HomeMy WebLinkAboutCC PACKET 12082015
Our Mission is to be a progressive and livable community, a walkable village, which is sustainable, safe and secure.
Call to Order.
Pledge of Allegiance.
Roll Call.
Consideration, discussion, and possible action on all of the following items:
I. Approval of the December 8, 2015, City Council Meeting Agenda. (action requested.)
II. Proclamations and Recognitions.
III. Consent Agenda.
These items are considered routine and will be enacted by one motion. There will be no separate
discussion of these items unless a Councilmember or citizen so requests, in which the item will be
removed from the Consent Agenda and placed elsewhere on the agenda.
A. Approval of November 24, 2015, City Council meeting minutes. (pp.1-4
B. Licenses and Permits. (pp.5)
C. Claims. (pp.7-9)
D. Resolution 15-069 a resolution Directing Hennepin County Auditor to Cancel Special Assessment
of 3104 Edgemere Avenue Payable Beginning 2016. (pp.11-13)
E. Resolution 15-070 a resolution Approving the 2016 Salary of Mark Casey, City Manager. (pp.15)
F. Resolution 15-071 a resolution Authorizing Transfers and Closing of Specified Funds. (pp.17-18)
G. Resolution 15-072 a resolution Approving Agreement with Greater Minnesota Housing
Corporation. (pp.19-27)
IV. Public Hearing.
A. Resolution 15-073 a resolution setting the Final 2016 Tax Levy and General Operating Budget
for the City of St. Anthony Village. Shelly Rueckert, Finance Director presenting. (pp.29-48)
V. Reports from Commission and Staff.
A. Resolution 15-074 a resolution Approving a request for an Amendment to Existing Conditional
Use Permit to Allow the Sale of Alcoholic Beverages at 2510 Kenzie Terrace. Dominic Papatola,
Planning Commissioner presenting (pp.49-71) VI. General Business of Council. A. Resolution 15-075 a resolution Authorizing Issuance, Awarding Sale, Prescribing the Form and
Details and Providing for the Payment of $4,445,000 General Obligation TIF Refunding Bonds,
Series 2015B. Stacie Kvilvang, Ehlers and Associates presenting. (pp.73-96) B. Resolution 15-076 a resolution Approving Plans and Specifications, and Authorizing
Advertisements for Bids for the 2016 Street and Utility Improvement Project. Todd Hubmer, City
Engineer presenting. (pp.97-105)
C. Resolution 15-077 a resolution Restricting Parking Along the East Side of Stinson Boulevard for
the 2016 Street and Utility Improvement Project. Todd Hubmer, City Engineer presenting.
(pp.107)
CITY OF ST. ANTHONY VILLAGE
CITY COUNCIL MEETING AGENDA
DECEMBER 8, 2015
7:00 p.m.
HRA meeting immediately
after council meeting
Our Mission is to be a progressive and livable community, a walkable village, which is sustainable, safe and secure.
D. Resolution 15-078 a resolution Approving Combination Wine/Strong Beer License for Catrina’s
located at 2510 Kenzie Terrace. Mark Casey, City Manager presenting. (pp.109-111) E. Resolution 15-079 a resolution Approving the 2016 Fee Schedule. Mark Casey, City Manager
presenting. (pp.113-127) F. Resolution 15-080 a resolution Approving the 2016 Appointments and the Chair and Vice Chair
to the Parks Commission. Mark Casey, City Manager presenting. (pp.129) G. Resolution 15-081 a resolution Approving the 2016 Appointments and the Chair and Vice Chair
to the Planning Commission. Mark Casey, City Manager presenting. (pp.131) H. Ordinance 2015-06 an ordinance Approving CenturyLink Franchise Agreement and Findings of
Fact. Mark Casey, City Manager presenting (Final Reading and Adoption). (pp.133-187)
I. Resolution 15-082 a resolution approving Summary Publication of Ordinance 2015-06
CenturyLink Franchise Agreement. Mark Casey, City Manager presenting. (pp.189-192)
J. Ordinance 2015-07 an ordinance Setting Sewer, Water and Storm Water Charges for 2016. Mark
Casey, City Manager presenting (Final Reading and Adoption). (pp.193-196)
VI. Reports from City Manager and Council members.
VII. Community Forum.
Individuals may address the City Council about any item not included on the regular agenda.
Speakers are requested to come to the podium, sign their name and address on the form at the
podium, state their name and address for the Clerk’s record, and limit their remarks to five minutes.
Generally, the City Council will not take official action on items discussed at this time, but may
typically refer the matter to staff for a future report or direct the matter to be scheduled on an
upcoming agenda.
VIII. Information and Announcements.
IX. Adjournment.
CITY OF ST. ANTHONY 1
CITY COUNCIL REGULAR MEETING MINUTES 2
NOVEMBER 24, 2015 3
4
CALL TO ORDER. 5
6
Mayor Faust called the meeting to order at 7:00 p.m. 7
8
PLEDGE OF ALLEGIANCE. 9
10
Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance. 11
12
ROLL CALL. 13
14
Present: Mayor Faust; Councilmembers Brever, Gray, Jenson and Stille 15
Absent: None 16
Also Present: City Manager Mark Casey and Police Sgt. Jeff Spiess 17
18
CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 19
ITEMS. 20
21
I. APPROVAL OF THE NOVEMBER 24, 2015, CITY COUNCIL MEETING AGENDA. 22
23
Motion by Councilmember Gray, seconded by Councilmember Jenson, to approve the City 24
Council Meeting Agenda of November 24, 2015. 25
26
Motion carried unanimously. 27
28
II. PROCLAMATIONS AND RECOGNITIONS 29
30
A. Presentation of 2015 Fire Prevention Poster Winners, presented by the St. Anthony Fire 31
Department 32
33
Chief Mark Sitarz and Captain Chris Fuller presented the 2015 Fire Prevention Poster Winners. 34
The contest has been going on for over 20 years. There were a couple hundred submissions for 35
the contest. The theme was “Hear the Beep – Where you Sleep”. The winners were: 36
37
4th Place – Nevin Nguyen – 4th Grade Wilshire Park 38
3rd Place – Violet Urdahl – 5th Grade Wilshire Park 39
2nd Place – Aislyn Saravia – 5th Grade Wilshire Park 40
1sr Place – Alayna Peterson – 5th Grade Wilshire Park 41
42
Photographs were taken of all winners with Mayor Faust. 43
44
Mayor Faust stated he is grateful for the young children growing up in the community. The 45
Council is proud of the students and encouraged them to keep working hard. 46
47
III. CONSENT AGENDA 48
49
A. Consider November 10, 2015, City Council meeting minutes 50
1
B. Licenses and Permits 1
C. Claims 2
3
Motion by Councilmember Brever, seconded by Councilmember Jenson, to approve the Consent 4
Agenda items as presented. 5
6
Motion carried unanimously. 7
8
IV. PUBLIC HEARING - NONE 9
10
V. REPORTS FROM COMMISSION AND STAFF - NONE 11
12
VI. GENERAL BUSINESS OF COUNCIL 13
14
A. Ordinance 2015 -06 an ordinance Approving CenturyLink Franchise Agreement and 15
Findings of Fact. 16
17
City Manager Casey reviewed the second of three readings of an ordinance to approve the 18
CenturyLink Franchise Agreement and Findings of Fact. The first reading was held at the 19
November 10, 2015 St. Anthony City Council meeting. Since the first reading, the City has 20
received no calls or written comments. 21
22
The third reading and adoption of the ordinance is scheduled for December 8, 2015. Following 23
the adoption of the ordinance, the ordinance goes into effect upon publication in the St. Anthony 24
Bulletin. 25
26
Motion by Councilmember Gray, seconded by Councilmember Stille, to approve Second 27
Reading of Ordinance 2015-06 Approving CenturyLink Franchise Agreement granting a 28
franchise to Qwest Broadband Services, Inc. DBA CenturyLink, to construct, operate, and 29
maintain a cable communications system in the City of St. Anthony; setting forth conditions 30
accompanying the grant of the franchise; providing for regulation and use of the system and the 31
public rights-of-way in conjunction with the City’s right-of-way ordinance, if any, and 32
prescribing penalties for the violation of the provisions herein. 33
34
Motion carried unanimously 35
36
B. Ordinance 2015-07 an ordinance Setting Sewer, Water and Storm Water Charges for 37
2016. 38
39
City Manager Casey reviewed the second of three readings of an ordinance Setting Sewer, Water 40
and Storm Water Charges for 2016. The first reading was held at the November 10, 2015 St. 41
Anthony City Council meeting. Since the first reading, the City has received no calls or written 42
comments. 43
44
The third reading and adoption of the ordinance is scheduled for December 8 2015. Following 45
the adoption of the ordinance, the ordinance will be published in the St. Anthony Bulletin. The 46
ordinance will become effective January 1, 2016. 47
48
2
Motion by Councilmember Stille, seconded by Councilmember Brever, to approve Second 1
Reading of Ordinance 2016-07 Setting Sewer, Water and Storm Water Charges for 2016 an 2
ordinance amending Sections 33.018 sewer charges to owners; 33.036 water charges to owners 3
and 33.090 charges for storm water facilities for St. Anthony Village effective January 1, 2016. 4
5
Motion carried unanimously 6
7
C. Presentation of St. Anthony Police Reserve Program 8
9
Police Sgt. Jeff Spiess provided an update on the St. Anthony Police Reserve Program. Sgt. 10
Spiess noted the summer time is always a very busy time for the Reserve Officers. They are 11
present at many community events especially Village Fest. They logged in over 200 hours for the 12
State Fair doing traffic control and parking assistance. The Reserve Officers were present at 13
many school events. 14
15
Sgt. Spiess stated he has been involved in the Reserve Program for eight years. One of the 16
biggest challenges he has had is turnover. This year, six were lost within a month. They moved 17
onto become full time Police Officers. The Police Field Training Officers will be used to train 18
the Reserve Officers as a solution to that problem. A training manual was developed. This was a 19
huge success for the program. Three recent graduates from the program were present at the 20
meeting. The Program is a great benefit to both the participants and the City. 21
22
Trent Studer, Brandon Hess, and George Oyoo introduced themselves stating their background 23
and desire to become Police Officers. 24
25
Councilmember Jenson thanked the Police Reserves for coming to the meeting and their interest 26
in becoming Police Officers. 27
28
Mayor Faust stated the problem of losing the Reserve Officers was solved very well with the 29
pairing up of the Officers with the Police Field Training Officers. This is a great example of 30
professional development. This is indeed a tangible asset. Mayor Faust welcomed Trent, 31
Brandon and George to the City. He stated each presented themselves very well. The Program 32
has the full support of the Council, City Staff and residents. 33
34
VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS. 35
36
City Manager Casey noted with the end of the year there are some terms expiring on two 37
Commissions. He noted Chair Crone, Commissioners Heinis and Poucher are leaving the 38
Planning Commission and Jeff Fahrenholz who is leaving the Parks Commission. He thanked 39
them for their service to the community. 40
41
Mayor Faust thanked all for their service. 42
43
VIII. COMMUNITY FORUM. 44
45
Mayor Faust invited residents to come forward at this time and address the Council on items that 46
are not on the regular agenda. Hearing none, Mayor Faust moved forward with the agenda. 47
48
3
IX. INFORMATION AND ANNOUNCEMENTS. 1
2
Councilmember Stille noted on November 29, he attended the Sustainability Fair at Silverwood. 3
He stated the attendance to the Fair was great, the quality of the Fair was excellent, and a good 4
community gathering. On November 23, he attended the Planning Commission Meeting as the 5
City Council Liaison. Mayor Faust asked City Manager Casey if the Comprehensive Plan has 6
been linked to the Met Council on the City website. Mr. Casey replied not yet but it will be 7
done. 8
9
Councilmember Gray stated he had no report. 10
11
Councilmember Brever stated on November 28, she attended the LMC Metro Cities Regional 12
Meeting. She also attended the Sustainability Fair and it was very informative. Last Sunday, she 13
attended the Sister City Annual Meeting. 14
15
Councilmember Jenson stated on November 18, he attended the Kiwanis Meeting and History 16
Committee Meeting. He attended the LMC Metro Cities Regional Meeting on November 28 17
along with Councilmember Brever. 18
19
Mayor Faust stated he attended the LMC Metro Cities Meeting. He attended the Sustainability 20
Fair on November 19, which was the 4th Annual Fair. It was the most people he had seen 21
attending the Fair. Mayor Faust wished everyone a Happy Thanksgiving. 22
23
X. ADJOURNMENT. 24
25
Mayor Faust adjourned the meeting at 7:35 p.m. 26
27
Respectfully submitted, 28
Debbie Wolfe 29
TimeSaver Off Site Secretarial, Inc. 30
31
_ _ 32
ATTEST: ________________________________ Mayor 33
City Clerk 34
35
4
Saint Anthony Village
DATE: December 8, 2015 Approved:
TO: Mayor and Councilmembers
FROM: License Clerk
ITEM: License and Permits for Approval:
Mechanical License:
Jack Pixley Sweeps, Andover, MN
Liberty Comfort Systems, Anoka, MN
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City of St Anthony Village CITY OF ST ANTHONY CHECK REGISTER Page: 1
Check Issue Dates: 11/20/2015 - 12/9/2015 Dec 02, 2015 10:53AM
Vendor Number Payee Check Number Check Issue Date Amount
10176 BLUE CROSS BLUE SHIELD 27919 11/20/2015 55,751.46
11798 CENTRAL PENSION FUND LOCAL #49 27920 11/20/2015 2,764.80
10710 ICMA RETIREMENT TRUST 27921 11/20/2015 2,106.00
11813 NCPERS GROUP LIFE INSURANCE 27922 11/20/2015 96.00
12077 SUN LIFE FINANCIAL 27923 11/20/2015 731.00
1010 CLEAR RIVER BEVERAGE COMPANYMPANY 27924 11/25/2015 335.00
1060 FAIR STATE BREWING COOPERATIVE 27925 11/25/2015 460.00
12224 HALLER/LAURA 27926 11/23/2015 151.60
10054 ALLIANCE MECHANICAL 27927 12/09/2015 227.50
1054 AMERICAN BOTTLING CO 27928 12/09/2015 384.84
1100 ARTISIAN BEER COMPANY 27929 12/09/2015 5,679.10
10115 ASPEN MILLS 27930 12/09/2015 148.80
1101 BAUHAUS BREW LABS LLC 27931 12/09/2015 700.00
1013 BELLBOY CORPORATION 27932 12/09/2015 4,848.62
1014 BELLBOY CORPORATION 27933 12/09/2015 82.75
1035 BERNICK'S BEVERAGE & VENDING 27934 12/09/2015 412.90
11771 BLUE TARP FINANCIAL 27935 12/09/2015 64.25
1029 BOOM ISLAND BREWING COMPANY LLC 27936 12/09/2015 187.00
10185 BOUND TREE MEDICAL LLC 27937 12/09/2015 18.99
8544 BOURGET IMPORTS 27938 12/09/2015 262.00
10187 BOYER TRUCKS, INC.27939 12/09/2015 59.89
10197 BRIAN NELSON INSPECTION SVCS 27940 12/09/2015 712.50
10216 BUREAU CRIMINAL APPREHENSION 27941 12/09/2015 240.00
10229 CALIBRE PRESS LLC 27942 12/09/2015 357.00
1114 CANNON RIVER WINERY 27943 12/09/2015 390.00
1017 CAPITOL BEVERAGE SALES 27944 12/09/2015 29,534.77
1058 CASTLE DANGER BREWERY 27945 12/09/2015 1,075.60
12150 CITY OF NEW BRIGHTON 27946 12/09/2015 6,267.29
10293 CITY OF ROSEVILLE 27947 12/09/2015 7,641.72
1010 CLEAR RIVER BEVERAGE COMPANYMPANY 27948 12/09/2015 1,418.66
1021 COCA COLA REFRESHMENTS USA, INC.27949 12/09/2015 1,556.19
10332 COMPTON'S COMMERCIAL CLNG. INC 27950 12/09/2015 3,578.00
10338 CONNELLY ELECTRONICS 27951 12/09/2015 743.15
1042 CRYSTAL SPRINGS ICE 27952 12/09/2015 203.01
10438 D ROCK CENTER & SMALL ENG 27953 12/09/2015 45.36
10437 DRIVER & VEHICLE SERVICES 27954 12/09/2015 20.75
10437 DRIVER & VEHICLE SERVICES 27955 12/09/2015 20.75
11978 ECM PUBLISHERS INC 27956 12/09/2015 428.40
1045 EXTREME BEVERAGE 27957 12/09/2015 34.90
1060 FAIR STATE BREWING COOPERATIVE 27958 12/09/2015 460.00
10508 FERGUSON WATERWORKS 27959 12/09/2015 144.83
11783 FIRE EQUIPMENT SPECIALTIES INC 27960 12/09/2015 10,583.95
10522 FIRST-SHRED 27961 12/09/2015 33.00
10523 FISCHER/MERLE 27962 12/09/2015 125.00
1030 FLAHERTY'S HAPPY TYME COMPANY 27963 12/09/2015 354.60
10526 FLEETPRIDE 27964 12/09/2015 192.35
10550 G & K SERVICES INC 27965 12/09/2015 683.57
10571 GOLIATH HYDRO-VAC, INC.27966 12/09/2015 2,265.00
10585 GRAINGER 27967 12/09/2015 18.75
1032 GRAPE BEGINNINGS, INC.27968 12/09/2015 90.25
10636 HEDBACK, ARENDT & CARLSON PLLC 27969 12/09/2015 3,500.00
10673 HEWLETT PACKARD COMPANY 27970 12/09/2015 883.06
1019 HOHENSTEIN'S, INC 27971 12/09/2015 4,287.05
7
City of St Anthony Village CITY OF ST ANTHONY CHECK REGISTER Page: 2
Check Issue Dates: 11/20/2015 - 12/9/2015 Dec 02, 2015 10:53AM
Vendor Number Payee Check Number Check Issue Date Amount
10684 HOME DEPOT CREDIT SERVICES 27972 12/09/2015 93.45
1027 INDEED BREWING COMPANY 27973 12/09/2015 1,309.00
10726 INLAND REAL ESTATE CORPORATION 27974 12/09/2015 2,520.32
11754 INTEGRATED LOSS CONTROL, INC.27975 12/09/2015 586.00
1016 JJ TAYLOR DISTRIBUTING 27976 12/09/2015 29,655.83
1004 JOHNSON BROTHERS LIQUOR CO.27977 12/09/2015 8,495.75
1005 JOHNSON BROTHERS LIQUOR COMPANY.27978 12/09/2015 5,594.82
1006 JOHNSON BROTHERS LIQUOR COMPANY.27979 12/09/2015 7,396.62
1044 JOHNSON BROTHERS LIQUOR COMPANY.27980 12/09/2015 2,177.29
12130 LATOUR CONSTRUCTION INC 27981 12/09/2015 89,945.47
12151 LAWSON PRODUCTS 27982 12/09/2015 31.80
10851 LILLIE SUBURBAN NEWSPAPER 27983 12/09/2015 550.00
10882 MAMA 27984 12/09/2015 110.00
12226 MCDONOUGH LANDSCAPING INC 27985 12/09/2015 884.00
10929 METRO SATELLITE 27986 12/09/2015 234.54
10931 METROPOLITAN COUNCIL - WASTEWATER 27987 12/09/2015 49,448.42
11031 MINNESOTA DEPT OF AGRICULTURE 27988 12/09/2015 25.00
11032 MINNESOTA DEPT OF HEALTH 27989 12/09/2015 3,711.00
10985 MINNESOTA FIRE SERVICE 27990 12/09/2015 20.00
1052 NEEDHAM DISTRIBUTING CO INC 27991 12/09/2015 486.00
1051 NEW FRANCE WINE COMPANY 27992 12/09/2015 805.50
11137 NORTHEASTER NEWSPAPER 27993 12/09/2015 499.00
1033 NORTHGATE BREWING 27994 12/09/2015 200.00
11163 OFFICE DEPOT 27995 12/09/2015 186.57
11185 PACE ANALYTICAL SERVICES, INC.27996 12/09/2015 330.00
11186 PAETEC 27997 12/09/2015 61.46
1012 PAUSTIS & SONS 27998 12/09/2015 1,749.40
1001 PHILLIPS WINE & SPIRITS 27999 12/09/2015 4,751.00
1002 PHILLIPS WINE & SPIRITS 28000 12/09/2015 7,045.63
11241 POSTMASTER - MPLS BMEU 28001 12/09/2015 225.00
11246 PRAXAIR 28002 12/09/2015 39.02
12008 PREMIER LIGHTING 28003 12/09/2015 2,450.16
12215 SENTYRZ/WALTER 28004 12/09/2015 110.57
11399 SHI INTERNATIONAL CORPORATION.28005 12/09/2015 243.00
12227 SHUN/GARY 28006 12/09/2015 410.00
11408 SIGNATURE CONCEPTS, INC.28007 12/09/2015 211.16
1055 SOCIABLE CIDER WERKS 28008 12/09/2015 900.00
11425 SORBY/JAN 28009 12/09/2015 125.00
1036 SOUTHERN - WCW 28010 12/09/2015 250.56
1026 SOUTHERN LIQUOR 28011 12/09/2015 2,265.19
1024 SOUTHERN WINE & SPIRITS - LAKES DIVISION 28012 12/09/2015 2,312.94
1008 SOUTHERN WINE-SPIRITS-AMERICAN DIVISION 28013 12/09/2015 1,148.55
11457 ST ANTHONY VILLAGE CENTER, LLC 28014 12/09/2015 2,081.79
2001 STEEL TOE BREWING 28015 12/09/2015 369.50
12123 SUMMIT COMPANIES 28016 12/09/2015 170.00
11549 TERMINAL SUPPLY CO.28017 12/09/2015 46.73
1031 TIN WHISKERS BREWING COMPANY 28018 12/09/2015 266.60
1040 TRUE FABRICATIONS, INC.28019 12/09/2015 895.44
11637 UNITED ELECTRIC COMPANY 28020 12/09/2015 150.10
11848 UNITED RENTALS 28021 12/09/2015 1,075.07
12225 UTILITY TRUCK SERVICES 28022 12/09/2015 572.40
11674 VERIZON WIRELESS 28023 12/09/2015 1,292.96
11678 VESSCO INC 28024 12/09/2015 447.67
8
City of St Anthony Village CITY OF ST ANTHONY CHECK REGISTER Page: 3
Check Issue Dates: 11/20/2015 - 12/9/2015 Dec 02, 2015 10:53AM
Vendor Number Payee Check Number Check Issue Date Amount
1025 VINOCOPIA 28025 12/09/2015 2,403.87
1034 WINE COMPANY/THE 28026 12/09/2015 2,840.10
1038 WINE MERCHANTS INC 28027 12/09/2015 1,740.45
1011 WIRTZ BEVERAGE - (GRIGGS)28028 12/09/2015 6,003.27
1009 WIRTZ BEVERAGE MINNESOTA 28029 12/09/2015 757.22
1018 WIRTZ BEVERAGE MINNESOTA 28030 12/09/2015 11,958.15
11740 XCEL ENERGY 28031 12/09/2015 9,455.68
6540 Z WINES USA LLC 28032 12/09/2015 82.50
Grand Totals: 425,566.48
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REQUEST FOR COUNCIL CONSIDERATION
Meeting Date: December 8, 2015
Resolution-Directing Hennepin County Auditor to Cancel Special Assessment of 3104 Edgemere
Avenue Payable Beginning 2016
OVERVIEW:
Please note that in preparing the 2014 assessment roll for submission to the County, 3104 Wendhurst
Avenue was removed from the roll as prepaid instead of 3104 Edgemere Avenue. As the property’s
assessments were of equal amounts, the total assessment amount expected was not affected. The
error was noticed during a filing for Homestead Credit by 3104 Wendhurst Avenue. The owners of
the property were aware of the assessment and requested that it be certified vs prepaying. The
Owner of 3104 Edgemere Avenue will be reimbursed by the City for the $648.99 assessment
installment billed with his 2015 property taxes.
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CITY OF ST. ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-069
A RESOLUTION DIRECTING THE HENNEPIN COUNTY AUDITOR TO CANCEL
THE SPECIAL ASSESSMENT FOR 3104 EDGEMERE AVENUE PAYABLE
BEGINNING 2016
WHEREAS, On February 25th, 2014 the City Council adopted and confirmed the
assessments for the 2014 Street and Utility Improvement Project, collectible
beginning in 2015; and
WHEREAS, the property owner at 3104 Edgemere Avenue paid their assessment in full on
October 6th, 2014; and
WHEREAS, the full assessment amount was erroneously certified to Hennepin County
Auditor as a Special Assessment due and payable beginning in 2015.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Saint
Anthony Village hereby directs the Hennepin County Auditor to cancel Levy Number 18813
for 3104 Edgemere Avenue payable beginning 2016.
Adopted this 8th day December, 2015.
____________________________
Jerome O. Faust, Mayor
ATTEST:____________________________
Nicole Miller, City Clerk
Reviewed for administration: ____________________________
Mark Casey, City Manager
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CITY OF SAINT ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-070
A RESOLUTION APPROVING 2016 SALARY OF
MARK CASEY, ST. ANTHONY VILLAGE CITY MANAGER
WHEREAS, the City of St. Anthony Village employs Mark Casey as its City Manager;
and
WHEREAS, the City Council and City Manager have agreed to a 2016 salary of
$140,000.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of St.
Anthony Village hereby authorizes an annual salary of $140,000 for City Manager Mark
Casey, effective January 1, 2016.
Adopted this 8th day of December, 2015.
_____________________________
Jerome O. Faust, Mayor
ATTEST:____________________________
Nicole Miller, City Clerk
Reviewed for administration: ______________________________
Mark Casey, City Manager
15
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CITY OF ST. ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-071
A RESOLUTION AUTHORIZING TRANSFERS AND CLOSING OF SPECIFIED FUNDS
WHEREAS, each year staff budgets certain operating and debt service transfers between
funds; and
WHEREAS, each year, staff evaluates existing funds and identifies those funds in which all
activity has concluded and obligations have been satisfied; and
WHEREAS, Capital Projects should be closed when all activity has concluded; any residual
money and all assets should be transferred to the associated debt service fund or
a capital project fund reserved for public projects and if a deficit exist, funding
must be provided.
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of St. Anthony here
approves the transfer of any funds noted, but subject to closing adjustments as needed:
From Fund Amount To Fund
Capital and Operating Transfers:
General Annual Rent (101)$78,650 Community Center (601)
General Fund (101)$86,300 Severance Fund (901)
General Fund (101)$82,239 HRA Fund (301)
Revolving Improvement Fund (509)$90,000 Capital Equipment (401)
Revolving Improvement Fund (509)$77,211 General Fund (101)
Revolving Improvement Fund (509)$100,000 2014 Street Improvement Fund (521)
Community Center (601)$25,000 Building Improvement (510)
Utility Fund (701)$15,000 Capital Equipment (401)
Water Filtration (704)$50,000 General (101)
Water Filtration (704)$50,000 Capital Equipment (401)
Water Filtration (704)$70,564 Building Improvement (510)
Liquor (705)$67,849 General (101)
Liquor (705)$108,200 Capital Equipment (401)
Liquor (705)$73,000 Building Improvement (510)
Debt Service Transfers:
Walmart TIF Improvement (330)$373,200 2006 TIF Revenue Bond (335)
Walmart TIF Improvement (330)$214,000 2007 TIF Revenue Bond (336)
Stormwater Improvement Fund (702)$25,000 2008 Debt Service (365)
Revolving Improvement Fund (509)$7,500 Road Imp. Debt Service Fund (503)
Closing Transfers:
General Fund (101)$121,354 HRA Projects Fund (319)
MSA Bond Fund (207)$5,104 Road Imp. Debt Service Fund (503)
HRA Projects Fund (319)$70,000 HRA Fund (301)
2013 Street Improvement Fund (519)$189,000 2013 Street Improvement Bond Fund (520)
Revolving Improvement Fund (509)$195,000 Salo Park Improvement Fund (350)
17
Adopted this 8th day of December, 2015.
______________________________
Jerome O. Faust, Mayor
ATTEST: ______________________________
Nicole Miller, City Clerk
Reviewed for Administration: ______________________________
Mark Casey, City Manager
18
REQUEST FOR COUNCIL CONSIDERATION
Meeting Date: December 8, 2015
Resolution-Approving the 2016 Contract with Greater Metropolitan Housing Corporation (GMHC)
OVERVIEW:
Please find attached the contract for 2016 with the Greater Metropolitan Housing Corporation
(GMHC). The City of Saint Anthony Village and Greater Metropolitan Housing Corporation started
this contract relationship in 2002. The cost for the annual contract is $12,500. The fee has remained
the same since 2009.
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CONSULTANT SERVICES AGREEMENT
THIS IS AN AGREEMENT entered into the _____ day of ________, 20__, by and
between the City of Saint Anthony Village, a Minnesota municipal corporation, (“the City”), and
GREATER METROPOLITAN HOUSING CORPORATION, a Minnesota non-profit
corporation (“Consultant”).
RECITALS
A. The Consultant has a division called The Housing Resource Center (“HRC”).
GMHC has agreed to provide certain Services through HRC (as defined below) in connection
with the City’s housing program.
B. The City desires to hire the Consultant to render this technical, professional, and
marketing assistance in connection with housing programs in the City for the term as set forth in
this Agreement.
C. Consultant is willing to provide such services on the terms and conditions set
forth herein.
In consideration of the foregoing recitals and following terms, conditions and mutual
promises contained herein, the parties agree as follows:
1. Scope of Services. The Consultant shall provide services as follows (the
“Services”):
a. Administer the following home improvement programs for residents of the City
of St. Anthony Village:
MHFA Fix-up Fund
Saint Anthony Village Rebate Incentive Program and Saint Anthony Village
Revolving Loan Program. Each Saint Anthony Village program fund shall be
maintained separately. Program income from the Revolving Loan Fund shall be
held and is not available for use without prior approval of the City Council:
1. Providing information to residents and property owners about the
programs, upon request; assisting the City in marketing programs through
various mediums;
2. Assist the City in developing procedures for the programs;
3. Receipt of applications from residents;
4. Processing applications;
5. Closing loans to qualified applicants in accordance with the applicable
program;
21
6. Overseeing the draw process for the funds, including, as necessary,
reviewing draws, reviewing the progress of the work and collecting lien
waivers and certificates of occupancy. Consultant may, for this purpose,
rely on third-party representations and certifications.
7. Provide monthly reports about the number of loans closed and the balance
in each loan program.
b. Assist City residents considering rehabilitation, including property visits, meet
with homeowners and potential contractors, suggest alternatives for rehabilitation
to homeowners, educate homeowners on the construction bid process, assist
homeowners to evaluate bids and work completed and construction progress.
c. Provide housing information to City residents, including information on
emergency assistance, housing rehabilitation, first time homebuyers, limited
rental information; and the Aging in Place demonstration project;
d. Assist the City in developing programs to purchase and rehabilitate homes;
e. Coordinate these services out of Consultant’s Minneapolis office; and
f. Have Consultant’s staff visit residences as determined necessary by Consultant.
2. Term. This Agreement shall be in full force and effect from January 1, 2016 and
shall continue through December 31, 2016, unless otherwise terminated as set forth below.
3. Compensation. For services provided under this Agreement, the City shall pay to
the Consultant Twelve Thousand Five Hundred Dollars ($12,500.00) within thirty (30) days after
execution of this Agreement.
The Consultant shall receive compensation for administering the MHFA Programs directly from
the Minnesota Housing Finance Agency and not from the City.
