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HomeMy WebLinkAbout06/02/2008 Council PacketWORK SESSION AGENDA CITY OF LINO LAKES Monday, June 2, 2008 CITY COUNCIL WORK SESSION Community Room (not televised) 5:30 P.M. 1. 2007 Audit Presentation 2. Comprehensive Plan Update 3. Community Infoiiiiation Sign - Lions Club Donation 4. Preliminary Budget Guidance 5. Town Center Update 6. R.O.W Management Ordinance 7. Xcel Electricity, Gas Franchise Agreement 8. Amendment to Liquor Ordinance 9. Review of Regular Meeting Agenda Adjourn PAGE 1 WS -1 WORK SESSION MEMORANDUM STAFF ORIGINATOR Al Rolek MEETING DATE June 2, 2008 cCA TOPIC 2007 Audit Report ° wvt (.4.t.dadti* Brock Geyen of Larson, Allen, Weishair & Company will be in attendance at the meeting to present the 2007 Annual Financial Report and provide an overview of the City's financial statements, present the auditor's management analysis and answer any questions you may have with regard to the financial condition of the City. The 2007 annual audit was undertaken by the City's auditors, Larson, Allen, Weishair & Company, LLP, earlier this year, with field work being completed in late March. The auditors review all financial transactions and the financial reports of the City over the previous year for their fairness in presentation and for full disclosure of all material aspects of the City's financial condition. This review is conducted in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in U.S. Government Auditing Standards, issued by the Comptroller General of the United States. The auditors concluded that the City's financial statements for 2007 presented fairly, in all material respects, the financial position of the City as of December 31, 2007. The auditors also issue their reports on the City's legal compliance with certain laws, regulations, contracts, etc., our internal control structure, and management issues. It should be noted that the City has received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada for its 2006 Comprehensive Annual Financial Report. We believe that the report issued for 2007 continues to uphold the standards of reporting excellence that this prestigious award represents. The presentation at the work session will be comprehensive and is intended to provide the opportunity for council members to ask any questions or make comments about the audit report and the state of city finances. Mr. Geyen will also give an abbreviated presentation at the regular City Council meeting on June 9, 2008, and the staff recommends that the City Council formally, by motion, accept the 2007 Annual Audit Report at that time. • • WS — Item 2 WORK SESSION STAFF REPORT Work Session Item 2 Date: Council Work Session, June 2, 2008 To: City Council From: Michael Grochala Re: 2008 Comprehensive Plan Process Update Background The Comprehensive Plan Update process has now been underway for nearly two years starting with the 2006 Community Survey. A community wide visioning process was commenced shortly after and culminated with the acceptance of the 2030 Vision Plan in February of 2007. The 2030 Vision Plan included four vision elements that emerged as the priority areas of emphasis that must be addressed in order for citizens' desires for the future to become a reality. The four vision elements are: Community, Residential and Neighborhood Development Economic and Commercial Development Roads and Transportation Community Amenities and Natural Resources Each vision element included a 2030 vision statement, proposed long range goals and suggested strategies to be pursued. These goals and strategies provided the basis for the Comprehensive Plan Advisory Panel's work that "kicked -off' in March of 2007. Through a series of workshops the advisory panel reviewed and expanded upon the goals and strategies prepared in the 2030 plan. The draft Comprehensive Plan Goals and Strategies, representing the collective work of the citizen advisory panel and city advisory board members, was presented to the City Council in June of 2007. During the summer and fall of 2007 the advisory panel concentrated its efforts on land use alternatives for the City. This process included reviewing existing land use, proposed growth corridors, and the land development suitability information provided by Mr. Jason Husveth of Critical Connections, Inc. These discussions led to the development of the "Full Build" land use plan and draft staging plan. These plans were presented to the City Council in December of 2007. On Tuesday, December 4, 2007 the City hosted a Comprehensive Plan "Open House ", which provided residents an opportunity to review and comment on the draft Land Use 1 Plan and other work products. The Open House was attended by 42 residents and comments received were generally positive. Most notably the City was commended for the collaborative work with the Rice Creek Watershed District. During the past five months the advisory panel has worked almost exclusively on growth management, the 2030 Land Use Plan, and the 2030 Staging Plan. In January the panel kicked off the 2030 plan development with a meeting dedicated solely to growth management legal foundations, the City's existing policy and alternatives. This discussion and the panel's work was presented at a joint meeting of the council and city advisory boards in February. During March and April the panel continued its work on the land use and staging plans as well as growth management issues. At its May 16, 2008 meeting the Comprehensive Plan Advisory Panel reached consensus of the following: 1. 2030 Forecasts to be used for the 2030 Comprehensive Plan 2. Draft 2030 Staging Plan 3. Draft 2030 Land Use Plan 4. Revised Comp Plan Process schedule Forecasts The proposed 2030 forecasts for both households and employment provide for 6,600 new households and 4,080 new jobs by 2030. The forecasts are based on the market demand analysis conducted in 2006, which were adjusted by Bonestroo to reflect the current slowdown in the market and were refined somewhat following discussions with Metropolitan Council staff. The forecasts play an important part in the comprehensive planning process but we should not make them more than what they are. They are an "educated" guess at what we need to plan for. Essentially they provide us with a starting point to identify constraints in our system plans, land use needs, and ultimately infrastructure needs. The Metropolitan Council uses the forecasts to plan for and prioritize regional infrastructure investments such as the sanitary sewer and transportation systems. The council also uses the forecasts in conjunction with the city's land use plan to evaluate density guidelines. For Lino Lakes this means an average density of 3 to 5 residential units per net acre of developable land. The purpose of the density guidelines is to ensure development at a suitable density to achieve efficient and cost effective regional investment in infrastructure. You may notice that the household numbers computed, by land use district, use the low end of the density range i.e. 1.5 units /acre for low density residential (see attached Table 3). Met Council requires density to be calculated in this manner to make certain that the appropriate density is achieved. The forecasts are higher than what Metropolitan Council originally provided. The prior forecasts were constrained by the city' s growth management policy of limiting new development to an average of 147 units per year. The proposed forecasts, as stated an k di ( cti -t 2 • • • • • above, are based on potential market demand and are not proposed to be restrained by a city imposed "cap ". The advisory panel reached consensus to move forward with the proposed market demand forecasts and is not proposing to implement a "cap" on the units per year. Due to the proposed change, the City will need to formally request a forecast revision by Metropolitan Council. Our plan is to submit the request following approval of the draft Comprehensive Plan for adjacent jurisdiction review. Draft 2030 Staging Plan The draft 2030 Staging Plan represents the location and timing of sewered development through the planning period. The staging areas have been sized to provide the necessary land supply to accommodate the forecasted household numbers anticipated through 2030. The staging areas are based primarily on the city's sanitary sewer service districts and in place infrastructure to insure the efficient expansion of municipal services as development takes place. The advisory panel is in agreement with the draft 2030 Staging Plan. The advisory panel did discuss the concept of providing excess land or a "wider search area" to provide more flexibility for development. However, after further consideration by staff and the panel, this was not implemented. The area of each staging district is based on the land supply needed to accommodate the household forecasts using the low end of the density range for each residential land use district. Over the past six years, the city has participated in Metropolitan Council's plat monitoring program and this data shows that, on average, actual development densities have been slightly higher than the low end of the density range. For example low density residential (single family) development has been built at an average density of 1.9 units per acre during this time period, whereas the low end of the density range is 1.5 units per acre. Therefore, as actual development takes place, we are likely to see the same number of units accommodated on less land. This should provide the flexibility desired. Draft 2030 Land Use Plan The draft 2030 Land Use Plan, as presented, accommodates both the 2030 household and employment market based forecasts and is consistent with the staging plan. Please note that the land area calculations assume that all property guided for development through 2030 will actually develop. This is unlikely due to a number of reasons, but most notably because individual property owners may not choose to develop. Growth Management Framework Growth management is an extremely important component of the city's Comprehensive Plan, but is not limited to the plan itself. As the alternative to the City's existing growth management policy, staff, consultant team and the advisory panel are proposing to develop and strengthen an overriding framework for growth management. From a 3 strategy standpoint, the emphasis on growth management is focusing more on design and quality rather than rate or quantity. Our framework started with the 2030 Vision Plan that commenced in 2006 and was completed with the acceptance of the council in 2007. This document provided the aspirations of the community as it looked toward the future. In doing so, the vision document provided the basis for the goals and strategies to be included in the Comprehensive Plan. The Comprehensive Plan, as defined in state law, means a compilation of policy statements, goals, standards, and maps for guiding the physical, social and economic development, both private and public, of the municipality and its environs, and may include, but is not limited to, the following: statements of policies, goals, standards, a land use plan, including proposed densities for development, a community faciliti s plan, a transportation plan, and recommendations for plan execution. A comprehensive plan represents the city's recommendations for the fu ure development of the community. Unique to Lino Lakes, our plan has the added advantage of incorporating the Resource Management Plan (RMP) through a collaborative effort with the Rice Creek Watershed District. From a natural resource and storm water management perspective, this plan represents the backbone of our comprehensive plan and a new component of the city's framework for managing growth. The RMP not only establishes a conservation design framework for the city as a whole, but also provides the tools to implement it through its associated rule. When coupled with the city's plan, it becomes an extremely effective tool to manage the development of our city. The conceptual overlay of the RMP area is included in the attached Drainage Map. These three plans, however, are still only part of the greater framework. Once completed, the plans will provide the legislative basis for revising our "official controls ". Official controls include ordinances establishing zoning, subdivision controls, site plan regulations, shoreland management, building codes and official maps. Modification to our engineering design standards and policies including stormwater management, utilities, and streets, are also included as part of the plan implementation. The city's Five Year Financial Plan and Capital Improvement Plan also play a part in the overall growth management framework of the city. These plans prioritize and guide the service and infrastructure investments of the city. They are extremely important as implementation tools of the Comprehensive Plan. It is the sum of all these parts, effectively integrated, that provides the city with a strong growth management framework. As we prepare the Comprehensive Plan document, we will be evaluating these parts and providing the necessary policy requirements to ensure their integration. Minnesota Statutes, Section 462.351, 4 • • • attached, provides a policy statement describing the purpose for the establishment of Municipal Planning and Development. It is the hope of staff and the advisory panel that our collective goal would be to develop a plan consistent with the Legislature's intent of providing municipalities the authority to plan. Process Next Steps Attached for your review is a revised process schedule for completion of the plan. During the next two months, staff and the consultant team will be drafting the plan text and the associated system plans. We also intend to hold our second Open House to provide an opportunity for public comment on the 2030 staging and land use plans as well as the RMP. During this period, we will be expanding on the growth management framework from a policy standpoint. Concurrently we will develop implementation guidance for issues such as expanding into Stage 2 development areas prior to their identified year. We will also be revising individual planning district guidance. In the existing Comprehensive Plan the city is broken into seven planning districts. The district chapters contain site specific information such as the 49/J Master Plan requirements or area specific goals and policies, such as establishing gateways or design criteria for redevelopment of Lake Drive. Staff is planning to complete the plan document for distribution to the advisory panel prior to the end of July. We would then review elements of the plan over the next four weeks in August. Another Open House would be held in late August with the Planning & Zoning board holding a public hearing in September. The plan would then be reviewed by the City Council in October with approval for distribution to adjacent jurisdictions for review in November. Council Direction Staff is requesting comments from the City Council on the proposed forecasts, plans, and growth management framework. Attachments 1. Draft 2030 Growth Forecast Revisions 2. Draft 2030 Staging Map 3. Draft 2030 Land Use Plan 4. Draft Drainage Map 5. Proposed Project Schedule 6. Minnesota Statues Section 462.351 5 Proposed Household Forecast Revisions Household Forecast 1008 -1030 Change O O ..O O O �O O O O M O O O ',O %.O N O N O O O 1'4 O L-r% O — — N O% O Year O O O O O N • ,..o O O r' L-^ r• 1-r1 O r CO CO 'a- Household Forecast Metropolitan Council Forecast (original) Proposed Household Forecast Revision O O •'O C 0 4-J L c kd 492 O E ' ro fo ^ C 0 4U a) O j' 0- 1 ro .� ;-' V) N D °) -0 0 i ON N O ate-+ -0 - U '_ c'"�5 C o U u) ro _ O a) U C --1 to 4_, 0 0 O C E O ▪ J C3 UO L 2 C ra ro "o N O ate..' "0 a0' Ol O a' to C O C - a.-' L O '^ O vO L 0 o U LO O = al Q1 cu • .+ r1 C -v • I L O a-•' ( (r) ro L ro r▪ u roc a) CD 4-j a •� 0 � D aS 0 • C -0 - -o c E a) a) n Ln Q) o to +-, 0 0 a-n U .0 .0) _ ON a) C C C C z 0 L a A ID (n r-1 Q IT) to Q CU to c a) O E O co fa Q • 0 0 F_ z I- mo- 0 z a. 20 C • • • to to Q Proposed Employment Forecast Revisions O a E Ln U U) C fII -D 0 U ra C rn 5 O ac Oi L y= U a) Q) G U) u') O © '5 M O O Q L cB -0 - a) ro U -0 Ln C � U O C (0 a) C 0_ cz 2 C a) E Ql a)c ate.-+ (B • O E O O U � • U L (1 - ▪ U rB U a) L O }' C O a) -0 E vOi O N cu Q u) a) F- QUO O a�N fa �-+ O Q a) • QUO ra CL) Q) Q -= u Q) r0 rp • N O • O 1_ Table 2. Employment Forecast 2008 - 2030 Change O O r� O M O o O O M L19 O 0 w-I O V M O p O O f'V O O G M f V lr PV M ,-O C °O O o a — PV N c' Od- "rzr. e•-i Employment Forecast Metropolitan Council Forecast (original) Metropolitan Council's Proposed Forecast Revision • 1— O E x a) CD 4 J a) — Q 2 M L 4— O O U N Q) O CU to L ( LP) n O O LP) 0 O N • 164, . C O D -0 O U v M a) C _ a O >, Q Ln 4-' O ra roc C L v) L a) ▪ O O • C O •,--, U Q) (Ns C () C Y J X -p O_ • C 1- • .8--+ _J (B O 0 a.-. a- L +, a - C u) C) 0') L CI) 0') Q a-+ O to a-1 - - • ate+ - 5 rtsc E(0 ID �O O = O U c aM 0 O E 0 O a) • "= U ," ,Q) C c O U .0 •'J • OL Z Q a) "1-I C N Q C O a) L O ( a) C • • • Ln c) Q Households Staging Area Totals 2010 -2020 Total New Households 4,150 I 2,450 Total New Households 6,600 Total Units 323 LIL 827 2107 175 O) CO 1-- CO I` CO 553 (0 N- N 207 12020 -2030 Total New Households Density Range 8.0 - 15.0 LO Cr) 1 LC) T- O) 1` 1 Cfl M 3.9 - 24 LC) r- 1 O r- 8.0 - 15.0 1.5 - 3.5 O) I's: 1 CO Cr; 3.9 -24 1.0 - 1.5 Developable Acres 40 478 230 0) Cr) 163 450 LO 40 ON') c- Land Use High Density Residential Low Density Sewered Residential Medium Density Residential Mixed Use RR Low Density <10 Acres _ High Density Residential Low Density Sewered Residential Medium Density Residential a) co p a) X_ 2 RR Low Density <10 Acres 2010 -2020 2020 -2030 U y V O Q co c O c a) c -D a) L A a-+ `0 O "(7) -o a) c O O U L a) 0 c D to Q co U rr c c a) V a) i ca Q N O a) rn CT O O N a) c L (1.) L O c ro V Q ra +� O N a) O1 c) rn a � o E ii;- u c • (1) c c � o w :( n 2 'O rp /) M O - v C pQ o ° -0 o a) aJ E F- 2 L H c . . . rn Q c v) co c Q O 4L) ca iD -0 o a) °- .0 Q) I" 4J a..+ .— O • 01 C aj O •- a)c C O O •- E .v) E ' O ~ v C o ° .,- a) (f) _c) c 71- cc a(1' 01 _0 c 1- o ) ) ca (1 v- )V. -0 O O M co O a) N = A -0 u) C rri O O .