HomeMy WebLinkAboutAGENDA REPORT 2000 0705 CC REG ITEM 10DMOORPARK. CITY COUNCIL
AGENDA REPORT
TO: Honorable Mayor and City Council
From: Hugh R. Riley, Interim Deputy City
DATE: June 28, 2000 (Meeting of 7/5/00)
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SUBJECT: Consider an Agreement with Telecommunications
Management Corporation (TMC) for Professional
Services Relating -to the Renewal of the Cable
Television Franchise with Adelphia Communications
Corporation.
The City Council is requested to approve an Agreement for
Professional Services with Telecommunications Management
Corporation (TMC) to assist the city with the assessment of
government and educational access needs, conduct a
technical system analysis, recommend franchise renewal
objectives for the city and participate in negotiations
with Adelphia Communications Corporation ( Adelphia), the
incumbent cable TV service provider. The Cost for these
services will be $19,200. A portion of these costs may be
recovered from Adelphia as part of the negotiated franchise
renewal.
DISCUSSION
The current Cable Television Service Franchise expires on
December 20, 2000 based on the terms of the operating
control transfer granted to Adelphia by the city in
October, 1999. The city will begin negotiations with
Adelphia for the renewal of the franchise later this month.
Utilizing the services of a professional consultant who is
experienced and up to date with current telecommunications
industry conditions and current franchise agreement
provisions is advisable and recommended. Proposals from two
consultants were obtained for services in connection with
000011
Cable TV Consultant Agreement
Page 2
the negotiations. The firms are Telecommunications
Management Corporation (TMC) and Susan Herman Consulting
(SHC) .
Both consultants are well qualified and highly respected in
the industry and both have experience with cities involved
in negotiations with Adelphia. The City Manager, City Clerk
and Interim Deputy City Manager conducted interviews of the
principal person for each firm on May 19, 2000.
Staff is recommending that Telecommunications Management
Corporation be retained for these services. This firm has
clients nationally and is currently providing services to
Simi Valley, Fillmore, La Puente and Pico Rivera and
dealing with Adelphia. TMC can provide a complete range of
services based on the city's requirements. They have and
will work with the City Attorney or, if desired, will
consult other law firms specializing in the
telecommunications industry. TMC's proposal includes a
number of tasks from which to chose with flat fees as
follows:
1.) Updating Cable TV Regulatory Ordinances- $4,800
2A.) Government and Education Access Needs Assessment -
$4,400
2B.) Public Meetings and Workshops - $3,600
2C.) Subscriber Survey, Public Satisfaction and Future
Needs - $16,000 (staff is in the process of completing
this in- house).
3.) Audit of Franchise Fees - $ 9,800
4.) Technical Analysis and Recommendations of Renewal
Objectives - $8,200
5.) Participation in Negotiations - 12,900 or on an hourly
basis not to exceed $10,000.
A detailed description of the tasks is included in the
proposal that is attached as Exhibit A to the Agreement.
Full background and reference material is available but not
attached. Staff is recommending only tasks 2A. 4, and 5.
These are the tasks considered necessary based upon city's
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Cable TV Consultant Agreement
Page 3
current circumstances and work that has already been
complete or can be completed by others. The cost of these
tasks combined is $19,200.
It is appropriate and customary to seek reimbursement for
some if not all of the costs associated with these services
from the franchisee as part of the conditions of the
renewal. However, this usually meets with resistance and
expectations for full recovery of these costs would be
unrealistic. An increase in franchise revenue resulting
from the renewal action can also be anticipated that would
help offset these additional costs. $20,000 was included in
the operating budget for fiscal year 2000/2001. This amount
also includes funds for public hearing preparation. A
budget amendment for $5,000 to increase this line item to
$25,000 is required to provide for these costs and for the
additional consulting services.
