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HomeMy WebLinkAbout01/07/1992, C-5 - CONSIDERATION OF A REQUEST TO APPROVE AND AUTHORIZE THE DISTRIBUTION OF A REQUEST FOR PROPOSAL (RFP) FOR CONSULTANT ASSISTANCE WITH RENEGOTIATING THE CITY'S CABLE TELEVISION FRANCHISE AGREEMENTil`IN�lyl'll�llllll�l�� II MEETING DATE: RRII �� �IlUl city O f San lul S OBI SPO I. -I- I i COUNCIL AGENDA REPORT ITEM NUMBERCC -S FROM: Ken Hampian, Assistant City Administrative Officer Prepared By: Deb Hossli, Administrative AnalystP- SUBJECT: Consideration of a request to approve and authorize the distribution of a request for proposal (RFP) for consultant assistance with renegotiating the City's cable television franchise agreement CAO RECOMMENDATION: 1) Approve the RFP for consultant assistance with renegotiating the City's cable television franchise agreement and authorize its release; 2) Authorize the City Administrative Officer to review the RFP's received, select the most qualified consultant and execute a contract for an amount not to exceed $50,000 as authorized in the 1991 -93 Financial Plan. DISCUSSION: The City's cable television franchise agreement with Sonic Cable Television is scheduled to expire in April of 1993. In order to insure that the renewal process includes ample opportunity for public input, staff is recommending that the City begin renewal proceedings in January. As a first step in initiating these proceedings, staff is requesting authorization to solicit an RFP for consultant services to oversee the franchise renegotiation for the City (See Attachment 1). The Council set aside $50,000 for this purpose in the 1991 -93 Financial Plan. Under the proposed RFP, the Consultant would be responsible for: * insuring that the City conducts the renewal process in accordance with the requirements of the Cable Policies Act of 1984; * designing a renewal process that insures ample opportunity for the public to provide the City with input on the quality of the current cable operator's service (from a technical as well as customer service perspective) and future cable related needs and interests; * conducting all the appropriate studies to evaluate the performance of the cable operator and determine the future cable related needs of the community; * serving as the primary negotiator for the City during the franchise renewal process; * preparing all the legal documents necessary to finalize a new franchise agreement with the cable operator; C5 -1 "���►�lilllliill��' lilllj� city o San JNS OBISpo COUNCIL AGENDA REPORT * facilitating a process that allows the City to execute a new franchise agreement with the cable operator prior to April 1993; The upcoming renewal process is expected to be extremely complex and require the expertise of an experienced franchise negotiator. The City's existing franchise agreement was negotiated prior to the adoption of the Cable Policies Act of 1984. Like most franchise agreements entered into prior to deregulation (as provided for in the Cable Policies Act), it is very limited in its ability to control performance of, and services offered by, the cable operator. Lack of regulatory control over the current cable operator, coupled with the technological advances taking place in the cable industry, has created community expectations that the new franchise agreement will be significantly more far - reaching. Satisfying these expectations will be extremely challenging for the City and require the assistance of a highly qualified professional franchise negotiator. The use of outside assistance in the negotiation process is consistent with practices used by cities throughout the State. Therefore, there are a number of consultants in the State who specialize exclusively in cable television regnegotiation. CONCURRENCE: The City Attorney concurs with the recommendation to utilize outside assistance due to the specialized and complex legal and technical issues involved. FISCAL IMPACT: It is anticipated that professional consulting services as described in the RFP will cost in the range of $50,000. Adequate monies are available in the Administrative Office's Budget to cover this expense. It is important to note that the City expects to recoup the full costs associated with the consultant contract from the cable operator through the negotiation process. ALTERNATIVES: 1) Negotiate the franchise agreement using City staff only. While this is feasible, staff does not recommend this approach. With all the technological changes taking place in the cable industry, staff feels the City would be at a competitive disadvantage without an experienced professional cable television negotiator assisting us through this process. ATTACHMENTS: Draft RFP C -5- city of sAn Luis oBispo 990 Palm Street /Post Office Box 8100 • San Luis Obispo, CA 93403.8100 January 8, 1992 REQUEST FOR PROPOSALS FOR CONSULTING ASSISTANCE IN CONNECTION WITH NEGOTIATING A CABLE TELEVISION FRANCHISE AGREEMENT RENEWAL CONTACT PERSON: Deb Hossli, Administrative Analyst (805)781 -7151 0,5-3 REQUEST FOR PROPOSALS FOR CONSULTING ASSISTANCE IN CONNECTION WITH NEGOTIATING A CABLE TELEVISION FRANCHISE RENEWAL The City of San Luis Obispo has a non - exclusive television franchise agreement with Sonic Cable TV. The franchise expires on April 1, 1993. The City requires a professionally qualified contractor or contractors to advise, oversee, conduct necessary studies, and serve as primary negotiator in renewing our cable television franchise agreement. The contractor will be required to conduct one or more elements of a community needs assessment and related studies preparatory to negotiations with the existing operator for the renewal of this franchise. The process will be conducted under the Cable Communications Policy Act of 1984, relevant Federal Communications Commission regulations and findings, and local ordinances, resolutions and pursuant to the "Scope of Services' attached below. The City would prefer a contractor who either can perform all the required services and has a track record of doing so, or who will serve as the prime contractor and coordinate a joint venture. Proposal Contents 1. Letter of Transmittal. 