MINUTES OF A PUBLIC HEARING HELD BY THE MAYOR AND COUNCIL OF THE

TOWN OF CHAPEL HILL, NORTH CAROLINA

MONDAY, OCTOBER 2, 1995, 7:00 P.M.

Mayor Broun called the hearing to order. Council Members in attendance were Joyce Brown, Joe Capowski, Mark Chilton, Pat Evans, Lee Pavao, Barbara Powell, Jim Protzman and Rosemary Waldorf. 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.

Mr. Horton noted that the Council had adopted a resolution at its September 11th meeting scheduling this evening's work session. He noted that extensive notice of the hearing had been provided to citizens through various outlets, including the local media. Mr. Horton noted that representatives of Cablevision of Raleigh-Durham-Chapel Hill had requested the opportunity to make brief remarks this evening.

Assistant to the Manager Greg Feller stated that Cablevision was proposing a fifty-six channel system, forty-one of which would be available without the need for a converter box. He noted that the Federal Communications Commission was expected to issue an ruling during November concerning the use of converter boxes. Mr. Feller stated that Cablevision was proposing that cable subscribers be billed fifty cents per month for public access programming.

Randall Fraser, President of Cablevision of Raleigh-Durham-Chapel Hill, stated that his firm was willing to move forward with an upgrade of the existing cable system and install a standby power system. He also said that the cable system would be locally managed. Mr. Fraser noted that the proposed system would take approximately twenty-four months to complete. He stated that the negotiation process with the Town had resulted in a balanced resolution on all issues.

Cable Television Advisory Committee Chairperson Tim Stephens reported that the outstanding unresolved points including public access matters, the length of the proposed franchise term and concerns about converter boxes.

Council Member Capowski, Council Liaison to the Cable Television Advisory Committee, thanked the Committee and Chair Tim Stephens for its work. Council Member Capowski said he believed that the

the Town's cable franchise negotiating team had done an excellent job. Noting that some citizens still had concerns about public access programming, Council Member Capowski requested that citizens citing examples concerning public access in other communities provide concrete details about these arrangements. He stated that the 11,400 cable television subscribers within Town limits, producing annual revenues of $4 million.

Citizen Comments

Kim Hoke, Assistant to the Superintendent of Chapel Hill-Carrboro City Schools, thanked the Council for its support of the middle school's after school programs and the use of the Council Chamber for monthly School Board meetings. She stated that the School System was very interested in attaining greater access to cable programming opportunities in existing and future school facilities. Ms. Hoke stated that the School System looked forward to having a greater role in cable programming.

Robert Gwyn, Chair of the Orange County Citizens Cable Advisory Committee, said public access television brought people together and encouraged community. He urged the Council not to be diffident about Time-Warner providing up to $350,000 for new equipment for public access programming facilities, in light of the significant levels of compensation paid to Time-Warner's executives and associates.

Jim Sander, producer of a local environmental issues program on Cablevision of Chapel Hill, said cable television could serve as a very good tool for educating the public. Briefly providing an overview of planned upcoming shows on "The Earth Station", Mr. Sander requested the Council's support of more dedicated funding for public access programming.

Mary Anne Gross, President of the Chapel Hill-Carrboro Chapter of the League of Women Voters, requested that the Town go back to the negotiating table with Time-Warner concerning the cable television franchise agreement. Ms. Gross noted that the League of Women Voters had recently telecast many public forums on cable television. Ms. Gross also said she had several ideas for possible future shows on public access channels. She also stated that although the community where she had formerly resided, Oak Ridge, Tennessee, was smaller than the Town, Oak Ridge enjoyed better public access programming.

Eva Metzger, representing Citizens for Community Access Television, noted that Congress had passed legislation fifteen years ago requiring cable companies to reserve channels for public access programming. Ms. Metzger said it was very important not to deny citizens access to public access television. She requested that the Town return to the cable negotiating table, following the guidelines set forth by the Cable Television Advisory Committee concerning public access facilities of $350,000 in start-up costs and $120,000 for annual operating costs. Ms. Metzger also requested that Time-Warner be good citizens in helping out with public access television opportunities.

Stating that Univision was available in Carrboro and Durham, Jane Stein said she had been requesting for four years that Chapel Hill Cablevision add this programming service to its system. Ms. Stein said she hoped that the Council would pursue this possibility.

