278067 WMITE - CITY CLERK ^�,^��
PiNK - FINANCE •)r1U
CANARY - DEPARTMENT COUIICII �_ s
swe ► - MAYOR G I T Y O F S A I N T PA IT L File N O. ���p � �
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Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
3.
"Shall the City of Saint Paul be authorized to acquire a cable
communications system at no financial risk to the City 1�y awarding
a cable franchise to a non-profit corporation, with title to the
system transferring to the City of Saint Paul upon final payment
of the bonds issued to construct the system?"
COUIVC[LMEN Requestgd by Department of:
Yeas Nays
Hunt
�w»r� � In Favor
nn�.+�—
McMahon B
Showalter -�--- Against Y —
Tedesco
Wilson
Adopted by Council: Date JAN 2 1 1982 Form Approved by City Attomey
Certifit:d a•s by C unc� S cr BY
By
Approved y avor: Date „N 2 � Approved by Mayor for Submission to Council
By O — BY
I
WHITE - CITY CLERK w/
CANARY �- DEPARTMENT COU[IC1I � 6 � ����
s�ue ,s MAYOR G I T Y O F S A I N T PA U L File N O.
� - C ncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS, The Council of the City of Saint Paul ha.s studied
the award of a cable communications franchise within the City
limits; and
WHEREAS, Specifications for a cable communications system
were developed for the Council by Cable Television Informa.tion
Center in a document entitled "Invitation for Applications", dated
May 27, 1980; and
WHEREAS, Proposals were solicited from private cable communi-
cations companies for the franchise; and
WHEREAS, After extensive deliberations, the Council voted to
reject all of the proposals from private cable communications
companies; and
WHEREAS, Staff was instructed to explore alternative approaches
to the award of a cable communications franchise ma.ximizing the
involvement of the City in the enterprise; and
WHEREAS, Special tax counsel has advised that interest on
revenue bonds issued for the acquisition and construction of a
cable communications system, as herein structured, would be ex-
empt from income taxation under existing Federal regulations and
rulings:
1. A non-profit corporation would be incorporated
under Chapter 317 of Minnesota Statutes.
COUNCILIVIEN Requested by Department of:
Yeas Nays
Hunt
Levine In Favo[
Maddox
McMahon B
snoweiter - __ Against Y
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Date —
Certified Passed by Co�ncil Secretary BY `��— �+' ���-CC./G
Bl' --
Approved by ;Vlavor: Date _ Approved by Mayor for Submission to Counci�
By _ _ By
� j + ���..��,F�
2.
2. The by-laws of said corporation would provide that
members of the Board of Directors of the corpora-
tion would be appointed by the Mayor with the
approval of the Council.
3. Any excess revenues generated by the cable communi-
cations system would be paid to the treasury of the
City of Saint Paul.
4. Upon discharge of the revenue bonds issued to fi-
nance construction, title to the cable communica-
tions system would vest with the City of Saint Paul.
and
WHEREAS, bond counsel has further advised that the bonds
issued for the acquisition and construction of the cable communi-
cations system would be "Conduit" revenue bonds and that the f i-
nancial risk for such financing would accordingly be borne totally
by the non-profit corporation and the bondholders; and
WHEREAS, Because the City of Saint Paul will be acquiring the
system automatically upon discharge of the outstanding bonds, ;
prior approval by a majority of the electors voting is required
under Section 15.01 of the City Charter; and
WHEREAS, It is in the best interests of the citizens of the
City of Saint Paul to proceed expeditiously considering the added
costs for construction resulting from inflation; now, therefore ,
� be it
RESOLVED, By the Council of the City of Saint Paul, that the �
City shall acquire a cable communications system as aforedescribed
with technical capability not less than the minimum standards set
in the IFA dated May 27, 1980; and, be it
FURTHER RESOLVED, That the Council hereby directs the City
Clerk, pursuant to Section 15.01 of the City Charter, to place
the following proposition on the ballot at the next general
election which is April 27, 1982: