04/08/1974 - 00015950� �,
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THE P4INUTES OF THE PUBLIC HEARING MEETING OF THE FRIDLEY CITY COUNCIL OF APRIL 8, 1974
The Publ�c Heartng Meeting of the Frid7ey City Council of April 8, 1974 was called to order
at 7:40 P.M. by Mayor Liebl.
PLE�GE OF ALLEGIANCE:
Mayor LIeb7 led the Council and the audience in saying the Pledge of I�llegiance to the Fla9.
� INVaCATION:
rlayor Liebl offered the Invocation.
ROLL CALL:
MEMBERS PRESENT
MEMBERS ABSENT
ADOPTION OF AGENDA.
Counci7man Utter, Counci7man Nee, Counci7man Breider,
Councilman Starwalt, and Mayor Liebl.
None.
Mayor Liebl said there would be an addition of a letter from the City Manager, Mr. Nasim
Qureshi, regarding the Anoka County Nature Interpretation program to the agenda.
MOTION by Councilman Breider to adopt the agenda with the addition of the communication
from the City Manager concerning the nature interpretation program of Anoka County.
Seconded by Councilman Utter. Upon a voice vote, all voting aye, Mayor Liebl declared
the motion carried unanimous1y.
idEW BUSIfJESS:
�CONSIDERATI
C I'�M� llNICATI
DATED APRIL
LETTER FROM THE FE�ERAL
Mayor Lie61 called on Mr. Bob Hinckley, Assistant to the President, General Television
Company. He offered a copy of the projected revenues for a ten year period to the
Council. Councilman Nee said the Council had been furnished with a copy of the pro,7ected
revenues in their agenda.
Mr. 'Ninckley said the F. C. C. had asked the Company to prepare the projected revenues
list io them for their review, and had independently asked the City for a list of their
projected expenses for the same period of time, He said the two lists had been compared,
He said it was unbeknownst to him that the City had been requested to submit the�r expenses
to the Commission. He further explained when the budgeted amount from the City of
$3,5D0 was submitted for the first year, the F, C. C, Commission projected this amount
over the ten year period. He explained on the other hand, the figures submitted by the
Company were escalated over the ten year period.
Mr. Hinckley continued saying he did not know what type of working procedure the Commission
has, but, it has taken four �o five months for a response. He believed the current action
to be a very ridged interpretation of the 1973 ru7es.
Mayor Liebl asked Mr.Htnckley if the General Television Company is living up to all of
the obligations it had made to the City. He continued to ask if the system was workable
at this time.
�Mr. Hinclkey answered, the system is completed and wnrkable at this time. He said from the
construciion standpoint, the Company is ready to operate. He continued there is the need
for some additional tesiing of the system which would probably take from 60 to 90 days. He
explained they would like to complete the extensive testing before the final payment is made
to the contractor. He stated the bui7ding is complete and equiped with two color studios and
cameras. He stated he believed the Company has lived up to their obl�gation.
Mayor Lie61 asked the amount of the tnvestment in the system by General Television. Mr.
Hinclkey responded this is 1.5 million dollars.
Mayor Liebl asked what Mr. HincKley interpreted the communication from the F. C, C. to
mean. Mayor Lie61 said he felt the F. C. C. would enforce what they had said and would
hold firm on the 3%. He said he thought of the Frtdley Cable Television should he
participating in the discussions.
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PUBLIC HEARING MEETING OF APRIL £i, 1974 PAGE 2
Mr. Hinckley repeated h�s thoughts that the F. C. C, is following a ridged set of ru]es.
He said there had been a ruling thai no money from the locai television franchise could
be used for general City revenue. He said this money had to be put to use by the local
regulatory body for Cable Television, He stated he felt their decision was based on their
comparison of the figures submitted by the Company and the City which compared the expenses
and the projected revenues. He continued saying if the expense needs of the City and the
Company's pro�ections were clarified, this would clear up the misunderstanding with the ,
f�gures used.
