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COMMUNICATIONS SUPPORT GROUP, INC. <br />1255 Somerset Lane Newport Beach, CA 92660 VOICE: (714) 788-8566 <br />EMAIL: jrisk@csgaudits.com <br />WEB: www.csgaudits.com <br />June 24, 2011 <br />Mr. Robert Carroll <br />Senior Management Analyst <br />Parks, Recreation, and Community Services <br />20 Civic Center Plaza M-75 <br />Santa Ana, CA 92702 <br />SUBJECT: CONSULTING PROPOSAL— PHASE 2 AT&T and TIME WARNER <br />Dear Mr. Carroll, <br />We are pleased to present our proposal to provide specialized, franchise fee, and PEG <br />fee consulting services to the City of Santa Ana for the second phase of auditing <br />associated with Time Warner Cable (TWC) and AT&T California (AT&T)'. <br />Communications Support Group, Inc. (CSG) and its subcontractor, Diehl Evans & Co. <br />proposes to perform a review of subscriber counts, franchise fee payments and PEG <br />fee payments made by AT&T and Time Warner Cable. We have divided the work <br />product as follows: 1) an agreed-upon procedures one-year review of AT&T; and 2) an <br />agreed-upon procedures 3 -year review of revenues as it pertains to franchise fee <br />payments and PEG fee payments. <br />To best meet the needs of the City, we have combined the resources of our firm, <br />Communications Support Group, Inc. ("CSG"), a California-based consulting firm with <br />extensive experience in performing franchise fee and PEG fee reviews on cable <br />television companies, with the resources of Diehl, Evans & Company, LLP ("DE&CO"), <br />an Irvine -based CPA firm. Our two firms have worked successfully together over the <br />past seven years, having provided joint cable television consulting services for over <br />thirty California cities and counties, including many AT&T and Time Warner systems. <br />Approximately eighty-five percent of the work on this engagement will be performed by <br />CSG, under the direction of Mr. John Risk, President of CSG. Mr. Risk holds a <br />Bachelors Degree (with high honors) in Social Research from the University of <br />Michigan. Mr. Risk is a former five-year Board member of the National Association of <br />Telecommunications Officers and Advisors (NATOA). Since1979, Mr. Risk has held a <br />variety of private and public sector management positions involving cable television <br />franchise administration, policy, programming, production and technology. Mr. Risk has <br />1 CSG was retained in the first six months of 2011 to perform preliminary reviews of AT&T and Time Warner. <br />©2011 Communications Support Group, Inc. Page 1 of 9 <br />