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HomeMy WebLinkAbout24 - BA-027 - Telecommunications Community Needs AssessmentITEM 24 TO: Members of the Newport Beach City Council FROM: Dave Kiff, Assistant City Manager Marilee Jackson, Public Information Officer SUBJECT: Contract Approval and Budget Amendment Relating to the City's Hiring of a Consultant to complete a Telecommunications Community Needs Assessment RECOMMENDED (1) Authorize the Mayor to enter into a contract with The Buske Group to ACTION: complete a Community Needs Assessment for telecommunications services; (2) Adopt Budget Amendment (BA -) for $34,870 (unencumbered general fund reserves). BACKGROUND: Cable television is an industry which has seen more change than possibly any other industry. Cable providers, which have merged and swapped customers on a huge scale in recent years, can do much more than just cable TV. They can provide high -speed data (Internet), pay - per -view and movies -on- demand, telephone service, and hundreds of channel choices (all at a price). When Congress passed the Telecommunications Act of 1996, it declared the cable television industry would be subject to "effective competition' from satellite dish services. In passing this Act, Congress thus deregulated rates and as a result, rate increases have been steady, especially where the digital tier of services is offered in addition to analog channels. Cities no longer have any control over the setting of most cable rates. Newport Beach holds two "non- exclusive' franchise agreements with its two cable companies -- Adelphia (formerly Comcast) and Cox Communications. The Agreements allow the cable companies access to city rights -of -way; but importantly, the cable companies themselves own and maintain the cable lines. Adelphia has about 55% of the city - from Old Corona del Mar coastward of 5th Avenue and then west of Jamboree. Cox has the remainder, including the Newport Coast, Fashion Island, Bonita Canyon and Newport North. The non - exclusivity means that any cable television service is free to come into Newport Beach and lay their own cable on top of or adjacent to existing provider -owned cable lines. The costs of digging up streets and laying fiber optic cable in most cases is significant, so this "overbuilding" is not being done except in a few cities typically where the existing provider has not upgraded to fiber optic. Satellite services are competing but in some ways are still not as attractive to viewers as cable technology. At its December 11, 2001, regular council meeting, the City Council extended the franchise agreements one year to January 27, 2003. Both agreements are extremely dated and contain information and requirements dating back to 1966. Federal law supersedes much of the text of the Agreements. As part of the franchise review and renewal process, the City Council created the Telecommunications Ad Hoc Committee on November 28, 2000 and charged it with the following tasks: A. Ordinance(s) Update - Work with City staff to update the City's Cable Television Ordinance and to create a separate Telecommunications ordinance (addressing wireless services, street encroachment fees, City infrastructure use fees, and antenna siting). B. Community Needs Assessment - Develop and conduct (with staff or expert assistance) a Community Needs Assessment. C. Public Information --Assist with explanation and community understanding City's regulatory ability (or lack thereof) regarding Cable Television. D. Council Policy on Use of City Facilities for Telecommunications — Develop a Council Policy relating to the manner in which the City reviews and approves requests for telecommunications infrastructure easements. The Committee (consisting of Council Members Heffernan and Adams and two residents, Ms. Leslie Daigle and Mr. Don Boortz) has been at work on these tasks for several months. This agenda item specifically relays the Committee's unanimous recommendation for a consultant - The Buske Group -- to perform a Community Needs Assessment. A Community Needs Assessment - sometimes called an Ascertainment - is a process described in federal law but not mandated. Since the City has never done an Assessment, the Committee believed it important to do one now as the franchise agreements near expiration - especially since significant technological advancements have developed in cable and Internet operations. What's in a Community Needs Assessment? A community needs assessment attempts to determine the community's satisfaction (or lack thereof) with its cable providers. It also attempts to determine the kinds of telecommunications and cable services that our community expects - more or less community programming, better government access, a different menu of channels, and much more. The Buske Group's proposal suggests (see Exhibit A of Attachment A): • A statistically -valid telephone survey of cable subscribers • Eight structured focus groups of cable user communities - government, education, business, community groups, and the general public • Coordination of existing strategic telecommunications and communications plans of businesses, government, and schools • Special meetings, including at least one public hearing before the City Council • Personal interviews with key and interested people in the community; and • A written final report to be presented to the Telecommunications Committee and to City Council Once the Assessment is complete, the Telecommunications Committee and the Council will use it in franchise renewal talks. The final, written report is an important tool in directing cable providers - via the new franchise - to conform to City needs. Importantly, the Needs Assessment and its results do NOT guarantee that a cable provider will fully comply with the recommendations of the Assessment. Indeed, the Assessment's main value is to arm the City Council with data enough to defend the City's negotiating position. The possibility always exists that a cable provider may disregard the wishes of the Council and the community and yet receive a new franchise anyway. That's how difficult it is nationwide to deny a franchise renewal to a provider that owns the cable in the ground. The Selection of the Buske Group. In Fall 2001, the Committee solicited proposals informally from 4-5 recommended vendors. The Committee narrowed down the responses to two providers - Telecommunications Management and The Buske Group. The Committee heard presentations by both companies in October 2001. Both consultants' proposals were similar in scope and cost. The Committee selected the Buske Group for a recommendation to Council based on Ms. Buske's presentation to the Committee, to staff, and to special counsel (Mr. Bill Marticorena of Rutan and Tucker). The Buske Group's proposed contract and scope of work entails an expenditure of $34,780 and an expected timeline of about 5 -6 months. ATTACHMENTS: Attachment A - Proposed Professional Services Agreement with The Buske Group, including the Scope of Services described in Exhibit A to the Agreement Attachment B -- Budget Amendment 2002 -_ City of Newport Beach NO. BA- 027 BUDGET AMENDMENT 2001 -02 AMOUNT: $3a,a7o.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues Ix from unappropriated surplus fund balance EXPLANATION: Increase in Budgetary Fund Balance AND X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase expenditure appropriations in the Assistant City Manager's Professional Services account in the amount of $34,870 for a Community Needs Assessment of telecommunications services. The proposed appropriation will come from General Fund unencumbered, surplus fund balance. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Eund Account REVENUE ESTIMATES (3601) FundlDivWrin Accotdnt EXPENDITURE APPROPRIATIONS (3603) Division Number Account Number Division Number Account Number Division Number Account Number Division Number Account Number Division Number Account Number Signed Signed Description Description Description 0320 Assistant City Manager 8080 Services - Professional & Technical Financial pproval: Administrat' a Services Director i Administrative App al: City Manager Amount Debit Credit $34,870.00 * $34,870.00 * Automatic System Entry. /- /6 -oa Date 1-14, o � Date Signed: City Council Approval: City Clerk Date PROFESSIONAL SERVICES AGREEMENT for a Community Needs Assessment — Cable TV THIS AGREEMENT, entered into this day of 2002, by and between the City of Newport Beach ( "City "), a municipal corporation, and The Buske Group, whose address is 3001 J Street, Suite 201, Sacramento, California, 95816, ( "Consultant'), is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. Consultant is a business providing professional services to the City under this Agreement. B. City engages Consultant to perform the services set forth herein. Consultant shall commence work upon execution of this Agreement and in accordance with a timetable of activities to be mutually agreed upon by the City and Consultant. C. The services to be performed by the Consultant include those services delineated in its proposal for a Community Needs Assessment — Cable TV ('Project') dated October 29, 2001, attached hereto as Exhibit A. D. The principal member of the Consultant, is for the purpose of this Project, Sue Buske. E. The City of Newport Beach has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to contract with Consultant under the terms of conditions provided in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned Parties as follows: 1. TERM The term of this Agreement shall commence on the 23rd day of January, 2002, and shall terminate on the list day of December, 2002, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Consultant shall diligently perform all the duties set forth in the scope of services, attached hereto as Exhibit A, the "Project', attached hereto and incorporated herein by reference. Community Needs Assessment, Pg 1 3. COMPENSATION TO CONSULTANT City shall pay Consultant for the services in accordance with the provisions of this Section and the scheduled billing rates, attached hereto as Exhibit B and incorporated herein by reference. No rate changes shall be made during the term of this Agreement without prior written approval of City. Consultant's compensation for all work performed in accordance with this Agreement shall not exceed the total contract price of Thirty -Four Thousand Eight Hundred Seventy Dollars ($34,870). 3.1 Consultant shall maintain accounting records of its billings which includes the name of the employee, type of work performed, times and dates of all work which is billed on an hourly basis and all approved incidental expenses including reproductions, computer printing, postage and mileage. 3.2 Consultant' shall submit monthly invoices to City payable by City within thirty (30) days of receipt of invoice subject to the approval of City. 3.3 Consultant shall not receive any compensation for extra work without prior written authorization of City. Any authorized compensation shall be paid in accordance with Exhibit B. City shall reimburse Consultant only for those costs or expenses which have been specifically approved in this Agreement, or specifically approved in writing in advance by City. 4. STANDARD OF CARE 4.1 All originals of all reports, surveys and documents produced under the terms of this Agreement shall be the property of the City. All services shall be performed by the Consultant or under Consultant's supervision. Consultant represents that it possesses the professional and technical personnel required to perform the services required by this Agreement, and that it will perform all services in a manner commensurate with the community professional standards. Qualified and experienced personnel who are not employed by City shall perform all services. Consultant represents and warrants to City that it has or shall obtain all licenses, permits, qualifications and approvals required of its profession. Consultant further represents and warrants that it shall keep in effect all such licenses, permits and other approvals during the term of this Agreement. 4.2 Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to approve or disapprove Consultant's work promptly, or delay or faulty performance by City, contractors, or governmental agencies, or any other delays beyond Consultant's control or without Consultant's fault. 4.3 Consultant shall have control over or charge of and shall be responsible for the Project's design, the construction means, methods, techniques, sequences or Community Needs Assessment, Pg 2 procedures, or for any health or safety precautions and programs in connection with the Project. These duties are and shall remain the sole responsibility of. Consultant. Consultant shall not have control over or charge of acts or omissions of employees of the City. 5. INDEPENDENT PARTIES City retains Consultant on an independent contractor basis and Consultant is not an employee of City. The manner and means of conducting the work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute Consultant or any of Consultant's employees or agents, to be the agents or employees of City. Consultant shall have the responsibility for and control over the details in means of performing the work provided that Consultant is compliance with the terms of this Agreement. Anything in this Agreement which may appear to give City the right to direct Consultant as to the details of the performance of the services or to exercise a measure of control over Consultant shall mean that Consultant shall follow the desires of City only with respect to the results of the services. 6. COOPERATION Consultant agrees to work closely and cooperate fully with City's designated Project Administrator, and any other agencies which may have jurisdiction or interest in the work to be performed. City agrees to cooperate with the Consultant on the Project. 7. PROJECT MANAGER Consultant shall assign the Project to a Project Manager, who shall coordinate all phases of the Project. This Project Manager(s) shall be available to City at all reasonable times during the Project term. Consultant has designated Sue Buske to be its Project Manager. Consultant, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Consultant warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 8. TIME OF PERFORMANCE Time is of the essence in the performance of the services under this Agreement and the services shall be performed by Consultant in accordance with a mutually - agreed upon schedule. The failure by Consultant to strictly adhere to the schedule, may result in termination of this Agreement by City, and the assessment of damages against Consultant for delay. Notwithstanding the foregoing, Consultant shall not be responsible for delays which are due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the services to be provided for the Project, Community Needs Assessment, Pg 3 each party hereby agrees to provide notice to the other party so that all delays can be addressed. 8.1 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition which purportedly causes a delay, and not later than the date upon which performance is due. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays, which are beyond Consultant's control. 8.2 For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by either telephone, fax, hand delivery or mail. 9. CITY POLICY Consultant will discuss and review all matters relating to policy and project direction with the Project Administrator in advance of all critical decision points in order to ensure that the Project proceeds in a manner consistent with City goals and policies. 10. CONFORMANCE TO APPLICABLE REQUIREMENT All work prepared by Consultant shall conform to applicable city, county, state and federal law, regulations and permit requirements and be subject to approval of the Project Administrator and City. 11. HOLD HARMLESS Consultant shall indemnify, defend, save and hold harmless City, its City Council, officers, and employees (collectively "Indemnitees ") from and against any and all loss, damages, liability, claims, allegations of liability, suits, costs and expenses for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, property damages, or any other claims arising from any and all acts or omissions of Consultant, its employees, agents or subcontractors in the performance of services conducted or performed or products provided pursuant to this Agreement. This indemnity shall apply even in the event of passive or concurrent negligence of Indemnitees, excepting only the sole negligence or willful misconduct of Indemnitees, and shall include attorneys' fees and all other costs incurred in defending any such claim. Nothing in this indemnity shall be construed as authorizing, any award of attorneys' fees in any action on or to enforce the terms of this Agreement. 12. INSURANCE Without limiting consultant's indemnification of Indemnitees, and prior to commencement of work, Consultant shall obtain and provide and maintain at its own expense during the term of this Agreement policy or policies of liability insurance of the type and amounts described below and satisfactory to City. Certification of all required Community Needs Assessment, Pg 4 policies shall be signed by a person authorized by that insurer to bind coverage on its behalf and must be filed with City prior to exercising any right or performing any work pursuant to this Agreement. Except workers compensation, all insurance policies shall add City as additional insured for all liability arising from Consultant's services as described herein. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Bests Key Rating Guide: unless otherwise approved by the City Risk Manager. A. Worker's compensation insurance covering all employees and principals of Consultant, per the laws of the State of California. B. Commercial general liability insurance covering third party liability risks, including without limitation, contractual liability, in a minimum amount of $1 million combined single limit per occurrence for bodily injury, personal injury and property damage. If commercial general liability insurance or other form with a general aggregate is used, either the general aggregate shall apply separately to this Project, or the general aggregate limit shall be twice the occurrence limit. C. Commercial auto liability and property insurance covering any owned and rented vehicles of Consultant in a minimum amount of $1 million combined single limit per accident for bodily injury and property damage. Said policy or policies shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days' prior notice has been given in writing to City. Consultant shall give City prompt and timely notice of claim made or suit instituted arising out of Consultant's operation hereunder. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. Consultant agrees that, in the event of loss due to any of the perils for which it has agreed to provide comprehensive general and automotive liability insurance, Consultant shall look solely to its insurance for recovery. Consultant hereby grants to City, on behalf of any insurer providing comprehensive general and automotive liability insurance to either Consultant or City with respect to the services of Consultant herein, a waiver of any right of subrogation which any such insurer of said Consultant may acquire against City by virtue of the payment of any loss under such insurance. 13. PROHIBITION AGAINST TRANSFERS Consultant shall not assign, sublease, hypothecate or transfer this Agreement or any for the services to be performed under this Agreement, directly or indirectly, by Community Needs Assessment, Pg 5 operation of law or otherwise without prior written consent of City. Any attempt to do so without consent of City shall be null and void. 14. CONFIDENTIALITY The information, which results from the services in this Agreement, is to be kept confidential unless the release of information is authorized by City. 15. CITY'S RESPONSIBILITIES In order to assist Consultant in the execution of his responsibilities under this Agreement, City agrees to, upon request of Consultant, assist with the preparation of documents, surveys, mailings, public hearings, Council reports, and meetings. 16. ADMINISTRATION This Agreement will be administered by the City Manager's Office. Marilee Jackson shall be considered the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his /her authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 17. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City to examine, audit and make transcripts or copies of such records during normal business hours. Consultant shall allow inspection of all work, data, documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 18. WITHHOLDINGS City may withhold payment of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Consultant shall not discontinue work as a result of such withholding. Consultant shall have an immediate right to appeal to the City Manager or his designee with respect to such disputed sums. Consultant shall be entitled to receive interest on any withheld sums at the rate of seven percent (7 %) per annum from the date of withholding of any amounts found to have been improperly withheld. 19. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other consultants in connection with the Project. Community Needs Assessment, Pg 6 20. CONFLICTS OF INTEREST A. The Consultant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making, or participating in making decisions that will foreseeably financially affect such interest. B. If subject to the Act, Consultant shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for termination of this Agreement by City. Consultant shall indemnify and hold harmless City for any and all claims for damages resulting from Consultant's violation of this Section. 21. SUBCONSULTANT AND ASSIGNMENT A. Except as specifically authorized under this Agreement, the services included in this Agreement shall not be assigned, transferred, contracted or subcontracted without prior written approval of City. 22. NOTICES All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the third business day after the deposit thereof in the United States mail, postage prepaid, first class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: Attn: Marilee Jackson City of Newport Beach P. O. Box 1768 Newport Beach, California 92658 -8915 949 - 644- 3031(phone) 949 - 644- 3020(fax) All notices, demands, requests or approvals from City to Consultant shall be addressed to Consultant at: Attn: Sue Buske The Buske Group 3001 J Street, Suite 201 Sacramento, California 95816 916- 441- 6277(phone) 916- 441- 7670(fax) Community Needs Assessment, Pg 7 23. TERMINATION In the event either part hereto fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) days, or if more than two (2) days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. City shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving seven (7) days' prior written notice to Consultant as provided herein. Upon termination'of this Agreement, City shall pay to the Consultant that portion of compensation specified in this Agreement that is earned and unpaid prior to the effective date of termination. 24. COMPLIANCES Consultant shall comply with all laws, state or federal and all ordinances, rules and regulations enacted or issued by City. 25. WAIVER A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 26. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the Parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. Any modification of this Agreement will be effective only by written execution signed by both City and Consultant. 27. PATENT INDEMNITY The Consultant shall indemnify City, its agents, officers, representatives and employees against liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in Consultant's drawings and specifications provided under this Agreement. Community Needs Assessment, Pg 8 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: � By: ( Robin auson Assistant City Attorney for the City of Newport Beach CITY OF NEWPORT BEACH: A Municipal Corporation Tod W. Ridgeway Mayor of the City of Newport Beach CONSULTANT: 0 Sue Buske, President The Buske Group Community Needs Assessment, Pg 9 EXHIBIT A II. SCOPE OF WORK A. Overview The Buske Group, with some assistance from City staff, proposes to conduct a comprehensive needs assessment of community organizations, institutions, local businesses and residents to identify their current levels of usage of and their satisfaction with the services provided by Adelphia and Cox Communications. Attitudes about possible future usage of a variety of new cable communication services will also be explored. The proposed Heeds assessment will use a variety of information - gathering techniques, discussed in detail below. The Buske Group has found through many years of experience that using multiple information - gathering techniques is the most effective way to assure that: (1) the needs assessment reflects input from a broad cross - section of the community; (2) a more in -depth level of research regarding needs and interests is conducted; and (3) local government officials obtain informed opinions. This is of particular importance when dealing with issues regarding new technologies. The information - gathering techniques would include: • A statistically valid random telephone survey of cable television subscribers in Newport Beach; • Eight structured focus group workshops to be held at various locations throughout Newport Beach; • Collection and analysis of various strategic and long range plans, technology plans, and communications plans that have been prepared by local government agencies, educational institutions, and organizations; • Special meetings and personal interviews; and • Public hearings to provide an opportunity for public comment on issues relevant to the needs assessment. EXHIBIT A B. Telephone Survey of Cable Subscribers Group W Communications, our survey research partner, will conduct telephone interviews with 400 adult respondents from randomly selected households in Newport Beach. This group of respondents would be subscribers to the cable television service of either Adelphia or Cox Communications. These respondents will be asked to answer a series of straightforward questions about the cable operator's current programming, customer service practices and related matters. They would also be asked for their opinions regarding a number of future services that could be offered via the cable system. Prior to conducting the survey, a questionnaire will be prepared and submitted to the City for its input and approval. The survey will be designed to allow for analysis of the entire sample, city wide, and also to allow for analysis of various subsets of the sample, including subscribers of either Adelphia or Cox Communications. Cross tabulation analysis will be conducted utilizing various demographic information provided by the respondents. To determine any difference of opinion or experience between subscribers of Adelphia and subscribers of Cox Communications, the analysis will isolate where those differences are significant, and note them in a single survey report. The survey sample would have a ±5% sampling error at a 95% level of confidence. This means that, in 95 out of 100 cases, the results of surveying the sample group will be within 5% of the result that would be obtained by surveying all households that subscribe to cable television in Newport Beach. The margin of error for analysis of any sub - samples (e.g., only Adelphia subscribers or only Cox Communications subscribers) will be greater. C. Focus Group Workshops The Buske Group proposes to conduct a series of eight structured workshops for primary cable user groups, including government agencies, educators, community organizations, business representatives, and the general public. Participants in the workshops will be asked to answer questions designed to identify future cable - related needs and interests and any concerns regarding their cable operator's performance to date. EXHIBIT A Before the focus group sessions are held, The Buske Group personnel will participate in a workshop with City staff and representatives of other designated entities (e.g., a "Cable TV Task Force "). The purpose of this workshop would be to discuss the activities to be undertaken during the community needs assessment and to enlist their participation in (1) identifying community leaders to invite to the focus group sessions and (2) publicizing the focus group sessions and public hearing(s). Each workshop will begin with an intensive introduction explaining the nature of modern cable service in critical areas (e.g., programming, customer service, PEG Access, and non - entertainment uses of the system, including video, voice and data services). In each targeted workshop, The 8uske Group will emphasize the industry developments most pertinent to the participants and the experiences of similar types of organizations throughout the United States. Current