2016-03-15 Council Packet1. Call to Order
2. Roll Call
3. Pledge of Allegiance
4. Adopt Agenda
CITY OF MENDOTA HEIGHTS
CITY COUNCIL AGENDA
March 15, 2016 — 7:00 pm
Mendota Heights City Hall
5. Consent Agenda
a. Approval of March 3, 2016 City Council Minutes
b. Accept January 12, 2016 Parks & Recreation Commission Minutes
c. Accept 2015 Parks & Recreation Annual Report
d. Approve Resolution 2016-02, Accept Donation for AED
e. Approve Resolution 2016-21, Participation In All Hazard Mitigation Planning Process
f. Approve Resolution 2016-25, Authorize Grant Agreement with MN Department of
Public Safety
g. Approve Resolution 2016-23, Authorizing a Right of Entry Permit for City Owned
Property Granted to MnDOT
h. Approve Personnel Action Items
i. Acknowledge February 2016 Building Activity Report
j. Approve of Out of State Travel
k. Approve of Claims List
6. Public Comments
7. Presentations
a. Recognition of Jane Hulse, Distinguished Finalist for the Prudential Spirit
Community Award
8. Public Hearings
a. CenturyLink Cable Television Franchise Ordinance
1. Resolution 2016-23 CenturyLink Franchise Findings of Fact
2. Ordinance 493 Granting a Franchise Agreement to CenturyLink (majority vote)
and approving the summary publication (4/5 vote)
9. New and Unfinished Business
a. Approve 2016 Contract for Pilot Knob Management
b. Approval of License Agreement for the Rogers Lake Property Owners Association
to Utilize a Portion of Wagon Wheel Trail Right -of -Way (tabled from 3-3-2016)
c. Resolution 2016-22, Adopting Fees and Policies Relating to the Issuance of Tax -
Exempt Conduit Debt
d. Authorize Volunteer Fire Reserve Group
e. Establish Workshop Dates
10. Community Announcements
11. Council Comments
12. Adjourn
page 3
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Thursday, March 3, 2016
Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota
Heights, Minnesota was held at 7:00 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights,
Minnesota.
CALL TO ORDER
Mayor Krebsbach called the meeting to order at 7:00 p.m. The following members were present:
Councilmembers Duggan, Petschel, and Norton. Absent: Councilmember Povolny.
PLEDGE OF ALLEGIANCE
Council, the audience, and staff recited the Pledge of Allegiance.
AGENDA ADOPTION
Mayor Krebsbach presented the agenda for adoption. Councilmember Norton moved adoption of the
agenda.
Councilmember Petschel seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Povolny)
CONSENT CALENDAR
Mayor Krebsbach presented the consent calendar and explained the procedure for discussion and
approval. Councilmember Petschel moved approval of the consent calendar as presented and
authorization for execution of any necessary documents contained therein, pulling items a.) Approval of
February 16, 2016 Council Minutes; h.) Adopt Resolution 2016-12, Designation of Municipal State Aid
Streets; j.) Approve Purchase Order for Street Sweeping; k.) Adopt Resolution 2016-20, Call for Public
Hearing on MnDOT Highway 110 Rehabilitation Project and Request Local Government Approval; and
1.) Approval of Right -of -Way License Agreement for Rogers Lake Property Owners Association.
a. Approval of February 16, 2016 City Council Minutes
b. Approval of February 16, 2016 City Council Workshop Minutes
c. Approval of February 17, 2016 City Council Special Meeting Minutes
*Councilmember Duggan abstained on items a, b, and c
d. Acknowledgement of February 10, 2016 Airport Relations Commission Minutes
e. Acknowledgement of February 23, 2016 Planning Commission Minutes
f. Adopt Resolution 2016-17, Extend Sprint Nextel Cell Tower Lease
g. Adopt Resolution 2016-18, Acknowledging Sale of Surplus Equipment
page 4
h. Adopt Resolution 2016-12, Designation of Municipal State Aid Streets
i. Denial of a Street Light Installation at Victoria Road and Douglas Road
j. Approval of a Purchase Order for Spring Street Sweeping
k. Adopt Resolution 2016-20, Calling for a Public Hearing on the MnDOT Highway 110 Rehabilitation
Project and Request for Local Government Approval
1. Approval of a Right -of -Way License Agreement for the Rogers Lake Property Owners Association
to provide Landscaping Along Wagon Wheel Trail
m. Acknowledgement of January 2016 Fire Synopsis
n. Approval of January 2016 Treasurer's Report
o. Approval of Claims List
Councilmember Norton seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Povolny)
PULLED CONSENT AGENDA ITEM
A) APPROVAL OF FEBRUARY 16, 2016 CITY COUNCIL MINUTES
Councilmember Petschel noted a correction to be made to the February 16, 2016 City Council Minutes.
It was mistakenly reported that she has served for the last year and half on the Noise Oversight
Committee (NOC); it should have read that she has served for the last five years and chaired for the last
year and a half.
Councilmember Petschel moved to approve the February 16, 2016 City Council Minutes as amended.
Councilmember Norton seconded the motion.
Ayes: 3
Nays: 0
Absent: 1 (Povolny)
Abstain: 1 (Duggan)
H) ADOPT RESOLUTION 2016-12, DESIGNATION OF MUNICIPAL STATE AID STREETS
Public Works Director John Mazzitello explained that as part of Mendota Height's street network, the
City is allowed to designate a certain percentage of its streets as `municipal state aid streets' (MSA),
provided they meet certain criteria. Mendota Heights is allowed to designate up to 20% of its road
network as Municipal State Aid streets provided they meet this criteria. Staff has reviewed the mileage
for the coming year with the addition of Lemay Shores Avenue, which allowed staff to add Center Point
Curve to the MSA system (the frontage between Lexington and Highway 13 on the south side of
Highway 110).
Councilmember Duggan moved to adopt Resolution 2016-12, ESTABLISHING MUNICIPAL STATE
AID STREETS.
Councilmember Petschel seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Povolny)
page 5
J) APPROVAL OF A PURCHASE ORDER FOR SPRING STREET SWEEPING
Councilmember Petschel asked for clarification on taking the lowest bid if the City feels they have been
an underperformer in the past. Public Works Director Mazzitello replied that the contract this year is
very specific; the company is required to provide four street sweepers, they have to complete the work
within a specified timeframe. There are also penalties written into the contract. Staff is comfortable
working with the low bidder again this year given the conditions of the contract.
Councilmember Duggan asked for the contributing factors for significant increase in the cost. Mr.
Mazzitello replied that the proposal asked the contractors to bid for a total of 240 hours. It actually took
172 hours to do the work last year. Since the City is going to be billed by the hour, the total cost of the
street sweeping should be lower than what was bid.
Councilmember Duggan moved to authorize a purchase order to Pearson Bros, Inc. for the 2016 street
sweeping contract.
Councilmember Petschel seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Povolny)
K) ADOPT RESOLUTION 2016-20, CALL FOR PUBLIC HEARING ON THE MNDOT HIGHWAY
110 REHABILITATION PROJECT AND REQUEST FOR LOCAL GOVERNMENT APPROVAL
Public Works Director John Mazzitello explained this resolution calls for a public hearing to be held on
April 5, 2016, which is part of the requirements of the Highway110 rehabilitation project. If any access
changes will be made to the highway, then MnDOT needs to receive municipal consent from the City
Council. One of the accesses being considered for closure is the right in/right out at SuperAmerica.
Mr. Mazzitello stated that the modifications planned for the entrance into the Crown Point subdivision
are in the median, so that will not be a part of the discussion. The right in/right out at Mendota Plaza will
be driven by the next phase of the Mendota Plaza development.
Mayor Krebsbach asked if the Council could object if it so chose. Engineer Mazzitello replied that there
would be three options presented on April 5, 2016: to grant municipal consent; to abstain from
municipal consent (not giving approval but not denying it either); or deny municipal consent.
Councilmember Duggan requested that staff notify the businesses that would be impacted by the loss of
the right in/right out. Mr. Mazzitello noted that the Department of Transportation had extensive
conversations with the businesses that will be impacted by the construction project.
Councilmember Duggan moved to adopt Resolution 2016-20, CALLING FOR PUBLIC HEARING ON
MN DOT PROJECT TO REHABILITATE TRUNK HIGHWAY 110 AND REQUEST FOR LOCAL
GOVERNMENT APPROVAL.
Councilmember Norton seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Povolny)
page 6
L) APPROVE RIGHT-OF-WAY LICENSE AGREEMENT FOR THE ROGERS LAKE PROPERTY
OWNERS ASSOCIATION TO PROVIDE LANDSCAPING ALONG WAGON WHEEL TRAIL
Councilmember Petschel noted that there has been an issue in the past with the DNR not limiting fishing
at the culvert. This landscape plan, with the new plantings and the fencing around it, is going to
constructively eliminate fishing at the culvert. She asked what the City's position is on that issue.
Public Works Director Mazzitello replied that in the past staff has requested that the DNR put up signs
to prohibit fishing at the culvert because of the public safety concern. The project that the Association is
proposing would inhibit the ability to fish at the culvert but would not eliminate it. The hope is that by
directing people to the fishing pier at Rogers Lake Park during the construction of the landscape
improvements, the practice would remain after the plantings are completed.
Mayor Krebsbach asked about the duration of the license. Engineer Mazzitello replied that the duration
of this license would be at the City's discretion. Mayor Krebsbach then stated that she would like to see
a renewal date in the agreement and she would like to see the landscaping plan.
Councilmember Duggan moved to table the license agreement with the Rogers Lake Property Owners
Association to the March 15, 2016 City Council Meeting to allow for staff to include a renewal date in
the agreement and to provide the landscaping plan.
Councilmember Petschel seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Povolny)
PUBLIC COMMENTS
Mr. Art Mulvihill, 1154 Orchard Place, stated that when the new street was put in, it was lowered, which
gives him struggles to get in his driveway. He asked why the grade of the street was changed and
requested that it be put back to the original grade. The street includes a surmountable curb and gutter.
He has never had a drainage problem on his property until 1993 and he requested the City Council to
take care of it.
Mayor Krebsbach noted that staff and Council are aware of this issue. City Attorney Andrew Pratt
agreed to work with Public Works Director John Mazzitello to try and resolve this issue.
PRESENTATIONS
A) RECOGNITION OF PLANNING COMMISSIONER VIKSNINS
Mr. Ansis Viksnins, who served on the Planning Commission from 2007 to 2016, was recognized for his
service to the City of Mendota Heights. Mayor Krebsbach and Planner Nolan Wall presented Mr.
Viksnins with a plaque expressing the City's appreciation.
page 7
B) FUTURE CITIES COMPETITION —
FRIENDLY HILLS MIDDLE SCHOOL TEAM PRESENTATIONS
Public Works Director John Mazzitello and Friendly Hills Middle School Teacher Ms. Crystal Mielke
introduced the teams from Friendly Hills Middle School who participated in the Future Cities
Competition, sponsored by the American Society of Civil Engineers. This year's theme was "Waste Not,
Want Not" and challenged the students to effectively handle solid waste in their City, utilizing the four
R's (Reduce, Reuse, Recycle, and Rot).
Each team was asked to name three aspects of their city. The teams that presented included:
• Team Viva El Paco -located in the rainforest in Costa Rica, the year is 4242, energy is provided
by burning waste, which powers an electromagnetic turbine, transportation is by gondolas and
bridges, uses automated tube system to sort the trash
• Team Oceanside Villa - the city is floating above the ocean, uses a system which has tubes
coming down from the city, sucking up the water from the ocean and pushes the city up into the
air, one way of disposing of waste is by using mealworms, dead beetles are burned for energy,
also use partacra cycling, using the Law of Conservation of Mass
• Team Ways Willow - located off of the coast of Brazil, under water with a dome, use a bio -
energy transit machine (BETM), which burns waste and turns it into energy for the city, in case
of a breakdown in the BETM there is a waterwheel that can be used, which is another energy
source, the waterwheel uses the current from the ocean water outside of the dome, sewage goes
into the agricultural building and is used as fertilizer
C) ROGERS LAKE WATER QUALITY REPORT — ST. THOMAS ACADEMY
Mr. Tony Kinzley, Advanced Placement Environmental Sciences Instructor, introduced students from
St. Thomas Academy to present their findings of the fall 2015 Chemical Assessment of Rogers Lake.
The trend over the years shows that Rogers Lake is healthy and continues to get healthier. The last three
years has been some of the lake's healthiest years on record. The three areas to watch are biochemical
oxygen demand, phosphates, and total solids.
Councilmembers asked questions regarding how the samples sites are tested, if the numbers are
averaged, and what possible changes could be seen with the implementation of the landscaping plan
discussed earlier in this meeting.
D) NDC4 — PROPOSED CENTURYLINK CABLE TELEVISION FRANCHISE ORDINANCE
Assistant to the City Administrator Tamara Schutta explained that on February 23, 2016, NDC4 adopted
a resolution recommending that each member city grant a cable franchise to CenturyLink. She then
introduced NDC4 Executive Director Jodie Miller and Brian Grogan, legal counsel for NDC4, to
provide a presentation of the draft franchise ordinance and agreement.
page 8
The seven member cities include Inver Grove Heights, Lilydale, Mendota, Mendota Heights, Sunfish
Lake, South St. Paul, and West St. Paul.
Ms. Miller stated that the Cable Commission has been working with CenturyLink on the possible
granting of a cable franchise in the seven -city area. The role of NDC4 Cable Commission is to bring the
recommended ordinance before each city council for their consideration.
Mr. Brian Grogan, an attorney with Moss & Barnett, provided a presentation to the Council explaining
the Federal Cable Act, the background on the Comcast franchise, a background on CenturyLink, the
proposed franchise term, the system build out plan, the PEG Channels, and the NDC4 staff and legal
counsel recommendation. The recommendation of the Cable Commission was to approve the franchise
ordinance as drafted.
A public hearing on this franchise ordinance is scheduled for the March 15, 2016 City Council meeting.
No items scheduled.
PUBLIC HEARING
NEW AND UNFINISHED BUSINESS
Councilmember Petschel moved to amend the agenda by acting on item 9B before item 9A.
Councilmember Norton seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Povolny)
B) RESOLUTION 2016-19, GRANTING COMCAST OF ST. PAUL, INC.
A FRANCHISE EXTENSION TO MARCH 31, 2017
Assistant to the City Administrator Tamara Schutta explained that NDC4, who manages the current
Comcast franchise, extended the franchise agreement last year with a deadline of March 31, 2016.
Because NDC4 is still in negotiations with Comcast, they have asked the City to extend the franchise
agreement to March 31, 2017.
Councilmember Duggan recommended a small grammatical amendment to the resolution.
Councilmember Duggan moved to approve Resolution 2016-19, GRANTING COMCAST OF ST.
PAUL, INC. A FRANCHISE EXTENSION TO MARCH 31, 2017 as amended.
Councilmember Norton seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Povolny)
page 9
A) ORDINANCE 491, CONCERNING DEFINITIONS AND INDUSTRIAL DISTRICT USES,
PLANNING CASE 2016-04
Planner Wall explained the proposed amendments to Title 12, Chapter 1, Articles B and G of the City
Code concerning definitions and industrial district uses. The City finalized the Industrial District
Redevelopment Plan and is proceeding with implementing several recommendations that were included
in that plan.
The Planning Commission held a public hearing at their meeting in January and again in February. Their
proposed recommendations were encompassed in the draft ordinance being presented.
Planner Wall reviewed each section of the proposed ordinance and received suggestions and comments
from Councilmembers. Under Title 12 -1G -1-A: Permitted Uses, Mayor Krebsbach stated she opposes
adding "governmental buildings and structures" as a permitted use to address the existing public works
garage. She recommended using "municipal buildings and structures". Councilmember Petschel
concurred.
Mayor Krebsbach stated she opposes the change proposed for the "trade schools, colleges, and
universities permitted use" and would like to see it designated as a conditional use or not allowed in the
Industrial District. Councilmember Petschel stated she would like to leave schools as stated in the
proposed ordinance. Councilmember Norton stated the issue of allowing or not allowing schools in the
Industrial District is a topic that should be discussed at a Council workshop.
Mayor Krebsbach recommended removing the paragraph related to Massage Therapy Services for
purposes of a teaching program as a conditional use, since there is no need to call out a specific
program. Councilmembers Norton and Petschel recommended discussing the school use issue at a
workshop meeting.
Councilmember Petschel inquired about a fast food restaurant being incorporated inside a motor fuel
station convenience store. Planner Wall stated it would potentially be allowed if it is incorporated inside
a convenience store.
Councilmember Duggan moved to adopt ORDINANCE 491 CONCERNING DEFINITIONS AND
USES IN THE INDUSTRIAL DISTRICT with three minor non -substantive changes as discussed.
Councilmember Norton seconded the motion.
Ayes: 3
Nays: 1 (Krebsbach)
Absent: 1 (Povolny)
COMMUNITY ANNOUNCEMENTS
Assistant to the City Administrator Tamara Schutta made the following announcements:
• March 9th is the Airport Commission Open House at 7:00 p.m., which will be broadcast. MAC
and FAA will be on hand to talk about noise issues, airport development, and other questions
residents may have.
• The latest Heights Highlights newsletter has recently been delivered to residents.
• Summer recreation programs are now listed on-line and registration will begin March 14, 2016.
page 10
COUNCIL COMMENTS
Councilmember Petschel noted that she, Councilmember Norton, Chief of Police Michael Aschenbrener,
and Assistant to the Administrator Tamara Schutta attended a program through Dakota County on the
management of local emergencies and disasters and what the role of elected officials is in those cases.
She also mentioned the issue of Delta Airline's direct flights to Tokyo being in jeopardy.
Councilmember Duggan wished everyone a Happy St. Patrick's Day.
He also mentioned that on Easter Monday in 1916, Ireland decided to push England out of Ireland;
known as a rising. Almost 100 years later Ireland is doing OK.
ADJOURN
Councilmember Duggan moved to adjourn.
Councilmember Norton seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Povolny)
Mayor Krebsbach adjourned the meeting at 9:19 p.m.
Sandra Krebsbach
Mayor
ATTEST:
Lorri Smith
City Clerk
page 11
CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA
PARKS AND RECREATION MEETING
January 12, 2016
The December meeting of the Mendota Heights Parks and Recreation Commission was held on
Tuesday, January 12, 2016 at Mendota Heights City Hall, 1101 Victoria Curve.
Chair Hinderscheid called to order the parks and recreation commission meeting at 6:30 p.m.
The following commissioners were present: Chair Hinderschied, Commissioners: Stephanie
Levine, Jack Evans, Joel Paper, Ira Kipp David Miller and Michael Toth. Staff present:
Recreation Programmer Sloan Wallgren.
Approval of Agenda
COMMISSIONER LEVINE MADE A MOTION TO APPROVE THE AGENDA;
COMMISSIONER PAPER SECONDED THE MOTION.
AYES 6: NAYS 0
Approval of Minutes from December 8, 2015
COMMISSIONER PAPER MADE A MOTION TO APPROVE THE MINUTES FROM THE
December 8, 2016 MEETING; COMMISSIONER MILLER SECONDED THE MOTION.
AYES 6: NAYS 0
Announcements
Mr. Wallgren announced that registration will soon be open for Mendota Heights Youth
Athletic Association T -ball, lacrosse, and in-house baseball & softball.
Winter Recreation Activities
Mr. Wallgren update the commission on all of the winter activities that are taking place such
as: hockey, skating lessons, and gymnastics lessons, cross country skiing and fat tire biking.
Mendota to Lebanon Hills Greenway
Mr. Wallgren updated the commission on the status of the Dakota County Mendota to Lebanon
Hills Greenway Regional Trail. The council has expressed their desire of the type of crossing
and the location of the crossing. Staff would update the commission when more information
becomes available from Dakota County.
Election of Chair and Vice -Chair
Mr. Wallgren informed the commission that they should start to think about electing a Chair
and Vice -Chair at their next meeting. Chair Hinderscheid indicate that he would be happy to
serve as Chair again unless another individual was interested.
City Wide Trail Plan
Staff informed the commission that they would be seeking approval from the council to apply
for a grant to help update the City Wide Trail Plan. As part of the grant, a separate study
would look at Dodd Road and the opportunities for implementing bike/pedestrian trails near
Dodd Road in the future.
MH Parks and Recreation Commission 1-12-2016 Page 1
page 12
2015 Activity Log
Chair Hinderscheid provide the commission with a copy of the activity log from the past year. He
highlighted some of the accomplishments in the past year such as: adding two student
representatives to the commission, the new warming house at Marie Park, new tennis court
surface at Ivy Hills Park, the canoe rack at Rogers Lake Park, the new hockey boards at
Wentworth Park and the Off -Leash Dog Area.
Commission Comments
Commissioner Miller was glad to see a list of all the things that have gotten accomplished over the
last year and was glad to see the plans for the future.
Commissioner Levine thanked the council for adopting the Pollinator -Friendly resolution.
Commissioner Toth encouraged everyone to be safe out on the ice, and stay off when it is not
safe.
Commissioner Paper thanked Commissioner Evans for his service and encouraged everyone to
get out and use the rinks.
Commissioner Evans thanked everyone for the jobs they did, he enjoyed his time on the Parks
Commission. He also enjoys living in Mendota Heights and is excited for the future of Mendota
Heights.
Commissioner Kipp thought it was a good meeting.
Chair Hinderscheid thanked Commissioner Evans for being involved with commission. He also
thanked Cindy Johnson and Sue Light, who are both Master Gardener and residents of Mendota
Heights, for meeting with members of the commission before the meeting.
COMMISSIONER PAPER LEVINE A MOTION TO ADJURN THE MEETING.
COMMISSIONER EVANS SECONED THE MOTION.
AYES 7: NAYS 0
The meeting adjourned at 7:30 p.m. Respectfully Submitted by Sloan Wallgren
MH Parks and Recreation Commission 1-12-2016 Page 2
page 13
Mendota Heights Parks & Recreation
2015 Annual Report
Mendota Heights Parks & Recreation Department
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1
page 14
Mission Statement
The mission of Mendota Heights Parks & Recreation Department is to provide facilities, activities, and
parklands to enrich the lives of residents and vistitors.
Parks and Recreation Commission Members
Jack Evans
Pat Heinderscheid, Chair
Ira Kipp
Stephanie Levine
David Miller
Joel Paper
Michael Toth
Parks and Recreation Commission
The Parks and Recreation Commission is a seven member advisory board to the city council on matters
relating to parks and recreation including:
• Plan and develop programs and activities.
• Develop schedules of hours and fees for the use of recreational trails and park facilities.
• Study possible government and private foundation grants available for the acquisition and development
of park and trail facilities.
• Develop plans for improvement and betterment of existing facilities.
• Develop plans for acquisition of additional facilities.
• Coordinate recreational trail and park activities with other community organizations and groups.
• Promote public interest and understanding of the city's parks and trails activities
Parks and Recreation Staff
Public Works Director John Mazzitello
Public Work Superintendent Terry Blum
Assistant to the City Administrator...Tammy Schutta
Recreation Program Coordinator Sloan Wallgren
Parks Maintenance Lead John Boland
Parks Maintenance Cliff Kirschner
Parks Maintenance Mike Maczko
Mechanic Nick Courteau
The Parks and Recreation Department also employs 40 part-time seasonal employees.
Mendota Heights Parks and Recreation Department 2
page 15
Parks Department
Parks staff annually maintains more than 310 acres of
public land.
Facilities under the stewardship of the Parks
Department included 8 picnic shelters, 1 fishing pier, 12
softball and baseball fields, 3 soccer fields, 1 sand
volleyball court, 1 cross country ski trail, 3 hockey rinks,
4 skating rinks, 3 warming houses, 26 miles of trails, 11
playgrounds, to tennis courts, to basketball courts, an
off -leash dog area and a skate park.
Mendota Heights Parks
•
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Civic Center
Copperfield Ponds
Friendly Hills Park
Friendly Marsh Park
Hagstrom-King Park
Historic Pilot Knob
Ivy Hills Park
Kensington Park
Market Square Park
Marie Park
Mendakota Park
Rogers Lake Park
Valley Park
Valley View Heights Park
Victoria Highlands Park
Wentworth Park
State, Regional and Private Parks
Fort Snelling State Park
Harriet Island-Lilydale Regional Park
Dodge Nature Center
School District 197
Big Rivers Regional Trail
River to River Greenway
Mendota Heights Parks and Recreation Department
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Mendota Heights Parks and Recreation Department
3
page 16
2015 Parks Department Highlights
• The Parks Department closed a gap in the trail system from Lilydale Road to Wachtler Ave
along Hiway 13.
• A 3 acre temporary Off -Leash Dog Area was established near Historical Pilot Knob and Acacia Cemetary
• Parks staff continue to provide support and facilities for many community festivals and events. Park
Facilities hosted the following large scale special events:
Special Olympics 5K
Mendota Heights Parks Celebration
Cliff Timm Fishing Derby
Numerous Baseball/Softball Tournaments
• The city installed a new Sport Court
tile system to the tennis courts at Ivy
Hills Park.
• The Marie Park warming house was rebuilt, and 4 pickelball courts were striped in the hockey rink.
A canoe/kayak rack was built and installed at Rogers Lake Park.
• New hockey boards were installed at Wentworth Park.
Mendota Heights Parks and Recreation Department
4
page 17
Recreation Department Highlights
The Recreation Department's main objectives are to provide recreation programs, events and activities, en-
courage the use of parks and trails, and promote an active lifestyle.
The Recreation Department partnered with Dakota County Budgeted Revenue =$50,000
to offer the Simple Steps Program. The Simple Steps Walking Actual Revenue=$48,000
Program is a great way to boost energy, reduce stress and
• improve your health. Regular physical activity helps prevent Budgeted Expenses=$47,000
chronic diseases like diabetes, cardiovascular disease and
cancer and can help you maintain a healthy weight.
• Programs : in 2015 the Recreation Department offered:
• 3 Adult Softball Leagues with over 35o participants
• 20 Youth Tennis Programs with 260 participants
• 12 Youth Field Trips with 40o participants
• 12 Playground Programs with 27o participants
▪ 13 Youth Programs with 45o participants
22 Free Performances in the Park at Market Square
Actual Expenses=$43,000
• During the 2014-2015 winter we had 5,000+ skaters use our three hockey rinks and four pleasure rinks.
• New Programs included the Traveling Parks Program and Fishing Fridays.
• Coordination of field use with the Mendota Heights Athletic Association for over 1,800 youth
participants, as well as coordinate field use for St. Thomas Academy, Visitation, St. Joseph and Trinity.
Mendota Heights Parks and Recreation Department
5
page 18
Volunteer Efforts—Park Partners
Volunteers Helped steward Mendota Heights Parks, Trails and Green Spaces in 2015 through adopting
parks and trails, beautifying community spaces and volunteering to clean up liter and debris.
Park Volunteers keep Mendota Heights beautiful and a
great place to live.
• Henry Sibley Girl's Tennis Team cleaned up Rogers
Lake Park as a fundraiser.
• The Mendota Heights Mom's Club celebrated Earth
Day by cleaning up the parks.
• Volunteers from St. Thomas Academy helped to
groom the cross coutry ski trail at the Par 3.
• The Mendota Heights Mom's Club annually donates a
tree to a park. In 2015 a tree was dontated and
planted at Mendakota Park.
• Volunteer helped to remove buckthorn from Valley
Park.
A bench was donated by Mr. Roland Flynn in
memory of his wife. The bench is located
along the bike/pedestrian trail at
Lexington Ave & Avanti Drive.
Mendota Heights Parks and Recreation Department 6
page 19
Mendota Heights Par 3 Golf Course
The Mendota Heights Par 3 is a self-supporting enterprise. Revenues generated by the course as well as
retained earnings pay for all expenses including depreciation, equipment replacement, and capital
improvements. The Par 3 is a seasonal facility, generally opening in Mid -April and closing in Mid -
November.
Mendota Heights Par 3
• The Mendota Heights Par 3 had over 10,000 rounds of golf played in 2015.
• The golf course offered four golf leagues for adults and five golf leagues for youth. In 2015 there
were over 400 participants in our leagues.
• The golf course hosted over 25 special events.
• Over 25o youth participated in one of
our 22 golf lesson programs.
• The sport of footgolf continued to grow
and there were over 4,000 rounds of
footgolf played at the Par 3 this year.
• In 2015 the golf course purchased
new ball washers for the tee boxes.
• Locals are gathering at the clubhouse
to play cribbage and scrabble during
the slower months.
• Total revenue for 2015 was
$167,253 and total expenses were
$139,742 resulting in a net profit of
$27,511. The Golf Course Fund has a
year end cash balance of $62,000.
• The golf course purchased a piece of
equipement to verticut the greens.
This has helped improve the health
and quality of the greens.
Mendota Heights Parks and Recreation Department
7
page 20
1101 Victoria Curve 1 Mendota Heights, MN 55118
651.452.1850 phone 1 651.452.8940 fax
www.mendota-heights.com
CITY OF
MENDOTA HEIGHTS
Request for City Council Action
MEETING DATE: March 15, 2016
TO: Mayor, Council and City Administrator
FROM: Mike Aschenbrener, Chief of Police / Emergency Manager
SUBJECT: RESOLUTION 2016-02 ACCEPTING A GIFT TOWARD THE
PURCHASE OF AN AUTOMATIC EXTERNAL DEFIBRILATOR
(AED)
COMMENT:
BACKGROUND
The City Auditor has advised that Minnesota State Statute 465.03 "Gifts to municipalities"
requires all donations be acknowledged by Resolution. This memo meets Minnesota State
Statutory requirements.
We have received an amazing response from of our citizens to donate funds toward the purchase
of new AED units. The donors include the following:
2015/16 AED DONATIONS
NAME HONORARY OR MEMORIAL (if known) AMOUNT
MARGIE SCHERZER MARVIN SCHERZER $3000.00
WINIFRED SCHUMI $ 500.00
ROBERT LINC $ 20.00
MAVIS KARN $ 50.00
PATTERSON DENTAL $4400.00
DALE JOHNSON 1N HONOR OF MHPD & MHFD $1500.00
page 21
STUART SIMEK $1230.00
NEIL GARLOCK $200.00
JOHN PETERSON $50.00
THOMAS KOEPKE $20.00
Total: $11,970.00
Thank you letters along with the resolution will be sent to all of our generous donors after the
resolution has been passed.
BUDGET IMPACT
These were unbudgeted purchases with direction to seek community donations.
RECOMMENDATION
If Council desires to implement the recommendation, a motion will need to be passed adopting
RESOLUTION 2016- 02 "FORMALLY ACCEPTING A GIFT TOWARD THE PURCHASE
OF AN AUTOMATIC EXTERNAL DEFIBRILLATOR (AED)."
City of Mendota Heights
Dakota County, Minnesota
RESOLUTION 2016-02
ACCEPTING A GIFT TOWARD THE PURCHASE OF
AN AUTOMATIC EXTERNAL DEFIBRILLATOR (AED)
page 22
WHEREAS, the City of Mendota Heights desires to provide the highest level of care at
emergency medical responses; and
WHEREAS, the Minnesota State Statute requires a resolution to accept gifts to
municipalities; and
WHEREAS, the City has previously acknowledged gifts with a resolution; and
WHEREAS, the City of Mendota Heights encourages and supports citizens who wish to
participate in government; and
WHEREAS, the Mendota Heights Police and Fire Departments regularly respond to
medical emergencies involving heart related problems; and
WHEREAS, the police officers and fire fighters for the City of Mendota Heights are
trained First Responders to use Automated External Defibrillators; and
WHEREAS, our Medical Director Dr. Keith Wesley has advised our current Automated
External Defibrillator units are no longer meeting the best practices level of care for cardiac
incidents; and
WHEREAS, it is the desire of the Mendota Heights Police and Fire Departments to
provide the highest level of care to our citizens; and
WHEREAS, in the First Responders have regularly had the opportunity to save lives
using this equipment and desire to continue to provide the best care for our residents; and
WHEREAS, the Medical Director recommends the same technology as is being used by
our responding paramedics to assist in providing the best outcomes for our residents; and
WHEREAS, the City Council of the City of Mendota Heights have duly considered this
matter and wish to acknowledge the civic mindedness of citizens and officially recognize their
donations.
page 23
NOW THEREFORE BE IT HEREBY RESOLVED that the City Council of the City of
Mendota Heights accepts the donations from the following donors towards for the purchase of
AED units, priced at $1100 each.
NAME HONORARY OR MEMORIAL (if known) AMOUNT
MARGIE SCHERZER MARVIN SCHERZER $3000.00
WINIFRED SCHUMI $ 500.00
ROBERT LINC $ 20.00
MAVIS KARN $ 50.00
PATTERSON DENTAL $4400.00
DALE JOHNSON IN HONOR OF MHPD & MHFD $1500.00
STUART SIMEK $1230.00
NEIL GARLOCK $200.00
JOHN PETERSON $50.00
THOMAS KOEPKE $20.00
Total: $11,970.00
Adopted by the City Council of the City of Mendota Heights this 15th day of March, 2016.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Sandra Krebsbach, Mayor
ATTEST:
Lorri Smith, City Clerk
page 24
1101 Victoria Curve 1 Mendota Heights, MN 55118
651.452.1850 phone 1 651.452.8940 fax
www.mendota-heights.com
CITY OF
MENDOTA HEIGHTS
Request for City Council Action
MEETING DATE: March 15, 2016
TO: Mayor and City Council, City Administrator
FROM: Mike Aschenbrener, Chief of Police / Emergency Manager
SUBJECT: RESOLUTION 2016-21 TO PARTICIPATE IN ALL HAZARD
MITIGATION PLANNING PROCESS
COMMENT:
Introduction
As keeping our residents safe when disaster strikes is an important part of mission we work hard
to meet state and federal planning requirements. We have another opportunity to partner with
neighboring governments to produce a joint plan together saving money.
Background
In 2005 and in 2010, the County partnered with cities in the county to prepare a plan to reduce
damages related to disaster events and ensure that communities remain eligible for FEMA
(Federal Emergency Management Agency) funds to mitigate and recover from disaster. This
multi jurisdictional plan is the Dakota County All -Hazard Mitigation Plan, approved in 2006 and
2011. FEMA requires the plan be updated every five years: an updated plan is due in 2016.
The County and incorporated cities are required to have a plan and may choose to develop their
own plan or partner on a multi jurisdictional plan. The city has in the past worked on an all-
inclusive plan with other cities and Dakota County. County staff has identified a process and
specific information needs for this update. The existing plan is posted on the Dakota County web
site at www.dakotacounty.us search mitigation plan.
If we do not have an approved mitigation fund we are not eligible to receive money from FEMA
in the event of a disaster. The city must pass a resolution, attached, stating that it will participate
in the multijurisdictional plan. City staff must work on the plan.
Budget Impact
By agreeing to work cooperatively with our neighboring governments we will save the cost of
developing the mitigation plan as an individual city. Estimated time savings 120 hours and
estimated time spent working cooperatively 20 hours.
Recommendation
page 25
Staff recommends that the Mendota Heights City Council approve resolution 2016-021 and
direct participation in an all hazard mitigation planning process.
Action Required
If Council desires to implement the recommendation, a motion will need to be passed adopting
RESOLUTION 2016- 21 TO PARTICIPATE IN ALL HAZARD MITIGATION PLANNING
PROCESS.
page 26
City of Mendota Heights
Dakota County, Minnesota
RESOLUTION 2016-21
TO PARTICIPATE IN ALL HAZARD MITIGATION PLANNING PROCESS
WHEREAS, the County of Dakota coordinated preparation of an initial multi jurisdiction all -hazard
mitigation planning process as established under the Disaster Mitigation Act of 2000; and
WHEREAS, the City of Mendota Heights participated in drafting the plan, and later reviewed and
approved the plan; and
WHEREAS, federal law requires the plan be updated every five years; and
WHEREAS, the Act requires public involvement and local coordination among local units of
government and businesses as part of the planning process; and
WHEREAS, the plan must include descriptions of land uses and development trends, risk
assessment including past hazards, hazards that threaten the county, maps of hazards, and estimates
of structures at risk; and
WHEREAS, the plan must include a mitigation strategy including goals and objectives and an action
plan identifying specific mitigation projects and costs, in addition to ; and a maintenance or
implementation process including plan updates, integration of the plan into other planning
documents, and public education components; and
WHEREAS, approval of the all hazard mitigation plan update will continue the County's eligibility
to receive federal and state Hazard Mitigation Grant Program project grants; and
WHEREAS, this resolution does not preclude the City of Mendota Heights from preparing its own
plans sometime in the future should they desire to do so.
NOW THEREFORE BE IT RESOLVED that the City of Mendota Heights supports the County all
hazard mitigation planning effort, agrees to participate with the County in preparing an update to the
multi jurisdictional plan and recognizes that the plan will apply within the townships.
Adopted by the City Council of the City of Mendota Heights this 15th day of March, 2016.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
ATTEST: Sandra Krebsbach, Mayor
Lorri Smith, City Clerk
CITY OF
MENDOTA HEIGHTS
page 27
1101 Victoria Curve 1 Mendota Heights, MN 55118
651.452.1850 phone 1 651.452.8840 fax
www.menclota-heights.com
Request for City Council Action
MEETING DATE: March 15, 2016
TO: Mayor and City Council, City Administrator
FROM: Mike Aschenbrener, Chief of Police
SUBJECT: RESOLUTION 2016-25 AUTHORIZING EXECUTION OF
AGREEMENT WITH MN DEPARTMENT OF PUBLIC SAFETY
COMMENT:
Introduction
The Minnesota Department of Public Safety posted a grant to renew in squad technology in the
fall of 2014. Sergeant Eric Petersen applied for and received a grant award of $11,902.43 to
purchase squad laptop computers, docking stations, printers and driver's license magnetic card
readers. The city is required to match the $11,902.43 and in return will receive 5 new sets of
squad equipment.
In 2015 we did not replace squad computers as we were anticipating spring of 2015 dispersal of
funds. No monies were released in 2015. We have been notified the grant funds are available
for release.
The grant requires a council authorization resolution, copy attached, before executing the grant.