On June 5, the City Council Ad Hoc Committee for Cable TV,
Councilmembers Harper and Evans, met with staff to review
the proposals. The Ad Hoc Committee recommended that the
City retain the services of TMC based on staff's
recommendation and the fact that TMC is presently providing
services to cities in Ventura County including Simi Valley
and Fillmore.
STAFF RECOMMENDATION
Staff Recommends the City Council: 1)
2000- , approving an amendment to the
2) Approve the Agreement for Professioi
Telecommunications Management Corporation
language approval of the City Manager and
authorize the City Manager to sign the
CALL VOTE REQUIRED)
Adopt Resolution
2000/2001 Budget;
ial Services with
subject to final
City Attorney and
Agreement. (ROLL
Attachment: Resolution No. 2000 -
Agreement for Professional Services with TMC
000013
RESOLUTION NO. 2000-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF MOORPARK, CALIFORNIA, AMENDING THE FY
2000/01 BUDGET BY APPROPRIATING $5,000 FROM
THE GENERAL FUND TO ADMINISTRATIVE SERVICES
FOR SPECIAL PROFESSIONAL SERVICES (1000.5100)
WHEREAS, on June 21, 1999, the City Council adopted the
budget for Fiscal Year 2000/01; and
WHEREAS, a staff report has been presented to said Council
requesting a budget amendment appropriating $5,000 from THE
General Fund for special professional services relating to Cable
TV Franchise renewal; and
WHEREAS, Exhibit "A" hereof describes said budget amendment
and its resultant impacts to the budget line item(s); and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. A budget amendment appropriating $5,000 from the
General Fund and more particularly described in Exhibit "A"
attached hereto is hereby approved.
SECTION 2. The City Clerk shall certify to the adoption of
the resolution and shall cause a certified resolution to be
filed in the book of original Resolutions.
PASSED AND ADOPTED this 5th day of July, 2000.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
Attachment: Exhibit "A"
000014
Resolution No. 2000 -
Page 2
EXHIBIT A
Budget Revision
A. Fund Allocation:
Fund No.
Fund Name
Amount
1000
General Fund
$5,000
$5,000
$25,000
B. Budget Appropriation:
BUDGET NUMBER
BUDGETED
REVISION
NEW BUDGET
1000.5100.0000.9103
$20,000
$5,000
$25,000
Approved:
000015
AGREEMENT FOR PROFESSIONAL SERVICES
Between CITY OF MOORPARK and TELECOMMUTNICATIONS
MANAGEMENT CORPORATION for CONSULTING SERVICES
This Agreement, made and entered into this 5th day July, 2000
between the CITY OF MOORPARK, a municipal corporation, hereinafter
referred to as "City" and Telecommunications Management
Corporation, a California Corporation, hereinafter referred to as
'Consultant".
WITNESSETH:
WHEREAS, City has determined that it requires professional
consulting services to conduct cable television needs assessment
and franchise negotiations; and
WHEREAS, Consultant has submitted a proposal to provide said
services indicating he has the proper experience and background to
provide the needed services; and
WHEREAS, City wishes to retain Consultant for the performance
of said services;
NOW, THEREFORE, in consideration of the mutual covenants,
benefits and premises herein stated, the parties hereto agree as
follows:
I. Scope of Services
City does hereby retain Telecommunications Management
Corporation, Inc. (TMC) in a contractual capacity to provide the
services required in accordance with the terms and conditions
hereinafter set forth in Exhibit "A" attached hereto and made a
part hereof. And more specifically referred to as the following
tasks:
Task 2A. Government and Education Access Needs Assessment
Task 4. Technical Analysis and Recommendations of Renewal
Objectives
Task 5. Participation in Negotiations
The interpretation of the services to be provided pursuant to
this Agreement shall be made in accordance with the following
priority of listing:
1. This Agreement
2. Exhibit A - The Proposal Submitted by Consultant.
Page 1
1111
II. Compensation
The fees in full compensation to Consultant for the services
rendered shall be as follows:
Task 2a. $ 4,400
Task 4. $ 8,200
Task S. To be billed at hourly rates for a total amount not
to exceed $10,000.
