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HomeMy WebLinkAboutRESPONSE - RFP - P883 CONSULTING SERVICES CABLE TV FRANCHISE RENEWSTATEMENT OF QUALIFICATIONS TO PROVIDE PROFESSIONAL CONSULTING SERVICES FOR THE CITY OF FORT COLLINS, COLORADO RIVER OAKS COMMUNICATIONS CORPORATION Colorado Springs Office: Thomas F. Duchen, President Mining Exchange Building 8 South Nevada, Suite 515 Colorado Springs, Colorado 80903 Phone: (719) 477-6850 Fax: (719) 477-0818 E-Mail: tduchen@rivoaks.com Website: www.rivoaks.com Denver Office: Robert M. Duchen, Vice President 6860 South Yosemite Court, Suite 2000 Englewood, CO 80112 Phone: (303) 721-0653 Fax: (303) 721-1746 E-Mail: bduchen@rivoaks.com March 11, 2003 River Oaks Communications Corporation Mr. Thomas Duchen, President of River Oaks, has extensive cable and telecommunications experience. Mr. Duchen is a 1978 graduate of the University of Virginia School of Law and holds a B.A. from Tulane University. Since the formation of River Oaks in 1987, he has worked on a variety of issues throughout the United States, including projects in states such as Washington, Colorado, Nevada, California, Nebraska, North Dakota, Illinois, Missouri and New York. Mr. Duchen has significant experience in franchise negotiations and is a frequent speaker at cable and telecommunications seminars and conferences. Mr. Robert Duchen, Vice President of River Oaks, also has extensive cable and telecommunications experience. Mr. Duchen is a 1978 graduate of the University of Virginia School of Law and holds a B.A. from Tulane University. Mr. Duchen has worked in states throughout the country, such as Washington, Oregon, Colorado, Wyoming, New Mexico, Ohio, Illinois, Nebraska, Minnesota, Wisconsin, Iowa, Pennsylvania and South Carolina. Professional resumes follow. The cable franchise renewal process involves regulatory, financial, technical and other matters. River Oaks has assembled a team of varying disciplines for this project whose members have significant expertise regarding cable television matters and whose professionals stand ready to assist River Oaks on an as -needed basis. Each team member is nationally recognized for his/her expertise in the cable television area. Resumes for team members, such as Tom Robinson of CBG, Dr. Constance Book (who has performed survey work involving cable television and telecommunications projects for municipalities throughout the country) and Lou Karrison of Sikich Group, LLC follow. 10 River Oaks Communications Corporation THOMAS F. DUCHEN PRESENT POSITION President - River Oaks Communications Corporation EDUCATION Legal: University of Virginia, Charlottesville, Virginia 1975 - 1978, J.D. Originally Admitted to Bar: Colorado Supreme Court (1984) Louisiana Supreme Court, U.S. District Court - Louisiana U.S. Court of Appeals - Fifth Circuit (1978) U.S. Court of Appeals - Tenth Circuit Undergraduate: Tulane University (1971-1975) - B.A. - Phi Beta Kappa EXPERIENCE Mr. Duchen joined the law firm of Phelps, Dunbar, Marks, Claverie and Sims, in New Orleans, upon his graduation from law school in 1978. He then worked as a corporate attorney for a large business conglomerate in the Washington, D.C. area. Mr. Duchen subsequently came to Colorado and joined a subsidiary of The Gates Corporation in Colorado Springs in a business capacity. He then proceeded in 1987 to form River Oaks Communications Corporation and since that time has served as its President. Mr. Duchen's work has taken him to a multitude of communities in states such as Colorado, Washington, Ohio, Minnesota, Nebraska, North Dakota, Iowa, Illinois and Missouri. SPEECHES National NATOA Conferences: San Diego, California -1998; Palm Beach, Florida - 1996; Orlando -1993; Dallas - 1992; Anaheim - 1991 ARTICLE Is your Community Ready to Begin the Cable Franchise Renewal Process?, Colorado Municipalities Magazine 11 River Oaks Communications Corporation ROBERT M. DUCHEN PRESENT POSITION Vice President - River Oaks Communications Corporation EDUCATION Legal: University of Virginia, Charlottesville, Virginia 1975 - 1978, J.D. Originally Admitted to Bar: Colorado Supreme Court, U.S. District Court - District of Colorado and U.S. Court of Appeals - Tenth Circuit (1978) U.S. Court of Appeals - D.C. Circuit (1983) Undergraduate: B.A.- Duke University (1971), Tulane University (1972-1975) - Phi Beta Kappa EXPERIENCE Mr. Duchen served as corporate counsel to a number of companies in the Denver area. He has specialized in cable television matters for over 15 years. Since his affiliation with River Oaks in 1987, Mr. Duchen has worked on a broad range of franchise and telecommunications matters in states such as Colorado, California, Washington, Wyoming, Montana, Wisconsin, Minnesota, Illinois, Missouri and South Carolina. His work has included cable television franchise renewals, feasibility studies and a variety of wireless telephony (PCS) projects. Mr. Duchen is a frequent lecturer on topics involving cable television franchises and other telecommunications subjects. Colorado Municipal League - 1997 League of Nebraska Municipalities - 1997 National League of Cities: Portland - 1996 National NATOA Conferences: San Diego - 1998; Albuquerque - 1995; Orlando - 1993; Dallas - 1992 Regional NATOA Conferences: Denver - 1995, 1998 ARTICLE . Is your Community Ready to Begin the Cable Franchise Renewal Process?, Colorado Municipalities Magazine Fla River Oaks Communications Corporation THOMAS G. ROBINSON PRESENT POSITION CBG Communications, Inc. Executive Vice President February 2001 - Present Mr. Robinson has successfully been and continues to be involved with numerous cable and telecommunications franchise renewal and development projects, including projects involving Institutional Network and Public, Educational and Governmental (PEG) Access review, needs assessments, technical and compliance audits and past performance reviews, that have been very beneficial for public sector clients. He is a frequent speaker at telecommunications, local government and technical conferences. Mr. Robinson is published bimonthly in Communications Engineering & Design (CED) magazine. PRIOR