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RESOLUTION NO. 5,993
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO A CONTRACT AND LETTER OF AGREEMENT
WITH TELECOMMUNICATIONS MANAGEMENT CORPORATION
FOR THE CITY OF LITTLE ROCK; AND FOR OTHER PURPOSES
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
LITTLE ROCK, ARKANSAS .
SECTION 1 . The City Manager is hereby authorized to enter
into a contract with Telecommunications Management Corporation
wherein Telecommunications Management Corporation will evaluate
the cable television bid proposals . A copy of the contract and
letter of agreement is attached to this Resolution and made a
part hereof as though set out herein word for word.
SECTION 2 . Telecommunications Management Corporation will
give its recommendations of the proposals by priority.
SECTION 3 . This Resolution shall be in full force and effect
from and after its adoption .
ADOPTED : August 15, 1978
ATTEST: pent 46d/ APPROVED
City Clerk Mayor
' p111°" TELECOMMUNICATIONS MANAGEMENT CORP.
E, ■� 6380 Wilshire Boulevard • Suite 808 • Los Ahgeles, California 90048 (213) 653-0810
July 27 , 1978
Ms . Susan Fleming
City Manager' s Office
City of Little Rock
City Hall
Markham & Broadway
Little Rock, Arkansas 72201
Dear Ms . Fleming:
In response to your inquiry, Telecommunications Management
Corp. (TMC) is pleased to provide this quotation to provide
consultant services to the City of Little Rock in connection
with the evaluation of cable television franchise applications .
It is our understanding that the City intends to solicit
applications by September 1, 1978 , with a due date of October 16 ,
and a desired evaluation report by December 13. There is no
problem in TMC meeting these deadlines .
As general background information, Telecommunications
Management Corp. (TMC) is a professional consultant firm
specializing in providing technical, economic and management
services in the general field of telecommunications , with
particular emphasis upon cable communications and cable tele-
vision systems . We have no ties with any system operator or
equipment manufacturer, and are completely independent in our
judgements .
About 60% of TMC ' s revenues derive from government
clients, primarily at the municipal level, although work has
also been performed for state and federal agencies . An addi-
tional 20% of revenues is derived from research and non-profit
organizations . A list of representative clients and assign-
ments is attached.
Many of these assignments included the task of evaluating
cable television franchise applications . Thus , TMC ' s principal
staff has specific and intensive experience in the kind of
evaluation required by the City of Little Rock.
4
Ms. Susan Fleming
July 27, 1978
Page 2
In this respect, the following points may be noted:
o TMC has developed a formal, objective
procedure for evaluation of franchise
applications. The criteria and weighting
factors are submitted for approval by the
City. Once approved, they are applied in
a consistent manner so that the evaluation
can be reviewed and completely audited by
the City and all applicants.
The technique, while relatively simple,
avoids the comparison of "apples against
pears" which so often takes place with
respect to the many complexities inherent
in cable system proposals . Consequently,
agreement or disagreement with the evaluation
are not clouded in semantics or ambiguities .
o TMC' s background includes not only the
necessary experience in cable system
economics , but also in the ancillary technical
and management factors that have a strong
impact upon economic forecasts and projec-
tions . It is impossible, for example, to
analyze accurately a 10-year or 15-year
economic projection for a cable system
without this technical and management
experience.
o TMC, in its economic analysis of cable
systems , utilizes the most modern and
powerful analytic tools, including computer
modeling. TMC has updated and modified
industry-standard models , such as those
developed at Stanford University for the
National Cable Television Association, and
at the Rand Corporation for its many cable
studies, and has applied its updated program
to a large number of systems.
All of the above factors are considered important in terms
of estblishing TMC ' s qualifications to be of service to the
City of Little Rock. Nevertheless, the best indications of
TMC' s capability must come from two sources :
o Examples of TMC' s actual contract-end-items ,
such as reports and publications .
o Client references.
0
I T1 1.3
Ms. Susan Fleming
July 27, 1978
Page 3
Consequently, TMC is submitting, for the information of
City of Little Rock officials, copies of recent assignment
reports. Any other of our contract end-items , if not con-
sidered proprietary by the client, is also available.
Also provided are typical client references . Additional
references can be provided if desired. TMC urges the City of
Little Rock to feel free to contact any of our clients at any
time to determine the level of satisfaction with TMC's
performance.
The proposed Statement of Work, including terms and
conditions , is provided as an attadhment and may be used as
part of a contractual document, if acceptable to the City.
We have no objection to inclusion of any other contractual
requirements considered standard for Little Rock.
We trust that this proposal is fully responsive to the
City of Little Rock' s requirements , and we look forward to
working with the City on this assignment.
Thank you for the opportunity to offer our services.
Sincerely,
x /�7
CARL PILNICK
President
CP/k
Attachment
Enclosures
STATEMENT OF WORK
EVALUATION OF CATV FRANCHISE APPLICATIONS
FOR THE CITY OF LITTLE ROCK
I. Scope.
Telecommunications Management Corp. (TMC) shall perform
an evaluation of the CATV franchise applications received by
the City of Little Rock.
The evaluation shall include, but not necessarily be
limited to, the following, for each application:
o Analysis of degree of responsiveness to
the City' s requirements, as reflected in
the solicitation of applications.
o Technical analysis of proposed cable system
design, capacity, flexibility, growth
potential, and capability to provide
services of interest to the City.
o Financial analysis of applicants ' proforma
projections, with an indication of the degree
of realism reflected in the projections .
o Analysis of benefits to cable subscribers,
such as services offered, rates, etc.
o Analysis of benefits to the City, such as
franchise fees and other considerations .
o Evaluation of the strengths and weaknesses
of each applicant.
The end-product shall be a written report, providing both
the details of the evaluation and the conclusions reached. The
report shall be completely auditable, in that the rationale for
all conclusions shall be included.
II. Methodology
The methodology and evaluation procedures used shall be
generally similar to those described in the TMC report, "City
of Jacksonville -- Evaluation of Cable Television Franchise
Applications" , modified to meet the City of Little Rock's
special requirements.
I
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TMC shall submit to the City, for its approval or modifi-
cation, the criteria and weighting factors proposed for use in
the evaluation. These shall be submitted within one week after
authorization to proceed. The City ' s approved version shall
be utilized.
III . Personnel
Mr. Carl Pilnick, President of TMC, shall be the Principal
Consultant for this assignment, with support from other TMC
personnel as required.
IV. Schedule
TMC shall submit its proposed evaluation and weighting
criteria to the City within one week after contract initiation,
in a form similar to Tables 1 and 2 of the above-referenced
City of Jacksonville report. TMC shall deliver the final
evaluation report no later than December 4 , 1978.
V. Cost
TMC shall perform all tasks, to the City ' s satisfaction,
on a firm, fixed-price basis . The price includes an initial
visit to Little Rock, a visit to review the final report with
the City, and one visit to attend the public hearing or Board
of Directors session at which the issue of cable television
franchises will be discussed. The cost of additional visits ,
if desired by the City, shall be negotiated at TMC ' s standard
man/day rates, plus out-of-pocket expenses .
The price shall be determined by the number of applications
received and evaluated, as follows :
1-2 applications $ 5, 000
3-5 applications $ 7 , 800
6 or more applications $ 9 , 500
TMC shall invoice the City for 60% of the total price
four weeks after contract inception. The remaining 40% shall
be invoiced at the time of submission of the final report,
and shall be due upon City acceptance of the report.
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