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280575 WHI7E ,- C�TV CLERK "� PINK �FINANCE GITY �F SAINT PALTL Council CANARV - DEPARTMENT 8!_UE - �jAVOR - Flle NO. � � �� ' �� cil Resolution �r�� Presented By Referred To Committee: Date Out of Committee By Date WHEREAS, on June 30, 1983 the Council for the City of St. Paul unanimously adopted a resolution directing the City Attorney to prepare a resolution formalizing the award of a cable communications franchise to Nor-West Cable Communications Partnership (hereinafter Nor-West) ; and WHEREAS, the Council finds that the Nor-West proposal meets the minimum requirements of the City' s Request for Proposals and of the cable statutes and regulations for the State of Minnesota; and WHEREAS, the Council finds the following elements of the Nor-West proposal to be determining factors in the award of the cable communications franchise to Nor-West: 1. Ka.lba Bowen Associates' (the City' s consultant) opinion that Nor-West will be able to generate the funds required for the St. Paul system; 2. Nor-West' s proposal' s elements of local ownership and control and the established reputations of the Nor-West partners as successful businessmen; 3. Nor-West' s combination of service offerings and rates so as to offer the most service for the least amount of money; 4. Nor-West' s choice of Metrovision, a company with proven management and a good record� to ma.na.ge the system; COUIVCILMEN Requested by Department of: Yeas Nays Fletcher GaO� [n Favor Masanz Nicosia scnetbe� Against BY ' Tedesco Wflson Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY �/� �� ?�R r V� By. t�pproved by A�lavor: Date Approved by Mayor for Submission to Council By BY : - . ' ' ' . ., � ' � _ ,,,� �� ` , ��?;�±�� .�, _ : e Page 2. 5. Nor-West' s intent to contract with the St. Paul Cable Cooperative for local origination programming; 6. Nor-West' s significant commitments to education; 7. Nor-West' s commitment to offer interactive and computer communication in year one of the franchise. and; WHEREAS, the Council has evaluated Nor-West' s proposal as to: 1. Ownership, fitness and administration; 2. Cable communication services ; 3. Economic and financial structure; 4. Engineering and technical design and expertise. now, therefore, be it RESOLVED, that contingent upon negotiation of a final agree- ment with Nor-West Cable Communications Partnership leading to the enactment of the franchise ordinance, subject to final approval by Nor-West, the City Council and the Mayor and further contingent upon the issuance to Nor-West of a certificate of confirma.tion by the Minnesota Cable Communications Board, a fifteen year non- exclusive franchise to operate a cable communications system is hereby awarded to Nor-West Cable Communications Partnership, and that the proper City officers be authorized to negotiate a final agreement with Nor-West subject to the above-named contingencies ; and be it further RESOLVED, that any expenditure of funds and/or formalization of third party contracts by Nor-West in anticipation of final approval by Nor-West, the City Council, the Mayor and the Minnesota . y�IHI'�E - CITV CLERK � ' ' COIIRC11 PINK - FINANCE G I TY OF SA I NT PA LT L CANARV'-- DEPARTMENT BLUE' - �AVOR . File NO. � `. � � �� Council Resolution �� Presented By Referred To Committee: Date Out of Committee By Date Page 3. Cable Communications Board are ma.de expressly at Nor-West' s own risk until the aforementioned approvals are obtained. Motion to werride veta of the �avor fail�� of adoption on 7/2�/�3 Yeas 3 - �Masanz, Nic�si�., Galles) *1ay$ 4. _ (Scheibel, Wil�on, Fletaher, meriesao) COUNCILMEN Requested by Department of: Yeas Nays Fletcher� ^�a0� In Favor �Masanz �icosia Scheibe{—+ � __ Against BY �edesco Wilson�� Adopted by Council: Date JUl 5 ��03 Form Approved by City Attorney Certified s e Counc' re By'�--�—r�• 4��„ � L �'"'!''�� c..�c.t• gy, �r pproved by Mayor_for Submission to Council By BY � �►. � .�2�c�s75 ., , . , . � , ��`�1T��.� ' �CIT`Y OF SAINT PAUL o � M OFFICE OF THE MAYOR '' {i�i i�n � < ro Ao -=ti., �� 347 CITY HALL SAINT PAUL, MINNESOTA 55102 GEORGE LATIMER (612) 298-4323 MAYOR FILED July 13, 1983 �� 3 � 19 �� $3 C!7��,�p��,�L, 1�,a�N.�C� T0: MEMBERS OF THE CITY COUNCIL • .._.,_ FR: MAYOR GEORGE LATIMER \ RE: CABLE FRANCHISE Today, I have made the decision to veto the July 5, 1983, City Council Resolution awarding the cable franchise to Nor-West Cable Communications. St. Paul is a first class city and we deserve the best possible cable franchise. The decision to select Nor-West has, in my mind, been arbitrary and it ignores the City's own wording in the request for cable proposals . . . "The City will award the franchise to_the applicant who demonstrates the best overall capability and willingness to provide cable communication services to the City of St. Paul . " Nor-West does not provide an equal level of public benefits in comparison to the other two companies. Specifically, after reviewing the consultant's study and meeting with City Council members, staff and cable companies ' representatives, I am vetoing the Resolution for the following reasons. In each instance, the cable franchise review process failed to openly and adequately address these issues: 1 . While some participants in the Nor-West venture have cable experience, they have little actual experience working together as a team. The lines of decision-making and relationships are not clear. The owners (the final decision-makers) have no cable experience. More importantly, the departure of Mark Van Loucks is a serious change in the proposal developed by Nor-West and should not be considered lightly. The fact of the matter is that Mr. Van Loucks was the lead individual for the Nor-West proposal . No matter what the reasons for his departure several weeks ago, the Nor-West venture arrangement is further clouded and, in and of itself, provides sufficient reason for a veto. Both Group W and Continental are well established in the cable industry. They have a proven track record in designing, building and operating cable systems. �m ��o J�`�s � � � � - 2 - ' • � r 2. Although meeting minimum requirements, Nor-West provided minimal information and plans on employment, training, and affirmative action. No specific funds were set aside to implement EEO and affirmative action plans. While Nor-West made its intention clear, there is little to go on in assuring that this priority for the City of Saint Paul will be met. Both Continental and Group W provided detailed plans for the employment and training of women and minorities involved with the cable system. Both companies established training funds as well as revolving minority business loan funds. 3. Although Nor-West provides the lowest rates during the construction phase over a three-year period, there is no guarantee of rate stability. The other two companies have provided rate guarantees, however, Nor-West linked its rate freeze to the prevailing rate of inflation. Further, there is question as to whether the Nor-West rates will be competitive after year three of the franchise, given Nor-West's estimated increases in its financial pro forma, in comparison to the other two companies. 4. Nor-West is the weakest company in providing municipal services. Nor-West accomplished only a minimal needs assessment. Funds were allocated to support municipal projects but no projects were identified. In the original request for proposals, the City stated that resources for the City should be separate from community resources. Nor-West did not comply with this request and proposed that the City share facilities with the community. The City's staff task force had little confidence that the Nor-West proposal would satisfy the potential for municipal services applications. Continental and Group W devoted considerable attention to this area. Extensive needs assess- ments were conducted and detailed plans and budgets were included for implementation. 5. Nor-West's proposal for institutional network services was vague and based on a minimum needs assessment. Nor-West offered only a very general plan. The other two applicants suggested specific pilot projects and conducted extensive needs assessments studies in the community. Nor-West stated only the amounts budgeted with suggestions as to how the funds could be used. Again, the Nor- West proposal was vague and does not provide sufficient detail for the City to make maximum use of institutional network services. Nor-West offered the most limited dedicated institutional network. Plans for the network were largely incomplete. 6. Nor-West's proposal exceeded the City's requirement for channel capacity, but provided only minimal ongoing funding and the most limited equipment package for community and institutional access. Nor�West's overall commitment to access is substantially less than the other two applicants. Both Continental and Group W.proposed comprehensive and complete plans for accommodating community and institutional access based on very thorough needs assessments. In both cases, the companies proposed equipment, channels, and funding beyond the City's minimum requirements. Plans for training Saint Paul citizens have been included and both of these two companies have complied with the City's request that separate resources be allocated to the two non-profit access corporations. Nor-West's proposal is insufficient and skeletal . Although Nor-West provided information and proposals in all of the above areas, its overall proposal is considerably less well developed. This is unacceptable. The City deserves a franchise which has sufficient detail for us to measure the . ��7s � t • • • ' • - 3 - effectiveness of the cable operation and to realistically implement a cable system which is in the best interest of Saint Paul citizens. The Nor-West proposal , for whatever reasons, is simply too thin and too vague. Cable television is more than providing home entertainment. The Continental and Group W proposals do offer more to the citizens of Saint Paul and do provide more detail and more substance than the Nor-West proposal . By this veto, I am strongly recommending to the City Council to select one of the two remaining companies. Both Continental and Group W have strong bids and are capable of providing first-rate cable services. . , . �X��'7_� . . , � . ��°�°�4Y� < CITY OF SAINT PAUL ,__�ti�._= o.�,, `�' '-`''= OFFICE OF THE CITY CLERK �� :o a; %� �i ii ii �' :,,,+� ,.�� ALBERT B. OLSON, CITY CLERK ��, - a��„imn!�o�s°� 386 City Hall,Saint Paul,Minnesota 55102 612-296-4231 GEORGE LATIMER MAYOR lZ�.��l iP�.� JUL 6 ^ 1983 July 6, 1983 F�r�;-��:aii� OFi�� Honorable George Latimer Mayor ' Room 347, City Hall Dear Sir: I herewith submit for your approval the following Council Files which were adopted at the July 5, 1983 City Council meeting. �� C.F. 280479 �~ � �( (�` �� s V � C.F. 280560 thr 280575 � � � � Very truly yours, �zL�';� � C!��' ��c�1� � � �, . Albert B. 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