...the audio sounds distorted or almost slurry/scrambled and almost unitelligable.
I figured that there is a gain problem between what was recorded to where it is broadcast at the TV provider's location. The city's IT team said everything is fine on their end and the TV provider is telling them that everything is fine on their end, so it becomes the blame game.
Brad,
Have you heard the audio for yourself? I would get them to let you follow the process they go through so that you can hear the "good" and "bad" audio. That could let you in on what the problem is.
When someone says "slurry" or "scrambled", I usually think the weather...or eggs, but in this case, it may be digital artifacts from crappy compression/conversion. (Think crappy mp3 recording with all that digital hash that reminds you of being in a flushing toilet.)
If there is a compressor in use (most likely) you can check to see just how much it's squashing the mix. If you have a Qbox or similar device, bring it and a pair of headphones. Check the signal chain one device at a time if possible to eliminate potential sources of distortion.
Report back when the issue is resolved...inquiring minds want to know.