HomeMy WebLinkAbout21 - Adelphia & Cox CableITEM 21
TO: Members of the Newport Beach City Council
FROM: Marilee Jackson, Public Information Officer
SUBJECT: Presentation by Cable Consultant Sue Buske and documentation of
public comments regarding both Adelphia and Cox cable TV companies
serving respective parts of the city
RECOMMENDED Discuss, hear and document public comments regarding cable TV
ACTIONS: services and requests for additional services as applicable to upcoming
franchise agreement renewals for Adelphia and Cox Communications.
BACKGROUND: Cable TV and Internet services in the city of Newport Beach are
somewhat unusual in that two separate areas of city jurisdiction are under
contract to different cable companies. Adelphia Communications (formerly
Comcast) serves most of the city located west of Jamboree Road to the Santa
Ana River Jetty and inland to Costa Mesa. Much of Corona del Mar is in
Adelphia's territory as well.
Cox Communications provides residents with services east of Jamboree Road
and inland of PCH /5th Avenue, including the newly annexed Newport Coast area
(See map Attachment A). The split service is a result of previously annexed parts
of the City such as Corona del Mar and more recently the Newport Coast areas
continuing their respective cable TV franchise agreements which were in place
prior to those annexations. Adelphia currently serves approximately 18,000 TV
subscribers; Cox has approximately 10,000 TV subscribers. These numbers do
not include the cable modem, high -speed Internet services.
The separation remains today because each cable company owns the
equipment and cabling in its respective areas. Adelphia has upgraded its
side of the city to provide fiber optics and high speed Internet service; it
owns the cabling in the ground, the transmission and reception
equipment located at 'head-end" facilities and provides its programming
according to its channel line -up. Likewise, Cox Communications also
provides fiber optic service, owns its own equipment and programs
according to its own channel line -up. This situation cannot change
unless or until one cable company is able to purchase one existing
system from the other or a third party purchases both. At this
time, neither system is for sale.
Both agreements (and the City's own ordinances) are non- exclusive.
This means that any company - Cox, Adelphia, AT&T, Comcast, Charter
or anyone else -- is free to enter into an agreement with the City to
provide cable TV and Internet services if they first provide the required
cabling, equipment and proof of performance and service.
C asca
Page 2
Because the City is served by two separate entities, there must be
negotiation for two separate contracts. However, the City specifies in
Newport Beach Municipal Code Sec. 5.44.190(A) "...all CATV systems
franchised to operate within the City shall be compatible and
interconnectable with one another to provide simultaneous cable casts
on the Community Channel."
On June 25, 2002 Adelphia and 200 of its subsidiaries filed a Chapter 11
Petition for Bankruptcy Reorganization. Although our cable needs
assessment process is continuing and Adelphia has indicated it will
continue its commitments, the impact of the bankruptcy remains
unknown at this point in time.
FRANCHISE
RENEWAL
PREPARATIONS: In May this year, cable consultant Sue Buske (hired by the City for the
purpose of conducting a comprehensive "Community Needs Assessment "),
conducted a series of community cable focus group workshops addressing
future cable service needs in Newport Beach. The weeklong meetings focused
on government agencies, education and schools, environmental organizations,
businesses and business organizations, arts, culture and heritage groups,
sports and recreation organizations and community and civic organizations.
(See Attachment B)
An extensive Community Needs & Interests Questionnaire was used to obtain
information as part of the Assessment to help identify changes that might be
made to meet future cable - related needs. (See Attachment C)
Additionally, during the period of April 14 -April 24, 2002 a statistically
valid telephone survey of 400 completed interviews was conducted by
Group W Communications, LLC, North Hampton, NH. Interviews were
conducted utilizing a random sample from active residential telephone
listings in both Adelphia and Cox subscriber areas. Cross tabulation
analysis was also conducted utilizing demographic information provided
by respondents. Analysis was also performed to determine significant
differences in responses of Adelphia and Cox subscribers.
The telephone survey is in draft form at this time. When it is finalized, it
can be made available to the public for review.
