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HomeMy WebLinkAbout10-26-15-RAPPROVAL OF AGENDA PUBLIC INQUIRIES/INFORMATIONAL Public inquiries/informational is an opportunity for citizens to bring to the Council ’s attention any items not currently on the agenda. In addressing the Council, please state your name and address for the record, and a brief summary of the specific item being addressed to the Council. To allow adequate time for each person wishing to address the Council, we ask that individuals limit their comments to three (3) minutes. Written documents may be distributed to the Council prior to the meeting, or as bench copies, to allow a more timely presentation. PUBLIC PRESENTATIONS Proclamation In Recognition Of Sue Schroeder, Former Communications Committee Member Mayor Grant MEMO.PDF, ATTACHMENT.PDF STAFF COMMENTS Rice Creek Commons (TCAAP) Update Jill Hutmacher, Community Development Director MEMO.PDF Transportation Update John Anderson, Acting Public Works Director MEMO.PDF APPROVAL OF MINUTES Draft Minutes October 12, 2015 Regular City Council 10 -12 -15 -R.PDF CONSENT CALENDAR Those items listed under the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion under a Consent Calendar format.   There will be no separate discussion of these items, unless a Councilmember so requests, in which event, the item will be removed from the general order of business and considered separately in its normal sequence on the agenda. Claims And Payroll Sue Iverson, Director of Finance and Administrative Services Ashley Bertrand, Accounting Analyst MEMO.PDF 2015 Sanitary Sewer Lining Pay Estimate #1 John Anderson, Acting Public Works Director MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF Arden Plaza Planned Unit Development Agreement - Fourth Amendment - Hemisphere Restaurant Partners Matthew Bachler, Associate Planner MEMO.PDF, ATTACHMENT A.PDF 3rd Quarter Financials Dave Perrault, Finance Analyst MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, ATTACHMENT C.PDF Parks, Trails And Recreation Committee (PTRC) Appointments l PTRC Members Josh Bloyer and Keri Bloyer l PTRC Chair Sara Grant, Parks and Recreation Coordinator MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, MEMO2.PDF, ATTACHMENT A2.PDF Resolution 2015 -045 Accepting The Liability Coverage Limits From The League Of Minnesota Cities Insurance Trust (LMCIT) For 2016 Sue Iverson, Acting City Administrator and Director of Finance and Administrative Services MEMO.PDF, ATTACHMENT A.PDF PULLED CONSENT ITEMS Those items that are pulled from the Consent Calendar will be removed from the general order of business and considered separately in its normal sequence on the agenda. PUBLIC HEARINGS CenturyLink Cable Franchise Agreement Sue Iverson, Acting City Administrator and Director of Finance and Administrative Services MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, ATTACHMENT C.PDF NEW BUSINESS UNFINISHED BUSINESS COUNCIL COMMENTS ADJOURN Mayor: David Grant Councilmembers: Brenda Holden Fran Holmes Dave McClung Vacant Regular City Council Agenda October 26, 2015 7:00 p.m. City Hall Address: 1245 W Highway 96 Arden Hills MN 55112 Phone: 651 -792 -7800 Website : www.cityofardenhills.org City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play. CALL TO ORDER 1. 2. 3. 3.A. Documents: 4. 4.A. Documents: 4.B. Documents: 5. 5.A. Documents: 6. 6.A. Documents: 6.B. Documents: 6.C. Documents: 6.D. Documents: 6.E. Documents: 6.F. Documents: 7. 8. 8.A. Documents: 9. 10. 11. APPROVAL OF AGENDAPUBLIC INQUIRIES/INFORMATIONALPublic inquiries/informational is an opportunity for citizens to bring to the Council ’s attention any items not currently on the agenda. In addressing the Council, please state your name and address for the record, and a brief summary of the specific item being addressed to the Council. To allow adequate time for each person wishing to address the Council, we ask that individuals limit their comments to three (3) minutes. Written documents may be distributed to the Council prior to the meeting, or as bench copies, to allow a more timely presentation.PUBLIC PRESENTATIONSProclamation In Recognition Of Sue Schroeder, Former Communications Committee MemberMayor Grant MEMO.PDF, ATTACHMENT.PDFSTAFF COMMENTSRice Creek Commons (TCAAP) UpdateJill Hutmacher, Community Development Director MEMO.PDFTransportation UpdateJohn Anderson, Acting Public Works Director MEMO.PDF APPROVAL OF MINUTES Draft Minutes October 12, 2015 Regular City Council 10 -12 -15 -R.PDF CONSENT CALENDAR Those items listed under the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion under a Consent Calendar format.   There will be no separate discussion of these items, unless a Councilmember so requests, in which event, the item will be removed from the general order of business and considered separately in its normal sequence on the agenda. Claims And Payroll Sue Iverson, Director of Finance and Administrative Services Ashley Bertrand, Accounting Analyst MEMO.PDF 2015 Sanitary Sewer Lining Pay Estimate #1 John Anderson, Acting Public Works Director MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF Arden Plaza Planned Unit Development Agreement - Fourth Amendment - Hemisphere Restaurant Partners Matthew Bachler, Associate Planner MEMO.PDF, ATTACHMENT A.PDF 3rd Quarter Financials Dave Perrault, Finance Analyst MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, ATTACHMENT C.PDF Parks, Trails And Recreation Committee (PTRC) Appointments l PTRC Members Josh Bloyer and Keri Bloyer l PTRC Chair Sara Grant, Parks and Recreation Coordinator MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, MEMO2.PDF, ATTACHMENT A2.PDF Resolution 2015 -045 Accepting The Liability Coverage Limits From The League Of Minnesota Cities Insurance Trust (LMCIT) For 2016 Sue Iverson, Acting City Administrator and Director of Finance and Administrative Services MEMO.PDF, ATTACHMENT A.PDF PULLED CONSENT ITEMS Those items that are pulled from the Consent Calendar will be removed from the general order of business and considered separately in its normal sequence on the agenda. PUBLIC HEARINGS CenturyLink Cable Franchise Agreement Sue Iverson, Acting City Administrator and Director of Finance and Administrative Services MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, ATTACHMENT C.PDF NEW BUSINESS UNFINISHED BUSINESS COUNCIL COMMENTS ADJOURN Mayor:David Grant Councilmembers:Brenda Holden Fran HolmesDave McClungVacant Regular City Council Agenda October 26, 20157:00 p.m. City Hall Address:1245 W Highway 96 Arden Hills MN 55112 Phone:651 -792 -7800 Website : www.cityofardenhills.org City VisionArden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play.CALL TO ORDER1.2.3.3.A.Documents:4.4.A.Documents:4.B.Documents: 5. 5.A. Documents: 6. 6.A. Documents: 6.B. Documents: 6.C. Documents: 6.D. Documents: 6.E. Documents: 6.F. Documents: 7. 8. 8.A. Documents: 9. 10. 11. APPROVAL OF AGENDAPUBLIC INQUIRIES/INFORMATIONALPublic inquiries/informational is an opportunity for citizens to bring to the Council ’s attention any items not currently on the agenda. In addressing the Council, please state your name and address for the record, and a brief summary of the specific item being addressed to the Council. To allow adequate time for each person wishing to address the Council, we ask that individuals limit their comments to three (3) minutes. Written documents may be distributed to the Council prior to the meeting, or as bench copies, to allow a more timely presentation.PUBLIC PRESENTATIONSProclamation In Recognition Of Sue Schroeder, Former Communications Committee MemberMayor Grant MEMO.PDF, ATTACHMENT.PDFSTAFF COMMENTSRice Creek Commons (TCAAP) UpdateJill Hutmacher, Community Development Director MEMO.PDFTransportation UpdateJohn Anderson, Acting Public Works Director MEMO.PDFAPPROVAL OF MINUTESDraft MinutesOctober 12, 2015 Regular City Council 10 -12 -15 -R.PDFCONSENT CALENDARThose items listed under the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion under a Consent Calendar format.  There will be no separate discussion of these items, unless a Councilmember so requests, in which event, the item will be removed from the general order of business and considered separately in its normal sequence on the agenda.Claims And PayrollSue Iverson, Director of Finance and Administrative ServicesAshley Bertrand, Accounting Analyst MEMO.PDF2015 Sanitary Sewer Lining Pay Estimate #1John Anderson, Acting Public Works Director MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDFArden Plaza Planned Unit Development Agreement - Fourth Amendment -Hemisphere Restaurant PartnersMatthew Bachler, Associate PlannerMEMO.PDF, ATTACHMENT A.PDF3rd Quarter FinancialsDave Perrault, Finance AnalystMEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, ATTACHMENT C.PDFParks, Trails And Recreation Committee (PTRC) AppointmentslPTRC Members Josh Bloyer and Keri Bloyer l PTRC Chair Sara Grant, Parks and Recreation CoordinatorMEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, MEMO2.PDF, ATTACHMENT A2.PDFResolution 2015 -045 Accepting The Liability Coverage Limits From The League Of Minnesota Cities Insurance Trust (LMCIT) For 2016 Sue Iverson, Acting City Administrator and Director of Finance and Administrative Services MEMO.PDF, ATTACHMENT A.PDF PULLED CONSENT ITEMS Those items that are pulled from the Consent Calendar will be removed from the general order of business and considered separately in its normal sequence on the agenda. PUBLIC HEARINGS CenturyLink Cable Franchise Agreement Sue Iverson, Acting City Administrator and Director of Finance and Administrative Services MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, ATTACHMENT C.PDF NEW BUSINESS UNFINISHED BUSINESS COUNCIL COMMENTS ADJOURN Mayor:David Grant Councilmembers:Brenda Holden Fran HolmesDave McClungVacant Regular City Council Agenda October 26, 20157:00 p.m. City Hall Address:1245 W Highway 96 Arden Hills MN 55112 Phone:651 -792 -7800 Website : www.cityofardenhills.org City VisionArden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play.CALL TO ORDER1.2.3.3.A.Documents:4.4.A.Documents:4.B.Documents:5.5.A.Documents:6.6.A.Documents:6.B.Documents:6.C.Documents:6.D.Documents:6.E.Documents:6.F. Documents: 7. 8. 8.A. Documents: 9. 10. 11. Page 1 of 1 DATE: October 26, 2015 TO: Honorable Mayor and City Councilmembers Sue Iverson, Acting City Administrator FROM: Mayor Grant SUBJECT: Proclamation in Recognition of Sue Schroeder, Former Communications Committee Member Background/Discussion Attached for your review is a Proclamation in recognition of Sue Schroeder, former Communications Committee Member. Attachment Attachment A: Proclamation for Sue Schroeder, former Communications Committee Member PUBLIC PRESENTATION – 3A MEMORANDUM i'';'"'w".wut:=`' u•• y.. ."""' w'.:`'w"w.""',,:` .. ..i 'a'S'^.e 5i`u.'""",. ,• vu' tuu uuW`u"u11 yy" i. '. fs UI,A.K!Ll/.YL&.%u'yLp,'I;'d4 1%)LLy.2 Lk!L ulALd.41A1„J.1k d.4C lAJ.,.. A,S..d..AiY21,C A,!d d4?CU dSAC 7A,.;LdS2 l.,L,WU,.V!,;CC,1 Al/lp,,v,Y. A...C..J.1. 1yA.g... l'lr• ',7'C yCCC ASy:.YlhYN 74g7.; }6'!YpLYLLY4 G'.M.'';GAr'. :'. yyy Il cz cd" bA cn401 v Cd t O x 3 -o O t, r~O Cd cn x 0.4 C r cz U Cd ur. CA to Cd d - 0 on O 4' SII o CA ME d r ,., iaa:7,,haw;aaw ia,a;.y i wati'l d;simkz r nw wsxzwai na.r e,,,.rrr a+axnur r: is1,r .rew,,i r;1t v x'..w,ntiti r...r nR .sae`tis..we avufia'enrarew'tiYe.nsa rTwrwN aGaY w`rw:sa :i.:w:a lbw: s r I Page 1 of 1 DATE: October 26, 2015 TO: Honorable Mayor and City Councilmembers Sue Iverson, Acting City Administrator FROM: Jill Hutmacher, Community Development Director SUBJECT: Rice Creek Commons (TCAAP) Update The Metropolitan Council Community Development Committee reviewed the TCAAP Comprehensive Plan Amendment (CPA) on October 19, 2015. The Committee unanimously recommended that the Metropolitan Council approve the CPA at its meeting on October 28, 2015. The 60-day review period for the Metropolitan Council expires on November 1, 2015. STAFF COMMENTS – 4A MEMORANDUM Page 1 of 1 DATE: October 26, 2015 TO: Honorable Mayor and City Councilmembers Sue Iverson, Acting City Administrator FROM: John Anderson, Acting Public Works Director SUBJECT: Transportation Update Background A brief oral update will be provided at the meeting regarding road construction/transportation in the City of Arden Hills. STAFF COMMENTS – 4B MEMORANDUM Approved: CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING OCTOBER 12, 2015 7:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor David Grant called to order the regular City Council meeting at 7:00 p.m. Mayor Grant declared it a non-holiday in order for the Council to conduct business. Mayor Grant stated that it was with deep regret that he needed to make the announcement to the public of the passing of Councilmember Robert Woodburn. He explained that Councilmember Woodburn passed away on Friday, October 2, 2015, after complications from a recent automobile accident. His thoughts and prayers are with the entire Woodburn family. Present: Mayor David Grant, Councilmembers Brenda Holden, Fran Holmes, and Dave McClung Absent: None Also present: Acting City Administrator and Director of Finance and Administrative Services Sue Iverson; Community Development Director Jill Hutmacher; Acting Public Works Director John Anderson; and City Clerk Amy Dietl PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Holmes requested that Item 3A be pulled from the agenda and addressed at the October 26, 2015, City Council meeting. MOTION: Councilmember McClung moved and Councilmember Holden seconded a motion to approve the meeting agenda as amended. The motion carried unanimously (4-0). 2. PUBLIC INQUIRIES/INFORMATIONAL None. 3. PUBLIC PRESENTATIONS ARDEN HILLS CITY COUNCIL – OCTOBER 12, 2015 2 A. Proclamation in Recognition of Sue Schroeder, Former Communications Committee Member This item was pulled from the agenda and will be addressed on October 26, 2015. 4. STAFF COMMENTS A. Rice Creek Commons (TCAAP) Update Community Development Director Hutmacher stated that the Metropolitan Council has notified the City that its application for the TCAAP Comprehensive Plan Amendment (CPA) is complete. The TCAAP CPA will be reviewed by the Community Development Committee on October 19, 2015, and considered for approval by the Metropolitan Council on October 28, 2015. The 60-day review period for the Metropolitan Council expires on November 1, 2015. B. Joint Development Authority Update Community Development Director Hutmacher stated that the TCAAP Joint Development Authority met on Monday, October 5, 2015. JDA Attorney Mike Norton presented information on the quasi-judicial authority of the JDA and the procedures and standards required for that authority under Minnesota law. The presentation was part of ongoing discussions on JDA governance. Heather Worthington, JDA Administrative Director, provided an update on site activities. She noted that site remediation will be complete by the end of October. The County is moving forward with the purchase of the primer-tracer property for a solar array project, and the County Board will consider a Memorandum of Understanding with Xcel Energy at an upcoming meeting. Bids for the reconstruction of the County Road H interchange, including the Rice Creek remeander, are due in late October. C. Transportation Update Acting Public Works Director Anderson reported that the I-35W/County Road 96 bridge deck will be poured this week. He explained that County Road 96 will be closed beginning on October 21, 2015, for signal work and anticipated that the roadway will be open for traffic in early November. Acting Public Works Director Anderson stated that the deck for the County Road F bridge will be poured this week. He indicated that it is anticipated that the bridge will be open for traffic in early November. The City’s trail work will continue in tandem with the bridge. Acting Public Works Director Anderson indicated that Phase III of the City’s PMP project was curbed last week and will be paved later this week. Landscape work will be completed in the coming weeks. Lake Lane is scheduled to be curbed at the end of this week. Acting Public Works Director Anderson explained that the County would be completing some utility work at the intersection of Lexington Avenue and County Road F this fall and the road work would begin in the spring of 2016. ARDEN HILLS CITY COUNCIL – OCTOBER 12, 2015 3 Councilmember Holmes commented that she spoke with Robert Wentzel at the recent State of the City event and reported that Mr. Wentzel thanked the City for addressing all of his concerns. 5. APPROVAL OF MINUTES A. September 14, 2015, Regular City Council B. September 21, 2015, City Council Work Session C. September 28, 2015, Regular City Council MOTION: Councilmember McClung moved and Councilmember Holden seconded a motion to approve the September 14, 2015, regular City Council meeting minutes, September 21, 2015, City Council work session minutes; and September 28, 2015, regular City Council meeting minutes as presented. The motion carried unanimously (4-0). 6. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion to Approve 2015 Pavement Management Program (PMP) Pay Estimate #5 MOTION: Councilmember McClung moved and Councilmember Holden seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried unanimously (4-0). 7. PULLED CONSENT ITEMS None. 8. PUBLIC HEARINGS A. Rice Creek Commons (TCAAP) Development Discussion Opportunity for Residents Mayor Grant stated that under the public hearing section, citizens have an opportunity to discuss ideas regarding the Rice Creek Commons (TCAAP) development. Mayor Grant opened the public hearing at 7:14 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 7:15 p.m. 9. NEW BUSINESS A. Advertise for Council Vacancy Acting City Administrator Iverson stated that due to the unexpected passing of Councilmember Robert Woodburn on October 2, 2015, a vacancy now exists on the City Council. This vacancy will need to be filled by Council appointment until an election is held. She indicated that since ARDEN HILLS CITY COUNCIL – OCTOBER 12, 2015 4 more than two years remain in the unexpired term, a special election will need to be held at the next regular City election. The appointed person shall serve until the qualification of a successor is elected at a special election to fill the unexpired portion of the term. Staff recommended that the Council adopt a resolution declaring the vacancy. Councilmember Holmes asked when the special election would be held. Acting City Administrator Iverson reported that the special election for the open Council position would be held in November of 2016. MOTION: Councilmember Holden moved and Councilmember McClung seconded a motion to adopt Resolution #2015-045 – Declaring a Vacancy of the City Council. Councilmember Holmes asked when the Council would be making an appointment for this position. Mayor Grant commented that the Council will be discussing the open position at its next work session and that he felt it would be a good idea to use the Arden Hills Notes, the City’s website, and the Bulletin to publicize the vacancy. The motion carried (4-0). 10. UNFINISHED BUSINESS None. 11. COUNCIL COMMENTS Councilmember Holmes reported that she has received a number of comments regarding the temporary stop signs at the intersection of County Road E2 and Snelling Avenue. She believed that residents wanted these stop signs to remain in place. She noted that she contacted Jim Tolaas at Ramsey County and he reported that the County would be completing a study to see if the stop signs could remain in place. Councilmember Holden requested an I & I update from staff. Councilmember Holden stated that she was receiving complaints from local business owners located near the Red Fox Road and Lexington Avenue intersection due to signal and traffic delays. She was in favor of discussing this intersection and the signals at a future meeting. Councilmember McClung was in favor of having Jim Tolaas address this matter with the City Council. Councilmember McClung commented that he received an email from the Fire Chief regarding a structure fire at a group home in a member City. He discussed the quick action that was taken by the duty crew to manage the situation. ARDEN HILLS CITY COUNCIL – OCTOBER 12, 2015 5 Councilmember McClung extended his condolences to the Woodburn family. He thanked former Mayor Woodburn for his years of dedicated service to the City of Arden Hills. Mayor Grant sent his condolences to the Robert Woodburn family as well. He appreciated Councilmember Woodburn’s service to the community and stated that he will truly be missed. ADJOURN MOTION: Mayor Grant moved and Councilmember Holden seconded a motion to adjourn. The motion carried unanimously (4-0). Mayor Grant adjourned the regular City Council meeting at 7:28 p.m. __________________________ __________________________ Amy Dietl David Grant City Clerk Mayor Page 1 of 1 DATE: October 12, 2015 TO: Honorable Mayor and City Council Members Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services, Ashley Bertrand, Accounting Analyst SUBJECT: Claims & Payroll Requested Action: 1. Motion to Approve Consent Agenda Item – Claims and Payroll Supporting Documents: Payroll 2015 Payroll #21 .................................................................................... $ 100,499.55 Total Payroll $ 100,499.55 Accounts Payable Claims Through 10/09/2015 Paid Claims (Check No 45076-Check No 45095) ................................. $ 68,322.72 Paid Claims (Check No 45096-Check No 45097) ................................. $ 43,138.65 Total Accounts Payable $ 111,461.37 Total Claims $ 211,960.92 CONSENT ITEM - 6A MEMORANDUM CITY OF ARDEN HILLS PAYROLL # 21 CHECKS DATED: 10/09/15 Biweekly: 09/19/15 - 10/02/15 EMPLOYEE DEDUCTIONS AMT.Payment Method FIT 7,164.75 EFT SIT 2,807.56 EFT FICA Oasdi 4,235.44 EFT FICA Medicare 990.55 EFT TOTAL TAXES 15,198.30 Health Premium 2,424.63 A/P Check* Dental Premium A/P Check* FSA Health Care Reimb.208.33 A/P Check* FSA Dependent Care Reimb.370.83 A/P Check* TOTAL FLEXIBLE SPENDING 3,003.79 HSA Health Saving 622.49 Health Care Savings Plan EFT Health Care Savings Plan-2%253.92 EFT Health Care Savings Plan-4%166.28 EFT TOTAL HEALTH SAVINGS 1,042.69 PERA 4,248.44 EFT ICMA 2,307.16 EFT Central Pension Fund-Union 614.40 A/P Check* MN State Retirement System 459.79 EFT TOTAL RETIREMENT 7,629.79 IUOE 49 Dues (Union)134.00 A/P Check* LTD/STD Insurance 1,289.15 A/P Check* PERA Life Insurance 32.00 A/P Check* 5,260.16 2,135.21 2,135.21 4,902.02 358.14 14,382.16 1,194.66 15,576.82 CITY BENEFIT 4,235.44 990.55 5,225.99 PERA Life Insurance 32.00 A/P Check Life/Addl/Dep Life 116.75 A/P Check* Public Employee Long Term Care 93.72 A/P Check* UNUM 42.55 A/P Check* AFLAC 199.56 EFT Avesis-Vision Care 5.43 A/P Check* TOTAL VOLUNTARY 1,913.16 Total Employee Deductions 28,787.73 Net Payroll 0.00 Direct Deposit 43,413.63 EFT Gross Payroll Tie-Out 72,201.36 STD/LTD Gross - Up 0.00 Plus City Paid Benefit 28,298.19 ICMA Benefit Held 0.00 TOTAL PAYROLL COST 100,499.55 FICA TIE-OUT Gross Payroll 72,201.36 Less Total FSA 3,003.79 Plus Employer Match ICMA 0.00 Plus ICMA Benefit Held 0.00 Net P/R Subject to FICA 69,197.57 FICA Oasdi @ 6.20%4,235.44 FICA Medicare @ 1.45%990.55 Note: Federal and State Payroll Tax obligations are satisfied by means of utilizing the "Taxtel" Electronic Tax Deposit Service. Trans- fers are typically made two business days after the payroll date. * A/P Checks can be found on the ACCOUNTS PAYABLE Check Approval report. Checks may be paid this week or the following week. 100.01 100.01 Accounts Payable User: Printed: ashley.bertrand 10/8/2015 2:22 PM Checks by Date - Detail by Check Date Check No Check DateVendor NameVendor No Check Amount Invoice No ReferenceDescription 0320 Health Partners 10/02/2015ACH 61349039 October 2015 Dental Insurance October 2015 Dental Insurance 1,237.19 1,237.19Total for this ACH Check for Vendor 0320: 0382 ICMA Retirement Trust - 106944 10/02/2015ACH PR Batch 00200.09.2015 ICMA Employer Percent 401PR Batch 00200.09.2015 ICMA Employer Percent 401 358.14 PR Batch 00200.09.2015 ICMA Employee Percent 401PR Batch 00200.09.2015 ICMA Employee Percent 401 310.39 668.53Total for this ACH Check for Vendor 0382: 0387 ICMA Retirement Trust- #302482 10/02/2015ACH PR Batch 00200.09.2015 ICMA Employee DeductionPR Batch 00200.09.2015 ICMA Employee Deduction 1,468.08 PR Batch 00200.09.2015 ICMA Employee PercentPR Batch 00200.09.2015 ICMA Employee Percent 546.12 2,014.20Total for this ACH Check for Vendor 0387: 0750 Verizon Wireless 10/02/2015ACH 9751900800 August/September 2015 Cell Phone Charges August/September 2015 Cell Phone Charges 120.06 9752111596 August/September 2015 Cell Phone Charges August/September 2015 Cell Phone Charges 925.05 1,045.11Total for this ACH Check for Vendor 0750: 0761 Electric Pump, Inc 10/02/2015ACH 0056111-IN Lift Station Parts Lift Station Parts 677.85 677.85Total for this ACH Check for Vendor 0761: 1001 Sprint/Nextel Communications 10/02/2015ACH 196110738-028 August-September 2015 Phone Bill August-September 2015 Phone Bill 169.09 169.09Total for this ACH Check for Vendor 1001: 1041 Aaron Thelen 10/02/2015ACH 09182015-AT 9/8-9/15 Mileage Reimbursement 9/8-9/15 Mileage Reimbursement 7.84 7.84Total for this ACH Check for Vendor 1041: 1110 Pitney Bowes 10/02/2015ACH 09232015-PB September 2015 Postage September 2015 Postage 19.99 09232015-PB September 2015 Postage September 2015 Postage 605.36 625.35Total for this ACH Check for Vendor 1110: 1408 Supply Solutions 10/02/2015ACH 7234 City Hall Supplies City Hall Supplies 43.00 43.00Total for this ACH Check for Vendor 1408: 5596 Jamar Company 10/02/2015ACH 395366 PW Parts PW Parts 16.00 395463 PW Parts 121.00 Page 1AP Checks by Date - Detail by Check Date (10/8/2015 2:22 PM) Check No Check DateVendor NameVendor No Check Amount Invoice No ReferenceDescription 395527 PW Parts PW Parts 720.00 857.00Total for this ACH Check for Vendor 5596: 5648 Matthew Bachler 10/02/2015ACH 09212015-MB July-September 2015 Mileage Reimbursement July-September 2015 Mileage Reimbursement 26.91 26.91Total for this ACH Check for Vendor 5648: 6060 Batteries Plus 10/02/2015ACH 028-445899 PW Parts PW Parts 141.95 141.95Total for this ACH Check for Vendor 6060: ALPI Allegra Print & Imaging 10/02/2015ACH 145189 State of the City Post Card State of the City Post Card 256.98 256.98Total for this ACH Check for Vendor ALPI: HANSJ Julie Hanson 10/02/2015ACH 09252015-JH 9/24 Mileage Reimbursement 9/24 Mileage Reimbursement 13.17 13.17Total for this ACH Check for Vendor HANSJ: 0600 315800-NCPERS Minnesota 10/02/201545098 31581015 September 2015 Payroll Deductions September 2015 Payroll Deductions 64.00 64.00Total for Check Number 45098: UB*00138 Clifford & Ione Aamoth 10/02/201545099 Refund Check 97.63 97.63Total for Check Number 45099: 8371 Alliant Engineering, Inc 10/02/201545100 PC15-003 PC 15-003 Escrow Release PC 15-003 Escrow Release 560.00 560.00Total for Check Number 45100: 0131 Beisswenger's How-To Store 10/02/201545101 634498 PW Parts PW Parts 20.06 635041 PW Parts PW Parts 37.59 637819 PW Parts PW Parts 19.36 639903 PW Parts PW Parts 40.85 639904 PW Parts PW Parts 10.68 640107 PW Parts PW Parts 11.87 644940 PW Parts PW Parts 4.99 648522 PW Parts PW Parts 59.39 651233 PW Parts PW Parts 5.99 651360 PW Parts PW Parts 351.27 652959 PW Parts PW Parts 104.19 653347 PW Parts PW Parts 3.20 669.44Total for Check Number 45101: 4100 Boston Scientific 10/02/201545102 PC 14-015 PC 14-015 Refund PC 14-015 Refund 1,851.12 1,851.12Total for Check Number 45102: UB*00139 Brent Bunne 10/02/201545103 Refund Check 42.55 Page 2AP Checks by Date - Detail by Check Date (10/8/2015 2:22 PM) Check No Check DateVendor NameVendor No Check Amount Invoice