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2014.07.15 Council Meeting Packet4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Te]: ('763) 53l -1000 • Fax: ('763) 53l -1188 • www.crystalmn.gov �� ►�i�� Posted: July l l, 20l 4 City Council Meeting Packet for Tuesday, July 15, 2014 MEETING SCI3EDULE t ,,,,,,,,, ,,,, ,,,,,,,,,,,,,,, , .� � F ,F ,F ,F ,F ,F ,F ,F F ,F ,F F F F ,F ,F ,F ,F ,F ,F ,F F } ,, ,,,,,, � ,, ,,, ,,,,,. t t r t t t ,, si , } � � � . � . � � � . �l. }s �1., �1., � �l }s £.�� .. �l , . �l �l. �l. � � � . �l. � . � . } , 3, #r.i i i i i i i t, � a i i i. i i i i i i i t �. , �. i,. � �. , , .�, �„�l.}tt ..t, �„�„�„� �,� v f <<,,.., ,s 2 f,i...,�, .{ ; ,a 1 �„�. a�„�.,�1.�,,, ,�l.�,l � ,�„�., ..�. � ..3 t < < < s�s4 s4.s4 s4 s4 s4.s. ,s s.t- ? .3��.0 < , � � .s,,s4 s4 s4 s4.s4 s4 s .r. } �. �t.. � t r t . <f} < < t 17�3 tss t f tst � ! �,! rt rt. rt rt rt. rt.t,.< „! rt rt rt. rt. rt. t}.. �€� v �. �, f t.a = , s 7£ r .t #� �.. t£ ji k t. . l S t; � � t . 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Franchise agreement with Comcast — Conference Room A NWSCCC • Commission liaisons reports/updates* 6:50 p.m. EDA Special Meeting Council Chambers 7:00 p.m. Regular City Council Meeting Council Chambers Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: ('763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov CRYSTA� CITY COUNCI� WORK SESSION AGENDA Tuesday, July 15, 2014 6:15 p.m. Conference Room A Posted: July 11, 2014 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held at p.m, on Tuesday, July 15, 2014 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota. I. Attendance Council members Staff Budziszewski Norris Deshler Therres Hoffmann Peters Libby Peak Selton Adams Revering Norton I1. Aqenda The purpose of the work session is to discuss the following agenda items: • Open to Business program survey results • Franchise agreement with Comcast - NWSCCC • Commission liaisons reports/updates* I11. Adiournment The work session adjourned at p.m. Auxiliary aids are available upon request to individuals wifh disabilities by calling the City C/erk at (763) 531-1145 at /east 96 hours in advance. TTY users may call Minnesota Relay af 711 or 1-800-627-3529. CITY of CRYSTAL DATE: July 8, 2014 TO: FROM: SUBIECT: Memorandum Mayor and City Council Patrick Peters, Community Development Directo �� Survey Responses regarding "Open to Business" "Open to Business" (OTB) is a program of the Metropolitan Consortium of Community Developers (MCCD) that offers a variety of services for new or expanding local businesses. Please see Attachment A for an overview of the agency's offerings, which include small business consulting, direct lending and loan packaging. Several Hennepin County communities have enrolled in the program as a means of offering support to local businesses and entrepreneurs. Crystal currently has no such programs to offer local business. The annual OTB fee for services is $7,500, half of which is paid for by the Hennepin County HRA. The city's half could be paid out of the EDA's redevelopment account. At its April 10 work session, the Council discussed whether the OTB program offers services that might benefit local businesses and whether the city's involvement in providing economic development services was duplicative of other agencies' efforts. To help determine whether to move forward with even a 1-year trial partnership with the MCCD, Council asked staff to prepare a survey to be completed by representatives of the business community in attendance at the next Crystal Business Association meeting. The OTB survey was presented at the May CBA meeting, and the results are attached to this memorandum. It is important to keep in mind that the CBA meetings are attended by businesses outside of Crystal, so the results are representative of businesses from a broader geographic area than just Crystal. The results suggest that the respondents feel there is no clear need for the services overall, particularly the loan programs; and only about half of the 17 respondents feel as though business support activities should even be within the city's economic development efforts. Staff seeks Council direction at the July 15 work session on whether to move forward with a partnership with the MCCD to implement the OTB program in Crystal. OPEN TO BUSINESS SURVEY - 17 RESPONDENTS INTERESTED? I KNOW OTHERS SERVICES YES NO DK WHO MIGHT BE ---------------------------------------------------------------------------------------------------- Financial Management (cash flow projections, etc) � $ 1 ------------------ -- - ------------------------------- Bookkeeping Set _up and Training 4 11 1 - - - - ------------------------------------------------------------ Loan Packaging Advising (start_up or expansion) 6 8 2 0 ---------------------- - - - - ------------------------------------------ Business Plan Assistance 7 8 1 1 ------------------------------------------------------------------------------------------------ Real Estate Anal sis hel decidin whether to rent or bu )_______________________________________________ 5 g 2 1 ---------------------Y---�----p----------g-----------------------------v-- ------ Marketin Assistance who are m customers, how to reach them) 7 7 1 1 ------------g -------------- �--------------y-------------------------------------------------------------------------------------- Strategic Planning (how to evaluate and manage growth) � $ 1 ----------------------------- ---------------------------------------------------------- Business Re ulations advice on licenses, permits 6 7 1 2 --------------- g-----------� ----------------------------------� ------------------------------------------------------------------ Professional Referrals how to find attorne accountant) 5 9 1 1 -----------------------------�-------------------------y'------------------------------------------------------------------------- Financial Advice (how much do I need to borrow, what loan would work best, available funding sources) 5 7 1 2 SERVICES 59 81 9 11 LOAN PROGRAMS ---------------------------------------------------------------------------------------------------------------------------------- Micro Loans (start-up or early stage direct loans, 3-5 yr terms, up to $25K for retail/service, $50K manufacturing) � � 2 ---------------------------------------------------------------------------------------------------------------------------------- Participation Financing (OTB loans in partnership with private lenders for physical improvements, hard asset costs, $5K-$100K) 3 11 1 1 ---------------------------------------------------------------------------------------------------------------------------------- Real Estate Gap Financing (OTB loans in partnership with private lenders for real estate acquisition, 10-year term) 3 10 1 1 -------------------------------------------------------------------------------------------------------------------- Transactional Financing (short term loans to assist businesses with short term cash flow needs, 6 months, $25K or less) 4 9 2 1 LOAN PROGRAMS 17 37 4 5 CITY OF CRYSTAL ECONOMIC DEVELOPMENT EFFORTS -------------------------------------------------------------------------------------------------------------------- Should the City be involved in economic development activities if other agencies, banks, private sector and non _profit entities are already doing this? 9 2 3 -- ------------------------ If the OTB program doesn't represent a duplication cf services, is there value to the business community for the $3,750 annually it will cost for the City to be able to offer these services? 9 3 3 CITY OF CRYSTAL ECONOMIC DEVELOPMENT EFFORTS 18 5 6 0 �r� of emorandu `C[iYSTAL DATE: July 8, 2014 TO: Mayor and City Council FROM: Anne Norris, City Manager � SUBJECT: Franchise Renewal — Comcast and NW Suburbs Cable Commission As you know, Crystal is a part of the NW Suburbs Cabie Communications Commission (NWSCCC), a joint powers organization which manages cabie service in the northwesfi suburban communities. NWSCCC has a franchise agreement with Comcast for cable services which is nearing expiration. A committee of the NWSCCC has worked on the franchise renewal process and the franchise agreement aver the last 3 years. That committee has recommended approval of the the Renewal Franchise Agreement . The terms of the Renewal Franchise Agreement are: - 10 year term; - Increased franchise fee and an upfront capital grant far transitioning to all digital programming; - 2 high definition channels (ND) althaugh 40% of current subscribers do not subscribe to HD service; - Electronic program guide access for local programming channels; - Cantinued free basic cable service to public buildings; and - Continue the locai programming and public access. The process for approval af the new 10 year franchise agreement is all NWSCCC member cities have 30 days ta review and comment on the proposed Renewal Franchise Agreement (attached). Any comments need to be provided to th� NWSCCC by August 6. After that, the NWSCCG will hold a public hearing at its September 18 meeting to consider approval of the Renewal Franchise Agreement. -, � �. :�� Given the August 6 deadline, the Council will review the proposed Renewal Franchise Agreement at its July 15 work session prior to taking action at the regular meeting ta receive and comment on the Renewal Franchise Agreement with Comcast. To: NWSCCC and Member Cities From: Mike Johnson — Executive Director Date: July 9, 2014 Re: Franchise Renewal The Cable Franchise Renewal documents were sent to all nine of the member cities last week. The process allows for a 30 day review period for cities to look over the documents and comment or ask questions if they wish. Due to the amount of information and all the legal language associated with the proposed agreement, this memorandum may be helpful to city officials and or city staff to obtain a better understanding of the Northwest Suburbs Cable Communications Commission (NWSCCC) and Northwest Community Television (NWCT), the cable franchise process and some of the highlights of the proposal and a look at cable competition. Brief History of NWSCCC and NWCT A joint cable television service area was first discussed in 1971. The founding member cities included: Crystal, Golden Valley, New Hope and Robbinsdale. At the time, the group was officially known as the "CATV Joint Committee". The 2 people credited with forming this group initially was Jack Irving from Crystal, and Ray Stockman from Golden Valley. Both Jack and Ray have since passed away after dedicating nearly 30 years each to the organization. Cities throughout the country began looking into the feasibility of having a cable television system in their city. The first metro cities to offer cable service in the 1970's were Bloomington, Fridley and St. Louis Park. In the fall of 1972, each of the 4 cities adopted a resolution to form a Joint Powers Agreement to form the "CATV Commission". In 1979, five additional cities began discussions of becoming members of the Joint Powers Agency. Those cities include: Brooklyn Center, Brooklyn Park, Maple Grove, Osseo and Plymouth. Subsequently, the group was named the Northwest Suburbs Cable Communications Commission once all nine cities were members. 1981 was the year cable commission activity surged and has been going strong ever since. The original cable system construction began in 1982. Several companies at the time were interested in offering a proposal in the northwest suburbs to build a system. It was not economically viable at the time for any company to compete head to head in the same service area. Storer Cable was granted a 15 year franchise to the Northwest Suburbs. After the expiration of the 15 year cable franchise, another 15 year franchise was granted in the 1990's to the cable company operating at the time. The Northwest Suburbs Community Access Corporation doing business as Northwest Community Television (NWCT) is a separate 501-C3 non-profit organization. Discussions about forming a separate entity to handle all of the community television operations began in 1981 and the Articles of Incorporation were formulated in 1982. There are 15 members on the NWCT Board. 1 member appointed by each of the nine member cities. 4 members appointed At Large by the Cable Commission. 2 members elected by the Community Producer Volunteers. There was a transition in May of 1985 in which the cable company transferred all local programming responsibilities and staff to NWCT. The plan was for NWCT to operate Community Access and produce professionally produced Local Origination programming. NWCT was prepared and in position to take control of all community programming aspects. The formation of NWCT in 1982 and the transition to overall responsibility for all local programming in 1985 was paramount to the highly successful operation we have had since then. NWCT as well as its flagship Channel 12 is recognized both locally and nationally as one of the most successful community television operations in the country. NWSCCC & NWCT moved into its building in 1986. Both organizations operated out of the cable company building prior to 1986. We are a community resource that is valued by the cities and the residents. Our core mission is to be a service to our cities. The Northwest Suburbs Cable Communications Commission and Northwest Community Television meet quarterly. The unwavering support of Cable Commission and NWCT Board Members and our member cities has always been essential to the success of our operation. Many Mayor's, Council Members, City Manager's, City Staff and Community Representatives have had a hand in our success throughout the years. We cannot thank them enough for their dedication to this organization. We are honored to have Bill Blonigan and Jim Willis continue to serve on the Cable Commission from the time operations began to take off in 1981 and Dr. Duane Orn, representing Brooklyn Center since 1982 on the NWCT Board. Current Cable Commission Members in citv alphabetical order: Brooklyn Center: Rex Newman & Tim Willson Brooklyn Park: James Jackson & Jamie Verbrugge CrystaL• Julie Deshler & Anne Norris (Vice Chair) Golden Valley: Joanie Clausen & Joan Russell Maple Grove: Phil Leith & Al Madsen (Chair) New Hope: Andy Hoffe & Kirk McDonald Osseo: Doug Reeder & Mark Schulz Plymouth: Helen LaFave & Jim Willis Robbinsdale: Bill Blonigan & George Selman Current NWCT Board Members: Brooklyn Center: Dr. Duane Orn Brooklyn Park: Jamie Verbrugge Crystal: Anne Norris (Vice Chair) Golden Valley: Thomas Burt Maple Grove: Al Madsen New Hope: Kirk McDonald Osseo: Doug Reeder Plymouth: Helen LaFave Robbinsdale: Marcia Glick (Chair) At Large Members: James Jackson, Zipporah Mesesi, Rex Newman and Joan Russell. Elected Members: Donald Jackson and Jesse Stinski Franchise Renewal The Federal Cable Act, Section 546, includes the procedural requirements for local governments to comply with for cable franchise renewals. This law gives cable operators having an existing cable services franchise a presumption of renewal unless, based upon a process of the local franchising authority (NWSCCC), it is determined that certain findings as spelled out in the Federal Cable Act cannot be met and approved. The NWSCCC Franchise Renewal process started approximately three and a half years ago upon receipt of a letter from Comcast dated January 3, 2011 requesting to renew a franchise agreement for 10 years with NWSCCC. The franchise agreement is non-exclusive. This means other companies can come in and compete. The NWSCCC met on February 27, 2011 to discuss the renewal and the process moving forward. There were many steps along the way throughout the Franchise Renewal. We have had a total of 17 negotiating meetings. Some of the meetings were with Comcast and some without. In addition, we discussed Franchise Renewal at 14 of our Cable Commission meetings. At this point, there have been Franchise Renewal discussions at a total of 31 meetings. There were 2 phases within the renewal process, they included the Needs Assessment Phase and the Negotiating Phase. A lot of documentation was provided to Comcast related to our Needs Assessment. The documentation included surveys of stakeholders and scientific viewership surveys. Commission members toured Comcast technical head end buildings in Roseville and toured the local Comcast Twin Cities office located in St. Paul. Technical Consultants were hired to review our needs as related to technology for High Definition (HD) transmission, Video on Demand and Mobile Video Applications. The architectural firm that designed our building back in 1985 was hired to review the building infrastructure needs over the next 10 years such as roof replacements, HVAC controls, lighting, etc. The firm also provided cost for an expansion to the building. The building expansion was taken off the table due to the overall expense of the project. It was determined that we can function within our current footprint and focus our attention on building infrastructure improvements and technology for television production. The current 15 year agreement expired on December 1, 2013. The NWSCCC approved a Cable Franchise Extension via resolution to be effective December 1, 2013 through March 31, 2014. Another Extension was granted in February also via resolution to be effective from March 31, 2014 to July 30, 2014. We anticipate one final extension simply to get us through the final steps in the process after the Public Hearing on September 1 gtn Several months ago, Comcast announced that it would be merging with Time Warner. If the merger is approved by federal regulators later on this year, Comcast will need to divest of systems in Minnesota as well as other areas in the country because federal regulations only allow a cable company to have about 30% of the cable subscribers in the country. It is most important to make clear that if there is an ownership change between Comcast and Midwest Cable, Midwest Cable will be required to abide by the franchise agreement agreed to between Comcast and the Northwest Suburbs Cable Communications Commission. Community Pro�ramming Proposal Highlights In the Proposal In summary, the Proposed Franchise Agreement provides for stable funding for capital expenses related to our operation and the technical operations at all of the city halls we serve. We will operate 5 Serial Digital (SD) Channels and 2 High Deiinition (HD) Channels. Currently, approximately 40% of the subscribers do not subscribe to HD service. There is language in the Proposed Franchise Agreement that all of the SD channels could transition to HD channels if the cable company eliminates SD channels on the basic service tier. In addition, there is language that would give NWCT an option to swap 3 SD channels for 1 HD channel by request after the first 3 years of the signed agreement. Electronic Program Guide (EPG) access for all local programming channels. This is extremely important in terms of being able to find specific programs on the schedule, setting recordings if you have a DVR, etc. This will also eliminate the need for public access to tie up an entire channel to promote its schedule. We certainly can find new and innovative ways to help public access promote its classes to the public. Like inserting promotional spots between programming on the community access channels, airing spots on channel 12 and potentially ad avail spots on the cable system. Video on Demand is included in the agreement. This will give us an opportunity to test the technology for Public, Educational and Government programming as well as Channel 12. The ability for channel 12 to connect to the cable network to share and cablecast sporting events and other relevant programming that may have regional significance throughout the twin cities. Continued free Basic Cable Service to public buildings. $30,000 per year in Ad-Avail spots (air time) on the cable system. $200,000 one time up front Capital Grant. The continued ability to request an additional channel from the cable company if certain programming thresholds are met. From a local programming perspective, the franchise agreement will give us the ability to continue our mission in serving cities in the northwest suburbs with some of the best local programming in the country for many years to come. Our goal is to continue with that tradition that started over 30 years ago thanks to the strong and unwavering support of our member communities. Competition to Cable We are often asked by cable subscribers if there will be additional competition with the cable company in the future. When we look back to the very beginning, cable became the competition for over the air broadcast. Over the air broadcast of course is free, but cable offered many more options for the consumer in terms of more variety of programming and channels. The cable industry eventually began to offer phone and internet service beyond traditional cable television video service. Cable companies began to see real competition when the satellite industry took off. Twin Cities based Hubbard Broadcasting founded United States Satellite Broadcasting (USSB) in the 1980's. They partnered with Hughes satellite and was later purchased by DirectTV in 1998. The satellite television industry really started to have an effect on cable subscribership in the 1990's and still does to this very day. One thing that was not around at a consumer level when the cable system was built in the early 80's was the internet. In fact, NWSCCC and NWCT operated with typewriters only until 1984 when we purchased our iirst IBM personal computer. Although the internet had been around for years for military purposes and at universities, it really did not take hold among the masses until the 1990's. Search engines Netscape and Yahoo were founded in 1994 and Google in 1998. The internet today is big competition to cable. Many people stream Netflix and other content through the internet pipeline. That pipeline of course is offered by cable companies as well as telephone companies. Cable has the edge at this point in time of overall higher speeds. Cable customers can "cut the cable cord" and have internet provided through a local competitor though if they wish. Wireless video via smart phones and tablets are also changing the wired world as we know it. The next real wave though of wired competition could very well come from Century Link, AT&T or even Google. Google is beginning to wire cities across America with a 1 gigabit fiber link to the home. Most of the current cable connections to the home are done via coax cable that feeds to a node that may be connected via fiber. Google is currently experimenting with cable broadband operations in Kansas City, Missouri, Austin, Texas and other cities. They are competing head to head with the cable company serving the same area. It's simply a matter of time before the northwest suburbs and cities throughout Minnesota and across the country see additional competition. AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • SPECIAL MEETING • TUESDAY, JULY 15, 2014 6:50 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order 2. Roll call 3. Consider approval of minutes from the April 17, 2014 special meeting * 4. Consider a request from MT Builders to apply previous option payments to the purchase price for 4349 Xenia Avenue North * 5. Other business 6. Adjournment * Materials attached 07/09/14 G:\EDAWgendas�2014\07.15.docx Minutes of the Crystal Economic Development Authority Special Meeting Apri117, 2014 President Deshler called the special meeting of the Crystal Economic Development Authority to order at 6:45 p.m. Upon call of the roll, the following members were present: Jim Adams, John Budziszewski, Julie Deshler, Mark Hoffmann, Laura Libby, Casey Peak and Joe Selton. The following staff inembers were present: Anne Norris, Executive Director; Patrick Peters, Deputy Executive Director; John Sutter, City Planner/Assistant Community Development Director; and Mike Norton, City Attorney. Motion by Commissioner Adams (Hoffmann) to approve the minutes from the April 1, 2014 regular meeting. Motion carried. The EDA held a public hearing to consider a resolution authorizing the sale of a lot at 5332 50�' Avenue North to Novak-Fleck for construction of a new house. President Deshler opened the public hearing. No one appeared and the hearing was closed. Motion by Commissioner Budziszewski (Peak) to adopt Resolution #2014-OS authorizing the sale of a lot at 5332 50�` Avenue North to Novak-Fleck for construction of a new house. Motion carried. The EDA considered a resolution awarding the sale of, and providing the form, terms, covenants and directions for the issuance of the $1,011,175 taxable tax increment revenue note, Series 2014 of the Economic Development Authority of the City of Crystal for The Cavanagh Senior Apartments. Motion by Commissioner Adams (Budziszewski) to approve Resolution #2014-06 awarding the sale of, and providing the form, terms, covenants and directions for the issuance of the $1,011,175 taxable tax increment revenue note, Series 2014 of the Economic Development Authority of the City of Crystal for The Cavanagh Senior Apartments. Motion carried. Motion by Commissioner Peak (Budziszewski) to adjourn the special meeting. Motion carried. The meeting adjourned at 6:52 p.m. Julie Deshler, President ATTEST: Mark Hoffmann, Vice President CYfY of CRYSTAL -- EDA STAFF REPORT 4349 Xenia Expired Option Fee FROM: John Sutter, City Planner/Assistant Community Development Director c��' DEPARTMENT HEAD REVIEW: Patrick Peters, Community Development Director �� DATE: TO: July 10, 2014 Anne Norris, Executive Director (for July 15, 2014 EDA meeting) SUBJECT: Consider a request from MT Builders to apply previous option payments to the purchase price for 4349 Xenia Avenue North In May 2013 MT Builders optioned the lots at 4343 and 4349 Xenia Avenue North: ■ For 4343, MT purchased the lot in July 2013, then built and sold a new house in October 2013. The $500 option fee was applied to the purchase price per the option agreement. ■ For 4349, MT paid an additional $500 in November 2013 to extend the option another 6 months. The option expired on May 15, 2014 and the $1,000 option fee is retained by the EDA per the option agreement. MT was unable to proceed with purchasing 4349 within the option period because its capital was tied up with a new house it built in Brooklyn Park. MT now wishes to proceed with the 4349 Xenia lot purchase. The public hearing is scheduled for the August 19 EDA meeting. The proposed house would be very similar to the recently- completed and sold house at 4343 (photo and preliminary site plan attached). MT is requesting that the EDA apply the $1,000 option fee to the $50,000 price for 4349 Xenia. Please note that MT is also proceeding with the $45,000 purchase of its optioned lot at 4326 Zane. That public hearing is also scheduled for August 19. Because MT has exercised its option before expiry, the $1,000 option fee will be applied to that lot's purchase price. REQUESTED EDA ACTION (Builder's request): EDA approval of a motion applying $1,000 in fees paid for a now-expired option to MT Builders' purchase of the lot at 4349 Xenia Avenue North for $50,000. � �`��._, - - coLtcxna^oo� 3G'""" f j RAD R � THE CITY MANAGER'S COMMENTS ARE BO�DED. City ��r�� M��t�� r i i r July 15, 2014 7:00 P.M. Council Chambers I. CALL TO ORDER ROLL CALL AND PLEDGE OF ALLEGIANCE II. SWEARING-IN CEREMONY* The Mayor will swear-in Police Sergeant Tracie Lee-Faust. Representatives of the Crystal Lions will be present to announce and invite the community to their corn feed on Saturday, August 9 at Becker Park from 11:00 a.m. — 4:00 p.m. • � _ u__ ► ►� � The Council will consider the minutes from the following meetings in a single motion: a. The Regular City Council Meeting from June 17, 2014; b. Two Council Work Sessions from June 17, 2014; and c. The Council Work Session from July 1, 2014. •� _� _ _��_ The Council will consider the following items, which are routine and non-controversial in nature, in a single motion: 1. Approval of the list of license applications submitted by the City Clerk to the City Council, a list that is on file in the office of the City Clerk; 2. Approval of disbursements over $25,000 submitted by the Finance Director to the City Council, a list that is on file in the office of the Finance Director; 3. Approval of a resolution accepting the following donations: ■$100 from American Legion Aviation Post 511 for the Crystal Airport Open House ■$300 from Chester Bird American �egion #523 for the Crystal Airport Open House ■$5,000 from the Crystal Lions for Crystal Frolics ■ 2-$250 donations from Walmart for the Crystal Police Reserves ■$17,000 from West Metro Fire Relief Association for Crystal Frolics 4. Approval of a permit application for fireworks display on Friday, July 25 and Saturday, July 26, 2014; Crystal City Council Meeting Agenda July 15, 2014 5. Approval of a temporary on-sale liquor license for a church festival on August 1- 3, 2014, submitted by the Church of St. Raphael; 6. Approval of a solicitation license for the following six solicitors from True Protection to go door-to-door in Crystal from June 23, 2014 through July 22, 2014, to sell and schedule appointments for the installation of home alarm systems: Jeff Caquelin, Cameron Duke, Ryan Dziuk, Gabe Koogler, Evan Ruen, and Matthew True. (These were pre-approved by City Manager Anne Norris on 6/23/2014.); 7. Approval of a solicitation license for the following nine solicitors from Vision Security to go door-to-door in Crystal from June 23, 2014 through July 22, 2014, to sell and schedule appointments for the installation of home security systems: Matthew Bacon, Lanna Dang, Derek Eisenbach, Tayler Gallagher, Manny Hentges, Christopher Love, Michael Menzel, Andrew Romeo, and Alan Ruiz. (These were pre-approved by City Manager Anne Norris on 6/23/2014.); 8. Approval of a special permit to serve wine and beer at Bassett Creek Park on Sunday, August 10, 2014, from 12:00 — 4:00 p.m., for up to 50 volunteers and dog fosters to attend a BBQ, submitted by Susan Wipson, event coordinator for No Dogs �eft Behind; 9. Approval of a special permit to serve wine and beer at Yunkers Park on Wednesday, July 16, 2014, from 6:00 — 8:30 p.m., for up to 100 guests to attend a neighborhood get together, submitted by Caleb Dahl; 10. Receipt of and comment on proposed franchise agreement with Comcast — NWSCCC; and 11.Approval of a special meeting on August 15, 2014 at 5:00 p.m. to canvass the Primary Election returns*. VI. REGULAR AGENDA 1. The Council will consider appointing Helene Vigdahl to the Environmental Quality Commission for an unexpired term expiring on December 31, 2014. The Interview Committee recommends approval of the appointment of Helene Vigdahl to the Environmental Quality Commission. 2. The Council will consider bids and award contract for 2014 Winnetka Hills Phase 1 Mill & Overlay Project No 2014-21. At its June 17 meeting, the Council held a public hearing for Phase 1(Winnetka Hills neighborhood) of the mill and overlay projects and authorized advertising for bids for this project. Five bids were received on July 10. If the project is to proceed this year, the Council needs to award the contract to the low bidder, Park Construction. The Council needs to determine which of the 3 options will be used to finance the project: 100% assessed as outlined in Resolution #2010-48, Exhibit C; 100% tax levy; or 60% assessed and 40°/a paid for by the city. Page 2 of 4 Crystal City Council Meeting Agenda July 15, 2014 Resolutions for the three options will be available at the meeting. If the Council cannot agree on how to finance the project, then the project should not proceed this year. 3. The Council will consider the 2015 West Metro Fire-Rescue District budget. The 2015 West Metro Fire District was approved by the West Metro Board at its April 16, 2014, meeting. The total 2015 budget is $1,974,000, an increase of $10,805 from the 2014 budget. Crystal's share of the District's 2015 budget will be $972,159.47, a.04°/a increase over our share this year. The Joint Powers Agreement for West Metro requires both the Crystal and New Hope City Councils to approve the budget by July 31. Recommend approval of the 2015 West Metro Fire District budget. VI1. OPEN FORUM (Open forum is a time for individuals in the audience to address the Council on subjects not on the regular Council agenda. lndividuals are asked to step up to the podium and speak clearly into the microphone. You are allowed 3 minutes to make your comments and no items may be addressed more than ten minutes. The Council will not take action on items discussed during open forum or discuss matters under pending or threatened litigation; however, the Council may add the item to a future meeting agenda and ask city staff for follow-up. No comments will be taken during tonight`s Open Forum regarding the Ramirez matter. The Council is well aware of the issues and concerns of inembers of the community group, Communities United Against Police Brutality and Crystal residents. The group`s members have attended many city council meetings and have been in contact by telephone, email and written letter. The city has responded many times to requests for information. The city will provide any public information available in the future. Citizens are invited to communicate with city staff or the Mayor and Council by email or letter about this or any other topic.) VIII. INFORMATION AND DISCUSSION a) The Crystal Business Association meets on July 16 at 8:30 a.m. at Crystal City Hall. b) The Council will meet for budget work sessions on the following Thursdays in the Community Room at City Hall: ■ Thursday, August 7 at 6:30 p.m. ■ Thursday, August 14 at 6:30 p.m. ■ Thursday, August 21 at 6:30 p.m. c) Upcoming events in the City include: • Crystal Frolics - July 24-27; • MN Night to Unite is Tuesday, August 5. Registration forms are due by July 25. • Log onto the city's website to learn more at �rw�v.�r��t�lr��oc��v Page 3 of 4 Crystal City Council Meeting Agenda July 15, 2014 d) The next City Council Meeting will be at 7:00 p.m. on Tuesday, August 19 in the Council Chambers at City Hall. 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S. { 3 1.1 1 , t z� t t t t t t.ttt 3 Sz t<t.,<t.,<t.,<t., t f t. t t } t t c :I..J i. fis. t t t tc� t..tt t„t» s-- s� r... t ��:� ,3. �s tzjt r: �< l. t tt�..t tt� t .�ft { f� 5 �t` .it t tt�..t tt�..t tt� }�� r S.t,, 3.�t t, t �,sa� } 1k�, f}7„}. i �:S .:r,. t .��.1r 7,..sa, x t# ;!;i r z..�i ta ..sat. t { ji. ia t.�. :b ..�� c{ .},i ,l:t,t,;,ha�i4t.,� vi1Z:.�t�t ,.��Jti{.�, .1�'a��lit,,;,��ljt u,3�.��.fi�Nfi,,�t�,i,..�}3Jf,r ,�� _� �s��, z��>f��. } ��s.,�� )?;�t,r,�t�t«,�,stt<..:1.,rh,�,`'�71tzi:;�zi ��r j�zs��rsf.