RATE: Carl Pilnick - $195.00 / hr.
Michael Friedman - $155.00 / hr.
Payment to Consultant shall be made by City within thirty (30)
days of receipt of invoice indicating the project and nature of the
work performed, except for those which are contested or questioned
and returned by City, with written explanation within thirty (30)
days of receipt of invoice. Consultant shall provide to City a
written response to any invoice contested or questioned and
further, upon request of City, provide City with any and all
documents related to any invoice.
Ten percent (10 %) of all invoices shall be held as retention
and paid upon successful completion of the Scope of Services and
delivery to the City.
III. Termination
A. This agreement may be terminated with or without cause by
Consultant at any time with no less than thirty (30)
calendar days written notice of such termination to City.
This agreement may be terminated with or without cause by
City at any time with no less than ten (10) calendar days
written notice of such termination to Consultant.
B. In the event of such termination, Consultant shall be
compensated for such services up to the date of
termination. Such compensation for work in progress
shall be limited to actual services performed as of the
date of termination. Consultant shall provide to City
all materials, reports and files related to the work
performed and being performed upon termination.
IV. Term
The term of this Agreement shall be for a period commencing on
July 5, 2000 and continuing through June 30, 2001, unless sooner
terminated as herein provided. This Agreement may be extended by
mutual consent of the parties hereto.
Page 2
000017
V. General Conditions
A. City shall not be called upon to assume any liability for
the direct payment of any salary, wage or other
compensation to any person employed by Consultant
performing services hereunder for City.
B. Consultant is and shall at all times remain as to City a
wholly independent contractor. Neither City nor any of
its officers, employees, servants or agents shall have
control over the conduct of Consultant or any of its
officers, employees or agents, except as herein set
forth. Consultant shall not at any time or in any manner
represent that it or any of its officers, employees or
agents are in any manner employees of City.
C. At the time of 1) termination of this Agreement, or 2)
conclusion of all work, all original documents, drawings,
reports, calculations, computer files, notes, and other
related materials whether prepared by Consultant or its
subcontractor(s) or obtained in the course of providing
the services to be performed pursuant to this Agreement
shall become the sole property of the City.
D. Consultant shall hold harmless, indemnify and defend the
City and its officers, employees, servants and agents and
independent contractors from a claim, demand, damage,
liability, loss, cost or expense, for any damage
whatsoever, including but not limited to death or injury
to any person and injury to any property, resulting from,
or in any way connected with the performance of this
Agreement by Consultant or the City, except such damage
as is caused by the sole negligence of the City.
The City does not, and shall not, waive any rights that
it may have against Consultant by reason of Paragraph D.
hereof, because of the acceptance by the City, or the
deposit with the City, of any insurance policy or
certificate required pursuant to this Agreement. This
hold harmless and indemnification provision shall apply
regardless of whether or not said insurance policies are
determined to be applicable to the claim, demand, damage,
liability, loss, cost or expense described in Paragraph
D. hereof.
E. Consultant shall secure from a good and responsible
company or companies doing insurance business in the
State of California, pay for, and maintain in full force
Page 3
1111
and effect for the duration of this Agreement the
policies of insurance required by this paragraph and
shall furnish to the City Clerk of the City certificates
of said insurance on or before the commencement of the
term of this Agreement. Notwithstanding any inconsistent
statement in any of said policies or any subsequent
endorsement attached thereto, the protection offered by
the policies shall:
1. Name the City and its officers, employees, servants
and agents and independent contractors as
additional insured with Consultant.
2. Bear an endorsement or have attached a rider whereby
it is provided that, in the event of cancellation
or amendment of such policy for any reason
whatsoever, the City shall be notified by mail,
postage prepaid, not less than thirty (30) days
before the cancellation of amendment is effective.
Consultant shall give City thirty (30) days written
notice prior to the expiration of such policy.
