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HomeMy WebLinkAbout12-14-2015 Regular MeetingMayor COLUMBIA Gary L. Peterson v HEIGHTS Councilmembers Robert A. Williams Bruce Nawrocki City of Columbia Heights Donna Schmitt 59040 Avenue NE, Columbia Heights, MN 55421 -3878 (763) 706 -3600 TDD (763) 706 -3692 John Murzyn, Jr. Visit our website at: www.columbiaheightsmn.gov City Manager Walter R. Fehst The following is the agenda for the regular meeting of the City Council to be held at 7:00 PM on Monday, December 14, 2015 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota. The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for disabled persons are available upon request when the request is made at least 96 hours in advance. Please call the City Clerk at 763 - 706 -3611, to make arrangements. (TDD /706 -3692 for deaf or hearing impaired only.) 1. CALL TO ORDER 2. ROLL CALL 3. INVOCATION Invocation provided by Jim Kim or Dana Caraway, Church of All Nations 4. PLEDGE OF ALLEGIANCE S. ADDITIONS /DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 6. 7. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the City Council meeting of November 23, 2015 pg 6 MOTION: Move to approve the minutes of the City Council Work Session of December 7, 2015 pg 16 B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the Public Arts Commission Minutes from August 12, 2015 pg 18 MOTION: Move to accept the Public Arts Commission Minutes from September 9, 2015 pg 22 MOTION: Move to accept the Public Arts Commission Minutes from October 14, 2015 pg 24 MOTION: Move to accept the Library Board Meeting Minutes from November 4, 2015 pg 27 MOTION: Move to accept the EDA Minutes from October 12, 2015 pg 30 MOTION: Move to accept the Traffic Commission Minutes from August 3, 2015 pg 40 City of Columbia Heights City Council Agenda December 14, 2015 Page 2 C. Consideration of canceling the City Council meeting scheduled for December 28, 2015. pg 43 MOTION: Move to waive the reading of Resolution No. 2015 -96, there being ample copies available to the public. MOTION: Move to adopt Resolution 2015 -96, being a Resolution canceling the City Council meeting scheduled for December 28, 2015. D. Approve Volunteer Firefighter Relief Association Bylaw Change pg 45 MOTION: Move to approve the addition of Article IV, Section 4.6 to Appendix D of the Columbia Heights Volunteer Firefighters Relief Association Bylaws. E. Approve Transfer of Funds from General Fund to Fire Department Budget pg 47 MOTION: Move to approve the transfer of $24,981.75 from the General Fund to the Fire Department budget. F. Authorize Mayor and City Manager to Enter into Contract for Police Service with the City of Hilltop pg 48 MOTION: Move to authorize the Mayor and the City Manager to enter into a Police Service Contract with the City of Hilltop starting January 1, 2016 and extending through December 31, 2018 at the rates specified in the contract. G. Authorize School Liaison Officer Contract with Columbia Heights School District pg 53 MOTION: Move to authorize the Mayor and Police Chief to enter into a Joint Powers agreement with Columbia Heights Public Schools for the provision of a Police School Liaison Officer program as stipulated in the Joint Powers Agreement for the period of January 1 through December 31, 2016. H. Approve Transfer of Funds pg 70 MOTION: The $8,330 received from the Columbia Heights School District for various traffic direction and security details, and the $4,000 received from Anoka County as partial reimbursement for overtime for our officer assigned to the Anoka Hennepin Drug Task Force, and the $720 received from Anoka County as reimbursement for detox transports, and the $492.34 received from Coon Rapids for our participation in the Toward Zero Death traffic enforcement be transferred to line 1020, Overtime. The total is $13,542.34. I. Approve the extension of the fire service contract with the City of Hilltop pg 71 MOTION: Move to authorize the Mayor and City Manager to enter into a three -year Fire and EMS service contract with the City of Hilltop starting January 1, 2016 and extending through December 31, 2018. J. Adopt Resolution 2015 -99 accepting the Feasibility Report for Street Rehab Program Zones 2 and 3 and ordering the Public Improvement Hearing, City Project No. 1602 pg 77 MOTION: Move to waive the reading of Resolution 2015 -99, there being ample copies available to the public. MOTION: Move to adopt Resolution 2015 -99, being a resolution accepting the Feasibility Report for the Street Rehab Program Zones 2 and 3, City Project No. 1602, and ordering the Public Improvement Hearing beginning at6:45 PM on February 1, 2016. `a City of Columbia Heights City Council Agenda December 14, 2015 Page 3 K. Adopt Resolution 2015 -100 accepting the Feasibility Report for 2016 MSA Rehab and ordering the pg gg Public Improvement Hearing, City Project No. 1605. MOTION: Move to waive the reading of Resolution 2015 -100, there being ample copies available to the public. MOTION: Move to adopt Resolution 2015 -100, being a resolution accepting the Feasibility Report for 2016 MSA Rehab, City Project No. 1605, and ordering the Public Improvement Hearing beginning at 7:00 PM on March 7, 2016. L. Adopt Resolution 2015 -101 approving plans and specifications and ordering advertisement for bids for Stinson Boulevard Improvements. pg 97 MOTION: Move to waive the reading of Resolution 2015 -101, there being ample copies available to the public. MOTION: Move to adopt Resolution 2015 -101 approving the plans and specifications and ordering Advertisement for Bids for Stinson Boulevard Improvements, City Project 1508. M. Resolution 2015 -102 designating "No Parking" on the west side of Stinson Boulevard from 37th p 100 Avenue NE to Silver Lane NE for the 2016 Street and Utility Improvement Project MOTION: Move to waive the reading of Resolution 2015 -102, there being ample copies available to the public. MOTION: Move to adopt Resolution 2015 -102 designating "No Parking" on the west side of Stinson Boulevard from 37th Avenue NE to Silver Lane NE for the 2016 Street and Utility Improvement project. N. Adopt Resolution 2015 -103 being a Resolution to use an alternative method to disseminate Bids and Requests p 102 MOTION: Move to waive the reading of Resolution 2015 -103, there being copies available to the public. MOTION: Move to adopt Resolution 2015 -103 being a resolution to use an alternative method to disseminate bids and request. O. Approve final compensating change order and final payment for miscellaneous concrete, Project 1400 p 105 MOTION: Move to approve the final compensating change order and accept the work for Miscellaneous Concrete, City Project No. 1400; and to authorize final payment of $15,918.75 to SpeckTacular Companies, Inc. of Elko, MN. P. Consideration to Re -Issue Rental License p 110 MOTION: Move to issue a rental- housing license to Jordan Gall to operate the rental property located at 3906 Tyler Street N.E. in that the provisions of the Property Maintenance Code have been complied with Q. Approve Business License Applications p 111 MOTION: Move to approve the items as listed on the business license agenda for December 14, 2015 R. Payment of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8, the City Council has p 114 received the list of claims paid covering check number 159178 through 159436 in the amount of $ 1,878,324.24. City of Columbia Heights December 14, 2015 City Council Agenda Page 4 MOTION: Move to approve the Consent Agenda items. 8. PUBLIC HEARINGS A. First Reading of Ordinance 1624, a Cable Television Franchise Ordinance pg 124 MOTION: Move to close the public hearing and to waive the reading of Ordinance 1624, a Cable Television Franchise Ordinance, there being ample copies available to the public. MOTION: Move to establish the second reading of Ordinance 1624, for Monday, January 11, 2016, at approximately 7:00 p.m. in the City of Columbia Heights Council Chambers. B. Resolution 2015 -97, adopting a budget for the year 2016, setting the city levy, approving the HRA levy, and approving a tax rate increase. pg 198 MOTION: Move to waive the reading of Resolution 2015 -97, there being ample copies available to the public. MOTION: Move to close the public comment and adopt Resolution 2015 -97, being a resolution adopting a budget for the year 2016, setting the city levy, approving the HRA levy, and approving a tax rate increase. 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions 1. Utility Rate Recommendations pg 203 MOTION: Move to waive the reading of Resolution 2015 -98, there being ample copies available to the public. MOTION: Move to adopt Resolution 2015 -98 which establishes utility rates for Water Service, Sanitary Sewer Service, Storm Sewer and Refuse for 2016 through 2019. 2. Request Approval of Emergency Ordinance No. 1625 /Establishing a Moratorium Regulating the Residency Location of Predatory Offenders Within the City pg 222 MOTION: Move to waive the reading of Emergency Ordinance No. 1625, being an ordinance establishing a moratorium regulating the residency location of predatory offenders within the city, there being ample copies available to the public. MOTION: Move to adopt Emergency Ordinance No. 1625, being an ordinance establishing a moratorium regulating the residency location of predatory offenders within the city, and publish a summary ordinance. B. Bid Considerations I. Adopt Resolution 2015 -104 being a resolution accepting bids and awarding the contract for 2015 Sanitary Sewer Lining, City Project No. 1504 pg 227 MOTION: Move to waive the reading of Resolution 2015 -104, there being ample copies available to the public. MOTION: Move to adopt Resolution 2015 -104, being a resolution accepting bids and awarding the contract for 2015 Sanitary Sewer Lining, City Project No. 1504 to Visu -Sewer of Pewaukee, Wisconsin based upon their low, qualified, responsible base bid in the amount of $97,414.25 and accepting Alternate 1 in the amount of $38,025 for a total contract award of $135,439.25, with funds to be appropriated from Fund 652 - 51504 -5185; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. 4 City of Columbia Heights December 14, 2015 City Council Agenda Page 5 2. Accept proposals and award contract for Water Tower Rehab Engineering Services pg 230 MOTION: Move to award Engineering Services for the Water Tower Rehab, Project 1507, to the firm of Bolton & Menk based upon their proposal dated November 13, 2015 for a lump sum fee of $43,000, plus reimbursables, appropriated from Fund 651 - 51507 -3050. C. New Business and Reports 10. ADMINISTRATIVE REPORTS Report of the City Manager Report of the City Attorney 11. CITIZENS FORUM At this time, citizens have an opportunity to discuss with the Council items not on the regular agenda. Citizens are requested to limit their comments to five minutes. Anyone who would like to speak shall state his /her name and address for the record. 12. ADJOURNMENT Walt Fehst, City Manager OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING NOVEMBER 23, 2015 The following are the minutes for the regular meeting of the City Council held at 7:00 PM on MONDAY November 23, 2015 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota 1. CALL TO ORDER Mayor Peterson called the meeting to order at 7:02 p.m. 2. ROLL CALL Present: Mayor Peterson, Councilmembers Nawrocki, Schmitt, Williams and Murzyn, Jr. Also Present: Walt Fehst; City Manager, Jim Hoeft; City Attorney, Keith Windschitl; Recreation Director, John Larkin; Assistant Fire Chief, Kathy Young; Assistant City Engineer, Joseph Kloiber; Finance Director, Kelli Bourgeois; HR Director /Assistant to the City Manager; Joe Hogeboom; Community Development Director, Katie Bruno; City Clerk /Council Secretary 3. INVOCATION Invocation provided by Bob Lyndes, Crest View Senior Community 4. PLEDGE OF ALLEGIANCE Recited S. ADDITIONS /DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) Items 8C and 8D were removed from the agenda. The properties were brought into compliance. Councilmember Schmitt stated she would like to report on her recent attendance to the Metro Cities event through the League of Minnesota Cities. This will be added to Section 9C. 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS Councilmember Murzyn, Jr. announced that Firefighter Bob Niznik recently retired after 16 years of service, and thanked him for his committed service. 7. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the Council meeting of November 9, 2015 MOTION: Move to approve the minutes of the work session of November 9, 2015 B. Accept Board and Commission Meeting Minutes 6 MOTION: Move to accept the Park & Recreation Commission Minutes from August 26, 2015 C. Approve Gambling Permit, First Lutheran Church, Bingo event, December 4, 2015 MOTION: Move to waive the $25.00 permit fee for the First Lutheran Church one -time charitable gambling permit. MOTION: Move to direct the City Manager to forward a letter to the State Charitable Gambling Control Board indicating that the City of Columbia Heights has no objection to a gambling permit for First Lutheran Church to conduct Bingo and a raffle at their event being held December 4, 2015 at 1555 40th Avenue NE, Columbia Heights; and furthermore, that the City of Columbia Heights hereby waives the remainder of the thirty -day notice to the local governing body. D. Establish John P. Murzyn Hall rental rates for 2017. *Removed for discussion. E. Adopt Resolution 2015 -94 accepting the Feasibility Report for Zone 7B Street Seal Coat Project and ordering the Public Improvement Hearing, City Project No. 1501. *Removed for discussion. F. Adopt Resolution 2015 -95 accepting the Feasibility Report for Stinson Boulevard Street Rehabilitation from 37th to 40th Avenues and ordering the Public Improvement Hearing, City Project No. 1508. *Removed for discussion. G. A summary of Ordinance No. 1622 for publication, relating to an Emergency Interim Ordinance imposing a moratorium on auto related uses throughout the City of Columbia Heights. *Removed for discussion. H. Approve Rental License Applications MOTION: Move to approve the items listed for rental housing license applications for November 23, 2015, in that they have met the requirements of the Property Maintenance Code. 1. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for November 23, 2015. J. Payment of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8, the City Council has received the list of claims paid covering check number 159013 through 159177 in the amount of $560,155.65. Councilmember Nawrocki requested that items D, E, F and G be removed from the Consent Agenda for discussion. Motion by Councilmember Nawrocki, seconded by Councilmember Williams to approve Consent Agenda items A, 8, C, H, /and J. All Ayes, Motion Carried. Councilmember Nawrocki requested that the following items be removed from the Consent Agenda for discussion: FA D. Establish John P. Murzyn Hall rental rates for 2017 Recreation Director Keith Windschitl explained that in comparison to other venues, Murzyn Hall is underpriced. The Park & Recreation Commission has proposed a 6% increase for Saturday rentals. Councilmember Nawrocki asked if a comparison with other venues have been done. Director Windschitl reported he has, and we are priced lower than less than comparable sites. Motion by Councilmember Williams, seconded by Councilmember Schmitt to adopt the 2017 John P. Murzyn Hall rental rates, as outlined by the Park & Recreation Commission at their meeting on October 28, 2015. All Ayes, Motion Carried. E. Adopt Resolution 2015 -94 accepting the Feasibility Report for Zone 7B Street Seal Coat Project and ordering the Public Improvement Hearing, City Project No. 1501 Councilmember Nawrocki commented that the streets are currently in pretty good condition. Assistant City Engineer Kathy Young reported the City seal coats the surfaces every 8 years, as this helps preserve the surface. Motion by Councilmember Schmitt, seconded by Councilmember Murzyn, Jr. to waive the reading of Resolution 2015 -94, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Schmitt, seconded by Councilmember Murzyn, Jr. to adopt Resolution 2015 -94, being a resolution accepting the feasibility report for Zone 78 Street Seal Coat, City Project No. 1501, and ordering the Public Improvement Hearing beginning at 6:30 p.m. on February 1, 2016. All Ayes, Motion Carried. F. Adopt Resolution 2015 -95 accepting the Feasibility Report for Stinson Boulevard Street Rehabilitation from 37th to 40th Avenues and ordering the Public Improvement Hearing, City Project No. 1508 Councilmember Nawrocki requested an overview of the project, and what will be done to insure access for residents. Assistant City Engineer Kathy Young reported the project includes removing the concrete street, and replacing with a bituimus surface with concrete curb and gutter. Sidewalks or trails will be added to each side of the street. Young stated she will work with the contractor to assure access for residents. Councilmember Schmitt suggested looking at the northbound right turn lane onto 39th Ave, as it is narrow for MTC buses to make the turn. Young will review the turn lane with the City of St. Anthony. MOTION: Move to waive the reading of Resolution 2015 -95, there being ample copies available for the public. All Ayes, Motion Carried. MOTION: Move to adopt Resolution 2015 -95, being a resolution accepting the Feasibility Report for Stinson Boulevard from 37Th to north of 40th Avenues, City Project No. 1508, and ordering the Public Improvement Hearing beginning at_6:30 p.m. on March 7, 2016. 4 Ayes, 1 Nay, Motion Carried. Ayes: Peterson, Williams, Schmitt, Murzyn, Jr. Nay: Nawrocki. G. A summary of Ordinance No. 1622 for publication, relating to an Emergency Interim Ordinance imposing a moratorium on auto related uses throughout the City of Columbia Heights. Community Development Director Joe Hogeboom noted the Council approved Ordinance No. 1622; an Emergency Ordinance, for a six month moratorium for auto related businesses at the November 91h City 8 Council meeting. Hogeboom explained that by publishing a summary rather than the entire ordinance, the City will save a substantial amount of money. Councilmember Schmitt questioned the validity of the first reading, as the City Charter requires the council vote on the emergency portion, prior to voting on the ordinance. City Attorney Jim Hoeft explained that by the nature of the moratorium, and emergency is qualified, and the first reading was valid. Councilmember Schmitt stated she is not in agreement. Councilmember Nawrocki agreed with the City Attorney. City Attorney Hoeft clarified that the ordinance took effect immediately. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to waive the reading of the summary of Ordinance No. 1622, there being ample copies available to the public. All Ayes, Motion carried. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to amend the motion to the remove the language indication a 30 day effective date. 4 Ayes, 1 Nay Motion carried. Ayes, Peterson, Williams, Murzyn, Jr., Nawrocki. Nay; Schmitt. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to approve the summary of Ordinance No. 1622 for publication, relating to an Emergency Interim Ordinance imposing a moratorium on auto related uses throughout the City of Columbia Heights. 4 Ayes, 1 Nay Motion carried. Ayes; Peterson, Williams, Murzyn, Jr., Nawrocki. Nay; Schmitt. 8. PUBLIC HEARINGS A. Consideration of a Cable Television Franchise with Centurylink Kelli Bourgeois Human Resource Director /Assistant to the City Manager requested the Public Hearing be continued to the December 14th meeting. Mayor Peterson opened the Public Hearing at 7:35 PM. Motion by Councilmember Williams, seconded by Councilmember Murzyn to continue the Public Hearing for Consideration of a Cable Television Franchise with CenturyLink until December 14, 2015. All Ayes, Motion carried. B. Consideration of Declaration of a nuisance and abatement of violations within the City of Columbia Heights is requested regarding the property at 4801 Jefferson Street NE for failure to meet the requirements of the Residential Maintenance Code. Assistant Fire Chief John Larkin reported the property has a fence in disrepair. Motion by Councilmember Nawrocki seconded by Councilmember Williams to close the public hearing and to waive the reading of Resolution Number 2015 -90, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Murzyn, Jr. seconded by Councilmember Nawrocki to adopt Resolution Number 2015 -90, being a Resolution of the City Council of the City of Columbia Heights declaring the property listed a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. All Ayes, Motion Carried. C. Removed from agenda. 9 D. Removed from agenda. E. Consideration of Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against the rental property at 3906 Tyler Street NE for failure to meet the requirements of the Residential Maintenance Codes. Assistant Fire Chief John Larkin reported the property has a couple of outstanding violations, pertaining to electrical repairs. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to close the public hearing and to waive the reading of Resolution Number 2015 -93, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to adopt Resolution Number 2015 -93, being a Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article /V, Section 5A.408(A) of the rental license listed. All Ayes, Motion Carried. F. An Ordinance amending City Code of 2005 relating to the Floodplain Management Overlay District requirements within the City of Columbia Heights. Community Development Director Joe Hogeboom reported FEMA has been working to update flood plain maps to provide consistency. Hogeboom explained that residents will be able verify their classification on line, the dispute process was also explained. Motion by Councilmember Williams seconded by Councilmember Schmitt to waive the reading of Ordinance No. 1623, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Williams seconded by Councilmember Schmitt to approve the Ordinance No. 1623, amending City Code of 2005 relating to the Floodplain Management Overlay District requirements within the City of Columbia Heights. All Ayes, Motion Carried Motion by Councilmember Williams seconded by Councilmember Schmitt to approve the summary of Ordinance No. 1623 for publication relating to the Floodplain Management Overlay District requirements within the City of Columbia Heights. All Ayes, Motion Carried 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations C. New Business and Reports Councilmember Schmitt reported she recently attended the League of Minnesota Cities Metro Regional meeting. Topics included workplace safety, preparing the comp plan and transportation discussions. 10. ADMINISTRATIVE REPORTS Report of the City Manager City Manager Fehst reported the December 7th work session will include discussions regarding the 2016 budget. Because of the re- assessments of market value in the City, we will receive less in fiscal disparities than anticipated, it was noted this could likely be offset by using LGA funds. Fehst explained options can be discussed further at the December work session. Councilmember Nawrocki reported the recent City Newsletter indicated the City's portion of the 10 property tax increase as 6.6 %, however his taxes are increasing considerably more; 13 %. Mr. Nawrocki suggested reducing expenditures in order to reduce the overall levy. Report of the City Attorney Mr. Hoeft had nothing report. 11. CITIZENS FORUM At this time, citizens have an opportunity to discuss with the Council items not on the regular agenda. Citizens are requested to limit their comments to five minutes. Anyone who would like to speak shall state his /her name and address for the record. Mayor Peterson reported the "Taste of Heights" was a great success! Gratitude was expressed to the many people who helped and contributed. Peterson reminded everyone to remember our servicemen and women, as well as police and firefighters, as we look forward to the Christmas season. 12. ADJOURNMENT Meeting adjourned at 8:14 p.m. Respectively Submitted, Katie Bruno, Council Secretary /City Clerk RESOLUTION NO 2015 -90 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Christopher J. Roberts (Hereinafter "Owner of Record "). Whereas, the owner of record is the legal owner of the real property located at 4801 Jefferson Street N.E., Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via regular mail to the owner of record on September 30, 2015. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. That on September 28, 2015, an inspection was conducted on the property listed above. Inspectors found violations. A compliance order was sent via regular mail to the owner at the address. 2. That on November 5, 2015, inspectors re- inspected the property listed above. Inspectors noted that violations remained uncorrected. A compliance order and statement of cause was mailed via regular mail to the owner listed in the property records. 3. That on November 17, 2015, inspectors re- inspected the property and found that violations remained uncorrected. IF 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: A. Shall repair, replace or remove damaged fence on north and east sides. 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL I. That the property located at 4801 Jefferson Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 4801 Jefferson Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. RESOLUTION 2015 -93 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of that certain property rental license held by Jordan Gall (Hereinafter "License Holder "). Whereas, license holder is the legal owner of the real property located at 3906 Tyler Street N.E. Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on November 9, 2015 of a public hearing to be held on November 23, 2015. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. That on September 10, 2015, inspectors for the City of Columbia Heights, inspected the property described above and noted violations. A compliance letter listing the violations was mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on October 13, 2015, inspectors for the City of Columbia Heights performed a re- inspection and 12 noted that violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 3. That on November 9, 2015, inspectors for the City of Columbia Heights checked records for this property and noted that the violations remained uncorrected 4. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Property Maintenance Code were found to exist, to -wit: a. Rental license violations (electrical connection and lighting) remain uncorrected. b. Reinspection fee remains unpaid. 5. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter 5A, Article III 5A.306 and 5A.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F14878 is hereby revoked. 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder. 3. All tenants shall remove themselves from the premises within 45 days from the first day of posting of this Order revoking the license as held by License Holder. RESOLUTION 2015 -94 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, the City Council has adopted a Seal Coat Program, and WHEREAS, pursuant to Resolution No. 2015 -82, a report has been prepared by the City Engineer with reference to the Program, and the following street(s): 0 local streets in Zone 7B that have not been rehabilitated under the street program WHEREAS, the report provides information regarding whether the proposed project is feasible, necessary and cost - effective, and Said report is hereby received by the City Council of Columbia Heights on November 23, 2015. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. The Council will consider the improvement of such streets in accordance with the report and the 13 assessment of abutting or benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $74,970. 2. A public hearing shall be held on such proposed improvement on the 1St day of February, 2016, in the City Council Chambers at 590 40th Avenue N.E. at 6:30 P.M. and the City Clerk shall give mailed and published notice of such hearing and improvement as required by law. RESOLUTION 2015 -95 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, the City Council of Columbia Heights is proposing to rehabilitate local streets in Zone 2 that have not been rehabilitated under the street program, and WHEREAS, Stinson Boulevard from 37th Avenue to north of 40th Avenue is part of Zone 2 scheduled for 2016, and WHEREAS, a Cooperative Agreement has been approved between the cities of Columbia Heights and St. Anthony that defines the responsibilities of each city for the project work, and WHEREAS, pursuant to Resolution No. 2015 -62, a report has been prepared by the City Engineer with reference to the Program, and the following street(s): • Stinson Boulevard Reconstruction from 37th Avenue to North of 40th Avenue WHEREAS, the report provides information regarding whether the proposed project is feasible, necessary and cost - effective, and Said report is hereby received by the City Council of Columbia Heights on November 23, 2015. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 2. The Council will consider the improvement of such streets in accordance with the report and the assessment of abutting or benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $1,036,080. 2. A public hearing shall be held on such proposed improvement on the 7th day of March, 2016, in the City Council Chambers at 590 40th Avenue N.E. at 6:30 P.M. and the City Clerk shall give mailed and published notice of such hearing and improvement as required by law. Ordinance No 1623 BEING AN ORDINANCE AMENDING CITY CODE OF 2005 RELATING TO THE FLOODPLAIN MANAGEMENT OVERLAY DISTRICT REQUIREMENTS WITHIN THE CITY OF COLUMBIA HEIGHTS 14 SUMMARY OF ORDINANCE NO. 1623 (A copy of the complete ordinance is available at City Hall) This Ordinance adopts a model Floodplain Ordinance, provided by the Minnesota Department of Natural Resources. This Ordinance regulates development in the flood hazard areas of Columbia Heights, Minnesota. The purpose of this Ordinance is to promote the public health, safety, and general welfare by minimizing losses and disruptions in flood hazard areas. This Ordinance addresses potential conflicts with other City Ordinances, delineates floodplain districts and establishes permitted uses and standards for each district, outlines land development standards, provides provisions for variances, regulates non - conformities and outlines penalties for violations. This is a summary of Ordinance No. 1623. A printed copy of the entire text of the Ordinance is available for inspection by any person during regular office hours at the office of the City Planner, or by standard or electronic mail. Ordinance No. 1623 was adopted by the City Council of Columbia Heights on November 23, 2015. 15 Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: Purpose of Meeting: CALL TO ORDER /ROLL CALL The meeting was called to order at 7:11 PM COLUMBIA HEIGHTS CITY COUNCIL December 7, 2015 7:00 PM (Following the EDA Meeting) Conference Room #1 WORKSESSION Present: Mayor Peterson, Councilmembers Murzyn Jr, Williams, Nawrocki and Schmitt Also Present: City Manager Walt Fehst, City Attorney Jim Hoeft, Finance Director Joe Kloiber, Community Development Director Joe Hogeboom, Police Chief Scott Nadeau, Police Captain Lenny Austin, Human Resources Director /Assistant to the City Manager Kelli Bourgeois, Council Secretary Katie Bruno 1. Discussion regarding Auto Moratorium / Proposed Development Community Development Director Joe Hogeboom reported the council recently adopted an Ordinance placing a six month moratorium on auto related businesses along Central Ave. Recently staff was approached by Venture Pass Partners, LLC inquiring about the site at Central Ave. & 47th Ave. Venture Pass would like to propose a Jiffy Lube service center to the north, and a retail pad to the south. Director Hogeboom introduced Dave Carland and Randy Rauwerdink from Venture Pass Partners, LLC. Mr. Carland noted the challenge with the area is its proximity to 1694, and the expectation of lower rent costs. Mr. Carland indicated that a Jiffy Lube would subsidize the project as well as making the project smaller; less space to lease. Mr. Carland noted they could construct the retail pad first, and the Jiffy Lube as a "phase 2 ", allowing time for the moratorium to expire. Director Hogeboom indicated the moratorium may not have to last the entire six months, staff can address issues sooner. Hogeboom also noted we will have controls in place through the site plan process to mitigate potential problems. Mayor Peterson stated he thinks the City should pursue the project. Councilmember Nawrocki commented that this is significantly smaller than the original plans for this site. Director Hogeboom indicated that the market has changed, and the larger -scale plans are no longer marketable. Councilmember Schmitt, Williams and Murzyn, Jr. were in favor of the proposal. Director Hogeboom indicated he will likely bring the proposed code changes to the council in early 2016. 2. Discussion regarding Predatory Offender Moratorium Police Chief Scott Nadeau explained that Columbia Heights has a high level of level 3 offenders, and is requesting the Council consider adopting an Emergency Ordinance regulating the residency location of predatory offenders. Minneapolis, Brooklyn Center and Hilltop have imposed residency limitations. Chief Nadeau also noted that the community has expressed safety concerns with the number of level 3 offenders that have moved to the City. The police department feels they have reached the saturation level recently. City Attorney Jim Hoeft reviewed the proposed Emergency Ordinance with the council, as well as the process for approving an Emergency Ordinance. By putting the Emergency Ordinance in place, this will give staff adequate time to study and research the issue. Mr. Hoeft explained that the ordinance will not affect those currently living in the City. 3. Discussion regarding 2016 Budget Finance Director Joe Kloiber explained that the gross levy has not changed. The change is due to less than expected fiscal disparities funds. It was explained that by cutting the budget, and using some LGA funds, the difference can be made up. Councilmember Nawrocki asked why there was a decrease in fiscal disparities. It was explained that the market value of homes throughout the city have increased, resulting in a lower subsidy. Director Kloiber explained the pattern tends to be a roller coaster, and will likely come back somewhat in the next few years. City Manager Fehst explained that the Council will need to take action on the item at their December meeting, or the property owners taxes will be higher than expected. Fehst commented that the council has been diligent in setting LGA monies aside for such a time as this. A chart was distributed showing various reductions and deferments that will help to bring the local taxpayer's portion back in line with the earlier anticipated amount. Many of these items only offer a one year deferment, if fiscal disparities do not increase, a more permanent solution will be looked at. Director Kloiber reported that in 2018 the City will be able to refinance the Public Safety building bonds at a lower rate, which will provide a longer term solution. Councilmember Nawrocki stated he would like to see more reductions, and fewer deferments. Director Kloiber indicated he will send an updated chart out, indicating the reductions and deferments. Meeting Adjourned at 8:53 PM Respectively Submitted, Katie Bruno, Council Secretary /City Clerk 17 PUBLIC ARTS COMMISSION MINUTES OF THE MEETING KEYES ROOM, MURZYN HALL Wednesday, August 12, 2015 6:30 PM "The Public Arts Commission's mission is to encourage and promote the arts to enrich the lives of citizens and visitors to the community. " The meeting was called to order at 6:34 PM by Chair Gretchen Nelson. Commission members present — Carrie Magnuson, Rita Nau, Gretchen Nelson, and Jennifer Tuder Commission members absent — Sarah Arneson, Betsy Jetson, Laura Palmer (alternate), and Erin Rominger Guests present — CHPAC Liaison Donna Schmitt Motion by Jen, seconded by Can e, to approve the minutes from the July 8, 2015 meeting. All ayes. MOTION PASSED. Old Business 1. Website • The Commission has looked at the PAC website and sent comments to Rita. Rita said the Directory list cannot be listed in alphabetical order unless the Commission decides to pay for this extra feature. • The "About" page still needs to be updated. Jen will sent a blurb to Rita to put on the website. • Rita would like to find a different photograph for the home page. • Rita commented that a few of the artists who submitted to the Directory have yet to submit photos of their work. • The Commission is shooting for an official release date of their website on September 9, 2015. The members hope to have a link to the city website by this time. • The Commission agreed that Katie Bruno, the City Clerk, should be emailed the logins and passwords for website access. • Rita will contact Joe Hogeboom about the website and answer any questions he has. 2. Directory of Local Artists • Gretchen reported there were no new entries to the Directory. PAC August 12, 2015 Meeting Minutes - 1 18 • Carrie said the Northeaster posted a community brief reminding artists to submit by September 1, 2015. • Rita added more folders to the Gmail account for archival storage and organization. I Sub - Committee Updates a. Policy • Jen talked about the policy she is putting together, emphasizing the fact that public art should meet community standards. The Commission discussed adding a Freedom of Expression clause to their policy, which would allow artists to express themselves and also bring diversity to the community. • The Commission agreed there needs to be a process for evaluating public art in Columbia Heights. • Donna talked about presenting a Comprehensive Plan to the City Council, one that would list our vision and goals for 10 -20 years from now. • The Commission agreed to come up with ideas for the Comprehensive Plan and discuss this further at the next meeting. • All feedback regarding the policies should be sent to Jen. b. Electronic Communications • The Commission decided to include discussion of the website, Directory, the Gmail account, and Facebook into the Electronic Communications section. c. Arts Center Proposal • There were no new updates. • Donna said there have been several inquiries into the current library space. • Donna said the Commission should follow up with the City Council in 4 -6 months. d. Budget Proposal • There were no new updates. • Donna said the City Council will begin looking over the City's budget proposals at the end of August. e. Grant - Murals • Gretchen reported she left a voicemail message for Liz Bray regarding a small mural project for the recreation department building. Gretchen will follow up with Liz before next meeting. • The Commission discussed the murals painted around the city by children through the Rec Department (i.e., City Hall). • Gretchen agreed to contact Tom Letness in the future regarding the bigger mural project. • The Commission will put together a request for proposals (with expectations and guidelines) when we are ready to pursue the Heights Theater mural. Also, there will need to be a discussion as to who will maintain any future public art. PAC August 12, 2015 Meeting Minutes - 2 19 • Donna suggested the City could have an "art bench competition" someday, referring to the Charlie Brown phenomenon from years past. Rita mentioned a street corner on Robbinsdale that is unique and has board games for people to play. It was also mentioned that St. Timothy's Church in Columbia Heights has a memorial bench. • Because of Erin Rominger's imminent resignation from the Commission, the PAC members decided to hold off on applying for the $5,000.00 small murals grant. Motion by Rita, seconded by Carrie, to postpone any art projects for now, including applying for the small murals grant. All ayes. MOTION PASSED. New Business 1. Jimmy Wetch (Pro Billiards) / Signage • Donna updated the Commission about the August 10, 2015 City Council meeting regarding Jimmy Wetch's Pro Billiards signage issue. At the meeting, the Council decided to table the issue indefinitely. • The Commission discussed briefly what the differences are between something being considered art and something that is advertising a business. A mural cannot advertise business. 2. Ron Parizek (NEMAA) / Heighten the Arts • Gretchen said Sarah contacted Ron Parizek and will report back at the September meeting. • Gretchen will contact Sarah to find out if Ron can attend one of the Commission's meeting, preferably the October one. • Gretchen hasn't heard from Diane Scully, but will follow up with her. 3. Arts Board Study • There were no new updates. 4. Strategic goal planning • The Commission will come up with a Comprehensive Plan (see Sub - Committee Updates, Policy.) • Donna suggested checking out the City's website to help with an outline for the Comprehensive Plan. Some of the items listed in the PAC's Policies and Procedures should be included in our Plan. 5. Facebook • This item will now be listed under Sub - Committee Updates, Electronic Communications. • The Commission agreed to hold off on creating a Facebook page for now. PAC August 12, 2015 Meeting N inutes - 3 20 The meeting was adjourned at 7:49 PM. Respectfully submitted, PAC Secretary Carrie Magnuson PAC August 12, 2015 Meeting Minutes - 4 21 0 CH COLUMBIA HEIGHTS Public Arts Commission Minutes of the Meeting Keyes Room, Murzyn Hall Wednesday, September 9, 2015 6:30 PM The meeting was called to order at 6:30 PM by Acting Chair Rita Nau. Commission members present: Sarah Arneson, Carrie Magnuson, and Rita Nau Commissioner members absent: Betsy Jetson, Gretchen Nelson, Laura Palmer (alternate), and Jen Tuder Guests present: PAC Liaison Donna Schmitt, Bryan Olson (Anoka County Record) Since there were not enough Commission members in attendance for a quorum, the August 12, 2015 meeting minutes will be approved at the October 14, 2015 meeting. Old Business 1. Sub - Committee Updates a. Grants - Murals • Sarah had a meeting with NEMAA's Executive Director, Alejandra Pelinka. The two talked about the success of Art -A -Whirl in Northeast Minneapolis, and discussed fundraising opportunities the Public Arts Commission could participate in. Sarah brought up having a craft /art activity at the Columbia Heights Jamboree, suggesting it could be an "open house" setup for a first time venture. Artists could share shifts during the event. Sarah and Alejandra discussed community public art guidelines, as well as ideas for mural projects (such as having local businesses donate supplies). Alejandra would like to come to a future Commission meeting for a Q &A session. • Sarah reported that she has received no response from Intermedia Arts. b. Policy • There was nothing new to report. c. Electronic Communications • Rita reported that the Artist Directory is up and running, but there is currently no link to the City website. • Rita received an email from Joe Hogeboom regarding the Commission's website. There are no issues the City has at this time concerning the website's format or design standards. • Gretchen and Rita will meet with Joe Hogeboom at a future time to discuss the website. Also, the City Council would like to have a work session with the Commission regarding mural guidelines. • Rita changed the photo on the website's front page to a brighter one. 22 City of Columbia Heights Public Arts Commission Minutes of the Meeting September 9, 2015 Page 2 • Rita has sent website links to Katie Bruno. d. Arts Center Proposal • There were no new updates. This item has been taken off the October agenda. e. Budget Proposal • There were no new updates. This item has been taken off the October agenda. 2. Ron Parizek (NEMAA) / October 2015 speaker? • The Commission will inquire about having Ron Parizek (NEMAA) speak atone of our meetings in either November, December, or January. New Business 1. PAC Members update • Erin Rominger has officially resigned from the Public Arts Commission. More discussion will be held at the October meeting. 2. Fundraising ideas • This item has been moved to the October agenda. 3. Comprehensive Plan / Strategic Goals • This item has been moved to the October agenda. 4. Mississippi Watershed Management Organization / Grants • Donna spoke about the Stewardship Fund Grant program. The Commission could apply for a grant if we are interested in a community water- themed art project. Donna volunteered to contact Tammy Schmitz, who lives in Columbia Heights, to help with the project. More discussion regarding this item will be held at the October meeting. The meeting was adjourned at 6:58 PM. Respectfully submitted, PAC Secretary Carrie Magnuson 23 CH COLUMBIA HEIGHTS Public Arts Commission Minutes of the Meeting Keyes Room, Murzyn Hall Wednesday, October 14, 2015 6:30 PM The meeting was called to order at 6:33 PM by Chair Gretchen Nelson. Commission members present: Betsy Jetson, Carrie Magnuson, and Gretchen Nelson Commissioner members absent: Sarah Arneson, Rita Nau, Laura Palmer (alternate), and Jen Tuder Guests present: PAC Liaison Donna Schmitt, Recreation Contact Liz Bray, Mayor Gary Peterson, and Bryan Olson (Anoka County Record) Since there were not enough Commission members in attendance for a quorum, the August 12, 2015 and September 9, 2015 meeting minutes will be approved at the November 10, 2015 meeting. Old Business Sub - Committee Updates a. Grants - Murals 1) Heights Theater Mural Project • Gretchen said the Commission has gone online and studied costs for hiring professional muralists. Gretchen said she has spoken to Tom Letness about the project and he is on board with it. • Mayor Peterson suggested having a painted mural with an area of white space for projection, which could be used for the "highlights" of Columbia Heights and showcasing upcoming events (message board). • The Commission agreed a dual mural (painted and electronic) would work nicely. • There was discussion about possible mural themes, including the history of Columbia Heights. • Gretchen said a muralist's rate could go up to $25,000.00. • The Commission agreed that guidelines for the muralist would need to be implemented, such as allowing volunteers to help with the project (high school artists, local artists) and having an "outline" on the mural wall. • Mayor Peterson said International Falls has an impressive 3 -D mural with a woman getting into a stagecoach. He also mentioned the 3 -D arches in a Robbinsdale mural. • The mayor suggested the Commission contact muralists and have them come up with proposals. 24 City of Columbia Heights Public Arts Commission Minutes of the Meeting October 14, 2015 Page 2 • Gretchen said there would have to be a 2 -to -1 match for grant funding. • Liz suggested having the school district involved. She said the mural would be a great way to welcome visitors to the city. • Donna said parameters need to be set for the mural project, such as space /dimensions, etc. • Mayor Peterson said he would like to see the muralists visit the Heights Theater site and offered to set up these visits. • The Commission agreed that pricing, quality, and willingness to work with children are key guidelines for hiring a muralist. • Liz suggested that Heighten the Arts might be interested in collaborating with the project. She said they did an amazing job with the City's Heritage Tower. • Donna suggested the Commission focus on the summer of 2017 for the mural's completion because the new library will be up and running by then. Mayor Peterson said the Commission should begin steps in the proposal process as soon as possible. • The Commission talked about getting a list of muralists. Liz said Diane Scully would be a good resource. • Donna said the projection spot could have many uses, such as having children's movies in the summer. Betsy said there is more flexibility with having the projection art. • The Commission briefly discussed having a mini -grant for the summer of 2016. • The Mayor's holiday kickoff will be held on Friday, November 20th. Liz asked the Commission if they would like to have a booth at the event. • The Commission agreed that having Columbia Heights residents draw their own murals on a roll of paper would be a great idea. Betsy said she would bring the roll of paper and will contact Liz about art supplies. 2) Mississippi Watershed Management Organization / Stewardship Fund Grant • Donna handed out information about the grant. • Donna said Tammy Schmitz would help the Commission with the grant. • The Commission agreed that we should focus on the MWMO grant in the spring of 2016. • The project needs to be water - themed. • Donna suggested Tammy come to the December 2015 or January 2016 meeting to discuss this. b. Policy • There was nothing new to report. c. Electronic Communications • Gretchen reported four new artists for the Directory of Local Artists; Caroline Woodruff is a muralist. There are 23 artists total. • A meeting with Joe Hogeboom still needs to be set up to talk about the website. 2. Ron Parizek (NEMAA) • There was nothing new to report. 25 City of Columbia Heights October 14, 2015 Public Arts Commission Minutes of the Meeting Page 3 New Business 1. PAC Members update • Erin Rominger has officially resigned from the Public Arts Commission. • Gretchen asked that the opening for a new Commissioner be listed on the City's cable channel. 2. Fundraising ideas The Commission expressed a desire to have an art fair during the Jamboree, possibly next summer. Donna said there is a plan to have a SACA- sponsored farmer's market in the library parking lot in the summer of 2016. Betsy talked about the differences between an informal art event (Art -A- Whirl) and a more structured one (farmer's market). Betsy suggested the Commission talk to both organizations. 3. Comprehensive Plan /Strategic Goals • This item has been taken off the agenda. 4. Heighten the Arts meeting • Gretchen said she attended last month's Heighten the Arts meeting, where Steph Novak, an art teacher, said the schools have guest artists speak in their classes. The Commission could volunteer for this opportunity. HTA is looking for volunteers to help with The Lion King musical (December 10 -12, 2015); help with costume design, makeup and stage sets would be appreciated. HTA is also looking for help with the African Heritage Choral Festival (May 2, 2016); they would like to feature Somalian artists, poetry readings, and any assistance with publicity for the event. • Gretchen said the Directory of Local Artists will be emailed about these events. • Gretchen will contact Diane Scully to get a list of the art teachers' email information. 