(f.,t�'��f��,�� , , {s�t<,�,7{r;�f�.. Council Work Session to discuss: • Open to Business program survey 6:15 p.m. results Conference Room A • Franchise agreement with Comcast — NWSCCC • Commission liaisons reports/updates* 6:50 p.m. EDA Special Meeting Council Chambers 7:00 p.m. Regular City Council Meeting Council Chambers * Denotes no supporting information included in the packet. Have a great weekend; see you Tuesday night! Page 4 of 4 Crystal City Council First Work Session minutes June 17, 2014 2742 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the first work session of the Crystal City Council was held at 6:16 p.m. on Tuesday, June 17, 2014 in Conference Room A at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. Mayor Adams called the meeting to order. I. ATTENDANCE The city clerk recorded the attendance with the following members: COUNCI�: Adams, Budziszewski, Deshler, Hoffmann, Libby, Peak and Selton. STAFF: City Manager A. Norris, Assistant City Manager/Human Resources' Manager K. Therres, Public Works Director T. Mathisen, Finance Director C. Hansen, Police Chief S. Revering, City Attorney M. Norton and City Clerk C. Serres. II. AGENDA The Council and staff discussed the meeting time for canvassing of the primary election results on August 15, 2014 and continued discussion of financing for Winnetka Hills Mill and Overlay Project No. 2014-21. III. ADJOURNMENT The work session adjourned at 7:00 p.m. Jim Adams, Mayor ATTEST: Chrissy Crystal City Council Meeting Minutes June 17, 2014 2743 I. CALL TO ORDER ROLL CALL AND PLEDGE OF ALLEGIANCE Pursuant to due call and notice thereof, the Regular Meeting of the Crystal City Council was held on Tuesday, June 1 �, 2014 at 7:03 p.m. in the Council Chambers at 4141 Douglas Drive in Crystal, Minnesota. Mayor Adams called the meeting to order. :• �� Mayor Adams asked the city clerk to call the roll for elected officials. Upon roll call, the city clerk recorded the following attendance: COUNCI� Present: Adams, Budziszewski, Deshler, Hoffmann, Libby, Peak and Se STAFF City Manager A. Norris, City Attorney M. Norton, Assistant City Manager/Hurnan Resources Manager K. Therres, Public Works Director T. Mathisen, Community Development Director P. Peters, City Planner J. Sutter, Police Chief S. Revering and City Clerk C. Serres. PLEDGE OF ALLEGIANCE Mayor Adams led the Council and audience in the Pledge of Allegiance. Mayor Adams announced that the cities of Crystal, Golden Valley, New Hope, and Robbinsdale were officially proclaimed as Beyc�nd The Yellow Ribbon Cities on June 15, 2014 and thanked Councilmember Deshler for her efforts with the project. � COUNCIL MEETING MINUTE; The Council considered the minutes from the following meetings in a single motion: a. The Regular City Council Meeting from June 3, 2014; and b. The Council Work Sessi�n frorrt June 3, 2014. Moved by Councilm�mber Peak and seconded by Councilmember Hoffmann to approv� the above minutes in a single motion. Motion carried. The Council considered the following items, which are routine and non-controversial in nature, in a single motion: 1. Approval of the list of license applications submitted by the City Clerk to the City Council, a list that is on file in the office of the City Clerk; 2. Approval of disbursements over $25,000 submitted by the Finance Director to the City Council, a list that is on file in the office of the Finance Director; Crystal City Council Meeting Minutes June 17, 2014 III. CONSENT AGENDA CONTINUED 3. Approval of Resolution No. 2014-45, accepting donations from Armstrong Cooper Youth Hockey Association and the Crystal Lions; 2744 4. Approval of Resolution No. 2014-46, authorizing continued participation in CDBG and other HUD programs in 2015 — 2017; 5. Approval of a special permit to serve wine and beer for up to 50 guests at Bassett Creek Park on June 19, 2014, from 5-10 p.m., submitted by Jeffrey Angelini; 6. Approval of Resolution No. 2014-47, regarding State of Minnesota perFarmance measures; 7. Approval of Resolution No. 2014-48, appointing election jud,ges to the Absentee Ballot Board for the Primary Election on August 12, 2014 and the Ceneral Election on November 4, 2014; 8. Approval of the precinct election judge appointments for the Primary Election on August 12; and 9. Approval of a Joint Powers Agreement for Schc�ol Resource Officer services at Robbinsdale Middle School. Moved by Councilmember Hoffmann and seconded by Councilmember Deshler to approve the consent agenda. Motion carried. IV. PUBLIC HEARINGS 1. The Mayor anno� the purpose of the Public Hearing: Th:e consideration of #wo resolutions vacating certain streets and easements for a new public works facility at 5001 West Broadway. Citv Planner John Sutter addressed the Council. The Mayor opened the public hearing for testimony. There being no one wishing to appear before the Council to give testimony, Mayor Adams declared the public hearing closed. Moved by Councilmember Budziszewski and seconded by Councilmember Libby to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2014 — 49 RESOLUTION VACATING STREET EASEMENTS AT 4947 AND 5017 WEST BROADWAY Crystal City Council Meeting Minutes June 17, 2014 2745 IV. PUBLIC HEARINGS CONTINUED Voting aye: Adams, Budziszewski, Deshler, Noffmann, �ibby, Peak and Selton. Motion carried, resolution declared adopted. Moved by Councilmember Budziszewski and seconded by Councilmember Libby to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESO�UTION NO. 2014 — 50 RESO�UTION VACATING PART OF FAIRVIEW AVENUE NORTH ADJACENT TO 4947 WEST BROADWAY Voting aye: Adams, Budziszewski, Deshler, Hoffmann, �.ibby, Peak and Selton. Motion carried, resolution declared adopted. 2. The Mayor announced the purpose of the Public Hea�ing: The consideration of two resolutions for Winnetka Hills Phase 1 Mill and Overlay Project No. 2014-21. Public Works Director T. Mathis�n addressed the Council and answered questions. The Mayor opened the public hearing for testimony. The following persons addressed the Councif: , • Bruce Johnsor�, 8200 35t" Avenue North, regarding concerns about the project assessment costs. '• John Lindholm, 8117 32nd Avenue North, regarding concerns about traffic, project assessment costs and road cracking. • Elizabeth Dahl, 8217 30t" Avenue North, presented the Council with a list of residents that are not in favor of the project costs being assessed. There being no one else wishing to appear before the Council to give testimony, Mayor Adams declared the public hearing closed. The Council discussed options to finance the proposed project. Moved by Councilmember Selton to move forward with ordering the project. Motion failed for lack of a second. Crystal City Council Meeting Minutes June 17, 2014 2746 IV. PUBLIC HEARINGS CONTINUED Moved by Councilmember Peak and seconded by Mayor Adams to delay the project in order to have further discussion. Councilmember Selton called for the question. By roll call and voting aye: Adams and Peak. Voting nay: Budziszewski, Deshler, Hoffmann, �ibby, and Selton. on failed. Moved by Councilmember Selton and seconded by Councilmember Hoffmann to adopt the following resolution, the reading of which was dispensed wi#h by unanimous consent: RESO�UTION NO. 2014 — 51 ORDERING PUB�IC IMPROVEMENT PROJE;CT #2014-21 AND PREPARATION OF PLANS AND SPECIFICATIONS WINNETKA HIL�S MI�L ANb C7VER�AY By roll call and voting aye: Budziszewski, Deshler, Haffmann, Libby and Selton. Voting nay: Peak and Adams. Motion carried, resolution declared adopted. Moved by Councilmember 5elton and seconded by Councilmember Deshler to adopt the following resolutian, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2014 — 52 APPRt}VING PLANS AND SPECIFICATIONS AND ORDER ADVERTISEMENT FOR BIDS — PROJECT #2014-21 WINNETKA HILLS PHASE 1 MILL AND OVERLAY By roll call and voting aye: Deshler, Hoffmann, Libby, Selton and Budziszewski. Votina na�: Peak and Adams. Motion carried, resolution declared adopted. 3. The Mayor announced the purpose of the Public Hearing: The consideration of new on sale liquor licenses located at 3545 Douglas Drive submitted by Milton's Cafe ��C d/b/a Milton's Cafe. City Clerk Chrissy Serres addressed the Council. Crystal City Council Meeting Minutes June 17, 2014 2747 IV. PUBLIC HEARINGS CONTINUED Milton's Cafe owners Phil and Francine Weber addressed the Council and answered questions. The Mayor opened the public hearing for testimony. The following persons addressed the Council: • Bruce Johnson, 8200 35t" Avenue North, in favor of the Council approving the new on sale liquor licenses. • Jeff Kolb, 6404 38t" Avenue North, in favor of the Council approuing the new on sale liquor licenses. There being no one else wishing to appear before the Council to give testimony, Mayor Adams declared the public hearing closed. Moved by Councilmember Deshler and seconded by Councilrnernber Peak to approve the application for new on sale liquor licenses at 3545 Douglas Drive North submitted by Milton's Cafe LLC d/b/a Milton's Cafe. By roll call and voting aye: Hoffmann, Libby, Peak, Selton, Budziszewski, and Deshler. Abstention: Adams. Motion carried. Mayor Adams changed the order of the Regular Agenda by moving Regular Agenda #3 to Regular Agenda #1. V. REGULAR AGENDA 1. The Council considered a' cc�nditic�nal use permit for Milton's (3545 Douglas Drive North) to close �t 12:00 midnight seven days a week and 1:00 a.m. on January 1 of each year. City Planner J. Sutter and Chief Revering addressed the Council and answered auestions. received written objection to the proposed conditional use permit: nnifer and Tom Schmitt, 3430 Florida Ave N Milton's Cafe owners Phil and Francine Weber addressed the Council and answered questions. Moved by Councilmember Peak and seconded by Councilmember Libby to approve the conditional use permit to allow Milton's (3545 Douglas Drive North} to close at 12:00 midnight seven days a week and 1:00 a.m. on January 1 of each year as recommended by the Planning Commission at its meeting on June Crystal City Council Meeting Minutes June 17, 2014 2748 V. REGULAR AGENDA CONTINUED 9, 2014, based on findings of fact and conclusions outlined in Section C of the Staff Report. Voting aye: Libby, Peak, Selton, Budziszewski, Deshler and Hoffmann. Abstention: Adams. Motion carried. 2. The Council considered bids and a resolution awarding 2014 Cure In Place Sanitary Sewer Lining Project No. 2014-08. Public Works Director T. Mathisen addressed the Council and questions. Moved by Councilmember Hoffmann and seconded by Councilmernber Libby to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESO�UTION NO. 2(�14 — 53 AWARDWG CONTRACT - SEWER UTILITY PROJECT 2014-08 CIPP SANITARY �EWER LINING FOREST SOUTH NEIGHBORHOOD Voting aye: Adams, Budziszewski, Deshler, Hoffmann, �ibby, Peak and Selton. Nlotion carried, resolution declared adopted. 3. The Council considered authorizing execution of Amendment to the Bassett Creek Watershed Managernent Commission Joint Powers Agreement to extend Agreement to 2025. Public Works C�irector T. Mathisen addressed the Council. Bassett Creek Watershed Management Organization Commissioner Guy Mueller addressed the Council and answered questions. Moved by Councilmember Hoffmann and seconded by Councilmember Peak to authorize execution of Amendment to the Bassett Creek Watershed Management Commission Joint Powers Agreement to extend the Agreement to 2025. Voting aye: Adams, Budziszewski, Deshler, Hoffmann, Libby, Peak and Selton. Motion carried. Crystal City Council Meeting Minutes June 17, 2014 2749 V. REGULAR AGENDA CONTINUED 4. The Council considered a conditional use permit for MD �iquors (7200 56tn Avenue North) to close at 10:00 instead of 9:00 p.m. City Planner J. Sutter addressed the Council and answered questions. Moved by Councilmember Hoffmann and seconded by Councilmember Budziszewski to approve the conditional use permit to allow MD �iquors (7200 56t" Avenue North) to close at 10:00 instead of 9:00 p.m. as recommended by the Planning Commission at its meeting on June 9, 2014, based on #indings of fact and conclusions outlined in Section C of the Staff Report. Voting aye: Adams, Budziszewski, Deshler, Hoffmann, Libby, Peak and Selton. ` Motion carried. 5. The Council considered a variance for a freestanding monument sign at St. Raphael's School (7301 56th Avenue North) to be 10 feet 6 inches high instead of 6 feet. City Planner J. Sutter addressed the Council and answered questions. Moved by Councilmember Selton and secanded by Councilmember Budziszewski to approve the variance to allow a freestanding monument sign at St. Raphael's School (7301 56th A�enue North) to be 10 feet 6 inches high as recommended by the Planning Cornmission at its meeting on June 9, 2014, based on findings of fact and conclusions outlined in Section C of the Staff Report. Voting aye: Adams, Budziszewski, ,Deshler, Hoffmann, Libby, Peak and Selton. Motion carried. The Council considered a conditional use permit, variances and site & building plans for a new public works facility at 5001 West Broadway. er J. Sutter addressed the Council and answered questions. Moved by Councilmember Budziszewski and seconded by Councilmember Peak to approve a conditional use permit, variances and site & building plans for a new public works facility at 5001 West Broadway as recommended by the Planning Commission at its meeting on June 9, 2014, based on findings of fact and conclusions outlined in Section C of the Staff Report. Voting aye: Adams, Budziszewski, Deshler, Hoffmann, �ibby, Peak and Selton. Motion carried. Crystal City Council Meeting Minutes June 17, 2014 2750 V. REGULAR AGENDA CONTINUED 7. The Council considered authorizing a contract for demolition of 4947 West Broadway (public works facility site). City Planner J. Sutter addressed the Council and answered questions. Moved by Councilmember Budziszewski and seconded by Councilmember Hoffmann to approve authorizing a contract for demolition of 4947 West Broadway (public works facility site) to Kevitt Excavating. _ Voting aye: Adams, Budziszewski, Deshler, Hoffmann, �ibby, Peak and Selton. ��riotion cari 8. The Council considered a resolution approving plans and specifications and ordering advertisement for bids - Project #2014-10 Public Works Facility Construction. Public Works Director T. Mathisen addressed the Ct�uncil and answered questions. Ed Kodet from Kodet Architectual Group, Ltd. addressed the Council and answered questions. Moved by Councilmember Peak and sec�nded by Mayor Adams to adopt the following resolution, the reading of which was dispensed with by unanimous consent: TION NO. 2014 — 54 APPRO�/JNG F��.ANS AN,D SPECIFICATIONS AND ORDER ADVERTISEMENT FOR BIDS — PROJECT #2014-10 [[�7�[�I��I��l�l1il:��[K�1�1�7:1:(.��_��1�tii1 , Budziszewski, Deshler, Hoffmann, �ibby, Peak and Selton. Motion carried, resolution declared adopted. 9. The Council considered a resolution dissolving Five Cities Transportation Joint Powers Agreement. City Manager A. Norris addressed the Council. Moved by Councilmember Hoffmann and seconded by Councilmember Peak to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2014 — 55 Crystal City Council Meeting Minutes June 17, 2014 2751 V. REGULAR AGENDA CONTINUED RESOLUTION PROVIDING FOR NOTICE OF WITHDRAWAL BY THE CITY OF CRYSTA� FROM THE FIVE CITIES SENIOR TRANSPORTATION PROJECT AND TERMINATION OF THE PROJECT Voting aye: Adams, Budziszewski, Deshler, Hoffmann, Libby, Peak and Selton. Motion carried, resolution declared adopted. •' _ l •: l/ (Open forum is a time for individuals in the audience to address the Council o�r subjects not on the regular Council agenda. Individuals are asked to step up to the podium and speak clearly into the microphone. You are allowed'' 3 rninute$ to make your comments and no items may be addressed more than ten minutes. The Council will not take action on items discussed during open forum r�r di�cuss matters under pending or threatened litigation; however, the Council rnay add the item to a future meeting agenda and ask city staff for follow-up. No comments will be taken during tonight's Operr Forurn regarding the Ramirez matter. The Council is well aware of the issues and conc�rns of inembers of the community group, Communities United Against Po/ice Brutality and Crystal residents. The group's members have attended many city council meetings and have been in contact by telephone, email and wri#ten letter. The city has responded many times to requests for information. The city will provide any public information available in the future. Citizens are invited to'communicate with city staff or the Mayor and Council by email or letter abaut this or any other topic.) Michael Knowles, 3 concerns about the Manor and present� VII. IN a) re N, addressed the Council regarding his � retention pond adjacent to The Heathers a list of residents that support his concerns. D DI`SCUSSION e following announcements: usiness Association meets on June 18 at 8:30 a.m. at Crystal City b) Busking Becker will be held on June 19 at Becker Park starting at 6:00 p.m. c) City offices are closed on Friday, July 4, in observation of the Independence Day holiday. d) The City is not conducting a fireworks display for the Fourth of July Holiday. e) The next City Council Meeting will be at 7:00 p.m. on Tuesday, July 15 in the Council Chambers at City Hall. Crystal City Council Meeting Minutes June 17, 2014 2752 VI1. INFORMATION AND DISCUSSION CONTINUED f) Upcoming events in the City include: • Crystal Frolics - July 24-27; • MN Night to Unite is Tuesday, August 5. Registration forms are due by July 25. • Log onto the city's website to learn more at nro� �t�}��o��v V'n nn in� ioninn�nrr � C� Crystal City Council Second Work Session minutes June 17, 2014 2753 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the second work session of the Crystal City Council was held at 9:58 p.m. on Tuesday, June 17, 2014 in Conference Room A at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. Mayor Adams called the meeting to order. I. ATTENDANCE The city clerk recorded the attendance with the following members: COUNCI�: Adams, Budziszewski, Deshler, Hoffmann, Libby, Peak and Selt� STAFF: City Manager A. Norris, Assistant City Manager/Human Resourc K. Therres, Fire Chief S. Larson, Assistant Fire Chief J. Nelson, S. Revering, City Attorney M. Norton, and City Clerk C. Serres. OTHER: West Metro Fire-Rescue District Board Member M. Serie. II. AGENDA � � The Council and staff discussed the following agenda items: • West Metro Fire-Rescue District (WMFRD) update • Preview of 2015 WMFRD budget • Recording work sessions for public review • Commission liaisons reports/updates _ The following agenda item was postponed • WMFRD Major Apparatus Fund and . ADJOURNMENT The work session adjourned at 10:24' p.m. Chrissy Serres, City Clerk �� ture work session: needs Jim Adams, Mayor Q es tv�anager Police Chief Crystal City Council Work Session minutes July 1, 2014 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held at 6:33 p.m. on Tuesday, July 1, 2014 in Conference Room A at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. Mayor Adams called the meeting to order. I. ATTENDANCE The city manager recorded the attendance with the following members: COUNCI�: Adams, Budziszewski, Deshler, Hoffmann, Libby, Peak and Selton. STAFF: OTHER City Manager A. Norris, Assistant City Manager/Human Resourc� K. Therres, Fire Chief S. Larson, Finance Director C. Hansen, Co Development Director P. Peters, Police Chief S. Revering, and Ci M. Norton. West Metro Fire-Rescue District Board Member M. Serie. ager ey II. AGENDA The Council and staff discussed the following agenda iterns; • Funding major apparatus purchases/major apparatus fund balance policy for West Metro Fire-Rescue District • Update on public works facility project costs • Financing mill and overlay projects • 2015 budget assumptions • Replenishing Major Building Replacement Fund Confirm financing Crystal's portion of the emergency water supply III. ADJOURNMENT The work session adjourned at 9:� � Anne Norris, City Manager m. Jim Adams, Mayor 2754 CONSENT AGENDA #1 APPLI�CATI�ONS FOR CITY LICENSE July 15, 2014 CARNIVAL WITH GAMES Church of St Raphael 7301 56th Ave N Crystal MN 55429 Aug 1-Aug 3, 2014 GASINSTALLER Agape Mechanical 26106 N�ewton Circle Ste 7 E1ko, MN 55020 Air Mechanical Inc 16411 Aberdeen St Ham Lake, MN 55304 Airics Heating 2609 W Hwy ] 3 Burnsvi]]e,1VIN 55337 Bonfe's Plumbing & Heatin� 505 Randolph Ave St Paul, MN 55102 Larson Plumbing 3095 162" Lane NW Andover, MN 55304 Liberty Comfort Systems 627 east River Road Anoka, MN 55303 Ray Welter Heating Co 4637 Chicago Ave S lVlinneapolis, MN� 55407 Residential Heating & Air 1815 E 41st St Suite A Minneapolis, MN 55407 LIQUOR - OFF SALE Kai's Liquor of Brooklyn Park Inc dba Red Dragon Liquors 5924 West Broadway Crysta] MN 55428 (p�eapproved by Anne Norris on 6/30/2014) PLUMBER Air Mechanical Inc l 64l 1 Aberdeen St Ham Lake MN 55304 Den-Mark Plumbing 8445 Quail Hill Rd Maple Grove, MN 55311 Excel Mechanical Inc 7912 Kerber Blvd Chanhassen 1VIN 55317 Jim Murr Plumbing 780 19th St Newport, MN 55055 Mark McCo]]um :Plumbing l 5l 36 74th Ave N Maple Grove MN 5531 l. Peterson Daniel Russell dba D.R. Peterson 933 1 lth Ave S Ste 1 Hopkins MN 55343 Podany Plumbing 1218 Sugar Lane Chaska MN 55318 Polar Plumbing 6087 46th St N Oakdale MN 55128 Pope Plumbing 7380 Wyndham Way Woodbury MN 55125 Rightmark LLC P O Box 343 Buffalo MN 55313 Robillard Plumbing 10'720 Dunkirk Lane N 1Vlaple Grove MN 55369 RENTAL — NEW 4057 Idaho Ave N- Invitation Homes 5001 Jersey Ave N— Invitation Homes 3415 Major Ave N— Invitation Homes 3343 Nevada Ave N� #4303 — AS&W Rental Properties LLC (Conditional) 3347 Nevada Ave N#4704 — AS&W Rental Properties LLC (Conditional) 5708 Perry Ave N— Nicole Finke c/o Realty Connect LLC (Conditional) 5706 Sumter Ave N— Napsa One LLC c/o John Lavrenz (Conditional) 4824 Vera Cruz Ave N— Anne Nox c/o Renters Warehouse (Conditional) 5600 Vera Cruz Ave N— MNSF Mpls 2 LLC c/o Bayshore/Carrington Prop (Conditional) 5635 Yates Ave N— Estate of Jack Zemke c/o Justin Zemke (Conditional) 3820 Adair Ave N— Scott Lindquist (Conditional) 5319 Angeline Ave N— Brett Johnson c/o Renters Warehouse (Conditional) 4550 Colorado Ave N— Nicholas Pettigrew 46ll Colorado Ave N— Mitch Shepard (Conditional) Page 1 of 2 CONSENT AGENDA #1 RENTAL — RENEWAL CONTINUED 5734 Colorado Ave N— Kate Werner 3041 Douglas Dr N— Barbara Freund c/o REI Prop Mgmt (Conditional) 3422 Douglas Dr N— Wally Anderson 3448 Douglas Dr N— Bruce Krisko (Conditional) 3601-3603 Douglas Dr N— Robert/Katherine Kern (Conditional) 5131 Douglas Dr N— J�ames/Samantha Pachyak (Conditional) 2950 Edgewood Ave N— Patricia Mattson 5126 Edgewood Ave N— Wally Anderson (Conditional) 4125 Hampshire Ave N— Hakizumwami Runesha 4806 Hampshire Ave N� — Scott Lindquist (Conditional) 5906 Idaho Ave N— Miranda N Reed (Conditional) 2959 Jersey Ave N—Roxanne Elfering 5220 Jersey Ave N— Patrick Hauser (Conditional) 5827 Jersey Ave N— Harold Creek 2948 Kentucky Ave N— Wending Bo/ K Norman Ho 4227 Kentucky Ave N— Savannah Curtin (Conditional) 6920 Lombardy La — Tamara Miller (Conditional) 4602 Louisiana Ave N— Robert Mulvihill (Conditonal) 5419 Louisiana Ave N— Debra/Duane Sanovia 5625 Maryland Ave N— Douglas/Charlayne Heinzmann 3339 Nevada Ave N#3904 — Seitzer Two LLC (Conditional) 3341 Nevada Ave N#4l 02 — Seitzer Four LLC (Conditional) 5817 Nevada Ave N— Eric/Christine Johnson (Conditional) 5640 Perry Ave N— Invitation Homes (Conditional) 5641-5643 Perry Ave N— Park Ave Homes LLC (Conditional) 3400 Quai] Ave N— Daley Properties 1VIN� LLC (Conditional) 3401 Regent Ave N— Matthew Meyer c/o Midwest Realty Services 5513 Regent Ave N— Michael/Diane Dauk (Conditional) 5417 Toledo Ave N— Scott/Betty Miles 3340 Welcome Ave N— J�ohn Spi]ane (Conditional) 4725 Welcome Ave N— Wally Anderson (Conditional) 5825 West Broadway — Adam Hardy (Conditional) 4408 Yates Ave N— Ryan/Mandy Hardy 5416 5 l ST Ave N— lVtonica Hanssen 6407 52"d Ave N— Stacy Gebeke c/o Renters Warehouse '7516 59�h Ave N— Rodney Mischka c/o Renters Warehouse TOBACCO Kai's Liquor of Brooklyn Park Inc dba Red Dragon Liquors 5924 West Broadway Crystal MN 55428 (preappNoved by Anne Norris on 6/30/2014) Pagc 2 of 2 Pavee NDSupply Waterworks lTD Biue Cross Biue Shield of MN Kodet Architectural Group L7D Metropolitan Cauncil EnvironS PERA bominium Inc Envirobate Metro Palda & Sons Inc Balton & Menk Inc Goiden Valley JWC Peoples Electric Company PERR Stinson Electric Inc West Metro Fire Rescue Dist 1RS - EFTPS 1RS - EFTPS G\T.�ncaN�c.cis Pa}1Ch�ecicc o�er 825,000 Menb 1� \ � _ �1, : DATE: July 8, 2014 TO: Anne Norris; City Manager City of Crystal City Councif - FROM: Gharles Hansen, Finance Director RE; Expenditures over $25;000 Description Nydrant for 5540 Xenia Ave and 24" Piping for GR9 Watermain July Health Insurance P/W Building Architecturai Services for'May July Waste WaterService Employee & city required contributions: pay date 6/20/2014 Refund SAC Fees for 5401 51 st Ave Asbestas Removal at 4947 Broadway Ave W May PH 13 Becker Park Street Reconstraction JWC Emergency Well Services for May 9th May WaterGosts Councii Chamber Lights through 6/13 Employee & city required cantributians`, pay date 7/3l2014 JWC Crystal Pump Station Generator June Fire Budget Allocation Social Security, Medicare, & Federal Tax W/H; pay date 6/6/2014 Social Security; Medicare, & Federal Tax W/H; pay date 6/20/2014 Amount $43,099:80 $84,844:50 $166,984:80 $109,932.7Z $41;570:31 $131;705:00 $27,965.00 $30;458:10 $37;575:86 $123,675:90 $33,628:20 $42,434.39 $33,$20:00 $$0;684:52 $53,296:29 $54,7G7:79 $1,096,443.18 .. , � ... ., ..l. _ � , ..l. ■ .. CITY OF CRYSTA� RESOLUTION NO. 2014 - RESOLUTION ACCEPTING DONATIONS FROM AMERICAN LEGION AVIATION POST 511, CHESTER BIRD AMERICAN LEGION #523, CRYSTAL LIONS, WALMART AND WEST METRO FIRE RE�IEF ASSOCIATION WHEREAS, Minnesota Statute § 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution; and WHEREAS, said donations must be accepted by a resolution adopted by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crystal to accept the following donations: Donor American Legion Aviation Post 511 Chester Bird American �egion #523 Crystal �ions Walmart Walmart West Metro Fire Relief Association Purpose Crystal Airport Open House Crystal Airport Open House Crystal Frolics Crystal Police Reserves Crystal Police Reserves Crystal Frolics Amount $100 $300 $5,000 $250 $250 $17,000 And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the American �egion Aviation Post 511, Chester Bird American �egion #523, Crystal �ions, Walmart, and West Metro Fire Relief Association. Dated this 15th day of July, 2014. : Jim Adams, Mayor ATTEST: Gail Van Krevelen, Assessing/Customer Service Specialist CONSENT AGENDA #4 . � F= � u � w ry r3 � "�, �� i i � A.� r ... ......... ......... ......... ......... ......... ......... ......... ......... ......... � � � . ..... � .w= �[ ��@b a � ��. �� S 4I'�, � ... ... ... ... ... ... .... ..... ..... . . .... i ��,. � �� *$ .. .. .. .. .. .. .�. .�. .�. .. i{�� "'µm..,.r�'�:+T"�� ... .. ... ... ... ... ... ... ... � �� . "`'°' � r £� ,�t]6�� ,��}1'} � i _ �[ty csf C'Y1'�t�1 � l � 1 llr��x�l�s �S�-i�«}� �r�{s�al; l'�� 55�� xf �� R�; I�rc�lics l'irc��c�rks �'�rm�tt�t .�,��ctival ��1:`T � ��? �=1��..L-. ��. L��..��I� 1�e��a- ��ar�b�� %�[�}�t�r ��c3 �ity �t��icip, ��1� �� i� �� '�+le�f ��'letrc� �"�t�e��u� dist��i�i �r�verrti�ra S1�tf� 11�� r�vmew��i il�� p�r��i� .��zji�i�„� ta,4} �,'rrr�4 0�' ��4�licati�a�� sc�b�ni�t�d 6y �Iall�w��rc�ef Pyr°�rt�ck��i�� irac. �� t is app�cr�°�d f�ar il�e ��`�r�v��z� �� "�•iday ��u[y 2��t, �s�t� S��aarda� J�al�'��d�, ��i14 dis��,�. �F"tx:'iz= ��`�J�t 1�"est M�t�°a i°ii•��l�esc�a� ��str�ct �tati'I�as ��asczr�d c�1n�16��c�t ��tl� fi�iF4'� i�'?3 �t�14 �di�ic�n, air(�i�h is tE1e st��xd�rd �+�� ire��ar�Cs di�}�1aj�s. I�e��uiv Fpr� �e�t�rsi��l ��elbv'�Jc�}�° vvill b� i�n �it� bc,tki ev�a�i�2�s c�ft�te s��c�c�t t� ��sts�� cc��1i�a�� durir�w s�t a��p �ia�d fc�r ti1� sl��t� as we�l �� fiaving; �re su�pr�ss��in cre�vs +an st��ld�y E�ntii �]�� ``at! �Ae�r,3 is �i��i�, 't�Je l�ac�l� f�ar�v�rd tt� �far3��`+��>it]� �c��IyFrvc�i�d f'yr�te�i��x�cs I��c: �87�s y��r �01�i�k� st�re tt��s� �'rc�l�c� fr�e��rarks c�[�E�i°aticans �re �xcit�n� ��1 s�f� �ht�ws f�r �v�rvc�� tc� �r��y. Si� �er�ly�, Z�vi��~h�i��ps ,�i��-��ir�� 1��} �+,�lf �e��,�Cac��-�- [[7��}��'�y �"ic� C��larsi7�a1 �'it ��u�� i-� �. I`�;��t�� lr��s�, 1�i*��SS�?� �� '�t>i�e 7tii.Z3().;Y`��C}tl �`a:, r�i3.?�(}.id??�) io'"b�'��',1�"��'�i�3�:�i'C7�If:C'. �Cb�� t r�su� �� e��a�� r�� T'�t�� r� �s � �� a��,�,�� r��v �� r�� lUG7 �(GHTS UP�3�1 SFiE �ERT�FI��TE HQLt?ER, THIS G�RTtFIG,qTE C1iiES Nt3`T �.�EN�; P�C3FE5SI��IAL Pi��I�AM i�ISiJ�AI�CE B�C�M��RA;G� �xr�r�o �� L�r�� s�� cc,v�� a��r�� °� x�� Ra�eciEs ��ciuu. 37'1 ��. M�,RII� �C��r'� ��VC�:, �9JiTE 22t� I�lS�R��) l�FF��[�1P�� G�W�F�A�� N�°VATt� CAa �4949-a6�� t��u��R �: �.L4�Y�' s i:;F !.t?�1�t�N iNSUf�E� IhiSN�RER �n H�allyu�c��ad Pyr�it�chnics, In�: �N��RER �: 15F�7 Ai�ti�r Pcrant Edg�ri� N9�a �ii�� IAISUREI� �. C�4��R�€tG�S, THIS I� I"C7 CER`TIFY THA1` TH� F�C)L8�1�� C)F INS�RANG� �IS�"�� Lt�U'� HA,V� ��N I��U�f� �`C7 �"H� �IAt�lEC} It�SU��C7 A��i�'� �G�� TH� PERI�Ci iNCiIGAi�i�. t��T1�JIiH�`�.��C�1�J� A�1�' �EGiL11�EMEP�1g; �°��M t�� C�l��3Tk�rN C�F ANY CtihJ`�RACT 4R �TI�ER C�t)��.1�iEf�1T �IITH €�� aF'E�T T't� �m,+HI�H �"N�� EFt1"{FI�Ai� IVi.�,�Y �E 1S��I�CT �R MAY �'E1�1"AIN, 1"HE 3�I�UF�Ai�J�E AFFURC��C1 B"� THE PQ�IC�E i C3ESGE�IBEL� F�Ei��It�f QS ��..1BJ�CT T� t�LL TF�E TE�MS, �XGLUSIt7�9� r�l�� C�irl�ITl�lt*#S t�� aU�H PC1�IC1� i: co po�dc�r ��rrv� c�a�acv �xperz�-r:ara Lrrt rrp� o� rnasu€aa�ac� �r�L�� taur��s�R omrE �mr�ra�tt v) r��aT� ��in�rz�a�rv} �.s€�t�rs ��at ��ag€Ls� ��cw ��c��r�-r � 2;4��,�� I�AfM� �t.��E —°—____ �Ep1�Al. �XF (A.ny �rn� �" PY114-Q435B; �}5J16l2�l14 4751�l5f�i715 �rs�wri $ �Il�� t�EGAL �IA�tL9'�'t � 50,0C�� G�t�$L ��€��ar� �i�nar �er��t�z A��a'�� $ 2,C7d�,��fl ��PLI�S i�ER Pi?�.1�Y P��3�l�GiS-C(7h��JG�S AGC $ A,tJ�'�Bt�46EL� LIA�iLITY G�}fe��IM1E�7 51NCLE L.I�AIT (�� ident) � � RaPe6Y A,UTC� BCY�ILI` CFiJURY _— ANY' �iN�EC& AUTC75 P�r 2rsn�r � S�HEI7ULE� �tJ"f'C7� �QDI[�Y �FJJUFiY � ' }iiRE9? 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EXCESS LEA$31t��TY FC7LLC?YY61V� �`��11 EACH A.GCI�E�lT $ A�t_`,R�Cse�7� $ 1�ltC STATU- t;Th#- WC6�K�EiS �C}Nd��kSAiI�N FflRY LlN64T5 ��2 $ ANI7 .__.�._�.M____ E�1F�CG's°�R�' Lkf486LiTY �.L. t)15� 5��, ��L. �_�. .: �. �� _��_�_ .. �YE� � E.L �15EASE-F*�LICY LCM1T $ t7TH� R c��s��a��u �� r��r�T�r�r�s��.�c��r��sr�r�Hic��sr�x��s��€��s �� v �r��c��s��ra�r��ci��. ��av�si�r�s Grystal Frc�li�s Ctimrr�ikt�e an�i �ity �f C�st�al, NiN are F#dditional lrrsured as re�pe�ts �he Q71c�12(?14 and a7l2�/2t�14 aeri�l f�rewrarks d��pl�ys lc�c�i�d �t: B��er Park o� B�ss ��k� �caad �nd H�+y 81, Crystal, M�!_ C�Ft1`iFl��7`� �iiL�ER CAP�C�L.�TI�N ,iH{3UL� A,MY C'�F T&�E ABC}VE tiESCRi�� PC7�;IC�� B� CAN�Ei.LEt3 BE�C}�t� 7H� �ryst�! �"rC7lic� �aacnmiite� EXPeRAT[ON I�ATE TH�REp�, iHE i�SUE�#� ��M�AN�` UV�LL ENa�AVCSR TC� N1AIL �'C7 �a� �8C17A t�RY� W�itii�N �i0`ii�� i4 1'H� ��TI�BCATE F4Qfl.�ER NA�7Ei� "SCr TH� L�Fi, �U7° G�ySt�i, �N 5�a$�� FRkLURE:I`� t±�A1L SU��M Ni��'9�E SHA�4� I�PC"��E NO �3BLIGAT�t�N 43R L�A�ILI`i�t Ki� ,4NY KINa UP�t� TH� INSURE�, E3'S AG�PITS 5�N"fi�ii"�£S.: AUTF�CiR1Z� REF��ESENTA7It�� -��-` CONSENT AGENDA #S , Q�¢�� °� �"�< �� x R�' � Minnesota Department ofPubIic Safety _='��'�'Y h�r,�, �. � �: h` ALCC}HUL AI�D GAMBLING ENFC}RCEMEI�IT DIVISIOI� �`� �� k=.� � . -., �`S'� �°' 444 Cetiar Streeg Suite 222, St. Paul MN 55101-5133 �� :'' . u=,.��"` �"fE�F'"�""��' `` {651) 201-7507 Fax (551) 291-5259 TTY (651} 282-6553 �*��k�� ..�., WWW.DPS.STATE;MN.US APPLICATIO11t AIVI� PERMIT FC}R A 1 TC� 4 DAY TEMPORARY ON-SALE LIQUOR LICENSE TYPE OR PRINT INFORNft�TiON N�1ME OF ORGAI�IIZATION DATE QRGANIZED TAX EXEMPT IVUMBER � �'tt�i ''(. �l C;. pw t.'."'.f. Lt e��l�,' �` � �-� � T STIZ�ET ADI7RESS � CITY STA`TE ZIP C(7DE � � C?� t? � a � E? G�c�'G�i a�'t /c;�jf }.� , �j'� �.f .� � Iti�AIviE PERS{7N MAKING APPLICATiON BU INBSS PHt}IVE HOME PHONE , � ' ) :� G �� i��) �;j ,� - �G�' 1 DATLS LIQUO WII..� BE LD �� TYPE OF ORGANIZATION ` _, . " _.._ C T BLE ELT �� ER N 1tiiF' FI'3' C7RCxANIZATION OPFIGER'S NAME qT}Z}��g j+"� � � . d�1�; ;. ,� {71r1 l ��t dtJ� � ' lfl, ., ��! l'�d�7 , �..�,/ '� j*j 0 GANIZATION OFFIG�R'S NAME ADD 5S .. .. . � . nnn e �rr� n mrr�z..�...�..r..,-...,.,.�_: . �_ �__..� � .... .............. ... ......... . .. .. Locatian licei�se �viil be used. If an autdoor area, describe 4 � vr � li1�1b'tf �'1 (d `�'�`*t,et'l f""1''��%� t�t't`� Will the appIicant cotntract for intaaicating liqaorservice? If sa, give ihe name and address of the Iiquor Iicenseeproviding tl�e service. ! V dJ� WiII the applicant carry liquar liabil'rty insurance? If so, plea e provid� the carrier's name and amount of coverage. �,� ' ' �c ;,c • "�- APPROVAL r�PPLI�ATiCDT� Mi1��' B� AP�ROV�T� BY �IT'[' CiA CC}UN'I'1' �EFORE SUBMITTING TO ALCt}H(}L & GAiVIBLING ENFOR�EMENT CITYtCOUNTY I�ATE APPROVED �^ .> m� �,� �„ CITY FEE AMOUNT �, . LICEiVSE I)ATES � �� "" � � �� DATE FEE PAIU � SIGi1ATUR� CITY CLERK (}R COUttitTY QFFICIAL APPROVED 1?IRECTOR ALCQHOL ANI} GANIBLII�'G �NTC1RCElY�NT Nt�TE; Sabmit Yhis form to #lie city ar counfy 30 days prior fo event. Fot�vard applicatian signed by city �nt�/ar county ta tlte address above. If tlte �pptication is apprat�ed the Aicohol ;md Gambling �nforcement Division Svilt return this appliczifian #a be useti as the License for the event P5-04079{12/09) Certiticate �f Coverage D�te:6'19''°l� CertiTcate Holder This Cerdficate is issued as a matter of information only and Archdiocese of Saint Paul and Minneapolis confers no rights upon the holder of this certificate. This certificate Chancery Office does not amend, extend or alter the coverage afforded below. 