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Home My WebLink About1993-09-13 93-426 ORDERCOUNCIL ACTION Item No. 93-426 Date September 13, 1993 Item/Subjects Opening a Public Proceeding Concerning Cablevision Franchise Renewal Responsible Department: Legal Commentary: See Memorandum to Municipal Operations Committee from Erik Stumpfel, dated September 7, 1993, previously distributed to the full Council. At its meeting on the 7th, the Committee unanimously recommended that Bangor open a public comment period pursuant to Federal law. The recommended length of the casement period is 4 months with two opportunities for public hearing comment. manager's ity rl�sl; .l _.Manager 4.a.:. - Finance Director NC vi, 1. City Solicitor Introduced For NEW BUSINESS X Passage First Reading Referral Page 1 of 3 93-426 Aetigned to Goundw Blanchette, September 13, 1993 CITY OF BANGOR (TITLE) Mrbtr,-___Opening-a- Public -Proceeding Concerning- ---- Cablevision Franchise Renewal By the City CamuC of Alm MY of Deeper. ORDERED, THAT _ pursuant to 47 USCS 5 546, the City of Bangor is opening a public proceeding for the purpose of soliciting written comments from the inhabitants of Bangor concerning Cablevisfon's expressed interest in renewing its cable television franchise with the City after April 26, 1996. Comments are to be solicited during this proceeding for the purpose of determining the following two issues: 1) Identifying the future cable -related commmnity needs and interests, and 2) Reviewing the performance of Cablevision under and during the current franchise term. The City Clerk and City Solicitor are directed to set up files for the receipt of comments and to maintain these files for public review. This proceeding shall commence on September 14, 1993 and shall end on January 14, 1994. wring that time, the City Council shall hold two public hearings concerning the above issues. 'These hearings will be held at dates and times to be further noticed to the public. The City Clerk is further directed to cause to be published a notice concerning this proceeding. Said notice shall appear as soon as possible after enactment of this Order for 3 consecutive weeks in the Midweek section of the Bangor Daily News and 1 week in the Maine Weekend edition of the Bangor Daily News. The City Clerk shall also poet said Notice at City Nall. IN CITY COUNCIL - September 13, 1993 ((PP/aa�ss/�ssed�� z4eIIT CLEice 93-436 ORDER Title, Openivg a Public Praceedigg,f,ggSSLRinB Cablevision Franchise Re4eval .....................'....... .... .... (( (. Amapa to P9........ Councilman 93_426 The form of said Notice shall be substantially as follows: LEGAL NOTICE PLEASE TARE NOTICE THAT pursuant to 47 USCS 5 546, the City of Bangor is opening a public proceeding for the purpose of soliciting comments from the inhabitants of Bangor concerning Cablevision's expressed interest in renewing its cable television franchise with the City after April 26, 1996. Written c vmients from cable and noncable subscribers who reside in Bangor will be accepted concerning the following issues: 1) Identifying the future cable -related community needs and interests, and 2) Reviewing the performance of Cablevision under and during the current franchise term. This proceeding commences September 14, 1993 and ends on January 14, 1994. Two public hearings will be held during this proceeding at tines Rod dates to be announced. Written comments should be sent to City Hall addressed as follows: Cable Television Comments Bangor City Rall 73 Harlow Street Bangor, NE 04401 Copies of any convents received will be available for public inspection at the City Clerk's office. MEMORANDUM 93-426 September ], 1993 TO: Municipal Operations Committee FROM: Erik Stumpfel, City Solicitor RE:A l�lev1_ The purpose of this memorandum is to outline a number of issues that the Committee and the full Council will he required to address, in some form or another, over the next several months, relating to the presence of a cable television franchise provider (Cablevision) in the City of Bangor. The Committee has previously received two memoranda from Rest. Solicitor Bruce Shibles dated May 15, 1993 and July 30, 1993, and should refer to those memoranda for a more complete discussion of several issues outlined below: (1) r.wie me:..o: si v Rate Revelation - The Cable Act of 1992 expands the ability of State and municipal franchise authorities to regulate rates for "basic service tier" cable transmissions, chiefly by expanding the types of signals included within the definition of the basic service tier. However, the 1992 Act requires municipalities to apply to the Federal Communications Commission for certification as a local regulating authority prior to regulating the local franchise holder's rates. Applications may be made after September 1, 1993, and normally will be granted 30 days after receipt of the completed application. As explained in the attached Maine Townsman article, _. a municipality does not apply for local regulatory authority, the FCC will act as the regulatory authority for that franchise area. Municipalities may also apply to the FCC to have the FCC specifically regulate local cable television rated. - Regardless of who regulates rates for the basic service tier, the FCC will continue to be the sole rate regulator for service levels above the basic service tier. This level includes most of Cablevision's current premium services. under the Cable Act of 1992, municipal authorities have no role in regulating premium cable services, except that municipalities may file service fee complaints for premium service levels with the FCC. Regardless, again, of who regulates rates for the basic service tier, the following provisions apply to rate regulation: -- Current cable rates are frozen until November 15, 1993. -- The "reasonableness" of a cable operator's rates will be determined based upon rates in existence on September 1, 1992. -2- __ A rate is "unreasonable" if the subscriber's oat per channel exceeds an FCC "benchmark." The benchmark is established on the basis of number of channels, number of subscribers in the franchise area, and similar factors. if rate is unreasonable under the benchmark approach, it must be rolled back to the bench- mark rate or by 10%, whichever rate is less. -- Cable operators may challenge a rate established under the benchmark approach by presenting a coat of service study to the FCC or the local regulating authority. If the study is found to establish a higher cost of service for the operator concerned than is indicated under the benchmark approach, the higher rate prevails. our preliminary information is that Cablevision plans to seek a cost-of-service determination in its Bangor market. In addition, cable operators are entitled to add to their service rates certain 'external" costa, including taxes, franchise leas, and increases in non-affiliate program costs. -- The cost to a cable operator of "retransmission consent' [see below] is allowed as an external coat only after October 6, 1994. Prior to that date, cable operators may not pass this coat through to their customers. -- Future rate increases will be tied to future increases in the CPI which may be exceeded, however, if a cable operator can show increases above the rate of increase in the CFI for certain items beyond the operator's control. The issue before the Committee and the Council will be whether or not Bangor should seek FCC certification as a local rate regulating authority. Currently, the Legal Department sees no advantage to Bangor sufficient to warrant an application for local rate regulating authority. (2) New Cable Bates Under the current franchise agreement, Cablevision is required to submit an annual rate statement to the City of Bangor. For the period starting September 1, 1993, Cablevision's rates have been impacted by the Cable Act of 1992. A copy of Cablevision's recent submission, comparing rates in effect for September 1992 and september 1993, is attached. -3- (3) Mms C sent The new Cable Act gives local broadcast television stations the option to require local cable operators to carry their full broadcast signal on the same channel designated in over -the -air broadcasts, without compensation to the local broadcaster, or to negotiate for consent to retransmit, e.c. to transmit the local signal over a different channel, or at a different time, or edited. The latter option, called •retransmission consent-, places cable operators and local stations in a negotiating situation, over issues of compensation, conditions of retransmission, etc. The City of Bangor, as a municipal franchising authority, has no statutory role in this dispute. My beat advice, and the advice of the Maine Municipal Association, is that this is a private commercial matter, to be worked out by Cablevision and the local broadcasters. The only role Bangor should play would come in the event we obtain certification from the FCC as a local rate regulating authority and the local broadcast channels are dropped by Cablevision after October 6, 1993. In that event, the FCC's benchmark formula would operate to reduce Cablevision's allowable rates for basic service tier programming, if the total number of basic servicetpt channels is reduced. Currently, Cablevision has made plans to the local broadcast stations with man - broadcast programming, probably to support Cablevision's current basic tier service rates under the benchmark formula. Based on conversations with the City of Lewiston, I anticipate that Lewiston will ask Bangor to join in a letter urging Cablevision and the local broadcasters to resolve their dispute prior to October 6th. While I do not oppose such an effort, I believe the City Council should take care to preserve a neutral position on this issue. (4) Franchise Renewal Cablevision's current franchise agreement with the City of Bangor expires on April 26, 1996. On April 26, 1993, Cablevision gave written notice to the City of Bangor of its intent to seek a renewal of the existing franchise agreement pursuant to Title 47 U.S. Cede Section 546. Under Section 546, Cablevision's notice triggers an obligation on the part of the City of Bangor to comply with the franchise renewal procedure specified in the Federal law. As a first step, Section 546 requires the City to initiate a public comment period for the