Laserfiche WebLink
REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 2, 2012 <br />TITLE: <br />AGREEMENT AMENDMENT WITH <br />COMMUNICATIONS SUPPORT GROUP <br />FOR CABLE AUDIT SERVICES <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on I" Reading <br />? Ordinance on 2nd Reading <br />? Implementing Resolution <br />? Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute the attached amendment to <br />agreement with Communications Support Group for cable audit services in an amount not to <br />exceed $20,000, for a total not to exceed amount of $98,000, subject to non-substantive <br />changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On January 25, 2011, the City entered into an agreement with Communications support group to <br />perform a cursory franchise fee and specialized Public, Education and Government (PEG) fee <br />review of both Time Warner Cable (TWC) and AT&T California (ATT). This Phase 1 review was <br />designed to better understand how both companies have been remitting franchise fees and PEG <br />fees and determine if there was potential to recover additional unpaid fees. Phase 1 was also <br />intended to provide information to the City that would assist in determining the costs and benefits <br />of proceeding with a full audit. The cost for Phase 1 of the project was $18,000. <br />On June 23, 2011 Communications Support Group submitted a preliminary procedures review <br />that addressed the findings in Phase 1 of the project. This report lists estimated unpaid <br />franchise fee revenue of $77,000 and estimated unpaid PEG revenue of $427,000. These <br />amounts are one time monies that are in addition to the quarterly franchise fees and PEG fees <br />that are remitted to the City. To confirm these cursory estimates staff recommended a full audit <br />of TWC and ATT (Phase 2). <br />On August 1, 2011, the City amended the agreement to complete Phase 2 of the audit. Phase 2 <br />included a full three-year audit of TWC and a one-year audit of ATT. In Phase 2 the estimated <br />findings in Phase 1 were revised to $21,761 in unpaid franchise fee and interest and $495,720 in <br />unpaid PEG fees ($517,481 total). On May 16, 2012, the City mailed TWC a Request for <br />Payment in the amount of $517,481 and is working with TWC to clarify any questions related to <br />the audit findings and facilitate payment. <br />251-1