HomeMy WebLinkAboutAGENDA REPORT 2007 0321 CC REG ITEM 09AMOORPARK CITY COUNCIL
AGENDA REPORT
To: Honorable City Council
From: John Brand, Senior Management Analyst
Date: March 15, 2007 (CC Meeting of 03/21/2007)
ITEM 9. A.
CITY OF MOORPARK, CALIFORNIA
City Council Meeting
of 3- oZl -o?OO7
ACYtON;
I 7
e..
Subject: Consider Time Warner Cable TV Customer Service Performance
SUMMARY
On March 7, the Council directed the cable TV ad hoc committee (Mayor Pro Tern
Millhouse and Councilmember Parvin) to schedule a meeting with staff from Time Warner
Cable that has technical expertise in call center operations and equipment, and directed
staff to track actual telephone response times from Time Warner. The Council continued
consideration of Time Warner Cable TV Customer Service Performance until March 21.
DISCUSSION
On March 14, the cable TV ad hoc committee met with Time Warner Cable representatives
Patricia Fregoso -Cox, Vice President, Community Affairs North Division; Sagi Shimonvitz,
Director of Customer Care; and Coby King, a communications and public relations
consultant to Time Warner Cable.
The discussion with Time Warner included a detailed review of the state of customer
service management since Time Warner's merger with Adelphia and Comcast in August
2006. Particular focus was on Time Warner's efforts to overcome the considerable
obstacles it has encountered due to the three different systems for billing, product line up,
corporate culture, policies, procedures, and customer service. Time Warner indicated that
it continues to hire and train new Customer Service Representatives, and while significant
improvements may be noticeable as soon as mid - April, it may be the end of the year
before the company is able to return to normal operating conditions and achieve
compliance with the thirty- second rule. Generally, the thirty- second rule states that a
customer service call will be answered within thirty seconds, and that no more than an
additional thirty- seconds will elapse until the customer is connected to a Customer Service
Representative. This standard is to be met 90% of the time, measured over a period of
three consecutive months.
At the meeting, the Time Warner representatives stated that the company's priority is to
remedy this and related issues, and consequently it may not be able to explore the
technical challenges involved in producing Moorpark- specific reports until after those
000001.
Honorable City Council
March 21, 2007
Page 2
issues are resolved. The committee discussed the relative merits of using regional
statistics for franchise compliance purposes.
The ad hoc committee recommendation is that the Council consider initiating the procedure
for remedying franchise violations as stipulated in the Franchise Agreement and the
Municipal Code.
Under separate cover, staff has provided
compliance enforcement process, including
required, verification of compliance, uses
remedying franchise violations.
Council with a procedural overview of the
operational standards, records and reports
of the Security Fund, and procedures for
Staff will have a verbal report on the results of its monitoring of the response times during
telephone calls placed to the Time Warner Cable customer service center.
STAFF RECOMMENDATION
Direct Staff as Deemed Appropriate.
Attachments
Attachment 1:
Time Warner regional report, August 2006 — January 2007
Attachment 2:
March 5 letter from Patricia Fregoso -Cox
Attachment 3:
March 7 agenda report
Attachment 4:
February 23 letter from Assistant City Manager Hugh Riley
Attachment 5:
Resolution 2007 -567
Attachment 6:
February 21 agenda report
000002
Time Warner Cable
Aug -06 Sep-06 Oct -06 Nov -06 Dec -06 Jan -07
Repair Log*
Headend
0
1
0
0
0
0
Transportion
0
0
0
4
0
0
Distribution
0
2
0
0
2
2
Drop
18
7
15
16
14
14
Customer Premise
155
171
180
199
236
236
Administrative
0
0
0
0
0
0
Total Service Calls
173
181
195
219
252
252
Less Customer Calls
-155
-171
-180
-199
-236
-236
% Calls /Customers
89.6%
94.5%
0.0%
90.9%
93.7%
93.7%
Total Repair Calls
18
10
15
20
16
16
% Calls /Repair
10.4%
5.5%
0.0%
9.1%
6.3%
6.3%
Outage Log
Total Outages
0
0
0
2
1
3
Total Minutes
0
0
0
95150"
565
250
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Telephone Log*
Total Calls 956,157 1,683,023 2,154,234 1,748,276
1,404,961
1,641,720
% Busy Signals Received 2.6% 4.0% 2.6% 2.3%
1.5%
2.6%
% Calls Answered in 30 Sec 51.5% 57.6% 44.2% 48.8%
60.7%
50.8%
Total Calls Abandoned 70,346 60,568 236,825 466,718
298,393
427,302
% calls Abandoned 7.4% 3.6% 11.0% 26.7%
21.2%
26.0%
**This was a major outage due to damaged fiber optic lines that had to be respliced.
C
*NOTE: Due to the integration of Adelphia and Time Warner's call centers, the August telephone log reflects only partial information.
