HomeMy WebLinkAboutCity Council Packet 12-09-15_Addendum_1CITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
2077 West Larpenteur Avenue
AGENDA
December 9, 2015 at 7:00 P.M.
A.CALL TO ORDER:
B. ROLL CALL: LINDSTROM ___ HARRIS ____ BROWN THUNDER ___
LONG ___ MERCER-TAYLOR ___
STAFF PRESENT: THONGVANH____
C.PRESENTATIONS:
D. APPROVAL OF MINUTES:
1. October 28th, 2015 City Council Meeting Minutes
2. November 10th, 2015 Canvass Board Meeting Minutes
3.November 18th, 2015 City Council Meeting Minutes
E.PUBLIC HEARINGS:
1. 2016 Budget Presentation
F. CONSENT AGENDA:
1. General Disbursements through: 12/02/15 $129,897.81
Payroll through: 11/30/15 $16,956.25
2.Approval of City License(s)
3. 2016 Proposed City Fee Schedule
4.Appointment of Prosecuting Attorney
5.Appointment of City Attorney
6.Appointment of City Engineer
7.Appointment of City Auditor
8. Designation of Official Newspaper
9. 2016 Cost of Living Adjustments
10.Year End Budget Amendments
G: POLICY ITEMS:
1.Approve CenturyLink Franchise Ordinance
2.Declaration of Official Intent for Reimbursement for 2015 PMP
a.Snelling Service Drives
b.Roselawn Ave
H.INFORMATION/ANNOUNCEMENTS:
I. COMMUNITY FORUM:
J.ADJOURNMENT:
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CITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
2077 West Larpenteur Avenue
MINUTES
October 28, 2015 at 7:00 P.M.
A. CALL TO ORDER: 7:00pm
B. ROLL CALL: LINDSTROM _X__ HARRIS __X__ BROWN THUNDER _X__
LONG _X__ MERCER-TAYLOR _X__
STAFF PRESENT: THONGVANH_X___
C. PRESENTATIONS:
D. APPROVAL OF MINUTES:
1. October 14th, 2015 City Council Meeting Minutes
Approved
E. PUBLIC HEARINGS:
F. CONSENT AGENDA:
1. General Disbursements through: 10/22/15 $42,503.44
Payroll through: 10/15/15 $16,943.03
2. Approval of City License(s)
3. Appoint James Wessenberg to the Environment Commission
4. Statutory Tort Liability Limits Coverage for 2016
Council Member Long Moved, Approved 5-0
G: POLICY ITEMS:
1. Safe Route to School (SRTS) – Letter of Consent
• City Administrator Sack Thongvanh presented that MNDOT has set aside
funding of $1.7 million for the 2017 Safe Routes to School for infrastructure
construction and planning assistance. Communities can request up to $100,000-
300,000 for construction and up to $500,000 for planning assistance.
Requirements are that the project must be in a 2 mile radius of a K-8 school, 20%
match, a completed student travel tally and parent survey, and an infrastructure
improvement that is eligible. For planning assistance the requirements are for a
private or public K-12 and the city would have to complete a letter of intent (LOI)
by October 30, 2015. The LOI submission doesn’t commit the city to anything.
The full proposal is due January 8, 2016.
Council Member Mercer-Taylor Moved, Approved 5-0
Page 1 of 169
2. Hoyt Avenue Sewer Repair Quotes
City Administrator Sack Thongvanh stated that the sanitary sewer line on Hoyt
Avenue between Burton Street and Coffman Street has had multiple issues
related to sanitary sewer service connections. When Hoyt was reconstructed it
caused the private connections to be at a 90 degree angle. When the sanitary
sewer line gets backed up it is pushing down on the main.
With continued issues the sanitary sewer could back up into properties if it is not
addressed. The City of Roseville estimated costs to be at $8,000-9,000. The
Engineering Department sent out six requests for quotes and only received two
back. GF Inc. quoted at $48,480, and Dave Perkins Contracting quoted at $57,800.
The cost was higher than anticipated due to it being a small project apart from
any street improvement, and the need for contractors to excavate 25-30 feet. The
Engineering Department based the estimate on the cost of other projects done
throughout the year.
o The city is still waiting to hear from St. Paul about their involvement in
the project, and whether or not they take ownership of the main. The
reason for requesting pre-approval now is to avoid being too late in the
season to do construction if measures need to be taken.
Council Member Harris Moved, Approved 5-0
I. INFORMATION/ANNOUNCEMENTS:
Council Member Mercer-Taylor:
Mercer-Taylor returned from a sustainability event hosted in Minneapolis on October 25-28. She
was able to speak about the sustainability studies minor and the work the students are doing in
Falcon Heights, including the upcoming Sustainability Fair. There was a lot of positive feedback
about all the sustainability programs that are located in the cities. The Sustainability Fair is on
Thursday, November 19th from 5:30-8:00pm at Silverwood Park in St. Anthony.
Council Member Harris:
• Planning Commission talked about the upcoming tasks: comprehensive plan and
putting out an RFP for a consultant for the comprehensive plan.
• Friday, The Good Acre is opening and will have tours of the food hub starting at 1pm.
Council Member Long:
The Parks Commission is hosting two open houses with regard to Curtiss Field on November 9
and November 18. The online survey for Curtiss Field will be open the first week of November.
Council Member Brown Thunder:
• The NYFS board meeting takes place tomorrow morning.
• He witnessed a 95 year old man take a tumble the other day and the Falcon Heights Fire
Department and St. Anthony Police Dept. were on scene in just a few short minutes.
Mayor Lindstrom:
Voting takes place at City Hall and Falcon Heights United Church of Christ on November 3.
City Administrator Sack Thongvanh:
• Prepaid Assessments can only be paid through midnight November 13, 2015.
• Snow and ice removal notices will be sent out tomorrow.
Page 2 of 169
• The Good Acre ribbon cutting for their Open House is at 11:45am.
• Attended a Safe Routes to Schools workshop last week where they discussed many
options for safety and getting all parties involved.
• Posted information on the website about upcoming updates to the U of M’s St. Paul
campus: Bee and Pollinator Research Center, Bell Museum, Golf Course research, and
The Good Acre.
J. COMMUNITY FORUM:
K. ADJOURNMENT: 7:25pm
_____________________________
Peter Lindstrom, Mayor
Dated this 28th day of October, 2015
__________________________________
Sack Thongvanh, City Administrator
Page 3 of 169
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Page 4 of 169
CITY OF FALCON HEIGHTS
Canvass Board of the City Council
City Hall
2077 West Larpenteur Avenue
MINUTES
November 10, 2015 at 7:00 P.M.
A. CALL TO ORDER: 7:05pm
B. ROLL CALL: LINDSTROM _X__ HARRIS __X__ BROWN THUNDER _X__
LONG ___ MERCER-TAYLOR ___
STAFF PRESENT: THONGVANH_X___
C. POLICY ITEMS:
1. Canvassing Election Results
• City Administrator Sack Thongvanh stated that the City is required to hold a
meeting between November 6th to November 13th to accept and approve election
results for the Mayor’s race and three City Council positions.
Council Member Harris Moved, 3-0
H. COMMUNITY FORUM:
I. ADJOURNMENT: 7:12pm
_____________________________
Peter Lindstrom, Mayor
Dated this 10th day of November, 2015
__________________________________
Sack Thongvanh, City Administrator
Page 5 of 169
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Page 6 of 169
CITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
2077 West Larpenteur Avenue
MINUTES
November 18, 2015 at 7:00 P.M.
A. CALL TO ORDER: 7:00 pm
B. ROLL CALL: LINDSTROM ___ HARRIS _X___ BROWN THUNDER _X__
LONG ___ MERCER-TAYLOR _X__
STAFF PRESENT: THONGVANH_X___
C. PRESENTATIONS:
D. APPROVAL OF MINUTES:
1. October 28th, 2015 City Council Meeting Minutes
Approved
E. PUBLIC HEARINGS:
1. Century Link Cable Franchise
• The only service provider currently in the city is Comcast. Comcast has a non-
exclusive franchise agreement with the city. The City Council may grant
additional franchises within the city. Next steps would be to adopt the franchise
and the findings of fact on the next council meeting, December 9th.
2. Outstanding Invoices for City Services
• City Administrator Sack Thongvanh stated that the city is required to abate
certain code violations if the property owner has refused to remedy the violation.
With proper notice the city has authority to do so. If the invoice is not paid on
time, the city can assess the property for services. If not paid, the cost for services
can be put on their tax roll. The City Services were utilized at 1354 California to
remove obnoxious weeds and vegetation. The cost was $696.32.
Council Member Harris Moved, Approved 3-0
F. CONSENT AGENDA:
1. General Disbursements through: 11/12/15 $138,349.30
Payroll through: 11/15/15 $30,560.26
2. Approval of City License(s)
3. Charitable/Lawful Gambling License for Falcon Heights Elementary PTA
4. Remove Amino Mohamed for the Community Engagement Commission
5. City Administrator (Sack Thongvanh) 6 Month Employee Step Adjustment
Council Member Brown Thunder Moved, Approved 3-0
Page 7 of 169
G: POLICY ITEMS:
1. Senior Citizen Assessment Deferral Program for 1780 N. Snelling Ave
• City Administrator Sack Thongvanh stated that the city received a request from
Ms. Mary K. Olson for an Assessment Deferral. Staff recommends a 10 year
period of deferment.
• Council Member Harris states that the property taxes interest rate for
outstanding special assessments is an appropriate rate. The total accumulated
interest is to be made due with final payment.
Council Member Harris Moved, Approved 3-0
I. INFORMATION/ANNOUNCEMENTS:
Council Member Harris:
• No Updates
Council Member Brown Thunder:
• At the NYFS Board Meeting they discussed pushing their senior chore program. They
would like to promote enrollment for this program.
Council Member Mercer-Taylor:
• She attended a north suburban communities League of Women Voters event on public
safety, with a focus on community police relationships and racial profiling. There were
in-depth interviews with the police chiefs and the sheriff’s office. There was discussion
on greater outreach with the Somali community. In the coming months the in-depth
interviews and report will be released by the League.
• The 4th Annual Sustainability Fair will be tomorrow from 5:30-8pm. There will be
presentations from University students, non-profit booths, and food.
City Administrator Sack Thongvanh:
• After speaking to the Grant Administrator and City Engineer about the time constraints
of the Safe Routes to School Grant, the city has decided to submit a letter of intent for
planning resources versus infrastructure. This will allow for additional time for
planning and discussion. The request will vary based on the recommendation from the
City Engineer, but would likely be between $25,000 to $30,000.
• The Truth in Taxation Meeting will be presented at the December 9th Council Meeting.
There will be an addendum for the packet closer to the Council Meeting date.
• The Parks Commission held the second and final Open House meeting on the Curtiss
Field Park Master Plan today. The survey will still be available online until November
30. Staff will provide tabulated surveys to the Parks Commission so they can provide a
recommendation to Council.
• A Council retreat will be planned for either February or March.
J. COMMUNITY FORUM:
K. ADJOURNMENT: 8:09 pm
_____________________________
Beth Mercer-Taylor, Mayor Pro Tem
Dated this 18th day of November, 2015
__________________________________
Sack Thongvanh, City Administrator
Page 8 of 169
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item 2016 TNT Hearing and Adoption of Tax Levy and Budget
Description
Each year the City Council is required to adopt a budget and tax levy to fund City
operations. This action must be completed before the end of the year, and the
adopted levy is then provided to Ramsey County so they can produce property tax
statements for each parcel in the County. On September 23rd, the City Council
adopted a preliminary levy and established December 9th as the date at which the
public would be given an opportunity to address the Council about the proposed
budget and tax levy.
