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HomeMy WebLinkAboutStaff Report 6 03/05/2001 1 • CITY OF PETALCIMA,,CALIFORNIA AGENDA BILL • • Agenda Tltle"s Meeting Date: AT&T Audit Report • March 5,2001 Departmerit< ,Director: Contact,person:- Phone Number: City Manager Stouder g Beatty �' �_ • 707 778 4345 Cost of Proposal $30,000 Account Number 1400 Amount Budgeted: $30,000 Name of Fund: City Mgr . Attachments to+Agenda Packet Item Letter to Sue Levitin,'Director,Government Relations Executive Summary of Cable Franchise Audit Report , • Response from AT&T re: Audit Findings .. Summary Statement: The City Council authorized an audit of the Franchise Agreement between the City of Petaluma and AT&T regarding Cable Television Franchise `'Communications Support Group completed an extensive review of the Franchise Agreement:and of AT&T records in;the course of their audit. Mr. John Risk, President of Communications Support Group will.provide the Council with a full report of his findings. • Council Priority: THIS.AGENDAIITEM Is'CONSII)ERED To BE PART',OF, OR.NECESSARY To, ONE OR • MORE OF THE 1999:200W PRIORITIES`ESTABLISHED BY THEE'CITYiCOUNCIL ON JANUARY 30, 1999 AND MARCH 18,2000: Ptiority(s): n/a • Recommended City Council Action/Su ggested''Motion: F .�s`FL Accept the report from Mr Risk.. No further action needed,unless directed by the Council. Reviewed'by Finance Director: Reviewed bx City Attorney: Approve i ; City Manager: Date: ei 11 Date: "// 4 f► . ,O 2f!« /ol • Today's Date: ,Revision# and Date Revised: `pile "ode: February 5:. 2001 • • • • CITY OF PETALUMA, CALIFORNIA IVIAiteH`5, 2001 • AGENDA REPORT • FOR AT&T Cable Television Franchise,Audit°Report: • • 1. ExECUTIVE'SUMMARY: 'Last year the City Council requested an audit of the City's Franchise Agreement with AT&T for Cable Television. Communications Support;Group,,Inc , was`retained to conduct,the audit. Mr. John Risk, President, will provide the Cduneit with.a•report of his findings. 2. BACKGROUND: 'The City of Petaluma has a non-exclusive franchise agreement with AT&T'for local • cable television`service. The agreement,provides for five year'audits'ofthe franchise by thetCity, atlthe City's,option and expense. The City hired John Risk,.Communicatrons:Support Group, Inc., to conduct an audit ofthe'cable franchise. Mr. Risk;has completed hisaudit and isprepared to provide the Council the`results of his uigniries. 3. ,ALTERNATIVES: Accept the audit Direct additional work as may betdesired. • • 4. FINANCIAL IMPACTS: • This'audit`was undertaken to.determine if AT&T was,m'compliance with'thelprovisions of the Franchise •" Agreement:and making{appropriate:fee spa`yinents to the t City. Some underpayment of fees were=rioted. and subsequently;paid:to'the City in the amount of$1529.32. Mr. Risk has the opinion that some additional payment may appropriate based on some of his,findings: ;He will detail his:coriclusions in his presentation to you. 5. • CONCLUSION: . • It.appears thedAT&T'has beenlmaknrg appropriate payments to the City under the provisions'of the . Franchise Agreement, with the possible exceptiomof fees on}revenue from certairadvertising. 6. OUTCOMES OR'PERFORMANCE MEASUREMENTS;THAT WILL IDENTIFY SUCCESS OR COMPLETION:, Mr. Risk has completed the.requirementsof his`contract: • • 7. RECOMMENDATION: . • Accept the report from.ComnSUnications Support':Group, Inc:, regarding theCable Franchise-Audit. 'coni s/2000 Agenda'Bill revised 042100 4/ C \ C T� ' OF' H, AI��T1 POST OFFICE BOY 6T ' PETALUMI:A, CA 94953-0061 .... E.,C1arkThompson S'eptenibeI 20,.2000 -Mayor Janice Cader-Thompson Sue Levltin Jane Hamilton Director, G1vemment Relations Michael band Keller I)avid ]:eller AT&T Broadband &<InternetServices Matt Maguire 2055 Folsom @Streets Pamela:Torliatt �^ Counciimembert San Francisco, CA 941,10-1JJ0 SUBJECT: Franchise;Fee Audit Report Dear Ms. Levitin. , The City of Petaluma retained the'firm Communications Support Group, Inc. (CSG) to provide a variety ofconsulting services related to the fourth year review of AT&T's Petalumi Cable