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2019-01-15 Council Agenda PacketCITY OF MENDOTA HEIGHTS CITY COUNCIL AGENDA January 15, 2019 – 7:00 pm Mendota Heights City Hall 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Adopt Agenda 5. Consent Agenda a. Approval of January 2, 2019 City Council Minutes b. Approval of January 2, 2019 City Council Work Session Minutes c. Approval of January 7, 2019 City Council Work Session Minutes d. Approval of Picnic Shelter Rental Policy e. Approval to Purchase Toro Ground Master Mower for Parks Department f. Approval to Purchase Exmark mower and Mulch Kit for Public Works Department g. Approval to Purchase Fire Turnout Gear h. Approval of Resolution 2019-11 Accepting Donation of Equipment i. Approval of the Building Activity Report j. Approval of November 2018 Treasurer’s Report k. Approval of Claims List 6. Citizen Comment Period (for items not on the agenda) *See guidelines below 7. Presentations a. Firefighter Badge Pinning –Rebecca Johnson 8. Public Hearing a. Resolution 2019-10 Ordering of Improvements for the Marie Avenue and Wesley Lane Neighborhood Improvements 9. New and Unfinished Business a. Resolution 2019-09 Action Regarding the Preliminary Assessment for Comcast Franchise Renewal b. Resolution 2019-07 Adoption of Plans and Specifications and Ordering of the Seeking of Bids for the 2019 Mendota Heights Fire Station Improvement Project c. Consideration of the Request to Purchase a Fairway Mower for Par 3 d. Resolution 2019-08 Appointments to Park and Recreation Commission e. Discussion of 2019 City Council Meeting Dates and Times 10. Community Announcements 11. Council Comments 12. Adjourn Guidelines for Citizen Comment Period: “The Citizen Comments section of the agenda provides an opportunity for the public to address the Council on items which are not on the agenda. All are welcome to speak. Comments should be directed to the Mayor. Comments will be limited to 5 minutes per person and topic; presentations which are longer than five minutes will need to be scheduled with the City Clerk to appear on a future City Council agenda. Comments should not be repetitious. Citizen comments may not be used to air personal attacks, to air personality grievances, to make political endorsements, or for political campaign purposes. Council members will not enter into a dialogue with citizens, nor will any decisions be made at that presentation. Questions from the Council will be for clarification only. Citizen comments will not be used as a time for problem solving or reacting to the comments made, but rather for hearing the citizen for information only. If appropriate, the Mayor may assign staff for follow up to the issues raised.” CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Wednesday, January 2, 2019 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 Garlock called the meeting to order at 7:15 p.m. Councilors Duggan, Miller, Paper, and Petschel were also present. OATH OF OFFICE MAYOR NEIL GARLOCK AND COUNCILMEMBERS ULTAN DUGGAN AND ELIZABETH PETSCHEL Mayor Neil Garlock and Councilors Ultan Duggan and Elizabeth Petschel took the Oath of Office, presided over by City Administrator Mark McNeill. PLEDGE OF ALLEGIANCE Council, the audience, and staff recited the Pledge of Allegiance. AGENDA ADOPTION Mayor Garlock presented the agenda for adoption. Councilor Petschel moved adoption of the agenda. Councilor Miller seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Mayor Garlock presented the consent calendar and explained the procedure for discussion and approval. Councilor Petschel recused herself from voting on item a.) Approval of December 18, 2018 City Council Minutes and item b.) Approval of December 18, 2018 Work Session Minutes. Councilor Duggan moved approval of the consent calendar as presented and authorization for execution of any necessary documents contained therein, pulling items a.) Approval of December 18, 2018 City Council Minutes, c.) Acknowledge the November 27, 2018 Planning Commission Meeting Minutes, e.) Designation of 2019 Acting Mayor, and i.) Approve 2019 Financial Items: Resolution 2019-05 Establishing 2019 City Depositories of Funds; Resolution 2019-06 Accepting Pledged Securities for 2019; and Authorize Finance Director to Execute Electronic Payments and Prepay Claims. page 3 a. Approval of December 18, 2018 City Council Minutes b. Approval of December 18, 2018 Work Session Minutes c. Acknowledge the November 27, 2018 Planning Commission Meeting Minutes d. Designation of the Official Newspaper e. Designation of 2019 Acting Mayor f. Approve Appointments to City Commissions; Approve Resolution 2019-01 Appointing NDC4 City Representatives g. Accept Determination of No Wetland for the Wesley Lane Neighborhood Improvements h. Accept Wetland Delineation Report for the Marie Avenue Neighborhood Improvements i. Approve 2019 Financial Items: Resolution 2019-05 Establishing 2019 City Depositories of Funds; Resolution 2019-06 Accepting Pledged Securities for 2019; and Authorize Finance Director to Execute Electronic Payments and Prepay Claims j. Acknowledge the October 9, 2018 Parks and Recreation Commission Minutes k. Approve September Par 3 Financial Report l. Approval of Claims List m. Approve the Purchase of Assistant Fire Chief Vehicle Councilor Miller seconded the motion. Ayes: 5 Nays: 0 Recused Item B: 1 (Petschel) PULLED CONSENT AGENDA ITEM A) APPROVAL OF DECEMBER 18, 2018 CITY COUNCIL MINUTES Councilor Duggan requested that clarification be added to the minutes regarding Chapter 429 – Local Improvements, Special Assessments statute referenced therein. Staff agreed to do so. Councilor Duggan noted his reference to “County Junction” under Council Comments should be “Celtic Junction”. Also, the last sentence of the same paragraph should reference Katie McMahon, who is an Irish-born harpist. Staff agreed to make the edits. Councilor Duggan moved to approve the December 18, 2018 City Council Minutes as amended. Mayor Garlock seconded the motion. Ayes: 4 Nays: 0 Recuse: 1 (Petschel) C) ACKNOWLEDGE THE NOVEMBER 27, 2018 PLANNING COMMISSION MINUTES Councilor Duggan expressed his concern of the revised public hearing guidelines and asked if the guidelines were different for the Planning Commission than they are for the City Council. He voiced his opinion that they should be similar to each other. Councilor Duggan suggested that this be a topic for further discussion by the City Council at a later time. Councilor Petschel moved to acknowledge the November 27, 2018 Planning Commission Meeting Minutes noting that a discussion of the Public Hearing Guidelines would take place at a future Council workshop meeting. page 4 Councilor Paper seconded the motion Ayes: 5 Nays: 0 E) DESIGNATION OF 2019 ACTING MAYOR Councilor Duggan stated that he was unaware of who the 2019 Acting Mayor would be. He was informed that the name was in the Council packet of materials; Councilor Joel Paper. Councilor Petschel moved to designate Councilor Joel Paper to serve as the acting mayor for 2019. Councilor Duggan seconded the motion. Ayes: 5 Nays: 0 I) APPROVE 2019 FINANCIAL ITEMS: RESOLUTION 2019-05 ESTABLISHING 2019 CITY DEPOSITORIES OF FUNDS; RESOLUTION 2019-06 ACCEPTING PLEDGED SECURITIES FOR 2019; AND AUTHORIZE FINANCE DIRECTOR TO EXECUTE ELECTRONIC PAYMENTS AND PREPAY CLAIMS Councilor Duggan expressed his curiosity about Resolution 2019-05 Establishing 2019 City Depositories of Funds as it listed Wells Fargo Bank and Wells Fargo Advisors, Inc. He asked what was difference was. Finance Director Kristen Schabacker replied that they are listed twice as the City’s investments are with Wells Fargo Advisors, Inc. and if the City ever had an opportunity to put deposits into Wells Fargo Bank, they would be considered two separate entities. Councilor Duggan moved to approve 2019 Financial Items: Resolution 2019-05 Establishing 2019 City Depositories of Funds; Resolution 2019-06 Accepting Pledged Securities for 2019; and Authorize Finance Director to Execute Electronic Payments and Prepay Claims. Mayor Garlock seconded the motion. Ayes: 5 Nays: 0 PUBLIC COMMENTS Councilor Duggan noted that he was driving north on Dodd Road and suddenly noticed that he was in the wrong lane. He was in the left turn lane for Wagon Wheel Trail and approaching the pedestrian refuge area. To quickly change lanes was a challenge. There is not a clear designation on the road with the white lines disappearing with the snowfall. He was wondering if using a different color of paint for the lane designations would help. He was sure it was a challenge for the Public Works Department. He wanted residents to be aware. He also wanted residents to be aware of the upcoming 2040 Comprehensive Plan meetings and hearings. PUBLIC HEARING No items scheduled. page 5 NEW AND UNFINISHED BUSINESS A) RESOLUTION 2019-02 APPROVING A CONDITIONAL USE PERMIT AMENDMENT FOR NEW ELECTRONIC LED DISPLAY SIGNS AT SPEEDWAY FUEL STATION – LOCATED AT 1080 HIGHWAY 62 (PLANNING CASE NO. 2018-28) B) RESOLUTION 2019-03 APPROVING A CONDITIONAL USE PERMIT AMENDMENT FOR NEW ELECTRONIC LED DISPLAY SIGNS AT SPEEDWAY FUEL STATION – LOCATED AT 1200 MENDOTA HEIGHTS ROAD (PLANNING CASE NO. 2018-29) Community Development Director Tim Benetti explained that Sevan Site Solutions, acting on behalf of Realty Income Properties 3, LLC and Speedway LLC were seeking to amend their two current Conditional Use Permits that were approved for their two SuperAmerica Stations a number of years ago. The 1080 Highway 62 site is located on the southeast corner of Highway 62 and Lexington; in a B-2 Neighborhood Business District; approximately 1.2 acres in size; and contains a 4,300 square foot gas station/convenience store and carwash bay; and a freestanding monument sign near the front northeasterly corner. The original Conditional Use Permit was adopted on April 16, 1996 as Resolution 96-20. The 1200 Mendota Heights Road site is located on the southeast corner of Highway 55 and Mendota Heights Road; in a B-3 General Business District; approximately 2 acres in size, and contains a 4,300 square foot gas station/convenience store and carwash bay; and a freestanding pylon style sign near the westerly edge along the Highway 55 frontage. The original Conditional User Permit for this site was adopted on April 16, 1996 as Resolution 96-21. Mr. Benetti reviewed the six standards that must be met pursuant to City Code Section 12-1D-15 SIGNS, subpart. I.3 for an Electronic Display at Motor Fuel Stations Conditional Use Permit. He shared how these requests met these standards. A question was asked about the different colored lights for the price of regular unleaded gasoline and diesel fuel, and if this complied with the standard that reads “the characters in an electronic display must be a uniform color”. The representative from Speedway explained the industry standard states that a fuel station would typically want their unleaded and diesel fuels to be easily distinguishable. The typical standard is using a red font for unleaded gasoline and a green font for diesel. Staff stated the different colors would not be a detriment to the health, safety, and welfare of the community. There would be no impact to traffic and it is in the spirit and intent of the ordinance. Since the character colors for each fuel grade read-out are uniform, then the displays and proposed sign improvements presented in this case complies with and meets all standards under the City Code. Councilor Paper asked if the signage lights would be turned off when the station is closed. Mr. Steve Morse, representing Speedway, stated that the signs could be turned off at the 1080 Highway 62 location when the station is closed. The Speedway at 1200 Mendota Heights Road is open 24 hours per day. page 6 Councilor Petschel stated that she has lived through previous lighting ordinances, and previously, LED signage in the city was viewed very reprehensible. However, the Council rewrote the lighting ordinance in anticipation of the fact that LED lights are more energy efficient and easy to change. Councilor Duggan moved to adopt RESOLUTION 2019-02 APPROVING A CONDITIONAL USE PERMIT AMENDMENT TO ALLOW AN ELECTRONIC LED DISPLAY SIGN FOR SPEEDWAY FUEL STATION LOCATED AT 1080 HIGHWAY 62 (PLANNING CASE NO. 2018-28) with the added condition that the LED lights would be turned off when the station was closed for business. Councilor Paper seconded the motion. Ayes: 5 Nays: 0 Councilor Petschel moved to adopt RESOLUTION 2019-03 APPROVING A CONDITIONAL USE PERMIT AMENTMENT FOR NEW ELECTRONIC LED DISPLAY SIGNS AT SPEEDWAY FUEL STATION – LOCATED AT 1200 MENDOTA HEIGHTS ROAD (PLANNING CASE NO. 2018-29). Councilor Duggan seconded the motion. Ayes: 5 Nays: 0 C) RESOLUTION 2019-04 APPROVING A VARIANCE FOR HEIGHT LIMITATION STANDARDS ON A NEW FIRE AND RESCUE TRAINING TOWER LOCATED AT 2121 DODD ROAD (PLANNING CASE NO. 2018-30) Community Development Director Tim Benetti explained that the Fire Department was seeking a variance to height limitation standard for a new fire and rescue training tower at 2121 Dodd Road. The current fire station was built in 1985, consists of 12,000 square feet with four truck bays, offices, and other areas. The site also contained a 34-foot fire hose tower that was used for the draining and drying of fire hoses after usage. Although this usage is no longer necessary, the tower is scheduled to remain in place with modifications in construction and usage. The plans for the expansion and construction of the new fire station project were approved by the City Council in July 2018. As part of this project, a new fire/rescue training tower on the northeast corner of the building has been included. This tower is proposed to be 40 feet 8 inches in height; slightly higher than the 37.5 feet limit allowed in the R-1 zoning standards. The tower is intended to mimic a typical commercial or multi-family stairwell facility in order for the fire personnel to train inside of it as if it were a true stairwell; it would include windows and a repelling ledge on the top. Mr. Benetti shared the criteria the city needed to follow for variance requests as cited in City Code Section 12-1L-5. He explained how this request met those criteria. Prior to the meeting, City Attorney Andre Pratt requested Finding of Fact E. be added to the resolution: E. The factual findings and analysis found in the Planning Report dated December 20, 2018 is hereby fully incorporated into this resolution page 7 Councilor Petschel moved to adopt RESOLUTION 2019-04 APPROVING A VARIANCE FOR HEIGHT LIMITATION STANDARDS ON A NEW FIRE AND RESCUE TRAINING TOWER AT THE CITY’S FIRE STATION PROPERTY – LOCATED AT 2121 DODD ROAD (PLANNING CASE NO. 2018-30) as amended. Councilor Duggan seconded the motion. Ayes: 5 Nays: 0 D) ESTABLISH DATE FOR INTERVIEWS FOR COMMISSION APPLICANTS City Ad ministrator Mark McNeill explained that there are nine applicants for the Planning Commission position that is open and nine applicants for the two Parks & Recreation Commission position openings. Staff suggested separate meeting nights for the interviews. The Parks and Recreation Commission interviews was suggested to be set for 4:30 pm on January 15, 2019. The Planning Commission interviews was suggested to be set for 4:30 pm on February 5, 2019. The Council determined that the interview meeting dates and times would be set as suggested. COMMUNITY ANNOUNCEMENTS City Administrator Mark McNeill announced that the ice rinks are open, however, residents should call the City Ice Rink Hotline or check the Parks and Recreation Facebook page for additional information. COUNCIL