No ReferenceDescription 42.55Total for Check Number 45103: CANON Canon Financial Services 10/02/201545104 15279088 September 2015 Copier Lease September 2015 Copier Lease 214.42 15279088 September 2015 Copier Lease September 2015 Copier Lease 1,215.08 1,429.50Total for Check Number 45104: 1033 Comcast 10/02/201545105 44271-0915 September 2015 TV Serivces September 2015 TV Serivces 4.48 4.48Total for Check Number 45105: 0337 D-Rock Center Landscape Supply 10/02/201545106 3019 Parks Supplies Parks Supplies 56.00 56.00Total for Check Number 45106: 5678 E&M Consulting, Inc.10/02/201545107 34918 EDA Publications EDA Publications 349.00 349.00Total for Check Number 45107: 3239 E.G. Rud & Sons, Inc., Land Surveying 10/02/201545108 31437 Lake Valentine Road Trail (MVHS)Lake Valentine Road Trail (MVHS) 2,942.50 2,942.50Total for Check Number 45108: 0841 Ehlers & Associates, Inc.10/02/201545109 68490 TCAAP General Services TCAAP General Services 105.00 105.00Total for Check Number 45109: 3775 Equity Transwestern, LLC 10/02/201545110 PC14-027 PC 14-027 Refund PC 14-028 Refund 630.00 PC14-028 PC 14-028 Refund PC 14-028 Refund 630.00 1,260.00Total for Check Number 45110: 7700 Eventis Telecom Inc. Attn: Dave Cormier 10/02/201545111 2015-00312 ROW #2015-00312 Refund ROW #2015-00312 Refund 1,000.00 1,000.00Total for Check Number 45111: 0176 Frattallone's Hardware, Inc.10/02/201545112 062290-A PW Parts PW Parts 24.05 066600-A PW Parts PW Parts 34.99 066639-A PW Parts PW Parts 6.99 66.03Total for Check Number 45112: 1200 Frattallone, Tom 10/02/201545113 09222015-TF PC 14-035 Refund PC 14-035 Refund 350.00 350.00Total for Check Number 45113: GFOA Government Finance Officers Association 10/02/201545114 2793866 Additional Expense: CAFR Review & SubmissionAdditional Expense: CAFR Review & Submission 65.00 65.00Total for Check Number 45114: 1342 Hanson Builders Inc 10/02/201545115 Page 3AP Checks by Date - Detail by Check Date (10/8/2015 2:22 PM) Check No Check DateVendor NameVendor No Check Amount Invoice No ReferenceDescription 2015-00795 Permit # 2015-00795 Refund Permit # 2015-00795 Refund 2,485.00 2,485.00Total for Check Number 45115: 1340 Landmark Center of Arden Hills, LLC 10/02/201545116 PC14-034TS PC 14-034 Traffic Study Refund PC 14-034 Traffic Study Refund 1,500.00 1,500.00Total for Check Number 45116: 5665 Metering & Technology Solution 10/02/201545117 4489 Water Meter Supplies Water Meter Supplies 1,092.07 1,092.07Total for Check Number 45117: 5443 Metro Products, Inc.10/02/201545118 111120 PW Parts PW Parts 303.93 303.93Total for Check Number 45118: 0240 Metropolitan Area Mgmt. Assn.10/02/201545119 1852 07-09.15 Mtg-Klaers 07-09.15 Mtg-Klaers 20.00 20.00Total for Check Number 45119: 6252 Office Depot 10/02/201545120 18365114454 Office Supplies Office Supplies 46.56 1836539306 Office Supplies Office Supplies 56.13 791145767001 Office Supplies Office Supplies 77.60 180.29Total for Check Number 45120: 0155 Office of MN IT Services 10/02/201545121 W15080685 August 2015 Phone Bill August 2015 Phone Bill 772.48 772.48Total for Check Number 45121: 7025 On Site Sanitation 10/02/201545122 101115 September/October 2015 Restroom Rental September/October 2015 Restroom Rental 460.00 460.00Total for Check Number 45122: 0072 Pine Bend Paving 10/02/201545123 15-586 Cummings Park Trail Cummings Park Trail 2,201.04 2,201.04Total for Check Number 45123: 4710 Roger Vadnais Plumbing & Pump Service 10/02/201545124 42575 City Hall Repair City Hall Repair 257.00 257.00Total for Check Number 45124: 1387 Standard Insurance Company 10/02/201545125 147490-1015 October 2015 STD/LTD/Life Insurance October 2015 STD/LTD/Life Insurance 1,622.68 1,622.68Total for Check Number 45125: 0327 Staples Business Advantage 10/02/201545126 3277184904 Office Supplies Office Supplies 546.95 3277184907 Office Supplies Office Supplies 63.49 610.44Total for Check Number 45126: 1319 David & Julie Stromberg 10/02/201545127 Page 4AP Checks by Date - Detail by Check Date (10/8/2015 2:22 PM) Check No Check DateVendor NameVendor No Check Amount Invoice No ReferenceDescription 09282015-DS 2 Bubble Soccer Refunds 2 Bubble Soccer Refunds 20.00 20.00Total for Check Number 45127: 0925 T-Mobile 10/02/201545128 09222015-TMobil August 2015 Tablet Charges August 2015 Tablet Charges 1,234.22 1,234.22Total for Check Number 45128: 1161 Valley-Rich Co., Inc.10/02/201545129 21969 Sanitary Sewer Pipe Repair Sanitary Sewer Pipe Repair 2,327.81 2,327.81Total for Check Number 45129: 33,783.38Total for 10/2/2015: 0192 Grainger, Inc 10/08/2015ACH 9839556355 PW Parts PW Parts 111.41 9841096994 PW Parts PW Parts 157.02 268.43Total for this ACH Check for Vendor 0192: 0220 Minnesota Department of Labor & Industry 10/08/2015ACH 23154123005 Q3 2015 Building Surcharge Report Q3 2015 Building Surcharge Report 7,375.63 7,375.63Total for this ACH Check for Vendor 0220: 0285 Xcel Energy 10/08/2015ACH 472309800 Aug-Sept 2015 Charges Aug-Sept 2015 Charges 3,340.34 3,340.34Total for this ACH Check for Vendor 0285: 0382 ICMA Retirement Trust - 106944 10/08/2015ACH PR Batch 00100.10.2015 ICMA Employer Percent 401PR Batch 00100.10.2015 ICMA Employer Percent 401 358.14 PR Batch 00100.10.2015 ICMA Employee Percent 401PR Batch 00100.10.2015 ICMA Employee Percent 401 310.39 668.53Total for this ACH Check for Vendor 0382: 0387 ICMA Retirement Trust- #302482 10/08/2015ACH PR Batch 00100.10.2015 ICMA Employee PercentPR Batch 00100.10.2015 ICMA Employee Percent 528.69 PR Batch 00100.10.2015 ICMA Employee DeductionPR Batch 00100.10.2015 ICMA Employee Deduction 1,468.08 1,996.77Total for this ACH Check for Vendor 0387: 1041 Aaron Thelen 10/08/2015ACH 10022015-AT 9/22-10/1 Mileage Reimbursement 9/22-10/1 Mileage Reimbursement 14.56 14.56Total for this ACH Check for Vendor 1041: 1782 Willie McCray 10/08/2015ACH 100 9/10-9/15 Umpire Services 9/10-9/15 Umpire Services 208.00 101 9/22, 9/24 Umpire Services 9/22, 9/24 Umpire Services 208.00 416.00Total for this ACH Check for Vendor 1782: 1785 EcoEnvelopes 10/08/2015ACH 10082015-Eco October 2015 Utility Billing Postage October 2015 Utility Billing Postage 329.67 10082015-Eco October 2015 Utility Billing Postage October 2015 Utility Billing Postage 329.66 10082015-Eco October 2015 Utility Billing Postage October 2015 Utility Billing Postage 329.67 Page 5AP Checks by Date - Detail by Check Date (10/8/2015 2:22 PM) Check No Check DateVendor NameVendor No Check Amount Invoice No ReferenceDescription 989.00Total for this ACH Check for Vendor 1785: 5596 Jamar Company 10/08/2015ACH 396193 PW Parts PW Parts 306.00 306.00Total for this ACH Check for Vendor 5596: 5648 Matthew Bachler 10/08/2015ACH 10052015-MB P&Z Conferences P&Z Conferences 230.62 230.62Total for this ACH Check for Vendor 5648: TOII Tokle Inspections, Inc 10/08/2015ACH 10012015-Tokle September 2015 Inspections September 2015 Inspections 2,864.80 2,864.80Total for this ACH Check for Vendor TOII: 0761 Electric Pump, Inc 10/08/2015ACH 0056147-IN Lift Station Repair Lift Station Repair 10,093.07 10,093.07Total for this ACH Check for Vendor 0761: CPF1 Central Pension Fund 10/08/201545130 09302015-CPF September 2015 Contributions September 2015 Contributions 1,228.80 1,228.80Total for Check Number 45130: 0296 City of Arden Hills 10/08/201545131 10052015-PC September 2015 Petty Cash Rec September 2015 Petty Cash Rec 67.95 10052015-PC September 2015 Petty Cash Rec September 2015 Petty Cash Rec 15.96 10052015-PC September 2015 Petty Cash Rec September 2015 Petty Cash Rec 102.67 186.58Total for Check Number 45131: 6200 Flaherty's Arden Bowl 10/08/201545132 FAB5054 2015 State of the City Meeting 2015 State of the City Meeting 613.60 613.60Total for Check Number 45132: 8931 HR Specialist 10/08/201545133 SBQ1R04-2016 2016 Subscription Renewal 2016 Subscription Renewal 249.00 249.00Total for Check Number 45133: 0390 INT'L Union Operating Engineers-Union Dues10/08/201545134 09112015-INT September 2015 Union Dues September 2015 Union Dues 268.00 268.00Total for Check Number 45134: 0147 ISD 621-Mounds View Community Ed 10/08/201545135 6005 Valentine Hills Facility Rental Valentine Hills Facility Rental 760.00 6075 Valentine Hills Facility Rental Valentine Hills Facility Rental 17.33 777.33Total for Check Number 45135: 1450 League of MN Cities Inc. Trust (SP) 10/08/201545136 09302015-LMC Claim #11053070 Q3/Q3 Payment Claim #11053070 Q3/Q3 Payment 921.20 921.20Total for Check Number 45136: 0214 LTG Power Equipment 10/08/201545137 194722 PW Parts PW Parts 70.96 Page 6AP Checks by Date - Detail by Check Date (10/8/2015 2:22 PM) Check No Check DateVendor NameVendor No Check Amount Invoice No ReferenceDescription 70.96Total for Check Number 45137: 9455 Minnesota Pump Works 10/08/201545138 7609 Sewer/Water Supplies Sewer/Water Supplies 55.34 7609 Sewer/Water Supplies Sewer/Water Supplies 55.34 110.68Total for Check Number 45138: 5663 Nova-Frost Incorporated 10/08/201545139 14-1464 County Road E Expenses County Road E Expenses 6,208.00 6,208.00Total for Check Number 45139: 3100 Provident Life and Accident Ins Co 10/08/201545140 9672443-0915 September 2015 UNUM Payment September 2015 UNUM Payment 85.10 85.10Total for Check Number 45140: 0811 Ramsey County 10/08/201545141 PRRLG-001443 Q3 2015 Election Contract Payment Q3 2015 Election Contract Payment 4,682.00 4,682.00Total for Check Number 45141: 0327 Staples Business Advantage 10/08/201545142 3277518667 Office Supplies Office Supplies 17.16 3277665521 Office Supplies Office Supplies 117.77 3277964243 Office Supplies Office Supplies 137.98 272.91Total for Check Number 45142: 0576 TimeSaver Off Site Secretarial 10/08/201545143 M21584 8/31 CC Mtg, 9/9 Plan Com Mtg 8/31 CC Mtg, 9/9 Plan Com Mtg 166.00 M21584 8/31 CC Mtg, 9/9 Plan Com Mtg 8/31 CC Mtg, 9/9 Plan Com Mtg 228.50 394.50Total for Check Number 45143: 0242 Met Council Environ. Service-SAC 10/08/201545144 10062015-SAC September 2015 SAC Payment September 2015 SAC Payment 19,681.20 19,681.20Total for Check Number 45144: 0811 Ramsey County 10/08/201545145 PUBW-014965 August 2015 Labor/Parts Expenses August 2015 Labor/Parts Expenses 9,840.00 PUBW-014965 August 2015 Labor/Parts Expenses August 2015 Labor/Parts Expenses 3,524.38 13,364.38Total for Check Number 45145: 77,677.99Total for 10/8/2015: Report Total (74 checks): 111,461.37 Page 7AP Checks by Date - Detail by Check Date (10/8/2015 2:22 PM) Page 1 of 2 DATE: October 26, 2015 TO: Honorable Mayor and City Councilmembers Sue Iverson, Acting City Administrator FROM: John Anderson, Acting Public Works Director SUBJECT: 2015 Sanitary Sewer Lining Pay Estimate #1 Requested Action Approve Payment #1 to Hydro Klean, LLC in the amount of $64,165.00 for the 2015 Sanitary Sewer Lining. Approve Change Order No. 1 in the amount of $1,485.85 Background The City Council awarded the 2015 Sanitary Sewer Lining to Hydro Klean, LLC on April 13, 2015, in the amount of $507,465.50. Discussion This first pay request includes work through October 1, 2015. Five percent is being withheld from the work completed according to the contract documents. The payment is in the amount of $60,956.75 Major items of work for this payment are:  Manhole sealing in the base bid  Sewer lining in alternate A and B areas Change Order No. 1 includes two items the first deals with three sewer lines that have unusual pipe sizes that require specialty liners. The liners are available and can be supplied for use on the site but will require a couple weeks to get to the site and therefore the completion date has been extended by 14 days. The second part of this change order deals with securing manhole castings to the manhole sections once the lining is complete. The additional time and materials of this change order is $1,485.85 CONSENT ITEM – 6B MEMORANDUM Page 2 of 2 Financial Implications The following breakdown shows the funding sources and the amounts for Payment #1 Funding Source Amount Surface Water Management $ 0 Sanitary Sewer Utility $60,956.75 Total $60,956.75 Attachments Attachment A: Payment Estimate #1 Attachment B: Change Order No. 1 PARTIAL PAY ESTIMATE #1 FROM: TO: CONTRACTOR:Hydro-Klean, LLC ADDRESS:33 N.W. 49th Place, Des Moines, IA 50321-1158 OWNER:CITY OF ARDEN HILLS PROJECT: SUBSTANTIAL COMPLETION DATE AMOUNT OF CONTRACT October 15, 2015 ORIGINAL:$507,465.50 REVISED: ITEM NO. ITEM DESCRIPTION UNIT QTY. UNIT PRICE QTY. TOTAL PRICE QTY. TOTAL PRICE SCHEDULE 1.0 - BASE BID SEWER LINING 1 18 INCH - CIPP LINING LF 1,868.00 58.20 0.00 $0.00 0.00 $0.00 2 15 INCH - CIPP LINING LF 3,044.00 43.70 0.00 $0.00 0.00 $0.00 3 12 INCH - CIPP LINING LF 557.00 36.70 0.00 $0.00 0.00 $0.00 4 REOPEN SERVICE EA 31.00 75.00 0.00 $0.00 0.00 $0.00 5 REMOVE PROTRUDING TAP HR 5.00 250.00 0.00 $0.00 0.00 $0.00 SCHEDULE 1.0 - BASE BID SEWER LINING -- TOTAL $0.00 $0.00 SCHEDULE 2.0 - BASE BID MANHOLE SEALING 1 SEAL MANHOLE HR 45.00 225.00 7.80 $1,755.00 7.80 $1,755.00 2 MANHOLE GROUT GAL 300.00 15.00 38.00 $570.00 38.00 $570.00 SCHEDULE 2.0 - BASE BID MANHOLE SEALING -- TOTAL $2,325.00 $2,325.00 SCHEDULE 3.0 - ALTERNATE A BID SEWER LINING 1 8 INCH - CIPP LINING LF 1,211.00 27.60 1,316.00 $36,321.60 1,316.00 $36,321.60 2 REOPEN SERVICE EA 10.00 75.00 9.00 $675.00 9.00 $675.00 3 REMOVE PROTRUDING TAP HR 1.00 250.00 0.00 $0.00 0.00 $0.00 SCHEDULE 3.0 - ALTERNATE A BID-- TOTAL $36,996.60 $36,996.60 SCHEDULE 4.0 - ALTERNATE B BID SEWER LINING 1 12 INCH - CIPP LINING LF 980.00 36.70 235.00 $8,624.50 235.00 $8,624.50 2 8 INCH - CIPP LINING LF 530.00 27.60 308.00 $8,500.80 308.00 $8,500.80 3 REOPEN SERVICE EA 5.00 75.00 5.00 $375.00 5.00 $375.00 4 REMOVE PROTRUDING TAP HR 1.00 250.00 0.00 $0.00 0.00 $0.00 SCHEDULE 4.0 - ALTERNATE B BID -- TOTAL $17,500.30 $17,500.30 SCHEDULE 5.0 - ALTERNATE C BID SEWER LINING 1 15 INCH - CIPP LINING LF 1,346.00 43.70 0.00 $0.00 0.00 $0.00 2 12 INCH - CIPP LINING LF 116.00 36.70 0.00 $0.00 0.00 $0.00 3 REOPEN SERVICE EA 4.00 75.00 0.00 $0.00 0.00 $0.00 4 REMOVE PROTRUDING TAP HR 1.00 250.00 0.00 $0.00 0.00 $0.00 5 SEAL MANHOLE HR 35.00 225.00 0.70 $157.50 0.70 $157.50 6 MANHOLE GROUT GAL 140.00 15.00 3.00 $45.00 3.00 $45.00 SCHEDULE 5.0 - ALTERNATE C BID -- TOTAL $202.50 $202.50 SCHEDULE 6.0 - ALTERNATE D BID SEWER LINING 1 10 INCH - CIPP LINING LF 841.00 32.40 0.00 $0.00 0.00 $0.00 2 8 INCH - CIPP LINING LF 1,075.00 27.60 256.00 $7,065.60 256.00 $7,065.60 September 21, 2015 October 1, 2015 2015 SANITARY SEWER LINING THIS PERIOD ORIGINAL: REVISED: ORIGINAL CONTRACT TOTAL TO DATE 1 ITEM NO. ITEM DESCRIPTION UNIT QTY. UNIT PRICE QTY. TOTAL PRICE QTY. TOTAL PRICE THIS PERIODORIGINAL CONTRACT TOTAL TO DATE 3 REOPEN SERVICE EA 15.00 75.00 1.00 $75.00 1.00 $75.00 4 REMOVE PROTRUDING TAP HR 1.00 250.00 0.00 $0.00 0.00 $0.00 SCHEDULE 6.0 - ALTERNATE D BID -- TOTAL $7,140.60 $7,140.60 SCHEDULE 7.0 - ALTERNATE E BID SEWER LINING 1 18 INCH - CIPP LINING LF 164.00 58.20 0.00 $0.00 0.00 $0.00 SCHEDULE 7.0 - ALTERNATE E BID -- TOTAL $0.00 $0.00 BID SUMMARY SCHEDULE 1.0 - BASE BID SEWER LINING -- TOTAL $0.00 $0.00 SCHEDULE 2.0 - BASE BID MANHOLE SEALING -- TOTAL $2,325.00 $2,325.00 SCHEDULE 3.0 - ALTERNATE A BID-- TOTAL $36,996.60 $36,996.60 SCHEDULE 4.0 - ALTERNATE B BID -- TOTAL $17,500.30 $17,500.30 SCHEDULE 5.0 - ALTERNATE C BID -- TOTAL $202.50 $202.50 SCHEDULE 6.0 - ALTERNATE D BID -- TOTAL $7,140.60 $7,140.60 SCHEDULE 7.0 - ALTERNATE E BID -- TOTAL $0.00 $0.00 TOTAL BID SUMMARY THIS PERIOD $64,165.00 TOTAL BID SUMMARY TO DATE $64,165.00 AMOUNT EARNED AMOUNT RETAINED MATERIAL ON SITE MATERIAL DEDUCT. PREVIOUS PAYMENTS AMOUNT DUE TOTAL THIS PERIOD $64,165.00 $3,208.24 $0.00 $0.00 ********************************** $60,956.75 $0.00 $0.00 $60,956.75 $0.00 TOTAL TO DATE $64,165.00 THIS PERIOD TOTAL TO DATE $3,208.24 2 City of Arden Hills City Council Meeting for October 26, 2015 P:\Planning\Planning Cases\2015\PC 15-016 - Arden Plaza - Final PUD Phase III\Memos_Reports_15-016 Page 1 of 2 CONSENT ITEM – 6C MEMORANDUM DATE: October 26, 2015 TO: Honorable Mayor and City Councilmembers Sue Iverson, Acting City Administrator FROM: Matthew Bachler, Associate Planner SUBJECT: Planning Case #15-016 Applicant: Hemisphere Restaurant Partners Property Location: 3561 Lexington Avenue North Subject: Arden Plaza Planned Unit Development Agreement – Fourth Amendment Requested Action Motion to approve Arden Plaza Planned Unit Development Agreement – Fourth Amendment, based on the August 31, 2015 City Council approval of Planning Case 15-016. Background On August 31, 2015, the City Council approved Final PUD plans for Phase III of the Arden Plaza Master PUD in Planning Case 15-016. Hemisphere Restaurant Partners submitted the Final PUD application for the construction of the Tavern Grill restaurant at 3561 Lexington Avenue North, south of the Walgreens pharmacy in the Arden Plaza retail center. The closing for the development parcel occurred on October 9, 2015, and Arden Plaza, LLC no longer retains ownership of the property. The City Attorney has prepared the Fourth Amendment to the Planned Unit Development Agreement (Attachment A). The document has been reviewed and signed by Hemisphere Restaurant Partners. Financial Surety Revisions As part of their approval of the Final PUD plans, the City Council approved a condition that required Hemisphere Restaurant Partners to provide an escrow in the amount of 25 percent of the City of Arden Hills City Council Meeting for October 26, 2015 P:\Planning\Planning Cases\2015\PC 15-016 - Arden Plaza - Final PUD Phase III\Memos_Reports_15-016 Page 2 of 2 cost of site improvements. The purpose of this escrow was to cover costs incurred by the City related to the review and inspection of the site improvements. The Community Development Department and Public Works Department discussed revising this condition in the PUD Agreement to more closely match the site improvements security recently required for the Johanna Shores Brownstone Apartment project being completed by Presb yterian Homes. The revised condition would require Hemisphere Restaurant Partners to provide an initial deposit of $20,000 for the site improvements escrow with the requirement that if the balance drops below $5,000 the account be replenished to $20,000. The City is able to withhold the final Certificate of Occupancy if the account is not replenished as required. The initial required deposit is expected to cover all costs associated with construction observation. The City Attorney and Hemisphere Restaurant Partners have reviewed and approved the revisions to the original condition. Attachments A. Arden Plaza Planned Unit Development Agreement – Fourth Amendment 183371v6 1 (reserved for recording information) PLANNED UNIT DEVELOPMENT AGREEMENT FOURTH AMENDMENT ARDEN PLAZA (PC# 15-016) THIS PLANNED UNIT DEVELOPMENT AGREEMENT– FOURTH AMENDMENT (“Agreement”) is dated effective ________________, 2015, and is entered into by and between the CITY OF ARDEN HILLS, a Minnesota statutory city, whose address is 1245 West Highway 96, Arden Hills, MN 55112 (“City”) and HRP ARDEN HILLS, LLC, a Minnesota limited liability company, whose address is 1501 Washington Avenue South, Suite 301, Minneapolis, MN 55454-1039 (“Developer” or “Owner”). 1. RECITALS. A. Arden Plaza, LLC, a Minnesota limited liability corporation (“Arden Plaza”) is the record fee owner of property situated in the County of Ramsey, State of Minnesota, and legally described as Lot 3, Block 1, Arden Plaza. Said site is for future development pursuant to 183371v6 2 the terms of an Amended and Restated Master Planned Unit Development Agreement and Phase I Development Contract (Planning Case #14-016). B. On the 10th day of September, 2015, said Lot 3, Block 1, Arden Plaza was subdivided into three smaller parcels and replatted as Arden Plaza 2nd Addition. On the 9th day of October, 2015, STORE Capital Acquisitions, LLC, a Delaware limited liability company (“STORE”) acquired and then leased to Developer one of those parcels for construction of a sit- down restaurant known as The Tavern Grill Restaurant and Bar legally described as: Lot 1, Block 1, Arden Plaza 2nd Addition with a street address of 3561 North Lexington Avenue, Arden Hills, Minnesota (“Property”). C. On the 6th day of July, 2015, Developer, on behalf of Arden Plaza, submitted an application requesting that the City approve a Final Planned Unit Development (“Application”) for the development of a sit-down restaurant, removal of existing parking, retaining wall/fence, and public sidewalk; relocation of storm trunk lines and integrate new building, parking and retaining wall into the existing Arden Plaza shopping center. D. The Application is illustrated and described on the following documents, attached and incorporated as part of Planning Case 15-016, on file and recorded at the City of Arden Hills: 1. Cover Sheet (CS-01) dated 08/14/15 2. Overall Existing Conditions (CS-02) dated 08/14/15 3. Overall PUD Site Plan (CS-03) dated 08/14/15 4. Existing Conditions – Removals (CS-04) dated 08/14/15 5. Site Plan (CS-05) dated 08/14/15 6. Grading, Drainage and Erosion Control Plan (CS-06) dated 08/14/15 183371v6 3 7. Utility Plan dated (CS-07) 08/14/15 8. Site Details (CS-08, CS-09) dated 08/14/15 9. Landscape Plan (LP-01) dated 08/14/15 10. Landscape Details (LP-02) dated 08/14/15 11. 3D Views (SK-00) dated 07/24/15 12. Presentation Plan (SK-02) dated 07/24/15 13. Elevations (SK-03) dated 07/24/15 2. PLANNING COMMISSION REVIEW. On the 5th day of August, 2015, the City Planning Commission reviewed the Application and after considering the Application, the submitted plans, the reports and comments of the City’s staff, the reports and comments of the Developer and Arden Plaza, and other public comments, and subject to conditions, recommended approval of the Application. 3. CITY COUNCIL REVIEW. A. On the 31st day of August, 2015, the Arden Hills City Council reviewed the recommendations of the Planning Commission; the materials and comments submitted by City staff and the its consultants; and the materials and comments submitted by the Developer and Arden Plaza and its consultants. At the conclusion of its review, the City Council approved a Final Planned Unit Development to construct a sit-down restaurant called The Tavern Grill Restaurant and Bar, subject to the terms and conditions contained herein. 4. TERMS AND CONDITIONS. In consideration of the undertakings herein expressed and in compliance with the City’s Development Regulations, the parties agree as follows: 183371v6 4 A. PUD. Developer is hereby authorized and shall construct an approximately 9,500 square foot building with an attached 3,050 square foot outdoor patio area for a restaurant consistent with the plans reviewed and approved by the City. Developer shall comply with all terms and conditions: 1. The Developer shall continue to abide by the conditions of all previous Master PUD Agreements, permits, and reviews, except as hereinafter amended. 2. The Developer shall obtain a building permit within one year of the Final PUD approval or the approval shall expire, unless extended by the City Council prior to the approval’s expiration date. Extension requests must be submitted in writing to the City at least 45 days prior to the expiration date. 3. Prior to the issuance of a building permit, a copy of any necessary supplemental declaration between STORE, Developer and Arden Plaza, LLC addressing site operation issues, such as driveway maintenance, shared parking, and drainage, shall be provided to the City. 4. Final construction plans shall be subject to approval by the Building Official and Fire Marshall prior to the issuance of a building permit. 5. The Developer shall provide the City with a copy of the Rice Creek Watershed District permit for the project prior to the issuance of any development permits. 6. Final grading, drainage, utility, and site plans shall be subject to approval by the City Engineer and City Planner prior to the issuance of a Grading and Erosion Control Permit or other development permits. 7. The Developer shall obtain a right-of-way permit from Ramsey County for the sidewalk construction along Lexington Avenue. 183371v6 5 8. Prior the issuance of a Certificate of Occupancy for the Phase III building: (i) the six-foot wide concrete sidewalk along Lexington Avenue shall be constructed in its entirety as shown on the PUD Master Site Plan; and (ii) four additional handicap parking stalls shall be provided on the east side of the shared parking lot area near the main entrance and accessible to customers of The Tavern Grill Restaurant and Bar. 9. All mechanical equipment, whether ground-mounted or roof-mounted, shall be screened from ground-level view of public streets. Wood screening shall not be permitted. B. Required Improvements. The project shall be completed in accordance with the submitted plans as amended by the conditions of approval. Any significant changes to these plans, as determined by the City Planner, shall require review and approval by the Planning Commission and City Council. C. Required Permits. The applicant shall obtain all necessary permits, including, but not limited to, NPDES, Rice Creek Watershed District, Ramsey County, and City Grading and Erosion Control Permits. Copies of all necessary permits shall be submitted to the City prior to the issuance of any development permits. D. Security. (1) The Developer shall submit a financial surety in the amount of 125% of the estimated costs of site improvements including grading, utilities, and paving, prior to the issuance of any development permits. The financial surety shall be in the form of a letter of credit issued by a FDIC-insured Minnesota bank, and be in a form acceptable to the City. The purpose of the letter of credit is to ensure that site improvements are completed in the event that the Developer defaults on this Agreement. 183371v6 6 (2) The Developer shall submit a financial surety in the amount of 125% of the estimated costs of landscaping prior to the issuance of any development permits. The financial surety shall be in the form of a letter of credit issued by a FDIC-insured Minnesota bank. The purpose of the letter of credit is to ensure that landscaping is completed in the event that the Developer defaults on this Agreement. The City will hold the letter of credit for two years after the installation of landscaping. The letter of credit should not expire during the two- year period. E. Escrow. (1) The Developer shall submit a cash escrow for site improvements, including grading, utilities, and paving, in the amount of $20,000 prior to the issuance of any development permits. The escrow will be used for City costs related to review, approval, and inspection of site improvements or any costs incurred by the City in the event of a default by Developer. If at any time during the course of construction on the project the amount in the account is reduced to below $5,000, the Developer shall replenish the account to not less than $20,000. In the event there is a failure to replenish the account in accordance with the terms of the Agreement, the City has the right to withhold the issuance of a Certificate of Occupancy until the deficiency is paid. Upon completion of the project, payment of all outstanding bills and satisfaction of this Agreement, the City shall refund the remainder of the account to the Developer. (2) The Developer shall submit a cash escrow in the amount of 25% of the estimated costs of landscaping prior to the issuance of any development permits. The escrow will be held by the City for two years after installation of landscaping and used for City costs related to review, approval, and inspection of landscaping, or default by Developer. 183371v6 7 F. Binding Effect. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, representatives, successors and assigns of the parties hereto and shall be binding upon all future owners of all or any part of the Property. This Agreement, at the option of the City, shall be placed of record so as to give notice thereto to any subsequent purchasers and encumbrances of all or any part of the Property and all recording fees, if any, shall be paid by the Developer. G. Default. The occurrence of any of the following shall be considered an “Event of Default” in the terms and conditions contained in this Agreement: (1) Failure of Developer to comply with any of the terms and conditions contained in this Agreement if Developer fails to correct such failure within thirty (30) days after receiving written notice of such failure from the City, or if such failure cannot be reasonably cured within such thirty (30) day period, then the failure of the Developer to promptly commence the correction of such failure or to complete the correction of such failure within a reasonable period of time. (2) The failure of Developer to comply with any applicable ordinance or statute with respect to the development of the Property. H. Remedies. Upon the occurrence of any Event of Default, the City, in addition to any other remedy which may be available to it, shall be permitted to do any of the following: (1) City may make advances or take other steps to cure the default, and, where necessary, enter the Property for that purpose. Developer shall pay all reasonable sums so advanced or reasonable expenses incurred by the City, upon demand, with interest from the dates of such advances or expenses at the rate of 10 percent per annum. No action taken by the City pursuant to this section shall be deemed to relieve Developer from curing any such default to the 183371v6 8 extent that it is not cured by the City or from any other default hereunder. The City shall not be obligated, by virtue of the existence or exercise of this right, to perform any such act or cure any such default. Developer shall save, indemnify, and hold harmless, including reasonable attorney fees, the City from any liability or other damages which may be incurred as a result of the exercise of the City's rights pursuant to this section, other than if arising, in whole or in part, because of the City’s negligence or willful misconduct. (2) Obtain an Order from a Court of competent jurisdiction requiring Developer to specifically perform its obligations pursuant to the terms and provisions of this Agreement. (3) Exercise any other remedies which may be available to it including an action for damages. (4) Withhold the issuance of any or all building permits and/or prohibit the occupancy of all building(s) for which permits have been issued. (5) In addition to the remedies and amounts payable as set forth herein, upon the occurrence of an Event of Default, Developer shall pay to the City all reasonable fees and expenses, including reasonable attorney, engineering and consulting fees, incurred by the City as a result of the Event of Default, whether or not a lawsuit or other action is formally taken. IN WITNESS WHEREOF, the above-named parties have caused this Agreement to be executed as of the date and year first above written. [Remainder of page intentionally left blank. Signatures on next page.] 183371v6 9 CITY OF ARDEN HILLS By: ______________________________________ David Grant, Mayor (SEAL) And _____________________________________ Amy Dietl, City Clerk STATE OF MINNESOTA ) ( ss. COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this _______ day of _________________, 20___, by David Grant and by Amy Dietl, respectively the Mayor and City Clerk of the City of Arden Hills, a Minnesota statutory city, on behalf of the City and pursuant to the authority granted by its City Council. __________________________________________ Notary Public 183371v6 10 HRP ARDEN HILLS, LLC a Minnesota limited liability company By: ______________________________________ ______________________________ Its _________________________ STATE OF MINNESOTA ) ( ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _______ day of _________________, 20___, by ________________________, the __________________of HRP ARDEN HILLS, LLC, a Minnesota limited liability company, on behalf of the limited liability company. __________________________________________ Notary Public DRAFTED BY: Campbell, Knutson Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 (JJJ) 183371v6 11 FEE OWNER CONSENT TO PLANNED UNIT DEVELOPMENT AGREEMENT FOURTH AMENDMENT ARDEN PLAZA (PC# 15-016) STORE CAPITAL ACQUISITIONS, LLC, a Delaware limited liability company, fee owner of all or part of the subject property legal described as Lot 1, Block 1, Arden Plaza 2nd Addition, Ramsey County, Minnesota, the development of which is governed by the foregoing Planned Unit Development Agreement, Fourth Amendment, affirms and consents to the provisions thereof and agrees to be bound by the provisions as the same may apply to that portion of the subject property owned by it. Dated this _____ day of ____________, 20__. STORE CAPITAL ACQUISITIONS, LLC By: ______________________________________ _____________________________ [print name] Its ___________________________ STATE OF ______________ ) ( ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of ____________ 20__, by ______________________________, the _____________________ Store Capital Acquisitions, LLC, a Delaware limited liability company, on behalf of said limited liability company. ________________________________________ Notary Public DRAFTED BY: Campbell, Knutson, P.A. Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 (JJJ) 183371v6 12 CITIBANK N.A. MORTGAGE CONSENT TO PLANNED UNIT DEVELOPMENT AGREEMENT FOURTH AMENDMENT ARDEN PLAZA (PC# 15-016) CITIBANK N.A., as mortgagee for the property situated in the County of Ramsey, State of Minnesota, and legally described as: Lot 1, Block 1, Arden Plaza 2nd Addition (a portion of the former Lot 3, Block 1, Arden Plaza) which deed was recorded as Ramsey County document number __________, the development of which is governed by the foregoing Planned Unit Development Agreement, Fourth Amendment affirms and consents to the provisions thereof and agrees to be bound by the provisions as the same may apply to that portion of the subject property owned by it and agrees that the Planned Unit Development Agreement, Fourth Amendment, shall remain in full force and effect, even if it forecloses on its mortgage. Dated this ___ day of ___________, 2015. CITIBANK N.A. By: STORE Capital Corporation, a Maryland corporation, its attorney-in-fact By:_____________________________________ Name:_________________________________ Its:_____________________________________ State of ARIZONA : :ss County of MARICOPA : On this, the ____ day of _______________, 2015, before me, the undersigned Notary Public, personally appeared _______________________________, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and who acknowledged to me that he/she is an officer of STORE Capital Corporation, a Maryland corporation, as attorney-in-fact, on behalf of Citibank, N.A., in the capacity stated and that he/she executed the within instrument in such capacity for the purposes therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and official seal. 181284v6 ________________________________________ Notary Public My Commission Expires: DRAFTED BY: Campbell, Knutson, P.A. Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 (JJJ) CONSENT ITEM – 6D MEMORANDUM DATE: October 26, 2015 TO: Honorable Mayor and City Council Sue Iverson, Acting City Administrator FROM: Dave Perrault, Finance Analyst SUBJECT: 2015 3rd Quarter Actuals Background/Discussion Attached are the 3rd Quarter Actuals for 2015. Overall, expenditures are running below what was budgeted, while revenues are on-track. Please remember that we receive our revenue from property taxes in July and December, therefore property tax revenue for the second half of the year is not reflected in these reports. Governmental accounting is not done on an accrual basis, the numbers reflect what was actually taken in as revenue or paid out as expenditures thru September 30, 2015. Accruals, deferred revenue adjustments, etc. are only done at year-end. General Fund expenditures from operating activities are running at, or slightly below, budget estimates (Note: percentages look lower because property taxes, liquor licenses, etc are collected at year-end). An Investment Portfolio has also been included with these financial reports. Per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At September 30, 2015 – this rate was 0.05% and our portfolio is averaging 2.007%. All of our investments are in government secured or government backed deposits. The section listed at the top of the portfolio are the “liquid” investments that we can access at any time. As we try to stay diversified in this area we will be transferring between these accounts. We are working on cash flows with the PMP and other CIP projects, along with the utility billing cycles to determine how much and when we can invest. Attachments Attachment A: Investment Portfolio Analysis Attachment B: General Fund Revenues and Expenditures Summary Attachment C: City-Wide Revenues and Expenditures Summary Staff Recommendation Staff requests that Council accept the 3rd Quarter 2015 Financial Reports. DATE: October 26, 2015 TO: Honorable Mayor and City Councilmembers Sue Iverson, Acting City Administrator FROM: Sara Grant, Parks and Recreation Coordinator SUBJECT: Resolution No. 2015-046: Appointing Josh Bloyer and Keri Bloyer to serve on the Parks, Trails and Recreation Committee for a term expiring December 31, 2018 Background The Parks Trails and Recreation Committee (PTRC) currently has six members. The guidelines state that this committee can have up to twelve members. Therefore, the PTRC has six current vacancies. Staff recently received two applications for these vacancies from Josh Bloyer and Keri Bloyer. A panel of Council Liaison Brenda Holden, PTRC Chair Rich Straumann, Staff Member Aaron Thelen, and I reviewed the applications and decided to interview Mr. and Mrs. Bloyer. The panel conducted an interview of Josh and Keri Bloyer on Tuesday, October 20, 2015. After completing the interview, the panel recommends (Resolution 2015-046 - Attachment B) Josh and Keri Bloyer for appointment to the PTRC. The application for Mr. and Mrs. Bloyer has been included for your review (Attachment A). Committee terms rotate and the two openings have a three year term expiring on December 31, 2018. Mayor Grant recommends the approval of the appointments of both Josh Bloyer and Keri Bloyer to the Parks, Trails and Recreation Committee. Recommended Action Motion to approve Resolution No. 2015-046: Appointing Josh Bloyer and Keri Bloyer to the Parks Trails and Recreation Committee (PTRC) for a term expiring December 31, 2018. Attachments Attachment A: Resolution 2015-046 Attachment B: Josh Bloyer and Keri Bloyer Applications CONSENT ITEM – 6E (first item) MEMORANDUM CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 2015-046 A RESOLUTION APPOINTING JOSH BLOYER AND KERI BLOYER TO THE PARKS TRAILS AND RECREATION COMMITTEE (PTRC) FOR A TERM EXPIRING DECEMBER 31, 2018. WHEREAS, the City Council appoints residents to serve in an advisory capacity to the City Council regarding parks, trails, and recreation issues; THEREFORE, BE IT RESOLVED: The City Council appoints Josh Bloyer and Keri Bloyer to serve on the PTRC for a term expiring on December 31, 2018. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 26TH DAY OF OCTOBER, 2015 _________________________________________ David Grant, Mayor ATTEST: _______________________________________ Amy Dietl, City Clerk lt EN HILLS City Commission/Committee Application Form Or apply online at http://www cityofardenhills ore/FormCenter/General-Forms-3/City- Co mmisionCom mittee-Application-Form-54 Date: V l s General Information Name: g(oyel Last First M.I. Address: nn1 Ct U(O U pan f Ck City, State,ZIP: /-F rden 4; 115 Vi!lI Phone Numbers: Home: t bt -357- Work: Fax: Fax: Email Address: Committees If you wish to be considered for more than one committee,please order in number of preference. Communications Committee(Newsletter) Parks,Trails, &Recreation(PTRC) Economic Development Commission(EDC) Planning Commission Financial Planning and Analysis Committee(FPAC) Special Interests As the Council prioritizes its goals,it may create additional/new committees or task forces from time to time. If you have other specific areas or topics of interest please indicate those interests and we will retain your application for future openings in those areas as new committees are created. Other Interests Personal Information List your work experience. aytr +NJ- pass` vel s , sTicegro%dgdj%A1 ;roM 4 ta;utirs j a (Uo h wts tcrn gP..•-I ri_ Via v c w rlrtevt 7/1'' C 00 Ftv lr,AAMtr' QLISA now at 5^6y4M,t-t MPCL-1 qs City Committee Application Form Page I of 2 P, M-tdi N t- (y"tir-;- List any Civic, Professional,and Community Activity involvement. MAM es j e A\-r faMMun;,. &w4s G peJ 1 wj loco. s,o\3 b 1c. T- warGcro( n; r. ,,. - ;. 44-c sr rA«Jf d L- ji't Y. Why do you want to be on a committee? Me e: li am 44'.-A, 'Plrt " A 1" What skills,strengths,or abilities do you believe you will add to the committee? M.s- r ra 3$a-t.t ,- lku.c c••a..4 t -:a-. 6t PO114J rk'd' V c hjap( on C01K M&W hoc Ah 014 tr/4 V%ct ;- Ifidn, fi foot rccr ,.1 sO.c.r .yOLA-J List any additional comments: 1 References. G 7/ Name Address Phone Number Please return this form along with a letter of interest and your current resume to: City of Arden Hills 1245 West Highway 96 Arden Hills,MN 55112 Attn: City Clerk Phone: 651.792.7800 Fax: 651.634.5137 Note: Please be advised that per Minnesota Statute 13.601, Subd. 3,the following information is considered public for applicants to a public committee or commission: name, city,education, employment record,volunteer experience. once an individual has been appointed to a public committee or commission, all information on this application will be considered public. City Committee Application Form Page 2 of 2 lt 2WEN HILLS City Commission/Committee Application Form Or apply online at http•//www cityofardenhills ore/FormCenter/Cencral-Forms-3/City- CommisionCommittee-Application-Form-54 Date: General Information I Name: 6[ v Last U f First M.I. Address: 19l 0 INJI City, State,ZIP: 0A Q ns j 1.( N E6051 Phone Numbers: Home: bl;t — 340 ' 1 37 Work: Fax: i Fax: Email Address: Committees If you wish to be considered for more than one committee.please order in number of preference. Communications Committee(Newsletter) Parks,Trails,&Recreation(PTRC) Economic Development Commission (EDC) Planning Commission Financial Planning and Analysis Committee(FPAC) Special Interests As the Council prioritizes its goals,it may create additional new committees or task forces from time to time. If you have other specific areas or topics of interest please indicate those interests and we will retain your application for future openings in those areas as new committees are created. Other Interests Personal Information List your work experience. Ci tYl fiYu 5 • ?}YL- 2•S 1 j(L, U+/Q- IGIJt-,1/l FZOY17 City Committee Application Form 61 ^e l U Page 1 of 2 J 71 List any Civic,Professional, and Community Activity involvement. Why do you want to be on a committee? Lab What skills,strengths,or abilities do you believe you will add to the committee? T be ^rvy„oZ ovr e' aA5 ,"A +r-;15 wS :r't" A&I*C! 1 I -t cam, des. tim -b M-4Ae Thr r 2 -feelIjI _ br•` >, a vaQ —PSS-CG,y 'o t I p re/3e, oe,r r s 2'k r• I List any additional comments: 1T et,, verr 2xc ffv be Pal`-f of pTRG ctlSo a e eraC.C te Gt CS 01 .)Oe T v4 • i f I i Gin G v*' .`S ;P'A 6e, 4 References. Please return this form along with a letter of interest and your current resume to: City of Arden Hills 1245 West Highway 96 Arden Hills,MN 55112 Attn: City Clerk Phone: 651.792.7800 Fax: 651.634.5137 Note: Please be advised that per Minnesota Statute 13.601, Subd. 3, the following information is considered public for applicants to a public committee or commission: name, city, education, employment record,volunteer experience. Once an individual has been appointed to a public committee or commission, all information on this application will be considered public. City Committee Application Form Page 2 of 2 DATE: October 26, 2015 TO: Honorable Mayor and City Councilmembers Sue Iverson, Acting City Administrator FROM: Sara Grant, Parks and Recreation Coordinator SUBJECT: Appointment of Rich Straumann as Chair of the Parks, Trails and Recreation Committee (PTRC) Background Jennifer Stephens (PTRC) chair resigned from the committee. Her resignation not only created a vacancy on the Committee but has also created a vacant chair position. Per the Parks , Trails and Recreation Committee Liaison, Councilmember Holden, long standing Committee Member Rich Straumann has volunteered to fill the role of the Parks, Trails and Recreation Committee Chair. Mr. Straumann term expires December 31, 2016. Mayor Grant recommends the appointment of Rich Straumann as Chair of the Parks, Trails and Recreation Committee. Recommended Action It is recommended that the City Council approve Resolution 2015-047 appointing Rich Straumann as Chair of the Parks Trails and Recreation Committee with a term expiration of December 31, 2016. Attachment Attachment A: Resolution 2015-047 CONSENT ITEM – 6E (second item) MEMORANDUM CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 2015-047 A RESOLUTION APPOINTING RICH STRAUMANN TO THE PARKS TRAILS AND RECREATION COMMITTEE (PTRC) FOR A TERM EXPIRING DECEMBER 31, 2018. WHEREAS, the City Council appoints residents to serve in an advisory capacity to the City Council regarding parks, trails, and recreation issues; THEREFORE, BE IT RESOLVED: The City Council appoints Rich Straumann to serve as the PTRC Chair for a term expiring on December 31, 2016. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 26TH DAY OF OCTOBER, 2015 _________________________________________ David Grant, Mayor ATTEST: _______________________________________ Amy Dietl, City Clerk City Council Meeting P:\Admin\Council\Agendas & Packet Information\2015\10-26-15-R\Sue\Liability Insurance\2015_Liability_Coverage_Limits.doc Page 1 of 1 CONSENT ITEM – 6F MEMORANDUM DATE: October 26, 2015 TO: Honorable Mayor and City Council Members FROM: Sue Iverson, Acting City Administrator Director of Finance and Administrative Services SUBJECT: Resolution 2015-045: Resolution Accepting the Liability Coverage Limits from the League of Minnesota Cities Insurance Trust (LMCIT) for 2016 Background Each year the City Council is required to decide whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. In past history, the City has not waived the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. (This would mean that the City accepts liability coverage limits of $2,500,000.) Council Action A motion to approve Resolution 2015-045, regarding no-waiver of the statutory liability limits and accepting the liability coverage limits from the League of Minnesota Cities Insurance Trust (LMCIT) for 2016. Attachment Attachment A: Resolution 2015-045 CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION No. 2015-045 Accepting the Liability Coverage Limits from the League of Minnesota Cities Insurance Trust (LMCIT) WHEREAS, the City of Arden Hills DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes 466.04, THEREFORE, BE IT RESOLVED: The City of Arden Hills accepts liability coverage limits of two million, five hundred thousand dollars and zero cents ($2,500,000.00) from the League of Minnesota Cities Insurance Trust (LMCIT) for calendar year 2016. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 26th DAY OF OCTOBER, 2015. _________________________________________ David Grant, Mayor ATTEST: _______________________________________ Amy Dietl, City Clerk PUBLIC HEARING – 8A MEMORANDUM DATE: October 26, 2015 TO: Honorable Mayor and City Council Members FROM: Sue Iverson, Acting City Administrator Director of Finance and Administrative Services SUBJECT: CenturyLink Cable Franchise INTRODUCTION The City is one of nine member cities of the North Suburban Communications Commission (the “NSCC”). Following the submission of an application for a cable television franchise for each member city of the NSCC, the above-entitled matter initially came before the NSCC for a public hearing on Thursday, March 5, 2015, at the NSCC’s Office in Roseville. The public hearing was held open through Friday, March 13, 2015, for the purpose of allowing additional written public comments. Following the public hearing, the NSCC’s Executive Director prepared a detailed report entitled “Staff Report on CenturyLink Cable Franchise Application” (the “Staff Report”). The NSCC received and filed the Staff Report and directed NSCC staff to negotiate a cable television franchise with CenturyLink. NSCC staff negotiated a cable television franchise with CenturyLink and presented it to the NSCC on October 7, 2015. The NSCC adopted a Findings of Fact and Recommendation on October 7, 2015, which recommended approval of the negotiated cable television franchise with CenturyLink by each member city. The CenturyLink Cable Television Franchise is now before the City Council for consideration. DISCUSSION A representative from NSCC will be at the meeting to answer any questions and to speak on this item. Supporting information On February 20, 2015, the NSCC received a cable franchise application covering each member city from CenturyLink. Comcast Cable currently has a non-exclusive franchise agreement with the City, which means the City Council may grant additional franchises to provide cable service in the City. A public hearing on the application was held on March 5, 2015, and additional written comments from the public were accepted through March 13, 2015. Following the public hearing, staff prepared a Staff Report (“Report”), which recommended that the NSCC receive and file the Report and direct staff to negotiate a cable franchise with CenturyLink, consistent with the Report. On April 10, 2015, the NSCC adopted the recommendation. This action did not approve a franchise. The NSCC’s outside attorney, Mike Bradley, Bradley Hagen & Gullikson, LLC, in consultation with NSCC Executive Director, Coralie Wilson, engaged in cable franchise negotiations with CenturyLink. The attached cable franchise is the product of those negotiations. In reviewing the CenturyLink cable franchise, there are two primary issues to consider. The first is whether federal law preempts Minnesota’s 5-Year Build Statute. Minnesota Statues Section 238.084, subdivision 1(m) requires all initial franchises to have a provision that requires a cable operator build out its cable system at a rate of 50 plant miles per year and that its cable system be substantially complete within 5 years. As the Report indicated, CenturyLink claims that this 5-Year Build Statute is an unlawful barrier to entry and is preempted by federal law and an FCC decision referred to as the 621 Order. The Report also indicated that there is no case law in Minnesota directly addressing preemption of the 5-Year Build Statute. The Report concluded that CenturyLink has a good faith basis on its preemption claim and is willing to indemnify the NSCC and its Member Cities related to any litigation surrounding the grant of a franchise to CenturyLink. CenturyLink refused to incorporate the language of the 5-Year Build Statute in the proposed franchise, based on its preemption argument. As described below, the proposed CenturyLink franchise ordinance has provisions for a reasonable build-out of the City. The proposed franchise ordinance also has provision for defense and indemnification of the NSCC and the City regarding this issue. The next issue is whether the CenturyLink franchise contains a reasonable build-out schedule. The franchise ordinance recognizes that CenturyLink has already constructed a legacy communications system throughout the City, which is capable of providing telephone and internet service. The build-out provisions in the franchise are related to upgrades of the legacy system to make it capable of providing cable service to all area residents. The proposed CenturyLink Franchise addresses build-out as follows:  Complete Equitable Build-Out. Goal is to build-out the entire City over 5- year term, based on market success, with a significant investment targeted to areas below the median income in the City.  Initial Minimum Build-Out Commitment. 15% of the city over two years. o CenturyLink must make its best effort to complete the initial deployment in a shorter period of time. o Equitable Deployment to households in the City. o Must include a significant number of households below the medium income of the City. o CenturyLink permitted to serve more households than the initial commitment.  Quarterly Meetings. Starting January 1, 2016, CenturyLink must meet with the City [and/or City designee at NSCC] and show to the City’s satisfaction: o Number of households capable of being served and actually served. o Compliance with anti-redlining requirements. o Maps and documentation “showing exactly where within the City the Grantee is currently providing cable service.”  Additional Build-Out Based on Market Success. Starting January 1, 2016, the CenturyLink build-out commitment will increase if its penetration rate is at least 27.5% in the areas that it is offering service. o Example: If CenturyLink is offering service to 60% of a City and CenturyLink has penetration of 30% in that area, then the build-out commitment will increase by 15%, to cover 75% of the City. o Additional build-out commitment continues until all households are served.  Line Extension. No initial mandatory line extension, unless CenturyLink becomes the dominate cable provider. Then the City decides CenturyLink’s build-out schedule, including a density requirement that is the same or similar to Comcast’s density requirement. The City may consider whether the Initial Minimum Build-Out Commitment of 15% of each member city over two years is reasonable. CenturyLink claimed in its application that it initially would be providing service to a greater portion of the City. During negotiations however, CenturyLink was concerned about having too high a commitment in the franchise ordinance and that cities in Minnesota and elsewhere would use a greater commitment as a new standard. CenturyLink refused to increase the Initial Minimum Build-Out Commitment above 15%. However, the provisions related to Quarterly Meetings and Additional Build-Out Based on Market Success are designed to quicken and increase CenturyLink’s initial Build-Out Commitment. The franchise also has provisions requiring that residents of each member city be included in an equitable initial build commitment and that a significant number of households below the medium income of the city also be included in the initial build-out. CenturyLink must also use its best efforts to complete its initial build faster than two years. Another issue related to the reasonable build-out is whether the penetration rate triggering additional build-out is reasonable. CenturyLink claims that it needs a penetration rate of 27.5% in order to commit to an additional mandatory build in the City. This penetration number is based on internal CenturyLink return on investment models. Given Comcast’s penetration rate in the City is around 40-50%, a penetration rate of 27.5% may be difficult to obtain and, therefore, it is possible that CenturyLink may not be required to build-out more than its initial commitment. Economic redlining or “cherry picking” was identified as a concern through the public hearing process. As the Report noted, cherry picking is prohibited by the Federal Cable Act. See 47 U.S.C. § 541(a)(3). The proposed CenturyLink franchise prohibits cherry picking, identical to the Comcast franchise. To ensure compliance, CenturyLink has an additional $500 per day penalty/liquidated damage for violating the build-out and economic redlining provisions of the Franchise. The Report also described the State’s level playing field statute, which requires competitive cable franchises not to be more favorable or less burdensome than an incumbent’s franchise as it relates to franchise fees, support of public, educational, and governmental access television and the area served. CenturyLink is required to pay a franchise fee of 5% of its Gross Revenues (Identical to Comcast Franchise). The Franchise Area is the entire city (Identical to Comcast Franchise). The Public, Educational, and Governmental (“PEG”) Access Requirements of the CenturyLink franchise meet, and in places exceed, Comcast’s franchise commitments. The CenturyLink PEG commitments are summarized as follows:  Number of Access Channels. CenturyLink will provide 16 Access Channels (greater overall number of Access Channels than Comcast).  