River Oaks Communications Corporation 1994 - January 2001 Denver, Colorado Director of Regulatory Affairs and Technology Development Worked with local governments all across the country on a variety of telecommunications projects, including telecommunications planning, needs assessments, policy development, institutional networks, infrastructure issues, Public, Educational and Governmental (PEG) access issues, technical reviews, regulatory agreements, cable television renewals and other matters. Fairfax County Department of Consumer Affairs Fairfax, Virginia 1984 - 1994 Chief, Cable Regulatory and Technical Division Managed a staff of 14, including administrative, financial, engineering, and clerical personnel, to develop innovative cable communications applications and regulate local cable television systems. Responsible for regulating one of the nation's largest cable systems (Media General Cable of Fairfax, Inc.) and a Time Wamer Cable system. Accomplishments include: Broadband Institutional Network (I -Net) Development. Worked with cable television (CATV) system operators, government agencies and non-commercial organizations to implement video, voice and data communications applications on the I -Net. Developed long -haul access and telecourse video links, IBM terminal -to -mainframe circuits, packet -switched and other peer -to -peer communications and T-1 internodal telephone links. Served on selection advisory and implementation committee for the County's PABX system. Developed a County -wide video training network serving over 300 public facilities throughout a 400 square -mile area. 13 River Oaks Communications Corporation Franchise Administration and Policy Development. Implemented provisions of the franchise agreement, local ordinances and applicable state and federal laws. Worked to develop policy and resolve franchise legal issues, including franchise awards, enforcement actions, rate regulation, review and modification of facility, service, equipment and other obligations, and review and update of local law. Provided written and spoken testimony on cable and telecommunications issues before local, state and federal authorities (e.g., U.S. Congress and Federal Communications Commission). Administered cable franchise fee revenue funds (over $5 million annually), including budget preparation. Monitored, allocated and disseminated cable grant funds (over $1.5 million annually). Technical Performance Analysis and Training. Tested and reviewed cable operator's subscriber and I -Net system performance for compliance with local franchise and federal requirements. Worked with corporate, local system and consulting engineers for the resolution of technical issues. Trained NATOA membership on changes in CATV and telecommunications technology and maintained direct involvement in the development of national CATV technical standards. Made a variety of national seminar presentations on technical standards, data transmission, I -Net usage and other technical topics. Interfaced with cable operators, industry officials and subscribers regarding consumer electronic equipment (television, VCR, converter, etc.) interconnect issues. Government, Consumer, Press, and Industry Affairs. Served on the Board of Directors of the National Association of Telecommunications Officers and Advisors (NATOA) to confront a wide range of national telecommunications issues. Locally, worked directly with citizens' groups and County Board of Supervisors' Offices in developing policy and resolving critical, cable -related problems. Served as a spokesperson for Fairfax County on cable television matters before members of the press. Noted speaker at many government and industry forums. Construction Oversight. Managed cable television inspections program and complaint handling staff. Developed a comprehensive inspections manual, inspections reporting procedures, construction standard compliance procedures and computerized complaint records and statistics. Government Access Television. Staff announcer and on -air talent for award -winning, government access cable channel. Magnavox CATV Systems, Inc. (now Philips Broadband Systems) Manlius, New York 1980 - 1984 Product Specialist for Amplifier Systems Managed largest and most profitable product line for this major cable television equipment manufacturer. Accomplishments included: Conceptualization, Implementation, and Marketing of New Products. Formulated desired product specifications, features, costs, and pricing policies for a broad range of amplifier system products. Results included the development of new, advanced, higher bandwidth distribution systems. 14 River Oaks Communications Corporation CATV Systems Engineering and Architectural Design. Formulated architectures and performance specifications for thousands of plant -miles of both residential and institutional networks. In -Plant and Outside Management and Liaison Functions. Organized and participated in many product review teams with representatives from the administration, manufacturing, engineering and quality assurance departments for the purposes of product development analysis, problem solving and factory expediting. Served as an interface with both domestic and foreign distributors and industry associations. Market Research and Analysis. Assessed general industry and specific customer growth, capabilities and trends for the purpose of discerning and meeting the market's service and equipment needs. One effort culminated in the introduction of Magnavox's Upgrade/Rebuild Analysis Service which resulted in increased sales. Analyzed competitors' product lines, strengths and weaknesses. Technical Sales and Industry Training. Prepared and presented numerous sales training sessions on individual, regional and national levels. Participated in many Society of Cable Television Engineers (SCTE) regional and national seminars. Presented major papers on system reliability and system architecture. Technical Marketing Support. Involved in numerous outside and in -plant customer visits, including product demonstrations and temperature chamber cascade tests. Represented the company at national