Budget Impact
In 2016 we will purchase computer equipment for five of the six black and white squads. Two
are due for replacement in 2016 and three were scheduled to come out of service in 2015. The
city will save $11,902.43 over the life of the equipment.
Recommendation
Staff recommends that the Mendota Heights City Council approve Resolution 2016- 25
authorizing Chief Aschenbrener and Sergeant Petersen to sign the grant forms.
Action Required
If Council desires to implement the recommendation, a motion will need to be passed adopting
RESOLUTION 2016-25 AUTHORIZING EXECUTION OFAGREEMENT WITH
MINNESOTA DEPARTMENT OF PUBLIC SAFETY.
page 28
City of Mendota Heights
Dakota County, Minnesota
RESOLUTION 2016-25
AUTHORIZING EXECUTION OFAGREEMENT WITH
MINNESOTA DEPARTMENT OF PUBLIC SAFETY
WHEREAS, the City of Mendota Heights desires attain a grant from the Minnesota
Department of Public Safety; and
WHEREAS, the Minnesota Department of Public Safety will cover up to one half of the
total costs of replacing approved equipment; and
WHEREAS, the state requires a City Council Resolution authorizing participation and
execution; and
WHEREAS, the grant is for traffic safety projects during the period from October 1,
2014 through September 30, 2016; and
WHEREAS, the City Council of the City of Mendota Heights has duly considered this
matter and wishes to continue to support traffic safety functions with in the police department.
NOW THEREFORE BE IT HEREBY RESOLVED that the City Council of the City
of Mendota Heights enter into a grant agreement with Minnesota Department of Public Safety
and Chief Michael Aschenbrener is hereby authorized to execute such agreements and
amendments as are necessary to implement the project on behalf of the City of Mendota Heights
Police Department and to be the fiscal agent and administer the grant..
Adopted by the City Council of the City of Mendota Heights this 15th day of March 2016.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Sandra Krebsbach, Mayor
ATTEST:
Lorri Smith, City Clerk
CITY OF
MENDOTA HEIGHTS
page 29
1101 Victoria Curve 1 Mendota Heights, MN 55118
651.452.1850 phone 1 651.452.8940 fax
www.mendota-heights.com
Request for City Council Action
MEETING DATE: March 15, 2016
TO: Mayor and City Council, City Administrator
FROM: John R. Mazzitello, PE, PMP, MBA
Public Works Director/City Engineer
SUBJECT: Right of Entry Permit for City Property Granted to MnDOT
COMMENT:
Introduction
The Minnesota Department of Transportation (MnDOT) plans to rehabilitate Highway 110
during the 2017 construction season. As part of this project, construction limits and staging will
require MnDOT to utilize a portion of a city owned parcel on the north side of Highway 110.
Background
MnDOT has been developing plans for the Highway 110 project for the past year, and they are at
a point where the construction staging and phasing plans are being completed. Because of the
scope of the project, and the inclusion of the Dakota County pedestrian underpass project, work
on the MnDOT project will extend outside of their established right-of-way. The City owns the
property immediately north of Highway 110 between Highway 149 (Dodd Road) and Oak Street,
where the proposed work will take place.
Discussion
The attached permit and corresponding approval Resolution will grant MnDOT permission to
utilize the area described below for construction purposes during the project and the
corresponding warranty period.
Outlot A, MENDOTA HEIGHTS TOWN CENTER
In order to accommodate the project warranty period, and to allow for MnDOT to make any
landscape restoration repairs after the project, the permit will expire on December 1st, 2020.
It has been the past practice for either the Public Works Director/City Engineer, or the City
Administrator to actually sign permits such as this one after Council approval, so the attached
Resolution also authorizes the Public Works Director/City Engineer and/or the City
Administrator to sign the permit.
page 30
Budget Impact
There is no anticipated budget impact other than the staff time to process to review and approve
the permit.
Recommendation
Staff recommends Council approve the attached Resolution 2016-23, RESOLUTION
AUTHORIZING A PERMIT GRANTING RIGHT OF ENTRY TO CITY OWNED
PROPERTY FOR THE HIGHWAY 110 REHBILITATION PROJECT TO MnDOT.
Action Required
If Council wishes to enact the staff recommendation, pass a motion approving the attached
Resolution 2016-23, RESOLUTION AUTHORIZING A PERMIT GRANTING RIGHT
OF ENTRY TO CITY OWNED PROPERTY FOR THE HIGHWAY 110
REHBILITATION PROJECT TO MnDOT. This action requires a simple majority vote.
page 31
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2016-23
RESOLUTION AUTHORIZING A PERMIT GRANTING RIGHT OF
ENTRY TO CITY OWNED PROPERTY FOR THE HIGHWAY 110
REHBILITATION PROJECT TO MnDOT
WHEREAS, the Commissioner of Transportation has prepared a final layout for State
Project 1918-110 on State Trunk Highway 110, from Highways 13/55 to I494 within the City of
Mendota Heights for roadway, access, signing, water resource and Americans with Disabilities
Act (ADA) improvements to take place in 2017; and
WHEREAS, in order to complete the proposed improvements, the Minnesota
Department of Transportation (MnDOT) will need to access and work upon a City owned parcel
of land described as follows; and
Outlot A, MENDOTA HEIGHTS TOWN CENTER
WHEREAS, it is necessary to allow MnDOT to make repairs to Highway 110 due to
ongoing pavement condition, access, signing, ADA, and drainage issues.
NOW THEREFORE, BE IT RESOLVED, the Mendota Heights City Council hereby
approves and authorizes a permit granted to MnDOT for construction activity to take place on
City owned property as described above.
BE IT FURTHER RESOLVED, the Mendota Heights City Council herby authorizes
the Public Works Director/City Engineer or City Administrator to sign the permit document.
BE IT FURTHER RESOLVED, per the terms of the executed permit, the permit is to
sunset on December 1, 2020.
Adopted by the City Council of the City of Mendota Heights this 15th day of March, 2016.
CITY COUNCIL
CITY OF MENODTA HEIGHTS
ATTEST Sandra Krebsbach, Mayor
Lorri Smith, City Clerk
Dated: February 23, 2016
page 32
TEMPORARY PERMIT TO CONSTRUCT
C.S. 1918 (110=117) 903
Parcel 232
County of Dakota
The State of Minnesota has by its Commissioner of Transportation established and
designated the route of Trunk Highway No. 110 in Dakota County, Minnesota.
It is necessary that the State of Minnesota use for highway purposes real property situated in
Dakota County, Minnesota, described as follows:
As shown in yellow on attached Exhibit A
The undersigned, having an interest in the above described real property, understand that
they are not required to surrender possession of real property without just compensation and
are not required to surrender lawfully occupied real property without at least 90 days notice.
For a valuable consideration, the undersigned hereby waive these rights and give the State of
Minnesota an immediate right of entry and permit for grading and constructing of new trail.
This Permit will expire on 12/01/2020.
page 33
MINNESOTA DEPARTMENT OF TRANSPORTATION ;
ZERO DOLLAR PER lIT aI01,1044:;
OF 5II,a
IEKE[1117 A
C.S. 1918(110=117)903
S.P. 1918-110 COUNTY Dakota PARCEL NO. 232
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page 34
1101 Victoria Curve 1 Mendota Heights, MN 55118
651.452.1850 phone 1 651.452.8940 fax
www.mendota-hei ghts.com
s
CITY OF
MENDOTA HEIGHTS
MEETING DATE: March 15, 2016
TO: Mayor, City Council and City Administrator
FROM: Tamara Schutta, Assistant to the City Administrator/HR Coordinator
SUBJECT: Personnel Action Items
Item 1: Authorization to begin the recruitment process for two Engineering Intern
Positions (Temporary/Seasonal Employees)
Staff is requesting council approval to begin the recruitment process for two Engineering Intern
positions. In past years, an Engineering Intern has been hired to assist the Engineering Division
with various spring and summer projects. A second one is requested this summer.
The Engineering Department will experience a busy spring and summer with design and
construction projects including the Mendota Road (Highway 110 Frontage Road)
Reconstruction, The rehabilitation of Warrior Drive, Sibley Court, and High Ridge Circle,
Sanitary Sewer Cleaning, Televising and Lining, GIS updates, sign inventory, CAMP monitoring
on Lemay Lake, E Coli monitoring along Interstate Valley Creek, Asset Management inventory
and program implementation, and a stream bank stabilization project for Interstate Valley Creek.
In addition to these projects, the department will be contracting for street striping, crack sealing,
and seal coating; resolving neighborhood drainage issues, updating record drawings, and
working on surface water management issues.
The primary objective of these positions is to assist the Engineering Division of the Public
Works Department with construction staking, construction observation, records management,
geographical information (GIS) data and base mapping, engineering, project development,
planning, public requests and other Division functions as assigned. These positions are intended
for current or recent college students majoring in Civil Engineering, GIS, or other related field.
The hourly rate for these positions is $12.00 per hour.
Staff recommends that council authorize staff to begin the recruitment process for two
Engineering Intern positions.
Item 2: 2016 Public Works Summer Seasonal Hires
At a recent meeting, City Council gave approval for staff to begin the hiring and recruitment
process for the Public Works Department. Employees from the 2015 season have re-applied for
their positions. Applicants were offered their position contingent upon a successful completion
of a criminal background check and council approval. Staff is recommending the following
individuals for employment for the spring/summer 2016 season:
Position Name
Chad Hanson Public Works — Parks Division
Jacob Kreuser Public Works — Parks Division
page 35
Rate of Pay:
$10.75
$10.75
BUDGET IMPACT
Funding for the two Engineering interns is possible, due to the vacant full time position.
Funding for the Public Works seasonal employees is provided in the 2016 budget.
RECOMMENDATION
Staff recommends that the Mendota Heights City Council approves the action requested above
these two items.
3/7/2016
Mendota Heights Building Activity Report
Milrrka, Building Official
February 1, 2016
thr.
February 29, 2016
January 1, 2016
thou
February 29, 2016
January 1, 2015
thou
February 28, 2015
January 1, 2014
thou
February 28, 2014
Building Permit
No.
Valuation
Fee Collected
Building Permit
No.
Valuation
Fee Collected
Building Permit
No.
Valuation
Fee Collected
Building Permit
No.
Valuation
Fee Collected
SFD
1
$ 672,850.00
$7,325.89
SFD
1
$ 672,850.00
$7,325.89
SFD
0
$ -
$0.00
SFD
1
$ 650,000.00
$ 6,116.69
APT
0
$ -
$0.00
APT
0
$ -
$0.00
APT
0
$ -
$0.00
APT
0
$ -
$ -
Townhouse
0
$ -
$0.00
Townhouse
4
$ 1,015,000.00
$11,653.66
Townhouse
0
$ -
$0.00
Townhouse
0
$ -
$ -
Condo
0
$ -
$0.00
Condo
0
$ -
$0.00
Condo
0
$ -
$0.00
Condo
0
$ -
$ -
Misc
18
$ 461,493.00
$ 6,010.90
Misc
41
$ 985,295.00
$ 12,223.01
Misc
54
$ 1,232,171.31
$ 20,147.41
Misc
54
$ 754,556.50
$ 13,553.52
Commercial
0
$ -
$0.00
Commercial
4
$ 1,025,345.00
$10,590.39
Commercial
8
$ 843,208.00
$11,490.71
Commercial
7
$ 1,057,684.00
$ 12,784.16
Sub Total
19
$ 1,134,343.00
$ 13,336.79
Sub Total
50
$ 3,698,490.00
$ 41,792.95
Sub Total
62
$ 2,075,379.31
$ 31,638.12
Sub Total
62
$ 2,462,240.50
$ 32,454.37
Trade Permit
No.
Valuation
Fee Collected
Trade Permit
No.
Valuation
Fee Collected
Trade Permit
No.
Valuation
Fee Collected
Trade Permit
No.
Valuation
Fee Collected
Plumbing
11
$1,000.25
Plumbing
32
$3,207.99
Plumbing
35
$2,609.21
Plumbing
19
$ 1,228.20
Water
1
$10.00
Water
1
$10.00
Water
0
$0.00
Water
1
$ 10.00
Sewer
4
$300.00
Sewer
5
$375.00
Sewer
0
$0.00
Sewer
1
$ 25.00
Mechanical
27
$2,581.08
Mechanical
66
$5,912.93
Mechanical
55
$4,240.55
Mechanical
39
$ 2,554.17
Sub Total
43
$ 3,891.33
Sub Total
104
$ 9,505.92
Sub Total
90
$6,849.76
I
Sub Total
60
$ 3,817.37
License
No.
Valuation
Fee Collected
Licenses
No.
Valuation
Fee Collected
Licenses
No.
Valuation
Fee Collected
Licenses
No.
Valuation
Fee Collected
Contractor
152
$7,600.00
Contractor
186
$9,300.00
Contractor
176
$8,800.00
Contractor
173
$ 8,650.00
Total
214
$ 1,134,343.00
$ 24,828.12
Total
340
$ 3,698,490.00
$ 60,598.871
Total
328
$ 2,075,379.31
$ 47,287.88
Total
295
$ 2,462,240.50
$ 44,921.74
NOTE: All fee amounts exclude SAC, WAC and State Surcharge. Amounts shown will reflect only permit, plan review fee and valuation totals
m
CITY OF
MEN DOT A HEIGHTS
page 37
1101 Victoria Curve 1 Mendota Heights, MN 55118
651.452.1850 phone 1 651.452.8940 fax
www.rnendota-heights.com
Request for City Council Action
MEETING DATE: March 15, 2016
TO: Mayor and City Council, City Administrator
FROM: John P. Maczko, Fire Chief
SUBJECT: Out of Town Travel — FDIC Conference
COMMENT:
Introduction
This item has been placed on the agenda for your consideration, as City Resolution No. 98-04
requires that all out of state travel for city council and city employees be approved by the city
council in advance.
Background
The 2016 Fire Department Instructors Conference is being held April 18, 2016 to April 23, 2016,
in Indiananpolis, 1N. I am recommending that Training Officer Dale Stein and Captain Jeff
Stenhaug attend the conference. I, and several other officers, have attended the conference in the
past and have found it to be a very worthwhile event. The training at this conference is
specifically designed to help fire officers meet the challenges of managing a fire department in
today's ever changing environment.
Budget Impact
The 2016 Fire Department Budget does include $3,500 for the conference for two people to
attend. Costs to be covered include the costs of the travel, hotel, meals, and registration. The
conference registration is $1,240, air fare is about $888.00, meals would be about $370.00, and
the hotel is about 1,000.00 (for three nights) for a total of $3,498.00. Training Officer Dale
Stein and Captain Jeff Stenhaug would take time off from their regular jobs to attend the
conference.
Recommendation
Staff recommends that the Mendota Heights City Council approve the out of town travel for
Training Officer Stein and Captain Stenhaug as this is a win-win for the department and the City.
Action Required
If the City Council concurs with the recommendation, they should pass a motion authorizing
Training Officer Dale Stein and Captain Jeff Stenhaug to travel out of state to the Fire
Department Instructors Conference being held in Indianapolis, IN.
page 38
1101 Victoria Curve 1 Mendota Heights, MN 55118
651.452.1850 phone 1 651,452.8940 fax
www.mendota-heights.com
CITY OF
MENDDTA HEIGHTS
MEETINGDATE:
TO:
FROM:
SUBJECT:
BACKGROUND
Significant Claims
Request for City Council Action
March 15, 2016
Mayor, City Council and City Administrator
Kristen Schabacker, Finance Director
Claims List Summary
Metro Council Environmental Services — Sewer Service & Jan SAC
Xcel Energy - Utilities
A to Z Home Inspection — February Inspections
Cargill — Road Salt
Ehlers & Associates — Financial Management Plan
Lower Mississippi River WMO — 2016 Membership Dues
Metro Council Environmental Services — Sewer Service & Feb SAC
Minnesota Pump Works — Lift Station Repairs
Savatree — Tree Care — Parks
Xcel Energy — Utilites
Manual Checks Total
System Checks Total
Total for the list of claims for the March 15, 2016 city council meeting
RECOMMENDATION:
$ 106,874.27
$ 14,427.93
$ 6,380.00
$ 18,057.12
$ 8,740.00
$ 13,878.70
$ 99,493.82
$ 6,008.12
$ 4,100.00
$ 13,356.68
$ 131,664.70
$ 254,689.70
$ 386,354.40
Staff recommends that the Mendota Heighs City Council approve the list of claims for March 15,
2016.
Account
CITY OF MENDOTA HEIGHTS
Claims List
MANUAL CHECKS
02/29/16 MAN
Comments DEPT Descr
Amount
page 39
03/10/16 11:32 AM
Page 1
Search Name i C M A RETIREMENT 457
G 01-2072 02/26/2016 PAYROLL
Search Name ICMA RETIREMENT 457
Search Name INVER GROVE LICENSE CENTER
E 01-4490-050-50
E 01-4490-070-70
E 15-4490-060-60
E 05-4490-105-15
E 01-4490-110-10
VEHICLE TABS
VEHICLE TABS
VEHICLE TABS
VEHICLE TABS
VEHICLE TABS
Search Name INVER GROVE LICENSE CENTER
Search Name METRO COUNCIL ENVIRONMENT SVC
R 15-3320
R 15-3615
E 15-4449-060-60
JAN 2016 SAC
JAN 2016 SAC
MARCH 2016 SEWER SER
Search Name METRO COUNCIL ENVIRONMENT SVC
Search Name NATIONWIDE RE i 1REMENT SOLUTION
G 01-2072 02/26/2016 PAYROLL
Search Name NATIONWIDE RETIREMENT SOLUTION
Search Name UNITED WAY OF ST. PAUL
G 01-2070 02/26/2016 PAYROLL
Search Name UNITED WAY OF ST. PAUL
Search Name XCEL ENERGY
E 01-4211-315-30
E 01-4211-300-50
E 01-4211-310-70
E 15-4212-400-60
E 01-4211-320-70
E 01-4211-420-50
E 08-4211-000-00
E 15-4211-310-60
E 15-4211-400-60
E 28-4211-000-00
E 01-4212-310-50
E 01-4212-310-70
E 01-4212-315-30
E 01-4212-320-70
E 08-4212-000-00
E 15-4212-310-60
E 01-4211-310-50
Search Name XCEL ENERGY
JAN 2016 EL. UTILITIES
JAN 2016 EL. UTILITIES
JAN 2016 EL. UTILITIES
JAN 2016 GAS UTILITIES
JAN 2016 EL. UTILITIES
JAN 2016 EL. UTILITIES
JAN 2016 EL. UTILITIES
JAN 2016 EL. UTILITIES
JAN 2016 EL. UTILITIES
JAN 2016 EL. UTILITIES
JAN 2016 GAS UTILITIES
JAN 2016 GAS UTILITIES
JAN 2016 GAS UTILITIES
JAN 2016 GAS UTILITIES
JAN 2016 GAS UTILITIES
JAN 2016 GAS UTILITIES
JAN 2016 EL. UTILITIES
Road & Bridges
Parks & Recreation
Utility Enterprise
Engineering Enterprise
Administration
Utility Enterprise
Fire
Road & Bridges
Parks & Recreation
Utility Enterprise
Parks & Recreation
Road & Bridges
Spec Fds
Utility Enterprise
Utility Enterprise
Spec Fds
Road & Bridges
Parks & Recreation
Fire
Parks & Recreation
Spec Fds
Utility Enterprise
Road & Bridges
$1,826.43
$1,826.43
$144.00
$112.00
$32.00
$48.00
$16.00
$352.00
$9,940.00
-$99.40
$97,033.67
$106,874.27
$50.00
$50.00
$64.00
$64.00
$790.83
$1,807.24
$355.04
$195.12
$495.51
$211.16
$3,022.72
$355.05
$885.13
$1,549.25
$728.62
$728.62
$952.03
$150.86
$1,117.09
$728.62
$355.04
$14,427.93
$123,594.63
Account
CITY OF MENDOTA HEIGHTS
Claims List
MANUAL CHECKS
03/09/16 MAN
Comments DEPT Descr
Amount
page 40
03/10/16 11:26 AM
Page 1
Search Name MENDOTA HEIGHTS GENERAL ACCT.
G 01-1021 REPLENISH PETTY CASH
Search Name MENDOTA HEIGHTS GENERAL ACCT.
Search Name SELECT ACCOUNT
G 01-2071
E 05-4131-105-15
E 01-4131-070-70
E 01-4131-050-50
E 01-4131-020-20
E 01-4131-110-10
Search Name SELECT ACCOUNT
Search Name US POSTAL SERVICE
G 01-1210
MAR 2016 HSA CONTRIBUTION
MAR 2016 HSA CONTRIBUTION
MAR 2016 HSA CONTRIBUTION
MAR 2016 HSA CONTRIBUTION
MAR 2016 HSA CONTRIBUTION
MAR 2016 HSA CONTRIBUTION
REPLENISH POSTAGE METER
Engineering Enterprise
Parks & Recreation
Road & Bridges
Police
Administration
$470.11
$470.11
$3,313.34
$475.00
$362.50
$279.16
$1,607A6
$362.50
$6,399.96
$1,200.00
Search Name US POSTAL SERVICE $1,200.00
$8,070.07
CITY OF MENDOTA HEIGHTS
Claims List
SYSTEM CHECKS
03/15/16 PAY
page 41
03/10/16 1:17 PM
Page 1
Account Comments DEPT Descr Amount
Search Name A TO Z HOME INSPECTION, LLC
E 01-4231-040-40 FEB 2016 HOME INSPECTIONS Code Enforcement/Ins $6,380.00
Search Name A TO Z HOME INSPECTION, LLC $6,380.00
Search Name Al JANITORIAL SUPPLY
E 15-4330-490-60 SEWER MAINTENANCE SUPPLIES Utility Enterprise $131.26
Search Name Al JANITORIAL SUPPLY $131.26
Search Name ACTION FLEET, INC.
E 01-4330-460-30 EQUIPMENT REPAIR - FIRE DEPT Fire $1,431.10
Search Name ACTION FLEET, INC. $1,431.10
Search Name ALL CITY ELEVATOR, INC.
E 08-4335-000-00 MAR 2016 ELEVATOR CONTRACT - CITY HALL Spec Fds $157.00
Search Name ALL CITY ELEVATOR, INC. $157.00
Search Name AMERICAN PRESSURE, INC.
E 01-4330-490-50 EQUIPMENT REPAIR PARTS - PW Road & Bridges $413.13
E 01-4330-490-70 EQUIPMENT REPAIR PARTS - PW Parks & Recreation $413.13
E 15-4330-490-60 EQUIPMENT REPAIR PARTS - PW Utility Enterprise $413.13
Search Name AMERICAN PRESSURE, INC. $1,239.39
Search Name AMERIPRIDE SERVICES
E 01-4335-310-70
E 15-4335-310-60
E 01-4335-310-50
E 15-4335-310-60
E 01-4335-310-70
E 01-4335-310-50
E 08-4335-000-00
Search Name AMERIPRIDE SERVICES
MAT SERVICE - PW GARAGE
MAT SERVICE - PW GARAGE
MAT SERVICE - PW GARAGE
MAT SERVICE - PW GARAGE
MAT SERVICE - PW GARAGE
MAT SERVICE - PW GARAGE
MAT SERVICE - CITY HALL
Parks & Recreation
Utility Enterprise
Road & Bridges
Utility Enterprise
Parks & Recreation
Road & Bridges
Spec Fds
$19.67
$19.67
$19.67
$22.08
$22.08
$22.09
$162.12
$287.38
Search Name APACHE GROUP
E 01-4305-030-30 SUPPLIES - FIRE DEPT Fire $106.03
Search Name APACHE GROUP $106.03
Search Name ASSURANT EMPLOYEE BENEFITS
E 01-4132-031-30 MAR 2016 LTD INSURANCE Fire $190.80
Search Name ASSURANT EMPLOYEE BENEFITS $190.80
Search Name AUTOZONE
E 15-4330-490-60
E 01-4330-490-50
E 45-4330-490-45
G 45-2035
E 45-4330-490-45
G 45-2035
Search Name AUTOZONE
EQUIPMENT REPAIR PARTS - SEWER
EQUIPMENT REPAIR PARTS - STREETS
EQUIPMENT REPAIR PARTS - PAR3
EQUIPMENT REPAIR PARTS - PAR3
EQUIPMENT REPAIR PARTS - PAR3
EQUIPMENT REPAIR PARTS - PAR3
Search Name BESSER WELDING & FABRICATION
E 15-4335-310-60
E 01-4305-050-50
E 01-4335-310-70
E 01-4335-310-50
BLDG REPAIRS - PW
OPERATING SUPPLIES - PW
BLDG REPAIRS - PW
BLDG REPAIRS - PW
Utility Enterprise
Road & Bridges
Golf Course
Golf Course
Utility Enterprise
Road & Bridges
Parks & Recreation
Road & Bridges
$39.99
$39.99
$32.62
-$2.10
$25.69
-$1.65
$134.54
$266.66
$45.08
$266.67
$266.67
CITY OF MENDOTA HEIGHTS
Claims List
SYSTEM CHECKS
03/15/16 PAY
page 42
03/10/16 1:17 PM
Page 2
Account Comments DEPT Descr Amount
E 01-4305-070-70 OPERATING SUPPLIES - PW
Parks & Recreation $45.07
Search Name BESSER WELDING & FABRICATION $890.15
Search Name C. DARLENE OEHLKE, CAP
E 01-4220-110-10 03/03/16 COUNCIL MEETING Administration $144.40
Search Name C. DARLENE OEHLKE, CAP $144.40
Search Name CARGILL INCORPORATED
E 01-4421-050-50
E 01-4421-050-50
E 01-4421-050-50
E 01-4421-050-50
ROAD SALT
ROAD SALT
ROAD SALT
ROAD SALT
E 01-4421-050-50 ROAD SALT
Road & Bridges
Road & Bridges
Road & Bridges
Road & Bridges
Road & Bridges
$3,747.18
$5,387.50
$5,573.30
$1,656.60
$1,692.54
Search Name CARGILL INCORPORATED $18,057.12
Search Name CDW GOVERNMENT, INC
E 01-4301-114-14
E 01-4301-114-14
E 01-4301-114-14
COMPUTER ACCESSORIES
COMPUTER ACCESSORIES
COMPUTER ACCESSORIES
Info Tech
Info Tech
Info Tech
$90.70
$102.43
$109.65
Search Name CDW GOVERNMENT, INC $302.78
Search Name 0 SPRAY, INC.
E 01-4330-490-70 EQUIPMENT REPAIR PARTS - PARKS Parks & Recreation $172.57
Search Name 0 SPRAY, INC. $172.57
Search Name COMCAST
E 45-4210-045-45 MARCH 2016 SERVICE - PAR3 Golf Course $207.98
Search Name COMCAST $207.98
Search Name COOL AIR MECHANICAL, INC.
E 08-4335-000-00 HVAC REPAIRS - CITY HALL Spec Fds $268.75
Search Name COOL AIR MECHANICAL, INC. $268.75
Search Name CRAWFORD DOOR
E 01-4305-030-30 REMOTES - FIRE HALL Fire $80.00
Search Name CRAWFORD DOOR $80.00
Search Name CUMMINS NORTH CENTRAL
E 01-4330-460-30 EQUIPMENT REPAIR - FIRE DEPT Fire $100.00
Search Name CUMMINS NORTH CENTRAL $100.00
Search Name DAKOTA COMMUNICATIONS CENTER
E 01-4275-020-20 APRIL 2016 DCC FEE Police $17,655.00
E 01-4275-030-30 APRIL 2016 DCC FEE Fire $616.00
Search Name DAKOTA COMMUNICATIONS CENTER $18,271.00
Search Name DAKOTA COUNTY CHIEFS OF POLICE
E 01-4404-020-20 2016 MEMBERSHIP Police $400.00
Search Name DAKOTA COUNTY CHIEFS OF POLICE $400.00
Search Name DAKOTA COUNTY TREAS-AUDITOR
E 01-4220-050-50
E 01-4268-070-70
E 15-4490-060-60
G 01-1215
3 -YEAR OBSTRUCTION PERMIT
3 -YEAR OBSTRUCTION PERMIT
3 -YEAR OBSTRUCTION PERMIT
3 -YEAR OBSTRUCTION PERMIT
Road & Bridges
Parks & Recreation
Utility Enterprise
$13.89
$13.89
$13.89
$55.56
CITY OF MENDOTA HEIGHTS
Claims List
SYSTEM CHECKS
03/15/16 PAY
Account Comments
DEPT Descr
page 43
03/10/16 1:17 PM
Page 3
Amount
G 15-1215 3 -YEAR OBSTRUCTION PERMIT
Search Name DAKOTA COUNTY TREAS-AUDITOR
Search Name DESIGNER SIGN SYSTEMS
E 01-4490-080-80 NAME PLATE - B. PETSCHEL
Search Name DESIGNER SIGN SYSTEMS
Search Name DUGGAN, TIM
E 45-4500-045-45
G 45-2035
Search Name DUGGAN, TIM
Search Name ECKBERG LAMMERS
E 01-4220-120-10
E 01-4220-120-80
E 01-4220-120-20
E 01-4220-120-40
E 23-4490-000-00
E 01-4220-120-50
E 01-4221-120-10
Search Name ECKBERG LAMMERS
TREE REMOVAL - PAR3
TREE REMOVAL - PAR3
FEB 2016 LEGAL SERVICES
FEB 2016 LEGAL SERVICES
FEB 2016 LEGAL SERVICES
FEB 2016 LEGAL SERVICES
FEB 2016 LEGAL SERVICES
FEB 2016 LEGAL SERVICES
FEB 2016 LEGAL SERVICES - COUNCIL MTGS
Search Name EHLERS & ASSOCIATES INC
E 01-4220-110-10 FINANCIAL MGMT PLAN
Search Name EHLERS & ASSOCIATES INC
Search Name FACTORY MOTOR PARTS
E 01-4330-440-20 EQUIPMENT REPAIR PARTS - PD
Search Name FACTORY MOTOR PARTS
Search Name FASTENAL INDUSTRIAL & CONSTR
E 15-4305-060-60 OPERATING SUPPLIES - SEWER
Search Name FASTENAL INDUSTRIAL & CONSTR
Search Name FLAGSHIP RECREATION
E 01-4330-215-70 PARK EQUIPMENT SUPPLIES
E 82-4460-791-00 VICTORIA RD SOUTH PROJECT
Search Name FLAGSHIP RECREATION
Search Name FLEETPRIDE
E 45-4330-490-45
E 15-4330-490-60
E 01-4330-490-50
G 45-2035
E 15-4330-490-60
Search Name FLEETPRIDE
EQUIPMENT REPAIR PARTS - PAR3
EQUIPMENT REPAIR PARTS - SEWER
EQUIPMENT REPAIR PARTS - STREETS
EQUIPMENT REPAIR PARTS - PAR3
EQUIPMENT REPAIR PARTS - SEWER
Search Name FOREMOST PROMOTIONS
E 01-4490-020-20 CRIME PREVENTION SUPPLIES
Search Name FOREMOST PROMOTIONS
Search Name GOPHER STATE ONE CALL
E 01-4210-040-40 FEB 2016 SERVICE
Planning
Golf Course
Administration
Planning
Police
Code Enforcement/Ins
Spec Fds
Road & Bridges
Administration
Administration
Police
Utility Enterprise
Parks & Recreation
Spec Fds
Golf Course
Utility Enterprise
Road & Bridges
Utility Enterprise
Police $434.70
$434.70
Code Enforcement/Ins $107.30
$27.77
$125.00
$53.55
$53.55
$2,137.50
-$137.50
$2,000.00
$787.50
$375.00
$300.00
$675.00
$825.00
$150.00
$400.00
$3,512.50
$8,740.00
$8,740.00
$89.56
$89.56
$36.05
$36.05
$2,790.00
$690.00
$3,480.00
$64.49
-$26.88
$222.16
-$4.15
$52.65
$308.27
Search Name GOPHER STATE ONE CALL $107.30
Account
CITY OF MENDOTA HEIGHTS
Claims List
SYSTEM CHECKS
03/15/16 PAY
Comments
DEPT Descr
page 44
03/10/16 1:17 PM
Page 4
Amount
Search Name HANCO CORPORATION
E 01-4330-490-70
E 01-4330-490-70
E 45-4330-490-45
G 45-2035
Search Name HANCO CORPORATION
Search Name HOSE INC
E 01-4330-490-70
E 01-4330-490-70
Search Name HOSE INC
EQUIPMENT REPAIR PARTS - PARKS
EQUIPMENT REPAIR PARTS - PARKS
EQUIPMENT REPAIR PARTS - PAR3
EQUIPMENT REPAIR PARTS - PAR3
EQUIPMENT REPAIR PARTS - PARKS
EQUIPMENT REPAIR PARTS - PARKS
Search Name INNOVATIVE OFFICE SOLUTIONS
E 01-4300-110-10
E 01-4300-020-20
E 08-4335-000-00
OFFICE SUPPLIES - ADMIN
OFFICE SUPPLIES - PD
CITY HALL SUPPLIES
Search Name INNOVATIVE OFFICE SOLUTIONS
Search Name INTERSTATE BATTERY SYSTEM
E 45-4330-490-45 BATTERY - PAR3
G 45-2035 BATTERY - PAR3
Search Name INTERSTATE BATTERY SYSTEM
Search Name INVER GROVE FORD
E 01-4330-490-50
Search Name INVER GROVE FORD
EQUIPMENT REPAIR PARTS - STREETS
Search Name IRON MOUNTAIN RECORDS MGMT
E 01-4490-110-10 FEB 2016 SHREDDING
E 01-4490-020-20 FEB 2016 SHREDDING
Search Name IRON MOUNTAIN RECORDS MGMT
Search Name JANI-KING OF MINNESOTA, INC.
E 01-4335-315-30
E 01-4335-310-50
E 01-4335-310-70
E 15-4335-310-60
E 01-4331-020-20
MAR 2016 SERVICE - PWFIRE HALL
MAR 2016 SERVICE - PW
MAR 2016 SERVICE - PW
MAR 2016 SERVICE - PW
MAR 2016 SERVICE - PD
Search Name JANI-KING OF MINNESOTA, INC.
Search Name KAT KEYS
E 08-4335-000-00 BLDG MAINTENANCE - CITY HALL
Search Name KAT KEYS
Search Name LAWSON PRODUCTS, INC
E 01-4305-070-70
E 15-4305-060-60
E 01-4305-050-50
OPERATING SUPPLIES - PARKS
OPERATING SUPPLIES - SHOP
OPERATING SUPPLIES - SHOP
E 01-4305-070-70 OPERATING SUPPLIES - SHOP
Search Name LAWSON PRODUCTS, INC
Search Name LEGEND TECHNICAL SERVICES, INC
E 08-4335-000-00 BLDG REPAIRS - CITY HALL
Search Name LEGEND TECHNICAL SERVICES, INC
Parks & Recreation
Parks & Recreation
Golf Course
Parks & Recreation
Parks & Recreation
Administration
Police
Spec Fds
Golf Course
Road & Bridges
Administration
Police
Fire
Road & Bridges
Parks & Recreation
Utility Enterprise
Police
Spec Fds
Parks & Recreation
Utility Enterprise
Road & Bridges
Parks & Recreation
$28.53
$52.88
$48.21
-$3.10
$126.52
$26.99
$43.31
$70.30
$51.89
$27.66
$18.37
$97.92
$130.33
-$8.38
$121.95
$24.07
$24.07
$12.35
$37.05
$49.40
$200.00
$66.67
$66.67
$66.66
$785.46
$1,185.46
$255.00
$255.00
$14.52
$91.89
$91.88
$91.88
$290.17
Spec Fds $1,209.18
$1,209.18
CITY OF MENDOTA HEIGHTS
Claims List
SYSTEM CHECKS
03/15/16 PAY
page 45
03/10/16 1:17 PM
Page 5
Account Comments DEPT Descr Amount
Search Name LILLIE SUBURBAN NEWS
E 01-4240-080-80 FEB 2016 PUBLICATIONS - PLANNING NOTICE Planning $24.30
E 01-4240-080-80 FEB 2016 PUBLICATIONS - ORDINANCES Planning $453.60
E 27-4240-794-00 FEB 2016 PUBLICATIONS - ORDINANCE Spec Fds $36.45
Search Name LILLIE SUBURBAN NEWS $514.35
Search Name LILYDALE, CITY OF
G 01-2035
Search Name LILYDALE, CITY OF
FALSE ALARM BILLING $50.00
Search Name LOWER MISSISSIPPI RIVER WMO
E 29-4404-000-00 2016 MEMBERSHIP
Search Name LOWER MISSISSIPPI RIVER WMO
Search Name MAZZITELLO, JOHN
E 05-4415-105-15
Search Name MAZZITELLO, JOHN
Search Name MENARDS
FEB 2016 MILEAGE
Spec Fds
$50.00
$13,878.70
$13,878.70
Engineering Enterprise $79.92
$79.92
E 01-4330-215-70 PICNIC TABLES SUPPLIES - PARKS Parks & Recreation $316.78
E 01-4330-215-70 PICNIC TABLES SUPPLIES - PARKS Parks & Recreation $149.48
E 01-4330-460-30 EQUIPMENT REPAIR PARTS - FIRE DEPT Fire $41.94
E 08-4335-000-00 BLDG MAINT. SUPPLIES - CITY HALL Spec Fds $31.56
Search Name MENARDS $539.76
Search Name MENDEZ, JOHN
E 01-4400-030-30
Search Name MENDEZ, JOHN
TRAVEL EXPENSE REIMB. - J. MENDEZ
Fire $31.22
$31.22
Search Name METRO COUNCIL ENVIRONMENT SVC
E 15-4449-060-60 APRIL 2016 SEWER CHARGES Utility Enterprise $97,033.67
R 15-3320 FEB 2016 SAC $2,485.00
R 15-3615 FEB 2016 SAC -$24.85
Search Name METRO COUNCIL ENVIRONMENT SVC $99,493.82
Search Name MINNESOTA PUMP WORKS
E 15-4330-400-60 LIFT STATION REPAIRS Utility Enterprise $6,008.12
Search Name MINNESOTA PUMP WORKS $6,008.12
Search Name MITCHELL1
E 01-4301-030-30 MARCH 2016 SERVICE Fire $169.00
Search Name MITCHELL1
Search Name MN BENEFIT ASSN
G 01-2071
G 01-2071
Search Name MN BENEFIT ASSN
$169.00
FEB 2016 PREMIUM $15.79
MAR 2016 PREMIUM $15.79
Search Name MN TEAMSTERS LOCAL 320
G 01-2075 MAR 2016 UNION DUES
Search Name MN TEAMSTERS LOCAL 320
Search Name MN TRUCKING ASSOCIATION
E 01-4305-050-50 OPERATING SUPPLIES - STREETS
Search Name MN TRUCKING ASSOCIATION
$31.58
$645.00
$645.00
Road & Bridges $118.00
$118.00
CITY OF MENDOTA HEIGHTS
Claims List
SYSTEM CHECKS
03/15/16 PAY
Account Comments
DEPT Descr
page 46
03/10/16 1:17 PM
Page 6
Amount
Search Name NCPERS GROUP LIFE INS.