5. Other • Betsy said the Columbia Heights Public Library is hosting a Family Art Day on October 24, 2015. • Donna said there will be an informal Brainstorming Meeting on October 17, 2015 (1 -2 PM) to talk about the vision for the Heights community. This meeting will be held at Murzyn Hall. The meeting was adjourned at 7:42 PM. Respectfully submitted, PAC Secretary Carrie Magnuson 26 CH COLUMBIA HEIGHTS Columbia Heights Public Library 820, 40th Avenue NE, Columbia Heights, MN 55421 -2996 • Ph: 763 - 706 -3690 • TDD: 763 - 706 -3692 COLUMBIA HEIGHTS PUBLIC LIBRARY Approved BOARD OF TRUSTEES 12/2/2015 MINUTES November 4, 2015 The meeting was called to order by Chair Patricia Sowada at 6:32 p.m. Members present were: Nancy Hoium, Steve Smith, Patricia Sowada, Catherine Vesley and Council Liaison Gary Peterson. Also present: Library Director Renee Dougherty and Recording Secretary Renee Rewitzer. Absent: Barbara Tantanella. The minutes of the October 7, 2015, Board meeting were approved as mailed. The bill list dated 10/7/2015 was reviewed. It was moved, seconded, and passed that the bills be paid. The bill list dated 10/21/2015 was reviewed. It was moved, seconded, and passed that the bills be paid. The November 2015 accounting was reviewed. Old Business: 1. Brianna Belanger was introduced to the Library Board. Brianna grew up in Hibbing, graduated from the University of Minnesota, and received her Masters of Library and Information Science from Simmons College. She has been a Youth Services Librarian at the Hennepin County Libraries, working most recently at Brookdale. She has also served as a teen and adult tech literacy coordinator at the Maplewood Library. Smith asked about the curriculum for a Library Science Master's degree. Bri replied she studied Reference, Management, Cataloging, Youth Services and Public Library management. Vesley asked what Bri specialized in and Bri said she specialized in Public Library management. Vesley also asked why did Bri choose to be a Children's Librarian and Bri replied she enjoyed seeing children get excited about books and reading. 2. The Foundation is currently inviting local businesses to make a financial gift to the new library. They are also working on another gift letter to send to individuals. The Foundation worked with the Mayor and HGA to develop the donor wall for the new library. It was decided that a donor's name would go on the wall with a minimum donation of $100.00. Tier 1 donors' names would be 1" tall, Tier 2 — 7/8" tall, Tier 3 — %" tall and Tier 4 - -5/8" tall. The words "Thank You' in numerous languages will be interspersed throughout the glass - paneled wall. 27 Columbia Heights Public Library Board of Trustees Minutes November 4, 2015 Page 2 3. The new library construction progress is four days ahead of schedule. A concrete beam will be poured around the outline of the library. Sewer and water lines are in. Vesley shared with Dougherty that there is federal money available for technology grants. Dougherty replied she will look into this opportunity. The Library Design Task Force (LDTF) and HGA have looked at furniture possibilities and fabric swatches. The color scheme will include greens, corals and burgundies of various hues. The shelves will be white with wood paneling on the ends; the carpet squares will be charcoal color. Dougherty and Jane Dedering are planning shelving placement and staff work station layouts. She also said that the new library will not look like any other library in the state. Sowada asked Peterson what will happen with the current library and he replied that Kevin Hanson will look at this building structurally. Currently the City does not have any plans for the site. Vesley said this building would be ideal for an art center. Sowada said the Sister Cities could use part of the building for their needs. 4. October Youth Read Down results: Twenty -five patrons ages 17 and younger read for at total of 1,005 minutes (16.75 hours) and the library waived $67.00 of fines. New Business: 1. Better World Books, an Indiana non - profit, offers library discards and surplus donations for sale on their website' returning 20% of the sale proceeds to the library. Items which they cannot sell will be donated to national and international literacy groups. The library sent fourteen boxes of books to Better World Books in October. Items from the Floor: 1. RFID tagging of the library collection s will allow patrons to use self- checkout, increase security on library materials such as DVDs, reduce repetitive stress injuries for library staff by eliminating the need to scan individual items, and provide more accurate collection inventory information. The Columbia Heights Library will use a joint powers clause in the bid which Bibliotheca, formerly 3M Library Systems, provide to Anoka County Library to implement RFID. The Foundation will be funding this project which includes the RFID tags, security gates, self -check stations, and staff equipment. 2. Marlene Moulton- Janssen announced her retirement effective December 30, 2015. Moulton- Janssen has been the Anoka County Library Director for ten years. 3. Peterson reminded the Board that Taste of Columbia Heights will be November 20 from 6:00 p.m. to 10:00 p.m. at Murzyn Hall. Ticket price per food sample is @2.00. 4. The Foundation movie fundraiser this year is scheduled for Saturday, December 12, at the Heights Theatre and will feature Tom Hanks in "The Polar Express" Musical entertainment begins at 1:00 p.m. with the movie following at 1:30 p.m. Tickets are $10.00. 5. Catherine Vesley shared information about a Roaring 20s Styles for Men and Women Exhibit at the Minnesota History Museum. There being no further business, the meeting was adjourned at 7:20 p.m. 28 Columbia Heights Public Library Board of Trustees Minutes Respectfully submitted, Renee J. Rewitzer Recording Secretary, Library Board of Trustees November 4, 2015 Page 3 The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights services, programs, and activities. Attachments: 29 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF OCTOBER 12, 2015 IN CONFERENCE ROOM 1 The meeting was called to order at 6:15 pm by Chair Peterson. Members Present: Bruce Nawrocki, Donna Schmitt, Gary Peterson, John Murzyn, Gerry Herringer, and Bobby Williams. Members Absent: Marlaine Szurek Staff Present: Walt Fehst, Joseph Hogeboom, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED 1. CONSENT ITEMS 1. Approve the Minutes from September 8 and September 21, 2015. 2. Approve the Financial Report and Payment of Bills for August 2015 on Resolution 2015 -21. Questions by Members: Nawrocki questioned a couple of items from the September 8a' minutes. He wanted more information about the developer refinancing the Tax Increment Revenue Bonds and what the tax impact would be for the City if this is done. Hogeboom told him if the two contracts are approved tonight, it will allow Dominium to move forward with the purchase. He said Dominium may refinance the TIF bonds to get a better interest rate which would generate more TIF funds for the project. Dominium would pay for any Attorney /Consultant fees to sort this out. Hogeboom said this would be discussed further later in the agenda. Motion by Williams, seconded by Murzyn, to waive the reading of Resolution 2015 -21 there being an ample amount of copies available to the public. All ayes. MOTIONPASSED. Motion by Williams, seconded by Murzyn, to approve the consent agenda as presented. All ayes. MOTION PASSED. EDA RESOLUTION 2015 -21 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENTS FOR AUGUST 2015 AND PAYMENT OF BILLS FOR THE MONTH OF AUGUST 2015. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and 30 EDA Minutes Page 2 October 12, 2015 WHEREAS, the financial statement for the month of August 2015 has been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to both form and accuracy; and WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financials statements are held by the City's Finance Department in a method outlined by the State of Minnesota's Records Retention Schedule, NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the check history as presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 12th day of October, 2015 MOTION BY: Williams SECONDED BY: Murzyn AYES: All ayes Chair Peterson then chose to address the Huset Park Development Contracts prior to the Public Hearing for The Lot Sales Program. BUSINESS ITEM 1. Second Amended and Restated Development Contract for Private Development at Huset Park- Resolution 2015 -23 and Resolution 2015 -24. Hogeboom reminded members that the original Development Agreement for the Huset Park area was approved in 2004. Due to the downturn in the economy and housing construction, the project was not completed and the remaining parcels went back to BNC Bank. Earlier this year, representatives from Dominium approached the Economic Development Authority (EDA) regarding Dominium's interest in acquiring the property at the northeast corner of University and 37th Avenues and constructing independent senior (55 +) apartments. The EDA was amenable to this proposal, and directed staff to work with Dominium to develop a detailed plan. 31 EDA Minutes Page 3 October 12, 2015 Later this summer, Dominium officials held an open house for the Huset Park neighborhoods, where they discussed the plans for the apartment and addressed resident concerns. In September, the EDA approved a set of Business Terms for the project. As a requirement of the project, the EDA must authorize the execution of the "Second Amended and Restated Contract for Private Development" between the City and the Developer. This document must then be approved by the City Council. A separate document has been drafted to address the "remnant parcel" which is located at the southeast corner of the Jefferson St. /Huset Parkway intersection. The remnant parcel is not part of this proposal; however, Dominium is acquiring the remnant parcel as part of the sale. The contract outlines specific requirements that the Developer will have to adhere to as part of the project. EDA Attorney Martha Ingram was present at the EDA meeting to address any questions or concerns that Commissioners had regarding the proposed contract. Hogeboom stated that if approved, Dominium intends to close on the sale of the property in November and begin site work shortly thereafter. Staff recommends approval of the Second Amended and Restated Development Contract for Private Development by and between the Columbia Heights Economic Development Authority, the City of Columbia Heights and Columbia Heights Leased Housing Associates I, LLLP for both the Redeveloper Parcels and the Remnant Parcel. Copies of the documents were given to the members for their review. Martha Ingram told members that the existing Development Agreement was separated to address the two remaining parcels individually, and then was fine tuned to make it pertinent to this project. Since there are no plans for the remnant piece at this time, the plan for 80+ units of cooperative senior living remains the same, but does allow an extension of the timeframe whereby development of that piece would need to begin by 2020. Realistically, that particular plan may not happen, but the Development Agreement for that piece would have to be amended and approved at a later time if an interested party comes forward with a different plan. Questions by members: Nawrocki asked what use was approved in the original Development Agreement. Hogeboom told him there were actually two parts to the large parcel Dominium is looking to now develop. The northern section would have been for additional townhouses and the southern part was approved for mixed use. Ingram told members that the new contracts do not give any new TIF assistance and that this contract will eventually generate more TIF funds. She also stated that it would not extend the TIF District timeline. 32 EDA Minutes Page 4 October 12, 2015 Herringer asked Dominium if they create a separate LLP for each project. Ron Mehl from Dominium told him they do create a separate entity for each development project for liability and borrowing reasons. All the LLP's are still under the Dominium umbrella. Schmitt asked about the blank dates in the documents (Section 4.3) provided to the members in the agenda. Ingram told her those dates have since been agreed to. Construction on the small round- about parcel must commence by 2020 and be completed by 2022 unless modified at a later time. A resident of the townhomes lives near the subject property being developed. She is concerned about traffic congestion, dirt containment, soils pollution, and safety issues during construction. Hogeboom addressed some of her concerns. He explained the location of the building and access points have been modified from the original proposal. There will now be one access point off Huset Pkwy to the parking lot and parking garage, and there will be sidewalks and trails connecting the site to other locations for safe pedestrian traffic. Hogeboom encouraged her to stay for the City Council meeting so she could see the Site Plan being considered for this development. Ron Mehl also told those present that environmental studies have been done and there is not really a concern regarding pollution on this site since a lot of remediation work has already been done. He said it is their policy to have security and soils containment fencing present around the site during construction and that they usually sweep the streets on a weekly basis. Schmitt asked if park dedication would be paid on the remnant site at this time. Hogeboom said the park dedication fees would be paid at the time that site is developed. He told members that a separate planning contract for the new apartment building site will come to them later that will address the costs for storm water, parking lot, park dedication, sidewalks, etc. Motion by Williams, seconded by Herringer; to waive the reading of Resolution 2015 -23, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Williams, seconded by Herringer, to adopt Resolution 2015 -23, Resolution Approving a Second Amended and Restated Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights, and Columbia Heights Leased Housing Associates I, LLLP fog° the "Redeveloper Parcels " at Huset Park Senior Living. All ayes. MOTIONPASSED. Motion by Williams, seconded by Herringer, to waive the reading of Resolution 2015 -24, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Williams, seconded by Herringer, to adopt Resolution 2015 -23, Resolution Approving a Second Amended and Restated Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights, and Columbia Heights Leased Housing Associates I, LLLP for the "Remnant Parcel" at Huset Park Senior Living. All ayes. MOTIONPASSED. 33 EDA Minutes Page 5 October 12, 2015 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-23 RESOLUTION APPROVING A SECOND AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF COLUMBIA HEIGHTS AND COLUMBIA HEIGHTS LEASED HOUSING ASSOCIATES I, LLLP BE IT RESOLVED By the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority ( "Authority ") as follows: Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority ( "Authority ") has detennined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ( "EDA Act "), and is currently administering the Downtown CBD Redevelopment Project ( "Redevelopment Project ") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ( "HRA Act "). 1.02. The Authority, the City of Columbia Heights (the "City "), and Huset Park Development Corporation (the "Original Developer ") previously entered into a Contract for Private Redevelopment dated as of October 25, 2004, amended and restated in its entirety by an Amended and Restated Contract for Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment thereto dated as of June 16, 2008, a Second Amendment thereto dated as of February 9, 2009, a Third Amendment thereto dated as of September 28, 2009 (subsequent to which BNC National Bank ( "BNC ") succeeded in interest to the Original Developer), a Fourth Amendment thereto dated as of November 21, 2011, a Fifth Amendment thereto dated as of April 2013, and a Sixth Amendment thereto dated as of June 2, 2014 (together, the "Original Contract ") regarding redevelopment of certain property within the Redevelopment Project in the area known as Huset Park (the "Redevelopment Property"). 1.03. A portion of the Redevelopment Property (the "Redeveloper Parcels ") has not been developed as contemplated in the Original Contract, and BNC proposes to convey the Redeveloper Parcels to Columbia Heights Leased Housing Associates I, LLLP (the "Redeveloper ") and to assign the Original Contract to the Redeveloper as to such Redeveloper Parcels. 1.04. The Authority, the City and the Redeveloper have proposed to enter into a Second Amended and Restated Contract for Private Redevelopment (the "Contract "), setting forth the terms and conditions of redevelopment of the Redeveloper Parcels. 1.05. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. Authority A pproval; Further Proceedings. 2.01. The Authority approves the assignment of the Original Contract to the Redeveloper as to the Redeveloper Parcels. 34 EDA Minutes Page 6 October 12, 2015 2.02. The Contract as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.03. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 12th day of October, 2015. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-24 RESOLUTION APPROVING A SECOND AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF COLUMBIA HEIGHTS AND COLUMBIA HEIGHTS LEASED HOUSING ASSOCIATES H, LLLP BE IT RESOLVED By the Board of Commissioners ('Board ") of the Columbia Heights Economic Development Authority ( "Authority ") as follows: Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority ( "Authority ") has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ( "EDA Act "), and is currently administering the Downtown CBD Redevelopment Project ( "Redevelopment Project ") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ( "HRA Act "). 1.02. The Authority, the City of Columbia Heights (the "City "), and Huset Park Development Corporation (the "Original Developer ") previously entered into a Contract for Private Redevelopment dated as of October 25, 2004, amended and restated in its entirety by an Amended and Restated Contract for Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment thereto dated as of June 16, 2008, a Second Amendment thereto dated as of February 9, 2009, a Third Amendment thereto dated as of September 28, 2009 (subsequent to which BNC National Bank ( "BNC ") succeeded in interest to the Original Developer), a Fourth Amendment thereto dated as of November 21, 2011, a Fifth Amendment thereto dated as of April 2013, and a Sixth Amendment thereto dated as of June 2, 2014 (together, the "Original Contract ") regarding redevelopment of certain property within the Redevelopment Project in the area known as Huset Park (the "Redevelopment Property"). 1.03. A portion of the Redevelopment Property (the "Remnant Parcel ") has not been developed as contemplated in the Original Contract, and BNC proposes to convey the Remnant Parcel to Columbia Heights Leased Housing Associates II, LLLP (the "Redeveloper ") and to assign the Original Contract to the Redeveloper as to such Remnant Parcel. 35 EDA Minutes Page 7 October 12, 2015 1.04. The Authority, the City and the Redeveloper have proposed to enter into a Second Amended and Restated Contract for Private Redevelopment (the "Contract "), setting forth the teens and conditions of redevelopment of the Remnant Parcel. 1.05. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. Authority Approval, Further Proceedings. 2.01. The Authority approves the assignment of the Original Contract to the Redeveloper as to the Remnant Parcel. 2.02. The Contract as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.03. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 12"' day of October, 2015. 1. Authorize Single Family Home Lot Sales Program — Resolution 2015 -22 In September, the Economic Development Authority (EDA) created the Single Family Home Lot Sales Program. Before lots in the program can be advertised for sale, a public hearing must be held to authorize the sale prices of the lots. Tonight's hearing will address the following lots: 4606 Polk Street NE 4636 Polk Street NE 4641 Tyler Street NE 4600 Polk Street NE 4648 Polk Street NE #1 4618 Polk Street NE PID 25- 30 -24 -33 -0030 PID 25- 30 -24 -33 -0025 PID 25- 30 -24 -33 -0038 PID 25- 30 -24 -33 -0031 PID 25- 30 -24 -33 -0023 PID 25- 30 -24 -33 -0028 Hogeboom told members that the 30 foot lot was removed from the list and staff has contacted the neighboring properties to see if they would be interested in purchasing that lot. He reminded members that minimum criteria have already been established for the construction of homes for these lots. Hogeboom said staff reviewed programs run by other cities and recommends listing the lots for the EMV set by Anoka County. He explained that a full price offer or higher would be accepted. If more than one offer is received the EDA could meet with the builders and decide which one would be awarded the sale. 36 EDA Minutes Page 8 October 12, 2015 Staff recommends adoption of Resolution 2015 -22, authorizing the sale of the abovementioned lots included in the Single Family Home Lot Sales Program. Questions /comments from members: Schmitt said she understands listing them at the EMV, but noted that the lot on 43rd and Reservoir Blvd sold for a similar price and is still vacant. Hogeboom said that lot has a pre - determined builder which reduces the number of interested parties. He said he thinks the lots will sell since a buyer could use whatever builder they want as long as they meet the minimum requirements, or a builder could build a home on speculation. Schmitt asked how we would handle an offer that is under the asking price. Hogeboom said it could be brought to the EDA for consideration. Peterson asked if there is a timeframe we are working with. Hogeboom said it is open ended at this time and that staff would have discretion to deny an offer or to bring it back to the EDA. He told the members if they wished to set more parameters, they can do so. Peterson asked that any offers that come in be brought to the EDA at the next available meeting for consideration, unless a full price offer is received, whereby staff can accept it and pull it off the list. Nawrocki agreed with using the EMV as the listing price. Public Hearing Opened. No one wished to speak on this matter. Public Hearing Closed. Motion by Williams, seconded by Murzyn, to waive the reading of Resolution 2015 -22, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Williams, seconded by Murzyn, to adopt Resolution 2015 -22, a Resolution Approving Plan for Conveyance of Certain Lots Owned by the Economic Development Authority. All ayes. MOTIONPASSED. 37 EDA Minutes Page 9 October 12, 2015 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-022 RESOLUTION APPROVING PLAN FOR CONVEYANCE OF CERTAIN LOTS OWNED BY THE ECONONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED By the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority ( "Authority ") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ( "EDA Act "), and is currently administering the Downtown CBD Redevelopment Project ( "Redevelopment Project ") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ( "HRA Act "). 1.02. Within the Redevelopment Project, the Authority has acquired parcels suitable for the construction of single- family homes, which parcels are described in Exhibit A hereto (the "Subject Parcels "). 1.03. The Authority intends to convey the Subject Parcels to contractors that will construct homes for sale to owner - occupants, and to that end has created its Single Family Home Lot Sales Program, and approved preliminary guidelines for this program (the "Guidelines ") on September 8, 2015. 1.04. On October 6, 2015, the City Planning Commission found by resolution that the conveyance of the Subject Parcels is consistent with the City's comprehensive plan and furthers the housing goals of the plan. On this date, the Board held a duly noticed public hearing regarding the plan for sale of the Subject Parcels. 1.05. The Board has determined that sale of the Subject Parcels as described in this resolution, pursuant to the Guidelines, is in the best interest of the City and its residents. Section 2. Sale of Subject Parcels Approved; Further Proceedings. 2.01. The Board approves the plan to sell the Subject Parcels in accordance with the Guidelines. 2.02. The Board hereby ratifies approval of the Guidelines and the insertion of sale prices for each of the Subject Parcels. 2.03. Authority staff and consultants are authorized and directed to negotiate sales of the Subject Parcels with qualified contractors, subject to the condition that before the EDA is obligated to sell any Subject Parcel, the Board shall approve a purchase and redevelopment agreement with the buyer of that parcel (as described in the Guidelines). 38 EDA Minutes Page 10 October 12, 2015 Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 12th day of October, 2015. President ATTEST: Secretary Administrative Report It was noted that the next meeting will be Monday, November 2nd at 6:30 in Conference Room 1. The meeting was adjourned at 7:03 pm. Respectfully submitted, Shelley Hanson Secretary 39 OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS TRAFFIC COMMISSION MONDAY, AUGUST 3, 2015 CALL TO ORDER The meeting was called to order by Chairperson Ed Carlson at 5:30 p.m. ROLL CALL Members present: Commissioners Ed Carlson, Leonard Olson, and Kevin Doty Members absent: Commissioners Brian Clerkin and Charles Tyler Staff Present: Kathy Young, Assistant City Engineer Lenny Austin, Police Captain Sue Schmidtbauer, Public Works Secretary Council Liaison: Donna Schmitt (absent) APPROVAL OF MINUTES Motion by Doty, seconded by Olson, to approve the minutes of July 6, 2015, as presented. Motion passed. OLD BUSINESS A. REQUEST TO REMOVE YIELD SIGN AND INSTALL STOP SIGN ON UPLAND CREST AT HEIGHTS DRIVE Ms. Bonita Entsminger is requesting the YIELD sign on Upland Crest be changed to a STOP sign at the intersection with Heights Drive. The concern is that drivers are running the yield sign and presenting a danger to vehicles on Heights Drive. Heights Drive is curved south of the intersection and straight north of the intersection. Upland Crest intersects Heights Drive at an angle. Visibility for both streets north of the intersection is good. Visibility south of the intersection is limited somewhat with the combination of the curve in Heights Drive, the angle of Upland Crest, and area landscaping. Each leg has a yellow PLAYGROUND sign with 20 MPH plaques (advisory). There were two accidents in May. In both accidents southbound drivers did not slow down at the intersection, failed to negotiate the curve, and one hit a vehicle parked on Heights Drive and one hit a tree. Prior to that there were no accidents. However, Ms. Entsminger stated that over the past 10 years there have been three cars that ended up in her yard. These accidents were not reported. The Police Department monitored the volume of speed and traffic at this intersection for several days. The average speed was below 25 mph. The existing YIELD sign is 30 ". Young stated one option is to install a larger yield sign. The next largest sign is 36" but she doesn't know if there would be much of a difference once it is installed and up in the air. She also suggested installing a red reflective strip in the post to draw more attention to the yield sign; we do have this on some stop signs. Ms. Entsminger asked if the reflective strips could also be placed on the three playground signs. Young stated we do have yellow posts that could be used for the playground signs. Carlson and Doty feel a larger yield sign with a reflective post should be installed as well as yellow reflective posts on the playground signs. Doty asked about the results of the speed trailer. Austin stated that only 4% of vehicles exceeded the 30 mph speed limit and by only 1 -2 miles. The 20 mph is the recommended speed; the actual posted speed is 30 mph. Mrs. Entsminger stated she is baffled that drivers 40 can approach a playground and not care. Carlson likes the idea of the bigger sign and reflective red post. Motion by Olson, seconded by Doty to deny the request to remove the YIELD sign and install a STOP sign on Upland Crest at Heights Drive based on the low traffic volume and infrequent accidents, but do recommend a larger YIELD sign and reflective post be installed. Motion carried. B. REQUEST FOR STOP SIGN AT LINCOLN TERRACE AND PIERCE TERRACE Ms. Layla Rismoen has requested stop signs be installed at the intersection of Lincoln Terrace and Pierce Terrace. The concern is the speed of vehicles and the number of children in the area. Pierce and Lincoln is a "T" intersection with through traffic on Pierce Terrace. Visibility at the intersection is good. The Police Department monitored the volume of speed and traffic at intersections of Lincoln Terrace /Johnson Street and Pierce Terrace /Lincoln Terrace for several days. The average speed was below 20 mph. Ms. Rismoen is unable to be here tonight but is hoping we will put in a stop sign. Olson stated that again, based on traffic volume and speed trailer information, this is a sporadic issue. The accident records for the last five years at Lincoln Terrace and Pierce Terrace, and Lincoln Terrace and Johnson Street showed only one accident, which occurred last February. Olson feels there is nothing to substantiate an issue at this intersection. Motion by Olson, seconded by Doty to deny the request to install any type of signage at that intersection of Lincoln Terrace and Pierce Terrace based on data from the Police Department and the fact that there has been only one accident. Motion carved. OTHER OLD BUSINESS None NEW BUSINESS None OTHER NEW BUSINESS Captain Austin has been meeting with the school district about parking on 49th Avenue in regards to the middle school and Valley View. He stated parking is always an issue; there are a huge number of parents that drop off their children along with bus traffic —the police are there in the a.m. and p.m. directing traffic. School start and finish times have changed over the years but the signs have not been updated. The school district is asking if we can change the no parking sign times to read 8:30 a.m. to 2:00 p.m. vs. 8:00 a.m. to 4:00 p.m. This should help with pickup and drop off for parents and with traffic control. School lets out at 2:20. At 2:01 and after parents would be able to get in line to pick up their kids without being in violation. Young questioned if we even need no parking signs if the intent is for the parents to be able to park and pick up their kids. Austin thinks the concern is staff parking on the street. Olson suggested loading or unloading only signs vs. no parking signs. Carlson feels that sign will be greatly violated. He feels if we take the no parking signs out people will be parking all day long. Doty and Olson feel we should leave the no parking signs and add loading /unloading only. The signs currently read no parking or stopping 8:00 a.m. to 4:00 p.m. on school days. Two houses on the north side are affected by the no parking. The consensus with the school district was to change the no parking time on both sides of the street so they are the same, but Austin feels we can do the loading /unloading only. Doty is okay with no parking on the north side so kids can't cross the street — Austin stated parents are going to violate that anyway. However, parent can currently park along the north side of the street except for about 50 feet where no parking is posted in front of the two houses. Young suggested having the sign say no parking and removing the no stopping. Austin feels the sign needs to be clearer so will need loading /unloading only or child drop off but if we do 8:30 to 2:00 p.m. we would not need drop off only. Motion by Olson, seconded by Carlson to change the time on the no parking sign located on the south side of 49th Avenue to 41 read from 8:30 a.m. to 2:00 p.m. Doty abstained. The parking sign on the north side will be left as is until we find out more. Young received a telephone call regarding the intersection of 45th Avenue and 5th Street. Traffic currently stops on 5th Street; the resident would like to switch it so traffic stops on 45th Avenue. Accident records show there have only been two accidents in the last five years. Olson would like to leave this alone. The phone call was an inquiry only; the resident did not want to make a formal request. Young told the resident she would check the accident records and let her know. REPORTS A. CITY ENGINEER Kathy has been in communication with MnDOT regarding 53rd and Central Avenues. Currently MnDOT only has peak hour information from 2009 and 2012 and there has not been much change in that three year time period as far as turning movements. If they count it again in 2015 we will not have that information for a while. Olson stated Starbucks is going in where the gas station used to be plus Embers is still there as well as Tires Plus. Once the other new businesses go in traffic will be a mess. Kathy is hoping that most people going to the old blockbuster site will turn right onto Central Avenue but concurs Starbucks will be a mess, especially with Embers and Target. Kathy will call the City of Fridley to see if they have done any type of traffic study. Olson stated currently the eastbound green light to go to the freeway is way too short so drivers constantly run the red light. One minute more on the green turn signal would be good or traffic sensors would help. B. POLICE None C. COMMISSIONERS Doty questioned the three accidents in Ms. Entsminger's yard. Austin stated he would have to check it out, but it is over a 10 year period so may not recorded. ADJOURNMENT Motion by Olson, seconded by Doty, to adjourn the meeting at 6:10 p.m. Motion carried. Respectfully submitted, Sue Schmidtbauer Public Works Secretary 42 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7C MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Consideration of Resolution canceling the City Council meeting scheduled for December 8, 2 15 DEPARTMENT: Administration CITY MANAGER'S APPROVAL: BY /DATE: Katie Bruno BY /DATE: BACKGROUND: The second scheduled City Council meeting in December is on Monday, December 28, 2015. In the past the Council has chosen to cancel the second meeting in December. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution No. 2015 -96, there being ample copies available to the public. MOTION: Move to adopt Resolution 2015 -96, being a Resolution canceling the City Council meeting scheduled for December 28, 2015. ATTACHMENTS: Resolution 2015 -96 43 Canceling 12 -28 -2015 meeting RESOLUTION NO. 2015 -96 BEING A RESOLUTION CANCELING THE CITY OF COLUMBIA HEIGHTS REGULAR CITY COUNCIL MEETING SCHEDULED FOR MONDAY DECEMBER 28, 2015 WHEREAS: The City of Columbia Heights has historically cancelled the second meeting in December; and WHEREAS: The City Council has agreed to cancel the regular Council meeting scheduled for Monday, December 28, 2015; NOW, THEREFORE, BE IT RESOLVED, that all interested parties be advised of this change. Passed this 14th day of December, 2015 Offered by: Second by: Roll Call Mayor Gary L. Peterson Attest: Katie Bruno City Clerk/Council Secretary 44 CH, COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7D MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Volunteer Firefighter Relief Association Bylaw Change DEPARTMENT: Fire CITY MANAGER'S APPR VAL:�,,; BY /DATE: Gary Gorman BY /DATE: f /� Paid -on -Call Firefighters accrue an annual pension based on service months in a calendar year. Firefighters have to have a minimum of 60 service months (5 years) in order to become minimally vested. If a firefighter leaves the Fire Department prior to accruing 60 months, their account is held for five years and then redistributed. Recently, we have had firefighters leave the Fire Department after only a few months of service. Their accounts, based on a few service months, will continue to earn minimal interest but is also charged fund maintenance fees that are distributed equally across all accounts. For the first time we now have accounts that will go down to a zero balance, or a negative balance, prior to reaching five years. The State Auditor's Office has advised the Relief Association to add language to the bylaws that addresses this situation. The Relief Association Board of Trustees met and approved the proposed new language of Article IV, Section 4.6 of Appendix D. First Reading of the proposed language to the full membership was held on November 16, 2015. Second Reading and approval of the full membership was held November 23, 2015. STAFF RECOMMENDATION: Approve the addition of Article IV, Section 4.6 to Appendix D of the Columbia Heights Volunteer Firefighters Relief Association Bylaws. RECOMMENDED MOTION(S): Move to approve the addition of Article IV, Section 4.6 to Appendix D of the Columbia Heights Volunteer Firefighters Relief Association Bylaws. ATTACHMENTS: Article IV, Section 4.6 of Appendix D. 45 Section 5.9 is approved by the Board. Distribution shall not be made as of a Valuation Date that is earlier than the date the Board approves the Participant's benefit payment request. 4.5 Valuation of Special Fund and Account Statements to Participants. A Valuation of the Special Fund and the Account of each Participant shall be made as of each Valuation Date. At least annually, the Relief Association will provide each Participant with a statement of the Participant's Account balance as of the most recent Valuation Date and provide to the Participant upon request their vested percentage and any Account transactions such as distributions, contributions, forfeitures and plan expenses that occurred during the Plan Year. 4.6 Negative Value Accounts. For an Inactive Member's Account that has a negative Valuation when determined at the Valuation Date, the Account shall be set to a zero value for the duration of the Inactive Member's status. No Allocations, Beneficial Interest adjustment for earnings, or adjustment for expenses shall be credited to the Inactive Member's Account. Once an Inactive Member's Account is set to zero and that member is notified through an annual statement for the year when that Valuation was determined that member shall no longer receive an annual statement. However, the Account shall still be maintained in the database until the scheduled forfeiture date of the Inactive Member. If an Inactive Member were to return to Active Service after the valuation of said Member's Account was set to zero that Participan t shall accrue Benefits based on the Valuation of the Participant's Account upon return to Active Service. ARTICLE V BENEFITS 5.1 Retirement Benefit. (a) Eligibility. To be eligible to receive a Retirement Benefit a Participant must satisfy each of the following requirements: (i) Have retired or ceased Active Service with the Fire Department; (ii) Be at least 50 years of age; (iii) Have been a Volunteer Firefighter in the Fire Department; (iv) Have been a member in the Relief Association; and (v) Have the minimum Years of Active Service required for a non - forfeitable interest (vested) in the Participant's Accrued Benefit. (b) Amount. If so provided in Section 3.2, a Participant's Retirement Benefit shall be determined as follows: Account balance of the multiplied Vesting percentage for Participant by completed Years of Active Service D -7 46 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7E MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Transfer of Funds to Fire Department Budget DEPARTMENT: Fire CITY MANAGER'S APPROVAL: BY /DATE: Gary Gorman BY /DATE: December 14, 2015 The Minnesota Board of Firefighter Training and Education (MBFTE) provide reimbursements of costs associated with firefighter training and certification. The funds are appropriated by the State Legislature from the Fire Safety Account and are dispersed through an application process. $7350.79 was reimbursed this year. The Minnesota Emergency Medical Services Regulatory Board (EMSRB) reimburses volunteer ambulance services for part of training costs to maintain minimum emergency medical certifications of ambulance service staff. The training reimbursement is dispersed through an application process. $875.00 Columbia Heights Fire is part of a County wide Fire Recruitment and Retention Grant from FEMA. The grant will reimburse for costs associated with recruiting new firefighters and training them to minimum standards. $15,350.00 was reimbursed for personal protective equipment. Anoka County Emergency Management reimburses local governments for training activities and equipment. $724.99 was reimbursed for training. The State of Minnesota provides funding on an annual basis for volunteer firefighter pensions. The funding is distributed to the City, which then passes it on to the Fire Department Volunteer Relief Association. This funding is a budgeted item in the Fire budget but the amount changes each year. An adjustment is needed for the Fire budget to match the amount received in 2015. A difference of $680.97 above the budgeted amount was distributed. Total of reimbursements is $24,981.75. STAFF RECOMMENDATION: Approve the transfer of reimbursed funds from the General Fund to the Fire Department Budget RECOMMENDED MOTION(S): Move to approve the transfer of $24.981.75 from the General Fund to the Fire Department budget. ATTACHMENTS: None I-fi CH COLUhY6[j1 HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7F MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Authorize Mayor and City Manager to Enter into Contract for Police Service with the City of Hilltop DEPARTMENT: Police CITY MANAGER'S APPROV L: BY /DATE: Scott Nadeau ecember 7, 2015 BY /DATE: ` 5 / V BACKGROUND: The Police Department has been involved in discussions with the City of Hilltop reference continuation of the current contract for Police service from the City of Columbia Heights. The proposed contract is for three years, 2016 through 2018, and includes increases of 2.5% for 2016 and 2017, and 3.0% for 2018. With the exception of these increases, there were no other changes to the contract. As in the past, the payments will be made on a twice - yearly basis, in January and July. The Hilltop City Council has reviewed and approved the contract. STAFF RECOMMENDATION: It is the recommendation of the Police Chief that the Council approve the Police Contract with the City of Hilltop through December 31, 2018, at the rates specified in the attached service contract. RECOMMENDED MOTION(S): MOTION: Move to authorize the Mayor and the City Manager to enter into a Police Service Contract with the City of Hilltop starting January 1, 2016 and extending through December 31, 2018 at the rates specified in the contract. ATTACHMENTS: Contract for Police Services with the City of Hilltop 2016 -2018 48 JOINT AGREEMENT AND CONTRACT BETWEEN THE CITY OF COLUMBIA HEIGHTS AND THE CITY OF HILLTOP FOR POLICE SERVICES This agreement made and entered into by and between the City of Columbia Heights, hereinafter referred to as "Columbia Heights" and the City of Hilltop, hereinafter referred to as "Hilltop;" WITNESSETH: WHEREAS, Columbia Heights presently has a Police Department; and WHEREAS, Hilltop has discontinued its police department and has contracted for police services with Columbia Heights in past years. THEREFORE, it is mutually agreed: SECTION I That Columbia Heights shall furnish to Hilltop police protection to the same extent as is afforded to Columbia Heights by the Police Department of Columbia Heights. Hilltop. SECTION II That Columbia Heights shall patrol the streets and answer all calls for police protection in SECTION III That Columbia Heights police officers shall investigate crimes, make arrests, charge criminal activity and issue traffic and ordinance violation tickets and maintain a record of the same similar to the records kept by Columbia Heights, except that the records prepared for Hilltop shall be made available to Hilltop officials at any time, and upon termination of this Agreement, shall be delivered to Hilltop. Availability of records pursuant to this section shall be subject to the limitations of the Government Data Practices Act. SECTION IV That Hilltop shall, at the time of the authorization for the execution of this Agreement, adopt a resolution empowering and authorizing the police officers of Columbia Heights to have the power of arrest in Hilltop and deliver to Columbia Heights a certified copy of said resolution. SECTION V That Columbia Heights shall furnish to the Hilltop City Council a monthly report in writing. Said report shall be in such reasonable detail as requested by said Hilltop Council. 49 SECTION VI That as and for compensation, Hilltop shall pay to Columbia Heights for police patrol the following amounts covering the periods corresponding thereto as described below, to -wit: January 1, 2016, through December 31, 2016 $238,309.42 January 1, 2017, through December 31, 2017 $244,267.15 January 1, 2018, through December 31, 2018 $251,595.16 SECTION VII That the contract is for a term of three years beginning January 1, 2016, and ending December 31, 2018. Either party may terminate this Agreement effective the anniversary date of January 1 only upon material breach by the other party of the terms of this agreement and only upon five months' written notice to the other party, except as follows: That Columbia Heights may terminate this Agreement upon forty -five (45) days' written notice when any semi - annual payment required by Hilltop has not been received by Columbia Heights during normal business hours thirty (30) calendar days after July 31 and after December 31, respectively. Payments made thirty (3 0) days after July 31 and December 31, respectively, but prior to the forty -five (45) days' notice of cancellation, shall void the cancellation. Should substantial and material changes in conditions occur which are beyond the control of either Columbia Heights or Hilltop such that performance by Columbia Heights or Hilltop becomes impossible, then this Agreement can be terminated by Columbia Heights or Hilltop upon five (5) months' written notice by either city. SECTION VIII That Hilltop shall pay the contract compensation as follows: January 1, 2016 July 1, 2016 January 1, 2017 July 1, 2017 January 1, 2018 July 1, 2018 $119,154.71 $119,154.71 $122,133.57 $122,133.57 $125,797.58 $125,797.58 Payments made after the due date shall bear interest at the rate of 8% on the delinquent balance until paid. SECTION_IX That Hilltop shall pay the costs of court appearances of any police officers that are made as a part of their police duties for Hilltop. Hilltop shall render such payment upon receipt of a statement from Columbia Heights for said court appearance cost pursuant to the pay schedule for such service in Columbia Heights. If said payment is not made within forty -five (45) days of delivery of the invoice, the amount due shall be subject to 8% interest until paid. 50 SECTION X That Hilltop shall pay Columbia Heights the sum of $300.00 for each liquor or beer license investigation requested by Hilltop or required by law. SECTION XI That Hilltop shall indemnify the Columbia Heights and hold it harmless from all claims, actions, suits, proceedings, costs, expenses, damages, and liabilities arising out of police services furnished by Columbia Heights to Hilltop. However, such indemnification liability of Hilltop to Columbia Heights shall specifically exclude workers' compensation claims, motor vehicle no- fault claims (PIP), health and medical care costs for Columbia Heights employees. Hilltop has obtained insurance coverage from LMCIT to cover this contractual liability. Hilltop's liability to Columbia Heights shall be limited to the coverage afforded by this insurance policy, except that the $10,000.00 deductible provision of the policy shall not apply to Hilltop's responsibility to indemnify Columbia Heights. Hilltop shall name Columbia Heights as a certificate holder on said insurance policy, and the policy shall bear a provision that requires that insurer give Columbia Heights not less than thirty (30) days' written notice of termination, cancellation, or any change in coverage under the policy. The cancellation provision may not bear a disclaimer limiting the obligation of the insurer to only "endeavor" to give notice and may not contain a disclaimer that the insurer shall bear no responsibility by failing to provide such notice. Columbia Heights shall have the right to examine and inspect any policies of insurance issued to cover Hilltop's contractual liability established by this Agreement, including the first policy to be issued hereunder. Columbia Heights shall further have the right to demand reasonable assurances from Hilltop's insurers that Hilltop's insurers will not attempt to invalidate the indemnity provisions of the contract. Hilltop agrees to use its best efforts to maintain the same or similar liability insurance during the term of this Agreement. This Agreement to indemnify and hold harmless does not constitute a waiver by either Columbia Heights or Hilltop of limitations on liability provided by Minnesota Statutes, Chapter 466. SECTION XII Notwithstanding any provision herein to the contrary, in the event that Hilltop fails to maintain and furnish to Columbia Heights required policies of insurance as satisfactory to Columbia Heights or if Hilltop's insurer fails to provide the assurances required, Columbia Heights may at any time during the term of this Agreement terminate this Agreement effective upon sixty (60) days' written notice to Hilltop. 3 51 SECTION XIII Columbia Heights and Hilltop agree to resolve all disputes among them arising from this Agreement by arbitration and without the time and expense associated with court proceedings, pursuant to the terms of the Minnesota Arbitration Act, Minnesota Statutes Chapter 572, et seq., and in agreeing to refrain from bringing suit against each other for the duration of this Agreement, the arbitration established by this Agreement shall be conducted according to the rules of the American Arbitration Association. IN WITNESS WHEREOF, the parties have duly executed this Agreement by their duly authorized officers and caused their respective seals to be hereunto affixed. Date Approved as to form: day of December, 2015. CITY OF COLUMBIA HEIGHTS A Municipal Corporation By By Jim Hoeft, City Attorney for Columbia Heights Approved as to form: 'J Carl -' Newgl City Attorney 4 Gary Peterson, Mayor Walter Fehst, City Manager CITY OF HILLTOP A Municipal Corporation By ferry Murphy, M or and R--tat' yt'C—"--- Ruth Nelsen, City Clerk 52 C;u COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7G MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER I ITEM: I Authorize School Liaison Officer Contract with Columbia Heights School District I DEPARTMENT: Police CITY MANAGER'S APPROVAL: BY /DATE: Scott Nadea December 7, 2015 BY /DATE: BACKGROUND: In 1992, the City of Columbia Heights and School District #13 entered into a Joint Powers agreement to fund a School Liaison Services program. This contract has been renewed each year since then. The program continues to provide benefits to the School District and the Police Department and is an important part of our police /youth initiative. The School District shares expenses with the Police Department during the school year at the rate of one half of 9 /12ths of the cost of providing the officer at the high school and middle school. The School District's share for calendar year 2016, which includes wage, fringe and miscellaneous costs, is $43,960.57 each for the high school and middle school officer, totaling $87,921.14. This reflects the actual officer wages for 2016, and a 2.5 percent increase to the miscellaneous costs in the 2015 agreement (training and equipment allowance, and vehicle related expense). The contract was approved by the Columbia Heights School Board at its December 8 meeting. In September, Officer Jason Pi.ehn started as the High School Liaison. Officer. Officer Danielle Pregler is in her eighth year at the Middle School (Columbia Academy). In their role as Liaison Officers, they develop contacts with the students and staff at the schools that are invaluable in our investigation of juvenile crime. They are also excellent role models to students, and their interaction at the schools is an important link between law enforcement and the educational system. Connecting with community partners such as the School District to focus on youth issues is part of the department's Strategic Plan, STAFF RECOMMENDATION: It is the recommendation of the Police Chief that this agreement be authorized. RECOMMENDED MOTION(S): MOTION: Move to authorize the Mayor and Police Chief to enter into a Joint Powers agreement with Columbia Heights Public Schools for the provision of a Police School Liaison Officer program as stipulated in the Joint Powers Agreement for the period of January 1 through December 31, 2016. ATTACHMENTS: School Liaison Officer Contract 2016 53 SCHOOL LIAISON OFFICER PROGRAM January 1 through December 31, 2016 Columbia Heights Police Department and Columbia Heights Public Schools Prepared and Submitted by: Chief Scott Nadeau November 14, 2015 54 TABLE OF CONTENTS Subject Page Mission., Goals and Primary Responsibilities of the SchoolLiaison Officer ................................................................. ..............................3 Objectives of the School Liaison Officer Position ................................ ..............................4 Position Description - School Liaison Officer Position: Accountability and Education Requirements ............................... ..............................6 Position Description - School Liaison Officer Position: Qualifications............................................................................... ..............................7 Major Areas of Accountability for the School Liaison Officer Position ................................................... ..............................9 Guidelines for School Liaison Officer Position .................................... .............................11 JointPowers Agreement ....................................................................... .............................12 Cost Factor Breakdown: High School Liaison for 2016 ....................... .............................15 Cost Factor Breakdown: Middle School Liaison for 2016 ................... .............................16 55 MISSION, GOALS AND PRIMARY RESPONSIBILITIES OF THE SCHOOL LIAISON OFFICER Mission Statement: The School Liaison Officer is placed in the school environment to identify, correct, and prevent delinquent behaviors and activities, and to create a positive relationship between youth, police, and other authority figures. Goals: To work with and through school administrators, counselors, teachers, and students to develop a better understanding and a more positive attitude among students as to the role of a police officer. To work in liaison with school officials to provide, as much as possible, a safe and crime - free environment for students and staff. To act as a law enforcement consultant and educator to Columbia Heights School District #13 schools located in Columbia Heights and Hilltop. To administer the D.A.R.E. (Drug Abuse Resistance Education) program in Columbia Heights Public Schools. Primary Responsibilities: The School Liaison Officer shall function as a law enforcement officer within the school environment and under the direction of the Columbia Heights Police Department investigative supervisor. The School Liaison Officer shall act as a resource for students, teachers, counselors, school administrators and parents. The School Liaison Officer shall remain conscious that the primary responsibility is that of a law enforcement officer. The School Liaison Officer plans and coordinates all functions of investigations relating to juveniles and children, in both criminal and non - criminal matters to effectively solve criminal cases and build a basis for successful prosecution when warranted and/or make all appropriate dispositions of non- criminal matters. The School Liaison Officer also develops and presents investigative reports to the County Attorney and/or City Prosecuting Attorney for complaints and coordinates with other juvenile referral agencies to appropriately handle juvenile criminal and non- criminal acts that have come to the attention of the Department. 56 Page 3 THE OBJECTIVES OF THE SCHOOL LIAISON OFFICER POSITION ARE: Objective #1: To provide a formal process or rationale to: a. Enhance the general safety to students and faculty staff in and around public schools. b. Monitor and /or prevent juvenile gang activity and provide intelligence. Reduce the use of uniform officer intervention at school sites for response to school related service demands. d. Maintain community contact for: parents, students, neighborhoods, community organizations (PTA and other service providers) e. Handle incidents such as minor assaults, thefts, and threats as they occur in the officer's assigned schools. Indicator #1: Lack of formal or informal complaints or concerns, either written or verbal. Receipt of letters, phone calls or personal verbal contacts regarding individual or program successes. Objective #2: To provide the following services to Columbia Heights School District #13 schools located in Columbia Heights and Hilltop: a. To coordinate and directly provide for, in appropriate circumstances, the general safety of students and staff. b. To monitor gang activity throughout school property and respond appropriately to non - school related intelligence regarding gang activity. c. To reduce the number of calls responded to by uniform officers at school sites. Page 4 57 Indicator #2: Maintain adequate knowledge through review of daily reports, keeping abreast of the above current problems and disseminating information to Investigations and Patrol. Objective #3: Complete all investigations assigned or generated in the field to their proper conclusion. Indicator #3: Pass Liaison supervisor's review of completed cases. One hundred percent of cases must pass this review. Objective #4: Improvement and continual update of Liaison Program. Indicator #4: Yearly evaluations to be prepared by School Officials, Police Department and Liaison Officer for annual review and evaluation. Page 5 58 POSITION DESCRIPTION - SCHOOL LIAISON OFFICER ACCOUNTABILITY AND EDUCATION REQUIREMENTS The School Liaison Officer is a member of the department below the rank of Sergeant. Officer may be assigned from the rank of police officer to serve as School Liaison Officer. Officers who desire to serve in this assignment may submit their requests in writing to the Police Captain. Officers serving in the assignment may be removed at the discretion of the Chief of Police. The appointed School Liaison Officer may vacate this position with thirty days written notice to the Chief of Police. While serving in this assignment, officers shall receive a pay differential in accordance with the labor agreement in effect at the time of the assignment. Accountable to: The School Liaison Officer reports to and is directly accountable to the Chief of Police or his designee. Education and Training Requirements: POST licensed, supplemented by course work in investigative techniques, interview and interrogation techniques and crime scene processing techniques. Page 6 59 POSITION DESCRIPTION - SCHOOL LIAISON OFFICER QUALIFICATIONS 1. Considerable knowledge of the principles of modern investigation techniques. 2. Thorough knowledge of scientific methods of crime detection and criminal identification. 3. Thorough knowledge of federal, state and local laws and ordinances that are enforced by the department. 4. The ability to communicate effectively both orally and in writing. 5. The ability to analyze complex criminal transactions and trends and to use information obtained to successfully charge criminal offenders. b. The ability to develop informants. 7. The ability to independently manage a number of investigations at any one time. 8. The ability to manage time effectively. 9. The ability to speak effectively in public. 10. The ability to work effectively with juveniles. 11. The ability to gain cooperation, support, and assistance of the area church organiza- tions, County Welfare, County Court Services, Juvenile Court, County and City law enforcement, and other agencies in the community. 12. To meet as needed with members of the personnel team and police department representatives to discuss individual student and student body problems that affect school or police department objectives. 13. The ability to provide educational materials and lectures for the students, the school staff and the community on juvenile problems and problem areas, available assistance services for the students and their parents, and other topics deemed important. 14. The ability to assist in the classroom in the teaching of physical, mental and social effects of alcohol and narcotic use and abuse. 15. The ability to train the school staff in matters of school security, symptoms of drug abuse, etc. 16. The ability to identify and take proactive steps to prevent activities that lead or could lead to delinquent behavior and/or activities. 60 Page 7 17. The ability to establish a favorable rapport with students as a means for preventing delinquent behavior and activities. 18. The ability to maintain the police image. The School Liaison Officer is responsible for the enforcement of city and state law, but whose treatment is fair and recognizes he /she is working in a juvenile environment. The School Liaison Officer must assure the students and the staff that he /she is not in the school to create a police state, he /she is there to assist the administrative staff and students. 19. The ability to promote informal contacts between the students and the police, to increase communication and understanding between the two. 20. The ability to meet all other requirements and performance criteria defined for patrol officer position. 21. The ability to serve as a resource person for law enforcement and juvenile court procedures. The officer will be in a position with the school to develop a better understanding and have additional pertinent information for juvenile court determinations. 22. The School Liaison Officer is often in a favorable position to work on many creative programs and can work with juvenile group leaders trying to interest them in constructive activities of a recreational or social nature. Page 8 61 MAJOR AREAS OF ACCOUNTABILITY OF THE SCHOOL LIAISON OFFICER POSITION 1. To attend school staff meetings as a resource person in developing and adopting procedures that will contribute to the prevention of juvenile delinquency. 2. To communicate and cooperate with county welfare officers, probation personnel, and other members of the professional community when appropriate. 3. To assist school staff members in understanding the Anoka County Juvenile Court System, law enforcement ramifications, and the technique of court referrals when necessary. 4. To be a part of the total team effort to provide role models and prevent undesirable behavior patterns from developing. Endeavor to build and maintain rapport between youth, school, and police by day -to -day contact as a resource person. 5. To become involved in school and outside youth activities in order to understand special problems of youth and how they may be positively addressed. Participate in community affairs as requested or assigned, and be available for lectures to school and community groups. 6. To facilitate education programs for students; i.e., acts as a resource person in the continuing development of drug education, etc. 7. To assist and advise in security matters regarding school buildings and properties that are normally supervised by school staff members upon request of appropriate school official(s). 8. To maintain individual police skills, including physical conditioning. Stay abreast of developments in the crime prevention and youth relations fields and changes in related laws and ordinances. 9. To prepare and submit necessary case files regarding cases assigned or investigated. 10. To work under the direction of the investigative supervisor and will accept input from appropriate school administrative personnel. 11. Investigates reported crimes, both in and out of the school environment, for the purpose of collecting evidence and identifying, locating, questioning witnesses and suspects, and making legal arrests as justified by the facts developed. 12. Obtains and processes physical evidence. Handles or arranges for the processing of a crime scene including measurements, fingerprints, photos and drawings, etc. 62 Page 9 13. Ensures proper development of cases for prosecution, builds an accurate and complete case file through reports of actions and findings. Coordinates the disposition of all juvenile matters to provide for unified approach. 14. Ensures proper disposition of cases for prosecution, builds an accurate and complete case file through reports of actions and findings. Coordinates the disposition of all juvenile matters to provide for a unified approach. 15. Ensures proper disposition of all assigned cases, meets with the Investigative Supervisor regularly to review the status of all cases and determines whether to pursue, delay or close the matter. 16. Confers with parents, other members of the Criminal Justice System, and those private and public agencies within the community which are involved in the case, counseling or treatment of juveniles, children or family units, in the disposition of matters involving juveniles and /or children. 17. Preparation and presentation of appropriate material to students of elementary, junior and senior high schools. 63 Page 10 GUIDELINES FOR THE SCHOOL LIAISON OFFICER POSITION 1. Work week will be based on a 40 -hour week. 2. Work hours will be proximate to the school day. 3. Will be assigned a department vehicle while on -duty. 4. Time commitment is appropriately divided in each of the following categories: a. In- school activity at high school or middle school b. Case investigation, training, and meetings as scheduled c. D.A.R.E. d. Elementary schools 5. Primarily reports to the Investigative Supervisor. Secondary supervisor is the on- duty police supervisor. 6. Must report to a supervisor daily, but is authorized to report immediately to the school each day if approved. 7. Must be prepared to perform all police functions, as the officer is subject to immediate call -out for other activities, but must be discreet in the visibility of police equipment. 8. Will be assigned a cellular phone, and the phone must be operational during all hours when on duty. 9. Break time will be as defined in the union agreement. 10. Will be assigned desk space at the Police Department and will be provided appropriate office space and supplies by the schools. 11. Must dress in a manner that is acceptable to school administrators and with the approval of the Chief of Police. 12. The officer is at all times under police supervision, but is expected to work closely with school administrators and staff. The objective is to solve problems, assist school staff, and to assist students. 13. Will keep a log and prepare appropriate reports to the Chief of Police or his designee. Page 11 64 JOINT POWERS AGREEMENT This Joint Powers Agreement dated this day of is made pursuant to M.S. 471.59 by and between the City of Columbia Heights (City) and Columbia Heights Public Schools (School District). Purpose: The purpose of this agreement is to create, fund, and implement the positions of Police School Liaison Officer. 2. Duties and Responsibilities: The job description for the School Liaison Officer is attached. 3. Selection Process: From applications of qualified applicants for the position of School Liaison Officer, one or more candidates will be selected by a selection board made up of School District #13 personnel and appointed Police Department personnel. Oral interviews are to be administered by the same selection board. The final appointment of the School Liaison Officers are at the discretion of the Chief of Police. The School Liaison Officer may be removed from the position at the discretion of the Chief of Police. 4. Funding: The School District and City will share the following expenses equally during the school year, except in no event may the School District's share of the expenses exceed 1/2 of 9/12 of the total officer compensation and benefit package for the High School Liaison Officer and the Middle School Liaison Officer. A. Officer's Salary B. Position Grade Enhancement C. Holiday Pay D. F.1.C.A. E. Workers Compensation F. P.E.R.A. G. Hospitalization H. Training and Equipment 1. Vehicle - related Costs The cost breakdowns for the period of January 1, 2016 through December 31, 2016 are attached. Page 12 65 5. Billing: The City shall submit a bill to the School District, which will be paid within thirty days of receipt. b. Terre: This agreement shall commence on January 1, 2016, and shall end on December 31, 2016. 7. General Provisions: The Police School Liaison Officer is a city employee and shall not be considered an employee of the School District for any purpose, including but not limited to salaries, wages, other compensation or fringe benefits, Workers Compensation, Unemployment Compensation, P.E.R.A., Social Security, liability insurance, keeping of personnel records, termination of employment, individual contracts or other contractual rights. The officer will report to and be directed by the Investigative Supervisor, but will consult regularly with the School District officials. The officer will have office space and phone at the assigned school without cost to the City. 8. .Indemnification by City. The School Liaison Officer is a city employee. The City shall indemnify, hold harmless, and defend the School District, its elected officials and employees against any and all liability, loss, costs, damages, expenses, claims or actions which the School District, its officers and employees may hereafter sustain, incur or be required to pay, arising out of or by reason of any negligent or willful act or omission of the City, its agents or employees, in the execution, performance, or failure to adequately perform the City's obligations pursuant to this agreement. 9. Indemnification by School District. The School District shall indemnify, hold harmless, and defend the City, its officers and employees against any and all liability, loss, costs, damages, expenses, claims or action which the city, its officers and employees may hereafter sustain, incur or be required to pay, arising out of or by reason of any negligent or willful act or omission of the School District, its agents or employees, in the execution, performance or failure to adequately perform the School District's obligations pursuant to this agreement. 10. Termination of Agreement: Ninety day written notice by either School District or City is required to terminate the program. The Liaison Officer can be removed at any time following the written notification of termination of the program. 11. Temporary Reassignment: Temporary reassignment of the Liaison Officer is at the discretion of the Chief of Police not to exceed thirty consecutive days, contract to be renegotiated after thirty days. Page 13 66 12• The resolution of unforeseen problems arising in this program shall by representatives appointed by the School District and the Chief of oi negotiated lice. " witness whereof, the parties have executed this agreement th written above. e day and year Y first City of Columbia Heights Gary L. Peterson Mayor Scott Nadeau Chief of Police Page 14 Columbia Heights Public Schools Kathy Kelly Superintendent of Schools John Larkin School Board Chair COST FACTOR BREAKDOWN HIGH SCHOOL LIAISON OFFICER PROGRAM 2016 Base Wage —High School Liaison Offices•; Patrol Top Wage Liaison Officer Premium Longevity (4 year rate) Holiday pay Deferred Compensation Overtime Allocation Total Base Wage Compensation and Fringe. $6,159.00 /month $ 160.00 /month $ 246.38 /month F.I.C.A. (1.45 %) Workers Comp (3.71 %) P.E.R.A. (16.20 %) Employee Insurance ($865 /month +$30 /mo to health savings) Total Fringe Benefit Costs Miscellaneous Costs. Training and equipment allowance Vehicle related expense Total Miscellaneous Costs Total Yearly Costs To compute monthly total: $114,248.33 divided by 12 months = $ 9,769.01 To compute school year total: $ 9,520.69 X 9 months (school yr) = $97,921.13 To compute School District cost: Of 9112 funding formula = $43,960.57 Total Cost to Columbia Heights Public Schools For High School Officer for 2016: Page 15 $ 73,908.00 /year $ 1,920.00 /year $ 2,956.56 /year $ 4,052.00 /year $ 425.00 /year $ 3 487 00/year $ 86,748.56 /year $ 1,257.85 /year $ 3,218.3 7 /year $ 12,491.79 /year 10 740.00/ ear 27,708.02 /year $ 1,705.60 /year $ 1,066.00/- ear $ 2,771.60 /year $1173228.18 /year $43,960.57 COST FACTOR BREAKDOWN COLUMBIA ACADEMY LIAISON OFFICER PROGRAM 201.6 Base Wage — Middle School Liaison Offcer. Patrol Top Wage Liaison Officer Premium Longevity (4 year rate) Holiday pay Deferred Compensation Overtime Allocation Total Base Wage Compensation and Fringe: $6,159.00 /month $ 160.00 /month $ 246.38 /month F.I.C.A. (1.45 %) Workers Comp (3.71 %) P.E.R.A. (16.20 %) Employee Insurance ($865 /month +$30 /mo to health savings) Total Fringe Benefit Costs Miscellaneous Costs: Training and equipment allowance Vehicle related expense Total Miscellaneous Costs Total Yearly Costs To compute monthly total: $114,248.33 divided by 12 months — $ 9,769.01 To compute school year total: $ 9,520.69 X 9 months (school yr) = $87,921.13 To compute School District cost: of 9/12 funding formula = $43,960.57 Total Cost to Columbia Heights Public Schools For Middle School Officer for 20.76: Page 16 $ 73,908.00 /year $ 1,920.00 /year $ 2,956.56/year $ 4,052.00 /year $ 425.00 /year $_.3,487.00 ar $ 86,748.56 /year $ 1,257.85/year $ 3,218.37/year $ 12,491.79 /year $ 10,740.00/year $ 27,708.02 /year $ 1,705.60 /year $ 1,066-00/year $ 2,771.60 /year $117,228.18 /year $43,960.57 COLUMBIA a AGENDA SECTION CONSENT -CF4 COLUMBIA ITEM NO. 7H l.' -HEIGHTS MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: I Approve Transfer of Funds DEPARTMENT: Police CITY MANAGER'S APPROVAL: BY /DATE: Scott Nadeau /December 7, 2015 BY /DATE: `�✓ BACKGROUND: The Police Department has received four checks from the Columbia Heights School District: $2,448 for security at football games $ 720 for 49th Avenue traffic direction (Sept and Oct 2015) $3,640 for 49th Avenue traffic direction (Summer Academy June 2015) $1,522 for security at graduation and 49th Avenue traffic direction (April, May, June 2015) $8,330 The Police Department has received two checks from Anoka County for reimbursement of overtime for our officer in the Anoka Hennepin Drug Task Force, The AHDTF is partially funded by a federal grant administered by the State of Minnesota that covers partial reimbursement of overtime incurred by officers. $2,000 for 2nd quarter AHDTF OT $2,000 for 3rd quarter AHDTF OT $4,000 Per our agreement with Anoka County, we received reimbursement for detox transports at the rate of $30 per detox patient transported. We received a check covering six transports during the second and third quarters. $ 720 for 2nd and 3rd quarter detox transports The CHPD has been participating in the statewide Safe and Sober (Toward Zero Deaths or TZD) program. We received reimbursement from Coon Rapids, the agency coordinating the grant, for the overtime expended on that initiative. $ 492.34 for Toward Zero Death reimbursement The total of these eight checks is $13,542.34. STAFF RECOMMENDATION: The above mentioned funds were deposited into the General Fund. The Police Department is requesting that these funds be transferred back into the 2015 Police Department Budget, Overtime Line Item 2010, RECOMMENDED MOTION(S): MOTION: The $8,330 received from the Columbia Heights School District for various traffic direction and security details, and the $4,000 received from Anoka County as partial reimbursement'for overtime for our officer assigned to the Anoka Hennepin Drug Task Force, and the $720 received from Anoka County as reimbursement for detox transports, and the $492.34 received from Coon Rapids for our participation in the Toward Zero Death traffic enforcement be transferred to line 1020, Overtime. The total is $13,542.34. ATTACHMENTS: none 70 COLUMBIA AGENDA SECTION CONSENT CH HEIGHTS ITEM NO. ,I MEETING DATE DECEMBER 14, 2015 El CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Authorize Extension of Fire Service Contract with City of Hilltop. DEPARTMENT: Fire CITY MANAGER'S BY /DATE: Gary Gorman BY /DATE: / %/� AL: In 2004 the City entered into a three -year agreement to provide fire and EMS services to the City of Hilltop. The contract has been extended in three year increments since 2007. The current contract expires December 31, 2015. The proposed contract is for 2016 through 2018. The proposed contract has a language change for charges for the Anoka County Fire Protection Council Public Safety Data System annual costs. These costs are invoiced to the individual cities and is outside of the service contract. The service fee for 2016 is based on the contract formula using the 2016 Fire Department budget. There is an increase of 3% for 2017 and a 3% increase for 2018. In addition to the annual service fee there is a $7681.59 capital equipment contribution included each year. The City of Hilltop approved the contract December 7, 2015. STAFF RECOMMENDATION: Approve the extension of the fire service contract with the City of Hilltop. RECOMMENDED MOTION(S): Move to authorize the Mayor and City Manager to enter into a three -year Fire and EMS service contract with the City of Hilltop starting January 1, 2016 and extending through December 31, 2018. ATTACHMENTS: Fire /EMS Service Contract 71 JOINT AGREEMENT AND CONTRACT BETWEEN THE CITY OF COLUMBIA HEIGHTS AND THE CITY OF HILLTOP FOR FIRE FIGHTING AND EMERGENCY MEDICAL SERVICES This Agreement, made and entered into by and between the City of Columbia Heights, hereinafter referred to as "Columbia Heights ", and the City of Hilltop, hereinafter referred to as "Hilltop "; WITNESSETH; WHEREAS, Columbia Heights presently has a Fire Department suitably equipped for fire fighting and emergency medical service; and WHEREAS, Hilltop has no adequate fire fighting equipment of its own, and desires to obtain the use of Columbia Heights equipment, and the services of its firefighters, instructors, inspectors and emergency medical responders for the properties and persons within the territorial limits of Hilltop, Anoka County, Minnesota. THEREFORE, it is mutually agreed: SECTION I That Columbia Heights shall furnish to Hilltop fire fighting services and emergency medical services to the same extent as is afforded to residents and properties in the City of Columbia Heights by the Fire Department of Columbia Heights, including fire suppression, Minnesota State Fire Code inspections, fire education programs in schools, public education, and emergency medical services, including all administrative and capital costs associated with said services. SECTION II That as and for compensation, Hilltop shall pay to Columbia Heights for fire fighting and emergency medical services the following amounts covering the periods corresponding thereto as described below, to -wit: January 1, 2016 — December 31, 2016 $66,699.27 January 1, 2017 — December 31, 2017 $68,469.80 January 1, 2018 — December 31, 2018 $70,293.45 Said 2016 payment includes a service fee of $ 59,017.68. Said 2017 payment includes the 2016 service fee plus a 3% increase. Said 2018 payment includes the 2017 service fee plus a 3% increase. An annual capital contribution for equipment in the amount $7,681.59 is included each year. 70 SECTION III That this Agreement is for a term of three (3) years beginning January 1, 2016, and shall remain in effect until December 31, 2018. Either party may terminate this Agreement for substantial and material breach of the terms of this Agreement upon five (5) months' prior written notification to the other party. That Columbia Heights may terminate this Agreement upon forty -five (45) days' written notice when any semi -annual fee required to be paid by Hilltop has not been received by Columbia Heights during normal business hours thirty (30) calendar days after July 31 and December 31, respectively. Payments made thirty (3 0) days after July 31 and after December 31, respectively, but prior to the forty -five (45) days' notice of cancellation, shall void the cancellation. Further, should substantial and material changes in conditions occur which are beyond the control of the City of Columbia Heights such that performance by Columbia Heights becomes impossible, then this Agreement can be terminated by Columbia Heights upon five (5) months' written notice to Hilltop. SECTION IV Payment adjustments for following contract terms shall be based on per capita calculations based on the respective populations of Columbia Heights and Hilltop, including changes in populations, the Columbia Heights Fire Department budgets for 2019 for the prospective contract term of 2019 through 2021, and taking into account actual equipment purchases minus any state and federal grants, aids or contributions. Population figures for Hilltop and Columbia Heights shall be based on the then most recent populations figures compiled by the Metropolitan Council. On the effective date of this Agreement, the parties hereto have had discussions about forming an Emergency Medical Services Taxing District (EMS District) covering the corporate boundaries of Columbia Heights and Hilltop. If created during the term of this Agreement, any tax revenue generated from Hilltop will be used to reduce Hilltop's contract costs as set forth in Section II hereof. Costs assessed to the City of Hilltop associated with the Anoka County Fire Protection Council Joint Powers Agreement and the Anoka County Public Safety Data System are not included in the terms this contract. SECTION V That where deemed necessary by statute or by law enforcement agencies, arson investigation services shall be rendered by Columbia Heights to Hilltop. Said services shall be rendered at a rate of Forty -Five and no /100 Dollars ($45.00) per hour, plus expenses incurred by Columbia Heights for gathering and processing evidence. Columbia Heights shall notify Hilltop in advance should estimated arson investigation services and expenses exceed Fire Hundred and no /100 Dollars ($500.00) per investigation. That where deemed necessary by the Fire Chief of Columbia Heights (if the chief is present, otherwise the next in command or agent), and emergency abatement for the health and safety of residents or to secure property, said expenses shall be rendered at the actual costs of the emergency abatement. SECTION VI That payments of the fees under the terms of this contract shall be due and payable by Hilltop to Columbia Heights as follows: January 1, 2016: $33,349.63 July 1, 2016: $33,349.64 January 1, 2017: $34,234.90 Julyl, 2017: $34,234.90 January 1, 2018: $35,146.72 July 1, 2018: $35,146.73 Arson investigation and emergency abatement fees shall be due and payable by Hilltop to Columbia Heights within thirty (30) days of receipt of invoicing by Columbia Heights for said investigation or emergency abatement. Payments made after the due date shall bear interest at the rate of 8% on the delinquent balance until paid. SECTION VII That the operation of the equipment and the direction of its use at the scene of the fire, together with its firefighters, shall be under the complete charge of the Fire Chief of Columbia Heights (if the chief is present, otherwise the next in command or agent). The question of fact in each instance as to whether or not the fire equipment and personnel of Columbia Heights are ready and able to respond to a call in Hilltop shall be determined by the Fire Chief or the next in command or agent. As a member of a mutual aid fire fighting pact, Columbia Heights may commit equipment of pact partner communities, as needed to fight fires in Hilltop, should Columbia Heights equipment be deemed unavailable by the Fire Chief, next in command or agent. In the event that the Fire Chief or next in command determines that Columbia Heights equipment to be insufficient to fight a fire or fires in Hilltop, necessitating the need to commit equipment of a pact partner community, Hilltop agrees to pay an additional sum of Two Hundred and Seventy and no /100 Dollars ($270.00) to Columbia Heights to be used by Columbia Heights for payments to the pact partner community for the purpose of defraying the expense of that pact partner community incurred through responding to a Hilltop fire. SECTION VIII That this Agreement contains the entire agreement of Columbia Heights and Hilltop and no representations, inducements, promises of any other agreements, oral or otherwise, not embodied herein, shall be of any force or effect. SECTION IX That Hilltop shall indemnify the City of Columbia Heights and hold it harmless from all claims, actions, suits, proceedings, costs, expenses, damages, and liabilities arising out of firefighting, emergency medical, and inspection services furnished by Columbia Heights to Hilltop. However, such indemnification liability of Hilltop to Columbia Heights shall specifically exclude workers' compensation claims, motor vehicle no -fault claims (PIP), health and medical care costs for Columbia Heights employees. Hilltop has obtained insurance coverage from LMCIT to cover this contractual liability. Hilltop's liability to Columbia Heights shall be limited to the coverage afforded by this insurance policy, except that the $10,000.00 deductible provision of the policy shall not apply to Hilltop's responsibility to indemnify Columbia Heights. Hilltop shall name Columbia Heights as a certificate holder on said insurance policy, and the policy shall bear a provision that requires that insurer give Columbia Heights not less than thirty (30) days' written notice of termination, cancellation, or any change in coverage under the policy. The cancellation provision may not bear a disclaimer limiting the obligation of the insurer to only "endeavor" to give notice and may not contain a disclaimer that the insurer shall bear no responsibility by failing to provide such notice. Columbia Heights shall have the right to examine and inspect any policies of insurance issued to cover Hilltop's contractual liability established by this Agreement, including the first policy to be issued hereunder. Columbia Heights shall further have the right to demand reasonable assurances from Hilltop's insurers that Hilltop's insurers will not attempt to invalidate the indemnity provisions of the contract. Hilltop agrees to use its best efforts to maintain the same or similar liability insurance during the term of this Agreement. This Agreement to indemnify and hold harmless does not constitute a waiver by either Columbia Heights or Hilltop of limitations on liability provided by Minnesota Statutes, Chapter 466. SECTION X Notwithstanding any provision herein to the contrary, in the event that Hilltop fails to maintain and furnish to Columbia Heights required policies of insurance as satisfactory to Columbia Heights or if Hilltop's insurer fails to provide the assurances required, Columbia Heights may at any time during the term of this Agreement terminate this Agreement effective upon thirty (30) days' written notice to Hilltop. IN WITNESS WHEREOF, Columbia Heights and Hilltop have caused this Contract to be duly ratified by their respective Councils and executed pursuant thereto as of the day and year first above written. Dated this day of , Approved as to form: By Jim Hoeft, City Attorney For Columbia Heights Approved as to form: Carl J. Newquist, City Attorney for Hilltop CITY OF COLUMBIA HEIGHTS A Municipal Corporation LIM Gary Peterson, Mayor and Walter Fehst, City Manager CITY OF HILLTOP A Municipal Corporation Jerry Murphy, Mayor and Ruth Nelsen, City Clerk C,� COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7J MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: ADOPT RESOLUTION 2015 -99 ACCEPTING THE FEASIBILITY REPORT FOR ZONES 2 AND 3 STREET REHABILITATION PROJECT AND ORDERING THE PUBLIC IMPROVEMENT HEARING, CITY PROJECT NO. 1602 ANP 1607 DEPARTMENT: Public Works CITY MANAGER'S APPROVAL: Z4 BY /DATE: Kevin Hansen / December 9, 2015 BY /DATE: ELI_6 _ Background: Staff has developed preliminary plans and prepared the Feasibility Report for Zones 2 and 3 of the Annual Street Rehabilitation Program. Zone 2 is bounded by Reservoir Boulevard on the west, Stinson Boulevard on the east, 45th Avenue on the north, and 37th Avenue on the south. Zone 3 is bounded by Central Avenue /Reservoir Boulevard on the west, Stinson Boulevard on the east, Corporate Limit on the north and 47th Avenue /451h Avenue on the south. In addition, 45th Avenue from Main Street to the dead end at University Avenue was added to Zone 2 in a joint project with the City of Fridley. Analysis /Conclusions: Attached is the Feasibility Report that details the scope of work for Street Rehabilitation in Zone 2, including 45th Avenue. No work is proposed in Zone 3. Particular issues are summarized below: 1. Rehabilitation Strategies: Three treatment strategies are utilized in the street rehabilitation program: mill and overlay, partial reconstruction, and full reconstruction. In Zone 2, partial reconstruction and mill and overlay is proposed for the streets identified on the attached area map. A fourth strategy, seal coating, is addressed under separate engineering reports when seal coating work is proposed. Staff utilizes three methods in evaluating the condition of the street and determining appropriate treatment: 1. Present physical structure (cross- section): Each street within Zone 2 has been excavated down to the sub -base material and the individual street segment cross - sections are catalogued. 2. Non - destructive strength determination and condition rating: Braun Intertec, a geo- technical engineering consultant, conducted tests on all streets at 50 -foot intervals with a dropping weight deflection test. From this, the strength of the road segment is determined. Braun also develops their own pavement conditions index. 3. Overall Condition Index (OCI): Staff also reviews each street segment by measuring the type and quantity of each type of cracking in the pavement. This information, along with other factors, such as drainage and physical structure is used to determine an "overall condition index ". An OCI of 70 or greater suggests seal coat is the appropriate treatment. An OCI between 69 and 55 reflects that the bituminous pavement is showing signs of significant deterioration and a mill and overlay is required to strengthen the pavement. An OCI of less than 55 suggests the best course of action is to reconstruct the street, typically because both the pavement and the base under the pavement are failing. The need for full or partial reconstruction depends on the condition of the curb and gutter. The results are then used to determine the appropriate treatment to maximize the life of the street. 2. Utilities Replacement: Utilities have been reviewed in Zone 2. Staff utilized structure inspections, televising, history of water main breaks, age of water main and services, leakage testing (independent testing), and previous engineering reports in determining utility recommendations. Only minor water main and sanitary sewer utility work is proposed. Storm water manhole and catch basin structure replacements /repairs are also proposed. 3. Assessment Methodology: Street Rehabilitation in Phase 1, Zones 1, 2 and 3 all followed the previous assessment policies for each area. Under the 1999 Alley Construction Program and in subsequent zones, a "unit" assessment methodology was employed rather than using a "front foot" rate basis. The area of Columbia Heights west of Central Avenue is essentially a block type development pattern with streets and avenues. The existing assessment policy for this area would involve "street" assessments and "avenue" assessments. The "street" frontage (typical front of property or where driveway access is) would pay a particular rate for the full frontage for that type of treatment (mill and overlay or full reconstruction, for example) used on that street. That same parcel would pay a reduced rate for the avenue for the City of Columbia Heights - Council Letter Page 2 4. Scope of Work: The cost sharing policy provides a 70/30 cost share for partial reconstruction streets, and 85/15 for mill and overlay. The 45th Avenue construction, Project No. 1607 is included with the City of Fridley 2016 Street Resurfacing project, designed and administered by the City of Fridley. 5. Financing: Street Rehabilitation Zone 2: The estimated construction costs are as follows: 1. Partial street reconstruction: $125,085. 2. Mill (FDR) & Overlay construction: $ 52,215. 3. Mill & Overlay construction: $143,700. 4. Utilities: $ ** Project funding is proposed as follows: Assessments: $248,650. Infrastructure Fund: $ 72,350. Sanitary Sewer Fund: $ ** Water Construction Fund: $ ** Storm Sewer Fund: $ ** The costs and associated funding for utility work ( * *) will be further developed during the final design. The proposed cost for the partial reconstruction on 43 d Avenue is substantially higher than similar projects. This is due to a combination of extra work required due to the poor soils and all of the parcels being assessed an avenue rate. 6. Past Assessments: For 43rd Avenue, property owners on Polk Street were assessed for a mill and overlay in 2007. For 45th Avenue, property owners will also be assessed for a seal coat in 2016. 7. Concurrent Projects: Proposed State Aid Streets mill and overlay on Jefferson Street. Seal Coat in Zone 7B. 8. Utility Issues: The report does provide deficiencies in several manholes /catch basins in Zone 2. Staff is recommending replacement of structures due to size and deteriorated block or brick construction. 9. Meeting Dates: Staff has established the following meeting dates: Resident Informational: Tuesday, January 26, 2016 Public Hearing: Monday, February 1, 2016 RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2015 -99, there being ample copies available for the public. Move to adopt Resolution 2015 -99, being a resolution accepting the Feasibility Report for Zone 2 Street Rehabilitation, City Project Nos. 1602 and 1607, and ordering the Public Improvement Hearing beginning at 6:45 p.m. on February 1, 2015. Attachments: Resolution 2015 -99 Feasibility Report CH Map Fridley Map RESOLUTION NO. 2015 -99 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, the City Council of Columbia Heights is proposing to rehabilitate local streets in Zones 2 and 3 that have not been rehabilitated under the street program, and WHEREAS, pursuant to Resolution No. 2015 -79, a report has been prepared by the City Engineer with reference to the Program, and the following street(s): Zone 2 is bounded by Reservoir Boulevard on the west, Stinson Boulevard on the east, 45th Avenue on the north, and 37th Avenue on the south. And, 45th Avenue from Main Street to the dead end at University Avenue was added. Zone 3 is bounded by Central Avenue /Reservoir Boulevard on the west, Stinson Boulevard on the east, Corporate Limit on the north and 47th Avenue /45th Avenue on the south. WHEREAS, the report provides information regarding whether the proposed project is feasible, necessary and cost - effective, and Said report is hereby received by the City Council of Columbia Heights on December 14, 2015. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. The Council will consider the improvement of such streets in accordance with the report and the assessment of abutting or benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $405,000. 2. A public hearing shall be held on such proposed improvement on the 1s' day of February, 2016, in the City Council Chambers at 590 40th Avenue N.E. at 6:45 P.M. and the City Clerk shall give mailed and published notice of such hearing and improvement as required by law. ORDER OF COUNCIL Passed this 14th day of December, 2015 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk /Council Secreta CH City of Columbia Heights FEASIBILITY REPORT FOR 2016 STREET REHABILITATION IMPROVEMENTS: ZONES 2 AND 3 CITY PROJECTS 1602 AND 1607 DECEMBER, 2015 ENGINEERING DEPARTMENT 63738 th Avenue NE, Columbia Heights, MN 55421 763 - 706 -3700 •.• 763 - 706 -3701 (Fax) STREET REHABILITATION IMPROVEMENTS COLUMBIA HEIGHTS, MINNESOTA ZONES 2 AND 3 PROJECT NUMBERS 1602 AND 1607 LOCATION: ZONE 2 —AREA BOUNDED BY RESERVOIR BOULEVARD TO STINSON BOULEVARD 37TH AVENUE TO 45TH AVENUE, PLUS 45TH AVENUE, MAIN STREET TO DEAD END AT UNIVERSITY AVENUE ZONE 3 —AREA BOUNDED BY CENTRAL AVENUE /RESERVOIR BOULEVARD TO STINSON BOULEVARD 47TH AVENUE /45TH AVENUE TO NORTH CORPORATE LIMIT This feasibility study includes an analysis of proposed street rehabilitation within Zones 2 and 3, plus 45th Avenue from Main Street to Dead end at University Avenue. IMPROVEMENTS: Partial Street Reconstruction — Random curb and gutter replacement as required, granular sub -base if needed, new aggregate base and new 4" bituminous surfacing. INITIATION: OWNERS BENEFITTING: Mill /FDR and Overlay- Random curb and gutter replacement as required and new 2" to 3" bituminous surface. Utility Construction — Water main replacement /repairs as required to maintain the distribution system. Sanitary sewer replacements /repairs as required to maintain the collection system. Storm sewer replacements /repairs as required to maintain the collection system. City Council in accordance with the Street Rehabilitation Policy. The location of each street is described below and shown on the attached map. The total number of assessed parcels is 186. OWNERS Partial Reconstruction ABUTTING 1. 43rd Avenue, Reservoir Boulevard to Arthur Street (35) OR IMPACTED: Mill /FDR and Overlay 1. 41St Avenue, Reservoir Boulevard to Stinson Boulevard (111) 2. 45th Avenue, Main Street to Dead end at University Avenue ( 40) ISSUES: The following is a study of the key project issues. No streets in Zone 3 are recommended for rehabilitation with this phase of the program. The 45th Avenue construction is part of City of Fridley 2016 Street Resurfacing and will be administered by the City of Fridley under a joint powers agreement. Partial Street Reconstruction On 43rd Avenue, the street has a history of frost heaving, especially on the east end. The spring axle load rating of the pavement is 6 ton, suggesting the existing materials have lost some structural capacity. (Typical spring axle load rating is 7 to 9 ton.) The bituminous pavement and aggregate base is too thin to reclaim and pave. The proposed construction would consist of removing the bituminous surface along with underlying aggregate base and soil to a depth of 13" and placing 9" of new aggregate base and paving a 4" bituminous pavement. Existing concrete curb and gutter would be preserved except for sections with poor drainage or are considered to be a hazard to the snowplows. Mill and Overla The proposed construction would consist of milling or reclaiming the bituminous pavement across the entire street surface and paving a new bituminous mat. Existing concrete curb and gutter would be preserved except for sections with poor drainage or are considered to be a hazard to the snowplows. Sidewalk would be replaced as needed to comply with ADA pedestrian ramps and to replace sections considered hazardous under the City's policy. On 41St Avenue, the proposed construction would consist of milling off 1" to 2" of bituminous pavement across the entire street surface and paving a new 2" bituminous mat. On 45th Avenue, the proposed construction would consist of reclaiming the bituminous pavement and underlying aggregate base for the entire street surface, removing 3" of reclaimed material, and paving a new 3" bituminous mat. Utilities No major water main, sanitary sewer or storm sewer replacement is proposed. For the storm sewer system, staff is proposing structure replacement /repair where existing structures are substandard /deteriorated. Roadway construction will include minor modifications to existing water main, sanitary and storm sewer utility surface structures in order to meet proposed finish grades. FEASIBILITY: The proposed improvement project is necessary to provide consistency with the street rehabilitation policy, cost - effective with the inclusion of partial city funding, and technically feasible as prescribed in the construction recommendations found elsewhere in this report. The project and project elements should be implemented as proposed in this study. The improvements, once completed, will provide a benefit to the properties served. SCHEDULE: Construction is scheduled to begin in the spring of 2016 with substantial completion occurring in late summer. The 45th Avenue construction is part of City of Fridley 2016 Street Resurfacing and will be administered by the City of Fridley. Zone 2 Council receives Feasibility Report and orders Public Improvement Hearing Dec 14, 2015 Public Informational meeting prior to Public Improvement Hearing Jan 26, 2016 Public Improvement Hearing and Council orders Public Improvement Project Feb 1, 2016 Council Approves Plans and Specifications, Authorizes Advertisement for Bids Feb 8, 2016 Bid Opening Apr 19, 2016 Council Awards Contract Apr 25, 2016 Begin Construction May, 2016 Construction Completed Aug, 2016 45111 Avenue Council accepts Feasibility Report and orders Public Improvement Hearing Dec 14, 2015 Public Informational meeting prior to Public Improvement Hearing Jan 26, 2016 Public Improvement Hearing and Council orders Public Improvement Project Feb 1, 2016 Council Approves Joint Powers Agreement with City of Fridley Feb 8, 2016 Council Approves Plans and Specifications, Authorizes Advertisement for Bids Feb 8, 2016 Bid Opening (City of Fridley) Feb 26, 2016 Council Concurs with Bids Mar 14, 2016 Begin Construction (Project -wide) May, 2016 Construction Completed (Project -wide) Sept, 2016 FINANCING: Financing would be a combination of assessments to benefitted properties, infrastructure fund including Municipal State Aid funds (population apportionment), and utility funds. The estimated construction costs for each option are as follows: Type of Construction Proposed Assessments Infrastructure Fund Partial Reconstruction $ 87,585. $37,500. 4 Mill (FDR) and Overlay $ 36,540. $15,675. Mill and Overlay $124,525. $19,175. Engineering and Administration $29,180. The assessments reflect a flat fee of 10% of the construction cost included in the amount to assess for a portion of the Engineering and Administration costs. Percentages proposed to be assessed for street rehabilitation are consistent with the policy followed under each of the prior street rehabilitation zones. Utility work performed will be paid for from the appropriate utility fund. ASSESSMENT: Assessments will be in accordance with the City's Street Rehabilitation Ordinance and past practice. Assessments can be based on a per foot basis or a parcel basis. Following the other Zones assessment policies, assessments would be on a Street and Avenue parcel basis. A Street assessment would be at the developed rate for the particular rehab strategy while Avenue assessments would be at approximately 1/3 of the street rate extending % block in either direction of the Avenue. This assumes that all parcels benefit equally for the strategy in front of their property or abutting it, in the case of the Avenue. 2016 IMPROVEMENT PROGRAM COLUMBIA HEIGHTS, MINNESOTA ESTIMATED ASSESSMENTS - PROJECT NUMBERS 1602 AND 1607 ZONE 2 STREET REHABILITATION PROGRAM 45TH AVENUE, MAIN STREET TO DEAD END AT UNIVERSITY AVENUE (Sections 35 and 36, T30N, R24W) I. PARTIAL RECONSTRUCTION OP—'AVENUE, RESERVOIR BOULEVARD TO ARTHUR STREET) Estimated Cost: $125,085. Assessable Construction Cost: $ 87,585. Estimated Assessed Cost per Parcel C, I, MF Street: $10,354.50 C, I, MF Avenue: $ 3,451.50 Estimated Assessed Cost per Parcel Residential Street: $ 7,248.15 Residential Avenue: $ 2,416.05 II. MILL (FDR) AND OVERLAY (45TH AVENUE, MAIN STREET TO DEAD END AT UNIVERSITY AVE) Estimated Cost: $52,215. Assessable Construction Cost: $36,540. Estimated Assessed Cost per Parcel C, I, MF Street: $4,041.00 C, I, MF Avenue: $1,347.00 Estimated Assessed Cost per Parcel Residential Street: $2,828.70 Residential Avenue: $ 942.90 III. MILL AND OVERLAY (41ST AVENUE, RESERVOIR BOULEVARD TO STINSON BOULEVARD) Estimated Cost: $143,700. Assessable Construction Cost: $124,525. Estimated Assessed Cost per Parcel C, I, MF Street: $2,424.00 C, I, MF Avenue: $ 808.00 Estimated Assessed Cost per Parcel Residential Street: $2,060.40 Residential Avenue: $ 686.80 0 CA-18 NIOAU3M OAI9 HIOA8353?1 I � Z w � Lo LO r C� d W W N S O N Q a a rn aEi c QO ' Q.' }° { �5 ?W m .0 _ p � � C N U- z ow N J N m c Q m v) _ f W W Q w o v o tE Z W o' T c a 4 �N=/ I O c c m N U O c c o N N " j N 0 0 l.i. t Q Z �Of �Qtn OQ z O h U _ U W raN -ov�2 2�aN � p a. W a CA-18 NIOAU3M OAI9 HIOA8353?1 I � Z w � Lo LO r C� d W W N S O N m ? a rn aEi c }° { ?W OY O Z � U �o U- z ow oQ 4 milli IIII U � I mill m • t 'I "I". co �,c,'.O � 49'6 Sources: rn iLw Pi ihhr Wnrk 20D tw a 0 4U W Q W _9 Z Fridley 2016 Street Resurfacing O�� Project Streets - Assessed Parcels 0 1 COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7K MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: ADOPT RESOLUTION 2015 -100 ACCEPTING THE FEASIBILITY REPORT FOR THE STATE AID STREET REHABILITATION PROGRAM AND ORDERING THE PUBLIC IMPROVEMENT HEARING, CITY PROJECT NO. 1605 DEPARTMENT: Public Works CITY MANAGER'S APPROVAL: BY /DATE: Kevin Hansen / December 9, 2015 BY /DATE: h1,13 — 1 Background: Staff has developed preliminary plans and prepared the Feasibility Report for Street Rehabilitation Improvements on State Aid streets. Analysis /Conclusions: Attached is the Feasibility Report that details the scope of work for street rehabilitation. Particular issues are summarized below: 1. Rehabilitation Strategies: Three treatment strategies are utilized in the street rehabilitation program: mill and overlay, partial reconstruction, and full reconstruction. In the 2016 program, mill and overlay is proposed for Jefferson Street from 40th Avenue to 44th Avenue. State aid streets are constructed with a 6" to 9" bituminous pavement. (In comparison, local streets have a 3" to 5" pavement thickness.) Staff utilized non - destructive testing and visual rating to evaluate the condition of the street and determining appropriate treatment: Non - destructive strength determination and condition rating: Braun Intertec, a geo- technical engineering consultant, conducted tests on all streets with a falling weight deflection (FWD) test. From this, the strength of the road segment is determined. Braun also provided a visual rating based on the Pacer method. Every two years, MnDOT rates the condition of state aid streets based on visual observation. Structurally the majority of state aid streets are in good condition, however, the surface wear course (2 -3" layer) is deteriorating. A 3" deep mill and overlay are recommended on those streets where the surface layer is deteriorating. Other state aid streets will receive major maintenance (patching and crack sealing) and seal coating in the next 1 to 4 years. 2. Utilities Replacement: Utilities have been reviewed. Staff utilized structure inspections, televising, history of water main breaks, age of water main and services, leakage testing (independent testing), and previous engineering reports in determining utility recommendations. Only minor water main and sanitary sewer utility work is proposed. Storm sewer structure replacements /repairs are also proposed. 3. Assessment Methodology: Street Rehabilitation in Phase 1, Zones 1, 2 and 3 all followed the previous assessment policies for each area. Under the 1999 Alley Construction Program and in subsequent Zones, a "unit" assessment methodology was employed rather than using a "front foot" rate basis. The area of Columbia Heights west of Central Avenue is essentially a block type development pattern with streets and avenues. The area east of Central Avenue has the block type pattern as well as other styles of development patterns. The existing assessment policy would involve "street" assessments and "avenue" assessments. The "street" frontage (typical front of property or where driveway access is) would pay a particular rate City of Columbia Heights - Council Letter Page 2 for the full frontage for that type of treatment (mill and overlay or full reconstruction, for example) used on that street. That same parcel would pay a reduced rate for the avenue for the full frontage. 4. Scope of Work: The cost sharing policy provides an 85/15 split for mill and overlay. In addition, the revised MSA Assessing Policy provides an additional 15% credit based on the traffic volume on Jefferson Street. 5. Financing: Street Rehabilitation State Aid Streets The estimated construction costs are as follows: 1. Mill & Overlay construction: $244,345 2. Utilities: $ ** Project funding is proposed as follows: Assessments: $161,125 MSA /Infrastructure Fund: $ 83,220 Sanitary Sewer Fund: $ ** Water Construction Fund: $ ** Storm Sewer Fund: $ ** The costs and associated funding for utility work ( * *) will be further developed during the final design. 6. Past Assessments: None. 7. Concurrent Projects: Zone 2 Street Rehabilitation 8. Utility Issues: Staff is recommending replacement /repair of catch basin structures. 9. Meeting Dates: Staff has established the following meeting dates: Resident Informational: February 18, 2016 Public Hearing: March 7, 2016 RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2015 -100, there being ample copies available for the public. Move to adopt Resolution 2015 -100 being a resolution accepting the Feasibility Report for 2016 State Aid Street Overlay Improvements, City Project No. 1605, and ordering the Public Improvement Hearing beginning at 7:00 p.m. on March 7, 2016. Attachments: Resolution 2015 -100 Feasibility Report Map RESOLUTION NO. 2015 -100 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, the City Council of Columbia Heights is proposing to rehabilitate select state aid streets in the city that have not been rehabilitated under the street program, and WHEREAS, pursuant to Resolution No. 2015 -80, a report has been prepared by the City Engineer with reference to the Program, and the following street(s): Jefferson Street, 40th Avenue to 44th Avenue WHEREAS, the report provides information regarding whether the proposed project is feasible, necessary and cost - effective, and Said report is hereby received by the City Council of Columbia Heights on December 14, 2015. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. The Council will consider the improvement of such streets in accordance with the report and the assessment of abutting or benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $286,585. 2. A public hearing shall be held on such proposed improvement on the 7th day of March, 2016, in the City Council Chambers at 590 40th Avenue N.E. at 7:00 P.M. and the City Clerk shall give mailed and published notice of such hearing and improvement as required by law. ORDER OF COUNCIL Passed this 14th day of December, 2015 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk /Council Secreta CSI City of Columbia Heights FEASIBILITY REPORT FOR 2016 STREET REHABILITATION IMPROVEMENTS: M.S.A.S. OVERLAY CITY PROJECT 1605 DECEMBER, 2015 ENGINEERING DEPARTMENT 63738 th Avenue NE, Columbia Heights, MN 55421 763 - 706 -3700 000 763- 706 -3701 (Fax) STREET REHABILITATION IMPROVEMENTS COLUMBIA HEIGHTS, MINNESOTA M.S.A.S. OVERLAYS PROJECT NUMBER 1605 LOCATION: JEFFERSON STREET, 40TH AVENUE TO 44TH AVENUE This feasibility study includes an analysis of proposed street rehabilitation on the municipal state aid system. IMPROVEMENTS: Mill and Overlay- Random curb and gutter replacement as required, milling of the existing bituminous surface and placement of new 3" bituminous pavement. Pedestrian ramp and hazardous sidewalk replacement on Jefferson Street. Utility Construction — No major water main, sanitary sewer or storm sewer replacement is proposed on the mill and overlay streets. INITIATION: City Council in accordance with the Street Rehabilitation Policy. OWNERS The location of each street is described below and shown on the attached map. BENEFITTING: The total number of parcels is 94. OWNERS Mill and Overlay ABUTTING 1. Jefferson Street, 40th Avenue to 41St Avenue (23) OR 2. Jefferson Street, 41" Avenue to 42nd Avenue (27) IMPACTED: 3. Jefferson Street, 42nd Avenue to 43rd Avenue (22) 4. Jefferson Street, 43rd Avenue to 44th Avenue (22) ISSUES: The following is a study of the key project issues. Mill and Overlay - Municipal State Aid Streets The proposed construction would consist of milling off 3" of bituminous pavement across the entire street surface and paving a new 3" bituminous mat. Existing concrete curb and gutter would be preserved except for sections with poor drainage or are considered to be a hazard to the snowplows. Sidewalk would be replaced as needed to comply with ADA pedestrian ramps and to replace sections considered hazardous under the City's policy. Utilities No major water main, sanitary sewer or storm sewer replacement is proposed on the mill and overlay streets. New rings and castings will be installed on manhole and catch basin structures as needed. New gate valve tops will be installed as needed. Roadway construction will include minor modifications to existing water main, sanitary and storm sewer utility surface structures in order to meet proposed finish grades. FEASIBILITY: The proposed improvement project is necessary to provide consistency with the street rehabilitation policy, cost - effective with the inclusion of partial city funding, and technically feasible as prescribed in the construction recommendations found elsewhere in this report. The project and project elements should be implemented as proposed in this study. The improvements, once completed, will provide a benefit to the properties served. SCHEDULE: Construction is scheduled to begin in late spring of 2016, with substantial completion occurring in the summer of 2016. Council receives Feasibility Report and orders Public Improvement Hearing Dec 14, 2015 Public Informational meeting prior to Public Improvement Hearing Feb 18, 2016 Public Improvement Hearing and Council orders Public Improvement Project Mar 7, 2016 Council Approves Plans and Specifications, Authorizes Advertisement for Bids Mar 14, 2016 Bid Opening Apr 19, 2016 Council Awards Contract Apr 25, 2016 Begin Construction May, 2016 Construction Completed Aug, 2016 FINANCING: Financing would be a combination of assessments to benefitted properties, infrastructure fund including Municipal State Aid funds, and utility funds. The estimated construction cost is as follows: Proposed Infrastructure/ Type of Construction Assessments MSAS Fund Mill and Overlay $161,125 $61,400 Engineering and Administration $20,230. The estimated costs shown above are for a typical overlay on a residential street. The costs do not reflect the proposed 3" deep mill and overlay costs on the wider state aid streets. Percentages proposed to be assessed for street rehabilitation are consi.stent with the policy followed under each of the prior street rehabilitation zones. In 2014, the City Council amended the assessing policy to include MSA streets, and to subsidize properties along MSA streets, based on traffic volume of the street. Jefferson Street has 1,650 ADT. Properties will be subsidized 15 %. The assessments reflect a flat fee of 10% of the construction cost included in the amount to assess for a portion of the Engineering and Administration costs. Utility work performed as part of the overlay project will be paid for from the appropriate utility fund. ASSESSMENT: Assessments will be in accordance with the City's Street Rehabilitation Ordinance and past practice. Assessments can be based on a per foot basis or a parcel basis. Following the other Zones assessment policies, assessments would be on a Street and Avenue parcel basis. A Street assessment would be at the developed rate for the particular rehab strategy while Avenue assessments would be at approximately 1/3 of the street rate extending % block in either direction of the Avenue. This assumes that all parcels benefit equally for the strategy in front of their property or abutting it, in the case of the Avenue. 4 2016 IMPROVEMENT PROGRAM COLUMBIA HEIGHTS, MINNESOTA ESTIMATED ASSESSMENTS - PROJECT NO. 1605 M.S.A.S. STREET REHABILITATION PROGRAM (Section 35, T30N, R24W) I. MILL AND OVERLAY The estimated costs are for a typical overlay on a residential street. The costs do not reflect the actual 3" deep mill and overlay costs on the wider state aid streets. Estimated Cost: $222,525. Assessable Construction Cost: $161,125. Estimated Assessed Cost per Parcel* C, I, M F Street: $2,060.40 C, I, MF Avenue: $ 686.80 Estimated Assessed Cost per Parcel* Residential Street: $1,751.34 Residential Avenue: $ 583.78 *Estimated cost include 15% M.S.A.S. subsidy / aid 6k4 \\) 2 T® � 2 uj �U) n \ (\� Ea }\ 0y ee a }. \\ \0 . ] .�. �©w2 k ± _. CjOf F > LLJ — a) ®� 3 7® O 4 3 = o! » 0 / / \ \i / / ( ƒF -- 9 / aid 6k4 \\) 2 T® � 2 uj �U) n \ (\� Ea }\ 0y ee a }. \\ \0 . ] .�. CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7L MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: RESOLUTION 2015 -101 APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR STINSON BOULEVARD IMPROVEMENTS DEPARTMENT: PUBLIC WORKS CITY MANAGER'S APP . OVAL: ,` BY /DATE: KEVIN HANSEN / DECEMBER 9, 2015 jV BY /DATE: ,�7 ' BACKGROUND: A cooperative agreement was approved on June 22nd with the City of St. Anthony for street and utility improvements on Stinson Boulevard from 37th Avenue to north of 40th Avenue. This section of Stinson Boulevard is the municipal boundary between the two cities. The scope of work involves replacing the concrete street with a bituminous section along with utility improvements in each city, proposed for 2016 construction. A Public Improvement Hearing for the Stinson Boulevard Rehabilitation Project will be on held on March 7, 2016. STAFF RECOMMENDATION: The proposed water main, sanitary and storm sewer construction remain essentially unchanged from the work presented in the feasibility report. Overall, the plans include: 1.a Street Section The centerline of Stinson Boulevard represents the municipal boundary between the cities of Columbia Heights and St. Anthony. Stinson Boulevard will be reconstructed with a bituminous street section to a 37 -foot wide, 10 -ton bituminous street with concrete curb and gutter. 1.b Trail Section The plans include an 8- foot wide bituminous trail placed at the back of curb from 37th Place to 40th Avenue. 1.c Street Lighting Decorative street lighting will be added within the right -of -way from 37th to 40th Avenues. Staff is proposing to utilize LED street lamps anticipated to be available from Xcel Energy mid -2016. 2. Utilities Replacement The plans include the following: Water Main: The 6 -inch water main that serves the Columbia Heights side of the street will be replaced with an 8 -inch water main. New services would also be provided in the project area. Storm Sewer: New storm sewer is sized for 10 -year storm events consistent with State Aid requirements and our Water Resource Plan requirements. New catch basins and manholes will also be placed throughout the project area. Sanitary Sewer: A cast iron sewer forcemain from the Silver Lake Lift Station that discharges into a manhole near 3900 Stinson Boulevard will be replaced with either a PVC or polyethylene pipe. The gravity line in this area will be lined under a separate contract. City of Columbia Heights - Council Letter The Engineer's Estimate for the utility portion of the work is: Water Construction Fund $ 180,000 Sanitary Sewer Construction Fund $ 60,000 Storm Sewer Construction Fund $ 255,000 Page 2 The City of St. Anthony is the lead on the project. The St. Anthony Improvement Hearing process bids the project prior to the Improvement Hearing. Further, with actual bid prices, they hold the Assessment Hearing at the same time as the Improvement Hearing. Final plans and specifications for the Street Rehabilitation Improvements, including utilities, are complete. The bid opening is scheduled for January 27, 2016 with City Council award on March 14, 2016. RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2015 -101, there being ample copies available to the public. Recommended Motion: Move to adopt Resolution 2015 -101 approving Plans and Specifications and ordering Advertisement for Bids for Stinson Boulevard Improvements, City Project 1508. ATTACHMENTS: Resolution 2015 -101 RESOLUTION NO. 2015 -101 A resolution of the City Council for the City of Columbia Heights, Minnesota, Whereas, pursuant to a Joint Powers Agreement (JPA) passed by the Council on June 22, 2015 the City of St. Anthony has prepared plans and specifications for Reconstruction of Stinson Boulevard from 37th Avenue to 150 feet north of 40th Avenue; Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. Such plans and specifications identified as 2015 Street Rehabilitation, Stinson Boulevard from 37th to 150 feet north of 40th Avenue, City Project Number 1508 are hereby approved. 2. The City of St. Anthony shall prepare and cause to be inserted in the official paper and in a trade journal an advertisement for bids upon making of such improvement under such approved plans and specifications. The advertisement shall be published a minimum of three weeks prior to the bid opening, shall specify the work to be done, shall state that bids will be received by representatives of the City Council of St. Anthony and Columbia Heights until 10:00 a.m. on Wednesday, January 27, 2016 at which time they will be publicly opened at the place designated, will then be tabulated and will be considered by the Columbia Heights Council on Monday, March 14, 2016 in the Council Chamber. 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, bid bond, or certified check payable to the City of Columbia Heights for 5 percent of the amount of such bid. ORDER OF COUNCIL Passed this 14th day of December, 2015 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest Katie Bruno, City Clerk /Council Secretary �,� COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7M MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: RESOLUTION 2015 -102 DESIGNATING "NO PARKING" ON THE WEST SIDE OF STINSON BOULEVARD FROM 37TH AVENUE NE TO 150 FEET NORTH OF 40TH AVENUE DEPARTMENT: PUBLIC WORKS CITY MANAGER'S APPROVAL: BY /DATE: KEVIN HANSEN / DECEMBER 7, 2015 BY /DATE: /,,7 ter^ BACKGROUND: A cooperative agreement was approved on June 22nd with the City of St. Anthony for street and utility improvements on Stinson Boulevard from 37th Avenue to north of 40th Avenue. This section of Stinson Boulevard is the municipal boundary between the two cities. The scope of work would involve replacing the concrete street with a bituminous section along with utility improvements in each city, proposed for 2016 construction. The three lane roadway does not provide adequate width for parking on both sides of the street, and is currently signed for no- parking. In order to expend Municipal State Aid funds on the construction, a no- parking resolution must be designated by the City Council. MnDOT plan approval of the proposed construction as a Municipal State Aid Street project is also conditioned upon parking restrictions. The City of St. Anthony has approved a similar resolution for their side of the street. The Traffic Commission reviewed and concurred with the "No Parking" designation on the west side of Stinson Boulevard at their meeting on December 7, 2015. STAFF RECOMMENDATION: Staff recommends designating "No Parking" on the west side of Stinson Boulevard from 37th Avenue NE to 150 feet north of 40th Avenue to comply with State Aid rules for the 2016 Street and Utility Improvement project. RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2015 -102, there being ample copies available to the public. Move to adopt Resolution 2015 -102 designating "No Parking" on the west side of Stinson Boulevard from 37th Avenue NE to 150 feet north of 40th Avenue. ATTACHMENT(S): Resolution 2015 -102 RESOLUTION NO. 2015 -102 A resolution of the City Council for the City of Columbia Heights, Minnesota, Whereas, the City of Columbia Heights has planned improvements to Stinson Boulevard NE, State Aid Route No. 113 -113, between 37th Avenue NE and 190 feet north of 40th Avenue NE; and Whereas, the City of Columbia Heights has ordered the project for the 2016 Street and Utility Improvements; and Whereas, the City of Columbia Heights 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, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT The City of Columbia Heights shall prohibit the parking of motor vehicles on the west side of Stinson Boulevard NE from 37th Avenue NE to 190 feet north of 40th Avenue NE. ORDER OF COUNCIL Passed this 14th day of December, 2015 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest Katie Bruno, City Clerk /Council Secretary CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7N MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: ADOPT RESOLUTION 2015 -103 BEING A RESOLUTION TO USE AN ALTERNATIVE METHOD TO DISSEMINATE BIDS AND REQUESTS DEPARTMENT: Public Works CITY MANAGER'S PP VAL: BY /Date: Kevin Hansen / December 9, 2015 BY /Date: i Background: Statutory requirements now allow cities to use its website or recognized industry trade journals as an alternative to publicize solicitations of bids, requests for information, and requests for proposals. The alternative means must be in substantially the same format and for the same period of time as a publication would otherwise be required under Minnesota statute. Analysis /Conclusions: Staff recommends using the City of Columbia Heights website as an alternative means to disseminate solicitations of bids, requests for information, and requests for proposals for construction and maintenance projects. For the first six months after this designation, the City will continue to publish solicitations of bids, requests for information, and requests for proposals in the Sun Focus newspaper and the publication will also indicate where to find the designated alternative method. Recommended Motion: Move to waive the reading of Resolution 2015 -103, there being ample copies vailable to the public. Recommended Motion: Move to adopt Resolution 2015 -103 being a resolution to use an alternative method to disseminate bids and requests. Attachment: Resolution 2015 -103 MN statute 331A.03 Subd. 3 RESOLUTION NO. 2015 -103 A resolution of the City Council for the City of Columbia Heights, Minnesota, Whereas, Minn. Statute § 331A.03 Subd. 3(b), allows a city to use its web -site or recognized industry trade journals as an alternative to disseminate solicitations of bids, requests for information and requests for proposals; Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT That from this day forward, the City of Columbia Heights may use the Columbia Heights website, www.columbiaheightsmn.gov, as an alternative means to disseminate solicitations of bids, requests for information, and requests for proposals for city construction, maintenance, and other improvement projects. That for the first six (6) months after this designation of an alternative means of dissemination, the city shall continue to publish solicitations of bids, requests for information and request for proposals, in the same official newspaper of the city in addition to the alternative method and that the publication in the official newspaper must indicate where to find the designated alternative method. That any dissemination by alternative means must be in substantially the same format and for the same period of time as a publication would otherwise be required under Minn. Statute § 331A.03 Subd. 3. ORDER OF COUNCIL Passed this 14th day of December, 2015 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk /Council Secretary MINNESOTA STATUTES 2015 331A.03 331A.03 WHERE NOTICE PUBLISHED. Subdivision 1. Generally. Except as provided in subdivision 2, a public notice shall be published in a qualified newspaper, and except as otherwise provided by law, in one that is likely to give notice in the affected area or to whom it is directed. When a statute or other law requires publication in a newspaper located in a designated political subdivision or area and no qualified newspaper is located there, publication shall be made in a qualified newspaper likely to give notice unless the particular statute or law expressly provides otherwise. If no qualified newspaper exists, then publication is not required. Subd. 2. Exception; certain cities of the fourth class. A public notice required to be published by a statutory or home rule charter city of the fourth class located in the metropolitan area defined in section 473.121, subdivision 2, is not required to be published in a qualified newspaper if there is no qualified nondaily newspaper of general circulation in the city, provided the notice is printed in a newsletter or similar printed means of giving notice that is prepared by the city and either mailed or delivered to each household in the city. Subd. 3. Alternative dissemination of bids and requests. (a) In addition to or as an alternative to the statutory requirements for newspaper publication, a political subdivision may disseminate solicitations of bids, requests for information, and requests for proposals by a means authorized in paragraph (b), if the political subdivision simultaneously publishes, either as part of the minutes of a regular meeting of the governing body or in a separate notice published in the official newspaper, a description of all solicitations or requests so disseminated, along with the means by which the dissemination occurred. (b) A political subdivision may use its Web site or recognized industry trade journals as an alternative means of dissemination. A dissemination by alternative means must be in substantially the same format and for the same period of time as a publication required by this chapter. (c) For the first six months after a political subdivision designates an alternative means of dissemination, it must continue to publish solicitation of bids, requests for information, and requests for proposals in the official newspaper in addition to the alternative method. The publication in the official newspaper must indicate where to find the designated alternative method. After the expiration of the six -month period, an alternative means of dissemination satisfies the publication requirements of law for solicitation of bids, requests for information, and requests for proposals. History: 1984 c 543 s 22; 1991 c 53 s 1; 2004 c 182 s 12,13 Copyright Oc 2015 by the Revisor of Statutes. State of Minnesota. All Rights Reserved. CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 70 MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: FINAL COMPENSATING CHANGE ORDER AND FINAL PAYMENT FOR MISCELLANEOUS CONCRETE PROJECT NO. 1400 DEPARTMENT: Public Works CITY MANAGER'S APPROVAL: BY /DATE: Kevin Hansen / December 7, 2015 BY /DATE: /oZ BACKGROUND: The contractor has completed the 2014 Miscellaneous Concrete Repairs and Installations. This annual program consisted of curb and gutter, driveway, and sidewalk improvements /repairs throughout the city. The change order consists of work approved by the City Council, as well as typical work added during Phase 2 of the contract. A spreadsheet with the fund distribution is attached. STAFF RECOMMENDATION: The Miscellaneous Concrete Program is set up on an annual basis with a preliminary estimate of quantities for the entire year. The quantities of work will vary from year to year based upon actual work performed in the two phases (late spring and fall). Staff recommends approval of the compensating change order and final payment to SpeckTacular Companies, Inc. and acceptance of the work. A copy of the change order and the Engineer's Report of Final Acceptance is attached. RECOMMENDED MOTION(S): Move to approve the final compensating change order and accept the work for 2014 Miscellaneous Concrete Repairs and Installations, City Project No. 1400, and authorize final payment of $15,918.75 to SpeckTacular Companies, Inc. of Elko, MN. ATTACHMENTS: Change Order Engineer's Report of Final Acceptance Fund Distribution Spreadsheet CITY OF COLUMBIA HEIGHTS CONSTRUCTION PAYMENT VOUCHER ESTIMATE NO. FINAL DATE: December 1, 2015 PERIOD ENDING: July 31, 2015 CONTRACT: 2014 Miscellaneous Concrete Repairs and Installations NO. 2600 PROJECT NO. 1400 TO: SpeckTacular Companies, Inc. 5595 270th Street East Elko, MN 55020 952 -461 -5255 A. Original Contract Amount ...... ........... ....... $21,066.50 B. Total Addition $2,460.00 C. Total Deduction $0.00 ........... . .......... . . . . ........ . .............................. . ..................................... . . . . . , . .. , . . . . . ................................................... D. TOTAL CONTRACT AMOUNT $23,526.50 E. TOTAL VALUE OF WORK TO DATE $23,476.75 F. LESS RETAINED (0 %) $0.00 G. Previous Payment(s) ............................ H. TOTAL APPROVED FOR PAYMENT THIS VOUCHER I. TOTAL PAYMENTS INCLUDING THIS VOUCHER APPROVALS ....................... ($7,558.00) $15,918.75 ............................ $23,476.75 Pursuant to our field observa ions, I hereby recommend for payment the above stated amount for work perl rmed th ough July 31. 2015 . Signed by: , KeX HanserL P.0 is Works Dirdctor Signed by: SpeckTacular Companies, Inc. Dat Date CITY OF COLUMBIA HEIGHTS 2014 MISCELLANEOUS CONCRETE REPAIRS AND INSTALLATIONS CITY PROJECT NO. 1400 FINAL PAYMENT NO. ITEM BASE BID 1 Remove curb and gutter 2 Construct concrete curb and gutter 3 Storm water curb opening 4 Construct mod. D4 -12 concrete curb and gutter 5 Construct V6 curb 6 Remove street/alley /apron 7 Construct 8" concrete street/alley /apron 8 Remove driveway /apron 9 Construct 6" concrete driveway /apron 10 Remove sidewalk 11 Construct 4" concrete sidewalk 12 Truncated dome panel TOTAL BASE BID UNIT QUANT. UNIT PRICE AMOUNT L.F. 304.0 $8.00 $2,432.00 L.F. 304.0 $21.00 $6,384.00 Ea. 3.0 $100.00 $300.00 L.F. 260.0 $23.00 $5,980.00 L.F. 40.0 $30.00 $1,200.00 S.F. 450.0 $3.00 $1,350.00 S.F. 450.0 $7.25 $3,262.50 S.F. 70.0 $3.00 $210.00 S.F. 70.0 $7.25 $507.50 S.F. 199.0 $3.00 $597.00 S.F. 295.0 $4.25 $1,253.75 S.F. - $60.00 $0.00 $23,476.75 CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA ENGINEER'S REPORT OF FINAL ACCEPTANCE 2014 MISCELLANEOUS CONCRETE REPAIRS AND INSTALLATIONS CITY PROJECT NUMBER 1400 December 9, 2015 TO THE CITY COUNCIL COLUMBIA HEIGHTS, MINNESOTA HONORABLE MAYOR AND CITY COUNCIL MEMBERS: This is to advise you that I have reviewed the work under contract to SpeckTacular Companies, Inc. The work consisted of curb and gutter, alley, driveway, and sidewalk improvements /repairs throughout the City. The contractor has substantially completed the project in accordance with the contract. It is recommended; herewith, that final payment be made for said improvements to the contractor in the amount as follows: ORIGINAL CONTRACT PRICE $21,066.50 CHANGE ORDERS 2,460.00 FINAL CONTRACT AMOUNT $23,526.50 FINAL WORK APPROVED $23,476.75 ALL PRIOR PAYMENTS ( 7,558.00) BALANCE DUE $15,918.75 Sincerely, CITY OF COLUMBIA HEIGHTS Kevin R. Hansen City Engineer C7 z 0 z D LL w F- w w U Z O U U) 7 O O Z J ~ �U ww 0 0 o O o 0 0 0 0 0 (n o (O F- 0 0 O 0 0 O (O O (n o I� O r < z N V O O O O N O h ISM O (D Cl) 00 O 00 o (O (0 O O (O 6f3 P- 0 O "1: c') M Ol N M N NEfl ) L N � U w w Z co 44 O ri 00 o O 0 0 o 0 O 0 o 0 o m p (n o o p j OO NV �� hf� (nN d c U F- o aE Z o 0 D Y ° O > a a` z a D c� 00 00 0 00 F- 00 O O o Z (D N O O M `� M co O N �i 0 00 00 (A. 60. r (` O 0) (0 a 63 613 63 �- o > Z a O N Cl) O N M 00 O N O N D N N p Oo ♦- O .90 Z o °o w v O co M M E 2 �o o a F- (0 � o ZI a cY Z) O 00 0 00 F- o 0 o rn Z o 0 0 m M D V M N V O 64 N a < ER (f3 m a F- N U 99 Z a O co O Cl) Z) O 0 0 O O O O F- O O O O O .2 O j00 O zLO ON N e- N O O �� 9 2 LO O NO ` N a (f3 fR F- a 00 00 Z 04 00 a o0 � N O O O O O O O O (O (O O F O O O (O O (O O ti ti N Z (O N O N O I-- O 00 2 M D co 00 0 0 O 00 Cl) M V) V O co 00 O ('7 N (O M (O N C 613 693 V3 N Efl b9 69 to (` O li a (3 f 69 _ Z O V O O O O �� O 0 0 I �OM,� NN O O O O O O M O LO O (n O w O O O 00 O N O N O N O F-U CO CD cl) pM CO r.- M 1- M V Z N O N O z a r 6s Efl 03 6f3 Uf 6G, E9 Efl 613 to 1s3 to C 0 2 N N N Y Z O U F- m o > iC o U y CO :o V) U N CD 0) N C U 7 01. O m 6 m U U Y U CL E m U U O N O 3 O C 7 U 0) E> .� co '�- (o .� V (0 to z Q>)2 3 22 '>2 > 2 >'2 m 0 F � 4 ,� g V 2 V. — CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7P MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Re -Issue Rental License DEPARTMENT: Fire CITY MANAGER'S APPR VAL: BY /DATE: Gary Gorman BY /DATE: -- i f STAFF RECOMMENDATION: The matter of the revocation of the license to operate a rental unit(s) within the City of Columbia Heights against the following properties for failure to meet the requirements of the Property Maintenance Codes has been resolved. RECOMMENDED MOTION(S): Move to issue a rental- housing license to Jordan Gall to operate the rental property located at 3906 Tyler Street N.E. in that the provisions of the Property Maintenance Code have been complied with. ATTACHMENTS: CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT AGENDA ITEM NO. 7Q MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: LICENSE AGENDA DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /Date: December 9, 2015 BY /Date: 14 BACKGROUND /ANALYSIS Attached is the business license agenda for the December 14, 2015 Council meeting. This agenda consists of applications for 2016 Contractor Licenses, and other various 2016 Business Licenses. At the top of the license agenda you will notice a phrase stating *Signed Waiver Form Accompanied Application. This means that the data privacy form has been submitted as required. If not submitted, certain information cannot be released to the public. RECOMMENDED MOTION: Move to approve the items as listed on the business license agenda for December 14, 2015 as presented. 1 ,, City of Columbia Heights - Council Letter TO CITY COUNCIL December 14, 2015 *Signed Waiver Form Accompanied Application CONTRACTOR'S LICENSES -2016 BLDG *Steinkraus Plumbing Inc 112E5 1h St, Chaska $60 *Bruno Professional Glass 2047 No Park Dr, St Paul $60 *Wenzel Htg & AC 4145 Old Sibley Hwy, Eagan $60 *Gilbert Mechanical 4451 W 76th St, Edina $60 *Fireside Hearth & Home 7571 215th St W, Lakeville $60 SAC Wireless 1501 E Woodfield Rd, Schmaumber, IL *Major Mechanical 11201 86th Ave No, Maple Grove $60 *Ryan Co 50 So. 10th St, Mpls $60 *T & S Htg & AC 8617 Ironwood Ave So, Cott Gr $60 *Harris Contracting 909 Montreal Cir, St Paul $60 *C & S Blacktopping 14435 Northdale Blvd, Rogers $60 *Air Mechanical 16411 Aberdeen St NE, Ham Lake $60 Plumbing Service Ctr 14855 Aberdeen St, Andover $60 *PPS Plumbing LLC 985 Century Ave N, Maplewood $60 Jimbo's Plumbing 1630 Fairway Dr, Columbia Hts $60 *Yale Mechanical LLC 220 W 81St St, Bloomington $60 *Eco Mechanical 16159 Marble st NW, Ramsey $60 *YTS Co 14310 Northdale Blvd, Rogers $60 *Precision Landscape /Tree 50 S Owasso Blvd E, Little Can $60 *Nature's Trees 8000 Powell Rd. Hopkins $60 *S & S Tree 405 Hardman Ave, So St Paul $60 *Western Tree Service 23712 150th St, Paynesville $60 GAMES OF SHILL -2016 *Mendota Valley Amuse for VFW & Jimmy's Pool Hall CIGARETTE/TOBACCO LIC *Hot Market 5011 University Ave *University Auto 5257 University Ave SMOKE SHOP *Smoke & Vape Inc. 2311 37' h Ave (Old Top Value Tobacco Shop) *Fouad's Inc 4110 Central Ave $210 $300 $300 $300 $300 US BENCH *US Bench Corp 3300 Snelling Ave, Mpls $400 *Benchmark 8844 Central Ave NE, Blaine $300 $60 Page 2 City of Columbia Heights - Council Letter *El Tequila 4005 Central Ave $6,700 WINE /BEER LICENSE *Karta Thai 3800 Central Ave $2,400 MASSAGE BUS & INDIVIDUAL *Hart Lake Massage 3813 Hayes St $500 *Jennifer Pyper -Muno 3813 Hayes St $100 Page 3 In N U () U O) L -p a) � a) E > o O F-4 w Mw w � Q N L Z W N ) O w a) z -0 c `� o N �oz A z 3 v� w _ ::5 H > a) g m � U 0 U LL O L) -C F- U a) 4- t LO 0 4- �— C) N :3 N N N M N m co L (D N CSI 00 I` 00 r- N a) a1 L a) U � (6 o C _ LL O (D (n cv O E m a) O z W cn _rZ: c o W z o U LO `~ F- O W = Q OW U 0 Z W � W z U Q ~ 0O Z o O z L O z = (D C7 W _ Q O U Lj- 0 v M >O a oo T- � `— E (6 m ) a) > -C Y +� C: N co w * E (D CD a H a Ww x> 0 F:� U H * * as * * a q * * 0 0 * * U �H U > I * * H O Ooo * + a4 11 Ln U ' -4 O to * * E 4 rl * * in H U (7 * * a) l0 * * M •ri O * * U a * * z rn i * H In * * * * * -K. 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I x, co UN N U I W w F H W H W W �D[4]aW WR:F40UP�DX N W I U ZH < co I z F 4 N a4 N Q4 N P S F-4 0 (Y (Y P S 0 Z H [I M Z W W a a <0 U W 1 W 0 FCQHFCFCH44P<<9HF <W W WHW MZH0Za a U a z Q I 0U04 WWNU0< M U U U 44 U$ M a U)aaS W W U M H 44 U H 44 Wx z I U FC, C, o a a N CH COLUMBIA HEIGHTS AGENDA SECTION Public Hearing ITEM NO. 8A MEETING DATE December 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Public Hearing and First Reading of Ordinance 1624, a Cable Television Franchise Ordinance DEPARTMENT: Administration CITY MANAGER'S APPROVAL: BY /DATE: Kelli Bourgeois 12/10/15 BY /DATE: BACKGROUND: Introduction Following the submission of an application for a cable television franchise for the City of Columbia Heights (the "City "), the above - entitled matter initially came before the City for a public hearing on March 23, 2015. Said public hearing was held open through March 27, 2015, for the purpose of allowing additional written public comments. Following the public hearing, the City Staff prepared a detailed report entitled "Staff Report on CenturyLink Cable Franchise Application" (the "Report "). The City received and filed the Report and directed City staff to a negotiate cable television franchise with Centurylink. City staff negotiated a cable television franchise with Centurylink and it is now before the Council for consideration. The City must hold a public hearing on the proposed franchise ordinance and adopt written findings related to its final decision. Supporting Information On March 12, 2015, the City received a cable franchise application from Centurylink. Comcast Cable currently has a non - exclusive franchise agreement with the City, which means the City Council may grant additional franchises to provide cable service in the City. A public hearing on the application was held on March 23, 2015, and additional written comments from the public were accepted through March 27, 2015. Following the public hearing, staff prepared a Report, which recommended that the City receive and file the Report and direct staff to negotiate a cable franchise with CenturyLink, consistent with the Report. On May 11, 2015, the City adopted the recommendation. This action did not approve a franchise. The City's outside attorney, Mike Bradley, Bradley Hagen & Gullikson, LLC, in consultation with Kelli Bourgeois, Assistant to the City Manager, engaged in cable franchise negotiations with CenturyLink. The attached cable franchise is the product of those negotiations. In reviewing the CenturyLink cable franchise, there are two primary issues to consider. The first is whether federal law preempts Minnesota's 5 -Year Build Statute. Minnesota Statues Section 238.084, subdivision 1(m) requires all initial franchises to have a provision that requires a cable operator build out its cable system at a rate of 50 plant miles per year and that its cable system be substantially complete within 5 years. As the Report indicated, CenturyLink claims that this 5 -Year Build Statute is an unlawful barrier to entry and is preempted by federal law and an FCC decision referred to as the 621 Order. The Report also indicated that there is no case law in Minnesota directly addressing preemption of the 5 -Year Build Statute. The Report concluded that CenturyLink has a good faith basis on its preemption claim and is willing to indemnify the City related to any litigation surrounding the grant of a franchise to CenturyLink. Centurylink refused to incorporate the language of the 5 -Year Build Statute in the proposed franchise, based on its preemption argument. As described below, the proposed CenturyLink franchise ordinance has provisions for a reasonable City of Columbia Heights - Council Letter Page 2 build -out of the city. The proposed franchise ordinance also has provision for defense and indemnification of the City regarding this issue. The next issue is whether the CenturyLink franchise contains a reasonable build -out schedule. The franchise ordinance recognizes that CenturyLink has already constructed a legacy communications system throughout the City, which is capable of providing telephone and internet service. The build -out provisions in the franchise are related to upgrades of the legacy system to make it capable of providing cable service to all city residents. The proposed CenturyLink Franchise addresses build -out as follows: • Complete Equitable Build -Out. Goal is to build -out the entire city over 5 -year term, based on market success, with a significant investment targeted to areas below the median income in the city. Initial Minimum Build -Out Commitment. 15% of the city over two years. o CenturyLink must make its best effort to complete the initial deployment in a shorter period of time. o Equitable Deployment to households in the City. o Must include a significant number of households below the medium income of the City. o CenturyLink permitted to serve more households than the initial commitment. Quarterly Meetings. Starting January 1, 2016, CenturyLink must meet with the City and show to the City's satisfaction: o Number of households capable of being served and actually served. o Compliance with anti - redlining requirements. o Maps and documentation "showing exactly where within the City the Grantee is currently providing cable service." • Additional Build -Out Based on Market Success. Starting January 1, 2016, the CenturyLink build - out commitment will increase if its penetration rate is at least 27.5% in the areas that it is offering service. o Example: If CenturyLink is offering service to 60% of the City and CenturyLink has penetration of 30% in that area, then the build -out commitment will increase by 15 %, to cover 75% of the city. o Additional build -out commitment continues until all households are served. Line Extension. No initial mandatory line extension, unless CenturyLink becomes the dominate cable provider. Then the City decides CenturyLink's build -out schedule, including a density requirement that is the same or similar to Comcast's density requirement. The City may consider whether the Initial Minimum Build -Out Commitment of 15% of the City over two years is reasonable. CenturyLink claimed in its application that it initially would be providing service to a greater portion of the City. During negotiations however, CenturyLink was concerned about having too high a commitment in the franchise ordinance and that cities in Minnesota and elsewhere would use a greater commitment as a new standard. CenturyLink refused to increase the Initial Minimum Build -Out Commitment above 15 %. However, the provisions related to Quarterly Meetings and Additional Build -Out Based on Market Success are designed to quicken and increase CenturyLink's initial Build -Out Commitment. The franchise also has provisions requiring that residents of the City be included in an equitable initial build commitment and that a significant number of households below the medium income of the city also be included in the initial build -out. CenturyLink must also use its best efforts to complete its initial build faster than two years. City of Columbia Heights - Council Letter Page 3 Another issue related to the reasonable build -out is whether the penetration rate triggering additional build - out is reasonable. CenturyLink claims that it needs a penetration rate of 27.5% in order to commit to an additional mandatory build in the city. This penetration number is based on internal CenturyLink return on investment models. Given Comcast's penetration rate in the City is around 40 -50 %, a penetration rate of 27.5% may be difficult to obtain and, therefore, it is possible that CenturyLink may not be required to build - out more than its initial commitment. Economic redlining or "cherry picking" was identified as a concern through the public hearing process. As the Report noted, cherry picking is prohibited by the Federal Cable Act. See 47 U.S.C. § 541(a)(3). The proposed CenturyLink franchise prohibits cherry picking, identical to the Comcast franchise. To ensure compliance, CenturyLink has an additional $500 per day penalty /liquidated damage for violating the build -out and economic redlining provisions of the Franchise. The Report also described the State's level playing field statute, which requires competitive cable franchises not to be more favorable or less burdensome than an incumbent's franchise as it relates to franchise fees, support of public, educational, and governmental access television and the area served. CenturyLink is required to pay a franchise fee of 5% of its Gross Revenues (Identical to Comcast Franchise). The Franchise Area is the entire city (Identical to Comcast Franchise). The Public, Educational, and Governmental ( "PEG ") Access Requirements of the CenturyLink franchise meet, and in places exceed, Comcast's franchise commitments. The CenturyLink PEG commitments are summarized as follows: • Number of Access Channels. CenturyLink will provide 4 Access Channels (same number of Access Channels as Comcast). • Format of Access Channels. CenturyLink will provide all 4 Access Channels in HD if the City sends them in HD format (Comcast will provide up to 2 Access Channels in HD over time). • Electronic Programming Guide. CenturyLink will have similar requirement as Comcast. • Channel Placement. CenturyLink will make all Access Channels accessible at Channel 21 through the "Columbia Heights Mosaic." The Access Channels will be physically located in the 8000s (Comcast has no mosaic and is required to have all the HD Access Channels located near the broadcast channels). • Public Service Announcements. CenturyLink will allow the City to air PSAs on non - Access channels during periods of unsold /unused air time (Exceeds Comcast's commitment). • Video On- Demand. CenturyLink will provide 25 hours of VOD (Exceeds Comcast's PEG commitment). • PEG Support. CenturyLink will pay a PEG Fee in support of the Access Channels of $.90 adjusted by CPI starting in 2016. (Amount of funding identical to Comcast). Overall, the CenturyLink cable franchise is substantially similar to the Comcast cable franchise in most respects. The following highlights the differences between the two cable franchises: • Term. CenturyLink's Franchise term is 5 years. Comcast's term is 15+ years. • Indemnification of the City. CenturyLink has an additional indemnification commitment that Comcast does not have. City of Columbia Heights - Council Letter Page 4 • Access Channel Commitments. CenturyLink may provide more channels in HD than Comcast. CenturyLink is providing 25 hours of VOD programming, while Comcast is not providing any. PEG support may be used for capital and operational support under the CenturyLink franchise. • Twin Cities Metro PEG Interconnect Network. CenturyLink will provide a network to allow cities throughout the metro area to share live programming with one another. We believe this will be the only such network in the country. • Penalties /Liquidated Damages. CenturyLink franchise has additional damages for violating the Build -Out and Economic Redlining provisions of the franchise that is not in the Comcast franchise. • Build -Out. CenturyLink Franchise has a reasonable build -out commitment based on market success. Comcast does not have a build -out provision, as it built -out the City many years ago. • Line Extension. The CenturyLink franchise does not have an immediate line extension requirement. The City will determine a line extension obligation similar to Comcast's line extension if CenturyLink obtains a 50% penetration level in the City. Comcast has a line extension requirement. STAFF RECOMMENDATION: Since a cable franchise is granted by ordinance, the City must hold a public hearing on the cable franchise ordinance. At a following meeting, the City should take action to approve or deny the proposed franchise ordinance and direct staff to draft findings consistent with its decision. RECOMMENDED MOTION(S): MOTION: Move to close the public hearing and to waive the reading of Ordinance 1624, a Cable Television Franchise Ordinance, there being ample copies available to the public. MOTION: Move to establish the second reading of Ordinance 1624, for Monday, January 11, 2016, at approximately 7:00 p.m. in the City of Columbia Heights Council Chambers. ATTACHMENTS: Findings of Fact Ordinance 1624 Ordinance 1624 Summary CITY OF COLUMBIA HEIGHTS In Re: CenturyLink Cable Franchise FINDINGS OF FACT Application Following the submission of an application for a cable television franchise for the City of Columbia Heights (the "City "), the above - entitled matter initially came before the City for a public hearing on March 23, 2015, at City Hall, 590 40th Ave N.E., Columbia Heights, MN 55421. Said public hearing was held open through March 27, 2015, for the purpose of allowing additional written public comments. Following the public hearing, the City Staff prepared a detailed report entitled "Staff Report on CenturyLink Cable Franchise Application" (the "Staff Report"). The City received and filed the Staff Report and directed City staff to a negotiate cable television franchise with CenturyLink. The City, in furtherance of its obligations as a steward on behalf of consumers of 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 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, in the best interests of the City and its residents. Having held a public hearing on the cable franchise application 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. § 23 8.08, Subd. 1(a); Staff Report, § 4; and City Charter 2. The City published a Notice of Intent to Franchise in the SF Columbia Heights /Fridley, a newspaper of general circulation of the City, on February 20 and 27, 2015. See Staff Report, § 1. 3. CenturyLink submitted a cable franchise application (the "Application ") on March 12, 2015. See Staff Report, § 1. 4. The City held a public hearing on the Application on March 23, 2015, and left the public hearing open until March 27, 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 City's Staff prepared a "Staff Report on CenturyLink Cable Franchise Application" (the "Staff Report) dated May 7, 2015. The Staff Report is incorporated herein by reference. 6. The Staff Report was received and filed by the City on or about May 11, 2015, and the City directed City staff to negotiate a cable television franchise with CenturyLink. 1) 7. City staff negotiated a cable television franchise with CenturyLink and presented it to the City on November , 2015. A cable television franchise ordinance was introduced by the City Council on 2015, and a public hearing on the cable television franchise ordinance was held on , 2015, before the City Council. 9. The impact of competition and the challenges to a new cable operator, like CenturyLink, are identified in the Staff Report. See Staff Report, § 2. 10. 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. 11. The Staff Report identified the issues raised by the public, including the incumbent franchised cable operator, Comcast. See Staff Report, § 9. 12. The City has substantially complied with the state and local cable franchise application requirements identified in the Staff Report. 13. CenturyLink's application substantially complied with state and local cable franchise application requirements identified in the Staff Report. 14. In the cable television franchise, CenturyLink agrees it has constructed a legacy communications system throughout the City that is capable of providing 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. 15. 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. 16. The City 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. 17. 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 1981. See Staff Report, § 3 18. 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 1981. See Staff Report, § 3. 19. 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 competition. The result is undue market power for the cable operator as compared to that of consumers ...." See H.R. Conff, Rep. No. 102 -862, at 1231 (1992); and 621 Order at ¶ 8. F11 20. In the Matter of Section 621(a)(]) 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). 21. 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). 22. 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. 23. 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. 24. The FCC has concluded in the 621 Order that "broadband deployment and video entry are `inextricably linked' and that broadband deployment is not profitable 5 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. 25. 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). 26. Minnesota Statutes, Chapter 238, among other things, requires a level playing field with the incumbent relating to area served (Minn. Stat. § 23 8.08, 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. 27. 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 T¶ 19 -23. CenturyLink has agreed to fully defend, indemnify and hold the City harmless in the event this cable television franchise agreement is legally challenged. See Staff Report, § 11(c). 28. 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. 3 29. 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). 30. 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 every City, including a significant number of households below the minimum income of the City. Quarterly meetings will allow the City and the City 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. 31. 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). 32. 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. See Staff Report, § 10(3)(b). 33. The City has considered the financial, technical, and legal qualifications of CenturyLink. See, e.g., Staff Report, § 10(3). 34. CenturyLink has the financial, technical, and legal qualifications to operate a cable communication system in the City. 35. 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. 36. 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 37. 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). 0 38. The City and its citizens will benefit from facilities based competition in the cable television market. See Staff Report, § 2. 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, and that these Findings of Fact be incorporated therewith. ORDINANCE NO. 1624 CITY OF COLUMBIA HEIGHTS, MINNESOTA CABLE TELEVISION FRANCHISE ORDINANCE Date: December 14, 2015 ORDINANCE NO. AN ORDINANCE GRANTING A FRANCHISE TO QWEST BROADBAND SERVICES, INC., D /B /A CENTURYLINK TO CONSTRUCT, OPERATE AND MAINTAIN A CABLE SYSTEM IN THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, FOR THE PURPOSE OF PROVIDING CABLE SERVICE; 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 Columbia Heights, Minnesota 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 11.101 SHORT TITLE AND DEFINITIONS (A) Short Title. This Franchise Ordinance shall be known and cited as the "CenturyLink Cable Communications Code." (B) 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 used in the present tense include the future tense; words in the plural number include the singular number; words in the singular number include the plural; and the masculine gender includes the feminine gender. Unless otherwise expressly stated, words not defined herein or in the City Code shall be given the meaning set forth in Title 47 of the United States Code, as amended, or Chapter 238 of Minnesota Statutes, as amended and, if not defined therein, the words shall be given their common and ordinary meaning. The word "shall" is always mandatory and not merely directory. The word "may" is directory and discretionary and not mandatory. (1) "Affiliate" means any Person who owns or controls, is owned or controlled by, or is under common ownership and control with the Grantee. (2) "Basic Cable Service" means the lowest priced tier of Cable Service that includes the lawful retransmission of local television broadcast signals and any public, educational and governmental access programming required by this 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). (3) "Cable Service" or "Service" means (1) the one -way transmission to Subscribers of (a) video programming or (b) other programming services; and (2) Subscriber interaction, if any, which is required for the selection or use of such video programming, or other programming services. Cable Service, as defined herein, does not include any service that is only classified as an information service or a telecommunications service under applicable laws, orders and regulations. The City and Grantee shall conform the definition of Cable Service herein to any binding changes in applicable laws and regulations defining Cable Service or to any binding orders or decisions defining Cable Service. Cable Service shall also include any video programming service for which a franchise from a local government is permitted under state law. (4) "Cable System" or "System" means the facility of the Grantee consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide Cable Service, which includes video programming and which is provided to multiple Subscribers within the City, but such term does not include: (1) a facility that only serves to retransmit the television signals of one or more television broadcast stations; (2) a facility that serves Subscribers without using any Rights -of -Way; (3) a facility of a common carrier which is subject, in whole or in part, to the provisions of Title II of the Communications Act, except that such facility shall be considered a System (other than for purposes of 47 U.S.C. § 541(c)) if such facility is used in the transmission of video programming directly to Subscribers, unless the extent of such use is solely to provide interactive on- demand services; (4) an open video system that complies with 47 U.S.C. § 573; (5) any facilities of any electric utility used solely for operating its electric utility system; or (6) a translator system which receives and rebroadcasts over - the -air signals. The term "Cable System" or "System" also includes a cable communications system as defined in Minn. Stat. § 238.02, subd. 3. The foregoing definitions of "Cable System" or "System" shall not be deemed to circumscribe or limit the valid authority of the City to regulate or franchise the activities of any other communications or information system or provider of communications service or information service to the full extent permitted by law. This definition shall include any facility that isa "cable system" under federal law or a "cable communications system" under state law. (5) "Channel" means a portion of the electromagnetic frequency spectrum which is used in a Cable System and which is capable of delivering a television channel (as television channel is defined by the Federal Communications Commission by regulation) whether in an analog or digital format. N (6) "City" means City of Columbia Heights, a municipal corporation, in the State of Minnesota, acting by and through its City Council, or its lawfully appointed designee. (7) "City Code" means the Columbia Heights City Code, as amended from time to time. (8) "City Council" means the governing body of the City. (9) "Drop" means the cable that connects the ground block on the Subscriber's residence or institution to the nearest feeder cable of the System. (10) "Educational Access Channel" or "Educational Channel" means any Channel(s) on the System set aside by the Grantee for educational use by educational institutions, as contemplated by applicable law. (11) "FCC" means the Federal Communications Commission, its designee, and any legally appointed, designated or elected agent or successor. (12) "Franchise" or "Cable Franchise" means this agreement, as may be amended from time to time, any exhibits attached hereto and made a part hereof, and any related ordinance adopted by the City Council approving this agreement and awarding this Franchise to the Grantee for the express purposes specified herein. (13) "Governmental Access Channel" or "Governmental Channel" means any Channel(s) on the System set aside by the Grantee for use by the City or its designee(s). (14) "Grantee" is Qwest Broadband Services, Inc., d/b /a CenturyLink, and its lawful successors, transferees or assignees. (15) "Gross Revenue" means all revenue derived directly or indirectly by the Grantee or its Affiliates, subsidiaries or parent from the operation of the Cable System in the City to provide Cable Services. Gross Revenue includes, but is not limited to, basic, premium, pay - per -view and other video fees, gross advertising revenues and home shopping revenues, Installation, disconnection, and reconnection fees and charges, equipment rental fees, equipment sale revenues, programming guide revenues, Lockout Device revenues, FCC regulatory fees, leased access channel fees, late fees and administrative fees and franchise fees. Gross Revenue shall not include refundable deposits, bad debt (provided that bad debt that is written off but subsequently collected shall be included in Gross Revenues in the period collected), investment income, programming launch support payments, advertising sales commissions paid to unaffiliated entities, nor any taxes, fees or assessments directly imposed or assessed by any governmental authority on the Grantee's services that are collected by the Grantee on a governmental entity's behalf, provided that franchise fees shall not be regarded as such taxes, fees or 9 assessments. The City acknowledges that Grantee maintains its financial books and records, including those books and records pertaining to the City and the calculation of Gross Revenues, in accordance with Generally Accepted Accounting Principles. In the event that the Grantee shall, during the term of this Franchise or any extension(s) thereof, bundle, tie or combine Cable Services (which are subject to the franchise fee provisions hereof) with non -Cable Services that are not subject to the franchise fee provisions hereof, so that Subscribers pay a single fee for more than one class or type of service or receive a discount on Cable Services, a pro Bata share of the revenue received for the bundled, tied, or combined services shall, to the extent reasonable, be allocated to Gross Revenues for purposes of computing the franchise fee. To the extent there are published charges or a la carte prices and they are reasonable under applicable law, the pro rata share of revenues allocated to Gross Revenues shall be computed on the basis of the published charge or a la carte price for each of the bundled, tied, or combined services, when purchased separately. Throughout the term of this Franchise, the Grantee agrees that it will not intentionally or unlawfully allocate service revenues for the purpose of evading or reducing the franchise fee payments required herein. If particular non -Cable Services and the revenues derived therefrom may be lawfully included in Gross Revenues for the purpose of assessing a franchise fee at any time after the Effective Date of this Franchise, the City may immediately commence, though on a reasonable implementation schedule, the assessment of a franchise fee on such services to the maximum amount permitted by applicable law. (16) "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 11.102 are calculated and reported using the QC network database. (17) "Installation" means the connection of the System from feeder cable to the point of connection with the Subscriber Converter, television monitor /receiver or other terminal equipment. (18) "Lockout Device" means an optional mechanical or electrical accessory to a Subscriber's terminal which inhibits the viewing of a certain program, certain Channel, certain Channels or certain signals provided by way of the Cable System. M (19) "Node" means the transition point between optical light transmission and RF transmission of signals being delivered to and received from the Subscriber's premises. (20) "Normal Business Hours" means those hours during which most similar businesses in the community are open to serve customers. In all cases, "normal business hours" must include some evening hours at least one night per week and /or some weekend hours. (21) "Normal Operating Conditions" means those service conditions that are within the control of the Grantee. Conditions that are ordinarily within the control of the Grantee include, but are not limited to, special promotions, pay - per -view events, rate increases, regular peak or seasonal demand periods, and the construction and maintenance of the System. Conditions that are not within the control of the Grantee include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. (22) "PEG" or "PEG Access" means public, educational and governmental access programming. For purposes of this Franchise, "governmental" includes (but is not limited to) public libraries, the State, the City Council and City agencies and departments, and the signals generated and transmitted by those entities. (23) "Person" means any individual, partnership, association, joint stock company, joint venture, domestic or foreign corporation, stock or non -stock corporation, limited liability company, professional limited liability corporation, or other organization of any kind, or any lawful successor or transferee thereof, but such term does not include the City. (24) "Public Access Channel(s)" means any Channel(s) on the System set aside by the Grantee for use by the general public, as contemplated by applicable law. (25) "Right -of -Way" or "Rights -of -Way" means the area on, below, or above a public roadway, highway, street, cartway, bicycle lane, and public sidewalk in which the City has an interest, including other dedicated rights -of -way for travel purposes and utility easements of the City which, consistent with the purposes for which they were created, obtained or dedicated, may be used for the purpose of installing, operating and maintaining a System. A Right -of -Way does not include the airwaves above a Right -of -Way with regard to cellular or other non -wire telecommunications or broadcast services. No reference herein to a "Right -of- Way" shall be deemed to be a representation or guarantee by the City that its interest or other right to control or use such property is sufficient to permit its use for the purpose of installing, operating and maintaining the System. (26) "Right -of -Way Ordinance" means the ordinance codifying requirements regarding regulation, management and use of Rights -of -Way in the City, including registration and permitting requirements. 5 (27) "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. (28) "State" means the State of Minnesota and its agencies and departments. (29) "Subscriber" means any Person or entity that lawfully receives Service via the System. In the case of office buildings or multiple dwelling units, the "Subscriber" means the lessee, tenant or occupant. SECTION 11.102 GRANT OF AUTHORITY AND GENERAL PROVISIONS (A) Grant of Franchise. This Franchise is granted pursuant to the terms and conditions contained herein and in applicable law. The Grantee shall comply with all provisions of this Franchise and applicable laws, regulations and codes. Failure of the Grantee to construct, operate and maintain a System as described in this Franchise or to meet obligations and comply with all provisions herein and all applicable laws and regulations, may be deemed a violation of this Franchise. (1) Nothing in this Franchise shall be deemed to waive the lawful requirements of any generally applicable City ordinance existing as of the Effective Date. (2) Each and every term, provision or condition herein is subject to the provisions of state law, federal law, and local ordinances and regulations. The City 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. (3) 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. (4) 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, 0 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. (5) 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. (6) 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. (7) 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 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. (B) Grant of Nonexclusive Authority. (1) Subject to the terms of this Franchise, the City hereby grants the Grantee the nonexclusive right to own, construct, operate and maintain a System in, along, among, upon, across, above, over, or under the Rights -of -Way. The grant of authority set forth in this Franchise applies only to the Grantee's provision of Cable Service; provided, however, that nothing herein shall limit the Grantee's 7 ability to use the System for other purposes not inconsistent with applicable law or with the provision of Cable Service; and provided further, that any local, State and federal authorizations necessary and lawful for the Grantee's use of the System for other purposes are obtained by the Grantee. This Franchise does not confer any rights other than as expressly provided herein, or as provided by federal, State or local law. No privilege or power of eminent domain is bestowed by this Franchise or grant. The System constructed and maintained by Grantee or its agents pursuant to this Franchise shall not interfere with other uses of the Rights -of -Way. The Grantee shall make use of existing poles and other aerial and underground facilities available to the Grantee to the extent it is technically and economically feasible to do so. The City makes no representation or guarantee that its interest in or right to control any Right -of -Way is sufficient to permit the Grantee's use, and the Grantee shall gain only those rights to use that are within the City's power to convey. (2) Notwithstanding the above grant to use Rights -of -Way, no Right -of -Way shall be used by Grantee if the 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. (3) This Franchise and the right it grants to use and occupy the Rights -of -Way shall not be exclusive and this Franchise does not, explicitly or implicitly, preclude the issuance of other franchises or similar authorizations to operate Cable Systems and other video networks in the City. (4) This Franchise authorizes only the use of Rights -of -Way for the provision of Cable Service. Therefore, the grant of this Franchise and the payment of franchise fees hereunder shall not exempt the Grantee from the obligation to pay compensation or fees for the use of City property, both real and personal, other than the Rights -of -Way; provided, however, that such compensation or fees are required by City ordinance, regulation or policy and are lawful and nondiscriminatory. (C) Lease or Assignment Prohibited. No Person or governmental body may lease Grantee's System for the purpose of providing Cable Service to Subscribers 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, including, without limitation, a requirement on such Person to pay franchise fees on such Person's or governmental body's use of the System to provide Cable Services, to the extent there would be such a requirement under this Franchise if the Grantee itself were to use the System to provide such Cable Service. Any assignment of rights under this Franchise shall be subject to and in accordance with the requirements of Section 11.110(E). (D) Franchise Term. The term of this Franchise shall extend from the date of acceptance by the Grantee until December 31, 2020, unless sooner renewed, revoked or terminated as herein provided, or unless extended by the City. (E) Compliance with Applicable Laws, Resolutions and Ordinances. (1) The terms of this Franchise shall define the contractual rights and obligations of the Grantee with respect to the provision of Cable Service and operation of the System in the City. However, the Grantee shall at all times during the term of this Franchise be subject to all lawful exercise of the police powers of the City. The grant of this Franchise does not relieve the Grantee of its obligations to obtain any generally applicable licenses, permits and other authorizations as may be required by the City Code, as it may be amended, for the privilege of operating a business within the Rights -of -Way, to the extent not inconsistent with this Franchise. Except as provided below, any unilateral modification or unilateral amendment to this Franchise, or the rights or obligations contained herein, must be within the lawful exercise of City's police powers, 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 11.113 (C) herein. (2) The Grantee shall comply with the terms of any City ordinance or regulation of general applicability which addresses usage of the Rights -of -Way within the City which may have the effect of superseding, modifying or amending the terms of Section 11.103 and /or Section 11.108(E)(3) herein, except that the 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 placed on similarly situated Rights -of -Way users. Nothing in this Section shall prohibit Grantee from lawfully challenging any ordinance or regulation in a manner consistent with applicable law. (3) In the event of any conflict between Section 11.103 and/or Section 11.108(E)(3) of this Franchise and any City ordinance or regulation which addresses usage of the Rights -of -Way, conflicting terms in Section 11.103 and /or Section 11.108(E)(3) of this Franchise shall be superseded by such City ordinance or regulation, except that the Grantee shall not, through application of such City ordinance or regulation of Right -of -Way, be subject to additional burdens with respect to usage of Rights -of -Way which exceed burdens placed on similarly situated Right -of -Way users. Nothing in this Section restricts Grantee's right to lawfully challenge any ordinance under applicable law. (4) 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 11.103 and /or Section 11.108(E)(3) of this Franchise, the Grantee shall comply with such ordinance or regulation of general W applicability, regardless of which requirement was first adopted except that the 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 placed on similarly situated Rights -of -Way users. Nothing in this Section restricts any right or cause of action Grantee may have to lawfully challenge in a court of competent jurisdiction any Right -of -Way Ordinance or regulation adopted by the City which adds to, modifies, amends or differently addresses issues covered in Section 11.103 and/or Section 11.108(E)(3) of this Franchise. Notwithstanding the foregoing, the City does not waive or limit in any way all immunities, arguments, remedies, defenses and causes of action it may have under the Minnesota Constitution, this Franchise and applicable laws, regulations, orders, and decisions. (G) Territorial Area Involved. This Franchise is granted for the corporate boundaries of the City, as they exist from time to time. In the event of annexation by the City, or as development occurs, any new territory shall become part of the territory for which this Franchise is granted. (1) 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 an equitable deployment to households 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 City Manager, or his/her designee. At each quarterly meeting, Grantee shall present information acceptable to the City (to the reasonable satisfaction of the City) showing the 10 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 City (to the reasonable satisfaction of the City) that Grantee is equitably serving all portions of the City in compliance with this subsection 11.102(G). In order to permit the City 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 (to the City'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 City Manager, 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, 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. (H) Written Notice. Except as otherwise provided herein, 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 the Grantee or the City's designated Franchise administrator, via courier or e-mail, 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 Columbia Heights, Minnesota 590 401h Avenue N.E. Columbia Heights, Minnesota 55421 -3878 Attention: City Manager 11 With copies 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., 10' Flr. Denver, CO 80202 Attn: Public Policy With copies to: Qwest Broadband Services Inc., d/b /a CenturyLink 200S.5 1h 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. (I) Effective Date. This Franchise shall become effective on January 13, 2016 (the "Effective Date "), provided that: (i) all conditions precedent to its effectiveness as an ordinance of the City have occurred; (ii) all conditions precedent to its execution are satisfied; (iii) it has been approved and adopted by the City Council in accordance with applicable law; and (iv) it has been accepted and signed by the Grantee and the City in accordance with Section 11.114. (J) Competitive Equity. (1) Any Cable Service Franchise granted by the City shall be nonexclusive and shall not preclude the City from granting other or further Cable Service franchises. The City reserves the right to grant one (1) or more additional Cable Service franchises. The City shall amend this Franchise, as requested by the Grantee, if it grants additional Cable Service franchises or similar authorizations that contain material terms or conditions which are substantially more favorable or less burdensome to the additional franchise holder than the material terms and conditions herein. A word for word identical franchise or authorization for a competitive entity is not required so long as the regulatory and financial burdens on each entity are generally equivalent. (2) In the event an application for an additional Cable Service franchise is filed with the City, the City shall notify the Grantee. SECTION 11.103 CONSTRUCTION STANDARDS (A) Registration, Permits and Construction Codes. 12 (1) Grantee shall strictly adhere to all State and local laws and building and zoning codes currently or hereafter applicable to the location, construction, installation, operation or maintenance of the System in the City and give due consideration at all times to the aesthetics of public and private property. (2) Repeated failure to obtain permits or to comply with permit requirements shall be grounds for revocation of this Franchise, or any lesser sanctions provided herein or in any other applicable law, code or regulation. (B) Repair of Rights -of -Way and Property. Any Rights -of -Way, or any sewer, gas or water main or pipe, drainage facility, electric, fire alarm, police communication or traffic control facility of the City, or any other public or private property, which is disturbed, damaged or destroyed during the construction, repair, replacement, relocation, operation, maintenance, expansion, extension or reconstruction of the System shall be promptly and fully restored, replaced, reconstructed or repaired by the Grantee, at its expense, to the same condition as that prevailing prior to the Grantee's work and shall maintain the surface in good condition for six months thereafter, to the extent consistent with applicable statutes and rules and to the extent required of other utilities making use of the Rights -of- Way. It is agreed that in the normal course, with respect to fire and police department facilities and equipment, and water and sewer facilities, and other essential utilities and services, as determined by the City, such restoration, reconstruction, replacement or repairs shall be commenced as quickly as possible under the circumstances after the damage, disturbance or destruction is incurred, and the Grantee shall take diligent steps to complete the same, unless an extension of time is obtained from the appropriate City agency or department. In all other cases, reconstruction, replacement, restoration or repairs shall be commenced within no more than three (3) days after the damage, disturbance or destruction is incurred, and shall be completed as soon as reasonably possible thereafter. If the Grantee shall fail to perform the repairs, replacement, reconstruction or restoration required herein, and to remove all dirt, rubbish and material, the City shall have the right to put the Rights -of -Way, public or private property back into good condition. In the event City determines that the Grantee is responsible for such disturbance or damage, the Grantee shall be obligated to fully reimburse the City for required repairs, reconstruction and restoration. This remedy shall be in addition to any other remedy available to the City for noncompliance with the City Code, the Right -of -Way Ordinance, State law and applicable rules, regulations, standards and requirements. (C) Conditions on Right- of- Way _Use. (1) 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. 13 (2) All System transmission and distribution structures, lines and equipment erected by the Grantee within the 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. (3) The Grantee shall, at its sole expense, by a reasonable time specified by the City, protect, support, temporarily disconnect, relocate or remove any of its property when required by the City by reason of traffic conditions; public safety; Rights - of -Way construction; street maintenance or repair (including resurfacing or widening); change in Right -of -Way grade; construction, installation or repair of sewers, drains, water pipes, power lines, signal lines, tracks or any other type of government -owned communications or traffic control system, public work or improvement of government -owned utility; Right -of -Way vacation; or for any other purpose where the convenience of the City would be served thereby. If the Grantee fails, neglects or refuses to comply with the City's request, the City may protect, support, temporarily disconnect, relocate or remove the appropriate portions of the System at the Grantee's expense. The City shall not be liable to the Grantee for damages resulting from the City's protection, support, disconnection, relocation or removal, as contemplated in the preceding sentence, except where such damage is the result of the City's gross negligence or willful misconduct. (4) All 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 the City. (5) 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. (6) To the extent consistent with generally applicable City Code provisions, rules and regulations, the Grantee shall have the right to remove, cut, trim and keep clear of its System trees or other vegetation in and along or overhanging the Rights -of- Way. However, in the exercise of this right, the Grantee agrees not to cut or otherwise injure said trees to any greater extent than is reasonably necessary. All trimming shall be performed at no cost to the City or a homeowner. (7) 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. (8) If any removal, relaying or relocation of the System is required to accommodate the construction, operation or repair of the facilities of a Person that is authorized 14 to use the Rights -of -Way, the Grantee shall, after thirty (30) days' advance written notice and payment of all costs by such Person, commence action to effect the necessary changes requested by the responsible entity. If multiple responsible parties are involved, the City may resolve disputes as to the responsibility for costs associated with the removal, relaying or relocation of facilities among entities authorized to install facilities in the Rights -of -Way if the parties are unable to do so themselves, and if the matter is not governed by a valid contract between the parties or any State or federal law or regulation. (9) In the event the System is contributing to an imminent danger to health, safety or property, as reasonably determined by the City, after providing actual notice to the Grantee, if it is reasonably feasible to do so, the City may remove or relocate any or all parts of the System at the Grantee's expense. (D) Under rounding of Cable. (1) Where existing poles, underground conduits, ducts or wire - holding structures are available for use by the Grantee, but it does not make arrangements for such use, the City may require, through the established permit, or any other applicable procedure, the Grantee to use such existing poles and wire - holding structures if the City determines that the public convenience would be enhanced thereby. The Grantee may decline to use such third -party structures after (i) demonstrating to the City that such use would be incompatible with the Grantee's regular requirements for aerial or underground facilities, and (ii) receiving the City's approval, which shall not be unreasonably withheld. (2) The Grantee agrees to place its cables, wires or other like facilities underground, in the manner as may be required by the provisions of the City Code, the Right - of -Way Ordinance and City policies, procedures, rules and regulations, as amended from time to time, where all utility facilities are placed underground. The Grantee shall not place facilities, equipment or fixtures where they will interfere with any existing gas, electric, telephone, water, sewer or other utility facilities or with any existing installations of the City, or obstruct or hinder in any manner the various existing utilities serving the residents of the City. To the extent consistent with the City Code, the Right -of -Way Ordinance, and City policies, procedures, rules and regulations, System cable and facilities may be constructed overhead where poles exist and electric or telephone lines or both are now overhead. However, in no case may the Grantee install poles in areas of the City where underground facilities are generally used by the utilities already operating. If the City, at a future date, requires all electric and telephone lines to be placed underground in all or part of the City, the Grantee shall, within a reasonable time, similarly move its cables and lines. If the City reimburses or otherwise compensates any Person using the Rights -of -Way for the purpose of defraying the cost of any of the foregoing, the City shall also reimburse the Grantee in the same manner in which other Persons affected by the requirement are reimbursed. If the funds are controlled by another governmental entity, the 15 City shall not oppose or otherwise hinder any application for or receipt of such funds on behalf of the Grantee. (E) Installation of Facilities. (1) No poles, conduits, ducts, cabinets, pedestal mounted boxes, similar structures, or other wire - holding structures shall be erected or installed by the Grantee without a required City permit or other authorization from the City. (2) No placement of any pole, cabinet, box, equipment or wire - holding structure of the Grantee is to be considered a vested fee interest in the Rights -of -Way or in City property. Whenever feasible, all transmission and distribution structures, lines, wires, cables, equipment and poles or other fixtures erected by the Grantee within the City are to be so located and installed as to cause minimum interference with the rights and convenience of property owners. (F) Safety Requirements. (1) All applicable safety practices required by law shall be used during construction, maintenance and repair of the System. The Grantee agrees, at all times, to employ ordinary and reasonable care and to install and maintain in use commonly accepted methods and devices for preventing failures and accidents that are likely to cause damage or injuries to the public or to property. All structures and all lines, equipment and connections in the Rights -of -Way shall at all times be kept and maintained in a safe condition, consistent with applicable safety codes. (2) The Grantee's construction, operation or maintenance of the System shall be conducted in such a manner as not to interfere with City communications technologies related to the health, safety and welfare of City residents. (3) The Grantee shall install and maintain such devices as will apprise or warn Persons and governmental entities using the Rights -of -Way of the existence of work being performed on the System in Rights -of -Way. (4) The Grantee shall be a member of the One Call Notification System (otherwise known as "Gopher State One Call ") or its successor, and shall field mark the locations of its underground facilities upon request. Throughout the term of this Franchise, the Grantee shall identify the location of its facilities for the City, free of charge. (G) Removal of Facilities at Expiration of Franchise. At the expiration of the term for which this Franchise is granted, or upon the expiration of any renewal or extension period which may be granted, the City shall, subject to any other lawful and valid authorizations the Grantee may have to use the System in Public Rights -of -Way, have the right to require the Grantee, at the Grantee's sole expense: (i) to remove all portions of the System from all Rights -of -Way within the City; and (ii) to restore affected sites to their original 16 condition. The City may not order removal the System, or portions thereof, until the parties have exhausted all applicable processes governing cable television franchise renewals set forth in 47 U.S.C. § 546. Should the Grantee fail, refuse or neglect to comply with the City's directive, all portions of the System, or any part thereof, may at the option of the City become the sole property of the City, at no expense to the City, or be removed, altered or relocated by the City at the cost of the Grantee. The City shall not be liable to the Grantee for damages resulting from such removal, alteration or relocation. SECTION 11.104 DESIGN PROVISIONS (A) System Capacity and Technical Design. (1) The Grantee's System generally shall have at least the following characteristics: (a) a modern design, utilizing an architecture that will permit additional improvements necessary for high - quality and reliable service throughout the Franchise term, and the capability to operate continuously on a twenty -four (24) hour a day basis without severe material degradation during operating conditions typical to the Minneapolis /St. Paul metropolitan area; (b) standby power generating capacity at the headend. The Grantee shall maintain motorized standby power generators capable of powering all headend equipment for at least twenty -four (24) hours. The back -up power supplies serving the System shall be capable of providing power to the System for not less than three (3) hours per occurrence measured on an annual basis according to manufacturer specifications in the event of an electrical outage. The Grantee shall maintain sufficient portable motorized generators to be deployed in the event that the duration of a power disruption is expected to exceed three (3) hours; (c) a System that conforms to or exceeds all applicable FCC technical performance standards, which standards are incorporated herein by reference, industry standards and manufacturers' specifications concerning the transmission and reception of analog and digital video programming and other programming services, and any other applicable technical performance standards. Upstream signals shall at all times meet or exceed manufacturers' specifications for successful operation of upstream equipment provided by the Grantee or approved for use by the Grantee at any Subscriber's premises. End of the line performance must meet or exceed FCC specifications at the end of the Subscriber Drop; (d) a System that shall, at all times, comply with applicable, then - current federal, State and local rules, regulations, practices and guidelines 17 pertaining to the construction, upgrade, operation, extension and maintenance of Cable Systems, including, by way of example (but not limitation): (i) National Electrical Code, as amended from time to time; and (ii) National Electrical Safety Code (NESC), as amended from time to time. (e) facilities and equipment sufficient to cure violations of FCC technical standards and to ensure that Grantee's System is in compliance with the standards specified in subsection 11.104(A)(1)(d); (f) such facilities and equipment as are necessary to maintain, operate and evaluate the Grantee's System for compliance with FCC technical and customer service standards, as such standards may hereafter be amended; (g) status monitoring equipment to alert the Grantee when and where back -up power supplies are being used; (h) antenna supporting structures designed in accordance with any applicable, then - current governmental building codes, as amended, and painted, lighted and erected and maintained in accordance with all applicable rules and regulations of the Federal Aviation Administration, the FCC and all other applicable codes and regulations; (i) the Grantee shall provide adequate security provisions in its Subscriber site equipment to permit parental control over the use of Grantee's Cable Service. The Grantee, however, shall bear no responsibility for the exercise of parental controls and shall incur no liability for any Subscriber's or viewer's exercise or failure to exercise such controls; (j) facilities and equipment capable of operating within the temperature ranges typical to the climate of the City over the calendar year; (k) the System shall be constructed and operated (i) so that there is no material deterioration in the quality of Public Access Channel, Educational Access Channel or Governmental Access Channel signals after delivery of such signals to the first interface point with Grantee's System, Grantee's headend or the subscriber network, and (ii) so that PEG signals are at the same or better level of technical quality and reliability as commercial signals carried by the Grantee on its System, so long as the PEG signal comes to the Grantee at that level of quality. All processing equipment used by the Grantee for processing PEG signals will be of similar quality to the processing equipment used for commercial Channels; and (1) the Grantee shall insure that the System complies with applicable FCC rules and regulations pertaining to signal leakage and shall ensure there is no degradation of picture quality delivered to Subscribers. (2) All power supplies for the System shall be equipped with standby power capability in accordance with Section 11.104(A)(1)(b). Additionally, the Grantee shall use status monitoring equipment at all power supply locations in the System. Such equipment shall have the capabilities described in Section 11.104(A)(1)(g). (3) Emergency Alert System. The Grantee shall maintain an Emergency Alert System ( "EAS ") fully compliant with local, State and federal EAS requirements. This EAS shall at all times be operated in compliance with FCC regulations. (4) The Grantee shall, in connection with any new underground System construction, install conduit adequately sized to address future System rebuilds or System additions, with the intent to limit the need to reopen Rights -of -Way for construction and installation work. (5) The Grantee shall not assert or otherwise raise any claim before a court of competent jurisdiction or any administrative agency alleging that, as of the Effective Date of this Franchise, the minimum System design and performance requirements set forth in this Franchise are unenforceable under or inconsistent with then current applicable laws or regulations, or any orders, rules or decisions of the FCC. (B) System Construction. (1) Subject to the reasonable build -out provisions in subsection 11.102(G)(1), the Grantee shall construct and operate its System so that it is able to offer and provide Cable Service to all Persons within the City as of the Effective Date of this Franchise, upon request, without charging such Persons more than the Standard Installation charges for the individual Drop. Notwithstanding anything to the contrary in this Franchise, the Grantee shall continue to offer Cable Service to all locations serviceable prior to the Effective Date of this Franchise. The requirements in this paragraph may be waived in writing by the City, in its sole discretion, upon request. (2) Except as otherwise provided herein, and subject to the reasonable build -out provisions in subsection 11.102(G)(1), the Grantee shall be given a reasonable period of time to construct and activate cable plant to service annexed or newly developed areas in the City. (3) All System construction and maintenance shall be performed in accordance with applicable laws, procedures, standards and regulations. 19 (4) The Grantee shall provide the City with notice prior to commencement of all steps of System construction or maintenance in which possible service disruptions or major physical construction activities may occur, including but not limited to: (i) pedestal and cabinet placements or replacements; (ii) underground duct placements or replacements; (iii) overlashing of aerial fiber optic, coaxial or copper lines; and (iv) underground placement or replacement of vaults and cables. (5) The Grantee shall maintain complete and comprehensive maps of the System throughout the Franchise term, and shall make them available to the City for inspection, upon request, on a confidential basis, to the extent confidential treatment is permitted by law. Such maps shall be updated as changes occur in the System. The Grantee shall provide to the City, upon request, (including any electronic form regularly maintained in the normal course of business) copies of all strand maps showing the Grantee's facilities and equipment in the Rights -of- Way, and on private property where necessary to investigate citizen complaints or to determine Franchise compliance. The Grantee shall also maintain throughout the Franchise term a full set of headend, hub, and Node routing diagrams, showing routing from source input to combiner output and routing between headends, hubs, and Nodes for all System signal transport. Such routing diagrams shall be made available to the City for inspection, upon request, on a confidential basis, to the extent confidential treatment is permitted by law. In addition, the Grantee shall, upon request, provide the City with all data and information specified in Minnesota Rules, Part 7819.4100. At the City's request, the Grantee shall provide existing data on its existing facilities within the Rights -of -Way in the form maintained by the Grantee at the time the request was made, if available. (6) Following commencement of any major System construction, the Grantee shall, upon request of the City, meet with the City and provide an update on the progress of the System construction. Prior to the beginning of the System construction, and periodically during each phase of construction, the Grantee shall inform the public and its Subscribers, through various means, about: (i) the progress of the construction; (ii) areas where construction crews will be working; and (iii) any expected temporary interruptions to existing services which may occur. (C) System Maintenance. (1) 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. The Grantee shall use its best efforts to provide the City with at least twenty -four (24) hours prior notice of a planned service interruption, except for a planned service interruption which will have a minimal impact on Subscribers usually meaning affecting less than one hundred (100) Subscribers or less than a fifteen (15) minute interruption. If service is interrupted for more than twenty - four (24) consecutive hours, Subscribers shall be credited pro rata for such interruption, upon notifying Grantee orally or in writing. 20 (2) Maintenance of the System shall be performed in accordance with the technical performance and operating standards established by FCC rules and regulations. Should the FCC choose to abandon this field and does not preempt the City's entry into this field, the City may adopt such technical performance and operating standards as its own, and the Grantee shall comply with them at all times. (D) Technical Standards. The technical standards used in the operation of the System shall comply, at minimum, with the applicable technical standards promulgated by the FCC relating to Cable Systems pursuant to Title 47, Section 76.601, et seq., as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference, as well as applicable industry standards (e.g., NTSC and ATSC), manufacturers' specifications and good engineering practices. The results of tests required by the FCC shall be retained by the Grantee in a manner consistent with applicable law, and shall be made available to the City for inspection upon written request or as otherwise permitted by applicable law, including Minn. Stat. § 238.084, Subd. 1(q). (E) System Tests and Inspections; Special Testing. (1) Grantee shall perform all tests necessary to demonstrate compliance with the requirements of the Franchise and other performance standards established by law or regulation. (2) 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 may require special testing of a location or locations within the System if there is a regular pattern 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 a regular pattern of 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. (3) 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, the 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 shall cooperate in such testing. Any costs and expenses associated with testing or retesting the System shall not 21 be considered franchise fees and shall not be deducted from or offset against franchise fee payments or other payments made to the City. (4) Unless otherwise provided in this Franchise, tests shall be supervised by the Grantee's chief technical authority, or designee, who shall certify all records of tests provided to the City. (5) The Grantee shall provide the City with at least two (2) business days' prior written notice of, and opportunity to observe, any special tests required by the City pursuant to subparagraph (2) of this Section and performed on the System. (a) Test results shall be provided to the City within fourteen (14) days of a written request by the City, unless otherwise required by the terms of this Franchise. (b) If any test indicates that any part or component of the System fails to meet applicable requirements, the Grantee, without requirement of additional notice or request from the City, shall take corrective action, retest the locations and advise the City of the action taken and the results achieved by filing a written report certified by the Grantee's chief technical authority, or designee. Any costs associated with testing or retesting the System shall not be considered franchise fees and shall not be deducted from or offset against franchise fee payments or other payments made to the City. (F) FCC Reports. Unless otherwise required by the terms of this Franchise, the results of any tests required to be filed by Grantee with the FCC or in the Grantee's public file, as it relates to Cable Service in the City, shall upon request of City also be made available to the City for review at Grantee's local offices within ten (10) days of the request. (G) Lockout Device. Upon the request of a Subscriber, Grantee shall make available a Lockout Device at its regular and nondiscriminatory charge to Subscribers. (H) Types of Service. Any change in programs or services offered shall comply with all lawful conditions and procedures contained in this Franchise and in applicable laws or regulations. (I) Uses of System. The Grantee shall, upon request of the City, advise the City of all active uses of the System, for both entertainment and other purposes, and the City shall have the right to conduct unannounced audits of such usage. 22 SECTION 11.105 SERVICE PROVISIONS (A) Customer Service Standards. The Grantee shall at all times comply with applicable FCC customer service standards and all applicable State standards, which standards are incorporated into and made a part of this Franchise. Applicable customer service standards in effect on the Effective Date of this Franchise include, but are not limited to, those customer service requirements set forth in this Section 11.105 and Exhibit A, which is attached hereto and incorporated herein. Nothing in this Franchise shall limit the City's ability to adopt and, upon 90 days' notice to Grantee, enforce additional or stricter customer service standards than those delineated in federal law to the extent permitted by applicable law. The parties acknowledge that Grantee may pass through to Subscribers direct and verifiable costs attributable to complying with such additional or stricter customer service standards adopted by the City in any manner consistent with and permitted by applicable law. (B) Video Programming. Except as otherwise provided in this Franchise or in applicable law, all video programming decisions remain the discretion of the Grantee, provided that the Grantee notifies the City and Subscribers in writing thirty (30) days prior to any Channel additions, deletions or realignments unless otherwise permitted under applicable federal, State and local laws and regulations. Grantee shall cooperate with the City, and use best efforts to provide all Subscriber notices to the City prior to delivery to Subscribers. (C) Regulation of Service Rates. (1) 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). The City reserves the right to regulate rates for any future services to the extent permitted by law. (2) The Grantee shall provide at least one billing cycle prior written notice (or such longer period as may be specified in FCC regulations) to Subscribers and to the City of any changes in rates, regardless of whether or not the Grantee believes the affected rates are subject to regulation, except to the extent such notice requirement is specifically waived by governing law. Bills must be clear, concise and understandable, with itemization of all charges. (D) Subscriber Contracts. Upon written request, the Grantee shall provide the City any standard form Subscriber contract utilized by the Grantee then in effect. If no such written contract exists, Grantee shall provide the City with 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) and current Subscriber rates and charges shall be available for public inspection at Grantee's offices during Normal Business Hours. 23 (E) Service Credit. (1) 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 cycle. (2) If, for any reason, Service is interrupted for more than twenty -four (24) consecutive hours in any thirty (3 0) day period, Subscribers shall be credited pro rata for such interruption upon notifying Grantee orally or in writing. (F) Refunds or Credits. (1) Any refund checks shall be issued promptly, but not later than either: (a) the Subscriber's next billing cycle following resolution of the request or thirty (30) days, whichever is earlier; or (b) the return of the equipment supplied by the Grantee if Service is terminated. (2) Any credits for Cable Service shall be issued no later than the Subscriber's next billing cycle following the determination that a credit is warranted. (G) 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. The Grantee shall comply with all State and local consumer protection laws and regulations pertaining to late fees, and such fees shall not exceed any amount permitted by State or local law. (H) Notice to Subscribers. Subscriber notices shall comply with those FCC regulations then in effect and with the requirements set forth in Exhibit A. (I) Anticompetitive Acts Prohibited. The Grantee shall not engage in acts prohibited by federal or State law that have the purpose or effect of limiting competition for the provision of Cable Service or other multichannel video programming services in the City. (J) Office Availability and Drop Boxes. (1) The Grantee shall install, maintain and operate, throughout the term of this Franchise, a single staffed payment center with regular business hours in the City. 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 W charged a late fee or otherwise penalized for any failure by the Grantee to properly credit a Subscriber for a payment timely made. (2) The Grantee shall, at the request of a Subscriber, deliver or retrieve electronic equipment (e.g., Set Top Boxes and remote controls) to or from the Subscriber's premises. The rate(s) or charge(s) for such delivery or retrieval shall not exceed the amounts permitted by rate regulation rules and applicable law. (3) The Grantee shall provide Subscribers and the City with at least sixty (60) days' prior notice of any change in the location of the customer service center serving the City, which notice shall apprise Subscribers of the customer service center's new address, and the date the changeover will take place. SECTION 11.106 PEG ACCESS PROVISIONS (A) Public, Educational and Government Access Capacity on the System. (1) The City or its designee is hereby designated to operate, administer, promote, and manage PEG Access (public, educational, and governmental) programming and PEG Access Channels on the Cable System. The City may designate one (1) or more entities, including a non - profit access corporation or a municipal joint powers commission, to operate, manage, administer, promote and /or program any Public Access Channel, Governmental Access Channel or Educational Access Channel. As of the Effective Date, Independent School District #13 is designated to operate, manage, administer, promote and program any Educational Access Channel or Educational Access Channel capacity on the Cable System. The City may change the designation of a PEG Access manager at any time, in its sole discretion. (2) Within 120 days of Effective Date, the Grantee shall provide four (4) channels (the "Access Channels ") to be used for PEG access programming on the Basic Service Tier. The City has 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 City's Master Control Center 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 City and any designated Access provider to Grantee at each demarcation point at City Hall and at the designated Access providers' locations. City agrees that Grantee shall be allowed to meet the obligations of this subsection by providing, free of charge and at no cost to the City, a direct fiber connection and necessary equipment to transmit PEG 25 programming from the City's designated and permanent location of its Master Control Center to the Grantees headend ( "PEG Origination Connection "). In the event Grantee is not able to obtain all of the PEG programming at the PEG Origination Connection, the Grantee agrees to undertake construction of direct connections and necessary equipment to each of the programming origination sites as identified on the effective date of this franchise, free of charge and at no cost to the City, within a reasonable period of time taking into consideration weather and related technical issues. The City will give Grantee written notice detailing the point of origination and the capability sought by the City. (i) 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 "Columbia Heights Mosaic "), where a cable subscriber can access via an interactive video menu one of any of the 4 Access Channels. The Columbia Heights Mosaic will be located on Channel 21. The 4 Access Channels will be located at Channels 8052 -8055. The Columbia Heights Mosaic will contain only Access Channels authorized by the City. (ii) Grantee will make available to the City the ability to place detailed scheduled Access Channel programming information on the interactive channel guide by putting the City 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 City shall be responsible for providing programming information to the EPG provider. (iii) 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. (iv) Grantee will provide, at no cost to the City, 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 City will provide a 30- second PSA prior to the start of each month on a mutually agreed -upon schedule. (v) 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 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, 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. 26 (vi) 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. (vii) Within one hundred twenty (120) days of a written request from the City, 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: (a) Twenty -five (25) hours of programming, or such greater amount as may be mutually agreed to by the parties, as designated and supplied by the City, or its Designated Access Provider to the Grantee may be electronically transmitted and /or transferred and stored on the PEG -VOD system; and (b) 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 (c) 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; (d) The hardware and software described in subsection 11.106(2)(viii) 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. (viii) 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 27 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. (3) Grantee shall make available sufficient capacity on the System to deliver to Subscribers each PEG Channel signal as received, with no material degradation of quality, in accordance with this Section. The City or its designee(s) shall allocate the PEG Access Channels in its sole discretion. Grantee shall maintain one additional Channel in reserve for PEG use as of the Effective Date. The parties acknowledge that Grantee may use this Channel to provide commercial programming subject to reclamation by the City. The City may reclaim the loaned PEG Channel for PEG use in accordance with this Section. The City may rename, reprogram, or otherwise change the use of the PEG Channels in its sole discretion, provided such use is lawful, and retains the general purpose of the provision of PEG communications. The City may secure additional PEG Channel capacity pursuant to Minn. Stat. § 238.084, which is expressly incorporated herein by reference. The City shall provide ninety (90) days' prior written notice to the Grantee of the City's intent to activate an additional PEG Access Channel. (4) Any PEG Access Channel reassignment must be to a Channel that meets or exceeds the service and technical standards required by this Franchise. (5) PEG Channels must be made available to all Subscribers in the City, regardless of the tier of service subscribed to by the Subscriber. (6) In the event the Grantee makes any change in the System and related equipment and facilities or in signal delivery technology, which change directly or indirectly causes the signal quality or transmission of PEG Access Channel programming or PEG Access services to fall below the service quality or technical levels provided for in subsection 11.104(A)(1)(k), the Grantee shall, at its own expense, provide any necessary technical assistance, transmission equipment and training of PEG personnel, and in addition, provide necessary assistance so that PEG Access programming facilities may be used as intended, including, among other things, so that live and recorded programming can be produced, edited, encoded and transmitted efficiently to Subscribers and so that Subscribers receive PEG Access programming which has technical characteristics (e.g., picture quality and audio quality) that comply with the requirements set forth in this Section. (7) All PEG Channels shall be either transmitted in the same format as provided to Grantee, or Grantee shall bear the cost of converting the PEG Access Channels for carriage on its System. All PEG Access Channels shall be carried on the Basic Cable Service tier. Throughout the term of this Franchise, the Access Channels shall be provided to all subscribers regardless of the tier or package of Cable Service subscribed to by the Subscriber. IRS (B) Charges for Use. Channel time and playback of prerecorded programming on the PEG Access Channel(s) must be provided without charge to the City, PEG Access programmers and PEG Access managers. The Grantee shall also provide downstream transmission of the PEG Channels at no charge to the City, PEG Access programmers and PEG Access managers. (C) PEG Access Rules. The City may adopt reasonable rules and procedures regarding the use of PEG Channels pursuant to Section 611(d) of the Cable Communications Policy Act of 1984, as amended, 47 U.S.C. § 531(d), and Chapter 238 of Minnesota Statutes. The City may, in its sole discretion, delegate the authority to promulgate such rules to an entity managing a particular PEG Access Channel. The City shall have the sole authority to resolve any disputes regarding allocation or utilization of PEG Access Channels. (D) PEG Support Obligations. (1) Grantee will pay a monthly PEG Fee of $0.90 per subscriber per month until the franchise renews. The PEG Fee will be remitted to the City on a quarterly basis. The PEG Fee will be paid to the City at the same time as the Franchise Fee. Starting with the 2016 calendar year, the City may elect to increase this fee based on the incumbent's cable franchise PEG support obligation, or the Consumer Price Index. Any such election must be made in writing to the Franchisee no later than September 1 st prior to the year in which the increase shall apply. In no event shall the monthly per subscriber fee be in an amount different from the incumbent cable provider. The PEG Fee may be used for operational or capital support of PEG programming. (2) In the event the payment required by subsection 11.106(D)(1) is not made on or before the required date, the Grantee shall pay, during the period such unpaid amount is owed, additional compensation and interest charges computed from such due date, at an annual rate of ten percent (10 %) or the maximum rate permitted by law. The Grantee waives any right to claim that any interest or penalties imposed hereunder constitute franchise fees within the meaning of 47 U.S.C. § 542. Failure to pay required the PEG Grant in a timely manner shall also be a material violation of this Franchise, subject to all sanctions and remedies herein, and the City may, at its discretion, declare this Franchise void and of no further force and effect. (3) The Grantee agrees that if it utilizes an electronic programming guide or visual interface under its control on its System for all Channels, the PEG Access Channels shall be clearly identified so that Subscribers will have ready access to all PEG Access Channels. 29 (4) 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 City, 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. (E) Return Feeds From PEG Access Signal Origination Sites to the Grantee's Headend. (1) The Grantee shall provide without charge facilities and equipment so that PEG Access signals can be routed from the PEG origination sites onto an appropriate PEG Channel on the Cable System. Upstream transmission provided by the Grantee under this Section shall include all equipment and facilities necessary for amplification, optical conversion, receiving, transmitting, switching, and headend processing of upstream PEG signals from each PEG Access signal origination site. All such equipment, including but not limited to the electronics at each PEG Access signal origination site, shall be installed, repaired, and maintained in good working order by the Grantee on the Grantee's side of the point of interconnection, provided, however, that the Grantee shall not be responsible for the cost of repairing any damage caused by the owner or operator of the PEG Access signal origination site or its agents or invitees. The reasonably certain and quantifiable incremental costs of construction of such upstream PEG Access signal transmission facilities and of associated equipment may be recovered from Subscribers as a separate line item on Subscriber bills in any manner consistent with and to the extent permitted by applicable law. Any and all incremental costs incurred by Grantee under this paragraph may not be recovered or itemized on Subscribers' bills more than once. (2) The Grantee shall be responsible for ensuring that signals for each PEG Access Channel are correctly routed from each PEG access signal origination site on to the correct PEG Channel for distribution to Subscribers. (3) Every upstream feed provided pursuant to this Section shall ensure that the quality of PEG Access signals delivered to Subscribers shall meet the standards provided in this Section. (4) Grantee shall provide the aforementioned cabling, electronics, equipment, software and other materials at no cost to the City. This equipment shall include one (1) encoder for each Access Channel. (F) Backup Facilities and Equipment. Subject to subsection 11.106(E), the Grantee shall design, build and maintain all PEG upstream feeds, interconnection and distribution facilities so that such feeds function as reliably as the Grantee's Cable System as a whole within the City, and are no more likely to fail than is the Grantee's Cable System as a whole within the City. (G) Editorial Control. Except as expressly permitted by federal law, the Grantee shall not exercise any editorial control over the content of programming on the designated PEG Channels (except for such programming as the Grantee may produce and cablecast on such Channels). (H) Regional Channel 6. The Grantee shall designate standard VHF Channel 6 for uniform regional Channel usage, to the extent required by applicable law. (I) Leased Access Channels. The Grantee shall provide leased access Channels as required by federal and State law. (J) PEG Obligations. Except as expressly provided in this Franchise, the Grantee shall not make any changes in PEG Access support or in the transmission, reception and carriage of PEG Access Channels and equipment associated therewith, without the prior consent of the City. (K) Costs and Payments Not Franchise Fees. The parties agree that any and all costs and expenses to the Grantee and payments from the Grantee associated with the provisions of Sections 11.106 and 11.107 of this Franchise are voluntary and cable- related, and are not intended to constitute and are not part of a franchise fee and fall within one or more of the exceptions to 47 U.S.C. § 542. SECTION 11.107 MUNICIPAL SERVICES (A) Twin Cities Metro PEG Interconnect Network. Grantee shall provide a discrete, non- public, video interconnect network, from an agreed upon demarcation point at the City's Master Control Center 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. (B) Cable Service to Public Buildings. 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 seven (7) outlets at City Hall and to each Independent School District at the current locations located in the City 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 31 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. SECTION 11.108 OPERATION AND ADMINISTRATION PROVISIONS (A) 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. (B) 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 and enforce the Franchise and to monitor the performance of the Grantee pursuant to the Franchise. The Grantee shall cooperate with any such delegatee of the City. (C) Franchise Fee. (1) During the term of the Franchise, Grantee shall pay quarterly to the City a franchise fee in an amount equal to five percent (5 %) of its quarterly Gross Revenues, in a manner consistent with federal law, or such other amounts as are subsequently permitted by federal or State law. (2) Any payments due under this provision shall be payable quarterly. The payment shall be made within forty five (45) days of the end of each of Grantee's fiscal quarters together with a report showing the basis for the computation. The City shall have the right to require further supporting information for each franchise fee payment, which information shall be furnished directly to the City, subject to the confidentiality provisions of this Franchise, so long as such information is maintained in the ordinary course of business. In addition, the Grantee shall file with the City an annual report showing all Gross Revenues for the prior calendar year. This report shall be filed with the City within thirty (30) days of the end of each calendar year. (3) All amounts paid shall be subject to review or audit and recomputation by the City and acceptance of any payment shall not be construed as an accord that the 32 amount paid is in fact the correct amount. The Grantee shall be responsible for providing the City and /or its designee(s) all documents, records and certifications necessary to confirm the accurate payment of franchise fees, regardless of whether such documents and records are held by the Grantee, an Affiliate or any other agent of the Franchisee. The Grantee shall maintain such documents and records for five (5) years, unless in the Grantee's ordinary course of business specific records are retained for a shorter period, but in no event less than three (3) years. If an audit or review discloses an overpayment or underpayment of franchise fees, the City shall notify the Grantee of such overpayment or underpayment. The City's audit /review expenses shall be borne by the City unless the audit determines that the payment to the City should be increased by more than five percent (5 %) in the audited period, in which case the costs of the audit shall be borne by the Grantee 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 the Grantee by the City 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. If the audit or review determines that there has been an overpayment by the Grantee, the Grantee may credit any overpayment against its next quarterly franchise fee payment. (4) In the event any franchise fee payment or recomputation amount is not made on or before the required date, the 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 %). (5) Nothing in this Franchise shall be construed to limit any authority of the City to impose any tax, fee or assessment of general applicability. (6) The franchise fee payments required by this Franchise shall be in addition to any and all taxes or fees of general applicability and all direct or indirect PEG support costs, expenses and payments. The 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 payments and taxes or fees of general applicability, except as expressly permitted by law. The 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 payments, taxes or fees of general applicability, except as expressly permitted by law. Nor shall the Grantee apply or seek to apply all or any part of the amount of any of said costs, expenses and payments, and 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. (D) Access to Records. The City, in its sole discretion, shall have the right to inspect, upon reasonable notice and during Normal Business Hours, or require the Grantee to provide 33 within a reasonable time, copies of any records maintained by Grantee or an Affiliate or subsidiary of the Grantee which relate to System operations including (but not limited to) the Grantee's accounting and financial records. (E) Reports and Maps to be Filed with the Cit . (1) The Grantee shall file with the City, at the time of payment of the franchise fee, a report of all Gross Revenues in substantially the form as attached as Exhibit B. (2) The Grantee shall prepare and furnish to the City, upon request, such information and data that are reasonably necessary for the City to enforce the terms and conditions of this Franchise and applicable law. The Grantee shall not be required to create new reports under this Section, but shall supply all requested data and information that are maintained in the ordinary course of business, regardless of format or form, in a manner that can be viewed by the City, subject to the confidentiality provisions of Section 11.108(H). (3) If required by the City, the Grantee shall make available to the City the maps, plats, and permanent records of those maps identifying the general location and character of Cable System facilities constructed, including underground facilities, and shall update said maps from time to time upon written request. In addition, the Grantee must promptly make available mapping information for any of its underground facilities in accordance with Minnesota Rules, Parts 7819.4000 and 7819.4100. (F) Periodic Evaluation. (1) The City may require evaluation sessions at any time during the term of this Franchise, upon fifteen (15) days' written notice to the Grantee. (2) Topics which may be discussed at any evaluation session may include, but are not limited to, application of new technologies, System performance, programming offered, PEG Access Channel capacity, facilities and support, municipal uses of cable, Subscriber rates, customer complaints, amendments to this Franchise, judicial rulings, FCC rulings, line extension policies and any other topics the City deems relevant. (3) Nothing in this Section shall require the change or modification of any provision of this Franchise, except as may be agreed to in writing by the Grantee and the City. (G) Review of PEG Cost Recovery. The City may review the Grantee's pass- through and recovery of PEG - related costs and expenses included in any line item on Subscribers' bills and /or in the Grantee's rate base. Subject to the confidentiality provisions of this Franchise, the Grantee shall be responsible for providing the City and /or its designee(s) all documents, records and certifications maintained in the ordinary course of business and 34 necessary to confirm the accurate pass- through and recovery of PEG - related costs incorporated in its rate base and /or itemized on Subscriber billing statements, regardless of whether such documents and records are held by the Grantee, an Affiliate or any other agent of the Grantee. The Grantee shall maintain such documents and records for five (5) years, unless in the Grantee's ordinary course of business specific records are retained for a shorter period, but in no event less than three (3) years. If a review discloses an over - recovery of PEG - related costs, the City shall notify the Grantee of such over - recovery and may order Subscriber refunds. Any refunds owed to Subscribers shall be made by Grantee within ninety (90) calendar days of receiving an order from the City, or such other time period as may be provided for in applicable laws or regulations. (H) Confidential Treatment of Certain Information Furnished by Grantee Pursuant to this Franchise. The Grantee shall provide books, documents, information and records to the City, and /or its agents, in accordance with the terms of this Franchise; provided, however, that requested books, documents, information and records that are confidential or proprietary may be disclosed to the City and /or its agents pursuant to a non - disclosure agreement, an example of which is attached hereto as Exhibit C, whereby the information required to be disclosed under this Franchise will be provided for a specific purpose defined in the non - disclosure agreement. The intent of the parties is to work cooperatively to insure that those books, documents, information and records necessary for the City's monitoring, administration and enforcement of Franchise obligations are provided to the City, and /or its agents, or made available for review. If the Grantee requests that the City and/or its agents review particular books, documents, information and /or records at Grantee's offices, and the City or its agents agree, in their sole discretion, then the Grantee shall pay all actual costs incurred by the City and/or its representative(s) in traveling to Grantee's offices and reviewing and analyzing requested documents, books, records and /or information. To the extent that Grantee furnishes documents, books, information and /or records directly to the City, City officials agree to protect any proprietary or confidential books or records, in accordance with the terms of an executed non - disclosure agreement substantially in the form attached hereto as Exhibit C, to the extent permitted by law or by any applicable State or federal order or decision. The Grantee shall be responsible for clearly and conspicuously identifying and marking confidential or proprietary documents, books, records and information as "confidential" or "proprietary" consistent with the terms of an executed non - disclosure agreement. If the City receives a lawful demand from any Person for disclosure of any information properly and lawfully designated by the Grantee as confidential or proprietary pursuant to an enforceable non - disclosure agreement then in effect, the City shall, so far as consistent with applicable law, advise the Grantee and provide the Grantee with a copy of any written request by the party demanding access to such information within a reasonable time. If the Grantee believes that the disclosure of such documents by the City would cause irreparable harm to the Grantee's rights under federal or State law, the Grantee may institute an action in Anoka County State District Court or a Federal Court of competent jurisdiction in Minnesota to prevent the disclosure by the City of such documents. The Grantee shall join the Person requesting the documents to such an action. The Grantee shall defend, indemnify and hold the City harmless from any claim or judgment as well as any costs, expenses, damages, penalties and attorney's fees incurred in participating in any such proceeding. The Grantee shall MR also make arrangements for the return of confidential or proprietary information to the Grantee's designated offices at Grantee's sole expense, unless otherwise agreed to in writing by the parties. SECTION 11.109 GENERAL FINANCIAL AND INSURANCE PROVISIONS (A) Letter of Credit. (1) Within 30 days of the Effective Date of this Franchise, the Grantee shall deliver to the City an irrevocable and unconditional Letter of Credit, effective on the Effective Date, in a form and substance acceptable to the City, from a National or State bank approved by the City, in the amount of $25,000.00, and maintain such Letter of Credit for the duration of this Franchise, and any extension(s) thereof. The Letter of Credit shall provide that funds will be paid to the City, upon written demand of the City, and in an amount solely determined by City in payment for any monies, fees and /or taxes owed by the Grantee to the City or any Person pursuant to its obligations under this Franchise, or in payment for any damage incurred by the City, or any Person as a result of any acts or omissions by the Grantee pursuant to this Franchise. (2) If the Grantee fails to make timely payment to the City of any amount due under this Franchise or applicable law, the City may, after ten (10) business days written notice to the Grantee, make a claim against the Letter of Credit for the amount due, with interest and any applicable penalties. (3) If the City determines that the Grantee is in default of any provision of this Franchise which is subject to liquidated damages pursuant to subsection (B) below, and determines that the collection of liquidated damages is appropriate, upon ten (10) days' written notice to the Grantee, the City may make a claim against the Letter of Credit for the amount of the liquidated damages. (B) Liquidated Damages. (1) Because it may be difficult to calculate the harm to the City in the event of a breach of this Franchise by Grantee, the parties agree to liquidated damages as a reasonable estimation of the actual damages. To the extent that the City elects to assess liquidated damages as provided in this Franchise and such liquidated damages have been paid, such damages shall be the City's sole and exclusive remedy for time period that liquidated damages have been assessed and collected by the City. Nothing in this Section is intended to preclude the City from exercising any other legal or equitable right or remedy with respect to a breach that continues past the time the City stops assessing liquidated damages for such breach. 36 (2) Prior to assessing any liquidated damages, the City shall mail to the Grantee a written notice by certified or registered mail of the alleged violation(s) and the proposed liquidated damages, specifying the violation(s) at issue. The Grantee shall have thirty (30) days from the date of receipt of the written notice to cure or commence to cure, as is appropriate depending on the nature of the alleged violation, or to file a written response refuting the alleged violation or explaining why additional time for cure is necessary. In the case of breaches of requirements measured on a monthly, quarterly or longer period (such as customer service standards), Grantee's cure period shall be no less than one such period. (3) The City may not assess any liquidated damages if the Grantee has reasonably responded to the City's written notice of violation or cured or commenced to cure, as may be appropriate, a violation within a reasonable time frame not to exceed thirty (30) days following receipt of written notice from the City, unless some other cure period is approved by the City. In the event Grantee fails to cure or commence to cure, or fails to refute the alleged breach, the City may assess liquidated damages and shall inform Grantee in writing of the assessment. Grantee shall have thirty (30) days to pay the damages. (4) The first day for which liquidated damages may be assessed, if there has been no cure after the end of the applicable cure period, shall be the day after the end of the applicable cure period, including any extension of the cure period granted by the City. (5) The Grantee may appeal (by pursuing judicial relief or other relief afforded by the City) any assessment of liquidated damages within thirty (30) days of receiving written notice of the assessment. The Grantee's obligation to pay the liquidated damages assessed shall be stayed pending resolution of the appeal. (6) In no event may liquidated damages be assessed for a time period exceeding one hundred twenty (120) days. If after that amount of time the Grantee has not cured or commenced to cure the alleged breach to the satisfaction of the City, the City may pursue all other remedies at law or in equity. (7) Liquidated damages shall be as follows: (a) For failure to timely complete construction as provided in this Franchise or any side agreement, unless the City approves the delay, the damages shall be $250.00 per day for each day, or part thereof, such failure occurs or continues. (b) For failure to provide data, records, documents, reports or information or to cooperate with the City during an application process or System review or as otherwise provided herein, the liquidate damages shall be $150.00 per day for each day, or part thereof, such failure occurs or continues. 37 (c) For failure of the Grantee to comply with construction, operation or maintenance standards, the penalty shall be $150.00 per day for each day, or part thereof, such failure occurs or continues. (d) For failure to provide the services, equipment, facilities and payments required by this Franchise, including, but not limited to, the implementation and the utilization of the PEG Channels /capacity and the provision of PEG payments, the liquidated damages shall be $250.00 per day for each day, or part thereof, such failure occurs or continues. (e) For Grantee's material breach of any written contract or agreement with or to the City or its designee, the liquidated damages shall be $250.00 per day for each day, or part thereof, such breach occurs or continues, unless such breach is addressed by Section 11. 1 09(B)(7)(a). (f) For failure to comply with any of the material provisions of this Franchise, customer service standards or City ordinance or regulation for which liquidated damages are not otherwise specifically provided pursuant to this paragraph 11.109(B)(7), the liquidated damages shall be 150.00 per day for each day, or part thereof, such failure occurs or continues. (g) For failure to comply with the reasonable build -out provisions and for economic redlining in violation of Section 11.102(G) and 11.111 and 47 U.S.C. § 541(a)(3): Five Hundred dollars ($500) per day for each day or part thereof that such violation continues. (8) Each violation of any provision of this Franchise shall be considered a separate violation for which separate liquidated damages can be imposed; provided, however, Grantee will not be charged more than one penalty provision for each separate violation. (9) In the event that Grantee fails to pay liquidated damages pursuant to the provisions of Section 11.109(B)(7), the City may draw upon the Letter of Credit or any subsequent Letter of Credit delivered pursuant hereto, in whole or in part. If the City is obliged to draw upon the Letter of Credit, and the obligation to pay is not stayed pursuant to Section 111.109(B)(5), the Grantee shall replace or replenish to its full amount the same within ten (10) days and shall deliver to the City a like replacement Letter of Credit or certification of replenishment for the full amount stated in Section 11.109(A)(1) as a substitution of the previous Letter of Credit. This shall be a continuing obligation for any withdrawals from the Letter of Credit. (10) The collection by the City of any damages, monies, fees, or taxes from the Letter of Credit shall not affect any other right or remedy available to the City, nor shall any act, or failure to act, by the City pursuant to the Letter of Credit, be deemed a waiver of any right of the City pursuant to this Franchise or otherwise, including (but not limited to) its right to recover from the Grantee any additional damages, losses, costs and expenses that are incurred by the City by reason of the Grantee's breach of this Franchise once the initial 120 -day period for assessing liquidated damages has expired. (C) Alternative Remedies. (1) No provision of this Franchise shall be deemed to bar the right of either party to seek or obtain judicial relief from a violation of any provision of this Franchise, applicable law or any rule, regulation, requirement or directive promulgated thereunder. Neither the existence of other remedies identified in this Franchise or applicable law nor the exercise thereof shall be deemed to bar or otherwise limit the right of either party to recover monetary damages, as allowed under applicable law, or to seek and obtain judicial enforcement of obligations by means of specific performance, injunctive relief or mandate, or any other remedy at law or in equity. (2) The City specifically does not, by any provision of this Franchise, waive any right, immunity, limitation, defense or protection (including complete damage immunity) otherwise available to the City and its officers, elected and appointed officials, boards, commissions, agents, or employees under federal, State, or local law including by example, but not limitation, Section 635A of the Cable Act. The Grantee shall not have any monetary recourse against the City, or its officers, elected and appointed officials, boards, commissions, agents or employees for any loss, costs, expenses or damages arising out of any provision or requirement of this Franchise or the enforcement or non - enforcement thereof, subject to applicable law. (D) Indemnification of City. (1) The City, its officers, boards, committees, commissions, elected and appointed officials, employees, volunteers 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 the Grantee's construction, operation, maintenance, repair or removal of the System or as to any other action of the Grantee with respect to this Franchise. (2) The Grantee shall indemnify, defend, and hold harmless the City, its officers, boards, committees, commissions, elected and appointed officials, employees, volunteers and agents, from and against all claims, suits, causes of action, proceedings and judgments, and all liability, damages, fees, costs, and penalties arising therefrom, which they may legally be required to pay as a result of the City's award, exercise, administration, or enforcement of the Franchise or the Grantee's installation, construction, operation and /or maintenance of the System. 39 (3) Nothing in this Franchise relieves a Person from liability arising out of the failure to exercise reasonable care to avoid injuring the Grantee's facilities while performing work connected with grading, regrading, or changing the line of a Right -of -Way or public place or with the construction or reconstruction of a sewer or water system. (4) Grantee shall contemporaneously with this Franchise execute an Indemnity Agreement in the form of Exhibit D, which shall indemnify, defend and hold the City 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 in granting this Franchise. This obligation includes any claims by another franchised cable operator against the City 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). (E) Insurance. (1) As a part of the indemnification provided in Section 11.109(D), but without limiting the foregoing, Grantee shall file with the 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, copyright and trademark liability, and contractual liability coverage, in protection of the Grantee, the City, and its officers, elected and appointed officials, boards, commissions, agents, volunteers and employees for any and all damages, losses, costs, fees 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 and appointed officials, boards, commissions, commissioners, agents, volunteers and employees. (2) 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, $1,000,000.00 for property damage to any one person and $2,000,000.00 for property damage resulting from any one act or occurrence. (3) The policy or policies of insurance shall be maintained by the Grantee in full force and effect during the entire term of the Franchise, and any extension(s) thereof. 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 the Grantee or for other reasons, except after sixty (60) days' advance written notice have been provided to the City. The Grantee shall not cancel any required insurance policy without submission of proof that the Grantee has obtained alternative insurance satisfactory to the City which complies with this Franchise. :1 (4) All insurance policies shall be with sureties qualified to do business in the State, with an A- or better rating of insurance by Best's Key Rating Guide, Property /Casualty Edition, and shall be subject to approval by the City or its designee. (5) All insurance policies shall be available for review by the City and the Grantee shall keep on file with the City certificates of insurance. (6) Failure to comply with the insurance requirements of this Section shall constitute a material violation of this Franchise. SECTION 11.110 SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE (A) City's Right to Revoke. (1) In addition to all other rights which the City has pursuant to law or equity, the 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 the City that: (a) the Grantee has violated material provisions(s) of this Franchise; or (b) the Grantee has attempted to evade any of the provisions of the Franchise; or (c) the Grantee has practiced fraud or deceit upon the City or Subscribers. The City may revoke this Franchise without the hearing required by Section 11.110(B)(2) herein if the Grantee is adjudged a bankrupt. (B) Procedures for Revocation. (1) The City shall provide the Grantee with written notice of a cause for revocation and the intent to revoke and shall allow the Grantee sixty (60) 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, the City shall provide the Grantee with the basis of the revocation. (2) The 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 sixty (60) day notice provided in subsection 11.110(B)(1) above. The City shall provide the Grantee with written notice of its decision together with written findings of fact supplementing said decision. 41 (3) Only after the public hearing and upon written notice of the determination by the City to revoke the Franchise may the Grantee appeal said decision with an appropriate state or federal court or agency. (4) 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. (C) Abandonment of Service. The Grantee may not abandon the System or any portion thereof without having first given three (3) months' written notice to the City. The Grantee may not abandon the System or any portion thereof without compensating the City for damages resulting from the abandonment, including all costs incident to removal of the System if required by the City pursuant to Section 11.110(D). (D) Removal After Abandonment, Termination or Forfeiture. (1) In the event of termination or forfeiture of the Franchise or abandonment of the System, the City shall have the right to require the Grantee to remove all or any portion of the System from all Rights -of -Way and public property within the City, unless the Grantee is permitted to utilize the entire System and occupy the Rights - of -Way pursuant to a lawful and valid authorization in effect as of the date of termination or forfeiture. (2) If the Grantee has failed to commence removal of the System, or such part thereof as was designated by City, within thirty (30) days after written notice of the City's demand for removal is given, or if the Grantee has failed to complete such removal within twelve (12) months after written notice of the City's demand for removal is given, the 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, or portion thereof, to be in the City with all rights of ownership including, but not limited to, the right to operate the System, or portion thereof, or transfer the System to another for operation by it. (E) Sale or Transfer of Franchise. (1) No sale or transfer of the Franchise, or sale, transfer, or fundamental corporate change of or in the Grantee, including, but not limited to, a fundamental corporate change in the Grantee's parent corporation or any entity having a controlling interest in the 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 the 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 the Grantee grants a security interest in its Franchise and /or assets to secure an indebtedness; subject to the foregoing provisions, upon notice to the City, Grantee may 42 undertake legal changes necessary to consolidate the corporate or partnership structure of Grantee provided there is no change in the controlling interests of Grantee or any corporate affiliate; provided, however, Grantee must seek approval of any transaction constituting a transfer under state law. Approval of a transfer or sale request that is subject to this Section 11.110(E) shall not be unreasonably withheld. (2) Any sale, transfer, exchange or assignment of stock in the Grantee, or Grantee's parent corporation or any other entity having a controlling interest in the Grantee, so as to create a new controlling interest therein, shall be subject to the requirements of this Section 11.110(E). The term "controlling interest" as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. (3) The Grantee shall file all documents, forms and information required to be filed by applicable law. (4) The City or its designee shall have such time as is permitted by federal law in which to review a transfer request. (5) The parties acknowledge and agree that incidental costs and fees and any other lawful fees and costs associated with reviewing and /or acting on a Franchise transfer, sale or transfer of the Grantee or the System, a fundamental corporate change or change of control may be required in an amount to be established by resolution of the City Council, to the extent consistent with applicable law. (6) In no event shall a sale, transfer, corporate change, or assignment of ownership or control pursuant to subsection (1) or (2) of this Section be approved without the Grantee remaining, or (if other than the current Grantee) the transferee becoming a signatory to this Franchise and assuming or continuing to have all rights and obligations hereunder. (7) In the event of any proposed sale, transfer, corporate change, or assignment pursuant to subsection (1) or (2) of this Section, the City shall have the right to purchase the System for the value of the consideration proposed in such transaction to the extent provided State law. The City's right to purchase shall arise upon the City's receipt of notice of the material terms of an offer or proposal for sale, transfer, corporate change, or assignment, which the Grantee has accepted. Notice of such offer or proposal must be conveyed to the City in writing and be separate from any general announcement of the transaction. (8) The City shall be deemed to have waived its right to purchase the System pursuant to this Section only in the following circumstances: (a) If the City does not indicate to Grantee in writing, within sixty (60) days of receipt of written notice of a proposed sale, transfer, corporate change, 43 or assignment as contemplated in Section 11.110(E)(7) above, its intention to exercise its right of purchase; or (b) It approves the assignment or sale of the Franchise as provided within this Section. (9) No Franchise may be transferred if the City determines the Grantee is in noncompliance of the Franchise unless an acceptable compliance program has been approved by the City. The approval of any transfer of ownership pursuant to this Section shall not be deemed to waive any rights of the City to subsequently enforce noncompliance issues relating to this Franchise even if such issues predated the approval, whether known or unknown to the City. (10) Any transfer or sale of the Franchise without the prior written consent of the City shall be considered to impair the City's assurance of due performance. The granting of approval for a transfer or sale in one instance shall not render unnecessary approval of any subsequent sale or transfer for which approval would otherwise be required. SECTION 11.111 PROTECTION OF INDIVIDUAL RIGHTS (A) Discriminatory Practices Prohibited. The 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 assistance, affectional preference, or disability. The Grantee shall comply at all times with all other applicable federal, State, and City laws, and all executive and administrative orders relating to nondiscrimination. (B) Subscriber Privacy. The Grantee shall at all times comply with federal and State laws governing Subscriber privacy, including, but not limited to, Minn. Stat. § 238.084, Subd. 1(s). SECTION 11.112 UNAUTHORIZED CONNECTIONS AND MODIFICATIONS (A) 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 the Grantee's authorization. .. (B) 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 assist thereof, any part or segment of the System for any purpose whatsoever, except for any rights the City may have pursuant to this Franchise or its police powers. SECTION 11.113 MISCELLANEOUS PROVISIONS (A) 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. (B) Work Performed by Others. Grantee shall ensure that all applicable obligations of this Franchise are adhered to with regard to work performed by 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 Person performing work obtain any rights to maintain and operate a System or provide Cable Service. Upon request, the Grantee shall provide notice to the City of the name(s) and address(es) of any entity, other than the Grantee, which performs substantial services pursuant to this Franchise. (C) Amendment of Franchise Ordinance. The Grantee and the City may agree, from time to time, to amend this Franchise by a written instrument executed by the City and the Grantee. Such written amendments may be made subsequent to a review session pursuant to Section 11.108(F) or at any other time if the City and the 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 the City's exercise of its police powers to the extent permitted by law. (D) Compliance with Federal, State and Local Laws. (1) If any federal or State law or regulation shall require or permit the City or the Grantee to perform any service or act or shall prohibit the City or the 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. The Grantee and the 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. (2) The Grantee and the City agree that the terms and conditions of this Franchise are not severable. 45 (3) The Grantee shall, at all times during the term of this Franchise, including all extensions or renewals hereof, comply with applicable federal, State and local laws and regulations. (E) Nonenforcement by City. The 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 the City to enforce prompt compliance. The City may only waive its rights hereunder by expressly so stating in writing. Any such written waiver by the 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. (F) Rights Cumulative. All rights and remedies given to the City by this Franchise or retained by the 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 the 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 the 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. (G) Grantee Acknowledgment of Validity of Franchise. The Grantee acknowledges that it has had an opportunity to review the terms and conditions of this Franchise and that under current law the Grantee believes that said terms and conditions are not unreasonable, unlawful or arbitrary, and that the Grantee believes the City has the power to make the terms and conditions contained in this Franchise. (H) Governing Law. This Franchise shall be governed in all respects by the laws of the State of Minnesota. (I) 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. (J) Rights of Third Parties. This Franchise is not intended to, and shall not be construed to, grant any rights to or vest any rights in third parties, unless expressly provided herein. (K) Captions and Headings. The captions and headings of sections throughout this Franchise are intended solely to facilitate reading and reference to the sections and provisions of this Franchise. Such captions shall not affect the meaning or interpretation of this Franchise. When any provision of the City Code is expressly mentioned herein, such .s reference shall not be construed to limit the applicability of any other provision of the City Code that may also govern the particular matter in question. (L) Merger of Documents. This Franchise, and the attachments hereto, constitute the entire Franchise agreement between the City and the Grantee, and supersede all prior oral or written franchises, drafts and understandings. SECTION 11.114 PUBLICATION; EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS (A) Publication; Effective Date. This Franchise shall be published in accordance with applicable local and Minnesota law. (B) Acceptance. (1) The Grantee shall voluntarily accept this Franchise within thirty (30) days of its adoption by the City Council, unless the time for acceptance is extended by the 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 does not take place in a timely manner, or should all ordinance adoption procedures and timelines not be completed, this Franchise and any and all rights granted hereunder to the Grantee shall be null and void. (2) Upon acceptance of this Franchise, the Grantee and the City shall be bound by all the terms and conditions contained herein and in the Charter of the City of Columbia Heights. Specifically, the Grantee agrees that: (a) this Franchise is not inconsistent with applicable laws and regulations at the time it is executed; (b) it shall be subject to and will perform on its part all of the terms of Sections 94 -102, inclusive, of the Charter of the City of Columbia Heights; (c) it shall not issue any capital stock on account of the Franchise or the value thereof, and that the Grantee shall have no right to receive, upon condemnation proceedings brought by the City to acquire the public utility exercising such Franchise, any return on account of the Franchise or its value; (d) notwithstanding anything to the contrary herein, no sale or lease of this Franchise shall be active until the assignee or lessee hall have filed in the office of the City Clerk an instrument, duly executed, reciting the fact of a such sale or lease, accepting the terms of the Franchise, and agreeing to perform all the conditions required of the Grantee hereunder; (e) notwithstanding anything to the contrary herein, and subject to State laws and regulations, every grant of permission contained in this Franchise for the erection of poles, masts, or other fixtures in the Rights -of -Way and for the attachment of wires thereto, or for the laying of tracks in, or of pipes or conduits, under places of any permanent or semi - permanent fixtures whatsoever, shall be subject to the condition that the City Council shall have the power to require such alternations therein, or relocation or rerouting thereof, as the City Council may at any time deem necessary for safety, health, or convenience of the public, and particularly that it shall have the power to require the removal of poles, masts and other fixtures bearing wires and the placing underground of poles, masts, and of other fixtures bearing wires and the placing underground of all wires for whatsoever purpose used; and (f) acceptance of this Franchise, and every extension or renewal hereof, in writing by the Grantee within thirty (30) days after its passage by the City Council and before its submission to the vote of the people in the case of a referendum. No such Franchise shall be binding upon the City until its acceptance by the Grantee. Such acceptance shall be construed to be an acceptance of and consent to all the terms, conditions and limitations contained in the ordinance granting this Franchise as well as of the provisions of the Charter of the City of Columbia Heights. (3) The Grantee shall accept this Franchise in the following manner: (a) This Franchise will be properly executed and acknowledged by the Grantee and delivered to the City. (b) With its acceptance, unless otherwise stated in the Franchise, the Grantee shall also deliver any payments, performance bond, letter of credit and insurance certificates required herein that have not previously been delivered. (4) This Franchise shall bind and benefit the parties hereto and their respective authorized heirs, beneficiaries, administrators, executors, receivers, trustees, successors and assigns. Passed and adopted this 14th day of December, 2015. This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First Reading: November 23, 2015 Second Reading: December 14, 2015 Date of Passage: Offered by: Seconded by: Roll Call: Mayor Gary L. Peterson Attest: Katie Bruno, City Clerk ACCEPTED: This Franchise is accepted and we agree to be bound by its terms and conditions. Dated: .• QWEST BROADBAND SERVICES, INC., DBA CENTURYLINK By: _ Its: EXHIBIT A CUSTOMER SERVICE REQUIREMENTS (1) The Grantee shall have a publicly listed toll -free telephone number which shall be operated so as to receive public and 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. (2) The 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 laws and regulations adopted by the FCC and /or the 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 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. The Grantee shall respond to written complaints with a copy to the City or its designee within thirty (30) days, and upon request provide a copy to the City, subject to applicable State and Federal law, including but not limited to, consumer privacy. (3) Excluding conditions beyond the control of the Grantee, the Grantee shall commence working on a service interruption within twenty -four (24) hours after the service interruption becomes known and pursue to conclusion all steps reasonably necessary to correct the interruption. The Grantee must begin actions to correct other service problems the next business day after notification of the service problem, and pursue to conclusion all steps reasonably necessary to correct the problem. (4) Except as provided in paragraph (3), the Grantee shall schedule appointments for Installations and other service calls either at a specific time or, at a maximum, during a four hour time block to commence not later than 8:00 a.m. and end not earlier than 7:00 p.m. and may also schedule service calls outside such hours for the convenience of customers. The 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. (5) Subject to the Grantee's obligations pursuant to law regarding privacy of certain information, the Grantee shall prepare and maintain written records of all complaints made to the City regarding Grantee's service, and provided to Grantee, and the resolution of such complaints, including the date of such resolution. Such written records shall be on file at the local office of Grantee. The Grantee shall provide the City with a written summary of such complaints and their resolution upon request of the City. As to Subscriber complaints, the Grantee shall comply with FCC record - keeping regulations, and make the results of such record- keeping available to the City upon request. (6) The Grantee shall respond to written complaints from the City in a timely manner, and provide a copy of each response to the City within thirty (30) days. In addition, the Grantee shall respond to all written complaints from Subscribers within (30) days of receipt of the complaint. (7) The Grantee shall provide each Subscriber at the time Cable Service is installed, and at least every twelve (12) months thereafter, the following materials: (a) Instructions on how to use the Cable Service; (b) Billing and complaint procedures, and written instructions for placing a service call, filing a complaint or requesting an adjustment (including when a Subscriber is entitled to refunds for outages and how to obtain them); (c) A schedule of rates and charges, Channel positions and a description of products and services offered; (d) Prices and options for programming services and conditions of subscription to programming and other services; and (e) A description of the Grantee's Installation, Service, maintenance and arbitration policies, Subscriber privacy rights, and privacy rights (only at Installation of such service), delinquent Subscriber disconnect and reconnect procedures and any other of its policies applicable to Subscribers. (8) Copies of materials specified in paragraph (7) shall be provided to the City upon request. (9) All Grantee promotional materials, announcements and advertising of Cable Service to Subscribers and the general public, where price information is listed in any manner, shall be clear, concise, accurate and understandable. 2 EXHIBIT B FRANCHISE FEE WORKSHEET Basic Cable Service Expanded Basic Digital Service Tiers Equipment Guide Installation Premium Services Pay- Per -View Other Income Franchise Fee PEG Fee FCC Fee Bad Debt Late Fee Shopping Ad Sales Other Non -Sub Revenue TOTAL EXHIBIT C FORM CONFIDENTIALITY AGREEMENT CONFIDENTIALITY AGREEMENT BY AND BETWEEN [INSERT NAME], AND QWEST BROADBAND SERVICES, INC. THIS AGREEMENT is made as of the date first written below by Qwest Broadband Services, Inc. (hereinafter "CenturyLink "), a corporation, the City of Columbia Heights, a Minnesota municipal corporation (the "City ") and [INSERT NAME] (hereinafter "Consultant "). WHEREAS, the City of Columbia Heights. Minnesota (the "City ") has granted CenturyLink a cable franchise in the form of an ordinance and agreement (the "Ordinance "); and WHEREAS, the City has the power to enforce and administer the Ordinance; and WHEREAS, Section 11.108 of the Ordinance authorizes the City to review and recompute franchise fees paid by CenturyLink and to require CenturyLink to provide all records necessary to confirm the accurate payment of franchise fees; and WHEREAS, the City has retained the Consultant to perform a review and recalculation of any amounts due to the City under the Ordinance ('Review "); and WHEREAS, conduct of the Review may require the Consultant to have access to certain information that may be considered by CenturyLink to be proprietary and confidential; and WHEREAS, in connection with the Review. CenturyLink may be required to produce documentation, notwithstanding any claims of confidentiality by CenturyLink; and WHEREAS, CenturyLink and the Consultant (hereinafter collectively the "Parties ") desire to enter into a working relationship which will permit the review of necessary documentation so that the Review can be completed, while providing reasonable assurances to CenturyLink that any documentation it produces that is legitimately considered confidential will not be publicly disclosed by the Consultant. to the extent permissible under applicable laws and regulations or this Agreement. NOW, THEREFORE, the Parties agree as follows: 1. This Agreement shall apply only to "Confidential Information." as defined herein. The purpose of the disclosure of Confidential Information hereunder shall be for the purpose of permitting the Consultant to perform the Review. The Consultant agrees to use the Confidential Information (defined below in Section 2) for such purpose and related actions (such as preparation of a report to City officials, and to enforce the terms of the franchise) in accordance with the terms of the franchise, the Ordinance and this Agreement. 2. The term "Confidential Information" shall mean and refer to all CenturyLink confidential or proprietary information, documents, and materials, whether printed or in machine - readable form or otherwise, including, but not limited to, processes, hardware, software, inventions, trade secrets, ideas, designs, research, know -how, business methods, production plans, marketing and branding plans, human resource policies, programs, and procedures relating to and including but not limited to organizational structure, management, marketing and branding strategies, products and services, customer service, human resource and employee benefit policies, programs, and services, and internal communication processes and technology tools. Confidential Information shall include all CenturyLink financial information, data, and records legitimately marked by CenturyLink as "Confidential" provided to the Consultant. 3. Subject to Sections 4 and 5 hereof: a. The Consultant agrees to use the same degree of care and scrutiny as they would use with respect to their own confidential information, but in any case using no less than a reasonable degree of care, to avoid, to the extent permissible under applicable law and this Agreement, disclosure, publication, or dissemination of any or all of the Confidential Information obtained hereunder; and b. Confidential Information will be kept confidential for a period of three (3) years from the date hereof and shall not, without the prior written consent of CenturyLink, be disclosed to a third party, except to the extent required or allowed by law, a court or this Agreement, by the Consultant, in any manner whatsoever, in whole or in part. 4. Consultant agrees that with respect to Confidential Information they will: a. Not use the Confidential Information other than in connection with the Review and related uses contemplated herein; b. At CenturyLink's reasonable request and at CenturyLink's sale cost, return promptly to CenturyLink or destroy (and confirm such destruction in writing to CenturyLink) any and all portions of the Confidential Information disclosed under this Agreement (including copies forwarded to subcontractors and /or agents), together with all copies thereof, that come into their possession; and c. Prepare a Review report to the City in accordance with Section 8 of this Agreement. Confidential Information may be used as reasonably necessary to defend such report's findings against any challenge by CenturyLink or a third party, under procedures mutually agreed upon by the Parties to assure confidentiality to the extent permissible under applicable law or this Agreement. 0 5. It is understood, however, that the foregoing provisions in Sections 1, 2, 3, and 4 above shall not apply to any portion of the Confidential Information which: a. Was previously known to either the City or Consultant without obligation of confidentiality pursuant to this Agreement; b. Is obtained by either the City or Consultant after the date hereof from a third party lawfully in possession of such information and which is not in violation of any contractual or legal obligation to CenturyLink with respect to such information; c. Is or becomes part of a public record or the public domain through no fault of either the City or Consultant or any of its or their respective employees, subcontractors, or agents; d. Is required to be disclosed by subpoena, statute, or administrative or judicial action provided that the City and the Consultant as soon as reasonably possible after notice of such action notifies CenturyLink of such action to give CenturyLink the opportunity to seek any other legal remedies to maintain such Confidential Information in confidence prior to the required disclosure. CenturyLink shall indemnify and hold harmless the Consultant and the City from any and all expenses of any type or nature which may occur to the Consultant or the City by reason of any legal or administrative proceedings pursued to protect the confidentiality of CenturyLink's records; or e. Is approved for disclosure and release by written authorization of CenturyLink. 6. All the Confidential Information disclosed to, delivered to or acquired by Consultant from CenturyLink hereunder shall be and remain the sole property of CenturyLink. 7. Disclosure of the Confidential Information disclosed by CenturyLink to Consultant shall not constitute any option, grant or license to either the City or Consultant of such Confidential Information under any patent, know -how, or other rights heretofore, now, or hereinafter held by CenturyLink. It is understood and agreed that the disclosure by CenturyLink of the Confidential Information hereunder shall not result in any obligation on the part of either party to enter into any further agreement with the other with respect to the subject matter hereof or otherwise. 8. Any final Review report prepared by Consultant that references or is based upon Confidential Information provided shall disclose such information only to the extent necessary to convey essential report information (e.g., as in a compilation, abstract or aggregation). Any such disclosure shall not be a violation of this Agreement. The Consultant shall provide CenturyLink a copy of their Review report prior to the public release of such report to the City, and CenturyLink shall notify Consultant within five (5) business days of such notice if it reasonably believes that the Review report contains Confidential Information (other than Confidential Information expressed as a compilation, abstract or aggregation) and the Parties shall negotiate in good faith changes to the Review report to prevent disclosure of Confidential Information (other than Confidential Information expressed as a compilation, abstract or aggregation). If disclosure of Confidential Information (other than Confidential Information expressed as a compilation, abstract or aggregation) is absolutely essential to the report, the Parties shall in good faith negotiate toward an agreed manner of presenting the information while protecting the interests of CenturyLink and the City. Consultant shall not release any confidential or proprietary information except in accordance with the terms of this Agreement. The Consultant shall have reasonable access to all requested documents. The requested documents shall be delivered to [INSERT NAMES] at the addresses set forth in Section 10. The Consultant shall be permitted to view and review such documents to the extent necessary to complete the Review and any subsequent enforcement proceeding pursuant to the Ordinance, and may take and retain any handwritten or typewritten (i.e., notes typed on a computer or similar device) notes they deem necessary. Such notes, to the extent they refer to or contain Confidential Information (other than Confidential Information expressed as a compilation, abstract or aggregation) in any manner, shall be deemed within the scope of this Agreement. 9. This Agreement is binding on the Parties, their successors and assigns. No modification of this Agreement shall be effective unless in writing and signed by the Parties hereto. 10. Notices hereunder shall be in writing and shall be deemed to have been delivered as of the day they are received when delivered personally, via certified mail, or via nationally recognized overnight courier: a. if to Consultant: Attention: [INSERT] b. if to City: c. if to CenturyLink: 11. CenturyLink's waiver of any breach or failure to enforce any of the terms and conditions of this Agreement at any time shall not in any way affect, limit, or waive its right thereafter to enforce and compel strict compliance with every term and condition hereof. 12. This Agreement shall be governed, construed and enforced in accordance with the laws of the State of Minnesota, without regard to its principles of conflicts of law. 13. This Agreement may be executed in counterparts and constitutes the complete agreement between the Parties hereto and supersedes and cancels any and all prior communications and agreements between the Parties with respect to the disclosure of Confidential Information related to the purposes described herein and the subject matter hereof. IN WITNESS HEREOF, the Parties hereby indicate their agreement this day of 20 [SIGNATURE BLOCKS] M EXHIBIT D INDEMNITY AGREEMENT INDEMNITY AGREEMENT made this day of , 2015, by and between Qwest Broadband Services, Inc., a Delaware Corporation, party of the first part, hereinafter called "CenturyLink," and the City of Columbia Heights, a Minnesota Municipal Corporation, party of the second part, hereinafter called "City." WITNESSETH: WHEREAS, the City of Columbia Heights has awarded to Qwest Broadband Services, Inc. a franchise for the operation of a cable communications system in the City of Columbia Heights; and WHEREAS, the City has required, as a condition of its award of a cable communications franchise, that it 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, 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 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 constituting a violation or breach by the City 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 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 shall cooperate with CenturyLink in the defense of any such action, suit or other proceeding at the request of CenturyLink. The City 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 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 and the counsel selected by CenturyLink to represent the City, Century Link shall pay, from the date such separate representation is required forward, all reasonable expenses incurred by the City 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 desires to hire a counselor any other outside experts or consultants and desires CenturyLink to pay those expenses, then City 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 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 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 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: 2 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 COLUMBIA HEIGHTS By Its: Department Head Responsible For Monitoring Contract Approved as to form: Assistant City Attorney CABLE TELEVISION FRANCHISE ORDINANCE ORDINANCE SUMMARY ORDINANCE NO.1624 AN ORDINANCE GRANTING A FRANCHISE TO QWEST BROADBAND SERVICES, INC., D /B /A CENTURYLINK TO CONSTRUCT, OPERATE AND MAINTAIN A CABLE SYSTEM IN THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, FOR THE PURPOSE OF PROVIDING CABLE SERVICE; 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 Columbia Heights, Minnesota 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. The specific terms and conditions of the Franchise Ordinance, Sections 11.101 to 11.114, and Exhibits are available for review at City Hall, 590 40th Avenue NE, Columbia Heights, MN 5 542 1. CH COLUMBIA HEIGHTS AGENDA SECTION PUBLIC HEARINGS ITEM NO. 8B MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: RESOLUTION 2015 -97, ADOPTING A BUDGET FOR THE YEAR 2016, SETTING THE CITY LEVY, APPROVING THE HRA LEVY, AND APPROVING A TAX RATE INCREASE. DEPARTMENT: Finance CITY MANAGER'S APPROVAL: BY /DATE: Joseph Kloiber /December 10, 2015 BY /DATE: 0 �� BACKGROUND: As required under the city charter, the city manager provided the city council with a proposed 2016 budget and tax levy at a regular council meeting in August. That proposed budget document explains the proposed 2016 budget and tax levy with 127 pages of summary and detail information, including comparisons to the current year and two prior years. This information was discussed and reviewed at four council work sessions. Specific information on the portion of the 2016 gross tax levy that will be paid by taxpayers outside of Columbia Heights, under the Area -Wide Fiscal Disparities Subsidy, was not available at the time the proposed budget was prepared. Staff subsequently determined this subsidy will be reduced for 2016 by $453,541. If the initially - proposed budget is not revised, under state statue the shortfall in the Fiscal Disparities subsidy automatically transfers to the local taxpayers' share of the tax levy. This would result in an average 2016 increase to the local taxpayer of approximately 16.5% for City purposes. Consequently, staff now proposes $453,541 of changes to the tax - supported portion of the 2016 budget. These changes, detailed on the attachment to this council letter, reduce the average 2016 increase for the local taxpayer to just under 9.9% for City purposes. This includes the 2016 voter - approved increase for construction of the new library. In addition to these changes to the tax - supported funds, the attached resolution includes changes to: • Reduce cable television broadcasting upgrades from High- Definition to Standard ($13,600) • Add 2016 payments under agreements for solar electric systems on four city buildings $3,100 • Defer two storm water pipe projects until funding is available ($575,000) STAFF RECOMMENDATION: The city manager and staff recommend approval of the 2016 budget and levy as stated in the attached resolution. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2015 -97, there being ample copies available to the public. MOTION: Move to close the public comment and adopt Resolution 2015 -97, being a resolution adopting a budget for the year 2016, setting the city levy, approving the HRA levy, and approving a tax rate increase. ATTACHMENTS: List of tax - supported budget changes Resolution 2015 -97 N N a c v�- rn Ja3 U s L }, 0 0 3 ° LS L J 0 0 M Q L Q o a L .n aD CL (D a a) COT E U (6 a CU c E a Cu �' C C O U � 0 0 0 O O 0 Co N O O x Cu a) O a) f�Q f�0 7 naaai � 0 � (OD Co v M L6 V 3 to Q S m u 0 LL C a n N a c V! K m r+ C C s U le LO 0 () L O a � 0 a o � a s a O U _ Y � a � a 0 x c a) U) _r_ a) E O O 0 w a M > o ._ a) M O a O (cQ C7 E U iC 0--a 0 O to O < y a) a) J .O (D a) E E O. N a N a) Z) W o o ti N L O a) Co c O U 7 a a) a) J O 7 U) le L0 LO d' a m a CD a) c O U T N N Co O C m L a a) Co 0 c y U (Q > O c fa to p a O O -0 $ a CD a '� to a) a) -0 c �_ L a) 4- a a — V a) w U-0 p f6 fu N .� O E O a Cn L E (n L > O f6 � s Q O L (D 2 ° a •- 0 0 0 ° M (0 0 t ! 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N a N a) Z) W o o ti N L O a) Co c O U 7 a a) a) J O 7 U) le L0 LO d' RESOLUTION NO. 2015 -97 A resolution of the City Council for the City of Columbia Heights, Minnesota, adopting a budget for the year 2016, setting the city levy, approving the HRA levy, and approving a tax rate increase. Whereas, on December 14th 2015, the City Council held a public meeting on the proposed 2016 budget and property tax levy; and Whereas, notice of this public meeting and the estimated effect of the proposed property tax levy was mailed prior to the hearing to each property owner by the County of Anoka, as required under the State of Minnesota Truth -in- Taxation statue; Now therefore, in accordance with all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: ORDER OF COUNCIL IT IS HEREBY RESOLVED: Section A. The budget for the City of Columbia Heights for the year 2016 is hereby approved and adopted with appropriations for each of the funds listed below. Expense Governmental Funds General Fund 11,022,668 Planning & Inspections 293,533 Economic Development Authority Admin. 295,216 Cable Television 134,122 Library 845,931 After School Programs 44,000 Special Project Fund 25,000 Public Safety - Other 169,412 Capital Project Funds 3,354,033 Debt Service Funds 1,755,169 Capital Bond Proprietary Funds Assets Principal Water Fund 3,073,042 935,290 241,028 Sewer Fund 2,352,584 82,290 35,000 Refuse Fund 1,981,991 0 0 Storm Sewer Fund 781,625 358,000 120,256 Liquor Fund 9,267,661 0 180,000 Central Garage 715,088 0 0 Building Maintenance 163,432 0 0 Information Systems 372,452 0 0 Total Including Interfund Transfers 36,646,959 1,375,580 576,284 City of Columbia Heights - Council Resolution 2015 -97 Page 2 Section B. The estimated gross revenues to fund the budget of the City of Columbia Heights for the year 2016, including general ad valorum tax levies and use of fund balances, are as listed below. RPVenuP Governmental Funds General Fund 10,978,668 Planning & Inspections 293,533 Economic Development Authority Admin. 294,050 Cable Television 230,900 Library 845,931 After School Programs - Special Project Funds 25,000 Public Safety - Other 169,412 Capital Project Funds 3,297,184 Debt Service Funds 1,828,947 Proprietary Funds Water Fund 3,210,400 Sewer Fund 1,849,500 Refuse Fund 1,928,500 Storm Sewer Fund 709,600 Liquor Fund 9,473,050 Central Garage 708,370 Building Maintenance 163,500 Information Systems 335,000 Use of Fund Balance 305,414 Total Including Interfund Transfers 36,646,959 Section C. The following sums of money are levied for the current year, collectable in 2016 upon the taxable property in the City of Columbia Heights, for the purposes listed below. Estimated General Fund Levy 8,641,452 Estimated Library Levy 813,999 Estimated EDA Fund Levy 78,023 Tota 1 9,533,474 Section D. The City Council of the City of Columbia Heights hereby approves the Columbia Heights Housing and Redevelopment Authority Tax Levy for the fiscal year 2016 in the amount of $202,364. City of Columbia Heights - Council Resolution 2015 -97 Page 3 BE IT FURTHER RESOLVED: That the County Auditor is authorized to fix a property tax rate for taxes payable in the year 2016 that is higher than the tax rate calculated for the City of Columbia Heights for taxes payable in 2015. BE IT FURTHER RESOLVED: That the City of Columbia Heights, pursuant to Resolution 2015 -07, has previously called and redeemed all bond principal and interest payments on General Obligation Bond Series 2007A applicable for taxes payable in 2016 in the amount of $137,255 and that the County Auditor is authorized to cancel the related Bond Levy in its entirety for taxes payable in 2016. BE IT FURTHER RESOLVED: That the City of Columbia Heights has adequate fund balances and reserves to pay bond principal and interest payments on General Obligation Bond Series 2008B in the amount of $439,360 and that the County Auditor is authorized to cancel $439,360 of the related Bond Levy for taxes payable in 2016, leaving a balance of $218,410 to be levied for taxes payable in 2016 for Series 2008B. BE IT FURTHER RESOLVED: That the City of Columbia Heights has adequate fund balances and reserves to pay bond principal and interest payments on General Obligation Bond Series 2009A in the amount of $4,091 and that the County Auditor is authorized to cancel $4,091 of the related Bond Levy for taxes payable in 2016, leaving a balance of $223,872 to be levied for taxes payable in 2016 for Series 2009A. BE IT FURTHER RESOLVED: That the City of Columbia Heights has adequate fund balances and reserves to pay bond principal and interest payments on General Obligation Bond Series 2013A in the amount of $104,787 and that the County Auditor is authorized to cancel the related Bond Levy in its entirety for taxes payable 2016. BE IT FURTHER RESOLVED: That the City of Columbia Heights has adequate fund balances and reserves to pay bond principal and interest payments on General Obligation Bond Series 2015A in the amount of $5,454 and that the County Auditor is authorized to cancel $5,454 of the related Bond Levy for taxes payable in 2016, leaving a balance of $480,000 to be levied for taxes payable in 2016 for Series 2015A. BE IT FURTHER RESOLVED: That the Finance Director /Treasurer of the City of Columbia Heights is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Anoka County, Minnesota. Passed this day of , 2015 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest Katie Bruno, City Clerk /Council Secretary CH COLUMBIA HEIGHTS CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: OTHER ORDINANCES AND AGENDA SECTION CITY MANAGER'S APPROVAL: BY /DATE: Kevin Hansen & Joseph Kloiber /December 9, 2015 RESOLUTIONS ITEM NO. 9A1 MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: UTILITY RATE STUDY UPDATE AND RECOMMENDATIONS DEPARTMENT: Public Works & Finance CITY MANAGER'S APPROVAL: BY /DATE: Kevin Hansen & Joseph Kloiber /December 9, 2015 BY /DATE: BACKGROUND: The City of Columbia Heights has previously conducted two utility rate studies for the development and implementation of equitable rate structures for sanitary sewer, storm sewer, and water utilities. Both of these have concluded with a 5- year rate structure, completed in years 2003 and 2007. A legislative mandate required the implementation of conservation rates in 2010; concurrent with this, a mid -term extension of the utility rates (3.0 %) was approved through 2014. The approved 5 -year rate structure for years 2010 — 2014 has concluded. Utility rates in 2015 were kept at the 2014 levels. Staff has reviewed operations, including the impacts of governmental mandates, the Capital Improvement Program (CIP), debt service, along with future projections, and is recommending a rate structure update for years 2016 — 2019. It should be reminded that the CIP for all utility departments was reduced over the original five -year rate study period by nearly fifty percent to lessen potential rate increases. This update examined our rates in terms of revenue and expenses and is making recommendations through 2019. The engineering consulting firm of TKDA has reviewed various rate scenarios for our water, sanitary sewer, storm sewer, and refuse enterprise departments. This was done to ensure that the necessary revenues would be available for debt repayment and the uninterrupted operation and maintenance of these services. The findings and recommendations are summarized below along with the attached tables. The final Utility Rate Study report is attached. The following are factors that are influencing the current operations of each Enterprise Fund: 1. The water, sanitary and refuse budgets are all impacted by service contracts (half the budget or greater): Sanitary by MCES for sewage disposal; Water for purchase from the MWW (under long -term contract); and Refuse to both our hauler contract and tipping fees. As an example, MCES fees have increased 4.5% and 5.5% in the last two years and our tipping fees have increased 68% since 2009. 2. The Sanitary Sewer Fund does not currently generate sufficient revenue to cover operating expenses. The 2015 CAFR shows a net shortfall of $200,000. 3. The Sanitary Sewer department has also experienced additional demands: internal aggressive sewer cleaning, 1/1 disconnect program, backflow prevention program; and externally the MCES 1/1 surcharge program - -that may add $125,000 per year until satisfactory 1/1 reductions are made. We have been able to offset the annual surcharge but most of the eligible expenses are now only credited at a 50% rate of cost. 4. The Water department budget has been impacted primarily in capital improvements with the addition of a cleaning and lining program under the City of Minneapolis annual program, and water main replacements. 5. The Storm Sewer Fund does not currently generate sufficient revenue to cover operating and debt service expenses. This situation will continue and likely worsen due in large part to the requirements of the City's NPDES Phase III permit and pending TMDL requirements, and capital investments. The 5 -year permit ( NPDES) was recently revised in June of 2014 increasing the demands of the department. 6. Capital Improvement Plan (CIP): The city's infrastructure is aging; while we are investing to address those needs with repairs, rehabilitation and replacement, it is Public Works opinion that the current levels are not adequate to meet the long- term need of our utility infrastructure needs. City of Columbia Heights - Council Letter Page 2 Table 1 (attached) shows the impact on various size families of the recommended annual rate adjustments for each of the years from 2016 to 2019. The following represents the average increase in the quarterly bill in both dollars and as a percentage: Average Family Utilitv Bill (increase): 2015 $0.00 0.00% 2016 $6.24 3.00% 2017 $13.24 6.20% 2018 $7.90 3.50% 2019 $8.21 3.50% Average: $7.12 3.24% STAFF RECOMMENDATION: Staff is recommending increases in each of the utility funds to address overall fund deficits, debt service for capital improvements, operational inflationary increases, and agency rate increases such as the Metropolitan Council Environmental Services, Minneapolis Water Works and Great River Energy (tipping fees). The recommended rates for the years 2015 through 2019 are on the attached resolution. As a percentage each year, the recommended rate increases for the commodity charges are as follows: Capital Improvement Program: After earlier rate increase recommendations approached 10 percent, staff has refocused and modified (reduced or delayed) the CIP to lower needed rate increases averaging 3.24% for years 2015 — 2019. Staff is also recommending suspending major capital improvements in one year, either 2017 or 2018, to allow the funds to recover from operating at a deficit. (See Cash Balance Table 2, attached.) Commercial Fixed Fee: In TKDA's review, they noted that commercial accounts are paying a fixed fee the same as on a residential unit basis creating a significant disparity from multi - family properties. The industry standard for non- residential accounts is to use meter sizes as the basis of rates for fixed fees. The following table proposes the fixed fee rates for non - residential customers: Water and Sewer Commercial Fixed Fee (based on metersize): # of Customers 0 Less than 1" 2015 2016 2017 2018 2019 Sanitary Sewer 0% 7% 8% 3.5% 3.5% Storm Sewer 0% 5% 8% 3.5% 3.5% Water 0% 3% 8% 3.5% 3.5% Refuse & Recycling 0% -2% 2% 3.5% 3.5% Capital Improvement Program: After earlier rate increase recommendations approached 10 percent, staff has refocused and modified (reduced or delayed) the CIP to lower needed rate increases averaging 3.24% for years 2015 — 2019. Staff is also recommending suspending major capital improvements in one year, either 2017 or 2018, to allow the funds to recover from operating at a deficit. (See Cash Balance Table 2, attached.) Commercial Fixed Fee: In TKDA's review, they noted that commercial accounts are paying a fixed fee the same as on a residential unit basis creating a significant disparity from multi - family properties. The industry standard for non- residential accounts is to use meter sizes as the basis of rates for fixed fees. The following table proposes the fixed fee rates for non - residential customers: Water and Sewer Commercial Fixed Fee (based on metersize): # of Customers 0 Less than 1" $ 47.21 87 • 1" meter $ 94.42 100 • 1.5" meter $118.03 79 • 2" meter $188.84 32 • 3" meter $424.89 9 • 4" meter and larger $755.36 4 Senior Citizen Rate: TKDA has suggested removing the senior citizen discount moving forward, the senior discounts that are in the past rate resolutions are only for the fixed fees for water and sanitary sewer, and the "any- size" refuse for the City of Columbia Heights - Council Letter Page 3 32 gallon price. Currently, there are 191 utility customers at the senior rate. This saves them about $20 to $30 per quarter, depending on whether they really get any value from full service refuse relative to the minimum refuse service. If the senior discount is put back in, the projected annual revenue would be reduced approximately as follows: • Water $4,000 reduction • Sanitary Sewer $4,000 reduction • Refuse — no measurable effect • Storm sewer $8,000 reduction Storm sewer is somewhat of a quandary as senior discounts for storm water have never been approved by Council and were not part of the original fee structure when the Storm Sewer fund was set up in 1999. If it is desired to leave the senior discount intact as in past rate resolutions, staff would recommend following the original intent and not providing a senior discount on the storm water rates. Based on the feedback at the November work session, the attached rate resolution has continues the Senior Rate Discount for Water, Sewer and Refuse, but it is not applied for storm water. RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2015 -98, there being ample copies available to the public. Move to adopt Resolution 2015 -98 establishing utility rates for Water Service, Sanitary Sewer Service, Storm Sewer and Refuse for 2016 through 2019. ATTACHMENT(S): Resolution 2015 -98 Final Utility Rate Study (2015) RESOLUTION NO. 2015 -98 A resolution of the City Council for the City of Columbia Heights, Minnesota, Whereas, a Utility Rate Study has been completed which has analyzed the past, current and future financial health of the City of Columbia Heights' Water, Sanitary Sewer, Storm Sewer and Refuse funds and; Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT In accordance M.S. 103G.29, and with the operating costs and rates to be paid by the City of Columbia Heights to the Metropolitan Council Environmental Services and the Minneapolis Water Department and other primary vendors of the City's utility funds, the following quarterly rates shall be effective for all billings rendered on or after January 1, 2016: 1. Water Supply Conservation Rates: Second tier rates established in section 2 below, apply as follows: • Residential Second tier rate is for water use greater than 25,000 gallons per quarter per dwelling unit. • Non - Residential - Less than 1 inch Meter Second tier rate is for water use greater than 25,000 gallons per quarter. • Non- Residential - 1 inch Meter or larger Second tier rate is for water use greater than 250,000 gallons per quarter. • Irrigation Meters: The Second Tier rate applies to all water run through sprinkler meters. 2. Water Supply Rates: Customer Classification Residential (Single Family) Fixed Fee Tier 1 ($/1000 gallons) Tier 2 ($/1000 gallons) Water Meter Surcharge Residential Multi - Family Fixed Fee (Per Dwelling Unit) Tier 1 ($/1000 gallons) Tier 2 ($/1000 gallons) Non - Residential Commercial Fixed Fee (Based on Meter Size) Less than 1" Meter 1" Meter Year 2016 2017 2018 2019 $ 25.25 $ 27.27 $ 28.22 $ 29.21 $ 3.79 $ 4.09 $ 4.23 $ 4.38 $ 4.73 $ 5.11 $ 5.29 $ 5.48 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 25.25 $ 27.27 $ 28.22 $ 29.21 $ 3.79 $ 4.09 $ 4.23 $ 4.38 $ 4.73 $ 5.11 $ 5.29 $ 5.48 $ 25.25 $ 27.27 $ 28.22 $ 29.21 $ 50.50 $ 54.54 $ 56.45 $ 58.43 Customer Classification 2" Meter 3" Meter 4" and Larger Meter Tier 1 ($/1000 gallons) Tier 2 ($/1000 gallons) 3. Sanitary Sewer Disposal Rates: Customer Classification Residential (Single Family) Fixed Fee Rate per 1000 Gallons Maximum Charge (per Bill) Residential Multi - Family Fixed Fee (Per Dwelling Unit) Rate per 1000 Gallons Non - Residential Commercial Fixed Fee (Based on Meter Size) Less than 1" Meter 1" Meter 1.5 " Meter 2" Meter 3" Meter 4" Meter Rate per 1000 Gallons Year 2016 2017 2018 2019 $ 101.00 $ 109.08 $ 112.90 $ 116.85 $ 227.25 $ 245.43 $ 254.02 $ 262.91 $ 404.00 $ 436.32 $ 451.59 $ 467.40 $ 3.70 $ 4.09 $ 4.23 $ 4.38 $ 4.73 $ 5.11 $ 5.29 $ 5.48 Year 2016 2017 2018 2019 Sanitary sewer volume rates apply as follows: $ 21.96 $ 23.72 $ 24.55 $ 25.41 $ 2.38 $ 2.57 $ 2.66 $ 2.75 $ 81.46 $ 87.97 $ 91.05 $ 94.16 $ 21.96 $ 23.72 $ 24.55 $ 25.41 $ 2.38 $ 2.57 $ 2.66 $ 2.75 $ 21.96 $ 23.72 $ 24.55 $ 25.41 $ 43.92 $ 47.43 $ 49.09 $ 50.81 $ 54.90 $ 59.29 $ 61.37 $ 63.52 $ 87.84 $ 94.87 $ 98.19 $ 101.63 $ 197.64 $ 213.45 $ 220.92 $ 228.65 $ 351.36 $ 379.47 $ 392.75 $ 406.50 $ 2.38 $ 2.57 $ 2.66 $ 2.75 • Residential use up to 25,000 gallons per quarter per dwelling unit, single and multi- family. • Non - residential use for all volume metered. 4. Storm Sewer Rates: Customer Classification R -1 Single Family Residential R -2 One and Two Family Residential R -3 Multi- Family Residential R -4 Multi- Family Residential RB Residential Business LB Limited Business District Year 2016 2017 2018 2019 $ 10.24 $ 11.06 $ 11.45 $ 11.85 $ 10.24 $ 11.06 $ 11.45 $ 11.85 $ 67.57 $ 72.98 $ 75.53 $ 78.17 $ 67.57 $ 72.98 $ 75.53 $ 78.17 $ 131.54 $ 142.06 $ 147.03 $ 152.18 $ 131.54 5142.06 5 147.03 8 152.18 GB General Business District CBD Central Business District I Light Industrial 1 -1 Heavy Industrial MWW Minneapolis Water Works 5. Residential Refuse: Service Size Year 30 Gallon Container 60 Gallon Container 90 Gallon Container 1 Yard Service 1 -1/2 Yard Service 2 Yard Service 3 Yard Service 4 Yard Service 6 Yard Service 8 Yard Service Per Dwelling Unit (1 -3 Units) Per Dwelling Unit (4 or More Units) $ 148.68 $ 160.57 $ 166.19 $ 172.01 $ 148.68 $ 160.57 $ 166.19 $ 172.01 $ 116.08 $ 125.37 $ 129.76 $ 134.30 $ 131.54 $ 142.06 $ 147.03 $ 152.18 $ 16.32 $ 17.63 $ 18.25 $ 18.89 2016 2017 2018 2019 $ 37.19 $ 37.95 $ 39.28 $ 40.65 $ 38.96 $ 39.75 $ 41.14 $ 42.58 $ 48.59 $ 49.58 $ 51.32 $ 53.11 $ 127.53 $ 130.13 $ 134.68 $ 139.40 $ 174.01 $ 177.56 $ 183.77 $ 190.21 $ 203.20 $ 207.35 $ 214.61 $ 222.12 $ 261.58 $ 266.92 $ 276.26 $ 285.93 $ 319.96 $ 326.49 $ 337.92 $ 349.74 $ 436.70 $ 445.61 $ 461.21 $ 477.35 $ 481.13 $ 490.95 $ 508.13 $ 525.92 $ 15.61 $ 15.93 $ 16.49 $ 17.06 $ 8.11 $ 8.28 $ 8.57 $ 8.87 Additional refuse information: • Quarterly prices shown are for weekly pickup. • Household recycling cost is based on every -other week collection. • Optional cart for yard waste is not included in the yard waste service price. Cart is available for an additional cost. • 90 gallon refuse service allows for additional trash bags not in container to be picked up. • 2 yard compacted service computed as 6 yard non - compacted. 