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MOSS & BARNETT A PROFMIONAL AS IAMN Mr. Clyde Gouldman . Page 10 September 23, 1994 CONCLUSION Based on our review of the factors identified by the FCC, we believe the totality of the circumstances indicates that Adelphia intentionally or in effect attempted to evade the FCC's rate regulations by removing 31 channels from regulated tiers of service and placing them in an a la carte format. We therefore recommend the City adopt the resolution, attached as Exhibit 6, determining that Adelphia's collective offering of "a la carte" channels be treated as a regulated tier of service. The resolution identifies findings of fact which parallel the information contained within this letter. Appropriate supporting documentation has been incorporated by reference into the resolution to create a record on which the City's decision is based. Adelphia or any consumer in the City of Charlottesville may make an interlocutory appeal of the City's decision to the FCC within 14 days. Adelphia must provide notice to the City of the decision whether or not to appeal to the FCC within this 14 day time period. If Adelphia appeals the City's decision to the FCC, the time period for City action on Adelphia's Form 1200 and 1205 submission will be tolled until seven days following the commission's decision on the interlocutory appeal. • After you have had an opportunity to review this letter together with its attachments, please feel free to contact me with questions, comments or suggested modifications. I suggest a copy of these documents, once finalized through your office, be forwarded to Adelphia prior to consideration by the City Council so that Adelphia may have an opportunity to raise concerns prior to City Council action. Very truly yours, MOSS S BARNETT A Professional Association T � Brian T. Grogan BTG/slo 799ZBTG Enclosures