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HomeMy WebLinkAboutResolution No. 4829RESOLUTION NO. hgq A RESOLUTION AUTHORIZING THE SIGNING OF A LEASE OR AGREEMENT THE CITY COUNCIL OF THE CITY OF SAN RAFAEL HEREBY RESOLVES as follows: The MAYOR and CITY CLERK are authorized to execute, on behalf Qf the City of San Rafael a lease :^- agreement with A copy of which is hereby attached and by this reference mad* a part hereof. I, MARION A. GRADY, City Clerk of the City of San Rafael, here- by certify that the foregoing resolution was duly and regularly introduced and adopted at a reglzr meeting of the City Council of said City held on Tup-Sa)j the 3rd day of „t�,mtiar 19 l , by the following vote, to wit: AYES: COUNCILMEN: Jensen, Mulryan, Nixon and Mayor Bettini NOES: COUNCILMEN: Miskimen ABSENT: COUNCILMEN: None MARION A. GRADY - City Clerk s THIS CONTRACT, made and entered into this 25th day of September , 1974, by and between TELECOMMUNICATIONS MANAGEMENT CORP., a California corporation, 1900 Avenue of the Stars, Suite 1080, Los Angeles, California 90067, hereinafter called TMC, and the CITY OF SAN RAFAEL, a municipal corporation of the State of Califor- nia, hereinafter called City. WITNESSETH: WHEREAS City desires consultant services on the technical, eco- nomic and community service aspects of its cable television franchise, as set forth in Exhibit "A", attached hereto and made a part hereof, and WHEREAS TMC is willing and able to furnish such consultant ser- vices for fixed fees and out-of-pocket costs as set forth in Exhibit "B", attached hereto and by this reference made a part hereof, and WHEREAS the total sum to be paid by City hereunder shall not ex- ceed the sum of $ 12, 000.00 . NOW, THEREFORE, for and inconsideration of the premises, it is hereby agreed by and between the parties hereto as follows: I. WORK STATEMENT - CITY OF SAN RAFAEL TMC shall perform a technical, economic and community needs analysis for the City of San Rafael. This analysis shall include an anal- ysis and recommendation regarding new services which can be delivered by Tele-Vue Systems, Inc., appropriate rate structure for services at cur- rent levels and expanded levels, and a model ordinance for the City of San Rafael for the cable T.V. franchise. The particular scope of services is detailed within Exhibit "A", attached hereto and by reference herein- above made a part of this contract. II. WORK STATEMENT - OTHER JURISDICTIONS In addition to the appropriate rate structure for services at current levels and expanded levels for the City of San Rafael, TMC shall also prepare and deliver an analysis of the appropriate rate structure for ser- vices at current levels and expanded levels for the cities of San Anselmo, Corte Madera, Mill Valley and Larkspur. III. TIME SCHEDULE It is agreed by the parties hereto that tasks A, B, C and D set out in Exhibit "A" shall be performed in accordance with the time schedule set out in said Exhibit "A". IV. PAYMENTS Consultant hereby agrees to submit to City billings in triplicate for all work hereunder in accordance with the schedule of costs set forth in Exhibit "B". Out-of-pocket expenses will be itemized separately on Consultant's billing. The total costs for all work hereunder shall not exceed $12,000.00 . V. ASSIGNMENT This contract shall not be assigned by either party without first obtaining the written consent of the other party. However, if such con- sent is given, it shall be binding upon the heirs, successors and assigns of the parties hereto. VI. TERMINATION City may terminate this contract at any time without penalty prior to payment of the maximum sum of $12,000.00 upon payment of the compensation due TMC to date of termination. IN WITNESS WHEREOF, TMC has caused this contract to be exe- cuted in triplicate by its duly authorized representative, and City has caused the same to be executed in triplicate by its Mayor. TELECOMMUNICATIONS MANAGEMENT CORP. BY Carl Pilnick President (Title) CITY OF SAN�R� AEL BY �� L�Ct ( �/" /{• c C. Paul Bettini Mayor Approved as to Form: (Title) City Attorney EXHIBIT A Page 1 of 5 STATEMENT.' OF' WORK AIIALYSIS OF CABLE TELEVISION RATES AND SERVICES FOR THE CITY OF SAN RAFAEL 1. Scope Telecomr,Lunication's Management Corp. ('.',!C) shall perforr:, a technical and financial analysis of the current and planned cable system operations of Tele-vue Systems. The objectives of the analysis shall be to provide guidance to the City of San Rafael in