COMMENTS Councilor Duggan, referencing a story in the Pioneer Press, extended best wishes and prayers to Bert McKasy that he continues to meet the challenge that he is facing. He also expressed congratulations to Paul Schnell for being named Minnesota’s Commissioner of Corrections. This is the second Commissioner of Corrections to live in Mendota Heights. He extended congratulations to his cousin, Bill Palmquist, as the mayor elect of Afton, MN. Councilor Paper wished good health in 2019 to Mayor Garlock and congratulated him on another year of perfect attendance for Council meetings. Councilor Miller wished all a Happy New Year and a belated happy birthday to Mayor Garlock. He also thanked the local businesses who participated in the 3rd annual Great Mendota Heights Pub Crawl on December 28, 2018. The owner of Mendota Liquor was gracious in hosting them for an impromptu wine tasting. They are looking at doing a summer pub crawl. He thanked Pat Fitzgerald for watching the Council meetings religiously and for his leadership this year. Councilor Petschel expressed well wishes and prayers for Bert McKasy. The Pioneer Press article was about hospice care, which is growing and more accepted today. The McKasy family’s story was shared beautifully. page 8 She asked if the city had any news on the promised flashing yellow arrow from Dodd Road to westbound I-494. Public Works Director Ryan Ruzek replied that it is part of the completed Dodd Road project, and it should be installed this spring. Mayor Garlock thanked City Administrator Mark McNeill for arranging the meeting with MnDOT regarding Dodd Road that was held prior to this Council meeting. This issue is on-going and communications with the residents will continue. ADJOURN Mayor Garlock moved to adjourn. Councilor Paper seconded the motion. Ayes: 5 Nays: 0 Mayor Garlock adjourned the meeting at 7:58 p.m. ____________________________________ Neil Garlock Mayor ATTEST: _______________________________ Lorri Smith City Clerk page 9 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the City Council Work Session Held January 2, 2019 Pursuant to due call and notice thereof, a work session of the City Council, City of Mendota Heights, Minnesota was held at the City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Garlock called the meeting to order at 6:00 pm. Councilmembers Duggan, Miller, Paper and Petschel were also present. City staff present included Mark McNeill, City Administrator; Cheryl Jacobson, Assistant City Administrator; Community Development Director Tim Benetti; Ryan Ruzek, Public Works Director; and Lorri Smith, City Clerk. DISCUSSION WITH MNDOT REGARDING DODD ROAD CHANGES Molly Kline, representing Minnesota Department of Transportation, was present to review the reasons changes were made to Dodd Road. The 2018 project included resurfacing, drainage improvements, and pedestrian improvements to Dodd Road, from I494 to the High Bridge in St. Paul. Will Stein, representing the Federal Highway Administration, spoke about the safety features incorporated into the redesign of Dodd Road. The road used to include short segments of bypass lanes for vehicles to get past other vehicles making left hand turns in the area from Mendakota Court to Pagel Road. The road improvements changed this configuration for safety reasons. The improvements now include dedicated left-hand turn lanes. Mr. Stein stated that it has been proven that bypass lanes do not work as well as dedicated left- hand turn lanes. Bypass lanes are not being installed when changes are made to highways. Exclusive left hand turn lanes are the safest way for vehicles to make a turn. He stated the additional cost substantiates the safety benefits. These are proven safety countermeasures and reduce crashes. The pedestrian refuge (center island) that was installed at Wagon Wheel Trail is a proactive improvement for this pedestrian crossing and improves the safety for pedestrians at this area. Councilor Petschel stated that some residents have concerns about getting in and out of the Friendly Hills residential area. It was noted that MnDOT has not limited any options for turns and that traffic can still make a left hand turn onto Pagel Road or Keokuk Lane. page 10 Comments from the public included: Bernie Friel, 750 Mohican Lane, stated that a left hand turn lane onto Pagel Road has been eliminated. He felt that a pedestrian refuge should have also been included at South Plaza Drive, to be consistent with the Wagon Wheel Trail pedestrian crossing. He said that there is no data to suggest that safety in this area has ever been a problem. Jim Losleben, 815 Hazel Court, stated that traffic travels at 40 to 50 miles per hour in this area. The pedestrian refuge at Wagon Wheel Trail is still not safe for pedestrians. The Keokuk Lane and Bluebird Drive intersection is not a straight intersection and makes it hard to see oncoming traffic traveling along Dodd Road. ADJOURN The meeting was adjourned at 7:10 pm. ___________________________ Neil Garlock, Mayor ____________________________ Lorri Smith, City Clerk page 11 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Council Work Session Monday, January 7, 2019 Pursuant to due call and notice thereof, a work session of the Mendota Heights City Council was held at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Garlock called the meeting to order at 12:00 p.m. Councilmembers Duggan, Miller, Paper and Petschel were also present. Staff in attendance included City Administrator Mark McNeill, Assistant City Administrator Cheryl Jacobson, Finance Director Kristen Schabacker, Public Works Director Ryan Ruzek, Community Development Director Tim Benetti, Police Chief Kelly McCarthy, City Attorney Andy Pratt, and City Clerk Lorri Smith. VILLAGE MORTGAGE City Attorney Andy Pratt reviewed with the Council an outstanding mortgage that is owed to the City by RMF Group, the management company at The Village at Mendota Heights. This is for the parcel referred to as the ‘ABC parcel’. The City sold the ABC parcel to Mendota Heights Town Center, LLC, the developer of the property, for $295,505. $265,954.50 of that amount was deferred and would be paid by the developer to the City over time. The City was to assist the development by selling off various parcel of land. The proceeds from the land sales were to be primarily used to construct parking facilities. Attorney Pratt has been researching the issue of a possible remaining amount in an escrow account. RMF has asked that any remaining amount in this account be credited to the outstanding balance of the mortgage. City records show the escrow account rose and fell based on the deposit of land sale revenues and requested disbursements for parking facility construction. The account was closed in July 2013. The Council discussed how they would like to proceed with this issue. Staff was directed to contact former Mayor John Huber, former City Councilmember Jack Vitelli, Prior Lake State Bank, and RMF Group to see if they have any additional information. GOAL SETTING SESSION Facilitator Mark Nagel directed a goal setting session with the Council and staff. City Administrator Mark McNeill reviewed the goals and status thereof which were identified in May, 2017. Council and staff then submitted new goals that they thought were important for the City accomplish over the next 18 months. The goals were then grouped into the following categories: page 12 Communications: 1. Work to receive better cell phone coverage in our city. 2. Complete a resident survey. 3. Receive quarterly reports from Fire Department. 4. Building better connections with/engage our community. 5. Prepare for the 2020 census. Governance: 1. More face-to-face communication with local leaders (MetCouncil, State Legislators, MAC, etc.) 2. Create a Yellow Ribbon Committee, partner with area cities’ Yellow Ribbon Committees 3. Seek additional partnerships with area cities 4. Show more civility shown at public meetings 5. Update the commissions’ bylaws / hold commission members orientation training 6. Lessen the airplane noise 7. Broadcast ARC meetings on NDC4 8. Create a City IT Commission 9. Create a partnership with the newly formed Mendota Heights Foundation 10. Create a Kids Council Parks: 1. Creation of additional athletic fields 2. Offer additional summer adult programming 3. Reimage park space 4. Find a permanent source for Parks funding 5. Involve more youth 6. Partner with West St. Paul for drop-in youth programming Facility Improvements: 1. Complete a Police department space analysis study 2. Update of Administration offices, breakroom, restrooms, other public spaces in City Hall 3. Create a Fire Station room reservation policy Operational Improvements: 1. Update zoning and platting ordinances 2. Completion of the 2040 Comprehensive Plan 3. Purchase of permitting / licensing software 4. Move to be more paperless / scan permanent records into Laserfiche 5. Upgrade Finance accounting software 6. Transition to close city hall on Friday afternoons, open longer hours M-Th 7. Complete an additional street sweeping (go to 3x per year) 8. Update snowplowing best practices 9. Greensteps City sustainability 10. Update the Natural Resources Plan Public Safety: 1. Complete an active shooter tabletop training exercise 2. Create a Citizens Advisory Panel for Police Department page 13 Transportation: 1. Participate with area cities in regional planning for transportation issues - Dodd/Delaware Economic Development: 1. Market and sell the vacant Village lots for development. 2. Initiate a local lodging tax. ADJOURN Mayor Garlock adjourned the meeting at 3:00 p.m. ____________________________________ Neil Garlock, Mayor ATTEST: _______________________________ Lorri Smith, City Clerk page 14 Request for City Council Action DATE: January 15, 2019 TO: Mayor and City Council, City Administrator FROM: Meredith Lawrence, Recreation Program Coordinator Cheryl Jacobson, Assistant City Administrator SUBJECT: Approval of Revised Picnic Shelter Rental Policy INTRODUCTION Staff is requesting City Council approval of a revised Mendota Heights Picnic Shelter Rental Policy. BACKGROUND The City has six parks with picnic shelters available for the public to rent. In 2018, the City received approximately 45 picnic shelter reservation requests. On February 7, 2018 the City Council approved the Mendota Heights Recreational Facilities Reservation/Special Event Policy. Staff has found it necessary to have separate policies for the following categories: fields/facilities, picnic shelters, and special events. This revised policy outlines the process and restrictions when reserving a picnic shelter in Mendota Heights. If approved, the updated policy would be effective for the 2019 rental season and going forward. BUDGET IMPACT None. RECOMMENDATION Staff recommends that the City Council approve the revised Mendota Heights Picnic Shelter Rental Policy. ACTION REQUESTED If the council concurs, it should by motion, approve the amended Mendota Heights Picnic Shelter Rental Policy, as attached. page 15 CITY OF MENDOTA HEIGHTS PICNIC SHELTER RENTAL POLICY CONTACT: Mendota Heights Parks and Recreation 1101 Victoria Curve Mendota Heights, MN 55118 651-452-1850 APPROVED: xxxxx,xxxxx page 16 City of Mendota Heights Picnic Shelter Rental Policy A. Purpose The City of Mendota Heights, hereinafter referred to as the “City”, coordinates and issues permits for the use of picnic shelters owned by the City. The purpose of this policy is to establish guidelines to promote orderly and effective use and enjoyment of City picnic shelters and parks. B. Picnic Shelter Use Permits Picnic shelter permits are issued following the City’s picnic shelter permit process. A permit is issued only after a request is made, all required documents and information is received, and the City has approved the request, either in-part or in its entirety. A request does not constitute an approval. Permit applicants must be 18 years of age or older. Requests may be submitted throughout the year and will be considered on a first come, first serve basis. Permit requests shall be submitted at least two (2) days in advance of the desired date of the event. Application forms will be made available at City Hall or on the City’s website The City reserves the right to deny, limit or revoke use permits based upon an applicant’s performance history including compliance with the terms and conditions of use, park shelter conditions after use, and unruly behavior of participants and guests. C. Terms and Conditions of Use • The permit holder is required to be on-site during the entire event including set-up and clean-up of the event. A copy of the issued permit must be retained during the entire time of the rental and shown upon request. • Picnic shelter reservations are for the picnic area only. Users that have a permit are allowed to use the permitted picnic shelter space, but public park areas including playgrounds, hard court surfaces, and grassy areas will remain open for use by the public and therefore cannot be reserved, roped off or otherwise restricted from use by the public. • Reasonable decorating of the shelter is allowed. Temporary objects, signs, banners and other materials must be removed from City property at the conclusion of the event. Users are not allowed to attach objects to trees, shrubs or park features. • The use of inflatable play equipment and similar items are prohibited in City parks. Water activities that can cause damage to the facility and/or grounds are not permitted. page 17 • All users of City park shelters and areas are expected to leave the area(s) in the same or better condition than which it was found. Users are expected to dispose of waste in proper trash and recycling receptacles. The City of Mendota Heights prides itself on being a clean and green community, and renters are asked to recycle as much of their waste as possible. D. Non-Use of Reserved Picnic Shelters When permits are issued, a specific picnic shelter is reserved for the user, to the exclusion of others. Recognizing this exclusivity, users should only reserve the picnic shelter intended for use. Any user that has reserved a picnic shelter and subsequently determines that it cannot use it shall notify the City so that the shelter may be used by another user or the general public. E. Fees The City may charge application and use fees in order to recover public costs to operate, maintain, repair, improve and administer the use of City picnic shelters. For each application submitted, an application fee shall be assessed. Picnic shelter use fees shall be approved by the City Council and included in the City’s Fee Schedule. Use fees are subject to change at the discretion of the City Council. All users who receive a permit for exclusive use of a picnic shelter must pay the appropriate fee per the City fee schedule. Payments for permits must be received in advance of the start of the reservation. Payments can be made by cash, check or credit/debit card. Additional fees may be charged based on the size of the group and the additional facilities requested such as a picnic tables. F. Cancellation Policy The City attempts to be flexible in accommodating user groups, but ultimately, the health and safety of the user and the condition of a park and picnic shelter takes priority. This may require the closure of picnic shelters, denial of use of picnic shelter, and/or the assignment of an alternate site for use. Picnic shelter closures will be communicated to permit holders by the Recreation Program Coordinator. Permits cancelled by the City of Mendota Heights may be