Sharon Mujica expressed her concurrence with Ms. Stein's remarks. Ms. Mujica stated that some of Univision's programming would serve as a good learning tool for Spanish language students. She also stated that persons of Hispanic origin would appreciate the opportunity to have Univision on the local cable system.

Bob Stipe said at least 6,000 Town citizens who contributed funds to WCPE Radio were very interested in Cablevision maintaining access to WCPE Radio under the terms of the proposed franchise agreement. He requested the Council's assistance in moving forward toward this objective.

Joe Mitchell expressed concern that under the terms of the proposed franchise agreement, citizens would have to subscribe to a third level of service in order to receive some cable channels, such as the History Channel. He suggested that the Town consider entering into a pact with other local communities in order to maintain a position of strength in negotiations with the cable television company.

David Zipper noted that the Chapel Hill High School Student Council had recently adopted a resolution supporting public access television equipment options for a variety of programs. Mr. Zipper urged the Council to stand firm on the matter of providing public access program opportunities.

Marcia Decker, a member of the Cable Television Advisory Committee, expressed concern that there were no real funding provisions for public access equipment or resources in the proposed franchise agreement. She urged the Council to commit to real financial support of public access television.

Jeff Surles urged the Council to make public access viable within the Town's new cable television franchise agreement. He expressed hope that a descriptive video service could be made available for visually-challenged persons.

Annree Mitchell, an area resident since the 1960's and long-time producer of cable television programs, said that Cablevision's current public access facilities were sorely lacking. Ms. Mitchell urged the Council to support a franchise agreement including strong provisions for public access facilities.

K. G. Rajendran said he had recently visited Cablevision of Chapel Hill's public access studios and had been embarrassed the lack of equipment available at this facility. Mr. Rajendran said he favored having expanded public access television facilities and expanded programming opportunities, possibly including a mobile television studio.

Bill Elstran said the community where he had been raised in the mid-1950's had been far-sighted enough to provide good television facilities for students taking speech and debate classes. Mr. Elstran also said that public access television was a good resource for reaching out to different groups of people with a variety of interests.

David Thaden, principal of East Chapel Hill High School, said Cablevision's public access studio still had the same video production equipment as twelve years ago. Mr. Thaden also said he was dismayed that the proposed new franchise agreement did not contemplate any new studio space or equipment for public access programming. He urged the Council to develop an agreement which would provide for the production of high-quality video productions.

Donald Nelson said only four out of fifty-six proposed channels were dedicated to public access programming. Mr. Nelson stated that it would be appropriate to provide funding of at least $300,000 for public access program facilities. He urged the Council to give serious consideration to funding of public access facilities.

Bob Joesting, a member of the Cable Television Advisory Committee, said start-up and operating funding were needed for public access television. He requested that the Council take the necessary steps to provide this funding.

Fred Good stated that the Council should ask Time-Warner for additional funding for public access equipment and related expenses. He said it would be unfair to provide public access channels without also providing video production facilities and equipment.

Don Yonavjak, a Town resident for over nine years and community television producer, said citizen and voter access to information was very important. Mr. Yonavjak said the entire community desired the opportunity to have access to good public access programming facilities.

Mike Millard said the facilities, equipment, funding and entity to run public access programming were missing from the proposed cable television franchise agreement. Mr. Millard strongly urged the Council to either renegotiate the public access element of the agreement or scrap the entire proposed agreement and start the process again.

Jane Smith, a member of Citizens for Access Television, strongly urged the Council to renegotiate the public access element of the proposed cable television franchise agreement. Ms. Smith stated that citizens should not have to pay for the provision of public access television facilities. Ms. Smith requested that the Council give strong consideration to renegotiating the agreement.

Manju Rajendran said public access television touched almost everyone's life. She also stated that public access television was an essential medium for allowing citizens to express their views and interests.

Marty Rosenbluth expressed concern about the increasing number of multimedia monopolies. He stated that one antidote to this problem was public access programming. Noting that he was appalled by the state and level of video production equipment at Chapel Hill Cablevision, Mr. Rosenbluth urged the Council to renegotiate this portion of the proposed franchise agreement.

Scott Barber, Secretary of the North Carolina Alliance for Democracy, said the free flow of information was very important. Mr. Barber stated that not many people at this evening's hearing felt that the proposed level of support for public access was adequate. He also said that the cable company in another community with 11,500 cable television subscribers had provided up front funding of $400,000 for equipment and a $1.32 per month per subscriber pass-through for funding public access programs.