2. Summary of Proposal. 3. Description of the consulting firm, including the number of consultants, years in business, and description of services performed in California. 4. Relevant experience. In addition, please submit two samples of franchisement ordinances completed for other public agencies in California. These reports will be returned upon completion of the selection process. 5. Assigned personnel, including credentials and qualifications. 6. References. 7. Technical approach. Taking into account the "Scope of Services" listed below, please include commentary on the firm's: A. Overall approach to franchisement/refranchisement. B. Scope of Services and other tasks to be completed (see below). C. Schedule of work, milestones. D. Project management. 8. Statement that the firm has the manpower and capability to perform the work as described in the RFP in an efficient manner. 9. Cost proposal. The proposal should list estimated cost of time and materials. Final cost will be based upon the final scope of work agreed upon and subject to negotiation. 10. Proposal must be no longer than 10 pages (excluding franchise agreement examples). 11. Proposal must be submitted on two -sided copies. Submittal Requirements In order to be considered, qualifications and proposals must be received in the City Clerk's Office, P.O. Box 8100, San Luis Obicno. CA 93403 -8100, by 5:00 p.m. on February 7, 1992. Each proposal shall be submitted in a sealed envelope plainly marked: "Proposal for Consulting - Cable Television Franchise Agreement, February 7, 1992 at 5:00 p.m." a -5 -L - J 2 Scope of Services I. Assist in Conducting Negotiation of a Cable Television Franchise Agreement: A. Review community needs assessment regarding Public, Educational and Government access as identified by the report of Larry F. Martinez, and update and expand as required. B. Review the performance of the cable operator under the franchise during the current franchise term with respect to quality of operator's service, including signal quality, undergrounding, response to consumer complaints, billing practices, range of programming, and sensitivity to local needs. C. Identify future cable - related community needs and interests. The assessment of community needs and interests, must, at a minimum, satisfy the requirements of the Cable Communications Policy Act of 1984. D. Estimate capital and annual operating expenses of meeting perceived community needs. Review the financial capacity and corporate structure of the operator. E. Perform technical engineering evaluation of the quality and expected life /need for rebuilds of the cable system, including wiring, assessments of the engineered channels at the head end(s), and other facilities. This will include a sampling of signal quality and reception for subscribers throughout San Luis Obispo. F. The evaluation should include the system's ability to meet the identified and potential future cable - related needs of citizens and city government and its ability to adapt to future technologies, for example, fiber optics. This should include the possibility of multiple operators and ways to encourage competition. It should also inform the City of strategies to prevent foreclosing future telecommunications options not yet fully developed and to take advantage of those technologies already in existence. G. Design a communications element for the City that will facilitate the design, implementation, and operation of a fully- interactive institutional network which will service governmental, environmental and business users in the City and which will be coordinated with the City land use process. H. Advise the City in establishing the overall procedures and processes to be followed toward negotiating /re- negotiating a cable television franchise agreement, consistent with the Cable Communications Policy Act of 1984 and other legal requirements, including the establishment of target dates for the conclusion of the various phases. I. Assist the city in determining policy objectives to be sought in system franchisement/re - (ranch isem ent. J. Assist the City in developing a comprehensive and efficient cable television ordinance for the award and administration of a cable television franchise. K. Advise, oversee, and perform function as primary negotiator toward negotiation of a final cable television franchisement /re- franchisement. L. Prepare legal documents necessary to finalize franchisement/re - franchisement of the cable television system. II. Meet or be in communication with City representatives at start of project and at least every two (2) weeks during the course of the consultation. III. Complete franchise agreement renewal process within timeframe set out in Attachment °1' C-5-5 CRITERIA FOR EVALUATING PROPOSALS Selection Process A consultant selection committee will be comprised of three members to be determined by the City. They will evaluate the proposals submitted and select a limited number of consultants who will be interviewed. Following the interview, the consultant's proposals, along with the selection committee's ranking and recommendations will be forwarded to