and regional trade shows. Marketing Communications. Provided narration and editing expertise for audio-visual presentations (videotapes, slide shows, etc.). Prepared production specifications, copy and sample layouts for catalogs, brochures and advertisements. Disseminated information to the media through press releases and interviews. Other Positions Held at Magnavox Included: Proposal Administrator and System Designer. WCNY TV/FM Syracuse, New York 1980 Held the position of Operations Engineer. WPTX-AM/WMDM-FM Lexington Park, Maryland 1979 - 1980 Held the position of Station Program Director. EDUCATION Syracuse University S.I. Newhouse School of Public Communications Syracuse, New York 1978 - 1979 15 River Oaks Communications Corporation M.S. Telecommunications/Film. Graduated with honors, Dean's list all semesters. Recipient of the A. William Bluem Award for outstanding service as a Graduate Teaching Assistant. Towson State University Towson, Maryland 1974 - 1978 B.A. Mass Communications. Graduated Summa Cum Laude. National Association of Telecommunications Officers and Advisors (NATOA). NATOA Editorial Board; Science and Technology Committee. Previously served on Board of Directors, Legislative and Legal Affairs Committee. Society of Cable Telecommunications Engineers. 0111 River Oaks Communications Corporation CONSTANCE LEDOUX BOOK, Ph.D. PROFESSIONAL EXPERIENCE Assistant Professor Elon College (2002) Provide instruction in a variety of mass communications disciplines. Assistant Professor Meredith College (1997-1999) Provide instruction in a variety of mass communication courses (broadcast focus). Visiting Lecturer North Carolina State University (1996-Present) Acting Coordinator of Journalism Georgia College (1994-1996) Provided oversight of journalism program for 120 majors. Assistant Professor Georgia College (1990-1996) Provided instruction and advisement to students in the telecommunications sequence. Courses taught included: Broadcast News, Broadcast Production, Writing for the Electronic Media, On - Line Journalism, New Technologies and Public Policy, and Communications Law and Ethics. Graduate Teaching Assistant University of Georgia (1990-1993) Instructed courses in Writing for Radio and Television and Broadcast Production. Assisted professors with various research projects. Instructor Northwestern State University (1988-1990) Provide instruction and support to journalism students in the broadcast sequence. Consultant Cable Relations (1994-Present) Includes statistical assessment of community and residents' perceptions of cable television. Have served as lead researcher on needs and interests ascertainments in Denver, CO; Milwaukee, WI; Vancouver, WA; Seattle, WA; Danbury, CT; Norwich, CT; Plano, TX; St. Paul, MN; and several other municipalities. EDUCATION (1993) Ph.D. Journalism and Mass Communications. The University of Georgia, Athens, Georgia. Dissertation: Municipal Officials' Attitudes Toward Cable Television Regulation: A National Study. 17 River Oaks Communications Corporation (1989) M. Ed., Education Administration and Supervision. Northwestern State University, Natchitoches, Louisiana. (1986) B. A., Journalism. Louisiana State University, Baton Rouge, Louisiana. HONOR SOCIETIES (1993) Kappa Tau Alpha. Journalism honor society. (1993) Phi Kappa Phi. Academic honor society. (1993) Blue Key. National Honor Society. University of Georgia. IW River Oaks Communications Corporation Louis G. Karrison, CPA Partner in audit group, concentrating in consulting and auditing for local (cable television) franchising authorities and other governmental entities Mr. Karrison, a graduate of the University of Illinois, has been involved in consulting and auditing since 1967, and has conducted over nine hundred audits during that time period. He is a member of the American Institute of Certified Public Accountants and the Illinois CPA Society, where he served as chair of several committees. In addition he is a member of the Government Finance Officers' Association, the National Association of Telecommunications Officers and Advisors (NATOA), and the Illinois Chapter of NATOA. He has performed numerous cable television "franchise fee compliance" (audit -type) engagements and rate -setting projects of large, mid -size, and small cable operators on behalf of local franchise authorities and consortia on a nationwide basis. Additionally he has served as a consultant regarding cable franchise awards and transfers, as well as acting in a litigation support role. Mr. Karrison has been a featured speaker for NATOA, Illinois NATOA, the Minnesota Association of Cable Television Administrators (MACTA), the Illinois Municipal League, and the Kentucky League of Cities. He has also written several articles for NATOA's newsletter. 19 River Oaks Communications Corporation INTRODUCTION River Oaks Communications Corporation ("River Oaks") is pleased to present this Statement of Qualifications to provide cable television and telecommunications consulting services for the City of Fort Collins, Colorado (the "City"). We understand that the City is seeking a consultant with a well -established background in the cable television and telecommunications field, a broad knowledge of the cable television franchise renewal process and telecommunications infrastructure and services that will affect private industry, public entities and consumers. We further understand that the City will need timely, clear and comprehensive input from its consultant in order to properly position the City in the analysis, review, discussion, and decision -making tasks related to this franchise renewal project. From our work with similar projects, River Oaks understands that the City needs a complete picture of its current and projected future cable -related needs and interests and telecommunications services climate, and how this climate currently, and will in the future, compare with the needs of its constituent communities, especially the needs of consumers, the public sector and possibly educational entities. The City then needs to determine how it can best pursue directions for the future that will provide