Format of Access Channels. CenturyLink will provide all 16 Access Channels in HD if the Commission sends them in HD format (Comcast will provide one Access Channels in HD over time).  Electronic Programming Guide. CenturyLink will have similar requirement as Comcast.  Channel Placement. CenturyLink will make all Access Channels accessible at Channel 15 through the “North Suburban Mosaic.” The Access Channels will be physically located in the 8000s. (Comcast has no mosaic and is required to have the HD Access Channel located near the broadcast channels).  Public Service Announcements. CenturyLink will allow the Commission to air PSA’s on non-Access channels during periods of unsold/unused airtime (Exceeds Comcast’s commitment).  Video On-Demand. CenturyLink will provide 25 hours of VOD per member city (Exceeds Comcast’s PEG commitment).  PEG Support. CenturyLink will pay a PEG Fee in support of the Access Channels of $4.15 (This fee is equal to the fee that Comcast currently passes through to its subscribers in the City). Overall, the CenturyLink cable franchise is substantially similar to the Comcast cable franchise in most respects. The following highlights the differences between the two cable franchises:  Term. CenturyLink’s Franchise term is 5 years. Comcast’s term is 15+ years.  Indemnification of the City/NSCC. CenturyLink has an additional indemnification commitment that Comcast does not have.  Access Channel Commitments. CenturyLink may provide more channels in HD than Comcast. CenturyLink is providing VOD programming, while Comcast is not providing any. PEG support may be used for capital and operational support under the CenturyLink franchise.  Twin Cities Metro PEG Interconnect Network. CenturyLink will provide a network to allow cities throughout the metro area to share live programming with one another. We believe this will be the only such network in the country.  Penalties/Liquidated Damages. CenturyLink franchise has additional damages for violating the Build-Out and Economic Redlining provisions of the franchise that is not in the Comcast franchise.  Build-Out. CenturyLink Franchise has a reasonable build-out commitment based on market success. Comcast does not have a build-out provision, as it built-out the member cities many years ago.  Line Extension. The CenturyLink franchise does not have an immediate line extension requirement. The Commission will determine a line extension obligation similar to Comcast’s line extension if CenturyLink obtains a 50% penetration level in the city. Comcast has a line extension requirement. Since a cable franchise is granted by ordinance, the City must hold a public hearing on the cable franchise ordinance. At a following meeting, the City should take action to approve or deny the proposed franchise ordinance and direct staff to draft findings consistent with its decision. RECOMMENDATION 1. That the City hold a public hearing on the CenturyLink Cable Franchise Ordinance. 2. At a following Council Meeting, take action on the CenturyLink Cable Franchise Ordinance. 3. Adopt written findings of fact to support the action taken (when adopting the Ordinance). ATTACHMENTS Attachment A: Draft copy of Ordinance No. 2015-008. Attachment B: Proposed Findings of Fact. Attachment C: Draft copy of letter from CenturyLink to Michael Bradley. ORDINANCE NO. 2015-008 CITY OF ARDEN HILLS CABLE TELEVISION FRANCHISE ORDINANCE Date: _____________________, 2015 Prepared by: Michael R. Bradley Bradley Hagen & Gullikson, LLC 1976 Wooddale Drive, Suite 3A Woodbury, MN 55125 Telephone: (651) 379-0900 E-Mail:mike@bradleylawmn.com Table of Contents STATEMENT OF INTENT AND PURPOSE ............................................................................... 1 SECTION 1. SHORT TITLE AND DEFINITIONS ..................................................................... 1 1. Short Title ............................................................................................................................... 1 2. Definitions............................................................................................................................... 1 SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS................................ 5 1. Grant of Franchise................................................................................................................... 5 2. Grant of Nonexclusive Authority............................................................................................ 7 3. Lease or Assignment Prohibited ............................................................................................. 7 4. Franchise Term ....................................................................................................................... 7 5. Compliance with Applicable Laws, Resolutions and Ordinances .......................................... 7 6. Rules of Grantee ..................................................................................................................... 8 7. Territorial Area Involved ........................................................................................................ 9 8. Written Notice ....................................................................................................................... 10 SECTION 3. CONSTRUCTION STANDARDS ........................................................................ 11 1. Registration, Permits and Construction Codes .................................................................. 11 2. Repair of Rights-of-Way and Property .............................................................................. 11 3. Conditions on Right-of-Way Use ...................................................................................... 12 4. Undergrounding of Cable .................................................................................................. 12 5. Installation of Facilities...................................................................................................... 13 6. Safety Requirements .......................................................................................................... 13 SECTION 4. DESIGN PROVISIONS ........................................................................................ 13 1. System Design. .................................................................................................................. 13 2. Interruption of Service ....................................................................................................... 13 3. Technical Standards ........................................................................................................... 14 4. Special Testing ................................................................................................................... 14 5. Drop Testing and Replacement .......................................................................................... 14 6. FCC Reports....................................................................................................................... 14 7. Interconnection .................................................................................................................. 14 8. Nonvoice Return Capability .............................................................................................. 15 9. Lockout Device .................................................................................................................. 15 SECTION 5. SERVICE PROVISIONS ..................................................................................... 15 1. Regulation of Service Rates .................................................................................................. 15 2. Sales Procedures ................................................................................................................... 15 ii 3. Subscriber Inquiry and Complaint Procedures ..................................................................... 15 4. Subscriber Contracts ............................................................................................................. 16 5. Refund Policy........................................................................................................................ 16 6. Late Fees ............................................................................................................................... 16 7. Office Policy ......................................................................................................................... 17 SECTION 6. ACCESS CHANNEL(S) PROVISIONS ............................................................... 17 1. Public, Educational and Government Access ....................................................................... 17 2. Charges for Use..................................................................................................................... 20 3. Access Rules ......................................................................................................................... 20 4. Access Support...................................................................................................................... 20 5. Regional Channel 6 ............................................................................................................... 20 6. State and Federal Law compliance ....................................................................................... 20 7. Future PEG Funding Obligations.......................................................................................... 20 8. Additional Payments ............................................................................................................. 21 SECTION 7. SERVICES TO CITY ............................................................................................ 21 1. Twin Cities Metro PEG Interconnect Network ................................................................. 21 2. Cable Service to Public Buildings ..................................................................................... 21 SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS ................................... 22 1. Administration of Franchise ................................................................................................. 22 2. Delegated Authority .............................................................................................................. 22 3. Franchise Fee ........................................................................................................................ 22 4. Access to Records ................................................................................................................. 24 5. Reports and Maps ................................................................................................................. 24 6. Periodic Evaluation ............................................................................................................... 24 SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS ............................ 25 1. Performance Bond ................................................................................................................ 25 2. Letter of Credit ...................................................................................................................... 26 3. Indemnification of City ......................................................................................................... 28 4. Insurance ............................................................................................................................... 29 SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE ................................................................................................................................ 29 1. City's Right to Revoke .......................................................................................................... 29 2. Procedures for Revocation .................................................................................................... 30 3. Abandonment of Service....................................................................................................... 30 4. Removal After Abandonment, Termination or Forfeiture .................................................... 30 iii 5. Sale or Transfer of Franchise ................................................................................................ 31 SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS ...................................................... 32 1. Discriminatory Practices Prohibited ..................................................................................... 32 2. Subscriber Privacy ................................................................................................................ 33 SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS ....................... 33 1. Unauthorized Connections or Modifications Prohibited ...................................................... 33 2. Removal or Destruction Prohibited ...................................................................................... 33 3. Penalty................................................................................................................................... 34 SECTION 13. MISCELLANEOUS PROVISIONS .................................................................... 34 1. Franchise Renewal ................................................................................................................ 34 2. Work Performed by Others ................................................................................................... 34 3. Amendment of Franchise Ordinance .................................................................................... 34 4. Compliance with Federal, State and Local Laws .................................................................. 34 5. Nonenforcement by City ....................................................................................................... 35 6. Rights Cumulative ................................................................................................................ 35 7. Grantee Acknowledgment of Validity of Franchise ............................................................. 35 8. Force Majeure ....................................................................................................................... 35 SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS ........ 35 1. Publication: Effective Date ................................................................................................... 35 2. Acceptance ............................................................................................................................ 36 EXHIBIT A - INDEMNITY AGREEMENT ....................................................................... Ex. A 1 ORDINANCE NO. 2015-008 AN ORDINANCE GRANTING A FRANCHISE TO QWEST BROADBAND SERVICES, INC., D/B/A CENTURYLINK, TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE COMMUNICATIONS SYSTEM IN THE CITY OF ARDEN HILLS; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM AND THE PUBLIC RIGHTS-OF-WAY IN CONJUNCTION WITH THE CITY’S RIGHT-OF-WAY ORDINANCE, IF ANY, AND PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS HEREIN; The City Council of the City of Arden Hills ordains: STATEMENT OF INTENT AND PURPOSE Qwest Broadband Services, Inc., d/b/a CenturyLink (“Grantee”), applied for a cable franchise to serve the City. The City will adopt separate findings related to the application and the decision to grant a cable franchise to Grantee, which shall be incorporated herewith by reference. The City intends, by the adoption of this Franchise, to bring about competition in the delivery of cable services in the City. Adoption of this Franchise is, in the judgment of the Council, in the best interests of the City and its residents. SECTION 1. SHORT TITLE AND DEFINITIONS 1. Short Title. This Franchise Ordinance shall be known and cited as the CenturyLink Cable Franchise Ordinance. 2. Definitions. For the purposes of this Franchise, the following terms, phrases, words, and their derivations shall have the meaning given herein. When not inconsistent with the context, words in the singular number include the plural number. The word “shall” is always mandatory and not merely directory. The word “may” is directory and discretionary and not mandatory. a. “Basic Cable Service” means any service tier which includes the lawful retransmission of local television broadcast signals and any public, educational, and governmental access programming required by the Franchise to be carried on the basic tier. Basic Cable Service as defined herein shall not be inconsistent with 47 U.S.C. § 543(b)(7). b. “City” means City of Arden Hills, a municipal corporation, in the State of Minnesota, acting by and through its City Council, or its lawfully appointed designee. c. “City Council” means the governing body of the City. 2 d. “Cable Service” or “Service” means the provision of communications and/or entertainment services as “Cable Service” is defined by Minn. Stat. § 238.01 et seq. and 47 U.S.C § 521 et seq., as may be amended from time to time, but including Institutional Network services. Cable Service shall also include any video programming service for which a franchise from a local government is permitted under state law. e. “Cable System” or “System” means a system of antennas, cables, wires, lines, towers, waveguides, or other conductors, Converters, equipment, or facilities located in City and designed and constructed for the purpose of producing, receiving, transmitting, amplifying, or distributing audio, video, and data. System as defined herein shall not be inconsistent with the definitions set forth in Minn. Stat. § 238.02, subd. 3 and 47 U.S.C. § 522(7). This definition shall include any facility that is a “cable system” under federal law or a “cable communications system” under state law. f. “Commercial Need” or “Marketplace Need” means such need or market demand which City and Grantee may jointly determine requires action or performance by Grantee as specifically set forth in this Franchise. Such determination shall be based upon evidence and information presented by City, Grantee and other interested parties at a duly noticed public proceeding. Grantee shall have an opportunity to present evidence regarding the level of market demand, the cost of meeting such demand and the availability of technologies to meet such demand. Any decision regarding Commercial or Marketplace Need which requires action by Grantee shall not be unreasonable. g. “Commission” means the North Suburban Communications Commission, a municipal Joint Powers Commission. h. “Converter” means an electronic device which converts signals to a frequency acceptable to a television receiver of a Subscriber and by an appropriate selector permits a Subscriber to view all Subscriber signals included in the service. i. “Drop” means the cable that connects the ground block on the Subscriber's residence or institution to the nearest feeder cable of the System. j. “FCC” means the Federal Communications Commission and any legally appointed, designated or elected agent or successor. k. “Franchise” or “Cable Franchise” means this ordinance and the regulatory and contractual relationship established hereby. l. “Grantee” is Qwest Broadband Services, Inc., d/b/a CenturyLink, its lawful successors, transferees or assignees. 3 m. “Gross Revenues” shall be defined as and shall be construed broadly to include all revenues derived directly or indirectly by Grantee and/or an Affiliate that is a cable operator of the Cable System, from the operation of Grantee’s Cable System to provide Cable Services within the City (including cash, credits, property or other consideration of any kind or nature). Gross revenues include, by way of illustration and not limitation: monthly fees for Cable Services, regardless of whether such Cable Services are provided to residential or commercial customers, including revenues derived from the provision of all Cable Services (including but not limited to pay or premium Cable Services, digital Cable Services, pay-per- view, pay-per-event and video-on-demand Cable Services); installation, reconnection, downgrade, upgrade or similar charges associated with changes in subscriber Cable Service levels; fees paid to Grantee for channels designated for commercial/leased access use; converter, remote control, lockout device and other Cable Service equipment rentals and/or leases or sales; advertising revenues received or derived by Grantee and/or its Affiliates, including but not limited to, rep fees, Affiliate fees, rebates and commissions, but excluding unaffiliated agency fees; late fees, convenience fees and administrative fees; revenues from program guides; franchise fees; and commissions from home shopping channels and other revenue sharing arrangements. Gross Revenues subject to franchise fees shall include revenues derived from sales of advertising that run on Grantee’s Cable System within the City and shall be allocated on a pro rata basis using total Cable Service subscribers reached by the advertising. Additionally, Grantee agrees that Gross Revenues subject to franchise fees shall include all commissions paid to third parties associated with sales of advertising on the Cable System within the City allocated according to this paragraph using total Cable Service subscribers reached by the advertising. Gross revenues shall not include: actual bad debt write-offs, provided, however, that all or part of any such actual bad debt that is written off but subsequently collected shall be included in Gross Revenues in the period collected; and any taxes on services furnished by Grantee imposed by any municipality, state or other governmental unit, provided that franchise fees shall not be regarded as such a tax. (i) To the extent revenues are received by Grantee for the provision of a discounted bundle of services which includes Cable Services and non- Cable Services, Grantee shall calculate revenues to be included in Gross Revenues using a methodology that allocates revenue on a pro rata basis when comparing the bundled service price and its components to the sum of the most recent published rate card rate for the components, except it is expressly understood that equipment may be subject to inclusion in the bundled price at full rate card value. This calculation shall be applied to every bundled service package containing Cable Service from which Grantee receives or derives revenues in the City, and must be updated within sixty (60) days of the date any rate change for cable and/or non- cable services is implemented for a service package containing Cable Service or the date any rate change is implemented for any service 4 included in a service package that contains Cable Service. The NSCC reserves its right to review and to challenge Grantee’s calculations. (ii) For purposes of this definition, the term “Affiliates” means any person(s) and/or entity(ies) who own or control, are owned or controlled by or are under common ownership or control with Grantee but does not include affiliated entities that are not directly or indirectly involved with the programming, use, management, operation, construction, repair and/or maintenance of Grantee Corporation’s cable systems. (iii) Resolution of any disputes over the classification of revenue should first be attempted by agreement of the Parties, but should no resolution be reached, the Parties agree that reference shall be made to generally accepted accounting principles (“GAAP”) as promulgated and defined by the Financial Accounting Standards Board (“FASB”), Emerging Issues Task Force (“EITF”) and/or the U.S. Securities and Exchange Commission (“SEC”). Notwithstanding the forgoing, the City and/or the Commission 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. n. “Household” means a distinct address in the Qwest Corporation (“QC”) network database, whether a residence or small business, subscribing to or being offered cable service. Grantee represents and warrants that it has access to the QC network database and shall demonstrate to the City’s reasonable satisfaction how the data required in Section 2 are calculated and reported using the QC network database. o. “Installation” means the connection of the System from feeder cable to the point of connection with the Subscriber Converter or other terminal equipment. p. “Lockout Device” means an optional mechanical or electrical accessory to a Subscriber's terminal which inhibits the viewing of a certain program, certain channel, or certain channels provided by way of the Cable Communication System. q. “North Suburbs Access Corporation” means that certain non-profit corporation or its lawful successor, designee, or assignee, which is delegated authority and responsibility for providing certain community programming functions including public access. r. “North Suburban System” means the Cable System located in those municipalities collectively comprising the North Suburban Cable Commission. 5 s. “Pay Television” means the delivery over the System of pay-per-channel or pay- per-program audio-visual signals to Subscribers for a fee or charge, in addition to the charge for Basic Cable Service or Cable Programming Services. t. “Person” is any person, firm, partnership, association, corporation, company, or other legal entity, but does not include the City or Commission. u. “Right-of-Way” or “Rights-of-Way” means the area on, below, or above any real property in City in which the City has an interest including, but not limited to any street, road, highway, alley, sidewalk, parkway, park, skyway, or any other place, area, or real property owned by or under the control of City, including other dedicated Rights-of-Way for travel purposes and utility easements. v. “Right-of-Way Ordinance” means the ordinance codifying requirements regarding regulation, management and use of Rights-of-Way in City, including registration and permitting requirements. w. “Set Top Box” means an electronic device (sometimes referred to as a receiver) which may serve as an interface between a System and a Subscriber’s television monitor and which may convert signals to a frequency acceptable to a television monitor of a Subscriber and may, by an appropriate selector, permit a Subscriber to view all signals of a particular service x. “Subscriber” means any Person who lawfully receives service via the System. In the case of multiple office buildings or multiple dwelling units, the “Subscriber” means the lessee, tenant or occupant. SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS 1. Grant of Franchise. a. This Franchise is granted pursuant to the terms and conditions contained herein. b. Nothing in this Franchise shall be deemed to waive the lawful requirements of any generally applicable City ordinance existing as of the Effective Date. c. Each and every term, provision or condition herein is subject to the provisions of state law, federal law, and local ordinances and regulations. The Municipal Code of the City, as the same may be amended from time to time, is hereby expressly incorporated into this Franchise as if fully set out herein by this reference. Notwithstanding the foregoing, the City may not unilaterally alter the material rights and obligations of Grantee under this Franchise. d. This Franchise shall not be interpreted to prevent the City from imposing additional lawful conditions, including additional compensation conditions for use of the Rights-of-Way, should Grantee provide service other than cable service. 6 e. The parties acknowledge that Grantee intends that Qwest Corporation (“QC”), an affiliate of Grantee, will be primarily responsible for the construction and installation of the facilities in the Rights-of-Way, constituting the cable communications system, which will be utilized by Grantee to provide cable service. Grantee promises, as a condition of exercising the privileges granted by this Franchise, that any affiliate of the Grantee, including QC, directly or indirectly involved in the construction, management, or operation of the cable communications system will comply with all applicable federal, state and local laws, rules and regulations regarding the use of the City’s rights of way. The City agrees that to the extent QC violates any applicable laws, rules and regulations, the City shall first seek compliance directly from QC. In the event, the City cannot resolve these violations or disputes with QC, or any other affiliate of Grantee, then the City may look to Grantee to ensure such compliance. Failure by Grantee to ensure QC’s or any other affiliate’s compliance with applicable laws, rules and regulations shall be deemed a material breach of this Franchise by Grantee. To the extent Grantee constructs and installs facilities in the rights-of- way, such installation will be subject to the terms and conditions contained herein. f. No rights shall pass to Grantee by implication. Without limiting the foregoing, by way of example and not limitation, this Franchise shall not include or be a substitute for: (i) Any other permit or authorization required for the privilege of transacting and carrying on a business within the City that may be required by the ordinances and laws of the City; (ii) Any permit, agreement, or authorization required by the City for Right-of- Way users in connection with operations on or in Rights-of-Way or public property including, by way of example and not limitation, street cut permits; or (iii) Any permits or agreements for occupying any other property of the City or private entities to which access is not specifically granted by this Franchise including, without limitation, permits and agreements for placing devices on poles, in conduits or in or on other structures. g. This Franchise is intended to convey limited rights and interests only as to those Rights-of-Way in which the City has an actual interest. It is not a warranty of title or interest in any Right-of-Way; it does not provide the Grantee with any interest in any particular location within the Right-of-Way; and it does not confer rights other than as expressly provided in the grant hereof. h. This Franchise does not authorize Grantee to provide telecommunications service, or to construct, operate or maintain telecommunications facilities. This Franchise is not a bar to imposition of any lawful conditions on Grantee with respect to 7 telecommunications, whether similar, different or the same as the conditions specified herein. This Franchise does not relieve Grantee of any obligation it may have to obtain from the City an authorization to provide telecommunications services, or to construct, operate or maintain telecommunications facilities, or relieve Grantee of its obligation to comply with any such authorizations that may be lawfully required. 2. Grant of Nonexclusive Authority. a. The Grantee shall have the right and privilege, subject to the permitting and other lawful requirements of City ordinance, rule or procedure, to construct, erect, and maintain, in, upon, along, across, above, over and under the Rights-of-Way in City a Cable System and shall have the right and privilege to provide Cable Service. The System constructed and maintained by Grantee or its agents shall not interfere with other uses of the Rights-of-Way. Grantee shall make use of existing poles and other above and below facilities available to Grantee to the extent it is technically and economically feasible to do so. b. Notwithstanding the above grant to use Rights-of-Way, no Right-of-Way shall be used by Grantee if City determines that such use is inconsistent with the terms, conditions, or provisions by which such Right-of-Way was created or dedicated, or with the present use of the Right-of-Way. c. This Franchise shall be nonexclusive, and City reserves the right to grant a franchise to any Person at any time during the period of this Franchise for the provision of Cable Service. The terms and conditions of any such franchise shall be, when taken as a whole, no less burdensome or more beneficial than those imposed upon Grantee pursuant to this Franchise. 3. Lease or Assignment Prohibited. No Person may lease Grantee’s System for the purpose of providing Service until and unless such Person shall have first obtained and shall currently hold a valid Franchise or other lawful authorization containing substantially similar burdens and obligations to this Franchise. Any assignment of rights under this Franchise shall be subject to and in accordance with the requirements of Section 10, Paragraph 5. 4. Franchise Term. This Franchise shall be in effect for a period of five (5) years from the date of acceptance by Grantee, unless sooner renewed, revoked or terminated as herein provided. 5. Compliance with Applicable Laws, Resolutions and Ordinances. a. The terms of this Franchise shall define the contractual rights and obligations of Grantee with respect to the provision of Cable Service and operation of the System in City. However, the Grantee shall at all times during the term of this Franchise be subject to all lawful exercise of the police power, statutory rights, local ordinance-making authority, and eminent domain rights of City. Except as 8 provided below, any modification or amendment to this Franchise, or the rights or obligations contained herein, must be within the lawful exercise of City’s police power, in which case the provision(s) modified or amended herein shall be specifically referenced in an ordinance of the City authorizing such amendment or modification. This Franchise may also be modified or amended with the written consent of Grantee as provided in Section 13, Paragraph 3 herein. b. Grantee shall comply with the terms of any City ordinance or regulation of general applicability which addresses usage of the Rights-of-Way within City which may have the effect of superseding, modifying or amending the terms of Section 3 and/or Section 8, Paragraph 5(c) herein, except that Grantee shall not, through application of such City ordinance or regulation of Rights-of-Way, be subject to additional burdens with respect to usage of Rights-of-Way which exceed burdens on similarly situated Rights-of-Way users. c. In the event of any conflict between Section 3 and/or Section 8, Paragraph 5(c) of this Franchise and any City ordinance or regulation which addresses usage of the Rights-of-Way, the conflicting terms in Section 3 and/or Section 8, Paragraph 5(c) of this Franchise shall be superseded by such City ordinance or regulation, except that Grantee shall not, through application of such City ordinance or regulation of Rights-of-Way, be subject to additional burdens with respect to usage of Rights-of-Way which exceed burdens on similarly situated Rights-of- Way users. d. In the event any City ordinance or regulation which addresses usage of the Rights-of-Way adds to, modifies, amends, or otherwise differently addresses issues addressed in Section 3 and/or Section 8, Paragraph 5(c) of this Franchise, Grantee shall comply with such ordinance or regulation of general applicability, regardless of which requirement was first adopted except that Grantee shall not, through application of such City ordinance or regulation of Rights-of-Way, be subject to additional burdens with respect to usage of Rights-of-Way which exceed burdens on similarly situated Rights-of-Way users. e. In the event Grantee cannot determine how to comply with any Right-of-Way requirement of City, whether pursuant to this Franchise or other requirement, Grantee shall immediately provide written notice of such question, including Grantee’s proposed interpretation, to the City with copy to the North Suburban Cable Communications Commission, in accordance with Section 2, Paragraph 8. The City or Commission shall provide a written response within fourteen (14) days of receipt indicating how the requirements cited by Grantee apply. Grantee may proceed in accordance with its proposed interpretation in the event a written response is not received within seventeen (17) days of mailing or delivering such written question. 6. Rules of Grantee. The Grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably 9 necessary to enable said Grantee to exercise its rights and perform its obligations under this Franchise and to assure uninterrupted service to each and all of its Subscribers; provided that such rules, regulations, terms and conditions shall not be in conflict with provisions hereto, the rules of the FCC, the laws of the State of Minnesota, City, or any other body having lawful jurisdiction. 7. Territorial Area Involved. This Franchise is granted for the corporate boundaries of City, as it exists from time to time. In the event of annexation by City, or as development occurs, any new territory shall become part of the territory for which this Franchise is granted, subject Paragraph 7(a) (Reasonable Build-Out of the Entire City) below. Access to cable service shall not be denied to any group of potential residential cable Subscribers because of the income of the residents of the area in which such group resides. . a. Reasonable Build-Out of the Entire City. The Parties recognize that Grantee, or its affiliate, has constructed a legacy communications system throughout the City that is capable of providing voice grade service. The Parties further recognize that Grantee or its affiliate must expend a significant amount of capital to upgrade its existing legacy communications system and to construct new facilities to make it capable of providing cable service. Further, there is no promise of revenues from cable service to offset these capital costs. The Parties agree that the following is a reasonable build-out schedule taking into consideration Grantee’s market success and the requirements of Minnesota state law. (i) Complete Equitable Build-Out. Grantee aspires to provide cable service to all households within the City by the end of the initial term of this Franchise. In addition, Grantee commits that a significant portion of its investment will be targeted to areas below the median income in the City. (ii) Initial Minimum Build-Out Commitment. Grantee agrees to be capable of serving a minimum of fifteen percent (15%) of the City’s households with cable service during the first two (2) years of the initial Franchise term, provided, however that Grantee will make its best efforts to complete such deployment within a shorter period of time. This initial minimum build- out commitment shall include deployment to households equitably throughout the City and to a significant number of households below the medium income in the City. Nothing in this Franchise shall restrict Grantee from serving additional households in the City with cable service; (iii) Quarterly Meetings. Commencing January 1, 2016, and continuing throughout the term of this Franchise, Grantee shall meet quarterly with the Executive Director of the Commission. At each quarterly meeting, Grantee shall present information acceptable to the City/Commission (to the reasonable satisfaction of the City/Commission) showing the number of households Grantee is presently capable of serving with cable service and the number of households that Grantee is actually serving with cable service. Grantee shall also present information acceptable to the 10 City/Commission (to the reasonable satisfaction of the City/Commission) that Grantee is equitably serving all portions of the City in compliance with this Section 2, Paragraph 7. In order to permit the City/Commission to monitor and enforce the provisions of this section and other provisions of this Franchise, the Grantee shall promptly, upon reasonable demand, show to the City/Commission (to the City/Commission’s reasonable satisfaction) maps and provide other documentation showing exactly where within the City the Grantee is currently providing cable service; (iv) Additional Build-Out Based on Market Success. If, at any quarterly meeting, Grantee is actually serving twenty seven and one-half percent (27.5%) of the Households capable of receiving cable service, then Grantee agrees the minimum build-out commitment shall increase to include all of the Households then capable of receiving cable service plus an additional fifteen (15%) of the total households in the City, which Grantee agrees to serve within two (2) years from the quarterly meeting; provided, however, the Grantee shall make its best efforts to complete such deployment within a shorter period of time. For example, if, at a quarterly meeting with the Commission’s Executive Director, Grantee shows that it is capable of serving sixty percent of the households in the City with cable service and is actually serving thirty percent of those households with cable service, then Grantee will agree to serve an additional fifteen percent of the total households in the City no later than 2 years after that quarterly meeting (a total of 75% of the total households). This additional build-out based on market success shall continue until every household in the City is served; (v) Line Extension. Grantee shall not have a line extension obligation until the first date by which Grantee is providing Cable Service to more than fifty percent (50%) of all subscribers receiving facilities based cable service from both the Grantee and any other provider(s) of cable service within the City. At that time, the City/Commission, in its reasonable discretion and after meeting with Grantee, shall determine the timeframe to complete deployment to the remaining households in the City, including a density requirement that is the same or similar to the requirement of the incumbent franchised cable operator. 8. Written Notice. All notices, reports, or demands required to be given in writing under this Franchise shall be deemed to be given when delivered personally to any officer of Grantee or City's Administrator of this Franchise or forty-eight (48) hours after it is deposited in the United States mail in a sealed envelope, with registered or certified mail postage prepaid thereon, addressed to the party to whom notice is being given, as follows: If to City: City of Arden Hills 1245 West Highway 96 Arden Hills, Minnesota 55112 11 Attention: City Manager/Administrator With copies to: North Suburban Cable Communications Commission 2670 Arthur Street Roseville, Minnesota 55113 And to: Michael R. Bradley Bradley Hagen & Gullikson, LLC 1976 Wooddale Drive, Suite 3A Woodbury, Minnesota 55125 If to Grantee: Qwest Broadband Services, Inc., d/b/a CenturyLink 1801 California St., 10th Flr. Denver, CO 80202 Attn: Public Policy With copies to: Qwest Broadband Services Inc., d/b/a CenturyLink 200 S. 5th Street, 21st Flr. Minneapolis, MN 55402 Attn: Public Policy Such addresses may be changed by either party upon notice to the other party given as provided in this Section. SECTION 3. CONSTRUCTION STANDARDS 1. Registration, Permits and Construction Codes a. Grantee shall strictly adhere to all state and local laws and building and zoning codes currently or hereafter applicable to location, construction, installation, operation or maintenance of the System in City and give due consideration at all times to the aesthetics of the property. b. Failure to obtain permits or comply with permit requirements shall be grounds for revocation of this Franchise or any lesser sanctions provided herein or in any other applicable law. 2. Repair of Rights-of-Way and Property. Any and all Rights-of-Way, or public or private property, which are disturbed or damaged during the construction, repair, replacement, relocation, operation, maintenance, expansion, extension or reconstruction of the System shall be promptly and fully restored by Grantee, at its expense, to the same condition as that prevailing prior to Grantee's work, as determined by City. If Grantee shall fail to promptly perform the restoration required herein, after written request of City and reasonable opportunity to satisfy that request, City shall have the right to put the Rights- of-Way, public, or private property back into good condition. In the event City 12 determines that Grantee is responsible for such disturbance or damage, Grantee shall be obligated to fully reimburse City for such restoration. 3. Conditions on Right-of-Way Use. a. Nothing in this Franchise shall be construed to prevent City from constructing, maintaining, repairing or relocating sewers; grading, paving, maintaining, repairing, relocating and/or altering any Right-of-Way; constructing, laying down, repairing, maintaining or relocating any water mains; or constructing, maintaining, relocating, or repairing any sidewalk or other public work. b. All System transmission and distribution structures, lines and equipment erected by the Grantee within City shall be located so as not to obstruct or interfere with the use of Rights-of-Way except for normal and reasonable obstruction and interference which might occur during construction and to cause minimum interference with the rights of property owners who abut any of said Rights-of- Way and not to interfere with existing public utility installations. c. If at any time during the period of this Franchise City shall elect to alter or change the grade or location of any Right-of-Way, the Grantee shall, at its own expense, upon reasonable notice by City, remove and relocate its poles, wires, cables, conduits, manholes and other fixtures of the System and in each instance comply with the reasonable and lawful standards and specifications of City. d. The Grantee shall not place poles, conduits, or other fixtures of System above or below ground where the same will interfere with any gas, electric, telephone, water or other utility fixtures and all such poles, conduits, or other fixtures placed in any Right-of-Way shall be so placed as to comply with all reasonable and lawful requirements of City. e. The Grantee shall, upon request of any Person holding a moving permit issued by City, temporarily move its wires or fixtures to permit the moving of buildings with the expense of such temporary removal to be paid by the Person requesting the same, and the Grantee shall be given not less than ten (10) days advance written notice to arrange for such temporary changes. f. The Grantee shall have the authority to trim any trees upon and overhanging the Rights-of-Way of City so as to prevent the branches of such trees from coming in contact with the wires and cables or other facilities of the Grantee. g. Grantee shall use its best efforts to give reasonable prior notice to any adjacent private property owners who will be negatively affected or impacted by Grantee’s work in the Rights-of-Way. 4. Undergrounding of Cable. Unless otherwise required by action of City Council, Grantee must place newly constructed facilities underground in areas of City where all other 13 utility lines are placed underground. Amplifier boxes and pedestal mounted terminal boxes may be placed above ground if existing technology reasonably requires, but shall be of such size and design and shall be so located as not to be unsightly or unsafe, all pursuant to plans submitted with Grantee’s permit application(s) and approved by City. 5. Installation of Facilities. No poles, conduits, amplifier boxes, pedestal mounted terminal boxes, similar structures, or other wire-holding structures shall be erected or installed by the Grantee without required permit of City. 6. Safety Requirements. a. The Grantee shall at all times employ ordinary and reasonable care and shall install and maintain in use nothing less than commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage or injuries. b. The Grantee shall install and maintain its System and other equipment in accordance with City’s codes and the requirements of the National Electric Safety Code and all other applicable FCC, state and local regulations, and in such manner that they will not interfere with City communications technology related to health, safety and welfare of the residents. c. All System structures, and lines, equipment and connections in, over, under and upon the Rights-of-Way of City, wherever situated or located, shall at all times be kept and maintained in good condition, order, and repair so that the same shall not menace or endanger the life or property of City or any Person. SECTION 4. DESIGN PROVISIONS 1. System Design. a. Grantee shall develop, construct and operate a state-of-the-art cable communications system, constructed in accordance with Section 2, Paragraph (7)(a). b. All final programming decisions remain the discretion of Grantee, provided that Grantee notifies City and Subscribers in writing thirty (30) days prior to any channel additions, deletions, or realignments, and further subject to Grantee’s signal carriage obligations hereunder and pursuant to 47 U.S.C. §§ 531-536, and further subject to City's rights pursuant to 47 U.S.C. § 545. Location and relocation of the PEG Channels shall be governed by Section 6, Paragraph 1(d). 2. Interruption of Service. The Grantee shall interrupt service only for good cause and for the shortest time possible. Such interruption shall occur during periods of minimum use of the System. If service is interrupted for a total period of more than forty eight (48) hours in 14 any thirty (30) day period, Subscribers shall be credited pro rata for such interruption, upon request. 3. Technical Standards. The technical standards used in the operation of the System shall comply, at minimum, with the technical standards promulgated by the FCC relating to Cable Systems pursuant to Title 47, Sections 76.601 to 76.617, as applicable, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. 4. Special Testing. a. The City shall have the right to inspect all construction or installation work performed pursuant to the provisions of the Franchise. In addition, the City/Commission may require special testing of a location or locations within the System if there is a particular matter of controversy or unresolved complaints regarding such construction or installation work or pertaining to such location(s). Demand for such special tests may be made on the basis of complaints received or other evidence indicating an unresolved controversy or noncompliance. Such tests shall be limited to the particular matter in controversy or unresolved complaints. The City shall endeavor to so arrange its request for such special testing so as to minimize hardship or inconvenience to Grantee or to the Subscribers caused by such testing. b. Before ordering such tests, Grantee shall be afforded thirty (30) days following receipt of written notice to investigate and, if necessary, correct problems or complaints upon which tests were ordered. The City shall meet with Grantee prior to requiring special tests to discuss the need for such and, if possible, visually inspect those locations which are the focus of concern. If, after such meetings and inspections, City wishes to commence special tests and the thirty (30) days have elapsed without correction of the matter in controversy or unresolved complaints, the tests shall be conducted at Grantee’s expense by a qualified engineer selected by City and Grantee, and Grantee shall cooperate in such testing. 5. Drop Testing and Replacement. The Grantee shall replace, at no separate charge to an individual Subscriber, all Drops and/or associated passive equipment incapable of passing the full System capacity at the time a Subscriber upgrades. 6. FCC Reports. The results of any tests required to be filed by Grantee with the FCC shall upon request of City also be filed with the City or its designee within ten (10) days of the conduct of such tests. 7. Interconnection. The System servicing the Cities of Arden Hills, Falcon Heights, Lauderdale, Little Canada, Mounds View, New Brighton, North Oaks, Roseville, and St. Anthony shall continue to be completely interconnected. In addition, Grantee shall make available for interconnection purposes one (1) channel for forward video purposes, one (1) six 15 (6) MHz channel for return video purposes, one (1) channel for forward data or other purposes, and one (1) channel for return data or other purposes between all Systems adjacent to the North Suburban System and under common ownership with Grantee. This commitment may be satisfied through the provision of the Twin Cities Metro PEG Interconnect Network, provided Grantee agrees to allow all cities adjacent to the North Suburban System to participate. 8. Nonvoice Return Capability. Grantee is required to use cable and associated electronics having the technical capacity for nonvoice return communications. 9. Lockout Device. Upon the request of a Subscriber, Grantee shall make available a Lockout Device at no additional charge to Subscribers. SECTION 5. SERVICE PROVISIONS 1. Regulation of Service Rates. a. The City may regulate rates for the provision of Cable Service, equipment, or any other communications service provided over the System to the extent allowed under federal or state law(s). City reserves the right to regulate rates for any future services to the extent permitted by law. b. Grantee shall give City and Subscribers written notice of any change in a rate or charge at least one billing cycle prior to the effective date of the change. Bills must be clear, concise, and understandable, with itemization of all charges. 2. Sales Procedures. Grantee shall not exercise deceptive sales procedures when marketing any of its services within City. In its initial communication or contact with a non- Subscriber and in all general solicitation materials marketing the Grantee or its services as a whole, Grantee shall inform the non-Subscriber of all levels of service available, including the lowest priced and free service tiers. Grantee shall have the right to market door-to-door during reasonable hours consistent with local ordinances and regulation. 3. Subscriber Inquiry and Complaint Procedures. a. Grantee shall have a publicly listed toll-free telephone number which shall be operated so as to receive Subscriber complaints and requests on a twenty-four (24) hour-a-day, seven (7) days-a-week, 365 days a year basis. During normal business hours, trained representatives of Grantee shall be available to respond to Subscriber inquiries. b. Grantee shall maintain adequate numbers of telephone lines and personnel to respond in a timely manner to schedule service calls and answer Subscriber complaints or inquiries in a manner consistent with regulations adopted by the FCC and City where applicable and lawful. 