4. Termination. Notwithstanding any other provision hereof to the contrary, this
Agreement may be terminated as follows:
a. The parties, by mutual written agreement, may terminate this Agreement at any
time in which case the parties shall agree to the amount of fees payable to
Consultant.
b. The City may terminate this Agreement upon the breach by Consultant of any of
its material covenants contained herein, where such breach shall have continued
for a period of thirty (30) days following the receipt by Consultant of a written
notice from the City, specifying the alleged breach; provided, however, if the
nature of a non-monetary breach is such that Consultant cannot reasonably cure
same in the thirty (30) day period, Consultant shall not be deemed to be in breach
if it commences to cure within the thirty (30) day period, and diligently pursues
22
same to completion within ninety (90) days following receipt by Consultant of
such written notice. In the event of termination by the City hereunder, Consultant
shall be entitled to fees due to the date the notice of breach is sent by the City.
c. If Consultant or City (as applicable) (i) files a voluntary petition in bankruptcy
(ii) files a voluntary petition for reorganization under any bankruptcy law, statute
or regulation or other similar statute or regulation, (iii) is adjudicated a bankrupt,
(iv) makes an assignment for the benefit of creditors or applies for or consents to
the appointment of a receiver or trustee as part of or in conjunction with a
“creditor plan” with respect to any substantial part of its assets, or (v) a receiver or
trustee is appointed, or an attachment or execution levied with respect to any
substantial part of its assets, and said appointment is not vacated, or the
attachment or execution not released, within sixty (60) days, then this Agreement
shall, effective as of such date, without notice or further action by either party,
immediately terminate.
d. Consultant may terminate this Agreement upon the breach by City of any of its
material covenants contained herein, where such breach shall have continued for a
period of thirty (30) days following the receipt by City of a written notice from
Consultant, specifying the alleged breach; provided, however, if the nature of a
non-monetary breach is such that City cannot reasonably cure same in the thirty
(30) day period, City shall not be deemed to be in breach if it commences to cure
within the thirty (30) day period, and diligently pursues same to completion
within ninety (90) days following receipt by City of such written notice. In the
event of termination by Consultant hereunder. Consultant shall be entitled to
retain the entire fee under this Agreement.
5. Insurance.
a. During the term of this Agreement, the Consultant shall obtain and maintain
workers compensation, comprehensive general liability, and automobile liability
insurance. Comprehensive general liability insurance shall have an aggregate
limit of Two Million Dollars ($2,000,000.00).
b. Upon request by the City, the Consultant shall provide a certificate or certificates
of insurance relating to the insurance required. Such insurance secured by the
Contractor shall be issued by insurance companies licensed in Minnesota. The
insurance specified may be in a policy or policies of insurance, primary or excess.
c. Such insurance shall be in force on the date of execution of an Agreement and
shall remain continuously in force for the duration of the Agreement.
6. Indemnification.
a. Notwithstanding anything to the contrary in this Agreement, the City, its officers,
agents, and employees shall not be liable or responsible in any manner to the
23
Consultant, the Consultant’s successors or assigns, the Consultant’s subcontractors,
or to any other person or persons for any third party claim, demand, damage, or
cause of action of any kind, nature, or character, including intentional acts, arising
out of or by reason of the performance of this Agreement by Consultant. The
Consultant, and the Consultant’s successors or assigns, agree to protect, defend and
save the City, and its officers, agents, and employees, harmless from all third party
claims, demands, damages, and causes of action, to the extent caused by the
negligence or wrongful acts of Consultant, and the costs, disbursements, and
expenses of defending the same, including but not limited to, attorneys fees,
consulting services, and other technical, administrative or professional assistance.
b. Nothing in this Agreement shall constitute a waiver or limitation of any immunity or
limitation of any immunity or limitation on liability to which the City is entitled
under Minnesota Statutes, Chapter 466, or otherwise.
7. Assignment. This Agreement shall not be assigned, sublet, or transferred, in
whole or in part without the prior written approval of the City.
8. Conflict of Interest. The Independent Contractor shall use best efforts to meet
all professional obligations to avoid conflicts of interest and appearances of impropriety in
representation of the City. In the event of a conflict, the Independent Contractor, with the prior
written consent of the City, shall arrange for suitable alternative services.
9. Compliance with Laws. The Consultant shall comply with all applicable
Federal, State, and local laws, rules, ordinances, and regulations at all times and in the
performance of the services pursuant to this Agreement.
10. Notices. Any notices permitted or required by this Agreement shall be deemed
given when personally delivered or upon deposit in the United States mail, postage fully prepaid,
certified, return receipt requested, addressed to:
Consultant: Greater Metropolitan Housing Corporation
15 South 5th Street, Suite 710
Minneapolis, MN 55402
ATTN: Suzanne Snyder
City: City of Saint. Anthony Village
3301 Silver Lake Road
Saint Anthony, MN 55418-1699
Or such other address as either party may provide to the other by notice given in accordance with
this provision.
11. Entire Agreement. This Agreement, any attached exhibits and any addenda or
amendments signed by the parties shall constitute the entire agreement between the City and the
24
Consultant, and supersedes any other written or oral agreements between the City and the
Consultant. This Agreement can only be modified in writing signed by the City and the
Consultant.
12. Third Party Rights. The parties to this Agreement do not intend to confer on
any third party any rights under this Agreement.
13. Counterparts. This Agreement may be signed in one or more counterparts but
all of which taken together shall constitute one instrument.
14. Choice of Law and Venue. This Agreement shall be governed by and construed
in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims
arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all
parties to this Agreement waive any objection to the jurisdiction of these courts, whether based
on convenience or otherwise.
15. Agreement Not Exclusive. The City retains the right to hire other housing program
consultants, in the City’s sole discretion.
16. Data Practices Act Compliance. Data provided to the Consultant or created by
the Consultant under this Agreement shall be administered in accordance with the Minnesota
Government Data Practices Act, Minnesota Statutes, Chapter 13, as amended.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by
their duly authorized officials, this Agreement on the respective dates indicated below.
CITY:
CITY OF SAINT ANTHONY VILLAGE
By:
Its: Mayor
Date: ____________________, 20__.
CONSULTANT:
GREATER METROPOLITAN HOUSING CORPORATION
By:
Its: President
Date: ____________________, 20__.
26
CITY OF SAINT ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-072
A RESOLUTION APPROVING THE 2016 CONTRACT WITH GREATER
METROPOLITAN HOUSING CORPORATION (GMHC)
WHEREAS, the City of Saint Anthony Village agrees to contract with Greater Metropolitan
Housing Corporation (GMHC) for the implementation of housing programs for
Saint Anthony Residents; and
WHEREAS, the housing programs will be provided to the residents of Saint Anthony Village
through the Housing Resource Center – Northeast; and
WHEREAS, the housing programs provided by GMHC allow for a variety of affordable and
life-cycle housing for the residents of Saint Anthony Village; and
WHEREAS, the housing programs provided by the GMHC also assists the City in its goal of
quality housing, thereby providing opportunities for home ownership; and
WHEREAS, the City of Saint Anthony agrees to contribute to the Housing Resource Center –
Northeast Community Reinvestment Fund to benefit the residents of the City of
Saint Anthony Village.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Saint Anthony
Village hereby approves the contract with Greater Metropolitan Housing Corporation and an
administrative fee of $12,500 for 2016 with that said funding to come from the HRA General
Fund.
Adopted this 8th day of December, 2015.
______________________________________
Jerome O. Faust, Mayor
ATTEST:____________________________
Nicole Miller, City Clerk
Review for Administration: _____________________________________
Mark Casey, City Manager
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28
M E M O R A N D U M
DATE: December 8, 2015
TO: Honorable Mayor and City Council
Mark Casey, City Manager
FROM: Shelly Rueckert, Finance Director
ITEM: GENERAL FUND BUDGET/LEVY
At the July 31st work session, the City Council and Staff reviewed the 2016 Preliminary Levy,
2016 General Fund Budget and 2016 Liquor operations. The 2016 Road Improvements and Debt
levy were reviewed at the June 29th 2015 work session. The 2016 Utility Fund Budgets/Rates
were reviewed at the November 2nd work session and were subject to a public hearing at the
November 10th City Council meeting. The 2016 -2032 Capital Improvement Budgets were
reviewed at the November 30th work session. Additionally, public meetings were held April
28nd, August 25th and September 8th for public input on the budget process.
Based on this process with the Council, Staff has presented 2016 levies totaling $6,050,812.
This represents a $219,075 increase which equates to a 3.76% percent increase compared to
2015 levies.
The parameters for preparing the General Fund Budget and Levy include:
City revenues budgeted using current run rates for sources that are subject to trends
and conservative baseline estimates for re-occurring aids and charges for services
Liquor transfer reduced to match current operating results
Expenses budgeted at amounts that will maintain present level of City services
Each year the General Fund revenue and expenditure budget line items are examined for
changes in expected collections/charges, labor adjustments, changes in contract rates,
insurance rates, utility costs, usage of various materials or needs, etc. The findings of this
examination produce the drivers associated with the proposed 1.93% increase in the General
Fund Levy - see below:
Personnel costs - 73% of General Fund expenditures*, overall costs up 2.92%
Union contract increases 2.5%
Health Insurance premiums up 11.5%
Union Longevity, Steps, shared HR, Workman’s compensation rates
29
Contracted services - 9% of expenditures, overall costs up 3.05%
Property and liability insurance costs - 4% of expenditures, rates up 5.22%
Pass through costs - 5% of expenditures, costs up 4.39%
Remaining budget line items combined - 9% of expenditures, net costs up 0.34%
* 2016 General Fund Budget for Expenditures is $6,921,304
Impact of a reduction in liquor profits available for transfer was phased in
through the use of one time fees and fund balance, mitigating the general fund
impact by 2.78%
*2016 General Fund Budget for Revenues is $6,936,342
The HRA budget and Levy contains cost drivers similar to the general fund. Conversely this
fund does not have the same resources and transfers available in order to offset cost drivers.
Therefore the proposed Levy increase for the HRA is 5.56% or $7,388.
The 2016 Debt Related Levies are proposed to increase by a combined 1.87% increase over the
2015 combined levies. The $43,537 increase represents a 0.75% increase to the Overall Levy. A
debt levy reduction program (Peak to Plateau) began in 2014 to stabilize the annual increase in
levies created the annual street reconstruction plan. Without the use of resources committed
to this program the impact of 2015 street bonds issued along with existing debt service
requirements would have required a 5.05% increase in the Overall Levy.
The 2016 Capital Funds Levies are proposed to increase by a combined $103,990. This increase
is part of the phase–in plan to recognize that liquor transfers are estimated to be $146,395 less
than 2015. The phase-in approach uses of one time fees and fund balance. The impact of the
Capital levies increase is eased by phase–in approach used within the General Fund Levy.
The components of the 2016 proposed Overall Levy are as follows:
Amount Increase/(Decrease)
General Fund $3,385,370 $ 64,160
CIP $ 80,990 $ 30,990
Road Improvement Debt $1,828,848 $ 37,123
Lease Revenue Bonds $ 387,322 $ 4,450
HRA Levy $ 140,170 $ 7,388
Tax Abatement $ 155,112 $ 1,964
Building Improvement $ 73,000 $ 73,000
$6,050,812 $219,075
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Capital Improvements
For 2016, the median taxable valuation in St. Anthony is $255,000. Based on the median
valuation of $255,000, the “City Portion” of property taxes totals $1,575.19. A breakdown of
the taxes is as follows:
1) General Fund Budget $ 902.20
2) Road Improvements $ 487.39
3) Public Facilities $ 103.22
4) Tax Abatement $ 41.34
5) Capital Improvements $ 41.04
Total $1,575.19
To help offset the cost of operations and capital equipment, Staff seeks Grants and Donations
from Federal, State and private sources.
Recently accepted Grants include:
• Minnesota Public Facilities Authority- Silver Lake Treatment System - $247,442
• Rice Creek Watershed District – Silver Lake Treatment System - $50,000
• Rice Creek Watershed District – Central Park Bio-Filtration System - $50,000
• Hennepin County Recycling Grant-2nd half of 2015 Grant - $10,663
• Kiwanis Club of St Anthony (Police Department) - $500
• Ramsey County Recycling Grant - $5,000
• Public Safety Officer's Disability Grant (FD) - $4,303
At tonight’s Council meeting a resolution needs to be passed adopting the 2016 budgets and
certifying the final tax levy to Hennepin and Ramsey Counties.
Recommendation
Staff recommends that Council approves resolution 15-073 Adopting the 2016 Budget
document and certifying the final Property Tax Levy to Hennepin and Ramsey Counties.
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2016
Proposed Budget
December 8, 2015
2016 Budget Calendar
January 15 & 16, 2015: Goal Setting, Financial Management and Planning.
April 28, 2015: Public Hearing/Provide Residents with an opportunity to have input in the Budget process.
May - June: Staff Meetings with Department Heads – Discussion
on 2016 Operating Budget and evaluating 5 -Year Capital
Equipment needs.
June 29 TH and July 31 st 2015: Financial Planning work sessions.
August 25, 2015 : Presentation of Proposed 2016 Operating
Budget & Property Tax Levy to the City Council
33
2016 Budget Calendar
September 8, 2015: Resolution
Resolution setting the 2016 preliminary property tax levy and General
Fund Budget
Sept-Dec: City Manager & Staff meetings to confirm parameters and estimates used in budgeting process
November 2 nd and 10 th 2015: Utility Budgets and rates reviewed
at work session and presented at public hearing
November 30, 2015: Capital Funds 2012 -2032 Budgets reviewed
at work session
December 8 , 2015: Presentation of 2016 General Fund budget and Overall levy
Adoption of 2016 budget document and final property tax levy
2016 Budget Parameters
City revenues budgeted using current run
rates for sources that are subject to trends and
conservative baseline estimates for re -
occurring aids and charges for services
Liquor transfer reduced to match current
operating results
Expenses budgeted at amounts that will
maintain present level of City services
34
General Fund and Levy
2015 2016 Increase %
General/HRA
Debt Service $5,781,737 $5,896,822 $115,085 1.99%
Capital/Building
Improvements $50,000 $153,990 $103,990 1.77%
Overall Levy $5,831,737 $6,050,812 $219,075 3.76%
Reduction in Liquor profits transferred - $146,395
2016 General Fund Revenues
Tax Levy
51%
Licenses and
Permits
3%
Intergovernmental
Revenue
13%
Contracts
23%
Fines
2%
Miscellaneous
5% Transfers
3%
35
2016 Liquor Sales Projection
Traditional Projection - Prior Years Sales Mix
SALES GM NET INCOME
JAN-JUN 49% 2,741,792 634,452 84,214
JUL-DEC 51% 2,853,702 660,348 87,651
TOTAL 5,595,494 1,294,800 171,865
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Total - Sales
2012 2013 2014 2015
Liquor Transfers Summary
2012 2013 2014 2015 2016
Net Income Before Transfers 524,304 490,396 268,823 171,865 171,865
Adjustments for cash flow available (51,064) (99,856) 186,252 77,184 77,184
Net Income Available for Transfer 473,240 390,540 455,075 249,049 249,049
Transfers Schedule
Transfer to General Fund 305,800 330,800 214,244 214,244 249,049
Transfer to Capital Equipment 204,200 108,200 108,200 108,200 -
Transfer to Building Improvement - - 73,000 73,000 -
Total Transfers 510,000 439,000 395,444 395,444 249,049
Change in year end cash (36,760) (48,460) 59,631 (146,395) -
36
General Fund Levy Relief
Impacts of phased -in of reduced Liquor
Transfers on proposed levy increase:
Absence phase -in: 4.71%
2016 use of remainder one time fees: 2.39%
Use of Fund balance: 1.93%
2016 General Fund Expenditures
Administration,
7%
Finance, 5%
Police, 49% Fire, 16%
Public Works,
14%
Parks, 4%
All Other, 5%
37
2016 Budget- Cost Drivers
Personnel costs: 73% of expenditures, overall costs
up 2.92%
Union contract increases 2.5%
Health Insurance premiums up 11.5%
Union Longevity, Steps, shared HR, Workman’s
compensation rates
Contracted services: 9% of expenditures, overall costs
up 3.05%
Services include: Assessor, Audit, Building Inspections ,
Cable, Elections, IT, Jail, Legal, Planner etc.
2016 Budget- Cost Drivers
Property and liability insurance costs: 4% of
expenditures, rates up 5.22%
Pass through costs: 5% of expenditures, costs up
4.39%
Represents costs incurred and reimbursed by others, for
example New Brighton fuel purchases
Remaining budget line items combined: 9% of
expenditures, net costs up 0.34%
Includes costs for: deductibles , fuels, printing, repairs
and maintenance, street sealcoating and striping,
supplies, training, utilities , etc.
38
2016 Proposed Levies
2015 Actual 2016
Proposed
$ Increase/
Decrease %
General Fund $3,321,210 $3,385,370 $64,160 1.93%
C.I.P. $50,000 $80,990 $30,990 61.98%
Road Improvement
Debt $1,791,725 $1,828,848 $37,123 2.07%
Lease Revenue Bonds $382,872 $387,322 $4,450 1.16%
HRA Levy $132,782 $140,170 $7,388 5.56%
Tax Abatement $153,148 $155,112 $1,964 1.28%
Building Improvement $0 $73,000 $73,000 N/A
Total $5,831,737 $6,050,812 $219,075
Total Percent Change 3.76%
2016 Property Tax Distribution
County, 24%
City , 35%
School District,
34%
Other Taxing
Districts , 7%
39
Property Taxes 2016
Category Amount Percentage
County $1,090.76 24%
City $1,575.19 35%
School $1,535.37 34%
Other Districts $310.48 7%
Total $4,511.79 100.00%
•Median Single Family Home Value of $255,000 up 14.3%
Distribution of City Taxes
Category Amount
General Fund Levy $902.20
Roads $487.39
Public Facilities $103.22
Tax Abatement $41.34
Capital Improvements $41.04
Total $1,575.19
•Median Single Family Home Value of $255,000 up 14.3%
40
Issuance of Debt/Levy Impact
Issued 2015A Street Improvement Bond Totaling
$2,580,000
◦36th Avenue from Silver Lake Road to Highcrest Road
◦Chelmsford Road from 36 th Avenue to 37 th Avenue
◦Saint Anthony Boulevard mill and overlay from Ridgeway
Parkway to Highway 88
◦Local drainage and alley improvements
2016 average homeowner will pay $487.39
◦Home valued at $255,000
◦$40.62/month for road improvements
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Pre-levy relief: 5.05% increase
With debt levy relief: 0.75% increase
T otal Debt Levy before relief
T otal Debt Levy
after relief
Road levy before
debt relief
Road levy after
relief
Impact of Debt Levy Relief
41
What does the General Fund Levy Support?
The following City services:
◦Administration
◦Police
◦Fire
◦Public Works
◦Finance
◦Parks
2016 average homeowner will pay $902.20
◦Home valued at $255,000
◦$75.18/month for City services
Grants/Donations – Partnerships
Since 1999 to date:
◦City has received $19,807,114
Grants
Donations from local businesses/residents
$2,308 per resident (Based on population of 8,583)
Partnerships:
City of Falcon Heights
City of Birchwood Village
42
Summary of 2016 Budget
General Fund Levy totals $3,385,370
Personnel costs up 2.92%
◦73% of General Fund expenditures
Liquor transfers were reduced by $146,395
◦Initiate a Building improvement levy of
$73,000 in lieu of liquor transfer
Increase CIP levy by $30,990
Increase in all levies totals $219,075 or 3.76%
QUESTIONS?
Call Finance Director: Shelly Rueckert (612) 782 -3316
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44
NOTICE OF A PUBLIC HEARING
Notice is hereby given that on December 8, 2015 at 7:00 p.m. at City Hall, 3301 Silver Lake Road the Saint
Anthony Village City Council will hold a public hearing regarding the 2016 City & HRA Budgets and Final
Levy Certification.
Oral testimony will be accepted on the above subject at this meeting. Written comments may be taken at
the St. Anthony Village City Hall, 3301 Silver Lake Road, St. Anthony Village, Minnesota 55418 until the
date of the hearing. If you have any questions, please contact the Finance Director at 612-782-3316.
Shelly Rueckert
Finance Director
Published: November 25, 2015
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46
CITY OF ST. ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-073
A RESOLUTION SETTING THE FINAL 2016 TAX LEVY AND ADOPTING THE 2016
BUDGET DOCUMENT FOR THE CITY OF ST. ANTHONY VILLAGE
WHEREAS, Minnesota State Law requires that the City of St. Anthony Village provide Hennepin and
Ramsey Counties with a final 2016 certified property tax levy and
WHEREAS, the City Council discussed key financial issues and budgeting goals at the January, 2015,
goal setting session, held a public meeting on April 28, 2015 for input on the budget
process, reviewed the 2016 Road Improvements and 2016 Debt Levy in a work session held
June 29 2015, 2016 Utility Fund Budgets/Rates were reviewed at the November 2, 2015
work session and were the subject of a public hearing at the November 10, 2015 Council
meeting, reviewed the 2016-2032 Capital improvement Budgets were reviewed at the
November 30th work session, public meetings were held August 25, 2015 and September 8,
2015 for public input on the 2016 budget.
WHEREAS, the allowed Debt Levies will be reduced by $301,921; and
WHEREAS, The City Council held the required Truth in Taxation meeting on Tuesday, December 8,
2015, 7:00 P.M. in its Council Chambers, to discuss the 2016 budget and property tax levy
with the residents of St. Anthony Village; and
WHEREAS, the information required for the City Council to determine a Final 2016 property tax levy
has been collected
NOW, THEREFORE, BE IT RESOLVED that:
1) The Final 2016 Property Tax Levy is:
General Operating Levy $3,385,370
Capital Improvement Project Levy $ 80,990
Road Improvement Levy $1,828,848
Lease Revenue Bonds $ 387,322
Housing and Redevelopment Authority Levy $ 140,170
Tax Abatement Levy $ 155,112
Building Improvement Levy $ 73,000
$6,050,812
2) The fund budgets included in the 2016 Budget document be adopted as the final fund budgets
47
Adopted this 8th day of December, 2015.
_________________________________
Jerome O. Faust, Mayor
ATTEST: _________________________
Nicole Miller, City Clerk
Reviewed for administration: _________________________________
Mark Casey, City Manager
48
MEMORANDUM
To: St. Anthony Village Honorable Mayor and City Council
Mark Casey, City Manager
From: Breanne Rothstein, AICP, City Planner
Date: City Council Regular Meeting for December 8, 2015
WSB Project No. 02170-240
Request: Request for an Amendment to an Existing Conditional Use Permit (CUP) to
Allow the sale of alcoholic beverages on the Property Located at 2510
Kenzie Terrace
RECOMMENDATION
The Applicant’s request for an amendment to the existing conditional use permit (CUP) to allow the sale
of alcoholic beverages on the Property located at 2510 Kenzie Terrace is consistent with the intent of
the Zoning Ordinance and the City’s Comprehensive Plan. Staff recommends approval of the Applicant’s
request as outlined below.
The Planning Commission met on November 23, 2015, conducted a public hearing, took public
testimony from two households opposed to the amendment, and recommended approval of the
amendment, subject to the conditions as outlined below.
GENERAL INFORMATION
Applicant: Catrinas II, LLC
Owners: R.J. Ruppert, LLC
Location: 2510 Kenzie Terrace
Existing Land Use / Commercial/zoned: C- Commercial
Zoning:
Surrounding Land North: Low Density Residential / Zoned R-1 - Single Family Residential
Use / Zoning: East: Low Density Residential / Zoned R-1 - Single Family Residential
South: City of Minneapolis (Single Family Residential)
West: Undeveloped / Zoned C-Commercial
Deadline for Agency Application Date: 9-21-15
Action: 60 Days: 11-20-15
Letter Sent: Yes
120 Days: 01-18-16
49
CONSIDERATIONS RELATING TO THE REQUEST
1. Background
The Applicant proposes an intensification of the existing sit down restaurant business located at
2510 Kenzie Terrace. The Property is located immediately adjacent to a residentially zoned district,
with the building located approximately 120 feet from the bordering property line. The request is to
allow for the sale of alcoholic beverages on the premises. The restaurant operation is requesting
the following business hours:
• 6:00am – 10:00pm Sunday through Thursday
• 6:00am – 11:00pm Friday and Saturday
This represents a reduction in the late night hours from the original Busters’ proposal and approved
Conditional Use Permit of 11:00 p.m. on weeknights and 1:00 a.m. on weekends. However, it does
increase the hours of “dine-in” business from 10 p.m. to 11 p.m. on Fridays and Saturdays.
The applicant is not requesting any outdoor seating, forms of entertainment, or any other changes
to the business operations of the restaurant.
The property has an existing CUP formerly utilized by the restaurant “Busters” for the operation of a
restaurant located less than 250 feet from a residential structure or district and a variance from the
parking requirements.
2. Applicable Codes Relating to Conditional Uses.
Title XV Land Usage, Chapter 152 Zoning Code, Section §152.122 PERMITTED CONDITIONAL USES
(WITHIN THE C DISTRICT) (L) states that “Establishments primarily for the sale of beverages for
consumption on the premises” is permitted in the C District only by conditional use permit issued by
the City Council.
3. Criteria for, and Consistency with, Criteria for Conditional Use Permit (CUP) Approval. Title XV
Land Usage, Chapter 152 Zoning Code, Section §152.243 CONDITIONAL USE PERMITS (C) Application
states that a conditional use permit may be granted only by a majority vote of all members of the
City Council after determining that:
1. The use is one of the conditional uses specifically listed for the district in which the property is
located;
The Property at 2510 Kenzie Terrace is located within the C-Commercial Zoning District, which
allows “establishments primarily for the sale of beverages for consumption on the premises” as
a permitted conditional use.
The following conditions are proposed for the amendment to the Conditional Use Permit:
• The Applicant shall submit the appropriate plans and permits for review and approval
before beginning any construction or other alterations that requires a permit (i.e. building
permit for any interior work, sign permit, electrical permit, plumbing permit, etc.).
• An exterior dumpster, if proposed, shall be kept behind the existing southernmost building
and shall be screened pursuant to 150.072 (2) (d) (3) of the City Code. An escrow shall be
established by city staff, and submitted with the city prior to issuance of a certificate of
occupancy to ensure that this condition is met.
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• Outdoor seating associated with the restaurant use is not permitted with this Conditional
Use Permit (CUP). If outdoor seating is desired, an amendment to this Permit is required.
• Any radio receiving set, musical instrument, paging system, or other similar device for the
production or reproduction of sound may not be played outside of the building between the
hours of 10:00pm and 7:00am.
• Any lighting associated with, or added to, the proposed restaurant use or parking lot area
shall be downward casting and shielded.
• Hours of operation shall be limited until 10 p.m. Sunday through Thursday and 11 p.m.
Friday and Saturday night. All delivery vehicles after 10 p.m. must park on the north side of
the building located at 2510 Kenzie Terrace to minimize headlight glare onto the
neighboring single-family residential areas to the south.
• Additional natural landscaping/screening is required along the west side of the existing
easternmost drive-aisle access to/from Lowry Avenue along the south border of the
Property and must be installed by June 1, 2016. Screening shall consist of coniferous shrubs
and/or trees, in a quantity adequate to visually screen as much of the parking lot area as
feasible, and shall be at least three (3) feet in height. All screening must comply with the
City’s vision triangle standards to ensure adequate clear lines of vision at the intersection of
the parking lot drive-aisle to ensure traffic and pedestrian sightlines and safety. An escrow
shall be established by city staff, and submitted with the city prior to the issuance of a
certificate of occupancy to ensure that this condition is met.
2. The City Council has specified all conditions which the City Council deems necessary to make the
use compatible with other uses in the area:
Conditions have been described in the previous Conditional Use Permit and are included in the
resolution amending the conditional use permit under consideration. Criteria met.
3. The use will not be detrimental to the health, safety, or general welfare of persons residing or
working in the vicinity or to the values of property in the vicinity; and
Surrounding land uses in the immediate vicinity include single family residential homes east and
south, high density residential to the northeast, a vacant parcel to the west and commercial
uses and single family residential (Lowry Grove) to the north and northwest. Restaurant uses
have occurred on the Property in past and have been seen as a benefit to the area. The
expansion of the menu to include alcoholic beverages as a menu option is common for a
restaurant operation and will not adversely affect the health, safety, or welfare of the
community. Criteria met.
4. The use will provide a service or a facility which is in the interest of public convenience and will
contribute to the general welfare.
Having a variety of dining options within a community is a convenience that serves the entire
community and surrounding area. The inclusion of offering alcoholic beverages as a menu
option will further expand the convenience the restaurant offers to the local community.
Having dining options within walking distance of your residence is an added benefit that not all
51
areas throughout the community have. Adding a restaurant business will continue to ensure the
space is occupied. Criteria met.
CONCLUSION
The Property has been utilized for commercial uses for the past several decades, and has been in close
proximity to single-family residential land uses. The exterior of the existing buildings on site will not
change in any way, nor will the layout of the existing parking lot. The addition of the sale of alcoholic
beverages is not expected to have an adverse effect on the surrounding neighborhood or a significant
change in the daily business operation.
Having a restaurant continue to occupy a portion of the south building will provide an alternative dining
option for residents within the immediate area and throughout the community and surrounding area.
The location of the site also lends itself well to opportunities for residents and neighbors to walk to the
property as opposed to traveling by vehicle.
RECOMMENDED ACTION
1. Motion to Adopt Resolution Approving the Conditional Use Permit Amendment. The City
Council may refer to the enclosed resolution and may modify the resolution for approval to
include any conditions that it deems necessary.
2. Motion to deny the Conditional Use Permit. In the event the City Council chooses denial of the
requested CUP, it should clearly state its reasons for the denial and direct staff to prepare a
resolution.
3. Motion to table action and request more information from the applicant. It appears that the
applicant has submitted all necessary items for the City Council to make a decision. However,
the Council may wish to table the action and provide direction on additional items that may be
needed to make a decision.
ATTACHMENTS
• Location map
• Application and Supporting Material
• Resolution of Approval
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Exhibit A - Location Map2510 Kenzie Terrace¯0 40 8020Feet
Kenzie
T
e
r
r
a
c
e
Lowry Avenue
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CITY OF SAINT ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-015
RESOLUTION APPROVING A CONDITIONAL USE PERMIT (CUP) TO ALLOW A
RESTAURANT TO BE LOCATED LESS THAN 250 FEET FROM A RESIDENTIALLY
ZONED DISTRICT AND A VARIANCE FROM THE MINIMUM REQUIRED PARKING
STALLS ON THE PROPERTY LOCATED AT 2510 KENZIE TERRACE
WHEREAS, the City of St. Anthony Village received a request from the Applicant Joel
Janssen on behalf of the Owner R.J. Ruppert Trustee for a conditional use permit
CUP) to allow a restaurant to be located less than 250 feet from a residentially
zoned district and a variance from the minimum required parking stalls on the
property located at 2510 Kenzie Terrace on October 14, 2014, legally described
as follows:
Lot 2, Block 1, KENZIE TERRACE ADDITION
WHEREAS, the Property located at 2510 Kenzie Terrace is located within the C -Commercial
Zoning District; and
WHEREAS, restaurants, cafeterias and delicatessens located less than 250 feet from a
residential structure or district are permitted conditional uses with the issuance of
a Conditional Use Permit (CUP) in the C -Commercial Zoning District; and
WHEREAS, the Property located at 2510 Kenzie Terrace is located immediately adjacent to a
residentially zoned district; and
WHEREAS, the site currently has 37 marked parking stalls for shared use between the two
buildings (and three uses) on the Property; and
WHERAS, the proposed restaurant use requires 42 parking stalls for a total of 53 parking
stalls when combined with the other uses existing on site; and
WHEREAS, the Planning Commission reviewed and considered the requests based on the
related documents shown in the Applicant's application in a public hearing at
their regular meeting on November 24, 2014; and
WHEREAS, the City Council reviewed and considered the requests at their regular meeting on
December 9, 2014 based on the related documents, testimony received during the
public hearing, and requested further review by the Planning Commission; and
WHEREAS, the Planning Commission further analyzed the request and considered additional
conditions relating to screening and hours of operation at their regular meeting on
January 26, 2015; and
NOW THEREFORE BE IT RESOLVED that the City Council of the City of St. Anthony
Village approves the Applicant's conditional use permit and variance requests based on the
following findings:
1. The requested conditional use permit (CUP) is consistent with all of the standards for
granting a conditional use permit as described in Section §152.243 of the St. Anthony
58
Village Zoning Code. More specifically, the City Council finds that the required
conditional use permit is justified for the following reasons:
a. The restaurant use is one of the conditional uses specifically listed within the C -
Commercial Zoning District in which the Property is located in.
b. The City has specified all conditions which the City Council has deemed
necessary to make the use compatible with other uses in the area;
c. The additional dining option within close proximity to single-family and high-
density multiple -family residential uses will provide a mixture of uses in the
neighborhood, which will promote walkability and sustainability, which
contributes to the health, safety and welfare of the persons residing or working in
the vicinity; and
d. The proposed restaurant use will provide a service which in the interest of public
convenience and will contribute to the general welfare.
