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HomeMy WebLinkAbout14.B. Consulting Contract-I-Net/Cable Franchise Oversight 1~f3 , CITY OF SHAKO PEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Consulting Contract - I-Net/Cable Franchise Oversight DATE: May 10, 2005 INTRODUCTION: The Council is asked to enter into an agreement with Bradley & Guzzetta, LLC, for the provision of institutional network and cable franchise oversight services for the City. BACKGROUND: Elsewhere on the agenda for May 17th is action regarding a recommendation from the Telecommunications Commission to restructure staffing for telecommunications support. As part of that, a new position is proposed that would have more of an emphasis on administration and policy. Regardless of what action the Council takes on that recommendation, there will continue to be a need to address questions regarding cable franchise and institutional network issues by the City. These are both legal and/or technical issues, and it is unlikely that the Telecommunications Coordinator position applicants will be well-versed in those issues, in addition to those in the job description. For that reason, the Telecommunications Commission recommends that a consultant be retained. Because of her work with the Shakopee Institutional Network System, a proposal was solicited from former Assistant to the City Administrator Tracy Schaefer, and her current employer Bradley & Guzzetta. Because of her experience and knowledge ofthe Shakopee system, it will be more cost effective to have her involved with I-net issues, rather than to find a different consultant and train them. Regarding franchising issues, Bradley & Guzzetta offers the benefit of working with several municipal cable television franchises throughout the Twin Cities, and as a result there can be "quantity discount" effect by going with Bradley & Guzzetta. , Currently the City has Bradley & Guzzetta on a retainer to provide cable television, I-net, and franchising consulting services. Assuming that the Council is in agreement with the recommendation made by the Telecommunications Commission, the retainer contract with Bradley & Guzzetta can be terminated upon the hiring ofthe Telecommunications Coordinator position. BUDGET IMPACT: The current retainer with Bradley & Guzzetta is $3,270 per month, and provide comprehensive cable, I-net, and franchising support. The new contract would go to an "as needed" basis, at an hourly rate. In the case of a franchise transfer, the City should be able to get reimbursement from, Time Wamer for legal costs expended during the franchise transfer process. Note that funding for these services would come from the Telecommunications Fund, and not the General Fund. RECOMMENDATION: The Telecommunications Commission and I recommend that the City enter into an agreement with Bradley & Guzzetta for the described services. ACTION REQUIRED: If the Council concurs, it should, by motion, authorize the appropriate City officials to enter into a contract for the provision of cable franchise and institutional-network oversight services for the City of Shakopee. ~W.J1J Mark McNeill City Administrator MM:th , ./ .' ,,' Proposal to Provide Cable Franchise & I-Net Oversight Services for the City of Shakopee Submitted to: City of Shakopee Mayor & City Council Mark McNeill, City Administrator 129 South Holmes Street Shakopee, MN 55379 Respectfully Submitted by: Bradley & Guzzetta, LLC Ms, Tracy J, Schaefer, Senior Project Manager Bradley & Guzzetta, LLC 950 Piper Jaffray Plaza 444 Cedar Street Saint Paul, MN 55101 P/651-379-0900 F/651-379-0999 May 4, 2005 . ~ Introduction - Than ' you for asking Bradley & Guzzetta, LLC to prepare a proposal to provide cable franchise and I-I et oversight services for the City of Shakopee (the "City"). Bradley & Guzzetta, LLC ("B&~") believes that our firm can assist the City of Shakopee with its cable franchise and I-Net oversight needs by providing expert consultants while keeping the costs low. By engaging B&G in a tdchnical, legal and administrative capacity, the City will save money, while continuing to move forward with its important telecommunications goals & objectives. Municipal Telecommunications Administrative Experience B&G Is based in Saint Paul and is the only firm that serves as both the telecommunications consu tant and legal counsel for cities cable television franchising authorities in the Twin Cities metrortan area. B&G has experienced staff dedicated to assist municipalities in cable and teleco munications regulation, planning and budgeting. Tracy Schaefer, Senior Project Manager, (former Shakopee Assistant to the City Administrator) will bi the city's main cable franchise and I-Net oversight services contact. However, as needed, Steve Guzzetta, attorney, and Michael Bradley, attorney, can both provide legal teleco~munications support. Richard Nielsen, Senior Engineer, will provide cable and I-Net techni al support to the City of Shakopee. Mr. Guzzetta is a former Telecommunications Commissioner and current Shakopee resident, so he has a thorough understanding of current and past Shakopee telecommunications issues. Mr. Bradley has served other cities and cable franc1sing authorities in the role of telecommunications administrator. Mr. Nielsen has over 20 years I f experience managing, designing and upgrading cable systems and I-Nets. Cable Franchise and I-Net Oversight Responsibilities 1. General day-to-day cable franchise administration including, but not limited to: reviewing cable franchise fee revenues, franchise transfer review, customer complaint, franchise compliance issues, coordinating any professional services needed in conjunction with the cable franchise, review of any competitive franchises. 2. Annual cable franchise compliance audit. (i.e. terms and conditions agreed to in franchise are being upheld. This does not include a cable franchise financial audit.) 3. Serve as liaison between Time Warner, Finance Department, and Public Works/Engineering to ensure timely payment of permit fees, franchise compliance, I BRADLEY & GUZZETTA, LLC Page 1 m'il PROPOSAL TO PROVIDE CABLE FRANCHISE & I-NET OVERSIGHT SERVICES Bradley.J1" I v Guzzetta, l.LC . . and customer service issues. 4. Dedicated phone number to handle all cable-related questions and complaints from cable subscribers in the City franchise area. Resolve all complaints with Time Warner in a timely manner. Complaints will be logged as to name, address, phone number and e-mail address. 5. Dedicated e-mail address to allow cable subscribers to e-mail questions and complaints. 6. Available by phone or e-mail during city business hours. 7. Dedicate staff that is committed to cable television and telecommunications matters. 8. Dedicate staff to address Institutional Network issues. 9. Serve as city's contact person for Joint Powers Agreement, INET expansion and/or issues, monitor and manage contractors related to city's INET and review any related basic service INET contracts. 10. Prepare any RFPs and/or contracts in relation to I-Net or cable franchise agreement. 11. Prepare regular or as-needed written or in person briefings for City Council and primary staff contacts. 12. Prepare options and recommendations to the Commission (in consultation with the primary staff contact). 13. Attend Telecommunications Commission meeting and City Council meetings, as needed. 14. Attend city/county department meetings as necessary with City staff. BRADLEY & GUZZETTA, LLC Page 2 II PROPOSAL TO PROVIDE CABLE FRANCHISE & I-NET OVERSIGHT SERVICES Bradley&- Guzzetta, ttC . . Municipal Cable Legal Experience B&G I as founded by Michael R. Bradley and Stephen 1. Guzzetta to represent municipalities in cable and telecommunications and municipal matters. B&G represents a wide variety of muni~iPal clients ranging from large cities to small cities to municipal joint powers commissions. B&G also represents several access television non-profit organizations. Representative clients include Lansing, MI, Urbandale, Iowa, West Des Moines, Iowa, Minneapolis, Minnesota, Okla~oma . City, Oklahoma, Philadelphia, Pennsylvania, Nashville, Tennessee, and Lincoln, Nebrai~k~. B&G also represents a majority of the Twin Cities suburban cities and cable C01SS1008. B&G assists local governments in enforcing their property rights and franchising authority before state and federal courts, the Federal Communications Commission ("FCC"), and state publi9 utility commissions. B&G recently had a major victory at the FCC in favor of local governments that "made clear that the open video system certification process does not usurp the autho~ty of local governments to control use of the public rights-of-way." B&G has also recentl y litigated successfully Section 253 telecommunications franchising authority, and cable modef service issues. B&G also assists local governments in drafting rights-of-way, telecormunications, cable and open video system franchises/ordinances and zoning and siting ordinances concerning cellular, PCS and 3G facilities. Experiences in cable television law include franchise renewal, franchise transfers, competitive franC~iSing, rate regulation, customer service disputes, franchise noncompliance litigation, PUbliCI' educational, and governmental access policies, defamation and Constitutional issues. B&G also assists local governments in the review and advocacy of legislation, including legisl~tive testimony. B&G has assisted in thwarting many attempts to limit or eliminate local franc ising authority over the years. Proposed Legal Services 1. General cable franchising legal issues. 2. General PEG legal issues. 3. At minimum annual, PEG Policy Review. 4. Bylaws and Joint Powers Review. 5. Report to City Council as needed. I BRADLEY & GUZZETTA, LLC Page 3 ,\1 PROPOSAL TO PROVIDE CABLE FRANCHISE & I-NET OVERSIGHT SERVICES - . 6. Assist Shakopee and its Joint Power Agreement affiliates, Shakopee School District and Scott County, on basic Interconnection and Institutional Network issues and agreements. 7. Correspondence and phone conferences with staff, Commissioners or Council members concerning general franchising issues. 8. Prepare legal memoranda to Telecommunications Commission, City Council and staff as necessary (except for memoranda related to uncovered legal services listed below). 9. Noncompliance issues up through drafting notice of violation to franchisee. 10. General Resolution Drafting. 11. Transfer reviews, 12. Purchasing/biddinglRFP issues or review of cable franchise, general telecommunication issues and I-Net. 13. Competitive franchise applications 14. Legal research, ordinance drafting 15. Rate reviews 16. Communications and PROW ordinance review 17. Noncompliance issues following notice to franchisee, 18. Legislation drafting 19. Lobbying 20. Wireless ordinance review 21. Contract drafting BRADLEY & GUZZETTA, LLC Page 4 II PROPOSAL TO PROVIDE CABLE FRANCHISE & I-NET OVERSIGHT SERVICES Bradley&- Guzzetta, u.c . 21. Any adversary, administrative, legal hearings (local, MNPUC, FCC, District or Appellate Court, etc.), real estate, construction, or bonding. 2. Most of the services not included are services that we are typically able to split with other cities and cable commissions in the Twin Cities area, saving the City thousands of additional dollars. Additionally, some fees are directly reimbursed to the City, such as in transfer proceedings. Typically the items not covered occur infrequently. Proposed Fees In c~sideration of the services to be performed as outlined above, B&G proposes that the City pay I&G hourly fees to be solely paid out of the cable franchise fees paid by Time Warner. The contract would be for an initial one year period, expiring August 15, 2006, with the ability to autojaticallY renew for one more year wi1h an agreed upon service or fee a<ljustments. Disb rsements (Federal Express, courier services, subcontractors, postage, supplies, long dist1ce telephone) will be charged at an actual cost basis. Hourly Billing Rates The leduced municipal rate is for all hourly legal and administrative work covered by this prop~al and all legal and administrative work related to Time Warner (or whoever the current franc ise holder is) and such work involves a shared issue with other Time Warner franchising authorities in the metropolitan area and the City must pay the fee out of its franchise fees or from other City funds (thereby triggering B&G reduced municipal rate). B&G currently represents other Time Warner franchising authorities. These franchising authorities see a significant cost savings when B&G splits the hourly work between all of its clients. Assuming the franchising authorities and the City authorize the scope of work, the following effective hourly rates would be spl~t among clients ofB&G: Professional Shakopee Hourly Senior Project Manager $135.00 Senior Engineer $170.00 Attorney $175.00 Law Clerk $100.00 B&G is able to split the actual hours spent on a project among all of its participating clients in the T in Cities metropolitan area, which also have Time Warner as its cable provider. Therefore when IY issue affects all of 1he franchise ho Iders (which it often does), and B&G must deal wi1h I BRADLEY & GUZZETTA, LLC Page 5 ,- PROPOSAL TO PROVIDE CABLE FRANCHISE & I-NET OVERSIGHT SERVICES BraIDeyrf Guzr~ U~ .- Time Wamer in relation to all of its clients, B&G splits its regular hours among its Time Warner clients. When B&G hours are billed back to Time Warner, B&G reserves the right to charge its regular rates and not split the costs between the cities. No other law firm can offer this significant fee reduction, because they do not represent anywhere near the number of cable franchising authorities in the Twin Cities as B&G. Conclusion Thank you for asking our firm to submit this proposal. B&G would welcome the opportunity to discuss it further with the appropriate member City officials. B&G is in a unique position to save the City a considerable amount of money and at the same time enhance city services. Respectfully Submitted, Dated: May 4, 2005 Bradley & Guzzetta, LLC Michael R. Bradley, Owner Stephen 1. Guzzetta, Owner Bradley & Guzzetta, LLC 950 Piper Jaffray Plaza 444 Cedar Street St. Paul, MN 55101 P /651- 3 79-0900 F/651-379-0999 www.bradleyguzzetta.com BRADLEY & GUZZETTA, LLC Page 6 III PROPOSAL TO PROVIDE CABLE FRANCHISE & I-NET OVERSIGHT SERVICES Bradley&- Guzzetta, LLC .. Tracy J, Schaefer Tracy J. Schaefer is the Senior Project Manager for Bradley & Guzzetta, LLC. Ms. Schaefer assists public and private entities with telecommunications planning, contracting, fiscal admitstration and organizational development. Ms. : chaefer has a wealth of experience in municipal telecommunications planning. Her expertences include the design, development and implementation of institutional networks (l- Nets), VoIP, cable/telecommunication commission planning and reorganization and cable franciiSing. Ms. Schaefer recently developed and coordinated a nationally recognized fiber I- Net u ing VoIP technology that is owned and used by the City of Shakopee, Minnesota, Scott Countr, and the local school district. The I-Net is projected to create a significant savings to the publid, while providing state-of-the-art technologies to all ofthe public entities. Ms. Schaefer's fiber I I-Net and VoIP system were featured in the NATOA Journal of Municipal TelecImmunications Policy due to the I-Net's innovative nature and successful completion. Ms. Schaefer has significant experience in Public Administration. She has worked closely with cities Ion determining the viability of projects, performing cost-benefit analyses and cable needs assessments, and making successful recommendations before decision-making bodies. Working \ with decision-making bodies and staff, she has developed joint powers agreements, RFPs, capital improrement plans (CIPs), short-term and long-term budgets, refuse/recycling contracts, police service contracts, labor union contracts, building project management, municipal service contrabs and purchasing agreements. Ms. Schaefer's cutting-edge refuse and recycling contract has bien featured in a number of professional refuse and recycling journals. Ms. Shaefer is also a leader in civic and professional associations. She serves with other urban mana ementprofessionals in the International City Manager's Association (lCMA) and Minn sota City/County Management Association (MCMA). She also serves as an officer with the A sociation of Public Management Professionals (APMP) and was named Assistant of the Year Fice by APMP. She is President of the Winona State University Alumni Board of Directors and is also a member of NATO A and MACTA. Prior jo joining the Firm, Ms. Schaefer served the City of Shakopee as the Assistant to the City Admiyistrator. Ms. Schaefer has also held positions with the cities of Winona, MN, Sugar Grovel,IL (Chicago suburb) and Ottawa, IL, and she worked on the Minnesota tobacco litigation under then Attorney General Hubert "Skip" Humphrey III. Ms. Schaefer graduated with honors from fnorthern Illinois University with a Masters of Public Administration (MPA) degree in urban management with a strong focus on fiscal administration. She graduated magna cum laude t"ith a Bachelor of Science degree in Economics and Public Administration from Winona State I niversity. I I BRADLEY & GUZZETTA, LLC Page 7 ~I PROPOSAL TO PROVIDE CABLE FRANCHISE & I-NET OVERSIGHT SERVICES Bra eye} Gmrm, ~ . Michael R. Bradley Michael R. Bradley received a bachelor of arts degree from the University of Minnesota and a juris doctor degree from Hamline University School of Law. Mr. Bradley has been successfully managing projects, both large and small for over ten years. He currently acts as the administrator for several cities in the regulation of cable companies and the production of public, educational and governmental access television. His services have saved cities thousands of dollars, while maintaining excellent services. In the 1990's, he successfully managed the government affairs contract for a lobbying firm engaged by the City of Saint Paul to obtain funding for the building of the Xcel Energy Center, which involved coordinating multiple lobbying firms, independent contractors and municipal employees. The effort resulted in the construction of the Xcel Energy Center and the return of the NHL to Minnesota. Mr. Bradley served honorably as a Judge Advocate with the Minnesota Army National Guard for eight years, where he attained the rank of Major and the position of the Deputy Staff Judge Advocate. Prior to his discharge, Mr. Bradley successfully managed a staff of attorneys and paralegals to provide legal services to our soldiers and their families during the largest military deployment in the state of Minnesota since the Korean War. For many years, Mr. Bradley has served on the Insurance For Members Committee of the Minnesota State Bar Association ("MSBA"). He chaired the Insurance For Members Committee from 1999-2002, where he worked diligently and successfully with a third party insurance provider to bring additional services to MSBA members, while at the same time generating additional funding to the MSBA. Mr. Bradley is also the founder and Co-Chair of the Military Affairs Committee, which is the largest committee of the MSBA, and a member of the MSBA Communications Committee. As an attorney, Mr. Bradley has consistently been recognized as a "Rising Star" Attorney by Minnesota Law and Politics in 2001, 2003 and 2004. Mr. Bradley practices regulatory law, where he primarily represents governmental entities across the country on communications issues, particularly in cable television and telecommunications law. Mr. Bradley also has extensive government affairs experience. Most recently, he represented franchising authorities before the Minnesota State Legislature, working to develop statewide policy on telecommunications issues. He is also a member of the Minnesota Association of Community Telecommunications Administrators ("MACTA"), where he serves on the Legislative Committee and the National Association of Telecommunications Officers and Advisors ("NA TOA"), where he serves on the legal and public policy committees. BRADLEY & GUZZETTA, LLC Page 8 1................'.........1....!...i..... '..1........ ......................1............ PROPOSAL TO PROVIDE CABLE FRANCHISE . .' . . ... . & I-NET OVERSIGHT SERVICES I~ I Bradley&- Guzzetta, LLC . Stephen J, Guzzetta Step~n J, Guzzetta graduated from Boston College in 1990, magna cum laude, with a Bachelor of A s in political science. He received his law degree from American University's Washington Colle e of Law in 1993. Mr. Guzzetta currently provides legal and administrative services to a num~1er of cities, municipal cable commissions and non-profit corporations in the areas of cable and t .lecommunications law. By way of example, Mr. Guzzetta oversees franchise compliance activifies and assists with the formulation and enforcement of internal video programming produeion policies. Mr. Guzzetta also has significant experience managing and administering large ontracts and complex projects involving a variety of consultants. Mr. duzzetta began his legal career as a regulatory attorney with the Office of the Corporation Coun~elfor the District of Columbia and the Office of Cable Television for the District of COlutbia where his responsibilities included cable television franchise administration and enfor 'ement, and the management of outside consultants. After working for the District govefment for several