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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 � � . 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: