Loading...
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. 4 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.