C
C
3/14/2007
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Attachment 2
'1P CABLE
March 5, 2007
Hugh R. Riley
Assistant City Manager
City of Moorpark
799 Moorpark Ave.
Moorpark CA 93021
RE: Response to Letter and Resolution
Dear Mr. Riley:
I am in receipt of your letter dated February 23, 2007 and Moorpark City Council
Resolution 2007 -2567 regarding Time Warner Cable. I appreciate the opportunity to
respond to your letter and the resolution. I want to also take this opportunity to formally
request a meeting with the City Council's Ad Hoc Committee on Cable Service. As you and
I have discussed before, I believe such a meeting would be very productive, and I hope it
can be scheduled as soon as possible.
To assist Local Franchising Authorities understand the big picture of our operations, we
provide monthly reports with regional statistics. We are happy to add the City of Moorpark
to that distribution list. The City will begin receiving this monthly report within 45 days.
You have also asked for reports that provide a Repair Log, Outage Log, and Telephone Log
for Moorpark residents specifically. TWC is able to provide "system specific" data for
technical and outage repair information, but at this time we are not able of provide
Moorpark specific telephone statistics. However, we are looking into the possibility of
providing such reports in the future. We will report back to you once we have determined
the feasibility of providing such "Moorpark- specific" reports.
Please do not hesitate to contact me at 661- 265 -6697 if you have any questions or concerns.
Once again, I look forward to meeting with the Ad Hoc committee to discuss these issues.
Sincerely,
Patricia Fregoso -Cox
Vice President, North Division
Time Warner Cable
cc: Steven Kueny, City Manager
Debi Picciolo, President, North Division
Coby King, Esq.
000004
Attachment 3
MOORPARK CITY COUNCIL
AGENDA REPORT
To: Honorable City Council
From: John Brand, Senior Management Analyst,
Date: February 28, 2007 (CC Meeting of 03/07/2007)
Subject: Consider Time Warner Cable TV Customer Service Performance
SUMMARY
9.A.
On February 21, the Council considered a report from the Cable TV ad hoc committee
(Mayor Pro Tern Millhouse and Councilmember Parvin) regarding remedies to Time
Warner Cable's customer service performance. The Council approved Resolution 2007-
2567 finding that in order to ensure compliance with the customer service standards of its
franchise with the City, it is necessary for Time Warner Cable to take steps to acquire and
install equipment which can report on telephone line(s) usage by Moorpark residents
specifically, including but not limited to, a Repair Log, Outage Log, and Telephone Log
consistent with, but distinct from, regional reports provided to other franchising authorities
in the Los Angeles and Ventura County operational area.
A copy of the resolution, along with the attached cover letter, were transmitted to Ms.
Patricia Fregoso-Cox, Vice President- Community Affairs, North Division, of Time Warner
Cable on February 23. The letter summarizes the Council's discussion and action, asked
for a response from the company by March 5, and invited a Time Warner Cable employee
to attend the Council's March 7 meeting.
STAFF RECOMMENDATION
Direct Staff as Deemed Appropriate.
Attachment: Letter to Time Warner Cable
000005
Attachment 4
MOORPARK
1 799 Moorpark Avenue Moorpark, California 93021 (805) 517 -6200
February 23, 2007
Patricia Fregoso -Cox
Vice President- Community Affairs
North Division
Time Warner Cable
41551 Tenth St. West
Palmdale, CA 93551
RE: Customer Service Standards - Moorpark
Dear Patricia:
As you know, the City Council of the City of Moorpark has been concerned about
complaints from Moorpark Cable Customers concerning the quality of service
being provided by Time Warner since the initiation of channel realignments,
internet conversions and other actions associated with Time Warner's takeover
of the Adelphia Cable TV System in Moorpark.
Of particular concern has been the length of waiting time required to reach a
customer care representative. It is our understanding that Time Warner is able to
generate call center performance statistics only on a regional basis, and that with
the current call monitoring system there is no opportunity to measure call center
performance specifically for Moorpark Subscribers.
In response to these frequent complaints, the City Council has adopted the
attached Resolution calling for the submittal of monthly reports on telephone
line(s) usage specifically by- Moorpark Subscribers, including but not limited to
Repair Log, Outage Log, and Telephone Log consistent with, but distinct from the
regional reports that are already available. If possible, reports should include
repeat call statistics as well.
The City Council has asked that Time Warner respond to this request no later
than March 5, 2007, and has directed City Staff to place the matter on their
meeting agenda for their regular meeting of March 7, 2007.