it with the strongest position and greatest opportunity to positively affect the development of cable television and telecommunications infrastructure and services, in order to benefit its constituent communities. In particular, we have worked on cable television and telecommunications projects for a number of communities in Colorado, including, but not limited to, Fort Collins, Denver, Greeley, Longmont, Larimer County, Aspen, Aurora, Boulder, Nederland, Gunnison, Castle Rock, Crested Butte, Mt. Crested Butte, Pitkin County, Breckenridge and the Southern Colorado Educational Television Consortium in Colorado Springs. In Fort Collins and Larimer County, River Oaks was intricately involved in the needs assessment process and drafting and negotiation of franchises. We hope that you will share the view that our experience, innovative methodologies, expertise, enthusiasm and extensive work in Colorado and around the country qualify us to assist you with this project. The new Franchise with Comcast need to take into account changes in technology and the convergence of cable, telephony and cable internet services. It is very important for the City to understand that the infrastructure which is negotiated is an important part of the economic development for the City. An advanced system provides significant opportunities for implementation and coordination with the GIS system of the City. Additionally, cost savings for the City could occur if the City could utilize the cable system instead of leased phone lines. It will be important to meet economic development, PEG and Subscriber needs in the cable renewal process. EXPERIENCE AND PAST PERFORMANCE River Oaks has worked on a wide variety of cable franchise projects and other telecommunications matters throughout the United States. The following is a list of some of the communities where River Oaks have worked on such matters: River Oaks Communications Corporation If requested, River Oaks can work with the City Attorney's Office and its Special Legal Counsel on regulatory matters (including, but not limited to, franchise drafting, franchise compliance issues, negotiation and finalization of the new franchise agreement) along with coordinating all necessary needs ascertainment activities. Dr. Connie Book, in conjunction with River Oaks, will develop a residential survey and tabulate the results thereof. Mr. Robinson will focus on the technical review of the cable system. Based on our experience levels and reputation in this field, we can assure the City that the proposed key personnel will be committed to this project through its completion. PROCESS FOR DEVELOPING FRANCHISE AGREEMENT The following is an overview of some of the recommended steps which could occur regarding the cable television franchise renewal process: • Develop a list of City goals/objectives. • Meetings with City officials and staff. • Review other recent cable television franchise agreements of the cable operator. • Review existing franchise and applicable City files. • Review Section 626(a) renewal letter for timing and substantive content. • Assist the City in conducting the needs ascertainment (subscriber and organizational surveys, workshops and public hearings). • Address PEG Access issues (for example, number of channels, funding and equipment requirements). • Institutional Network review and development (namely, the provision of fiber to governmental and educational locations for applications such as video, voice and data transmission). • Conduct a technical review of the cable system and the cable operator's future upgrade plans. • Perform past performance review of cable operator (franchise compliance review). • Draft new Cable Television Franchise Agreement. - Hold negotiations with the cable operator. • Determine if the City and cable operator can successfully conclude the informal cable franchise renewal process. Make a recommendation to the City as to whether additional procedures are required under the formal cable franchise renewal process. 411 River Oaks Communications Corporation Attend City Council meetings/public hearings regarding the new Franchise Agreement. Work closely with City staff to conclude the process. Methodology and Project Work Plan River Oaks understands that the City's goal is to review, audit, and assess both the past and present compliance of the existing franchisee and the future cable -related community, technological, PEG and possibly the I -Net communications capabilities and needs in its area, especially as these issues pertain to the telecommunications franchise renewal process. We will gather needed information regarding all these issues and deliver a clear, concise report. Ultimately, the audit and review process will lead to ways that the telecommunications franchise renewal process can help resolve any present concerns and meet the future requirements of the City and its residents. River Oaks will perform the following tasks and action steps in order to meet the objectives of the RFP: River Oaks could list and review pertinent franchise requirements, review City records and the cable operator's reports, make inquiries of the operator and assess compliance with a host of franchise provisions including: • Line extension and density requirements • Overall customer service requirements • Overall PEG Access requirements • Overall I -Net requirements • Right -of -Way (ROW) occupancy requirements and conditions • Provision of cable drops and cable services for public buildings • Overall franchise technical requirements • Availability of emergency override capability • Reporting requirements and systems • Level of insurance and provision of insurance certification • Bonding requirements • Provision of a local office • Assess current infrastructure for age and maintenance requirements • Required upgrades of the cable system and other services • Other provisions of the franchise • Work on related compliance matters, including financial strength and ability to meet future franchise requirements Audit of Technical Facilities and Technical Needs Assessment River Oaks believes that an innovative, multi -faceted approach is the best way to arrive at a comprehensive picture of the technical aspects of the cable operator's system and facilities. This would include: 1. Review of age, condition, capacity and functionality of the cable system, amount of fiber 21 River Oaks Communications Corporation optics currently employed, cascade lengths, home to node ratio, headend, system architecture and interconnects. 