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Home My WebLink AboutM-89-0920TO : mom: Cesar H. Od i o City Manager The Honorable Mayor and Members of the City Commission .l CITY OF MIAMI, FLORIDA INTER- OFFICE MEMORANDUM mum: JUL 3 1989 SUBJECT : Miami TCI: Disconnect • Po 1 I cy- -Ord . Amend - 7/13/89 Comm. Meeting FILE: REFERENCES : l tem *33 Deferred from 1/13/89 Comm. Meeting ecumwRES :Correspondence $ackcroun, Miami Tele - Communications, Inc., the Cable TV Ilcensee, has requested that Agenda Item *33 (or " *30 "), a Proposed Amendment to the Cable Television License Ordinance, deferred by Motion No. 89 -31 from the January 13, 1989, City Commission meeting, be placed on the Agenda for July 13, 1989 City Commission meeting. This proposed modification to the existing cable license ordinance will change the minimum number of days a cable television subscriber Is given notice by the licensee of the Intent to disconnect from forty -five (45) days to thirty (30) days after the due date of the delinquent fee or charge. Motion No. 89 -31 deferred the item until: 1. An investigation and report be received by the City Commission concerning TCI's Minority Participation Initiative; 2. Cable for the Sports Arena Is In place; 3. The City can have finalized negotiations for the Sports - Channel. (Commissioner DeYurre requested a final response on the negotiations for the SportsChannel.) 1 Minority Buslnesg Enterprise eArtLcJ atIon Section 1108 of the cable license ordinance requires reasonable and good faith efforts by the licensee to procure from or use qualified minority business enterprises for twenty (20) percent of the total dollar amount of any and all contracted expenditures by the licensee (excluding factory direct purchase terms or Items purchased from a sole source of supply), with the 20 percent equally allocated among black and Hispanic minority business enterprises. • In his letter dated March 18, 1989, Mr. Anthony Bello, System Manager, (attached) states that In 1988 the total dollar amount of all contracted expenditures by Miami TCI (as defined in Section 1106 of the license ordinance) was $1,707,291. Of this amount, $431,782 went to local minority businesses. Calculated as a percentage of the total do l t.ar amount, the total amount of minority participation Is 25.3 %. Year % Black Participation % Hispanic Participation The Honorable Mayor and -2- Members of the City Commission Total Expenditures Total Expenditures with Minority Businesses % Minority Business Enterprise Participation 3. Sports Arena Cable Serv)pp With regard to the allocation of participation to black and to Hispanic firms, 100% of the company's purchases from minority businesses were from local Hispanic businesses. The table below compares minority business enterprise participa- tion for the past three years (as reported by the cable company): (Miami Cablevlslon) (Miami TCI) 1986 1987 1988 $1,032,189 $2,159,542 $1,707,291 410,643 572,753 431,762 39.7% 28.5% 25.3% 15% 2% 0% 85% 98% 100% Because there are discrepancies between the amounts and the names of the companies listed In Mr. Bello's letter and the amounts and the names of the minority companies listed in the business participation reports filed each quarter In 1988 by Miami TCI, it Is necessary to independently verify the amounts. Miami TC submitted a certified audited statement for 1988 on June 1, 1989, but it did not Include the schedules breaking out CATV plant and SG&A expenses. Because line item expenditures are given In.these schedules, they are useful In verifying minority business participation compliance -- but are presently not available. Miami ICI has been requested to furnish these certified audited schedules. by August 10, 1988. The Office of Minority /Women Business Affairs attempted to contact ten of the companies listed to verify the amounts. Only one agreed with the amount. Of the others, some did not respond, others were now out of business, and two disagreed. The City of Miami Internal Audits and Reviews Department has been requested to conduct an on -site audit of Miami TCI to verify the amounts spent with local minority businesses. Mr. Bello has pledged full cooperation by Miami TC1 with the City's auditors. The cable to,the Sports Arena Is In place. and Miami TCI is providing service to that facility, CHO:MSS The Nbnorable Mayor and Members of the City Commisslon 3. SoortsChannei Neaotlations. -3- Tele- Communications, Inc., the parent company of Miami TCI, negotiated with the SportsChannel for several months concerning Its carriage. TCI believes that the cost of providing Sports- Channel as a basic service would be unduly burdensome to subscribers that are not Interested in more sports programming. Further negotiations to carry SportsChannel as a pay service for those subscribers who wanted to pay five or six dollars a month extra for It, also fell through due to contract restrictions with the sports teams. Miami TCI has submitted a request to Its Board of Directors to carry the Sunshine Sports Network. Mr.•Bello states that he Is, at this time, "99.9% sure that at their next meeting this will be approved, and should be on the system as a basic service this summer. " March 16, 1989 Ms. Merry Sue Smoller Cable Communications Administrator City of Miami 2850 Tigertail Avenue, 2nd Floor Miami, FL 33133 MIAMI TELE- COMUNICATIONS, INC. CA L.:L:1 C.1306 NORTHWUT r AVENUE MIAMCROXIDAM Dear Ms. Smoller: Pursuant to your March 3, 1989 letter concerning Miami Tele- Communications, Inc.'s compliance with minority participation, below is a breakdown of eligible expenses. Pease note that minority enterprises participated at 25.3% of • MTCI's discretionary expenses. ELIGIBLE ACCOUNT CONTRACT LABOR $1,227,857 $163,153 (A) MARKETING COSTS 147,318 40,301 (B) VEHICLE EXPENSE 76,462 42,480 (C) OFFICE SUPPLIES & EXPENSE 99,039 83,516 (D) JANITORIAL SERVICE 23,147 23,147 (E) OPERATING SUPPLIES 7,745 3,205 (F) MAINTENANCE MATERIAL 20,695 7,430 (G) UNIFORMS 386 0 BAD DEBT COLLECTION 68,530 68,530 (F) ,LEGAL AND ACCOUNTING 23,214 0 FREIGHT 12,898 0 $1,707,291 $431,762 MINORITY FIRMS (A) FREEDOM COMMUNICATIONS - HISPANIC (B) DEVELOPMENT OF MARKETING - HISPANIC MULTI COMMUNICATIONS - HISPANIC PUBLITEC - HISPANIC (C) ORIOLES GULF - HISPANIC (D) A & C STATIONERS - HISPANIC JUAN HERNANDEZ CONSTRUCTION - HISPANIC NATIONAL GUARD •- HISPANIC DOMUS CONSTRUCTION - HISPANIC (E) WELCOME CORP. - HISPANIC (F) VARTA BATTERIES - HISPANIC (G) GANCEDO LUMBER - HISPANIC (F) AMAG COLLECTION - HISPANIC . TOTAL EXPENSE MINORITY PORTION Ms. Merry Sue Smoller . page 2 March 16, 1989 • Anthony Bello System Manager AB:mg if you have any questions - , -- - please_ .do . not .hesitate to contact me._ Sincerely, MIAMI TELE - COMMUNICATIONS, INC.