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 16 transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met no less than ninety (90) percent of the time under normal operating conditions, measured on a quarterly basis. Under normal operating conditions, the customer will receive a busy signal less than three (3) percent of the time. Grantee shall respond to written complaints with copy to City or its designee within thirty (30) days. c. Subject to Grantee’s obligations pursuant to law regarding privacy of certain information, Grantee shall prepare and maintain written records of all complaints received from City and the resolution of such complaints, including the date of such resolution. Such written records shall be on file at the office of Grantee. Grantee shall provide City with a written summary of such complaints and their resolution upon request of City. As to Subscriber complaints, Grantee shall comply with FCC record-keeping regulations and make the results of such record- keeping available to City upon request. d. Subscriber requests for repairs shall be performed within thirty-six (36) hours of the request unless conditions beyond the control of Grantee prevent such performance. Grantee may schedule appointments for Installations and other service calls either at a specific time or, at a maximum, during a four hour time block during normal business hours. Grantee may also schedule service calls outside normal business hours for the convenience of customers. Grantee shall use its best efforts to not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment. If the installer or technician is late and will not meet the specified appointment time, he/she must use his/her best efforts to contact the customer and reschedule the appointment at the sole convenience of the customer. Service call appointments must be met in a manner consistent with FCC standards. 4. Subscriber Contracts. Grantee shall file with City any standard form Subscriber contract utilized by Grantee. If no such written contract exists, Grantee shall file with the City a document completely and concisely stating the length and terms of the Subscriber contract offered to customers. The length and terms of any Subscriber contract(s) shall be available for public inspection during normal business hours. 5. Refund Policy. In the event a Subscriber establishes or terminates service and receives less than a full month's service, Grantee shall prorate the monthly rate on the basis of the number of days in the period for which service was rendered to the number of days in the billing. 6. Late Fees. Fees for the late payment of bills shall not be assessed until after the service has been fully provided and, as of the due date of the bill notifying Subscriber of an unpaid balance, the bill remains unpaid. Late Fees may not exceed the actual costs to Grantee of late payment of bills and the servicing and collecting of such accounts. 17 7. Office Policy. The Grantee shall install, maintain and operate, throughout the term of this Franchise, a single staffed payment center with regular business hours in the Commission Franchise Area at a location agreed upon by the Commission and the Grantee. Additional payment centers may be installed at other locations. The purpose of the payment center(s) shall be to receive Subscriber payments. All subscriber remittances at a payment center shall be posted to Subscribers’ accounts within forty-eight (48) hours of remittance. Subscribers shall not be charged a late fee or otherwise penalized for any failure by the Grantee to properly credit a Subscriber for a payment timely made. The Grantee shall, at the request of and at no delivery or retrieval charge to a Subscriber, deliver or retrieve electronic equipment (e.g., Set Top Boxes and remote controls). After consultation with the Commission, the Grantee shall provide Subscribers with at least sixty (60) days’ prior notice of any change in the location of the customer service center serving the North Suburban System, which notice shall apprise Subscribers of the customer service center’s new address, and the date the changeover will take place. SECTION 6. ACCESS CHANNEL(S) PROVISIONS 1. Public, Educational and Government Access. a. City or its designee is hereby designated to operate, administer, promote, and manage access (public, education, and government programming) (hereinafter "PEG access") programming on the Cable System. b. Within one hundred twenty (120) days from the Effective Date, the Grantee shall provide sixteen (16) channels (the “Access Channels”) to be used for PEG access programming on the basic service tier. The City and Commission have the sole discretion to designate the use of each Access Channel. Grantee shall provide a technically reliable path for upstream and downstream transmission of the Access Channels, which will in no way degrade the technical quality of the Access Channels, from an agreed upon demarcation point at the Commission’s Master Control Center at the Commission’s office, and from any other designated Access providers’ locations, to Grantee’s headend, on which all Access Channels shall be transported for distribution on Grantee’s subscriber network. The Access Channels shall be delivered without degradation to subscribers in the technical format (e.g. HD or SD) as delivered by the Commission and any designated Access provider to Grantee at each demarcation point at the Commission Office and at the designated Access providers’ locations. (1) All of the Access Channels will be made available through a multi- channel display (i.e. a picture in picture feed) on a single TV screen called a “mosaic” (the “North Suburban Mosaic”), where a cable subscriber can access via an interactive video menu one of any of the sixteen Access Channels. The North Suburban Mosaic will be located on Channel 15. The sixteen Access Channels will be located at Channels 8010-8025. The North Suburban Mosaic will contain only Access Channels authorized by the Commission. 18 (2) Grantee will make available to the Commission the ability to place detailed scheduled Access Channel programming information on the interactive channel guide by putting the Commission in contact with the electronic programing guide vendor (“EPG provider”) that provides the guide service (currently Gracenote). Grantee will be responsible for providing the designations and instructions necessary to ensure the Access Channels will appear on the programming guide throughout the City and any necessary headend costs associated therewith. The Commission shall be responsible for providing programming information to the EPG provider. (3) For purposes of this Franchise, the term channel shall be as commonly understood and is not any specific bandwidth amount. The signal quality of the Access Channels shall be the same as the local broadcast channels, provided such signal quality is delivered to Grantee at the Access Channels’ respective demarcation points. (4) Grantee will provide, at no cost to the Commission, air time on non- Access channels during periods in which ample unsold/unused air time on such channels exists for City public service announcements (PSAs). The Commission will provide a 30-second PSA prior to the start of each month on a mutually agreed-upon schedule. (5) In the event Grantee makes any change in the Cable System and related equipment and facilities or in its signal delivery technology, which requires the City or Commission to obtain new equipment in order to be compatible with such change for purposes of transport and delivery of the Access Channels to the Grantee’s headend, Grantee shall, at its own expense and free of charge to the City, the Commission, 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. (6) Neither the Grantee nor the officers, directors, or employees of the Grantee is liable for any penalties or damages arising from programming content not originating from or produced by the Grantee and shown on any public access channel, education access channel, government access channel, leased access channel, or regional channel. (7) Within one hundred twenty (120) days of a written request from the Commission, Grantee shall make available as part of Basic Service to all Subscribers a PEG Access Video-on Demand (PEG-VOD) Service and maintain a PEG-VOD system. The PEG-VOD system shall be connected by the Grantee such that: 19 (i) Twenty-five (25) hours of programming per member city of the Commission, or such greater amount as may be mutually agreed to by the parties, as designated and supplied by the City, Commission, or its Designated Access Provider to the Grantee may be electronically transmitted and/or transferred and stored on the PEG-VOD system; and (ii) A database of that programming may be efficiently searched and a program requested and viewed over the PEG-VOD system by any Subscriber in the City; and (iii) Programming submitted for placement on the PEG-VOD system, shall be placed on and available for viewing from the PEG-VOD system within forty-eight (48) hours of receipt of said programming; (iv) The hardware and software described in Subsection (8) below, shall be in all respects of the same or better technical quality as the hardware and software utilized by Grantee in the provision of any other video on demand services offered over the Cable System, and shall be upgraded at Grantee’s cost, when new hardware or software is utilized on Grantee’s Cable System for other video on demand services. Grantee shall provide reasonable technical assistance to allow for proper use and operation when encoding hardware or software is installed and/or upgraded at City’s facilities. (8) To ensure compatibility and interoperability, the Grantee shall supply and maintain all necessary hardware and software to encode, transmit and/or transfer Government Access programming from the City to the PEG-VOD system. The City shall be responsible for all monitoring of any equipment provided under this Section, and notifying Grantee of any problems. Grantee shall provide all technical support and maintenance for the equipment provided to the City by Grantee under this Section. After notification of any equipment problems, Grantee shall diagnose and resolve the problem within forty eight (48) hours. Major repairs which cannot be repaired within the forty eight (48) hour timeframe shall be completed within seven (7) days of notice, unless, due to Force Majeure conditions, a longer time is required. “Major repairs” are those that require equipment to be specially obtained in order to facilitate the repairs. The quality of signal and the quality of service obtained by a Subscriber utilizing the PEG-VOD service shall meet or exceed the quality standards established for all other programming provided by the Grantee and as established elsewhere in this Franchise Agreement. 20 c. All residential Subscribers who receive all or any part of the total services offered on the System shall be eligible to receive the Access Channels at no additional charge. City may rename, reprogram, or otherwise change the use of these channels in its sole discretion, provided such use is non-commercial, lawful, and retains the general purpose of the provision of community programming. Nothing herein shall diminish the City's rights to secure additional channels pursuant to Minn. Stat. § 238.084, which is expressly incorporated herein by reference. City shall provide ninety (90) days prior written notice to Grantee of City's intent to activate access channels. d. Grantee may not move or otherwise change the channel number or location of any public or government access or community program channel, including the North Suburban Mosaic channel, without the written approval of the City or its designee. Upon six (6) months’ notice to City, any other access channel may be moved by Grantee, but in no event more than once every two (2) years unless otherwise allowed by City, provided Grantee pays all reasonable costs or expenses arising out of the channel move including, but not limited to, equipment necessary to effect the change at the programmer’s production or receiving facility (school frequency routing equipment, etc.), signage, letterhead, business cards, and reasonable marketing or other constituency notification costs. This paragraph shall not apply to Regional Channel 6. 2. Charges for Use. Channel time and playback of programming on the PEG access and community program channel(s) must be provided without charge to City and the public. 3. Access Rules. City, or its designee, shall implement rules for use of any access channel(s). 4. Access Support. Grantee shall pay a PEG Fee of $4.15/subscriber/month from the effective date until the franchise renews. Starting with the 2016 calendar year, the City may elect to increase this fee based on the Consumer Price Index. Any such election must be made in writing to the Franchisee no later than September 1st prior to the year in which the increase shall apply. In no event shall the PEG Fee be in an amount different from the incumbent cable provider. In the event the incumbent recovers from subscribers a higher, or lower, PEG fee, Grantee will increase, or decrease, its PEG fee upon ninety (90) days written notice from the City. The PEG fee may be used for operational or capital support of PEG programming. 5. Regional Channel 6. Grantee shall designate standard VHF Channel 6 for uniform regional channel usage. 6. State and Federal Law compliance. Satisfaction of the requirements of this Section 6 satisfies any and all of Grantee’s state and federal law requirements of Grantee with respect to PEG access. 7. Future PEG Funding Obligations. Grantee agrees that financial support for PEG arising from or relating to the obligations set forth in this Section shall in no way modify or 21 otherwise affect Grantee's obligations to pay Franchise Fees to City. Grantee agrees that although the sum of Franchise Fees plus the payments set forth in this Section may total more than five percent (5%) of Grantee's Gross Revenues in any 12-month period, the additional commitments shall not be offset or otherwise credited in any way against any Franchise Fee payments under this Franchise Agreement. 8. Additional Payments. If the incumbent franchised cable operator agrees to provide any support of the Access Channels in excess of the amount identified above or to any payment in support of any other PEG-related commitment after the Effective Date of this Franchise, the Commission, in its reasonable discretion, after meeting with the Grantee, will determine whether Grantee’s PEG Fee should be changed. If Grantee is required to pay any additional PEG Fee, such amount must be based upon a per subscriber/per month fee. SECTION 7. SERVICES TO CITY 1. Twin Cities Metro PEG Interconnect Network. Grantee shall provide a discrete, non-public, video interconnect network, from an agreed upon demarcation point at the Commission's Master Control Center at the Commission's office, to Grantee's headend. The video interconnect network shall not exceed 50 Mbps of allocated bandwidth, allowing PEG operators that have agreed with Grantee to share (send and receive) live and recorded programming for playback on their respective systems. Where available the Grantee shall provide the video interconnect network and the network equipment necessary for the high- priority transport of live multicast HD/SD video streams as well as lower-priority file-sharing. Grantee shall provide 50 Mbps bandwidth for each participating PEG entity to send its original programming, receive at least two additional multicast HD/SD streams from any other participating PEG entity, and allow the transfer of files. Each participating PEG entity is responsible for encoding its own SD/HD content in suitable bit rates to be transported by the video interconnect network without exceeding the 50 Mbps of allocated bandwidth. 2. Cable Service to Public Buildings. Grantee shall, at no cost to the City or Commission, provide Basic Service and Expanded Basic Service (currently Prism Essentials) or equivalent package of Cable Service and necessary reception equipment to up to seven (7) outlets at the Commission Office and at each Member City City Hall and to each Independent School District at the current locations located in the Commission area that originates PEG programming. Grantee shall, at no cost to the City, provide Basic Service and Expanded Basic Service (currently Prism Essentials) or equivalent package of Cable Service and necessary reception equipment to up to three (3) outlets at all other government buildings, schools and public libraries located in the City where Grantee provides Cable Service, so long as these government addresses are designated as a Household and no other cable communications provider is providing complementary service at such location. For purposes of this subsection, “school” means all State-accredited K-12 public and private schools. Outlets of Basic and Expanded Basic Service provided in accordance with this subsection may be used to distribute Cable Services throughout such buildings; provided such distribution can be accomplished without causing Cable System disruption and general technical standards are maintained. Such outlets may only be used for lawful purposes. If any location is not designated as a Household, it 22 will be provided the functionality to monitor PEG signals through a mutually agreeable alternate technology at the expense of the Grantee. SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS 1. Administration of Franchise. The City Manager or other designee shall have continuing regulatory jurisdiction and supervision over the System and the Grantee's operation under the Franchise. The City, or its designee, may issue such reasonable rules and regulations concerning the construction, operation and maintenance of the System as are consistent with the provisions of the Franchise and law. 2. Delegated Authority. The City may appoint a citizen advisory body or a Joint Powers Commission, or may delegate to any other body or Person authority to administer the Franchise and to monitor the performance of the Grantee pursuant to the Franchise. Grantee shall cooperate with any such delegatee of City. 3. Franchise Fee. a. During the term of the Franchise, Grantee shall pay quarterly to City or its delegatee a Franchise Fee in an amount equal to five percent (5%) of its quarterly Gross Revenues, or such other amounts as are subsequently permitted by federal statute. b. Any payments due under this provision shall be payable quarterly. The payment shall be made within thirty (30) days of the end of each of Grantee's fiscal quarters together with a report showing the basis for the computation. c. All amounts paid shall be subject to audit and recomputation by City and/or the Commission and acceptance of any payment shall not be construed as an accord that the amount paid is in fact the correct amount. If an audit or review discloses an overpayment or underpayment of franchise fees, the City and/or the Commission shall notify Grantee of such overpayment or underpayment. The City’s/Commission’s audit or review expenses shall be borne by the City/Commission unless the audit or review determines that the payment to the City should be increased by more than five percent (5%) in the audited/reviewed period, in which case the costs of the audit/review shall be borne by Grantee, up to a cap of $25,000, as a cost incidental to the enforcement of the Franchise. Any additional amounts due to the City as a result of the audit or review shall be paid to the City within thirty (30) days following written notice to Grantee by the City/Commission of the underpayment, which notice shall include a copy of the audit/review report. If the recomputation results in additional revenue to be paid to the City, such amount shall be subject to a ten percent (10%) annual interest charge. d. The City/Commission shall have the right to inspect and to require Grantee to provide any and all data, documents and records maintained by Grantee (or 23 maintained by an Affiliate or a third-party contractor/vendor on behalf of Grantee) reasonably related to the calculation and payment of franchise fees. The Grantee shall maintain such records, documents and data for a minimum of four (4) years. e. Grantee shall have no less than twenty (20) business days to respond fully and completely to any written request for data, documents and records issued by the City/Commission, unless an extension of time is granted by the City/Commission in writing. Grantee may request an extension of the twenty (20) business day deadline applicable to a written request for data, information and documents no later than ten (10) business days after the date of such request. Every request for an extension of time shall describe, in detail, the reasons the extension is necessary. The City/Commission may, in its sole discretion, grant or deny an extension request, and shall act reasonably in making such a determination based on the scope and complexity of the information request at issue and the facts cited by Grantee in its written extension request. f. In the event any franchise fee payment or recomputation amount is not made on or before the required date, Grantee shall pay, during the period such unpaid amount is owed, the additional compensation and interest charges computed from such due date, at an annual rate of ten percent (10%). g. Nothing in this Franchise shall be construed to limit any authority of the City to impose any tax, fee or assessment of general applicability. h. The franchise fee payments required by this Franchise shall be in addition to any and all taxes or fees of general applicability. Grantee shall not have or make any claim for any deduction or other credit of all or any part of the amount of said franchise fee payments from or against any of said taxes or fees of general applicability, except as expressly permitted by law. Grantee shall not apply nor seek to apply all or any part of the amount of said franchise fee payments as a deduction or other credit from or against any of said taxes or fees of general applicability, except as expressly permitted by law. Nor shall Grantee apply or seek to apply all or any part of the amount of any of said taxes or fees of general applicability as a deduction or other credit from or against any of its franchise fee obligations, except as expressly permitted by law. i. The Franchise Fee shall be in addition to any and all taxes or other levies or assessments which are now or hereafter required to be paid by businesses in general by any law of the City, the State or the United States including, without limitation, sales, use and other taxes, business license fees or other payments. Payment of the Franchise Fee under this Franchise shall not exempt Grantee from the payment of any other license fee, permit fee, tax or charge on the business, occupation, property or income of Grantee that may be lawfully imposed by the City. Any other license fees, taxes or charges shall be of general applicability in 24 nature and shall not be levied against Grantee solely because of its status as a cable operator or solely because of its status as such. 4. Access to Records. The City shall have the right to inspect, upon reasonable notice and during normal business hours, or require Grantee to provide within a reasonable time copies of any records maintained by Grantee which relate to System operations including specifically Grantee’s accounting and financial records. 5. Reports and Maps. a. Grantee shall file with the City, at the time or payment of the Franchise Fee, a report of all Gross Revenues in form and substance as required by City. b. Grantee shall prepare and make available to City, at the times and in the form prescribed, such other reasonable reports with respect to Grantee’s operations pursuant to this Franchise as City may require. c. If required by City, Grantee shall make available to the City Manager the maps, plats, and permanent records of the location and character of all facilities constructed, including underground facilities, and Grantee shall make available with City updates of such maps, plats and permanent records annually if changes have been made in the System. 6. Periodic Evaluation. a. The City may require evaluation sessions at any time during the term of this Franchise, upon fifteen (15) days written notice to Grantee. b. Topics which may be discussed at any evaluation session may include, but are not limited to, application of new technologies, System performance, programming offered, access channels, facilities and support, municipal uses of cable, subscriber rates, customer complaints, amendments to this Franchise, judicial rulings, FCC rulings, line extension policies and any other topics City deems relevant. c. As a result of a periodic review or evaluation session, upon notification from City, Grantee shall meet with city 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. 