2. The requested variance is consistent with all the standards for granting a variance as
described in Section §152.245 of the St. Anthony Village Zoning Code. More
specifically, the City Council finds that the requested variance is justified for the
following reasons:
a. The Applicant proposes to use the property in a reasonable manner. A restaurant
use is common within commercially zoned districts and has previously been
located on this Property.
b. The site layout in terms of size and location of the existing buildings and parking
lot area will not change with the proposal of locating a restaurant within the
vacant portion of the southernmost building. Limited parking stalls are a
circumstance unique to the Property, and were not created by the Applicant.
c. Granting the variance will not alter the essential character of the locality, as the
Property will remain a commercially zoned property which permits a variety of
uses including restaurant uses.
d. Economic considerations alone are not the basis of the practical difficulties.
e. Granting the variance is consistent with the City's comprehensive land use plan
and is in harmony with the general purposes and intent of the City's Code
relating to protecting the use districts. The use of the Property will remain the
same as it is today.
f. Granting the variance from the minimum required parking stalls will not impact
the amount of adequate light, air and access to Property or neighboring
properties.
g. Allowing the variance is in harmony with the general purposes and intent of the
City's Code relating to preventing congestion in public streets. The project will
have no impact on congestion as both Kenzie Terrace and Lowy Avenue can
59
adequately accommodate the anticipated traffic generated from the commercial
use.
h. Allowing the variance is in harmony with the general purposes and intent of the
City's Code to provide for compatibility of different land uses. The project will
have no impact on land use compatibility, and will encourage walkable and
sustainable neighborhoods through a variety and mixture of uses in close
proximity.
i. Allowing the variance is in harmony with the general purposes and intent of the
City's Code to prevent overcrowding of land and undue concentration of
structures by regulating land, buildings, yards and densities. The variance will
not result in overcrowding or concentration of buildings as the site layout will not
be modified with the proposed restaurant use.
NOW THEREFORE BE IT FURTHER RESOLVED, that the City Council's approval of the
requested conditional use permit and variance is contingent on the following:
1. The Applicant shall submit the appropriate plans and permits for review and approval
before beginning any construction or other alterations that requires a permit (i.e.
building permit for any interior work, sign permit, electrical permit, plumbing permit,
etc.).
2. An exterior dumpster, if proposed, shall be kept behind the existing southernmost
building and shall be screened pursuant to 150.072 (2) (d) (3) of the City Code. A
site plan showing the proposed dumpster and screening location shall be submitted,
reviewed and approved by the City Planner prior to installation.
3. Outdoor seating associated with the restaurant use is not permitted with this
Conditional Use Permit (CUP). If outdoor seating is desired, an amendment to this
Permit is required.
4. Any radio receiving set, musical instrument, paging system, or other similar device
for the production or reproduction of sound may not be played outside of the building
between the hours of 10:00pm and 7:OOam.
5. Any lighting associated with, or added to, the proposed restaurant use or parking lot
area shall be downward casting and shielded. A lighting plan must be submitted,
reviewed and approved by the City Planner prior to installation.
6. Hours of operation shall be limited until 11 pm Sunday through Thursday and 1 am
Friday and Saturday night. The dine -in portion of the restaurant shall cease at lOpm
every night. All delivery vehicles after l Opm must park on the north side of the
building located at 2510 Kenzie Terrace to minimize headlight glare onto the
neighboring single-family residential areas to the south.
Additional natural landscaping/screening is required along the west side of the
existing easternmost drive -aisle access to/from Lowry Avenue along the south border
of the Property. Screening shall consist of coniferous shrubs and/or trees, in a
quantity adequate to visually screen as much of the parking lot area as feasible, and
shall be at least three (3) feet in height. All screening must comply with the City's
60
vision triangle standards to ensure adequate clear lines of vision at the intersection of
the parking lot drive -aisle to ensure traffic and pedestrian sightlines and safety.
Adopted this 10`h day of February, 2015.
Jerome O. Faust, Mayor
ATTEST:
Barbara J. Suciu, City Clerk
Review for Administration: Z
Mark Casey, Q ty Manager
61
62
2510 Kenzie Terrace
Conditional Use Permit Amendment
Request
City Council Meeting
December 8, 2015
2510 Kenzie Terrace
•General Information
Applicant: Luis Caire, Catrina’s II, LLC
Owners: R.J. Ruppert, LLC
Location: 2510 Kenzie Terrace
Existing Land Use Commercial/ Zoned C-Commercial
/ Zoning:
Surrounding Land Use
/ Zoning: North: LDR/ zoned R1
East: LDR / zoned R1
South: City of Minneapolis (SFR)
West: Undeveloped/ zoned C-Commercial
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2510 Kenzie Terrace
•Overview
–Request to open a new Mexican restaurant (1,436 sf)
to intensify restaurant use to include the sale of
alcoholic beverages
–Conditional Use Permit was received in 2014 to allow
for a restaurant less than 250 feet from residential
area
–Parking Variance was received in 2014 to allow for a
reduction to required parking stalls
•37 spaces exist on the Property today
•53 stalls required (all uses on site)
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•Amendment Request includes:
–Reduction in hours from 11:00 p.m. closing to 10
p.m. (Sunday through Thursday) and from 1:00
a.m. to 11:00 p.m. on weekends (original CUP only
allowed deliveries after 10 p.m. – no dine in
service)
–Allowance for a liquor license to serve wine and
beer
–All other terms and conditions would remain the
same as 2014 permit.
2510 Kenzie Terrace
2510 Kenzie Terrace
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2510 Kenzie Terrace
•CUP Criteria Review
–Use is one of the conditional uses specifically listed in
the district;
–City Council has specified all conditions;
–Use will not be detrimental to the health, safety or
general welfare of persons residing or working in the
vicinity;
–Use will provide a service or facility which is in the
interest of public convenience and will contribute to
the general welfare
2510 Kenzie Terrace
•Planning Commission Recommendation
The Planning Commission met on November 23, 2015,
conducted a public hearing, took testimony from the
applicant and two neighbors opposing the amendment. The
Planning Commission recommends approval of the
conditional use permit (CUP) amendment (5 to 1) to allow a
restaurant to pursue a liquor license on the Property located
at 2510 Kenzie Terrace subject to the findings and conditions
outlined in the staff report.
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Conditions
•Building permits
•Outdoor seating prohibited
•Dumpster screening and escrow to complete
•Amplification
•Hours of operation
•Landscaping and escrow (deadline of June 1, 2016
installation)
2510 Kenzie Terrace
Questions?
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CITY OF ST. ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-074
RESOLUTION APPROVING A CONDITIONAL USE PERMIT (CUP)
AMENDMENT TO ALLOW AN INTENSIFICATION OF THE RESTAURANT
USE TO INCLUDE THE SALE OF ALCOHOLIC BEVERAGES ON THE
PROPERTY LOCATED AT 2510 KENZIE TERRACE
WHEREAS, the City of St. Anthony Village received a request from Catrinas II,
LLC on behalf of the Owner R.J. Ruppert Trustee for a conditional use permit
amendment (CUP) to allow the intensification of the approved restaurant use to include
the sale of alcoholic beverages on the property located at 2510 Kenzie Terrace on
September 21, 2015, legally described as follows:
Lot 2, Block 1, KENZIE TERRACE ADDITION
WHEREAS, the Property located at 2510 Kenzie Terrace is located within the C-
Commercial Zoning District; and
WHEREAS, the City Council approved the restaurant use through issuance of a
conditional use permit, with conditions, through Resolution 15-015 on February 10th,
2015; and
WHEREAS, the Planning Commission reviewed and considered a conditional
use permit amendment, based on the related documents shown in the Applicant’s
application in a public hearing at their regular meeting on November 23, 2015 and
recommended approval of the amendment, with conditions; and
NOW THEREFORE BE IT RESOLVED that the City Council of the City of
St. Anthony Village approves the Applicant’s conditional use permit amendment based
on the following findings:
1. The requested conditional use permit (CUP) is consistent with all of the
standards for granting a conditional use permit as described in Section
§152.243 of the St. Anthony Village Zoning Code. More specifically, the
City Council finds that the required conditional use permit is justified for the
following reasons:
a. The proposed use is allowed as a conditional use permit within the
Commercial Zoning District;
b. The City has specified all conditions which the City Council has deemed
necessary to make the use compatible with other uses in the area;
c. The additional dining option within close proximity to single-family and
high-density multiple-family residential uses will provide a mixture of
uses in the neighborhood, which will promote walkability and
69
sustainability, which contributes to the health, safety and welfare of the
persons residing or working in the vicinity; and
d. The proposed restaurant use will provide a service which in the interest of
public convenience and will contribute to the general welfare.
NOW THEREFORE BE IT FURTHER RESOLVED, that the City Council’s
approval of the requested amendment to the conditional use permit is contingent on the
following:
1. The Applicant shall submit the appropriate plans and permits for review and
approval before beginning any construction or other alterations that requires a
permit (i.e. building permit for any interior work, sign permit, electrical
permit, plumbing permit, etc.).
2. An exterior dumpster, if proposed, shall be kept behind the existing
southernmost building and shall be screened pursuant to 150.072 (2) (d) (3) of
the City Code. An escrow shall be established by city staff, and submitted
with the city prior to issuance of a certificate of occupancy to ensure that this
condition is met.
3. Outdoor seating associated with the restaurant use is not permitted with this
Conditional Use Permit (CUP). If outdoor seating is desired, an amendment
to this Permit is required.
4. Any radio receiving set, musical instrument, paging system, or other similar
device for the production or reproduction of sound may not be played outside
of the building between the hours of 10:00pm and 7:00am.
5. Any lighting associated with, or added to, the proposed restaurant use or
parking lot area shall be downward casting and shielded.
6. Hours of operation shall be limited until 10 p.m. Sunday through Thursday
and 11p.m. Friday and Saturday night. All delivery vehicles after 10 p.m.
must park on the north side of the building located at 2510 Kenzie Terrace to
minimize headlight glare onto the neighboring single-family residential areas
to the south.
7. Additional natural landscaping/screening is required along the west side of the
existing easternmost drive-aisle access to/from Lowry Avenue along the south
border of the Property, and must be installed by June 1, 2016. Screening shall
consist of coniferous shrubs and/or trees, in a quantity adequate to visually
screen as much of the parking lot area as feasible, and shall be at least three
(3) feet in height. All screening must comply with the City’s vision triangle
standards to ensure adequate clear lines of vision at the intersection of the
parking lot drive-aisle to ensure traffic and pedestrian sightlines and safety.
An escrow shall be established by city staff, and submitted with the city prior
to issuance of the certificate of occupancy to ensure that this condition is met.
70
Adopted this 8th day of December, 2015.
_______________________________
Jerome O. Faust, Mayor
ATTEST: _________________________
Nicole Miller, City Clerk
Reviewed for administration: _________________________________
Mark Casey, City Manager
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CERTIFICATION OF MINUTES RELATING TO
GENERAL OBLIGATION TAX INCREMENT REVENUE REFUNDING BONDS,
SERIES 2015B
Issuer: City of St. Anthony, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting held on December 8, 2015, at 7:00
p.m., at the City Hall.
Members present:
Members absent:
Documents Attached:
Minutes of said meeting (including):
RESOLUTION NO. 15-075
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $_____________ GENERAL OBLIGATION TAX
INCREMENT REVENUE REFUNDING BONDS, SERIES 2015B
I, the undersigned, being the duly qualified and acting recording officer of the public
corporation issuing the bonds referred to in the title of this certificate, certify that the documents
attached hereto, as described above, have been carefully compared with the original records of
said corporation in my legal custody, from which they have been transcribed; that said
documents are a correct and complete transcript of the minutes of a meeting of the governing
body of said corporation, and correct and complete copies of all resolutions and other actions
taken and of all documents approved by the governing body at said meeting, so far as they relate
to said bonds; and that said meeting was duly held by the governing body at the time and place
and was attended throughout by the members indicated above, pursuant to call and notice of such
meeting given as required by law.
WITNESS my hand officially as such recording officer this _____ day of December,
2015.
_________________________________
City Manager
73
It was reported that _________ proposals for the purchase of $____________ General
Obligation Tax Increment Revenue Refunding Bonds, Series 2015B, were received prior to
_____ p.m., Central time, pursuant to the Official Statement distributed to potential purchasers of
the Bonds by Ehlers & Associates, Inc., financial advisor to the City. The proposals have been
publicly opened, read and tabulated and were found to be as follows:
See Attached
74
Councilmember ______________________ introduced the following resolution and moved its
adoption, which motion was seconded by Councilmember ______________________:
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $__________ GENERAL OBLIGATION TAX INCREMENT
REVENUE REFUNDING BONDS, SERIES 2015B
BE IT RESOLVED by the City Council (the Council) of the City of St. Anthony,
Minnesota (the City), as follows:
SECTION 1. AUTHORIZATION AND SALE.
1.01. Authorization. It is hereby determined to be in the best interests of the City to
issue and sell its General Obligation Tax Increment Revenue Refunding Bonds, Series 2015B in
the aggregate principal amount of $_____________ (the Bonds), pursuant to Minnesota Statutes
Chapters 469 and 475, the proceeds of which will be used to effect an advance refunding, on
August 1, 2016 (the Redemption Date) of the Housing and Redevelopment Authority of the City
(the HRA) Tax Increment Revenue Bonds (Silver Lake Village Project), Series 2006, dated as of
August 1, 2006 (the Refunded Bonds) issued to finance the construction of various public
improvements within Tax Increment District No. 3-5 of the City (the District). The District is in
existence and has not been decertified, and the amount of bonded indebtedness incurred pursuant
to the Tax Increment Financing Plan for the District does not exceed the amount permitted by
Subsection 2-9 thereof.
1.02. Sale. Pursuant to the Terms of Proposal and the Official Statement prepared on
behalf of the City by Ehlers & Associates, Inc., financial advisor to the City, sealed proposals for
the purchase of the Bonds were received at or before the time specified for receipt of proposals.
The proposals have been opened and publicly read and considered, and the purchase price,
interest rates and net interest cost under the terms of each proposal have been determined. The
most favorable proposal received is that of __________________________________________,
in ______________________, ______________________, (the Purchaser), to purchase the
Bonds at a price of $__________________ plus accrued interest, if any, to the date of delivery
and payment on the further terms and conditions hereinafter set forth.
1.03. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor
and City Manager are hereby authorized and directed to execute a contract on behalf of the City
for the sale of the Bonds in accordance with the terms of the proposal. The good faith deposit of
the Purchaser shall be retained and deposited by the City until the Bonds have been delivered,
and shall be deducted from the purchase price paid at settlement.
1.04. Savings. It is hereby determined that:
(a) by the issuance of the Bonds the City will realize a substantial interest rate
reduction, a gross savings of approximately $________ and a present value savings
(using the yield on the Bonds, computed in accordance with Section 148 of the Internal
75
Revenue Code of 1986, as amended (the “Code”), as the discount factor) of
approximately $________; and
(b) as of the Redemption Date, the sum of (i) the present value of the debt service on
the Bonds, computed to their stated maturity dates, after deducting any premium, using the yield
of the Bonds as the discount rate, plus (ii) any expenses of the refunding payable from a source
other than the proceeds of the Bonds or investment earnings thereon, is lower by _____% (not
less than 3%) than the present value of the debt service on the Refunded Bonds, computed to
their stated maturity dates, using the yield of the Bonds as the discount rate.
SECTION 2. BOND TERMS; REGISTRATION; EXECUTION AND DELIVERY.
2.01. Issuance of Bonds. All acts, conditions and things which are required by the
Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be
performed precedent to and in the valid issuance of the Bonds having been done, now existing,
having happened and having been performed, it is now necessary for the City Council to
establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds
forthwith.
2.02. Maturities; Interest Rates; Denominations and Payment. The Bonds shall be
originally dated as of December 29, 2015, shall be in the denomination of $5,000 each, or any
integral multiple thereof, of single maturities, shall mature on February 1 and August 1 in the
years and amounts stated below, and shall bear interest from date of issue until paid at the annual
rates set forth opposite such years and amounts, as follows:
Date Amount Rate Date Amount Rate
February 1, 2016 $ % February 1, 2024 $ %
August 1, 2016 August 1, 2024
February 1, 2017 February 1, 2025
August 1, 2017 August 1, 2025
February 1, 2018 February 1, 2026
August 1, 2018 August 1, 2026
February 1, 2019 February 1, 2027
August 1, 2019 August 1, 2027
February 1, 2020 February 1, 2028
August 1, 2020 August 1, 2028
February 1, 2021 February 1, 2029
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August 1, 2021 August 1, 2029
February 1, 2022 February 1, 2030
August 1, 2022 August 1, 2030
February 1, 2023 February 1, 2031
August 1, 2023
[REVISE MATURITY SCHEDULE FOR ANY TERM BONDS]
The Bonds shall be issuable only in fully registered form. Interest shall be computed on the basis
of a 360-day year composed of twelve 30-day months. The interest on and, upon surrender of
each Bond, the principal amount thereof, shall be payable by check or draft issued by the
Registrar described herein; provided that, so long as the Bonds are registered in the name of a
securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and
interest shall be payable in accordance with the operational arrangements of the securities
depository.
2.03. Dates and Interest Payment Dates. Upon initial delivery of the Bonds pursuant to
Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of
authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on
the Bonds shall be payable on February 1 and August 1 in each year, commencing
February 1, 2016, each such date being referred to herein as an Interest Payment Date, to the
persons in whose names the Bonds are registered on the Bond Register, as hereinafter defined, at
the Registrar's close of business on the fifteenth day of the calendar month next preceding such
Interest Payment Date, whether or not such day is a business day.
2.04. Redemption. Bonds maturing on February 1, 2025 and later shall be subject to
redemption and prepayment at the option of the City, in whole or in part, in such order of
maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar
(or, if applicable, by the securities depository in accordance with its customary procedures) in
multiples of $5,000, on February 1, 2024, and on any date thereafter, at a price equal to the
principal amount thereof and accrued interest to the date of redemption. The City shall cause
notice of the call for redemption thereof to be published as required by law, and at least 30 days
and not more than 60 days prior to the designated redemption date, shall cause notice of call for
redemption to be mailed, by first class mail, to the registered holders of any Bonds to be
redeemed at their addresses as they appear on the bond register described in Section 2.06 hereof.
No defect in or failure to give such mailed notice of redemption shall affect the validity of
proceedings for the redemption of any Bond not affected by such defect or failure. Official
notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be
redeemed shall, on the redemption date, become due and payable at the redemption price therein
specified and from and after such date (unless the City shall default in the payment of the
redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial
redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge,
representing the remaining principal amount outstanding.
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[COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS-
ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS]
[Bonds maturing on ________ 1, 20____ and 20____ (the “Term Bonds”) shall be
subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of
this Section 2.04 at a redemption price equal to the stated principal amount thereof plus interest
accrued thereon to the redemption date, without premium. The Registrar shall select for
redemption, by lot or other manner deemed fair, on ________ 1 in each of the following years
the following stated principal amounts of such Bonds:
Term Bonds Maturing ________ 1, 20__
Year Principal Amount
The remaining $_______________ stated principal amount of such Bonds shall be paid at
maturity on ________ 1, 20____.
Term Bonds Maturing ________ 1, 20__
Year Principal Amount
The remaining $_______________ stated principal amount of such Bonds shall be paid at
maturity on ________ 1, 20____.
Notice of redemption shall be given in accordance with the preceding paragraph.]
2.05. Appointment of Initial Registrar. The City hereby appoints Bond Trust Services
Corporation, Roseville, Minnesota, as the initial bond registrar, transfer agent and paying agent
(the Registrar). The Mayor and the City Manager are authorized to execute and deliver, on
behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar
with another corporation, if the resulting corporation is a bank or trust company organized under
the laws of the United States or one of the states of the United States and authorized by law to
conduct such business, such corporation shall be authorized to act as successor Registrar. The
City agrees to pay the reasonable and customary charges of the Registrar for the services
performed. The City reserves the right to remove the Registrar, effective upon not less than
thirty (30) days’ written notice and upon the appointment and acceptance of a successor
Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its
possession to the successor Registrar and shall deliver the Bond Register to the successor
Registrar.
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2.06. Registration. The effect of registration and the rights and duties of the City and the
Registrar with respect thereto shall be as follows:
(a) Register. The Registrar shall keep at its principal office a register (the Bond
Register) in which the Registrar shall provide for the registration of ownership of Bonds
and the registration of transfers and exchanges of Bonds entitled to be registered,
transferred or exchanged. The term Holder or Bondholder as used herein shall mean the
person (whether a natural person, corporation, association, partnership, trust,
governmental unit, or other legal entity) in whose name a Bond is registered in the Bond
Register.
(b) Transfer of Bonds. Upon surrender to the Registrar for transfer of any Bond
duly endorsed by the registered owner thereof or accompanied by a written instrument of
transfer, in form satisfactory to the Registrar, duly executed by the registered owner
thereof or by an attorney duly authorized by the registered owner in writing, the Registrar
shall authenticate and deliver, in the name of the designated transferee or transferees, one
or more new Bonds of a like aggregate principal amount and maturity, as requested by
the transferor. The Registrar may, however, close the books for registration of any
transfer after the fifteenth day of the month preceding each interest payment date and
until such interest payment date.
(c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered
owner for exchange the Registrar shall authenticate and deliver one or more new Bonds
of a like aggregate principal amount, interest rate and maturity, as requested by the
registered owner or the owner's attorney duly authorized in writing.
(d) Cancellation. All Bonds surrendered for payment, transfer or exchange shall
be promptly cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When any Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that
the endorsement on such Bond or separate instrument of transfer is valid and genuine and
that the requested transfer is legally authorized. The Registrar shall incur no liability for
the refusal, in good faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name any Bond is at any time registered in the bond register as the absolute owner
of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving
payment of or on account of, the principal of and interest on the Bond and for all other
purposes; and all payments made to any registered owner or upon the owner's order shall
be valid and effectual to satisfy and discharge the liability upon such Bond to the extent
of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (expect
for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge
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upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other
governmental charge required to be paid with respect to such transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become
mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like
amount, number, maturity date and tenor in exchange and substitution for and upon
cancellation of any such mutilated Bond or in lieu of and in substitution for any Bond
destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the
Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost,
upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed,
stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an
appropriate bond or indemnity in form, substance and amount satisfactory to it, in which
both the City and the Registrar shall be named as obligees. All Bonds so surrendered to
the Registrar shall be canceled by it and evidence of such cancellation shall be given to
the City. If the mutilated, destroyed, stolen or lost Bond has already matured, or been
called for redemption in accordance with its terms, it shall not be necessary to issue a
new Bond prior to payment.
(i) Authenticating Agent. The Registrar is hereby designated authenticating
agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55,
Subdivision 1, as amended.
(j) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds
shall be the valid obligations of the City, evidencing the same debt, and entitled to the
same benefits under this resolution as the Bonds surrendered upon such transfer or
exchange.
2.07. Execution, Authentication and Delivery. The Bonds shall be prepared under the
direction of the City Manager and shall be executed on behalf of the City by the signatures of the
Mayor and the City Manager, provided that the signatures may be printed, engraved or
lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of
whose signature shall appear on the Bonds shall cease to be such officer before the delivery of
any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes,
the same as if he had remained in office until delivery. Notwithstanding such execution, no
Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this
resolution unless and until a certificate of authentication on the Bond has been duly executed by
the manual signature of an authorized representative of the Registrar. Certificates of
authentication on different Bonds need not be signed by the same representative. The executed
certificate of authentication on each Bond shall be conclusive evidence that it has been
authenticated and delivered under this resolution. When the Bonds have been prepared, executed
and authenticated, the City Manager shall deliver them to the Purchaser upon payment of the
purchase price in accordance with the contract of sale heretofore executed, and the Purchaser
shall not be obligated to see to the application of the purchase price.
2.08. Securities Depository. (a) For purposes of this section the following terms shall
have the following meanings:
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“Beneficial Owner” shall mean, whenever used with respect to a Bond, the person in
whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the
records of such Participant, or such person's subrogee.
“Cede & Co.” shall mean Cede & Co., the nominee of DTC, and any successor nominee
of DTC with respect to the Bonds.
“DTC” shall mean The Depository Trust Company of New York, New York.
“Participant” shall mean any broker-dealer, bank or other financial institution for which
DTC holds Bonds as securities depository.
“Representation Letter” shall mean the Representation Letter pursuant to which the City
agrees to comply with DTC's Operational Arrangements.
(b) The Bonds shall be initially issued as separately authenticated fully registered bonds,
and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon
initial issuance, the ownership of such Bonds shall be registered in the bond register in the name
of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee)
as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment
of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be
redeemed, if any, giving any notice permitted or required to be given to registered owners of
Bonds under this resolution, registering the transfer of Bonds, and for all other purposes
whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary.
Neither the Registrar nor the City shall have any responsibility or obligation to any Participant,
any person claiming a beneficial ownership interest in the Bonds under or through DTC or any
Participant, or any other person which is not shown on the bond register as being a registered
owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any
Participant, with respect to the payment by DTC or any Participant of any amount with respect to
the principal of or interest on the Bonds, with respect to any notice which is permitted or
required to be given to owners of Bonds under this resolution, or with respect to any consent
given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is
registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of
and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede &
Co. in accordance with DTC's Operational Arrangements, and all such payments shall be valid
and effective to fully satisfy and discharge the City's obligations with respect to the principal of
and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC
shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of
the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of
written notice to the effect that DTC has determined to substitute a new nominee in place of
Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph
(e) hereof.
(c) In the event the City determines that it is in the best interest of the Beneficial Owners
that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and
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the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of
Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance
with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect
to the Bonds at any time by giving notice to the City and the Registrar and discharging its
responsibilities with respect thereto under applicable law. In such event the Bonds will be
transferable in accordance with paragraph (e) hereof.
(d) The execution and delivery of the Representation Letter to DTC by the Mayor or City
Manager is hereby authorized and directed.
(e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b)
or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of
the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted
transferee in accordance with the provisions of this resolution. In the event Bonds in the form of
certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as
owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions
of this resolution shall also apply to all matters relating thereto, including, without limitation, the
printing of such Bonds in the form of bond certificates and the method of payment of principal of
and interest on such Bonds in the form of bond certificates.
2.09. Form of Bonds. The Bonds shall be prepared in substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF HENNEPIN AND RAMSEY
CITY OF ST. ANTHONY
GENERAL OBLIGATION TAX INCREMENT REVENUE REFUNDING BOND,
SERIES 2015B
Interest Rate Maturity Date Date of Original Issue CUSIP No.
% ________ 1, 20__ December 29, 2015
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: THOUSAND DOLLARS
THE CITY OF ST. ANTHONY, STATE OF MINNESOTA (the City), acknowledges
itself to be indebted and hereby promises to pay to the registered owner named above, or
registered assigns, the principal amount specified above on the maturity date specified above,
with interest thereon from the date hereof at the annual rate specified above, payable on
February 1 and August 1 in each year, commencing February 1, 2016, to the person in whose
name this Bond is registered at the close of business on the fifteenth day (whether or not a
business day) of the immediately preceding month. The interest so payable on any Interest
Payment Date shall be paid to the person in whose name this Bond is registered at the close of
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business on the fifteenth day (whether or not a business day) of the calendar month immediately
preceding the Interest Payment Date, all subject to the provisions referred to herein with respect
to the redemption of the principal of this Bond before maturity. Interest hereon shall be
computed on the basis of a 360-day year composed of twelve 30-day months. The interest
hereon and, upon presentation and surrender hereof at the principal office of the Registrar
described below, the principal hereof are payable in lawful money of the United States of
America by check or draft drawn on the Bond Trust Services Corporation, Roseville, Minnesota,
as bond registrar, transfer agent and paying agent, or its successor designated under the
Resolution described herein (the Registrar), or its designated successor under the Resolution
described herein. For the prompt and full payment of such principal and interest as the same
respectively become due, the full faith and credit and taxing powers of the City have been and
are hereby irrevocably pledged.
This Bond is one of an issue (the Bonds) in the aggregate principal amount of
$_____________, issued pursuant to a resolution adopted by the City Council on December 8,
2015 (the Resolution) to effect an advance refunding of certain outstanding tax increment
revenue bonds issued by the Housing and Redevelopment Authority of the City to finance the
construction of various public improvements within Tax Increment District No. 3-5 of the City
(the District), and is issued pursuant to and in full conformity with the Constitution and laws of
the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 469 and 475.
The Bonds are payable primarily from ad valorem tax increments to be received by the City from
the District, which have been pledged to the payment of the Bonds. In addition, for the full and
prompt payment of the principal and interest on the Bonds as the same become due, the full faith,
credit and taxing power of the City have been and are hereby irrevocably pledged. The Bonds
are issuable only in fully registered form, in denominations of $5,000 or any integral multiple
thereof, of single maturities.
Bonds maturing on February 1, 2025 and later shall be subject to redemption and
prepayment at the option of the City, in whole or in part, in such order of maturity dates as the
City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by
the securities depository in accordance with its customary procedures) in multiples of $5,000, on
February 1, 2024, and on any date thereafter, at a price equal to the principal amount thereof and
accrued interest to the date of redemption. The City Manager shall cause notice of the call for
redemption thereof to be published as required by law, and at least 30 days and not more than 60
days prior to the designated redemption date, shall cause notice of call for redemption to be
mailed, by first class mail, to the registered holders of any Bonds to be redeemed at their
addresses as they appear on the bond register. No defect in or failure to give such mailed notice
of redemption shall affect the validity of proceedings for the redemption of any Bond not
affected by such defect or failure. Official notice of redemption having been given as aforesaid,
the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and
payable at the redemption price therein specified and from and after such date (unless the City
shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease
to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to
the owner without charge, representing the remaining principal amount outstanding.
[COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS-
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ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS]
[Bonds maturing on ________ 1, 20____ and 20____ (the “Term Bonds”) shall be
subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of
this paragraph at a redemption price equal to the stated principal amount thereof plus interest
accrued thereon to the redemption date, without premium. The Registrar shall select for
redemption, by lot or other manner deemed fair, on ________ 1 in each of the following years
the following stated principal amounts of such Bonds:
Term Bonds Maturing ________ 1, 20__
Year Principal Amount
The remaining $_______________ stated principal amount of such Bonds shall be paid at
maturity on ________ 1, 20____.
Term Bonds Maturing ________ 1, 20__
Year Principal Amount
The remaining $_______________ stated principal amount of such Bonds shall be paid at
maturity on ________ 1, 20____.
Notice of redemption shall be given in accordance with the preceding paragraph.]
As provided in the Resolution and subject to certain limitations set forth therein, this
Bond is transferable upon the books of the City at the principal office of the Registrar, by the
registered owner hereof in person or by the owner's attorney duly authorized in writing upon
surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly
executed by the registered owner or the owner's attorney, and may also be surrendered in
exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City
will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of
the same aggregate principal amount, bearing interest at the same rate and maturing on the same
date, subject to reimbursement for any tax, fee or governmental charge required to be paid with
respect to such transfer or exchange.
The Bonds have been designated by the City as “qualified tax-exempt obligations”
pursuant to Section 265(b) of the Internal Revenue Code of 1986.
The City and the Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of
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receiving payment and for all other purposes, and neither the City nor the Registrar shall be
affected by any notice to the contrary.
Notwithstanding any other provisions of this Bond, so long as this Bond is registered in
the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any
other nominee of The Depository Trust Company or other securities depository, the Registrar
shall pay all principal of and interest on this Bond, and shall give all notices with respect to this
Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of
The Depository Trust Company or other securities depository as agreed to by the City.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and laws of the State of Minnesota to be done,
to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order
to make it a valid and binding general obligation of the City in accordance with its terms, have
been done, do exist, have happened and have been performed as so required; that the City has
established its General Obligation Tax Increment Revenue Refunding Bonds, Series 2015B Bond
Fund and has appropriated thereto ad valorem tax increments to be derived from the District,
which tax increments are estimated to be receivable in years and in amounts sufficient to produce
sums not less than five percent in excess of the principal of and interest on the Bonds when due,
and has appropriated tax increments to its Bond Fund for the payment of such principal and
interest; that if necessary for the payment of such principal and interest when due, ad valorem
taxes are required to be levied upon all taxable property in the City, without limitation as to rate
or amount; and that the issuance of this Bond does not cause the indebtedness of the City to
exceed any constitutional or statutory limitation of indebtedness.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Resolution until the Certificate of Authentication hereon shall have
been executed by the Registrar by manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of St. Anthony, State of Minnesota, by its City
Council, has caused this Bond to be executed on its behalf by the facsimile signatures of the
Mayor and City Manager.
