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SERVICES\\Cost Control Associates-Review Cable Franchise Fee – 2-11-19
RESOLUTION AUTHORIZING ENGAGEMENT OF COST CONTROL
ASSOCIATES, INC. TO REVIEW CABLE FRANCHISE FEES
RESOLUTION NO.: __________________________________________________, 2019
INTRODUCED BY: __________________________________________________
WHO MOVED ITS ADOPTION
SECONDED BY: __________________________________________________
WHEREAS, the Queensbury Town Board wishes to engage the services of a consultant to
review cable franchise fees in order to ensure utility compliance with franchise agreements, and
WHEREAS, in the past the Town Board engaged the services of Cost Control Associates,
Inc., (Cost Control) to perform these types of services and was pleased with its services, and
WHEREAS, by letter dated January 28, 2019, Cost Control has offered to review the
Town’s cable franchise fees with Cost Control to be compensated for such services from refunds
received by the Town and future cost savings as set forth in Cost Control’s proposed Cost
Reduction Agreement presented at this meeting,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board hereby approves and authorizes engagement
of the services of Cost Control Associates, Inc. to review cable franchise fees and further authorizes
and directs the Town Supervisor to sign the Cost Reduction Agreement and Letter of Authorization
substantially in the form presented at this meeting as well as any other needed documentation, with
the costs of the services to be paid for from refunds received by the Town and future cost savings,
and
BE IT FURTHER,
RESOLVED, that the Town Board further authorizes and directs the Town Supervisor,
Town Budget Officer and/or Town Counsel to take any further action necessary to effectuate the
terms of this Resolution.
th
Duly adopted this 11 day of February, 2019, by the following vote:
AYES :
NOES :
ABSENT:
C A Contr I
Associates, Inc. Your Energy & Telecom Experts
January 28, 2019
Ms. Barbara Tierney
Budget Officer
Town of Queensbury
742 Bay Road
Queensbury,NY 12804
Re: Cable Franchise Fee Review
Dear Barb:
As per our conversation, Cost Control Associates, Inc (CCA)would be happy to conduct a
review of cable franchise fees in order to ensure utility compliance with executed franchise
agreements. Specific areas to be reviewed include:
• Incorrect classifications of revenue
• Sources of revenue included in the calculation of your payment
• Subscribers not properly classified in your cable provider's billing system
• Accuracy of calculations and remittances
• General mathematical errors
A full report of findings will be made after our initial review is completed.
In order to begin our review,the following information would be required:
• Copies of all current cable franchise agreements
• Copies of all payments made by the Town for cable franchise fees during the past 12
months
• Copies of any reports or other documentation provided by the cable company within the
last 12 months
• A Letter of Authorization (LOA). A blank LOA is attached. Please copy onto Town
letterhead, sign and return to CCA.
• Executed contract. Please see contract attached.
Fees for our services are entirely based on the refunds and cost savings we are able to produce.
Our contingency fee percentage is 23%which is payable only after the Town received refunds
and/or cost savings.
310 Bay Road - Queensbury - New York 12804
Phone:(518) 798-4437 - Fax:(518) 798-1735 - www.costcontrolassociates.com
f
Ms. Barbara Tierney
January 28, 2019
Page 2 of 2
If you have any questions or would like to discuss this review further,please feel free to contact
me directly.
Sincerely,
A'1 '
Keith Laake
President
Attachments
310 Bay Road - Queensbury - New York 12804
Phone:(518) 798-4437 - Fax:(518) 798-1735 - wwwcostcontrolassociates.com
C st Contr - 1
Associates, Inc.
Cost Reduction Agreement:
Government Program
This Agreement,made as of the last date signed below, is by and between the Town of Queensbury(hereinafter
referred to as CLIENT)and Cost Control Associates, Inc.(hereinafter referred to as CCA).
I. Services
Cost Recovery and Reduction Services: CCA will review cable franchise fee revenues as specified by CLIENT for
the purposes of obtaining refunds(by check or account credit)and identifying cost reductions. CCA will file
claims,negotiate with suppliers,and implement CLIENT-approved cost-reducing changes. CCA will submit a
report of cost-reducing changes to CLIENT for CLIENT's review and approval.
