The City Manager in the City of Fridley shall have the responsibility of the management and operation of the municipal water system, sanitary sewer system and storm water system in the City of Fridley. The City Manager shall have immediate control and custody of all properties, be responsible for their safekeeping and their proper storage and care, and shall provide for the keeping of a full and accurate record of all work done with respect thereto, the cost thereof, the names of persons employed, hours worked and such other information and records as may be required by the City Council. Further, the City Manager shall have immediate charge of all employees necessary to the operation of the said utilities of the City. (Ref. 113)

The City shall eliminate hazards to safety and health arising from defective water systems, sanitary sewer systems, and storm water systems in the City of Fridley; and for such purposes shall extend its municipal or public sewers to all lands of the City and require connection of all failing Individual Sewage Treatment Systems (ISTS) to said systems.

No person shall make any type of connection to the municipal water system, the sanitary sewer system or the storm water system except upon making an application therefore on a form provided by the City and receiving a permit issued by the City for such purpose. The application shall include an exact description of the property to be served, the uses for which the connection is requested and the size of the service lines requested or to be used. At the time of making such application, there shall be paid to the City a fee as designated in Sections 402.04, 402.05, and 402.15, which shall be applied to, paid for, and received by the City for the purpose indicated.

No connection shall be made or continued in use at any time with respect to any sewer or water connection serving property if any person or occupants of the land, parcel or premises affected have not paid or provided for the payment of the full and proportionate share of the systems, services or improvements to be used as determined by the City Council, which share of the cost of said system, service or improvement shall be payable as follows:

1. For service to property to which service lines have not been previously run from the street laterals to the property line, the owner, occupant or user shall pay into the City Treasury (Water and Sewer Utility Fund) an amount not less than the cost of making connections, taps and installation of necessary pipe and appurtenances to provide service to the property and necessary street repairs. Alternately, the City shall allow the owner to contract directly with an approved firm to install such connection and restoration subject to approval and inspection by the City.
2. For service to property to which service lines have been run previously to the property line but have not been paid for, the owner, occupant or user shall pay in cash or agree to pay charges in the form of Special Assessments to be levied against the property to be spread over a number of years coincident with the maturity requirements of any Special Improvement Bonds sold for the purpose of financing the construction of such water and sewer lines and service connections serving the property. Said cash payment or Assessment charge shall be in principal amount not less than the payments made by or charges placed against comparable properties for like services of such water or sewer, i.e. FOR AN "EQUIVALENT LATERAL ASSESSMENT", or an amount as may be established by the City Council. In the instance of services run to the property lines as provided under Section 402.03.A, the payment to the City Treasury of any amount required under Section 402.03.B shall be reduced by the amount paid to the City under Section 402.03.A. Payment to the City Treasury in the form of a Special Assessment charge shall be in the form of equal annual installments together with interest on the unpaid balance from year to year, which interest shall be computed at the current rate of assessment.

Prior to constructing or repair of any water or sewer line connecting the existing municipal system and any house or building for which the application is made, the owner or contractor shall be required to obtain a permit for such connection, and shall pay a permit fee as provided in Chapter 11 of this Code. After such connection has been made, the Water and Sewer Department shall be notified. It shall be unlawful to cover any connecting line until an inspection has been made and such connection and the work incident thereto has been approved by the City as a proper and suitable connection.

After the initial connection has been made to the water service curb stop box or the sewer lead at the property line or a water service or sewer lead has been extended to the property line for connection, the applicant, owner, or the occupant or user of such premises shall be liable for all repairs required to any water line or any sewer lines necessary for connection of the premises from the main to the premises. If the property owner requests maintenance services or repairs be performed by the City, the property owner shall be charged for the costs of the maintenance and/or repairs, including any necessary street repairs, at a rate set annually by an administrative policy. It shall be the responsibility of the applicant, owner, occupant or user to perform standard maintenance of the sewer service line from the premises to the main including debris clearing or root cutting and to maintain the water service curb stop box for operability and at such height as will ensure that it remains above the finished grade of the land or property. (Ref. 638, 1156, 1191)

The construction of new individual sewage treatment systems (ISTS) is prohibited in the City of Fridley. Existing individual sewage treatment systems meeting MN Rules Chapter 7080 standards may and shall be permitted to continue in use and operation until system is deemed failing by a licensed inspector during a biennial inspection or the property owner expands kitchen, bathroom, or bedroom areas. The use of a cesspool, outside toilet, or any other individual sewage treatment system not meeting standards set forth in MN Rules Chapter 7080 is strictly prohibited.

1. New Construction. All new houses, buildings, businesses, facilities, etc., producing wastes or discharges must be properly connected to the City of Fridley sewer system. Application for connection shall be made to the City Building Department and all connection fees shall be paid as provided by City Ordinances. No building permit shall be issued by the City after the effective date of this ordinance, unless the applicant shows compliance with the terms of this ordinance.
2. Existing Structures. Any existing houses, buildings, business or facilities presently utilizing their own septic systems, drainfield, soil absorption system, etc., shall be inspected by November 1, 2000 by a licensed inspector. After the initial inspection, systems must be inspected biennially by a licensed inspector and inspection results presented to the City of Fridley Building Department. All systems shall also be inspected prior to sale and/or transfer of title. All properties utilizing on site sewage treatment shall be connected to the City Sewer system prior to the issuance of any building permits for kitchen, bathroom, or bedroom expansions. Further, any such system presently in use, but which is revealed to be a failing system by inspection, shall be connected to the City of Fridley sewer system as soon as is practical but within 6 months of the time of failure. If the system is determined to be an immediate health hazard, the system must be connected immediately.
3. Abandoned Sewage Treatment Systems. All existing cesspools, drywells, septic tanks, or any other on-site sewage treatment systems which are abandoned and not in use shall be properly removed and/or filled immediately to State standards so as not to pose a danger to health and safety.

Hereafter, whenever and wherever any such private septic tank, cesspool or other type of private sewage system is damaged or defective and as a result thereof operates improperly creating an immediate health threat by exposing raw sewage to the grounds surface, then except as is further provided herein, connection shall be made to a public sewer immediately. Use of a defective system, or one in need of repair to eliminate a hazard to safety or health is deemed maintenance of a nuisance and is prohibited; and such nuisance may be abated according to law.

