07-22-1992 Council Agenda - Laserfiche WebLink

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BERNICK AND LIFSON A PROFESSIONAL ASSOCIATION management of Heritage Communications of Des Moines, Iowa. Heritage was a highly regarded multiple system operator. Developed primarily through acquisitions of existing cable systems, Heritage developed a reputation in the industry for quality technical performance and high levels of customer service and satisfaction. Although such experience does not necessarily translate into any guarantee of performance by the new owners, the representations of the principles of the proposed new owners before the various city councils and cable commissions, and the written documentation provided by the proposed new owners indicate a probability that the cities can expect a quality cable operation with experienced individuals making the ultimate management decisions. Further, the present local management has been retained for the time being, and for the most part the cities have experienced quality local management and technical supervision of the existing cable systems over the past years of Hauser ownership. The prospective owners have represented that the quality of past management operations will be maintained. As stated earlier, the technical analysis of the system was conducted by CSC. The Commission determined early on that it would be necessary not only to review the technical ability of the proposed owners, but that an analysis of the technical performance of the existing system to determine Franchise compliance would be necessary prior to any recommendation regarding the proposed transfer. The age of the system, alone, warranted such an analysis of the existing system. CSC conducted an extensive analysis of the cable system. A review was made of the technical operating conditions of the system at the company's headends and microwave and fiber optic hubsites, thirty (30) subscriber network test points, fourteen (14) institutional network test points, and multiple points located throughout the communities for evaluating the physical condition of the company's plant. The actual physical technical analysis was supplemented by numerous personal contacts from CSC to the company and the Commission. An initial report was issued by CSC and Jonathan Kramer, principal of CSC, participated in an oral presentation of the technical analysis. The oral presentation was open to all policy makers and the general public and was taped for future review. The initial report of CSC is attached hereto as Exhibit B and made a part hereof. The company responded in writing regarding 6 Page 78