000006 40
PATRICK HUNTER KEITH F. MILLHOUSE ROSEANN MIKOS JANICE S. PARVIN MARK VAN DAM
Mayor Mayor Pro Tern Councilmember Councilmember CouncUmember
Patricia Fregoso -Cox
Time Warner Cable
February 23, 2007
Page 2
Your assistance on providing a timely response will be most appreciated.
Sincerely,
Hugh'-R.4iley
Assistant City Manager
cc: Honorable Mayor and City Council
Steven Kueny, City Manager
Attachment: City of Moorpark Resolution
No. 2007 -2567
0000U'i'
Attachment 5
RESOLUTION NO. 2007 -2567
A RESOLUTION OF THE CITY COUNCIL OF THE CITY ,OF
MOORPARK, CALIFORNIA, TO REQUIRE TIME WARNER
CABLE TO MONITOR ITS CABLE FRANCHISE CUSTOMER
SERVICE, TELEPHONE ANSWERING TIMES, AND
OUTAGES AND TO PROVIDE REGULAR REPORTS TO THE
CITY
WHEREAS, the City of Moorpark currently has standards . relating to cable
television customer service operational standards that a cable franchise grantee must
meet or exceed; and
WHEREAS, pursuant to Moorpark Municipal Code Section 5.06.810 (c), grantee
shall not be required to acquire equipment or perform surveys to measure compliance
with the telephone answering standards in the code unless a historical record of
complaints indicates a clear failure to comply; and
WHEREAS, for the past several months, the City has received an unusually high
number of complaints about Time Warner Cable's telephone answering wait times, hold
periods, busy signals, service outages, and billing errors; and
WHEREAS, the City Council has determined that it is appropriate to require Time
Warner Cable to acquire equipment to determine compliance with the telephone
answering standards adopted by the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council of the City of Moorpark hereby determines that the
record of complaints received suggests a failure to comply with the City's telephone
answering standards for a cable franchise grantee.
SECTION 2. The City Council of the City of Moorpark finds that in order to
ensure compliance with the customer service standards of its franchise with the City, it
is necessary for Time Warner Cable to take the necessary steps to acquire and install
equipment which can report on telephone line(s) usage by Moorpark residents
specifically, including but not limited to, a Repair Log, Outage Log, and Telephone Log
consistent with, but distinct from, regional reports provided to other franchising
authorities in the Los Angeles and Ventura County operational area.
000008
Resolution No. 2007 -2567
Page 2
SECTION 3. The City Council of the City of Moorpark further finds that in order
to verify compliance with the telephone answer standards adopted by the City, it is
necessary for Time Warner Cable to submit the monthly customer service reports
described in Section 2 to the City Manager and /or a staff designee of the City Manager
SECTION 4. The City
shall cause a certified resolution
PASSED AND ADO
ATTEST:
Mall certi%to the adopt
filed in the dpok of origin
this 21 st day of f ebru
01 -aj�� S. �-�
Deborah S. Traffenstedt, City Clerk
of the resolution and
esolu�fions.
600009
Attachment 6 l i s.M 1 - E-
MOORPARK CITY COUNCIL
AGENDA REPORT
To: Honorable City Council
From: John Brand, Senior Management Analyst
Date: February 14, 2007 (CC Meeting of 02121/2007)
Subject: Consider Resolution to Monitor and Report on Cable TV
Customer Service Performance
SUMMARY
On December 6, 2006, the City Council directed staff to investigate the remedies available
to the City regarding the customer service provisions of the agreement with Time - Warner
Cable Television. Staff was directed to explore the possibility of drawing against the
$25,000 Security Fund letter of credit for violations of the standards of customer service for
Cable TV subscribers. The $25,000 Security Fund might be used to assess liquidated
damages if particular procedures and criteria can be met. Staff was directed to specifically
look at the telephone answer time requirements, as well as other violations of applicable
service standards. The Council also created an ad hoc committee consisting of Mayor Pro
Tem Millhouse and Councilmember Parvin to consider these matters and how the
implementation of AB 2927 (the state "Digital Infrastructure and Video Competition Act Of
2006 ") may affect local government's relationship to cable TV services in general. Staff
was further directed to notify the Ventura Council of Governments of any action taken by
Council.
The ad hoc committee found that certain necessary facts, such as actual telephone
answering performance, could be difficult to document satisfactorily for an assessment to
be upheld. The City could face significant legal expenses, particularly if its liquidated
damages assessment is challenged and overturned. Alternatively, a provision of the
Municipal Code may enable the City to cause Time Warner to acquire equipment to
determine compliance with the telephone answering standards and to submit regular
reports to the City. The committee is forwarding a resolution to the Council for its
consideration for that purpose.
