Katello HTTP proxy problem

I am trying to get Katello 1.4 working with our HTTP proxy.
I used katello-configure to enable the proxy configuration:

katello-configure --user-pass=<password> --proxy-url=http://<proxy server>
–proxy-port=80 --proxy-user=<proxy user> --proxy-pass=<proxy password>

This creates the proxy configuration in /etc/katello/katello.yml

However I keep getting this error message every time I try to sync:

There were errors syncing repository 'epel-rhel6-x86_64'. See notices page
for more details.

Repository synchronization works fine when I use a local copy of the same
repository.
I saw this bugzilla and was wondering if this is still a known issue:

https://bugzilla.redhat.com/show_bug.cgi?id=985106

Regards,
Aaron Johnson