Mayor Liebl recalled the F. C, C, had stated the use of the 5% plus the $25,000 lump
sum payment was declared inconsistant with the rules of the F, C. C.
Mr. Hinckley said the combination of the two was ruled inconsistant, but if the two
were figured together within the 5%, this would be acceptable, f+9r. Hinckley said he
knew of other cases where lump sum payments had been determined feasib]e. He suggested
the expenses and pro�ections from the Company be figured again with raising the City
expenses to a reasonable amount.
Mayor L7eb1 asked if there was any other questions from the Council.
Councilman Starwalt asked Mr. Hinckley if he believed the 5% to be unreasonable. Mr.
Hinckley said he did not believe the 5% would be detrimentai to the community. He continued
to explain, this would be used by the citizen's committee and would be a progressive and
good step for the community and the Company. He stressed this would be a good use for
the extra money and wou]d be good for the peop7e and good for the community.
Mayor Ltebl read portions of the letter submitted to the F. C. C. which dealt with the
primary concern of the City at that time, determining if there were any problems in the
ordinance which would delay certification of General Television. He said the Administration
had worked up another budget for the Commission and read the various figures from the
new budget. Mayor Lieb] sard he felt the new budget would be relatively close to the
actual expenses for the Commission during fu71 operation of the system. ,
The City Manager said the figures had been determined by the Administration and the
total yearly expenses would tota7 approximately $78,750. The City Manager felt this
to be a fair amount.
P+1r. Hinckley said he would like to bring the Council up to date with the installation
of Cable Television withir the Metro area. He explained that Geraeral Television had come
to Fridley, and at that time, there were other communities that were being considered for
similar installations. He pointed out that St. Louis Park and Bloomington had also been
selected by o�her companies for installation of Cable Television. He safd at the present
time, Fridley is the only community in the �mmediate metro area with a system operational.
He said there are some small systems Dakota County, but this Fridley operation is the only
one with a physical plant completed and ready to turn on, and also, the only one with a
studto, He said in the other communities, they have.not made much progress and he was not
aware of any other community with plans of delivering service.
Mayor Liebl said he 7s interested in getting the communication system on the line. He
said the Council would have to be responsible to the people and also to ��the investors.
Mayor L�ebl suggested making an appearance before the F. C. C, ta state the facts and
clear up any misunderstanding that may have arisen. He said they had tried to gain
approval w�th written communications and had not made much progress. He suggested a
delegation from the Council along with someone from the Cable Television Commission and
also a representative of the Company appear in Washington, D. C., before the F. C. C.
Mayor Liebl suggested gaining the support of the various legislators from the Minnesota ,
area in this appearance before the F. C. C.
Mr. Hinckley said he would certainly go along with this recommendation of Mayor Liebl's
to send a delegat�on to Washington. He said this is the only way the matter cou7d be
brought to ,ome conclusion. He thought it would be an aid if the congressional members
were contacted also.
Councilman Nee noted that in the summary there were other certifications referred to by
the F. C. C. He asked if Mr. Hinckley hed a copy of those ordinances or knew of their
contents at the present time.
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PUBLIC HEARING MEETING OF APRIL 8, 1974
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Mr. Hinckley said he had referred to the certiftcations of the examples previously in the
meeting. He recalled one had been granted in 1966 and this was at the rate of 3%. He
said there was another application for certification two to three years later which
asked for 5%. He said the F. C. C. said this was higher, but it was thought that the
amount would 6e �ustified, He said the F. C. C, had ruled against the 5%.
Councilman Nee asked if this had set any criteria.
Mr. Hinckley said the revenues were to be used for the r;egulatory program and expenses
of the regulatory body only,
Councilman Nee said
Company should _take
the F. C, C.
the entire City is covered with the trunk service and the City and
photographs and maps for presentation at the appearance before
Councilman Nee said he thought the estimate of the expenses seemed very low. He said
it did not provide for any real leadership in the program. He said it wou1d seem
tl�ey would need another $40,000 per year for a complete program. He added, this is
such a modest 6udget, there would 6e no trou6le in it being approved.
