m~." 12,~* su~, x~2~). ~ ~ b ~w~n~, ~76,~1(bX1) D~ ~ TES~D P~RS PASS?~O ~ IF HO, LIST FA[ED P~ER8 IN TEST NOTES ~L~: TEST ~ ~TE8 [ATTACHMENT PAGE 8 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Date 02MAY02 Time 08:57 Temp,~ +81.1 F (+27.3 C) Location__~14666DART Cascade Peak-to-Valley_____ 11.1 Test Point Test By Ch O2 O3 04 01 O5 O6 95 96 97 98 14 15 16 17 18 19 2O 21 22 07 O8 O9 10 11 12 13 23 24 25 26 27 28 29 3O 31 32 33 34 36 Signal Level Data visual Aural +15.7 +16.1 +15.9 <-27 +15.8 +16.2 +16.2 +16.3 +15.8 +15.4 +15,1 +15.1 +15.2 +15.1 +14.7 +14.9 +14.6 +15.1 +15.3 +15.2 +15.0 +15.1 +15.3 +15,3 +15.5 +14.3 +13.9 +13 6 +14 0 +13 8 +15 0 +14 7 +14 4 · 14 4 +14 9 +14 4 +14 4 +14 2 +16 1 +14 7 +01.2 +00.8 +00.7 <-27 +Ol.O .00.5 +00.8 +01.0 +01.3 +00.5 $00.0 +00.8 -00.1 -00.3 -00.3 -00.4 +00.0 -00,4 +00.0 +00.0 +00.4 -00,3 +01.5 -00,3 +00.1 -00.6 -01.0 -00.5 -00.7 -00.9 -00.5 -00.2 -00.7 -00.6 -00.7 -00.5 -00.5 -00.8 -00.6 -00.7 V:A Ratio 14.5 15.3 15.2 14.8 15.7 15.4 15.3 14.5 14~9 15.1 14.3 15.3 15.4 15.0 15.3 14.6 15.5 15.3 15.2 14.6 15.4 13.8 15.6 15.4 14.9 14.9 14.1 14.7 14.7 15,5 14 9 15 1 15 0 15 6 14 9 14 9 15.0 16.7 15.4 10-17 dB +03.0 dBmV 03.0 dB 15.0 Rat i o Min Adj Overal Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pas s Pass Pass Pas s Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pas s Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSS Pass Pass Pas s Pass Pass Pass Pass Pass Pas S Pas s Pas s Pas s Pass PaSs Pass Pass Pas s Pas s Pas s Pas s Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass PaSs Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass ATTACHMENT PAGE 9 PHYSICAL PLANT INSPECTION OF At&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Date 02MA¥02 Time~ 08;57 Temp~ +81.1 F (+27.3 C) Location_.'~ 14666DART Cascade Peak-to-Valley Test Point Test By 11.1 c~ Ch Signal Level Data # Visual 37 38 39 4O 41 42 44 45 46 47 48 49 5O 51 52 54 55 56 57 58 59 60 61 62 63 64 65 66 68 69 70 71 72 73 75 76 77 78 +14.7 +14.1 +14.6 +14.4 +13.8 +l&.l +13.4 +14.4 +14.7 +14.4 +15.7 +14.1 +13.9 +13.6 +13.3 +13.4 +10.9 +12 7 +12 5 +124 +12 6 +13 0 +13 0 +13 2 +13 5 +13 9 +13 9 +13 8 +13.7 +13.9 +13.8 +13.7 +14.2 +14.3 +14.1 +14.0 +14.5 +14.2 +14.2 +13.7 V:A 10-17 dB +03.0 dBmV 03.0 dB 15.0 Aural Ratio Ratio Min Adj Overall -00.6 15.3 Pass Pass Pass Pass -00,7 14.8 Pass Pass Pass Pass -00.4 15.0 Pass Pass Pass Pass -00.8 15.2 Pass Pass Pass Pass -00.8 14.6 Pass Pass Pass Pass -00.1 14.2 Pass Pass Pass Pass -00.2 13.6 Pass Pass Pass Pass -01.1 15.5 Pass Pass Pass Pa~s +00.4 14.3 Pass Pass Pass Pass -00.6 15.0 Pass Pass Pass Pass -00.5 16.2 Pass Pass Pass Pass -01.3 15.4 Pass Pass Pass Pass -01.6 15.5 Pass Pass Pass Pass -01.9 15.5 Pass Pass Pass Pass -01.6 14.9 Pass Pass Pass Pass -02.8 16.2 Pass Pass Pass Pass -02.9 13.8 Pass Pass Pass Pass -02.4 15.1 Pass Pass Pass Pass -02.8 15.3 Pass Pass Pass Pass -02.6 15.0 Pass Pass Pass Pass -02.6 15.2 Pass Pass Pass Pass -02.9 15.9 Pass Pass Pass Pa~s -01.8 14.8 Pass Pass Pass Pass -01.6 14.8 Pass Pass Pass pass -02.0 15.5 Pass Pass Pass Pass -01.5 15.4 Pass Pass Pass Pass -01.0 14.9 Pass Pass Pass Pass -00.4 14.2 Pass Pass Pass Pass -01.2 14.9 Pass Pass Pass Pass -01.5 15.4 Pass Pass Pass Pass ~00.5 14.3 Pass Pass Pass Pass -00.7 14.4 Pass Pass Pass Pass -01.1 ~ 15.3 Pass Pass Pass Pass -01.0 15.3 Pass Pass Pass PaSS -00.6 14.7 Pass Pass Pass Pass -00.6 14.6 Pass Pass Pass Pass -00.7 15.2 Pass Pass Pass Pass -01.0 15.2 Pass Pass Pass Pass -00.9 15.1 Pass Pass Pass Pass -00.3 14.0 Pass Pass Pass Pass IATTACHMENT PAGE 10 PHYSICAL PLANT INSPECTION Of At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Date 02MA¥02 Time 08:57 Temp.~ +81.1 F (+27.3 C) Location "J'"14666DART Cascade Peak-to-Valley Test Poin= Test By 11.1 d Ch Signal Level Data # Visual Aural 79 8O 81 82 83 84 85 86 FDC 117 +14.4 +14 6 +14 5 +13 6 +13 7 +13 8 +13 7 +13.5 +05.2 .14.3 V:A 10-17 dB +03.0 dBmV 03.0 dB 15.0 ~ Ratio Ratio Min Adj Overall -00.9 15.3 pass Pass Pass Pass -01.1 15.7 Pass Pass Pass PaSs -00.7 15.2 Pass Pass Pass Pass -01.4 15.0 Pass Pas~ Pass Pass -01.1 14.8 Pass Pass Pass Pass -01.0 14.8 Pass Pass Pass Pass -01.0 14.7 Pass Pass Pass Pass -00.1 13.6 Pass Pass Pass Pass <-27 .................... <-27 .................... [ATTACHMENT PAGE 1 I PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Test Point 3 13701 Falmouth Drive Test Point 3 Location Map L~G IE R AVE I',ttTA, ALLPE IRA I,,,~ ATTACHMENT PAGE 12 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA S~E~.~ ~.d~ CABLE TELEVISION SYSTEM ,o~E~u: *~ ~, ,.mALTEST: ~" ~ DISTORTIONS INSPECTION LOG ~E: ~ R~' DATE: i ~/O ~ TI~:~ ~STP~NT:~ I~T /.... -- P~L~:~D:~L.T/t~ (,~-.):.~ wJL~:.~u~_,p,o~o<~): 2./9- '2..- T.~ ~ C~O [Note 2) CTB H.m; Add~e.~ t: NklWM~ Z: _ ~ ~.~ ~..t - ,, _~,o~. tl~ o.~ ?~-u! ~ ii ' "' A AU. ~O/~¥A T/ON CONTAflVED ON ~ FO~ CONF/R~k~Ei~ 7 T/NE OF' 'r~'ST/NG cam~,mrr ~ 2000-2002 Ic, aJda~.r Iud. mc. ~l,L mG~'l RE~D. I.~ ATTACIIMENT PAGE 13 PHYSICAL PLANT INSPECTION OF at&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Date 02MAY02 Time 09:45 Temp~ *79.3 F (+26.3 C) hocation_~ 13?01FALMOUTH Cascade Peak-to-Valley Tes= Point TeSt B~ 08.8 dl Ch Signal Level Data # Visual Aural 02 +10.9 03 +11.4 04 +11.0 01 <-27 05 +11.1 06 +11.5 95 +11.0 96 +11.3 97 +11.0 98 *10.8 14 +11.3 15 +10.9 16 +11.5 17 -11.3 18 +11.7 19 +11.4 20 +11.4 21 +11.6 22 +11.9 07 +11.8 08 +11.7 09 .11.3 10 +11.8 11 +11.4 12 +11.4 13 +11.0 23 +10.5 24 +10.6 25 +10.8 26 +10.6 27 +11.1 28 +11.4 29 +11.4 30 +11.4 31 +11.8 32 +11.4 33 +11.1 34 +11.6 35 +10.2 36 +11.4 -03.6 -04.1 -03.9 < -27 -03.7 -04.0 -04.0 -03.8 -03.2 -03.6 -O4.0 -02.8 -03.5 -03.5 -03.8 -03.5 -03.3 -03 .l -03.1 -03.6 -03.2 -03 6 -02 1 -03 8 -03 5 -03 9 -04 1 -04 1 -04 0 -03 9 -03 5 -03 8 -04 1 -03 1 -03 7 -03 2 -03 7 -03 9 -03 4 -03 4 V:A Ratio 14.5 15.5 14.9 14.8 15.5 15.0 15.1 14.2 14.4 15.3 13.7 15.0 14.8 15.5 14.9 14.7 14.7 15.0 15.4 14.9 14 9 .13 9 15 2 14 9 14 9 14 6 14 7 14.8 14.5 14.6 15.2 15.5 14.5 15.5 14.6 14.8 15.5 13.6 14.8 10-17 dB +03.0 dBmV 03.0 dB 15.0 Ratio Mtn Adj Overal Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSS Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSs Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSs Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass I*~ ATTACtIMENT PAGE 14 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUStIN, CalifORnia Date 02M~¥02 T£me 09:45 Temp.~ +79.3 F (+26.3 C) Location ~ 13701FALMOUTH Cascade Peak-to-Valley__ Test Point Test By 08.8 c~ Ch Signal Level Data # Visual Aural 37 +13.1 -02.8 38 +11.5 -03.5 39 +12.3 -02.5 40 +11.9 -02.5 41 +12.2 -02.9 42 +12.0 -02.2 43 +11.7 -02.3 44 +12.5 -02.5 45 +12.7 -01.1 46 +12.9 -02.3 47 +13.0 -02.1 48 +12.8 -02.6 49 +12.7 -02.5 50 +12.3 -02.6 51 +12.4 -02.7 52 +12.4 -03.4 53 +14.2 -03.2 ~4 +12.0 -03.0 55 +11.5 -03.8 56 +11.7 -03.9 57 -11.8 -03.7 58 +11.8 -04.0 59 +11.8 -02.9 60 +12.0 -03.3 61 ~12.2 -03.2 62 +12.5 -02.2 63 +12.4 -02.3 64 .12.6' -02.1 65 +12.6 -02.7 66 +12.? -02.4 68 +12.7 -01.7 69 +12.6 -02.8 70 +12.3 -03.4 71 +11.4 -04.0 72 +10.4 ~05.4 73 +08.6 -05.9 75 +11.1 -02.6 76 +12.0 -02.2 77 +12.6 -02.2 78 +12.5 -01.7 V:A 10-17 dB +03.0 dBmv 03.0 dB 15.0 ~ Ratio Ratio Min Adj Overall 15.9 Pass Pass Pass Pass 15.0 Pass pass Pass pass 14.8 Pass Pass Pass Pass 14.4 Pass Pass Pass Pass 15.1 Pass Pass Pass Pass 14.2 pass Pass Pass Pass 14.0 Pass Pass Pass Pass 15.0 Pass Pass PaSB Pass 13.8 Pass Pass Pass Pass 15.2 Pass Pass Pass Pass 15.1 Pass Pass Pass Pass 15.4 Pass Pass Pass Pass 15.2 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 15.1 Pass Pass Pass Pass 15.8 Pass Pass Pass Pass 17.4 FAIL Pass Pass Pass 15.0 Pass Pass Pass Pass 15.3 Pass Pass Pass Pass 15.6 Pass Pass Pass Pass 15.5 Pass Pass Pass Pass 15.8 Pass Pass Pass Pass 14.7 Pass Pass Pass Pass 15.3 PaSs Pass Pass Pass 15.4 Pass Pass Pass Pass 14.? Pass Pass Pass pass 14.7 Pass Pass Pass Pass 14.7 Pass Pass Pass Pass 15.3 Pass Pass Pass Pass 15.1 Pass Pass Pass Pass 14.4 Pass Pass Pass Pass 15.4 Pass Pass Pass Pa~ 15.7 Pass Pass Pass Pass 15.4 Pass Pass Pass Pass 15.8 Pass Pass Pass Pass 14.5 Pass Pass Pass Pass 13.7 Pass Pass Pass Pass 14.2 Pass PaBS Pass Pass 14.8 PaSs Pass Pass Pass 14.2 Pass Pass Pass Pass ATTACHMENT PAGE 15 PHYSICAL PLANT INSPECTION OF at&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Date 02MAY02 Time 09:45 Te~.~ +79.3 F (+26.3 C) Locatio~ ~ 13701FALMOUTH Cascade Peak-to-valleY,.. Test Point Test By 0~.8 ci~ Ch Signal Level Data # Visual Aural 79 +13.0 -01.8 80 +13.1 -01.9 81 +13.2 -01.6 82 +12.8 -02.2 83 +12.9 -01.9 84 +12.7 -01.6 85 +12.8 -01.7 86 +12.4 -01.3 FDC +05.4 <-27 L17 +13.9 <-27 V:A 10-/7 dB +03.0 dBmV 03.0 dB 15.0 d~ Ratio Ratio Mtn Adj Overall 14.8 Pass Pass Pass Pass 15.0 Pass Pass Pass Pass 14.8 Pass Pass Pass Pass 15.0 Pass Pass Pass Pass 14.8 Pass Pass Pass Pass 14.3 Pass Pass Pass Pass 14.5 Pass Pass Pass Pass 13.7 Pass Pass Pass Pass I.~ ATTACHMENT PAGE 16 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Test Point 4 1801 Windsor Lane Test Point 4 Location Map I.~ ATTACHMENT PAGE 17 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA s¥~E,~ ~.I' r '/u.4.... I_~lp, CABLE TELEVISION SYSTEM NOO~,~tA.U: ,.,t~TEST~ (:~ . II'~ DISTORTIONS INSPECTION LOG c~,.: ~ SUB- PHYSICAL: COMIvlENT$: CASCADE: /%/ 'P ~ P(:X.E/VAULTID: /O~/I.~I~_,~C'LAT/LON(WGS-M);N..ii~._.~L~W I~"~ ~"~/'~ij_('/'PHOTO(S): Note 1: ~ c~ ~ tot telling ~ be rap. M II t~e ~ ~ ~ ~ W~ ~. ~76,~1(cX2). ~ uM E~ M un~ ~n~ ~m. F~ ~ ~ ~ ~ ~ ~ ~); I~<x<12,~: 6 ~. ff 12,~* $u~. x~12~). ROund up ~ ~xt ~ flu~. 976.~1(bX1) DID ~ TEB~D ,~ PA~ ' i" ~, L~ FAILED P~"S ~ TEST ~NT NOTES BEL~: I.~ ATTACIIMENT PAGE 18 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Cascade Peak-to-valle[__ TeSt Point Test B~ 11.9 Ch Signal Level Data # Visual Aural O2 03 O4 01 O5 O6 95 96 97 98 14 15 16 17 18 19 2O 21 22 O7 08 O9 10 11 12 13 23 24 25 26 27 28 29 30 31 32 33 35 36 +14.5 +15.1 .14.8 ¢-27 ~14.5 *14.8 +14 3 +14 1 +13 8 · 13 4 +13 4 +12 9 +13 2 +13 2 +13 1 +12.8 +13 .2 +13.3 +13.1 +13.3 +13.2 +13.2 +13.5 +13.5 +12.8 +12.4 +12.6 +12.4 +12.4 +12.3 +13.0 +13.7 +13.2 +13.2 +13.2 +12.9 +13.3 +13.3 +14.1 +12.7 V:A 10-17 dB *03.0 dBmV 03.0 dB Ratio Ratio Min Adj +00.3 14.2 Pass Pass Pass +00.0 15.1 Pass Pass Pass +00.0 14.8 Pass Pass Pass <-27 ............ -00.1 14.6 Pass Pass Pass -00.7 15.5 Pass Pass Pass -00.8 15.1 Pass Pass Pass -01.0 15.1 Pass Pass Pass -00.7 14.5 Pass Pass Pass -01.0 14.4 Pass Pass Pass -01.4 14.8 Pass Pass Pass -01.1 14.0 Pass Pass Pass -01.8 15.0 Pass Pass Pass -01.9 15.1 Pass Pass Pass -01.9 15.0 Pass Pass Pass -02.1 14.9 PaSS Pass Pass -01.9 15.1 Pass Pass Pass -01.5 14.8 Pass Pass Pass -01.5 14.6 Pass Pass Pass -01.7 15.0 Pass Pass Pass -01.4 14.6 Pass Pass Pass -01.8 15.0 Pass Pass Pass -00.5 14.0 Pass Pass Pass -01.7 15.2 Pass Pass Pass -01.7 14.5 Pass Pass Pass -02.3 14.7 PaSS Pass Pass -02.4 15.0 Pass Pass Pass -02.0 14.4 Pass Pass Pass -01.9 14.3 Pass Pass Pass -01.9 14.2 Pass Pass Pass -01.6 14.6 Pass Pass Pass -01.7 15.4 Pass Pass Pass -01.7 14.9 Pass Pass Pass -02.2 15.4 Pass Pass Pass -01.5 14.7 Pass Pass Pass -01.5 14.4 Pass Pass Pass -01.5 14.8 Pass Pass Pass -02.2 15.5 Pass Pass Pass -01.5 15.6 Pass Pass Pass -01.8 14.5 Pass Pass Pass 15.0 d~ Overall Pass Pass Pass Pass Pass Pass Pass Pass PaSS Pass Pass Pass Pass Pass Pass Pass Pass PaS~ PaSS Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass I,~ ATTACHMENT PAGE 19 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Cascade Peak-to-Valle~__ TeSt Point Test By 11.9 dB Ch Signal Level Data # Visual Aural 37 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 55 56 57 55 59 60 61 62 63 64 65 66 68 7O 71 72 73 75 76 77 +10.5 +12 8 +13 0 +12 8 +12 6 +12 5 +12 0 +12 5 +12 7 +12 4 +12 8 +11 9 +11 6 +11.3 +11.2 · 11.0 +07.7 +10.4 +1o.4 +10.2 +10.3 +10.5 +io.5 +10.6 +10.5 +ii.i +ii.2 +ii.4 +11.3 .ii.4 +ii.9 +11.8 +12.1 +11.9 +12.0 +12.2 · 12.4 +12.4 +12.0 +11.8 -01.7 -01.7 -0i.8 -02.0 -01.9 -02.1 -02.5 -01.4 -02.8 -03.0 -03.4 -03.7 -03.9 -04.1 -04.9 -04.9 -04.5 -05.1 -05.3 -05.0 -05.5 -04.3 -04.8 -04.6 -03 6 -03 6 -03 2 -03 5 -03 6 -02 8 -03 0 -03 2 -03 4 -02 3 -02 7 -02 3 -02 5 -02 7 -02 5 V:A 10-17 dB +03.0 dBraV 03.0 dB 15.0 dB Ratio Ratio Min Adj Overall 12.2 14.5 14.7 14.6 14.6 14.4 14.1 15.0 14.1 15.2 15.8 15.3 15.3 15.2 15.3 15.9 12 6 14 9 15 5 15 5 15 3 16 0 14 8 15 4 15 1 14 7 14 8 14.6 14.8 15.0 14.? 14.8 15.3 15.3 14,3 14.9 14.7 14.9 14.7 14.3 Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pus Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSs Pass Pass FAIL Pass Pass Pass FAIL Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSS Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass I*~ ATTACHMENT PAGE 20 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Cascade Peak-to-Valley 11.9 dB Test Point TeSt By Ch Signal Level Data # Visual Aural 79 +12.1 -02.7 80 +12.2 -02.5 81 +12.6 -02.3 82 +12.2 -02.7 83 +12.0 -02.5 84 +12.0. -02.0 85 +12.1 -02.2 86 +11.9 -02.2 ~ +03.2 <-27 L17 +11.7 V:A 10-17 dB +03.0 dBmV 03.0 dB 15.0 dB Ratio Ratio Min Adj Overall 14.8 Pass Pass Pass pa~s 14.7 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 14.9 Pass Pass Pass Pas~ 14.5 Pass Pass Pass Pass 14.0 Pass Pass Pass Pass 14.3 Pass Pass Pass Pass 14.1 Pass Pass Pass Pass I.~ ATTACHMENT PAGE 21 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN , CALIFORNIA Test Point 5 13692 Jenet Circle Test Point 5 Location Map I*~ ATTACHMENT PAGE 22 PHYSICAL PLANT INSPECTION OF at&t BROADBAND CABLE IN TUSTIN, CALIFORNIA s.,.s~,:.a..-r~ 'Tv_v-/_,.., W...~I~] CABLE TELEVISION SYSTEM r,~T,.'.L~ST: ~" Jll''"~ DISTORTIONS INSPECTION LOG ,SUB- B RETEST# DATE;~'I~./O~,- TIME: J I,'O~TEST POINT: ~" INET ' I PHYSICAL: j~ COMMENTS: CASCADE; Not~2'The~ali~dvieual-- I' ~mu~tbe~.ofallthe?,i.