years, Mr. Guzzetta moved to the private sector joining Miller & Van Eatonr P.L.L.C., a Washington, D.C. - based telecommunications law firm representing municipalities throughout the country. While at Miller & Van Eaton, Mr. Guzzetta assisted numetous municipalities with franchise enforcement and administration issues, and developed reguljtory/contract compliance programs for local governments. Mr. Guzzetta is an attorney licensed to practice in the State of Minnesota, the Commonwealth of Massrl.chusetts, and the District of Columbia. He has substantial experience practicing before admidistrative agencies, including the Federal Communications Commission and state utility c01ssions; For example, Mr. Guzzetta has participated in numerous cable television rate proce . dings, the Troy, Michigan preemption proceeding, the Chibardun/Rice Lake preemption procerding, the Baltimore/United Artist franchise fee proceeding, the FCC's right-of-way mana~ement notice of inquiry, the FCC's cable modem rulemaking and the FCC's emergency alert ~roceeding. Mr, ~etta is a member oflbe National Association of Telecommunications Officers and Advisprs ("NATO A"), where he serves on the Public Policy Committee, and a member of the Minnesota Association of Community Telecommunications Administrators ("MACTA"), where he serres on the Legislative Committee. Mr. Guzzettais a frequent speaker at NATOA and MA~A conferences. In addition to his service to NATOA, Mr. Guzzetta served as a Com issioner on Shakopee's Telecommunications Commission and is currently a Shakopee resident, which has allowed him to be aware and knowledgeable on current and past Shakopee telecotmunications issues, I BRADLEY & GUZZETTA, LLC Page 9 II PROPOSAL TO PROVIDE CABLE FRANCHISE & I-NET OVERSIGHT SERVICES Brakey&- GUZTa, 1U . I Richard R. Nielsen Richard R. Nielsen is B&G's Senior Engineer and is based out of the Saint Paul, Minnesota office. Mr. Nielsen works as lead technical staff for the firm. His work includes underground and aerial construction planning review and analysis, cable television system performance audits, institutional network design, application development and performance review, telecommunications system design application development and review, data communication system and equipment planning as well as review and analysis of other technical issues. Prior to Mr. Nielsen joining B&G, he spent 19 years with AT&T Broadband and its predecessor companies. The last four were spent as the Institutional Network Manager. While managing he was involved in a wide range of activities, including maintenance of institutional networks representing over 20 franchise areas and over 1000 miles of coaxial, HFC and fiber optic plant, designing new and upgrading existingI-Nets, budgeting for new and updated I-Nets, supervision of construction activities, and activation of fiber optic nodes, power supplies, amplifiers, pilot generators and status monitoring systems. Mr. Nielsen regularly represented AT&T Broadband at various meetings relating to I-Net issues. He also worked closely with consultants in evaluating and designing upgrades to existing I-Nets. For the 8 years prior to being I-Net Manager, Mr. Nielsen was the Technical Supervisor. He supervised 35 Maintenance Technicians and Service Technicians, implemented a plan to bring service levels up to NCTA and FCC standards, and was in charge of reporting all engineering and technical data for national reporting FCC testing and reporting and public files for CLl and Proof of Performance. Additionally Mr. Nielsen spent 4 years as a Headend Technician and was involved in designing, wiring and maintaining headends, hubs and antennas. He was on call 24 hours a day for problems related to headends. Mr. Nielsen's first 3 years were spent as a Maintenance Technician. He was responsible for maintaining HSN and I-Net plants, field testing of FCC CLl and Proof of Performance requirements as well as working on call (24/7) for outages and problems. Mr. Nielsen began his career as a technician and installer for Best Vision SMA TV and Muller prybel1. Formal education was received at Dakota County Vocational Technical School in its Cable Television Degree Program. BRADLEY & GUZZETTA, LLC Page 10 II PROPOSAL TO PROVIDE CABLE FRANCHISE & I-NET OVERSIGHT SERVICES Bradley& Guzzetta, u.c