Mr. Dean Galdwell, Cab7e Televiston Commission, said the Commission had originally
su6mitted a larger budget than the Counci7 had approved.
The City Manager said the original amount submitted by the Commission was $5,000,
but, there was only the amount of $3,500 from the Company, so this had been changed to
meet the incoming revenue. He explained the expenses could not be taken from the general
fund because the people had been told they would not have to pay for the Cable system
with tax dollars.
Mr. Caldwell said this amount was on7y for,the year 1974, but the F. C. C, had interpreted
this amount to be for the next ten Years with no increase in the future.
Mr. Caldwel7 satd their projection of expenses had been very modest also. Mrs. Barbara
Hughes, Cable Television Commission, addressed the Council and said there had been no
inclusion of money in the budget to handle complaints on the ordinance and she believed
this to be a ma�or part of the expenses. She said there had been no indication if these
complaints would be handled by the Senior Engineering Aic� or if this would be taken
care of by the City Manager's Office.
Mr. Bob McDonnell, Executive Director of the State Cable Television Commission, addressed
the Council and said the purpose of the State Commission is to promote Cable Television
as a media in the State. He said they are very interested in the happenings of the
various communities as they relate to Cable Television. He said he had enjoyed the
informative review of the Fridley system and offered the aid of the Commission in any
manner possible.
Councilman Breider thanked Mr. McDonnell for attending the meeting. He said the current
problems that Fridley is facing may be found anywhere in the Staie. He said the F. C. C.
must realize there is an expense in the regulatory activities of the community. He said
the City had determined the expenses would be 5%, not the suggested 3% which is set down
in the rules. He questioned Mr. McDonnell on his opinion of the State taking the position
to support the City in the�r claim that the 5/ would be more in line. He questioned Mr.
McDonnell on whether or not this would be within the role of the Commission and whether
or not the Commission would take the position in support of the Ci�y that the 5% is
justifiable.
Mr. Mc�onne7l said it all goes back to money. He continued stating the funding of the
Comnission is ]imiied and the initial duties of the Commission are io support and promote
the development of Cable Television in the State. He said it would 6e possible for the
Commission to help in someway. He said eaclTOf the members of the Commission had been
approved by the Governor of the State, and a�l of the action of the Commission is taken
as a body. He suggested the City of Fridley have a representative appear before the
Commission with some date or the same date that had been presented ai the current
meeting. He said the City and State Commission should work in concert on this matter.
He stressed, with a little concerted effort, a rock can be turned. Ne said the next
meeting of the State Commission would be on May 4th, and it would be possible for this
matter to appear on the agenda.
Mr. McDonell said he would be in Washington D, C, the following week attending a conference
of State Cable Agencies, and there are ten at the present time. He sa9d he had hoped to
talk with Chairman W�ylie and also Acting Chief�Kinley, and he would be able to do
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PUBLIC HEARING MEETING OF APRIL 8, 1974
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so��iething in these meetings. He again stressed the need for the City and 5tate to work
together. P9r. McDon�ll introduced the members of his staff that were present at �he
meeting, Anita Benda, and 5teve Shaye.
Mr. McDone71 stated the General Te7evision system is a beautiful operation. He questioned
the reason the firm had not sought certification from the Staie. He explained this is a
necessary step in the certification of the Company. He said the 5tate Commission had '
not received an application from General Television for such a certification. He said
the firm should make application for this certification and they could all work together
stating the State Certification Application would be forthcoming and was in its due
process.
Mr. McDonell said he had been in business for a good many years before 6ecoming associated
with the State Commission and he thought the City had presented a good case. He said he
would lend his support and do what he could as an individual citizen of the State of
Minnesota. He said with the help of the State Commission, they could get things going.
Counctlman Breider questioned Mr. Hinckley on why th�re had been no State application
submitted. Mr. Hinck]ey said this was in process, and they had until the end�of the month.