~,mlhl. thecabie~le~sion~lem.§76.601(c)(2). Onlyu~eEIAo~unmapl~lc~nnelnun~ee~. Fo~muta t~ ~ ~ M ~ ~ (x): 1~<~2,~ 6 ~, ~ ~2.~* ~, ~6~2~), Round ~ ~ ~ ~ n~r. ~.~l(bXl) DO ~ ~SEO P~ PASS? ~ ~ > IF ~. LIST F~EO P~RS IN TEST ~'NT "OTES ~LOW: TEST ~ ~S n2 ~-o~rn~ ro~o o~ r~s ~o~.c~T U~ OF r~sr~ ~ la.~ ATTACHMENT PAGE 23 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Cascade Peak-to-valley,, TeSt Point Test B~ 12.0 dB Ch Signal Level Data # visual Aural O2 O3 O4 01 05 06 95 96 97 98 14 15 16 17 18 19 20 21 22 O7 O8 O9 10 11 12 13 23 24 25 26 27 28 29 3O 31 32 33 34 35 36 +08.4 +08.9 +08.6 <-27 +05.8 +09.2 +08.5 +08.8 +08.4 +o8.1 +08.5 +08.3 +08.6 +08.6 +08.8 +08 6 +08 5 +08 4 +08 6 +08 8 +08 1 +08 7 +09.1 +08.7 +08.5 +08.4 +07.9 +07.6 +07.9 +07.9 +08.3 +08.6 +08.3 +08.3 +08.6 +08.5 +08.6 +08.5 +06.6 +09.4 -05.6 -06.3 -o6.2 <-27 -05.? -06.2 -06.4 -06.4 -06.3 -06.3 -06.5 -05.6 -06.5 -06.4 -06.8 -06.5 -06.4 -06.3 -06.3 -06.5 -06.2 -06.3 -04.9 -06.2 -06.2 -06.4 -07.3 -07.2 -06.6 -06.5 -06.4 -06.4 -06.7 -06.7 -06.4 -06.3 -06.4 -06.7 -06.1 -06.1 V:A Ratio 14.0 15.2 14.8 li 5 15 4 14 9 15 2 14 7 14 4 15 0: 13 9 15.1 15.0 15.6 15.1 14.9 14.7 14.9 15.3 14.3 15.0 14.0 14.9 14.7 14.8 15.2 14.8 14.5 54.4 14.7 15.0 15.0 15,0 15.0 14.8 15.0 15.2 12.7 15.5 10-17 dB +03.0 dBmV 03.0 dB 15.0 dB Ratio Min Adj Overall Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSs Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSs Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSs Pass Pass pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pasg Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass 14,~ ATTACHMENT PAGE 24 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Cascade Peak-to-Valle~__ Test Point Test By Ch # Visual 37 +10.8 38 +08.7 39 +09.0 40 +08.6 41 +09.0 42 +08.8 43 +08.4 44 +09.1 45 +09.6 46 +09.3 47 +10.8 48 +09.3 49 +09.4 50 +09.3 51 +08.9 52 +09.4 53 +09.6 54 +09.0 55 +08.7 56 +08.7 57 +08.8 58 +09.2 59 +09.3 60 +09.8 61 +09.8 62 +10.6 63 +10.4 64 +10.6 65 +10.6 66 +10.7 68 +11.1 69 +11.0 70 +11.2 71 +11.2 72 +11.3 73 +11.4 75 +11.8 76 +11.7 77 +11.7 78 +11.5 Signal Level Data Aural -06.0 -06.0 -05.7 -05.9 -05.8 -05.8 -05.4 -05.8 -04.4 -05.6 -05.6 -05.8 -05.9 -06.0 -05.9 -06.6 -06.5 -05.9 -06.7 -06.6 -06.3 -06.5 -05.6 -05.5 -05.4 -04 4 -04 4 -04 0 -04 6 -04 0 -03 5 -03 6 -03 8 -03.7 -03.3 -03.3 -02.9 -03.0 -03.1 -03.1 12.0 V:A 10-17 dB +03.0 dB~V 03.0 dB 1S.0 d Ratio Ratio Min Adj Overal 16.8 Pass Pass Pass Pass 14.7 Pass Pass Pass Pass 14.7 Pass Pass Pass Pass 14.5 Pass Pass Pass Pass 14.8 Pass Pass Pass Pass 14.6 Pa~s Pass Pass Pass 13.8 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 14.0 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 16.4 Pass Pass Pass Pass 15.1' Pass Pass Pass Pass 15.3 Pass Pass Pass Pass 15.3 Pass Pass Pass Pass 14.8 Pass Pass Pass Pass 16.0 pass Pass Pass Pass 16.1 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 15.4 Pass Pass Pass PaSs 15.3 Pass Pass Pass Pass 15.1 Pass Pass Pass Pass 15.7 Pass Pass Pass Pass 14.9 Pass Pass Pass Pass 15.3 Pass Pass Pass Pass 15.2 Pass Pass Pass Pass 15.0 Pass Pass Pass Pass 14.8 Pass Pass Pass Pass 14.6 Pass Pass Pass Pass 15.2 Pass Pass Pass Pass 14.7 Pass Pass Pass Pass 14.6 Pass Pass Pass Pass 14.6 Pass Pass pass Pass 15.o Pass Pass Pass Pass 14.9 PaSS Pass Pass Pass 14.6 PaSs Pass Pass Pass 14.7 Pass Pass Pass Pass 14.7 Pass Pass Pass Pass 14.7 Pass Pass Pass Pass 14.8 Pass Pass Pass Pass 14.6 Pass Pass Pass Pass I*~ ATTACHMENT PAGE 25 PHYSICAL PLANT INSPECTION Of AT&t BROADBAND CABLE in TUSTIN, CALIFORNIA Cascade Peak-to-Valley Test Point Test By 12.0 Ch Signal Level Data # Visual Aural 79 +12.0 -03,1 80 +11.8 -03.2 81 +12.2 -02.6 82 +11.3 -03,8 83 +11.6 -03.2 84 +11.6 -03.0 8S +11.1 -03.0 86 +11.4 -02.7 FDC +00.2 <-27 117 +10.2 <-27 V:A 10-17 dB +03.0 dBmV 03.0 dB 15.0 Ratio Ratio Min Adj Overall 15.1 Pass pass Pass Pass 15.0 Pass Pass Pass Pa~s 14.8 Pass Pass Pass Pass 15.1 Pass Pass Pass Pass 14.8 Pass Pass PasB Pass 14.6 Pass Pass pass Pass 14.1 Pas~ Pas~ Pass Pass 14.1 Pass Pass Pass Pass [.~ ATTACHMENT PAGE 26 PHYSICal PlaNt I nsPfEtiON Of AT&T BROADBAND CaBLe iN TUSTIN, CALIfORNIa Test Point 6 13192 Marshall Lane Test Point 6 Location Map E ~rO~E z 'J E BUFFALO i.-. = ::o ',a,,14tT NEY RAINIER OAt( RID:GE SAN't' A CLA¢'2' I.~ ATTACHMENT PAGE 27 PHYSICAL PLANT INSPECTION Of At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA SVSTEU: /-,~'r~ ~IeE CABLE TELEVISION SYSTEM .=/~T^.E~: ~q ,.~s~: ~. DISTORTIONS INSPECTION LOG c~.~: ~ POLE/VAULT ID:..~4~_~(2_Tt~!~LATA.ON(WG$-84)~ N $~ 4~':._~'~' Wll'"'~' ¢~'. ~.~: PHOTO~): '~1 ~ 'v must bt rig ~n ~he cable le4evisk)n system. ~7~,601(cX2). O~/use EIA o~ unmap~ed channe~ numba~. I~ 2; The fido o~ v~eual ~gnel levM k:) the rme i~dudl of e~/oohefent dk~ul~ slx~ e3 inlem~ ~, ~ ~ ~ ~ d~ ~ dilcml~fmquancy h'~e~emg sigrmh not O~ng oo ~ o~ aSaignmml~. §76.606(8XI) ar~ (ii} Fom'~la Io compme ~umber o~ tam polntl (x): 1000<x<12,500,. 6 points, If 12,500+ sulm, x--6Hsuba/12600). Round up to next whole number §76,601(bX1) TESTPOtNT LEVELS STOREDA8: .~" ~(~ I ~'u ';"~ ~ OlD All TESTED PARAMETERS PASS?~Y~ klO I,,, IF NO, UST FAILED PARAMETERS IN TEST POINT NOTES BELOW; v TE~I' ~ NOTES ALL It*kCORMA TION CON T~NED ON 7HI~; FORM C~ if OF TE$ TING I,~ ATTACHMENT PAGE 28 PHYSICAL PLANT INSPECTION Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Date 02N~Y02 rime 11: 40 retTtp.~ +84.2 F (+29.0 C) Cascade Peak-to-Valley Test Point Test By. 43.8 Ch Signal Level Data # Visual Aural 02 O3 04 01 O5 O6 95 96 97 98 14 15 16 17 18 19 2O 21 22 O7 O8 09 10 11 12 13 23 24 25 26 27 29 3O 31 32 33 34 35 36 +17.5 +17.1 -17.1 -26.3 +16.9 +17.4 +16.5 +16.9 +16.5 +16.0 +15.7 +15.4 +15.3 +15.2 +15.3 +15.3 +15.3 +15.2 -15.7 +15.1 +15.2 +15 4 +15 7 +14 8 +15 2 +14 6 +14 4 +14 2 +14 4 +14 1 +14 4 +14 9 +14 5 +14 6 +14.6 714.4 +14.1 +14.2 +14.9 +15.5 +02.2 +01.8 +02.2 <-27 +02.1 +01.7 +01.5 +01.7 +01.5 +01.4 +00.4 +01.1 +00 0 +00 1 +00 0 +00 2 +00 2 +00 2 +00.5 +00.3 +00.4 +00.2 +01.5 -00.1 +00.0 -00.5 -00.4 -00.4 -00.3 -00.5 -00.3 -00.3 -00.6 -00.7 -00.7 -00.9 -00.7 -01.0 -00.8 -00.8 V:A Ratio 15.3 15.3 14.9 14.8 15.7 15.0 15.2 15.0 14.6 15.3 14.3 15.3 1S.1 15.3 15.1 15 1 15 0 15 2 14 8 14 8 15 2 14 2 14 9 15.2 15.1 14.8 14.6 14.7 14.6 14.7 15 2 15 1 15 3 15 3 15 3 14 8 15.2 15.7 16.3 10-17 dB +03.0 dB~V 03.0 dB 15.0 Ratio Min Adj Overall Pass Pass Pass Pass Pass Pass Pass Pass ¢ Pass Pass FAIL~ ~ Pass Pas. Pa.s Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSS Pass Pass PaSS Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSB Pass Pass Pass Pass Pass PaSs Pass PaSS Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pa~s Pass PaSs Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass I*~ ATTACHMENT PAGE 29 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Date 02MAY02 Til~le 11:40 Temp~ +84.2 F (+29.0 C) LOcation~_ 13192MARS~%L Cascade Peak-to-Valley__ Test Point Test B~ 43.8 Ch Signal Level Data # Visual Aural 37 +13.6 -00.9 38 +13.6 -00.7 39 +14.2 -00.7 40 +13.8 -00.9 41 +14.0 -00.8 42 +14.1 -00.6 43 +13.5 -00.7 44 +14.0 -01.1 45 +14.3 +00.2 46 +14.2 -00.9 47 +12.9 -00.8 48 +14.3 -01.1 49 +13.9 -01.0 50 +14.3 -01.4 51 +13.6 -01.0 S2 +13.9 -01.8 53 -10.2 -01.5 54 +13.7 -01.4 55 +13.2 -02.0 56 +12.9 -02.3 57 +12.8 -02.1 58 +13.3 -02.1 59 +13.3 -01.3 60 +13.7 -01.5 61 +13.7 -01.5 62 +14.3 -00.7 63 +14.2 -00.7 64 +14.5 -00.4 65 +14.2 -00.9 66 +14.2 -00.8 68 +14.3 -00.2 69 +14.1 -00.3 70 +14.6 -00.6 71 +14.5 -00.6 72 +14.6 -00.1 73 +14.4 -00.1 75 +14.9 -00.1 76 +14.6 +00.0 77 +14.5 -00.5 78 +14.3 -00.2 V:A 10-17 dB +03.0 dBmV 03.0 dB 15.0 Ratio Ratio Nih Adj oweral] 14.5 14.3 14.9 14.7 14.8 14.7 14.2 15.1 14.1 15.1 13.7 15.4 14 9 15 7 14 6 15 ? 11 7 15 1 15 2 15 2 14 9 1$ .4 14.6 15.2 15.2 15.0 14.9 14.9 15,1 15.0 14.5 14.4 15.2 15.1 14.7 14.5 15.0 14.6 1S.O 14.5 Pass Pass PaSs Pass Pass Pass Pass Pass Pass Pass PaSS Pass PaSS Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pas~ Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass FAIL Pass Pass FAIL Pass Pass FAIL Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass PaSS Pass Pass Pass PaSs Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass [e~ ATTACt[MENT PAGE 30 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Cascade Peak-to-Valley Test Poin~ Test By 43.8 c1~ Ch Signal Level Data # visual Aural 79 +14.6 -00.5 80 +14.3 -00.6 81 +14.4 -00.7 82 +13.6 -01.4 83 +13.6 -01.2 84 +13.4 -01.3 85 +13.1 -01.3 86 +12.9 -01.2 FDC +00.3 <-27 117 +11.2 <-27 V:A 10-17 dB +03.0 dBmV 03.0 dB 15.0 d~ Ratio Ratio Min Adj Overall 15.1 Pass Pass Pass Pass 14,9 Pass Pass Pass Pass 15.1 Pass Pass Pass Pass 15.0 Pass Pass Pass Pass 14.8 Pass PaSS PaSS PaSS 14.7 Pass Pass Pass Pass 14.4 pass Pass Pass Pass 14.1 Pass Pass Pass Pass [ATTACHMENT PAGE 31 PHYSICAL PLANT INSPECTION OF at&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Test Point 7 15401 Williams # 117 Test Point 7 Location Map : I,~ ATTACHMENT PAGE 32 PHYSICAL PLANT INSPECTION OF aT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA s~s~,,:._T~'s ~ ~,leE CABLE TELEVISION SYSTEM ,.-~s~: ~ . DISTORTIONS INSPECTION LOG RE~,~ DATE: ~{~/0~ ~:_1 ~ ~ ~ST~NT: ~ INET P~'s,c~.:_ .~;:::;'~'~ COMMENTS: C^SC~E: /v POLrr./VAULT ID: ~* ~_,.~LAT/LON(W~,~-B4);N ~"~ q~ .~f.~ W~._~~ PHOTO(S): TESTPOINTHOTE$ ALL MOMMT~N COaTi,CcD ON ~s ~ co~q~e'o A//~ ~ TESTinG aw ~ $ 20(X~2902 K/q~Mm.~m,, i~C, *Lt. R2~o ~:~N[: 1 -B66.J~k'~'~ ~ ~ I(,~M~Fi~M.COM --~.~M' AND 'K~"cooo ~ u,~'ro ~G, ~ ~ IATTACHMENT PAGE 33 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE iN TUSTIN, CAlifORNIA Cascade Peak-to-Valley Test Point TeSt By 14.3 dB Ch Signal Level Data # visual Aural 02 +11.7 03 +12.6 04 +12.7 01 .<-27 05 +12.3 06 +12.4 95 +12.0 96 +11.8 97 +11.4 98 +11.1 14 +11.2 15 +10.7 16 +10.9 17 +11.1 18 +11.1 19 +10.9 20 +10.7 21 +10.8 22 +10.9 07 +10.8 08 +10.5 09 +10.5 10 +10.9 11 +10.3 12 +10.4 13 +09.7 23 +09.8 24 +10.0 25 +10.0 26 +09.6 27 +10.1 28 +10.2 29 +09.7 30 +09.7 31 +09.9 32 +09.6 33 +09.6 34 +09.9 35 +11.1 36 +10.4 -01.9 -02.2 -02.0 <-27 -02.3 -03.0 -03 4 -02 9 -03 2 -03 5 -03 9 -03 5 -04 3 -04 0 -04 6 -04 1 -04 1 -O4.2 -03 .? -04.2 -04.2 -04.4 -03.1 -04.6 -04.5 -04.8 -05.0 ~04.8 -04.8 -04.7 -04.7 -04.8 -05.3 -05 .S -05.4 -04.9 -05.1 -05.5 -05.0 -05.1 V:A Ratio 13.6 14.8 14.7 14.6 15.4 15.4 14.7 14.6 14.6 15.1 14.2 15.2 15.1 15.7 15.0 14.8 15.0 14.6 15.0 14.7 14.9 14.0 14.9 14 9 14 5 14 8 14 8 14 8 14 3 14 8 15 0 15 0 15 2 15 3 14 5 14 7 15 4 16 1 15 5 10-17 dB +03.0 dBmV 03.0 dB 15.0 dB Ratio Min Adj 0verall Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pas~ Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Page Pa~s Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSs Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pa~s Pass Pass Pass Pass PaSs Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Page Pass Pass Pass Pass Pass Pass le~ ATTACiIMENT PAGE 34 PHYSICAL PLANT INSPECTION OF At&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Peak-~o-Valle~__ Test Point: Test: By 14.3 dB Ch Signal Level Dat:a # Visual Aural 37 +09.6 -05.1 38 +09.5 -05.I 39 +10.0 -05.1 40 +09.5 -05.2 41 +09.7 -05.4 42 %09.5 -04.8 43 +09.2 -04.7 44 +09.9 -05.0 45 +10.3 -03.8 46 +10,3 -04.9 47 +07,7 -04,6 48 +10.2 -05,1 49 +10,1 -04,9 50 +10.4 -05.1 51 +09.9 -05.1 52 +10.0 -05.4 S3 +10.4 -05.5 54 +09.8 -04.8 55 +09.8 -05.4 56 +09.6 -05.8 57 +09.5 -05.6 58 +10.0 -05.8 59 +09.7 -04.9 60 +10.0 -05,4 61 +10.0 -05.2 62 +10.8 -04.2 63 +10.7 -04,5 64 +10.7 -04.2 65 +10.5 -04,4 66 +10.7 -04.4 68 +11.1 -03.3 69 +10.9 -03,8 70 +11.3 -03.9 71 +11.2 -03.8 72 +11.3 -03.4 73 +11.3 -03.4 75 +11.5 -03.2 76 +11.2 -03.2 77 +11.5 -03.2 78 +11.2 -03.3 V:A Ratio 14.7 14 6 15 1 14 7 15 1 14 3 13 9 14 9 14.1 15.2 12.3 15.3 15.0 15.5 15.0 15.4 15,9 14.6 15.2 15.4 15.1 15.8 14.6 15.4 15.2 15 0 15 2 14 9 14 9 15 1 14 4 14 7 15 2 15 0 14 7 14 7 14 7 14 4 1% 7 14 5 10-17 dB +03.0 dBmV 03.0 dB Ratio Mis Adj Pass Pass Pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Paso Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass pass Pass Pass pass Pass Pass Pa~s Pass pass Pass Pass Pass pass Pass Pass Pass Pass Pass Pass Pass Pass pass Pass Pass Pass 15.0 dB Overall Pass Pass Pass Pass Pass Pass Pass PaSS Pass Pass Pass Pass Pass Pass PaSS Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass PaSS Pass PaSs Pass Pa~s I~'~ ATTACHMENT PAGE 35 PHYSICAL PLANT INSPECTION OF at&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Date 2 rime 12: 26 r~.~ +86.3 F (+30.2 C) ~ocation ~ 15401WILLIAM#ii7 Cascade Peak-to-valle~__ Test Point Test By 14.3 dB Ch Signal Level Data # Visual Aural 79 +11.8 -03.0 80 +11.9 -03.1 81 +11.9 -02.7 82 +11.6 -03.2 83 +11.6 -03.0 84 +11.7 -02.6 85 +11.7 -02.8 86 +11.5 -02.4 ~ -01.6 <-27 L17 +09.2 <-27 V:A 10-17 dB +03.0 ~lBmV 03.0 dB 15.0 dB Ratio Ratio Min Adj Overall 14.8 Pass Pass Pass Pa~s 15.0 Pass Pass Pa~ Pass 14.6 Pass Pass Pass Pass 14.8 Pass Pass Pass Pass 14.6 Pass Pass Pass Pass 14.3 Pass Pass Pass Pass 14.5 Pass Pass Pass Pass 13.9 Pass Pass Pass Pass g*~ ATTACHMENT PAGE 36 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Headend Telephony Equipment Racks <Balance of page intentionally left blank> I.~ ATTACHMENT PAGE 37 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Headend OC-48 fiber drop termination equipment <Balance of page intentionally left blank> I,~ ATTACI-[MENT PAGE 38 PHYSICAL PLANT INSPECTION Of At&t BROADBAND CABLE IN TUStIN, CALiFORNia Headend detail showing color coded cabling. <Balance of page intentionally left blank> I.~ ATTACHMENT PAGE 39 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Headend air conditioning system (1 of 2 air conditioners shown) <Balance of page intentionally left blank> IATTACHMENT PAGE 40 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Headend 48 Vdc uninterruptible powering system (with batteries) <Balance of page intentionally left blank> I.