-' O• a) N C O co co O -0 d' n)+, 4, n3 >.a) a-+ L o _0 °- E O Q O o C V C In f0 O -0 0 CO V) C 4-' O O a) c n — N 1 4- -I -C a) A � O— C. o O ca p, _C C I- = Cr) a) c V) • c C • .a - O o :Q CO i .0 J 1- a- in Table 4. Land Supply to Accommodate New Job Growth Land Use 1 Developable Acres 1 Total New Employees Commercial 1 281 I 1,615 Industrial 1 156 1 898 Mixed Use Commercial Acres I 119 1 685 2010 -2020 Total New Jobs 311981 CD N co CO LC) 2020-2030 Total New Jobs 882 O 00 O_ 144 10 Industrial Mixed Use Commercial Acres 'Staging Area 2010 -2020 2020 -2030 Total New Jobs O 92 U no a) .a [0 a. _O a) > CD a) >• D a) Q E v) ca v) c a) -o c a) E O a. 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IL'! 80th_ St. E If D George Watch Lake Marshan Lake Z ai > Peltier Lake ("1 r••—••—•■..•...■ •.••. ■•. ••.•••. ••- •.•••••■••■•••■•• • 1 1 i City of Centerville • 1 N ■ ■1•0■•Im ■■ N ■ ■•■■ ■N• ■ ∎ ■I • Rice Creek Chain of Lakes Regional Park Reserve Centerville Lake Rice Lake 1 • ■ 140 ■N N■ � 1 Main St. oar , �i.. .97 •ria. a 40. 9, 1- mI I Reshanau Lake ....`nudi oun... i Baldwin • Lake 64th St. -I- rl� Cedar Lake Amelia Lake • — _ 2 1 ■•••.111•■ ••••• 0 ■N•••••■ • ■ ∎■■N•■N•• ∎•• ∎ ■••. ■••.• ■•.•L•■ •.•• ••••• ■•• ■•• ■•• ••■■■ ■•• s■■ .■••• •••••_■■___-------_---------- ■-- ■- ∎•• ∎•• ∎•• ∎•• ∎■■■•■■∎ Otter Lake Draft 2030 Land Use Plan City of Lino Lakes 2008 Comprehensive Plan Update 4,000 0 4,000 Feet 1_11.1 Municipal Boundary Rural Land Use Urban Reserve Low Density Residential Medium Density Residential High Density Residential Manufactured Home Park NM Commercial Mixed Use MI Industrial ® Civic /Institutional Park/Open Space Private Airfield Rig ht -of -Way Open Water April 21, 2008 Prepared by Bonestroo K: /activework /Gisserver/ 000586 - 06001 -0 linolakescomplan /urban reserve.mxd • • • .._..••••••■• •. ■••■••■••■•.1•••• ••■••■•._ Rondeau Lake Main St. Peltier Lake Lilac George ► atch ..■■■..■.. _ ••■••■•••••••■•• ..ew- ■ Ma han La e R. Creek ain . Centervill Regional Park Reserve Lake Resh- au L VBi h St. irch St 4th St. E Amelia Lake .._.. _.. Drainage Map City of Lino Lakes 2008 Comprehensive Plan Update .L\ 4,000 0 4,000 Feet 4-4-1 Major Drainage Routes Minor Drainage Routes Creek Ditch - Main Stem Ditch - Branch Municipal Boundary Resource Management Unit Catchments Right -of -Way Open Water Wetlands C 1 T Y 0 F Wetland Preservation Corridor N.I. KES Habitat Corridor Linkages May 20, 2008 Prepared by Bonestroo K: /activework/Gisserver /000586- 06001 -0 linolakescomplan/Drainage map.mxd Lino Lakes Comprehensive Plan Proposed Schedule May 15, 2008 Date /Timeframe Group Purpose May — June 2008 Consultants Prepare Draft Comprehensive Plan June — July 2008 Technical Committee Review Draft Comprehensive Plan Late June 2008 Public Open House Provide an opportunity for the general public to review and comment on the draft 2030 land use and staging plan maps and the RCWD Resource Management Plan June 2008 Technical Committee meetings with agencies and school districts Discuss comprehensive planning topics such as land use, resource management, staging, growth forecasts, etc. July 29, 2008 Advisory Panel Review Draft Comprehensive Plan Chapters • Land Use and Growth Management • Resource Management Plan ( "Green Infrastructure ") August 4, 2008 Park Board Review Draft Comprehensive Plan August 6, 2008 Advisory Panel Review Draft Comprehensive Plan Chapters • Economic Development • Housing • Community Facilities August 7, 2008 EDAC Review Draft Comprehensive Plan August 12, 2008 Advisory Panel Review Draft Comprehensive Plan Chapters • Transportation • Water • Sewer August 19, 2008 Advisory Panel Review Draft Comprehensive Plan Chapters • Implementation • Wrap Up outstanding issues in other chapters August 27, 2008 Environmental Board Review Draft Comprehensive Plan Late August 2008 Public Open House Provide an opportunity for the general public to review and comment on the Draft 2030 Comprehensive Plan September 2008 City Boards & Commissions If desired, additional discussion of draft comprehensive plan September 10, 2008 P & Z Board Public Hearing on Draft 2030 Comprehensive Plan September 12, 2008 Technical Committee Review comments and recommend revisions to the draft plan September 24, 2008 P & Z Board (special meeting) Respond to public hearing comments and recommend that the City Council authorize distribution of the draft plan for adjacent community review October 6, 2008 Council Workshop Review Draft Comprehensive Plan October 20, 2008 Council Workshop (special meeting) Review Draft Comprehensive Plan October 27, 2008 Council Meeting Review Draft Comprehensive Plan and authorize its distribution for adjacent community review November — December 2008 Adjacent Jurisdiction Review Required by state law — identify and discuss regional (multijurisdictional) planning opportunities and issues December 2008 Adjacent Jurisdictions City hosted meeting to discuss regional (multijurisdictional) planning opportunities and issues January 2009 Technical Committee Review comments and recommend revisions to the draft plan January 2009 Advisory Panel Review recommended revisions February 11, 2009 P & Z Board Public Hearing on revised Draft 2030 Comprehensive Plan. Recommend approval to City Council February 23, 2009 City Council Adopt the Comprehensive Plan contingent upon Met Council Review March — May 2009 ' Metropolitan Council Review Required by state law — review draft 2008 Comprehensive Plan's consistency with regional system plans and policies May 2009 City Council Final plan adoption 1 . 462.351 MUNICIPAL PLANNING AND DEVELOPMENT; POLICY STATEMENT. The legislature finds that municipalities are faced with mounting problems in providing means of guiding future development of land so as to insure a safer, more pleasant and more economical environment for residential, commercial, industrial and public activities, to preserve agricultural and other open lands, and to promote the public health, safety, and general welfare. Municipalities can prepare for anticipated changes and by such preparations bring about significant savings in both private and public expenditures. Municipal planning, by providing public guides to future municipal action, enables other public and private agencies to plan their activities in harmony with the municipality's plans. Municipal planning will assist in developing lands more wisely to serve citizens more effectively, will make the provision of public services Tess costly, and will achieve a more secure tax base. It is the purpose of sections 462.351 to 462.364 to provide municipalities, in a single body of law, with the necessary powers and a uniform procedure for adequately conducting and implementing municipal planning. • • Lino Lakes Public Services Department 600 Town Center Parkway Lino Lakes, MN 55014 (651) 982 -2440 Fax (651) 982 -2439 Memorandum To: Mayor Bergeson and City Council Members From: Rick DeGardner, Public Services Director Date: May 28, 2008 Re: Lino Lakes Lions Message Board Update Staff has evaluated seven locations for potential placement of the message board. Each of the first six locations has significant issues related to the placement of a message board. I have identified the major concerns below. In addition, the first six locations are along Lake Drive and may pose safety issues with vehicle speeds up to 50 mph. Only the last option is located along a 30 mph road. SW quadrant of Lake Drive and Elm Street • Residential zoning prohibits illuminated message boards • Sign Ordinance prohibits message board from facing residential homes • Require JPA with Centennial School District (property owner) Centennial Fire District Station • Presence of emergency vehicles exiting station may create safety concerns • Due to lack of left turn lanes to accommodate commercial businesses (Child Care, Insurance, Pizza, Income Tax, Chiropractor) adjacent to Fire District Station as well as residential homes across the street, potential of rear end collisions may increase with diverting drivers' attention away from the roadway SE quadrant of Lake Drive and Town Center Parkway • Residential zoning prohibits illuminated message boards • Need to rezone to PUD • In conflict with safety sight triangle. Need review and comment from Anoka County • May face significant resident opposition • Need to amend Town Center Design Standards to allow this type of sign • May conflict with future signage when Legacy is fully developed Lino Park • Rural zoning prohibits illuminated message boards • Sign Ordinance prohibits message board from facing residential homes • Would require placement at least 20 feet from western edge of parking lot May 28, 2008 Marshan Park • Residential zoning prohibits illuminated message boards • Sign Ordinance prohibits message board from facing residential homes SE quadrant of Lake Drive and Town Center Parkway • Residential zoning prohibits illuminated message boards • Need to rezone to PUD • In conflict with safety sight triangle. Need review and comment from Anoka County • May face significant resident opposition • Need to amend Town Center Design Standards to allow this type of sign • May conflict with future signage when Legacy is fully developed SE quadrant of Lake Drive and Hodgson Road (Rice Lake Professional Building) • Need Lease agreement • In conflict with safety sight triangle. Need review and comment from Anoka County • Total signage on property must not exceed 200 square feet (including two existing signs already on -site) • Require significant landscape enhancements to complement existing building Civic Complex near western parking lot entrance • Remove existing signage • May limit visibility exiting from parking lot • Traffic volume not considerable until full build out of Legacy Development On May 27, Mr. Heitke and I met with Mr. Benjamin and Mr. Schumacher to review /discuss the information contained above. The Lino Lakes Lions Club desires to further investigate the first two potential sites (SW quadrant of Lake Drive and Elm Street & Centennial Fire District Station). The entrance to the Centennial Middle School /Blue Heron Elementary and Rice Lake Elementary were also identified as possible locations. The most significant obstacle identified with many of the possible sites deals with the portion of the Sign Ordinance that prohibits the placement of illuminated signs adjacent to residential properties. Granting a variance is not a viable alternative. Variances are intended to allow for "dimensional" flexibility (i.e. reduced setbacks) in cases where a physical hardship exists. Rather a text amendment to the Sign Ordinance would be required to allow illuminated signs adjacent to residential properties. Future conflicts would certainly arise since the amendment would entitle additional illuminated signs to be erected adjacent to residential homes throughout the City. 2 • • • May 28, 2008 Estimated Project Costs Sign (Tax exempt) $28,900 Freight (No charge if ordered by June 30) $1,278 Installation (Includes concrete, rebar, conduit, etc.) $5,000 Electrical $4,000 Crane $1,500 Data Cable /Phone Line $400 TOTAL* $41,078 *Does not include brickwork, landscaping, and irrigation Annual Ongoing Costs Electrical $100 Insurance $ 55 Maintenance (Bulb Replacement, etc) $ 50 $205 Other Issues • Content and Design of Identification area (3' x 8') — must identify "City of Lino Lakes" to conform to sign ordinance (off - premises signage not allowed) • Placement and size of Lino Lakes Lions recognition placard • Policy on permitted announcements • Landscaping — Important, regardless of location, the message board looks aesthetically pleasing and conforms to surrounding buildings, etc. 3 • WS -4 WORK SESSION MEMORANDUM To: Mayor and City Council From: Al Rolek Date: June 2, 2008 Re: Work Session Item 4 - 2009 Budget Guidance, Process and Timeline The 2009 budget preparation cycle is now upon us. Staff is requesting guidance and parameters from the City Council within which the draft budget will be prepared. The State Legislature has recently approved limits on local government levies for the next three years. The legislation limits any increase in general levy to the lesser of the annual implicit price deflator, as determined by the Department of Revenue, or 3.9 %, plus 50% of residential and commercial growth. The 2009 budget and levy must be prepared within this limitation. The proposed budget process and timeline for the preparation of the 2009 budget is proposed to remain the same as in past years. To outline the process, budget worksheets have been distributed to all Directors for their respective dep.'talents. Directors will submit their budget requests to the Finance Director by July 9. The City Administrator and the Finance Director will then review the requests with the directors and formulate a proposed budget. The proposed budget will be completed, distributed to the City Council and reviewed at the budget work session proposed for Monday, August 18. The review will be conducted by the Finance Director and City Administrator, with the Directors in attendance to respond to questions. Another work session is proposed for the September work session to review revisions requested by the City Council and to come to agreement on a preliminary 2009 budget. The preliminary budget and levy, as well as Truth in Taxation hearing date, will be approved by the City Council on September 8. The proposed 2009 budget, tax levy and TNT date will be certified to the Anoka County Auditor by September 15. The initial Truth in Taxation hearing is proposed for December 8 prior to the regular City Council meeting. A continuation hearing, if needed, is proposed for the second meeting in December prior to the regular City Council meeting, with the final 2009 budget and tax levy being adopted at a subsequent hearing held during the regular meeting. The final 2009 budget and tax levy will be certified to the Anoka County Auditor by December 28. Again, staff is seeking City Council guidance at the outset of our budget process. Should you have any questions relative to this request or the proposed schedule we can discuss them at the work session. • • WS — Item 6 WORK SESSION STAFF REPORT Work Session Item 6 Date: June 2, 2008 To: City Council From: Rick DeGardner Re: Right -of -Way Ordinance Background At the May 5 work session, the Council directed staff to create a Right -of -Way Ordinance. Mr. James Strommen, attorney with Kennedy and Graven, has prepared the proposed Right -of -Way Ordinance for Council consideration. Requested Council Direction Staff is requesting direction from the Council as to any desired changes to the Right -of- Way Ordinance and whether the ordinance can be placed on the June 9 Council agenda for a first reading. Attachments 1. Proposed Right -of -Way Ordinance 1 CHAPTER . ADMINISTRATION AND REGULATION PUBLIC RIGHT -OF -WAY 41, SECTION .01 Election to Manage the Public Right -of -Way. To provide for the health, safety, and welfare of its citizens, and to ensure the integrity of its streets and the appropriate use of the rights -of -way, the city strives to keep its rights -of -way in a state of good repair and free from unnecessary encumbrances. Pursuant to the authority granted to the city under state and federal statutory, administrative and common law, the city hereby elects pursuant Minn. Stat.237.163 subd.2(b), to manage rights -of -way within its jurisdiction. .02 Definitions. The following definitions apply in this chapter of this code. References hereafter to "sections" are, unless otherwise specified, references to sections in this chapter. Defined terms remain defined terms whether or not capitalized. Abandoned Facility means a facility no longer in service or physically disconnected from a portion of the operating facility, or from any other facility, that is in use or still carries service. A facility is not abandoned unless declared so by the right -of -way user. Applicant means any person requesting permission to excavate or obstruct a right -of -way. City means the city of Lino Lakes, Minnesota. For purposes of section , "city" means its elected officials, officers, employees and agents. Commission means the State Public Utilities Commission. Congested Right -of -Way means a crowded condition in the subsurface of the public right -of -way that occurs when the maximum lateral spacing between existing underground facilities does not allow for construction of new underground facilities without using hand digging to expose the existing lateral facilities in conformance with Minnesota Statutes, section 216D.04, Subdivision 3, over a continuous length in excess of 500 feet. Chapter 17 1 • Degradation means a decrease in the useful life of the right -of- way caused by excavation in or disturbance of the right -of -way, resulting in the need to reconstruct such right -of -way earlier than would be required if the excavation or disturbance did not occur. Degradation Cost subject to Minnesota Rules 7819.110 means the cost to achieve a level of restoration as determined by the city at the time the permit is issued, not to exceed the maximum restoration shown in plates 1 to 13, set forth in Minnesota Rules parts 7819.9900 to 7819.9950. Degradation Fee means the estimated fee established at the time of permitting by the city to recover costs associated with the decrease in the useful life of the right -of -way caused by the excavation, and which equals the degradation cost. city Inspector means any person authorized by the city to carry out inspections related to the provisions of this chapter. Delay Penalty is the penalty imposed as a result of unreasonable delays in right -of -way excavation, obstruction, patching, or restoration as established by permit. Emergency means a condition that (1) poses a danger to life or health, or of a significant loss of property; or (2) requires immediate repair or replacement of facilities in order to restore service to a customer. Equipment means any tangible asset used to install, repair, or maintain facilities in any right -of -way. Excavate means to dig into or in any way remove or physically disturb or penetrate any part of a right -of -way. Excavation Permit means the permit, which, pursuant to this chapter, must be obtained before a person may excavate in a right -of -way. An excavation permit allows the holder to excavate that part of the right -of -way described in such permit. Excavation Permit Fee means money paid to the city by an applicant to cover costs as provided in Section "Facility or Facilities" means any tangible asset in the right - of -way required to provide Utility Service. Chapter 17 2 Hole means an excavation in the right -of -way, with the excavation having a length less than the width of the pavement. "Management Costs" means the actual costs the city incurs in managing its rights -of -Way, including such costs, if incurred, as those associated with registering applicants; issuing, processing, and verifying right -of -way permit applications; inspecting job sites and restoration projects; maintaining, supporting, protecting, or moving user facilities during right - of -way work; determining the adequacy of right -of -way restoration; restoring work inadequately performed after providing notice and the opportunity to correct the work; and revoking right -of -way permits. Management costs do not include payment by a telecommunications right -of -way User for the use of the right -of -way, the fees and cost of litigation relating to the interpretation of Minnesota Session Laws 1997, Chapter 123; Minnesota Statutes Sections 237.162 or 237.163 or any ordinance enacted under those sections, or the city fees and costs related to appeals taken pursuant to Section of this chapter. "Obstruct" means to place any tangible in a right -of -way so as to hinder free and open passage over that or any part of the right -of -way. Obstruction Permit means the permit which, pursuant to this chapter, must be obtained before a person may obstruct a right - of -way, allowing the holder to hinder free and open passage over the specified portion of that right -of -way, for the duration specified therein. Obstruction Permit Fee means money paid to the city by a permittee to cover costs as provided in Section Patch or Patching means a method of pavement replacement that is temporary in nature. A patch consists of (1) the compaction of the sub -base and aggregate base and (2) the replacement, in kind, of the existing pavement for a minimum of two feet beyond the edges of the excavation in all directions. A patch is considered full restoration only when the pavement is included in the city's five -year project plan. Pavement means any type of improved surface that is within the public right -of -way and that is paved or otherwise constructed with bituminous, concrete, aggregate, or gravel. Permit has the meaning given "right -of -way permit" in Minnesota Statutes, Section 237.162 Chapter 17 3 • • • Permittee means any person to whom a permit to excavate or obstruct a right -of -way has been granted by the city under this chapter. Person means an individual or entity subject to the laws and rules of this state, however organized, whether public or private, whether domestic or foreign, whether for profit or non- profit, and whether natural, corporate, or political. "Public right -of -Way" means the area on, below, or above a public roadway, highway, street, cart -way, bicycle lane and public sidewalk in which the city has an interest, including other dedicated rights -of -way for travel purposes and utility easements of the city. A right -of -way does not include the airwaves above a right -of -way with regard to cellular or other non -wire telecommunications or broadcast service. "Restore or Restoration" means the process by which an excavated right -of -way and surrounding area, including pavement and foundation, is returned to the same condition and life expectancy that existed before excavation. Restoration Cost means the amount of money paid to the city by a permittee to achieve the level of restoration according to plates 1 to 13 of Minnesota Public Utilities Commission rules. "Right -of -Way Permit" means either the excavation permit or the obstruction permit, or both, depending on the context, required by this chapter. "Right -of -Way User" means (1) a telecommunications right -of -way user as defined by Minnesota Statutes, section 237.162, subd.4; or (2) a person owning or controlling a facility in the right - of -way that is used or intended to be used for providing utility service, and who has a right under law, franchise, or ordinance to use the public- right -of -way. "Service Lateral" means an underground facility that is used to transmit, distribute, or furnish gas, electricity, communications, or water from a common source to an end -use customer. A service lateral is also an underground facility that is used in the removal of wastewater from a customer's premises. Chapter 17 4 Service or Utility Service includes (1) those services provided by a public utility as defined in Minn. Stat. 216B.02, subds. 4 and 6; (2) services of a telecommunications right -of -way user, including transporting of voice or data information; (3) services of a cable communications systems as defined in Minn. Stat. Chapter 238; (4) natural gas or electric energy or telecommunications services provided by the city; (5) services provided by a cooperative electric association organized under Minn. Stat., Chapter 308A; and (6) water, sewer, steam, cooling, or heating services. Supplementary Application means an application made to excavate or obstruct more of the right -of -way than allowed in, or to extend, a permit that had already been issued. Temporary Surface means the compaction of sub -base and aggregate base and replacement, in kind, of the existing pavement only to the edges of the excavation. It is temporary in nature except when the replacement is of pavement included in the city's capital improvement plan, and is scheduled for completion within two (2) years, in which case it is considered full restoration. • "Trench" means an excavation in the pavement, with the • excavation having a length equal to or greater than the width of the pavement. "Telecommunication Right -of -Way User" means a person owning or controlling a facility in the right -of -way, or seeking to own or control a facility in the right- of- way,that is used or is intended to be used for transporting telecommunication or other voice or data information. For purposes of this chapter, a cable communication system defined and regulated under Minn. Stat. Chap. 238, and telecommunications activities related to providing natural gas or electric energy services whether provided by a public utility as defined in Minn. Stat. Sec. 216B.02, a municipality, a municipal gas or power agency organized under Minn. Stat. Chaps. 453 and 453A, or a cooperative electric association organized under Minn. Stat. Chap. 308A are not telecommunications right -of -way users for purposes of this chapter. .03 Permit Requirement. Subd. 1 Permit Required. Except as otherwise provided in this code, no person may obstruct or excavate any right -of -way, including county roads or state highways with the city, without first having obtained the appropriate permit from the city. Chapter 17 5 • • • (a) Excavation Permit. An excavation permit is required to excavate that part of the right -of -way described in such permit and to hinder free and open passage over the specified portion of the right -of -way by placing Facilities described therein, to the extent and for the duration specified therein. (b) Obstruction Permit. An obstruction permit is required to hinder free and open passage over the specified portion of right -of -way by placing equipment described therein on the right -of -way, to the extent and for the duration specified therein. An obstruction permit is not required if a person already possesses a valid excavation permit for the same project. Subd. 2 Permit Extensions. No person may excavate or obstruct the right -of -way beyond the date or dates specified in the permit unless such person (i) makes a supplementary application for another right -of -way permit before the expiration of the initial permit, and (ii) a new permit or permit extension is granted. Subd. 3 Delay Penalty. In accordance with Minnesota Rule 7819.1000, Subd. 3 and notwithstanding Subd. 2 of this Section, the city shall establish and impose a delay penalty for unreasonable delays in right -of -way excavation, obstruction, patching, or restoration. The delay penalty shall be established from time to time by city Council resolution. Subd. 4 Security. A Construction Performance Bond in an amount determined by the city shall be required from each applicant. A surety bond shall be from a corporate surety authorized to do business in the State. Security required pursuant to this subdivision shall require that the holder will perform the work in accordance with this Section and applicable permits, and regulations, will pay to the city any costs incurred by the city in performing work pursuant to this Section; and will indemnify and save the city and its officers, agents and employees harmless pursuant to the city code. The Construction Performance Bond shall be released by the city upon completion of the work and compliance with all conditions imposed by the permit. For permits allowing excavations within public right -of -way, the .Construction Performance Bond shall be held for a period of 24 months to guaranty the adequacy of all restoration work. Chapter 17 6 Subd. 5. Permit Display. Permits issued under this Section shall be conspicuously displayed or otherwise available at all times at the indicated work site and shall be available for inspection by the city. Subd. 6 County or State Rights -of -Way. City permits issued for work in county roads or state highways as defined by Minnesota law shall relate to the city's interest in the right - of -way under Minnesota Statutes, Section 237.162 subd. 3. The permittee shall obtain all other permits required by state, county, or federal agencies. Subd. 7 Exceptions. Nothing in this Section shall be construed to repeal or amend the provisions of a city ordinance establishing the rights of and limitations placed on persons to plant or maintain boulevard plantings or gardens in the area of the right -of -way between their property and the street curb. Persons carrying out or requesting the following work shall not be deemed to use or occupy the right -of -way within the meaning of this Section, and shall not be governed by this Section. Such persons are or may be governed by other city Code sections, including but not limited to, those noted below. A. Persons planting or maintaining vegetation in the boulevard, Sections and B. Persons installing driveways, sidewalks, curb and gutter, or parking lots, Section subd. and C. Persons erecting fences over drainage or utility easements, Subsection subd. and Section D. Persons engaged in snow removal activities, Section E. Persons installing street furnishings, mail boxes, bus stop benches and shelters, Subsection subd. F. Persons installing vending machines, Section G. Persons installing irrigation systems Chapter 17 7 • • • • • Section H. Persons installing pet containment systems, Section I. Persons installing water or sewer service lines, Section .04 Permit Applications. Application for a permit shall contain, and will be considered complete only upon compliance with the requirements of the following provisions: (a) Submission of a completed permit application form, including al required attachments, scaled drawings showing the location and area of the proposed project and the location of all known existing and proposed facilities, and the following information: (1) Each applicant's name, Gopher One -Call registration certificate number, address and email address if applicable, and telephone and facsimile numbers. (2) The name, address, and email address, if applicable, and telephone, and facsimile numbers of a local representative. The local representative or designee shall be available at all times. Current information regarding how to contact the local representative in an emergency shall be provided at the time of registration. (3) A certificate of insurance or self - insurance: (a)Verifying that an insurance policy has been issued to the permittee by an insurance company licensed to do business in the State of Minnesota, or a form of self - insurance acceptable to the city; (b)Verifying that the permittee is insured against claims for personal injury, including death, as well as claims for property damage arising out of the (i) use and occupancy of the right -of -way by the permittee, its officers, agents, employees and permittees, and (ii) placement and use of facilities and equipment in the right -of -way by the permittee, its officers, Chapter 17 8 agents, employees and permittees, including, but not limited to, protection against liability arising from completed operations, damage of underground facilities and collapse of property; (c) Naming the city as an additional insured as to whom the coverages required herein are in force and applicable and for whom defense will be provided as to all such coverages; d) Requiring that the city be notified thirty(30) days in advance of cancellation of the policy or material modification of a coverage term; (d) Indicating comprehensive liability coverage, automobile liability coverage, workers compensation and umbrella coverage established by the city in amounts sufficient to protect the city and the public and to carry out the purposes and policies of this chapter. (4) The city may require a copy of the actual insurance policies. (5) If the person is a corporation, a copy of the certificate required to be filed under Minn. Stat. 300.06 as recorded and certified to by the Secretary of State. (6) A copy of the person's order granting a certificate of authority from the Minnesota Public Utilities Commission or other applicable state or federal agency, where the person is lawfully required to have such certificate from said commission or other state or federal agency. (b) Payment of money due the city for: (1) Permit fees, estimated restoration costs and other management costs. (2) Prior obstructions or excavation. (3) Any undisputed loss, damage, or expense suffered by the city because of applicant's prior excavations or obstructions of the rights -of -way or any emergency actions taken by the city. (4) Franchise fees or other charges, if applicable. .05 Issuance of Permit; Conditions. Chapter 17 9 • • • Subd. 1 Permit Issuance. If the Applicant has satisfied the requirements of this chapter, the city shall issue a permit. Subd. 2 Conditions. The city may impose reasonable conditions upon the issuance of the permit and the performance of the applicant thereunder to protect the health, safety, and welfare or when necessary to protect the right -of -way and its current use. .06 Permit Fees. Subd. 1 Excavation Permit Fee. The city shall establish an Excavation permit fee in an amount sufficient to recover the following costs: (a) The city management costs. (b) Degradation costs, if applicable. Subd. 2 Obstruction Permit Fee. The city shall establish the Obstruction Permit Fee and shall be an amount sufficient to recover the city management costs. Subd. 3 Payment of Permit Fees. No excavation permit or obstruction permit shall be issued without payment of excavation or obstruction permit fees. The city may allow applicant to pay such fees within thirty (30) days of billing. Subd. 4 Non refundable. Permit fees that were paid for a permit that the city has revoked for a breach as stated in Section 1.14 are not refundable. Subd. 5 Application to franchises. Unless otherwise agreed to in a franchise, management costs may be charged separately from and in addition to the franchise fees imposed on a right -of -way user in the franchise. Subd. 6 All permit fees shall be established consistent with the provisions of Minnesota Rule 7819.1000. .07 Right -of -Way Patching and Restoration. Subd. 1 Timing. The work to be done under the excavation permit, and the patching and restoration of the right -of -way as required herein, must be completed within the dates specified in the permit, increased by as many days as work could not be done Chapter 17 10 because of circumstances beyond the control of the permittee or when work was prohibited as unseasonal or unreasonable under Section Subd. 2 Patch and Restoration. Permittee shall patch its own work. The city may choose either to have the permittee restore the right -of -way or to restore the right -of -way itself. (a) city Restoration. If the city restores the right -of- way, permittee shall pay the costs thereof within thirty (30) days of billing. If following such restoration, the pavement settles due to permittee's improper backfilling, the permittee shall pay to the city, within thirty (30) days of billing, all costs associated with having to correct the defective work. (b) Permittee Restoration. If the permittee restores the right -of -way itself, it shall at the time of application for an excavation permit post a construction performance bond in accordance with the provisions of Minnesota Rules 7819.3000. (c) Degradation Fee in Lieu of Restoration. In lieu of right -of -way restoration, a right -of -way user may elect to pay a degradation fee. However, the right -of -way user shall remain responsible for patching and the degradation fee shall not include the cost to accomplish these responsibilities. Subd. 3 Standards. The permittee shall perform patching and restoration according to the standards and with the materials specified by the city and shall comply with Minnesota Rule 7819.1100. Subd. 4 Duty to Correct Defects. The permittee shall correct defects in patching, or restoration performed by permittee or its agents. Permittee upon notification from the city, shall correct all restoration work to the extent necessary, using the method required by the city. Said work shall be completed within five (5) calendar days of the receipt of the notice from the city, not including days during which work cannot be done because of circumstances constituting force Majeure or days when work is prohibited as unseasonal or unreasonable under Section Subd. 5 Failure to Restore. If the permittee fails to Chapter 17 11 • • • • restore the right -of -way in the manner and to the condition required by the city, or fails to satisfactorily and timely complete all restoration required by the city, the city at its option may do such work. In that event the permittee shall pay to the city, within thirty (30) days of billing, the cost of restoring the right -of -way. If permittee fails to pay as required, in addition to other remedies provided by law, the city may exercise its rights under the construction performance bond. _.08 Supplementary Applications. Subd. 1 Limitation on Area. A right -of -way permit is valid only for the