Tonight's Council meeting brings another opportunity for the community
to put its comments on the public record. A transcript of the meeting
will become a part of the record used to establish terms and conditions
for any and all upcoming franchise discussions with Adelphia and Cox,
or their subsidiaries should a sale occur. Following tonight's
presentation by Ms. Buske and subsequent public input, Ms. Buske will
provide a complete and thorough Report to the Council (anticipated to be
delivered no later than November 29, 2002). At about that time, Special
Counsel Bill Marticorena of Rutan and Tucker will enter negotiations with the
cable providers in an attempt to complete the Agreements with both cable
companies by March, 2003.
ATTACHMENTS: Attachment A -- Area coverage map
Attachment B -- May 2002's Focus Group Schedule
Attachment C -- Community Needs Questionnaire
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ATTACHMENT B
Are We Using Cable TV
To The Max?
Let's Make It
All That It CAN Be!
join Us For A Cable Needs
Focus Group And Give Us Your Thoughts On
Wbat You Want CommunhyProgramming
Monday, May 20th
Government Agencies
10:00 a.m. —noon
City Council Chambers
3300 Newport Boulevard
Monday, May 20th
Education/ Schools
3:30 p.m. — 5:30 p.m.
Newport Harbor High School
600 Irvine Avenue
Tuesday, May 21st
Environmental Organizations
3:00 p.m. - 5:00 p.m.
Newport Beach Fire Conf. Room
3300 Newport Boulevard
To Provide In Newport Beach
Wednesday, May 22nd
Businesses/ Business Organizations
10:00 a.m. — noon
NB Chamber of Commerce
1470 Jamboree Road
Wednesday, May 22nd
Arts, Culture & Heritage Groups
3:00 p.m. - 5:00 p.m.
Central Library Friends Meeting Rm
1000 Avocado Avenue
Wednesday, May 22nd
Sports & Recreation Organizations
7:00 p.m. - 9:00 p.m.
Central Library Friends Meeting Rm
1000 Avocado Avenue
Thursday, May 23rd
Community & Civic Organizations
7:00 P.M. - 9:00 P.M.
Oasis Senior Center Multi- Purpose Rm
800 Marguerite — Corona del Mar
For More Information CAM 949- 644 -3002
Or Visit NBTVNews /Events At
www. city. newport- beach. ca, us
ATTACHMENT C
These questions are intended to obtain information about community needs and interests related to
cable TV. The information gathered will be used to assess whether current local cable TV services
and resources are adequate and appropriate, and help to identify changes that might be made to
meet future cable - related community needs and interests in Newport Beach.
1. Do you currently subscribe to cable TV service in Newport Beach?
Yes _ No Iff "No," skip to Question
2. Please indicate the name of your cable TV company:
Cox Communications _ Adelphia
3. Do you think the cable TV company should offer more channels?
_ Yes —No _ Maybe
4. a. What types of programming do you think should be more readily available on the
cable company's channel line -up? (Check all that apply.)
Arts /Cultural _ Local news, activities, events, etc. News & Information
Children's _ Documentaries _ Sports
Classic Movies _ Educational _ Religious
Comedy _ Music _ Recent Movies
Other:
b. If you checked any of the above, would you be willing to pay extra to receive
additional channels devoted to those types of programming?
_ Yes _ No _ Maybe
5. Do you have a computer in your home?
_ Yes _ No 11f "No,"skip to Question 10 at the bottom of page
6. Is your home computer used to access the Internet?
_ Yes _ No Iff "No," skip to Question 10 at the bottom of page
7. Do you subscribe to the high -speed Internet connection service that is available through
the cable company?
_ Yes Ilf "Yes, "answer Question 7a on the next a
_ No lif "No, "answer Question 7b on the next a
- 1 -
V
7a. lif "Yes" to Question Please rate your high -speed Internet service:
_ Very Good _ Good _ Fair _ Poor _ Very Poor
7b. if "No" to Question Why don't you subscribe to the cable company's high -speed
Internet service?
_ Too expensive _ Used to subscribe, but unhappy with service
Didn't know about the service
_ Other (specify):
8. During the past week, how long was your home computer used to access the Internet?
Under 5 hours 5 - 15 hours 16 - 25 hours
Over 25 hours Don't know
9. Has a personal or business "Web site" been created with your home computer?
Yes No
10. Please indicate how important you think it is for you to receive the following special
services by using the cable system:
Not
Very Not Very Important
Important Important Important At All
a. Movies on demand
b. Interactive shopping
c. Interactive video games _
d. Video teleconferencing (2-way video)
e. If you indicated "Very Important" or "Important" regarding any of the above special services,
would you be willing to pay an additional fee to obtain them?