G 01-2071 MARCH 2016 PREMIUM
Search Name NCPERS GROUP LIFE INS.
Search Name NITTI SANITATION INC
E 45-4280-045-45 RECYCLING - PAR3
Search Name NITTI SANITATION INC
Search Name NYSTROM PUBLISHING CO., INC.
E 01-4268-650-70
E 15-4268-650-60
E 45-4268-650-45
E 01-4268-650-85
E 01-4268-650-10
WINTER 2016 NEWSLETTER
WINTER 2016 NEWSLETTER
WINTER 2016 NEWSLETTER
WINTER 2016 NEWSLETTER
WINTER 2016 NEWSLETTER
Search Name NYSTROM PUBLISHING CO., INC.
Search Name OFFICE DEPOT
E 01-4300-020-20
E 01-4300-020-20
E 01-4300-050-50
E 01-4300-070-70
E 01-4305-070-70
Search Name OFFICE DEPOT
Search Name OXYGEN SERVICE CO
E 01-4200-610-70
E 01-4200-610-50
E 15-4200-610-60
Search Name OXYGEN SERVICE CO
OFFICE SUPPLIES - PD
OFFICE SUPPLIES - PD
OFFICE SUPPLIES - PW
OFFICE SUPPLIES - PW
OPERATING SUPPLIES - PW
CYLINDER RENT - PW
CYLINDER RENT - PW
CYLINDER RENT - PW
Search Name RUPP, ANDERSON, SQUIRES & WALD
E 01-4220-120-20 JAN 2016 LEGAL SERVICES
Search Name RUPP, ANDERSON, SQUIRES & WALD
Search Name SAFE -FAST, INC.
E 01-4305-050-50
Search Name SAFE -FAST, INC.
Search Name SAVATREE
E 01-4330-215-70
E 01-4330-215-70
Search Name SAVATREE
Search Name SELECT ACCOUNT
E 01-4220-110-10
E 01-4220-020-20
E 01-4220-050-50
E 01-4220-070-70
E 01-4220-080-80
E 05-4220-105-15
E 15-4220-060-60
Search Name SELECT ACCOUNT
Search Name SNAP ON TOOLS
SAFETY SUPPLIES - STREETS
TREE CARE - PARKS
TREE CARE - PARKS
MAR 2016 HSA PARTICIPANT FEE
MAR 2016 HSA PARTICIPANT FEE
MAR 2016 HSA PARTICIPANT FEE
MAR 2016 HSA PARTICIPANT FEE
MAR 2016 HSA PARTICIPANT FEE
MAR 2016 HSA PARTICIPANT FEE
MAR 2016 HSA PARTICIPANT FEE
Golf Course
Parks & Recreation
Utility Enterprise
Golf Course
Recycling
Administration
Police
Police
Road & Bridges
Parks & Recreation
Parks & Recreation
Parks & Recreation
Road & Bridges
Utility Enterprise
Police
Road & Bridges
Parks & Recreation
Parks & Recreation
Administration
Police
Road & Bridges
Parks & Recreation
Planning
Engineering Enterprise
Utility Enterprise
$80.00
$80.00
$19.96
$19.96
$616.17
$135.56
$98.59
$172.53
$1,971.75
$2,994.60
-$22.10
$163.76
$31.28
$31.28
$31.99
$236.21
$30.84
$30.84
$30.83
$92.51
$264.60
$264.60
$139.81
$139.81
$3,050.00
$1,050.00
$4,100.00
$12.04
$20.44
$3.31
$1.20
$2.11
$2.40
$4.22
$45.72
CITY OF MENDOTA HEIGHTS
Claims List
SYSTEM CHECKS
03/15/16 PAY
Account Comments
DEPT Descr
page 47
03/10/16 1:17 PM
Page 7
Amount
E 01-4410-050-50
E 01-4410-070-70
E 15-4410-060-60
Search Name SNAP ON TOOLS
Search Name ST. PAUL, CITY OF
E 01-4400-020-20
Search Name ST. PAUL, CITY OF
Search Name STOPSTICK, LTD
E 01-4305-020-20
Search Name STOPSTICK, LTD
CLOTHING - PW
CLOTHING - PW
CLOTHING - PW
TRAINING - P. FLEMING
OPERATING SUPPLIES - PD
Search Name SW/WC SERVICE COOPERATIVES
E 01-4131-110-10
E 01-4131-020-20
E 01-4131-050-50
E 01-4131-070-70
APR 2016 HEALTH INSURANCE
APR 2016 HEALTH INSURANCE
APR 2016 HEALTH INSURANCE
APR 2016 HEALTH INSURANCE
E 05-4131-105-15 APR 2016 HEALTH INSURANCE
G 01-2071 APR 2016 HEALTH INSURANCE
G 01-2074 APR 2016 HEALTH INSURANCE
Search Name SW/WC SERVICE COOPERATIVES
Search Name TOTAL TOOL
E 01-4305-050-50 OPERATING SUPPLIES - STREETS
Search Name TOTAL TOOL
Search Name TRACTOR SUPPLY
E 01-4330-490-70
E 01-4330-490-70
Search Name TRACTOR SUPPLY
Search Name TRI STATE BOBCAT
E 01-4330-490-50
E 01-4330-490-50
Search Name TRI STATE BOBCAT
Search Name TUFF, SCOTT
E 01-4435-200-70
Search Name TUFF, SCOTT
EQUIPMENT REPAIR PARTS - PARKS
EQUIPMENT REPAIR PARTS - PARKS
EQUIPMENT REPAIR PARTS - STREETS
EQUIPMENT REPAIR PARTS - STREETS
DJ - PARK CELEBRATION
Search Name UNIFORMS UNLIMITED
E 01-4306-020-20 UNIFORM - S. HOECHST
Search Name UNIFORMS UNLIMITED
Search Name UNLIMITED SUPPLIES INC
E 01-4305-050-50
E 01-4305-070-70
E 15-4305-060-60
E 01-4305-050-50
E 01-4305-050-50
E 15-4305-060-60
E 01-4305-070-70
E 01-4305-070-70
E 15-4305-060-60
OPERATING SUPPLIES - SHOP
OPERATING SUPPLIES - SHOP
OPERATING SUPPLIES - SHOP
OPERATING SUPPLIES - SHOP
OPERATING SUPPLIES - SHOP
OPERATING SUPPLIES - SHOP
OPERATING SUPPLIES - SHOP
OPERATING SUPPLIES - SHOP
OPERATING SUPPLIES - SHOP
Road & Bridges
Parks & Recreation
Utility Enterprise
Police
Police
Administration
Police
Road & Bridges
Parks & Recreation
Engineering Enterprise
Road & Bridges
Parks & Recreation
Parks & Recreation
Road & Bridges
Road & Bridges
Parks & Recreation
Police
Road & Bridges
Parks & Recreation
Utility Enterprise
Road & Bridges
Road & Bridges
Utility Enterprise
Parks & Recreation
Parks & Recreation
Utility Enterprise
$34.34
$34.33
$34.33
$103.00
$149.00
$149.00
$292.00
$292.00
$4,894.00
$14,977.00
$4,958.00
$1,280.00
$2,528.00
$3,167.50
$3,155.00
$34,959.50
$166.98
$166.98
-$9.99
$81.91
$71.92
$72.00
$44.75
$116.75
$350.00
$350.00
$155.96
$155.96
$58.50
$58.50
$141.66
$141.67
$279.50
$279.50
$279.50
$141.67
$58.50
CITY OF MENDOTA HEIGHTS
Claims List
SYSTEM CHECKS
03/15/16 PAY
Account Comments
DEPT Descr
page 48
03/10/16 1:17 PM
Page 8
Amount
Search Name UNLIMITED SUPPLIES INC
Search Name VERIZON WIRELESS
E 01-4210-030-30
E 15-4210-060-60
E 01-4210-070-70
E 01-4210-050-50
E 01-4210-114-14
E 01-4210-020-20
E 05-4210-105-15
E 01-4210-110-10
E 01-4223-020-20
Search Name VERIZON WIRELESS
Search Name WASTE MANAGEMENT
E 01-4280-310-70
E 01-4280-310-50
E 15-4280-310-60
E 08-4280-000-00
Search Name WASTE MANAGEMENT
Search Name WINGE, DAVID
E 01-4400-030-30
Search Name WINGE, DAVID
Search Name XCEL ENERGY
E 15-4211-400-60
E 01-4211-320-70
E 45-4211-046-45
E 45-4212-046-45
E 45-4211-047-45
E 15-4212-400-60
E 15-4212-310-60
E 08-4212-000-00
E 01-4212-320-70
E 01-4212-315-30
E 01-4212-310-70
E 28-4211-000-00
E 15-4211-310-60
E 08-4211-000-00
E 01-4211-420-50
E 01-4211-320-70
E 01-4211-315-30
E 01-4211-310-70
E 01-4211-310-50
E 01-4211-300-50
E 01-4212-310-50
Search Name XCEL ENERGY
FEB 2016 CELL SERVICE
FEB 2016 CELL SERVICE
FEB 2016 CELL SERVICE
FEB 2016 CELL SERVICE
FEB 2016 CELL SERVICE
FEB 2016 CELL SERVICE
FEB 2016 CELL SERVICE
FEB 2016 CELL SERVICE
FEB 2016 CELL SERVICE
FEB 2016 SERVICE - PW
FEB 2016 SERVICE - PW
FEB 2016 SERVICE - PW
FEB 2016 SERVICE - CITY HALL
TRAVEL EXPENSE REIMB. - D. WINGE
FEB 2016 EL. UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 GAS UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 GAS UTILITIES
FEB 2016 GAS UTILITIES
FEB 2016 GAS UTILITIES
FEB 2016 GAS UTILITIES
FEB 2016 GAS UTILITIES
FEB 2016 GAS UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 EL. UTILITIES
FEB 2016 GAS UTILITIES
Fire
Utility Enterprise
Parks & Recreation
Road & Bridges
Info Tech
Police
Engineering Enterprise
Administration
Police
Parks & Recreation
Road & Bridges
Utility Enterprise
Spec Fds
Fire
$1,439.00
$306.08
$51.42
$51.42
$289.60
$191.46
$884.14
$154.26
$114.78
$245.07
$2,288.23
$57.95
$57.95
$57.94
$223.40
$397.24
$41.51
$41.51
Utility Enterprise $834.77
Parks & Recreation $25.71
Golf Course $29.35
Golf Course $67.65
Golf Course $150.28
Utility Enterprise $164.86
Utility Enterprise $570.28
Spec Fds $911.47
Parks & Recreation $102.17
Fire $775.04
Parks & Recreation $570.27
Spec Fds $1,163.46
Utility Enterprise $369.72
Spec Fds $2,974.88
Road & Bridges $202.52
Parks & Recreation $580.65
Fire $758.24
Parks & Recreation $369.72
Road & Bridges $369.72
Road & Bridges $1,795.55
Road & Bridges $570.27
$13,356.58
$254,689.70
page 49
City of flienbuta 9eig0t5
?aECOglllilDri
WHEREAS, The Prudential Spirit of Community Awards nationally has recognized
youth for their volunteer community service for over 20 years; and
WHEREAS, Mendota Heights resident Jane Hulse, a student at Trinity School at the
River Ridge, located in Eagan Minnesota, was recognized as a 2016 Distinguished
Finalist by The Prudential Spirit of Community Awards; and
WHEREAS, Jane authored a cookbook entitled A Gratuitous Guild to Good Food and
Simple Science, and was written to promote proper nutrition for teens and
pre -teen girls, and
WHEREAS, copies of Jane's cookbook have been provided at no cost to coaches,
healthcare providers, and eating disorder clinics, and is also available for free through a
website operated by Jane; and
WHEREAS, Jane volunteers with Renewing the Countryside and is a semifinalist for
the 2016 National Merit Scholarship Program; and
WHEREAS, Jane serves as a positive role model to youth through her high level of
personal achievement, leadership, and community service, and has made the City of
Mendota Heights, Minnesota very proud.
NOW THEREFORE BE IT HEREBY RESOLVED that the City Council of the City
of Mendota Heights hereby recognizes Jane Hulse for her outstanding achievements, and
wishes her the best of luck in her future endeavors.
,flu lvituess' lVfjereofnate
fjereuuto s'et mp fjaub ant
cause tie seat to be affixeb
J 1apur
Mate fRareb 15, 2016
iv mR CITY OF
MENDOTA HEIGHTS
page 50
1101 Victoria Curve 1 Mendota Heights, MN 55118
651.452.1850 phone 1 651.452.8940 fax
www.mendota-heights.com
MEETING DATE: March 3, 2016
TO: Mayor, City Council and City Administrator
FROM: Tamara Schutta, Assistant to the City Administrator/HR Coordinator
SUBJECT: Public Hearing to Consider CenturyLink Cable Television Franchise
Ordinance and Agreement
BACKGROUND
The Northern Dakota County Cable Communications Commission ("NDC4") manages the
City's cable franchises on behalf of City. On February 23, 2016, NDC4 adopted Resolution 2-
23-16 recommending that each member city grant a cable communications franchise to
CenturyLink. Having a franchise agreement with CenturyLink would promote a competitive
market. NDC4 Executive Director Jodie Miller and Brian Grogan, legal counsel for NDC4
provided a presentation of the draft ordinance and agreement during the March 3, 2016 Council
meeting.
The agreement with CenturyLink has a proposed term of five years. The City has unilateral right
to extend the agreement five years. The term is tied to system build out, allowing the City to
consider if CenturyLink's cable system is "substantially constructed." Based on the proposed
franchise agreement, CenturyLink will serve a minimum of 15% of living units in the City within
2 years. Based on NDC4's presentation, CenturyLink has shown it is capable of serving 60% of
households. If the City determines the system is not built out substantially, the franchise may not
be renewed.
Additional highlights of the proposed franchise agreement include CenturyLink providing two
NDC4 Mosaic Channels to access 7 PEG channels and 25 hours of Video on Demand.
CenturyLink will also provide all metro PEG channels to subscribers, totaling over 150 PEG
channels.
In order for the City to grant a cable franchise by ordinance, a public hearing must be conducted.
After the public hearing, Council will need to take action to approve Resolution 2016-13,
regarding an Ordinance Granting a Competitive Cable Franchise to Qwest Broadband Services,
Inc., d/b/a CenturyLink, and adopt the Findings of Facts and CenturyLink Cable Franchise
Ordinance 493.
BUDGET IMPACT
CenturyLink's Franchise Fee will be equal to five percent (5%) of its quarterly Gross Revenues.
CenturyLink will also pay a PEG fee of $1.77 per subscriber. These amount are the same as
Comcast.
page 51
ATTACHMENTS
• Resolution 2016-13, Regarding An Ordinance Granting a Competitive Cable Franchise to
Qwest Broadband Services, Inc., d/b/a CenturyLink, Finds of Facts.
• Draft Ordinance 493 Cable Television Franchise Ordinance with CenturyLink
• Ordinance Summary
STAFF RECOMMENDATION
Staff recommends that the Mendota Heights City Council open and conduct the public hearing
on the proposed Ordinance 493, granting CenturyLink a cable television franchise agreement.
After the public hearing has been conducted, staff recommends that the City Council adopt
Resolution 2016-13, containing the Findings of Facts; and Ordinance 493, granting a non-
exclusive Cable Television Franchise to CenturyLink.
Staff also recommends that the City Council adopt a summary of Ordinance 493 for publication.
ACTION REQUIRED
The City Council should hold the Public Hearing.
After the Hearing, if City Council concurs with
following actions:
1. Adopt Resolution 2016-13 containing the
Granting a Competitive Cable Franchise
CenturyLink;
staff's recommendations, it should take the
Findings of Facts, Regarding an Ordinance
to Qwest Broadband Services, Inc.; d/b/a
2. Pass Ordinance 493, Granting a Non -Exclusive Cable Television Franchise Ordinance for
Qwest Broadband Services, Ic, d/b/a CenturyLink Inc.
These actions requires a simple majority vote.
3. Adopt a Summary of Ordinance 493 for publication.
This action requires a 4/5 majority vote.
page 52
CITY OF MENDOTA HEIGHTS, MINNESOTA
RESOLUTION NO. 2016-23
Regarding an Ordinance Granting a Competitive Cable Franchise
to Qwest Broadband Services, Inc., d/b/a CenturyLink
RECITALS:
WHEREAS, the City of Mendota Heights, Minnesota makes the following
FINDINGS OF FACT:
1. In February 2015, Qwest Broadband Services, Inc., d/b/a CenturyLink, Inc.
("CenturyLink") requested that the City of Mendota Heights, Minnesota ("City")
initiate proceedings to consider awarding it a franchise to provide cable
communications services in the City ("Service Territory").
2. Comcast of St. Paul, Inc. ("Comcast") holds a non-exclusive cable communications
franchise for the Service Territory ("Comcast Franchise").
3. The Comcast Franchise, which the City last renewed on or about April 1, 2000, is
currently the only cable communications franchise for the Service Territory.
4. The monopoly held by a sole cable communication provider in a particular market
is a barrier to entry for additional providers, which does not have a captive market
but must instead "win" every subscriber.1
5. The presence of a second cable operator in a market improves the quality of service
offerings and drives down prices by approximately fifteen percent (15%).2
6. On March 8, 2015 and March 15, 2015, the Northern Dakota County Cable
Communications Commission ("Commission"), which the City is a member of,
published a Notice of Intent to Franchise a Cable Communications System
("Notice") in the South-West Review, a newspaper of general circulation in the
Service Territory.
7. The Notice indicated that the Commission was soliciting franchise applications and
provided information regarding the application process, including that applications
were required to be submitted on or before March 31, 2015 and that a public
hearing to hear proposals from applicants would be held by the Commission on
April 15, 2015 at 7:00 PM.
8. The Commission also mailed copies of the Notice and application materials to
CenturyLink and Comcast.3
1 In the Matter of Section 621(a)(1) of the Cable Communications Policy Act of 1984 as amended by the
Cable Television Consumer Protection and Competition Act of 1992, Report and Order and Further Notice of
Proposed Rulemaking, MB Docket No. 05-311, at ¶ 138 (Rel. Mar. 5, 2007) ("621 Order").
2 Id. at ¶¶ 2, 50.
page 53
9. On March 31, 2015, the Commission received an application from CenturyLink
(the "CenturyLink Application"). The Commission did not receive any other
applications.
10. As provided by the Notice, on April 15, 2015 the Commission held a public hearing
during the Commission's regularly scheduled meeting to consider CenturyLink's
application and qualifications.
11. On April 15, 2015, Comcast submitted a letter to the City setting forth its position
regarding the CenturyLink Application ("Comcast Letter").4
12. The Comcast Letter expresses concern about CenturyLink's proposal and how
CenturyLink will be held to particular provisions of the existing Comcast
Franchise.5
13. The Comcast Letter also summarizes Comcast's position regarding build -out
requirements and other proposed terms related to competition in the cable
industry.6
14. During the April 15, 2015 hearing, CenturyLink presented its proposal and all other
interested parties were provided an opportunity to speak and present information to
the Commission regarding the CenturyLink Application.
15. Following the hearing, the law firm of Moss & Barnett, a Professional Association
prepared a report, dated May 29, 2015 ("Franchise Report"), reviewing and
analyzing the applicable franchising procedures, the CenturyLink Application and
other information provided by CenturyLink in connection with the April 15, 2015
public hearing.
16. The Franchise Report identifies and discusses federal and state legal requirements
relevant to the City's consideration of the CenturyLink Application, including laws
pertaining to franchising procedures and competition between providers.8
17. The Franchise Report also analyzes information provided by CenturyLink to
establish its qualifications to operate a cable communications franchise in the
Service Territory.9
3 Notice by the Northern Dakota County Cable Communications Commission of Its Intent to Consider An
Application for a Franchise and Request for Proposals - Official Application Form.
4See, April 15, 2015 letter from Emmett V. Coleman to Jodie Miller, Executive Director for the Commission,
regarding CenturyLink Video Franchise Application.
5 Id. at 2.
6 Id. at 1-2.
Report to the Northern Dakota County Cable Communications Commission Regarding Qwest Broadband
Services, Inc. d/b/a/ CenturyLink — Proposal for a Cable Communication Franchise, May 29, 2015.
8 Franchise Report at 2-9.
91d. at 11-12.
page 54
18. At its meeting on June 3, 2015, the Commission considered the Franchise Report,
along with the information and documentation it had received regarding the
CenturyLink Application, and adopted a resolution finding and concluding that the
CenturyLink Application complied with the requirements of Minn. Stat. § 238.081
and that CenturyLink is legally, technically, and financially qualified to operate a
cable communications system within the Service Territory.
19. As a result of its determination that CenturyLink complied with all application
requirements and is a qualified applicant, the Commission authorized Commission
staff to negotiate with CenturyLink to attempt to reach mutually acceptable terms
for such a franchise.
20. On February 23, 2016 the Commission considered and recommended an ordinance
granting a cable communications franchise to CenturyLink and authorized
Commission staff to provide the recommended franchise to the Commission's
Member Cities for consideration and action.
21. In Minnesota, both State and federal law govern the terms and conditions of an
additional cable communications franchise in an already -franchised service area.10
22. The franchising authority may not grant an exclusive franchise or unreasonably
refuse to award an additional competitive franchise.11
23. The franchising authority must allow an applicant reasonable time to become
capable of providing cable service to all households in the service area.12
24. The franchising authority may grant an additional franchise in an
already -franchised service area if the terms and conditions of the additional
franchise are not "more favorable or less burdensome than those in the existing
franchise" regarding the area served, the PEG access requirements, and franchise
fees.13
25. The additional franchise must also include, among other things, "a schedule
showing ... that the construction throughout the authorized franchise area must be
substantially completed within five years of the granting of the franchise."14
26. In order to ensure that any additional franchise granted to CenturyLink would
contain substantially similar service area, PEG access requirements, and franchise
fees to the Comcast Franchise, the Commission used the Comcast Franchise as the
base document for its negotiations.
10 See 47 U.S.C. § 541(a)(1); Minn. Stat. §§ 238.08, .084; see also Franchise Report at 2-8.
11 47 U.S.C. § 541(a)(1).
12 47 U.S.C. § 541(a)(4).
13 Minn. Stat. § 238.08, subd. 1(b).
14 Minn. Stat. § 238.84, subd. 1(m).
page 55
27. On February 28, 2016 the City Council gave notice that it intended to introduce an
ordinance granting a cable communications franchise to CenturyLink.
28. Copies of the CenturyLink Franchise were made available to the public on
February 29, 2016, and to Comcast, on February 26, 2016.
29. On March 15, 2016, the City Council introduced Ordinance No. 493 an Ordinance
of the City of Mendota Heights, Minnesota Granting a Cable Communications
Franchise to Qwest Broadband Services, Inc. d/b/a CenturyLink ("CenturyLink
Franchise").
30. The CenturyLink Franchise encompasses the same Service Territory encompassed
by the Comcast Franchise.15
31. The franchise fee percentage required by the CenturyLink Franchise is identical to
that required by the Comcast Franchise.16
32. The PEG access requirements in the CenturyLink Franchise mandate certain
obligations, such as HD channel capacity for all PEG channels that go beyond the
commitments made in the Comcast franchise.' 7
33. The City recognizes that CenturyLink, which currently offers no cable
communications services in the Service Territory, cannot justify a large initial
deployment because it "realistically cannot count on acquiring a share of the
market similar to Comcast's share ... [and] must begin offering service within a
smaller area to determine whether it can reasonably ensure a return on its
investment before expanding."'s
34. The CenturyLink Franchise therefore requires CenturyLink's initial deployment to
be capable of serving at least fifteen percent (15%) of the living units in the Service
Territory within two (2) years. CenturyLink is further required to commit a
significant portion of its initial investment to areas below the median income within
the City.19
35. The CenturyLink Franchise permits the City to monitor CenturyLink's progress
and compliance with build -out requirements via quarterly meeting and accelerates
the build -out schedule if CenturyLink has market success, with the goal and
expectation that build -out will be substantially complete before the CenturyLink
Franchise's five (5) year term expires.20
15 CenturyLink Franchise §2.7; Comcast Franchise § 2.8.
16 CenturyLink Franchise §8.3; Comcast Franchise § 8.3.
17 CenturyLink Franchise §6 and Exhibit A; Comcast Franchise § 6 and Exhibit B.
18 621 Order at ¶ 35.
19 CenturyLink Franchise §2.8.
20 CenturyLink Franchise §2.9- 2.10.
page 56
36. During its regularly scheduled meeting on March 15, 2016, the City Council held a
public hearing at which all interested parties are provided an opportunity to speak
and present information regarding the proposed CenturyLink Franchise.
WHEREAS, the City has considered these facts and the cable -related needs and interests
of the community:
NOW THEREFORE, the City Council for the City of Mendota Heights, Minnesota
hereby resolves as follows:
1. The foregoing findings are adopted as the official findings of the City Council and
made a part of the official record.
2. The City has authority to adopt an ordinance granting a cable communications
franchise to CenturyLink for the Service Territory.
3. The City may not unreasonably refuse to award a competitive cable
communications franchise to CenturyLink.
4. The City and its residents will benefit from adoption of the CenturyLink Franchise,
which will introduce facilities -based competition into the cable communications
market in the Service Territory and thereby reduce costs to consumers and increase
the quality and availability of services.
5. CenturyLink is legally, technically, and financially qualified to operate a cable
communications system in the Service Territory and has complied with all
application requirements.
6. The City has complied with all franchise application requirements imposed by
State and federal law, including those identified herein or in the Franchise Report.
7. The terms and conditions of the CenturyLink Franchise pertaining to service area, a
PEG access requirement, and franchise fees are not more favorable or less
burdensome than the corollary terms of the Comcast Franchise.
8. The CenturyLink Franchise's initial deployment requirement of fifteen percent
(15%) within two (2) years and five (5) year timeline for substantially completing
build -out provides a reasonable period of time for CenturyLink to become capable
of reaching full deployment and is therefore consistent with both State and federal
law.
9. The Ordinance Granting a Cable Communications Franchise for Qwest Broadband
Services, Inc., d/b/a CenturyLink is formally and finally adopted.
10. The City finds and concludes that its actions are appropriate, reasonable, and
consistent in all respects with the mandates set forth in Chapter 238 of Minnesota
Statutes and applicable provisions of federal law, including 47 U.S.C. § 541(a).
page 57
PASSED AND ADOPTED in regular session of the City Council of the City of Mendota
Heights, Minnesota this 15th day of March, 2016.
Mayor of the City of Mendota Heights, Minnesota
Sandra Krebsbach
Printed Name
ATTEST:
City Clerk
Lorri Smith
Printed Name
page 58
CABLE TELEVISION FRANCHISE ORDINANCE
FOR
QWEST BROADBAND SERVICES, INC. D/BA/
CENTURYLINK INC.
CITY OF MENDOTA HEIGHTS, MINNESOTA
March 15, 2016
page 59
TABLE OF CONTENTS
SECTION 1. SHORT TITLE AND DEFINITIONS 2
SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS 7
SECTION 3. CONSTRUCTION STANDARDS 13
SECTION 4. DESIGN PROVISIONS 17
SECTION 5. SERVICE PROVISIONS 20
SECTION 6. LOCAL CHANNELS AND NETWORK DROP PROVISIONS 25
SECTION 7. INSTITUTIONAL NETWORK (I -NET) PROVISIONS 28
SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS 28
SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS 30
SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF
FRANCHISE 36
SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS 39
SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS 39
SECTION 13. MISCELLANEOUS PROVISIONS 40
SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS 42
EXHIBIT A GRANTEE COMMITMENT TO PEG ACCESS FACILITIES AND
EQUIPMENT
EXHIBIT B SERVICE TO PUBLIC AND PRIVATE BUILDINGS
EXHIBIT C FRANCHISE FEE PAYMENT WORKSHEET
EXHIBIT D INDEMNITY AGREEMENT
page 60
ORDINANCE NO. 493
AN ORDINANCE GRANTING A FRANCHISE TO QWEST BROADBAND SERVICES,
INC. D/B/A CENTURYLINK ("GRANTEE") TO CONSTRUCT, OPERATE, AND
MAINTAIN A COMPETITVE CABLE COMMUNICATIONS SYSTEM IN THE CITY OF
MENDOTA HEIGHTS, MINNESOTA SETTING FORTH CONDITIONS ACCOMPANYING
THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE
SYSTEM AND THE PUBLIC RIGHTS-OF-WAY; AND PRESCRIBING PENALTIES FOR
THE VIOLATION OF THE PROVISIONS HEREIN;
The City Council of the City of Mendota Heights, Minnesota ordains:
STATEMENT OF INTENT AND PURPOSE
The City intends, by the adoption of this Franchise, to bring about the consumer, business and
economic development benefits of facilities based competition in the Cable Communications
market place. Such competition can contribute significantly to the communication needs and
desires of the residents and citizens of the City and the public generally. Further, the City may
achieve better utilization and improvement of public services and enhanced economic
development with the development and operation of a competitive Cable System.
Adoption of this Franchise is, in the judgment of the City Council, in the best interests of the
City and its residents.
FINDINGS
In the review of the request for a competitive franchise by Grantee and negotiations related
thereto, and as a result of a public hearing, the City Council makes the following findings:
1. Grantee's technical ability, financial condition, legal qualifications, and character were
considered and approved in a full public proceeding after due notice and a reasonable
opportunity to be heard;
2. Grantee's plans for operating the Cable System were considered and found adequate and
feasible in a full public proceeding after due notice and a reasonable opportunity to be heard;
3. The Franchise granted to Grantee by the City complies with the existing applicable
Minnesota Statutes, federal laws and regulations;
4. The City has exercised its authority under Minnesota law to enter into a Joint and
Cooperative Agreement, and an Amended Joint and Cooperative Agreement, with other cities
authorized to grant a cable communications franchise, and has delegated authority to the
Northern Dakota County Cable Communications Commission to make recommendations to the
City regarding this Franchise and to be responsible for the ongoing administration and
enforcement of this Franchise as herein provided; and
5. The Franchise granted to Grantee is nonexclusive.
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SECTION 1. SHORT TITLE AND DEFINITIONS
1. Short Title. This Franchise Ordinance shall be known and cited as the CenturyLink
Cable Television Franchise Ordinance.
2. Definitions. For the purposes of this Franchise, the following terms, phrases, words, and
their derivations shall have the meaning given herein. When not inconsistent with the
context, words in the singular number include the plural number. The word "shall" is
always mandatory and not merely directory. The word "may" is directory and
discretionary and not mandatory.
a. "Affiliate" shall mean any Person controlling, controlled by or under common
control of Grantee.
b. "Applicable Laws" means any law, statute, charter, ordinance, rule, regulation,
code, license, certificate, franchise, permit, writ, ruling, award, executive order,
directive, requirement, injunction (whether temporary, preliminary or permanent),
judgment, decree or other order issued, executed, entered or deemed applicable to
Grantee by any governmental authority of competent jurisdiction.
c. "Basic Cable Service" means any service tier which includes the lawful
retransmission of local television broadcast signals and any public, educational,
and governmental access programming Basic Cable Service as defined herein
shall not be inconsistent with 47 U.S.C. § 543(b)(7).
d. "Cable Service" or "Service" means (A) the one-way transmission to Subscribers
of (i) Video Programming or (ii) Other Programming Service, and (B) Subscriber
interaction, if any, which is required for the selection or use of such Video
Programming or Other Programming Service. Cable Service or Service as
defined herein shall not be inconsistent with the definition set forth in 47 U.S.C. §
522(6).
e. "Cable System" or "System" means a system of antennas, cables, wires, lines,
towers, waveguides, or other conductors, converters, equipment, or facilities
located in the City and designed and constructed for the purpose of producing,
receiving, transmitting, amplifying, or distributing audio, video, and data. System
as defined herein shall not be inconsistent with the definition set forth in 47
U.S.C. § 522(7). Unless otherwise specified, it shall in this document refer to the
Cable System utilized by the Grantee in the City under this Franchise.
f. "Channel" or "Cable Channel" means a portion of the electromagnetic frequency
spectrum which is used in a Cable System and which is capable of delivering a
television Channel as defined by the Federal Communications Commission.
g.
"City" means the City of Mendota Heights, a municipal corporation, in the State
of Minnesota, acting by and through its City Council, or its lawfully appointed
designee.
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h. "City Code" means the Municipal Code of the City of Mendota Heights,
Minnesota, as may be amended from time to time.
i. "City Council" means the governing body of the City of Mendota Heights,
Minnesota.
j. "Commission" means the Northern Dakota County Cable Communications
Commission or its successors or delegations, including representatives of the
Member Cities as may exist pursuant to a then valid and existing Joint and
Cooperative Agreement and Amended Joint and Cooperative Agreement between
Member Cities.
k. "Commission Office" or "Commission Facility" means the facility located at
5845 Blaine Avenue, Inver Grove Heights, Minnesota 55076-1401 or alternative
location established in the Commission's sole discretion.
1. "Day" unless otherwise specified shall mean a calendar day.
m. "Demarcation Point" means the mutually agreed upon physical point at which the
Cable System enters a Subscriber's home or building.
n. "Drop" means the cable that connects the ground block on the Subscriber's
residence or institution to the nearest feeder cable of the System.
o. "Effective Date" shall mean March 20, 2016.
P. "FCC" means the Federal Communications Commission and any legally
appointed, designated or elected agent or successor.
q. "Franchise" or "Cable Franchise" means this ordinance and the regulatory and
contractual relationship established hereby.
r. "Franchise Area" means the entire geographic area within the City as it is now
constituted or may in the future be constituted.
s. "Franchise Fee" shall mean the fee assessed by the City to Grantee, in
consideration of Grantee's right to operate the Cable System within the City's
streets and Rights -of -Way, determined in amount as a percentage of Grantee's
Gross Revenues and limited to the maximum percentage allowed for such
assessment by federal law. The term Franchise Fee does not include the
exceptions noted in 47 U.S.C. §542(g)(2)(A-E).
t. "FTTH" ("Fiber to the Home") means fiber directly to the household.
u. "FTTN" ("Fiber to the Neighborhood") means fiber directly to the neighborhood
terminating at Remote Terminals.
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v. "GAAP" means generally accepted accounting principles as promulgated and
defined by the Financial Accounting Standards Board ("FASB"), Emerging Issues
Task Force ("EITF") and/or the U.S. Securities and Exchange Commission
("SEC").
w. "Grantee" means Qwest Broadband Services, Inc. d/b/a CenturyLink, its agents,
employees, lawful successors, transferees or assignees.
x. "Gross Revenue" means any and all compensation in whatever form, from any
source, directly or indirectly earned by Grantee or any Affiliate of Grantee or any
other Person who would constitute a cable operator of the Cable System under the
Cable Act, derived from the operation of the Cable System to provide Cable
Service within the City. Gross Revenues include, by way of illustration and not
limitation, monthly fees charged Subscribers for Cable Services including Basic
Cable Service, any expanded tiers of Cable Service, optional premium or on -
demand services; pay-per-view services; Pay Services, installation, disconnection,
reconnection and change -in-service fees, leased access Channel fees, other service
fees such HD fees, convenience fees, broadcaster fees, bill payment fees and
related charges imposed by Grantee regarding the provision of Cable Services; all
Cable Service lease payments from the Cable System to provide Cable Services in
the City, late fees and administrative fees, payments or other consideration
received by Grantee from programmers for carriage of programming on the Cable
System and accounted for as revenue under GAAP; revenues from rentals or sales
of Set Top Boxes or any other Cable System equipment; advertising sales
revenues booked in accordance with Applicable Law and GAAP; revenues from
program guides and electronic guides, additional outlet fees, Franchise Fees
required by this Franchise, revenue from Interactive Services to the extent they
are considered Cable Services under Applicable Law; revenue from the sale or
carriage of other Cable Services, revenues from home shopping and other
revenue-sharing arrangements. Grantee agrees that Gross Revenues shall include
all commissions paid to any Affiliate of the Grantee, or their successors,
associated with sale of advertising on the Cable System within the City allocated
according to this paragraph using total Cable Service Subscribers reached by the
advertising. Copyright fees or other license fees paid by Grantee shall not be
subtracted from Gross Revenues for purposes of calculating Franchise Fees.
Gross Revenues shall include revenue received by any entity other than Grantee
where necessary to prevent evasion or avoidance of the obligation under this
Franchise to pay the Franchise Fees.
Gross Revenues shall not include any taxes on services furnished by Grantee,
which taxes are imposed directly on a Subscriber or user by a city, county, state or
other governmental unit, and collected by Grantee for such entity. The Franchise
Fee is not such a tax. Gross Revenues shall not include amounts which cannot be
collected by Grantee and are identified as bad debt; provided that if amounts
previously representing bad debt are collected, then those amounts shall be
included in Gross Revenues for the period in which they are collected. Gross
Revenues shall not include payments for PEG Access support. The City
y
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acknowledges and accepts that Grantee shall maintain its books and records in
accordance with GAAP.
"Installation" means the connection, by or on the behalf of the Grantee, of the
System from feeder cable to the point of connection with the Subscriber Set Top
Box or other terminal equipment.
z. "Institutional Network" or "I -Net" means a communications network which is
described in Section 7 herein and which is generally available only to Subscribers
who are not residential Subscribers.
aa. "Interactive Services" are those services provided to Subscribers whereby the
Subscriber either (a) both receives information consisting of either television or
other signal and transmits signals generated by the Subscriber or equipment under
his/her control for the purpose of selecting what information shall be transmitted
to the Subscriber or for any other purpose or (b) transmits signals to any other
location for any purpose.
bb. "Living Unit" means a distinct address as tracked in the QC network inventory,
used by Grantee to identify existing or potential Subscribers. This includes, but is
not limited to, single family homes, multi -dwelling units (e.g., apartment
buildings and condominiums) and business locations.
cc. "Lockout Device" means an optional mechanical or electrical accessory to a
Subscriber's terminal which inhibits the viewing of a certain program, certain
channel, or certain channels provided by way of the Cable Communication
System.
dd. "Local Origination" means programming produced by the Grantee, the
Commission, or the City staff regarding issues and events affecting the Member
Municipalities of the Commission. Local origination programming may include
public, education, and government access programming
ee. "Member Cities" or "Member Municipalities" means those cities that are parties
to a then valid and existing joint powers agreement which, at the time of granting
this Franchise, include Inver Grove Heights, Lilydale, Mendota, Mendota
Heights, South St. Paul, Sunfish Lake, and West St. Paul.
ff. "Mosaic Channel" means a Channel which displays miniaturized media screens
and related information for a particular group of Channels with common themes.
The Mosaic Channel serves as a navigation tool for Subscribers, which displays
the group of Channels on a single Channel screen and also provides for easy
navigation to a chosen Channel.
gg.
"Normal Business Hours" means those hours during which most similar
businesses in the City are open to serve customers. In all cases, "Normal
Business Hours" shall include some evening hours at least one night per week
and/or some weekend hours.
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hh. "Normal Operating Conditions" means those service conditions which are within
the control of Grantee. Those conditions which are not within the control of
Grantee include, but are not limited to, natural disasters, civil disturbances, power
outages, telephone network outages, and severe or unusual weather conditions.
Those conditions which are ordinarily within the control of Grantee include, but
are not limited to, special promotions, pay-per-view events, rate increases, regular
peak or seasonal demand periods, and maintenance or upgrade of the System.
ii. "Other Video Programming" means information that a cable operator makes
available to all Subscribers generally.
jj. "Pay Service" means programming (such as certain on -demand movie channels or
pay-per-view programs) offered individually to Subscribers on a per -channel, per -
program or per -event basis.
kk. "PEG" means public, educational and governmental.
11. "Person" is any person, firm, partnership, association, corporation, company, or
other legal entity.
mm. "QC" means Qwest Corporation, a wholly owned subsidiary of CenturyLink, Inc.
and an Affiliate of Grantee.
nn. "Qualified Living Unit" means a Living Unit which meets the minimum technical
qualifications defined by Grantee for provision of Cable Service. A Living Unit
receiving a minimum of 25 Mbps downstream will generally be capable of
receiving Cable Service subject to Grantee performing certain network grooming
and conditioning.
oo. "Remote Terminal" means a facility that is located in a neighborhood, which
houses the electronics used to support the provision of Cable Services.
pp. "Right -of -Way" or "Rights -of -Way" means the area on, below, or above any real
property in the City, in which the City has an interest, including, but not limited to
any street, road, highway, alley, sidewalk, parkway, park, skyway, or any other
place, area, or real property owned by or under the control of the City, including
other dedicated Rights -of -Way for travel purposes and utility easements.
qq.
"Right -of -Way Ordinance" means any ordinance codifying requirements
regarding regulation, management and use of Rights -of -Way in the City,
including registration and permitting requirements.
rr. "Set Top Box" means an electronic device which converts signals to a frequency
acceptable to a television receiver of a Subscriber and by an appropriate selector
permits a Subscriber to view all Subscriber signals included in the Subscriber's
service.
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ss. "Signal" means any digital electrical or light impulses carried on the Cable
System, whether one-way or bi-directional.
tt. "Subscriber" means any Person who lawfully receives Cable Service via the
Cable System. In the case of multiple office buildings or multiple dwelling units,
the "Subscriber" means each lessee, tenant or occupant, not the building owner.
uu. "Video Programming" means programming provided by, or generally considered
comparable to programming provided by, a television broadcast station.
vv. "Wireline MVPD" means a multichannel video programming distributor that
utilizes the streets to install cable or fiber and is engaged in the business of
making available for purchase, by Subscribers, multiple Channels of Video
Programming in the City.
SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS
1 Grant of Franchise.
a. The City hereby authorizes Grantee to occupy or use the City's Rights -of -Way
subject to: 1) the provisions of this non-exclusive Franchise to provide Cable
Service within the City; and 2) all applicable provisions of the City Code. Said
Franchise shall constitute both a right and an obligation to provide Cable Services
as required by the provisions of this Franchise. Nothing in this Franchise shall be
construed to prohibit Grantee from: (1) providing services other than Cable
Services to the extent not prohibited by Applicable Law; or (2) challenging any
exercise of the City's legislative or regulatory authority in an appropriate forum.
The City hereby reserves all of its rights to regulate such other services to the
extent not prohibited by Applicable Law and no provision herein shall be
construed to limit or give up any right to regulate.
b. Grantee promises and guarantees, as a condition of exercising the privileges
granted by this Franchise, that any Affiliate of the Grantee involved in the
offering of Cable Service in the City, or directly involved in the ownership,
management or operation of the Cable System in the City, shall also comply with
all obligations of this Franchise. However, the City and Grantee acknowledge
that QC will be primarily responsible for the construction and installation of the
facilities in the Rights -of -Way which will be utilized by Grantee to provide Cable
Services. So long as QC does not provide Cable Service to Subscribers in the
City, QC will not be subject to the terms and conditions contained in this
Franchise. QC's installation and maintenance of facilities in the Rights -of -Way is
governed by applicable local, state and federal law. To the extent Grantee
constructs and installs facilities in the Rights -of -Way, such installation will be
subject to the terms and conditions contained in this Franchise. Grantee is
responsible for all provisions in this Franchise related to: 1) its offering of Cable
Services in the City; and 2) the operation of the Cable System regardless of what
entity owns or constructs the facilities used to provide the Cable Service. The
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City and Grantee agree that to the extent QC violates any Applicable Laws, rules,
and regulations, the City shall first seek compliance directly from QC. In the
event the City cannot resolve these violations or disputes with QC then the City
may look to Grantee to ensure such compliance. Failure by Grantee to ensure
QC's or any other Affiliate's compliance with Applicable Laws, including the
terms of this Franchise, shall be deemed a material breach of this Franchise by
Grantee.
2. Grant of Nonexclusive Authority.
a. The Grantee shall have the right and privilege, subject to the permitting and other
lawful requirements of the City Code, to construct, erect, and maintain, in, upon,
along, across, above, over and under the Rights -of -Way in the City a Cable
System and shall have the right and privilege to provide Cable Service. The
System constructed and maintained by Grantee or its agents shall not interfere
with other uses of the Rights -of -Way. Grantee shall make use of existing poles
and other above and below ground facilities available to Grantee to the extent it is
technically and economically feasible to do so.
b. Notwithstanding the above grant to use Rights -of -Way, no Right -of -Way shall be
used by Grantee if the City determines that such use is inconsistent with the
terms, conditions, or provisions by which such Right -of -Way was created or
dedicated, or with the present or reasonably anticipated future use of the Right -of -
Way.
c. This Franchise shall be nonexclusive, and the City reserves the right to grant a use
of said Rights -of -Way to any Person at any time during the period of this
Franchise for the provision of Cable Service. Such additional grants shall not
operate to materially modify, revoke, or terminate any rights previously granted to
Grantee other than as described herein. At a minimum, the City shall comply
with Minn. Stat. § 23 8.08, subd. 1(b) and subd. 1(c) when granting such
additional franchise.
d. Before granting an additional cable television franchise, the City shall give
written notice to the Grantee of any other proposal to service all or part of the
Franchise Area, identifying the applicant for such additional franchise and
specifying the date, time, and place at which the City shall consider and/or
determine whether such additional cable television franchise should be granted.
3. Lease or Assignment Prohibited. No Person may lease any portion of Grantee's
System for the purpose of providing Cable Service until and unless such Person shall
have first obtained and shall currently hold a valid franchise or other lawful authorization
from the City. Any assignment of rights under this Franchise shall be subject to and in
accordance with the requirements of Section 10, Paragraph 5.
4. Franchise Term. This Franchise shall be in effect for a term of five (5) years from the
date of acceptance by Grantee, unless terminated sooner as hereinafter provided. Six (6)
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months prior to the expiration of the initial five (5) year term, if the City determines that
Grantee is in compliance with all other material terms of this Franchise including the
build out obligations set forth in this Franchise as required by Applicable Law, the City
shall have the unilateral right to extend the Franchise for an additional five (5) year term
and notify Grantee in writing.
5. Compliance with Applicable Laws and the City Code.
a. The terms of this Franchise shall define the contractual rights and obligations of
Grantee with respect to the provision of Cable Service and operation of the
System in the City. However, Grantee shall at all times during the term of this
Franchise be subject to all lawful exercise of the police power, statutory rights,
and eminent domain rights of the City. This Franchise may be modified or
amended with the written consent of Grantee and the City as provided in Section
13, Paragraph 3 herein.
b. Grantee shall comply with the terms of the City Code, including any Right -of -
Way Ordinance, which may have the effect of superseding, modifying or
amending the terms of Section 3 and/or Section 8 herein, except that Grantee shall
not, through application of such City Code requirement or regulation of Rights -of -
Way, be subject to additional burdens with respect to usage of Rights -of -Way
which conflict with federal law or exceed burdens on similarly situated Rights -of -
Way users.
c. In the event of any conflict between Section 3 and/or Section 8 of this Franchise
and any lawful and generally applicable City Code provision which addresses
usage of the Rights -of -Way, the conflicting terms in Section 3 and/or Section 8 of
this Franchise shall be superseded by such City Code provision, except that
Grantee shall not, through application of such City ordinance or regulation of
Rights -of -Way, be subject to additional burdens with respect to usage of Rights -
of -Way which conflicts with federal law or exceeds burdens on similarly situated
Rights -of -Way users.
d. In the event any lawfully and generally applicable City Code provision which
addresses usage of the Rights -of -Way adds to, modifies, amends, or otherwise
differently addresses issues addressed in Section 3 and/or Section 8 of this
Franchise, Grantee shall comply with such City Code provision regardless of
which requirement was first adopted except that Grantee shall not, through
application of such City ordinance or regulation of Rights -of -Way, be subject to
additional burdens with respect to usage of Rights -of -Way which conflicts with
federal law or exceeds burdens on similarly situated Rights -of -Way users.
e. In the event Grantee cannot determine how to comply with any Right -of -Way
requirement of the City, whether pursuant to this Franchise or other requirement,
Grantee shall immediately provide written notice of such question, including
Grantee's proposed interpretation, to the City, in accordance with Section 2,
Paragraph 14. The City shall provide a written response within seventeen (17)
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Days of receipt indicating how the requirements cited by Grantee apply. Grantee
may proceed in accordance with its proposed interpretation in the event a written
response is not received within seventeen (17) Days of mailing or delivering such
written question.
f. Except as otherwise set forth in Section 2, Paragraph 5 (a -e), in the event of a
conflict with the City Code, the terms of this Franchise shall govern.
6. Rules of Grantee. Grantee shall have the authority to promulgate such rules,
regulations, terms and conditions governing the conduct of its business as shall be
reasonably necessary to enable said Grantee to exercise its rights and perform its
obligations under this Franchise and to assure uninterrupted service to each and all of its
Subscribers; provided that such rules, regulations, terms and conditions shall not be in
conflict with Applicable Laws.
7. Franchise Area. The Grantee is hereby authorized to provide Cable Services over a
Cable System within the jurisdictional boundaries of the City, including any areas
annexed by the City during the term of this Franchise. The parties acknowledge that
Grantee is not the first entrant into the wireline video market in the City. The Grantee
acknowledges that the City desires wireline competition throughout the entire City so all
residents may receive the benefits of competitive Cable Services. Grantee aspires to
provide Cable Service to all households within the City by the end of the five (5) year
term of this Franchise. Grantee agrees that its deployment of Cable Service in the City
will be geographically dispersed throughout the City, and shall be made available to
diverse residential neighborhoods of the City without discrimination.
8. Initial Build out. No later than the second anniversary of the Effective Date of this
Franchise, Grantee shall: (i) be capable of serving a minimum of fifteen percent (15%) of
the City's households with Cable Service, provided, however, Grantee will make its best
efforts to complete such deployment within a shorter period of time; and (ii) activate at
least one (1) Remote Terminal capable of offering Cable Service in each of the seven (7)
Member Cities. This initial minimum build -out commitment shall include a significant
number of households below the medium income in the City. Nothing in this Franchise
shall restrict Grantee from serving additional households in the City with Cable Service.
9. Quarterly Meetings. In order to permit the Commission to monitor and enforce the
provisions of this section and other provisions of this Franchise, the Grantee shall, upon
demand, promptly make available to the Commission maps and other documentation
showing exactly where within the City the Grantee is currently providing Cable Service
through FTTN and FTTH. Grantee shall meet with the Commission, not less than once
quarterly, to demonstrate Grantee's compliance with the provisions of this section
concerning the deployment of Cable Services in each Member City including, by way of
example, the provision of this section in which Grantee commits that a significant portion
of its initial investment will be targeted to areas below the median income within the
City, and the provisions of this section that prohibit discrimination in the deployment of
Cable Services to certain Member Cities on the basis of the income level of the residents
of those Member Cities. In order to permit the Commission and the City to monitor and
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enforce the provisions of this section and other provisions of this Franchise, the Grantee
shall, commencing ninety (90) Days after the Effective Date, and continuing throughout
the term of this Franchise, meet quarterly with the Commission and provide reports and
make available maps showing the Commission the following information:
a. The total number of Living Units throughout the City;
b. The total number of Qualified Living Units; and
c. Information demonstrating Grantee's commitment that a significant portion of
Grantee's initial investment and Grantee's deployment of Cable Services in the
City has been targeted to households below the City's median household income.
10. Additional Build -Out Based on Market Success. If, at any quarterly meeting, Grantee
is actually serving twenty seven and one-half percent (27.5%) of the households capable
of receiving Cable Service from Grantee, then Grantee agrees the minimum build -out
commitment shall increase to include all of the households then capable of receiving
Cable Service plus an additional fifteen (15%) of the total households in the City, which
Grantee agrees to serve within two (2) years from the quarterly meeting; provided,
however, the Grantee shall make its best efforts to complete such deployment within a
shorter period of time. For example, if, at a quarterly meeting with the Commission,
Grantee shows that it is capable of serving sixty percent (60%) of the households in the
City with Cable Service and is actually serving thirty percent (30%) of those households
with Cable Service, then Grantee will agree to serve an additional fifteen percent (15%)
of the total households in the City no later than two (2) years after that quarterly meeting
(a total of 75% of the total households). This additional build -out based on market
success shall continue until every household in the City is served.
11. Nondiscrimination. Grantee shall provide Cable Service under non-discriminatory rates
and reasonable terms and conditions to all Living Units in the City where the Grantee is
capable of providing Cable Service. Grantee shall not arbitrarily refuse to provide Cable
Services to any Living Unit where the Grantee is capable of providing Cable Service.
Grantee shall provide information to the City clearly identifying all Qualified Living
units in the City. Grantee shall not deny Cable Services to any group of Living Units
based upon the income level of residents of the local area in which such group resides,
nor shall Grantee base decisions about construction or maintenance of its Cable System
or facilities based upon the income level of residents of the local area in which such
group resides. Grantee shall provide such service at non-discriminatory monthly rates for
residential Subscribers, consistent with Applicable Law. Grantee shall not discriminate
between or among any individuals in the availability of Cable Service based upon income
in accordance and consistent with 47 U.S.C. Section 541(a)(3), or based upon race or
ethnicity.
12. Standard Installation. Except as otherwise provided in this Franchise, where Grantee is
capable of providing Cable Service, Grantee shall provide Cable Services at its Standard
Installation rates within seven (7) Days of a request by any Qualified Living Unit. A
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request shall be deemed made on the date of signing a service agreement, receipt of funds
by Grantee or receipt by Grantee of a verified verbal or written request.
13. Multiple Dwelling Units. Grantee shall ensure that rates charged by Grantee to residents
of multiple dwelling unit buildings do not exceed the charges paid by residents of single
family homes. Grantee may not condition provision of services to multiple dwelling unit
buildings on any requirement not imposed on other Subscribers. Grantee may not
condition provision of services to multiple dwelling unit buildings on an exclusive
service agreement with Grantee. Grantee may offer a building owner the option of a
long-term agreement in return for installation of internal wiring or other
telecommunications improvements unique to the building, but Grantee must offer the
alternative of a no term agreement to building owners who wish to contract directly for
installation by a contractor approved by Grantee and in accordance with Grantee's
generally applicable technical standards. The foregoing does not restrict, condition, or
inhibit Grantee's ability to negotiate longer-term right of entry agreements prior to
offering service to multiple dwelling unit building residents for the purpose of
maintaining Grantee's on-site signal and facilities. For purposes of this section, a "right
of entry agreement" means an agreement that permits Grantee access to the building to
extend its distribution cable from the Cable System in the Right -of -Way or public
easement to the utility closet or other Demarcation Point in the multiple dwelling unit
building.
14. Written Notice. All notices, reports, or demands required to be given in writing under
this Franchise shall be deemed to be given when delivered personally to any officer of the
Grantee or the City's administrator of this Franchise during Normal Business Hours or
forty-eight (48) hours after it is deposited in the United States mail in a sealed envelope,
with registered or certified mail postage prepaid thereon, addressed to the party to whom
notice is being given, as follows:
If to City: City Administrator
City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
If to Commission: Executive Director
Northern Dakota County Cable Communications Commission
5845 Blaine Avenue
Inver Grove Heights, MN 55076
If to Grantee: CenturyLink
Attn: Public Policy
200 S 5th Street 21st Floor
Minneapolis, MN 55402
With a courtesy
copy to: CenturyLink
Attn: Public Policy
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1801 California St. Room 1000
Denver, CO 80202
Recognizing the widespread usage and acceptance of electronic forms of communication,
emails will be acceptable as formal notification related to the conduct of general business
amongst the parties to this contract, including but not limited to programming and price
adjustment communications. Such communication should be addressed and directed to
the Person of record as specified above.
Such addresses may be changed by either party upon notice to the other party given as
provided in this section.
SECTION 3. CONSTRUCTION STANDARDS
1. Registration, Permits, Construction Codes, and Cooperation.
a. Grantee agrees to obtain a permit as required by the City prior to removing,
abandoning, relocating or reconstructing, if necessary, any portion of its facilities.
Notwithstanding the foregoing, the City understands and acknowledges there may
be instances when Grantee is required to make repairs, in compliance with federal
or state laws, that are of an emergency nature. Grantee shall notify the City prior
to such repairs, if practicable, and shall obtain the necessary permits in a
reasonable time after notification to the City.
b. Generally applicable fees and reimbursement paid through the permitting process
is separate, and in addition to, any other fees included in the Franchise.
c. Failure to obtain permits or comply with permit requirements shall be grounds for
revocation of this Franchise, or any lesser sanctions provided herein or in any
other Applicable Law.
d. Grantee shall not open or disturb the surface of any Rights -of -Way or public place
for any purpose without first having obtained a permit to do so in the manner
provided by law. All excavation shall be coordinated with other utility excavation
or construction so as to minimize disruption to the public.
2. Use of existing poles or conduits.
a. Grantee shall utilize existing poles, conduits and other facilities whenever
commercially and technologically feasible, and shall not construct or install any
new, different or additional poles whether on public property or on privately -
owned property until the written approval of the City is obtained. No location or
any pole or wire -holding structure of Grantee shall be a vested interest, and any
Grantee poles or structures shall be removed or modified by Grantee at its own
expense whenever the City determines that the public convenience would be
enhanced thereby.
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b. The facilities of Grantee shall be placed underground where all utility lines are
placed underground.
3. Minimum Interference.
a. Grantee shall use its best efforts to give reasonable prior notice to any adjacent
private property owners who will be negatively affected or impacted by Grantee's
work in the Rights -of -Way.
b. All transmission and distribution structures, lines and equipment maintained by
Grantee shall be located so as to cause minimum interference with the
unencumbered use of Rights -of -Way and other public places except for normal
and reasonable obstruction and interference which might occur during
construction and to cause minimum interference with the rights and reasonable
convenience of property owners who adjoin any of the Rights -of -Way and public
places.
4. Disturbance or damage. Any and all Rights -of -Way, or public or private property,
which are disturbed or damaged during the repair, replacement, relocation, operation,
maintenance, expansion, extension or reconstruction of the Grantee's System shall be
promptly and fully restored by Grantee, at its expense, to substantially the same condition
as that prevailing prior to Grantee's work, as determined by the City. If Grantee shall fail
to promptly perform the restoration required herein, after written request of the City and
reasonable opportunity to satisfy that request, the City shall have the right to put the
Rights -of -Way, public, or private property back into substantially the same condition as
that prevailing prior to Grantee's work. In the event the City determines that Grantee is
responsible for such disturbance or damage and fails to restore as set forth in this section,
Grantee shall be obligated to fully reimburse the City for such restoration within thirty
(30) Days after its receipt of the City's invoice therefor.
5. Temporary Relocation.
a. At any time during the period of the Franchise, Grantee shall, at its own expense,
protect, support, temporarily disconnect, relocate or remove any of its property
when, in the opinion of the City, (i) the same is required by reason of traffic
conditions, public safety, Rights -of -Way vacation, the City freeway or Rights -of -
Way construction, the City alteration to or establishment of any Rights -of -Way or
any facility within the Rights -of -Way, sidewalk, or other public place, including
but not limited to, installation of sewers, drains, waterlines, power lines, traffic
signal lines or transportation facilities; or (ii) a City project or activity makes
temporary disconnection, removal, or relocation necessary or less expensive for
the City.
b. Grantee shall, on request of any Person holding a permit to move a building,
temporarily raise or lower its wires to permit the movement of such buildings.
The actual expense of such temporary removal or raising or lowering of wires
shall be paid by the Person requesting the same, and Grantee shall have the
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authority to require such payment in advance. Grantee shall be given not less than
ten (10) Days advance written notice from such Person holding a permit to
arrange such temporary wire alterations.
6. Emergency. Whenever, in case of fire or other emergency, it becomes necessary in the
judgment of the city administrator, police chief, fire chief, or their delegates, to remove or
damage any of Grantee's facilities, no charge shall be made by Grantee against the City
for restoration, repair or damages. Notwithstanding the above, Grantee reserves the right
to assert a right of reimbursement or compensation from any responsible party.
7. Tree Trimming. Grantee shall have the authority to trim trees on public Rights -of -Way
at its own expense as may be necessary to protect its wires and facilities, subject to any
required supervision and direction by the City. Trimming of trees on private property
shall require consent of the property owner. Any trimming of trees by the Grantee in the
Rights -of -Way shall be subject to such generally applicable regulation as the city
administrator or other authorized official may establish to protect the public health, safety
and convenience.
8. Protection of Facilities. Nothing contained in this section shall relieve any Person from
liability arising out of the failure to exercise reasonable care to avoid damaging Grantee's
facilities while performing any work connected with grading, regrading or changing the
line of any Rights -of -Way or public place or the construction or reconstruction of any
sewer or water system.
9. Installation Records. Grantee shall keep accurate installation records, maps or
diagrams, of the location of its facilities in the Rights -of -Way and public ways and
furnish them to the City upon request. Grantee shall cooperate with the City to furnish, if
possible, such information in an electronic mapping format compatible with the then -
current City electronic mapping format. At the commencement of this Franchise and
upon completion of any further construction or relocation of underground facilities in the
Rights -of -Way and public ways, Grantee shall provide the City, if possible, with
installation records in an electronic format compatible with the then -current City
electronic mapping format showing the location of the underground and above ground
facilities.
10. Locating Facilities.
a. If, during the design process for public improvements, the City discovers a
potential conflict with proposed construction, Grantee shall either: (a) locate and,
if necessary, expose its facilities in conflict or (b) use a location service under
contract with the City or State to locate or expose its facilities. Grantee is
obligated to furnish the location information in a timely manner, but in no case
longer than thirty (30) Days.
b. The City reserves the prior and superior right to lay, construct, erect, install, use,
operate, repair, replace, remove, relocate, regrade, widen, realign, or maintain any
Rights -of -Way, aerial, surface, or subsurface improvement, including but not
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limited to water mains, traffic control conduits, sanitary or storm sewers,
subways, tunnels, bridges, viaducts, or any other public construction within the
Rights -of -Way of the City limits.
11. City's Rights. Nothing in this Franchise shall be construed to prevent the City from
constructing, maintaining, repairing or relocating sewers; grading, paving, maintaining,
repairing, relocating and/or altering any Right -of -Way; constructing, laying down,
repairing, maintaining or relocating any water mains; or constructing, maintaining,
relocating, or repairing any sidewalk or other public work.
12. Interference with the City Facilities. The installation, use and maintenance of
Grantee's facilities within the Rights -of -Way and public ways authorized herein shall be
in such a manner as not to unreasonably interfere with the City's placement, construction,
use and maintenance of its Rights -of -Way and public ways, Rights -of -Way lighting,
water pipes, drains, sewers, traffic signal systems or other City systems that have been, or
may be, installed, maintained, used or authorized by the City.
13. Interference with Utility Facilities. Grantee agrees not to install, maintain or use any of
its facilities in such a manner as to damage or unreasonably interfere with any existing
facilities of a utility located within the Rights -of -Way and public ways of the City.
Nothing in this section is meant to limit any rights Grantee may have under Applicable
Laws to be compensated for the cost of relocating its facilities from the utility that is
requesting the relocation.
14. Collocation. To maximize public and employee safety, to minimize visual clutter of
aerial plant, and to minimize the amount of trenching and excavation in and along the
City Rights -of -Way and sidewalks for underground plant, Grantee shall make every
commercially reasonable effort to collocate compatible facilities within the Rights -of -
Way subject to the engineering requirements of the owners of utility poles and other
facilities, in the case that relocation or extension of Grantee's facilities is approved or
required by the City.
15. Safety Requirements.
a. Grantee shall at all times employ ordinary and reasonable care and shall install,
maintain, and use nothing less than commonly accepted methods and devices for
preventing failures and accidents which are likely to cause damage or injuries.
b. Grantee shall install and maintain its System and other equipment in accordance
with the City Code and the requirements of the National Electric Safety Code and
all other applicable FCC, state and local regulations, and in such manner that they
will not interfere with the City's communications technology related to health,
safety and welfare of the residents.
c. Cable System structures, lines, equipment and connections in, over, under and
upon the Rights -of -Way of the City, wherever situated or located, shall at all
times be kept and maintained in good condition, order, and repair so that the same
shall not menace or endanger the life or property of the City or any Person.
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SECTION 4. DESIGN PROVISIONS
1 System Description.
a. The Cable System shall have a bandwidth capable of providing the equivalent of a
typical 750 MHz Cable System. Recognizing that the City has limited authority
under federal law to designate the technical method by which Grantee provides
Cable Service, as of the Effective Date of this Franchise, Grantee provides its
Cable Service utilizing two (2) different architectures. First, using a passive
optical network ("PON") platform, the Grantee provides Cable Service to some
Qualified Living Units by connecting fiber directly to the household ("FTTH").
Second, the Grantee provides Cable Service to some Qualified Living Units by
deploying fiber into the neighborhoods to Remote Terminals and using the
existing copper infrastructure to increase broadband speeds ("FTTN"). In both
the FTTH and FTTN footprint, a household receiving a minimum of 25 Mbps
shall be generally capable of receiving Cable Service after Grantee performs
certain network grooming and conditioning. Grantee shall determine in its
discretion where to upgrade its network to convert these households to Qualified
Living Units.
b. Grantee shall use equipment used in high-quality, reliable, modern Cable Systems
of similar design. The System shall be designed such that at a minimum all
technical specifications of this Franchise are met. The System shall be designed
such that no noticeable degradation in signal quality will appear at the Subscriber
terminal.
c. All final programming decisions remain the discretion of Grantee in accordance
with this Franchise, provided Grantee notifies the City and Subscribers in writing
thirty (30) Days prior to any Channel additions, deletions, or realignments in the
manner and to the extent required by federal law and subject to Grantee's signal
carriage obligations hereunder and pursuant to 47 U.S.C. § 531-536 and to the
City's rights pursuant to 47 U.S.C. § 545. Location and relocation of the PEG
Channels shall be governed by Section 6 and Exhibit A.
2. Interruption of Service. To the extent within Grantee's control in the ordinary course of
business, Grantee shall interrupt service only for good cause and for the shortest time
possible. Such interruption shall occur during periods of minimum use of the System
rebuttably presumed to be between the hours of 12:00 a.m. and 6:00 a.m. local time. If
service is interrupted for a total period of more than twenty-four (24) continuous hours to
one or more Subscribers in any thirty (30) Day period, those Subscribers shall, upon
request, be credited pro rata for such interruption.
3. Technical Standards. The technical standards used in the operation of the System shall
comply, at minimum, with the applicable technical standards promulgated by the FCC
relating to Cable Systems pursuant to Title 47, Section 76, Subpart K of the Code of
Federal Regulations, as may be amended or modified from time to time, which
regulations are expressly incorporated herein by reference. The Cable System shall be
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designed, constructed, routinely inspected, and maintained to guarantee that the Cable
System meets or exceeds the requirements of the most current editions of the National
Electrical Code (NFRA 70) and the National Electrical Safety Code (ANSI C2). In all
matters requiring interpretation of either of these codes, the City's interpretation shall
control over all other sources and interpretations.
4. Special Testing.
a. Throughout the term of this Franchise, the City shall have the right to inspect all
construction or installation work performed pursuant to the provisions of the
Franchise. In addition, the City may require special testing of a location or
locations within the System if there is a particular matter of controversy or
unresolved complaints regarding such construction or installation work or
pertaining to such location(s). Demand for such special tests may be made on the
basis of complaints received or other evidence indicating an unresolved
controversy or noncompliance. Such tests shall be limited to the particular matter
in controversy or unresolved complaints. The City shall endeavor to so arrange
its request for such special testing so as to minimize hardship or inconvenience to
Grantee or to the Subscribers caused by such testing.
b. Before ordering such tests, Grantee shall be afforded thirty (30) Days following
receipt of written notice to investigate and, if necessary, correct problems or
complaints upon which tests were ordered. The City shall meet with Grantee
prior to requiring special tests to discuss the need for such and, if possible,
visually inspect those locations which are the focus of concern. If, after such
meetings and inspections, the City wishes to commence special tests and the thirty
(30) Days have elapsed without correction of the matter in controversy or
unresolved complaints, the tests shall be conducted at Grantee's expense by a
qualified engineer selected by the City and Grantee shall cooperate in such
testing.
5. Drop Testing and Replacement. To the extent applicable, Grantee shall insert a 750
MHz carrier or equivalent at a level 10db below the video carriers that shall be measured
and recorded by Grantee as a normal procedure during all service and installation calls.
In addition, the Drops and related passive equipment may be inspected to assure that the
Drop and passive equipment can pass the full 750 MHz System capacity. In the event
measurement of the carrier or the inspection demonstrates that a Drop or associated
passive equipment does not pass the full 750 MHz, the Subscriber address will be
recorded by Grantee, and Grantee shall provide the City and the Commission, or their
designees, upon request, a report indicating the addresses where Drops or associated
passive equipment have failed. Grantee shall replace all failing Drops and/or associated
passive equipment at the time the address upgrades service to a level which requires a
signal above the 550 MHz spectrum at no separate charge to the individual Subscriber.
6. FCC Reports. The results of any tests required to be filed by Grantee with the FCC or
placed in Grantee's public inspection file as required by FCC rules, shall also be made
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available to the City or its designee upon request within ten (10) Days of the date of
request.
7. Annexation. Upon the annexation of any additional land area by the City, the annexed
area shall thereafter be subject to all the terms of this Franchise immediately upon
notification to Grantee of the annexation by the City.
8. Line Extension.
a. Grantee shall construct and operate its Cable System to as to provide service to all
parts of its Franchise Area as provided in this Franchise and having a density
equivalent to seven (7) dwelling units per one-quarter (1/4) mile of feeder cable as
measured from the nearest active plant if the extension is to be constructed using
aerial plant, and ten (10) dwelling units per one-quarter (1/4) mile of feeder cable
as measured from the nearest active plant if the extension is to be constructed
using underground plant. The City, for its part, shall endeavor to exercise
reasonable efforts to require developers and utility companies to provide the
Grantee with at least fifteen (15) Days advance notice of an available open trench
for the placement of necessary cable.
b. Where the density is less than that specified above, Grantee shall inform Persons
requesting service of the possibility of paying for installation or a line extension
and shall offer to provide them with a free written estimate of the cost, which
shall be provided within fifteen (15) working days of such a request. The charge
for installation or extension for each Person requesting service shall not exceed a
pro rata share of the actual cost of extending the service and Grantee shall not be
obligated to extend its System until seventy-five percent (75%) of the Persons
requesting service in such area have prepaid their pro rata share of the extension.
c. Any residential unit located within one -hundred twenty-five (125) feet of the
nearest active plant on Grantee's System shall be connected to the System at no
charge other than the Standard Installation charge. Grantee shall, upon request by
any potential Subscriber residing in the City beyond the one hundred twenty-five
(125) foot limit, extend service to such Subscriber provided that the Subscriber
shall pay the net additional Drop costs.
d. Under Normal Operating Conditions, if Grantee cannot perform installations
within the times specified in applicable customer standards, the Subscriber may
request and is entitled to receive a credit equal to the charge for a Standard
Installation. For any installation that is not a free installation or a Standard
Installation, Grantee shall provide the Subscriber with a written estimate of all
charges within twelve (12) Days of a request by the Subscriber. Failure to
comply will subject Grantee to appropriate enforcement actions. This section
does not apply to the introduction of new products and services when Grantee is
utilizing a phased introduction.
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e. Grantee shall not have a line extension obligation until the first date by which
Grantee is providing Cable Service to more than fifty percent (50%) of all
Subscribers receiving facilities based Cable Service from both the Grantee and
any other provider(s) of Cable Service within the City. At that time, the City, in
its reasonable discretion and after meeting with Grantee, shall determine the
timeframe to complete deployment to the remaining households in the City,
including the density requirements set forth in Section 4, Paragraph 8 (a -d) above.
9. Nonvoice Return Capability. Grantee is required to use cable and associated
electronics having the technical capacity for nonvoice return communications.
10. Lockout Device. Upon the request of a Subscriber, Grantee shall make available a
Lockout Device in accordance with Applicable Law.
11. Home Wiring. In order to ensure consumer choice for all Wireline MVPDs, Grantee
shall fully cooperate with all Wireline MVPDs. Grantee shall further, upon request,
provide all Wireline MVPDs immediate access to all "home run" wiring in a multiple
dwelling unit, provided however, that if the equipment is owned by Grantee, the
competitive provider shall, in accordance with Minnesota Statutes Section 238.25, and
upon request, reimburse Grantee its pro rata cost of the home run wiring and installation,
reduced to the extent of cumulative depreciation of the home run wiring at the time the
competitive provider begins providing service.
SECTION 5. SERVICE PROVISIONS
1. Regulation of Service Rates. The City may regulate rates for the provision of Cable
Service, equipment, or any other communications service provided over the System to the
extent allowed under Applicable Laws. The City and the Commission reserve the right to
regulate rates for any future services to the extent permitted by Applicable Laws. Any
rate regulation undertaken by the City shall at all times comply with the rate regulations
of the FCC at 47 C.F.R. §76.900 et. seq., as may from time to time be amended.
2. Sales Procedures. Grantee shall not exercise deceptive sales procedures when marketing
any of its services within the City. In its initial communication or contact with a
prospective Subscriber and in all general solicitation materials marketing the Grantee or
its services as a whole, Grantee shall inform the prospective Subscriber of all levels of
service available, including the lowest priced service tiers. Grantee shall have the right to
market door-to-door during reasonable hours consistent with Applicable Laws.
3. Consumer Protection and Service Standards. Grantee shall at all times comply with
all of the standards and requirements for customer service set forth in this Section 5,
Paragraph 3 (c -f) below during the term of this Franchise. During the term of the
Franchise the Grantee shall comply with one (1) of the following requirements, a or b
below.
a. Grantee shall maintain one (1) or more convenient local customer service and bill
payment business office locations within the Commission Franchise Area (i.e.
within one (1) or more of the Member Cities' Franchise Areas) for matters such as
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receiving Subscriber payments, handling billing questions, equipment drop-off,
pick up or replacement and customer service information. The Grantee shall
maintain a business office or offices for the purpose of receiving and resolving all
complaints regarding the quality of service, equipment malfunctions and
replacement, billing disputes, property or service restoration issues and similar
customer service matters. The office must be reachable by a local, toll-free
telephone call.
b. Grantee shall maintain convenient local Subscriber service and bill payment
locations for the purpose of receiving Subscriber payments or equipment returns.
Unless otherwise requested by the Subscriber, Grantee shall deliver equipment
directly to the Subscriber at no cost to the Subscriber. The Grantee shall maintain
a business office or offices for the purpose of receiving and resolving all
complaints regarding the quality of service, equipment malfunctions and
replacement, billing disputes, property or service restoration issues and similar
customer service matters. The office must be reachable by a local, toll-free
telephone call, and Grantee shall provide the City with the name, address and
telephone number of an office that will act as the Grantee's agent to receive
complaints, regarding quality of service, equipment malfunctions, billings, and
similar matters. At a minimum Grantee shall also provide the following:
i. Multiple third party commercial locations within the Commission's
Franchise Area (such as grocery stores or check cashing establishments,
e.g. Western Union) at which Subscribers can remit payments and receive
immediate receipts and transaction activation numbers allowing them to
expeditiously maintain or restore Cable Service.
ii. Grantee will provide a service technician to any Qualified Living Unit in
the City, free of charge to the Subscriber, where necessary to repair,
replace or troubleshoot equipment issues.
iii. Subscribers shall be able to return and receive equipment, free of charge,
via national overnight courier service (such as FedEx or UPS) if a service
technician is not required to visit the Subscriber's Qualified Living Unit.
iv. In the event Grantee provides Cable Service to a minimum of thirty
percent (30%) of the total number of Cable Service Subscribers within
Commission Franchise Area served by cable operators franchised within
the Commission Franchise Area, the Grantee shall then be required to
comply with the requirements of Section 5, Paragraph 3 (a) above.
c. Grantee shall comply with the following consumer protection standards:
Cable System office hours and telephone availability:
i. Grantee will maintain a local, toll-free or collect call telephone access line
which will be available to its Subscribers twenty-four (24) hours a day,
seven (7) days a week.
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1. Trained Grantee representatives will be available to respond to
customer telephone inquiries during Normal Business Hours.
2. After Normal Business Hours, the access line may be answered by
a service or an automated response system, including an answering
machine. Inquiries received after Normal Business Hours must be
responded to by a trained Grantee representative on the next
business day.
ii. Under Normal Operating Conditions, telephone answer time by a
customer representative, including wait time, shall not exceed thirty (30)
seconds when the connection is made. If the call needs to be transferred,
transfer time shall not exceed thirty (30) seconds. These standards shall
be met no less than ninety percent (90%) of the time under Normal
Operating Conditions, measured on a quarterly basis.
iii. Grantee shall provide the Commission and the City with the name, address
and telephone number of an office that will act as the Grantee's agent to
receive complaints, regarding quality of service, equipment malfunctions,
billings, and similar matters. Grantee will maintain an "escalated
complaint process" to address unresolved complaints from Subscribers. A
team of specifically identified employees of Grantee shall be available to
the City and the Commission via email and telephone for reporting
issues. These specifically identified employees of Grantee will have the
ability to take actions to resolve Subscriber complaints relating to billing,
property or service restoration, technical appointments, or any other
Subscriber matters when necessary. Grantee will follow-up with the City
or the Commission in writing by email (and by phone when necessary)
with a summary of the results of the complaint(s).
iv. The Grantee shall utilize such equipment and software and keep such
records as are necessary or required to enable the City to determine
whether the Grantee is complying with all telephone answering standards
required by applicable customer service regulations and laws, as amended
from time to time.
v. Under Normal Operating Conditions, the customer will receive a busy
signal less than three percent (3%) of the time.
vi. Customer service center and bill payment locations will be open at least
during Normal Business Hours. Payment drop boxes shall be emptied at
least once a day, Monday through Friday, with the exception of legal
holidays, and payments shall be posted to Subscribers' accounts within
forty-eight (48) hours of pick-up. Subscribers shall not be charged a late
fee or otherwise penalized for any failure by the Grantee to empty a drop
box as specified herein, or to properly credit a Subscriber for a payment
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timely made. Grantee shall provide Subscribers with notice regarding
drop box payment, pick up and posting procedures.
d. Installations, outages and service calls. Under Normal Operating Conditions,
each of the following four (4) standards will be met no less than ninety-five
percent (95%) of the time measured on a quarterly basis:
i. Standard Installations will be performed within seven (7) business days
after an order has been placed. "Standard" Installations are those that are
to a Qualified Living Unit.
ii. Excluding conditions beyond the control of Grantee, Grantee will begin
working on "service interruptions" promptly and in no event later than
twenty-four (24) hours after the interruption becomes known. Grantee
must begin actions to correct other service problems the next business day
after notification of the service problem.
iii. The "appointment window" alternatives for Installations, service calls, and
other Installation activities will be either a specific time or, at maximum, a
four-hour time block during Normal Business Hours. (Grantee may
schedule service calls and other Installation activities outside of Normal
Business Hours for the express convenience of the customer.)
iv. Grantee may not cancel an appointment with a customer after the close of
business on the business day prior to the scheduled appointment.
v. If Grantee's representative is running late for an appointment with a
customer and will not be able to keep the appointment as scheduled, the
customer will be contacted. The appointment will be rescheduled, as
necessary, at a time which is convenient for the customer.
vi. For purposes of determining conditions beyond the control of Grantee
under this section, power outages of Grantee's power supplies or
telephone system may be within the control of Grantee.
e. Communications between Grantee and Subscribers:
i. Notifications to Subscribers:
1. Grantee shall provide written information on each of the following
areas at the time of Installation of service, at least annually to all
Subscribers, and at any time upon request:
a. Products and services offered;
b. Prices and options for all levels, including free
programming services and conditions of subscription to
programming and other services;
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c. Installation and service maintenance policies;
d. Instructions on how to use the Cable Service;
e. Channel positions of the programming carried on the
System; and
f. Billing and complaint procedures, including the address
and telephone number of the Commission's office.
2. Customers will be notified of any changes in rates, programming
services or Channel positions as soon as possible in writing.
Notice must be given to Subscribers a minimum of thirty (30)
Days in advance of such changes if the changes are within the
control of Grantee. In addition, the Grantee shall notify
Subscribers thirty (30) Days in advance of any significant changes
in the other information required by Section 5, Paragraph 3(e)(i)(1)
above. Grantee shall not be required to provide prior notice of any
rate changes as a result of a regulatory fee, Franchise Fee, or other
fees, tax, assessment or charge of any kind imposed by any federal
agency, state or franchising authority on the transaction between
the operator and the Subscriber.
ii. Billing:
1. Bills will be clear, concise and understandable. Bills must be fully
itemized, with itemizations including, but not limited to, basic and
premium service charges and equipment charges. Bills will also
clearly delineate all activity during the billing period, including
optional charges, rebates and credits.
2. In case of a billing dispute, Grantee must respond to a written
complaint from a Subscriber within thirty (30) Days.
iii. Refunds: Refund checks will be issued promptly, but no later than either:
1. The customer's next billing cycle following resolution of the
request or thirty (30) Days, whichever is earlier, or
2. The return of the equipment supplied by Grantee if service is
terminated.
iv. Credits: Credits for service will be issued no later than the customer's next
billing cycle following the determination that a credit is warranted.
f. Grantee shall provide the City with a quarterly customer service compliance
report which shall, at a minimum, demonstrate Grantee's compliance with the
terms and provisions of this Section 5, Paragraph 3 and any additional customer
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service requirements contained in this Franchise, FCC Customer Service
Obligations, and other Applicable Laws, and include a summary by category of
Subscriber complaints summarizing the number and nature of such complaints.
4. Subscriber Contracts. Grantee shall file with Commission any standard form
Subscriber contract utilized by Grantee. If no such written contract exists, Grantee shall
file with the City a document completely and concisely stating the length and terms of the
Subscriber contract offered to customers. The length and terms of any Subscriber
contract(s) shall be available for public inspection during Normal Business Hours.
5. Refund Policy. In the event a Subscriber establishes or terminates service and receives
less than a full month's service, Grantee shall prorate the monthly rate on the basis of the
number of days in the period for which service was rendered to the number of days in the
billing.
6. Late Fees. Fees for the late payment of bills shall not be assessed by Grantee until after
the service has been fully provided and, then, only if the bill remains unpaid after the
Subscriber is notified of a delinquent balance. Grantee shall comply with Applicable
Laws with respect to any assessment, charge, cost, fee or sum, however characterized,
that Grantee imposes upon a Subscriber for late payment of a bill. The City reserves the
right to enforce Grantee's compliance with Applicable Laws to the maximum extent
legally permissible.
SECTION 6. LOCAL CHANNELS AND NETWORK DROP PROVISIONS
1. Grantee Support for PEG Access. Grantee shall provide the following support for PEG
access within the Franchise Area:
a. Provision of the Channels designated in Exhibit A of this Agreement for PEG
access programming at no charge in accordance with the requirements of Exhibit
A.
b. Financial support of PEG access and Local Origination programming to the extent
specified in Exhibit A of this Agreement.
c. Continuing technical assistance and support for all PEG Channels, including line
checks, tests, audio/video adjustments, live feeds, and any other technical issues
related to the PEG Channels.
2. Subscriber Network Drops to Designated Buildings.
a. Service to Commission. Grantee will provide the Commission, free of charge and
at no cost to the Commission, complimentary service with the highest level of
standard definition (SD) and high definition (HD) Cable Service offered by
Grantee, excluding pay-per-view, pay per channel (premium) programming, high-
speed data services or newly created non -video Cable Services ("Complimentary
Commission Service"). However, Grantee must provide the Commission any
platform that includes the PEG Channels. In addition, the Grantee will also
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provide the Commission, free of charge and at no cost to the Commission, any
equipment necessary to receive these services at a minimum of seven (7)
television sets, which shall include SD, HD, video on demand (VOD), and new
platforms, boxes, devices, remotes, and digital television adapters (DTAs). If
changes in the technology used by the Grantee require additional equipment for
reception of PEG Channels the Grantee shall make such equipment available at to
up to seven (7) television sets free of charge and at no cost to the Commission.
b. Service to City Halls. Grantee shall, free of charge and at no cost to any Member
City or Commission, provide to each Member City's City Hall Complimentary
Commission Service as defined in Section 6, Paragraph 2.(a) above. The
Complimentary Commission Service for the City Halls shall include all necessary
SD and HD reception equipment for to up to seven (7) television sets at each
Member City's City Hall (if no City Hall exists, then the location used by the City
as City Hall) as identified on Exhibit B attached hereto and made a part hereof.
Exhibit B may be modified by the Commission from time to time to
accommodate changes in the City/Commission facilities locations. Grantee shall
provide the Complimentary Commission Service so long as these addresses in
Exhibit B are designated as a Qualified Living Unit. Grantee shall comply with
the obligations of this Section 6, Paragraph 2(b) even if the City Hall is served by
another franchised cable communications provider, so long as the City Hall is a
Qualified Living Unit. In the event Grantee provides Cable Service to a minimum
of thirty percent (30%) of the total number of Cable Service Subscribers within
Commission Franchise Area served by cable operators franchised within the
Commission Franchise Area, the Grantee shall then be required to ensure that the
City Halls referenced herein are Qualified living units. By way of example, the
thirty percent (30%) threshold shall be calculated in the following manner.
Company A and Company B both hold franchises to provide Cable Service in the
City. Company A has 12,000 Cable Service Subscribers and Company B has
8,000 Cable Service Subscribers - for a total of 20,000 Cable Service Subscribers
in the City. Under this example, Company A has 60% of the total Cable Service
Subscribers and Company B has 40% of the total Cable Service Subscribers.
c. Service to Designated Public Buildings. Grantee shall , free of charge and at no
cost to any Member City or Commission, provide SD Cable Service (currently
Prism Essentials) which, at a minimum, shall include a package of Channels
including all Broadcast and PEG Channels and at least one hundred (100)
additional commercial channels (but not including pay-per-view or premium
Channels, ("Complimentary Public Building Service") including all necessary SD
and HD reception equipment for to up to three (3) television sets at all other
government buildings, schools and public libraries identified on Exhibit B
attached hereto and made a part hereof. Exhibit B may be modified by the
Commission from time to time to accommodate changes in
city/school/community facilities locations. Grantee shall provide the
Complimentary Public Building Service so long as these addresses in Exhibit B
are designated as a Qualified Living Unit and no other franchised cable
communications provider is providing complimentary service at such location.
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However, the City/Commission may determine to disconnect the other franchised
cable communications provider and require Grantee to meet the Complimentary
Public Building Service obligations set forth herein, as determined in the
City's/Commission's sole discretion provided the selected location is a Qualified
Living Unit. For purposes of this Section 6, Paragraph 2 (c), "school" means all
State -accredited K-12 public and private schools. Complimentary Public Building
Service provided in accordance with this subsection may be used to distribute
Cable Services throughout such buildings provided such distribution can be
accomplished without causing Cable System disruption and general technical
standards are maintained. Such outlets may only be used for lawful purposes. If
requested by any buildings receiving Complimentary Public Building Service
under this Section 6, Paragraph 2 (c), Grantee shall provide HD service, at the
difference between the lowest retail rate offered by Grantee in the market for HD
minus the rate for SD service. At such time Grantee no longer offers
programming in standard definition to Subscribers in Commission Franchise
Area, the Grantee shall include high definition service in the Complimentary
Public Building Service free of charge and at no cost to any Member City,
Commission or designated public buildings.
d. Grantee agrees that if any broadband service is required in order to receive the
Complimentary Public Building Service or Complimentary Commission Service
obligations set forth in this Section 6, Paragraph 2 (a, b and c), Grantee will
provide such broadband service free of charge for the sole purpose of facilitating
the provision free Cable Service required by Section 6, Paragraph 2. Grantee
agrees that it will not offset, deduct or reduce its payment of past, present or
future Franchise Fees required as a result of its obligations required by Section 6,
Paragraph 2.
e. Additional Subscriber network Drops and/or outlets in any of the locations
identified on Exhibit B will be installed by Grantee at the lowest actual cost of
Grantee's time and material consistent with Applicable Law ("Actual Cost").
Grantee shall provide the Commission with a complete and detailed cost estimate
which shall include Grantee's Actual Costs for any additional Subscriber network
Drop and/or outlets. Within no more than ninety (90) Days thereafter, the
Commission shall work with institution requesting the additional Subscriber
network Drop and/or outlets and provide Grantee with written approval, if
applicable, to move forward with the additional Subscriber network Drop and/or
outlets. Grantee shall only begin work on construction of the additional
Subscriber network Drop and/or outlets once final approval is received from the
Commission, and Grantee shall complete construction within thirty (30) Days
from the date of approval. Grantee shall bill the institution requesting the
additional Subscriber network Drop and/or outlets its Actual Costs in accordance
with the agreed upon estimate. The terms and conditions of such payment shall
be between the Grantee and the institution. Alternatively, said institutions may
add outlets at their own expense, as long as such Installation meets Grantee's
standards and approval which approval shall not be unreasonably withheld.
Grantee shall have three (3) months from the date of the City designation to
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complete construction of the Drop and/or outlets unless weather or other
conditions beyond the control of Grantee requires more time.
f. Grantee agrees that it will not offset or reduce its payment of past, present or
future Franchise Fees required pursuant to Section 8, Paragraph 3 of this
Franchise, as a result of its obligation to provide the services listed in Section 6,
Paragraph 2 and Exhibit B of this Franchise.
SECTION 7. INSTITUTIONAL NETWORK (I -NET) PROVISIONS
1. Institutional Network Facilities and Capacity.
a. Grantee acknowledges that the franchise held by the existing franchised cable
communications provider within the Commission Franchise Area includes
obligations for an Institutional Network for the benefit of the Member Cities and
other institutions and to facilitate PEG uses of the I -Net. The Grantee and the
City acknowledge that the public interest would not be served by duplicating
existing I -Net obligations provided under other Cable Service franchises.
b. Grantee agrees that if any other franchised cable communications provider within
the Commission Franchise Area provides additional I -Net obligations as a
condition of a Cable Service franchise, and such condition results in additional
costs incurred by such other franchised cable communications provider, the
Grantee shall meet with the Commission upon request of the Commission to
determine a fair and equitable contribution by the Grantee to proportionately
match said I -Net obligations. If the Commission and Grantee are not able to
reach mutual agreement to resolve this issue, the Grantee and Commission agree
to enter into binding mediation to determine a fair and equitable contribution by
the Grantee to proportionately match (on a per month, per subscriber basis) said I -
Net obligations.
SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS
1. Delegated -Authority. The City may delegate to any other body or Person authority to
administer the Franchise and to monitor the performance of Grantee pursuant to the
Franchise. Grantee shall cooperate with any such delegates of the City.
2. Administration of Franchise. Commission or any designee thereof shall have
continuing regulatory jurisdiction and supervision over the System and Grantee's
operation under the Franchise. Commission, or its designee, may issue such reasonable
rules and regulations concerning the construction, operation and maintenance of the
System as are consistent with the provisions of the Franchise and Applicable Law.
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3. Franchise Fee.
a. During the term of the Franchise, Grantee shall pay quarterly to the City or its
delegates a Franchise Fee in an amount equal to five percent (5%) of its quarterly
Gross Revenues.
b. Any payments due under this provision shall be payable quarterly. The payments
shall be made on April 30th (1st qtr.) July 31st (2nd qtr.) October 31st (3r qtr.) and
January 31st (4th qtr.), together with a report showing the basis for the
computation in form and substance substantially the same as Exhibit C attached
hereto.
c. All amounts paid shall be subject to audit and recomputation by the City and
acceptance of any payment shall not be construed as an accord that the amount
paid is in fact the correct amount.
d. Any Franchise Fees owing pursuant to this Franchise which remain unpaid after
the due dates specified herein shall be delinquent and shall thereafter immediately
begin to accrue interest at twelve percent (12%) per annum or two percent (2%)
above prime lending rate as quoted by the Wall Street Journal, whichever is
greater.
4. Not Franchise Fees.
a. Grantee acknowledges and agrees that the Franchisee Fees payable by Grantee to
the City pursuant to this section shall take precedence over all other payments,
contributions, services, equipment, facilities, support, resources or other activities
to be provided or performed by Grantee pursuant to this Franchise and that the
Franchise Fees provided for in this section of the Franchise shall not be deemed to
be in the nature of a tax, and shall be in addition to any and all taxes of general
applicability and other fees and charges which do not fall within the definition of
a Franchise Fee under 47 U.S.C. § 542.
b. Grantee shall not apply or seek to apply or make any claim that all or any part of
the Franchise Fees or other payments or contributions to be made by Grantee to
the City pursuant to this Franchise shall be deducted from or credited or offset
against any taxes, fees or assessments or general applicability levied or imposed
by the City or any other governmental authority, including any such tax, fee or
assessment imposed on both utilities and cable operators or their services that
does not fall within the definition of a Franchise Fee under 47 U.S.C. § 542.
c. Grantee shall not apply or seek to apply all or any part of any taxes, fees or
assessments of general applicability levied or imposed by the City or any other
governmental authority (including any such tax, fee or assessment imposed on
both utilities and cable operators or their services) that do not fall within the
definition of a Franchise Fee under 47 U.S.C. § 542 as a deduction or other credit
from or against any of the Franchise Fees or other payments or contributions to be
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paid or made by Grantee to the City pursuant to this Franchise which shall be
deemed to be separate and distinct obligations of Grantee.
5. Access to Records. The City shall have the right to inspect, upon reasonable notice and
during Normal Business Hours, or require Grantee to provide within a reasonable time,
copies of any records maintained by Grantee which relate to System operations including
specifically Grantee's accounting and financial records related to Cable Service.
6. Reports and Maps to be Filed with the City.
a. Grantee shall prepare and furnish to the City, at the times and in the form
prescribed, such other reasonable reports with respect to Grantee's operations
pursuant to this Franchise as the City may require.
b. Subject to reasonable confidentiality protections pursuant to Section 13,
Paragraph 10 herein, Grantee shall, if required by Commission, make available to
the Commission maps, plats, and records of the location and character of all
facilities constructed, including underground facilities, and Grantee shall make
available to the Commission updates of such maps, plats and records annually if
changes have been made in the System.
7. Periodic Evaluation.
a. The City may require evaluation sessions at any time during the term of this
Franchise, but in no event more than once per calendar year, upon thirty (30)
Days written notice to Grantee.
b. Topics which may be discussed at any evaluation session may include, but are not
limited to, application of new technologies, System performance, programming
offered, access Channels, facilities and support, Subscriber rates, customer
complaints, amendments to this Franchise, judicial rulings, FCC rulings, and any
other topics the City deems relevant.
c. As a result of a periodic review or evaluation session, upon notification from the
City, Grantee shall meet with the City and undertake good faith efforts to reach
agreement on changes and modifications to the terms and conditions of the
Franchise which are legally, economically and technically feasible.
SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS
1. Performance Bond.
a. Upon the Effective Date of this Franchise and at all times thereafter, the City
reserves the right to impose on Grantee an obligation to file with Commission, on
behalf of all Member Cities, a bond in the amount of One Hundred Thousand
Dollars ($100,000.00) in a form and with such sureties as reasonably acceptable
to Commission. This bond will be conditioned upon the faithful performance by
the Grantee of its Franchise obligations and upon the further condition that in the
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event Grantee shall fail to comply with any law, ordinance or regulation
governing the Franchise, there shall be recoverable jointly and severally from the
principal and surety of the bond any damages or loss suffered by the City as a
result, including the full amount of any compensation, indemnification or cost of
removal or abandonment of any property of Grantee, plus a reasonable allowance
for attorneys' fees and costs, up to the full amount of the bond, and further
guaranteeing payment by the Grantee of claims, liens and taxes, due the City
which arise by reason of the construction, operation, or maintenance of the
System. The rights reserved by the City with respect to the bond are in addition
to all other rights the City may have under the Franchise or any other law. The
City may, from year to year, in its sole discretion, reduce the amount of the bond.
b. The City shall provide Grantee thirty (30) Days written notice of its intent to draw
on the performance bond together with the reason for such draw. Grantee shall
have the right to cure or petition for additional time.
c. The time for Grantee to correct any violation or liability, shall be extended by the
City if the necessary action to correct such violation or liability is, in the sole
determination of the City, of such a nature or character as to require more than
thirty (30) Days within which to perform, provided Grantee provides written
notice that it requires more than thirty (30) Days to correct such violations or
liability, commences the corrective action within the thirty (30) Day period and
thereafter uses reasonable diligence to correct the violation or liability.
d. In the event this Franchise is revoked by reason of default of Grantee in
accordance with the procedure set forth in Section 10, the City shall be entitled to
collect from the performance bond that amount which is attributable to any
damages sustained by the City as a result of said default or revocation.
e. Grantee shall be entitled to the return of the performance bond, or portion thereof,
as remains sixty (60) Days after the expiration of the term of the Franchise or
revocation for default thereof, provided the City has not notified Grantee of any
actual or potential damages incurred as a result of Grantee's operations pursuant
to the Franchise or as a result of said default.
f. The rights reserved to the City with respect to the performance bond are in
addition to all other rights of the City whether reserved by this Franchise or
authorized by law, and no action, proceeding or exercise of a right with respect to
the performance bond shall affect any other right the City may have.
2. Security Fund.
a. Within thirty (30) Days of the Effective Date, Grantee shall provide a letter of
credit in the amount of Fifty Thousand Dollars ($50,000) as a common security
fund for the faithful performance by it of all the provisions of this Franchise and
all other franchises which combine to make up the System (hereinafter "Security
Fund"). In compliance with all orders, permits and directions, of any Member
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City or Commission and the payment by Grantee of any claim, liens and taxes due
the City which arise by reason of the construction, operation or maintenance of
the System. Interest accrued on this deposit shall be paid to Grantee on a
quarterly basis provided that all requirements of this section have been complied
with by Grantee. Provisions shall be made to permit the Commission to withdraw
funds from the security fund. Grantee shall not use the security fund for other
purposes and shall not assign, pledge, or otherwise use the security fund as
security for any purpose.
b. In addition to recovery of any monies owed by Grantee to the City or any Person
or damages to the City or any Person as a result of any acts or omissions by
Grantee pursuant to the Franchise, the City in its sole discretion, subject to the
procedure set forth in Section 9, Paragraph 2(d) may charge to and collect from
the security fund the following penalties:
i. For failure to comply with Section 2, Paragraphs 8, 9, 10 and 12 related to
system build out, unless the City approves the delay, the penalty shall be
$500.00 per Day for each Day, or part thereof, such failure occurs or
continues.
ii. For failure to provide data, documents, reports or information or to
cooperate with the City during an application process or system review or
as otherwise provided herein, the penalty shall be $250.00 per Day for
each Day, or part thereof, such failure occurs or continues.
iii. Fifteen (15) Days following notice from the City of a failure of Grantee to
comply with construction, operation or maintenance standards, the penalty
shall be $500.00 per Day for each Day, or part thereof, such failure occurs
or continues.
iv. For failure to provide the services Grantee has proposed, including, but
not limited to, the implementation and the utilization of the PEG Channels
and the maintenance and/or replacement of the equipment and other
facilities, the penalty shall be $500.00 per Day for each Day, or part
thereof, such failure occurs or continues.
v. For Grantee's breach of any written contract or agreement with or to the
City or its designee, the penalty shall be $500.00 per Day for each Day, or
part thereof, such breach occurs or continues.
vi. For failure to comply with any of the provisions of this Franchise, or other
Applicable Laws for which a penalty is not otherwise specifically
provided pursuant to this Paragraph (b), the penalty shall be $250.00 per
Day for each Day, or part thereof, such failure occurs or continues.
c. Each violation of any provision of this Franchise shall be considered a separate
violation for which a separate penalty can be imposed.
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d. Whenever the City finds that Grantee has violated one or more terms, conditions
or provisions of this Franchise, or for any other violation contemplated in
Subparagraph b. above, a written notice shall be given to Grantee informing it of
such violation. At any time after thirty (30) Days (or such longer reasonable time
which, in the sole determination of the City, is necessary to cure the alleged
violation) following local receipt of notice, provided Grantee remains in violation
of one or more terms, conditions or provisions of this Franchise, in the sole
opinion of the City, the City may draw from the security fund all penalties and
other monies due the City from the date of the local receipt of notice.
e. Grantee may, within seven (7) Days of receipt of such written notice, notify the
City in writing that there is a dispute as to whether a violation or failure has in
fact occurred. Such written notice by Grantee to the City shall specify with
particularity the matters disputed by Grantee. The City shall hear Grantee's
dispute within sixty (60) Days and render a final decision within sixty (60) Days
thereafter.
f. If Grantee does not dispute the alleged violation or upon the determination of the
City that a violation has taken place, subject to Grantee's right to seek any
applicable judicial review, the City may draw from the security fund an amount to
cover any failure of Grantee to pay penalties accrued but unpaid after seven (7)
Days written notice of such final determination.
g.
If said security fund or any subsequent security fund delivered pursuant thereto
expires prior to thirty (30) months after the expiration of the term of this
Franchise, it shall be renewed or replaced during the term of this Franchise to
provide that it will not expire earlier than thirty (30) months after the expiration of
this Franchise. The renewed or replaced security fund shall be of the same form
and with a bank authorized herein and for the full amount stated in Paragraph a. of
this section.
h. If the City draws upon the security fund or any subsequent security fund delivered
pursuant hereto, in whole or in part, Grantee shall replace or replenish to its full
amount the same within ten (10) Days and shall deliver to the City a like
replacement security fund or certification of replenishment for the full amount
stated in Paragraph (a) of this section as a substitution of the previous security
fund. This shall be a continuing obligation for any draws upon the security fund.
i. If any security fund is not so replaced or replenished, the City may draw on said
security fund for the whole amount thereof and use the proceeds as the City
determines in its sole discretion. The failure to replace or replenish any security
fund may also, at the option of the City and/or Commission, be deemed a default
by Grantee under this Franchise. The drawing on the security fund by the City,
and use of the money so obtained for payment or performance of the obligations,
duties and responsibilities of Grantee which are in default, shall not be a waiver or
release of such default.
J.
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The collection by the City of any damages, monies or penalties from the security
fund shall not affect any other right or remedy available to the City, nor shall any
act, or failure to act, by the City pursuant to the security fund, be deemed a waiver
of any right of the City pursuant to this Franchise or otherwise.
3. Liability Insurance.
a. Upon the Effective Date, Grantee shall, at its sole expense take out and maintain
during the term of this Franchise public liability insurance with a company
licensed to do business in the state of Minnesota with a rating by A.M. Best & Co.
of not less than "A" that shall protect Grantee, Commission, the City and the
Commission's and the City's officials, officers, directors, employees and agents
from claims which may arise from operations under this Franchise, whether such
operations be by Grantee, its officials, officers, directors, employees and agents or
any subcontractors of Grantee. This liability insurance shall include, but shall not
be limited to, protection against claims arising from bodily and personal injury
and damage to property, resulting from Grantee's vehicles, products and
operations. The amount of insurance for single limit coverage applying to bodily
and personal injury and property damage shall not be less than Three Million
Dollars ($3,000,000.00). The following shall be included in the certificate:
i. The policy shall provide coverage on an "occurrence" basis.
ii. The policy shall cover personal injury as well as bodily injury.
iii. Broad form property damage liability shall be afforded.
The following endorsements shall be attached to the liability policy:
i. The City shall be listed as an additional insured on the policy.
ii. An endorsement shall be provided which states that the coverage is
primary insurance subject to the indemnification clause and that no other
insurance maintained by the Grantee will be called upon to contribute to a
loss under this coverage.
iii. Standard form of cross -liability shall be afforded.
iv. An endorsement stating that the policy shall not be canceled without thirty
(30) Days' notice of such cancellation given to the City.
b. Grantee shall submit to the City documentation of the required insurance,
including a certificate of insurance signed by the insurance agent and companies
named, as well as all properly executed endorsements.
4. Indemnification.
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a. Grantee shall indemnify, defend and hold the City and Commission, its officers,
boards, commissions, agents and employees (collectively the "Indemnified
Parties") harmless from and against any and all lawsuits, claims, causes or action,
actions, liabilities, demands, damages, judgments, settlements, disability, losses,
expenses (including reasonable attorney's fees and disbursements of counsel) and
costs of any nature that any of the Indemnified Parties may at any time suffer,
sustain or incur arising out of, based upon or in any way connected with the
Grantee's operations, the exercise of the Franchise, the breach of Grantee of its
obligations under this Franchise and/or the activities of Grantee, it subcontractor,
employees and agents hereunder. Grantee shall be solely responsible for and shall
indemnify, defend and hold the Indemnified Parties harmless from and against
any and all matters relative to payment of Grantee's employees, including
compliance with Social Security and withholdings.
b. The indemnification obligations of Grantee set forth in this Franchise are not
limited in any way by the amount or type of damages or compensation payable by
or for Grantee under Workers' Compensation, disability or other employee
benefit acts, acceptance of insurance certificates required under this Franchise or
the terms, applicability or limitations of any insurance held by Grantee.
c. The City and/or Commission does not, and shall not, waive any rights against
Grantee which it may have by reason of the indemnification provided for in this
Franchise, because of the acceptance by the City, or the deposit with the City by
Grantee, of any of the insurance policies described in this Franchise.
d. The indemnification of the City and Commission by Grantee provided for in this
Franchise shall apply to all damages and claims for damages of any kind suffered
by reason of any of Grantee's operations referred to in this Franchise, regardless
of whether or not such insurance policies shall have been determined to be
applicable to any such damages or claims for damages.
e. Grantee shall not be required to indemnify the City and Commission for
negligence or misconduct on the part of the City and the Commission or its
officials, boards, commissions, agents, or employees, including any loss claims
related to public access Channels in which the City and/or Commission
participate subject to applicable state and federal statutory limitations.
f. Grantee shall contemporaneously with this Franchise execute an Indemnity
Agreement in a form acceptable to the City, attached hereto as Exhibit D, which
shall indemnify, defend and hold the City harmless for any claim for injury,
damage, loss, liability, cost or expense, including court and appeal costs and
reasonable attorneys' fees or reasonable expenses arising out of the actions of the
City in granting this Franchise. This obligation includes any claims by another
franchised cable operator against the City that the terms and conditions of this
Franchise are less burdensome than another franchise granted by the City or that
this Franchise does not satisfy the requirements of applicable federal, state, or
local law(s).
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5. Grantee's Insurance. Grantee shall not commence any Cable System reconstruction
work or permit any subcontractor to commence work until all insurance required under
this Franchise has been obtained. Said insurance shall be maintained in full force and
effect until the expiration of this Franchise.
SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF
FRANCHISE
1. City's Right to Revoke.
a. In addition to all other rights which the City has pursuant to law or equity, the
City reserves the right to commence proceedings to revoke, terminate or cancel
this Franchise, and all rights and privileges pertaining thereto, if it is determined
by the City that:
i. Grantee has violated material provisions(s) of this Franchise; or
ii. Grantee has attempted to evade any of the provisions of the Franchise; or
iii. Grantee has practiced fraud or deceit upon the City.
b. The City may revoke this Franchise without the hearing otherwise required herein
if Grantee is adjudged to be bankrupt.
2. Procedures for Revocation.
a. The City and/or Commission shall provide Grantee with written notice of a cause
for revocation and the intent to revoke and shall allow Grantee thirty (30) Days
subsequent to receipt of the notice in which to correct the violation or to provide
adequate assurance of performance in compliance with the Franchise. In the
notice required therein, the City and/or Commission shall provide Grantee with
the basis of the revocation.
b. Grantee shall be provided the right to a public hearing affording due process
before the City Council and/or Commission prior to the Effective Date of
revocation, which public hearing shall follow the thirty (30) Day notice provided
in subparagraph (a) above. The City and/or Commission shall provide Grantee
with written notice of its decision together with written findings of fact
supplementing said decision.
c. Only after the public hearing and upon written notice of the determination by the
City to revoke the Franchise may Grantee appeal said decision with an
appropriate state or federal court or agency.
d. During the appeal period, the Franchise shall remain in full force and effect unless
the term thereof sooner expires or unless continuation of the Franchise would
endanger the health, safety and welfare of any Person or the public.
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3. Abandonment of Service. Grantee may not abandon the System or any portion thereof
without having first given three (3) months written notice to the City and/or Commission.
Grantee shall at all times comply with Minnesota Rules Chapter 7819 regarding any
abandonment of the System. Grantee may not abandon the System or any portion thereof
without compensating the City for damages resulting from the abandonment, including
all costs incident to removal of the System.
4. Removal after Abandonment, Termination or Forfeiture.
a. In the event of termination or forfeiture of the Franchise or abandonment of the
System, the City shall have the right to require Grantee to remove all or any
portion of the System, used exclusively for the provision of Cable Service, from
all Rights -of -Way and public property within the City consistent with Minnesota
Rules Chapter 7819.
b. If Grantee has failed to commence removal of System, if used exclusively for the
provision of Cable Service, or such part thereof as was designated by the City,
within thirty (30) Days after written notice of the City's demand for removal
consistent with Minnesota Rules Chapter 7819, is given, or if Grantee has failed
to complete such removal within twelve (12) months after written notice of the
City's demand for removal is given, the City shall have the right to apply funds
secured by the security fund and performance bond toward removal and/or
declare all right, title, and interest to the System, to the extent it is used
exclusively for the provision of Cable Service, to be held by the City with all
rights of ownership including, but not limited to, the right to operate the System
or transfer the System to another for operation by it.
5. Sale or Transfer of Franchise.
a. No sale or transfer of the Franchise, or sale, transfer, or fundamental corporate
change of or in Grantee, including, but not limited to, a fundamental corporate
change in Grantee's parent corporation or any entity having a controlling interest
in Grantee, the sale of a controlling interest in the Grantee's assets, a merger,
including the merger of a subsidiary and parent entity, consolidation, or the
creation of a subsidiary or Affiliate entity, shall take place until a written request
has been filed with the City requesting approval and such approval has been
granted or deemed granted; provided, however, that said approval shall not be
required where Grantee grants a security interest in its Franchise and/or assets to
secure an indebtedness.
b. Any sale, transfer, exchange or assignment of stock in Grantee, or Grantee's
parent corporation or any other entity having a controlling interest in Grantee, so
as to create a new controlling interest therein, shall be subject to the requirements
of this Section 10, Paragraph 5. The term "controlling interest" as used herein is
not limited to majority stock ownership, but includes actual working control in
whatever manner exercised.
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c. The Grantee shall file, in addition to all documents, forms and information
required to be filed by Applicable Law, the following:
i. All contracts, agreements or other documents that constitute the proposed
transaction and all exhibits, attachments, or other documents referred to
therein which are necessary in order to understand the terms thereof
(Confidential, trade, business, pricing or marketing information, or
information not otherwise publicly available may be redacted) pursuant to
the Procedures for Handling Trade Secret and Privileged Data to be
adopted by the Commission.
ii. A list detailing all documents filed with any state or federal agency related
to the transaction including, but not limited to, the MPUC, the FCC, the
FTC, the FEC, the SEC or MNDOT. Upon request, Grantee shall provide
the City with a complete copy of any such document.
d. The City shall have such time as is permitted by federal law in which to review a
transfer request.
e. Grantee shall reimburse the City for all reasonable legal, administrative, and
consulting costs and fees associated with the City's review of any request to
transfer. Nothing herein shall prevent Grantee from negotiating partial or
complete payment of such costs and fees by the transferee. Grantee may not
itemize any such reimbursement on Subscriber bills, but may recover such
expenses in its Subscriber rates if permitted by Applicable Laws.
f. In no event shall a sale, transfer, corporate change, or assignment of ownership or
control pursuant to this Section 10, Paragraph 5 (a) or (b), be approved without
the transferee becoming a signatory to this Franchise and assuming all rights and
obligations thereunder, and assuming all other rights and obligations of the
transferor to the City including, but not limited to, any adequate guarantees or
other security instruments provided by the transferor.
g.
In the event of any proposed sale, transfer, corporate change, or assignment
pursuant to this Section 10, Paragraph 5 (a) or (b), the City shall have the right to
purchase the System for the value of the consideration proposed in such
transaction. The City's right to purchase shall arise upon the City's receipt of
notice of the material terms of an offer or proposal for sale, transfer, corporate
change, or assignment, which Grantee has accepted. Notice of such offer or
proposal must be conveyed to the City in writing and be separate from any
general announcement of the transaction.
h. The City shall be deemed to have waived its right to purchase the System
pursuant to this section only in the following circumstances:
i. If the City does not indicate to Grantee in writing, within sixty (60) Days
of receipt of written notice of a proposed sale, transfer, corporate change,
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or assignment as contemplated in Section 10, Paragraph 5 (g) above its
intention to exercise its right of purchase; or
ii. It approves the assignment or sale of the Franchise as provided within this
section.
i. No Franchise may be transferred if the City determines Grantee is in
noncompliance with the Franchise unless an acceptable compliance program has
been approved by the City. The approval of any transfer of ownership pursuant to
this section shall not be deemed to waive any rights of the City to subsequently
enforce noncompliance issues relating to this Franchise even if such issues
predated the approval, whether known or unknown to the City.
J.
Upon notice to Commission, Grantee may undertake legal changes necessary to
consolidate the corporate or partnership structures of its Minnesota Systems
provided there is no change in the controlling interests which could materially
alter the financial responsibilities for the Grantee and such changes do not
otherwise trigger review under Minnesota Statutes Section 238.083.
SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS
1. Discriminatory Practices Prohibited. Grantee shall not deny service, deny access, or
otherwise discriminate against Subscribers or general citizens on the basis of race, color,
religion, national origin, sex, age, status as to public assistance, or disability. Grantee
shall comply at all times with all other Applicable Laws relating to nondiscrimination.
2. Subscriber Privacy. Grantee shall, at all times, comply with Applicable Laws regarding
Subscriber privacy, including but not limited to 47 U.S.C. § 551.
SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS
1. Unauthorized Connections or Modifications Prohibited. It shall be unlawful for any
firm, Person, group, company, corporation, or governmental body or agency, without the
express consent of the Grantee, to make or possess, or assist anybody in making or
possessing, any unauthorized connection, extension, or division, whether physically,
acoustically, inductively, electronically or otherwise, with or to any segment of the
System or receive services of the System without Grantee's authorization.
2. Removal or Destruction Prohibited. It shall be unlawful for any firm, Person, group,
company, or corporation to willfully interfere, tamper, remove, obstruct, or damage, or
assist thereof, any part or segment of the System for any purpose whatsoever, except for
any rights the City and the Commission may have pursuant to this Franchise or its police
powers.
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SECTION 13. MISCELLANEOUS PROVISIONS
1. Franchise Renewal. Any renewal of this Franchise shall be performed in accordance
with Applicable Law. The term of any renewed Franchise shall be limited to a period no
longer than allowed by Applicable Law.
2. Work of Contractors and Subcontractors. Work by contractors and subcontractors is
subject to the same restrictions, limitations and conditions as if the work were performed
by Grantee. Grantee shall be responsible for all work performed by its contractors and
subcontractors, and others performing work on its behalf as if the work were performed
by it and shall ensure that all such work is performed in compliance with this Franchise,
the City Code and other Applicable Law, and shall be jointly and severally liable for all
damages and correcting all damage caused by them. It is Grantee's responsibility to
ensure that contractors, subcontractors or other Persons performing work on Grantee's
behalf are familiar with the requirements of this Franchise, the City Code and other
Applicable Laws governing the work performed by them.
3. Amendment of Franchise Ordinance. Grantee and the City may mutually agree, from
time to time, to amend this Franchise. Such written amendments may be made
subsequent to a review session pursuant to Section 8, Paragraph 7 or at any other time if
the City and Grantee agree that such an amendment will be in the public interest or if
such an amendment is required due to changes in federal, state or local laws; provided,
however, nothing herein shall restrict the City's exercise of its police powers.
4. Force Majeure. In the event that either party is prevented or delayed in the performance
of any of its obligations, under this Franchise by reason of acts of God, floods, fire,
hurricanes, tornadoes, earthquakes, or other unavoidable casualties, insurrection, war,
riot, vandalism, strikes, sabotage, or any other similar event beyond the reasonable
control of that party, it shall have a reasonable time under the circumstances to perform
such obligation under this Franchise, or to procure a substitute for such obligation to the
reasonable satisfaction of the other party.
5. Compliance with Federal, State and Local Laws.
a. The terms of this Franchise shall govern Grantee's performance under this
Franchise except where federal or state laws or regulation preempt such local
regulation. In such cases the applicable federal or state laws or regulations shall
govern Grantee's performance under this Franchise.
b. If any federal or state law or regulation shall require or permit the City or Grantee
to perform any service or act or shall prohibit the City or Grantee from
performing any service or act which may be in conflict with the terms of this
Franchise, then as soon as possible following knowledge thereof, either party
shall notify the other of the point in conflict believed to exist between such law or
regulation. Grantee and the City shall conform to state laws and rules regarding
cable communications not later than one (1) year after they become effective,
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unless otherwise stated, and conform to federal laws and regulations regarding
cable as they become effective.
c. If the Commission and Grantee do not agree that a material provision of this
Franchise is affected by such federal or state law or regulation, then either the
Commission or Grantee shall have the right to seek review of the provision in
question as permitted by Applicable Laws.
d. If any term, condition or provision of this Franchise or the application thereof to
any Person or circumstance shall, to any extent, be held to be invalid or
unenforceable, the remainder hereof and the application of such term, condition or
provision to Persons or circumstances other than those as to whom it shall be held
invalid or unenforceable shall not be affected thereby, and this Franchise and all
the terms, provisions and conditions hereof shall, in all other respects, continue to
be effective and complied with provided the loss of the invalid or unenforceable
clause does not substantially alter the agreement between the parties. In the event
such law, rule or regulation is subsequently repealed, rescinded, amended or
otherwise changed so that the provision which had been held invalid or modified
is no longer in conflict with the law, rules and regulations then in effect, said
provision shall thereupon return to full force and effect and shall thereafter be
binding on Grantee and the City.
6. Non -enforcement by the City. Grantee shall not be relieved of its obligations to comply
with any of the provisions of this Franchise by reason of any failure or delay of the City
to enforce prompt compliance. The City may only waive its rights hereunder by
expressly so stating in writing. Any such written waiver by the City of a breach or
violation of any provision of this Franchise shall not operate as or be construed to be a
waiver of any subsequent breach or violation.
7. Rights Cumulative. All rights and remedies given to the City by this Franchise or
retained by the City herein shall be in addition to and cumulative with any and all other
rights and remedies, existing or implied, now or hereafter available to the City, at law or
in equity, and such rights and remedies shall not be exclusive, but each and every right
and remedy specifically given by this Franchise or otherwise existing or given may be
exercised from time to time and as often and in such order as may be deemed expedient
by the City and the exercise of one or more rights or remedies shall not be deemed a
waiver of the right to exercise at the same time or thereafter any other right or remedy.
8. Grantee Acknowledgment of Validity of Franchise.
a. Grantee acknowledges that it has had an opportunity to review the terms and
conditions of this Franchise and that under current law Grantee believes that said
terms and conditions are not unreasonable or arbitrary, and that Grantee believes
the City has the power to make the terms and conditions contained in this
Franchise. Except as provided in Section 13, Paragraph 4 of this Franchise,
Grantee agrees that it will not, at any time, set up against the City or the
Commission in any claim or proceeding, any condition or term of the Franchise as
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unreasonable, arbitrary, void as of the Effective Date of this Franchise or that the
City or the Commission had no power or authority to make such term or
condition.
b. In the case of any dispute or question as to the meaning, interpretation, or
application of any term, provision, or condition of this Franchise, the City, in its
reasonable discretion, shall promptly resolve such dispute or question.
9. Commission. In the event the City lawfully withdraws from the Commission, any reference
to the Commission in this Franchise shall thereafter be deemed a reference to the City and the
rights and obligations related thereto shall, where possible, accrue to the City pursuant to a
transition agreement to be negotiated at such time by and between the City and the
Commission.
10. Confidential and Trade Secret Information. The Commission shall follow, all
Applicable Laws and procedures for protecting any confidential and trade secret
information of Grantee that may be provided to Commission. Grantee shall not be
relieved of its obligation to provide information or data required under this Franchise
simply because the Commission may not be able to guarantee its confidentiality. Grantee
acknowledges that the Commission shall at all times comply with the Minnesota Data
Practices Act ("MDPA") related to the release of information and nothing herein shall be
read to modify the Commission's obligations under the MDPA.
SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND
EXHIBITS
1. Publication, Effective Date. This Franchise shall be published in accordance with
applicable local and Minnesota law. The Effective Date of this Franchise shall be the
date set forth in the definition Section 1, Paragraph 2 (o).
2. Acceptance.
a. Grantee shall accept this Franchise within thirty (30) Days of its enactment by the
City Council, unless the time for acceptance is extended by the City. Such
acceptance by the Grantee shall be deemed the grant of this Franchise for all
purposes. In the event acceptance does not take place, or should all ordinance
adoption procedures, timelines and payments not be completed, this Franchise and
any and all rights granted hereunder to Grantee shall be null and void. The
Commission's "Notice of Intent to Consider an Application for a Franchise"
("Notice") provided, consistent with Minn. Stat. 238.081 subd. 8, that applicants
would be required to reimburse the Commission for all necessary costs of
processing a cable communications franchise. Grantee submitted an application
fee with its application to the Commission. The Notice further provided that any
unused portion of the application fee would be returned and any additional fees
required to process the application and franchise, beyond the application fee,
would be assessed to the successful applicant. The Grantee shall therefore submit
to the Commission at the time of acceptance of this Franchise, a check made
payable to the Commission for all additional fees and costs incurred by the
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Commission. Within thirty (30) Days of each Member Cities' approval, the
Commission shall provide Grantee with a letter specifying such additional costs.
The Commission shall provide Grantee with a letter specifying such additional
costs following approval of this Franchise by each Member City.
b. Upon acceptance of this Franchise, Grantee and the City shall be bound by all the
terms and conditions contained herein.
c. Grantee shall accept this Franchise in the following manner:
i. This Franchise will be properly executed and acknowledged by Grantee
and delivered to the City.
ii. With its acceptance, Grantee shall also deliver any grant payments,
performance bond and insurance certificates, and guaranties, as required
herein that have not previously been delivered.
Passed and adopted this 15th day of March, 2016.
page 103
ATTEST: CITY OF MENDOTA HEIGHTS, MINNESOTA
By: By:
SIGNATURE SIGNATURE
Name: Lorri Smith Name: Sandra Krebsbach
PRINTED/TYPED NAME PRINTED/TYPED NAME
Its: City Clerk Its: Mayor
TITLE TITLE
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK;
SIGNATURE PAGE FOLLOWS]
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ACCEPTED: This Franchise is accepted, and we agree to be bound by its terms and conditions.
QWEST BROADBAND SERVICES, INC.
D/B/A CENTURYLINK
Date: , 2016 By:
SIGNATURE
Name:
Its:
SWORN TO BEFORE ME this
day of , 2016.
NOTARY PUBLIC
PRINTED/TYPED
TITLE
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EXHIBIT A
GRANTEE COMMITMENT TO PEG ACCESS FACILITIES AND EQUIPMENT
1. Public, Educational and Government (PEG) Access Channels.
a. Upon the Effective Date of this Franchise, Grantee shall make seven (7) video
Channels available exclusively for noncommercial PEG use ("PEG Channels").
The PEG Channels shall be dedicated for PEG use for the term of the Franchise.
SD PEG Channels shall be carried on Channels 14, 15, 16, 18, 19, 20, 21 on
Grantee's Cable System unless the parties mutually agree to PEG Channel
relocation.
b. Grantee shall configure the Cable System to allow PEG programming on the PEG
Channels to be discretely distributed (Narrowcast) to individual Member Cities
via designated node sites. The City and Grantee acknowledge that programming
may not be discretely distributed to one hundred percent (100%) of the City due
to the location of particular node sites and configuration of the Cable System.
c. PEG Channels will be grouped with like Channels (for example SD Channel line-
up and HD Channel line-up) in the lowest cost SD and HD tier, and will be
located adjacent to broadcast channels and other basic mainstream cable/satellite
Channels.
d. After January 1, 2016 and with at least one hundred eighty (180) Day advance
written notice to Grantee, the City shall have the right to require that Grantee
carry one (1) of the PEG Channels in both SD and HD format equivalent to the
broadcast channels and commercial cable/satellite Channels carried by the
Grantee on its Cable System. The City shall have the sole discretion to determine
which of its Channels will be provided in HD without the addition of mandates or
content restrictions imposed by Grantee. HD resolution will be equivalent to the
resolution used in Grantee's HD tier. Grantee will continue to carry the PEG
Channels in SD format in addition to HD format as long as there are SD Channels
in Grantee's Basic Cable Service tier. If Grantee discontinues carriage of SD
Channels, all of the PEG Channels shall be carried in HD format.
e. After January 1, 2017 and with at least one hundred eighty (180) Day advance
written notice to Grantee (which notice may be sent no sooner than July 1, 2016),
the City shall have the right to require that Grantee carry up to two (2) additional
PEG Channels (for a total of three (3) PEG Channels) in both SD and HD in
accordance with the technical and other requirements of subparagraph 1 (d)
above.
f. After January 1, 2018 and with at least one hundred eighty (180) Day advance
written notice to Grantee (which notice may be sent no sooner than July 1, 2017),
the City shall have the right to require that Grantee carry up to two (2) additional
PEG Channels (for a total of five (5) PEG Channels) in both SD and HD in
accordance with the technical and other requirements of subparagraph (d) above.
g.
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After January 1, 2019 and with at least one hundred eighty (180) Day advance
written notice to Grantee (which notice may be sent no sooner than July 1, 2018),
the City shall have the right to require that Grantee carry up to two (2) additional
PEG Channels (for a total of seven (7) PEG Channels) in both SD and HD in
accordance with the technical and other requirements of subparagraph (d) above.
2. NDC4 Mosaic Channel Alternative. In lieu of the requirements set forth in this Exhibit
A paragraph 1 (a -g) above, Grantee may instead elect to comply with the following
requirements which shall be met no later than one hundred twenty (120) Days from the
date the Commission adopts a resolution recommending approval of the Franchise by the
Member Cities.
a. Grantee shall provide seven (7) PEG Channels in both HD and SD and shall not
reduce the number of PEG Channels unless directed by the Commission.
b. Grantee shall use designated Channels in its Channel lineup as a means to provide
ease of access by Subscribers to the group of PEG Channels placed consecutively
on Channel numbers as agreed upon herein. This use of one (1) or more Channels
to access the group of seven (7) PEG Channels required under this Franchise shall
be referred to as the "NDC4 Mosaic Channel." The NDC4 Mosaic Channel shall
display the group of PEG Channels on a single Channel screen and serve as a
navigation tool for Subscribers. The NDC4 Mosaic Channel shall allow
Subscribers to navigate directly from a designated Channel to any of the seven (7)
PEG Channels requested in a single operation (with one click, or, in one step)
without any intermediate steps to a chosen PEG Channel in the group.
c. Grantee shall use Channel 31 as the SD NDC4 Mosaic Channel and Channel 1031
as the HD NDC4 Mosaic Channel to access the PEG Channels required under this
Franchise. The group of seven (7) consecutive PEG Channels residing at higher
Channel numbers will retain Channel names and identity numbers 14-21 for
marketing purposes, unless approved by the Commission, and will have the final
two (2) digits matching with the current Basic Cable Service tier Channels 14-21.
The designated Channels shall be as follows: 8414, 8415, 8416, 8418, 8419, 8420,
and 8421 for SD PEG Channels and 8914, 8915, 8916, 8918, 8919, 8920, and
8921 for HD PEG Channels. Grantee shall not include any other programming or
Channels on the NDC4 Mosaic Channel unless the Commission provides advance
written consent.
d. When using the NDC4 Mosaic Channel, Subscribers shall be directed to the
requested PEG Channel in HD format if appropriate to the Subscriber's level of
service; otherwise, the Subscriber shall be directed to the SD PEG Channel
e. Grantee shall consult with the Commission to determine how the PEG Channel
information is displayed on the NDC4 Mosaic Channel The NDC4 Mosaic
Channel shall have the same video and audio Signal strength, Signal quality, and
navigational functionality equivalent to every other commercial Mosaic Channel
carried by the Grantee on its Cable System.
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f. As the Grantee innovates and improves the functionality and interactivity and/or
adds capability for personalization of the Mosaics, the Grantee will provide the
same navigational, interactive and personalization features for the NDC4 Mosaic
Channel as are available to Subscribers for every other commercial Mosaic
Channel. (For example, if a Subscriber has the capability to add selected sports or
news Channels to the Sports or News Mosaics, then the Subscriber shall also be
able to add a PEG Channel to any of the Mosaics.)
g.
If through technology changes or innovation in the future, the Grantee
discontinues the use of Mosaic presentations for other Channels including
broadcast channels and commercial cable/satellite Channels (such as the News
Mosaic, the Sports Mosaic, and/or the Children's Mosaic), then Grantee will
either continue to support the NDC4 Mosaic Channel as determined in the
Commission's sole discretion or reach mutual agreement with the Commission
regarding how to accommodate the NDC4 Mosaic Channel to ensure PEG
Channels are treated no less favorably than commercial channels provided by
Grantee. In all cases Grantee shall maintain Channels 31and 1031 for use by the
Commission for PEG purposes.
3. PEG Technical Quality.
a. The City may not request additional Channel capacity beyond the seven (7) PEG
Channels in both SD and HD except in accordance with Applicable Laws. The
City shall be responsible for all programming requirements, including but not
limited to scheduling, playback, training, staffing, copyright clearances, and
equipment, maintenance and repair, on the PEG Channels.
b. The Grantee shall provide all PEG Channels on the Basic Cable Service tier or the
lowest cost tier of service throughout the life of the Franchise. Grantee shall at all
times provide the PEG Channels to any Person who subscribes to any level of
cable Video Programming service, and otherwise in accordance with Applicable
Laws. The Grantee shall not charge for use of the PEG Channels, equipment,
facilities or services.
c. The City shall establish rules and procedures for PEG Channel scheduling in
accordance with Section 611 of the Cable Act (47 U.S.C. § 531).
d. Grantee will deliver PEG Channels to Subscribers with video and audio Signal
strength, signal quality, and functionality equivalent to every other broadcast
channel and commercial cable/satellite channels carried by the Grantee on its
Cable System. Grantee agrees that Subscribers will not be required to obtain or
pay for any additional equipment required solely to receive the PEG Channels.
e. Grantee shall carry all components of the SD and HD PEG access signals
provided by the City and Commission, including but not limited to, closed
captioning, multichannel television sound, Channel recording or DVR capability,
last Channel capability, active format description, and any captioning or text
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signals which are inserted by Commission or passed -through by Commission on
its PEG Channels and other elements associated with the PEG programming
Grantee shall not be required to carry a PEG Channel in a higher quality format
than that of the signal delivered to Grantee, but Grantee shall distribute all PEG
Channels without degradation.
f. The Commission shall provide PEG Channels audio and video signals to the
Grantee in a format approved by Commission. Grantee shall obtain PEG
Channels at point of origin chosen and approved by Commission (currently the
master control room located at 5845 Blaine Avenue, Inver Grove Heights, MN).
g.
All PEG Channels must be receivable by Subscribers without special expense in
addition to the expense paid to receive commercial services the Subscriber
receives. The City and Commission acknowledge that HD programming may
require the viewer to have special viewer equipment (such as an HDTV and an
HD -capable digital device/receiver), but any Subscriber who can view an HD
signal delivered via the Cable System at a receiver shall also be able to view the
HD PEG Channels at that receiver, without additional charges or equipment. By
agreeing to make PEG Channels available in HD format, Grantee is not agreeing
to provide free HD equipment to Subscribers, or to modify its equipment or
pricing policies in any manner The City and Commission acknowledge that not
every Subscriber may be able to view HD PEG programming (for example,
because they do not have an HDTV in their home or have chosen not to take an
HD -capable receiving device from Grantee or other equipment provider) or on
every television in the home. Grantee agrees that any Subscriber shall be able to
view all PEG Channels in SD on any equipment that is not HD capable.
4. Metro Cable Network Channel 6. In addition to the seven (7) PEG Channels Grantee is
required to provide herein, Grantee shall also designate the standard VHF Channel 6 for
uniform regional Channel usage as currently provided by "Metro Cable Network Channel
6" to the extent and under the terms required by Minn. Stat. § 238.43.
5. PEG Operations. The Commission and the City may, in their sole discretion, negotiate
agreements with neighboring jurisdictions served by the same Cable System, educational
institutions or others to share the expenses of supporting the PEG Channels.
6. Title to PEG Equipment. The City shall retain title to all PEG equipment and facilities
purchased or otherwise acquired by the City.
7. PEG Equipment. The Grantee shall provide, at the Grantee's sole cost and expense, all
modulators and any other necessary equipment to permit full and practical utilization
from the Grantee's headend downstream, by conventional technical means, of each PEG
Channel
8. Relocation of PEG Channels.
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a. Grantee shall not relocate any PEG Channel to a different Channel number unless
specifically required by Applicable Laws or unless otherwise agreed to in writing
by the Commission. Grantee shall provide at least sixty (60) Days prior written
notice of such relocation to Subscribers and the Commission. In the event the
Commission agrees in writing to a PEG Channel relocation, the PEG Channels
will be located within reasonable proximity to other broadcast Channels,
excluding pay-per-view programming offered by Grantee in the City.
b. Grantee agrees not to encrypt the PEG Channels differently than other
commercial Channels available on the Cable System.
c. Grantee shall reimburse the Commission for reasonable costs caused by such
relocation, including (1) logo, business card or signage changes, (2) equipment
modifications necessary to effect the change at the programmer's production or
receiving facility, or (3) reasonable constituency notification costs.
9. Promotion of PEG Access. During the term of the Franchise the Grantee shall comply
with one of the following requirements, (a) or (b) below. Grantee shall at all times
comply with all of the standards and requirements set forth in this paragraph 9 (c -g)
below during the term of this Franchise.
a. Upon sixty (60) Days' notice from the Commission, the Grantee shall twice
annually, free of charge and at no cost to the Commission, print and mail a post
card promoting the PEG programming to Grantee's Subscribers in the
Commission Franchise Area. The post card shall be designed by the Commission
and shall conform to the Grantee's standards and policies for size and weight. Any
post card denigrating the Grantee, its service or its programming is not permitted.
b. Grantee shall allow Commission to place bill stuffers in Grantee's Subscriber
statements at a cost to Commission not to exceed Grantee's actual cost (with no
markup), no less frequently than twice per year upon the written request of
Commission and at such times that the placement of such materials would not
materially and adversely affect Grantee's cost for the production and mailing of
such statements. Commission agrees to pay Grantee in advance for the actual cost
of such bill stuffers.
c. Grantee shall distribute, free of charge and at no cost to Commission, through
advertising insertion equipment, thirty (30) second promotional and awareness
commercial spots, on a "run of schedule" basis in unsold time slots, produced at
Commission's cost and submitted by Commission once each month in a format
compatible with such advertising insertion equipment. Grantee shall provide
monthly ad insertion affidavits in the same format provided to commercial
advertising clients.
d. Grantee shall use its best efforts to make available PEG access information
provided by Commission in Subscriber packets at the time of Installation and at
the counter in the Grantee's business office serving the Franchise Area.
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e. If the Grantee offers localized information on its website specific to the Twin
Cities or the Commission Franchise Area, then the Grantee will allow the
Commission to place its web link and/or other information about Commission
PEG programming and PEG Channels on Grantee's website in a format mutually
acceptable to the Commission and the Grantee.
f. Grantee shall include the PEG Channels and programming information in any
electronic/interactive program guide, program listings, search options, record and
DVR options, navigation systems and search functions accessible through
Grantee's Set Top Box and remote controls, or their successor technologies,
provided to its Subscribers, including, but not limited to on-screen, print and on-
line program guides which include channel and program listings of any local
broadcast channels. Grantee shall bear all capital, implementation and operating
costs to include the basic programming information in the programming guides
for the PEG Channels, free of charge and at no cost to the City or Commission.
The City and Commission shall have the right to pay for more enhanced program
information to be made available on the programming guides including the
Channel name and logo/icon, program titles scheduled in thirty (30) minute time
blocks, program descriptions, information needed for search & record features,
and any other information similarly provided for other broadcast channels and
commercial cable/satellite Channels. Grantee shall, to the maximum extent
possible, make available to the City and Commission any price discounts Grantee
may have in place with third party vendors that offer such programming guide
services.
g.
Throughout the term of the Franchise, and as the term may be extended, Grantee
shall provide the Commission high speed internet service with a modem and up to
five (5) static IP addresses, with Grantee's highest available upstream bandwidth
("Commission Broadband Service"), which may be used by the Commission for
public use and various PEG purposes as determined in Commission's sole
discretion. The Commission Broadband Service shall be provided by Grantee free
of charge and at no cost to the Commission for both the monthly service and
equipment.
10. PEG Support. In addition to satisfying the other requirements of this Franchise, Grantee
is required to provide the following additional PEG support funding to the Commission:
a. The PEG fee shall be One and 77/100 Dollars ($1.77) per Subscriber per month
commencing on the Effective Date and continuing for the duration of this
Franchise ("PEG Fee"). Payments pursuant to this subsection shall be payable
quarterly to the Commission (or its designated access entity), on the same
schedule as Franchise Fee payments. The PEG Fee may be unilaterally increased
no more than once each calendar year in the Commission's sole discretion, upon
sixty (60) Days advance written notice to Grantee, annually compounded from the
Effective Date of this Franchise, based on the increase from the Minneapolis/St.
Paul Consumer Price Index for all consumers and/or three percent (3%) each year,
whichever is lower. In no event shall the PEG Fee paid by Grantee be in excess
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of the per Subscriber, per month fee paid by the existing cable communications
provider.
b. Upon sixty (60) Days' written notice to Grantee, Commission may elect to
unilaterally change the PEG Fee to a different dollar amount per Subscriber per
month or change the format to a percentage of Gross Revenues up to two and one-
half percent (2.5%) of Gross Revenues. In no event shall the PEG Fee be
assessed in an amount or manner different from that imposed upon the existing
cable communications provider. In the event the existing cable communications
provider agrees to a higher, or lower, PEG Fee, Grantee will increase, or decrease,
its PEG Fee upon sixty (60) Days' written notice from the Commission. The PEG
Fee may be used for operational or capital support of PEG programming as
determined in the Commission's sole discretion. In no event shall the PEG Fee
paid by Grantee be in excess of the per Subscriber, per month fee paid by the
existing cable communications provider.
c. Any PEG support amounts owing pursuant to this Franchise which remain unpaid
after the dates specified herein shall be delinquent and shall thereafter accrue
interest at twelve percent (12%) per annum or the prime lending rate as quoted by
the Wall Street Journal on the day the payment was due plus two percent (2%),
whichever is greater.
d. Grantee agrees that financial support for PEG arising from or relating to the
obligations set forth in this section shall in no way modify or otherwise affect
Grantee's obligations to pay Franchise Fees to Commission. Grantee agrees that
although the sum of Franchise Fees plus the payments set forth in this section may
total more than five percent (5%) of Grantee's Gross Revenues in any twelve (12)
month period, the additional commitments shall not be offset or otherwise
credited in any way against any Franchise Fee payments under this Franchise.
Grantee and the City agree that the PEG Fee referenced in this Exhibit A will not
be deemed to be "Franchise Fees" within the meaning of Section 622 of the Cable
Act (47 U.S.C. §542), and such obligations shall not be deemed to be (i)
"payments in kind" or any involuntary payments chargeable against the Franchise
Fees to be paid to the City by Grantee pursuant to Section 8 hereof or (ii) part of
the Franchise Fees to be paid to the City by Grantee pursuant to Section 8 hereof.
11. Technical Support.
a. Throughout the Franchise term, playback from the PEG Channels must be
configured so that the Commission or its designated entity is able to use its own
independent automated playback facilities, located at the premises of its choice.
Any master control that Grantee intends to use for its operations must be located
outside the space occupied by a designated entity, unless the parties agree
otherwise. The playback facility must be configured so as to permit the
designated entity to program all Channels for which it is responsible for content,
on a live or pre-recorded basis. Grantee shall continue to have access to the
designated entity's master control so that it can conduct necessary maintenance
page 112
and repair affecting Grantee's network or equipment upon reasonable notice or at
any time in the event of emergencies, at no cost to the City or Commission.
b. Grantee shall provide a local (Twin Cities) response phone number, cell number,
and e-mail address for local (Twin Cities) technical support staff who are trained
to effectively respond to and resolve PEG related issues, who will respond to
urgent tech -support requests within fifteen (15) minutes and non -urgent tech
support requests within three (3) hours or forty-eight (48) hours, depending upon
the response time needed. Commission technical staff will determine what
requests are urgent or non -urgent. Commission agrees to use best efforts to verify
that the issue is not on the Commission's side of the demarcation point before a
call is made to Grantee.
c. Grantee shall provide, at no cost to Commission, six (6) live feeds (SD or HD as
determined by the Commission) per year from the Commission's offices to the
offices of Metro Cable Network Channel 6. Such feeds shall connect directly to
Metro Cable Network Channel 6 master control. Grantee shall have the option to
meet this obligation via the interconnection obligations set forth in Section 13 of
this Exhibit A to the extent the interconnection reaches the Metro Cable Network
Channel 6 playback location.
d. Grantee and the Commission shall, on or before June 1, 2016, meet to mutually
agree on two locations to televise live PEG programming from two (2) locations,
to provide live remote feeds back to the Commission's master control and other
PEG related uploads/downloads and data transfer. Grantee shall provide two (2)
locations sufficient capacity to transmit live, uncompressed SD and HD audio and
video signals back to the Commission's master control. No more than once
annually, upon ninety (90) Days advance written notice to Grantee, the
Commission shall have the right to request modification to the locations (a total of
no more than five (5) modifications within a five (5) year term) provided that
Grantee and Commission mutually agree upon such new location(s).
e. To the extent technically feasible on Grantee's System, Grantee shall: 1) provide,
free of charge and at no cost to Commission, live feeds for PEG access and Local
Origination programming from any location in the Commission's Franchise Area
that is passed by the Grantee's fiber optic network. The Commission shall
provide a minimum of seventy-two (72) hours advance notice to Grantee of the
need for such live feeds and shall endeavor to provide a minimum seven (7) Days
advance notice when possible; and 2) upon two (2) weeks prior notice by
Commission, work with Commission to accommodate one time programming via
live feeds from areas not passed by the Grantee's fiber optic network. Such live
feeds shall be under Grantee's direct supervision and on a frequency designated
by Grantee.
f. Grantee shall also feed the Local Origination and PEG Channels provided in the
City of St. Paul into the Commission's master control for potential simulcasting
g.
page 113
on the PEG Channels required pursuant to this Franchise. Determination
regarding the simulcasting of such PEG Channels and Local Origination signals
from St. Paul shall be in the sole discretion of the Commission. Grantee shall
have the option to meet this obligation via the interconnection obligations set
forth in Section 13 of this Exhibit A to the extent the interconnection reaches St.
Paul, or its designated access entity (currently St. Paul Neighborhood Network -
SPNN), playback location.
In the event Grantee provides Cable Service to a minimum of thirty percent (30%)
of the total number of Cable Service Subscribers within Commission Franchise
Area served by cable operators franchised within the Commission Franchise Area,
the Grantee shall then be required to also comply with the requirements of this
Section 11(f) of this Exhibit A in the following manner: Grantee shall provide
regular satellite feeds from Grantee's headend facility and/or hub site locations to
be fed directly to the Commission's master control facility. At a minimum,
Grantee shall provide six (6) such satellite feeds. By way of example, the thirty
percent (30%) threshold shall be calculated in the following manner: Company A
and Company B both hold franchises to provide Cable Service in the City.
Company A has 12,000 Cable Service Subscribers and Company B has 8,000
Cable Service Subscribers - for a total of 20,000 Cable Service Subscribers in the
City. Under this example, Company A has 60% of the total Cable Service
Subscribers and Company B has 40% of the total Cable Service Subscribers.
h. Grantee shall provide twenty-six (26) live feeds, free of charge, each year from
Grantee's headend facility (presently located in Golden Valley) to and from, other
municipalities where Grantee holds a franchise in the Twin Cities to allow for the
sharing of local programming such as high school sports and/or other programs
with shared audiences. Grantee shall have the option to meet this obligation via
the interconnection obligations set forth in Section 13 of this Exhibit A provided
that such other municipal franchises require Grantee to provide access to the
interconnection network (i.e. Section 13 of this Exhibit A).
i. To the extent required for Grantee to receive PEG programming, Grantee shall
provide free fiber optic links, including internal wiring to Drop points and
required commercial -grade equipment to the West St. Paul City Hall, South St.
Paul City Hall, Inver Grove Heights City Hall, Mendota Heights City Hall and
Lilydale City Hall, as well as to the Commission's facility within ninety (90)
Days of request by the Commission. These fiber optic connections will permit the
above -referenced Member Cities to cablecast live governmental meetings on the
PEG Channels, free of charge.
Notwithstanding the foregoing, Grantee shall at all times maintain, free of charge
and at no cost to Commission or the City, all existing fiber return paths, existing
origination paths and transmission equipment in place as of the Effective Date
throughout the term of this Franchise.
page 114
12. Video on Demand.
a. During the term of its Franchise, for as long as the Grantee makes video on
demand ("VOD") available on its Cable System, Grantee will include in its VOD
offerings twenty-five (25) hours of either SD or HD PEG programming, or a
combination of both, per Member City of the Commission, or such greater
amount as may be mutually agreed to by the parties, as designated and supplied
by the Commission or a Member City to the Grantee. The Commission's or
Member Cities' content may be electronically transmitted and/or transferred and
shall be stored on the Grantee's VOD system. The Commission or Member City
VOD PEG programming will be available to Subscribers twenty-four (24) hours
per day, seven (7) days per week. Any Commission or Member City PEG
programming placed on VOD shall be available to Subscribers free of charge.
The Grantee will provide, upon Commission or the City's request, any aggregate
data regarding Subscriber use of the City's programming on the VOD platform, if
available to Grantee. PEG programming content shall have the same viewing
quality and features (including program descriptions and search function) as all
other free VOD content on Grantee's Cable System. Programming submitted for
placement on the VOD system shall be placed on and available for viewing from
the VOD system as soon as possible from time of receipt of said programming
and Grantee will make best efforts to provide a 24-hour turn -around, and in no
case longer than seventy-two (72) hours from receipt of said programming.
Grantee agrees to treat PEG VOD programming in a nondiscriminatory manner as
compared to other similarly situated providers of VOD content.
b. The Commission or the City shall have the sole discretion to select the content of
such PEG VOD programming and shall be responsible for such content. The
Commission's VOD programming will be located on Grantee's On -demand menu
pages on the second page or higher on a button labeled "Town Square Television"
(or the Commission's choice of label). The Commission's PEG VOD
programming will be available in the Commission's Franchise Area, or more
broadly distributed at Grantee's option.
c. To the extent permitted, Grantee shall authorize Commission to obtain from
Grantee's third party vendor, free of charge and at no cost to the Commission,
monthly viewership/traffic reports showing statistics for PEG VOD programs, or
Grantee shall provide (or require its third party vendor to provide) the
Commission with access to online dashboard analytics allowing Commission staff
to directly access traffic information.
13. Interconnection. Grantee shall provide a discrete, non-public, video interconnect
network, from an agreed upon Demarcation Point at the Commission's master control
facility at the Commission's office, to Grantee's headend. The video interconnect
network shall provide not less than 50 Mbps of allocated bandwidth, allowing PEG
operators that have agreed with Grantee to share (send and receive) live and recorded
programming for playback on their respective systems. Where available the Grantee
shall provide the video interconnect network and the network equipment necessary, for
page 115
the high-priority transport of live multicast HD/SD video streams as well as lower -
priority file -sharing. Grantee shall provide a minimum of 50 Mbps bandwidth for each
participating PEG entity to send its original programming, receive at least two (2)
additional multicast HD/SD streams from any other participating PEG entity, and allow
the transfer of files. Each participating PEG entity is responsible for encoding its own
SD/HD content in suitable bit rates to be transported by the video interconnect network
without exceeding the 50 Mbps of allocated bandwidth. The System servicing the
Commission and its Member Cities shall be completely interconnected. In addition,
Grantee shall make available for Interconnection purposes one (1) Channel for forward
video purposes, one (1) six (6) MHz Channel for return video purposes, one (1) Channel
for forward data or other purposes, and one (1) Channel for return data or other purposes
between all Cable Systems adjacent to the Commission's Cable System and under
common ownership with Grantee. This commitment may be satisfied through the
provision of the Twin Cities Metro PEG Interconnect Network, provided Grantee agrees
to allow all cities adjacent to the Commission Franchise Area to participate.
EXHIBIT B
SERVICE TO PUBLIC AND PRIVATE BUILDINGS
Cable Commission Office & PEG Studio/Master Control
Northern Dakota County Cable Communications Commission
and Town Square Television, its designated access entity
5845 Blaine Avenue
Inver Grove Heights, MN 55076-1401
City of Inver Grove Heights
Inver Grove Heights City Hall
8150 Barbara Avenue
Inver Grove Heights, MN 55077
IGH Fire Station #3
2059 Upper 55th Street E
Inver Grove Heights, MN 55077
IGH Public Works
8168 Barbara Avenue
Inver Grove Heights, MN 55077
Veterans Memorial Community Center
8055 Barbara Avenue
Inver Grove Heights, MN 55077
IGH Future Fire Station
(Address not determined yet)
Inver Grove Heights, MN
Lilydale City Hall
1011 Sibley Memorial Hwy
Lilydale, MN 55118
Sites to be determined
Mendota Heights City Hall
1101 Victoria Curve
Mendota Heights, MN 55118
page 116
Inver Grove Heights Police Department
8150 Barbara Avenue
Inver Grove Heights, MN 55077
IGH Fire Station #1
7015 Clayton Avenue East
Inver Grove Heights, MN 55076
Inver Wood Golf Course
1850 70th Street East
Inver Grove Heights, MN 55077
IGH Water Treatment Plant
2015 75th Street
Inver Grove Heights, MN 55077
City of Lilydale
City of Mendota
City of Mendota Heights
Mendota Heights Police Department
1101 Victoria Curve
Mendota Heights, MN 55118
Mendota Heights Fire Department
2121 Dodd Road
Mendota Heights, MN 55120
Mendota Heights Public Works Building
2431 Lexington Avenue
Mendota Heights, MN 55118
South St. Paul City Hall
125 3rd Avenue
South St. Paul, MN 55075
Doug Woog Civic Arena
141 East 6th Street
South St. Paul, MN 55075
SSP Municipal Service Center
400 Richmond St. W.
South St. Paul, MN 55075
page 117
Mendota Heights Par 3 Golf Course
1695 Dodd Road
Mendota Heights, MN 55118
City of South St. Paul
South Metro Fire Department Station #2
310 Marie Avenue
South St. Paul, MN 55075
Sites to be determined
West St. Paul City Hall
1616 Humboldt Avenue
West St. Paul, MN 55118
South Metro Fire Station #1
1616 Humboldt Avenue
West St. Paul, MN 55118
West St. Paul Municipal Pool
92 West Orme Avenue
West St. Paul, MN 55118
Thompson Oaks Golf Course
1555 Oakdale Avenue
West St. Paul, MN 55118
South St. Paul Police Department
125 3rd Avenue
South St. Paul, MN 55075
Fleming Field Airport
1720 Henry Avenue
South St. Paul, MN 55075
Central Square Community Center
110 7th Avenue North
South St. Paul, MN 55075
South St. Paul Public Library
106 3rd Avenue N.
