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I <br />I <br /> <br />BER_NICK AND LIFSON <br /> A II~RO~'r--.~IIONAL. A~I'~'OCiATION <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />management~oflHeritage Communications of Des Moines, Iowa. Heritage <br />was a highly regarded multiple system operator. Developed <br />primarilYthrOugh acquisitions of existing cable systems, Heritage <br />developed ~a ~eputation in the industry for quality technical <br />performance and high levels of customer service and satisfaction. <br />Although SUch! experience does not necessarily translate into any <br />guarantee ~f iDerformance by the new owners, the representations of <br />the princI~leS of the proposed new owners before the various city <br />councils &ndilcable commissions, and the written documentation <br />provided~by t~e proposed new owners indicate a probability that the <br />cities can expect a quality cable operation with experienced <br />individuals making the ultimate management decisions. <br /> <br /> Further,.the present local management has been retained for <br />the time being, and for the most part the cities have experienced <br />quality loCal!management and technical supervision of the existing <br />cable sySt~msiover the past years of Hauser ownership. The <br />prospective ~Owners have represented that the quality of past <br />managementloperations will be maintained. <br /> <br /> As state~ earlier, the technical analysis of the system was <br />conducted bY ~SC. The Commission determined early on that it would <br />be necessary not only to review the technical ability of the <br />proposed 0Whirs, but that an analysis of the technical performance <br />of the eXiSting system to determine Franchise compliance would be <br />necessary ~pr~or to any recommendation regarding the proposed <br />transfer, ::The of the system, alone, warranted such an analysis <br /> a~e <br />of the existing system. <br /> <br /> CSC o~ndUcted an extensive analysis of the cable system. A <br />review was-made of the technical operating conditions of the'system <br />at the co~panY,s headends and microwave and fiber optic hubsites, <br />thirty (30) i subscriber network test points, fourteen (14) <br />institutional, network test points, and multiple points located <br />throughout the communities for evaluating the physical condition of <br />the company's:plant. <br /> <br /> The a~tmal physical technical analysis was supplemented by <br />numerous personal contacts from CSC to the company and the <br />Commission~ [An initial report was issued by CSC and Jonathan <br />Kramer, principal of CSC, participated in an oral presentation of <br />the technical' analysis. The oral presentation was open to all <br />policy makers' and the general public and was taped for future <br />review. The ~nitia! report of csc is attached hereto as Exhibit B <br />and made a part hereof. The company responded in writing regarding <br /> <br />I <br />I <br />I <br />I <br /> <br /> <br />