_ Yes _ No _ Maybe
I rm
11. Certain improved services could be received through your television or home computer by
using a high speed connection to the Internet provided by the cable system. Please indicate
how Important you think it is to receive the services described below through your N or
home computer.
a. Access to Library resources
(card catalog magazine
articles, encyclopedias, etc.)
b. Ability to vote, renew your
driver's license or obtain
government permits from
home
c. Ability to send and receive
e -mail and information to
and from teachers, school
administrators, and School
Board members
d. Access to government
information (City government
meeting agendas, a listing of
City services and how to obtain
them, government reports, etc.)
e. Access to public safety
information (e.g., from police
and fire departments)
f. Ability to participate in
interactive distance learning
classes from your home
Very
Important
9KE
Not
Not Very Important
Important Important At All
I
NOTE: IF YOU DO NOT CURRENTLY SUBSCRIBE TO THE ADELPHIA OR COX
COMMUNICATIONS CABLE TV SERVICE IN NEWPORT BEACH, SKIP TO
QUESTION 26 ON PAGE 7.
12. Have you seen or would you be interested in seeing locally produced cable N programs
about Newport Beach citizens, organizations, community events, schools, or local
government?
_ Yes _ Maybe _ No 11f "No,"skip to Question 25 on page
13. DELPHIA CABLE SUBSCRIBERS: SKIP TO QUESTION 20 ON PAGE 5.
COX COMMUNICATIONS CABLE SUBSCRIBERS:
Have you ever watched "Cox Channel 3 ", which features local sports, call -in, and other
programs that are produced by the staff of Cox Communications?
_ Yes _ No 11f "No," skip to Question 17 on page
14. How often did you watch "Cox Channel 3" during the past month?
More than 10 times 6 - 10 times 1 -5 times Never
15. Please describe or provide the names of the programs that you have watched on "Cox
Channel 3 ":
16. Is the signal quality for "Cox Channel 3" equal to the signal quality for programs on the
other channels of the cable system?
Yes No Don't Know
a
17. Have you ever watched the Newport Beach City Council meetings on cable channel 30?
Yes No f "No,- ski to Question 24 on page
18. How many times have you watched the Newport Beach City Council meetings on cable
channel 30 during 2002?
_ Once _ Twice _ Three times _ Four times _ Five times
More than five times _ Never _ Don't know
19. Is the signal quality for channel 30 equal to the signal quality for programs on the other
channels of the cable system?
Yes No Don't Know
20. JCOX COMMUNICATIONS CABLE SUBSCRIBERS: SKIP TO QUESTION 24 ON PAGE 6.
ADELPHIA CABLE SUBSCRIBERS:
Have you ever watched cable channel 3, which features Newport Beach City Council and
other local government meetings, public affairs programs, talk shows, and other local
programs?
Yes _ No Iff Wo,"skip to Question 24 on page
21. How often did you watch cable channel 3 during the past month?
More than 10 times _ 6 - 10 times —I - 5 times _ Never
22. How many times have you watched the Newport Beach City Council meetings on cable
channel 3 during 2002?
Once _ Twice —Three times _ Four times _ Five times
_ More than five times _ Never _ Don't know
23. Is the signal quality for channel 3 equal to the signal quality for programs on the other
channels of the cable system?
Yes No Don't Know
DELPHIA CABLE SUBSCRIBERS: GO TO QUESTION 24 ON THE NEXT PAGE.
-5-
I
24. Please indicate your level of interest in seeing each of the following types of locally -
produced programs on your cable N service. Are you veal interested, interested, not
very interested, or not interested at all?