~ ATTAClfMENT PAGE 41 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Attachment 2: .FCC Rules A2 This attachment contains the full text of the FCC signal quality rules (cite as: 47 C.F.R. §76.605): §76.605 Technical standards (a) As of December 30, 1992, unless otherwise noted, the following requirements apply to the performance of a cable television system as measured at any subscriber terminal with a matched impedance at the termination point or at the output of the modulating or processing equipment (generally the headend) of the cable television system or otherwise as noted. The requirements are applicable to each NTSC or similar video downstream cable television channel in the system: (1) (i) The cable television channels delivered to the subscriber's terminal shall be capable of being received and displayed by TV broadcast receivers used for off-the-air reception of TV broadcast signals, as authorized under part 73 of this chapter; and (ii) Cable television systems shall transmit signals to subscriber premises equipment on frequencies in accordance with the channel allocation plan set forth in the Electronics Industries Association's "Cable Television Channel Identification Plan, EIA IS-132, May 1994" (EIA IS- 132). This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 522(a) and 1 CFR Part 51. Cable systems are required to use this channel allocation plan for signals transmitted in the frequency range 54 MHz to 1002 MHz. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 522(a) and 1 CFR Part 51. Copies of EIA IS-132 may be obtained from: Global Engineering Documents, 2805 McGraw Ave, Irvine CA 92714. Copies of EIA IS-132 may be inspected during normal business hours at the following locations: Federal Communications Commission, 1919 M Street, NW, Dockets Branch (Room 239), Washington, DC, or the Office of the Federal Register, 800 North Capitol Street, NW., suite 700, Washington, DC. This requirement is applicable on May 31, 1995, for new and re-built cable systems, and on June 30, 1997, for all cable systems. (2) The aural center frequency of the aural carder must be 4.5 MHz +/- 5 kHz above the frequency of the visual carder at the output of the modulating or processing equipment of a cable television system, and at the subscriber terminal. I,~ ATTACHMENT PAGE 42 · PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIfORNia (3) The visual signal level, across a terminating impedance which correctly matches the intemal impedance of the cable system as viewed from the subscriber terminal, shall not be less than 1 millivolt across an intemal impedance of 75 ohms (0 dBmV). Additionally, as measured at the end of a 30 meter cable drop that is connected to the subscriber tap, it shall not be less than 1.41 millivolts across an intemal impedance of 75 ohms (+3 dBmV). (At other impedance values, the minimum visual signal level, as viewed from the subscriber terminal, shall be the square root of0.0133(z) millivolts and, as measured at the end of a 30 meter cable drop that is connected to the subscriber tap, shall be 2 times the square root of 0.00662(z) millivolts, where Z is the appropriate impedance value). (4) The visual signal level on each channel, as measured at the end of a 30 meter cable drop that is connected to the subscriber tap, shall not vary more than 8 decibels within any six-month interval which must include four tests performed in six-hour increments during a 24-hour period in July or August and during a 24-hour period in January or February, and shall be maintained within: (i) 3 decibels (dB) of the visual signal level of any visual carder within a 6 MHz nominal frequency separation; (ii) 10 dB of the visual signal level on any other channel on a cable television system of up to 300 MHz of cable distribution system upper frequency limit, with a 1 dB increase for each additional 100 MHz of cable distribution system upper frequency limit (e.g., 11 dB for a system at 301-400 MHz; 12 dB for a system at 401-500 MHz, etc.); and (iii) A maximum level such that signal degradation due to overload in the subscriber's receiver or terminal does not occur. (5) The rms voltage of the aural signal shall be maintained between 10 and 17 decibels below the associated visual signal level. This requirement must be met both at the subscriber terminal and at the outputs of the modulating and processing equipment (generally the headend). For subscriber terminals that use equipment which modulate and demodulate the signal (e.g., baseband converters), the rms voltage of the aural signal shall be maintained between 6.5 and 17 decibels below the associated visual signal level at the subscriber terminal. (6) The amplitude characteristic shall be within a range of+/- 2 decibels from 0.75 MHz to 5.0 MHz above the lower boundary frequency of the cable television channel, referenced to the average of the highest and lowest amplitudes within these frequency boundaries. (i) Prior to December 30, 1999, the amplitude characteristic may be measured after a subscriber tap and before a converter that is provided and maintained by the cable operator. (ii) As of December 30, 1999, the amplitude characteristic shall be measured at the subscriber terminal. l.~ ATTACHMENT PAGE 43 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA (7) The ratio of RF visual signal level to system noise shall be as follows: (i) From June 30, 1992, to June 30, 1993, shall not be less than 36 decibels. (ii) From June 30, 1993 to June 30, 1995, shall not be less than 40 decibels. (iii) As of June 30, 1995, shall not be less then 43 decibels. (iv) For class I cable television channels, the requirements of paragraphs (a)(7)(i), (a)(7)(ii) and (a)(7)(iii) of this section are applicable only to: (A) Each signal which is delivered by a cable television system to subscribers within the predicted Grade B contour for that signal; (B) Each signal which is first picked up within its predicted Grade B contour; (C) Each signal that is first received by the cable television system by direct video feed from a TV broadcast station, a low power TV station, or a TV translator station. (8) The ratio of visual signal level to the rms amplitude of any coherent disturbances such as intermodulation products, second and third order distortions or discrete-frequency interfering signals not operating on proper offset assignments shall be as follows: (i) The ratio of visual signal level to coherent disturbances shall not be less than 51 decibels for noncoherent channel cable television systems, when measured with modulated carriers and time averaged; and (ii) The ratio of visual signal level to coherent disturbances which are frequency-coincident with the visual carder shall not be less than 47 decibels for coherent channel cable systems, when measured with modulated carriers and time averaged. (9) The terminal isolation provided to each subscriber terminal: (i) Shall not be less than 18 decibels. In lieu of periodic testing, the cable operator may use specifications provided by the manufacturer for the terminal isolation equipment to meet this standard; and (ii) Shall be sufficient to prevent reflections caused by open-circuited or short-circuited subscriber terminals from producing visible picture impairments at any other subscriber terminal. (10) The peak-to-peak variation in visual signal level caused by undesired low frequency disturbances (hum or repetitive transients) generated within the system, or by inadequate low frequency response, shall not exceed 3 percent of the visual signal level. Measurements made on a single channel using a single modulated carrier may be used to demonstrate compliance with this parameter at each test location. [.~ ATTACHMENT PAGE 44 PHYSICAL PLANT INSPECTION OF At&t BROADBAND CABLE IN TUSTIN, CALIFORNIA (11) As of June 30, 1995, the following requirements apply to the performance of the cable television system as measured at the output of the modulating or processing equipment (generally the headend) of the system: (i) The chrominance-luminance delay inequality (or chroma delay), which is the change in delay time of the chrominance component of the signal relative to the luminance component, shall be within 170 nanoseconds. (ii) The differential gain for the color subcarder of the television signal, which is measured as the difference in amplitude between the largest and smallest segments of the chrominance signal (divided by the largest and expressed in percent), shall not exceed +/- 20%. (iii) The differential phase for the color subcarrier of the television signal which is measured as the largest phase difference in degrees between each segment of the chrominanc~ signal and reference segment (the segment at the blanking level of 0 IRE), shall not exceed +/-10 degrees. (12) As an exception to the general provision requiring measurements to be made at subscriber terminals, and without regard to the type of signals carried by the cable television system, signal leakage from a cable television system shall be measured in accordance with the procedures outlined in §76.609(h) and shall be limited as follows: Frequencies Signal leakage limit (microvolts/meter) Up to and include 54 MHz: 15 Over 54 up to and including 216 MHz: 20 Distance in meters(m) 30 3 (b) Cable television systems distributing signals by using methods such as nonconventional coaxial cable techniques, noncoaxial copper cable techniques, specialized coaxial cable and fiber optical cable hybridization techniques or specialized compression techniques or specialized receiving devices, and which, because of their basic design, cannot comply with one or more of the technical standards set forth in paragraph (a) of this section, may be permitted to operate: Provided, that an adequate showing is made pursuant to §76.7 which establishes that the public interest is benefited. In such instances, the Commission may prescribe special technical requirements to ensure that subscribers to such systems are provided with an equivalent level of good quality service. Note 1' Local franchising authorities of systems serving fewer than 1000 subscribers may adopt standards less stringent than those in §76.605(a). Any such agreement shall be reduced to writing and be associated with the system's proof-of-performance records. Note 2: For systems serving rural areas as defined in §76.5, the system may negotiate with its local franchising authority for standards less stringent than those in §§76.605(a)(3), 76.605(a)(7), 76.605(a)(8), 76.605(a)(10) and 76.605(a)(11). Any such agreement shall be reduced to writing and be associated with the system's proof- of- performance records. Note 3: The requirements of this section shall not apply to devices subject to the provisions of § § 15.601 - 15.626. 1-~ ATTACHMENT PAGE 45 PHYSICAL PLANT INSPECTION Of AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA Note 4: Should subscriber complaints arise from a system failing to meet §76.605(a)(6) prior to December 30, 1999, the cable operator will be required to provide a converter that will allow the system to meet the standard immediately at the complaining subscriber's terminal. Further, should the problem be found to be system-wide, the Commission may order all converters on the system be changed to meet the standard. Note 5: Should subscriber complaints arise from a system failing to meet §76.605(a)(10), the cable operator will be required to remedy the complaint and perform test measurements on §76.605(a)(10) containing the full number of channels as indicated in §76.601 (b)(2) at the complaining subscriber's terminal. Further, should the problems be found to be system-wide, the Commission may order the full number of channels as indicated in §76.601 (b)(2) be tested at all required locations for future Proof-of-performance tests. Note 6: No State or franchising authority may prohibit, condition, or restrict a cable system's use of any type of subscriber equipment or any transmission technology. Reproduced from Cable TV LawManager-Copyright © 1992-2002 etrok. Jackson Hole, WE. All Rights Reserved. http ://www. etrok, com. Reprinted with permission. I*~ ATTACI-tMENT PAGE 46 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUStIN, CALIFORNIA Attachment 3: About the Inspector A3 STATEMENT OF QUALIFICATIONS AND EXPERIENCE JONATHAN L. KRAMER, JD, FSCTE, FIAE Licensed by the Federal Communications Commission (General Radiotelephone Operator License PG-11-35289, with Ship Radar Endorsement) (Previously licensed as a Second Class Radio Telephone Operator, September 1975; First Class Radio Telephone Operator, November 1977; General Radiotelephone Operator License, June 1987) Licensed by the Federal Communications Commission as an amateur radio operator since November 1970; currently licensed as an Advanced Class operator (KD6MR) Licensed by the State of California (CSLB C7 433113; licensed since December 1982) Former National Board of Directors member, National Association of Telecommunications Officers and Advisors (NATOA), an affiliate of the National League of Cities (Terms: 1997-2000, 1992-1994) Former Co-chair of National Technical Standards Committee appointed by NATOA, National League of Cities, and US Conference of Mayors to develop the national technical standards for cable television systems adopted by the FCC in February 1992 NATOA's 1997 Member of the Year (honored for information delivery to NATOA members) NATOA's 1991 Member of the Year (honored for achievements in developing and negotiating national cable television technical standards) I*~ ATTACHMENT PAGE 47 PHYSICAL PLANT INSPECTION OF AT&t BROADBAND CABLE IN TUSTIN, CALIFORNIA Former Co-chair of National Technical Standards committee appointed by NATOA, National League of Cities, and US Conference of Mayors to develop the national technical standardized testing manual to determine compliance with the FCC rules Senior Member of Society of Cable Telecommunications Engineers (Senior Member since April 1993; Member since 1981) Fellow, Institute for the Advancement of Engineering (FIAE) (Nominated by Institute of Electrical and Electronics Engineers) Member, International Right of Way Association Witness before the FCC in Cable TV re-regulation hearings, March 1990, representing NATOA, et al Right-of-Way engineering and management expertise related to telecommunications networks and radio communications siting Testifying expert witness in federal and state court cases Technology speaker at every NATOA National Conference since 1988; Technology speaker at many regional and local NATOA meetings Communications technology speaker at Society of Cable Telecommunications Engineers conferences arid cable industry conferences Published author of book and magazine articles on communications technology, plant safety, construction, and administration Cable system engineering and technical management experience six years before forming firm; Chief Technician, Technical Manager, Regional Engineer. Former Field Engineering Representative for Motorola Communications and Electronics, Area F Program Management team -- Areas of experience include microwave radio; baseband RF and audio; digital signaling; UHF and VHF two-way radio (including high stability Simulcast® radio operations); telephony; and command and control communications. Graduate degree: Juris Doctor degree cum laude Abraham Lincoln University School of Law (2001); Undergraduate education at CSUN, UCLA, LATTC, and WLAC; AS Degree in Radio Communications (with honors), Los Angeles Trade Technical College. <Balance of page intentionally left blank> I.