ODE45 tolerances in ballode code

I have been studying the ballode code and breaking it down into bits that I understand so I can write an ode code with events myself. One thing that has been bothering me is the choppiness of the solution. Despite setting Abstol and Reltol to 1e-6,1e-9, or even 1e-12 the timestep appears to remain the same. Any ideas? I'm clearly missing something here.

[SL: edited to remove text of ballode.m. Please do not post the entire text of MathWorks functions.]

Edit: the line I changed was the following:

options = odeset('Events',@events,'OutputFcn',@odeplot,'OutputSel',1,'RelTol',1e-12,'AbsTol',1e-12);