2. Alliance for Community Media Conference Cable Franchise Renewal By Michael R. Bradley Bradley & Guzzetta, LLC Phone: (651) 379-0900 July 8, 2005____________________________

3. Franchise Renewal _______________________________ July 8, 2005 Slide # 2 Overview of the Informal Renewal Process Limitations of the Cable Act’s Formal Renewal Process Do Not Apply –No deadlines, except those that may be imposed by state or local law –Renewal may be denied for any reason Any grant or denial of a franchise must be preceded by public notice and opportunity for comment –State and local notice and public meeting requirements must be followed

4. Franchise Renewal _______________________________ July 8, 2005 Slide # 3 Overview of the Informal Renewal Process (Cont’d) Process essentially involves negotiation of a new franchise agreement, based on articulated City needs Terms of a franchise must be agreed to by both parties City police powers and certain other municipal authority may be unilaterally imposed (e.g., penalties, and rate regulation).

5. Franchise Renewal _______________________________ July 8, 2005 Slide # 4 Broad Concerns of Cable Franchising Authorities Current and Future Telecommunications Needs and Interests Public, Educational and Governmental (PEG) Programming Needs

6. Franchise Renewal _______________________________ July 8, 2005 Slide # 5 Broad Concerns of Cable Franchising Authorities (Cont’d) Infrastructure Development Right-of-Way Management Zoning Requirements Facilities Management

7. Franchise Renewal _______________________________ July 8, 2005 Slide # 6 Typical Steps in Connection with the Cable Franchise Renewal Process Conduct a future cable-related needs and interests assessment Meetings with City Officials and Staff Conduct a past performance review –Identify cable operators degree of compliance with current franchise –Possible Franchise Fee Audit

8. Franchise Renewal _______________________________ July 8, 2005 Slide # 7 Typical Steps in Connection with the Cable Franchise Renewal Process (Cont’d) Preliminary Meetings with Cable Operator Technical Evaluation Financial Evaluation Prepare a preliminary draft of the new cable television franchise agreement/ordinance Review any proposal from the cable operator

9. Franchise Renewal _______________________________ July 8, 2005 Slide # 8 Typical Steps in Connection with the Cable Franchise Renewal Process (Cont’d) Public Hearing Negotiations with the cable operator Franchising Authority Approval of Franchise Renewal Timetables to Complete Renewal –Informal Process - approx 12-15 months –Formal Process - time consuming, expensive and very lengthy

10. Franchise Renewal _______________________________ July 8, 2005 Slide # 9 Overall Goals of the Needs Ascertainment Process Identify and Articulate the Community’s Future Cable-Related Needs and Interests Develop Recommendations As to How the Community’s Needs and Interests Can Be Satisfied by company Maximize the City’s Negotiating Leverage with cable company

11. Franchise Renewal _______________________________ July 8, 2005 Slide # 10 Description of Needs Ascertainment Process Survey various City government and educational institutions Hold Focus Group meetings with interested agency officials and staff Pose questions concerning the cable system’s capabilities to cable company

12. Franchise Renewal _______________________________ July 8, 2005 Slide # 11 Description of Needs Ascertainment Process (Cont’d) Analyze responses from City agencies, educational institutions, public and cable company Prepare Findings and Recommendations in a needs assessment report

13. Alliance for Community Media Conference Cable Franchise Renewal By Michael R. Bradley Bradley & Guzzetta, LLC Phone: (651) 379-0900 July 8, 2005____________________________