2. Examine the proof of performance results, and review noise and distortion characteristics. 3. Examine current channel capacity and future capabilities of system including the ability to provide technologically advanced and/or interactive services. 4. Review system maintenance, reliability, types of back-up and network monitoring systems and upgrades. These tasks are interlocking and all involve a review of the technology and architecture used to provide existing, as well as future enhanced and advanced, telecommunications services to the residential community. With respect to the current system's characteristics and future system development and upgrade, CBG would review the operator's response to our requests, and we would meet and have discussions with engineering, technical staff, marketing staff and other appropriate personnel. We would look first at what is currently available (including current channels in use, channel capacity and planned capacity), plans for any near -term upgrades and additions, and then at future capabilities of the system, including the ability to provide a wide range of technologically advanced and interactive services. This would also include a review of system regionalization, master headends, potential system interconnections facilitated by greater implementation of fiber and a review of how many homes are served by fiber to the node technology with respect to targeted service delivery. We would then move to verify the paper audit by performing a field audit, if necessary, where we conduct an on -site inspection at the headend and in the field at several representative test point locations. We would report on the architectures and design features of other area systems for comparison purposes. In addition, we would review information regarding how cable technology is being employed in other systems, look at the operator's own plans and how the City might benefit from those. We would also review issues related to system reliability, types of back-up and network monitoring systems and upgrades and any viability questions with respect to existing communications technologies. CBG will conduct the audit process to assess the current technological condition of the system and will also develop recommendations regarding future communications technology needs. CBG will work with the City, take the survey and audit findings and turn them into realistic objectives and strategies with respect to the franchise renewal process and other initiatives. River Oaks has worked with local, regional and national technical and/or engineering firms. There are several possible approaches to the Technical Review. If the City so requested it, River Oaks could work with national P.E. firms (if the City wishes to go to this expense). For example, River Oaks has worked with Black & Veatch and CH2MHill. 22 River Oaks Communications Corporation Customer Service We will evaluate pertinent facets of the cable operator's customer service operations. Billing, installation, disconnect and other service policies will be reviewed to ensure that the cable operator is currently in compliance with recommended FCC Customer Service Standards. Additionally, if the City so desires, we will recommend customer service standards which exceed the requirements referred to above. It is incumbent upon the cable operator to provide the best possible service to its subscribers. We have drafted customer service standards which require accountability on the part of cable operators elsewhere. Surveys, Workshops and Public Hearings River Oaks has prepared cable television surveys for cities in various states. For example, we assisted in drafting a cable television survey for the City of Everett which was used to ascertain subscriber satisfaction or dissatisfaction with the services, rates and performance of AT&T. River Oaks will work with City personnel in developing and analyzing the survey. River Oaks will conduct workshops and public hearings to further ascertain the City's future cable - related needs and interests. We understand who needs to be contacted and included in the renewal process. After the surveys, workshops and public hearings are concluded, the City will know what its constituents desire and expect from the cable operator. The City can then determine if the cable operator's proposal is reasonable, taking into account the cost of meeting such needs and interests. River Oaks will evaluate that proposal based upon its extensive cable experience. River Oaks will prepare a written report that identifies the future community needs and interests of the City. I -Net River Oaks understands the potential importance of an I -Net to the City and its public agencies and educational constituent communities. CBG will review the operator's existing I -Net infrastructure and services (if any), and plans for future infrastructure and services, for these constituent communities. We will also review in the community needs ascertainment key current and potential I -Net users and their existing requirements and their needs for the future, and determine how their and the City's I -Net requirements may be coordinated among governmental and educational entities. Franchise Agreement (Ordinance) A critical part of the franchise renewal process involves the drafting, negotiating and finalizing the new cable television franchise agreement which is based upon findings which are derived from the needs ascertainment process. We will review recent examples of the cable operator's franchises (in like -size markets) for comparison purposes in drafting the new franchise agreement. Our experience is that drafting the franchise renewal agreement takes a considerable amount of time and effort. The City and cable operator invariably will have different ideas as to what needs to be included in the franchise agreement. Most of the time, areas of disagreement regarding franchise provisions can be successfully negotiated between a city and cable operator. 