CITY OF ST. ANTHONTY, MINNESOTA
(facsimile signature – City Manager) (facsimile signature - Mayor)
_________________________
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CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
Date of Authentication: ___________
BOND TRUST SERVICES CORPORATION,
Roseville, Minnesota, as Bond Registrar
By _______________________________
Authorized Representative
_________________________
The following abbreviations, when used in the inscription on the face of this Bond, shall be
construed as though they were written out in full according to the applicable laws or regulations:
TEN COM - as tenants in common UTMA ................... as Custodian for .................
(Cust) (Minor)
TEN ENT - as tenants by the entireties under Uniform Transfers to Minors Act ....…………..
(State)
JT TEN -- as joint tenants with right of survivorship and not as tenants in common
Additional abbreviations may also be used.
_____________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto _________________
the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint
_________________ attorney to transfer the said Bond on the books kept for registration of the
within Bond, with full power of substitution in the premises.
Dated: __________________ ________________________________________________
NOTICE: The assignor's signature to this assignment must
correspond with the name as it appears upon the face of the
within Bond in every particular, without alteration or
enlargement or any change whatsoever.
Signature Guaranteed: ___________________________________
Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements
of the Registrar, which requirements include membership or participation in STAMP or such
other "signature guaranty program" as may be determined by the Registrar in addition to or in
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substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended.
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE: ____________________
[end of bond form]
SECTION 3. USE OF PROCEEDS. Upon payment for the Bonds by the Purchaser, Bond
proceeds shall be used as follows: (a) $____________ shall be deposited in the Escrow Account
established with U.S. Bank National Association (the “Escrow Agent”) under an Escrow
Agreement described hereunder, (b) $__________ shall be applied to pay costs of issuance and
(c) $__________ shall be deposited in the Bond Fund created pursuant to Section 4 hereof.
The Mayor and City Manager are hereby authorized to enter into an Escrow Agreement
with the Escrow Agent establishing the terms and conditions for the escrow account in
accordance with Minnesota Statutes, Section 475.67. Funds deposited with the Escrow Agent
(other than an initial cash balance in the escrow account) are to be invested in securities
authorized for such purpose by Minnesota Statutes, Section 475.67, subdivision 8, maturing on
such dates and bearing interest at such rates as are required to provide funds sufficient, with cash
retained in the escrow account, to pay and redeem the outstanding principal and accrued interest
on the Refunded Bonds to and including the Redemption Date (and the amounts in such account
are irrevocably appropriated to such purposes).
SECTION 4. GENERAL OBLIGATION TAX INCREMENT REVENUE REFUNDING
BONDS, SERIES 2015B BOND FUND. The Bonds shall be payable from a separate and
special General Obligation Tax Increment Revenue Refunding Bonds, Series 2015B Bond Fund
(the Bond Fund) of the City, which the City agrees to maintain until the Bonds have been paid in
full. If the money in the Bond Fund should at any time be insufficient to pay principal and
interest due on the Bonds, such amounts shall be paid from other moneys on hand in other funds
of the City, which other funds shall be reimbursed therefor when sufficient money becomes
available in the Bond Fund. The moneys on hand in the Bond Fund from time to time shall be
used only to pay the principal of and interest on the Bonds. Into the Bond Fund shall be paid: (a)
the amounts specified in Section 3; (b) all excess amounts on deposit in the debt service funds
maintained for the payment of the Refunded Bonds upon the retirement of the Refunded Bonds
on the Redemption Date; (c) ad valorem tax increments derived from the District to the extent
determined by the Council to be necessary, in addition to other funds appropriated to the Bond
Fund, to pay principal and interest on the Bonds when due; (d) ad valorem taxes collected in
accordance with the provisions of Section 5 hereof; and (e) any other funds appropriated by the
Council for the payment of the Bonds.
SECTION 5. PLEDGE OF TAXING POWERS. For the prompt and full payment of the
principal of and interest on the Bonds as such payments respectively become due, the full faith,
credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. It is
hereby estimated that the tax increments and other funds appropriated to the Bond Fund as set
forth in Section 4 hereof will produce amounts not less than five percent in excess of the
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amounts needed to meet when due the principal and interest payments on the Bonds, and
therefore no ad valorem taxes are required to be levied at this time. Nevertheless, if the balance
in the Bond Fund is at any time insufficient to pay all interest and principal then due on all
Bonds payable therefrom, the payment shall be made from any fund of the City which is
available for that purpose, subject to reimbursement from the Bond Fund when the balance
therein is sufficient, and the City Council covenants and agrees that it will each year levy a
sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency,
which levy is not subject to any constitutional of statutory limitation.
SECTION 6. DEBT SERVICE FUND BALANCE RESTRICTION. In order to ensure
compliance with the Code, and applicable Treasury Regulations (the Regulations), upon
allocation of any funds to the Bond Fund, the balance then on hand in the Fund shall be
ascertained. If it exceeds the amount of principal and interest on the Bonds to become due and
payable through February 1 next following, plus a reasonable carryover equal to 1/12th of the
debt service due in the following bond year, the excess shall (unless an opinion is otherwise
received from bond counsel) be used to prepay or purchase Bonds, or invested at a yield which
does not exceed the yield on the Bonds calculated in accordance with Section 148 of the Code.
SECTION 7. DEFEASANCE. When all of the Bonds have been discharged as provided in this
section, all pledges, covenants and other rights granted by this resolution to the registered owners
of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds
which are due on any date by depositing with the Registrar on or before that date a sum sufficient
for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless
be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full
with interest accrued from the due date to the date of such deposit. The City may also discharge
its obligations with respect to any prepayable Bonds called for redemption on any date when
they are prepayable according to their terms, by depositing with the Registrar on or before that
date an amount equal to the principal, interest and redemption premium, if any, which are then
due, provided that notice of such redemption has been duly given as provided herein. The City
may also at any time discharge its obligations with respect to any Bonds, subject to the
provisions of law now or hereafter authorizing and regulating such action, by depositing
irrevocably in escrow, with a bank or trust company qualified by law as an escrow agent for this
purpose, cash or securities which are authorized by law to be so deposited, bearing interest
payable at such time and at such rates and maturing or callable at the holder's option on such
dates as shall be required to pay all principal and interest to become due thereon to maturity or
earlier designated redemption date.
SECTION 8. CERTIFICATION OF PROCEEDINGS.
8.01. Registration of Bonds. The City Manager is hereby authorized and directed to file
a certified copy of this resolution with the County Auditors of Hennepin County and Ramsey
County and obtain certificates that the Bonds have been duly entered upon the Auditors’ bond
registers.
8.02. Authentication of Transcript. The officers of the City and the County Auditors are
hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney
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LLP, Bond Counsel, certified copies of all proceedings and records relating to the Bonds and
such other affidavits, certificates and information as may be required to show the facts relating to
the legality and marketability of the Bonds, as the same appear from the books and records in
their custody and control or as otherwise known to them, and all such certified copies, affidavits
and certificates, including any heretofore furnished, shall be deemed representations of the City
as to the correctness of all statements contained therein.
8.03. Official Statement. The Preliminary Official Statement relating to the Bonds,
dated November 24, 2015, relating to the Bonds prepared and distributed by Ehlers &
Associates, Inc., the financial advisor for the City, is hereby approved. Ehlers & Associates,
Inc., is hereby authorized on behalf of the City to prepare and distribute to the Purchaser within
seven business days from the date hereof, a supplement to the Official Statement listing the
offering price, the interest rates, selling compensation, delivery date, the underwriters and such
other information relating to the Bonds required to be included in the Official Statement by Rule
l5c2-12 adopted by the Securities and Exchange Commission (the “SEC”) under the Securities
Exchange Act of 1934. The officers of the City are hereby authorized and directed to execute
such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of
the Official Statement.
8.04. Authorization of Payment of Certain Costs of Issuance of the Bonds. The City
authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of
issuance expenses to Klein Bank, on the closing date for further distribution as directed by the
City’s financial advisor, Ehlers & Associates, Inc.
SECTION 9. TAX COVENANTS; ARBITRAGE MATTERS; REIMBURSEMENT
AND CONTINUING DISCLOSURE.
9.01. General Tax Covenant. The City covenants and agrees with the registered owners
of the Bonds that it will not take, or permit to be taken by any of its officers, employees or
agents, any actions that would cause interest on the Bonds to become includable in gross income
of the recipient under the Internal Revenue Code of 1986, as amended (the Code) and applicable
Treasury Regulations (the Regulations), and covenants to take any and all actions within its
powers to ensure that the interest on the Bonds will not become includable in gross income of the
recipient under the Code and the Regulations. The City covenants and agrees that, so long as the
Bonds are outstanding, the City shall not enter into any lease, management agreement, use
agreement or other contract with any nongovernmental entity relating to the improvements so
refinanced which would cause the Bonds to be considered “private activity bonds” or “private
loan bonds” pursuant to Section 141 of the Code.
9.02. Arbitrage Certification. The Mayor and City Manager being the officers of the
City charged with the responsibility for issuing the Bonds pursuant to this resolution, are
authorized and directed to execute and deliver to the Purchaser a certificate in accordance with
Section 148 of the Code, and applicable Regulations, stating the facts, estimates and
circumstances in existence on the date of issue and delivery of the Bonds which make it
reasonable to expect that the proceeds of the Bonds will not be used in a manner that would
cause the Bonds to be “arbitrage bonds” within the meaning of the Code and Regulations.
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9.03. Arbitrage Rebate. The City acknowledges that the Bonds are subject to the rebate
requirements of Section 148(f) of the Code. The City covenants and agrees to retain such
records, make such determinations, file such reports and documents and pay such amounts at
such times as are required under said Section 148(f) and applicable Regulations, unless the
Bonds qualify for an exception from the rebate requirement pursuant to one of the spending
exceptions set forth in Section 1.148-7 of the Regulations and no “gross proceeds” of the Bonds
(other than amounts constituting a “bona fide debt service fund”) arise during or after the
expenditure of the original proceeds thereof.
9.04. Qualified Tax-Exempt Obligations. The City hereby designates the Bonds as
“qualified tax–exempt obligations” for purpose of Section 265(b) of the Code relating to the
disallowance of interest expenses for financial institutions. The City represents that in calendar
year 2015 it does not reasonably expect to issue tax–exempt obligations which are not private
activity bonds (not treating qualified 501(c)(3) bonds under Section 145 of the Code as private
activity bonds for purposes of this representation) in an amount in excess of $10,000,000.
9.05. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public
availability of certain information relating to the Bonds and the security therefor and to permit
the Purchaser and other participating underwriters in the primary offering of the Bonds to
comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities
Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect
and interpreted from time to time, the Rule), which will enhance the marketability of the Bonds,
the City hereby makes the following covenants and agreements for the benefit of the Owners (as
hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated
person in respect of the Bonds within the meaning of the Rule for purposes of identifying the
entities in respect of which continuing disclosure must be made. If the City fails to comply with
any provisions of this section, any person aggrieved thereby, including the Owners of any
Outstanding Bonds, may take whatever action at law or in equity may appear necessary or
appropriate to enforce performance and observance of any agreement or covenant contained in
this section, including an action for a writ of mandamus or specific performance. Direct,
indirect, consequential and punitive damages shall not be recoverable for any default hereunder
to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no
event shall a default under this section constitute a default under the Bonds or under any other
provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a
Bond, the registered owner or owners thereof appearing in the bond register maintained by the
Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner
provides to the Registrar evidence of such beneficial ownership in form and substance
reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of a
Bond, any person or entity which (i) has the power, directly or indirectly, to vote or consent with
respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds
through nominees, depositories or other intermediaries), or (ii) is treated as the owner of the
Bond for federal income tax purposes.
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(b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection
(c) hereof, either directly or indirectly through an agent designated by the City, the following
information at the following times:
(1) on or before twelve (12) months after the end of each fiscal year of the City,
commencing with the fiscal year ending December 31, 2015, the following financial
information and operating data in respect of the City (the Disclosure Information):
(A) the audited financial statements of the City for such fiscal year, in accordance
with the governmental accounting standards promulgated by the Governmental
Accounting Standards Board or as otherwise provided under Minnesota law, as
in effect from time to time, or, if and to the extent such financial statements
have not been prepared in accordance with such generally accepted accounting
principles for reasons beyond the reasonable control of the City, noting the
discrepancies therefrom and the effect thereof, and certified as to accuracy and
completeness in all material respects by the fiscal officer of the City; and
(B) to the extent not included in the financial statements referred to in paragraph (A)
hereof, the information for such fiscal year or for the period most recently
available of the type contained in the Official Statement under the headings:
Current Property Valuations; Direct Debt; Tax Levies and Collections;
Population Trend and Employment/Unemployment Data, which information
may be unaudited.
Notwithstanding the foregoing paragraph, if the audited financial statements are not available by
the date specified, the City shall provide on or before such date unaudited financial statements in
the format required for the audited financial statements as part of the Disclosure Information and,
within 10 days after the receipt thereof, the City shall provide the audited financial statements.
Any or all of the Disclosure Information may be incorporated by reference, if it is updated as
required hereby, from other documents, including official statements, which have been submitted
to the Municipal Securities Rulemaking Board (“MSRB”) through its Electronic Municipal
Market Access System (“EMMA”) or to the SEC. The City shall clearly identify in the
Disclosure Information each document so incorporated by reference. If any part of the
Disclosure Information can no longer be generated because the operations of the City have
materially changed or been discontinued, such Disclosure Information need no longer be
provided if the City includes in the Disclosure Information a statement to such effect, provided,
however, if such operations have been replaced by other City operations in respect of which data
is not included in the Disclosure Information and the City determines that certain specified data
regarding such replacement operations would be a Material Fact (as defined in paragraph (2)
hereof), then, from and after such determination, the Disclosure Information shall include such
additional specified data regarding the replacement operations. If the Disclosure Information is
changed or this section is amended as permitted by this paragraph (b)(1) or subsection (d), then
the City shall include in the next Disclosure Information to be delivered hereunder, to the extent
necessary, an explanation of the reasons for the amendment and the effect of any change in the
type of financial information or operating data provided.
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(2) In a timely manner not in excess of ten business days after the occurrence of the
event, notice of the occurrence of any of the following events (each a “Material
Fact”):
(A) Principal and interest payment delinquencies;
(B) Non-payment related defaults, if material;
(C) Unscheduled draws on debt service reserves reflecting financial difficulties;
(D) Unscheduled draws on credit enhancements reflecting financial difficulties;
(E) Substitution of credit or liquidity providers, or their failure to perform;
(F) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form
5701-TEB) or other material notices or determinations with respect to the tax
status of the security, or other material events affecting the tax status of the
security;
(G) Modifications to rights of security holders, if material;
(H) Bond calls, if material, and tender offers;
(I) Defeasances;
(J) Release, substitution, or sale of property securing repayment of the securities, if
material;
(K) Rating changes;
(L) Bankruptcy, insolvency, receivership or similar event of the obligated person;
(M) The consummation of a merger, consolidation, or acquisition involving an
obligated person or the sale of all or substantially all of the assets of the
obligated person, other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of a
definitive agreement relating to any such actions, other than pursuant to its
terms, if material; and
(N) Appointment of a successor or additional trustee or the change of name of a
trustee, if material.
As used herein, for those events that must be reported if material, an event is “material” if it is an
event as to which a substantial likelihood exists that a reasonably prudent investor would attach
importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would
significantly alter the total information otherwise available to an investor from the Official
Statement, information disclosed hereunder or information generally available to the public.
Notwithstanding the foregoing sentence, an event is also “material” if it is an event that would be
deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of
applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the
event.
For the purposes of the event identified in (L) hereinabove, the event is considered to occur when
any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an
obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding
under state or federal law in which a court or governmental authority has assumed jurisdiction
over substantially all of the assets or business of the obligated person, or if such jurisdiction has
been assumed by leaving the existing governing body and officials or officers in possession but
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subject to the supervision and orders of a court or governmental authority, or the entry of an
order confirming a plan of reorganization, arrangement or liquidation by a court or governmental
authority having supervision or jurisdiction over substantially all of the assets or business of the
obligated person.
(3) In a timely manner, notice of the occurrence of any of the following events or
conditions:
(A) the failure of the City to provide the Disclosure Information required under
paragraph (b)(1) at the time specified thereunder;
(B) the amendment or supplementing of this section pursuant to subsection (d),
together with a copy of such amendment or supplement and any explanation
provided by the City under subsection (d)(2);
(C) the termination of the obligations of the City under this section pursuant to
subsection (d);
(D) any change in the accounting principles pursuant to which the financial
statements constituting a portion of the Disclosure Information are prepared;
and
(E) any change in the fiscal year of the City.
(c) Manner of Disclosure.
(1) The City agrees to make available to the MSRB through EMMA, in an electronic
format as prescribed by the MSRB, the information described in subsection (b).
(2) All documents provided to the MSRB pursuant to this subsection (c) shall be
accompanied by identifying information as prescribed by the MSRB from time to
time.
(d) Term; Amendments; Interpretation.
(1) The covenants of the City in this section shall remain in effect so long as any Bonds
are Outstanding. Notwithstanding the preceding sentence, however, the obligations
of the City under this section shall terminate and be without further effect as of any
date on which the City delivers to the Registrar an opinion of Bond Counsel to the
effect that, because of legislative action or final judicial or administrative actions or
proceedings, the failure of the City to comply with the requirements of this section
will not cause participating underwriters in the primary offering of the Bonds to be
in violation of the Rule or other applicable requirements of the Securities Exchange
Act of 1934, as amended, or any statutes or laws successory thereto or amendatory
thereof.
(2) This section (and the form and requirements of the Disclosure Information) may be
amended or supplemented by the City from time to time, without notice to (except as
provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a
resolution of this Council filed in the office of the recording officer of the City
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accompanied by an opinion of Bond Counsel, who may rely on certificates of the
City and others and the opinion may be subject to customary qualifications, to the
effect that: (i) such amendment or supplement (a) is made in connection with a
change in circumstances that arises from a change in law or regulation or a change in
the identity, nature or status of the City or the type of operations conducted by the
City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5)
of the Rule; (ii) this section as so amended or supplemented would have complied
with the requirements of paragraph (b)(5) of the Rule at the time of the primary
offering of the Bonds, giving effect to any change in circumstances applicable under
clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the
amendment or supplement was in effect at the time of the primary offering; and (iii)
such amendment or supplement does not materially impair the interests of the
Bondowners under the Rule.
If the Disclosure Information is so amended, the City agrees to provide,
contemporaneously with the effectiveness of such amendment, an explanation of the
reasons for the amendment and the effect, if any, of the change in the type of
financial information or operating data being provided hereunder.
(3) This section is entered into to comply with the continuing disclosure provisions of
the Rule and should be construed so as to satisfy the requirements of paragraph
(b)(5) of the Rule.
SECTION 10. REFUNDED BONDS CALL. The HRA has advised the City that it
intends to call the Refunded Bonds maturing after 2016 for redemption and prepayment on
August 1, 2016.
Adopted this 8th day of December, 2015.
______________________________
Jerome O. Faust, Mayor
ATTEST: ___________________________
City Clerk
Reviewed for administration: ______________________________
Mark Casey, City Manager
.
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COUNTY AUDITOR’S CERTIFICATE AS TO REGISTRATION
I, the undersigned, being the duly qualified and acting County Auditor of Hennepin
County, Minnesota, hereby certify that there has been filed in my office a certified copy of a
resolution duly adopted on December 8, 2015, by the City Council of the City of St. Anthony,
Minnesota, setting forth the form and details of an issue of $4,445,000 General Obligation Tax
Increment Revenue Refunding Bonds, Series 2015B, dated as of December 29, 2015.
I further certify that the issue has been entered on my bond register and filed as required
by Minnesota Statutes, Sections 475.61 to 475.63.
WITNESS my hand and official seal this ______ day of _____________, 2015.
___________________________________
Hennepin County Auditor
(SEAL)
95
COUNTY AUDITOR’S CERTIFICATE AS TO REGISTRATION
I, the undersigned, being the duly qualified and acting County Auditor of Ramsey
County, Minnesota, hereby certify that there has been filed in my office a certified copy of a
resolution duly adopted on December 8, 2015, by the City Council of the City of St. Anthony,
Minnesota, setting forth the form and details of an issue of $4,445,000 General Obligation Tax
Increment Revenue Refunding Bonds, Series 2015B, dated as of December 29, 2015.
I further certify that the issue has been entered on my bond register and filed as required
by Minnesota Statutes, Sections 475.61 to 475.63.
WITNESS my hand and official seal this ______ day of _____________, 2015.
___________________________________
Ramsey County Auditor
(SEAL)
96
Building a legacy – your legacy. 701 Xenia Avenue South
Suite 300
Minneapolis, MN 55416
Tel: 763‐541‐4800
Fax: 763‐541‐1700
Equal Opportunity Employer
wsbeng.com
K:\02170‐130\Admin\Resolutions\LTR‐hmcc‐120215.docx
December 2, 2015
The Honorable Mayor, City Council, and Staff
c/o Mark Casey
City of St. Anthony Village
3301 Silver Lake Road NE
Minneapolis, MN 55418‐1603
Re: Approve Plans and Specifications and Ordering Advertisement for Bids
2016 Street and Utility Improvement Project
St. Anthony Village, MN
WSB Project No. 2170‐13
Dear Honorable Mayor, City Council, and Staff:
Following this letter are two (2) resolutions for your consideration at the December 8, 2015 City Council
Meeting. This will be the fourth meeting in a series of seven public meetings related the 2016 Street &
Utility Improvement Project.
The first resolution for your consideration approves the plans and specifications and authorizes the
advertisement for bids for the 2016 Street and Utility Improvement Project. We anticipate opening bids
on or near January 27, 2016 and bringing the bid results to Council in February.
A second resolution for your consideration approves restricting parking along Stinson Boulevard
between 37th Avenue NE and Silver Lane NE to accommodate the proposed roadway width and allow for
the construction of the future sidewalk within the City right‐of‐way. Please note that prior to this
project parking has been prohibited on Stinson Boulevard, however to satisfy MnDOT State Aid
requirements a formal resolution prohibiting parking must be recorded.
I will be present at your December 8, 2015 Council Meeting to answer any questions you may have on
this issue, or please call me at 763‐287‐7182.
Sincerely,
WSB & Associates, Inc.
Todd E. Hubmer, PE
City Engineer
Attachments
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2016 Street and Utility
Improvement Project
September 8, 2015
Remaining Streets & Utility
Reconstruction Projects
Method for Selection
1.Flood Relief Effort
2.Existing Utility Deterioration
3.Pavement Condition
4.Adjacent Infrastructure
Replacement (Construction
Phasing)
99
Project Location
Stinson Boulevard NE
(from 37th Avenue NE
to Silver Lane NE)
Street Reconstruction
100
Sanitary Sewer Improvements
Water System Improvements
101
Drainage Improvements
Project Cost/Funding Breakdown
102
1.Special Assessments
2.Street & Utility Reconstruction Funds
3.Municipal State Aid Funds (MSAS)
Funding Sources
Assessed Parcels
103
Project Schedule
Council Orders Feasibility June 23, 2015
Council Accept Feasibility/Order Plans September 8, 2015
Council Approve Plans/Authorize Bid December 8, 2015
Receive Bids/Compute Assessments January 2016
2nd Public Info Meeting February 2016
Public Hearing/Award Contract March 2016
Begin Construction May 2016
Substantial Completion October 2016
Final Paving June 2017
Questions?
104
CITY OF ST. ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-076
A RESOLUTION ACCEPTING PLANS AND SPECIFICATIONS
AND ORDERING ADVERTISEMENT FOR BIDS FOR THE
2016 STREET AND UTILITY IMPROVEMENTS
WHEREAS, the engineering firm of WSB & Associates, Inc. has prepared plans and specifications for the
improvement of:
Street & Utility Reconstruction
Stinson Boulevard from 37th Avenue NE to Silver Lane NE
Trail and Sidewalk Improvements
8’ bituminous trail along west side of Stinson Boulevard between 37th Place N and 40th
Avenue NE (This is a Columbia Heights improvement)
Salo Park sidewalk replacement
Decorative Lighting
East side of Stinson Boulevard NE between 37th Avenue NE and Silver Lane NE.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of St. Anthony Village that:
1.) Such improvements are necessary, cost-effective, and feasible.
2.) Such plans and specifications are hereby approved.
3.) The consulting engineering firm shall prepare and cause to be inserted in the official paper and in the
Finance and Commerce, an advertisement for bids upon the making of such improvements under such
approved plans and specifications. The advertisement shall be published for two times, shall specify the
work to be done, shall state that bids will be opened on or about January 27, 2016, and bids will be
considered by the City Council. Any bidder whose responsibility is questioned during consideration of
the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be
considered unless sealed and filed with the Clerk and accompanied by a cash deposit, cashier’s check,
bid bond, or certified check payable to the City of St. Anthony Village for Five (5%) percent of the
amount of such bid.
Adopted this 8th day of December , 2015.
_____________________________
Jerome O. Faust, Mayor
ATTEST:____________________________
Nicole Miller, City Clerk
Reviewed for administration: ______________________________
Mark Casey, City Manager
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CITY OF ST. ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-077
A RESOLUTION RESTRICTING PARKING
ALONG THE EAST SIDE OF STINSON BOULEVARD FOR THE
2016 STREET AND UTILITY IMPROVEMENT PROJECT
WHEREAS, the City of St. Anthony Village has planned improvements to Stinson Boulevard NE,
State Aid Route No. 161-112-001, between 37th Avenue NE and Silver Lane NE; and
WHEREAS, the City of St. Anthony Village has ordered the project for the 2016 Street and
Utility Improvements; and
WHEREAS, the City of St. Anthony Village will be expending Municipal State Aid System funds
on improvements to Stinson Boulevard NE; and
WHEREAS, this improvement does not provide adequate width for parking on both sides of the
street; and approval of the proposed construction as a Municipal State Aid Street
project must therefore be conditioned upon certain parking restrictions.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of St. Anthony
Village that:
The City of St. Anthony Village shall prohibit the parking of motor vehicles on the east side of
Stinson Boulevard NE from 37th Avenue NE to Silver Lane NE.
Adopted this 8th day of December , 2015.
_____________________________
Jerome O. Faust, Mayor
ATTEST:____________________________
Nicole Miller, City Clerk
Reviewed for administration: ______________________________
Mark Casey, City Manager
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108
REQUEST FOR COUNCIL CONSIDERATION
Meeting Date: December 8, 2015
Resolution-Approval Combination Wine/Strong Beer License for Catrina’s II, LLC located at 2510
Kenzie Terrace.
OVERVIEW:
In front of you this evening is a resolution to approve a Wine/Strong Beer License for Catrina’s
located at 2510 Kenzie Terrace.
On November 23, 2015 the Planning Commission held a public hearing regarding an amendment to
an existing conditional use permit for 2510 Kenzie Terrace.
Earlier on the agenda this evening was a recommendation from the November 23, 2015 Planning
Commission meeting to approve an amendment to an existing conditional use permit for this
location. One of the changes to the existing conditional use permit is to allow the sale of alcoholic
beverages on the premises.
Staff has completed background checks on the business owners as well as the existing Catrina’s
located in Oakdale, MN. Staff is recommending approving the Wine/Strong Beer License.
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110
CITY OF ST. ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-078
A RESOLUTION APPROVING COMBINATION WINE/STRONG BEER LICENSE
FOR CATRINAS II, LLC. LOCATED AT 2510 KENZIE TERRACE.
WHEREAS, the applicant’s filed an application for a Wine/Strong Beer License for 2510
Kenzie Terrace on September 23, 2015; and
WHEREAS, the applicant’s filed a Land Use Application for a Conditional Use Permit
Amendment on September 21, 2015; and
WHEREAS, the Planning Commission held a Public Hearing on November 23, 2015; and
WHEREAS, On December 8, 2015 the Planning Commission made recommendations to
the City Council to approve the request for an amendment to the existing
Conditional Use Permit to allow for the sale of alcoholic beverages at 2510
Kenzie Terrace.
WHEREAS, Staff recommends approval of a Wine/Strong Beer License for Catrinas,
located at 2510 Kenzie Terrace.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Saint
Anthony Village hereby approves Combination Wine/Strong Beer License for Catrinas
located at 2510 Kenzie Terrace.
Adopted this 8th day December, 2015.
____________________________
Jerome O. Faust, Mayor
ATTEST:____________________________
Nicole Miller, City Clerk
Reviewed for administration: ____________________________
Mark Casey, City Manager
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112
REQUEST FOR COUNCIL CONSIDERATION
Meeting Date: December 8, 2015
Resolution-Approving the 2016 Fee Schedule
OVERVIEW:
In front of you this evening is a resolution to approve the proposed 2016 Fee Schedule. Staff has
reviewed the entire fee schedule and recommends the changes noted in the proposed schedule.
Changes include:
• Increase the per hour inspectors fee to be in line with our new joint building inspections
program with the City of New Brighton
• Estimated actual staff spend inspecting swimming pools, driveway/sidewalk, fences, gas
stations
• Increase fee and created an escrow for land use appeals
• Creation of fee for preparation of delinquent utility assessment notification
• Increase sewer and water connection charges
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City of St. Anthony Village
3301 Silver Lake Road
St. Anthony, Minnesota 55418
FEE SCHEDULE
2016
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Table of Contents
General Construction
Building ................................................................................................... 1
Electrical .................................................................................................. 2
Mechanical .............................................................................................. 3
Miscellaneous ......................................................................................... 3
Plumbing ................................................................................................ 3
Manufactured Home ............................................................................. 4
Land Use Applications ................................................................................... 4
Licenses ............................................................................................................. 5
Miscellaneous Fees.......................................................................................... 6
Park Contributions ................................................................................ 6
Right of Way ........................................................................................... 6
Utilities
Fire Control Devices .............................................................................. 7
Irrigation Rates ....................................................................................... 7
Sewer Rates ............................................................................................. 7
Storm water Facilities Rates ................................................................. 7
Water Meters .......................................................................................... 8
Water Rates ............................................................................................. 8
116
117
GENERAL CONSTRUCTION
BUILDING PERMITS FEES:
Total Valuation Amount
$1 to $500 $29.50
$501 to $2,000
$28 for the first $500 plus $3.70/additional $100 or fraction thereof, to
including $2,000
$2,001 to $25,000
$83.50 for the first $2,000 plus $16.55/additional $1,000 or fraction
thereof, to including $25,000
$25,001 to $50,000
$464.15 for the first $25,000 plus $12.00/additional $1,000 or fraction
thereof, to including $50,000
$50,001 to $100,000
$764.15 for the first $50,000 plus $8.45/additional $1,000 or fraction
thereof, to including $100,000
$100,001 to $500,000
$1,186.65 for the first $100,000 plus $6.75/additional $1,000 or fraction
thereof, to including $500,000
$500,001 to $1,000,000
$3,886.65 for the first $500,000 plus $5.50/additional $1,000 or fraction thereof, to
including $1,000,000
$1,000,001 and up
$6,636.65 for the first $1,000,000 plus $4.50/additional $1,000 or fraction thereof
Inspections outside of normal business hours
(minimum charge, 2 hours)
$63.25 $65.00per hour
(or the total hourly cost to the jurisdiction, which is the greatest.
This cost shall include supervision, overhead, equipment, hourly
wages, and fringe benefits of the employees involved.)
Re-inspection; fees assessed under provisions
of §32.08
$63.25 $65.00per hour
Inspections for which no fee is specifically
indicated (minimum charge, 1/2 hour)
$63.25 $65.00per hour
Additional plan review required by changes,
additions, or revisions to plans (minimum
charge, 1/2 hour)
$63.25 $65.00per hour
For use of outside consultants for plan
checking and inspections, or both
Actual costs
(including administrative and overhead costs)
Notes to Table:
A plan review fee of 65% of the permit fee will be charged for building permits which requires the submittal of
plans.
Fees for similar plans will be charged in accordance with provisions of MN Rules, Chapter 1300.0160, subd. 5.
