HomeMy WebLinkAboutMay 5, 1986OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
PUBLIC HEARINGS
MAY 5, 1986
The public hearing was called to order by Mayor Nawrocki at 8:00 p.m..
1. Roll Call
Paulson, Petkoff, Carlson, Peterson, Nawrocki - present
2. Public Hearing # 1 - Transfer of Ownership
a. Statement of Purpose
Mayor Nawrocki stated that the purpose of the first public hearing is to consider
and take public comment on the transfer of stock of Group W Cable, Inc. from
Westinghouse Broadcasting and Cable Inc. to the consortium of five buyers consisting
of Tele-Communications, Inc. (TCI), American Television and Communications Corporation
(ATC), Comcast Corporation (Comcast), Daniels and Associates, Inc. (Daniels), and
Century Southwest Cable Television, Inc. (Century). The buyers will be referred to
as the Consortium.
b. Introduction of Various Company Representatives and City Staff
The City Manager introduced Gary Matz, legal counsel to the City on cable matters,
Don Richards, financial analyst~ who will conduct an analysis of the financial
matters concerning the transfer of the cable franchise of the Cities of Hilltop
and Columbia Heights, Mark Matthews, General Manager for Group W Cable, Inc.? Tom
Sharrard, District Manager for Group W Cable, Inc., Ron Abram~, Group W Cable, Inc.
legal counsel, and James Erickson, legal counsel for North Central Cable Communications
and Daniels.
c. An Overview of the Transaction by Gary Matz
Matz advised the Council that a formal application for transfer of the franchise
has been received but stated that all of the required information for the Council
to take formal action on this requested transfer has not been received.
Mayor Nawrocki inquired who was responsible for the costs involved with this hearing
and the franchise transfer costs. Matz replied that typically these costs are paid
by either the buyer or seller and that the City has the authority to require these
fees be paid by them. Matz noted that a $7,500 application fee was requested but has
not been received at this point in time.
The City Manager noted that this hearing was intended to be a joint hearing with the
City of Hilltop. The City of Hilltop had been advised of the hearing by notice as
well as phone. The Mayor noted that this is the night of the regular council meeting
in Hilltop. The City Manager was aware of this but had been advised that someone
from Hilltop would be attending the hearing after the council meeting adjourned.
When the City awarded the franchise to Group W Cable it was required by state law
to consider and approve the legal, technical and financial qualifications of the
franchisee. Matz recommended that this same format and considerations be given to
this transfer.
Mayor Nawrocki inquired of the legal counsel what he had used as financial background
for the Consortium. When the Mayor was advised that an article in a trade publication
was used as part of the financial research he noted that the article referred to pur-
chase capital not operating capital.
Representatives of Group W Cable, Inc. and of the Consortium gave presentations re-
garding their position in the transfer. Mayor Nawrocki noted that the cable company
had not complied with the franchise and is negotiationg amendments in the franchise
ordinance to delete those items not complied with.
A former member of the Cable Communications Commission cautioned the Council to be
Pub~ ic Hearings
May 5, 1986
page 2
wary of changes to the franchise and questioned those from the consortium regarding
bringing the system into compliance. Legal counsel for Daniels stated that the fran-
chise is being accepted exactly as the ordinance is written. A resident noted that
the franchise buyer should accept the liabilities as well as the assets.
Discussion followed regarding policy to deny the transfer.
Matz recommended the hearing be closed as he felt there was not enough information
presented at this point in time for the Council to make a decision.
Motion by Petkoff, second by Paulson that the public hearing be closed and that the
City Manager and legal counsel for cable matters be directed to prepare the necessary
documents for the approval of the transfer. Roll call: All ayes
3. Public Hearing #2 - Transfer of Franchise
a. Statement of Purpose
Mayor Nawrocki stated that the purpose of the second hearing is to review and take
public comment upon the transfer of stock represented by Group W Cable of Columbia
Heights/Hilltop, Inc., from Group W Cable, Inc. to Daniels-Hauser Holdings and ul-
timately to North Central Cable Communications Company, L.P.. This transaction will
require a transfer of the franchise from Group W Cable of Columbia Heights/Hilltop
Inc., to North Central Cable Communications Company, L.P.. This hearing will address
the legal, technical and financial qualifications of Daniels-Hauser Holdings and
North Central.
b. An Overview of the Transaction
Matz reviewed the procedures necessary to complete the transfer of the franchise.
In his memo, dated April 22, 1986, Matz stated that much of the information necessary
for the Council to take an action had not been received. He again stated this to be
true.
Mayor Nawrocki requested that an agreement be drawn up stating that the costs for
these procedures will be paid by the buyer or seller. Denial of the request for
transfer were discussed as were options for operating a cable system in the City.
John See, Media Advisor for Columbia Heights schools, stated his concern regarding
educational access and its continuance. He regards access as a very effective tool
in education and community communication. See feels the potential for educational
access can be greatly expanded and hopes this type of programming will not be cut
back nor interrupted.
Councilmember Paulson, who represents the Council on the Cable Communications Com-
mission, inquired when the necessary documents can be expected. John Erickson ad-
vised the Council they should be completed before the end of the month.
Mayor Nawrocki requested that the forthcoming additional information be distributed
to the City Council and the Cable Commission and that the City Manager be prepared
to update the Council on this matter at each Council meeting.
Motion by Petkoff, second by Paulson to continue this hearing at the call of the Chair.
Roll call: All ayes
Adj ou rnmen t
these hearin § a 1~'~ 0 p.m..?' ol
Motion by Paulson, second by Peterson to adjourn.i~ ~7~//!~J~
call: All ayes ? ~l ~Ji~,/~/~
~'~f" t~r~,w'w~-~ 1~'~'~[' /-~'~ . .~__4~ MaWr Bruce G. Nawrock'
/~-Anne Student, CounciFX3ecretary