226 Summit Avenue $t. P3U1, 1V1N 5$1 �2 Company Affording Coverage TF� CATHOLIC MUTUAL RELIEF Covered Location SOCIETY OF A.MERICA 10843 OLD MiLL RD St. Raphael Catholic Church OMAHA, NE 68154 7301 Bass Lake Road Crystal, MN 55428 Co�-erages This is to certify that the coverages listed below have been issued to the certificate holder named above for the certificate indicated, notwithstanding any requirement, term or condilion of any contract or other document with respect to which this certificate may be issued or may pertain, the coverage afforded described herein is subject to all the terms, exclusions and conditions of such coverage. Limits shown may have been reduced by paid claims. Type of Coverage Certificate Number Coverage Effective Coverage ErpiraHon Date Date Limits Property Real & Personal Property D. General Liability Each Occurrence 500,�00 General Aggregate � Occurrence Products-Comp/OP Agg 8589 7/1/2014 7/i/2015 � Claims Made Personal & Adv Injury Fire Daroage (Any one fire) Med Eiep (Any one person) Excess Liability Each Occurrence 8589 7/1/2014 7/1/2015 500,000 Annual Aggregrate Other Each Occurrence Claims Made 7/]/2014 7/1/2015 AnnuatAggregrate LimidCoverage Description of Operations/LocaHonsNehicles/Special Items (the following language supersedes any ather language in this endorsement or the Certificate in conflict with this language) Coverage is verified with regard to Covered Location's Parish Festival, to be held on parish grounds, August 1-3, 2014. Includes Liquor Liability and Fidelity for Charitible Gambling. Holder of Certificate Cancella6on Additional Protected Person(s) Should any of the above described coverages be cancelled before the eapiration date thereof, the issuing company will City of Crystal, MN endeavor to mail 30 days written notice to the holder of & MN Gambling Control Board certificate named to the left, but failure to maii such notice shall 1711 W County Rd B, #300 South impose no obligation or liability of any kind upon the company, Roseville, MN 55113 its agents or repi•esentad��es. Authorized Representatire ; ' ,s �,`' � , ` / l oii�000ll� �`„ �� l, � � . .,� , ENDORSEMENT CONSENT AGENDA #S (TO BE ATfACHED TO CERTIFICATE) Effective Date of Endorsement: 8/1/2014 Cancellation Date of Endorsement: 8/4/2014 Certificate Holder: Archdiocese of Saint Paul and Minneapolis Chancery Office 226 Summit Avenue St. Paul, MN 55102 Location: St. Raphael Catholic Church 7301 Bass Lake Road Crystal, NIN 55428 Certificate No. 8589 of The Catholic Mutual Relief Society of America is amended as foilows: SECTION II - ADDITIONAL PROTECTED PERSON(S) It is understood and agreed that Section 11- Liability (only with respect to Coverage D- General Liability), is amended to include as an Additionai Protected Person(s) members of the organizations shown in the schedule, but only with respect to their liability for the Protected Person(s) activities or activities they perform on behalf of the Protected Person(s). It is further understood and agreed that coverage extended under this endorsement is limited to and applies only with respect to liability assumed by contract or agreement; and this extension of coverage shall not enlarge the scope of coverage provided under this certificate or increase the limit of liabiliry thereunder. Unless otherwise agreed by contract or agreement, coverage extended under this endorsement to the Additional Protected Person(s) wilt not precede the effective date of this certificate of coverage endorsement or extend beyond the cancellation date. Schedule - ADDITIONAL PROTECTED PERSON(S) City of Crystal, MN & MN Gambling Control Board 1711 W County Rd B, #300 South Roseville, MN 55113 Remarks (the following language supersedes any other language in this endorsement or the Certificate in conflict with this language): Coverage is verified with regard to Covered Location's Parish Festival, to be held on parish grounds, August 1-3, 2014. Includes Liauor Liability and Fidelity for Charitible Gambling. � �n t � �� r `� l ( . r''/ �..�.: .�,d . a' �� Authoriz�d Representati�-e � PKS-122(10-11) 1� \ : _ � 1_� : •. � COUNCI� STAFF REPORT ��fi�� Consent Aqenda: Solicitor License ��►�: July 15, 2014 Council Meeting MEMORANDUM DATE: June 23, 2014 TO: Crystal City Council City Manager Anne Norris FROM: Administrative Services Caordinator Trudy Tassoni SUBJECT: Solicitation licenses for True Protection True Protection is requesting a solicitation license for the following six individuals to go door- to-door in Crystal from June 23, 2014 through July 22, 2014, to sell and schedule appointments for the insta]lation of home alarm systems: Jeff Caquelin, Cameron Duke, Ryan Dziuk, Gabe Koogler, Evan Ruen, and Matthew True. All six individuals named above passed a criminal history check conducted by the 1'olice Department; therefore, City Manager Anne Norris pre-approved these ]icenses on June 23, 2014. Council Action Requested As part of the Consent Agenda, approve a solicitation license for the following six individuals to go door-to-door in Crystal from June 23, 2014 through July 22, 2014, to sell and schedule appointments for the installation of home alarm systems: Jeff Caquelin, Cameron Duke, Ryan Dziuk, Gabe Koogler, Evan Ruen, and Matthew True. Thei� applications a�e available fo� �eview in the city cle�k's office. .. , � ... ., ..l. _ � , ..l. ■ / � COUNCI� STAFF REPORT ��fi�� Consent Aqenda: Solicitor License ��►�: July 15, 2014 Council Meeting MEMORANDUM DATE: June 23, 2014 TO: Crystal City Council City Manager Anne Norris FROM: Administrative Services Caordinator Trudy Tassoni SUBJECT: Solicitation licenses for Vision Security Vision Security is requesting a solicitation license for the following nine individuals to go door-to-door in Crystal from June 23, 2014 through July 22, 2014, to sell and schedule appointments for the installation of home security systems: Matthew Bacon, Lanna Dang, Derek Eisenbach, Tayler Gallagher, Manny Hentges, Christopher Love, 1VLichael Menzel, Andrew :Romeo, and Alan Ruiz. All nine individuals named above passed a criminal history check conducted by the Po]ice Department; therefore, City Manager Anne Norris pre-approved these licenses on June 23, 2014. Council Action Requested As part of the Consent Agenda, approve a solicitation license for the following nine individuals to go door-to-door in Crystal from June 23, 2014 through July 22, 2014, to sell and schedule appointments for the installation of home security systems: Matthew Bacon, Lanna Dang, Derek Eisenbach, Tayler Gallagher, Manny I-Ientges, Christopher Love, Michael Menzel, Andrew Romeo, and Alan Ruiz. Thei� applications a�e available fo� �eview in the city cle�k's office. 1 \ \ '. _ \ 1_'. : % COUNCIL STAFF REPORT Consent A�enda: Special Permit for Wine/Beer Council Meeting: 7/] 5/2014 �' • 1 DATE: June 27, 2014 � SUBJECT: Crystal City Council City Manager Anne Norris Administrative Services Coordinator Trudy Tassoni Application for Special Permit for Beer/Wine at Bassett Creek Park Susan Wipson, event coordinator for No Dogs Left Behind, has applied for a special permit to serve beer/wine at Bassett Creek Park on Sunday, August 10, 2014, from 12:00 — 4:00 p.m. for approximately 50 volunteers and dog fosters to attend a BBQ. The City received a Certificate of Liabi]ity Insurance showing coverage through I]]inois Union Insurance Company. Council Action Requested As part of the Consent Agenda on July 15, 2014, approve the Special Permit for Beer/Wine submitted by Susan Wipson, event coordinator for No Dogs Left Behind. The application is available fo� �eview in the city cle�k's office. 1� \ : _ � 1_� : � COUNCIL STAFF REPORT Consent A�enda: Special Permit for Wine/Beer Council Meeting: 7/] 5/2014 �' • 1 DATE: July 9, 2014 � SUBJECT: Crystal City Council City Manager Anne Norris Administrative Services Coordinator Trudy Tassoni Application for Special Permit for Beer/Wine at Yunkers Park Caleb Dah1 has applied for a special permit to serve beer/wine at Yunkers Park on. Wednesday, July 16, 2014, from 6:00 — 8:30 p.m., for up to 100 guests to attend a neighborhood get together. The City received a Certificate of Liability Insurance showing coverage through Auto Club Insurance Association. Council Action Requested As part of the Consent Agenda on July 15, 2014, approve the Special Permit for Beer/Wine submitted by Caleb Dahl. The application is available fo� �eview in the city cle�k's office. . i � ...�. ! ..._, ,..l.. 1 ...'J emOraildU '..CITY�:��:bP�� . G`RY.S'I`AL DATE: July 8, 2014 TO: Mayor and City Council FROM: Anne Narris, City Manager � � SUBJECT: Franchise Renewal — Comcast and NW Suburbs Cable Commissian BACKGRCIUND: Rs you knaw, Crystal is a part af the NW Suburbs Cable Communications Commission (NWSCCG}, a jaint powers arganization which manages cable service in the northwest suburban communities. NWSCCC has a franchise agreement with Comcast far cable services which is nearing expiration. A cammittee of the NWSCCC has worked on the franchise renewal proces� and the franchise agreement over the last 3 years. Th�t committee has recommended approval of the the Renewal Franchise Rgreement . The terms of the Renewal Franchise Agreement are: - � 0 year term; - Increased franchise fee and an upfranfi capital grant far transitioning to all digital programming; = 2 high definition channels {HD) although 40% of current subscribers do not subscribe to HD service; - Electr�nic pragram guide access for facal programming channels; - Continued free basic cable service to public buildings; and - Continue the locai programming and pubiic access. - The pracess for approval of the neuv 10 y�ar franchise agreement is aII NWSCCC member cities have 30 days to review and comment an the proposed Renewal Franchise Agreement (attached). Any comments r�eed ta be provided to the NWSCCC by August 6. After that, the NWSCCC will hold a public hearing at its September 1� meeting to consider appravai af the Renewal Franchise Agreement. RECOMMENDATION: Given the August 6 deadline, the Council will review the prapos�d Renewal �ranchise Agreement at its July 15 work session prior to fiaking actian at the regular meeting to receive and camment on the Renewal Franchise Rgreement with Comcast. . � � .. .�. : ..._ � � ..:.. i .... �J To: NWSCCC and Member Cities From: Mike Johnson — Executive Director Date: July 9, 2014 Re: Franchise Renewal The Cable Franchise Renewal documents were sent to all nine of the member cities last week. The process allows for a 30 day review period for cities to look over the documents and comment or ask questions if they wish. Due to the amount of information and all the legal language associated with the proposed agreement, this memorandum may be helpful to city officials and or city staff to obtain a better understanding of the Northwest Suburbs Cable Communications Commission (NWSCCC) and Northwest Community Television (NWCT), the cable franchise process and some of the highlights of the proposal and a look at cable competition. Brief History of NWSCCC and NWCT A joint cable television service area was first discussed in 1971. The founding member cities included: Crystal, Golden Valley, New Hope and Robbinsdale. At the time, the group was officially known as the "CATV Joint Committee". The 2 people credited with forming this group initially was Jack Irving from Crystal, and Ray Stockman from Golden Valley. Both Jack and Ray have since passed away after dedicating nearly 30 years each to the organization. Cities throughout the country began looking into the feasibility of having a cable television system in their city. The first metro cities to offer cable service in the 1970's were Bloomington, Fridley and St. Louis Park. In the fall of 1972, each of the 4 cities adopted a resolution to form a Joint Powers Agreement to form the "CATV Commission". In 1979, five additional cities began discussions of becoming members of the Joint Powers Agency. Those cities include: Brooklyn Center, Brooklyn Park, Maple Grove, Osseo and Plymouth. Subsequently, the group was named the Northwest Suburbs Cable Communications Commission once all nine cities were members. 1981 was the year cable commission activity surged and has been going strong ever since. The original cable system construction began in 1982. Several companies at the time were interested in offering a proposal in the northwest suburbs to build a system. It was not economically viable at the time for any company to compete head to head in the same service area. Storer Cable was granted a 15 year franchise to the Northwest Suburbs. After the expiration of the 15 year cable franchise, another 15 year franchise was granted in the 1990's to the cable company operating at the time. The Northwest Suburbs Community Access Corporation doing business as Northwest Community Television (NWCT) is a separate 501-C3 non-profit organization. Discussions about forming a separate entity to handle all of the community television operations began in 1981 and the Articles of Incorporation were formulated in 1982. There are 15 members on the NWCT Board. 1 member appointed by each of the nine member cities. 4 members appointed At Large by the Cable Commission. 2 members elected by the Community Producer Volunteers. . � � .. .�. : ..._ � � ..:.. i .... �J There was a transition in May of 1985 in which the cable company transferred all local programming responsibilities and staff to NWCT. The plan was for NWCT to operate Community Access and produce professionally produced Local Origination programming. NWCT was prepared and in position to take control of all community programming aspects. The formation of NWCT in 1982 and the transition to overall responsibility for all local programming in 1985 was paramount to the highly successful operation we have had since then. NWCT as well as its flagship Channel 12 is recognized both locally and nationally as one of the most successful community television operations in the country. NWSCCC & NWCT moved into its building in 1986. Both organizations operated out of the cable company building prior to 1986. We are a community resource that is valued by the cities and the residents. Our core mission is to be a service to our cities. The Northwest Suburbs Cable Communications Commission and Northwest Community Television meet quarterly. The unwavering support of Cable Commission and NWCT Board Members and our member cities has always been essential to the success of our operation. Many Mayor's, Council Members, City Manager's, City Staff and Community Representatives have had a hand in our success throughout the years. We cannot thank them enough for their dedication to this organization. We are honored to have Bill Blonigan and Jim Willis continue to serve on the Cable Commission from the time operations began to take off in 1981 and Dr. Duane Orn, representing Brooklyn Center since 1982 on the NWCT Board. Current Cable Commission Members in city alphabetical order: Brooklyn Center: Rex Newman & Tim Willson Brooklyn Park: James Jackson & Jamie Verbrugge Crystal: Julie Deshler & Anne Norris (Vice Chair) Golden Valley: Joanie Clausen & Joan Russell Maple Grove: Phil Leith & A1 Madsen (Chair) New Hope: Andy Hoffe & Kirk McDonald Osseo: Doug Reeder & Mark Schulz Plymouth: Helen LaFave & Jim Willis Robbinsdale: Bill Blonigan & George Selman Current NWCT Board Members: Brooklyn Center: Dr. Duane Orn Brooklyn Park: Jamie Verbrugge Crystal: Anne Norris (Vice Chair) Golden Valley: Thomas Burt Maple Grove: Al Madsen New Hope: Kirk McDonald Osseo: Doug Reeder Plymouth: Helen LaFave Robbinsdale: Marcia Glick (Chair) At Large Members: James Jackson, Zipporah Mesesi, Rex Newman and Joan Russell. Elected Members: Donald Jackson and Jesse Stinski . � � .. .�. : ..._ � � ..:.. i .... �J Franchise Renewal The Federal Cable Act, Section 546, includes the procedural requirements for local governments to comply with for cable franchise renewals. This law gives cable operators having an existing cable services franchise a presumption of renewal unless, based upon a process of the local franchising authority (NWSCCC), it is determined that certain findings as spelled out in the Federal Cable Act cannot be met and approved. The NWSCCC Franchise Renewal process started approximately three and a half years ago upon receipt of a letter from Comcast dated January 3, 2011 requesting to renew a franchise agreement for 10 years with NWSCCC. The franchise agreement is non-exclusive. This means other companies can come in and compete. The NWSCCC met on February 27, 2011 to discuss the renewal and the process moving forward. There were many steps along the way throughout the Franchise Renewal. We have had a total of 17 negotiating meetings. Some of the meetings were with Comcast and some without. In addition, we discussed Franchise Renewal at 14 of our Cable Commission meetings. At this point, there have been Franchise Renewal discussions at a total of 31 meetings. There were 2 phases within the renewal process, they included the Needs Assessment Phase and the Negotiating Phase. A lot of documentation was provided to Comcast related to our Needs Assessment. The documentation included surveys of stakeholders and scientific viewership surveys. Commission members toured Comcast technical head end buildings in Roseville and toured the local Comcast Twin Cities office located in St. Paul. Technical Consultants were hired to review our needs as related to technology for High Definition (HD) transmission, Video on Demand and Mobile Video Applications. The architectural firm that designed our building back in 1985 was hired to review the building infrastructure needs over the next 10 years such as roof replacements, HVAC controls, lighting, etc. The firm also provided cost for an expansion to the building. The building expansion was taken off the table due to the overall expense of the project. It was determined that we can function within our current footprint and focus our attention on building infrastructure improvements and technology for television production. The current 15 year agreement expired on December 1, 2013. The NWSCCC approved a Cable Franchise Extension via resolution to be effective December 1, 2013 through March 31, 2014. Another Extension was granted in February also via resolution to be effective from March 31, 2014 to July 30, 2014. We anticipate one final extension simply to get us through the final steps in the process after the Public Hearing on September 18tn Several months ago, Comcast announced that it would be merging with Time Warner. If the merger is approved by federal regulators later on this year, Comcast will need to divest of systems in Minnesota as well as other areas in the country because federal regulations only allow a cable company to have about 30% of the cable subscribers in the country. It is most important to make clear that if there is an ownership change between Comcast and Midwest Cable, Midwest Cable will be required to abide by the franchise agreement agreed to between Comcast and the Northwest Suburbs Cable Communications Commission. . � � .. .�. : ..._ � � ..:.. i .... �J Community Programmin P�roposal Highli�hts In the Proposal In summary, the Proposed Franchise Agreement provides for stable funding for capital expenses related to our operation and the technical operations at all of the city halls we serve. We will operate 5 Serial Digital (SD) Channels and 2 High Definition (HD) Channels. Currently, approximately 40% of the subscribers do not subscribe to HD service. There is language in the Proposed Franchise Agreement that all of the SD channels could transition to HD channels if the cable company eliminates SD channels on the basic service tier. In addition, there is language that would give NWCT an option to swap 3 SD channels for 1 HD channel by request after the first 3 years of the signed agreement. Electronic Program Guide (EPG) access for all local programming channels. This is extremely important in terms of being able to find specific programs on the schedule, setting recordings if you have a DVR, etc. This will also eliminate the need for public access to tie up an entire channel to promote its schedule. We certainly can find new and innovative ways to help public access promote its classes to the public. Like inserting promotional spots between programming on the community access channels, airing spots on channel 12 and potentially ad avail spots on the cable system. Video on Demand is included in the agreement. This will give us an opportunity to test the technology for Public, Educational and Government programming as well as Channel 12. The ability for channel 12 to connect to the cable network to share and cablecast sporting events and other relevant programming that may have regional significance tlu•oughout the twin cities. Continued free Basic Cable Service to public buildings. $30,000 per year in Ad-Avail spots (air time) on the cable system. $200,000 one time up front Capital Grant. The continued ability to request an additional channel from the cable company if certain programming thresholds are met. From a local programming perspective, the franchise agreement will give us the ability to continue our mission in serving cities in the northwest suburbs with some of the best local programming in the country for many years to come. Our goal is to continue with that tradition that started over 30 years ago thanks to the strong and unwavering support of our member communities. . � � .. .�. : ..._ � � ..:.. i .... �J Competition to Cable We are often asked by cable subscribers if there will be additional competition with the cable company in the future. When we look back to the very beginning, cable became the competition for over the air broadcast. Over the air broadcast of course is free, but cable offered many more options for the consumer in terms of more variety of programming and channels. The cable industry eventually began to offer phone and internet service beyond traditional cable television video service. Cable companies began to see real competition when the satellite industry took off. Twin Cities based Hubbard Broadcasting founded United States Satellite Broadcasting (USSB) in the 1980's. They partnered with Hughes satellite and was later purchased by DirectTV in 1998. The satellite television industry really started to have an effect on cable subscribership in the 1990's and still does to this very day. One thing that was not around at a consumer level when the cable system was built in the early 80's was the internet. In fact, NWSCCC and NWCT operated with typewriters only until 1984 when we purchased our first IBM personal computer. Although the internet had been around for years for military purposes and at universities, it really did not take hold among the masses until the 1990's. Search engines Netscape and Yahoo were founded in 1994 and Google in 1998. The internet today is big competition to cable. Many people stream Netflix and other content through the internet pipeline. That pipeline of course is offered by cable companies as well as telephone companies. Cable has the edge at this point in time of overall higher speeds. Cable customers can "cut the cable cord" and have internet provided through a local competitor though if they wish. Wireless video via smart phones and tablets are also changing the wired world as we know it. The next real wave though of wired competition could very well come from Century Link, AT&T or even Google. Google is beginning to wire cities across America with a 1 gigabit fiber link to the home. Most of the current cable connections to the home are done via coax cable that feeds to a node that may be connected via fiber. Google is currently experimenting with cable broadband operations in Kansas City, Missouri, Austin, Texas and other cities. They are competing head to head with the cable company serving the same area. It's simply a matter of time before the northwest suburbs and cities throughout Minnesota and across the country see additional competition. . � � .. .�. : ..._ � � ..:.. i .... �J JUIy 1, 2�14 Anne Norris City Manager City of Crystal 4141 Douglas Drive Crystal, MN 55422 RE: Franchise Renewal Process — Member City Review Dear Anne: As the designated representative to the Northwest Suburbs Cable Communications Commission ("Commission"), we are furnishing you with a copy of the Commission's recommended Renewal Franchise Agreement between Comcast and the Commission, together with a draft energy efficiency side letter, and a Local Programming Agreement for Channel 12 According to the terms and requirements of the Joint Powers Agreement, each Member City shall have 30 days to review the recommended Renewal Franchise Agreement as recommended by the Commission. Will you let us know before August 6, 2014 if your city has any comments? The Commission will then schedule a Public Hearing in September at the Commission offices. Communications in response to this letter should be directed to Mr. Michael Johnson, Executive Director, at 6900 Winnetka Avenue North, Brooklyn Park, Minnesota 55428, mjoh�lson�z�n��ct.or�. The voice contact number is 763-533-8196. (Ask for Extension 223 or Mike Johnson in Administration.) As background, and of importance to your City, is the process that the Northwest Suburbs Cable Communications Commission undertook to negotiate a Franchise with Comcast providing for a term of 10 years and ensuring that the Franchise incorporated the needs and rec�uirements of each Member City that was identified during the franchise renewal process. A Negotiating Committee of the Commission, including Al Madsen, Chair; Mike Johnson, Executive Director; Anne Norris, Vice Chair; Helen LaFave; Bill Blonigan; Jim Willis; Jamie Verbrugge; and Rex Newman, was appointed by the Commission to develop a recommended renewed Franchise Agreement through its negotiation with Comcast at the direction of the full Commission. The process followed by the Negotiating Committee working in coordination on behalf of the full Commission and with regular meetings with Comcast representatives has taken place over the last three and one-half years. We believe that the renewed Franchise Agreement includes requirements that will ensure that the needs of each of the Member Cities will be met. . � � .. .�. : ..._ � � ..:.. i .... �J I will be more than pleased to discuss any aspect of the Franchise Agreement negotiations and the recommended new Franchise Agreement with you. Also, should you have any questions or comments, please do not hesitate to contact Michael Johnson, Executive Director of the Northwest Suburbs Cable Communications Commission at the above telephone number, address, and e-mail. The Northwest Suburbs Cable Communications Commission and Northwest Community Television have been providing excellent service to the nine member city consortium for over 32 years. Thank you in advance for your cooperation and review of this most important Franchise for your community. Sincerely, A1 Madsen, Chair Northwest Suburbs Cable Communications Commission Attachments . � � .. .�. : ..._ � � ..:.. i .... �J PROPOSED FRANCHISE RENEV��AL AGREEMENT BETWEEN NORTHWEST SUBURBS CABLE COMMUNICATIONS COMMISSIOlv ,� �OMCAST OF MINNESOTA/WISCONSI`v INC. July 1, 2014 Submitted for informal renewal negotiatio��s oaily (47 U.S.C. 546 (h)) -�ursuant to Federal Rules of rvidence 408 or its state, local or city ec�uivaleni. . � � .. .�. : ..._ � � ..:.. i .... �J TABLE OF CONTENTS SECTION1 DEFINITIONS ....................................................................................................... 2 AccessChannels ................................................................................................................ 2 Activated............................................................................................................................ 2 Affiliate.............................................................................................................................. 2 Agreement.......................................................................................................................... 2 ApplicableLaw .................................................................................................................. 2 BasicCable Service ........................................................................................................... 2 CableAct or Act ................................................................................................................ 2 CableService ..................................................................................................................... 2 CableSystem ..................................................................................................................... 3 Channe1 .............................................................................................................................. 3 CityCode ........................................................................................................................... 3 Complaint........................................................................................................................... 3 Connection......................................................................................................................... 3 Converter............................................................................................................................ 3 Day................................................................................................................................ 3 Drop................................................................................................................................ 3 EffectiveDate .................................................................................................................... 3 Electronic Programming Guide or EPG ............................................................................ 3 ExpandedBasic Service ..................................................................................................... 3 Facilityor Facilities ........................................................................................................... 3 FCC................................................................................................................................ 3 Franchise............................................................................................................................ 3 FranchiseArea ................................................................................................................... 4 FranchiseFee ..................................................................................................................... 4 GAAP................................................................................................................................ 4 Grantee............................................................................................................................... 4 Grantor............................................................................................................................... 4 GrossRevenues .................................................................................................................. 4 InteractiveServices ............................................................................................................ 5 JointPowers Agreement .................................................................................................... 5 MemberCity or Member Cities ......................................................................................... 5 Minnesota Cable Communications Act ............................................................................. 5 NormalBusiness Hours ..................................................................................................... 5 Normal Operating Conditions ............................................................................................ 6 Northwest Community Television or NWCT .................................................................... 6 . � � .. .�. : ..._ � � ..:.. i .... �J Northwest Suburbs Cable Communications Commission or NWSCCCor Commission ..................................................................................... 6 PayService ......................................................................................................................... 6 Person................................................................................................................................ 6 Public, Educational or Government Access or PEG Access or PEG Services .................. 6 (a) Public Access ......................................................................................................... 6 (b) Educational Access ................................................................................................ 6 (c) Government Access ............................................................................................... 6 StandardInstallation .......................................................................................................... 6 Street................................................................................................................................7 Subscriberor Subscribers .................................................................................................. 7 WirelineMVPD ................................................................................................................. 7 SECTION2 FRANCHISE ......................................................................................................... 7 2.1 Grant of Franchise .................................................................................................. 7 2.2 Reservation of Authority ........................................................................................ 7 2.3 Franchise Term ...................................................................................................... 8 2.4 Franchise Area ....................................................................................................... 8 2.5 Franchise Nonexclusive ......................................................................................... 8 2.6 Transfer of Ownership ........................................................................................... 8 2.7 Expiration ...............................................................................................................9 2.8 Posting and Publication .......................................................................................... 9 2.9 Right to Require Removal of Property ................................................................ 10 2.10 Continuity of Service Mandatory ......................................................................... 10 SECTION 3 OPERATION IN STREETS AND RIGHTS-OF-WAY ..................................... 10 3.1 Use of Streets ....................................................................................................... 10 3.2 Construction or Alteration ................................................................................... 11 3.3 Non-Interference .................................................................................................. 11 3.4 Consistency with Designated Use ........................................................................ 11 3.5 Undergrounding ................................................................................................... 11 3.6 Maintenance and Restoration ............................................................................... 12 3.7 Work on Private Property .................................................................................... 12 3.8 Relocation ............................................................................................................ 13 SECTION 4 REMOVAL OR ABANDONMENT OF SYSTEM ............................................ 14 4.1 Removal of Cable System .................................................................................... 14 4.1 Abandonment of Cable System ........................................................................... 14 4.3 Removal After Abandonment or Termination ..................................................... 14 4.4 System Construction and Equipment Standards .................................................. 15 7-1-14 1► . � � .. .�. : ..._ � � ..:.. i .... �J 4.5 System Maps and Layout ..................................................................................... 15 SECTION 5 SYSTEM DESIGN AND CAPACITY ............................................................... 15 5.1 Availability of Signals and Equipment ................................................................ 15 5.2 Free Cable Service to Public Buildings ............................................................... 15 5.3 Equal and Uniform Service .................................................................................. 16 5.4 System Specifications .......................................................................................... 16 5.5 Performance Testing ............................................................................................ 17 5.6 Special Testing ..................................................................................................... 17 SECTION 6 PROGRAMMING AND SERVICES ................................................................. 18 6.1 Categories of Programming Service .................................................................... 18 6.2 Changes in Programming Services ...................................................................... 18 6.3 Parental Control Device ....................................................................................... 18 6.4 FCC Reports ......................................................................................................... 18 6.5 Annexation ........................................................................................................... 18 6.6 Line Extension ..................................................................................................... 19 6.7 Non-voice Return Capability ............................................................................... 19 SECTION 7 PUBLIC, EDUCATIONAL AND GOVERNMENTAL ACCESS ..................... 19 7.1 Number of PEG Access Channels ....................................................................... 19 7.2 HD PEG Channel ................................................................................................. 20 7.3 Additional HD Channels ...................................................................................... 20 7.4 Public Access Channel Utilization ....................................................................... 20 7.5 Control of PEG Channels ..................................................................................... 20 7.6 Transmission of Access Channels ....................................................................... 20 7.7 Access Channel Locations ................................................................................... 21 7.8 Navigation to Access Channels ........................................................................... 21 7.9 Ownership of Access Channels ........................................................................... 21 7.10 Noncommercial Use of PEG ................................................................................ 21 7.11 Access Channel Carriage ..................................................................................... 22 7.12 Access Channel Support ...................................................................................... 22 7.13 PEG Technical Quality ........................................................................................ 23 7.14 Change in Technology ......................................................................................... 23 7.15 HD Transition ...................................................................................................... 23 7.16 Video On Demand ............................................................................................... 24 7.17 Electronic Prograinming Guide ........................................................................... 24 7.18 Dedicated Return Lines for PEG ......................................................................... 25 7.19 Future Return Lines for PEG ............................................................................... 25 7-1-14 iii . � � .. .�. : ..._ � � ..:.. i .... �J 7.20 PEG Point of Origination ..................................................................................... 25 7.21 Relocation of Grantee's Headend ........................................................................ 25 7.22 Regional Channel Six .......................................................................................... 25 7.23 Compliance with Minnesota Statutes Chapter 238 .............................................. 25 SECTION 8 REGULATORY PROVISIONS .......................................................................... 25 8.1 Intent .................................................................................................................... 25 8.2 Delegation of Authority to Regulate .................................................................... 25 8.3 Areas of Administrative Authority ...................................................................... 26 8.4 Regulation of Rates and Charges ......................................................................... 26 SECTION9 BOND .................................................................................................................. 27 9.1 Performance Bond ............................................................................................... 27 9.2 Rights ................................................................................................................... 27 9.3 Reduction of Bond Amount ................................................................................. 27 SECTION10 SECURITY FUND .................................................................................. 27 10.1 Security Fund ....................................................................................................... 27 10.2 Withdrawal of Funds ............................................................................................ 28 10.3 Restoration of Funds ............................................................................................ 28 10.4 Liquidated Damages ............................................................................................ 28 10.5 Each Violation a Separate Violation .................................................................... 28 10.6 Maximum One Hundred Twenty (120) Days ......................................................29 10.7 Withdrawal of Funds to Pay Taxes ...................................................................... 29 10.8 Procedure for Draw on Security Fund ................................................................. 29 10.9 Time for Correction of V iolation ......................................................................... 29 10.10 Replenish Security Fund ...................................................................................... 29 10.11 Failure to so Replenish Security Fund ................................................................. 30 10.12 Collection of Funds Not Exclusive Remedy ........................................................ 30 SECTION11 DEFAULT ............................................................................................... 30 11.1 Basis for Default .................................................................................................. 30 11.2 Default Procedure ................................................................................................ 30 11.3 Mediation ............................................................................................................. 31 11.4 Failure to Enforce ................................................................................................ 31 11.5 Compliance with the Laws ................................................................................... 31 SECTION 12 FORECLOSURE AND RECEIVERSHIP .............................................. 32 12.1 Foreclosure ...........................................................................................................32 12.2 Receivership .........................................................................................................32 7-1-14 lv . � � .. .�. : ..._ � � ..:.. i .... �J SECTION 13 REPORTING REQUIREMENTS ........................................................... 32 13.1 Quarterly Reports ................................................................................................. 32 13.2 Monitoring and Compliance Reports ................................................................... 33 13.3 Reports ................................................................................................................. 33 13.4 Communications with Regulatory Agencies ....................................................... 33 SECTION 14 CUSTOMER SERVICE POLICIES ....................................................... 34 14.1 Response to Customers and Cooperation with Grantor ....................................... 34 14.2 Customer Service Agreement and Written Information ...................................... 34 14.3 Reporting Complaints .......................................................................................... 34 14.4 Customer Service Standards ................................................................................ 34 14.5 Local Ofiice ......................................................................................................... 35 14.6 Cable System Office Hours and Telephone Availability ..................................... 35 14.7 Installations, Outages and Service Calls .............................................................. 35 14.8 Communications Between Grantee and Subscribers ........................................... 36 14.9 Billing .................................................................................................................. 36 14.10 Subscriber Information ........................................................................................ 37 14.11 Notice or Rate Programming Change .................................................................. 37 14.12 Subscriber Contracts ............................................................................................ 37 14.13 Refund Policy ....................................................................................................... 37 14.14 Late Fees .............................................................................................................. 38 14.15 Disputes ................................................................................................................38 14.16 Customer Bills ..................................................................................................... 38 14.17 Failure to Resolve Complaints ............................................................................. 38 14.18 Maintain a Complaint Phone Line ....................................................................... 38 14.19 Noti�cation of Complaint Procedure ................................................................... 38 14.20 Subscriber Privacy ............................................................................................... 38 14.21 Grantee Identification .......................................................................................... 39 SECTION 15 SUBSCRIBER PRACTICES .................................................................. 39 15.1 Subscriber Rates ................................................................................................... 39 15.2 Refunds to Subscribers Shall be Made or Determined in the Following Manner................................................................................................................. 39 SECTION 16 COMPENSATION AND FINANCIAL PROVISIONS ......................... 40 16.1 Franchise Fees ...................................................................................................... 40 16.2 Auditing and Financial Records ........................................................................... 40 16.3 Review of Record Keeping Methodology ........................................................... 41 16.4 Audit of Records .................................................................................................. 41 7-1-14 v . � � .. .�. : ..._ � � ..:.. i .... �J 1 C.5 Reco�•ds to be Reviewed .............................................................. ........................ 41 16.6 Indemnification by Gra�ltee ........................................................ ........................ 41 l 6.7 Grantee Insurance ....................................................................... ........................ 42 SECTiON 17 MISCELLAN�OUS PROVISIONS ............................... ........................ 43 17.1 Guarantee of Pei•formance .......................................................... ........................ 43 17.2 Et�tiz•e Agreeme��t ........................................................................ ........................ 43 17.3 Consent ................................................................................................................ 43 l 7.4 Priol• Franchise Terminated .................................................................................. 43 17.5 Effectiveness of F��anchise ................................................................................... 43 17.6 Amendment of F��-ancllise ..................................................................................... 44 17.7 Notice ...................................................................................................................44 17.8 Force Majeure ...................................................................................................... 44 17.9 Work of Contractors and Subcontractors ............................................................. 44 17.10 Duty to Grantee .................................................................................................... 45 17.11 Interest Rate ......................................................................................................... 45 17.12 Administration of Ft'atichise ................................................................................ 45 ] 7.13 General Provision on Rights and Remedies ......................................................... 45 17.14 Abanciontne�lt of System ...................................................................................... 45 17.15 Removal After Abando�la�lent .............................................................................. 46 17.1 C Govel•ning Law .................................................................................................... 46 17.17 Non-enforcement by Gi•ai�tor ............................................................................... 46 l7.l 8 Captio�ls ............................................................................................................... 46 17.19 Calculation of Time ............................................................................................. 46 17.20 Survival of Tei•ms ................................................................................................ 46 17.21 Competitive Equity .............................................................................................. 4C 17.22 Periodic Evaluation ..............................................................................................47 �XHIBIT A FREE CABLE SERVIC� TO PUI3I�tC BUiLDINGS ................ .......................48 �XHIBIT B FR/�NCHISE FEE PAYMENT WORt<SHEET ......................... .......................49 EXHIBiT C CUSTOMER S�RVICE STANDn.RDS ..................................... ....................... 50 EXHIBIT D ACTIVE PEG ORIGINATION SITES ............................................................... 53 7-I-14 vj . � � .. .�. : ..._ � � ..:.. i .... �J ORDINANCE NO. AN ORDINANCE RENEWING THE CABLE TELEVISION FRANCHISE CURRENTLY HELD BY COMCAST OF MINNESOTA/WISCONSIN, INC. ("GRANTEE") TO OPERATE AND MAINTAIN A CABLE COMMUNICATIONS SYSTEM IN THE MEMBER CITIES COMPRISING THE NORTHWEST SUBURBS CABLE COMMUNICATIONS COMMISSION; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE CABLE SYSTEM; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF ITS PROVISIONS. R�CITALS The Northwest Suburbs Cable Communications Commission is the Grantor with the powers, rights and duties of Grantor provided to it pursuant to a Joint Powers Agreement and adopted by each Member City and pursuant to applicable federal and state law. The Agreement was adopted pursuant to Minnesota Statute 238.08 and this Franchise is subject to that Joint Powers Agreement; and, Grantor is authorized by it to grant one (1) or more nonexclusive cable television franchises to construct, operate, maintain and reconstruct cable television systems within the liinits of the Member Cities. Grantor, pursuant to the Joint Powers Agreement and applicable federal and state law, is authorized to grant a Renewal Cable Services Franchise to Comcast of Minnesota/Wisconsin, Inc., a Delaware corporation ("Grantee"). Negotiations between Grantee and the Grantor have been completed and the fi•anchise renewal process followed in accordance with the guidelines established by, Minnesota Statutes Chapter 238 and the federal Cable Act (47 U.S.C. § 546). The Grantor reviewed the legal, technical and financial qualifications of Grantee and, after a properly noticed public hearing, has determined that it is in the best interest of the Grantor and its residents to renew the cable television franchise with Grantee. NOW, THEREFORE, GRANTOR DOES ORDAIN that Grantee's request for renewal of its Franchise and based on review in accordance with the Joint Powers Agreement and applicable federal and state law as required for renewal of Grantee's Cable Service Franchise and after the conduct of public hearings and reviews by Grantor and its Member Cities as cequiced by the Joint Powers Agreement and applicable and federal and state law, Grantor has determined that Grantee's request for renewal may be approved by Grantor and this Franchise is hereby granted to Grantee to operate and maintain a Cable System and provide Cable Services in the Member Cities upon the following terms and conditions: 7-1-14 . � � .. .�. : ..._ � � ..:.. i .... �J 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 words "shall" and "will" are mandatory and "may" is permissive. Words not defined shall be given their common and ordinary meaning. "Access Channels" means any channel or portion of a channel utilized for public, educational or governmental programming (PEG). "Activated" means the status of any capacity or part of the Cable System in which any residential service, institutional service or access resource requiring the use of that capacity or part is made available, in accordance with the Franchise, without further installation, adjustment, modiiication or testing of Cable System equipment to subscribing or potential subscribers within one (1) week of request. "Affiliate" shall mean any Person controlling, controlled by or under common control of Grantee. "Agreement" means the Joint and Cooperative Agreement dated March 31, 1994 re-establishing the Northwest Suburbs Cable Communications Commission. "Applicable Laws" means the Act, and such state and federal laws and rules and Member City ordinances as may govern the construction, operation, and maintenance of a Cable System and not inconsistent with the terms of this Franchise. "Basic Cable Service" means any service tier which includes the lawful retransmission of local television broadcast. "Cable Act" or "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, and as further amended from time to time. "Cable Service" shall mean (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. For the purposes of this definition, "video programming" is programming provided by, or generally considered comparable to programming provided by a television broadcast station; and, "other programming service" is information that a cable operator makes available to all Subscribers generally. 7-1-14 . � � .. .�. : ..._ � � ..:.. i .... �J "Cable System" shall have the meaning specified for "Cable System" in the Act. Unless otherwise specified, it shall in this document refer to the Cable System constructed and operated in the Member Cities under this Franchise. "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. "City Code" means the Municipal Codes of the Member Cities, as may be amended from time to time. "Complaint" For the purposes of Section 14, with the exception of Subsection 14.3, a "Complaint" shall mean any communication to Grantee or to the Grantor by a Subscribec� or a Person who has requested Cable Service; an expression of dissatisfaction with �any service, performance, or lack thereof, by Grantee under the obligations of this Franchise. "Connection" means the attachment of the Drop to the television set of the Subscriber. "Converter" means an electronic device, which converts signals to a frequency not susceptible to interference within the television receiver of a Subscriber, and through the use of an appropriate Channel selector, permits a Subscriber to view all authorized Subscriber signals delivered at designated converter dial locations. "Day" unless otherwise specified shall mean a calendar day. "Drop" shall mean the cable that connects the Subscriber terminal to the nearest feeder cable of the Cable System. "Effective Date" means the date this Franchise becomes effective, in accordance with this Franchise and the rules and procedures of the Grantor as provided for in the Joint Powers Agreement. "Electronic Programming Guide" or "EPG" refers to an interactive channel guide that contains channel programming information. `Bxpanded Basic Service" means the next tier of service above the Basic Cable Service tier excluding premium or pay-per-view services. "Facility" or Facilities" means any tangible component of the Cable System. "FCC" means the Federal Communications Commission, or a designated representative. "Franchise" means the rights and obligations extended by the Grantor to Grantee as provided herein to lease, construct, maintain or operate a Cable System in the Streets and Public Property within the Franchise Area for the purpose of providing Cable Services. This Franchise granted by Grantor to Grantee, shall not mean or include: (i) any other permit or authorization generally required for the privilege of transacting and carrying on a business within the Member 7-1-14 . � � .. .�. : ..._ � � ..:.. i .... �J Cities required by the ordinances and laws of the Member Cities; and (ii) any permit, agreement or authorization generally required in connection with operations on Streets and Public Property including, without limitation, permits and agreements for placing devices on or in poles, conduits or other structures, whether owned by the Member Cities or a private entity, or for excavating or performing other work in or along Streets and Public Property. "Franchise Area" means the entire geographic area within the Member Cities as it is now constituted or may in the future be constituted. "Franchise Fee" shall mean the fee assessed by the Grantor to Grantee, in consideration of Grantee's right to operate the Cable System within the Grantor Member City Streets and rights of way, determined in amount as a percentage of Grantee's Gross Revenues and limited to the maximuin 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). "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"). Notwithstanding the foregoing, the Grantor reserves its right to challenge Grantee's calculation of Gross Revenues, including the use or interpretation of GAAP as promulgated and defined by the FASB, EITF and/or the SEC. "Grantee" means Comcast of Minnesota/Wisconsin, Inc., its agents, employees, lawful successors, transferees or assignees. "Grantor" means the Northwest Suburbs Cable Communications Commission, a joint powers entity created pursuant to a Joint Powers Agreement authorized under the provisions of Minnesota Statute 471.59 and 238.08 by the Member Cities and thereby having all the rights, duties, and responsibilities on behalf of such Member Cities as the Grantor of a Cable Service Franchise to the extent as provided for in the Joint Powers Agreement. "Gross Revenues" means any and all compensation in whatever form, from any source, directly or indirectly earned by Grantee or any Affiliate of Grantee or any other Person who would constitute a cable operator of the Cable System under the Cable Act, derived from the operation of the Cable System to provide Cable Service within the Member Cities. Gross Revenues include, by way of illustration and not limitation, monthly fees charged Subscribers for Cable Services including Basic Cable Service, any expanded tiers of Cable Service, optional premium or digital services; pay-per-view services; Pay Services, installation, disconnection, reconnection and change-in-service fees, Leased Access Channel fees, all Cable Service lease payments from the Cable System to provide Cable Services in the Member Cities , late fees and administrative fees, payments or other consideration received by Grantee from programmers for carriage of programming on the Cable System and accounted for as revenue under GAAP; revenues from rentals or sales of Converters or other Cable System equipment; advertising sales revenues booked in accordance with Applicable Law and GAAP; revenues from program guides and electronic guides, additional outlet fees, Franchise Fees required by this Franchise, revenue from Interactive Services to the extent they are considered Cable Services under Applicable Law; revenue from the sale or carriage of other Cable Services, revenues from home shopping 7-1-14 4 . � � .. .�. : ..._ � � ..:.. i .... �J and other revenue-sharing arrangements. Grantee agrees that Gross Revenues shall include all commissions paid to the National Cable Communications and Comcast Spotlight or their successors associated with sales of advertising on the Cable System within the Member Cities allocated according to this paragraph using total Cable Service Subscribers reached by the advertising. Copyright fees or other license fees paid by Grantee shall not be subtracted from Gross Revenues for purposes of calculating Franchise Fees. Gross Revenues shall include revenue received by any entity other than Grantee where necessary to prevent evasion or avoidance of the obligation under this Franchise to pay the Franchise Fees. Gross Revenues shall not include any taxes on services furnished by Grantee, which taxes are imposed directly on a Subscriber or user by a city, county, state or other governmental unit, and collected by Grantee for such entity. The Franchise fee is not such a tax. Gross revenues shall not include amounts which cannot be collected by Grantee and are identified as bad debt; provided that if amounts previously representing bad debt are collected, then those amounts shall be included in Gross Revenues for the period in which they are collected. Gross Revenues shall not include payments for PEG Access capital support. The Grantor acknowledges and accepts that Grantee shall maintain its books and records in accordance with GAAP. "Interactive Services" are those services provided to Subscribers whereby the Subscriber either (a) both receives information consisting of either television or other signal and transmits signals generated by the Subscriber or equipment under his/her control for the purpose of selecting what information shall be transmitted to the Subscriber or for any other purpose; or (b) transmits signals to any other location for any purpose. "Joint Powers Agreement" means a Joint and Cooperative Agreement entered into pursuant to the provisions of Minnesota Statutes Sections 471.59 and 238.08, dated March 31, 1994 between the Member Cities, delegating authority to Grantor Cable service franchise authority on behalf of the Member Cities in accordance with the provisions of the Agreement. "Member City" or "Member Cities" means the Cities of Brooklyn Center, Brooklyn Park, Crystal, Golden Valley, Maple Grove, New Hope, Osseo, Plymouth and Robbinsdale, Minnesota, which are Members of Grantor pursuant to the Agreement. Upon withdrawal from Grantor, any former Member may become a Grantor pursuant to this Franchise and subject to the applicable withdrawal provisions of the Agreement. The Franchise may then be administered separately by that Member City as to its territorial boundaries, except that in no event should Grantee's cumulative Franchise burden be increased thereby. "Minnesota Cable Communications Act" means the provisions of Minnesota law governing the requirements for a cable television franchise as set forth in Minn. Stat. § 238, et. seq., as amended. "Normal Business Hours" means those hours during which most similar businesses in Member Cities 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. 7-1-14 5 . � � .. .�. : ..._ � � ..:.. i .... �J "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. "Northwest Community Television" or "NWCT" means Northwest Community Television, its assignees or delegees, or any other entity designated by the Grantor whose duties shall include the �nancing, management, and programming of the PEG Access and Local Origination Programming Channels, and whatever other duties with respect to PEG Access and Local Origination Programming Channels which the Grantor from time to time shall delegate. "Northwest Suburbs Cable Communications Commission" or "NWSCCC" or "Commission" means the Joint Powers Commission established by the Member Cities. "Pay Service" means programming (such as certain on-demand movie channels or pay-per-view programs) offered individually to Subscribers on a per-channel, per-program or per-event basis. "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. "Public, Educational or Government Access" or "PEG Access" or "PEG Services" means the availability for use of the Cable System in accordance with this Franchise by various agencies, institutions, organizations, groups and individuals in the community to acc�uire, create, and distribute Programming not intended to generate income which may be subject to federal, state, or local income taxes and not under the Grantee's editorial control, including, but not limited to: (a) "Public Access" means Programming where organizations, groups or individual members of the general public, on a nondiscriminatory basis, are the primary or designated programmers or users having editorial control over their Programming. (b) "Educational Access" means Programming where educational institutions are the primary or designated programmers or users having editorial control over their Programming. (c) "Government Access" means Access where governmental institutions are the primary or designated programmers or users having editorial control over their Programming. "Standard Installation" means any residential installation which can be completed using a Drop of one hundred twenty five (125) feet or less. 7-1-14 . � � .. .�. : ..._ � � ..:.. i .... �J "Street" shall mean the surface of and the space above and below any public Street, road, highway, freeway, lane, path, public way, alley, court, sidewalk, boulevard, parkway, drive or any easement or right-of-way now or hereafter held by the Member Cities which shall, within its proper use and meaning in the sole opinion of Member Cities, entitle Grantee to the use thereof for the purpose of installing or transmitting over poles, wires, cables, conductors, ducts, conduits, vaults, man-holes, amplifiers, appliances, attachments and other property as may be ordinarily necessary and pertinent to a Cable System. "Subscriber" or "Subscribers" means any Person who or which lawfully subscribes to a Cable Service provided by Grantee by means of or in connection with the Cable System. "Wireline MVPD" means a multichannel video programming distributor that utilizes the Streets to install cable or fiber and is engaged in the business of making available for purchase, by Subscribers, multiple Channels of video programming in the Grantor. SECTION 2 FRANCHISE 2.1 Grant of Franchise. The Grantor hereby authorizes Grantee to occupy or use the Member Cities' Streets subject to: (1) the provisions of this Ordinance, a non-exclusive Franchise, to provide Cable Service within the Member Cities; and (2) all applicable provisions of a Member City Code. This Franchise shall constitute both a right and an obligation to provide Cable Services as reauired 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 Grantor or Member Cities' legislative or regulatory authority in an appropriate forum. The Grantor 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 Member City Codes and other applicable regulations of the Member Cities. Subject to the police power exception below, in the event of a conflict between (a) the lawful provisions of a City Code or applicable regulations of the Member Cites 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 Member Cities through subsequent amendments to the City Code, ordinances or any regulation of Member Cities, except in the lawful exercise of the Member Cities' police power. Grantee acknowledges that the Member City may modify its regulatory policies by lawful exercise of their 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 Member Cities reserves all rights and defenses to such challenges whether arising in contract or at law. Nothing in this Franchise shall (a) abrogate the right of the Member Cities to perform any public works or public improvements of any description; (b) be construed as a waiver of any 7-1-14 7 . � � .. .�. : ..._ � � ..:.. i .... �J codes or ordinances of general applicability promulgated by the Member Cities; or (c) be construed as a waiver or release of the rights of the Member Cities in and to the Streets. 2.3 Franchise Term. The term of the Franchise shall be ten (10) years from the Effective Date, unless extended by mutual written consent in accordance with Section 17.6 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 Member Cities in accordance with Section 6.6 herein. This Franchise governs any Cable Services provided by Grantee to residential and commercial Subscribers to Grantee's Cable System. 2.5 Franchise Nonexclusive. The Franchise granted herein shall be nonexclusive. The Grantor 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 17.21. The grant of any additional franchise shall not of itself be deemed to constitute a modifcation, revocation, or termination of rights previously granted to Grantee. Any additional cable franchise grants shall comply with Minn. Stat. Section 238.08 and any other applicable federal level playing field requirements. 2.6 Transfer of Ownership. (a) No sale, transfer, assignment or "fundamental corporate change," as defned in Minn. Stat. § 238.083, of this Franchise shall take place until the parties to the sale, transfer, or fundamental corporate change files a written request with Grantor for its 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. (b) Grantor shall have thirty (30) Days from the time of the request to reply in writing and indicate approval of the request or its determination that a public hearing is necessary due to potential adverse effect on Grantee's Subscribers resulting from the sale or transfer. Such approval or determination shall be expressed in writing within thirty (30) Days of receipt of said request, or the request shall be deemed approved as a matter of law. (c) If a public hearing is deemed necessary pursuant to (b) above, such hearing shall be commenced within thirty (30) Days of such determination and notice of any such hearing shall be given in accordance with local law or fourteen (14) Days prior to the hearing by publishing notice thereof once in a newspaper of general circulation in the Member Cities . The notice shall contain the date, time and place of the hearing and shall briefly state the substance of the action to be considered by Grantor. (d) Within thirty (30) Days after the closing of the public hearing, Grantor shall approve or deny in writing the sale or transfer request. Grantor shall set forth in writing with particularity its reason(s) for denying approval. Grantor shall not unreasonably withhold its approval. 