118
ELECTRICAL PERMITS FEES:
Purpose of Fee: Description Amount
Residential or Commercial
Building or Garage
Electrical panel change out, repair or service
upgrade
Up to 300 amps $50.00
400 amps $58.00
For each additional 100 amps add $14.00
Reconnected circuits Charge for each $3.00
Residential or Commercial
Building or Garage
New circuits or reconnected circuits spliced
outside of electric panel are at full fee
Charge for each up to 30 amps $8.00
Charge for each up to 100 amps $10.00
For each additional 100 amps add $5.00
New Home
New Single Family Residence or Building Remodel
up to 200 amps and 30 circuits used or less -
includes a maximum of 3 inspection trips
(There is no maximum fee if the service is larger than 200
amps)
$150.00
All Remodel Projects
Single Family Residence or Building Remodel
Total costs equals required number of inspections trips multiplied by
$35 each or the total cost of the circuits being used whichever is greater,
but not both.
Multi-Family Dwelling with 3 or more Units
Each housing unit - up to 200 amps with a
meter bank application and 20 circuits or less.
$70.00
Additional inspection trip $35.00
House Wiring and service is separate. Above
fees apply.
Transformers
0 -10 kilovolt-amperes $10.00
11 - 76 kilovolt-amperes $40.00
over 76 kilovolt - amperes $80.00
Retro fit lighting
(ballast & lamps only; new fixture is per
circuit fee)
for the first 10 fixtures $10.00
each additional fixture $0.65
Sign Transformer $8.00
Swimming Pools per trip plus circuit fees $35.00 $50.00
Street Lights and lot lights per pole $4.00
Traffic Signals per standard $7.00
Remote Control, Signal,
fire alarm & energy management
for the first 10 devices $10.00
for each additional device $0.65
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MECHANICAL PERMIT:
Purpose of Fee Amount
Residential (R-1, R-1A, and R-2)
Each dwelling unit (new construction)
$150
Other (furnace, gas range, gas dryer, hot water heater, air
conditioner, gas piping, duct work, and the like)
$30
Commercial, light industrial, and multi-family (C, LI, R-3,and R-4)
All
3% of contract price
Add $20 administrative fee and $1.00 surcharge to all permits
NOTES TO TABLE:
The minimum permit fee for commercial, industrial, institutional, or business occupancies is $20 plus state
permit fee surcharge.
MISCELLANEOUS PERMIT:
Permit Amount
Antennas, disk antennas and towers Per Building Permit Fee Schedule
Demolition Permit $50 Residential
$75 Commercial
Driveway/Sidewalk $30 $75
Fence $30 $75
Public Safety $20
Solar $50 plus 1.25% of total valuation
Zoning Permit $30
PLUMBING PERMIT:
Residential (R-1, R-1A, and R-2)
First bath $100
Each additional bath $35
3/4 bath $35
1/2 bath $20
Laundry $20
Water softener $20
Other $30
Commercial, Light Industrial, and Multi-Family (C, LI, R-3, and R-4)
All 3% of contract price
Lawn sprinklers, residential $20
Lawn sprinklers, commercial $30
Add $20 administrative fee and $1.00 surcharge to all permits
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MANUFACTURED HOME/ACCESSORY INSTALLATION PERMIT:
Permit Amount
Single Wide $79
Double Wide $95
Each Additional 1’ Width $16
Add $20 administrative fee and $1.00 surcharge to all
permits
LAND USE APPLICATION:
Purpose of Fee (Code #) Amount
Appeal $100.00 $500.00 and an Escrow deposit of $500
Comprehensive Plan $750 and an Escrow deposit of $1,500 for Residential
and $3,500 for Commercial
Conditional Use Permit (§152.243) $200 and an Escrow deposit of $450 for Residential
and $850 for Commercial
Easement Vacation (§151.11) $200
Final Plat (§151.04) $500 with an Escrow deposit of $500
Garage Setback permit (§152.176) $60
Planned Unit Development (§152.176) $750 with a $2,500 Escrow deposit
Preliminary Plat (§151.03) $500 with a $500 Escrow deposit
Rezoning (§152.242) $500 with a $750 Escrow deposit
Sign Permit (§155) $75 for cost of $1 to $500, plus $5 each $100 over
$500
Sign Plan review (§155) $75
Site Plan (§152.241) $250 with an Escrow deposit of $450
Subdivision/Lot Split $250 with a $1,250 Escrow deposit
Variance (§152.245) $200 and an Escrow deposit of $450 for Residential
and $850 Commercial
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LICENSES:
License (Ord. #) Amount
Alarm Permits: (§111.152)
Commercial
$25
Residential
$10
Christmas Tree Lots:
Non-Profit
No fee
Other Applicants
$50
Contractors (§111.231)
$35 or $5 if licensed by state
Courtesy Ad Bench
$30 per bench New
$10 per bench renewal
Fireworks: (§111.371)
$100 Existing
$350 Stand Alone
Dog (§91.011)
Duplicate license or tag
$15 every two years unspayed or unneutered;
$12 every two years spayed or neutered
$1.50
Gasoline service stations
(stations with multiple products dispensed through 1 hose)
$30 $75 for station and 1 production line, plus
$8.50 $15 for each product line dispensed.
Haulers of Garbage or Recyclables (§111.216) $150
Kennel (§91.20) $50
Laundromats (coin-operated not in multiple family building)
$10 per machine, up to a maximum of $190 per
location
Liquor: (March 15th renewal date; annually) (§112.03)
Beer: off-sale; 3.2% malt liquor license $100
Beer: on-sale; 3.2% malt liquor license $350
Beer: Temporary on-sale 3.2% malt liquor license
None
Liquor: on-sale intoxicating liquor $8,000
Liquor: Sunday on-sale
Wine: only
Wine: with strong beer endorsement
Wine: temporary
$200
$400 license fee & $100 processing fee
$1,500 license fee & a 100 processing fee
None
Multiple Dwellings (§111.188)
$150 base fee plus $10 per unit for 3 or more
(penalty after July 1st base fee increases to $250)
Pawnbroker (§111.287) $8,000 license fee; $750 investigation fee
Peddler (§113.01) $50
Physical culture and health service or club, reducing
club or salon, sauna parlor, therapeutic massage
studio (§111.341)
$500 investigation
$250 Therapist
Secondhand good dealer (§111.252) $5,000 license fee; $750 investigation fee
Tobacco or tobacco related products (§111.047) $300
Towing/Motor Vehicle Starting (§111.111) $30 for first vehicle and $20 for each additional
vehicle
Transient Merchant (§113.01) $50
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MISCELLANEOUS FEES:
Type Amount
Security False Alarm (§111.155 D) First 2 are free, 3rd is $75 and each
additional is an additional $25
Vehicle Impounding Fee (§72.33)
Delinquent Utility Assessment
Notification
$85 for tow:
$25 per day storage (applied the first day)
$25 Tow Company Administration
$15 SAPD Administration
$25
PARK CONTRIBUTION: (§151.12)
Type Amount
Single Family lot $1,500/unit
Duplex lot $1,800/unit
Townhouse development $2,000/unit
Mobile Home $1,000/unit
Multi-family, apartment or condominium $1,500/unit
Commercial/Industrial $4,000 per acre
RIGHT OF WAY:
Permit Amount
Registration Fee $40
Excavation Permit Fee:
Hole $125
Trench $70/100 lineal foot (plus hole fee)
Obstruction permit base fee $50 plus $.05/lineal foot
Permit Extension fee $55
Street Excavation (§150.031)
$50
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UTILITIES:
FIRE CONTROL DEVICES: (billed quarterly)
Size Amount
2" $7.88
3" $10.50
4" $15.75
6" $21.00
8" $26.25
10" $42.00
IRRIGATION RATES: $3.96 $4.12 per 1,000 gallons
SEWER CONNECTION CHARGE PERMIT: $850.00-per Metropolitan
Council Environmental Services (MCES)
units intial or re-determination.
SEWER RATES: $4.19 $4.38 per 1,000 gallons
STORM WATER FACILITIES: (billed quarterly)
Classification Charge (per acre)
1 $59.75 $61.20
2 $57.60 $59.00
3 $57.60 $59.00
4 $137.58 $140.93
5 $175.48 $179.75
6 $219.23 $224.55
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WATER CONNECTION CHARGE PERMIT: $450.00 $850.00-per
Metropolitan Council Environmental
Services (MCES) units intial or re
determination.
WATER METERS:
SIZE METER PRICE RADIO TOTAL COST
5/8” $130.00 $130.00 $260.00
¾” $140.00 $130.00 $270.00
1” $190.00 $130.00 $320.00
1 ½ ” $505.00 $130.00 $635.00
2” $690.00 $130.00 $820.00
WATER RATES: (billed quarterly)
RESIDENTIAL Consumption (gallons) Rate/per 1,000 gallons
TIER 1 0-7,500 $3.10$2.98
TIER II 7,500-15,000 $3.27 $3.14
TIER III 15,000-22,500 $3.59$3.45
TIER IV 22,500-30,000 $4.12$3.96
TIER V Over 30,000 $5.17$4.97
COMMERCIAL Consumption (gallons) Rate/per 1,000 gallons
TIER 1 0-7,500 $3.10$2.98
TIER II 7,500-53,500 $3.27 $3.14
TIER III 53,500-175,000 $3.59$3.45
TIER IV 175,000-300,000 $4.12$3.96
TIER V Over 300,000 $5.17$4.97
WILSHIRE Consumption( gallons) Rate/per 1,000 gallons
TIER 1 0-7,500 $3.10$2.98
TIER II 7,500-510,000 $3.27 $3.14
TIER III 510,000-610,000 $3.59$3.45
TIER IV 610,000-710,000 $4.12$3.96
TIER V Over 710,000 $5.17$4.97
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SAVHS Consumption (gallons) Rate/per 1,000 gallons
TIER 1 0-7,500 $3.10$2.98
TIER II 7,500-850,000 $3.27 $3.14
TIER III 850,000-1,150,000 $3.59$3.45
TIER IV 1,150,000-1,450,000 $4.12$3.96
TIER V Over 1,450,000 $5.17$4.97
HAPPY’S Consumption (gallons) Rate/per 1,000 gallons
TIER 1 0-7,500 $3.10$2.98
TIER II 7,500-3,650,000 $3.27 $3.14
TIER III 3,650,000-4,650,000 $3.59$3.45
TIER IV 4,650,000-5,650,000 $4.12$3.96
TIER V Over 5,650,000 $5.17$4.97
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CITY OF ST. ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-079
A RESOLUTION APPROVING THE 2016 FEE SCHEDULE
WHEREAS, the City of St. Anthony Village has approved an ordinance allowing fees
to be established by resolution; and
WHEREAS, staff has established a fee schedule that can be amended annually; and
WHEREAS, attached is the 2016 Fee Schedule.
Adopted this 8th day of December, 2014.
________________________________
Jerome O. Faust, Mayor
ATTEST: ________________________________
Nicole Miller, City Clerk
Reviewed for administration: ___________________________________
Mark Casey, City Manager
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128
CITY OF SAINT ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-080
A RESOLUTION APPROVING THE 2016 APPOINTMENTS AND APPOINTING THE
CHAIR AND VICE CHAIR TO THE PARKS COMMISSION
WHEREAS, the City Council conducted interviews for the 2016 appointments to the Parks
Commission; and
WHEREAS, the City Council recommended appointing Scott Bentz and Therese Bellinger to
the Parks Commission beginning January 1, 2016 for a three year term; and
WHEREAS, in accordance with St. Anthony City Code §32.26, Appointing of the Chair and
Vice Chair the City Council appoints Scott Bentz as Chair and Erin Jordahl
Redlin as Vice Chair of the Parks Commission for 2016.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of St. Anthony
Village hereby appoints Scott Bentz and Therese Bellinger for 3 year term and Scott Bentz as
Chair and Erin Jordahl Redlin as Vice Chair for the Parks Commission for 2016.
Adopted this 8th day of December, 2015.
_____________________________
Jerome O. Faust, Mayor
ATTEST:____________________________
Nicole Miller, City Clerk
Reviewed for administration: ______________________________
Mark Casey, City Manager
129
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130
CITY OF ST. ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-081
A RESOLUTION APPROVING THE 2016 APPOINTMENTS AND APPOINTING THE
CHAIR AND VICE CHAIR TO THE PLANNING COMMISSION
WHEREAS, the City Council conducted interviews for the 2016 appointments to the Planning
Commission; and
WHEREAS, the City Council recommended appointing Marcey Westrick, Mark Kalar and
Marshall Lichty to the Planning Commissioner beginning January 1, 2016 for a
three year term; and
WHEREAS, in accordance with St. Anthony City Code §32.07, Planning Commission Bylaws,
the City Council recommends appointing Jim Gondorchin as Chair and Dominic
Papatola as Vice Chair for the Planning Commission for 2016.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of St. Anthony
Village hereby appoints Marcey Westrick, Mark Kalar and Marshall Lichty for 3 year terms and
Jim Gondorchin as Chair and Dominic Papatola as Vice Chair for the Planning Commission for
2016.
Adopted this 8th day of December, 2015.
_________________________________________
Jerome O. Faust, Mayor
ATTEST:____________________________
Nicole Miller, City Clerk
Review for Administration: _________________________________________
Mark Casey, City Manager
131
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132
REQUEST FOR COUNCIL CONSIDERATION
Meeting Date: December 8, 2015
Ordinance 2015-06 – Approving CenturyLink Franchise Agreement and Findings of Fact
OVERVIEW:
In front of you this evening is the third and final reading of an ordinance to approve the CenturyLink
Franchise Agreement and Findings of Fact. The first reading was held at the November 10, 2015 St.
Anthony City Council meeting, and the second reading was held at the November 24, 2015 St.
Anthony City Council meeting. Attached is the proposed Ordinance.
Following the adoption of the ordinance, the ordinance goes into effect upon publication in the St.
Anthony Bulletin which is the official newspaper for the City of St. Anthony.
133
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134
ORDINANCE NO. 2015-06
CITY OF ST. ANTHONY
CABLE TELEVISION FRANCHISE ORDINANCE
Date: November 10, 2015
Prepared by:
Michael R. Bradley
Bradley Hagen & Gullikson, LLC
1976 Wooddale Drive, Suite 3A
Woodbury, MN 55125
Telephone: (651) 379-0900
E-Mail:mike@bradleylawmn.com
135
Table of Contents
STATEMENT OF INTENT AND PURPOSE ............................................................................... 1
SECTION 1. SHORT TITLE AND DEFINITIONS ..................................................................... 1
1. Short Title ............................................................................................................................... 1
2. Definitions............................................................................................................................... 1
SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS................................ 5
1. Grant of Franchise................................................................................................................... 5
2. Grant of Nonexclusive Authority............................................................................................ 7
3. Lease or Assignment Prohibited ............................................................................................. 7
4. Franchise Term ....................................................................................................................... 7
5. Compliance with Applicable Laws, Resolutions and Ordinances .......................................... 7
6. Rules of Grantee ..................................................................................................................... 8
7. Territorial Area Involved ........................................................................................................ 9
8. Written Notice ....................................................................................................................... 10
SECTION 3. CONSTRUCTION STANDARDS ........................................................................ 11
1. Registration, Permits and Construction Codes .................................................................. 11
2. Repair of Rights-of-Way and Property .............................................................................. 11
3. Conditions on Right-of-Way Use ...................................................................................... 12
4. Undergrounding of Cable .................................................................................................. 12
5. Installation of Facilities...................................................................................................... 13
6. Safety Requirements .......................................................................................................... 13
SECTION 4. DESIGN PROVISIONS ........................................................................................ 13
1. System Design. .................................................................................................................. 13
2. Interruption of Service ....................................................................................................... 13
3. Technical Standards ........................................................................................................... 14
4. Special Testing ................................................................................................................... 14
5. Drop Testing and Replacement .......................................................................................... 14
6. FCC Reports....................................................................................................................... 14
7. Interconnection .................................................................................................................. 14
8. Nonvoice Return Capability .............................................................................................. 15
9. Lockout Device .................................................................................................................. 15
SECTION 5. SERVICE PROVISIONS ..................................................................................... 15
1. Regulation of Service Rates .................................................................................................. 15
2. Sales Procedures ................................................................................................................... 15
136
3. Subscriber Inquiry and Complaint Procedures ..................................................................... 15
4. Subscriber Contracts ............................................................................................................. 16
5. Refund Policy........................................................................................................................ 16
6. Late Fees ............................................................................................................................... 16
7. Office Policy ......................................................................................................................... 17
SECTION 6. ACCESS CHANNEL(S) PROVISIONS ............................................................... 17
1. Public, Educational and Government Access ....................................................................... 17
2. Charges for Use..................................................................................................................... 20
3. Access Rules ......................................................................................................................... 20
4. Access Support...................................................................................................................... 20
5. Regional Channel 6 ............................................................................................................... 20
6. State and Federal Law compliance ....................................................................................... 20
7. Future PEG Funding Obligations.......................................................................................... 20
8. Additional Payments ............................................................................................................. 21
SECTION 7. SERVICES TO CITY ............................................................................................ 21
1. Twin Cities Metro PEG Interconnect Network ................................................................. 21
2. Cable Service to Public Buildings ..................................................................................... 21
SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS ................................... 22
1. Administration of Franchise ................................................................................................. 22
2. Delegated Authority .............................................................................................................. 22
3. Franchise Fee ........................................................................................................................ 22
4. Access to Records ................................................................................................................. 24
5. Reports and Maps ................................................................................................................. 24
6. Periodic Evaluation ............................................................................................................... 24
SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS ............................ 25
1. Performance Bond ................................................................................................................ 25
2. Letter of Credit ...................................................................................................................... 26
3. Indemnification of City ......................................................................................................... 28
4. Insurance ............................................................................................................................... 29
SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF
FRANCHISE ................................................................................................................................ 29
1. City's Right to Revoke .......................................................................................................... 29
2. Procedures for Revocation .................................................................................................... 30
3. Abandonment of Service....................................................................................................... 30
4. Removal After Abandonment, Termination or Forfeiture .................................................... 30
137
5. Sale or Transfer of Franchise ................................................................................................ 31
SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS ...................................................... 32
1. Discriminatory Practices Prohibited ..................................................................................... 32
2. Subscriber Privacy ................................................................................................................ 33
SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS ....................... 33
1. Unauthorized Connections or Modifications Prohibited ...................................................... 33
2. Removal or Destruction Prohibited ...................................................................................... 33
3. Penalty................................................................................................................................... 34
SECTION 13. MISCELLANEOUS PROVISIONS .................................................................... 34
1. Franchise Renewal ................................................................................................................ 34
2. Work Performed by Others ................................................................................................... 34
3. Amendment of Franchise Ordinance .................................................................................... 34
4. Compliance with Federal, State and Local Laws .................................................................. 34
5. Nonenforcement by City ....................................................................................................... 35
6. Rights Cumulative ................................................................................................................ 35
7. Grantee Acknowledgment of Validity of Franchise ............................................................. 35
8. Force Majeure ....................................................................................................................... 35
SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS ........ 35
1. Publication: Effective Date ................................................................................................... 35
2. Acceptance ............................................................................................................................ 36
EXHIBIT A - INDEMNITY AGREEMENT ....................................................................... Ex. A 1
138
ORDINANCE NO. 2015-06
AN ORDINANCE GRANTING A FRANCHISE TO QWEST BROADBAND SERVICES,
INC., D/B/A CENTURYLINK, TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE
COMMUNICATIONS SYSTEM IN THE CITY OF ST. ANTHONY; SETTING FORTH
CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR
REGULATION AND USE OF THE SYSTEM AND THE PUBLIC RIGHTS-OF-WAY IN
CONJUNCTION WITH THE CITY’S RIGHT-OF-WAY ORDINANCE, IF ANY, AND
PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS HEREIN;
The City Council of the City of St. Anthony ordains:
STATEMENT OF INTENT AND PURPOSE
Qwest Broadband Services, Inc., d/b/a CenturyLink (“Grantee”), applied for a cable franchise to
serve the City. The City will adopt separate findings related to the application and the decision
to grant a cable franchise to Grantee, which shall be incorporated herewith by reference. The
City intends, by the adoption of this Franchise, to bring about competition in the delivery of
cable services in the City.
Adoption of this Franchise is, in the judgment of the Council, in the best interests of the City and
its residents.
SECTION 1. SHORT TITLE AND DEFINITIONS
1. Short Title. This Franchise Ordinance shall be known and cited as the
CenturyLink Cable Franchise Ordinance.
2. Definitions. For the purposes of this Franchise, the following terms, phrases,
words, and their derivations shall have the meaning given herein. When not inconsistent with
the context, words in the singular number include the plural number. The word “shall” is always
mandatory and not merely directory. The word “may” is directory and discretionary and not
mandatory.
a. “Basic Cable Service” means any service tier which includes the lawful
retransmission of local television broadcast signals and any public, educational,
and governmental access programming required by the Franchise to be carried on
the basic tier. Basic Cable Service as defined herein shall not be inconsistent with
47 U.S.C. § 543(b)(7).
b. “City” means City of St. Anthony, a municipal corporation, in the State of
Minnesota, acting by and through its City Council, or its lawfully appointed
designee.
c. “City Council” means the governing body of the City.
139
d. “Cable Service” or “Service” means the provision of communications and/or
entertainment services as “Cable Service” is defined by Minn. Stat. § 238.01 et
seq. and 47 U.S.C § 521 et seq., as may be amended from time to time, but
including Institutional Network services. Cable Service shall also include any
video programming service for which a franchise from a local government is
permitted under state law.
e. “Cable System” or “System” means a system of antennas, cables, wires, lines,
towers, waveguides, or other conductors, Converters, equipment, or facilities
located in City and designed and constructed for the purpose of producing,
receiving, transmitting, amplifying, or distributing audio, video, and data. System
as defined herein shall not be inconsistent with the definitions set forth in Minn.
Stat. § 238.02, subd. 3 and 47 U.S.C. § 522(7). This definition shall include any
facility that is a “cable system” under federal law or a “cable communications
system” under state law.
f. “Commercial Need” or “Marketplace Need” means such need or market demand
which City and Grantee may jointly determine requires action or performance by
Grantee as specifically set forth in this Franchise. Such determination shall be
based upon evidence and information presented by City, Grantee and other
interested parties at a duly noticed public proceeding. Grantee shall have an
opportunity to present evidence regarding the level of market demand, the cost of
meeting such demand and the availability of technologies to meet such demand.
Any decision regarding Commercial or Marketplace Need which requires action
by Grantee shall not be unreasonable.
g. “Commission” means the North Suburban Communications Commission, a
municipal Joint Powers Commission.
h. “Converter” means an electronic device which converts signals to a frequency
acceptable to a television receiver of a Subscriber and by an appropriate selector
permits a Subscriber to view all Subscriber signals included in the service.
i. “Drop” means the cable that connects the ground block on the Subscriber's
residence or institution to the nearest feeder cable of the System.
j. “FCC” means the Federal Communications Commission and any legally
appointed, designated or elected agent or successor.
k. “Franchise” or “Cable Franchise” means this ordinance and the regulatory and
contractual relationship established hereby.
l. “Grantee” is Qwest Broadband Services, Inc., d/b/a CenturyLink, its lawful
successors, transferees or assignees.
140
m. “Gross Revenues” shall be defined as and shall be construed broadly to include all
revenues derived directly or indirectly by Grantee and/or an Affiliate that is a
cable operator of the Cable System, from the operation of Grantee’s Cable System
to provide Cable Services within the City (including cash, credits, property or
other consideration of any kind or nature). Gross revenues include, by way of
illustration and not limitation: monthly fees for Cable Services, regardless of
whether such Cable Services are provided to residential or commercial customers,
including revenues derived from the provision of all Cable Services (including but
not limited to pay or premium Cable Services, digital Cable Services, pay-per-
view, pay-per-event and video-on-demand Cable Services); installation,
reconnection, downgrade, upgrade or similar charges associated with changes in
subscriber Cable Service levels; fees paid to Grantee for channels designated for
commercial/leased access use; converter, remote control, lockout device and other
Cable Service equipment rentals and/or leases or sales; advertising revenues
received or derived by Grantee and/or its Affiliates, including but not limited to,
rep fees, Affiliate fees, rebates and commissions, but excluding unaffiliated
agency fees; late fees, convenience fees and administrative fees; revenues from
program guides; franchise fees; and commissions from home shopping channels
and other revenue sharing arrangements. Gross Revenues subject to franchise
fees shall include revenues derived from sales of advertising that run on Grantee’s
Cable System within the City and shall be allocated on a pro rata basis using total
Cable Service subscribers reached by the advertising. Additionally, Grantee
agrees that Gross Revenues subject to franchise fees shall include all commissions
paid to third parties associated with sales of advertising on the Cable System
within the City allocated according to this paragraph using total Cable Service
subscribers reached by the advertising. Gross revenues shall not include: actual
bad debt write-offs, provided, however, that all or part of any such actual bad debt
that is written off but subsequently collected shall be included in Gross Revenues
in the period collected; and any taxes on services furnished by Grantee imposed
by any municipality, state or other governmental unit, provided that franchise fees
shall not be regarded as such a tax.
(i) To the extent revenues are received by Grantee for the provision of a
discounted bundle of services which includes Cable Services and non-
Cable Services, Grantee shall calculate revenues to be included in Gross
Revenues using a methodology that allocates revenue on a pro rata basis
when comparing the bundled service price and its components to the sum
of the most recent published rate card rate for the components, except it is
expressly understood that equipment may be subject to inclusion in the
bundled price at full rate card value. This calculation shall be applied to
every bundled service package containing Cable Service from which
Grantee receives or derives revenues in the City, and must be updated
within sixty (60) days of the date any rate change for cable and/or non-
cable services is implemented for a service package containing Cable
Service or the date any rate change is implemented for any service
141
included in a service package that contains Cable Service. The NSCC
reserves its right to review and to challenge Grantee’s calculations.
(ii) For purposes of this definition, the term “Affiliates” means any person(s)
and/or entity(ies) who own or control, are owned or controlled by or are
under common ownership or control with Grantee but does not include
affiliated entities that are not directly or indirectly involved with the
programming, use, management, operation, construction, repair and/or
maintenance of Grantee Corporation’s cable systems.
(iii) Resolution of any disputes over the classification of revenue should first
be attempted by agreement of the Parties, but should no resolution be
reached, the Parties agree that reference shall be made to generally
accepted accounting principles (“GAAP”) as promulgated and defined by
the Financial Accounting Standards Board (“FASB”), Emerging Issues
Task Force (“EITF”) and/or the U.S. Securities and Exchange
Commission (“SEC”). Notwithstanding the forgoing, the City and/or the
Commission reserves its right to challenge Grantee’s calculation of Gross
Revenues, including the use or interpretation of GAAP as promulgated
and defined by the FASB, EITF and/or the SEC.
n. “Household” means a distinct address in the Qwest Corporation (“QC”) network
database, whether a residence or small business, subscribing to or being offered
cable service. Grantee represents and warrants that it has access to the QC
network database and shall demonstrate to the City’s reasonable satisfaction how
the data required in Section 2 are calculated and reported using the QC network
database.
o. “Installation” means the connection of the System from feeder cable to the point
of connection with the Subscriber Converter or other terminal equipment.
p. “Lockout Device” means an optional mechanical or electrical accessory to a
Subscriber's terminal which inhibits the viewing of a certain program, certain
channel, or certain channels provided by way of the Cable Communication
System.
q. “North Suburbs Access Corporation” means that certain non-profit corporation or
its lawful successor, designee, or assignee, which is delegated authority and
responsibility for providing certain community programming functions including
public access.
r. “North Suburban System” means the Cable System located in those municipalities
collectively comprising the North Suburban Cable Commission.
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s. “Pay Television” means the delivery over the System of pay-per-channel or pay-
per-program audio-visual signals to Subscribers for a fee or charge, in addition to
the charge for Basic Cable Service or Cable Programming Services.
t. “Person” is any person, firm, partnership, association, corporation, company, or
other legal entity, but does not include the City or Commission.
u. “Right-of-Way” or “Rights-of-Way” means the area on, below, or above any real
property in City in which the City has an interest including, but not limited to any
street, road, highway, alley, sidewalk, parkway, park, skyway, or any other place,
area, or real property owned by or under the control of City, including other
dedicated Rights-of-Way for travel purposes and utility easements.
v. “Right-of-Way Ordinance” means the ordinance codifying requirements
regarding regulation, management and use of Rights-of-Way in City, including
registration and permitting requirements.
w. “Set Top Box” means an electronic device (sometimes referred to as a receiver)
which may serve as an interface between a System and a Subscriber’s television
monitor and which may convert signals to a frequency acceptable to a television
monitor of a Subscriber and may, by an appropriate selector, permit a Subscriber
to view all signals of a particular service
x. “Subscriber” means any Person who lawfully receives service via the System. In
the case of multiple office buildings or multiple dwelling units, the “Subscriber”
means the lessee, tenant or occupant.
SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS
1. Grant of Franchise.
a. This Franchise is granted pursuant to the terms and conditions contained herein.
b. Nothing in this Franchise shall be deemed to waive the lawful requirements of
any generally applicable City ordinance existing as of the Effective Date.
c. Each and every term, provision or condition herein is subject to the provisions of
state law, federal law, and local ordinances and regulations. The Municipal Code
of the City, as the same may be amended from time to time, is hereby expressly
incorporated into this Franchise as if fully set out herein by this reference.
Notwithstanding the foregoing, the City may not unilaterally alter the material
rights and obligations of Grantee under this Franchise.
d. This Franchise shall not be interpreted to prevent the City from imposing
additional lawful conditions, including additional compensation conditions for use
of the Rights-of-Way, should Grantee provide service other than cable service.
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e. The parties acknowledge that Grantee intends that Qwest Corporation (“QC”), an
affiliate of Grantee, will be primarily responsible for the construction and
installation of the facilities in the Rights-of-Way, constituting the cable
communications system, which will be utilized by Grantee to provide cable
service. Grantee promises, as a condition of exercising the privileges granted by
this Franchise, that any affiliate of the Grantee, including QC, directly or
indirectly involved in the construction, management, or operation of the cable
communications system will comply with all applicable federal, state and local
laws, rules and regulations regarding the use of the City’s rights of way. The
City agrees that to the extent QC violates any applicable laws, rules and
regulations, the City shall first seek compliance directly from QC. In the event,
the City cannot resolve these violations or disputes with QC, or any other affiliate
of Grantee, then the City may look to Grantee to ensure such compliance. Failure
by Grantee to ensure QC’s or any other affiliate’s compliance with applicable
laws, rules and regulations shall be deemed a material breach of this Franchise by
Grantee. To the extent Grantee constructs and installs facilities in the rights-of-
way, such installation will be subject to the terms and conditions contained herein.
f. No rights shall pass to Grantee by implication. Without limiting the foregoing, by
way of example and not limitation, this Franchise shall not include or be a
substitute for:
(i) Any other permit or authorization required for the privilege of transacting
and carrying on a business within the City that may be required by the
ordinances and laws of the City;
(ii) Any permit, agreement, or authorization required by the City for Right-of-
Way users in connection with operations on or in Rights-of-Way or public
property including, by way of example and not limitation, street cut
permits; or
(iii) Any permits or agreements for occupying any other property of the City or
private entities to which access is not specifically granted by this
Franchise including, without limitation, permits and agreements for
placing devices on poles, in conduits or in or on other structures.
g. This Franchise is intended to convey limited rights and interests only as to those
Rights-of-Way in which the City has an actual interest. It is not a warranty of title
or interest in any Right-of-Way; it does not provide the Grantee with any interest
in any particular location within the Right-of-Way; and it does not confer rights
other than as expressly provided in the grant hereof.
h. This Franchise does not authorize Grantee to provide telecommunications service,
or to construct, operate or maintain telecommunications facilities. This Franchise
is not a bar to imposition of any lawful conditions on Grantee with respect to
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telecommunications, whether similar, different or the same as the conditions
specified herein. This Franchise does not relieve Grantee of any obligation it may
have to obtain from the City an authorization to provide telecommunications
services, or to construct, operate or maintain telecommunications facilities, or
relieve Grantee of its obligation to comply with any such authorizations that may
be lawfully required.