25 SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS 1. Performance Bond. a. Within 30 days of the Effective Date of this Franchise, the Grantee shall deliver to the Commission a bond, that is effective as of the Effective Date and at all times thereafter, until the Grantee has liquidated all of its obligations with City, the Grantee shall furnish a bond to Commission in the amount of $500,000.00 in a form and with such sureties as reasonably acceptable to City. This bond will be conditioned upon the faithful performance by the Grantee of its Franchise obligations and upon the further condition that in the event the Grantee shall fail to comply with any law, ordinance or regulation governing the Franchise, there shall be recoverable jointly and severally from the principal and surety of the bond any damages or loss suffered by City as a result, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the Grantee, plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond, and further guaranteeing payment by the Grantee of claims, liens and taxes due City which arise by reason of the construction, operation, or maintenance of the System. The rights reserved by City with respect to the bond are in addition to all other rights City may have under the Franchise or any other law. City may, from year to year, in its sole discretion, reduce the amount of the bond. b. The time for Grantee to correct any violation or liability, shall be extended by City if the necessary action to correct such violation or liability is, in the sole determination of City, of such a nature or character as to require more than thirty (30) days within which to perform, provided Grantee provides written notice that it requires more than thirty (30) days to correct such violations or liability, commences the corrective action within the thirty (30) days period and thereafter uses reasonable diligence to correct the violation or liability. c. In the event this Franchise is revoked by reason of default of Grantee, City shall be entitled to collect from the performance bond that amount which is attributable to any damages sustained by City as a result of said default or revocation. d. Grantee shall be entitled to the return of the performance bond, or portion thereof, as remains sixty (60) days after the expiration of the term of the Franchise or revocation for default thereof, provided City has not notified Grantee of any actual or potential damages incurred as a result of Grantee’s operations pursuant to the Franchise or as a result of said default. e. The rights reserved to City with respect to the performance bond are in addition to all other rights of City whether reserved by this Franchise or authorized by law, and no action, proceeding or exercise of a right with respect to the performance bond shall affect any other right City may have. 26 2. Letter of Credit. a. Within thirty (30) days of the Effective Date of this Franchise, Grantee shall deliver to Commission an irrevocable and unconditional Letter of Credit, that is effective as of the Effective Date, in form and substance acceptable to City, from a National or State bank approved by the Commission , in the amount of $25,000.00. b. The Letter of Credit shall provide that funds will be paid to City, upon written demand of City, and in an amount solely determined by City in payment for penalties charged pursuant to this Section, in payment for any monies owed by Grantee to City or any person pursuant to its obligations under this Franchise, or in payment for any damage incurred by City or any person as a result of any acts or omissions by Grantee pursuant to this Franchise. c. In addition to recovery of any monies owed by Grantee to City or any person or damages to City or any person as a result of any acts or omissions by Grantee pursuant to the Franchise, City in its sole discretion may charge to and collect from the Letter of Credit the following penalties: i. For failure to timely complete System upgrades as provided in this Franchise unless City approves the delay, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. ii. For failure to provide data, documents, reports or information or to cooperate with City during an application process or system review or as otherwise provided herein, the penalty shall be $250.00 per day for each day, or part thereof, such failure occurs or continues. iii. Fifteen (15) days following notice from City of a failure of Grantee to comply with construction, operation or maintenance standards, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. iv. For failure to provide the services Grantee has proposed, including, but not limited to, the implementation and the utilization of the access channels and the maintenance and/or replacement of the equipment and other facilities, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues. v. For Grantee’s breach of any written contract or agreement with or to the City or its designee, the penalty shall be $500.00 per day for each day, or part thereof, such breach occurs or continues. vi. For failure to comply with the reasonable build-out provisions and for economic redlining in violation of Section 2, Paragraph 7 above and 47 27 U.S.C. § 541(a)(3): Five Hundred dollars ($500) per day for each day or part thereof that such violation continues. vii. For failure to comply with any of the provisions of this Franchise, or other City ordinance for which a penalty is not otherwise specifically provided pursuant to this paragraph c, the penalty shall be $250.00 per day for each day, or part thereof, such failure occurs or continues. d. Each violation of any provision of this Franchise shall be considered a separate violation for which a separate penalty can be imposed. e. Whenever City finds that Grantee has violated one or more terms, conditions or provisions of this Franchise, or for any other violation contemplated in Section 9, Paragraph 2(c) above, a written notice shall be given to Grantee informing it of such violation. At any time after thirty (30) days (or such longer reasonable time which, in the sole determination of City, is necessary to cure the alleged violation) following local receipt of notice, provided Grantee remains in violation of one or more terms, conditions or provisions of this Franchise, in the sole opinion of City, City may draw from the Letter of Credit all penalties and other monies due City from the date of the local receipt of notice. f. Whenever the Letter of Credit is drawn upon, Grantee may, within seven (7) days of such draw, notify City in writing that there is a dispute as to whether a violation or failure has in fact occurred. Such written notice by Grantee to City shall specify with particularity the matters disputed by Grantee. All penalties shall continue to accrue and City may continue to draw from the Letter of Credit during any appeal pursuant to this subparagraph f. i. City shall hear Grantee's dispute within sixty (60) days and render a final decision within sixty (60) days thereafter. ii. Upon the determination of City that no violation has taken place, City shall refund to Grantee, without interest, all monies drawn from the Letter of Credit by reason of the alleged violation. g. If said Letter of Credit or any subsequent Letter of Credit delivered pursuant thereto expires prior to thirty (30) months after the expiration of the term of this Franchise, it shall be renewed or replaced during the term of this Franchise to provide that it will not expire earlier than thirty (30) months after the expiration of this Franchise. The renewed or replaced Letter of Credit shall be of the same form and with a bank authorized herein and for the full amount stated in Paragraph A of this Section. h. If City draws upon the Letter of Credit or any subsequent Letter of Credit delivered pursuant hereto, in whole or in part, Grantee shall replace or replenish to its full amount the same within ten (10) days and shall deliver to City a like 28 replacement Letter of Credit or certification of replenishment for the full amount stated in Section 9, Paragraph 2(a) as a substitution of the previous Letter of Credit. This shall be a continuing obligation for any draws upon the Letter of Credit. i. If any Letter of Credit is not so replaced or replenished, City may draw on said Letter of Credit for the whole amount thereof and use the proceeds as City determines in its sole discretion. The failure to replace or replenish any Letter of Credit may also, at the option of the City, be deemed a default by Grantee under this Franchise. The drawing on the Letter of Credit by City, and use of the money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such default. j. The collection by City of any damages, monies or penalties from the Letter of Credit shall not affect any other right or remedy available to City, nor shall any act, or failure to act, by City pursuant to the Letter of Credit, be deemed a waiver of any right of City pursuant to this Franchise or otherwise. 3. Indemnification of City. a. City, its officers, boards, committees, commissions, elected officials, employees and agents shall not be liable for any loss or damage to any real or personal property of any Person, or for any injury to or death of any Person, arising out of or in connection with Grantee’s construction, operation, maintenance, repair or removal of the System or as to any other action of Grantee with respect to this Franchise. b. Grantee shall indemnify, defend, and hold harmless City, its officers, boards, committees, commissions, elected officials, employees and agents, from and against all liability, damages, and penalties which they may legally be required to pay as a result of the City’s exercise, administration, or enforcement of the Franchise. c. Nothing in this Franchise relieves a Person, except City, from liability arising out of the failure to exercise reasonable care to avoid injuring the Grantee's facilities while performing work connected with grading, regarding, or changing the line of a Right-of-Way or public place or with the construction or reconstruction of a sewer or water system. d. Grantee shall contemporaneously with this Franchise execute an Indemnity Agreement in the form of Exhibit A, which shall indemnify, defend and hold the City and Commission harmless for any claim for injury, damage, loss, liability, cost or expense, including court and appeal costs and reasonable attorneys’ fees or reasonable expenses arising out of the actions of the City and/or Commission in granting this Franchise. This obligation includes any claims by another 29 franchised cable operator against the City and/or Commission that the terms and conditions of this Franchise are less burdensome than another franchise granted by the City or that this Franchise does not satisfy the requirements of applicable state law(s). 4. Insurance. a. As a part of the indemnification provided in Section 8.3, but without limiting the foregoing, Grantee shall file with City at the time of its acceptance of this Franchise, and at all times thereafter maintain in full force and effect at its sole expense, a comprehensive general liability insurance policy, including broadcaster’s/cablecaster’s liability and contractual liability coverage, in protection of the Grantee, and the City, its officers, elected officials, boards, commissions, agents and employees for any and all damages and penalties which may arise as a result of this Franchise. The policy or policies shall name the City as an additional insured, and in their capacity as such, City officers, elected officials, boards, commissions, agents and employees. b. The policies of insurance shall be in the sum of not less than $1,000,000.00 for personal injury or death of any one Person, and $2,000,000.00 for personal injury or death of two or more Persons in any one occurrence, $500,000.00 for property damage to any one person and $2,000,000.00 for property damage resulting from any one act or occurrence. c. The policy or policies of insurance shall be maintained by Grantee in full force and effect during the entire term of the Franchise. Each policy of insurance shall contain a statement on its face that the insurer will not cancel the policy or fail to renew the policy, whether for nonpayment of premium, or otherwise, and whether at the request of Grantee or for other reasons, except after sixty (60) days advance written notice have been provided to City. SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE 1. City's Right to Revoke. a. In addition to all other rights which City has pursuant to law or equity, City reserves the right to commence proceedings to revoke, terminate or cancel this Franchise, and all rights and privileges pertaining thereto, if it is determined by City that: i. Grantee has violated material provisions(s) of this Franchise; or ii. Grantee has attempted to evade any of the provisions of the Franchise; or iii. Grantee has practiced fraud or deceit upon City. 30 City may revoke this Franchise without the hearing required by Section 10, Paragraph.2 herein if Grantee is adjudged a bankrupt. 2. Procedures for Revocation. a. City shall provide Grantee with written notice of a cause for revocation and the intent to revoke and shall allow Grantee thirty (30) days subsequent to receipt of the notice in which to correct the violation or to provide adequate assurance of performance in compliance with the Franchise. In the notice required herein, City shall provide Grantee with the basis of the revocation. b. Grantee shall be provided the right to a public hearing affording due process before the City Council prior to the effective date of revocation, which public hearing shall follow the thirty (30) day notice provided in subparagraph (a) above. City shall provide Grantee with written notice of its decision together with written findings of fact supplementing said decision. c. Only after the public hearing and upon written notice of the determination by City to revoke the Franchise may Grantee appeal said decision with an appropriate state or federal court or agency. d. During the appeal period, the Franchise shall remain in full force and effect unless the term thereof sooner expires or unless continuation of the Franchise would endanger the health, safety and welfare of any person or the public. 3. Abandonment of Service. Grantee may not abandon the System or any portion thereof without having first given three (3) months written notice to City. Grantee may not abandon the System or any portion thereof without compensating City for damages resulting from the abandonment, including all costs incident to removal of the System. 4. Removal After Abandonment, Termination or Forfeiture. a. In the event of termination or forfeiture of the Franchise or abandonment of the System, City shall have the right to require Grantee to remove all or any portion of the System from all Rights-of-Way and public property within City. b. If Grantee has failed to commence removal of System, or such part thereof as was designated by City, within thirty (30) days after written notice of City's demand for removal is given, or if Grantee has failed to complete such removal within twelve (12) months after written notice of City's demand for removal is given, City shall have the right to apply funds secured by the Letter of Credit and Performance Bond toward removal and/or declare all right, title, and interest to the System to be in City with all rights of ownership including, but not limited to, the right to operate the System or transfer the System to another for operation by it. 31 5. Sale or Transfer of Franchise. a. No sale or transfer of the Franchise, or sale, transfer, or fundamental corporate change of or in Grantee, including, but not limited to, a fundamental corporate change in Grantee’s parent corporation or any entity having a controlling interest in Grantee, the sale of a controlling interest in the Grantee’s assets, a merger including the merger of a subsidiary and parent entity, consolidation, or the creation of a subsidiary or affiliate entity, shall take place until a written request has been filed with City requesting approval of the sale, transfer, or corporate change and such approval has been granted or deemed granted, provided, however, that said approval shall not be required where Grantee grants a security interest in its Franchise and/or assets to secure an indebtedness. The foregoing notwithstanding, Grantee must seek approval of any transaction constituting a transfer under state law. b. Any sale, transfer, exchange or assignment of stock in Grantee, or Grantee’s parent corporation or any other entity having a controlling interest in Grantee, so as to create a new controlling interest therein, shall be subject to the requirements of this Section 10, Paragraph 5. The term “controlling interest” as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. In any event, as used herein, a new “controlling interest” shall be deemed to be created upon the acquisition through any transaction or group of transactions of a legal or beneficial interest of fifteen percent (15%) or more by one Person. Acquisition by one Person of an interest of five percent (5%) or more in a single transaction shall require notice to City. c. The Grantee shall file, in addition to all documents, forms and information required to be filed by applicable law, the following: 1. All contracts, agreements or other documents that constitute the proposed transaction and all exhibits, attachments, or other documents referred to therein which are necessary in order to understand the terms thereof. 2. A list detailing all documents filed with any state or federal agency related to the transaction including, but not limited to, the MPUC, the FCC, the FTC, the FEC, the SEC or MnDOT. Upon request, Grantee shall provide City with a complete copy of any such document; and 3. Any other documents or information related to the transaction as may be specifically requested by the City. d. City shall have such time as is permitted by federal law in which to review a transfer request. 32 e. The Grantee shall reimburse City for all the legal, administrative, and consulting costs and fees associated with the City’s review of any request to transfer. Nothing herein shall prevent Grantee from negotiating partial or complete payment of such costs and fees by the transferee. Grantee may not itemize any such reimbursement on Subscriber bills, but may recover such expenses in its subscriber rates. f. In no event shall a sale, transfer, corporate change, or assignment of ownership or control pursuant to subparagraph (a) or (b) of this Section 10 Paragraph 5 be approved without the transferee becoming a signatory to this Franchise and assuming all rights and obligations thereunder, and assuming all other rights and obligations of the transferor to the City including, but not limited to, any adequate guarantees or other security instruments provided by the transferor. g. In the event of any proposed sale, transfer, corporate change, or assignment pursuant to subparagraph (a) or (b) of this Section 10, Paragraph 5, City shall have the right to purchase the System for the value of the consideration proposed in such transaction. City’s right to purchase shall arise upon City’s receipt of notice of the material terms of an offer or proposal for sale, transfer, corporate change, or assignment, which Grantee has accepted. Notice of such offer or proposal must be conveyed to City in writing and separate from any general announcement of the transaction. h. City shall be deemed to have waived its right to purchase the System pursuant to this Section only in the following circumstances: i. If City does not indicate to Grantee in writing, within sixty (60) days of receipt of written notice of a proposed sale, transfer, corporate change, or assignment as contemplated in Section 10, Paragraph 5(g) above, its intention to exercise its right of purchase; or ii. It approves the assignment or sale of the Franchise as provided within this Section. i. No Franchise may be transferred if City determines Grantee is in noncompliance of the Franchise unless an acceptable compliance program has been approved by City. The approval of any transfer of ownership pursuant to this Section shall not be deemed to waive any rights of City to subsequently enforce noncompliance issues relating to this Franchise even if such issues predated the approval, whether known or unknown to City. SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS 1. Discriminatory Practices Prohibited. Grantee shall not deny service, deny access, or otherwise discriminate against Subscribers (or group of potential subscribers) or general citizens on the basis of race, color, religion, national origin, sex, age, status as to public 33 assistance, affectional preference, or disability. Grantee shall comply at all times with all other applicable federal, state, and city laws, and all executive and administrative orders relating to nondiscrimination. 2. Subscriber Privacy. a. No signals may be transmitted from a Subscriber terminal for purposes of monitoring individual viewing patterns or practices without the express written permission of the Subscriber. 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 authorization. The authorization shall be revocable at any time by the Subscriber without penalty of any kind whatsoever. Such permission shall be required for all channel activity planned for the purpose of monitoring individual viewing patterns or practices. b. No lists of the names and addresses of Subscribers or any lists that identify the viewing habits of Subscribers shall be sold or otherwise made available to any party other than to Grantee or its agents for Grantee’s service business use or to City for the purpose of Franchise administration, and also to the Subscriber subject of that information, unless Grantee has received specific written authorization from the Subscriber to make such data available. 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 authorization. The authorization 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. SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS 1. Unauthorized Connections or Modifications Prohibited. It shall be unlawful for any firm, Person, group, company, corporation, or governmental body or agency, without the express consent of the Grantee, to make or possess, or assist anybody in making or possessing, any unauthorized connection, extension, or division, whether physically, acoustically, inductively, electronically or otherwise, with or to any segment of the System or receive services of the System without Grantee’s authorization. 2. Removal or Destruction Prohibited. It shall be unlawful for any firm, Person, group, company, or corporation to willfully interfere, tamper, remove, obstruct, or damage, or 34 assist thereof, any part or segment of the System for any purpose whatsoever, except for an y rights City may have pursuant to this Franchise or its police powers. 3. Penalty. Any firm, Person, group, company, or corporation found guilty of violating this section may be fined not less than Twenty Dollars ($20.00) and the costs of the action nor more than Five Hundred Dollars ($500.00) and the costs of the action for each and every subsequent offense. Each continuing day of the violation shall be considered a separate occurrence. SECTION 13. MISCELLANEOUS PROVISIONS 1. Franchise Renewal. Any renewal of this Franchise shall be performed in accordance with applicable federal, state and local laws and regulations. The term of any renewed Franchise shall be limited to a period not to exceed fifteen (15) years. 2. Work Performed by Others. All applicable obligations of this Franchise shall apply to any subcontractor or others performing any work or services pursuant to the provisions of this Franchise, however, in no event shall any such subcontractor or other performing work obtain any rights to maintain and operate a System or provide Cable Service. Grantee shall provide notice to City of the name(s) and address(es) of any entity, other than Grantee, which performs substantial services pursuant to this Franchise. 3. Amendment of Franchise Ordinance. Grantee and City may agree, from time to time, to amend this Franchise. Such written amendments may be made subsequent to a review session pursuant to Section 7.5 or at any other time if City and Grantee agree that such an amendment will be in the public interest or if such an amendment is required due to changes in federal, state or local laws. Provided, however, nothing herein shall restrict City’s exercise of its police powers or City’s authority to unilaterally amend Franchise provisions to the extent permitted by law. 4. Compliance with Federal, State and Local Laws. a. If any federal or state law or regulation shall require or permit City or Grantee to perform any service or act or shall prohibit City or Grantee from performing any service or act which may be in conflict with the terms of this Franchise, then as soon as possible following knowledge thereof, either party shall notify the other of the point in conflict believed to exist between such law or regulation. Grantee and City shall conform to state laws and rules regarding cable communications not later than one year after they become effective, unless otherwise stated, and to 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 35 the terms, provisions and conditions hereof shall, in all other respects, continue to be effective and complied with provided the loss of the invalid or unenforceable clause does not substantially alter the agreement between the parties. In the event such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that the provision which had been held invalid or modified is no longer in conflict with the law, rules and regulations then in effect, said provision shall thereupon return to full force and effect and shall thereafter be binding on Grantee and City. 5. Nonenforcement by City. Grantee shall not be relieved of its obligations to comply with any of the provisions of this Franchise by reason of any failure or delay of City to enforce prompt compliance. City may only waive its rights hereunder by expressly so stating in writing. Any such written waiver by City of a breach or violation of any provision of this Franchise shall not operate as or be construed to be a waiver of any subsequent breach or violation. 6. Rights Cumulative. All rights and remedies given to City by this Franchise or retained by City herein shall be in addition to and cumulative with any and all other rights and remedies, existing or implied, now or hereafter available to City, at law or in equity, and such rights and remedies shall not be exclusive, but each and every right and remedy specifically given by this Franchise or otherwise existing or given may be exercised from time to time and as often and in such order as may be deemed expedient by City and the exercise of one or more rights or remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or remedy. 7. Grantee Acknowledgment of Validity of Franchise. Grantee acknowledges that it has had an opportunity to review the terms and conditions of this Franchise and that under current law Grantee believes that said terms and conditions are not unreasonable or arbitrary, and that Grantee believes City has the power to make the terms and conditions contained in this Franchise. 8. Force Majeure. The Grantee shall not be deemed in default of provisions of this Franchise or the City Code where performance was rendered impossible by war or riots, labor strikes or civil disturbances, floods or other causes beyond the Grantee’s control, and the Franchise shall not be revoked or the Grantee penalized for such noncompliance, provided that the Grantee, when possible, takes immediate and diligent steps to bring itself back into compliance and to comply as soon as possible, under the circumstances, with the Franchise without unduly endangering the health, safety and integrity of the Grantee’s employees or property, or the health, safety and integrity of the public, the Rights-of-Way, public property or private property. SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS 1. Publication: Effective Date. This Franchise shall be published in accordance with applicable local and Minnesota law. The Effective Date of this Franchise shall be the date of acceptance by Grantee in accordance with the provisions of Section 14, Paragraph 2. 