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HomeMy WebLinkAboutCity Council - 02/02/2016 AGENDA CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY,FEBRUARY 2, 2016 CITY CENTER 5:00—6:25 PM, HERITAGE ROOMS 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Kathy Nelson, and Ron Case CITY STAFF: City Manager Rick Getschow, Police Chief Rob Reynolds, Fire Chief George Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Attorney Dan Gregerson, and Recorder Lorene McWaters Workshop-Heritage Room II(5:30 p.m.) I. STATEWIDE MULTI-MODAL TRANSPORTATION AND HIGHWAY INVESTMENT PLANS (Presentation by MNDOT) Open Podium - Council Chamber(6:30 p.m.) II. OPEN PODIUM III. ADJOURNMENT AGENDA EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, FEBRUARY 2, 2016 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Kathy Nelson, and Ron Case CITY STAFF: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, City Attorney Dan Gregerson and Council Recorder Jan Curielli I. CALL THE MEETING TO ORDER II. PLEDGE OF ALLEGIANCE III. COUNCIL FORUM INVITATION IV. PROCLAMATIONS/PRESENTATIONS A. CUB SCOUT PACK 479 DONATION B. LIONESS CLUB DONATION FOR STARING LAKE OUTDOOR CENTER(Resolution) C. LIONS TAP DONATION FOR 2016 SPECIAL EVENTS (Resolution) V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY,JANUARY 19, 2016 B. CITY COUNCIL MEETING HELD TUESDAY,JANUARY 19, 2016 VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS VIII. CONSENT CALENDAR A. CLERK'S LICENSE LIST B. ADOPT RESOLUTION ACCEPTING THE FINDINGS OF FACT REGARDING AN ORDINANCE GRANTING A CABLE FRANCHISE FOR()WEST BROADBAND SERVICES,INC.,D/B/A CENTURYLINK CITY COUNCIL AGENDA February 2, 2016 Page 2 C. APPROVE SECOND READING OF AN ORDINANCE GRANTING CABLE TELEVISION FRANCHISE TO CENTURY LINK AND ADOPT RESOLUTION APPROVING PUBLICATION OF SUMMARY ORDINANCE D. ADOPT RESOLUTION AUTHORIZING CLEAN WATER FUND GRANT AGREEMENT WITH THE METROPOLITAN COUNCIL FOR WATER EFFICIENCY GRANT PROGRAM E. APPROVE DELEGATION AGREEMENT WITH MN DEPARTMENT OF NATURAL RESOURCES FOR AQUATIC INVASIVE SPECIES PREVENTION AND INSPECTION OF WATER-RELATED EQUIPMENT F. APPROVE CONTRACT WITH E.H. RENNER TO REHABILITATE WELL 10 G. APPROVE CONTRACT WITH KEYS WELL DRILLING TO REHABILITATE WELL 14 H. AWARD CONTRACT TO PREMIER ELECTRICAL CORPORATION FOR REPLACEMENT OF VARIABLE FREQUENCY DRIVE (VFD)AT WELL 12, CONTROL UPGRADE AT WELL 12, AND ELECTRICAL WORK ASSOCIATED WITH MAG METER INSTALLATIONS AT WELLS 10 AND 14 1. APPROVE RELEASE OF AGREEMENT REGARDING SPECIAL ASSESSMENTS NO. 99-01 FOR SETTLERS RIDGE 3RD ADDITION IX. PUBLIC HEARINGS/MEETINGS A. M.O.S.S STORAGE BUILDING by City of Eden Prairie. Request for Site Plan Review on 13.45 acres. Location: 9811 Flying Cloud Drive. (Resolution for Site Plan Review) X. PAYMENT OF CLAIMS XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS B. REPORT OF CITY MANAGER C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR CITY COUNCIL AGENDA February 2, 2016 Page 3 D. REPORT OF PARKS AND RECREATION DIRECTOR E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVI. ADJOURNMENT ANNOTATED AGENDA DATE: February 2, 2016 TO: Mayor and City Council FROM: Rick Getschow, City Manager RE: City Council Meeting for Tuesday, February 2, 2016 TUESDAY,FEBRUARY 2, 2016 7:00 PM, COUNCIL CHAMBER I. CALL THE MEETING TO ORDER II. COLOR GUARD/PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION Open Podium is an opportunity for Eden Prairie residents to address the City Council on issues related to Eden Prairie city government before each Council meeting, typically the first and third Tuesday of each month, from 6:30 to 6:55 p.m. in the Council Chamber. If you wish to speak at Open Podium, please contact the City Manager's office at 952.949.8412 by noon of the meeting date with your name,phone number and subject matter. If time permits after scheduled speakers are finished, the Mayor will open the floor to unscheduled speakers. Open Podium is not recorded or televised. If you have questions about Open Podium,please contact the City Manager's Office. IV. PROCLAMATIONS /PRESENTATIONS A. CUB SCOUT PACK 479 DONATION Synopsis: Representatives of the Cub Scout Pack will be on hand to presentation the donation. B. LIONESS CLUB DONATION FOR STARING LAKE OUTDOOR CENTER (Resolution) Synopsis: The Staring Lake Outdoor Center hosts classes and events for all ages, including several programs designed specifically for preschool age children. Currently the Outdoor Center is furnished with adult-sized tables and chairs. This donation will allow the Outdoor Center programs to better serve the needs of small children and provide a more comfortable learning environment for our youngest learners. MOTION: Move to adopt the Resolution accepting the donation in the amount of $500 from the Eden Prairie Lioness Club for the purchase of preschool chairs and table for the Staring Lake Outdoor Center. C. LIONS TAP DONATION FOR 2016 SPECIAL EVENTS (Resolution) Synopsis: Lions Tap gave $1,300 to be used to enhance the following programs: ■ $100 - Halloween on the Mall ANNOTATED AGENDA February 2, 2016 Page 2 • $100 - Animal Open House • $100 - Arts in the Park • $100 - A Collection of One Acts • $100 - Staring Lake Concert Series • $100 - Summer Musical • $100 - Art Crawl • $100 - 3rd and 4th of July • $100 -Fall Harvest • $100 - Kidstock • $100 - Rock On Ice • $100 - Spooky Saturday • $100 - Winter Theatre MOTION: Move to adopt the resolution accepting the donation in the amount of $1,300 from Lions Tap to be used towards 2016 Special Events. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS MOTION: Move to approve the agenda. VI. MINUTES MOTION: Move to approve the following City Council minutes: A. COUNCIL WORKSHOP HELD TUESDAY, JANUARY 19, 2016 B. CITY COUNCIL MEETING HELD TUESDAY, JANUARY 19, 2016 VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS VIII. CONSENT CALENDAR MOTION: Move approval of items A-I on the Consent Calendar. A. CLERK'S LICENSE LIST B. ADOPT RESOLUTION ACCEPTING THE FINDINGS OF FACT REGARDING AN ORDINANCE GRANTING A CABLE FRANCHISE FOR QWEST BROADBAND SERVICES, INC., D/B/A CENTURYLINK C. APPROVE SECOND READING OF AN ORDINANCE GRANTING CABLE TELEVISION FRANCHISE TO CENTURY LINK AND ADOPT RESOLUTION APPROVING PUBLICATION OF SUMMARY ORDINANCE ANNOTATED AGENDA February 2,2016 Page 3 D. ADOPT RESOLUTION AUTHORIZING CLEAN WATER FUND GRANT AGREEMENT WITH THE METROPOLITAN COUNCIL FOR WATER EFFICIENCY GRANT PROGRAM E. APPROVE DELEGATION AGREEMENT WITH MN DEPARTMENT OF NATURAL RESOURCES FOR AQUATIC INVASIVE SPECIES PREVENTION AND INSPECTION OF WATER-RELATED EQUIPMENT F. APPROVE CONTRACT WITH E.H. RENNER TO REHABILITATE WELL 10 G. APPROVE CONTRACT WITH KEYS WELL DRILLING TO REHABILITATE WELL 14 H. AWARD CONTRACT TO PREMIER ELECTRICAL CORPORATION FOR REPLACEMENT OF VARIABLE FREQUENCY DRIVE (VFD)AT WELL 12, CONTROL UPGRADE AT WELL 12,AND ELECTRICAL WORK ASSOCIATED WITH MAG METER INSTALLATIONS AT WELLS 10 AND 14 I. APPROVE RELEASE OF AGREEMENT REGARDING SPECIAL ASSESSMENTS NO. 99-01 FOR SETTLERS RIDGE 311:'ADDITION IX. PUBLIC HEARINGS/MEETINGS A. M.O.S.S STORAGE BUILDING by City of Eden Prairie. Request for Site Plan Review on 13.45 acres. Location: 9811 Flying Cloud Drive. (Resolution for Site Plan Review) Official notice of this public hearing was published in the January 21, 2016,Eden Prairie News and sent to 3 property owners. Synopsis: The proposal includes construction of a single story 1st phase 9,600 gross square feet cold storage (unheated) equipment building for storage of off season equipment. A 2nd phase will include a 1,408 square feet heated storage space. Total building area is 11,008 square feet. No office space or employees will be located at this site. The project as proposed meets or exceeds Performance Standards for the Industrial I-Gen Zoning District. The proposed landscape plan meets City Code requirements and will provide screening from the east and southwest. No tree loss is proposed with this project. The site has no outdoor storage or parking to screen. In 2005 the City granted site plan approval to allow the construction of an 11,700 square foot sand/salt storage building. The Master Plan, approved in 2005, included a future building for storage of off season equipment. The 120-Day Review Period Expires on March 15, 2016. The Planning Commission voted 6-0 to recommend approval of the project at the January 11, 2016 meeting. The Planning Commission reviewed a 12,884 square foot cold ANNOTATED AGENDA February 2, 2016 Page 4 storage (unheated) equipment storage building for storage of off season equipment. Between Planning Commission and City Council the project has been scaled to 11,008 square feet. The exterior plan remains the same as reviewed by the Planning Commission, only a smaller footprint. MOTION: Move to: • Close the Public Hearing; and • Adopt the Resolution for Site Plan Approval on 13.45 acres X. PAYMENT OF CLAIMS MOTION: Move approval of Payment of Claims as submitted (Roll Call Vote). XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS B. REPORT OF CITY MANAGER C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVII. ADJOURNMENT MOTION: Move to adjourn the City Council meeting. CITY COUNCIL AGENDA DATE: SECTION: Proclamations and Presentations February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: IV.B. Jay Lotthammer, Director, Donation from Eden Prairie Lioness Club for Parks and Recreation Preschool Chairs and Table for the Staring Lake Outdoor Center Requested Action Move to: Adopt the Resolution accepting the donation in the amount of$500 from the Eden Prairie Lioness Club for the purchase of preschool chairs and table for the Staring Lake Outdoor Center. Synopsis The Staring Lake Outdoor Center hosts classes and events for all ages, including several programs designed specifically for preschool age children. Currently the Outdoor Center is furnished with adult-sized tables and chairs. This donation will allow the Outdoor Center programs to better serve the needs of small children and provide a more comfortable learning environment for our youngest learners. Background The Staring Lake Outdoor Center offers a wide range of activities in the areas of environmental education and outdoor recreation for residents of all ages. Attachment Resolution CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2016- RESOLUTION RELATING TO ACCEPTANCE OF GIFTS BE IT RESOLVED BY THE EDEN PRAIRIE CITY COUNCIL THAT: The gift to the City in the amount of$500 to be used for the purchase of Preschool chairs and table at the Outdoor Center from Eden Prairie Lioness Club is hereby recognized and accepted by the Eden Prairie City Council. ADOPTED by the City Council of the City of Eden Prairie this 2nd day of February, 2016. Nancy Tyra-Lukens, Mayor ATTEST: Kathleen Porta, City Clerk CITY COUNCIL AGENDA DATE: SECTION: Proclamations and Presentations February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: IV.C. Jay Lotthammer, Director, Donation from Lions Tap Parks and Recreation Requested Action Move to: Adopt the resolution accepting the donation in the amount of$1,300 from Lions Tap to be used towards 2016 Special Events. Synopsis Lions Tap gave $1,300 to be used to enhance the following programs: $100 Halloween on the Mall $100 Animal Open House $100 Arts in the Park $100 A Collection of One Acts $100 Staring Lake Concert Series $100 Summer Musical $100 Art Crawl $100 3rd and 4th of July $100 Fall Harvest $100 Kidstock $100 Rock On Ice $100 Spooky Saturday $100 Winter Theatre Background These contributions make enhancements to programs, along with allowing several programs to be available to the community that would not otherwise be possible. Attachment Resolution CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2016- RESOLUTION RELATING TO ACCEPTANCE OF GIFTS BE IT RESOLVED BY THE EDEN PRAIRIE CITY COUNCIL THAT: The gift to the City in the amount of $1,300 to be used for various Parks and Recreation Special Events from Lions Tap is hereby recognized and accepted by the Eden Prairie City Council. ADOPTED by the City Council of the City of Eden Prairie this 2nd day of February, 2016. Nancy Tyra-Lukens, Mayor ATTEST: Kathleen Porta, City Clerk ITEM NO.: VI.A. UNAPPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY,JANUARY 19, 2015 CITY CENTER 5:00—6:25 PM, HERITAGE ROOMS 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Kathy Nelson, and Ron Case CITY STAFF: City Manager Rick Getschow, Police Chief Rob Reynolds, Fire Chief George Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Attorney Dan Gregerson, and Recorder Jan Curielli Workshop-Heritage Room II I. COMMISSION WORK PLANS A. CONSERVATION COMMISSION Conservation Commission Member Gina Gerard reviewed the commission's 2015 accomplishments and the work plan for 2016. In 2015 the commission provided input for the guidance manual and metrics and for Step 4 of the MPCA's GreenStep Cities program. They provided education on sustainable practices at several events and developed a new educational display graphic teaching about water use. The commission provided recommendations for the successor program to 20-40-15, and will continue to provide support for that program in 2016. In 2016 the commission will provide recommendations on key City initiatives such as the update to the Comprehensive Guide Plan. They will promote expanded use of the Environmental Learning Center at the water treatment facility and will provide additional input on pollinator protection. They will continue to provide education and outreach at events such as the Chamber Expo, Arbor Day and the City-wide Open House. They will be developing additional educational materials and are planning a joint meeting with the Parks and Recreation Commission. Aho noted the average homeowner doesn't know how much water they are using and asked if there is any way to see what their water usage is with an app or on a web link. Ellis replied they have recently looked at utility rates and possibly providing something like Xcel Energy does now in terms of use; however, the technology that exists today would require about $3,000,000 of investment. Gerard noted the Conservation Commission plans to continue raising awareness of water use and conservation methods. Nelson noted energy was not included in the commission's 2016 work plan. She would like to see some educational material available to residents about what they are allowed to do in terms of green energy technology. Tyra-Lukens suggested that would be a factor in the 20-40-15 successor program. Getschow noted the Council City Council Workshop Minutes January 19, 2016 Page 2 will have a workshop next month to discuss the successor program. He said the 20- 40-15 program focused on conserving energy in City facilities while the new program will provide ideas for community-wide conservation. B. FLYING CLOUD AIRPORT ADVISORY COMMISSION Flying Cloud Airport Advisory Commission Chair Keith Tschohl reviewed the commission's 2015 activities and 2016 work plan. Tschohl said the commission's goals for 2016 will include: monitoring developments in laws and regulations regarding small Unmanned Aircraft Systems (UAS), or drones; visiting Flying Cloud Airport to learn more about airport staff and operator concerns and ideas, especially about reducing noise from airport operations; providing the Council with annual comparisons of the number of operations and noise complaints; providing feedback to the MAC Noise Program Office on revisions to the monthly noise complaint survey as they prepare to use that summary as a prototype for all MAC reliever airports; and monitoring development of the MAC's 2035 Long Term Comprehensive Plan (LTCP) for Flying Cloud Airport. He said the commission heard from representatives of MnDOT at the October meeting on the status of regulations regarding use of UAS. The commission will be monitoring changes in those regulations and the implication of regulations and UAS usage for Eden Prairie. During 2015 the commission reviewed the implementation of the Letter of Agreement(LoA)between the FAA and MAC to monitor the effectiveness of the LoA in reducing noise caused by helicopter training operations. He noted noise complaints from those operations were significantly reduced during the year. The commission also gave advice on operational changes at the airport, including a national ban on Stage 2 jet aircraft, continued hangar construction in the south hangar area, and reconstruction of Taxiway A. Case noted he had called in a noise complaint twice about repetitive helicopter operations near his home and asked about the percentage of complaints related to helicopter activity. Tschohl said he would have to get further statistics on helicopter operations. He noted the airport is fairly limited in their ability to move traffic around, and helicopter operations will probably remain on the north side of the airport. Aho asked to what the reduction in complaints might be attributed. Tschohl said there are many factors involved, but it could be due to a change in demographics, the weather or the time of day. Nelson said she noticed an increase in noise between 6:00 and 7:00 AM at least once or twice during the month. She noted that many children received a quadcopter or drone as a Christmas gift and will expect to fly them in their backyard. She asked what the regulations are about those devices. Tschohl said the FAA calls all such devices Unmanned Aircraft Systems and considers them to be aircraft whose regulation is under their jurisdiction. A hobbyist using a UAS within five miles of Flying Cloud airport is required to give the airport and the tower a call to let them know of the activity. Nelson then asked about regulation of kites. Tschohl said there is a separate regulation that addresses kites. He noted one of the problems with drones is that it is an evolving matter. The FAA has stated that any UAS over 250 grams City Council Workshop Minutes January 19, 2016 Page 3 must be registered. The use of UAS for commercial purposes requires a waiver, but that regulation is widely ignored by the industry. Nelson suggested we need to provide education to people about the regulation of UAS because those are becoming such a popular item. Tyra-Lukens asked if the airport receives calls from people about UAS. Mike Wilson, Airport Manager, said they must notify the airport and the control tower, and there have been a couple of those calls. Esbensen said we need to have a separate dialogue on the subject of UAS because this is a big issue. There are some meetings scheduled in a couple of weeks, and staff will be working on it during the year. C. HERITAGE PRESERVATION COMMISSION Heritage Preservation Commission Chair Steve Olson reviewed the commission's 2015 activities and 2016 work plan. He said 2015 was a record-breaking year for grant receipts due to great work by Lori Creamer, Staff Liaison, to pursue those grants. The Commission did inventory work on the historic resources in Eden Prairie and plan to continue that work in 2016. The kiosk at Riley Lake Park was completed, and the Commission worked with the Parks Commission to plan for additional panels and signs at that location. They collaborated with the Parks Commission and MAC regarding the overlook at the airport and a proposed historic district for some of the airport hangars. The Dorenkemper property was declared a local historic site in 2015. They plan to do research on the Town of Hennepin and Murphy's Landing ferry, continue their work on the airport lookout site, and work on getting the Smith Douglas More and the Dorenkemper properties on the National Register. Tyra-Lukens noted they have many good ideas to use the grant money they obtain. D. HUMAN RIGHTS & DIVERSITY COMMISSION Human Rights & Diversity Commission Chair P.G. Narayanan reviewed the commission's 2015 activities and 2016 work plan. During 2015 the commission presented the Tracks in the Snow art exhibit about our Muslim neighbors, worked with the Fire Department to initiate a Cultural Services Unit(CSU) for the CERT program, sponsored a film on youth homelessness, worked on providing a formal human rights grievance procedure on the website, and other initiatives. The work plan for 2016 includes such items as elevating the visibility of the commission, increasing the Commission's listening avenues, community collaborative events including PeopleFest, and developing an advisory document to highlight the City's focus and challenges in areas of human rights. The commission will be accepting nominations for the annual Human Rights Awards soon. Tyra-Lukens asked if the human rights grievance process is something new and if we track the grievances. Patricia Fenrick, Staff Advisor, said it is not a new program and the commission will put together a procedure so the information can be tracked. Narayanan noted there have not been a large number of grievances. City Council Workshop Minutes January 19, 2016 Page 4 E. PARKS,RECREATION & NATURAL RESOURCES COMMISSION Parks, Recreation&Natural Resources Commission Chair Larry Link reviewed the commission's 2015 activities and 2016 work plan. He said Phase 1 of the Aquatics and Fitness Center expansion project was completed during 2015. That facility has become very busy with the two new pools and the expanded fitness center. They are reviewing the Outdoor Center master plan to update that facility and to get more visibility for the facility. A new program, Fitness in the Parks, was started in 2015 and was quite successful. In 2016 their plans include such things as monitoring development of the Cedar Hills Park neighborhood park, reviewing plans for the station design and public art for the Southwest Light Rail Transit station areas, planning for the grand opening of Phase 2 of the Aquatics Center update, and helping to launch the community Green Team. F. PLANNING COMMISSION Planning Commission Member Andrew Pieper reviewed the commission's 2015 activities and 2016 work plan. He said in 2015 the commission reviewed the plans for the Shops at Southwest Station and the Eden Prairie Retail project, reviewed an annexation request, reviewed ten land use development applications, provided input on design standards for PUD and site plans, and reviewed and provided input to the draft Transit Oriented Development ordinance and site improvements at Southwest Station. He said they plan to build on the knowledge base for the commission during 2016 and to focus on code amendment, design standards and the Comprehensive Guide Plan update. Tyra-Lukens asked about plans to review the tree ordinance. Getschow replied that is currently at the staff level. There is a workshop scheduled in the spring to take a look at code for tree preservation and replacement. Nelson commented she hoped staff is not recommending only native grasses for landscaping plans because that would change the look of the City from the current look with flowers and a variety of plantings. Open Podium - Council Chamber II. ADJOURNMENT ITEM NO.: VI.B. UNAPPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY,JANUARY 19, 2016 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Ron Case, and Kathy Nelson CITY STAFF: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, City Attorney Dan Gregerson, and Council Recorder Jan Curielli I. CALL THE MEETING TO ORDER Mayor Tyra-Lukens called the meeting to order at 7:00 PM. Council Member Butcher Wickstrom was absent. II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION IV. PROCLAMATIONS/PRESENTATIONS A. DR. MARTIN LUTHER KING,JR., PROCLAMATION Mayor Tyra-Lukens read a proclamation proclaiming 2016 as a year to celebrate human rights and diversity and to recognize and celebrate Dr. Martin Luther King Jr.'s dream. P.G. Narayanan, Chair of the Human Rights and Diversity Commission, announced the start of the Human Rights award process for 2016. He reviewed the purpose of the award and explained the process the commission will go through to select the winners of the awards in the four categories. The awards will be presented at the April City Council meeting. B. EDEN PRAIRIE SMILES DONATION (RESOLUTION NO. 2016-16) Lotthammer thanked Eden Prairie Smiles and Dr. Mesa for the donation of$5,000 to help fund some of the City's celebrations. He noted Eden Prairie Smiles has made this donation for several years. Tyra-Lukens thanked Dr. Mesa for his donations to our City's celebrations. CITY COUNCIL MINUTES January 19, 2016 Page 2 MOTION: Aho moved, seconded by Case, to adopt Resolution no. 2016-16 accepting the donation from Eden Prairie Smiles for$5,000 for Parks and Recreation special events. Motion carried 4-0. C. LIONESS CLUB DONATION (RESOLUTION NO. 2016-17) Lotthammer said the Lioness Club has donated$600 for the purchase of new sound equipment at the Eden Prairie Senior Center. MOTION: Nelson moved, seconded by Aho, to adopt Resolution No. 2016-17 accepting the donation in the amount of$600 from the Eden Prairie Lioness Club for the purchase of new sound equipment at the Eden Prairie Senior Center. Motion carried 4-0. D. STATE FARM DONATION FROM GORDON WILLIAMS (RESOLUTION NO. 2016-18) Lotthammer said State Farm has again provided a donation of$500 in recognition of Gordon Williams' volunteer service at the Eden Prairie Senior Center. The donation will be used for the volunteer recognition lunch. MOTION: Case moved, seconded by Nelson, to adopt Resolution No. 2016-18 accepting the donation in the amount of$500 from State Farm Companies Foundation on behalf of Gordon Williams for his volunteer service at the Eden Prairie Senior Center to be used toward the 2016 Senior Center volunteer recognition event. Motion carried 4-0. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS MOTION: Aho moved, seconded by Nelson, to approve the agenda as published. Motion carried 4-0. VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY,JANUARY 5, 2016 MOTION: Case moved, seconded by Aho, to approve the minutes of the Council workshop held Tuesday, January 5, 2016, as published. Motion carried 3-0-1,with Nelson abstaining. B. CITY COUNCIL MEETING HELD TUESDAY,JANUARY 5, 2016 MOTION: Case moved, seconded by Nelson, to approve the minutes of the City Council meeting held Tuesday, January 5, 2016, as published. Motion carried 5-0. VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS CITY COUNCIL MINUTES January 19, 2016 Page 3 VIII. CONSENT CALENDAR A. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH WELSH ARCHITECTURE FOR THE PRELIMINARY POLICE SPACE STUDY B. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH KLM ENGINEERING, INC., FOR PROJECT ADMINISTRATION FOR RECOATING OF TOWN CENTER WATER TOWER C. APPROVE FIRST AMENDMENT TO COOPERATIVE AGREEMENT WITH THE CITY OF EDINA RELATING TO WATER, SANITARY AND STORM SEWER, STREET AND TRAFFIC SIGNALS D. ADOPT RESOLUTION NO. 2016-19 AMENDING RESOLUTION NO. 2016-09 SETTING 2016 MEETING DATES FOR BOARDS AND COMMISSIONS E. APPROVING 511 RESTATED JOINT POWERS AGREEMENT OF SOUTHWEST TRANSIT COMMISSION F. APPOINT REPRESENTATIVE AND ALTERNATE TO LOGIS BOARD OF DIRECTORS G. APPROVE SPRINT LICENSE AGREEMENT EXTENSION LETTER MOTION: Nelson moved, seconded by Aho, to approve Items A-G on the Consent Calendar. Motion carried 4-0. IX. PUBLIC HEARINGS/MEETINGS A. KAL POINT by Kal Stay, LLC.Request for Guide Plan change from Neighborhood Commercial to Community Commercial on 2.98 acres; Planned Unit Development concept review on 2.98 acres; Planned Unit Development District review with waivers on 2.98 acres; Zoning District change from Neighborhood Commercial to Community Commercial on 2.98 acres; Site Plan review on 2.98 acres and Preliminary Plat of three lots into two lots on 2.98 acres. Location: 13105, 13075 & 13045 Pioneer Trail. (Resolution No. 2016-20 for Guide Plan Change; Resolution No. 2016-21 for PUD Concept review; Ordinance for PUD District Review with waivers and Zoning District Change; Resolution No. 2016-22 for Preliminary Plat) Getschow said the proposed project is for the construction of a 20,000 square foot grocery building with a drive through, and a multi-tenant retail building of approximately 4,200 square feet. The proposal includes the removal of the existing structures and redeveloping the existing 3 parcels into 2 parcels with shared parking facilities. The proponent is seeking rezoning from Neighborhood Commercial to Community Commercial, as well as PUD waivers to the parking setback along the common property line and for Floor Area Ratio (FAR) and Base CITY COUNCIL MINUTES January 19, 2016 Page 4 Area Ratio (BAR) for Lot 2. He said the Planning Commission unanimously recommended approval of the project. Kalyan Vempaty, proponent, gave an overview of the two-phase project. The first phase will be a neighborhood grocery store with a drive through. The second phase will be a 4200 square foot multi-retail building to be developed sometime after Phase 1 is complete. Tyra-Lukens asked if the project has a name. Mr. Vempaty said for now it will be called Kal Point. Tyra-Lukens noted she did not see signage addressed in the information provided. Jeremiah said we do not require signage to be approved with the PUD,but will come back for approval of signage at a later date. Tyra-Lukens noted the project will be done in two phases and will be re-platted to two lots. She asked what would happen if we approve a setback waiver for parking and the second lot is subsequently sold to someone else. Jeremiah said the waiver for the setback would remain in place so the new user would have to understand the parking would be that close to the building. Tyra-Lukens asked if they had a model for the drive-through for meats. Mr. Vempaty said they expect two types of customers for their meat selection: one type being retailers who order online and pick up at the drive through and another type who use an app to order and then drive up for the meat. Case noted the drive-through traffic seems to compete with the truck delivery traffic because it is the same road going around the building. Mr. Vempaty said there is a gap between the two, and most delivery times will occur in the early morning. Case asked staff to address the fact that this building has a 35-foot setback from the east side of the property. Jeremiah replied the property on the east is an older building and is more of an industrial warehouse facility so it may not be adhering to the setback requirements. She noted that building has been there for a while, so it probably does not conform to many of our current standards. Case commented there is 50-60 feet separating the two buildings, and we typically do not have buildings with this kind of corridor feeling. Jeremiah said there would be visibility of the area from Pioneer Trail so it is not really that hidden. Case asked if we typically are not concerned about the backs of buildings and if this is consistent with the back side of many of our larger box buildings. Jeremiah said it is typical that there would be much less articulation on the back side of a building. Aho noted the back will face the other buildings. Nelson said this is another case where we have two street fronts, and we still have not developed a policy to deal with that situation. She thought this needs to be addressed in the next couple of years. There were no comments from the audience. CITY COUNCIL MINUTES January 19, 2016 Page 5 MOTION: Case moved, seconded by Nelson, to close the public hearing. Motion carried 4-0. Tyra-Lukens commented this particular parcel has a number of residences across from it on the north side, including single family homes and a senior residence. She asked staff to address the lighting proposed for the project. Jeremiah said staff will check to be sure there is no lighting spill over; however, our ordinances control lighting and require the source of lighting to be covered. Case noted the City has been consistent on color variations, and we have some flexibility to ensure that this is as beautiful as it can be. He wanted to make sure staff has looked at this to dress it up and make it sharper. He thought this corner location needs help and this would be a start. Jeremiah said there have been quite a few discussions with the proponent and the architect. Staff and the Planning Commission felt the level of articulation is above the code requirements and is consistent with Council discussions on architectural standards. The proponent has been working with staff to improve the plans, and that has added to the cost. She said staff is comfortable that they have done what we think is reasonable and believes this will be a big improvement for that corner. Nelson asked if there is a landscaping plan. Jeremiah said there is. Case noted the last page of the black and white landscaping diagram shows even more variation than the color diagram does. He said there appear to be changes in the brick color on the black and white diagram that provide change across the facade and asked staff to look at this again for something that would enhance the look. Jeremiah said there are two different shades of brown on the face brick with horizontal banding. MOTION: Case moved, seconded by Aho, to adopt Resolution No. 2016-20 for Guide Plan change from Neighborhood Commercial to Community Commercial on 2.98 acres; to adopt Resolution No. 2016-21 for Planned Unit Development concept review on 2.98 acres; to approve 1st reading of the ordinance for Planned Unit Development District review with waivers, and Zoning District change from Neighborhood Commercial to Community Commercial 2.98 acres; to adopt Resolution No. 2016-22 for Preliminary Plat for 3 lots into 2 lots on 2.98 acres; and to direct staff to prepare a development agreement incorporating staff and commission recommendations and Council conditions as expressed this evening. Motion carried 4-0. B. COMPETITIVE FRANCHISE AGREEMENT WITH QWEST BROADBAND SERVICES,INC.D/B/A CENTURY LINK (FIRST READING OF ORDINANCE) Getschow said the purpose of this public hearing is to consider a cable franchise agreement with Century Link. The Southwest Suburban Cable Commission voted to recommend all of the member cities approve a franchise with Century Link. CITY COUNCIL MINUTES January 19, 2016 Page 6 Brian Grogan, Administrator and Legal Counsel of Southwest Suburban Cable Commission, said the Federal Cable Act was designed to promote competition to cable companies. He noted Eden Prairie renewed the Comcast Cable franchise in 2012, and Century Link used that agreement in order to be as nearly identical to that as possible in their negotiations. He reviewed the sequence of events in the negotiations. He noted Century Link uses the term, "living units,"versus Comcast's term, "households."The proposed franchise agreement would have a five-year term with a unilateral right for the City to extend the agreement for five years. The five- year term is tied in large part to the system build out and allows the City to determine if the franchise is substantially constructed. Mr. Grogan reviewed the terms of the build out, which include providing service to at least 15% of the City's living units in the first two years. He noted they are already substantially in excess of that, and the progress of the build out will be verified at quarterly meetings with updated maps to show where the service can be provided. They will continue the build out in 15% increments based on market success until the entire City is served. He demonstrated the mosaic channel that will be provided and noted Eden Prairie will be located on Channel 26. Each city in the Southwest Suburban Cable Commission will have its own Public and Educational channel and Government (PEG) channel. There will be a direct fiber connection to Edina and to the Eden Prairie City Hall. The PEG fees will be the same as those of Comcast. They will provide extra indemnification in the event the City is challenged for awarding the franchise. Aho asked if the Century Link franchise offers any other benefits to the City beyond those Mr. Grogan outlined in his presentation. Mr. Grogan said Century Link currently has wires in the City streets so there will be less disruption, and it will offer a competitive choice for broadband service so the effect should be to improve service and bring down costs. Tyra-Lukens asked if this provides internet service. Mr. Grogan said this contract is just for cable TV; however, other service offers are available. Aho asked if the service provided is called"cable" or"channelized video." Mr. Grogan noted they use the term"cable TV,"but the statutes don't always keep up with technology. Tyra-Lukens asked when construction would begin if this is approved. Mr. Grogan said they are using existing facilities, and there are a substantial number of Eden Prairie residents who could call and request the service on the day the franchise becomes effective. There will be further construction to make the service available to more Eden Prairie residents as fiber is extended into other neighborhoods. Aho asked if this will be delivered over DSL. Mr. Grogan said those with 25 meg download or better can select Century Link service. Aho asked if it requires that fiber be delivered to the household. Mr. Grogan said that varies by jurisdiction but that is not required. CITY COUNCIL MINUTES January 19, 2016 Page 7 Tyra-Lukens said she was excited about introducing competition in the market. She was concerned about the issue of constant digging up of our right of ways and then not having the conditions restored or maintained afterwards. She hoped there would be some way to keep on that situation in some orderly way. Mr. Grogan noted Mr. Getschow raised that issue in the negotiations. He said they try to have the cable franchise not serve as an exception to the rules the City puts in place for right of ways. Patrick Haggerty, representing Century Link, noted Century Link is very excited to have this franchise effective, and he extended gratitude to the Southwest Suburban Cable Commission for their time. Aho said we are looking forward to having another provider in the City and to having more service for our residents. (taken out of sequence) MOTION: Aho moved, seconded by Nelson, to approve first reading of an ordinance granting a cable television franchise to Century Link. Motion carried 4-0. MOTION: Case moved, seconded by Aho, to close the public hearing. Motion carried 4-0. C. VACATION OF PART OF THE SLOPE EASEMENT (FLYING CLOUD DRIVE -METCOM) (RESOLUTION NO. 2016-23) Getschow said the owners of the Park Nicollet Clinic requested the vacation of a part of the slope easement over a portion of the Clinic lot to accommodate an addition to their existing building. He said the easement has been in place since 1976 and the City does not need it any more. Tyra-Lukens recalled a few years ago seniors were talking about the difficulty of going down the trail from Summit Place to the Park Nicollet facility. We had hoped Park Nicollet would address that situation but it has not yet been addressed. She asked if that has been discussed in any way during this process. Ellis said staff has worked with the Parks Department on the issue of having some facility built on the south side to allow access to the building. The City is also working on a trail connection between Medcom Blvd and Franlo Road. There were no comments from the audience. MOTION: Aho moved, seconded by Case, to close the public hearing. Motion carried 4-0. MOTION: Nelson moved, seconded by Case, to adopt Resolution No. 2016-23 vacating a part of the slope easement, as dedicated on Torrens Document 1208598 dated December 6, 1976 and recorded on February 8, 1977 with the Hennepin County Registrar of Titles, lying over a part of Tract A, Registered Land Survey No. 1394, Hennepin County, Minnesota. Motion carried 4-0. CITY COUNCIL MINUTES January 19, 2016 Page 8 X. PAYMENT OF CLAIMS MOTION: Case moved, seconded by Aho, to approve the payment of claims as submitted. Motion was approved on a roll call vote,with Aho, Case, Nelson and Tyra-Lukens voting "aye." XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS AND COMMUNICATIONS XIII. APPOINTMENTS A. BOARD OF APPEAL & EQUALIZATION Getschow noted most of the appointments for the year were handled at the first Council meeting in January; however, we now need to appoint members to the Board of Appeal &Equalization. He said since 1992 Eden Prairie has appointed citizen volunteers in the City who have experience in the real estate market to this board, and all of the proposed members have extensive knowledge of the southwest metro area. MOTION: Case moved, seconded by Nelson, to appoint to the Board of Appeal and Equalization: Lyndon Moquist, Annette O'Connor, Todd L. Walker,Nate Thompson and Kristin Rial for the period of March 1, 2016 through May 31, 2016, or until the Board of Appeal and Equalization completes its work. Motion carried 4-0. Case noted the absence of Patricia Pidcock from this year's appointees and gave a call out to her for her many years of service to the City. XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS B. REPORT OF CITY MANAGER C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY CITY COUNCIL MINUTES January 19, 2016 Page 9 XV. OTHER BUSINESS XVI. ADJOURNMENT MOTION: Nelson moved, seconded by Case, to adjourn the meeting. Motion carried 4-0. Mayor Tyra-Lukens adjourned the meeting at 8:00 PM. CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.A. Christy Weigel, Clerk's License Application List Police/ Support Unit These licenses have been approved by the department heads responsible for the licensed activity. Requested Action Motion: Approve the licenses listed below 2016 Renewal Licenses Private Kennel John McDaniels Kathy Meyer Frank& Lyndy Newcomb Nancy Parker - 1 - CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.B. Adopt Resolution Accepting Findings of Fact City Manager, Rick Getschow Regarding an Ordinance Granting Cable Franchise For Qwest Broadband Services, Inc., D/B/A Centurylink Requested Action: Move to: Adopt Resolution accepting The Findings of Fact regarding an Ordinance granting a cable franchise for Qwest Broadband Services, Inc., D/B/A Centurylink. Synopsis: The City Council approved the first reading of an Ordinance granting a Cable TV Franchise to Century Link at its January 19th meeting. Eden Prairie is a member of the Southwest Cable Commission, along with Edina, Richfield, Minnetonka, and Hopkins. The Commission exists to advise its member cities on cable television matters. The Commission considered the CenturyLink request earlier this year. They voted unanimously at their October 22 Board meeting to recommend its member cities approve the CenturyLink franchise request. Attachment: Resolution CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2016- REGARDING AN ORDINANCE GRANTING A COMPETITIVE CABLE FRANCHISE FOR QWEST BROADBAND SERVICES, INC., D/B/A CENTURYLINK WHEREAS, the City of Eden Prairie, Minnesota makes the following FINDINGS OF FACT: 1. In October 2014, Qwest Broadband Services, Inc., d/b/a CenturyLink, Inc. ("CenturyLink") requested that the City of Eden Prairie, Minnesota ("City") initiate proceedings to consider awarding it a franchise to provide cable communications services in the City("Service Territory"). 2. Comcast of Arkansas/Florida/Louisiana/Minnesota/Mississippi/Tennessee, Inc. ("Comcast") holds a non-exclusive cable communications franchise for the Service Territory("Comcast Franchise"). 3. The Comcast Franchise, which the City last renewed in August 2012, is currently the only cable communications franchise for the Service Territory. 4. The monopoly held by a sole cable communication provider in a particular market is a barrier to entry for additional providers, which does not have a captive market but must instead"win" every subscriber.1 5. The presence of a second cable operator in a market improves the quality of service offerings and drives down prices by approximately 15%.2 6. On April 9 and April 16, 2015, the City published a Notice of Intent to Franchise a Cable Communications System ("Notice") in the Eden Prairie News, a newspaper of general circulation in the Service Territory. 7. The Notice indicated that the City was soliciting franchise applications and provided information regarding the application process, including that applications were required to be submitted on or before April 30, 2015 and that a public hearing to hear proposals from applicants would be held May 5, 2015 at 7:00 PM. 8. The City also mailed copies of the Notice and application materials to CenturyLink and Comcast.3 1 In the Matter of Section 621(a)(1) of the Cable Communications Policy Act of 1984 as amended by the Cable Television Consumer Protection and Competition Act of 1992, Report and Order and Further Notice of Proposed Rulemaking,MB Docket No. 05-311,at¶ 138 (Rel.Mar. 5,2007)("621 Order"). 2 Id. at 11112,50. 1 9. On April 30, 2015, the City received an application from CenturyLink (the "CenturyLink Application"). The City did not receive any other applications. 10. As provided by the Notice, on May 5, 2015 the City held a public hearing during the City Council's regularly scheduled meeting to consider CenturyLink's application and qualifications. 11. On May 4, 2015, Comcast submitted a letter to the City setting forth its position regarding the CenturyLink Application("Comcast Letter").4 12. The Comcast Letter expresses concern about how CenturyLink's proposal compared to particular provisions of the existing Comcast Franchise.5 13. The Comcast Letter also summarizes Comcast's position regarding build-out requirements and other proposed terms related to competition in the cable industry.6 14. During the hearing, CenturyLink presented its proposal and all other interested parties were provided an opportunity to speak and present information to the City Council regarding the CenturyLink Application. 15. Following the hearing, the law firm of Moss & Barnett, a Professional Association prepared a report, dated June 1, 2015 ("Franchise Report"), reviewing and analyzing the City's franchising procedures, the CenturyLink Application and other information provided by CenturyLink in connection with the May 5, 2015 public hearing. 16. The Franchise Report identifies and discusses federal and state legal requirements relevant to the City's consideration of the CenturyLink Application, including laws pertaining to franchising procedures and competition between providers.8 17. The Franchise Report also analyzes information provided by CenturyLink to establish its qualifications to operate a cable communications franchise in the Service Territory.9 18. At its meeting on October 28, 2015, the Southwest Suburban Cable Commission ("Commission") considered the Franchise Report along with the information and documentation it had received regarding the CenturyLink Application, and adopted Resolution 2015-1 finding and concluding that the CenturyLink Application complied with the requirements of Minn. Stat. § 238.081 and that CenturyLink is legally, 3 Notice by the City of Eden Prairie,Minnesota of Its Intent to Consider An Application for a Franchise and Request for Proposals-Official Application Form 4See May 4, 2015 letter from Emmett Coleman to Brian Grogan, Franchise Administrator of the Southwest Suburban Cable Commission regarding CenturyLink Video Franchise Application. 5 Id. at 2. 6 Id. at 1-2. Report to the Southwest Suburban Cable Commission Regarding Qwest Broadband Services, Inc. d/b/a/ CenturyLink—Proposal for a Cable Communication Franchise,June 1,2015. 8 Franchise Report at 2-9. 9 Id. at 11-12. 2 technically, and financially qualified to operate a cable communications system within the Service Territory. 19. In Minnesota, both State and federal law govern the terms and conditions of an additional cable communications franchise in an already-franchised service area.10 20. The franchising authority may not grant an exclusive franchise or unreasonably refuse to award an additional competitive franchise.11 21. The franchising authority must allow an applicant reasonable time to become capable of providing cable service to all households in the service area.12 22. The franchising authority may grant an additional franchise in an already-franchised service area if the terms and conditions of the additional franchise are not "more favorable or less burdensome than those in the existing franchise" regarding the area served, the PEG access requirements, and franchise fees." 23. The additional franchise must also include, among other things, "a schedule showing . . . that the construction throughout the authorized franchise area must be substantially completed within five years of the granting of the franchise.""4 24. In order to ensure that any additional franchise granted to CenturyLink would contain substantially similar service area, PEG access requirements, and franchise fees to the Comcast Franchise, the City used the Comcast Franchise as the base document for its negotiations. 25. On January 19, 2016, the City Council gave notice that it intended to introduce an ordinance granting a cable communications franchise to CenturyLink. 26. On January 19, 2016, the City Council introduced Ordinance No. 3-2016, an Ordinance of the City of Eden Prairie Granting a Cable Communications Franchise to Qwest Broadband Services, Inc. d/b/a CenturyLink("CenturyLink Franchise"). 27. Copies of the CenturyLink Franchise were made available to the public, including Comcast, on January 19, 2016. 28. The CenturyLink Franchise encompasses the same Service Territory encompassed by the Comcast Franchise.15 10 See 47 U.S.C. § 541(a)(1);Minn. Stat. §§238.08, .084;see also Franchise Report at 2-8. 11 47 U.S.C. § 541(a)(1). 12 47 U.S.C. § 541(a)(4). 13 Minn. Stat. §238.08,subd. 1(b). 14 Minn. Stat. §238.84,subd. 1(m). 15 CenturyLink Franchise § 2.4;Comcast Franchise § 2.4. 3 29. The franchise fees required by the CenturyLink Franchise are identical to those required by the Comcast Franchise. 16 30. The PEG access requirements in the CenturyLink Franchise mandate certain obligations, such as HD channel capacity for all PEG channels that go beyond the commitments made in the Comcast franchise.17 31. The City recognizes that CenturyLink, which currently offers no cable communications services in the Service Territory, cannot justify a large initial deployment because it "realistically cannot count on acquiring a share of the market similar to Comcast's share . . . [and] must begin offering service within a smaller area to determine whether it can reasonably ensure a return on its investment before expanding."18 32. The CenturyLink Franchise therefore requires CenturyLink's initial deployment to be capable of serving at least 15% of the living units in the Service Territory within two years. 33. The CenturyLink Franchise permits the City to monitor CenturyLink's progress and compliance with build-out requirements via quarterly meeting and accelerates the build- out schedule if CenturyLink has market success, with the goal and expectation that build- out will be substantially complete before the CenturyLink Franchise's five-year term expires.19 34. During its regularly scheduled meeting on January 19, 2016, the City Council will hold a public hearing at which all interested parties are provided an opportunity to speak and present information regarding the proposed CenturyLink Franchise. WHEREAS, the City has considered these facts and the cable-related needs and interests of the community: NOW THEREFORE, the City Council for the City of Eden Prairie, Minnesota hereby resolves as follows: 1. The foregoing findings are adopted as the official findings of the City Council and made a part of the official record. 2. The City has authority to adopt an ordinance granting a cable communications franchise to CenturyLink for the Service Territory. 3. The City may not unreasonably refuse to award a competitive cable communications franchise to CenturyLink. 16 CenturyLink Franchise§ 16.1;Comcast Franchise§ 16.1. 17 CenturyLink Franchise§ 7;Comcast Franchise § 7. 18 621 Order at¶35. 19 CenturyLink Franchise §2.6. 4 4. The City and its residents will benefit from adoption of the CenturyLink Franchise, which will introduce facilities-based competition into the cable communications market in the Service Territory and thereby reduce costs to consumers and increase the quality and availability of services. 5. CenturyLink is legally, technically, and financially qualified to operate a cable communications system in the Service Territory and has complied with all application requirements. 6. The City has complied with all franchise application requirements imposed by State and federal law, including those identified herein or in the Franchise Report. 7. The terms and conditions of the CenturyLink Franchise pertaining to service area, a PEG access requirement, and franchise fees are not more favorable or less burdensome than the corollary terms of the Comcast Franchise. 8. The CenturyLink Franchise's initial deployment requirement of 15% within two years and 5-year timeline for substantially completing build-out provides a reasonable period of time for CenturyLink to become capable of reaching full deployment and is therefore consistent with both State and federal law. 9. The Ordinance Granting a Cable Communications Franchise for Qwest Broadband Services, Inc., d/b/a CenturyLink is formally and finally adopted. 10. The City finds and concludes that its actions are appropriate, reasonable, and consistent in all respects with the mandates set forth in Chapter 238 of Minnesota Statutes and applicable provisions of federal law, including 47 U.S.C. § 541(a). ADOPTED by the Eden Prairie City Council on February 2, 2016. Nancy Tyra-Lukens, Mayor ATTEST: Kathleen Porta, City Clerk 5 CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.C. City Manager, Rick Getschow Second Reading of an Ordinance Granting A Cable TV Franchise to CenturyLink Requested Action: Move to: Approve second reading of an ordinance granting a cable television franchise to Century Link and adopt resolution approving publication of summary ordinance. Synopsis: The City Council approved the first reading of the Ordinance granting a Cable TV Franchise to Century Link at its January 19th meeting. Brian Grogan, legal counsel and administrator of the SW Cable Commission,presented the franchise request and advised the Council on the matter during the Public Hearing. Attachments: • Franchise Ordinance • Summary Resolution • Summary Ordinance City of Eden Prairie, Minnesota Ordinance No. 3-2016 Granting a Cable Television Franchise to Qwest Broadband Services, Inc. d/b/a CenturyLink January 19, 2016 Prepared by: BRIAN T. GROGAN, ESQ. Moss & Barnett A Professional Association 150 South Fifth Street, Suite 1200 Minneapolis, MN 55402 (612) 877-5340 3056782v1 TABLE OF CONTENTS SECTION 1 DEFINITIONS 1 SECTION 2 FRANCHISE 5 SECTION 3 OPERATION IN STREETS AND RIGHTS-OF-WAY 12 SECTION 4 REMOVAL OR ABANDONMENT OF SYSTEM 15 SECTION 5 SYSTEM DESIGN AND CAPACITY 17 SECTION 6 PROGRAMMING AND SERVICES 20 SECTION 7 PUBLIC, EDUCATIONAL AND GOVERNMENTAL ACCESS 21 SECTION 8 REGULATORY PROVISIONS 29 SECTION 9 BOND 30 SECTION 10 SECURITY FUND 30 SECTION 11 DEFAULT 33 SECTION 12 FORECLOSURE AND RECEIVERSHIP 35 SECTION 13 REPORTING REQUIREMENTS 36 SECTION 14 CUSTOMER SERVICE POLICIES 37 SECTION 15 SUBSCRIBER PRACTICES 43 SECTION 16 COMPENSATION AND FINANCIAL PROVISIONS 44 SECTION 17 MISCELLANEOUS PROVISIONS 47 EXHIBIT A FREE CABLE SERVICE TO PUBLIC BUILDINGS A-1 EXHIBIT B FRANCHISE FEE PAYMENT WORKSHEET B-1 EXHIBIT C INDEMNITY AGREEMENT C-1 3056782v1 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 3-2016 AN ORDINANCE GRANTING A FRANCHISE TO QWEST BROADBAND SERVICES, INC.,D/B/A CENTURYLINK TO OPERATE AND MAINTAIN A CABLE SYSTEM AND PROVIDE CABLE SERVICES IN THE CITY OF EDEN PRAIRIE; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF FRANCHISE; PROVIDING FOR CITY REGULATION AND ADMINISTRATION OF THE CABLE SYSTEM AND CABLE SERVICES. RECITALS The City of Eden Prairie, Minnesota("City")pursuant to applicable federal and state law is authorized to grant one or more nonexclusive cable television franchises to construct, operate, maintain and reconstruct cable television systems within the City limits. Qwest Broadband Services, Inc., d/b/a CenturyLink("Grantee") seeks a competitive cable television franchise with the City. Negotiations between Grantee and the City have been completed in accordance with the guidelines established by the City Code, Minnesota Statutes Chapter 238 and the Cable Act(47 U.S.C. Section 546). The City reviewed the legal, technical and financial qualifications of Grantee and, after a properly noticed public hearing, determined that it is in the best interest of the City and its residents to grant this competitive cable television franchise to Grantee. NOW, THEREFORE, THE CITY OF EDEN PRAIRIE DOES ORDAIN that a franchise is hereby granted to Qwest Broadband Services, Inc. to operate and maintain a Cable System and provide Cable Services in the City upon the following terms and conditions: SECTION 1 DEFINITIONS For the purpose of this Franchise, the following, terms, phrases, words, derivations and their derivations shall have the meanings 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 and words in the singular number include the plural number. In the event the meaning of any word or phrase not defined herein is uncertain, the definitions contained in applicable local, State or Federal law shall apply. "Access Channels"means any channel or portion of a channel utilized for public, educational or governmental programming. 1 3056782v1 "Affiliate" shall mean any Person controlling, controlled by or under common control of Grantee. "Applicable Laws"means any law, statute, charter, ordinance, rule, regulation, code, license, certificate, franchise,permit, writ, ruling, award, executive order, directive, requirement, injunction(whether temporary, preliminary or permanent),judgment, decree or other order issued, executed, entered or deemed applicable to Grantee by any governmental authority of competent jurisdiction. "Basic Cable Service"means any service tier which includes the lawful retransmission of local television broadcast and shall include the public, educational and governmental access channels. Basic Cable Service as defined herein shall be the definition set forth in 47 U.S.C. § 522(3). "Cable Act"means the Cable Communications Policy Act of 1984, 47 U.S.C. §§ 521 et seq., as amended by the Cable Television Consumer Protection and Competition Act of 1992, as further amended by the Telecommunications Act of 1996, as further amended from time to time. "Cable Service" shall mean (a) the one-way transmission to Subscribers of(i) Video Programming or(ii) Other Programming Service, and b) Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service. For the purposes of this definition, "video programming" is programming provided by, or generally considered comparable to programming provided by a television broadcast station; and, "other programming service" is information that a cable operator makes available to all Subscribers generally. "Cable System" or"System" shall have the meaning specified for"Cable System"in the Cable Act. Unless otherwise specified, it shall in this document refer to the Cable System utilized by the Grantee in the City under this Franchise. "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 defined by the FCC by regulation. "City" shall mean the City of Eden Prairie, a municipal corporation in the State of Minnesota. "City Code"means the Municipal Code of the City of Eden Prairie, Minnesota, as may be amended from time to time. "Commission"means the Southwest Suburban Cable Communications Commission consisting of the cities of Edina, Eden Prairie, Hopkins, Minnetonka and Richfield, Minnesota. "Connection"means the attachment of the Drop to the television set or Set Top Box of the Subscriber. 2 3056782v1 "Council" shall mean the governing body of the City. "Day"unless otherwise specified shall mean a calendar day. "Drop" shall mean the cable that connects the Subscriber terminal to the nearest feeder cable of the cable. "Effective Date" shall mean February 11, 2016. "Expanded Basic Service"means all Subscriber services other than Basic Cable Service provided by the Grantee covered by a regular monthly charge, but not including optional programming offered on a pay-per-channel or pay-per-view basis. "FCC"means the Federal Communications Commission, or a designated representative. "Franchise" shall mean the right granted by this Ordinance and conditioned as set forth herein. "Franchise Area"means the entire geographic area within the City as it is now constituted or may in the future be constituted. "Franchise Fee" shall mean the fee assessed by the City to Grantee, in consideration of Grantee's right to operate the Cable System within the City's Streets and rights of way, determined in amount as a percentage of Grantee's Gross Revenues and limited to the maximum percentage allowed for such assessment by federal law. The term Franchise Fee does not include the exceptions noted in 47 U.S.C. §542(g)(2)(A-E). "GAAP"means generally accepted accounting principles as promulgated and defined by the Financial Accounting Standards Board("FASB"), Emerging Issues Task Force ("EITF") and/or the U.S. Securities and Exchange Commission("SEC"). "Grantee"means Qwest Broadband Services, Inc., d/b/a CenturyLink. "Gross Revenues"means any and all compensation in whatever form, from any source, directly or indirectly earned by Grantee or any Affiliate of Grantee or any other Person who would constitute a cable operator of the Cable System under the Cable Act, derived from the operation of the Cable System to provide Cable Service within the City. Gross Revenues include, by way of illustration and not limitation, monthly fees charged Subscribers for Cable Services including Basic Cable Service, any expanded tiers of Cable Service, optional premium or digital services; pay-per-view services; Pay Services, installation, disconnection, reconnection and change-in-service fees, Leased Access Channel fees, all Cable Service lease payments from the Cable System to provide Cable Services in the City, late fees and administrative fees, payments or other consideration received by Grantee from programmers for carriage of programming on the Cable System and accounted for as revenue under GAAP; revenues from rentals or sales of Set Top Boxes or other Cable System equipment; advertising sales revenues booked in accordance with Applicable Law and GAAP; revenues from program guides and electronic 3 3056782v1 guides, additional outlet fees, Franchise Fees required by this Franchise, revenue from Interactive Services to the extent they are considered Cable Services under Applicable Law; revenue from the sale or carriage of other Cable Services, revenues from home shopping and other revenue-sharing arrangements. Copyright fees or other license fees paid by Grantee shall not be subtracted from Gross Revenues for purposes of calculating Franchise Fees. Gross Revenues shall include revenue received by any entity other than Grantee where necessary to prevent evasion or avoidance of the obligation under this Franchise to pay the Franchise Fees. Gross Revenues shall not include any taxes on services furnished by Grantee, which taxes are imposed directly on a Subscriber or user by a city, county, state or other governmental unit, and collected by Grantee for such entity. The Franchise Fee is not such a tax. Gross Revenues shall not include amounts which cannot be collected by Grantee and are identified as bad debt; provided that if amounts previously representing bad debt are collected, then those amounts shall be included in Gross Revenues for the period in which they are collected. Gross Revenues shall not include payments for PEG Access capital support. The City acknowledges and accepts that Grantee shall maintain its books and records in accordance with GAAP. "Interactive Services" are those services provided to Subscribers whereby the Subscriber either(a) both receives information consisting of either television or other signal and transmits signals generated by the Subscriber or equipment under his/her control for the purpose of selecting what information shall be transmitted to the Subscriber or for any other purpose or(b) transmits signals to any other location for any purpose. "Living Unit"means a distinct address as tracked in the QC network inventory,used by CenturyLink to identify existing or potential Subscribers. This includes, but is not limited to, single family homes, multi-dwelling units (e.g., apartment buildings and condominiums) and business locations. "Minnesota Cable Communications Act"means the provisions of Minnesota law governing the requirements for a cable television franchise as set forth in Minn. Stat. § 238, et. seq., as amended. "Mosaic Channel"means a channel which displays miniaturized media screens and related information for a particular group of Channels with common themes. The Mosaic Channel serves as a navigation tool for Subscribers, which displays the group of Access Channels on a single Channel screen and also provides for easy navigation to a chosen Access Channel. "Normal Business Hours"means those hours during which most similar businesses in City are open to serve customers. In all cases, "Normal Business Hours"must include some evening hours, at least one (1)night per week and/or some weekend hours. "Normal Operating Conditions"means those Service conditions which are within the control of Grantee. Those conditions which are not within the control of Grantee include,but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions which are ordinarily within the 4 3056782v1 control of Grantee include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the Cable System. "Pay Service"means programming (such as certain on-demand movie channels or pay- per-view programs) offered individually to Subscribers on a per-channel, per-program or per- event basis. "PEG"means public, educational and governmental. "Person"means any natural person and all domestic and foreign corporations, closely- held corporations, associations, syndicates,joint stock corporations, partnerships of every kind, clubs, businesses, common law trusts, societies and/or any other legal entity. "QC"means Qwest Corporation, wholly owned subsidiary of CenturyLink, Inc. and an Affiliate of Grantee. "Qualified Living Unit"means a Living Unit which meets the minimum technical qualifications defined by Grantee for the provision of Cable Service. A Living Unit receiving a minimum of 25Mbps downstream will generally be capable of receiving Cable Service subject to Grantee performing certain network grooming and conditioning. "Set Top Box"means an electronic device, which converts signals to a frequency not susceptible to interference within the television receiver of a Subscriber, and by an appropriate Channel selector also permits a Subscriber to view all signals included in the Basic Cable Service tier delivered at designated converter dial locations. "Street" shall mean the surface of and the space above and below any public Street, road, highway, freeway, lane, path, public way, alley, court, sidewalk, boulevard,parkway, drive or any easement or right-of-way now or hereafter held by City which shall, within its proper use and meaning in the sole opinion of City, entitle Grantee to the use thereof for the purpose of installing or transmitting over poles, wires, cables, conductors, ducts, conduits, vaults, man- holes, amplifiers, appliances, attachments and other property as may be ordinarily necessary and pertinent to a Cable System. "Subscriber"means a Person who lawfully receives Cable Service from Grantee. "Wireline MVPD"means a multichannel video programming distributor that utilizes the Streets to install cable or fiber and is engaged in the business of making available for purchase, by Subscribers, multiple Channels of video programming in the City. SECTION 2 FRANCHISE 2.1 Grant of Franchise. 5 3056782v1 (a) The City hereby authorizes Grantee to occupy or use the City's Streets subject to: 1)the provisions of this non-exclusive Franchise to provide Cable Service within the City; and 2) all applicable provisions of the City Code. Said Franchise shall constitute both a right and an obligation to provide Cable Services as required by the provisions of this Franchise. Nothing in this Franchise shall be construed to prohibit Grantee from: (1)providing services other than Cable Services to the extent not prohibited by Applicable Law; or(2) challenging any exercise of the City's legislative or regulatory authority in an appropriate forum. The City hereby reserves all of its rights to regulate such other services to the extent not prohibited by Applicable Law and no provision herein shall be construed to limit or give up any right to regulate. (b) Grantee promises and guarantees, as a condition of exercising the privileges granted by this Franchise, that any Affiliated Entity of the Grantee involved in the offering of Cable Service in the City, or directly involved in the ownership, management or operation of the Cable System in the City, shall also comply with all obligations of this Franchise. However, the City and Grantee acknowledge that QC will be primarily responsible for the construction and installation of the facilities in the Rights-of-Way which will be utilized by Grantee to provide Cable Services. So long as QC does not provide Cable Service to Subscribers in the City, QC will not be subject to the terms and conditions contained in this Franchise. QC's installation and maintenance of facilities in the Rights-of-Way is governed by applicable local, state and federal law. To the extent Grantee constructs and installs facilities in the Rights-of-Way, such installation will be subject to the terms and conditions contained in this Franchise. Grantee is responsible for all provisions in this Franchise related to: 1) its offering of Cable Services in the City; and 2)the operation of the Cable System regardless of what entity owns or constructs the facilities used to provide the Cable Service. The City and Grantee agree that to the extent QC violates any applicable federal, state, or local laws, rules, and regulations, the City shall first seek compliance directly from QC. In the event the City cannot resolve these violations or disputes with QC, 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. 2.2 Reservation of Authority. The Grantee specifically agrees to comply with the lawful provisions of the City Code and applicable regulations of the City. Subject to the police power exception below, in the event of a conflict between A)the lawful provisions of the City Code or applicable regulations of the City and B) this Franchise, the express provisions of this Franchise shall govern. Subject to express federal and state preemption, the material terms and conditions contained in this Franchise may not be unilaterally altered by the City through subsequent amendments to the City Code, ordinances or any regulation of City, except in the lawful exercise of City's police power. Grantee acknowledges that the City may modify its regulatory policies by lawful exercise of the City's police powers throughout the term of this Franchise. Grantee agrees to comply with such lawful modifications to the City Code; however, Grantee reserves all rights it may have to challenge such modifications to the City Code whether arising in contract or at law. The City reserves all of its rights and defenses to such challenges whether arising in contract or at law. Nothing in this Franchise shall (A) abrogate the right of the 6 3056782v1 City to perform any public works or public improvements of any description, (B) be construed as a waiver of any codes or ordinances of general applicability promulgated by the City, or(C)be construed as a waiver or release of the rights of the City in and to the Streets. 2.3 Franchise Term. This Franchise shall be in effect for a term of five (5) years from the date of acceptance by Grantee,unless terminated sooner as hereinafter provided. Six (6) months prior to the expiration of the initial five (5) year term, if City determines that Grantee is in compliance with all other material terms of this Franchise including the build out obligations set forth in this Franchise as required by Applicable Law, the City shall have the unilateral right to extend the Franchise for an additional term of no less than five (5) years and no more than ten(10) years. 2.4 Franchise Area. The Grantee is hereby authorized to provide Cable Services over a Cable System within the jurisdictional boundaries of the City, including any areas annexed by the City during the term of this Franchise. The parties acknowledge that Grantee is not the first entrant into the wireline video market in the City. The Grantee acknowledges that the City desires wireline competition throughout the entire City so all residents may receive the benefits of competitive Cable Services. Grantee aspires to provide Cable Service to all households within the City by the end of the five year(5) term of this Franchise. Grantee agrees that its deployment of Cable Service in the City will be geographically dispersed throughout the City, and shall be made available to diverse residential neighborhoods of the City without discrimination. 2.5 Franchise Nonexclusive. The Franchise granted herein shall be nonexclusive. The City specifically reserves the right to grant, at any time, such additional franchises for a Cable System as it deems appropriate provided, however, such additional grants shall not operate to materially modify, revoke, or terminate any rights previously granted to Grantee other than as described in Section 17.17. The grant of any additional franchise shall not of itself be deemed to constitute a modification, revocation, or termination of rights previously granted to Grantee. Any additional cable franchise grants shall comply with Minn. Stat. Section 238.08 and any other applicable federal level playing field requirements. 2.6 Build Out. (a) Initial build out. No later than the second anniversary of the Effective Date of this Franchise, Grantee shall be capable of serving a minimum of fifteen percent (15%) of the City's households with Cable Service; provided, however, Grantee will make its best efforts to complete such deployment within a shorter period of time. Grantee agrees that this initial minimum build-out commitment shall include a significant number of households below the median income in the City. City shall,upon written request of Grantee,provide detailed maps of such areas. Nothing in this Franchise shall restrict Grantee from serving additional households in the City with Cable Service. (b) Quarterly Meetings. In order to permit the Commission to monitor and enforce the provisions of this section and other provisions of this Franchise, the Grantee shall, upon demand,promptly make available to the Commission maps and other documentation showing exactly where within the City the Grantee is currently providing Cable Service. Grantee shall meet with the Commission, not less than once quarterly, to 7 3056782v1 demonstrate Grantee's compliance with the provisions of this section concerning the deployment of Cable Services in the City including, by way of example, the provision of this section in which Grantee commits that a significant portion of its initial investment will be targeted to areas below the median income within the City, and the provisions of this section that prohibit discrimination in the deployment of Cable Services. In order to permit the Commission and the City to monitor and enforce the provisions of this section and other provisions of this Franchise, the Grantee shall, commencing April 15, 2016, and continuing throughout the term of this Franchise, meet quarterly with the Commission and make available to the Commission the following information: (i) The total number of Living Units throughout the City; (ii) The geographic area within the City where the Grantee is capable of delivering Cable Service through either a FTTH or FTTN method of service delivery which shall include sufficient detail to allow the City to determine the availability of Cable Services at commercially-zoned parcels; (iii) The actual number of Qualified Living Units capable of receiving Cable Service from Grantee through FTTH and FTTN; and (iv) A list of the public buildings and educational institutions capable of receiving Cable Service from the Grantee (see list attached hereto as Exhibit A). (c) Additional build out based on Market Success. If, at any quarterly meeting, including any quarterly meeting prior to the second anniversary of the Effective Date of this Franchise as referenced in Section 2.6(a)herein, Grantee is actually serving twenty seven and one-half percent(27.5%) of the households capable of receiving Cable Service, then Grantee agrees the minimum build-out commitment shall increase to include all of the households then capable of receiving Cable Service plus an additional fifteen(15%) of the total households in the City, which Grantee agrees to serve within two (2) years from the quarterly meeting; provided, however, the Grantee shall make its best efforts to complete such deployment within a shorter period of time. For example, if, at a quarterly meeting with the Commission, Grantee shows that it is capable of serving sixty percent (60%) of the households in the City with Cable Service and is actually serving thirty percent(30%) of those households with Cable Service, then Grantee will agree to serve an additional fifteen percent (15%) of the total households in the City no later than two (2) years after that quarterly meeting (a total of seventy-five percent (75%) of the total households). This additional build-out based on market success shall continue until every household in the City is served. (d) Nondiscrimination. Grantee shall provide Cable Service under non- discriminatory rates and reasonable terms and conditions to all Subscribers who reside in Living Units in any location where the Grantee is capable of providing Cable Service. Grantee shall not arbitrarily refuse to provide Cable Services to any Person or in any location where the Grantee is capable of providing Cable Service. Any Qualified Living Unit should also include Commercially-Zoned Parcels. "Commercially-Zoned Parcels" 8 3056782v1 mean any Street address or municipally identified lot or parcel of real estate with a building. Grantee shall not deny Cable Services to any group of Subscribers or potential residential Subscribers based upon the income level of residents of the local area in which such group resides, nor shall Grantee base decisions about construction or maintenance of its Cable System or facilities based upon the income level of residents of the local area in which such group resides. Grantee shall provide such service at non-discriminatory monthly rates for residential Subscribers, consistent with Applicable Law. Grantee shall not discriminate between or among any individuals in the availability of Cable Service based upon income in accordance and consistent with 47 U.S.C. Section 541(a)(3), or based upon race or ethnicity. (e) Standard Installation. Grantee shall provide Cable Services at its standard installation within seven(7) days of a request by any Person in a Qualified Living Unit. A request shall be deemed made on the date of signing a service agreement, receipt of funds by Grantee or receipt by Grantee of a verified verbal or written request. (f) Multiple Dwelling Units. The Grantee shall offer the individual units of a multiple dwelling unit all Cable Services offered to other Dwelling Units in the City. Grantee shall,upon request, individually wire units upon request of the property owner or renter who has been given written authorization by the owner. Such offering is conditioned upon the Grantee having legal access to said unit and any payment(for Grantee's reasonable costs of internal wiring) as applicable. The City acknowledges that the Grantee cannot control the dissemination of particular Cable Services beyond the point of demarcation at a multiple dwelling unit. 2.7 Periodic Public Review of Franchise. Within sixty(60) Days of the third anniversary of the Effective Date of this Franchise or third annual anniversary of any extension of the Franchise term, the City may conduct a public review of the Franchise. The purpose of any such review shall be to ensure, with the benefit of full opportunity for public comment, that the Grantee continues to effectively serve the public in the light of new developments in cable law and regulation, cable technology, cable company performance with the requirements of this Franchise, local regulatory environment, community needs and interests, and other such factors. Both the City and Grantee agree to make a full and good faith effort to participate in the review. So long as Grantee receives reasonable notice, Grantee shall participate in the review process and shall fully cooperate. The review shall not operate to modify or change any provision of this Franchise without mutual written consent in accordance with Section 17.6 of this Franchise. 2.8 Transfer of Ownership. (a) No sale, transfer, assignment or"fundamental corporate change", as defined in Minn. Stat. § 238.083, of this Franchise shall take place until the parties to the sale, transfer, or fundamental corporate change files a written request with City for its approval, provided, however, that said approval shall not be required where Grantee grants a security interest in its Franchise and assets to secure an indebtedness. (b) City shall have thirty(30) Days from the time of the request to reply in writing and indicate approval of the request or its determination that a public hearing is 9 3056782v1 necessary due to potential adverse affect on Grantee's Subscribers resulting from the sale or transfer. Such approval or determination shall be expressed in writing within thirty (30) Days of receipt of said request, or the request shall be deemed approved as a matter of law. (c) If a public hearing is deemed necessary pursuant to (b) above, such hearing shall be commenced within thirty(30) Days of such determination and notice of any such hearing shall be given in accordance with local law or fourteen (14) Days prior to the hearing by publishing notice thereof once in a newspaper of general circulation in City. The notice shall contain the date, time and place of the hearing and shall briefly state the substance of the action to be considered by City. (d) Within thirty(30) Days after the closing of the public hearing, City shall approve or deny in writing the sale or transfer request. City shall set forth in writing with particularity its reason(s) for denying approval. City shall not unreasonably withhold its approval. (e) The parties to the sale or transfer of the Franchise only, without the inclusion of the System in which substantial construction has commenced, shall establish that the sale or transfer of only the Franchise will be in the public interest. (f) Any sale or transfer of stock in Grantee so as to create a new controlling interest in the System shall be subject to the requirements of this Section 2.8. The term "controlling interest" as used herein is not limited to majority stock ownership,but includes actual working control in whatever manner exercised. (g) In no event shall a transfer or assignment of ownership or control be approved without the transferee becoming a signatory to this Franchise and assuming all rights and obligations thereunder, and assuming all other rights and obligations of the transferor to the City. (h) In the event of any proposed sale or assignment pursuant to paragraph(a) of this section, City shall have the right of first refusal of any bona fide offer to purchase only the Cable System. Bona fide offer, as used in this section, means an offer received by the Grantee which it intends to accept subject to City's rights under this section. This written offer must be conveyed to City along with the Grantee's written acceptance of the offer contingent upon the rights of City provided for in this section. City shall be deemed to have waived its rights under this paragraph (h) in the following circumstances: (i) If it does not indicate to Grantee in writing, within thirty(30) Days of notice of a proposed sale or assignment, its intention to exercise its right of purchase; or (ii) It approves the assignment or sale of the Franchise as provided within this section 10 3056782v1 (i) A transfer of the Franchise shall not include a transfer of ownership or other interest in Grantee to the parent of Grantee or to another Affiliate of Grantee; transfer of an interest in the Franchise or the rights held by Grantee under the Franchise to the parent of Grantee or to another Affiliate of Grantee; any action which is the result of a merger of the parent of Grantee; or any action which is the result of a merger of another Affiliate of Grantee. Nothing in this Section 2.8 (i) shall be read to serve as a waiver of Grantee's obligation to obtain the City's advance written consent to any proposed transfer that constitutes a change in the "controlling interest" of the Grantee as set forth in 2.8 (f) herein and Minn. Stat. Section 238.083. 2.9 Expiration. Upon expiration of the Franchise, the City shall have the right at its own election and subject to Grantee's rights under Section 626 of the Cable Act to: (a) extend the Franchise, though nothing in this provision shall be construed to require such extension; (b) renew the Franchise, in accordance with Applicable Laws; (c) invite additional franchise applications or proposals; (d) terminate the Franchise subject to any rights Grantee has under Section 626 of the Cable Act; or (e) take such other action as the City deems appropriate. 2.10 Right to Require Removal of Property. At the expiration of the term for which the Franchise is granted provided no renewal is granted, or upon its forfeiture or revocation as provided for herein, the City shall have the right to require Grantee to remove at Grantee's own expense all or any part of the Cable System,used exclusively to provide Cable Service, from all Streets and public ways within the Franchise Area within a reasonable time. If Grantee fails to do so, the City may perform the work and collect the cost thereof from Grantee. 2.11 Continuity of Service Mandatory. It shall be the right of all Subscribers to receive all available services insofar as their financial and other obligations to Grantee are honored. In the event that Grantee elects to overbuild, rebuild, modify, or sell the system, or the City revokes or fails to renew the Franchise, Grantee shall make its best effort to ensure that all Subscribers receive continuous uninterrupted service, regardless of the circumstances, during the lifetime of the Franchise. In the event of expiration,purchase, lease-purchase, condemnation, acquisition, taking over or holding of plant and equipment, sale, lease, or other transfer to any other Person, including any other grantee of a cable communications franchise, the current Grantee shall cooperate fully to operate the system in accordance with the terms and conditions of this Franchise for a temporary period sufficient in length to maintain continuity of service to all Subscribers. 11 3056782v1 SECTION 3 OPERATION IN STREETS AND RIGHTS-OF-WAY 3.1 Use of Streets. (a) Grantee may, subject to the terms of this Franchise, erect, install, construct, repair, replace, reconstruct and retain in, on, over,under, upon, across and along the Streets within the City such lines, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances,pedestals, attachments and other property and equipment as are necessary and appurtenant to the operation of a Cable System within the City. Without limiting the foregoing and subject to Section 2.1(b)herein, Grantee expressly agrees that it will construct, operate and maintain its Cable System in compliance with, and subject to, the requirements of the City Code, including by way of example and not limitation, those requirements governing the placement of Grantee's Cable System; and with other applicable City Codes, and will obtain and maintain all permits and bonds required by the City Code in addition to those required in this Franchise. (b) All wires, conduits, cable and other property and facilities of Grantee shall be so located, constructed, installed and maintained as not to endanger or unnecessarily interfere with the usual and customary trade, traffic and travel upon, or other use of, the Streets of City. Grantee shall keep and maintain all of its property in good condition, order and repair so that the same shall not menace or endanger the life or property of any Person. Grantee shall keep accurate maps and records of all of its wires, conduits, cables and other property and facilities located, constructed and maintained in the City. (c) All wires, conduits, cables and other property and facilities of Grantee, shall be constructed and installed in an orderly and workmanlike manner. All wires, conduits and cables shall be installed, where possible, parallel with electric and telephone lines. Multiple cable configurations shall be arranged in parallel and bundled with due respect for engineering considerations. 3.2 Construction or Alteration. Subject to Section 2.1(b)herein, Grantee shall in all cases comply with the City Code, City resolutions and City regulations regarding the acquisition of permits and/or such other items as may be reasonably required in order to construct, alter or maintain the Cable System. Grantee shall,upon request, provide information to the City regarding its progress in completing or altering the Cable System. 3.3 Non-Interference. Grantee shall exert its best efforts to construct and maintain a Cable System so as not to interfere with other use of Streets. Grantee shall, where possible in the case of above ground lines, make use of existing poles and other facilities available to Grantee. When residents receiving underground service or who will be receiving underground service will be affected by proposed construction or alteration, Grantee shall provide such notice as set forth in the permit or in City Code of the same to such affected residents. 3.4 Consistency with Designated Use. Notwithstanding the above grant to use Streets, no Street shall be used by Grantee if the City, in its sole opinion, determines that such 12 3056782v1 use is inconsistent with the terms, conditions or provisions by which such Street was created or dedicated, or presently used under Applicable Laws. 3.5 Undergrounding. Grantee shall place underground all of its transmission lines which are located or are to be located above or within the Streets of the City in the following cases: (a) all other existing utilities are required to be placed underground by statute, resolution,policy or other Applicable Law; (b) Grantee is unable to get pole clearance; (c) underground easements are obtained from developers of new residential areas; or (d) utilities are overhead but residents prefer underground(service provided at cost). If an ordinance is passed which involves placing underground certain utilities including Grantee's cable plant which is then located overhead, Grantee shall participate in such underground project and shall remove poles, cables and overhead wires if requested to do so and place facilities underground. Nothing herein shall mandate that City provide reimbursement to Grantee for the costs of such relocation and removal. However, if the City makes available funds for the cost of placing facilities underground, nothing herein shall preclude the Grantee from participating in such funding to the extent consistent with the City Code or Applicable Laws. Grantee shall use conduit or its functional equivalent to the greatest extent possible for undergrounding, except for Drops from pedestals to Subscribers' homes and for cable on other private property where the owner requests that conduit not be used. Cable and conduit shall be utilized which meets the highest industry standards for electronic performance and resistance to interference or damage from environmental factors. Grantee shall use, in conjunction with other utility companies or providers, common trenches for underground construction wherever available. 3.6 Maintenance and Restoration. (a) Restoration. In case of disturbance of any Street, public way, paved area or public improvement by Grantee, Grantee shall, at its own cost and expense and in accordance with the requirements of Applicable Law, restore such Street,public way, paved area or public improvement to substantially the same condition as existed before the work involving such disturbance took place. All restoration occurring in private easements or on other private property shall be performed in accordance with the City Code. Grantee shall perform all restoration work within a reasonable time and with due regard to seasonal working conditions. If Grantee fails, neglects or refuses to make restorations as required under this section, then the City may do such work or cause it to be done, and the cost thereof to the City shall be paid by Grantee. If Grantee causes any 13 3056782v1 damage to private property in the process of restoring facilities, Grantee shall repair such damage. (b) Maintenance. Grantee shall maintain all above ground improvements that it places on City right-of-way pursuant to the City Code and any permit issued by the City. In order to avoid interference with the City's ability to maintain the right-of-way, Grantee shall provide such clearance as is required by the City Code and any permit issued by the City. If Grantee fails to comply with this provision and by its failure property is damaged, Grantee shall be responsible for all damages caused thereby. (c) Disputes. In any dispute over the adequacy of restoration or maintenance relative to this section, final determination shall be the prerogative of the City, Department of Public Works and consistent with the City Code and any permit issued by the City. 3.7 Work on Private Property. Grantee, with the consent of property owners, shall have the authority, pursuant to the City Code, to trim trees upon and overhanging Streets, alleys, sidewalks, and public ways so as to prevent the branches of such trees from coming in contact with the wires and cables of Grantee, except that at the option of the City, such trimming may be done by it or under its supervision and direction at the reasonable expense of Grantee. 3.8 Relocation. (a) City Property. If, during the term of the Franchise, the City or any government entity elects or requires a third party to alter, repair, realign, abandon, improve, vacate, reroute or change the grade of any Street, public way or other public property; or to construct, maintain or repair any public improvement; or to replace, repair install, maintain, or otherwise alter any cable, wire conduit,pipe, line,pole, wire-holding structure, structure, or other facility, including a facility used for the provision of utility or other services or transportation of drainage, sewage or other liquids, for any public purpose, Grantee shall,upon request, except as otherwise hereinafter provided, at its sole expense remove or relocate as necessary its poles, wires, cables,underground conduits, vaults, pedestals, manholes and any other facilities which it has installed. Nothing herein shall mandate that City provide reimbursement to Grantee for the costs of such relocation and removal. However, if the City makes available funds for the cost of placing facilities underground, nothing herein shall preclude the Grantee from participating in such funding to the extent consistent with the City Code or Applicable Laws. (b) Utilities and Other Franchisees. If, during the term of the Franchise, another entity which holds a franchise or any utility requests Grantee to remove or relocate such facilities to accommodate the construction, maintenance or repair of the requesting party's facilities, or their more efficient use, or to "make ready" the requesting party's facilities for use by others, or because Grantee is using a facility which the requesting party has a right or duty to remove, Grantee shall do so. The companies involved may decide among themselves who is to bear the cost of removal or relocation, pursuant to City Code, and provided that the City shall not be liable for such costs. 14 3056782v1 (c) Notice to Remove or Relocate. Any Person requesting Grantee to remove or relocate its facilities shall give Grantee no less than forty-five (45) Days' advance written notice to Grantee advising Grantee of the date or dates removal or relocation is to be undertaken; provided, that no advance written notice shall be required in emergencies or in cases where public health and safety or property is endangered. (d) Failure by Grantee to Remove or Relocate. If Grantee fails, neglects or refuses to remove or relocate its facilities as directed by the City; or in emergencies or where public health and safety or property is endangered, the City may do such work or cause it to be done, and the cost thereof to the City shall be paid by Grantee. If Grantee fails, neglects or refuses to remove or relocate its facilities as directed by another franchisee or utility, that franchisee or utility may do such work or cause it to be done, and if Grantee would have been liable for the cost of performing such work, the cost thereof to the party performing the work or having the work performed shall be paid by Grantee. (e) Procedure for Removal of Cable. Grantee shall not remove any underground cable or conduit which requires trenching or other opening of the Streets along the extension of cable to be removed, except as hereinafter provided. Grantee may remove any underground cable from the Streets which has been installed in such a manner that it can be removed without trenching or other opening of the Streets along the extension of cable to be removed. Subject to Applicable Law, Grantee shall remove, at its sole cost and expense, any underground cable or conduit by trenching or opening of the Streets along the extension thereof or otherwise which is ordered to be removed by the City based upon a determination, in the sole discretion of the City, that removal is required in order to eliminate or prevent a hazardous condition. Underground cable and conduit in the Streets which is not removed shall be deemed abandoned and title thereto shall be vested in the City. (f) Movement of Buildings. Grantee shall, upon request by any Person holding a building moving permit, franchise or other approval issued by the City, temporarily remove, raise or lower its wire to permit the movement of buildings. The expense of such removal, raising or lowering shall be paid by the Person requesting same, and Grantee shall be authorized to require such payment in advance. The City shall require all building movers to provide not less than fifteen(15) Days' notice to the cable company to arrange for such temporary wire changes. SECTION 4 REMOVAL OR ABANDONMENT OF SYSTEM 4.1 Removal of Cable System. In the event that: (1) the use of the Cable System is discontinued for any reason for a continuous period of twelve (12)months; or(2) the Cable System has been installed in a Street without complying with the requirements of this Franchise, Grantee, at its expense shall, at the demand of the City remove promptly from the Streets all of the Cable System, used only to provide Cable Service, other than any which the City may permit to be abandoned in place. In the event of any such removal Grantee shall promptly restore to a 15 3056782v1 condition as nearly as possible to its prior condition the Street or other public places in the City from which the System has been removed. 4.2 Abandonment of Cable System. In the event of Grantee's abandonment of the Cable System,used only to provide Cable Service, City shall have the right to require Grantee to conform to the state right-of-way rules, Minn. Rules, Chapter 7819. The Cable System to be abandoned in place shall be abandoned in the manner prescribed by the City. Grantee may not abandon any portion of the System without having first given three (3)months written notice to the City. Grantee may not abandon any portion of the System without compensating the City for damages resulting from the abandonment. 4.3 Removal after Abandonment or Termination. If Grantee has failed to commence removal of System, used only to provide Cable Service, or such part thereof as was designated by City, within thirty(30) days after written notice of City's demand for removal consistent with Minn. Rules, Ch. 7819, is given, or if Grantee has failed to complete such removal within twelve (12) months after written notice of City's demand for removal is given, City shall have the right to apply funds secured by the letter of credit and performance bond toward removal and/or declare all right, title, and interest to the Cable System to be in City with all rights of ownership including, but not limited to, the right to operate the Cable System or transfer the Cable System to another for operation by it. 4.4 City Options for Failure to Remove Cable System. If Grantee has failed to complete such removal within the time given after written notice of the City's demand for removal is given, the City shall have the right to exercise one of the following options: (a) Declare all right, title and interest to the System, used only to provide Cable Service, to be in the City or its designee with all rights of ownership including, but not limited to, the right to operate the System or transfer the System to another for operation by it; or (b) Declare the System abandoned and cause the System, if used only to provide Cable Service, or such part thereof as the City shall designate, to be removed at no cost to the City. The cost of said removal shall be recoverable from the security fund, indemnity and penalty section provided for in this Franchise or from Grantee directly. (c) Upon termination of service to any Subscriber, Grantee shall promptly remove all its facilities and equipment from within the dwelling of a Subscriber who owns such dwelling upon his or her written request, except as provided by Applicable Law. Such Subscribers shall be responsible for any costs incurred by Grantee in removing the facilities and equipment. 4.5 System Construction and Equipment Standards. The Cable System shall be installed and maintained in accordance with standard good engineering practices and shall conform, when applicable, with the National Electrical Safety Code, the National Electrical Code and the FCC's Rules and Regulations. 16 3056782v1 4.6 System Maps and Layout. To the extent not otherwise provided for in Section 2.6(b), Grantee, or an affiliate, shall maintain complete and accurate records, maps and diagrams of the location of all its facilities used to provide Cable Services and the Cable System maintained by QC in the Streets and make them available to the City upon request. SECTION 5 SYSTEM DESIGN AND CAPACITY 5.1 Availability of Signals and Equipment. (a) The Cable System shall have a bandwidth capable of providing the equivalent of a typical 750 MHz Cable System. Recognizing that the City has limited authority under federal law to designate the technical method by which Grantee provides Cable Service, as of the Effective Date of this Franchise, Grantee provides its Cable Service utilizing two (2) different methods. First, using a PON platform, the Grantee provides Cable Service to some Qualified Living Units by connecting fiber directly to the household("FTTP"). Second, the Grantee provides Cable Service to some Qualified Living Units by deploying fiber further into the neighborhoods and using the existing copper infrastructure to increase broadband speeds ("FTTN"). Generally speaking, when Grantee deploys FTTN, households located within four thousand(4,000) cable feet of a remote terminal shall receive broadband speeds capable of providing Cable Service. In both the FTTP and FTTN footprint, a household receiving a minimum of 25 Mbps downstream will generally be capable of receiving Cable Service after Grantee performs certain network grooming and conditioning. (b) The Grantee shall comply with all FCC regulations regarding carriage of digital and HDTV transmissions. (c) Grantee agrees to maintain the Cable System in a manner consistent with, or in excess of the specifications in Section 5.1 (a) and(b)throughout the term of the Franchise with sufficient capability and technical quality to enable the implementation and performance of all the requirements of this Franchise, including the exhibits hereto, and in a manner which meets or exceeds FCC technical quality standards at 47 C.F.R. § 76 Subpart K, regardless of the particular format in which a signal is transmitted. 5.2 Free Cable Service to Public Buildings. (a) As part of its support for PEG use of the System, the Grantee shall provide a free drop to the Subscriber network and free Basic Cable Service and Expanded Basic Cable Service to all of the sites listed on Exhibit A attached hereto, and to such other public institutions as the City may reasonably request from time to time provided such location is a Qualified Living Unit and not currently receiving service from another provider. However, City may determine to disconnect the other cable provider and require Grantee to meet the free service obligation, as determined in City's sole discretion. 17 3056782v1 (b) The Grantee is only required to provide a single free drop to the Subscriber network, to a single outlet at a point within the location selected by that location. However, the location may extend the drop to multiple outlets and receive free Basic and Expanded Basic Cable Service at each outlet so long as such extension does not result in any violations of applicable leakage standards which the Grantee is obligated to meet. A location that wishes to install multiple outlets may do so itself, or may contract with the Grantee to do so. Grantee shall provide up to three (3) additional Set Top Boxes to each new location free of charge so that the services can be received and individually tuned by each receiver connected to the drop at a location. If an institution physically moves locations, such institution may move existing Set Top Boxes to the new locations with a free drop, and the moved Set Top Box will not count against the three (3) additional Set Top Boxes. Grantee will replace and maintain Set Top Boxes it provides or that it had provided as necessary so that locations may continue to view the free services Grantee is required to provide. Provided such location is a Qualified Living Unit and not currently receiving service from another provider. However, City may determine to disconnect the other cable provider and require Grantee to meet the free service obligation, as determined in City's sole discretion. (c) Outlets of Basic and Expanded Basic Cable Service provided in accordance with this section 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. Grantee agrees that if any broadband service is required in order to receive the free service obligation set forth in this section, Grantee will provide such broadband service free of charge for the sole purpose of facilitating the provision of free Cable Service required by this section. Grantee agrees that it will not offset, deduct or reduce its payment of past,present or future Franchise Fees required as a result of its obligation to connections or services to public facilities. 5.3 System Specifications. (a) System Maintenance. In all its construction and service provision activities, Grantee shall meet or exceed the construction, technical performance, extension and service requirements set forth in this Franchise. (b) Emergency Alert Capability. At all times during the term of this Franchise, Grantee shall provide and maintain an Emergency Alert System(EAS) consistent with applicable federal law and regulations including 47 C.F.R., Part 11, and any Minnesota State Emergency Alert System requirements. The City may identify authorized emergency officials for activating the EAS consistent with the Minnesota State Emergency Statewide Plan ("EAS Plan"). The City may also develop a local plan containing methods of EAS message distribution, subject to Applicable Laws and the EAS Plan. Nothing in this section is intended to expand Grantee's obligations beyond that which is required by the EAS Plan and Applicable Law. 18 3056782v1 (c) Standby Power. Grantee shall provide standby power generating capacity at the Cable System control center. Grantee shall maintain standby power system supplies, rated at least at two (2) hours' duration, throughout the trunk and distribution networks. In addition, Grantee shall have in place throughout the Franchise term a plan, and all resources necessary for implementation of the plan, for dealing with outages of more than two (2)hours. (d) Technical Standards. The technical standards used in the operation of the Cable System shall comply, at minimum, with the applicable technical standards promulgated by the FCC relating to Cable Systems pursuant to Title 47, Section 76, Subpart K of the Code of Federal Regulations, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. The Cable System shall be installed and maintained in accordance with standard good engineering practices and shall conform with the National Electrical Safety Code and all other Applicable Laws governing the construction of the Cable System. 5.4 Performance Testing. Grantee shall perform all applicable system tests at the intervals required by the FCC, and all other tests reasonably necessary to determine compliance with technical standards required by this Franchise. These tests shall include, at a minimum: (a) Initial proof of performance for any construction; (b) Semi-annual compliance tests; (c) Tests in response to Subscriber complaints; (d) Tests requested by the City to demonstrate franchise compliance; and (e) Written records of all system test results performed by or for Grantee shall be maintained, and shall be available for City inspection upon request. 5.5 Special Testing. (a) Throughout the term of this Franchise, City shall have the right to inspect all construction or installation work performed pursuant to the provisions of the Franchise. In addition, City may require special testing of a location or locations within the System if there is a particular matter of controversy or unresolved complaints regarding such construction or installation work or pertaining to such location(s). Demand for such special tests may be made on the basis of complaints received or other evidence indicating an unresolved controversy or noncompliance. Such tests shall be limited to the particular matter in controversy or unresolved complaints. City shall endeavor to so arrange its request for such special testing so as to minimize hardship or inconvenience to Grantee or to the Subscribers caused by such testing. (b) Before ordering such tests, Grantee shall be afforded thirty(30) Days following receipt of written notice to investigate and, if necessary, correct problems or complaints upon which tests were ordered. City shall meet with Grantee prior to 19 3056782v1 requiring special tests to discuss the need for such and, if possible, visually inspect those locations which are the focus of concern. If, after such meetings and inspections, City wishes to commence special tests and the thirty(30) Days have elapsed without correction of the matter in controversy or unresolved complaints, the tests shall be conducted at Grantee's expense by Grantee's qualified engineer. The City shall have a right to participate in such testing by having an engineer of City's choosing, and at City's expense, observe and monitor said testing. SECTION 6 PROGRAMMING AND SERVICES 6.1 Categories of Programming Service. Grantee shall provide video programming services in at least the following broad categories: Local Broadcast(subject to federal carriage requirements) Public Broadcast News and Information Sports General Entertainment Arts/Performance/Humanities Science/Technology Children/Family/Seniors Foreign Language/Ethnic Programming Public, Educational and Governmental Access Programming (to the extent required by the Franchise) Movies Leased Access 6.2 Changes in Programming Services. Grantee shall not delete or so limit as to effectively delete any broad category of programming within its control without the City's consent. Further, Grantee shall provide at least thirty(30) Days' prior written notice to Subscribers and to the City of Grantee's request to effectively delete any broad category of programming or any Channel within its control, including all proposed changes in bandwidth or Channel allocation and any assignments including any new equipment requirements that may occur as a result of these changes. 6.3 Parental Control Device. Upon request by any Subscriber, Grantee shall make available for sale or lease a parental control or lockout device that will enable the Subscriber to block all access to any and all Channels without affecting those not blocked. Grantee shall inform Subscribers of the availability of the lockout device at the time of original subscription and annually thereafter. 6.4 FCC Reports. The results of any tests required to be filed by Grantee with the FCC shall also be copied to City within ten(10) Days of the conduct of the date of the tests. 6.5 Annexation. Unless otherwise provided by Applicable Law, including the City Code, upon the annexation of any additional land area by City, the annexed area shall thereafter 20 3056782v1 be subject to all the terms of this Franchise upon sixty(60) Days written notification to Grantee of the annexation by City. Unless otherwise required by Applicable Laws, nothing herein shall require the Grantee to expand its Cable System to serve, or to offer Cable Service to any area annexed by the City if such area is then served by another Wireline MVPD franchised to provide multichannel video programming. 6.6 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. 6.7 Nonvoice Return Capability. Grantee is required to use cable and associated electronics having the technical capacity for nonvoice return communications. SECTION 7 PUBLIC, EDUCATIONAL AND GOVERNMENTAL ACCESS 7.1 Number of PEG Access Channels. Within one hundred eighty(180) days of the Effective Date, Grantee will make available three (3) PEG Access Channels. 7.2 Digital and High Definition PEG Carriage Requirements. While the parties recognize that while the primary signals of local broadcast stations are simulcast in standard definition("SD") and high definition("HD") formats, the Grantee's obligation with respect to carriage of PEG in HD and SD formats shall be as follows: (a) Grantee agrees to carry all PEG Access Channels in HD provided the entity originating the signal provides the Grantee an HD signal. Further, Grantee will downconvert any such signal to an SD format so that Subscribers who choose not to subscribe to an HD package may receive said signal in an SD format. (b) Grantee is not required to convert a signal delivered in a lower quality format to a higher quality format. The City shall have no obligation to provide a signal to the Grantee in a HD format. (c) All PEG Access Channels must be receivable by Subscribers without special expense in addition to the expense paid to receive commercial services the Subscriber receives. City acknowledges that HD programming may require the viewer to have special viewer equipment(such as an HDTV and an HD-capable digital device/receiver), but any Subscriber who can view an HD signal delivered via the Cable System at a receiver shall also be able to view the HD Access Channels at that receiver, without additional charges or equipment. By agreeing to make PEG available in HD format, Grantee is not agreeing to provide free HD equipment to Subscribers including complimentary municipal and educational accounts, or to modify its equipment or pricing policies in any manner. City acknowledges that not every Subscriber may be able to 21 3056782v1 view HD PEG programming (for example, because they do not have an HDTV in their home or have chosen not to take an HD-capable receiving device from Grantee or other equipment provider) or on every television in the home. (d) The Grantee,upon request of the City, will provide technical assistance or diagnostic services to determine whether or not the problem with the PEG signals is the result of matters for which the Grantee is responsible, and if so the Grantee will take prompt corrective actions. (e) The Grantee will provide any PEG Access Channels on the Basic Cable Service tier throughout the life of the Franchise, or if there is no Basic Cable Service tier, shall provide the PEG Access Channels to any Person who subscribes to any level of cable video programming service, and otherwise in accordance with Applicable Laws. To the extent technically feasible, Grantee shall, upon request from the City, provide City with quarterly viewership numbers for each of the PEG Access Channels carried on Grantee's Cable System. (f) Grantee shall facilitate carriage of PEG Access Channel program listings on its interactive programming guide, at no cost to the City provided that the City shall hold Grantee harmless should the City or PEG providers fail to provide correct or timely information to the interactive guide programmers. (g) If Channels are selected through menu systems, the PEG Access Channels shall be displayed in the same manner as other Channels, and with equivalent information regarding the programming on the Channel. To the extent that any menu system is controlled by a third party, Grantee shall ensure that the Grantee will provide PEG listings on that menu system, if it is provided with the programming information by the City. 7.3 Control of PEG Channels. The control and administration of the Access Channels shall rest with the City and the City may delegate, from time to time over the term of this Franchise, such control and administration to various entities as determined in City's sole discretion. 7.4 Transmission of Access Channels. Access Channels may be used for transmission of non-video signals in compliance with Applicable Laws. This may include downstream transmission of data using a protocol such as TCP/IP or current industry standards. Should Grantee develop the capability to provide bi-directional data transmission, spectrum capacity shall be sufficient to allow Subscribers to transmit data to PEG facilities. 7.5 Access Channel Locations. (a) Grantee shall provide the City's government access channel in both HD and SD. The government access channel will be located on Channel 235 and shall at all times be located in the Channel neighborhood offering news/public affairs programming on Grantee's Cable System channel lineup. The government access channel shall have video and audio signal strength, signal quality, and functionality equivalent to the highest 22 3056782v1 quality broadcast and commercial cable/satellite Channels carried by the Grantee on its Cable System. (i) Grantee shall carry the remaining public and educational Channels (PE Channels) on Channel 26 in its Channel lineup as a means to provide ease of access by Subscribers to the group of PE Channels placed consecutively on Channel numbers significantly higher in the Channel lineup. This use of one (1) Channel to access the group of PE Channels required under this Franchise shall be referred to as a"Mosaic Channel." The Mosaic Channel shall display the group of PE Channels on a single Channel screen and serve as a navigation tool for Subscribers. The Mosaic Channel shall allow Subscribers to navigate directly from Channel 26 to any of the PE Channels requested in a single operation without any intermediate steps to a chosen PE Channel in the group. (ii) Grantee shall use Channel 26 as a Mosaic Channel to access the PE Channels required under this Franchise. The group of consecutive PE channels residing at higher Channel numbers will retain Channel names and identity for marketing purposes,unless approved by the City. Grantee shall not include any other programming or Channels on the Commission's PE Mosaic Channel unless the City provides advance written consent. (iii) When using the Mosaic Channel, Subscribers shall be directed to the requested PE Channel in an HD format if appropriate to the Subscriber's level of service; otherwise, the Subscriber shall be directed to the SD PE Channel. The Mosaic Channel mechanism shall allow Subscribers to navigate directly from Channel 26 to the requested Commission Access Channels which shall be located on Channel numbers 8110 (educational access) and 8111 (public access). (iv) Grantee shall consult with the City(or City's designee)to determine the PE Channel information displayed on the Mosaic Channel. However, the information shall have video and audio signal strength, signal quality, and functionality equivalent to the highest quality broadcast and commercial cable/satellite channels carried by the Grantee on its Cable System in a Mosaic format. (v) The Mosaic Channel assigned for use by the City shall be used to navigate to the group of City PE Channels and will be placed near other PEG Mosaic Channels (vi) If through technology changes or innovation in the future, the Grantee discontinues the use of Mosaic presentations, then Grantee shall provide the PE Channels to Subscribers at equivalent visual and audio quality and equivalent functionality as Grantee delivers the highest quality broadcast stations and highest quality commercial cable/satellite channels on its Cable System with no degradation. 23 3056782v1 (b) The Grantee shall not charge for use of the PEG Access Channels, equipment, facilities or services. (c) In no event shall any Access Channel reallocations be made prior to ninety (90) Days written notice to the City by Grantee, except for circumstances beyond Grantee's reasonable control. The Access Channels will be located within reasonable proximity to other commercial video or broadcast Channels, excluding pay-per-view programming offered by Grantee in the City. (d) Grantee agrees not to encrypt the Access Channels differently than other commercial Channels available on the Cable System. (e) In conjunction with any occurrence of any Access Channel(s)relocation, as may be permitted by this Franchise, Grantee shall provide a minimum of Nine Thousand Dollars ($9,000) of in-kind air time per event on advertiser supported Channels (e.g. USA, TNT, TBS, Discovery Channel, or other comparable Channels) for the purpose of airing City's, or its designees',pre-produced thirty(30) second announcement explaining the change in location, or if Grantee does not have air time capabilities a mutually agreed equivalent shall be provided. 7.6 Navigation to Access Channels. Grantee agrees that if it utilizes a visual interface under its control on its Cable System for all Channels, the Access Channels shall be treated in a non-discriminatory fashion consistent with Applicable Laws so that Subscribers will have ready access to Access Channels. This shall not be construed to require Grantee to pay any third party fees that may result from this obligation. 7.7 Ownership of Access Channels. Grantee does not relinquish its ownership of or ultimate right of control over a Channel by designating it for PEG use. A PEG access user— whether an individual, educational or governmental user—acquires no property or other interest by virtue of the use of a Channel position so designated. Grantee shall not exercise editorial control over any public, educational, or governmental use of a Channel position, except Grantee may refuse to transmit any public access program or portion of a public access program that contains obscenity, indecency, or nudity in violation of Applicable Law. 7.8 Noncommercial Use of PEG. Permitted noncommercial uses of the Access Channels shall include by way of example and not limitation: (1) the identification of financial supporters similar to what is provided on public broadcasting stations; or(2)the solicitation of financial support for the provision of PEG programming by the City or third party users for charitable, educational or governmental purposes; or(3)programming offered by accredited, non-profit, educational institutions which may, for example, offer telecourses over a Access Channel. 7.9 Dedicated Fiber Return Lines. (a) Grantee shall provide and maintain, free of charge with no transport costs or other fees or costs imposed, a direct fiber connection and necessary equipment to 24 3056782v1 transmit PEG programming from the City Hall control room racks to the Grantee headend("PEG Origination Connection"). (b) In addition to the PEG Origination Connection, the Grantee shall, free of charge, construct a direct connection and necessary equipment to the programming origination site located at Edina City Hall where PEG programming is originated by the Commission. (c) Grantee shall at all times provide and maintain, free of charge, a drop to the Cable System, required Set-Top Box and free Basic Cable Service and Expanded Basic Service to the City Hall and the location from which PEG programming is originated(currently the playback facility at the Edina City Hall), to allow these facilities to view(live)the downstream PEG programming Channels on Grantee's Cable System so they can monitor the PEG signals and make certain that PEG programming is being properly received (picture and sound)by Subscribers. 7.10 Interconnection. To the extent technically feasible and permitted under Applicable Laws, Grantee will allow necessary interconnection with any newly constructed City and school fiber for noncommercial programming to be promoted and administered by the City as allowed under Applicable Laws and at no additional cost to the City or schools. This may be accomplished through a patch panel or other similar facility and each party will be responsible for the fiber on their respective sides of the demarcation point. Grantee reserves its right to review on a case-by-case basis the technical feasibility of the proposed interconnection. Based on this review Grantee may condition the interconnection on the reasonable reimbursement of Grantee's incremental costs, with no markup for profit, to recoup Grantee's construction costs only. In no event will Grantee impose any type of recurring fee for said interconnection. 7.11 Ancillary Equipment. Any ancillary equipment operated by Grantee for the benefit of PEG Access Channels on Grantee's fiber paths or Cable System, whether referred to switchers, routers or other equipment, will be maintained by Grantee, at no cost to the City or schools for the life of the Franchise. Grantee is responsible for any ancillary equipment on its side of the demarcation point and the City or school is responsible for all other production/playback equipment. 7.12 Future Fiber Return Lines for PEG. At such time that the City determines: (a) that the City desires the capacity to allow Subscribers in the City to receive PEG programming(video or character generated) which may originate from schools, City facilities, other government facilities or other designated facilities (other than those indicated in paragraph 10); or (b) that the City desires to establish or change a location from which PEG programming is originated; or (c) that the City desires to upgrade the Connection to Grantee from an existing signal point of origination, 25 3056782v1 the City will give Grantee written notice detailing the point of origination and the capability sought by the City. Grantee agrees to submit a cost estimate to implement the City's plan within a reasonable period of time but not later than September 1st in the year preceding the request for any costs exceeding Twenty-five Thousand and No/100 Dollars ($25,000). The cost estimate will be on a time and materials basis with no additional markup. After an agreement to reimburse Grantee for Grantee's out of pocket time and material costs, Grantee will implement any necessary Cable System changes within a reasonable period of time. Nothing herein prevents the City, or a private contractor retained by the City, from constructing said return fiber. 7.13 Access Channel Carriage. (a) Any and all costs associated with any modification of the Access Channels or signals after the Access Channels/signals leave the City's designated playback facilities, or any designated playback center authorized by the City shall be borne entirely by Grantee. Grantee shall not cause any programming to override PEG programming on any Access Channel, except by oral or written permission from the City, with the exception of emergency alert signals. (b) The City may request and Grantee shall provide an additional Access Channel when the cumulative time on all the existing Access Channels combined meets the following standard: whenever one of the Access Channels in use during eighty percent (80%) of the weekdays, Monday through Friday, for eighty percent(80%) of the time during a consecutive three (3)hour period for six (6) weeks running, and there is a demand for use of an additional Channel for the same purpose, the Grantee has six (6) months in which to provide a new, Access Channel for the same purpose; provided that, the provision of the additional Channel or Channels does not require the Cable System to install Converters. (c) The VHF spectrum shall be used for one (1) of the public, educational, or governmental specially designated Access Channels. (d) Subject to the terms of this Franchise, the City or its designee shall be responsible for developing, implementing, interpreting and enforcing rules for PEG Access Channel use. (e) The Grantee shall monitor the Access Channels for technical quality to ensure that they meet FCC technical standards including those applicable to the carriage of Access Channels,provided however, that the Grantee is not responsible for the production quality of PEG programming productions. The City, or its designee, shall be responsible for the production and quality of all PEG access programming. Grantee shall carry all components of the standard definition of Access Channel including, but not limited to, closed captioning, stereo audio and other elements associated with the programming. 26 3056782v1 7.14 Access Channel Support. (a) Upon the Effective Date of this Franchise, Grantee shall collect and remit to the City Sixty cents (60¢)per Subscriber per month in support of PEG capital ("PEG Fee"). (b) On August 1, 2017, the City, at its discretion, and upon ninety(90) Days advance written notice to Grantee, may require Grantee to increase the PEG Fee to Sixty- five cents (650)per Subscriber per month for the remaining term of the Franchise. The PEG Fee shall be used by City in its sole discretion to fund PEG access capital expenditures. In no event shall the PEG Fee be assessed in an amount different from that imposed upon the incumbent cable provider. In the event the incumbent cable provider agrees to a higher or lower PEG Fee, Grantee will increase or decrease its PEG Fee upon ninety(90) Days written notice from the City. (c) The PEG Fee is not intended to represent part of the Franchise Fee and is intended to fall within one (1) or more of the exceptions in 47 U.S.C. § 542. The PEG Fee may be categorized, itemized, and passed through to Subscribers as permissible, in accordance with 47 U.S.C. §542 or other Applicable Laws. Grantee shall pay the PEG Fee to the City quarterly at the same time as the payment of Franchise Fees under Section 16.1 of the Franchise. Grantee agrees that it will not offset or reduce its payment of past, present or future Franchise Fees required as a result of its obligation to remit the PEG Fee. (d) Any PEG Fee amounts owing pursuant to this Franchise which remain unpaid more than twenty-five (25) Days after the date the payment is due shall be delinquent and shall thereafter accrue interest at twelve percent(12%)per annum or the prime lending rate published by the Wall Street Journal on the Day the payment was due plus two percent(2%), whichever is greater. 7.15 PEG Technical Quality. (a) Grantee shall not be required to carry a PEG Access Channel in a higher quality format than that of the Channel Signal delivered to Grantee, but Grantee shall not implement a change in the method of delivery of Access Channels that results in a material degradation of signal quality or impairment of viewer reception of Access Channels,provided that this requirement shall not prohibit Grantee from implementing new technologies also utilized for commercial Channels carried on its Cable System. Grantee shall meet FCC signal quality standards when offering Access Channels on its Cable System and shall continue to comply with closed captioning pass-through requirements. There shall be no significant deterioration in an Access Channels signal from the point of origination upstream to the point of reception downstream on the Cable System. (b) Within twenty-four(24) hours of a written request from City to the Grantee identifying a technical problem with a Access Channel and requesting assistance, Grantee will provide technical assistance or diagnostic services to determine whether or 27 3056782v1 not a problem with a PEG signal is the result of matters for which Grantee is responsible and if so, Grantee will take prompt corrective action. If the problem persists and there is a dispute about the cause, then the parties shall meet with engineering representation from Grantee and the City in order to determine the course of action to remedy the problem. 7.16 Access Channel Promotion. Grantee shall allow the City to print and mail a post card for promoting a designated entity's service or generally promoting community programming to households in the City subscribing to Grantee's Cable Service at a cost to the City not to exceed Grantee's out of pocket cost, no less frequently than twice per year, or at such time as a Access Channel is moved or relocated,upon the written request of the City. The post card shall be designed by the City and shall conform to the Grantee's standards and policies for size and weight. Any post card denigrating the Grantee, its service or its programming is not permitted. The City agrees to pay Grantee in advance for the actual cost of such post card. 7.17 Change in Technology. 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, Grantee shall, at its own expense and free of charge to 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. 7.18 Relocation of Grantee's Headend. In the event Grantee relocates its headend, Grantee will be responsible for replacing or restoring the existing dedicated fiber connections at Grantee's cost so that all the functions and capacity remain available, operate reliably and satisfy all applicable technical standards and related obligations of the Franchise free of charge to the City or its designated entities. 7.19 Regional Channel Six. Grantee shall make available Regional Channel Six as long as it is required to do so by the State of Minnesota. 7.20 Government Access Channel Functionality. Grantee agrees to provide the capability such that the City, from its City Hall, can switch its government Access Channel in the following ways: (a) Insert live Council meetings from City Hall; (b) Replay government access programming from City Hall; and (c) Transmit character generated programming. (d) Schedule for Grantee to replay City-provided tapes in pre-arranged time slot on the government Access Channel; and (e) Switch to other available programming where the City has legal authority. 28 3056782v1 7.21 Compliance with Minnesota Statutes Chapter 238. In addition to the requirements contained in this Section 7 of this Franchise, Grantee and City shall comply with the PEG requirements mandated by Minn. Stat. 238.084. SECTION 8 REGULATORY PROVISIONS. 8.1 Intent. The City shall have the right to administer and regulate activities under the Franchise up to the full extent permitted by Applicable Law. 8.2 Delegation of Authority to Regulate. The City reserves the right to delegate its regulatory authority wholly or in part to agents of the City, including, but not limited to, an agency which may be formed to regulate several franchises in the region in a manner consistent with Applicable Laws. This may include but shall not be limited to the Commission or other entity as City may determine in its sole discretion. Any existing delegation in place at the time of the grant of this Franchise shall remain intact unless expressly modified by City. 8.3 Areas of Administrative Authority. In addition to any other regulatory authority granted to the City by law or franchise, the City shall have administrative authority in the following areas: (a) Administering and enforcing the provisions of this Franchise, including the adoption of administrative rules and regulations to carry out this responsibility. (b) Coordinating the operation of Access Channels. (c) Formulating and recommending long-range cable communications policy for the Franchise Area. (d) Disbursing and utilizing Franchise revenues paid to the City. (e) Administering the regulation of rates, to the extent permitted by Applicable Law. (f) All other regulatory authority permitted under Applicable Law. The City or its designee shall have continuing regulatory jurisdiction and supervision over the System and the Grantee's operations under the Franchise to the extent allowed by Applicable Law. 8.4 Regulation of Rates and Charges. (a) Right to Regulate. The City reserves the right to regulate rates or charges for any Cable Service within the limits of Applicable Law, to enforce rate regulations prescribed by the FCC, and to establish procedures for said regulation or enforcement. 29 3056782v1 (b) Notice of Change in Rates and Charges. Throughout the term of this Franchise, Grantee shall give the City and all Subscribers within the City at least thirty (30) Days' notice of any intended modifications or additions to Subscriber rates or charges. Nothing in this Subsection shall be construed to prohibit the reduction or waiving of rates or charges in conjunction with promotional campaigns for the purpose of attracting Subscribers or users. (c) Rate Discrimination Prohibited. Within any category of Subscribers, Grantee shall not discriminate among Subscribers with regard to rates and charges made for any service based on considerations of race, color, creed, sex, marital or economic status, national origin, sexual preference, or(except as allowed by Applicable Law) neighborhood of residence, except as otherwise provided herein; and for purposes of setting rates and charges, no categorization of Subscribers shall be made by Grantee on the basis of those considerations. Nevertheless, Grantee shall be permitted to establish (1) discounted rates and charges for providing Cable Service to low-income, handicapped, or low-income elderly Subscribers, (2)promotional rates, and(3) bulk rate and package discount pricing. SECTION 9 BOND. 9.1 Performance Bond. Upon the Effective Date of this Franchise and at all times thereafter Grantee shall maintain with City a bond in the sum of One Hundred Thousand Dollars ($100,000.00) in such form and with such sureties as shall be acceptable to City, conditioned upon the faithful performance by Grantee of this Franchise and the acceptance hereof given by City and upon the further condition that in the event Grantee shall fail to comply with any law, ordinance or regulation, there shall be recoverable jointly and severally from the principal and surety of the bond, any damages or losses suffered by City as a result, including the full amount of any compensation, indemnification or cost of removal of any property of Grantee, including a reasonable allowance for attorneys' fees and costs (with interest at two percent(2%) in excess of the then prime rate), up to the full amount of the bond, and which bond shall further guarantee payment by Grantee of all claims and liens against City or any, public property, and taxes due to City, which arise by reason of the construction, operation, maintenance or use of the Cable System. The City shall provide Grantee reasonable advanced notice of not less than ten (10) Days prior to any draw by the City on the performance bond required under this Section 9. 9.2 Rights. The rights reserved by City with respect to the bond are in addition to all other rights the City may have under this Franchise or any other law. 9.3 Reduction of Bond Amount. City may, in its sole discretion, reduce the amount of the bond. SECTION 10 SECURITY FUND 10.1 Security Fund. If there is an uncured breach by Grantee of a material provision of this Franchise or a pattern of repeated violations of any provision(s) of this Franchise, then 30 3056782v1 Grantee shall,upon written request, establish and provide to the City, as security for the faithful performance by Grantee of all of the provisions of this Franchise, a letter of credit from a financial institution satisfactory to the City in the amount of Twenty Thousand and No/100 Dollars ($20,000.00). In no event shall Grantee fail to post a Twenty Thousand and No/100 Dollar($20,000.00) letter of credit within thirty(30) days receipt of a notice of franchise violation pursuant to this Section 10.1. Failure to post said letter of credit shall constitute a separate material violation of this Franchise,unless the breach is cured within such thirty(30) Day period or longer period allowed under the Franchise. The letter of credit shall serve as a common security fund for the faithful performance by Grantee of all the provisions of this Franchise and compliance with all orders,permits and directions of the City and the payment by Grantee of any claim, liens, costs, expenses and taxes due the City which arise by reason of the construction, operation or maintenance of the Cable System. Interest on this deposit shall be paid to Grantee by the bank on an annual basis. The security may be terminated by the Grantee upon the resolution of the alleged noncompliance. The obligation to establish the security fund required by this paragraph is unconditional. The fund must be established in those circumstances where Grantee disputes the allegation that it is not in compliance, and maintained for the duration of the dispute. If Grantee fails to establish the security fund as required, the City may take whatever action is appropriate to require the establishment of that fund and may recover its costs, reasonable attorneys' fees, and an additional penalty of Two Thousand Dollars ($2,000) in that action. 10.2 Withdrawal of Funds. Provision shall be made to permit the City to withdraw funds from the security fund. Grantee shall not use the security fund for other purposes and shall not assign,pledge or otherwise use this security fund as security for any purpose. 10.3 Restoration of Funds. Within ten(10) Days after notice to it that any amount has been withdrawn by the City from the security fund pursuant to 10.4 of this section, Grantee shall deposit a sum of money sufficient to restore such security fund to the required amount. 10.4 Liquidated Damages. In addition to recovery of any monies owed by Grantee to City or damages to City as a result of any acts or omissions by Grantee pursuant to the Franchise, City in its sole discretion may charge to and collect from the security fund the following liquidated damages: (a) For failure to provide data, documents, reports or information or to cooperate with City during an application process or System review, the liquidated damage shall be One Hundred Dollars ($100.00)per Day for each Day, or part thereof, such failure occurs or continues. (b) For failure to comply with any of the provisions of this Franchise for which a penalty is not otherwise specifically provided pursuant to this Paragraph 10.4, the liquidated damage shall be One Hundred Fifty Dollars ($150.00)per Day for each Day, or part thereof, such failure occurs or continues. (c) For failure to test, analyze and report on the performance of the System following a request by City, the liquidated damage shall be Two Hundred Fifty Dollars ($250.00)per Day for each Day, or part thereof, such failure occurs or continues. 31 3056782v1 (d) Forty-five Days following notice from City of a failure of Grantee to comply with construction, operation or maintenance standards, the liquidated damage shall be Two Hundred Dollars ($200.00)per Day for each Day, or part thereof, such failure occurs or continues. (e) For failure to provide the services Grantee has proposed, including but not limited to the implementation and the utilization of the Access Channels the liquidated damage shall be One Hundred Fifty($150.00)per Day for each Day, or part thereof, such failure occurs or continues. 10.5 Each Violation a Separate Violation. Each violation of any provision of this Franchise shall be considered a separate violation for which separate liquidated damages can be imposed. 10.6 Maximum 120 Days. Any liquidated damages for any given violation shall be imposed upon Grantee for a maximum of one hundred twenty(120) Days. If after that amount of time Grantee has not cured or commenced to cure the alleged breach to the satisfaction of the City, the City may pursue all other remedies. 10.7 Withdrawal of Funds to Pay Taxes. If Grantee fails to pay to the City any taxes due and unpaid; or fails to repay to the City, any damages, costs or expenses which the City shall be compelled to pay by reason of any act or default of the Grantee in connection with this Franchise; or fails, after thirty(30) Days notice of such failure by the City to comply with any provision of the Franchise which the City reasonably determines can be remedied by an expenditure of the security, the City may then withdraw such funds from the security fund. Payments are not Franchise Fees as defined in Section 16 of this Franchise. 10.8 Procedure for Draw on Security Fund. Whenever the City finds that Grantee has allegedly violated one (1) or more terms, conditions or provisions of this Franchise, a written notice shall be given to Grantee. The written notice shall describe in reasonable detail the alleged violation so as to afford Grantee an opportunity to remedy the violation. Grantee shall have thirty (30) Days subsequent to receipt of the notice in which to correct the violation before the City may require Grantee to make payment of damages, and further to enforce payment of damages through the security fund. Grantee may, within ten (10) Days of receipt of notice, notify the City that there is a dispute as to whether a violation or failure has, in fact, occurred. Such notice by Grantee shall specify with particularity the matters disputed by Grantee and shall stay the running of the above-described time. (a) City shall hear Grantee's dispute at the next regularly scheduled or specially scheduled Council meeting. Grantee shall have the right to speak and introduce evidence. The City shall determine if Grantee has committed a violation and shall make written findings of fact relative to its determination. If a violation is found, Grantee may petition for reconsideration. (b) If after hearing the dispute, the claim is upheld by the City, then Grantee shall have thirty(30) Days within which to remedy the violation before the City may require payment of all liquidated damages due it. 32 3056782v1 10.9 Time for Correction of Violation. The time for Grantee to correct any alleged violation may be extended by the City if the necessary action to collect the alleged violation is of such a nature or character as to require more than thirty(30) Days within which to perform provided Grantee commences corrective action within fifteen(15) Days and thereafter uses reasonable diligence, as determined by the City, to correct the violation. 10.10 Grantee's Right to Pay Prior to Security Fund Draw. Grantee shall have the opportunity to make prompt payment of any assessed liquidated damages and if Grantee fails to promptly remit payment to the City, the City may resort to a draw from the security fund in accordance with the terms of this Section 10 of the Franchise. 10.11 Failure to so Replenish Security Fund. If any security fund is not so replaced, City may draw on said security fund for the whole amount thereof and hold the proceeds, without interest, and use the proceeds to pay costs incurred by City in performing and paying for any or all of the obligations, duties and responsibilities of Grantee under this Franchise that are not performed or paid for by Grantee pursuant hereto, including attorneys' fees incurred by the City in so performing and paying. The failure to so replace any security fund may also, at the option of City,be deemed a default by Grantee under this Franchise. The drawing on the security fund by City, and use of the money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such default. 10.12 Collection of Funds Not Exclusive Remedy. The collection by City of any damages or monies from the security fund shall not affect any other right or remedy available to City, nor shall any act, or failure to act,by City pursuant to the security fund, be deemed a waiver of any right of City pursuant to this Franchise or otherwise. Notwithstanding this section, however, should the City elect to impose liquidated damages that remedy shall remain the City's exclusive remedy for the one hundred twenty(120) Day period set forth in Section 10.6. SECTION 11 DEFAULT 11.1 Basis for Default. City shall give written notice of default to Grantee if City, in its sole discretion, determines that Grantee has: (a) Violated any material provision of this Franchise or the acceptance hereto or any rule, order, regulation or determination of the City, state or federal government, not in conflict with this Franchise; (b) Attempted to evade any provision of this Franchise or the acceptance hereof; (c) Practiced any fraud or deceit upon City or Subscribers; or (d) Made a material misrepresentation of fact in the application for or negotiation of this Franchise. 33 3056782v1 11.2 Default Procedure. If Grantee fails to cure such default within thirty(30) Days after the giving of such notice (or if such default is of such a character as to require more than thirty(30) Days within which to cure the same, and Grantee fails to commence to cure the same within said thirty(30) Day period and thereafter fails to use reasonable diligence, in City's sole opinion, to cure such default as soon as possible), then, and in any event, such default shall be a substantial breach and City may elect to terminate the Franchise. The City may place the issue of revocation and termination of this Franchise before the governing body of City at a regular meeting. If City decides there is cause or reason to terminate, the following procedure shall be followed: (a) City shall provide Grantee with a written notice of the reason or cause for proposed termination and shall allow Grantee a minimum of thirty(30) Days subsequent to receipt of the notice in which to correct the default. (b) Grantee shall be provided with an opportunity to be heard at a public hearing prior to any decision to terminate this Franchise. (c) If, after notice is given and an opportunity to cure, at Grantee's option, a public hearing is held, and the City determines there was a violation, breach, failure, refusal or neglect, the City may declare by resolution the Franchise revoked and of no further force and effect unless there is compliance within such period as the City may fix, such period may not be less than thirty(30) Days provided no opportunity for compliance need be granted for fraud or misrepresentation. 11.3 Mediation. If the Grantee and City are unable to resolve a dispute through informal negotiations during the period of thirty(30) Days following the submission of the claim giving rise to the dispute by one (1)party to the other, then unless that claim has been waived as provided in the Franchise, such claim may be subject to mediation if jointly agreed upon by both parties. Unless the Grantee and City mutually agree otherwise, such mediation shall be in accordance with the rules of the American Arbitration Association currently in effect at the time of the mediation. A party seeking mediation shall file a request for mediation with the other party to the Franchise and with the American Arbitration Association. The request may be made simultaneously with the filing of a complaint, but, in such event, mediation shall proceed in advance of legal proceedings only if the other party agrees to participate in mediation. Mutually agreed upon Mediation shall stay other enforcement remedies of the parties for a period of ninety (90) days from the date of filing,unless stayed for a longer period by agreement of the Grantee and City. The Grantee and City shall each pay one-half of the mediator's fee and any filing fees. The mediation shall be held in the City unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as a settlement agreement in any court having jurisdiction thereof. Nothing herein shall serve to modify or on any way delay the franchise enforcement process set forth in Section 10 of this Franchise. 11.4 Failure to Enforce. Grantee shall not be relieved of any of its obligations to comply promptly with any provision of the Franchise by reason of any failure of the City to enforce prompt compliance, and City's failure to enforce shall not constitute a waiver of rights or acquiescence in Grantee's conduct. 34 3056782v1 11.5 Compliance with the Laws. (a) If any federal or state law or regulation shall require or permit City or Grantee to perform any service or act or shall prohibit City or Grantee from performing any service or act which may be in conflict with the terms of this Franchise, then as soon as possible following knowledge thereof, either party shall notify the other of the point in conflict believed to exist between such law or regulation. Grantee and City shall conform to state laws and rules regarding cable communications not later than one (1) year after they become effective,unless otherwise stated, and shall conform to federal laws and regulations regarding cable as they become effective. (b) If any term, condition or provision of this Franchise or the application thereof to any Person or circumstance shall, to any extent, be held to be invalid or unenforceable, the remainder hereof and the application of such term, condition or provision to Persons or circumstances other than those as to whom it shall be held invalid or unenforceable shall not be affected thereby, and this Franchise and all the terms, provisions and conditions hereof shall, in all other respects, continue to be effective and complied with provided the loss of the invalid or unenforceable clause does not substantially alter the agreement between the parties. In the event such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that the provision which had been held invalid or modified is no longer in conflict with the law, rules and regulations then in effect, said provision shall thereupon return to full force and effect and shall thereafter be binding on Grantee and City. SECTION 12 FORECLOSURE AND RECEIVERSHIP 12.1 Foreclosure. Upon the foreclosure or other judicial sale of the Cable System, Grantee shall notify the City of such fact and such notification shall be treated as a notification that a change in control of Grantee has taken place, and the provisions of this Franchise governing the consent to transfer or change in ownership shall apply without regard to how such transfer or change in ownership occurred. 12.2 Receivership. The City shall have the right to cancel this Franchise subject to any applicable provisions of state law, including the Bankruptcy Act, one hundred twenty(120) Days after the appointment of a receiver or trustee to take over and conduct the business of Grantee, whether in receivership, reorganization,bankruptcy or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty(120) Days, or unless: (a) Within one hundred twenty(120) Days after his election or appointment, such receiver or trustee shall have fully complied with all the provisions of this Franchise and remedied all defaults thereunder; and, (b) Such receiver or trustee, within said one hundred twenty(120) Days, shall have executed an agreement, duly approved by the Court having jurisdiction in the 35 3056782v1 premises, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this Franchise. SECTION 13 REPORTING REQUIREMENTS 13.1 Quarterly Reports. Within forty-five (45) calendar days after the end of each calendar quarter, Grantee shall submit to the City along with its Franchise Fee payment a report showing the basis for computation of such fees prepared by an officer, or designee of Grantee showing the basis for the computation of the Franchise Fees paid during that period in a form and substance substantially equivalent to Exhibit B attached hereto. This report shall separately indicate revenues received by Grantee within the City including,but not limited to such items as listed in the definition of"Gross Revenues" at Section 1 of this Franchise. 13.2 Monitoring and Compliance Reports. Upon request,but no more than once a year, Grantee shall provide a written report of any and all applicable FCC technical performance tests for the residential network required in FCC Rules and Regulations as now or hereinafter constituted. In addition, Grantee shall provide City with copies of reports of the semi-annual test and compliance procedures applicable to Grantee and established by this Franchise no later than thirty(30) Days after the completion of each series of tests. 13.3 Reports. Upon request of the City and in no event later than thirty(30) Days from the date of receipt of such request, Grantee shall, free of charge,prepare and furnish to the City, at the times and in the form prescribed that Grantee is technically capable of producing, such additional reports with respect to its operation, affairs, transactions, or property, as may be reasonably necessary to ensure compliance with the terms of this Franchise. Grantee and City may in good faith agree upon taking into consideration Grantee's need for the continuing confidentiality as prescribed herein. Neither City nor Grantee shall unreasonably demand or withhold information requested pursuant with the terms of this Franchise. 13.4 Communications with Regulatory Agencies. (a) Upon written request, Grantee shall submit to City copies of any pleading, applications, notifications, communications and documents of any kind, submitted by Grantee or its Affiliates to any federal, State or local courts, regulatory agencies and other government bodies if such documents directly relate to the operations of Grantee `s Cable System within the Franchise Area. Grantee shall submit such documents to City no later than thirty(30) Days after receipt of City's request. Grantee shall not claim confidential, privileged or proprietary rights to such documents unless under federal, State, or local law such documents have been determined to be confidential by a court of competent jurisdiction, or a federal or State agency. With respect to all other reports, documents and notifications provided to any federal, State or local regulatory agency as a routine matter in the due course of operating Grantee `s Cable System within the Franchise Area, Grantee shall make such documents available to City upon City's written request. (b) In addition, Grantee and its Affiliates shall within ten (10) Days of any communication to or from any judicial or regulatory agency regarding any alleged or 36 3056782v1 actual violation of this Franchise, City regulation or other requirement relating to the System,use its best efforts to provide the City a copy of the communication, whether specifically requested by the City to do so or not. SECTION 14 CUSTOMER SERVICE POLICIES 14.1 Response to Customers and Cooperation with City. Grantee shall promptly respond to all requests for service, repair, installation and information from Subscribers. Grantee acknowledges the City's interest in the prompt resolution of all cable complaints and shall work in close cooperation with the City to resolve complaints. 14.2 Definition of"Complaint." For the purposes of Section 14, with the exception of Subsection 14.5, a"complaint" shall mean any communication to Grantee or to the City by a Subscriber or a Person who has requested Cable Service; a Person expressing dissatisfaction with any service,performance, or lack thereof, by Grantee under the obligations of this Franchise. 14.3 Customer Service Agreement and Written Information. Grantee shall provide to Subscribers a comprehensive service agreement and information in writing for use in establishing Subscriber service. Written information shall, at a minimum, contain the following information: (a) Services to be provided and rates for such services. (b) Billing procedures. (c) Service termination procedure. (d) Change in service notifications. (e) Liability specifications. (f) Set Top Boxes/Subscriber terminal equipment policy. (g) How complaints are handled including Grantee's procedure for investigation and resolution of Subscriber complaints. (h) The name, address, and phone number of the Person identified by the City as responsible for handling cable questions and complaints for the City. This information shall be prominently displayed and Grantee shall submit the information to the City for review and approval as to its content and placement on Subscriber billing statements. (i) A copy of the written information shall be provided to each Subscriber at the time of initial Connection and any subsequent reconnection. 37 3056782v1 14.4 Reporting Complaints. (a) The requirements of this Section 14.4 shall be subject to federal law regarding Subscriber privacy. Grantee shall maintain all Subscriber data available for City inspection. Subscriber data shall include the date, name, address, telephone number of Subscriber complaints as well as the subject of the complaint, date and type of action taken to resolve the complaint, any additional action taken by Grantee or the Subscriber. The data shall be maintained in a way that allows for simplified access of the data by the City. (b) Subject to federal law and upon reasonable request by the City, Grantee shall, within a reasonable amount of time,provide City with such Subscriber data for its review. 14.5 Customer Service Standards. The City hereby adopts the customer service standards set forth in Part 76, §76.309 of the FCC's rules and regulations, as amended. Grantee shall, upon request, which request shall include the reason for the request(such as complaints received or other reasonable evidence of concern), provide City with information which shall describe in detail Grantee's compliance with each and every term and provision of this Section 14.5. Grantee shall comply in all respects with the customer service requirements established by the FCC and those set forth herein. To the extent that this Franchise imposes requirements greater than those established by the FCC, Grantee reserves whatever rights it may have to recover the costs associated with compliance in any manner consistent with Applicable Law. 14.6 Local Office. During the term of the Franchise the Grantee shall comply with one of the following requirements: (a) Grantee shall maintain a convenient local customer service and bill payment location for matters such as receiving Subscriber payments, handling billing questions, equipment replacement and customer service information. Grantee shall comply with the standards and requirements for customer service set forth below during the term of this Franchise. (b) Grantee shall maintain convenient local Subscriber service and bill payment locations for the purpose of receiving Subscriber payments or equipment returns. Unless otherwise requested by the Subscriber, Grantee shall deliver replacement equipment directly to the Subscriber at no cost to the Subscriber. The Grantee shall maintain a business office or offices for the purpose of receiving and resolving all complaints regarding the quality of service, equipment malfunctions, billings disputes and similar matters. The office must be reachable by a local, toll-free telephone call, and Grantee shall provide the City with the name, address and telephone number of an office that will act as the Grantee's agent to receive complaints, regarding quality of service, equipment malfunctions, billings, and similar matters. At a minimum Grantee shall also provide the following: (i) Subscribers can remit payments at multiple third party commercial locations within the City(such as grocery stores or the Western Union). 38 3056782v1 (ii) Grantee will provide a service technician to any Qualified Living Unit in the City, free of charge to the Subscriber, where necessary to install, replace or troubleshoot equipment issues. (iii) Subscribers shall be able to return and receive equipment, free of charge, via national overnight courier service (such as Fed Ex or UPS) if a service technician is not required to visit the Subscriber's Qualified Living Unit. (iv) In the event Grantee provides Cable Service to a minimum of thirty percent(30%) of the total number of Cable Service Subscribers in the City served by cable operators franchised by the City, the Grantee shall then be required to also comply with the requirements of Section 14.6 (a) above. 14.7 Cable System office hours and telephone availability. (a) Grantee will maintain a local, toll-free or collect call telephone access line which will be available to its Subscribers twenty-four(24)hours a Day, seven(7) Days a week. (i) Trained Grantee representatives will be available to respond to customer telephone inquiries during Normal Business Hours. (ii) After Normal Business Hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after Normal Business Hours must be responded to by a trained Grantee representative on the next business Day. (b) 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 percent(90%) of the time under Normal Operating Conditions, measured on a quarterly basis. (c) Grantee shall not be required to acquire equipment or perform surveys to measure compliance with the telephone answering standards above unless an historical record of complaints indicates a clear failure to comply. (d) Under Normal Operating Conditions, the customer will receive a busy signal less than three percent(3%) of the time. (e) Customer service center and bill payment locations will be open at least during Normal Business Hours and will be conveniently located. 14.8 Installations, Outages and Service Calls. Under Normal Operating Conditions, each of the following standards will be met no less than ninety-five percent (95%) of the time measured on a quarterly basis: 39 3056782v1 (a) Standard Installations will be performed within seven (7)business days after an order has been placed. "Standard" Installations are those to a Qualified Living Unit. (b) Excluding conditions beyond the control of Grantee, Grantee will begin working on"Service Interruptions"promptly and in no event later than twenty-four(24) hours after the interruption becomes known. Grantee must begin actions to correct other Service problems the next business Day after notification of the Service problem. (c) The "appointment window" alternatives for Installations, Service calls, and other Installation activities will be either a specific time or, at maximum, a four(4) hour time block during Normal Business Hours. (Grantee may schedule Service calls and other Installation activities outside of Normal Business Hours for the express convenience of the customer.) (d) Grantee may not cancel an appointment with a customer after the close of business on the business Day prior to the scheduled appointment. (e) If Grantee's representative is running late for an appointment with a customer and will not be able to keep the appointment as scheduled, the customer will be contacted. The appointment will be rescheduled, as necessary, at a time which is convenient for the customer. 14.9 Communications between Grantee and Subscribers. (a) Refunds. Refund checks will be issued promptly, but no later than either: (i) The customer's next billing cycle following resolution of the request or thirty(30) Days, whichever is earlier, or (ii) The return of the equipment supplied by Grantee if Cable Service is terminated. (b) Credits. Credits for Cable Service will be issued no later than the customer's next billing cycle following the determination that a credit is warranted. 14.10 Billing. (a) Consistent with 47 C.F.R. § 76.1619,bills will be clear, concise and understandable. Bills must be fully itemized, with itemizations including, but not limited to, Basic Cable Service and premium Cable Service charges and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. (b) In case of a billing dispute, Grantee must respond to a written complaint from a Subscriber within thirty(30) Days. 40 3056782v1 14.11 Subscriber Information. Grantee will provide written information on each of the following areas at the time of Installation of Service, at least annually to all Subscribers, and at any time upon request: (a) Products and Services offered; (b) Prices and options for programming services and conditions of subscription to programming and other services; (c) Installation and Service maintenance policies; (d) Instructions on how to use the Cable Service; (e) Channel positions of programming carried on the System; and (f) Billing and complaint procedures, including the address and telephone number of the City's cable office. Subscribers shall be advised of the procedures for resolution of complaints about the quality of the television signal delivered by Grantee, including the address of the responsible officer of the City. Subscribers will be notified of any changes in rates, programming services or Channel positions as soon as possible in writing. Notice must be given to Subscribers a minimum of thirty(30) Days in advance of such changes if the change is within the control of Grantee. In addition, Grantee shall notify Subscribers thirty(30) Days in advance of any significant changes in the information required by this Section 14.11. 14.12 Notice or Rate Programming Change. In addition to the requirement of this Section 14.12 regarding advance notification to Subscribers of any changes in rates, programming services or Channel positions, Grantee shall give thirty(30) Days written notice to both Subscribers and the City before implementing any rate or Service change. If required by Applicable Law, such notice shall state the precise amount of any rate change and briefly explain in readily understandable fashion the cause of the rate change (e.g., inflation, change in external costs or the addition/deletion of Channels). When the change involves the addition or deletion of Channels, each Channel added or deleted must be separately identified. For purposes of the carriage of digital broadcast signals, Grantee need only identify for Subscribers, the television signal added and not whether that signal may be multiplexed during certain dayparts. 14.13 Subscriber Contracts. Grantee shall,upon written request, provide the City with any standard form residential Subscriber contract utilized by Grantee. If no such written contract exists, Grantee shall file with the City a document completely and concisely stating the length and terms of the Subscriber contract offered to customers. The length and terms of any standard form Subscriber contract(s) shall be available for public inspection during Normal Business Hours. A list of Grantee's current Subscriber rates and charges for Cable Service shall be maintained on file with City and shall be available for public inspection. 14.14 Refund Policy. If a Subscriber's Cable Service is interrupted or discontinued, without cause, for twenty-four(24) or more consecutive hours, Grantee shall, upon request by 41 3056782v1 the Subscriber, credit such Subscriber pro rata for such interruption. For this purpose, every month will be assumed to have thirty(30) Days. 14.15 Late Fees. Grantee shall comply with all applicable state and federal laws with respect to any assessment, charge, cost, fee or sum, however characterized, that Grantee imposes upon a Subscriber for late payment of a bill. The City reserves the right to enforce Grantee's compliance with all Applicable Laws to the maximum extent legally permissible. 14.16 Disputes. All Subscribers and members of the general public may direct complaints, regarding Grantee's Service or performance to the chief administrative officer of the City or the chief administrative officer's designee, which may be a board or Commission of the City. 14.17 Customer Bills. Customer bills shall be designed in such a way as to present the information contained therein clearly and comprehensibly to Customers, and in a way that(A) is not misleading and(B) does not omit material information. Notwithstanding anything to the contrary in Section 14.10, above, Grantee may, in its sole discretion, consolidate costs on Customer bills as may otherwise be permitted by Section 622(c) of the Cable Act(47 U.S.C. §542(c)). 14.18 Failure to Resolve Complaints. Grantee must investigate and act upon any service complaint promptly and in no event later than twenty-four(24)hours after the problem becomes known. Grantee must address, and if feasible, resolve service complaints within three (3) calendar days. 14.19 Maintain a Complaint Phone Line. Grantee shall maintain a local or toll-free telephone Subscriber complaint line, available to its Subscribers twenty-four(24)hours per Day, seven(7) Days a week. 14.20 Notification of Complaint Procedure. Grantee shall have printed clearly and prominently on each Subscriber bill and in the customer service agreement provided for in Section 14.3, the twenty-four(24)hour Grantee phone number for Subscriber complaints. Additionally, Grantee shall provide information to customers concerning the procedures to follow when they are unsatisfied with measures taken by Grantee to remedy their complaint. This information will include the phone number of the City office or Person designated to handle complaints. Additionally, where possible Grantee shall state that complaints should be made to Grantee prior to contacting the City. 14.21 Subscriber Privacy. (a) To the extent required by Minn. Stat. §238.084 Subd. 1(s) Grantee shall comply with the following: No signals including signals of a Class IV Channel may be transmitted from a Subscriber terminal for purposes of monitoring individual viewing patterns or practices without the express written permission of the Subscriber. The request for permission must be contained in a separate document with a prominent statement that the Subscriber is authorizing the permission in full knowledge of its provisions. Such written permission shall be for a limited period of time not to exceed 42 3056782v1 one (1) year which may be renewed at the option of the Subscriber. No penalty shall be invoked for a Subscriber's failure to provide or renew such permission. The permission shall be revocable at any time by the Subscriber without penalty of any kind whatsoever. (b) No information or data obtained by monitoring transmission of a signal from a Subscriber terminal, including but not limited to lists of the names and addresses of Subscribers or any lists that identify the viewing habits of Subscribers shall be sold or otherwise made available to any party other than to Grantee or its agents for Grantee's business use, and also to the Subscriber subject of that information, unless Grantee has received specific written permission from the Subscriber to make such data available. The request for permission must be contained in a separate document with a prominent statement that the Subscriber is authorizing the permission in full knowledge of its provisions. Such written permission shall be for a limited period of time not to exceed one (1) year which may be renewed at the option of the Subscriber. No penalty shall be invoked for a Subscriber's failure to provide or renew such permission. The permission shall be revocable at any time by the Subscriber without penalty of any kind whatsoever. (c) Written permission from the Subscriber shall not be required for the conducting of system wide or individually addressed electronic sweeps for the purpose of verifying System integrity or monitoring for the purpose of billing. Confidentiality of such information shall be subject to the provision set forth in subparagraph (b) of this section. 14.22 Grantee Identification. Grantee shall provide all customer service technicians and all other Grantee employees entering private property with appropriate picture identification so that Grantee employees may be easily identified by the property owners and Subscribers. SECTION 15 SUBSCRIBER PRACTICES 15.1 Subscriber Rates. There shall be no charge for disconnection of any installation or outlet. If any Subscriber fails to pay a properly due monthly Subscriber fee, or any other properly due fee or charge, Grantee may disconnect the Subscriber's service outlet, provided, however, that such disconnection shall not be effected until after the later of: (i) forty-five (45) Days after the original due date of said delinquent fee or charge; or(ii) ten(10) Days after delivery to Subscriber of written notice of the intent to disconnect. If a Subscriber pays before expiration of the later of(i) or(ii), Grantee shall not disconnect. After disconnection, upon payment in full of the delinquent fee or charge and the payment of a reconnection charge, Grantee shall promptly reinstate the Subscriber's Cable Service. 15.2 Refunds to Subscribers shall be made or determined in the following manner: (a) If Grantee fails, upon request by a Subscriber, to provide any service then being offered, Grantee shall promptly refund all deposits or advance charges paid for the service in question by said Subscriber. This provision does not alter Grantee's responsibility to Subscribers under any separate contractual agreement or relieve Grantee of any other liability. 43 3056782v1 (b) If any Subscriber terminates any monthly service because of failure of Grantee to render the service in accordance with this Franchise, Grantee shall refund to such Subscriber the proportionate share of the charges paid by the Subscriber for the services not received. This provision does not relieve Grantee of liability established in other provisions of this Franchise. (c) If any Subscriber terminates any monthly service prior to the end of a prepaid period, a proportionate amount of any prepaid Subscriber service fee,using the number of days as a basis, shall be refunded to the Subscriber by Grantee. SECTION 16 COMPENSATION AND FINANCIAL PROVISIONS. 16.1 Franchise Fees. During the term of the Franchise, Grantee shall pay to the City a Franchise Fee of five percent (5%) of Gross Revenues. If any such law, regulation or valid rule alters the five percent(5%) Franchise Fee ceiling enacted by the Cable Act, then the City shall have the authority to (but shall not be required to) increase the Franchise Fee accordingly, provided such increase is for purposes not inconsistent with Applicable Law. In the event Grantee bundles or combines Cable Services (which are subject to the Franchise Fee)with non- Cable Services (which are not subject to the Franchise Fee) so that Subscribers pay a single fee for more than one (1) class of service resulting in a discount on Cable Services, Grantee agrees that for the purpose of calculation of the Franchise Fee, it shall allocate to Cable Service revenue no less than a pro rata share of the revenue received for the bundled or combined services. The pro rata share shall be computed on the basis of the published charge for each service in the bundled or combined classes of services when purchased separately. (a) Franchise Fees shall be paid quarterly not later than forty-five (45) Days following the end of a given quarter. In accordance with Section 16 of this Franchise, Grantee shall file with the City a Franchise Fee payment worksheet, attached as Exhibit B, signed by an authorized representative of Grantee, which identifies Gross Revenues earned by Grantee during the period for which payment is made. No acceptance of any payment shall be construed as an accord that the amount paid is in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any claim which the City may have for further or additional sums payable under the provisions of this section. (b) Neither current nor previously paid Franchise Fees shall be subtracted from the Gross Revenue amount upon which Franchise Fees are calculated and due for any period,unless otherwise required by Applicable Law. (c) Any Franchise Fees owing pursuant to this Franchise which remain unpaid more than forty-five (45) Days after the dates specified herein shall be delinquent and shall thereafter accrue interest at twelve percent(12%)per annum or two percent(2%) above prime lending rate as quoted by the Wall Street Journal, whichever is greater. (d) In no event shall the Grantee be required to pay a Franchise Fee percentage in excess of that paid by incumbent cable provider. 44 3056782v1 16.2 Auditing and Financial Records. Throughout the term of this Franchise, the Grantee agrees that the City,upon reasonable prior written notice of not less than twenty(20) Days to the Grantee, may review such of the Grantee's books and records regarding the operation of the Cable System and the provision of Cable Service in the Franchise Area which are reasonably necessary to monitor and enforce Grantee's compliance with the provisions of this Franchise. Grantee shall provide such requested information as soon as possible and in no event more than thirty(30) Days after the notice unless Grantee explains that it is not feasible to meet this timeline and provides a written explanation for the delay and an estimated reasonable date for when such information will be provided. All such documents pertaining to financial matters that may be the subject of an inspection by the City shall be retained by the Grantee for a minimum period of six (6) years,pursuant to Minnesota Statutes Section 541.05. The Grantee shall not deny the City access to any of the Grantee's records on the basis that the Grantee's records are under the control of any parent corporation, Affiliated entity or a third party. The City may request in writing copies of any such records or books that are reasonably necessary, and the Grantee shall provide such copies within thirty(30) Days of the receipt of such request. One (1) copy of all reports and records required under this or any other section shall be furnished to the City at the sole expense of the Grantee. If the requested books and records are too voluminous, or for security reasons cannot be copied or removed, then the Grantee may request, in writing within ten(10) Days of receipt of such request, that the City inspect them at the Grantee's local offices or at one of Grantee's offices more convenient to City or its duly authorized agent. If any books or records of the Grantee are not kept in such office and not made available in copies to the City upon written request as set forth above, and if the City determines that an examination of such records is necessary for the enforcement of this Franchise, then all reasonable travel expenses incurred in making such examination shall be paid by the Grantee. 16.3 Review of Record Keeping Methodology. Grantee agrees to meet with representative of the City upon request to review its methodology of record-keeping, financial reporting, computing Franchise Fee obligations, and other procedures the understanding of which the City deems necessary for understanding the meaning of reports and records related to the Franchise. 16.4 Audit of Records. The City or its authorized agent may at any time and at the City's own expense conduct an independent audit of the revenues of Grantee in order to verify the accuracy of Franchise Fees paid to the City. Grantee shall cooperate fully in the conduct of such audit and shall produce all necessary records related to the provision of Cable Services regardless of which corporate entity controls such records. In the event it is determined through such audit that Grantee has underpaid Franchise Fees in an amount of five percent (5%) or more than was due the City, then Grantee shall reimburse the City for the entire reasonable cost of the audit within thirty(30) days of the completion and acceptance of the audit by the City. 16.5 Records to be reviewed. The City agrees to request access to only those books and records, in exercising its rights under this section, which it deems reasonably necessary for the enforcement and administration of the Franchise. 45 3056782v1 16.6 Indemnification by Grantee. (a) Grantee shall, at its sole expense, fully indemnify, defend and hold harmless the City, and in their capacity as such, the officers and employees thereof, from and against any and all claims, suits, actions, liability and judgments for damage or otherwise except those arising wholly from negligence on the part of the City or its employees; for actual or alleged injury to persons or property, including loss of use of property due to an occurrence, whether or not such property is physically damaged or destroyed, in any way arising out of or through or alleged to arise out of or through the acts or omissions of Grantee or its officers, agents, employees, or contractors or to which Grantee's or its officers, agents, employees or contractors acts or omissions in any way contribute, and whether or not such acts or omissions were authorized or contemplated by this Franchise or Applicable Law; arising out of. or alleged to arise out of any claim for damages for Grantee's invasion of the right of privacy, defamation of any Person, firm or corporation, or the violation of infringement of any copyright, trademark, trade name, service mark or patent, or of any other right of any Person, firm or corporation; arising out of or alleged to arise out of Grantee's failure to comply with the provisions of any Applicable Law. Nothing herein shall be deemed to prevent the City, its officers, or its employees from participating in the defense of any litigation by their own counsel at such parties' expense. Such participation shall not under any circumstances relieve Grantee from its duty of defense against liability or of paying any judgment entered against the City, its officers, or its employees. (b) Grantee shall contemporaneously with this Franchise execute an Indemnity Agreement in a form acceptable to the City attached hereto as Exhibit C, 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 Law(s). 16.7 Grantee Insurance. Upon the Effective Date, Grantee shall, at its sole expense take out and maintain during the term of this Franchise public liability insurance with a company licensed to do business in the state of Minnesota with a rating by A.M. Best& Co. of not less than"A-"that shall protect the Grantee, City and its officials, officers, directors, employees and agents from claims which may arise from operations under this Franchise, whether such operations be by the Grantee, its officials, officers, directors, employees and agents or any subcontractors of Grantee. This liability insurance shall include, but shall not be limited to, protection against claims arising from bodily and personal injury and damage to property, resulting from Grantee's vehicles, products and operations. The amount of insurance for single limit coverage applying to bodily and personal injury and property damage shall not be less than Three Million Dollars ($3,000,000). The liability policy shall include: (a) The policy shall provide coverage on an "occurrence"basis. 46 3056782v1 (b) The policy shall cover personal injury as well as bodily injury. (c) The policy shall cover blanket contractual liability subject to the standard universal exclusions of contractual liability included in the carrier's standard endorsement as to bodily injuries,personal injuries and property damage. (d) Broad form property damage liability shall be afforded. (e) City shall be named as an additional insured on the policy. (f) An endorsement shall be provided which states that the coverage is primary insurance with respect to claims arising from Grantee's operations under this Franchise and that no other insurance maintained by the Grantor will be called upon to contribute to a loss under this coverage. (g) Standard form of cross-liability shall be afforded. (h) An endorsement stating that the policy shall not be canceled without thirty (30) Days notice of such cancellation given to City (i) City reserves the right to adjust the insurance limit coverage requirements of this Franchise no more than once every three (3) years. Any such adjustment by City will be no greater than the increase in the State of Minnesota Consumer Price Index (all consumers) for such three (3) year period. (j) Upon the Effective Date, Grantee shall submit to City a certificate documenting the required insurance, as well as any necessary properly executed endorsements. The certificate and documents evidencing insurance shall be in a form acceptable to City and shall provide satisfactory evidence that Grantee has complied with all insurance requirements. Renewal certificates shall be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such endorsements or certificates or other evidence of insurance, or to advise Grantee of any deficiencies in such documents and receipt thereof shall not relieve Grantee from, nor be deemed a waiver of, City's right to enforce the terms of Grantee's obligations hereunder. City reserves the right to examine any policy provided for under this paragraph or to require further documentation reasonably necessary to form an opinion regarding the adequacy of Grantee's insurance coverage. SECTION 17 MISCELLANEOUS PROVISIONS. 17.1 Posting and Publication. Grantee shall assume the cost of posting and publication of this Franchise as such posting and publication is required by law and such is payable upon Grantee's filing of acceptance of this Franchise. 17.2 Guarantee of Performance. Grantee agrees that it enters into this Franchise voluntarily in order to secure and in consideration of the grant from the City of a five (5) year 47 3056782v1 Franchise. Performance pursuant to the terms and conditions of this Franchise is guaranteed by Grantee. 17.3 Entire Agreement. This Franchise contains the entire agreement between the parties, supersedes all prior agreements or proposals except as specifically set forth herein, and cannot be changed orally but only by an instrument in writing executed by the parties. This Franchise is made pursuant to Minnesota Statutes Chapter 238 and is intended to comply with all requirements set forth therein. 17.4 Consent. Wherever the consent or approval of either Grantee or the City is specifically required in this agreement, such consent or approval shall not be unreasonably withheld. 17.5 Franchise Acceptance. No later than forty-five (45) Days following City Council approval of this Franchise, Grantee shall execute and return to the City three (3) original franchise agreements. The executed agreements shall be returned to the City accompanied by performance bonds, and evidence of insurance, all as provided in this Franchise. The City's "Notice of Intent to Consider an Application for a Franchise" ("Notice")provided, consistent with Minn. Stat. 238.081 subd. 8, that applicants would be required to reimburse the City for all necessary costs of processing a cable communications franchise. Grantee submitted an application fee with its application to the City. The Notice further provided that any unused portion of the application fee would be returned and any additional fees required to process the application and franchise, beyond the application fee, would be assessed to the successful applicant. The Grantee shall therefore submit to the City at the time of acceptance of this Franchise, a check made payable to the City of Eden Prairie, Minnesota for all additional fees and costs incurred by the City. Within thirty(30) days of City Council approval, the City shall provide Grantee with a letter specifying such additional costs following approval of this Franchise by the City Council. In the event Grantee fails to accept this Franchise, or fails to provide the required documents and payments, this Franchise shall be null and void. The Grantee agrees that despite the fact that its written acceptance may occur after the Effective Date, the obligations of this Franchise shall become effective on the Effective Date. 17.6 Amendment of Franchise. Grantee and City may agree, from time to time, to amend this Franchise. Such written amendments may be made subsequent to a review session pursuant to Section 2.7 or at any other time if City and Grantee agree that such an amendment will be in the public interest or if such an amendment is required due to changes in federal, state or local laws; provided, however, nothing herein shall restrict City's exercise of its police powers. 17.7 Notice. Any notification that requires a response or action from a party to this Franchise, within a specific time-frame or would trigger a timeline that would affect one or both parties' rights under this Franchise, shall be made in writing and shall be sufficiently given and served upon the other party by hand delivery, first class mail, registered or certified, return receipt requested, postage prepaid, or by reputable overnight courier service and addressed as follows: 48 3056782v1 To the City: City Manager, City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 Courtesy Copy to: Southwest Suburban Cable Commission c/o Moss &Barnett (BTG) 150 South Fifth Street, Suite 1200 Minneapolis, MN 55402 To the Grantee: CenturyLink Attn: Public Policy 1801 California Street, 10th Floor Denver, Colorado 80202 Courtesy Copy to: Qwest Broadband Services, Inc. Attn: Public Policy 200 South Fifth Street, 21st Floor Minneapolis, MN 55402 Recognizing the widespread usage and acceptance of electronic forms of communication, emails will be acceptable as formal notification related to the conduct of general business amongst the parties to this contract, including but not limited to programming and price adjustment communications. Such communication should be addressed and directed to the Person of record as specified above. 17.8 Force Majeure. In the event that either party is prevented or delayed in the performance of any of its obligations,under this Franchise by reason of acts of God, floods, fire, hurricanes, tornadoes, earthquakes, or other unavoidable casualties, insurrection, war, riot, vandalism, strikes, delays in receiving permits where it is not the fault of Grantee, public easements, sabotage, acts or omissions of the other party, or any other similar event beyond the reasonable control of that party, it shall have a reasonable time under the circumstances to perform such obligation under this Franchise, or to procure a substitute for such obligation to the reasonable satisfaction of the other party. 17.9 Work of Contractors and Subcontractors. Work by contractors and subcontractors are subject to the same restrictions, limitations and conditions as if the work were performed by Grantee. Grantee shall be responsible for all work performed by its contractors and subcontractors, and others performing work on its behalf as if the work were performed by it and shall ensure that all such work is performed in compliance with this Franchise, the City Code and other Applicable Law, and shall be jointly and severally liable for all damages and correcting all damage caused by them. It is Grantee's responsibility to ensure that contractors, subcontractors or other Persons performing work on Grantee's behalf are familiar with the requirements of this Franchise, the City Code and other Applicable Laws governing the work performed by them. 49 3056782v1 17.10 Abandonment of System. Grantee may not abandon the System or any portion thereof used exclusively for Cable Services, without having first given three (3) months written notice to City and conforming to the City Code, as well as the state right-of-way rules, Minn. Rules, Chapter 7819. To the extent required by Minn. Stat. §238.084 Subd. 1 (w), Grantee shall compensate City for damages resulting from the abandonment. 17.11 Removal After Abandonment. In the event of Grantee's abandonment of the System used exclusively for Cable Services, City shall have the right to require Grantee to conform to the City Code, as well as the state right-of-way rules, Minn. Rules, Chapter 7819. If Grantee has failed to commence removal of System, or such part thereof as was designated by City, within thirty(30) Days after written notice of City's demand for removal consistent with City Code and Minn. Rules, Ch. 7819, is given, or if Grantee has failed to complete such removal within twelve (12) months after written notice of City's demand for removal is given City shall have the right to apply funds secured by the performance bond toward removal and/or declare all right, title, and interest to the System to be in City with all rights of ownership including, but not limited to, the right to operate the System or transfer the System to another for operation by it. 17.12 Governing Law. This Franchise shall be deemed to be executed in the State of Minnesota, and shall be governed in all respects, including validity, interpretation and effect, and construed in accordance with, the laws of the State of Minnesota, as applicable to contracts entered into and performed entirely within the State. 17.13 Nonenforcement by City. Grantee shall not be relieved of its obligation to comply with any of the provisions of this Franchise by reason of any failure of the City or to enforce prompt compliance. 17.14 Captions. The paragraph captions and headings in this Franchise are for convenience and reference purposes only and shall not affect in any way the meaning of interpretation of this Franchise. 17.15 Calculation of Time. Where the performance or doing of any act, duty, matter, payment or thing is required hereunder and the period of time or duration for the performance is prescribed and fixed herein, the time shall be computed so as to exclude the first and include the last Day of the prescribed or fixed period or duration of time. When the last Day of the period falls on Saturday, Sunday or a legal holiday that Day shall be omitted from the computation and the next business Day shall be the last Day of the period. 17.16 Survival of Terms. Upon the termination or forfeiture of the Franchise, Grantee shall no longer have the right to occupy the Streets for the purpose of providing Cable Service. However, Grantee's obligations to the City(other than the obligation to provide service to Subscribers) shall survive according to their terms. 17.17 Competitive Equity. If any other Wireline MVPD enters into any agreement with the City to provide multi channel video programming or its equivalent to residents in the City, the City,upon written request of the Grantee, shall permit the Grantee to construct and/or operate its Cable System and provide multi channel video programming or its equivalent to Subscribers 50 3056782v1 in the City under the same agreement as applicable to the new MVPD. Within one hundred twenty(120) Days after the Grantee submits a written request to the City, the Grantee and the City shall enter into an agreement or other appropriate authorization (if necessary) containing the same terms and conditions as are applicable to the new Wireline MVPD. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the 18th day of January, 2016, and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the 2nd day of February, 2016. CITY OF EDEN PRAIRIE, ATTEST: MINNESOTA Kathleen Porta, City Clerk Nancy Tyra-Lukens, Mayor Published in the Eden Prairie News on the l ld'day of February, 2015. 51 3056782v1 ACCEPTED: This Franchise is accepted, and we agree to be bound by its terms and conditions. QWEST BROADBAND SERVICES, INC.,D/B/A CENTURYLINK Date: By: Its: SWORN TO BEFORE ME this day of , 201 . NOTARY PUBLIC 52 3056782v1 Exhibit A Free Cable Service to Public Buildings ANSWER POINT,PUBLIC SAFETY 8080 MITCHELL RD OFC CARNELIAN HOUSE,* 7525 CARNELIAN LN APT. CMCL CENTER,EDEN PRAIRIE FAMILY 8950 EDEN PRAIRIE RD CENTER,EDEN PRAIRIE SENIOR 8950 EDEN PRAIRIE RD CITY HALL,EDEN PRAIRIE 8080 MITCHELL RD OFC CITY OF,EDEN PRAIRIE 7801 MITCHELL RD COMMUNITY CENTER,EDEN PRAI 16700 VALLEY VIEW RD DISPATCH,EDEN PRAIRIE 8080 MITCHELL RD APT COPS FIRE STATION,EDEN PRAIRIE 11800 TECHNOLOGY DR POLICE,EDEN PRAIRIE 7900 MITCHELL RD PUBLIC WORKS,EDEN PRAIRIE 7845 MITCHELL RD SOCS CHATHAM WA,Y 6204 CHATHAM WAY LIBRARY,EDEN PRAIRIE 479 PRAIRIE CENTER DR DISTRICT,EDEN PRA SCHOOL 8100 SCHOOL RD APT FIBER ELEM SCHOOL,OAK POINT INTE 13400 STARING LAKE PKWY ELEM,CEDAR RIDGE 8905 BRAXTON DR ELEMENTARY,EDEN L 12000 ANDERSON LAKES PKWY ELEMENTARY,PRAIRIE VIEW 17255 PETERBORG RD HIGH SCHOOL, EDEN PRAIRIE 17185 VALLEY VIEW RD HIGH SCHOOL,FOREST 13708 HOLLY RD IMMERSION, SPANISH 8100 SCHOOL RD MIDDLE SCHOOL,CENTRAL 8025 SCHOOL RD TECH COLLEGE,HENNEPIN 13100 COLLEGEVIEW RD FIRE STATION #1,EDEN PRAIR 14800 SCENIC HEIGHTS RD FIRE STATION #4,EDEN PRAIR 17920 LINWOOD CT A-1 3056782vI Exhibit B Franchise Fee Payment Worksheet TRADE SECRET— CONFIDENTIAL Month/Year Month/Year Month/Year Total A la Carte Video Services Audio Services Basic Cable Service Installation Charge Bulk Revenue Expanded Basic Cable Service Pay Service Pay-per-view Guide Revenue Franchise Fee Revenue Advertising Revenue Home Shopping Revenue Digital Services Inside Wiring Other Revenue Equipment Rental Processing Fees PEG Fee FCC Fees Bad Debt Late Fees REVENUE Fee Calculated Fee Factor: 5% c-1 3056782v1 Exhibit C Indemnity Agreement INDEMNITY AGREEMENT made this day of , 201_, by and between Qwest Broadband Services, Inc., a Delaware Corporation, party of the first part, hereinafter called"CenturyLink," and the City of Eden Prairie, a Minnesota Municipal Corporation, party of the second part, hereinafter called"City." WITNESSETH: WHEREAS, the City of Eden Prairie has awarded to Qwest Broadband Services, Inc. a franchise for the operation of a cable communications system in the City of Eden Prairie; 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, CenturyLink 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, c-1 3056782v1 and City desires to hire counsel or 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 City 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 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: , 201_ By: Its: STATE OF LOUISIANA ) ) SS ) The foregoing instrument was acknowledged before me this day of 201_, by , the of Qwest Broadband Services, Inc., a Delaware Corporation, on behalf of the corporation. Notary Public Commission Expires CITY OF EDEN PRAIRIE,MINNESOTA By Its C-2 3056782v1 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2016- A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE NO. 3-2016 AND ORDERING THE PUBLICATION OF SAID SUMMARY WHEREAS, Ordinance No. 3-2016 was adopted and ordered published at a regular meeting of the City Council of the City of Eden Prairie held on the 2nd day of February, 2016. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, THAT THE CITY COUNCIL FINDS, DETERMINES, AND ORDERS AS FOLLOWS: A. Ordinance No. 3-2016 is lengthy. B. The text of summary of Ordinance No. 3-2016, attached hereto as Exhibit A, conforms to M.S. § 331A.01, Subd. 10, and is approved, and publication of the title and summary of the Ordinance will clearly inform the public of the intent and effect of the Ordinance. C. The title and summary shall be published once in the Eden Prairie News in a body type no smaller than brevier or eight-point type. D. A printed copy of the Ordinance shall be made available for inspection by any person, during regular office hours, at the office of the City Clerk, and a copy of the entire text of the Ordinance shall be posted in the City offices. E. Ordinance 3-2016 shall be recorded in the Ordinance Book, along with proof of publication, within twenty(20) days after said publication. ADOPTED by the City Council on February 2, 2016. Nancy Tyra-Lukens Mayor (Seal) ATTEST: Kathleen Porta, City Clerk EXHIBIT A CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA SUMMARY OF ORDINANCE 3-2016 AN ORDINANCE GRANTING A FRANCHISE TO QWEST BROADBAND SERVICES, INC.,D/B/A CENTURYLINK("CENTURYLINK") TO CONSTRUCT, OPERATE AND MAINTAIN A CABLE SYSTEM IN THE CITY OF EDEN PRAIRIE, MINNESOTA SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM AND THE PUBLIC RIGHTS-OF-WAY; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS HEREIN. On February 2, 2016, the City of Eden Prairie, Minnesota("City") adopted an Ordinance granting a Cable Television Franchise to CenturyLink. The Ordinance serves two purposes. First, it is intended to provide for and specify the means to attain the best possible cable service for the public by providing requirements for cable with respect to technical standards, customer service obligations, and related matters. Second, it grants a non-exclusive cable franchise to CenturyLink to operate, construct and maintain a cable system within the City and contains specific requirements for CenturyLink to do so. The Ordinance includes the following: 1)requires CenturyLink to have a bandwidth capable of providing the equivalent of a typical 750 MHz cable system; 2) imposes on CenturyLink a franchise fee of five percent(5%) of CenturyLink's annual gross revenues; 3) establishes a franchise term of five (5)years with the option to extend an additional 5 years; 4)provides a list of schools and public buildings entitled to receive complimentary cable service; 5)requires CenturyLink to dedicate channel capacity for public, educational and governmental programming and provides capital support of such channels; 6) mandates customer service standards regarding CenturyLink's provision of cable services; and 7) requires a performance bond and security fund to enforce CenturyLink's compliance with the Ordinance. Persons interested in reviewing a complete copy of the Ordinance may do so at the City Hall at 8080 Mitchell Road, Eden Prairie, MN 55344 during the hours of 9:00 a.m. and 4:00 p.m., Monday through Friday. Effective Date: This Ordinance shall take effect upon publication. Nancy Tyra- Lukens, Mayor ATTEST: Kathleen Porta, City Clerk PUBLISHED in the Eden Prairie News on February 11, 2016. CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA SUMMARY OF ORDINANCE 3-2016 AN ORDINANCE GRANTING A FRANCHISE TO QWEST BROADBAND SERVICES, INC.,D/B/A CENTURYLINK("CENTURYLINK") TO CONSTRUCT, OPERATE AND MAINTAIN A CABLE SYSTEM IN THE CITY OF EDEN PRAIRIE,MINNESOTA SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM AND THE PUBLIC RIGHTS-OF-WAY; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS HEREIN. On February 2, 2016, the City of Eden Prairie, Minnesota("City") adopted an Ordinance granting a Cable Television Franchise to CenturyLink. The Ordinance serves two purposes. First, it is intended to provide for and specify the means to attain the best possible cable service for the public by providing requirements for cable with respect to technical standards, customer service obligations, and related matters. Second, it grants a non-exclusive cable franchise to CenturyLink to operate, construct and maintain a cable system within the City and contains specific requirements for CenturyLink to do so. The Ordinance includes the following: 1) requires CenturyLink to have a bandwidth capable of providing the equivalent of a typical 750 MHz cable system; 2) imposes on CenturyLink a franchise fee of five percent(5%) of CenturyLink's annual gross revenues; 3) establishes a franchise term of five (5) years with the option to extend an additional 5 years; 4)provides a list of schools and public buildings entitled to receive complimentary cable service; 5) requires CenturyLink to dedicate channel capacity for public, educational and governmental programming and provides capital support of such channels; 6) mandates customer service standards regarding CenturyLink's provision of cable services; and 7) requires a performance bond and security fund to enforce CenturyLink's compliance with the Ordinance. Persons interested in reviewing a complete copy of the Ordinance may do so at the City Hall at 8080 Mitchell Road, Eden Prairie, MN 55344 during the hours of 9:00 a.m. and 4:00 p.m., Monday through Friday. Effective Date: This Ordinance shall take effect upon publication. Nancy Tyra-Lukens, Mayor ATTEST: Kathleen Porta, City Clerk PUBLISHED in the Eden Prairie News on February 11, 2016. CITY COUNCIL AGENDA DATE: SECTION: Consent Agenda February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: I.C. 16-5934 ITEM NO.: VIII.D. Leslie Stovring Resolution Approving the Clean Water Fund Public Works/Environmental Grant Agreement with the Metropolitan Council for a Water Efficiency Grant Program Requested Action Move to: Adopt Resolution Authorizing the Clean Water Fund Grant Agreement with the Metropolitan Council for a Water Efficiency Grant Program. Synopsis The Metropolitan Council has established a Grant Program to aid City's in starting or expanding rebate or grant programs to improve water conservation programs. The City applied for a grant in the amount of$37,500 to expand the City's water conservation rebate program for toilets, washing machines and irrigation systems. Matching funds will come from the water utility. Background Information On December 30, 2015 the City was awarded a Water Efficiency Grant through the Clean Water Fund program administered by the Metropolitan Council to expand our existing water conservation rebate program. The grant program can cover rebates or grants for Energy Star-qualified washing machine and WaterSense-qualified toilet and irrigation system purchases. In addition it can include audits for irrigation systems that result in replacement of controllers with WaterSense-qualified models and/or broken or damaged sprinkler heads. The City agreed to match a minimum of$12,500 through the existing program. Currently,the rebate program has provided rebates totally up to $33,000 per year for WaterSense-qualified toilets, faucets, showerheads and irrigation systems as well as Energy Star-qualified washing machines for residential customers. The plan for the grant funds includes expanding this program to include rebates for charitable institutions, homeowners associations and commercial customers. Matching funds would come from the City's water education program within the water utility. The Agreement includes the following provisions: • The City will provide promotional materials such as in Living Green News and at events such as the local Chamber of Commerce Home &Garden Show and the City-wide Open House. • The City may choose the amount of the rebate or grant to apply to any specified water device,up to 100%of the eligible cost. • New construction and new developments are not eligible. • The funds can cover the rebate or grant only, consulting and city staff time are ineligible. Attachments • Clean Water Fund Grant Agreement • Resolution METROPOLITAN COUNCIL CLEAN WAI ER FUND GRANT AGREEMENT NO. SG-04413 This Clean Water fund Grant Agreement ("Grant Agreement") is entered into this [date of signature by both parties] between the Metropolitan Council, a public corporation and political subdivision of the State of Minnesota("Met Council") and the City of Eden Prairie, a municipal corporation("Grantee"). RECITALS 1. The Minnesota Legislature, by Minnesota Session Laws 2015, 1st Special Session, chapter 2, article 2, section 9, appropriated to the Met Council funds from the Legacy Amendments Clean Water Fund ("Clean Water Fund" or "clean water fund") for State fiscal years 2016 and 2017, for the purpose of establishing a water demand reduction grant program to encourage implementation of water demand reduction measures in municipalities in the Minneapolis—St. Paul metropolitan area. 2. The Met Council is authorized by Minnesota Statutes sections 473.129, subdivision 4 and 473.504, subdivision 5 to apply for and use grants from the State for any Metropolitan Council purpose and may dispose of the money in accordance with the terms of the appropriation. 3. The Grantee is authorized to receive grants from the Clean Water Fund to protect, enhance and restore water quality in lakes, rivers and streams, to protect groundwater from degradation and protect drinking water sources by encouraging implementation of water demand reduction measures by municipalities in the Minneapolis—St. Paul metropolitan area to ensure reliability and protection of drinking water supplies. 4. On September 23, 2015, Met Council authorized the granting of portions of the appropriation to the Grantees participating in the grant program, the portion for Grantee defined ahead in this Agreement as "Grantee Program." 5. The Grantee represents that it is duly qualified and agrees to perform all services described in this Grant Agreement to the reasonable satisfaction of the Met Council. GRANT AGREEMENT 1. Term of Grant Agreement. 1.1. Effective Date. The effective date of this Grant Agreement is the date stated above on which the Grant Agreement has been duly executed by both parties. 1.2. Grant Activity Period. The first day of the month following the Effective Date through and including the expiration date. 1.3. Expiration Date. Upon satisfactory fulfillment of obligations, but in no event later than June 30, 2017. 1.4. Survival of Terms. The following clauses survive the expiration, termination or cancellation of this Grant Agreement; 9. Liability and Insurance; 10. Audits; 11. Government Data Practices; 13. Data Availability; 14. Governing Law, Jurisdiction and Venues; 16. Data Disclosure; 18. Future Eligibility. 1 2. Duties,Representations and Warranties of Grantee and Use of Grant Funds. 2.1. The Grantee agrees to conduct, administer and complete in a satisfactory manner the program ("Grantee Program") which is described in Grantee's application to Met Council for assistance under the Met Council's Clean Water Fund grant program, which application is incorporated into this Grant Agreement as Exhibit A, and in accordance with the terms and conditions of this Grant Agreement. Specifically,the Grantee agrees to perform the"Grantee Program"in accordance with a specific timeline, all as described in Exhibit B of this Grant Agreement and to undertake the financial responsibilities described in Exhibit B to this Grant Agreement. The Grantee has the responsibility for and obligation to complete the"Grantee Program"as described in Exhibit B. The Met Council makes no representation or warranties with respect to the success and effectiveness of the "Grantee Program". The Met Council acknowledges that"Grantee Program"work may be limited to soliciting participation by its residents and businesses in the "Grantee Program" and requires additional work by the Grantee only to the extent that residents and businesses choose to participate in the "Grantee Program", all as described in the Grantee's application attached as Exhibit A. The Grant Funds must be entirely passed through and can only be used for authorized rebates or grants for qualifying activities. 2.2. Grantee Representations and Warranties. The Grantee further covenants with and represents and warrants to Met Council, as follows: A. It has the legal authority to enter into, execute and deliver this Grant Agreement and all documents referred to herein, has taken all actions necessary to its execution and delivery of such documents and has provided to Met Council a copy of the resolution by its governing body which authorizes Grantee to enter into this Agreement, to undertake the Clean Water Fund Grant Program, including the Grantee financial responsibilities as shown in Exhibit B and which also designates an authorized representative for the Grantee Program who is authorized to provide certifications required in this Grant Agreement and submit pay claims for reimbursement of Grantee Program costs. B. It has legal authority to conduct and administer the Grantee Program and use the Grant Funds for the purpose or purposes described in this Agreement. C. This Grant Agreement and all other documents referred to herein are the legal, valid and binding obligations of the Grantee enforceable against the Grantee in accordance with their respective terms. D. It will comply with all of the terms, conditions, provisions, covenants, requirements, and warranties in this Agreement, and all other documents referred to herein. E. It will comply with all of the provisions and requirements contained in and imposed by the Clean Water Funding legislation and appropriations from Clean Water Fund legislation, except as explicitly stated in this Grant Agreement that compliance will be handled by the Council. F. It has made no material false statement or misstatement of fact in connection with the Grant Funds, and all of the information it has submitted or will submit to the Council relating to the Grant Funds or the disbursement of any of the Grant Funds is and will be true and correct. It agrees that all representations contained in its application for the Clean Water Fund Grant are material representations of fact upon which the Council relied in awarding this Grant and are incorporated into this Agreement by reference. 2 G. It is not in violation of any provisions of its charter or of the laws of the State of Minnesota, and there are no material actions, suits, or proceedings pending, or to its knowledge threatened, before any judicial body or governmental authority against or affecting it and is not in default with respect to any order,writ,injunction, decree, or demand of any court or any governmental authority which would impair its ability to enter into this Grant Agreement or any document referred to herein, or to perform any of the acts required of it in such documents. H. Neither the execution and delivery of this Grant Agreement or any document referred to herein nor compliance with any of the terms, conditions, requirements, or provisions contained in any of such documents is prevented by, is a breach of, or will result in a breach of, any term, condition, or provision of any agreement or document to which it is now a party or by which it is bound. I. The Grantee Program will not violate any applicable zoning or use statute, ordinance, building code, rule or regulation, or any covenant or agreement of record relating thereto. J. The Grantee Program will be conducted in full compliance with all applicable laws, statutes, rules, ordinances, and regulations issued by any federal, state, or other political subdivisions having jurisdiction over the Grantee Program. K. It will comply with the financial responsibility requirements contained in Exhibit B. L. It shall furnish such satisfactory evidence regarding the representations described herein as may be required and requested by the Met Council. 3. Time. Grantee must comply with all time requirements described in this Grant Agreement. In the performance of this Grant Agreement, time is of the essence. 4. Eligible Costs. Eligible costs are those costs incurred by parties within the jurisdiction of the Grantee only for 75% of rebate or grant payments as defined in Exhibit B. The Grantee shall not be reimbursed for non- eligible costs. Any cost not defined as an eligible cost or not included in the Grant Grantee Program or approved in writing by the Council is a non-eligible cost. 5. Consideration and Payment. 5.1 Consideration. The Met Council will reimburse Grantee for eligible costs performed by the Grantee during the Grant Period in an amount as specified in this agreement. The Met Council shall bear no responsibility for any cost overruns that may be incurred by the Grantee or sub-recipients of any tier in the performance of the Grantee Program. The initial Grant amount to Grantee under this Grant Agreement is $37,500.00. The Grantee may be eligible to receive additional Grant amounts or an adjustment in Grant amount in accordance with the procedure set forth in the Grant Amendment Form attached hereto and made a part hereof as Exhibit C. Upon signature by both Grantee and Met Council on Exhibit C this Grant is amended by the amount of increase or decrease approved by Met Council in Exhibit(s) C. 5.2. Advance. The Met Council will make no advance of the Grant Amount to Grantee. The disbursement of the Grant Amount shall be in the form of reimbursement for eligible costs as provided ahead in this Section 5. 3 5.3. Payment. To obtain payment under this Grant Agreement, the Grantee shall submit a Reimbursement Request/Progress Report on forms provided by the Met Council, and shall submit electronically scanned copies of receipts to verify the cost of eligible devices reported for each reporting period. Reimbursement Request/Progress Reports must be submitted quarterly after this grant agreement has been executed,even if there have been no eligible costs to report and for which to seek reimbursement. The Grantee shall describe its compliance with its the financial requirements and work completed and specific addresses where work was undertaken in connection with the grant and shall provide sufficient documentation of grant eligible expenditures and such other information as the Met Council's staff reasonably requests. The Met Council will promptly pay the Grantee after the Grantee presents to the Met Council a Reimbursement Request/Progress Report and scanned copies of all receipts verifying the cost for all eligible devices reported and the Met Council's Authorized Representative accepts the invoiced services. 6. Conditions of Payment. 6.1. The Grantee must certify to the Council that work at each site for which payment is requested is done, that Grantee has received receipts for such work, that the work was not performed in violation of federal, Met Council, or local law or regulation and that Grantee has issued the appropriate permits for the work completed in the Grantee Program. 6.2. Conditions Precedent to Any Reimbursement Request. The obligation of the Met Council to make reimbursement payments hereunder shall be subject to the following conditions precedent: A. The Met Council shall have received a Reimbursement Request/Progress Report for such amount of funds being requested, and electronically scanned copies of receipts verifying the cost for all eligible devices for that reporting period B. The Met Council shall have received evidence upon request, and in form and substance acceptable to the Met Council,that(i)the Grantee has legal authority to and has taken all actions necessary to enter into this Agreement and (ii)this Agreement is binding on and enforceable against the Grantee. C. The Met Council shall have received evidence upon request, and in form and substance acceptable to the Met Council,that all applicable and required building permits, other permits, bonds and licenses necessary for each site included in the Grantee Program including, where applicable, operation of the site, have been paid for, issued and obtained, other than those permits, bonds and licenses which may not lawfully be obtained until a future date or those permits,bonds and licenses which in the ordinary course of business would normally not be obtained until a later date and that each site under the Grantee Program is active and serving an occupied building. D. No Event of Default under this Grant Agreement or event which would constitute an Event of Default but for the requirement that notice be given or that a period of grace or time elapse shall have occurred and be continuing. E. The Grantee has supplied to the Met Council all other items that the Met Council may reasonably require to assure good fiscal oversight of state's funding through the Clean Water Fund. 7. Authorized Representative. The Met Council's Authorized Representative is: 4 Name: Brian Davis or successor Title: Senior Engineer Mailing Address: 390 North Robert Street St. Paul, MN 55101 Phone: (651) 602-1519 E-Mail Address: brian.davis@metc.state.mn.us or his successor, and has the responsibility to monitor the Grantee's performance and the authority to accept the services provided under this grant contract. If the services are satisfactory, the Met Council's Authorized Representative will certify acceptance on each invoice submitted for payment. The Grantee's Authorized Representative is: Name: Leslie Stovring, Environmental Coordinator Mailing Address: 8080 Mitchell Rd., Eden Prairie, MN 55344 Phone: 952-949-8327 E-Mail Address: lstovring@edenprairie.org If the Grantee's Authorized Representative changes at any time during this Grant Agreement,the Grantee shall immediately notify the Met Council and shall within 30 days provide a written designation by the City Manager of a successor Authorized Representative as authorized in the Resolution required in Section 2.2.A. 8. Assignment,Amendments, Waiver, and Grant contract Complete. 8.1 Assignment. The Grantee may neither assign nor transfer any rights or obligations under this Grant Agreement without the prior consent of the Met Council and a fully executed Assignment Agreement, executed and approved by the same parties who executed and approved this Grant Agreement, or their successors in office. 8.2 Amendments. Any amendment to this Grant Agreement must be in writing and will not be effective until it has been executed and approved by the same parties who executed and approved the original Grant Agreement, or their successors, or their delegate in office. 8.3 Waiver. If the Met Council fails to enforce any provision of this Grant Agreement, that failure does not waive the provision or its right to enforce it. 8.4 Grant Contract Complete. This Grant Agreement contains all negotiations and agreements between the Met Council and the Grantee. No other understanding regarding this Grant Agreement, whether written or oral, may be used to bind either party. 9. Liability and Insurance. 9.1 Liability. The Grantee and the Met Council agree that they will be responsible for their own acts and the results thereof to the extent authorized by law, and they shall not be responsible for the acts of the other party and the results thereof. The liability of the Met Council is governed by the provisions contained in Minn. Stat. Chapter 466 as it may be amended,modified or replaced from time to time. The liability of the Grantee is governed by the provisions contained in Minn. Stat. Chapter 466 as it may be amended, modified or replaced from time to time. 5 9.2 Relationship of the Parties. Nothing contained in this Grant Agreement is intended or should be construed in any manner as creating or establishing the relationship of co-partners or a joint venture between the Grantee and the Met Council, nor shall the Grantee be considered or deemed to be an agent, representative,or employee of the Met Council in the performance of this Grant Agreement,or the Grantee Program. The Grantee represents that it has already or will secure or cause to be secured all personnel required for the performance of this Grant Agreement and the Grantee Program. All personnel of the Grantee or other persons while engaging in the performance of this Grant Agreement the Grantee Program shall not have any contractual relationship with the Met Council related to the work of the Grantee Program and shall not be considered employees of the Met Council. In addition, all claims that may arise on behalf of said personnel or other persons out of employment or alleged employment including, but not limited to, claims under the Workers' Compensation Act of the State of Minnesota, claims of discrimination against the Grantee, its officers, agents, contractors, or employees shall in no way be the responsibility of the Met Council. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from the Met Council, including but not limited to,tenure rights,medical and hospital care, sick and vacation leave, disability benefits, severance pay and retirement benefits. 10. Audits. Under Minn. Stat. § 16C.05, subd. 5,the Grantee's books,records,documents,and accounting procedures and practices relevant to this grant contract are subject to examination by the Met Council and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the termination date of this Grant Agreement. 11. Government Data Practices. The Grantee and Met Council must comply with the Minnesota Government Data Practices Act, Minn. Stat. Chapter 13, as it applies to all data provided by the Met Council under this grant contract, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Grantee under this Grant Agreement. The civil remedies of Minn. Stat. § 13.08 apply to the release of the data referred to in this clause by either the Grantee or the Met Council. If the Grantee receives a request to release the data referred to in this Clause, the Grantee must immediately notify the Met Council. 12. Workers' Compensation. The Grantee certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to workers' compensation insurance coverage. The Grantee's employees and agents will not be considered Met Council employees. Any claims that may arise under the Minnesota Workers Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the Met Council's obligation or responsibility. 13. Data Availability. To the extent and as requested by the Council, Grantee agrees to comply with Minn. Stat. § 114D.50, subd. 5 requirements for data collected by the Grantee Programs funded with money from the Clean Water Fund that have value for planning and management of natural resources, emergency preparedness and infrastructure investments, including but not limited to the requirement that to the extent practicable, summary data and results of Grantee Programs funded with money from the Clean Water Fund should be readily accessible on the internet and identified as a Clean Water Fund Grantee Program. The Council 6 will put overall summary information on the internet and will encourage the Grantee put its city information on the web. Grantee understands and agrees that Council may list its name and summary information on the internet or in any other Grantor reporting. 14. Governing Law,Jurisdiction, and Venue. Minnesota law, without regard to its choice-of-law provisions, governs this Grant Agreement. Venue for all legal proceedings out of this grant contract, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 15. Termination. The Met Council may cancel this Grant Agreement at any time, with or without cause, upon 30 days' written notice to the Grantee. Upon termination, the Grantee will be entitled to payment for services prequalified and satisfactorily performed before the termination notice. 16. Data Disclosure. Under Minn. Stat. § 270C.65, subd. 3, and other applicable law, the Grantee consents to disclosure of its federal employer tax identification number, and/or Minnesota tax identification number, already provided to the Met Council, to federal and state tax agencies and Met Council personnel involved in the payment of Met Council obligations. Grantee will require compliance with this Section 16 by Grantee's subrecipient of Grant funds and shall submit evidence of such compliance to Met Council as requested. 17. Notices. In addition to any notice required under applicable law to be given in another manner,any notices required hereunder must be in writing and shall be sufficient if personally served or sent by prepaid, registered, or certified mail (return receipt requested),to the business address of the party to whom it is directed. Such business address shall be that address specified below or such different address as may hereafter be specified, by either party by written notice to the other: To the Grantee at: City of Eden Prairie 8080 Mitchell Rd. Eden Prairie, MN 55344 Attention: Leslie Stovring To the Met Council at: Metropolitan Council 390 Robert Street North St. Paul, MN 55101 Attention: Regional Administrator With copy to: MCES General Manager Metropolitan Council Environmental Services 390 Robert Street North St. Paul, MN 55101 7 MCES Finance Director Metropolitan Council Environmental Services 390 Robert Street North St. Paul, MN 55101 18. Miscellaneous. 18.1 Report to Legislature. As provided in Minn. Stat. § 3.195, the Met Council must submit a report on the expenditure and use of money appropriated under the Clean Water Fund to the legislature by January 15 of each year. The report must detail the outcomes in terms of additional use of Clean Water Fund resources, user satisfaction surveys, and other appropriate outcomes. The grantee agrees to provide to the Met Council by January 1 of each year a report on any user satisfaction surveys it has related to this Grantee Program, and other appropriate outcomes of the Grantee Program as prescribed in Section 18.3 of this Agreement. 18.2 Supplement. The funds granted under this agreement are to supplement and shall not substitute for traditional sources of funding. Therefore, the Grantee hereby certifies to the Met Council that there was and is no traditional Grantee sources of funding for the City to help fund one- fourth (1/4) of the subject water efficiency rebate or grant work. 18.3 Measureable Outcomes. To the extent and upon request of the Council, Grantee agrees to demonstrate compliance with the following: A Grantee Program or program receiving funding from the Clean Water Fund must meet or exceed the constitutional requirement to protect, enhance, and restore water quality in lakes, rivers and streams and to protect groundwater and drinking water from degradation. A Grantee Program or program receiving funding from the Clean Water Fund must include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for measuring and evaluating the results. A Grantee Program or program must be consistent with current science and incorporate state-of-the-art technology. All information for funded Grantee Program work, including the proposed measurable outcomes, must be made available for publication on the Web site required under section 3.303, subdivision 10, as soon as practicable and forwarded to the Met Council and the Legislative Coordinating Commission under the provisions of Minn. Stat. § 3.303, subd. 10. The Grantee must compile and submit all information for funded Grantee Programs or programs, including the proposed measurable outcomes and all other items required under section 3.303, subdivision 10, to the Met Council and, if requested by the Council, the Legislative Coordinating Commission as soon as practicable or by January 15 of the applicable fiscal year, whichever comes first. 18.4 Minn. Stat. § 16B.98. Grants funded by the Clean Water Fund must be implemented according to section 16B.98 and must account for all expenditures. 18.5 Benefit to Minnesota Waters. Money from the Clean Water Fund may only be spent on Grantee Programs that benefit Minnesota waters. 18.6 Website. If the Grantee has information on its website about the water efficiency grant program pursuant to Minn. Stat. §;114D.50, the Grantee shall, when practicable,prominently display on the Grantee's Website home page the Legacy logo required under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter 361, article 3, section 5, accompanied by the phrase "Click here for more information." When a person clicks on the Legacy logo image, the Web site must direct the person to a Web page that includes both the contact information that a person 8 may use to obtain additional information, as well as a link to the Council's and Legislative Coordinating Commission Website required under section 3.303, subdivision 10. 18.7 Future Eligibility. Future eligibility for money from the Clean Water Fund is contingent upon the Grantee satisfying all application requirements related to Council's fulfillment of Minn. Stat. § 114D.50 as well as any additional requirements contained in 2013 Session Laws chapter 137, article 2, section 9. 18.8 Data Availability. Data collected by the Grantee Programs, if any, funded with money from the Clean Water Fund that have value for planning and management of natural resources, emergency preparedness, and infrastructure investments must conform to the enterprise information architecture developed by the Office of MN.IT Services. Spatial data must conform to geographic information system guidelines and standards outlined in that architecture and adopted by the Minnesota Geographic Data Clearinghouse at the Minnesota Geospatial Information Office. A description of these data that adheres to the Office of MN.IT Services geographic metadata standards must be submitted to the Minnesota Geospatial Information Office to be made available online through the clearinghouse and the data must be accessible and free to the public unless made private under chapter 13. To the extent practicable, summary data and results of the Grantee Program funded with money from the clean water fund should be readily accessible on the Internet and identified as a Clean Water Fund Grantee Program. 18.9 Prevailing Wages. The Grantee agrees to comply with all of the applicable provisions contained in chapter 177 of the Minnesota Statutes, and specifically those provisions contained in Minn. Stat. §§ 177.41 through 177.435, as they may be amended,modified or replaced from time to time with respect to the Grantee Program. By agreeing to this provision, the Grantee is not acknowledging or agreeing that the cited provisions apply to the Grantee Program. 18.10. E-Verification. The Grantee agrees and acknowledges that it is aware of Governor's Executive Order 08-01 regarding e-verification of employment of all newly hired employees to confirm that such employees are legally entitled to work in the United States, and that it will, if and when applicable, fully comply with such order. 18.11 Disability Access. Where appropriate, Grantee of clean water funds, in consultation with the Council on Disability and other appropriate governor-appointed disability councils, boards, committees, and commissions, should make progress toward providing greater access to programs, print publications, and digital media for people with disabilities related to the programs the recipient funds using appropriations made in this agreement. 18.12. General Provisions. (i) Grants. The Grantee shall implement this Grant Agreement according to Minnesota Statutes, section 16B.98, and shall account for all expenditures of funds. (ii) Lawsuit. This Grant shall be canceled to the extent that a court determines that the appropriation unconstitutionally substitutes for a traditional source of funding. (iii) Termination Due to Lack of Funds. Grantee recognizes that Council's obligation to reimburse Grantee for eligible Grantee Program costs is dependent upon Council's receipt of funds from the State of Minnesota appropriated to Council under 2015 Session Laws, 1st Special Session, Chapter 2, Article 2, Section 9. Should the State of Minnesota terminate such appropriation or should such funds become unavailable to Council for any reason, Council shall, upon written 9 notice to Grantee of termination or unavailability of such funds, have no further obligations for reimbursement or otherwise under this Grant Agreement. In the event of such written notice to Grantee by Council of termination or unavailability of funds, Grantee has no further obligation to complete the Grantee Program as required by this Grant Agreement. 19. Default and Remedies. 19.1 Defaults. The Grantee's failure to fully comply with all of the provisions contained in this Grant Agreement shall be an event of default hereunder("Event of Default"). 19.2. Remedies. Upon an event of default, the Met Council may exercise any one or more of the following remedies: a. Refrain from disbursing the Grant; b. Demand that all or any portion of the Grant already disbursed be repaid to it, and upon such demand the Grantee shall repay such amount to the Met Council. c. Enforce any additional remedies the Met Council may have at law or in equity. IN WITNESS WHEREOF, the parties have caused this agreement to be executed by their duly authorized representatives on or as of the date first above written. METROPOLITAN COUNCIL By: Regional Administrator, successor,or delegatee Date: 10 GRANTEE: The Grantee certifies that the appropriate person(s) have executed the grant contract on behalf of the Grantee as required by applicable articles, bylaws, resolutions, or ordinances. By: Printed Name and Title Date: By: Printed Name and Title Date: 11 EXHIBIT A Metropolitan Council Water Efficiency Grant Application Form Applicant Information Municipality: city of Eden Prairie Municipality Utility: Water Mailing Address: 8080 Mitchell Rd, Eden Prairie,MN 55344 Primary Contact Information: The City/Coiuiminity primary authorized representative (all correspondence and city responsibility regarding participation in the Grantee Program should be should be addressed to individual named below)_ NAME: Leslie Stowing TITLE: Environmental Coordinator STREET: 8080 Mitchell Rd. CITY, ZIP: Eden Prairie,55344 PHONE: 952-949-8327 EMAIL: istoaringra3edenpra rie.org Secondary Contact Information: City/Community :Secondary Authorized Representative: NAME: Rick Wahlen TITLE: Utility Operations Manager STREET: 14100 Technology Drive CITY, ZIP: Eden Prairie,55344 PHONE: 952-294-5908 EMAIL: mahlen@edenprairie_org Municipal Utility Total Per Capita Water Use (2013): 118 gal per person per day Municipal Utility Residential Per capita Water Use (2013): 90 gal per person per day Municipal Utility Ratio of Peak Month to Winter Month Water Use (2013): 3.5-1 Municipality's estimated annual water savings from proposed program: 13 million gallons Municipal Utility Grant or Rebate Program Design Requested Grant Amount (must equal 75% of total program budget): $37,500 Required Utility Matching Amount (must equal 2% of total program budget): Si 2,500 Will your program be a grant program or rebate program: Rebate Estimated Number of Items: Item Estimated Number Toilets 400 Clothes Washing Machines 100 Irrigation System Controllers 100 Metropolitan Council Water Efficiency Grant Application Form Project Work Plan and Schedule' Task Description Responsible Estimated Start Date Estimated Completion Person Group Date Provide a Living Leslie Stovring / Jan. 1, 2016 Feb. 1, 2016 Green News piece Joyce Lorenz and Email communication about expanded program Reach out to Carol Lundgren / Feb. 1, 2016 April 30, 2016 multi-family, Leslie Stovring commercial and non-profits to discuss upgrade opportunities Prepare materials to Leslie Stovring / Carol Feb. 1, 2016 March 19, 2016 provide information Lundberg about the rebates at the local Home Garden Show June newsletter Leslie Stovring i April 15, 2016 a June 15, 20'16 article on Joyce Lorenz opportunities (Living Green Newsletter) and online reminders Follow up Carol Lundgren June 1, 2016 Dec. 31, 2016 communications with Leslie Stovring ,' Rick potential rebate Wahlen customers Municipal utility may create own project plan and schedule foram 13 Metropolitan Council Water Efficiency Grant Application Form Communications to Property Owners How will your program be advertised? Newsletter itf Print Media 1 Email 1 Twitter Radio Television Please provide examples of proposed newsletter, print media, or email communication Critical Points to Remember • The applying municipality mast be a water supplier • New construction and new developments are not eligible • Funds are for rebates or grants only_ consulting and city staff time are ineligible • Grant funds for a municipality's rebate or grant program do not cover 100% of the program cost • The municipality's rebate or grant amount cannot pay for 100% of the eligible activity's cost • Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo EXHIBIT B Clean Water Fund Grant Program Overview & Goal, Structure, and Qualified Activities (for reference only; should anything herein be contradicted by the Agreement language,the Agreement terms prevail). Overview The Metropolitan Council (Council) will implement a water efficiency grant program effective September 30, 2015 to June 30, 2017. Grants will be awarded on a competitive basis to municipalities that manage municipal water systems. The Council will provide 75% of the program cost; the municipality must provide the remaining 25%. Grants will be made available in amounts with a minimum of$2,000 and a maximum of$50,000. Grantees will be required to provide estimated water savings achieved through this program for Clean Water Land & Legacy Amendment reporting purposes. 14 Legislative Directive Minnesota 2015 Session Law Ch. 2, Art. 2, Sec. 9: $250,000 the first year and $250,000 the second year are for the water demand reduction grant program to encourage implementation of water demand reduction measures by municipalities in the metropolitan area to ensure the reliability and protection of drinking water supplies. Grant Program Goal The goal of the water efficiency grant program is to support technical and behavioral changes that improve municipal water use efficiency in the seven-county metropolitan area. Critical Points to Remember • The applying municipality must be a water supplier • New construction and new developments are not eligible • Funds are for rebates or grants only; consulting and city staff time are ineligible • Grant funds for a municipality's rebate or grant program do not cover 100% of the program cost • The municipality's rebate or grant amount cannot pay for 100% of the eligible activity's cost • Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo Grant Program Structure Administration and Funding The water conservation grant program will be administered by the Metropolitan Council Environmental Services (MCES)and will be funded with$500,000 appropriated by the 2015 Minnesota Legislature in Clean Water Funds for FY 2015-2016. Grant applications will be reviewed and ranked by the MCES Water Supply Planning Unit staff Grants are only for water efficiency programs offering rebates or grants to property owners who are customers of the municipal water supply system and who replace specified water using devices with devices that use substantially less water. Grants will be awarded to municipalities in amounts ranging from $2,000 to $50,000 for providing rebates or grants to property owners. Municipalities will be responsible for the design of their rebate or grant program and its details. Grant payments to the municipality will be for 75%of approved rebate or grant program amounts. The municipality must provide the remaining 25% of the program cost. Rebates or grants are eligible for reimbursement on device replacements conducted September 30, 2015 through June 30, 2017. Please note: municipalities may choose the amount of the rebate or grant to apply to any specified water device, up to and including 100% of eligible costs for the device replacements. Eligibility Per legislative language, the grant program is limited to municipalities in the seven-county metropolitan area. 15 Communities eligible per above must apply to participate and, if approved, sign a standard Council grant agreement, before any eligible rebates or grants can be submitted for reimbursement. Agreements shall require that communities: • Sign certification of work done to receive grants. • Retain records, and cooperate with any audit. • Do all communications with property owners and ensure all written communications to property owners include both the Clean Water, Land and Legacy Amendment and the Metropolitan Council's logo. • Agree to provide quantitative information for state reporting purposes. Eligible water efficiency measures: • Toilet replacement with a US EPA WaterSense labeled toilet • Clothes washing machine replacement with an Energy Star qualified clothes washing machine • Irrigation system audits by a WaterSense audit-certified professional that result in an irrigation system Controller Replacements with a WaterSense labeled controller, replacement of broken or inefficient sprinkler heads Expenses eligible for rebate are the out-of-pocket cost of the device and its installation only, not to include any owner labor costs. In addition,new construction and new developments are ineligible,as this program is intended as a current infrastructure replacement program. \ Application Process • Applicants must be municipal water suppliers. • Municipalities will submit MCES supplied application form by November 30, 2015. Required information will include: o the municipality's rebate or grant program design and work plan(Template Provided) o examples or proposed examples of communications to property owners o requested total grant amount o estimated annual amount of water saved by the applying municipality. • Metropolitan Council will notify municipalities of grant awards and provide agreements by December 31, 2015. Proposal Selection Criteria Preference will be given to: • Municipalities where total per capita water use is greater than 90 gallons per capita per day (gpcd) or residential per capita water use is greater than 75 gpcd (based on 2013 water data reported to the DNR) • Municipalities that are supplied 100%with groundwater • Municipalities with identified water supply issues in the Master Water Supply Plan Community Profiles (including location within the DNR North& East Metro Groundwater Management Area) • Municipalities with a high ratio of peak monthly water use to winter monthly water use (based on 2013 water data reported to the DNR) • The order in which applications are received and until grant funds are completely committed. 16 Funding Process and Reporting Requirements • Utilizing forms provided by MCES, the following information must be reported on a quarterly basis: o Number,type and amount of rebates or grants provided to property owners, along with each property address o Estimated annual gallons of water saved per installation o Municipality matching funds disbursed and encumbered for disbursement o Number of unmet funding requests from property owners • Upon review and confirmation of the above information, including electronically scanned copies of receipts verifying the cost of eligible devices reported for that reporting period, MCES will process a grant payment in the amount of 75% of approved total rebates or grants for the reporting period. • MCES will provide confirmation of grant balances available upon request and reserves the right to amend grant agreements, in collaboration with grantee municipality, if quarterly reporting indicates rebate or grant programs will not fully utilize grant awards within the grant period. Qualified Activities • Toilet Replacements http://www.epa.gov/WaterSense/product search.html • Residential Clothes Washing Machine Replacements http://www.energystar.gov/pro ductfinder/pro duct/certified-clothes-washers/results • Irrigation System Audits that result in Irrigation System Controller Replacements http://www.epa.gov/watersense/outdoor/cert programs.html http://www.epa.gov/WaterSense/product search.html • Irrigation System Controller Replacements only http://www.epa.gov/WaterSense/product search.html Reporting and Rebate Example 17 Municipality ABC Rebate or Total Eligible Est Annual Water Device Municipality Property Address Property Type # Grant per Rebate or Grant Water Saved Replaced Contribution device Grant Amount (Gal) 2828 Service Rd,55035 Residential Toilet 2 $50.00 $100.00 $25.00 $75.00 250 Clothes Washer 1 $125.00 $125.00 $31.25 $93.75 325 1658 Rockford Rd,55034 Residential Toilet 1 $50.00 $50.00 $12.50 $37.50 250 Clothes Washer 1 $125.00 $125.00 $31.25 $93.75 325 Irrigation Control 2 $200.00 $400.00 $100.00 $300.00 1575 52 Pennington Ave,55035 Commercial Toilet 4 $50.00 $200.00 $50.00 $150.00 500 Totals $1,000.00 $250.00 $750.00 3225 18 EXHIBIT C Revision # METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES 2015 CLEAN WATER FUND WATER EFFICIENCY GRANT PROGRAM GRANT AMENDMENT FORM NOTICE TO GRANTEE: Submission of this form is required to modify your city's signed agreement with Metropolitan Council Environmental Services (MCES) 2015 Clean Water Fund Water Efficiency Grant program (Grantee Program). Subsequent to determination of your city's initial grant amount per the signed agreement, completion and submission of this form is necessary when 1)you are requesting additional grant funds to meet unexpected rebate or grant demand, or 2) when your city has determined that the previously approved program's rebate or grant demand will not be met, requiring less grant funds than anticipated when the agreement was signed. The process for modifying your agreement is as follows: 1. Your City's designated authorized representative submits 2 signed copies of Exhibit B to MCES, with an attachment itemizing request(s) for a)pre-qualification of additional projects and/or b) changes to prior prequalified amounts. 2. Upon receipt of signed Exhibit B, MCES Program Administrator obtains Council authorized signatures that officially modifies the agreement, maintains in the contract file and returns a fully signed copy of Exhibit B indicating new grant amount to City's designated authorized representative. These steps MUST OCCUR via postal or other courier service to include original signatures and require retention of signed documents to be made available upon request. Instructions: Indicate the date of your change request in#1 box. Indicate the number of this particular change request in #2 box (and in box at top of page—must match). Enter the current grant agreement amount (as MCES approved) in#3 box. If you wish to increase your municipality's grant amount, enter the amount you are requesting in#4 box. If you wish to decrease your grant amount due to lesser demand than anticipated, enter the amount in#5 box. Enter in#6 box the amount derived from adding#3 to #4 or derived from subtracting#5 from#3. Grant Agreement# 1. Date of change request: 2. Change request number: 3. Current Grant Agreement Amount(as MCES approved): 4. Increase due to request for additional funding: 5. Decrease due to lessor demand: 6. Amended Grant Agreement Amount requested: CITY NAME: I request the above changes (sign with title and date): MCES PROGRAM ADMINISTRATOR APPROVAL (signature and date): COUNCIL AUTHORIZED SIGNATURE AND DATE Questions may be directed to the MCES Program Administrator: Brian Davis MCES Senior Engineer 390 Robert Street North St. Paul, MN 55101-1805 Phone: (651) 602-1519 Email: brian.davis&Wmetc.state.mn.us 20 CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO. 2016- A RESOLUTION AUTHORIZING THE CITY TO ENTER INTO THE CLEAN WATER FUND GRANT AGREEMENT AND TO UNDERTAKE THE CLEAN WATER FUND GRANT PROGRAM THROUGH THE METROPOLITAN COUNCIL WHEREAS,the Metropolitan Council (Met Council)has received funds from the Legacy Amendment's Clean Water Fund for State fiscal years 2016 and 2017 for the purpose of establishing a water demand reduction grant program to encourage implementation of water demand reduction measure in municipalities in the Minneapolis-St. Paul metropolitan area; and WHEREAS,the City has applied for a Water Efficiency Grant(Grant)through the Clean Water Fund program established by Met Council; and WHEREAS,the Grant is for water efficiency programs offering rebates or grants to property owners who are customers of the municipal water supply system and who replace specified water using devices with devices that use substantially less water(Program); and WHEREAS,the Program may include rebates or grants for purchase of WaterSense labeled toilets, Energy Star clothes washing machines,WaterSense labeled controllers,and/or audits by WaterSense certified professionals that result in replacement of controller(s),or broken or inefficient sprinkler heads; and WHEREAS,the City is responsible for the design and administration of the Program; and WHEREAS,the Grant will provide 75%of the approved Program costs and the City must provide the remaining 25%of the Program cost. NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Eden Prairie, County of Hennepin, as follows: 1. The City is authorized to undertake the Clean Water Fund Grant Program through the Met Council. 2. The City is authorized to enter into the Clean Water Fund Grant Agreement as attached hereto and the Mayor and City Manager are authorized to execute the Agreement and any other related documents necessary to undertake the Program. 3. The City designates the Environmental Coordinator as the Authorized Representative under the Agreement and grants the Authorized Representative the authority to provide the certifications required by the Agreement and to submit pay clams for reimbursement of program costs. The City Manager may appoint a successor Authorized Representative if required. ADOPTED by the City Council of the City of Eden Prairie on this 2nd day of February, 2016. Nancy Tyra-Lukens, Mayor ATTEST: Kathleen Porta, City Clerk CITY COUNCIL AGENDA DATE: SECTION: Consent Agenda February 2,2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: I.C. 12-5815 ITEM NO.: VIII.E. Leslie Stovring Approve the Delegation Agreement with the MN Public Works/Environmental Department of Natural Resources for Aquatic Invasive Species Prevention Requested Action Move to: Approve the Delegation Agreement with the Minnesota Department of Natural Resources for Aquatic Invasive Species Prevention and Inspection of Water-Related Equipment. Synopsis Riley-Purgatory-Bluff Creek Watershed District(RPBCWD)has requested that the City of Eden Prairie establish a municipal aquatic invasive species inspection program. To aid in this effort, the City intends to hire interns to manage the watercraft inspector program for the summer. In order for City staff to receive training for the program, a Delegation Agreement(DA)with the Dept. of Natural Resources (DNR)is required. Background Information On March 14, 2012 RPBCWD sent a letter acknowledging the City's efforts in establishing an aquatic invasive species (AIS)program. An inspection program was approved on May 1, 2012 by the City Council that targets Riley, Red Rock, Mitchell and Round Lakes. Staring Lake will also be included as water quality and the fishery habitat improve. The hope is that implementation of the inspection program will help in stopping the spread of invasive species such as zebra mussels. As part of the program,the City agrees to hire interns to provide the inspections and manage the program. In order for the DNR to provide the training required for AIS detection and prevention, they require that the City sign a DA. The DA will be effective through December 31, 2017. All internship hours would be paid by a combination of funding from the Riley-Purgatory-Bluff Creek Watershed District(typically up to $25,000 per year) and the City's stormwater utility program. The Delegation Agreement includes the following provisions: • The DNR will provide training of individuals or contractors employed by the City. • The DNR will provide training of licensed peace officers to enforce state invasive species law. • The City will ensure there is adequate law enforcement staffing to support the inspectors. • The City will ensure that individuals employed by the City and/or their contractors have completed the training and certification program. • The City will ensure that inspections are conducted in accordance with current DNR procedures. • The City will support education and outreach programs to help increase public awareness about the risks AIS pose and their ability to contribute to preventing or managing the spread of AIS. • The City and DNR will regularly meet or consult to collaboratively develop the AIS program. Attachment Delegation Agreement It 41 DELEGATION AGREEMENT Aquatic Invasive Species (AIS) Prevention Inspection of Water-related Equipment MNDNR This agreement is made by and between the Department of Natural Resources (referred to as DNR), an administrative agency of the State of Minnesota and City of Eden Prairie (referred to as Governmental Unit), a local government unit(individually referred to generally as a Party or together as Parties). Governmental unit is defined as a tribal or local government. This agreement is entered into under authority granted to DNR pursuant to Minnesota Statutes section 84D.105. WHEREAS AQUATIC INVASIVE SPECIES (AIS) are nonnative species that cause or may cause economic or environmental harm or harm to human health or threatens or may threaten natural resources or the use of natural resources in the state; WHEREAS DNR has been authorized and charged with responsibility by the state legislature to establish a statewide program to prevent and manage the spread of AIS in coordination with other governmental entities; DNR has in its employ conservation officers trained and authorized to enforce the state invasive species laws; and DNR has developed AIS inspection protocols; WHEREAS pursuant to Minnesota Statutes section 84D.105, Subdivision 2(a), Governmental Unit is a Tribal or local government that agrees to assume legal, financial, and administrative responsibilities for inspection programs on some or all public waters within their jurisdiction; and WHEREAS DNR and Governmental Unit are committed to three core principles: • Coordination of their authority and resources to develop a reasonable and effective water- related equipment inspection requirement to stop the spread of AIS in the state and prevent the introduction of new AIS; • a collaborative, cooperative approach to AIS management and prevention; and • ensuring continued access to public waters. NOW, THEREFORE it is mutually agreed by and between the Parties as follows: 1. PURPOSE. The purpose of this agreement is to enhance Minnesota's capacity to prevent the spread of AIS by enabling local governmental units to perform AIS inspections and manage access to water resources in keeping with the three principles stated above. 2. TASKS AND RESPONSIBILITIES. A. DNR or its delegee will provide training of individuals employed by Governmental Unit and/or individuals working for contractors to Governmental Unit as inspectors and, upon successful completion of training and testing requirements, the DNR will certify individuals as authorized inspectors in accordance with Minnesota Statutes section 84D.105, subd. 2(a). DNR will assume all obligation for training to the extent set forth in Minnesota Statutes section 84D.105. Page 1 of 4 Delegation Agreement B. DNR will provide training of licensed peace officers identified by Governmental Unit to enforce the state invasive species law, as it pertains to the transport,possession and use of water-related equipment. C. Governmental Unit will work with DNR and other governmental entities to ensure that conservation officers and licensed peace officers are available to support Governmental Unit inspectors when inspection stations are being operated. D. Governmental Unit will design and implement an AIS inspection program, approved by DNR, on some or all public waters within their jurisdiction utilizing existing authorities and the authority granted to inspectors under Minnesota Statutes sections 84D.105, subd. 2(b) and 84D.10, subd. 3(a), clauses 1, 3, and 4 (the Program). The program must comply with all requirements in Minnesota Statutes section 84D.105 and in DNR Watercraft Inspection Program procedures and manuals. E. Governmental Unit will designate individuals employed by the Governmental Unit and/or individuals working for contractors to Governmental Unit to serve as inspectors for the Program and ensure that these individuals complete the required training and certification in paragraph 2A of this agreement prior to performing inspections. Governmental Unit will help coordinate training of licensed peace officers as provided under paragraph 2B of this agreement. F. Governmental Unit will provide one or more inspection stations established under the Program with trained and certified inspectors, who will exercise inspection authorities in accordance with current DNR procedures and manuals. General inspection procedures include: i. Visually and tactilely inspecting water-related equipment to determine whether aquatic invasive species, aquatic macrophytes, or water is present; ii. Instructing persons on how to comply with AIS laws by removing AIS, draining, decontaminating, or treating AIS and water-related equipment to prevent the transportation and spread of aquatic invasive species, aquatic macrophytes, and water; iii. Issuing verbal orders to prohibit placing water-related equipment, that has AIS attached or water that has not been drained, into waters of the state; iv. With owner's consent, assisting with the removal of AIS and decontamination of water-related equipment; and v. Contacting Conservation Officers or licensed peace officers if a person transporting watercraft or water-related equipment refuses to take corrective actions to remove AIS or fails to comply with requirements to drain water prior to leaving the water access. G. Governmental Unit will support education and outreach projects and programs designed to increase public awareness and knowledge of the risks AIS pose to water resources and public capacity to contribute to the effort to prevent and manage the spread of AIS. H. Governmental Unit assumes legal, financial, and administrative responsibilities for their staff and the actions of their staff and will bear costs incurred in completing the tasks and responsibilities herein, except that DNR will provide, at its sole expense, staff and/or contracted professionals to coordinate and conduct the training described herein. I. Governmental Unit and DNR will regularly meet or consult with each other to collaboratively develop the above-described elements of Governmental Unit AIS Program and potential models that could be used by other local governments to help the prevent the spread of AIS, guided by the three core principles stated above. Page 2 of 4 Delegation Agreement J. Governmental Unit must submit an annual report to the DNR summarizing the results and issues related to implementing the inspection program. 3. INDEMNIFICATION. Each Party to this agreement shall be liable for its own acts and omissions and the results thereof to the extent authorized by law and shall not be responsible for the acts and omissions of the other party, its agents, volunteers or employees. It is understood and agreed that liability and damages arising from the parties' acts and omissions are governed by the provisions of the Municipal Tort Claims Act, Minnesota Statutes Chapter 466, the Minnesota Tort Claims Act, Minnesota Statutes section 3.736, and other applicable laws. 4. TERM AND TERMINATION. The agreement becomes effective on the date of final signature. This agreement expires on December 31, 1 2017 . The agreement may be terminated with or without cause by 30-day written notice to the other Party. 5. ENTIRE AGREEMENT. This agreement supersedes any prior or contemporaneous representations or agreements, whether written or oral, between DNR and Governmental Unit, and contains the entire agreement with regard to the subject matter herein. 6. AMENDMENTS. This agreement may be amended only by the mutual consent of the parties in writing, signed by each of the Parties. 7. NOTICE. Any written communication required under this agreement will be addressed to the other Party as follows, except that any party may change its representative and/or address for notice by so notifying the other Party in writing: To DNR: Watercraft Inspection Program Coordinator Minnesota Department of Natural Resources 500 Lafayette Road, Box 25 St. Paul MN 55155-4025 To Governmental Unit: Name/Title: I Leslie Stovrin2, City of Eden Prairie Governmental Unit: City of Eden Prairie Address: 8080 Mitchell Road Address: 1 Eden Prairie,MN 55344 8. GOVERNING LAW AND VENUE. This agreement will be governed by and interpreted in accordance with the laws of the State of Minnesota. Venue for all legal proceedings out of this agreement, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 9. WAIVERS. The waiver by DNR or Governmental Unit of any breach or failure to comply with any provision of this agreement by the other Party will not be construed as nor will it constitute a continuing waiver of such provision or a waiver of any other breach of or failure to comply with any other provision of this agreement. Page 3 of 4 Delegation Agreement 10. STATE AUDITS. Under Minnesota Statutes section 16C.05, subd. 5, Governmental Unit books, records, documents, and accounting procedures and practices relevant to this agreement are subject to examination by the State and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of this agreement. 11. GOVERNMENT DATA PRACTICES. Governmental Unit and DNR must comply with the Minnesota Government Data Practices Act, Minnesota Statute Chapter 13, as it applies to all data provided by DNR under this agreement, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by Governmental Unit under this agreement. The civil remedies of Minnesota Statute section 13.08 apply to the release of the data referred to in this clause by either Governmental Unit or DNR. If Governmental Unit receives a request to release the data referred to in this Clause, Governmental Unit must immediately notify DNR. DNR will give Governmental Unit instructions concerning the release of the data to the requesting party before the date the Data Practices Act requires that the data be released. The state complies with Minnesota Government Date Practices Act regarding the released of any data created, collected, received, stored, used, maintained, or disseminated by the respective party under this agreement. The state and the local government unit shall let each other know when a data request has been received. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto execute and deliver this agreement. DEPARTMENT OF NATURAL RESOURCES By: Title: Director, Division of Ecological and Water Resources Date: COMMISSIONER OF ADMINISTRATION By: Title: Date: GOVERNMENTAL UNIT: I City of Eden Prairie By: By: Title: Title: Date: Date: Page 4 of 4 Delegation Agreement CITY COUNCIL AGENDA DATE: SECTION: Consent Agenda February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.F. Joe Dusek Approve Construction Contract with E.H. Public Works/Utilities Renner to Rehabilitate Well 10 Requested Action Move to: Approve a construction contract with E.H. Renner to rehabilitate well 10 in the amount of$37,800. Synopsis The City of Eden Prairie Utilities Division obtained proposals from three competent regional well drillers for the rehabilitation work at Municipal Well No. 10 located at 6910 Edenvale Boulevard. The least-cost proposal was offered by E.H Renner. Staff recommends acceptance of the proposal in the amount of$37,800 to be paid from the water enterprise fund. Background Information Municipal Well No. 10 was constructed in 1987 and provided a sustained pumping rate of 1400 gallons of water per minute for many years. Well 10 is due for routine inspection and maintenance services, with no planned upgrade to the pump or motor. The existing flow meter will be replaced with a magnetic flow meter. To evaluate our options for sustaining the performance of the well, we consulted with Advanced Engineering who recommended an economically feasible upgrade, with no pump or motor replacement. Attachment Recommendation Letter with bid tabulation Contract HE2S' January 19th 2016 Mr. Joe Dusek Water Treatment Supervisor City of Eden Prairie Re: Recommendation for Notice of Award Well No. 10 Downhole Rehabilitation Project City of Eden Prairie, Minnesota Dear Mr. Dusek: Pursuant to the authority of the Eden Prairie City Council, quotes were received electronically Friday January 15th at 2 PM. A total of three (3) quotes were received for the project. Pursuant to our review of the quotes received, it appears that all were completed in accordance with the requirements of the Request for Quotes (RFQ). A summary of the Quote Tabulation is below for your reference. Contractor Name Well No. 10 Rehabilitation Keys Well Drilling $38,240 E. H. Renner _ $37,800 Bergerson Caswell $42,995 Pending Eden Prairie's official's acceptance of the proposed contract prices, Advanced Engineering and Environmental Services, Inc. (AE2S) recommends that the City award the construction contract for Well No. 10 Rehabilitation to E. H. Renner since they were the lowest responsive and responsible bidder for $37,800. AE2S truly appreciates the opportunity to be able to work with the City of Eden Prairie on this project for the City. Should you or anyone at the City have any questions or comments regarding this letter, please feel free to contact me directly at 763-463-5036. Sincerely, Nancy Zeigler, PE Project Manger Standard Agreement for Contract Services This Agreement ("Agreement") is made on the 20`h day of January, 2016, between the City of Eden Prairie, Minnesota (hereinafter "City"), whose business address is 8080 Mitchell Road, Eden Prairie, MN 55344, and E.H. Renner, a Minnesota well driller (hereinafter "Contractor") whose business address is 15688 Jarvis NW, Elk River, MN 55330. Preliminary Statement The City has adopted a policy regarding the selection and hiring of contractors to provide a variety of services for City projects. That policy requires that persons, firms or corporations providing such services enter into written agreements with the City. The purpose of this Agreement is to set forth the terms and conditions for the provision of services by Contractor for service and upgrade of well 10 hereinafter referred to as the "Work". The City and Contractor agree as follows: 1. Scope of Work. The Contractor agrees to provide, perform and complete all the provisions of the Work in accordance with attached Exhibit A. The terms of this Agreement shall take precedence over any provisions of the Contractor's proposal and/or general conditions. 2. Effective Date and Term of Agreement. This Agreement shall become effective as of January 20, 2016. The Work shall be completed by June 1, 2016. 3. Obligations of Contractor. Contractor shall conform to the following obligations: a. Contractor shall provide the materials and services as set forth in Exhibit A. b. Contractor and its emploYees will park in service areas or lots and use entries and exits as designated by City. Contractor's personnel will contact the appropriate person (i.e. receptionist, maintenance personnel, security, etc,) immediately upon entering the building, and will sign in and out if required by City. c. Care, coordination and communication by Contractor is imperative so that guests and employees in the buildings are not disturbed or inconvenienced during the performance of the contracted services. d. Contractor's personnel must be neat appearing, wear a uniform and badge that clearly identifies them as a service contractor, and abide by City's no smoking policies. e. Contractor must honor the City's request to reassign an employee for cause. Cause may include performance below acceptable standards or failure to present the necessary image or attitude, in the judgment of the owner, to present a first class operation. f. When necessary, Contractor's personnel will be provided with keys or access cards in order to perform their work. Any lost keys or cards that result in rekeying a space or other cost to the City will be billed back to the Contractor. 4. City's Obligations. City will do or provide to Contractor the following: a. Provide access to City properties as appropriate. b. Provide restroom facilities as appropriate. 5. Compensation for Services. City agrees to pay the Contractor a fixed sum of $37,800 as full and complete payment for the labor, materials and services rendered pursuant to this Agreement and as described in Exhibit A. a. Any changes in the scope of the work which may result in an increase to the compensation due the Contractor shall require prior written approval by an authorized representative of the City or by the City Council. The City will not pay additional compensation for services that do not have prior written authorization. b. If Contractor is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance shall be extended by a period of time lost by reason of the delay. Contractor will be entitled to payment for its reasonable additional charges, if any, due to the delay. 6. Method of Payment. a. Contractor shall prepare and submit to City, on a monthly basis, itemized invoices setting forth work performed under this Contract. Invoices submitted shall be paid in the same manner as other claims made to the City. b. Claims. To receive any payment on this Contract, the invoice or bill must include the following signed and dated statement: "I declare under penalty of perjury that this account, claim, or demand is just and correct and that no part of it has been paid." c. No fuel surcharges or surcharges of any kind will be accepted nor will they be paid. 7. Project Manager. The Contractor has designated Katie Welle to Manage the Work. They shall be assisted by other staff members as necessary to facilitate the completion of the Work in accordance with the terms established herein. Contractor may not remove or replace the designated manager without the approval of the City. 8. Standard of Care. Contractor shall exercise the same degree of care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under similar circumstances in Hennepin County, Minnesota. Contractor shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Contractor's breach of this standard of care. Contractor shall put forth reasonable efforts to complete its duties in a timely manner. Contractor shall not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Contract. Contractor shall be responsible for costs, delays or damages arising from unreasonable delays in the performance of its duties. 9. Insurance. a. General Liability. Prior to starting the Work, Contractor shall procure, maintain and pay for such insurance as will protect against claims or loss which may arise out of operations by Contractor or by any subcontractor or by anyone employed by any of them or by anyone for whose acts any of them may be liable. Such insurance shall include, but not be limited to, minimum coverages and limits of liability specified in this Paragraph, or required by law. b. Contractor shall procure and maintain the following minimum insurance coverages and limits of liability for the Work: Worker's Compensation Statutory Limits Standard Agreement for Contract Services 2014.01 Page 2 of 8 Employer's Liability $500,000 each accident $500,000 disease policy limit $500,000 disease each employee Commercial General Liability $1,500,000 property damage and bodily injury per occurrence $2,000,000 general aggregate $2,000,000 Products —Completed Operations Aggregate $100,000 fire legal liability each occurrence $5,000 medical expense Comprehensive Automobile Liability $1,000,000 combined single limit each accident (shall include coverage for all owned, hired and non-owed vehicles.) Umbrella or Excess Liability $1,000,000 c. Commercial General Liability. The Commercial General Liability Policy shall be on ISO form CG 00 01 12 07 or CG 00 01 04 13, or the equivalent. Such insurance shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). There shall be no endorsement or modification of the Commercial General Liability form arising from pollution, explosion, collapse, underground property damage or work performed by subcontractors. d. Contractor shall maintain "stop gap" coverage if Contractor obtains Workers' Compensation coverage from any state fund if Employer's liability coverage is not available. e. All policies, except the Worker's Compensation Policy, shall name the "City of Eden Prairie" as an additional insured on ISO forms CG 20 10 07 04 or CG 20 10 04 13; and CG 20 37 07 04 or CG 20 37 04 13, or their equivalent. f. All policies shall apply on a "per project" basis. g. All polices shall contain a waiver of subrogation in favor of the City. h. All policies shall be primary and non-contributory. i. All polices, except the Worker's Compensation Policy, shall insure the defense and indemnity obligations assumed by Contractor under this Agreement. j. Contractor agrees to maintain all coverage required herein throughout the term of the Agreement and for a minimum of two (2) years following City's written acceptance of the Work. Standard Agreement for Contract Services 2014.01 Page 3 of 8 k. It shall be Contractor's responsibility to pay any retention or deductible for the coveraeges required herein. I. All policies shall contain a provision or endorsement that coverages afforded thereunder shall not be cancelled or non-renewed or restrictive modifications added, without thirty (30) days' prior notice to the City, except that if the cancellation or non- renewal is due to non-payment, the coverages may not be terminated or non- renewed without ten (10) days' prior notice to the City. m. Contractor shall maintain in effect all insurance coverages required under this Paragraph at Contractor's sole expense and with insurance companies licensed to do business in the state in Minnesota and having a current A.M. Best rating of no less than A-, unless specifically accepted by City in writing. n. A copy of the Contractor's Certificate of Insurance which evidences the compliance with this Paragraph, must be filed with City prior to the start of Contractor's Work. Upon request a copy of the Contractor's insurance declaration page, Rider and/or Endorsement, as applicable shall be provided. Such documents evidencing Insurance shall be in a form acceptable to City and shall provide satisfactory evidence that Contractor has complied with all insurance requirements. Renewal certificates shall be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such Certificate of Insurance, declaration page, Rider, Endorsement or certificates or other evidence of insurance, or to advise Contractor of any deficiencies in such documents and receipt thereof shall not relieve Contractor from, nor be deemed a waiver of, City's right to enforce the terms of Contractor's obligations hereunder. City reserves the right to examine any policy provided for under this paragraph. o. Effect of Contractor's Failure to Provide Insurance. If Contractor fails to provide the specified insurance, then Contractor will defend, indemnify and hold harmless the City, the City's officials, agents and employees from any loss, claim, liability and expense (including reasonable attorney's fees and expenses of litigation) to the extent necessary to afford the same protection as would have been provided by the specified insurance. Except to the extent prohibited by law, this indemnity applies regardless of any strict liability or negligence attributable to the City (including sole negligence) and regardless of the extent to which the underlying occurrence (i.e., the event giving rise to a claim which would have been covered by the specified insurance) is attributable to the negligent or otherwise wrongful act or omission (including breach of contract) of Contractor, its subcontractors, agents, employees or delegates. Contractor agrees that this indemnity shall be construed and applied in favor of indemnification. Contractor also agrees that if applicable law limits or precludes any aspect of this indemnity, then the indemnity will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnity continues until all applicable statutes of limitation have run. If a claim arises within the scope of the stated indemnity, the City may require Contractor to: i. Furnish and pay for a surety bond, satisfactory to the City, guaranteeing performance of the indemnity obligation; or ii. Furnish a written acceptance of tender of defense and indemnity from Contractor's insurance company. Standard Agreement for Contract Services 2014.01 Page 4 of 8 Contractor will take the action required by the City within fifteen (15) days of receiving notice from the City. 10. Indemnification. Contractor will defend and indemnify City, its officers, agents, and employees and hold them harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney's fees paid, incurred or for which it may be liable resulting from any breach of this Agreement by Contractor, its agents, contractors and employees, or any negligent or intentional act or omission performed, taken or not performed or taken by Contractor, its agents, contractors and employees, relative to this Agreement. City will indemnify and hold Contractor harmless from and against any loss for injuries or damages arising out of the negligent acts of the City, its officers, agents or employees. 