HomeMy WebLinkAboutItem #31 - Discussion ItemCITY OF MIAMI, FLORIDA 29
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and Members
of the City Commission
"!
FROM: Edward 9
City Manager
DATE: September 9, 1997 FILE
SUBJECT: Request for Monthly
Report on Status of Cable
TV Franchise
REFERENCES:
ENCLOSURES:
As per your request, the City is pursuing two courses of action in regard to the City Cable
TV franchise: the formal renewal process of the Miami-MTCI (MTCI) franchise in
accordance with 47 USC § 546A and a Request for Proposal to solicit additional cable
TV providers.
An update to the summary presented at the July 24, 1997 Commission Meeting of the
actions occurring as part of the MTCI renewal process follows.
1
4
The Honorable MayoIW Members
of the City Commission
Request for Monthly Report on Status of Cable TV Franchise
September 9, 1997
Page 2
Date
May 6, 1997
•
Action
MTCI received a letter from the City invoking
the formal renewal process and
indicating timeframe for completion of
components of formal process.
May 6, 1997 MTCI received a letter from the City outlining
results of external audit performed by
Rachlin, Cohen, and Holtz and requesting a
response within 10 days.
May 7, 1997 City Commission passed a motion extending the
MTCI cable TV franchise on a month -
by -month basis.
May 16, 1997 City received a letter from MTCI stating
disagreement with findings of external
auditors and recommending meeting to discuss
differences.
May 21, 1997 MTCI was obligated to submit to the City an
updated response to the renewal questionnaire (no
later than fifteen (15) days from May 6, 1997).
NOTE: MTCI submitted incorrect questionnaire
on this date. City faxed correct questionnaire
to MTCI on May 23, 1997. MTCI indicated FAX
was not received; sent messenger to pick up 6/4/97.
MTCI committed to update questionnaire by June
17. On June 17, MTCI committed to update
questionnaire by July 1. Updated questionnaire was
hand delivered to City on July 1 and a copy was
mailed to Leibowitz and Associates on July 8
(received on July 11).
May 21, 1997 City sent letter to MTCI requiring the
submission of documents supporting position in
disagreement with City external auditors as
outlined in May 16, 1997 letter.
9 7 - ' --- ---
The Honorable Mayor Omembers •
of the City Commission
Request for Monthly Report on Status of Cable TV Franchise. T
September 9, 1997
Page 3
Date
Action
May 22, 1997 City Commission passed an ordinance extending the
MTCI cable TV franchise on a month -by -month
basis.
May 30, 1997 MTCI was required to submit documents
supporting position in disagreement with City
external auditors as outlined in May 16, 1997 letter.
NOTE: MTCI submitted required documents.
June 17, 1997 Meeting was held with City, MTCI, legal
counsel (Leibowitz and Assoc.), external auditors,
and internal auditors to discuss financial
disagreements. MTCI agreed to schedule technical
presentation to the City to discuss how MTCI plans
on fulfilling the needs of the City. Outstanding
financial items include audit findings (external and
internal) and $825,000 credit previously settled in
an agreement between the City and MTCI by
Resolution 88-711. MTCI responded back to
Leibowitz and Assoc. on July 7 verbally that they
were still in disagreement with these items.
Leibowitz and Assoc. responded in writing
requesting a written legal opinion from MTCI by
July 11.
July 25, 1997 Letter was received from MTCI reiterating their
disagreement on the credit of $825,000 credit as per
Resolution 88-711.
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97- 655
The Honorable Mayo& Members is
of the City Commission
Request for Monthly Report on Status of Cable TV Franchise
September 9, 1997
Page 4
Date
Action
August 6, 1997 MTCI presented their technical system upgrade
strategy to the City and the City hand delivered
a financial violation notification to MTCI based on
the July 25 response from MTCI and requesting a
response within 15 days.
At this time, the City also began assembling the
legal and procedural preparation to move toward
potentially impaneling an arbitration board to
review the financial dispute.
August 15, 1997 City sent MTCI a letter citing them on technical
violations previously identified in the external
technical audit as well as violations resulting from
an internal cable plant survey performed in March,
1997 and then subsequently reverified in August,
1997.
August 19, 1997 City ascertainment report was hand delivered to
MTCI. This report reviewed the history of the
MTCI franchise and analyzed in detail the .financial
performance of MTCI based on internal and
external financial audit results, the technical
performance of MTCI based on internal and
external technical audit results, concerns regarding
MTCI technical system upgrade strategy, and the
ability of MTCI to service the present and future
needs of the community, particularly the support
of public/educational/ governmental programming
requirements. This report found MTCI to be
generally deficient in responding to the needs of the
City. This report was distributed to the Mayor and
each member of the Commission.
The Honorable Mayor *Members
0
of the City Commission
Request for Monthly Report on Status of Cable TV Franchise
September 9, 1997
Page 4
Date
Action
August 22, 1997 MTCI sent a response to the August 6 financial
violation letter restating their dispute, but offering
to restart franchise fee payments beginning with the
second quarter, 1997 and continuing forward while
the financial dispute is being reviewed.
August 29, 1997 City responded to the MTCI letter of August 22
regarding the financial dispute and concurring
with the restarting of franchise fee payments
beginning with the second quarter, 1997 and
continuing forward while the financial dispute is
being reviewed. The City is currently awaiting the
second quarter, 1997 franchise fee payment and
is expecting the third quarter, 1997 payment in
early October.
October 3, 1997 MTCI is to submit a formal renewal proposal to the
City (no later than forty-five (45) days from the
date of issue of City ascertainment findings).
October 13, 1997 City is to provide public notice of receipt
of MTCI proposal within ten (10) days of receipt.
February 10, 1998 City is to make a determination as to whether to
grant the franchise renewal or issue a
preliminary assessment that the franchise shall not
be renewed (must be done within one hundred
twenty (120) days of receipt of formal renewal
proposal).
6 97- 655
The Honorable Mayoo-d Members
of the City Commission
Request for Monthly Report on Status of Cable TV Franchise
September 9, 1997
Page 6
A summary of the events or actions occurring as part of the additional cable TV provider
RFP process include:
Date
Action
May 7, 1997 City Commission passed a motion requesting the
City Manager to solicit additional cable TV
providers through RFP process..
May 22, 1997 City Commission passed a resolution
authorizing the City Manager to solicit
additional cable TV providers through RFP
process.
October 20, 1997 City is to issue RFP for additional cable
providers -responses requested within
30 days.
November 18, 1997 Responses are due back from City RFP for
additional cable providers.
December 11, 1997 Presentation to be made to City Commission on
findings from RFP process for additional cable
providers.