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Charter Communications MOU Cable Franchise Implementation w/Gilroy, Hollister & San Juan BautistaMEMORANDUM OF UNDERSTANDING CABLE TV FRANCHISE IMPLEMENTATION THIS MEMORANDUM OF UNDERSTANDING is made this 17th day of April , 2000, between the CITY OF GILROY; a municipal corporation, ( "GILROY"); the CITY OF HOLLISTER; a municipal corporation ( "HOLLISTER "); and the CITY OF SAN JUAN BAUTISTA; a municipal corporation ( "SAN JUAN BAUTISTA "). RECITALS The following recitals are a substantive part of this MEMORANDUM OF UNDERSTANDING: 1. This MEMORANDUM OF UNDERSTANDING is entered into pursuant to Gilroy City Council approval on April 17, 2000; Hollister City Council approval on May 1, 2000 ; San Juan Bautista City Council Approval on April 18, 2000 . 2. GILROY, HOLLISTER, AND SAN JUAN BAUTISTA ( "CITIES "), all currentyy cable television ( "CATV ") franchise agreements with Charter Communciations LLC. 3. CITIES wish to work together in order to facilitate a more concerted and cohesive approach to the CATV franchise implementation process and ensure that CATV customers within CITIES are receiving the appropriate level of service from Charter Communications LLC. i. CITIES intend to retain the professional set vices of a qualified consultant, selected with the ap�r - -H of each CITY, to assist in implementing the +e-ms of each CI-Y'S franchise agreement (see EXF1lBI ';A ") 5. The purpose of the Agreement is to secure the commitment of each CITY to participate in the implementation of the CATV franchise agreement. MEMORANDUM OF UNDERSTANDING THE PARTIES MUTUALLY AGREE AS FOLLOWS: Term of Memorandum of Understanding. This Memorandum of Understanding shall cover the period of ,4Pr�l /7, zoo& through September 30, 2001. It may be renewed upon mutual written agreement for an additional period not to exceed one year. 2. Scope of Work. CITIES will conduct a joint CATV franchise implementation process that will include: Oversee contract compliance matters associated with the Cable Franchise Agreement, oversee the Transfer of Ownership process from Charter to AT &T, oversee a franchise fee review and; assist in the "start-up" of the Community Media Access Partners (CMAP). 3. Proiect Coordination. Gilroy will serve as the project leader and contract administrator for this CATV franchise implementation process. Work tasks relating to the CATV implementation process shall be shared equitable between the CITIES. The CITIES shall meet regularly to decide upon the work needed to conduct the franchising implementation process and to review its progress. All decisions relating to-the conduct of the CATV franchising implementation process shall be done through consensus of the CITIES. 4. Cost Apportionment. CITIES shall provide financial support in an amount not to exceed $100.000 for the CATV franchise implementation effort and shall pay their proportional share for the costs of undertaking and maintaining the refranchising process as follows: City of Gilroy 56% of remaining total City of Hollister 44% of remaining total San Juan Bautista 55.000 (lump sum) Any financial support in excess of the above specified amount shall be approved in writing by the CITIES in advance, and shall be allocated among the jurisdictions based on the formula identified in this sectior:. 5. Consultant. On behalf of the Ci "IES, the services of The Buske Group will be secured to conduct the CATV franchise implementation process. Attachment A. the Consultant Agreement, describes the contract services to be performed by the Consultant, and the cost and anticipated schedule for the project. The project will be initiated following execution of this Memorandum of Understanding by the CITIES, and the subsequent execution of the Consultant Contract and Issuance of 'a : ,,,tice to proceed. I S approval of the �cooe of work. and schedule is jndicated )v Yecution of his Niem -andum of T�nde-stan 6. Contract Administration. Gilro, will administer the Consultant Contract on behalf of the CITIES. The Consultant Contract vil be administered according to the general requirements and standards which apply to other similar projects administered by Gilroy. Gilroy staff will award the contract, manage the project, including payment of the Consultant and serve as the liaison with the Consultant. Gilroy staff will coordinate project review and decision- making with CITIES. The project manager for Gilroy shall be the Consultant's primary contact and will assist the Consultant in functions involving coordination with CITIES. Assistance from staff of the participation jurisdictions will be provided upon request of the project manager. CITIES shall be copied with any and all correspondence or documentation of any type between Consultant and Gilroy. Consent shall be obtained from CITIES by Gilroy for any proposed deviations from the contract by the Consultant. 7. Payment. Gilroy shall bill Hollister monthly, and San Juan Bautista will pay a one time lump sum. Invoices shall reflect the CONSULTANT's monthly invoices, and CITIES shall be billed 2 based on their proportional share of their financial support of the project. CITIES shall endeavor to pay their respective amounts due within thirty (30) days from receipt of billing. 8. Non - Liability of Officials and Employees. _No official or employee of any CITY under this Memorandum of Understanding shall be personally liable to any other entity or person in the event of any default or breach by CITIES. 9. Non - Discrimination. CITIES covenant that there shall be no discrimination against any person or group due to race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Memorandum of Understanding. 10. Compliance with Law. CITIES shall comply with all applicable laws, ordinances, codes and regulations of the federal, state, and local government in any activity pursuant to this Memorandum of Understanding. 11. Conflict of Interest and Reporting. CITIES shall at all times avoid conflict of interest or appearances of conflict of interest in performance of this Memorandum of Understanding. No CITY shall act independently outside the stop <° of This Memorandum of Understanding kith Charter Communications LLC or the CONSUL.TA NT. 12. Notices. All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be L sea for . delivery of service of process. .',ddress of GILROY is as follows: ;ty Administrator Rosanna Street Gilroy, CA 95020 b. Address of HOLLISTER is as follows: City Manager 375 Fifth Street Hollister, CA 95023 C. Address of SAN JUAN BAUTISTA is as follows: City Manager P.O. Box 1086 San Juan Bautista, CA 95045 13. Termination. This memorandum of understanding may be terminated upon providing a thirty (30) day written notice from one City to other CITIES. In the event of termination, the party terminating shall be responsible for its share of any and all costs incurred for work done up to the time in which the agreement is terminated, to the extent that costs can be attributed. 14. Time of Essence. Time is of the essence in the performance of this Memorandum of Understanding. 3 15. Authority to Execute. The persons executing this Memorandum of Understanding on behalf of the parties warrant that they are duly authorized to execute this Memorandum of Understanding and that by executing this Memorandum of Understanding, the parties are formally bound. 16. Indemnification. In contemplation of the provisions of Section 895.2 of the Government Code of the State of California imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of said Code, the parties hereto, as between themselves, pursuant to the authorization contained in Section 895.4 and 895.6 of said Code, will each assume the full liability imposed upon it, or any of its officers, agents or employees by law for injury caused by negligent or wrongful act or omission occurring in the performance of this Memorandum of Understanding to the same extent that such liability would be imposed in the absence of Section 895.2 of said Code. To achieve the above stated purpose, each party indemnifies and holds harmless the other parties for any loss, cost of expense that may be imposed upon such other party solely by virtue of Section 895.2 17. Modification. This Memorandum of Understanding constitutes the entire agreement between the parties and supersedes any previous agreements, oral or written. This Memorandum of Understanding may be modified only by subsequent mutual A:ritten agreement executed by all of the parties. 18. Waiver. All waivers of the provisions of this Memorandum of Understanding must be in writing by the appropriate authorities of each of the CITIES. 9. California Law. This Memorandum of Understanding shall be construed in accordance with the laws )f the St_ :e ol' California.. Any action commer:,ed ahou this Memotandum of Ut de.::tar -1,ig l V )e iied in i " e 'ntral brancf of the S.-. : ,,a Clara ` uperic, Court. 20. Interpretation. This Memorandum of Understanding shall be interpreted as though prepared by all of the parties. 21. Preservation of Agreement. Should any provision of this Memorandum of Understanding be found invalid or unenforceable, the decision shall affect only the provision interpreted, and all remaining provisions shall remain enforceable. IN WITNESS THEREOF, these parties have executed this Memorandum of Understanding on the day and year shown below. 