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OUTLINE OF THE CABLE FRANCHISE RENEWAL PROCESS The member cities' cable franchise renewal is subject to the renewal provisions of the federal Cable Act, 47 U.S.c. g 546, which sets out two ways of aniving at a renewal decision: the formal and the informal processes. · A city and a cable operator may agree on a renewal franchise through informal negotiations, pursuant to 47 U.S.C. ~ 546(h). · If a city and the cable operator are unable to agree on renewal terms through negotiation, and the operator has properly invoked the formal renewal process under 47 U.S.c. ~ 546(a), the only way that the city may deny renewal is to take the following steps: ~ The North Metro Telecommunications Commission (the "Commission"), on behalf of the member cities, conducts an "ascertainment" process to develop facts about AT&T Broadband's past performance and the Commission's and member cities' future cable-related needs and interests. ~ Once the Commission completes the ascertainment process, it issues a request for renewal proposal to AT&T Broadband. ~ AT&T Broadband submits a proposal for renewal (either on its own initiative or at the request of the Commission). ~ The Commission must provide public notice of AT&T Broadband's renewal proposal. ~ The Commission, on behalf ofthe member cities, has four months from submission of AT&T Broadband's proposal in which to renew the franchise or issue a preliminary denial of renewal. ~ If the Commission issues a preliminary denial, it begins a formal administrative proceeding to consider whether the franchise should be renewed, basing its decision on the four factors listed on page 2 below. ~ At the end of the administrative proceeding, the Commission, on behalf of the member cities, issues a written decision granting or denying the renewal proposal, based on the record and stating its reasons. P.18