The City Manager may cause written notice of sewer and water requirements to be given to any person required by subsection 402.07 or 402.08 to make such repairs and connections. Such notice shall be mailed by certified mail or delivered by the Building Official or Code Enforcement Officer by order of the City Manager. In the event that (I.) any person, required by subsection 402.08 to connect an existing building to sanitary sewer mains where there is not an immediate health danger, fails to complete the making of such connection within 6 month after such written notice is given, or (ll.) any person required by section 402.08 to connect an existing system to sanitary mains due to system failure and immediate health threat fails to complete the making of such connection with 5 days after the written notice is given, the Council may by resolution direct that the required connection be made and the cost assessed against the benefited property as set forth in section 402.12. From the time of failure until connection, outflow must be plugged and tank pumped on a regular basis. Work must be done by a Certified septic installer and pumping schedules must be filed with City Building Department.

In any case where an owner deems himself or herself aggrieved by an order of the Building Official of the City or other representative of the City with respect to a private sewage disposal system and its continued use, the owner is entitled, upon giving notice and demand, to a hearing before the Council with respect thereto and before the order shall become final. Such notice and demand shall be made promptly and in no case later than five (5) days after receipt of any order from the City.

The “Waste Discharge Rules for the Metropolitan Disposal System” as adopted by the Metropolitan Council Environmental Services (MCES), is hereby adopted by reference and incorporated into and made a part of this Code as completely as if set out here in full.

Wherever the notice provided for in Section 402.09 is not complied with, the Council may, by resolution, direct the connection of such building or property to the public sewer system. The cost of all necessary appurtenances and the connection to public services shall be paid initially from the General Fund and then assessed by the Council against the property benefited. If the assessment is not paid to the City within ten (10) days after the City Clerk has served written notice in the same manner as provided for notice referred to in said section, the City Clerk shall certify the amount of the assessment to the County Auditor for collection in the same manner as other special assessments. The Council, by resolution, may provide for payment of the assessment in one (1) annual installment bearing interest at the current assessment rate from the expiration of such ten (10) day period.

There is hereby adopted by reference, and shall be in full force and effect in the City of Fridley as if set out here in full, the following rules, regulations and recommended practices as set forth in pamphlets published by the State of Minnesota, rules, regulations and recommended practices which shall be considered and construed as minimum codes and standards of the City of Fridley:

1. Rules, regulations and recommended practices for the design, construction and operation of sewage systems as set forth in Minnesota Rules Chapter 7080, dated 1995, published by the Minnesota Pollution Control Agency, as amended to date.
2. Rules, regulations and recommended practices on the type, design, construction and location of wells for potable water supply when connections to the municipal water system are not feasible as set forth in pamphlets entitled "Manual of Water Supply Sanitation", Section 11, dated 1956, Section V, dated 1956, and Section VII, dated 1957, all as published by the Minnesota Department of Health, Division of Environmental Sanitation, as amended to date.

Every person applying for water or sewer service and every owner of property for which any such application is made shall be deemed upon making such application to consent to all rules, regulations and rates set forth in this Chapter, and such further rules, regulations and rates as may thereafter be set forth and adopted by the City Council.

1. Before any water conveyed through the municipal water system shall be used or utilized on the land or premises of any person, firm or corporation, there shall first be installed a water meter that will accurately measure the water consumed on the premises, except and unless such installation shall be exempted by the City. The applicant for water service shall pay an amount to the City at the time of application for permit as set forth above, an amount determined by the City to be sufficient to cover the cost of the meter.
2. At such time as there is a change of meter, customer or property ownership for existing accounts, customers will be required to pay a one-time administrative set-up charge at the rate set annually by an administrative policy.
   1. Those persons, firms or corporations who require a meter of 1½” diameter or larger shall pay the full cost of the meter and its installation or replacement when such installation or replacement is requested by the customer or by the City.
   2. The City may provide a reasonable payment schedule for the charges and fees associated with Section 402.15.2.A. by an administrative policy.
3. All water meters installed under the provisions of this Chapter shall remain the property of the City of Fridley. The meters shall be repaired from time to time as is necessary to ensure accurate measuring of the flow of water. The City shall pay for the cost of repairs except when a meter has been damaged due to negligence on the part of persons other than employees of the Water Department, or applicable repairs or replacement pursuant to Section 402.15.2.A. The owner, occupant or user of the premises or such other person desiring use of the water shall reimburse the Water Department for the expense of repairing any such damaged meter. Upon failure to reimburse the Water Department within a reasonable time and upon demand therefore, the water service and supply to said premises may be shut off or discontinued as determined to be in the best interest of the City.
   1. Right of entrance. Every person owning improved real estate that has had a water meter installed shall allow duly authorized employees of the city or a designated representative of the City, bearing proper credentials and identification, to enter all properties for the purpose of reading, repairing, or replacing the meter, or for the purpose of installing an automated meter reading device (AMR).

It shall be unlawful for any person to tamper with, alter, by-pass or in any manner whatsoever interfere with the proper use and functioning of any water meter owned by the City.

1. The City may provide a system of water meter deemed suitable by the City Council. The City may also establish billing areas or districts and provide for the readings of meters and billing charges by month, by calendar quarters or monthly quarters, or such periodic intervals as the City Council shall determine suitable and necessary from time to time to the needs of the City. In the case of a post-card meter reading, each consumer shall mail or return the meter card on or before the due date. (Ref 1191)
2. Each consumer shall be assessed a one dollar ($1.00) penalty for any card not returned within seven (7) days of the due date.
3. A charge of ten dollars ($10.00) will be added to the bill if the meter reading post card is not returned to the City for the second consecutive quarter billing. (Ref 1191)
4. A charge of fifteen dollars ($15.00) will be added to the bill if the meter reading post card is not returned to the City for the third consecutive quarter. Such penalty and any use charges (based on an estimate of the water consumed) will be added to every quarterly billing thereafter if subsequently not read. (Ref 1191)
5. If the meter reading post card is not returned to the City for the fourth consecutive quarter, an ARM shall be installed on the property. The property owner shall pay a penalty equal to the full cost of the meter and installation which will be added to the bill. If the plumbing is substandard, the property owner will be responsible for bringing the plumbing up to code at their own expense.
   1. Refusal of Entry. Any person refusing to allow entry of a duly authorized employee or designated representative, as described in 402.15.3.A., shall be required to pay a penalty of $50.00 per month which shall be added to every subsequent utility bill. The penalty shall be added every month until the property owner is in compliance with this section. (Ref 1191)
6. The water rate charges shall be considered net charges and shall be the charges payable after the last day of the month or billing period in which the billings are sent out.
7. Payments not paid within thirty (30) days from the date of the bill will be assessed an additional ten percent (10%) penalty. (Ref. 662, 988)

The City reserves the right to discontinue service to any customer of the water and sewer system without notice when necessary for repairs, additional connection or reconnection or for non-payment of charges or bills or for disregard of any rules or regulations in connection with the use or operation of said system. Whenever any service has been discontinued for non-payment of charges or bills or for disregard of any rules or regulations, it shall not be resumed, except upon payment of the charges of bills accrued together with compliance with the rules or regulations previously violated and payment to the City of a restoration fee set annually by an administrative policy. (Ref. 1191)

In the event a water or sewer bill is unpaid at the end of the calendar quarter or the billing period under which the billing is sent out, the bill shall be considered delinquent and the service may be discontinued as provided in Section 402.18 above and the City Council may cause the charges noted in such billing to become a lien against the property served by certifying to the County the amount of said delinquent bill in accordance with Minnesota Statutes, Chapter 444. A penalty of ten percent (10%) will be assessed to all amounts certified to the County for collection. (Ref. 1191)

1. Water consumption, sewer, and storm water use charges to the consumer shall become due and payable quarterly each year on a calendar schedule or by monthly intervals or periods of time in accordance with a schedule prepared by the City Manager. (Ref. 464)
2. The water rates per quarter shall be set by Council Resolution.
3. The sewer rates per quarter shall be set by Council Resolution.
4. The storm water rates per quarter shall be set by Council Resolution. (Ref 1191)
5. Whenever the period of billing of charges for water, sewer, or storm water services is altered or changed, the minimum charge payable for such water, sewer, or storm water service may and shall be prorated as necessary in equity to the consumer for any period of time less or more than a full quarter of any period used. Such prorating is also authorized whenever the rate, minimum or otherwise, for water, sewer, or storm water services, is charged. (Ref 1191)

If a meter fails to register or accurately measure the water, the charge for water consumed shall be paid for at the established rate based upon past average billings as determined by the City Manager.

Any owner, occupant or user of a premises who discovers a leak in a service line to the premises shall notify the Water Department within 24 hours. Any water wasted due to failure of such person to comply with this regulation shall be estimated by the City Manager and charged against the owner of such premises at the established rate. (Ref. 113)

There shall be installed in every connection to the City water system one stop and waste valve which shall be installed at a point between the water service stop and the meter so that the water may be turned off and the meter and house plumbing entirely drained. There shall be installed another stop and waste cock in the pipe on the house side of the meter. All service pipes connected to the City systems shall be of a TYPE K copper or its approved equal and shall be laid at a depth not less than 6.5' below the finished grade, or as low as the street mains. (Ref 1191)

Any applicant, owner, occupant or user in applying for permission to connect to the City water and sewer systems shall have all work in connection therewith performed under the supervision of a plumber, licensed to do plumbing in the City of Fridley, except that nothing in this Chapter shall be construed as to prohibit an individual owner from obtaining a permit therefore provided that a person, firm or corporation actually performing the work be a plumber licensed to perform such work in the City.

Any applicant, owner, occupant or user who shall apply for a connection to the City water mains which connection shall be open at all times for the purpose of fire protection, shall apply in writing to the Water Department giving detailed information as to the size of main required, location of main and a copy of the plans of the system that shall be served by such connection. Such applicant shall furnish and install between the point of connection to the City main, a shut off valve or if the same be installed by the City, the cost thereof shall be paid by the said applicant. Such shutoff valve shall at all times be open for inspection purposes to the Water Department personnel, but maintenance and cost of repair of the valve and tap shall be the sole responsibility of the applicant desiring such service. In the event a single connection is made for the joint purpose of fire protection and potable water use, applicant shall split the connection line and provide separate shut off valves for each use, a minimum distance of 20 feet from the outermost point of the building. Such permit may be granted by the City upon such conditions as may be deemed by the City Council to be in the best interest of the City including requirement by the City of the installation of any valve and meter for water use detection purposes.

It shall be unlawful for any person, firm or corporation having such an open main for the purpose of the protection to make any connection to such main for any purpose other than the one noted in the original request to the Water Department.

The City shall not be held liable at any time for any deficiency or failure in the supply of water to the customer whether the same be occasioned by shutting off the water for repairs or connections, or for any cause whatsoever.

The City Council shall have the authority to prescribe the rates to be charged for water and sewer service to the customer from time to time and may prescribe the date of billing, a discount for the payment of any bill within a reasonable time, and such further rules and regulations relative to the use and operation of such systems as it may deem necessary from time to time.

1. Recitals. The Metropolitan Council Environmental Services (MCES), a metropolitan commission organized and existing under the laws of the State of Minnesota (the “MCES”), in order to receive and retain grants in compliance with the Federal Water Pollution Control Act Amendments of 1972 and regulations thereunder (the "Act"), has determined to impose an industrial user sewer strength charge upon users of the Metropolitan Disposal System, as defined in Minnesota Statutes, Section 473.121, Subdivision 24, and to recover operation and maintenance costs of treatment works attributable to the strength of the discharge of industrial waste, such sewer strength charge being in addition to the charge based upon the volume of discharge. In order for the City to pay such costs based upon strength of industrial discharge allocated to it each year by the MCES it is hereby found, determined and declared to be necessary to establish sewer strength charges and a formula for the computation thereof for all industrial users receiving waste treatment services within or served by the City. Furthermore, Minnesota Statutes, Section 444.075, Subdivision 3, empowers the City to make such sewer charge a charge against the owner, lessee, occupant or all of them and certify unpaid charges to the County Auditor as a tax lien against the property served.
2. Establishment of Strength Charges. For the purpose of paying the costs allocated to the City each year by the MCES that are based upon the strength of discharge of all industrial users receiving waste treatment services within or served by the City, there is hereby approved, adopted and established, in addition to the sewer charge based upon the volume of discharge, a sewer charge upon each company or corporation receiving waste treatment services within or served by the City, based upon strength of industrial waste discharged into the sewer system of the City (the "Strength Charge").
3. Establishment of Strength Charge Formula. For the purpose of computation of the Strength Charge established by Section 402.29.2, there is hereby established, approved and adopted in compliance with the Act the same strength charge formula designated in Resolution No. 76-1972 adopted by the governing body of the MCES on June 15, 1976, such formula being based upon pollution qualities and difficulty of disposal of the sewage produced through an evaluation of pollution qualities and quantities in excess of annual average base and the proportionate costs of operation and maintenance of waste treatment services provided by the Commission. (Ref 1191)
4. Strength Charge Payment. It is hereby approved, adopted and established that the Strength Charge established by Section 402.29.2 above shall be paid by each industrial user receiving waste treatment services and subject thereto before the twentieth (20th) day next succeeding the date of billing thereof to such user by or on behalf of the City, and such payment thereof shall be deemed to be delinquent if not so paid to the billing entity before such date. Furthermore, it is hereby established, approved and adopted that if such payment is not paid before such date an industrial user shall pay interest compounded monthly at the rate of two-thirds of one percent (2/3%) per month on the unpaid balance due.
5. Establishment of Tax Lien. As provided by Minnesota Statutes, Section 444.075, Subdivision 3, it is hereby approved, adopted and established that if payment of the Strength Charge established by Section 402.29.2 above is not paid before the sixtieth (60th) day next succeeding the date of billing thereof to the industrial user by or on behalf of the City, said delinquent sewer strength charge, plus accrued interest established pursuant to Section 402.29.4, shall be deemed to be a charge against the owner, lessee and occupant of the property served, and the City or its agent shall certify such unpaid delinquent balance to the County Auditor with taxes against the property served for collection as other taxes are collected; provided, however, that such certification shall not preclude the City or its agent from recovery of such delinquent sewer strength charge and interest thereon under any other available remedy. (Ref. 629)

It shall be unlawful for any person to tamper with, use, alter or damage any water line or connection of any type or part thereof or any fire hydrant, water service curb or valve box or street valves or any sewer line or connection of any type or part thereof without authority from the City. Any person who shall damage any part of the municipal water system, or any pipe or connection of any type or part thereof, including any hydrant or valve, or any part of the municipal sewer system or any pipe or connection of any type or part thereof, shall be liable for the damage or loss to the City caused thereby.

It shall be unlawful for any owner, occupant or user of any premises to direct into or allow any surface water to drain into the sanitary sewer system of the City of Fridley. (Ref 1191)

1. All installation work or repair of connections to the municipal sewer and water system, including grades, bends and back-filling shall be performed under the direction and supervision of the City Manager or the City Manager's designee. No work shall be covered or back-filled until directed by the City Manager or the City Manager's designee. All work and excavations shall be protected by barricades and warning markers and lights reasonable and suitable to the purpose. The City shall be held harmless of any claim or loss as might otherwise arise for damage or loss of injury caused by or arising by reason of such work being performed; and the applicant, owner or user performing or causing such work to be done shall give a report to the City with respect thereto.. No digging on any permanent type street shall be permitted except by special permission from the City.
2. Whenever a water user questions the accuracy of the meter, and desires that such meter be tested, such person shall reimburse the city for all testing costs plus an administrative fee set annually by an administrative policy if the meter tests accurate within a range of minus three percent (-3%) to plus one and one half percent (1-1/2%). If it is not accurate within this range, no charge will be made for testing and any administrative costs incurred. An adjustment on the water bill will be made for the period of time that the meter is assumed to be inaccurate. (Ref 1191)

In order to ensure an adequate water supply for human consumption, sanitary purposes, and fire fighting purposes, the City Council may establish by resolution water conservation regulations as they may be required from time to time. (Ref. 922)

Requests for turning off the water shall be made in writing thirty (30) days prior to the time for which payment has been made. Otherwise, the owner of the premises shall be liable for water rent for the next period.

The City Manager or any authorized employee or agent of the City shall have right to enter and be admitted to any lands and property in the City for the purpose of inspection of materials, plumbing work and fixtures of all kinds used by or in connection with the water and sewer systems. Any and all work, construction, alteration, repair, addition to, remodeling, moving, use, maintenance and occupancy of any building and the work and installation of any utility and appliance thereof and in use therewith to which the codes herein referred to apply shall be done and performed strictly in accordance with this Code. If, after inspection, any of the same are found not to be in accord with this Code, then the same shall be corrected upon notice from any duly authorized representative of the City of Fridley authorized to give such notice. If, after such written notice to any person performing any work which requires correction thereof, such person neglects or refuses to correct such work and fails to make the same conform to this and to the order of the City’s representative, the City by any of its duly authorized representatives may remove such work and charge the cost thereon to the person installing the same. No person shall cover any such work without the same being first duly inspected.

Whenever any premises are connected to the municipal water system, there shall be maintained a complete physical separation between the municipal water supply system and the private water supply system, so that it is impossible to intentionally or unintentionally allow any water produced by a private system to be introduced into the supply line from the municipal system.

Any water obtained by any person, firm or corporation from the municipal water system which is not paid for by the consumer or the user thereof by payment of water charges or rates determined by a meter shall be charged at and paid for by such consumer or user upon an estimate of the quantity of water used as computed at the established rate for such purpose or use, except that the Council may waive payment of such charge where deemed by the Council to be in the interest of the City.

It shall be the duty of such administrative personnel as designated by the City Manager to ensure compliance with the provisions of this Chapter.

Any violation of this Chapter is a misdemeanor and is subject to all penalties provided for such violations under the provisions of Chapter 9 of this Code.

In adopting this ordinance, the City Council finds that the discharge of water from any roof, surface, ground, sump pump, footing tile or other natural precipitation into the City sewage system will and has on numerous occasions in the past, flooded and overloaded the sewage system to such an extent as to cause significant and grave damage to the property of large numbers of city residents. Such damage is caused by the backup of sewage into the living quarters of residents, an increase in sewage treatment costs, and in addition to other damage creates a hazard to health. The City Council, therefore, finds it essential to the maintenance of health and to minimize sewage treatment costs and damage to property that the provisions of this ordinance be strictly enforced to avoid emergencies in the future.

No water from any roof, surface, ground, sump pump, footing tile, or other natural precipitation shall be discharged into the sanitary sewage system. Dwellings and other buildings and structures which require, because of the infiltration of water into basements, crawl spaces and the like, a sump pump system to discharge excess water, shall have a permanently installed discharge line which shall not at any time discharge water into the sanitary sewage system. A permanent installation shall be one which provides for year-around discharge capability to either the outside of the dwelling, building or structure, or is connected to the City storm sewer or discharges to the street or drainage easement. It shall consist of a rigid discharge line, without valving or quick connections for altering the path of discharge.

Before July 1, 1995, any person, firm or corporation having a roof, surface, ground, sump pump, or footing tile now connected and/or discharging into the sanitary sewer system shall disconnect and/or remove same. Any disconnects or openings in the sanitary sewer shall be closed or repaired in an effective, workmanlike manner, as approved by the City Building Inspector.

Every person owning improved real estate that discharges into the City's sanitary sewer system shall allow an employee of the City of Fridley or their designated representative to inspect the buildings to confirm that there is no sump pump or other prohibited discharge into the sanitary sewer system. In lieu of having the City inspect their property, any person may furnish a certificate certifying that their property is in and will remain in compliance with this Ordinance. Any person refusing to allow their property to be inspected or refusing to furnish a certificate within (14) days of the date City employees or their designated representatives are denied admittance to the property, shall become subject to the surcharge hereinafter provided for. Any property found to violate this Ordinance shall make the necessary changes to comply with the Ordinance and furnish poof of the changes to the City.

At any future time, if the City has reason to suspect that an illegal connection may exist in a premises, the owner, by written notice shall comply with the provisions of Paragraph 4 above.

There are a number of methods to dispose of sump pump effluent. The City's recommended solution is to pump the water into a cistern. Any property which has an existing illegal connection may apply for City financial assistance by requesting a City inspector to verify the illegal connection, have the repair completion verified and submit a receipt for labor and/or materials (self-help labor rate valued at $40). Upon verification of the corrective action and costs, the City will remit to the property owner one-half of the cost to correct the illegal connection to a maximum of $450 per installation. The property owner may petition the City to abate the problem and assess the property owners cost for the corrective work over a 3-year period. This incentive program is in effect until December 31, 1996.

A surcharge of $300 per quarter is hereby imposed and added to every sewer billing mailed on and after July 1, 1995 to property owners that are not in compliance with this ordinance. The surcharge shall be added for the entire quarter until the property is in compliance.

Any violation of this Chapter is a misdemeanor and is subject to penalties provided for such violations under provision of Chapter 901 of this Code.

This ordinance shall be effective from, and after its adoption and publication as provided by City Charter.

The following terms shall mean:

1. City. The City of Fridley, County of Anoka, State of Minnesota.
2. City Utility system. Facilities used for providing non-energy related public utility service owned or operated by the City or agency thereof, including sewer and water service, but excluding facilities for providing heating or other forms of energy.
3. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government that preempts all or part of the authority to regulate gas retail rates now vested in the Commission.
4. Company. Reliant Energy Minnegasco, a Division of Reliant Energy Resources Corporation, its successors and assigns, including successors to assignees of those portions of the Company that constitute any part or parts of the Gas Facilities subject to this franchise.
5. Effective date. The date on which the ordinance becomes effective under Chapter 404.2 hereof.
6. Gas. Natural gas, manufactured gas, mixture of natural gas and manufactured gas or other forms of gas energy.
7. Gas Facilities. Gas transmission and distribution pipes, mains, lines, ducts, fixtures, and all necessary facilities, equipment and appurtenances owned, operated or otherwise used by the Company for the purpose of providing gas energy for public use.
8. Non-Betterment Costs. Costs incurred by the Company from relocation, removal or rearrangement of Gas Facilities that do not result in an improvement to the Facilities.
9. Notice. A writing served by a party or parties on another party or parties. Notice to Company must be mailed to: Reliant Energy Minnegasco V.P. Marketing & Customer Services 800 LaSalle Avenue Minneapolis, MN 55402 Notices to City must be mailed to: City Clerk City of Fridley 7071 University Avenue N.E. Fridley, MN 55432-4383 Either party may change its respective address for the purpose of this Chapter by written notice to the other party.
10. Public Way. Any street, alley or other public right-of-way within the City.
    
11. Public Ground. Land owned or otherwise controlled by the City for parks, open space or similar public purpose.

1. Grant of Franchise. The City grants the Company, for a period of [twenty (20) years] from the Effective Date, the right to import, manufacture, transport, distribute and sell gas for public and private use within and through the limits of the City. This right includes the provision of Gas that is (i) manufactured by the Company or its affiliates and delivered by the Company, (ii) purchased and delivered by the Company or (iii) purchased from another source by the retail customer and delivered by the Company. For these purposes, the Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and across the Public Way and Public Ground subject to the provisions of this Chapter. The Company may do all things reasonably necessary or customary to accomplish these purposes, subject to other applicable ordinances, permit requirements and to further provision of this Chapter.
2. Effective Date. This franchise is effective from and after its acceptance by the Company Written acceptance or rejection of franchise by the Company must be filed with the City Clerk within sixty (60) days after publication of the Ordinance. If the Company fails to respond in writing within the above stated time, the franchise will be considered approved by both parties.
3. Nonexclusive Franchise. This is not an exclusive franchise.
4. Publication Expense. The expense of publication of this Chapter shall be paid by the Company.
5. Default and dispute Resolution. If the City or Company asserts that the other party is in default in the performance of any obligation hereunder, the complaining party must notify the other party in writing of the default and the desired remedy. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within thirty (30) days after service of the notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of the mediator. If a mediator is not used or if the parties are unable to resolve the dispute within thirty (30) days after first meeting with the mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity.
6. Continuation of Franchise. If this franchise expires and the City and the Company are unable to agree on the terms of a new franchise, the existing franchise and associated franchise fees imposed on the Company by separate ordinance as described in 404.7 of this Chapter, will remain in effect until a new franchise is agreed upon, or until 90 days after the City or the Company serves written Notice to the other party of their intention to allow the franchise agreement to expire.

1. Location of Facilities. Gas Facilities must be located, constructed, installed and maintained so as not to interfere with the existing City Utility System or the safety and convenience of ordinary travel along and over Public Ways. Gas Facilities may be located on Public Grounds as determined by the City. The company’s construction, reconstruction, operation, repair, maintenance and location of Gas Facilities is subject to other ordinances and regulations of the City with the requirements of such being no more restrictive than those applicable to other energy suppliers requiring the use of the Public Way.
2. Field Location. Upon request by the City, the Company must provide field locations for any of its Gas Facilities within the period of time required by Minnesota State Statute 216D.
3. Permit Required. The Company may not open or disturb the surface of any Public Way or Public Ground without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee. The permit conditions imposed on the Company may not be more burdensome than those imposed on other utilities for similar facilities or work. The Company may, however open and disturb the surface of any Public Way or Public Ground without a permit if (i) an emergency exists requiring the immediate repair of Gas Facilities and (ii) the Company gives notice to the City before, if possible, commencement of the emergency repair. Within two business days after commencing the repair, the Company must apply for any required permits and pay the required fees..
4. Restoration. After completing work requiring the opening of a Public Way or Public Ground, the Company must restore the same, including paving and its foundation, to the condition formerly existing and maintain the paved surfaces in good condition for two (2) years thereafter. The work must be completed as promptly as weather permits. If the company does not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and restore the Public Way or Public Ground, the City may, after demand to the Company to cure and the passage of a reasonable period of time not less than five (5) calendar days following the demand, make the restoration at the expense of the Company. The Company must pay to the City the cost of such work done for or performed by the City, including administrative expense and overhead plus ten percent of cost and administrative expense. This remedy is in addition to any other remedies available to the City for noncompliance with this section. Given the remedy outlined in this Chapter 404.3.4 available to the City for noncompliance by the Company, the City hereby waives any requirement for the Company to post a construction performance bond, certificate of insurance, letter of credit or any other form of security or assurance that may be required, under separate existing or future ordinance of the City.
5. Company Protection of Gas Facilities in Public Ways. The Company must take reasonable measures to prevent the Gas Facilities from causing damage to persons or property. The Company must take reasonable measures to protect the Gas Facilities from damage that could be inflicted on the Facilities by persons, property or the elements. The Company and the City will comply with all applicable laws and codes when performing work near the Gas Facilities.
6. Notice of Improvements. The City must give the Company reasonable notice of plans for improvements to Public ways or Public Ground. The notice must contain: (i) the nature and character of the improvements, (ii) the Public Ways or Public grounds upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Way or Public Ground is involved, the order in which the work is to proceed. The notice must be given to the Company a sufficient length of time in advance of the actual commencement of the work to permit the Company to make any necessary additions, alterations, or repairs to its Gas Facilities. If streets are at final width and grade and the City has installed underground sewer and water mains and service connections to the property line abutting the streets prior to a permanent paving or resurfacing of such streets, and the Company’s main is located under such street, the City may require the Company to install gas service connections prior to such paving or resurfacing, if it is apparent that gas service will be required during the five years following the paving or resurfacing.

1. Relocation of Gas Facilities in Public Ways. If the city determines by the property exercise of its police power to vacate a Public Way for a City improvement project, or to grade, re-grade or change the alignment of an Public way, or construct or reconstruct any City Utility System in any Public Way, the City may order the Company to relocate its Gas Facilities at the Company’s expense. The City must give the Company sufficient notice of plans to vacate for a City improvement project, or to grade, re-grade, or change the alignment of any Public way or to construct or reconstruct any City Utility System. If a relocation is ordered within five (5) years of a prior relocation of the same Gas Facilities, which was made at Company expense, the City will reimburse the Company on a time and material basis for Non-Betterment Costs. If any subsequent relocation is required because of the extension of a City Utility System to a previously unserved area, the City may require the Company to make the subsequent relocation at the Company’s expense. Nothing in this Chapter requires the Company to relocate, remove, replace or reconnect its Facilities at the Company’s expense where such relocation, removal, replacement or reconstruction is solely for the convenience of the city and is not reasonably necessary for the construction or reconstruction of a Public Way or City Utility System or other City improvement. The City will not require the removal of abandoned natural gas facilities, unless these facilities are in direct conflict with a Public Way grade change or proposed City Utility System or City improvement. The provisions of this section 4.1 apply only to Gas Facilities constructed in reliance on this franchise and the Company does not waive its rights under an easement in the Public Way.
2. Relocation of Gas Facilities in Public Ground. The City may, by the proper exercise of its police power, require the Company to relocate the Gas Facilities within or remove the gas Facilities from Public Ground upon a finding by City that the Gas Facilities have become or will become a substantial impairment of the public use or enjoyment to which the Public Ground is or will be put. The relocation or removal will be at the Company’s expense. The provisions of this Chapter 4.2 apply only to Gas Facilities constructed in reliance on this franchise and the Company does not waive its rights under an easement or prescriptive right in the Public Ground. The City will not require the removal of abandoned Gas Facilities in Public Ground, unless these facilities have become or will become a substantial impairment of the public use or enjoyment to which the Public Ground is or will be put.
3. Vacation of Public Ways. The City must give the Company at least three weeks Notice of the proposed vacation of a Public Way. Except where required for a City street or other improvement project or as otherwise provided in Chapter 4.1, the Vacation of a Public Way, after the installation of Gas Facilities, does not deprive the Company of its rights to operate and maintain the Gas Facilities until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to the Company by the City. If the vacation of Public way does not require the relocation of existing Gas Facilities, the City shall reserve a utility easement to the Company, created by and within the document establishing the vacation, or the City will preserve a right-of-way in the manner permitted by law.
4. Projects with Federal Funding. Relocation, removal or rearrangement of any Gas Facilities made necessary because of the extension into or through the City of a federally-aided highway project shall be governed by the provisions of Minnesota Statutes, Section 161.46.

1. Terms. The Company shall indemnify, keep and hold the City, its elected officials, officers, employees, and agents free and harmless from any and all claims and actions on account of injury or death of persons or damage to property occasioned by the construction, maintenance, repair, or removal of Gas Facilities on or across the Public Way and the Public Ground of the City, unless or operation of the Company's property located in, on, over, under, or across the Public Ground of the Municipality, unless such injury or damage is the result of the negligence of the City, its elected officials, employees, officers, or agents. The City shall not be entitled to reimbursement for its costs incurred prior to notification to the Company of claims or actions and a reasonable opportunity for the Company to accept and undertake the defense.
2. Litigation. If such a suit is brought against the City under circumstances where the agreement in this Section 5 as to indemnify applies, the Company, at its sole cost and expense, shall defend the City in such suit if Notice thereof is promptly given to the Company within a reasonable period. If the Company is required to indemnify and defend, it will thereafter have control of such litigation, but the Company may not settle such litigation without the consent of the City, which consent will not be unreasonably withheld. This section is not as to third parties a waiver of any defense or immunity otherwise available to the City; and the Company, in defending any action on behalf of the City is entitled to assert in any action every defense or immunity that the City could assert in its own behalf.

This Chapter and the rights and obligations conferred hereby, is binding on and inures to the benefit of the City and its successors and on the Company and its successors and permitted assigns.

1. Separate Ordinance. During the term of the franchise hereby granted, and in lieu of any permit, licensing, or other fees, charges, or costs imposed on the Company for providing gas service or performing work necessary to provide gas service in the City during the term of this franchise, the City may impose on the Company a franchise fee. In addition to the franchise fee, the Company shall be required to pay only such other fees, charges, costs or taxes which are generally required to be paid by other businesses or persons in the City. The franchise fee must be imposed by a separate ordinance adopted by the City Council, which ordinance may not be adopted until at least 60 days after Notice enclosing such proposed ordinance has been served upon the Company by certified mail. A fee imposed under this section does not become effective until 60 days after Notice enclosing the adopted ordinance has been served upon the company by certified mail.
2. Condition of Fee. The separate ordinance imposing the fee shall not be effective against the Company unless it lawfully imposes a fee or tax of the same or great equivalent amount on the sale and/or delivery of energy within the City by any other energy supplier, provided that, as to such supplier, the City has the authority to require a franchise fee or impose a tax. The Company may petition the City to exempt the franchise fee applicable to customers who (i) physically bypass or (ii) unequivocally document in writing their intention and ability to physically bypass the Company’s Gas Facilities for economic reasons, including the existence of a franchise fee The City shall not unreasonably without such exemption in franchise fees for such customers.
3. Calculation of Fee. The City may impose the franchise fee: (i) as a combination of percentage of gross revenues received from customers in the Residential Customer Class for its utility operations within the City and as a flat meter fee per customer, for customers in non-residential customer classes, or (ii) as a flat meter fee per customer within the City, or (iii) as a fee based on units of gas delivered to any class of retail customers within the corporate limits of the City. The method of imposing the franchise fee described above: percent of revenue (i), flat fee (ii), or per unit fee (iii), may differ for each customer class. If prior to the expiration of this ordinance, customers in Minnegasco’s Residential Customer class begin to purchase and/or transport gas from companies other than Minnegasco, the City my only impose the flat fee method (ii) or the units of gas method (iii), as a way of collecting fees. If the percentage of gross revenue method (I) has previously been implemented, it must be changed to method (ii) or method (iii).
4. Collection of the Fee. The franchise fee will be payable not less than quarterly and based on any of the alternative formulas described in Chapter 407.3 during complete billing months of the period for which payment is to be made. The franchise fee formula may be changed by ordinance from time to time, however, each change must meet the same notice requirements and may not be made more often than annually. The fee may not exceed any amount that the Company may legally charge to its customers, prior to payment to the City, by imposing a surcharge equivalent to such fee in its rates of gas service. The Company may pay the City the fee based upon the surcharge billed, subject to subsequent reductions for uncollectibles or customer refunds. The Company agrees to make available for inspection by the City at reasonable times all records necessary to audit the company’s determination of the franchise fee payments.

This Chapter constitutes a franchise agreement between the City and the Company. No provision of this franchise inures to the benefit of any third person, including the public at large, so as to constitute any such person as a third-party beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action for any person not a party hereto.

This franchise supersedes and replaces previous franchises granted to the Company or its predecessors.

This Chapter may be amended at any time by the City. An amendatory ordinance becomes effective upon the filing of the Company’s written consent thereto.

Any change in the form of government of the City shall not affect the validity of this franchise. Any governmental unit succeeding the City shall, without the consent of the Company, succeed to all of the rights and obligations of the City provided in this franchise.

If any portion of this franchise is found unenforceable for any reason, the validity of the remaining provisions will not be affected.