4 Attest City Clerk- Date: Approved as to form: City Attorney Date: CIT SAN JUAN BAUTISTA Ci y Manager Date: vc� Attest; �C- City Clerk ; k , Date: Approved as to form: CITY OF HOLLISTER ------- ---- -- City Manager o Date: Attest: D t}eClerk � j� Date: Approved as to form: i "- . (�� City Attorney S "(S --0 O Date: DCTA_/L2--" LJCUX,�AkV City A orney � / (a' `�n Date: o 5 MEMORANDUM OF UNDERSTANDING CABLE TV REFRANCHISING EFFORT THIS MEMORANDUM OF UNDERSTANDING is made this 21st day of December, 1994, between the CITY OF MORGAN HILL; a municipal corporation ( "MORGAN HILL "); the CITY OF GILROY; a municipal corporation, ( "GILROY "); the CITY OF HOLLISTER; a municipal corporation ( "HOLLISTER "); the CITY OF SAN JUAN BAUTISTA; a municipal corporation ( "SAN JUAN BAUTISTA "); and the COUNTY OF SANTA CLARA, a political subdivision of the State of California; ( "SANTA CLARA"). RECITALS The following recitals are a substantive part of this MEMORANDUM OF UNDERSTANDING: 1. This MEMORANDUM OF UNDERSTANDING is entered into pursuant to Morgan Hill City Council approval on December 21 , 1994; Gilroy City Council approval on December 19 ' 1994; Hollister City Council approval on December 5 , 1994; San Juan Bautista City Council approval on December 20 , 1994; Santa Clara County Board of Supervisors approval on December 13 , 1994. 2. MORGAN HILL, GILROY, HOLLISTER, AND SAN JUAN BAUTISTA ( "CITIES "), along with SANTA CLARA ( "COUNTY "), all currently have cable television ( "CATV ") franchise agreements with Falcon Cable TV of Northern California ( "FALCON "). 3. CITIES and COUNTY wish to work together to conduct a joint CATV refranchising effort in order to facilitate a more concerted and cohesive approach to the CATV refranchising process and ensure that CATV customers within CITIES and COUNTY are receiving the appropriate level of service from FALCON. 4. CITIES and COUNTY intend to retain the professional services of a qualified consultant, selected with the approval of each CITY and COUNTY, to assist in developing a refranchising strategy, identifying common and unique jurisdictional CATV issues and goals, and developing a program for the actual negotiation of a new CATV franchise. 5. The purpose of this Agreement is to secure the commitment of each CITY and COUNTY to participate in the CATV refranchising process. 1 MEMORANDUM OF UNDERSTANDING THE PARTIES MUTUALLY AGREE AS FOLLOWS: 1. Term of Memorandum of Understanding. This Memorandum of Understanding shall cover the period of December 21 , 1994 through June 30 , 1996 . It may be renewed upon mutual written agreement for an additional period not to exceed one year. 2. Scope of Work. CITIES and COUNTY will conduct a joint CATV refranchising process that will include: development of a refranchising strategy, development of CATV franchise goals and objectives, and negotiation of a new CATV franchise. 3. Proiect Coordination. MORGAN HILL will serve as the project leader and contract administrator for this CATV refranchising process. Work tasks relating to the CATV refranchising process shall be shared equitably between the CITIES and COUNTY. The CITIES and COUNTY shall meet regularly to decide upon the work needed to conduct the CATV refranchising process and to review its progress. All decisions relating to the conduct of the CATV refranchising process shall be done through consensus of the CITIES and COUNTY. In the event consensus can not be reached, a majority vote shall resolve the issue. Utilizing a formula whereby each jurisdiction has one vote plus its percentage of CATV subscribers, CITIES and COUNTY will be eligible to cast votes accordingly: City of Gilroy 29 votes City of Hollister 23 votes City of Morgan Hill 27 votes City of San Juan Bautista 11 votes County of Santa Clara 10 votes 4. Cost Apportionment. CITIES and COUNTY shall provide financial support in an amount not to exceed ($145.680.00) for the CATV refranchising effort and shall pay their proportional share for the costs of undertaking and maintaining the refranchising process as follows: City of Gilroy $50,202 (37% of remaining total) City of Hollister $39,347 (29% of remaining total) City of Morgan Hill $46,131 (34% of remaining total) City of San Juan Bautista $ 5,000 County of Santa Clara $ 5,000 Any financial support in excess of the above specified amount shall be approved in writing by the CITIES and COUNTY in advance, and shall be allocated among the jurisdictions based on the voting formula identified in Section 3. 2 5. Consultant. On behalf of the CITIES and COUNTY, the services of The Buske Group will be secured to conduct the CATV refranchising process. Attachment A, the Consultant Agreement, describes the contract services to be performed by the Consultant, and the cost and anticipated schedule for the project. The project will be initiated following execution of this Memorandum of Understanding by the CITIES AND COUNTY, and the subsequent execution of the Consultant Contract and issuance of a notice to proceed. CITIES and COUNTY'S approvals of the project scope of work, cost and schedule is indicated by execution of this Memorandum of Understanding. 6. Contract Administration. MORGAN HILL will administer the Consultant Contract on behalf of the CITIES and COUNTY. The Consultant Contract will be administered according to the general requirements and standards which apply to other similar projects administered by MORGAN HILL. MORGAN HILL staff will award the contract, manage the project, including payment of the Consultant and serve as the liaison with the Consultant. MORGAN HILL staff will coordinate project review and decision - making with CITIES and COUNTY. The project manager for MORGAN HILL shall be the Consultant's primary contact and will assist the Consultant in functions involving coordination with CITIES and COUNTY and FALCON. Assistance from staff of participating jurisdictions will be provided upon request of the project manager. CITIES and COUNTY shall be copied with any and all correspondence or documentation of any type between Consultant and MORGAN HILL. Consent shall be obtained from CITIES and COUNTY by MORGAN HILL for any proposed deviations from the contract by the Consultant. 7. Payment. MORGAN HILL shall bill the CITIES and COUNTIY monthly. Invoices shall reflect the CONSULTANT's monthly invoices, and CITIES and COUNTY shall be billed based on their proportional share of their financial support of the project. CITIES and COUNTY shall endeavor to pay their respective amounts due within thirty (30) days from receipt of billing. As agreed by MORGAN HILL, GILROY and HOLLISTER, HOLLISTER'S share of the program costs will be paid by GILROY and MORGAN HILL through June 30, 1995. GILROY and MORGAN HILL will each pay fifty percent (50 %) of HOLLISTER's bills under this Memorandum of Understanding through June 30, 1995. HOLLISTER will reimburse GILROY and MORGAN HILL for the bills paid by each of them on its behalf by July 31, 1995. HOLLISTER shall be responsible for directly paying its own bills as of July 1, 1995, through the remainder of the term of this Memorandum of Understanding. 3 8. Non - Liability of Officials and Employees. No official or employee of any CITY or COUNTY under this Memorandum of Understanding shall be personally liable to any other entity or person in the event of any default or breach by CITIES or COUNTY. 9. Non - Discrimination. CITIES and COUNTY covenant that there shall be no discrimination against any person or group due to race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Memorandum of Understanding. 10. Compliance with Law. CITIES and COUNTY shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government in any activity pursuant to this Memorandum of Understanding. 11. Conflict of Interest and Reporting. CITIES and COUNTY shall at all times avoid conflict of interest or appearances of conflict of interest in performance of this Memorandum of Understanding. No CITY or COUNTY shall act independently outside the scope of this Memorandum of Understanding with FALCON or the CONSULTANT. 12. Notices. All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process. a. Address of MORGAN HILL is as follows: City Manager 17555 Peak Avenue Morgan Hill, CA 95037 b. Address of GILROY is as follows: City Administrator 7351 Rosanna Street Gilroy, CA 95020 c. Address of HOLLISTER is as follows: City Manager 375 Fifth Street Hollister, CA 95023 d. Address of SAN JUAN BAUTISTA is as follows: City Manager P.O. Box 1086 San Juan Bautista, CA 95045 4 e. Address of SANTA CLARA COUNTY is as follows: County Executive 70 West Hedding Street San Jose, CA 95110 13. Termination. This Memorandum of Understanding may be terminated upon providing a thirty (30) day written notice from one CITY or COUNTY to other CITIES or COUNTY. In the event of termination, the party terminating shall be responsible for its share of any and all costs incurred for work done up to the time in which the agreement is terminated, to the extent that costs can be attributed. 14. Time of Essence. Time is of the essence in the performance of this Memorandum of Understanding. 15. Authority to Execute. The persons executing this Memorandum of Understanding on behalf of the parties warrant that they are duly authorized to execute this Memorandum of Understanding and that by executing this Memorandum of Understanding, the parties are formally bound. 16. Indemnification. In contemplation of the provisions of Section 895.2 of the Government Code of the State of California imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of said Code, the parties hereto, as between themselves, pursuant to the authorization contained in Section 895.4 and 895.6 of said Code, will each assume the full liability imposed upon it, or any of its officers, agents or employees by law for injury caused by negligent or wrongful act or omission occurring in the performance of this Memorandum of Understanding to the same extent that such liability would be imposed in the absence of Section 895.2 of said Code. To achieve the above stated purpose, each party indemnifies and holds harmless the other parties for any loss, cost or expense that may be imposed upon such other party solely by virtue of Section 895.2 17. Modification. This Memorandum of Understanding constitutes the entire agreement between the parties and supersedes any previous agreements, oral or written. This Memorandum of Understanding may be modified only by subsequent mutual written agreement executed by all of the parties. 