Councilman Nee asked Mr. McDonell if he had some back and forth dialogue with the F. C. C.
Mr. McDonell said the business of the State Commission had not been such thai it required
any communication with the F, C. C. He continued, they had been concentrating their
work on orientation of their members. He said the Commission had not had any specific
business to this point. He stated, he thought the Commission knew their way around,
but had no specific business before now.
Mayor Liebl asked the other members of the Commission who were present, {Mrs, Barbara
Hughes, Mr. Dean Caldwel7, and Mr. 7om Myhra) if a member of the Commission Would be
able to make the trip to Washington, D. C., after Easter. He suggested the best t9me
for this trip would be during the time that Mr. McDonell is in Washington. He said he
would like to see the representatives of the City to be accompanied by a member of the '
Cab1e Television Commtssion.
Mr. Dean Caldwell said he would recommend that Father Ed attend this meeting, but he
would go if Father Ed is unable to do so.
Mayor Liebl indicated the City would pay the expenses for such a trip from the $25,000
franchise fee. �iayor Liebl said he thought it was time to send someone out there and
provide the F. C. C. with proof of a workable system.
Mrs. Hughes said in her opinion, Father Ed should attend the meetings. Mr. Caldwell
said he thought Father Ed would be the best suited representative for the City.
Mayor Liebl sa7d the Company and the City would have to come up with a detailed presentation
with pictures and maps of the City and site. He said It� would a7so want some pictures
of the cameras for proof of the type of completness of the system. He said the proposed
budget should be substantiated to project the growth of the City. He suggested the Company
and the City work together to obtain a workable expense and revenue projection with would
show the system operating at full capacity.
Mayor Liebl said he would like to have someone with managerial experience represent the
entire Cuunci7 and g9ve that representative the authority to speak for the Council.
Councilman Starwalt questioned if there should be some advance preparation to secure
the necessary appointments and time from those at the F, C. C. He asked how the audience would
be secured. �
Mayor Liebl said he would like to see the City representatives go to Washington at the
same time that Mr. McDonell planned to be there.
Mr. McDonw�ll said this week would Ue a very busy week for those at the F. C. C. He 7isted
the events scheduled for the week. He said he hoped to secure an audience with those at
the F. C. C. because he would have come all the way from Minnesota to talk to their�, He
suggested if there would be any arrangements made for an appointment with those at the
F. C. C., this would be more suitable for Thursday or Friday. He said he could attempt
to make arrangements for an apointment with Mr. David Kinley, Acting Chief of the
Cab7e Television Bureau.
Mayor Ltebl suggested Sanators Mondale and Humphrey be included in the meetings, and also
Mr. Blatn�k. He stressed time was of the essence,
PUBLIC HEARING MEETING APRIL 8, 1974
PAGE 5
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Mr. McDonell said he would arrive in Washington at noon on the 16th of April. He explained
although, he wou7d have a busy schedu7e, Fridley would come first and be his primary
concern. He said Thursday is an open day, and this matter cou7d be taken care of on this
day. He offered to contact the Senators offices.
Mr. Caldwe71 asked if the representatives that Would be traveling to Washington would
be meeting with the representatives of the State Commission before this time. Mr. Ca1�1we11
asked if the concurrance of the entire 5tate Commission would have to be o6tained before
obtaining their support.
Mr. McDonell indicated this concurrance could be received through telephone contact, He
added, he was sure the entire Commission would support Fridley's efforts and support
could 6e obtained after the fact,
MOTION by Councilman Starwalt that Councilman Nee and Councilman Breider be authorized
to travel to Washngton D. C. for the purpose of serving as representatives of the Fridley
City Council, a7ong with the representative of the Fridley Cable Telev�sion Commission
and representative of the Company, while making a presentation to the F. C. C., and
that the full expense for traveling lodging and incidentials be paid, and that this trip
should be on the 16th, 17th and 18th of April. Seconded by Councilman Utter.
Councilman Nee asked if a proper presentation could be put together so quickly. Mr.