VERY NOTVERY NOTINTERESTED
INTERESTED INTERESTED INTERESTED AT ALL
a. City government meetings _
b. Community festivals, neighborhood events —
c. Consumer protection programs _
d. Courses from area colleges and universities _
e. Environmental programs
f. Ethnic and cultural programs
g. Events /activities sponsored by the City
h. Foreign language programs
I. High School equivalency courses
j. Informational programs about services and —
activities of local organizations /clubs
k. Information regarding public emergencies _
I. Kindergarten through 12th grade
instructional courses
m. Kindergarten through 12th grade music and _
drama productions
n. Local business news and information
o. Local health and wellness programs
p. Local public safety information _
q. Local sports and recreational activities
r. Programs about activities and concerns of
persons with disabilities
s. Programs about City government services _
t. Programs about issues facing City _
government
u. Programs about K -12 schools and activities
v. Programs of general interest about the arts,
history and culture of Newport Beach
w. Religious programming (local churches)
x. School Board meetings
y. Senior citizen activities and concerns _
z. Special events and activities from area
colleges and universities
aa. Indicate other types of local programs that you would like to see:
25. How much of your monthly cable bill should be set aside to support the development of TV
programs about Newport Beach residents, organizations, events, schools, and government?
_ FOUR DOLLARS —THREE DOLLARS —TWO DOLLARS
ONE DOLLAR NOTHING OTHER:
NOTE. EVERYONE WHO COMPLETES THIS QUESTIONNAIRE, INCLUDING
SUBSCRIBERS & NON- SUBSCRIBERS TO CABLE TV IN NEWPORT
BEACH, SHOULD ANSWER THE FOLLOWING QUESTIONS.
26. How important do you think it is to have cable TV channels that feature programs about
Newport Beach residents, organizations, events, schools, and government?
_ Very Important _ Important _ Not Very Important _ Not Important at All
27. Would the organizations that you are involved with be interested in having programs
about their services and activities appear on a local cable TV channel ??
Yes —No
28. Would you be interested in learning how to make programs for presentation on a local
cable TV channel, using equipment provided free of charge?
Yes No
29. Thank you very much for your assistance. You are invited, but not required, to prov6de
any of the following information about yourself and /or the organization you are
associated with:
Name:
Organization:
Address:
Telephone Number:
-7-
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• Adelpnla and Cox have requested dint tlwir
franchises in INA*- -lien �
• Gather eornmunily'iiipdt munhycabl
related needs and Interest to be
negotiatloro proeeas wuh Adalphia aikCox
• Franchise Renoomr —Fesa piorldes b4 ooppbrtunklr
to negotfete'a hew Nanehisattfli'.tellecb -T•
community needs & interests ,
m k, 6.
CatitBasi
■ Recentfranchlaes are oftena! tift than-. .x
thos i'grrnted in the p"j,(84o ygrej
■ Franchise Renewal Process itriolves.S ifl
Steps a.
■ Pubilc lnpltk Iscrltlw4 gigt of franclfhite "9'
Rnewal< ° ess
■ Renewal process Is crhioal to d4srselnit '
-what future Aim,* will recg14', :A,,
Cable' uatobtalna,-,,•
.. telev�l6it`Iranchise.
a "'4rom tM City in
order . miles pf cable
ones i n' ktl9hre �
ii
Cable Basics
■ Franchise Agreement 19 a:Corn-M ,
a�FrenchhNlllsnon+xclusiva- ��-
a ECaitchlsa d_ a typai;level a, ality� .
of eervlce provided by cable cpslaf it -
.18 City: t abldg;by F ral and*
when con dtflriyra renewal
as Franch1si`df0earsior4(flSlhe z ,
New BGilsCaiite.Fats ''
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is ApprufdMatelpp ��7,� Cabld $ubecr,"m
ghomes widrtela) in ttw City r-
. A*otda uiiiea about Vtovlgr ;000
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'loCox 1r3 of Chy s 11,300 subscAb);
'.- • FIi��4bscrib0�ipanahafdon'. .� v
■ City has +sarepara nehtBe"C' sad .
1
m Frustration oyer"Wri,
which ral:eS Obb.
■ Frustralwn w
Internet service (Evti 4
■ "It's a monopoly" —wh
choice of cable provide
■ Good'Interest In more 4
pro6ramming . for I & alx
Genetaran*,PM
'Obseivatjaj
CO■■UNrMN[90S AND MTERESTS
■ 82% of.the focus group per"Olpm
Intereisirtm Isaming how to Produ
could be cobtecast on a local Acc
■ About two4hW. 61
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• High -speed Internet servke .,
In our current AgreeliisMS and
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• F.atremdy le29Nta �. k + '
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• Cable aornPanles owii_tha'ca z
Anoflje[ company woulG heYl: ,yt *"- ., t.