18. Waiver. All waivers of the provisions of this Memorandum of Understanding must be in writing by the appropriate authorities of each of the CITIES and COUNTY. 19. California Law. This Memorandum of Understanding shall be construed in accordance with the laws of the State of California. Any action commenced about this Memorandum of Understanding shall be filed in the central branch of the Santa Clara Superior Court. 5 20. Interpretation. This Memorandum of Understanding shall be interpreted as though prepared by all of the parties. 21. Preservation of Agreement. Should any provision of this Memorandum of Understanding be found invalid or unenforceable, the decision shall affect only the provision interpreted, ,,dnd, all remaining provisions shall remain enforceable. IN WITNESS THEREOF, these parties have executed this Memorandum of Understanding on the day and year shown below. CITY OF MORGAN HILL City Manage Date: Attest: �I / i �. r Approved as to form: City AtOm y Date. C CITY OF - zR— R .)� Attest: 1>e ZCity Clerk Date: — -- cZ — g? Approved as to form: City Attorney (( Date: fS CITY OF HOLLISTER Mayor Date: March 23, 1995 Attest: DEPUTY City` Clerk Date: March 23, 1995 Approved as to form: City AttomW Date: -5 COUNTY OF SANTA CLARA z Chairperson, Board of Supervisors Date: c:wp51 \94ad \cab1etv\mou4. dft 1/25/95 CITY OF SAN JUAN BAUTISTA City Manager Date: A Attest: City Cle i Date: e 5 7 Approved as to form: City Attorney- Date: Attachment A CONSULTANT AGREEMENT THE BUSKE GROUP THIS AGREEMENT is made this 21st day of December , 1994, by the CITY OF MORGAN HILL, a municipal corporation, ( "CITY "), and The Buske Group-, a California corporation, ( "CONSULTANT "). RECITALS The following recitals are a substantive part of this Agreement: 1. This Agreement is entered into pursuant to the City of Morgan Hill's City Council approval on December 21, 1994. 2. CONSULTANT is qualified by virtue of experience, training, education, and expertise to accomplish these services. AGREEMENT THE PARTIES MUTUALLY AGREE AS FOLLOWS: 1. Term of Agreement. This Agreement shall cover services rendered from December 21. 1994_ until June 30, 1996. 2. Services to be Provided. The CONSULTANT shall perform cable television franchise renewal consulting services, as identified in Exhibit "A ", "Scope of Work ", which is attached hereto and incorporated by reference, for the City of Morgan Hill; City of Gilroy; City of Hollister; City of San Juan Bautista; and County of Santa Clara. Such. services shall consist of the following. 1. Development of a detailed franchise renewal plan and implementation strategies. 2. Review of past performance of Falcon Cable TV including technical, financial, customer service and PEG access compliance. 3. Identification of future community needs and interests. 4. Development of proposed franchise provisions and a draft model fr anchise and ordinance. 5. Evaluation of structural options for jurisdictions to conduct ongoing joint franchise administration. 6. Documentation of all findings and recommendations into one comprehensive report. 7. Conduct informal negotiations with Falcon Cable TV. 1 3. Compensation: CONSULTANT shall be compensated as follows: 3.1 Amount. ($145,680). Compensation under this Agreement shall not exceed $145,680. 3.2 Payment. For work under this Agreement, payment shall be made per monthly invoice. For extra work not a part of this Agreement, written authorization by CITY will be required, payment shall be based on the following hourly rates: Sue Buske $ 75.00/hour Stephen John $ 85.00/hour Clifford Schrock $ 75.00/hour Randy VanDalsen $ 65.00/hour Joe Van Eaton $180.00/hour 3.3 Records of Expenses. CONSULTANT shall keep accurate records of payroll, travel, and expenses. These records will be made available to CITY. 3.4 Termination. CITY and CONSULTANT shall have the right to terminate this Agreement, without cause, by giving thirty (30) days written notice. In the event of such termination, CONSULTANT shall (1) promptly discontinue all services affected (unless the notice directs otherwise); and (2) upon payment in full by CITY for all services completed up to and including the termination date, deliver all data, reports, estimates, summaries, and such other information and materials as may have been accumulated by CONSULTANT in performing the Agreement, whether completed or in progress. 4. Insurance Requirements. 4.1 Commencement of Work. CONSULTANT shall not commence work under this Agreement until it has obtained CITY approved insurance. All insurance required by this Agreement shall be carried only by responsible insurance companies licensed to do business in California and shall name as additional insured CITY, its elected officials, officers, employees, agents and representatives. All policies shall contain language to the effect that: (1) the insurer waives the right of subrogation against CITY and CITY'S elected officials, officers, employees, agents, and representatives; (2) insurance shall be primary noncontributing and any other insurance carried by the CITY shall be excess over such insurance, and (3) policies shall provide that it shall not be cancelled or materially changed except after thirty (30) days' notice by the insurer to CITY by certified mail. CONSULTANT shall furnish CITY with copies of all such policies or certificates promptly upon receipt. 4.2 Workers Compensation Insurance. CONSULTANT and all subcontractors shall maintain Worker's Compensation Insurance, if applicable. 2 4.3 Insurance Amounts. CONSULTANT shall maintain comprehensive, broad form. general public liability and automobile insurance against claims and liabilities for personal injury, death, or property damage, providing protection of at least $1,000,000 for bodily injury or death to any one person for any one accident or occurrence and at least $1,000,000 for property damage. CONSULTANT shall also maintain professional liability insurance in an amount of $250,000 per occurrence. 5. Non Liability of Officials and Employees of the CITY. No official or employee of CITY shall be personally liable for any default or liability under this Agreement. 6. Non - Discrimination. CONSULTANT covenants there a shall handicap, no discrimination based or upon race, color, creed, religion, sex, marital status, age, p, g ancestry, in any activity pursuant to this Agreement. 7, Independent Contractor. it is agreed ent or that CONSULTANT of CIT shall act and be an independent contractor and no g employee 8. Compliance with Law. CONSULTANT shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government. 9. Ownership of Work Product. All documents or other information developed or received by CONSULTANT shall be property CITY. upon CONSULTANT of this provide CITY with copies of thes e ms upon demand o Agreement. 10. Conflict of Interest and Reporting. CONSULTANT shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement. 11. Notices. All notices shall be personally delivered or mailed, via first class mail to the below listed addresses. These addresses shall be used for delivery of service of process. a. Address of CONSULTANT is as follows: The Buske Group 3001 J Street. Suite 201 Sacramento. CA 95816 b. Address of CITY is as follows: (with a copy to): City of Morgan Hill Morgan Hill City Attorney 17555 Peak Avenue 17555 Peak Avenue Morgan Hill, CA 95037 Morgan Hill, CA 95037 12. CONSULTANT'S Proposal. This Agreement shall include CONSULTANT'S 3 proposal or bid which is incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern. 13. Licenses. Permits and Fees. CONSULTANT shall obtain a City of Morgan Hill Business License, all permits, and licenses as may be required by this Agreement. 14. Familiarity with Work. By executing this Agreement, CONSULTANT warrants that: (1) it has investigated the work to be performed; and (2) it understands the difficulties, and restrictions of the work under this Agreement. Should CONSULTANT discover any conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY and shall not proceed, except at CONSULTANT'S risk, until written instructions are received from CITY. 15. Time of Essence. Time is of the essence in the performance of this Agreement. 16. Limitations Upon Subcontracting and Assignment. Neither this Agreement or any portion shall be assigned by CONSULTANT without prior written consent of CITY. If CONSULTANT is permitted to subcontract any part of this Agreement, CONSULTANT shall be responsible to CITY for the acts and omission of its subcontractors as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationship between any subcontractor and CITY. 1'. Authority to Execute. The persons executing this Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement. 18. Indemnification. CONSULTANT agrees to protect, and hold harmless CITY and its elective or appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damage to property, or interference with use of property, arising out of, or in any way connected with performance of the Agreement by CONSULTANT. CONSULTANT'S agents, officers, employees, subcontractors, or independent contractors hired by CONSULTANT. The only exception to CONSULTANT'S responsibility to protect, defend, and hold harmless CITY, is due to the sole negligence of CITY. This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULTANT. 19. Modification. This Agreement constitutes the entire agreement between the parties and supersedes any previous agreements, oral or written. This Agreement may be modified or provisions waived only by subsequent mutual written agreement executed by CITY and CONSULTANT. 4 20. California Law. This Agreement shall be construed in accordance with the laws of the State of California. Any action commenced about this Agreement shall be filed in the central branch of the Santa Clara County Superior Court. 21. Interaretation. This Agreement shall be interpreted as though prepared by both parties. 