11. Termination. a. This Agreement may be terminated at any time by either party for breach or non- performance of any provision of this Agreement in accordance with the following. The party ("notifying party") who desires to terminate this Agreement for breach or non-performance of the other party ("notified party") shall give the notified party notice in writing of the notifying party's desire to terminate this Agreement describing the breach or non-performance of this Agreement entitling it to do so. The notified party shall have five (5) days from the date of such notice to cure the breach or non- performance. Upon failure of the notified party to do so, this Agreement shall automatically terminate. b. Upon the termination of this Agreement, whether by expiration of the original or any extended term or terms hereof, or for any other reason, Contractor shall have the right, within a reasonable time after such termination to remove from city's premises any and all of Contractor's equipment and other property. Except for liability resulting from acts or omissions of a party, arising, taken or omitted prior to such termination, the rights and obligations of each party resulting from this Agreement shall cease upon such termination. Any prior liability of a party shall survive termination of this Agreement. c. In the event of dissolution, termination of existence, insolvency, appointment of a receiver, assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency law, or the service of any warrant, attachment, levy or similar process involving Contractor, City may, at its option in addition to any other remedy to which City may be entitled, immediately terminate this Agreement by notice to Contractor, in which event, this Agreement shall terminate on the notice becoming effective. 1 12. Notice. Required notices to the Contractor shall be in writing, and shall be either hand- delivered to the Contractor, its employees or agents, or mailed to the Contractor by certified mail at the following address: Katie Welle 15688 Jarvis Street NW Elk River, MN 55330 Standard Agreement for Contract Services 2014.01 Page 5 of 8 Notices to the City shall be in writing and shall be either hand-delivered or mailed to the City by certified mail at the following address: Joe Dusek City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 Notices shall be deemed effective on the date of receipt. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. 13. Independent Contractor. Contractor is an independent contractor engaged by City to perform the services described herein and as such (i) shall employ such persons as it shall deem necessary and appropriate for the performance of its obligations pursuant to this Agreement, who shall be employees, and under the direction, of Contractor and in no respect employees of City, and (ii) shall have no authority to employ persons, or make purchases of equipment on behalf of City, or otherwise bind or obligate City. No statement herein shall be construed so as to find the Contractor an employee of the City. 14. Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 15. Audit Disclosure and Data Practices. Any reports, information, data, etc. given to, or prepared or assembled by the Contractor under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior written approval. The books, records, documents and accounting procedures and practices of the Contractor or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined in the Data Practices Act Section 13.02, Subd 7, which is created, collected, received, stored, used, maintained, or disseminated by Contractor in performing any of the functions of the City during performance of this Agreement is subject to the requirements of the Data Practice Act and Contractor shall comply with those requirements as if it were a government entity. All subcontracts entered into by Contractor in relation to this Agreement shall contain similar Data Practices Act compliance language. 16. Non-Discrimination. During the performance of this Agreement, the Contractor shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age. The Contractor shall post in places available to employees and applicants for employment, notices setting forth the provision of this non- discrimination clause and stating that all qualified applicants will receive consideration for employment. The Contractor shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. The Contractor further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. Standard Agreement for Contract Services 2014.01 Page 6 of 8 17. Conflicts. No salaried officer or employee of the City and no member of the Council, or Commission, or Board of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the agreement void. 18. Employees. Contractor agrees not to hire any employee or former employee of City and City agrees not to hire any employee or former employee of Contractor prior to termination of this Agreement and for one (1) year thereafter, without prior written consent of the former employer in each case. 19. Rights and Remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. 20. Damages. In the event of a breach of this Agreement by the City, Contractor shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 21. Enforcement. The Contractor shall reimburse the City for all costs and expenses, including without limitation, attorneys' fees paid or incurred by the City in connection with the enforcement by the City during the term of this Agreement or thereafter of any of the rights or remedies of the City under this Agreement. 22. Mediation. Each dispute, claim or controversy arising from or related to this agreement shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable actions by either party. Unless the parties agree otherwise, the mediation shall be in accordance with the Commercial Mediation Procedures of the American Arbitration Association then currently in effect. A request for mediation shall be filed in writing with the American Arbitration Association and the other party. No arbitration or legal or equitable action may be instituted for a period of 90 days from the filing of the request for mediation unless a longer period of time is provided by agreement of the parties. Cost of mediation shall be shared equally between the parties. Mediation shall be held in the City of Eden Prairie unless another location is mutually agreed upon by the parties. The parties shall memorialize any agreement resulting from the mediation in a mediated settlement agreement, which agreement shall be enforceable as a settlement in any court having jurisdiction thereof. 23. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. 24. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Contract. 25. Waiver. No action nor failure to act by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing. 26. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between Standard Agreement for Contract Services 2014.01 Page 7 of 8 the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 27. Compliance with Laws and Regulations. In providing services hereunder, the Contractor shall abide by statutes, ordinances, rules, and regulations pertaining to the provisions of services to be provided. Any violation of statutes, ordinances, rules and regulations pertaining to the services to be provided shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. Executed as of the day and year first written above. CITY OF EDEN PRAIRIE Mayor City Manager CONTRACTOR By: Its: Standard Agreement for Contract Services 2014.01 Page 8 of 8 Exhibit A Perform well inspection and rehabilitation for well 10, which will include all materials, supplies, and labor. CITY COUNCIL AGENDA DATE: SECTION: Consent Agenda February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.G. Joe Dusek Approve Construction Contract with Keys Public Works/Utilities Well Drilling to Rehabilitate Well 14 Requested Action Move to: Approve construction contract with Keys Well Drilling to service well 14 in the amount of$36,815. Synopsis The City of Eden Prairie Utilities Division obtained proposals from three competent regional well drillers for the rehabilitation work at Municipal Well No. 14 located at 14550 Lone Oak Road. The least-cost proposal was offered by Keys Well Drilling. Staff recommends acceptance of the proposal in the amount of$36,815 to be paid from the water enterprise fund. Background Information Municipal Well No. 14 was constructed in 2000 and provided a sustained pumping rate of 1400 gallons of water per minute for many years. Well 14 is due for routine inspection and maintenance services, with no planned upgrade to the pump or motor. The existing flow meter will be replaced with a magnetic flow meter. To evaluate our options for sustaining the performance of the well, we consulted with Advanced Engineering who recommended an economically feasible upgrade, with no pump or motor replacement. Attachment Recommendation Letter with bid tabulation Contract • . � HE2S' January 19th 2016 Mr. Joe Dusek Water Treatment Supervisor City of Eden Prairie Re: Recommendation for Notice of Award Well No. 14 Downhole Rehabilitation Project City of Eden Prairie, Minnesota Dear Mr. Dusek: Pursuant to the authority of the Eden Prairie City Council, quotes were received electronically Friday January 15th at 2 PM. A total of three (3) quotes were received for the project. Pursuant to our review of the quotes received, it appears that all were completed in accordance with the requirements of the Request for Quotes (RFQ). A summary of the Quote Tabulation is below for your reference. Contractor Name Well No. 14 Rehabilitation Keys Well Drilling $36,815 E. H. Renner $37,265 Bergerson Caswell $40,295 Pending Eden Prairie's official's acceptance of the proposed contract prices, Advanced Engineering and Environmental Services, Inc. (AE2S) recommends that the City award the construction contract for Well No. 14 Rehabilitation to Keys Well Drilling since they were the lowest responsive and responsible bidder for $36,815. AE2S truly appreciates the opportunity to be able to work with the City of Eden Prairie on this project for the City. Should you or anyone at the City have any questions or comments regarding this letter, please feel free to contact me directly at 763-463-5036. Sincerely, Nancy Zeigler, PE Project Manger Standard Agreement for Contract Services This Agreement ("Agreement") is made on the 20th day of January, 2016, between the City of Eden Prairie, Minnesota (hereinafter "City"), whose business address is 8080 Mitchell Road, Eden Prairie, MN 55344, and Keys Well Drilling, a Minnesota well driller (hereinafter "Contractor") whose business address is 1156 Homer Street, St. Paul, MN 55116. Preliminary Statement The City has adopted a policy regarding the selection and hiring of contractors to provide a variety of services for City projects. That policy requires that persons, firms or corporations providing such services enter into written agreements with the City. The purpose of this Agreement is to set forth the terms and conditions for the provision of services by Contractor for service and upgrade of well 14 hereinafter referred to as the "Work". The City and Contractor agree as follows: 1. Scope of Work. The Contractor agrees to provide, perform and complete all the provisions of the Work in accordance with attached Exhibit A. The terms of this Agreement shall take precedence over any provisions of the Contractor's proposal and/or general conditions. 2. Effective Date and Term of Agreement. This Agreement shall become effective as of January 20, 2016. The Work shall be completed by June 1, 2016. 3. Obligations of Contractor. Contractor shall conform to the following obligations: a. Contractor shall provide the materials and services as set forth in Exhibit A. b. Contractor and its employees will park in service areas or lots and use entries and exits as designated by City. Contractor's personnel will contact the appropriate person (i.e. receptionist, maintenance personnel, security, etc,) immediately upon entering the building, and will sign in and out if required by City. c. Care, coordination and communication by Contractor is imperative so that guests and employees in the buildings are not disturbed or inconvenienced during the performance of the contracted services. d. Contractor's personnel must be neat appearing, wear a uniform and badge that clearly identifies them as a service contractor, and abide by City's no smoking policies. e. Contractor must honor the City's request to reassign an employee for cause. Cause may include performance below acceptable standards or failure to present the necessary image or attitude, in the judgment of the owner, to present a first class operation. f. When necessary, Contractor's personnel will be provided with keys or access cards in order to perform their work. Any lost keys or cards that result in rekeying a space or other cost to the City will be billed back to the Contractor. 4. City's Obligations. City will do or provide to Contractor the following: a. Provide access to City properties as appropriate. b. Provide restroom facilities as appropriate. 5. Compensation for Services. City agrees to pay the Contractor a fixed sum of $36815.00 as full and complete payment for the labor, materials and services rendered pursuant to this Agreement and as described in Exhibit A. a. Any changes in the scope of the work which may result in an increase to the compensation due the Contractor shall require prior written approval by an authorized representative of the City or by the City Council. The City will not pay additional compensation for services that do not have prior written authorization. b. If Contractor is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance shall be extended by a period of time lost by reason of the delay. Contractor will be entitled to payment for its reasonable additional charges, if any, due to the delay. 6. Method of Payment. a. Contractor shall prepare and submit to City, on a monthly basis, itemized invoices setting forth work performed under this Contract. Invoices submitted shall be paid in the same manner as other claims made to the City. b. Claims. To receive any payment on this Contract, the invoice or bill must include the following signed and dated statement: "I declare under penalty of perjury that this account, claim, or demand is just and correct and that no part of it has been paid." c. No fuel surcharges or surcharges of any kind will be accepted nor will they be paid. 7. Project Manager. The Contractor has designated Nick Keys to Manage the Work. They shall be assisted by other staff members as necessary to facilitate the completion of the Work in accordance with the terms established herein. Contractor may not remove or replace the designated manager without the approval of the City. 8. Standard of Care. Contractor shall exercise the same degree of care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under similar circumstances in Hennepin County, Minnesota. Contractor shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Contractor's breach of this standard of care. Contractor shall put forth reasonable efforts to complete its duties in a timely manner. Contractor shall not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Contract. Contractor shall be responsible for costs, delays or damages arising from unreasonable delays in the performance of its duties. 9. Insurance. a. General Liability. Prior to starting the Work, Contractor shall procure, maintain and pay for such insurance as will protect against claims or loss which may arise out of operations by Contractor or by any subcontractor or by anyone employed by any of them or by anyone for whose acts any of them may be liable. Such insurance shall include, but not be limited to, minimum coverages and limits of liability specified in this Paragraph, or required by law. b. Contractor shall procure and maintain the following minimum insurance coverages and limits of liability for the Work: Worker's Compensation Statutory Limits Standard Agreement for Contract Services 2014.01 Page 2 of 8 Employer's Liability $500,000 each accident $500,000 disease policy limit $500,000 disease each employee Commercial General Liability $1,500,000 property damage and bodily injury per occurrence $2,000,000 general aggregate $2,000,000 Products—Completed Operations Aggregate $100,000 fire legal liability each occurrence $5,000 medical expense Comprehensive Automobile Liability $1,000,000 combined single limit each accident (shall include coverage for all owned, hired and non-owed vehicles.) Umbrella or Excess Liability $1,000,000 c. Commercial General Liability. The Commercial General Liability Policy shall be on ISO form CG 00 01 12 07 or CG 00 01 04 13, or the equivalent. Such insurance shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). There shall be no endorsement or modification of the Commercial General Liability form arising from pollution, explosion, collapse, underground property damage or work performed by subcontractors. d. Contractor shall maintain "stop gap" coverage if Contractor obtains Workers' Compensation coverage from any state fund if Employer's liability coverage is not available. e. All policies, except the Worker's Compensation Policy, shall name the "City of Eden Prairie" as an additional insured on ISO forms CG 20 10 07 04 or CG 20 10 04 13; and CG 20 37 07 04 or CG 20 37 04 13, or their equivalent. f. All policies shall apply on a "per project" basis. g. All polices shall contain a waiver of subrogation in favor of the City. h. All policies shall be primary and non-contributory. i. All polices, except the Worker's Compensation Policy, shall insure the defense and indemnity obligations assumed by Contractor under this Agreement. j. Contractor agrees to maintain all coverage required herein throughout the term of the Agreement and for a minimum of two (2) years following City's written acceptance of the Work. Standard Agreement for Contract Services 2014.01 Page 3 of 8 k. It shall be Contractor's responsibility to pay any retention or deductible for the coveraeges required herein. I. All policies shall contain a provision or endorsement that coverages afforded thereunder shall not be cancelled or non-renewed or restrictive modifications added, without thirty (30) days' prior notice to the City, except that if the cancellation or non- renewal is due to non-payment, the coverages may not be terminated or non- renewed without ten (10) days' prior notice to the City. m. Contractor shall maintain in effect all insurance coverages required under this Paragraph at Contractor's sole expense and with insurance companies licensed to do business in the state in Minnesota and having a current A.M. Best rating of no less than A-, unless specifically accepted by City in writing. n. A copy of the Contractor's Certificate of Insurance which evidences the compliance with this Paragraph, must be filed with City prior to the start of Contractor's Work. Upon request a copy of the Contractor's insurance declaration page, Rider and/or Endorsement, as applicable shall be provided. Such documents evidencing Insurance shall be in a form acceptable to City and shall provide satisfactory evidence that Contractor has complied with all insurance requirements. Renewal certificates shall be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such Certificate of Insurance, declaration page, Rider, Endorsement or certificates or other evidence of insurance, or to advise Contractor of any deficiencies in such documents and receipt thereof shall not relieve Contractor from, nor be deemed a waiver of, City's right to enforce the terms of Contractor's obligations hereunder. City reserves the right to examine any policy provided for under this paragraph. o. Effect of Contractor's Failure to Provide Insurance. If Contractor fails to provide the specified insurance, then Contractor will defend, indemnify and hold harmless the City, the City's officials, agents and employees from any loss, claim, liability and expense (including reasonable attorney's fees and expenses of litigation) to the extent necessary to afford the same protection as would have been provided by the specified insurance. Except to the extent prohibited by law, this indemnity applies regardless of any strict liability or negligence attributable to the City (including sole negligence) and regardless of the extent to which the underlying occurrence (i.e., the event giving rise to a claim which would have been covered by the specified insurance) is attributable to the negligent or otherwise wrongful act or omission (including breach of contract) of Contractor, its subcontractors, agents, employees or delegates. Contractor agrees that this indemnity shall be construed and applied in favor of indemnification. Contractor also agrees that if applicable law limits or precludes any aspect of this indemnity, then the indemnity will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnity continues until all applicable statutes of limitation have run. If a claim arises within the scope of the stated indemnity, the City may require Contractor to: i. Furnish and pay for a surety bond, satisfactory to the City, guaranteeing performance of the indemnity obligation; or ii. Furnish a written acceptance of tender of defense and indemnity from Contractor's insurance company. Standard Agreement for Contract Services 2014.01 Page 4 of 8 Contractor will take the action required by the City within fifteen (15) days of receiving notice from the City. 10. Indemnification. Contractor will defend and indemnify City, its officers, agents, and employees and hold them harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney's fees paid, incurred or for which it may be liable resulting from any breach of this Agreement by Contractor, its agents, contractors and employees, or any negligent or intentional act or omission performed, taken or not performed or taken by Contractor, its agents, contractors and employees, relative to this Agreement. City will indemnify and hold Contractor harmless from and against any loss for injuries or damages arising out of the negligent acts of the City, its officers, agents or employees. 11. Termination. a. This Agreement may be terminated at any time by either party for breach or non- performance of any provision of this Agreement in accordance with the following. The party ("notifying party") who desires to terminate this Agreement for breach or non-performance of the other party ("notified party") shall give the notified party notice in writing of the notifying party's desire to terminate this Agreement describing the breach or non-performance of this Agreement entitling it to do so. The notified party shall have five (5) days from the date of such notice to cure the breach or non- performance. Upon failure of the notified party to do so, this Agreement shall automatically terminate. b. Upon the termination of this Agreement, whether by expiration of the original or any extended term or terms hereof, or for any other reason, Contractor shall have the right, within a reasonable time after such termination to remove from City's premises any and all of Contractor's equipment and other property. Except for liability resulting from acts or omissions of a party, arising, taken or omitted prior to such termination, the rights and obligations of each party resulting from this Agreement shall cease upon such termination. Any prior liability of a party shall survive termination of this Agreement. c. In the event of dissolution, termination of existence, insolvency, appointment of a receiver, assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency law, or the service of any warrant, attachment, levy or similar process involving Contractor, City may, at its option in addition to any other remedy to which City may be entitled, immediately terminate this Agreement by notice to Contractor, in which event, this Agreement shall terminate on the notice becoming effective. 12. Notice. Required notices to the Contractor shall be in writing, and shall be either hand- delivered to the Contractor, its employees or agents, or mailed to the Contractor by certified mail at the following address: Nick Keys 1156 Homer Street St. Paul, MN 55116 Standard Agreement for Contract Services 2014.01 Page 5 of 8 Notices to the City shall be in writing and shall be either hand-delivered or mailed to the City by certified mail at the following address: Joe Dusek City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 Notices shall be deemed effective on the date of receipt. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. 13. Independent Contractor. Contractor is an independent contractor engaged by City to perform the services described herein and as such (i) shall employ such persons as it shall deem necessary and appropriate for the performance of its obligations pursuant to this Agreement, who shall be employees, and under the direction, of Contractor and in no respect employees of City, and (ii) shall have no authority to employ persons, or make purchases of equipment on behalf of City, or otherwise bind or obligate City. No statement herein shall be construed so as to find the Contractor an employee of the City. 14. Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 15. Audit Disclosure and Data Practices. Any reports, information, data, etc. given to, or prepared or assembled by the Contractor under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior written approval. The books, records, documents and accounting procedures and practices of the Contractor or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined in the Data Practices Act Section 13.02, Subd 7, which is created, collected, received, stored, used, maintained, or disseminated by Contractor in performing any of the functions of the City during performance of this Agreement is subject to the requirements of the Data Practice Act and Contractor shall comply with those requirements as if it were a government entity. All subcontracts entered into by Contractor in relation to this Agreement shall contain similar Data Practices Act compliance language. 16. Non-Discrimination. During the performance of this Agreement, the Contractor shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age. The Contractor shall post in places available to employees and applicants for employment, notices setting forth the provision of this non- discrimination clause and stating that all qualified applicants will receive consideration for employment. The Contractor shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. The Contractor further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. Standard Agreement for Contract Services 2014.01 Page 6 of 8 17. Conflicts. No salaried officer or employee of the City and no member of the Council, or Commission, or Board of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the agreement void. 18. Employees. Contractor agrees not to hire any employee or former employee of City and City agrees not to hire any employee or former employee of Contractor prior to termination of this Agreement and for one (1) year thereafter, without prior written consent of the former employer in each case. 19. Rights and Remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. 20. Damages. In the event of a breach of this Agreement by the City, Contractor shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 21. Enforcement. The Contractor shall reimburse the City for all costs and expenses, including without limitation, attorneys' fees paid or incurred by the City in connection with the enforcement by the City during the term of this Agreement or thereafter of any of the rights or remedies of the City under this Agreement. 22. Mediation. Each dispute, claim or controversy arising from or related to this agreement shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable actions by either party. Unless the parties agree otherwise, the mediation shall be in accordance with the Commercial Mediation Procedures of the American Arbitration Association then currently in effect. A request for mediation shall be filed in writing with the American Arbitration Association and the other party. No arbitration or legal or equitable action may be instituted for a period of 90 days from the filing of the request for mediation unless a longer period of time is provided by agreement of the parties. Cost of mediation shall be shared equally between the parties. Mediation shall be held in the City of Eden Prairie unless another location is mutually agreed upon by the parties. The parties shall memorialize any agreement resulting from the mediation in a mediated settlement agreement, which agreement shall be enforceable as a settlement in any court having jurisdiction thereof. 23. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. 24. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Contract. 25. Waiver. No action nor failure to act by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing. 26. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between Standard Agreement for Contract Services 2014.01 Page 7 of 8 the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 27. Compliance with Laws and Regulations. In providing services hereunder, the Contractor shall abide by statutes, ordinances, rules, and regulations pertaining to the provisions of services to be provided. Any violation of statutes, ordinances, rules and regulations pertaining to the services to be provided shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. Executed as of the day and year first written above. CITY OF EDEN PRAIRIE Mayor City Manager CONTRACTOR By: Its: Standard Agreement for Contract Services 2014.01 Page 8 of 8 Exhibit A Perform well inspection and rehabilitation for well 14, which will include all materials, supplies, and labor. CITY COUNCIL AGENDA DATE: SECTION: Consent Agenda February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.H. Joe Dusek Award contract to Premier Electrical Public Works/Utilities Corporation for the replacement of well 12 VFD, well 12 control upgrades, and mag meter wiring on wells 10 and 14 Requested Action Move to: Award contract to Premier Electrical Corporation for the replacement of the Variable Frequency Drive (VFD) at well 12, control upgrade at well 12, and electrical work associated with the mag meter installations at wells 10 and 14 in the amount of$51,485. Synopsis The existing VFD at Eden Prairie's well 12 location has failed beyond repair. The City of Eden Prairie Utilities Division obtained proposals from three competent regional electrical contractors for the well 12 VFD replacement, control upgrades, and well 10 and 14 electrical work associated with the mag meter installations. The least-cost proposal was offered by Premier Electrical Corporation. Staff recommends acceptance of the proposal in the amount of$51,485 to be paid from the water enterprise fund. Background Information Variable Frequency Drives, or VFD's are electrical devices which enable motors to be operated at any speed. To save energy consumption and better manage the pumping of water from our wells, Eden Prairie began installing VFD's in the 1990's. The typical life expectancy of a VFD is approximately 12-15 years. To evaluate our options for replacing the VFD, we consulted with Advanced Engineering, who recommended a full VFD replacement and control upgrade. Attachment Recommendation Letter with bid tabulation • Er Ezs January 19"1' 2016 Mr, Joe Dusek Water Treatment Supervisor City of Eden Prairie Re: Recommendation for Notice of Award Well 12 VFD Replacement and control upgrades & Meter Connections at 10 &14 Electrical Rehabilitation Project City of Eden Prairie, Minnesota Dear Mr. Dusek: Pursuant to the authority of the Eden Prairie City Council, quotes were received electronically Friday January 151" at 2:00 PM CST electronically sent to you. A total of three (3) quotes were received for the project. Pursuant to our review of the quotes received, it appears that all were completed in accordance with the requirements of the RFQ. A detailed copy of the Bid Opening Tabulation is below for your reference. Contractor Name Base Bid (VFD and Meters) Well 12 Controls Alternate Electrical Installation and $42,000 $14,000 Maintenance Co. _ Prairie Electric Co. $47,986 $12,990 Premier Electrical Co. $38,685 $12,800 Pending Eden Prairie's official's acceptance of the proposed contract price, Advanced Engineering and Environmental Services, Inc. (AE2S) recommends that the City award a construction contract to Premier Electric Co. Premier was the lowest responsive and responsible bidder for a Lump Sum Bid price of $38,685 (Base Bid) and $12,800 (Controls Alternate). AE2S truly appreciates the opportunity to be able to work with the City of Eden Prairie on this project for the City. Should you or anyone at the City have any questions or comments regarding this letter, please feel free to contact me directly. Sincerely, Charles D. Haupert, PE Electrical Engineer Standard Agreement for Contract Services This Agreement ("Agreement") is made on the 20th day of January, 2016, between the City of Eden Prairie, Minnesota (hereinafter "City"), whose business address is 8080 Mitchell Road, Eden Prairie, MN 55344, and Premier Electrical Corporation, a Minnesota electrical contractor (hereinafter "Contractor") whose business address is 4401 85th Ave. NO., Brooklyn Park, MN 55443-1937.. Preliminary Statement The City has adopted a policy regarding the selection and hiring of contractors to provide a variety of services for City projects. That policy requires that persons, firms or corporations providing such services enter into written agreements with the City. The purpose of this Agreement is to set forth the terms and conditions for the provision of services by Contractor for well 12 VFD Replacement, well 12 control upgrade, and well 10 and well 14 flow meter installation hereinafter referred to as the "Work". The City and Contractor agree as follows: 1. Scope of Work. The Contractor agrees to provide, perform and complete all the provisions of the Work in accordance with attached Exhibit A. The terms of this Agreement shall take precedence over any provisions of the Contractor's proposal and/or general conditions. 2. Effective Date and Term of Agreement. This Agreement shall become effective as of January 20, 2016. The Work shall be completed by June 1, 2016. 3. Obligations of Contractor. Contractor shall conform to the following obligations: a. Contractor shall provide the materials and services as set forth in Exhibit A. b. Contractor and its employees will park in service areas or lots and use entries and exits as designated by City. Contractor's personnel will contact the appropriate person (i.e. receptionist, maintenance personnel, security, etc,) immediately upon entering the building, and will sign in and out if required by City. c. Care, coordination and communication by Contractor is imperative so that guests and employees in the buildings are not disturbed or inconvenienced during the performance of the contracted services. d. Contractor's personnel must be neat appearing, wear a uniform and badge that clearly identifies them as a service contractor, and abide by City's no smoking policies. e. Contractor must honor the City's request to reassign an employee for cause. Cause may include performance below acceptable standards or failure to present the necessary image or attitude, in the judgment of the owner, to present a first class operation. f. When necessary, Contractor's personnel will be provided with keys or access cards in order to perform their work. Any lost keys or cards that result in rekeying a space or other cost to the City will be billed back to the Contractor. 4. City's Obligations. City will do or provide to Contractor the following: a. Provide access to City properties as appropriate. b. Provide restroom facilities as appropriate. 5. Compensation for Services. City agrees to pay the Contractor a fixed sum of $51,485.00 as full and complete payment for the labor, materials and services rendered pursuant to this Agreement and as described in Exhibit A. a. Any changes in the scope of the work which may result in an increase to the compensation due the Contractor shall require prior written approval by an authorized representative of the City or by the City Council. The City will not pay additional compensation for services that do not have prior written authorization. b. If Contractor is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance shall be extended by a period of time lost by reason of the delay. Contractor will be entitled to payment for its reasonable additional charges, if any, due to the delay. 6. Method of Payment. a. Contractor shall prepare and submit to City, on a monthly basis, itemized invoices setting forth work performed under this Contract. Invoices submitted shall be paid in the same manner as other claims made to the City. b. Claims. To receive any payment on this Contract, the invoice or bill must include the following signed and dated statement: "I declare under penalty of perjury that this account, claim, or demand is just and correct and that no part of it has been paid." c. No fuel surcharges or surcharges of any kind will be accepted nor will they be paid. 7. Project Manager. The Contractor has designated Steve Swanson to Manage the Work. They shall be assisted by other staff members as necessary to facilitate the completion of the Work in accordance with the terms established herein. Contractor may not remove or replace the designated manager without the approval of the City. 8. Standard of Care. Contractor shall exercise the same degree of care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under similar circumstances in Hennepin County, Minnesota. Contractor shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Contractor's breach of this standard of care. Contractor shall put forth reasonable efforts to complete its duties in a timely manner. Contractor shall not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Contract. Contractor shall be responsible for costs, delays or damages arising from unreasonable delays in the performance of its duties. 9. Insurance. a. General Liability. Prior to starting the Work, Contractor shall procure, maintain and pay for such insurance as will protect against claims or loss which may arise out of operations by Contractor or by any subcontractor or by anyone employed by any of them or by anyone for whose acts any of them may be liable. Such insurance shall include, but not be limited to, minimum coverages and limits of liability specified in this Paragraph, or required by law. b. Contractor shall procure and maintain the following minimum insurance coverages and limits of liability for the Work: Worker's Compensation Statutory Limits Standard Agreement for Contract Services 2014.01 Page 2 of 8 Employer's Liability $500,000 each accident $500,000 disease policy limit $500,000 disease each employee Commercial General Liability $1,500,000 property damage and bodily injury per occurrence $2,000,000 general aggregate $2,000,000 Products —Completed Operations Aggregate $100,000 fire legal liability each occurrence $5,000 medical expense Comprehensive Automobile Liability $1,000,000 combined single limit each accident (shall include coverage for all owned, hired and non-owed vehicles.) Umbrella or Excess Liability $1,000,000 c. Commercial General Liability. The Commercial General Liability Policy shall be on ISO form CG 00 01 12 07 or CG 00 01 04 13, or the equivalent. Such insurance shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). There shall be no endorsement or modification of the Commercial General Liability form arising from pollution, explosion, collapse, underground property damage or work performed by subcontractors. d. Contractor shall maintain "stop gap" coverage if Contractor obtains Workers' Compensation coverage from any state fund if Employer's liability coverage is not available. e. All policies, except the Worker's Compensation Policy, shall name the "City of Eden Prairie" as an additional insured on ISO forms CG 20 10 07 04 or CG 20 10 04 13; and CG 20 37 07 04 or CG 20 37 04 13, or their equivalent. f. All policies shall apply on a "per project" basis. g. All polices shall contain a waiver of subrogation in favor of the City. h. All policies shall be primary and non-contributory. i. All polices, except the Worker's Compensation Policy, shall insure the defense and indemnity obligations assumed by Contractor under this Agreement. j. Contractor agrees to maintain all coverage required herein throughout the term of the Agreement and for a minimum of two (2) years following City's written acceptance of the Work. Standard Agreement for Contract Services 2014.01 Page 3 of 8 k. It shall be Contractor's responsibility to pay any retention or deductible for the coveraeges required herein. I. All policies shall contain a provision or endorsement that coverages afforded thereunder shall not be cancelled or non-renewed or restrictive modifications added, without thirty (30) days' prior notice to the City, except that if the cancellation or non- renewal is due to non-payment, the coverages may not be terminated or non- renewed without ten (10) days' prior notice to the City. m. Contractor shall maintain in effect all insurance coverages required under this Paragraph at Contractor's sole expense and with insurance companies licensed to do business in the state in Minnesota and having a current A.M. Best rating of no less than A-, unless specifically accepted by City in writing. n. A copy of the Contractor's Certificate of Insurance which evidences the compliance with this Paragraph, must be filed with City prior to the start of Contractor's Work. Upon request a copy of the Contractor's insurance declaration page, Rider and/or Endorsement, as applicable shall be provided. Such documents evidencing Insurance shall be in a form acceptable to City and shall provide satisfactory evidence that Contractor has complied with all insurance requirements. Renewal certificates shall be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such Certificate of Insurance, declaration page, Rider, Endorsement or certificates or other evidence of insurance, or to advise Contractor of any deficiencies in such documents and receipt thereof shall not relieve Contractor from, nor be deemed a waiver of, City's right to enforce the terms of Contractor's obligations hereunder. City reserves the right to examine any policy provided for under this paragraph. o. Effect of Contractor's Failure to Provide Insurance. If Contractor fails to provide the specified insurance, then Contractor will defend, indemnify and hold harmless the City, the City's officials, agents and employees from any loss, claim, liability and expense (including reasonable attorney's fees and expenses of litigation) to the extent necessary to afford the same protection as would have been provided by the specified insurance. Except to the extent prohibited by law, this indemnity applies regardless of any strict liability or negligence attributable to the City (including sole negligence) and regardless of the extent to which the underlying occurrence (i.e., the event giving rise to a claim which would have been covered by the specified insurance) is attributable to the negligent or otherwise wrongful act or omission (including breach of contract) of Contractor, its subcontractors, agents, employees or delegates. Contractor agrees that this indemnity shall be construed and applied in favor of indemnification. Contractor also agrees that if applicable law limits or precludes any aspect of this indemnity, then the indemnity will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnity continues until all applicable statutes of limitation have run. If a claim arises within the scope of the stated indemnity, the City may require Contractor to: i. Furnish and pay for a surety bond, satisfactory to the City, guaranteeing performance of the indemnity obligation; or ii. Furnish a written acceptance of tender of defense and indemnity from Contractor's insurance company. Standard Agreement for Contract Services 2014.01 Page 4 of 8 Contractor will take the action required by the City within fifteen (15) days of receiving notice from the City. 10. Indemnification. Contractor will defend and indemnify City, its officers, agents, and employees and hold them harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney's fees paid, incurred or for which it may be liable resulting from any breach of this Agreement by Contractor, its agents, contractors and employees, or any negligent or intentional act or omission performed, taken or not performed or taken by Contractor, its agents, contractors and employees, relative to this Agreement. City will indemnify and hold Contractor harmless from and against any loss for injuries or damages arising out of the negligent acts of the City, its officers, agents or employees. 11. Termination. a. This Agreement may be terminated at any time by either party for breach or non- performance of any provision of this Agreement in accordance with the following. The party ("notifying party") who desires to terminate this Agreement for breach or non-performance of the other party ("notified party") shall give the notified party notice in writing of the notifying party's desire to terminate this Agreement describing the breach or non-performance of this Agreement entitling it to do so. The notified party shall have five (5) days from the date of such notice to cure the breach or non- performance. Upon failure of the notified party to do so, this Agreement shall automatically terminate. b. Upon the termination of this Agreement, whether by expiration of the original or any extended term or terms hereof, or for any other reason, Contractor shall have the right, within a reasonable time after such termination to remove from City's premises any and all of Contractor's equipment and other property. Except for liability resulting from acts or omissions of a party, arising, taken or omitted prior to such termination, the rights and obligations of each party resulting from this Agreement shall cease upon such termination. Any prior liability of a party shall survive termination of this Agreement. c. In the event of dissolution, termination of existence, insolvency, appointment of a receiver, assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency law, or the service of any warrant, attachment, levy or similar process involving Contractor, City may, at its option in addition to any other remedy to which City may be entitled, immediately terminate this Agreement by notice to Contractor, in which event, this Agreement shall terminate on the notice becoming effective. 12. Notice, Required notices to the Contractor shall be in writing, and shall be either hand- delivered to the Contractor, its employees or agents, or mailed to the Contractor by certified mail at the following address: Steve Swanson 4401 85th Ave NO Brooklyn Park, MN 55443 Standard Agreement for Contract Services 2014.01 Page 5 of 8 Notices to the City shall be in writing and shall be either hand-delivered or mailed to the City by certified mail at the following address: Joe Dusek City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 Notices shall be deemed effective on the date of receipt. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. 13. Independent Contractor. Contractor is an independent contractor engaged by City to perform the services described herein and as such (i) shall employ such persons as it shall deem necessary and appropriate for the performance of its obligations pursuant to this Agreement, who shall be employees, and under the direction, of Contractor and in no respect employees of City, and (ii) shall have no authority to employ persons, or make purchases of equipment on behalf of City, or otherwise bind or obligate City. No statement herein shall be construed so as to find the Contractor an employee of the City. 14. Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 15. Audit Disclosure and Data Practices. Any reports, information, data, etc. given to, or prepared or assembled by the Contractor under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior written approval. The books, records, documents and accounting procedures and practices of the Contractor or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined in the Data Practices Act Section 13.02, Subd 7, which is created, collected, received, stored, used, maintained, or disseminated by Contractor in performing any of the functions of the City during performance of this Agreement is subject to the requirements of the Data Practice Act and Contractor shall comply with those requirements as if it were a government entity. All subcontracts entered into by Contractor in relation to this Agreement shall contain similar Data Practices Act compliance language. 16. Non-Discrimination. During the performance of this Agreement, the Contractor shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age. The Contractor shall post in places available to employees and applicants for employment, notices setting forth the provision of this non- discrimination clause and stating that all qualified applicants will receive consideration for employment. The Contractor shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. The Contractor further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. Standard Agreement for Contract Services 2014.01 Page 6 of 8 17. Conflicts. No salaried officer or employee of the City and no member of the Council, or Commission, or Board of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the agreement void. 18. Employees. Contractor agrees not to hire any employee or former employee of City and City agrees not to hire any employee or former employee of Contractor prior to termination of this Agreement and for one (1) year thereafter, without prior written consent of the former employer in each case. 19. Rights and Remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. 20. Damages. In the event of a breach of this Agreement by the City, Contractor shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 21. Enforcement. The Contractor shall reimburse the City for all costs and expenses, including without limitation, attorneys' fees paid or incurred by the City in connection with the enforcement by the City during the term of this Agreement or thereafter of any of the rights or remedies of the City under this Agreement. 22. Mediation. Each dispute, claim or controversy arising from or related to this agreement shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable actions by either party. Unless the parties agree otherwise, the mediation shall be in accordance with the Commercial Mediation Procedures of the American Arbitration Association then currently in effect. A request for mediation shall be filed in writing with the American Arbitration Association and the other party. No arbitration or legal or equitable action may be instituted for a period of 90 days from the filing of the request for mediation unless a longer period of time is provided by agreement of the parties. Cost of mediation shall be shared equally between the parties. Mediation shall be held in the City of Eden Prairie unless another location is mutually agreed upon by the parties. The parties shall memorialize any agreement resulting from the mediation in a mediated settlement agreement, which agreement shall be enforceable as a settlement in any court having jurisdiction thereof. 23. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. 24. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Contract. 25. Waiver. No action nor failure to act by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing. 26. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between Standard Agreement for Contract Services 2014.01 Page 7 of 8 the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 27. Compliance with Laws and Regulations. In providing services hereunder, the Contractor shall abide by statutes, ordinances, rules, and regulations pertaining to the provisions of services to be provided. Any violation of statutes, ordinances, rules and regulations pertaining to the services to be provided shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. Executed as of the day and year first written above. CITY OF EDEN PRAIRIE Mayor City Manager CONTRACTOR By: Its: Standard Agreement for Contract Services 2014.01 Page 8 of 8 Exhibit A 1) Supply 18 pulse VFD with freight and taxes included in price. 2) Demo and Dispose of existing VFD located at well 12 location. 3) Labor to install new VFD which includes startup and documentation. 4) Well #10 &#14 flow meter installation. 5) Supply and install control upgrade at well #12. CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.I. Denise Christensen Release of Agreements Regarding Special Assessments Public Works/Engineering Requested Action Move to: Approve the Release of Agreement Regarding Special Assessments No. 99-01 for Lots 1 through 18, Block 1; Lots 1 through 6, Block 2; Lots 1 through 9, Block 3; Lots 1 through 9, Block 4; Lots 1 through 12, Block 5; Lots 1 through 35, Block 6; Settlers Ridge 3rd Addition, Hennepin County, Minnesota. Synopsis On July 6, 1999, the City of Eden Prairie entered into an Agreements Regarding Special Assessments with Settlers Ridge Limited Partnership pertaining to the levying of special assessments for Trunks and Pioneer Trail improvements for the Settlers Ridge 3rd development. Background Information The improvements contemplated by the Agreements have been levied; therefore, the property should be released from the Agreements Regarding Special Assessments. Attachment Release of Agreement Regarding Special Assessments (Top 3 inches reserved for recording data) RELEASE OF AGREEMENT REGARDING SPECIAL ASSESSMENTS DATE:February 2,2016 FOR VALUABLE CONSIDERATION,the real property in Hennepin County,Minnesota, legally described as follows: Lots 1 through 18, Block I;Lots I through 6,Block 2;Lots 1 through 9,Block 3; Lots 1 through 9,Block 4;Lots 1 through I2,Block 5; Lots 1 through 35,Block 6;Settlers Ridge 3rd Addition,Hennepin County,Minnesota Check here if all or part of the described real property is Registered(Torrens)X is hereby released from the Agreement Regarding Special Assessments,dated July 6, 1999,executed between the City of Eden Prairie and Settlers Ridge Limited Partnership, filed on August 6, 1999,as Document Number 7159495, in the Office of the County Recorder and filed on November 23, 1999,as Document Number 3227777, in the Office of the Registrar of Titles of Hennepin County,Minnesota, CITY OF EDEN PRAIRIE By: Nancy Tyra-Lukens Its:Mayor By: Rick Getschow Its; City Manager STATE OF MLNNESOTA ) )ss, COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of ,2011 by Nancy Tyra- Lukens, and Rick Getschow, the Mayor and City Manager, respectively, of the City of Eden Prairie, a Minnesota municipal corporation,on behalf of said corporation. Notary Public This instrument was drafted by: City of Eden Prairie 8080 Mitchell Road Eden Prairie,Minnesota 55344 CITY COUNCIL AGENDA DATE: February 2, 2016 SECTION: Public Hearings DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: IX.A. Community Maintenance Outdoor Storage Site Development/Planning (M.O.S.S) Janet Jeremiah/Steve Durham Requested Action Move to: • Close the Public Hearing; and • Adopt the Resolution for Site Plan Approval on 13.45 acres; and Synopsis The proposal includes construction of a single story 1st phase 9,600 gross square feet cold storage (unheated) equipment building for storage of off season equipment. A 2nd phase will include a 1,408 square feet heated storage space. Total building area is 11,008 square feet. No office space or employees will be located at this site. The project as proposed meets or exceeds Performance Standards for the Industrial I-Gen Zoning District. The proposed landscape plan meets City Code requirements and will provide screening from the east and southwest. No tree loss is proposed with this project. The site has no outdoor storage or parking to screen. Background In 2005 the City granted site plan approval to allow the construction of an 11,700 square foot sand/salt storage building. The Master Plan, approved in 2005, included a future building for storage of off season equipment. The 120-Day Review Period Expires on March 15, 2016. Planning Commission Recommendation The Planning Commission voted 6-0 to recommend approval of the project at the January 11, 2016 meeting. The Planning Commission reviewed a 12,884 square foot cold storage (unheated) equipment storage building for storage of off season equipment. Between Planning Commission and City Council the project has been scaled to 11,008 square feet. The exterior plan remains the same as reviewed by the Planning Commission, only a smaller footprint. Attachments 1. Resolution Site Plan Approval 2. Staff Report dated January 6, 2016 3. Location Map 4. Guide Plan Map 5. Zoning Map 6. Aerial Map 7. Approved Planning Commission minutes 1-11-16 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2016- A RESOLUTION GRANTING SITE PLAN APPROVAL FOR M.O.S.S. MAINTENANCE OUTDOOR STORAGE SITE (M.O.S.S.) BY THE CITY OF EDEN PRAIRIE WHEREAS, The City of Eden Prairie, has applied for Site Plan approval of 13.45 acres to construct a cold storage equipment building, located at 9811 Flying Cloud Drive, Eden Prairie, Minnesota; and WHEREAS, the City of Eden Prairie has by virtue of City Code provided for the Site Plan Review of certain areas located within the City; and WHEREAS, the Planning Commission did conduct a public hearing on January 11, 2016 for the M.O.S.S. site presented by DSO Architecture on behalf of the City of Eden Prairie, and considered the request for approval of the Site Plan Review and recommended approval of the request to the City Council; and WHEREAS, the City Council did consider the request on February 2, 2016. NOW, THEREFORE,BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE,MINNESOTA that site plan approval is granted as follows: 1. M.O.S.S., being in Hennepin County, Minnesota, legally described as outline in Exhibit A, is attached hereto and made a part hereof. 2. That the City Council does grant Site Plan Review Approval based on the information in the Planning Commission Staff Report dated January 6, 2016; The City Council Cover Memo dated February 2, 2016 and plans stamp dated January 20, 2016. ADOPTED by the City Council of the City of Eden Prairie this 2nd day of February, 2016. Nancy Tyra-Lukens, Mayor ATTEST: Kathleen Porta, City Clerk STAFF REPORT TO: Planning Commission FROM: Steve Durham, Planner II DATE: January 6, 2016 SUBJECT: M.O.S.S. (Maintenance Outdoor Storage Site) LOCATION: 9811 Flying Cloud Drive, Eden Prairie, MN 120 DAY REVIEW: March 15, 2016 REQUEST: Site Plan Review on 13.45 acres for construction of cold storage equipment building BACKGROUND The City of Eden Prairie acquired the former Drive-In Theater site from BFI in 2002 for the purpose of developing a maintenance outside storage site (M.O.S.S.) The site is currently zoned Industrial General,I-Gen.The I-Gen Zoning District permits outdoor storage.In 2005 the City granted site plan approval to allow the construction of an 11,700 square foot sand/salt storage building. The Master Plan approved in 2005 included a future building for storage of off season equipment. COMPREHENSIVE PLAN AND ZONING The property is currently zoned I-Gen and guided for Industrial Development. The surrounding property to the north and west is guided Airport. The property to the east and south is guided Industrial. SITE PLAN The request is to approve a single-story 12,884 gross square feet cold storage(unheated)equipment building for storage of off season equipment. The project, as proposed, meets or exceeds Performance Standards for the Industrial I-Gen Zoning District. Access to the site will be via the existing hard surfaced driveway from Flying Cloud Drive. The building will meet and exceed the required setbacks for the I-Gen Zoning District.The exterior building materials meet or exceed the I- Gen Zoning District Requirement. The roof will be metal and is an approved roof material. The required parking for this building is 7 parking stalls. The site has an existing hard-surfaced parking lot to accommodate the parking.Heavy duty bituminous will be installed at the overhead entry doors and next to the exterior covered cold bin storage areas. One LED street light will be added to the site and will match the existing fixtures on the site. No employees or office uses will be located at this site. Staff Report— M.O.S.S. (Maintenance Outdoor Storage Site) January 6, 2016 TREE LOSS AND LANDSCAPING No Tree loss is proposed with this project. The proposed landscape meets City Code requirements and will provide screening from the east and southwest. A berm along the west lot line screens the site from Flying Cloud Drive. The site has no outdoor storage or parking to screen. The proposed species are appropriate for the climate. STAFF RECOMMENDATION Recommend approval of the following request: • Site Plan review on 13.45 Acres The Recommendation is based on plans stamp dated December 31, 2015, the Staff Report dated January 6, 2016 and the following conditions: Prior to building permit issuance for the property, the applicant shall: A. Provide all existing utilities including electric,gas,telephone and cable indicated on the final plans as required by State Statue. 2 Area Location Map - M .O.S.S. Project # 2015-23 Address : 9811 Flying Cloud Drive / T Z J ct 3,i, J m O - ui cr N� U ti ro 4 Il L. Pioneer Trail Ic, S SITE tiF y�� co !c !ti 'Q�' 9T! Iti -92R 9yl� <> e 1c, oJ0 G 9L �Zi.00 ���G ,,,fro !ti F� ,;, !ti Flying Cloud Drive N 0 250 500 1,000 Feet I I I 1_ I I I I Guide Plan Map - M.O.S.S. Project #2015-23 9811 Flying Cloud Drive, Eden Prairie, MN 55347 Pioneer Trail SITE Flying Cloud Drive i i i 111111111111 City of Ed n Prairie Land Use Guide P 0-2030 Rural Residential 0.10 Units/Acre Neighborhood Commercial Low Density Residential 0-2.5 Units/Acre nip Community Commercial Streams 17.7 Low Density/Public/Open Space - Regional Commercial -Principal Arterial -A Minor Arterial Medium Density residential 2.5-10 Units/Acre ®Town Center . -B Minor Arterial DATE Approved 03-19-03 DATE Revised 12-06-06 nMedium Density Residential/Office - Park/Open Space -Major Collector DATE Revised 01-07-05 DATE Revised 03-01-07 DATE Revised 11-07-05 DATE Revised 06-01-07 EDEN I High Density Residential 10-40 Units/Acre Public/Quasi-Public DATE Revised 02-23-06 DATE Revised 10-01-07 Minor Collector DATE Revised 03-23-06 DATE Revised 03-01-08 nAirport Golf Course DATE Revised 06-23-06 DATE Revised 03-01-09 Office - Church/Cemetary PRAIRIE Y// Office/Industrial Open Water EIVE•WORK•DHEAM fO- Office/Public/Open Space Right-Of-Way °°°�p...`m°°° °•®�°° 700 350 0 700 Feet Industrial Zoning Map - M.O.S.S. Project #2015-23 9811 Flying Cloud Drive, Eden Prairie, MN 55347 / \/I r ' 1111Y1111iliwl — Pioneer Trai401/, l SITE _i_illy Flying Cloud Drive n Prairic—Ze ing Map =Rural -Regional Commercial Shoreland Management Classifications N R1-44 One Family-44,000 sf.min. -TC-C I NE I Natural Environment Waters R1-22 One Family-22,000 sf min. -TC-R I RD I Recreational Development Waters R1-13.5 One Family-13,500 sf min. -TC-MU I GD I General Development Waters(Creeks Only) . 1 1 ,f. t R1-9.5 One Family-9,500 sf min. _Industrial Park-2 Acre Min, ® 100- Year Floodplain RM-6.5 Multi-Family-6.7 U.P.A.max. ll Industrial Park-5Acre Min. -RM-2.5 Multi-Family-17.4 U.P.A.max. -General Industrial-5 Acre Min. Up dated through approved Ordinances#26-2008 EDE Office AI Public Ordinance#33-2001(BFI Addition)approved,but not shown on this map edition PRAIRIE iIF t Neighborhood Commercial n Golf Course Date:March 1,2009 Community Commercial l I Water In case of discrepancy related to a toning classitmaaon on this zoning map,the Ordinance tIVE•WOBIC•tlfi EI1M and attached legal description on file at Eden Paine Ciry Center will prevail. -Highway Commercial I I Right of Way -Regional Service Commercial 0 0.125 0.25 Miles °A-L-1-g--=m._..®..1'..o.a.,a ..o...,..an.m ,..,,mo, Aerial Map -M.O.S.S. Project #2015-23 Address: 9811 Flying Cloud Drive, Eden Prairie, Minnesota 55347 I WM ‘._...- p4441/111 el eg / 0 ):zzj-.....__,_.................... L _ w�.NN NM IN - m 3, Y = 4 I I I I I 1.1 I 1 I I iiii Irma& 0T _ ;40 �._ ilk i Pioneer Trail :i SITE I 40 qf \ i , 4,, v Flying Cloud Drive P r N a, 0 880 1,760 Feet I i i I i i 1 1 APPROVED MINUTES EDEN PRAIRIE PLANNING COMMISSION MONDAY,JANUARY 11, 2016 7:00 P.M., CITY CENTER Council Chambers 8080 Mitchell Road COMMISSION MEMBERS: Jon Stoltz, John Kirk, Travis Wuttke, Ann Higgins, Charles Weber, Andrew Pieper, Ed Farr STAFF MEMBERS: Julie Klima, City Planner Rod Rue, City Engineer Matt Bourne, Manager of Parks and Natural Resources Julie Krull, Recording Secretary I. PLEDGE OF ALLEGIANCE — ROLL CALL Chair Stoltz called the meeting to order at 7:00 p.m. Weber was absent and Pieper arrived during approval of the minutes. II. APPROVAL OF AGENDA MOTION by Kirk, seconded by Farr, to approve the agenda. Motion carried 5-0. III. MINUTES A. PLANNING COMMISSION MEETING HELD ON DECEMBER 7, 2015 Kirk had three changes; the first change is on page 4, paragraph 3, second sentence. He would like 2-story changed to 3-story. The second change is on page 5, paragraph 3, first sentence. He would like the word landscape changed to tree replacement. The third change is on page 7, paragraph 3 under Kal Point, second sentence. He would like the word architect changed to civil engineer. MOTION by Higgins, seconded by Kirk, to approve the Amended Planning Commission Minutes. Motion carried 6-0. IV. INFORMATIONAL MEETINGS V. PUBLIC MEETINGS VI. PUBLIC HEARINGS A. M.O.S.S SITE Location: 9811 Flying Cloud Drive PLANNING COMMISSION MINUTES January 11, 2016 Page 2 Request for: • Site Plan Review on 13.45 acres Dan O'Brien, of 15703 Boulder Creek Drive, Minnetonka and architect on the project, presented the proposal. He stated he has been retained by the City to design the cold storage equipment site. The site was purchased in 2002, and initial development was done on this site in 2005. The development that is proposed tonight is for a single-story 12,884 square foot cold storage equipment building for storage of off season equipment. It is designed as a simple building, much like a big garage. In regards to the landscape plan, Mr. O'Brien said they will make up for the deficit that was created onsite when the salt storage building was constructed. The landscaping is visible from Pioneer Trail, so adding more trees to this area will soften up the look in the area. This building will be a pre-cast concrete structure. There will be a round window added to the front of the building and he stated they did add more glass to the building to comply with the 75% construction materials requirement. Chair Stoltz asked Klima to review the staff report. Klima said the request is for a site plan review for a cold storage unit and the proposal meets or exceeds standards. Staff recommendation is for approval. Farr asked what the gravel path to the east was in regards to. Mr. O'Brien said it is a connection between the landfill and Flying Could Drive. Farr said the plan shows a sprinkler system and asked why they would not need sanitary sewer. The project proponent said the building was designed not to have sanitary sewer and the sprinkler system will be drained by other means. Farr asked if there are fire hydrants on site. The project proponent said they were close by. Klima said the Eden Prairie Fire Department has reviewed the proposal. Wuttke asked the project proponent about the drive thru lanes within the proposed building and how many there were. Mr. O'Brien said there will be only one drive thru lane going from the south to the north; the others will be a pull in. Wuttke asked why they do not have more drive thru lanes. Robert Ellis, Eden Prairie Public Works Director, said the users of the proposed building were consulted regarding how to best utilize the building and noted if there is an expansion in the future for the building then they will have an opportunity to create more drive thru lanes. Wuttke asked if there was going to be maintenance performed on the vehicles in the building. Mr. O'Brien said there would not be maintenance performed on the vehicles because it is just a storage facility. Wuttke asked about the temperature in the northwest area of the building where they sprinkler unit is located. Mr. O'Brien said the exterior walls are insulated PLANNING COMMISSION MINUTES January 11, 2016 Page 3 and there will be security systems to alert people if the building falls below a certain temperature. Higgins questioned security on the site. Mr. O'Brien noted there is discussion about the possibility of installing a gate at the entrance to the property. Chair Stoltz opened the meeting up for public input. There was no input. MOTION by Wuttke, seconded by Higgins, to close the public hearing. Motion carried 6-0. MOTION by Wuttke, seconded by Kirk, to recommend approval of the site Plan Review on 13.45 acres based on the information included in the staff report dated January 6, 2016 and plans stamp dated December 31, 2015. Motion carried 6-0. VII. PLANNERS' REPORT Klima said the City Council will host the Boards and Workshop meeting on Tuesday, January 19th from 5 to 6:30 pm in the Heritage Room. VIII. MEMBERS' REPORT A. COMMUNITY ADVISORY COMMITTEE—LIGHT RAIL Pieper said there has not been a recent meeting due to the holidays. IX. CONTINUING BUSINESS X. NEW BUSINESS XI. ADJOURNMENT MOTION by Kirk, seconded by Higgins, to adjourn the Planning Commission meeting. Motion carried 6-0. Chair Stoltz adjourned the meeting at 7:34 p.m. CITY COUNCIL AGENDA DATE: SECTION: Payment of Claims February 2, 2016 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: X. Sue Kotchevar, Office of the Payment of Claims City Manager/Finance Requested Action Move to: Approve the Payment of Claims as submitted (roll call vote) Synopsis Checks 244318 - 244531 Wire Transfers 1013052 - 1013153 Wire Transfers 5646 - 5659 City of Eden Prairie Council Check Summary 2/3/2016 Division Amount Division Amount 45,239 308 E-911 36,074 100 City Manager 30 309 DWI Forfeiture 42 110 City Clerk 2,950 315 Economic Development 158 111 Customer Service 1,570 445 Cable PEG 12,660 112 Human Resources 40 502 Park Development 998 113 Communications 8,299 509 CIP Fund 22,956 114 Benefits&Training 5,484 526 Transportation Fund 13,603 132 Housing and Community Services 12,482 527 CIP-Leasing Costs 240 133 Planning -798 528 Shady Oak Rd-CR 61 North 0 136 Public Safety Communications 7,846 530 Pool Upgrade/Expansion 8,455 150 Park Administration 578 Total Capital Projects Fund 95,185 151 Park Maintenance 34,027 153 Organized Athletics 561 601 Prairie Village Liquor 144,943 154 Community Center 10,421 602 Den Road Liquor 346,719 156 Youth Programs 1,140 603 Prairie View Liquor 168,494 158 Senior Center 816 605 Den Road Building 1,577 160 Therapeutic Recreation 926 701 Water Fund 45,627 161 Oak Point Pool 19,046 702 Sewer Fund 13,421 162 Arts 2,705 703 Storm Drainage Fund 97,009 163 Outdoor Center 30 Total Enterprise Fund 817,789 168 Arts Center 2,160 180 Police 48,474 803 Escrow Fund 12,962 184 Fire 843,373 806 SAC Agency Fund 47,215 186 Inspections 51 807 Benefits Fund 881,509 200 Engineering 3,081 811 Property Insurance 25,000 201 Street Maintenance 28,039 812 Fleet Internal Service 61,238 202 Street Lighting 67,192 813 IT Internal Service 52,078 Total General Fund 1,145,762 814 Facilities Capital ISF 74,316 815 Facilites Operating ISF 20,400 301 CDBG 4,649 816 Facilites City Center ISF 65,113 312 Recycle Rebate 334 817 Facilites Comm.Center ISF 10,334 Total Special Revenue Fund 4,983 Total Service/Agency Funds 1,250,164 443 2012C GO Perm Impr Ref Bonds 1,608,750 446 2014A G.O.TAX ABATEMENT BONDS 274,381 Total Debt Service Fund 1,883,131 Report Total 5,197,015 City of Eden Prairie Council Check Register by GL 2/3/2016 Check# Amount Supplier/Explanation Account Description Business Unit Comments 5652 1,883,131 WELLS FARGO BANK MINNESOTA NA Interest 2014A G.O.TAX ABATEMENT BONDS Wells Fargo bond pymt 5646 836,512 EDEN PRAIRIE FIREFIGHTER'S RELIEF ASSOC Fire Relief Pension Payment Fire Fire Relief 244362 263,011 HEALTHPARTNERS Accounts Receivable Health and Benefits Premiums Jan2016 5649 249,477 ULTIMATE SOFTWARE GROUP,THE Federal Taxes Withheld Health and Benefits Ultimate-payroll taxes 5647 163,023 PUBLIC EMPLOYEES RETIREMENT ASSOCIATION PERA Health and Benefits PERA 5655 149,500 GENESIS EMPLOYEE BENEFITS,INC HSA Health and Benefits Health Savings Acct 1/8/16 5654 147,360 MINNESOTA DEPT OF REVENUE Sales Tax Payable General Fund MN Dept of Revenue-sales tax 1013153 89,049 XCEL ENERGY Electric Traffic Signals 244520 83,098 SUNRAM CONSTRUCTION Improvement Contracts Storm Drainage 244376 75,539 JOHNSON BROTHERS LIQUOR CO Liquor Product Received Den Road Liquor Store 1013105 58,476 RESTORATION SYSTEMS INC Other Contracted Services Facilities Capital 244399 49,436 SOUTHERN WINE&SPIRITS OF MN Liquor Product Received Prairie View Liquor Store 244475 48,532 JOHNSON BROTHERS LIQUOR CO Liquor Product Received Prairie Village Liquor Store 244381 46,743 METROPOLITAN COUNCIL Other Revenue SAC Agency Fund 244417 36,135 WIRTZ BEVERAGE MINNESOTA Liquor Product Received Prairie View Liquor Store 244515 33,795 SOUTHERN WINE&SPIRITS OF MN Liquor Product Received Prairie View Liquor Store 1013098 33,794 STREICHERS Clothing&Uniforms Police 1013139 27,665 LOGIS LOGIS IT Operating 244528 27,123 WIRTZ BEVERAGE MINNESOTA Liquor Product Received Prairie View Liquor Store 1013089 26,920 MINNESOTA DIRT WORKS INC Improvement Contracts Shady Oak Road/CR 61 NORTH 244375 26,198 JJ TAYLOR DISTRIBUTING MINNESOTA Liquor Product Received Prairie View Liquor Store 5651 25,981 EMPOWER Deferred Compensation Health and Benefits 244394 25,651 PHILLIPS WINE AND SPIRITS INC Liquor Product Received Prairie View Liquor Store 244479 25,000 LEAGUE MN CITIES INS TRUST Insurance Property Insurance 1013099 24,361 THORPE DISTRIBUTING Liquor Product Received Den Road Liquor Store 244529 24,171 WIRTZ BEVERAGE MINNESOTA BEER INC Liquor Product Received Prairie Village Liquor Store 1013142 23,862 MOTOROLA Other Assets E-911 Program 244480 22,632 MANSFIELD OIL COMPANY Motor Fuels Fleet Operating 1013151 21,210 THORPE DISTRIBUTING Liquor Product Received Prairie Village Liquor Store 244320 20,967 ABM ONSITE SERVICES-MIDWEST Janitor Service Utility Operations-General 244455 20,487 FINLEY BROS INC Building Materials Miller Park 1013077 19,442 ASPEN EQUIPMENT CO. Machinery&Equipment Snow&Ice Control 244349 19,046 EDEN PRAIRIE SCHOOL Other Contracted Services Oak Point Operations 5650 18,961 ICMA RETIREMENT TRUST-457 Deferred Compensation Health and Benefits 1013061 18,656 GREENSIDE INC Contract Svcs-Snow Removal Fire Station#1 1013094 16,650 PRAIRIE ELECTRIC COMPANY Contract Svcs-HVAC Water Wells 244474 16,399 JJ TAYLOR DISTRIBUTING MINNESOTA Liquor Product Received Prairie Village Liquor Store 244427 16,123 AUTOWASH SYSTEMS INC Machinery&Equipment Fleet Operating 244418 14,243 WIRTZ BEVERAGE MINNESOTA BEER INC Liquor Product Received Prairie Village Liquor Store 244380 13,603 METRO TRANSIT Design&Engineering Transportation Fund 244451 13,439 DSO ARCHITECTURE INC Design&Engineering Capital Maint.&Reinvestment 1013091 13,439 MTI DISTRIBUTING INC Equipment Parts Capital Outlay Parks 244416 12,317 WINE MERCHANTS INC Liquor Product Received Prairie View Liquor Store 1013090 12,212 MOTOROLA Equipment Repair&Maint E-911 Program 244506 12,079 PHILLIPS WINE AND SPIRITS INC Liquor Product Received Den Road Liquor Store 244359 11,799 GRAYMONT Treatment Chemicals Water Treatment Plant 244408 11,500 TOUCHPOINT LOGIC LLC Equipment Repair&Maint Cable PEG 1013079 11,186 CERIDIAN Other Assets IT Capital 1013147 9,956 PRAIRIE ELECTRIC COMPANY Repair&Maint-Ice Rink City Hall-CAM 244429 9,800 BAKER Other Contracted Services Den Road Liquor Store 5656 9,113 GENESIS EMPLOYEE BENEFITS,INC HSA-Employer Health and Benefits 1013108 8,455 BRAUN INTERTEC CORPORATION Building Aquatics&Fitness Expansion Check# Amount Supplier/Explanation Account Description Business Unit Comments 244379 8,380 MANSFIELD OIL COMPANY Motor Fuels Fleet Operating 244461 7,788 GRAYMONT Treatment Chemicals Water Treatment Plant 1013149 7,750 SENIOR COMMUNITY SERVICES Other Contracted Services Housing and Community Service 1013132 7,624 EPA AUDIO VISUAL INC Other Assets IT Operating 244366 7,162 HOHENSTEINS INC Liquor Product Received Prairie View Liquor Store 244393 6,465 PAUSTIS&SONS COMPANY Liquor Product Received Prairie View Liquor Store 244400 6,366 SOUTHWEST NEWS MEDIA Printing Communications 244523 6,311 VERIZON WIRELESS Other Contracted Services IT Operating 244322 6,028 ARTISAN BEER COMPANY Liquor Product Received Prairie View Liquor Store 244396 5,896 SIDEKICK Other Contracted Services Records Management 1013104 5,555 WINE COMPANY,THE Liquor Product Received Prairie View Liquor Store 1013124 5,453 WENCK ASSOCIATES INC Design&Engineering Storm Drainage 244516 5,216 SPECIAL SERVICES GROUP LLC Dues&Subscriptions Police 1013131 5,029 ELECTRIC PUMP Equipment Parts Sewer Liftstation 1013074 5,017 WSB&ASSOCIATES INC Design&Engineering Park Acquisition&Development 244521 4,950 TMS JOHNSON Supplies-Fire/Life/Safety Public Works/Parks 1013100 4,812 TWIN CITY HARDWARE Contract Svcs-Security Den Road Liquor Store 244448 4,619 COMMUNITY ACTION PARTNERSHIP Refunds CDBG-Public Service 244487 4,527 MINNESOTA DEPARTMENT OF EMPLOYMENT Unemployment Compensation Organizational Services 244527 4,426 WINE MERCHANTS INC Liquor Product Received Prairie Village Liquor Store 1013130 4,205 CENTERPOINT ENERGY Gas Cummins Grill 244437 4,185 BROTHERS FIRE PROTECTION Contract Svcs-Fire/Life/Safe Arts Center 1013070 4,109 VAN PAPER COMPANY Cleaning Supplies City Center Operations 244466 3,958 HOHENSTEINS INC Liquor Product Received Prairie Village Liquor Store 244350 3,946 EDINA,CITY OF Printing Communications 244458 3,885 GARDEN ROOM FRATELLI'S GARDEN INC,THE Supplies-Garden Room Garden Room Repairs 244504 3,824 PAUSTIS&SONS COMPANY Liquor Product Received Prairie Village Liquor Store 244335 3,716 CENTURYLINK Telephone Cummins Grill 244495 3,584 NORTH PINE AGGREGATE,INC Gravel Storm Drainage 244397 3,509 SITEONE LANDSCAPE SUPPLY,LLC Repair&Maint.Supplies Park Maintenance 1013123 3,509 VINOCOPIA Liquor Product Received Den Road Liquor Store 1013071 3,475 VINOCOPIA Liquor Product Received Prairie View Liquor Store 244406 3,250 TEENS ALONE Other Contracted Services Housing and Community Service 244485 3,233 MILLER DAVID Reimbursement-legal notices Escrow 244424 3,096 ARTISAN BEER COMPANY Liquor Product Received Prairie Village Liquor Store 1013150 3,081 STREICHERS Clothing&Uniforms Police 244484 3,041 MIDWEST COCA COLA BOTTLING COMPANY Liquor Product Received Concessions 244326 3,025 BERNICK'S WINE Liquor Product Received Prairie View Liquor Store 244524 3,024 VIDEOTRONIX INC Other Assets Public Safety Communications 244385 2,975 MINNESOTA VALLEY ELECTRIC COOPERATIVE Electric Riley Lake 244468 2,960 IMPACT PROVEN SOLUTIONS Other Contracted Services Water Accounting 1013152 2,906 WINE COMPANY,THE Liquor Product Received Prairie Village Liquor Store 244501 2,904 P3 FOODS LLC Reimbursement-legal notices Escrow 244438 2,725 BUELL CONSULTING INC Reimbursement-legal notices Escrow 244378 2,640 LUBE-TECH ESI Equipment Repair&Maint Fleet Operating 1013127 2,485 A-SCAPE INC Contract Svcs-Snow Removal Den Bldg.-CAM 1013125 2,444 ADVANCED ENGINEERING&ENVIRONMENTAL SE Process Control Services Sewer Liftstation 244333 2,320 CARVER COUNTY LICENSE CENTER Licenses&Taxes Fleet Operating 244409 2,250 TRAFFIC CONTROL CORPORATION Operating Supplies Traffic Signals 244373 2,228 INTERTECH INC Contract Development IT Operating 244470 2,160 INTERTECH INC Contract Development IT Operating 1013138 2,160 KIDCREATE STUDIO Instructor Service Arts Center 244498 2,065 OMEGA INDUSTRIES Small Tools Capital Outlay Parks 1013078 2,037 BELLBOY CORPORATION Liquor Product Received Prairie View Liquor Store 5658 1,805 GENESIS EMPLOYEE BENEFITS,INC Other Contracted Services Health and Benefits 1013128 1,795 BELLBOY CORPORATION Liquor Product Received Prairie Village Liquor Store Check# Amount Supplier/Explanation Account Description Business Unit Comments 1013076 1,716 A-SCAPE INC Contract Svcs-Snow Removal Den Bldg.-CAM 244439 1,710 BUREAU OF CRIMINAL APPREHENSION Software Maintenance IT Operating 1013137 1,636 HORIZON COMMERCIAL POOL SUPPLY Supplies-Pool Pool Maintenance 1013141 1,567 METRO ELEVATOR INC Contract Svcs-Elevator City Hall-CAM 1013092 1,476 PARLEY LAKE WINERY Liquor Product Received Prairie View Liquor Store 244377 1,409 KEEPRS INC. Clothing&Uniforms Reserves 1013093 1,407 PETERSON BROS ROOFING AND CONSTRUCTION I Contract Svcs-Roof Fire Station#3 244336 1,400 CENTURYLINK Telephone IT Telephone 244410 1,377 TRUE FABRICATIONS Liquor Product Received Den Road Liquor Store 244383 1,366 MINNESOTA SAFETY SERVICES LLC Instructor Service Pool Lessons 244425 1,360 ARVIG Fiber Lease Payments IT Operating 1013059 1,285 FLEETPRIDE INC Equipment Parts Fleet Operating 244368 1,250 HOMELINE Other Contracted Services Housing and Community Service 244508 1,203 PLASTIC BAG MART Liquor Product Received Prairie Village Liquor Store 244435 1,188 BOLTON&MENK INC Design&Engineering Storm Drainage 5653 1,167 MINNESOTA DEPT OF REVENUE Motor Fuels Fleet Operating 244428 1,160 AVI SYSTEMS INC Equipment Repair&Maint Cable PEG 244503 1,156 PARK JEEP INC Equipment Parts Fleet Operating 244420 1,109 ACCOUNTEMPS Other Contracted Services Community Center Admin 244345 1,104 E A SWEEN COMPANY Merchandise for Resale Concessions 244401 1,101 SPOK,INC. Pager&Cell Phone IT Operating 1013081 1,091 ELECTRIC PUMP Equipment Parts Sewer Liftstation 244434 1,076 BLUE TARP FINANCIAL INC Small Tools Fleet Operating 244395 1,050 RETROFIT COMPANIES,INC,THE Supplies-Electrical Fitness/Conference-Cmty Ctr 244337 1,042 CHANKASKA CREEK RANCH&WINERY,LLC Liquor Product Received Prairie View Liquor Store 244432 1,007 BERNICK'S WINE Liquor Product Received Prairie Village Liquor Store 244334 970 CEMSTONE PRODUCTS COMPANY Asphalt Overlay Storm Drainage 244414 941 VIDEOTRONIX INC Equipment Repair&Maint Public Safety Communications 244431 900 BEREA EV LUTHERAN CHURCH Deposits-P&R Refunds Community Center Admin 1013085 898 IDEAL SERVICE INC Equipment Repair&Maint Water Treatment Plant 1013146 889 POMP'S TIRE SERVICE INC Tires Fleet Operating 244507 888 PITNEY BOWES Postage Customer Service 244367 880 HOME DEPOT CREDIT SERVICES Supplies-Electrical City Center Operations 244404 875 SUSA Dues&Subscriptions Utility Operations-General 244423 839 AMERIPRIDE LINEN&APPAREL SERVICES Janitor Service Fire 244422 790 AMAZING ATHLETES OF SOUTHWEST METRO Instructor Service Preschool Events 244358 786 GRAPE BEGINNINGS Liquor Product Received Prairie View Liquor Store 244469 764 INDEED BREWING COMPANY LLC Liquor Product Received Prairie Village Liquor Store 1013136 757 GRAINGER Cleaning Supplies Water Metering 1013073 755 WILSON,JOHN D. Clothing&Uniforms Police 244369 750 HOUTZ,STEPHEN J Other Contracted Services Winter Theatre 244497 750 O'BRIEN HAYES Other Contracted Services Winter Theatre 1013052 743 ALBERS,JASON Tuition Reimbursement/School Organizational Services 1013084 738 HOSE/CONVEYORS INC Equipment Parts Fleet Operating 244509 730 READY WATT ELECTRIC Equipment Repair&Maint Emergency Preparedness 1013107 711 BOUNDLESS NETWORK Clothing&Uniforms Facilities Staff 244457 708 FONTENOT KIMBERLY Deposits-P&R Refunds Community Center Admin 244511 700 ROONEY MICHAEL AR Utility Water Enterprise Fund 244382 693 MIDWEST COCA COLA BOTTLING COMPANY Merchandise for Resale Concessions 1013133 680 FASTSIGNS Printing Winter Theatre 1013063 679 JOHN HENRY FOSTER MINNESOTA INC Maintenance Contracts Water Treatment Plant 244502 653 PACE ANALYTICAL SERVICES INC. Lime Residual Removal Water Treatment Plant 1013145 642 PARLEY LAKE WINERY Liquor Product Received Prairie View Liquor Store 1013096 630 REINDERS INC Chemicals Park Maintenance 1013129 595 BIFFS INC Waste Disposal Park Maintenance 1013083 582 GRAINGER Equipment Parts Water Metering Check# Amount Supplier/Explanation Account Description Business Unit Comments 244370 578 HYDRO KLEAN Repair&Maint.Supplies Water System Maintenance 1013126 574 AMERITRAK Operating Supplies Traffic Signs 244347 561 EDEN PRAIRIE COMMUNITY EDUCATION Gym Rental Volleyball 244341 560 CRETEX CONCRETE PRODUCTS MIDWEST INC Repair&Maint.Supplies Storm Drainage 244372 550 INDEED BREWING COMPANY LLC Liquor Product Received Prairie Village Liquor Store 244464 550 HENNEPIN COUNTY I/T DEPT Software Maintenance IT Operating 244512 543 SHORT ELLIOTT HENDRICKSON INC Design&Engineering Storm Drainage 1013058 538 FASTENAL COMPANY Small Tools Park Maintenance 244483 534 MIDWEST BLINDS Supplies-General Bldg Pool Maintenance 244463 520 HENNEPIN COUNTY ACCOUNTS RECEIVABLE Board of Prisoner Police 244467 516 HOPKINS SCHOOL DISTRICT ISD270 Fiber Lease Payments IT Operating 244482 504 MEDICINE LAKE TOURS Special Event Fees Trips 244465 500 HENNEPIN TECHNICAL COLLEGE Tuition Reimb-College Tuition Fire 244500 497 OXYGEN SERVICE COMPANY EMS Supplies-Oxygen Supplies Fire 244525 488 WATER HEATERS ONLY LLC Supplies-HVAC Riley House 244496 478 NORTH STAR WIPER&IND SUPPLY Operating Supplies Fire 244352 460 EVIDENT INC Operating Supplies Police 1013056 450 COY,ERICA Clothing&Uniforms Police 244328 444 BOURGET IMPORTS Liquor Product Received Prairie View Liquor Store 244398 443 SMALL LOT MN Liquor Product Received Prairie Village Liquor Store 1013055 443 CLAREY'S SAFETY EQUIPMENT Employment Support Test Emergency Preparedness 244402 422 STAPLES ADVANTAGE Office Supplies Customer Service 244478 420 LAKE COUNTRY DOOR LLC Building Repair&Maint. Utility Operations-General 1013134 403 FILTRATION SYSTEMS Supplies-HVAC Fitness/Conference-Cmty Ctr 244459 402 GOPHER STATE ONE-CALL OCS-Leak Detection Utility Operations-General 1013101 397 TWIN CITY SEED CO Landscape Materials/Supp Storm Drainage 244405 390 SYSCO WESTERN MINNESOTA Merchandise for Resale Concessions 244327 390 BLOOMINGTON,CITY OF Kennel Services Animal Control 1013121 388 VAN PAPER COMPANY Cleaning Supplies City Center Operations 1013080 365 CONCRETE CUTTING&CORING INC Small Tools Traffic Signs 244462 360 HD SUPPLY WATERWORKS LTD Equipment Parts Water System Maintenance 244471 350 JACOBS,TRAVIS Tuition Reimb-College Tuition Fire 244514 350 SOUNDS GREAT Instructor Service Skating Rinks/Warming Houses 244510 343 RETROFIT COMPANIES,INC,THE Supplies-Electrical Park Shelters 244481 340 MATTS AUTO SERVICE INC Equipment Repair&Maint Fleet Operating 244330 335 BROTHERS FIRE PROTECTION Contract Svcs-Fire/Life/Sfty City Hall-CAM 244430 331 BAUHAUS BREW LABS,LLC Liquor Product Received Prairie Village Liquor Store 244413 325 VERLEY,TARYN Other Contracted Services Winter Theatre 244355 324 FLAHERTYS HAPPY TYME COMPANY Liquor Product Received Prairie View Liquor Store 1013109 319 CHEMSEARCH Contract Svcs-Ice Rink Ice Arena Maintenance 1013087 315 LOGIS Network Support IT Operating 244411 307 UNIFORMS UNLIMITED Clothing&Uniforms Police 5657 300 GENESIS EMPLOYEE BENEFITS,INC HRA Health and Benefits 1013066 300 PROSOURCE SUPPLY Cleaning Supplies Fitness/Conference-Cmty Ctr 244518 297 STAPLES ADVANTAGE Office Supplies Customer Service 1013135 296 FORCE AMERICA Equipment Parts Fleet Operating 244351 295 ENKI BREWING COMPANY INC Liquor Product Received Prairie View Liquor Store 244386 293 MINNESOTA WANNER COMPANY Equipment Parts Snow&Ice Control 244494 290 NELSON KEVIN Development Fire Permits General Fund 1013068 286 SHAMROCK GROUP,INC-ACE ICE Liquor Product Received Den Road Liquor Store 244340 285 CONSTRUCTION SPECIALTIES INC Supplies-General Building City Center Operations 244323 283 ASPEN MILLS Clothing&Uniforms Fire 244361 281 HD SUPPLY WATERWORKS LTD Equipment Parts Storm Drainage 244339 280 COMCAST Other Broadband Internet IT Operating 244391 278 ORGANIX SOLUTIONS Cleaning Supplies City Center Operations 244491 275 MNIAI Dues&Subscriptions Police Check# Amount Supplier/Explanation Account Description Business Unit Comments 244390 271 OLSEN CHAIN&CABLE Repair&Maint.Supplies Storm Drainage 244371 260 IMPACT PROVEN SOLUTIONS Operating Supplies Water Accounting 1013067 258 QUALITY PROPANE Motor Fuels Ice Arena Maintenance 244436 251 BOURGET IMPORTS Liquor Product Received Den Road Liquor Store 1013053 251 BERRY COFFEE COMPANY Merchandise for Resale Concessions 244456 241 FLYING CLOUD T/S#U70 Waste Disposal Park Maintenance 244526 240 WELSH COMPANIES Other Contracted Services CIP-Leasing Costs 1013119 239 SHAMROCK GROUP,INC-ACE ICE Liquor Product Received Prairie Village Liquor Store 244321 238 AMERIPRIDE LINEN&APPAREL SERVICES Janitor Service Prairie Village Liquor Store 244324 233 BAUHAUS BREW LABS,LLC Liquor Product Received Den Road Liquor Store 244348 232 EDEN PRAIRIE NOON ROTARY CLUB Miscellaneous Police 244453 232 EDEN PRAIRIE NOON ROTARY CLUB Dues&Subscriptions Housing and Community Service 244452 226 E A SWEEN COMPANY Merchandise for Resale Concessions 244357 220 GOLDEN VALLEY SUPPLY CO Supplies-General Bldg Fire Station#1 244446 219 COMCAST Cable TV Fire 244342 217 DELUXE Bank and Service Charges Prairie View Liquor Store 1013086 217 JANEX INC Cleaning Supplies Fire Station#2 244460 211 GRAPE BEGINNINGS Liquor Product Received Prairie View Liquor Store 244332 204 CALIFORNIA CONTRACTORS SUPPLIES INC Operating Supplies Utility Operations-General 244356 200 FORECAST PUBLIC ART Other Contracted Services Arts 244384 200 MINNESOTA STATE FIRE CHIEFS ASSN Conference/Training Fire 244419 197 Z WINES USA LLC Liquor Product Received Prairie View Liquor Store 1013116 197 METROPOLITAN FORD Equipment Parts Fleet Operating 1013060 195 GOLDAMER,DANA Mileage&Parking Community Center Admin 1013069 195 STONEBROOKE Equipment Parts Fleet Operating 5648 191 ULTIMATE SOFTWARE GROUP,THE Garnishment Withheld Health and Benefits 1013143 187 NEW FRANCE WINE COMPANY Liquor Product Received Den Road Liquor Store 244364 181 HENNEPIN COUNTY TREASURER Land Park Acquisition&Development 244374 177 JASON,COLLEEN Deposits-P&R Refunds Community Center Admin 244450 177 DIAMOND,KATHY Deposits-P&R Refunds Community Center Admin 244325 175 BECKER ARENA PRODUCTS INC Building Materials Park Maintenance 244513 169 SHRED RIGHT Waste Disposal City Center Operations 244531 162 HIGGINS EMILY Deposits Escrow 244454 158 EHLERS&ASSOCIATES INC Other Contracted Services Project Fund 244476 157 KEEPRS INC. Clothing&Uniforms Reserves 244444 154 COMCAST Cable TV Fire 244445 153 COMCAST Cable TV Fire 244447 153 COMCAST Cable TV Fire 5659 147 OPTUM HEALTH Other Contracted Services Health and Benefits 1013118 140 QUALITY PROPANE Motor Fuels Ice Arena Maintenance 244499 140 OUTDOOR ENVIRONMENTS INC Other Contracted Services Park Maintenance 1013106 140 BERRY COFFEE COMPANY Merchandise for Resale Concessions 1013110 140 DUNGAN,TRACY Mileage&Parking Concessions 244472 139 JENSEN TECHNICAL SERVICES Supplies-Pool Pool Maintenance 244392 137 OXYGEN SERVICE COMPANY EMS Supplies-Oxygen Supplies Fire 1013144 136 NUCO2 INC Supplies-Pool Pool Maintenance 244407 136 TKO WINES,INC Liquor Product Received Den Road Liquor Store 244344 134 DOMACE VINO Liquor Product Received Prairie Village Liquor Store 244365 132 HENNEPIN COUNTY TREASURER Waste Disposal Park Maintenance 244338 130 CITY OF SAINT PAUL Patching Asphalt Street Maintenance 1013114 129 KRUEGER,MARK Operating Supplies Reserves 244440 127 CENTURYLINK Telephone Water Distribution 244517 125 ST.LOUIS PARK FIRE DEPARTMENT Conference/Training Fire 1013088 124 MENARDS Operating Supplies Park Maintenance 1013082 122 FORCE AMERICA Equipment Parts Snow&Ice Control 244318 120 AARP DRIVERS SAFETY Other Contracted Services Senior Center Programs Check# Amount Supplier/Explanation Account Description Business Unit Comments 244319 120 AARP DRIVERS SAFETY Other Contracted Services Senior Center Programs 1013120 114 STEEN,JEFFREY Mileage&Parking Park Maintenance 244522 113 TRANSUNION RISK&ALTERNATIVE DATA Other Contracted Services Police 1013097 108 STERICYCLE INC Other Contracted Services Police 1013113 104 KALLIGHER,ANDREA Mileage&Parking Community Center Admin 244343 103 DIRECTV Cable TV Community Center Admin 244360 100 HANSON KARI Refunds Environmental Education 244493 100 MUSIL AMANDA Refunds Environmental Education 244505 100 PAYNE,ANDREA Refunds Environmental Education 1013057 98 ELLIS,ROBERT Mileage&Parking Engineering 1013117 98 MPX GROUP,THE Office Supplies Fire 1013115 94 LANZI,BOB Mileage&Parking Ice Admin. 1013122 92 VANDENBERGHE,MARK Dues&Subscriptions Public Safety Communications 1013103 90 VIKING ELECTRIC SUPPLY Landscape Materials/Supp Park Maintenance 244387 88 MN MAINTENANCE EQUIPMENT INC Equipment Repair&Maint Park Maintenance 244363 83 HENNEPIN COUNTY MEDICAL CENTER EMS Supplies Fire 244426 83 AT&T MOBILITY Pager&Cell Phone Water System Maintenance 244415 74 VINE LINE DISTRIBUTION LLC Liquor Product Received Prairie View Liquor Store 244488 72 MINNESOTA TROPHIES&GIFTS Operating Supplies Police 244331 71 BURKE JEANNE Deposits-P&R Refunds Community Center Admin 1013112 66 HANINK,KELLY Travel Expense Fire 244433 60 BLOOMINGTON SECURITY SOLUTIONS Operating Supplies Park Maintenance 1013102 55 US HEALTH WORKS MEDICAL GRP MN,PC Employment Support Test Organizational Services 1013075 52 A TO Z RENTAL CENTER Repair&Maint.Supplies Storm Drainage 244477 51 KRAGNESS,KEN Mileage&Parking Inspections-Administration 244353 50 FBI-LEEDA Dues&Subscriptions Police 244389 48 MURAKAMI,SUSAN Deposits-P&R Refunds Community Center Admin 244486 47 MINNEAPOLIS FINANCE DEPARTMENT Software Maintenance IT Operating 1013072 45 WHITE,BECKI Operating Supplies-Food Fire 1013148 45 PREMIUM WATERS INC Operating Supplies-Water Fire 244421 43 ALTERNATIVE BUSINESS FURNITURE INC Supplies-General Building City Center Operations 244329 41 BROCK WHITE COMPANY LLC Repair&Maint.Supplies Storm Drainage 244490 40 MN PRIMA Dues&Subscriptions Human Resources 1013064 37 LUNDGREN,CAROL Mileage&Parking Engineering 1013062 36 INTEREUM INC Supplies-General Bldg Fitness/Conference-Cmty Ctr 244388 35 MRPA Conference/Training Parks Administration 244441 32 CLEAN N PRESS MTKA Clothing&Uniforms Police 244346 30 EDEN PRAIRIE CHAMBER OF COMMERCE Miscellaneous Administration 244492 29 MOSIOR REGINALD Deposits-P&R Refunds Community Center Admin 1013054 29 BERTELSON TOTAL OFFICE SOLUTIONS Office Supplies Utility Operations-General 1013095 28 PRIORITY COURIER EXPERTS Equipment Parts Fleet Operating 1013111 26 FASTENAL COMPANY Operating Supplies Fleet Operating 244403 21 STATE OF MINNESOTA Miscellaneous DWI Forfeiture 244519 21 STATE OF MINNESOTA Miscellaneous DWI Forfeiture 244530 20 ZIMPELMAN ALICE L Deposits Community Center Admin 244473 15 JERRY'S ENTERPRISES INC Building Materials Senior Center Programs 1013065 15 METROPOLITAN FORD Equipment Parts Fleet Operating 244442 14 COMCAST Cable TV Fire 1013140 10 MENARDS Operating Supplies Traffic Signs 244489 10 MINNESOTA VALLEY ELECTRIC COOPERATIVE Electric Riley Creek Woods 244354 7 FISERV INC Bank and Service Charges Water Accounting 244449 4 DEALER AUTOMOTIVE SERVICES INC Equipment Parts Fleet Operating 244443 2 COMCAST Other Contracted Services Police 5,197,015 Grand Total Check# Amount Supplier/Explanation Account Description Business Unit Comments