purpose of (A) identifying future Cable - related community needs and interests and (B) reviewing Cablevision's performance under the current franchise agreement. we are required to commence the public comment period no later than October 26, 1993, i.e., no later than six months from the date of Cablevision's notice. _4_ The Committee and Council action required will consist of adopting an order directing the City Clerk and City Solicitor to Publish notice and maintain a file for public comments. The Legal Department suggests that this comment period be kept open for at least four months. In addition, we recommend that the Council hold at least two public hearings, concurrently with regularly scheduled Council meetings, or at a special time and date. Our current agreement with Cablevision, on its face, provides for an exclusive franchise. The Committee should be aware that under both State and Federal law, exclusive franchise agreements are no longer permitted. Accordingly, any renewal of Cablevision's current franchise agreement would not, by its terms, exclude other cable providers from the Bangor market. (5) Joint Munkcinal Cable Committee A number of existing area franchise agreements with Cablevision are scheduled to expire concurrentlyin the 1996-1997 period. This circumstance is not entirely accidental, but instead sults in part from discussions among a number of Penobscot area municipalities during our joint franchise renewal discussions with Cablevision in 1990-1991. The original group of a dozen or so Penobscot area communities that Participated in discussions with Cablevision at that time is currently re-forming in anticipation of the coming franchise renewal process. A first meeting of the group was held in Old Town on August 9th. Minutes of that meeting are attached to this memo. Bangor has been asked to re -join the group for purposes of the next round of franchise renewals. I recommend that Bangor re -join this group. (6) ryle Or'a_iiunce Under Title 30-A M.R.S.A. 5 3008, municipal cable franchises are to be granted pursuant to local cable ordinances adopted for that purpose. Portland currently has such an ordisence; Bangor does not. I request the Committee's direction to begin drafting such an ordinance, subject to Committee review and input. Preferably, Bangor's ordinance would incorporate findings as to cable -related community needs and interests resulting from the public cement process under 47 USC 9 546. I also would suggest to both the City Council and to the joint municipal cable committee that a uniform ordinance adopted by all member communities may be preferable to direct negotiations with Cablevision as a vehicle to define the terms of a future franchise agreement. Under the ordinance approach, area communities would set forth in an ordinance standard franchise language reflecting their determination of local needs and interests. Any cable provider would then be entitled to a -5 - franchise upon compliance with the ordinance standards and requirements. This is a straight -forward, clean approach that would prevent us from getting hung up on Cablevision's tendency, witnessed during our last round of negotiations, to draw a line in the sand on any issue with a potential negative financial impact on the local Cablevision franchise or its parent corporations, A -R Cable Services Inc. and Cablevision Systems Corporation. (g) Annual Renort Cablevision Systems Corporation, parent corporation of AN Cable Services - ME, Inc., our current franchise holder, has filed a copy of its calendar 1992 annual report with the City Manager. The report makes for interesting reading, particularly concerning Cablevision's current financial condition and indebtedness. A short summary of these issues is attached. to pc: Edward A. Barrett, City Manager Bangor City Council Encs: August, 1993 Maine Townsman article entitled "Cable Regulation" Rate Comparison Chart Minutes, Cable Tv Negotiating Committee, August 9 1993 Summary of issues contained in 1992 Annual Report filed by Cablevision Systems Corporation May 1993 Cable Rules watch Cable Regi: .01 Congress renews municipal authority to regulate cable providers, but not without a confusing law and volumes of regulation firs" have experienced mkable sncreases"tare harry has extended is, ately 56 million or roughly 60% of all vithe United States with mommende ritleo medium." while this growth has "rued W increase the pro drumming offerings to the public, ice has also created an industry with Ag- nifimm market power, The industry has not been m1munt to exploit this market power, and in fact has been aided by Congre in effar through thcpunge of WeCable Cmm- mu ona Policy Actor 1984. According to Congrnslocal find- tags"Pursuant w the Cable Communi- vs Act f 1984, vitas for cable Ish, vision <s habeen deregulated n approximately 97% of all fnncNau December 29, 1986. Since rate a<ra egunhon. monthly rams 'of Iowa, priced basic cable service have eyed In 40% of more for 28%of cable television subscribes _The aver- age monthly cubic rate has increased almost 8 times as much as the Can- er Price Index,ince nm deregula- onThis hr, as wall as a growing can - cern mus at We industry has became via vertically integrated led Congress m Paas in October, 1992. the Cable Tele Asian Conmmet Prumcuon and Com- petition An of 1992, providing then lo, BAssahom the Named.#utt Peomrtq 0$ajmm 1961 =of modem 1991. He brow the head Oreo µend SRman AVMatts, un independent consWnnfirm stworwrogy in a mwmie aM n{{Wnrorytmes. President Bush sells meonly veto cover - rum of his four yort in once. This Act has changed the landscape for cable television considerably and has thrust Idea 4mchisin aumandics back into the cable mgmation arena. Interne logic, h omr.ilit hardone so while e ognifing Congressionalty on the Marketplace, to me maximum extent tmmdle." The result is that the scope and terms of regulation perms, Bible by is local franchising authority significantly differ m from then available prior to deregulation, and me Cable Act of 1992 has left municipalt- ties other local franchising ao- thoritin uncertain of their new roles and mpooddefimen toWia This article auemplswprovide an - even some a the most commonly asked question, by municipaloffi,m, as Wry IF to understand she 1992 M. Q. Can local governments now mgda¢ cable m1msiod A. Fes. The 1992 Act specifically auNodaa Local Assuming cadmium to regime cable television rates, once tbry are molted by the Federal Cum- Commmion (FCC). At the same oin dme, however, the Act limits the scope of such authnrlty to what is deform as It "basic service tis,.' This includes at a minimum the "must mrry' channels of local networkaifflir ea (such as Channel 6 in Pol and or Channel l in Banger) this sidahm-Iand the Roble, Educational, and Govern- mt (PEG) channels required by the franchising av hwity. A addition, me local ffnnchissing minority may region ]am any and all compmenvegonN to receive the basic mrvicc tier. What is explicitly excluded from rate regain - don at the led I ... 1 In any programs- Ming rogramming services beyond me basic service includingallpremium channels (such as Disney or HBO) end all pap By Dr. Richard H. Silkman pervamicimmuh. Q. How does a local franchising amhodty became certified to regulate cable services? A. To be versified to regulate cable services, a local ffaacdoing au - simony moaaerdfy through an applica- on process wish We FCC Wan • It will adopt rate regulations within 120 days of becoming certified which wdl be consistent with FCC 11g, - Indoor, • It has the legal authority to adopt, and me pen onnel to admims. -rtgau la In procedural rules provide an opportunity for sanitarian" of We evis of interested parties. Such application is made by filing FCC FORM 328. (As of this writing. FCC FORM 825 was not available for distribution. Once it becomes avail- able. local franchising aumorhies may obtain it from the FCC or from the MMA). Unless challenged by me local cable operator or uNea the applies, Ann i+found m be incomplete, «mils cad u granted 80 dfe thy, site, edpt of the application. The FCC has re - costly changed twice We effective date of in cubic service rate reguhdonq first to October 1, 1993, and ore recently has moved this date up to September 1. 1993, and has indicated that it will not «ptaplic ti ve for certifies from Ideal hmtmieing authorities until September 1, 1998. Q. If the FCC has delayed imple Initiation of lod regulation, haw can we be =,used mat cable operators will iincrease ever, prior to the begin - ming of regulation? A. This problem was anticipated by We FCC. There are two provisions which prevent cable operators from jaclung-up ra es Line o local reguh. tins.First, doFCC, indeferring imple- MAWERIMCSMAN Arun, 1993 29 are also extended me eandng freeze of cable nes from August 4, 1993 to November 15, 1993. Second. u will be described more fully below, the nary dud for meamrmg; me reasonableness of local rates is defined based upon rat,, in existenon September 1, 1992, initiated by the cart of bving. Thud my extraordinary rate crackers since that tilde will be disallowed ted, in fan, are subject w refund by Me to cal cable operuof. Q. Are local franchising authors - ties required toregulate bible reaches? A jurisdiction for regulation of cable services resides ultimately with the FCC, however provision has been made for the FCC to vest such amhority in either stare or local franchising au daoridu('Ioml franchising authority) which seek to exercise such authority and which meet the established stan- dards described above. Should the to cal franchising authority fail to meet erd6cation stanalmda or other,.. not submit applicmiar for eartific der, the FCC will amenjuradium, was tM1e regulation of local cable operamrs un- cal ths, nay at which certification is at FCC m mgu- d resource. +tach a request hued on the premmp, trods that franchising m lama es red easy, franchise fee+ and thus have the should me [and franchising auoonty indicate to has FCC that it does not <.rtmvev.datmarea_ Ihmme FCChas Q. IIreguladon by local [ranch, ing authorities i, not manditudy. Who should they seek anification to rep Ire rarely A. order to answer this que,- me, it simportant m understand first, that me FCC did Pat upport me 1992 Cable An and second, that there am literally tens of mousmds of local fran- chising