rescheduled as availability allows, or may be refunded in full. Permits cancelled due to non-adherence with the picnic shelter use policy, City Ordinances, or terms and conditions of use will not be refunded. If the user cancels the event due to inclement weather, the permit holder should contact the City to reschedule the event. There shall be no refunds for weather-related cancellations. However, the permit holder may request to reschedule the event during the same calendar year at no additional charge. page 18 Reservations which are cancelled more than seven (7) days in advance will receive a 100% refund. Reservations that are cancelled less than seven (7) days in advance will not be entitled to a refund. The application fee is non-refundable regardless of the date cancelled. G. City Contact All communication with the Recreation Program Coordinator must be made through the permit holder. This eliminates confusion and establishes direct, efficient communication. Users should report any damage, accidents, dangerous or unsafe conditions to: City of Mendota Heights Recreation Program Coordinator Phone: 651-255-1354 or 651-452-1850 (Monday – Friday from 8:00 am to 4:30 pm) After Hours Phone: 651-302-3301 Email: meredithl@mendota-heights.com page 19 Request for City Council Action DATE: January 15, 2019 TO: Mayor, City Council, and City Administrator FROM: Terry Blum, Public Works Superintendent SUBJECT: Approval to Purchase a Toro Ground Master - Parks COMMENT: Introduction The Council is asked to approve the purchase a Toro Ground Master for use by the Public Works Department. The vendor is anticipating the cost of steel to rise after February 1, 2019. This is why staff is requesting the approval of this purchase at the Council’s January 15, 2019 meeting. Background The 2019 City Budget includes funding for the purchase of a new Toro Ground Master to replace the mower purchased in 2009, which has become a high maintenance item. Staff received a quote from the state contract from MTI Distributing. The quote is for a Ground Master 5910 mower with safety cab for a price of $99,578.26. This includes a trade-in value of $16,500. This is below the budgeted amount in the Public Works Park Budget of $100,000.00. Budget Impact The net cost after trade-in is $99,578.26. This is $421.74 below the 2019 budgeted amount. Recommendation Staff recommends that the City Council authorize the purchase of a new Ground Master mower from MTI Distributing. Action Required If the City Council concurs, it should, should pass a motion authorizing the purchase of a new Ground Master mower from MTI Distributing, for the purchase price of $99,578.26. page 20 Request for City Council Action DATE: January 15, 2019 TO: Mayor, City Council, and City Administrator FROM: Terry Blum, Public Works Superintendent SUBJECT: Approval to Purchase a Parks Mower COMMENT: Introduction The Council is asked to approve the purchase of a lawn mower for use by the Public Works Department. Background The 2019 City Budget includes funding for the purchase of a new mower for use by the Public Works Department. This purchase would replace the existing 2007 Exmark mower. The current mower is constantly experiencing mechanical problems. Staff received a quote from the state contract from Gerlach Outdoor Power Equipment, Inc. The quote is for an Exmark mower for the price of $17,221 and a mulch kit for the price of $336. The trade-in for the 2007 mower as stated on the quote is $1,500. The total cost of the new mower, mulch kit, and the trade-in value is $16,057. This is below the budgeted amount in the Public Works Parks Budget of $17,000. Budget Impact The net cost after trade-in is $16,057, which includes the mower, a mulch kit and the trade-in price. This is $943 below the amount of $17,000 that is included in the 2019 City Budget. Recommendation Staff recommends that the City Council authorize the purchase of a new Exmark mower and mulch kit, from Gerlach Outdoor Power Equipment, Inc. Action Required If the City Council concurs, it should, should pass a motion authorizing the purchase of a new Exmark mower and mulch kit in the amount of $16,057 from Gerlach Outdoor Power Equipment, Inc. page 21 DATE: January 15, 2019 TO: Mayor and City Council Mark McNeill, City Administrator FROM: Dave Dreelan, Fire Chief SUBJECT: Fire Turn-out Gear Purchase INTRODUCTION The City Council is asked to approve the purchase of six sets of fire turnout gear by the Mendota Heights Fire Department. BACKGROUND The 2019 fire department budget allows for the purchase of up to six sets of turnout gear. These are the pants, coats, and suspenders worn when responding to a fire. A recent inspection of the gear by the department’s safety committee found that there are 6 sets of gear that are in immediate need of replacement. For quality and consistency our gear is made to a specific MHFD specification by one national manufacture and sold through one licensed dealer in the state of Minnesota. This has been the case for at least the last 15 years. The supplier is Fire Equipment Specialties. BUDGET IMPACT The total amount of the quote was $16,757 from Fire Equipment Specialties. This expense was planned for in the 2019 budget. Funds from the fire department operating budget will be used to purchase the turnout gear. RECOMMENDATION It’s my recommendation that we move forward with the turn-out gear purchase for the estimated amount of $16,757 from Fire Equipment Specialties. ACTION REQUIRED If the City Council agrees, it should pass a motion authorizing the purchase of six sets of fire turnout gear from Fire Equipment Specialties in the amount of $16,757. page 22 DATE: January 9, 2019 TO: Mayor, Council and City Administrator FROM: Kelly McCarthy, Chief of Police SUBJECT: RESOLUTION NO. 2019-11 FORMALLY ACCEPTING DONATION OF EQUIPMENT 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 by having the City Council formally accept the gift and recognizing the donor. Lifetime Fitness facilitated the donation of a Life Fitness Flex treadmill, a Life Fitness stationary bike, a Force Matrix cable cross, and a Precor bench press rack to the police department. Access to this equipment affords officers the opportunity to better their overall health and wellness and maintain a fitness level necessary for the policing profession. A thank you letter will be sent along with a copy of the signed resolution. BUDGET IMPACT There is no budget impact. RECOMMENDATION If Council desires to implement the recommendation, a motion will need to be passed adopting RESOLUTION NO. 2019-11 FORMALLY ACCEPTING DONATION OF EQUIPMENT. page 23 City of Mendota Heights Dakota County, Minnesota RESOLUTION 2019-11 A RESOLUTION FORMALLY ACCEPTING A DONATION OF EQUIPMENT WHEREAS, Minnesota State Statute 465.03 “Gifts to Municipalities” requires a resolution to be approved by the governing body to accept gifts to municipalities; and WHEREAS, the City of Mendota Heights has previously acknowledged gifts by resolution as required by law; and WHEREAS, the City of Mendota Heights encourages and supports citizens and organizations who wish to participate in government; and WHEREAS, the City Council of the City of Mendota Heights have duly considered this matter and wish to officially recognize the donation. NOW THEREFORE BE IT HEREBY RESOLVED that the City Council of the City of Mendota Heights hereby gratefully accepts the donation of fitness equipment from Lifetime Fitness. Adopted by the City Council of the City of Mendota Heights this fifteenth day of January 2019. CITY COUNCIL CITY OF MENDOTA HEIGHTS ________________________________________ Neil Garlock, Mayor ATTEST: ______________________________ Lorri Smith, City Clerk page 24 1/7/2019 Mendota Heights Building Activity Report Mike Andrejka, Building Official December 1, 2018 thru December 31, 2018 January 1, 2018 thru December 31, 2018 January 1, 2017 thru December 31, 2017 January 1, 2016 thru December 31, 2016 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 0 -$ $0.00 SFD 9 4,717,052.00$ $53,035.56 SFD 8 4,376,940.34$ $47,366.57 SFD 10 4,801,562.00$ 54,162.40$ Apartment 0 -$ $0.00 Apartment 1 9,466,820.00$ $65,710.84 Apartment 2 23,022,000.00$ $158,402.65 Apartment 0 -$ -$ Townhouse 0 -$ $0.00 Townhouse 18 3,938,993.89$ $43,000.88 Townhouse 16 3,540,000.00$ $35,684.86 Townhouse 18 4,145,000.00$ 43,118.57$ Condo 0 -$ $0.00 Condo 0 -$ $0.00 Condo 0 -$ $0.00 Condo 0 -$ -$ Misc 20 595,859.00$ 6,337.28$ Misc 590 8,910,048.57$ 119,773.23$ Misc 643 9,733,590.85$ 130,450.56$ Misc 631 8,006,650.43$ 113,986.75$ Commercial 0 -$ $0.00 Commercial 16 7,443,309.00$ $63,172.89 Commercial 34 9,786,690.00$ $97,786.46 Commercial 30 8,387,304.00$ 72,870.26$ Sub Total 20 595,859.00$ 6,337.28$ Sub Total 634 34,476,223.46$ 344,693.40$ Sub Total 703 50,459,221.19$ 469,691.10$ Sub Total 689 25,340,516.43$ 284,137.98$ 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 14 $1,277.35 Plumbing 219 $33,091.94 Plumbing 202 $32,659.61 Plumbing 183 16,614.12$ Water 0 $0.00 Water 0 $0.00 Water 0 $0.00 Water 3 30.00$ Sewer 3 $225.00 Sewer 40 $3,000.00 Sewer 37 $2,788.00 Sewer 30 2,250.00$ Mechanical 27 $5,186.92 Mechanical 476 397.00$ $62,212.81 Mechanical 397 $61,611.76 Mechanical 382 47,801.09$ Sub Total 44 6,689.27$ Sub Total 735 98,304.75$ Sub Total 636 $97,059.37 Sub Total 598 66,695.21$ License No.Valuation Fee Collected Licenses No.Valuation Fee Collected Licenses No.Valuation Fee Collected Licenses No.Valuation Fee Collected Contractor 39 $1,950.00 Contractor 321 $16,050.00 Contractor 328 $16,400.00 Contractor 310 15,500.00$ Total 103 595,859.00$ 14,976.55$ Total 1690 34,476,223.46$ 459,048.15$ Total 1667 50,459,221.19$ 583,150.47$ Total 1597 25,340,516.43$ 366,333.19$ NOTE: All fee amounts exclude SAC, WAC and State Surcharge. Amounts shown will reflect only permit, plan review fee and valuation totals page 25 page 26 page 27 page 28 page 29 page 30 page 31 page 32 page 33 page 34 page 35 page 36 page 37 page 38 page 39 To: Mayor and City Council From: Dave Dreelan, Fire Chief Mark McNeill, City Administrator Subject: Badge Pinning—Becky Johnson Date: January 15, 2019 Comment: At the January 15th City Council meeting, Firefighter Becky Johnson will receive her badge as a member of the Mendota Heights Fire Department. Firefighters received their badges at the end of their one year probationary period and when they complete their basic training. Ms. Johnson has been a member of the MHFD since December 5, 2018. Becky has recently completed Firefighter 1 & 2, Hazardous Materials Operations, Emergency Medical Responder and Fire Instructor 1. Becky’s husband Dan, (also a MHFD member) will be pining Becky tonight. page 40 REQUEST FOR COUNCIL ACTION DATE: January 15, 2019 TO: Mayor, City Council, and City Administrator FROM: Ryan Ruzek, P.E., Public Works Director SUBJECT: Resolution 2019-10 Ordering of Improvements for the Marie Avenue and Wesley Lane Neighborhood Improvements Project No. 201803 COMMENT: INTRODUCTION The purpose of this memo is to request that the Council hold a public hearing for the Marie Avenue and Wesley Lane Neighborhood Improvements. BACKGROUND Marie Avenue and streets in the Wesley Lane area are in a deteriorated state. As a result, on August 7, 2018, the City Council adopted Resolutions 2018-68 and 2018-59, which ordered the preparation of a feasibility report for those streets. Because a portion of the funding is to be through assessments against the benefitted properties, the City must follow a procedure outlined in Minnesota Statutes Annotated Chapter 429. That feasibility report for the Marie Avenue and Wesley Lane Neighborhood Improvements was accepted by the Mendota Heights City Council. It called for a Public Hearing to be held on January 15, 2019, when it adopted Resolution 2018-100 at the December 18, 2018, Council meeting. The recommendation of the feasibility report was to proceed with this project. The proposed streets to be rehabilitated are Mager Court, Marie Avenue (Lexington Avenue to Dodd Road), South Lane (Linden Street to the cul-de-sac), Spring Creek Circle, Wesley Court, and Wesley Lane. Based on staff observations, as well as the City’s pavement management system, a majority of these streets have deteriorated to the point where it is no longer cost effective to patch the street and rehabilitation is necessary. Staff has received several telephone inquiries as to when resurfacing will take place on Marie Avenue. DISCUSSION The feasibility report indicates the estimated costs for the project, along with preliminary assessment estimates. At the end of the feasibility report, a project financing summary is included to show project cost splits and funding sources to be utilized. The total estimated cost of the project is $4,698,610, including indirect costs. The project is proposed to be constructed in two phases. Phase 1 would include Wesley Neighborhood street improvements, Dodd Road trail from Maple St. to Marie Avenue, Pond sediment removal, retaining walls and fencing, land bridge repair, pedestrian tunnel replacement, watermain replacement, Marie Avenue street page 41 improvements from 35E to Dodd Road including trail rehabilitation. Phase 2 would include Marie Avenue street rehabilitation from Lexington Avenue to 35E including trail rehabilitation, Lexington Avenue trail realignment, pond sediment removal, and retaining walls and fencing. Issues A Neighborhood Informational Meeting was held on January 9, 2019 to provide the property owners an opportunity to discuss the projects in an informal setting prior to the Public Hearing. Staff presented the proposed improvements, project costs, estimated assessments; and answered resident’s questions. 27 residents attended the informational meeting representing 21 properties. There were no significant objects raised. BUDGET IMPACT Street improvement projects are proposed to be assessed to the benefiting property owners. Pursuant to the City’s Street Rehabilitation and Reconstruction Policy, the benefiting properties should be assessed 50% of the street reconstruction and rehabilitation costs. The following tables show the estimated unit assessments based on the City policy. PROJECT COSTS (PHASE 1, 2019) ITEM ESTIMATED COST* Marie Avenue street improvements (35E to Dodd Rd)** $793,713 Watermain replacement (Sutton Lane to Dodd Road) $59,813 Pedestrian tunnel $345,585 Trail rehabilitation on Marie Avenue (35E to Dodd) $57,874 Land bridge repair $513,594 Retaining walls and fences $70,504 Pond sediment removal $62,561 Wesley Neighborhood street improvement** $717,146 Trail construction on Dodd Rd (Wesley to Maple) $221,634 Trail construction on Dodd Rd (Marie to Wesley) $173,826 Total Cost, Phase 1 $3,016,249 PROJECT COSTS (PHASE 2, 2020) ITEM ESTIMATED COST* Marie Avenue street improvements (Lexington to 35E)** $1,135,869 Trail rehabilitation on Marie Avenue (Lexington to 35E) $57,874 Trail realignment on Lexington (Marie to Orchard) $295,911 Retaining walls and fences $71,896 Pond sediment removal $120,811 Total Cost, Phase 2 $1,682,361 *Estimated costs include 10% contingency & 15% indirect cost **Assessable cost page 42 PROJECT FUNDING (PHASE 1, 2019) SOURCE AMOUNT Tax Levy $1,089,349 Assessments $437,166 Municipal State Aid $1,000,000 Utility Fund - Water $59,813 Utility Fund - Storm Sewer $84,336 Dakota County $345,585 Total Funding, Phase 1 $3,016,249 PROJECT FUNDING (PHASE 2, 2020) SOURCE AMOUNT Tax Levy $847,337 Assessments $314,213 Municipal State Aid $400,000 Utility Fund - Water $0 Utility Fund - Storm Sewer $120,811 Total Funding, Phase 2 $1,682,361 The estimated assessment per property based on the city policy would result in individual assessments of: • $11,462 per unit for Marie Avenue • $6,830 per unit for the Wesley Lane Neighborhood Staff proposes that assessments be capped at $5,500 per unit for both the Wesley Lane Neighborhood and Marie Avenue residents. The attached Resolution 2019-10, further breaks down the project funding into portions of the project that are being assessed and portions of the project that are funded through city utility funds, Municipal State Aid (MSA), and funds from other agencies. RECOMMENDATION Staff recommends that the Council conduct the Public Hearing. If it wishes to proceed, it should order the improvements, and authorize staff to prepare the plans and specifications for the Marie Avenue and Wesley Lane Neighborhood Improvements. ACTION REQUIRED Conduct the public hearing, and then if City Council wishes to implement the staff recommendation, pass a motion adopting A RESOLUTION ORDERING OF IMPROVEMENT PROJECT AND PREPARATION OF PLANS AND SPECIFICATIONS FOR THE MARIE AVENUE AND WESLEY LANE NEIGHBORHOOD IMPROVEMENTS PROJECT #201803. This action requires a super majority vote, meaning a minimum of four votes. page 43 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2019-10 A RESOLUTION ORDERING OF IMPROVEMENT PROJECT AND PREPARATION OF PLANS AND SPECIFICATIONS FOR THE MARIE AVENUE AND WESLEY LANE NEIGHBORHOOD IMPROVEMENTS (PROJECT #201803) WHEREAS, on December 18, 2018, the Mendota Heights City Council authorized the holding of a public hearing (the “Hearing”) under Minnesota Statutes, Chapter 429, as amended (the “Act”), to discuss and consider various street rehabilitation projects, storm water infrastructure improvement and replacement, aggregate base, concrete curb and gutter improvements, bituminous surfacing, and appurtenant work (collectively, the “Improvements”), in and along portions of the following streets: Mager Court, Marie Avenue (Lexington Avenue to Dodd Road), South Lane (Linden Street to the cul-de-sac), Spring Creek Circle, Wesley Court, and Wesley Lane (collectively, the “Assessment Area”); and WHEREAS, also on December 18, 2018, the Council received a feasibility report on the Improvements from the Public Works Director (the “Feasibility Report”), which report explored the feasibility and estimated costs to provide the Improvements under the Act; and WHEREAS, the estimated costs of the Improvements, as detailed in the Feasibility Report, is $2,789,129, and will be financed from a combination of available City Utility Funds, Special Assessments, and general obligation improvement bonds; and WHEREAS, the City is additionally proposing to (i) repair and improve a land bridge; (ii) replace a pedestrian underpass; (iii) construct a new pedestrian trail; (iv) remove sediments from certain stormwater ponds; (v) replace certain water mains; and (vi) construct street improvements to be categorized under the State of Minnesota’s municipal state-aid street system. These improvements are not proposed to be assessed to benefiting properties, nor will they be financed through general obligation improvement bonds, although they may be financed through general obligation utility revenue bonds or other applicable financing mechanisms, so such improvements are not subject to the Hearing; and WHEREAS, the Council has held a neighborhood informational meeting in January, to give each neighborhood in the Assessment Area a summary of the Improvements, and the necessity of such Improvements to the general overall health of the City; and WHEREAS, ten days’ mailed notice and two weeks’ published notice of the Hearing was given, as required by the Act, and the Hearing was held on the date hereof, at which time all persons desiring to be heard were given an opportunity to be heard thereon; and WHEREAS, a reasonable estimate of the total amount to be assessed, and a description of the methodology used to calculate individual assessments for affected parcels within the Assessment Area, has been made available for the Hearing. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Mendota Heights, Minnesota, as follows: page 44 1. The Improvements are necessary, cost-effective and feasible as detailed in the Feasibility Report. Specifically, the Improvements are necessary to update the City’s street infrastructure system, as many streets were originally constructed more than 40 years ago, and contain pavement that has been continually patched, overlaid, seal coated, and slurry sealed, but now is in need of rehabilitation. The repair of associated aging storm water infrastructure concurrently with the street reconstruction is additionally recommended for project efficiency. Finally, the Improvements are feasible from an engineering standpoint. 2. The Improvements are hereby ordered. The Council shall let the contract for all or part of the Improvements, as authorized by Section 429.041, Subdivision 1 of the Act, no later than December 31, 2020. 3. The portion of the Improvements related to associated storm water infrastructure are instituted under the Act, and this portion of the Improvements can be more economically completed if consolidated and joined as one project with the Improvements, as allowed pursuant to Minnesota Statutes, Section 435.56, as amended. Therefore, all subsequent proceedings under the Act related to the Improvements shall be conducted in all respects as if the various separate proceedings had originally been instituted as one proceeding. The actions of City staff and consultants to consolidate the storm water infrastructure portion of the Improvements with the remainder of the Improvements are approved and ratified. 4. The Improvements have no relationship to the City’s Comprehensive Plan. 5. TKDA, the City’s engineering firm, is hereby designated as the engineer for the Improvements. The Public Works Director shall prepare plans and specifications for the making of such Improvements, which plans and specifications shall be placed on file at the City upon completion. 6. The Council declares its official intent to reimburse itself for all or a portion of the costs of the Improvements from the proceeds of tax-exempt bonds. The City has a reasonable expectation that it will issue one or more series of tax-exempt bonds in the estimated maximum principal amount of $2,789,129 to finance the Improvements, and the City will make reimbursement allocations with respect to such original expenditures for the Improvements from the proceeds of the Bonds. Adopted by the City Council of the City of Mendota Heights this fifteenth day of January, 2019. CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor ATTEST _________________________ Lorri Smith, City Clerk page 45 Project AreasMarie AvenueNpage 46 Project AreasWesley Lane NeighborhoodNpage 47 Phase 1 Project ScopePhase 1: 2019 constructionMarie Avenue street improvements and trail rehabilitationPedestrian underpass and guard rail improvementsRetaining wall reconstruction and bridge repairWatermain replacementPond cleanoutWesley Lane Neighborhood Street Improvementspage 48 Phase 2 Project ScopePhase 1: 2019 constructionMarie Avenue street improvements and trail rehabilitationRetaining wall reconstructionLexington trail realignmentPond cleanoutpage 49 To: Mayor and City Council From: Mark McNeill, City Administrator Cheryl Jacobson, Assistant City Administrator Subject: Comcast Cable Franchise Date: January 15, 2019 Comment: Introduction: The City Council is asked to take action regarding whether or not to accept a “formal” franchise renewal proposal from the City’s cable provider, Comcast, Inc. Background: For many years, the City of Mendota Heights has been a member of the 7 city Cable Commission formed by a Joint Powers Agreement known as the Northern Dakota County Cable Communications Commission - NDC4. In addition to local origination broadcasting, NDC4 oversees the administration of the cable television franchise and related services provided by Comcast Inc. Attached is an explanatory memo from Jodie Miller, Executive Director of NDC4, and a resolution drafted by Brian Grogan, who serves as the attorney advising NDC4, of which the City is a member. In it, it states that the Comcast franchise initially expired three years ago, and while negotiations have been ongoing since that time, the effort to reach a negotiated informal renewal of the Franchise has been unsuccessful. There remain many unresolved issues, both financial and operational. On December 12, 2018, the 14 member NDC4 Commission (with two representatives from Mendota Heights) chose to adopt NDC4 Resolution 12-12-2018 (attached). This NDC4 Resolution made a preliminary assessment that the formal proposal of Comcast for a franchise renewal was unsatisfactory, and should therefore be denied. In turn, each of the 7 cities are now being asked to separately consider Comcast’s formal proposal for franchise renewal. Recommendation: The NDC4 Commission voted to make the preliminary finding that the formal proposal of Comcast for a franchise renewal be denied. To be consistent with the actions of the Commission which represents Mendota Heights in issues dealing with the franchise, I recommended that the City Council vote to adopt page 50 a City resolution making the preliminary finding that the Comcast formal proposal to renew the cable franchise be denied. If the NDC4 member cities vote to follow the recommendation of the NDC4 Commission, the next step in the process provides for the dispute to be heard by an administrative law judge. Note that Mendota Heights resident Mickey Kieffer, and City Council member Joel Paper represent the City on the NDC4 Board. Mr. Kieffer, Ms. Miller, and Mr. Grogan will be in attendance at the January 15th City Council meeting. Comcast is also expected to be in attendance to respond. Action Required If the Council concurs with the recommendation of the NDC4 Resolution 12-12-2018, it should adopt the following resolution: RESOLUTION NO. 2019-09 PRELIMINARY ASSESSMENT THAT THE COMCAST FORMAL PROPOSAL FOR FRANCHISE RENEWAL BE DENIED page 51 page 52 page 53 page 54 page 55 page 56 page 57 page 58 page 59 page 60 page 61 page 62 page 63 page 64 page 65 page 66 page 67 page 68 page 69 page 70 page 71 page 72 page 73 CITY OF MENDOTA HEIGHTS, MINNESOTA RESOLUTION NO. 2019-09 PRELIMINARY ASSESSMENT THAT THE COMCAST FORMAL PROPOSAL FOR FRANCHISE RENEWAL BE DENIED WHEREAS, on or about April 1, 2000, the City of Mendota Heights, Minnesota, (“City”) granted a Cable Television Franchise Ordinance (“Franchise”), which is currently held by Comcast of St. Paul, Inc. (“Comcast”), to provide cable service in the City; and WHEREAS, the Northern Dakota County Cable Communications Commission (“Commission”) is a joint powers commission organized pursuant to Minnesota Statutes §238.08 and §471.59, as amended, and includes the following seven (7) municipalities: Inver Grove Heights, Lilydale, Mendota, Mendota Heights, South St. Paul, Sunfish Lake, and West St. Paul, Minnesota (the “Member Cities”); and WHEREAS, the Commission was formed in 1982 and presently obtains its authority from the Member Cities under an Amended Joint Powers Cooperative Agreement (“JPA”); and WHEREAS, the Commission has the authority under the JPA to administer the Franchises on behalf of the City, including negotiating and recommending renewal thereof; and WHEREAS, Section 626(a)(1) of the Cable Communications Policy Act of 1984, as amended (the “Cable Act”), 47 U.S.C. §546(a)(1), provides that if a written renewal request is submitted by a cable operator during the six (6) month period which begins with the thirty-sixth (36th) month before franchise expiration and ends with the thirtieth (30) month prior to franchise expiration, a franchising authority shall, within six (6) months of the request, commence formal proceedings to identify the future cable-related community needs and interests and to review the performance of the cable operator under its franchise during the then current franchise term; and WHEREAS, by letter dated July 27, 2012, from Comcast to the City, Comcast invoked the formal renewal procedures set forth in Section 626 of the Cable Act, 47 U.S.C. §546; and WHEREAS, the JPA empowers the Commission to conduct the Section 626 formal franchise renewal process on behalf of the City and to take such other steps and actions as are needed or required to carry out the formal franchise renewal process; and WHEREAS, by letter dated August 7, 2012, the Commission, on behalf of the City, informed Comcast that the Commission had commenced proceedings to identify the future cable- related community needs and interests and to review the performance of Comcast under the Franchises; and WHEREAS, in 2013 and 2014 the Commission conducted a detailed and comprehensive needs assessment process for the purpose of (A) identifying the future cable-related community needs and interests of the Commission and its Member Cities, and (B) reviewing the page 74 performance of Comcast under the Franchise, all as required by Section 626(a) of the Cable Act, 47 U.S.C. §546(a); and WHEREAS, the Commission’s needs ascertainment and past performance review produced the following reports: The Buske Group’s “Community Needs Ascertainment - Northern Dakota County Cable Communications Commission (Inver Grove Heights, Lilydale, Mendota, Mendota Heights, South St. Paul, Sunfish Lake, and West St. Paul, Minnesota)”; CBG Communications Inc.’s, “Report on the Institutional Network Technical Review and Needs Assessment for the Northern Dakota County Cable Communications Commission;” and WHEREAS, since 2014 the Commission has been engaged with Comcast in informal franchise renewal negotiations contemplated by 47 USC § 546(h), in hopes of arriving at a renewed franchise; and WHEREAS, in June of 2014 Comcast submitted FCC Form 394 requesting authority to transfer ownership of the cable system serving the Commission and the City; however, the transfer request was terminated by Comcast in April 2015; and WHEREAS, in February 2015 the Commission and Member Cities received a request for a competitive cable franchise from Quest Broadband Services, Inc. dba CenturyLink (“CenturyLink”); and WHEREAS, the Commission processed CenturyLink’s request for a franchise and in March 2016 the City granted a franchise to CenturyLink; and WHEREAS, following the grant of the CenturyLink franchise the Commission and Comcast undertook further informal renewal discussions but were not able to reach agreement on a renewed franchise; and WHEREAS, on February 7, 2018, the Commission directed Commission staff to finalize preparation of formal renewal documents, as specified in Section 626(a)-(g) of the Cable Act, 47 U.S.C. §546(a)-(g); and WHEREAS, based on the Commission’s needs ascertainment and past performance review, best industry practices, national trends in franchising and technology, and its own experience, Commission staff prepared a Formal Needs Assessment Report (“Needs Report”), which included a Request for Formal Renewal Proposal (“RFRP”) and a Model Cable Television Franchise Ordinance (“Model Ordinance”) that collectively address the Member Cities’ present and future cable-related needs and interests, establish requirements for facilities, equipment and the channel capacity on Comcast’s cable system, and include model provisions for satisfying the identified cable-related needs and interests; and WHEREAS, on April 4, 2018, the Commission approved the Needs Report, RFRP and Model Ordinance; and WHEREAS, the Commission established July 16, 2018, as a deadline for Comcast’s response to the Needs Report, RFRP and Model Ordinance; and