MINUTES OF A PUBLIC HEARING ON CABLE TELEVISION SERVICE HELD BY THE

MAYOR AND COUNCIL OF THE TOWN OF CHAPEL HILL, NORTH CAROLINA,

MONDAY, FEBRUARY 3, 1992 AT 7:30 P.M.

Mayor Broun called the proceedings to order. Council Members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Mark Chilton, Joe Herzenberg, Alan Rimer, Arthur S. Werner and Roosevelt Wilkerson, Jr. Also in attendance were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Assistant to the Manager Greg Feller and Town Attorney Ralph Karpinos.

Mayor Broun requested that persons wishing to speak on cable television concerns sign up with the Town Clerk.

Town Manager Horton noted that the Cable Television Advisory Committee had already started its work. He noted that there was considerable interest in the community about cable service. Mr. Horton said the main purpose of this evening's hearing was to receive public comment on cable television service. He requested that letters a number of letters received from citizens regarding cable television service be entered into the record of the hearing. Mr. Horton said that copies of the letters would be available for review in the Town Clerk's Office or at the Public Library. Mayor Broun concurred with the request to enter the letters into the record of the hearing.

Assistant to the Manager Greg Feller said a needs assessment of the cable service in the community might take a year or longer to complete. Mr. Feller said the staff was recommending that comments from this evening's hearing be referred to the Cable Television Advisory Committee, Town Attorney and Town Manager for development of follow-up recommendations. Mr. Feller noted that he had requested a copy of United States Senate Bill 12, concerning local regulation of cable television service providers. He said that Prime Cable Partners was currently negotiating the sale of Carolina Cable to American Television Corporation. Mr. Feller stated that the deadline for closure of the sale was April 30, 1992. He noted that sale of the system could not be unreasonably refused. Mr. Feller said that primary concerns of local cable customers included the level of customer service standards, compatibility of televisions and videocassette recorders, upgrades in the basic cable system and coordination with developers and utility providers.

Wilbur Epstein said he was very angry that WWOR had been replaced by WGN on the Carolina Cable system. He inquired whether the change in programming was based on personal preferences of local cable television executives or a poll of existing cable customers. He inquired who had been polled by the cable company, where they lived, who had paid to do the survey and when it had taken place. Mr. Epstein said American Television Corporation had indicated that they were responsive to subscriber concerns. He suggested that another poll concerning superstations be conducted in the near future. Mr. Epstein noted the importance of subscriber satisfaction in determining programming on local cable television channels.

Irma Epstein said that local cable television management appeared to prefer WGN over WWOR. She read excerpts from several recent newspaper articles concerning local cable programming. Ms. Epstein said that factual information indicated that WWOR had better quality programming than WGN.

Edward Cohen said that American Television Corporation could show its community concern by eliminating some of the negatives regarding the provision of local cable television service. He inquired which subscribers had responded to the poll concerning the choice of a superstation.

Fred Abernathy said he worked in a field related to cable television. He noted that many of his customers experienced compatibility problems between cable television converter boxes and their televisions and videocassette recorders. Mr. Abernathy said one of the greatest problems experienced by cable subscribers was the inability to record one program while watching another. He also expressed concern about the cable company's slow response to some repair requests. Mr. Abernathy said the use of unscrambling cable convertor boxes would serve the needs of customers.

Miriam Smith said that she had purchased a cable-ready television several years ago, but found that the cable conversion box had made the remote control unit for her television useless. Ms. Smith said that she and several of her neighbors felt that having to rent more than one converter box was an unnecessary expense. Noting that other cable systems offered better service, Ms. Smith requested that the Council act to provide improved cable programming and service.

Nancy Tripoli said she was willing to pay a fair price for good quality cable television service. She noted the importance of allowing a cable provider to make a legitimate return for services received. She said that cable subscribers should not have to pay for mistakes of the cable company. Ms. Tripoli inquired where the Town rated in terms of percentiles concerning cable television rates. She also inquired why the current cable company was being sold and why the company had chosen the type of converter box currently in use. Ms. Tripoli emphasized the need for a well-managed company that charged reasonable prices.

Joe Elkins expressed concern about Carolina Cable's lack of responsiveness. Mr. Elkins said he currently received very poor reception on his two television sets despite having cable television service.

Karl Owen expressed concern that the existing cable system did not permit one to record one program while watching another. Mr. Owen said he did not object to paying a fair price to receive better service.

Eleanor Roberts said she did not subscribe to cable, but wanted to. Ms. Roberts stated that she had experienced a great deal of difficulty in receiving a refund from an introductory offer by the cable television company.

Robin Wills, a Town resident for six years, said there had been little opportunity for public input on cable television service. Ms. Wills said she felt slighted by the local cable company.

Johnny Sutherland posed five rhetorical questions, as follows: (1) Had the cable company been courteous? He said no, noting problems with double billing and receiving service; (2) Was the cable company compromising? He said no, saying that personnel did not arrive as agreed to provide service; (3) Did the company employ good listeners; (4) Was the company accountable and (5) did the company eliminate frustration? He answered no to each of these three questions.