the City Administrative Officer for final selection. Selection will not be based solely on cost, but also on other criteria as outlined below. The selected consultant will be notified by telephone and a date for contract negotiation will be set. The consultants not selected will be notified by mail, but only after a contract has been successfully negotiated with a selected consultant. The initial evaluation of proposals and interview of finalists should be completed within thirty (30) days of the deadline for proposal submission. II. Selection Criteria A. Municipal Refranchisement Experience. The committee will focus its attention on the applicant's municipal refranchisement experience in California which has progressively strengthened consumer service standards and technical standards, and resulting franchise ability to withstand legal challenges. B. Experience. The primary consultant should have a minimum of five (5) years direct experience in the telecommunications industry, with no less than three (3) years experience performing cable consulting services to municipal governments in California. The primary consultant should additionally be knowledgeable of the changing legal, technical, regulatory, political, and cultural aspects of cable television in the municipal context, and have strong organizational analysis experience regarding municipal cable television administration. The consultant team proposed for the project should be identified (and resumes provided). C. Quality of the Technical Proposal. Evaluation will be based upon the clarity of the description of how the consultant will proceed with the approach to franchisement/refranchisement. In addition, the evaluation will take into consideration the consultant's description of how the work is to be managed to control the scope, schedule, quality, and costs of the consultation. D. References. Ten (10) references for whom the consultant has conducted an initial cable franchisement or refranchisement should be provided with name, title, organization, address, and telephone number. E. Total Fee. The City expects to spend no more than $50,000 for the services described in this proposal. C -S -� ATTACHMENT "1" TIME SCHEDULE AND ACTIVITIES FOR CABLE FRANCHISE RENEWAL PROCESS Time Frame Activity January 7 Obtain Council approval of Cable Franchising Consultant RFP. January 8 Release RFP for Cable Franchising Consultant. March 1 Consultant begins work. March 1 Discussions with City Council and Staff. Consultant sponsors discussions with City Council and Administrative Staff to examine local concerns and specific circumstances affecting proposed tasks and level of effort. March 1 Engineering Review. Consultant's engineer inspects existing system and evaluates its performance. March 1 Financial Review. Financial reports of the existing system are submitted to consultant for review as to financial viability. April 1 Public Notice City prepares public notice describing the purpose of the public hearing -- to seek community input in evaluating cable company performance and to identify community needs for cable services - - and outlining the procedures the City is undertaking to refranchise Sonic. April 1 Invitations to Community Groups The City will send invitations to community organizations (such as schools, colleges, libraries, League of Women voters, neighborhood organizations, religious groups, Senior Citizen associations, etc...) advising them of public hearing. The invitation and public notice will include instructions as to length and deadline for submission. April 1 Survey If desired, a community survey would be prepared and administered /tabulated by the consultant. May 1 Public Hearing Groups and individuals would have the opportunity at the hearing to make statements concerning their perspectives of the community's cable - related needs and interests. An audio recording of the hearing would be made. 1 C-5-7 June 1 Consultant's Report to City. Consultant submits report to City on technical, financial and community needs findings. June 15 Statement of Requirements. Consultant works with City administrative staff to develop a Statement of Requirements to be presented to cable company as a Request for a Proposal to Upgrade and Make Certain Improvements. Amendments to cable ordinance are considered. July 15 Statement of Franchise Requirements. City Council presents Statement of Franchise Requirements and General Regulatory Ordinance to cable company for response. September 1 Cable Company Response. City notifies public that a proposal has been received from the cable company. October 1 Report on Responsiveness of Proposal to City's Financial and Technical Requirements. Consultant submits report to City Council examining the requirements impact on cable company's financial viability, profitability, and effect on subscriber rates. October 1 Negotiating Team. Selection of negotiating team (3 members) from City Staff. October 15 City and Consultant's Draft of Franchise Agreement Taking into Consideration the Company's Proposal. November 1 First Negotiating Session with Company. Two results: 1) Identify items both sides agree on; 2) Identify items in disagreement. November 15 Second Negotiating Session with Company. Agenda: 1) Discuss possible alternatives or options to resolve disagreements; 2) Draft compromise language. December 1 Final Draft of Regulatory Ordinance and Franchise Agreement. City staff prepare report on the ordinance, number or readings to conform to State and local law. December 15 Adoption of Franchise Agreement and Ordinance by City Council. December 31 City and Cable Company Execute Franchise Agreement. 2 S -8