22. Preservation of Agreement. Should any provision of this Agreement be found invalid or unenforceable, the decision shall affect only the provision interpreted, and -all remaining provisions shall remain enforceable. 23. Effective Date of Contract. This contract shall only be effective contingent upon approval by all participating jurisdictions to the cable television refranchising Memorandum of Understanding between the City of Morgan Hill, the City of Gilroy. the City of Hollister, the City of San Juan Bautista, the County of Santa Clara and the County of San Benito IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below. Date: CITY OF MORGAN HILL By: &w C ' City Manager ST: ity Clerk Date: "CONSULTANT" THE BUSKS GROUP �— By: � - Date: APPROVED AS TO FORM: Morg ill City Attorney Dat 12 9' `7 a VED AS TO FORM: Morgan Hill Risk Manager Date: 1:)-7 -7 owp51 \94ad \cab1ety \buske2.con 11/30/94 E Exhibit A A PROPOSAL TO THE CITIES OF MORGAN HILL, HOLLISTER, GILROY AND SAN JUAN BAUTISTA AND THE COUNTIES OF SANTA CLARA AND SAN BENITO, CALIFORNIA TO PROVIDE CONSULTING SERVICES FOR CABLE TELEVISION FRANCHISE RENEWAL Prepared by The Buske Group 3001 J Street, Suite 201 Sacramento, CA 95816 (916) 441 -6277 1. SCOPE OF WORK Morgan Hill Group Phase 1 We will conduct a detailed review and evaluation of the existing Falcon franchises and other documents which affect franchise obligations or the franchising process. The Buske Group team will then work with Morgan Hill Group staff as well as a designated staff person from each jurisdiction and the City /County Attorney to: Devise reasonable and cost - effective renewal procedures consistent with federal, state and local law. As the Morgan Hill Group jurisdictions are aware, the Cable Act sets out formal franchise procedures which must be followed if activated by the local government or cable operator (47 U.S.C. Section 546). Most local governments never complete the formal renewal process. The operator and local government resolve renewal issues through negotiation. However, to protect its interests against challenges to the franchising process, the Morgan Hill Group cannot ignore the formal procedures. We therefore believe a reasonable franchise procedure should provide adequate time for negotiation, and at the same time ensure that the Morgan Hill Group can comply with all requirements of the Cable Act before the franchises expires. This can be accomplished by scheduling the initial public proceedings contemplated by 47 U.S.C. Section 546(a) over a period of several months, during which time the jurisdictions can also complete a needs assessment and customer survey, conduct a technical audit, examine other franchises from comparable cities, review customer service issues, develop a negotiating position, and meet and negotiate informally with Falcon. If Falcon and the Group can reach agreement, the formal process can be terminated. If the Morgan Hill Group and Falcon cannot reach agreement, the City will be in a position to successfully conclude the initial public proceedings and move forward with the other steps of the Cable Act renewal procedures. N. Work with the City /County Ab orney is satany ordinance amendments entify requirements of state and local laws which also must required to enable the franchise process to move forward smoothly. Work with designated Morgan Hill Group staff person to establish a list of official staff contact persons for each jurisdiction. Establish Cable Franchise Renewal Task Force (including representatives of each jurisdiction). Agree upon meeting schedules and role and responsibilities of the Task Force. Conduct training session for staff contact persons and the Cable Franchise Renewal Task Force. Explore the difference under State law between a Memorandum of Understanding (MOU) and a Joint Powers Authority (JPA) and determine which structure is most appropriate to bind the various jurisdictions together during the renewal process. Review and /or develop draft MOU or JPA. Assist the jurisdictions by preparing a response to any request from Falcon Cable to initiate the franchise renewal process pursuant to the Cable Act. Prepare initial request for information from Falcon. As the Morgan Hill Group moves forward in the franchising process, The Buske Group team will identify areas in the existing ordinances which ought to be improved and advise how those areas can be enhanced, consistent with the Cable Act. Information gathered in the community needs assessment described in a later section of this proposal will play an important role in these recommendations. The consulting team will review franchises from comparable cities and draw upon our extensive files of franchise documents in preparation for the drafting of various sections of any new franchise agreement. D .liv _rables_: The initial review will be completed with development of a renewal plan and timeline, establishment and training of Franchise Renewal Task Force, establishment of an appropriate legal entity (i.e., MOU or JPA) under which the Morgan Hill Group will operate during the franchise renewal process, and the preparation of responses to any request from Falcon to proceed with franchise renewal. 7 Morgan Hill Group Phase 2. The Buske Group team proposes to perform a technical review of the existing system which will involve an inspection of the physical construction of the plant. Additionally, a basic engineering test will be made at selected points within the system to verify that it meets minimum performance standards on all channels. The audit will be of great assistance in identifying whether and to what degree problems such as radiation and signal leakage, variable audio levels, and variable picture quality between channels exist on the system. It will also permit the Morgan Hill Group to judge the extent and nature of any system upgrade or rebuild which will be necessary and to assess any proposal from Falcon with regard to upgrade or rebuild of the system. MU •. : ... The Buske Group's engineer will review certain technical reports which will be requested of Falcon as a precursor to the testing. Specifically, we propose to obtain the following documents from Falcon for our review: A system profile describing the age, construction, architecture, capacity, technology of headend and cable plant, maps of areas built and areas activated. A channel chart. • The results of recent sweeps on the end points of major trunks. Results of the most recent proof -of- performance tests. Results of the most recent signal leakage tests. The review of these documents will alert the engineer to problems which may be noted in the reports. It will also provide preliminary information on what program of system maintenance is utilized by Falcon. This task will involve a review of cable plant design maps and portions of the distribution system selected for detailed inspection. The cable distribution plant will be examined to determine: (a) whether it adheres to the design maps; (b) compliance with industry standards; and (c) the general quality of construction. Certain points on the system in each community represented by the Morgan Hill Group will be inspected and documented regarding criteria such as: Condition of the plant. Adequate clearance between telephone and power utilities. • Proper grounding. Compliance with the National Electric Code (NEC). Evidence of corrosion. Defective mechanical connection. Conformity to design documentation. All field inspections will be documented in both written and photographic form. At least six of the inspections will be made at points where active power supplies are installed. [CIIIIIIIIIIIAMAII(W-INU M-0 ,. Clifford Schrock, The Buske Group's consulting engineer, proposes to perform certain tests which are in compliance with generally accepted test procedures. Tests will be made at the system headend and at points throughout the distribution network including points in each City /County represented in the Morgan Hill Group. We recommend that the tests be conducted jointly with technical representatives from the cable company, using test equipment provided by the company. Our past experience indicates that this is a very desirable procedure since it affords us an opportunity not only to perform regular test, t sts.t also the ability of the cable system st aff to p verifies that adequate test equipment is available to perform regular system tests and support maintenance procedures. At minimum, this process will include tests for the following performance parameters: E . Video and audio carrier levels. . Peak -to- valley frequency response. . Carrier -to -noise measurements. . Hum modulation. . Composite triple beat distortion. . Intermediate distortion. . System radiation. . Subjective TASO viewing tests. • The electrical plant testing will include tests of the headend. Tests will be performed to verify the quality of individual signals from broadcast and satellite sources. Deliverables: The Buske Group will prepare a report documenting the results of the inspection and testing. The report will provide complete details on the results of all phases of our analysis. Included in the documentation will be photographs and an overall evaluation of the system performance. 