Hinckley said this would be possib7e, and he would work with the City staff and they
could come up with the necessary photos and maps.
UPON A ROLL CALL VOTE, Mayor Liebl, Councilman Utter, Counciiman Nee, Councilman Breider,
and Councilman Starwalt voting aye, I�layor Liebl declared the motion carried unanimously.
The City Manager said the Administration would work w�th Mr. Hinckley and supply all
the necessary information, He said they would have to make a determination whether
the $25,�00 should be a part of the 3/ or 5%.
� Councilman Breider said he thought it would behoove the member representatives �o
explain the expenditures in a number of different ways. He said the Council should not
determine the amount of costs, this would be an Administrative task.
Councilman Nee asked if the �udget could be changed at this time to increase the
expenses. The City Manager said thts was a medium range budget and it could be increased.
He said with the current figures, it would show the need for the 5% easily. He said the
complaint management could be added. He said this would provide for a total budget for ten
years of $180,000. He said the budget presented by General Television is $160,000.
Councilman Nee stressed, it would be possible to indicate the present budget to be
completely fair and valid.
Father Ed, Chairman of the Cable Television Commission, entered the meeting and Mayor
Liebl explained the progress in the meeting to this point. He said one member of the
Fridley Cable Television Commission had been authorized to attend the meetings with
the people at the F. C. C. He asked if Father Ed would be free to attend the following
week, indicating the other members of the Commission had indicated they wou7d want him
to take the trip.
Father Ed said he would not be able to answer at the present time, he would have to
check his calendar. Mayor Lieb7 again stated the members of the Commission thought he
would be the best representative of the City. Mayor.Liebl also stated the Commission
�would have to get together and determine the best approach io ihe presentation.
Father Ed said the Commission would get together and determine this.
Councilman Utter said the C�ty representatives would have to know where to get in touch
with the State Commission when they arrive.
Mr, ricDonell said he had written down his information and would give it to Mr. Qureshi,
the City Manager.
REQUEST FOR INSTALLATION OF TOWER BY GENERAL TELE1lISION, i�IADE BY MR. 606 HINCKLEY:
Mr. Bob Hinckley addressed the Council and said General Television is in need of
constructing a tower to bring the distant signal from Milwaukee, He said he would
like to explain the reason for this request at this tin�e. He exp7ained two years
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PUBLIC HEARING MEETING OF APRIL 8, 1974
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ago, it was assumed there would be a microw�ve antennea which would bring the signals
to the IDS Tower. He said the Company that had this 19cense had abandoned this plan,
because Fridley was its only customer. He said there is a tower for the microwave trans-
mission in Arden Hills, but the receiving antennea at the Genaral Te7evision operation
ts only 30 feet off of the ground and because of the high bluffs on the east end of
Frid7ey, it is impossible to rece�ve the signa7. He said the request wou7d be for the
installation of a tower in Fridley that would act as a beam bender. He continued to ,
explain, the antennea in Arden Hills does bring the micro waves from Mi7waukee, but the
beam bender would be needed to transmit to the General Television location.
Mr. Hinckley said their proposal for the installation of the tower would be adjacent
to the City water tower at Central and I, 694. He said the tank is enclosed by a
high fence and has adequate space for this installation and would be we71 protected.
Ne said from the safety standpoint, there would be no live energized wire on the
tower, it would be ,7ust a beam bender. He explained the installation to be like two
dishes with one dish bending the beam to the other dish. He said the beams would be
bounced to their building south of C�ty Hall.
Mr, Hincf;Tey said he was not asking for an answer at the present time, he was asking for the
opportunity to work with the City staff on the matter,
MOTION by Councilman Breider to receive the request from Mr. Hinckley, of General
Television for the construction of a tower adjacent to the City Water Tank at Central
and I, 694, Seconded by Councilman Utter. Upon a voice vote, all voting aye, Mayor
Lieb7 declared the motion carried unanimously.
The City Manager exp]ained, the City is already working with Anoka County to try to
put someth7ng together and make it work.