aumonts, across the country. As a reach, those municipalities whirr, seek to rely upon me FCC w regula¢ More ere likely it find memselm, at he end of a very long queue, and to Ste extent they receive mvice, from the FCC, those services A] be provided by a reluctant federal .Sense While not me avid Icga[ consequence, the probable practical implication of not ..eking certification is the grandfathering of local cable rates at So Atbnds, UhS arNN£SOWNALIN Battle Bdween Broadcasters and Cable operators Many as" wwMmd ads him runty been revarying mmmusibrombrox, and bma ,mm, (rod NBQ CBS & ABC dimmed, Bbm apenwv, sad parody two eory themsrcguding Jn+ooO<a term, any' pmn'nov et oe Stew tide (v+. Euend"i pretwlnnlbamaamt<m m,tnmmnreiner r.d rytot meo-e�Mmea onalnd yatem.aroegod deg tail m<o lery+rem me< mit Jieir agna, m,dw i W u compeY m" ro'samnen in Mane rare rLosen wen<geeau, nap ingw ang, to nn rot n. lnmpana corporation. ad op wn M1aveo couprulingbased hbargrningpmidnn mgarGog mmpenmdon. avtl are Me Sam,ngw coup tie cad cations. Sime e sued area Ioal Mortadomm.ingwtnon subsur ®bre Stam+ you may uchisd ours, im, involved in vet+ This Is Hantly MMA Ihim council Strauss' money schI$i musNaz n au become involved. UM ,emend m] icnmmernolegal me o play It, If,mmm eovell emadl teeamre oewwvanJei idea kilt Sad", tin hey Anle l( mandt are mer a tut repwnbleheH ,pill' IS panic an, they the ber, for mcap +r oaopessiom T Jy wine mg dons farC u n river in m,ho, cmemmme fom, wmob mismanng dons" for GIon"" car My long afrCaCrVmaimmgreemeng remmandvmple teal... hi To Ni+sake, am w Into dmm m ,wM M,h,mmmp,mv p1,m,ww you (eel at<apeeWIYBOMantl won to +nam mm,mJm ntmammmmMd«. plaa+e,ma nam w m. ream alw mapnn+rnng ewavaImU aka'Apa(Seprcmnexprawk lwittnwlrommone+rvrcgnladon kw •M.ainFa Bmmin BmM•prmme: ja..a.dmt) their September 1, INS levels. In addition, tier, are a couple of mboe consequences. First, any continued by a local cable elimination - Buyer His pvamfion- BuyerIW days unless overruled by the regulatory body pa dUlu dela). Withao many local franchising audianuea. iai,mt at all clear that the FCC can provide body rcvacw of all such filings, and it may be that approval by default be. comes undod operating p .... one . No my could May lead w higher then necessary rom, it may also result in d, fund, nor being required. Second, should me FCC undertake, to regulate local cable ata, that procu, will be a remotemore and far ca accessible process for local citizen.. Furter, to the extent that local ,I ere dkmm- i,fied with me outcome of mat pmts,, all appeals will have to be made to me FCC through a complicated] legal filing Q. la it necessary for local fran- chising amhmids to file application, for revaluation on 3epwmber 1.1993? A Na The FCC will acceptapri ns from local franchising cannot. has It any unit after th .date. Tb ... ie,, however, some advantage ro... king enc ication earlier rather than later. At pfc a e, locals es have b.m frozen attheirAlan l5.1933Icv- ,Is.Asnoted above ,Bids freeze "tends through N ... ads, 15, 1999. Thus, for those local franchising authorities which obs.. arly acidification ' ideation, me rats filed by local cable operators will be those in axkunce under the rare freeze. This. amore relevant concern n those situations in which current ratim re below the applicable bench mark levels, since once the freeze is lifted, a local able operator may rte local am up to that benchmark level and that higher raze will be purchased reasonable. Q How are rates fun fruit tier ser - cc s w be determined? A TheFCChudma lopedattwf "benchmark" ram based upon those rates found for cable rystcma facing et, fecdve competition in vaicusjuriedic- ne mmtghom me United States as If September 1, 1992. Thes<bench- mad rates establish a level clubs on, Fred by the FCC to be a -,m, l ost per channel. Tae benchmark ram, cap by formula depending upon the tuber of subsumm n the franchise met and the tuber of ch .... 6 and the number of satellite channels (e.g.. CNN. T65, etc) promised in the basic Servide What happens if local rats ase at or below the benchmark am? A. If local rets are found to be at or below the applicable benchmark, they may go into effect within 30 days, as they are pmmmed to be reasonable. Q. What about rams which are above the benchmark rates? A If area are found to be above the benchmark, she local franchising authority may order in Immediate re - accord bleacher 10% or to the bmch- markbr,t which ever is lot (no 10% provision u included decline the FCC found that on storage more for thine famous which faced effective mmpew roaere 10% below choice which did t.w ) Q. After the initial rata me sub label by the franchisees authority, are future rams disdaiined by the same ammummkapproach? A- No, not dnectly. once initial rates have been determined, future rates e per ted m increase no faster than therate of inflation. The FCC atnicipaar that this 'Prior cap' mechmbmall reduce theneed for fl- turn into lemptiona and streamlinene the regulatory grans. Q. Are there time limits imposed n the local franchising authority with regard to its regWadon of basic dera<r- c A. Yes, in... are a few relevant ,... I..".t,m,m. eme.anv. after a. the local ing is practical by the local cab to - s a below) to enure that mken within she established me Ilam®, me existing rano ger into affect object to ow,quent refunds if any part of the arm 6 law disallowed. In ria case. however. can refunds be gm°Q'Ae cerci.` mrt rum, oder wvvh trial rates can accord broth - A. FCC regulations permit 10,11 rate, to ed benchmark in two general srtmbnne. Finy the tions deene'extemar call, "eluding and trilobite free which may be add ed w me benchmark rates if it can be demonstrated that these coli were included in the derivation of benchmark rates and are not factored m the price index used t0 dmc Miry Nm« rate. Qn«redngly, ramvmu sion«definedasemcr- na1 came only wafter October 6. 1994, Unfortunately, the FCC be, agreed to permit pus through to mbember, of to programming cats, motor those u ibuted to affiliated organics r a. Incn thee will be capped at the rate of inflation.) Sec- ond, thr local cable operator may seek mjmtJy higher rates through a "coet- ofacroar"dowing. We Introduce for which are currently under develop - lit by the FCO. Q. What eantbya"coskofser xce shiscomp A. Aa discussed above, rates for the basic service tier are esublished relative to benchmark must, unless the local operate, can demommu, don it should be permitted to receive higher total, The burden of proof m thus placed on the cable operator, which must focus information to me local g aunfortyjustiymall a me higher than the applicable benchmark. An Ne present time, however, Ne FCC has not yet adopted standards for pm - forming and occiew.ng emwfaervice studies done by lod cable operators, but mtiupaw currents; a Second Fur- man Notice of PropwN Rulema0ng m adopt cou-skmvice standards. In the should any cable open we eek to sq et rates for the basic service mdjuyher in a of the benchmark mors stif some law through a cwt showing, the local 4onchue authority is permitted in prescribe a«tejmu6ed by the mit allowing, board upon gen- eral ,at ii regulatory prin- 'iPles. Q. Cao lural cableoperator, p.. along the recent increased in pole at - raiment ea A. ria unclear. ands whether the increase is vie imposed 'tax"or of doing business. The gu 'L.... ge n in, FCC agile tm lied on he and the cats of nu lymg; franchise r,- 9uirem m, for local, pool,, 'does ,nil and govemmmtal access on,,. nels" should be excluded fiom the cap and thus treated as external costs. Thus, the cable operator most also' that the pole attachment race inaesse is a form of simmamenlally imposed ou the provision of cable telai- rder to receive rates - off con comment under th, FCC bern, lations, o mentundertheFCCregn- latiov. Q. Can told franchising archon. has a different basic SmIC' tier was for different chase of subscribers? A. Coronary, no. In fact the Act iS the clear in this N;md. Rates must be uniform throughout the franchise area. There are, monarch, a couple of xcep6on, The FCC regulatlom allow for reasonable discounts to oe offered mically di,- Mnntaged iinErviEua6 wets are on fed, oral, state, or local welfare ndsunce. Q. Does the local franchising au- 7t7 IAWOFFICES TELEPHONE OF (20n 623 26211 FAX er T. Dawson abn 6zizF91c0aFw Sade BuildingIm ut Mannte (rgusq Milne 04332practice with emphasis onl and utility litigation IPrrltitetauM Sm"ces ISurveHng Iliad PWmmp/$ublvl5mn 15e1M wWU Pmcems IEnvlmnmmlL Asm"mmta *Fmcbmgelinm Ozvge IShcd waste ahs N our lwutewattrsynew 1PematlmtL baseball +Mame SW n *Site Nresdgetlors 45humml Deng, LAW k,oces *water Sumes MNNE RIWNSNAN Agus, 1993 31 thodty bay, regmaa.ryjurlsdictfo, Cray mr cable equipment? A, To the extent chat uch equip merst is necessary to receive Use buic n price is subject m local regular,,,. This equipment include, such item, in ceramic, boxes, remote trod u , to,di- tonal Film aand wiring Nat includes other indtlabbngUn- Eke the basic,mnc, tier which u rrynr dated based on benchmark rases, re, laced cable equipment is regulated based on an actual con mansard The procedure for doing this ire fairly com- pheaaM as it recur,... the refinance of si'equipment baak,C m which is as gned to direct costa of mrall'uon. additional outlets, and leasing and at, Falcons equipment. each computed ac- ording to guidelines i.,ned by the FCC. Further, the FCC require, that separate charges be established for each ngnificaaLIT different qpm of equipment and installation, and that shore charges must be listed separately from the raze, for to bazar service tier. Q. Wha Steps municipality ask gin to reglasesemi A. As noted above. the FCC has deferted is implementation of the to cal rare "gri ]sora aspects of Use 1992 Act un rl September 1, 1999. Begin- ning on that date, the FCC will accept applicant... for ossifications from lots] franchising authorities which meek to regulate basic service it,, Cable rates. Once certifitsuon is secured, the local franchising au0oary must promulgate regulations that are consistent with thou Issued by the FCC: it must adopt procedural rola which provide an oP pormniq for open and fair hearings for an parties involved; and it most er- re that it has both the tedinica] and legal Peters nnel to perform the antic, paid regulatory functions. to