23 River Oaks Communications Corporation Cable Internet, Telephony and Telecommunications The changing world of technology has resulted in the convergence of cable, cable internet, telephony and telecommunications services. It will be important for the City's consultant to have a broad based view of these services and the ways in which they can be implemented via Comcast's cable system. Many sections of the Franchise will be affected by these developments. Thus, while some of these may not currently be classified as cable services, significant FCC regulatory and legislative and judicial decisions should be taken into account in terms of the cable renewal process. River Oaks will work closely with City staff to provide guidance, support, assistance and oversight during the renewal negotiations. We could be involved in the drafting of the franchise agreement as necessary during negotiations and assist in providing a final written agreement which is in the best interest of the City. TIMELINE Review the City's plan for the loth year review process; work with staff to modify the plan as appropriate. April - June, 2003 2. Assist City staff with various review activities, including a community needs assessment, customer satisfaction survey, and public meetings. April - August, 2003 Prepare a written plan for the renewal process, accompanied by a timeline. April 2003 Review existing Cable TV franchise agreement and suggest additional elements that the City might wish to consider including in any new franchise agreement. April - May, 2003 Attend and/or assist with negotiations with Comcast. August, 2003 - December, 2004 Provide engineering expertise related to the technical review, or assist the City in developing an RFP for these services. April - August, 2003 Provide guidance and assistance, as needed, regarding various regulatory requirements at the Federal and State level. Ongoing 8. Attend various meetings with the City's Telecommunications Advisory Board, City Council work sessions, City Council hearing, etc. Ongoing 24 River Oaks Communications Corporation PROPOSED BUDGET INCLUDING HOURLY RATES AND OTHER FEES The following outline identifies tasks and cost estimates in the franchise renewal process which we would estimate would last for approximately 16 to 20 months. As you can see, the figures vary depending upon the depth of analysis which the City desires. We will work closely with you in order to meet your financial objectives. The cost estimates are based upon the timetable set forth in the RFP. Z a - Past Performance (Comuliance) Review of the Cable (v • Plans Determine Franchise Fee Payment Compliance (One year Agreed R Oil (p • Develop a Comprehensive Needs Ascertainment (Workshops, Pub tc Forums, Hearings, etc.) and Prepare a Report to the City Council <19 Regarding Same • Develop and Tabulate a Residential Subscriber Survey and Prepare a Report Regarding the Survey Results (this does not include the City's administrative costs, such as copying, printing and • Assist in the Drafting, Negotiation and Finalization of the New Franchise Agreement with Comeast e25 • Review the City's planfor the loth year review process; o wrk w:ith + SIa±f =moo .+lap ac an r riate $8_ Z • Assist City staff with various review activities, including community needs assessment customer sa ,3 pare a written plan for the renewal process, accompanied by a timeline. existing Cable TV franchise agreement and suggest additional elements that the City might wish to consider including in any new franchise a reem t. rid and/or assist with negotiations with the AT&T Comcast 5 rable TV Company.ove 6 • Provide engineering expertise related to the technical review, or assist the City in developing an RFP for these services See Above -7 • Provide guidance and assistance, as needed, regarding various • Attend various meetings with the City's Telecommunications a Advisory Board, City Council work sessions, Council hearing, etc. $5,000 - $10,000 Please note that the above figures are for professional services and do not include expenses (approximately $8,500 - $11,500). Expenses would include, but not be limited to: airfare (for out of state subcontractors), hotel, car rental, meals, copies, clerical, Federal Express and long distance phone calls. Furthermore, the above figures are premised upon the cable operator's cooperation with the City. Additionally, please be advised that if work progresses in large part under the formal franchise renewal process (for example, if the City and the cable operator 25 River Oaks Communications Corporation become involved in administrative hearings and/or judicial proceedings), additional expenses will be incurred by the City. River Oaks would propose that the work be performed on an hourly basis plus expenses. The hourly rates charged vary depending upon the personnel utilized. Our key personnel and their hourly rates are as follows: • Tom Duchen, President - $195/hour • Bob Duchen, Vice President - $195/hour Subcontractors - • Tom Robinson, CBG - $175/hour • Dr. Connie Book, Survey/Statistical Work - $100/hour • Lou Karrison, CPA, Partner, Sikich Group, LLC - $150/hour Other Fees and Services River Oaks and its team members stand ready to perform the following additional services at the request of the City: - Institutional Conceptual Network Review and Strategy $14,500 - $18,500 CONCLUSION River Oaks has the requisite experience to meet the City's timetable and competently and effectively work with you on this franchise renewal project. We hope to be of service to the City in some or all of the items in the Scope of Work. Sincerely yours, Z2� Thomas F. Duchen President TFD/s cc: Robert M. Duchen, Esq. Vice President 26 River Oaks Communications Corporation CALIFORNIA Los Angeles Lawndale Beverly Hills Gardena West Hollywood Culver City Manhattan Beach Torrance Redondo Beach Lomita Hermosa Beach Inglewood Hawthorne Santa Monica COLORADO