area of the right -of -way specified in the permit. No permittee may do any work outside the area specified in the permit, except as provided herein. Any permittee which determines that an area greater than that specified in their permit must be obstructed or excavated must before working in that greater area (i) make application for a permit extension and pay any additional fees required thereby, and (ii) be granted a new permit or permit extension. Subd. 2 Limitation on Dates. A right -of -way permit is valid only for the dates specified in the permit. No permittee may begin its work before the permit start date or, except as provided herein, continue working after the end date. If a permittee does not finish the work by the permit end date, it must apply for a new permit for the additional time it needs, and receive the new permit or an extension of the old permit before working after the end date of the previous permit. This supplementary application must be submitted before the permit end date. .09 Denial of Permit. The city may deny a permit for failure to meet the requirements and conditions of this chapter or if the city determines that the denial is necessary to protect the health, safety, and welfare or when necessary to protect the right -of -way and its current use. .10 Installation Requirements. The excavation, backfilling, patching, and restoration, and all other work performed in the right -of -way shall be done in conformance with Minnesota Rules 7819.1100 and other applicable local requirements, in so far as they are not inconsistent with the Minnesota Statutes Sections 237.162 and 237.163. Chapter 17 12 .11 Trenchless Excavation. As a condition of all applicable permits, permittees employing trenchless excavation methods, including but not limited to Horizontal Directional Drilling, shall follow all requirements set forth in Minnesota Statutes, Chapter 216D and Minnesota Rules Chapter 7560, and shall require potholing or open cutting over existing underground utilities before excavating as determined by the city. .12 Inspection. Subd. 1. Notice of Completion. When the work under any Permit hereunder is completed, the permittee shall furnish a Completion Certificate in accordance with Minnesota Rules 7819.1300. Subd. 2. Site Inspection. Permittee shall make the work Site available to city personnel and to all others as authorized by law for inspection at all reasonable times during the execution of and upon completion of the work. Subd. 3. Authority of city. (a) At the time of inspection the city may order the immediate cessation of any work which poses a serious threat to the life, health, safety, or well being of the public. (b) The city may issue an order to the permittee for Any work, which does not conform to the terms of the permit or other applicable standards, conditions, or codes. The order shall state that failure to correct the violation will be cause for revocation of the permit. Within ten (10) days after issuance of the order, the permittee shall present proof to the city that the violation has been corrected. If such proof has not been presented within the required time, the city may revoke the permit pursuant to Sec. _.13 Standards During Construction or Installation. The permit holder shall comply with the following standards when engaging in the work: A. Observe and comply with all laws, rules and regulations of the State. Chapter 17 13 • • • • • B. Conduct the operation and perform the work in a manner as to ensure the least obstruction and interference to traffic. C. Take adequate precautions to ensure the safety of the general public and those who require access to abutting property. D. If required by the city, notify adjoining property owners prior to the commencement of work which may disrupt the use of and access to such adjoining properties. E. In all cases where construction work interferes with the normal use of the construction area, provide for closing the construction area to traffic or to afford restricted use of the area and comply with MUTCD traffic safety signing requirements. F. Exercise precaution at all times for the protection of persons, including employees and property. G. Protect and identify excavations and work operations with barricade flags, and if required, by flagmen in the daytime, and by warning lights at night. H. Provide proper trench protection as required by O.S.H.A when necessary and depending upon the type of soil, in order to prevent cave - ins endangering life or tending to enlarge the excavation. I. Protect the root growth of trees and shrubbery. J. Installation of pipe (utility conductors) under concrete, or bituminous pavements shall be done by jacking, auguring or tunneling as directed by the city unless otherwise authorized. K. All backfilling must be placed in six -inch layers at optimum moisture and compacted with the objective of attaining 100 percent Chapter 17 14 of standard proctor density. Compaction shall be accomplished with hand, pneumatic or vibrating compacters as appropriate. L. No metal - tracked or other lugged equipment is allowed to be driven on the public right - of -way. .14 Work Done Without a Permit. Subd. 1 Emergency Situations. Each person with facilities in the right -of -way shall immediately notify the city of any event regarding its facilities which it considers to be an emergency. The owner of the facilities may proceed to take whatever actions are necessary to respond to the emergency. Within two business days after the occurrence of the emergency the owner shall apply for the necessary permits, pay the fees associated therewith and fulfill the rest of the requirements necessary to bring itself into compliance with this chapter for the actions it took in response to the Emergency. If the city becomes aware of an emergency regarding facilities, the city will attempt to contact the local representative of each facility owner affected, or potentially affected, by the emergency. In any event, the city may take whatever action it deems necessary to respond to the emergency, the cost of which shall be borne by the person whose facilities occasioned the emergency. Subd. 2 Non - Emergency Situations. Except in an emergency, any person who, without first having obtained the necessary permit, obstructs or excavates a right -of -way must subsequently obtain a permit, and as a penalty pay double the normal fee for said permit, pay double all the other fees required by this code, deposit with the city the fees necessary to correct any damage to the right -of -way and comply with all of the requirements of this chapter. .15 Supplementary Notifications. If the obstruction or excavation of the right -of -way begins later or ends sooner than the date given on the permit, permittee shall notify the city of the accurate information as soon as this information is known. .16 Revocation of Permits. Subd. 1 Substantial Breach. The city reserves its right, Chapter 17 15 • as provided herein, to revoke any right -of -way permit, without a fee refund, if there is a substantial breach of the terms and conditions of any statute, ordinance, rule or regulation, or any material condition of the permit. A substantial breach by permittee shall include, but shall not be limited to, the following: (a) The violation of any material provision of the right of -way permit; (b) An evasion or attempt to evade any material provision of the right -of -way permit, or the perpetration or attempt to perpetrate any fraud or deceit upon the city or its citizens. (c) Any material misrepresentation of fact in the application for a right -of -way permit; (d) The failure to complete the work in a timely manner; unless a permit extension is obtained or unless the failure to complete work is due to reasons beyond the permittees control; or (e) The failure to correct, in a timely manner, work that does not conform to a condition indicated on an order issued pursuant to Sec. Subd. 2 Written Notice of Breach. If the city determines that the permittee has committed a substantial breach of a term or condition of any statute, ordinance, rule, regulation or any condition of the permit the city shall make a written demand upon the permittee to remedy such violation. The demand shall state that continued violations may be cause for revocation of the permit. A substantial breach, as stated above, will allow the city, at its discretion, to place additional or revised conditions on the permit to mitigate and remedy the breach. Subd. 3 Response to Notice of Breach. Within twenty -four (24) hours of receiving notification of the breach, permittee shall provide the city with a plan, acceptable to the city, that will cure the breach. Permittee's failure to so contact the city, or the permittee's failure to submit an acceptable plan, or permittee's failure to reasonably implement the approved plan, shall be cause for immediate revocation of the permit. • Subd. 4 Reimbursement of city Costs. If a permit is revoked, the permittee shall also reimburse the city for the Chapter 17 16 city's reasonable costs, including restoration costs and the costs of collection and reasonable attorney's fees incurred in connection with such revocation. .17 Mapping Data. Subd. 1. Information Required. Each permittee shall provide mapping information required by the city in accordance with Minnesota Rules 7819.4000 and 7819.4100. Within ninety (90) days following completion of any work pursuant to a permit, the permittee shall provide the director accurate maps and drawings certifying the "as- built" location of all equipment installed, owed, and maintained by the permittee. Such maps and drawings shall include the horizontal and vertical location of all facilities and equipment and shall be provided consistent with the city's electronic mapping system, when practical or as a condition imposed by the director. Failure to provide maps and drawings pursuant tot his subsection shall be grounds for revoking the permit holder's registration. Subd. 2. Service Laterals. All permits issued for the installation or repair of service laterals, other than minor repairs as defined in Minnesota Rules 7560.0150 subpart 2 shall require the permittee's use of appropriate means of establishing the horizontal locations of installed service laterals, and the service lateral vertical locations in those cases where the director reasonably requires it. Permittees or their subcontractors shall submit to the director evidence satisfactory to the director of the installed service lateral locations. Compliance with this subdivision 2 and with applicable Gopher State One Call law and Minnesota Rules governing service laterals install after December 31, 2007, shall be a condition of any city approval necessary for 1) payments to contractors working on a public improvement project including those under Minnesota Statutes, Chapter 429 and 2) city approval of performance under development agreements or other subdivision or site plan approval under Minnesota Statutes, Chapter 462. The director shall reasonably determine the appropriate method of providing such information to the city. Failure to provide prompt and accurate information on the service laterals installed may result in the revocation of the permit issued for the work or for future permits to the offending permittee or its subcontractors. .18 Location and Relocation of Facilities. Chapter 17 17 • • • Subd. 1 Placement, location, and relocation of facilities must comply with the act, with other applicable law, and with Minnesota Rules 7819.3100, 7819.5000 and 7819.5100, to the extent the rules do not limit authority otherwise available to cities. Subd. 2 Corridors. The city may assign specific corridors within the right -of -way, or any particular segment thereof as may be necessary for each type of facility that exists, or, pursuant to current technology, that the city reasonably expects will someday be located within the right -of -way. All excavation, obstruction, or other permits issued by the city involving the installation or replacement of facilities shall designate the proper corridor for the facilities at issue. Subd. 3 Limitation of Space. To protect health, safety, and welfare or when necessary to protect the right -of -way and its current use, the city shall have the power to prohibit or city shall strive, to the extent possible, to accommodate all existing and potential users of the right -of -way, but shall be guided primarily by considerations of the public interest, the public's needs for the particular Utility Service, the condition of the right -of -way, the time of year with respect to essential utilities, the protection of existing facilities in the right - of -way, and future city plans for public improvements and development projects which have been determined to be in the public interest. .19 Damage to Other Facilities. When the city does work in the right -of -way and finds it necessary to maintain, support, or move facilities to protect it, the city shall notify the local representative as early as is reasonably possible and direct placement of facilities. The costs associated therewith will be billed to that facility owner and must be paid within thirty (30) days from the date of billing. Each facility owner shall be responsible for the cost of repairing any facilities in the right -of -way, which it or its facilities damage. Each facility owner shall be responsible for the cost of repairing any damage tip the facilities of another caused during the city's response to an emergency occasioned by that owner's facilities. .20 Right -of -Way Vacation. Subd. 1 Reservation of Right. If the city vacates a right -of -way which contains facilities, the facility owner's rights in the vacated right -of -way are governed by Minnesota Rules 7819.3100 subp. 2 and 7819.3200. Chapter 17 18 .21 Indemnification and Liability. By applying for and accepting a permit under this chapter, a permittee agrees to defend and indemnify the city in accordance with the provisions of Minnesota Rule 7819.1250. .22 Abandoned Facilities. Subd. 3 Removal of Abandoned Facilities. Any person who has abandoned facilities in any right -of -way shall remove them from that right -of -way if required in conjunction with other right -of -way repair, excavation, or construction, unless this requirement is waived by the city. _.23 Appeal. (a) A right -of -way user that: (1) has been denied a permit; (2) has had permit revoked; or (3) believes that the fees imposed are invalid, may have the denial, revocation, or fee imposition reviewed, upon written request, by the city Council. The city Council shall act on a timely written request at its next regularly scheduled meeting. A decision by the city Council affirming the denial, revocation, or fee imposition will be in writing and supported by written findings establishing the reasonableness of the decision. _.24 Reservation of Regulatory and Police Powers. A permittee's rights are subject to the regulatory and police powers of the city to adopt and enforce general ordinances necessary to protect the health, safety, and welfare of the public. Chapter 17 19 • • Right of Way Fees And Charges Excavation Permit Fees Hole - $125 (includes administration, plan review, inspection, testing, and mapping) Emergency Hole - $55 (includes administration and inspection) Trench - $70 per 100 lineal feet plus hole fee (includes administration, plan review, inspection, testing, and mapping) Obstruction Permit Fee - $50 plus $.05 per lineal foot (includes administration, recording, review, inspection) Permit Extension Fee - $55 (includes administration, recording, review) Delay Penalty - $60 for up to 3 days of non - completion and non -prior notice before specified completion date. After 3 days, an additional charge of $10 per day will be levied. Degradation Fee Formula This formula covers degradation for depreciation caused by intrusion into the right -of -way. The depreciation applies to the original surface of the right -of -way and to the overlays and seal -coats applied to the surface. The formula includes life expectancy schedules for each and has an estimated cost per square yard based on the quality of the right -of -way surface required for different levels of traffic. This formula creates a degradation fee which is determined by the cost per square yard for street, overlay, and seal -coat, multiplied by the depreciation schedule, multiplied by the area of the street patch. Degradation Fee: (Cost per square yard for street, overlay, and seal -coat x Depreciation Schedule Rates) x area of street patch = Degradation Fee. Chapter 17 20 • • WS — Item 7 WORK SESSION STAFF REPORT Work Session Item 7 Date: June 2, 2008 To: City Council From: Gordon Heitke Re: Xcel Electricity /Gas Franchise Agreements Background As first discussed at the April 7 work session, the 1988 franchise agreements with Xcel Energy will be expiring in June. At the May 5 work session, the Council directed staff to proceed with having Mr. James Strommen, attorney with Kennedy and Graven, draft new Xcel Energy agreements, incorporating the ability of establishing franchise fees. Attached are draft electric and gas franchise ordinances, as proposed by Xcel Energy, with proposed revisions by Mr. Strommen. Requested Council Direction Staff is requesting direction from the Council as to any desired changes to the franchise ordinances and or whether the ordinances can be placed on the June 9 Council agenda for a first reading. Attachments 1. Proposed Electric Franchise Ordinance 2. Proposed Gas Franchise Ordinance 1 • • ✓�„ GAS FRANCHISE ORDINANCE' ORDINANCE NO. CITY OF LINO LAKES, CHISAGO COUNTY, MINNESOTA AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERCY ITS SUCCESSORS AND ASSIGNS, INA NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN FACILITIES AND EQUIPMENT FOR THE TRANSPORTATION, DISTRIBUTION, MANUFACTURE AND SALE OF GAS ENERGY FOR PUBLIC AND PRIVATE USE AND TO USE THE PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITY OF LINO LAKES, MINNESOTA, CITY AND ITS INHABITANTS AND OTHERS AND TRANSMITTING CAS INTO AND THROUCH THE CITY AND TO USE THE PUBLIC CROUNDS AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSESFOR SUCH PURPOSE; AND, PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF. THE CITY COUNCIL OF THE CITY OF LINO LAKES, CHISAGO COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of Lino Lakes, County of Chisago, State of Minnesota. 