ddi- iron, it must Ne local cable op r wheat it his been «rr(ed by the FCC. This otification trigger, , r,- qubem m t for Ne cable npimm, m file its schedule of rate, for to basic ser vice ties and accompanying equipment within 30 days. The local franchising "th"ity must Nen reviewsthis fling against the applicable benchmark and take appropriate true, as discussed abuse. In those situations in which the bat franchising authority disapprove, to whole or in part, or approves Carr the objection of, participating parry Ne proposed mm, for Ne basic service tier and accompanying equipment, it 32 Amer m. 1993 Auc'EIDWNSNAN tin duration, including ajwem,air oris actions. Q. Can rhe decisions of the local franchising authority be appealed? A Ya. Decisions maybe appealed by any parry. Such appeal is made di- rectly the FCQwhirh harp ... mprcd an sLate appeals Pm matter, separating the 1934 Cable Are. ocrQ. Will regu6tion lead to a de- train: able rates in Maine? A Use iaciPmLLmlatory proceed - Figs.to sated a said tory prome is ihat Who can ti said ae to time w that the FCC anticipates restrict tat its new Cause me reduction oflethan IB% nationwide, ten,we of mfn,am of overmargu dung Use pwt year. Clearly, Congress and many con- n groups anticipate Na the imple, m,ntat,on RM1e 1992 Cable Act win result significant benefucable subscribers across the toTheIc gal door ha, been of, emd for ,unit, palliation Maine to begin to reIegulate local cable operators, beginning this Seprembeefnon, ofthe subsunualf- levcial stakes involved and the tete..]] el of frustration that was built up with ever increasing cable rates, mu- nidpaliues will be Captured to an a- pediuoudy and aggressively in secure for their cuiecm the most Favorable Eealrat permissible under newR�law. Ea Peter M. Beckerman, Town Attorney for Several Towns in Central Maine and Beyond 17 Years Municipal Legal Experience Including MMA Staff Attorney 1976-78 with Successful Major Municipal Litigation and Law Court Appeals Landfills, Lana Use Enforcement, Civil Rights 09'e nse, I= Unrest and Tae Ua ucefions, General Assistance. Labor . $Ctlook, Community Develoloment, Building Construction, Contracts, Roads Planning Boats , Boards of Appeals, Mbikdioru, Side Boards, Planning Cornrnhslons, Councils of G avennhenh, Sewer and wader Diddals, Schad Deparhnenh Reduced Municipal Rates as Your Attorney ata FrocPorh d What the Big Firms Charge No Charge for Initial Consultation Call 873-1900 9 Getchell St., Waterville, ME 04901 A.E.Hodsdon 3 FULL SERVICE CONSULTING ENGINEERS � -SPEgAURINGIN- WATER SUPPLY, STORAGE, DISTRIBUTION &TREATMENT emmynterm Gran Poplmbm !Tantile FAIpr7ar2a45 Peter M. Beckerman, Town Attorney for Several Towns in Central Maine and Beyond 17 Years Municipal Legal Experience Including MMA Staff Attorney 1976-78 with Successful Major Municipal Litigation and Law Court Appeals Landfills, Lana Use Enforcement, Civil Rights 09'e nse, I= Unrest and Tae Ua ucefions, General Assistance. Labor . $Ctlook, Community Develoloment, Building Construction, Contracts, Roads Planning Boats , Boards of Appeals, Mbikdioru, Side Boards, Planning Cornrnhslons, Councils of G avennhenh, Sewer and wader Diddals, Schad Deparhnenh Reduced Municipal Rates as Your Attorney ata FrocPorh d What the Big Firms Charge No Charge for Initial Consultation Call 873-1900 9 Getchell St., Waterville, ME 04901 RATE ,. BasicJFemilY Curren Sept.'93 Differential Premium Current Sept. 'N Differential First Eo mllrpude QWMNe stlm W_ olp1B. ices rrais minable lessin Brasserie bla. Epuipmanl is ysese wn sees rie or aervim and rpulmE W sear¢. X e¢ p torsi of lnaWlabon an one llm chargee m asinine Sm"'meas sai im. ' SpWGwnnel is mw svialadb an an ala cane heti¢ at a promorwal lm br a XmMd lima mn Includes SpmsGnamal. Sala -3_5_81 -._____ BrwEe'et Basic _Ss93 Broaasn Bate 95 5 4,14 %mCV C1aW InCWed aalIJ7 gm1¢C el #1.95 59.95 $ OM Sa.BS 51.12 -5361 p ressable wwnla wim mmme FREE -35951 Mdaka'31 wm poppyupoppy3595 3 3[O war MY 3 2U91Ger Xuwbal4) _8 Fealat premum pro9q^min9 atltilbnalauYeh wantaai wq Premium Current Sept. 'N Differential First Eo mllrpude QWMNe stlm W_ olp1B. ices rrais minable lessin Brasserie bla. Epuipmanl is ysese wn sees rie or aervim and rpulmE W sear¢. X e¢ p torsi of lnaWlabon an one llm chargee m asinine Sm"'meas sai im. ' SpWGwnnel is mw svialadb an an ala cane heti¢ at a promorwal lm br a XmMd lima mn Includes SpmsGnamal. CABLE T.V. NEGOTIATING COMMITTEE August 9, 1993 Old Town Community Center Present: David Cole, Old Town Erik Stumpfel, Danger Cliff Barker, Lincoln George McDonald, Holden Candy Guerrette, Orrington Marie Baker, Hampden Scott Thomas, Orono Gerry Kempen, Orono Harold Parks, Brewer Bruce Locke, Milford Fred Breslin, Searsport Scott M. Tilton, Winterport Dana Reed, Bar Harbor Gary Dorman, Corinna Virginia Fortier, Old Town David Cole noted that he had heard from Bucksport and Dexter with both expressing interest in joining the Committee. I. welcome and Background: David Cole welcomed everybody'aTd presented a brief history of the prior committee and its success in negotiating a five year franchise. It was pointed out that Charlie Woodard, the consultant who negotiated for the committee last time, is no longer available and that whoever is obtained would probably cost more money. II. Grcundrules: David Cole went over the groundrules that were used last time and that would be used this time. They were as follows: 1. Each community, regardless of size, gets one vote. 2. All communities share equally in the cost, regard- less of size. z. A community may withdraw at any time, but must pay its share of the costs that have been incurred at the time of their withdrawal. III. Discussion: All participants expressed interest in joint negotiations. Dave Cole would explore the availability of consultants and would call another meeting when a consultant had been contacted. Adjourned, David 0. Cole, Secretary Pro Tem Cablevision Systems Corporation - Summary of Financial Condition per 1992 Consolidated Moral Report Net revenues (1992) Operating expenses Operating cash flow oepreciation s amortization Operating profit Net interest expense Other expenses and loss reserves (net) NET LASS (1992) + $ 572.5 million - 324.8 million + 247.7 million* - 168.5 million + 79.1 million - 193.4 million 136.3 million $ 250.5 million* Corporate net worth (12/31/92) < 750 million> - Accrued stockholders' deficiency <1.25 billion> Total debt < 2.0 billion> The 1992 report also indicates that Cablevision Systema Corporation is currently being audited by the IRS on its corporate tax returns from 1985 forward, with significant proposed adjustments.. *Figures are rounded A Newsletter For Cable Franchising Authoridbig,, ..., SPECIALEDFFJON A Publication of Wilkes, Ards, Hedrick & Lands bray, 1993 um4aue e of bmihn bass inwi,N as, m how oor Iw am au mIA in the firamm , [indication p,aeas We thus developed a Iia a mise ¢N6atioa imp of aeMar whim an dcema aM pian Mass.. Anyone iahresW in lite, may all the fnllaaing at xa2anntua Manta Jay Genu Rummy L Wwawnb Aa coo M Cmss The FCC has now issued its call page Order governing, among other things, ate regulation by load franULing authorities of the SO - c lle-0 able basic tier ise Dhe regular quarterly edition of Cable Rules Winter will mnccutmte on the - methodology by which local authorities; an review basic tier ata and order ordnance and Islands if appropriate. no Special Memo Edition will focus on the FCC mertifiation process by which Ions[ franchising authorities an pert a theirjurudiaional power to regulate basic tier servim rates. The highlights of the FCCs mniaation paramount arc e Local authorities wishing to regulate basic tier ur im rates most request FCC mniftation; SPECIAL MEMO EDITION THE FCC RATE ORDER: OBTAINING FCC CERTIFICATION FOR LOCAL FRANCHISING AUTHORITIES -- WHAT TO DO AND HOW TO DO IT all other cable rates will he regulated by the FCC ft or le nonchalant. A standard FCC mnifiation fling form has ban adopted and convenience to our radem we mom attached a sample copy of that form (FCC Form 328) to this memo. (please note that FCC Form 328 has not yet been offinally approved by the Federal Olftce Of Management and Budget but it will undoubtedly be approved ty, OMB within the next few weeks.) e mesal authorities am not required to regulate basic able der rata and, heir, arc not required to file aoymtifati0n nequat; if are authority does Ot wish to regulate, it need [rely not file a favor, in which case the basic rate will be left accumulated. If no certification request a filed, the FCC will not step in and take jurhdiction over basic fates. e Dae mriff cation form acquires the authority to certify that (a) its regulations are (or within 120 days of cenisation will be) wmkWnt with the rate regulations adopted by [be FCC for the basic service tier; (b) it has the legal authority to adopt, and the personnel to adminfitersuch regulations; (c) its procedural rules provide (or within 120 days of certification will provide) an opportunity for consideration of the views Of interested parties; and (d) it dos not dispute the wI1XF5. Arctic. HEDRICK & IANE Olanned Washena.OC a Feimm, vir mica I Rnnad&Mapa'd a Mnemliq MmlaM presumption that cable systems in its franchise area are no I subject to -Sherries cumpethian' .M of there representations are made by meaning a Simple 'yes - no' monlat. t If the IWaI authority wishes basic rates be regulated, but caro, nerds, thaLit has the legal authority to do s0, it may still file the farm, along with a refused asking the FCC to take ju&Wa'On. The vaquin most include a statement detailing the nature of me legal minces. In these Circumstances, the FCC will take jurisdiction and become the regulatory authority for the basic tier rate Until the local eoimment secures such authority and again seeks certification. a If the Katharine desires to regulate but celiem that it lacks the financial Departure to do SO it may file the form. stating that it lacks the financial resources to regulate and formally requiting the COMM Salon no do so The request must demonstrate why the proceeds of the franchise fees which the authority currents cannot be used to r me Ont of rate regulation The Commission operates on a rebuttable presumption that frontier, Osteomies receive franchise fees suffident for their regulatory purposes. The