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STATUS REPORT -- RENEWAL OF CABLEVISION FRANCHISE AGREEMENT I E Current Franchise Agreement Expires March 3, 1995 RENEWAL OF CABLEVISION FRANCHISE: TWO METHODS OF PROCEEDING 1. Formal Proceedings: As provided for under the Cable Communications Act. Takes many months to initiate and complete and the failure to complete them properly would put the City at some legal risk. The formal proceedings require two public hearings where the Cable Operator is evaluated based on Cable Related Community needs. The first hearing addresses Cable Related Community needs and offers the Public and the Cable Operator a chance to comment on issues of this nature. The performance of the operator is evaluated at this meeting. The Cable Operator can only be evaluated in accordance to the provisions set out in the current Franchise Agreement between the Operator and the City. The second hearing is where the decision is made whether or not: to renew the Franchise Agreement. A decision not to renew the agreement must be supported by evidence that the operator was not living up to the provisions set out in the current Franchise Agreement. 2. Informal Renewal Procedures: As provided for under the Cable Communications Act. --Cablevision and Colton (under advice of the City Attorney) have agreed that the parties will proceed to _negotiate informally for a period up to and including one year before franchise expiration, March 3, 1994. If at that time, if informal negotiations have not resulted in a new franchise, then either the City or Cablevision may invoke the formal renewal proceedings. By providing that formal proceedings must begin no later than one year prior to the franchise's expiration, the City will have sufficient time to fulfill its obligations.