evaluating the cable system's rate structure and Capacity for new services. to: The analysis shall include, but not necessarily be -limited ° An examination of the present services capa- bility of the cable system, and the capability planned for conformance -with FCC major -market requirements to meet the imposed March 1977 deadlin_. ° An examination of the current and proposed rate structure of Tele-vue Systems. A survey of current and future communications needs of San Rafael, with emphasis on those needs that might be satisfied, either completely or partially, by cable communications. ° An analysis of the impact that future cable services will have on the cable system's technical capability and its cost/revenue structure. A review of the options open to the City, the cable system operator, and to potential users of the system, in terms of costs and benefits that may be achieved. ° Specific conclusions and action recommenda- tions. L EXHIBIT A Page 2of5 - 2 - 2. Contract Tasks TMC shall perform the following contract tasks: Task A: Analysis of Tele-vue Systems Operations TMC shall analyze the technological capacity and financial operations of the Tele-vue Systems cable system. The analysis shall include the current status, and the planned configuration to meet new FCC major-rearhet requirements. It is assumed tnat all relevant input date availabl:; from the City of San Rafael and/or Tele-vue Systems may be accepted as valid for analysis, without the need to audit any books and records. TMC may request further clarification or breakdown of specific financial information, and, if furnished, will accept such additional data, again without audit. The technical analysis shall emphasize the tpecific capa- bility of the cable system to provide new services not now being offered, and the cost impact of each category of such service. The financial analysis shall provide a comparison of the performance of Tele-vue Systems against such standards as: ° The historical norms of other cable industry Multiple System Operators (MSG's), comparable to Viacom. ° Selected independent cable systems operating in cities similar in size to San Rafael. The financial analysis shall highlight those factors con- sidered of major significance in evaluating the relative effi- ciency, profitability and rate of return on investment, and will include, but not necessarily be limited to, such factors as: ° Relation of gross plant assets (undepreciated) to revenue per subscriber. ° Relation of purchase price of purchased systems to asset value, number of subscribers, sub- scriber revenue, and cost to duplicate equi- valent systems. ° Relation of expense categories (e.g., admin- istrative services, direct labor, plant maintenance, etc.) as percentages of total expenses and revenues. EXHIBEI A Page 3 of 5 - 3 - ° Magnitude and reasonability of corporate charges, if centralized services are pro- vided to individual cable systems from the MSO headquarters. The financial analysis shall also focus upon the specific added costs and benefits attendant to upgrading the system to meet 1977 requirements, and their impact on the residential subscribers. Task B: Communications Needs and Services Analysis TL1C, through direct interviews and contact with potential future users of the cable system, shall survey, compile and analyze the spectrum of possible new services and their cost/ benefit implications. The categories of services shall include: ° Local government communications Educational communications ° Health care communications ° Business and industrial coi«nLunications ° Residential subscriber entertainment services ° Residential subscriber non -entertainment services ° Community organization communications ° Inter -city, county and regional communications (requiring interconnection outside the city limits) The services surveyed shall be grouped to indicate degree of urgency or importance, compatibility -with the cabld system, and related cost or technological barriers. Task C:" Impact of New Services on the Cable Svstem The results of Task B shall be related to the Tele-vue Systems cable system, in terms of their impact, such as required expansion or added investment to provide the new services, and specific cost/revenue projections. An initial plan for imple- menting those services considered most attractive and economi- cally viable shall be developed. r• n tii.D11 11 Page 4 of 5 - 4 - Task D: Conclusions and Recommendations The end -item of the contract