David Kasper, Director of Operations for the Empowerment Project, said his organization's purpose was parallel to that of community access television. Mr. Kasper stated that public access programs should be coordinated by an independent, non-profit organization.

He also expressed his concurrence with Eva Metzger's and Bob Gwynn's concerns about adequate provision of public access facilities.

Robert Masto said it would be very desirable for Time-Warner to eliminate the need for a converter box, excepting premium channels. Mr. Masto also said it was ridiculous that cable subscribers were forced to pay $2.50 per month for rental of a converter box.

Vijari Rajendran said she had been a Town resident for approximately eleven years. Ms. Rajendran said she strongly favored having citizens in charge of public access programming on cable television, rather than having Cablevision or the Town handle this function.

Pat Mellon, President of Tricam of Raleigh, a group of community television producers, stated that his organization worked to preserve the First Amendment rights of Raleigh citizens. Mr. Mellon said he and his organization would support the formation of a public access channel in the Town.

Bart Wojdynski urged the Council to provide funding to support public access programming at Chapel Hill High School.

Brad Johnson, a retired Federal and State employee, said although Chapel Hill Cablevision had a very helpful and cooperative employee to assist with public access needs, the existing equipment was sorely lacking. Mr. Johnson said he personally believed that he had better video production equipment than Chapel Hill Cablevision.

Questions and Comments by the Mayor and Town Council Members

Council Member Brown inquired how the franchise agreement could be sent back for further negotiations. Mayor Broun said that another negotiation session could possibly be held prior to possible Council action on October 23rd. He added that the matter would need to come back for Council consideration by no later than November 13th in order to be handled by the present Council. Council Member Brown asked whether citizen comments made this evening could be addressed by October 23rd. Mr. Horton said he was unsure whether this could be accomplished comprehensively.

Council Member Pavao suggested the possibility that Time-Warner could make additional compromises this evening, avoiding the need for long, drawn-out negotiations. Cablevision representative Randy Fraser noted that only about twenty years ago, television basically had three or four choices for viewing, the major networks and the Public Broadcasting System. He stated that the issue before the Council was coming down to funding matters. Mr. Fraser stated that the Town would receive estimated revenues totalling $3.2 million over the next ten years. He stated that Cablevision was willing to discuss how some of these funds might be earmarked for public access purposes.

Mayor Broun said he was not presently prepared to get into negotiations concerning dollar amounts. Mayor Broun also said he thought that the Town should stay with the current negotiating team, with a report being made to the Council on October 23rd.

Council Member Brown inquired whether the Town's consulting attorney had been involved in the most recent negotiating session. Mr. Horton said the consulting attorney had been advised prior to and after the most recent session.

Council Member Brown said she was interested in having several persons interested in public access programming serve on an expanded cable negotiating team.

Council Member Chilton inquired whether Council Member Capowski had any comments on the proposed additions to the negotiating team. Council Member Capowski said some of the information presented this evening had been correct, while other information was incorrect. Council Member Protzman inquired whether Council Member Capowski felt that negotiating team lacked some knowledge or data which a new member of the negotiating team might provide.

Council Member Capowski said it appeared that the Council consensus was to go back to the negotiating table for at least one more session. Council Member Brown said it was important for the Council to have as much flexibility as possible. Mayor Broun noted that a second negotiating session could be held if necessary. Council Member Chilton suggested that the level of funding for public access be greater than proposed by the Cable Television Advisory Committee.

Council Member Brown requested that the negotiating session or sessions also address other citizens concerns including Univision, WCPE and converter boxes. Council Member Capowski said Cablevision was proposing that Univision service be made available as part of the proposed expanded channel line-up. He added that an examination of the distribution of reception of radio station needed to occur in the future. Council Member Capowski also said the Town did not have the legal authority to overrule the Federal Communications Commission (FCC) relative to cable converter boxes. Council Member Chilton asked whether there was any way to guarantee specific types of programming. Council Member Capowski said the Town was permitted to specific general types of programming.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER PAVAO, TO REFER THE MATTER TO THE TOWN MANAGER AND THE TOWN'S CABLE NEGOTIATIONS TEAM. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

The hearing concluded at 8:58 p.m.