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HomeMy WebLinkAboutIII(F) Approval And Authorization For The Mayor And City Clerk To Execute The Cable Television Franchise Fee Audit With Lewis And Associates Agenda 2-17-98 Item III F "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER S. SCOTT VANDERGRIFT Ocoee COMMISSIONERS Q\ \ CITY OF OCOEE� •� 1� DANNY HOWELL SCOTT ANDERSON P"` 150 N.LAKESHORE DRIVE SCOTT A.GLASS 0 OCOEE,FLORIDA 34761-2258 NANCY J.PARKER c' ! ` v (407)656-2322 �4.1. +' J�Z CITY MANAGER 44.4) ELLIS SHAPIRO Of GOO' Staff Report Date: February 10, 1998 To: The Honorable Mayor and City Commissioners From: Ellis Shapiro, City Manager Wanda Horton, Finance Directof Janet G. Resnik, Community Relations/Projects Director • Subject: Cable Television Franchise Fee Audit Issue Should the Honorable Mayor and City Commissioners authorize City staff to enter into a contract with Lewis And Associates for the purposes of a cable television franchise fee audit, for a fee of$4,999.00 plus out-of-pocket expenses such as travel and long distance telephone calls? Background Recently, the City of Ocoee received a request to transfer the cable television franchise from Cablevision Industries of Central Florida, Inc. to Time Warner Entertainment-Advance/Newhouse Partnership. City staff met with Ila Feld of Leibowitz & Associates, the City's special counsel for cable television matters, to review this request. The issue of the franchise transfer will come before the City Commission on March 3, 1998; however, in discussions with Ms. Feld on related matters, it was suggested that the City consider performing an audit of the franchise fees paid to the City from January 1, 1995 to December 31, 1996. Discussion Ocoee has never performed an audit to determine if the City is receiving what it should under the franchise agreement. Staff and the City's special counsel believe it would be in the best interest of the City to verify this information. If the City finds a discrepancy, collection would be negotiated with the cable company. Recommendation Staff respectfully recommends that the Mayor and City Commissioners authorize the attached contract with Lewis And Associates. Funds are available in the General Fund contingency which has a current balance of$109,000. cc: Scott Lewis,Lewis And Associates Ila Feld,Leibowitz&Associates Diane Pickett,Time Warner Communications 8� ,. to l: •:.5%, ,E 7, ® "' yy � ES - _ • . 2131 Hollywood'Boulevard,Suite 208•Hollywood,.Florida 33020•.Phone/Fax::(954)922-9002 . February 4, 1998 , • • Mayor S. Scott Vandergrift .. : City of Ocoee 150 N"Lakeshore.Dr. • = : Ocoee,Florida 34761 .. -Dear Mayor Vandergrift: • • • , • • • . , • • .. ::This lett • er is to set forth'the Agreement of the City of Ocoee'to retain the firm of Lewis'&:.• Associates"for-the purpose of representing the City in the area of cable television franchise :':' • . "fee compliance verification covering the two year period beginning January1, 1995 and.. ' ending 31, 1996. In connection with this engagement, the services to•be • performed.are as follows: '. ' • . . 1:. Ascertain•what specific sources of revenue are subject to . ' franchise fees by reviewing franchise agreement. • • , 2. •On-site visits to franchisee to obtain and examine relevant • -. accounting data and•supporting documentation.' • . •. :: .- 3. Identify all revenue sources by classification,:verify"calculations and vouch to • . supporting documentation. .Evaluate allocation methodology with respect to ' non-subscriber revenue and conduct search for unreported revenues. • 4.. Examine the cable operator's billing system to determine if all.addresses ' :;. - • within•the specified franchise area were included in the franchise fee remittances: • 5. Recalculate the revenue and franchise fee due the City using the approved • - - • • • effective rates.and compare to actual amounts reported. • 6. Issue report summarizing and explaining our findings within thirty days from the date that cable television operator provides the requested"information..: ., ' • 7.. Assist City in negotiating financial settlement with cable'operator - • • We will require the City's assistance in the following areas: . . ' • 1. Provide Lewis &Associates with a letter of authority, appointing Lewis &Associates as: . • :• • ..the City's•agent in this matter. ' - :. _ •. • 2. Provide copy of franchise agreement.and related'ordinances.'_: ': 3. Provide copies of franchise fee remittances covering the period under examination: ":: ';: :... • • .•.::4. Provide listing of.zip codes and hard copy listing of street addresses located-within.the • - City's franchise area. ' • .• . ' - • . 5: Provide verification of specific addresses which contain the above zip codes'but are not :• :_ • : reflected"in franchisee remittances..'Lewis&Associates will extract this data from the • - cable operator's records. • For services rendered,in connection with the scope of this assignment we will charge$4,999 • ' _ •-plus out-of-pocket costs. The fee is payable as follows:: . ' = • •s $2,500 Upon Signing Agreement •• • $2,499 Upon Delivery of Report Summarizing Findings ': = • • Out-of-pocket costs include expenses such as travel,long distance telephone calls, air : - : • express charges, photocopying etc.=We will provide receipts and,other documentation in • support of these charges. Such costs will be billed upon conclusion of the examination and are payable fifteen days after receipt of invoice. -• • :If the foregoing meets'with your approval, please so indicate by signing this letter here . • indicated and returning an executed copy to our office for our records; :=:. We look forward to working with you and the other City-Officials on this interesting . • . project. : •• Sincerely,. ,o :. ' Cott Lewis President . .. The undersigned, being the duly authorized, hereby accepts this agreement. • • • By: • Mayor S.'Scott Vandergrift• • • • • City.of Ocoee. • • • • -IN.WITNESS WHEREOF, the parties hereto•have made and'executed this Agreement on • the date below•written for execution by City. •ATTEST: • • • (CORPORATE SEAL) `.' Date:: - .: APPROVED: r • CITY OF.00OEE ATTEST: Jean Grafton, City Clerk S. Scott Vandergrift,Mayor (SEAL) FOR USE AND RELIANCE:ONLY APPROVED:BY THE OCOEE • BY.THE.CITY OF OCOEE CITY COMMISSION AT A • APPROVED AS TO FORM AND MEETING HELD ON LEGALITY, this '• _ day of , 1998 1998 UNDER AGENDA ITEM • FOLEY AND LARDNER • City Attorney..