page 75 WHEREAS, even after the issuance of the Needs Report, RFRP and Model Ordinance, the Commission and Comcast engaged in informal renewal negotiations pursuant to 47 U.S.C. §546(h) but were unable to arrive at mutually acceptable terms, although informal discussions are ongoing; and WHEREAS, on June 28, 2018, Comcast requested a thirty (30) day extension of the deadline for Comcast to provide its formal proposal; and WHEREAS, on June 29, 2018, the Commission granted Comcast’s extension request; and WHEREAS, the new deadline for Comcast’s response to the formal renewal request was set at August 15, 2018; and WHEREAS, on or about August 15, 2018, Comcast submitted to the Commission its Formal Proposal in response to the Needs Report, RFRP and Model Ordinance (“Formal Proposal”); and WHEREAS, on August 26, 2018, the Commission published a notice informing the public that Comcast’s Formal Proposal had been received and was placed on file for public inspection in the Commission’s office, as well as online, and that written public comments may be submitted to the Commission; and WHEREAS, by letter dated November 28, 2018, the Commission and Comcast agreed that the Commission has the authority to issue a recommendation to the Member Cities regarding preliminary approval or denial of Comcast’s Formal Proposal (“Letter of Understanding”); and WHEREAS, on December 12, 2018, the Commission adopted Resolution No. 12-12- 2018, which issued a Recommendation Regarding Preliminary Assessment that the Comcast Formal Proposal for Franchise Renewal be Denied; and WHEREAS, under the Letter of Understanding, prior to March 15, 2019, each Member City shall consider and act upon the Commission recommendation at a regular or special City Council meeting; and WHEREAS, pursuant to the Letter of Understanding, the Commission and Comcast further agree that if one (1) or more of the Member Cities issues a preliminary denial, the Commission shall administer any requested administrative proceeding as a group on behalf of one (1) or more of the Member Cities in accordance with 47 U.S.C. § 546(c); and WHEREAS, the City has carefully reviewed Comcast’s Formal Proposal and agrees with the findings and conclusions set forth in Commission Resolution No. 12-12-2018: and WHEREAS, the City agrees with the Commission that there are a number of areas where the Formal Proposal fails to meet the future cable-related community needs and interests taking into account the cost of meeting such needs and interests, each of which is set forth in Exhibit A to this resolution; and page 76 WHEREAS, should Comcast request the commencement of an administrative hearing pursuant to 47 U.S.C. §546(c), the City agrees that the Commission should follow the Commission’s prescribed Rules for the Conduct of an Administrative Hearing, attached hereto as Exhibit B, which rules comply with all procedural obligations set forth in 47 U.S.C. §546(c); and WHEREAS, the City has carefully considered all public comment, including that contained within the Needs Report. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF MENDOTA HEIGHTS, MINNESOTA, THAT: 1. Each of the above recitals is hereby incorporated as a finding of fact by the City. 2. Exhibits A and B are hereby incorporated by reference as if fully set forth in the body of this Resolution. 3. The City hereby issues preliminary assessment that the Comcast Formal Proposal should be denied and the Comcast Franchise should not be renewed. 4. The City preliminarily finds that Comcast’s Formal Proposal fails to meet the City’s and the Commission’s future cable-related community needs and interests taking into account the cost of meeting such needs and interests. 5. The basis for the Commission’s preliminary assessment is set forth in Exhibit A. 6. The City hereby confirms the Commission’s recommendation that at any administrative hearing requested by Comcast, the Rules for the Conduct of an Administrative Hearing, attached hereto as Exhibit B, will ensure that Comcast is afforded a fair opportunity for full participation including the right to introduce evidence, to require the production of evidence, and to question witnesses. 7. The City finds that its actions are appropriate and reasonable in light of the mandates contained in federal law including 47 U.S.C. §546. PASSED AND ADOPTED this day of , 2019. CITY COUNCIL CITY OF MENDOTA HEIGHTS ______________________________ ATTEST: Neil Garlock, Mayor _____________________________ Lorri Smith, City Clerk page 77 EXHIBIT A Analysis of Comcast’s Formal Renewal Proposal to the Northern Dakota County Cable Communications Commission Lack of System Specific Financial Data Comcast chose not to follow the directions of the RFRP, which required that applicants provide financial information pertaining specifically to the Commission franchise area serving the Member Cities. Instead Comcast referred to Comcast Corporations’ publicly available 10-K filings. In addition, Comcast submitted a one page income statement as well as a one-half page balance sheet (both labeled Trade Secret) prepared with data for the entire Comcast Twin Cities Region (Minnesota and Wisconsin). Comcast declined to provide any financial information specific to the Commission franchise area or for each Member City’s franchise area, stating that such information was “confidential and proprietary” and “unnecessary.” Under 47 U.S.C. § 546(c) the Commission and Member Cities are required to consider whether Comcast’s Formal Proposal is “reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests.” Without financial information from Comcast that is specific to the cable system in the Commission franchise area, the Commission and Member Cities have limited ability to assess one of Comcast’s primary objections to the Needs Report and Model Ordinance – that the cost associated with meeting the identified needs and interests render large portions of the Needs Report and Model Ordinance unreasonable. Comcast’s refusal to submit system specific financial data for the Commission franchise area is in direct violation of the requirements of the RFRP and eliminates the Commission’s and Member Cities’ ability to weigh the cost implications of the Needs Report and Model Ordinance against the Formal Proposal. Comcast appears to argue instead that the only consideration to be made by the Commission and Member Cities is whether the costs associated with the Needs Report will be “popular” among subscribers – a standard that Comcast appears to have created despite the requirements of 47 U.S.C. § 546. Comcast ignores the plain language of the Cable Act and the legislative history, which provide that “in assessing the costs [under § 546(c)(1)(D)], the cable operator’s ability to earn a fair rate of return on its investment and the impact of such costs on subscriber rates are important considerations.” H.R. Rep. No. 98-934, at 74, reprinted in 1984 U.S.C.C.A.N. at 4711. When a formal proposal does not satisfy an identified need, it is the franchising authority’s obligation to decide whether the operator has established that the cost of meeting that need so outweighs the value of the need that the formal proposal is nonetheless reasonable. Without any specific financial information provided by Comcast to allow the Commission and Member Cities to determine if Comcast can earn a fair rate of return, the Commission and Member Cities are left with only Comcast’s opinion that pass-through costs associated with meeting the Needs Report and Model Ordinance would not be well received by subscribers. page 78 The House Report regarding 47 U.S.C. § 546 states: It is the Committee’s intent that the franchise process take place at the local level where city officials have the best understanding of local communications needs and can require cable operators to tailor the cable system to meet those needs. H.R. Rep. No. 98-934, at 24, reprinted in 1984 U.S.C.C.A.N. at 4661. As the House Report makes clear, the Commission and Member Cities are in the best position to understand the needs of the community, and those needs and interests have been set forth in writing by the Commission when it adopted the Needs Report and Model Ordinance. Comcast appears to argue that the Commission and Member Cities should not focus on whether the Formal Proposal meets the Needs Report considering the cost implications to Comcast, but rather the Commission and Member Cities should consider whether the Needs Report and Model Ordinance may result in a rate increase to subscribers. Comcast relies upon its Comcast Survey to create its own alternative needs ascertainment and argues that if the Needs Report results in any rate increase, no matter what the amount, subscribers would be upset and therefore the costs associated with the Needs Report must be unreasonable. Nowhere does Comcast present any evidence that Comcast would be unable to continue in business or earn a fair rate of return if cable rates increase to meet the Needs Report and the requirements of the Model Ordinance. Comcast offers no evidence that subscribers would disconnect from the cable system if the Needs Report were met. In fact, over the past 30 years that Comcast has held a franchise in the Commission franchise area, Comcast has routinely increased rates virtually every year to recoup programming cost increases, capital expenditures, employee expenses and other expenses. These rate increases may have been unpopular with subscribers, yet Comcast still implemented the increases and presumably remains a profitable company in the franchise area. Moreover, Comcast has recently entered into cable franchise agreements in the Twin Cities metropolitan area that contain similar or higher fee assessments and more burdensome franchise obligations 1 than those set forth in the Model Ordinance, yet Comcast remains profitable and thriving in those franchise areas based upon the financial information relied upon by Comcast in its Formal Proposal. Comcast’s Alternative Needs Assessment Despite the fact that 47 U.S.C. § 546(a) requires that the Commission and Member Cities, not Comcast, identify the future cable-related needs and interests, Comcast chose to create its own ascertainment of future needs by submitting as part of its Formal Proposal an alternative Ascertainment Issues Survey dated September 2015 (“Comcast Survey”). Comcast presented its alternative needs and interests throughout the Formal Proposal. Because 47 U.S.C. § 546(a) requires that the Commission and Member Cities identify the future needs and interests, Comcast’s alternative ascertainment is of no value when determining if the Comcast Franchise meets the identified needs and interests contained in the Needs Report and 1 See one recent example - North Suburban Communications Commission (“NSCC”) Cable Television Franchise Ordinance with Comcast, which became effective in the fall of 2017 (depending upon the date of adoption of the NSCC member cities). page 79 Model Ordinance. To do otherwise would be to create a new ascertainment, one created by Comcast, which would then require a new opportunity to submit a formal proposal. The process would be forever circular if the Needs Report and Model Ordinance created by the Commission and Member Cities are not maintained in final form, exactly as those documents were approved by the Commission, so that Comcast’s Formal Proposal can then be weighed against the needs assessment as contemplated by 47 U.S.C. § 546. By rejecting large portions of the Needs Report and replacing its findings with Comcast’s alternative ascertainment, Comcast has ignored the express requirements of 47 U.S.C. § 546(b). The responsibility to assess future cable-related needs and interests in the franchise area rests with the Commission and Member Cities. Comcast is entitled to demonstrate in its Formal Proposal that Comcast’s cost of meeting those identified needs and interests renders such needs and interests unreasonable. However, Comcast is not entitled to exercise legislative authority and determine on behalf of the Commission and Member Cities what those needs and interests may be. Nor is Comcast entitled to submit a formal proposal based on an ascertainment that has not been adopted by the franchising authority – the Commission and Member Cities. Comcast’s approach in this renewal turns the federally mandated formal renewal process on its head and is in direct violation of the statutory requirements contained therein. Comcast refusal to respond to Model Ordinance Within the Formal Proposal, Comcast completely ignored the Model Ordinance and instead drafted and submitted an entirely different model franchise document, which Comcast included as Exhibit 1 of the Formal Proposal - City of [X], Minnesota Ordinance Granting a Cable Television Franchise to Comcast of St. Paul, Inc. (“Comcast Model Franchise”). Comcast argues that the Comcast Model Franchise meets the Comcast Survey, with little regard for the finding of the Needs Report and the requirements of the Model Ordinance as prescribed by 47 U.S.C. § 546(a). The Commission’s Model Ordinance is substantially based on the existing franchise currently held by Comcast, as well as the terms and requirements of the April 2016 Cable Television Franchise Ordinance granted by the Commission and the Member Cities to CenturyLink. Under Minn. Stat. § 238.08 the Commission and Member Cities are required to maintain a level playing field on several key franchise issues, including the payment of franchise fees, public, education and government access requirements and the franchise area served. By ignoring the Model Ordinance and instead proposing the Comcast Model Franchise, Comcast places the Commission and Member Cities in the position of being unable to comply with Minn. Stat. § 238.08. Comcast’s Formal Proposal is unacceptable Due to the volume of unacceptable provisions in the Formal Proposal, this Exhibit A will assess the differences between the Comcast Model Franchise on the one hand and the Needs Report and Model Ordinance on the other, to organize and present a list of reasons why Comcast’s Formal Proposal is unacceptable and should be preliminarily denied. The below list outlines those portions of the Formal Proposal that are unacceptable as they do not meet the future cable-related community needs and interests set forth in the Needs Report and Model Ordinance, taking into account the costs associated with meeting those needs and interests. Since Comcast has page 80 substantially ignored the Model Ordinance and provided an entirely different Comcast Model Franchise, it is not possible to provide a section by section comparison as the documents are structured differently. The below section references are to the Model Ordinance prepared by the Commission and Member Cities. Section 1.2 – Definitions. “Gross Revenues” – Within the Comcast Model Franchise, Comcast has proposed material changes to the definition of “Gross Revenues” upon which Comcast’s franchise fee payments are based. In fact, Comcast presents an entirely different definition from that contained in the Model Ordinance. The Needs Report requires that Comcast remit franchise fee payments on any and all revenue derived from the provision of cable services in the franchise area. Comcast’s attempt to limit the gross amount on which the calculation is based is unacceptable. Comcast proposes that “gross revenues” be calculated in accordance with Generally Accepted Accounting Principles (“GAAP”). GAAP are standards for maintaining a company’s books and records. GAAP does not direct how to calculate cable service revenue, particularly