36 2. Acceptance. a. Grantee shall accept this Franchise within sixty (60) of its enactment by the City Council, unless the time for acceptance is extended by City. Such acceptance by the Grantee shall be deemed the grant of this Franchise for all purposes provided, however, this Franchise shall not be effective until all City ordinance adoption procedures are complied with and all applicable timelines have run for the adoption of a City ordinance. In the event acceptance does not take place, or should all ordinance adoption procedures and timelines not be completed, this Franchise and any and all rights granted hereunder to Grantee shall be null and void. b. Upon acceptance of this Franchise, Grantee and City shall be bound by all the terms and conditions contained herein. c. Grantee shall accept this Franchise in the following manner: i. This Franchise will be properly executed and acknowledged by Grantee and delivered to City. ii. With its acceptance, Grantee shall also deliver any grant payments, performance bond and insurance certificates required herein that have not previously been delivered. Passed and adopted this day of , 2015. ATTEST: CITY OF ARDEN HILLS By: _______________________________ By: _____________________________ Its: ______________________________ Its: ________________________ ACCEPTED: This Franchise is accepted and we agree to be bound by its terms and conditions. Dated: ____________________________ By: _____________________________ Its: ________________________ Ex. A 1 EXHIBIT A - INDEMNITY AGREEMENT INDEMNITY AGREEMENT made this ____ day of ___________________, 2015, by and between Qwest Broadband Services, Inc., a Delaware Corporation, party of the first part, hereinafter called “CenturyLink,” and the City of Arden Hills, a Minnesota Municipal Corporation, party of the second part, hereinafter called “City” and the North Suburban Communications Commission, a Minnesota Municipal Joint Powers entity, hereinafter called “Commission.” WITNESSETH: WHEREAS, the City of Arden Hills has awarded to Qwest Broadband Services, Inc. a franchise for the operation of a cable communications system in the City; and WHEREAS, the City has required, as a condition of its award of a cable communications franchise, that it and the Commission be indemnified with respect to all claims and actions arising from the award of said franchise. NOW THEREFORE, in consideration of the foregoing promises and the mutual promises contained in this agreement and in consideration of entering into a cable television franchise agreement and other good and valuable consideration, receipt of which is hereby acknowledged, CenturyLink hereby agrees, at its sole cost and expense, to fully indemnify, defend and hold harmless the City and the Commission, its officers, boards, commissions, employees and agents against any and all claims, suits, actions, liabilities and judgments for damages, cost or expense (including, but not limited to, court and appeal costs and reasonable attorneys' fees and disbursements assumed or incurred by the City in connection therewith) arising out of the actions of the City and Commission in granting a franchise to CenturyLink. This includes any claims by another franchised cable operator against the City that the terms and conditions of the CenturyLink franchise are less burdensome than another franchise granted by the City or that the CenturyLink Franchise does not satisfy the requirements of applicable federal, state, or local law(s). The indemnification provided for herein shall not extend or apply to any acts of the City or Commission constituting a violation or breach by the City or Commission of the contractual provisions of the franchise ordinance, unless such acts are the result of a change in applicable law, the order of a court or administrative agency, or are caused by the acts of CenturyLink. The City or Commission shall give CenturyLink reasonable notice of the making of any claim or the commencement of any action, suit or other proceeding covered by this agreement. The City and Commission shall cooperate with CenturyLink in the defense of any such action, suit or other proceeding at the request of CenturyLink. The City and Commission may participate in the defense of a claim, but if CenturyLink provides a defense at CenturyLink’s expense then CenturyLink shall not be liable for any attorneys' fees, expenses or other costs that City or Commission may incur if it chooses to participate in the defense of a claim, unless and until separate representation is required. If separate representation to fully protect the interests of both parties is or becomes necessary, such as a conflict of interest, in accordance with the Minnesota Rules of Professional Conduct, between the City or the Commission and the counsel selected by CenturyLink to represent the City and/or the Commission, Century Link shall pay, from the date Ex. A 2 such separate representation is required forward, all reasonable expenses incurred by the City or the Commission in defending itself with regard to any action, suit or proceeding indemnified by CenturyLink. Provided, however, that in the event that such separate representation is or becomes necessary, and City or the Commission desires to hire a counselor any other outside experts or consultants and desires CenturyLink to pay those expenses, then City and/or the Commission shall be required to obtain CenturyLink's consent to the engagement of such counsel, experts or consultants, such consent not to be unreasonably withheld. Notwithstanding the foregoing, the parties agree that the City or Commission may utilize at any time, at its own cost and expense, its own attorney or outside counsel with respect to any claim brought by another franchised cable operator as described in this agreement. The provisions of this agreement shall not be construed to constitute an amendment of the cable communications franchise ordinance or any portion thereof but shall be in addition to and independent of any other similar provisions contained in the cable communications franchise ordinance or any other agreement of the parties hereto. The provisions of this agreement shall not be dependent or conditioned upon the validity of the cable communications franchise ordinance or the validity of any of the procedures or agreements involved in the award or acceptance of the franchise, but shall be and remain a binding obligation of the parties hereto even if the cable communications franchise ordinance or the grant of the franchise is declared null and void in a legal or administrative proceeding. It is the purpose of this agreement to provide maximum indemnification to the City and the Commission under the terms set out herein and, in the event of a dispute as to the meaning of this Indemnity Agreement, it shall be construed, to the greatest extent permitted by law, to provide for the indemnification of the City and the Commission by CenturyLink. This agreement shall be a binding obligation of and shall inure to the benefit of, the parties hereto and their successor's and assigns, if any. QWEST BROADBAND SERVICES, INC. Dated: __________________, 2015 By: _______________________________ Its: _______________________________ Ex. A 3 STATE OF LOUISIANA PARISH OF OUACHITA The foregoing instrument was acknowledged before me this _____ day of 2015, by ______________________, the ___________________________ of Qwest Broadband Services, Inc., a Delaware Corporation, on behalf of the corporation. ___________________________________ NOTARY PUBLIC Print Name: ________________________ Bar Roll #/Notary ID #: ________________ My Commission Expires: ______________ CITY OF ARDEN HILLS By ____________________________________ Its: ___________________________________ Department Head Responsible For Monitoring Contract __________________________ Approved as to form: __________________________ City Attorney NORTH SUBURBAN COMMUNICATIONS COMMISSION By: __________________________________ Its: __________________________________ CITY OF ARDEN HILLS, MINNESOTA In Re: CenturyLink Cable Franchise FINDINGS OF FACT Application The City is one of nine member cities of the North Suburban Communications Commission (the “NSCC”). Following the submission of an application for a cable television franchise for each member city of the NSCC, the above-entitled matter initially came before the NSCC for a public hearing on Thursday, March 5, 2015, at the NSCC’s Office located at 2670 Arthur Street, Roseville, MN 55113. Said public hearing was held open through Friday, March 13, 2015, for the purpose of allowing additional written public comments. Following the public hearing, the NSCC’s Executive Director prepared a detailed report entitled “Staff Report on CenturyLink Cable Franchise Application” (the “Staff Report”). The NSCC received and filed the Staff Report and directed NSCC staff to a negotiate cable television franchise with CenturyLink. The City, in furtherance of its obligations as a steward on behalf of consumers in the City, desires to promote competition in the delivery of cable services and to encourage the deployment of state-of-the-art broadband networks in the hope that true and effective competition between cable service providers will increase the availability and quality of cable services, spur the development of new technologies, improve customer service, minimize rate increases and generally benefit consumers of the City. The City also recognizes that any facilities based, second cable entrant is in a different position than the incumbent cable provider because the second entrant faces a significant, up front capital investment prior to having the opportunity to compete for its first customer. It is beneficial to attract and retain second entrants because of the investment made in the community 2 and the creation of new jobs, as well as the benefits to consumers by having a cable service competitor in the City. Adoption of this Franchise is, in the judgment of the City Council, in the best interests of the City and its residents. Having held a public hearing on the cable franchise application (via the NSCC) and having reviewed the negotiated cable franchise with CenturyLink, the City now makes the following findings: FINDINGS OF FACT 1. The City has the authority to grant cable television franchises to cable service providers, pursuant to applicable law. See Minn. Stat. § 238.08, Subd. 1(a); and Cable Office Report, § 4. 2. In January, 2015, the NSCC published a Notice of Intent to Franchise in a newspaper of general circulation of the City. See Staff Report, § 1. 3. CenturyLink submitted a cable franchise application (the “Application”) on February 20, 2015. See Staff Report, § 1. 4. The NSCC held a public hearing on the Application on March 5, 2015, and left the public hearing open until March 13, 2015, for the purpose of receiving additional written comments from the public. See Staff Report, Executive Summary and § 1. 5. Following the public hearing, the NSCC’s Executive Director prepared a “Staff Report on CenturyLink Cable Franchise Application” (the “Staff Report) dated April 9, 2015. The Staff Report is incorporated herein by Reference. 3 6. The Staff Report was received and filed by the NSCC on or about April 10, 2015, and the NSCC directed NSCC staff to negotiate a cable television franchise with CenturyLink. 7. NSCC staff negotiated a cable television franchise with CenturyLink and presented it to the NSCC on October 7, 2015. 8. The NSCC adopted a Findings of Fact and Recommendation on October 7, 2015, which recommended approval of the negotiated cable television franchise with CenturyLink by each member city. 9. The City held a public hearing on the CenturyLink Cable Television Franchise Ordinance on October 26, 2015. 10. The impact of competition and the challenges to a new cable operator, like CenturyLink, are identified in the Staff Report. See Staff Report, § 2. 11. The applicable federal, state and local legal cable franchising requirements, including the application requirements, are identified in the Staff Report. See Staff Report, §§ 5 - 8. 12. The Staff Report identified the issues raised by the public, including the incumbent franchised cable operator, Comcast. See Staff Report, § 9. 13. The NSCC has substantially complied with the state and local cable franchise application requirements identified in the Staff Report. 14. CenturyLink’s application substantially complied with state and local cable franchise application requirements identified in the Staff Report. 15. In the cable television franchise, CenturyLink agrees it has constructed a legacy communications system throughout the City that is capable of providing 4 telephone and internet services. CenturyLink represents that it desires to upgrade its existing legacy communications system and to install certain new facilities and equipment in the City and intends to operate a cable communications system in the City. See Staff Report, Exhibits 2 and 3. 16. CenturyLink further represents that upon completion of its cable service headend, it will be capable of providing cable communications service to a portion of the City over its existing facilities, but currently has no market penetration in the cable communications service market in the City. See Staff Report, Exhibits 2 and 3. 17. The NSCC reviewed CenturyLink’s franchise application, published a notice of intent to franchise and held a public hearing all in compliance with applicable law. See Staff Report, § 1. 18. Comcast of Minnesota, Inc. (“Comcast”), currently holds a non-exclusive franchise with the City, and, Comcast, through its predecessors in interest, has continuously held a franchise with the City since 1983. See Staff Report, § 3 19. CenturyLink will be the first facilities based franchised cable operator to compete against the incumbent provider in the City since the initial cable television franchise was granted in 1983. See Staff Report, § 3. 20. Section 621(a)(1) of the Cable Television Consumer Protection and Competition Act of 1992 was amended to provide that “. . .a franchising authority may not unreasonably refuse to award an additional competitive franchise.” In support of its mandate, the Conference Report noted that “[W]ithout the presence of another multichannel video programming distributor, a cable system faces no local 5 competition. The result is undue market power for the cable operator as compared to that of consumers . . . .” See H.R. Conf. Rep. No. 102-862, at 1231 (1992); and 621 Order at ¶ 8. 21. In the Matter of Section 621(a)(1) of the Cable Communications Policy Act of 1984 as amended by the Cable Television Consumer Protection and Competition Act of 1992, Report and Order and Further Notice of Proposed Rulemaking, MB Docket No. 05-311 (Rel. March 5, 2007) (the “621 Order”), the FCC determined, based on Section 621(a)(1), that it is unlawful for a local franchising authority to refuse to grant a competitive franchise on the basis of unreasonable build-out mandates and that such mandates “can have the effect of granting de facto exclusive franchises, in direct contravention of Section 621(a)(1)’s prohibition of exclusive cable franchises.” See 621 Order, at ¶ 40; see also, Staff Report, § 7(E). 22. According to the FCC, “[b]ecause a second provider realistically cannot count on acquiring a share of the market similar to the incumbent’s share, the second entrant cannot justify a large initial deployment. Rather a new entrant must begin offering service within a smaller area to determine whether it can reasonably ensure a return on its investment before expanding.” See Staff Report, § 7(D). 23. In the 621 Order, the FCC found that “new cable competition reduced rates far more than competition from DBS [Direct Broadcast Satellite]. Specifically, the presence of a second cable operator in a market results in rates approximately 15 percent lower than in areas without competition.” See also, Staff Report, § 2. 6 24. The FCC also found that “competition for delivery of bundled services will benefit consumers by driving down prices and improving the quality of service offerings.” See Staff Report, § 2. 25. The FCC has concluded in the 621 Order that “broadband deployment and video entry are ‘inextricably linked’ and that broadband deployment is not profitable without the ability to compete with the bundled services that cable companies provide.” See 621 Order at ¶ 51; see also, Staff Report, §§ 2 and 7. 26. The City must, pursuant to the Federal Cable Act, “allow the applicant’s cable system a reasonable period of time to become capable of providing service to all households in the franchise area.” See Staff Report, § 7(A). 27. Minnesota Statutes, Chapter 238, among other things, requires a level playing field with the incumbent relating to area served (Minn. Stat. § 238.08, Subd. 1(b)) and a mandatory build out requirement within five years in initial cable franchises (Minn. Stat. § 238.084 Subd. 1(m)(3)). See Staff Report, § 8(A)-(B), and 11(c). CenturyLink has demonstrated a good faith basis for its position that applicable federal law preempts these provisions of Chapter 238 because they constitute an unreasonable barrier to entry. See Staff Report, § 11(c), and Exhibit 3 at ¶¶ 19- 23. 28. CenturyLink claims the fact that these two provisions of the Minnesota Statutes constitute an unreasonable barrier to entry in the City is evidenced in part by the fact that there has been no facilities-based competitor since the initial cable communications franchise was granted. See Staff Report, Exhibit 3 at ¶¶ 19-23. CenturyLink has agreed to fully defend, indemnify and hold the City and the 7 NSCC harmless in the event this cable television franchise agreement is legally challenged. See Staff Report, § 11(c). 29. The cable television franchise ordinance is substantially similar to the Comcast cable television franchise, but also addresses a reasonable build-out of the City, and economic redlining. 30. The reasonable build-out provisions in the cable television franchise satisfy the state franchise requirement of requiring the cable system to be substantially complete within five (5) years and the federal franchise requirement of allowing a new cable service provider a reasonable period of time to become capable of providing cable service to all households in the franchise area. See Minn. Stat. § 238.084, Subd. 1(m); 47 U.S.C. § 541(a)(4)(A); and Staff Report, §§ 7(A), 7(D)- 7(E), 8(B), and 11(c). 31. The 5-year cable television franchise requires CenturyLink to initially construct its system to serve fifteen percent (15%) of the City over 2 years. CenturyLink is required to make its best efforts to complete its initial deployment in less than 2 years and is required to equitably serve households throughout the City, including a significant number of households below the minimum income of the City. Quarterly meetings will allow the City and the NSCC to monitor CenturyLink’s progress and compliance with the cable franchise and, if CenturyLink has market success, the cable television franchise has provisions to accelerate the construction of the cable communications system with the goal being complete coverage of the City by the end of the franchise term. 8 32. The state’s cable franchising level playing field statute is satisfied because the cable television franchise requires (1) CenturyLink to pay the same franchise fee as Comcast; (2) the same area of coverage as Comcast; and (3) similar, and in some instances greater, public educational and governmental access requirements. See Minn. Stat. § 238.08, subd. 1(b); Staff Report, §§ 7(G), 8(A), and 11(d). 33. CenturyLink submitted an application that included a design for a state-of-the-art cable system that is capable or reliably providing a panoply of cable services to subscribers as required by the NSCC’s Competitive Franchising Policies and Procedures. See Staff Report, § 10(3)(b). 34. The City has considered the financial, technical, and legal qualifications of CenturyLink. See, e.g., Staff Report, § 10(3). 35. CenturyLink has the financial, technical, and legal qualifications to operate a cable communication system in the City. 36. A CenturyLink cable television franchise will provide a meaningful, distinct alternative to existing multichannel video programming distributors (including existing cable, direct broadcast satellite and other companies), will result in greater consumer choice, is in the public interest for economic development in the City. See Staff Report, Exhibits 2 and 3. CenturyLink has also promised to provide additional enhancements to PEG offerings to the City. For example, it has agreed in the franchise to provide every PEG channel in HD and to allow the City to share live programming with other cities in the Twin Cities by providing a Twin Cities Metro PEG Interconnect Network. 9 37. Consumers and residents of the City will also benefit from CenturyLink’s competitive presence because it will drive broader deployment of higher broadband speeds. See Staff Report, Exhibits 2 and 3 38. CenturyLink has agreed to an initial deployment area, and it will serve additional areas based upon its market success, as defined in the franchise agreement, which the FCC has deemed to be a reasonable deployment model. See Staff Report, § 7(E)(b). 39. The City and its citizens will benefit from facilities based competition in the cable television market. See Staff Report, § 2. 40. All prior actions of the NSCC related to the CenturyLink Cable Franchise Application are hereby ratified and approved. Therefore, based on the foregoing, the City Council has determined that it is in the best interests of the City and its residents to enter in to a cable television franchise ordinance/agreement with CenturyLink, in the form negotiated by the NSCC and that these Findings be incorporated therewith. (To appear on CenturyLink letterhead) October ___, 2015 Mr. Michael R. Bradley Bradley Hagen & Gullikson, LLC 1976 Wooddale Drive, Suite 3A Woodbury, MN 55125 Re: Voluntary Commitments Dear Mr. Bradley: The purpose of this Letter is to set forth voluntary commitments by Qwest Broadband Services, Inc. d/b/a CenturyLink (“QBSI”) to the North Suburban Communications Commission (the “Commission”) and its Member Cities (the “Member Cities”) that are in addition to the obligations contained in the Franchise Agreement, to be adopted by each Member City and executed by QBSI (hereinafter the “Franchise”). The items set forth below have been negotiated in good faith and mutually agreed to by the parties. QBSI agrees that at no time shall it b e permitted to in any way offset from franchise fee payments owed the City or pass through as a separate line item on Subscriber bills any costs associated with the voluntary commitments set forth within. 1. Complimentary Prism Cable Service. This letter will confirm that any City/Member City/Commission will not need to purchase separate internet service or any equipment in order to receive complimentary cable service from QBSI as set forth in the Franchise. The City will be allowed to choose any QBSI converter equipment for its complimentary equipment. 2. Simulcasting PEG Channels. This letter will confirm that QBSI may simulcast the City/Member City’s PEG channels in high definition (HD) and standard definition (SD). QBSI may simulcast the PEG channels in other formats provided from the City/Member City to QBSI. Simulcasting does not change the number of PEG channels being provided under each Franchise. For example, if the City is provided nine (9) PEG channels in the Franchise, QBSI may simulcast each of the 9 PEG channels in HD, and SD. 3. Cost Reimbursement. To the extent the Commission’s expenses exceeded the franchise application fee, QBSI will fully reimburse the City for all of its reasonable costs and expenses within 60 days of granting the Franchise. 4. Twin Cities Metro PEG Interconnect. The Commission and each Member City shall have the right to fully participate in the Twin Cities Metro PEG Interconnect, which will allow participants to share (send and receive) live PEG programming with one another provided the other City has agreed with QBSI to share its PEG programming. Mr. Michael R. Bradley October ____, 2015 Page 2 of 2 5. Complimentary broadband service to a City facility location. Within 90 days of executing the Franchise, QBSI shall make available complimentary commercial grade Wi-Fi enabled internet service and associated equipment at the highest speed available by Grantee to one public location (such as a community center) within each Member City. The Member City and/or the Commission shall determine the location in consultation with QBSI. QBSI shall have the option of co-branding the free public Wi-Fi with the City at said location. The Wi-Fi equipment shall be capable of providing Wi-Fi to the the primary community meeting area of the Member City location. The service level quality shall be as provided to commercial customers and this commitment shall remain in place throughout the term of the Franchise. The parties understand that voluntary commitments listed above supplement other obligations contained in the Franchise. Enforcement of the terms of this Letter of Agreement shall be consistent with the enforcement procedures set forth in the Franchise. CenturyLink stipulates that a violation of these terms by CenturyLink may be considered by the City as a violation of the Franchise and shall subject CenturyLink to all remedies available to the City under the Franchise and pursuant to applicable law. Acknowledged and agreed to this ___ day of October, 2015. Qwest Broadband Services, Inc. By: Its: Bench Copy - item added to consent agenda ,-AIZEN_HILLS MEMORANDUM DATE: October 26, 2015 TO: Honorable Mayor and City Councilmembers Sue Iverson, Acting City Administrator FROM: John Anderson,Acting Public Works Director SUBJECT: Sanitary Sewer Repair— 1323 Cannon Avenue Requested Action Motion to accept proposal from Valley-Rich Co. in the amount estimated to be $27,300 to relay the sanitary sewer at 1323 Cannon Avenue. Background The City of Arden Hills has contracted for sanitary sewer lining in 2015. A portion of a segment of sewer line to be lined has a sag in it and cannot be lined until it is relayed at the original design grade. The sag in this line is most likely due to soft soils in the area and will make this repair difficult to complete. The sag is currently allowing a large flow of ground water into the sewer system. This may be creating a void under the pipe which could lead to a settlement in the line at which point we would need to do an emergency repair to this line. This sewer serves the entire east central portion of Arden Hills. Once this segment has been relayed the entire segment will be lined from manhole 8-109 to manhole 8-108. A separate contract with Precision Tree is in place to cover the tree removal needed to prepare the site for this sewer to be relayed. Tree removal is estimated at$6,900 Two contractors were contacted to get proposals on this work. To date we have only received one quote, from Valley-Rich Co. The City routinely works with Valley-Rich Co. for emergency watermain repairs Attachments A. Location Map B. Valley-Rich Co. proposal #15395 M dated 10/26/15 Page 1 of 1 Attachment A 3434 3400 8=1 09 90 Epair location 1323 1 7 0 a 1 MWM 61, 0 32 --�'1---- 1308 13 \ 1324 1314 1308 1302 5 1317 1315 1305 1297 129 3327 1326 1320 1314 1306 3319 /�� N �iRQEENN HILLS W S Prepared by: City of Arden Hills 1323 Cannon Avenue - Sewer Repair 2/9/15 Date: 10.26.15 Bid: #15395 M 1 IlE@o Project: 1323 Cannon Ave—Sanitary Sewer Repair Location: Arden Hills,MN Site Utilities Valley-Rich Co., Inc. will provide all labor, equipment, and materials needed to replace up to 100' of 15" RCP sanitary sewer that has settled and bellied. All traffic control is included. Interlocking mat for stabilization is included. City of Arden Hills is to supply the state ROW permit, all trucking, fill and pipe bedding, tree removal/grubbing, by-pass pumping, fence removal/replacement (if required) and restoration. All work is to be billed on a time and material basis and is budgetary. Labor: $15,000 Traffic Control: $4,000 Interlocking Mats: $3,000 Mobilization and Materials: $3,800 Erosion Control: $1,500 Total Base Bid: $27,300 Note: This proposal is good for 30 days from the bid date in order to lock in our material prices with our vendors. Maximum depth of trenches and structures is assumed to be 10 feet when information is not provided. Respectfully, Matt Miklya Exclusions: Land/Lane use permits, dewatering, soil correction and/or replacement,pipe support, removal of buried obstructions, frost charges, rock excavation, restoration(other than listed above), compaction tests, hauling of excess soils, erosion control/inlet protection, hazardous material handling, irrigation, and private utility locates. 147 Jonathan Blvd. N., Ste. 4 Chaska,Minnesota 55318 Office: (952) 448-3002 Fax: (952) 448-3362 Bench Copy - item added to consent agenda ,AREN�HILLS MEMORANDUM DATE: October 26, 2015 TO: Honorable Mayor and City Councilmembers Sue Iverson, Acting City Administrator FROM: Amy Dietl, City Clerk SUBJECT: Cancellation of the November 9, 2015, City Council Meeting Background If the sanitary sewer lining item is approved tonight, the November 9, 2015, regular City Council meeting can be cancelled. Council Action Requested Motion to approve the cancellation of the November 9, 2015, regular City Council meeting. Page 1 of 1