BACKGROUND
As a result of the federal "Cable Television Consumer Protection and Competition Act of
1992" (1992 Cable Act), the Federal Communications Commission (FCC) established
customer service standards for cable TV operators. However, the 1992 Cable Act made
local franchise authorities responsible for enforcing these customer service standards. The
FCC regulations state:
000010
Honorable City Council
February 21, 2007
Page 2
"Under Normal Operating Conditions, the following standards shall
be met by the Franchisee at least ninety (90) percent of the time,
measured quarterly.
(A) Telephone answering time shall not exceed thirty (30) seconds,
and the time to transfer the call to a customer service representative
(including hold time) shall not exceed an additional thirty (30)
seconds.
(B) A customer will receive a busy signal less than three percent
(3 %) of the time."
These standards were incorporated in §5.06.810 of the Moorpark Municipal Code, and
they have been adopted by most local franchising authorities across the nation.
Consequently, there is nothing onerous or excessive about the City's interest in Time
Warner's performance regarding these standards of customer service. The 1992 Cable Act
also gives local franchising authorities the ability to adopt more stringent standards, but the
City's Franchise Agreement stipulates that the franchisee must concur with any changes in
the Municipal Code chapter on Cable Communications.
The Municipal Code and the Franchise Agreement discuss the establishment of a "Security
Fund" in the form of a $25,000 irrevocable letter of credit, those purposes for which the
Security Fund may be assessed, and the procedures for remedying franchise violations.
By about August 2006 the implementation of Time Warner's takeover of the Adelphia cable
franchise in Moorpark began to generate a noticeable increase in customer questions,
concerns and complaints. Many of these calls were directed to the City in its capacity as
the franchise authority. The poor customer service conditions quickly came to the attention
of the City Council, and the Council took action on December 6 to create the ad hoc
committee.
DISCUSSION
On January 17, 2007, the Cable TV ad hoc committee (Mayor Pro Tern Millhouse and
Councilmember Parvin) met and reviewed relevant portions of the Municipal Code, the
Cable TV Franchise Agreement, and customer service standards for Cable TV operations
adopted by other franchising agencies.
A review of the Moorpark Municipal Code and the Franchise Agreement found that while it
may be an applicable and appropriate use of the Security Fund to assess Time Warner for
failure to maintain the agreed upon telephone answering standards, there may be another
way to remedy the problem that would strengthen the City's ability to successfully assess
damages if it subsequently becomes necessary in orderto improve the customer service to
cable subscribers.
000011
Honorable City Council
February 21, 2007
Page 3
Ad Hoc Committee Proposal
The Committee discussed an interim action before considering liquidated damages. This
would be for the Council to consider a resolution requesting Time Warner to document its
telephone answering performance and submit regular reports to the City showing a
summary of its actual response times. The City's Municipal Code anticipates such an
action. MMC Section 5.06.810(C) states:
"Grantee shall not be required to acquire equipment or perform surveys to
measure compliance with the telephone answering standards above unless a
historical record of complaints indicates a clear failure to comply."
A resolution of the Council finding conditions that warrant Time Warner to monitor its call
compliance and send regular reports to the City is not an onerous request. Time Warner
has routinely done this for other franchising authorities.
Should Time Warner not voluntarily utilize telephone answering compliance equipment,
then the City has a lesser standard of evidence to meet to compel the company to do so.
Chapter 5.06.810 of the Code contains operational standards for cable franchise grantees.
Included in this section is the "thirty second" rule discussed above. The Committee found
that Moorpark's customer service standards are the same as the federal standard, and are
much the same as most other local franchising authorities. The subsequent sections of the
Code stipulate the steps for verification of compliance with these standards. "A repeated
and verifiable pattern of noncompliance with the consumer protection standards" that is not
cured within thirty days may be deemed a material breach of the franchise agreement.
A refusal by Time Warner to provide telephone answering compliance equipment is not
expected. It has been made clear to the company that the Moorpark City Council is
seriously concerned about cable TV customer service performance, plus the possibility of
providing such equipment is written into the Municipal Code, Time Warner provides similar
equipment to neighboring franchising authorities, and the City's service standards are
consistent with the standards of other agencies.
Once the telephone answering compliance equipment is installed and reports are provided,
the City could use the evidence Time Warner collects in its call monitoring reports to
substantiate the company's progress (or lack thereof) in answering consumer complaint
calls. If after implementation the Council still believes Time Warner is not satisfactorily
performing then contractual remedies could be pursued. The Cable TV ad hoc Committee
respectfully requests that the Council consider the attached resolution.
STAFF RECOMMENDATION
Adopt Resolution No. 2007 -
Attachments: Draft Resolution
600012