shall be a comprehensive written report which includes the input data, the analysis methodology and results, and specific conclusions and recommendation designed to provide guidance to the City in such areas as: ° Establishing a definable and practical basis to evaluate the cable system's rate structure, both curren-L-1y and in the future-:, and to relate rate; to services in an organized fashion. ° Determining the City's role in improving communications services via the cable system, both in direct governmental communications and in coordinating the requirements and objectives of other user groups. ° Provide a foundation for integrated broadband communications planning, both within the City and on a regional basis, for selected services. The final report shall specifically include comprehensive 10 -year operating and financial projections for Tele-vue Systems, using a TMC -modified computer model. The projections shall include the varying of significant input parameters (e.g., capital investment, subscriber growth rate, subscriber revenue, new services revenue) so that the results can be evaluated for the most probable range of operating conditions. This range shall include not only the input and planning data provided by Tele-vue Systems, but also TMC's considered judgment as to future expenses and revenues. The final report shall also include the details of modifi- cation of the current franchise ordinances to reflect the changes necessary, if the report recommendations are adopted. Task E (Optional): Analysis of Expanded City Role in -Ownership and/or Operations As an added option, TMC shall analyze the benefits and costs that would be involved in an expansion of the City's role in ownership and/or operations of all, or part of the cable system. This shall range from the possibility of an active role in the area of public communications only, to the possibility of full City responsibility in the event of purchase of the system upon franchise expiration. - 5 - 3. Duration of Tasks Page 5 of S All tasks shall be completed within three months after authorization to proceed. If authorized on September 3, 1974, the final report draft shall be submitted by December 2, 1974. Modifications of the draft will depend upon critique and comment received by the City. 4. Review Periods TYIC Periods, progress Citizens' addition with the to assur 5. Cost will establish a mininiui� of two contract review at approximately monthly intervals, to review the of all tasks -with representatives of the City, the Advisor; Committee, and Tele-vue Systems. In to these formal reviews, TMC will confer closely Citizens' Advisory Committee on a continuous basis e that the City's objectives are being met. TMC will perform Tasks A through D, above, to the satis- faction of the City, on a firm fixed-price basis, including all support and travel costs, for a total. fee of $13,720.00 (see attached cost breakdown). Progress invoices will be submitted September 30 and October 31, 1974, in the amount of $4,000.00 each. An invoice for $3,000.00 will be submitted with the delivery of the draft final report. The remaining $2,720.00 will be invoiced after City acceptance of the report. Task E can be performed at an additional fixed cost of $1,000.00. �— EXHIBIT B Page 1 of 1 Telecommunications Management Corp. shall receive a maximum of $12,000.00 for consultant fees and travel expenses associated with the scope of work detailed in Exhibit A. The billing shall be in adherence to the following schedule: DATE October 1, 1974 October 15, 1974 November 1, 1974 November 15, 1974 Submittal of Final Report BILLING AMOUNT $1,800.00 $1,800.00 $1,800.00 $1,800.00 $1,800.00 A retention of $3,000.00 will be held by the City of San Rafael until acceptance of the final report. a r. � I+ �, t •t .. 1 14UU 1-11-TH /CJC, SAN N1AFAr-L.GAIJf '�q.)• 1,'�F'Idi)NL �•a=,�q;.�,-n17 MAYOR C. PAUL CET71141 COulILII "FN FRED JUiSEN JOHN A. MISKIVEN UMFIEN-CE E. MULRYAn JACK G. NIXON CITY MANAGER WILLIA14 J. DIELSER , July 19, 1973 Mr. John R. Palunco 34 La Loma Court San Rafael, California Dear Mr. Palunco:-. Page 1of5 PARKS AND RECRI.ATION DEPAR'114ENT On July 15th, the San Rafael City Council approved in concept the retention of a consultant to assist the Citizens Advisory Committee. The Council's action gives the Committee the approval to contact consultants, negotiate a scope of services, and to Present a reco_nmended formula for payrient of the consultant including'contributions from Tele-Vue and other cities. At this time, the scope of services prepared by the Committee coversthe following five areas: 1) Technical; 2) Financial; 3) Programming - Public Usage; 4) Programming - Governmental Usage; 5) Programming - Educational Usage. The following questions have been raised in each of the five areas: I Technical 1. What is the present reach of existing C.A.T.V. system? 