Before the Council, are a proposed property tax levy of $1,173,447 and a General
Fund Budget of $1,923,292. The levy and budget with a comparison to previous
years is detailed below:
2014 Levy 2015 Levy Proposed 2016
Levy
% Increase
(Decrease)/
2014 to 2015
Ad Valorem $944,570 $1,014,116 $1,046,183 3.2%
Debt Service $139,280 $69,734 $127,264 82.5%
Total $1,083,850 $1,083,850 $1,173,447 8.3%
2014 General
Fund Budget
2015 General
Fund Budget
Proposed 2016
General Fund
Budget
% Increase
2015 to 2016
$1,779,118 $1,877,165 $1,923,292 2.5%
The impact of this proposed levy on a median valued home, which in 2016 is
assessed at $247,700 (-1.5% decrease over 2015), is estimated to result in an increase
of $45, in the City portion of the homeowner’s taxes.
Meeting Date December 9, 2015
Agenda Item Public Hearing E1
Attachment Budget Introduction Letter
Resolutions(s)
Submitted By Sack Thongvanh, City Administrator
Families, Fields and Fair __________________________ Page 9 of 169
A full presentation with more details will be presented at the City Council meeting
and will be available on the City’s website. In addition, attached to this report is the
budget cover letter which goes into more detail about specific budget line items,
factors influencing the proposed budget, and historical information.
Budget Impact This budget preserves the core functions of the City’s current operations.
Attachment(s) • Budget Introduction Letter
• PowerPoint Presentation
• Resolutions 15-45 Approving 2016 Tax Levy
• Resolution 15-46 Approving 2016 City Budget
Due to the size and cost of printing the 2016 Budget, the document is available on the
City’s website: www.falconheights.org and at City Hall.
Action(s)
Requested
Staff recommends that the Falcon Heights City Council hold a public hearing and
receive comment. Once the hearing is closed, staff recommends that the City
Council adopt attached resolution regarding the 2016 Tax Levy and regarding the
2016 City of Falcon Heights Budget.
Page 10 of 169
2016 Budget
Hearing
Sack Thongvanh, City Administrator
Roland Olson, Finance Director
Page 11 of 169
Factors That Affect Taxes
Changes in the tax levy (or spending decision) made by the city,
county, school, or special taxing authority
Changes in the market value of your property
Legislative changes
New taxes approved by referendum are applied to market value (not tax capacity)
Page 12 of 169
Ramsey County Tax Statement
Page 13 of 169
Market Value Exclusion
In 2011, State eliminated Market Value Homestead Credit (MVHC) and replaced it with Market Value Exclusion.
Taxable Market Value is what is used to calculate your taxes.
Benefit to properties decreases as values rise
Only applies to homesteaded properties
Page 14 of 169
Ramsey County Median Values
2015 Median
Value
2016 Median
Value
% Change
Arden Hills $295,100 $300,300 1.8%
Falcon Heights $251,500 $247,700 -1.5%
Gem Lake $214,000 $227,800 6.4%
Lauderdale $175,000 $186,550 6.6%
Little Canada $216,950 $223,900 3.2%
Maplewood $187,300 $190,800 1.9%
Mounds View $168,700 $174,600 3.5%
New Brighton $209,200 $218,600 4.5%
North St. Paul $148,900 $157,500 5.8%
Roseville $216,500 $216,400 0.0%
St. Paul $145,000 $151,500 4.5%
Shoreview $247,500 $247,500 2.5%
Vadnais Heights $224,900 $234,300 4.2%
White Bear Lake $181,300 $184,700 1.9%
True 2016 TAXABLE market value of median valued home is $232,753 Page 15 of 169
2016 Property Tax Allocation
COUNTY,
45.3%
SCHOOL
DISTRICT,
32.5%
CITY
18.7%
SPECIAL
DISTRICT,
3.5%
Page 16 of 169
Ramsey County Tax Rates
City Estimated 2016
Rate
Final 2015
Rate
Falcon Heights 25.840% 23.470%
Arden Hills 26.382% 27.294%
Little Canada 30.869% 30.696%
Maplewood 46.985% 46.353%
Mounds View 40.097% 42.886%
New Brighton 43.008% 42.939%
North St. Paul 38.669% 35.169%
Roseville 39.211% 39.909%
St. Paul 42.477% 43.827%
Shoreview 34.945% 34.873%
Vadnais Heights 26.796% 26.904%
White Bear Lake 19.684% 20.368% Page 17 of 169
City Tax Rate History
23.955%
20.991%
19.302%
18.599%
18.554%
19.196%
20.660%21.521%
23.499%
27.884%
24.819%
23.459%
25.840%
0.000%
5.000%
10.000%
15.000%
20.000%
25.000%
30.000%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Page 18 of 169
History of Transfer of
Reserves to General Fund
135,676
204,315
229,832
161,337
113,797
21,732
112,400
71,917
126,075
80,000
40,000
--
135,676
204,315
160,000
4,000
65,000
0
77,400
23,800
56,075
80,000
-- -
50,000
100,000
150,000
200,000
250,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Budgeted
Actual
Page 19 of 169
History of Property Tax Levy
$874,338
$865,008
$865,008
$895,700
$953,576
$974,232
$1,022,944
$1,038,290
$1,017,944
$1,084,007
$1,083,850
$1,083,850
$1,173,447
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Page 20 of 169
History of Property Tax
Levy, cont.
Overall levy has increased by $299,109 since 2004
The police contract and 911 dispatching costs together have
increased $235,146 – an average of $19,595 per year
For 2016, the 911 dispatching costs total $36,115– an increase of $60
from 2015, while the police contract increased $18,675
If the police contract and 911 dispatching costs are taken out, the
rest of the levy has increased by $63,963 ($5,330 per year) since 2004
Page 21 of 169
Property Tax Impacts
Payable 2016 Payable 2015 Payable 2014
Median
Valued Home
$247,700 $251,500 $224,900
Taxable
Median
Value after
Exclusion
$232,753 $236,895 $207,901
Tax Capacity
(1% of value)
2328 2369 2079
City Tax Rate 25.840% 23.459% 24.819%
City Taxes 601 $556 $515
Net Change Prior
Year $45 Increase $41 Increase $46 Decrease
Page 22 of 169
Estimated Percentage Change in 2016
Property Tax On Median Value Single
Family Properties (as of 11/13/15)
Page 23 of 169
2016 City Taxes on a Median
Value Home in Ramsey County
913
813
615
719 675
1001
601 624
989
0
100200
300
400
500
600
700
800900
1000
1100
1200
Page 24 of 169
3505 3371 3164
3503 3224
3703
3150 3277
3818
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2016 Total Property Taxes on a Median
Value Home in Ramsey County
Page 25 of 169
Stratified Change Property
Taxes 2015 to 2016
TOTAL # PARCELS IN FALCON
HEIGHTS: 1300
Cumulative
% of
Total
% of
total
Decrease or
"0" 665 51% 51%
$1 to $100 262 20% 71%
$101 to $200 219 17% 88%
$201 to $300 70 5% 93%
$301 to $400 31 3% 96%
$401 to $500 19 1% 97%
> $500 34 3% 100%
Total: 1300 100%
Page 26 of 169
2016 Expenditures
General Fund,
$1,923,292
Special
Revenue
Fund, $209,774
Debt Service
Fund, $165,293
Capital
Projects Fund,
$396,400
Enterprise
Fund, $886,060
Page 27 of 169
Cities Receive Sales Tax
Exemption
Effective 2014
•2013 MN State Legislature passed State Law
changes exempting cities from sales taxes
•General Fund operational expenditure savings
are estimated at around $5,500 yearly
Page 28 of 169
2016 Budgeted General
Fund Expenditures By Dept.
Public Works,
18.0%
Public Safety -
Police, 36.0%
Public Safety
-Fire, 8.0%
Public Safety -
Other, 5.0%
General
Government,
33.0%
Page 29 of 169
2016 General Fund
Expenditures by Department
% of Total Expenditures by Department
Legislative
Administrative
Finance
Legal
Elections
Communications
Planning/Inspections
Emergency Preparedness
Police
Prosecution
Firefighting
Fire Relief
City Hall and Grounds
Streets
Engineering
Tree Program
Park Maint/Admin
Contingency
Page 30 of 169
Levy Comparisons
2014 2015 Proposed
2016
%
Change
Ad
valorem
levy
$944,570 $1,014,116 $1,046,183 + $32,067
+ 3.2%
Debt levy $139,280 $69,734 $127,264 + $57,530
+ 82.5% *
Total levy $1,083,850 $1,083,850
$1,173,447 + 2.46%
* In 2015 a transfer of $100,000 from reserves to decrease debt levy.
Page 31 of 169
2016 Proposed Budget
•Consolidated dispatch fees had an increase of $60.
•Police budget increased by $18,675.
•7.3% renewal rate for health insurance through PEIP
•Wage increase by 3%.
•Expect license and permit revenues comparable to
2015 levels.
Page 32 of 169
2016 Proposed Budget, cont.
There will be no transfer of reserve funds for general operating budget
LGA receipts from State of MN
increased $9,309. Fiscal Disparities
decreased $18,441
Overall, general fund expenditures
and revenues are $46,127, or 2.46%,
higher than the 2015 operating budget.
Page 33 of 169
Additional Information
Ramsey County Proposed Budget and Levy Hearing – Held Nov 30th – 6:30 pm – Ramsey County Library - Roseville
Roseville School District Proposed Budget and Levy Hearing – Held Dec 15th – 6:00 pm - District Service Center - Roseville
State of Minnesota Property Tax Refund Programs
www.taxes.state.mn.us
Regular Refund – based on income
Circuit Breaker – if taxes increased over 12% and $100
Senior Citizen Tax Deferral through City & Ramsey County
Disabled Veteran Market Value Exclusion
To contest your property valuation to be used for 2017 property taxes – watch for notices in the mail during March 2016
Page 34 of 169
For More Information:
Visit: www.falconheights.org
Call Sack Thongvanh, City Administrator at (651)792-7600
E-mail: Sack.Thongvanh@falconheights.org
Page 35 of 169
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Page 36 of 169
CITY OF FALCON HEIGHTS
COUNCIL RESOLUTION
December 9, 2015
No. 15-45
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
RESOLUTION ADOPTING THE 2015 TAX LEVY, COLLECTIBLE IN 2016, FOR
THE CITY OF FALCON HEIGHTS, COUNTY OF RAMSEY, STATE OF
MINNESOTA
BE IT RESOLVED by the Mayor and City Council of the City of Falcon Heights, County
of Ramsey, State of Minnesota, that the following sums of money be levied for the
current year 2015, collectible in 2016, upon the taxable property in the City of Falcon
Heights, for the following purposes:
CERTIFIED LEVY
GENERAL FUND
$1,046,183
DEBT SERVICE
(G.O. Improvement, Series 2013A)
$27,150
DEBT SERVICE
(G.O. Fire Truck Bond, Series 2013B)
$100,114
TOTAL LEVY $1,173,447
BE IT FURTHER RESOLVED that the City Administrator is hereby directed to transmit
a certified copy if this Resolution to the County Auditor and should extend the tax levy
in the amount of $1,173,447 to be collected for the year 2016.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Moved by: Approved by: ________________________
Peter Lindstrom
Mayor
LINDSTROM ____ In Favor Attested by: ________________________
BROWN THUNDER Sack Thongvanh
HARRIS ____ Against City Administrator
LONG
MERCER-TAYLOR
Page 37 of 169
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Page 38 of 169
December 9, 2015
Honorable Mayor Lindstrom
And
Members of the City Council
City of Falcon Heights
I am pleased to present for your consideration the 2016 City of Falcon Heights operating budget. This
document is important not only as a budgetary tool, but also communicates to our residents, business
community, and property owners the goals and priorities of the city for the upcoming year.
The City of Falcon Heights is primarily a residential community situated near the center of the Minneapolis
and St. Paul metropolitan area. The city is at or near full development, with the economy consisting of
light industry, commerce, and agricultural related businesses. Economic conditions and employment
remain stable with the University of Minnesota St. Paul campus, Spire Federal Credit Union, and the
Minnesota State Fairgrounds providing a diversified economic employment base.