10 180 R-OTI-Ken; fit— We propose to assist the Morgan t tasks which follow Hwr llow are suggested: evaluating past performance of the cable operator. T Review the operator's compliance with the existing franchise. Conduct a financial review of the system to determine whether Falcon has paid the proper franchise fees and to ascertain the general financial condition of the system. Review customer service standards and consumer complaints and assist the City in conducting a customer satisfaction survey. Review current PEG access channels, equipment, facilities and services. The Morgan Hill Group has an inte'nehave received ral� benefits performance to assure that it and members o f the public of the existing franchise. In addition, the jurisdictions are entitled to deny renewal under formal Cable Act procedures if they determine that the operator has failed to comply substantially with a material term of a franchise, or if they determine that the operator's performance has been unreasonable in light of community needs. Review may also result in immediate improvements in service in some areas. We recommend that the Morgan Hill Group's past performance review focus on a few areas which are of particular public, financial or legal significance. The areas selected for review will be identified through preliminary discussions with staff, but based on our previous experience with other franchise renewals, we believe that certain areas may warrant a detailed examination. In some cases, if it is determined that Falcon has failed to comply with a franchise provision, the Morgan Hill Group may be I required to give Falcon notice and an opportunity to cure the defect in its performance. We frequently find that cable companies have underpaid franchise fees. Underpayments are often the result of a combination of bookkeeping errors and intentional exclusion of certain types of revenues. We propose to submit information requests to Falcon and, if necessary, to examine public documents on file with the US Copyright office to determine whether Falcon has excluded revenues which ought to be included in the calculation of the franchise fee for each member jurisdiction of the Morgan Hill Group. 11 • /1 1./ i • 0 173- 1 1• -11 Typically, it is not necessary to perform a detailed financial review to determine whether the cable operation is financially capable of providing service. Instead, the purpose of our review would be primarily to assist the City in evaluating the reasonableness of its own position and the validity of any financial claims made by Falcon. In preparation for negotiations with the operator, The Buske Group team will review public documents describing Falcon's financial status and will attempt to obtain specific financial information concerning the Falcon system. The financial information reviewed will also help us determine whether any special conditions need to be placed on Falcon to assure performance. We intend to submit an- initial request for financial information to Falcon early in the renewal process. Additional information may be sought when needed, including during any negotiations as the renewal process moves forward. In addition, if the Morgan Hill Group wishes to have a detailed review of Falcon's financial records conducted, we could perform that review. However, we believe the Group should only decide to audit Falcon's records if the initial review suggests the cost will justify the benefits. Deliverables: The Buske Group team will prepare written data requests and a short summary of the results of the financial analysis, as required for negotiations. During the process, if it is discovered that Falcon has underpaid franchise fees to the jurisdictions, the consultant will assist the jurisdiction in recovering those funds. 12 •u• . We propose to review customer service standards and s complaints in order to ascertain the level o f consumer satisfaction with Falcon The following six tasks are proposed: • First, we will examine all available complaint files held by members of the Morgan Hill Group and, to the extent possible, from Falcon. • Second, we will review any current t customer erothe service in effect and compare those standards • Third, we will solicit and review information from Falcon nts and specific to standards, procedures for handling customer comp and "tracking" of customer complaints. Fourth, we will ask all individuals who are invited to participate in the needs assessment workshops (which will be discussed later in this proposal) to respond to a customer satisfaction s questionnaire. relations, such questionnaire will cover all critical are a of consume as cable company telephone response, frequency of outages, billing practices, response time, and quality of repair service. The results will be non - scientific, but will provide a valuable sampling. Fifth, prepare a survey instrument and conduct a customer satisfaction survey to assess satisfaction with current levels of service provided by Falcon. The questionnaire will also include questions which identify subscriber interest in community based PEG access, new technology based services, and additional programming services. Sixth, we will ask persons attending the public hearings held during the renewal proceedings to fill out a questionnaire like the one presented during the workshops. Task Five, described above, involves a telephone survey. We offer two options with regard to this survey process. notion 1: Lesher Wilson Communications, our survey firm, proposes to draw a sample from the current Falcon subscriber base in the Morgan Hill Group. The sample size for the three cities with the largest subscriber base (Morgan Hill, Hollister, and Gilroy) would be sufficient to allow analysis for each community confidence. The independently with a sampling error of ±8% at be too small to make stet sti a iy sample sizes for the smaller communities would significant conclusions about the findings for each of the smaller communities. 13 The total sample size for all jurisdictions involved would be approximately 470. The sampling error for the total sample (properly weighted to reflect actual subscription levels) would be i4 %, again at the 95% level of confidence. These measures will give a broad and useful picture of consumer satisfaction and possible problem areas which need to be addressed in the future. Franchising authorities have the right to enforce customer service standards which are in the franchise. Many communities have had good success in negotiating enforceable standards in concert with cable companies, who have a strong economic interest in maintaining both a good image and responsible practice in the customer service area. Therefore, we will review comprehensive standards now being used by other cities in light of the specific problems identified as an outcome of our research for the Morgan Hill Group. These standards will be modified as necessary to address unique local concerns, and the modified standards will provide the basis for negotiations with Falcon. Deliverables: An oral report and memo documenting the outcome of the review of complaint files and customer service standards and level of consumer satisfaction. Examples of quality customer standards from other cities will be provided. We will prepare a draft of customer service standards shaped to meet the Morgan Hill Group needs. A survey instrument and process for the conduct of a customer service /community needs and interests survey. The report will include a summary document keyed to the full report and highlighting the significant findings of the survey. These recommendations will be integrated into the overall compilation of needs and interests (see Section D of proposal) which will form the basis of proposed franchise provisions. 14 The Buske Group proposes to conduct a review of any current access resources and services. The review process will include the following tasks: First, prepare and distribute to any PEG management entities a set of forms relating to: (1) the level of equipment and facilities available; (2) the degree to which those resources are utilized; (3) the types of service provided, such as training, outreach, program promotion, etc.; (4) programming hours for each channel, both locally- produced and imported; (5) users of each channel; (6) funding levels and funding sources; (7) operating policies and procedures; (S) contracts between access management entity(s) and the City or cable company. Second, conduct an on -site review of facilities and conduct interviews with access staff and users. The Buske Group has extensive files containing information from other communities regarding the level of resources, equipment and facilities that are available for access. We will compare that material to the data gathered regarding the Morgan Hill Group. This information, in combination with the input received during the workshops described in the next section and information gathered during public hearings, will be utilized to determine specific future needs in the access area. Deliverables: An oral and written report documenting work performed and the outcomes of the review. Specific recommendations regarding future access needs and interests will be included. These recommendations will be integrated into the overall compilation of needs and interests (see next section of proposal) which will form the basis of proposed franchise provisions. 