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O'CONNOR & HANNAN <br /> ATTORNEYS AT LAW <br /> Steve Sarkozy <br /> April 12, 1990 <br /> Page 2 <br /> During the approval process of the transfer of ownership to <br /> Hauser Communications, Hauser Communications requested the trans- <br /> fer of the community programming function to the Cable <br /> Commission. The Commission refused to entertain any such <br /> dialogue and placed a one year moratorium on any such <br /> discussions. Approximately a year and a half after the transfer <br /> of ownership, Hauser Communications returned with its request to <br /> transfer the community programming function to the Commission and <br /> its Member Cities. The Commission, in its response to Hauser ' s <br /> request, determined that an in-depth study of community <br /> programming in the North Suburban area was required, prior to <br /> negotiations. Mr. Hauser originally proposed $.45 per subscriber <br /> per month and the transfer of the existing equipment. The <br /> Commission refused to enter into negotiations until the <br /> completion of its study. <br /> Paramount in the Commission' s review was the question, <br /> "Should the Commission consider the assumption of the community <br /> programming function, or should the Commission continue to <br /> aggressively administer the performance of the Franchise <br /> Ordinance by Hauser Communications (doing business as Cable TV <br /> North Central)?" This, apparently, is also an important question <br /> to the City of Roseville. <br /> The Commission began an in-depth, two-prong study of <br /> community programming in the North Suburban area. One dimension <br /> of this study was the creation of. a model for community <br /> programming with the consulting help of Anita Benda Stech, the <br /> original consultant who developed the request for proposal for <br /> community programming in the North Suburban area. The second <br /> dimension of the Commission' s study was to conduct an in-depth <br /> analysis of the performance of Cable TV North Central in the <br /> community programming area so as to determine the level of <br /> compliance with the existing Franchise Ordinance. <br /> You have already received the result of the Commission's <br /> study with Ms. Stech. I refer you to that report both as to the <br /> goals and objectives of such a community programming function, as <br /> well as to the summary contained in that study as to the most <br /> feasible entity to undertake community programming should the <br /> company divest itself of such programming. Please note, that in <br /> • <br />