7-1-14 g . � � .. .�. : ..._ � � ..:.. i .... �J (e) The parties to the sale or transfer of the Franchise only, without the inclusion of the System in which substantial construction has commenced, shall establish that the sale or transfer of only the Franchise will be in the public interest. (� 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 2.6. The term "controlling interest" as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. (g) 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 Grantor. (h) In the event of any proposed sale or assignment pursuant to paragraph (a) of this Section, Grantor shall have the right of first refusal of any bona fide offer to purchase the Cable System. Bona fide offer, as used in this Section, means an offer received by the Grantee which it intends to accept subject to Grantor's rights under this Section. This written offer must be conveyed to Grantor along with the Grantee's written acceptance of the offer contingent upon the rights of Grantor provided for in this Section. Grantor shall be deemed to have waived its rights under this paragraph (h) in the following circumstances: (i) If it does not indicate to Grantee in writing, within thirty (30) Days of notice of a proposed sale or assignment, its intention to exercise its right of purchase; or (ii) It approves the assignment or sale of the Franchise as provided within this Section. 2.7 Expiration. Upon expiration of the Franchise, the Grantor 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 Grantor deems appropriate. 2.8 Posting and Publication. All public notices or ordinances required to be published by Grantor or Member Cities, including this Franchise or the title thereof, shall be published in the official newspaper of all Member Cities. Grantee shall pay the costs for 7-I-14 9 . � � .. .�. : ..._ � � ..:.. i .... �J publication of this Franchise and amendments to it, as such publication is required or authorized by law. 2.9 Right to Require Removal of Property. At the expiration of the term for which the Franchise is granted provided no renewal is granted, or upon its forfeiture or revocation as provided for herein, the Grantor 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 Grantor may perform the work and collect the cost thereof from Grantee. 2.10 Continuity of Service Mandatory. It shall be the right of all Subscribers to receive all available services insofar as their financial and other obligations to Grantee are honored. In the event that Grantee elects to overbuild, rebuild, modify, or sell the system, or the Grantor 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, during the lifetime of the Franchise. In the event of expiration, 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 agreement 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, erect, install, construct, repair, replace, reconstruct and retain in, on, over, under, upon, across and along the Streets within the Member Cities such lines, cables, conductors, ducts, conduits, vaults, manholes, ampli�iers, appliances, pedestals, attachments and other property and equipment as are necessary and appurtenant to the operation of a Cable System within the Member Cities. 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, 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 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 inaintained as not to endanger or unnecessarily interfere with the usual and customary trade, trafiic and travel upon, or other use of, the Streets of Member Cities. 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 Member Cities. 7-1-14 10 . � � .. .�. : ..._ � � ..:.. i .... �J (c) All wires, conduits, cables and other property and Facilities of Grantee, shall be constructed and installed in an orderly and workmanlike manner. 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. 3.2 Construction or Alteration. Grantee shall in all cases comply with the City Code, Member City resolutions and Member 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 Grantor 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 Member 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. Grantee shall place underground all of its transmission lines which are located or are to be located above or within the Streets of the Member Cities in the following cases: (a) All other existing utilities are required to be placed underground by statute, resolution, policy or other Applicable Law; (b) Grantee is unable to get pole clearance; (c) Underground easements are obtained from developers of new residential areas; or (d) Utilities are overhead but residents prefer underground (service provided at cost). 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. Nothing herein shall mandate that Member City provide reimbursement to Grantee for the costs of such relocation and removal. However, if a Member City provides any reimbursement to other right-of-way users or 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 7-1-14 11 . � � .. .�. : ..._ � � ..:.. i .... �J the source of funding is from a third party for a specific utility; a Member City is not obligated to provide similar funding for these purposes to other utilities including Grantee. 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) 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 Applicable Law, 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, then the Member City may do such work or cause it to be done, and the cost thereof to the Member City shall be paid by Grantee. If Grantee causes any damage to private property in the process of restoring Facilities, Grantee shall repair such damage. (b) Grantee shall maintain all above ground improvements that it places on Member City Streets pursuant to the City Code and any permit issued by the Member City. In order to avoid interference with the Member 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) In any dispute over the adequacy of restoration or maintenance relative to this section, final determination shall be the prerogative of the Member City, Department of Public Works and consistent with the City Code and any permit issued by the Member 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 Member City, such trimming may be done by it or under its supervision and direction at the reasonable expense of Grantee. 7-1-14 12 . � � .. .�. : ..._ � � ..:.. i .... �J 3.8 Relocation. (a) Member City Property. If, during the term of the Franchise, the Member 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, public way 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. Nothing herein shall mandate that Member City provide reimbursement to Grantee for the costs of such relocation and removal. However, if the Member City provides any reimbursement to other right-of-way users or 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 the source of funding is from a third party for a specific utility; a Member City is not obligated to provide similar funding for these purposes to other utilities including Grantee. (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, 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, provided that 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 Member 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 to Grantee 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 Member City may do such work or cause it to be done, and the cost thereof to the Member 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. 7-1-14 13 . � � .. .�. : ..._ � � ..:.. i .... �J (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 Member City based upon a determination, in the sole discretion of the Member 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 Member City (� Movement of Buildings. Grantee shall, upon request by any Person holding a building moving permit, franchise or other approval issued by the Member 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 Member City shall require all building movers to provide not less than fifteen (15) Days' notice to the cable company to arrange for such temporary wire changes. SECTION 4 REMOVAL OR ABANDONMENT OF SYSTEM 4.1 Removal of Cable System. In the event that: (1) 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, Grantee, at its expense shall, at the demand of the Member City remove promptly from the Streets all of the Cable System other than any which the Member City may permit to be abandoned in place. In the event of any such removal Grantee shall promptly restore to a condition as nearly as possible to its prior condition the Street or other public places in the Member City from which the System has been removed. 4.2 Abandonment of Cable System. In the event of Grantee's abandonment of the Cable System, Member City shall have the right to require Grantee to conform to 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 Member City. Grantee may not abandon any portion of the System without having first given three (3) months written notice to the Member City. Grantee may not abandon any portion of the System without compensating the Member 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 Member City, within thirty (30) Days after written notice of Member 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 Member City's demand for removal is given, Member City shall have the right to apply funds secured by the Letter of Credit and Performance Bond toward �-�-14 14 . � � .. .�. : ..._ � � ..:.. i .... �J removal and/or declare all right, title, and interest to the Cable System to be in Member 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 System Construction and Equipment Standards. The Cable System shall be installed and maintained in accordance with standard good engineering practices and shall conform, when applicable, with the National Electrical Safety Code, the National Electrical Code and the FCC's Rules and Regulations. 4.5 System Maps and Layout. 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 Grantor personnel, subject to Grantee's reasonable security precautions. SECTION 5 SYSTEM DESIGN AND CAPACITY 5.1 Availability of Signals and Equipment. (a) Prior to the Effective Date of this Franchise, Grantee upgraded its Cable System to a Fiber to the Fiber node Cable System architecture, with Fiber Optic cable deployed from Grantee's Headend to Grantee's Fiber nodes, tying into Grantee's coaxial Cable System already serving Subscribers. Active and passive devices currently are passing a minimum of 750 MHz (with a minimum passband of between 50 and 750 MHz) providing to Subscribers at least two hundred (200) or more activated minimum Downstream video Channels and minimum Activated Upstream digital Channel Capacity of 35 MHz accessible from any node and any Subscriber in the Franchise Area. This upstream capacity requires no additional installation of equipment for use except on users' premises. (b) The entire System shall be technically capable of transmitting NTSC analog, compressed digital and HDTV transmissions. The Grantee shall comply with all FCC regulations regarding carriage of digital and HDTV transmissions. (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 the requirements of this Franchise, including the Exhibits hereto, and in a manner which meets or exceeds FCC relevant technical quality standards at 47 C.F.R. § 76 Subpart K, as appropriate, regardless of the particular format in which a Signal is transmitted. 5.2 Free Cable Service to Public Buildings. (a) Throughout the term of this Franchise Grantee shall provide, free of charge one (1) service Drop, up to three (3) Converters, if necessary and requested, and Basic Cable Service and the next highest level of Service generally available to all 7-1-14 15 Subscribers (as of the Effective Date referred to as ("Complimentary Service"), to all of the sites listed o addition, any Member City's public building constru Franchise, but not to include any public office that ma building, unless otherwise approved by the Grantee. . � � .. .�. : ..._ � � ..:.. i .... �J Expanded Basic Cable Service) n Exhibit A attached hereto. In cted after effective date of this y be located in a privately-owned (b) If the Drop line to such building exceeds three hundred fifty (350) feet, Grantee will accommodate the Drop up to three hundred fifty (350) feet if the Member City or other agency provides the necessary attachment point for aerial service or conduit pathway for underground service. If the necessary pathway is not provided, the Member City or other agency agrees to pay the incremental cost of such Drop in excess of two hundred (200) feet for an aerial service Drop, or in excess of one hundred twenty-five (125) feet for an underground service Drop. For purposes of this paragraph, "incremental cost" means Grantee's actual cost to provide the drop beyond the applicable distances, with no mark-up for profit. The recipient of the service will secure any necessary right of entry. (c) The Member City or the building occupant shall have the right to extend Cable Service throughout the building to additional outlets without any fees imposed by Grantee for the provision of Complimentary Service to such additional outlets. If ancillary eauipment, such as a Converter, is required to receive the signal at additional outlets, Grantee will provide up to three devices at no charge, and will provide additional devices at Grantee's lowest residential rate charged within the Twin Cities metropolitan area. (d) Notwithstanding anything to the contrary set forth in this section, Grantee shall not be required to provide Complimentary Service to such buildings unless it is technically feasible. Outlets and maintenance of said Complimentary Service shall be provided free of fees and charges. 5.3 Equal and Uniform Service. To the extent required by Applicable Law, Grantee shall provide access to equal and uniform Cable Service throughout the Member Cities. 5.4 System Specifications. (a) System Maintenance. In all its construction and service provision activities, Grantee shall meet or exceed the construction, technical performance, extension and service requirements set forth in this Franchise. Franchise) Grantee shall provide and maintain an Emergency Alert System (EAS) consistent with applicable Federal law and regulations including 47 C.F.R., Part 11, and any Minnesota State Emergency Alert System requirements. Emergency Alert Capability. At all times during the term of this (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 at least at two (2) hours' duration, throughout the trunk and distribution networks. In addition, Grantee shall have in place throughout the Franchise 7-1-t4 16 . � � .. .�. : ..._ � � ..:.. i .... �J 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 modifed from time to time, which regulations are expressly incorporated herein by reference. The Cable System shall be installed and maintained in accordance with standard good engineering practices and shall conform with relevant provisions of the National Electrical Safety Code, the National Electrical Code and all other Applicable Laws governing the construction of the Cable System. 5.5 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 shall include, at a minimum: (a) Initial proof of performance for any construction; (b) Semi-annual compliance tests; (c) Tests in response to Subscriber complaints; (d) Tests requested by the Grantor to demonstrate franchise compliance; (e) Written records of all system test results performed by or for Grantee shall be maintained, and shall be available for Grantor inspection upon request. 5.6 Special Testing. (a) Throughout the term of this Franchise, Grantor shall have the right to inspect all construction or installation work performed pursuant to the provisions of the Franchise. In addition, Grantor 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 oi• unresolved complaints. Grantor shall endeavor to so arrange its request for such special testing so as to minimize hardship or inconvenience to Grantee or to the Subscribers caused by such testing. (b) Before ordering such tests, Grantee shall be afforded thirty (30) Days following receipt of written notice to investigate and, if necessary, correct problems or complaints upon which tests were ordered. Grantor shall meet with Grantee prior to requiring special tests to discuss the need for such and, if possible, visually inspect those locations which are the focus of concern. If, after such meetings and inspections, Grantor 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 7-1-14 17 . � � .. .�. : ..._ � � ..:.. i .... �J conducted at Grantee's expense by Grantee's qualified engineer. The Grantor shall have a right to participate in such testing by having an engineer of Grantor's choosing, and at Grantor'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: Local Broadcast (subject to federal carriage requirements) Public Broadcast News and Information Sports General Entertainment Arts/Performance/Humanities Science/Technology Children Foreign Language or Ethnic Programming Public, Educational and Governmental Access Programming (to the extent required by the Franchise) Movies Leased Access (subject to federal requirements) 6.2 Changes in Programming Services. Grantee shall not delete or so limit as to effectively delete any broad category of programming within its control without the Grantor's consent. Further, Grantee shall provide at least thirty (30) Days' prior written notice to Subscribers and to the Grantor 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. Upon request by any Subscriber, Grantee shall make available for sale or lease a parental control or lockout device 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 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 Grantor within ten (10) Days of the conduct of the date of the tests and maintained as provided for in Section 5.5(e). 6.5 Annexation. Unless otherwise provided by Applicable Law, upon the annexation of any additional land area by Member Cities, 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 Member City. Unless otherwise required by Applicable Laws, nothing herein shall require the Grantee to expand its Cable System to serve, or to offer Service to any area annexed by the 7-1-14 1 g . � � .. .�. : ..._ � � ..:.. i .... �J Member City if such area is then served by another Wireline MVPD franchised to provide multichannel video programming. 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 ec�uivalent 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 Member Cities, for their part, shall require developers and utility companies to provide the Grantee with at least fifteen (15) Days advance notice of an available open trench for the placement of necessary cable. (b) Where the density is less than that specified above, Grantee shall inform Persons requesting service of the possibility of paying for installation or a line extension and shall offer to provide them with a free written estimate of the cost, which shall be provided within ffteen (15) working Days of such a request. Grantee may offer the Persons requesting Service the opportunity to "prepay" some or all of the necessary line extensions according to its regular business policies. Grantee shall at all times implement such ]ine extension policy in a nondiscriminatory manner throughout the Member Cities. (c) Any residential unit located within one-hundred twenty-iive (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, upon request by any potential Subscriber residing in Member Cities beyond the one hundred twenty-five (125) foot limit, extend service to such Subscriber provided that the Subscriber shall pay the net additional Drop costs, 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 Member Cities. 6.7 Non-voice Return Capability. Grantee is required to use cable and associated electronics having the technical capacity for non-voice return communications. SECTION 7 PUBLIC, EDUCATIONAL AND GOVERNMENTAL ACCESS 7.1 Number of PEG Access Channels. Grantee will maintain eight (8) PEG Access Channels in Standard Definition for the first twelve (12) months of the Franchise term. Twelve (12) months after the Effective Date of the Franchise, the Grantor shall be entitled to four (4) PEG Access Channels. Grantee shall provide the Access Channels in a standard digital format and on the most basic tier of service offered by Grantee in accordance with the Cable Act, Section 611, and as further set forth in this Section 7. �-t-14 1 9 . � � .. .�. : ..._ � � ..:.. i .... �J 7.2 HD PEG Channel. Twelve (12) months after the Effective Date of the Franchise, and at such time as Grantee make available four (4) SD channels in Standard Deiinition, Grantee shall make one (1) additional PEG Access Channel available in high definition (HD) format, provided that at least eighty percent (80%) of the content on the channel is in HD format, and not more than five percent (5%) of the content is character generated progcamming. (a) The Grantor acknowledges that receipt of an HD format Access Channel may require Subscribers to buy or lease special equipment, or pay additional HD charges applicable to all HD services. Grantee shall not be required to provide free equipment or modify its pricing policies in any manner. (b) Any costs associated with the delivery of SD PEG channels in HD format, including transmission equipment (HD modulators and demodulators, encoder and decoder equipment, multiplex equipment, and necessary upgrades to video return lines) shall be borne by the Grantor, and may be paid for out of PEG funds. (c) The Grantor is responsible for acquiring all equipment necessary to produce programming in HD. (d) Grantee shall have the right to use any technology to deploy or deliver HD signals (including selection of compression, utilization of IP and other processing characteristics) so long as it produces signal quality for the consumer that is reasonably comparable (from the viewer's standpoint) and functionally equivalent to similar commercial HD signals carried on the cable system. 7.3 Additional HD Channels. No sooner than Thirty-Six (36) months after the Effective Date, and with at least a one hundred twenty (120) Day written notice to Grantee, the Grantor may request a second additional HD PEG Access Channel in HD format in exchange for two (2) of the four (4) PEG Access Channels and one (1) local origination SD channel. 7.4 Public Access Channel Utilization. It is the intent of the Grantor to program the Public Access Channels with ninety percent (90%) video programming content and minimize repeat programming whenever possible and that budgets allow. Grantor agrees that programming a Public Access Channel using primarily full page character generated content is not the best use for a Public Access Channel. Grantee may request to make use of a Public Access Channel that is primarily being used for full page character generated content unless the character generator is being used for emergency or technical reasons, and Grantor may not unreasonably deny such request. 7.5 Control of PEG Channels. The control and administration of the Access Channels shall rest with the Grantor and the Grantor may delegate, from time to time over the term of this Franchise, such control and administration to various entities as determined in Grantor's sole discretion. 7.6 Transmission of Access Channels. Access Channels may be used for transmission of non-video signals associated with the transmission of video signals in compliance with Applicable Laws. This may include downstream transmission of data using a 7-1-14 2� . � � .. .�. : ..._ � � ..:.. i .... �J protocol such as TCP/IP or current industry standards. Should Grantee develop the capability to provide bi-directional data transmission, spectrum capacity shall be suffcient to allow Subscribers to transmit data to PEG Facilities. 7.7 Access Channel Locations. (a) Access Channels shall be carried on the Basic Cable Service tier to the extent required by Applicable Law and as set forth in Section 7.1 herein. Nothing herein precludes the Grantee from charging for equipment needed for Basic Cable Service. (b) Grantee shall make reasonable efforts to minimize channel movements for SD and HD PEG channels, and shall make reasonable efforts to locate HD access channels in its HD lineup in a manner that is easily accessible to subscribers. (c) Grantee shall provide Grantor a minimum of sixty (60) Days' notice, and use best efforts to provide one hundred and twenty (120) Days' notice, and prior to the time PEG access designations are changed. In addition, Grantee shall pay to Grantor an amount equal to Grantor's actual costs in remarketing the location of Access Channels and managing relocation administratively and technologically, up to a maximum of Five Thousand Dollars ($5,000.00) per SD Access Channel. Any such amounts paid by Grantee may be added, at Grantee's discretion, to the price of Cable Services and collected from Subscribers. Grantee, at Grantee's expense, will place Grantor's notices of the Channel change on its regular monthly billings, upon Grantor's request. (d) Grantee agrees not to encrypt the Access Channels differently than other commercial Channels available on the Cable System. 7.8 Navigation to Access Channels. Grantee agrees that if it utilizes a visual interface under its control on its Cable System for all Channels, the Access Channels shall be treated in a non-discriminatory fashion consistent with Applicable Laws so that Subscribers will have ready access to Access Channels. This shall not be construed to require Grantee to pay any third party fees that may result from this obligation. 7.9 Ownership of Access 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, educational or governmental 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, educational, or governmental 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. 7.10 Noncommercial Use of PEG. Permitted noncommercial uses of the Access Channels shall include by way of example and not limitation: (1) the identification of financial supporters similar to what is provided on public broadcasting stations; (2) the solicitation of �nancial support for the provision of PEG programming by the Grantor or third party users for charitable, educational or governmental purposes; or (3) programming offered by accredited, non-profit, educational institutions which may, for example, offer telecourses over a Access Channel. 7-1-14 21 . � � .. .�. : ..._ � � ..:.. i .... �J 7.11 Access Channel Carriage. (a) Any and all costs associated with any modification of the Access Channels or signals after the Access Channels/signals leave the Grantor's designated playback Facilities, or any designated playback center authorized by the Grantor shall be borne enticely by Grantee. Grantee shall not cause any programming to override PEG programming on any Access Channel, except by oral or written permission from the Grantor, with the exception of emergency alert signals. (b) The Grantor may request and Grantee shall provide an additional Access Channel when the cumulative time on all the existing Access Channels combined meets the following standard: whenever one of the Access Channels in use during eighty percent (80%) of the weekdays, Monday through Friday, for eighty percent (80%) of the time during a consecutive three (3) hour period for six (6) weeks running, and there is a demand for use of an additional Channel for the same purpose, the Grantee has six (6) months in which to provide a new, Access Channel for the same purpose; provided that, the provision of the additional Channel or Channels does not require the Cable System to install converters. (c) The VHF spectrum shall be used for one (1) of the public, educational, or governmental specially designated Access Channels. (d) The Grantor or its designee shall be responsible for developing, implementing, interpreting and enforcing rules for PEG Access Channel use. (e) The Grantee shall monitor the Access Channels for technical quality to ensure that they meet FCC technical standards including those applicable to the carriage of Access Channels, provided however, that the Grantee is not responsible for the production quality of PEG programming productions. The Grantor, or its designee, shall be responsible for the production and quality of all PEG access programming. Grantee shall carry all components of the standard definition of Access Channel including, but not limited to, closed captioning, stereo audio and other elements associated with the programming. 7.12 Access Channel Support. (a) Upon the Effective Date of this Franchise, Grantee shall collect and remit to the Grantor one dollar and thirty-six cents ($1.36) per Subscriber per month in support of PEG capital ("PEG Fee"). (b) Within ninety (90) Days of the Effective Date of this Franchise, Grantee shall provide Two Hundred Thousand Dollars ($200,000.00) grant in support of PEG capital purposes ("PEG Grant"). Grantee retains all legal authority it may possess to recover the PEG Grant from Subscribers in any manner permitted by Applicable Law. (c) Neither the PEG Grant nor the PEG Fee are intended to represent part of the Franchise Fee and are intended to fall within one or more of the exceptions in 47 U.S.C. § 542. The PEG Grant and PEG Fee may be categorized, itemized, and passed 7-1-14 22 . � � .. .�. : ..._ � � ..:.. i .... �J through to Subscribers as permissible, in accordance with 47 U.S.C. § 542 or other Applicable Laws. Grantee shall pay the PEG Fee to the Grantor quarterly at the same time as the payment of Franchise Fees under Section 16.1 of this Franchise. Grantee agrees that it will not offset or reduce its payment of past, present or future Franchise Fees required as a result of its obligation to remit the PEG Funds or the PEG Fee, provided such funds or fees are used for capital purposes consistent with this Section. (d) Any PEG Access capital support amounts owing pursuant to this Franchise which remain unpaid more than twenty-five (25) Days after the date the payment is due shall be delinquent and shall thereafter accrue interest at twelve percent (12%) per annum or the prime lending rate published by the Wall Street Journal on the Day the payment was due plus two percent (2%), whichever is greater. 7.13 PEG Technical Quality. (a) Grantee shall not be required to carry a PEG Access 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 Access Channels that results in a material degradation of signal quality or impairment of viewer reception of Access Channels, provided that this requirement shall not prohibit Grantee from implementing new technologies that may also utilized for commercial Channels carried on its Cable System. Grantee shall meet FCC signal quality standards when offering Access Channels on its Cable System and shall continue to comply with closed captioning pass-through requirements. There shall be no significant deterioration in an Access Channels signal from the point of origination upstream to the point of reception downstream on the Cable System. (b) Within twenty-four (24) hours of a written request from Grantor to the Grantee identifying a technical problem with a Access Channel and requesting assistance, Grantee will provide technical assistance or diagnostic services to determine whether or not a problem with a PEG signal is the result of matters for which Grantee is responsible and if so, Grantee will take prompt corrective action. If the problem persists and there is a dispute about the cause, then the parties shall meet with engineering representation from Grantee and the Grantor in order to determine the course of action to remedy the problem. 7.14 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 Grantor to obtain new equipment in order to be compatible with such change for purposes of transport and delivery of the Access Channels, Grantee shall, at its own expense and free of charge to Grantor or its designated entities, purchase such equipment as may be necessary to facilitate the cablecasting of the Access Channels in accordance with the requirements of the Franchise. 7.15 HD Transition. In the event that Grantee carries the non-PEG channels on its Basic Cable Service tier in HD-only, and eliminates all standard definition channels, Grantee will convert all SD PEG Access Channels to HD transmission and eliminate all SD PEG Access 7-1-14 23 . � � .. .�. : ..._ � � ..:.. i .... �J Channels. Nothing will require Grantee to carry a discrete PEG Access Channel on more than one location on the channel lineup. 7.16 Video On Demand. Within sixty (60) Days of the Effective Date, Grantee will provide five (5) hours of standard definition ("SD") video on demand ("VOD") for use by the Grantor to cablecast PEG programming. Grantor shall have the sole discretion to select the content of such PEG or Local Origination VOD programming and shall hold Grantee harmless from any and all demands, actions, causes of action, suits, judgments, controversies, damages, complaints and any and all claims and liabilities relating to or arising out of the Grantor's choice of content for the PEG or Local Origination VOD programming. This notwithstanding, PEG or Local Origination VOD will be governed by Grantee's regular, non-discriminatory terms and conditions (e.g., duration individual programs remain on the VOD platform, etc.) applicable to VOD programming. (a) Grantor shall be responsible for acquiring, at its cost, all equipment necessary to produce and deliver the PEG or Local Origination VOD Programming in the format required foc Grantee's VOD servers, including the cost of any necessary return line upgrades, and the transmission equipment needed to transmit it to Grantee in the format required. (b) Up to two (2) additional hours may be requested by Grantee each time the then current level of PEG or Local Origination programming has been viewed at least seven hundred fifty (750) times by customers eligible to view VOD programming each month over six (6) consecutive months, provided each view must be at least one-half (1/2) of the length of the program or as otherwise required by Grantee but in no event shall the length of the view of each program be required to exceed one-half (1/2) of the length of the program. For the purpose of this Agreement "customers eligible to view VOD programming" means customers who subscribe for cable service that includes VOD programming. (c) After one (1) year from the date the Grantee places VOD programming on Grantor's VOD platform, if viewership of Grantee's VOD programming over a six (6) month period falls to five hundred (500) or fewer customers eligible to view VOD programming, Grantor may reclaim all but two (2) VOD hours within thirty (30) Days of written notice to Grantee. Following such reclamation, Grantee may not request return of the capacity for a two (2) year period. 