15 M*rT6MJkVJWi�R4K4 111111111, We propose to assist the Morgan Hill Group in the conduct of a needs assessment which will identify future cable - related community needs, interests and concerns relative to the franchise renewal process. The principal method we propose to use to implement our approach in identifying community needs is a series of ten structured workshops designed to reach primary cable user groups. Participants in the workshops will be asked to answer questions which will allow the Morgan Hill Group to identify future cable - related needs and interests, as well as identify concerns regarding the operator's performance. Our experience is that these structured workshops are very successful in assuring that user's expression of needs, interests and concerns is well- informed. These workshops are also successful in developing significant involvement in the franchising process by a wide variety of vitally interested groups. The method is efficient, because it permits the Morgan Hill Group to obtain information relevant to a number of critical franchising tasks through a series of simple and inexpensive sessions. In short, the workshop method creates a sizable, informed, and involved constituency, often useful in subsequent negotiations and in the political process. For this reason we believe the workshop method is preferable to telephone or written surveys as the primary instrument of needs assessment. We also recommend that the Morgan Hill Group schedule a series of hearings to provide an opportunity for the public to address issues being explored through the assessment process and review of past performance. This will not only permit the jurisdictions to comply with any formal Cable Act renewal requirements, it will maximize public participation and support for the renewal process. The needs assessment will conclude with a compilation of the results of all needs assessment activities (including the telephone survey data), and the formulation of specific recommendations which will be the basis of proposed franchise provisions. The reports prepared can be presented as part of any renewal proceedings conducted by Morgan Hill Group member jurisdictions consistent with the Cable Act. 16 - • _ 1.1WA.IRTAWS �•• The workshops will be closely targeted to permit tailoring presentations that speak to the specific interests of critical cable user groups within the various jurisdictions served by the Morgan Hill Group. Our current intention, subject to review, is to conduct ten workshops designed for the following five groupings and to select locations for the meetings which encompass all of the member jurisdictions of the Morgan Hill Group: • Government departments and agencies. • Non - profit organizations in areas such as community service, social service, health care, and youth /senior citizen service. • Arts, cultural, and heritage groups and organizations. • Educational institutions including local school districts and any post- secondary educational institutions located in the community. Interested public and citizens at large. Each workshop will include an intensive introduction explaining the nature of modern cable service in critical areas (i.e., programming, consumer service, system design and technology, PEG access, and non - entertainment uses of the system, including video, voice and data services). Special emphasis will be placed on presenting the industry developments most pertinent to each targeted workshop, and reviewing the experiences of similar organizations in the Morgan Hill Group and other jurisdictions. Current and developing federal regulatory policies will be summarized as needed. Ample opportunity for questions and clarifications will be provided. Following the introductory educational segment of the workshop, a group brainstorming process will allow participants to clarify their thinking on what uses of cable service they would most like to see maintained or made possible through the franchising process. Each participant will complete the workshop by filling out a questionnaire designed to clearly express user needs to be fulfilled in the renewal process. Workshop participants will also be asked to identify existing problems with delivery of cable services. The Buske Group team will ascertain community needs and interests in the areas of public, educational and government (PEG) access uses of a cable communications system. PEG access represents a rich opportunity for community uses of the cable communications medium. The Cable Act permits franchising authorities to require certain support for PEG access, and any future amendments to that legislation are likely to preserve this right. In addition, many cable 17 companies have found it in their own larger interest to agree through negotiation to provide a broad range of support in the areas of capital equipment and facilities, dedicated access channels, organizational support, and other services. Through the workshop process, we will document the kind and degree of future community uses likely in the Morgan Hill Group, taking into account experiences in comparable communities. Our workshops will complement information gathered specific to current access channels, equipment, facilities and services and information gathered through the telephone survey. The Buske Group team will determine the kind of cable system required to meet future community needs in the Morgan Hill Group. Part of this task will be accomplished through the workshop process. Workshop participants will not be expected to become technical experts. However, introductory presentations in these forums will include a review of the current and developing "state -of- the -art" for new cable systems, as well as those being rebuilt or upgraded today. In addition, the technical audit of the cable system suggested earlier in this proposal can provide valuable information regarding the condition of the existing system. By considering the current system and its condition and capabilities in light of the identified community needs and interests, the consultant will be able to determine what technical changes must be made to the existing cable system (i.e., upgrade or rebuild) in order to meet those community needs and interests. (See discussion of technical audit above.) Finally, the consulting team will consider community demographics and new developments by the cable industry in other locales. Based on this information, the team will assess: a. Rebuild or Upprade ri annel Ga a ity Remirements. An assessment will be made as to the degree of upgrade or rebuild which would be necessary to provide services at a level indicated by the needs assessment results. b. Two wak Interactive Service Requirements, Voice Video. Data. Many modern urban cable systems today have the activated capacity to provide two -way services such as data and voice transmission, and video transmission from remote locations. Some requirements are related to institutional uses. However, others are required for effective delivery of services to individual subscribers. The needs assessment process will include introductory information regarding two -way and advanced cable service, and, through the workshop process, should result in the initial identification of two -way and advanced video services that might be significantly used on the cable system by ordinary subscribers. 18 Many cable systems C. are being designed to enable subscribers to choose the package o cabl doevices desired, and to ensure that those services are delivered in a way not interfere with the use of VCR's, home video game terminals and the like. For example, most new or upgraded systems today include an up-to -date technology for pay - per -view programming. There are many ways of accomplishing pay -per- view. Some cable systems utilize two -way addressable converter technology for instant, push -button program choice. Others require a subscriber to call the cable company on the phone for an individual program. Still others offer a package of programs over a period of time which are activated through a decoder mailed to the subscriber by the company, or through switching equipment manipulated by cable company personnel in a box outside the subscriber's home. We believe it is reasonable to request that appropriate technology be provided in a franchise which will optimize the ability of subscribers technical ev ew of the information the�esult choice of packages. Following the of the needs assessment, we propose to formulate the substance of proposed franchise provisions regarding technology to maximize consumer choice. d. Iechnical Standards. The Federal Communication Commission has provisions that control technical standards fora standards ds appropr cities and cable companies to agree to some technic design and community needs and to place them, with provision for review and revision, in the cable franchise agreement. Franchise provisions requiring periodic technical tests by the companies and good reporting to the franchising authorities are also advisable. We propose to develop appropriate technical standards and supporting franchise provisions as part of the renewal project. D liv .rabies: Questionnaire results, along with other information provided by the process, will be compiled and translated by the consultants into reports and recommendations to serve as the basis for formulating the substance of proposed provisions for new franchise documents to be used in negotiations with the - cable company. W • • • • • • • / 1 • • / all1111111 01 M6,111111 ►I rare MM / / - / • • T To 1 1 The Buske Group team will work with the City to identify the specific elements which ought to be included in any future franchise and assist in establishing the City's negotiating position. More specifically, we will: /- / ••1• ••• • / / Mww= MR • •• 1 Based upon the results of the needs assessment process, The Buske Group, in conjunction with other members of the consulting team, will prepare a document for City approval containing recommendations regarding the elements deemed suitable for inclusion in a new franchise and model franchise documents. This document may include proposed positions regarding: System upgrade, rebuild and extension. • Construction and design. Technical standards. • Programming. Management and staffing. • Customer service. Local origination programming. • PEG access support. • Other services. We will work closely with the designated City /County legal staff to translate these recommendations into franchise ordinance language. The Buske Group proposes to develop the initial draft ordinances (i.e., Cable Communications Ordinance and Franchise Ordinance) and provide them to the designated City /County legal staff for review. This approach has proven to be very cost efficient for many local governments in that (1) it requires attorneys to spend less time on the project and (2) the jurisdictions benefit from access to our extensive file of franchise agreements from other cities. 