~ ATTACHMENT PAGE 48 PHYSICAL PLANT INSPECTION OF AT&T BROADBAND CABLE IN TUSTIN, CALIFORNIA The following is apartial list of the agencies and communities and agencies we are serving, or have served, since 1984. Federal Agencies National Associations States Federal Communications Commission U.S. Department of Justice National Association of Telecommunications Officers and Advisors Society of Cable Telecommunications Engineers United States Attorney; Los Angeles United States Army; Ft. Irwin, CA U.S. Marine Corps; Twentynine Palms, CA U.S. Navy; Postgraduate School, Monterey, CA United States Conference of Mayors National Association of Counties National League of Cities State of Michigan Public Utilities Commission State of Connecticut Department of Public Utility Control Communities Aiken county, sc Alcoa, TN Anaheim, CA Ansonia, CT Apache Junction, AZ Austin, TX Avon, CT Avon, OH Azusa, CA Barrington, IL Beacon Falls, CT Bellbrook, OH Belmont, CA Berkeley, CA Berlin, CT Bethany, CT Bethel, CT Beverly Hills, CA Big Bear Lake, CA Birmingham, AL Blount County, TN Bozrah, CT Branford, CT Brisbane, CA Bristol, CT Bronxville, NY Buffalo Grove, IL Burlington, CT Butte County, CA Calabasas, CA Calimesa, CA Canandaigua, NY Canton, CT Canton, Michigan Capitola, CA Centerville, OH Chelan, WA Chester, CT Chino, CA Chula Vista, CA Cleveland Heights, OH Clinton, CT Colchester, CT Colton, CA Corona, CA Cypress, CA Danbury, CT Darien, IL Deep River, CT Deerfield Beach, FL Denver, CO Derby, CT Diamond Bar, CA Downers Grove, IL Duarte, CA Dubuque, IL Durham, CT Eagan, MN East Haven, CT East Lyme, CT East Milton, OH Eastchester, NY Eau Claire, WI Eden Prairie, MN Edina, MN Elbum, IL Elk Grove Village, IL Escondido, CA Essex, CT Farmington, CT Flora, IL Fort Wayne, IN Foster City, CA Franklin, CT Franklin, KY Fremont, CA Fullerton, CA Garden Grove, CA Gardena, CA Germantown, OH Glen Ellyn, IL Glendale, CA Greenville, IL Griswold, CT Guilford, CT Haddam, CT Half Moon Bay, CA Hamden, CT Hermosa Beach, CA Hidden Hills, CA Highland Park, IL Highland, CA Hoffman Estates, IL Homewood, AL Homewood, IL Hopkins, MN I.~ ATTACHMENT PAGE 49 PHYSICAL PLANT INSPECTION Of AT&T BROADBAND CABLE IN TUSTIN, CALIfORNIa Indian Wells, CA Inver Grove Heights, MN Irvine, CA Kettering, OH Killingly, CT Killingworth, CT La Mesa, CA La Quinta, CA Laguna Beach, CA Lake County, IL Lake County, IN Lilydale, MN Lisbon, CT Lompoc, CA Los Alamos, CA Los Altos, CA Los Angeles County, CA Los Angeles, CA Lynchburg, VA Madison, CT Malibu, CA Maryville, TN Mendota Heights, MN Mendota, MN Merrillville, IN Miamisburg, OH Middlebury, CT Millbrae, CA Minnetonka, MN Modesto, CA Monterey County, CA Montville, CT Mount Carmel, IL Mount Prospect, IL Mountain View, CA Munster, IN Naugatuck, CT New Britain, CT New Haven, CT New London, CT New Martinsville, WV New Orleans, LA Newton Falls, OH Niles, IL North Aurora, IL North Branford, CT North Haven, CT Norwich, CT Oakwood, OH Ojai, CA Old Saybrook, CT Olean, NY Opelika, AL Orange County, CA Oxford, CT Oxnard, CA Paris, IL Park Forest, IL Peoria County, IL Pinal County, AZ Piqua, OH Plainfield, CT Plainville, CT Plymouth, CT Plymouth, MI Pocatello, ID Port Townsend, WA Portland, OR Poway, CA Preston, CT Prior Lake, MN Prospect, CT Putnam, CT Redondo Beach, CA Redwood City, CA Rialto, CA Richfield, MN Richmond, CA Ridgefield, CT Riverside, CA Rochester, MN Rolling Meadows, IL Roseville, MN San Bernardino County, CA San Carlos, CA San Clemente, CA San Diego County, CA San Diego, CA San Francisco, CA San Juan Capistrano, CA San Luis Obispo County, CA San Luis Obispo, CA San Marcos, CA San Mateo, CA San Mateo County, CA Santa Ana, CA Santa Barbara County, CA Santa Clara, CA Santa Cruz County, CA Santa Maria, CA Santa Monica, CA Savage, MN Seymour, CT Shelton, CT Sistersville, WV Solon, OH South St. Paul, MN Spokane, WA Sprague, CT Springboro, OH St. Louis, Missouri Sterling, CT Stevens Point, WI Sunfish Lake, MN Sunnyvale, CA Sutter County, CA Thousand Oaks, CA Tipp City, OH Torrance, CA Troy, OH Tuckahoe, NY Tucson, AZ Tustin, CA Ventura County, CA Victoria, TX Wallingford, CT Walnut Creek, CA Waterbury, CT Waterford, CT West Allis, WI West Carrollton, OH West Covina, CA West Frankfort, IL West Haven, CT West Hollywood, CA West Milton, OH West St. Paul, MN Westbrook, CT Wheaton, IL White Plains, NY Willmette, IL Wolcott, CT Yellow Springs, OH Yorba Linda, CA Yucaipa, CA I.~ ATTACItMENT PAGE 50 PHYSICAL PLANT INSPECTION OF at&t BROADBAND CABLE IN TUStIN, CaLIFORNIa Universities, Colleges, School Districts University of California, Los Angeles University of Alabama Pepperdine University Orange Coast College Rancho Santiago College Centralia School District Oxnard Union School District Liti~ation Adelphia Cable v. City of Thousand Oaks [and countersuit] (Expert witness for City) AT&T Wireless v. City of San Diego (Expert witness for City) GTE MobileNet v. City and County of San Francisco (Expert witness for City and County) Playboy Enterprises v. US (Expert witness for US DOJ and FCC) US Cellular v. Peoria County (Expert Witness for Peoria County) Jones Intercable v. Chula Vista (Expert Witness for City of Chula Vista) West Covina v. Charter Communications (Expert Witness for City of West Covina) Sierra East Television v. Westar Cable (Expert witness for Sierra East Television) Booth American v. US (Expert witness for US DO J) D. B. Cable v. Kalma Busk (Expert witness for Kalma Busk) Selected Lectures Law Seminars International International Right of Way Association Washington Association of Cities NATOA National Conference (Every conference since 1988) NATOA Southern California and Nevada Chapter (Multiple Presentations) NATOA Illinois Chapter (Multiple presentations) NATOA Minnesota Chapter NATOA Texas Chapter Society of Cable Telecommunications Engineers National Engineering Conference Society of Cable Telecommunications Engineers (Multiple Chapters) <End of Attachments> <Balance of page intentionally left blank> I.~ ATTACHMENT PAGE 51 EXHIBIT E COUNTY CABLE TV SUBSCRIBER STATISTICS o~ ::3 Z 0 i o o 0 o 0 EXHIBIT F CITY COMPLIANCE LETTERS Office of the City Manager I1~1 [ Fq ~ I II I I I I Juice 4, 2002 VIA CERTIFIED MAIL '1~,~ I .....,Z, 11111 b',J,",r,,o OEP_T:,,,, AT&T Broadband ~STIN~,,, ,, PUBLIC ~""'~'""~ Attn' Perry Parks, V.P., Franchising and Local Government Affairs 550 N. Continental Blvd., Ste. 250 El Segundo, CA 90245 --";'" City of Tustin 300 Centennial Way Tustin, CA~_¢.,u"'P'"~"' 714.573.301 0 FAX 714.838.1602 Re: NOTICE OF AT&T BROADBAND (MEDIA ONE) FRANCHISE VIOLATION Non-Compliance Order for Violation of: Section 2 of Franchise Ordinance No. 1002, Tustin City Code §§ 7418(h) & 8400, Health & Safety Code § 18938(b) [California Electrical Code], and California Public Utilities Commission General Order NoS. 95 & 128. Dear Mr. Parks: -l'he City of Tustin has recently completed a physical plant inspection of AT&T Broadband's (Media One's) CATV System within the City. The physical plant inspection reveals that AT&T Broadband is in violation of the various statutory and regulatow prcvisions cited above. More specifically, random inspections revealed improperly grounded subscriber drops (some were not grounded at all), loose wiring, improper clearances from conflicting electrical and energy sources. The insoection re.r.)orl enclosed herein identifies the specific locations sL~rveyed and the violation~ identified.' Ail of these violations involve issues of safety and fire-prevention. The City's consultant estimates that the number of similar violations in the rest of the System may exceed 1 or 000. Due to the immeasurable health and safety risks presented by the foregoing violations, AT&T Broadband (Media One)is ;":, '~' '. ' - ' ..~lr..c~..o ~o immediately commence rnakir~g al! necessary corrections to comp!y with the above-referenced safety and fire prevention regulations at all of the Iocatior.,s identified in the enclosed inspection report. No later than ten (10) business days from the date of receipt of this Order, AT&T Broadband shall deiiver to the City a written report describing its corrective action plan for the identified locations and estimated time for completion o,r the work. A follow up inspection of the corrections by the City's consultant will i:)e performeo to confirm compliance, at AT&T "'" expanse. Broadband:s (Medi..c, On~ o',', AT&T Broadband Attn: Perry Parks, V.P., Franchising and Local Government Affairs Non-compliance order Page 2 Separately, within the same period (ten (10) business days), AT&T Broadband (Media One) shall describe a plan and timetable for inspection and correction of the rest of its subscriber installations in the City to insure compliance with the foregoing regulations an'd the protection of the public's health and safety. The Plan shall provide for follow up inspection by the City's consultants to confirm compliance at AT&T Broadband's (Media One's) expense. Thank you for your anticipated cooperation. We look forward to resolving this issue promptly. Sincerely, City Manager Enclosure 6¢: Tim D. Serlet, Director of Public Works/City Engineer Lois E. Jeffrey, City Attorney William T. Schleyer, President & C.E.O. AT&T Broadband, LLC, 188 Inverness Drive West Englewood, CO 80112 Office of the City Manager June 4, 2002 VIA CERTIFIED MAIL City of Tustin 300 Centennial Way Tustin, CA 92780 714.573.3010 FAX 714.838.1602 Perry Parks AT&T Broadband 550 N. Continental Blvd., Suite 250 El Segundo, CA 90245 Fax: 310-647-3036 Re: Merger of AT&T Broadband and Comcast Corporation City of Tustin CATV Franchise Dear Mr. Parks: The City has reviewed your letter and information .sent on March '4, 2002, about AT&T Broadband's pending merger with Comcast Corporation. We disagree with the statement that Tustin's franchise does not require the City's consent to the transaction. Notwithstanding that Tustin's franchisee corporation will remain the same, i.e., Media One, Section 5 of Franchise Ordinance No. 1002 and Tustin City Code Section 7418(d) require the City's consent for mergers. Additionally, Tustin City Code Section 7418(d) provides: "In the event that Grantee is a corporation, priOr approval of the City Council, expressed by resolution, shall be required where there is an actual chanqe in control or where ownership of more than 50% of the voting stock of Grantee is acquired by a person or a group of persons acting in concert, none of whom already own 50% or more of the voting stock, singly or collectively. Any such acquisition occurring without prior approval of the City Council shall constitute a failure to comply with a provision of the Chapter within the meaning of Section 7414." (Emphasis added). Perry Parks AT&T Broadband Page 2 We note that at the completion of the merger, all of the voting stock of the franchisee will be owned by a completely new company, thus triggering the City Council's consent for the proposed merger. Please initiate the consent process pursuant to FCC regulations. Sincerely, William A. Huston City Manager cc: AT&T Broadband, LLC Attn.: William T. Schleyer, President & C.E.O. 188 Inverness Drive West, Room 6-042 Englewood, CO 80112 Fax: 303-858-3615 Federal Communications Commission Re: AT&T/Comcast Merger 445 12t~ Street, S.W. Washington, D.C. 20554 Lois E. Jeffrey, City Attorney Tim D. Serlet, Director of Public Works 15 0079/1 Office of the City Manager II June 4, 2002 VIA CERTIFIED MAIL City of Tustin 300 Centennial Way Tustin, CA 92780 714.573.3010 FAX 714.838.1602 AT&T Broadband (Media One) Attn: Perry Parks, V.P., Franchising and Local Government Affairs 550 N. Continental Blvd., Ste. 250 El Segundo, CA 90245 Re: NOTICE OF AT&T BROADBAND (MEDIA ONE) FRANCHISE VIOLATION Non-Compliance Order. for Violation of California