3. Be written on an occurrence basis.
F. Consistent with the provisions of Paragraph E.,
Consultant shall provide general liability and
professional liability insurance in an amount not less
than one million dollars ($1,000,000) per occurrence.
Automobile bodily injury and property damage insurance
shall be maintained by Consultant in amounts not less
than $100,000 bodily injury per person; $300,000 bodily
injury per accident; and property damage of $100,000 per
accident.
At such point in time that Consultant obtains and
provides any of the above insurance with coverage limits
in excess of the amounts specified above to another
Consultant client, Consultant shall immediately provide
these same coverage limits to City.
G. Consistent with the provisions of Paragraph E.,
Consultant shall provide workers' compensation insurance
as required by the California Labor Code.
If any class of employees engaged by Consultant in work
under this Agreement is not protected by the workers'
compensation law, Consultant shall provide adequate
insurance for the protection of such employees to the
satisfaction of the City.
Page 4
000019
H. Consultant shall not assign this agreement or any of the
rights, duties or obligations hereunder. It is
understood and acknowledged by the parties that
Consultant is uniquely qualified to perform the services
provided for in this agreement.
I. Any notice to be given pursuant to this agreement shall
be in writing, and all such notices and any other
document to be delivered, shall be delivered by personal
service or by deposit in the United States mail,
certified or registered, return receipt requested, with
postage prepaid, and addressed to the party for whom
intended as follows:
City: City of Moorpark
799 Moorpark Avenue
Moorpark, California 93021
Attn: City Manager
Consultant: Carl Pilnick, President
Telecommunications Management Corp.
757 Wilshire Blvd., Suite 635
Los Angeles, California 90036
Either party may, from time to time, by written notice to
the other, designate a different address which shall be
substituted for the one above specified. Notices,
payments and other documents shall be deemed delivered
upon receipt by personal service or upon deposit in the
United States mail.
J. Nothing contained in this agreement shall be deemed,
construed or represented by City or Consultant or by any
third person to create the relationship of principal or
agent, or of a partnership, or of a joint venture, or of
any other association of any kind or nature between City
and Consultant.
K. This agreement constitutes the entire agreement of the
parties concerning the subject matter hereof and all
prior agreements or understandings, oral or written, is
hereby merged herein. This agreement shall not be
amended in any way except by a written amendment
expressly purported to be such an amendment, signed and
acknowledged by both parties hereto.
L. Should interpretation of this agreement, or any portion
thereof, be necessary, it is deemed that this agreement
was prepared by the parties jointly and equally, and
Page 5
000020
shall not be interpreted against either party on the
ground that a party prepared the agreement or caused it
to be prepared.
M. No waiver of any provision of this agreement shall be
deemed, or shall constitute a continuing or subsequent
waiver of the same provision. No waiver shall be
binding, unless executed in writing by the party making
the waiver.
N. In the event any action, suit or proceeding is brought
for the enforcement of, or the declaration of any right
or obligation pursuant to this agreement or as a result
of any alleged breach of any provision of this agreement,
the prevailing party shall be entitled to recover its
costs and expenses, including reasonable attorney's fees,
from the losing party, and any judgment or decree
rendered in such a proceeding shall include an award
thereof.
O. Cases involving a dispute between City and Consultant may
be decided by an arbitrator, if both sides agree in
writing on the arbitration and on the arbitrator
selected, with costs proportional to the judgment of the
arbitrator.
P. This agreement is made, entered into, executed in Ventura
County, California, and any action filed in any court or
for arbitration for the interpretation, enforcement or
other action to herein shall be filed in the applicable
court in Ventura County, California.
Q. The captions and headings of the various Articles and
Paragraphs of this agreement are for convenience and
identification only and shall not be deemed to limit or
define the content of the respective Articles and
Paragraphs hereof.
R. If any portion of this agreement is held by a court of
competent jurisdiction to be invalid, void, or
unenforceable, the remaining provisions will
never - the -less continue in full force without being
impaired or invalidated in any way.
