276842 WHITE - CITY CLERK s�-! "1
PINK �� FINANCE COUI1C11 �b84.
CBLYPARY - DE�PAORRTMENT . G I T Y O F S A I N T PA U L File N O.
♦ " �
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS, The City Council of the City of Saint Paul, hereto—
fore adopted a resolution rejecting all applications for the cable
communications franchise within the corporate limits of the City
of Saint Paul filed with the City Clerk on August 1, 1980; and
WHEREAS, Such action was taken by the City Council only after
extensive deliberations and after determining that the public
interests would be best served by placing a cable communications
system for the City of Saint Paul under a form of public ownership
and control not contemplated in the applications for the cable
communications franchise; and �
WHEREAS, It is appropriate that the City Council make find-
ings and authorize actions for the purpose of facilitating public
ownership and control of such a cable communications system by a
non-profit corporation; now, therefore, be it \
RESOLVED, By the Council of the City of Saint Paul, that it
is hereby found, determined and declared as follows:
1. A cable communications system for the City of Saint Paul
is a public convenience which should be made readily accessible
to all of the citizens of the City of Saint Paul at the lowest
basic subscriber rate economically feasible and consistent with
all other public and other charitable purposes to be served by
the system.
COUIVCILMEN Requestgd by Department of:
Yeas Nays
Hunt
Levine In Favor
Maddox
McMahon
s�,o,,,,ei�e� __ Against BY
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY �\�
By
Approved by :Nayor: Date _ Approved by Mayor for Submission to Council
By - — BY
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2 .
2. The system serves the interests of the community as a
whole through the transmission of cable communications program-
ming and both private and public access channels which serve the
varying needs and desires of the City government, educational,
cultural and religious institutions, business and individual
citizens of the City.
3. The system should be placed under public ownership and
control, or its equivalent, so that the system will (a) attract
the maximuAn number of subscribers to the system economically
obtainable, (b) make available and facilitate production for
access channels, (c) take advantage of rapidly changing technology
.�and (d) assure that all revenues derived from the system are
,:�� applied towards the operation and expansion of the system and its
usage and the promotion of purposes that lessen the burdens of
government, thereby serving the public welfare of the City of
Saint Paul as a whole.
4. The development and expansion of cable communications
systems through the private sector within the United States has
created inevitable monopolies for the ownership and operation of
the systems by private, for-profit companies in designated
service areas and according there is a nationwide need for a city
of the size of the City of Saint Paul to develop a model for public
ownership and control of cable communications systems through non-
profit ownership.
5. The State of Minnesota through its legislature has
directed that the State Cable Communications Board encourage
experimental, innovative approaches to the building and operation
of cable communications systems and the establishment of non-
profit corporatior�sto facilitate production for the access
channels, as provided in Minnesota Statutes, Section 238.05,
Subdivisions 14 and 15.
6. Public ownership of the cable communications system for
the City of Saint Paul is necessary in order to assure that the
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3.
public interests will be fully served by such a system whether or
not the City of Saint Paul has or retains adequate authority to
control rates and condition the granting of a franchise for such
a system on fulfilling other public purpose objectives.
7. The City of Saint Paul has adequate authority to acquire
and operate the cable communications system for the City as a
public utility, and such activity is a lawful and legitimate
function of government.
8. Ownership and operation of the cable communications
system by the City in addition to all its other responsibilities
and costs would, however, at this time place an undue burden upon
the government of the City of Saint Paul. Accordingly, this
function would be better fulfilled through public ownership and
control of the system by a non-profit corporation charged with
the responsibility of lessening such a burden of government.
9. A preliminary feasibility study has been prepared by
Laventhol and Horwath indicating that public ownership and oper-
ation of the cable communications system through a non-profit
corporation is financially feasible with the issuance of tax exempt
bonds by the Port Authority of the City of Saint Paul (the "Port
Authority") to provide financing for such system, all without
pledging any of the financial resources of either the City of the
Port Authority to the payment of such bonds.
10. A major commitment of resources and staff capability of
the City and the Port Authority is required in order to provide
for public ownership and control of the cable communications
system for the City as contemplated herein, and be it
FURTHER RESOLVED, That a task force of representatives of
the City and the Port Authority be immediately formed for the
purpose of detailing and assisting the City and Port Authority
in taking the specific steps necessary to provide for such public
ownership and control including but not limited to the following:
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4.
l. Propose a timetable for all required actions.
2. Establishment of the process for selecting the
non-profit corporation which will own and control the
cable communications system.
3. Develop the criteria for the structure, includ-
ing representation from the City government, and charter
purposes of the non-profit corporation and for the dis-
position of any revenues derived from and in excess of
that needed for the system.
4. Set forth in a request for proposals or other-
wise the additional conditions for the grant of the
franchise.
5. Propose any changes to the Needs Assessment
Report and to existing legislation deemed desirable for
implementing the program.
6. Implement the proceedings for conducting the
Chapter 474 hearing on the project and securing approval
of the project from the Commissioner of Securities.
7. Develop with Miller & Schroeder Municipals, Inc. ,
and Laventhol and Horwath the structure and conditions
for tax exempt financing of the system.
8. Consult with the State Cable Communications
Board and take such actions as are necessary to secure
confirmation of the grant of franchise to the non-profit
corporation.
9. Retain such outside consultants as are deemed
appropriate to assist in the preparation of the request
for proposals and such other matters as are deemed
appropriate for purposes of implementing the program;
and be it
WHITE - CITY CLERK �F��[� j j'�
PINK -- RINANCE r J� i�
CANARY - DEPARTMENT COUIICII �v `,� N
BI.U6� - MAYOR - G I T Y O F S A I N T PA U L File N O. �
s � . ,
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
5.
FINALLY RESOLVED, That the Port Authority is hereby requested
to conduct a hearing on the financing of the project and secure
approval thereof by the Commissioner of Securities pursuant to
Minnesota Statutes, Chapter 474, at the earliest possible time,
and for such purpose the City shall sponsor the project as the
applicant until such time as a non-profit corporation is selected
to undertake the project.
COUNCILMEN Requestgd by Department of:
Yeas Nays
Hunt
Levine In Favor
Maddox
McMahon � A gainst By
Showalter —
�e--
Wilson
MAY 14 1981 Form Approved by City Attorney
Adopted by Council: Date
Certified •ssed by Counc� , cret� BY
.
Appr v by :Vlayor: Dat Approved by Mayor for Submission to Council
BY - BY
UBLISHED MAY 2 3 �gg