6. Senior Utility Rates (same as residential, except as below): Owner- occupied Home Income - qualified Senior 2016 2017 2018 2019 Water - Fixed Fee $ 19.62 $ 21.19 $ 21.93 $ 22.70 Sanitary Sewer - Fixed Fee Sanitary Sewer Maximum Charge (per Quarter) Refuse -Any Size Container Up to 90 Gallons $ 16.17 $ 17.46 $ 18.07 $ 18.70 $ 75.67 $ 81.71 $ 84.57 $ 87.45 $ 37.19 $ 37.95 $ 39.28 $ 40.65 BE IT FURTHER RESOLVED that all foregoing rates do not include state fees or sales tax, and BE IT FURTHER RESOLVED that all state fees and taxes will be added to the utility bills in addition to the foregoing rates. ORDER OF COUNCIL Passed this 14th day of December, 2015 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk /Council Secretary UTILITY RATE STUDY COLUMBIA HEIGHTS, MINNESOTA Date: December 8, 2015 Project No. 15695.000 444 Cedar Street, Suite 1500 Saint Pout, MN 55101 651.292.4400 tkdo.com ,� i CERTIFICATION UTILITY RATE STUDY COLUMBIA HEIGHTS, MINNESOTA TKDA PROJECT NO. 15695.000 SAINT PAUL, MINNESOTA November 24, 2015 I hereby certify that this study was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of innesota. Verne E. Ja bsen, P.E. License No. 06988 I hereby certify that this study was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. ft F, & Matthew R. Ellingson, P.E. License No. 50352 UTILITY RATE STUDY COLUMBIA HEIGHTS, MINNESOTA TKDA PROJECT NO. 15695.000 INTRODUCTORY INFORMATION: Cover Certification Table of Contents SECTION TABLE OF CONTENTS PAGE NO. I. Introduction .....................:...................................................... ..............................1 II. Water Rate Schedule ............................................................... ..............................1 III. Financial Information ................................................................ ..............................1 IV. Future expenses ..................................................................... ..............................3 V. Recommended Rate Adjustments ........................................... ..............................3 VI. Commercial Fixed Fee ............................................................. ..............................4 VII. Senior Citizen Rates ............................................................. ............................... 4 VIII. Other Recommendations ......................................................... ..............................4 TABLES No. 1 — Volume of Water Sold for 2012 -2014 ............................................... ..............................1 No. 2 — Financial Information for 2011- 2014 ................................................. ..............................2 No. 3 — Recommended Rate Adjustments .................................................... ..............................3 No. 4 — Average Family Utility Bill Increase .................................................. ..............................4 No. 5 — Commercial Water and Sewer Quarterly Fixed Fee ......................... ..............................4 No. 6 — Proposed Utility Rates for 2016 - 2019 ............................................... ..............................5 No. 7 — Proposed Senior Citizen Utility Rates for 2016 -2019 ....................... ..............................7 No. 8 — Impact of Total Utility Bills for 2016 -2019 ......................................... ..............................8 No. 9 — Overall Cashflow with CIP Projects for 2016 - 2019 ........................... ..............................9 Columbia Heiahts I raffia ()nn Introduction TKDA staff has reviewed the Columbia Heights Annual Financial Reports for the years 2011, 2012, 2013 and 2014 along with the previous Water Utility Rate Study, dated March 17, 2010, which was prepared by another consultant in order to review the rate structures for the water, sanitary sewer, storm sewer, and refuse funds. The financial revenue projections for the 2010 Study estimated operating expenses and projected revenues that were based on historic data regarding water use and customer account data. Revenue obtained from water sales has been substantially less than the projected water sales volume due to cooler moist conditions and the potential impact of the conservation rate structure. Utility rates for the four utilities in 2015 remained the same as the 2014 rates. To provide for projected expenses, rate increases will be needed over the next 4 years. Three of the four utilities are impacted by service contracts as water is purchased wholesale from Minneapolis, sanitary sewer sewage disposal charges by MCES, and refuse to the City's hauler including tipping fees is contracted. For example, MCES fees have increased 4.5% and 5.5% in the last two years and the tipping fees have increased 68% since 2009, while all of the City's utility rates have only increased an average of 3% over the past few years. The City's increase was only an inflationary increase and did not match the increases reflected in the service contracts. Revenues will not meet the projected expenses and will result in a shortfall in the utility funds unless they adjusted going forward. See Table No. 9 at the end of this report for the projected overall cash flow for the water, sanitary sewer, storm sewer and refuse funds. Water Rate Schedule On January 1, 2010, the City adopted a water conservation rate structure as required to meet the requirements of the 2008 amendment of the Minnesota Statues. We recommended that the City continue the use of this rate structure with tiered rates as this allows the City to comply with the state statues. The volume of water sold for the last three years is shown in Table No. 1. The volume of water sales in recent years decreased every year and was substantially below the estimated water sales volume from the previous rate study which resulted in reduced revenue. Therefore, we have projected water volumes at 450,000,000 gallons for the next four years. Table No. 1 - Volume of Water Sold for 2012 -2014 Year Actual Gallons of Water Sold Projected Gallons Sold from Previous Rate Stud 2012 477,586,000 605,155,200 2013 464,387,000 609,332,800 2014 449,415,000 613,510,400 III. Financial Information The operating expenses along with operating income, other income and change in assets are shown in Table No. 2. Table No. 2 - Financial Information for 2011 -2014 Water Year Actual Operating Revenue Actual Operating Expenses Operating Income Loss Nonoperating revenue (expenses Transfers in (or out) Change in Net Assets 2011 $ 2,529,993 $ 2,268,270 $ 261,723 $ (23,920) $ (133,020) $ 104,783 2012 $ 2,771,763 $ 2,234,405 $ 537,358 $ (26,073) $ (133,344) $ 377,941 2013 $ 3,015,048 $ 2,260,526 $ 754,522 $ (91,766) $ (127,647) $ 535,109 2014 $ 2,796,280 1 $ 2,263,301 $ 532,979 1 $ 28,398 1 $ (129,980)1 $ 431,397 Sanitary Sewer Year Actual Operating Revenue Actual Operating Expenses Operating Income Loss Nonoperating revenue (expenses) Transfers in (or out) Change in Net Assets 2011 $ 1,521,142 $ 1,662,711 $ (141,569) $ 60,042 $ (138,905) $ (220,432) 2012 $ 1,579,864 $ 1,431,603 $ 148,261 $ 22,073 $ (133,342) $ 36,992 2013 $ 1,592,145 $ 1,484,571 $ 107,574 $ (19,859) $ (527,646) $ (439,931) 2014 $ 1,626,678 $ 1,739,023 $ (112,345) $ 49,310 $ (129,979) $ (193,014) Storm Sewer Year Actual Operating Revenue Actual Operating Expenses Operating Income Loss Nonoperating revenue (expenses Transfers in (or out) Change in Net Assets 2011 $ 349,964 $ 288,054 $ 61,910 $ (6,891) $ 8,750 $ 63,769 2012 $ 349,457 $ 321,110 $ 28,347 $ (4,715) $ - $ 23,632 2013 $ 367,218 $ 283,727 $ 83,491 $ (25,796) $ 400,000 $ 457,695 2014 $ 365,485 $ 301,160 $ 64,325 $ 39,957 1 $ 47,369 $ 151,651 Refuse Year Actual Operating Revenue Actual Operating Expenses Operating Income Loss Nonoperating revenue (expenses) Transfers in (or out) Change in Net Assets 2011 $ 1,682,178 $ 1,504,531 $ 177,647 $ 87,163 $ (117,859) $ 146,951 2012 $ 1,761,860 $ 1,558,793 $ 203,067 $ 122,971 $ (115,461) $ 210,577 2013 $ 1,826,226 $ 1,575,405 $ 250,821 $ 36,265 1 $ (115,544)1 $ 171,542 20141 $ 1,887,038 1 $ 1,650, 032 $ 237,006 $ 147,221 1 $ (117,081)1 $ 267,146 The water budget has been impacted primarily in capital improvements including the clean and line program with the City of Minneapolis and water main replacements. The cost of water purchased from Minneapolis is anticipated to increase at least 3% every year going forward based on preliminary projections from the City of Minneapolis. Sanitary sewer does not currently generate sufficient revenue to cover operating expenses as shown in the table above. Also, there will be more expenses in the sanitary sewer utility over the next years to cover the cost of the MCES infiltration /inflow (1 /1) surcharge program until 1/1 reductions are made. As long as there are 1/1 reduction projects those costs will offset the surcharge from MCES, but changes to the program may change eligible expenses to be credited at a 50% rate of the cost, so additional projects may be necessary. The storm sewer fund does not currently generate sufficient revenue to cover the operating and debt service expenses. This deficiency will increase because of the anticipated required capital improvement projects that will be needed due to the requirements of the City's NPDES Phase III permit and pending TMDL requirements. The current refuse contract goes through 2017 and the fund balance has been increasing over the past years; however, after the new contract is in place, a review of the expenses will be required to determine if a change in the refuse rates will be required. IV. Future Expenses Regarding the Capital Improvement Plan (CIP), the City's infrastructure is aging and investments need to be made to continue with required repairs, rehabilitation, and replacement of facilities. The current funding levels will not be adequate to meet the long term needs of the utility infrastructure needs. To estimate the future operating expenses, we used the 2014 operating expenses and then projected operating expenses to increase based on information obtained from Minneapolis for the water rates, MCES for the sanitary sewer, and the refuse hauling contract which goes until 2017. In order to obtain the revenue required to operate with reduced water sales many other cities now use a larger fixed rate charge per billing period and then have a volume based charge for the actual amount of water used. Columbia Heights already had a fixed rate in place, and we recommend continuing to use this rate structure. The reduced water sales also negatively impact the sanitary sewer fund, which is another reason the sewer rates will need to be adjusted. V. Recommended Rate Adiustments Utility rates in 2015 were kept at the 2014 levels and the recommended rate schedule adjustments are shown in Table No. 3. These adjustments are to address overall fund deficits, debt service for capital improvements, operational inflationary increases, and agency rate increases from Minneapolis Water Works, MCES, and Great River Energy for the tipping fees for refuse. Table No. 3 — Recommended Rate Adjustments The sanitary sewer rates are recommended to increase 7% in 2016 because the revenue is currently not sufficient to meet the operating expenses. To offset some the total impact to the quarterly utility bill it was decided to decrease the refuse rate in 2016 because the refuse fund has continually been increasing every year and has a surplus. After meetings with City staff it was determined that in order to build up fund reserves and be able to afford capital improvement projects the water, sanitary sewer, and storm sewer rates should increase 8% in 2017 with a modest 2% increase for refuse. The reason 2017 was chosen to have higher overall increases is because of the timing of the property tax increases and recommendations from City staff. Table No. 4 shows the impact on the average family 2015 2016 2017 2018 2019 Water 0.0% 3.0% 8.0% 3.5% 3.5% Sanitary Sewer 0.0% 7.0% 8.0% 3.5% 3.5% Storm Sewer 0.0% 5.0% 8.0% 3.5% 3.5% Refuse 0.0% -2.0% 2.0% 3.59/o 3.5% The sanitary sewer rates are recommended to increase 7% in 2016 because the revenue is currently not sufficient to meet the operating expenses. To offset some the total impact to the quarterly utility bill it was decided to decrease the refuse rate in 2016 because the refuse fund has continually been increasing every year and has a surplus. After meetings with City staff it was determined that in order to build up fund reserves and be able to afford capital improvement projects the water, sanitary sewer, and storm sewer rates should increase 8% in 2017 with a modest 2% increase for refuse. The reason 2017 was chosen to have higher overall increases is because of the timing of the property tax increases and recommendations from City staff. Table No. 4 shows the impact on the average family quarterly utility bill and Table No. 8 shows the impact on total utility bills for various customers including commercial accounts. Table No. 4 — Average Family Utility Bill Increase Year Dollar Increase Percentage Increase 2015 $0.00 0.00% 2016 $6.24 3.00% 2017 $13.26 6.20% 2018 $7.91 3.50% 2019 $8.22 3.50% —Average $7.14 3.24% VI. Commercial Fixed Fee In review of the fixed fee for water and sanitary sewer, the commercial customers are paying the same as a single residential unit, which is creating a significant disparity from the multi - family properties which are paying the fixed fee based on the number of dwelling units. Other Cities are using the water meter sizes for the basis of the fixed fee for the commercial customers. The following table shows the recommended fixed fee for commercial (non - residential) customers. This will make it more equitable for the multi - family properties that currently pay the fixed fee for each dwelling unit, which we are recommending to remain the same. Table No. 5 — Commercial Water and Sewer Quarterly Fixed Fee Meter Size Amount Number of Customers Less than 1 " $47.21 87 1), $94.42 100 1.5" $118.03 79 2" $188.84 32 3" $424.89 9 4" and larger $755.36 4 VII. Senior Citizen Rates We are recommending eliminating the senior citizen rate discount for water and sanitary sewer and the "any size" refuse container for slightly less than the 32 gallon price. There are not many other cities that have a discounted senior rate and the administrative hours for 191 utility customers does not seem to worth the extra effort to track and verify these accounts every year. However, if the City would like to continue with the Senior Citizen Rates for water, sanitary sewer, and refuse we have projected the future rates in Table No. 7. VIII. Other Recommendations It is recommended to review the revenue and expenses of the utilities on a yearly basis to determine the status of each of the utility fund accounts. Also, a rate study review is recommended to be done at the end of this rate setting period which goes until 2019. Table No. 6 is the proposed Utility Rates for 2016 -2019. Table No. 6 - Proposed Utility Rates for 2016 -2019 Water Percent Adjustment Residential (Single Family) Fixed Fee Tier 1 ($/1000 gal) Tier 2 ($/1000 gal) Water Meter Surcharge Multi - Familty Residential Fixed Fee (Per Dwelling Unit) Tier 1 ($/1000 gal) Tier 2 ($/1000 gal) Commercial Fixed Fee (Based on Meter Size) Less than 1" Meter 1" Meter 1.5" Meter 2" Meter 3" Meter 4" and Larger Meter Tier 1 ($/1000 gal) Tier 2 ($/1000 gal) Sewer Percent Adjustment Residential (Single Family) Fixed Fee Rate per 1000 gallons Maximum Charge (per Bill) Multi - Familty Residential Fixed Fee (per dwelling unit) Rate per 1000 gallons Commercial Fixed Fee (Based on Meter Size) Less than 1" Meter 1" Meter 5 Proposed Proposed Proposed 2016 2017 2018 4.00% 8.00% 3.50% $ 25.25 $ 27.27 $ 28.22 $ 3.79 $ 4.09 $ 4.23 $ 4.73 $ 5.11 $ 5.29 $ 3.00 $ 3.00 $ 3.00 $ 25.25 $ 27.27 $ 28.22 $ 3.79 $ 4.09 $ 4.23 $ 4.73 $ 5.11 $ 5.29 $ 25.25 $ 27.27 $ 28.22 $ 50.50 $ 54.54 $ 56.45 $ 63.13 $ 68.18 $ 70.57 $101.00 $109.08 $ 112.90 $227.25 $245.43 $ 254.02 $404.00 $436.32 $ 451.59 $ 3.79 $ 4.09 $ 4.23 $ 4.73 $ 5.11 $ 5.29 7.00% 8.00% 3.50% $ 21.96 $ 23.72 $ 24.55 $ 2.38 $ 2.57 $ 2.66 $ 81.46 $ 7.97 $ 91.05 Proposed 2019 3.50% $ 29.21 $ 4.38 $ 5.48 $ 3.00 $ 29.21 $ 4.38 $ 5.48 $ 29.21 $ 58.43 $ 73.04 $116.85 $262.91 $467.40 $ 4.38 $ 5.48 3.50% $ 25.41 $ 2.75 $ 94.16 $ 21.96 $ 23.72 $ 24.55 $ 25.41 $ 2.38 $ 2.57 $ 2.66 $ 2.75 $ 21.96 $ 23.72 $ 24.55 $ 25.41 $ 43.92 $ 47.43 $ 49.09 $ 50.81 Tier 2 water volume rates apply as follows: • Residential use over 25,000 gallons per quarter per dwelling unit, single and multi - family • Commercial use over 25,000 gallons per quarter, if meter size is less than 1" • Commercial use over 250,000 gallons per quarter, if meter size is 1" or larger • All volume recorded by irrigation system meters, regardless of residential or commercial use rel 1.5" Meter $ 54.90 $ 59.29 $ 61.37 $ 63.52 2" Meter $ 87.84 $ 94.87 $ 98.19 $101.63 3" Meter $197.64 $213.45 $ 220.92 $228.65 4" and Larger Meter $351.36 $379.47 $ 392.75 $406.50 Rate per 1000 gallons $ 2.38 $ 2.57 $ 2.66 $ 2.75 Storm Percent Adjustment 5.00% 8.00% 3.50% 3.50% R -1 Single Family Residential $ 10.24 $ 11.06 $ 11.45 $ 11.85 R -2 One and Two Family Residential $ 10.24 $ 11.06 $ 11.45 $ 11.85 R -3 Multi - Family Residential $ 67.57 $ 72.98 $ 75.53 $ 78.17 R -4 Multi - Family Residential $ 67.57 $ 72.98 $ 75.53 $ 78.17 RB Residential Business $131.54 $142.06 $ 147.03 $152.18 LB Limited Business District $131.54 $142.06 $ 147.03 $152.18 GB General Business $148.68 $160.57 $ 166.19 $172.01 CBD Central Business District $148.68 $160.57 $ 166.19 $172.01 1 Light Industrial $116.08 $125.37 $ 129.76 $134.30 1 -1 Heavy Industrial $131.54 $142.06 $ 147.03 $152.18 MWW Minneapolis Water Works $ 16.32 $ 17.63 $ 18.25 $ 18.89 Refuse Percent Adjustment -2.00% 2.00% 3.50% 3.50% 32 Gallon Container $ 37.19 $ 37.95 $ 39.28 $ 40.65 60 Gallon Container $ 38.96 $ 39.75 $ 41.14 $ 42.58 90 Gallon Container $ 48.59 $ 49.58 $ 51.32 $ 53.11 Recycle & Yard Waste $ 15.61 $ 15.93 $ 16.49 $ 17.06 Multiple Dwelling Refuse Unit (per dumpster) 1 yd service $127.53 $130.13 $ 134.68 $139.40 1 1/2 yd service $174.01 $177.56 $ 183.77 $190.21 2 yd service $203.20 $207.35 $ 214.61 $222.12 3 yd service $261.58 $266.92 $ 276.26 $285.93 4 yd service $319.96 $326.49 $ 337.92 $349.74 6 yd service $436.70 $445.61 $ 461.21 $477.35 8 yd service $481.13 $490.95 $ 508.13 $525.92 Recycling w/o yard waste $ 8.11 $ 8.28 $ 8.57 $ 8.87 Tier 2 water volume rates apply as follows: • Residential use over 25,000 gallons per quarter per dwelling unit, single and multi - family • Commercial use over 25,000 gallons per quarter, if meter size is less than 1" • Commercial use over 250,000 gallons per quarter, if meter size is 1" or larger • All volume recorded by irrigation system meters, regardless of residential or commercial use rel Tier 1 water volume rates apply to all other water use. Sanitary sewer volume rates apply as follows: • Residential use up to 25,000 gallons per quarter per dwelling unit, single and multi - family • Commercial use for all volume metered. Table No. 7 - Proposed Senior Citizen Utility Rates for 2016 -2019 Water Percent Adjustment 4.00% 8.00% 3.50% 3.50% Fixed Fee $ 19.62 $ 21.19 $ 21.93 $ 22.70 Tier 1 ($/1000 gal) $ 3.79 $ 4.09 $ 4.23 $ 4.38 Tier 2 ($/1000 gal) $ 4.73 $ 5.11 $ 5.29 $ 5.48 Water Meter Surcharge $ 3.00 $ 3.00 $ 3.00 $ 3.00 Sewer Percent Adjustment 7.00% 8.00% 3.50% 3.50% Fixed Fee $ 16.17 $ 17.46 $ 18.07 $ 18.70 Rate per 1000 gallons $ 2.38 $ 2.57 $ 2.66 $ 2.75 Maximum Charge (per Bill) $ 75.67 $ 81.71 $ 84.57 $ 87.45 Refuse Percent Adjustment -2.00% 2.00% 3.50% 3.50% Any Size Container $ 36.81 $ 37.56 $ 38.87 $ 40.23 Tier 2 water volume rates apply as follows: • Residential use over 25,000 gallons per quarter per dwelling unit, single and multi - family • Commercial use over 25,000 gallons per quarter, if meter size is less than 1" • Commercial use over 250,000 gallons per quarter, if meter size is 1" or larger • All volume recorded by irrigation system meters, regardless of residential or commercial use Tier 1 water volume rates apply to all other water use. Sanitary sewer volume rates apply as follows: • Residential use up to 25,000 gallons per quarter per dwelling unit, single and multi - family Commercial use for all volume metered. 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To be assigned a level, an offender must be released from a prison. Offenses such as Criminal Sexual Conduct, False Imprisonment, Soliciting a Minor to Engage in Prostitution, and 1St Degree Murder are some examples of offenses that qualify as predatory offenses. Currently there are five Level 3 offenders living in Columbia Heights and Hilltop. For comparison purposes, there are 11 Level 3 offenders living in all of Anoka County. Therefore, 45% of all Level 3 offenders in Anoka County are in Columbia Heights /Hilltop. In Columbia Heights /Hilltop, there is one Level 3 offender for every .7 square miles. The rest of Anoka County has one Level 3 offender for every 74.33 square miles. Hennepin County has restricted placement of Level 3 offenders in four zip codes in North Minneapolis. They have also restricted who they will allow to transfer into Hennepin County from other locations based on several factors such as family and whether there is a support system for the offender where they want to live. Brooklyn Center has put a moratorium on new Level 3 offenders being placed in their city, and has adopted an ordinance restricting where future offenders may reside. Brooklyn Center has a density of one offender per 1.39 square miles. The City of Hilltop has also adopted an ordinance establishing a moratorium on Level 3 offenders locating within their city. STAFF RECOMMENDATION: The Police Department recommends approval of this emergency ordinance in order to provide an opportunity to study this issue and its effects on our city. If adopted, this ordinance would take effect immediately and be in effect for one year. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Emergency Ordinance No. 1625, being an ordinance establishing a moratorium regulating the residency location of predatory offenders within the city, there being ample copies available to the public. MOTION: Move to adopt Emergency Ordinance No. 1625, being an ordinance establishing a moratorium regulating the residency location of predatory offenders within the city, and to publish a summary ordinance. ATTACHMENTS: Ordinance 1625 Summary Ordinance EMERGENCY ORDINANCE NO. 1625 ORDINANCE ESTABLISHING A MORATORIUM REGULATING THE RESIDENCY LOCATION OF PREDATORY OFFENDERS WITHIN THE CITY WHEREAS, predatory offenders present a significant threat to the public safety of the community as a whole, especially children, females, and vulnerable populations. Predatory offenders are likely to use physical violence and to repeat their offenses. The cost of predatory offender victimization to society at large, while not precisely calculable, is significant; and WHEREAS, the City Council finds that a disproportionately high number of predatory offenders are being placed in the City and it is in the best interest of the public to study and consider options for addressing and minimizing the public safety impacts of such placements; and WHEREAS, the City may amend and enact ordinances and regulations under its police powers as it sees fit, including through the adoption of moratoria and temporary regulations enacted to allow the City sufficient time to prepare and adopt permanent regulations; and WHEREAS, the City does not currently have an ordinance regulating the location of predatory offenders within its boundaries; and WHEREAS, the City has a compelling interest in promoting, protecting and improving health, safety and general welfare of the City's citizens; and WHEREAS, the City needs to study and evaluate the need to limit /prohibit certain predatory offenders from establishing temporary or permanent residence in certain locations where children are known to regularly congregate in a concentrated number; and WHEREAS, the Council has under consideration a temporary ordinance limiting the residency location of predatory offenders in order to study and consider a permanent ordinance limiting the residency location of predatory offenders within the City. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Columbia Heights, Minnesota, as follows: Section 1. Definitions The following words, terms, and phrases, when used in this Ordinance, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: 1.01 "Child" means any person under the age of eighteen (18). 1.02 "Designated predatory offender" means any person who has been categorized as a Level 111 predatory offender under Minnesota Statutes, Sec. 244.052, any successor statute, or a similar statute from another state in which that person's risk assessment indicates a high risk of re- offense. 1.03 "Permanent residence" means a place where a person abides, lodges, or resides for 14 or more consecutive days, 1.04 "Temporary residence" means a place where a person abides, lodges, or resides for a period of 14 or more days in the aggregate during any calendar year and which is not the person's permanent address, or a place where the person routinely abides, lodges, or resides for a period of four or more consecutive or non - consecutive days in any month and which is not the person's permanent residence. 1.05 "School" means a public or non - public elementary or secondary school. 1.06 "Licensed child care center" means a group child care center currently licensed by the applicable County or the State of Minnesota. 1.07 "Public playground" means a publicly- owned, improved park or other outdoor area designed, equipped, and set aside primarily for children's play. Section 2. Temporary Regulations on Predatory Offenders 2.01 It shall be unlawful for any designated predatory offender to establish a permanent or temporary residence within 2,000 feet of any school, licensed child care facility, public playground, or any other place where children are commonly known to regularly congregate. 2.02 For purposes of determining the minimum distance separation required by this Section, the requirement shall be measured by following a straight line from the outer property line of the permanent or temporary residence of the designated predatory offender to the nearest outer property line of the protected property. 2.03 A designated predatory offender residing within a prohibited area as described in this Section does not commit a violation of this Ordinance if any of the following apply: A. The person established the permanent or temporary residence and reported and registered the residence pursuant to Minnesota Statutes, Sec. 243.166 and 243.167 or any successor statute, prior to the effective date of this ordinance; B. The school, licensed child care center, or public playground within 2,000 feet of the person's permanent or temporary residence was opened after the person established such residence and reported and registered the residence pursuant to Minnesota Statutes, Sec. 243.166 and 243.167, or any successor statute; C. The residence is also, as of the effective date of this ordinance, the primary residence of the person's parents, grandparents, siblings, or spouse; or D. The residence is a property purchased, leased, or contracted with and licensed by the Minnesota Department of Corrections prior to the effective date of this ordinance. 2.04 The regulations imposed by this Section shall be in effect for a period of one year from the date of its adoption, until the final adoption of an amendment to the City Code regarding the residency location of predatory offenders, or upon its express repeal by the City Council, whichever occurs first. Section 3. Enforcement 3.01 A violation of this Ordinance shall be a misdemeanor. In addition, the City may enforce this Ordinance by mandamus, injunction, or other appropriate civil remedy in any court of competent jurisdiction, or through any administrative penalties program of the City Code. Section 4. Study of Issues 4.01 City staff is directed to study the impacts of the residency of predatory offenders within the City and determine if further or different limits to residency restrictions for such offenders will further protect the needs of the public. Staff is further directed to draft amendments to the current City Code as may be necessary to further the goals expressed above for consideration by the City Council. Section 5. Effective Date 5.01 This Ordinance shall become effective immediately upon its adoption. Date of Passage: December 14, 2015 Mayor Gary L. Peterson Attest: Katie Bruno City Clerk/Council Secretary SUMMARY ORDINANCE NO. 1625 AN ORDINANCE ESTABLISHING A MORATORIUM REGULATING THE RESIDENCY LOCATION OF PREDATORY OFFENDERS WITHIN THE CITY The City Council of the City of Columbia Heights has adopted Emergency Ordinance No. 1625. The purpose and intent of this ordinance to direct city staff to study the impacts of the residency of predatory offenders within the City and determine if further or different limits to residency restrictions for such offenders will further protect the needs of the public. The full text of Ordinance No. 1625 is available for inspection at Columbia Heights City Hall during regular business hours. Approved for publication by the City Council of the City of Columbia Heights, Minnesota this 14th day of December, 2015. Katie Bruno, City Clerk CH COLUMBIA HEIGHTS AGENDA SECTION BID CONSIDERATION ITEM NO. 9B1 MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: ADOPT RESOLUTION 2015 -104 BEING A RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT FOR 2015 SANITARY SEWER LINING, CITY PROJECT NO. 1504 DEPARTMENT: Public Works CITY MANAGER'S APPROVAL: BY /DATE: Kevin Hansen / December 7, 2015 BY /DATE: BACKGROUND: On September 28, 2015 the City Council authorized staff to seek bids for the Sanitary Sewer Lining program. This is an annual program to rehabilitate sections of sanitary sewer pipe that have been televised and found to be deteriorating, have cracked or broken joints or sections, contain root intrusion or have infiltration present. This project consists of lining the following segments: 1. 12" VCP on 37th Place from 37th Avenue to Stinson Boulevard 655 L.F. 2. 12" VCP on Stinson Boulevard from 37th Place to 3900 Stinson Boulevard 1,135 L.F. 3. 8" VCP on Stinson Boulevard from 3900 to 4004 Stinson Boulevard 590 L.F. 4. 8" VCP on Stinson Boulevard from Silver Lake Beach to 45th Avenue 1,610 L.F. 5. 8" VCP on 45th Avenue from Chatham Road to Stinson Boulevard 470 L.F. STAFF RECOMMENDATION: Plans and specifications were advertised for bids in the Sun Focus on November 6, 2015. Six contractors received copies of the bidding documents. Six bids were received and publicly read aloud at the December 8, 2015 bid opening. A copy of the minutes is attached. The project also includes an alternate for installing up to 15 main to service lateral connection liners as directed by the Public Works Director. Visu- Sewer, Inc. submitted the low base bid in the amount of $97,414.25. The unit price for the sanitary sewer main lining work is $24.25 per lineal foot for 12" pipe and $20.25 per lineal foot for 8" pipe. The add alternate unit price for main to service connection liners is $2,535. These unit prices are less than 2014 project unit prices of $28 for 10 -inch pipe and $27 for 8 -inch pipe. The 2015 budget amount for lining is $165,000. RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2015 -104, there being ample copies available to the public. Move to adopt Resolution 2015 -104, being a resolution accepting bids and awarding the contract for 2015 Sanitary Sewer Lining, City Project No. 1504 to Visu -Sewer of Pewaukee, Wisconsin based upon their low, qualified, responsible base bid in the amount of $97,414.25 and accepting Alternate 1 in the amount of $38,025 for a total contract award of $135,439.25, with funds to be appropriated from Fund 652 - 51504 -5185; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. ATTACHMENT(S): Bid Opening Minutes Resolution 2015 -104 CITY OF COLUMBIA HEIGHTS Minutes of Bid Opening on Wednesday, December 8, 2015, at 10:00 a.m. 2015 Sanitary Sewer Lining City Project 1504 Pursuant to an advertisement for bids for the 2015 Sanitary Sewer Lining, City Project 1504, an administrative meeting was held on December 8, 2015 at 10:00 a.m. for the purpose of bid opening. Attending the meeting was: Kevin Hansen, City Engineer Sue Schmidtbauer, Public Works Secretary Lauren McClanahan, Utilities Superintendent Jake Jorgenson, Lametti & Sons, Inc. Mitch Hoeft, Insituform Technologies Greg Ranta, Hydro -Klean Bids were opened and read aloud as follows: Bidder Base Bid Alt. 1 Base Bid with Alt. 1 Visu -Sewer Inc. $ 97,414.25 $ 38,025.00 $ 135,439.25 Michels Corporation $ 108,547.75 $ 37,740.00 $ 146,287.75 Insituform Technologies $ 116,831.00 $ 39,000.00 $ 155,831.00 Veit & Company, Inc. $ 123,042.00 $ 37,500.00 $ 160,542.00 Lametti & Sons, Inc. $ 124,868.00 $ 39,000.00 $ 163,868.00 Hydro -Klean $ 132,708.00 $ 50,898.75 $ 183,606.75 Respectfully submitted, Sue Schmidtbauer Public Works Secretary RESOLUTION NO. 2015 -104 A resolution of the City Council for the City of Columbia Heights, Minnesota, Whereas, pursuant to an advertisement for bids for City Project No. 1504, Sanitary Sewer Lining bids were received, opened and tabulated according to law. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT The following bids were received complying with the advertisement: Bidder Base Bid Alt. 1 Base Bid with Alt. 1 Visu -Sewer Inc. $ 97,414.25 $ 38,025.00 $ 135,439.25 Michels Corporation $ 108,547.75 $ 37,740.00 $ 146,287.75 Insituform Technologies $ 116,831.00 $ 39,000.00 $ 155,831.00 Veit & Company, Inc. $ 123,042.00 $ 37,500.00 $ 160,542.00 Lametti & Sons, Inc. $ 124,868.00 $ 39,000.00 $ 163,868.00 Hydro -Klean $ 132,708.00 $ 50,898.75 $ 183,606.75 It appears that Visu- Sewer, Inc. of Pewaukee, Wisconsin 53072 is the lowest responsible bidder. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA: The Mayor and City Manager are hereby authorized and directed to enter into a contract with Visu- Sewer, Inc. in the name of the City of Columbia Heights, for the 2015 Sanitary Sewer Lining, City Project No. 1504, according to plans and specifications therefore approved by the Council. The City Engineer is hereby authorized and directed to return, forthwith, to all bidders, the deposits made with their bids except the deposit of the successful bidder and the next lowest bidder shall be retained until the contract has been signed. City Project No. 1504 shall be funded from the Sanitary Sewer Construction Fund. ORDER OF COUNCIL Passed this 14th day of December, 2015 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk /Council Secretary CH COLUMBIA HEIGHTS AGENDA SECTION BID CONSIDERATION ITEM NO, 9B2 MEETING DATE DECEMBER 14, 2015 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: ACCEPT PROPOSALS AND AWARD CONTRACT FOR ENGINEERING SERVICES FOR WATER TOWER REHAB, PROJECT 1507 DEPARTMENT: Public Works CITY MANAGER'S Af PROVAL: BY /DATE: Kevin Hansen / December 7, 2015 BY /DATE: BACKGROUND: City staff had interior /exterior inspections conducted of the City's water tower in 2003 and in 2008. The AWWA recommends this practice to be conducted approximately every five years on steel water tanks to analyze and ensure the integrity of the structural condition and coatings of the steel tank. Coating systems for steel water tanks have a life expectancy of 15 -20 years. The City's only water tower is a 250,000 - gallon single pedestal, welded steel design located at 4650 Stinson Boulevard. The last major renovation was in 1996 when the interior and exterior were repaired and recoated with a lead free epoxy. Based upon the 2008 inspection report, structural and spot coatings repairs were identified at an estimated cost of $110,000, in 2008 dollars. Recognizing the age of the interior and exterior coatings, staff evaluated conducting a spot repair program in 2009 or 2010, and weighed that against a complete repainting that would be scheduled in 2015. Rather than spending over $100,000 in 2009 or 2010, and again spending $500,000 in 2015, staff recommended eliminating a spot repair program and waiting for the tank to have the interior and exterior coatings replaced. It is also most cost - effective to have the interior done at the same time as the exterior. STAFF RECOMMENDATION: The RFP included the past two inspection reports and detailed the requirements for the design, inspection and coordination with communication carriers for rehabilitating the water tower. Four proposals were received on November 13th in response to the RFP (attached). Proposals were evaluated on the following criteria: (50% of total review score): • Understands Requirements • Approach /Schedule • Scope / Work Program • Qualifications / Project Team (50% of total review score): • Fee structure. Proposal Fees were as follows: KLM $42,605 Bolton & Menk $43,000 SEH $46,150 ISG $49,524 • Firm Experience • Past Performance • References /Resources • Written Proposal City of Columbia Heights - Council Letter The proposals were reviewed by staff with the following weighted results: Firm: Bolton & Menk ISG KLM S E H WEIGHTED SCORES 50 pts (weighted) 50 pts (weighted) 100 pts possible 50% 50% Response tc RFP Fees TOTAL: 40.21 46.25 86.46 35.21 38.13 73.33 39.17 46.75 85.92 39.58 42.31 81.90 Page 2 Staff is therefore recommending accepting the proposal from Bolton and Menk in the amount of $43,000. RECOMMENDED MOTION(S): Move to award Engineering Services for the Water Tower Rehab, Project 1507, to the firm of Bolton and Menk based upon their proposal dated November 13, 2015 for a lump sum fee of $43,000 plus reimbursables, appropriated from Fund 651 - 51507 -3050. ATTACHMENT(S): Water Tower RFP REQUEST FOR PROPOSALS (R.F.P.) COLUMBIA HEIGHTS, MINNESOTA ELEVATED WATER STORAGE TANK INTERIOR AND EXTERIOR REHABILITATION INTRODUCTION The City of Columbia Heights is requesting proposals to provide professional services for Full Service design, inspection and contract administration of the interior and exterior of the City's water tower storage tank. The water tank is located at 4650 Stinson Boulevard. II. GENERAL REQUIREMENTS Interested companies should submit their proposal no later than 3:30 P.M. on November 13th, 2015, to the Director of Public Works, 637 38th Ave. N.E., Columbia Heights, MN 55421. In submitting a proposal to provide the required services, the following is required in order to expedite the review process by the representatives of the City. The length of the proposal should not exceed 5 pages, excluding figures, resumes of personnel, firm experience and qualifications, etc. The proposal should not contain non - applicable promotional materials and should address only the points requested in this document, including proposed time schedule to complete the work and associated fees. If requested elsewhere in this RFP, provide separate schedules and fees for separate sections of work. 3. A schedule of the most current billing rates for individuals involved must be included with a total cost to complete the work in the specified time frame. 4. Three copies of the proposal should be addressed to the Director of Public Works /City Engineer, 637 38th Ave. N.E., Columbia Heights, Minnesota, 55421, to be received by 3:30 P.M. November 13th, 2015. 5. If the firm is proposing to use subcontracts, the subcontractor should be identified along with how the work will be divided. 6. The City of Columbia Heights reserves the right to reject any proposal that does not comply with the requirements of this R.F.P. III. BACKGROUND INFORMATION 250,000 Gallon Single Pedestal Spheroid Tank RFP — Water Tower Rehabilitation Page 2 Chicago Bridge and Iron Company constructed the tank in 1975. The tank interior was painted in 1983 and 1996. The interior painting in 1983 consisted of the following: One patch coat of Tnemec Hi -Build Epoxoline Primer (red) applied at 4.0 mils dry film thickness followed by one complete coat of Tnemec Hydro -Pox Epoxy Coating #20 -1235 (white) applied at 6.0 mils dry film thickness. The tank was inspected and repaired in 1994. The original paint coating on the water tower had failed at the weld seams. Subsequent investigation found that the thickness of the finish cover at the seams varied from 18 to 24 mils. The interior and exterior of the tank was repainted in 1996: One coat of Tnemec Series 20 -1255 Pota Pox Primer (Beige) applied to unpainted areas at 4.0 mils dry film thickness, followed by one complete coat of Tnemec Series 20 -2000 Pota -Pox (white) applied at 7.0 mils dry film thickness. In 1997, the City of Columbia Heights began leasing antenna space on the water tower to Sprint PCS. In 2003, the City began leasing space to Anoka County for their 800 Mhz trunk digital radio system. In 2008, the City began leasing antenna space on the water tower to Clearwire Communications The water tower was inspected in 2008 and again in 2014. Copies of those inspection reports are attached and are the basis of this RFP. The following represents the general scope of services: 1) Design 2) Cellular / Anoka County Equipment relocation 3) Construction Administration and Inspection including NACE certified inspectors 4) Final Inspection and project closeout 5) Warranty Inspection IV. SCOPE OF SERVICES The following items shall be required as part of this project: The City's 2015 -2016 Capital Improvement Plan includes $600,000 to complete this project. This estimated cost includes all construction and overhead costs. Work for all items will be included in a single set of plans and specifications for public bidding purposes. The proposal shall include the following: DESIGN b) PLANS AND SPECIFICATIONS • Review and update recommendations to the 2014 Inspection Report. • Prepare contract documents and technical specifications to supplement Citv standard construction RFP — Water Tower Rehabilitation Page 3 • Meet with City staff to review plans and specifications. • Contact cellular tenants and coordinate antenna removal and reinstallation. • Produce copies of plans /specifications for bidding purposes by contractors. Plans/ specifications will be sold from the Consultant's office. A plan holders list will be provided to the City. • Prepare a final Engineer's Estimate of the rehabilitation cost of the tower and estimated completion based on the final plans. • Prepare permit applications to appropriate State Agencies as required. • Include a project SWPPP • Work shall include a new logo on the tower based on the City of Columbia Heights' recent 'rebranding campaign.' • Provide the City with an electronic copy of the project design files, including addenda. c) BIDDING • Prepare advertisement for bids and submit to required publications. • Conduct a pre -bid meeting (indicate in your proposal if recommended) • Respond to and provide answer's to bidder's questions. • Issue addendum(s), as required. • Attend bid opening and tabulate results. • Prepare recommendation letter of bids and contract award to City Council. • Prepare Notice of Award and Contract Agreement and forward to Contractor. 2. CELLULAR /ANOKA COUNTY EQUIPMENT RELOCATION a) TENANTS • Anoka County • Sprint • Clearwire • Independent Ham Radio b) RELOCATION ADMINISTRATION • Communicate with individual tenants on relocation of their facilities. (1) Contact cellular tenants and coordinate antenna removal and reinstallation. • Inspect cellular tenant's reinstallation of their facilities including shop drawings. c) INVOICING • Consultant shall invoice for all telecommunication services separately when submitting pay requests. 3. CONSTRUCTION SERVICES a) CONSTRUCTION OBSERVATION / INSPECTIONS • Perform observation and keep daily records of the construction activities of the prime contractor and any of their subcontractors. NACE certified inspector is required to observe and inspect work. • Inspection of the structural repairs and modifications for conformance to the specifications. • Inspection of the abrasive blasting media and equipment • Monitoring the paint removal and abatement process for the conformance to the specifications and environmental regulations. • Monitoring the coating mixing and application for adherence to the specifications and coating manufacturer recommendations. RFP — Water Tower Rehabilitation Page 4 • Approve surface prep samples. • Prepare and file copies of reports on the construction activities. • Work directly with residents and property owners to answer questions and respond to construction related issues. • Prepare a written weekly update on the status of the project and meet on -site with City staff on a weekly basis during active work periods. A weekly summary shall also be provided for use in updating the public on the project progress. • Upon substantial completion, prepare "punch list." • Coordinate and review testing of materials. • Prepare final inspection letter. b) CONSTRUCTION ADMINISTRATION • Provide notification and conduct and preconstruction conference including meeting minutes. • Periodically perform on -site review of project's work and status and report to the City. • Coordinate progress meetings as necessary. • Prepare monthly payment request forms for City approval. • Prepare Change Orders and other written directives as necessary. • Prepare letter of final review and acceptance. • Review, approve and /or comment as appropriate of Contractor submittals and all information to be used for construction in accordance with the plans and specifications including: o Shop drawing review o Welder qualifications / certifications / procedures o Coating materials o Containment plan o TLCP sampling plan o Spent material collection and disposal o City Lettering and logo 4. FINAL INSPECTION a) FINAL REVIEW • Conduct final review of project. (1) Follow up with Contractor and verify completion of punch list items. • Prepare Engineer's recommendation of project final completion. • Provide the City of Columbia Heights with As -Built record drawings of the project in an electronic format. 5. WARRANTY INSPECTION a) Provide a Two Year warranty inspection. The warranty inspection shall be performed utilizing a Remote Operated Vehicle (ROV). Divers will not be considered an equivalent form of inspection. V. PROPOSAL CONTENTS 1. Protect Approach rt- _..1J -_ti_ -�L_ C:...-- I- ..._J .__u.__ _r�i_ _ - _r.1_ - RFP — Water Tower Rehabilitation Page 5 task -by -task description of the work to be accomplished. Merely restating the scope of services will not be acceptable. Schedule Should include a schedule depicting the task activities, their inter - relationships, and the projected completion dates. It should also contain a discussion of the firm's total staffing and its procedures for maintaining schedule compliance in the event of unforeseen delays or other such circumstances. Proiect Personnel Should outline the general responsibilities of the firms to be involved if more than one. Should also contain the names of personnel with key responsibilities for the work and a description of their role and duties for this job. It must also include an organizational chart for these people, delineating responsibilities and showing lines of authority and communication. It should also contain biographical resumes of these individuals with emphasis on their background on comparable projects and similar roles to those proposed for this project. 4. Relevant Experience Should discuss demonstrated experience of firm and project team with studies of similar scope and magnitude to the proposed study. Performance Should demonstrate the ability of the firm to perform the project in a timely and cost - effective manner. 6. References Should contain references that may be contacted for the similar studies discussed in the Experience and Performance Sections. Schedule of Rates and Charges Should contain a schedule of hourly billing rates for each category of professional, technical and clerical employee. Specifically, provide an hourly rate for each employee who may be involved in this project. Also, include rates of miscellaneous charges, such as copies, mileage, etc. S. Benefits to Columbia Heights All things considered, summarize why you believe the City of Columbia Heights should retain your firm to perform this project. RFP — Water Tower Rehabilitation Page 6 VI. EVALUATION CRITERIA AND SELECTION PROCEDURES Please provide the following information in your proposal. All Proposals will be evaluated on the following criteria: (50% of total review score): Demonstrated understanding of the requirements of this project and the concerns of the City of Columbia Heights. Relevance and suitability of the overall project approach and schedule. Detail, scope and program for the Implementation Report. Qualifications and expertise of the key personnel assigned to this project and their ability to work together as a team on similar projects. Experience of the firm and project team to complete a rehabilitation of the City's water storage tank. Record of past performance on similar projects. Comments and opinions provided by references. Resources of the firm to conduct and complete this project in a satisfactory manner. (50% of total review score): Price and proposed completion date. VI. Limitations, Terms and Conditions This Request for Proposal does not commit the City of Columbia Heights to award a contract, pay costs incurred in the preparation of a proposal or to procure a contract for services or supplies. The City of Columbia Heights reserves the right to accept or reject any or all proposals received as a result of this request, to negotiate with any qualified source, or to cancel in part or entirety this Request for Proposal if it is in the best interest of the City of Columbia Heights to do so. If, for any reason, the firm selected is not able to commence services under its proposal within 30 days after its award, the City reserves the right to award the contract to the next most qualified firm. The City will retain ownership of all reports prepared under the proposal. This proposal will be the only submittal for firm selection. The firm that the City believes to be the best qualified based on the criteria above will be invited to enter into negotiations to perform this project. If you have any questions, please contact me at 763 - 706 -3705. Yours truly, Kevin R. Hansen, PE Public Works Director /City Engineer KRH