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CUSTOMERSATISFA
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■ 55b of the ,phoM aurvey roapprr 1pglNd,
Adelphie acid Cox durinp:th� „ sal they,'
were placed' on bell 41D9C of, °them &'>
they were on hold or leas Mun aba
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■ Receive and review Public input "m thij meeting. {
■ Gathe'ranalyza addidonal logy nh�a avaaU`k,
and technology. plans '...,q;:; 7, .
■ Finish draft Input"analyaN ;
■ Prepare draft of
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What
CABLE TV FRANCHISE RENEWALS
WHAT THE CITY CAN AND CANNOT ASK FOR
FAQs
(FREQUENTLY ASKED QUESTIONS)
What authority does the City have over regulation of cable TV operations? The City
does not own the cable system coaxial cabling, fiber optics or operations equipment. It
does charge the cable operator for use of right of way under city streets and on utility
poles the same as it does for other utilities. Both the Cable Acts of 1984 and 1992
permit local governments to include and enforce requirements for public, educational
and government (PEG) access channels, equipment, facilities and services. Federal law
also permits local government to require institutional networks (I -nets) that can be used
to link local community institutions.
the
2. If the City did not want to renew its franchises with Cox and /or Adelphia what steps
City O f
•l
would it have to take? The City may deny the cable operator's request for renewal only
Newport
if the operator is in substantial noncompliance with the existing franchise and
applicable law is
or providing poor quality service such as bad signal quality, slow or no
Beach
responsiveness to complaints, billing practices which are not reasonable in light of
community needs or the operator lacks the financial, legal or technical ability to
does
provide the services. Our franchises are non - exclusive and alternatives include satellite
service; however, to continue cable TV service another cable company would have to
and
buy the equipment (system) or overbuild the existing one at
great expense.
does NOT
3. Does the renewal process also include regulating cable Internet service? The
have the
Federal Communications Commission (FCC) is suggesting that Internet service is not a
a[/thOr %tj/
"telecommunications service" but the exact status of Internet service has not been
finally by
resolved the courts. The FCC does not regulate the Internet or Internet
t0
Service Providers (ISPs). Contact your state consumer protection office, the FTC or
Dept. of Justice Internet Fraud Complaint Center if you have complaints regarding the
ask for
Internet. Some cable operators have agreed to treat the Internet as a cable service in
franchise renewals.
duNng
the
4. Can the City demand better customer service? If negotiated as part of the new
franchise agreement, the City can require an annual technical proof of performance
Cable tV
test, a monthly status report on customer response time for answering telephone
fianch %se
inquiries in 30 seconds or less and production of specific programming on channels
dedicated to local public, educational and government programming (PEG). If random
renewal
monitoring shows inadequate performance on technical, customer service or
Programming issues, the cable operator could receive sanctions or penalties assessed
p/17CBSS
for its non - compliance.
5. Whv can't the City control the rates charged by each cable operator? The average
increase for both cable companies during 1999 -2000 was 5.2% annually; the change in
the Consumer Price Index during that same time period was only 3.4%. There was a
non- existant or modest increase in the prices on Limited Basic Tier (channels 2 -13)
because local governments retain the ability to "regulate" this tier. With the FCC's
deregulation of the Cable Programming Services Tier (standard service) in March 1999,
the City lost direct authority to review or regulate CPST rates. Complaints about these
rate increases should be filed individually with the FCC:
General Manager
Adelphia
1830 East Warner Ave.
Santa Ana, Ca. 92705
866 - 777 - =9782
General Manager
Cox Communications
29947 Avenida De Las Banderas
Rancho Santa Margarita, Ca.
92688
888- 367 -3712
Federal Communications
Commission
445 12th Street SW
Washington, DC 20664
888- 225 -5322
www.fcchdo@fcc.gov
City of Newport Beach -3300 Newport Blvd. —P.O. Box 1768 — Newport Beach, CA 92658- 949 - 644 -3002