HomeMy WebLinkAbout1975/08/11 - ADMIN - Minutes - City Council - RegularMINUTES
SPECIAL CITY COUNCIL MEETING
August 11, 1975
The special me-eting of the St. Louis Park City Council to discuss the request
of ferry Polinsky to transfer that portion of the City's CATV franchise held
by Warner Cable Company, New York, to him was called to order by Mayor Fleetham
at 9:58 p: m
The following Councilmen were present:
Richard Graves
Lyle Hanks
Seymour Druskin
Leonard Thiel
Rose -Mary Griak
Mayor Fleetham
Also present were the Acting City Manager and Acting Secretary.
Announcements - Mayor- Fleetham announced that the Suburban Public Health Nursing
Service is holding a meeting at 11:30 a.m. on Thursday, August 14, 1975in
the
Community Room in the Minnetonka City Hall to discuss their budgetary Fleetham
or
1976 He encouraged as many Councilmen to attend as possible.
to the Board of
also announced r_hat Councilman Lyle Hanks has been appointed
Directors of the Association of Metropolitan Municipalities.
Bequest to Transfer CATV Franchise - Jerry
Polinsky explained that he has both
attempted to et. the Warner Company to fulfill the terms of the franchise and also
P g s franchise. He noted that he
to get someone to assume its interest in the City an because of
and the City would have. a strong legal case against Warner Come y
it would be his and the City's obligation
their default on the franchise; however, his attorney that it may
to prove damages, He. stated that he has Therefores heen advised bis requesting that the
be difficult to prove monetary damages. the Warner Company
City Council rransf a ..- that portion of the CATV theenCityeo eb
St,Louis Park sign a
(657) to him on the condition that both he and
an
release of Wainer Cable Mr.
Polinsky noted that he has hiredTelcomtof St.tLouisk
with the Federal Communications Commission and intendss� will be operational
Missouri as his technical consultant.
He hopes the system
whereby CATV
next June. He then explained the features of Home Box office,whereby
approximately
subscribers can urcha4 an additional channel which will provide
other special
P concerts, sports events,
70 hours per week of first run movies,
features stated that the 5%
ThoMro Polinsky
In response to partners in the
P questions from CosoHome Box Office subscription
gross subscriber revenues would al in
revenues, stated that he does not intend to have any
He further
235
INk
franchise and will be doing all of the financing himself. Mr. Polinsky stated
that he does not feel that a $300,000 construction bondial is losses, as if he
does nct perform adequately, he will suffer
In response to questions from Councilman Griak, Jerry Polinsky stated that in
marketing CATV serice he intends to emphasize the availability of stations
e*
from Chicago and Winnepeg and the Home Box office service,
Mrs Polinsky stated, in response to questions from Councilman Hanks, that he
hopes to get the franchises and construct CATV systems in many of the neighboring
suburbs; however, at the present time, he could not individually handle franchises
for Minneapolis and St: Paul He noted that a $7.95 subscription rate is required
to make the system viable and that he intends to use a shadow cable, set-top
converter rather than a dual cable system. Mayor Fleetham noted that according
to the franchise, the Council must approve all fees and rates, including the
Home Box Office additional fee.
Mr. Polinsky stated that i.f the franchise transfer can be effectuated in August,
he anticipates beginning construction in December or January, with approximately
three-quarters of the system being operational by June, 1976. He stated that
he does not at the present time intend to give the initial hook-ups free but
anticipates offering them at a reduced rate.
At the request of Councilman Thiel, Mr. Polinsky agreed to provide the Council
with a copy of his personal financial statement as well as information showing
the capitalization on the new corporation.
In reviewing the points to be negotiated listed in Resolution No. 5158, Mr. Polinsky
stated that a $7-95 subscription rate would be required; that he intends to
provide at the present time a mobile van with black and white capabilities; and
that he agrees to the existing franchise terms relative to the City's right to
purchase. He noted that Points No. 4 and 5 do not pertain to his request. He
agreed to provide live remote capability from at least three locations to be
designated by the Council; to log correspondence; and to assist the City in obtainitg
approval of a 5% franchise tax with the FCC. He stated that he does not feel that
any type of performance or surety bond is necessary, Councilman Thiel requested
that the City Attorney provide the Council with an opinion relative to the need
for a bond -
It was moved by Councilman Thiel, seconded by Councilman Graves, that subject
to (1) Mr Polinsky's supplying the Council with financial information;
(2) the recommendations of the City Attorney relative to the required bond and
requested techni^al changes and (3) a formal agreement between the City and
Mr. Poliasky's attorney, that the Council express its intent to transfer the
franchise.
Mr. Polinsky noted that if he has not made any substantial progress in constructi
this system by February 1, 1976 the City can take over the entire franchise*
Following further dls;_u951on the motion was Withdrawn.
Mr. Polinsky noted that he is requesting the same technical changes as those
requested by Cable Media.
236
���tt Was T-egUe& c -ed t o
es requeEted
by August 18:
�cte�t ;
Susan Workman,
cosnsult with Mr,, Polinsky's attorney relative to all of
and report to the Council on the status of the transfer
19750
Acting Secretary
237
L -