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HomeMy WebLinkAbout1998-030 Audit of Cable TV Franchise Fees• • • RESOLUTION NO. 30-98 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, AUTHORIZING AND DIRECTING THE MAYOR AND VILLAGE CLERK TO ENTER INTO AN AGREEMENT WITH LEWIS & ASSOCIATES ATTACHED AS EXHIBIT "A", WHICH AGREEMENT IS TO SECURE THE SERVICES FOR PERFORMANCE OF AN AUDIT TO CABLE TELEVISION FRANCHISE FEES PAID THE VILLAGE COVERING THE PERIOD FROM JANUARY 1, 1995 THROUGH DECEMBER 31, 1997; AND, PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA: Section 1, The Village Council of the Village of North Palm Beach, Florida, does hereby approve the agreement with Lewis & Associates attached as Exhibit "A", which agreement is for the purpose of securing the services for performance of an audit to cable television franchise fees paid the Village covering the period from January 1, 1995 through December 31, 1997. Section 2. The Mayor and Village Clerk are hereby authorized and directed to execute the agreement with Lewis & Associates set forth in Exhibit "A" for and on behalf of the Village of North Palm Beach. Section 3 This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED THIS 9th DAY OF JULY , 1996. • (VILLAGE SEAL) ATTEST: • • MAYOR VILLAGE CLERK • • 2131 Hollywood Boulevard, Suite 208 • Hollywood, Florida 33020 • Phone/Fax: (954) 922.9002 June 15, 1998 Mr. Dennis Kelly Village Manager Village of North Palm Beach. 501 U.S. Highway 1 North Palm Beach, Florida 33408 Dear Mr. Kelly: This letter is to set forth the Agreement of the Village of North Palm Beach to retain the firm of Lewis & Associates for the purpose of representing the Village in the area of cable television franchise fee compliance verification covering the period of January 1, 1995 through December 31, 1997. In connection with this engagement, the services to be performed are as follows: - 1. Identify what specific sources Of revenue'are subject to franchise fees by reviewing franchise agreement. 2. • On -site visits to franchisee to obtain and examine relevant accounting data and supporting documentation. 3. Identify all revenue sources by classification, by ',Strand evaluate allocation methodology.and•overall accuracy. • 4._ Test the cable operator's billing system to determine if all active addresses within the Village were included in the franchise fee remittances.,'. 5. Recalculate the franchise.fee due the Village using the approved ' .effective rates. •- . • 6. Issue report summarizing and explaining our findings. 7. Assist Village in negotiating financial settlement with cable operator. We will require the Village's assistance in the following areast 1. Provide copy of franchise•agreement and_ related ordinances. • 2. Provide•copies of all franchise fee payment remittances along with supporting documentation covering the.period under examination. 3. Provide listing of zip codes located within the franchise area. 4. Provide hard copy listing ofall street addresses located within the Village'sfranchise area. 4. Provide verification of specific addresses which contain the above zip codes' but are not reflected in franchisee.remittances: Lewis & Associates will extract this information from the cable operator's records based upon data indicated in Item 4 above. • • For services rendered in connection with the scope of this assignment we,will charge a fee of $7,500 plus actual out-of-pocket costs. • Out-of-pocket costs are.expected tobe in the area of $200 if the records to be examined are located in Palm Beach County. The fee is payable as follows: - . S3,750 upon signing of agreement. $3,750 upon delivery of report Out-of-pocket costs will be billed, as incurred. If the foregoing meets with your approval, please so indicate by*signing this letter where indicated -and returning an executed copy to our office for our records. We look forward to working with you and the other Village Officials on this project. Sincerely, Scott Lewis President By: Village of North Palm Beach Date •