7.17 Electronic Programming Guide. Within sixty (60) Days of the Effective Date, Grantee will make available to Grantor the ability to place PEG channel programming information on the interactive channel guide by putting Grantor in contact with the electronic programing guide (`BPG") vendor (`BPG provider") that provides the guide service. Grantee will be responsible for providing the designations and instructions necessary for the PEG Access Channels to appear on the EPG. All costs and operational requirements of the EPG provider shall be the responsibility of the Grantee. Grantor acknowledges that the EPG is not technically possible for all PEG Access programming, including but not limited to periods where the Grantor chooses to distribute different PEG programming via the same channel number to subscribers in different Member Cities. 7-1-14 24 . � � .. .�. : ..._ � � ..:.. i .... �J 7.18 Dedicated Return Lines for PEG. Grantee will maintain the PEG origination/return capacity to the sites listed in Exhibit D attached hereto. It is understood and agreed that the sites listed in Exhibit D are served by a coaxial feed that ties into Grantee's Fiber to the Fiber node Cable System architecture as described in Section 5.1. 7.19 Future Return Lines for PEG. At such time that the Grantor determines: (a) That the Grantor desires the capacity to allow Subscribers in the Member Cities to receive PEG programming which may originate from schools, Member City Facilities, other government Facilities or other designated Facilities not listed in Exhibit D; (b) That the Grantor desires to establish or change a location from which PEG programming is originated; or (c) That the Grantor desires to upgrade the connection to Grantee from an existing site on Exhibit D. 7.20 PEG Point of Origination_The Grantor will give Grantee written notice detailing the point of origination and the capability sought by the Grantor. Grantee agrees to submit a cost estimate to implement the Grantor's plan within a reasonable period of time. The cost estimate will reflect Grantee's actual costs with no additional markup, and will reflect that Grantee will accommodate the build up to three hundred fifty (350) feet if the Member City or other agency provides the necessary attachment point for aerial service or conduit pathway for underground service. 7.21 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 the functions and capacity remain available, operate reliably and satisfy all applicable technical standards and related obligations of the Franchise free of charge to the Grantor or its designated entities. 7.22 Regional Channel Six. Grantee shall make available Regional Channel Six as long as it is required to do so by the State of Minnesota. 7.23 Compliance with Minnesota Statutes Chapter 238. In addition to the cequirements contained in this Section 7 of this Franchise, Grantee and Grantor shall comply with the PEG requirements mandated by Minn. Stat. 238.084. SECTION 8 REGULATORY PROVISIONS 8.1 Intent. The Grantor shall have the right to administer and regulate activities under the Franchise up to the full extent permitted by Applicable Law. 8.2 Delegation of Authority to Regulate. The Grantor reserves the right to delegate its regulatory authority wholly or in part to agents of the Grantor, including, but not limited to, an agency which may be formed to regulate several franchises in the region in a manner consistent 7-1-t4 25 . � � .. .�. : ..._ � � ..:.. i .... �J with Applicable Laws. This may include but shall not be limited to the Grantor or other entity as Grantor may determine in its sole discretion. Any existing delegation in place at the time of the grant of this Franchise shall remain intact unless expressly modified by Grantor. 8.3 Areas of Administrative Authority. In addition to any other regulatory authority granted to the Grantor by law or franchise, the Grantor shall have administrative authority in the following areas: (a) Administering and enforcing the provisions of this Franchise, including the adoption of administrative rules and regulations to carry out this responsibility. (b) Coordinating the operation of Access Channels. (c) Formulating and recoinmending long-range cable communications policy for the Franchise Area. (d) Disbursing and utilizing Franchise Fees and other payments or funding as required by this Franchise and paid by Grantee to the Grantor. (e) Administering the regulation of rates, to the extent permitted by Applicable Law. (fj All other regulatory authority permitted under Applicable Law. The Grantor or its designee shall have continuing regulatory jurisdiction and supervision over the System and the Grantee's operations under the Franchise to the extent allowed by Applicable Law. 8.4 Regulation of Rates and Charges. (a) Right to Regulate. The Grantor 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 Grantor and all Subscribers within the Grantor at least thirty (30) Days' notice of any intended increase in 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 Grantee services to 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 7-1-14 26 . � � .. .�. : ..._ � � ..:.. i .... �J the basis of those considerations. Nevertheless, Grantee shall be permitted to establish (1) discounted rates and charges for providing Cable Service to low-income, handicapped, or low-income elderly Subscribers, (2) promotional rates, and (3) bulk rate and package discount pricing. SECTION 9 BOND 9.1 Performance Bond. Upon the Effective Date of this Franchise and at all times thereafter Grantee shall maintain with Grantor a bond in the sum of One Hundred Thousand Dollars ($100,000.00) in such form and with such sureties as shall be acceptable to Grantor, conditioned upon the faithful performance by Grantee of this Franchise and the acceptance hereof given by Grantor 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 Grantor or the Member Cities 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 two percent in excess of the then prime rate), up to the full amount of the bond, and which bond shall further guarantee payment by Grantee of all claims and liens against Grantor or any, public property, and taxes due to Grantor, which arise by reason of the construction, operation, maintenance or use of the Cable System. 9.2 Rights. The rights reserved by Grantor with respect to the bond are in addition to all other rights the Grantor may have under this Franchise or any other law. 9.3 Reduction of Bond Amount. Grantor may, in its sole discretion, reduce the amount of the bond. SECTION 10 SECURITY FUND 10.1 Security Fund. If there is an uncured breach by Grantee of a material provision of this Franchise or a pattern of repeated violations of any provision(s) of this Franchise, then Grantee shall, upon written request from Grantor, establish and provide to the Grantor, as security for the faithful performance by Grantee of all of the provisions of this Franchise, a letter of credit from a financial institution satisfactory to the Grantor in the amount of Twenty Thousand Dollars ($20,000.00). In no event shall Grantee fail to post a Twenty Thousand Dollars ($20,000.00) letter of credit within thirty (30) Days' receipt of a notice of Franchise violation pursuant to this Section 10.1. Failure to post said letter of credit shall constitute a separate material violation of this Franchise, unless the breach is cured within such thirty (30) Day period or longer period allowed under the Franchise. The letter of credit shall serve as a common security fund for the faithful performance by Grantee of all the provisions of this Franchise and compliance with all orders, permits and directions of the Grantor and the payment by Grantee of any claim, liens, costs, expenses and taxes due the Grantor which arise by reason of the construction, operation or maintenance of the Cable System. Interest on this deposit shall be paid to Grantee by the bank on an annual basis. The security may be terminated by Grantor, after notice to Grantee, upon the resolution of the alleged noncompliance. The obligation to 7-1-14 2� . � � .. .�. : ..._ � � ..:.. i .... �J establish the security fund required by this paragraph is unconditional. The fund must be established in those circumstances where Grantee disputes the allegation that it is not in compliance, and maintained for the duration of the dispute. If Grantee fails to establish the security fund as required, the Grantor may take whatever action is appropriate to require the establishment of that fund and may recover its costs, reasonable attorneys' fees, and an additional penalty of Two Thousand Dollars ($2,000.00) in that action. 10.2 Withdrawal of Funds. Provision shall be made to permit the Grantor to withdraw funds from the security fund. Grantee shall not use the security fund for other purposes and shall not assign, pledge or otherwise use this security fund as security for any purpose. 10.3 Restoration of Funds. Within ten (10) Days after notice to it that any amount has been withdrawn by the Grantor from the security fund pursuant to 10.4 of this Section, Grantee shall deposit a sum of money sufficient to restore such security fund to the required amount. 10.4 Liquidated Damages. In addition to recovery of any monies owed by Grantee to Grantor or damages to Grantor as a result of any acts or omissions by Grantee pursuant to the Franchise, Grantor in its sole discretion may charge to and collect from the security fund the following liquidated damages: (a) For failure to provide data, documents, reports or information or to cooperate with Grantor during an Application process or System review, the liquidated damage shall be One Hundred Dollars ($100.00) 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 10.4, the liquidated damage shall be One Hundred Fifty Dollars ($150.00) per Day for each Day, or part thereof, such failure occurs or continues. (c) For failure to test, analyze and report on the performance of the System following a request by Grantor, the liquidated damage shall be Two Hundred Fifty Dollars ($250.00) per Day for each Day, or part thereof, such failure occurs or continues. (d) Forty-five (45) Days following notice from Grantor of a failure of Grantee to comply with construction, operation or maintenance standards, the liquidated damage shall be Two Hundred Dollars ($200.00) per Day for each Day, or part thereof, such failure occurs or continues. (e) For failure to provide the services Grantee has proposed, including but not limited to the implementation and the utilization of the Access Channels the liquidated damage shall be One Hundred Fifty Dollars ($150.00) per Day for each Day, or part thereof, such failure occurs or continues. 10.5 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. 7-1-14 28 . � � .. .�. : ..._ � � ..:.. i .... �J 10.6 Maximum One Hundred Twenty (120) Days. Any liquidated damages for any given violation shall be imposed upon Grantee for a maximum of one hundred twenty (120) Days. If after that amount of time Grantee has not cured or commenced to cure the alleged breach to the satisfaction of the Grantor, the Grantor may pursue all other remedies. 10.7 Withdrawal of Funds to Pay Taxes. If Grantee fails to pay to the Member Cities any taxes due and unpaid; or fails to repay to the Member Cities , any damages, costs or expenses which the Member Cities 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 Grantor to comply with any provision of the Franchise which the Grantor reasonably determines can be remedied by an expenditure of the security, the Grantor may then withdraw such funds from the security fund. Payments are not Franchise Fees as described in Section 16 of this Franchise. 10.8 Procedure for Draw on Security Fund. Whenever the Grantor finds that Grantee has allegedly violated one (1) or more terms, conditions or provisions of this Franchise, a written notice shall be given to Grantee. The written notice shall describe in reasonable detail the alleged violation so as to afford Grantee an opportunity to remedy the violation. Grantee shall have thirty (30) Days subsequent to receipt of the notice in which to correct the violation before the Grantor may require Grantee to make payment of damages, and further to enforce payment of damages through the security fund. Grantee may, within ten (10) Days of receipt of notice, notify the Grantor 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. (a) Grantor shall hear Grantee's dispute at the next regularly scheduled or specially scheduled Council meeting. Grantee shall have the right to speak and introduce evidence. The Grantor shall determine if Grantee has committed a violation and shall make written fndings of fact relative to its determination. If a violation is found, Grantee may petition for reconsideration. (b) If after hearing the dispute, the claim is upheld by the Grantor, then Grantee shall have thirty (30) Days within which to remedy the violation before the Grantor may require payment of all liquidated damages due it. 10.9 Time for Correction of Violation. The time for Grantee to correct any alleged violation may be extended by the Grantor if the necessary action to collect the alleged violation is of such a nature or character as to require more than thirty (30) Days within which to perform provided Grantee commences corrective action within fifteen (15) Days and thereafter uses reasonable diligence, as determined by the Grantor, to correct the violation. 10.10 Replenish Security Fund. Grantee shall have the opportunity to make prompt payment of any assessed liquidated damages and if Grantee fails to promptly remit payment to the Grantor, the Grantor may resort to a draw from the security fund in accordance with the terms of this Section 10 of the Franchise. If Grantor draws upon the security fund delivered pursuant hereto, in whole or in part, Grantee shall replace the same within three (3) Days and 7-1-14 29 . � � .. .�. : ..._ � � ..:.. i .... �J shall deliver to Grantor a like replacement security fund for the full amount stated in Section 10.1 as a substitution of the previous security fund. 10.11 Failure to so Replenish Security Fund. If any security fund is not so replaced, Grantor 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 Grantor 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 Grantor in so performing and paying. The failure to so replace any security fund may also, at the option of Grantor, be deemed a default by Grantee under this Franchise. The drawing on the security fund by Grantor, and use of the money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such default. 10.12 Collection of Funds Not Exclusive Remedy. The collection by Grantor of any damages or monies from the security fund shall not affect any other right or remedy available to Grantor, nor shall any act, or failure to act, by Grantor pursuant to the security fund, be deemed a waiver of any right of Grantor pursuant to this Franchise or otherwise. Notwithstanding this section, however, should the Grantor elect to impose liquidated damages, that remedy shall remain the Grantor's exclusive remedy for the one hundred twenty (120) Day period set forth in Section 10.6. SECTION 11 DEFAULT 11.1 Basis for Default. Grantor shall give written notice of default to Grantee if Grantor, in its sole discretion, determines that Grantee has: (a) Violated any material provision of this Franchise or the acceptance hereto or any rule, order, regulation or determination of the Member Cities, state or federal government, not in conflict with this Franchise. hereof. (b) Attempted to evade any provision of this Franchise or the acceptance (c) Practiced any fraud or deceit upon Grantor, Member Cities or Subscribers. (d) Made a material misrepresentation of fact in the application for or negotiation of this Franchise. 11.2 Default Procedure. If Grantee fails to cure such default within thirty (30) Days after the giving of such notice (or if such default 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 Grantor's sole opinion, to cure such default as soon as possible), then, and in any event, such default shall be a substantial breach and Grantor may elect to terminate the Franchise. The Grantor may place the issue of revocation and termination of this Franchise before the governing body of Grantor at 7-t-�4 30 . � � .. .�. : ..._ � � ..:.. i .... �J a regular meeting. If Grantor decides there is cause or reason to terminate, the following procedure shall be followed: (a) Grantor 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 default. (b) Grantee shall be provided with an opportunity to be heard at a public hearing prior to any decision to terminate this Franchise. (c) If, after notice is given and an opportunity to cure, at Grantee's option, a public hearing is held, and after such public hearing Grantor determines there was a violation, breach, failure, refusal or neglect, the Grantor may declare by resolution this Franchise revoked and of no further force and effect unless there is compliance within such period as the Grantor may fix, such period may not be less than thirty (30) Days provided no opportunity for compliance need be granted for fraud or misrepresentation. 11.3 Mediation. If the Grantee and Grantor are unable to resolve a dispute through informal negotiations during the period of thirty (30) Days following the submission of the claim giving rise to the dispute by one (1) party to the other, then unless that claim has been waived as provided in the Franchise, such claim may be subject to mediation if jointly agreed upon by both parties. Unless the Grantee and Grantor mutually agree otherwise, such mediation shall be in accordance with the rules of the American Arbitration Association currently in effect at the time of the mediation. A party seeking mediation shall file a request for mediation with the other party to the Franchise and with the American Arbitration Association. The request may be made simultaneously with the filing of a complaint, but, in such event, mediation shall proceed in advance of legal proceedings only if the other party agrees to participate in mediation. Mutually agreed upon Mediation shall stay other enforcement remedies of the parties for a period of ninety (90) Days from the date of �ling, unless stayed for a longer period by agreement of the Grantee and Grantor. The Grantee and Grantor shall each pay one-half (1/2) of the mediator's fee and any filing fees. The mediation shall be held in the Grantor unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as a settlement agreement in any court having jurisdiction thereof. Nothing herein shall serve to modify or on any way delay the franchise enforcement process set forth in Section 10 of this Franchise. 11.4 Failure to Enforce. Grantee shall not be relieved of any of its obligations to comply promptly with any provision of this Franchise by reason of any failure of the Grantor to enforce prompt compliance, and Grantor's failure to enforce shall not constitute a waiver of rights or acquiescence in Grantee's conduct. 11.5 Compliance with the Laws. (a) If any federal or state law or regulation shall require or permit Grantor or Grantee to perform any service or act or shall prohibit Grantor 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 7-1-14 31 . � � .. .�. : ..._ � � ..:.. i .... �J Grantor 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 Grantor. SECTION 12 FORECLOSURE AND RECEIVERSHIP 12.1 Foreclosure. Upon the foreclosure or other judicial sale of all or a part of the Cable System, Grantee shall notify the Grantor 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 Grantor 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. SECTION 13 REPORTING REQUIREMENTS 13.1 Quarterly Reports. Within forty-five (45) calendar Days after the end of each calendar quarter, Grantee shall submit to the Grantor along with its Franchise Fee payment a report showing the basis for computation of such fees prepared by an officer of Grantee showing 7-1-14 32 . � � .. .�. : ..._ � � ..:.. i .... �J the basis for the computation of the Franchise Fees paid during that period in a form and substance substantially equivalent to Exhibit B attached hereto. This report shall separately indicate revenues received by Grantee within the Grantor including, but not limited to such items as listed in the definition of "Gross Revenues" at Section 1 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. In addition, Grantee shall provide Grantor with copies of reports of the semi-annual test and compliance procedures established by this Franchise no later than thirty (30) Days after the completion of each series of tests. 13.3 Reports. Upon request of the Grantor and in no event later than thirty (30) Days from the date of receipt of such request, Grantee shall, free of charge, prepare and furnish to the Grantor, 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 Grantor may in good faith agree upon taking into consideration Grantee's need for the continuing confidentiality as prescribed herein. Neither Grantor nor Grantee shall unreasonably demand or withhold information requested pursuant with the terms of this Franchise. 13.4 Communications with Regulatory Agencies. (a) Upon written request, Grantee shall submit to Grantor 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 Grantor no later than thirty (30) Days after receipt of Grantor's request. Grantee shall not claim confidential, privileged or proprietary rights to such documents unless under federal, State, or local law such documents have been determined to be confidential by a court of competent jurisdiction, or a federal or State agency. With respect to all other reports, documents and notifications provided to any federal, State or local regulatory agency as a routine matter in the due course of operating Grantee 's Cable System within the Franchise Area, Grantee shall make such documents available to Grantor upon Grantor's written request. (b) In addition, Grantee and its Affliates 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, Grantor regulation or other requirement relating to the System, use its best efforts to provide the Grantor a copy of the communication, whether specifically requested by the Grantor to do so or not. 7-1-�4 33 . � � .. .�. : ..._ � � ..:.. i .... �J SECTION 14 CUSTOMER SERVICE POLICIES 14.1 Response to Customers and Cooperation with Grantor. Grantee shall promptly respond to all requests for service, repair, installation and information from Subscribers. Grantee acknowledges the Grantor's interest in the prompt resolution of all cable complaints and shall work in close cooperation with the Grantor to resolve complaints. 14.2 Customer Service Agreement and Written Information. Grantee shall provide to Subscribers a comprehensive service agreement and information in writing for use in establishing Subscriber service. Written information shall, at a minimum, contain the following information: (a) Services to be provided and rates for such services. (b) Billing procedures. (c) Service termination procedure. (d) Change in service notifications. (e) Liability specifications. (� Converter/Subscriber terminal equipment policy. (g) Breach of Franchise specifcation. (h) How complaints are handled including Grantee's procedure for investigation and resolution of Subscriber complaints. (i) The name, address, and phone number of the Person identified by the Grantor as responsible for handling cable questions and complaints for the Grantor. This information shall be prominently displayed. A copy of the written information shall be provided to each Subscriber at the time of initial Connection and any subsequent reconnection. 14.3 Reporting Complaints. The requirements of this Section 14.3 shall be subject to federal law regarding Subscriber privacy. Grantee shall maintain all Subscriber data relevant to the resolution of the compliant for a reasonable period. Subscriber data shall include the date, name, address, telephone number of Subscriber complaints as well as the subject of the complaint, date and type of action taken to resolve the complaint, any additional action taken by Grantee or the Subscriber. 14.4 Customer Service Standards. The Grantor hereby adopts the customer service standards set forth in Part 76, § 76.309 of the FCC's rules and regulations, as amended now and in the future. Attached hereto and made part of this Franchise as Exhibit C is the current version of the Rules. Grantee shall, upon request, which request shall include the reason for the request, provide Grantor with information which shall describe in detail Grantee's compliance with each �-1-t4 34 . � � .. .�. : ..._ � � ..:.. i .... �J and every term and provision of this Section 14.4. Grantee shall comply in all respects with the customer service requirements established by the FCC and those set forth herein. To the extent that this Franchise imposes requirements greater than those established by the FCC, Grantee reserves whatever rights it may have to recover the costs associated with compliance in any manner consistent with Applicable Law. 14.5 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. Grantee shall comply with the standards and requirements for customer service set forth below during the term of this Franchise. 14.6 Cable System Office Hours and Telephone Availability. (a) Grantee will maintain a local, toll-free or collect call telephone access line which will be available to its Subscribers twenty-four (24) hours a Day, seven (7) Days a week. (i) Trained Grantee representatives will be available to respond to customer telephone inquiries during Normal Business Hours. (ii) After Normal Business Hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after Normal Business Hours must be responded to by a trained Grantee representative on the next business Day. (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. (e) Customer service center and bill payment locations will be open at least during Normal Business Hours and will be conveniently located. 14.7 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 �-t-t4 35 . � � .. .�. : ..._ � � ..:.. i .... �J one hundred twenty-five (125) feet from the existing distribution system as more specifically set forth in Section 6.6(c). (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. 14.8 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. (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. 14.9 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. 7-t-t4 36 . � � .. .�. : ..._ � � ..:.. i .... �J 14.10 Subscriber Information. Grantee will provide written information on each of the following areas at the time of Installation of Service, at least annually to all Subscribers, and at any time upon request: (a) Products and Services offered; (b) Prices and options for programming services and conditions of subscription to programming and other services; (c) Installation and Service maintenance policies; (d) Instructions on how to use the Cable Service; (e) Channel positions of programming carried on the System; and (� Billing and complaint procedures, including the address and telephone number of the Grantor's cable office. Subscribers shall be advised of the procedures for resolution of complaints about the quality of the television signal delivered by Grantee, including the address of the responsible officer of the Grantor. Subscribers will be notified of any changes in rates, programming services or Channel positions as soon as possible in writing. Notice must be given to Subscribers promptly with 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 14.10. 14.11 Notice or Rate Programming Change. In addition to the requirement of this Section 14.11 regarding advance notification to Subscribers of any changes in rates, programming services or Channel positions, Grantee shall give thirty (30) Days written notice to both Subscribers and the Grantor before implementing any rate or Service change. Such notice shall state the precise amount of any rate change and briefly explain in readily understandable fashion the cause of the rate change (e.g., inflation, change in external costs or the addition/deletion of Channels). When the change involves the addition or deletion of Channels, each Channel added or deleted must be separately identifed. For purposes of the carriage of digital broadcast signals, Grantee need only identify for Subscribers, the television signal added and not whether that signal may be multiplexed during certain dayparts. 14.12 Subscriber Contracts. Grantee shall, upon written request, provide the Grantor with any standard form residential Subscriber contract utilized by Grantee. If no such written contract exists, Grantee shall file with the Grantor a document completely and concisely stating the length and terms of the Subscriber contract offered to customers. The length and terms of any standard form Subscriber contract(s) shall be available for public inspection during Normal Business Hours. A list of Grantee's current Subscriber rates and charges for Cable Service shall be maintained on file with Grantor and shall be available for public inspection. 14.13 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 �-t-14 37 . � � .. .�. : ..._ � � ..:.. i .... �J the Subscriber, credit such Subscriber pro rata for such interruption. For this purpose, every month will be assumed to have thirty (30) Days. 14.14 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 Grantor reserves the right to enforce Grantee's compliance with all Applicable Laws to the maximum extent legally permissible. 14.15 Disputes. All Subscribers and members of the general public may direct complaints, cegarding Grantee's Service or performance to the chief administrative officer of the Grantor or the chief administrative officer's designee. 14.16 Customer Bills. Customer bills shall be designed in such a way as to present the information contained therein clearly and comprehensibly to Customers, and in a way that (a) is not misleading and (b) does not omit material information. Notwithstanding anything to the contrary in Section 14.9, above, Grantee may, in its sole discretion, consolidate costs on Customer bills as may otherwise be permitted by Section 622(c) of the Cable Act (47 U.S.C. §542(c)). 14.17 Failure to Resolve Complaints. Grantee shall resolve a complaint within thirty (30) Days in a manner deemed reasonable by the Grantor under the terms of the Franchise. 14.18 Maintain a Complaint Phone Line. Grantee shall maintain a local or toll-free telephone Subscriber complaint line, available to its Subscribers twenty-four (24) hours per Day, seven (7) Days a week. 14.19 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 unsatisfed with measures taken by Grantee to remedy their complaint. This information will include the phone number of the Grantor office or Person designated to handle complaints. Additionally, Grantee shall state that complaints should be made to Grantee prior to contacting the Grantor. 14.20 Subscriber Privacy. (a) To the extent required by Minn. Stat. §238.084 Subd. 1(s) Grantee shall comply with the following: 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 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 7-1-14 38 . � � .. .�. : ..._ � � ..:.. i .... �J 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. (b) 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 inade 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. (c) 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 (b) of this Section. 14.21 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 unless otherwise authorized by Applicable Law. 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 in accordance with its regular and nondiscriminatory business practices. 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 offered, 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. (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 7-1-14 39 . � � .. .�. : ..._ � � ..:.. i .... �J services not received. This provision does not relieve Grantee of liability established in other provisions of this Franchise. (c) If any Subscriber terminates any monthly service prior to the end of a prepaid period, a proportionate amount of any prepaid Subscriber service fee, using the number of Days as a basis, shall be refunded to the Subscriber by Grantee. SECTION 16 COMPENSATION AND FINANCIAL PROVISIONS. 16.1 Franchise Fees. During the term of this Franchise, Grantee shall pay to the Grantor a Franchise Fee of five percent (5%) of Gross Revenues. If any such law, regulation or valid rule alters the fve percent (5%) Franchise Fee ceiling enacted by the Cable Act, then Grantor 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. In the event Grantee bundles or combines Cable Services (which are subject to the Franchise Fee) with non-Cable Services (which are not subject to the Franchise Fee) so that Subscribers pay a single fee for more than one (1) class of service resulting in a discount on Cable Services, Grantee agrees that for the purpose of calculation of the Franchise Fee, it shall allo�ate to Cable Service revenue no less than a pro rata share of the revenue received for the bundled or combined services. The pro rata share shall be computed on the basis of the published charge for each service in the bundled or combined classes of services when purchased separately. (a) Franchise fees shall be paid quarterly not later than thirty (30) Days following the end of a given quarter. In accordance with this Section 16 of this Franchise, Grantee shall file with the Grantor a Franchise Fee payment worksheet, attached as Exhibit B, signed by an authorized representative of Grantee: which identifies Gross Revenues earned by Grantee during the period for which payment is made. 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 Grantor may have for further or additional sums payable under the provisions of this Franchise. All amounts paid shall be subject to audit and recomputation by Grantor. (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 more than thirty (30) Days after the dates specified herein shall be delinquent and shall thereafter 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 Grantor, 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 7-1-14 40 . � � .. .�. : ..._ � � ..:.. i .... �J 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 thirty (30) 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 will be provided. All such documents pertaining to financial matters that may be the subject of an inspection by the Grantor shall be retained by the Grantee for a minimum period of seven (7) years, pursuant to Minnesota Statutes Section 541.05. The Grantee shall not deny the Grantor 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 Grantor 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 copy of all reports and records required under this or any other section shall be furnished to the Grantor at the sole expense of the Grantee. If the requested books and records are too voluminous, or for security reasons (at Grantee's sole discretion) cannot be copied or removed, then the Grantee may rec�uest, in writing within ten (10) Days of receipt of such request, that the Grantor inspect them at the Grantee's local ofiices or at one of Grantee's offices more convenient to Grantor 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 Grantor upon written request as set forth above, and if the Grantor 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. Grantee agrees to meet with a representative of the Grantor upon request to review its methodology of record-keeping, financial reporting, computing Franchise Fee obligations, and other procedures the understanding of which the Grantor deems necessary for understanding the meaning of reports and records. 