FORM OF GOVERNMENT
The City of Falcon Heights operates under the Statutory Plan A form of government, where the policy
decisions are made by the city council, but the administrative duties are delegated to the city
administrator. One of the primary administrative duties of the city administrator is to prepare an annual
budget for approval by the council.
BUDGET PROCESS
In June, city staff starts the preparation of their budget requests for the next calendar year (Falcon
Heights' fiscal year is the calendar year). This is accomplished by correlating the city’s budget goals into
financial projections, while at the same time; revenues are estimated for the next year. During July, the
staff submits their budget requests for the general, special revenue, debt service, and enterprise funds to
the city administrator and city finance director. Budget requests are reviewed to determine if they are
accurate, reasonable, and well justified. Staff requests are modified according to projected revenues.
Once completed, a preliminary budget is prepared based upon initial revenue estimates, departmental
budget requests, historical trends, and financial policies.
In July, the city administrator and finance director meet with staff members individually. During these
meetings, any recommended revisions are discussed and the city administrator makes the final decision as
to what will be included in the proposed budget. The finance director uses this information to prepare
the proposed budget document.
In August, budget workshops open to the public are held where the city administrator presents the
proposed budget to the city council. The city council reviews the proposed budget with staff, who then
adjusts the budget for any changes the council recommends. In early September, the city certifies a
proposed levy and budget to Ramsey County. The proposed levy is published and parcel specific notices
are mailed to property owners. The council holds a public hearing on the proposed budget in early
December and afterward approves the final budget. The city's property tax levy, which is necessary to
finance the approved budget, is then certified to Ramsey County. Ramsey County collects the property
taxes on behalf of the city as well as other taxing jurisdictions.
1-1 Page 39 of 169
During the fiscal year, line items may be overspent as long as the total activity budget is not overspent.
City staff may recommend changes in the activity budget to the city council, which can then approve or
disapprove the amendment. The council may approve an activity to be overspent if funding is available,
but may not amend the property tax levy.
BUDGET ORGANIZATION
The city's annual budget consists of five basic sections:
1. Introductory section
2. Governmental funds
3. Enterprise funds
4. Ten year capital improvement plan
5. Appendixes
The introductory section includes the city's goals for 2016, fiscal policies and budget summary
information. The governmental funds section includes revenue and expenditure history and projections
from 2013 to 2016 for the general, special revenue, debt service, and capital projects funds. A fund is
defined as an independent fiscal and accounting entity with a self-balancing set of accounts and resources
which are dedicated for a specific purpose. The city uses the modified accrual basis of accounting for all
governmental funds, in which revenues are recognized when they become measurable and available and
expenditures are generally recognized when the related fund liabilities are incurred.
Enterprise funds are those operated in a manner similar to private business enterprises, where the costs
of providing services (expenses) are to be recovered primarily on a user-charge basis to the general public
(revenues). The city uses the accrual basis of accounting for its enterprise fund (sanitary sewer, storm
sewer), in which revenues are recognized when they are earned and expenses are recognized when they
are incurred.
The city's ten-Year Capital Improvement Plan (C.I.P.) is a tabulation of projects and equipment that are
being recommended with potential funding sources for each. A capital asset is defined as an expenditure
which results in the acquisition or replacement of a fixed asset which costs $1,000 or more and/or has a
life expectancy of three years or more. The city uses the threshold level of $5,000 to determine if the
capital asset is listed in the general fixed asset account group. The Ten-Year Capital Improvement Plan is
approved by the city council, but it is a planning document only and approval carries no appropriation
authority. All appropriations are made as a result of the annual budgeting process.
A glossary of terms is provided to assist in a better understanding of this budget. Appendixes include
additional information to support underlying budget assumptions.
2016 BUDGET SUMMARY
The 2011 State of Minnesota legislative session, or rather the special session that ended the state
government shutdown, enacted sweeping changes to how property taxes are calculated at the local
government level. The budget compromise negotiated between the governor and legislature eliminated
the Market Value Homestead Credit (MVHC) program. In theory, this program served as a credit to local
units of government and helped reduce the property tax impact on homesteaded properties. Over the
past several years, however, this program was rarely fully funded and left cities such as Falcon Heights in
the position of having to make up this loss of revenue through cuts in LGA funding. . During the 2011
legislative special session, the MVHC program was eliminated and replaced with a Market Value Exclusion,
where a portion of residential homestead properties value was eliminated for tax purposes. In effect, this
action reduced the taxable market value of property in Falcon Heights by 4% FOR 2011.
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For 2016, the Market Value Exclusion continues. The median Estimated Value dropped from 251,500 to
247,700 resulting in a decrease of 1.5% value.
In addition, the city’s fiscal disparities distribution decreased $18,441, or 9.3%.
Personnel
As in most government and service related organizations, the vast majority of our spending is the result of
employing workers and their associated benefits.
Health Insurance
2016 will be the seventh year where the city participates in the Public Employees Insurance Program. PEIP
is a plan offered through the State of Minnesota to cities and other organizations throughout the state.
The 2016 renewal rate is 7.3%. Employees will continue to purchase other insurance coverages (dental,
life, etc.) through Ramsey County.
Personnel Costs
We have included a 3% cost of living adjustment for regular employees in 2016. There was a 3% COLA in
2015.
The part time Administrative Coordinator position moves to a full time position as of July 1, 2016.
Individual Budget Summaries
The areas below highlight department budgets where there are notable changes from the 2015 budget:
Legislative (111): There is an additional $2,000 increase for conferences/education/.
training budget line item for the council members.
Administrative (112): The Part time employee position is increased to full time status as of
July 1, 2016.
Police (122): Reflects 2nd year of three-year contract negotiated during 2014. Also
reflects a slight decrease in dispatching expenses associated with
consolidated dispatch center. The increase in the police budget for
2016 totals $18,675 with an additional dispatching costs increasing
$60.
Expenditure Summary
The proposed budget reflects a modest increase in expenditures of $46,127, or 2.46%
Revenues:
Local Government Aid (LGA)
The city’s LGA allocation is projected to increase $9,309.
Licenses, Permits, and Charges for Service
Estimated revenues from building permits and licenses are projected to remain relatively stable as
compared to 2015. We also are budgeting about the same in other revenues such as facility rentals,
zoning fees, accident clean-up fees, and in fines and forfeitures.
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Transfer from Reserve Funds
In order to provide a balanced budget, in the past, a transfer from reserve funds was needed.
Transferring money from capital and enterprise accounts to the general fund began in response to the
impact of the 2003 LGA cuts. Eliminating this transfer is a goal of future budgets in order to protect the
capital account balances and our bond rating. Since 2006, the actual amount transferred from capital or
other accounts at the end of the year has been less than what was originally budgeted.
History of Transfer From Reserves to General Fund
Year Budgeted Amount Actual Amount
2004 $135,676 $135,676
2005 $204,315 $204,315
2006 $229,832 $160,000
2007 $161,337 $4,000
2008 $113,797 $65,000
2009 $21,732 $0
2010 $112,400 $77,400
2011 $71,917 $23,800
2012 $126,075 $126,075 (Estimate)
2013 $80,000 $80,000
2014 $40,000 $40,000
2015 $0 $0
2016 $0 $0
Debt Levy
In 2013, G.O. Equipment Certificate and Improvement Bond were issued to finance a new fire truck and
complete street improvements for the city. Both bonds will contribute to the debt portion of the overall
tax levy. In 2015, the City transferred $100,000 from reserves to decrease debt service levy to lessen the
impact on the overall general tax levy for the purchase of the new fire truck. The total debt service levy
for 2016 is $127,264 of which the portion for the new fire truck is $100,115, and the debt service levy for
the 2013 street project will be $27, 150. Without the fire truck debt service levy the overall tax levy would
have been -0.97% for 2016.
Summary
The overall general fund budget, including expenses, revenues, and transfers, totals $1,923,292. This is an
increase of $46,127 or 2.46% over the 2015 operating budget. The total tax levy is $1,173,447, which is
8.27% higher than the levy approved for the 2015 budget. This results in a city tax rate of 25.840%, and an
estimated $45 property tax increase on a median valued home.
When measured against other Ramsey County municipalities, Falcon Heights’ tax rate is very impressive:
City Proposed 2016 City Tax Rate
Falcon Heights 25.840%
Arden Hills 26.382%
Lauderdale 28.989%
Little Canada 30.869%
Maplewood 46.985%
Mounds View 40.097%
New Brighton 43.008%
North St. Paul 38.669%
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Roseville 39.211%
St. Paul 42.477%
Shoreview 34.945%
Vadnais Heights 26.796%
White Bear Lake 19.684%
The frugal tax rates are due to an aggressive budget philosophy that encourages sharing or contracting for
services from neighboring government agencies. Some examples of these practices include:
• Obtaining police services from the City of St. Anthony
• Using the City of Roseville for city engineering services
• Providing fire department services to the City of Lauderdale (allowing us to offset our
expenses)
• Sharing a building inspector and street sweeper with the City of Little Canada
• Participating with seventeen area communities on technology related issues, such as
phone and information technology services
In closing, I wish to acknowledge the contributions of many staff members, especially Finance Director
Roland Olson and Finance Intern Sara Aschenbeck for their tireless efforts in putting these documents
together.
Sincerely,
Sack Thongvanh
City Administrator
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CITY OF FALCON HEIGHTS
COUNCIL RESOLUTION
December 9, 2015
No. 15-46
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
RESOLUTION ADOPTING THE 2016 BUDGET
BE IT RESOLVED by the City Council of the City of Falcon Heights that the General
Fund Operating Budget for the year 2016 in the amount of $1,923,292 and other Fund
Budgets as listed are adopted.
Park Program Fund (201) $55,442
Community Garden (203) $1,000
Water Fund (204) $11,810
Emerald Ash Borer $680
Recycling Fund (206) $88,442
Community Development Fund (208) $15,780
Street Light Utility (209) $36,620
GO Improvement Cert. Series 2013A (311) $71,025
GO Equipment Cert. Series 2013B (312) $94.268
General Capital Improvements (401) $13,180
Public Safety Capital (402) $34,180
Parks Recreation/Public Facilities Capital (403) $54,180
TIF District #1-3 (414) $248,680
Infrastructure Capital (419) $46,180
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Moved by: Approved by: ________________________ Peter Lindstrom
Mayor
LINDSTROM ____ In Favor Attested by: ________________________
BROWN THUNDER Sack Thongvanh HARRIS ____ Against City Administrator
LONG
MERCER-TAYLOR
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REQUEST FOR COUNCIL ACTION
The City That Soars!
Item General Disbursements and Payroll
Description General Disbursements through: 12/02/15 $129,987.81
Payroll through: 11/320/15 $16,956.25
Budget Impact The general disbursements and payroll are consistent with the budget.
Attachment(s) •General Disbursements and Payroll
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve general
disbursements and payroll.
Meeting Date December 9, 2015
Agenda Item Consent F1
Attachment General Disbursements and Payroll
Submitted By Roland Olson, Finance Director
Families, Fields and Fair __________________________ Page 47 of 169
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REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Approval of City Licenses
Description
The following individuals have applied for a Municipal Business License for 2016.
Staff has received the necessary documents for licensure.
1. Har Mar Lock and Service
2. Falcon Heights Gas and Convenience, Inc.
3. Spire Credit Union
4. Cox Insurance Associates Inc
5. Curves
6. H1 HH MN Inc dba Honest-1 Auto Care Hamline Hoyt
7. Peterson Dental
8. TIES
9. Merwin Liquors
The following individuals have applied for a Restaurant License for 2016. Staff has
received the necessary documents for licensure.
1. Stout’s Pub
2. Pizza Hut
3. Quick Service Restaurant STP JJ Team LLC dba Jimmy John's
4. DivoJac dba Dino’s Gyros
5. XY Corporation dba New Fresh Wok
6. Chateau Formage
The following individuals have applied for an On Sale Liquor License for 2016.
Staff has received the necessary documents for licensure.