Brian Mitchell said he was speaking on behalf of the youth of the Town who watch a lot of cable television. Mr. Mitchell said that the cost of cable television should not be inflated because of monopoly situations.

Jim Eder said he had been dissatisfied with cable television service provided at his residence in Vermont and was also dissatisfied with Carolina Cable's service.

Fred Abernathy said Carolina Cable's upgraded equipment made it quite difficult for unscrupulous persons to receive free cable service. Mr. Abernathy said providing a cable unscrambling box was one of the keys to improving customer satisfaction.

Wilbur Epstein said that ratings for WWOR were higher than those for WGN. Mr. Epstein stated that he did not appreciate paying for duplicative programming on two cable channels. Mr. Epstein said he had written a letter to Carolina Cable officials on this matter but had not received a response to date.

Council Member Andresen noted that the cable franchise agreement negotiated with Village Cable in 1979 had included a condition whereby citizens could pay a one-time fee to receive public and local government access without having to subscribe to regular cable television. Council Member Andresen requested information on whether original cabling for the cable television system had been laid correctly. She also requested information on the scope of the Council's discretion in determining cable programming and related matters.

Council Member Herzenberg noted that the United States Senate had passed Senate Bill 12 concerning cable regulation by a vote of 73-18. He urged concerned citizens to contact their United States Congressional Representatives to urge their support of local cable regulation.

Referring to a letter from Eva Metzger, Council Member Rimer requested that the staff provide additional information concerning public access programming facilities and programming. He also suggested that the cable company might want to consider a converter box with greater remote control flexibility.

Council Member Capowski requested a clarification of the Council's control in determining cable television rates. Mr. Feller said that Federal deregulation had superseded local government control over cable television rates. He noted that the Town Code contained appropriate language in the event that such authority were returned to local governments. Council Member Capowski inquired whether there was any way to encourage greater competition in the provision of cable television service. He suggested that the cable company might want to investigate providing both WGN and WWOR to its subscribers. Noting that changes in technology occurred rapidly, Council Member Capowski suggested that cable television technology be reviewed more frequently than every fifteen years, the length of standard cable franchise agreements.

Council Member Wilkerson noted that he had experienced similar difficulties concerning cable service as those expressed by speakers earlier in the evening. He noted that the pending sale of Carolina Cable presented the opportunity to negotiate a fair exchange of good service and quality programming. Council Member Wilkerson said Town residents deserved to receive the best possible cable service. He expressed hope that American Television Company would be willing to make compromises in bargaining with the Town. Council Member Wilkerson said he looked forward to working with the Cable Television Advisory Committee. He also noted that ingenious persons found it quite easy to tamper with cable converter boxes.

Council Member Chilton requested information from the staff concerning the provision of cable television service to the University campus. Mr. Feller said University and cable officials would need to work out details of such an arrangement. He noted that Norm Vogel, a member of the Cable Television Advisory Committee, could provide additional details on this matter.

Council Member Werner thanked Council Member Wilkerson for his willingness to serve on the Cable Television Advisory Committee. He inquired about the feasibility of permitting cable companies in adjoining communities to provide service to the Town. Mr. Feller said franchises were not exclusive. He noted that most cable franchises were interested in providing service to a defined area. Council Member Werner asked whether this approach could be further explored. Mr. Horton said that telephone cable companies would likely become involved with the provision of television cable and related services in the next decade, resulting in a greater degree of pricing and service competition.

Council Member Brown thanked Council Member Wilkerson and the other members of the Cable Television Advisory Committee for their willingness to serve the community. She noted that a number of important questions concerning cable television service had been raised this evening. Council Member Andresen emphasized the importance of using public access capabilities for educational programming. She inquired whether there would be an opportunity to alter the franchise agreement when the sale of the company was made. Mr. Horton said the Town had very little bargaining room at the time of the transfer. Town Attorney Karpinos added that there would be an opportunity to negotiate conditions when considering the new franchise agreement. Council Member Rimer inquired about the reputation of American Television Corporation. Mr. Feller said the Town hoped that the firm would honor its commitments to customer service, especially communications. Council Member Rimer inquired about the firm's complaint rate. Mr. Feller said he did not have this information. He added that the Town expected that the company's contract would be honored.

Council Member Herzenberg noted that the Town's current cable franchise had been awarded to a local company in 1979, partially on the basis of accountability. He noted that the quality of the system early in the franchise agreement was quite high. Noting that the matter of the franchise was a dynamic, rather than static matter, Council Member Herzenberg urged Town residents to contact United States Congressmen David Price and Tim Valentine to express their support for additional cable regulatory authority at the local level.

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER CAPOWSKI, TO REFER THE MATTER TO THE CABLE TELEVISION ADVISORY COMMITTEE, TOWN MANAGER AND TOWN ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

The hearing concluded at 8:51 p.m.