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2 B. Renewal Proposal. 1. Second stage of the renewal process. A proposal may be submitted upon request of the Commission (on behalf of the member cities) or on AT&T Broadband's initiative. 2. A proposal initiated by the Commission may establish requirements for facilities and equipment that are related to the operation of the cable system, including proposals for an upgrade, PEG equipment or an institutional network, but not for video programming or other information services. 3. The Commission can establish deadlines for submission of a formal proposal. Such deadlines must conform to state and local law and must be communicated to the cable operator in writing. 4. The Commission cannot require submission of a formal proposal prior to the completion of ascertainment hearings and, upon the submission of a formal proposal, must provide prompt notice ofthe proposal. 5. After receipt of a formal proposal, the Commission, on behalf ofthe member cities, must decide to renew or preliminarily deny within four months of receipt of the proposal. C. Administrative Proceeding for Denial. 1. If the renewal proposal is denied, AT &T Broadband can request administrative proceedings, or such proceedings may begin upon the Commission's own initiative. In such an administrative proceeding, AT&T Broadband must be given adequate notice and fair opporttmity for fhll participation, including the right to introduce evidence, to require the production of evidence and to question witnesses. A transcript of the proceedings must be made. 2. If AT&T Broadband believes the Commission (or another hearing examiner) to be unfairly biased, it must raise its objections during the administrative proceeding or waive them. 3. The Commission or the member cities must issue a written decision stating the reasons for denial. 4. The member cities' decision to grant renewal upon terms unacceptable to AT&T Broadband maybe treated as a denial. P.21