1. Stout’s Pub
2. DivoJac dba Dino’s Gyros
3. XY Corporation dba New Fresh Wok
4. Chateau Formage
The following individuals have applied for an Off Sale Liquor License for 2016.
Staff has received the necessary documents for licensure.
1. Merwin Liquors
Meeting Date December 9, 2015
Agenda Item Consent F2
Attachment N/A
Submitted By Tim Sandvik, Deputy Clerk
Families, Fields and Fair __________________________ Page 61 of 169
The following individuals have applied for a Refuse/Recycler’s License for 2016.
Staff has received the necessary documents for licensure.
1. Advanced Disposal Services
2. Gene’s Disposal Services Inc
3. Waste Management
The following individuals have applied for a Tobacco License for 2016. Staff has
received the necessary documents for licensure.
1. Falcon Heights Gas and Convenience Inc.
2. Merwin Liquors
The following individuals have applied for a Tree Trimming/Treating/Removal
Contractor’s License for 2016. Staff has received the necessary documents for
licensure.
1. SavATree
2. Vineland Tree Care
The following individuals have applied for a Therapeutic Massage License for
2016. Staff has received the necessary documents for licensure.
1. Ferencz Mihaly Vincze-Turcean – Hair Designs Unlimited
The following individuals have applied for a Home Occupation License for 2016.
Staff has received the necessary documents for licensure.
1. Pamela M. Harris PLLC
2. Cyberwares, LLC
3. David L Wasson Graphic Design
Budget Impact N/A
Attachment(s) N/A
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve the 2016 City
License Applications.
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REQUEST FOR COUNCIL ACTION
The City That Soars!
Item 2016 Proposed City Fee Schedule
Description
Each year the City Council is required to approve a fee schedule that identifies the
various fees charged by the City. Staff reviews these fees each year to ensure that
the costs charged cover the City’s expenses and so they are competitive with other
cities of comparable size.
Budget Impact These fees will be incorporated in the 2016 budget.
Attachment(s) • 2016 Proposed Fee Schedule
• Resolution 15-47 Adopting the 2016 City Fee Schedule
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve the attached
resolution and fee schedule.
Meeting Date December 9, 2015
Agenda Item Consent F3
Attachment Fee Schedule and Resolution
Submitted By Sack Thongvanh, City Administrator
Families, Fields and Fair __________________________ Page 63 of 169
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CITY OF FALCON HEIGHTS COUNCIL RESOLUTION
December 9, 2015
No. 15-47 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - -
A RESOLUTION APPROVING THE 2016 CITY FEE SCHEDULE
WHEREAS, City Staff reviews the fee schedule to make sure that the fee reflects staff cost and that the fee is competitive;
WHEREAS, the recommended changes are reflected on the attached 2016 Proposed City Fee Schedule labeled as “Exhibit A”.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota
approves the 2016 Fee Schedule as attached as “Exhibit A”.
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Moved by: Approved by: ________________________ Peter Lindstrom
Mayor
LINDSTROM ____ In Favor Attested by: ________________________ BROWN THUNDER Sack Thongvanh HARRIS ____ Against City Administrator
LONG MERCER-TAYLOR
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CITY OF FALCON HEIGHTS Fee Schedule – Proposed 2016
A. LICENSES 1. Business Licenses
Item Fee Bus Benches (Courtesy) $ 25.00 per bench Filling Stations
Less than 15 hours $ 100.00 15-20 hours $ 400.00 20 hours or more $ 500.00 General Business $ 50.00 Pool Halls $ 800.00
Precious Metal Dealer Investigation fee/general $1500.00 Investigation fee/MN only $ 500.00 License fee $2000.00 Restaurants
Lunchroom $ 50.00 Less than 15 hours $ 100.00 15-20 hours $ 400.00 20 hours or more $ 500.00 Therapeutic Massage License
Investigation fee $ 350.00 License fee $ 100.00
2. Liquor Licenses Item Fee Bottle Club $ 300.00 Liquor, Off-Sale $ 310.00 Liquor, On-Sale $4000.00
Liquor, Special Event $ 25.00 Liquor, Sunday $ 200.00 Malt Beverage, Off-Sale $ 150.00 Malt Beverage, On-Sale $ 500.00 Malt Beverage, On-Sale
(with wine license) $ 1.00 Wine License $2000.00 Temporary Liquor License $ 50.00 Background Checks (per license) $500.00
3. Other Licenses Item Fee Amusement machines (per machine) $ 30.00
Cigarette sales $ 250.00 Contractor licenses $ 35.00 Itinerant salespersons & solicitors (for profit only) $ 25.00 (Charitable) Free
Pool tables (per table) $ 30.00 Refuse Haulers $100.00 Rental License $ 50.00 Re-inspection (due to initial failure) $ 50.00
Adopted January 15th, 2015
Page 67 of 169
B. PERMITS
1. Building permit fees:
Total Valuation 2015
$1.00 - $500.00 $25.00 $501.00 - $2,000.00 $25.00 for first $500, $3.25/each additional $100, to and
including $2000 $2,001.00 - $25,000 $73.75 for first $2000, $14.75/each additional $1000, to and including $25,000
$25,001.00 - $50,000 $413.00 for first $25,000, $10.75/each additional $1000, to and including $50,000
$50,001.00 - $100,000.00 $681.75 for first $50,000, $7.50/each additional $1000, to and including $100,000.00
$100,001.00 - $500,000.00 $1,056.75 for first $100,000, $6.00/each additional $1000, to and including $500,000
$500,001.00 - $1,000,000.00 $3,456.75 for first $500,000, $5.00/each additional $1,000, to and including $1,000,000 $1,000,001 and up $5,956.75 for first $1,000,000, $4.00/each additional $1,000
Other Inspections and Fees: 1. Inspections outside of normal business hours $47.00 per hour1 (minimum charge – two hours)
2. Re-inspection fees assessed under provisions of Section 305.8 $47.00 per hour1 3. Inspections for which no fee is specifically indicated $47.00 per hour1 (minimum charge – one-half hour) 4. Additional plan review required by changes, additions or revisions to plans $47.00 per hour1 (minimum charge – one-half hour)
5. For use of outside consultants for plan checking and inspections, or both actual costs2
1Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost shall include supervision, overhead, equipment, hourly wages, and fringe benefits of the employees involved.
2Actual costs include administrative and overhead costs. *Building Permits are subject to the State Surcharge
2. Relocation of structure or building: $150.00
3. Demolition or removal of structure: $1.25/1,000 cubic ft; minimum $50.00
Adopted January 15th, 2015
Page 68 of 169
4. Mechanical permit fees a. Residential Work Base Fee $30.00 Gas Piping
$10.00 $500 valuation or less (repair or installation) $ 6.00 Each additional $500 cost of repair or installation
Gas or oil fired furnaces or boilers $25.00 First 100,000 BTU input or less. $ 5.00 Each additional 100,000 input or fraction thereof. Warm air or hot water heating system
$30.00 First 100,000 BTU input for construction, installation, alteration, or replacement of each warm air furnace duct work or hot water system per unit. $ 6.00 Each additional 100,000 BTU input or fraction thereof.
$20.00 First 100,000 BTU input per unit on unit heaters $ 5.00 Each additional 100,000 BTU input or fraction thereof. Air conditioning $30.00 First 5 tons (60,000 BTU) of air conditioning per unit or of
cooling for duct work for air conditioning. $ 6.00 Each ton (12,000 BTU) or fraction thereof over first 5 tons for duct work or air conditioning.
Other Items $35.00 Wood burning furnace per unit $35.00 Swimming pool heater per unit $25.00 Air exchanger with duct work per unit
$25.00 Gas or oil space heater per unit $25.00 Gas direct vent heater per unit $25.00 Gas fireplace log or heater per unit $25.00 Gas hot water heater for domestic hot water
b. Commercial Work Gas piping, refrigeration, chilled water, pneumatic control, ventilation, exhaust, hot water, steam, and warm air heating systems. This fee shall be $50 plus 1-1/4 percent (1.25%) of the total valuation of the work. Value of the
work must include the cost of installation, alteration, addition, and repairs, including fans, hoods, HVAC units and heat transfer units, and all labor and materials necessary for
installation. In addition, it shall include all material and equipment supplied by other sources when those materials are normally supplied by the contractor.
Adopted January 15th, 2015
Page 69 of 169
5. Plumbing Permit Fees. $30.00 base fee plus $7.00 per fixture installed 6. Sewer Connection or Repair $50.00 7. Water Connection
Meter Size Fee 3/4" $ 62.00 1" $ 115.00
1-1/2" $ 265.00 2" $ 470.00 3" $1,080.00 8. Street Opening Fee $25.00 (plus cost of permit) 9. Fence Permit Fee $40.00
10. Residential Driveway Permit Fee $40.00 11. Commercial Driveway Permit Fee Subject to Building Permit Fees 12. Temporary Sign Permit $30.00 13. Permanent Sign Permit $50.00 14. Dumpster Permit $ 20.00 (30 days) $10.00 (14 days)
(Dumpster permits can be renewed once)
C. PLANNING FEES* Item Fee Comprehensive Plan Amendment $550.00$ 500
Conditional Use Permit $500.00 Design Review (when required by code) $ 50.00
Lot Split (one lot into two) $ 250.00$ 500 Planned Unit Development $ 500.00 Rezoning/Zoning Amendment $ 500.00 Subdivision (>1 new lot) $ 300.00$ 500 + $ 100.00/lot created Variance $ 350.00$ 500
*Fee plus actual cost billed by contractors or city consultant fees.
Comment [ST1]: Change this to $550 or $500
Comment [ST2]: Proposed increase to $500
Comment [ST3]: Proposed increase to $500
Comment [ST4]: Proposed to increase to $500 to be in line with Conditional Use Permit fee. Variance are just or more complex than CUP.
Adopted January 15th, 2015
Page 70 of 169
D. FACILITY RENTAL FEES
Private use of public facilities is permitted on a space available basis. Reservations and damage deposits are
required for private use of the following community facilities. Discounted rates are available for weekly bookings: Park and Facility Rental Fees
* For park building rentals there is a $200 damage deposit required that needs to be made in a separate form than the payment. Deposit will be refunded upon return of the key and inspection of the park building.
* Key pick up is two days prior to scheduled event and can be picked up at City Hall Monday –Friday 8:00am-4:30pm, (Summer hours: 7:30am- 5:00pm Monday-Thursday, Friday 7:30am-noon Memorial Day- Labor Day) * Keys can be dropped off at the key box located on the city hall building (near the front doors ) or during City Hall office hours. * Park building rental permits will be issued when payment is received. Holding reservations without payment is not accepted.
*If you plan on bringing any equipment (i.e. inflatable devices, dunk tanks etc.) into the park you must disclose this to a city employee during the reservation process. The city may require documentation such as: a hold harmless agreement or certificate of insurance naming the city has an additional insured.
Venue Amenities included
in rental
Half Day
9am-3pm 4pm-10pm
Full Day
9am-10pm
Community Park Building
and Upper Picnic Area
2050 Roselawn Ave.
(corner of Roselawn and Cleveland)
Park Building Full Kitchen (stove, oven,
frig/freezer, sink, microwave)
Tables and Chairs Inside Bathrooms
2 BBQ Grills 9 Outdoor picnic tables
Parking lot (50) and off street parking
$100.00 + Tax-
$200.00 + Tax$150 plus Tax
East Picnic Area (near playground)
2 Picnic Tables
Trash receptacles Portable bathroom
Parking lot (50) and off street parking
$20.00 + Tax
$35.00 + Tax
Lower Picnic Area (Southwest corner of park)
2 Picnic Tables 1 BBQ Grill
Trash receptacles Portable bathroom Parking lot (50) and off
street parking
$20.00 + Tax
$35.00 + Tax
Curtiss Field Building and Picnic Shelter 1551 W. Iowa Ave.