2. Grant of Nonexclusive Authority.
a. The Grantee shall have the right and privilege, subject to the permitting and other
lawful requirements of City ordinance, rule or procedure, to construct, erect, and
maintain, in, upon, along, across, above, over and under the Rights-of-Way in
City a Cable System and shall have the right and privilege to provide Cable
Service. The System constructed and maintained by Grantee or its agents shall
not interfere with other uses of the Rights-of-Way. Grantee shall make use of
existing poles and other above and below facilities available to Grantee to the
extent it is technically and economically feasible to do so.
b. Notwithstanding the above grant to use Rights-of-Way, no Right-of-Way shall be
used by Grantee if City determines that such use is inconsistent with the terms,
conditions, or provisions by which such Right-of-Way was created or dedicated,
or with the present use of the Right-of-Way.
c. This Franchise shall be nonexclusive, and City reserves the right to grant a
franchise to any Person at any time during the period of this Franchise for the
provision of Cable Service. The terms and conditions of any such franchise shall
be, when taken as a whole, no less burdensome or more beneficial than those
imposed upon Grantee pursuant to this Franchise.
3. Lease or Assignment Prohibited. No Person may lease Grantee’s System for the
purpose of providing Service until and unless such Person shall have first obtained and shall
currently hold a valid Franchise or other lawful authorization containing substantially similar
burdens and obligations to this Franchise. Any assignment of rights under this Franchise shall be
subject to and in accordance with the requirements of Section 10, Paragraph 5.
4. Franchise Term. This Franchise shall be in effect for a period of five (5) years
from the date of acceptance by Grantee, unless sooner renewed, revoked or terminated as herein
provided.
5. Compliance with Applicable Laws, Resolutions and Ordinances.
a. The terms of this Franchise shall define the contractual rights and obligations of
Grantee with respect to the provision of Cable Service and operation of the
System in City. However, the Grantee shall at all times during the term of this
Franchise be subject to all lawful exercise of the police power, statutory rights,
local ordinance-making authority, and eminent domain rights of City. Except as
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provided below, any modification or amendment to this Franchise, or the rights or
obligations contained herein, must be within the lawful exercise of City’s police
power, in which case the provision(s) modified or amended herein shall be
specifically referenced in an ordinance of the City authorizing such amendment or
modification. This Franchise may also be modified or amended with the written
consent of Grantee as provided in Section 13, Paragraph 3 herein.
b. Grantee shall comply with the terms of any City ordinance or regulation of
general applicability which addresses usage of the Rights-of-Way within City
which may have the effect of superseding, modifying or amending the terms of
Section 3 and/or Section 8, Paragraph 5(c) herein, except that Grantee shall not,
through application of such City ordinance or regulation of Rights-of-Way, be
subject to additional burdens with respect to usage of Rights-of-Way which
exceed burdens on similarly situated Rights-of-Way users.
c. In the event of any conflict between Section 3 and/or Section 8, Paragraph 5(c) of
this Franchise and any City ordinance or regulation which addresses usage of the
Rights-of-Way, the conflicting terms in Section 3 and/or Section 8, Paragraph
5(c) of this Franchise shall be superseded by such City ordinance or regulation,
except that Grantee shall not, through application of such City ordinance or
regulation of Rights-of-Way, be subject to additional burdens with respect to
usage of Rights-of-Way which exceed burdens on similarly situated Rights-of-
Way users.
d. In the event any City ordinance or regulation which addresses usage of the
Rights-of-Way adds to, modifies, amends, or otherwise differently addresses
issues addressed in Section 3 and/or Section 8, Paragraph 5(c) of this Franchise,
Grantee shall comply with such ordinance or regulation of general applicability,
regardless of which requirement was first adopted except that Grantee shall not,
through application of such City ordinance or regulation of Rights-of-Way, be
subject to additional burdens with respect to usage of Rights-of-Way which
exceed burdens on similarly situated Rights-of-Way users.
e. In the event Grantee cannot determine how to comply with any Right-of-Way
requirement of City, whether pursuant to this Franchise or other requirement,
Grantee shall immediately provide written notice of such question, including
Grantee’s proposed interpretation, to the City with copy to the North Suburban
Cable Communications Commission, in accordance with Section 2, Paragraph 8.
The City or Commission shall provide a written response within fourteen (14)
days of receipt indicating how the requirements cited by Grantee apply. Grantee
may proceed in accordance with its proposed interpretation in the event a written
response is not received within seventeen (17) days of mailing or delivering such
written question.
6. Rules of Grantee. The Grantee shall have the authority to promulgate such rules,
regulations, terms and conditions governing the conduct of its business as shall be reasonably
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necessary to enable said Grantee to exercise its rights and perform its obligations under this
Franchise and to assure uninterrupted service to each and all of its Subscribers; provided that
such rules, regulations, terms and conditions shall not be in conflict with provisions hereto, the
rules of the FCC, the laws of the State of Minnesota, City, or any other body having lawful
jurisdiction.
7. Territorial Area Involved. This Franchise is granted for the corporate boundaries
of City, as it exists from time to time. In the event of annexation by City, or as development
occurs, any new territory shall become part of the territory for which this Franchise is granted,
subject Paragraph 7(a) (Reasonable Build-Out of the Entire City) below. Access to cable
service shall not be denied to any group of potential residential cable Subscribers because of the
income of the residents of the area in which such group resides. .
a. Reasonable Build-Out of the Entire City. The Parties recognize that Grantee, or
its affiliate, has constructed a legacy communications system throughout the City
that is capable of providing voice grade service. The Parties further recognize that
Grantee or its affiliate must expend a significant amount of capital to upgrade its
existing legacy communications system and to construct new facilities to make it
capable of providing cable service. Further, there is no promise of revenues from
cable service to offset these capital costs. The Parties agree that the following is a
reasonable build-out schedule taking into consideration Grantee’s market success
and the requirements of Minnesota state law.
(i) Complete Equitable Build-Out. Grantee aspires to provide cable service
to all households within the City by the end of the initial term of this
Franchise. In addition, Grantee commits that a significant portion of its
investment will be targeted to areas below the median income in the City.
(ii) Initial Minimum Build-Out Commitment. Grantee agrees to be capable of
serving a minimum of fifteen percent (15%) of the City’s households with
cable service during the first two (2) years of the initial Franchise term,
provided, however that Grantee will make its best efforts to complete such
deployment within a shorter period of time. This initial minimum build-
out commitment shall include deployment to households equitably
throughout the City and to a significant number of households below the
medium income in the City. Nothing in this Franchise shall restrict
Grantee from serving additional households in the City with cable service;
(iii) Quarterly Meetings. Commencing January 1, 2016, and continuing
throughout the term of this Franchise, Grantee shall meet quarterly with
the Executive Director of the Commission. At each quarterly meeting,
Grantee shall present information acceptable to the City/Commission (to
the reasonable satisfaction of the City/Commission) showing the number
of households Grantee is presently capable of serving with cable service
and the number of households that Grantee is actually serving with cable
service. Grantee shall also present information acceptable to the
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City/Commission (to the reasonable satisfaction of the City/Commission)
that Grantee is equitably serving all portions of the City in compliance
with this Section 2, Paragraph 7. In order to permit the City/Commission
to monitor and enforce the provisions of this section and other provisions
of this Franchise, the Grantee shall promptly, upon reasonable demand,
show to the City/Commission (to the City/Commission’s reasonable
satisfaction) maps and provide other documentation showing exactly
where within the City the Grantee is currently providing cable service;
(iv) Additional Build-Out Based on Market Success. If, at any quarterly
meeting, Grantee is actually serving twenty seven and one-half percent
(27.5%) of the Households capable of receiving cable service, then
Grantee agrees the minimum build-out commitment shall increase to
include all of the Households then capable of receiving cable service plus
an additional fifteen (15%) of the total households in the City, which
Grantee agrees to serve within two (2) years from the quarterly meeting;
provided, however, the Grantee shall make its best efforts to complete
such deployment within a shorter period of time. For example, if, at a
quarterly meeting with the Commission’s Executive Director, Grantee
shows that it is capable of serving sixty percent of the households in the
City with cable service and is actually serving thirty percent of those
households with cable service, then Grantee will agree to serve an
additional fifteen percent of the total households in the City no later than 2
years after that quarterly meeting (a total of 75% of the total households).
This additional build-out based on market success shall continue until
every household in the City is served;
(v) Line Extension. Grantee shall not have a line extension obligation until
the first date by which Grantee is providing Cable Service to more than
fifty percent (50%) of all subscribers receiving facilities based cable
service from both the Grantee and any other provider(s) of cable service
within the City. At that time, the City/Commission, in its reasonable
discretion and after meeting with Grantee, shall determine the timeframe
to complete deployment to the remaining households in the City, including
a density requirement that is the same or similar to the requirement of the
incumbent franchised cable operator.
8. Written Notice. All notices, reports, or demands required to be given in writing
under this Franchise shall be deemed to be given when delivered personally to any officer of
Grantee or City's Administrator of this Franchise or forty-eight (48) hours after it is deposited in
the United States mail in a sealed envelope, with registered or certified mail postage prepaid
thereon, addressed to the party to whom notice is being given, as follows:
If to City: City of St. Anthony
3301 Silver Lake Road NE
St. Anthony, Minnesota 55418
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Attention: City Manager/Administrator
With copies to: North Suburban Cable Communications Commission
2670 Arthur Street
Roseville, Minnesota 55113
And to: Michael R. Bradley
Bradley Hagen & Gullikson, LLC
1976 Wooddale Drive, Suite 3A
Woodbury, Minnesota 55125
If to Grantee: Qwest Broadband Services, Inc., d/b/a CenturyLink
1801 California St., 10th Flr.
Denver, CO 80202
Attn: Public Policy
With copies to: Qwest Broadband Services Inc., d/b/a CenturyLink
200 S. 5th Street, 21st Flr.
Minneapolis, MN 55402
Attn: Public Policy
Such addresses may be changed by either party upon notice to the other party given as provided
in this Section.
SECTION 3. CONSTRUCTION STANDARDS
1. Registration, Permits and Construction Codes
a. Grantee shall strictly adhere to all state and local laws and building and zoning
codes currently or hereafter applicable to location, construction, installation,
operation or maintenance of the System in City and give due consideration at all
times to the aesthetics of the property.
b. Failure to obtain permits or comply with permit requirements shall be grounds for
revocation of this Franchise or any lesser sanctions provided herein or in any
other applicable law.
2. Repair of Rights-of-Way and Property. Any and all Rights-of-Way, or public or private
property, which are disturbed or damaged during the construction, repair, replacement,
relocation, operation, maintenance, expansion, extension or reconstruction of the System
shall be promptly and fully restored by Grantee, at its expense, to the same condition as
that prevailing prior to Grantee's work, as determined by City. If Grantee shall fail to
promptly perform the restoration required herein, after written request of City and
reasonable opportunity to satisfy that request, City shall have the right to put the Rights-
of-Way, public, or private property back into good condition. In the event City
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determines that Grantee is responsible for such disturbance or damage, Grantee shall be
obligated to fully reimburse City for such restoration.
3. Conditions on Right-of-Way Use.
a. Nothing in this Franchise shall be construed to prevent City from constructing,
maintaining, repairing or relocating sewers; grading, paving, maintaining,
repairing, relocating and/or altering any Right-of-Way; constructing, laying down,
repairing, maintaining or relocating any water mains; or constructing,
maintaining, relocating, or repairing any sidewalk or other public work.
b. All System transmission and distribution structures, lines and equipment erected
by the Grantee within City shall be located so as not to obstruct or interfere with
the use of Rights-of-Way except for normal and reasonable obstruction and
interference which might occur during construction and to cause minimum
interference with the rights of property owners who abut any of said Rights-of-
Way and not to interfere with existing public utility installations.
c. If at any time during the period of this Franchise City shall elect to alter or change
the grade or location of any Right-of-Way, the Grantee shall, at its own expense,
upon reasonable notice by City, remove and relocate its poles, wires, cables,
conduits, manholes and other fixtures of the System and in each instance comply
with the reasonable and lawful standards and specifications of City.
d. The Grantee shall not place poles, conduits, or other fixtures of System above or
below ground where the same will interfere with any gas, electric, telephone,
water or other utility fixtures and all such poles, conduits, or other fixtures placed
in any Right-of-Way shall be so placed as to comply with all reasonable and
lawful requirements of City.
e. The Grantee shall, upon request of any Person holding a moving permit issued by
City, temporarily move its wires or fixtures to permit the moving of buildings
with the expense of such temporary removal to be paid by the Person requesting
the same, and the Grantee shall be given not less than ten (10) days advance
written notice to arrange for such temporary changes.
f. The Grantee shall have the authority to trim any trees upon and overhanging the
Rights-of-Way of City so as to prevent the branches of such trees from coming in
contact with the wires and cables or other facilities of the Grantee.
g. Grantee shall use its best efforts to give reasonable prior notice to any adjacent
private property owners who will be negatively affected or impacted by Grantee’s
work in the Rights-of-Way.
4. Undergrounding of Cable. Unless otherwise required by action of City Council, Grantee
must place newly constructed facilities underground in areas of City where all other
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utility lines are placed underground. Amplifier boxes and pedestal mounted terminal
boxes may be placed above ground if existing technology reasonably requires, but shall
be of such size and design and shall be so located as not to be unsightly or unsafe, all
pursuant to plans submitted with Grantee’s permit application(s) and approved by City.
5. Installation of Facilities. No poles, conduits, amplifier boxes, pedestal mounted terminal
boxes, similar structures, or other wire-holding structures shall be erected or installed by
the Grantee without required permit of City.
6. Safety Requirements.
a. The Grantee shall at all times employ ordinary and reasonable care and shall
install and maintain in use nothing less than commonly accepted methods and
devices for preventing failures and accidents which are likely to cause damage or
injuries.
b. The Grantee shall install and maintain its System and other equipment in
accordance with City’s codes and the requirements of the National Electric Safety
Code and all other applicable FCC, state and local regulations, and in such
manner that they will not interfere with City communications technology related
to health, safety and welfare of the residents.
c. All System structures, and lines, equipment and connections in, over, under and
upon the Rights-of-Way of City, wherever situated or located, shall at all times be
kept and maintained in good condition, order, and repair so that the same shall not
menace or endanger the life or property of City or any Person.
SECTION 4. DESIGN PROVISIONS
1. System Design.
a. Grantee shall develop, construct and operate a state-of-the-art cable
communications system, constructed in accordance with Section 2, Paragraph
(7)(a).
b. All final programming decisions remain the discretion of Grantee, provided that
Grantee notifies City and Subscribers in writing thirty (30) days prior to any
channel additions, deletions, or realignments, and further subject to Grantee’s
signal carriage obligations hereunder and pursuant to 47 U.S.C. §§ 531-536, and
further subject to City's rights pursuant to 47 U.S.C. § 545. Location and
relocation of the PEG Channels shall be governed by Section 6, Paragraph 1(d).
2. Interruption of Service. The Grantee shall interrupt service only for good cause
and for the shortest time possible. Such interruption shall occur during periods of minimum use
of the System. If service is interrupted for a total period of more than forty eight (48) hours in
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any thirty (30) day period, Subscribers shall be credited pro rata for such interruption, upon
request.
3. Technical Standards. The technical standards used in the operation of the System
shall comply, at minimum, with the technical standards promulgated by the FCC relating to
Cable Systems pursuant to Title 47, Sections 76.601 to 76.617, as applicable, as may be
amended or modified from time to time, which regulations are expressly incorporated herein by
reference.
4. Special Testing.
a. The City shall have the right to inspect all construction or installation work
performed pursuant to the provisions of the Franchise. In addition, the
City/Commission may require special testing of a location or locations within the
System if there is a particular matter of controversy or unresolved complaints
regarding such construction or installation work or pertaining to such location(s).
Demand for such special tests may be made on the basis of complaints received or
other evidence indicating an unresolved controversy or noncompliance. Such
tests shall be limited to the particular matter in controversy or unresolved
complaints. The City shall endeavor to so arrange its request for such special
testing so as to minimize hardship or inconvenience to Grantee or to the
Subscribers caused by such testing.
b. Before ordering such tests, Grantee shall be afforded thirty (30) days following
receipt of written notice to investigate and, if necessary, correct problems or
complaints upon which tests were ordered. The City shall meet with Grantee
prior to requiring special tests to discuss the need for such and, if possible,
visually inspect those locations which are the focus of concern. If, after such
meetings and inspections, City wishes to commence special tests and the thirty
(30) days have elapsed without correction of the matter in controversy or
unresolved complaints, the tests shall be conducted at Grantee’s expense by a
qualified engineer selected by City and Grantee, and Grantee shall cooperate in
such testing.
5. Drop Testing and Replacement. The Grantee shall replace, at no separate charge
to an individual Subscriber, all Drops and/or associated passive equipment incapable of passing
the full System capacity at the time a Subscriber upgrades.
6. FCC Reports. The results of any tests required to be filed by Grantee with the
FCC shall upon request of City also be filed with the City or its designee within ten (10) days of
the conduct of such tests.
7. Interconnection. The System servicing the Cities of Arden Hills, Falcon Heights,
Lauderdale, Little Canada, Mounds View, New Brighton, North Oaks, Roseville, and St.
Anthony shall continue to be completely interconnected. In addition, Grantee shall make
available for interconnection purposes one (1) channel for forward video purposes, one (1) six
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(6) MHz channel for return video purposes, one (1) channel for forward data or other purposes,
and one (1) channel for return data or other purposes between all Systems adjacent to the North
Suburban System and under common ownership with Grantee. This commitment may be
satisfied through the provision of the Twin Cities Metro PEG Interconnect Network, provided
Grantee agrees to allow all cities adjacent to the North Suburban System to participate.
8. Nonvoice Return Capability. Grantee is required to use cable and associated
electronics having the technical capacity for nonvoice return communications.
9. Lockout Device. Upon the request of a Subscriber, Grantee shall make available
a Lockout Device at no additional charge to Subscribers.
SECTION 5. SERVICE PROVISIONS
1. Regulation of Service Rates.
a. The City may regulate rates for the provision of Cable Service, equipment, or any
other communications service provided over the System to the extent allowed
under federal or state law(s). City reserves the right to regulate rates for any
future services to the extent permitted by law.
b. Grantee shall give City and Subscribers written notice of any change in a rate or
charge at least one billing cycle prior to the effective date of the change. Bills
must be clear, concise, and understandable, with itemization of all charges.
2. Sales Procedures. Grantee shall not exercise deceptive sales procedures when
marketing any of its services within City. In its initial communication or contact with a non-
Subscriber and in all general solicitation materials marketing the Grantee or its services as a
whole, Grantee shall inform the non-Subscriber of all levels of service available, including the
lowest priced and free service tiers. Grantee shall have the right to market door-to-door during
reasonable hours consistent with local ordinances and regulation.
3. Subscriber Inquiry and Complaint Procedures.
a. Grantee shall have a publicly listed toll-free telephone number which shall be
operated so as to receive Subscriber complaints and requests on a twenty-four
(24) hour-a-day, seven (7) days-a-week, 365 days a year basis. During normal
business hours, trained representatives of Grantee shall be available to respond to
Subscriber inquiries.
b. Grantee shall maintain adequate numbers of telephone lines and personnel to
respond in a timely manner to schedule service calls and answer Subscriber
complaints or inquiries in a manner consistent with regulations adopted by the
FCC and City where applicable and lawful. Under normal operating conditions,
telephone answer time by a customer representative, including wait time, shall not
exceed thirty (30) seconds when the connection is made. If the call needs to be
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transferred, transfer time shall not exceed thirty (30) seconds. These standards
shall be met no less than ninety (90) percent of the time under normal operating
conditions, measured on a quarterly basis. Under normal operating conditions,
the customer will receive a busy signal less than three (3) percent of the time.
Grantee shall respond to written complaints with copy to City or its designee
within thirty (30) days.
c. Subject to Grantee’s obligations pursuant to law regarding privacy of certain
information, Grantee shall prepare and maintain written records of all complaints
received from City and the resolution of such complaints, including the date of
such resolution. Such written records shall be on file at the office of Grantee.
Grantee shall provide City with a written summary of such complaints and their
resolution upon request of City. As to Subscriber complaints, Grantee shall
comply with FCC record-keeping regulations and make the results of such record-
keeping available to City upon request.
d. Subscriber requests for repairs shall be performed within thirty-six (36) hours of
the request unless conditions beyond the control of Grantee prevent such
performance. Grantee may schedule appointments for Installations and other
service calls either at a specific time or, at a maximum, during a four hour time
block during normal business hours. Grantee may also schedule service calls
outside normal business hours for the convenience of customers. Grantee shall
use its best efforts to not cancel an appointment with a customer after the close of
business on the business day prior to the scheduled appointment. If the installer
or technician is late and will not meet the specified appointment time, he/she must
use his/her best efforts to contact the customer and reschedule the appointment at
the sole convenience of the customer. Service call appointments must be met in a
manner consistent with FCC standards.
4. Subscriber Contracts. Grantee shall file with City any standard form Subscriber
contract utilized by Grantee. If no such written contract exists, Grantee shall file with the City a
document completely and concisely stating the length and terms of the Subscriber contract
offered to customers. The length and terms of any Subscriber contract(s) shall be available for
public inspection during normal business hours.
5. Refund Policy. In the event a Subscriber establishes or terminates service and
receives less than a full month's service, Grantee shall prorate the monthly rate on the basis of
the number of days in the period for which service was rendered to the number of days in the
billing.
6. Late Fees. Fees for the late payment of bills shall not be assessed until after the
service has been fully provided and, as of the due date of the bill notifying Subscriber of an
unpaid balance, the bill remains unpaid. Late Fees may not exceed the actual costs to Grantee of
late payment of bills and the servicing and collecting of such accounts.
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7. Office Policy. The Grantee shall install, maintain and operate, throughout the
term of this Franchise, a single staffed payment center with regular business hours in the
Commission Franchise Area at a location agreed upon by the Commission and the Grantee.
Additional payment centers may be installed at other locations. The purpose of the payment
center(s) shall be to receive Subscriber payments. All subscriber remittances at a payment center
shall be posted to Subscribers’ accounts within forty-eight (48) hours of remittance. Subscribers
shall not be charged a late fee or otherwise penalized for any failure by the Grantee to properly
credit a Subscriber for a payment timely made. The Grantee shall, at the request of and at no
delivery or retrieval charge to a Subscriber, deliver or retrieve electronic equipment (e.g., Set
Top Boxes and remote controls). After consultation with the Commission, the Grantee shall
provide Subscribers with at least sixty (60) days’ prior notice of any change in the location of the
customer service center serving the North Suburban System, which notice shall apprise
Subscribers of the customer service center’s new address, and the date the changeover will take
place.
SECTION 6. ACCESS CHANNEL(S) PROVISIONS
1. Public, Educational and Government Access.
a. City or its designee is hereby designated to operate, administer, promote, and
manage access (public, education, and government programming) (hereinafter
"PEG access") programming on the Cable System.
b. Within one hundred twenty (120) days from the Effective Date, the Grantee shall
provide sixteen (16) channels (the “Access Channels”) to be used for PEG access
programming on the basic service tier. The City and Commission have the sole
discretion to designate the use of each Access Channel. Grantee shall provide a
technically reliable path for upstream and downstream transmission of the Access
Channels, which will in no way degrade the technical quality of the Access
Channels, from an agreed upon demarcation point at the Commission’s Master
Control Center at the Commission’s office, and from any other designated Access
providers’ locations, to Grantee’s headend, on which all Access Channels shall be
transported for distribution on Grantee’s subscriber network. The Access
Channels shall be delivered without degradation to subscribers in the technical
format (e.g. HD or SD) as delivered by the Commission and any designated
Access provider to Grantee at each demarcation point at the Commission Office
and at the designated Access providers’ locations.
(1) All of the Access Channels will be made available through a multi-
channel display (i.e. a picture in picture feed) on a single TV screen called
a “mosaic” (the “North Suburban Mosaic”), where a cable subscriber can
access via an interactive video menu one of any of the sixteen Access
Channels. The North Suburban Mosaic will be located on Channel 15.
The sixteen Access Channels will be located at Channels 8010-8025. The
North Suburban Mosaic will contain only Access Channels authorized by
the Commission.
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(2) Grantee will make available to the Commission the ability to place
detailed scheduled Access Channel programming information on the
interactive channel guide by putting the Commission in contact with the
electronic programing guide vendor (“EPG provider”) that provides the
guide service (currently Gracenote). Grantee will be responsible for
providing the designations and instructions necessary to ensure the Access
Channels will appear on the programming guide throughout the City and
any necessary headend costs associated therewith. The Commission shall
be responsible for providing programming information to the EPG
provider.
(3) For purposes of this Franchise, the term channel shall be as commonly
understood and is not any specific bandwidth amount. The signal quality
of the Access Channels shall be the same as the local broadcast channels,
provided such signal quality is delivered to Grantee at the Access
Channels’ respective demarcation points.
(4) Grantee will provide, at no cost to the Commission, air time on non-
Access channels during periods in which ample unsold/unused air time on
such channels exists for City public service announcements (PSAs). The
Commission will provide a 30-second PSA prior to the start of each month
on a mutually agreed-upon schedule.
(5) In the event Grantee makes any change in the Cable System and related
equipment and facilities or in its signal delivery technology, which
requires the City or Commission to obtain new equipment in order to be
compatible with such change for purposes of transport and delivery of the
Access Channels to the Grantee’s headend, Grantee shall, at its own
expense and free of charge to the City, the Commission, or its designated
entities, purchase such equipment as may be necessary to facilitate the
cablecasting of the Access Channels in accordance with the requirements
of the Franchise.
(6) Neither the Grantee nor the officers, directors, or employees of the
Grantee is liable for any penalties or damages arising from programming
content not originating from or produced by the Grantee and shown on any
public access channel, education access channel, government access
channel, leased access channel, or regional channel.
(7) Within one hundred twenty (120) days of a written request from the
Commission, Grantee shall make available as part of Basic Service to all
Subscribers a PEG Access Video-on Demand (PEG-VOD) Service and
maintain a PEG-VOD system. The PEG-VOD system shall be connected
by the Grantee such that:
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(i) Twenty-five (25) hours of programming per member city of the
Commission, or such greater amount as may be mutually agreed to
by the parties, as designated and supplied by the City,
Commission, or its Designated Access Provider to the Grantee may
be electronically transmitted and/or transferred and stored on the
PEG-VOD system; and
(ii) A database of that programming may be efficiently searched and a
program requested and viewed over the PEG-VOD system by any
Subscriber in the City; and
(iii) Programming submitted for placement on the PEG-VOD system,
shall be placed on and available for viewing from the PEG-VOD
system within forty-eight (48) hours of receipt of said
programming;
(iv) The hardware and software described in Subsection (8) below,
shall be in all respects of the same or better technical quality as the
hardware and software utilized by Grantee in the provision of any
other video on demand services offered over the Cable System,
and shall be upgraded at Grantee’s cost, when new hardware or
software is utilized on Grantee’s Cable System for other video on
demand services. Grantee shall provide reasonable technical
assistance to allow for proper use and operation when encoding
hardware or software is installed and/or upgraded at City’s
facilities.
(8) To ensure compatibility and interoperability, the Grantee shall supply and
maintain all necessary hardware and software to encode, transmit and/or
transfer Government Access programming from the City to the PEG-VOD
system. The City shall be responsible for all monitoring of any equipment
provided under this Section, and notifying Grantee of any problems.
Grantee shall provide all technical support and maintenance for the
equipment provided to the City by Grantee under this Section. After
notification of any equipment problems, Grantee shall diagnose and
resolve the problem within forty eight (48) hours. Major repairs which
cannot be repaired within the forty eight (48) hour timeframe shall be
completed within seven (7) days of notice, unless, due to Force Majeure
conditions, a longer time is required. “Major repairs” are those that
require equipment to be specially obtained in order to facilitate the repairs.
The quality of signal and the quality of service obtained by a Subscriber
utilizing the PEG-VOD service shall meet or exceed the quality standards
established for all other programming provided by the Grantee and as
established elsewhere in this Franchise Agreement.
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c. All residential Subscribers who receive all or any part of the total services offered
on the System shall be eligible to receive the Access Channels at no additional
charge. City may rename, reprogram, or otherwise change the use of these
channels in its sole discretion, provided such use is non-commercial, lawful, and
retains the general purpose of the provision of community programming. Nothing
herein shall diminish the City's rights to secure additional channels pursuant to
Minn. Stat. § 238.084, which is expressly incorporated herein by reference. City
shall provide ninety (90) days prior written notice to Grantee of City's intent to
activate access channels.
d. Grantee may not move or otherwise change the channel number or location of any
public or government access or community program channel, including the North
Suburban Mosaic channel, without the written approval of the City or its
designee. Upon six (6) months’ notice to City, any other access channel may be
moved by Grantee, but in no event more than once every two (2) years unless
otherwise allowed by City, provided Grantee pays all reasonable costs or
expenses arising out of the channel move including, but not limited to, equipment
necessary to effect the change at the programmer’s production or receiving
facility (school frequency routing equipment, etc.), signage, letterhead, business
cards, and reasonable marketing or other constituency notification costs. This
paragraph shall not apply to Regional Channel 6.
2. Charges for Use. Channel time and playback of programming on the PEG access
and community program channel(s) must be provided without charge to City and the public.
3. Access Rules. City, or its designee, shall implement rules for use of any access
channel(s).
4. Access Support. Grantee shall pay a PEG Fee of $4.15/subscriber/month from the
effective date until the franchise renews. Starting with the 2016 calendar year, the City may
elect to increase this fee based on the Consumer Price Index. Any such election must be made
in writing to the Franchisee no later than September 1st prior to the year in which the increase
shall apply. In no event shall the PEG Fee be in an amount different from the incumbent cable
provider. In the event the incumbent recovers from subscribers a higher, or lower, PEG fee,
Grantee will increase, or decrease, its PEG fee upon ninety (90) days written notice from the
City. The PEG fee may be used for operational or capital support of PEG programming.
5. Regional Channel 6. Grantee shall designate standard VHF Channel 6 for
uniform regional channel usage.
6. State and Federal Law compliance. Satisfaction of the requirements of this
Section 6 satisfies any and all of Grantee’s state and federal law requirements of Grantee with
respect to PEG access.
7. Future PEG Funding Obligations. Grantee agrees that financial support for PEG
arising from or relating to the obligations set forth in this Section shall in no way modify or
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otherwise affect Grantee's obligations to pay Franchise Fees to City. Grantee agrees that
although the sum of Franchise Fees plus the payments set forth in this Section may total more
than five percent (5%) of Grantee's Gross Revenues in any 12-month period, the additional
commitments shall not be offset or otherwise credited in any way against any Franchise Fee
payments under this Franchise Agreement.
8. Additional Payments. If the incumbent franchised cable operator agrees to
provide any support of the Access Channels in excess of the amount identified above or to any
payment in support of any other PEG-related commitment after the Effective Date of this
Franchise, the Commission, in its reasonable discretion, after meeting with the Grantee, will
determine whether Grantee’s PEG Fee should be changed. If Grantee is required to pay any
additional PEG Fee, such amount must be based upon a per subscriber/per month fee.
SECTION 7. SERVICES TO CITY
1. Twin Cities Metro PEG Interconnect Network. Grantee shall provide a discrete,
non-public, video interconnect network, from an agreed upon demarcation point at the
Commission's Master Control Center at the Commission's office, to Grantee's headend. The
video interconnect network shall not exceed 50 Mbps of allocated bandwidth, allowing PEG
operators that have agreed with Grantee to share (send and receive) live and recorded
programming for playback on their respective systems. Where available the Grantee shall
provide the video interconnect network and the network equipment necessary for the high-
priority transport of live multicast HD/SD video streams as well as lower-priority file-sharing.
Grantee shall provide 50 Mbps bandwidth for each participating PEG entity to send its original
programming, receive at least two additional multicast HD/SD streams from any other
participating PEG entity, and allow the transfer of files. Each participating PEG entity is
responsible for encoding its own SD/HD content in suitable bit rates to be transported by the
video interconnect network without exceeding the 50 Mbps of allocated bandwidth.