16.4 Audit of Records. The Grantor or its authorized agent may at any time and at the Grantor's own expense conduct an independent audit of the revenues and subscriber numbers of Grantee in order to verify the accuracy of Franchise Fees paid to the Grantor. 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 or PEG Fees in an amount of five percent (5%) or more than was due the Grantor, then Grantee shall reimburse the Grantor for the entire cost of the audit within thirty (30) Days of the completion and acceptance of the audit by the Grantor. 16.5 Records to be Reviewed. The Grantor 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 Grantor and Member Cities, and their officers, boards, commissions, elected offcials, agents and employees at all times during this Franchise, from and against any and all claims, suits, actions, liability and judgments for damage or otherwise except those arising wholly from negligence on the part of the Grantor or its employees; 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 7-t-t4 41 . � � .. .�. : ..._ � � ..:.. i .... �J 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 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 Grantor, its officers, or its employees 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 Grantor, its officers, or its employees. 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, Grantor and their officials, ofiicers, 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) Grantor shall be named as an additional insured on the policy. (� 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 Grantor 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 Grantor. 7-1-14 42 . � � .. .�. : ..._ � � ..:.. i .... �J (i) Grantor 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 Grantor 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 Grantor a certificate documenting the insurance required by this Franchise and this Section 16.7, as well as any necessary properly executed endorsements.. The certificate and documents evidencing Insurance shall be in a form acceptable to Grantor and shall provide satisfactory evidence that Grantee has complied with all insurance requirements. Renewal certificates shall be provided to Grantor prior to the expiration date of any of the required policies. Grantor 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, Grantor's right to enforce the terms of Grantee's obligations hereunder. Grantor 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 Guarantee of Performance. Grantee agrees that it enters into this Franchise voluntarily in order to secure and in consideration of the grant from the Grantor of a ten (10) year Franchise. Performance pursuant to the terms and conditions of this Franchise is guaranteed by Grantee. 17.2 Entire Agreement. This Franchise contains the entire agreement between the parties, supersedes all prior agreements or proposals except as specifically set forth herein, and cannot be changed orally but only by an instrument in writing executed by the parties. This Franchise is made pursuant to Minnesota Statutes Chapter 238 and the Grantor Code and is intended to comply with all requirements set forth therein. 17.3 Consent. Wherever the consent or approval of either Grantee or the Grantor is specifically required in this agreement, such consent or approval shall not be unreasonably withheld. 17.4 Prior Franchise Terminated. The cable television franchise as originally granted by Ordinance on day of and was approved by Member Cities in accordance with the Joint Powers Member Agreement is hereby terminated. 17.5 Effectiveness of Franchise. This Franchise and the Ordinance granting it shall become effective based upon the requirements for adoption and approval of an Ordinance granting a Franchise as set forth in the Joint Powers Agreement. The Ordinance and Franchise granted by it shall be accepted in writing by Grantee after notice of public hearing, adoption, review by the Members, and a publication of the Ordinance granting this Franchise and such 7-1-14 43 . � � .. .�. : ..._ � � ..:.. i .... �J other cequirements and in accordance with the schedule as outlined and required by the Joint Powers Agreement. 17.6 Amendment of Franchise. Grantee and Grantor may agree, from time to time, to amend this Franchise. Such written amendments may be made subsequent to a review session pursuant to this Section 17.6 and pursuant to Section 17.22 or at any other time if Grantor 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 Grantor's exercise of its police powers. 17.7 Notice. Any noti�cation that requires a response or action from a party to this Franchise, within a specific time-frame or would trigger a timeline that would affect one or both parties' rights under this Franchise, shall be made in writing and shall be sufficiently given and served upon the other party by hand delivery, first class mail, registered or certified, return receipt requested, postage prepaid, or by reputable overnight courier service and addressed as follows: To the Grantor: Northwest Suburbs Cable Communications Commission 6900 Winnetka Avenue North Brooklyn Park, MN 55428 To the Grantee: Comcast Regional Vice President of Operations 10 River Park Place St. Paul, MN 55107 Recognizing the widespread usage and acceptance of electronic forms of communication, einails and faxes will be acceptable as formal notification related to the conduct of general business amongst the parties to this contract, including but not limited to programming and price adjustment communications. Such communication should be addressed and directed to the Person of record as specified above. 17.8 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. 17.9 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 Grantor 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, 7-1-14 44 . � � .. .�. : ..._ � � ..:.. i .... �J subcontractors or other Persons performing work on Grantee's behalf are familiar with the requirements of this Franchise, the Grantor Code and other Applicable Laws governing the work performed by them. 17.10 Duty to Grantee. Nothing contained in this Franchise shall relieve any Person from liability arising out of the failure to exercise reasonable care to avoid injuring the Grantee's Facilities while performing any work connected with grading, regrading or changing the line of any Street or Public Property or with the construction or reconstruction of any sewer or water system or utility system. 17.11 Interest Rate. For purposes of this Franchise, "prime rate" shall mean the interest reported from time to time by the Wall Street Journal for short-term unsecured loans to commercial borrowers of the highest credit rating. 17.12 Administration of Franchise. The Grantor shall be responsible for the continued administration of this Franchise, except as otherwise assumed by Member Cities pursuant to the enforcement of applicable codes and ordinances required by Member Cities to construct, operate and maintain Grantee's Cable System and Facilities within Streets of a Member City. 17.13 General Provision on Rights and Remedies. (a) All rights and remedies given to Grantor by this Franchise shall be in addition to and cumulative of all other rights or remedies available to Grantor or Member Cities, at law or in equity. The rights and remedies provided by this Franchise are not exclusive and the exercise of any right or remedy hereunder shall not be deemed a waiver of the right to exercise any other right or remedy. No delay or omission of Grantor in the exercise of any right or remedy shall impair any such right or remedy, nor shall any such delay or omission be construed to be a waiver of or acquiescence to any default. The exercise of any such right or remedy by Grantor shall not release Grantee from its obligations or any liability under this Franchise. (b) Grantee shall not claim that any condition or term of this Franchise is unreasonable, arbitrary, void as of the effective date of this Agreement or that Grantor or Member Cities had no power or authority to make such term or condition. (c) Grantor reserves the right to delegate any of its rights or obligations under this Franchise to any Person. Any delegation by Grantor shall be effective upon written notice by Grantor to Grantee of such delegation. Upon receipt of notice by Grantee of Grantor's delegation, Grantee shall be bound by all terms and conditions of the delegation not in conflict with this Franchise. Any such delegation shall not be deemed an amendment to this Franchise or require any consent of Grantee. 17.14 Abandonment of System. Grantee may not abandon the System or any portion thereof without having first given three (3) months written notice to Grantor and conforming to the Grantor Code, as well as the state right-of-way rules, Minn. Rules, Chapter 7819. To the extent required by Minn. Stat. §238.084 Subd. 1(w), Grantee shall compensate Grantor for actual �-1-14 45 . � � .. .�. : ..._ � � ..:.. i .... �J damages resulting from the abandonment. The amount of damages resulting from abandonment shall be determined by Grantor. 17.15 Removal After Abandonment. In the event of Grantee's abandonment of the System, Grantor shall have the right to require Grantee to conform to the Grantor Code, as well as the state right-of-way rules, Minn. Rules, Chapter 7819. If Grantee has failed to commence removal of System, or such part thereof as was designated by Grantor, within thirty (30) Days after written notice of Grantor's demand for removal consistent with Grantor Code and Minn. Rules, Ch. 7819, is given, or if Grantee has failed to complete such removal within twelve (12) months aftec written notice of Grantor's demand for removal is given Grantor shall have the right to apply funds secured by the Performance Bond toward removal and/or declare all right, title, and interest to the System to be in Grantor 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. 17.16 Governing Law. 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. 17.17 Non-enforcement by Grantor. 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 Grantor or to enforce prompt compliance. 17.18 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. 17.19 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. 17.20 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, Grantee's obligations to the Grantor (other than the obligation to provide service to Subscribers) shall survive according to their terms. 17.21 Competitive Equity. If any other Wireline MVPD enters into any agreement with the Grantor or Member Cities to provide multi-channel video programming or its equivalent to residents in the Member Cities, the Grantor, upon written request of the Grantee, shall permit the Grantee to construct and/or operate its Cable System and provide multi-channel video programming or its equivalent to Subscribers in the Member Cities under the same agreement as applicable to the new MVPD. Within one hundred twenty (120) Days after the Grantee submits a written request to the Grantor, the Grantee and the Grantor shall enter into an agreement or 7-1-14 46 . � � .. .�. : ..._ � � ..:.. i .... �J other appropriate authorization (if necessary) containing the same terms and conditions as are applicable to the new wireline MVPD. 17.22 Periodic Evaluation. (a) The Grantor may require evaluation sessions at any time during the term of this Franchise, upon thirty (30) Days' written notice to the Grantee. (b) Topics which may be discussed at any evaluation session may include, but are not limited to, application of new technologies, System and I-Net performance, programming offered, PEG Access Channel capacity, Facilities and support, municipal uses of cable, Subscriber rates, customer complaints, amendments to this Franchise, judicial rulings, FCC rulings, line extension policies and any other topics the Grantor deems relevant. (c) As a result of a periodic review or evaluation session, upon notification from the Grantor, the Grantee shall meet with the Grantor and undertake good faith efforts to reach agreement on changes and modifications to the terms and conditions of the Franchise which are both economically and technically feasible. Nothing herein shall be deemed to require such changes and/or modifications unless both parties agree. Passed and adopted this day of 2014. ATTEST By: Its: Grantoc Clerk By: Its: Grantor GRANTOR : Its: ACCEPTED: This Franchise is accepted, and we agree to be bound by its terms and conditions. Date: Notary: 7-1-14 47 COMCAST OF MINNESOTA/WISCONSIN INC. By: Its: . � � .. .�. : ..._ � � ..:.. i .... �J Exhibit A Free Cable Service to Public Buildings This Exhibit is being finalized with Comcast representatives. 7-t-t4 48 . � � .. .�. : ..._ � � ..:.. i .... �J Exhibit B Franchise Fee Payment Worksheet TRADE SECRET — CONFIDENTIAL Month/Year Month/Year Month/Year Total A la Carte Video Services Audio Services Basic Cable Service Installation Charge Bulk Revenue Expanded Basic Cable Service Pay Service Pay-per-view Guide Revenue Franchise Fee Revenue Advertising Revenue Home Shopping Revenue Digital Services Inside Wiring Other Revenue Equipment Rental Processing Fees PEG Fee FCC Fees Bad Debt Late Fees REVENUE Fee Calculated Fee Factor: 5% This Franchise fee worksheet dated is authorized bv a representative of Comcast. Bv Its �-1-14 49 . � � .. .�. : ..._ � � ..:.. i .... �J Exhibit C Customer Service Standards CODE OF FEDERAL REGULATIONS TITLE 47 -- TELECOMMUNICATION CHAPTER I-- FEDERAL COMMUNICATIONS COMMISSION SUBCHAPTER C-- BROADCAST RADIO SERVICES PART 76--CABLE TELEVISION SERVICE §76.309 Customer Service Obligations (a) A cable franchise authority may enforce the customer service standards set forth in section (c) of this rule against cable operators. The franchise authority must provide affected cable operators ninety (90) days written notice of its intent to enforce the standards. (b) Nothing in this rule should be construed to prevent or prohibit: (1) A franchising authority and a cable operator from agreeing to customer service requirements that exceed the standards set forth in section (c) of this rule; (2) A franchising authority from enforcing, through the end of the franchise term, preexisting customer service requirements that exceed the standards set forth in section (c) of this rule and are contained in current franchise agreements; (3) Any State or any franchising authority from enacting or enforcing any consumer protection law, to the extent not specifically preempted herein; or (4) The establishment or enforcement of any State or municipal law or regulation concerning customer service that imposes customer service requirements that exceed, or address matters not addressed by, the standards set forth in section (c) of this rule. (c) Effective July 1, 1993, a cable operator shall be subject to the following customer service standards: (1) Cable system office hours and telephone availability. (i) The cable operator will maintain a local, toll-free or collect call telephone access line which will be available to its subscribers twenty-four (24) hours a day, seven (7) days a week. (A) Trained company representatives will be available to respond to customer telephone inquiries during normal business hours. (B) After normal business hours, the access line may be answered by a service or an automated response system, including an answering 7-1-14 50 . � � .. .�. : ..._ � � ..:.. i .... �J machine. Inquiries received after normal business hours must be responded to by a trained company representative on the next business day. (ii) Under normal operating conditions, telephone answer time by a customer representative, including wait time, shall not exceed thirty (30) seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met no less than ninety percent (90%) of the time under normal operating conditions, measured on a quarterly basis. (iii) The operator will 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. (iv) Under normal operating conditions, the customer will receive a busy signal less than three percent (3%) of the time. (v) Customer service center and bill payment locations will be open at least during normal business hours and will be conveniently located. (2) Installations, outages and service calls. Under normal operating conditions, each of the following four standards will be met no less than ninety five percent (95%) of the time measured on a quarterly basis: (i) Standard installations will be performed within seven (7) business days after an order has been placed. "Standard" installations are those that are located up to one hundred twenty-five (125) feet from the existing distribution system. (ii) Excluding conditions beyond the control of the operator, the cable operator will begin working on "service interruptions" promptly and in no event later than twenty-four (24) hours after the interruption becomes known. The cable operator must begin actions to correct other service problems the next business day after notifcation of the service problem. (iii) The "appointment window" alternatives for installations, service calls, and other installation activities will be either a specific time or, at maximum, a four hour time block during normal business hours. (The operator may schedule service calls and other installation activities outside of normal business hours for the express convenience of the customer.) (iv) An operator may not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment. (v) If a cable operator representative is running late for an appointment with a customer and will not be able to keep the appointment as scheduled, the customer 7-1-14 51 . � � .. .�. : ..._ � � ..:.. i .... �J will be contacted. The appointment will be rescheduled, as necessary, at a time which is convenient for the customer. (3) Communications between cable operators and cable subscribers. (i) Refunds. Refund checks will be issued promptly, but no later than either- (A) The customer's next billing cycle following resolution of the request or thirty (30) days, whichever is earlier, or (B) The return of the equipment supplied by the cable operator if service is terminated. (ii) Credits. Credits for service will be issued no later than the customer's next billing cycle following the determination that a credit is warranted. (4) Definitions. (i) Normal Business Hours. The term "normal business hours" means those hours during which most similar businesses in the community are open to serve customers. In all cases, "normal business hours" must include some evening hours at least one night per week and/or some weekend hours. (ii) Normal Operating Conditions. The term "normal operating conditions" means those service conditions which are within the control of the cable operator. Those conditions which are not within the control of the cable operator 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 the cable operator 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. (iii) Service Interruption. The term "service interruption" means the loss of picture or sound on one or more cable channels. 7-1-]4 52 . � � .. .�. : ..._ � � ..:.. i .... �J Exhibit D Active PEG Origination Sites 1. Brooklyn Park City Hall, 5200 85�" Ave N, Brooklyn Park 2. Northwest Community Television, 6900 Winnetka, Brooklyn Park 3. Hennepin Technical College, 9000 77t" Ave., Brooklyn Park** 4. North Hennepin Community College, 7400 85t" Ave N, Brooklyn Park 5. New Hope City Hall, 4401 Xylon Avenue N, New Hope 6. District 281 Schools District Center, 4148 Winnetka Ave. N., New Hope 7. Maple Grove City Hall, 12800 Arbor Lanes Parkway, Maple Grove** 8. Osseo City Hall, 415 Central Ave., Osseo 9. District 279 Schools District Center, 11200 93�d Ave N, Osseo 10. Plymouth City Hall, 3400 Plymouth Boulevard, Plymouth I 1. Robbinsdale City Hall, 4221 Lake Road, Robbinsdale 12. Brooklyn Center City Hall, 6301 Shingle Creek Parkway, Brooklyn Center 13. Crystal City Hall, 4141 Douglas Drive, Crystal 14. Golden Valley City Hall, 7800 Golden Valley Road, Golden Valley ** Indicates that there is a fiber connection from the site to the Comcast hub. Note: In addition to the list above, the Wayzata School District is an Active PEG Origination Site. The fiber link between the Wayzata School District and the Comcast Hub located in Plymouth are owned and maintained by the School District. 7-1-14 53 . � � .. .�. : ..._ � � ..:.. i .... �J July 1, 2014 Dear Northwest Suburbs Cable Communications Commission: Comcast Cable is a signatory to a"Voluntary Agreement for Ongoing Improvement to the Energy Efficiency of Set-Top Boxes" (the "Voluntary Agreement"), effective January 1, 2014. The Voluntary Agreement contains energy efficiency standards for pay-TV set-top boxes that are expected to result in significant energy savings for more than 90 million U.S. homes. These new standards, developed through a non-regulatory voluntary arrangement between the pay-TV industry, the consumer electronics industry and energy efficiency advocates, are expected to improve set-top box efficiency by 10 to 45% (depending on box type) by 2017, and may result in savings of more than $1 billion on consumer energy bills annually. This letter confirms that Comcast of Minnesota/Wisconsin, Inc. (the "Franchise Grantee") will adhere to this the Voluntary Agreement in accordance with its terms. For purposes of the franchise renewal, the Franchise Grantee does not agree to stricter standards than set forth in the Voluntary Agreement. If you have questions or concerns, please do not hesitate to contact our office. . � � .. .�. : ..._ � � ..:.. i .... �J Proposed Local Programming Agreement Between Northwest Suburbs Cable Communications Commission Northwest Community Television And Comcast of Minnesota/Wisconsin Inc. July 1, 2014 7-1-14 . � � .. .�. : ..._ � � ..:.. i .... �J TABLE OF CONTENTS RECITALS................................................................................................................................1 SECTION1. DEFINITIONS ......................................................................................................... 1 1.1 CHANNEL .........................................................................................................................1 1.2 FRANCHISE AGREEMENT ............................................................................................. 1 1.3 LOCAL ORIGINATION CHANNEL ................................................................................ 1 SECTION 2. INCORPORATION BY REFERENCE-FRANCHISE AGREEMENT ................. 1 SECTION 3. TERM OF THIS AGREEMENT .............................................................................. 2 SECTION4. NON-EXCLUSIVITY .............................................................................................. 2 SECTION5. NO WAIVER OF RIGHTS ...................................................................................... 2 SECTION 6. SD LOCAL ORIGINATION CHANNEL ................................................................ 2 SECTION 7. HD LOCAL ORIGINATION CHANNEL ............................................................... 2 SECTION8. SIMULCAST ........................................................................................................... 3 SECTION 9. CONTROL OF LOCAL ORIGINATION CHANNEL ............................................ 3 SECTION 10. LOCAL ORIGINATION CHANNEL LOCATIONS ............................................ 3 SECTION 11. NAVIGATION TO LOCAL ORIGINATION CHANNELS ................................. 4 SECTION 12. OWNERSHIP OF LOCAL ORIGINATION CHANNELS .................................... 4 SECTION 13. LOCAL ORIGINATION CHANNEL CARRIAGE ............................................... 4 SECTION 14. LOCAL ORIGINATION TECHNICAL QUALITY .............................................. 4 SECTION 15. CHANGE IN TECHNOLOGY .............................................................................. 5 SECTION 16. ELECTRONIC PROGRAMING GUIDE .............................................................. 5 SECTION 17. NWSCCC NETWORK USE FOR LIVE PROGRAMMING ................................ 5 SECTION 18. COMCAST NETWORK FOR VIDEO FILE TRANSFER .................................... 6 SECTION19. AD ADVAIL GRANTS ......................................................................................... 6 SECTION 20. LOCAL ORIGINATION CHANNEL SUPPORT ................................................. 6 SECTION 21. RELOCATION OF COMCAST' S HEADEND ..................................................... 6 7-1-14 SECTION 22. CAPTIONS ......................................... SECTION 23. ENTIRE AGREEMENT ..................... SECTION 24. SEVERABILITY ................................ SECTION 25. CHANGE IN LAW ............................. SECTION 26. APPLICABILITY OF AGREEMENT SECTION 27. ACCEPTED ........................................ 7-1-14 . � � .. .�. : ..._ � � ..:.. i .... �J ................................................................. 6 ................................................................. 6 ................................................................. 7 ................................................................. 7 ................................................................. 7 ................................................................. 7 . � � .. .�. : ..._ � � ..:.. i .... �J LOCAL PROGRAMMING AGREEMENT This Local Programming Agreement (hereinafter referred to as the "Agreement") is executed as of this day of , 2014 (hereinafter referred to as the `Bffective Date") by and between the Northwest Suburbs Cable Communications Commission ("NWSCCC") and Comcast of Minnesota/Wisconsin Inc. ("Comcast"). RECITALS The parties to this Agreement have entered into a Franchise Agreement in which Comcast will provide cable services pursuant to the Franchise Agreement to the Member Cities of the NWSCCC This Agreement is an understanding that Comcast will make available on its cable system a channel for Local Origination programming. Further, this Agreement describes the specific terms, conditions and requirements and the mutual understandings between the NWSCCC and Comcast regarding programming to be made available by Comcast on the Cable System for Local Origination programming. This Agreement shall be considered part of the Franchise Agreement and fully enforceable pursuant to all terms, conditions and rec�uirements as set forth in the Franchise Agreement. NOW THEREFORE, NWSCCC and Comcast have agreed to enter into this Agreement upon the following terms and conditions: SECTION 1. DEFINITIONS For the purpose of this Agreement, the definitions in the Franchise Agreement are applicable to this Agreement as if fully set forth herein and in addition, the following terms as used in this Agreement shall have the meaning(s) as set for the below. 1.1 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. 1.2 Franchise Agreement means a contractual agreement between NWSCCC and Comcast dated the day of , 2014 and as granted pursuant to the terms of an Ordinance grant by NWSCCC dated the day of , 2014 in accordance with the provisions of the Joint Powers Agreement. 1.3 Local Origination Channel is a Channel designated pursuant to this Agreement to include Local Origination programming developed by the NWSCCC and its designees. SECTION 2. INCORPORATION BY REFERENCE—FRANCHISE AGREEMENT This Agreement incorporates herein by reference all of the terms, conditions and requirements of the Franchise Agreement as fully and completely set forth therein.. In the event of a transfer or assignment of ownership or control of the Franchise Agreement, the transferee shall assume all rights and obligations under this Agreement. This Agreement is enforceable in accordance with the procedures and requirements as set forth in the Franchise Agreement. 7-1-14 . � � .. .�. : ..._ � � ..:.. i .... �J SECTION 3. TERM OF THIS AGREEMENT This Agreement shall have a term concurrent with the Franchise Agreement and subject to modification or change only upon the written agreement of NWSCCC and Comcast or as otherwise may be required by modification of the Franchise Agreement or pursuant to Applicable Law. SECTION 4. NON-EXCLUSIVITY The NWSCCC and Comcast acknowledge that the Franchise Agreement is non-exclusive and any franchise of a similar nature that may be granted by the NWSCCC may include provisions or requirements regarding local programming of a Local Origination Channel. SECTION 5. NO WAIVER OF RIGHTS No course of dealing between the NWSCCC and Comcast, nor any delay on the part of either party in exercising any rights hereunder shall operate as a waiver of any such rights or acquiescence in the actions of the other party in contravention of such rights, except to the extent expressly waived. SECTION 6. SD LOCAL ORIGINATION CHANNEL Comcast will maintain one (1) Local Origination Channel (Channel 12) in Standard Definition for the term of the Franchise Agreement unless or until NWSCCC agrees to relinquish the channel after a thirty-six (36) month period. Comcast shall provide the Standard Definition Channel on the most basic tier of service offered by Comcast in accordance with the Cable Act, Section 611. No sooner than thirty-six (36) months after the Effective Date of the Franchise Agreement and with at least a one hundred twenty (120) day written notice to Comcast, NWSCCC may relinquish the SD Local Origination Channel as provided for in Section 7 of the Franchise Agreement. SECTION 7. HD LOCAL ORIGINATION CHANNEL Twelve (12) months after the Effective Date of the Franchise Agreement, Comcast shall make one (1) Local Origination Channel available in high definition (HD) format, provided that at least eighty percent (80%) of the content on the Channel is in HD format, and not more than five percent (5%) of the content is character generated programming. NWSCCC acknowledges that receipt of an HD Local Origination Channel may require Subscribers to buy or lease special equipment, or pay additional HD charges applicable to all HD services. 7-1-14 . � � .. .�. : ..._ � � ..:.. i .... �J SECTION 8. SIMULCAST NWSCCC and Comcast agree that the Local Origination Channel in SD and the Local Origination Channel in HD will be simulcast. This means the same video content will air simultaneously on both the SD and HD channel. The simulcast would cease if the NWSCCC decides to relinquish the SD Local Origination Channel thirty-six (36) months after the Effective Date of the Franchise Agreement. Any costs associated with the delivery of the Local Origination Channel in HD format, including transmission equipment (HD modulators and demodulators, encoder and decoder equipment, multiplex equipment, and necessary upgrades to video return lines) shall be borne by NWSCCC, and may be paid for out of PEG funds received by NWSCCC. in HD. NWSCCC is responsible for acquiring all equipment necessary to produce programming SECTION 9. CONTROL OF LOCAL ORIGINATION CHANNEL The control and administration of the Local Origination Channel shall rest with NWSCCC and NWSCCC may delegate, from time to time over the term of the Franchise Agreement such control and administration to various entities as determined in NWSCCC's sole discretion. SECTION 10. LOCAL ORIGINATION CHANNEL LOCATIONS The Local Origination SD Channel shall be carried on the Basic Cable Service tier to the extent required by Applicable Law and as set forth in Section 7 of the Franchise Agreement. Nothing herein precludes Comcast from charging for equipment needed for Basic Cable Service. Comcast shall make reasonable efforts to minimize channel movements for the SD and HD Local Origination channels, and shall make reasonable efforts to locate the HD channel in its HD lineup in a manner that is easily accessible to subscribers. Comcast shall provide NWSCCC a minimum of sixty (60) days' notice, and use best efforts to provide one hundred and twenty (120) days' notice prior to the time a Local Origination designation is changed. In addition, Comcast shall pay NWSCCC an amount equal to NWSCCC's actual costs in remarketing the location of Local Origination Channels and managing relocation administratively and technologically, up to a maximum of five thousand dollars ($5,000) per Local Origination Channel. Any such amounts paid by Comcast may be added, at Comcast's discretion, to the price of Cable Services and collected from Subscribers. Comcast, at NWSCCC's expense, will place NWSCCC's notices of the Channel change on its regular monthly billings, upon NWSCCC's request. Comcast agrees not to encrypt the Local Origination Channels differently than other commercial Channels available on the Cable System. 7-1-14 3 . � � .. .�. : ..._ � � ..:.. i .... �J SECTION 11. NAVIGATION TO LOCAL ORIGINATION CHANNELS Comcast agrees that if it utilizes a visual interface under its control on its Cable System for all Channels, the Local Origination Channels shall be treated in a non-discriminatory fashion consistent with Applicable Law so that Subscribers will have ready access to Local Origination Channels. This shall not be construed to require Comcast to pay any third party fees that may result from this obligation. SECTION 12. OWNERSHIP OF LOCAL ORIGINATION CHANNELS Comcast does not relinquish its ownership of or ultimate right of control over a Channel by designating it for Local Origination use. NWSCCC or Local Origination Producers— acquires no property or other interest by virtue of the use of a Channel position so designated. Comcast shall not exercise editorial control over any Local Origination use of a Channel position, except Comcast may refuse to transmit any Local Origination program or portion of a Local Origination program that contains obscenity, indecency, or nudity in violation of Applicable Law. SECTION 13. LOCAL ORIGINATION CHANNEL CARRIAGE Any and all costs associated with any modification of the Local Origination Channels or signals after the Local Origination Channels/signals leave NWSCCC's designated playback facilities, or any designated playback center authorized by NWSCCC shall be borne entirely by Comcast. Comcast shall not cause any programming to override Local Origination programming on any Local Origination Channel, except by oral or written permission from NWSCCC, with the exception of emergency alert signals. NWSCCC or its designee shall be responsible for developing, implementing, interpreting and enforcing rules for the Local Origination Channel use. Comcast shall monitor the Local Origination Channels for technical quality to ensure that they meet FCC technical standards including those applicable to the carriage of Local Origination Channels, provided however, that Comcast is not responsible for the production quality of Local Origination programming productions. NWSCCC, or its designee, shall be responsible for the production and quality of all Local Origination programming. Comcast shall carry all components of the standard definition and high definition Local Origination Channel including, but not limited to, closed captioning, stereo audio and other elements associated with the programming. SECTION 14. LOCAL ORIGINATION TECHNICAL QUALITY Comcast shall not be required to carry a Local Origination Channel in a higher quality format than that of the Channel Signal delivered to Comcast, but Comcast shall not implement a 7-1-14 4 . � � .. .