Park building
Inside Bathrooms
Playground Basketball hoop and half
court 2 picnic tables
Portable bathroom Parking lot (10) and off
street parking
$50.00 + Tax-
$100.00 + Tax-
Rentals: Play Kit
Play kit variety of balls, frisbees, and other play
equipment
$15.00 + Tax
Set up/Tear Down $25.00
Comment [ST5]: Recommendation would be that we ONLY offer full-day rentals at $150. Paying for staff to come in and clean up to 4 times in a weekend provides more expenditures than revenue for Parks and Maintenance Fund. Suggestion: Full Day only at $150. This fee is inline with surround communities.
Formatted: Position: Horizontal: Left, Relativeto: Column, Vertical: In line, Relative to:Margin, Horizontal: 0", Wrap Around
Comment [ST6]: Remove for now (No Rental Opportunity)
Adopted January 15th, 2015
Page 71 of 169
City Hall Rental Fees
City Hall Capacity Rates (3 hours)
Hours must fall
within half/full hours
Half Day 9am-3pm
4pm-10pm
Full Day 8am-10pm
Council Chambers Full Room (includes kitchen facility)
150 75- Seated
$115.00
$175.00
$250.00
Council Chambers
Front Half
75
30 Seated
$50.00
$100.00
$150.00
Council Chambers Back Half
75
30 Seated
$50.00
$100.00
$150.00
Kitchen Facility
10
6 Seated
$25.00
$50.00
$50.00
Conference Room 8 maximum
$30.00
$60.00
$100.00
Set Up Fee Excludes governmental entities
$25.00
* For city hall rentals there is a $200 damage deposit required that needs to be made in a separate form than the payment. Deposit will be refunded upon return of the key and inspection of the park building.
* Key pick up is two days prior to scheduled event and can be picked up at City Hall Monday –Friday 8:00am-4:30pm, (Summer hours: 7:30am- 5:00pm Monday-Thursday, Friday 7:30am-noon Memorial Day-
Labor Day) * Keys can be dropped off at the key box located on the city hall building (near the front doors) or during City Hall office hours.
* Building rental permits will be issued when payment is received. Holding reservations without payment is not accepted. * CITY HALL CANNOT BE RENTED FOR PRIVATE SOCIAL GATHERINGS.City Hall cannot be rented for private social gatherings
Adopted January 15th, 2015
Page 72 of 169
Field/Court/Rink Rental Fees
You may rent Community Park’s soccer field, tennis courts or basketball courts and Curtiss Field’s ice rink (seasonal). Discounted rates are available for weekly bookings.
Renters Fee (3 hr. block time) Fee Seasonal 3
hr block time
April-October Consecutive times in one week
Additional
Hours
Resident $20+ tax - $10 + tax
Non Resident $30+ tax - $10 + tax
Youth Organizations ages 2-18 (must be open to serving residents of
Falcon Heights)
$20+ tax 2 day: $35 3 day: $50 4 days: $65 5 days or more: $80
2-3 times per week
$50.00
4-5 times per week $100.00 6-7 times per week $150.00
$10 + tax
Adult Organizations $30+ tax 2 day: $40 3 day: $55 4 days: $70 5 days or more: $85 2-3 times per week
$75.00
4-5 times per week
$125.00 6-7 times per week $175.00
$10 + tax
Striping a soccer field At City Cost $25 case by case basis
Fees apply only for games and practices. Tournaments or special events/services are subject to additional fees. Field rental permits will be issued when payment is received. Disclaimer:
All short term rentals (1-5 times) entitle the customer to use of the field as is: anything additional
will be the customer’s responsibility (i.e. striping the field or providing bases.) Special request of
services will be dealt with on a case by case basis and may include extra fees. All requests should be discussed with the Parks and Recreation Department at 651-792-7617.
Adopted January 15th, 2015
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E. FACILITY USE BY PUBLIC SERVICE ORGANIZATIONS 1. Public facilities are available for use on a reservation basis. 2. The following shall be allowed use of public facilities but set up/tear down fees apply: a. Specifically listed local organizations:
• League of Women Voters
• Senior Citizen Groups (Falconeers, Roseville Area Seniors)
• Ramsey County League of Local Governments
• League of Minnesota Cities/Association of Metropolitan Municipalities
• Watershed management organizations
• Scouts, Brownie Troops, 4-H, Campfire
• Neighborhood Groups (e.g. Grove Association, Maple Knoll Courtyard Homeowner’s Association)
• 55 Alive Mature Driving Class
• Cable Commission
• Developers when presenting to neighbors
• Legislators for informational (non-campaign) meetings, except after the filing date and before the November election of a legislative election year unless requested by
a majority of the city council
• Northwest Youth and Family Service
• Lauderdale and Falcon Heights Lions Club
• Roseville Rotary Club
• Party Precinct caucuses, legislated district conventions and county conventions under the requirements of MN State Statute 202A.192
• AARP Tax Services
• Hobby groups or clubs that meet the following criteria: o Falcon Heights based (A minimum of 25% of on-going members or
participants are Falcon Heights residents). o Non-profit
o Open membership o Founded on a hobby o Actively reaches out to include people of different ages, especially youth, to
encourage intergenerational exchanges of information o Encourages a community service and/or benefit component
• Falcon Heights neighborhood or community groups whose activities are open to all and for the sole purpose of developing, fostering and strengthening neighborhood
and community well-being. b. Any organization that meets the above guidelines yet uses a facility more than twice a
year shall be charged $100 per year.
c. The organization or group cannot be a private, business, political, or religious organization.
d. Any organization denied free use under this policy as defined in this section may appeal to the city council.
Adopted January 15th, 2015
Page 74 of 169
F. MISCELLANEOUS FEES. Item Fee Agendas (Council or Planning) 1 $15.00/year City Council Minutes1 $35.00/year Planning Commission Minutes1 $20.00/year
Single copies $ .25/page for first 100 pages Assessment search $20.00 Maps $ 6.50
Open burning permit $25.00 (no charge for recreational fires) Returned Check Fee $25.00 1 The charges apply only when hard copies are mailed. These documents can be viewed free of charge on the website or at City Hall.
G. FALSE ALARM FEES 1. Fire False Alarms $175.00 for second false alarm and $225.00 for the third and all subsequent false alarms at an address within one calendar year.
2. Security False Alarms $60.00 for second call and $75.00 for the third and each subsequent false alarm at an address within one calendar year. 3. Penalties and Assessment Penalties for late payment and assessment of unpaid fees are the same as
stipulated for unpaid utility fees in the city code.
H. VEHICLE EMERGENCY RESPONSE The fee for emergency personnel response to accidents is $350.00/vehicle.
I. PARKING FEES Item Fee Application fee to designate “residential area” permit parking $ 200.00
Annual residential area parking permits First two vehicles $ 15.00/vehicle Third and subsequent vehicles $ 25.00/vehicle Lost permit replacement $5.00$ 7.00 Temporary parking permit (up to 3 weeks) $ 3.00/vehicle
Temporary parking permit for 5 or more vehicles for a one-time/ one-day event $ 25.00/event Mobile Storage Structure (up to 72 hours) $ 10.00 J. RENTAL HOUSING RE-INSPECTIONS $50.00 for third and subsequent inspections K. SANITARY SEWER
The sanitary sewer fee for residential units is $28.75 $31.75 per quarter plus $.0188311 $.0207896 per cubic foot of water usage during the months of November – January. For apartment units, the rate will be $28.75 $31.75/unit/quarter plus $.0188311 $.0207896 per cubic foot of water used
in November. For residential units, this will serve as the maximum fee for other quarters throughout the year, but the actual amount billed may be lower depending on water usage. For commercial units, the fee is $.0188311 $.0207896 per cubic foot of water usage during each month.
Comment [ST7]: New language to clarify
Adopted January 15th, 2015
Page 75 of 169
L. STORM DRAINAGE The fee for storm drainage is $22.00 per quarter for residential units and $205.32 per acre for commercial and apartment units. M. HYDRANT WATER
The fee for hydrant water is 6% surcharge of the water bill.
N. RECYCLING The recycling charge is $9.75 per quarter for residential units.
O. STREET LIGHTING The street lighting fee is $6.00 per quarter for residential units and $0.02 per lineal foot frontage for commercial properties monthly.
P. FEES FOR UNSPECIFIED REQUESTS A private party or public institution (hereinafter applicant) making a request to the City for approval of a project or for public assistance must cover the City's consultants' costs associated with reviewing the request. Prior to having the request considered by the City, the applicant must deposit an escrow fee in an amount that is estimated to cover the City's consultants' costs as determined by the City Administrator. If the City's
consultants' costs exceed the initial escrow deposited by the applicant, an additional escrow fee will be required to cover the additional costs. The City shall use the applicant's fees to cover the City's actual consultants' costs in reviewing the request regardless of the City's action on the applicant's request. If the applicant's escrow fees exceed the City's actual consultants' costs for reviewing the request, the remaining escrow
fees shall be refunded to the applicant.
Adopted January 15th, 2015
Page 76 of 169
“Exhibit A” CITY OF FALCON HEIGHTS Fee Schedule – Proposed 2016
A. LICENSES
1. Business Licenses
Item Fee
Bus Benches (Courtesy) $ 25.00 per bench
Filling Stations
Less than 15 hours $ 100.00 15-20 hours $ 400.00 20 hours or more $ 500.00 General Business $ 50.00 Pool Halls $ 800.00 Precious Metal Dealer Investigation fee/general $1,500.00 Investigation fee/MN only $ 500.00 License fee $2,000.00 Restaurants Lunchroom $ 50.00 Less than 15 hours $ 100.00 15-20 hours $ 400.00
20 hours or more $ 500.00
Therapeutic Massage License
Investigation fee $ 350.00
License fee $ 100.00
2. Liquor Licenses
Item Fee
Bottle Club $ 300.00
Liquor, Off-Sale $ 310.00
Liquor, On-Sale $4,000.00
Liquor, Special Event $ 25.00
Liquor, Sunday $ 200.00
Malt Beverage, Off-Sale $ 150.00 Malt Beverage, On-Sale $ 500.00 Malt Beverage, On-Sale (with wine license) $ 1.00 Wine License $2,000.00 Temporary Liquor License $ 50.00 Background Checks (per license) $500.00 3. Other Licenses Item Fee Amusement machines (per machine) $ 30.00 Cigarette sales $ 250.00 Contractor licenses $ 35.00
Itinerant salespersons & solicitors
(for profit only) $ 25.00
(Charitable) Free
Pool tables (per table) $ 30.00
Refuse Haulers $100.00
Adopted December 9th, 2015 Page 77 of 169
Rental License $ 50.00
Re-inspection (due to initial failure) $ 50.00
B. PERMITS
1. Building permit fees:
Total Valuation 2015
$1.00 - $500.00 $25.00
$501.00 - $2,000.00 $25.00 for first $500, $3.25/each additional $100, to and
including $2000
$2,001.00 - $25,000 $73.75 for first $2000, $14.75/each additional $1000, to and including $25,000
$25,001.00 - $50,000 $413.00 for first $25,000, $10.75/each additional $1000, to and
including $50,000
$50,001.00 - $100,000.00 $681.75 for first $50,000, $7.50/each additional $1000, to and including $100,000.00
$100,001.00 - $500,000.00 $1,056.75 for first $100,000, $6.00/each additional $1000, to and
including $500,000
$500,001.00 - $1,000,000.00 $3,456.75 for first $500,000, $5.00/each additional $1,000, to and
including $1,000,000
$1,000,001 and up $5,956.75 for first $1,000,000, $4.00/each additional $1,000
Other Inspections and Fees:
1. Inspections outside of normal business hours $47.00 per hour1 (minimum charge – two
hours)
2. Re-inspection fees assessed under provisions of Section 305.8 $47.00 per hour1
3. Inspections for which no fee is specifically indicated $47.00 per hour1 (minimum charge
– one-half hour)
4. Additional plan review required by changes, additions or revisions to plans $47.00 per
hour1 (minimum charge – one-half hour)
5. For use of outside consultants for plan checking and inspections, or both actual costs2
1Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost shall
include supervision, overhead, equipment, hourly wages, and fringe benefits of the
employees involved.