Cable Television and Video Provider Customer Service and Information Act (Government Code §53054, et seq.) Dear Mr. ParkS: The City of Tustin has recently completed a review of AT&T's Customer Procedures pursuant to Government Code section 53055.2. This review indicates that AT&T Broadband (Media One) is in violation of the California Cable Television and Video Provider Customer Service and Information Act (Government Code' §53054, et seq.), specifically Government Code §53055.2, by failing to. distribute to all subscribers a yearly report on its performance in meeting its customer service standards. This.requirement of State law is incorporated into the Franchise (See, Sec. 2 of Ordinance 1002, and Tustin City Code §§ 7418(h) and 7525(c) (2)). Specifically, while AT&T provides annual notice of its Policies and Practices, it does not include a report "with regard to meeting its customer service standards." Government Code section 53055.2 provides: "After the customer service standards established pursuant to Section 53055 have been in effect fOr one year, each cable television operator and video provider sh'all report annually on the performance of that cable television operator or video provider with regard to meeting its customer service standards. This report shall be included in the annual notice required by Section 53055.1 ." If AT&T Broadband (Media One) does not respond to this Non-Compliance Order and provide the City of Tustin with written cOnfirmation that the violation described herein has been corrected within 60 days from receipt of this Notice, the City of Tustin shall consider 'the imposition of monetary penalties pursuant to Tustin City Code § 7425(c)(2) and Government Code § 53056. AT&T Broadband Attn: Perry Parks, V.P., Franchising and Local Government Affairs Non-compliance Order Page 2 Thank you for your anticipated cooperation. without the need for monetary penalties. City Manager We look forward to resolving this issue CC: Tim D. Sedet, Director of Public Works/City Engineer Joe Meyers, Administrative Services Manager Lois E. Jeffrey, City Attorney Internet July 12, 2002 Office of the City Manager II City of Tustin 300 Centennial Way Tustin, CA 92780 714.573.3010 FAX 714.838.1602 Perry C. Parks III Vice President, Franchising and Local Government Affairs AT&T Broadband 550 N. Continental Blvd., Ste. 250 El Segundo, CA 90245 TUSTIN PUBLIC WORKS DEP'I'. ! Re: Chanqe of Control of Media One of Los Angeles, Inc. Dear Mr. Parks: Thank you for your correspondence dated June 21, 2002, pertaining to the change of control of Media One of Los Angeles, Inc. In your correspondence, you reassert Media One's position that the absence of '"change of control"" language in the Franc~hise Agreement reflects the intention of the parties that prior consent is not required for parent level mergers that result in the change of control of the franchisee but not a transfer of the franchise. I have reviewed this matter, with the City Attorney, and the City emphatically disagrees. Nowhere in the Franchise Agreement does it state that the parties intended .to not require consent for parent level mergers. Instead, Article 7, Chapter 4 of the Tustin City Code, Section 7418[d], specifically requires prior approval of the City Council where there is an actual "change in control" of the franchisee. Although Section 27 of the Franchise Agreement provides that its express terms shall prevail over conflicting or inconsistent provisions of Article 7, Chapter 4 of the Tustin City Code, the absence of "change of control" language does not create such a conflicting or inconsistent provision in the' Franchise' Agreement with Section 7418Id] of the Tustin City Code. Instead, Section 1 of the Franchise Agreement provides that the terms of the Franchise Agreement are subject to all of the provisions, terms and conditions of Article 7, Chapter 4 of the Tustin City Code, which includes Section 7418[d]. Before a court can enforce Media One's position, the court would have to read a nonconsent provision into the Franchise Agreement, whereas the City's position is expressly supported by the Tustin City Code, which Section 1 of the Franchise Agreement incorporates by reference. Perry C, Parks III July 12, 2002 Page 2 Additionally, Section 7418Id] of the Tustin City Code is and was at the time of the grant of the Franchise Agreement, applicable law in. the City, and Media One is charged with having knowledge of the law [which the Franchise Agreement. expressly incorporated by reference], Again, there is no indication that the City and Media One ever intended to change the law; Section 1 of the Franchise Agreement instead expressly indicates that the parties incorporated the law into the Franchise Agreement. For the foregoing reasons, Media One will be in violation of the Franchise Agreement and the Tustin City Code should AT&T merge with Comcast without the City's consent. Once again, we ask that you initiate the consent process by sending the City the FCC Form 394 application and supporting material. Sincerely, City Manager CC; AT&T Broacibar~d, LLC Attn.: William T. Schleyer, President & C.E.O. 188 Inverness Drive West, Room 6-042 Englewood, CO 80112 Fax [303] 858-3615 Fecleral Communications Commission Re: AT&T/Comcast Merger 445 12"~ Street, S.W. Washington, D.C. 20554 Tim D. Serlet, Dir. Public Works/City Engineer Joe Meyers, Actministratlve Services Manager Lois E. Jetfrey, City Attorney Omar Sandoval, .Esq. Office of the City Manager July 22, 2002 Perry C. Parks I!1 Vice President, Franchising and Local Government Affairs AT&T Broadband 550 N. Continental Blvd., Ste. 250 El Segundo, CA 90245 City of Tustin 300 Centennial Way Tustin, CA 92780 714.573.3010 FAX 714.838.1602 Re: NOTICE OF AT&T BROADBAND (MEDIA ONE) FRANCHISE VIOLATION Non-Compliance Order for Violation of: Section 2. of Franchise Ordinance No. 1002, Tustin City Code §§ 7418(h) & 8400 Health & Safety Code § 18938(b) [California Electrical Code], and California Public Utilities Commission General Order Nos..95 & 128. Dear Mr. Parks: Thank you for your correspondence dated June 21, 2002, regarding the City's June 4, 2002 -Notice of Franchise Violation/Non-Compliance Order. The City is disappointed with AT&T .Broadband's (Media One's) inadequate response to the City's concerns. The City's direction in the June 4, 2002 Order was quite clear. Nevertheless, I will restate the City's position in this matter and once again demand full compliance with the Order involving AT&T Broadband's (Media One's) public health and safety violations. Due to the health and safety risks presented by the identified violations, AT&T Broadband (Media One) was directed to immediately commence making all necessary corrections to comply with the safety and fire prevention regulations referenced in the June 4, 2002 letter at all of the locatiOns identified in the enclosed report. AT&T Broadband (Media One) was to deliver to the City a written report describing its corrective action plan for the identified locations and estimated time for completion of the work no later than ten (10) business days from the date of receipt of that Order. Within the same period (ten (10) business days), AT&T Broadband (Media One) was to submit a plan and timetable for inspection and correction of the rest of its subscriber installations in the City to insure compliance with the foregoing regulations and the protection of the public's health and safety. The Plan was to provide for follow up inspection by the City's consultants to confirm compliance at AT&T Broadband's (Media One's) expense. Perry C. Parks III July 22, 2002 Page 2 While your June 21, 2002 letter states that these efforts have commenced, AT&T Broadband (Media One) has not provided the City with any details on its corrective efforts. For that reason, the June 21, 2002 letter is non-responsive to the City's June 4, 2002 Order. A prompt reply and complete response to the City's concerns is anticipated. Sincerely, City Manager CC; AT&T Broadband, LLC Attn.: William T. Schleyer, President & C.E.O. 188 Inverness Drive West, Room 6-042 Englewood, CO 80112 Fax (303) 858-3615 Tim D. Serlet, Dir. Public Works/City Engineer Joe Meyers, Administrative Services Manager Lois E. Jeffrey, City Attorney Omar Sandoval, Esq. EXHIBIT G AT&T RESPONSE LETTERS AT&T June 21, 2002 Mr. William A. Huston City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 rrus RE: Physical Plant Inspection - AT&T Broadband Dear Mr. Huston: I am writing in resPonse to you r letter dated June 4, 2002, transmitting a report on the inspection of AT&T Broadband's physical plant in Tustin. Upon receipt of the report I immediately distributed it to appropriate personnel within the company. Since then we have been in the process of inspecting and, where necessary, taking corrective action at the locations identified in the report. We estimate that this process will be completed in approximately three weeks, and we will then be in a position to begin preparing our response to the report. At that time we will respond to your request regarding inspection of subscriber installations that were not identified in the report, as well as your request for a subsequent inspection of the locations that were. In the meantime, I want to alert you to the fact that cable subscriber address information is "personally identifiable subscriber information", the release of which is prohibited under Section 631 of the Cable Act. Accordingly, we request that the City redact the subscriber address information from any copies of the report that are released to the public. Regards, ~Vi resid, ent, Franchising and Local Government Affairs Cc: Del Heintz, AT&T Broadband Lois E. Jeffrey, City Attorney; City of Tustin Tim D. Serlet, Director of Public Works, City of Tustin ~D'(;:~ Recycled Paper AT&T Bro:ad ban d CITY OF TUSTIN PLANT INSPECTION/REPAIRS Compiled by JD Pinckney, July, 2002 CITY OF TUSTIN PLANT INSPECTION/REPAIRS AT&T'S INVESTIGATION AT&T recently received a list of 175 alleged code violations in the City of Tustin. Since then we have examined and dealt with each 0f these items. This report illustrates detailed information regarding the inspection and resolution of these items. The items are categorized by type and/or resolution: (1) Construction; (2) Wiring issues; (3) MDU (Multiple Dwelling Unit) issues; (4) Grounding issues; (5) Not an AT&T customer (drop removed); (6) Not in AT&T's system; (7) Not in violation TYPES OF ALLEGED VIOLATIONS AND/OR RESOLUTIONS Here, we examine the number of items by category. 1) Construction issues. 25 items were repaired. 12 items, the most 29 common infraction is "missing guy guards ", one item is Edison's responsibility. 2) Wiring issues. We repaired or replaced the wiring. (One item is pending customer contact.) 3) 4) MDU (Multiple Dwelling Unit) Issues. Repaired the ground. Grounding issues. Repaired the ground. (Two items are pending customer contact) 41 5) Not an AT&T customer. These items were found to be either 45 satellite customers or non-AT&T customers. (We removed any existing cable drop) 6) Not in AT&T's system. These items were either not found, or 25 were found to be outside of AT&T's cable plant. 7) No violation. These items were not in violation of code. They 16 were grounded in the garage or the back yard, which was not visible from the street; several pedestals found not set to grade by the inspector are not GO 128 violations and Mr. Kramer agreed to remove 3 of them from the list. Total 174 RESOLUTION DETAILS These sections illustrate resolution details by location. 1) Construction Issues 1 16031 Bliss Broken down guy guard Replaced guy guard 6-25-02 2 Alley adj to Missing down guy guard, loose wiring on MDU Replaced guy guard 6-25-02 15981Myrtle adjacent 3 6001 Pasadena Missing down guy guard Replaced guy guard 6-25-02 4 16002 Pasadena Missing down guy guard Replaced guy guard 6-25-02 5 Intersection of Newport Pole #2249673 - down guy disconnected, Replaced with split Sch. 80 and Sycamore Ave improper riser guard material. Sched 160 rather conduit. Reattached down guy. than 80 used as required. Yellow propylene rope 7-12-02 used to hold portions of cable system to pole. Cable only 16' 3" over street. 6 Intersection of Newport Yellow propylene rope used to hold portions of Rope removed. CATV facility and Sycamore Ave cable system to pole. secured to pole. 7-12-02. 7 Intersection of Newport Low trunk & distribution lines. Cable only 16' 3" Cable resagged to meet 18' of and Sycamore Ave over street, overhead clearance. 7-12-02 8 1122 Sycamore Pole # 1509838, improper riser guard material. Replaced with split Sch. 80 conduit 7-12-02 9 · Sycamore at School Ln No down guy at end of span, Broken down guy Replaced down guy 7-12-02. stapled to pole 10 Comer of Mitchell and Missing down guy guard Replaced guy guard 6-25-02 Browning Ave 11 13701 Farmington Rd Broken Vault Lid Installed 13x19 lid, replaced vault 7-12-02 12 Farmington and Bryan Cable interference with light standard Resagged strand to meet 3" of clearance 7-12-02. 13 Bryan Ave north of Interference with Telco. Cable fiber splice case is Secured fiber enclosure to Browning Ave interfering with Telco trunk cable. Clearance strand with tap brackets and problem. Use of duct tape to hold fiber cable to dressed up fiber tails with strand, snow-shoes and straps. 7-12-02 14 12186 Tustin Ranch Rd. Power supply lid open. Lid is for Edison's meter compartment. AT&T cannot place a lock. Will inform Edison to place a lock. 07/12/02 15 13192 Wickshire Broken Vault Lid Installed new lid 7-12-02 16 Across from 178 Preble Down guy not guarded Replaced guy guard 6-25-02 Dr 17 305 2nd St No down guy guard Replaced guy guard 6-25-02 18 Intersection of Pacific St Broken lashing wire Relashed and 2nd St 19 245 Pacific Street Cable and strand bent around tree branches. Rearranged CATV facilities. 