II. Fees
CLIENT will pay fees to CCA as follows:
A. Refunds: Any refunds recovered due to CCA's efforts are subject to a one-time fee equal to 23%of each
refund.This fee is payable after the CLIENT has received the refund check or credit,and
B. Client-approved Cost Reductions: For any cost reductions recommended by CCA and approved for
implementation by CLIENT, or as a result of a billing error correction, CCA will share in the resulting savings
at a 23%rate for the first 24 months following implementation of the changes. This fee will be payable on a
monthly basis, or CLIENT may elect to prepay the entire amount. Cost-reduction recommendations
implemented during the term of this Agreement and within 24 months thereafter are subject to this fee.
III. Term
The initial term of this Agreement is one year.After the initial term,this Agreement will remain in effect on a
month-to-month basis unless cancelled in writing by either party with at least 30 days' written notice.Any fees
due CCA, as indicated in Section II above, will continue to be payable,regardless of cancellation or expiration of
this Agreement,for Findings in Process at the time of cancellation or expiration of this Agreement. Findings in
Process include refunds identified but not yet collected,cost reductions implemented but for which all fees have
not yet been billed,and cost reductions identified but not yet implemented in the event that they are implemented.
IV. Other
A. Except as noted on a referenced attachment to this Agreement,CLIENT is not currently working on pursuing
refunds or implementing cost-reduction items. If CLIENT becomes aware of a refund or cost-reduction
opportunity that is not part of CCA's efforts,and CLIENT elects to pursue that opportunity on its own,then
CLIENT agrees to notify CCA in writing upon CLIENT'S discovery of that opportunity.
❑ If checked, please see attachment.
B. CLIENT will cooperate with CCA by signing letters of authority to suppliers, supplying copies of appropriate
bills,completing forms,and providing other documentation and information. CLIENT agrees that it will not
undertake new price negotiations or rate changes associated with the Services in Section I until CCA's
analysis and report for each area is presented to CLIENT. CCA should work directly with suppliers to
effectively correct billing errors,negotiate price and rate changes, and implement CLIENT-approved cost-
reduction items. If in response to cost-reduction recommendations presented by CCA, CLIENT chooses to: 1)
implement a similar cost-reducing change,2)pursue on its own a refund or implement a cost-reduction item
that was recommended by CCA,and/or 3)benefit from a refund or cost-reduction item based on an issue
identified by CCA but available to CLIENT through the actions of third parties, CCA is still entitled to its
Cost Reduction Agreement: Government Program-23, rev. 12-26-17, Page 1 of 2
fees.
C. CCA is permitted by CLIENT to use specialists on a subcontract basis in the performance of the work as
described in this Agreement at no additional cost to CLIENT, if CCA deems the use of such specialists to be
beneficial.
D. Fees are payable to CCA within 20 days of date invoiced. Late fees are payable on invoices more than 10 days
past due at the rate of 1.5%per month. In the event that an invoice remains past due for more than 75 days,
CCA may issue a one-time invoice for the projected total amounts due CCA over the remaining term of the
cost-savings share period. Such invoice will be due immediately.
E. This is the entire Agreement between the parties.
F. In the unlikely event of any disputes,the parties will attempt to settle the dispute among themselves. If
unsuccessful,the dispute will be submitted to the American Arbitration Association. The award of the
arbitrator will include costs and reasonable attorneys' fees for the prevailing party.
CLIENT by:
Signature Date
Print Name Title
CCA by:
Signature Date
Print Name Title
Cost Reduction Agreement: Government Program-23, rev. 12-26-17, Page 2 of 2
Federal Tax ID:
Date:
LETTER OF AUTHORIZATION
To Whom It May Concern:
Cost Control Associates has been engaged to review our cable franchise fees. This letter
authorizes Cost Control Associates to act as an agent and consultant on our behalf in all matters
pertaining to franchise fees including but not limited to access to relevant records or any other
infonnation deemed necessary to conduct the review as may be allowed pursuant to federal
and/or state laws, rules or regulations.
Cost Control Associates is also authorized to request refunds if necessary and approve resolution
of requested refunds.
This authorization will remain in effect for a period of one year from the above date. If you have
any questions about this authorization, please contact me.
Sincerely,
Signature
Name (Printed)
Title