2Actual costs include administrative and overhead costs. *Building Permits are subject to the State Surcharge
2. Relocation of structure or building: $150.00
3. Demolition or removal of structure: $1.25/1,000 cubic ft; minimum $50.00
Adopted December 9th, 2015 Page 78 of 169
4. Mechanical permit fees
a. Residential Work
Base Fee $30.00
Gas Piping
$10.00 $500 valuation or less (repair or installation)
$ 6.00 Each additional $500 cost of repair or installation
Gas or oil fired furnaces or boilers
$25.00 First 100,000 BTU input or less.
$ 5.00 Each additional 100,000 input or fraction thereof.
Warm air or hot water heating system $30.00 First 100,000 BTU input for construction, installation, alteration, or replacement of each warm air furnace duct work or hot water system per unit. $ 6.00 Each additional 100,000 BTU input or fraction thereof. $20.00 First 100,000 BTU input per unit on unit heaters $ 5.00 Each additional 100,000 BTU input or fraction thereof. Air conditioning $30.00 First 5 tons (60,000 BTU) of air conditioning per unit or of
cooling for duct work for air conditioning.
$ 6.00 Each ton (12,000 BTU) or fraction thereof over first 5 tons for
duct work or air conditioning.
Other Items
$35.00 Wood burning furnace per unit
$35.00 Swimming pool heater per unit
$25.00 Air exchanger with duct work per unit
$25.00 Gas or oil space heater per unit
$25.00 Gas direct vent heater per unit
$25.00 Gas fireplace log or heater per unit
$25.00 Gas hot water heater for domestic hot water
b. Commercial Work Gas piping, refrigeration, chilled water, pneumatic control, ventilation, exhaust, hot water, steam, and warm air heating systems. This fee shall be $50 plus 1-1/4 percent (1.25%) of the total valuation of the work. Value of the
work must include the cost of installation, alteration, addition, and repairs, including fans,
hoods, HVAC units and heat transfer units, and all labor and materials necessary for installation. In addition, it shall include all material and equipment supplied by other sources when those materials are normally supplied by the contractor.
Adopted December 9th, 2015 Page 79 of 169
5. Plumbing Permit Fees.
$30.00 base fee plus $7.00 per fixture installed
6. Sewer Connection or Repair $50.00
7. Water Connection
Meter Size Fee
3/4" $ 62.00
1" $ 115.00
1-1/2" $ 265.00
2" $ 470.00
3" $1,080.00 8. Street Opening Fee $25.00 (plus cost of permit) 9. Fence Permit Fee $40.00 10. Residential Driveway Permit Fee $40.00 11. Commercial Driveway Permit Fee Subject to Building Permit Fees 12. Temporary Sign Permit $30.00 13. Permanent Sign Permit $50.00 14. Dumpster Permit $ 20.00 (30 days) $10.00 (14 days) (Dumpster permits can be renewed once)
C. PLANNING FEES* Item Fee
Comprehensive Plan Amendment $ 500
Conditional Use Permit $500.00
Design Review
(when required by code) $ 50.00
Lot Split (one lot into two) $ 500
Planned Unit Development $ 500.00
Rezoning/Zoning Amendment $ 500.00
Subdivision (>1 new lot) $ 500+ $ 100.00/lot created
Variance $ 500
*Fee plus actual cost billed by contractors or city consultant fees.
Adopted December 9th, 2015 Page 80 of 169
D. FACILITY RENTAL FEES
Private use of public facilities is permitted on a space available basis. Reservations and damage deposits are required for private use of the following community facilities. Discounted rates are available for weekly
bookings: Park and Facility Rental Fees
* For park building rentals there is a $200 damage deposit required that needs to be made in a separate form than the payment. Deposit
will be refunded upon return of the key and inspection of the park building.
* Key pick up is two days prior to scheduled event and can be picked up at City Hall Monday –Friday 8:00am-4:30pm, (Summer hours:
7:30am- 5:00pm Monday-Thursday, Friday 7:30am-noon Memorial Day- Labor Day) * Keys can be dropped off at the key box located on the city hall building (near the front doors ) or during City Hall office hours. * Park building rental permits will be issued when payment is received. Holding reservations without payment is not accepted. *If you plan on bringing any equipment (i.e. inflatable devices, dunk tanks etc.) into the park you must disclose this to a city employee during the reservation process. The city may require documentation such as: a hold harmless agreement or certificate of insurance
naming the city has an additional insured.
Venue Amenities included
in rental
Half Day
9am-3pm
4pm-10pm
Full Day
9am-10pm
Community Park Building and Upper Picnic Area 2050 Roselawn Ave.
(corner of Roselawn and
Cleveland)
Park Building
Full Kitchen (stove, oven,
frig/freezer, sink,
microwave) Tables and Chairs
Inside Bathrooms
2 BBQ Grills
9 Outdoor picnic tables
Parking lot (50) and off
street parking
-
$150 plus Tax
East Picnic Area
(near playground)
2 Picnic Tables
Trash receptacles
Portable bathroom
Parking lot (50) and off
street parking
$20.00 + Tax
$35.00 + Tax
Lower Picnic Area (Southwest corner of park)
2 Picnic Tables
1 BBQ Grill
Trash receptacles
Portable bathroom Parking lot (50) and off
street parking
$20.00 + Tax
$35.00 + Tax
Curtiss Field Building and Picnic Shelter
1551 W. Iowa Ave.
Park building
Inside Bathrooms Playground Basketball hoop and half
court
2 picnic tables
Portable bathroom
Parking lot (10) and off
street parking
Not Available
-
Not Available
-
Rentals:
Play Kit
Play kit variety of balls,
frisbees, and other play
equipment
$15.00 + Tax
Set up/Tear Down
$25.00
Adopted December 9th, 2015 Page 81 of 169
City Hall Rental Fees
City Hall Capacity Rates (3 hours)
Hours must fall
within half/full
hours
Half Day 9am-3pm
4pm-10pm
Full Day 8am-10pm
Council Chambers
Full Room
(includes kitchen facility)
150
75- Seated
$115.00
$175.00
$250.00
Council Chambers Front Half
75
30 Seated
$50.00 $100.00
$150.00
Council Chambers
Back Half
75
30 Seated
$50.00
$100.00
$150.00
Kitchen Facility
10
6 Seated
$25.00
$50.00
$50.00
Conference Room
8 maximum
$30.00
$60.00
$100.00
Set Up Fee
Excludes
governmental entities
$25.00
* For city hall rentals there is a $200 damage deposit required that needs to be made in a separate
form than the payment. Deposit will be refunded upon return of the key and inspection of the park
building.
* Key pick up is two days prior to scheduled event and can be picked up at City Hall Monday –Friday
8:00am-4:30pm, (Summer hours: 7:30am- 5:00pm Monday-Thursday, Friday 7:30am-noon Memorial Day-
Labor Day)
* Keys can be dropped off at the key box located on the city hall building (near the front doors) or
during City Hall office hours.
* Building rental permits will be issued when payment is received. Holding reservations without
payment is not accepted. * CITY HALL CANNOT BE RENTED FOR PRIVATE SOCIAL GATHERINGS.
Adopted December 9th, 2015 Page 82 of 169
Field/Court/Rink Rental Fees
You may rent Community Park’s soccer field, tennis courts or basketball courts
and Curtiss Field’s ice rink (seasonal). Discounted rates are available for weekly bookings.
Renters Fee (3 hr. block time) Fee Seasonal 3
hr block time
April-October
Consecutive times in
one week
Additional
Hours
Resident $20+ tax - $10 + tax
Non Resident $30+ tax - $10 + tax
Youth Organizations
ages 2-18 (must be open to serving residents of
Falcon Heights)
$20+ tax 2 day: $35
3 day: $50 4 days: $65 5 days or more: $80
$10 + tax
Adult Organizations $30+ tax
2 day: $40
3 day: $55 4 days: $70 5 days or more: $85
$10 + tax
Striping a soccer field At City Cost case by case basis
Fees apply only for games and practices. Tournaments or special events/services are subject
to additional fees.
Field rental permits will be issued when payment is received. Disclaimer: All short term rentals (1-5 times) entitle the customer to use of the field as is: anything additional
will be the customer’s responsibility (i.e. striping the field or providing bases.) Special request of
services will be dealt with on a case by case basis and may include extra fees. All requests should
be discussed with the Parks and Recreation Department at 651-792-7617.
Adopted December 9th, 2015 Page 83 of 169
E. FACILITY USE BY PUBLIC SERVICE ORGANIZATIONS
1. Public facilities are available for use on a reservation basis.
2. The following shall be allowed use of public facilities but set up/tear down fees apply:
a. Specifically listed local organizations:
• League of Women Voters
• Senior Citizen Groups (Falconeers, Roseville Area Seniors)
• Ramsey County League of Local Governments
• League of Minnesota Cities/Association of Metropolitan Municipalities
• Watershed management organizations
• Scouts, Brownie Troops, 4-H, Campfire
• Neighborhood Groups (e.g. Grove Association, Maple Knoll Courtyard Homeowner’s Association)
• 55 Alive Mature Driving Class
• Cable Commission
• Developers when presenting to neighbors
• Legislators for informational (non-campaign) meetings, except after the filing date and before the November election of a legislative election year unless requested by
a majority of the city council
• Northwest Youth and Family Service
• Lauderdale and Falcon Heights Lions Club
• Roseville Rotary Club
• Party Precinct caucuses, legislated district conventions and county conventions
under the requirements of MN State Statute 202A.192
• AARP Tax Services
• Hobby groups or clubs that meet the following criteria:
o Falcon Heights based (A minimum of 25% of on-going members or
participants are Falcon Heights residents).
o Non-profit
o Open membership
o Founded on a hobby
o Actively reaches out to include people of different ages, especially youth, to
encourage intergenerational exchanges of information
o Encourages a community service and/or benefit component
• Falcon Heights neighborhood or community groups whose activities are open to all and for the sole purpose of developing, fostering and strengthening neighborhood and community well-being. b. Any organization that meets the above guidelines yet uses a facility more than twice a year shall be charged $100 per year.
c. The organization or group cannot be a private, business, political, or religious organization.
d. Any organization denied free use under this policy as defined in this section may
appeal to the city council.
Adopted December 9th, 2015 Page 84 of 169
F. MISCELLANEOUS FEES. Item Fee
Agendas (Council or Planning) 1 $15.00/year
City Council Minutes1 $35.00/year
Planning Commission Minutes1 $20.00/year
Single copies $ .25/page for first 100 pages
Assessment search $20.00
Maps $ 6.50
Open burning permit $25.00
(no charge for recreational fires)
Returned Check Fee $25.00 1 The charges apply only when hard copies are mailed. These documents can be viewed free of charge on the website or at City Hall.
G. FALSE ALARM FEES 1. Fire False Alarms $175.00 for second false alarm and $225.00 for the third and all subsequent false alarms at an address within one calendar year. 2. Security False Alarms $60.00 for second call and $75.00 for the third and each subsequent false alarm at an address within one calendar year. 3. Penalties and Assessment Penalties for late payment and assessment of unpaid fees are the same as
stipulated for unpaid utility fees in the city code.
H. VEHICLE EMERGENCY RESPONSE The fee for emergency personnel response to accidents is $350.00/vehicle.
I. PARKING FEES
Item Fee
Application fee to designate “residential area” permit parking $ 200.00
Annual residential area parking permits
First two vehicles $ 15.00/vehicle
Third and subsequent vehicles $ 25.00/vehicle
Lost permit replacement $5.00
Temporary parking permit (up to 3 weeks) $ 3.00/vehicle Temporary parking permit for 5 or more vehicles for a one-time/ one-day event $ 25.00/event Mobile Storage Structure (up to 72 hours) $ 10.00
J. RENTAL HOUSING RE-INSPECTIONS $50.00 for third and subsequent
inspections
K. SANITARY SEWER The sanitary sewer fee for residential units is $31.75 per quarter plus $0.0207896 per cubic foot of water usage during the months of November – January. For apartment units, the rate will be $31.75/unit/quarter plus $0.0207896 per cubic foot of water used in November. For residential units, this will serve as the maximum fee for other quarters throughout the year, but the actual amount billed may be lower depending on water usage. For commercial units, the fee is $0.0207896 per cubic foot of water usage during each month.