demonstration Treat include a detailed explanation of the authotiq's emting regulatory program and why the fees are mufficient If the Commction determines that the franchise fees cannot reasonably be afte ed to cower the existing regulatory program plus the cost of basic tier regulation, then the FCC will assume jmddiction. it Franchising authorities may rile [he FCC cenlficalion Form 328 starting 30 days after publication of the Commission's rate regulation order in the Federal Register, publination will probably take place in mid- m.late May so met authorities an begin to rile surtiffinationiS in late lune A COPY of the cenifiation form must also be sereed on ime companies in the franchise area by first class mesh on of before the day the Iran is filed m the Commission and the authority must uib, on Form 323. The form must be fled either nceby reg6nuM mail, return receipt requited. or by hand dervety to the FCC in Washington. D.C. (in which me the riling date will be stamped on a copy presented to the FCC for that purpose). The file date n the return receipt or by hand stamp is important because it begins the statutory countdown for Commission approval of contraction. e The inificaion will be automatially Silence A dam after the riling date unless the Commiwion affirmatively Dollars the filing within that 33 -dm period as iusuffidety. If the FCC disappro v the mnificatiombecouse theauWolitylacks legalauthords' to regulate, then the FCC add eMreise ratemakinf aulboriry until the francrismil authority qualifies. If the diupproval seems from the fact that the radiants will not have in plate a regulation within 120 days stating that its regulations will be comottant with the FCCs regulations, me FCCwill automatically assume jutistiniort If the defect atria because the authority will not chain 120 days have rales providing for participation by intermmeed parties, the Commission will allow a reasonable time to cure the defect, but if it n not wrretted, will take jurisdiction. • A cable system cannot huff stop the certification ham bumming emativq its only reirmarse is to rile eithera petition for reconaiderntlon atterthe effective resignation date within the normal Commission timefrvme, for riling such petition; or a pare fion for rewarded thereafter. If It riles a petition for eraann urging that it faces 'elfeabe sompetition," then the mniMadon is auromati(alIv stayed until the 'eRmtive competition -issue is resolved.lo Cable systems filing frivolous petitos far reconsideration solely for purposes of obtaining the automatic stay will be subject to fines and forfeiwra. If a system files a petition for reconsideration censideration on grounds other than 'sensitive compeunon,' there is no automatic guy of certification but The system an request a stay. After the contraction becomes effective (and the time for filing petitions for reconsideration hu expired), a cable svatem may still file a petition to revoke the certification. However, in this ase, even if the grounds for revocation is the of eftecGve competition, there is no automatic pary. a The FCC will not notify the authority that it verification resident has became rehearse. The authority must itself track the 36day period and, upon Its expiration, note the effenive date of that monifation. The effective date S important not onIS because it signifies Commission approval of the certification request, but also because it begins a 120. day period during which the authority must hale in place (a) rules consistent with those adopted by the Commission with respect to basic tier regulation, and sgru S. M9s. HEDRICK k LANE. Chmreted Wuh,nAae. DC. • FaiRu.YgiNe • RaheN. Metcalf • ""Oil. M•ry4M (b) rules which give imudvA parties a reasomoEle opportunity to comment during the tate Hisma The pn,cov Them were the two which uthmiry agreed to implement W to unification request. Etrem though We Commission may have approved the cenificatem reamaq nevertheless, the canightion does not become TWO effective until these two steps have Wren liken. • The FCC will permit, but not require joint certificatiov by different tunable areas for communities serve] by the same system, and for in diMe nt franchise areas served by nJRrent rya reins. • Ores, the authority has Men unrolled, and after it has adopted the appropriate more, it met then notify an cable operators in the franchise area that these require ears nave been met and that the authority, rands to regulate basic service rateleis he the act which btiogs the system under rate fegulamry jurb- diction. There is no speriGe FCC form for such notification. Ithe cable operator then has 30 days Imus receipt of such notilcation t0 either (a) file its basic rare Rhodulewith the lend authority, ming FCC Form 393, or (b) if timely, file a petition for reconsideration of the cernfication. Form 393 is a rather complicated form On which the able system must calculate its basic rate for cable service and for regulated equipment used with that semen. FCC Form 393 will WHO the bate document in cable tier rate regulation. The mechanics of this document (and the regulatory steps which the authority Cor mite with respect to it) will be discussed more fully in the regular quarterly edition Of this newsletter. FRANCHISE G& In response to reques¢ from subscribers, our law firm would be pleased to provide the following FCC certification service package hr Waal frocaisNg authumniex The service package includes: Providing franchising authorities with the FCC certification form (FCC Form 329) and reviewing the rescuttd form for wmPrloness and aavrmy. - Hand filing the mtilwtion form win the FCC in Washington, D.C, obtaining the date-stamped proof of filing and meeting the 30 -bay ceniGnnon filiog period. Notifying loin) authorities of the eHemlve date of Commission certification approval. Reviewing relevant franchising authority ordinances or regulations to determine compliance with the COmmision's certification requirements (i.e, adoption of rules consonant with the Commission's rate Order and runs providing for participation by the public in The rate cenew process). Reviewing and advising concerning the required notification to Wood cable systems, receipt of which notification will subject the able system to the albumins rate regulatory jurisdiction. There services will be rendered for a total price of 3325, plus outnf-pocket mailing and duplicating casts. The price will not include any matters Outside of those IhtW, or any matter arising from requests by the alit ardor orthe Commission to mke)urisdinion or fromarry Comm6sion regnar for additional information, Of from The filing of any petition for reconsideration andsor recreation of ¢niftem on. We will, or course, be pleased to provide legal mrWces with respect to these latter matters, and with rspect tO any hsaes concemiag calculation of untenable ones, rollbacks, refunds, etc. at normal hourly rates. My authority interested in there savhor MY all The following at ZM-457 ]&W: Martin lay Gaynes Raoaey L Wocdworth Robert M. Guns Wfi F ARILS, HEDRICK A t E, Camsevi W,,neme,DC • Feidw Y, nil • peme4.M1omd • MvpMb. Maryland Cable Regulat' 01 Congress renews municipal authority to regulate cable providers, but not without a confusing law and volumes of regulation By Dr. Richard H. Sitkman Few indonaes base a:pedenced ouch remarkable successes as, the cable industry. In a very sb ors pmad of time. the industry has extended Its tech to approximately 56 million households or roughly 60% of all households in the United Swa,, with aelmiami and has bacaccording to Congressional findings -,dominant micianande w6 m medium.- While this growth has loved to minutes the pro gramming offerings to the public, it has also created an industry with si, niflcant market power. The industry has not been reluctant to exploit his market power, and in fact has been aided by Congress in it, efforts, through the passage of the Cable Cam - mu e, Policy Aa of 1984. According to Congressional find g, 'Par manuo the able fnmmuni- of na have 'It"fard cable egu deregulated services have been deregulated in approximately 9'1%ofalle al <e December 1986. Sincincl Since sate deregulation, momanthly rata forme lower priced basic service increased by90%onmore for 28% of cableel onsubscribers.. Thecae age monthly able rue has ;mesad almost 9 times so muchr as the Con ma Price Index sitter c<mm dmeguls. uanThu fact, as wall in a groMng con an that the industry he become too vertically integrated, led Congress to pass in October, 1992, the Cable Tele nn Consume, Protection and Com- petition Act of 1992. Providing then M named H Mkoun, tmed ar R<2ev e( 41, Made Seale Pfanaiur Of ysi feel ,md(Cn hill 1992. He&row4whAm OfflF Mand Aikman Amadanx an indepmdene anmlungfic,om QuIty in ectm is and �aro0 Gwa. President Bush wiN she only veto over side of his four years in office. This Aa has changed the landscape for cable television considerably and has [hwt local frmNhing authorities bad into the cable regulation arena. mtaes. iighPh acvm,,t has donevo while 4d mil intent to n onthe makegplaceato We maximum extent fm,ba- The result it that she copmse and of regWauonpems ablebya localfranch"ngauthority e signihcandy different from those mi661e prior 0 dereguladnq and me able Aa of INS has left municipah ties and other local Franchising au- thontim uncertain of their naw role, and responsibilities in 0tu arena. This ardcle attempts to provide an - wait to of the tcommonly asked elation.. by municipal officials as they uy, to understand We 1994 Act. Q. Can Iocal governments now regulate table trimness? A. Yes. The 1992 Aa specifically ,,that = local franchising amhondo to regulateablealension rote, once they are ratified by the Federal Com- a Castleman (FCC). At detail tmime, however, the Act limits the scope of such auW onty to what is defined as the basic service tier." This include, at a minimum the 'must cagy' channels of local network affili- es (such as Channel in Portland or Channel l in Bangor) pa mili and the Public, Educational, and Govern- mt (PEG) channels required by the hanchuing authority. In addition, the local franchising authority may regu- late any and all equipment required to river., the tom c What is explicitly excluded from a,yi ran at me, local level are any program- ming services beyond the bull ervice including all premium channels (such as Disney or HBO) and all pay, penviewchanneh. Q. How does a local franchising authority bwmn certified b regulate cable A. To be certified to signals cable ,"am, a local franchising au- thority moat really through an applim on merely with the FCC that: It will adopt rate regulations within 120 day, of becoming certified which will be consistent with FCC r<gu- Wdom. • It has the legal authority to adopt, and the personnel to metric rate regulml •lta procedural cut" provide an opportunity for consideration of the eve, ofmccrested porde,. Such application is made by (ting FCC FORM SPD. (As of this writing, FCC FORM S28 was one available for distribution. Once it becomes avail- able, local franchising authorities may obtain it from the FCC or from the MMA). Unlet challenged by the local cable operator or time,. the applet- u found to be moompletc, re« rtifi- ofuh granted 30 day, after ceipt he application. The FCC has re rndy, changed twice me d caw, date of its cable service ram regulations, Fitt to October 1, 1994. and ore recently has moved this dateup to September 1. 