gross revenues specifically defined in a contract (franchise). Comcast’s Formal Proposal could allow items that should be counted as gross revenues to go uncounted and could further allow for deductions for bundled services (cable, telephone and broadband) in excess of the definition included in the Model Ordinance. Nothing in the Cable Act references GAAP, and it is inappropriate to use these principles to allow for the potential unilateral determination by Comcast of what is (or is not) to be counted as gross revenues. For the reasons set forth above, Comcast’s proposed definition of Gross Revenues is unacceptable. “Right-of-Way” – Comcast does not define the term “Right-of-Way,” rather Comcast uses the term “Street” in its Comcast Model Franchise. The definition of Right-of-Way is contained in the existing Franchise and is carefully drafted to mirror definitions used by a number of the Member Cities in local city codes. Moreover, the Comcast definition for Street included in the Comcast Model Franchise contains a grant of authority to “entitle the Grantee to the use” of the Streets to install poles, wires and related facilities with no clarification how such a grant of authority would be administered by each Member City. For these reasons Comcast’s proposal to use an overly broad definition for the term “Street” is not acceptable. “Subscriber” – Comcast has made material changes to the definition of “Subscriber,” which could have the impact of significantly altering the manner in which PEG fees are collected. By deleting the phrase, “[i]n the case of multiple office buildings or multiple dwelling units, the “Subscriber” means each lessee, tenant or occupant, not the building owner,” Comcast is, in part, seeking to reduce the PEG fees to be paid and disproportionately assess PEG fees over its subscriber base. This is particularly true since Comcast is proposing a monthly PEG fee of $1.39 per subscriber. By way of example, if such a PEG fee were to be implemented, each subscriber would remit such a fee as part of its monthly payment. But a 100 unit apartment building, with 80 cable Subscribers, may only have to remit one $1.39 PEG fee (instead of 80 x $1.39) because, under the Comcast Model Franchise, the landlord would be the only person (Subscriber) with a contractual relationship with Comcast, not each apartment lessee. Taking into consideration the page 81 number of multiple dwelling units (“MDU”) in the Commission franchise area and the ten-year term contemplated by the Model Ordinance, the revenue that may be lost by the Commission and Member Cities due to this change would be significant. In addition, for other purposes under the Model Ordinance, those living in MDUs may not be considered a “Subscriber,” meaning they would have limited ability to exercise rights under customer service standards or related provisions of the Model Ordinance. Only the landlord would be considered the “Subscriber” under the Comcast Model Franchise. For these reasons, Comcast’s proposal to limit the definition of the term “Subscriber” is unacceptable. Section 2 – Grant of Franchise. Section 2.2 – Grant of Nonexclusive Authority. Comcast added Section 17.16 in its Comcast Model Franchise titled “Competitive Equity.” Such a provision is not included in the Model Ordinance as this issue has long been addressed under Minn. Stat. § 238.08. Comcast’s one- sided competitive equity mandate serves as a type of “most favored nations” provision that would allow Comcast to unilaterally walk away from franchise obligations if Comcast determines that another franchise has been granted with different material terms. In the alternative, Comcast seeks the option to abandon the cable franchise and opt into a competitor’s franchise issued by a Member City. Certainly every business would prefer to enter a contract where it is guaranteed the best possible terms and rates for a ten-year period and can unilaterally opt into a competitor’s contract whenever it chooses. Comcast desires a franchise which grants to Comcast the authority to run cable and facilities down every street, sidewalk, road and alley. Comcast further desires the security of a long term franchise (ten (10) years) but wants the ability to abandon the franchise with no consequences. Comcast offers the Member Cities no such option for unilateral termination if Comcast enters into a more favorable franchise elsewhere in the country. Unless such a provision works to the benefit of both parties, there is no rationale in contract law, and no city would agree to such a one sided provision that can only work to the city’s disadvantage. Neither state nor federal law contains any similar competitive equity provisions other than the previously referenced Minn. Stat. 238.08, which is significantly limited in scope. The Model Ordinance presented by the Commission and Member Cities includes the Minn. Stat. 238.08 mandate. Comcast’s competitive equity proposal seeks to provide Comcast with the maximum flexibility while conversely tying the Commission’s and Member Cities’ hands in negotiations with future competitive cable operators seeking franchises. For these reasons Comcast’s competitive equity proposal is unacceptable. Section 2.6 – Compliance with Applicable Laws and City Code. Comcast has proposed to delete entire sections of the Model Ordinance that would provide the Member Cities the option to amend their respective City Codes and have such code provisions govern over the terms of a franchise granted to Comcast. For this reason Comcast’s proposal is unacceptable. Section 2.8 – Territorial Area Involved. The Model Ordinance requires that in the event of annexation Comcast must serve the annexed territory so long as certain density criteria are met. page 82 Comcast’s Model Franchise instead includes a provision that would allow Comcast to refuse to serve an annexed area if a competing cable operator is already providing cable service in that area. Such a provision would mean that rather than receive the benefits of competition in the annexed area, those homes in the annexed area would risk being served by one cable operator and lose the benefits of competition. For this reason Comcast’s proposal is unacceptable. Section 4.10 – Home Wiring. The Model Ordinance contains a requirement that serves to protect residential customers and ensure consumer choice for all providers of cable service in the franchise area. Specifically the provision requires Comcast to provide its subscribers with a notification upon commencement of service, and annually thereafter, advising them of their rights relating to home wiring as expressed by the FCC. The Comcast Model Franchise is completely silent on this provision and offers no alternative for consideration. For this reason Comcast’s proposal is unacceptable. Section 5.3 (e) and (f) – reports. These provisions of the Model Ordinance require Comcast to provide: 1) a quarterly customer service compliance report demonstrating Comcast’s compliance with the customer service requirements contained in the franchise; and 2) a monthly subscriber data report consistent with the information Comcast has historically provided over the prior franchise term. Comcast’s proposal requires that the Commission and Member Cities “request” reports after a showing of “demonstrated need.” Not receiving these reports would prevent the Commission from undertaking the monthly due diligence it has historically performed on behalf of the Member Cities and would significantly limit the ability of the Commission to monitor Comcast’s compliance with customer service and the financial terms of the franchise. For this reason Comcast’s proposal is unacceptable. Section 6.2 – Subscriber Network Drops to Designated Buildings. The differences between the Model Ordinance and the Comcast Model Franchise are significant in this section. The differences relate to the type of service to be provided, the number of receivers (terminal equipment) to be provided, the number of locations to be served and many other details. For these reasons the Comcast proposal is unacceptable. Section 7 – Institutional Network. As the Needs Report makes clear, the Institutional Network is an important issue to the Commission and Member Cities. The background regarding how the Institutional Network was financed, constructed, and utilized over the past 15+ year franchise term is set forth in the Needs Report. Section 7 of the Model Ordinance parallels much of the language contained in the existing Franchise between Comcast and Member Cities regarding the Institutional Network. The Commission updated the language to reflect that the Institutional Network is no longer a new construction project, but rather ongoing maintenance of an already existing network, one that was paid for by the institutional users of the network, not Comcast. Rather than provide any response to the Institutional Network or any alternative for consideration, Comcast’s Formal Proposal and the Comcast Model Franchise are completely silent regarding the Institutional Network. In fact, there is literally no reference to the term “Institutional Network,” nor any Institutional Network services, found anywhere in Comcast’s Formal Proposal or Comcast’s Model Franchise. As a result there is no ability for the Commission to provide a detailed analysis of any proposed differences between the Needs Report, Model Ordinance and Comcast’s Formal Proposal. Comcast’s failure to provide any proposal regarding an Institutional Network is unacceptable. page 83 Section 9.1 – Performance Bond. The Comcast Formal Proposal includes a $100,000 joint performance bond, which is consistent with the Needs Report and the Model Ordinance. However, the Comcast Model Franchise fails to include any procedure under which the Commission or Member Cities can draw on the performance bond. A detailed procedure was included in the Comcast Model Franchise for the Commission or Member Cities to draw on the letter of credit, but no similar process was provided for the performance bond. Consistent with the existing franchise between Comcast and the Member Cities, as well as the requirements set forth in the Model Ordinance, an agreed upon process must be included within the franchise to provide clarification that either the Commission or Member Cities can draw upon the performance bond and the steps which must be undertaken to accomplish such a draw. For these reasons this proposal by Comcast is unacceptable. Section 9.2(b) – Liquidated Damages. The Needs Report and Model Ordinance have maintained the level of liquidated damages consistent with the amounts contained in the existing Franchise between Comcast and the Member Cities. The amounts of liquidated damages in the Model Ordinance also parallel the liquidated damage levels contained in the CenturyLink franchise. Comcast’s Formal Proposal and Model Franchise substantially reduce the amount of each category of liquidated damages. Moreover, Comcast proposes to cap the liquidated damages at 120 days, a provision which is not included in the Model Ordinance nor has ever been included in past franchises between the parties. For these reasons this proposal by Comcast is unacceptable. Exhibit A – PEG Access. Comcast’s Formal Proposal and Comcast’s Model Franchise fail in many respects to meet the cable-related needs and interests of the Commission and Member Cities regarding public, education and government (“PEG”) access. Below is a list of unacceptable deficiencies in Comcast’s Formal Proposal and Comcast’s Model Franchise, as compared to the identified needs and interests contained in the Needs Report and Model Ordinance. 1. Number of PEG channels. The Commission and Member Cities require seven (7) channels exclusively for PEG use. Comcast proposes to make available three (3) PEG access channels. Comcast offers no evidence of cost, impact on Comcast’s business model in the Commission franchise area, or ability to earn a fair rate of return in the Commission franchise area. Comcast simply offers that the Commission and member Cities do not need the current number of PEG channels based on Comcast’s assessment of the needs, not based on the Needs Report. 2. PEG channel technical quality. Comcast fails to provide contractual commitments to maintain adequate PEG technical quality to meet the standards set forth in the Needs Report and Model Ordinance. Comcast proposes instead to meet a vague technical quality standard that provides no point of comparison upon which to measure whether the PEG technical quality is consistent with those of other commercial programmers, including local television broadcast stations carried on the cable system. 3. PEG channels in HD. Within the Needs Report and the Model Ordinance the Commission and Member Cities require that a minimum of three (3) PEG channels be provided in high definition (“HD”) technology while also maintaining standard definition page 84 (“SD”) channels. Through this technology transition, the Commission and Member Cities would reduce one SD PEG channel and would, at the end of the technology transition, receive a total of three (3) SD/HD simulcast channels, and three (3) additional SD channels available for PEG programming. Comcast proposes in its Comcast Model Franchise to make available two (2) SD/HD simulcast channels and one (1) additional SD channel for PEG programming. 4. PEG HD end user equipment. Comcast proposes a requirement that any costs of end user equipment associated with the delivery of SD PEG channels in HD format would be borne by the Commission and Member Cities and must be paid for out of PEG funds. This is not a provision contained within the Needs Report or the Model Ordinance. 5. PEG channel locations. The Model Ordinance requires that if the PEG channels are relocated to a different location by Comcast, the PEG channels will be located in reasonable proximity to other broadcast channels. Comcast proposes that upon any relocation the PEG channels will be located in reasonable proximity to any other commercial video channels. The result of this proposal means that the PEG channels could be moved to an entirely different channel neighborhood, nowhere near local broadcast channels. Such a result would be inconsistent with the Needs Report and Model Ordinance. Such relocation would have a significant adverse impact on subscriber’s ability to locate and view PEG programming and is inconsistent with the Needs Report. 6. Promotion of PEG access channels. The Commission and Member Cities have a need for 30 second promotional spots inserted in unsold ad avail timeslots on the cable system consistent with Comcast’s past practices under its existing Franchise. The Comcast proposal is silent on this issue. 