1.2 City Utility System. Facilities used for providing non energy related public utility service owned or operated by City or agency thereof, including sewer and, storm sewer, water service, street lighting and traffic signals, but excluding facilities for providing heating, lighting} or other forms of energy. 1.3 Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all; or part of the authority to regulate Gasgas retail rates now vested in the Minnesota Public Utilities Commission. Franchise for Cities. 333271v1 JMS KG400 -3 1 1.4 Company. Northern States Power Company, a Minnesota corporation, d/434 Xcel Energy its successors and assigns including all successors or assigns that own or operate any part or parts of the Gas Facilities subject to this franchise. 1.5 Gas. "Gas" as used herein shall be held to include natural gas, manufactured gas, or other form of gaseous energy. 1.6 Gas Facilities. Pipes, mains, regulators, and other facilities owner Gas transmission and distribution pipes, lines, ducts, fixtures, and all necessary equipment and appurtenances owned or operated by the Company for the purpose of providing gas �ervicoenergy for public or private use. 1.7 Notice. A written noticcwriting served by eneany party or parties on theany other party referencing one or more provisions of this Ordinance.or parties. Notice to Company shall be mailed to the General Counsel, 41- 4Legal Services, Suite 3000, 800 Nicollet Mall, Floor, Minneapolis, MN 55401. 55402. Notice to the City shall be mailed to the City Administrator, 600 Town Center Parkway, Lino Lakes, MN 55014. Either Any party may change its respective address for the purpose of this Ordinance by written notice to the other pafty arties. 1.8 Public Ground. Land owned or otherwise controlled by the City for park, open space or similar public purpose, which is held for use in common by the public. 1.9 Public Way. Any street, alley, walkway or other public Public right -of -way within the City.— as defined in Minn. Stat. §237.162 subd. 3. SECTION 2. ADOPTION OF. FRANCHISE. 2.1 Grant of Franchise. City hereby grants Company, for a period of 20 years from the date this Ordinance is passed and approved by the City, the right to transmit and furnish Gas energy for light, heat, power and other purposesimport, manufacture, distribute and sell gas for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. For these purposes, Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and across the Public Ways and Public Ways of CityGrounds, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject; however, to such reasonable re lionaregulations as may be imposed by the City pursuant to ordinance or permit requirements and to the further provisions of this franchise agreement. 2.2 Effective Date; Written Acceptance. This franchisees shall be in force and effect from and after the passage of this Ordinance, its acceptance by Company, and its publication as required by law. The City by Council resolution may revoke this franchise agreement if and its acceptance by Company. If Company does not file a written acceptance with the City within 90 days after publication60 days after the date the City Council adopts this Ordinance, the City Council by resolution may revoke this franchise or seek its enforcement in a competent jurisdiction. 333271v1 JMS KG400-3 2 • • 2.32.3. Service and, Rates - -, and Area. The service to be provided and the rates to be charged by Company for Gas= service in City are subject to the jurisdiction of the Commission. 2.12.4. Publication Expense._he Company shall pay the expense of publication of this Ordinance will be paid by City and reimbursed to City by Company. 2.5 2.5. Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within thirty (30) days of the date of written noticcNotice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or 'ther party may take any other action permitted by law. 2.6. Continuation of Franchise. If the City and the Company are unable to agree on the terms of a new franchise by the time this franchise expires, this franchise will remain in effect until a new franchise is agreed upon, or until 90 days after the City or the Company serves written Notice to the other party of its intention to allow the franchise to expire. However, in no event shall this franchise continue for more than one year after expiration of the -year term set forth in Section 2.1. SECTION 3. LOCATION, OTHER REGULATIONS. 3.1 3.1. Location of Facilities. Gas Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt or interfere with normal operation of any City Utility System previously installed therein. Gas Facilities shallmay be located on Public Grounds as determined by the City. Company's construction, reconstruction, operation, repair, maintenance ate, location and relocation of Gas Facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the City consistent with authority granted the Ci to mana•e its Public Wa s and Public rounds under stat• law to the extent not inconsistent with the termsa specific term of this franchise agreement __Company may abandon underground gas facilitiesGas Facilities in place, provided, at the City "s request, Company will remove abandoned metal pipeor concrete encased conduit interfering with a City improvement project, but only at its own expense to the extent such metal pipe abandoned Facilities are is uncovered by excavation as part of the City" s improvement project. 3.2 Field Locations. Company shall provide field locations for its underground Gas Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D. 333271v1 .1MS KG400 -3 3.3 Street Openings. Company shall not open or disturb the surface of any Public GeundlWay or Public Way Ground for any purpose without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee. Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. Company may, however, open and disturb the surface of any Public GreuWay or Public WayGround without permission from the City whcrea permit if (i) an emergency exists requiring the immediate repair of Gas Facilities —In such event and (ii) Company City as soon as practicable. Not later than the second working day thereafter, Company shall egives telephone, email or similar notice to the City before commencement of the emer • enc repair. Within two business days after commencing the repair. Company shall apply for any required permits and pay any required fees. 143.4. Restoration. After undertaking any work requiring the opening of any Public Ground or Public Way,Way, the Company shall restore the same, including paving and its foundation,Public Wa in accordance with Minnesota Rules _. art 7819.1100 and a i . licable City ordinances consistent with law. Company shall restore the Public Ground to as good a condition as formerly existed, and shall maintain any pavedthe surface in good condition for twe yearssix (6) months thereafter. —fie All work shall be completed as promptly as weather permits, and if Company shall not promptly perfoini and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground or Public Way in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration of the Public Ground at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section 3.4, but the3.4. 3.5 Performance Security. The City hereby waives any requirement, in the normal course of Company operations, for Company to post a construction performance bond, certificate of insurance, letter of credit or any other form of security or assurance that may be required; under a separate existing or future ordinance of the City, of a person or entity obtaining the City "s permission to install, replace or maintain facilities in a Public Way., or the Public Ground. Notwithstandin ' the fore ' oin the Ci reserves the ri ' ht to re ' uire a performance bond for new installation, replacement, or repairs. when the Company's com i letion of its work is re s uired in order for the Ci to • roceed on a timel basis with a public improvement project. 3.6. Shared Use of Poles. Company shall make space available on its poles or towers for City fire, water utility, police or other City facilities whenever such use will not interfere with the use of such poles or towers by Company, by another electric utility, b a telephone utili or by any cable television company or other form of communication com . an . In addition the Ci shall • a for an added cost incurred b Com a an because of such use by City. 333271v1 JMS KG400 -3 4 • • • 3.5 3.7 Avoid Damage to Gas Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Gas Facilities while performing any activity. The Company must take reasonable measures to prevent the Gas Facilities from causing damage to persons or property. The Company must take reasonable measures to protect the Gas Facilities from damage that could be inflicted on the Facilities by persons, proper - or the elements. The om . an must take protective measures when the City performs work near the Gas Facilities, if given reasonable notice by the City of such work prior to its commencement. 3.6 3.8. Notice of Improvements.- to Streets. The City mttstwill give Company reasonable rewritten Notice of plans for improvements to Public Grounds or Public Ways where the City has reason to believe that Gas Facilities may affect or be affected by the improvement The notice m+tstwill contain: (i) the nature and character of the improvements, (ii) the Public Grounds and Public Ways upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Ground or _Public Way is involved, the information provided by the contractors regarding the order in which the work is intended to proceed. The notice mustwill be given to Company a sufficient length of time, considering seasonal working conditions, in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Gas. Facilities: that the Company deems necessary. 3.9. Mapping Information. The Company must promptly provide mapping information for any of its Gas Facilities in accordance with the requirements of Minnesota Rules Parts 7819.4000 and 7819.4100. SECTION 4. RELOCATIONS. 1.1 4.1. Relocation of Gas Facilities in Public Warms If the City determines to vacate a Public Way for a City improvement project, or at City's cost to grade, rcgradc, or change the line of any Public Way, or construct or reconstruct any City Utility System in any Public Way, it may order Company to relocate its Gas Facilities located therein if relocation is reasonably necessary to accomplish the City's proposed public improvement. Except as provided in Section 4.3, Company shall relocate its Gas Facilities at its own expense. The City shall give regrade, or change the line of any Public Way or to construct or reconstruct any City Utility required because of the extension of a City Utility System to a previously unserved area, Company may be required to make the subsequent relocation at its expense. Nothing in this Ordinance requires Company to relocate, remove, replace or reconstruct at its own expense its Gas Facilities where such relocation, removal, replacement or reconstruction is solely for the convenience of the City and is not reasonably necessary for the construction or reconstruction of a Public Way or City Utility System or other City improvementin Public Ways. The Company shall comply with Minnesota Rules, part 7819.3100 and applicable City police powers and ordinances consistent with law. 333271v1 JMS KG400 -3 4,2-4.2. Relocation of Gas Facilities in Public Ground.Grounds. City may require Company at Company's expense to relocate or remove its Gas Facilities from Public Ground upon a finding by City that the Gas Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground. Such relocation shall comply with city police powers and applicable ordinances consistent with and law. /1.3 4.3. Projects with Federal Funding. Relocation, removal, or rearrangement of any Company Gas Facilities made necessary because of the extension into or through City of a federally -aided highway project shall be governed by the provisions of Minnesota Statutes; Section 161.46, as supplemented or amended. It is understood that the right herein granted to Company is a valuable right. City shall not order Company to remove or relocate its Gar, redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non betterment Costs of such need not pay those portions of such for which reimbursement to it is not available Section 161.46. The City is obligated to pay Company only for those portions of its relocation costs for which Ci t has re eived f • d • ral f ndin s ecifi all all' ated fir relo ation costs in the amount requested by the Company. 4.4 No Waiver. The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right -of -way acquired by easement or prescriptive right before the applicable Public Ground or Public Way was established, or Company's rights under state or county permit. SECTION 5. with the proper construction, operation, repair and maintenance of Gas Facilities, provided that INDEMNIFICATION. X5.1. Indemnity of City. Company shall indemnifyeep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Gas Facilities located in the Public GroundsWays and Public Wa3s,Grounds. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. The City shall not be reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's determination. 333271v1 JMS KG400 -3 6 • • • • 6.2 5.2. Defense of City. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City and. The Company, in defending any action on behalf of the City shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. This franchise a • reement shall not be inter s reted to constitute a waiver i the Ci of any of its defenses of immuni or limitations on liabili under Minne ota Statutes Chapter 466. SECTION .7,-6. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. Except where required for a City improvement project, the vacation of case, however, shall City be liable to Company for failure to specifically preserve a right of way under Th Ci and the Com s an shall o 1 with Minneso a Rules 7:1'.3100 sub ' art 2 and 7819.3200 and applicable ordinances consistent with law. SECTION 7. ABANDONED FACILITIES. The Company shall comply with City ordinances, Minnesota Statutes, Section 160.29.216D.01 t se'. and Minnesota Rules Part 781'.3300 as the ma be amended from time to time. The Company shall maintain records describing the exact location of all abandoned and retired Facilities within the City, produce such records at the City's, request and com i ly with the location requirements of Section 216D.04 with respect to all Facilities, including abandoned and retired Facilities. SECTION 8. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 9. FRANCHISE FEE. 9.1. Form. During the term of the franchise hereby granted, and in addition to ermit fees bein • im s osed or that the Ci has a ri • ht to im . ose the i ma char • e the Com ' an a franchise fee. The fee ma Com s an for its operations within the Ci _ or ii a flat fee ' er customer based on metered service to retail customers within the City or on some other similar basis, or (iii) a fee based be i a rcenta•e of ross revenues re eived b the 333271v1 JMS KG400 -3 on units of ener ',y delivered to any class of retail customers within the corporate limits of the Ci The method of im i osin ' the franchise fee the i ercenta ' e of revenue rate or the flat rate based on metered service may differ for each customer class or combine the methods described in (i) - (iii) above in assessing the fee. The City shall seek to use a formula that provides a stable and predictable amount of fees, without niacin ' the Compan at a com . etitive disadvantage. If the Company claims that the City re a uired fee formula is discriminator or otherwise . laces the Com s an at a com . etitive disadvanta ' e the Com, an shall provide a formula that will produce a substantially similar fee amount to the Ci and reimburse the Ci 's reasonable fees and costs in reviewin ' and im • lementin the formula The Ci will attem t to accommodate the Com . an but is under no franchise obligation to adopt the Company- proposed franchise fee formula and each review will not delay the implementation of the City- imposed fee. 9.2. Separate Ordinance. The franchise fee shall be im . osed by se I arate ordinance dul ado s ted b the Ci Council which ordinance shall not be ado . ted until at least thir 30 da s after written notice enclosin such ro . osed ordinance has been served upon the Com. any. The fee shall become effective ten 10) da s after written notice enclosin • such ado . ted ordinance has been served u s on the Com an b certified mail. 9.3. Condition of Fee. The separate ordinance imposing the fee shall not be effective a ' ainst the Com i an unless it lawful) im i oses a fee of the same or substantial) similar amount on the sale of electric ener within the Ci su . i her rovided that franchise fee. as to such su lier the Ci has b an other electric ener the authori Unless otherwise a ' reed b the Com the Ci will franchise fee that exceed five 5 • ercent of the ross revenues derived b to not the re ' uire a im ose a Compan from operations within the City, provided, however that such limit will not anal if throu ' h dere ' ulation or other cause allowin customers to • urchase electrici from o i erations in the sources other than the Com . an the Com an 's City are reduced during the term of this franchise. ross revenues from 9.4. Collection of Fee. The franchise fee shall be i a able not less than a uarterl durin ' com s lete billin months of the s eriod for which a ment is to be made. The franchise fee formula ma be chap ' ed from time to time however the chan e shall meet the same notice re uirements and the fee ma Such fee shall not exceed any amount that the Company may le. ally char • e to its customers prior to pa ment to the Ci . Such fee is sub'ect to subse a uent reductions to account for uncollectibles and customer refunds incurred by the Company. The Company a to make available for ins . ection b the Ci at reasonable times .all records not be ch an ed more often than annuall rees necessary to audit the Company's determination of the franchise fee • avments. 9.5. Continuation of Franchise Fee. If this franchise expires and the City and the Compan are unable to agree upon terms of a new franchise, the franchise fee, if any being imposed by the City at the time this franchise expires will remain in effect until a new franchise is agreed upon. SECTION 10. PROVISIONS OF ORDINANCE. 333271v1 JMS KG400 -3 8 • • • • X10.1. Severability. Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part; and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 9.2 10.2. Limitation on Applicability. This Ordinance constitutes a franchise agreement between the City and Company as the only parties and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. SECTION X11. AMENDMENT : PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended to address a subject of concern and the other party will consider whether it agrees that the amendment is mutually appropriate. If an amendment is agreed upon, this. This Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 90 days after the date of final passage by the Cityby City council adoption of the amendatory ordinance. SECTION 1-1-12. PREVIOUS FRANCHISES SUPERSEDED. This franchise supersedes any previous Gas franchise granted to Company or its predecessor. Passed and approved: 200. Attest: City Clerk, Lino Lakes, Minnesota Date Published: 333271v1 JMS KG400 -3 Mayor of the City of Lino Lakes, Minnesota Document comparison done by DeltaView on Friday, May 16, 2008 9:02:46 AM Document 1 Powerpocs: / /DOCSOPEN /333280/1 Document 2 Powerpocs: / /DOCSOPEN /333271 /1 Rendering set K &G Standard Insertion Deletion Meved-frem Moved to Style change Format change Mewed -del e R Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Count Insertions 146 Deletions 122 Moved from 2 Moved to 2 Style change 0 Format changed 35 Total changes 307 • • • • • • ELECTRIC FRANCHISE ORDINANCE ORDINANCE NO. CITY OF LINO LAKES, CHISAGO COUNTY, MINNESOTA AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D /B /A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, PERMISSIONA NONEXCLUSIVE FRANCHISE, TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF LINO LAKES, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC GROU#DSWAYS AND PUBLIC WAYSGROUNDS OF THE CITY FOR SUCH PURPOSES. THE CITY COUNCIL OF THE CITY OF LINO LAKES, CHISAGO COUNTY, MINNESOTA, ORDAINS: SECTION 1.-1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of Lino Lakes, County of Chisago, State of Minnesota. 1.2 City Utility System. Facilities used for providing non energy related public utility service owned or operated by City or agency thereof, including sewer and, storm sewer, water service, street lighting and traffic signals, but excluding facilities for providing heating, lighting., or other forms of energy. 1.3 Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all; or part of the authority to regulate electric retail rates now vested in the Minnesota Public Utilities Commission. 1.4 Company. Northern States Power Company, a Minnesota corporation, d/b /a Xcel Energy, its successors and assigns including all successors or assignees that own or operate any part or parts of the Electric Facilities subject to this franchise. 1 This ordinance follows closely the League of Cities /Suburban Rate Authority Model Electric Franchise for cities, 1.5 Electric Facilities. Electric transmission and distribution towers, poles, conductors, lines, guys, anchors, conduits, fixtures, and necessary appurtenances owned or operated by Company for the purpose of providing electric energy for public or private use. 1.6 Notice. A written noticewriting served by eneany party or parties on theany other party referencing one or more provisions of this Ordinance.or parties. Notice to Company shall be mailed to the General Counsel, 41-4Legal Services, Suite 3000, 800 Nicollet Mall, 5th Floor, Minneapolis, MN 55101. 55402. Notice to the City shall be mailed to the City Administrator, 600 Town Center Parkway, Lino Lakes, MN 55014. Either Any party may change its respective address for the purpose of this Ordinance by written notice to the other party. 1.7 Public Ground. Land owned or otherwise controlled by the City for park, open space or similar public purpose, which is held for use in common by the public. 1.8 Public Way. Any street, alley, walkway or other public Public right -of -way within the City.— as defined in Minn. Stat. §237.162 subd. 3. SECTION 2. ADOPTION OF FRANCHISE. 2.1 2.1. Grant of Franchise. City hereby grants Company, for a period of 20 years from the date this Ordinance is passed and approved by the City, the right to transmit and furnish electric energy for light, heat: and power and other purposes for public and private use within and through the, limits of the City as its boundaries now exist or as they may be extended in the future. For these purposes, Company may construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Gr-eufidsWays and Public Ways of CityGrounds, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject; however, to such reasonable regulations as may be imposed by the City pursuant to ordinance or permit requirements and to the further provisions of this franchise agreement_ 2.2 2.2. Effective Date; Written Acceptance. This franchisees shall be in force and effect from and after the passage of this Ordinance, ' .., - . ..,• ., and its publication as required by law. agreement if and its acceptance by Company. If Company does not file a written acceptance with the City within 90 days after publication60 days after the date the City Council adopts this Ordinance, the City Council by resolution may revoke this franchise or seek its enforcement in a competent jurisdiction. 2.3 2.3. Service and, Rates.- and Area. The service to be provided and the rates to be charged by Company for electric service in City are subject to the jurisdiction of the Commission. The area within the City in which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section 216B. 37 -.40. 2.4 2.4. Publication Expense.-The Company shall pay the expense of publication of this Ordinance will be paid by City and reimbursed to City by Company. • • • • 2.5 2.5. Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within thirty (30) days of the date of written noticcNotice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action permitted by Continuation of Franchise. If the City and the Company are unable to agree on the terms of a new franchise by the time this franchise expires, this franchise will remain in effect until a new franchise is agreed upon, or until 90 days after the City or the Company serves written Notice to the other party of its intention to allow the franchise to expire. However, in no event shall this franchise continue for more than one year after expiration of the year term set forth in Section 2.1. SECTION 3. LOCATION, OTHER REGULATIONS. X3.1. Location of Facilities. Electric Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt or interfere with the normal operation of any City Utility System previously installed therein. Electric Facilities shallmav be located on Public Grounds as determined by the City. Company's construction, reconstruction, operation, repair, maintenance and location and relocation of Electric Facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the City consistent with authority granted the City to manage its Public Ways and Public Grounds under state law, to the extent not inconsistent with the —terra specific term of this franchise agreement Company may abandon underground Electric Facilities in place, provided at the City's request, Company will remove abandoned metal or concrete encased conduit interfering with a City improvement project, but only at its own expense to the extent such conduit iaabandoned Facilities are uncovered by excavation as part of the City's improvement project. 3.2 Field Locations. Company shall provide field locations for its Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D. 3.3 33. Street Openings. Company shall not open or disturb the surface of any Public Way or Public Ground or Public Way for any purpose without first having obtained a permit from the City, if required by a separate ordinance; for which the City may impose a reasonable fee. Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. Company may, however, open and disturb the surface of any Public GfeundWay or Public WayGround without the City whcrca permit if (i) an emergency exists requiring the immediate repair of Electric Facilities. In such event and (ii) Company shall notify the City by telephone to the office designated by the City as soon as practicable. Not late Company shall obtaingives telephone, email, or similar notice to the City before, if reasonably possible, commencement of the emergency repair. Within two business days after commencing the repair, Company shall apply for any required permits and pay any required fees. 3.43.4. Restoration. After undertaking any work requiring the opening of any Public Ground or Public Way,Way, the Company shall restore the same, including paving and its foundation,Public Way in accordance with Minnesota Rules, part 7819.1100 and applicable City ordinances consistent with law. Company shall restore Public Ground to as good a condition as formerly existed, and shall maintain any pavedthe . surface in good condition for two yearssix (6) months thereafter. The All work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground or Public Way in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration of the Public Ground at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section 3.4, but the3.4. 3.5 Performance Security. The City hereby waives any requirement, in the normal course of Company operations, for Company to post a construction performance bond, certificate of insurance, letter of credit or any other form of security or assurance that may be required; under a separate existing or future ordinance of the City, of a person or entity obtaining the City" s permission to install, replace or maintain facilities in a Public Way, or the Public Ground. Notwithstanding the foregoing, the City reserves the right to require a performance bond for new installation, replacement, or repairs, when the Company's completion of its work is required in order for the City to proceed on a timely basis with a public improvement project. 3.6. Shared Use of Poles. Company shall make space available on its poles or towers for City fire, water utility, police or other City facilities whenever such use will not interfere with the use of such poles or towers by Company, by another electric utility, by a telephone utility, or by any cable television company or other form of communication company. In addition, the City shall pay for any added cost incurred by Company because of such use by City. 3.5 3.7. Avoid Damage to Electric Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities while performing any activity. The Company must take reasonable measures to prevent the Electric Facilities from causing damage to persons or property. The Compan_ must take reasonable measures to s rotect the Electric Facilities from damage that could be inflicted on the Facilities by persons, property, or the elements. The Company must take protective measures when the City performs work near the Electric Facilities, if given reasonable notice by the City of such work prior to its commencement. • • • • • 3,6-3.8. Notice of. Improvements., to Streets. The City must give Company reasonable noticewritten Notice of plans for improvements to Public Grounds or Public Ways where the City has reason to believe that Electric Facilities may affect or be affected by the improvement . The notice must contain: (i) the nature and character of the improvements, (ii) the Public Grounds and Public Ways upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Ground or Public Way is involved, the information provided by the contractors regarding the order in which the work is intended to proceed. The notice must be given to Company a sufficient length of time, considering seasonal working conditions, in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Electric Facilities that the Company deems necessary. 3.7 Shared Use of Poles. Company shall make space available on its poles or towers by another electric utility, by a telephone utility, or by any cable television company or other form of communication company. In addition, the City shall pay for any added cost incurred by Company because of such use by City. 3.9. Mapping Information. The Company must promptly provide mapping information for any of it Electric Facilities in accordance with Minnesota Rules parts 7819.4000 and 7819.4100. SECTION 4. FACILITIES RELOCATION. 44-4.1. Relocation of Electric Facilities in Public Warms If the City determines to vacate a Public Way for a City improvement project, or at City's cost to grade, rcgradc, or change the line of any Public Way, or construct or reconstruct any City Utility System in any Public Way, it may order Company to relocate its Electric Facilities located therein if relocation is reasonably necessary to accomplish the City's proposed public improvement Except as provided in Section 4.3, Company shall relocate its Electric Facilities at its own expense. The City shall give Company reasonable notice of plans to vacate for a City improvement project, or to grade, regrade, or change the line of any Public Way or to construct or reconstruct any City Utility System. If a relocation is ordered within five years of a prior relocation of the same Electric Facilities, which was made at Company expense, the City shall reimburse Company for non because of the extension of a City Utility System to a previously unserved area, Company may be required to make the subsequent relocation at its expense. Nothing in this Ordinance requires Company to relocate, remove, replace or reconstruct at its own expense its Electric Facilities where such relocation, removal, replacement or reconstruction is solely for the convenience of the City and is not reasonably necessary for the construction or reconstruction of a Public Way or City Utility System or other City improvementin Public Ways. The Company shall comply with Minnesota Rules, part 7819.3100 and applicable City police powers and ordinances consistent with law. 1.2 4.2. Relocation of Electric Facilities in Public Ground.Grounds. City may require Company, at Company's expense; to relocate or remove its Electric Facilities from Public Ground upon a finding by City that the Electric Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground. Such relocation shall com s 1 with ci s olice s owers and a s s licable ordinances consistent with law. 1.3 4.3. Projects with Federal Funding. Relocation, removal, or rearrangement of any Company Electric Facilities made necessary because of the extension into or through City of a federally -aided highway project shall be governed by the provisions of Minnesota Statutes; Section 161.46, as supplemented or amended. It is understood that the right herein granted to redevelopment plan which is financially subsidized in whole or in part by the Federal i obli ated to s a Com s an onl f i r those • ortions o its r1 Section 161.46. The City cation co is f i r which i has received federal funding specifically allocated for relocation costs in the amount requested by the Company. 4.4 No Waiver. The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right -of -way acquired by easement or prescriptive right before the applicable Public Ground or Public Way was established, or Company's rights under state or county permit. SECTION 5. TREE TRIMMING. Unless otherwise provided in any permit or other reasonable regulation reauired b the City under separate ordinance, Company may trim all trees and shrubs in the Public GresWays and Public WaysGrounds of City to the extent Company finds necessary to avoid interference with the proper construction, operation, repair and maintenance of any Electric Facilities installed hereunder, provided that Company shall savehold the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City. SECTION 6. INDEMNIFICATION. 6.1 6.1. Indemnity of City. Company shall indemnifyeep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Electric Facilities located in the Public GreundsWays and Public Ways- Grounds. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. The City shall not be indemnified if the injury or damage results from the performance in a proper manner, of acts • • • • • 6.2 6.2. Defense of City. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the Cityj and Company, in defending any action on behalf of the City; shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. This franchise agreement shall not be interpreted to constitute a waiver by the City of any of its defenses of immunity or limitations on liability under Minnesota Statutes, Chapter 466. SECTION 7. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. Except where required for a City improvement project, the vacation of of its rights to operate and maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to preserve a right of way underThe City and the Company shall comply with Minnesota Rules, 7819.3100 subpart 2 and 7819.3200 and applicable ordinances consistent with law. SECTION 8. ABANDONED FACILITIES. The Company shall comply with City ordinances, Minnesota Statutes, Section 160.29.216D.01 et seq. and Minnesota Rules Part 7819.3300, as they. may be amended from time to time. The Company shall maintain records describing the exact location of all abandoned and retired Facilities within the City, produce such records at the City's, request and comply with the location requirements of Section 216D.04 with respect to all Facilities, including abandoned and retired Facilities. SECTION &-9. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 99: -10. FRANCHISE FEE. 10.1. Form. During the term of the franchise hereby granted, and in addition to permit fees being imposed or that the City has a right to. impose, the City may charge the Company a franchise fee. The fee may be (i) a percentage of gross revenues received by the Company for its operations within the City, or (ii) a flat fee per customer based on metered service to retail customers within the City or on some other similar basis, or (iii) a fee based on units of ener •y delivered to any class of retail customers within the corporate limits of the Ci . The formula for a franchise fee based on units of ener delivered ma incorporate both commodity and demand units. The method of imposing the franchise fee, the s ercenta ' e of revenue rate or the flat rate based on metered service ma differ for each customer class or combine the methods described in (i) - (iii) above in assessing the fee. The City shall seek to use a formula that provides a stable and predictable amount of fees without a lacin ' the Com . an at a com i etitive disadvanta ' e. If the Com s an claims that the City- required fee formula is discriminator or otherwise • laces the Com . an at a competitive disadvanta ' e, the Company shall provide a formula that will produce a substantially similar fee amount to the City and reimburse the City's reasonable fees and costs in reviewing the formula. The Ci _ will attem s t to accommodate the Com a an but is under no franchise obligation to adopt the Company- proposed franchise fee formula and such review will not dela the im s lementation of the Ci -im • osed fee. 10.2. Separate Ordinance. The franchise fee shall be imposed by se . arate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least thirty (30) da s after written notice enclosin ' such fro s osed ordinance has been served upon the Company. The fee shall become effective ten (10) days after written notice enclosing such adopted ordinance has been served upon the Company b certified mail. 10.3. Condition of Fee. The separate ordinance imposing the fee shall not be effective a. ainst the Com • any unless it lawfully imposes a fee of the same or substantially similar amount on the sale of electric ener ' within the Ci b an other electric ener supplier provided that as to such supplier, the Ci _ has the authori to re• uire a franchise fee. Unless otherwise a ;reed by the Company, the City will not impose a franchise fee that exceed five 5_. ercent of the ' ross revenues derived b the Com s an from 0 erations within the Ci rovided however that such limit will not a 1 if through deregulation or other cause allowing customers to • urchase electrici from sources other than the Com a an the Com . an 's ' ross revenues from o a erations in the City are reduced during the term of this franchise. 10.4. Collection of Fee. The franchise fee shall be payable not less than quarterly durin`, complete billing months of the period for which payment is to be made. The franchise fee formula may be changed from time to time; however, the change shall meet the same notice requirements and the fee may not be changed more often than annually. Such fee shall not exceed any amount that the Company may legally charge to its customers prior to pa ment to the. City. Such fee is sub_ect to subse I uent reductions to account for uncollectibles and customer refunds incurred b_ the Com • an . The Com . an agrees to make available for inspection by the City at reasonable times all records necessary to audit the Company's determination of the franchise fee pa ments. SECTION 11. PROVISIONS OF ORDINANCE. 9.1 11.1. Severability. Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part} and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part.. -; provided, however, that • • • • • if the City is unable to enforce its franchise fee provisions for any reason the City will be allowed to amend the franchise agreement to impose a franchise fee pursuant to statute. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 9.2 11.2. Limitation on Applicability. This Ordinance constitutes a franchise agreement between the City and Company as the only parties; and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. SECTION 10.12. AMENDMENT PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended to address a subject of concern, and the other party will consider whether it agrees that the amendment is mutually appropriate. If an amendment is agreed upon, this. This Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 90 days after the date of final passage by the City council adoption of the amendatory ordinance. SECTION X13. PREVIOUS FRANCHISES SUPERSEDED. This franchise supersedes any previous electric franchise granted to Company or its predecessor. Passed and approved: , 200. Attest: City Clerk, Lino Lakes, Minnesota Date Published: Mayor of the City of Lino Lakes, Minnesota • • WS — Item 8 WORK SESSION STAFF REPORT Work Session Item 8 Date: June 2, 2008 To: City Council From: Gordon Heitke Re: Amendments to Liquor Ordinance Background During the council discussion of a new off -sale liquor license for the Liquor Barrel on May 27, 2008, members agreed to discuss possible amendments to the existing liquor ordinance at the next work session. Staff has placed this issue on this agenda for discussion. Requested Council Direction Staff is seeking direction regarding any desired future actions. CA) 1. e I A. ay C., Updated June 2005 • 700 Liquor and Beer 701. Liquor Licensing 701.01 Subdivision 1. Provisions of State Law Adopted. The provisions of Minnesota Statutes, Chapter 340, with reference to definitions of terms, applications for license, granting of license, conditions of license, restriction on consumption, provision of sales, conditions of bonds of license, hours of sales, and all other matters pertaining to the retail sale, distribution and consumption of intoxicating liquor, are hereby adopted and made a part of this chapter as if fully set out herein. Subdivision 2. City May be More Restrictive Than State Law. The Council is authorized by the provisions of M.S.A. § 340A.509, as it may be amended from time to time, to impose, and has imposed in this Chapter, additional restrictions on the sale and possession of alcoholic beverages within its limits beyond those contained in M.S.A. Chapter 340A, as it may be amended from time to time. Amended by Ordinance No. 13 -02, 10/28/02 701.02 License Required. Subdivision 1. General Requirements. No person, except a wholesaler or manufacturer, to the extent authorized under state license, shall directly or indirectly deal in, sell or keep for sale in the city any intoxicating liquor without first obtaining a license to do so as provided in this chapter. Liquor licenses shall be of six kinds: (1) On -Sale; (2) On -Sale Wine; (3) Off -Sale; (4) Club License; (5) Sunday On -Sale; and 6) Temporary Set -Up License. Amended by Ordinance 3 -83, passed 7/11/83. Subd. 2. On -Sale License. On -Sale licenses shall be issued only to hotels, clubs, restaurants and exclusive liquor stores and shall permit on -sale of liquor only. 1 Updated June 2005 Subd. 3. On -Sale Wine License. On -Sale Wine License shall be issued only to restaurants meeting the qualifications of Minnesota Statutes, Section 340.11, Subd. 20, and shall permit only the sale of wine not exceeding 14% alcohol by volume for consumption on the licensed premises only in conjunction with the sale of food. Subd. 3a. Strong Beer Sales in Conjunction with Wine and 3.2% Beer Licenses. Licensees who hold both an on -sale wine license and an on -sale 3.2% malt liquor license and whose gross receipts are at least 60% attributable to the sale of food may sell intoxicating malt liquor (strong beer) at on -sale without an additional license, as allowed by Minnesota Statutes, Section 340A.404, subd. 5. Amended by Ordinance 05 -04, passed 03/22/04. Subd. 4. Off -Sale License. Off -Sale licenses shall be issued only to exclusive liquor stores and shall permit off -sale of liquor only. Subd. 5. Club License. Club licenses shall be issued only to incorporated clubs which have been in existence for fifteen years or more, or to congressionally chartered veterans' organizations which have been in existence for ten years, and shall permit on -sale of liquor to members and bona fide guests only. Subd. 6. Sunday On -Sale License. Sunday On -Sale licenses may be issued to any hotel, restaurant, or club which has facilities for serving at least thirty guests at one time and which has an on -sale license and shall permit on -sale of liquor on Sunday in conjunction with the serving of meals. Subd. 7. Combination License. A combination On -Sale and Off -Sale License shall be issued only to an exclusive liquor store. Subd. 8. Temporary Set Up License. A one -day intoxicating liquor consumption and display permit may be issued to any non -profit organization in connection with a social activity occurring within the city and sponsored by the organization. No more than ten such licenses shall be issued in the city in any year. The fee for such license shall be $25.00. A permit shall allow consumption or display of intoxicating liquor and the serving of liquids for the purpose of mixing with intoxicating liquor, but shall not allow the sale of intoxicating liquor. This permit shall be valid only for the day indicated on it. No peiniit issued pursuant to this subdivision shall be valid unless first approved bY the Commissioner of Public Safety. Amended by Ordinance No. 3 -83, passed 7/1 1/83. Subdivision 9. Licenses Reserved. Of the number of on -sale liquor licenses that the City is allowed to issue under Minnesota Statute 340A.413, three licenses shall be reserved for the following uses in the specified locations only: two shall be issued only to restaurants or hotels with restaurants in the Town Center area at Lake Drive and I -35W; one shall be issued only to a restaurant or a hotel with a restaurant in the I -35E and Main Street business area. These areas are shown on the map in Section 701.11. These restaurants shall 2 Updated June 2005 have facilities to serve meals at tables to the general public and have seating capacity to serve a minimum of 50 guests at one time, and at least 50% of gross revenue shall be from the serving of food and non - alcoholic beverages. The City may require a statement signed by an independent certified public accountant attesting that the establishment meets this revenue requirement. Amended by Ordinance No. 13 -99, passed 6/14/99 701.03 Application for License. Subdivision 1. Forms. Every application for a license to sell liquor shall state the full first, middle and last name, date of birth, representations as to the applicant's character, with such references as the council may require, citizenship, the type of license applied for, the business in connection with which the proposed license will operate and its location, whether the applicant is the owner and operator of the business, how long the applicant has been in business at that location and such other information as the council may require from time to time. In addition to containing such information, the application shall be on the form prescribed by the Commissioner of Public Safety and shall be verified and filed with the city clerk. No person shall make a false statement in an application. Sale and consumption of intoxicating liquors on premises with an on -sale license is limited to within the building at the address designated on the license unless the license specifically grants permission for sale and consumption outside of the building. Any area outside of the building where liquor will be served, such as a patio, garden or sidewalk . area, must be described on the license, must be contiguous to the building, and must be covered by liability insurance. Any such outdoor serving area shall require a conditional use permit. Ordinance No. 13 -99, passed 6/14/99 Subd. 2. Liability Insurance. Prior to the issuance of a liquor license, or a wine license, the applicant shall file with the city clerk a liability insurance policy in the minimum amount of One Hundred Thousand ($100,000.00) Dollars coverage for one person, and Three Hundred Thousand ($300,000.00) Dollars coverage for more than one person, which shall comply with provisions of Minnesota Statute Section 340.12 relating to the liability insurance policies. If a liability insurance policy is made subject to all the conditions of a bond under that Statute, the policy may be accepted by the council in lieu of the bond required under Subd. 2. Such liability insurance policies shall further provide that no cancellation of the same for any cause can be made either by the insured or the insurance company without first giving ten days notice to the city in writing. The operation of a licensed premises without having on file at all times with the city the required liability insurance policy shall be grounds for immediate revocation of license. Amended by Ordinance No. 08 -91, passed 5/28/91 701.04 License Fees. 3 • Updated June 2005 Subdivision 1. Amounts. The annual fee for liquor licenses shall be as stated in the annual fee schedule adopted by the City Council. Ordinance No. 13 -99, passed 6/14/99 Amended by Ordinance No. 13 -02, 10/28/02 Subd. 2. Payment. Each application for a liquor license shall be accompanied by a receipt from the city clerk for payment in full of the license fee and the fixed investigation fee required under 701.05, Subd. 1. All fees shall be paid into the general fund. If an application for a license is rejected, the city clerk shall refund the amount paid as the license fee. Amended by Ordinance No. 13 -02, 10/28/02 Subd. 3. Term, Pro -Rata Fee. Each license shall be issued for a period of one year, except, that if the application is made during the license year, a license may be issued for the remainder of the year for a pro -rata fee with any unexpired fraction of a month being counted as one month. Every license shall expire on the last day of June. Subd. 4. Refunds. No refund of any fee shall be made except as authorized by state statute. 701.05 Granting of License. Subdivision 1. Preliminary Investigation. On an initial application for an On -Sale License, and on application for transfer of an existing On -Sale License, the applicant shall pay, with his application, an investigation fee as established by the City Council in the annual fee schedule. The city shall conduct a preliminary background and financial investigation of the applicant. The application, in such case, shall be made on a form prescribed by the Bureau of Criminal Apprehension and with such additional information as the council may require. If the council deems it in the public interest to have an investigation made on a particular application for a renewal of an On -Sale License, it shall so determine. In any case, if the council determines that a comprehensive background and financial investigation of the applicant is necessary, it may conduct the investigation itself through the Public Safety Director or contract with the Bureau of Criminal Investigation for the investigation. No license shall be issued, transferred, or renewed if the results show to the satisfaction of the council that the issuance would not be in the public interest and safety. If an investigation outside the state is required, the applicant shall be charged the cost not to exceed Ten Thousand ($10,000.00) Dollars. It shall be paid by the applicant after deducting any initial investigation fee already paid. The fees required under this section shall be payable by the applicant whether or not the license is granted. Ordinance No. 13 -99, passed 6/14/99 4 Updated June 2005 Subdivision 1.a. Inspection of Premises. The applicant shall at all times permit the health officers and representatives of the police and fire departments to inspect and examine the place of business described in the application, together with all appliances, instruments or equipment used or to be used in the conduct of the business for which the license is sought, and any refusal on the part of the applicant to permit such inspection or any false statement in the application shall be sufficient ground for the refusal to issue such license or to revoke the same after issuance thereof. Ordinance No. 13 -99, passed 6/14/99 Subd 2. Hearing and Issuance. The council shall investigate all facts set out in the application and not gated investigated in the preliminary background and financial investigation conducted pursuant to Subd. 1. Opportunity shall be given to any person to be heard for or against the granting of the license. After the investigation and hearing, the council shall, in its discretion, grant or refuse the application. No On -Sale, On -Sale Wine License, Off-Sale License, or Club License shall become effective until it, together with the security furnished by the applicant has been approved by the Commissioner of Public Safety. Subd. 3. Transfers. Each license shall be issued only to the applicant and for the premises described in the application. No license shall be transferred to another person or place without council approval. The transfer of any stock of a corporate licensee shall be deemed a transfer of the license, and any transfer of any stock without prior council approval shall render the license void. Subd. 4. Corporate License. Licenses may be issued to a partnership or a corporation. Amended by Ordinance No. 13 -99, passed 6/14/99 701.06 Persons Ineligible for License. No license shall be granted to any person made ineligible for such license by state law. No more than one intoxicating liquor license shall be directly or indirectly issued within the city to any one person. Amended by Ordinance No. 13 -99, passed 6/14/99 701.07 Places Ineligible for License. Subdivision 1. General. No license shall be issued for any place of any business ineligible for such a license under state law. 5 • Updated June 2005 Subd. 2. Delinquent Taxes and Charges. No license shall be granted for operation on any premises for which taxes, assessments or other financial claims of the city are delinquent and unpaid. Subd. 3. Distance From School or Church. No license shall be granted within 1,000 feet of any school or within 1,000 feet of any church. The distance shall be measured from the main entrance of the school or church to the main entrance of the applicant's place of business. For the purposes of the separation restriction in this subdivision, a school is a building that is principally used as a place where twenty -five (25) or more persons receive a full course of educational instruction and the educational instruction is provided on a daily basis by an established school board or church. This doe not include any post - secondary or post -high school educational building, including any college or any vocational- technical college. Nor does the separation apply to a daycare or early childhood facility, where children typically are under constant supervision while at the facility and when traveling to and from the facility. The establishment of a school or church within the separation distance after an original liquor license application has been granted shall not, in and of itself, render such premises ineligible for renewal of the license. • Amended by Ordinance No. 13 -99, passed 6/14/99 701.08 Conditions of the License. Subdivision 1. General. Every license is subject to the conditions in the following subdivisions and all other provisions of this chapter, and of any other applicable ordinance, state law, or regulation. Subd. 2. Licensee Responsibility. Every licensee shall be responsible for the conduct of his place of business and the conditions of sobriety and order in it. The act of any employee on the licensed premises authorized to sell intoxicating liquor there is deemed the act of the licensee as well, and the licensee shall be liable to all penalties provided by ordinance, statute, or regulation equally with the employee. Subd. 3. Inspections. Every licensee shall allow any peace officer, health officer or properly designated officer or employee of the city to enter, inspect, and search the licensed premises during business hours without a warrant. Subd. 4. Display Hours. No On -Sale establishment shall display liquor to the public during hours when the sale of liquor is prohibited. Subd. 5. Federal Stamps. No licensee shall possess a federal wholesale liquor dealers special tax stamp or a federal gambling stamp. 