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
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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
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° 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
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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.
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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.
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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?
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• - __ 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
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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