7. PEG financial support. The Needs Report and Model Ordinance outlined a demonstrated need for a PEG fee in the amount of three percent (3%) of Comcast’s gross revenues to support PEG programming consistent with applicable law. Comcast’s proposal provides for a monthly PEG fee of $1.39 per subscriber. The difference between these proposals is substantial. Comcast’s proposal represents less than 50% of the demonstrated need set forth in the Needs Report and Model Ordinance. Comcast does not rely upon the Needs Report prepared by the Commission and the Member Cities, but rather upon its own alternative ascertainment – the Comcast September 2015 Ascertainment Issues Survey (“Comcast Survey”). Moreover, Comcast fails to mention that within the Twin Cities market, Comcast recently agreed to renew a cable franchise with a similarly situated cable commission, and in that franchise Comcast agreed to remit a PEG fee in the amount of three percent (3%) of gross revenues.2 Comcast has not argued in its Formal Proposal that the PEG fee remitted in that other franchise area is unreasonable based upon the associated cost. Presumably Comcast still manages to maintain a viable business model and generate a return on 2 See Section 6.8 of the North Suburban Communications Commission Cable Television Franchise Ordinance. The 3% PEG fee commenced January of 2018. page 85 investment in this recently renewed franchise area despite the financial support provided for PEG. Within its Formal Proposal Comcast references its recent SEC 10-K filings to support its strong financial position and strength as a leader in the cable communications industry. Because Comcast refused to provide system specific financial data as requested in the RFRP, the Commission and Member Cities are unable to assess the financial impact of the identified needs and interests, including the 3% PEG fee, on Comcast’s cable system serving the Commission franchise area. 8. PEG technical support. The Model Ordinance outlines a number of existing technical provisions that Comcast currently provides under its existing Franchises with the Member Cities. The Commission and Member Cities have sought to maintain these commitments going forward and have outlined such technical provisions in its Needs Report and Model Ordinance. Comcast’s Formal Proposal is largely silent on these technical support obligations, or in the alternative, Comcast substantially changes the manner in which these historical commitments will be maintained going forward. 9. Video-on-demand. The Commission and Member Cities have included a commitment to continue the existing video-on-demand services made available for PEG programming by Comcast in the Commission franchise area. Comcast’s Formal Proposal and Model Franchise are completely silent on the provision of any PEG video-on-demand. 10. Interconnection. The Commission and Member Cities have outlined the need to maintain interconnection with adjacent cable systems for the purpose of sharing Twin Cities PEG programming both within the Needs Report and within the Model Ordinance. Comcast presents a far different approach to interconnection, which may or may not be maintained by Comcast over the term of the franchise and would not be an enforceable obligation by the Member Cities. For all of the reasons set forth above, the Formal Proposal presented by Comcast to support PEG access programming is unacceptable. Exhibit C – Service to Public and Private Buildings. The list of institutions included in the Model Ordinance includes continuing existing Comcast service to numerous locations that are not proposed to be served by Comcast within its Model Franchise. Comcast’s failure to provide service to the locations listed within Exhibit C of the Model Ordinance is unacceptable. Exhibit D – List of Fiber Return Locations. A detailed list of fiber return locations was included by the Commission and Member Cities to maintain the existing functionality offered by Comcast on its cable system. Comcast provides a substantially reduced list of fiber return locations. In fact the total number of fiber return locations was reduced by Comcast by over eighty percent (80%). For this reason, Comcast’s proposal is unacceptable. End of Exhibit page 86 EXHIBIT B Rules for the Conduct of an Administrative Hearing Section 1. The Commission hereby establishes procedural guidelines for purpose of the administrative hearing under the Cable Communications Policy Act of 1984 as follows: A. The Commission shall appoint an administrative law judge (“hearing officer”) to conduct the administrative hearing and issue recommended findings of fact for consideration by the Commission. Comcast and the Commission will jointly determine the process for selecting an administrative law judge, if necessary. The administrative hearing will be conducted, to the extent practicable and consistent with the requirements of the Cable Communications Policy Act of 1984, pursuant to the provisions for administrative hearings in the Minnesota Administrative Procedures Act. The specific requirements for the administrative hearing shall be as follows: B. Pre-hearing Discovery: 1. Each side is permitted limited requests for production of documents and twenty (20) interrogatories. With respect to interrogatories, the following rules apply: a. Interrogatories are to be answered by any officer or agent of either party, who shall furnish such information as is available to the party; b. Each interrogatory is to be answered separately and fully in writing under oath, unless it is objected to, in which event the objecting party shall state the reasons for the objection and answer to the extent that the interrogatory is not objectionable. All objections shall be stated with specificity and any ground for objection which is not stated in a timely manner is waived unless the party’s failure is excused by the Commission for good cause shown; and c. Interrogatories will be answered within the timeframe established by the hearing officer. 2. No depositions shall be permitted. 3. The hearing officer will rule on all discovery disputes which may arise. 4. Discovery shall close fifteen (15) days before the administrative hearing. C. Pre-hearing Disclosures: page 87 1. Each side shall disclose to the other the identity of any person who may be used at the hearing to present expert testimony prior to the hearing date. The disclosure must be accompanied by a written report prepared and signed by the expert which shall contain a complete statement of all opinions to be expressed and the basis and reasons therefore; the data or other information considered by the expert informing his or her opinions; and any exhibits to be used as a summary or in support of the opinions so rendered; the qualifications of the witness; the compensation to be paid for the study and testimony of the expert; and a listing of other cases in which the expert has testified at trial within the preceding four (4) years. 2. Exhibits and witness lists will be mutually exchanged one (1) week prior to hearing date. Witness lists will briefly state the subject of the expected testimony of each witness. D. Administrative Hearing: (1) The hearing will be conducted on a date established by the hearing officer; (2) Each side may be represented by an attorney and shall be afforded the opportunity to present relevant evidence and to call and examine witnesses and cross-examine witnesses of the other party; (3) Commission members may not be called as witnesses nor may the Commission’s or Comcast’s legal counsel be called as witnesses; (4) Witnesses will be sworn; (5) The hearing shall be transcribed by a court reporter; (6) The hearing officer will determine evidentiary objections. Strict compliance with the federal rules of evidence will not be necessary; (7) Post-hearing briefs will be permitted in lieu of closing argument. Briefs will be mutually exchanged at a date established by the hearing officer; and (8) The hearing officer will issue recommended findings of fact based upon the record of the proceeding and stating the reasons therefore, pursuant to the Cable Communications Policy Act of 1984, as amended. E. The Commission will review the recommended findings of fact from the hearing officer and will, upon request of the parties, permit oral argument before the Commission not to exceed thirty (30) minutes per party. Thereafter the Commission will issue a written decision recommending to the Member Cities to grant or deny the proposal for renewal pursuant to the Cable Communications Policy Act of 1984, as amended. page 88 Section 2. Neither the Commission’s Needs Report dated April 4, 2018, nor Comcast’s Formal Proposal dated August 15, 2018, have been amended or modified in any way since the dates submitted. Section 3. The Commission finds that its actions are appropriate and reasonable in light of the mandates contained in federal law including 47 U.S.C. § 546. End of Exhibit page 89 Mendota Heights City Council 01/15/2019 1 Cable Television Franchise Renewal Presentation to Member Cities of the Northern Dakota County Cable Communications Commission January 8, 2019 Brian T. Grogan, Esq. (612) 877-5340 www.lawmoss.com 1 Background Commission’s Member Cities each granted a cable franchise to Comcast (formerly Mediaone of St. Paul, Inc.) • April 2000 • 15 year term • Expired April 2015 Comcast requested renewal from the Member Cities • Summer of 2012 2 page 90 Mendota Heights City Council 01/15/2019 2 Needs Assessment Process Commission conducted detailed needs assessment in 2013-14 Reviewed Comcast’s performance under the 2000 franchise Identified cable-related needs and interests of • Member Cities • Commission 3 Unforeseen Delays in Renewal Process June 2014 • Comcast requested transfer of the cable system to a new entity February 2015 • CenturyLink requested a competitive cable franchise • Commission processed CenturyLink’s request April 2015 • Comcast withdrew its transfer request March 2016 • Member Cities each granted a competitive cable franchise to CenturyLink 4 page 91 Mendota Heights City Council 01/15/2019 3 Existing Franchise Extensions Member Cities have granted multiple extensions of Comcast’s existing franchise term 1. April 2015 through March 31, 2016 2. April 2016 through March 31, 2017 3. April 2017 through December 31, 2017 4. January 1, 2018 through July 31, 2018 and 5. August 1, 2018 through March 31, 2019 5 Status of “Informal” Renewal Negotiations Commission and Comcast have been unable to reach agreement on several key issues in Informal renewal •February 2018 the Commission directed staff to begin preparing “formal” renewal documents required under the Cable Act • Commission prepared a Needs Report which includes: Formal Needs Assessment Report Request for Formal Renewal Proposal Model Cable Television Franchise Ordinance •April 4, 2018 - Full Commission approved the Needs Report 6 page 92 Mendota Heights City Council 01/15/2019 4 Comcast Formal Proposal July 16, 2018 -Comcast’s response to the Needs Report due June 28, 2018 –Comcast requested an additional 30 days to provide its response June 29, 2018 –Commission granted Comcast’s request • New deadline for Comcast: August 15, 2018 August 15, 2018 -Comcast submitted its Formal Proposal to the Commission in response to the Needs Report 7 Cable Act Cable Act specifically requires franchising authority to: 1. renew the franchise, or 2. issue a preliminary assessment that the franchise should not be renewed. - 47 U.S.C. 546(c)(1) Commission had four (4) months from August 15th to accept or deny Comcast’s formal renewal proposal • Deadline for Commission action: December 15, 2018 8 page 93 Mendota Heights City Council 01/15/2019 5 Letter of Understanding Commission and Comcast reached agreement on authority of Commission under Joint Powers Agreement (JPA) regarding certain aspects of the franchise renewal process • Letter of Understanding Commission and Comcast agreed that the Commission has the authority to recommend approval or preliminary denial of Comcast’s formal proposal 9 Letter of Understanding Each Member City to consider and act upon the Commission’s recommendation at a City Council meeting • Prior to March 15, 2019 New deadline for action required by Cable Act 47 U.S.C. 546(c)(1) If one or more Member Cities deny Comcast’s Formal Proposal • Commission will administer any requested administrative proceeding jointly, in accordance with the Cable Act 10 page 94 Mendota Heights City Council 01/15/2019 6 Commission Recommendation December 12, 2018 Commission adopted Resolution No. 12-12- 2018 “Recommendation Regarding Preliminary Assessment that the Comcast Formal Proposal for Franchise Renewal be Denied” 11 Commission Recommendation Commission staff reviewed Comcast’s Formal Proposal • Determined a number of areas where it fails to meet the future cable-related community needs and interests addressed in the Commission’s Needs Report Specific reasons found in Exhibit A, Attachment 1 to Commission’s Resolution 12-12-2018 Conduct of an Administrative Hearing –if necessary • Resolution 12-12-2018 describes the rules for the Hearing Found in Exhibit B, Attachment 1 to Commission’s resolution 12 page 95 Mendota Heights City Council 01/15/2019 7 Member City Options Each Member City has two options: 1. Adopt the proposed Resolution which will serve as a preliminary assessment that the franchise should not be renewed; or 2. Make a motion to recommend approval of Comcast’s Formal Proposal and the Comcast Model Franchise. 13 Questions? Brian T. Grogan, Esq. Moss & Barnett, A Professional Association 150 South Fifth Street, Suite 1200 Minneapolis, MN 55402 (612) 877-5340 phone / (612) 877-5031 facsimile E-mail: Brian.Grogan@lawmoss.com Web site: www.lawmoss.com 14 page 96 To: Mayor and City Council From: Dave Dreelan, Fire Chief Mark McNeill, City Administrator Subject: 2019 Fire Station Addition/ Remodeling Authorization to Bid Date: January 15, 2019 Comment: Introduction: The City Council is asked to adopt a resolution approving plans and specifications, and authorize advertising for bids for the addition to, and remodeling of, the Mendota Heights Fire Station. Background: In late 2017, the City Council hired CNH Architects of Apple Valley to design a significant addition to the 1985-era fire station, and bring the current building up to code. A station committee comprised of several fire fighters has been meeting regularly to go over the details, to make certain that the end product functions well for generations to come, while staying within budget. The building addition comprises 15,100 sq. ft. and will have a training area (including a tower); berthing areas for overnight stays when required by weather conditions; offices and support areas; and a training room which will be available for public meetings on a reservation basis. The City has opted to use a Construction Management (CM) option for the construction of this project. As a result, there will be multiple bids on twenty-one different components (i.e.; excavation/grading; framing; HVAC; finishing; etc.) of the project, rather than a single composite price which can be immediately compared to others. The CM project typically results in greater efficiencies and workmanship. Schedule: If the Council approves the advertisement of bids at the January 15th Council meeting, those bids would be opened on February 20th. After an analysis by the Architect and Construction Manager, it is anticipated that the award of contracts would be made at the March 5th meeting. Groundbreaking would be when weather permits in the spring, with a preliminary target of Aril 9th. The availability of this project to be bid will be listed in the various appropriate construction trade journals, in addition to the City’s legally-required publications. page 97 Budget Impact: The amount of bonds which is able to be sold for the project is capped at $7 million; increasing that amount would require restarting the taxpayer notification process. Note that that figure must be all inclusive; in addition to the hard construction costs, it also must cover design and engineering fees, utility relocation, bond issuance costs, and the like. At the time that the Council approved the preliminary budget, the $7 million amount appeared to be adequate. However, delays from the original schedule, the discovery of problems with utilities and site layout issues dating back to the mid-1980’s, and increases in construction costs caused staying within