S. No officer, employee, director or agent of the City shall
participate in any decision relating to this Agreement
which affects his personal interest or the interest of
any corporation, partnership, or association in which he
is directly or indirectly interested, or shall any such
person have any interest, direct or indirect, in this
Page 6
000021
Agreement or the provisions thereof.
T. Consultant agrees not to work for any private firm
located within the City limits or its Area of Interest,
or for any public agency where its jurisdiction includes
all or part of the City without the prior written consent
of the City, during the term of this Agreement. Further,
Consultant agrees to limit its actions related to
economic interest and potential or real conflicts of
interest as such are defined by applicable State law to
the same standards and requirements for designated City
employees.
U. The individual directly responsible for Consultant's
overall performance of the contract provisions herein
above set forth and to serve as principal liaison between
City and Consultant shall be Carl Pilnick. This
individual may not be substituted without the prior
written approval of the City. The individual directly
responsible for the City shall be the City Manager or his
designee.
V. The language contained in this Agreement shall take
precedence over the language contained in any exhibit to
this Agreement.
VI. Effective Date
This Agreement shall be effective on July 5, 2000.
Signed and Approved by:
CITY OF MOORPARK
Steven Kueny, City Manager
ATTEST:
CONSULTANT
Carl Pilnick, President
Deborah S. Traffenstedt, City Clerk
Exhibit A: Proposal from Telecommunications Management
Corporation dated April 19, 2000
Page 7
000022
EXHIL31T A
TELECOM MUINj�ATIO1 \4'-5) CORD
5757 Wilshire Blvd. • Suite 635 • Los Angeles, CA 90036 • (323) 931 -2600 • Fax (323) 931 -7355
CITY OF MOORPARK
PROPOSAL TO PROVIDE CABLE
TELEVISION FRANCHISE RENEWAL
CONSULTING SERVICES
April 19, 2000
C. �Propcsals\MoorparK \04- 2000.Coc
000023
T ELE COM{MJN CA? IONS M�NAQGEME,IT ORp
5757 Wilshire Blvd. • Suite 635 • Los Angeles. CA 90036 • (323) 931 -2600 • Fax (323', 931 -7355
April 19, 2000
Mr. Hugh Riley
Deputy City Manager
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
Dear Mr. Riley:
In accordance with your request, Telecommunications Management Corp.
(TMC) is pleased to submit this proposal for providing consultant assistance to
the City of Moorpark for the City's upcoming cable system franchise renewal.
As general background, TMC is an independent consulting firm, founded
in 1972, with no ties either to cable television system operators or equipment
manufacturers. All of our clients are local governments.
TMC's experience in assisting municipalities in all aspects of their
relationships with cable operators is unparalleled. TMC has provided consultant
services to such major cities as New Orleans, Nashville, Miami, Baltimore, the
District of Columbia, Portland, Cincinnati, Phoenix, Minneapolis, Jacksonville,
Little Rock, San Francisco and Los Angeles, in addition to more than 300 smaller
communities.
Our general experience has included almost all aspects of cable television
and communications, including:
(a) Provision of consultant services and support for the initial
franchise award, renewal and transfer processes.
(b) Cable system performance review and evaluation.
(c) Technical evaluation of cable systems, including the
introduction of new technology such as fiber optics and
digital compression.
(d) Financial evaluation of cable systems, including franchise
fee and compliance audits.
000024
C1Pro posalsWoorpa rk \04- 2000.doc
Mr. Hugh Riley
City of Moorpark
April 19, 2000
Page 2
(e) Planning studies of new and advanced services that could
be provided via cable systems, and evaluating the costs and
benefits of such services.
(f) Evaluating public, educational and governmental (PEG)
access needs.
(g) Reviewing system construction, operations and technical
performance, and planning for governmental, educational
and public uses of cable system facilities and channels.