2. Cable Service to Public Buildings. Grantee shall, at no cost to the City or
Commission, provide Basic Service and Expanded Basic Service (currently Prism Essentials) or
equivalent package of Cable Service and necessary reception equipment to up to seven (7)
outlets at the Commission Office and at each Member City City Hall and to each Independent
School District at the current locations located in the Commission area that originates PEG
programming. Grantee shall, at no cost to the City, provide Basic Service and Expanded Basic
Service (currently Prism Essentials) or equivalent package of Cable Service and necessary
reception equipment to up to three (3) outlets at all other government buildings, schools and
public libraries located in the City where Grantee provides Cable Service, so long as these
government addresses are designated as a Household and no other cable communications
provider is providing complementary service at such location. For purposes of this subsection,
“school” means all State-accredited K-12 public and private schools. Outlets of Basic and
Expanded Basic Service provided in accordance with this subsection may be used to distribute
Cable Services throughout such buildings; provided such distribution can be accomplished
without causing Cable System disruption and general technical standards are maintained. Such
outlets may only be used for lawful purposes. If any location is not designated as a Household, it
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will be provided the functionality to monitor PEG signals through a mutually agreeable alternate
technology at the expense of the Grantee.
SECTION 8. OPERATION AND ADMINISTRATION PROVISIONS
1. Administration of Franchise. The City Manager or other designee shall have
continuing regulatory jurisdiction and supervision over the System and the Grantee's operation
under the Franchise. The City, or its designee, may issue such reasonable rules and regulations
concerning the construction, operation and maintenance of the System as are consistent with the
provisions of the Franchise and law.
2. Delegated Authority. The City may appoint a citizen advisory body or a Joint
Powers Commission, or may delegate to any other body or Person authority to administer the
Franchise and to monitor the performance of the Grantee pursuant to the Franchise. Grantee
shall cooperate with any such delegatee of City.
3. Franchise Fee.
a. During the term of the Franchise, Grantee shall pay quarterly to City or its
delegatee a Franchise Fee in an amount equal to five percent (5%) of its quarterly
Gross Revenues, or such other amounts as are subsequently permitted by federal
statute.
b. Any payments due under this provision shall be payable quarterly. The payment
shall be made within thirty (30) days of the end of each of Grantee's fiscal
quarters together with a report showing the basis for the computation.
c. All amounts paid shall be subject to audit and recomputation by City and/or the
Commission and acceptance of any payment shall not be construed as an accord
that the amount paid is in fact the correct amount. If an audit or review discloses
an overpayment or underpayment of franchise fees, the City and/or the
Commission shall notify Grantee of such overpayment or underpayment. The
City’s/Commission’s audit or review expenses shall be borne by the
City/Commission unless the audit or review determines that the payment to the
City should be increased by more than five percent (5%) in the audited/reviewed
period, in which case the costs of the audit/review shall be borne by Grantee, up
to a cap of $25,000, as a cost incidental to the enforcement of the Franchise. Any
additional amounts due to the City as a result of the audit or review shall be paid
to the City within thirty (30) days following written notice to Grantee by the
City/Commission of the underpayment, which notice shall include a copy of the
audit/review report. If the recomputation results in additional revenue to be paid
to the City, such amount shall be subject to a ten percent (10%) annual interest
charge.
d. The City/Commission shall have the right to inspect and to require Grantee to
provide any and all data, documents and records maintained by Grantee (or
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maintained by an Affiliate or a third-party contractor/vendor on behalf of
Grantee) reasonably related to the calculation and payment of franchise fees. The
Grantee shall maintain such records, documents and data for a minimum of four
(4) years.
e. Grantee shall have no less than twenty (20) business days to respond fully and
completely to any written request for data, documents and records issued by the
City/Commission, unless an extension of time is granted by the City/Commission
in writing. Grantee may request an extension of the twenty (20) business day
deadline applicable to a written request for data, information and documents no
later than ten (10) business days after the date of such request. Every request for
an extension of time shall describe, in detail, the reasons the extension is
necessary. The City/Commission may, in its sole discretion, grant or deny an
extension request, and shall act reasonably in making such a determination based
on the scope and complexity of the information request at issue and the facts cited
by Grantee in its written extension request.
f. In the event any franchise fee payment or recomputation amount is not made on
or before the required date, Grantee shall pay, during the period such unpaid
amount is owed, the additional compensation and interest charges computed from
such due date, at an annual rate of ten percent (10%).
g. Nothing in this Franchise shall be construed to limit any authority of the City to
impose any tax, fee or assessment of general applicability.
h. The franchise fee payments required by this Franchise shall be in addition to any
and all taxes or fees of general applicability. Grantee shall not have or make any
claim for any deduction or other credit of all or any part of the amount of said
franchise fee payments from or against any of said taxes or fees of general
applicability, except as expressly permitted by law. Grantee shall not apply nor
seek to apply all or any part of the amount of said franchise fee payments as a
deduction or other credit from or against any of said taxes or fees of general
applicability, except as expressly permitted by law. Nor shall Grantee apply or
seek to apply all or any part of the amount of any of said taxes or fees of general
applicability as a deduction or other credit from or against any of its franchise fee
obligations, except as expressly permitted by law.
i. The Franchise Fee shall be in addition to any and all taxes or other levies or
assessments which are now or hereafter required to be paid by businesses in
general by any law of the City, the State or the United States including, without
limitation, sales, use and other taxes, business license fees or other payments.
Payment of the Franchise Fee under this Franchise shall not exempt Grantee from
the payment of any other license fee, permit fee, tax or charge on the business,
occupation, property or income of Grantee that may be lawfully imposed by the
City. Any other license fees, taxes or charges shall be of general applicability in
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nature and shall not be levied against Grantee solely because of its status as a
cable operator or solely because of its status as such.
4. Access to Records. The City shall have the right to inspect, upon reasonable
notice and during normal business hours, or require Grantee to provide within a reasonable time
copies of any records maintained by Grantee which relate to System operations including
specifically Grantee’s accounting and financial records.
5. Reports and Maps.
a. Grantee shall file with the City, at the time or payment of the Franchise Fee, a
report of all Gross Revenues in form and substance as required by City.
b. Grantee shall prepare and make available to City, at the times and in the form
prescribed, such other reasonable reports with respect to Grantee’s operations
pursuant to this Franchise as City may require.
c. If required by City, Grantee shall make available to the City Manager the maps,
plats, and permanent records of the location and character of all facilities
constructed, including underground facilities, and Grantee shall make available
with City updates of such maps, plats and permanent records annually if changes
have been made in the System.
6. Periodic Evaluation.
a. The City may require evaluation sessions at any time during the term of this
Franchise, upon fifteen (15) days written notice to Grantee.
b. Topics which may be discussed at any evaluation session may include, but are not
limited to, application of new technologies, System performance, programming
offered, access channels, facilities and support, municipal uses of cable,
subscriber rates, customer complaints, amendments to this Franchise, judicial
rulings, FCC rulings, line extension policies and any other topics City deems
relevant.
c. As a result of a periodic review or evaluation session, upon notification from City,
Grantee shall meet with city and undertake good faith efforts to reach agreement
on changes and modifications to the terms and conditions of the Franchise which
are both economically and technically feasible.
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SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS
1. Performance Bond.
a. Within 30 days of the Effective Date of this Franchise, the Grantee shall deliver to
the Commission a bond, that is effective as of the Effective Date and at all times
thereafter, until the Grantee has liquidated all of its obligations with City, the
Grantee shall furnish a bond to Commission in the amount of $500,000.00 in a
form and with such sureties as reasonably acceptable to City. This bond will be
conditioned upon the faithful performance by the Grantee of its Franchise
obligations and upon the further condition that in the event the Grantee shall fail
to comply with any law, ordinance or regulation governing the Franchise, there
shall be recoverable jointly and severally from the principal and surety of the
bond any damages or loss suffered by City as a result, including the full amount
of any compensation, indemnification or cost of removal or abandonment of any
property of the Grantee, plus a reasonable allowance for attorneys' fees and costs,
up to the full amount of the bond, and further guaranteeing payment by the
Grantee of claims, liens and taxes due City which arise by reason of the
construction, operation, or maintenance of the System. The rights reserved by
City with respect to the bond are in addition to all other rights City may have
under the Franchise or any other law. City may, from year to year, in its sole
discretion, reduce the amount of the bond.
b. The time for Grantee to correct any violation or liability, shall be extended by
City if the necessary action to correct such violation or liability is, in the sole
determination of City, of such a nature or character as to require more than thirty
(30) days within which to perform, provided Grantee provides written notice that
it requires more than thirty (30) days to correct such violations or liability,
commences the corrective action within the thirty (30) days period and thereafter
uses reasonable diligence to correct the violation or liability.
c. In the event this Franchise is revoked by reason of default of Grantee, City shall
be entitled to collect from the performance bond that amount which is attributable
to any damages sustained by City as a result of said default or revocation.
d. Grantee shall be entitled to the return of the performance bond, or portion thereof,
as remains sixty (60) days after the expiration of the term of the Franchise or
revocation for default thereof, provided City has not notified Grantee of any
actual or potential damages incurred as a result of Grantee’s operations pursuant
to the Franchise or as a result of said default.
e. The rights reserved to City with respect to the performance bond are in addition to
all other rights of City whether reserved by this Franchise or authorized by law,
and no action, proceeding or exercise of a right with respect to the performance
bond shall affect any other right City may have.
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2. Letter of Credit.
a. Within thirty (30) days of the Effective Date of this Franchise, Grantee shall
deliver to Commission an irrevocable and unconditional Letter of Credit, that is
effective as of the Effective Date, in form and substance acceptable to City, from
a National or State bank approved by the Commission , in the amount of
$25,000.00.
b. The Letter of Credit shall provide that funds will be paid to City, upon written
demand of City, and in an amount solely determined by City in payment for
penalties charged pursuant to this Section, in payment for any monies owed by
Grantee to City or any person pursuant to its obligations under this Franchise, or
in payment for any damage incurred by City or any person as a result of any acts
or omissions by Grantee pursuant to this Franchise.
c. In addition to recovery of any monies owed by Grantee to City or any person or
damages to City or any person as a result of any acts or omissions by Grantee
pursuant to the Franchise, City in its sole discretion may charge to and collect
from the Letter of Credit the following penalties:
i. For failure to timely complete System upgrades as provided in this
Franchise unless City approves the delay, the penalty shall be $500.00 per
day for each day, or part thereof, such failure occurs or continues.
ii. For failure to provide data, documents, reports or information or to
cooperate with City during an application process or system review or as
otherwise provided herein, the penalty shall be $250.00 per day for each
day, or part thereof, such failure occurs or continues.
iii. Fifteen (15) days following notice from City of a failure of Grantee to
comply with construction, operation or maintenance standards, the penalty
shall be $500.00 per day for each day, or part thereof, such failure occurs
or continues.
iv. For failure to provide the services Grantee has proposed, including, but
not limited to, the implementation and the utilization of the access
channels and the maintenance and/or replacement of the equipment and
other facilities, the penalty shall be $500.00 per day for each day, or part
thereof, such failure occurs or continues.
v. For Grantee’s breach of any written contract or agreement with or to the
City or its designee, the penalty shall be $500.00 per day for each day, or
part thereof, such breach occurs or continues.
vi. For failure to comply with the reasonable build-out provisions and for
economic redlining in violation of Section 2, Paragraph 7 above and 47
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U.S.C. § 541(a)(3): Five Hundred dollars ($500) per day for each day or
part thereof that such violation continues.
vii. For failure to comply with any of the provisions of this Franchise, or other
City ordinance for which a penalty is not otherwise specifically provided
pursuant to this paragraph c, the penalty shall be $250.00 per day for each
day, or part thereof, such failure occurs or continues.
d. Each violation of any provision of this Franchise shall be considered a separate
violation for which a separate penalty can be imposed.
e. Whenever City finds that Grantee has violated one or more terms, conditions or
provisions of this Franchise, or for any other violation contemplated in Section 9,
Paragraph 2(c) above, a written notice shall be given to Grantee informing it of
such violation. At any time after thirty (30) days (or such longer reasonable time
which, in the sole determination of City, is necessary to cure the alleged violation)
following local receipt of notice, provided Grantee remains in violation of one or
more terms, conditions or provisions of this Franchise, in the sole opinion of City,
City may draw from the Letter of Credit all penalties and other monies due City
from the date of the local receipt of notice.
f. Whenever the Letter of Credit is drawn upon, Grantee may, within seven (7) days
of such draw, notify City in writing that there is a dispute as to whether a
violation or failure has in fact occurred. Such written notice by Grantee to City
shall specify with particularity the matters disputed by Grantee. All penalties
shall continue to accrue and City may continue to draw from the Letter of Credit
during any appeal pursuant to this subparagraph f.
i. City shall hear Grantee's dispute within sixty (60) days and render a final
decision within sixty (60) days thereafter.
ii. Upon the determination of City that no violation has taken place, City
shall refund to Grantee, without interest, all monies drawn from the Letter
of Credit by reason of the alleged violation.
g. If said Letter of Credit or any subsequent Letter of Credit delivered pursuant
thereto expires prior to thirty (30) months after the expiration of the term of this
Franchise, it shall be renewed or replaced during the term of this Franchise to
provide that it will not expire earlier than thirty (30) months after the expiration of
this Franchise. The renewed or replaced Letter of Credit shall be of the same
form and with a bank authorized herein and for the full amount stated in
Paragraph A of this Section.
h. If City draws upon the Letter of Credit or any subsequent Letter of Credit
delivered pursuant hereto, in whole or in part, Grantee shall replace or replenish
to its full amount the same within ten (10) days and shall deliver to City a like
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replacement Letter of Credit or certification of replenishment for the full amount
stated in Section 9, Paragraph 2(a) as a substitution of the previous Letter of
Credit. This shall be a continuing obligation for any draws upon the Letter of
Credit.
i. If any Letter of Credit is not so replaced or replenished, City may draw on said
Letter of Credit for the whole amount thereof and use the proceeds as City
determines in its sole discretion. The failure to replace or replenish any Letter of
Credit may also, at the option of the City, be deemed a default by Grantee under
this Franchise. The drawing on the Letter of Credit by City, and use of the money
so obtained for payment or performance of the obligations, duties and
responsibilities of Grantee which are in default, shall not be a waiver or release of
such default.
j. The collection by City of any damages, monies or penalties from the Letter of
Credit shall not affect any other right or remedy available to City, nor shall any
act, or failure to act, by City pursuant to the Letter of Credit, be deemed a waiver
of any right of City pursuant to this Franchise or otherwise.
3. Indemnification of City.
a. City, its officers, boards, committees, commissions, elected officials, employees
and agents shall not be liable for any loss or damage to any real or personal
property of any Person, or for any injury to or death of any Person, arising out of
or in connection with Grantee’s construction, operation, maintenance, repair or
removal of the System or as to any other action of Grantee with respect to this
Franchise.
b. Grantee shall indemnify, defend, and hold harmless City, its officers, boards,
committees, commissions, elected officials, employees and agents, from and
against all liability, damages, and penalties which they may legally be required to
pay as a result of the City’s exercise, administration, or enforcement of the
Franchise.
c. Nothing in this Franchise relieves a Person, except City, from liability arising out
of the failure to exercise reasonable care to avoid injuring the Grantee's facilities
while performing work connected with grading, regarding, or changing the line of
a Right-of-Way or public place or with the construction or reconstruction of a
sewer or water system.
d. Grantee shall contemporaneously with this Franchise execute an Indemnity
Agreement in the form of Exhibit A, which shall indemnify, defend and hold the
City and Commission harmless for any claim for injury, damage, loss, liability,
cost or expense, including court and appeal costs and reasonable attorneys’ fees or
reasonable expenses arising out of the actions of the City and/or Commission in
granting this Franchise. This obligation includes any claims by another
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franchised cable operator against the City and/or Commission that the terms and
conditions of this Franchise are less burdensome than another franchise granted
by the City or that this Franchise does not satisfy the requirements of applicable
state law(s).
4. Insurance.
a. As a part of the indemnification provided in Section 8.3, but without limiting the
foregoing, Grantee shall file with City at the time of its acceptance of this
Franchise, and at all times thereafter maintain in full force and effect at its sole
expense, a comprehensive general liability insurance policy, including
broadcaster’s/cablecaster’s liability and contractual liability coverage, in
protection of the Grantee, and the City, its officers, elected officials, boards,
commissions, agents and employees for any and all damages and penalties which
may arise as a result of this Franchise. The policy or policies shall name the City
as an additional insured, and in their capacity as such, City officers, elected
officials, boards, commissions, agents and employees.
b. The policies of insurance shall be in the sum of not less than $1,000,000.00 for
personal injury or death of any one Person, and $2,000,000.00 for personal injury
or death of two or more Persons in any one occurrence, $500,000.00 for property
damage to any one person and $2,000,000.00 for property damage resulting from
any one act or occurrence.
c. The policy or policies of insurance shall be maintained by Grantee in full force
and effect during the entire term of the Franchise. Each policy of insurance shall
contain a statement on its face that the insurer will not cancel the policy or fail to
renew the policy, whether for nonpayment of premium, or otherwise, and whether
at the request of Grantee or for other reasons, except after sixty (60) days advance
written notice have been provided to City.
SECTION 10. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF
FRANCHISE
1. City's Right to Revoke.
a. In addition to all other rights which City has pursuant to law or equity, City
reserves the right to commence proceedings to revoke, terminate or cancel this
Franchise, and all rights and privileges pertaining thereto, if it is determined by
City that:
i. Grantee has violated material provisions(s) of this Franchise; or
ii. Grantee has attempted to evade any of the provisions of the Franchise; or
iii. Grantee has practiced fraud or deceit upon City.
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City may revoke this Franchise without the hearing required by Section 10,
Paragraph.2 herein if Grantee is adjudged a bankrupt.
2. Procedures for Revocation.
a. City shall provide Grantee with written notice of a cause for revocation and the
intent to revoke and shall allow Grantee thirty (30) days subsequent to receipt of
the notice in which to correct the violation or to provide adequate assurance of
performance in compliance with the Franchise. In the notice required herein, City
shall provide Grantee with the basis of the revocation.
b. Grantee shall be provided the right to a public hearing affording due process
before the City Council prior to the effective date of revocation, which public
hearing shall follow the thirty (30) day notice provided in subparagraph (a) above.
City shall provide Grantee with written notice of its decision together with written
findings of fact supplementing said decision.
c. Only after the public hearing and upon written notice of the determination by City
to revoke the Franchise may Grantee appeal said decision with an appropriate
state or federal court or agency.
d. During the appeal period, the Franchise shall remain in full force and effect unless
the term thereof sooner expires or unless continuation of the Franchise would
endanger the health, safety and welfare of any person or the public.
3. Abandonment of Service. Grantee may not abandon the System or any portion
thereof without having first given three (3) months written notice to City. Grantee may not
abandon the System or any portion thereof without compensating City for damages resulting
from the abandonment, including all costs incident to removal of the System.
4. Removal After Abandonment, Termination or Forfeiture.
a. In the event of termination or forfeiture of the Franchise or abandonment of the
System, City shall have the right to require Grantee to remove all or any portion
of the System from all Rights-of-Way and public property within City.
b. If Grantee has failed to commence removal of System, or such part thereof as was
designated by City, within thirty (30) days after written notice of City's demand
for removal is given, or if Grantee has failed to complete such removal within
twelve (12) months after written notice of City's demand for removal is given,
City shall have the right to apply funds secured by the Letter of Credit and
Performance Bond toward removal and/or declare all right, title, and interest to
the System to be in City with all rights of ownership including, but not limited to,
the right to operate the System or transfer the System to another for operation by
it.
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5. Sale or Transfer of Franchise.
a. No sale or transfer of the Franchise, or sale, transfer, or fundamental corporate
change of or in Grantee, including, but not limited to, a fundamental corporate
change in Grantee’s parent corporation or any entity having a controlling interest
in Grantee, the sale of a controlling interest in the Grantee’s assets, a merger
including the merger of a subsidiary and parent entity, consolidation, or the
creation of a subsidiary or affiliate entity, shall take place until a written request
has been filed with City requesting approval of the sale, transfer, or corporate
change and such approval has been granted or deemed granted, provided,
however, that said approval shall not be required where Grantee grants a security
interest in its Franchise and/or assets to secure an indebtedness. The foregoing
notwithstanding, Grantee must seek approval of any transaction constituting a
transfer under state law.
b. Any sale, transfer, exchange or assignment of stock in Grantee, or Grantee’s
parent corporation or any other entity having a controlling interest in Grantee, so
as to create a new controlling interest therein, shall be subject to the requirements
of this Section 10, Paragraph 5. The term “controlling interest” as used herein is
not limited to majority stock ownership, but includes actual working control in
whatever manner exercised. In any event, as used herein, a new “controlling
interest” shall be deemed to be created upon the acquisition through any
transaction or group of transactions of a legal or beneficial interest of fifteen
percent (15%) or more by one Person. Acquisition by one Person of an interest of
five percent (5%) or more in a single transaction shall require notice to City.
c. The Grantee shall file, in addition to all documents, forms and information
required to be filed by applicable law, the following:
1. All contracts, agreements or other documents that constitute the proposed
transaction and all exhibits, attachments, or other documents referred to
therein which are necessary in order to understand the terms thereof.
2. A list detailing all documents filed with any state or federal agency related
to the transaction including, but not limited to, the MPUC, the FCC, the
FTC, the FEC, the SEC or MnDOT. Upon request, Grantee shall provide
City with a complete copy of any such document; and
3. Any other documents or information related to the transaction as may be
specifically requested by the City.
d. City shall have such time as is permitted by federal law in which to review a
transfer request.
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e. The Grantee shall reimburse City for all the legal, administrative, and consulting
costs and fees associated with the City’s review of any request to transfer.
Nothing herein shall prevent Grantee from negotiating partial or complete
payment of such costs and fees by the transferee. Grantee may not itemize any
such reimbursement on Subscriber bills, but may recover such expenses in its
subscriber rates.
f. In no event shall a sale, transfer, corporate change, or assignment of ownership or
control pursuant to subparagraph (a) or (b) of this Section 10 Paragraph 5 be
approved without the transferee becoming a signatory to this Franchise and
assuming all rights and obligations thereunder, and assuming all other rights and
obligations of the transferor to the City including, but not limited to, any adequate
guarantees or other security instruments provided by the transferor.
g. In the event of any proposed sale, transfer, corporate change, or assignment
pursuant to subparagraph (a) or (b) of this Section 10, Paragraph 5, City shall
have the right to purchase the System for the value of the consideration proposed
in such transaction. City’s right to purchase shall arise upon City’s receipt of
notice of the material terms of an offer or proposal for sale, transfer, corporate
change, or assignment, which Grantee has accepted. Notice of such offer or
proposal must be conveyed to City in writing and separate from any general
announcement of the transaction.
h. City shall be deemed to have waived its right to purchase the System pursuant to
this Section only in the following circumstances:
i. If City does not indicate to Grantee in writing, within sixty (60) days of
receipt of written notice of a proposed sale, transfer, corporate change, or
assignment as contemplated in Section 10, Paragraph 5(g) above, its
intention to exercise its right of purchase; or
ii. It approves the assignment or sale of the Franchise as provided within this
Section.
i. No Franchise may be transferred if City determines Grantee is in noncompliance
of the Franchise unless an acceptable compliance program has been approved by
City. The approval of any transfer of ownership pursuant to this Section shall not
be deemed to waive any rights of City to subsequently enforce noncompliance
issues relating to this Franchise even if such issues predated the approval, whether
known or unknown to City.
SECTION 11. PROTECTION OF INDIVIDUAL RIGHTS
1. Discriminatory Practices Prohibited. Grantee shall not deny service, deny access,
or otherwise discriminate against Subscribers (or group of potential subscribers) or general
citizens on the basis of race, color, religion, national origin, sex, age, status as to public
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assistance, affectional preference, or disability. Grantee shall comply at all times with all other
applicable federal, state, and city laws, and all executive and administrative orders relating to
nondiscrimination.
2. Subscriber Privacy.
a. No signals may be transmitted from a Subscriber terminal for purposes of
monitoring individual viewing patterns or practices without the express written
permission of the Subscriber. Such written permission shall be for a limited
period of time not to exceed one (1) year which may be renewed at the option of
the Subscriber. No penalty shall be invoked for a Subscriber's failure to provide
or renew such authorization. The authorization shall be revocable at any time by
the Subscriber without penalty of any kind whatsoever. Such permission shall be
required for all channel activity planned for the purpose of monitoring individual
viewing patterns or practices.
b. No lists of the names and addresses of Subscribers or any lists that identify the
viewing habits of Subscribers shall be sold or otherwise made available to any
party other than to Grantee or its agents for Grantee’s service business use or to
City for the purpose of Franchise administration, and also to the Subscriber
subject of that information, unless Grantee has received specific written
authorization from the Subscriber to make such data available. Such written
permission shall be for a limited period of time not to exceed one (1) year which
may be renewed at the option of the Subscriber. No penalty shall be invoked for a
Subscriber's failure to provide or renew such authorization. The authorization
shall be revocable at any time by the Subscriber without penalty of any kind
whatsoever.
c. Written permission from the Subscriber shall not be required for the conducting of
System wide or individually addressed electronic sweeps for the purpose of
verifying System integrity or monitoring for the purpose of billing.
Confidentiality of such information shall be subject to the provision set forth in
subparagraph (b) of this Section.
SECTION 12. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS
1. Unauthorized Connections or Modifications Prohibited. It shall be unlawful for
any firm, Person, group, company, corporation, or governmental body or agency, without the
express consent of the Grantee, to make or possess, or assist anybody in making or possessing,
any unauthorized connection, extension, or division, whether physically, acoustically,
inductively, electronically or otherwise, with or to any segment of the System or receive services
of the System without Grantee’s authorization.
2. Removal or Destruction Prohibited. It shall be unlawful for any firm, Person,
group, company, or corporation to willfully interfere, tamper, remove, obstruct, or damage, or
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assist thereof, any part or segment of the System for any purpose whatsoever, except for any
rights City may have pursuant to this Franchise or its police powers.
3. Penalty. Any firm, Person, group, company, or corporation found guilty of
violating this section may be fined not less than Twenty Dollars ($20.00) and the costs of the
action nor more than Five Hundred Dollars ($500.00) and the costs of the action for each and
every subsequent offense. Each continuing day of the violation shall be considered a separate
occurrence.
SECTION 13. MISCELLANEOUS PROVISIONS
1. Franchise Renewal. Any renewal of this Franchise shall be performed in
accordance with applicable federal, state and local laws and regulations. The term of any
renewed Franchise shall be limited to a period not to exceed fifteen (15) years.
2. Work Performed by Others. All applicable obligations of this Franchise shall
apply to any subcontractor or others performing any work or services pursuant to the provisions
of this Franchise, however, in no event shall any such subcontractor or other performing work
obtain any rights to maintain and operate a System or provide Cable Service. Grantee shall
provide notice to City of the name(s) and address(es) of any entity, other than Grantee, which
performs substantial services pursuant to this Franchise.
3. Amendment of Franchise Ordinance. Grantee and City may agree, from time to
time, to amend this Franchise. Such written amendments may be made subsequent to a review
session pursuant to Section 7.5 or at any other time if City and Grantee agree that such an
amendment will be in the public interest or if such an amendment is required due to changes in
federal, state or local laws. Provided, however, nothing herein shall restrict City’s exercise of its
police powers or City’s authority to unilaterally amend Franchise provisions to the extent
permitted by law.
4. Compliance with Federal, State and Local Laws.
a. If any federal or state law or regulation shall require or permit City or Grantee to
perform any service or act or shall prohibit City or Grantee from performing any
service or act which may be in conflict with the terms of this Franchise, then as
soon as possible following knowledge thereof, either party shall notify the other
of the point in conflict believed to exist between such law or regulation. Grantee
and City shall conform to state laws and rules regarding cable communications
not later than one year after they become effective, unless otherwise stated, and to
conform to federal laws and regulations regarding cable as they become effective.
b. If any term, condition or provision of this Franchise or the application thereof to
any Person or circumstance shall, to any extent, be held to be invalid or
unenforceable, the remainder hereof and the application of such term, condition or
provision to Persons or circumstances other than those as to whom it shall be held
invalid or unenforceable shall not be affected thereby, and this Franchise and all
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the terms, provisions and conditions hereof shall, in all other respects, continue to
be effective and complied with provided the loss of the invalid or unenforceable
clause does not substantially alter the agreement between the parties. In the event
such law, rule or regulation is subsequently repealed, rescinded, amended or
otherwise changed so that the provision which had been held invalid or modified
is no longer in conflict with the law, rules and regulations then in effect, said
provision shall thereupon return to full force and effect and shall thereafter be
binding on Grantee and City.
5. Nonenforcement by City. Grantee shall not be relieved of its obligations to
comply with any of the provisions of this Franchise by reason of any failure or delay of City to
enforce prompt compliance. City may only waive its rights hereunder by expressly so stating in
writing. Any such written waiver by City of a breach or violation of any provision of this
Franchise shall not operate as or be construed to be a waiver of any subsequent breach or
violation.
6. Rights Cumulative. All rights and remedies given to City by this Franchise or
retained by City herein shall be in addition to and cumulative with any and all other rights and
remedies, existing or implied, now or hereafter available to City, at law or in equity, and such
rights and remedies shall not be exclusive, but each and every right and remedy specifically
given by this Franchise or otherwise existing or given may be exercised from time to time and as
often and in such order as may be deemed expedient by City and the exercise of one or more
rights or remedies shall not be deemed a waiver of the right to exercise at the same time or
thereafter any other right or remedy.
7. Grantee Acknowledgment of Validity of Franchise. Grantee acknowledges that it
has had an opportunity to review the terms and conditions of this Franchise and that under
current law Grantee believes that said terms and conditions are not unreasonable or arbitrary, and
that Grantee believes City has the power to make the terms and conditions contained in this
Franchise.
8. Force Majeure. The Grantee shall not be deemed in default of provisions of this
Franchise or the City Code where performance was rendered impossible by war or riots, labor
strikes or civil disturbances, floods or other causes beyond the Grantee’s control, and the
Franchise shall not be revoked or the Grantee penalized for such noncompliance, provided that
the Grantee, when possible, takes immediate and diligent steps to bring itself back into
compliance and to comply as soon as possible, under the circumstances, with the Franchise
without unduly endangering the health, safety and integrity of the Grantee’s employees or
property, or the health, safety and integrity of the public, the Rights-of-Way, public property or
private property.
SECTION 14. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS
1. Publication: Effective Date. This Franchise shall be published in accordance with
applicable local and Minnesota law. The Effective Date of this Franchise shall be the date of
acceptance by Grantee in accordance with the provisions of Section 14, Paragraph 2.
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2. Acceptance.
a. Grantee shall accept this Franchise within sixty (60) of its enactment by the City
Council, unless the time for acceptance is extended by City. Such acceptance by
the Grantee shall be deemed the grant of this Franchise for all purposes provided,
however, this Franchise shall not be effective until all City ordinance adoption
procedures are complied with and all applicable timelines have run for the
adoption of a City ordinance. In the event acceptance does not take place, or
should all ordinance adoption procedures and timelines not be completed, this
Franchise and any and all rights granted hereunder to Grantee shall be null and
void.
b. Upon acceptance of this Franchise, Grantee and City shall be bound by all the
terms and conditions contained herein.
c. Grantee shall accept this Franchise in the following manner:
i. This Franchise will be properly executed and acknowledged by Grantee
and delivered to City.
ii. With its acceptance, Grantee shall also deliver any grant payments,
performance bond and insurance certificates required herein that have not
previously been delivered.
Passed and adopted this 10th day of November, 2015.
ATTEST: CITY OF ST. ANTHONY
By: _______________________________ By: _____________________________
Nicole Miller, City Clerk Jerome O. Faust, Mayor
ACCEPTED: This Franchise is accepted and we agree to be bound by its terms and conditions.
Dated: November 10, 2015 By: _____________________________
Mark Casey, City Manager
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EXHIBIT A - INDEMNITY AGREEMENT
INDEMNITY AGREEMENT made this 10th day of November, 2015, by and between
Qwest Broadband Services, Inc., a Delaware Corporation, party of the first part, hereinafter called
“CenturyLink,” and the City of St. Anthony, a Minnesota Municipal Corporation, party of the
second part, hereinafter called “City” and the North Suburban Communications Commission, a
Minnesota Municipal Joint Powers entity, hereinafter called “Commission.”
WITNESSETH:
WHEREAS, the City of St. Anthony has awarded to Qwest Broadband Services, Inc. a
franchise for the operation of a cable communications system in the City; and
WHEREAS, the City has required, as a condition of its award of a cable communications
franchise, that it and the Commission be indemnified with respect to all claims and actions arising
from the award of said franchise.