1933, and has indicated that a will not accept applications for mr," from land hanchhce mg aumonue, until September 1. 1993. Q. If the FCO has delayed hi mmmum of local regulation, haw can we be assured Nat cable operator, will prior to the begin n n irates increase g of aguladoa? A. This problem was anticipated by the FCC. Three are two pro which prevent table spirit.. from jading -up res a par, o local regula- the.Fiat, eye FCC, indetecting imple, MAINESOWNSMAIJ Aspect. 199J 29 nn also extended she existing freeze of cable rates from August 4, 1999 to November 15, 1093. Second, as will be described more fully below, the+un- dard for measuring site reamwblencu of local rates is dented based upon existencerates in n September 1, 1992. initiated bthe cost of living. Thus. any extraordinary me int eaic$ 'trice that time will be dvallowed and. in fact, are mv,ct to refund by the to cal cable operator. Q. Are local franchising auami- es required to r,guhH able services? AJmom,too, for regular of cableei des ultimately tely with the FCC, however provisionhas been made ford a FCC mvatsuch unhappy in eithert or local franchising an- downturn u ha tn a(1t®I franchising authority.) which mak to ",,seise such authority and which meet the established am - dards described above. Should nine lo- al asal franchising authority fail to mat certification standards or other ove not ,about application for certification, the FCC snit mwatpcisdicdon Duet she regulation of local cable operators on - til chat baneatwhich certification i+so, rued. If, however, the local Iran, m, . gmthmhq,,quesatm FCCto gu- hH citing alack of financial "mmaw the FCC has indicated that it will ticry such a request based on the oremmp n that Frvmhamg authorities rc- ve franchise fees and now have the avaryrnouan to sepia in should me total franchising authority indicate to the FCC that Its does not seek[orcgulate mus, this theFCC hu indicated itwould be remmun m over- ride such a decision. Q. If mgolation by local rranchis, Ing authorities n not maatlamry, why should may sear artifiteuu, to rep - I'm A. In order to answer this quit - don, it is important ounderstod first, that me FCC did not support she 1992 Cable Act and second, that mire us literalty teras announce, of total fran- chising ancients across me century. As a result. more municipalities which mak to rely upon the FCC to regulate muces me likely to Find themselves atm, end of a very long qu,u,, and to the ,most that they receive services from the FCC, those+snits will be provided by a reluctant federal agency. While of 6, strict legal consequcncc, the probable practical implication of not staking certificationis the gnncifammmll of local cablerates at gel August 1991 MA(N£SOWNSMAN their September 1,109 Foods. In additium thele ire a couple of more unions consequences. First, any rates filed by a local cable opaamr pur- dantbecameeffective an thin 90 or 150 ays undies overruled! by Ne mpl mry body (so Hamismt him). With so many local franchising authoritiesit is not at all clear that the FCC ca, provide tamely reviewUf all such filings, and it may be chas approval by default be - m ... unit procedure, No onlaoulddH,tF slead to higher man necessary rates, it may also deme io rn shoutfundnot FCC undertake Second. should the FCC udust p .. w relish¢ local sable rata. Nat protea will be more e te and far less accessible i, to procaent tlacal citizen. Funned m me ascot that mai ideas are fieewm the outcome fthat poccas. A. No. The FCC cauma from local fra how what arthication earlier At the present time. whim obtain early ardficationme rates filed by local cable operator; will be those in sentence Under the ate (raze. The is a more rdmant concern n those situations in which current re below the applicable beach. mark levels, since once me freeze is lifted, a local cable operator may raise Intel rata up to that benchmark laid and that higher ram will be presumed reasonable. Q. How are ata for basic des c acr- o be determined? A- TheFCChasdevedopedastof "benchmark" rate, based upon mo+e rates found for cable rynema facing ef- fortune compe ium in variousjummn- ns throughout the United Sams as of September 1, 1992 Tbeae bench mark rater establish a level of rates do hoed by me FCC to be a "reasonable' est per channel. The Immomah miss vary by formula depending upon the umber orrum,mbers in the franchise and mnen e number of char.and me number of ®mllite channel, (c.g., CNN, TBS, em) provided in the bass r tia, mrv¢1. What happens if local unit ee at or bow elthe benchmark arms? A. If local rates are found to be at or below the applicable benchmark, they may go into effect within 4o days, in they are presumed to be ,summit. Q. What about rates which are above the benchmark ahem A. If rates are found to be above the benchmmk, she local franchising mthonq may order an immediate re- daction of either 10% or she bench - mark level, whichever is her. (The 10% provision as included becawe the FCC found that on average rates for move ,systems which tams effective ,mp,d tionwe re 10% below Panic which did t) Q. Mer the anticd rates are can, lished by the franchumg minority, are future e, determined by the came benchmarkapproach? A. No, not directly. Once initial rates have been determined, future rates are permitted to increase no faster than He raw of inflation. The FCC anticipates that this 'pr a cap' mechanism will reduce weneed for in lure rare investigation, and streamline as "Flown, Q. Are draw time limit imposed on she had franchising authority mm ` egad wits argdumn ethnic maser- areas? ener- ce A. Yea, matt new a few relevant owl to emurc mat level mean the benchmark lam action is taken within the ext: me Rama, the existing ate, effect anbjat to soWequmt a Is lend up to 90 eest by the FCC. Q. NTat is meant byacmtofeer- ode"moving? A. As d ... word above, rate, for the basic ervice tier are a tablished relative to benchmark mesa, unless he local operate, an demanstrate that it ,hould be permitted w ere higher a. The burden of proof is thea placed on the cable oper which most pre.ent information to me local franchising authontyjeatifying a rate higher Paan the applicable benchmark. At the pram[ time, however, the FCC we not yet adopted standmds for per- forming and reviewing cwtofmavia audita done by local cable omeasure, but anticipaw mmadng a Second For- der Notice of proposed Rulemakng to adopt maofservice commands. In the draw any cable operator eek unsa at rates for the ase, service of the benUmmk rams tire in these rues through a cwt ,holing, the Intel introduce authority is permitted an prescribes mtja6ficull by she ont showing, based upon gem era? cost -of -service regulawfy Paid - cipla Can led cable operators paamrs past along the rent inveare in poli u- nchmetn ntet. tdf ECTIRT DAWSON, E,q. It. be C H. SPVRlFNG. Her, - Q. Are war, scut, which meal rates <mn..sandbench- mark levels? A. FCC regulation, permit 10,11 rare, to bchmark rates in m0 general exceedrnanswer, First the regula- na define bxarnal" cons. including and franrbne fees, which may be ad in the benchmark fate, If it an be demonstrated that [have cats were not included in the derivation 9t benchmark more sada of fromred into me price index used m determine Educe area (Interestingly,, consent concerAs ..r nalncme onlyafter October 6, 1994. imem manly, the FCC has agreed [o permit pass through [0 wandeas or iracovem in programming cum, accept tbae attributed to d[Hated orgamma- lm. Increases in these emu will be capped at the at, of inflation) Seo end, the local cable operate, may and to justify higheres through a osrh ofserowe showing, the procedures for which cif, cwrntly rules develop - A It is mdar, and depends upon whether the incrae is viewed w a goer imputed -m or simply a cost of doing business. The specific lam Forge in the FCC regulations is that ovision of cable sod a lube mrvia. fopos11 the richue, fee, and the u of sawyering fnnchue quiremem, for local, public, aduca- onal and Installation] access chain nel- should he excludM from the cap and than treated as external< a Thusr , he cable operator ,go, that the pale attachment into increase a form of governmentally impwed n the pro of able talen- ,,a n nedd ma ware cntunderNeFamagu- lationQ. Can lost? franchising aumor er n differentsem t basic rrtier rates fodifferent love of subscribers? A. Oenemlly, no. In fact the Act as rude dear in this regard. Rates mum be I'dwon throughout the frmchis area. There are, however, a couple of wapuay. The FCC regulations allow for «nodal, dnmunto to be offered seniorto citeans; or economically di. advamgui imi"dmle whoMe nfed era?, state, or Ircai welfare assistance. Q. Don the local Panch.... g an- IAWOFFICEt TELEPHONE OF (20F) 6332628 PAX Peter T. Dawson (201) 611-1791 low,ba Saving, Bait Imalkng Hard HVWngtSiNtvimrs 150 State Arcst a mumnand Asma , Augwa Mdr 332 cieud wase Management General civil pacucevath eanphzs¢ on municipal and ui:17 htigauion FArrNtenunl Sellae FSweFMg Hard HVWngtSiNtvimrs e5tlen mduW Phases a mumnand Asma , a5¢wen¢ISlwm runway cieud wase Management 4wa9e Wmet syetem, *RxAwddml FroMmis +Was SWnutes *ae unimmomews 4stmctind Dings abuts us *Water Suppan MANE fi1WNSNAN Atgm'41993 31 thority have regularwyJaisdial over cable equipment? A Tome