20 b. In addition to franchise provisions establishing general service requirements, the jurisdictions must develop ordinance provisions to enable them to monitor and enforce the franchise. These provisions may be subject to franchise negotiations, and thus would be developed before negotiations begin. The Buske Group team has wide experience in developing provisions and procedures for monitoring the compliance of cable operators within the requirements of franchises. Ms. Buske has been involved in monitoring compliance and drafting ordinance language in cities such as Salina, Kansas; Oakland County, Michigan; West Sacramento, California and Wadsworth, Ohio. Mr. Jolin has been directly involved in developing compliance models for Multnomah County, Oregon. The consulting team will assist the Morgan Hill Group as required in recommending ordinance provisions Which •�` ^ - -* *�1° C�.etom Will h• .. D.nvicinne Fn�';rc ■a -yam-- - C. hP Ungraded in the FutlitE. Since franchises are typically renewed for long periods of time -- often 10 -15 years -- community needs and available technology are certain to change during the term of franchises. A review ds period revisit every five adequacy years �s system technology and performance stand appropriate, and will likely be proposed as a part of the substance of a proposed franchise ordinance provision. If, as is likely, an upgrade or rebuild is required, more frequent review periods will be integrated with upgrade or rebuild schedules to provide effective checkpoints for progress and completion. We propose to develop appropriate re- openers in preparation for any franchise negotiations. When the above tasks are completed, the Morgan Hill Group would be ready to proceed with informal negotiations. The procedures and process for such negotiations are described later in this proposal. If informal negotiations are not successful, it will be necessary for the Morgan Hill Group to proceed with the formal renewal process (see later section of this proposal). d. Dra ft Model Franchise and Ordinance Based upon the input gathered and analysis undertaken, The Buske Group's legal experts will prepare draft franchise agreement and ordinance language for the member jurisdictions of the Morgan Hill Group. We are assuming in this proposal that the substance and form of franchise agreements and ordinance will be identical for all member jurisdictions of the Morgan Hill Group. D .liv _rables: Model franchise agreement and ordinance containing goals and recommendations developed through tasks conducted throughout this process. 21 E. The Buske Group will assist the Morgan Hill Group by analyzing the structure and organization of a cross - section of intergovernmental authorities which deal with cable communications administration on behalf of their member jurisdictions. This analysis will result in a suggested nnnoina intergovernmental structure for joint oversight of cable communications systems serving member jurisdictions of the Morgan Hill Group. The recommendations will identify funding sources, staffing levels, and legal relationships which will consider the special needs of the Morgan Hill Group. It should be noted that some of the work which IDLY be done under Phase I of this project in order to determine the appropriate structure for uniting the jurisdictions during the process of renewing the franchise agreements with Falcon, will be utilized during this task. r) iverablea: A model administrative structure for ongoing joint cable administration. All of the interim reports and information gathered during the preceding tasks will be joined into one major report. The report will contain an executive summary as well as the complete reports, as appropriate, for each of the interim tasks undertaken. The report will be prepared in draft form and provided to representatives of the member jurisdictions of the Morgan Hill Group and the Cable Television Franchise Renewal Task Force. Based upon input received, the report will be prepared in final form and a presentation provided to the City Council or County Board of each jurisdiction. In order to control costs, the consultant suggests that two oral presentations be provided since the various member jurisdiction seem to cluster into two groups: (1) Morgan Hill, Gilroy, and Santa Clara County, and (2) San Juan Bautista, Hollister, and San Benito County. Deliverables: Final report and presentation 22 Morgan Hill Group Phase III I •2 • • • - i The Buske Group team members have led many successful negotiations for original franchises, franchise renewals, and transfers. They have also worked ects together in various combinations embers have'aed otion nlewhich they Franchise ha veobeen which The Buske Group team m important participants include negotiations in Salina, Kansas; West Sacramento, California; Santa Rosa, California; Kansas City, Kansas; Gillette, Wyoming; Thurston County, Washington; and companies (e.g., e.g., TCInPost- Newsweek9 Viacom, have involved several major cable p an es and many others). We propose to bring the lessons of these experiences to the Morgan Hill Group's process, to assist in planning, organizing, conducting and facilitating negotiation sessions with Falcon. Subject to review by the Morgan Hill Group, we recommend a process consisting of the following elements: Form the negotiating team, including selected representative (s) organ Hill Group staff and legal counsel (optional), Principal consultant, and possibly others. Under this task we have included two budget options. Budget Option 1 includes the costs associated with having The Buske Group lead consultant Sue Buske and attorney Joe Van Eaton present at all negotiating sessions. Budget Option 2 includes costs associated with having Ms. Buske serve as lead consultant and having Mr. Van Eaton advise but not be present during negotiating sessions. Have preparatory meetings with cable company team to identify major areas needing discussion in negotiations, agree upon a general timetable for completion of major areas of discussion, settle on meeting logistics and format, and specifically schedule future meetings. We tentatively suggest that the Morgan Hill Group attempt to complete negotiations in five two -day sessions or ten one -day sessions. 23 • Request written proposals from Falcon on the various elements of the services, equipment, and facilities which it proposes to provide during and term of any new franchise agreement. Evaluate those proposals as part of the negotiating process. The key elements typically include: (1) system rebuild or upgrade; (2) PEG access and community uses; (3) customer service. standards; (4) reporting; (5) re- openers; (6) penalties, bonding, insurance, and (7) comments on draft model franchise. Hold meetings to reach agreement on any necessary modifications to the Morgan Hill Group's proposed franchise elements, which will have been prepared following the needs. assessment process. Wherever possible, the Group's team would take the initiative to provide drafts of recommended language changes. Every effort should be made to prepare agendas and drafts of proposed revisions far enough in advance of meetings to be able to circulate them to the Group's team members for comment and approval, and then to the cable company team for review. • Use the forum of the_ negotiating meetings to request, review, evaluate, discuss, and, if possible, approve information from the cable company regarding its technical, legal and financial qualifications. • Hold a public hearing to afford the public the opportunity to comment on the substance of the agreements, and the drafts of documents produced. This would occur when the Morgan Hill Group determines that the negotiations have served their purpose, and favorable agreement has been reached. Such a hearing would be designed to satisfy federal Cable Act requirements. A major strength of The Buske Group team is the participation of exceptionally knowledgeable and experienced specialists who will lend expertise to the team and assist the Morgan Hill Group in developing appropriate responses to legal, financial and technical claims made by Falcon. The qualifications of the consulting team are described in detail in Part II of this proposal. Briefly: Sue Buske has over twenty years of experience in the cable television field and has spent the last thirteen years advising cities regarding cable television matters. She has served as a franchise consultant with the Cable Television Information Center; as Executive Director of the National Federation of Local Cable Programmers, and (for the past six years) as President of The Buske Group. Ms. Buske will serve as lead consultant to the Morgan Hill Group and will assist the 24 City in devising a specific renewal procedure, ass assessments and a'll work related to other meetings as appropriate, conduct needs PEG access, and coordinate all activities of the franchise renewal team. Stephen Jolin, Ph.D., has been involved in cable franchise renewal negotiations in many communities throughout the Northwest. He has been significantly involved in the development he institutional �f Portland, Multnomah County and Washington County, Hseved as consultant to the Multnomah Cable Regulatory oa subsidiary of Houston Industries. He Commission transfer of ownership of Rogers Cablesyste recently completed an analysis of concable s financial position, /exam ne complaint and ' files Wyoming. Dr. Jolin will assess and customer service standards and provide advice during negotiations. Joseph Van Eaton, specializes in representing local governments and non- profit groups on a broad range of communications and anti - trust- related matters. His work has involved representation of communities in cases involving First Amendment and antitrust challenges to local franchising authority. He filed one of the first post 1984 Cable Act petitions which i I service lea the chief egaltadvise9 to the basic cable service rates. Mr Van Eaton franchise renewal process. The Buske Group's consulting engineer, Clifford Schrock, specializes in providing telecommunications engineering support to local government and public agencies. The firm has assisted many municipal governments, including Seattle and Thurston County, Washington, in refranchising cable television systems, proof of performance testing and design review. Mr. Schrock is also an expert in institutional network applications in the video, voice, data and telemetry areas. The Buske Group's opinion polling experts, Jan Lesher and Tom Wilson, have a unique blend of expertise in polling, governmental affairs and public policy. Ms. Lesher has been involved in cable communications since 1979, having worked as a cable regulatory officer for the City of Tucson, Arizona; as Vice President of a major MSO, and the Executive Director of a nonprofit public access management organization. She served as a member of the International City Management Association Telecommunications Task Force and the US Conference of Mayors Cable Task Force. Mr. Wilson has many years of experience in the field of public opinion polling. He was an Aide to the Mayor of Tucson, with responsibilities such as research, analysis and formulation of appropriate policy recommendations on all aspects of city government. Prior to his work with the City, Mr. Wilson served as Research Director for the largest full service advertising agency in Arizona. 