Figure 1 lists the communities for which TMC has provided franchise
renewal support. All of the renewals that occurred since 1985 were subject to
the renewal procedures established in the 1984 Cable Act and modified by the
1992 Cable Act. TMC is very familiar with both Acts, as well as the
Telecommunications Act of 1996, and their impact on the renewal process.
TMC's primary personnel are Mr. Carl Pilnick and Mr. Michael J.
Friedman. Mr. Pilnick is President and Principal Consultant of TMC and has
been responsible for all consultant assignments since TMC's founding in 1972.
His resume includes Bachelor's and Master's degrees in electronics engineering
and over 25 years of cable television experience. He is a member of the Society
of Cable Telecommunications Engineers.
In addition, Mr. Pilnick was a member of the Federal Communications
Commission's Technical Advisory Committee, which advised the FCC on cable
technology, standards and practices. He is extremely familiar with the services
that cable systems may not only offer today, but advanced services that may be
provided in the future. He also has extensive experience in franchise
negotiations and strategies, franchise renewals, cable system finances and
operation.
Mr. Friedman has been an Associate Consultant with TMC for the past 19
years and has participated in all TMC projects during that period. He holds
Bachelor's and Master's degrees in communications, and has been a featured
speaker on franchise renewal and new developments in cable television
technology at seminars for the National Association of Telecommunications
Officers and Advisors.
Because TMC has extensive experience in franchise renewals, we are
prepared to work on a firm, fixed -price basis. TMC's obligations will not
terminate until the conclusion of the refranchising process.
000025
Mr. Hugh Riley
City of Moorpark
April 19, 2000
Page 3
We are enclosing a proposed Statement of Work, Attachment 1, which we
represent the "typical" consultant tasks considered by many cities. The City is
welcome either to select or delete individual Tasks, or to modify them as desired.
Attachment 2 contains a complete listing of TMC clients and reference
materials. You are encouraged to contact as many of the references listed as
you may desire.
You have also asked for the name of an attorney with whom TMC has
experience in working with on cable franchise renewals. TMC has worked with a
number of attorneys, including those from Burke, Williams and Sorensen, the
Moorpark City Attorney. In addition to the City Attorney, the City, if it desires
legal assistance in this process, may wish to consider Mr. William M. Marticorena
of Rutan & Tucker (611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626- 1998).
Bill can also be reached by phone at 714.641.1500.
TMC welcomes this opportunity to offer our services to the City of
Moorpark, and we look forward to your response.
Sincerely,
CARL PILNICK
President
Enclosures
000026
:.,-i
ATTACHMENT 1
STATEMENT OF WORK
y 00002'7
ATTACHMENT 1
STATEMENT OF WORK
PROPOSED CABLE TELEVISION
CONSULTING SERVICES TO
THE CITY OF MOORPARK
A. GENERAL
Telecommunications Management Corp. (the Consultant) shall provide cable
television consultant services to the City of Moorpark (the City) in support of the
City's refranchising process with Adelphia Communications, and in accordance
with the following tasks.
B. TASKS
Task 1
Update of Cable Television Regulatory Ordinances
The Consultant shall review and update the City's current cable television
ordinances, and submit either a new ordinance draft or recommended
new regulatory and consumer protection provisions, for the City's
consideration. The revisions shall include, but not necessarily be limited
to, the following:
• Compatibility with the Cable Television Consumer Protection
and Competition Act of 1992 and the Telecommunications
Act of 1996 and other currently applicable laws and
regulations.
Compatibility with the current and anticipated future status of
cable television technology and services.
Provision of regulatory flexibility, consumer service
standards and franchise enforcement capability to the extent
appropriate to protect the public interest.
Subsequent to submission of the revisions, the Consultant, upon request,
shall participate in relevant briefings, meetings and public hearings, up to
the adoption of the ordinance. Up to two (2) meetings are included in the
costs indicated in E. below for this task
000028
2
Task 2
Assessment of Community Needs
Sub -task 2A
Government and Educational Access Needs Assessment
The Consultant shall assess the cable access needs and interests of City
agencies and educational institutions within the franchise areas. This
assessment shall include:
• Conducting direct meetings and interviews with cognizant
governmental and educational officials, to ascertain priorities and
interests in future access uses of the cable system.