Denver Greater Metro Telecommunications Consortium (23 communities in suburban Denver) Southern Colorado Educational Television Consortium (Colorado Springs) Aspen Castle Rock Fort Collins Broomfield Larimer County Beaver Creek Breckenridge Roxborough Park Louisville Aurora Pitkin County Gunnison Boulder Greenwood Village Greeley Longmont Loveland Summit County Silverthorne Frisco Dillon Mt. Crested Butte Crested Butte IDAHO Moscow ILLINOIS Chicago Galesburg Baldwin Keyesport Beecher City Clinton County Randolph County Bond County Arlington Heights Springfield Rantoul Bensenville Urbana Skokie/Glenview/Northbrook INDIANA Gary Bloomington Columbus Lone Tree Rodney Wiota Ricketts Coin Braddyville Shambaugh Oto Kansas City River Oaks Communications Corporation IOWA KANSAS MARYLAND Hornick Bronson Hancock Smithland Magnolia Little Sioux College Springs Winterset Overland Park Rockville Charles County Carroll County MINNESOTA Minneapolis St. Paul North Suburban Cable Commission (10 communities) Ramsey/Washington Suburban Cable Commission (11 communities) South Washington County Telecommunications Commission (5 communities) Freeport Pierz Township St. Stephen Hollandale Augusta Geneva Township Clear Lake Newry Township Palmer Township Moscow Township Becker Hartland Freeborn Genola Wanamingo Mazeppa Burnsville/Eagan MISSOURI Kansas City Metropolitan Area Jamestown St. Louis Metropolitan Area Nodaway County St. Louis County Polk County Cleveland Fillmore Morrisville Clearmont Elmo Barnard MONTANA Miles City River Oaks Communications Corporation NEBRASKA Lincoln Kearney Lancaster County South Sioux City Craig Holdrege Beatrice Clark County NEVADA NEW YORK Buffalo Metropolitan Area Perinton (Tonawanda and Kenmore) Hyde Park NORTH DAKOTA McVille OHIO Aurora Akron Hudson Township Canton Silver Lake Gahanna Northfield Center Township Reminderville Springfield Township Sagamore Hills Township Barberton Stowe Hudson Village Twinsburg Macedonia Twinsburg Township Tallmadge Mogadore Doylestown Youngstown Bellfountaine OREGON Metropolitan Area Communications Commission (16 communities in Suburban Portland) Clackamas County Corvallis PENNSYLVANIA Philadelphia Chambersburg SOUTH CAROLINA Mauldin TEXAS Plano River Oaks Communications Corporation WASHINGTON Redmond Seattle Vancouver/Clark County Vancouver School District Pierce County Snohomish Everett Monroe Kirkland Pullman Rainier Communications Commission (15 Communities in Tacoma Area) WISCONSIN Milwaukee Linden (Township) Lyndon Station Wauzeka Patch Grove Rock Springs North Freedom La Valle Cobb Highland Wonewoc A. REFERENCES AND HIGHLIGHTS: Bainbridge Island Thurston Bellevue Kent Skagit County University Place Arlington Marysville Mill Creek Poulsbo Association of Washington Cities Blue Mounds Barneveld Hollandale Linden (Village) Dodgeville Mineral Point Cassville Dickeyville Montfort Livingston Hudson • Southern Colorado Educational Television Consortium ("SCETC"- All Public School Districts, University of Colorado, Colorado Springs, Pikes Peak Community College, Library District, School for the Deaf and the Blind). Assisted in needs ascertainment, franchise negotiations and drafting - Sandy Patton, President SCETC (719) 520-2971. Redmond, Washington: Assisted in the completion of the Ascertainment and Technical Needs Assessment work and Franchise Fee Review involving AT&T and Comcast; inventorying technical capabilities; determination of needs and interests, assisted in formulating strategy and the drafting of the new cable television franchise agreement; and other activities; Franchise work completed December, 2002; contact person - Kim van Ekstrom, Marketing and Transportation Manager (425) 556-2419 Poulsbo, Washington: Developed Needs Ascertainment and -Surveys, Drafted Franchise which is being negotiated with Comcast, Actively involved in Cable Renewal process; work is ongoing; contact person - Dennis Bouffiou, Central Services Manager - (360) 697-8240 River Oaks Communications Corporation Bellevue, Washington: Formulated and implemented the Needs Ascertainment; this included Subscriber and Non -Subscriber Surveys, Focus Groups and Workshops with Governmental Departments, Schools and the Public; Drafted and finalized Needs Ascertainment Report in January, 2003; contact person - Laura Blechen, Franchise Contract Administrator - (425) 452-6139 Everett, Washington: Work on community needs ascertainment in the context of the cable television franchise renewal process; drafting proposed cable franchise agreement for submission to AT&T affiliate; work on I -Net and PEG Access issues. (Population - approximately 85,000; franchise renewal negotiations ongoing with completion date of July, 2002; contact person - Peter Camp, Assistant City Attorney - 425-257-8624) B. River Oaks has also been involved with a number of overbuild projects. The following are some of the cities where we have actively dealt with overbuild requests: • Everett, Washington: Assisted the City in the negotiation and drafting of a new Open Video System ("OVS") Franchise with Black Rock Cable, Inc. Work completed in July, 2000. • Bellevue, Washington: Assisted the City in evaluating the franchise application request of Summit Communications, Inc., to provide cable services in the City and drafted suggested language for inclusion in a new franchise. Work completed in September, 1997. • Marysville, Washington: Assisted the City in the negotiation and drafting of a new Open Video System ("OVS") Franchise with Black Rock Cable, Inc. Work completed in December, 2000. • Loveland, Colorado: Assisted the City in the negotiation and drafting of a new cable television Franchise Agreement with WideOpenWest ("WOW"). Work completed in July, 2000. • Greeley, Colorado: Assisted the City in the negotiation and drafting of a new cable television Franchise Agreement with WOW. Work completed in August, 2000. C. River Oaks and Mr. Tom Robinson (who was formerly the Director of Regulatory Affairs and Technology Development for the Company for seven years, and who is presently Executive Vice President of CBG Communications, Inc. ["CBG"]) have extensive experience in dealing