and developing federal regulatory policies will be summarized as needed. Ample opportunity for questions and clarifications will be provided. Following the introductory educational segment of the workshop, a group brainstorming process will allow participants to clarify their thinking on what uses of cable service they would most like to see maintained, or made possible, through the franchise renewal process. Each participant will complete the workshop by filling out a questionnaire designed clearly to identify the user needs that the City may seek to fulfill in the renewal process. Workshop participants will also be asked to identify existing problems with the delivery of cable services. Community needs and interests in the areas of PEG Access usage will be explored in depth. PEG Access represents a rich opportunity for community development through the use of the cable communications medium. The workshops will help document the future cable communications services desired in Newport Beach, taking into account the experiences of comparable communities. These workshops will complement information gathered through the telephone survey. EXHIBIT A These structured workshops help to assure that each participant's expression of needs, interests and concerns is well- informed. These workshops are also successful in developing significant involvement in the franchising process by a wide variety of vitally interested groups. The method is efficient, because it will permit the City to obtain information relevant to a number of critical franchising tasks through a series of simple and inexpensive sessions. In short, the workshop method creates a sizable, informed, and involved constituency, often useful in subsequent negotiations and in the political process. D. Collection and Analysis of Strategic and Long Range Plans The Buske Group will collect and analyze various strategic and long range plans, technology plans, and communications plans that have been prepared by government agencies, educational institutions, business associations, and community groups. This information is a valuable representation of community issues, needs, and interests. E. Special Meetings and Personal Interviews After the focus group sessions have been conducted, it may be necessary to conduct follow -up meetings and/or send a mailing to representatives of groups who were not able to participate in the workshops. It is important to assure that a representative cross- section of community organizations, institutions, and interest groups has provided input to the process. The Buske Group would conduct any necessary meetings to augment the information gathered through the focus groups and questionnaire feedback. F. Public Hearing The Buske Group team recommends that the City should schedule a hearing to provide an opportunity for the public to address each cable company's past performance and the community's future cable - related needs. This will not only permit Newport Beach to comply with any formal Cable Act renewal requirements; it will maximize public participation and support for the renewal process. EXHIBIT G. Written Reports The community needs assessment will conclude with the preparation and submission of written reports that will compile and analyze input gathered from Newport Beach residents and organizations through the (a) telephone survey results; (b) focus group brainstorming sessions and questionnaire responses; (c) strategic and long range plans; (d) special meetings and personal interviews, and (e) public hearing testimony. Typically, The Buske Group team issues a separate, detailed report on the telephone survey(s) separately from the other material. All information, including an executive summary, would be contained in the Needs Assessment Report. The report(s) can be presented as part of any renewal proceedings conducted by Newport Beach, consistent with federal law. EXHIBIT B PROPOSED PROJECT BUDGET FOOTNOTES TO PROPOSED PROJECT BUDGET: 1. Consultant fees are estimated on an hourly basis: Buske @ S125 1hour; VanDalsen @ $90 1hour; Welsh @ $75 /hour; Data Input @ $30 /hour. 2. The telephone survey fees are present as a range of figures. to be based upon the amount of phone calls required to complete 400 interviews per survey. 3. Includes travel, lodging, meals, and associated costs such as clerical, telephone, postage. 4. The Total Cost is presented as a range that varies from the lowest possible cost under Telephone Survey Option One to the highest possible cost under Telephone Survey Option Two. Prof. (1) Task Consultant Hours Fees Expenses Total A. Telephone Survey 1. Option One Wilson $9,200 - $9,500(2) (one telephone survey; VanDalsen 8 5720 720 400 interviews) $9,940 - $10,220 2. Option Two Wilson $16,000 - $16,500 2) (two telephone surveys; VanDalsen 12 $1,080 1,080 400 interviews each) $17,080 - $17,580 B. Focus Group Workshops Buske 64 $8,000 $2,000(3) $10,000 Welsh 40 $3,000 $700(3) 3.700 $13,700 C. Collect & Analyze Plans Welsh 10 $750 $750 (3 ) D. Meetings /Interviews Buske 16 $2,000 $300 $2,300 3 E. Public Hearing Buske 8 $1,000 $3000 $1,300 F. Written Reports Data Input 40 $1,200 1,200 VanDalsen 60 55,400 5.400 $6,600 TOTAL COST: $34,590 - $42,230(4) FOOTNOTES TO PROPOSED PROJECT BUDGET: 1. Consultant fees are estimated on an hourly basis: Buske @ S125 1hour; VanDalsen @ $90 1hour; Welsh @ $75 /hour; Data Input @ $30 /hour. 2. The telephone survey fees are present as a range of figures. to be based upon the amount of phone calls required to complete 400 interviews per survey. 3. Includes travel, lodging, meals, and associated costs such as clerical, telephone, postage. 4. The Total Cost is presented as a range that varies from the lowest possible cost under Telephone Survey Option One to the highest possible cost under Telephone Survey Option Two.