• Reviewing and evaluating potential services of interest, including
both one -way and interactive video /data /voice applications.
• Cost - effectiveness evaluation of major services of interest.
• Recommendations as to cable system capability to meet the
perceived municipal and educational needs.
The end - result of this task shall be a written report summarizing the
results of the assessment.
Sub -task 2B
Public Meetings and Workshops
The Consultant shall conduct at least three (3) public meetings and /or
workshops to provide an opportunity for interested parties and the general
public to comment on the franchise renewal process. The meeting target
audiences shall be determined by the City (e.g., business community
representatives).
The Consultant shall utilize the input developed from the meetings to
establish a comprehensive community needs assessment. The end -item
of this task shall be a written needs assessment report.
Sub -task 2C
Subscriber Survey - Public Satisfaction and Future Needs
The Consultant proposes an optional telephone survey of cable
subscribers in the City in order to assess subscriber needs and interests.
A telephone survey is considered statistically more valid than a mail
660029
survey, which depends on which individuals choose to respond. The
Consultant proposes to subcontract this task to an experienced cable
survey firm, acceptable to the City, with TMC retaining full responsibility
for meeting the City's requirements.
• The survey shall include, but not necessarily be limited to,
the following:
• Designed for a statistical error rate of ±5% or better at a 95%
confidence level.
• Random sampling of survey subjects throughout all
geographical areas of the four franchise areas.
• Inclusion of both direct response and "open ended" survey
questions.
• Pre -test of questions and responses prior to conducting the
actual survey.
• A written report providing the survey methodology, coding,
entry and analysis of results.
Task 3
Audit of Franchise Fees
The Consultant shall conduct a franchise fee audit that will include at least
the following:
A review of the revenue records of the cable operator, for at
least the most recent three -year period, including the
sources of all revenue components. This will include
revenue, such as commissions paid by the home shopping
channels, that may be paid to the corporate offices or to an
affiliate rather than directly to the local cable system.
A review of the method utilized by the operator to compute
franchise fees due to the City, including all revenue
elements included in the computation. A detailed analysis
will be made of any revenues excluded from the
computation, and whether these exclusions are in
compliance with franchise requirements and cable industry
practices.
A )W30
4
A comparison of the computed franchise fees due with
actual payments made to the City, to verify that all fees have
been paid.
In the event of any discrepancies, an estimate of the
underpayments will be made. This will cover not only the three -
year period examined in detail, but previous franchise years as
well, to the extent of the applicable statute of limitations, as defined
by the City.
The end - result of the review and audit shall be a written report detailing all
findings, along with estimates of incorrect payments, to the extent any are
found, and recommendations for future financial reports and procedures.
Up to four (4) meetings are included in the cost quoted for this task.
Task 4
Technical Analysis and Recommendations of Renewal Objectives
The Consultant shall perform an evaluation of the cable system serving
the City. The evaluation shall include, but not necessarily be limited to:
• A review of the system design and operational capability, the
age and condition of major components and facilities, and
the operator's current upgrade plans.
• A review of the system's proof -of- performance tests and
results, and a comparison with FCC technical standards.
• A review of the system's records with respect to service
calls, response to subscriber complaints, and maintenance
history.
• A review of the various government, educational and
community access facilities, including current equipment and
programming and the capability to be upgraded and
expanded to meet future needs and interests.
• A general overview of any known franchise compliance
issues.
The end -item of Task 4 shall be a written evaluation report, including all
data, analyses and conclusions. The report also shall contain
recommended minimum requirements and target objectives for franchise
renewal, in such areas as:
0000:31
5
• Regulatory terms and conditions, including the ability to
regulate to the full extent permitted by state and federal law.
