ADELPHIA UNDER CITY PRESSURE COMMUNICATIONS FIRM PRESSED TO PAY FEES.

Byline: Rick Orlov Staff Writer

Two Los Angeles officials stepped up the pressure Friday on Adelphia Communications to pay past-due franchise fees of more than $3 million and called for it to provide free service to customers for failing to make upgrades.

City Attorney Rocky Delgadillo and Councilman Jack Weiss said they will continue to push for improvements in service by the financially strapped firm that provides cable service to 250,000 homes in Los Angeles or face the loss of its franchise in the city.

``We will not stand by and see a threat to cable service to our residents,'' Delgadillo said, adding he will be meeting with Adelphia officials next week to press his demands.

``At a time when Adelphia was buying a hockey team and golf course, consumers were being denied Internet and broadband services that were promised. They will either provide the high-quality service our citizens have a right to expect or we will recommend they no longer do business here.''

Adelphia spokeswoman Lisa Carparelli said the firm's new chief executive, Erkie Kailbourne, will be coming to Los Angeles next week to discuss the company's plans.

``Our trucks are rolling and Mr. Kailbourne looks forward to talking with the city about all the issues,'' Carparelli said. ``We are interested in ensuring there is high-quality service in Los Angeles.''

In the past, the company has said it plans to make all its franchise payments and proceed with work to upgrade its service level.

Adelphia earlier this year filed for bankruptcy protection under Chapter 11 provisions as it received a $1.5 billion loan to continue operations. There have been reports that Microsoft billionaire Paul Allen among others were interested in Adelphia's operations in Los Angeles.

The company is the city's second-largest cable provider and covers some of the most lucrative areas of the city including the south San Fernando Valley and West Los Angeles.

Its franchise agreement is up for renewal on Aug. 2 when the city can dictate new terms or seek a new operator.

The City Hall news conference drew criticism from another city official.

``We are in talks now and they are divulging some of the information that was confidential,'' said Councilman Mark Ridley-Thomas, who chairs the council committee overseeing cable franchise agreements.

``We are all concerned about the situation with Adelphia and I am going to look out for the city's best interests. I'm not sure it helps the city to conduct negotiations at a news conference.''

Liza Lowery, general manager of the city's Information Technology Agency, said a meeting with Adelphia on Friday was canceled as a result of the news conference.

``Our concern is that we be able to negotiate in a way that both sides have confidence,'' Lowery said. ``What happened was they disclosed some of the proposals we have been negotiating in good faith.''

Lowery said Adelphia long has had a troubled complaint history with the city, but that it hasn't grown worse in recent months as a result of the company's financial problems.

Also, she said a city audit uncovered the past due payments from 1996 and 1999, and the city is negotiating with the firm to have the payments made.

Aides to Delgadillo said he believed disclosure of the city's negotiating position would not hurt talks with the company.

``The interest of the City Attorney is to let people know what is going on and that their interests are being looked after,'' the official said.

Weiss said his concern is the level of service to customers, most of whom live within his district.

``We have seen a dramatic increase in the number of complaints over cable service,'' Weiss said.

In addition to the back payments, Delgadillo said he wants to make sure the company makes its present $1.7 million franchise payment and develops a work plan to provide service upgrades.

If it fails to meet those deadlines, Delgadillo said he wants the company to provide a free month's service - a $30 value - to all customers living in those areas. Also, he said the company should provide a month's service to customers for the failure to provide past upgrades or if service is out for a four-hour period.

Lowery said the city has had several meetings with Adelphia over the renewal of its franchise, but that no agreement has been reached yet.

``We're not at the point where we are committed to extending their franchise,'' Lowery said. ``We want to see where they are at in providing service to our residents. We are here to protect our residents.''

As for the money Adelphia owes the city, Lowery said it was based on an initial audit that was being reviewed to determine the amount owed.

``There needs to be a more thorough look at documents and it's a problematic issue,'' Lowery said. ``We are continuing to look at it.''

There were no records available to determine if any of the other franchise operators were late in payments.