SR-501-001 (2)
F:\CMANAGER\Staff Reports\Arnold&Porter.doc
City Council: April 23, 2002 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Professional Services Agreement with Arnold & Porter for Cable
Franchise and Related Services
Introduction
This report recommends that the City Council authorize a professional services
agreement in the amount of $126,000 with Arnold & Porter for cable franchise
and related financial and technical services.
Background
The law firm of Arnold & Porter was selected to provide cable franchise and
related services due to their extensive experience in cable and
telecommunications matters. Arnold & Porter, which has extensive municipal
cable experience, provides expert legal advice to the City, drawing on the
additional expertise of Kaiser, Scherer & Schlegel for financial analysis and
Susan Herman Consulting for policy and technical assistance.
Through Arnold & Porter the City has received invaluable assistance in its efforts
to resolve the long-standing dispute over the operation of the cable system in the
City of Santa Monica. Negotiations have been contentious, unpredictable and
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protracted. During the current fiscal year, Arnold and Porter has provided
approximately $54,000 in services related to the cable franchise and settlement
agreements under a purchase order agreement with the City. Additional services
are required for legal, technical and policy assistance related to construction and
maintenance of the proposed City institutional network as well as for analysis and
evaluation of new financial information concerning Adelphia?s financial
qualifications and potential sale of the system. Finally, services for rate regulation
to the City are also included.
Financial Impact
Funds in the amount of $76,000 are available in account 01274.555060; and
funds in the amount of $50,000 are available for the institutional network lease
from account # C01046999.589000.
Recommendation
It is respectfully recommended that City Council authorize a professional services
agreement with Arnold & Porter for legal, technical and financial assistance not to
exceed $126,000.
Prepared by: Joseph Lawrence, Assistant City Attorney
Kathryn Vernez, Assistant to the City Manager for
Government Relations
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