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:
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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;
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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
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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
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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."
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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
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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.
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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.
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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.
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