extent thatsuch equip rural is avy to laerw the have service der, Let price is subject to local mgma mrs. This equipment includes such il e tebox edcouun, for .d nal let Nnin, in ....as, and wiring Nat includes other inside ublin¢.Un- laced based an benchmark rams, it - Laird cable equipment is agda ed based era an acmil at mndud. The procedure for doing this is fairly core - pG<ated as it requires me definition of sequipment bask, which is igned me direct costa of installation. additional edged, and Inner; er; and re- pairing equipment esah computed u- ... must s..fame to initiation, issued by the acal charges be established lot each significantly different type of equipment and imalummn and that these charges must b, hard actua ly from the races for she basic service her. Q. at amust A mmicipali uk ry gin to replace A. es noted above, the FCC has deferred la implemmmtion athe 1,- cad escal rate regulation sspec s of Ne less Act malSeptember 1.1999.legin- mass on that date, the FCC will accept applications for certification from local frmchiaing mthmitia which ...k to random buic service tier cable rata. Once arldfiadon is annual, the local franchising umbel must promulgae regulations mat are consistent with mase issued by me FCC: it must adopt ma,dural ma which Ill m on, rura ry for open and fur haring, for all puma involved; and it must en- s Nat it hu bath Ne technical and legal personnel to perfama due amici - Fred regulatory functions. to addi- day. it p notify the local cable o rwhmit has been rectified by me FCC. This notification triggers a re- quirenum for me cable ,pester in file as mired ile oftates for the basic set- vice and accompanying equipment withn90 day.. The local franchising authority must Nm review this filing ,lines the applicable benchmark and take appropriates as discussed above. In those n tions in whichthe local Foothill authority disapproves n whole or in part, or approves over me objection of participating party me propmed mea far Ne basic service der and accompanying equipment, it 32 cards 1993 MNNf77WNS1GN writtenmust issue a call radial ajmtificadon olid am". Q. Can she decision, of the local fnnchisiag authmiry be a jus aim? A. For. neneons maybe appealed by anbparry. Such appeal ismade di- ratly Ne FCC, which by preehoped all into appeal, processes in matters regarding the 1992 Cable Art. Q. Will regulation lead to a Be r - r m cable w in Maine? A ItisdiMculteosaywithoutill tiag the actual regulatory proc<etl- iaga.Whu can be said at this time is that the FCC anticipate, that is new regulamry,vucmre will result in an ass stage nm reduction of a little lm Nm 19% nationwide, inclusive of refunds ofmadaga during Ne put yet, Clearly, Congress and many can: ugroups anticipate that me sal mantatimi of the 1992 Cable Act will cult in significant benefira to cable subscribers arm the real Thele gal door has born opened for munici- Feature in Maine in begin to re+egua, local cable operate,,, besummg this September In wow of the submnual6 sial sakes involved and Ne overall level of Iruaration that was built up with ever increasing cable rate,, ran- mcipall will be expected to - peditiously and aggrcasivdy to ,cure for rheic citizen the most favorable rat pis ,sable nader me net.ae.mmiaw. o Peter M. Beckerman, Town Attorney for Several Towns in Central Maine and Beyond 17 Years Municipal Legal Experience Including MMA Staff Attorney 1976-78 with Successful Major Municipal Litigation and Law Court Appeals Ustrad b, Larul Use Enforcement, Civil Rights Defense, Tat Used and Tat Wluofmns. General Assistance. Labor, Schools, Communtry Development, Building Construction, Contracts. Ransil Planning lbatls, Boards of Apparel lubgrafions, State Boards, Planning Commissions. Councils of Govemmerts, Sewer and Wates Districts, Schad Departments Reduced Municipal Rates as Your Aftomev W a Friction of What the Bg Firms Charge No Charge for Initial Consultation Call 873-1900 9 Getchell St., Waterville, ME 04901 • A.E.Hodsdon d O FULL SERVICE CONSULTING ENGINEERS _SFEdALZNGIN- WAI RSUPPLY, STORAGE, DISTNDUMIN&TREATMENENT �archse,bR ,,, mepprutw.a armednv arnag edvueamw sop' 10 callial or turviuE ever 0001 ImTl ala6nl FN^IWalerz6u Peter M. Beckerman, Town Attorney for Several Towns in Central Maine and Beyond 17 Years Municipal Legal Experience Including MMA Staff Attorney 1976-78 with Successful Major Municipal Litigation and Law Court Appeals Ustrad b, Larul Use Enforcement, Civil Rights Defense, Tat Used and Tat Wluofmns. General Assistance. Labor, Schools, Communtry Development, Building Construction, Contracts. Ransil Planning lbatls, Boards of Apparel lubgrafions, State Boards, Planning Commissions. Councils of Govemmerts, Sewer and Wates Districts, Schad Departments Reduced Municipal Rates as Your Aftomev W a Friction of What the Bg Firms Charge No Charge for Initial Consultation Call 873-1900 9 Getchell St., Waterville, ME 04901 RATE COMPARISON CHART BuiyFamilY Curren Sept 93 Differential Premium Current Sets. '93 04ferenGal P,i®¢ de MI needs appears ones o" AN natural"More one Assess van BroMsul Basis Epugnvll Is Winner wIM Sane Oma of mems anal repurtep W Oft M, use, At mos wpae eanau:a toes.nere apwlar ee_ A reaer m prone eon aneoreAme manes are sari l,pm sebme, ea.lw. 5g enatunrel is now awriable on an a Is area on's at a p,mmtimal tau As a Amlwp 9me. NtlupessWeSCnannN. .mmtm 54.1_ 5581 RarestPesti _39.95 _.. . m S995—. Ea.ta $IB.H FamYV C¢de $12D) I spmlSCFannA Ex1.95 S U 5 Data -- TOTAL 5aus —E 385 Aetl,esu'WeWRoxwllnrem 5595 FREE FREE —55.951 E9.W IPaaU $2CBIlu,l'muSMMp1 ZSI Refol&oium p"Illy Feeb,pmllvm plwremrNrg WdllanLoulle¢ _ S J.W'ea59 sea Premium Current Sets. '93 04ferenGal P,i®¢ de MI needs appears ones o" AN natural"More one Assess van BroMsul Basis Epugnvll Is Winner wIM Sane Oma of mems anal repurtep W Oft M, use, At mos wpae eanau:a toes.nere apwlar ee_ A reaer m prone eon aneoreAme manes are sari l,pm sebme, ea.lw. 5g enatunrel is now awriable on an a Is area on's at a p,mmtimal tau As a Amlwp 9me. NtlupessWeSCnannN. .mmtm CABLE T.V. MEGOTIATIBG COMMITTEE Augnet 9, 1993 Old Town Community Center Present: David Cole, Old Town Erik Stumpfel, Bangor Cliff Barker, Lincoln George McDonald, Holden Candy Guerrette, Oxrington Marie Baker, Hampden Scott Thomas, Orono Gerry Kempen, Orono Harold Parks, Brewer Bruce Locke, Milford Fred Breslin, Searsport Scott M. Tilton, Winterport Dana Reed, Bar Harbor Gary Dorman, Corinna Virginia Fortier, Old Town David Cole noted that he had heard from Bucksport and Dexter with both expressing interest in joining the Committee. _ I. Welcome and Background: David Cole welcomed everybody and presented a brief history of the prior committee and its success in negotiating a five year franchise. It was pointed out that Charlie Woodard, the consultant who negotiated for the committee last time, is no longer available and that whoever is obtained would probably cast more money. II. Groundrules: David Cole went over the groundrules that were used last time and that would be used this time. They were as follows: 1. Each community, regardless of size, gets one vote. 2. All communities share equally in the cost, regard- less of size. 3. A community may withdraw at any time, but must pay its share of the costs that have been incurred at the time of their withdrawal. III. Discussion: All participants expressed interest in joint negotiations. Dave Cole would explore the availability of consultants and would call another meeting when a consultant had been contacted. Adjourned, David O. Cole, Secretary Pro Tem Cablevision Systems Corporation - Summary of Financial Condition Per 1992 Consolidated Annual Report Net revenues (1992) + $ 572.5 million Operating expenses 324.8 million Operating cash flow + 247.7 million* Depreciation c amortization - 168.5 million Operating profit + 79.1 million Net interest expense - 193.4 million Other expenses and loss reserves (net) - 136.3 million NET LOSS (1992) - $ 250.5 million* Corporate net worth (12/31/92) < 750 million> Accrued stockholders, deficiency <1.25 billion> Total debt < 2.0 billion> The 1992 report also indicates that Cablevision Systems Corporation is currently being audited by the IRS on its corporate tax returns from 1985 forward, with significant proposed adjustments. *Figures are rounded A Newsletter For Cable Franchising Authoridtaw-.., .. SPECIAL EDITION A Publication of Wilkes, Artist Hedrick&Lane "MayI lem i � j°43 `r A lumber of a0wnaen haw Ingoi,ed we to hoe eu r Im Ram an wane iu rhe fir"hise NR®tim PmeuT We here derelwped fn aehise e tifli beep If wemus asks ere diseased cad paired cele. Anmaa mleresw in wee may ran the follnnng .e munawm uranin lay came. Rama L Wawdaonh Rnhen hs Cult/ SPECIAL MEMO EDITION THE FCC RATE ORDER: OBTAINING FCC CERTIFICATION FOR LOCAL FRANCHISING AUTHORITIES — WHAT TO DO AND HOW TO DO IT FCC has now issued its 450 all other cable rata will be merely not file a form, in which The page Order governing, among regulated by the FCC or les =a the basic rate will be left other Wings, rate regulation by local ratureguland. A standard FCC umesulaw. if no tartifi®tion butchering authorities Of the so wtificarion filing form has request Is filed, We FCC will maid cable basic tier tate. the been adopted and as a not step in and take regular quarterly edition of Cable conventicle W our mders we jurisdiction over basic rales ntfa Watch will tancentam on the hare attached a sample copy of methodology by which local that tams (FCC Farm 328) to in The xnification form requires amhordi6 ren review bale tier rates this memo. (Please nae that the authority to certify that (a) and order Inldows and refunds if FCC Form 328 has not yet Its regulations are (or within appropriate. This Special Memo been officially approval by the 120 days of wnifiration will Edition will focus on the FCC Federal Office of Management be) consistent wiN the rate unification process by which Ionil and Budget but it will regulations adopted by the Iranchuing authorities an perfect undoubtedly be approved by FCC for the basic sena« tier, Neirjurisdictional powttm regulate OMB within the next few (b) it has the legal authority to basic tier sebum rates. weeks.) adopt, and the personnel to administer such regulations; ft) The highlights of the FCCY • Local authorities are not its prwzdural rules provide (or tsnifcation procedure