2. What is the present, capability of the existing C.A.T.V. system? It is important to identify what segments of the C.A.T.V. system are presently outfitted to operate twelve channels. 0. 3. What media resources exist in the community whieb can, in some way, contribute to the usefulness of the system? 9. What is the condition of existing media equipment with respect to "state of the art", maintenance, e..cessibi.li.ty, , estimated lire? 5. What is the existing time table for expansion by tho operato.' wit.l> do -Lail as to what segment of t.l:c community will be 1"riiDii v Page 2of5 involved in the expansion and improvements at each point in time? G. Will the operators' plans allow for the interfacing and feeding.with ref;ard to the various media sources possible? For exau;ple, by the City departments? by the schools? by the health agencies? 7. Will the ultimate use of the system be enhanced through ,the inter -connection of "head -ends" so that all segments of the system can receive a simultaneous feed from the main heed -end? S. Will the system include the capability for backup and feed of specialized transmission such as ITF8? 9. What is the estimate cost of various technical equipment packages ranging from simple back -pack cameras to two or three camera/studio set-ups? '10. Should the City acquire such hardware or Should it be leased? 11. Is it desirable to require the C.A.T.V. operator to purchase, maintain, and make available for lease, a fairly sophisticated package of hardware, or for the City to require simple origin- ation equipment using income from C.A.T.V. and other special- ized sources as a means of financing hardivare packag-cs suit- able for various needs in the community? II Financini I. Potential of other revenue streams for ViaCom via Tele-Vue in San Rafael based upon other systems' experience or known potential, e.g. pay television, L.O. advertising. 2. Development of a rate/services matrix or some similar analyt- ical technique to measure the question relative to San Rafael both in terms of existing services and proposed or future services. 2a. Performance benchmark codification for the industry on a product line basis. 2b. Based upon the services determined to be required, and considering the installation timing, ascertain an appropriate rate range. 3. Entertain the possibility of seeking another. cable. company should acceptal.A e rate ranges, based upon national indices, prove untenable to Tele-%Iue on an ROI basis or whatever. -2- tJLHl�ill t� ` Page 3 of 5 4. Acquire the usage of a simulation model for cable operators (see Rand Rent.) and develop projections for Tele-Vue with and without added revenue potential. 5. Su;;gest mothods for San Rafael to share in anticipated revenue streams other than subscriber rate. III Programming - Public Access 1. Given Tele=Vue laxity in the local origination area of FCC regulations, is it reasonable to expect adherence to future regi?lations without some measure of coiiw-ai city control? 2. 17ill "ec-onomic feasibility" be the s;:umbling Block precluding wide public usage of the myriad uses and possibilities of C.A.T.V.? 13. Should the City consider a permanent takeover of the cable system with an eye to providing maximum facilities to citizens at the lowest possible rates? 4. What would be.the net positive effects of a rate increase at this time on the public; both usage- and'viewing-wise? IV Programming - Governmental Access 1. What are the major needs for governmental communication within the community? 2. What agency can best.operate the channel, including studio facilities and program production? 3. Who has access and control over.goverrimental access channels? 4. [ghat liaison is necessary with cable operator? 5. What present government funds, used for communication, would be more efficiently spent for cable? 6. What are the future revenue sources in regard to C.A.T.V.? 7. What are the guidelines in determining if.a program should be broadcast on public, educational or governmental access channel? V Pro:�ramminf - Educational Access 1. Is access to studios and equipment guaranteed to the schools and public at no charge? 