with the design and operation of I -Nets as part of the franchise negotiation process. River Oaks and Mr. Robinson continue to work closely on a number of municipal projects. A representative list of some of the I -Net work follows: • Rainier Telecommunications Commission (Pierce County and other Tacoma, Washington Metropolitan Area Communities): Institutional Network development and cost review. Prior to this, completed I -Net needs assessment, encompassing local government, K-12 schools and school districts and higher education institutions. River Oaks Communications Corporation Clackamas County, Oregon: Technical, I -Net and Access review, survey and audit work pertaining to franchise renewals of multiple cable companies serving the County. Prior to this, performed a comprehensive technical audit of all the cable companies in the County, including three AT&T systems, to serve as a baseline for technical work going forward. Corvallis, Oregon: Completed technical audit, past performance review and I -Net and PEG Access technical needs assessment study as part of the franchise renewal process involving AT&T. The study included extensive interview work, document review and architectural concept analysis related to existing and planned network and PEG operations of the City, public schools, higher education entities and others. Metropolitan Area Communications Commission (Portland, Oregon Metropolitan Area Communities): Work involving Public Communications Network (PCN) development oversight and network application and standards development. Prior to this, completed work on I -Net franchise provisions and assistance in negotiations. Also performed technical review and needs assessment work related to a franchise renewal with AT&T/TCI, including subscriber and Institutional Network performance, architecture, services, applications and upgrade review. • Northern Dakota County Cable Communications Commission (Minneapolis -St. Paul Metropolitan Area Communities): Work concerning I -Net implementation involving AT&T and competitive overbuilders, including architectural review and cost analysis. Completed work on I -Net franchise provision development and a needs assessment study including workshops/briefings, written surveys, cost review and architectural concept development. • Minneapolis, Minnesota: Work on a Wide Area Network (WAN) needs assessment, evaluation of proposals to develop WAN infrastructure and services, common conduit policy development, competitive franchise application review and negotiations, and Institutional Network (I -Net) development and negotiations. • St. Paul, Minnesota: Work regarding competitive cable franchise application review and I - Net application development and implementation. Prior to this, completed I -Net needs assessment work as part of the franchise renewal process with Continental/MediaOne, including workshops, interviews, surveys, discussions with the operator, facilities review and other activities. • Charles County, Maryland: Cable franchise development work, including an I -Net and PEG needs assessment, extensive organizational and business representative survey and interview work, workshops, a system technical audit and other activities. River Oaks Communications Corporation D. The principals of River Oaks and Mr. Robinson of CBG have over 40 years of experience in cable television projects. Our collective work experience involves matters in over 25 states. Some of the accomplishments include the following: • In order to maximize franchise fee revenue for cities/counties, we define gross revenues as broadly as possible, consistent with Cable Act requirements. • River Oaks typically negotiates a franchise which contains a term (which is dependent upon the Multiple System Operator's ("MSO's") compliance with certain requirements, such as timely completion of the cable system upgrade). • MSOs have implemented cable system upgrades ranging from 550 MHz (in the early to mid 1990s) to 860 MHz of capacity (in the year 2002). • Cable operators have committed to the design, development and implementation of I -Nets. Cost -sharing arrangements vary, depending upon the MSO. In two instances, the MSO contractually agreed to design, build and maintain the I -Net at no cost to the city. • We have successfully negotiated significant capital grants for PEG Access purposes. Some MSOs are also agreeing to provide up to $1.00 per month per residential subscriber for PEG Access purposes. We have also obtained facilities and equipment for local governments. • Local governments need adequate protection in the event of a franchise breach by the cable operator. As such, our franchises typically include requirements for the posting of a letter of credit, performance bond and/or security deposit. • River Oaks' franchises typically contain meaningful enforcement provisions which include revocation sections and liquidated damages language. ORGANIZATION AND PERSONNEL River Oaks has established a national reputation in cable television and telecommunications matters. The principals of River Oaks have had their work published, and they are frequent speakers at regional and national NATOA, NLC and state municipal league conferences and seminars. River Oaks' primary business is the providing of cable, telephony and other telecommunications consulting services. River Oaks provides expertise in numerous facets of telecommunications matters. During their professional careers, our principals have been involved with a myriad of cable television and telecommunications projects throughout the United States. River Oaks has extensive experience in drafting, interpreting and finalizing surveys, cable television franchises and other telecommunications agreements, meeting and working with local government staff personnel and making innumerable presentations to Commissions, Boards and City Councils. Additionally, because consulting on cable and telecommunications matters is the core of River Oaks' business, the principals are very knowledgeable about, and stay current on, governmental issues and regulatory matters. As such, they are regarded as experts by their peers.