the $7 million cap to be a challenge. The Committee and architect have now come up with plans which calls for the combined contracts to be an estimated $5.6 million hard costs for the base bid. If the total of the bid components, and the soft and other direct costs cause the total to exceed $7 million, the City Council will have to reduce the scope of the project, or find alternative sources of funding to make up the overage. Recommendation: We recommend that the City Council approve the plans and specifications, and authorize staff to advertise the 2019 Mendota Heights Fire Station Project for bid. Action Required If the Council concurs, it should, by motion, adopt the following resolution: RESOLUTION 2019-07 A RESOLUTION APPROVING FINAL PLANS AND SPECIFICATIONS, AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE 2019 MENDOTA HEIGHTS FIRE STATION EXPANSION AND REMODELING PROJECT page 98 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2019-07 A RESOLUTION APPROVING FINAL PLANS AND SPECIFICATIONS, AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE 2019 MENDOTA HEIGHTS FIRE STATION EXPANSION AND REMODELING PROJECT WHEREAS, the Mendota Heights Fire Chief and Station Building Committee have indicated that the current fire station building, constructed in 1985, is in need of being brought up to code, and that a greater amount of space is needed to safely conduct fire training and suppression operations, as well as provide space for meetings, and to house locally-stationed ambulance crews; and WHEREAS, in December, 2017, the City Council authorized the hiring of CNH Architects (architect) of Apple Valley, MN, to analyze, and then subsequently prepare plans and specifications for the improvements to the fire station building; and, WHEREAS, working in concert with the members of the Fire Station Building Committee, the architect has prepared plans and specifications for the addition to, and remodeling of the current station building; and, WHEREAS, the proposed improvements and construction plans have been deemed feasible, desirable, necessary, and cost effective, and further there has been a report on the proposed costs of said improvements and construction thereof; and WHEREAS, the Architect has prepared plans and specifications for said improvements and have presented such plans and specifications to the City Council for approval. NOW THEREFORE BE IT RESOLVED; by the Mendota Heights City Council as follows: 1. That the plans and specifications for said improvements be and they are hereby in all respects approved by the City. 2. That the Clerk, with the aid and assistance of the Architect, Construction Manager, Fire Chief, and City Administrator be and is hereby, authorized and directed to advertise for bids for said improvements all in accordance with the applicable Minnesota Statutes, and that such bids are to be received at the City Hall of the City of Mendota Heights by 2:00 P.M. CST, Wednesday, February 20, 2019; at which time they will be publicly opened in the City Council Chambers of the City Hall by the City Clerk or her designee, will then be tabulated, and will then be considered by the City Council at its next regular Council meeting. Adopted by the City Council of the City of Mendota Heights this fifteenth day of January, 2019. page 99 CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor ATTEST _________________________ Lorri Smith, City Clerk page 100 Request for City Council Action DATE: January 15, 2019 TO: Mayor and City Council, City Administrator FROM: Meredith Lawrence, Recreation Program Coordinator Cheryl Jacobson, Assistant City Administrator SUBJECT: Approval of Par 3 Fairway Mower INTRODUCTION City Council is asked to approve the purchase of a fairway mower for the Mendota Heights Par 3. BACKGROUND To properly mow the golf course, Par 3 maintenance staff uses three primary pieces of mowing equipment—a rough mower, a fairway mower and a greens/tee mower. The equipment is owned and maintained by the City. Originally acquired by the city as a used piece of equipment, the current fairway mower is a 2000 Toro Reelmaster 5400D with approximately 2,000 hours on it (or the equivalent of 125,000 miles). This piece of equipment is used twice a week to maintain the course fairways. Before the start of each season, Par 3 equipment is assessed by the City’s Mechanic and Toro. The fairway mower has approximately $7,000 in needed repairs in preparation for the 2019 season, which far exceeds its value. Staff has worked with MTI, a state cooperative purchasing contract holder, to investigate the fairway mower and help determine a replacement piece of equipment that would be the best fit for the Par 3 golf course. MTI submitted an equipment proposal recommending a Toro Reelmaster 3100D. The 3100D is a three wheel unit, which provides improved maneuverability. Ongoing maintenance and seasonal cutting reel adjustments can be made by Par 3 staff with the new equipment technology. This piece of equipment is versatile and small enough to be able to cut the course tees as well. The course’s tees mower is currently not operable. The replacement equipment will serve as a fairway mower and tees mower. MTI has offered $1,250 as a trade-in value for the current fairway mower. In addition to trading in the Fairway mower, staff is also recommending trading in the Par 3 tees mower since it is not operable and requires significant repair and expense. MTI has offered $100 as a trade-in value page 101 for the tees mower. With the trade-in values factored in, the total cost of the Toro Reelmaster 3100D, including tax, is $32,475.79. BUDGET IMPACT The Par 3 budget does not include funding for the replacement of mowing equipment or the purchase of new/additional equipment. However, because of a favorable balance in the City’s general fund, a one-time transfer of funds from the General Fund to the Par 3 Golf Course fund is available, and recommended by the Finance Director and City Administrator. This piece of equipment could be used by other City departments if needed. In consultation with the Finance Director, a transfer from the General Fund balance to the Par 3 Golf Course Fund is recommended as the source of funding. RECOMMENDATION Staff is recommending that Council approve the purchase of a Toro Reelmaster 3100D for $32,475.79. ACTION REQUESTED If the Council agrees, it should, by motion authorize staff to purchase a Toro Reelmaster 3100D for the Par 3 Golf Course. page 102 Request for City Council Action DATE: January 15, 2019 TO: Mayor, City Council, and City Administrator FROM: Lorri Smith, City Clerk SUBJECT: Appointments to the Parks and Recreation Commission COMMENT: Introduction The Council is asked to appoint two Parks and Recreation Commissioners to fill the vacancies on the commission. Background Per City Code 2-2-2: Members of the Parks and Recreation Commission are limited to 3 consecutive full terms. Parks and Recreation Commission member Stephanie Levine served three full terms and cannot be reappointed. Commissioner Nissa Tupper decided not to be reappointed for another three-year term. Staff advertised the two open positions and the City Council will be interviewing nine applicants prior to this meeting. These two positions are for three year terms which will expire on January 31, 2022. Recommendation The Council should appoint two residents to the Commission by means of adopting the attached resolution, by filling in the blank for the names selected. Action Required If the Council concurs, it should, by motion, adopt Resolution 2019-08 Appointing Two Residents to the Parks and Recreation Commission. page 103 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2019 - 08 A RESOLUTION APPOINTING TWO CANDIDATES TO FILL VACANCIES ON THE PARKS AND RECREATION COMMISSION WHEREAS, the City Council of the City of Mendota Heights benefits from the active participation of citizens in representing the City on boards and commissions; and WHEREAS, the Parks and Recreation Commission serves as an advisory body to the City Council in addressing general matters of Parks and Recreation. They advise the City Council on matters pertaining to parks and recreation programs, make recommendations relating to the acquisition, development and improvement of the city's parks and recreational facilities and advise the Council on the establishment of written rules and regulations for the use and management of city parks; and WHEREAS, the City Council recognizes the excellent qualifications of Mendota Heights residents ________ and _____________ to serve the City on the Parks and Recreation Commission. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota, that it does hereby appoint ________ and ___________ to the Parks and Recreation Commission, for terms to expire on January 31, 2022. Adopted by the Mendota Heights City Council this 15th day of January, 2019. CITY COUNCIL CITY OF MENDOTA HEIGHTS ______________________________ ATTEST: Neil Garlock, Mayor _____________________________ Lorri Smith, City Clerk page 104 Request for City Council Action DATE: January 15, 2019 TO: Mayor and City Council, City Administrator FROM: Lorri Smith, City Clerk SUBJECT: Approve 2019 Schedule of City Council Meeting Dates COMMENT: Introduction The Council is asked to approve the 2019 schedule of City Council meeting dates. The attached calendar shows the meeting dates for City public meetings. The regularly schedule City Council meetings are held the first and third Tuesday of the month starting at 7:00 pm. Some of the regularly scheduled meetings need to be changed due to conflicts with holidays, days of religious observance, or Election Day. The Council is asked to review and approve the following Council meeting dates and times. It should be noted that instead of delaying the meeting start time to 8:00 pm on these days (as shown on the attached calendar), the date of the meeting could be changed to the following day (Wednesday) at the normal start time of 7:00 pm. Council Meeting to be Changed Reason to Change August 8, 2019 Night to Unite October 1, 2019 Rosh Hashana October 15, 2019 Sukkot November 5, 2019 Election Day Recommendation It is recommended that the Council review the attached 2019 meeting dates calendar, amend as needed, and approve. Action Required Staff recommends that the City Council make a motion to approve the 2019 City Council meeting dates. page 105 CITY CALENDAR page 106 Plan Comm Mtg | 7pm City Council Mtg | 7pm City Council Mtg | 7pm Parks Comm Mtg | 6:30pm Airport Comm Mtg | 7pm New Year’s Day Last Day of Kwanzaa Mar�n LutherKing, Jr. Day City Hall Closed (Public Works Open) City CouncilWorkshop | 6pm City Hall and PublicWorks Closed Epiphany City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com City Council Work Session | 4:30pm page 107 Airport Comm Mtg | 7pm Plan Comm Mtg | 7pm Parks Comm Mtg | 6:30pm City Council Mtg | 7pm City Council Mtg | 7pm City Hall and Public Works Closed Presidents’ Day Groundhog Day Super Bowl City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com Valen�nes Day City Council Work Session | 4:30pm page 108 Airport Comm Mtg | 7pm Plan Comm Mtg | 7pm Parks Comm Mtg | 6:30pm City Council Mtg | 7pm City Council Mtg | 7pm Time Begins Purim American Red Cross Month Maha Shivaratri Mardi Gras Holi Na�onal VietnamWar Veterans Day City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com Ash Wednesday First Day of SpringSt. Patrick’s Day Daylight Saving page 109 Airport Comm Mtg | 7pm Plan Comm Mtg | 7pm Parks Comm Mtg | 6:30pm City Council Mtg | 7pm City Council Mtg | 7pm Good FridayPassover beginsat sunset Easter Earth Day Administra�veProfessionals’ Day Public Works Closed(City Hall Open) Palm Sunday Severe WeatherAwareness Week Statewide Tornado DrillsNa�onal Volunteer Week Na�onal Financial Capability Month Ramanavami Isra and Mi’raj Tax Day Take Your Kidsto Work Day Last Day of Passover Orthodox Easter City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com page 110 Airport Comm Mtg | 7pm Plan Comm Mtg | 7pm Parks Comm Mtg | 6:30pm City Council Mtg | 7pm City Council Mtg | 7pm Cinco de Mayo Mother’s Day Armed Forces Day City Hall and PublicWorks Closed Memorial Day Victoria Day (Canada) Yom HaShoah Ramadan begins Na�onal Police Week Na�onal EMS Week SBA Na�onal Small Business Week Military Apprecia�on Month | Older American’s Month | Na�onal Building Safety Month Lailat Ul Qadr Kentucky Derby Military SpouseApprecia�on Day Peace Officers Memorial Day Na�onal DefenseTransporta�on Day Preakness Stakes Na�onal Mari�me Day Na�onal Missing Children’s Day City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com City of MHParks Celebra�on begins in the evening page 111 Airport Comm Mtg | 7pm Plan Comm Mtg | 7pm Parks Comm Mtg | 6:30pm City Council Mtg | 7pm City Council Mtg | 7pm Father’s Day Flag Day First Day of Summer Shavuot Eid al-Fitr - Ramadan ends CPR & AED Awareness Month Shavuot Lailat al-Qadr D-Day Observance Belmont Stakes American Eagle Day City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com City of MHParks Celebra�on & Officer Sco� Patrick Memorial 5K Run/Walk for Special Olympics page 112 Airport Comm Mtg | 7pm Plan Comm Mtg | 7pm Parks Comm Mtg | 6:30pm City Council Mtg | 7pm City Council Mtg | 7pm Independence Day City Hall and PublicWorks Closed Na�onal Korean WarVeterans Armis�ce Day Parents’ Day City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com page 113 Airport Comm Mtg | 7pm Plan Comm Mtg | 7pm Parks Comm Mtg | 6:30pm City Council Mtg | 8pm City Council Mtg | 7pm MN State FairBegins Tish’a B’Av Na�onal Night Out Eid al-Adha Janmashtami Purple Heart Day Raksha Bandhan Na�onal Avia�on Day Senior Ci�zens Day City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com page 114 Airport Comm Mtg | 7pm Plan Comm Mtg | 7pm Parks Comm Mtg | 6:30pm City Council Mtg | 7pm City Council Mtg | 7pm Labor Day Patriot Day911 Day of Service &Rememberance First Day of Autumn City Hall and PublicWorks Closed Rosh Hashana Na�onal “SeeSomething, SaySomething” Day Na�onal Preparedness Month Muharram(Al Hijrah New Year) Navaratri/Dassehra (Sept. 25-Oct. 7) Carl Garner FederalLands Cleanup Day Na�onal Grandparents Day Cons�tu�on Day & Ci�zenship Day Na�onal POW/MIARecogni�on Day City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com page 115 Airport Comm Mtg | 7pm Plan Comm Mtg | 8pm Parks Comm Mtg | 6:30pm City Council Mtg | 8pm City Council Mtg | 8pm Halloween Indigenous People’s Day Boss’ Day Public Works Closed (City Hall Open) Yom Kippur Sukkot Sukkot Rosh Hashana Shmini Atzeret Simchat Torah Fire Preven�on Week Cybersecurity Awareness Month Diwali City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com page 116 Airport Comm Mtg | 7pm Plan Comm Mtg | 7pm Parks Comm Mtg | 6:30pm City Council Mtg | 8pm City Council Mtg | 7pm Thanksgiving City Hall and PublicWorks Closed City Hall Closed(Public Works Open) City Hall and PublicWorks Closed Veterans Day America Recycles Day Winter Hazard Awareness Week DHS Cri�cal Infrastructure Preparedness Month Mawlid-al-Nabi Daylight Saving TimeEnds City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com District 197School Board Elec�on page 117 Airport Comm Mtg | 7pm * * TENTATIVE * * Plan Comm Mtg | 7pm Parks Comm Mtg | 6:30pm City Council Mtg | 7pm City Council Mtg | 7pm City Hall Closed(Public Works Open) City Hall and PublicWorks Closed Chanukah begins Chanukah ends Kwanzaa begins Pearl Harbor Remembrance Day First Day of Winter New Year’s Eve City of Mendota Heights 1101 Victoria Curve, Mendota Heights, MN 55118 651.452.1850 | City Hall: M-F | 8-4:30 pm www.mendota-heights.com page 118