NOW THEREFORE, in consideration of the foregoing promises and the mutual
promises contained in this agreement and in consideration of entering into a cable television
franchise agreement and other good and valuable consideration, receipt of which is hereby
acknowledged, CenturyLink hereby agrees, at its sole cost and expense, to fully indemnify,
defend and hold harmless the City and the Commission, its officers, boards, commissions,
employees and agents against any and all claims, suits, actions, liabilities and judgments for
damages, cost or expense (including, but not limited to, court and appeal costs and reasonable
attorneys' fees and disbursements assumed or incurred by the City in connection therewith)
arising out of the actions of the City and Commission in granting a franchise to CenturyLink.
This includes any claims by another franchised cable operator against the City that the terms and
conditions of the CenturyLink franchise are less burdensome than another franchise granted by
the City or that the CenturyLink Franchise does not satisfy the requirements of applicable federal,
state, or local law(s). The indemnification provided for herein shall not extend or apply to any
acts of the City or Commission constituting a violation or breach by the City or Commission of
the contractual provisions of the franchise ordinance, unless such acts are the result of a change in
applicable law, the order of a court or administrative agency, or are caused by the acts of
CenturyLink.
The City or Commission shall give CenturyLink reasonable notice of the making of any
claim or the commencement of any action, suit or other proceeding covered by this agreement.
The City and Commission shall cooperate with CenturyLink in the defense of any such action,
suit or other proceeding at the request of CenturyLink. The City and Commission may participate
in the defense of a claim, but if CenturyLink provides a defense at CenturyLink’s expense then
CenturyLink shall not be liable for any attorneys' fees, expenses or other costs that City or
Commission may incur if it chooses to participate in the defense of a claim, unless and until
separate representation is required. If separate representation to fully protect the interests of both
parties is or becomes necessary, such as a conflict of interest, in accordance with the Minnesota
Rules of Professional Conduct, between the City or the Commission and the counsel selected by
CenturyLink to represent the City and/or the Commission, Century Link shall pay, from the date
such separate representation is required forward, all reasonable expenses incurred by the City or
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the Commission in defending itself with regard to any action, suit or proceeding indemnified by
CenturyLink. Provided, however, that in the event that such separate representation is or becomes
necessary, and City or the Commission desires to hire a counselor any other outside experts or
consultants and desires CenturyLink to pay those expenses, then City and/or the Commission
shall be required to obtain CenturyLink's consent to the engagement of such counsel, experts or
consultants, such consent not to be unreasonably withheld. Notwithstanding the foregoing, the
parties agree that the City or Commission may utilize at any time, at its own cost and expense, its
own attorney or outside counsel with respect to any claim brought by another franchised cable
operator as described in this agreement.
The provisions of this agreement shall not be construed to constitute an amendment of the
cable communications franchise ordinance or any portion thereof but shall be in addition to and
independent of any other similar provisions contained in the cable communications franchise
ordinance or any other agreement of the parties hereto. The provisions of this agreement shall not
be dependent or conditioned upon the validity of the cable communications franchise ordinance
or the validity of any of the procedures or agreements involved in the award or acceptance of the
franchise, but shall be and remain a binding obligation of the parties hereto even if the cable
communications franchise ordinance or the grant of the franchise is declared null and void in a
legal or administrative proceeding.
It is the purpose of this agreement to provide maximum indemnification to the City and
the Commission under the terms set out herein and, in the event of a dispute as to the meaning of
this Indemnity Agreement, it shall be construed, to the greatest extent permitted by law, to
provide for the indemnification of the City and the Commission by CenturyLink. This agreement
shall be a binding obligation of and shall inure to the benefit of, the parties hereto and their
successor's and assigns, if any.
QWEST BROADBAND SERVICES, INC.
Dated: __________________, 2015 By: _______________________________
Its: _______________________________
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STATE OF LOUISIANA
PARISH OF OUACHITA
The foregoing instrument was acknowledged before me this _____ day of 2015, by
______________________, the ___________________________ of Qwest Broadband Services,
Inc., a Delaware Corporation, on behalf of the corporation.
___________________________________
NOTARY PUBLIC
Print Name: ________________________
Bar Roll #/Notary ID #: ________________
My Commission Expires: ______________
CITY OF ST. ANTHONY
By:____________________________________
Mark Casey, City Manager
NORTH SUBURBAN COMMUNICATIONS
COMMISSION
By: __________________________________
Its: __________________________________
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CITY OF ST. ANTHONY, MINNESOTA
In Re: CenturyLink Cable Franchise FINDINGS OF FACT
Application
The City is one of nine member cities of the North Suburban Communications
Commission (the “NSCC”). Following the submission of an application for a cable television
franchise for each member city of the NSCC, the above-entitled matter initially came before the
NSCC for a public hearing on Thursday, March 5, 2015, at the NSCC’s Office located at 2670
Arthur Street, Roseville, MN 55113. Said public hearing was held open through Friday, March
13, 2015, for the purpose of allowing additional written public comments. Following the public
hearing, the NSCC’s Executive Director prepared a detailed report entitled “Staff Report on
CenturyLink Cable Franchise Application” (the “Staff Report”). The NSCC received and filed
the Staff Report and directed NSCC staff to a negotiate cable television franchise with
CenturyLink.
The City, in furtherance of its obligations as a steward on behalf of consumers in the
City, desires to promote competition in the delivery of cable services and to encourage the
deployment of state-of-the-art broadband networks in the hope that true and effective
competition between cable service providers will increase the availability and quality of cable
services, spur the development of new technologies, improve customer service, minimize rate
increases and generally benefit consumers of the City.
The City also recognizes that any facilities based, second cable entrant is in a different
position than the incumbent cable provider because the second entrant faces a significant, up
front capital investment prior to having the opportunity to compete for its first customer. It is
beneficial to attract and retain second entrants because of the investment made in the community
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and the creation of new jobs, as well as the benefits to consumers by having a cable service
competitor in the City. Adoption of this Franchise is, in the judgment of the City Council, in the
best interests of the City and its residents.
Having held a public hearing on the cable franchise application (via the NSCC) and
having reviewed the negotiated cable franchise with CenturyLink, the City now makes the
following findings:
FINDINGS OF FACT
1. The City has the authority to grant cable television franchises to cable service
providers, pursuant to applicable law. See Minn. Stat. § 238.08, Subd. 1(a); and
Cable Office Report, § 4.
2. In January, 2015, the NSCC published a Notice of Intent to Franchise in a
newspaper of general circulation of the City. See Staff Report, § 1.
3. CenturyLink submitted a cable franchise application (the “Application”) on
February 20, 2015. See Staff Report, § 1.
4. The NSCC held a public hearing on the Application on March 5, 2015, and left
the public hearing open until March 13, 2015, for the purpose of receiving
additional written comments from the public. See Staff Report, Executive
Summary and § 1.
5. Following the public hearing, the NSCC’s Executive Director prepared a “Staff
Report on CenturyLink Cable Franchise Application” (the “Staff Report) dated
April 9, 2015. The Staff Report is incorporated herein by Reference.
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6. The Staff Report was received and filed by the NSCC on or about April 10, 2015,
and the NSCC directed NSCC staff to negotiate a cable television franchise with
CenturyLink.
7. NSCC staff negotiated a cable television franchise with CenturyLink and
presented it to the NSCC on October 7, 2015.
8. The NSCC adopted a Findings of Fact and Recommendation on October 7, 2015,
which recommended approval of the negotiated cable television franchise with
CenturyLink by each member city.
9. The City held a public hearing on the CenturyLink Cable Television Franchise
Ordinance on November 10, 2015.
10. The impact of competition and the challenges to a new cable operator, like
CenturyLink, are identified in the Staff Report. See Staff Report, § 2.
11. The applicable federal, state and local legal cable franchising requirements,
including the application requirements, are identified in the Staff Report. See
Staff Report, §§ 5 - 8.
12. The Staff Report identified the issues raised by the public, including the
incumbent franchised cable operator, Comcast. See Staff Report, § 9.
13. The NSCC has substantially complied with the state and local cable franchise
application requirements identified in the Staff Report.
14. CenturyLink’s application substantially complied with state and local cable
franchise application requirements identified in the Staff Report.
15. In the cable television franchise, CenturyLink agrees it has constructed a legacy
communications system throughout the City that is capable of providing
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telephone and internet services. CenturyLink represents that it desires to upgrade
its existing legacy communications system and to install certain new facilities and
equipment in the City and intends to operate a cable communications system in
the City. See Staff Report, Exhibits 2 and 3.
16. CenturyLink further represents that upon completion of its cable service headend,
it will be capable of providing cable communications service to a portion of the
City over its existing facilities, but currently has no market penetration in the
cable communications service market in the City. See Staff Report, Exhibits 2
and 3.
17. The NSCC reviewed CenturyLink’s franchise application, published a notice of
intent to franchise and held a public hearing all in compliance with applicable
law. See Staff Report, § 1.
18. Comcast of Minnesota, Inc. (“Comcast”), currently holds a non-exclusive
franchise with the City, and, Comcast, through its predecessors in interest, has
continuously held a franchise with the City since 1983. See Staff Report, § 3
19. CenturyLink will be the first facilities based franchised cable operator to compete
against the incumbent provider in the City since the initial cable television
franchise was granted in 1983. See Staff Report, § 3.
20. Section 621(a)(1) of the Cable Television Consumer Protection and Competition
Act of 1992 was amended to provide that “. . .a franchising authority may not
unreasonably refuse to award an additional competitive franchise.” In support of
its mandate, the Conference Report noted that “[W]ithout the presence of another
multichannel video programming distributor, a cable system faces no local
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competition. The result is undue market power for the cable operator as
compared to that of consumers . . . .” See H.R. Conf. Rep. No. 102-862, at 1231
(1992); and 621 Order at ¶ 8.
21. In the Matter of Section 621(a)(1) of the Cable Communications Policy Act of
1984 as amended by the Cable Television Consumer Protection and Competition
Act of 1992, Report and Order and Further Notice of Proposed Rulemaking, MB
Docket No. 05-311 (Rel. March 5, 2007) (the “621 Order”), the FCC determined,
based on Section 621(a)(1), that it is unlawful for a local franchising authority to
refuse to grant a competitive franchise on the basis of unreasonable build-out
mandates and that such mandates “can have the effect of granting de facto
exclusive franchises, in direct contravention of Section 621(a)(1)’s prohibition of
exclusive cable franchises.” See 621 Order, at ¶ 40; see also, Staff Report, § 7(E).
22. According to the FCC, “[b]ecause a second provider realistically cannot count on
acquiring a share of the market similar to the incumbent’s share, the second
entrant cannot justify a large initial deployment. Rather a new entrant must begin
offering service within a smaller area to determine whether it can reasonably
ensure a return on its investment before expanding.” See Staff Report, § 7(D).
23. In the 621 Order, the FCC found that “new cable competition reduced rates far
more than competition from DBS [Direct Broadcast Satellite]. Specifically, the
presence of a second cable operator in a market results in rates approximately 15
percent lower than in areas without competition.” See also, Staff Report, § 2.
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24. The FCC also found that “competition for delivery of bundled services will
benefit consumers by driving down prices and improving the quality of service
offerings.” See Staff Report, § 2.
25. The FCC has concluded in the 621 Order that “broadband deployment and video
entry are ‘inextricably linked’ and that broadband deployment is not profitable
without the ability to compete with the bundled services that cable companies
provide.” See 621 Order at ¶ 51; see also, Staff Report, §§ 2 and 7.
26. The City must, pursuant to the Federal Cable Act, “allow the applicant’s cable
system a reasonable period of time to become capable of providing service to all
households in the franchise area.” See Staff Report, § 7(A).
27. Minnesota Statutes, Chapter 238, among other things, requires a level playing
field with the incumbent relating to area served (Minn. Stat. § 238.08, Subd. 1(b))
and a mandatory build out requirement within five years in initial cable franchises
(Minn. Stat. § 238.084 Subd. 1(m)(3)). See Staff Report, § 8(A)-(B), and 11(c).
CenturyLink has demonstrated a good faith basis for its position that applicable
federal law preempts these provisions of Chapter 238 because they constitute an
unreasonable barrier to entry. See Staff Report, § 11(c), and Exhibit 3 at ¶¶ 19-
23.
28. CenturyLink claims the fact that these two provisions of the Minnesota Statutes
constitute an unreasonable barrier to entry in the City is evidenced in part by the
fact that there has been no facilities-based competitor since the initial cable
communications franchise was granted. See Staff Report, Exhibit 3 at ¶¶ 19-23.
CenturyLink has agreed to fully defend, indemnify and hold the City and the
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NSCC harmless in the event this cable television franchise agreement is legally
challenged. See Staff Report, § 11(c).
29. The cable television franchise ordinance is substantially similar to the Comcast
cable television franchise, but also addresses a reasonable build-out of the City,
and economic redlining.
30. The reasonable build-out provisions in the cable television franchise satisfy the
state franchise requirement of requiring the cable system to be substantially
complete within five (5) years and the federal franchise requirement of allowing a
new cable service provider a reasonable period of time to become capable of
providing cable service to all households in the franchise area. See Minn. Stat. §
238.084, Subd. 1(m); 47 U.S.C. § 541(a)(4)(A); and Staff Report, §§ 7(A), 7(D)-
7(E), 8(B), and 11(c).
31. The 5-year cable television franchise requires CenturyLink to initially construct
its system to serve fifteen percent (15%) of the City over 2 years. CenturyLink is
required to make its best efforts to complete its initial deployment in less than 2
years and is required to equitably serve households throughout the City, including
a significant number of households below the minimum income of the City.
Quarterly meetings will allow the City and the NSCC to monitor CenturyLink’s
progress and compliance with the cable franchise and, if CenturyLink has market
success, the cable television franchise has provisions to accelerate the
construction of the cable communications system with the goal being complete
coverage of the City by the end of the franchise term.
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32. The state’s cable franchising level playing field statute is satisfied because the
cable television franchise requires (1) CenturyLink to pay the same franchise fee
as Comcast; (2) the same area of coverage as Comcast; and (3) similar, and in
some instances greater, public educational and governmental access requirements.
See Minn. Stat. § 238.08, subd. 1(b); Staff Report, §§ 7(G), 8(A), and 11(d).
33. CenturyLink submitted an application that included a design for a state-of-the-art
cable system that is capable or reliably providing a panoply of cable services to
subscribers as required by the NSCC’s Competitive Franchising Policies and
Procedures. See Staff Report, § 10(3)(b).
34. The City has considered the financial, technical, and legal qualifications of
CenturyLink. See, e.g., Staff Report, § 10(3).
35. CenturyLink has the financial, technical, and legal qualifications to operate a
cable communication system in the City.
36. A CenturyLink cable television franchise will provide a meaningful, distinct
alternative to existing multichannel video programming distributors (including
existing cable, direct broadcast satellite and other companies), will result in
greater consumer choice, is in the public interest for economic development in the
City. See Staff Report, Exhibits 2 and 3. CenturyLink has also promised to
provide additional enhancements to PEG offerings to the City. For example, it
has agreed in the franchise to provide every PEG channel in HD and to allow the
City to share live programming with other cities in the Twin Cities by providing a
Twin Cities Metro PEG Interconnect Network.
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37. Consumers and residents of the City will also benefit from CenturyLink’s
competitive presence because it will drive broader deployment of higher
broadband speeds. See Staff Report, Exhibits 2 and 3
38. CenturyLink has agreed to an initial deployment area, and it will serve additional
areas based upon its market success, as defined in the franchise agreement, which
the FCC has deemed to be a reasonable deployment model. See Staff Report, §
7(E)(b).
39. The City and its citizens will benefit from facilities based competition in the cable
television market. See Staff Report, § 2.
40. All prior actions of the NSCC related to the CenturyLink Cable Franchise
Application are hereby ratified and approved.
Therefore, based on the foregoing, the City Council has determined that it is in the best
interests of the City and its residents to enter in to a cable television franchise
ordinance/agreement with CenturyLink, in the form negotiated by the NSCC and that these
Findings be incorporated therewith.
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REQUEST FOR COUNCIL CONSIDERATION
Meeting Date: December 8, 2015
Resolution-Approving Summary Publication of Ordinance 2015-06 CenturyLink Franchise
Agreement.
OVERVIEW:
In front of you this evening is a resolution approving summary publication of Ordinance 2015-06
CentruryLink Franchise Agreement. Minnesota Statute 412.191 (4) allows for summary publications
in cases where the ordinance publications are lengthy, or ordinances include charts or maps.
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190
CITY OF ST. ANTHONY VILLAGE
STATE OF MINNESOTA
RESOLUTION 15-082
A RESOLUTION APPROVING SUMMARY PUBLICATION FOR ORDINANCE
2015-06
WHEREAS, the City Council of the City of St. Anthony has adopted the above referenced
ordinance; and
WHEREAS, Minnesota Statutes, section 412.191, subdivision 4 allows publication by title and
summary in the case of lengthy ordinances or those containing maps or charts; and
WHEREAS, the City Council believes that the following summary would clearly inform the
public of the intent of Ordinance 2015-06.
NOW, THEREFORE, BE IT RESOLVED that: the following summary of Ordinance 2015-06
shall be published in the official paper in lieu of the entire ordinance.
SUMMARY PUBLICATION
Ordinance 2015-06
An Ordinance Approving CenturyLink Franchise Agreement
AN ORDINANCE GRANTING A FRANCHISE TO QWEST BROADBAND SERVICES,
INC., D/B/A CENTURYLINK, TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE
COMMUNICATIONS SYSTEM IN THE CITY OF ST.ANTHONY; SETTING FORTH
CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR
REGULATION AND USE OF THE SYSTEM AND THE PUBLIC RIGHTS-OF-WAY IN
CONJUNCTION WITH THE CITY’S RIGHT-OF-WAY ORDINANCE, IF ANY, AND
PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS HEREIN;
The City Council of the City of ST.ANTHONY ordains:
STATEMENT OF INTENT AND PURPOSE
Qwest Broadband Services, Inc., d/b/a CenturyLink (“Grantee”), applied for a cable franchise to
serve the City. The City adopted separate findings related to the application and the decision to
grant a cable franchise to Grantee, which shall be incorporated herewith by reference. The City
intends, by the adoption of this Franchise, to bring about competition in the delivery of cable
services in the City.
Adoption of this Franchise is, in the judgment of the Council, in the best interests of the City and
its residents.
191
The specific terms and conditions of the Franchise Ordinance, Sections 1 to 14, and Exhibits are
available for review at City Hall, 3301 SILVER LAKE ROAD.
Adopted this 8th day of December, 2015.
_________________________________
Jerome O. Faust, Mayor
ATTEST: _________________________
Nicole Miller, City Clerk
Reviewed for administration: _________________________________
Mark Casey, City Manager
192
REQUEST FOR COUNCIL CONSIDERATION
Meeting Date: December 8, 2015
Ordinance 2015-07 – Setting Sewer, Water and Storm Water Charges for 2016
OVERVIEW:
In front of you this evening is the third and final reading of an ordinance to approve the 2016 sewer,
water and storm water charges. The first reading was at the November 10, 2015 at the St. Anthony
City Council meeting, the second reading was at the November 24, 2015 at the St. Anthony City
Council meeting. Attached is the proposed Ordinance.
Following the adoption of the ordinance, the ordinance will be published in the St. Anthony Bulletin
which is the official newspaper for the City of St. Anthony. The ordinance will become effective
January 1, 2016.
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194
CITY OF SAINT ANTHONY VILLAGE
STATE OF MINNESOTA
ORDINANCE NO. 2015-07
AN ORDINANCE AMENDING SECTIONS §33.018 SEWER CHARGES TO OWNERS; 33.036
WATER CHARGES TO OWNERS AND §33.090 CHARGES FOR STORM WATER FACILITIES
FOR ST. ANTHONY VILLAGE EFFECTIVE JANUARY 1, 2016
The City Council of the City of Saint Anthony Village ordains as follows:
Section One. Amendment to the City of Saint Anthony Village City Code Sections §33.018,
33.036 and §33.090 of the City Code of the City of Saint Anthony Village is hereby amended as follows.
The deleted language is represented by strikethrough text. The additional language is represented
by text.
33.018 SEWER RATES: $4.38 per 1,000 gallons
33.036 WATER RATES.
Water bills will be computed quarterly based on metered water used according to the tiered
rates system.
RESIDENTIAL Consumption (gallons) Rate/per 1,000 gallons
TIER I 0-7,500 $3.10
TIER II 7,500-15,000 $3.27
TIER III 15,000-22,500 $3.59
TIER IV 22,500-30,000 $4.12
TIER V Over 30,000 $5.17
COMMERCIAL Consumption (gallons) Rate/per 1,000 gallons
TIER I 0-7,500 $3.10
TIER II 7,500-53,500 $3.27
TIER III 53,500-175,000 $3.59
TIER IV 175,000-300,000 $4.12
TIER V Over 300,000 $5.17
WILSHIRE Consumption( gallons) Rate/per 1,000 gallons
TIER I 0-7,500 $3.10
TIER II 7,500-510,000 $3.27
TIER III 510,000-610,000 $3.59
TIER IV 610,000-710,000 $4.12
TIER V Over 710,000 $5.17
SAVHS Consumption (gallons) Rate/per 1,000 gallons
TIER I 0-7,500 $3.10
TIER II 7,500-850,000 $3.27
TIER III 850,000-1,150,000 $3.59
TIER IV 1,150,000-1,450,000 $4.12
TIER V Over 1,450,000 $5.17
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HAPPY’S Consumption (gallons) Rate/per 1,000 gallons
TIER I 0-7,500 $3.10
TIER II 7,500-3,650,000 $3.27
TIER III 3,650,000-4,650,000 $3.59
TIER IV 4,650,000-5,650,000 $4.12
TIER V Over 5,650,000 $5.17
33.090 STORM WATER FACILITIES: (billed quarterly)
Effective Date: This ordinance shall become effective as of its publication.
First Reading: November 10, 2015
Second Reading: November 24, 2015
Adopted: December 8, 2015
CITY OF SAINT ANTHONY VILLAGE
By:_________________________________
Jerome O. Faust, Mayor
ATTEST:
By:_________________________________
Nicole Miller, City Clerk
Publish: St. Anthony Bulletin
Publication Date: December 16, 2015
Classification Charge (per acre)
1 $61.20
2 $59.00
3 $59.00
4 $140.93
5 $179.75
6 $224.55
196
Date Type Staff Present
December 14 Special
5:30pm Worksession City Council
City Manager
December 22 Regular City Council
City Manager
January 12 Regular
Swearing in Faust, Gray & Brever
Housekeeping Resolutions
Resolution for the Street Improvement Bond Reimbursement
Quarterly Donations & Grants
Swearing in of new Police Officer
City Council
City Manager
Police Chief
January 14 & 15 Special Goal Setting
City Council
City Manager
Department Heads
January 26 Regular
2016 Parks Commission Work Plan (motion only)
2016 Planning Commission Work Plan (motion only)
GMHC Agreement
City Council
City Manager
City Engineer
February 9 Regular
Planning Commission items from January
Administration Annual Report
Finance Annual Report
2016 Street Project Call for Hearing on Improvements, Call for Hearing on Assessments,
Order Preparation of Assessments
City Council
City Manager
Finance Director
February 23 Regular City Council
City Manager
March 8 Regular
Planning Commission Items from February
Liquor Annual Report
Fire Annual Report
2016 Street Project Public Hearing, Order Improvements, Adopt & Confirm Assessments,
Award Contract for Construction, Call for Sale of GO Bonds
2016 Strategic Plan (motion only)
City Council
City Manager
Fire Dept
Liquor Op Manager
March 14 Special
5:30 p.m.Joint Meeting with Parks Commission City Council
City Manager
March 22 Regular
Adoption of Parks Commission Work Plan (motion only)
Public Works Annual Report
Police Annual Report
City Council
City Manager
Public Works Director
Police Dept
March 28 Special
5:30pm Joint meeting with Planning Commission City Council
City Manager
April 12 Regular
Planning Commission Items from March
2016 Street Project Accept Offer for Bonds, Approve Sale of Bonds
Quarterly Donations & Grants
City Council
City Manager
April 26 Regular 1st Quarter Goals Update City Council
City Manager
May 10 Regular Planning Commission Items from April
Recognition of Chamber's Villager and Business of the Year
City Council
City Manager
FUTURE COUNCIL AGENDA ITEMS
2015
2016
197
Date Type Staff Present
FUTURE COUNCIL AGENDA ITEMS
May 24 Regular
Salo Park Concert Series
Insurance Renewal
Tort Limits - Consent
Police Presentation
City Council
City Manager
Police Chief
June 14 Regular Planning Commission Items from May
Order Feasibility Report for 2017 Street Project
City Council
City Manager
City Engineer
June 28 Regular Audit Presentation City Council
City Manager
Finance Director
July 12 Regular
Planning Commission items from June
Quarterly Donations & Grants
Quarterly Goals Update
VillageFest Presentation
City Council
City Manager
July 26 Regular Night to Unite Presentation
Night to Unite Proclamation
City Council
City Manager
Police Chief
August 9 Regular
Planning Commission items from July
SANB #282 Presentation
City Council
City Manager
August 23 Regular Budget Presentation
Liquor Operations Mid-Year Report
City Council
City Manager
Liquor Op Mgr
Finance Director
September 13 Regular
Planning Commission items from August
2017 Preliminary Operating Budget and Levy-Public Hearing
2017 Street Project Accept Feasiblity Report, Order Plans and Specifications
City Council
City Manager
Finance Director
September 27 Regular
Fire Prevention Presentation
Kiwanis Peanut Day
City Council
City Manager
Fire Dept
October 11 Regular
Planning Commission items from September
Quarterly Donations & Grants
Certification of Delinquent Accounts
City Council
City Manager
October 25 Regular
Quarterly Goals Update
Fire Relief Ratifying Pension Benefit
Ordinance Setting Fees for 2016 - 1st Reading-Public Hearing
City Council
City Manager
November 8 Regular 2016 General Election
City Council
City Manager
November ?Regular
Canvass Election Results from the November 8th General Election
Ordinance Setting Water & Sewer Rates for 2017 - 1st Reading-Public Hearing
City Council
City Manager
November 22 Regular
Ordinance Setting Water & Sewer Rates for 2017 - 2nd Reading
Presentation of St. Anthony Police Reserve program
Fire Prevention Poster Winners
City Council
City Manager
Finance Director
Police Dept
Fire Dept
198
Date Type Staff Present
FUTURE COUNCIL AGENDA ITEMS
December 13 Regular
Planning Commission items from November
Appoint Parks and Planning Commissioners and Chair/Vice Chairs
Setting Salary of City Manager
Authorizing Transfers & Closing of Specified Funds
Setting the 2017 City & HRA Budgets and Final Property Tax Levy -Public Hearing
Ordinance Setting the Water& Sewer Rates for 2017 - final reading
2017 Street Project Approve Plans & Specifications, Authorize Advertisement for Bids
2017 Fee Schedule
City Council
City Manager
Finance Director
December 27 Regular
City Council
City Manager
Items Pending:
~ Worksessions
199
10 River Park Plaza St. Paul, MN 55107 www.comcastcorporation.com
VIA ELECTRONIC MAIL
December 4, 2015
Mayor Jerry Faust
City of St. Anthony
3301 Silver Lake Road
St. Anthony, MN 55418
Dear Mayor Faust:
I am writing to provide Comcast’s comments regarding the CenturyLink Cable TV Franchise
Ordinance that was presented for a First Reading at the November 10, 2015, City Council
Meeting (“Summary” and “Proposed Franchise”). Thank you in advance for considering this
input. As we have stated previously and in the public record in front of the North Suburban
Cable Communications Commission (see attached), Comcast welcomes robust competition and
we do not oppose the granting of an equitable cable franchise to Qwest Broadband Services or
its d/b/a, CenturyLink.
Comcast is however concerned with the competitive inequities created by some of the
obligations in the proposed CenturyLink franchise that are materially different from the
obligations in Comcast’s current franchise with the City. As you are aware from the Summary,
Minnesota Statute 238.08, subd. 1(b) requires that the City cannot grant an additional franchise
with “terms and conditions more favorable or less burdensome than those in the existing
franchise pertaining to (1) the area served…” Furthermore, the FCC expressly allows buildout
requirements in franchise agreements so long as they are “reasonable.” 1
Section 2(7) of CenturyLink’s proposed franchise requires that CenturyLink build to only 15% of
the City. The supporting documents, however, contains no discussion of what may be a
reasonable requirement for [X] or why CenturyLink’s proposal, that fails to address 85% of its
citizens, meets this standard. “Less burdensome” certainly requires more than what
CenturyLink has offered. And while Section 2(7) of the proposed franchise requires that “a
significant number of households below the medium income of the city” it offers no instruction
as where CenturyLink must build and no clear way to ensure CenturyLink meets that standard.
1 Implementation of Section 621(a)(1) of the Cable Communications Policy Act of 1984 as amended by the Cable
Television Consumer Protection and Competition Act of 1992, Order on Reconsideration, at para.7 (rel. Jan 21,
2015).
Mayor Jerry Faust
December 4, 2015
Page 2 of 3
At the very least, the City must impose actual binding and enforceable requirements to serve
equitably throughout the community. This will protect competitive and consumer equity and
prevent selective service deployment. It will equalize the investment that all providers will be
required to make in return for access to the public rights of way. It will ensure that competition
develops according to which provider can best serve subscribers and not according to which
provider enjoys the most advantageous regulatory requirements. Finally, it will meet both
state and federal requirements.
PEG funding will also be inequitable and more burdensome on Comcast, and all cable
customers, if the CenturyLink franchise is adopted as proposed. Again, Minnesota statute is
clear on this issue. Minnesota Statutes 238.08, subd. 1(b) requires that the City cannot grant
an additional franchise with “terms and conditions more favorable or less burdensome than
those in the existing franchise pertaining to (2) public, educational, or governmental access
requirements...” Inequitable PEG funding is a clear example of creating more favorable
franchise conditions to a new entrant, and in turn, a more advantageous regulatory
environment.
Comcast is required to pay three significant up‐front annual grants to the Commission: a
$50,000 annual equipment grant; a $100,000 annual scholarship grant that increases annually
and was $109,693.66 in 2015; and an annual PEG grant (paid quarterly) that also increases
annually and was $1,347,166.47 in 2015. The amount of these grants, in total, is what the
Commission has claimed is required to run its PEG operations. This total PEG funding amount,
which was $1,606,860.13 in 2105 and is growing every year, is paid to the Commission as up‐
front cash grants, regardless of how many subscribers Comcast has in the Commission area.
Comcast subsequently recovers the total amount from subscribers as a per‐month, pass
through amount. This means that a lower numbers of Comcast subscribers in the Commission
area results in a higher per‐month pass‐through for all Comcast customers.
Section 6(4) of CenturyLink’s proposed franchise does not require CenturyLink to participate in
any of the current up‐front grants that Comcast is required to provide the Commission but
requires only that CenturyLink match our monthly per‐subscriber PEG fee in which Comcast
uses to recover the grants. It is absolutely more burdensome on Comcast to have to contribute
its own capital as up‐front cash grants as opposed to the collecting and remitting regime that is
being offered to CenturyLink.
As important, not requiring CenturyLink to participate in the up‐front grant funding means that
instead of both cable operators and cable customers sharing the burden of the PEG funding, the
Commission is expanding the burden on cable customers. The monthly per‐subscriber PEG fee
Mayor Jerry Faust
December 4, 2015
Page 3 of 3
is determined solely on the number of customers that Comcast has, and could rise dramatically
if Comcast loses customers. This means that the PEG fee burden on all cable customers also
rises, and yet this rise has absolutely no relationship to the need of the Commission for
increased PEG funding.
If the Commission continues to require significant up‐front capital grants those grants must be
shared by both cable operators. In the alternative, Comcast will also move to a per‐month, per‐
subscriber PEG fee funding mechanism of $4.15.
Comcast requests that the City Council require these issues be discussed now to ensure that the
obligations on CenturyLink are not more favorable or less burdensome than those in Comcast’s
existing franchise. As always, please feel free to call me if you have any questions or would like
to discuss these issues further.
Sincerely,
Emmett V. Coleman
Vice President External Affairs
CC: Bonnie Brever, Councilmember
Hal Gray, Councilmember
Jan Jenson, Councilmember
Randy Stille, Councilmember
Mark Casey, City Manager