2. Insofar as it relates to instructional radio and TV programs, is control. of these programs vested. by ordinance with local education authorities? -3- - • - __ EXH1131-1 U Page 4 of 5 3. Will there: be a provision in the ordinance which will require the C.A.T.V. to provide programs for specialized audiences? To the extent that it relates to the community is there a provision requiring a percentage of: programs to be cable cast in appropriate local foreign languages? 4. Who in our community will control access to local public and/or educational channels? Should we have our own local CATV access committee? 5. Assuming that all access and control are a part of the ordinance, is there a prevision in the ordinance which will cause the allocation, access, and control provisions to survive and remain in full effect as a contractual obli- gation in the event any federal or state regulatory agency assumes control over all or a part of C.A.T.V. and neglects to include these provisions? 6. Is there a provision in the ordinance requiring two-way audio capability to be established in all new cable systems and within a reasonable time on already installed cable systems? 7. Will cable be connected to schools or school buildings not presently connected? Is there a charge? 8. Have any plans been formulated to include community college programming or facilities? 9. Will other companies tie in their cable facilities at no charge so there can be county -wide education programming? 10. Would libraries come under both governmental access and education access? 11. Would this ordinance be for San Rafael Schools (Dixie) or would it be with all county schools? 12. Would CATV accept up to 101jo allocation of educational channels? 13. Will individual school districts be able to pr•e-empt the use of one channel at any time for school -to -home programming? 14. Are there any plans to interconnect. the school buildings of each district? 15. Financial arrangements have been made elsewhere in' the country whereby a percentage of net receipts is returned to education for developmental. TV after six years. Where does Tele-Vue stand on this? 16. Will CATV interface with 2,900 M11Z ( ITFS ) systems? _ � tlirillit.� v Page 5of5 17. Does Tele-Vue expect to be a simplex or duplex system? 18. If there is a school production facility, will Tele-Vue provide free interconnection between the facility and CATV central distibution point? 19. If the possibility arose is CATV interested in joint venture production facilities and technical staff? 20. Will CATV utilize its channels to guarantee the local education TV channels be received in each of the educational facilities in M.irin Counl.y? The enclosed letter and consultant questionnaire have been sent to various CATV consulting firms within California. We will be con- tacting these firms prior to the July 31st deadline in order to answer any questions they might have and to check to see if they are interested. We will also be moving back a week on our tentative time table. Enclosed is a revised time schedule. We will be contacting you as to the time of our next meeting. Sincerely yours, DENNIS AUCH Sr. Recreation Supervisor DJ/rb ar Encls. Letter mailed to: Ms. Christel Mandanis Mr. Jerry Folley ' Mr. Ronald II. Coelyn Mr. Neil R. McIiugh Mr. Wm. E. Osterhaus Mr. Paul IV. Robinson -5- AMENDMENT The City of San Rafael and Telecommunications Management Corp. agree to modify the itemized scope of services to the following degree: A) The rate analysis will be conducted for the City of San Rafael, as well as the cities of San Anselmo, Mill Valley, Larkspur and Corte Madera. B) Excluded from the scope of services will be the provision for an analysis of the present ordinance and franchise agreement. C) The maximum contract payment will be $12,000.00. This will be paid in installments as outlined in Exhibit B. D) The questions detailed in the July 19, 1974 letter of Mr. Dennis Jauch will be addressed either directly or indirectly within the context of the final report. (The letter is included as Exhibit C..) E) The target date for the summation of the final report will be December 2, 1974, and the final report shall be submitted no later than December 16, 1974. The aforementioned provisions are agreed to and accepted by: THE CITY OF SAN RAFAEL C C. Paul Bettini, Nfayor TELECOMMUNICATIONS MANAGEMENT CORP. l Carl Pilnick, President