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361 Councilmember Mercer inquired how much this new equipment was going to cost the subscribers. Danny Radcliff, Senior Vice President for the West Coast indicated this was an investment for the whole Valley and is a long-term program, not to be recovered on the short term. Councilmember Brandes raised the point that the Scientific-Atlanta 6700 system was supposed to be "state of the art" equipment and was in operation at the same time as the Z-tac. Why was it used instead of the Z-tac. Mr. Joe Van Loen, Vice President of Viacom, discussed the pros and cons of the two systems and explained their reasons for using the SA systems, one of which was that it was supposed to be secure against tampering. Councilmember Brandes inquired about the leakage problems and when they were first discovered. Discussion then ensued regarding the problems with the system and the Hamlin converters. Also consideration was given to the possibility of a rate increase, which Viacom assured Council would not happen in the near future. Brian Swift then addressed the Council regarding information he had obtained at a recent technical show in Los Angeles and reviewed his staff report (82:478) to Council. Mr. Swift felt there were basically four issues to be addressed: (1) Whether or not Viacom will affirmatively replace the Hamlin converters or whether they will only do it on request; (2) the schedule for the transition period; (3) will parental control devices be available on request or built into the Z-tac and made available to everyone who has the premium channels; and (4) the methods for protecting subscribers who are currently protected by negative traps, which will not prevent Escapade from coming through on the Zenith system. Mr. Van Loen indicated that during the transition period Escapade can be broadcast on the A-2 channel, which cannot be received by the Hamlin converters, but that this is a temporary measure because the A-2 is a shared channel with aeronautical radio and if the local airport chose to use this channel, Viacom would be forced to vacate it. There was more discussion regarding the technical remedies and the use of parental control devices. Mayor Butler then opened the public hearing, but stressed that the Council was only concerned at this time with the technical problems, not the programming. Beth Grant DeRoos, 8467 Deer Vale Road, Dublin, spoke in support of Viacom. She challenged the petition which was presented to them, claiming that most were not subscribers and in fact were outside the service area. She presented a written statement to the Council along with correspondence signed by Ed Asner along with copies of other correspondence she has received regarding this controversial issue. She closed by indicating the possibility of a class action against Mrs. Severin, the Advisory Council members and the City Council. Charlotte Severin, 4513 Mirador Drive, Pleasanton, then presented her written report to the Council detailing the leakage problem and the excessive amount of time Viacom is taking to solve the problem. She also mentioned the parental control devices and Viacom's failure to make them widely available. Mrs. Severin mentioned the Z-tac system and inquired as to whether it would really solve all the problems, if so and if it is installed in a timely fashion, she congratulated Viacom on their cooperation. Mr. Larry Souza, 6322 Alisal Street, indicated he felt Viacom was not responsive to citizen complaints and related his problem in getting them to stop the leakage into his home. Mr. Ed Ruchette, 3436 Windsor Court, told Council he had purchased a new television with direct jack input, meaning he can receive cable television without the box and that he is receiving Escapade quite clearly. He indicated any solution of the control of Escapade using a device on the converter box would not solve his problem. 4. 11/23/82