20 1782 Brookshire Dog house pedestal not secured Remount and secure cover 6-25-02 21 Across from 1782 OTN dog house pedestal not secured Remount and secure cover. Brookshire 6-25-02. 22 Comer of C St and No down guy Replaced guy guard 6-25-02 Third 23 Comer of 2na St and C No guy guard on down guy Replaced guy guard 6-25-02 Street 24 165 North B Street Too close to power Rearranged CATV facilities. 25 Comer of B Street and Missing down guy guard 'Replaced guy guard 6-25-02 Irvine 26 Comer of W Burre Ln Down guy with no down guy guard Replaced guy guard 6-25-02 and B Street 27 17401 Norwood Park Unsecured pedestals Remount and secured cover 6-25 -02 28 17491 Norwood Park Unsecured Pedestals Remount and secured covers 6-25-02 29 Comer of Acacia and Underground Pedestals unsecured, lids dislodged Remount and secured covers Norwood Park PI 6-25-02 2) Wiring Issues 1 1971 Mitchell Low drop over pedestrian area, 7.5". Grounded to Reattached drop higher, 4' ground rod, not straight repaired ground 2 13702 Farmington Rd No ground, wiring on roof Rewired 3 13661 Farmington Rd Grounded to ground rod, poor workmanship. Rewired 4 148 C Street No ground, hits power mast, loose wiring, etc. Relocated drop, grounded 5 14392 Rosewood Dr No ground, workmanship issues Rewired 6 225 Myrtle St Drop hits power mast, too close to power Relocated drop 7 250 Pacific St Low drop Pending customer contact 8 178 Preble Drop to power riser, grounded above roof Relocated drop 9 340 2'ha St UG drop not in riser Relocated drop 3) MDU (Multiple Dwelling Unit) Issues 1 337 Preble MDU not grounded Grounded MDU 2 329 Preble MDU not grounded Grounded MDU 3 225 Preble MDU not grounded Grounded MDU 4 237 Preble MDU not grounded Grounded MDU 5 14731 Newport No ground to MDU Grounded MDU 6 MDU across from 1961 MDU Grounded to water, unknown bond to Grounded MDU Mitchell common electrical ground 7 1203 lst St MDU not grounded Grounded MDU 8 Rear of 245 Preble, Conflict with power at service head, Drop not Grounded MDU behind City Hall, MDU grounded 9 Hickoyy Branch Apts, Whole apartment complex wired with hardline Grounded MDU Sandwood Dr cable, but no visible ground at drop control box. 4) Grounding Issues 1 1412 Windemere Not properly grounded Grounded 2 1371 Windemere Not properly grounded Grounded 3 1321 Windemere Not properly grounded Grounded 4 1371 Penrith Not properly grounded Grounded 5 1611 Copperfield Not properly grounded Grounded 6 1601 Copperfield Not properly grounded Grounded 7 1642 Copperfield Not properly grounded Grounded 8 14312 Heatherfield Not properly grounded Grounded 9 13692 Farmington Not properly grounded Grounded 10 13661 Farmington Not properly grounded Grounded 11 13151 Wickshire Not properly grounded Grounded 12 570 South C Street Not properly grounded Grounded 13 305 2n~ St Not properly grounded Grounded 14 240 Pacific St Not properly grounded Grounded 15 1641 Roanoke Not properly grounded Grounded 16 14821 Devonshire Not properly grounded Grounded 17 1722 Brookshire Not properly grounded Grounded 18 1742 Brookshire Not properly grounded Grounded 19 1751 Brookshire Not properly grounded Grounded 20 1822 Brookshire Not properly grounded Grounded 21 17551 Sherbrook Dr Not properly grounded Grounded 22 17682 Miller Dr Not properly grounded Grounded 23 17681 Miller Dr Not properly grounded Grounded 24 178 North B Street Not properly grounded Grounded 25 260 Myrtle Not properly grounded Grounded 26 1662 Amhurst Not properly grounded Grounded 27 1602 Amhurst Not properly grounded Grounded 28 1732 Amhurst Not properly grounded Grounded 29 14401 Cloverbrook Not properly grounded Grounded 30 14391 Cloverbrook Not properly grounded Grounded 31 14262 Cloverbrook Not properly grounded Grounded 32 1852 Sandwood Not properly grounded Grounded 33 17752 Miller Dr Not properly grounded Grounded 34 14451 Denbigh Not properly grounded Grounded 35 14401 Wildeve Ln Not properly grounded Grounded 36 14391 Wildeve Ln Not properly grounded Grounded 37 14451 Deneigh Not properly grounded Grounded 38 1651 Copperfield Not properly grounded Grounded 39 Office building comer Not properly grounded Grounded of 2nd St and C Street 40 17521 Sherbrook Dr No visible ground, Cable drop in garage Pending customer contact 41 Complex on Via Posada No visible ground, Cable drop in garage Pending customer contact 5) Not an AT&T Customer A) Satellite Customers 1 14311 Heatherfield Not grounded Satellite customer, no cable 2 13731 Farmington Rd Grounded to ground rod, loose wiring Satellite customer, no cable 3 13165 Wickshire Not grounded Has satellite, removed drop 4 310 B Street No ground Has satellite, removed drop 5 143 C Street No ground, workmanship issues Has satellite, removed drop 6 140 North B Street Attachment point too close to power Has satellite, removed drop 7 155 North B Street No ground, loose wiring Has satellite, removed drop 8 183 North B Street No ground Has satellite, removed drop B) Non-customers 9 1361 Windemere Not grounded, unsecured wiring workmanship Not a customer, removed drop 10 1342 Windemere Not grounded, unsecured wiring workmanship Not a CUStomer, removed drop 11 1321 Penrith Not properly grounded Not a customer, removed drop 12 14461 Denbigh Lane Not grounded, loose wiring, workmanship Not a customer, removed drop 13 14481 Denbigh Lane Not grounded, loose wiring, workmanship Not a. customer, removed drop 14 1625 Copperfield Not grounded Not a customer, removed drop , 15 14282 Heatherfield Not grounded, trip hazard where wire exits Not a customer, removed drop 16 1961 Mitchell Drop runs across roof of house, not grounded Not a customer, removed drop 17 13166 Wickshire Not grounded Not a customer, removed drop 18 333 E1 Camino Real Drop hits power mast, not ground Not a customer, removed drop 19 500 South B Street No ground, drop too close to power Not a customer, removed drop 20 1642 Roanoke Ave No ground Not a customer, removed drop 21 14772 Devonshire No ground Not a customer, removed drop 22 14771 Devonshire Ground to ground rod Not a customer, removed drop 23 1652 Brookshire No ground Not a customer, removed drop 24 1682 Brookshire Grounded to ground rod Not a customer, removed drop 25 1721 Brookshire Drop goes directly into garage, not grounded Not a customer, removed drop 26 1732 Brookshire Drop goes directly into garage, not grounded Not a customer, removed drop 27 1752 Brookshire No ground visible Not a customer, removed drop 28 1762 Brookshire Grounded to ground rod Not a customer, removed drop 29 1761 Brookshire No ground Not a customer, removed drop 30 1832 Brookshire No ground Not a customer, removed drop , 31 138 North B Street No ground Not a customer, removed drop 32 165 North B Street ' Too close to power Not a customer, removed drop 33 17731 Miller Dr No ground Not a customer, removed drop 34 17721 Miller Dr No ground Not a customer, removed drop 35 17732 Miller Dr No ground Not a customer, removed drop 36 17691 Miller Dr Grounded to ground rod Not a customer, removed drop 37 17711 Miller Dr Grounded to ground rod Not a customer, removed drop 38 17692 Miller Dr No ground Not a customer, removed drop 39 17482 Via Calma No Ground Not a customer, drop in molding 40 17486 Via Calma No ground Not a customer, drop in molding 41 17472 Via Calma No Ground Not a customer, drop in molding 42 270 Myi'tle Street Drop hits power mast Not a customer, moved drop 43 1701 Amhurst No ground Not a customer, removed drop 44 1722 Amhurst No ground Not a customer, removed drop 45 14291 Cloverbrook No ground Not a customer, removed drop 6) Not in AT&T's System: Possible Cox or Adelphia Network Customers 1 14731 Newport No ground to MDU, unsecured wiring Address not in system 2 2345 Dahlia Ground wire not protected where it emerges Address not in system 3 14192 Raintree Ground wire not protected where it emerges Address not in system 4 2311 Dahlia Same as above Address not in system 5 2322 Dahlia Same as above Address not in system 6 13516 Pecan MDU not grounded Address not in system 7 2305 Boxwood Ground wire crushed by lid on prewire box Address not in system 8 2292 Boxwood MDU not grounded Address not in system 9 13515 Holly Insufficient clearance from Telco wiring Address not in system 10 12186 Tustin Ranch Power supply lid open Address not in system 11 1631 Brookshire No ground Address not in system 12 533 South C Street No ground Address not in system 13 1615 Sherbrook Dr No ground Address not in system 14 14452 Riverbrook No ground Address not in system 15 14281 Sandwood No ground Address not in system 16 14261 Sandwood No ground Address not in system 17 1148 C Street No ground, hits power mast, workmanship Address not in system 18 14191 Galy Street No ground Address not in system 19 17482 Via Coma No ground Address not in system 20 17486 Via Coma No ground Address not in System 21 17472 Via Coma No ground Address not in system 22 1631 Brookshire No ground Address not in system 23 530 South B Street Cable rubs against street light arm. No such address. Closest street light is at 520 B Street and cable already have a box ~euard. 24 Alley behind 360 No down guy guard Address not in system E1Camino Dr 25 1611 Darcy Pedestal not set correctly, not locked. Address not in system 7) No Violation 1 13711 Farmington Rd Not grounded Was grounded in backyard 2 17722 Miller Dr No ground Was grounded in backyard 3 17741 Miller Dr No ground Was grounded in garage 4 17751 Miller Dr No ground, wiring run on roof Antenna cable on roof, 5 17752 Miller Dr No ground, cable on top of ground OK, not on ground 6 17521 Sherbrook Dr No ground Was grounded in garage 7 13181 Wickshire Not grounded Was grounded in garage 8 17351 Jackarand No ground Was grounded in backyard 9 270 Myrtle Drop hits power mast Drop hits the eve 10 1642 Amhurst No ground Was grounded in garage 11 Across fi.om Pedestal not set to grade Level/height of ped base is not 1782Brookshire a GO 128 infraction and is no longer an issue per J. Kramer. 12 17661 Miller Dr. Pedestal not set to grade. Level/height of ped base is not a GO 128 infi.action and is no lon[~er an issue per J. Kramer. 13 17662 Miller Dr. Pedestal not set to grade. Level/height of ped base is not a GO 128 inti'action and is no longer an issue per J. Kratner. 14 14342 Cloverbrook Pedestal not set to grade Pedestal was properly set 15 1209 1st St Open pedestal riot set Pedestal was properly set 16 Comer of Acacia Underground Pedestals not set to grade Pedestal was properly set andNorwood Park P1 Thank You June 21, 2002 Mr. William A. Huston City Manager City of Tustin 300 Centennial Way Tustin, cA 92780 RE: Change of Control of MediaOne of Los Angeles, Inc. Dear Mr. Huston: I am writing in response to your letter dated June 4, 2002, concerning the change of control of the MediaOne of Los Angeles, Inc. ("Franchisee"), the cable franchisee providing services in the City of Tustin ("City") under the name AT&T Broadband. Your letter suggests that the City's prior consent is required for the change of control at the parent company level that will occur upon closure of the proposed merger of AT&T Broadband Corp. and Comcast Corporation. As you may know from reviewing the City's files, the City and the Franchisee have disagreed on this point for years. Our position was explained in detail in a letter sent to the City Attorney in 1996, when Continental Cablevision, Inc. and U S WEST, Inc. announced their intent to merge. In essence, our disagreement arises from the fact that in forming its opinion, the City does not take into account the terms of the ordinance granting the franchise, and relies instead on a conflicting provision in the City's Municipal Code. We believe that the granting ordinance must be taken into account, because the terrv~ of the franchise prevail over conflic~-~g or inconsistent provisions in the Municipal Code. Tustin Ordinance No. 1002, Section 27 (March 7, 1988). Although I do not know that repeating the information in our 1996 letter will bring us any closer to agreement, I believe it is appropriate to provide a brief summary of our position here. The transfer of a franchise and a change of control of a franchisee are distinct and different occurrences, either or both of which may require a franchising authority's prior consent, depending on the terms of the franchise. It is typical for cable ordinances and franchise agreements to address the two issues in the same or sequential sections, if both are addressed..