South St. Paul, MN 55075
City of Sunfish Lake
City of West St. Paul
West St. Paul Police Department
1616 Humboldt Avenue
West St. Paul, MN 55118
West St. Paul Regional Athletics Center (Dome)
1655 Livingston Avenue
West St. Paul, MN 55118
John V. Hoene Ice Arena
60 West Emerson Avenue
West St. Paul, MN 55118
West St. Paul Public Works
403 Marie Avenue East
West St. Paul, MN 55118
Dakota County
Facilities Located In NDC4 Area
Northern Service Center
1 West Mendota Road
West St. Paul, MN 55118
Wentworth Library
199 East Wentworth Avenue
West St. Paul, MN 55118
Dakota County Historical Society &
Lawshe Memorial Museum
130 3rd Avenue North
South St. Paul, MN 55075
Inver Glen Library
8098 Blaine Avenue
Inver Grove Heights, MN 55076
Thompson Park Activity Center
1200 Stassen Lane
West St. Paul, MN 55118
Independent School District #199
(Inver Grove Heights Schools)
Simley Senior High School
2920 East 80th Street
Inver Grove Heights, MN 55076
ISD #199 District Office
2990 80th Street East
Inver Grove Heights, MN 55076
Hilltop Elementary School
3201 East 68th Street
Inver Grove Heights, MN 55076
Inver Grove Middle School
8167 Cahill Avenue East
Inver Grove Heights, MN 55076
Pine Bend Elementary School
9875 Inver Grove Trail
Inver Grove Heights, MN 55076
Salem Hills Elementary School
5899 East Babcock Trail
Inver Grove Heights, MN 55076
Tri -District Community Ed. — IGH Office Inver Grove Elementary School
2925 Buckley Way 4100 East 66th Street
Inver Grove Heights, MN 55076 Inver Grove Heights, MN 55076
Early Learning Center
3203 68th Street East
Inver Grove Heights, MN 55076
Independent School District #197
(Mendota Heights / West St. Paul Schools)
Henry Sibley High School/District Office
1897 Delaware Avenue
Mendota Heights, MN 55118
Friendly Hills Middle School
701 Mendota Heights Road
Mendota Heights, MN 55118
page 118
Heritage E -STEM Magnet School
121 West Butler Avenue
West St. Paul, MN 55118
Mendota Elementary School
1979 Summit Lane
Mendota Heights, MN 55118
Garlough Environmental Magnet School
1740 Charlton Street
West St. Paul, MN 55118
Special
(South
South St. Paul Secondary School
700 2nd St. North
South St. Paul, MN 55075
South St. Paul Schools District Office
104 5th Ave. South
South St. Paul, MN 55075
Kaposia Education Center
1225 1st Ave. South
South St. Paul, MN 55075
page 119
Somerset Elementary School
1355 Dodd Road
Mendota Heights, MN 55118
Moreland Arts & Health Sciences Magnet School
217 West Moreland Avenue
West St. Paul, MN 55118
Tri -District Community Ed.- ISD 197 Office
1897 Delaware Avenue
Mendota Heights, MN 55118
School District 6
St. Paul Schools)
Tri -District Community Education
South St. Paul Office & Kid Connections
1541 5th Avenue South
South St. Paul, MN 55075
Lincoln Center Elementary
357 9th Ave. North
South St. Paul, MN 55075
SSP Community Learning Center
151 6th St. East
South St. Paul, MN 55075
South St. Paul Early Childhood Family Education
1515 5th Avenue South
South St. Paul, MN 55075
Convent of the Visitation School
2455 Visitation Drive
Mendota Heights, MN 55120
St. Croix Lutheran School
1200 Oakdale Avenue
West St. Paul, MN 55118
St. Joseph's School
1138 Seminole Avenue
West St. Paul, MN 55118
Private Schools
St. Thomas Academy
949 Mendota Heights Road
Mendota Heights, MN 55120
Community of Saints Catholic School
335 E. Hurley Street
West St. Paul, MN 55118
Holy Trinity School
745 - 6th Avenue South
South St. Paul, MN 55075
Crown of Life Lutheran School
115 Crusader Avenue
West St. Paul, MN 55118
Colleges
Inver Hills Community College
2500 East 80th Street
Inver Grove Heights, MN 55076
page 120
page 121
EXHIBIT C
FRANCHISE FEE PAYMENT WORKSHEET
Franchise Fee Factor: 5%
Franchise Fee Remitted
PEG Fee Factor 2.5% [if percentage formula is used]
PEG Fee Remitted
Month/Year
Month/Year
Month/Year
Total
A la Carte Cable Services
Audio Services
Basic Cable Services
Expanded Basic Cable Services
Pay Services
Premium Services
Video-On-Demand Services
Pay-per-view Services
Installation Charges
Activation/Disconnection
Charges
Technician Service Call
Charges
Equipment Charges
DTA Equipment Charges
Wireless Set-Top Box
DVR Charges
Additional Outlets
Guide Revenue
Bulk Revenue
Advertising Revenue
Home Shopping Revenue
Inside Wiring / Service
Protection Plan
Other Revenue
Processing Fees
Franchise Fee Revenue
Late Fees
Bad Debt
TOTAL REVENUE
Franchise Fee Factor: 5%
Franchise Fee Remitted
PEG Fee Factor 2.5% [if percentage formula is used]
PEG Fee Remitted
page 122
PEG FEE PAYMENT WORKSHEET [if fee per Subscriber is used]
Nothing in this Franchise Fee Payment Worksheet shall serve to modify the definition of
"Gross Revenues" set forth in the Franchise.
Month/Year
Month/Year
Month/Year
Total
Number of Subscribers Inver Grove Heights
Number of Subscribers Lilydale
Number of Subscribers Mendota
Number of Subscribers Mendota Heights
Number of Subscribers South St. Paul
Number of Subscribers Sunfish Lake
Number of Subscribers West St. Paul
TOTAL SUBSCRIBERS
Current Monthly PEG Fee $1.77 per month
per Subscriber
PEG Fee Remitted
Nothing in this Franchise Fee Payment Worksheet shall serve to modify the definition of
"Gross Revenues" set forth in the Franchise.
page 123
EXHIBIT D
INDEMNITY AGREEMENT
INDEMNITY AGREEMENT made this 15th day of March, 2016, by and between
Qwest Broadband Services, Inc., a Delaware Corporation, party of the first part, hereinafter
called "CenturyLink," and the City of Mendota Heights, a Minnesota Municipal Corporation,
party of the second part, hereinafter called "City."
WITNESSETH:
WHEREAS, the City of Mendota Heights has awarded to Qwest Broadband Services,
Inc. a franchise for the operation of a cable communications system in the City of Mendota
Heights; and
WHEREAS, the City has required, as a condition of its award of a cable communications
franchise, that it be indemnified with respect to all claims and actions arising from the award of
said franchise,
NOW THEREFORE, in consideration of the foregoing promises and the mutual
promises contained in this agreement and in consideration of entering into a cable television
franchise agreement and other good and valuable consideration, receipt of which is hereby
acknowledged, CenturyLink hereby agrees, at its sole cost and expense, to fully indemnify,
defend and hold harmless the City, its officers, boards, commissions, employees and agents
against any and all claims, suits, actions, liabilities and judgments for damages, cost or expense
(including, but not limited to, court and appeal costs and reasonable attorneys' fees and
disbursements assumed or incurred by the City in connection therewith) arising out of the actions
of the City in granting a franchise to CenturyLink. This includes any claims by another
franchised cable operator against the City that the terms and conditions of the CenturyLink
franchise are less burdensome than another franchise granted by the City or that the CenturyLink
Franchise does not satisfy the requirements of applicable federal, state, or local law(s). The
indemnification provided for herein shall not extend or apply to any acts of the City constituting
a violation or breach by the City of the contractual provisions of the franchise ordinance, unless
such acts are the result of a change in applicable law, the order of a court or administrative
agency, or are caused by the acts of CenturyLink.
The City shall give CenturyLink reasonable notice of the making of any claim or the
commencement of any action, suit or other proceeding covered by this agreement. The City shall
cooperate with CenturyLink in the defense of any such action, suit or other proceeding at the
request of CenturyLink. The City may participate in the defense of a claim, but if CenturyLink
provides a defense at CenturyLink's expense then CenturyLink shall not be liable for any
attorneys' fees, expenses or other costs that the City may incur if it chooses to participate in the
defense of a claim, unless and until separate representation is required. If separate representation
to fully protect the interests of both parties is or becomes necessary, such as a conflict of interest,
in accordance with the Minnesota Rules of Professional Conduct, between the City and the
counsel selected by CenturyLink to represent the City, CenturyLink shall pay, from the date such
separate representation is required forward, all reasonable expenses incurred by the City in
defending itself with regard to any action, suit or proceeding indemnified by CenturyLink.
page 124
Provided, however, that in the event that such separate representation is or becomes necessary,
and the City desires to hire counsel or any other outside experts or consultants and desires
CenturyLink to pay those expenses, then the City shall be required to obtain CenturyLink's
consent to the engagement of such counsel, experts or consultants, such consent not to be
unreasonably withheld. Notwithstanding the foregoing, the parties agree that the City may
utilize at any time, at its own cost and expense, its own City Attorney or outside counsel with
respect to any claim brought by another franchised cable operator as described in this agreement.
The provisions of this agreement shall not be construed to constitute an amendment of the
cable communications franchise ordinance or any portion thereof, but shall be in addition to and
independent of any other similar provisions contained in the cable communications franchise
ordinance or any other agreement of the parties hereto. The provisions of this agreement shall not
be dependent or conditioned upon the validity of the cable communications franchise ordinance
or the validity of any of the procedures or agreements involved in the award or acceptance of the
franchise, but shall be and remain a binding obligation of the parties hereto even if the cable
communications franchise ordinance or the grant of the franchise is declared null and void in a
legal or administrative proceeding.
It is the purpose of this agreement to provide maximum indemnification to the City under
the terms set out herein and, in the event of a dispute as to the meaning of this Indemnity
Agreement, it shall be construed, to the greatest extent permitted by law, to provide for the
indemnification of the City by CenturyLink. This agreement shall be a binding obligation of and
shall inure to the benefit of, the parties hereto and their successor's and assigns, if any.
QWEST BROADBAND SERVICES, INC.
Dated: , 2016 By:
SIGNATURE
STATE OF LOUISIANA
) SS
)
Name:
Its:
PRINTED/TYPED NAME
TITLE
The foregoing instrument was acknowledged before me this day of 2016,
by , the of Qwest
Broadband Services, Inc., a Delaware Corporation, on behalf of the corporation.
Notary Public
Commission Expires
page 125
CITY OF MENDOTA HEIGHTS, MINNESOTA
By:
SIGNATURE
Name: Sandra Krebsbach
PRINTED/TYPED NAME
Its: Mayor
TITLE
SWORN TO BEFORE ME this
day of ,2016
NOTARY PUBLIC
page 126
CITY OF MENDOTA HEIGHTS
SUMMARY OF ORDINANCE NO. 493
AN ORDINANCE GRANTING A FRANCHISE TO QWEST BROADBAND SERVICES, INC., D/B/A
CENTURYLINK INC. ("CENTURYLINK") TO CONSTRUCT, OPERATE AND MAINTAIN A CABLE SYSTEM IN
THE CITY OF MENDOTA HEIGHTS, MINNESOTA SETTING FORTH CONDITIONS ACCOMPANYING THE
GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM AND THE PUBLIC
RIGHTS-OF-WAY; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS HEREIN.
On March 15, 2016, the City of Mendota Heights, Minnesota ("City') adopted an Ordinance granting a
Cable Television Franchise to CenturyLink. The Ordinance serves two purposes. First, it is intended to
provide requirements for the provision of cable television services with respect to technical standards,
customer service obligations, and related matters. Second, it grants a non-exclusive cable franchise to
CenturyLink to operate, construct and maintain a cable system within the City.
The Ordinance includes the following: 1) requires CenturyLink to have a bandwidth capable of providing
the equivalent of a typical 750 MHz cable system; 2) imposes on CenturyLink a franchise fee of five
percent (5%) of CenturyLink's annual gross revenues; 3) establishes a franchise term of five (5) years
with the option for the City to extend for an additional 5 years; 4) provides a list of schools and public
buildings entitled to receive complimentary cable service; 5) requires CenturyLink to dedicate channel
capacity for public, educational and governmental programming and provides financial support of such
channels; 6) mandates customer service standards regarding CenturyLink's provision of cable services;
and 7) requires a performance bond and security fund to enforce CenturyLink's compliance with the
Ordinance.
It is hereby determined that publication of this title and summary will clearly inform the public of the
intent and effect of Ordinance No. 493. A copy of the entire Ordinance shall be posted at the Mendota
Heights City Hall.
It is hereby directed that only the above title and summary of Ordinance No. 493 be published,
conforming to Minn. Stat. §331A.01, with the following:
NOTICE
Persons interested in reviewing a complete copy of the Ordinance may do so at the City Hall at
1101 Victoria Curve, Mendota Heights, MN 55118 during the hours of 8:00 a.m. and 4:30 p.m., Monday
through Friday.
Passed by the Mendota Heights City Council this 15th day of March, 2016.
CITY COUNCIL OF MENDOTA HEIGHTS
/s/Sandra Krebsbach, Mayor
Attest:
/s/ Lorri Smith, City Clerk
of InCITY OF
MENDOTA HEIGHTS
page 127
1101 Victoria Curve 1 Mendota Heights, MN 55118
651.452.1850 phone 1 651.452.8940 fax
www.mendota-heights.com
MEETING DATE: March 15, 2016
TO: Mayor, City Council and City Administrator
FROM: Tamara Schutta
Assistant to the City Administrator/HR Coordinator
SUBJECT: 2016 Contract for Pilot Knob Management
BACKGROUND
Attached you will find the 2016 contract proposal from Great River Greening to manage
restoration work at Pilot Knob site. Great River Greening continues to work from the multi-year
management plan for the site which was adopted by the city council in 2007.
The 2016 contract includes the following:
• Control (spraying, cutting, mowing, soil treatment) of invasive species including
burdock, thistle, leafy spurge, crown vetch, bird's foot trefoil, smooth brome, and Canada
goldenrod
• Prescribed burn on approximately 8 acres
• >1 group volunteer events
• Trail/overlook mowing and maintenance
• Conservation grazing services (spring sheep grazing scheduled with Dodge Nature
Center; goat grazing dependent upon price and availability).
• Pollinator monitoring
• Continued restoration of Phase I portion of MnDOT Hwy 55 roadside
• Updating and Revision of Pilot Knob management plan to address underperforming
restoration acres, and begin implementation of same. Likely actions include expanding
Canada goldenrod control, additional woody encroachment control, larger scale planting
of additional trees, shrubs and herbaceous plants; and supplemental seeding. Pollinator
monitoring and conservation grazing to inform future management recommendations and
actions.* Contingent upon Greening receiving Minnesota Environment and Natural
Resources Trust Fund dollars, currently recommended by LCCMR to the legislature for
$43,000 of funding to be available from July 1, 2016 -June 30, 2019.
Mr. Wiley Buck will be providing a summary of the 2015 activities along with an overview of
what is planned for 2016.
Attachment(s)
• 2016 Great River Greening Contract
page 128
• Exhibit A: Agreement between Great River Greening (The Trust Fund Appropriation
Recipient) and Partner
BUDGET IMPACT
The proposed contract for $10,050 is consistent with the 2016 budget for this activity.
RECOMMENDATION
Staff recommends accepting the proposed 2016 Pilot Knob Management contract and Exhibit A.
ACTION REQUIRED
If City Council concurs with the recommendation for the Pilot Knob Management Plan, it should
pass a motion authorizing staff to execute a contract with Great River Greening for Pilot Knob
Hill Restoration. This action requires a simple majority vote.
page 129
CONTRACT
Great River Greening
35 West Water Street, Suite 201
Saint Paul, MN 55107-2016
Contracting Agent
City of Mendota Heights
Street Address
1101 Victoria Curve
City, State, Zip Code
Mendota Heights, MN 55118
Client Name Contact
Tammy Schutta
Greening Contact Date of Bid
Wiley Buck 7 March 2016
651-665-9500
651-665-9409 FAX
Phone Date
651 452-1850 7 March 2016
Project Name
Pilot Knob Hill Restoration
.:................................................................................................................................................................................................................................................................:
Project Location
Pilot Knob Hill Natural Area
Contact Phone
452-1850
Project Number(s) Greening Contact Phone
LPIL17, LPIL18 651-665-9500 x15
LPIL20; LPIL21
Parties. This contract governs the rights and responsibilities of Great River Greening
(hereafter referred to as Greening) and the Contracting party, (hereafter referred to as
Mendota Heights, where Greening has been retained to perform services for the
contracting party).
II. Scope of Services. Greening agrees to provide the following list of restoration services
for Mendota Heights:
• Control (spraying, cutting, mowing, soil treatment) of invasive species including
burdock, thistle, leafy spurge, crown vetch, bird's foot trefoil, smooth brome, and
Canada goldenrod
• Prescribed burn on approximately 8 acres
• >_1 group volunteer events
• Trail/overlook mowing and maintenance
• Conservation grazing services (spring sheep grazing scheduled with Dodge
Nature Center; goat grazing dependent upon price and availability).
• Pollinator monitoring
• Continued restoration of Phase I portion of MnDOT Hwy 55 roadside
• Updating and Revision of Pilot Knob management plan to address
underperforming restoration acres, and begin implementation of same. Likely
actions include expanding Canada goldenrod control, additional woody
encroachment control, larger scale planting of additional trees, shrubs and
herbaceous plants; and supplemental seeding. Pollinator monitoring and
conservation grazing to inform future management recommendations and
actions.*Contingent upon Greening receiving Minnesota Environment and
Natural Resources Trust Fund dollars, currently recommended by LCCMR to the
legislature for $43,000 of funding to be available from July 1, 2016 -June 30,
2019.
page 130
• Assist with petition for National Registry of Historic Places, replacement signage,
and gate improvements.
III. Schedule of Payments. Mendota Heights will make payments totaling $10,050 upon
the following schedule:
$10,050 for Calendar Year 2016.
See Exhibit A for terms of agreement for Greening to bring $43,000 of Trust Fund allocation to
Pilot Knob Hill.
IV. Limitation of liability. Mendota Heights shall indemnify Greening and hold it harmless
from and against any loss, claims, liabilities, damages and costs, including reasonable
attorney's fees, related to the Project or the performance of their services pursuant to
this Agreement, unless caused by the negligence of Greening, its agents or employees,
or covered by the insurance required in Section VIII of this contract. Nothing in this
contract is intended, nor should it be construed, as a waiver of any municipal tort liability
limits, governmental immunities or defenses which otherwise protect the City of Mendota
Heights.
Greening shall indemnify Mendota Heights and hold it harmless from and against any
loss, claims, liabilities, damages and costs, including reasonable attorney's fees, arising
out of Greening's breach of the Agreement and/or the negligent acts, omissions or willful
misconduct, unless caused by the negligence of Mendota Heights, its agents or
employees.
V. Amendment. This Agreement may be amended only in a written document signed by
both parties.
VI. Independent Contractors. Each party, its officers, agents and employees are at all
times an independent contractor to the other party. Nothing in this Agreement shall be
construed to make or render either party or any of its officers, agents, or employees an
agent, servant, or employee of, or joint venture of or with, the other.
VII. Entire Agreement. This Agreement represents the entire agreement and understanding
of the parties hereto with respect to the subject matter of this Agreement, and it
supercedes all prior and concurrent agreements, understandings, promises or
representations, whether written or oral, made by either party to the other concerning
such subject matter.
VIII. Insurance. Greening agrees to maintain during the term of this Consulting Contract the
following insurance: Workers Compensation Insurance, Commercial General Liability
(with coverage no more restrictive that that provided for by standard ISO Form CG 00 01
11 88 or CG 00 01 10 93 with standard exclusions "a" through "n") with a minimum limit
of $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate for bodily injury
and property damages, the limit specified may be satisfied with a combination of
primary and Umbrella/Excess Insurance.
page 131
IX. Waiver. The failure of either party to insist in any one or more instances upon strict
performance of any of the provisions of this Agreement shall not be construed as a
waiver or relinquishment of the right to enforce or require compliance with such
provision.
X. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the state of Minnesota.
XI. Completion. Work for this Project will be performed by 31 December 2016 unless
circumstances beyond Greening's control prevent Greening from completing the Project.
The authorized contact person for
Greening is:
Wiley Buck
Program Managert
35 Water Street, Suite 201
Saint Paul, MN 55107
651-665-9500 ext. 15
651-775-8759 cell
wbuck@greatrivergreeninq.org
Great River Greening
Signature:
Name:
Deborah Karasov
Title:
Executive Director
Date:
Grant Manager:
Director of Finance:
Director of Operations:
page 132
Contact Persons
The authorized contact person for Mendota
Heights is:
Tamara Schutta, PHR
Assistant to the City Administrator/HR
Coordinator
1101 Victoria Curve
Mendota Heights, MN 55118
651-452-1850
tamaras@mendota-heights.com
Mendota Heights Representative
Signature:
Name:
Title:
Date:
page 133
EXHIBIT A
AGREEMENT BETWEEN
GREAT RIVER GREENING (THE TRUST FUND APPROPRIATION RECIPIENT)
AND PARTNER
THIS AGREEMENT is made between Great River Greening (hereinafter "Recipient"); and City
of Mendota Heights (hereinafter the "Partner").
WHEREAS, Should the Minnesota Legislature by Minnesota Laws M.L. 2016 appropriate
$509,000 to the Commissioner of MN -DNR for an 'Upland, Wetland, and Shoreline Restoration
in the Greater Metropolitan Area' agreement with Great River Greening;
NOW THEREFORE, it is agreed between the Recipient, and the Partner as follows:
1.0 GENERAL CONDITIONS
1.1 COMPLIANCE
The Partner acknowledges that these funds are proceeds from the State of Minnesota
Environment and Natural Resources Trust Fund (hereinafter the "Trust Fund"), which is
subject to certain legal restrictions and requirements, including Minnesota Statutes Chapter
116P. The Partner is responsible for compliance with this and all other relevant state and
federal laws and regulations in the fulfillment of the Project.
1.2 ACCESS
The Partner agrees to allow the Recipient and LCCMR access to the Partner's site and
Partner's activities for evaluation and promotion of the project. Access will be at reasonable
times and with sufficient prior notification, and will extend ten (10) years beyond the project
completion date.
page 134
2.0 PROJECT
Figure A 1: Pilot Knob Hill 2016 Project Area
2.1 CONTRIBUTIONS
The Recipient's and Partner's contributions must be for actual and direct costs for the
Project Work. This Agreement may be modified at any time by mutual written consent of
the parties. It may be terminated by either party upon 30 days advance written notice to
the other party. However, if the Partner(s) terminates the Agreement before its expiration,
then the Partner(s) agrees to reimburse the Minnesota Environment and Natural Resources
Trust Fund prior to final termination for the pro -rated costs of all habitat restoration projects
placed on the described land through this Agreement. For these purposes the total revised
updated cost of the habitat restoration projects to the Minnesota Environment and Natural
Resources Trust Fund are agreed to be a maximum of $43,000 total, to be spent between
July 1, 2016 and June 30, 2019.
2.2 ACKNOWLEDGMENTS
The Partner agrees to acknowledge the Trust Fund's financial support for this Work in any
statement, press release, bid solicitation, project publications, and other public
communications and outreach related to the work completed using the Trust Fund
appropriation. The acknowledgement will contain the following language and/or logo(s):
r.
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GREAT41.01,„,
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GREENING TRUST FUND
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150
300
600
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Figure A 1: Pilot Knob Hill 2016 Project Area
2.1 CONTRIBUTIONS
The Recipient's and Partner's contributions must be for actual and direct costs for the
Project Work. This Agreement may be modified at any time by mutual written consent of
the parties. It may be terminated by either party upon 30 days advance written notice to
the other party. However, if the Partner(s) terminates the Agreement before its expiration,
then the Partner(s) agrees to reimburse the Minnesota Environment and Natural Resources
Trust Fund prior to final termination for the pro -rated costs of all habitat restoration projects
placed on the described land through this Agreement. For these purposes the total revised
updated cost of the habitat restoration projects to the Minnesota Environment and Natural
Resources Trust Fund are agreed to be a maximum of $43,000 total, to be spent between
July 1, 2016 and June 30, 2019.
2.2 ACKNOWLEDGMENTS
The Partner agrees to acknowledge the Trust Fund's financial support for this Work in any
statement, press release, bid solicitation, project publications, and other public
communications and outreach related to the work completed using the Trust Fund
appropriation. The acknowledgement will contain the following language and/or logo(s):
page 135
(Partial) funding for this project was provided by the Minnesota Environment
and Natural Resources Trust Fund as recommended by the Legislative -Citizen
Commission on Minnesota Resources (LCCMR).
4
ENVIRONMENT
AND NATURAL RESOURCES
TRUST FUND
Preferred acknowledgement language is:
(Partial) Funding for this project was provided by the Minnesota Environment and
Natural Resources Trust Fund as recommended by the Legislative -Citizen
Commission on Minnesota Resources (LCCMR), through Great River Greening's
membership in the Metro Conservation Corridors partnership.
Partner agrees to maintain signs installed by Greening at the Project Site that
includes this acknowledgement language, and will include it in permanent signage.
2.3 ECOLOGICAL AND RESTORATION MANAGEMENT PLAN
For all restorations conducted with money appropriated under this section, the Recipient
must prepare an ecological restoration and management plan that, to the degree
practicable, is consistent with the highest quality conservation and ecological goals for the
restoration site. Consideration should be given to soil, geology, topography, and other
relevant factors that would provide the best chance for long-term success of the restoration
projects. The plan must include the proposed timetable for implementing the restoration,
including site preparation, establishment of diverse plant species native to Minnesota,
maintenance, and additional enhancement to establish the restoration; identify long-term
maintenance and management needs of the restoration and how the maintenance,
management, and enhancement will be financed; and take advantage of the best available
science and include innovative techniques to achieve the best restoration. Seeding/planting
will follow the local ecotype sequencing steps outlined in the Minnesota Board of Water &
Soil Resources Native Vegetation Establishment and Enhancement Guidelines
(http://www.bwsr.state.mn.us/native veqetation/seedinq_guidelines.pdf June 2015
version).
2.4 RESTORATION EVALUATION
Recipient must provide an initial restoration evaluation to LCCMR at the completion of the
appropriation and an evaluation three years beyond the completion of the expenditure.
Restorations must be evaluated relative to the stated goals and standards in the restoration
plan, current science, and, when applicable, the Minnesota Board of Water & Soil
Resources Native Vegetation Establishment and Enhancement Guidelines. The evaluation
shall determine whether the restorations are meeting planned goals, identify any problems
with the implementation of the restorations, and, if necessary, give recommendations on
improving restorations. The evaluation shall be focused on improving future restorations.
page 136
2.5 LONG TERM RESTORATION
The Partner acknowledges the long term maintenance and enhancement needs of the
restoration process to achieve restoration goals. The Partner agrees to maintain restoration
for a minimum of 10 years. The Recipient agrees to make reasonable good faith effort to
significantly contribute to the successful maintenance of the project.
Minnesota Department of Transportation is the Landowner. If the Landowner(s) or Partner
should fail to maintain the habitat restoration for 10 years, then the Partner(s) agrees to
reimburse the Minnesota Environment and Natural Resources Trust Fund for the pro -rated
costs of all habitat restoration projects placed on the described land through this
Agreement.
2.6 PROTECTED LAND
Partner testifies that the restoration project is on land permanently protected by a
conservation easement or public ownership or in public waters as defined in Minnesota
Statutes, section 103G.005, subdivision 15; and will provide reasonable written
documentation of such protection.
2.7 CONTRACTING
Partner understands that Recipient must give consideration to Conservation Corps
Minnesota or its successor for sub -contract restoration and enhancement services.
2.8 POLLINATOR HABITAT ENHANCEMENT
DNR practices and guidelines for pollinator habitat enhancement must be used for all
habitat enhancement or restoration of lands under the commissioner's control.
(http://files.dnr.state.mn.us/natural resources/npc/2014 draft pollinator bmp guidelines.p
df December 2014 version). Prairie restorations conducted on state lands or with state
funds must include an appropriate diversity of native species selected to provide habitat for
pollinators throughout the growing season.
CITY OF
MENDOTA HEIGHTS
MEETING DATE:
TO:
FROM:
Engineer
SUBJECT:
page 137
1101 Victoria Curve 1 Mendota Heights, MN 55118
651.452.1850 phone 1 651.452.8940 fax
www.mendota-heights.com
Request for City Council Action
March 3, 2016
Mayor and City Council, City Administrator
John R. Mazzitello, PE, PMP, MBA — Public Works Director/City
License Agreement Request for Right -of -Way Along Wagon Wheel Trail
COMMENT:
Introduction
The Rogers Lake Property Owners Association is requesting a License Agreement so they can
provide some landscaping along Wagon Wheel Trail at the culvert that connect the north and
south parts of the lake.
Background
The attached request outlines why the RLPOA would like to utilize these particular pieces of
right-of-way. I should be noted that the Department of Natural Resources regulates fishing
activity on Minnesota lakes and has repeatedly denied requests from the City and the RLPOA to
prohibit fishing at the Rogers Lake culvert.
Discussion
The subject of public fishing at the Rogers Lake/Wagon Wheel Trail culvert has been discussed
for many years, and it is a prevailing opinion that having public fishing at the culvert is
somewhat of a safety hazard due to the proximity of passing traffic on Wagon Wheel Trail.
Fishing is available at the pier located in Rogers Lake Park.
The attached License Agreement would grant permission to the RLPOA to plant landscaping
along the Wagon Wheel Trail right-of-way, ten feet on either side of the culvert on the south side
of the road, and five feet on either side of the culvert on the north side of the road.
Budget Impact
There is no anticipated budget impact other than the staff time to process the attached License
Agreement.
Recommendation
page 138
Staff recommends Council approve the attached license agreement and authorize staff to execute
the agreement with the RLPOA.
Action Required
If Council wishes to enact the staff recommendation, pass a motion approving the attached
license agreement and authorize staff to execute the agreement with the RLPOA.
page 139
LICENSE AGREEMENT
This License Agreement (the "LICENSE") is made this 15th day of March, 2016, between THE
CITY OF MENDOTA HEIGHTS, a Minnesota municipal corporation (the "CITY") and The Rogers Lake
Property Owners Association (the "LICENSEE").
RECITALS
WHEREAS, LICENSEE is comprised of shore land property owners and other area property
owners in the vicinity of Rogers Lake; and
WHEREAS, LICENSEE is a registered 501C3 nonprofit organization; and
WHEREAS, LICENSEE has made formal request to utilize and improve a portion of CITY owned
right-of-way along Wagon Wheel Trail; and
WHEREAS, the CITY desires to allow LICENSEE to utilize the right of way for landscape
beautification until such time as the right of way is improved.
LICENSE
NOW, THEREFORE, in consideration of the terms and conditions contained herein, and $1.00 and other
good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as
follows:
1. Grant of License. The CITY does hereby grant LICENSEE a non-exclusive revocable license to
maintain landscaping within the right-of-way of Wagon Wheel Trail in an area ten feet on either
side of culvert under Wagon Wheel Trail on the south side of the road, and five feet on either
side of the culvert on the north side of the road. Such license shall extend to LICENSEE only.
2. No Interest Created. LICENSEE certifies, represents and acknowledges that it has no title in or to
the LICENSED PREMISES, nor to any portion thereof, and has not, does not and will not claim any
such title nor any easement over said land of the CITY. LICENSEE acknowledges that is not
acquiring any easement by necessity or otherwise over the LICENSED PREMISES.
3. Improvements. Licensee shall not make any additions or improvements in or to the LICENSED
PREMISES without the CITY's prior written consent.
4. Indemnification. LICENSEE shall hold the CITY harmless from and indemnify and defend the CITY
against any claim or liability arising in any manner from LICENSEE's use of the LICENSED
PREMISES, or relating to the death or bodily injury to any person or damage to any personal
property present on or located in or upon the LICENSED PREMISES, including the person and
personal property of LICENSEE or LICENSEE's employees, invitees and guests. LICENSEE agrees
to pay all sums of money in respect of any labor, service, materials, supplies or equipment
furnished or alleged to have been furnished to LICENSEE in or about the LICENSED PREMISES,
and not furnished on order of the CITY. LICENSEE may contest any lien for such services,
materials, supplies or equipment, on the condition that LICENSEE first provides to the CITY cash,
bond, or other security against such lie which the CITY reasonably determines to be sufficient.
page 140
5. Assignment or Sublicensing. LICENSEE shall not sublicense any portion of the LICENSED
PREMISES or transfer or assign this LICENSE without obtaining the prior written consent of the
CITY, which consent the CITY may grant or deny at the CITY's sole discretion. The CITY's consent
to any sublicensing or assignment of this LICENSE shall not be a waiver of the CITY's right under
this Section as to any sublicensing or assignment. LICENSEE's assignment of this LICENSE or
sublicensing of the LICENSED PREMISES shall not relieve LICENSEE from any of LICENSEE's
obligations under this LICENSE.
6. Notices. All communications, notices and demands of any kind that either party may be
required or desires to give to or serve on the other party shall be made in writing and personally
delivered or certified U.S. mail, return receipt requested to the following addresses:
To the City:
City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
Attention: City Administrator
With a copy to:
Eckberg Lammers, Attorneys at Law
1809 Northwestern Avenue
Stillwater, MN 55082
Attention: Mendota Heights City Attorney
To Licensee:
Rogers Lake Property Owners Association
c/o Patrick Hickey
2303 Swan Drive
Mendota Heights, MN 55120
7. No Reliance on CITY's Representations. Neither the CITY nor any agent or representative of the
CITY has made any warranty or other representation with respect to the LICENSED PREMISES.
8. Termination and Surrender. The CITY reserves the right to terminate this LICENSE at will and
upon termination of this LICENSE by the CITY LICENSEE shall peaceably surrender the LICENSED
PREMISES.
9. Sunset. This LICENSE shall be in effect upon the date of the authorizing signature below, and
shall remain in effect, unless acted upon by the CITY prior to, March 31, 2021.
10. Miscellaneous.
a. Choice of Law. The laws of the State of Minnesota shall govern the validity,
performance and enforcement of this LICENSE.
page 141
b. Counterparts. This LICENSE may be executed in one or more counterparts, each of
which, when taken together will be deemed to be an original.
c. Amendment or Modifications. This LICENSEE may not be changed or modified orally,
but only upon written agreement signed by the party against whom enforcement of any
waiver, change, modification or discharge is sought.
d. Severability. If any term or provision in this LICENSE is deemed to be invalid or
unenforceable, the remainder of the LICENSE shall remain in effect and be enforceable
to the fullest extent permitted by law.
e. Time is of the Essences. Time is of the essence in the performance of all obligations
under this LICENSE.
IN WITNESS WHEREOF, the CITY and LICENSEE have caused these presents to be executed in
form and manner sufficient to bind them at law, as of the day and year first above written.
CITY: LICENSEE:
CITY OF MENDOTA HEIGHTS,
A Minnesota municipal corporation
By:
Its:
Patrick Hickey, President
Rogers Lake Property Owners Association
page 142
John Mazzitello, PE, PMP, MBA
Public Works Director/City Engineer
City of Mendota Heights, Minnesota
1101 Victoria Curve
Mendota Heights, MN 55118
February 23, 2016
Mr. Mazzitello,
On behalf of the Rogers Lake Property Owners Association, I am requesting a license
agreement from the City to restore part of the shoreline of Rogers Lake along Wagon
Wheel Trail. The area we would like to restore is the north and south parts of Rogers
Lake where Wagon Wheel Trail cuts through it. There are culverts on both sides of
Wagon Wheel Trail.
There is an area of about 5-10 feet on each side of the north culvert that has no
vegetation growing along the shoreline. On the south side the area without vegetation
is about 10-15 feet on each side of the culvert.
This lack of vegetation makes it attractive to people who want to fish in Rogers Lake.
People stand along the shore or bring chairs to sit along the shore to fish. Sometimes
they will put in and take out boats from that site. All of this activity is causing the
shoreline to erode. The fishing activity is also a safety hazard because people
(including children with poles) run back and forth across Wagon Wheel Trail to fish both
sides of the lake.
Our association would like to plant native willow, dogwood and viburnum along the
shoreline. A thriving plant community along the lake edge contributes to good water
quality. These plants filter rainwater and melting snow that drain into the lake from the
surrounding road. When that water contains pollutants, the vegetation helps purify it. It
also provides habitat for a variety of birds, amphibians, insects and mammals.
At the same time we plant the shrubs, we would like to install temporary fencing around
the planted areas to give the plants time to put down roots and become established.
The fencing would discourage fishing along the shore in that area and possibly
encourage the use of the fishing facilities in Rogers Lake Park.
I have enclosed a drawing of the area we would like to restore.
Thank you for your consideration.