art: required to regulate basic able within 120 days of cenifiation tier rates and, hence, are not will provide) an opportunity for as Local authorities wishing to requiredmfileanyartifrmtion consideration of the views of regulate basic tier sconce rale request if the authority doescoquet ponces; and (d) it must request FCCcenifiation: not wish to regulate, it new does not dispute the WILRES, MTI$ XE0RICK 4 I E, Choa,!J WIdooda tiC I Felnn v,gmkI Its McM.m I Aaa.yolle. presumption that cable comma in its franchise area are not subject to'efiectives compenumi. All of these reprociou Drs are made by concocting a simple "yes - no'format. • If the Ideal authority wisbee basic aces be required, but cannot certify that It has the legal ambonty to do it may still file me form , along with a request a$ktugthe FCCroukejuretiction. Therequatmust include a smmme d detailing the nature Of the legal infirmity in there circumstances, the FCC will take jurisdiction and become the regulatory authority for the basic tier rate until the local government senores such authority and again seeks certification. • If the authority course t0 regulate but believes that it lacks the financial resources to do 50, it may file the form, staring that it lacks the financial resources to regulate and formally mandating the Commission to do so The request must demonstrate why the proseds of the franchise tea which the authority collects cannot be died to Paver the cost of rate regulation. The Commission operates on a rebuttable presumption that franchising authorities receive franchise fees sufficient for their regulatory purposes. The demonstration must include a detailed exploration of the authoritve eeiuing reguutory program and why the fust are Insufficient if the Commission determines that the franchise fees cannot ressonaddi be executed to cover me eating regulatory program plus me cost of basic tier regulation, then the FCC will assume jurisdiction. • Franchising authorities may file the FCC mrtifianon Form 328 starting 30 days after publication of the Commission's rate regulation Order in the Federal Register. Publication will probably Wke place in mid - Iodate May to that authorities an begin to file certifications in late June. A ropy of the certification form most also be served on cable companies in the franchise area by fust class mail on or before the day me form is fled at the Commission and the authority must s0 certify on Form 328, The form most be filed either by registered mail, return receipt_ requested, or by hand delivery to the FCC in Washington, D.C. (N which case the filing dam will be comped on a copy preumed to the FCC for that propose). The file date n the return troops of by -hand stamp is important because it beym the statutory countdown for Commission approval of certification. • The carti0ntion will be automatically effective 30 daK after the filing date Offices; the Commission affirmatively reject the filing within that 30-dav period as Imafficiatt. If the FCC disapproves the examination because the authority backs legal authority to regulate, rti then the FCC will exese ratemaking authority until the mandating authority qualifies, a the disapproval stems from the fad that the ammonite will not have is place a regulation within 120 days stating that its regulations will be wnwtmnt with the FCC's regulations, the FCC will automatically assume mrie iction. If the defect grins because the authority will not within 120 days have rules providing for participation by interested porous, the Commission will allow a reasonable time to care the heard but if it is not contented, will take jurisdiction. • A cable system cannot itself stop the certification from becoming effective Itr only racourse Is to me either a petition for reconsideration after the effectiveve cetfinkiniondata within me normal Commission Gmehume for l4tig suer petiti ans, or a petition for revoccation therenher. If It files a petition for reconsideration urging that fares •ertecia mpe othlan,'then the certification is automatically stayed until the 'ertetlme competition' issue is resolved. Cable systems filing frivolous pensions for reconsideration solely for purposes of obtaining the automadc stay will be subject to Ones and forfeitures. If a system files a petition for reconsideration on gonads other than bffcative cumpetitiori there is no automatic nay of ¢ttifcation but the syatem Can request a any. After the canifiation becomes effective (and the time for filing petitions for usidention bas expired), a cable system may still file a petition to revoke the artifiation. However, in Ma ase, even if the grounds for revocation is the centered of affbuve competition, mere is no automatic stay. • The FCC will not notify the authority that its commission request has become effective. The authority must itself track the 30-tlay period and, upon its expiration, note the effective date of that certlfimtion. The effective date is important not only bemuse it signifies Commission approved Of the confession request, but also received it begins a 120. day period during which the romantics must have to place (a) lutes wasu¢nt with those adopted by the Commission with respect to basic tier regulation, and W ILM A itDS. HEDRIC% & IANE, wad'O d vi'd,seDc. • Fahfevarlia • BaMW. MCNIaM • pMapla, MaMaM (b) roles which give interested parties a Pasionaria Opportunity to mmment during the rate regulation preczcs. phase Wee the two items which the authority agreed to Implement N its Carlifiat]on request. Eben though the Commission may have Oppressed the certification request, nevertheless, the anireauan does not become furry inflective until these two steps have been taken. • The FCC will permit, but not Terms, joint certification by different fembile areas for communities serve] by Me mine system, and for communities in different minchue mass served by Nfkrsnt systema • Once We authority has been certified, and after it has adopted the appropriate cars, It most then notify all cable operators in Ne inswide area that these requirements have been met and that the authmity. tenda to regulate basic servi« rasesnes is the ail whin brings the system under rate regulatory lu is - diction. There is no specific FCC form for such notification. The cable operator then has 30 class from reeeipt of such instruction On either (a) file its bask mm schedWe with the real authority, using FCC Form 393, or M) if timely, his a petition for econsWemtion of the satisfaction. Form 393 Is a rather complicated form on which the able system must calculate its busk into for cable service and for regulated equipment used with that service. FCC Form 393 air form the basic document in cable tier rete regulation. The mechanics of this document(and Me regulatory steps which the authority an into with respect to it) will be discussed more billy in the regular quarterly edition of this newsletter. N respome to requests from subscribers, our law firm would be pleased to provide the following FCC certification service package lot low] franchising audmr]tms. The serria package instance: Pmveieg fancer ln8 authorities with Ne FCC anrfirsdon form (FCC Form 328) and tevtewin8 Ne eawted form for completeness and accuracy. Hand filing the rerrifiatiov room With Me FCC in Washingrom D.C., obtaining the datenmmped proof of filing and tacking the 30.tley certification filing peried. .- Notifying heal authorities of the effective dam of Commission certification approval. Reviewin8 relevant french ding authority inco ea, ordinances or regulation t determine compliance with the Commission's certification requiremems (i.e., adoption of rvks mruonsat with the Commi esioe's rate Cotler add rola providing for participation by the public in the rate review process). Reviewing and advising concerning the required eotifiatum to local cable systems, eceipt of W Wch notification will Subject the cable system to the amhorhy'srate regulatory jurutlktwn. nese mrvilu will be rennases fora octal pore of 5325, Jim oulof-pocket mailing and duplicating corm She price air not include any matters Muscle of those listed, or any matter arWng from requests by the authority for the Commission to take Jurisdiction or from any Commission request for additional information, or from the riling of any petition for oemnidention andlor revocation of rertifiation. We will, of course, be gleauA to provi le legal services with respect W these latter maturs, and with respect to any Lues mnmming calculation of reasonable Hees, rellba its, refunds, etc. at normal hourly rates. My authority interared w throe services may all Me following at 2M-652-0800; Mason lay Caynea Rammy L Woodworth Rouen M. Guns W ILM. stills, MEDIUM 6 LN1E. Chillies www'sucry D'a 0 FiRq Vtryniv • 9nheYa MadbW • Mualtliy Wolms PARKS AND RECREATION ADVISORY BOARD MINUTES AUGUST 2, 1993 PRESENT: Joe Bartek, Gerry Halkett, Richard Laferte, William Shubert GUEST: Jane Real STAFF: Craig Orff, Elizabeth Glanville The only item remaining in the club house renovation project is the.. awning over the outdoor dining deck. The - purchasing department is currently reviewing the specifications. The number of rounds on both the 9 -hole and 18 -hole course are lower than last year at this time, but the income is higher. . ADOPT -A -PARK We have sent out about 180 letters to Bangor businesses and civic groups explaining the adopt -a -park program and asking them to consider 'adopting' one of the city parks. We have received numerous positive comments about the program. Once again there will be a full day of activities at Cascade Park on Labor Day. We will be participating along with many other groups and organizations. The schedule of events for the celebration begins at 10:00 A.M. and concludes at 6:00 P.M. , ( OVER PLEASE ) IV. FAIRMOVNT PARK A crew from the public works department is currently finishing up some odds add ends at Fairmount Park. They e putting in a barrier around the new playground equipment, installing new walkways and landscaping portions of the park. V. UPCOMING EVENTS - Labor Day Celebration at Cascade Park: Sept. 6 - Labor Day Road Race: Sept. 6 - Labor Day Softball Tournament: Sept. 4, 5, 6 - Fall Youth Soccer: season begins Sept. 11 The neat meeting of the Advisory Board will be on MONDAY, SEPTNMBER 13 (September 6 is Labor Day) at 6:00 P.H. at our office at the Bangor Armory.