6 Updated June 2005 701.09 Restrictions on Purchase and Consumption. Subdivision 1. Liquor in Unlicensed Places. No person shall mix or prepare liquor for consumption in any public place or place of business unless it has a license to sell liquor On -Sale or a permit from the Commissioner of Public Safety under Minnesota State Statute, Section 340.119. No person shall consume liquor in any such place, unless licensed or permitted. Subd. 2. Consumption in Public Places. No person shall consume intoxicating liquor on a public highway or in a public park or other public place. Subd. 3. Hours. No on -sale or off-sale of liquor shall be made, nor any licensed premises be occupied, after 2:00 a.m. on Sunday nor until 8:00 a.m. on Monday, except that a holder of a Sunday On -Sale license may sell liquor between 10 a.m. on Sunday and 2:00 a.m on Mondays. No on -sale shall be made between the hours of 2:00 a.m. and 8:00 a.m. on any weekday. No on -sale shall be made after 8:00 p.m. on December 24. No ofd sale shall be made before 8:00 a.m. or after 10:00 p.m. of any day except that no off -sale shall be made on December 24 after 8:00 p.m. No off -sale shall be made on Thanksgiving Day; or Christmas Day, December 25. Amended by Ordinance No. 13 -83, 12/27/83. Amended by Ordinance No. 11 -89, 12/11/89. Amended by Ordinance No. 13 -02, 10/28/02 Amended by Ordinance No. 02- 05,06/13/05 Subd. 4. Vacation of Premises. No licensee shall permit any person other than his employees to remain on the licensed premises more than thirty minutes after the time during which sales of liquor may legally be made. No person other than the licensee or his employees shall remain on the licensed premises more than thirty minutes after the time during which sales of liquor may legally be made. The presence of any person other than the licensee or his employees within, entering or leaving the premises more than thirty minutes after the time during which liquor may legally be sold shall be prima facie evidence of violation of this subdivision. For purposes of this subdivision, "premises" shall mean any portion of the address or legal description to which the license is issued, including, but not limited to, the entire land area of the parcel, the interior or exterior of buildings or portions of buildings thereon, any entrance ways into such buildings, any sidewalk, parking lots, whether paved or not, and any adjoining unimproved land areas in such parcels. 701.10 Revocation, Denial or Suspension. Subdivision 1. General. 7 • • Updated June 2005 A license issued or to be issued by the City may be denied, suspended, or revoked by the City Council for any of the following causes: (a) Fraud, misrepresentation, or incorrect statement contained in the application for license, or made in carrying on the licenses activity. (b) Conviction of any crime, or misdemeanor, pertaining to license held or applied for, subject to the provisions of Minnesota Statutes, Chapter 364, as amended. (c) Conducting such licensed activity in such a manner as to constitute a breach of the peace, or a menace to the health, safety and welfare of the public, or a disturbance of the peace or comfort of the residents of the City, upon recommendation of the City health authorities or other appropriate City official. (d) Expiration or cancellation of any required bond or insurance, or failure to notify the City within a reasonable time of changes in the terms of the insurance or the carriers. (e) Actions unauthorized or beyond the scope of the license granted. (f) Violation of any regulation or provision of this Code applicable to the activity for which the license has been granted, or any regulation or law of the State so applicable. (g) Failure to continuously comply with all conditions as required as precedent to the approval of the license. Amended by Ordinance No. 13- 02,10/28/02 Subd. 2. Notice. Except yin :the case of 'a -susperi5ion-pendin,,g :a"hearmg °one; Trevocatiofi tenfdays_writCen no..ttce-ofsupension or revocation shall_}b_e:girdi:toKthe licensee Said notice shall contain the date, time, and place of the hearing as well as the nature of the charges against the license. Subd. 3. Suspension Pending a Hearing. The council may for cause, when in its judgment the public health, safety and welfare is endangered, and without advance notice, temporarily suspend any license pending a hearing on revocation for a period not to exceed thirty days. Amended by Ordinance No. 13 -02, 10/28/02 8 Updated June 2005 • 702. Beer Licensing 702.01 Definitions. Subdivision 1. Beer. As used in this chapter, "beer" or "non- intoxicating malt liquor" means any malt beverage with an alcoholic content of more than one -half of one percent by volume and not more than three and two- tenths percent by weight. Subd. 2. Beer Store. "Beer store" means an establishment for the sale of beer, cigars, cigarettes, all forms of tobacco, beverages and soft drinks at retail. 702.02 License Required. Subdivision 1. Licenses. No person, except wholesalers and manufacturers to the extent authorized by law, shall deal in or dispose of by gift, sale or otherwise, or keep or offer for sale, any beer within the city without first having received a license as hereinafter provided. Licenses shall be of three kinds: (1) Regular "on- sale "; (2) Temporary "on- sale "; (3) "Off- sale." Subd. 2. Regular on -sale. Regular "on- sale" licenses shall be granted only to bona fide clubs, beer stores, exclusive "on -sale" liquor stores, restaurants and hotels where food is prepared and served for consumption on the premises. "On- sale" licenses shall permit the sale of beer for consumption on the premises only. Subd. 3. Temporary "on- sale ". Temporary "on -sale" licenses shall be granted only to bona fide clubs and charitable, religious, and non -profit organizations for the sale of beer for consumption on the premises only. Subd. 4. Off-sale. "Off- sale" licenses shall permit the sale of beer at retail, in the original package for consumption off the premises only. 702.03 Applications. Every application for a license to sell beer shall be on a form supplied by the city, and shall state full first, middle and last name, date of birth, representations as to his character, with such references as the council may require, his citizenship, the type of license applied for, any business in connection with which the proposed license will operate, the location proposed for the licensed premises, whether the applicant is the owner and operator of the business, how long he has been in business at that location, and such other information as the council may require. Each application shall be verified, and filed with the city clerk. No person shall make false statement in an application. 9 Updated June 2005 Amended by Ordinance No. 13 -02, 10/28/02 702.04 License Fees. Subdivision 1. Payment Required. Each application for a license shall be accompanied by a receipt from the city clerk for payment in full of the required fee for the license. All fees shall be paid into the general fund of the city. Upon rejection of any application for a license, the city clerk shall refund the amount paid. Amended by Ordinance No. 13 -02, 10/28/02 Subd. 2. Expiration; Pro Rata Fees. Every license except a temporary license shall expire on the last day of June in each year. Each license except a temporary license shall be issued for a period of one year, except that if a portion of the license year has elapsed when the license is granted, the license shall be issued for the remainder of the year for a pro rata fee. In computing such fee, any unexpired fraction of a month shall be counted as one month. A temporary license shall be issued for a specific period in which a special event to which the sale is incident is being held and such period shall be stated on the license. Subd. 3. Fees. The annual fee for beer licenses shall be as stated in the annual fee schedule adopted by the City Council. Amended by Ordinance No. 13 -02, 10/28/02 Subd. 4. Refunds. No refund of any fee shall be made except as authorized by state statute. 702.05 Granting of License. Subdivision 1. Investigation and Hearing. The council shall investigate all facts set out in the application. Opportunity shall be given to any person to be heard for or against the granting of the license. After such investigation and hearing, the council shall grant or refuse the application in its discretion. Subd. 2. Transfers. Each license shall be issued to the applicant only and shall not be transferable to another holder. Each license shall be issued only for the premises described in the application. No license may be transferred to another place without the approval of the council. 10 Updated June 2005 • 702.06 Persons Ineligible for License. No license shall be granted to or held by any person who: (1) Is under 21 years of age; Ordinance No. 13 -99, passed 6/14/99 (2) Has within five years prior to the application for such license, been convicted of a felony, or of violating any law of this state or local ordinance relating to the manufacture, sale, distribution, or possession for sale or distribution of intoxicating liquors, and cannot show competent evidence under Minnesota Statutes Section 364.03 of sufficient rehabilitation and present fitness to perform the duties of a beer licensee; (3) Is a manufacturer of beer or is interested in the control of any place where beer is manufactured; (4) Is an alien or a non - resident of the state; (5) Is not of good moral character; (6) Is or during the period of this license becomes the holder of a federal retail liquor dealer's special tax stamp for the sale of intoxicating liquor at any place unless there has also been issued to him a local license to sell intoxicating liquor at such place; (7) Is not the proprietor of the establishment for which the license is issued. 702.07 Places Ineligible for License. Subdivision 1. Conviction or Revocation. No license shall be granted for sale on any premises where a licensee has been convicted of the violation of this chapter, or of the state beer or liquor law, or where any license hereunder has been revoked for cause until one year has elapsed after such conviction or revocation. Subd. 2. Amusement Places. No license shall be granted for any theater, recreation hall or center, or licensed dance hall. Subd. 3. Delinquent Taxes and Charges. No license shall be granted for any premises for which taxes, assessments, or other financial claims of the city are unpaid. 11 • Updated June 2005 702.08 Conditions of License. Subdivision 1. General Conditions. Every license shall be granted subject to the conditions in the following subdivisions and all other provisions of this chapter and of any other applicable ordinance of the city or state law. Subd. 2. Sales to Minors or Intoxicated Persons. No beer shall be sold or served to any intoxicated person or to any person under 21 years of age. Ordinance No. 13 -99, passed 6/14/99. Subd. 3. Consumption by Minors. No person under the age of 21 shall be permitted to consume beer on the licensed premises. Amended by Ordinance No. 13 -02, 10/28/02 Subd. 4. Employment of Minors. No minor under 18 shall be employed on the premises of a beer store. Amended by Ordinance No. 13 -02, 10/28/02 Subd. 5. Gambling. No gambling or any gambling device shall be permitted on any licensed premises. Subd. 6. Interest of Manufacturers or Wholesalers. No manufacturer or wholesaler of beer shall have any ownership of or interest in an establishment licensed to sell at retail contrary to the provisions of Minnesota Statutes Section 340.031. No retail licensee and manufacturer or wholesaler of beer shall be parties to any exclusive purchase contract. No retail licensee shall receive any benefits contrary to law from a manufacturer or wholesaler of beer and no such manufacturer or wholesaler shall confer any benefits contrary to law upon a retail licensee. Subd. 7. Liquor Dealer's Stamp. No licensee shall sell beer while holding or exhibiting in the licensed premises a federal retail liquor dealer's special tax stamp unless he is licensed under the laws of Minnesota to sell intoxicating liquors. Subd. 8. Sales of Intoxicating Liquor. No licensee who is not also licensed to sell intoxicating liquor and who does not hold a consumption and display permit shall sell or permit the consumption or display of intoxicating liquors on the licensed premises or serve any liquids for the purpose of mixing with intoxicating liquor. The presence of intoxicating liquors on the premises of such a licensee shall be prima facie evidence of possession of intoxicating liquors for the purpose of sale; and the serving of any liquid for the purpose of mixing with intoxicating liquors shall be prima facie evidence that intoxicating liquor is being permitted to be consumed or displayed contrary to this chapter. 12 Updated June 2005 Subd. 9. Inspections. Every licensee shall allow any peace officer, health officer, or properly designated officer or employee of the city to enter, inspect, and search the licensed premises during business hours without a warrant. Subd. 10. Licensee Responsibility. Every licensee shall be responsible for the conduct of his place of business and shall maintain conditions of sobriety and order. The act of any employee on the licensed premises authorized to sell beer there is deemed the act of the licensee as well, and the licensee shall be liable to all penalties provided by ordinance, statute, or regulation equally with the employee. Subd. 11. Banquet Rooms. A regular "on -sale" license shall entitle the holder to serve beer in a separate room of the licensed premises for banquets or dinners at which are present not fewer than six persons. 702.09 Closing Hours. No sale of beer shall be made, nor shall any licensed premises be occupied, on any Sunday between the hours of 1:00 A.M. and 12:00 Noon, nor between the hours of 1:00 A.M. and 8:00 P.M. on the day of any state wide election. No sale shall be made between the hours of 1:00 A.M. and 8:00 A.M. on any other day. 702.10 Clubs. No club shall sell beer except to members and to guests in the company of members. 702.11 Restrictions on Purchase and Consumption. Subdivision 1. Age Misrepresentation. No minor shall misrepresent his age for the purpose of obtaining beer. Subd. 2. Inducing Purchase. No person shall induce a minor to purchase or procure beer. Subd. 3. Procurement. No person other than the parent or legal guardian shall procure beer for any minor. Subd. 4. Possession. No minor shall have beer in his possession with the intent to consume it at a place other than the household of his parent or guardian. Subd. 5. Consumption. No person under the age of 21 shall consume alcoholic beverages unless in the household of the parent or guardian and with the consent of the parent or guardian. 13 • • Updated June 2005 Amended by Ordinance No. 13 -02, 10/28/02 Subd. 6. Consumption Prohibited -- Where. No beer shall be consumed in any theater, recreation hall or center, or dance hall. Subd. 7. Liquor Consumption and Display. No person shall consume or display any intoxicating liquor on the premises of a licensee who is not also licensed to sell intoxicating liquors or who does not hold a consumption and display permit. 702.12 Revocation, Denial or Suspension. Subdivision 1. General. A license issued or to be issued by the City may be denied, suspended, or revoked by the City Council for any of the following causes: (a) Fraud, misrepresentation, or incorrect statement contained in the application for license, or made in carrying on the licenses activity. (b) Conviction of any crime, or misdemeanor, pertaining to license held or applied for, subject to the provisions of Minnesota Statutes, Chapter 364, as amended. (c) Conducting such licensed activity in such a manner as to constitute a breach of the peace, or a menace to the health, safety and welfare of the public, or a disturbance of the peace or comfort of the residents of the City, upon recommendation of the City health authorities or other appropriate City official. (d) Expiration or cancellation of any required bond or insurance, or failure to notify the City within a reasonable time of changes in the terms of the insurance or the carriers. (e) Actions unauthorized or beyond the scope of the license granted. (f) Violation of any regulation or provision of this Code applicable to the activity for which the license has been granted, or any regulation or law of the State so applicable. (g) Failure to continuously comply with all conditions as required as precedent to the approval of the license. Amended by Ordinance No. 13 -02, 10/28/02 Subd. 2. Notice. Except in the case of a suspension or revocation pursuant to Subd. 3 or 4, ten days written notice of hearing on suspension or revocation shall be given to the licensee. The notice shall contain the date, time, and place of the hearing as well as the nature of the charges against the licensee. 14 Updated June 2005 Subd. 3. Revocation Without Hearing. The license of any person who holds a federal retail liquor dealer's special tax stamp without a license to sell intoxicating liquors at such place shall be revoked without notice and without hearing. Subd. 4. Suspension Pending Hearing. The council may for cause and without advance notice suspend any license pending a hearing for a period not to exceed thirty days. 15 • • •