Franchise. Communications Support Group completed its report on September I, 2000. Please find the attached results of Our foiirdryear compliance`audit.report. IV We are aware-that AT&T has been involved in some extensive restructuringland has.lost or"reassigned several positions over the last - - several months.'We are, nevertheless, disappointed by AT&T's:lack of • responsiveness,to many of our requests for information and were forced to accept the report showing several items in potential non-compliance. We intend to present the findings:of this audit to the City Council at the November 20;,2000 City Council'meeting.,. We would hope•to_resolyethe outstanding_issues and would expect that l ,� � '_.. ••� --.•--- - - '-• . - • •-- AT&T would be willing;and;able to provide`the missing responses-io,Mra _1 1,),- -r ?#4. Risk's previous requests in the near future. . Please call;me to confirm receipt,of this:report and provide any comments: • to me in writing so that we;can include them in the presentition to the City • 'Council. If you can provide additional information that would clarify some of the outstanding issues, our preference would be to present AT&T English sheer • the best,light to the Council'an&to the community. . Petaluma, CA 9495? - - - . Coy Manager's Office Sincerely, • - • Phone (707) 778-4345 - ' Fax(707) 778-4419 • E-Mai! crtymyr(Tci pe(aluma ca us . Gene P. Beatty enera(Plan?Idministrarion Assistant City Manager • Phone(707) 778-4345 Fax(707) 778=4419- , . ErMail; . generalplan©ci.peraluma.ca.us• - - • • . . . . COMMUNICATIONS:SUPPORT GROUP; INC. 1499ICIESTGATE LANE PENNGR9VE:CA 94951 VOICE: (707) 795-8995, . FAX: (707) 795-6258 • if EMAit:ijri..5k@concentric:net ' • . . - ' 'EXECUTIVE SUMMARY . . . September 15, 2000 . .. • 1. PURPOSE: . • , ' . The City ofj.Petaluma. retained the firm CoMmunications Support GroLip,-.1he. (COG) to provide a variety of consulting services related',to the fourth year .reViaw of 'AT-8.T's Petaluma cable frandhise. . - . . , . . . Section 27.1 of the City's Franchise Agreement (Ordinance 1961. NOS ----Hadoeted ..154he ... 19, 199,5) calls for these four-year ;performance. reviews On May '15, 2000, the City engaged Communications Support Group Inc (CSC-) for the purpose, of conducting audits related to Section:27 1 . . . . . . . , Specifically,. Section 27.1 read.S: . • , • . . ,. . .. Four-yea hReview A. ;During the feats, which commence on the:fourth, eighth, and :twelfth ianniversaries of the effective date of the Franchise the City, mayicommence4a:review,of the iGiantee'S•performance • underlthe)ffranchiaV,AS part of this ii‘evieW the City mayoconsider:aFij„v+Thethei. the Grantee has complied with its obligations,under Frighohrsia:and,applicable ilaw* (2) whether Gusto-Thor service 'standerds, technicarthapdaftlS, Of berid orksectkitcy fund fequirethentS.iere•eadequate or excessive and(3) other issues asmay be raised byahe Grantee, the City, or theipubirc. . - B. The city may conduct public beelines to, provide the Grantee and theTtiblicibe:opportunity'tci i comment on the Grantee's performance and<Other issues considered "5s, part of The 'four-year . review. ' i i i • : ' • ci:: —,, i.if-hisifriiiejcort iproviidesiaiimmair,si.iol..fihditigs from the various .auditsdoerfnrined by'OSG' and presented in-a report te the City on September 1 , 2000.. Findings are — --- -- n'tha following four areas: - - ' 1) '' ,FreheriiSe Fee Audit Findings .(including reconciliation of fees paid for the peribel.kly 1, 1998.'throbditi tieOemberl,S1 , 19g9), • ,, . - . 2) Franchise Compliance AuditTindings 3) Additional items requested by City Council members at:the.Maylf.5, 2000 . . ; Council meeting. , .. . . .-- ... . • , 4') Technical Compliance.Audit:Firidin-gs • , . • Detailed information Can be found in CS&S 'comprehensive seport. Additiohally; separate support documentation is also contained in four exhibit binders accompanying • the comprehensive repOrt. . . . . • .. . . . . , • _ , . . . . . , ' Exet utive.Surrimary Communications support Group, Inc. g2000 P5Pia T iof 6 . . . . .