�. : ..._ � � ..:.. i .... �J change in the method of delivery of Local Origination Channels that results in a material degradation of signal quality or impairment of viewer reception of Local Origination Channels, provided that this requirement shall not prohibit Comcast from implementing new technologies that may also utilized for commercial Channels carried on its Cable System. Comcast shall meet FCC signal quality standards when offering Local Origination Channels on its Cable System and shall continue to comply with closed captioning pass-through requirements. There shall be no signiiicant deterioration in a Local Origination Channels signal from the point of origination upstream to the point of reception downstream on the Cable System. Within twenty-four (24) hours of a written request from NWSCCC to Comcast identifying a technical problem with the Local Origination Channel and requesting assistance, Comcast will provide technical assistance or diagnostic services to determine whether or not a problem with a Local Origination signal is the result of matters for which Comcast is responsible and if so, Comcast will take prompt corrective action. If the problem persists and there is a dispute about the cause, then the parties shall meet with engineering representation from Comcast and NWSCCC in order to determine the course of action to remedy the problem. SECTION 15. CHANGE IN TECHNOLOGY In the event Comcast makes any change in the Cable System and related equipment and facilities or in its signal delivery technology, which requires NWSCCC to obtain new equipment in order to be compatible with such change for purposes of transport and delivery of the Local Origination Channels, Comcast shall, at its own expense and free of charge to NWSCCC or its designated entities, purchase such equipment as may be necessary to facilitate the cablecasting of the Local Origination Channels in accordance with the requirements of the Franchise. SECTION 16. ELECTRONIC PROGRAMMING GUIDE Comcast will continue to make available to NWSCCC the ability to place Local Origination channel programming information on the interactive channel guide with Comcast EPG provider. Comcast will be responsible for providing the designations and instructions necessary for the Local Origination Channels to appear on the EPG. All costs and operational requirements of the EPG provider shall be the responsibility of Comcast. NWSCCC acknowledges that the EPG is not technically possible for all Local Origination programming, including but not limited to periods where NWSCCC chooses to distribute different Local Origination programming via the same channel number to subscribers in different Member Cities. SECTION 17. NWSCCC NETWORK USE FOR LIVE PROGRAMMING Comcast will facilitate NWSCCC's use of Comcast's network in order for NWSCCC to share and cablecast high quality live sporting events and other relevant programming of regional significance for both the use of Comcast or other systems who are connected to NWSCCC's network. NWSCCC is open to a co-branding partnership with Comcast with events of high 7-1-14 5 . � � .. .�. : ..._ � � ..:.. i .... �J quality and regional significance that are cablecast beyond the geographic boundaries of NWSCCC's Local Franchise Area. SECTION 18. COMCAST NETWORK FOR VIDEO FILE TRANSFER Comcast will explore and facilitate the ability for NWSCCC's video file transfer data needs via a Comcast Business Services Agreement. SECTION 19. AD ADVAIL GRANTS Comcast will provide NWSCCC with up to thirty thousand dollars ($30,000) worth of ad avails each year at Comcast's lowest unit cost, at no cost to promote programming on NWSCCC's Local Origination Channel. The ad avails will be produced at NWSCCC's cost and submitted to Comcast in a format compatible with such advertising insertion equipment of Comcast. The ad avails will be a run of schedule basis and shall appear on channels used by Comcast for local advertising. SECTION 20. LOCAL ORIGINATION CHANNEL SUPPORT The Local Origination Channel may be supported by those fees available under the Franchise Agreement between NWSCCC and Comcast. SECTION 21. RELOCATION OF COMCAST'S HEADEND In the event Comcast relocates its headend, Comcast will be responsible for replacing or restoring the existing dedicated fiber connections at Comcast's cost so that all the functions and capacity remain available, operate reliably and satisfy all applicable technical standards and related obligations of the Franchise free of charge to NWSCCC or its designated entities. SECTION 22. CAPTIONS The captions for sections throughout this Agreement are intended solely to facilitate reading and reference to the sections and provisions of this Agreement. Such captions shall not affect the meaning or interpretation of this Agreement. SECTION 23. ENTIRE AGREEMENT This written Agreement contains the entire agreement between the parties, supersedes all prior agreements and proposals whether written or oral except as specifically incorporated herein, and cannot be changed without a written amendment and approved by both the NWSCCC and Comcast. 7-1-14 6 . � � .. .�. : ..._ � � ..:.. i .... �J SECTION 24. SEVERABILITY If any section, provision or clause of this Agreement is held by a court of competent jurisdiction to be unlawful, invalid or unenforceable, or is pre-empted by federal or state laws or regulations such section, provision or clause shall be deemed to be severable from the remaining portions of this Agreement and shall not affect the legality, validity or enforceability of the remaining portions of this Agreement. SECTION 25. CHANGE IN LAW In the event there is a change in federal or state law or any regulation applicable to the Franchise Agreeinent or to this Agreement, NWSCCC or Comcast may notify each other of its desire to amend this Agreement in order to comply with the change in such federal or state law or regulation as may be applicable. NWSCCC and Comcast may amend this Agreement to comply with such change provided such amendment is approved by NWSCCC and Comcast. SECTION 26. APPLICABILITY OF AGREEMENT All of the provisions in this Agreement shall bind NWSCCC and Comcast and their respective successors and assigns. This Agreement is authorized as applicable to NWSCCC with all rights and duties as provided to it pursuant to the Joint Powers Agreement as adopted by each Member City. Comcast is authorized to execute this Agreement to coincide with the Franchise Agreement. SECTION 27. ACCEPTED This Agreement is accepted by Comcast and the NWSCCC, and as signed below they each agree to be bound by its terms and conditions. NORTHWEST SUBURBS CABLE COMMUNICATIONS COMMISSION NORTHWEST COMMUNITY TELEVISION By: Its: Date: COMCAST OF MINNESOTA/WISCONSIN INC. By: Its: 7-1-14 . � � .. .�. : ..._ � � ..:.. i .... �J Date: 7-1-]4 � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... � COUNCIL STAFF REPORT ��"�°' Regular A�enda Item: Commission Appointment ��t�r�r�►�: July 15, 2014 Council 1Vleeting FROM: Administrative Services Coordinator Trudy Tassoni DATE: June 20, 2014 TO: Crystal City Council City Manager Anne Norris RE: Appointment to the Environmental Quality Commission The Environmental Quality Commission (EQC) has two vacancies on this 10-member commission. Its charge is to advise the City Council in matters relating to the conservation of environmental resources, including the study and proposa] of possible environmental po]icies, and to promote public education and awareness relating to such environmental issues. This commission a]so motivates interest in the proper use of, and care for, the natura] resources of the city and seeks information about laws, policies, and regulations of all levels of government that may have environmental or ecological significance for the city. At this time, Helene Vigdah] is seeking appointment to the EQC. A criminal history check completed by the Police Department came back clear. Ms. Vigdahl was interviewed by Mayor Pro Tem J. Deshler, Council Liaison J. Selton, and Commission Vice Chair G. Raetz, who unanimously recommend her appointment. Council Action Requested Please consider appointing Helene Vigdahl to the Environmental Quality Commission for an unexpired term to expire on December 31, 2014. A copy of he� application is attached. 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't�*'�S"f��:'S.d1 :I��i:V! 3� �Q� �X�?��1�6'�� 1��. �Q�$ �iG�? `3`e.�`r? s �4ii'�l�t#� �..°��1� �-`::€::�: �....:_?'f�� :4��c-e*".£€F fr� �e�E�= ;�`�:e��4 :L L `.Gir YvtLtC4 ��, 2�� i��fe ��i ��i ��3 �� . �� a"_ _ .�s��a �e__ � a r«_' _ _�' _ _ a x �� a7l'a3'sa.� �dv� 'v�.saoi+iwi i�.3a.3Zlu�i'v'77 i�+u5+ �'�� '� �r��_S��a� ��at�s 'i�3. ��_ ��4 �� .�'s� 1v�3� Fif�ii'iii'ii�iiaii�f� �5si�i�i5'ft E.$iE�F'v�i .��, �� -�� a��. ��a�� `�� 3� �'_"�_ .;n�w •a__"�.__�V__�r+____�'-_- r.__ra� _ ia_..�v._=-___..��-'_L_"_� a,siiii�� c>'L'�a� 3iTs'i�i*oiieue�'L:i31rC'aii�Lsuiii'v'i3 ii33 v+�771'a'aT 'si:i=+.ieza ia� iravi�T +ia�1i�..'� ��, �� €�a� ��,_��°�'�t��, ��s ��c'e, �€��s e�;;r�;�sr:-r�rt�f`.-�srA-:�scg ��r �_c-.::s; �°s�i_-re_ sr; i�;-�;r �rs_r,_t�s �=��; � ��9 �� i ��s� �# ��_ i��. �� a�..�.� � ��,s:..�. ��,,,,..� ��]fr ��s� �2'��'tiss�i`s33 �+s�� i�a' �:,a'�� a�3s:s��s�a.r�s � �ss�.��. ;�,�s;�i �i :"��; a7 ��, ;��i;� #�i �ib�m`�� i n�:�� 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... COUNCIL STAFF REPORT CITYof �►innetka Hills Phase 1 Mill and Overlay Award CRYSTAL FROM: Tom Mathisen, Public Works Director & City Engineer DATE: I:i:E Anne Norris, City Manager (for July 15 Council Meeting) July 10, 2014 Consider Bids and Resolution Awarding Contract - Project # 2014-21 INTRODUCTION On July 10 in a very competitive bidding environment, the following bids were received for the Winnetka Hills Phase 1 Mill and Overlay Project: Park Construction, Inc. $889,177•80 Northwest Asphalt $912,380.35 Midwest Asphalt Corp. $978,517.00 North Valley, Inc. $986,638.38 Hardrives, Inc. $989,443.43. RECYCLED ASPHALT DISCUSSION As previously discussed with the Council, an alternate bid was also received that would allow only 100% virgin material in the asphalt mix as opposed to what for the last 20 years has been standard procedure using a certain percentage of recycled asphalt pavement (RAP). The alternate bid was taken in order to judge a potential costlbenefit of using 100% virgin material due to the issues with pavements put down in the mid-90's using a new at the time MNDOT formula. Considerable research has been done by MNDOT and others since the issues with 1990's pavement have surfaced over the last 6-7 years. The conclusion and consensus is that in some cases not enough bituminous material (the oil binder) was used. The formula was modified and post 1990's pavements have not exhibited the surface issues of the 1990's pavement. All of the City of Crystal street projects, Phases 1-13, have used pavement that included RAP, per MNDOT specifications. To date the Phase 5-13 pavements have not exhibited these types of surface issues. � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... The alternate bids ranged from $74,858 from Park up to $112,500 from Midwest. Under both base bid and the alternate bid configurations, Park remains the low bidder. The Park alternate would create an 8.4% upcharge to the project and would increase the assessments by approximately $155 per parcel. It is the opinion of the Engineering Department that this would not be a good value to the property owner because the research has shown that the surface issues with the 1990's pavement was not due to the RAP in the pavement. This means little would be gained by eliminating it in the mill and overlay. In fact, the Phase 13 wear course paved two weeks ago included RAP. And just to be clear, today's pavements with RAP have a relatively small percentage of RAP with the bulk of the asphalt mix being made up of virgin material. IMPACT OF LOW BID ON PROPOSED ASSESSMENT The feasibility study estimated an assessment of $1,973.81 per parcel, and this is the number communicated to all 489 property owners for both the recently conducted neighborhood meeting and public hearing. The low bid came in lower than the feasibility estimate and will allow an estimated reduction in the proposed assessment of $72.00 per parcel, making the new proposed assessment $1901.81 to spread out over a 10 year period. Once the project is built, the total final cost will be known and the actual assessment amount will be calculated. If the Council ultimately confirms assessing 100 or any percentage of the project, notices of the assessment hearing would be mailed in late September. RECOMMENDATION It is recommended that the Council adopt the attached resolution awarding the BASE BID contract to Park Construction in the amount of $889,177.80. . - .�. � . /., �..;- � �I�.--- •,� � � �� V �S� . � City Engineer i:/pubworks/projects/2014/2014-21 Winnetka Hills Phase 1 Mill Overlay/awardmem � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... RESOLUTION NO. 2014 - AWARDING CONTRACT FOR PROJECT NO. 2014-21 WINNETKA HILLS PHASE 1 MILL AND OVERLAY WHEREAS, the City Manager's office has reviewed and recommends approval of said appropriation and contract award; and WHEREAS, it has been determined that said construction is in the best interest of the city; and WHEREAS, bids were advertised for the project as required by Chapter 429 statute and related State bidding law; and the following five bids were received from qualified contractors: Park Construction, Inc. $889,177.80 Northwest Asphalt $912,380.35 Midwest Asphalt Corp. $978,517.00 North Valley, Inc. $986,638.38 Hardrives, Inc. $989,443.43. NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby awards the contract to Park Construction, Inc. in the amount of $889,177.80. Adopted by the Crystal City Council this 17th day of July 2014. Jim Adams, Mayor ATTEST: Gail Van Krevelen, Assessing/Customer Service Specialist I:\PUE3WORKS\PRO.►FCTS\2014\2014-21 Winnetka Hills PH 1 Mill & Overlay\a�vardres.doc � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. emOrandiUm �.. C.i'CY � of' . �IRYSTAi. DATE: July 8, 2014 Tp: Mayc�r and City Council �' FROM: Anne Norris, City Manager �,r SUBJECT: West Metra Fire Disfirict 2015 Budget •� •• � _. The Jaint Powers Agreementfar the West Metro Fire District requires the West Metro Baard ta approve the budget by June and forward it to both city cauncils far their cansideration. The Board approved the 2015 West Metro budget at its April 16 meeting. Both the Crystal and New Hope city councils r�eed to approve the West Metr� budget by July 31. - • . • •as -* - - • � •r- *- - . • . • .• . + i �� • � 111 i1 . -. - • '� 1 :1 ii � . '. • - i � � �s� ' •- - . • • s�- . •-- .• -• • - - - -• •. . • • - � � � „* s � � � � � .. � � � # . r � i � • • .. . � . ,+ ♦� � . • • •!� � . !.. � . � � i - .M . • • 4 • _ . � 1 /�r o i ' .ii r • i � i" •�� '• i ./ Iia ' ' � .�� r . r � .....�..: � ♦ • �. The capital budget is actually increasing by more than the $30,000.00 the cities' cc�ntributions increase. The balance of the increase will be covered by the capital fund balance. According to the District funding formula, Crystal's share of the 2015 budget is �97�,159:47; an increase of $3,945.18 (;0�4°10), over Crystal's share in 20�4. + -�r . - _ , , � . - , � - . • -i. +r • - � 1 . i�- . • � ��,. _ � ��- . • • ��- - � • . • • - � "' . • - .� . • . • i i Recommend appraval af the 2015 West Metro �ire District budget as recommended by the West Metra Fire District Boacd: � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. � '• 1 ; � ; �. . - � , * � � , � From: Sarah Larson, Fire Chief Subject: 2015 Draft General Operating Budget �ine Item Explanatory Informatior� for Reductions and Increases#ram 2014 ��r ��c�€�s��a� ��s 2015 Draft Budgets Proposed West Metro Fire-Rescue District 2015: General Operating Budget - $1,604,000 Specia) Revenue Pension Fund - $200,000 Capital Fund Contribution - $170,000 Total $1,974,000 2014 Approved Budget with Reorganization Approved West Metro Fire-Rescue District 2014: General Operating Budget - $1,543,195 Special Revenue Pension Fund - $250,000 2014 approved general aperating budget prior to reorganization is the total �f the above general operating budget and special revenue numbers or $1,793,195. Capital Fund Contribution - $170,000 Ttatal $1,963,195 . ! • � • -. - � i :l • i '� -. � • - I � + . r •;' The eoard appraved budget has also been updated to reflect the new accounting codes approved at the November 14, 2022 Saard Meeting. 7"��e i��rr�� 6� r��' ac��iaCif� �f�� a�r�v�t� c�c°ce�i.rnii�a� ��e�� it��c��s: The Baard approved rearganization of the 2014 Budget at their November 23, 2013 meeting. . . .. . . . . . ... . . . . , ..� 61500 Regular Salaries $510,OOA —This line has increased by $3Q,OOO from 2614. This includes all full-time positions and cansideration of step increases and 2% CQLA that at least one City bargaining group hassettled for 2% in 2014. 62000 Part-Time Salaries $320,000 —This line item has increased by $i,380. This includes all paid on=eall positions and cansideration of a 2% COLA that at least one City bargaininggroup has settled for 2% in 2014: � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. 62XXX Part-Time Inspector Salaries $63,000 — This line item is new with the reorganization and has increased by $2,700 this includes the 3 part-time inspectors and consideration of step increases and 2% COLA that at least one City bargaining group has settled for 2% in 2014. 62200 PERA $87,000—This line item has increased by $11,400. This increase is due to an employer contribution increase to 16.2% for Police and Fire PERA in 2015 and all full-time staff are now in Police and Fire PERA. These full-time employees no longer earn relief association pension. 63000 Pension $200,000 — Removed from the general operating budget in 2014 and put into special revenue pension fund. The contribution to this fund decreased by $50,000 due to an increase in state aid and our total potential liability decreasing.. 65500 Uniforms $10,000 — This line item has increased by $2000. We will hire 6-10 new firefighters in 2015. Insurance 63800 Health Insurance $75,000 - This line item has been increased by $4,000 to account for the estimated 10% increase in premiums and an additional employees using opting in for health insurance. Open enrollment for 2015 is in November 2014. 63900 Insurance LTD $5,000 —$ 800 increase due to age and rate increase for six full-time staff for 2015. 64000 Life Insurance $550 -$75 increase six full-time staff for 2015. Supplies 70500 Office Supplies $2,500 -$200 increase based on increased number of part-time staff and historical usage. 75500 Tools and Equipment -$4,150 -$1,150 increase based on historical data and input from logistics. 77000 Turn Out Gear $15,000 -$10,000 decrease based on terminating the Lion Total Care Program for our gear. Service 80200 Consultant $6,000 -$2,000 decrease based on completion of reorganization. 80800 Medical Exams $8,000 -$2,000 decrease based on hiring 2-3 firefighters for the 2016 recruit class. Communication and Delivery 81200 Telephone $22,000 -$3,000 decrease based on removing phones and air cards from service. 81600 Radio Units $23,000 -$2,000 decrease based removing mobile data computers (MDC) from service. � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. Utl�ltl@S 83400 Water/Sewer $8,500 -$500 decrease based on 2013 preliminary year end financials . 83600 Gas $20,000 -$5,000 increase based on 2013 preliminary year end financials and historical data. Contract Maintenance 84200 Building Repairs $10,000 -$900 increase based on the 2013 preliminary year end financials. 84400 Equipment Repairs $22,000 -$1500 increase based on the 2013 preliminary year end financials and input from logistics. 84600 Vehicle Repairs $52,000 -$4,000 increase based on the annual maintenance costs of the engines. 84800 Information Technology $35,000 -$2,000 increase based on 2013 preliminary year end financials. Rent 85400 Office Equipment Rent $7,000 -$1,000 decrease based on 2013 preliminary year end financials. Dues, Subscriptions, & Training 86200 Dues and Subscriptions $2,000 -$600 increase based on the 2013 preliminary year end financials. 86600 Books $1,500 -$1,500 increase based on the 2013 preliminary year end financials. 86900 Licenses & Permits $0 -$5,000 decrease reoccurring cost every 3 years for Firefighter Licensure. Miscellaneous None �tiliE 50100 - C�ty �GontributlodOperating � � � City Cantribution�Penswn Ci(y Contribution Capital Soecial Revenue fund Revenue Total Reve�ue Ezpenditums Personnel w�S��4�Q�;�e-Res�u�o,5t,;� REGULARAGENDA#3 Draft 2615 General Operating Budget, w%Pension, Capital SSpecial Revenue funds 2076 2011 2012 �2013 2613 201d� 2qi4 2U18 Actual AcWal� Acivai �Approved becember Approved� Reorganization DRAFT Amount Amount� �Amaunt� Budaet Financiais - � BudaM. . . i, . , o �. .sa . � . .� .2so;oao 'zao:000 163,991 163,997 144,577� 138,600 770,OD0 770,000 170,000 1,833,277 2,046,373 � 51500-RegularSala�ias� 421,20$ 448,271 �461�,391� 4fi8,7d0 411,545 ais;oao AB�;OVSD�. 510,000 �fi15(ti �-Seuerance� �52,89�.. 52490�-Part-TimeSalaries�� 39,528 �.337,204 .335,019� 353,500 367,399� 3fi0,570 312,62�1� J20,000 82J{XX �- Park�'fime §nspecfors � . � fi0�200 � 63.000 fi2204-PERft �5d,019� 60,551� �62�,07A 82,600 51,208 �70,Otl0 � 75,604 .87,000 . fi2$00�-�Sociai�Securiiy��P�Sedicare �35831 35,816 35,536 37,350 39,096 37,350 ��35,444t � 37,OQ0 � 63004�firePt�w�sion 253,$27 . 287,270.' 2d1�;918 . 286�500 � 18d�P22 �: 280,560 . . ,. 63200 -Flex Spending �� (28) �� 65500- Uni(orms � 5,981 5,541 6,467 6,000 5,958 8,000 8,000 16,tl00 � Insurance� 63500 - Heaith Savings Account - HSA 63600 - Dental Insurance i8� Fs3IIQf4-Heaithtnsurance �45;174� 58;866 �46,074� �53,500 �43;04�� 59�,600� �.71,90Q�. 75,000� 63960 �- Lond Term Disability 3,222 3,722 b,000 2,275 4,200 4,206 5,000 � 64000 - life Insurance (556)� 344 A58 A00 (320} 475.. 475 � 550� 64500-Workers Compinsurance A6,167 46,178 40,968 �d8,506 47,351 35,000 .55,000 :55�,000� 85U6R-:Urtemplaymenflnsurance � . ' .SUPPlieS ` . 70500 OfficeSupplies 2,d55 2;199� 2;207 �2,300� 1;855 2,300. 2,300� 2�,560� 7250�-Cleaning .2,620 �3,728 2,27d� 3,700 2,549 3,000 3,000 3,000� 74000-Misc�Operaiing�. 10,526�. �10,438 7238� �10,800� 8,978 10,006� �10,000� 70,000 .74540�-Geneealfte�air... 2;DS2�� 2,073�� 1,277� 756t70-EtiraipmeniF2e0aies� �&,254�� 8�,540�. ��d;it14 �75500 Too�s & Epuipment 2,882� �3,952� 3,013 �3.000� 9,491 3.000� 3,ODp� d;150� 76006-MotorFueis 73,250� �20.638� 26,827 25,000 24,467 �25,000 �25,000 �25,000� 770D0-TumOutGear �24�,462� �25,307� 79,319� 25p00� �11,180 15,000� 15,000� 15,0�0 775p0-Tres� 1:76Si�� 3.,Q04�� 2"s �.. 78i104�-�ui3dinQReAairs . 2:49i�� 2.674�� .�3,041J� 79066�-�FirePrevention5upplies�� 7,465 4,119� 8,504 �t0,d6d� 10,647 f0;000� �8;040� 8,006� Service - 80200-Consultanf �3;030� 5,605�. 8,700� �1Q000� 5;673 8A00� � 8,000 6,000 � 80406-OtherContract. 757� 391 1,100 . 404 . 1,700 1,106� �1,100 96600- Legal Fees 13,Oi4 � �19,577 30,719 7,500� �73,53d 12,000� 12,000 12,000� 80800-MedicalExams 12,39t� 7,725� 9.459 8,000� 16,892 10,000� 10,000 8,000�� Communication and Delivcry - 81200-Telephone 22,235 �28,fi64� 23,068� �32,000� �21,745 25,660 25,tl06� 22,OW 81400�-PostaAe&Delivery� �1,78fi 1,471 � 7,330 . 1,560� 4S5 1:500 7,50tl 1,500�� 51600-RadioUnits(Ieasi�A.maiM fees;�repairsandpartsl 65,573� �23,204 21,558 .28,700 3D,489 25,000� 25,000� 23,000 �8i60Q�-Gammunic25ot�s �4.#4fi� 4.7�5�.� .3�231} - Utilities � �-� � - 83200-Electric 24,155 24,82d 24;163 �25�,000� 25,2A8� 24�,060� 24,060 2d,600 83460-WatedSevrer� 8,08tl� 7,795.� .9,4-04� 8,506� 8,737 9,OW� 9.000 8,500 83600-Gas 20,005 21,304 id,060 �25,006 21289� �15,000 15,000 20,000 83800-Refuse i.b45 iJ33 8-09 7,200�� 7,797� 1200 1,200 7200 Contract Maintenance - 84000 - Building Maintenance & Cleaninp� 8.d81� �11;287� �9,366 �12,000� �10,361 .72,000 �12,006 �i2,000 84200-BuildingRepairs � �.3,767� d,347 �4,735 9,100 8,488� 9,106 9,700 10,000 �84400-EquipmentRepairs 10,676 �12.003� 17,813 :20,500� 2Q317 20,500 20,506 22,000 �84600-VehicleRepairs - J8,975 �51,67Z 46219 53,000 �72,407� �46.000 �48.000 52,600� �54700-GeaundsPAaintenance�� 753�.� . �84800-IntotmatlonTechnologV 28.360 �29,387� bt,d36 :38,750�� 38,735� J3A00 �33,000 35,060 Rent - 85400-0fficeEquipmentRent 6,815 6�,95b � �6,573 7,600. 7,005� 6,000 6,006 7,006 �S56QO�...ServiceGonfrseis �G,0T5�. T,745.. �.d,i55fi � Dues; Subscriptions, E: Trai�ing - 86200-Dues&Subscripdans � .$#5 �1;376 �1;082 i�,A00� 1,823� �T,400 1,d00 2,000 864Q0 -Awards �5;782 2A5t 6,000 3,000 1;310. �3,000 3,000 3,000 &6600-Books �2,d54. 3,565 .�3J72 .3,Q00 �1,896 �3,000 3,000� 7,500 86800-TreininH� � 28,515 39,809 � 35,499 30,000 � . �44,680� � 70,OW �30,000 �90,000 8fi900 - Licenses & Permits� 5,000 5,000 � �Miscellaneous - 87200-Advertising-Empinyee� d56 1.136� 3N 7,2tl0 �1,000� 7,000� 1A00� 87A00-PrintinA 747 �1,516� .. �535 �1�.506� .�2,236� 1,000 1,060 1,000 87500-Caenerallnsurance ��29,726 �26,490 32,935 .2�,50Q .3A,023� 33,000 �33,000 �33,000 87706-FioaocialServices 36,567 49,846 50,722 37,OOD� A5,854� 37,Otl0 �37,000� �37,000 87900 - Debt Service Principal � . � 87901 - Debt Service Interest Total Generel OPeratin9 ExPenditures� ...1,.0 , � ... �6 ,i i . , . , .. 7 . . . ,... 5 � .. .. , � 3J 5 ... 1,. .... i.. 04.o �. Special Revenue Pension.Expenditures - - - - 25tl 006 200 000 . �Total Generel and Pension Expentlitures 7,700,036 1,767,131 7,706,811 1,787,700 1,706,6d5 1,793;195 1,793,195� 1,804,000 � � � Capita� fund Expenditores Tofal Generai, Pension, Capital Speciai Revenue Fund Expenditures Total ExpendiNres 170 358 � .� 277 ��90 d03 655 275 086 .. 570 5S7 570� 557� 220 8U0. �... 1,818,404 2,044;221 2,110,466 2,062,786 2,383,T52 2,363,75Z 1;024,806 1,810,T28� 2,044,679 2,113,075 �2,666,788 Notei. Amounts Ezclude $2.5 million in revenue and ezpentldure capital activity� :�i:a2oia� 2,363,752� 2�;383,752 2,02d,800 � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. W�V� IV1��11V ��i i� �I��V�� fJ��l 4'V i Cost Sharing Farmula Calculatian in 2014 for use in the 2015 Budget {(a/A) -� (p/P} -� (v/V) / 3} x 100 = Percentage af total budget due from specified municipality Crvstal New Hope a= municipality's avg. calls over 5 years 628 688 p= municipality's population {2010 census} 22;15'1 2Q,339 v= municipality's taxable market value in millians 1,136 �,236 District A= district's avg: calls over 5 years na mutual aid 1,316 P = district's population {2010 census) ��s�� V= district's taxable market value in millions � 2,372 . PerCentage a/A 47.72% 5228°l0 Percentage pIP , 52.13°l0 47.87°l0 Percentage vN �1 47:$9%0 52.11 °/a �� 49:2482% 5Q.751$% 100.00°l0 � 4/4/2D14 7:Q9 PM Y�ar Purchas�d Project Ctescription 2012 ADMIN 15TRATIbiVJTECH NOLOGY On-going Camputer workstations $5,000 On-gaing Laptop workstations $2,000 On-going Printers On-going Tablets 2009 Security Systecn Upgrade 2009 I.CD Prajectorsf partable} 2009 LCD Projector (fixed) 2006 Audia Recarder 2009 Telephone �OGIS Cisca Access Points LOGIS Fire Wall LOG19 Cablingmulti ta single mode LOGIS Station 1 Switch Upgrade LOGIS Station 2 Switch Upgrade �OGIS Wifi Controller LOGIS Wifi replacement for obsolete unit E�OGIS Estimated Lagis Cost �otar 57,aao BUI�DING Station 1 200$ Statian 2 2007 Station Flaor Recoating Statian 3 2012 Statian 1 2005 Station2 2004 Rpparatus Bay Painting Statian 3 2011 Station 1 20Q8 Statian2 2006 Interior Painting Statian 3 2005 Station 1200d Station 2 2001 Training Room Furniture Stetion 3 2005 Station 12005 Station 2 2005 Office Furniture $2,000 Station 3 2012 Stat"ron 1 {7j Station 2 (5} Overhead Doars Station 3 (9) Station 12012 Station 2 2012 Interior Lighting Station 3 2012 Station 1 2006 Station 2 20Q6 Vehicle Exhaust Systerrrs Station 3 2006 Station 1 Station 2 �leeping Quarter Furniture $11,300 $14,000 zoz� �o�� $4;800 $2,000 Sz,4ao $3,000 �2;Sti0 �S,50C} $5,20d $3,840 $6,044 $2;847 $2,426 $15,200 $25,357 $30, $6,Q00 $147,000 .. � � f� . i .: . • . .� ��. , � � �i� �� i�..��'�� ,r REGULAR AGENDA #3 zozs Za�.7 zo�.� �o�.� �02o zoz� zozz zoz3 zo7� zozs $4,800 $4;800 $4,800 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 S2,5oa $z,sao $2,soa $2,�00 $2,soa $3,000 $2,d00 $3,pd0 $4,000 $4,000 $30,Od0 $1,500 $2,000 $S,OOQ $20,000 S1o,aoo $so,oao ' S�a,000 S1a,000 soaaa s0000 �a000 saooa s0000 soaoo S�a,soo 517,soo 516,�00 $2a,soo $��,aao $2a,soa ��s,00a Szi,sao $ss,000 $17,soo $45,000 $45,000 $30,000 $30,OOQ $20,000 $30,000 $10,000 $20,000 �`�� : ��;�°�p�s�� i��ican 1 2£?i�� ic�e� 2 IC's�chen� ��ation 3 ��c��iC?�t 1 ��at�c�� ? ��hs��ac�m tJp�;ra�ies 5�cat�a�i � S��tsc�� 1 ?Q�}8 �t�tiorr � 2{3C36 4��rp�t�n�JRlterr�ative F3c�arin� St��ii�n 3 i{3(l5 ��aticrn 12fl11 ��at�caro 2 2t?�5 �i1llsh�n� M�chines �fiat9�at� "s 199�. �tafiior� � �.�85 Pressure VV�sh�rs 5fia�ic�� :� 1972 �t�tioe� 3 19J1 Sta�icin � Pr�ss��re Vil�sher SY�sterri ��'�� :� ��:� ��€ $11;Oi�{3 �9�i__�1d��b �2��: ��I�tP."1`t�R� PR��7°�� .lJ9P�E�`� 5t�irc�s� i 2t��7 ��cic�n � 2t7(3�7 a�k-��,� �5�#,��i� �SQ,{3Qti �5�?,tJCi� �ta�ic�� 3 2C�C�7 ��c1oe� 1 ��436 St��:Icrri 2 2Uii7 3-Fill �taticaris St�cior� 3 ��13. �fiatian 1 199 � �`ca�iar� 2 � 9�5 3-�3re�ihin� t-';ir �:a�ri;ar�sscsrs �6�,��' 5��'ti�n 31999 5 +ae,., �q��g g� (@g�gg,�g y� y�p�#� ....��&��. ... *Y�RJg49�4.i-.:,:.,;-_.T�s��E..7p8J�9'6d�,.�-.��:.�,_,--^��pffi&ttl4: 1"�0��k.NA"9#�@� 'J"9�� 6 00�+9�� '.€,"'a,�$�89tl'C°J�� . �� .�--i�.4�� ,�� 2�,�ci� ��t�� ,a�� :ao�o �� 2�12 ih�rrrral im��,ers 2�i11 ��s Po�rer�c� F�ns ��}��. ��2C�.Y'IC ��C3S 2f313. �h�ir� �a�vs 2�1i Res�u� �a�+r �C��.� I��/{�i�UIIC �LSCLi� �O[3I ��r�� t ��,��.___ �°�.s _�� nn��s ��,�a� ��;�� -��Ee �a�� :s�,t�� 4 1t�c�nile �'<��1ic�s/��pa��ius ��cl ��ur�liaris �55,��Jt� �� n�� ;�� M�� f��<��':�; �,�,��°�� :��y� �K:, "��w� ��:�,� �� ,��; ��,��C� �Z�,�C�t� � 1�,tlC�t� ��'� �� :�. �� fl�7� ��a,��o �� ,�� i�,��6 �5iY,i3Q�S �St;,�?ii(} $5�,�3U4 �5Q,�74� �S�i,J�t3 .. ��SdB�996P.. . .. �'r`��g896i0.F .. ��@dg696#'49� ... .. :P��g35�'S'd .... �.��pS9�tt8 REGULAR AGENDA #3 �� c�,�iaci ��;�� t�,��o �s�a,��a ��,�� ,fl�� 3x� y�L�ti�:J �Y'.£�p�V4i ��l�d_�iJ "Y�CSyMJL3J �'yG�tf�E3 y�G.��,.,)VS_1 �.7s..83G�V. ��StVVV V•3Sp3�1J m�J/1�tJV , �� , �� a��a ��;�� ,�� ;�� ,�� ,p�t�� a�� ,��o ��3 �� 0 �� — �'�--- � 7��JfC�G.�Q� ��Jt�QO ��a,�� ,�� ,��t� ��,�3�(� �L5,�t3Q ,�.� �c�,d�i�t3 ��:5,�C3�b ��:�1�� 4i�,�{l£i ��fl,flC3t� Year Purchased Projact Description 2012 2013 2014 COMMUNICATION EQUIPMENT On-Going Minitor Pagers $3,700 $5;500 2011 Portable Radio Batteries $6,d00 Total $89,i00 $27,500 $5.5Q0 TECHNlCAI RESCOE EQUIPMEIUT 2005 PPE $6,500 2005 Rope $2,000 $5,Q00 2000 Hardware 2010 RIT Bagsf Equipment 1994 Trailer 2006 Boat Boat Motor 2005 Ice Rescue Suits {9} Totai $Z,00a S11,saa So MEDICA� EQUIPMENT 20Q9 LUCAS On-Going 1990 AED $4,OOQ $4;200 $4,200 ' 2010 Pulse Ox 2010 0/2 Cylinders Tatal $4,Od0 $4,200 $�,200 FIRE SUPRESSION EQUIPMENT 2011 Hase $S;OOG1 2bd7 Nozzles 2011 Adapters/Couplingsf Reducers rot�i $s,00a Sa $o HAZARDOUS MA7ERIALS EQUIPMENT 2�10 Generator 2004 Trailer 2d10 Mister 2009 Gas Monitors $3,000 $5,000 Tocai Ss,oao S�,00a So PREVENTION 2010 FirefxtinguisherTraining Prap 2009 Hazard House 2013 Sparky (Special Fundj 1999 display Board rotar S� $o So; TRAINING Rescue Manikins (Special fund) $Z,n�� Total $2,040 0 �� " � REGULAR AGENDA #3 ��rd A�pprr�ued NI�y 35, 201� t15 2016 2017 2Q18 2019 2020 2021 2022 2023 2024 2025 ;00' $5,500 $5,500 $5,500 �oo ��a,aoo Sso,00a i�0 $55,500 $90,500 $90,500 $0 $1Q,000 $0 $40,000 $50,OOQ $0 $0 )Q4 $18,000 aao So Sa So $zs,000 $o Sa So $a $o So 2Q0' $4,200 $4,200 $4,200 $8,000 20o Sa,2oo S12,Zoa $a,2oo $o So �a So Sa So So $10,OOd $10,000 �o $o Sp Sxo,oao Sia,000 Sa $a $o Sa So 5� $5,000 �o So Ss,oao So $o So So �o So �Q $o so �so,oaa Sa �o �o Sso.000 Sa �o $a ,- 5o So �� a��;� ��»�� i��t��o ��`��T�L�"� ��F�9�v�� (313 U-32 �� i:-1:2 2�3�14 �-2� 2€�07 C-3� 2003 U-31 �JCi� �-2 2€�� c-2� �aa� u-�� 2{�11 �a-�.� �(71i9 t1-.32 �P��ad T�$�� 2�22 2d�i}4 2�}2i �a�� 013 ��:� �� a?,5fl0 ��f�� e�� $�df�� q^J�'d.'J�bp��ffi! v3ffi��g"�ffi9&H ��<ip6i�d tVl�;l�� Tt9� ��avy Res�ue J evalu��:e �1er°s�l / l�ex� P�arch�se �(�29 Er��in�s / Ev�l�aate / E=ar� Cornmi��ee ��J21 �.t��#i R�5GC9C'.S �rass iJtii[�y �� ,�i�� :��,t��a� �a�i,�7� �`:�.:��,�� .9�;€�� `��"� "�� "�� REGULARAGENDA#3 ��.��r�� T�� s��,� �.�, r��.� �..�� o�� ;� �� .� �� . ��2� ��2� �� ,��5fl,C�C�{} ��2,C1{i� ��i3,0(�C3 $45,(9tiC} $51;Ci�0 �46;ClC7Q $�i,tic�[i ��,ao�a ��;�o� $�43;t1(3f� .t . �yb�'P�p4d61MX .... � ��'Y°9*fg�kS4�� ... ....ha°0�p4,1tl&� . � � . ��4ffiy83V$2... ...� kX g@0'd�$�9� ........ y�9 }ffi9g0959� ... . h"h9odg�b'49'L6 ...... � ��6Cy9d&8� .... ��bptl36Jid ..... *a°`��39�G345 ��:;8p��&B .��d8y+�d@d�! g'%�4'H�g��b3 .,�.e.��g�4l� ��y��43 ��ffi9p'd8�9P� y�d,�0B�7p�� 83�y�@C&.4 .Y°S�Rdg/�Si� ��..8�p�68i: �a.�ca,oao (�� ;ooa $5f},Ut3fl � 1 � 1 1 . \..... ...l. \ •.. _ .. . .•.. ■ .. � w � ♦ ..♦��• I�i f�^.. Projected Actual Actual Actual Actua6 Actual Budget - Budget �udget Budget - Budget Budget Budget -- Budget Budget Budget - Budget Budget 2009 2010 2011 2Q12 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2�23 2024 2025 Beginning Fund Balance 592,622 513,977 1,985,909 3,299,483 781,923 835,355 438,974 390,369 256,d71 116,851 -9,814 33,637 41,055 -38,740 -13,184 14,250 98,572 City Con#ributians: unassigned 254,490 153,991 ' 163,991 144;577 139,600 i70,OdQ 170;C�00 2Q0,000 210,OOQ 210,000 220,d00 22D,On0' 2�8,Q00 23d�000 23d,t100 ' 235,000 235,000 City Contrib: designated fire engines 1,250,d00 1;250;000 5ales af Capitai Assets 6,233 700 14,546 54,045 55;180 Other Revenue - Interest/Misc 1Q601 5;393 -4,431 6,26? 3,910 4,177 2;195 1,952 1,280 584 -49 168 205 -194 =66 71 493 Transfer from General or Special Fund 162,216 166;558 176,206 129,&28 Total Revenue 271,324 1,582,300 1,590,664 3$6,095 328,518 174,177 172,195 201,952 211,280 210,584 219,951 220,168 22&,205 229,806 229,934 235,071 235,493 Tatal Expenditures 34g;969 110,368 277,090 2,903,655 2i5,d86 , 570,557. 220,800 336,250 350;500 337;250 1?b,500 212,750 308,000 204,25Q 202,500 150,750 152,000 Ending Fund Balance 513,977 1,985,909 3,299,483 781,923 835,355 438,974 39Q,369 25b,071 116,851 -9,814 33,637 41,055 -38,740 -13,184 14,250 98,572 182,065 Prepaid truck canstruction 1,737;362 2,237,362 Truck expense carry-over 557,270 Board approved carry-overs 202,OQ0 221,500 1b7,500 Major Apparatus Carryover (Per F/B Palicy) 116,591 239,935 308,062 Capital Carryover (Per FjB Policy) 49,967 52,8 91,810 Fund Balance Committed: 0 1,737,362 3,163;190 51 ,297 567,372 0 0 0 Q 0 0 0 0 0 0 0 Fund Balance Uncommitted(Assigned}: 513,977 248,547 136,293 67;626 267,983 438;974 39d,359 256,071 116,$51 =9,814 33,637 41,055 -38,740 -13,184 14,250 98,572 182,d65 Total Fund Balance 513,977 1,985,909 3,299,483 781,923 835,355 438,974 390,369 256,071 116,851 -9,814 33,637 41,055 -38,74Q -13,184 14,250 98,572 182,065 2013 Carryover Represents Amount represents Capital Budget far 2014 plus $167,50? in approved 2013 carryovers Mt7C R�nlacem�nt 27:5aD H:\2014\BOARD\April 16\Budget\April 16 Copy of Option 2 20142025 Summary Projection for Capitat Fund Updated fof Z013 Activity:zlsz�. 4/4j7014 7:10 �PM