Adopted December 9th, 2015 Page 85 of 169
L. STORM DRAINAGE The fee for storm drainage is $22.00 per quarter for residential units and $205.32 per acre for
commercial and apartment units.
M. HYDRANT WATER
The fee for hydrant water is 6% surcharge of the water bill.
N. RECYCLING
The recycling charge is $9.75 per quarter for residential units.
O. STREET LIGHTING
The street lighting fee is $6.00 per quarter for residential units and $0.02 per lineal foot frontage
for commercial properties monthly.
P. FEES FOR UNSPECIFIED REQUESTS
A private party or public institution (hereinafter applicant) making a request to the City
for approval of a project or for public assistance must cover the City's consultants' costs associated with reviewing the request. Prior to having the request considered by the City, the applicant must deposit an escrow fee in an amount that is estimated to cover the City's consultants' costs as determined by the City Administrator. If the City's consultants' costs exceed the initial escrow deposited by the applicant, an additional escrow fee will be required to cover the additional costs. The City shall use the applicant's fees to cover the City's actual consultants' costs in reviewing the request regardless of the City's action on the applicant's request. If the applicant's escrow fees exceed the City's actual consultants' costs for reviewing the request, the remaining escrow fees shall be refunded to the applicant.
Adopted December 9th, 2015 Page 86 of 169
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Designation of 2016 Prosecuting Attorney
Description
Each year the City of Falcon Heights designates a prosecuting attorney. This person
works closely with the St. Anthony Police Department and City Staff in prosecuting
all misdemeanor and felony level offenses as well as Ordinance Violations. For
several years our prosecuting attorney has been Katrina Joseph. She also serves as
the attorney for the City of Lauderdale.
Budget Impact The monthly retainer will not change and has been included in the 2015 operating
budget.
Attachment(s) N/A
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve Katrina Joseph and
the law firm of Hughes and Costello as the City’s prosecuting attorneys for 2016.
Meeting Date December 9, 2015
Agenda Item Consent F4
Attachment N/A
Submitted By Sack Thongvanh, City Administrator
Families, Fields and Fair __________________________ Page 87 of 169
BLANK PAGE
Page 88 of 169
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Appointment of City Attorney
Description
Falcon Heights has used the law firm of Campbell Knutson, P.A. for Civil Attorney
services for many years. Roger Knutson is the main contact, but the City uses
various attorneys in the firm for our daily needs.
Budget Impact Funds have been allocated in the 2016 Budget.
Attachment(s) N/A
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve the law firm of
Campbell Knutson, P.A. for civil legal services for 2016.
Meeting Date December 9, 2015
Agenda Item Consent F5
Attachment N/A
Submitted By Sack Thongvanh, City Administrator
Families, Fields and Fair __________________________ Page 89 of 169
BLANK PAGE
Page 90 of 169
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Appointment of City Engineer
Description
For several years the City has contracted with the City of Roseville for engineering
services. Staff is seeking to continue this relationship and appoint Roseville’s City
Engineer, Jesse Freihammer, as the City Engineer for 2016.
Budget Impact Funds have been allocated in the 2016 Budget.
Attachment(s) N/A
Action(s)
Requested
Staff recommends the approval of Jesse Freihammer and the City of Roseville
Engineering Department as City of Falcon Heights’ Engineer for 2016.
Meeting Date December 9, 2015
Agenda Item Consent F6
Attachment N/A
Submitted By Sack Thongvanh, City Administrator
Families, Fields and Fair __________________________ Page 91 of 169
BLANK PAGE
Page 92 of 169
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Appointment of City Auditor
Description
Each year the City is required to have an independent firm audit our financial
records. For the past several years, we have used Kern-DeWenter-Viere as our
auditors, and we have been very satisfied with their services.
Budget Impact Funds have been allocated in the 2016 Budget.
Attachment(s)
Action(s)
Requested
Staff recommends the approval of KDV, Kern-DeWenter-Viere, as the City Auditor
for 2016.
Meeting Date December 9, 2015
Agenda Item Consent F7
Attachment N/A
Submitted By Sack Thongvanh, City Administrator
Families, Fields and Fair __________________________ Page 93 of 169
BLANK PAGE
Page 94 of 169
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Designation of Official Newspaper
Description
State statute requires that a city designate a legal newspaper of general circulation
in the city. This newspaper is used when the city is required to publish legal
notification regarding public hearings, elections and city financial matters. There
are two local papers that service Falcon Heights: the Park Bugle and the Roseville
Review.
Staff recommends that the City designate the Roseville Review as its legal
newspaper in 2016 for the following reasons.
• The Roseville Review circulates to most households in Falcon Heights.
• The Roseville Review is a weekly publication. A monthly publication such as
The Park Bugle would not suit the City’s needs, as the City Council meets twice
a month and legal notices must be published on a more timely schedule.
Budget Impact Funds have been allocated in the 2016 Budget for any costs associated with public
notices.
Attachment(s) N/A
Action(s)
Requested
Designate the Roseville Review as the City’s legal newspaper for 2016.
Meeting Date December 9, 2015
Agenda Item Consent F8
Attachment N/A
Submitted By Sack Thongvanh, City Administrator
Families, Fields and Fair __________________________ Page 95 of 169
BLANK PAGE
Page 96 of 169
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item 2016 Cost of Living Adjustments (COLA)
Description
As part of the 2016 Budget process, employee salaries are adjusted based on various
factors, one of which is a cost-of-living adjustment (COLA). Incorporated into the
approved 2016 budget is a 3% increase for all employees, including the City
Administrator.
Budget Impact The 3% COLA is incorporated into the approved 2016 Budget.
Attachment(s)
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve a 3% cost of living
adjustment for all city employees for 2016 as reflected in the approved 2016 Budget.
Meeting Date December 9, 2015
Agenda Item Consent F9
Attachment N/A
Submitted By Sack Thongvanh, City Administrator
Families, Fields and Fair __________________________ Page 97 of 169
BLANK PAGE
Page 98 of 169
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Budget amendments for year end.
Description Sometimes, at the end of the year, budget amendments need to be made to improve
the financial statements for year end. Staff recommends the following
amendments:
Parks and Public Works Capital (403). Work continued during 2015 with the
Curtiss Field Improvements after the 2015 budget had been completed. During the
budgeting process it was not possible to estimate expenditures since it was
unknown what was to be done at Curtis Field Park during 2015. The city has
utilized park dedication funds for these improvements. Staff recommends
amending the budget expense line item for park dedication improvements (403-
4403-92000) by $70,000.
TIF District # 1-2 Capital Fund had some additional expenditures occurring as the
TIF district is closing. The city hired Ehlers and Associates to assist. Staff
recommends amending the expense line item for other professional services
(412-4412-81900) by $5,000.
Budget Impact Establish and amend budget line item amounts as listed above.
Attachment(s) NA
Action(s)
Requested
Staff recommends establishing and amending the budget line items as
recommended above. These are basic bookkeeping entries to improve the financial
statements for end of year.
Meeting Date December 9, 2015
Agenda Item Consent F10
Attachment
Submitted By Roland Olson, Finance Director
Families, Fields and Fair __________________________ Page 99 of 169
BLANK PAGE
Page 100 of 169
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Approve Century Link Franchise Ordinance
Description
The City Council held a public hearing on November 18PPPP
th
PPPP, 2015 to discuss the
CenturyLink Franchise Ordinance and Findings.
UUUUBACKGROND
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.
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.
The CenturyLink PEG commitments are summarized as follows:
• UUUUNumber of Access ChannelsUUUU. CenturyLink will provide 16 Access
Channels (greater overall number of Access Channels than Comcast).
• UUUUFormat of Access ChannelsUUUU. 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).
• UUUUElectronic Programming GuideUUUU. CenturyLink will have similar
Meeting Date December 9, 2015
Agenda Item Policy G1
Attachment Ordinance & Document(s)
Submitted By Sack Thongvanh, City Administrator
Families, Fields and Fair __________________________ Page 101 of 169
requirement as Comcast.
• UUUUChannel PlacementUUUU. 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).
• UUUUPublic Service AnnouncementsUUUU. CenturyLink will allow the
Commission to air PSA’s on non-Access channels during periods of
unsold/unused airtime (Exceeds Comcast’s commitment).
• UUUUVideo On-DemandUUUU. CenturyLink will provide 25 hours of VOD per
member city (Exceeds Comcast’s PEG commitment).
• UUUUPEG SupportUUUU. 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:
• UUUUTermUUUU. CenturyLink’s Franchise term is 5 years. Comcast’s term is 15+
years.
• UUUUIndemnification of the City/NSCCUUUU. CenturyLink has an additional
indemnification commitment that Comcast does not have.
• UUUUAccess Channel CommitmentsUUUU. 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.
• UUUUTwin Cities Metro PEG Interconnect NetworkUUUU. 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.
• UUUUPenalties/Liquidated DamagesUUUU. CenturyLink franchise has additional
damages for violating the Build-Out and Economic Redlining
provisions of the franchise that is not in the Comcast franchise.
• UUUUBuild-OutUUUU. 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.
UUUULine ExtensionUUUU. The CenturyLink franchise does not have an immediate line
extension requirement. The Commission will determine a line extension obligation
Page 102 of 169
similar to Comcast’s line extension if CenturyLink obtains a 50% penetration level in
the city. Comcast has a line extension requirement.
Budget Impact CenturyLink will be required to pay a franchise fee of 5% of its Gross Revenues.
Attachment(s) • CenturyLink Findings
• Ordinance 15-04 Approving CenturyLink Franchise Agreement
Action(s)
Requested
Staff would recommend approval of attached ordinance for CenturyLink to operate
within the City of Falcon Heights and direct staff to draft findings consistent with its
decision.
Page 103 of 169
BLANK PAGE
Page 104 of 169
ORDINANCE NO. 15-04
CITY OF FALCON HEIGHTS
CABLE TELEVISION FRANCHISE ORDINANCE
December 9, 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
Page 105 of 169
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
Page 106 of 169
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
ii Page 107 of 169
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
iii Page 108 of 169
ORDINANCE NO. 15-04
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 FALCON HEIGHTS; 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 Falcon Heights 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 Falcon Heights, 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.
Page 109 of 169
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.
2 Page 110 of 169
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
3 Page 111 of 169
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.
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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.
5
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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
6
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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
7 Page 115 of 169
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
8 Page 116 of 169
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
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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 Falcon Heights 2077 Larpenteur Avenue W.
Falcon Heights, Minnesota 55113
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Attention: City 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
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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
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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
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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
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(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
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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.
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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.
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(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:
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(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.
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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
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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
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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 Administrator 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
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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
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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 Administrator 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.
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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.
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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
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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
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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
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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.
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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.
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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.
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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
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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
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assist thereof, any part or segment of the System for any purpose whatsoever, except for any
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
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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.
35 Page 143 of 169
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 9th day of December, 2015.
ATTEST: CITY OF FALCON HEIGHTS
By: _______________________________ By: _____________________________
Its: City Administrator Its: Mayor
ACCEPTED: This Franchise is accepted and we agree to be bound by its terms and conditions.
Dated: December 9th, 2015 By: _____________________________
Its: City Administrator
36
Page 144 of 169
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 Falcon Heights, 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 Falcon Heights 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 1
Page 145 of 169
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 2
Page 146 of 169
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 FALCON HEIGHTS
By ____________________________________
Its: City Administrator
Department Head Responsible
For Monitoring Contract
__________________________
Approved as to form:
__________________________
Assistant City Attorney
NORTH SUBURBAN COMMUNICATIONS
COMMISSION
By: __________________________________
Its: __________________________________
Ex. A 3
Page 147 of 169
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Page 148 of 169
CITY OF FALCON HEIGHTS, 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
Page 149 of 169
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.