• System upgrade, capacity and capability, including
consideration of advanced features, such as "user -
friendliness" and institutional communications.
• Consumer protection standards and quality of service.
• Government, educational and community access.
• Practical provisions for enforcement of franchise
commitments.
The report shall also contain a review of the impact of federal and state
legislation, with specific emphasis on the 1992 Cable Act and the
Telecommunications Act of 1996. The review shall analyze potential
impacts, including perceived advantages and disadvantages, in such
areas as regulation of rates and customer service standards. The report
also shall provide recommendations for development of a comprehensive
Telecommunications Policy with respect to both cable and other
telecommunications providers.
Up to four (4) meetings are included in the costs indicated in E. below for
this task.
Task 5
Participation in Franchise Renewal Negotiations
The Consultant shall review any renewal proposal(s) submitted by the
cable operator and provide written comments in response. In accordance
with the objectives identified in Tasks 2 and 4, the Consultant shall draft a
franchise renewal agreement, containing the elements for renewal
considered in the City's best interests.
The Consultant also will review any operator- drafted franchise documents
and provide staff with comments and suggestions.
The Consultant shall provide support in franchise renewal negotiations,
including as a minimum, the following:
Providing appropriate recommendations for negotiation
objectives and strategies.
r.
• Reviewing and evaluating any proposals submitted, and
drafting appropriate responses including franchise
agreement/ordinance provisions.
• Participation in negotiation meetings, as requested, and
acting as the City's chief negotiator, or one of its negotiators,
as desired.
• Meeting with, and briefing of, the staff and elected officials,
and attendance at public hearings and meetings, as
required.
Up to six (6) meetings are included in the costs indicated in E. below for
this task
C. PERSONNEL
Mr. Carl Pilnick, President of Telecommunications Management Corp.,
shall be the Principal Consultant for all tasks, with support from Mr. Michael J.
Friedman, TMC Vice President, as required.
D. SCHEDULE
The following schedule is proposed:
Task 1
Draft ordinance submitted within 45 days after authorization to proceed.
Task 2a
Report submitted within 75 days after authorization to proceed.
Task 2b
Report submitted within 90 days after authorization to proceed.
Task 2c
Survey submitted within 60 days of City approval of survey questionnaire.
Task 3
Report submitted within 60 days after access to or receipt of applicable
accounting information.
Task 4
Report submitted within 120 days after authorization to proceed.
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Task 5
At the City's convenience.
E. COSTS
The costs for all Tasks, on a firm, fixed -price basis, are indicated below.
The Tasks shall be invoiced as follows:
Task 1
$4,800 (invoiced upon draft submission)
Task 2A
$4,400 (40% invoiced 30 days after authorization to proceed, 40% invoiced 60
days after authorization to proceed, with the remainder invoiced upon task
completion)
Task 2B
$3,600 (40% invoiced 30 days after authorization to proceed, 40% invoiced 60
days after authorization to proceed, with the remainder invoiced upon task
completion)
Task 2C
$16,000 ($10,000 invoiced upon City approval of the survey questionnaire, with
the remainder invoiced upon submission of the survey report). The cost quoted
for this Task is dependent upon the City's acceptance of the Consultant's
designated subcontractor.
Task 3
$9,800 (50% authorized 30 days after receipt of required cable operator
documentation, with the reminder invoiced upon task completion)
Task 4
$8,200 (50% authorized 30 days after receipt of required cable operator
documentation, with the reminder invoiced upon task completion)
Task 5
$12,900 (30% invoiced 30 days after the initiation of negotiations, 40% invoiced
60 days after initiation of negotiations, with the remainder invoiced upon task
completion)
Travel expenses for local visits are included in the costs indicated above. Also
included in these costs are five (5) bound copies plus one (1) reproducible copy
of the reports. Additional copies will be provided at TMC's cost.
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ATTACHMENT 2
TELECOMMUNICATIONS MANAGEMENT CORP.
BACKGROUND AND REFERENCE MATERIAL
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