Councilman Nee asked Mr. Hinckley if he could stay until after the meeting and talk to the
members of the Counci7 that would be accompanying him on the Washington irip. Mr. Hinckley
said he would remain. '
ESTIMATES:
A. J. Chromy Construction Company
5051 West 215th Street
Lakeville, Minnesota 55044 (Contractor)
And
Western Casuaity and Surety Company
Fort Scott
Kansas (Bonding Company)
Estimate No. 3 for Sanitary Sewer, Water
and Storm 5ewer Improvement No. 114
Carl Newquist, Prosecutor
Smith, Juster, Feikema, Haskvitz & Casserly
Builders Exchange Building
Minneapolis, Minnesota 55402
Services rendered as prosecutor for March, 1974
$ 700,345.74
$ 1,285.00
The City Manager said it had been the recommendation of the Bonding Company that the
Estimate be released to the Contractor and the Bonding Company, both, because the
Construction Company is not paying the subcontractors. He said he had experenced
problems on his previous �ob in another community. The City Manager said he would
like to add the stipulation that this money be released to the Bonding Company with
provisions that the Fr7dley job contractors be paid.
The City Attorney said this had 6een his recommendation and he concurred.
MOTION by Councilman Utter to approve the Estimates listed above with the stipu7ation
as recommended by the City Attorney and the City Manager, that the Estimate to Chromy
Construct9on Company be released both to ihe Company and the Bonding Company and that
the Fridley Subcontractors be paid, Seconded by Councilman Starwalt. Upon a voice
vote, all voting aye, Mayor Liebl declared the motion carried unanimously.
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PUBLIC HEARING MEETING OF APRIL 8, 1974 PAGE 7
CONSI�ERATIDN OF EXPLORING THE POSSIBILITY OF COOPERATION WITH ANOKA COUNTY REGARDING
E NATURE INTERPRETIUE ROG A:
Mayor Liebl read the letter from the City Manager to the Council dated April 8, 7974,
regarding the possibil�ty of cooperation with Anoka County regarding the nature
interpretive program.
' Councilman Utter said there would be a meeting of the County Commissioners the
following day at 9:00 A.M.
Mayor Liebl said it would be important for Fridley to have an input since the City
had contributed much of the tax dollars to the County. He suggested some he7p in
locating a naturalist in the City of Frid7ey. Mayor Liebl asked if there was anyone on
the Council who would volunteer to attend the meeting.
Councilman Utter said he would not be able to get away for the meeting.
MDTION by Councilman Nee to concur with the items of recommendation #7 and #2 on the
second page of the memo from the City Manager of April 8, 1974, and that the City
Manager attend the meeting of the County Comm7ssioners the following day to come up
with some kind of proposal and interaction between the County and �he Ciiy. 5econded
by Councilman Breider. Upon a voice vote, all voting aye, Mayor Liebl declared the
motion carried unanimously.
ESTION ON WHETHER OR NOT THE PR6POSED CATV BUDGET WOULD NEED FURTHER COUNCIL AC7ION:
Mr. Dean Caldwe7l addressed the Council and questioned if the new proposed budget if
altered by the Cable Television Commission would need any Council action before being
submitted to the F. C. C.
�Councilman Nee said the budget could be brought back for consideration the following
Monday evening. Mayor Liebl agreed.
The City Manager said he would work with the Company, Mr, Hinckley, the Commission
and bring the entire matter back for Council review the following Monday evening,
ADJOURNMENT:
MOTTON by Councilman Starwalt to adjourn the meeting. Seconded by Councilman Utter.
Upon a_voice vote, all voting aye, Mayor Lieb7 declared the motion carried unanimously
and the Public Hearing Meeting of the Fridley City Council of April 8, 1974 adjourned
at 9:12 P.M.
Respectfully submitted,
C�.�.::.., �,c4.
Patricia Ellis
Secretary to the City Council
�`�l?�� /9� f
Date Appro d
If' '�'C��
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Frank G, Liebl Ifayor
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