~ ~ This reflects a general understanding in the industry that the two concepts are related, but distinct.' For example, FCC Form 394 is designed to be used both for a transfer, or assignment, of a franchise, and for a ~ Recycled Paper Page 2 of 2 Mr. William Huston / City of Tustin June 21, 2002 The Tustin Municipal Code addresses both in Section 7418(d). In many cases, however, a franchising authority's consent is required only for a transfer of the franchise and not for a change of control of the franchisee, in which case the document is generally silent on the issue of change of control. That is the case with Ordinance No. 1002, which states the terms on which a cable franchise was granted to MediaOne of Los Angeles, Inc. (formerly known by the name American Cablesystems of California, Inc.). Section 5 of Ordinance No. 1002 states that the City's prior consent is required if the franchise is "transferred, leased, or assigned or disposed of", but the ordinance does not require the City's consent for a change of control of the franchisee. Under the principle of contract and statutory construction known as expressio unius est excIusio alterius - the expression of one thing is the exclusion of another - the inclusion of transfer of franchise language and the exclusion of change of control language reflects the intention of the parties that prior consent is not required for parent level mergers that result in a change of control of the franchisee but not a transfer of the franchise. Section 27 of Ordinance No. 1002 expressly states that the franchise is a contract between the City and the Franchisee, and that the express terms of the franchise prevail over any conflicting or inconsistent provisions in Article 7, Chapter 4 of the Tustin Municipal Code. Accordingly, the terms of Section 5 of Ordinance No. 1002 prevail over Section 7418(d) of the Tustin Municipal Code. The City's prior consent is not required for a change in control of the Franchisee. As in the past, ! would be happy to provide the City of Tusffn with a copy of our FCC Form 394, for informational purposes. I also want to assure you that after the proposed merger of AT&T Broadband Corp. and Comcast Corporation, MediaOne of Los Angeles, Inc. will remain in place, will continue to own the cable system in Tustin,' and will continue to be fully bound by all lawful franchise obligations. Please let me know if the City would like an informational copy of our FCC Form 394, and please feel free to call me on 310/647-3056 if you have any questions about the matters addressed in this letter. Regards, ~Vice,Pre: sident, Franchising and Local Government Affairs Cc: Del Heintz, AT&T Broadband Lois E. Jeffrey, City Attorney, City of Tustin Tim D. Serlet, Director of Public Works, City of Tustin change of control of a franchisee. The form provides separate boxes to be checked depending on which applies. AT&T June 27, 2002 Mr. William A. t-Iuston City, Manager City of Tustin 300 Centennial Way Tustin, CA 92780 AT&T Broadband 550 N. Continental Boulevard Suite 250 El Segundo, CA 90245 TLI N PUBLIC WORKS DEPT. IIII I RE: Government Code § 53055.2 - AT&T Broadband Dear Mr. Huston: I am writing in response to you r letter dated June 4, 2002, regarding Cal. Government Code § 53055.2. During the month of July we will begin reporting to subscribers in the City of Tustin on our performance during the prior year with regard to the customer service standards referenced in Cal. Government Code § 53055.2. We will provide the City with written confirmation when that task is completed. If you have any questions in the meantime, please feel free to contact Del Heintz on 714/549-7709. Regards, ~.~__~. ry ' ~--~.~. viceI~esident, Franchising and Local Government Affairs Cc: Del Heintz, AT&T Broadband Lois E. Jeffrey, City Attorney, City of Tustin Tim D. Serlet, Director of Public Works, City of Tustin AT&T- ,,.,S,~ ! Un__!g _._' K~ DFPT. I ~ -- AT&T Broadband 200 Paularino Avenue Costa Mesa, CA 92626 Via .Facsimile and' Overnight Delivery August 13, 2002 Mr. William A. Huston City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 RE: Physical Plant Inspection - AT&T Broadband Dear Mr. Huston: We are writing.to summarize the information provided at the meeting between AT&T Broadband and the City of Tustin on August 5, 2002, and to follow up on matters discussed during that meeting. AT&T Investigation and Report.on Alleged Violations During the August 5th meeting .we explained that AT&T Broadband had investigated each of the 175 alleged violations cited in the report prepared by Kramer.Firm, Inc. ("Report")j At the meeting we also delivered a written summary explaining and 'categorizing AT&T Broadband's findings and the corrective action th~at was taken when called for. Our investigation revealed that approximately half of the drop deficiencies cited in the Report either: (a).did not exist; (Iv) were at addresses outside of AT&T Broadband's cable system; or (c) were at addresses w here the drop had .been disconnected because AT&T Broadband is not currently providing service at the address. AT&T Broadband has voluntarily repaired .or modified cable drops at the remaining addresses so that they comply with current electrical codes. However, I want to take care to point out that this work was not necessarily required as a matter of law or franchise obligations. The applicable electrical codes have complicated grand-fathering provisions that were not addressed in the Report. While a lv articular drop may not have met the requirements of the 2002 version of the National Electrical Code, that drop may have been installed years ago and be governed by a different standard. -M:. Williaw~ ~. Huston ~.age 2 Evaluation of Other Cable Drops At the August 5th meeting the City requested that AT&T propose a plan for evaluating cable drops in its system beyond those inspected by Kramer. Firm. To put o~r proposal in perspective, we would like to first.explain the dynamic nature of cable systems and some important aspects of AT&T Broadband's drop replacement.and maintenance procedures. A cable systean is dynamic, subject to both the forces of nature and actions of a variety of people who come into contact with the system. A cable system that is constantly subjected to these outside forces will regularly develop problems. Responsible operators like AT&T Broadband regularly correct these.problems, but it is entirely predictable that at any given time there will be a certain number of newly.developed problems that-have not been discovered and corrected. As a specific example of this, cable drops that were properly installed to begin with-can be disturbed not only by .weather, but by property owners, tenants, their contractors and other service providers in the course of performing work at the service locations. Drops, including grounding, can be damaged, modified, moved or removed without notice to the cable operator. As described below, AT&T Broadband has procedures in place that' result in regular.detection and correction of these problems over time. We believe that these ongoing procedures, rather than the one-time, system-wide inspection recommended in the Report, are the. most appropriate and cost-effective way to manage drops in a dynamic cable system. In the ordinary course of conducting business there are at least'four 'opportunities for AT&T Broadband-to evaluate and correct drop deficiencies. They are: I) routine service calls; 2) service upgrades or cross grades; 3) new service installation; and 4) signal leakage testing.. Our construction crews and technicians, who are extensively trained in · proper installation procedures, that include grounding, take advantage of each opportunity to ensure that the customer drops are properly maintained. For instance, during routine service calls, whether we have been asked to provide instruction on using the digital boxes, or to check signal quality, 'our installation technicians are instructed to examine the drop and to replace it if necessary. In addition tO routine service calls and service upgrades, we usually upgrade drops whenever we provide an advanced service to customers, such as cable modem service, telephony and digital video. We replace about 85% of the drops for subscribers who receive cable modem service or digital video services and 100% of the drops for subscribers who receive our digital telephone service. Another aspect of our routine plant maintenance program involves rigorous testing for signal leakage that is consistent with the FCC's regulations on Cumulative Signal Leakage Index ("CLI"). Signal leakage is the main cause of picture quality degradation. In order to locate problems before they become noticeable to the customer, we perform what is known as a CL~ fly-over, which includes testing the plant and cable drops with a MY. l/Vi11i~m A. HusJ~n Page 3 radio frequency meter to determine i/there is any signal leakage emanai/ng/rom the cable system drops or physic~ plant. Signal leakage problems can occur i/there are loose couplings or//t/ings, or i/there are damaged ~bles, among other reasons. We pedorm this type of testing on an ongoing basis throughout the year. In addition~ our I~hnical staff pedorms what is.rderred to as a "CLI drive-out" on all of our outside drops.and plant on a quarterly basis~ complete with documentation of RF leakage levels and repairs made ha accordance with FCC guidelines. Fi~aIly, each installation technichn is instructed .tv test the drop dur/ng a h°me visi~/or signal leakage. When signal leakage is deteci~, it is. corrected. Taken together, these procedmes mean that drops and the plant are continuously insp~ and repahed. In addition to these prOCedures, AT&T Broadband treats any potential safety problem as a top pri_ority. Whenever a safety issue is identified, either by AT&T Broadband t~,.hnicisns, customers or third parties, such as other utilities, AT&T Broadband field crews respond within. 24 hours. of receiving the notice. Other defici~es that come to our attention are generally cm-tec~d within five business days. We do not believe that AT&T Broadband's cable system in Tustin has more than the typical or expected amount of drop defia~ when compared to similar cable systems. Nor do we b~lieve that the signal quality delivered to our subscribers is negatively affected by the overall quality of our cable drops compared to other cable systems.. The Report does not suggest otherwise. In fact, the Report provides no comparative data by which the City can gauge the findings about AT&T Broadband's · Proposal AT&T Broadband's drops in Tustin fall into three categories: (a) drops for active customers receiving traditional analog video services; (b) drops for active-customers receiving digital video and/or cable modem service; and (c)drops for former customers that are not currently receiving service. For the first category - drops for active customerS receiving analog service - we believe the drop maintenance prOCedures described above provide' for regular, systematic detection and repair as wiring or grounding problems develop at the drops. At this time AT&T Broadband makes service or installations calls to approximately 4%' of its subscriber addresses in southern California each month. Each such call is an opportunity to inspect the drop and perform maintenance or replacement work as necessary. As explained above, subscriber drops in any aerial cable system will be in a continuous process of alteration, as a result of weather and actions of third parties, and therefore cable operators must engage in a continuous process of detection and repair. There is no other practical, effective way to manage drop maintenance in a dynamic cable system. At no time will the percentage of deficient drops be zero, but we believe AT&T Broadband's procedures result in an. overall drop quality that is consistent with industry norms. Mr. William A. Huston August 13, 2O02 Page 4 F°r the second category - drops for active customers receiving digital video and/or cable modem service - AT&T Broadband proposes to inspect 3% of such drops as a representative sample..At this time approximately 49% of our subscribers in Tustin receive one or both of these services. As mentioned above, we replace about 85% of the drops for subscribers who receive these services in order to assure the drops are ftmctioning at a level suffieient to meet their, higher requirements as compared to older analog video services. If, as we expect, our inspection reveals an overall drop quality that/s cons/stent with that for other similar, aerial cable systems, no.further inspection will be. required. If not we will meet and discuss the next steps with the City. As more and more Tustin residents subscribe to these advanced services over time, their drops will be upgraded in the ord/nary course of busin_~_s. For the third category - drops for former AT&T Broadband customers - we need .to discuss with you how to take into account the/act .that many of these residences are now served by direct broadcast satellite providers. Once a satellite provider has disconnected an AT&T Broadband drop and the associated grounding in order to install its own service, the satellite provider, not AT&T Broadband, ' assumes responsibility for grounding. Any plan to inspect and. repair drops in this category should exclude those addresses at which a satellite.provider has disconn~ or altereci the drop or grounding. In addition, we need. to discuss the likelihood of denial of access to drops. located on the property of non-customers. If the City.indicates agreement at our meeting °ri'August 19, 2002, with our proposal for inspect/ng drops in the second category descn~ above,' we estimate that the inspection can be completed and a report prepared by September 16, 2002. I want to emphasize that the 'City's evaluation of the inspection results proVided by AT&T Broadband must be based on a comparison to other similar cable systems - not to an Unachievable goal of perfection. No cable.system will ever be entirely free of drop def/ca'endes. Given that there are many f2ctors that contribute to overall operational effidency and that there are many intervening causes for drop deficiencies that come upas a matter of course, every day, the best that can be done is to implement procedures that identify and correct problems as they arise. We look forward to meeting.with you and other representatives of the City at 10:30 a.m. on August 19, 2002, to discuss this proposal and any other remaining issues arising out of the physical plant inspection. / Directnr,.Franchidng and Local Government Affairs Tim D. Serlet, Director of Public Works, City of Tustin Perry Parks, AT&T Broadband' AT&T AT&T Broadband 550 N. Continental Boulevard Suke 250 El Segundo, CA 90245 September 30, 2002 Mr. Joe Meyers Manager of Administrative Services City of Tustin 300 Centennial Way Tustin, CA 92780 RE: AT&T Broadband - Physical Plant Inspection Dear Mr. Meyers: I am writing as a follow up to a meeting between the City of Tustin and AT&T Broadband on September 26, 2002, concerning the review of AT&T Broadband's cable system conducted by the City's consultant. We were happy to hear that the consultant had very favorable findings in two of the three categories of his review. Specifically, he indicated that AT&T Broadband's compliance with the Federal Communication Commission's (FCC's) technical standards was "very good". His findings regarding our bi-annual "Proof of Performance" testing conducting in accordance with FCC requirements were also good, with only a few minor issues to be noted in his report to the City. The third category of review was a physical plant inspection. The City's consultant indicated that his findings were not unusual compared to other cable systems. Significantly, there was no suggestion that the signal quality delivered to AT&T Broadband's subscribers in Tustin is negatively affected by the quality of the physical plant. Nonetheless, the consultant felt that certain improvements should be made, specifically to subscriber drops. As requested during the meeting, this letter outlines AT&T Broadband's intentions concerning inspection and maintenance of subscriber drops in the City of Tustin. Inspection of Subscriber Drqps AT&T Broadband will inspect the subscriber drops currently installed in its cable system in the City of Tustin and will, where necessary, perform work to bring the drops up to current code standards. Barring unforeseen events, the inspection and the work necessary to upgrade drops to current code standards will be completed by December 31, 2002. ~::~:){;~> Recycled Paper $EP-30-2002 18: 1,4 Mr. Joe Meyers September 30, 2002 Page 2 After that date, the City of Tustin may, at its option, perform a follow up inspection to determine compliance with applicable standards, with a compliance level of 90% indicating substantial compliance. To be meaningful, such inspection should include a random sample of cable drops throughout the franchise area with a sample size sufficient to produce a margin of error of three percent. Cable drops that have been altered by third parties (e.g., homeowners, their contractors, utilities, direct broadcast satellite providers) or natural forces (e.g., interference by animals or weather) should be excluded from the sample, as should drops at locations where AT&T Broadband has been denied access. After the City's inspection is complete, AT&T Broadband will work with the City to identify these situations. On_qoina Maintenance and Replacement of Cable Drops In addition to this inspection, AT&T Broadband will continue to maintain and upgrade its cable drops on an ongoing basis in the ordinary course of conducting business. Our installation technicians are instructed to examine cable drops and replace them if necessar]/during routine service calls, regardless of the initial purpose of the call. It is AT&T Broadband's policy to bring drops into compliance with current code Whenever work is performed at the drop location. Each installation technician is also instructed to test the drop during a home visit for signal leakage. When signal leakage is detected at the drop, it is corrected. Finally, we usually upgrade drops when installing an advanced service, such as cable modem service, telephony or digital video. We replace about 85% of the drops for subscribers who receive cable modem service or digital video service and 100% of the drops for subscribers who receive our digital telephone service. The combined effect of these procedures is continuous inspection and maintenance of subscriber drops in the cable system. Purpose of Current Inspection - Proceed to Informal Renewal of Cable Franchise AT&T Broadband has voluntarily undertaken inspection of its cable drops in an effort to encourage the City of Tustin to promptly proceed with informal negotiations for renewal of the cable franchise, so that AT&T Broadband need not proceed with the formal renewal process set forth in the Cable Act at this time. Although we do not believe that further discussions with staff on the following points would advance our effort to eXpeditiously renew the cable franchise on an informal basis, we must point out for the record that the methods used for the physical inspection of AT&T Broadband's cable plant have been criticized, in addition, the report entitled "Physical Plant Inspection: AT&T Broadband Cable, March 2002" suffers from flawed premises and the omission of critical information, making its conclusions inaccurate and misleading, AT&T Broadband does not believe that the subscriber drop inspection it is currently conducting is required by the franchise or otherwise, or that the City has demonstrated non-compliance with .franchise obligations or applicable safety codes. Nonetheless, in the spirit of accommodation, AT&T Broadband is inspecting its subscriber drops. In that same spirit, AT&T Broadband will make its representatives available for biweekly (every two weeks) negotiating sessions with the City' and its cable consultants, commencing immediately. SEP-30-21~2 18:14 310 64? 3036 P. 03 Mr. Joe Meyers September 30, 2002 Page 3 We believe this letter addresses the City's concerns as expressed to us during the meeting on SePtember 26, 2002, and we look forward to the next steps in the process. / Regards, / . .~ Del'Heil~,,7. J Director, Local Government Affairs Cc: Lois Jeffrey, Esq. Mr. JOnathon Kramer SEP-30-2002 [@:[4 310 64? 3035 EXHIBIT H LA TIMES AND NY TIMES ARTICLES End to'TV Set-Tops .ClaSh SOught Top ..executives from the con- sumer electronics and cable televi- sion industries are privately trying to strike a deal to end their long, bitter battle over set-top boxes. Set manufacturers have sought for more than a decade to make TVs that could plug into any cable company's network without need for a set-top box, just as telephones and answering machines can plug .~tirectly into any phone, company's ::i~e~ But 'ever since cable opera- >~ introduced digital cable serv- ice in the late 1990s, no sets have been truly 'cable ready'--not even the latest digital TVs. The dispute is complex, 'with the -two sides battling to control on- screen program guides and other potentially lucrative services. Also at stake are consumers' ability to record certain shows and to watch premium high-definition television programs on older ~ silts. Pressure from Congress and regulators has improved prospects THuRsDAY, sEPTEMBER 19, 2002 of the negotiations, saying they had agreed to remain mum until the talks concluded. 'There are a number of complex technical and business .issues on the table in discussions that in- volve multiple companies in the ca-' ble and conSUmer electronics in- dustries,' said Marc . Osgoode Smith, a spokesman for the Na- tional Cabl~ and Telecommtmica- tions Assn. The e~change of views between industries has been con- structive but because these private discussions are ongoing, we prefer' not to comment further.~ some of the devices that consumer- electronics companies are eager to sen. For example,' most set-top boxes disable a TV~ set's 'picture- in-picture' feature, and many digi- tal set-tops have trouble working with personal video, recorders. To solve the compatibility prob- lems once and for all, set manufac- turers need to add tw6 things to their TVs: the circuitry required to tune in digital cable channels, and a plug-in security module that can unlock premium channels. Before they do so, however, manufac- CABLE ' ' TopB · . . · Dispute Over Set- oxes Is Closer Continued from C1 ' ~. About two-thirds of all U.S. turers w~ant the cable operators to HDTV si' aJs.'~i:*';;~~i.m!b:'.-, pl'- f..or a'deal: ..An~d Wednesday, House homes nave cable TV, and about drop some of the conditions their racy ~n....;.:~~..___. i~ner~7, .aha., ~ommerce. Chairman. , ~ of ali came customers have research-and-development arm.. Some' man~': ' ":~'"'~~.~.. '~::::~' the ,W.J. Billy Ta.,u~n.(R,.La,,)c~r,~- set-top_ boxes. That percentage Cable Laboratories, hasp]aced on cable o tors:- ~ ....... ho 1 . .. . . .... ,pera .::~. :..~ ..... ~.., me a~ed .a .dra~, bill tha~, w,o?? ,en??!e rises dramatically m commumties the sec-unt7 module, recor ' , for '~ ...... , ...."~ ers TVse~s~o.o?er. simpiedi,~c~ble w__here cable operators have pushed Top executives from the cable rely Oc~nagthe~-~-ant~ serviceswimotn a set-top ~ox. di 'tal cable service a essivel - · - ?* ..... ~,~' · ........ ~ ..... ;, gl,~ ,, , , ggr_ y, .~.d consurner-electromcs indus- network,based~~ei;vi~es ise~t~o~_s.,_o_~:.me ~,-, ha. ve~mf _SUCh as ~.asa..aena, where Charter tries have h. eld three meetings .this that the.cable ,,~ 0 tO. s~.?:a co~m~romlse D.y ?c~.. Co~m.?mcations Inc. offers HBO summer, with 'a fourth scheduled duc/ng "' "~~~/ ~u, or ~um the problem over ~o ~ea- . ana'orner remium channels only for this mon ' ~anwhilo ~]-~ ~,~"-- -~z~~3'~,, ,~ " eral re--" ......... lye ............ p~x .... _ .... th- M.e---;-.--~, ~.~.,=- ~,~mS ~a~~'.:~? ,., .~.ma~or~,.~ ~oi,~ e~; Url~l...c~.on. ti) ~.gl.tal C.aDle SUDS. Ch .~:.~rs.. Labs officials continue to negotiate what the cable ~~...could do,' DOm..noes connrme~, me ta~s out set-top ~oxes not omy cost con- privately_ with individual set manu- ......... C.~hl~_~an ~~,~ declined to comment on the status sumers an additional $3 to $6per facturers, _ _tryi~ to satisfy__ thetr' nation' 's_ __._url..argest'-~perator, month, but they also' interfere with concerns over the security module, recently blocked .digital 'copying of Ai:cording to sources close to all programs on i~.)digital-cable the,manufacturers, one 'of their charmels~a restri~"the corn- main complaints is that .the cable pany blamed on ~~:bug. operators want to gi~e Hollywood Manufacturers ~t to build. studios and other programmers too digital-cable c~~ their ~ut ~~idvanced that C~_~,requires, support ::i~'~~n-de- th~~-[to provide el~-- much power to block digital copy- lng and downgrade HDTV signals through the most .common connec- tors. Cable executiVes say they sim- ply want the flexfoility to offer Hollywood.. the same protection it gets from satellite operators. And Hollywood studios 'say they need the option to downgrade some sets without features that such as mand. And their own .,.,: program guides, a prime Pi~on-screen real estate_ Cable' ~::.'t~ see the pro m as." i und pad for fee-based ~, ' ];,.:~... _ n!Measum ~Neither. m~ure· .ts~ e~pected ~ass ~fore ~e Novem~r elections, but. ~e debate ~at ~o1~ this .~k'She~gs is view~ as a mark- .... ~ er for legislation to come up in the i~ ~ · w, :~.~, . / · : ~ext term' of Congress, ii~ ~::iio,;fni.'~i~l/~ :, . :T~ Ta,,,in propo~ wo-,d fore ';i!~" .~'w~ ~W,~,~ ~ ~ ~ ~ .: ~ ~: . broadc~ters to stop send~g ~nven~ -?~.- ./~' '"./ .* : ~-'.. ~' f ~on~ ~og~.tele~sion s~s· by ' *"*~ ~' 3 ,~ : ~ _ -:~ ~.' 1, 2~6i ~d its dead~e, co~d ~.~ -: Dy AMY ~RMON ~: ~t'~ ~tend~ under cur~nt law ' ~*¥, ' . - 'd · ~a~ ~ .' ~ ,~ ~ . .' / ':~ ~V stations may .con~Ue us~S ~r- '~:~ ~e House Ener~ ~dC5~ .... ,~ ~aves earmarked for ~og sl~s '~ ommittee- will hold h~s 't~av.J, ~"" .~ti185 ~rc~t of households ~ ~eir ' ':~ . ~ a'bfll ~tend~ to ~ur'~e~e~elO~' ~' ~./, ~arket have digital TV sets.. ':)~ ,~t of :~git~ tel~isi0n ~lt' Wo~.']'~'~- ~ But.~e tr~iti°n:h~.b~n.slow. :"~ "render most cU~ent tele~isi~ ..... [ ~r..9nly a~ut ~r~ mfllion d~ital sets ":~' ~lete.'bY 2007'~d* r~uire ~'~' ~' ~ ~ which c~ently c" ·.cost eou- ~'"; ~ :~'~mm~tcatio~ C-' ...... '~ ~ 'J: ~: ~ds of dollars -- have ~n .Sold, :~": ' ~'P~' ~ov-rOt~C-- - ~ ~- ...... .. ~d fewer ~ on~rd of..bro~- · '::{~i ' ~si~'~.prev~t Co~umer~ ~"~t~,:' :' :' ~st.' 'W stations are :.tr~smi~mg ' ;; : /' ~;' Re-~e~taflve ',"~,2C?~Y~',,Z'~ I/:' :: ~ey say ~ drive up.~e p~ce of ~e '~}~' ' ~a;:~rat o} n~~.-~;~ii. ['; ': iV~r~etelevisi°n .s~t bY more ~ ~i ':"' '::'~:Oula~;~ 'Protect ente~at ~'a; ti' '.' :". ~50, '/.'-'..' ~...'.. ':..'.. ;.~ "'. ~s ~t ~ [~hnnlnOto~l' ~0-~~' ~ ' ':'~' Became, ~a- debate iS l~ely to ~i ' :' : ..... ~ ~ n ~e pmwsion ~ ~e Tau- :,. ~ate~ over,~e,lntemet : Ii. ~ : ,. · . . ....... ~; a,Di tt~:d' '-' ....... ;: . . ~I :~ pro,sm ma~ .woulo reqm~ me .?: i'$~.~e I~t~vl~'~OFO~c~,~ .to sup~': coPy'P~tection , .:~ . y,,'w, tucr,aaopuon , · 'fi~ ~s~ to prev~t TV ~ewe~ · ,: d~°uld ~,~ ~., ....... -~ ... . · . ~o , ~lstributmg · maten~ over .~, ~ ~ .mu ~uer~ ~elecom, : ' * · In ' ~, ' ~tCa~On, ~-~---~-"--~ ~ ~ ~e temet,, the tec~olo~ could ~'~~aa~.~L~;~;ll~..~;:~ov. ~so ~.us~ ~ ; '~.~oH~f ~;_~'°z~ mm~ns "~om r~r~ shoWs or' wat~g · ~' . ~ s ~v :s~c~mm Ior :~em Whe~ ~ when ~ey ch~se. ",:~er,,~s as '~n ~ br~dc~ters '.~ :~e trad~ff ~n-~waning ~e:.~e switch to, d~it~' si~s ·; "{ntemet piracy` ~d' tmp~g~ on ~e' ~: ~ But'cons~er grou~'~ntend ~at .'. ~ay consumem ~teract ~ tech- pm~s~-, s~ .a '.troublesOme ~.. ~lO~ is ~so at issue ~ ~e Berm~ ':..bill .Under ~e pm~s~ ~t '?i ~ers Would' ~'fr~ to u~ ~y ~nolo~: to ~s~le, bilk'or im- ,.~. ~',~e~.works from .~ pirat~ :.:, m a fll~sh~g networ~ provided ~..~at ~ey ~d not damage ~ers' corn, - .~ or blo~ O~er fil~. . .'~ ,Wffi cOnsume~ have ~Y reas~- ~ ' : ~le ~cou~e ff ~ey.~e ~e target, of ~...~ ~ attar?, ~d :~ Da~d- ~n. ~s~iate director, of ~e ~nter '~ m~umer .. ~ . adv~acy ~oup. ~llOf ~ese may ~ ve~ well-mten- ~on~ b~; bu~ ~ey . ~- im~ct ~ ~ ~mers watch ~ ~le~i~' ~d..~e' phones. ~d ~m, : pute~;:We have W f~d a way ~ ~ve .:~.. a'~e ~at h~ not t~ place so ._ ' ~f~-on Capitol Hill on what ~ose ' .implica~ons ~e.'f solution. 'them- ~.t solution,;'can you: find a better- And by the way, can ou find it - Y . nY" . .:- .' . ·. ,' .;,?.'