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2020-09-15 Council Agenda PacketCITY OF MENDOTA HEIGHTS CITY COUNCIL AGENDA September 15, 2020 – 6:00 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 September 1, 2020 City Council Minutes b.Acknowledge August 12, 2020 Parks and Recreation Commission Meeting Minutes c.Acknowledge July 2020 Par 3 Financial Report d.Acceptance of Retirement of Firefighter Rich Burrows e.Acknowledge July 2020 Fire Synopsis f.Approve Resolution 2020-59 Providing for the Sale of $3,665,000 General Obligation Bonds, Series 2020A g.Approve Ordinance 559 Granting a Cable Television Franchise to Comcast of St. Paul, Inc. h.Accepting Wetland Delineation Report and Findings of ‘No Wetland’ for 2393 Pilot Knob Road i.Resolution 2020-57 Accept Bids and Award Contract for the 2020 Sanitary Sewer Lining Project j.Resolution 2020-58 Accept Bids and Award Contract for the Lemay Lake Erosion Control Project k.Approval of Claims List 6.Citizen Comment Period (for items not on the agenda) *See guidelines below 7.Public Hearing - none 8.New and Unfinished Business a.Adopting Preliminary Budget and Levy 1.Resolution 2020-60 Approving the Proposed 2020 Tax Levy Collectible 2021 2.Resolution 2020-61 Adopting the Preliminary 2021 Budget 3.Resolution 2020-62 Final 2020 Tax Levy for Special Taxing District 1 Collectible 2021 9.Community Announcements 10.Council Comments 11.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. Due to COVID-19 requirements for sanitation, please wait until the microphone is cleaned between commenters. 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 Tuesday, September 1, 2020 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, Minnesota was held at 6:00 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Garlock called the meeting to order at 6:00 p.m. Councilors Duggan, Paper, Miller, and Petschel were also present. 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 moved approval of the consent calendar as presented, pulling items j. and k. a.Approval of August 13, 2020 Council Work Session Minutes b. Approval of August 18, 2020 Council Work Session Minutes c.Approval of August 18, 2020 City Council Minutes d. Acknowledge the July 28, 2020 Planning Commission Meeting Minutes e.Acknowledge the March 10, 2020 Parks/Rec Commission Meeting Minutes f.Approve City Hall Business Hours g.Approve Resolution 2020-55 Approving Appraisal of Permanent Easements from MnDOT – Valley Park Drainage Improvements h. Approve Resolution 2020-56 Approving a Joint Powers Agreement with Dakota County for 2085 Valencour Circle i.Approve Resolution 2020-52 Approving the CARES Act Grant Agreement with Dakota County for COVID Related Election Expenses j.Authorize Execution of the Space Needs Study Agreement with CNH Architects Page 3 k.Approve Proposal from Swanson-Haskamp Consulting LLC to Provide Consulting Planning Services for the Comprehensive Plan Update l.Approval of July 2020 Treasurer’s Report m.Approval of Claims List Councilor Miller seconded the motion. Ayes: 5 Nays: 0 PULLED CONSENT AGENDA ITEMS J) AUTHORIZE EXECUTION OF THE SPACE NEEDS STUDY AGREEMENT WITH CNH ARCHITECTS Councilor Duggan stated that he would like to see a not to exceed dollar amount included in the agreement. City Ad ministrator Mark McNeill commented that the contract amount calls for $12,200 plus any reimbursable expenses. He noted that language could be added to specify that. Councilor Duggan moved to AUTHORIZE EXECUTION OF THE SPACE NEEDS STUDY AGREEMENT WITH CNH ARCHITECTS WITH THE ADDED NOT TO EXCEED LANGUAGE. Councilor Petschel seconded the motion. Ayes: 5 Nays: 0 K) APPROVE PROPOSAL FROM SWANSON-HASKAMP CONSULTING LLC TO PROVIDE CONSULTING PLANNING SERVICES FOR THE COMPREHENSIVE PLAN UPDATE Councilor Duggan stated that he understands that the City has already spent over $90,000 on the Comprehensive Plan process. He believed that much of the material could be addressed internally by staff and asked that the Council hold a workshop to further discuss what exactly is needed and whether that could be done internally. Councilor Paper noted that this was discussed in the last workshop and staff explained why this was necessary. He recognized the time and money that has been spent on this and stated that he would like to get this done right and be able to move forward without further burdening staff. Councilor Miller agreed that spending funds should be done with good stewardship, recognizing that this is a cusp of challenging economic times. He stated that completing this process is important, as is saving funds. He asked if this is something that could be done in-house by staff and stated that if the answer is no, he would be okay choosing to proceed with the expert. Councilor Petschel commented that in checking with other cities, this amount of money is considerably less than what other cities of this size have spent for this process. She stated that the Met Council has set demands that force cities to spend more resources to meet their requirements. She stated that at the last Page 4 workshop meeting where this was discussed, staff stated that they do not have the time to complete this. She stated that there are two pieces of property that need to be reguided, in terms of use. She stated that there is some urgency in determining the guiding of the dog park. She stated that she wants to see this plan completed, noting that the residents have spent time and effort throughout this process. She stated that she believes that this is money that needs to be spent. Mayor Garlock stated that he has also heard that some cities of this size have spent about $200,000 on their Comprehensive Plan process. He stated that staff has estimated a cost of about $15,000 to complete the remaining items. He commented that this would be money well spent. Mayor Garlock moved to APPROVE THE PROPOSAL FROM SWANSON-HASKAMP CONSULTING LLC TO PROVIDE CONSULTING PLANNING SERVICES FOR THE COMPREHENSIVE PLAN UPDATE, with fees in the neighborhood of $15,000. Councilor Miller seconded the motion. Further discussion: Councilor Duggan asked if the Council would be interested in placing a cap of $10,000 on the services. He stated that the estimated cost has increased from $10,000 to $15,000. City Administrator Mark McNeill commented that $10,000 was an estimate from staff and the more accurate cost estimate was included in the staff report. He noted that staff will attempt to complete the work that could be completed in-house. Ayes: 4 Nays: 1 (Duggan) PUBLIC COMMENTS City Clerk Lorri Smith read aloud a written statement submitted by Brian Hamel of Sibley Area Youth Hockey Association, asking for the Council to reconsider allowing charitable gambling in the city. PRESENTATIONS A)COMCAST FRANCHISE RENEWAL AGREEMENT City Administrator Mark McNeill stated that for quite some time NDC4 has been in the process of negotiating a renewal of the franchise fee agreement with Comcast. He explained that the City will need to post notice of the ordinance to be considered and therefore staff proposes that the presentation occur tonight, and the Council can take action on the ordinance at its next meeting. He introduced NDC4 staff members, and NDC4 Board Member Mickey Keiffer, who, along with Councilor Paper, represented the City on the Board. Jodie Miller, NDC4 Executive Director, provided the Council with an update on the renewal of the Comcast franchise fee agreement. She stated that they have come to a mutual agreement with Comcast. She provided highlights of the elements included in the proposed agreement. She stated that they would not have achieved this agreement if they did not have the support of the City in entering into the more formal negotiation process. Page 5 Brian Grogan, Attorney for NDC4, reported that it has been a long process, but the Cable Commission has recommended that each member city adopt the new agreement. He provided details on FCC 621 Order which became effective September 26, 2019 and reinterprets the 35-year-old Cable Act. He noted that Mendota Heights, the other member cities of NDC4, and many other cities have appealed the order. He noted that although the order is in the process of appeal, the negotiations had to work around the order as it stands. He provided details on the Side Letter Agreement and highlighted key terms of the new Franchise Agreement. Councilor Paper noted that there has been much discussion on the Cable Commission about this process. City Administrator Mark McNeill noted that this will come before the Council for formal action at its next meeting. PUBLIC HEARINGS No items scheduled. NEW AND UNFINISHED BUSINESS A)RESOLUTION 2020-53 APPROVING A PRELIMINARY AND FINAL PLAT OF “MENDOTA HEIGHTS SENIOR LIVING” – THE LINDEN OF MENDOTA HEIGHTS, 725 LINDEN STREET AND 735 MAPLE STREET (PLANNING CASE NO. 2020-16) Community Development Director Tim Benetti explained that the Council was being asked to consider adopting a resolution approving a combined preliminary and final plat of a new subdivision to be titled “Mendota Heights Senior Living”. The applicant is Grand Real Estate Advisors (GREA), doing business as MH Development LLC. Councilor Paper asked when Outlot A would be returned to the City. Mr. Benetti replied that there is not a timeline but noted that the City would want to ensure that the work in that area is completed before it is turned back. Councilor Petschel asked if there is a retaining wall within Outlot A. Mr. Benetti confirmed that there is a retaining wall within Outlot A. He stated that there would be maintenance rights deferred to the condominium association related to the retaining wall, but the retaining wall would remain in the outlot. Councilor Duggan asked if the retaining wall was repaired/rebuilt. Public Works Director Ryan Ruzek explained that the walls along the Linden Lofts ponds were built with quality boulders that will stand the test of time. He noted that the smaller walls behind the village were built with smaller boulders and were repaired. Councilor Duggan moved to approve RESOLUTION 2020-53 APPROVING THE PRELIMINARY AND FINAL PLAT OF MENDOTA HEIGHTS SENIOR LIVING LOCATED AT 725 LINDEN STREET AND 735 MAPLE STREET. Page 6 Mayor Garlock seconded the motion. Ayes: 5 Nays: 0 B)RESOLUTION 2020-54 APPROVING A WETLANDS PERMIT FOR 781 PONDHAVEN LANE – JOHN AND LISA STEVEKEN (PLANNING CASE NO. 2020-18) Community Development Director Tim Benetti stated the Council was being asked to consider a resolution approving a Wetlands Permit to John and Lis Steveken, owners of the property at 781 Pondhaven Lane. Councilor Duggan referenced the language related to the reestablishment of the wetland buffer and asked for details on the use of the word reestablishment. Mr. Benetti noted that a portion of the wetland buffer would be impacted and is currently not in the best condition. He stated that the applicants will work with the Natural Resources Technician to add native plantings to improve the buffer area. Councilor Duggan moved to adopt RESOLUTION 2020-54 APPROVING A WETLANDS PERMIT FOR 781 PONDHAVEN LANE. Councilor Petschel seconded the motion. Ayes: 5 Nays: 0 C) DISCUSSION REGARDING THE OPERATION OF THE ROGERS LAKE SKATEPARK City Administrator Mark McNeill stated that the Council has been asked to discuss the maintenance and operation of the Rogers Lake Skatepark. He made a presentation which outlined the history of the skate park at Rogers Lake, which also described operating issues and long term maintenance and capital needs. He also read written comments which had been received from three residents who had asked that their comments be read at the meeting. Councilor Paper stated that he received many emails from residents, and based on those emails it was nice to find out the majority of people using the park are residents. He stated that it is a community park and the users need to be aware of the community around them. There are young children using the park and they do not need to be exposed to certain activities. He stated that people have worked hard to bring new amenities to the community, and therefore he does not want to see the amenity taken away. However, he said that he recognizes that there are challenges caused by the activities of some that bring consequences to the other users of the park. He believed that this subject should go back to the Park and Rec Commission for further discussion. Councilor Miller stated that he grew up skateboarding in Mendota Heights and remembers what it was like without a skatepark. He commented that seeing the skatepark come to fruition made him happy. He stated that he loves having this amenity in the City and is not in favor of closing it or turning it into something else. He commented that he also does not want to throw money into something that needs repeated repairs because of vandalism. He commented that the people in attendance at the meeting tonight Page 7 who support the park are unlikely those causing the issues. He explained that the City has finite resources and the police have limited time to put towards this park. He asked the people that are using the park responsibly to call out the people that are acting irresponsibly in order to protect this amenity. He commented that repeatedly repairing this park is not a responsible use of tax dollars. He commented that it will take a collaborative effort in order to repair and maintain this amenity. He asked that the users of the park do their best to stamp out that negative activity. He stated that everyone wants this to be successful, but if it is going to be viable going forward, changes will need to be made. Mayor Garlock commented that he received more than 60 emails from residents expressing their desire to keep the skatepark. He stated that the Council cannot condone criminal damage to property, use of drugs, and customization by users. He explained that when equipment is redesigned by the users, the City could be liable. He stated that if the users of the park want to see it remain, they should either address unlawful activity or call the police department to address the problem. He stated that some of the comments received by City staff and the Council have been inappropriate and he encouraged the users of the park to be respectful. Councilor Petschel stated that the request for Skatepark, years ago, was a grassroots effort by children that brought the idea forward to the community. She feels that the skatepark is meant to serve the children of the community. She recognized that not all children are traditional athletes and the parks should provide opportunity for all. She stated that resources have been spent on the skatepark because the City believes in that amenity. She commented that the skatepark operated for many years without any issues, and believed that the problem issues have occurred in the past two years--an increase in vandalism, concrete being added to modify features, and destruction of the portable restroom. She stated that the fencing surrounding the site was vandalized when the park was closed during COVID restrictions to the point that it was no longer structurally sound, and had to be removed. Councilor Petschel commented further that the skatepark location is remote and somewhat secluded which makes it easier for vandalism and non-legal activities to occur. She commented that there has never been this type of systematic damage to another park. She stated that the surface is aging, there have been multiple issues of vandalism and feels that the park is no longer safe. She stated that she believes that because of the needed repairs, she thinks that this would be the time for the Park and Rec Commission to review this park. She said that that process would involve public engagement. She stated that she is supportive of a skatepark, but is not convinced that this is the right location for that amenity, as it is a secluded location that makes it conducive for this negative behavior. Councilor Duggan stated that in 2003/2004, he was one of the members of the Council that voted in favor of establishing the skatepark. He stated that the Council has been challenged in the budget discussion meetings and unfortunately a skatepark sometimes falls to the bottom of the barrel. He reviewed the negative behaviors and activities that have occurred at the skatepark, noting that the most offensive that he finds is the disrespect to staff. He stated that it is heartening to see the support that has been expressed in support of this amenity. He stated that if the people want the skateboard park, they need to follow the rules. He believed that the park should be left as is until the Park and Rec Commission can review the topic and make a recommendation to the Council. He noted that the members of the public can provide their input at the Park and Rec Commission meeting. He stated that Mendota Heights has been known for many things and hoped that gracious could return and be one of those things. Page 8 Mayor Garlock welcomed members of the public to provide input. Kurt Vogan, 1580 Boardwalk Court, stated that he uses the skatepark. He stated that he has heard of some of the issues and has seen the trash at the park. He commented that adults and children of Mendota Heights are using the park. He agreed with the suggestion to move the park to another location because this location is so secluded. Craig Williams, 2259 Fieldstone Drive, stated that he skateboarded at a young age and was involved in a skatepark organization in the cities of Burnsville, Duluth, and Saint Paul. He stated that in each one of those instances it was to build something new, and this is the first time where he is attempting to not let something close down. He stated that he uses the skatepark and selected his home because of the proximity to it. He stated that users of the skatepark felt threatened when this topic arose. He stated that after discussions with several people, the consensus of those was that everyone wants this to be a fun and worthwhile park for all users. He commented that the negative activities are a distraction for everyone. He highlighted some of the key points from the users: to be organized and available, to establish a Board with contact information, the skatepark user website “DirtyDota” is implementing a reporting tool for different negative activities and safety concerns, and take ownership of what is occurring at the site. He noted that the Board would be willing to address safety and cleanliness themselves. He stated that they would also like to increase their participation with police in regard to deterring and reporting negative activity. He stated that they would like to reinstate signage and a positive goodwill message, in order to lead by example. He stated that they would eventually like to see a timeline of expectations and when decisions would be made. He noted that his contact information is included in his written communications. Councilor Petschel recommended that Mr. Williams contact information be provided when this moves to the Park and Rec Commission, as he seems to represent a larger volume of residents and users of the park. Adam Smith, 649 Hampshire Drive, stated that he grew up skateboarding and explained that when he was young, there were not skateparks and skateboarding was treated almost as a crime. He stated that it pains him to hear about the destruction of equipment at the skatepark. He commented that he and his son have a lot of good experiences at the park. He stated that the older children and adults have been respectful of his son and encourage him. He noted that even though the skatepark is getting old, it is in decent shape and gets a lot of use. He did not want to see the bad activity outweigh the good that occurs. Resident of 1033 Western Avenue in Saint Paul, stated that she is a roller skater and she loves the skatepark. She commented that she is new to the community and since she found the skatepark, she now frequents many other Mendota Heights businesses. She stated that she has been welcomed by the skatepark community and she now has developed friendships. She stated that the skatepark provides recreation activities for those that cannot afford traditional sports activities. She stated that many users keep equipment in their vehicles to clean up after storms and clean up trash after leaving the park. She stated that the users would like to become more organized in order to keep the park clean and deter the negative activity. She stated that she has witnessed users stop criminal activity. She stated that the users of the park want the park to flourish and are willing to put in the time. Teddy, 1643 Charles Avenue, stated that she is 52 and is a skateboarder, among many other sports activities. She stated that she works in Mendota Heights. She stated that there is a diverse community that uses the skatepark. She reviewed some of the improvements that would be needed for the park with Page 9 possible additions. She stated that she loves that Rogers Lake Park provides other options like basketball, volleyball, fishing, walking, and skating. She recognized the vandalism that occurs and needs to be addressed. She stated that the users of the park are willing to make contributions to improve the park and keep it maintained. She stated that the parks are an important part of bringing people together. She asked if the equipment from this park could be moved, should a new location be chosen. Councilor Petschel confirmed that the equipment could be moved if another location is chosen. It was estimated that it would cost about $70,000 to remodel the skatepark, which is low in price compared to the price to build other park infrastructure. Councilor Petschel stated that the job of the City is to serve the entire community. She stated that those that enjoy this type of recreation deserve to be served as well. She commented that the City cannot continue business as usual because of the challenges that the park has faced in recent times and the aging equipment. She believed that this would be the perfect time to give the Park and Rec Commission an opportunity to review this park. She stated that the park should be reviewed from top to bottom; its location and community input to find the most efficient way to address these issues. Councilor Miller explained that this would go before the Park and Rec Commission for review and to make a recommendation and would then come back to the Council to make the final decision. Mayor Garlock confirmed the consensus of the Council for this to go before the Park and Rec Commission for review. Councilor Duggan asked if the skatepark would continue to operate during this time. He noted that there is not a bathroom and was unsure if a bathroom was needed for the park to remain open. City Administrator Mark McNeill noted that the park has been operating for the past few months without a restroom, and therefore while it was not ideal, he did not see the lack of a restroom as something that would require use of the skatepark to stop. Councilor Miller asked if there is a seasonal closing date for the park. Public Works Director Ryan Ruzek commented that there is not an end of season date for the skatepark and noted that even after some snowfall, users sometimes bring shovels out. Mayor Garlock encouraged users to be respectful when speaking with staff and when using the park. He commented that the skatepark should be a place where people can bring their children without seeing unlawful and criminal activity. He stated that if users see something, they need to say something. Councilor Petschel encouraged residents to pay attention to the City’s social media and subscribe to the weekly updates. Councilor Paper asked if the City has any old job boxes for broom storage, noting that users could keep some of that equipment at the park if desired. Public Works Director Ryan Ruzek commented that there are some storage containers that could be purchased for a low price. Page 10 Councilor Duggan asked if staff believes that this item could fit on the agenda for the Park and Rec Commission next week. Mr. Ruzek noted that the Commission will be discussing pickle ball and noted that the skatepark could fit into that discussion. The consensus of the Council was that the Parks and Recreation Commission should be directed to study both the short and long term issues at the skatepark, including the best location, and report back to the City Council. COMMUNITY ANNOUNCEMENTS City Administrator Mark McNeill announced the upcoming outdoor movie night and noted a temporary closure of the Par 3 course for aeration. COUNCIL COMMENTS Councilor Miller thanked everyone that took time out of their schedule to come tonight and speak. He stated that clearly people are passionate about the skatepark. He asked everyone to spread the word and attempt to stop the negative activity at the park in order to keep the skatepark as a viable option. Councilor Paper thanked everyone that spoke tonight and sent emails. He stated that he does not want to see another youth activity leave the community. ADJOURN Councilor Duggan moved to adjourn. Councilor Petschel seconded the motion. Ayes: 5 Nays: 0 Mayor Garlock adjourned the meeting at 7:53 p.m. ____________________________________ Neil Garlock Mayor ATTEST: _______________________________ Lorri Smith City Clerk Page 11 Page 12 CITY OF MENDOTA HEIGHTS, DAKOTA COUNTY, MINNESOTA PARKS AND RECREATION MEETING AUGUST 12, 2020 The August meeting of the Mendota Heights Parks and Recreation Commission was held on Wednesday, August 12, 2020, at Mendota Heights City Hall, 1101 Victoria Curve. 1. Call to Order – Chair Steve Goldade called the meeting to order at 6:30 p.m. 2. Roll Call – The following Commissioners were present: Chair Steve Goldade, Commissioners: Patrick Cotter, Pat Hinderscheid, Bob Klepperich, Stephanie Meyer, Dan Sherer, and Amy Smith. Staff present: Recreation Program Coordinator, Meredith Lawrence, Assistant City Administrator, Cheryl Jacobson, Public Works Director, Ryan Ruzek, Natural Resource Technician, Krista Spreiter and Community Development Director, Tim Benetti. 3. Pledge of Allegiance The Pledge of Allegiance was recited. Chair Goldade thanked City staff for the contributions they have made over the past several months. He thanked the Commission members for their effort during the past few months and thanked the residents who have been enjoying the parks and trails. He re ad aloud a statement related to the operation of public meetings during this time and safety measures that have been implemented due to COVID-19. 4. Approval of Agenda Motion Klepperich/second Cotter, to approve the agenda AYES 7: NAYS 0 5.a Approval of Minutes from March 10, 2020 Regular Meeting Motion Cotter/second Klepperich, to approve the minutes of the March 10, 2020 Parks and Recreation Commission Regular Meeting.AYES 7: NAYS 0 6. Citizen Comment Period (for items not on the agenda) None. 7.Review of Valley View Oak 3rd Addition Community Development Director Tim Benetti stated that the Parks and Recreation Commission is being asked to review and provide comments on a proposed subdivision, generally located near the NW quadrant of Victoria C urve and Glenhill Road. The subdivision would create eight (8) single family lots for future development. The Parks and Recreation Commission is requested to provide comments, concerns, or suggestions which staff will forward back to the Planning Commission and the developer/applicant for subsequent consideration. Mr. Benetti provided a staff report and a presentation on this item to the Commission (which is available for viewing through the City’s website). Chair Goldade summarized that this was introduced at the Planning Commission meeting and tabled to provide an opportunity for this Commission to review the request. Page 13 Mr. Benetti confirmed that this would go back to the Planning Commission in order to provide a recommendation to the Council. Chair Goldade asked if Marie Park would be the closest City park to this location. Recreation Program Coordinator Meredith Lawrence stated that City Center Baseball Field would be the closest, but Marie Park would be the closest park with a playground amenity . Chair Goldade stated that he would suggest discussion of a trail that would allow connection from that neighborhood to Glenhill. Mr. Benetti stated that is a great idea but did not believe there were any trail systems in the area that could be connected to. He stated that comment could be passed on to the Planning Commission, but he was unsure if a trail could run through the lift station easement because of the grade. Chair Goldade advised of a possible connection that could be made to keep pedes trian traffic off the frontage road. He asked for additional details on the slope analysis. Mr. Benetti provided details on the slope and property boundaries. Public Works Director Ryan Ruzek provided additional details on the bluff and applicable setback requirements. Chair Goldade recognized how wooded the area is currently and that tree replacement would not be done on a one-by-one basis. He asked if the City could have an expectation that a certain number of trees would be replaced on each lo t. Mr. Benetti replied that typically certain conditions or requirements are established under a Critical Area Conditional Use Permit. He stated that typically trees of six inches or greater that are removed are replaced on a one -to-one or two-to-one requirement. He noted that the type of tree can also be specified and that would be included in the conditions of the CUP. Commissioner Sherer commented that there are steep slopes on the site, and he would wonder about the slope stability. He asked if the construction impact for the retaining wall would be within the setback. He noted that a number of trees would be impacted by the grading and construction of the wall. Mr. Ruzek stated that a specific wall design or type has not been proposed, therefore the construction measures are still unknown. He stated that there would be a 40-foot setback from the bluff to the wall, noting two portions that may have difficulty maintaining that setback. Commissioner Sherer asked if some soil sampling has been completed. Mr. Ruzek stated that soil samples are proposed to be collected but was unsure if that work had been done as of yet. Commissioner Sherer asked if the City could require that geotechnical inspectors be inside during the construction to ensure proper compaction to prevent wall and slope failures. He commented that the sediment and infiltration pond require certain materials and maintenance and asked who would be responsible for maintenance. Page 14 Mr. Ruzek commented that the maintenance of the pond would most likely be the responsibility of the City. He stated that the proposed plan would reduce the flows over the bluff by 50 percent, compared to the existing conditions. He recognized that comments were made at the Planning Commission meeting related to drainage concerns. Commissioner Cotter asked about the amount of land that would be held in conservation easement. Mr. Benetti replied that about one -third of the site would be held in conservation easement. He confirmed that the 40-foot setback would be included in that total. He explained that the intent would be to ensure that once the lots are turned over to private ownership, that area still remains protected. Commissioner Cotter commented that the storm pond would abut Victoria Curve and would be most visible to those driving by. He asked if that placement was chosen because of the topography. Mr. Ruzek commented that the proposed location was chosen because that is the only location where discharge could occur that would not go into Mendota. Commissioner Cotter asked if there would be treatment of the pond. Mr. Ruzek commented that he would anticipate that dredging would be needed in 20 or 30 years. He explained that as long as pond as functioning, they do not require maintenance. Commissioner Cotter asked if there would be a responsibility for the type of trees and vegetation planted around the pond. Mr. Ruzek commented that the City would not have ownership over the trees. He stated that if the development moves ahead, he would support the development having an organization association to handle things such as trees and vegetation. Commissioner Meyer asked what would happen to the triangle piece of property owned by the City and how it would be accessed. Mr. Ruzek commented that if a tree fell down, it would not be an issue of public safety and would remain. He was unsure that there is a wide enough easement to access the parcel. He noted that if the City needed to access the parcel it could attempt to make an agreement with a property owner. Commissioner Meyer asked for details on the barn that was mentioned on the property. Mr. Benetti replied that there is an old horse barn/garage owned by the property owner s. Commissioner Meyer referenced the properties on the Mendota side and asked if there have been concerns raised by those property owners. Mr. Benetti replied that residents from Mendota attended the Planning Commission public hearing and expressed conce rn with drainage running down the bluff line. He stated that there Page 15 were a number of concerns related to underground springs in the area that come out of the bluff. He stated that the residents were concerned that this could impact those springs. Mr. Ruzek stated that staff has received a lot of comments from the neighboring homes in both cities. He recognized that people are hesitant to change and this request includes a number of variances. Commissioner Meyer asked the size of each lot proposed an d whether the conserved area would count in the lot size. Mr. Benetti replied that each lot would be ranging from 19,580 square feet to 31,000 square feet. He commented that most of the lots would be bigger than they have to be in order to protect the backyard space. He stated that the developable portion would be the front third or half while the remainder would be protected. Commissioner Meyer asked if the City would have any say in the type of trees replanted. She stated that perhaps a pollinator friendly planting could occur near the pond. Mr. Benetti stated that the Master Gardeners and Natural Resources Technician have reviewed the plan and provided their recommendations. He stated that a condition could be added that the City can review and delegate the variety of trees that could be planted and how those would be maintained. Commissioner Smith asked if there has been thought about landscape services that may be used on the properties that could end up as runoff into the bluff. Mr. Benetti stated that could be addressed as part of an HOA agreement. He stated that the City encourages new build ing sites to use the pollinator-friendly policy. Chair Goldade thanked the members of the public and the property owner who are present. Mr. Benetti noted that this meeting was noticed but not as a public hearing. He stated that the Commission does not need to provide an opportunity for those members to speak, as the public would have another opportunity to speak at the Planning Commission public hea ring. Chair Goldade provided an opportunity for those members to speak. Michelle Culligan, applicant, commented that they have many challenges with the site. She stated that whether the conservation area is held in an easement or through an HOA, it will be protected. She explained that the goal would be to preserve as many trees as possible. She stated that the City would still have the ability to place a walking path along Victoria Curve within that right-of -way, if desired. She stated that the goal is to build a nice enclave. She stated that it would be difficult to have a walking path through the site because of the topography of the site and the fact that it is heavily wooded. She stated that t here is a lot north of the City-owned lot that is vacant and could perhaps provide access to that parcel. Kathryn Jewell, 1948 Glenhill Road, stated that there have been comments about the development and there is an intent to do well but it will also be up to what each homeowner decides to do on their lot. She stated that this Commission has an interest in greenspace, and she has concern about the trees and disruption that will occur. She stated that her property is about one acre and about one third of the lot is wooded. She noted that in the time she has Page 16 lived on the property she has had to remove many Oak and Ash trees because of disease. She hoped that the Commission would keep those items in mind when making their recommendation. Jane McKay,1949 Glenhill Road, stated that the greenspace beh ind the retaining wall would not be able to be accessed in order to remove diseased trees. She stated that they have removed many trees on their property because of disease and would want to ensure that the new homeowners maintain their trees. She asked how those property owners would access the trees when the retaining wall blocks access. Chair Goldade stated that the intent of this case was to review the request and provide input. He noted that this will go back to the Planning Commission for a contin uation of the public hearing on August 25th. 8.Acknowledgement of Reports Chair Goldade read the titles of the three updates (Par 3 and Recreation Updates) and polled the Commissioners for questions. 8.a Par 3 Update Recreation Program Coordinator Meredith Lawrence commented that COVID-19 has heavily impacted recreational programming. She stated that the Par 3 was opened on April 27 th with a fair amount of changes to ensure public health and safety. She reviewed the statistics from the Par 3 course, noting that the course is busier than it has ever been. She commented that it has been great to see people be active in a safe manner. She stated that maintenance crews have worked hard to keep the course in good shape with the increased use. She stated that the monthly expenditure report shows the revenue and expenditures through June. Commissioner Hinderscheid asked what staff would attribute the higher number of rounds to. Ms. Lawrence replied that for some time golf was the only entertainment available due to COVID-19 and therefore there has been a higher use statewide as it is a safe form of outdoor entertainment. She stated that golf carts are still not being offered at this time because there is not sufficient staffing to sanitize the carts. She commented that she does not plan to use carts for the remainder of this season. Commissioner Smith asked if there has been thought of putting a vending machine at the Par 3 to offer people snacks and beverages. Ms. Lawrence commented that there was a vending machine in the past. She stated that they could look into that but would hope that concessions would be back next year. 8.b Recreation Update Recreation Program Coordinator Meredith Lawrence stated that many of the events and programs were canceled based on the Executive Orders of the Governor. She stated that many of the park’s amenities were closed and then reopened as guidance allowed. She commented that the Parks and Facilities COVID-19 Plan is posted on the City website and all users must follow that plan. She reported that adult softball has started and has been going well and highlighted some other events that have occurred in modified formats. She highlighted upcoming events, including movie nights. Page 17 Commissioner Cotter thanked staff for the updates they provided throughout the past few months. He recognized that staff has been working hard to adapt to the challenging times. Chair Goldade stated that he believes there is interest for the Commission to review the field allocation policy at the September meeting. Motion Klepperich/second Cotter to acknowledge the staff reports.AYES 7: NAYES 0 9.New Business 9.a Rogers Lake Eagle Scout Service Project Natural Resources Technician Krista Spreiter stated that Ted Lawder, a Mendota Heights resident, and member of Boy Scout Troop #9067, approached the City with a proposal to complete a service project as part of the requirements of becoming an Eagle Scout. Eagle Scout Service Projects must utilize planning, development, and leadership skills to benefit a religious institution, school, or community. Ted expressed interest in potential service projects that would benefit Rogers Lake. After discussing several options with City staff, he chose to create a lakeshore buffer near the fishing pier at Rogers Lake Park. The lakeshore buffer will be an extension of the native vegetative buffer that already exists at Rogers Lake Park. Ms. Spreiter stated that she is working with another Eagle Scout on a tree planting project in Valley Park. Chair Goldade thanked the Eagle Scout candidates for their contributions to the parks and the City. Commissioner Meyer asked where the tree planting would occur in Valley Park. Ms. Spreiter replied that they want to replace the Ash that will eventually be removed. She noted that some plantings will occur near the ballfield and near the trail. She noted that clearing of some existing invasives would occur prior to the plantings. Chair Goldade stated that perhaps members of the Commission could stop by on a workday. He referenced brush removal on the west side of Rogers lake and asked for details. Ms. Spreiter reported that Great River Greening is removing buckthorn along the side of Rogers Lake which will be replaced with an understory woodland mix. 10. Unfinished Business 10.a Work Session with City Council Review Recreation Program Coordinator Meredith Lawrence reported that the City Council and Parks and Recreation Commission met on July 14, 2020 for a work session to discuss park improvement projects for the next two years. The following park project items were discussed: Wentworth grant requirements for completion, Wentworth tennis court repla cement, pickleball court location, basketball expansion at Hagstrom King, Mendakota dugouts, playground replacement at Marie Park, the future Dog Park and Skateboard Park. Chair Goldade highlighted the topics that could appear on future Commission agend as based on the discussion at the joint meeting. Page 18 Commissioner Smith referenced the pickleball courts and the price to convert the tennis and/or hockey courts. She asked the difference in cost for the two conversions. Public Works Director Ryan Ruzek stated that to build a new pickleball court would be about $120,000. He commented that to redo the pavement at the Marie Park tennis court was about $80,000. He stated that to covert the hockey rink would be about $20,000. Ms. Lawrence commented that the minutes reflected a higher number and will be amended. Mr. Ruzek provided an update on the Wentworth warming house construction, noting that the Council approved the contract for that work to be completed. He believed that construction would begin in September and the structure is anticipated to be available for the winter hockey season. He noted that the trail and parking lot improvements would be completed in 2021. He confirmed that the basketball court would remain and would not be impacted by t he project. He reported that the Hagstrom King basketball court concrete slab has been poured. Ms. Lawrence stated that pickleball was identified as a discussion topic for the Commission from the City Council. She asked the Commission to be prepared to discuss that item in September. Commissioner Cotter commented that he was encouraged by the discussion of a ten to 20-year Capital Improvement Plan. He stated that while there is not much more developable space and revenue for parks, the Par 3 will be paid off by 2023 and it appears that the Commission could make the case that a substantial amount of the funds that were used for the Par 3 could be used for a long-term parks plan. Commissioner Sherer commented that Rosemount is building a large skate complex which may draw some of the users away from the Mendota Heights facility. Commissioner Meyer commented that while she believes the funds being expended toward the Par 3 should continue to be allocated towards parks after that debt expires. She en couraged the Commission to discuss that element and present a united front in order to ensure there is sufficient funding for the parks going forward. Chair Goldade stated that parks funding continues to be a topic and has been for years past. Commissioner Hinderscheid agreed that there has been a discussion related to a sustained revenue source for the parks for many years. 11.Staff Announcements Recreation Program Coordinator Meredith Lawrence expressed thanks to the Commission and the residents for their understanding through the challenges of the year related to COVID -19. 12. Commission Comments and Park Updates Commissioner Smith Received a request to add lighting to the tennis courts at Friendly Hills Park Landscaping near the sign needs attention and improvement There are dead trees on the trail to Friendly Hills Park that need to be removed Page 19 Mr. Ruzek stated that staff has worked with residents as some of those trees are located on private property. He noted that staff could review those locations. Commissioner Smith noted that the tables at Market Park have been heavily used. Commissioner Hinderscheid Pleased to see the Dog Park was extended for another five years Ivy Hills Park looks great, though the pond has green algae. Mr. Ruzek commented that the weeds observed are healthy plants. Commissioner Hinderscheid commented that he is excited to see the Eagle Scout projects and is happy to see the City attempting to find space for pickleball in the community. Chair Goldade commented that some users of the Dog Park raised funds for a bench and asked staff for an update. Mr. Ruzek stated that a user of the park recently passed away and a GoFundMe page was setup with almost $2,000 raised. $1,000 was submitted to the City for a park benc h donation and the remaining funds will be used to install shade trees in the park. Chair Meyer Marie Park has been heavily used and people are enjoying the tennis courts and other parks amenities Thanks to Public Works staff for the excellent job they do maintaining the parks Commissioner Cotter COVID-19 has made the community more grateful for the park’s amenities. It has been great to see the community out enjoying all the parks amenities during these times. Excited about the improvements at Rogers Lake and thanks to the Eagle Scouts. Commissioner Klepperich He has been watching over Mendakota Park and Civic Center and the fields are in great condition as they have not been used as much due to the mandates. It is great to see baseball and softball back at both locations. Commissioner Sherer The basketball expansion is underway at Hagstrom King. Echoed the comments that the parks have been in great shape and well maintained this summer. The parks have been heavily used in this challenging year when many other activities have been canceled. It would be nice to have a method for City residents to determine when fields have been reserved. Chair Goldade Hagstrom King received some trees through a grant program. Wentworth and Valley parks are doing great. Thanks for all the work staff has done since March. 13. Adjourn Page 20 Motion Klepperich/Second Smith to adjourn the meeting at 8:20 PM AYES 7: NAYS 0 Minutes drafted by: Amanda Staple TimeSaver Off Site Secretarial, Inc Page 21 Page 22 DATE: September 15, 2020 TO: Mayor and City Council, City Administrator FROM: Meredith Lawrence, Recreation Program Coordinator SUBJECT: Acknowledge July Par 3 Financial Report INTRODUCTION The City Council is asked to acknowledge the July Par 3 Financial Report. BACKGROUND Attached is the July Par 3 Financial Report. During the month of July, the course had a total of 2,470 rounds of golf played. For the month of July, the Par 3 had a total revenue of $23,601 for greens fees. Recreation Programs had a loss of $3,445 due to refunds for camps that were not conducted due to COVID- 19. Including the month of June, the Par 3 had a year-to-date revenue total of $119,098. The course’s June expenditures totaled $17,128. The year-to-date total is $81,031. The course currently has positive operating revenue of $38,067 for the 2020 season. RECOMMENDATION Staff recommends that the Mendota Heights City Council acknowledge the July Par 3 Financial Report. ACTION REQUIRED If the Council concurs, it should, by motion acknowledge the July Par 3 Financial Report. Page 23 MONTHLY EXPENDITURE REPORT JULY 2020 MENDOTA HEIGHTS PAR 3 BUDGET TO ACTUAL REPORT July 2020 (58.33% OF YEAR) July REVENUES July YTD YTD YTD BUDGET 2020 2020 %2019 GREENS, LEAGUE & TOURN FEES $100,000 $27,044 $95,538 95.54%$63,621 RECREATION PROGRAMS $40,000 -$3,445 $23,507 58.77%$31,562 CONCESSIONS $19,000 $0 $0 0.00%$12,701 SUNDRY REVENUE $0 $2 $52 0.00%$137 INTEREST $450 $0 $0 0.00%$0 CAPITAL CONTRIBUTIONS $0 $0 $0 0.00%$0 PAR 3 FUND REVENUE TOTAL $159,450 $23,601 $119,098 74.69%$108,021 EXPENDITURES July YTD YTD YTD BUDGET 2020 2020 %2019 CLUBHOUSE SALARIES $34,300 $3,870 $7,572 22.08%$15,939 ADMINISTRATIVE SALARIES $23,601 $1,740 $13,104 55.52%$10,261 FICA/PERA $10,433 $840 $3,439 32.96%$3,720 MEDICAL INSURANCE $6,653 $554 $3,326 50.00%$3,881 U/E & W/C INSURANCE $2,500 $0 $3,258 130.32%$2,816 RENTALS $4,750 $557 $1,124 23.67%$2,480 UTILITIES $15,130 $773 $5,689 37.60%$6,053 PROFESSIONAL FEES - AUDIT $2,850 $1,269 $2,866 100.56%$1,577 PROF FEES - CONSULTING FEES $1,100 $0 $0 0.00%$531 PROF FEES - GROUNDS MGMT $3,000 $0 $0 0.00%$0 PROF FEES - GROUNDS WAGES $22,000 $2,495 $8,585 39.02%$8,574 PROF FEES - TREE MAINTENANCE $1,500 $0 $0 0.00%$0 ADVERTISING/NEWSLETTER $400 $0 $0 0.00%$235 LIABILITY/AUTO INSURANCE $4,200 $0 $3,893 92.70%$3,807 OPERATING COSTS/SUPPLIES $7,650 $542 $2,350 30.72%$3,500 FUEL $1,750 $153 $594 33.95%$797 REPAIRS & MAINTENANCE $35,350 $2,823 $20,516 58.04%$14,534 SUNDRY/DUES/MILEAGE/CLOTHING $4,150 $139 $775 18.67%$2,584 CONTINGENCY $0 $0 $0 0.00%$0 ONLINE REG & CREDIT CARD FEES $4,275 $1,372 $3,940 92.16%$2,476 PAR 3 EXPENDITURES TOTAL $185,592 $17,128 $81,031 43.66%$83,765 9/9/2020 Page 24 Request for City Council Action DATE: September 15, 2020 TO: Mayor, City Council, and City Administrator FROM: Dave Dreelan, Fire Chief SUBJECT: Firefighter Retirement—Rich Burrows INTRODUCTION The City Council is asked to accept the retirement notice of Rich Burrows as a firefighter with the Mendota Heights Fire Department. BACKGROUND Firefighter Rich Burrows has announced his retirement from the Fire Department effective September 22, 2020. Rich has been an active member of the department for the past 23 years. While Rich’s retirement will be formally recognized at the Department’s dinner in February, staff would like to acknowledge Rich’s contributions to the department and community and thank him for his time served. BUDGET IMPACT N/A ACTION RECOMMENDED Staff recommends that the City Council accept the retirement notice of Rich Burrows as a firefighter with the Mendota Heights Fire Department and formally thank Rich for his 23 years of service. ACTION REQUIRED If the Council concurs, it should, by motion, accept the retirement of Rich Burrows from the Mendota Heights Fire Department and formally thank Rich for his 23 years of service to the community as a Mendota Heights firefighter. Page 25 Page 26 Request for City Council Action MEETING DATE: September 15, 2020 TO: Mayor, City Council, and City Administrator FROM: Scott Goldenstein, Assistant Fire Chief SUBJECT: July 2020 Fire Synopsis COMMENT: Fire Calls In the month of July, the Mendota Heights Fire Department was paged out for 40 calls and they were located in the following areas: Mendota Heights 35 call(s) Lilydale 0 call(s) Mendota 1 call(s) Sunfish Lake 2 call(s) Other 2 call(s) The estimated losses for July were $92,000 in structure value and $65,800 in content value. Types of calls: Fires: 4 In July, the fire department responded to two structure fires in Mendota Heights as well as two vehicle fires in Mendota Heights. Medical/Extrication: 12 The department was requested to nine medical calls, two vehicle accidents with injuries, and one accident that involved extrication in July. Hazardous Situations: 4 One call was for a cut natural gas line as well as three power line issues. Service Calls: 1 MHFD responded for a person trapped in an elevator but upon arrival, the elevator had reset and allowed the occupants to exit. Good Intent: 3 In July we had three calls that were good intent (for gas smells), but upon investigation, no hazard was found. False Alarms: 8 The department responded to eight calls that were either fire alarms with no actual fire or were system malfunctions. Dispatched and Cancelled En route: 7 Seven times the fire department was paged out, but was cancelled before arriving on scene. Mutual/Auto Aid Requests: 2 The MHFD received one call for mutual aid to Inver Grove Heights although we were cancelled before arriving to the scene. Page 27 July Training: July 8 18:30 Hose & Streams: This drill worked on hose deployment for multi-story commercial and multi-dwelling unit applications where we do not have a standpipe to utilize. Mendota Heights does have several structures that would fall under this category. July 9 07:00 Hose & Streams: This drill worked on hose deployment for multi-story commercial and multi-dwelling unit applications where we do not have a standpipe to utilize. Mendota Heights does have several structures that would fall under this category. July 20 18:30 Company Operations: This was a training that was a refresher for engine pump operations as well as hose deployment. July 21 07:00 Company Operations: This was a training that was a refresher for engine pump operations as well as hose deployment. Page 28 Number of Calls 40 Total Calls for Year 198 FIRE ALARMS DISPATCHED:NUMBER STRUCTURE CONTENTS MISC.TOTALS TO DATE ACTUAL FIRES Structure - MH Commercial $0 Structure - MH Residential 1 $45,000 $55,000 $165,000 Structure - Contract Areas 1 $30,000 $10,000 $40,000 Cooking Fire - confined $0 Vehicle - MH 2 $17,000 $800 $21,300 Vehicle - Contract Areas $0 Grass/Brush/No Value MH Grass/Brush/No Value Contract TOTAL MONTHLY FIRE LOSSES Other Fire OVERPRESSURE RUPTURE $92,000 $65,800 $0 Excessive heat, scorch burns MEDICAL Emergency Medical/Assist 7 Vehicle accident w/injuries 2 Extrication 1 ALL FIRES, ALL AREAS (MONTH)$157,800 Medical, other 2 HAZARDOUS SITUATION MEND. HTS. ONLY STRUCT/CONTENTS $165,000 Spills/Leaks 3 Carbon Monoxide Incident MEND. HTS. ONLY MISCELLANEOUS $21,300 Power line down 1 Arcing, shorting 2 MEND. HTS. TOTAL LOSS TO DATE $226,300 Hazardous, Other SERVICE CALL Smoke or odor removal CONTRACT AREAS LOSS TO DATE $40,000 Assist Police or other agency Service Call, other GOOD INTENT Good Intent Dispatched & Cancelled 6 Current To Date Last Year Smoke Scare 35 141 170 HazMat release investigation 2 0 9 17 Good Intent, Other 1 8 6 FALSE ALARMS 2 13 8 False Alarm 1 2 27 18 Malfunction Total:40 198 219 Unintentional 6 False Alarm, other 1 FIRE MARSHAL'S TIME FOR MONTH MUTUAL AID 2 INSPECTIONS Total Calls 40 INVESTIGATIONS RE-INSPECTION WORK PERFORMED Hours To Date Last Year MEETINGS FIRE CALLS 672.5 3372.25 3474.5 MEETINGS 97 566 493 ADMINISTRATION TRAINING 185.5 1397.5 2302 SPECIAL ACTIVITY 20 379 264.5 PLAN REVIEW/TRAINING FIRE MARSHAL 0 97 TOTAL:0 TOTALS 975 5714.75 6631 REMARKS: Lilydale Mendota Sunfish Lake Other MENDOTA HEIGHTS FIRE DEPARTMENT JULY 2020 MONTHLY REPORT FIRE LOSS TOTALS LOCATION OF FIRE ALARMS Mendota Heights Page 29 Page 30 DATE: September 15, 2020 TO: Mayor, City Council and City Administrator FROM: Kristen Schabacker, Finance Director SUBJECT: 2020 Bond Issue COMMENT: INTRODUCTION The Council is asked to authorize the sale of $3,665,000 Bonds to finance the 2020 Marie Avenue Street Project and the refunding of the 2012A Bond Issue. The refunding issue accounts for $2,040,000 of the bonds to be issued. The City will realize approximately $130,000 of savings by refunding the 2012 issue. BACKGROUND The City has ordered the Marie Avenue improvement project to be completed this construction season. Tonight we will begin the process to issue bonds to finance these projects. For this project we will be issuing general obligation bonds. These bonds will require a public hearing on the tax abatement component of these bonds. This is required because of the small percentage of assessments and the total costs associated with this project. I have contacted Ehlers & Associates to assist us with the issuance of these bonds. The schedule is as follows: Pre-Sale Review by Council September 15, 2020 Distribute Official Statement Week of October 5st, 2020 Public Hearing on Tax Abatement October 7, 2020 Conference with Rating Agency Week of October 12th, 2020 Award Sale of Bonds October 20, 2020 Estimated Closing Date November 11, 2020 Ehlers has prepared a Pre-Sale report which is attached for your review. The City will be issuing $3,665,000 General Obligation Improvement Bonds for the street project with a term of 10 years. The assessment interest rate will be at 2% over the true interest costs of the bonds issued. BUDGET IMPACT The bonds will be paid with a combination of special assessments and an amount levied each year for the annual bond payments. The refunding of the 2012 bond issue will result in an approximate savings of $130,000 over the remaining term of the bonds. RECOMMENDATION I recommend that council pass a motion to adopt Resolution 2020-59 ”RESOLUTION PROVIDING FOR THE SALE OF $3,665,000 GENERAL OBLIGATION BONDS, SERIES 2020A.” 5f.Page 31 Resolution No. 2020-59 Councilmember _________________ introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $3,665,000 General Obligation Bonds, Series 2020A A. WHEREAS, the City Council of the City of Mendota Heights, Minnesota has heretofore determined that it is necessary and expedient to issue the City's $3,665,000 General Obligation Bonds, Series 2020A (the "Bonds"), to finance the reconstruction of Marie Avenue from Dodd Road to Lexington Avenue and to provide for a current refunding of the 2012A GO Improvement Bonds in the City; and B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent municipal advisor for the Bonds in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota, as follows: 1. Authorization; Findings. The City Council hereby authorizes Ehlers to assist the City for the sale of the Bonds. 2. Meeting; Proposal Opening. The City Council shall meet at 6:00 p.m. on October 20, 2020, for the purpose of considering proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by City Council Member _______________________ and, after full discussion thereof and upon a vote being taken thereon, the following City Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this 15th day September, 2020 _____________________________________________ City Clerk Page 32 September 15, 2020 Pre-Sale Report for City of Mendota Heights, Minnesota $3,665,000 General Obligation Bonds, Series 2020A               Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, MN 55113 Advisors: Stacie Kvilvang, Senior Municipal Advisor Jason Aarsvold, Senior Municipal Advisor Keith Dahl, Financial Specialist        BUILDING COMMUNITIES. IT’S WHAT WE DO. Page 33 Proposed Issue: $3,665,000 General Obligation Bonds, Series 2020A Purposes: The proposed issue includes financing for the following purposes: Finance the road reconstruction of Marie Avenue from Dodd Road to Lexington Avenue and current refunding of the 2012A Improvement Bonds  Current Refunding 2012A Improvement Bonds Interest rates on the obligations proposed to be refunded are 2% to 2.7%. Marie Avenue portion The refunding is expected to reduce debt service expense by approximately $31,000 over 11 years. The Net Present Value Benefit of the refunding is estimated to be approximately $26,000, equal to 5.835% of the refunded principal. Lemay Lake portion The refunding is expected to reduce debt service expense by approximately $67,000 over 11 years. The Net Present Value Benefit of the refunding is estimated to be approximately $61,500, equal to 6.095% of the refunded principal. Diane/Mendota Heights Road portion The refunding is expected to reduce debt service expense by approximately $32,400 over 11 years. The Net Present Value Benefit of the refunding is estimated to be approximately $29,000, equal to 5.470% of the refunded principal. Debt service will be paid from special assessments and taxes. This refunding is considered to be a Current Refunding as the obligations being refunded are either callable (pre-payable) now, or will be within 90 days of the date of issue of the new Bonds.  Marie Avenue Reconstruction (Dodd Road to Lexington Avenue) - Tax Abatement portion. Debt service will be paid from $313,000 in special assessments levied against benefitting properties and the remainder will be paid with property taxes abated from specific parcels in the area. Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters:  469.1813 and 475 EXECUTIVE SUMMARY OF PROPOSED DEBT Page 34 Under the Tax Abatement Authority, the City is required to hold a public hearing on the abatement and the public purpose it serves. The hearing is set for October 7, 2020. In addition, the amount of property taxes abated in any year for the Bonds, together with any outstanding annual abatements, may not exceed 10% of the City's net tax capacity or $200,000, whichever is greater. The proposed annual debt service is expected to be $175,000 which is below either threshold. The Bonds will be general obligations of the City for which its full faith, credit and taxing powers are pledged. Term/Call Feature: The Bonds are being issued for a term of 12 years. Principal on the Bonds will be due on February 1 in the years 2022 through 2032. Interest is payable every six months beginning August 1, 2021. The Bonds will be subject to prepayment at the discretion of the City on February 1, 2029 or any date thereafter. Bank Qualification: Because the City is expecting to issue no more than $10,000,000 in tax exempt debt during the calendar year, the City will be able to designate the Bonds as “bank qualified” obligations. Bank qualified status broadens the market for the Bonds, which can result in lower interest rates. Rating: The City’s most recent bond issues were rated by Standard & Poor’s. The current ratings on those bonds are “AAA”. The City will request a new rating for the Bonds. Basis for Recommendation: Based on our knowledge of your situation, your objectives communicated to us, our advisory relationship as well as characteristics of various municipal financing options, we are recommending the issuance of general obligation bonds as a suitable financing option for the following reasons: - This is a viable option available to finance these types of project under State law - This is the most overall cost-effective option that still maintains future flexibility for the repayment of debt Method of Sale/Placement: We will solicit competitive bids for the purchase of the Bonds from underwriters and banks. We will include an allowance for discount bidding in the terms of the issue. The discount is treated as an interest item and provides the underwriter with all or a portion of their compensation in the transaction. Page 35 If the Bonds are purchased at a price greater than the minimum bid amount (maximum discount), the unused allowance may be used to reduce your borrowing amount. Premium Pricing: In some cases, investors in municipal bonds prefer “premium” pricing structures. A premium is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds the yield to the investor, resulting in a price paid that is greater than the face value of the bonds. The sum of the amounts paid in excess of face value is considered “reoffering premium.” The underwriter of the bonds will retain a portion of this reoffering premium as their compensation (or “discount”) but will pay the remainder of the premium to the City. The amount of the premium varies, but it is not uncommon to see premiums for new issues in the range of 2.00% to 10.00% of the face amount of the issue. This means that an issuer with a $2,000,000 offering may receive bids that result in proceeds of $2,040,000 to $2,200,000. For this issue of Bonds we have been directed to use the net premium to reduce the size of the issue. The resulting adjustments may slightly change the true interest cost of the issue, either up or down. The amount of premium can be restricted in the bid specifications. Restrictions on premium may result in fewer bids, but may also eliminate large adjustments on the day of sale and unintended impacts with respect to debt service payment. Ehlers will identify appropriate premium restrictions for the Bonds intended to achieve the City’s objectives for this financing. Review of Existing Debt: We have reviewed all outstanding indebtedness for the City and find that, other than the obligations proposed to be refunded by the Bonds, there are no other refunding opportunities at this time. We will continue to monitor the market and the call dates for the City’s outstanding debt and will alert you to any future refunding opportunities. Continuing Disclosure: Because the City has more than $10,000,000 in outstanding debt (including this issue) and this issue is over $1,000,000, the City will be agreeing to provide certain updated Annual Financial Information and its Audited Financial Statement annually, as well as providing notices of the occurrence of certain reportable events to the Municipal Securities Rulemaking Board (the “MSRB”), as required by rules of the Securities and Exchange Commission (SEC). The City is already obligated to provide such reports for its existing bonds, and has contracted with Ehlers to prepare and file the reports. Arbitrage Monitoring: Because the Bonds tax-exempt obligations, the City must ensure compliance with certain Internal Revenue Service (IRS) rules throughout the life of the issue. These rules apply to all gross proceeds of the issue, including initial bond proceeds and investment earnings in construction, escrow, debt service, and any reserve funds. How issuers spend bond proceeds and how they track interest earnings on funds (arbitrage/yield restriction compliance) are common subjects of IRS inquiries. Your specific responsibilities will be defined in the Arbitrage Page 36 Certificate prepared by your Bond Attorney and provided at closing. You have retained Ehlers to assist you in complying with these rules. Risk Factors: Special Assessments: We have assumed $109,725 in pre-paid special assessments for the new money portion (tax abatement) of the Bonds. We have assumed that the remaining assessments and assessments on the existing bonds being refunded, will be levied as projected. If the City receives a significant amount of pre-paid assessments or does not levy the assessments, it may need to increase the levy portion of the debt service to make up for lower interest earnings than the expected assessment interest rate. Current Refunding: The Bonds are being issued to finance a current refunding of prior City debt obligations. Those prior debt obligations are “callable” on or after February 1, 2021. The new Bonds will not be pre-payable until February 1, 2029. This refunding is being undertaken based in part on an assumption that the City does not expect to pre-pay off this debt prior to the new call date and that market conditions warrant the refunding at this time. Other Service Providers: This debt issuance will require the engagement of other public finance service providers. This section identifies those other service providers, so Ehlers can coordinate their engagement on your behalf. Where you have previously used a particular firm to provide a service, we have assumed that you will continue that relationship. For services you have not previously required, we have identified a service provider. Fees charged by these service providers will be paid from proceeds of the obligation, unless you notify us that you wish to pay them from other sources. Our pre-sale bond sizing includes a good faith estimate of these fees, but the final fees may vary. If you have any questions pertaining to the identified service providers or their role, or if you would like to use a different service provider for any of the listed services please contact us. Bond Counsel: Taft Stettinius & Hollister LLP Paying Agent: Bond Trust Services Corporation Rating Agency: Standard & Poor's Global Ratings (S&P) Summary: The decisions to be made by the City Council are as follows:  Accept or modify the finance assumptions described in this report  Adopt the resolution attached to this report. This presale report summarizes our understanding of the City’s objectives for the structure and terms of this financing as of this date. As additional facts become known or capital markets conditions change, we may need to modify the structure and/or terms of this financing to achieve results consistent with the City’s objectives. Page 37 Pre-Sale Review by City Council: September 15, 2020 Distribute Official Statement: Week of October 5, 2020 Public Hearing on Tax Abatement October 7, 2020 Due Diligence Call to review Official Statement: Week of October 12, 2020 Conference with Rating Agency: Week of October 12, 2020 City Council Meeting to Award Sale of the Bonds: October 20, 2020 Estimated Closing Date: November 11, 2020 Redemption Date for Bonds Being Refunded: February 1, 2021 Attachments Estimated Sources and Uses of Funds Estimated Proposed Debt Service Schedule Estimated Debt Service Comparison Resolution Authorizing Ehlers to Proceed with Bond Sale CONTACTS Stacie Kvilvang, Senior Municipal Advisor (651) 697-8506 Jason Aarsvold, Senior Municipal Advisor (651) 697-8512 Keith Dahl, Financial Specialist (651) 697-8595 Emily Wilkie, Senior Public Finance Analyst (651) 697-8588 Alicia Gage, Senior Financial Analyst (651) 697-8551 The Preliminary Official Statement for this financing will be sent to the City Council at their home or email address for review prior to the sale date. PROPOSED DEBT ISSUANCE SCHEDULE EHLERS’ CONTACTS Page 38 Mendota Heights, Minnesota $3,665,000 General Obligation Bonds, Series 2020A Issue Summary - Current Refunding 2012A & New Money Assumes Current Market BQ AAA Rates plus 25bps Total Issue Sources And Uses Dated 11/10/2020 | Delivered 11/10/2020 Tax Abatement Cur Ref 2012A Imp Bds - Marie Ave Cur Ref 2012A Imp Bds - Lemay Lake Cur Ref 2012A Imp Bds - Diane/Mendota Hgts Rd Issue Summary Sources Of Funds Par Amount of Bonds $1,625,000.00 $450,000.00 $1,040,000.00 $550,000.00 $3,665,000.00 Prepaid Assessments 109,725.00 ---109,725.00 MSA Funds 1,366,502.00 ---1,366,502.00 St. Paul Reg Water 207,588.00 ---207,588.00 Dakota County 230,784.00 ---230,784.00 Storm Water Utility 282,118.00 ---282,118.00 Total Sources $3,821,717.00 $450,000.00 $1,040,000.00 $550,000.00 $5,861,717.00 Uses Of Funds Total Underwriter's Discount (1.200%)19,500.00 5,400.00 12,480.00 6,600.00 43,980.00 Costs of Issuance 27,489.79 7,612.54 17,593.45 9,304.22 62,000.00 Construction Project Costs 3,340,819.00 ---3,340,819.00 Deposit to Current Refunding Fund -440,000.00 1,010,000.00 535,000.00 1,985,000.00 Indirect Project Costs 429,683.21 ---429,683.21 Rounding Amount 4,225.00 (3,012.54)(73.45)(904.22)234.79 Total Uses $3,821,717.00 $450,000.00 $1,040,000.00 $550,000.00 $5,861,717.00 Series 2020A GO Tax Abate | Issue Summary | 9/ 9/2020 | 2:08 PM Page 39 Mendota Heights, Minnesota $3,665,000 General Obligation Bonds, Series 2020A Issue Summary - Current Refunding 2012A & New Money Assumes Current Market BQ AAA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 11/10/2020 ----- 08/01/2021 --19,225.19 19,225.19 - 02/01/2022 205,000.00 0.400%13,258.75 218,258.75 237,483.94 08/01/2022 --12,848.75 12,848.75 - 02/01/2023 395,000.00 0.400%12,848.75 407,848.75 420,697.50 08/01/2023 --12,058.75 12,058.75 - 02/01/2024 355,000.00 0.450%12,058.75 367,058.75 379,117.50 08/01/2024 --11,260.00 11,260.00 - 02/01/2025 350,000.00 0.500%11,260.00 361,260.00 372,520.00 08/01/2025 --10,385.00 10,385.00 - 02/01/2026 355,000.00 0.600%10,385.00 365,385.00 375,770.00 08/01/2026 --9,320.00 9,320.00 - 02/01/2027 360,000.00 0.700%9,320.00 369,320.00 378,640.00 08/01/2027 --8,060.00 8,060.00 - 02/01/2028 360,000.00 0.800%8,060.00 368,060.00 376,120.00 08/01/2028 --6,620.00 6,620.00 - 02/01/2029 360,000.00 0.900%6,620.00 366,620.00 373,240.00 08/01/2029 --5,000.00 5,000.00 - 02/01/2030 365,000.00 1.000%5,000.00 370,000.00 375,000.00 08/01/2030 --3,175.00 3,175.00 - 02/01/2031 370,000.00 1.100%3,175.00 373,175.00 376,350.00 08/01/2031 --1,140.00 1,140.00 - 02/01/2032 190,000.00 1.200%1,140.00 191,140.00 192,280.00 Total $3,665,000.00 -$192,218.94 $3,857,218.94 - Yield Statistics Bond Year Dollars $22,694.63 Average Life 6.192 Years Average Coupon 0.8469800% Net Interest Cost (NIC)1.0407704% True Interest Cost (TIC)1.0457029% Bond Yield for Arbitrage Purposes 0.8442611% All Inclusive Cost (AIC)1.3352674% IRS Form 8038 Net Interest Cost 0.8469800% Weighted Average Maturity 6.192 Years Series 2020A GO Tax Abate | Issue Summary | 9/ 9/2020 | 2:08 PM Page 40 Mendota Heights, Minnesota $3,665,000 General Obligation Bonds, Series 2020A Issue Summary - Current Refunding 2012A & New Money Assumes Current Market BQ AAA Rates plus 25bps Detail Costs Of Issuance Dated 11/10/2020 | Delivered 11/10/2020 COSTS OF ISSUANCE DETAIL Municipal Advisor $30,500.00 Abatement Fee $4,000.00 Bond Counsel $12,500.00 Rating Agency Fee $14,000.00 Miscellaneous $1,000.00 TOTAL $62,000.00 Series 2020A GO Tax Abate | Issue Summary | 9/ 9/2020 | 2:08 PM Page 41 Mendota Heights, Minnesota $3,665,000 General Obligation Bonds, Series 2020A Issue Summary - Current Refunding 2012A & New Money Assumes Current Market BQ AAA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I 105% of Total Assessments Tax Abatement Levy/(Surplus) Net Levy/(Surplus) 02/01/2021 -------- 02/01/2022 205,000.00 0.400%32,483.94 237,483.94 249,358.14 26,490.75 (11,486.64)234,354.03 02/01/2023 395,000.00 0.400%25,697.50 420,697.50 441,732.38 25,879.42 175,368.83 240,484.13 02/01/2024 355,000.00 0.450%24,117.50 379,117.50 398,073.38 25,268.10 175,224.15 197,581.13 02/01/2025 350,000.00 0.500%22,520.00 372,520.00 391,146.00 24,656.78 174,984.97 191,504.25 02/01/2026 355,000.00 0.600%20,770.00 375,770.00 394,558.50 24,045.46 174,651.29 195,861.75 02/01/2027 360,000.00 0.700%18,640.00 378,640.00 397,572.00 23,434.12 174,128.63 200,009.25 02/01/2028 360,000.00 0.800%16,120.00 376,120.00 394,926.00 22,822.80 173,416.95 198,686.25 02/01/2029 360,000.00 0.900%13,240.00 373,240.00 391,902.00 22,211.48 172,516.27 197,174.25 02/01/2030 365,000.00 1.000%10,000.00 375,000.00 393,750.00 21,600.16 171,426.59 200,723.25 02/01/2031 370,000.00 1.100%6,350.00 376,350.00 395,167.50 20,988.82 175,397.93 198,780.75 02/01/2032 190,000.00 1.200%2,280.00 192,280.00 201,894.00 --201,894.00 Total $3,665,000.00 -$192,218.94 $3,857,218.94 $4,050,079.89 $237,397.89 $1,555,628.97 $2,257,053.03 Significant Dates Dated 11/10/2020 First Coupon Date 8/01/2021 Yield Statistics Bond Year Dollars $22,694.63 Average Life 6.192 Years Average Coupon 0.8469800% Net Interest Cost (NIC)1.0407704% True Interest Cost (TIC)1.0457029% Bond Yield for Arbitrage Purposes 0.8442611% All Inclusive Cost (AIC)1.3352674% Series 2020A GO Tax Abate | Issue Summary | 9/ 9/2020 | 2:08 PM Page 42 Mendota Heights, Minnesota $1,625,000 General Obligation Bonds, Series 2020A Tax Abatement Assumes Current Market BQ AAA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 11/10/2020 ----- 08/01/2021 --8,457.13 8,457.13 - 02/01/2022 --5,832.50 5,832.50 14,289.63 08/01/2022 --5,832.50 5,832.50 - 02/01/2023 180,000.00 0.400%5,832.50 185,832.50 191,665.00 08/01/2023 --5,472.50 5,472.50 - 02/01/2024 180,000.00 0.450%5,472.50 185,472.50 190,945.00 08/01/2024 --5,067.50 5,067.50 - 02/01/2025 180,000.00 0.500%5,067.50 185,067.50 190,135.00 08/01/2025 --4,617.50 4,617.50 - 02/01/2026 180,000.00 0.600%4,617.50 184,617.50 189,235.00 08/01/2026 --4,077.50 4,077.50 - 02/01/2027 180,000.00 0.700%4,077.50 184,077.50 188,155.00 08/01/2027 --3,447.50 3,447.50 - 02/01/2028 180,000.00 0.800%3,447.50 183,447.50 186,895.00 08/01/2028 --2,727.50 2,727.50 - 02/01/2029 180,000.00 0.900%2,727.50 182,727.50 185,455.00 08/01/2029 --1,917.50 1,917.50 - 02/01/2030 180,000.00 1.000%1,917.50 181,917.50 183,835.00 08/01/2030 --1,017.50 1,017.50 - 02/01/2031 185,000.00 1.100%1,017.50 186,017.50 187,035.00 Total $1,625,000.00 -$82,644.63 $1,707,644.63 - Yield Statistics Bond Year Dollars $10,135.63 Average Life 6.237 Years Average Coupon 0.8153876% Net Interest Cost (NIC)1.0077783% True Interest Cost (TIC)1.0127468% Bond Yield for Arbitrage Purposes 0.8442611% All Inclusive Cost (AIC)1.2993285% IRS Form 8038 Net Interest Cost 0.8153876% Weighted Average Maturity 6.237 Years Series 2020A GO Tax Abate | Tax Abatement | 9/ 9/2020 | 2:08 PM Page 43 Mendota Heights, Minnesota $1,625,000 General Obligation Bonds, Series 2020A Tax Abatement Assumes Current Market BQ AAA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I 105% of Total Assessments Tax Abatement Levy/(Surplus) 02/01/2021 ------- 02/01/2022 --14,289.63 14,289.63 15,004.11 26,490.75 (11,486.64) 02/01/2023 180,000.00 0.400%11,665.00 191,665.00 201,248.25 25,879.42 175,368.83 02/01/2024 180,000.00 0.450%10,945.00 190,945.00 200,492.25 25,268.10 175,224.15 02/01/2025 180,000.00 0.500%10,135.00 190,135.00 199,641.75 24,656.78 174,984.97 02/01/2026 180,000.00 0.600%9,235.00 189,235.00 198,696.75 24,045.46 174,651.29 02/01/2027 180,000.00 0.700%8,155.00 188,155.00 197,562.75 23,434.12 174,128.63 02/01/2028 180,000.00 0.800%6,895.00 186,895.00 196,239.75 22,822.80 173,416.95 02/01/2029 180,000.00 0.900%5,455.00 185,455.00 194,727.75 22,211.48 172,516.27 02/01/2030 180,000.00 1.000%3,835.00 183,835.00 193,026.75 21,600.16 171,426.59 02/01/2031 185,000.00 1.100%2,035.00 187,035.00 196,386.75 20,988.82 175,397.93 Total $1,625,000.00 -$82,644.63 $1,707,644.63 $1,793,026.86 $237,397.89 $1,555,628.97 Significant Dates Dated 11/10/2020 First Coupon Date 8/01/2021 Yield Statistics Bond Year Dollars $10,135.63 Average Life 6.237 Years Average Coupon 0.8153876% Net Interest Cost (NIC)1.0077783% True Interest Cost (TIC)1.0127468% Bond Yield for Arbitrage Purposes 0.8442611% All Inclusive Cost (AIC)1.2993285% Series 2020A GO Tax Abate | Tax Abatement | 9/ 9/2020 | 2:08 PM Page 44 Mendota Heights, Minnesota $450,000 General Obligation Bonds, Series 2020A Cur Ref 2012A Imp Bds - Marie Ave Assumes Current Market BQ AAA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 11/10/2020 ----- 08/01/2021 --2,383.44 2,383.44 - 02/01/2022 45,000.00 0.400%1,643.75 46,643.75 49,027.19 08/01/2022 --1,553.75 1,553.75 - 02/01/2023 50,000.00 0.400%1,553.75 51,553.75 53,107.50 08/01/2023 --1,453.75 1,453.75 - 02/01/2024 35,000.00 0.450%1,453.75 36,453.75 37,907.50 08/01/2024 --1,375.00 1,375.00 - 02/01/2025 40,000.00 0.500%1,375.00 41,375.00 42,750.00 08/01/2025 --1,275.00 1,275.00 - 02/01/2026 35,000.00 0.600%1,275.00 36,275.00 37,550.00 08/01/2026 --1,170.00 1,170.00 - 02/01/2027 40,000.00 0.700%1,170.00 41,170.00 42,340.00 08/01/2027 --1,030.00 1,030.00 - 02/01/2028 40,000.00 0.800%1,030.00 41,030.00 42,060.00 08/01/2028 --870.00 870.00 - 02/01/2029 40,000.00 0.900%870.00 40,870.00 41,740.00 08/01/2029 --690.00 690.00 - 02/01/2030 40,000.00 1.000%690.00 40,690.00 41,380.00 08/01/2030 --490.00 490.00 - 02/01/2031 40,000.00 1.100%490.00 40,490.00 40,980.00 08/01/2031 --270.00 270.00 - 02/01/2032 45,000.00 1.200%270.00 45,270.00 45,540.00 Total $450,000.00 -$24,382.19 $474,382.19 - Yield Statistics Bond Year Dollars $2,781.25 Average Life 6.181 Years Average Coupon 0.8766630% Net Interest Cost (NIC)1.0708203% True Interest Cost (TIC)1.0757830% Bond Yield for Arbitrage Purposes 0.8442611% All Inclusive Cost (AIC)1.3667704% IRS Form 8038 Net Interest Cost 0.8766630% Weighted Average Maturity 6.181 Years Series 2020A GO Tax Abate | Cur Ref 2012A Imp Bds - M | 9/ 9/2020 | 2:08 PM Page 45 Mendota Heights, Minnesota $450,000 General Obligation Bonds, Series 2020A Cur Ref 2012A Imp Bds - Marie Ave Assumes Current Market BQ AAA Rates plus 25bps Debt Service Comparison Date Total P+I Net New D/S Old Net D/S Savings 02/01/2021 ---- 02/01/2022 49,027.19 49,027.19 50,145.00 1,117.81 02/01/2023 53,107.50 53,107.50 54,345.00 1,237.50 02/01/2024 37,907.50 37,907.50 43,445.00 5,537.50 02/01/2025 42,750.00 42,750.00 47,745.00 4,995.00 02/01/2026 37,550.00 37,550.00 41,945.00 4,395.00 02/01/2027 42,340.00 42,340.00 46,175.00 3,835.00 02/01/2028 42,060.00 42,060.00 45,295.00 3,235.00 02/01/2029 41,740.00 41,740.00 44,295.00 2,555.00 02/01/2030 41,380.00 41,380.00 43,295.00 1,915.00 02/01/2031 40,980.00 40,980.00 42,295.00 1,315.00 02/01/2032 45,540.00 45,540.00 46,215.00 675.00 Total $474,382.19 $474,382.19 $505,195.00 $30,812.81 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings.....................28,688.02 Net PV Cashflow Savings @ 1.367%(AIC)............28,688.02 Contingency or Rounding Amount....................(3,012.54) Net Present Value Benefit $25,675.48 Net PV Benefit / $480,264.61 PV Refunded Debt Service 5.346% Net PV Benefit / $440,000 Refunded Principal...5.835% Net PV Benefit / $450,000 Refunding Principal..5.706% Refunding Bond Information Refunding Dated Date 11/10/2020 Refunding Delivery Date 11/10/2020 Series 2020A GO Tax Abate | Cur Ref 2012A Imp Bds - M | 9/ 9/2020 | 2:08 PM Page 46 Mendota Heights, Minnesota $450,000 General Obligation Bonds, Series 2020A Cur Ref 2012A Imp Bds - Marie Ave Assumes Current Market BQ AAA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I 105% Overlevy 02/01/2021 ----- 02/01/2022 45,000.00 0.400%4,027.19 49,027.19 51,478.55 02/01/2023 50,000.00 0.400%3,107.50 53,107.50 55,762.88 02/01/2024 35,000.00 0.450%2,907.50 37,907.50 39,802.88 02/01/2025 40,000.00 0.500%2,750.00 42,750.00 44,887.50 02/01/2026 35,000.00 0.600%2,550.00 37,550.00 39,427.50 02/01/2027 40,000.00 0.700%2,340.00 42,340.00 44,457.00 02/01/2028 40,000.00 0.800%2,060.00 42,060.00 44,163.00 02/01/2029 40,000.00 0.900%1,740.00 41,740.00 43,827.00 02/01/2030 40,000.00 1.000%1,380.00 41,380.00 43,449.00 02/01/2031 40,000.00 1.100%980.00 40,980.00 43,029.00 02/01/2032 45,000.00 1.200%540.00 45,540.00 47,817.00 Total $450,000.00 -$24,382.19 $474,382.19 $498,101.30 Significant Dates Dated 11/10/2020 First Coupon Date 8/01/2021 Yield Statistics Bond Year Dollars $2,781.25 Average Life 6.181 Years Average Coupon 0.8766630% Net Interest Cost (NIC)1.0708203% True Interest Cost (TIC)1.0757830% Bond Yield for Arbitrage Purposes 0.8442611% All Inclusive Cost (AIC)1.3667704% IRS Form 8038 Net Interest Cost 0.8766630% Weighted Average Maturity 6.181 Years Series 2020A GO Tax Abate | Cur Ref 2012A Imp Bds - M | 9/ 9/2020 | 2:08 PM Page 47 Mendota Heights, Minnesota $1,040,000 General Obligation Bonds, Series 2020A Cur Ref 2012A Imp Bds - Lemay Lake Assumes Current Market BQ AAA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 11/10/2020 ----- 08/01/2021 --5,548.06 5,548.06 - 02/01/2022 90,000.00 0.400%3,826.25 93,826.25 99,374.31 08/01/2022 --3,646.25 3,646.25 - 02/01/2023 95,000.00 0.400%3,646.25 98,646.25 102,292.50 08/01/2023 --3,456.25 3,456.25 - 02/01/2024 95,000.00 0.450%3,456.25 98,456.25 101,912.50 08/01/2024 --3,242.50 3,242.50 - 02/01/2025 90,000.00 0.500%3,242.50 93,242.50 96,485.00 08/01/2025 --3,017.50 3,017.50 - 02/01/2026 95,000.00 0.600%3,017.50 98,017.50 101,035.00 08/01/2026 --2,732.50 2,732.50 - 02/01/2027 95,000.00 0.700%2,732.50 97,732.50 100,465.00 08/01/2027 --2,400.00 2,400.00 - 02/01/2028 95,000.00 0.800%2,400.00 97,400.00 99,800.00 08/01/2028 --2,020.00 2,020.00 - 02/01/2029 95,000.00 0.900%2,020.00 97,020.00 99,040.00 08/01/2029 --1,592.50 1,592.50 - 02/01/2030 100,000.00 1.000%1,592.50 101,592.50 103,185.00 08/01/2030 --1,092.50 1,092.50 - 02/01/2031 95,000.00 1.100%1,092.50 96,092.50 97,185.00 08/01/2031 --570.00 570.00 - 02/01/2032 95,000.00 1.200%570.00 95,570.00 96,140.00 Total $1,040,000.00 -$56,914.31 $1,096,914.31 - Yield Statistics Bond Year Dollars $6,524.00 Average Life 6.273 Years Average Coupon 0.8723837% Net Interest Cost (NIC)1.0636773% True Interest Cost (TIC)1.0686033% Bond Yield for Arbitrage Purposes 0.8442611% All Inclusive Cost (AIC)1.3551030% IRS Form 8038 Net Interest Cost 0.8723837% Weighted Average Maturity 6.273 Years Series 2020A GO Tax Abate | Cur Ref 2012A Imp Bds - L | 9/ 9/2020 | 2:08 PM Page 48 Mendota Heights, Minnesota $1,040,000 General Obligation Bonds, Series 2020A Cur Ref 2012A Imp Bds - Lemay Lake Assumes Current Market BQ AAA Rates plus 25bps Debt Service Comparison Date Total P+I Net New D/S Old Net D/S Savings 02/01/2021 ---- 02/01/2022 99,374.31 99,374.31 103,410.00 4,035.69 02/01/2023 102,292.50 102,292.50 106,810.00 4,517.50 02/01/2024 101,912.50 101,912.50 110,110.00 8,197.50 02/01/2025 96,485.00 96,485.00 103,310.00 6,825.00 02/01/2026 101,035.00 101,035.00 106,610.00 5,575.00 02/01/2027 100,465.00 100,465.00 104,630.00 4,165.00 02/01/2028 99,800.00 99,800.00 107,650.00 7,850.00 02/01/2029 99,040.00 99,040.00 105,275.00 6,235.00 02/01/2030 103,185.00 103,185.00 107,900.00 4,715.00 02/01/2031 97,185.00 97,185.00 105,400.00 8,215.00 02/01/2032 96,140.00 96,140.00 102,700.00 6,560.00 Total $1,096,914.31 $1,096,914.31 $1,163,805.00 $66,890.69 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings.....................61,629.68 Net PV Cashflow Savings @ 1.355%(AIC)............61,629.68 Contingency or Rounding Amount....................(73.45) Net Present Value Benefit $61,556.23 Net PV Benefit / $1,105,130.55 PV Refunded Debt Service 5.570% Net PV Benefit / $1,010,000 Refunded Principal...6.095% Net PV Benefit / $1,040,000 Refunding Principal..5.919% Refunding Bond Information Refunding Dated Date 11/10/2020 Refunding Delivery Date 11/10/2020 Series 2020A GO Tax Abate | Cur Ref 2012A Imp Bds - L | 9/ 9/2020 | 2:08 PM Page 49 Mendota Heights, Minnesota $1,040,000 General Obligation Bonds, Series 2020A Cur Ref 2012A Imp Bds - Lemay Lake Assumes Current Market BQ AAA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I 105% Overlevy 02/01/2021 ----- 02/01/2022 90,000.00 0.400%9,374.31 99,374.31 104,343.03 02/01/2023 95,000.00 0.400%7,292.50 102,292.50 107,407.13 02/01/2024 95,000.00 0.450%6,912.50 101,912.50 107,008.13 02/01/2025 90,000.00 0.500%6,485.00 96,485.00 101,309.25 02/01/2026 95,000.00 0.600%6,035.00 101,035.00 106,086.75 02/01/2027 95,000.00 0.700%5,465.00 100,465.00 105,488.25 02/01/2028 95,000.00 0.800%4,800.00 99,800.00 104,790.00 02/01/2029 95,000.00 0.900%4,040.00 99,040.00 103,992.00 02/01/2030 100,000.00 1.000%3,185.00 103,185.00 108,344.25 02/01/2031 95,000.00 1.100%2,185.00 97,185.00 102,044.25 02/01/2032 95,000.00 1.200%1,140.00 96,140.00 100,947.00 Total $1,040,000.00 -$56,914.31 $1,096,914.31 $1,151,760.03 Significant Dates Dated 11/10/2020 First Coupon Date 8/01/2021 Yield Statistics Bond Year Dollars $6,524.00 Average Life 6.273 Years Average Coupon 0.8723837% Net Interest Cost (NIC)1.0636773% True Interest Cost (TIC)1.0686033% Bond Yield for Arbitrage Purposes 0.8442611% All Inclusive Cost (AIC)1.3551030% IRS Form 8038 Net Interest Cost 0.8723837% Weighted Average Maturity 6.273 Years Series 2020A GO Tax Abate | Cur Ref 2012A Imp Bds - L | 9/ 9/2020 | 2:08 PM Page 50 Mendota Heights, Minnesota $550,000 General Obligation Bonds, Series 2020A Cur Ref 2012A Imp Bds - Diane/Mendota Hgts Rd Assumes Current Market BQ AAA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 11/10/2020 ----- 08/01/2021 --2,836.56 2,836.56 - 02/01/2022 70,000.00 0.400%1,956.25 71,956.25 74,792.81 08/01/2022 --1,816.25 1,816.25 - 02/01/2023 70,000.00 0.400%1,816.25 71,816.25 73,632.50 08/01/2023 --1,676.25 1,676.25 - 02/01/2024 45,000.00 0.450%1,676.25 46,676.25 48,352.50 08/01/2024 --1,575.00 1,575.00 - 02/01/2025 40,000.00 0.500%1,575.00 41,575.00 43,150.00 08/01/2025 --1,475.00 1,475.00 - 02/01/2026 45,000.00 0.600%1,475.00 46,475.00 47,950.00 08/01/2026 --1,340.00 1,340.00 - 02/01/2027 45,000.00 0.700%1,340.00 46,340.00 47,680.00 08/01/2027 --1,182.50 1,182.50 - 02/01/2028 45,000.00 0.800%1,182.50 46,182.50 47,365.00 08/01/2028 --1,002.50 1,002.50 - 02/01/2029 45,000.00 0.900%1,002.50 46,002.50 47,005.00 08/01/2029 --800.00 800.00 - 02/01/2030 45,000.00 1.000%800.00 45,800.00 46,600.00 08/01/2030 --575.00 575.00 - 02/01/2031 50,000.00 1.100%575.00 50,575.00 51,150.00 08/01/2031 --300.00 300.00 - 02/01/2032 50,000.00 1.200%300.00 50,300.00 50,600.00 Total $550,000.00 -$28,277.81 $578,277.81 - Yield Statistics Bond Year Dollars $3,253.75 Average Life 5.916 Years Average Coupon 0.8690837% Net Interest Cost (NIC)1.0719265% True Interest Cost (TIC)1.0769881% Bond Yield for Arbitrage Purposes 0.8442611% All Inclusive Cost (AIC)1.3809881% IRS Form 8038 Net Interest Cost 0.8690837% Weighted Average Maturity 5.916 Years Series 2020A GO Tax Abate | Cur Ref 2012A Imp Bds - D | 9/ 9/2020 | 2:08 PM Page 51 Mendota Heights, Minnesota $550,000 General Obligation Bonds, Series 2020A Cur Ref 2012A Imp Bds - Diane/Mendota Hgts Rd Assumes Current Market BQ AAA Rates plus 25bps Debt Service Comparison Date Total P+I Net New D/S Old Net D/S Savings 02/01/2021 ---- 02/01/2022 74,792.81 74,792.81 77,255.00 2,462.19 02/01/2023 73,632.50 73,632.50 75,955.00 2,322.50 02/01/2024 48,352.50 48,352.50 49,655.00 1,302.50 02/01/2025 43,150.00 43,150.00 48,855.00 5,705.00 02/01/2026 47,950.00 47,950.00 53,055.00 5,105.00 02/01/2027 47,680.00 47,680.00 52,065.00 4,385.00 02/01/2028 47,365.00 47,365.00 51,075.00 3,710.00 02/01/2029 47,005.00 47,005.00 49,950.00 2,945.00 02/01/2030 46,600.00 46,600.00 48,825.00 2,225.00 02/01/2031 51,150.00 51,150.00 52,700.00 1,550.00 02/01/2032 50,600.00 50,600.00 51,350.00 750.00 Total $578,277.81 $578,277.81 $610,740.00 $32,462.19 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings.....................30,166.37 Net PV Cashflow Savings @ 1.381%(AIC)............30,166.37 Contingency or Rounding Amount....................(904.22) Net Present Value Benefit $29,262.15 Net PV Benefit / $581,711.12 PV Refunded Debt Service 5.030% Net PV Benefit / $535,000 Refunded Principal...5.470% Net PV Benefit / $550,000 Refunding Principal..5.320% Refunding Bond Information Refunding Dated Date 11/10/2020 Refunding Delivery Date 11/10/2020 Series 2020A GO Tax Abate | Cur Ref 2012A Imp Bds - D | 9/ 9/2020 | 2:08 PM Page 52 Mendota Heights, Minnesota $550,000 General Obligation Bonds, Series 2020A Cur Ref 2012A Imp Bds - Diane/Mendota Hgts Rd Assumes Current Market BQ AAA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I 105% Overlevy 02/01/2021 ----- 02/01/2022 70,000.00 0.400%4,792.81 74,792.81 78,532.45 02/01/2023 70,000.00 0.400%3,632.50 73,632.50 77,314.13 02/01/2024 45,000.00 0.450%3,352.50 48,352.50 50,770.13 02/01/2025 40,000.00 0.500%3,150.00 43,150.00 45,307.50 02/01/2026 45,000.00 0.600%2,950.00 47,950.00 50,347.50 02/01/2027 45,000.00 0.700%2,680.00 47,680.00 50,064.00 02/01/2028 45,000.00 0.800%2,365.00 47,365.00 49,733.25 02/01/2029 45,000.00 0.900%2,005.00 47,005.00 49,355.25 02/01/2030 45,000.00 1.000%1,600.00 46,600.00 48,930.00 02/01/2031 50,000.00 1.100%1,150.00 51,150.00 53,707.50 02/01/2032 50,000.00 1.200%600.00 50,600.00 53,130.00 Total $550,000.00 -$28,277.81 $578,277.81 $607,191.70 Significant Dates Dated 11/10/2020 First Coupon Date 8/01/2021 Yield Statistics Bond Year Dollars $3,253.75 Average Life 5.916 Years Average Coupon 0.8690837% Net Interest Cost (NIC)1.0719265% True Interest Cost (TIC)1.0769881% Bond Yield for Arbitrage Purposes 0.8442611% All Inclusive Cost (AIC)1.3809881% IRS Form 8038 Net Interest Cost 0.8690837% Weighted Average Maturity 5.916 Years Series 2020A GO Tax Abate | Cur Ref 2012A Imp Bds - D | 9/ 9/2020 | 2:08 PM Page 53 Mendota Heights, Minnesota $203,775 General Obligation Bonds, Series 2020A Assessments 2.0% over TIC - Equal Principal Assessments Date Principal Coupon Interest Total P+I 12/31/2021 20,377.50 3.000%6,113.25 26,490.75 12/31/2022 20,377.50 3.000%5,501.92 25,879.42 12/31/2023 20,377.50 3.000%4,890.60 25,268.10 12/31/2024 20,377.50 3.000%4,279.28 24,656.78 12/31/2025 20,377.50 3.000%3,667.96 24,045.46 12/31/2026 20,377.50 3.000%3,056.62 23,434.12 12/31/2027 20,377.50 3.000%2,445.30 22,822.80 12/31/2028 20,377.50 3.000%1,833.98 22,211.48 12/31/2029 20,377.50 3.000%1,222.66 21,600.16 12/31/2030 20,377.50 3.000%611.32 20,988.82 Total $203,775.00 -$33,622.89 $237,397.89 Significant Dates Filing Date 1/01/2021 First Payment Date 12/31/2021 Series 2020A GO Tax Abate | SINGLE PURPOSE | 9/ 9/2020 | 1:40 PM Page 54 Mendota Heights, Minnesota $2,040,000 General Obligation Bonds, Series 2020A GO Improvement Bonds, Series 2012A Combined Savings Debt Service Comparison Date Total P+I Net New D/S Old Net D/S Savings 02/01/2021 ---- 02/01/2022 223,194.31 223,194.31 230,810.00 7,615.69 02/01/2023 229,032.50 229,032.50 237,110.00 8,077.50 02/01/2024 188,172.50 188,172.50 203,210.00 15,037.50 02/01/2025 182,385.00 182,385.00 199,910.00 17,525.00 02/01/2026 186,535.00 186,535.00 201,610.00 15,075.00 02/01/2027 190,485.00 190,485.00 202,870.00 12,385.00 02/01/2028 189,225.00 189,225.00 204,020.00 14,795.00 02/01/2029 187,785.00 187,785.00 199,520.00 11,735.00 02/01/2030 191,165.00 191,165.00 200,020.00 8,855.00 02/01/2031 189,315.00 189,315.00 200,395.00 11,080.00 02/01/2032 192,280.00 192,280.00 200,265.00 7,985.00 Total $2,149,574.31 $2,149,574.31 $2,279,740.00 $130,165.69 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings.....................120,676.07 Net PV Cashflow Savings @ 1.335%(AIC)............120,676.07 Contingency or Rounding Amount....................(3,990.21) Net Present Value Benefit $116,685.86 Net PV Benefit / $2,167,106.28 PV Refunded Debt Service 5.384% Net PV Benefit / $1,985,000 Refunded Principal...5.878% Net PV Benefit / $2,040,000 Refunding Principal..5.720% Refunding Bond Information Refunding Dated Date Refunding Delivery Date 11/10/2020 Aggregate | 9/ 9/2020 | 2:11 PM Page 55 Page 56 DATE: September 15, 2020 TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Cable Television Franchise Renewal Comment: Introduction: The Council is asked to take action to authorize approval of the Cable Television franchise renewal with Comcast, and also adopt a negotiated side letter which contains other commitments which are not continued in the franchise document. Background: Attached is a memo dated September 1st, and other supporting background information which relate to a renewal of the cable television franchise with Comcast, which serves Mendota Heights. This renewal has been a multiple year effort, the results of which were presented at the September 1, 2020, City Council meeting. Please see the memo with that date for specifics. A presentation about the renewal was made at the last City Council meeting by Brian Grogan, who is the attorney who has represented NDC4 in the franchise negotiations. Because this franchise renewal must be done by ordinance, and because the adoption of any new ordinance or change in ordinance must first be posted for a minimum of ten days, action could not have been taken by the Council at that meeting. However, the requisite time for posting has now been met, and so the City Council is asked to take action at the September 15th meeting. The two items needed to be approved by the Council at this meeting include: 1. Approval of Ordinance 559, renewing the Ordinance 2.Approval of the “side letter’, which details agreements which are not contained in the franchise document itself. Recommendation: In order to renew the Comcast Cable Television Franchise for an additional ten years, the NDC4 Commission recommends approval of both documents. Action Required: If the Council concurs, it should, by separate motions, adopt the following actions: 1. Approve Ordinance 559, an ordinance granting a cable television franchise to Comcast of St. Paul, Inc. 5g.Page 57 2. Approve the “Side Letter’ between the City of Mendota Heights and Comcast of St. Paul, relating to provisions of a cable television franchise not contained in the franchise documents. Mark McNeill City Administrator Attachments: 7/30/20 NDC4 Comcast Side Letter 8/5/20 NDC4 Res Comcast Recommending Renewal 9/1/20 Background Memo to Council 9/1/20 NDC4 Comcast Renewal Background Memo 9/15/20 Ordinance 559 Page 58 Ordinance 559 CITY OF MENDOTA HEIGHTS, MINNESOTA ORDINANCE GRANTING A CABLE TELEVISION FRANCHISE TO COMCAST OF ST. PAUL, INC. SEPTEMBER 15, 2020 Page 59 TABLE OF CONTENTS SECTION 1 DEFINITIONS .........................................................................................................1 SECTION 2 FRANCHISE ............................................................................................................6 SECTION 3 OPERATION IN STREETS AND RIGHTS-OF-WAY .......................................9 SECTION 4 REMOVAL OR ABANDONMENT OF SYSTEM ............................................13 SECTION 5 SYSTEM DESIGN AND CAPACITY .................................................................15 SECTION 6 PROGRAMMING AND SERVICES ..................................................................17 SECTION 7 LOCAL PEG PROGRAMMING .........................................................................18 SECTION 8 REGULATORY PROVISIONS ...........................................................................24 SECTION 9 BOND ......................................................................................................................25 SECTION 10 SECURITY FUND ...............................................................................................26 SECTION 11 VIOLATION PROCEDURE ..............................................................................28 SECTION 12 FORECLOSURE AND RECEIVERSHIP ........................................................30 SECTION 13 REPORTING REQUIREMENTS .....................................................................31 SECTION 14 CUSTOMER SERVICE POLICIES..................................................................32 SECTION 15 SUBSCRIBER PRACTICES ..............................................................................37 SECTION 16 COMPENSATION AND FINANCIAL PROVISIONS ...................................38 SECTION 17 MISCELLANEOUS PROVISIONS...................................................................41 EXHIBIT A SD/HD PEG CHANNEL NUMBERS ............................................................. A-1 EXHIBIT B DELIVERY OF LIVE AND RECORDED PROGRAMMING TO AND FROM BELOW LISTED ENTITIES ON C-RAN.........................................B-1 EXHIBIT C PEG MONITORING AND TRANSPORT .................................................... C-1 EXHIBIT D FRANCHISE FEE PAYMENT WORKSHEET ........................................... D-1 EXHIBIT E MONTHLY SUBSCRIBER DATA REPORT ................................................E-1 i Page 60 ORDINANCE NO. 559 AN ORDINANCE RENEWING THE GRANT OF A FRANCHISE TO COMCAST OF ST. PAUL, INC. TO OPERATE AND MAINTAIN A CABLE SYSTEM IN THE CITY OF MENDOTA HEIGHTS, MINNESOTA; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF A FRANCHISE; PROVIDING FOR CITY REGULATION AND ADMINISTRATION OF THE CABLE SYSTEM; TERMINATING THE PRIOR FRANCHISE FINDINGS 1. The City of Mendota Heights, Minnesota (“City”), pursuant to applicable federal and state law, is authorized to grant one (1) or more nonexclusive cable television franchises to construct, operate, maintain and reconstruct cable television systems within the City limits. 2. Comcast of St. Paul, Inc., a Delaware corporation (“Grantee”) has operated a Cable System in the City, under a cable television franchise granted pursuant to a Cable Television Franchise Ordinance approved on or about April 1, 2000. 3. Negotiations between Grantee and the City have been completed and the franchise renewal process followed in accordance with Minnesota Statutes Chapter 238 and the Cable Act (47 U.S.C. §546). 4. The City has determined that it is in the best interest of the City and its residents to renew the cable television franchise with Grantee. 5. The Franchise granted to Grantee by the City is nonexclusive and complies with existing applicable Minnesota Statutes, federal laws and regulations. 6. The City has exercised its authority under Minnesota law to enter into a Joint and Cooperative Agreement, and an Amended Joint and Cooperative Agreement, with other cities authorized to grant cable communications franchises, and has delegated authority to the Northern Dakota County Cable Communications Commission to make recommendations to the City regarding this Franchise and to be responsible for the ongoing administration and enforcement of this Franchise as herein provided. NOW, THEREFORE, THE CITY OF MENDOTA HEIGHTS DOES ORDAIN that a franchise is hereby granted to Comcast of St. Paul, Inc., to operate and maintain a Cable System in the City upon the following terms and conditions: SECTION 1 DEFINITIONS For the purpose of this Franchise, the following, terms, phrases, words, derivations and their derivations shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number and words in the singular number include the plural number. The word “shall” is always Page 61 mandatory and not merely directory. The word “may” is directory and discretionary and not mandatory. 1.1 “Affiliate” means any Person controlling, controlled by or under common control of Grantee. 1.2 “Applicable Law(s)” means any law, statute, charter, ordinance, rule, regulation, code, license, certificate, franchise, permit, writ, ruling, award, executive order, directive, requirement, injunction (whether temporary, preliminary or permanent), judgment, decree or other order issued, executed, entered or deemed applicable by any governmental authority of competent jurisdiction. 1.3 “Basic Cable Service” means any service tier which includes the lawful retransmission of local television broadcast, as set forth in Applicable Law, currently 47 U.S.C. § 522(3). 1.4 “Cable Act” means the Cable Communications Policy Act of 1984, 47 U.S.C. §§ 521 et seq., as amended by the Cable Television Consumer Protection and Competition Act of 1992, as further amended by the Telecommunications Act of 1996, as further amended from time to time. 1.5 “Cable Service” means (a) the one-way transmission to Subscribers of (i) Video Programming or (ii) other programming service, and b) Subscriber interaction, if any, which is required for the selection or use of such Video Programming or other programming service, as set forth in Applicable Law, currently 47 U.S.C. § 522(6). For the purposes of this definition, “other programming service” means information that a cable operator makes available to all Subscribers generally. 1.6 “Cable System” or “System” means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide Cable Service which includes Video Programming and which is provided to multiple Subscribers within a community, but such term does not include: (a) a facility that serves only to retransmit the television signals of one (1) or more television broadcast stations; (b) a facility that serves Subscribers without using any Streets; (c) a facility of a common carrier which is subject, in whole or in part, to the provisions of 47 U.S.C. § 201 et seq., except that such facility shall be considered a Cable System (other than for purposes of 47 U.S.C. § 541(c)) to the extent such facility is used in the transmission of Video Programming directly to Subscribers, unless the extent of such use is solely to provide interactive on-demand services; (d) an open video system that complies with section 47 U.S.C. § 573; or (e) any facilities of any electric utility used solely for operating its electric utility system. Unless otherwise specified, it shall in this document refer to the Cable System constructed and operated in the City under this Franchise. Page 62 1.7 “Channel” means a portion of the electromagnetic frequency spectrum which is used in a Cable System and which is capable of delivering a television channel as defined by the FCC by regulation, as set forth in Applicable Law, currently 47 U.S.C. § 522(4). 1.8 “City” means the City of Mendota Heights, a municipal corporation in the State of Minnesota, acting by and through its City Council, or its lawfully appointed designee. 1.9 “City Code” means the Municipal Code of the City of Mendota Heights, Minnesota, as may be amended from time to time. 1.10 “Commission” means the Northern Dakota County Cable Communications Commission or its successors or delegations, including representatives of the Member Cities as may exist pursuant to a then valid and existing Joint and Cooperative Agreement and Amended Joint and Cooperative Agreement between Member Cities. 1.11 “Converter” means an electronic device, including Digital Transport Adapters, which converts signals to a frequency not susceptible to interference within the television receiver of a Subscriber, and by an appropriate Channel selector also permits a Subscriber to view all Cable Service signals. 1.12 “City Council” means the governing body of the City of Mendota Heights, Minnesota. 1.13 “Day” means a calendar day, unless otherwise specified. 1.14 “Drop” means the cable that connects the Subscriber terminal to the nearest feeder cable of the cable. 1.15 “Effective Date” means the date adopted by the last Member City Council, or the date executed by both parties in accordance with Section 17.6 herein, whichever is later. 1.16 “FCC” means the Federal Communications Commission and any legally appointed, designated or elected agent or successor. 1.17 “Franchise” means the right granted by this Franchise Ordinance and the regulatory and contractual relationship established hereby. 1.18 “Franchise Area” means the entire geographic area within the City as it is now constituted or may in the future be constituted. 1.19 “Franchise Fee” means the fee assessed by the City to Grantee, in consideration of Grantee’s right to operate the Cable System within the City’s Streets, determined in amount as a percentage of Grantee’s Gross Revenues and limited to the maximum percentage allowed for such assessment by federal law. The term Franchise Fee does not include the exceptions noted in 47 U.S.C. §542(g)(2)(A-E). 1.20 “GAAP” means generally accepted accounting principles as promulgated and defined by the Financial Accounting Standards Board (“FASB”), Emerging Issues Task Force (“EITF”) and/or the U.S. Securities and Exchange Commission (“SEC”). Page 63 1.21 “Gross Revenues” means, and shall be construed broadly to include all revenues derived directly or indirectly by Grantee and/or an Affiliated Entity that is the cable operator of the Cable System, from the operation of Grantee’s Cable System to provide Cable Services within the City. Gross Revenues include, by way of illustration and not limitation: (a) monthly fees for Cable Services, regardless of whether such Cable Services are provided to residential or commercial customers, including revenues derived from the provision of all Cable Services (including but not limited to pay or premium Cable Services, pay-per-view, pay-per-event, and video-on-demand Cable Services); (b) fees paid to Grantee for Channels designated for commercial/leased access use and shall be allocated on a pro rata basis using total Cable Service Subscribers within the City; (c) Converter, digital video recorder, remote control, and other Cable Service equipment rentals, leases, or sales; (d) installation, disconnection, reconnection, change-in service, “snow-bird” fees; (e) Advertising Revenues as defined herein; (f) late fees, convenience fees, and administrative fees; (g) other service fees such as HD fees, convenience fees, broadcast fees, regional sports fees, home tech support fees, bill payment fees for in-person or phone payments, additional outlet fees, and related charges relating to the provisions of Cable Service; (h) revenues from program guides and electronic guides; (i) Franchise Fees; (j) FCC regulatory fees; (k) except as provided in subsection (ii) below, any fee, tax or other charge assessed against Grantee by municipality, which Grantee chooses to pass through and collect from its Subscribers; and (l) commissions from home shopping channels and other Cable Service revenue sharing arrangements, which shall be allocated on a pro rata basis using total Cable Service Subscribers within the City. (i) “Advertising Revenues” shall mean revenues derived from sales of advertising that are made available to Grantee’s Cable System Subscribers within the City and shall be allocated on a pro rata basis using total Cable Service Subscribers reached by the advertising. Additionally, Grantee agrees that Gross Revenues subject to Franchise Fees shall include all commissions, representative fees, Affiliated Entity fees, or rebates paid to National Cable Communications and Comcast Spotlight or their successors associated with sales of advertising on the Page 64 Cable System within the City allocated according to this paragraph using total Cable Service Subscribers reached by the advertising. (ii) “Gross Revenues” shall not include: 1. actual bad debt write-offs, except any portion which is subsequently collected, which shall be allocated on a pro rata basis using Cable Services revenue as a percentage of total Subscriber revenues within the City; 2. Public, Education and Government (PEG) Fees; and 3. unaffiliated third-party advertising sales agency fees which are reflected as a deduction from revenues. Grantee shall allocate fees and revenues generated from bundled packages and services to cable revenues pro rata based on current published rate card for the packaged services delivered on a stand-alone basis as follows: (i) To the extent revenues are received by Grantee for the provision of a discounted bundle of services which includes Cable Services and non-Cable Services, Grantee shall calculate revenues to be included in Gross Revenues using a GAAP methodology that allocates revenue, on a pro rata basis when comparing the bundled service price and its components to the sum of the published rate card, except as required by specific federal, state or local law (for example, it is expressly understood that equipment may be subject to inclusion in the bundled price at full rate card value). The City reserves its right to review and to challenge Grantee’s calculations. (ii) Grantee reserves the right to change the allocation methodologies set forth in this section in order to meet the standards required by governing accounting principles as promulgated and defined by the Financial Accounting Standards Board (“FASB”), Emerging Issues Task Force (“EITF”) and/or the U.S. Securities and Exchange Commission (“SEC”). Grantee will explain and document the required changes to the City upon request or as part of any audit or review of Franchise Fee payments, and any such changes shall be subject to the next subsection below. (iii) Resolution of any disputes over the classification of revenue should first be attempted by agreement of the parties, but should no resolution be reached, the parties agree that reference shall be made to GAAP as promulgated and defined by the Financial Accounting Standards Board (“FASB”), Emerging Issues Task Force (“EITF”) and/or the U.S. Securities and Exchange Commission (“SEC”). Notwithstanding the foregoing, the City reserves its right to challenge Grantee’s calculation of Gross Revenues, including the interpretation of GAAP as promulgated and defined by the FASB, EITF and/or the SEC. Page 65 1.22 “Member Cities” means those cities that are parties to a then valid and existing joint powers agreement which, at the time of granting this Franchise, include Inver Grove Heights, Lilydale, Mendota, Mendota Heights, South St. Paul, Sunfish Lake, and West St. Paul. 1.23 “Normal Business Hours” means those hours during which most similar businesses in the City are open to serve customers. In all cases, “Normal Business Hours” must include some evening hours, at least one (1) night per week and/or some weekend hours. 1.24 “Normal Operating Conditions” means those Service conditions which are within the control of Grantee. Those conditions which are not within the control of Grantee include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions which are ordinarily within the control of Grantee include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the Cable System. 1.25 “PEG” means public, education and government. 1.26 “Person” means any natural person and all domestic and foreign corporations, closely-held corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, businesses, common law trusts, societies and/or any other legal entity. 1.27 “Street” means the area on, below, or above a public roadway, highway, street, cartway, bicycle lane, and public sidewalk in which the City has an interest, including other dedicated rights-of-way for travel purposes and utility easements. A Street does not include the airwaves above a public right-of-way with regard to cellular or other nonwire telecommunications or broadcast service. 1.28 “Subscriber” means a Person who lawfully receives Cable Service. 1.29 “Video Programming” means programming provided by, or generally considered comparable to programming provided by, a television broadcast station. 1.30 “Wireline MVPD” means any entity, including the City, that utilizes the Streets to install cable or fiber and is engaged in the business of making available for purchase, by Subscribers, multiple Channels of Video Programming in the City, which could also include the City. For purposes of this Franchise, the term “Wireline MVPD” shall not be limited to entities defined by the FCC as “multichannel video programming distributors” and shall include entities that provide multiple Channels of Video Programming via open video systems, as defined by the FCC, but it is the intent of the Grantee and the City that the term Wireline MVPD shall not include small cell providers, unless the City has the legal authority under Applicable Law to regulate or to impose cable franchise obligations upon such small cell providers. SECTION 2 FRANCHISE 2.1 Grant of Franchise. The City hereby authorizes Grantee to occupy or use the City’s Streets subject to: 1) the provisions of this non-exclusive Franchise to provide Cable Service within the City; and 2) all applicable provisions of the City Code. Unless this Franchise has expired pursuant to Section 2.8 herein or this Franchise is otherwise terminated pursuant to Section 11.2 Page 66 herein, this Franchise shall constitute both a right and an obligation to provide Cable Services as required by the provisions of this Franchise. Nothing in this Franchise shall be construed to prohibit Grantee from: (1) providing services other than Cable Services to the extent not prohibited by Applicable Law; or (2) challenging any exercise of the City’s legislative or regulatory authority in an appropriate forum. The City hereby reserves all of its rights to regulate such other services to the extent not prohibited by Applicable Law and no provision herein shall be construed to limit or give up any right to regulate. 2.2 Reservation of Authority. The Grantee specifically agrees to comply with the lawful provisions of the City Code and applicable regulations of the City. Subject to the police power exception below, in the event of a conflict between A) the lawful provisions of the City Code or applicable regulations of the City and B) this Franchise, the express provisions of this Franchise shall govern. Subject to express federal and state preemption, the material terms and conditions contained in this Franchise may not be unilaterally altered by the City through subsequent amendments to the City Code, ordinances or any regulation of City, except in the lawful exercise of City’s police power. Grantee acknowledges that the City may modify its regulatory policies by lawful exercise of the City’s police powers throughout the term of this Franchise. Grantee agrees to comply with such lawful modifications to the City Code; however, Grantee reserves all rights it may have to challenge such modifications to the City Code whether arising in contract or at law. The City reserves all of its rights and defenses to such challenges whether arising in contract or at law. Nothing in this Franchise shall (A) abrogate the right of the City to perform any public works or public improvements of any description, (B) be construed as a waiver of any codes or ordinances of general applicability promulgated by the City, or (C) be construed as a waiver or release of the rights of the City in and to the Streets. 2.3 Franchise Term. The term of this Franchise shall be ten (10) years from the Effective Date, unless renewed, amended or extended by mutual written consent in accordance with Section 17.7 or terminated sooner in accordance with this Franchise. 2.4 Franchise Area. This Franchise is granted for the Franchise Area defined herein. Grantee shall extend its Cable System to provide Service to any residential unit in the City in accordance with Section 6.7 herein. 2.5 Franchise Nonexclusive. The Franchise granted herein shall be nonexclusive. The City specifically reserves the right to grant, at any time, such additional franchises for a Cable System as it deems appropriate provided, however, such additional grants shall not operate to materially modify, revoke, or terminate any rights previously granted to Grantee other than as described in Section 17.18. The grant of any additional franchise shall not of itself be deemed to constitute a modification, revocation, or termination of rights previously granted to Grantee. Any additional cable franchise grants shall comply with Minn. Stat. § 238.08 and any other applicable federal level playing field requirements. 2.6 Periodic Public Review of Franchise. The City may conduct a public review of the Franchise. The purpose of any such review shall be to ensure, with the benefit of full opportunity for public comment, that the Grantee continues to effectively serve the public in accordance with Applicable Law, and considering any new cable technology, Grantee’s performance with the requirements of this Franchise, local regulatory environment, community needs and interests, and Page 67 other such factors. So long as Grantee receives reasonable notice, Grantee shall cooperate in good faith. The review shall not operate to modify or change any provision of this Franchise without mutual written consent in accordance with Section 17.7 of this Franchise. The City and Grantee shall each be responsible for their own costs regarding the conduct of, or cooperation with, any such periodic review. 2.7 Transfer of Ownership. (a) A sale or transfer of this Franchise, including a sale or transfer by means of a “fundamental corporate change,” as defined in Minn. Stat. § 238.083 subd. 1, or the sale or transfer of stock in Grantee so as to create a new “controlling interest,” as defined in Minn. Stat. § 238.083 subd. 6, in the Cable System, shall require the written approval of the City. Grantee shall submit a written request to the City for the City’s approval, provided, however, that said approval shall not be required where Grantee grants a security interest in its Franchise and assets to secure an indebtedness. The written approval of the City shall not be required under this section for internal corporate reorganizations involving Affiliates or pledges of the Franchise as collateral or security for any loan or other debt instrument. (b) City shall approve or deny in writing the sale or transfer request. City shall set forth in writing with particularity its reason(s) for denying approval. City shall not unreasonably withhold its approval. (c) Any sale or transfer of stock in Grantee so as to create a new controlling interest in the System shall be subject to the requirements of this Section 2.7. The term “controlling interest” as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. (d) In no event shall a transfer or assignment of ownership or control be approved without the transferee becoming a signatory to this Franchise and assuming all rights and obligations thereunder, and assuming all other rights and obligations of the transferor to the City. (e) In accordance with Minn. Stat. § 238.084, Subd. 1(y), the City shall have the right to purchase the System in the event the Franchise or System is proposed to be transferred or sold on the same terms and conditions as the offer pursuant to which transfer notice was provided pursuant to this section. The City shall have thirty (30) days from receipt of an application for consent under this Section 2.7 in which to give notice of its intention to consider exercising such right. (f) If the City has issued a written notice of franchise violation in accordance with the terms of this Franchise, the transfer may be conditioned upon the transferee agreeing to a mutually acceptable remediation plan. The approval of any transfer of ownership pursuant to this section shall not be deemed to waive any rights of the City to subsequently enforce noncompliance issues relating to this Franchise even if such issues predated the approval, whether known or unknown to the City. Page 68 2.8 Expiration. Upon expiration of the Franchise, the City shall have the right at its own election and subject to Grantee’s rights under Section 626 of the Cable Act to: (a) extend the Franchise, though nothing in this provision shall be construed to require such extension; (b) renew the Franchise, in accordance with Applicable Laws; (c) invite additional franchise applications or proposals; (d) terminate the Franchise subject to any rights Grantee has under Section 626 of the Cable Act; or (e) take such other action as the City deems appropriate. 2.9 Right to Require Removal of Property. At the expiration of the term for which this Franchise is granted, provided no renewal is granted, or upon its forfeiture or revocation as provided for herein, the City shall have the right to require Grantee to remove at Grantee’s own expense all or any part of the Cable System from all Streets and public ways within the Franchise Area within a reasonable time. If Grantee fails to do so, the City may perform the work and collect the cost thereof from Grantee. However, Grantee shall have no obligation to remove the Cable System where it utilizes the system to provide other non-Cable Services and has any other authority under Applicable Law to maintain facilitates in the public rights-of-way, or where Grantee is able to find a purchaser of the Cable System who holds such authorization. 2.10 Continuity of Service Mandatory. It shall be the right of all Subscribers to receive Cable Service in accordance with the terms of this Franchise and Applicable Law. In the event that Grantee elects to overbuild, rebuild, modify, or transfer the system in accordance with Section 2.7, or the City revokes or fails to renew the Franchise, Grantee shall make its best effort to ensure that all Subscribers receive continuous uninterrupted service, regardless of the circumstances, while the Franchise remains effective. In the event of expiration, revocation/termination, purchase, lease- purchase, condemnation, acquisition, taking over or holding of plant and equipment, sale, lease, or other transfer to any other Person, including any other grantee of a cable communications franchise, the current Grantee shall cooperate fully to operate the system in accordance with the terms and conditions of this Franchise for a temporary period sufficient in length to maintain continuity of service to all Subscribers. SECTION 3 OPERATION IN STREETS AND RIGHTS-OF-WAY 3.1 Use of Streets. (a) Grantee may, subject to the terms of this Franchise and the City Code, erect, install, construct, repair, replace, reconstruct and retain in, on, over, under, upon, across and along the Streets within the City such lines, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, attachments and other property and equipment as are necessary and appurtenant to the operation of a Cable System within the City. Without limiting the foregoing, Grantee expressly agrees that it will construct, operate and maintain its Cable System in compliance with, and subject to, the requirements of the City Code, Page 69 including by way of example and not limitation, those requirements governing the placement of Grantee’s Cable System; and with other applicable City Codes, and will obtain, pay for and maintain all permits and bonds required by the City Code in addition to those required in this Franchise. (b) All wires, conduits, cable and other property and facilities of Grantee shall be so located, constructed, installed and maintained as not to endanger or unnecessarily interfere with the usual and customary trade, traffic and travel upon, or other use of the Streets of City. Grantee shall keep and maintain all of its property in good condition, order and repair so that the same shall not menace or endanger the life or property of any Person. Grantee shall keep accurate maps and records of all of its wires, conduits, cables and other property and facilities located, constructed and maintained in the City. (c) All wires, conduits, cables and other property and facilities of Grantee, shall be constructed and installed in an orderly and professional manner in accordance with all applicable requirements of the City Code and Applicable Law. All wires, conduits and cables shall be installed, where possible, parallel with electric and telephone lines. Multiple cable configurations shall be arranged in parallel and bundled with due respect for engineering considerations. (d) Nothing in this Franchise shall be construed to prevent the City from constructing, maintaining, repairing or relocating sewers; grading, paving, maintaining, repairing, relocating and/or altering any Street; constructing, laying down, repairing, maintaining or relocating any water mains; or constructing, maintaining, relocating, or repairing any sidewalk or other public work. 3.2 Construction or Alteration. Grantee shall in all cases comply with applicable sections of the City Code, City resolutions and City regulations regarding the acquisition of permits and/or such other items as may be reasonably required in order to construct, alter or maintain the Cable System. Grantee shall, upon request, provide information to the City regarding its progress in completing or altering the Cable System. 3.3 Non-Interference. Grantee shall exert its best efforts to construct and maintain a Cable System so as not to interfere with other use of Streets. Grantee shall, where possible in the case of above ground lines, make use of existing poles and other facilities available to Grantee. When residents receiving underground service or who will be receiving underground service will be affected by proposed construction or alteration, Grantee shall provide such notice as set forth in the permit or in City Code of the same to such affected residents. 3.4 Consistency with Designated Use. Notwithstanding the above grant to use Streets, no Street shall be used by Grantee if the City, in its sole opinion, determines that such use is inconsistent with the terms, conditions or provisions by which such Street was created or dedicated, or presently used under Applicable Laws. 3.5 Undergrounding. (a) Grantee shall place underground all of its transmission lines which are located or are to be located above or within the Streets of the City in the following cases: Page 70 (i) all other existing utilities are required to be placed underground by statute, resolution, policy or other Applicable Law; (ii) Grantee is unable to get pole clearance; (iii) underground easements are obtained from developers of new residential areas; or (iv) utilities are overhead but residents prefer underground (undergrounding provided at cost paid by benefitted residents). (b) If an ordinance is passed which involves placing underground certain utilities including Grantee’s cable plant which is then located overhead, Grantee shall participate in such underground project and shall remove poles, cables and overhead wires if requested to do so and place facilities underground. The City and Grantee shall comply with the provisions of Minn. Rules, Chapter 7819.3100 governing the relocation of existing facilities. Nothing in this Franchise shall mandate that City provide reimbursement to Grantee for the costs of such relocation and removal, and the Grantee shall not seek damages or other compensation from the City for such compliance, unless reimbursement is mandatory under Minn. Rules, Chapter 7819.3100. However, if the City makes available funds for the cost of placing facilities underground, nothing herein shall preclude the Grantee from participating in such funding to the extent consistent with the City Code or Applicable Laws. If non-City funds, such as funds from residents or state or federal grant funding, are made available to place electric or telephone lines underground, nothing herein shall prohibit Grantee from participating in such funding. (c) Grantee shall use conduit or its functional equivalent to the greatest extent possible for undergrounding, except for Drops from pedestals to Subscribers’ homes and for cable on other private property where the owner requests that conduit not be used. Cable and conduit shall be utilized which meets the highest industry standards for electronic performance and resistance to interference or damage from environmental factors. Grantee shall use, in conjunction with other utility companies or providers, common trenches for underground construction wherever available. 3.6 Maintenance and Restoration. (a) Restoration. In case of disturbance of any Street, public way, paved area or public improvement, Grantee shall, at its own cost and expense and in accordance with the requirements of the City Code restore such Street, public way, paved area or public improvement to substantially the same condition as existed before the work involving such disturbance took place. All requirements of this section pertaining to public property shall also apply to the restoration of private easements and other private property. Grantee shall perform all restoration work within a reasonable time and with due regard to seasonal working conditions. If Grantee fails, neglects or refuses to make restorations as required under this section and any applicable City Code provision, then the City may do such work or cause it to be done, and the cost thereof to the City shall be paid by Grantee. If Grantee Page 71 causes any damage to private property in the process of restoring facilities, Grantee shall repair such damage. (b) Maintenance. Grantee shall maintain all above ground improvements that it places on City Streets pursuant to the City Code and any permit issued by the City. In order to avoid interference with the City’s ability to maintain the Streets, Grantee shall provide such clearance as is required by the City Code and any permit issued by the City. If Grantee fails to comply with this provision, and by its failure, property is damaged, Grantee shall be responsible for all damages caused thereby. (c) Disputes. In any dispute over the adequacy of restoration or maintenance relative to this section, final determination shall be the prerogative of the City, Department of Public Works and consistent with the City Code and any permit issued by the City. 3.7 Work on Private Property. Grantee, with the consent of property owners, shall have the authority, pursuant to the City Code, to trim trees upon and overhanging Streets, alleys, sidewalks, and public ways so as to prevent the branches of such trees from coming in contact with the wires and cables of Grantee, except that at the option of the City, such trimming may be done by it or under its supervision and direction at the reasonable expense of Grantee. 3.8 Relocation. (a) Public Property. Grantee shall relocate its System and facilities in accordance with the City Code. In addition, if, during the term of the Franchise, the City or any government entity elects or requires a third party to alter, repair, realign, abandon, improve, vacate, reroute or change the grade of any Street or other public property; or to construct, maintain or repair any public improvement; or to replace, repair install, maintain, or otherwise alter any cable, wire conduit, pipe, line, pole, wire-holding structure, structure, or other facility, including a facility used for the provision of utility or other services or transportation of drainage, sewage or other liquids, for any public purpose, Grantee shall, upon request, except as otherwise hereinafter provided, at its sole expense remove or relocate as necessary its poles, wires, cables, underground conduits, vaults, pedestals, manholes and any other facilities which it has installed. The City and Grantee shall comply with the provisions of Minn. Rules, Chapter 7819.3100 governing the relocation of existing facilities. Nothing in this Franchise shall mandate that the City provide reimbursement to Grantee for the costs of such relocation and removal, and the Grantee shall not seek damages or other compensation from the City for such compliance, unless reimbursement is mandatory under Minn. Rules, Chapter 7819.3100. However, if the City makes available funds for the cost of placing facilities underground, nothing herein shall preclude the Grantee from participating in such funding to the extent consistent with the City Code or Applicable Laws. If non-City funds, such as funds from residents or state or federal grant funding, are made available to place electric or telephone lines underground, nothing herein shall prohibit Grantee from participating in such funding. (b) Utilities and Other Franchisees. If, during the term of the Franchise, another entity which holds a franchise or any utility requests Grantee to remove or relocate such facilities to accommodate the construction, maintenance or repair of the requesting party’s facilities, Page 72 or their more efficient use, or to “make ready” the requesting party’s facilities for use by others, or because Grantee is using a facility which the requesting party has a right or duty to remove, Grantee shall do so. The companies involved may decide among themselves who is to bear the cost of removal or relocation, pursuant to City Code, and provided that the City shall not be liable for such costs. (c) Notice to Remove or Relocate. Any Person requesting Grantee to remove or relocate its facilities shall give Grantee no less than forty-five (45) Days’ advance written notice advising Grantee of the date or dates removal or relocation is to be undertaken, provided that no advance written notice shall be required in emergencies or in cases where public health and safety or property is endangered. (d) Failure by Grantee to Remove or Relocate. If Grantee fails, neglects or refuses to remove or relocate its facilities as directed by the City; or in emergencies or where public health and safety or property is endangered, the City may do such work or cause it to be done, and the cost thereof to the City shall be paid by Grantee. If Grantee fails, neglects or refuses to remove or relocate its facilities as directed by another franchisee or utility, that franchisee or utility may do such work or cause it to be done, and if Grantee would have been liable for the cost of performing such work, the cost thereof to the party performing the work or having the work performed shall be paid by Grantee. (e) Procedure for Removal of Cable. Grantee shall not remove any underground cable or conduit which requires trenching or other opening of the Streets along the extension of cable to be removed, except as hereinafter provided. Grantee may remove any underground cable from the Streets which has been installed in such a manner that it can be removed without trenching or other opening of the Streets along the extension of cable to be removed. Subject to Applicable Law, Grantee shall remove, at its sole cost and expense, any underground cable or conduit by trenching or opening of the Streets along the extension thereof or otherwise which is ordered to be removed by the City based upon a determination, in the sole discretion of the City, that removal is required in order to eliminate or prevent a hazardous condition. Underground cable and conduit in the Streets which is not removed shall be deemed abandoned and title thereto shall be vested in the City. (f) Movement of Buildings. Grantee shall, upon request by any Person holding a building moving permit, franchise or other approval issued by the City, temporarily remove, raise or lower its wire to permit the movement of buildings. The expense of such removal, raising or lowering shall be paid by the Person requesting same, and Grantee shall be authorized to require such payment in advance. The City shall require all building movers to provide not less than fifteen (15) Days’ notice to the Grantee to arrange for such temporary wire changes. SECTION 4 REMOVAL OR ABANDONMENT OF SYSTEM 4.1 Removal of Cable System. In the event that: (l) the use of the Cable System is discontinued for any reason for a continuous period of twelve (12) months; or (2) the Cable System has been installed in a Street without complying with the requirements of this Franchise or the City Page 73 Code, Grantee, at its expense shall, at the demand of the City remove promptly from the Streets all of the Cable System other than any which the City may permit to be abandoned in place. In the event of any such removal Grantee shall promptly restore the Street to a condition as nearly as possible to its prior condition or other public places in the City from which the System has been removed. However, Grantee shall have no obligation to remove the Cable System where it utilizes the system to provide other non-Cable Services and has any other authority under Applicable Law to maintain facilities in the Street, or where Grantee is able to find a purchaser of the Cable System who holds such authorization. 4.2 Abandonment of Cable System. In the event of Grantee’s abandonment of the Cable System, City shall have the right to require Grantee to comply with the state right-of-way rules, Minn. Rules, Chapter 7819. The Cable System to be abandoned in place shall be abandoned in the manner prescribed by the City. Grantee may not abandon any portion of the System without having first given three (3) months written notice to the City. Grantee may not abandon any portion of the System without compensating the City for damages resulting from the abandonment. 4.3 Removal after Abandonment or Termination. If Grantee has failed to commence removal of System, or such part thereof as was designated by the City, within thirty (30) Days after written notice of the City’s demand for removal consistent with Minn. Rules, Ch. 7819, is given, or if Grantee has failed to complete such removal within twelve (12) months after written notice of the City’s demand for removal is given, the City shall have the right to apply funds secured by the Bond toward removal and/or declare all right, title, and interest to the Cable System for the City with all rights of ownership including, but not limited to, the right to operate the Cable System or transfer the Cable System to another for operation by it. 4.4 City Options for Failure to Remove Cable System. If Grantee has failed to complete such removal within the time given after written notice of the City’s demand for removal is given, the City shall have the right to exercise one of the following options: (a) Declare all right, title and interest to the System for the City or its designee with all rights of ownership including, but not limited to, the right to operate the System or transfer the System to another for operation by it; or (b) Declare the System abandoned and cause the System, or such part thereof as the City shall designate, to be removed at no cost to the City. The cost of said removal shall be recoverable from the security fund, indemnity and penalty section provided for in this Franchise or from Grantee directly. (c) Upon termination of service to any Subscriber, Grantee shall promptly remove all facilities and equipment from within the dwelling of a Subscriber who owns such dwelling upon his or her written request, except as provided by Applicable Law. Such Subscribers shall be responsible for any costs incurred by Grantee in removing the facilities and equipment. 4.5 System Construction and Equipment Standards. The Cable System shall be installed and maintained in accordance with standard engineering practices and shall conform, when Page 74 applicable, with the National Electrical Safety Code, the National Electrical Code and the FCC’s Rules and Regulations. 4.6 System Maps and Layout. In addition to any generally applicable mapping requirements included in the City Code and required of other utilities, Grantee shall maintain complete and accurate system maps, which shall include trunks, distribution lines, and nodes. Such maps shall include up-to-date route maps showing the location of the Cable System adjacent to the Streets. Grantee shall make all maps available for review by the appropriate City personnel. SECTION 5 SYSTEM DESIGN AND CAPACITY 5.1 Availability of Signals and Equipment. (a) The Cable System utilizes a fiber to the fiber node architecture, with fiber optic cable deployed from Grantee’s headend to Grantee’s fiber nodes, tying into Grantee’s coaxial Cable System serving Subscribers. The System shall pass a minimum of 750 MHz (with a minimum passband of between 50 and 750 MHz) and shall be maintained to provide to Subscribers a minimum of at least two hundred (200) or more activated downstream video Channels, or such comparable video viewing capability as is provided in light of developing technologies and video distribution practices in the future. (b) The entire System shall be technically capable of transmitting industry-standard digital television signals in a manner and quality consistent with applicable FCC regulations. (c) Grantee agrees to maintain the Cable System in a manner consistent with, or in excess of the specifications in Section 5.1 (a) and (b) throughout the term of the Franchise with sufficient capability and technical quality to enable the implementation and performance of all requirements of this Franchise, including the exhibits hereto, and in a manner which meets or exceeds FCC technical quality standards at 47 C.F.R. § 76 Subpart K, regardless of the particular format in which a signal is transmitted. 5.2 Equal and Uniform Service. Grantee shall provide access to equal and uniform Cable Service throughout the City consistent with Applicable Law. 5.3 System Specifications. (a) System Maintenance. In all construction and service provision activities, Grantee shall meet or exceed the construction, technical performance, extension and service requirements set forth in this Franchise. (b) Emergency Alert Capability. At all times during the term of this Franchise, Grantee shall provide and maintain an Emergency Alert System (EAS) consistent with Applicable law and regulations including 47 C.F.R., Part 11, and any Minnesota State Emergency Alert System requirements. The City may identify authorized emergency officials for activating the EAS insofar as the City’s process is consistent with the Minnesota State Emergency Statewide Plan (“EAS Plan”). The City may also develop a local plan Page 75 containing methods of EAS message distribution, insofar as the local plan is consistent with Applicable Laws and the EAS Plan. (c) Standby Power. Grantee shall provide standby power generating capacity at the Cable System control center and at all hubs. Grantee shall maintain standby power system supplies, rated for at least two (2) hours’ duration, throughout the trunk and distribution networks. In addition, Grantee shall have in place throughout the Franchise term a plan, and all resources necessary for implementation of the plan, for dealing with outages of more than two (2) hours. (d) Technical Standards. The technical standards used in the operation of the Cable System shall comply, at minimum, with the technical standards promulgated by the FCC relating to Cable Systems pursuant to Title 47, Section 76, Subpart K of the Code of Federal Regulations, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. The Cable System shall be installed and maintained in accordance with standard engineering practices and shall conform with the National Electrical Safety Code and all other Applicable Laws governing the construction of the Cable System. 5.4 Performance Testing. Grantee shall perform all system tests at the intervals required by the FCC, and all other tests reasonably necessary to determine compliance with technical standards required by this Franchise. These tests may include, at a minimum: (a) Initial proof of performance for any construction; (b) Tests in response to Subscriber complaints; and (c) Tests reasonably requested by the City to demonstrate Franchise compliance. (d) Written records of all system test results performed by or for Grantee shall be maintained, and shall be available for City inspection upon request. 5.5 Special Testing. (a) Throughout the term of this Franchise, City shall have the right to inspect all construction or installation work performed pursuant to the provisions of the Franchise. In addition, City may require special testing of a location or locations within the System if there is a particular matter of controversy or unresolved complaints regarding such construction or installation work or pertaining to such location(s). Demand for such special tests may be made on the basis of complaints received or other evidence indicating an unresolved controversy or noncompliance. Such tests shall be limited to the particular matter in controversy or unresolved complaints. City shall endeavor to so arrange its request for such special testing so as to minimize hardship or inconvenience to Grantee or to the Subscribers impacted by such testing. (b) Before ordering such tests, Grantee shall be afforded thirty (30) Days following receipt of written notice to investigate and, if necessary, correct problems or complaints upon which tests were ordered. City shall meet with Grantee prior to requiring special tests Page 76 to discuss the need for such and, if possible, visually inspect those locations which are the focus of concern. If, after such meetings and inspections, City wishes to commence special tests and the thirty (30) Days have elapsed without correction of the matter in controversy or unresolved complaints, the tests shall be conducted at Grantee’s expense by Grantee’s qualified engineer. The City shall have a right to participate in such testing by having an engineer of City’s choosing, and at City’s expense, observe and monitor said testing. SECTION 6 PROGRAMMING AND SERVICES 6.1 Categories of Programming Service. Grantee shall provide video programming services in at least the following broad categories subject to Applicable Law: Local Broadcast (subject to federal carriage requirements) Public Broadcast News and Information Sports General Entertainment Arts/Performance/Humanities Science/Technology Children/Family/Seniors Foreign Language/Ethnic Programming PEG Programming (to the extent required by the Franchise) Movies Leased Access 6.2 Changes in Programming Services. Grantee shall provide at least thirty (30) Days’ prior written notice to Subscribers and to the City of Grantee’s request to effectively delete any broad category of programming or any Channel within its control, including all proposed changes in bandwidth or Channel allocation and any assignments including any new equipment requirements that may occur as a result of these changes. 6.3 Parental Control Device or Capability. Upon request by any Subscriber, Grantee shall make available a parental control or lockout device or functionality that will enable the Subscriber to block all access to any and all Channels without affecting those not blocked. Grantee shall inform Subscribers of the availability of the lockout device or functionality at the time of original subscription and annually thereafter. 6.4 FCC Reports. The results of any tests required to be filed by Grantee with the FCC shall also be copied to City within ten (10) Days of the conduct of the date of the tests. 6.5 Annexation. Unless otherwise provided by Applicable Law, including the City Code, upon the annexation of any additional land area by City, the annexed area shall thereafter be subject to all the terms of this Franchise upon sixty (60) Days written notification to Grantee of the annexation by City. Unless otherwise required by Applicable Laws, nothing herein shall require the Grantee to expand its Cable System to serve, or to offer Cable Service to any area annexed by the City if such area is then served by another Wireline MVPD franchise to provide multichannel video programming. Page 77 6.6 Line Extension. (a) Grantee shall construct and operate its Cable System so as to provide Cable Service within the Franchise Area where there exists a density equivalent of seven (7) dwelling units per one-quarter (1/4) mile of feeder cable as measured from the nearest active plant of the Cable System if the extension is to be constructed using aerial plant, and nine (9) dwelling units per one-quarter (1/4) mile of feeder cable as measured from the nearest active plant if the extension is to be constructed using underground plant. The City, for its part, shall endeavor to exercise reasonable efforts to require developers and utility companies to provide the Grantee with at least fifteen (15) Days advance notice of an available open trench for the placement of necessary cable. (b) Any residential unit located within one hundred twenty-five (125) feet from the nearest point of access on the Street from which the Cable System is designed to serve the site shall be connected to the Cable System at no charge other than the standard installation charge. Grantee shall, within fifteen (15) Days request by any potential Subscriber residing in City beyond the one hundred twenty-five (125) foot limit, provide a quote identifying the costs and construction schedule associated with extending service to such Subscriber. Grantee shall perform the extension of service as soon as reasonably possible and in no event later than the date committed in the quote, excluding events covered by Section 17.9 herein. The Subscriber shall pay the net additional Drop costs, unless the Grantee agrees to waive said costs. To the extent consistent with Applicable Laws, Grantee agrees that it shall impose installation costs for non-standard installations in a uniform and nondiscriminatory manner throughout the City. 6.7 Nonvoice Return Capability. Grantee is required to use cable and associated electronics having the technical capacity for nonvoice return communications. SECTION 7 LOCAL PEG PROGRAMMING 7.1 Number of PEG Channels. (a) Upon the Effective Date of this Franchise, Grantee will continue to make available a minimum of seven (7) PEG Channels in Standard Definition (“SD”). Throughout the term of this Franchise Grantee shall provide the PEG Channels on the Basic Cable Service tier or such other most subscribed tier of Cable Service (within the Franchise Area) as may be offered by Grantee in accordance with Applicable Law. (b) For purposes of this Franchise, a high definition (“HD”) signal refers to a television signal delivering picture resolution of either 720p or greater, or such other resolution in the same range that Grantee commonly utilizes for other similar programming Channels. 7.2 HD PEG Channels. (a) Within ninety (90) Days of the Effective Date of this Franchise, Grantee shall provide five (5) SD PEG Channels and two (2) HD PEG Channels to be shared by the Commission’s seven (7) Member Cities. Page 78 (b) By January 1, 2022, and after ninety (90) Days written notice to the Grantee, which notice Commission may send on or before October 1, 2021, Grantee shall provide five (5) SD PEG Channels and three (3) HD PEG Channels to be shared by the Commission’s seven (7) Member Cities. Following implementation of this Section 7.2(b), the Grantee shall provide a total of eight (8) PEG Channels ((5) SD / (3) HD). (c) The HD PEG Channels may duplicate the SD PEG Channels or may be programmed with different “best of” content, based on Commission’s sole discretion. (d) On or after the fifth (5th) anniversary of the Effective Date of this Franchise and after ninety (90) Days written notice to the Commission, Grantee may require that the Commission give back one (1) SD PEG Channel. Following implementation of this Section 7.2(d), the Commission will have four (4) SD PEG Channels and three (3) HD PEG Channels to be shared by the Commission’s seven (7) Member Cities. (e) If Grantee terminates all SD Channels and SD Cable Services and provides all Cable Services to all Subscribers in HD only, and after ninety (90) Days written notice to the Commission, Grantee shall provide four (4) HD PEG Channels to be shared by the Commission’s seven (7) Member Cities. (f) The City acknowledges that receipt of an HD format PEG Channel may require Subscribers to buy or lease special equipment, or pay additional HD charges applicable to all HD services. (g) The Commission shall pay for and be responsible for all HD playback servers to be located at 5845 Blaine Avenue, Inver Grove Heights, MN (“Playback Facility”). Grantee agrees that it shall be responsible for costs associated with the provision of encoders or other equipment necessary to receive HD/SD signals at the headend, and to convert PEG HD signals to SD consistent with the historic practice between the parties. 7.3 Control of PEG Channels. The control and administration of the PEG Channels shall rest with the City. The City may delegate, from time to time over the term of this Franchise, such control and administration to various entities as determined in City’s sole discretion. As of the Effective Date of this Franchise the City has delegated control of the PEG Channels to the Commission. 7.4 Transmission of PEG Channels. PEG Channels may be used for transmission of non- video signals in compliance with Applicable Laws. This may include downstream transmission of data using a protocol such as TCP/IP or current industry standards. Should Grantee develop the capability to provide bi-directional data transmission, spectrum capacity shall be sufficient to allow Subscribers to transmit data to PEG facilities. 7.5 PEG Channel Locations. (a) Grantee shall continue cablecasting PEG programming on the Cable System on the same Channel locations as such programming is cablecast within the City as of the Effective Date. Current SD PEG Channel locations as of the Effective Date as well as the location of the first two (2) HD PEG Channels to be provided under Section 7.2 are listed Page 79 on Exhibit A. Grantee agrees not to change these PEG Channel locations more than two (2) times during the term of this Franchise unless required by law for other programmers with specific Channel number rights or pursuant to an overall Channel reorganization of the entire Channel lineup. In no event shall any PEG Channel relocations be made prior to ninety (90) days written notice to the City by Grantee, except for circumstances beyond Grantee’s control. If relocated, Grantee will work in good faith with the City to identify new Channel locations such that the PEG Channels will be located within reasonable proximity to other broadcast or news Channels where available Channel numbers allow. (b) Grantee agrees not to encrypt the PEG Channels differently than other commercial Channels available on the Cable System. (c) In the event Grantee requires relocation of a PEG Channel pursuant to Section 7.5(a), Grantee shall provide a rebranding reimbursement grant of One Thousand Five Hundred and No/100 Dollars ($1,500) per relocated Channel. 7.6 Navigation to PEG Channels and Electronic Programming Guide. Grantee agrees that if it utilizes any navigation interfaces under its control on its Cable System for all Channels, the PEG Channels shall be treated in a non-discriminatory fashion consistent with Applicable Laws so that Subscribers will have ready access to PEG Channels. Grantee will maintain the existing ability of the City to place PEG Channel programming information on the interactive Channel guide via the electronic programming guide (“EPG”) vendor (“EPG provider”) that Grantee utilizes to provide the guide service. Grantee will be responsible for providing the designations and instructions necessary for the PEG Channels to appear on the EPG. All costs and operational requirements of the EPG provider shall be the responsibility of the City. City acknowledges that the EPG may not be technically possible for all PEG programming, and that Grantee is not responsible for operations of the EPG provider. 7.7 Ownership of PEG Channels. Grantee does not relinquish its ownership of or ultimate right of control over a Channel by designating it for PEG use. A PEG access user – whether an individual, education or government user – acquires no property or other interest by virtue of the use of a Channel position so designated. Grantee shall not exercise editorial control over any public, education, or government use of a Channel position, except Grantee may refuse to transmit any public access program or portion of a public access program that contains obscenity, indecency, or nudity in violation of Applicable Law. 7.8 PEG Monitoring. Grantee shall continue to provide the capability, without charge, for Commission representatives at the four (4) City Hall locations and the Commission’s master control facility listed in Exhibit C, to monitor and verify the audio and visual quality of PEG Channels received by Subscribers as well as the existing connections and equipment at the Commission’s master control facility. This will include equipment comparable to that deployed to residential cable Subscribers that will allow the Commission to verify the accuracy of EPG listings for the PEG Channels consistent with what is currently provided. Grantee shall also maintain one (1) feed to the Commission office to provide the ability to monitor Subscriber services and address Subscriber concerns which feed shall include all cable boxes and platforms (i.e. Xfinity X1). Page 80 7.9 PEG Transport. During the term of this Franchise, Grantee will provide PEG transport as follows: (a) The Commission may transmit signals for the PEG Channels in “real time” upstream from the four (4) City Hall locations listed in Exhibit C to the Commission’s playback facility currently located at 5845 Blaine Avenue, Inver Grove Heights, MN (“Playback Facility”) to Grantee’s hub and head-end using existing fiber connections without additional charge or offsets from Grantee. Grantee shall continue to provide without charge or offsets, fiber backhaul and transmitter/receiver equipment for live PEG programming from City Halls as is the practice on the Effective Date of this Franchise. (b) Grantee shall provide the capability for the Commission, either through a fiber connection, DOCSIS cable modem solution, or other technology of Grantee’s choosing, to transmit live programming from additional locations of the Commission’s choosing, subject to the Commission providing or renting necessary modems, encoders, decoders or similar devices, configuring such equipment, and removing such equipment in the event of interference with Grantee’s delivery of Cable Service. To the extent a set of mobile DOCSIS cable modems (or such other devices as may replace DOCSIS modems during the term of this Franchise) are utilized, such modems shall be able to connect to the Subscriber network at permanent or temporary Drops, subject to two (2) weeks prior written notice to Grantee and use upstream capacity on the Subscriber network to transmit programming via the Subscriber network and the connections to the Playback Facility equal to or of better quality than the PEG signals transmitted to Subscribers. (i) The Commission shall be responsible for purchasing high speed internet service for the transmission of live programming at market rates. (ii) The Commission shall provide any necessary encoders, decoders or similar devices and shall configure equipment and connections so that signals can be transmitted to the Playback Facility. (iii) Grantee may request that the Commission remove an encoder, or similar device if it technically interferes with Grantee’s delivery of Cable Service. (c) Grantee shall maintain the existing fiber paths/equipment and existing PEG connectivity to the locations listed in Exhibit C during the term of this Franchise, without additional charge (with no recurring, monthly costs or offsets, except that Grantee may invoice the Commission for any actual repair or maintenance costs which shall not exceed Five Thousand and No/100 Dollars ($5,000) per year and which shall be estimated to the Commission in advance whenever possible, and shall be documented and invoiced to the Commission for payment) to permit the Commission/City to transport PEG programming. This will allow the Commission to continue cablecasting PEG programming from the locations listed in Exhibit C and will maintain connections from the Commission’s master control to Grantee’s hub and head-end without additional charge or offsets. 7.10 Interconnection with other Twin Cities PEG Stations. Grantee shall continue to make the metro area fiber ring known as the PRISMA Ring available to the City, without charge, as long Page 81 as the PRISMA Ring remains serviceable. The City may use the PRISMA Ring (or its equivalent) to send and receive live and recorded programming to/from other Twin Cities PEG stations for as long as the network remains viable. Grantee shall provide City access to the PRISMA Ring at an agreed upon demarcation point. Grantee will provide use of and maintain the PRISMA Ring without charge, but Grantee will not be obligated to replace network equipment on the PRISMA Ring or for any equipment on the City’s side of the demarcation point. Grantee agrees to continue to provide, without charge or offsets, use of Grantee’s Converged Regional Area Network (C- RAN) for delivery of live and recorded programming to and from the entities listed on Exhibit B, limited to six (6) multi-cast IP Channels. This obligation shall terminate if Grantee no longer utilizes the C-RAN for its own business purposes. Grantee shall have no obligation to replace any network equipment currently located in its headend facility or at the City or Commission facility necessary to deliver or receive such programming over the C-RAN. Replacement of any decoding equipment necessary to receive the programming via the C-RAN will be the responsibility of the City and will require Grantee’s approval to ensure equipment compatibility. If there are incremental equipment and maintenance costs specific to the PEG use of the C-RAN, Grantee will notify the City of such costs and allow the City the option of reimbursing Grantee for such costs or to cease using the C-RAN. Grantee shall not be responsible for providing a specific performance level over the C-RAN or resolving any transmission issues caused by incompatibility of audio or video file formats with interconnected equipment. 7.11 Future PEG Transport. At such time that the City determines: (a) that the City desires the capacity to allow Subscribers in the City to receive PEG programming (video or character generated) which may originate from schools, City facilities, other government facilities or other designated facilities (other than those indicated in paragraph 7.9); or (b) that the City desires to establish or change a location from which PEG programming is originated; or (c) that the City desires to upgrade the connection to Grantee from an existing signal point of origination, the City will give Grantee written notice detailing the point of origination and the capability sought by the City. After receipt of such notice by Grantee, Grantee and the City may enter into an agreement which compensates Grantee in accordance with Applicable Law, for new sites added or upgraded connections. After such an agreement has been executed, Grantee will implement any necessary Cable System changes within a reasonable period of time. Nothing herein prevents the City, or a private contractor retained by the City, from constructing said connection, as long as such connection does not interconnect with Grantee’s Cable System without Grantee’s consent or interfere with Grantee’s Cable System. 7.12 PEG Channel Carriage. (a) The City or its designee shall be responsible for developing, implementing, interpreting and enforcing rules for PEG Channel use. Page 82 (b) The Grantee shall monitor the PEG Channels for technical quality to ensure that they meet FCC technical standards including those applicable to the carriage of PEG Channels, provided however, that the Grantee is not responsible for the production quality of PEG programming productions. The City, or its designee, shall be responsible for the production and quality of all PEG programming. Grantee shall carry all components of the SD/HD PEG Channel(s) including, but not limited to, closed captioning, stereo audio and other elements associated with the programming. 7.13 PEG Programming Financial Support. (a) During the term of the Franchise, Grantee shall pay quarterly to the Commission a PEG Fee in an amount equal to two and one-quarter percent (2.25%) of its quarterly Gross Revenues, for the duration of this Franchise. Payments pursuant to this subsection shall be paid to the Commission on the same schedule and including the same payment worksheets as the Franchise Fee payments set forth in Section 16.1(a-c) of this Franchise. (b) The PEG Fee may be used by City and Commission to fund PEG expenditures in accordance with Applicable Law. (c) The PEG Fee is not part of the Franchise Fee and instead falls within one or more of the exceptions in 47 U.S.C. § 542, unless the PEG Fee is used by City or Commission in violation of Applicable Law. The PEG Fee may be categorized, itemized, and passed through to Subscribers as permissible, in accordance with 47 U.S.C. § 542 or other Applicable Laws. 7.14 PEG Technical Quality and Support. (a) Grantee shall not be required to carry a PEG Channel in a higher quality format than that of the Channel signal delivered to Grantee, but Grantee shall not implement a change in the method of delivery of PEG Channels that results in a material degradation of signal quality or impairment of viewer reception of PEG Channels, provided that this requirement shall not prohibit Grantee from implementing new technologies also utilized for commercial Channels carried on its Cable System. Grantee shall meet FCC signal quality standards when offering PEG Channels on its Cable System and shall continue to comply with closed captioning pass-through requirements. There shall be no significant deterioration in a PEG Channel signal from the point of origination upstream to the point of reception (hub or head-end) or downstream to the Subscriber on the Cable System. (b) Grantee shall provide a local (Twin Cities) response phone number, cell number, and e-mail address for local (Twin Cities) technical support staff who are trained to effectively respond to and resolve PEG related issues. For urgent issues (such as signal problems during live programs) the Grantee will respond as soon as possible. For non- urgent tech support requests the Grantee will respond within three (3) hours or forty-eight (48) hours, depending upon the response time needed. Commission technical staff will determine what requests are urgent or non-urgent. The Commission agrees to use best efforts to verify that the issue is not on the Commission’s side of the demarcation point before a call is made to Grantee. Page 83 (c) Grantee agrees to continue its practice of providing to the Commission three (3) satellite feeds from Grantee’s headend facility and/or hub site locations directly to the Commission’s Playback Facility without charge to Commission. The Commission shall be responsible for obtaining any necessary carriage and license agreements for the programming aired on its PEG Channels to the extent the content providers require such agreements. The Commission shall pay any license fees, copyright fees and other costs of the programming provider. If Grantee receives a demand to cease and desist from providing any programming content to the Commission under this section or the source of the programming ceases to operate, Grantee may terminate such programming immediately without prior notice, but will provide notice that such programming has been terminated as soon as possible. If Grantee ceases to maintain the satellite reception facility through which the programming is received, Grantee will give the Commission sixty (60) days prior notice of the discontinuation to allow the Commission to obtain the programming from another source. 7.15 Change in Technology. In the event Grantee makes any change in the Cable System and related equipment and facilities or in its signal delivery technology, which requires the City to obtain new equipment in order to be compatible with such change for purposes of transport and delivery of the PEG Channels, Grantee shall, at its own expense and without charge to the City or its designated entities, purchase such equipment as may be necessary to facilitate the cablecasting of the PEG Channels in accordance with the requirements of the Franchise. 7.16 Relocation of Grantee’s Headend. In the event Grantee relocates its headend, Grantee will be responsible for replacing or restoring the existing dedicated fiber connections at Grantee’s cost so that all functions and capacity remain available, operate reliably and satisfy all applicable technical standards and related obligations of the Franchise without charge to the City or its designated entities. 7.17 Regional Channel Six. Grantee shall make available Regional Channel Six as long as it is required to do so by Applicable Law. 7.18 Compliance with Minnesota Statutes Chapter 238. In addition to the requirements contained in this Section 7 of this Franchise, Grantee and City shall comply with the PEG requirements mandated by Minn. Stat. § 238.084. SECTION 8 REGULATORY PROVISIONS 8.1 Intent. The City shall have the right to administer and regulate activities under the Franchise to the full extent permitted by Applicable Law. The City may delegate to any other body or Person authority to administer the Franchise and to monitor the performance of Grantee pursuant to the Franchise. Grantee shall cooperate with any such delegates of the City. 8.2 Delegation of Authority to Regulate. The City reserves the right to delegate its regulatory authority wholly or in part to another governmental entity, including, but not limited to, an entity which may be formed to regulate several franchises in the region in a manner consistent with Applicable Laws. As of the Effective Date of this Franchise, the Commission shall have Page 84 continuing regulatory jurisdiction and supervision over the Cable System and Grantee’s operation under the Franchise. 8.3 Regulation of Rates and Charges. (a) Right to Regulate. The City reserves the right to regulate rates or charges for any Cable Service within the limits of Applicable Law, to enforce rate regulations prescribed by the FCC, and to establish procedures for said regulation or enforcement. (b) Notice of Change in Rates and Charges. Throughout the term of this Franchise, Grantee shall give the City and all Subscribers within the City at least thirty (30) Days’ notice of any intended modifications or additions to Subscriber rates or charges. Nothing in this subsection shall be construed to prohibit the reduction or waiving of rates or charges in conjunction with promotional campaigns for the purpose of attracting Subscribers or users. (c) Rate Discrimination Prohibited. Within any category of Subscribers, Grantee shall not discriminate among Subscribers with regard to rates and charges made for any service based on considerations of race, color, creed, sex, marital or economic status, national origin, sexual preference, or (except as allowed by Applicable Law) neighborhood of residence, except as otherwise provided herein; and for purposes of setting rates and charges, no categorization of Subscribers shall be made by Grantee on the basis of those considerations. Nevertheless, Grantee shall be permitted to establish (1) discounted rates and charges for providing Cable Service to low-income, disabled, or low-income elderly Subscribers, (2) promotional rates, and (3) bulk rate and package discount pricing. SECTION 9 BOND 9.1 Performance Bond. (a) Upon the Effective Date of this Franchise and at all times thereafter until the Grantee has liquidated all of its obligations under this Franchise, the Grantee shall furnish and file with Commission, on behalf of all Member Cities, a bond in the sum of One Hundred Thousand and No/100 Dollars ($100,000.00) in such form and with such sureties as shall be acceptable to the Commission (“Bond”). The Bond shall be conditioned upon the faithful performance by Grantee of this Franchise and upon the further condition that in the event Grantee shall fail to comply with any law, ordinance or regulation, there shall be recoverable jointly and severally from the principal and surety of the Bond, any damages or losses suffered by City as a result, including the full amount of any compensation, indemnification or cost of removal of any property of Grantee, including a reasonable allowance for attorneys’ fees and costs (with interest at prime rate plus two percent (2%)), up to the full amount of the Bond, and which Bond shall further guarantee payment by Grantee of all claims and liens against City, or any public property, and taxes due to City, which arise by reason of the construction, operation, maintenance or use of the Cable System. 9.2 Rights. The rights reserved by City with respect to the Bond are in addition to all other rights the City may have under this Franchise or any other law. Page 85 9.3 Reduction of Bond Amount. City may, in its sole discretion, reduce the amount of the Bond. 9.4 Procedure to Draw on Bond. (a) The parties shall follow the procedure set forth in Section 11.1 of this Franchise regarding any draw on the Bond. (b) In the event this Franchise is terminated in accordance with the procedure set forth in Section 11, the City shall be entitled to collect from the Bond that amount which is attributable to any damages sustained by the City as a result of said violation. (c) Grantee shall be entitled to the return of the Bond, or portion thereof, as remains one hundred and twenty (120) Days after the expiration of the term of the Franchise or termination for violation thereof, provided the City has not notified Grantee of any actual or potential damages incurred as a result of Grantee’s operations pursuant to the Franchise or as a result of said violation. (d) The rights reserved to the City with respect to the Bond are in addition to all other rights of the City whether reserved by this Franchise or authorized by law, and no action, proceeding or exercise of a right with respect to the Bond shall affect any other right the City may have. SECTION 10 SECURITY FUND 10.1 Security Fund. Within thirty (30) Days of the Effective Date, Grantee shall establish and provide to the City or the Commission, on behalf of the City, as security for the faithful performance by Grantee of all provisions of this Franchise, an irrevocable letter of credit from a financial institution satisfactory to the City or the Commission in the amount of Twenty-Five Thousand and No/100 Dollars ($25,000.00) (“Security Fund”). Failure to post the Security Fund shall constitute a material violation of this Franchise. The Security Fund shall serve as security for the faithful performance by Grantee of all the provisions of this Franchise and compliance with all orders, permits and directions of the City and the payment by Grantee of any claim, liens, costs, expenses and taxes due the City which arise by reason of the construction, operation or maintenance of the Cable System. The obligation to establish the Security Fund required by this paragraph is unconditional. If Grantee fails to establish the Security Fund as required, the City may take whatever action is appropriate to require the establishment of that Security Fund and may recover its costs, reasonable attorneys’ fees, and an additional penalty of Five Thousand Dollars ($5,000) in that action. 10.2 Withdrawal of Funds. The Security Fund shall permit the City to withdraw funds upon demand (sight draft). Grantee shall not use the Security Fund for other purposes and shall not assign, pledge or otherwise use this Security Fund as security for any other purpose. 10.3 Liquidated Damages. In addition to recovery of any monies owed by Grantee to City or damages to City as a result of any acts or omissions by Grantee pursuant to the Franchise, City in its sole discretion may charge to and collect from the Security Fund the following liquidated damages: Page 86 (a) For failure to provide data, documents, reports or information or to cooperate with City during an application process, audit, or System review, the liquidated damage shall be Two Hundred Fifty Dollars ($250.00) per Day for each Day, or part thereof, such failure occurs or continues. (b) For failure to comply with any of the provisions of this Franchise for which a penalty is not otherwise specifically provided pursuant to this Section 10.3, the liquidated damage shall be Two Hundred Fifty Dollars ($250.00) per Day for each Day, or part thereof, such failure occurs or continues. (c) For failure of Grantee to comply with construction, operation or maintenance standards, the liquidated damage shall be Five Hundred Dollars ($500.00) per Day for each Day, or part thereof, such failure occurs or continues. (d) For failure to provide the services Grantee has proposed, including but not limited to the implementation and the utilization of the PEG Channels, the liquidated damage shall be Two Hundred Fifty Dollars ($250.00) per Day for each Day, or part thereof, such failure occurs or continues. 10.4 Each Violation a Separate Violation. Each violation of any provision of this Franchise shall be considered a separate violation for which separate liquidated damages can be imposed. However, to the extent City remains a Member City of Commission, liquidated damages under Section 10.3 for a violation of each Member City franchise shall be calculated by the Commission as one violation, and not as multiple violations (one violation for each individual Member City franchise). For example, liquidated damages per Day under section 10.3(a) would equal Two Hundred Fifty Dollars ($250.00), not One Thousand Seven Hundred Fifty Dollars ($1,750) (seven times the per Day liquidated damages amount). 10.5 Maximum Draw Per Violation. Any liquidated damages for any given violation shall be imposed upon Grantee for a maximum of Twenty-Five Thousand and No/100 Dollars ($25,000.00). If after that amount of draw from the Security Fund Grantee has not cured or commenced to cure the alleged breach to the satisfaction of the City, the City may pursue all other remedies. 10.6 Withdrawal of Funds to Pay Taxes. If Grantee fails to pay to the City any taxes due and unpaid; or fails to repay to the City, any damages, costs or expenses which the City shall be compelled to pay by reason of any act or default of the Grantee in connection with this Franchise; or fails, after thirty (30) Days’ notice of such failure by the City to comply with any provision of the Franchise which the City reasonably determines can be remedied by an expenditure of the Security Fund, the City may then draw from the Security Fund. Payments are not Franchise Fees as defined in Section 16 of this Franchise. 10.7 Procedure for Draw on Security Fund. The parties shall follow the procedure set forth in Section 11.1 of this Franchise regarding any withdrawal from the Security Fund. 10.8 Grantee’s Right to Pay Prior to Security Fund Draw. Grantee shall have the opportunity to make prompt payment of any assessed liquidated damages and if Grantee fails to Page 87 promptly remit payment to the City, the City may resort to a draw from the Security Fund in accordance with the terms of this Franchise. 10.9 Failure to Establish Security Fund. City may draw on said Security Fund for the whole amount thereof and hold the proceeds, without interest, and use the proceeds to pay costs incurred by City in performing and paying for any or all of the obligations, duties and responsibilities of Grantee under this Franchise that are not performed or paid for by Grantee pursuant hereto, including attorneys’ fees incurred by the City in so performing and payin g. The failure to establish a Security Fund under section 10.1 may also, at the option of City, be deemed a violation by Grantee under this Franchise. The drawing on the Security Fund by City, and use of the money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such violation. 10.10 Replenishment of Security Fund. If Commission or City exhaust the Security Fund under Section 10.5 during a given violation proceeding, Grantee shall have no obligation to replenish the Security Fund for such violation proceeding. However, Grantee must replenish the Security Fund as security for any future franchise violation. If the amount of the Security Fund established under Section 10.1 is not enough to secure the performance of the obligations described in Section 10.1, then the City or the Commission must resort to the Bond provided in Section 9 or other enforcement mechanisms provided under Section 11. 10.11 Collection of Funds Not Exclusive Remedy. The collection by City of any damages or monies from the Security Fund shall not affect any other right or remedy available to City, nor shall any act, or failure to act, by City pursuant to the Security Fund, be deemed a waiver of any right of City pursuant to this Franchise or otherwise. Notwithstanding this section, however, should the City elect to impose liquidated damages, that remedy shall remain the City’s exclusive remedy for the one hundred twenty (120) Day period set forth in Section 10.5. SECTION 11 VIOLATION PROCEDURE 11.1 Basis for Violation. City or Commission shall give written notice to Grantee if City, in its sole discretion, determines that Grantee has: (a) Violated any material provision of this Franchise or the acceptance hereto; (b) Violated any law, ordinance, rule, order, regulation or determination of the City, state or federal government, not in conflict with this Franchise; (c) Attempted to evade any provision of this Franchise or the acceptance hereof; (d) Practiced any fraud or deceit upon City or Subscribers; (e) Made a material misrepresentation of fact in the application for or negotiation of this Franchise; or 11.2 Violation Procedure. The written notice shall describe in reasonable detail the alleged violation so as to afford Grantee an opportunity to remedy the violation. Page 88 (a) Grantee shall have thirty (30) Days subsequent to receipt of the notice in which to correct the violation (or if such violation is of such a character as to require more than thirty (30) Days within which to cure the same, and Grantee fails to commence to cure the same within said thirty (30) Day period and thereafter fails to use reasonable diligence, in City’s sole opinion, to cure such violation as soon as possible). (b) Grantee may, within ten (10) Days of receipt of notice, notify the City that there is a dispute as to whether a violation or failure has, in fact, occurred. Such notice by Grantee shall specify with particularity the matters disputed by Grantee and shall stay the running of the above-described time until the Commission or City issues final findings of fact with respect to the violation. However, all penalties shall accrue from the date of the notice of violation until the Commission or City issues final findings of fact with respect to the violation. (c) The City or Commission shall hear Grantee’s dispute at the next regularly scheduled or specially scheduled meeting. Grantee shall have the right to speak and introduce evidence. The City or Commission shall determine whether Grantee has committed a violation and shall make written findings of fact relative to its determination. (d) If after hearing the dispute, the violation is upheld by the City or Commission, then Grantee shall have thirty (30) Days within which to remedy the violation. (e) If Grantee fails to cure the violation within thirty (30) Days, such violation shall be a substantial breach and City may elect to terminate the Franchise, or establish and draw on the Bond or Security Fund as provided in Sections 9 or 10. (f) The City may place the issue of termination of this Franchise before the governing body of City at a regular meeting. If City decides there is cause or reason to terminate, the following procedure shall be followed: (i) City shall provide Grantee with a written notice of the reason or cause for proposed termination and shall allow Grantee a minimum of thirty (30) Days subsequent to receipt of the notice in which to correct the violation. (ii) Grantee shall be provided with an opportunity to be heard at a public hearing prior to any decision to terminate this Franchise. (iii) If, after notice is given and an opportunity to cure, at Grantee’s option, a public hearing is held, and the City determines there was a violation, breach, failure, refusal or neglect, the City may declare by resolution the Franchise terminated and of no further force and effect unless there is compliance within such period as the City may fix, such period may not be less than thirty (30) Days. No opportunity for compliance need be granted for fraud or misrepresentation. 11.3 Failure to Enforce. Grantee shall not be relieved of any of its obligations to comply promptly with any provision of the Franchise by reason of any failure of the City to enforce prompt compliance, and City’s failure to enforce shall not constitute a waiver of rights or acquiescence in Grantee’s conduct. Page 89 11.4 Compliance with the Laws. (a) If any federal or state law or regulation shall require or permit City or Grantee to perform any service or act or shall prohibit City or Grantee from performing any service or act which may be in conflict with the terms of this Franchise, then as soon as possible following knowledge thereof, either party shall notify the other of the point in conflict believed to exist between such law or regulation. Grantee and City shall conform to state laws and rules regarding cable communications not later than one (1) year after they become effective, unless otherwise stated, and shall conform to federal laws and regulations regarding cable as they become effective. (b) If any term, condition or provision of this Franchise or the application thereof to any Person or circumstance shall, to any extent, be held to be invalid or unenforceable, the remainder hereof and the application of such term, condition or provision to Persons or circumstances other than those as to whom it shall be held invalid or unenforceable shall not be affected thereby, and this Franchise and all the terms, provisions and conditions hereof shall, in all other respects, continue to be effective and complied with, provided the loss of the invalid or unenforceable clause does not substantially alter the agreement between the parties. In the event such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that the provision which had been held invalid or modified is no longer in conflict with the law, rules and regulations then in effect, said provision shall thereupon return to full force and effect and shall thereafter be binding on Grantee and City. SECTION 12 FORECLOSURE AND RECEIVERSHIP 12.1 Foreclosure. Upon the foreclosure or other judicial sale of the Cable System, Grantee shall notify the City of such fact and such notification shall be treated as a notification that a change in control of Grantee has taken place, and the provisions of this Franchise governing the consent to transfer or change in ownership shall apply without regard to how such transfer or change in ownership occurred. 12.2 Receivership. The City shall have the right to cancel this Franchise subject to any applicable provisions of state law, including the Bankruptcy Act, one hundred twenty (120) Days after the appointment of a receiver or trustee to take over and conduct the business of Grantee, whether in receivership, reorganization, bankruptcy or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120) Days, or unless: (a) Within one hundred twenty (120) Days after his election or appointment, such receiver or trustee shall have fully complied with all the provisions of this Franchise and remedied all defaults thereunder; and, (b) Such receiver or trustee, within said one hundred twenty (120) Days, shall have executed an agreement, duly approved by the Court having jurisdiction in the premises, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this Franchise. Page 90 SECTION 13 REPORTING REQUIREMENTS 13.1 Quarterly Reports. Within thirty (30) Days after the end of each calendar quarter, Grantee shall submit to the City along with its Franchise Fee payment, a report showing the basis for computation of the Franchise Fee and PEG Fee payments signed by an authorized representative of Grantee in form and substance substantially equivalent to Exhibit D attached hereto. This report shall separately indicate Grantee’s Gross Revenues within the City including, but not limited to such items as listed in the definition of “Gross Revenues” at Section 1.22 of this Franchise. Nothing in the Franchise Fee payment worksheet form set forth in Exhibit D shall be construed to modify the definition of “Gross Revenues” set forth in Section 1.21 of this Franchise. 13.2 Monitoring and Compliance Reports. Upon request, but no more than once a year, Grantee shall provide a written report of any and all FCC technical performance tests for the residential network required in FCC Rules and Regulations as now or hereinafter constituted. 13.3 Monthly Subscriber Data Report. Every other month starting in January, Grantee shall provide the City with a Subscriber data report consistent with the format set forth in Exhibit E attached hereto. In the event technical or programming changes require changes to the format of the report, the City and Grantee shall work in good faith to make such changes without the need to amend this Franchise. 13.4 Other Reports. Upon request of the City and in no event later than thirty (30) Days from the date of receipt of such request, Grantee shall, without charge, prepare and furnish to the City, at the times and in the form prescribed, such additional reports with respect to its operation, affairs, transactions, or property, as may be reasonably necessary to ensure compliance with the terms of this Franchise. Grantee and City may in good faith agree upon taking into consideration Grantee’s need for the continuing confidentiality as prescribed herein. Neither City nor Grantee shall unreasonably demand or withhold information requested pursuant with the terms of this Franchise. 13.5 Confidential and Trade Secret Information. Grantee acknowledges that information submitted by Grantee to the City may be subject to the Minnesota Government Data Practices Act (“MGDPA”) pursuant to Minn. Stat. Chapter 13. The Commission shall follow all Applicable Laws and procedures for protecting any confidential and trade secret information of Grantee that may be provided to Commission. Grantee acknowledges that the Commission shall at all times comply with the Minnesota Data Practices Act (“MDPA”) related to the release of information and nothing herein shall be read to modify the Commission’s obligations under the MDPA. 13.6 Communications with Regulatory Agencies. (a) Upon written request (unless service of copies is otherwise mandated by Applicable Law) Grantee shall submit to City copies or online links to copies of any pleading, applications, notifications, communications and documents of any kind, submitted by Grantee or its Affiliates to any federal, state or local courts, regulatory agencies and other government bodies if such documents directly relate to the operations of Grantee’s Cable System within the Franchise Area. Grantee shall submit such documents to City no later than thirty (30) Days after receipt of City’s request. Grantee and City shall comply with Page 91 all Applicable Law governing confidential, privileged or proprietary rights to such documents. (b) In addition, Grantee and its Affiliates, City and Commission shall, within ten (10) Days of any communication to or from any judicial or regulatory agency regarding any alleged or actual violation of this Franchise, City regulation or other requirement relating to the System, use its best efforts to provide the other party a copy of the communication, whether or not specifically requested to do so. SECTION 14 CUSTOMER SERVICE POLICIES 14.1 Response to Customers and Cooperation with City and Commission. Grantee shall promptly respond to all requests for service, repair, installation and information from Subscribers. Grantee acknowledges the City’s interest in the prompt resolution of all cable complaints and shall work in close cooperation with the City to resolve complaints. Grantee shall provide the Commission and the City with the name, address and telephone number of an office that will act as the Grantee’s agent to receive complaints, regarding quality of service, equipment malfunctions, billings, and similar matters. Grantee will maintain an “escalated complaint process” to address unresolved complaints from Subscribers. A team of specifically identified employees of Grantee shall be available to the City and the Commission via email and telephone for reporting issues. These specifically identified employees of Grantee will have the ability to take actions to resolve Subscriber complaints relating to billing, property or service restoration, technical appointments, or any other Subscriber matters when necessary. Grantee will follow-up with the City or the Commission in writing by email (and by phone when necessary) with a summary of the results of the complaint(s). 14.2 Customer Service Agreement and Written Information. Grantee shall provide to Subscribers access to their service agreement and the following information if not included in the service agreement: (a) Services to be provided and rates for such services. (b) Billing procedures. (c) Service termination procedure. (d) Change in service notifications. (e) Converter/Subscriber terminal equipment policy. (f) How complaints are handled including Grantee’s procedure for investigation and resolution of Subscriber complaints. (g) The name, address, and phone number of the Person identified by the City as responsible for handling cable questions and complaints for the City. This information shall be prominently displayed and Grantee shall submit the information to the City for review and approval as to its content and placement on Subscriber billing statements. A Page 92 copy of the written information shall be provided to each Subscriber at the time of initial connection and any subsequent reconnection. 14.3 Customer Service Standards. (a) The City hereby adopts the customer service standards set forth in Part 76, §76.309 of the FCC’s rules and regulations, as amended. (b) Grantee shall provide City with information demonstrating Grantee’s compliance with each and every term and provision of Section 14.5. (c) Grantee shall comply in all respects with the customer service requirements established by the FCC and those set forth herein. The City reserves the right to enact additional consumer protection laws or requirements to the extent such requirements are not inconsistent with, and preempted by, the FCC’s customer service standards. 14.4 Local Office. Grantee shall maintain a convenient local customer service and bill payment location for matters such as receiving Subscriber payments, handling billing questions, equipment replacement and customer service information. 14.5 Cable System office hours and telephone availability. Grantee shall comply with the standards and requirements for customer service set forth below during the term of this Franchise. (a) Grantee will maintain a local, toll-free telephone access line which will be available to its Subscribers twenty-four (24) hours a Day, seven (7) days a week. (i) Trained Grantee representatives will be available to respond to customer telephone inquiries during Normal Business Hours. (ii) The access line may be initially answered by an interactive voice response system but a Subscriber, under Normal Operating Conditions, shall have the option to speak to a trained Grantee representative during Normal Business Hours. Inquiries received after Normal Business Hours must be responded to by a trained Grantee representative on the next business day. (b) Under Normal Operating Conditions, telephone answer time by a customer representative, including wait time, shall not exceed thirty (30) seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met no less than ninety percent (90%) of the time under Normal Operating Conditions, measured on a quarterly basis. (c) Grantee shall not be required to acquire equipment or perform surveys to measure compliance with the telephone answering standards above unless an historical record of complaints indicates a clear failure to comply. (d) Under Normal Operating Conditions, the customer will receive a busy signal less than three percent (3%) of the time. Page 93 (e) Customer service center and bill payment locations will be open at least during Normal Business Hours and will be conveniently located. (f) The Grantee shall utilize such equipment and software and keep such records as are necessary or required to enable the City and Commission to determine whether the Grantee is complying with all telephone answering standards required by applicable customer service regulations and laws, as amended from time to time. The Grantee shall provide the Commission with a quarterly report documenting Grantee’s compliance with this Section 14.5 as is the current practice. 14.6 Installations, Outages and Service Calls. Under Normal Operating Conditions, each of the following standards will be met no less than ninety-five percent (95%) of the time measured on a quarterly basis: (a) Standard Installations will be performed within seven (7) business days after an order has been placed. “Standard” Installations are those that are located up to one hundred twenty-five (125) feet from the existing distribution system as more specifically set forth in Section 6.7(b). (b) Excluding conditions beyond the control of Grantee, Grantee will begin working on “service interruptions” promptly and in no event later than twenty-four (24) hours after the interruption becomes known. Grantee must begin actions to correct other Service problems the next business day after notification of the Service problem. (c) The “appointment window” alternatives for installations, Service calls, and other installation activities will be either a specific time or, at maximum, a four (4) hour time block during Normal Business Hours. (Grantee may schedule Service calls and other installation activities outside of Normal Business Hours for the express convenience of the customer.) (d) Grantee may not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment. (e) If Grantee’s representative is running late for an appointment with a customer and will not be able to keep the appointment as scheduled, the customer will be contacted. The appointment will be rescheduled, as necessary, at a time which is convenient for the customer. 14.7 Communications between Grantee and Subscribers. (a) Refunds. Refund checks will be issued promptly, but no later than either: (i) The customer’s next billing cycle following resolution of the request or thirty (30) Days, whichever is earlier, or (ii) The return of the equipment supplied by Grantee if Cable Service is terminated. Page 94 (b) Credits. Credits for Cable Service will be issued no later than the customer’s next billing cycle following the determination that a credit is warranted. 14.8 Billing: (a) Consistent with 47 C.F.R. § 76.1619, bills will be clear, concise and understandable. Bills must be fully itemized, with itemizations including, but not limited to, Basic Cable Service and premium Cable Service charges and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. (b) In case of a billing dispute, Grantee must respond to a written complaint from a Subscriber within thirty (30) Days. 14.9 Subscriber Information. (a) Grantee will provide Subscribers access to the following information at any time: (i) Products and Services offered; (ii) Prices and options for programming services and conditions of subscription to programming and other services; (iii) Installation and Service maintenance policies; (iv) Instructions on how to use the Cable Service; (v) How to find or purchase programming carried on the System; (vi) Billing and complaint procedures, including the address and telephone number of the Commission’s office; and (vii) A copy of its refund policy for Cable Services. (b) Subscribers shall be advised of the procedures for resolution of complaints about the quality of the television signal delivered by Grantee, including contact information for the City and the Commission. Subscribers will be notified of any changes in rates or programming or Channel positions as soon as possible in writing. Notice must be given to Subscribers a minimum of thirty (30) Days in advance of such changes if the change is within the control of Grantee. In addition, Grantee shall notify Subscribers thirty (30) Days in advance of any significant changes in the information required by this Section 14.9. 14.10 Notice of Rate or Programming Changes. Grantee shall give thirty (30) Days written notice to both Subscribers and the City before implementing any rate or Service change within the control of Grantee. For the purpose of this section a “Service change” shall not include channel additions or moves that do not impact rates. Such notice shall state the precise amount of any rate change and briefly explain in readily understandable fashion the cause of the rate change. When the change involves the deletion of Channels, each Channel deleted must be separately identified. Page 95 14.11 Subscriber Contracts. Grantee shall, upon written request, provide the Commission with any standard form residential Subscriber contract utilized by Grantee. If no such written contract exists, Grantee shall file with the City a document completely and concisely stating the length and terms of the Subscriber contract offered to customers. Grantee shall provide City a list of Grantee’s current Subscriber rates and charges for Cable Service and a current Channel line-up showing all Channels available in the City. Grantee shall also provide on a monthly basis a copy of a sample Subscriber Bill to the Commission. 14.12 Refund Policy. If a Subscriber’s Cable Service is interrupted or discontinued, without cause, for twenty-four (24) or more consecutive hours, Grantee shall, upon request by the Subscriber, credit such Subscriber pro rata for such interruption. For this purpose, every month will be assumed to have thirty (30) Days. 14.13 Late Fees. Grantee shall comply with all applicable state and federal laws with respect to any assessment, charge, cost, fee or sum, however characterized, that Grantee imposes upon a Subscriber for late payment of a bill. The City reserves the right to enforce Grantee’s compliance with all Applicable Laws to the maximum extent legally permissible. 14.14 Disputes. All Subscribers and members of the general public may direct complaints, regarding Grantee’s Service or performance to the chief administrative officer of the City or the chief administrative officer’s designee, which may be a board or a commission of the City. 14.15 Subscriber Bills. Subscriber bills shall be designed in such a way as to present the information contained therein clearly and comprehensibly to Subscribers, and in a way that (A) is not misleading and (B) does not omit material information. Grantee may, in its sole discretion, consolidate costs on Subscriber bills as may otherwise be permitted by Section 622(c) of the Cable Act (47 U.S.C. § 542(c)). 14.16 Failure to Resolve Complaints. Grantee shall resolve a complaint within thirty (30) Days in a manner deemed reasonable by the City under the terms of the Franchise. 14.17 Notification of Complaint Procedure. Grantee shall have printed clearly and prominently on each Subscriber bill and in the customer service agreement provided for in Section 14.2, the twenty-four (24) hour Grantee phone number for Subscriber complaints. Additionally, Grantee shall provide information to customers concerning the procedures to follow when they are unsatisfied with measures taken by Grantee to remedy their complaint. This information will include the phone number of the City office or Person designated to handle complaints. Additionally, Grantee shall state that complaints should be made to Grantee prior to contacting the City. 14.18 Subscriber Privacy. (a) To the extent required by Minn. Stat. § 238.084 Subd. 1(s) Grantee shall comply with the following: (i) No signals including signals of a Class IV Channel may be transmitted from a Subscriber terminal for purposes of monitoring individual viewing patterns or practices without the express written permission of the Subscriber. The request for Page 96 permission must be contained in a separate document with a prominent statement that the Subscriber is authorizing the permission in full knowledge of its provisions. Such written permission shall be for a limited period of time not to exceed one (1) year which may be renewed at the option of the Subscriber. No penalty shall be invoked for a Subscriber’s failure to provide or renew such permission. The permission shall be revocable at any time by the Subscriber without penalty of any kind whatsoever. (ii) No information or data obtained by monitoring transmission of a signal from a Subscriber terminal, including but not limited to lists of the names and addresses of Subscribers or any lists that identify the viewing habits of Subscribers shall be sold or otherwise made available to any party other than to Grantee or its agents for Grantee’s business use, and also to the Subscriber subject of that information, unless Grantee has received specific written permission from the Subscriber to make such data available. The request for permission must be contained in a separate document with a prominent statement that the Subscriber is authorizing the permission in full knowledge of its provisions. Such written permission shall be for a limited period of time not to exceed one (1) year which may be renewed at the option of the Subscriber. No penalty shall be invoked for a Subscriber’s failure to provide or renew such permission. The permission shall be revocable at any time by the Subscriber without penalty of any kind whatsoever. (iii) Written permission from the Subscriber shall not be required for the conducting of system wide or individually addressed electronic sweeps for the purpose of verifying System integrity or monitoring for the purpose of billing. Confidentiality of such information shall be subject to the provision set forth in subparagraph (ii) of this section. 14.19 Grantee Identification. Grantee shall provide all customer service technicians and all other Grantee employees entering private property with appropriate picture identification so that Grantee employees may be easily identified by the property owners and Subscribers. SECTION 15 SUBSCRIBER PRACTICES 15.1 Subscriber Rates. There shall be no charge for disconnection of any installation or outlet. If any Subscriber fails to pay a properly due monthly Subscriber fee, or any other properly due fee or charge, Grantee may disconnect the Subscriber’s service outlet, provided, however, that such disconnection shall not occur until after the later of: (i) forty-five (45) Days after the original due date of said delinquent fee or charge; or (ii) ten (10) Days after delivery to Subscriber of written notice of the intent to disconnect. If a Subscriber pays before expiration of the later of (i) or (ii), Grantee shall not disconnect. After disconnection, upon payment in full of the delinquent fee or charge and the payment of a reconnection charge, Grantee shall promptly reinstate the Subscriber’s Cable Service. Page 97 15.2 Refunds to Subscribers shall be made or determined in the following manner: (a) If Grantee fails, upon request by a Subscriber, to provide any service then being provided to the Subscriber, Grantee shall promptly refund all deposits or advance charges paid for the service in question by said Subscriber. This provision does not alter Grantee’s responsibility to Subscribers under any separate contractual agreement or relieve Grantee of any other liability that may be available under Applicable Law. (b) If any Subscriber terminates any monthly service because of failure of Grantee to render the service in accordance with this Franchise, Grantee shall refund to such Subscriber the proportionate share of the charges paid by the Subscriber for the services not received. This provision does not relieve Grantee of liability established in other provisions of this Franchise. SECTION 16 COMPENSATION AND FINANCIAL PROVISIONS 16.1 Franchise Fees. During the term of the Franchise, Grantee shall pay quarterly to the City or its delegate a Franchise Fee in an amount equal to five percent (5%) of its quarterly Gross Revenues. If any such law, regulation or valid rule alters the five percent (5%) Franchise Fee ceiling established by the Cable Act, then the City shall have the authority to (but shall not be required to) increase the Franchise Fee accordingly, provided such increase is for purposes not inconsistent with Applicable Law. (a) Franchise Fees shall be paid quarterly not later than forty-five (45) Days following the end of each quarter. Grantee shall include with each quarterly payment a Franchise Fee payment worksheet, in form and substance substantially similar to Exhibit D, signed by an authorized representative of Grantee. No acceptance of any payment shall be construed as an accord that the amount paid is in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any claim which the City may have for further or additional sums payable under the provisions of this section. (b) Neither current nor previously paid Franchise Fees shall be subtracted from the Gross Revenue amount upon which Franchise Fees are calculated and due for any period, unless otherwise required by Applicable Law. (c) Any Franchise Fees owing pursuant to this Franchise which remain unpaid after the due dates specified herein shall be delinquent and shall immediately begin to accrue interest at twelve percent (12%) per annum or two percent (2%) above prime lending rate as quoted by the Wall Street Journal, whichever is greater. 16.2 Auditing and Financial Records. Throughout the term of this Franchise, the Grantee agrees that the City or its designee, upon reasonable prior written notice of twenty (20) Days to the Grantee, may review such of the Grantee’s books and records regarding the operation of the Cable System and the provision of Cable Service in the Franchise Area which are reasonably necessary to monitor and enforce Grantee’s compliance with the provisions of this Franchise. Grantee shall provide such requested information as soon as possible and in no event more than twenty (20) Days unless Grantee explains that it is not feasible to meet this timeline and provides a written explanation for the delay and an estimated reasonable date for when such information Page 98 will be provided. All such documents pertaining to financial matters that may be the subject of an inspection by the City shall be retained by the Grantee for a minimum period of seven (7) years, pursuant to Minn. Stat. § 541.05. The Grantee shall not deny the City access to any of the Grantee’s records on the basis that the Grantee’s records are under the control of any parent corporation, affiliated entity or a third party. The City may request in writing copies of any such records or books that are reasonably necessary, and the Grantee shall provide such copies within thirty (30) Days of the receipt of such request. One (1) copy of all reports and records required under this or any other section shall be furnished to the City at the sole expense of the Grantee. If the requested books and records are too voluminous, or for security reasons cannot be copied or removed, then the Grantee may request, in writing within ten (10) Days of receipt of such request, that the City inspect them at the Grantee’s local offices or at one of Grantee’s offices more convenient to City or its duly authorized agent. If any books or records of the Grantee are not kept in such office and not made available in copies to the City upon written request as set forth above, and if the City determines that an examination of such records is necessary for the enforcement of this Franchise, then all reasonable travel expenses incurred in making such examination shall be paid by the Grantee. 16.3 Review of Record Keeping Methodology. Upon request, Grantee agrees to meet with a representative of the City or its designee to review its methodology of record-keeping, financial reporting, computing Franchise Fee obligations, and other procedures the understanding of which the City deems necessary for understanding the meaning of reports and records. 16.4 Audit of Records. The City or its authorized agent may at any time and at the City’s own expense conduct an independent audit of the revenues of Grantee in order to verify the accuracy of Franchise Fees or PEG Fees paid to the City. Grantee and each parent company of Grantee shall cooperate fully in the conduct of such audit. In the event it is determined through such audit that Grantee has underpaid Franchise Fees in an amount of five percent (5%) or more than was due the City, then Grantee shall reimburse the City for the entire cost of the audit within thirty (30) Days of the completion and acceptance of the audit by the City. 16.5 Records to be reviewed. The City agrees to request access to only those books and records, in exercising its rights under this section, which it deems reasonably necessary for the enforcement and administration of the Franchise. 16.6 Indemnification by Grantee. Grantee shall, at its sole expense, fully indemnify, defend and hold harmless the City and Commission, and in their capacity as such, the officers, agents and employees thereof (collectively the “Indemnified Parties”), from and against any and all claims, suits, actions, demands, liability and judgments for damage or otherwise except those arising wholly from negligence on the part of the Indemnified Parties; for actual or alleged injury to Persons or property, including loss of use of property due to an occurrence, whether or not such property is physically damaged or destroyed, in any way arising out of or through or alleged to arise out of or through the acts or omissions of Grantee or its officers, agents, employees, or contractors or to which Grantee’s or its officers, agents, employees or contractors acts or omissions in any way contribute, and whether or not such acts or omissions were authorized or contemplated by this Franchise or Applicable Law; arising out of or alleged to arise out of any claim for damages for Grantee’s invasion of the right of privacy, defamation of any Person, firm or corporation, or the violation of infringement of any copyright, trademark, trade name, service mark or patent, or Page 99 of any other right of any Person, firm or corporation; arising out of or alleged to arise out of Grantee’s failure to comply with the provisions of any Applicable Law. Nothing herein shall be deemed to prevent the Indemnified Parties from participating in the defense of any litigation by their own counsel at such parties’ expense. Such participation shall not under any circumstances relieve Grantee from its duty of defense against liability or of paying any judgment entered against the Indemnified Parties. 16.7 Grantee Insurance. Upon the Effective Date, Grantee shall, at its sole expense take out and maintain during the term of this Franchise public liability insurance with a company licensed to do business in the State of Minnesota with a rating by A.M. Best & Co. of not less than “A-” that shall protect the Grantee, City and its officials, officers, directors, employees and agents from claims which may arise from operations under this Franchise, whether such operations be by the Grantee, its officials, officers, directors, employees and agents or any subcontractors of Grantee. This liability insurance shall include, but shall not be limited to, protection against claims arising from bodily and personal injury and damage to property, resulting from Grantee’s vehicles, products and operations. The amount of insurance for single limit coverage applying to bodily and personal injury and property damage shall not be less than Three Million Dollars ($3,000,000). The liability policy shall include: (a) The policy shall provide coverage on an “occurrence” basis. (b) The policy shall cover personal injury as well as bodily injury. (c) The policy shall cover blanket contractual liability subject to the standard universal exclusions of contractual liability included in the carrier’s standard endorsement as to bodily injuries, personal injuries and property damage. (d) Broad form property damage liability shall be afforded. (e) City and Commission shall be named as an additional insured on the policy. (f) An endorsement shall be provided which states that the coverage is primary insurance with respect to claims arising from Grantee’s operations under this Franchise and that no other insurance maintained by the City will be called upon to contribute to a loss under this coverage. (g) Standard form of cross-liability shall be afforded. (h) An endorsement stating that the policy shall not be canceled without thirty (30) Days’ notice of such cancellation given to City. (i) City reserves the right to adjust the insurance limit coverage requirements of this Franchise no more than once every three (3) years. Any such adjustment by City will be no greater than the increase in the State of Minnesota Consumer Price Index (all consumers) for such three (3) year period. (j) Upon the Effective Date, Grantee shall submit to City a certificate documenting the required insurance, as well as any necessary properly executed endorsements. The Page 100 certificate and documents evidencing insurance shall be in a form acceptable to City and shall provide satisfactory evidence that Grantee has complied with all insurance requirements. Renewal certificates shall be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such endorsements or certificates or other evidence of insurance, or to advise Grantee of any deficiencies in such documents and receipt thereof shall not relieve Grantee from, nor be deemed a waiver of, City’s right to enforce the terms of Grantee’s obligations hereunder. City reserves the right to examine any policy provided for under this paragraph or to require further documentation reasonably necessary to form an opinion regarding the adequacy of Grantee’s insurance coverage. SECTION 17 MISCELLANEOUS PROVISIONS 17.1 Posting and Publication. Grantee shall assume the cost of posting and publication of this Franchise as such posting and publication is required by law and such is payable upon Grantee’s filing of acceptance of this Franchise. 17.2 Guarantee of Performance. Grantee agrees that it enters into this Franchise voluntarily in order to secure and in consideration of the grant from the City of a ten (10) year Franchise. Performance pursuant to the terms and conditions of this Franchise is guaranteed by Grantee. 17.3 Entire Agreement. This Franchise contains the entire agreement between the parties, supersedes all prior agreements or proposals except as specifically set forth herein. 17.4 Consent. Wherever the consent or approval of either Grantee or the City is specifically required in this agreement, such consent or approval shall not be unreasonably withheld. 17.5 Prior Franchise Terminated. The cable television franchise originally granted by Ordinance No. 353 is hereby terminated. Nothing herein shall serve to waive any rights the parties may have under Ordinance No. 353 regarding: 1) the payment of franchise fees and PEG fees; and 2) Grantee’s compliance with all applicable City Code obligations governing Grantee’s facilities in Streets. 17.6 Franchise Acceptance. No later than thirty (30) Days following City Council approval of this Franchise, Grantee shall execute and return to the City three (3) original franchise agreements. The executed agreements shall be returned to the City accompanied by performance bonds, security funds, and evidence of insurance, all as provided in this Franchise. In the event Grantee fails to provide the required executed Franchise, insurance certificate as required by Section 16(j) and the Bond, this Franchise shall be null and void. The Grantee agrees that despite the fact that its written acceptance may occur after the Effective Date, the obligations of this Franchise shall become effective on the Effective Date. 17.7 Amendment of Franchise. Grantee and City may agree, from time to time, to amend this Franchise. Such written amendments may be made to address technology changes or advances subsequent to a review session pursuant to Section 2.6 or at any other time if City and Grantee agree that such an amendment will be in the public interest or if such an amendment is required due to changes in federal, state or local laws; provided, however, nothing herein shall restrict City’s exercise of its police powers. Page 101 17.8 Notice. All notices, reports, or demands required to be given in writing under this Franchise shall be deemed to be given when delivered personally to any officer of the Grantee or the City’s administrator of this Franchise during Normal Business Hours or forty-eight (48) hours after it is deposited in the United States mail in a sealed envelope, with registered or certified mail postage prepaid thereon, addressed to the party to whom notice is being given, as follows: If to City: City Administrator City of Mendota Heights 1101 Victoria Curve Mendota Heights, Minnesota 55118 If to Commission: Executive Director Northern Dakota County Cable Communications Commission 5845 Blaine Avenue Inver Grove Heights, MN 55076 If to Grantee: General Manager Comcast 10 River Park Plaza St. Paul, MN 55107 Such addresses may be changed by either party upon notice to the other party given as provided in this section. Recognizing the widespread usage and acceptance of electronic forms of communication, emails will be acceptable as formal notification related to the conduct of general business amongst the parties to this contract, including but not limited to programming and price adjustment communications required under section 14.12. Such communication should be addressed and directed to the Person of record as specified above. 17.9 Force Majeure. In the event that either party is prevented or delayed in the performance of any of its obligations, under this Franchise by reason of acts of God, floods, fire, hurricanes, tornadoes, earthquakes, or other unavoidable casualties, insurrection, war, riot, vandalism, strikes, delays in receiving permits where it is not the fault of Grantee, public easements, sabotage, acts or omissions of the other party, or any other similar event beyond the reasonable control of that party, it shall have a reasonable time under the circumstances to perform such obligation under this Franchise, or to procure a substitute for such obligation to the reasonable satisfaction of the other party. 17.10 Work of Contractors and Subcontractors. Work by contractors and subcontractors is subject to the same restrictions, limitations and conditions as if the work were performed by Grantee. Grantee shall be responsible for all work performed by its contractors and subcontractors, and others performing work on its behalf as if the work were performed by it and shall ensure that all such work is performed in compliance with this Franchise, the City Code and other Applicable Law, and shall be jointly and severally liable for all damages and correcting all damage caused by them. It is Grantee’s responsibility to ensure that contractors, subcontractors or other Persons Page 102 performing work on Grantee’s behalf are familiar with the requirements of this Franchise, the City Code and other Applicable Laws governing the work performed by them. 17.11 Governing Law. This Franchise is made pursuant to Minnesota Statutes Chapter 238 and the City Code and is intended to comply with all requirements set forth therein. This Franchise shall be deemed to be executed in the State of Minnesota, and shall be governed in all respects, including validity, interpretation and effect, and construed in accordance with, the laws of the State of Minnesota, as applicable to contracts entered into and performed entirely within the State. 17.12 Commission. In the event the City lawfully withdraws from the Commission, any reference to the Commission in this Franchise shall thereafter be deemed a reference to the City and the rights and obligations related thereto shall, where possible, accrue to the City unless or until a new franchise is executed between Grantee and City. Nothing herein shall in any way modify or alter any rights or obligations the City or Commission may have under the Amended Joint and Cooperative Agreement between the parties. 17.13 Nonenforcement by City. Grantee shall not be relieved of its obligation to comply with any of the provisions of this Franchise by reason of any failure of the City or to enforce prompt compliance. 17.14 Captions. The paragraph captions and headings in this Franchise are for convenience and reference purposes only and shall not affect in any way the meaning of interpretation of this Franchise. 17.15 Calculation of Time. Where the performance or doing of any act, duty, matter, payment or thing is required hereunder and the period of time or duration for the performance is prescribed and fixed herein, the time shall be computed so as to exclude the first and include the last Day of the prescribed or fixed period or duration of time. When the last Day of the period falls on Saturday, Sunday or a legal holiday that Day shall be omitted from the computation and the next business Day shall be the last Day of the period. 17.16 No Waiver. All rights and remedies given to the City by this Franchise or retained by the City herein shall be in addition to and cumulative with any and all other rights and remedies, existing or implied, now or hereafter available to the City, at law or in equity, and such rights and remedies shall not be exclusive, but each and every right and remedy specifically given by this Franchise or otherwise existing or given may be exercised from time to time and as often and in such order as may be deemed expedient by the City and the exercise of one or more rights or remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or remedy. 17.17 Grantee Acknowledgment of Validity of Franchise. Grantee acknowledges that it has had an opportunity to review the terms and conditions of this Franchise and that under current law Grantee believes that said terms and conditions are not unreasonable or arbitrary, and that Grantee believes the City has the power to make the terms and conditions contained in this Franchise. 17.18 Survival of Terms. Upon the termination or forfeiture of the Franchise, Grantee shall no longer have the right to occupy the Streets for the purpose of providing Cable Service. However, Page 103 Grantee’s obligations to the City (other than the obligation to provide service to Subscribers) shall survive according to their terms. 17.19 Competitive Equity. (a) The City reserves the right to grant additional franchises or similar authorizations to provide Video Programming services via Cable Systems or other Wireline MVPDs. The City intends to treat Wireline MVPDs in a nondiscriminatory manner to the extent permissible under Applicable Law. If, following the Effective Date of this Franchise, the City grants such an additional franchise or authorization to a Wireline MVPD and Grantee believes the City has done so on terms materially more favorable than the obligations under this Franchise, then the provisions of this Section 17.21 will apply. (b) As part of this Franchise, the City and Grantee have mutually agreed upon the following terms as a condition of granting the Franchise, which terms may place the Grantee at a significant competitive disadvantage if not required of a Wireline MVPD: the obligation to pay to the City a Franchise Fee, Gross Revenues as provided for and defined in this Franchise, and the obligation to comply with the requirements in this Franchise regarding PEG funding, PEG Channels, records and reports, security instruments, audits, dispute resolution, remedies, notice and opportunity to cure, and customer service obligations (hereinafter “Material Obligations”). The City and Grantee further agree that this provision shall not require a word for word identical franchise or authorization for competitive equity so long as the regulatory and financial burdens on each entity are materially equivalent. (c) Within one (1) year of the adoption of a Wireline MVPD franchise or similar authorization, Grantee must notify the City in writing of the Material Obligations in this Franchise that Grantee believes exceed the Material Obligations of the wireline competitor’s franchise or similar authorization. The City and Grantee agree that they will use best efforts in good faith to negotiate Grantee’s proposed Franchise modifications, and that such negotiation will proceed and conclude within a ninety (90) Day time period, unless that time period is reduced or extended by mutual agreement of the parties. If the City and Grantee reach agreement on the Franchise modifications pursuant to such negotiations, then the City shall amend this Franchise to include the modifications. If the City and Grantee fail to reach agreement in such negotiations, Grantee may, at its option, elect to replace this Franchise by opting into the franchise or other similar lawful authorization that the City grants to another Wireline MVPD (with the understanding that Grantee may use its current system design and technology infrastructure to meet any requirements of the new franchise), so as to ensure that the regulatory and financial burdens on each entity are equivalent. If Grantee so elects, the City shall immediately commence proceedings to replace this Franchise with the franchise issued to the other Wireline MVPD. Notwithstanding anything contained in this section to the contrary, the City shall not be obligated to amend or replace this Franchise unless the new entrant makes Cable Services or similar downstream video programming service available for purchase by Subscribers or customers under its franchise agreement with or similar authorization from the City. Page 104 (d) In the event the City disputes that the Material Obligations are different, Grantee may bring an action in federal or state court for a determination as to whether the Material Obligations are different and as to what franchise amendments would be necessary to remedy the disparity. Alternatively, Grantee may notify the City that it elects to immediately commence the renewal process under 47 U.S.C. § 546 and to have the remaining term of this Franchise shortened to not more than thirty (30) months. (e) Nothing in this Section 17.21 is intended to alter the rights or obligations of either party under applicable federal or state law, and it shall only apply to the extent permitted under Applicable Law and FCC orders. In no event will the City be required to refund or to offset against future amounts due the value of benefits already received. (f) To the extent the City has legal authority to grant a franchise or similar authorization to a wireless provider of Cable Service, the competitive equity rights provided by this section shall apply with respect to Material Obligations imposed in such franchise or other similar agreement. In the event of a dispute regarding the City’s legal authority, Grantee shall have the burden to demonstrate that such authority exists. 17.20 Treatment of negotiated provisions. In consideration of the City and the Commission relinquishing any claim, title or right to certain obligations set forth in the cable television franchise originally granted by Ordinance No. 353, Grantee agrees that for the term of this Franchise any costs incurred by Grantee pursuant to Sections 7.2(g), 7.5(c), 7.8, 7.9, 7.10, 7.12, 7.14, 7.15, 7.16, 13.1, 13.2, 13.3, and 13.4 shall be treated by Grantee as Grantee’s business expense and not a Franchise Fee under Sections 1.19 and 16.1 of this Franchise or as a PEG Fee under Section 7.13 of this Franchise. Grantee reserves any rights it may have to recover from Subscribers, as a separate line item from the PEG Fee in Section 7.13 of this Franchise, any PEG capital costs set forth in Section 7.2(g), 7.8, 7.9, 7.10, 7.11, 7,15 and 7.16 as may be permitted by Applicable Law as of the Effective Date. Passed and adopted this day of 2020. ATTEST CITY OF MENDOTA HEIGHTS, MINNESOTA By: By: Its: City Clerk Its: Mayor Page 105 ACCEPTED: This Franchise is accepted, and we agree to be bound by its terms and conditions. COMCAST OF ST. PAUL, INC. Date: By: Its: SWORN TO BEFORE ME this day of , 2020. NOTARY PUBLIC Page 106 Exhibit A SD/HD PEG Channel Numbers Channel Name SD Channel # HD Channel # 1. Community 14 2. Public Access 15 3. Multifaith Access 16 4. Government 18 799 5. Government 19 859 6. Education 20 7. Community Bulletin Board 21 Page 107 Exhibit B Delivery of live and recorded programming to and from below listed entities on C-RAN 1. MCN 6 (1 receive ch and 1 send ch) 2. St. Paul (2 receive ch and 1 send ch) 3. Eagan (3 receive ch and 1 send ch) 4. Burnsville (1 receive ch) 5. Bloomington (1 receive ch) 6. CCX (1 receive ch) Page 108 Exhibit C PEG Monitoring NAME ADDRESS 1. Inver Grove Heights City Hall 8150 Barbara Avenue, Inver Grove Heights, MN 55077 2. Mendota Heights City Hall 1101 Victoria Curve, Mendota Heights, MN 55118 3. NDC4 Commission and Town Square TV 5845 Blaine Avenue, Inver Grove Heights, MN 55076 4. South St. Paul City Hall 125 3rd Avenue, South St. Paul, MN 55075 5. West St. Paul City Hall 1616 Humboldt Avenue, West St. Paul, MN 55118 PEG Transport NAME ADDRESS 1. Inver Grove Heights City Hall 8150 Barbara Avenue, Inver Grove Heights, MN 55077 2. Mendota Heights City Hall 1101 Victoria Curve, Mendota Heights, MN 55118 3. NDC4 Commission and Town Square TV 5845 Blaine Avenue, Inver Grove Heights, MN 55076 4. South St. Paul City Hall 125 3rd Avenue, South St. Paul, MN 55075 5. West St. Paul City Hall 1616 Humboldt Avenue, West St. Paul, MN 55118 Page 109 Exhibit D Franchise Fee Payment Worksheet TRADE SECRET – CONFIDENTIAL Nothing in this Franchise Fee Payment Worksheet shall serve to modify the definition of “Gross Revenues” set forth in the Franchise. Page 110 Exhibit E MONTHLY SUBSCRIBER DATA REPORT Page 111 TO: Mayor and City Council FROM: Mark McNeill, City Administrator DATE: September 1, 2020 SUBJECT: Renewal of Comcast Cable Television Franchise Ordinance COMMENT: Introduction: On September 15th, the Council will be asked to consider adopting the Comcast Cable Television Franchise Ordinance (“Ordinance”) as recommended by the Northern Dakota County Cable Communications Commission (“Commission”), and also to authorize the NDC4 Commission to execute the mutually agreed-upon Side Letter with Comcast. The action will provide for a ten year renewal of the franchise. However, because of the amount of other business which is anticipated to be on the September 15th agenda, on September 1st the City Council will only hear the presentation by the Attorney for NDC4 for the proposed renewal. Because the franchise renewal will be by Ordinance, before the City Council can adopt an ordinance, by law the proposed change must be posted for a minimum of ten days. In order to allow for that posting, the ordinance change adopting the franchise renewal cannot be accommodated on the September 1st meeting. Background: The current cable television franchise was adopted in 2000 and initially expired in 2015. In accordance with federal law, the franchise renewal process began in 2012. For a number of reasons including corporate mergers, application for a competing franchise by CenturyLink, and marketplace uncertainty caused by a new FCC Order, the renewal process was delayed several times, and multiple extensions of the current cable television franchise term were granted by the City. The Commission is a Joint Powers Cooperative comprised of seven (7) Member Cities (Inver Grove Heights, Lilydale, Mendota, Mendota Heights, South St. Paul, Sunfish Lake and West St. Paul, Minnesota). Mendota Heights has two NDC4 Commission Representatives, City Councilor Joel Paper and Citizen Representative Mickey Kieffer, Page 112 The Commission is authorized to negotiate, recommend, enforce, and administer the cable television franchise on behalf of the Member Cities, however, each individual Member City adopts a cable television franchise as a City Ordinance according to its own ordinance procedures In July o f 2020 the Commission and Comcast came to mutual agreement on terms and conditions of a renewal franchise. On August 5, 2020, the Commission passed a resolution recommending adoption of the renewal franchise with strong support of all commissioners in attendance. Comcast is in full support of the recommended ten-year renewal franchise and has agreed to execute the franchise as soon as all seven Member Cities have adopted the Ordinance. On August 19th Member Cities management staff, IT staff, and City Attorneys attended a briefing presented by the Commission’s Executive Director, Jodie Miller, the Commission’s outside legal counsel, Brian Grogan of Moss & Barnett, and LMCIT-assigned litigation attorneys, John Baker and Katherine Swenson of Greene Espel. A summary of the presentation is included in the meeting materials. The ten-year renewal franchise provides the continuation of the 5% of gross revenues franchise fee, and improves PEG fee funding from the per subscriber, per month flat fee to a PEG fee in the amount of 2.25% of gross revenues. The renewal franchise maintains strong customer service and rights-of-way protections, and enforcement tools including a bond and a letter of credit security fund. Resources for local PEG programming including channels, technical support, and funding for capital purchases are retained, and High Definition (HD) channels are available within 90 days of enactment. Most importantly, the Commission and Comcast found a mutual solution to continuing many of the non-cash requirements in the current franchise. Important technical support items such as transmission of live signals from city halls, connections with other metro area stations to share programming, and cable TV service at city halls and the Commission’s office, will continue without the threat of a future deduction from franchise fee payments as allowed by the 2019 FCC “621 Order.” The “winding down” of the fiber I-Net that was used by cities, school districts, and other institutional users under the current franchise, is covered within the attached side letter. Reference Materials: 1. Resolution approved by the NDC4 Commission at its August 5, 2020, meeting; 2. PowerPoint presentation provided by Brian Grogan, the Commission’s outside legal counsel; 3. Recommended Ordinance (559) to be considered by the City at the September 15, 2020 City Council meeting; 4. Mutually agreed-upon side letter to be executed by the Commission and Comcast (“Side Letter”); Budget Impact: The Commission will continue to receive the franchise fee and PEG fee revenues from Comcast on behalf of the Member Cities. Under the Joint Powers Agreement, the Commission remits an annual payment of 25% of the franchise fees to each Member City in its proportionate share of the total subscriber base. The Commission and Town Square Television utilize 75% of the franchise fees and the PEG fee revenues to provide PEG programming and franchise administration to the community on behalf of the Member Cities. Page 113 Cable television subscribership has gradually declined over the past few years with the changes in the marketplace and video viewing trends. This ten-year renewal franchise will provide some certainty and a stabilization of the PEG fee capital funding as Town Square Television and the Commission work on strategic planning for sustainability, assuming that the traditional cable video market transitions to an all-internet industry. Recommendation: The only action recommended to take place on September 1st is to hear the presentation by Attorney Grogan, and to ask questions. At the following meeting, the Council will be asked to adopt what will be Ordinance 559, which will authorize approval of the franchise Renewal, and then also adopt the side letter. Action Required: If the City Council should hear the presentation, and ask questions so that the Ordinance adoption can be made at the September 15th meeting. Mark McNeill City Administrator Page 114 [Comcast letterhead] July 30, 2020 Northern Dakota County Cable Communications Commission 5845 Blaine Avenue Inver Grove Heights, MN 55076 Dear Northern Dakota County Cable Communications Commission: The purpose of this letter of agreement is to memorialize commitments between Comcast of St. Paul, Inc. (“Comcast”) and the Northern Dakota County Cable Communications Commission (“Commission”) that are in addition to the obligations contained in the renewal franchise agreement to be adopted by the Commission’s seven member cities (hereinafter collectively, “the Franchise”). These items set forth herein: 1) have been negotiated in good faith and mutually agreed to by the parties as part of the informal franchise renewal process pursuant to 47 U.S.C. 546(h); 2) are provided by Comcast in consideration of the grant of the Franchise by the City; and 3) specifically relate to unique community needs that exist in the Commission and its member cities. This letter of agreement shall become effective upon approval by the Commission. 1. Complimentary Cable Service to Public Buildings/Schools a. Comcast and the Commission agree that under the FCC Section 621 Order (currently pending appeal), complimentary accounts are not a condition of the renewed franchise. Comcast will itemize fair market value price for all former complimentary service locations (approximately 46 sites in Comcast’s current Franchise effective April 2000, attached as Exhibit A), which shall be at rates at or below the attached Comcast municipal pricing sheet at Exhibit C (Comcast’s municipal pricing sheet to be attached as Exhibit C), and shall be subject to Comcast’s regular, nondiscriminatory rate adjustments. b. Commission/City or former Complimentary Service recipients (schools, libraries, et al) have the right to choose to retain Cable Service at the rates listed on the municipal pricing sheet or terminate Cable Service to their Location. c. If the FCC Section 621 Order (Third Report and Order in MB Docket No. 05-311 adopted by the FCC on August 1, 2019) (herein “621 Order”) is stayed or overturned by action of the FCC or through judicial review, and franchise-mandated complimentary services to public buildings are no longer considered to be “franchise fees” under 47 USC §542, then for the remaining Franchise term Commission/City may require Comcast to provide complimentary basic Cable Service to the former Complimentary Service Locations listed in Exhibit B. 2. Institutional Network – I-Net a. The I-Net is not a condition of the renewed cable franchise. Comcast will wind down its I-Net obligation as follows: Page 115 i. Comcast will provide existing dark fiber connections (former I-Net fiber), at no charge, from the Effective Date of the renewed franchise through the end of calendar year 2020 (“Termination Date”), to the following locations: (A) Four (4) Inver Grove Heights sites; and (B) Two (2) West St. Paul sites. ii. Comcast will provide exactly what is in place today under the former franchise(s) (franchises adopted in the year 2000) to the above six (6) sites – no managed services required by the cities/sites. iii. In the event the Cities should experience unavoidable fiber construction delays in 2020 (i.e. the COVID-19 crisis, weather, early winter frost, etc.) the Commission shall have the option to extend the Termination Date for any of the above locations. Any such extension of the Termination Date shall not extend beyond October 31, 2021. If such an extension is required, the Commission shall pay Comcast $330 per location for each additional month beyond the end of calendar year 2020. iv. But for any unavoidable construction dela ys for the six sites noted above, Comcast is relieved of the obligation to serve all other existing I-Net sites as of January 1, 2021 and shall have no further obligation to provide I-Net services. v. The parties agree that Comcast shall not treat any costs incurred in performing under this Paragraph 2 as franchise fees, and agree that this provision is a reasonable way to come into compliance with the 621 Order as contemplated in the FCC’s Order on Reconsideration of the 621 Order (¶5)(Released Feb. 11, 2020). The terms and conditions of this letter agreement are binding upon the Commission and Comcast and their successors and assigns. In the event Comcast seeks to transfer the Franchise to another entity, Comcast agrees to require the new transferee to honor the terms of this side letter agreement as a condition of such transfer. Enforcement of the terms of this letter agreement shall be consistent with the enforcement procedures set forth in the Franchise. Acknowledged and agreed to this day of , 2020. Comcast of St. Paul, Inc. Northern Dakota County Cable Communications Commission By: By: Its: Its: Date: Date: 6312627v1 Page 116 EXHIBIT A NDC4 COMCAST FRANCHISE EXHIBIT B-1 Effective April 2000 to present (FORMER) SERVICE TO PUBLIC AND PRIVATE BUILDINGS Dakota County IN NDC SYSTEM Inver Glen Library 8098 Blaine Avenue Inver Grove Heights, MN 55076 Wentworth Library 199 East Wentworth Avenue West St. Paul, MN 55118 Northern Service Center (under construction) 5 West Mendota Road Page 117 ISD #199 Inver Grove Elementary School Pine Bend Elementary School 4100 East 66th Street 9875 Inver Grove Trail Inver Grove Heights, MN 55076 Inver Grove Heights, MN 55076 Hilltop Elementary School South Grove Elementary School 3201 East 68th Street 7650 Clayton Avenue Inver Grove Heights, MN 55076 Inver Grove Heights, MN 55076 Salem Hills Elementary School 5899 East Babcock Trail Inver Grove Heights, MN 55076 ALL IN ONE COMPLEX Inver Grove Middle School Simley Senior High School 8167 Cahill Avenue East 2920 East 80th Street Inver Grove Heights, MN 55076 Inver Grove Heights, MN 55076 ISD #199 District Office 2990 80th Street East Inver Grove Heights, MN 55076 Page 118 Inver Grove Heights Inver Grove Heights City Hall Inver Grove Heights Police Department 8150 Barbara Avenue 8150 Barbara Avenue Inver Grove Heights, MN 55077 Inver Grove Heights, MN 55077 IGH Fire Department IGH Fire Department 2059 Upper 55th Street E 7015 Clayton Avenue Inver Grove Heights, MN 55077 Inver Grove Heights, MN 55076 ISD #197 Henry Sibley High School Friendly Hills Middle School 1897 Delaware Avenue 701 Mendota Heights Road Mendota Heights, MN 55118 Mendota Heights, MN 55118 Heritage Middle School Somerset Elementary School 121 West Butler Avenue 1355 Dodd Road West St. Paul, MN 55118 Mendota Heights, MN 55118 Mendota Heights Elementary School Moreland Elementary School 1979 Summit Lane 217 West Moreland Avenue Mendota Heights, MN 55118 West St. Paul, MN 55118 Garlough Elementary School 1740 Charlton Street West St. Paul, MN 55118 West St. Paul West St. Paul City Hall 1616 Humboldt Avenue West St. Paul, MN 55118 Page 119 South St. Paul South St. Paul City Hall South St. Paul Public Library 125 3rd Avenue 106 3rd Avenue N. South St. Paul, MN 55075 South St. Paul, MN 55075 Wakota Arena (School) South St. Paul Municipal 141 East 6th Street Airport (Fleming Field) South St. Paul, MN 55075 520 Airport Road South St. Paul, MN 55075 (shall be considered a subsequently designated building pursuant to Section 6(2) of this Franchise) Lilydale Lilydale City Hall 855 Sibley Memorial Hwy Lilydale, MN 555118 Sunfish Lake Sites to be determined Mendota Sites to be determined Mendota Heights Mendota Heights City Hall Mendota Heights Police Department 1101 Victoria Curve 1101 Victoria Curve Mendota Heights, MN 55118 Mendota Heights, MN 55118 Mendota Heights Fire Department 2121 Dodd Road Mendota Heights, MN 55120 Page 120 South St. Paul Schools South St. Paul High School 700 2nd St. N. South St. Paul, MN 55075 District Office 104 5th Ave. So. South St. Paul, MN 55075 ECFE 1549 5th Ave. So. South St. Paul, MN 55075 Lincoln Center 357 9th Ave. N. South St. Paul, MN 55075 Kaposia Education Center 1225 1st Ave. So. South St. Paul, MN 55075 ALC 151 6th St. E. South St. Paul, MN 55075 Page 121 Private Schools Convent of the Visitation School Emanuel Lutheran School 2455 Visitation Drive 115 Crusader Avenue Mendota Heights, MN 55120 West St. Paul, MN 55118 St. Croix Lutheran High School St. John Vianney School 1200 Oakdale Avenue 1815 Bromley Street West St. Paul, MN 55118 South St. Paul, MN 55075 St. Joseph's School St. Michael's School 1138 Seminole Avenue 335 E. Hurley Street West St. Paul, MN 55118 West St. Paul, MN 55118 St. Thomas Academy Holy Trinity School 949 Mendota Heights Road 745 - 6th Avenue S. Mendota Heights, MN 55120 South St. Paul, MN 55075 Colleges Inver Hills Community College 2500 East 80th Street Inver Grove Heights, MN 55076 Page 122 EXHIBIT B LOCATION ADDRESS City of IGH FIRE DEPT, INVER GROVE HTS 7015 CLAYTON AVE APT 1 FIRE DEPT, IGH 3 2059 UPPER 55TH ST E FIRE DEPT, NEW STATION 2 9200 COURTHOUSE BLVD 55077 CITY OF, INVER GROVE 8150 BARBARA AVE ISD #199 ELEM SCHOOL, HILLTOP 3201 68TH ST E MIDDLE SCHOOL, IGH 8167 CAHILL AVE SCHOOL, SIMLEY HIGH 2920 80TH ST E SCHOOL, PINE BEN 9875 INVER GROVE TRL ELEM SCHOOL, SALEM 5899 BABCOCK TRL LIBRARIES LIBRARY, INVER GROVE 8098 BLAINE AVE LIBRARY, S ST PAUL 106 3RD AVE N LIBRARY, WEST ST. PAUL Wentworth Avenue CABLE COMM, NDC 5845 BLAINE AVE APT 1 CABLE COMM, NDC 5845 BLAINE AVE APT 2 CITY HALL, LILYDALE 1011 SIBLEY MEMORIAL HWY City of Mendota Heights CITY HALL, MENDOTA HEIGHTS 1101 VICTORIA CURV POLICE DEPT, MENDOTA HGTS 1101 VICTORIA CURV FIRE DEPT, MENDOTA HGTS 2121 DODD RD ISD #197 HIGH SCHOOL, HENRY SIBLEY 1897 DELAWARE AVE APT A SCHOOL, MENDOTA 1979 SUMMIT LN MIDDLE SCHO, FRIENDLY HILLS 701 MENDOTA HEIGHTS RD MIDDLE SCHOOL, HERITAGE 121 BUTLER AVE W ELEM SCHOOL, PAUL MORELAND 217 MORELAND AVE W ELEM SCHOOL, GARLOUGH 1740 CHARLTON ST SOMERSET ELEMENTARY SCHOOL 1355 DODD ROAD SOUTH ST. PAUL SCHOOLS #6 SENIOR HIGH, S ST PAUL 700 2ND ST N CENTER, KAPOSIA EDUCATION 1225 1ST AVE S ELEMENTARY, LINCOLN CENTER 357 9TH AVE N BUILDING, S ST PAUL ADMIN 104 5TH AVE S City of SSP CITY HALL, SSP 125 3RD AVE N FIRE, S ST PAUL 310 MARIE AVE POLICE DEPT, S ST PAUL 125 3RD AVE N APT B MAINT BUILDING, S ST PAUL 400 RICHMOND ST W Page 123 LOCATION ADDRESS City of WSP CITY HALL, W ST PAUL 1616 HUMBOLDT AVE APT A FIRE FIGHTERS, INTL ASSN OF 1616 HUMBOLDT AVE APT B POLICE, WEST ST PAUL 1616 HUMBOLDT AVE PUBLIC WORKS, W ST PAUL 403 MARIE AVE E Page 124 EXHIBIT C BUSINESS BASIC CABLE PRICING BUSINESS SELECT CABLE PRICING BUSINESS SERVICE EQUIPMENT & FEES Currently $24.60 - includes BTV Fee. Currently $42.65 - includes BTV and RSN Fees. $9.95 per piece of equipment (DTA or HD Box). $5.00 per account for HD Service Page 125 Page 126 Page 127 Page 128 REQUEST FOR COUNCIL ACTION DATE: September 15, 2020 TO: Mayor, City Council, and City Administrator FROM: Ryan Ruzek, P.E., Public Works Director Krista Spreiter, Natural Resources Technician SUBJECT: Accepting Wetland Delineation Report and Findings of ‘No Wetland’ for the parcel located at 2393 Pilot Knob Road COMMENT: INTRODUCTION The Council is asked to approve a Wetland Conservation Act (WCA) Joint Water Resources Application for determination of ‘No Wetland’ for the parcel at 2393 Pilot Knob Road, owned by Lloyd’s Barbeque Company. BACKGROUND The City Council of Mendota Heights is the Local Governmental Unit (LGU) that administers Chapter 8420 of the Minnesota Wetland Conservation Act (WCA). A Wetland Delineation and Determination Report for the site at 2393 Pilot Knob Road was submitted by Sambatek, on behalf of Endeavor Development, applicant, on August 13, 2020. DISCUSSION Sambatek delineated the project site in July of 2020, and determined that no wetland was present within the site. The National Wetland Inventory Map shows no wetlands on the site. The City’s Natural Resources Technician and Dakota SWCD Staff reviewed the delineation on-site on September 9, 2020, and concurred with the delineation as submitted in the report. No additional comments were received from the Technical Evaluation Panel. BUDGET IMPACT None, this process is a judicial requirement of the City. If the Council accepts the report, a Notice of Decision will be sent to Technical Evaluation Panel members and their respective agencies (Dakota County SWCD, BWSR, LMRWMO, MN DNR, and Army Corps of Engineers), as well as the applicant and any members of the public that requested notice (none). RECOMMENDATION Staff recommends that City Council approve and accept the Wetland Delineation Report and Determination as submitted by Sambatek, and direct staff to issue the Notice of Decision. ACTION REQUIRED If Council wishes to enact the staff recommendation, it should pass a motion accepting the Wetland Delineation Report and Determination, and authorize staff to issue a Notice of Decision. This action requires a simple majority vote. 5h.Page 129 Page 130 Page 131 Page 132 REQUEST FOR COUNCIL ACTION DATE: September 15, 2020 TO: Mayor, City Council, and City Administrator FROM: Ryan Ruzek, P.E., Public Works Director SUBJECT: Resolution 220-57 Accept Bids and Award Contract for the 2020 Sanitary Sewer Rehabilitation Project COMMENT: INTRODUCTION The Council is asked to approve Resolution 2020-57 accepting bids and awarding a contract for the 2020 Sanitary Sewer Rehabilitation Project. BACKGROUND Our sanitary sewer system is aging. Many of our pipes are 60 years old and will soon be in need of repair. Cleaning our sewer system on a regular cycle will help extend the life of the pipes. Televising of the system will show where immediate repairs are needed. Lining pipes in need of repair with cured-in-place-pipe will extend the life of our system. DISCUSSION The 2020 Sanitary Sewer Rehabilitation Project consists of lining approximately 1,000 feet of sanitary sewer pipe and reinstating 3 lateral connections. This project is located in the industrial park on Mendota Heights Road between Highway 13 and Pilot Knob Road. Five bids (see attached resolution) were received and opened on Thursday, September 10, 2020 for the 2020 Sanitary Sewer Rehabilitation Project. Insituform Technologies USA submitted the low bid of $57,447.90. Their bid was lower than the Engineer’s Estimate of $116,480.00. The completion date for the project is December 31, 2020. Staff expects that Insituform Technologies USA is capable of meeting the completion dates and implementing the project in accordance with the plans and specifications given. BUDGET IMPACT The project costs will be funded through the Sanitary Sewer Utility Fund. The 2020 city budget includes $250,000.00 for sanitary sewer maintenance. RECOMMENDATION Staff recommends that the Council accept the bids and award the contract to Insituform Technologies USA for their bid in the amount of $57,447,90. 5iPage 133 ACTION REQUIRED If City Council wishes to implement the staff recommendation, pass a motion adopting A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE 2020 SANITARY SEWER REHABILITATION (PROJECT #202003). This action requires a simple majority vote. Page 134 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2020-57 A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE 2020 SANITARY SEWER REHABILITATION PROJECT (PROJECT #202003) WHEREAS, pursuant to a request for bids for the proposed lining of sanitary sewers to serve the area referred to as 2020 Sanitary Sewer Rehabilitation Project (City Project No. 202003), bids were received, opened and tabulated according to law and the following bids were received complying with said advertisement: NAME OF BIDDER AMOUNT OF BID Insituform Technologies $57,447.90 Hydro-Klean $60,213.20 Michels Corporation $74,729.50 Veit & Company, Inc. $92,560.00 Visu-Sewer, Inc. $114,136.40 and WHEREAS, the Public Works Director recommended that the low bid submitted by Insituform Technologies of St. Paul, MN, be accepted. NOW THEREFORE BE IT RESOLVED, by the Mendota Heights City Council as follows: 1.That the bids for the above project are hereby received and accepted. 2. That the bid of Insituform Technologies of St. Paul,, MN, submitted for the 2020 Sanitary Sewer Rehabilitation of the above described project be and the same is hereby accepted. 3. That the contract be awarded to Insituform Technologies of St. Paul,, MN, and that the Mayor and Clerk are hereby authorized and directed to execute and deliver any and all contracts and documents necessary to consummate the awarding of said bids. Adopted by the City Council of the City of Mendota Heights this fifteenth day of September 2020. CITY COUNCIL CITY OF MENDOTA HEIGHTS ATTEST _________________________ Neil Garlock, Mayor Lorri Smith, City Clerk Page 135 CITY OF MENDOTA HEIGHTSInsituform Technologies USAHydro-KleanMichels CorporationVeit & Company, IncVisu-SewerPROJECT:2020 Sanitary Sewer RehabilitationPROJECT #:202003 DATE: 9/10/2020I certify that I have personally opened and read all bids, verified this abstract and find it correct.By:__________________________________________________________________ITEM NO.ITEM DESCRIPTIONUNITENGINEER'S ESTIMATED QUANTITYENGINEER'S ESTIMATED UNIT PRICEENGINEER'S ESTIMATED AMOUNTBID UNIT PRICE BID AMOUNTBID UNIT PRICE BID AMOUNTBID UNIT PRICE BID AMOUNT BID UNIT PRICE BID AMOUNT BID UNIT PRICE BID AMOUNTSCHEDULE 'A' - CIPP SANITARY SEWER LINING112" CIPPL.F. 1,004 $95.00 $95,380.00 $48.60 $48,794.40 $50.30 $50,501.20 $44.00 $44,176.00 $82.50 $82,830.00 $91.60 $91,966.402Lateral Reinstatements (any size)Each 3$250.00$750.00 $200.20 $600.60 $200.00 $600.00 $84.50 $253.50 $110.00 $330.00 $150.00 $450.003Remove Joint Sealing RingEach 1$350.00$350.00 $518.00 $518.00 $250.00 $250.00 $500.00 $500.00 $400.00 $400.00 $1,500.00 $1,500.004Traffic ControlL.S. 1$5,000.00 $5,000.00 $5,470.80 $5,470.80 $4,200.00 $4,200.00 $11,800.00 $11,800.00 $4,500.00 $4,500.00 $7,500.00 $7,500.005MobilizationL.S. 1$15,000.00 $15,000.00 $2,064.10 $2,064.10 $4,662.00 $4,662.00 $18,000.00 $18,000.00 $4,500.00 $4,500.00 $12,720.00 $12,720.00TOTAL$116,480.00 $57,447.90 $60,213.20 $74,729.50 $92,560.00 $114,136.40BID ABSTRACTPage 1 of 1Page 136 REQUEST FOR COUNCIL ACTION DATE: September 15, 2020 TO: Mayor, City Council, and City Administrator FROM: Ryan Ruzek, P.E., Public Works Director SUBJECT: Resolution 2020-58 Accept Bids and Award Contract for the Lemay Lake Erosion Control Project COMMENT: INTRODUCTION The Council is asked to approve Resolution 2020-58 accepting bids and awarding a contract for the Lemay Lake Erosion Control Project. BACKGROUND Council authorized staff to bid the Lemay Lake Erosion Control Project at their August 18, 2020 meeting. The proposed plan will add catch basins in areas where the boulevard are lower than the street resulting in land locked areas as well as excessive water from sump pump discharges that have been creating problems and nuisances for both the public and city maintenance crews. A summary of the improvements are: DISCUSSION Nine bids (see below) were received and opened on Thursday, September 10, 2020, at 10:30 a.m. for the Lemay Lake Erosion Control Project. NAME OF BIDDER AMOUNT OF BID Sunram Construction, Inc. $36,725.00 Dahn Construction $44,664.50 Standard Contracting $48,777.50 Urban Companies $49,300.00 Fitzgerald Excavating $58,790.00 Meyer Contracting, Inc. $66,001.25 G. F. Jedlicki, Inc. $89,865.00 Blackstone Contractors, LLC $92,270.00 All Phase Contracting, Inc. $96,028.85 Sunram Construction, Inc. submitted the lowest responsible bid of $36,725. Their bid was less than the Engineer's Estimate of $61,110.00. Sunram Construction, Inc. is a contractor with many years of experience with an office in Corcoran, Minnesota. 5j. Page 137 BUDGET IMPACT The Lemay Lake Erosion Control project is proposed to be financed by the storm water utility fund. The total cost for the Lemay Lake Erosion Control project is $36,725. The Storm Sewer Utility Fund has an adequate balance for these improvements. RECOMMENDATION Staff recommends that the Council accept the bids and award the construction contract to Sunram Construction, Inc. for their bid in the amount of $36,725. ACTION REQUIRED If City Council wishes to implement the staff recommendation, pass a motion adopting A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE LEMAY LAKE EROSION CONTROL PROJECT. This action requires a simple majority vote. Page 138 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2020-58 A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR LEMAY LAKE EROSION CONTROL PROJECT (201807) WHEREAS, pursuant to an advertisement for bids for the proposed construction of erosion control, rip rap, and related appurtenant work for the Lemay Lake Erosion Control Project, bids were received, opened, and tabulated according to law and the following bids were received complying with said advertisement: NAME OF BIDDER AMOUNT OF BID Sunram Construction, Inc. $36,725.00 Dahn Construction $44,664.50 Standard Contracting $48,777.50 Urban Companies $49,300.00 Fitzgerald Excavating $58,790.00 Meyer Contracting, Inc. $66,001.25 G. F. Jedlicki, Inc. $89,865.00 Blackstone Contractors, LLC $92,270.00 All Phase Contracting, Inc. $96,028.85 and WHEREAS, the Public Works Director recommended that the lowest responsible bid submitted by Sunram Construction, Inc. of Corcoran, Minnesota, be accepted. NOW THEREFORE BE IT RESOLVED, by the Mendota Heights City Council as follows: 1. That the bids for the Lemay Lake Erosion Control Project are hereby received and accepted. 2. That the bid of Sunram Construction, Inc. of Corcoran, Minnesota, submitted for the construction of the above described improvements be and the same is hereby accepted. 3. That the contract be awarded to Sunram Construction, Inc. of Corcoran, Minnesota, and that the Mayor and Clerk are hereby authorized and directed to execute and deliver any and all contracts and documents necessary to consummate the awarding of said bids. Adopted by the City Council of the City of Mendota Heights this fifteenth day of September, 2020. CITY COUNCIL CITY OF MENDOTA HEIGHTS ATTEST ___________________________ _____________________________ Lorri Smith, City Clerk Neil Garlock, Mayor Page 139 CITY OF MENDOTA HEIGHTSPROJECT:Lemay Lake Erosion ControlPROJECT #:201807CONTRACTOR:TBDCONTRACT FOR:Rip Rap Channels from Augusta Shores and Mendota ApartmentsI certify that I have personally opened and read all bids, verified this abstract and find it correct.By:__________________________________________________________________ITEM NO. SPEC. NO. ITEM DESCRIPTIONUNITENGINEER'S ESTIMATED QUANTITYENGINEER'S ESTIMATED UNIT PRICEENGINEER'S ESTIMATED AMOUNT BID UNIT PRICE BID AMOUNT BID UNIT PRICE BID AMOUNT BID UNIT PRICE BID AMOUNT BID UNIT PRICE BID AMOUNTSCHEDULE 'A' ‐ LEMAY LAKE EROSION CONTROL1Silt Fence/Bio‐RollL.F. 1,050.00 $3.00 $3,150.00 $5.00$5,250.00 $2.85 $2,992.50 $3.25 $3,412.50 $5.00 $5,250.002Remove TreeEach13 $500.00 $6,500.00 $600.00 $7,800.00 $100.00 $1,300.00 $810.00 $10,530.00 $250.00 $3,250.003Erosion Control BlanketS.F.17,500 $1.50 $26,250.00 $0.33 $5,775.00 $0.20 $3,500.00 $0.33 $5,775.00 $0.33 $5,775.004CL II Rip Rap (D50=6")C.Y.120 $120.00 $14,400.00 $106.00$12,720.00 $176.00 $21,120.00 $152.50 $18,300.00 $150.00 $18,000.005Granular Filter BeddingC.Y.15 $30.00 $450.00 $82.00 $1,230.00 $90.00 $1,350.00 $145.00 $2,175.00 $75.00 $1,125.006Geotextile Filter FabricS.Y.180 $2.00 $360.00 $2.50 $450.00$1.00 $180.00 $3.25 $585.00 $5.00 $900.007MobilizationL.S.1 $10,000.00 $10,000.00 $3,500.00 $3,500.00 $14,222.00 $14,222.00 $8,000.00 $8,000.00 $15,000.00 $15,000.00$61,110.00$36,725.00$44,664.50$48,777.50$49,300.00SCHEDULE 'A' ‐ LEMAY LAKE EROSION CONTROL1Silt Fence/Bio‐RollL.F. 1,050.00 $2.00$2,100.00$3.25 $3,412.50 $4.50 $4,725.00 $5.00 $5,250.00 $5.59 $5,869.502Remove TreeEach13 $275.00$3,575.00$750.00 $9,750.00 $950.00 $12,350.00 $1,000.00 $13,000.00 $1,889.00 $24,557.003Erosion Control BlanketS.F.17,500 $1.50$26,250.00$0.35 $6,125.00 $3.20 $56,000.00 $0.37 $6,545.00 $0.84 $14,700.004CL II Rip Rap (D50=6")C.Y.120 $65.00$7,800.00$152.10 $18,252.00 $89.00 $10,680.00 $175.00 $21,000.00 $206.76 $24,811.205Granular Filter BeddingC.Y.15 $35.00$525.00$202.25 $3,033.75 $48.00 $720.00 $175.00 $2,625.00 $619.53 $9,292.956Geotextile Filter FabricS.Y.180 $3.00$540.00$3.35 $603.00 $3.00 $540.00 $7.50 $1,350.00 $39.49 $7,108.207MobilizationL.S.1 $18,000.00$18,000.00$24,825.00 $24,825.00 $4,850.00 $4,850.00 $42,500.00 $42,500.00 $9,690.00 $9,690.00$58,790.00$66,001.25$89,865.00$92,270.00$96,028.85All Phase Contracting, Inc.Urban CompaniesFitzgerald Excavating Meyer Contracting, Inc.G.F. Jedlicki, Inc.Blackstone Contractors, LLCBID ABSTRACTENGINEER'S ESTIMATED QUANTITYSunram Const, Inc.Dahn ConstructionStandard ContractingPage 140 5k.Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 DATE: September 15, 2020 TO: Mayor and City Council FROM: Kristen Schabacker, Finance Director Mark McNeill, City Administrator SUBJECT: Adopt Budget and Levy for FY 2021 COMMENT: INTRODUCTION The City Council is asked to adopt a preliminary budget and proposed levy for FY 2021. BACKGROUND In August, the City Council held two budget work sessions to discuss the proposed 2021 budget. It considered priorities for expenditures, and then balanced those needs with revenues which would be available to fund that for the upcoming fiscal year (FY), which begins January 1st. The majority of the discretionary expenditures are supported by taxes levied on residential and commercial properties in the City. Given the uncertainties of what the COVID-19 pandemic will have on future city resources and expenditures, staff was directed to prepare a very tight budget. The highlights of expenditures which are proposed for FY 2021 are as follows: Personnel/Staffing: •There are no new positions proposed to be added. •The Mendota Heights Fire Relief Association asked for no additional contributions to the firefighter pensions. •The City’s four bargaining units will be entering the second year of two year contracts. A 3% cost of living increase has been budgeted as a result. •The City will continue to see the benefit of changing to the State Public Employee Health Insurance Program last year, as no additional funding is necessary to continue to provide employee health coverage. •The City’s Worker’s Comp premium budgeted for FY 2021 will increase by $29,840. Activities/Quality of Life •Continues $14,000 funding for July 4th Fireworks Display. •Provides $3,500 in funding for a limited outdoor summer concert series. 8a. Page 153 Capital/Major One Time Expenditures In most other years, the City has levied for the more expensive capital items. However, last year due to the large size of the balance which existed in the City’s General Fund, bigger one-time expenditures were financed from the Fund balance. For FY21, the City has the advantage of using proceeds from the sale of the Village lots to fund these one-time expenditures. The closing on that property took place in June, and yielded $1,105,000. After discussions of the Departmental requests which took place during the August budget work sessions, the recommended capital items/major one-time expenditures proposed for acquisition in the next fiscal year are: • Self-Contained Breathing Apparatus (Fire) $ 225,000 • Pole Camera (Police) 5,000 • Squad Car (Police) 27,000 • Tracked Loader (Public Works) 55,000 • Disc Mower (Public Works) 5,000 • Tire Changer (Public Works) 13,200 • Column Jacks (Public Works) 55,000 • Natural Resources Plan (Phase 2) 55,000 • Native Plantings 10,000 • Par 3 Well Repairs (Par 3) 19,000 Total $ 469,200 In addition to the above one-time expenditures, the Village lots proceeds will also fund these other one time expenditures: • City share of the Pilot Knob expansion (Valencour property) $ 150,000 • Fire Station Project Overage 303,300 • Replenish Reserve Funds (used in FY 20) 53,000* Total $506,300 *$53,000 for the equipment and facility reserves were not levied for in 2020. This would replenish those reserve accounts. However, the reserve accounts will not grow, as there is no equipment or facilities reserve levy recommended in FY21 for that purpose. Therefore, the total which remains from the sale proceeds of the Village lots is $129,000. This can either be placed into the fund balance, or be expended as noted later in this memo. This recommended budget does not contain expenditures which are to be funded from the City’s Special Parks Fund for 2021. The City Council and Parks and Recreation Commission will need to continue to discuss, and decide where those should be spent—options previously discussed include Wentworth Park improvements, dugouts at Mendakota Park, Marie Park Playground, and improvements to the skate park. Budget Increase: The total General Fund budget for 2021 is $9,756,686, which is 2.50% greater than the 2020 budget. This is the portion which is funded through property taxes and other revenues. The total city budget for all funds in 2021 is $15,822,544, which also includes such things as special revenue funds, enterprise funds, and debt service funds. Page 154 Levy Impact: The levy for 2021 will increase by $433,893 from the 2020 levy. This represents a 4.32% increase over the 2020 final levy. Tax Impact on Residential Properties: Overall, the value of residential properties in Mendota Heights increased by an average of 4.1% between 2020 and 2021. The proposed 4.32% levy increase will increase the city portion of property taxes on an average value house ($426,600) from $1,613.62 in 2020, to $1,658.66 in 2021. This represents a 2.79% increase in the city portion of property taxes. Information on the impacts on other sample properties is attached. Following is a comparison of the proposed levy for 2021, versus the final levy for 2020: 2020 Final 2021 Prelim General Fund $7,761,373 $8,014,118 Emergency Prep. 25,000 25,000 Fire Relief 180,000 180,000 Infrastructure/Facility Reserve 0 0 Equipment Reserve 0 0 Legal & Contingency 40,000 40,000 Net General Levy $8,006,373 $8,259,118 Improvement Bonds $1,092,926 $1,273,037 Fire Station Bonds $ 623,543 624,173 Equipment Certificates $ 28,442 28,114 Referendum (Par 3 Bonds) $ 244,440 245,175 Special Street Light District $ 53,000 53,000 Net Certified Levy $10,048,724 $10,482,617 Dakota County will send out parcel specific tax statements to the property owners in November. These will show the change in property taxes for next year, based on the preliminary levy adopted. COVID_19 Pandemic Impact: It is unclear at this time as to what the impact of the COVID-19 pandemic economy will have on City finances. If property owners—both residential, and commercial/industrial—are unable to make property tax payments in a timely manner, it will have a negative impact on City revenues. Mendota Heights is very reliant on property taxes to fund its operations, as those account for more than 70% of overall revenues. Other cities may have a more diversified mix of sources of revenues. However, many of those—sales taxes, hotel/motel taxes, beverage taxes, etc-- have already seen a downward turn as a result of the stressed economy. The first half 2020 property taxes were remitted to Mendota Heights this summer in amounts which were fully in line with budget expectations. However, if there are negative impacts in the second half collections, those won’t be known until December. For that reason, none of the optional one time capital expenditures which are provided in this preliminary budget will be allowed to be ordered until the rate of second half payments is seen. That will give the Council an opportunity to re-visit those, should a “belt- tightening” be necessary. Page 155 For this reason, the Council should wait until December to determine what to do with the $129,000 remaining from the Village lots sale. That amount is a logical first source to plug any holes from property tax underpayment, without going into operating expenditures. But if property tax payments are being collected at the usual rate, the Council could choose to apply the remaining $129,000 to • Property tax relief; • Place it in the general fund reserve; • Use it for other one-time expenditures which have previously been discussed; or, • Apply towards any recommended improvements to the City’s skate park—there are no capital funds for that purpose in the proposed FY 21 budget. The impact of the national economy on state and local budgets will likely be a multiple year scenario; the City will need to be diligent in monitoring its effects. RECOMMENDATION All cities in Minnesota must adopt a preliminary budget and proposed levy by September 30th This proposed final budget and levy should be discussed and considered for approval at the Council meeting on Tuesday, December 1, 2020. The amount of the levy can be reduced at that meeting, but may not be increased. The final levy must be certified to the County no later than December 28, 2020. Therefore, we recommend adoption of the attached resolution for the preliminary budget and proposed levy for FY 2021, as well as the resolution for the special taxing district (street lights). ACTION REQUIRED: If the Council concurs with the recommendation, it should approve the following resolutions: Resolution 2020-60 “Resolution Approving Proposed 2020 Tax Levy Collectible in 2021” Resolution 2020-61 “Resolution Adopting 2021 Preliminary Budget” and Resolution 2020-62 “Resolution Approving Final 2020 Tax Levy for Special Taxing District No. 1 Collectible in 2021” Each approval requires a simple majority. Page 156 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2020-60 RESOLUTION APPROVING PROPOSED 2020 LEVY COLLECTIBLE IN 2021 WHEREAS, the state law requires the City of Mendota Heights to certify a tentative tax levy for 2021 prior to September 30, 2020; and WHEREAS, the levy may be adjusted prior to December 28, 2020, to an amount not to exceed the adopted tentative levy. NOW THEREFORE BE IT RESOLVED, that the City Council adopt the following tentative levy for tax against all taxable property in the City of Mendota Heights for collection in the year 2021: 2021 Preliminary General Fund 8,014,118 Emergency Preparedness 25,000 Fire Relief 180,000 Legal & Contingency Levy 40,000 Net General Tax Levy $8,259,118 Special Debt Levies Improvement Bonds 1,273,037 Fire Station Levy 624,173 Equipment Certificates 28,114 Net Levy Debt Service $1,925,324 Market Value Referendum Levy $245,175 Street Light District $53,000 Preliminary Levy Certified $10,482,617 Page 157 BE IT FURTHER RESOLVED that the levy shall be amended following budget hearings to reflect the adopted city budget. BE IT FURTHER RESOLVED that the City Council will hold a hearing Tuesday, December 1, 2020 at 6:00 P.M. at their regularly scheduled council meeting for the purpose of considering the proposed budget and levy. The public is invited to attend the meeting and speak to the final budget and levy. Adopted by the City Council of the City of Mendota Heights this 15th day of September, 2020. CITY COUNCIL CITY OF MENDOTA HEIGHTS ____________________________ Neil Garlock, Mayor ATTEST ____________________________ Lorri Smith, City Clerk Page 158 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2020-61 RESOLUTION ADOPTING 2021 PRELIMINARY BUDGET WHEREAS, State Statute requires City Council adoption of a proposed budget for 2021 on or before September 30, 2020; and WHEREAS, the City Council has received and reviewed the City Administrator’s proposed 2021 budget; and WHEREAS, the Council recognized that the budget document was prepared on the basis of a preliminary levy; and WHEREAS, the final budget and levy will be considered at a Council meeting set for December 1, 2020. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Mendota Heights that the City Administrator’s proposed 2021 budget appropriates expenditures in a manner consistent with service level needs and preliminary levy funding; and BE IT FURTHER RESOLVED, that Council hereby adopts the Administrator’s proposed 2021 budget subject to amendment following budget and levy hearings and adoption of a final levy. The 2021 proposed budget reflects $15,822,544 of expenditures for all budgeted funds. Adopted by the City Council of the City of Mendota Heights this 15th day of September, 2020. CITY COUNCIL CITY OF MENDOTA HEIGHTS __________________________ Neil Garlock, Mayor ATTEST ____________________ Lorri Smith, City Clerk Page 159 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2020-62 RESOLUTION APPROVING FINAL 2020 TAX LEVY FOR SPECIAL TAXING DISTRICT NO. 1 COLLECTIBLE IN 2021 WHEREAS, the City of Mendota Heights has, by Resolution No. 87-91, authorized the levy of taxes within Special Tax District No. 1 for the purpose of paying operating costs of the street lighting system established with said district; and WHEREAS, the City of Mendota Heights has determined that the sum of $53,000 will be required in 2021 for the purpose of paying such operating costs. NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Mendota Heights adopt the following levy against all taxable property within said Special Taxing District No. 1. Operation and Maintenance costs $53,000 BE IT FURTHER RESOLVED, that any tax exempt property within said district be billed for services at a comparable rate computed on the assessor’s market value of such property. Adopted by the City Council of the City of Mendota Heights this 15th day of September, 2020. CITY COUNCIL CITY OF MENDOTA HEIGHTS __________________________ Neil Garlock, Mayor ATTEST ________________________ Lorri Smith, City Clerk Page 160 Net Tax CapacityPay 2020Pay 2021ActualPreliminaryTax Capacity Value27,187,958 28,839,230 6.07%Tax Increment(17,813) (176,904) Fiscal disparaties Contribution(2,759,064) (2,882,018) 4.46%Net Tax Capacity24,411,081 25,780,308 5.61%Tax Capacity RateEstimateTax levy9,751,284 10,184,442 4.44%Fiscal disparities(400,502) (421,436) 5.23%Net tax levy9,350,782 9,763,006 4.41%Net Tax Capacity24,411,081 25,780,308 5.61%Tax Capacity Rate0.38315 0.37870 -1.16%City of Mendota HeightsPage 161 Market Value for Residential Properties Increased an Average of 4.1% from 2020 to 20212021 2021Home Value Total 2020 TaxCity TaxReferendum Total 2021 TaxDifference % Change288,184$ 1,134.76$ 300,000$ 1,136.10$ 30.33$ 1,166.43$ 31.67$ 2.79%$409,798$1,613.62$426,600$1,615.53 43.13$ $1,658.66 45.04$ 2.79%$528,338$2,080.39$550,000$2,082.85 55.61$ $2,138.46 58.07$ 2.79%$672,430$2,647.76$700,000$2,650.90 70.77$ $2,721.67 73.91$ 2.79%Tax Rates for Mendota Heights200628.027200726.398200824.142200926.165201028.061201129.733201232.057201334.479201434.737201534.9640.0001511 2015 referendum rate201635.2470.0001284 2016 referendum rate201737.4870.0001297 2017 referendum rate201837.8260.0001207 2018 referendum rate201939.2940.0001146 2019 referendum rate0.0001011202038.3150.0001061 2020 referendum rate202137.8700.0001011 2021 preliminary ratePage 162 CITY OF MENDOTA HEIGHTS 2020 BUDGET BUDGET AND REVENUE SUMMARY 2019 2020 2021 BUDGET ACTUAL BUDGET BUDGET % CHANGE GENERAL FUND $8,577,865 $9,518,571 $9,756,686 2.50% GENERAL FUND CONTINGENCY $30,358 $40,000 $40,000 0.00% UTILITY FUND $2,001,964 $2,876,109 $2,242,662 -22.02% STORM WATER UTILITY FUND $275,607 $278,470 $260,750 -6.36% PAR THREE FUND $217,932 $193,592 $191,945 -0.85% CITY HALL FUND $225,421 $297,219 $301,452 1.42% EMERGENCY PREPAREDNESS FUND $9,277 $43,600 $43,600 0.00% FACILITY/INFRASTUCTURERESERVE FUND $5,162 $0 $0 FIRE RELIEF FUND $256,876 $281,000 $286,000 1.78% SPECIAL PARK FUND $388,515 $616,750 $6,750 -98.91% DEBT FUND $1,277,214 $1,989,351 $2,170,499 9.11% EQUIPMENT RESERVE FUND $293,169 $399,086 $469,200 17.57% STREETLIGHT MAINTENANCE FUND $42,686 $53,000 $53,000 0.00% TOTAL BUDGET $13,602,045 $16,586,748 $15,822,544 -4.61% REVENUE GENERAL FUND $9,084,896 $9,518,571 $9,756,686 2.50% GENERAL FUND CONTINGENCY $40,000 $40,000 $40,000 0.00% UTILITY FUND $2,066,271 $2,305,350 $2,192,152 -4.91% STORM WATER UTILITY FUND $533,814 $467,850 $541,850 15.82% PAR THREE FUND $217,004 $159,450 $154,450 -3.14% CITY HALL FUND $219,826 $216,075 $216,075 0.00% EMERGENCY PREPAREDNESS FUND $28,129 $25,000 $25,000 0.00% FACILITY/INFRASTUCTURERESERVE FUND $30,942 $0 $0 #DIV/0! FIRE RELIEF FUND $268,186 $281,000 $281,000 0.00% SPECIAL PARK FUND $276,848 $5,000 $5,000 0.00% DEBT FUND $1,277,214 $1,989,351 $2,170,499 9.11% EQUIPMENT RESERVE FUND/RESERVES $333,570 $399,086 $469,200 17.57% STREETLIGHT MAINTENANCE FUND $51,293 $53,000 $53,000 0.00% TOTAL REVENUE $14,427,991 $15,459,733 $15,904,912 2.88% Page 163 CITY OF MENDOTA HEIGHTS 2020 BUDGET TAX LEVY SUMMARY 2019 2020 2021 % CHANGE GENERAL FUND $7,305,004 $7,761,373 $8,014,118 3.26% EMERGENCY PREPAREDNESS $25,000 $25,000 $25,000 0.00% FIRE RELIEF $162,000 $180,000 $180,000 0.00% INFRASTRUCTURE/FACILITY RESERVE $20,000 $0 $0 0.00% EQUIPMENT RESERVE $33,000 $0 $0 0.00% LEGAL AND CONTINGENCY $40,000 $40,000 $40,000 0.00% GENERAL FUND LEVY $7,585,004 $8,006,373 $8,259,118 3.16% IMPROVEMENT BONDS $1,004,844 $1,092,926 $1,273,037 16.48% FIRE STATION LEVY $519,932 $623,543 $624,173 0.10% EQUIPMENT CERTIFICATES - DUMP TRUCK $28,770 $28,442 $28,114 -1.15% TOTAL SPECIAL LEVY $1,553,545 $1,744,911 $1,925,324 10.34% MARKET VALUE REFERENDUM LEVY $243,600 $244,440 $245,175 0.30% STREETLIGHT TAXING DISTRICT $53,000 $53,000 $53,000 0.00% TOTAL TAX LEVY $9,435,149 $10,048,724 $10,482,617 4.32% Page 164 GENERAL FUND FUND 01 DEPARTMENT 2017 ACTUAL 2018 ACTUAL 2020 Budget 2021 budget % CHANGE CITY COUNCIL $42,946 $44,965 $48,371 $47,586 -1.62% ADMINISTRATION $1,115,527 $1,203,238 $1,215,671 $1,256,790 3.38% ELECTIONS $45,719 $42,465 $106,662 $44,452 -58.32% IT $69,582 $110,285 $217,930 $206,630 -5.19% POLICE $3,240,751 $3,851,567 $4,357,107 $4,501,180 3.31% FIRE $441,180 $498,662 $558,454 $553,906 -0.81% CODE ENFORCEMENT $109,066 $112,290 $118,625 $118,625 0.00% PUBLIC WORKS-STREETS $968,025 $1,120,780 $1,155,776 $1,202,882 4.08% PUBLIC WORKS-PARKS $710,761 $854,346 $900,377 $959,017 6.51% RECREATION $33,721 $47,317 $55,650 $57,650 3.59% COMMUNITY DEVELOPMENT $203,513 $169,927 $203,521 $208,965 2.67% RECYCLING $11,995 $41,201 $31,600 $31,600 0.00% ENGINEERING $375,410 $507,778 $548,827 $567,403 3.38% TOTAL GENERAL FUND $7,368,196 $8,604,822 $9,518,571 $9,756,686 2.50% GENERAL FUND CONTINGENCY $102,652 $102,652 $40,000 $40,000 0.00% Page 165 GENERAL FUND FUND 01 REVENUE SOURCE 2019 ACTUAL 2019 BUDGET 2020 BUDGET 2021 BUDGET % CHANGE TAXES CURRENT TAX LEVY $7,347,521 $7,305,004 $7,761,373 $8,014,118 3.26% LICENSES AND PERMITS CIGARETTE LICENSES $2,700 $1,800 $1,800 $1,800 0.00% RUBBISH LICENSES $1,275 $1,400 $1,400 $1,400 0.00% DOG LICENSES $1,520 $2,000 $0 $0 0.00% CONTRACTOR LICENSES $15,350 $15,000 $0 $0 0.00% LIQUOR LICENSES $31,600 $30,000 $30,000 $25,000 -16.67% BUILDING PERMITS $324,783 $260,000 $270,000 $235,000 -12.96% HEATING PERMITS $48,621 $35,000 $40,000 $30,000 -25.00% PLUMBING PERMITS $32,760 $18,000 $25,000 $20,000 -20.00% RIGHT OF WAY PERMITS $20,839 $10,000 $15,000 $15,000 0.00% MASSAGE PERMITS $800 $1,500 $1,500 $1,000 -33.33% TOTAL LICENSES AND PERMITS $480,249 $374,700 $384,700 $329,200 -14.43% FINES AND FORFEITS COURT FINES $113,643 $67,000 $80,000 $100,000 25.00% FALSE ALARMS FINES $7,550 $4,500 $3,000 $3,000 0.00% DOG IMPOUNDING $0 $1,000 $1,000 $300 -70.00% TOTAL FINES AND FORFEITS $121,193 $72,500 $84,000 $103,300 22.98% CHARGES FOR SERVICES ACCIDENT REPORTS $0 $0 $0 $0 0.00% RECREATION PROGRAMS $41,523 $38,000 $40,000 $35,000 -12.50% PARK USE FEES $14,925 $5,500 $5,500 $5,500 0.00% FIELD USE FEES $0 $30,000 $10,000 $10,000 0.00% SOFTBALL LEAGUES $10,782 $10,000 $10,000 $10,000 0.00% MAPS AND ORDINANCES $9 $0 $0 $0 SURCHARGES ($36)$0 $0 $0 PLANNING FEES $26,253 $20,000 $18,000 $15,000 -16.67% FIRE CONTRACTS $173,314 $172,015 $193,551 $170,606 -11.85% LILYDALE POLICING $261,324 $261,321 $273,249 $296,850 8.64% MENDOTA POLICING $60,384 $60,386 $60,558 $66,992 10.62% POLICE SECURITY (OFF DUTY OT)$18,404 $10,000 $10,000 $10,000 0.00% STREET MAINT. CHARGES $1,600 $1,000 $1,000 $1,000 0.00% ASSESSMENT SEARCHES/SPLITS $15 $0 $0 $0 0.00% ENGINEERING CHARGES $51,214 $57,000 $30,000 $40,000 33.33% STREET CHARGES $0 $0 $0 $0 0.00% FILING FEES $0 $20 $20 $0 -100.00% LEASE MAINTENANCE CHARGES $4,374 $3,000 $4,000 $4,000 0.00% TOTAL CHARGES FOR SERVICES $664,085 $668,242 $655,878 $664,948 1.38% Page 166 INTERGOVERNMENTAL MSA MAINTENANCE $150,714 $135,000 $150,000 $150,000 0.00% POLICE STATE AID $163,345 $130,000 $135,000 $145,000 7.41% SCHOOL RESOURCES OFFICER $103,984 $105,000 $105,000 $105,000 0.00% FEDERAL AND STATE GRANTS $91,035 $20,000 $20,000 $40,000 100.00% DAKOTA COUNTY GRANT $0 $10,000 $10,000 $10,000 0.00% PERA AID $9,073 $9,070 $9,070 $9,070 0.00% PEACE OFFICER INSUR REIMBURSE $0 $0 $10,000 $10,000 0.00% ELECTION REIMBURSEMENT $0 $0 $10,000 $0 -100.00% TOTAL INTERGOVERNMENTAL $518,151 $409,070 $449,070 $469,070 4.45% MISCELLANEOUS REVENUE SUNDRY REVENUE $5,852 $5,000 $5,000 $5,000 0.00% DONATIONS $4,864 $0 $0 $0 0.00% CELL TOWER REVENUE $75,000 $75,000 $75,000 $70,000 -6.67% INTEREST $176,757 $35,000 $35,000 $30,000 -14.29% TOTAL MISCELLANEOUS $262,473 $115,000 $115,000 $105,000 -8.70% DAKOTA COUNTY WASTE MANAGEMENT $30,868 $30,000 $21,000 $23,500 11.90% TOTAL DAKOTA COUNTY $30,868 $30,000 $21,000 $23,500 11.90% OTHER REVENUE UNAPPROPRIATED FUND TRANSFER $47,550 $47,550 $47,550 $47,550 0.00% TOTAL OTHER REVENUE $47,550 $47,550 $47,550 $47,550 0.00% TOTAL GENERAL FUND REVENUE $9,472,089 $9,022,066 $9,518,571 $9,756,686 2.50% Page 167 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE CITY COUNCIL 4110 SALARIES-REGULAR $22,592 $22,431 $22,500 $22,500 0.00% 4133 WORKERS COMPENSATION $119 $164 $150 $165 10.00% 4135 FICA $1,728 $1,716 $1,721 $1,721 0.00% TOTAL HUMAN RESOURCES $24,439 $24,310 $24,371 $24,386 0.06% 4220 PROFESSIONAL SERVICES $780 $0 $1,000 $1,000 0.00% 4400 TRAINING $0 $225 $1,500 $1,000 -33.33% 4490 HALLOWEEN BONFIRE $1,197 $418 $1,500 $1,200 -20.00% 4490 FIREWORKS $10,000 $14,250 $14,000 $14,000 0.00% 4490 MISCELLANEOUS $2,382 $5,763 $6,000 $6,000 0.00% TOTAL OTHER CHARGES $14,359 $20,655 $24,000 $23,200 -3.33% 4600 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $38,798 $44,965 $48,371 $47,586 -1.62% CAPITAL OUTLAY ITEMS REQUESTED APPROVED CAT OBJ DESCRIPTION Page 168 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE ADMINISTRATION 4110 SALARIES-REGULAR $528,782 $570,869 $608,489 $635,342 4.41% 4115 SALARIES-OVERTIME $58 $0 $0 $0 0.00% 4131 INSURANCE $79,041 $83,728 $128,016 $128,016 0.00% 4133 WORKERS COMPENSATION $9,248 $12,290 $10,980 $12,078 10.00% 4134 PERA $37,827 $41,170 $45,637 $47,651 4.41% 4135 FICA $38,506 $42,319 $46,549 $48,603 4.41% 4137 EMPLOYEE ASSISTANCE PROGRAM $1,632 $1,754 $1,700 $1,700 0.00% TOTAL HUMAN RESOURCES $695,094 $752,130 $841,371 $873,390 3.81% 4200 RENTALS AND LEASES $146 $111 $400 $200 -50.00% 4209 CITY HALL RENT $65,000 $65,000 $65,000 $65,000 0.00% 4210 TELEPHONE $6,842 $6,267 $8,000 $2,000 -75.00% 4220 CITY ATTORNEY $10,004 $6,901 $12,000 $11,000 -8.33% 4220 AUDITOR $23,327 $24,095 $24,000 $25,000 4.17% 4220 CODIFIER-LINK TO CITY CODE $0 $0 $1,000 $500 -50.00% 4220 CODIFICATION SERVICES $3,165 $1,778 $4,500 $4,500 0.00% 4220 PROF SERVICES - JOB EVALUATION $2,688 $0 $1,000 $1,000 0.00% 4220 STAFF TRAINING $0 $0 $6,000 $4,500 -25.00% 4220 SAFETY TRAINING $0 $0 $2,400 $2,000 -16.67% 4220 COUNCIL RECORDING SERVICES $4,017 $3,797 $4,500 $5,000 11.11% 4220 MISCELLANEOUS $3,454 $20,124 $10,000 $13,000 30.00% 4221 RETAINER-CITY ATTORNEY $5,200 $7,100 $7,800 $8,400 7.69% 4240 LEGAL PUBLICATIONS $1,809 $2,181 $1,900 $2,200 15.79% 4250 LIABILITY AND AUTO INSURANCE $105,106 $101,547 $125,000 $135,000 8.00% 4268 NEWSLETTER $10,028 $14,507 $16,000 $17,000 6.25% TOTAL CONTRACTUAL SERVICES $240,786 $253,409 $289,500 $296,300 2.35% 4300 OFFICE SUPPLIES $6,794 $9,596 $7,000 $7,000 0.00% 4306 RECRUITMENT COSTS $140 $0 $500 $3,000 500.00% 4318 POSTAGE $1,946 $1,747 $2,000 $2,000 0.00% 4320 FUEL $1,170 $1,528 $1,200 $1,500 25.00% 4330 EQUIPMENT REPAIR $8,633 $5,033 $4,000 $7,500 87.50% 4331 MISCELLANEOUS FURNITURE/EQUIP $0 $0 $500 $500 0.00% TOTAL COMMODITIES $18,683 $17,903 $15,200 $21,500 41.45% CAT OBJ DESCRIPTION Page 169 4400 TRAINING $5,626 $7,272 $7,000 $7,500 7.14% 4402 BOOKS AND SUBSCRIPTIONS $0 $0 $3,100 $3,100 0.00%Polco 4404 MEMBERSHIP DUES $16,739 $16,883 $18,000 $17,000 -5.56% 4415 MILEAGE AND AUTO ALLOWANCE $2,573 $449 $500 $500 0.00% 4437 CREDIT CARD FEES $2,782 $3,798 $4,000 $4,000 0.00% 4480 CONTINGENCY $25,855 $31,600 $30,000 $28,000 -6.67% WSP ICE ARENA CONTRIBUTION $65,212 $114,637 $0 $0 0.00% 4490 MISCELLANEOUS $2,231 $3,884 $6,000 $4,500 -25.00% 4490 ARC PER DIEM $1,000 $1,275 $1,000 $1,000 0.00% TOTAL OTHER CHARGES $122,018 $179,796 $69,600 $65,600 -5.75% 4600 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $1,076,581 $1,203,238 $1,215,671 $1,256,790 3.38% CAPITAL OUTLAY ITEMS REQUESTED APPROVED Page 170 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE ELECTIONS 4110 SALARIES-REGULAR $26,343 $27,403 $28,045 $28,887 3.00% 4115 SALARIES-OVERTIME $5,505 $0 $8,000 $0 -100.00% 4125 SALARIES-ELECTION JUDGES $23,949 $0 $36,000 $0 -100.00% 4130 SALARIES-TEMPORARY $0 $0 $0 $0 0.00% 4131 INSURANCE $3,998 $4,893 $7,056 $7,056 0.00% 4134 PERA $2,385 $2,050 $2,703 $2,166 -19.87% 4135 FICA $2,865 $2,045 $2,758 $2,210 -19.87% TOTAL HUMAN RESOURCES $65,045 $36,391 $84,562 $40,319 -52.32% 4220 CONSULTING FEES $285 $0 $350 $0 -100.00% 4240 LEGAL PUBLICATIONS $218 $0 $300 $0 -100.00% TOTAL CONTRACTUAL SERVICES $503 $0 $650 $0 -100.00% 4300 OFFICE SUPPLIES $2,974 $1,369 $4,500 $0 -100.00% 4318 POSTAGE $1,844 $163 $3,000 $0 -100.00% 4330 DAKOTA COUNTY SHARED EQUIPMENT $0 $0 $0 $0 0.00% 4330 BALLOT COUNTER MAINTENANCE $3,083 $0 $3,100 $3,083 -0.55%LIC & MAINT 4330 ELECTRONIC POLL BOOKS $2,286 $2,286 $2,300 $0 -100.00% 4330 ELECTRONIC POLL BOOK MAINTENANC $0 $0 $1,400 $1,050 -25.00%KNOWINC LIC TOTAL COMMODITIES $10,187 $3,817 $14,300 $4,133 -71.10% 4415 MILEAGE AND AUTO ALLOWANCE $386 $64 $450 $0 -100.00% 4490 MISCELLANEOUS $2,889 $344 $4,400 $0 -100.00% 4490 10 NEW VOTING BOOTHS $1,687 $1,850 $2,300 $0 -100.00% TOTAL OTHER CHARGES $4,962 $2,258 $7,150 $0 -100.00% 4600 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $80,697 $42,465 $106,662 $44,452 -58.32% CAPITAL OUTLAY ITEMS REQUESTED APPROVED CAT OBJ DESCRIPTION Page 171 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE IT 4110 SALARIES-REGULAR $0 $0 $0 $0 0.00% 4115 SALARIES-OVERTIME $0 $0 $0 $0 0.00% 4110 IT STAFF POSITION $0 $0 $0 $0 0.00% 4131 INSURANCE $0 $0 $0 $0 0.00% 4134 PERA $0 $0 $0 $0 0.00% 4135 FICA $0 $0 $0 $0 0.00% TOTAL HUMAN RESOURCES $0 $0 $0 $0 0.00% 4210 TELEPHONE $490 $115 $24,000 $15,800 -34.17% 4220 WEBSITE COSTS $0 $0 $1,500 $3,000 100.00% LOGIS SUPPORT $49,020 $47,420 $30,000 $30,000 0.00% WEB SERVICES $1,300 $1,300 $1,500 $1,500 0.00% STATE OF MN LINE FEES (FIBER FEE)$1,332 $1,332 $12,600 $6,000 -52.38% SERVER HOSTING $0 $0 $28,000 $31,580 12.79% DAKOTA BROADBAND (DBB)$0 $2,230 $15,000 $17,500 16.67% TOTAL CONTRACTUAL SERVICES $52,142 $52,397 $112,600 $105,380 -6.41% 4301 COMPUTER SOFTWARE AND HARDWARE MICROSOFT LICENSES & CALS $0 $0 $21,150 $21,150 0.00% COMPUTER REPLACEMENT $13,420 $38,488 $23,200 $21,550 -7.11% MMD SYSTEM $0 $0 $7,000 $7,000 0.00% MISC HARDWARE & SOFTWARE $18,088 $0 $3,500 $3,500 0.00% LASERFICHE MAINTENANCE $9,764 $9,764 $10,300 $11,000 6.80% ADDITIONAL LASERFICHE LICENSES $0 $1,694 $2,500 $2,500 0.00% SOFTWARE MAINTENANCE/RENEWALS $0 $7,480 $13,800 $20,100 45.65% SERVER REPLACEMENT AND MAINTENAN $0 $0 $13,670 $6,700 -50.99% FIREWALL $0 $0 $7,460 $5,000 -32.98% DOOR ACCESS SYSTEM MAINTENANCE $0 $462 $2,000 $2,000 0.00% TOTAL COMMODITIES $41,272 $57,888 $104,580 $100,500 -3.90% 4400 TRAINING $0 $0 $750 $750 0.00% 4490 MISCELLANEOUS $0 $0 $0 $0 0.00% TOTAL OTHER CHARGES $0 $0 $750 $750 0.00% 4600 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $93,414 $110,285 $217,930 $206,630 -5.19% CAPITAL OUTLAY ITEMS REQUESTED APPROVED CAT OBJ DESCRIPTION Page 172 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE POLICE 4110 SALARIES-REGULAR/PATROL $1,165,930 $1,321,643 $1,361,231 $1,395,255 2.50% 4110 SALARIES-REGULAR/ADMINISTRATION $616,533 $694,060 $794,370 $814,663 2.55% 4115 SALARIES-OVERTIME/PATROL $34,142 $37,952 $80,946 $80,946 0.00% 4130 SALARIES-TEMPORARY $3,840 $2,363 $10,400 $10,400 0.00% 4131 INSURANCE $391,128 $450,512 $594,720 $614,880 3.39% 4133 WORKERS COMPENSATION $114,332 $151,950 $135,765 $149,342 10.00% 4134 PERA/PATROL $186,065 $218,958 $247,701 $257,497 3.95% 4134 PERA/ADMINISTRATION $90,860 $104,853 $128,183 $131,402 2.51% 4135 FICA/PATROL $19,495 $22,929 $21,062 $23,529 11.71% 4135 FICA/ADMINISTRATION $15,635 $17,148 $22,363 $19,589 -12.40% TOTAL HUMAN RESOURCES $2,637,960 $3,022,367 $3,396,741 $3,497,503 2.97% 4200 RENTALS AND LEASES $64,526 $68,896 $73,992 $73,992 0.00% 4209 CITY HALL RENT $76,803 $76,803 $76,803 $76,803 0.00% 4210 TELEPHONE $19,587 $17,722 $20,000 $20,000 0.00% 4220 POST LICENSE RENEWALS $810 $360 $810 $810 0.00% 4220 ATTORNEY FEES $6,247 $8,483 $4,000 $4,000 0.00% 4220 OTHER PROFESSIONAL SERVICES $3,387 $2,146 $5,000 $5,000 0.00% 4220 IT SERVICES - LOGIS $13,014 $18,054 $40,000 $40,000 0.00% 4222 PROSECUTIONS $70,692 $70,692 $70,692 $70,692 0.00% 4225 ANIMAL IMPOUNDING FEES $3,489 $315 $3,250 $2,000 -38.46% 4223 OTHER CONTRACTUAL SERVICES LEXIPOL $0 $8,312 $0 $8,500 100.00% BCA DEPARTMENT ACCESS CHARGE $0 $0 $1,100 $1,100 0.00% BCA MOBILE ACCESS CHARGE $2,880 $2,880 $3,000 $3,000 0.00% RECORDS MANAGEMENT SYSTEM $23,634 $25,594 $24,000 $24,000 0.00% AIRCARD $4,201 $4,437 $4,500 $4,500 0.00% LOGIS-APS TICKET WRITER $0 $0 $2,000 $2,000 0.00% LOGIS-APPLICATION SUPPORT $27,151 $37,452 $32,000 $32,000 0.00% LOGIS-SYSTEM DEVELOPMENT $1,548 $0 $1,548 $1,548 0.00% LOGIS INET $0 $0 $11,000 $11,000 0.00% LOGIS ANY CONNECT/MAPS $0 $0 $1,650 $1,650 0.00% LEASE LINE MN OFFICE TECH GROUP $1,488 $1,473 $3,000 $3,000 0.00% CJIIN $10,697 $11,219 $13,000 $13,000 0.00% INT. ASSOCIATION OF POLICE CHIEFS $825 $0 $850 $850 0.00% AUTOMATED PAWN $204 $0 $205 $0 -100.00% LEXISNEXIS $1,299 $1,853 $2,000 $2,000 0.00% LANGUAGE LINE - INTERPRETER SVCS $591 $497 $600 $600 0.00% TLO INVESTIGATIONS $567 $1,375 $4,000 $5,000 25.00% MISCELLANEOUS $0 $2,218 $0 $0 0.00% ELECTRONIC CRIMES TASK FORCE $18,000 $18,000 $18,000 $18,000 0.00% 4275 DCC ANNUAL RADIO FEE $10,638 $11,455 $13,095 $13,495 3.05% 4275 DCC ANNUAL FEE $193,873 $205,699 $232,171 $264,037 13.73% RADIO MAINTENANCE AGREEMENT $706 $0 $2,000 $2,000 0.00% TOTAL CONTRACTUAL SERVICES $556,857 $595,933 $664,266 $704,577 6.07% CAT OBJ DESCRIPTION Page 173 4300 OFFICE SUPPLIES $4,178 $3,133 $5,500 $5,500 0.00% 4301 COMPUTER SOFTWARE/HARDWARE $12,181 $26,000 $25,000 $25,000 0.00% 4305 OPERATING SUPPLIES $33,812 $12,184 $40,000 $40,000 0.00% 4305 POLICE RESERVES $0 $403 $4,000 $4,000 0.00% 4306 RECRUITMENT COSTS $22,056 $10,496 $15,000 $15,000 0.00% 4318 POSTAGE $655 $365 $1,000 $1,000 0.00% 4320 GAS AND OIL $42,672 $49,333 $45,000 $45,000 0.00% 4330 EQUIPMENT REPAIR/GENERAL $21,667 $36,241 $25,000 $25,000 0.00% 4330 EQUIPMENT REPAIR/CAR SET UP $3,660 $24,828 $45,000 $45,000 0.00% 4331 MISCELLANEOUS FURNITURE/EQUIP $9,080 $4,712 $11,000 $11,000 0.00% TOTAL COMMODITIES $149,961 $167,695 $216,500 $216,500 0.00% 4400 TRAINING $41,810 $37,980 $40,000 $40,000 0.00% 4402 BOOKS AND SUBSCRIPTIONS $173 $68 $500 $500 0.00% 4404 MEMBERSHIP DUES $9,831 $10,566 $12,000 $15,000 25.00% 4410 CLOTHING AND EQUIPMENT $12,708 $15,584 $20,000 $20,000 0.00%Increase in SWAT 4430 CAR WASHES $0 $0 $1,000 $1,000 0.00% 4490 MISCELLANEOUS $609 $521 $5,100 $5,100 0.00% 4490 SHREDDING $656 $853 $1,000 $1,000 0.00% TOTAL OTHER CHARGES $65,787 $65,571 $79,600 $82,600 3.77% 4610 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $3,410,565 $3,851,567 $4,357,107 $4,501,180 3.31% CAPITAL OUTLAY ITEMS REQUESTED APPROVED Page 174 2018 2019 2020 2021 % ACT UAL ACTUAL BUDGET PRELIMINARY CHANGE FIRE 4110 SALARIES-REGULAR/ADMIN $45,148 $46,330 $75,221 $77,477 3.00% 4110 SALARIES-REGULAR/FIREFIGHTERS $158,575 $185,620 $175,131 $180,385 3.00% 4131 INSURANCE $4,594 $4,820 $5,040 $5,040 0.00% 4132 INSURANCE-LONG TERM DISABILITY $2,848 $3,049 $3,000 $3,000 0.00% 4133 WORKERS COMPENSATION $39,512 $52,514 $46,920 $51,612 10.00% 4134 PERA/ADMIN $3,389 $3,474 $3,565 $3,672 3.00% 4135 FICA/ADMIN $3,447 $3,532 $5,755 $5,927 2.99% 4135 FICA/FIREFIGHTERS $3,496 $4,921 $2,539 $2,616 3.03% TOTAL HUMAN RESOURCES $261,009 $304,260 $317,171 $329,729 3.96% 4200 RENTALS AND LEASES $16 $570 $100 $100 0.00% 4210 TELEPHONE $5,058 $4,491 $5,500 $6,400 16.36% 4210 DAKOTA COUNTY FIBER LEASE $3,000 $0 -100.00% 4211 ELECTRICAL SERVICE $8,331 $8,235 $18,000 $10,000 -44.44% 4212 GAS SERVICE $4,991 $7,378 $10,000 $10,000 0.00% 4213 SOLAR LEASE $1,724 $1,903 $1,983 $2,079 4.84% PROFESSIONAL SERVICES 4220 LOGIS - IT SERVICES $2,097 $8,307 $4,000 $4,000 0.00% 4220 AUDIT $7,125 $7,200 $7,000 $7,500 7.14% 4220 LEGAL $1,643 $1,465 $1,500 $1,500 0.00% 4220 OTHER PROFESSIONAL SERVICES $6,921 $0 $2,000 $2,000 0.00% 4240 LEGAL PUBLICATIONS $37 $271 $500 $500 0.00% 4244 MEDICAL EXAMS $6,766 $3,226 $8,000 $8,000 0.00% 4268 SNOWPLOW FIREFIGHTER DRIVEWAYS $14,175 $15,560 $7,000 $12,000 71.43% 4268 DEPARTMENT REPORT PRINTING $3,063 $2,835 $3,250 $3,500 7.69% 4268 STATIC TESTING $2,877 $7,073 $8,650 $8,850 2.31% 4275 DCC FEE $17,339 $18,616 $18,300 $8,898 -51.38% 4280 RUBBISH COLLECTION $1,337 $1,636 $1,300 $1,400 7.69% TOTAL CONTRACTUAL SERVICES $83,500 $88,766 $100,083 $86,727 -13.34% 4300 OFFICE SUPPLIES $241 $302 $1,500 $1,500 0.00% 4301 COMPUTER SOFTWARE $2,974 $3,222 $6,900 $4,700 -31.88% 4301 COMPUTER HARDWARE $10,849 $0 $4,000 $2,000 -50.00% 4305 OPERATING SUPPLIES BOOTS/BUNKERPANTS/COATS $20,093 $567 $18,500 $19,000 2.70% HOSE/NOZZELS/FITTINGS $2,355 $1,145 $5,000 $5,000 0.00% MISCELLANEOUS OPERATING SUPPLIES $22,399 $13,349 $17,000 $17,000 0.00% FIRE PREVENTION $2,690 $0 $7,000 $7,000 0.00% 4318 POSTAGE $172 $278 $300 $300 0.00% 4320 GAS AND OIL $5,825 $6,126 $6,500 $6,500 0.00% 4330 EQUIPMENT REPAIR COPIER MAINTENANCE $944 $534 $1,500 $1,500 0.00% RADIO REPAIRS AND MAINTENANCE $1,849 $460 $1,000 $1,000 0.00% APPARATUS REPAIRS AND MAINTENANCE $52,562 $15,338 $25,000 $25,000 0.00% SCBA SERVICE $0 $0 $2,500 $1,000 -60.00% OTHER REPAIRS AND MAINTENANCE $0 $10,110 $2,000 $2,000 0.00% 4331 EQUIPMENT $1,500 $0 $0 $0 0.00% 4335 BUILDING MAINTENANCE $11,705 $8,465 $10,000 $10,000 0.00% TOTAL COMMODITIES $136,158 $59,897 $108,700 $103,500 -4.78% CAT OBJ DESCRIPTION Page 175 4400 TRAINING $19,478 $32,813 $15,000 $15,000 0.00% 4402 BOOKS AND SUBSCRIPTIONS $1,460 $857 $1,500 $1,500 0.00% 4403 TRAINING EXPENSES TRAINING $3,083 $2,479 $5,000 $5,000 0.00% 4404 MEMBERSHIP DUES $0 $555 $1,750 $1,750 0.00% 4410 UNIFORMS $3,249 $7,647 $5,500 $7,000 27.27% 4415 MILEAGE $0 $0 $250 $250 0.00% 4425 WATER SERVICE $1,881 $1,300 $2,500 $2,500 0.00% 4490 MISCELLANEOUS $1,138 $88 $1,000 $950 -5.00% TOTAL OTHER CHARGES $30,289 $45,739 $32,500 $33,950 4.46% 4630 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $510,956 $498,662 $558,454 $553,906 -0.81% CAPITAL OUTLAY ITEMS REQUESTED APPROVED Page 176 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE BUILDING OFFICIAL 4110 SALARIES-REGULAR $0 $0 $0 $0 0.00% 4115 SALARIES-OVERTIME $0 $0 $0 $0 0.00% 4131 INSURANCE $0 $0 $0 $0 0.00% 4133 INSURANCE-WORKERS COMPENSATIO $0 $0 $0 $0 0.00% 4134 PERA $0 $0 $0 $0 0.00% 4135 FICA $0 $0 $0 $0 0.00% TOTAL HUMAN RESOURCES $0 $0 $0 $0 0.00% 4209 CITY HALL RENT $12,000 $12,000 $12,000 $12,000 0.00% 4210 TELEPHONE $4,270 $5,296 $5,500 $5,500 0.00% 4220 PROFESSIONAL SERVICES $0 $500 $500 0.00% CITY ATTORNEY $1,369 $116 $1,500 $1,500 0.00% CITY ENGINEER/GOPHER ONE $504 $764 $0 $0 0.00% 4231 CONTRACTED INSPECTIONS $80,745 $91,998 $95,000 $95,000 0.00% 4240 LEGAL PUBLICATION $0 $0 $0 $0 0.00% TOTAL CONTRACTUAL SERVICES $98,888 $110,174 $114,500 $114,500 0.00% 4300 OFFICE SUPPLIES $1,249 $380 $1,250 $1,250 0.00% 4305 OPERATING SUPPLIES $1,246 $544 $500 $500 0.00% 4318 POSTAGE $1,003 $940 $1,000 $1,000 0.00% 4320 GAS AND OIL $0 $0 $0 $0 0.00% 4330 VEHICLE MAINTENANCE $882 $117 $0 $0 0.00% TOTAL COMMODITIES $4,380 $1,981 $2,750 $2,750 0.00% 4400 TRAINING $0 $0 $500 $500 0.00% 4402 BOOKS AND SUBSCRIPTIONS $0 $0 $250 $250 0.00% 4404 MEMBERSHIP DUES $135 $135 $125 $125 0.00% 4490 MISCELLANEOUS $4 $0 $500 $500 0.00% TOTAL OTHER CHARGES $139 $135 $1,375 $1,375 0.00% 4620 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $103,407 $112,290 $118,625 $118,625 0.00% CAPITAL OUTLAY ITEMS REQUESTED APPROVED CAT OBJ DESCRIPTION Page 177 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE PW - STREETS 4110 SALARIES-REGULAR $357,206 $343,091 $353,875 $379,423 7.22% 4115 SALARIES-OVERTIME $9,887 $12,912 $22,375 $22,375 0.00% 4130 SALARIES-TEMPORARY $3,905 $9,484 $5,000 $5,000 0.00% 4131 INSURANCE $94,718 $98,013 $107,654 $107,654 0.00% 4133 WORKERS COMPENSATION $46,238 $61,452 $54,905 $60,396 10.00% 4134 PERA $26,183 $26,162 $28,219 $30,135 6.79% 4135 FICA $27,189 $27,703 $29,165 $31,120 6.70% TOTAL HUMAN RESOURCES $565,326 $578,817 $601,193 $636,103 5.81% 4200 RENTALS AND LEASES $3,882 $3,937 $5,500 $5,500 0.00% 4210 TELEPHONE $3,800 $3,273 $4,000 $4,000 0.00% 4211 ELECTRICAL-STREET LIGHTS $21,524 $20,568 $22,500 $22,500 0.00% 4211 ELECTRICAL-PUBLIC WORKS GARAGE $2,292 $2,210 $3,000 $3,000 0.00% 4211 ELECTRICAL-TRAFFIC SIGNALS $3,635 $3,546 $4,000 $4,000 0.00% 4212 GAS SERVICE $4,091 $4,258 $5,000 $5,000 0.00% 4213 SOLAR LEASE $1,714 $1,902 $1,983 $2,079 4.84% 4220 PROFESSIONAL SERVICES $17,888 $2,214 $15,000 $5,000 -66.67% 4220 CITY ATTORNEY $405 $481 $1,000 $1,000 0.00% 4240 LEGAL PUBLICATIONS $365 $22 $500 $500 0.00% 4280 RUBBISH REMOVAL $1,418 $2,100 $2,500 $2,500 0.00% TOTAL CONTRACTUAL SERVICES $61,014 $44,512 $64,983 $55,079 -15.24% 4300 OFFICE SUPPLIES $1,173 $725 $1,000 $1,000 0.00% 4305 OPERATING SUPPLIES $12,553 $21,585 $18,000 $18,000 0.00% 4306 RECRUITMENT COSTS $0 $0 $500 $500 0.00% 4318 POSTAGE $28 $35 $50 $50 0.00% 4320 GAS AND OIL $29,548 $29,212 $30,000 $30,000 0.00% 4330 EQUIPMENT REPAIR $86,741 $85,173 $60,000 $75,000 25.00% 4331 MISC OFFICE/COMPUTER EQUIPMENT $895 $1,023 $1,000 $1,000 0.00% 4335 PUBLIC WORKS GARAGE MAINTENANCE BUILDING MAINTENANCE $6,421 $8,451 $6,000 $7,500 25.00% CUSTODIAL SERVICES $800 $800 $1,750 $1,600 -8.57% 4336 SNOW REMOVAL DAMAGE REPAIR $3,383 $1,683 $5,000 $5,000 0.00% 4340 STORM DAMAGE $0 $18 $0 $0 0.00% TOTAL COMMODITIES $141,542 $148,705 $123,300 $139,650 13.26% CAT OBJ DESCRIPTION Page 178 4400 TRAINING $1,710 $798 $2,500 $2,500 0.00% 4404 MEMBERSHIP DUES $0 $300 $150 $300 100.00% 4410 CLOTHING AND EQUIPMENT $4,042 $4,839 $5,000 $5,000 0.00% 4415 MILEAGE AND AUTO ALLOWANCE $248 $27 $250 $250 0.00% 4420 STREET SIGNS AND POSTS $7,243 $11,230 $12,000 $12,000 0.00% 4421 SAND AND SALT $116,013 $101,154 $125,000 $125,000 0.00% 4422 STREET MAINTENANCE MATERIAL $20,766 $36,005 $30,000 $30,000 0.00% 4423 CRACK SEALING/CHIP SEALING $104,642 $119,640 $100,000 $100,000 0.00% 4424 STREET SWEEPING AND STRIPING $53,606 $40,855 $50,000 $50,000 0.00% 4425 WATER SERVICE-PUBLIC WORKS $303 $273 $500 $500 0.00% 4426 BONFIRE CLEAN UP $0 $863 $500 $1,000 100.00% 4490 MISCELLANEOUS $269 $1,946 $400 $500 25.00% 4500 TREE REMOVAL $29,756 $30,816 $40,000 $45,000 12.50% TOTAL OTHER CHARGES $338,598 $348,746 $366,300 $372,050 1.57% 4620 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $1,106,480 $1,120,780 $1,155,776 $1,202,882 4.08% CAPITAL OUTLAY ITEMS REQUESTED APPROVED Page 179 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE PW - PARKS 4110 SALARIES-REGULAR $315,333 $332,791 $305,559 $343,912 12.55% 4115 SALARIES-OVERTIME $22,403 $25,304 $10,000 $10,000 0.00% 4130 SALARIES-TEMPORARY $46,513 $43,055 $60,000 $50,000 -16.67% 4131 INSURANCE $77,229 $85,922 $104,227 $104,227 0.00% 4133 WORKERS COMPENSATION $18,495 $24,579 $21,960 $24,156 10.00% 4134 PERA $23,912 $26,454 $23,667 $26,543 12.15% 4135 FICA $29,312 $32,573 $28,731 $30,900 7.55% TOTAL HUMAN RESOURCES $533,197 $570,678 $554,144 $589,738 6.42% 4200 RENTALS AND LEASES $11,704 $17,798 $15,000 $18,000 20.00% 4210 TELEPHONE $3,189 $4,747 $3,500 $4,000 14.29% 4211 ELECTRICAL-PW/WARMING HOUSES $2,292 $2,210 $3,000 $3,000 0.00% 4211 ELECTRICAL-COMF. STAT./AERATOR $6,491 $4,842 $6,000 $6,000 0.00% 4212 GAS SERVICE $4,787 $5,026 $7,500 $7,500 0.00% 4213 SOLAR LEASE $1,818 $1,902 $1,983 $2,079 4.84% 4220 PROFESSIONAL SERVICES CITY ATTORNEY $285 $1,697 $500 $500 0.00% HR TRAINING/TESTING $1,549 $1,575 $1,000 $1,600 60.00% 4240 LEGAL PUBLICATION $214 $287 $0 $0 0.00% 4268 OTHER CONTRACT SERVICES SIBLEY PARK MAINTENANCE $19,722 $21,153 $22,500 $22,500 0.00% 4280 RUBBISH REMOVAL $1,418 $1,751 $2,500 $2,500 0.00% TOTAL CONTRACTUAL SERVICES $53,469 $62,988 $63,483 $67,679 6.61% 4300 OFFICE SUPPLIES $1,777 $1,134 $1,750 $1,750 0.00% 4305 OPERATING SUPPLIES $14,402 $15,536 $18,000 $18,000 0.00% 4306 RECRUITMENT COSTS $0 $315 $2,000 $2,000 0.00% 4318 POSTAGE $129 $150 $150 $150 0.00% 4320 GAS AND OIL $15,340 $15,472 $17,500 $17,500 0.00% 4330 EQUIPMENT REPAIRS AND MAINTENANCE EQUIPMENT REPAIRS/MAINTENANCE $43,784 $34,698 $47,500 $46,500 -2.11% PARKS MAINTENANCE SUPPLIES $67,629 $67,603 $50,000 $60,000 20.00% CHEMICALS AND FERTILIZER $0 $0 $14,000 $14,000 0.00% PARK MAINTENANCE COSTS $3,353 $0 $19,000 $19,000 0.00% ERADICATE INVASIVE PLANTS $10,000 $21,096 $30,000 $30,000 0.00% TOWN CENTRE LANDSCAPE MAINT.$5,726 $0 $9,000 $9,000 0.00% PILOT KNOB RESTORATION $10,700 $5,000 $11,000 $11,000 0.00% 4331 MISC OFFICE/COMPUTER EQUIP $895 $523 $1,000 $1,000 0.00% 4335 BUILDING MAINTENANCE BUILDING MAINTENANCE $7,185 $10,766 $6,000 $7,500 25.00% CUSTODIAL SERVICES $800 $800 $1,750 $1,600 -8.57% TOTAL COMMODITIES $181,720 $173,093 $228,650 $239,000 4.53% 4400 TRAINING $1,952 $2,973 $7,000 $7,000 0.00% 4404 MEMBERSHIP DUES $615 $864 $750 $750 0.00% 4410 CLOTHING AND EQUIPMENT $2,840 $4,734 $2,500 $5,000 100.00% 4415 MILEAGE AND AUTO ALLOWANCE $79 $17 $250 $250 0.00% 4425 WATER SERVICE PUBLIC WORKS $303 $273 $500 $500 0.00% PARKS $12,888 $15,008 $15,000 $16,000 6.67% CAT OBJ DESCRIPTION Page 180 4490 MISCELLANEOUS $501 $2,759 $1,000 $1,000 0.00% 4490 COMMISSIONER PER DIEM $1,925 $0 $2,100 $2,100 0.00% 4500 TREE REMOVAL $11,628 $20,958 $25,000 $30,000 20.00% TOTAL OTHER CHARGES $32,731 $47,587 $54,100 $62,600 15.71% 4600 CAPITAL OUTLAY $19,330 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $19,330 $0 $0 $0 0.00% TOTAL EXPENDITURES $820,447 $854,346 $900,377 $959,017 6.51% CAPITAL OUTLAY ITEMS REQUESTED APPROVED Page 181 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE RECREATION RECREATION CIVICREC SOFTWARE $0 $7,500 $0 $0 0.00% 4435 SOFTBALL LEAGUES $7,017 $7,034 $7,750 $7,750 0.00% 4435 TENNIS LESSONS $1,341 $3,010 $3,000 $3,000 0.00% 4435 SUMMER CONCERTS $2,091 $4,657 $4,000 $4,750 18.75% 4435 SAFETY CAMP $1,616 $231 $1,700 $1,700 0.00% 4435 PRINCESS BALL/SUPERHERO $1,029 $1,189 $1,500 $1,500 0.00% 4435 TOUR DE REC $0 $0 $1,000 $1,000 0.00% WORKOUTS IN THE PARK $0 $0 $500 $0 -100.00% CONTRACTED PROGRAMS $0 $7,390 $3,000 $11,250 275.00% SENIORS PROGRAMMING $0 $0 $1,000 $1,000 0.00% 4435 SUMMER PLAYHOUSE $455 $0 $0 $0 0.00% 4435 PROGRAM SUPPLIES/EQUIPMENT $0 $2,785 $1,600 $1,800 12.50% 4435 FIELD TRIPS $2,130 $3,086 $6,000 $5,000 -16.67% 4435 SUMMER PLAYGROUND PROGRAM $970 $2,285 $2,700 $1,500 -44.44% 4435 RECREATION OFFICE SUPPLIES $191 $0 $550 $550 0.00% 4435 KIDS FISHING DERBY $1,470 $1,719 $1,750 $1,750 0.00% 4435 YOUTH AND STAFF SHIRTS $2,497 $2,455 $2,500 $2,500 0.00% 4435 SKATEBOARD CAMPS/CLINICS $4,188 $0 $3,750 $0 -100.00%Moved to contracted services 4435 SCHOLARSHIP PROGRAM $0 $1,000 $1,000 0.00% PARK CELEBRATION $910 $1,973 $4,000 $2,000 -50.00% TRANSLATION SERVICES $0 $0 $0 $900 100.00% MISCELLANEOUS $0 $1,000 $1,000 0.00% 4436 ONLINE REGISTRATION FEES $1,801 $2,004 $1,900 $2,250 18.42% 4400 CONFERENCES AND SCHOOLS $842 $0 $2,450 $2,450 0.00% 4400 TUITION REIMBURSEMEN $0 $0 $3,000 $3,000 0.00% TOTAL RECREATION CHARGES $28,548 $47,317 $55,650 $57,650 3.59% BUDGET IMPROVEMENT REQUEST CAT OBJ DESCRIPTION Page 182 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE COMMUNITY DEVELOPMENT 4110 SALARIES-REGULAR $98,284 $104,662 $111,039 $118,372 6.60% 4115 SALARIES-OVERTIME $0 $0 $0 $0 0.00% 4130 SALARIES-TEMPORARY $0 $0 $0 $0 0.00% 4131 INSURANCE $19,200 $20,160 $20,160 $20,160 0.00% 4133 WORKERS COMPENSATION $0 $0 $0 $0 0.00% 4134 PERA $7,371 $7,850 $8,328 $8,878 6.60% 4135 FICA $6,455 $7,020 $8,494 $9,055 6.60% TOTAL HUMAN RESOURCES $131,310 $139,692 $148,021 $156,465 5.70% 4220 PROFESSIONAL SERVICES CONSULTING PLANNER $0 $0 $10,000 $10,000 0.00% COMP PLAN UPDATE $36,353 $7,848 $10,000 $5,000 -50.00% CITY ATTORNEY $11,111 $8,544 $13,000 $13,000 0.00% OPEN TO BUSINESS - DAKOTA COUNTY $2,755 $2,755 $2,600 $2,600 0.00% DAKOTA COUNTY CHAMBER DIRECTORIES $0 $0 $1,000 $1,000 0.00% PLANNING COMMISSIONER-MINUTES $2,369 $2,858 $2,000 $3,000 50.00% RESOLUTION FILING WITH COUNTY $1,046 $1,813 $1,500 $1,500 0.00% OTHER PROFESSIONAL SERVICES $1,200 $0 $500 $500 0.00% 4222 PROSECUTIONS $0 $0 $2,000 $2,000 0.00% 4240 LEGAL PUBLICATIONS $978 $1,259 $2,000 $2,000 0.00% TOTAL CONTRACTUAL SERVICES $55,812 $25,076 $44,600 $40,600 -8.97% 4300 OFFICE SUPPLIES $2,577 $1,084 $2,500 $2,500 0.00% 4318 POSTAGE $925 $821 $1,500 $1,500 0.00% 4330 EQUIPMENT REPAIR - VEHICLE MNTCE $0 $0 $500 $500 0.00% TOTAL COMMODITIES $3,502 $1,905 $4,500 $4,500 0.00% 4400 TRAINING $815 $278 $2,500 $3,500 40.00% 4402 BOOKS AND SUBSCRIPTIONS $0 $0 $100 $100 0.00% 4404 MEMBERSHIP DUES $414 $414 $500 $500 0.00% 4415 MILEAGE AND AUTO ALLOWANCES $0 $0 $300 $300 0.00% 4490 PLANNING COMMISSION PER DIEM $2,475 $1,750 $2,500 $2,500 0.00% 4490 MISCELLANEOUS $897 $812 $500 $500 0.00% TOTAL OTHER CHARGES $4,601 $3,254 $6,400 $7,400 15.63% 4600 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $195,225 $169,927 $203,521 $208,965 2.67% CAPITAL OUTLAY ITEMS REQUESTED APPROVED CAT OBJ DESCRIPTION Page 183 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE RECYCLING 4110 SALARIES-REGULAR $0 $0 $0 $0 0.00% 4115 SALARIES-OVERTIME $0 $0 $0 $0 0.00% 4131 INSURANCE $0 $0 $0 $0 0.00% 4133 WORKERS COMPENSATION $0 $0 $0 $0 0.00% 4134 PERA $0 $0 $0 $0 0.00% 4135 FICA $0 $0 $0 $0 0.00% TOTAL HUMAN RESOURCES $0 $0 $0 $0 0.00% 4220 CLEAN UP DAY/RECYCLING SUPPLIES $11,939 $17,063 $12,800 $12,800 0.00% 4220 SHARED RECYCLING POSITION $21,617 $24,138 $18,200 $18,200 0.00% 4268 CITY NEWSLETTER $260 $0 $0 $0 0.00% TOTAL CONTRACTUAL SERVICES $33,816 $41,201 $31,000 $31,000 0.00% 4300 OFFICE SUPPLIES $0 $0 $0 $0 0.00% 4318 POSTAGE $0 $0 $0 $0 0.00% TOTAL COMMODITIES $0 $0 $0 $0 0.00% 4415 MILEAGE AND AUTO ALLOWANCE $0 $0 $100 $100 0.00% 4490 MISCELLANEOUS $0 $0 $500 $500 0.00% TOTAL OTHER CHARGES $0 $0 $600 $600 0.00% 4600 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $33,816 $41,201 $31,600 $31,600 0.00% CAPITAL OUTLAY ITEMS REQUESTED APPROVED NONE CAT OBJ DESCRIPTION Page 184 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE ENGINEERING 4110 SALARIES-REGULAR $253,963 $304,362 $315,497 $330,683 4.81% 4115 SALARIES-OVERTIME $3,070 $6,418 $10,000 $10,000 0.00% 4130 SALARIES-TEMPORARY $0 $0 $10,000 $10,000 0.00% 4131 INSURANCE $52,456 $69,665 $72,778 $72,778 0.00% 4133 WORKERS COMPENSATION $4,961 $6,594 $5,895 $6,485 10.01% 4134 PERA $18,415 $22,708 $24,412 $25,551 4.67% 4135 FICA $19,072 $24,281 $25,666 $26,827 4.52% TOTAL HUMAN RESOURCES $351,937 $434,029 $464,248 $482,324 3.89% 4200 RENTALS AND LEASES $846 $870 $900 $900 0.00% 4209 CITY HALL RENT $49,329 $49,329 $49,329 $49,329 0.00% 4210 TELEPHONE $3,928 $3,033 $4,000 $4,000 0.00% 4220 PROFESSIONAL SERVICES CITY AUDIT $3,325 $3,195 $3,500 $3,500 0.00% OTHER PROFESSIONAL SERVICES $51 $37 $2,000 $2,000 0.00% 4250 LIABILITY AND AUTO INSURANCE $1,530 $10,376 $10,000 $10,500 5.00% TOTAL CONTRACTUAL SERVICES $59,009 $66,840 $69,729 $70,229 0.72% 4300 OFFICE SUPPLIES $1,406 $1,064 $2,000 $2,000 0.00% 4301 COMPUTER SOFTWARE $0 $0 $0 $0 0.00% 4305 OPERATING SUPPLIES $2,196 $555 $1,200 $1,200 0.00% 4318 POSTAGE $33 $112 $300 $300 0.00% 4320 GAS AND OIL $1,575 $1,829 $2,000 $2,000 0.00% 4330 EQUIPMENT REPAIR $2,895 $480 $1,500 $1,500 0.00% 4331 MISCELLANEOUS OFFICE/COMPUTER EQUIPMENT MISCELLANEOUS EQUIPMENT $0 $0 $3,000 $3,000 0.00% TOTAL COMMODITIES $8,105 $4,041 $10,000 $10,000 0.00% 4400 TRAINING $650 $2,509 $2,500 $2,500 0.00% 4402 BOOKS AND SUBSCRIPTIONS $0 $0 $100 $100 0.00% 4404 MEMBERSHIP DUES $123 $0 $500 $500 0.00% 4410 CLOTHING AND EQUIPMENT $0 $267 $500 $500 0.00% 4415 MILEAGE AND AUTO ALLOWANCE $0 $0 $1,000 $1,000 0.00% 4490 MISCELLANEOUS $228 $93 $250 $250 0.00% TOTAL OTHER CHARGES $1,001 $2,869 $4,850 $4,850 0.00% 4620 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $420,052 $507,778 $548,827 $567,403 3.38% CAPITAL OUTLAY ITEMS REQUESTED APPROVED CAT OBJ DESCRIPTION Page 185 UTILITY FUND FUND 15 REVENUES REVENUE SOURCE 2018 ACTUAL 2019 ACTUAL 2019 BUDGET 2020 BUDGET 2021 BUDGET % CHANGE SEWER RENTAL $2,006,458 $2,041,989 $2,292,000 $2,292,000 $2,178,802 -4.94% SEWER PERMITS $3,150 $1,350 $1,500 $1,500 $1,500 0.00% LILYDALE LIFT STATION MAINT.$2,500 $2,500 $3,000 $3,000 $3,000 0.00% MISCELLANEOUS INCOME $13,798 $13,576 $10,000 $10,000 $10,000 0.00% INTERST INCOME $10,000 $10,000 $10,000 $10,000 $10,000 0.00% UNAPPROPRIATED TRANSFER -$11,150 -$11,150 -$11,150 -$11,150 -$11,150 0.00% TOTAL UTILITY FUND REVENUE $2,024,756 $2,058,265 $2,305,350 $2,305,350 $2,192,152 -4.91% Page 186 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE SEWER UTILITY 4110 SALARIES-REGULAR $138,071 $130,169 $137,990 $143,219 3.79% 4115 SALARIES-OVERTIME $1,615 $2,214 $5,000 $5,000 0.00% 4130 SALARIES-TEMPORARY $3,077 $4,000 $5,500 $5,500 0.00% 4131 INSURANCE $24,328 $23,382 $38,102 $38,102 0.00% 4133 WORKERS COMPENSATION $10,837 $14,404 $12,870 $14,157 10.00% 4134 PERA $12,661 $5,837 $10,724 $11,116 3.66% 4135 FICA $11,615 $10,640 $11,359 $11,760 3.53% 4139 OPEB $1,991 -$3,684 $0 $0 0.00% TOTAL HUMAN RESOURCES $204,195 $186,962 $221,545 $228,854 3.30% 4200 RENTALS AND LEASES $2,237 $2,549 $7,000 $7,000 0.00% 4209 CITY HALL RENT $6,907 $6,907 $6,904 $6,904 0.00% 4210 TELEPHONE $7,559 $6,990 $8,000 $8,000 0.00% 4211 ELECTRIC SERVICE PUBLIC WORKS GARAGE $2,292 $2,210 $3,000 $3,000 0.00% LIFT STATIONS $10,794 $12,241 $12,000 $12,500 4.17% 4212 GAS SERVICE PUBLIC WORKS GARAGE $4,091 $4,258 $5,000 $5,000 0.00% LIFT STATIONS $1,244 $1,440 $1,250 $1,500 20.00% 4213 SOLAR LEASE $1,610 $1,902 $1,983 $2,079 4.84% 4220 PROFESSIONAL SERVICES $15,000 $15,000 0.00% CITY ENGINEER $7,710 $5,455 $0 $0 0.00% CITY AUDIT $2,834 $2,881 $3,000 $3,000 0.00% SUMP PUMP INSPECTIONS $6,991 $0 $0 $0 0.00% TRAINING $0 $0 $500 $500 0.00% OTHER PROFESSIONAL SERVICES $1,710 $4,546 $0 $0 0.00% 4240 LEGAL PUBLICATIONS $101 $51 $250 $250 0.00% 4250 LIABILITY AND AUTO INSURANCE $8,387 $9,026 $9,000 $9,500 5.56% 4280 RUBBISH REMOVAL $6,346 $1,751 $2,500 $2,500 0.00% TOTAL CONTRACTUAL SERVICES $70,813 $62,208 $75,387 $76,733 1.79% 4300 OFFICE SUPPLIES $1,317 $1,378 $2,000 $2,000 0.00% 4305 OPERATING SUPPLIES $9,059 $9,453 $15,000 $15,000 0.00% 4318 POSTAGE $4,752 $4,307 $5,000 $5,000 0.00% 4320 GAS AND OIL $4,289 $3,668 $5,000 $5,000 0.00% 4330 EQUIPMENT REPAIRS AND MAINTENANCE SEWER CLEANING/TELEVISING $69,585 $123,007 $62,000 $62,000 0.00% SEWER LINING $0 $0 $250,000 $125,000 -50.00% ROOT CHEMICALS $5,412 $7,933 $5,000 $5,000 0.00% HYDRANT MARKERS $0 $467 $750 $750 0.00% SOFTWARE SUPPORT $0 $795 $2,000 $2,000 0.00% LIFT STATIONS MAINTENANCE $0 $0 $15,000 $15,000 0.00% MISCELLANEOUS EQUIPMENT REPAIRS $39,258 $32,273 $30,000 $35,000 16.67% 4331 FURNITURE/EQUIPMENT $895 $523 $1,200 $1,200 0.00% 4335 PUBLIC WORKS GARAGE MAINTENANCE BUILDING MAINTENANCE $6,314 $8,372 $5,000 $7,500 50.00% CUSTODIAL SERVICES $800 $800 $1,500 $1,600 6.67% TOTAL COMMODITIES $141,681 $192,975 $399,450 $282,050 -29.39% CAT OBJ DESCRIPTION Page 187 4400 TRAINING $1,386 $2,220 $2,500 $2,500 0.00% 4404 MEMBERSHIP DUES $911 $0 $500 $500 0.00% 4410 CLOTHING AND EQUIPMENT $0 $1,248 $750 $750 0.00% 4415 MILEAGE AND AUTO ALLOWANCE $16 $0 $250 $250 0.00% 4425 WATER SERVICE $303 $273 $300 $300 0.00% 4437 CREDIT CARD FEES $787 $1,068 $900 $1,000 11.11% 4449 MWCC CHARGES $1,343,712 $1,363,415 $1,387,527 $1,467,725 5.78% 4490 MISCELLANEOUS $7,591 $4,480 $4,000 $4,000 0.00% 4491 DEPRECIATION $177,821 $181,575 $178,000 $178,000 0.00% TOTAL OTHER CHARGES $1,532,527 $1,554,280 $1,574,727 $1,655,025 5.10% 4600 CAPITAL OUTLAY $0 $0 $605,000 $0 -100.00% TOTAL CAPITAL OUTLAY $0 $0 $605,000 $0 -100.00% TOTAL EXPENDITURES $1,949,216 $1,996,426 $2,876,109 $2,242,662 -22.02% CAPITAL OUTLAY ITEMS REQUESTED APPROVED Ridge Place $315,000 Page 188 STORM WATER UTILITY FUND 29 REVENUES REVENUE SOURCE 2018 ACTUAL 2019 ACTUAL 2019 BUDGET 2020 BUDGET 2021 BUDGET % CHANGE STORM WATER UTILITY FEES $501,173 $507,769 $476,000 $476,000 $550,000 15.55% MISCELLANSOUS INCOME $5,800 $400 $0 $0 $0 0.00% INTEREST INCOME $3,056 $11,188 $1,500 $1,500 $1,500 0.00% UNAPPROPRIATED TRANSFER -$9,650 -$9,650 -$9,650 -$9,650 -$9,650 0.00% TOTAL STORM UTILITY FUND REVENUE $500,379 $509,707 $467,850 $467,850 $541,850 15.82% Page 189 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE STORM WATER UTILITY 4110 SALARIES-REGULAR $21,249 $22,084 $22,572 $23,249 3.00% 4131 INSURANCE $3,312 $4,093 $6,250 $6,250 0.00% 4134 PERA $349 $923 $1,693 $1,744 3.01% 4135 FICA $1,589 $1,628 $1,726 $1,778 3.01% 4139 OPEB $255 -$238 $0 $0 0.00% TOTAL HUMAN RESOURCES $26,754 $28,491 $32,241 $33,021 2.42% 4209 CITY HALL RENT $6,904 $6,904 $6,904 $6,904 0.00% 4214 SOFTWARE MAINTENANCE $0 $0 $200 $200 0.00% 4220 PROFESSIONAL SERVICES CITY AUDIT $1,063 $1,048 $1,100 $1,100 0.00% WMO MEETINGS $0 $0 $6,000 $6,000 0.00% NPDES ENGINEERING FEES $6,134 $20,033 $35,000 $35,000 0.00% RAIN GARDEN DESIGN/CONSTRUCTION $593 $6,358 $35,000 $35,000 0.00% SURFACE WATER TREATMENT $8,692 $18,543 $7,500 $10,000 33.33% OTHER PROFESSIONAL SERVICES $19,677 $5,380 $2,500 $2,500 0.00% 4240 LEGAL PUBLICATIONS $201 $90 $250 $250 0.00% TOTAL CONTRACTUAL SERVICES $43,264 $58,356 $94,454 $96,954 2.65% 4300 OFFICE SUPPLIES $22 $0 $250 $250 0.00% 4318 POSTAGE $0 $26 $25 $25 0.00% 4330 EQUIPMENT REPAIR $254 $3,706 $3,000 $3,000 0.00% 4337 STORM SEWER MAINTENANCE $30,780 $37,042 $75,000 $50,000 -33.33% 4339 POND MAINTENANCE $110,720 $78,316 $0 $0 0.00% TOTAL COMMODITIES $141,776 $119,090 $78,275 $53,275 -31.94% 4404 MEMBERSHIP DUES $19,490 $20,635 $20,000 $24,000 20.00% 4460 CONSTRUCTION COSTS $0 $0 $0 $0 0.00% 4490 MISCELLANEOUS $1,048 $2,071 $500 $500 0.00% 4491 DEPRECIATION $52,726 $46,964 $53,000 $53,000 0.00% TOTAL OTHER CHARGES $73,264 $69,670 $73,500 $77,500 5.44% 4600 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $285,058 $275,607 $278,470 $260,750 -6.36% CAPITAL OUTLAY ITEMS REQUESTED APPROVED CAT OBJ DESCRIPTION Page 190 PAR 3 REVENUES REVENUE SOURCE 2018 ACTUAL 2019 ACTUAL 2019 BUDGET 2020 BUDGET 2021 BUDGET % CHANGE GREEN FEES $84,049 $93,078 $100,000 $100,000 $100,000 0.00% RECREATION PROGRAMS $29,970 $33,229 $38,000 $40,000 $35,000 -12.50% CONCESSIONS $18,047 $19,538 $18,000 $19,000 $19,000 0.00% SUNDRY REVENUE $454 $280 $0 $0 $0 0.00% INTEREST $425 $1,067 $250 $450 $450 0.00% TOTAL PAR THREE FUND REVENUE $132,945 $147,192 $156,250 $159,450 $154,450 -3.14% Page 191 2018 2109 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE PAR 3 4110 SALARIES-ADMIN $17,775 $18,480 $23,601 $24,676 4.55% 4115 SALARIES-OVERTIME(HOLIDAY)$1,557 $29 $300 $300 0.00% 4110 SALARIES-CLUBHOUSE $26,963 $27,146 $34,000 $34,000 0.00% 4110 SALARIES - MAINTENANCE $16,160 $17,187 $22,000 $22,000 0.00% 4131 INSURANCE $6,336 $6,653 $6,653 $6,653 0.00% 4133 WORKERS COMPENSATION $2,103 $2,794 $2,500 $2,750 10.00% 4134 PERA -$16,164 $2,206 $4,320 $4,401 1.88% 4135 FICA $4,688 $4,671 $6,113 $6,195 1.34% 4138 UNEMPLOYMENT $0 $403 $0 $0 0.00% 4139 OPEB $297 $0 $0 $0 0.00% TOTAL HUMAN RESOURCES $59,715 $79,568 $99,487 $100,975 1.50% 4200 RENTALS AND LEASES $2,819 $3,832 $4,750 $4,750 0.00% 4210 TELEPHONE $3,652 $3,981 $3,750 $3,200 -14.67% 4211 ELECTRIC SERVICE CLUBHOUSE $751 $826 $800 $850 6.25% MAINTENANCE $3,409 $1,800 $5,500 $4,500 -18.18% 4212 GAS SERVICE $786 $564 $800 $800 0.00% 4213 SOLAR LEASE $1,578 $1,751 $1,700 $1,915 12.65% 4220 PROFESSIONAL SERVICES CITY AUDIT $2,725 $2,776 $2,850 $2,850 0.00% CITY ATTORNEY $0 $0 $0 $0 0.00% SYSTEM INSPECTIONS $3,455 $531 $1,000 $1,000 0.00% DEPT OF AG LICENSE $0 $0 $100 $100 0.00% 4250 LIABILITY AND AUTO INSURANCE $3,834 $4,739 $4,200 $4,800 14.29% 4268 CONTRACT SERVICES IRRIGATION SYSTEM SERVICES $0 $0 $3,000 $4,500 50.00% CITY NEWSLETTER $284 $235 $400 $0 -100.00% 4280 RUBBISH REMOVAL $658 $736 $700 $800 14.29% TOTAL CONTRACTUAL SERVICES $23,951 $21,772 $29,550 $30,065 1.74% 4300 OFFICE SUPPLIES $467 $103 $600 $600 0.00% 4305 GOLF SUPPLIES $2,876 $1,597 $1,500 $1,500 0.00% 4310 CONCESSIONS FOOD $1,460 $1,697 $3,300 $3,300 0.00% POP $2,126 $1,659 $2,250 $2,250 0.00% 4320 GAS AND OIL $1,614 $1,554 $1,750 $1,750 0.00% 4330 REPAIRS AND MAINTENANCE GROUNDSKEEPING EQUIPMENT REPAIR $9,928 $4,342 $10,000 $10,000 0.00% 4334 COURSE MAINTENANCE #DIV/0! MISCELLANEOUS $0 $0 $3,500 $3,500 0.00% CHEMICALS AND FERTILIZER $7,155 $12,086 $11,000 $15,000 36.36% IRRIGATION SYSTEM REPAIR $1,151 $2,225 $2,750 $2,750 0.00% COURSE BEAUTIFICATION $1,555 $2,568 $1,500 $1,500 0.00% SOIL/SAND $510 $510 $600 $600 0.00% 4335 BUILDING MAINTENANCE $3,922 $7,752 $6,000 $6,000 0.00% TOTAL COMMODITIES $32,764 $36,093 $44,750 $48,750 8.94% CAT OBJ DESCRIPTION Page 192 4400 TRAINING $0 $266 $100 $300 200.00% 4404 MEMBERSHIP DUES $290 $90 $300 $450 50.00% 4410 CLOTHING AND EQUIPMENT $0 $901 $1,750 $1,750 0.00% 4415 MILEAGE AND AUTO ALLOWANCE $0 $0 $0 $0 0.00% 4425 WATER SERVICE $340 $316 $480 $480 0.00% 4427 SEWER SERVICE $1,366 $1,366 $1,400 $1,400 0.00% 4436 ONLINE REGISTRATION FEE $1,192 $1,169 $1,475 $1,475 0.00% 4437 CREDIT CARD FEES $2,639 $2,588 $2,800 $2,800 0.00% 4490 MISCELLANEOUS $2,712 $2,080 $2,000 $2,000 0.00% 4480 CONTINGENCY $0 $0 $0 $0 0.00% 4491 DEPRECIATION $12,358 $0 $8,000 $0 -100.00% 4500 TREE REMOVAL $0 $0 $1,500 $1,500 0.00% TOTAL OTHER CHARGES $20,897 $8,776 $19,805 $12,155 -38.63% 4620 CAPITAL OUTLAY $0 $71,723 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $71,723 $0 $0 0.00% TOTAL EXPENDITURES $137,327 $217,932 $193,592 $191,945 -0.85% CAPITAL OUTLAY ITEMS REQUESTED APPROVED Page 193 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE CITY HALL 4110 SALARIES-REGULAR $62,918 $65,999 $66,747 $68,765 3.02% 4115 SALARIES-OVERTIME $2,642 $935 $0 $0 0.00% 4130 SALARIES-TEMPORARY $0 $0 $0 $0 0.00% 4131 INSURANCE $10,622 $19,375 $20,160 $20,160 0.00% 4133 WORKERS COMPENSATION $5,549 $7,374 $6,590 $7,249 10.00% 4134 PERA $349 $2,296 $5,005 $5,157 3.04% 4135 FICA $5,506 $5,545 $5,106 $5,260 3.02% 4139 OPEB $826 $1,040 $0 $0 0.00% TOTAL HUMAN RESOURCES $88,412 $102,563 $103,608 $106,591 2.88% 4211 ELECTRIC SERVICE $30,332 $20,537 $30,000 $30,000 0.00% 4212 GAS SERVICE $6,823 $6,993 $7,500 $7,500 0.00% 4213 SOLAR LEASE $652 $3,923 $3,911 $4,161 6.39% 4220 PROFESSIONAL SERVICES MISC PROFESSIONAL SERVICES $709 $0 $1,000 $1,000 0.00% 4240 LEGAL PUBLICATION $0 $0 $0 $0 0.00% 4250 LIABILITY AND AUTO INSURANCE $5,991 $6,206 $6,000 $6,500 8.33% 4280 RUBBISH SERVICE $2,169 $2,852 $2,500 $3,000 20.00% TOTAL CONTRACTUAL SERVICES $46,676 $40,511 $50,911 $52,161 2.46% 4331 FURNITURE/EQUIPMENT $0 $0 $1,800 $1,800 0.00% 4335 BUILDING MAINTENANCE $53,733 $42,947 $46,500 $46,500 0.00% TOTAL COMMODITIES $53,733 $42,947 $48,300 $48,300 0.00% 4404 MEMBERSHIP DUES $0 $0 $50 $50 0.00% 4415 MILEAGE $0 $0 $100 $100 0.00% 4425 WATER SERVICE $3,271 $3,869 $4,000 $4,000 0.00% 4480 CONTINGENCY/RESERVE $0 $0 $10,000 $10,000 0.00% 4490 MISCELLANEOUS $0 $112 $250 $250 0.00% 4491 DEPRECIATION $79,714 $35,419 $80,000 $80,000 0.00% TOTAL OTHER CHARGES $82,985 $39,401 $94,400 $94,400 0.00% 4600 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $271,806 $225,421 $297,219 $301,452 1.42% CAPITAL OUTLAY ITEMS REQUESTED APPROVED Pumps Boilers LED Conversion Parking Lot CAT OBJ DESCRIPTION Page 194 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE EMERGENCY PREPAREDNESS 4110 SALARIES-REGULAR $0 $0 $0 $0 0.00% 4115 SALARIES-OVERTIME $0 $0 $0 $0 0.00% 4130 SALARIES-TEMPORARY $0 $0 $0 $0 0.00% 4131 INSURANCE $0 $0 $0 $0 0.00% 4133 WORKERS COMPENSATION $0 $0 $0 $0 0.00% 4134 PERA $0 $0 $0 $0 0.00% 4135 FICA $0 $0 $0 $0 0.00% 4138 UNEMPLOYMENT $0 $0 $0 $0 0.00% TOTAL HUMAN RESOURCES $0 $0 $0 $0 0.00% 4211 ELECTRIC SERVICE $0 $0 $0 $0 0.00% 4220 PROFESSIONAL SERVICES $0 $0 $7,000 $7,000 0.00% TOTAL CONTRACTUAL SERVICES $0 $0 $7,000 $7,000 0.00% 4305 OPERATING SUPPLIES $1,179 $322 $1,500 $1,500 0.00% 4330 REPAIRS AND MAINTENANCE SIREN MAINTENANCE AGREEMENT $0 $0 $5,000 $5,000 0.00% N95 MASK TESTING $0 $0 $700 $700 0.00% PHSYICALS $0 $0 $3,000 $3,000 0.00% DAKOTA COUNTY SPECIAL OPS $5,434 $5,577 $3,000 $3,000 0.00% EOC SUPPLIES $0 $0 $1,000 $1,000 0.00% TOTAL COMMODITIES $6,613 $5,899 $14,200 $14,200 0.00% 4400 AMEM ANNUAL CONFERENCE $0 $0 $1,200 $1,200 0.00% 4400 TRAINING $0 $0 $5,000 $5,000 0.00% 4400 CONTINGENCY $0 $0 $0 $0 0.00% 4400 DAKOTA COUNTY EMER. PREP. CMTE.$3,353 $3,378 $4,000 $4,000 0.00% 4400 DRILL CONSULTANT/EXPENSES $0 $0 $0 $0 0.00% 4490 MISCELLANEOUS $577 $0 $0 $0 0.00% TOTAL OTHER CHARGES $3,930 $3,378 $10,200 $10,200 0.00% 4620 CAPITAL OUTLAY $0 $0 $12,200 $12,200 0.00% TOTAL CAPITAL OUTLAY $0 $0 $12,200 $12,200 0.00% TOTAL EXPENDITURES $10,543 $9,277 $43,600 $43,600 0.00% CAPITAL OUTLAY ITEMS REQUESTED APPROVED SIREN ESCROW $12,200 CAT OBJ DESCRIPTION Page 195 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE FIRE RELIEF 4110 SALARIES-REGULAR $0 $0 $0 $0 0.00% 4115 SALARIES-OVERTIME $0 $0 $0 $0 0.00% 4130 SALARIES-TEMPORARY $0 $0 $0 $0 0.00% 4131 INSURANCE $0 $0 $0 $0 0.00% 4133 WORKERS COMPENSATION $0 $0 $0 $0 0.00% 4134 PERA $0 $0 $0 $0 0.00% 4135 FICA $0 $0 $0 $0 0.00% 4138 UNEMPLOYMENT $0 $0 $0 $0 0.00% TOTAL HUMAN RESOURCES $0 $0 $0 $0 0.00% 4200 RENTALS AND LEASES $0 $0 $0 $0 0.00% TOTAL CONTRACTUAL SERVICES $0 $0 $0 $0 0.00% 4300 OFFICE SUPPLIES $0 $0 $0 $0 0.00% TOTAL COMMODITIES $0 $0 $0 $0 0.00% 4490 FIRE AID $100,975 $104,236 $100,000 $105,000 5.00% 4490 CITY CONTRIBUTION $128,680 $152,640 $180,000 $180,000 0.00% 4490 SUPPLEMENTAL BENEFIT ADMIN $0 $0 $1,000 $1,000 0.00% TOTAL OTHER CHARGES $229,655 $256,876 $281,000 $286,000 1.78% 4600 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $229,655 $256,876 $281,000 $286,000 1.78% CAPITAL OUTLAY ITEMS REQUESTED APPROVED NONE CAT OBJ DESCRIPTION Page 196 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE SPECIAL PARK 4110 SALARIES-REGULAR $0 $0 $0 $0 0.00% 4115 SALARIES-OVERTIME $0 $0 $0 $0 0.00% 4130 SALARIES-TEMPORARY $0 $0 $0 $0 0.00% 4131 INSURANCE $0 $0 $0 $0 0.00% 4133 WORKERS COMPENSATION $0 $0 $0 $0 0.00% 4134 PERA $0 $0 $0 $0 0.00% 4135 FICA $0 $0 $0 $0 0.00% 4138 UNEMPLOYMENT $0 $0 $0 $0 0.00% TOTAL HUMAN RESOURCES $0 $0 $0 $0 0.00% 4220 CITY AUDIT $1,226 $1,205 $1,250 $1,250 0.00% 4220 CITY ENGINEER $0 $0 $0 $0 0.00% TOTAL CONTRACTUAL SERVICES $1,226 $1,205 $1,250 $1,250 0.00% 4300 OFFICE SUPPLIES $0 $0 $0 $0 0.00% TOTAL COMMODITIES $0 $0 $0 $0 0.00% 4460 CONSTRUCTION COSTS $10,549 $32,249 $5,000 $5,000 0.00% 4490 MISCELLANEOUS $0 $26,364 $500 $500 0.00% TOTAL OTHER CHARGES $10,549 $58,613 $5,500 $5,500 0.00% 4620 CAPITAL OUTLAY $140,981 $328,696 $610,000 $0 -100.00% TOTAL CAPITAL OUTLAY $140,981 $328,696 $610,000 $0 -100.00% TOTAL EXPENDITURES $152,756 $388,515 $616,750 $6,750 -98.91% CAPITAL OUTLAY ITEMS REQUESTED APPROVED Wentworth Tennis Courts $60,000 2021 Wentworth Parking Lot/Trails $90,000 2021 Marie Park Playground $160,000 2021 Dugouts $100,000 2021 CAT OBJ DESCRIPTION Page 197 CITY OF MENDOTA HEIGHTS 2020 BUDGET DEBT SUMMARY IMPROVEMENT BONDS 2019 LEVY 2020 LEVY 2021 LEVY END DATE 2009 $25,491 $0 2/1/2020 2010 $43,043 $0 2/1/2030 2011 $218,832 $0 2/1/2031 2012 $88,034 $88,641 $188,998 2/1/2032 2013 $125,393 $127,913 $123,661 2/1/2034 2014 Refunding $64,518 $64,186 $69,104 2/1/2027 2014 $69,703 $69,831 $69,566 2/1/2035 2015 Refunding $157,329 $148,509 $139,794 2/1/2028 2015 $48,558 $48,697 $48,836 2/1/2036 2016 $75,624 $80,819 $80,543 2/1/2037 2017 $88,318 $86,911 $91,632 2/1/2030 2018 $0 $101,617 $109,447 2/1/2030 FIRE STATION $0 $623,543 $624,173 2/1/2035 2019 $0 $275,802 $351,455 TOTAL $1,004,843 $1,716,469 $1,897,210 EQUIPMENT CERTIFICATES 2019 LEVY 2020 LEVY 2018 LEVY END DATE FIRE TRUCK $0 $0 $0 2/1/2020 DUMP TRUCK $28,770 $28,442 $28,114 2/1/2025 PAR THREE BONDS 2019 LEVY 2020 LEVY 2018 LEVY END DATE PAR THREE $243,600 $244,440 $245,175 2/1/2023 GRAND TOTAL $1,277,213 $1,989,351 $2,170,499 Page 198 2018 2019 2020 2021 % ACTUAL ACTUAL BUDGET PRELIMINARY CHANGE STREET LIGHT MAINTENANCE 4110 SALARIES-REGULAR $0 $0 $0 $0 0.00% 4115 SALARIES-OVERTIME $0 $0 $0 $0 0.00% 4130 SALARIES-TEMPORARY $0 $0 $0 $0 0.00% 4131 INSURANCE $0 $0 $0 $0 0.00% 4133 WORKERS COMPENSATION $0 $0 $0 $0 0.00% 4134 PERA $0 $0 $0 $0 0.00% 4135 FICA $0 $0 $0 $0 0.00% 4138 UNEMPLOYMENT $0 $0 $0 $0 0.00% TOTAL HUMAN RESOURCES $0 $0 $0 $0 0.00% 4211 ELECTRICAL SERVICES $12,456 $10,049 $17,500 $17,500 0.00% 4220 PROFESSIONAL SERVICES $0 $0 $500 $500 0.00% TOTAL CONTRACTUAL SERVICES $12,456 $10,049 $18,000 $18,000 0.00% 4330 REPAIRS AND MAINTENANCE $7,471 $32,637 $35,000 $35,000 0.00% TOTAL COMMODITIES $7,471 $32,637 $35,000 $35,000 0.00% 4490 MISCELLANEOUS $0 $0 $0 $0 0.00% TOTAL OTHER CHARGES $0 $0 $0 $0 0.00% 4620 CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 0.00% TOTAL EXPENDITURES $19,927 $42,686 $53,000 $53,000 0.00% CAPITAL OUTLAY ITEMS REQUESTED APPROVED NONE CAT OBJ DESCRIPTION Page 199