Page 150 of 169
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 November 18, 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
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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
Page 152 of 169
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.
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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
Page 154 of 169
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.
Page 155 of 169
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.
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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.
Page 157 of 169
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Page 158 of 169
10 River Park Plaza St. Paul, MN 55107 www.comcastcorporation.com
VIA ELECTRONIC MAIL
December 3, 2015
Mayor Peter Lindstrom
City of Falcon Heights
2077 Larpenteur Avenue West
Falcon Heights, MN 55113
Dear Mayor Lindstrom:
I am writing to provide Comcast’s comments regarding the CenturyLink Cable TV Franchise
Ordinance that was presented for a First Reading at the November 18, 2015, City Council
Meeting (“Summary” and “Proposed Franchise”). Thank you in advance for considering this
input. As we have stated previously and in the public record in front of the North Suburban
Cable Communications Commission (see attached), Comcast welcomes robust competition and
we do not oppose the granting of an equitable cable franchise to Qwest Broadband Services or
its d/b/a, CenturyLink.
Comcast is however concerned with the competitive inequities created by some of the
obligations in the proposed CenturyLink franchise that are materially different from the
obligations in Comcast’s current franchise with the City. As you are aware from the Summary,
Minnesota Statute 238.08, subd. 1(b) requires that the City cannot grant an additional franchise
with “terms and conditions more favorable or less burdensome than those in the existing
franchise pertaining to (1) the area served…” Furthermore, the FCC expressly allows buildout
requirements in franchise agreements so long as they are “reasonable.” 1
Section 2(7) of CenturyLink’s proposed franchise requires that CenturyLink build to only 15% of
the City. The supporting documents, however, contains no discussion of what may be a
reasonable requirement for [X] or why CenturyLink’s proposal, that fails to address 85% of its
citizens, meets this standard. “Less burdensome” certainly requires more than what
CenturyLink has offered. And while Section 2(7) of the proposed franchise requires that “a
significant number of households below the medium income of the city” it offers no instruction
as where CenturyLink must build and no clear way to ensure CenturyLink meets that standard.
1 Implementation 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, Order on Reconsideration, at para.7 (rel. Jan 21,
2015).
Page 159 of 169
Mayor Peter Lindstrom
December 1, 2015
Page 2 of 3
At the very least, the City must impose actual binding and enforceable requirements to serve
equitably throughout the community. This will protect competitive and consumer equity and
prevent selective service deployment. It will equalize the investment that all providers will be
required to make in return for access to the public rights of way. It will ensure that competition
develops according to which provider can best serve subscribers and not according to which
provider enjoys the most advantageous regulatory requirements. Finally, it will meet both
state and federal requirements.
PEG funding will also be inequitable and more burdensome on Comcast, and all cable
customers, if the CenturyLink franchise is adopted as proposed. Again, Minnesota statute is
clear on this issue. Minnesota Statutes 238.08, subd. 1(b) requires that the City cannot grant
an additional franchise with “terms and conditions more favorable or less burdensome than
those in the existing franchise pertaining to (2) public, educational, or governmental access
requirements...” Inequitable PEG funding is a clear example of creating more favorable
franchise conditions to a new entrant, and in turn, a more advantageous regulatory
environment.
Comcast is required to pay three significant up-front annual grants to the Commission: a
$50,000 annual equipment grant; a $100,000 annual scholarship grant that increases annually
and was $109,693.66 in 2015; and an annual PEG grant (paid quarterly) that also increases
annually and was $1,347,166.47 in 2015. The amount of these grants, in total, is what the
Commission has claimed is required to run its PEG operations. This total PEG funding amount,
which was $1,606,860.13 in 2105 and is growing every year, is paid to the Commission as up-
front cash grants, regardless of how many subscribers Comcast has in the Commission area.
Comcast subsequently recovers the total amount from subscribers as a per-month, pass
through amount. This means that a lower numbers of Comcast subscribers in the Commission
area results in a higher per-month pass-through for all Comcast customers.
Section 6(4) of CenturyLink’s proposed franchise does not require CenturyLink to participate in
any of the current up-front grants that Comcast is required to provide the Commission but
requires only that CenturyLink match our monthly per-subscriber PEG fee in which Comcast
uses to recover the grants. It is absolutely more burdensome on Comcast to have to contribute
its own capital as up-front cash grants as opposed to the collecting and remitting regime that is
being offered to CenturyLink.
As important, not requiring CenturyLink to participate in the up-front grant funding means that
instead of both cable operators and cable customers sharing the burden of the PEG funding, the
Commission is expanding the burden on cable customers. The monthly per-subscriber PEG fee
Page 160 of 169
Mayor Peter Lindstrom
December 1, 2015
Page 3 of 3
is determined solely on the number of customers that Comcast has, and could rise dramatically
if Comcast loses customers. This means that the PEG fee burden on all cable customers also
rises, and yet this rise has absolutely no relationship to the need of the Commission for
increased PEG funding.
If the Commission continues to require significant up-front capital grants those grants must be
shared by both cable operators. In the alternative, Comcast will also move to a per-month, per-
subscriber PEG fee funding mechanism of $4.15.
Comcast requests that the City Council require these issues be discussed now to ensure that the
obligations on CenturyLink are not more favorable or less burdensome than those in Comcast’s
existing franchise. As always, please feel free to call me if you have any questions or would like
to discuss these issues further.
Sincerely,
Emmett V. Coleman
Vice President External Affairs
CC: Pamela Harris, Councilmember
Chuck Long, Councilmember
Beth Mercer-Taylor, Councilmember
Joe Brown Thunder, Councilmember
Sack Thongvanh, City Administrator
Page 161 of 169
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Page 162 of 169
Bradley Hagen & Gullikson, LLC
1976 Wooddale Drive Suite 3A Woodbury, MN 55125 (651) 379-0900 BradleyLawMN.com
December 4, 2015
The Honorable Peter Lindstrom
Mayor, City of Falcon Heights
2077 Larpenteur Avenue West
Falcon Heights, MN 55113
Re: Comcast Letter Dated December 4, 2015
Dear Mayor Lindstrom:
As you know, I represent the North Suburban Communications Commission, in which
the City of Falcon Heights is a member. Today, I received a copy of a letter that Comcast sent to
you related to the proposed CenturyLink cable franchise. It’s somewhat surprising and
disappointing that Comcast would send such a letter claiming competitive inequities today even
though there was a Commission meeting in October, where the proposed CenturyLink franchise
was discussed, and another public hearing last month at the City. Of course that does not even
include the other public meetings where other member cities of the NSCC took action to
consider and approve the CenturyLink cable franchise.
Despite the 11th hour nature of the Comcast letter, I’d like to briefly address the concerns
raised. The first issue raised relates to how the proposed CenturyLink cable franchise addresses
the build out of the City. The exact concern is somewhat unclear from the letter as it refers to
having “no discussion of what may be a reasonable requirement for [X]…” I don’t know what
“[X]” is referring to, so I can only conclude that this is some type of form letter being used to
challenge CenturyLink cable franchises generally. As far as the proposed CenturyLink cable
franchise is concerned, it would grant a franchise to CenturyLink to serve the entire corporate
boundaries of the City, which is the same as Comcast’s commitment.
The proposed franchise also acknowledges that CenturyLink has already constructed a
legacy communications system throughout the City and will be upgrading its system to enable
the company to provide cable television service. CenturyLink’s build-out commitments are
based on the market-based success of CenturyLink, which the FCC has deemed to be reasonable.
That is addressed in the proposed franchise, the Staff Report and the Staff Memo that I believe
were in the packet of the Council’s last meeting.
The second concern raised by Comcast relates to Access Television funding. Comcast
provides funding through grants, which it then recovers from subscribers in the form of a PEG
Fee. CenturyLink will provide the same PEG Funding on a per subscriber basis. Subscribers in
the City will be subject to the same PEG Fee by both companies, which we believe is fair and
reasonable and is not more favorable or less burdensome to either company, particularly in light
Page 163 of 169
The Honorable Peter Lindstrom
December 4, 2015
Page 2 of 2
of the fact that CenturyLink has zero cable subscribers. Access Television funding is also a topic
of our on-going franchise renewal discussions with Comcast. We remain committed to
discussing Access Television funding in those discussions.
Very Truly Yours,
BRADLEY HAGEN & GULLIKSON, LLC
Michael R. Bradley
Page 164 of 169
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Declaration of Official Intent for Reimbursement for 2015 Pavement Management
Project
Description
The City from time to time will borrow from other funds to finance projects with the
intent to reimburse those funds once the City issues a bond. The reasoning for this
approach is to minimize the cost of issuing multiple bonds and to attract
competitive bids for interest rates.
Budget Impact The purpose is to allow the City to reimburse ourselves, minimize issuing bonds
and attract better interest rates to reduce overall cost to the City.
Attachment(s) • Declaration of Official Intent
Action(s)
Requested
Staff would recommend approving the Declaration of Official Intent for
Reimbursement for 2015 Pavement Management Project.
Meeting Date December 9, 2015
Agenda Item Policy G2
Attachment Declaration of Intent
Submitted By Sack Thongvanh, City Administrator
Families, Fields and Fair __________________________ Page 165 of 169
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Page 166 of 169
Declaration of Official Intent
The undersigned, being the duly appointed and acting City Administrator of the City of
Falcon Heights, Minnesota (the "City"), pursuant to and for purposes of compliance with Treasury Regulations, Section 1.150-2 (the "Regulations"), under the Internal Revenue Code of
1986, as amended, hereby states and certifies on behalf of the City as follows:
1. The undersigned has been and is on the date hereof duly authorized by the City Council to make and execute this Declaration of Official Intent (the "Declaration") for and on behalf of
the City.
2. This Declaration relates to the following project, property or program (the "Project") and
the costs thereof to be financed:
2015 Pavement Management Project (PMP)
1. Roselawn Ave
2. Snelling Service Drives
3. The City reasonably expects to reimburse itself for the payment of certain costs of the Project out of the proceeds of a bond issue or similar borrowing (the "Bonds") to be issued by the
City after the date of payment of such costs. As of the date hereof, the City reasonably expects
that $300,000 is the maximum principal amount of the Bonds which will be issued to finance the
Project.
4. Each expenditure to be reimbursed from the Bonds is or will be a capital expenditure or a
cost of issuance, or any of the other types of expenditures described in Section 1.150-2(d)(3) of
the Regulations.
5. As of the date hereof, the statements and expectations contained in this Declaration are believed to be reasonable and accurate.
Date: December 9, 2015
City Administrator
City of Falcon Heights, Minnesota
Page 167 of 169
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Page 168 of 169
CERTIFICATION
The undersigned, being the duly qualified and acting City Administrator of the City of
Falcon Heights, Minnesota, hereby certifies the following:
The foregoing is a true and correct copy of a Resolution on file and of official, publicly
available record in the offices of the City, which Resolution relates to procedures of the City for
compliance with certain IRS Regulations on reimbursement bonds. Said Resolution was duly
adopted by the governing body of the City (the "Council") at a regular or special meeting of the
Council held on ________________, _____. Said meeting was duly called, regularly held, open
to the public, and held at the place at which meetings of the Council are regularly held. Council
Member ____________________ moved the adoption of the Resolution, which motion was
seconded by Council Member _______________________. A vote being taken on the motion,
the following members of the Council voted in favor of the motion to adopt the Resolution:
and the following voted against the same:
Whereupon said Resolution was declared duly passed and adopted. The Resolution is in
full force and effect and no action has been taken by the Council which would in any way alter
or amend the Resolution.
WITNESS MY HAND officially as the City Administrator of the City of Falcon
Heights, Minnesota, this ____ day of ____________, _____.
City Administrator
City of Falcon Heights, Minnesota
Page 169 of 169