25 If informal negotiations fail, it will be necessary to prepare an RFRP in order to solicit a proposal from Falcon Cable under the formal renewal provisions of the Cable Act. Based upon work done during the renewal process, The Buske Group will draft an RFRP, advising Falcon Cable . of the services and technical requirements that the jurisdictions are seeking. The RFRP will require the cable operator to provide specific information regarding its customer services, technical standards, proposed upgrade or rebuild of the cable system, programming category options, public, educational, and government access, and its other cable - related offerings. As part of the RFRP document, cities frequently include a copy of the proposed franchise agreement with a request that the cable operator indicate any comments it may have regarding the proposed franchise agreement. We propose to follow this procedure. • • . : . -- The Buske Group team will analyze the renewal proposal received to determine whether the proposed cable service would: • Satisfy local needs and interests, including PEG access. • Provide maximum benefits available under local, state, and federal law. • Provide user - friendly equipment. • Provide state -of -the art technical equipment and resources. • Ensure good service and provide for enhanced services and technological improvements. • Be feasible in light of Falcon's technical, legal, and financial capabilities. • In all other respects provide satisfactory cable service to Morgan Hill citizens. The team would then consult with the City, explaining the strengths and weaknesses of the renewal proposal. 26 Deliverables.. The Buske Group team will provide written recommendations on all essential elements of the franchise and prepare initial drafts of the Cable Communications ordinance and franchise agreement. If it becomeere necessary to issue an RFRP, the that document and evaluate the consulting team will prep proposal submitted by the cable operator. The consultant will assist the Morgan Hill Group in the conduct of its negotiations with Falcon Cable. The negotiating budget which has been prepared anticipates either ten one -day or five two -day negotiating sessions with Falcon, and preparation of necessary documents summarizing the results of the negotiation meetings. 27 Ill. BUDGET AND FINANCIAL TERMS AND CONDITIONS Cost projections for the franchise renewal process are based upon a "menu" approach. This permits the Morgan Hill Group to determine which tasks it wants to be provided by The Buske Group. We have prepared projections for doing the work outlined in this proposal and estimate that the work can be completed for a fee ranging from $129,259 to 8145,046, depending upon the amount of attorney time utilized. However, if Falcon Cable is uncooperative and /or the Morgan Hill Group must complete the formal renewal process as outlined in the Cable Act, we estimate the cost to be somewhat higher. The proposal described herein anticipates that the jurisdictions represented in the Morgan Hill Group will formalize their relationship as a Joint Powers Authority or agree to some type of Memorandum of Understanding shortly after selecting a consultant. This is a very important assumption. If this does not happen, the number of meetings that the consultant must attend during certain phases of this project may increase significantly. In that event, it will be necessary for us to revise the cost estimates on this project. The Morgan Hill Group may discover during the franchise renewal process that they would like work performed that was not anticipated in the RFP. We would be happy to provide such assistance. It would be billed at the hourly rates described below. The high level of skill and experience of team members will ensure that the hours we spend on this project will be effective. The costs associated with the project may be lower if the City should decide to limit its review of certain areas, or to perform the review itself. Some or all of these costs may be recoverable from Falcon Cable if the City devotes sufficient resources to preparation at the beginning of the renewal process. We have prepared a budget which contemplates participation by designated City /County staff and Attorney(s). We would be pleased to assume a greater or lesser role if the Morgan Hill Group wishes. The estimated hours and costs for each task of the project are set forth in the proposed project budget on the next page. The cost projections assume that we will be working closely with City /County staff and Attorney(s). Please see the notes following the budget which explain certain assumptions used in our estimates. 46 In order to provide the Morgan Hill Group some assistance in planning the renewal process based upon our understanding of the current cable environment, the expiration date of the Morgan Hill franchise, and a sensitivity to cost, we suggest the following schedule (based upon our assumption that the City /County works on a July 1 - June 30 fiscal year basis): Fiscal Year 94/95 Phase 1 Phase 2 (Tasks A, B, C) Fiscal Year 95/96 Phase 2 (Tasks D, E, F) Phase 3 The RFP indicated a desire on the part of the Morgan Hill Group to have a estimate of the amount of staff time necessary to assist the consultants in this process. We would estimate that over the term of the project, a total of 25% of a full time person would be required. This would and include C' combination Attorney(s) etime. intermediate level management, City Manager, City/County This time would have "peaks and valley" with very small amount of time required at certain times during the process and more significant amounts of time required at other points. We estimate that during the process of conducting community focus groups and again during negotiations, the staff time consumption would be at its highest levels. 47 PROPOSED PROJECT BUDGETI Task Consultant12) Prof. Hours Fees Costs Total PHASE 1 A. Review Franchise, Buske 55 $4,125 $600131 $4,725 Develop Renewal Plan, Van Eaton 27 $4,860 585 $9,585 , $9 Prepare Responses Explore JPA PHASE 2 A. Technical Audit Schrock 120 $9,000 $1,125(3) $10,125 Buske 30 $2,250 $2.250 $ 12,375 B. Review Past Performance 1. Franchise Compliance Buske 100 $7,500 $500(3) $8,000 $3,600 Van Eaton . 20 $3,600 2. Franchise Fees Buske 10 120 $750 $10,200 $100(4) $200 $850 $10,400 Jolin 3. Financial Review Buske 5 40 $375 $3,400 $ 1,125(5) $375 $4,525 Jolin 4. Customer Service and Buske 50 $3,750 $450131 $4,200 Complaints & Customer VanDalsen 30 $1,950 $1,950 Service Standards Option 1: Customer Satisfaction Survey Wilson /Lesher (470 interviews @ $16.00) $7,520 $80016) $8,320 5. Review PEG Access Buske 50 $3,750 $250(4) $4,000 C. Identify Community Needs and Interests(6) 1. Organize and Buske 80 $6,000 $750131 $6,750 Conduct Workshops 2. Identify System Buske 30 $2,250 S300(4) S2,550 Design Needs Schrock 5 $375 D. Develop Franchise Van Eaton 84 $15,120 $400(4) $100(3) $15,520 $2,350 and Ordinance181 Buske 30 $2,250 48 PROPOSED PROJECT BUDGET (continued) PHASE 3 (10) A. Prepare for and Conduct Negotiations O i (an Faton in all 1. Negotiate and Advise During Negotiations Consultant12) �Of' Hours Fees Costs Total Task 5. Evaluate Proposal Price Quote Provided Upon Request E. Evaluate Structures Buske 50 $3,750 $3,600 $400(4) $300141 $4,150 $3,900 for Ongoing Reg. Van Eaton 20 F. Prepare Final Report Buske 50 $3,750 $300 $4,050 and Presentations PHASE 3 (10) A. Prepare for and Conduct Negotiations O i (an Faton in all 1. Negotiate and Advise During Negotiations negotiations) Buske 145 $ 10,875 Van Eaton 111 $19,980 $ 1,000(3) $ 11,875 $6,000(31 AM 855 • r ten adykas 2. Negotiate and Advise During Negotiations but not at all negotiations 1 Buske 180 $13,500(10) Van Eaton 40 $7,200 $1,000(3)$14,500 $2,000(3) S9.2 $23,700 0 (Optional) If Informal Negotiations Fail: 4. Prepare RFRP Price Quote Provided Upon Request 5. Evaluate Proposal Price Quote Provided Upon Request FOOTNOTES: 1. The project budget anticipates the consultants using telephone conference calls to participate in routine meetings of the meetings cities. he project costs would have tt the consultant to ac omodate travel present for routine meet g time and travel expense reimbursement. 2. Fees are estimated 65 /hour; hourly basis: n $180/hour. $75/hour; John may Sbe performedrbyk Van Dalsen $ lower cost personnel working under supervision of principal team members. 3. Includes travel, lodging, meals, and associated costs such as clerical, telephone, postage. 4. Clerical, phone, and postage. 5. Footnote-4 applies except that if Falcon Cable is cooperative, no travel land associated costs) will be necessary for Mr. Jolin. 6. Additional long distance charges. Jurisdictions to notify Buske Group as to preferred approach to surveying. 7. 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