Sue Light
Rogers Lake Property Owners Association
enclosure: drawing of area
page 143
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CITY OF
MEN DOT A HEIGHTS
MEETING DATE: March 15, 2016
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Conduit Debt Policies and Fees
COMMENT:
Introduction
At the February 9th workshop meeting, the City Council discussed policies and fees relating to
the issuance of tax-exempt debt, including conduit debt and qualified housing bonds, for entities
other than the City of Mendota Heights. The Council is now asked to consider adopting these
policies.
Background
Minnesota law and federal tax regulations allow cities to issue tax-exempt financing to assist
private organizations (also called conduit debt). This financing is often in the form of revenue
bonds to assist manufacturing/industrial development, health care facilities, multi -family housing
developments, and other projects by 501(c)(3) organizations. The bonds are not general
obligations of the City, do not count against the City's debt limit, nor do they impact the credit
rating of the City. Cities may issue up to a total of $10 million of tax-exempt bonds annually
that are categorized as "bank qualified"; that is, these types of bonds are attractive as bank
investments under federal tax regulations, which in turn lowers the interest rates on the bonds.
The $10 million annual limit applies to bonds issued for the City's purposes (i.e. streets, utilities,
public buildings) and to the types of private or non-profit projects mentioned above.
In previous years, the City of Mendota Heights has issued tax-exempt bonds for a number of
501(c)(3) non-profit agencies, including the Academy of the Visitation, and St. Thomas
Academy. In addition, housing bonds have been issued for the developers of the Lexington
Heights Apartments; and, more recently, housing bonds were of interest to a potential
redeveloper of the Larson Greenhouse property.
According to the City Attorney, most of the cities with whom he works have either an ordinance
dealing with conduit financing outlining the fee structure and other issues, or have a
resolution/policy outlining those figures and costs. Mendota Heights has neither; a policy has
been drafted for the City Council to consider.
Regarding the private or non-profit entities that qualify, the City Attorney states that those must
be duly incorporated and validly existing and be in good standing under the laws of
the State. Non-profit recipients must also be an organization described in Section 501(c)(3) of
the Internal Revenue Code of 1986, as amended, exempt from federal income taxation under
section 501(a) of the IRS code, and that there must be no threatened or pending itheajogryieo the
status. Finally, the organization borrowing the funds cannot be a private foundation within the
meaning of the IRS Code.
By using the tax exempt issuing authority of the City, and especially if the bonds are "bank
qualified" as described above, the 501(c)(3) organizations qualify for significant savings in
interest rates over the life of the bonds. In the past, the City of Mendota Heights has required the
organizations utilizing the City for this conduit debt to reimburse it for any out of pocket
expenses, such as legal and financial review. However, there are typically ongoing annual
reporting costs over the issuance length of the bonds for which the City has not charged.
In addition, while the chances are small, there is always a possibility that the organizations or the
bond issues themselves may be audited by the IRS. The organization is typically responsible for
all costs related to the audit; however, if the organization has become insolvent, the City might
be in the position of having to pay a settlement to the IRS in the event of an adverse finding, or
allow the bonds to be declared taxable. Being declared taxable would not impact the City
directly, but it would impact the holders of the bonds, as the holders would be responsible to pay
taxes on the interest that accrues on the bonds.
It is not uncommon for other cities to issue conduit debt for organizations which have no
relationship to that city, and those cities charge fees for the privilege. These are cities which
usually never issue bonds which exceed the $10 million annual "bank qualified" limit which has
been established by the IRS. In fact, borrowing organizations and consultants sometimes seek
out these small issuers, such as the cities of Mendota and Lilydale, as these cities rarely ever
issue bonds and can exchange their $10 million bank qualified limit for consideration.
Fees Charged—In the past, the City of Mendota Heights has charged .0008% of the par value for
the issuance of the bonds. For example, a $5 million bond would generate $4000 for the City. In
addition, a flat $500 has been charged for the refunding of debt. Both of these fees are
significantly below what other cities charge.
A survey of other cities (two of which are attached) show that charging .5% to a full 1% is
common. Increasing the charge by Mendota Heights to .5% of the par value would generate
$25,000 for the City on a $5 million bond. A portion of that fee would go into the General Fund
for the reimbursement of future monitoring and reporting costs. The balance could go to other
purposes as determined by the City Council—an economic development fund, the special park
fund, or the like.
The City's financial advisor, Ehlers, recommends charging a single fee up front—either .5% or
1% of the value of the bonds. The alternative is to charge a lesser annual percentage to cover
ongoing reporting costs. The rationale is that the annual costs are more difficult to manage.
Policies—Ehlers provided staff with the policies of a number of other cities that issue conduit
debt. Attached is a proposed policy for the issuance of tax-exempt revenue bonds. It is based on
the policies of the Cities of Roseville and Anoka, which were sample policies provided by
Ehlers. The proposed fees in this policy are as follows:
• Non-refundable application fee of $2500
• Closing fee of the greater of $10,000, or .5% of par value of bonds.
• No charges for refunding (other than reimbursement of out of pocket costs)nr-fgeuf4 nt on
all other charges.
• Subsequent modification fee --$1500
Note that Roseville and Anoka charge a full 1%; we instead recommend .5%
Recommendation
I recommend the City Council adopt the policies and fees as presented herein.
Action Required
If the Council concurs, it should adopt the attached Procedure for Private Activity Revenue Bond
Financing, by adopting the following Resolution:
Resolution 2016-22
A Resolution Adopting
Policies and Procedures for Private Activity
Revenue Bond Financing
for the City of Mendota Heights, Minnesota
Mark McNeill
City Administrator
page 148
Resolution 2016-22
A Resolution Adopting
Policies and Procedures for Private Activity
Revenue Bond Financing
for the City of Mendota Heights, Minnesota
WHEREAS, the City of Mendota Heights is has the ability to issue up to $10 million in tax
exempt bonds annually that are classified as "bank qualified"; and
WHEREAS, the City of Mendota Heights traditionally for itself does not issue bonds which
exceed the $10 million limit; and
WHEREAS, as a result, the City of Mendota Heights has the capacity to issue Private Activity
Revenue Bonds for a variety of projects for other housing and non-profit entities; and
WHEREAS, in order to have consistency in the issuance of this conduit debt, and to make
certain that all of the costs for the issuance and future reporting are covered, the City of Mendota
Heights has prepared a policy which defines the necessary qualifications, methodology, fees,
application form, and an Indemnification Letter of Agreement for issuers of Commercial,
Educational, Industrial, Health Care, or Housing Bonds, who desire to use the bank qualified
bonds to be issued by the City of Mendota Heights; and
WHEREAS, said policies have been reviewed and approved by the City Attorney for the City of
Mendota Heights.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF MENDOTA HEIGHTS, MINNESOTA that the Procedure for Application to
City of Mendota Heights, Minnesota for Private Activity Revenue Bond Financing, effective as
of March 16, 2016, is hereby adopted.
Sandra Krebsbach, Mayor,
City of Mendota Heights, Minnesota
ATTEST:
Lorri Smith, City Clerk
page 149
PROCEDURE
FOR
APPLICATION TO
CITY OF MENDOTA HEIGHTS, MINNESOTA
FOR
PRIVATE ACTIVITY REVENUE BOND FINANCING
Effective as of March 16, 2016
page 150
PROCEDURE FOR APPLICATION
TO THE CITY OF MENDOTA HEIGHTS FOR
PRIVATE ACTIVITY REVENUE BOND FINANCING
Table of Contents
Page
PART I GENERAL 1
PART II GUIDELINES 2
PART III MISCELLANEOUS MATTERS 4
PART IV APPLICATION FOR TAX-EXEMPT FINANCING 5
PART V APPLICATION FOR TAX-EXEMPT FINANCING 8
PART VI ADDENDUM TO APPLICATIONS 11
PART VII INDEMNIFICATION LETTER OF AGREEMENT 13
page 151
PART I
GENERAL
Under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections
469.152 to 469.1655, as amended (the "Industrial Development Act"), the City of Mendota
Heights, Minnesota (the "City") has authority to issue industrial, commercial, and health care
revenue bonds or notes to attract or promote economically sound industry and commerce to the
City.
Under Minnesota Statutes, Chapter 462C, as amended (the "Housing Act"), the City is authorized
to issue housing revenue bonds to finance multi -family residential housing projects for low and
moderate income persons and elderly persons. Projects must be consistent with a Housing
Program as these terms are defined in the Housing Act.
The Council is aware that such financing for certain private activities may be of benefit to the City
and will consider requests for tax-exempt financing subject to these Guidelines. The Council
considers tax-exempt financing to be a privilege, not a right.
It is the judgment of the Council that tax-exempt financing is to be used on a selective basis to
encourage certain development that offers a benefit to the City as a whole, including significant
employment and housing opportunities. It is the applicant's responsibility to demonstrate the
benefit to the City, both in writing and at the required public hearing. The applicant should
understand that although approval may have been granted by the City for the issuance of financing
for a similar project or a similar debt structure, that is not a basis upon which approval will be
granted. Each application will be judged on the merits of the project as it relates to the public
purposes of the Housing Act or the Industrial Development Act and the benefit to the City at the
time the request for financing is being considered.
page 152
PART II
GUIDELINES
1. The Council will consider tax exempt financing for commercial, industrial and health care
projects under the Industrial Development Act and housing projects under the Housing
Act. An applicant for tax-exempt financing pursuant to the Industrial Development Act
must submit to the City the application contained in Part IV of these Guidelines. An
applicant for tax-exempt financing pursuant to the Housing Act must submit to the City the
application contained in Part V of these Guidelines.
2. Projects must be compatible with the overall development plans and objectives of the City
and comply with the zoning and land use regulations of the City.
3. An application will not be considered by the Council until City Staff has reviewed City
Codes with respect to zoning, building plans, platting, streets, and utility services. The
application must be accompanied by the addendum contained in Part VI of these
Guidelines and must provide information as to the project's need for municipal services
including, but not limited to, street improvements, water and sewer services, and police
and fire protection.
4. The project must be a positive benefit to the City. The project must be of a nature that the
City wishes to attract, or an existing business which the City wishes to retain or have
expand within the City, considering employment opportunities, incentive for further
development, impact on City services, and support for the industrial, commercial or health
care operations currently located in the City. A housing project must provide significant
housing opportunities for low and moderate income persons or the elderly.
5. The applicant must select a qualified financial adviser or underwriter to assist the applicant
in preparing all necessary application documents and materials. The financial adviser will
submit a letter that establishes the financial feasibility of the project. Applications may, in
the alternative, include a signed letter from a financial institution indicating that the project
is economically feasible and viable and stating that bonds can be successfully sold for the
project or that an individual or institution intends to purchase all of the bonds.
The City will appoint bond counsel for the bond issue, which will normally be the City's
regularly retained bond counsel.
6. Pursuant to the Industrial Development Act and the Housing Act, consideration of an
application for tax-exempt financing and issuance of related bonds must be done at a
public hearing held by the Council. The applicant or a representative of the applicant must
attend the public hearing. Modifications to the project after the public hearing and
preliminary approval must be consistent with the scope of the project as proposed at the
time of preliminary approval.
page 153
The applicant must receive approval from the appropriate state agencies, secure financing
and commence construction, if applicable, within one year of the date of the public hearing
on the project or the housing program.
7. The City is to be reimbursed and held harmless for and from any out-of-pocket expenses
related to the tax-exempt financing including, but not limited to, legal fees, financial
analyst fees, bond counsel fees, the City staffs expenses in connection with the
application, and any deposits or application fees required under state law in order to secure
allocation of bonding authority. The applicant must execute a letter to the City undertaking
to pay all such expenses. A form of the required letter is set forth as Part VII of these
Guidelines. In addition to the out of pocket fees listed above, a non-refundable application
fee in the amount of $2,500 must be included with the submission of the application.
8. Prior to closing and delivery of the bonds for the project, the applicant must pay an
administrative fee in an amount equal to the greater of $10,000 or .5% of the principal
amount of the bonds actually issued. The administrative fees required by this paragraph
will be adjusted at or paid prior to delivery of the bonds if necessary to ensure compliance
with the Internal Revenue Code and U.S. Treasury Regulations.
9. Applications for financing must be made on the forms attached to these Guidelines. In
addition, the applicant must furnish a description of the project, a site plan, elevation of
proposed buildings, landscape, lighting, and site preparation, if applicable, together with a
brief description of applicant and the proposed financing in such form as required at the
time of application.
10. The Council may, in its sole discretion, impose conditions exceeding those required under
the City building code in respect to exterior building materials, landscaping, signage
lighting, and such other aspects as the Council may consider appropriate on a case-by-case
basis.
11. The Council may, in its sole discretion, withdraw its preliminary approval of a project any
time if in its judgment the purposes of the Industrial Development Act or the Housing Act
will not be served by going forward with the project and its financing.
page 154
PART III
MISCELLANEOUS MATTERS
1. Refundings. In the case of refundings of bonds for which the administrative fee listed in
paragraph 8 of Part II have been paid in full, no new administrative fees are required; but
the non-refundable application fee must be paid together with all City expenses in excess
of that fee. If the administrative fees for the refunded bonds are not paid in full upon
closing on the refunding bonds, such fees must continue to be paid for the refunding bonds.
In the case of refundings of bonds where no administrative fee has ever been paid, the
administrative fees listed in paragraph 8 of Part II must be paid. The application form is to
be appropriately modified.
2. Subsequent Proceedings. Where changes to the underlying documents or credit facilities
of outstanding bond issues are to be made and require Council action (including changes
that are a "deemed reissuance" under Internal Revenue Service regulations), no
administrative fee is to be charged but a non-refundable fee of $1,500 must be deposited
with the City to cover administrative costs, and all City expenses in excess of the fee must
be paid. No formal application form is required.
3. Issue by Another Political Subdivision. The City will consider requests for tax-exempt
financing of projects in the City by other political subdivisions (i.e. "host approval"). In
these cases the non-refundable application fee must be paid and all procedures through the
approval of the preliminary resolution followed. No administrative fee is charged.
4. City Contact. Initial contacts about tax-exempt financing are made by contacting:
Finance Director
City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
5. Request for additional information or requirements. The City of Mendota Heights has the
right to request additional information that may be deemed necessary to consider requests
for tax-exempt financing of any project in the City of Mendota Heights.
6. Upon issuance of the Bonds. The City of Mendota Heights shall be copied in on all annual
certifications of documents that are sent to the U.S. Treasury Department, the Internal
Revenue Service, the State of Minnesota, the Minnesota Housing Finance Agency and/or
other governmental body for compliance purposes, as provided in the documents relating
to the bonds. Any and all signatures required on the documents supporting the tax-exempt
financing will be supplied at the convenience of the City.
7. Loss of Bank -Qualified Designation. Federal tax regulations limit municipalities to $10
million of "bank -qualified" tax-exempt bonds to be issued in a calendar year. Bank -
qualified bonds are generally more attractive to bank purchasers because they may deduct
page 155
certain carrying expenses when making such investments; this attractiveness typically
results in lower interest rates for bank -qualified tax-exempt bonds. It is possible that
conduit revenue debt issued by the City and designated as "bank qualified" may cause the
$10 million limit to be exceeded by the City in a given year, thereby making the City's
general obligation bonds (which would have otherwise been designated as bank qualified
in such given year) non-bank qualified and subject to higher interest rates. Therefore, the
applicant must covenant as part of the project financing documents to reimburse the City
for any higher interest costs related to the City's general obligation bonds having to be
designated as non-bank qualified bonds due to the conduit debt issuance. The City's legal
and financial consultants will determine the present value of the actual additional interest
costs due from loss of bank qualification, and such determination shall be conclusive and
final.
page 156
PART IV
APPLICATION FOR TAX-EXEMPT FINANCING
(Commercial, Industrial or Health Care)
1. APPLICANT
a. Business Name:
b. Business Address:
c. Business Form (corporation, partnership, sole proprietorship, etc.):
d. Authorized Representative:
e. Principal contact person and telephone number:
2. PURPOSE OF REQUESTED FINANCING:
a. New Facility (describe):
b. Expansion (describe):
c. Refunding (describe):
3. GIVE BRIEF DESCRIPTION OF NATURE OF BUSINESS, PRINCIPAL PRODUCTS,
ETC.:
4. ESTIMATED PROJECT COSTS: (Not required for refunding)
Land
Building
Equipment
Architectural, Engineering
Costs of Issuance
Capitalized Interest,
including discount
Other
$
Total Financing Requested $
5. AMOUNT OF FINANCING REQUESTED: $ ( % of project costs)
page 157
6. TYPE OF FINANCING PROPOSED:
Bonds Tax Exempt Mortgage Note
Expected Term of Financing Years
Security:
Mortgage
Letter of Credit
Guaranty (third party)
Guaranty (personal)
Unsecured
Other (specify)
7. BUSINESS PROFILE: (Not required for refunding)
a. Is the business currently located in the City of Mendota Heights?
b. Number of employees in City:
1) Before this project:
2) After this project:
c. Approximate annual sales:
d. Length of time in business:
Length of time in business in City:
e. Do you have facilities in other locations? If so, where?
f. Is any portion of the project to be financed religious in nature? If so, provide detail.
g.
If you are considering leasing a portion of the financed project, please provide detailed
information as to the tenant(s), the length of the lease, the rental amount, and other
particulars.
8. NAMES OF:
a. Underwriter or Lender (name and contact person):
b. Corporate Counsel:
page 158
c. Underwriter's or Lender's Counsel:
9. ANTICIPATED PERFORMANCE DATES: (Not required for refunding)
a. Construction start:
b. Construction completion:
10. ATTACHMENTS:
a. Project description:
b. Initial application fee
c. Indemnification Letter of Agreement
I certify that the information provided above contains no misrepresentations, omissions or
concealments of material facts and that the information given is true and complete to the best of
my knowledge. I have been furnished a copy of the Procedure for Application to the City of
Mendota Heights for Private Activity Revenue Bond Financing and am aware of its content and
agree to be bound by its terms and the terms of the indemnification letter.
Signature Date
Title
page 159
PART V
APPLICATION FOR TAX-EXEMPT FINANCING
(Multi -Family Housing)
1. APPLICANT
a. Business Name:
b. Business Address:
c. Business Form (corporation, partnership, sole proprietorship, etc.):
d. Authorized Representative:
e. Principal contact person and telephone number:
2. NAMES OF:
a. Underwriter or Lender (name and contact person):
b. Corporate Counsel:
c. Underwriter's or Lender's Counsel:
d. Property Management:
3. PURPOSE OF REQUESTED FINANCING:
a. New Facility (describe):
b. Redevelopment (describe):
c. Refunding (describe):
4. PROJECT NAME:
5. PROJECT LOCATION:
6. PROJECT INFORMATION
UNIT CURRENT RENTS RENTSAFTER AMI%*
Efficiency
One Bedroom
Two Bedroom
Three Bedroom
$
$
$
$
Parking (included in rent/
not included in rent) $
Laundry $
Utilities included in monthly rent:
page 160
*Please provide detailed information regarding how many units are currently
income/rent restricted and what the new number will be once the development is
completed.
OPERATING EXPENSES (Not required for 501(c)(3) financings)
% of Gross (Annual)
TOTAL PROJECT COST: $ DEVELOPER EQUITY: $
DEBT SERVICE: $ *HARD COSTS: $
LAND VALUE: $ SOFT COSTS: $
*(Hard Costs are all project costs the IRS has determined to be eligible items for
depreciation.)
ANTICIPATED INTEREST RATES: AMORTIZATION SCHEDULE:
% -Year Amortization Schedule
If the project were conventionally financed, what interest rate would you expect to pay?
%
SALES ASSUMPTION: DEPRECIATION METHOD:
(Not required for 501(c)(3) financings) (Not required for 501(c)(3) financings)
How many years do you plan to
hold the property before you
sell?
Years:
Type:
a. At what percent do you
feel the value of the project Amount of Total Basis: $
will appreciate?
EQUIPMENT:
$ of project cost is for equipment (e.g., washers/dryers)
page 161
ANTICIPATED INCREASES: ANTICIPATED VACANCY RATE:
(Not required for 501(c)(3) financings) (Not required for 501(c)(3) financings)
Revenue: % per year First Year: %
Expenses: % per year After First Year: %
CONSTRUCTION SCHEDULE: (Not required for refunding)
Anticipated construction commencement date:
Anticipated construction completion date:
7. RELOCATION PLAN (Not required for 501(c)(3) financings)
A relocation plan will be required if any of the residents are dislocated due to the
renovations or financing that is being utilized.
8. LEASES: If you are considering leasing a portion of the financed project, please provide
detailed information as to the tenant(s), the length of the lease, the rental amount, and other
particulars.
9. ADDITIONAL INFORMATION:
I certify that the information provided above contains no misrepresentations, omissions or
concealments of material facts and that the information given is true and complete to the best of
my knowledge. I have been furnished a copy of the Procedure for Application to the City of
Mendota Heights for Private Activity Revenue Bond Financing and am aware of its content and
agree to be bound by its terms and the terms of the indemnification letter.
Signature Date
Title
page 162
PART VI
ADDENDUM TO APPLICATIONS
The following items must be attached to each application:
APPENDIX A
A brief description of the organizational structure of Applicant, including parent subsidiary and
affiliate organizations (if applicant is other than an individual).
APPENDIX B
Statement of Applicant's business history (for applications under Part V, including any other
multi -family rental projects of the Applicant).
APPENDIX C
The name, address, and telephone number of:
1. The Applicant's legal counsel
2. The Applicant's accountant
3. The architect of the proposed Project (Not required for refunding)
4. The engineer of the proposed Project (Not required for refunding)
5. The general contractor of the proposed Project (Not required for refunding)
APPENDIX D
6. Present ownership of the proposed Project site and Applicant's interest therein.
7. Present zoning of the Project site and a description of what city land use approvals are
needed for this project.
8. The projected number of new employees to be added to the Applicant's permanent work
force because of the Project (for Commercial, Industrial or Health Care only).
9. Other financing attempted or available to the Project including any interim financing.
10. Statement regarding whether or not this project has all required city approvals. If the
project does not have all of the required approvals, list the approvals still needed and a
tentative time schedule.
page 163
APPENDIX E
Indemnification Letter of Agreement.
APPENDIX F (Not required for 501(c)(3) financings)
Proforma Analysis of the Project
page 164
PART VII
INDEMNIFICATION LETTER OF AGREEMENT
Mayor and City Council
City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
RE: Application of for Tax Exempt Revenue Bond Financing by the City
of Mendota Heights
Dear Mayor and Members of the City Council:
This letter of agreement is given by
laws of Minnesota ("Applicant") as required by
connection with its consideration of an application
project described in the application.
Applicant agrees as follows:
, a under the
the City of Mendota Heights, Minnesota in
for tax exempt revenue bond financing for the
1. Applicant agrees to pay or reimburse the City for any and all costs and expenses which the
City may incur in connection with its consideration of the project and the granting of tax
exempt revenue bond financing therefor, whether or not the project is preliminarily
approved by the City, whether or not the project is approved by the State of Minnesota,
whether or not revenue bond financing is finally approved by the City, whether or not the
bonds are issued and sold, and whether or not the project is carried to completion.
2. Applicant agrees to indemnify and hold the City, its officers, employees and agents
harmless against any and all losses, claims, damages, expenses or liabilities, including
attorneys fees incurred in their defense, to which the City, its officers, employees and
agents may become subject in connection with the City's consideration, issuance or sale of
the bonds for Applicant's project and the carrying out of the transactions contemplated by
this agreement and any resolutions adopted, or agreements executed by the City in
connection with the issuance of its bonds for this project.
3. Applicant hereby releases the City, its officers, agents and employees from any claims,
causes of action, losses, damages, or liabilities which it may have against the City, its
officers, agents, and employees or which it may incur in connection with: the City's
consideration of the application for industrial development revenue bond financing for
Applicant's project; the failure of the City, in its discretion, to issue tax-exempt revenue
bonds for Applicant's project; the issuance and sale of the bonds; the construction of the
project; or any other matter or thing of any type or nature whatsoever which may arise in
connection with the foregoing.
4. Applicant is aware of the City's application and administrative fee structure for tax-exempt
financing and agrees and covenants that all such fees will be paid in the amount and at the
times required.
Dated: (Applicant)
page 165
By
Its
page 166
City Application Fee Closing Fees Annual Service Fees Fees for Subsequent changes
(Non Refundable) (Non -refundable
Brooklyn Park $500 .5% of issuance .10% of outsanding
amount principal amount
St. Anthony Not listed 1% of orginal
principal amt
Cloquet $5,000 .5% of amount .125% of oustanding $1,500
being issued OR principal remaining
Roseville $2,500 > of $10,000, or $1,500
1% of principal
Minnetonka $3,500 .125% of outstanding $2,500
principal amount
Mound's View $500 1% of par value $500
of bonds
Anoka $2,500 > of $10,000, or $1,500
1% of principal
Lilydale $25,000 flat fee*
* For a $ 6 million bond issuance-- . Lilydale has also charged .25% and .50% of bond issue
Each City requires reimbursement of all legal and financial reviews by outside consultants.
page 167
Fees for Tax Exempt Debt Issuance
Andover
Yes
One-time fee 0.50% of bond issue.
Burnsville
Yes
$5,000 (currently looking at changing fee schedule)
Cottage Grove
Yes
One-time fee of 1% of bond issue.
Crystal
For Commercial/Health Care Issues - $2,500 non-refundable one time fee plus 1/2 of
1% of the first $5 million plus an additional 1/a percent on remaining balance with
maximum fee of $37,500.
For Housing projects — One-time fee of $3,000 for projects $5 million or less or
$5,000 one-time fee for projects of more than $5 million plus an annual fee in
addition to the one-time fee of 1/8 of 1 percent of the outstanding principal.
Eagan
Yes
$5,000 one-time fee.
Eden Prairie
Yes
$2,000 base fee + 1/8 of 1% annually on outstanding balance.
Edina
Yes
One-time fee of 1/2 of 1% of the principal bond issue.
Grand Rapids
Yes
$1,000 application fee; plus 1% one-time fee with minimum of $2,500
Hutchinson
Yes
Flat fee of $20,000
Jordan
Yes
$2,500 application fee; plus 1/a of 1 percent annual fee on outstanding principal
balance.
Lauderdale
Yes
1% of principal bond issue.
Lino Lakes
Yes
$2,500 application fee plus one-time 1% of principal bond issue administrative fee.
Little Canada
Yes
1% of principal bond issue.
Mankato
Yes
1% of principal bond issue
Maple Grove
Yes
1% of the principal amount of the bonds
page 168
Minneapolis
No
'/a of 1% annual fee on outstanding principal balance (1/8 of 1 percent collected
semi-annually).
New Hope
Yes
0.50% one-time fee
Richfield
Yes
$2,500 application fee phis '/4 of 1% annual fee per outstanding principal balance.
Rochester
Yes
0.25% one-time fee with $5,000 minimum and $25,000 maximum
Sartell
Yes
0.50% one-time fee - $50,000 maximum.
Scott County
Yes
1/8 of /z of 1% on monthly basis or 1/2 up front and spread rest over a period of
time.
White Bear Lake
Yes
0.25% one-time fee.
White Bear Township
Yes
0.25% one-time fee.
Rosemount
Yes
$5,000 application fee plus a one-time fee of 1% of the bond issue.
Survey of Cities with IRB Fees
November 2007
Ci
Upfront Application Fee
Separate
Reimbursement
of 3rd Partv Costs?* Onnoina Fees
C
page 169
Albert Lea
.25% of the principal amount
The City reserves the right to modify the administrative fee when, in the judgment of the Council,
that the project being financed with the obligations is of a level of merit and public purpose to
justify the modification.
Andover
Between 1/4 point & 1/2 point,
depending on size, smaller issues =
larger %
Yes
Austin HRA
1/10% of the issuance amount with
a min. fee of $5,000 and a max. fee
of 810,000.
Yes and specify use of City's attorney
Mostly housing -type bonds, does not charge an annual ongoing fee like some other HRA's do.
Bemidji
Based on size: <$1M $3,000; $1 -
5M $5,000 & >$5M $10,000
Yes
Bloomington
Processing fee based upon
schedule in comment section
Yes
In addition, a processing charge (fee) will be due the City (with 1/2 [but not less than $1,500] to be
submitted with the application, and which wit be non-refundable, and 1/2 due just prior to the City
Council acting on the Final Resolution), all based on the following schedule: 1) On the first
$5,000,000: $1.00 per $1,000; 2) On portion in excess of $5,000,000: $0.50 per $1,000
In the case of a refinancing, the fee shall be calculated at 50% of the above schedule. The City will
be reimbursed for any technical changes to a bond issue previously issued to be calculated at
25% of the above schedule.
Proposing to add the following charge beginning January 2008: The City will be reimbursed for any
technical changes to a bond issue previously issued to be calculated at 25% of the above
schedule.
Brooklyn Center
1% of face value of bonds upfront
at closing
Paid from 1%
Plus interest differential if it affects bank qualification.
Coon Rapids
1/4 percent of the par amount
Yes
Cottage Grove
Upfront 1% of par amount up to
$1OM, plus 1/2% of par amount
above $10M
Fergus Falls
$0
Yes
Hopkins
$5,000
Yes
annual administrative
fee of 0.125% of
outstanding principal
Maplewood
$3,400
Yes
If the bond issue closes, we charge 1% of the bond issue amount, up to a maximum of $28,600.
Survey of Cities with IRB Fees
November 2007
Cit
Upfront Application Fee
Separate
Reimbursement
of 3rd Party Costs?* Ongoing Fees
page 170
Minneapolis
see comments
In the past, Minneapolis just charged for its out-of-pocket expenses associated with the issuance
of conduit bonds. In 1981, the City of Minneapolis dropped its practice of charging for out-of-
pocket expenses and put in place an on-going annual administrative fee. The current fee structure
is:
1. For the issuance of any industrial/manufacturing IRBs, 501(c)(3) nonprofit revenue bonds and
multifamily housing revenue bonds the standard administrative fee is 1/8 of 1% times the
outstanding principal balance of the bonds on the day prior to the due date. This semiannual fee
is collected each January 1 and July 1 for the full term on the bond issue. For example, if we were
to issue $5 million in tax-exempt revenue bonds for a nursing home project, we would collect 1/8 of
1% times the $5 million or $6,250.00 as the initial semiannual payment to the City. For each
subsequent January 1 and July 1 throughout the term on the bond issue, we would assume that
the debt Is being amortized and that the outstanding principal balance is declining and the fee
collected would correspondingly decline as the bonds were paid off. We do not collect any
payment at the bond closing, in that all our costs are covered by the on-going administrative fees
that the City would collect over the term on the bond issue. There are plenty others (bond
counsel, underwriters, trustee) collecting a fee at the bond closing, so the City comes off as the "gc
2. On larger financings for the hospitals and others that may be tens or hundreds of million of
dollars, we cap our administrative fee. For example, on a $50 million hospital financing we would
collect semiannually 1/8 of 1% on the first $10 million of bonds outstanding, plus 1/16 of 1% on
the next $20 million of bonds outstanding, with nothing collected on any amounts over $30 million.
So, the fee would be semiannually 1/8 of 1% times $10 million or $12,500.00, plus 1/16 of 1%
times $20 million or $12,500.00 for a total of $25,000 semiannually or $50,000 a year. The fee
would stick at $25,000 semiannually until the outstanding balance dipped below $30 million, and
then it would start to decline along with the declining outstanding principal balance on the bonds.
Moorhead
$o
Yes
Northfield
$2,500
Ongoing % of
outstanding principal
Olmsted County
$3,000 to $25,000 deposit (based
upon 1/4% of issue amount)
Yes
The applicant must provide to the Chief Financial Officer documentation about the entity
requesting the assistance, the project, and the proposed financing method. The County also
requires that the applicant assume all of the costs incurred by the County in examining the legal
and fiscal aspects of the project as well as ongoing monitoring and reporting of outstanding bonds
once issued. The applicant must make a deposit of one fourth of one percent (114%) of the
proposed issuance amount with a minimum deposit of $3,000 and a maximum deposit of
$25,000. These funds will be applied against the costs incurred by the County for staff time, its
consultants, and any other expenses caused by the proposal. If the application is denied, the
deposit amount in excess of these costs will be refunded to the applicant. If the application is
approved, the full deposit will be retained to additionally cover costs of issuance and future
monitoring. In the event the County's actual costs exceed the deposit amount, the applicant will
be required to reimburse these additional amounts.
Owatonna
$1,000 application fee and a fee of
.5% of the bonds issued
Yes
Survey of Cities with IRB Fees
November 2007
City
Upfront Application Fee
Separate
Reimbursement
of 3rd Party Costs?* Ongoing Fees
Comments
page 171
Red Wing
$2,500
0.125% to 0.25% (see
comments)
annual admin fee: 1) private business & other organizations paying local property taxes, fee In the
amount of 0.25% of the principal amount at closing 2) businesses and organizations not paying
local property taxes, fee in the amount of 0.125% of the principal amount at closing, and annually
thereafter 0.125% of the outstanding principal amount of the bonds. The administrative fee may
be paid in a lump sum at bond closing, or may be paid semiannually while the bonds are
outstanding at the times specified in the bond documents
Richfield
$2,500.00.
Yes
Annual administrative
fee of 0.125% of the
outstanding principal
balance of bonds.
Rochester
1/4 of 1% of applied for face value,
minimum of $5,000 & maximum of
$25,000
Considering minimum of $7,500 & maximum of $50,000, fee utilized for own bond counsel review.
If costs exceed collection, difference billed and collected at closing. If direct costs are less than
the application fee, we retain the remainder to defray the cost of tracking these bonds over their
life. If bond approval is not obtained or the deal falls through, we usually wit refund any amount
collected that exceeds our direct (outside attomey) costs.
Rosemont
$5,000 app fee to cover staff costs,
1% administrative fee (based on
issue size)
Yes
Sauk Rapids
$2,500 plus one-time admin fee of
1% of original principal amt of
bonds
Shakopee
$5,200
Yes
St. Louis Park
Ongoing fee of 0.125%
on the outstanding
balance
St. Peter
80
Yes
We don't have a fee, but we don't cover any expense in it either
Wayzata
$0
Yes
No fees but did require that the transaction was no cost to the City other than a nominal amount of
staff time. The organizations requesting were all rock solid non -profits and well supported by the
public as doing good work. Council felt like helping them out as long as there was no cost to the
city. If the project required substantial staff time or city council meetings, then I believe we would
have charged them a fee to reimburse us for our time.
Ehlers
Range from .25% to 1% of par,
More for new money and less for a refunding. All finance related fees should be included in the
bond issue, whether paid from bond proceeds or cash from the company.
Best & Flanagan
We find that most cities charge a fee that is a percentage of the bond amount. Some charge fees
just at closing and some charge an ongoing annual fee. Fees tend to range for 1/10th to 1/8th of
one percent of the par amount of the bonds.
*Some cities may not have indicated whether they require reimbursement of third party costs (Le. attorney fees).
�m
CITY ❑F
MENDOTA HEIGHTS
page 172
1101 Victoria Curve 1 Mendr_-:.. !eights, MN 55118
651.452.1850 phone I 651.452.8940 fax
www.rnendota-heights.com
Request for City Council Action
MEETING DATE: March 15, 2016
TO: Mayor and City Council, City Administrator
FROM: John P. Maczko, Fire Chief
SUBJECT: Volunteer Fire Reserve Group
COMMENT:
Introduction
At the February 3, 2015, City Council meeting the City Council authorized the Fire Department
to work on forming a volunteer fire reserve group.
Background
Since that time, Fire Chief John Maczko, retired Firefighter Mickey Parker, and Fire Secretary
Nancy Bauer have completed a Reserve Firefighter Program Policy Manual. We would like to start the
process of appointing volunteer reserve firefighters. The size of the reserve group would not exceed 15
members. The reserve firefighters are expected to commit to 20 hours per year minimum and attend all
mandatory training and meetings for fire reserves. Those hours would be for fire prevention education in
the schools, station tours, public education programs for local businesses, fire prevention activities at
events, ability to bring fire equipment or service vehicles to the scene, support roles during emergencies,
etc.
Discussion
Each applicant for reserve firefighter would have to meet the criteria of the position description
which requires they be 18 years of age, have a high school diploma, be a retired firefighter in good
standing with the fire department they retired from, possess a valid MN driver's license, and have no
felony or gross misdemeanor convictions. To apply they will need to fill out a volunteer application,
participate in a selection process that would include an oral interview, and pass a background check.
Budget Impact
The costs associated with running a firefighter reserve group would include thorough background
checks, training of the reserves, workman's compensation insurance, uniforms and identification cards.
Recommendation
Staff recommends that the Mendota Heights City Council approve the implementation of a
volunteer firefighter reserve group.
Action Required
If Council concurs with the staff recommendation, they should approve the implementation of a
volunteer firefighter reserve group.
�m
CITY ❑F
MENDOTA HEIGHTS
page 173
1101 Victoria Curve 1 Mend -:.. !eights, MN 55118
651.452.1850 phone I 651.452.8940 fax
www.rnendota-heights.com
Request for City Council Action
MEETING DATE: March 15, 2016
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Workshop Meeting Dates
COMMENT:
Introduction
The Council is asked to establish meeting dates for one, and possibly two workshops in April or
May.
Background
Annually, the City Council has held a workshop meeting in May. A date should be established
at this time for one for 2016. While an agenda has not been set, we anticipate that there will be
follow-up actions from the Financial Summit (held February 9th) to consider, in addition to
Police and Engineering reports. We recommend Tuesday, May 24th
The Council should also consider scheduling a time to hold a workshop to hear the Police Study
report, which was conducted by the McGrath Consulting Group in February, McGrath included
in its scope of services a presentation of its findings and recommendations to the Council. It is
expected that the final copy of this will be available in late March, or early April.
While this presentation could be combined with the more general workshop to be held in May,
McGrath recommends an earlier presentation if possible. A meeting at 5:30 PM, to precede the
regular Council meeting on April 19th, is suggested as an alternative.
A calendar for April and May is attached.
Recommendation
Staff asks that the Council establish dates for the workshop(s).
Action Required
The Council should, by motion, establish dates for one or two workshops as described herein.
D
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