1. 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.
   1. “Access Channels” means any channel or portion of a channel utilized for public, educational or governmental programming.
   2. “Affiliate” shall mean any Person controlling, controlled by or under common control of Grantee.
   3. “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 by any governmental authority of competent jurisdiction.
   4. “Basic Cable Service” means any service tier which includes the lawful retransmission of local television broadcast.
   5. “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.
   6. “Cable Service” shall be defined as set forth in Applicable Law, currently 47 U.S.C. § 522 (6), and currently defined as (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.
   7. “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 constructed and operated in the City under this Franchise.
   8. “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.
   9. “City” shall mean the City of Fridley, a municipal corporation in the State of Minnesota.
   10. “City Code” means the Municipal Code of the City of Fridley, Minnesota, as may be amended from time to time.
   11. “Connection” means the attachment of the Drop to the television set of the Subscriber.
   12. “Converter” means an electronic device, including digital transport adapters, 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.
   13. “Council” shall mean the governing body of the City.
   14. “Day” unless otherwise specified shall mean a calendar day.
   15. “Drop” shall mean the cable that connects the Subscriber terminal to the nearest feeder cable of the cable.
   16. “Effective Date” shall mean 60 days from date of the City’s approval of this Franchise.
   17. “Expanded Basic Service” means the next tier of service above the Basic Cable Service tier excluding premium or pay-per-view services.
   18. “FCC” means the Federal Communications Commission, or a designated representative.
   19. “Franchise” shall mean the right granted by this Franchise Ordinance and conditioned as set forth herein.
   20. “Franchise Area” means the entire geographic area within the City as it is now constituted or may in the future be constituted.
   21. “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).
   22. "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).
   23. “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 Franchise Area. Gross Revenues include, by way of illustration and not limitation:
       1. monthly fees for Cable Services regardless of whether such Cable Services are provided to residential or commercial Subscribers, including revenues derived from the provision of all Cable Services (including but not limited to pay or premium Cable Services, digital Cable Services, pay-per-view, pay-per-event, audio channels, and video-on-demand Cable Services);
       2. installation, disconnection, reconnection, downgrade, upgrade, maintenance, repair or similar charges associated with Subscriber Cable Service levels;
       3. fees paid to Grantee for Channels designated for commercial/ leased access use which shall be allocated on a pro rata basis using total Cable Service Subscribers within the Franchise Area;
       4. Converter, remote control, and other Cable Service equipment rentals, leases, or sales;
       5. Payments for prepaid Cable Services and/or equipment;
       6. Advertising revenues as defined herein;
       7. Fees including, but not limited to;
          1. late fees, convenience fees, administrative fees and other multiservice revenues, which shall be allocated on a pro rata basis using Cable Services revenue as a percentage of total Subscriber revenues within the Franchise Area;
          2. revenues from program guides;
          3. Franchise Fees;
          4. FCC regulatory fees;
          5. Except as provided in subsection 9 below, any fee, tax, including without limitation, the City’s utility tax, or other charge assessed against Grantee by City, which Grantee chooses to pass through and collect from its Subscribers; and
          6. commissions from home shopping channels and other Cable Service revenue sharing arrangements which shall be allocated on a pro rata basis using total Cable Service Subscribers within the City.
       8. “Gross Revenues” shall include amounts earned by Affiliates only to the extent that Grantee could, in concept, have earned such types of revenue in connection with the operation of Grantee’s Cable System to provide Cable Services and recorded such types of revenue in its books and Records directly, but for the existence of Affiliates.
       9. “Advertising Revenues” shall mean revenues derived from sales of advertising that are made available to Grantee’s Cable System Subscribers within the Franchise Area and shall be allocated on a pro rata basis using total Cable Service Subscribers reached by the advertising. Additionally, Grantee agrees that Gross Revenues subject to Franchise Fees shall include all commissions, representative fees, affiliated entity fees, or rebates paid to the National Cable Communications and Comcast Spotlight or their successors associated with sales of advertising on the Cable System within the City allocated according to this paragraph using total Cable Service subscribers reached by the advertising.
       10. “Gross Revenues” shall not include:
           1. actual bad debt write-offs, except any portion which is subsequently collected which shall be allocated on a pro rata basis using Cable Services revenue as a percentage of total Grantee revenues within the Franchise Area;
           2. Public, Educational and Governmental (PEG) Fees; and
           3. unaffiliated third party advertising sales agency fees which are reflected as a deduction from revenues.
       11. To the extent revenues are received by Grantee for the provision of a discounted bundle of services which includes Cable Services and non-Cable Services, Grantee shall calculate revenues to be included in Gross Revenues using a methodology that allocates revenue on an approximate pro rata basis when comparing the bundled service price and its components to the sum of the published rate card, except as required by specific federal, state or local law, it is expressly understood that equipment may be subject to inclusion in the bundled price at full rate card value. This calculation shall be applied to every bundled service package containing Cable Service from which Grantee derives revenues in the City. The City reserves its right to review and to challenge Grantee’s calculations.
       12. Grantee reserves the right to change the allocation methodologies set forth in paragraph 10 above to meet the standards mandated by the Financial Accounting Standards Board (FASB), Emerging Issues Task Force (EITF) and/or the U.S. Securities and Exchange Commission (SEC). Grantee will explain and document the required changes to the City as part of any audit or review of Franchise Fee payments, and any such changes shall be subject to subparagraph (xii) below.
       13. Resolution of any disputes over the classification of revenue should first be attempted by agreement of the parties, but should no resolution be reached, the parties agree that reference shall be made to GAAP as promulgated and defined by the FASB, EITF and/or the SEC. Notwithstanding the forgoing, the City reserves its right to challenge Grantee’s calculation of Gross Revenues, including the interpretation of GAAP as promulgated and defined by the FASB, EITF and/or the SEC.
       14. Subject to the provisions of subsection 13, nothing in this definition of Gross Revenues shall in any way serve to waive the City’s right to receive the maximum 5% Franchise Fee as set forth in 47. U.S.C. Section 542, irrespective of whether the City chooses to receive its compensation in cash or in in-kind services, to the extent “in-kind” services are considered part of the 5% Franchise Fee cap under Applicable Law. Neither the Grantee nor the City waive any rights either party may have regarding enforcement of all rights set forth in 47. U.S.C. Section 542.
   24. “Minnesota Cable Communications Act” means the provisions of Minnesota law governing the requirements for a cable television franchise as set forth in Minn. Stat. Chapter 238, as may be amended.
   25. “Minnesota Government Data Practices Act” means the provisions of Minnesota law governing the requirements for public records as set forth in Minn. Stat. Chapter 238.
   26. “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 night per week and/or some weekend hours.
   27. “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 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.
   28. “PEG” means public, educational and governmental.
   29. “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.
   30. “Street” shall mean the surface of and the space above and below any public Street, road, highway, freeway, lane, path, trail, 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.
   31. “Subscriber” means a Person who lawfully receives Cable Service.
   32. “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.

1. Grant of Franchise. 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. Unless this Franchise has expired pursuant to Section 2.8 herein or this Franchise is otherwise terminated pursuant to Section 11.2 herein, this 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.
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 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.
3. Franchise Term. The term of the Franchise shall be ten years from the Effective Date, unless extended by mutual written consent in accordance with Section 17.7 or terminated sooner in accordance with this Franchise.
4. Franchise Area. This Franchise is granted for the Franchise Area defined herein. Grantee shall extend its Cable System to provide Service to any residential unit in the City in accordance with Section 6.7 herein.
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 17.23. 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. § 238.08 and any other applicable federal level playing field requirements.
6. Periodic Public Review of Franchise. Within 60 days of the 3rd and 6th annual anniversary of the Effective Date of this Franchise, 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 17.7 of this Franchise.
7. Transfer of Ownership.
   1. 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.
   2. City may determine that a public hearing is necessary due to potential adverse effect on Grantee’s Subscribers resulting from the sale or transfer.
   3. If a public hearing is deemed necessary pursuant to (b) above, such hearing shall be commenced within 30 days of such determination and notice of any such hearing shall be given in accordance with local law. 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.
   4. 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.
   5. The parties to a 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.
   6. 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 2.7. The term “controlling interest” as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised.
   7. 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.
   8. In accordance with Minn. Stat. § 238.084, Subd. 1(y), the City shall have the right to purchase the System in the event the Franchise or System is proposed to be transferred or sold on the same terms and conditions as the offer pursuant to which transfer notice was provided pursuant to this section. The City shall have 30 days from receipt of an application for consent under this Section 2.7 in which to give notice of its intention to exercise such right.
8. Expiration. Upon expiration of the Franchise, the City may, subject to Grantee’s rights under Section 626 of the Cable Act:
   1. extend the Franchise, though nothing in this provision shall be construed to require such extension;
   2. renew the Franchise, in accordance with Applicable Laws;
   3. invite additional franchise applications or proposals;
   4. terminate the Franchise subject to any rights Grantee has under Section 626 of the Cable Act; or
   5. take such other action as is compliant with Applicable Law.
9. 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 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. However, Grantee shall have no obligation to remove the Cable System where it utilizes the System to provide other non-Cable Services to the extent Grantee has authority under Applicable Law to maintain facilities in the Streets, and subject to Grantee’s obligation to apply for and secure a right-of-way permit from the City, if applicable.
10. 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.

1. Use of Streets.
   1. Grantee may, subject to the terms of this Franchise and the City Code, 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, 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.
   2. 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.
   3. All wires, conduits, cables and other property and facilities of Grantee, shall be constructed and installed in an orderly and professional manner in accordance with all Applicable Laws.  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.
2. Construction or Alteration. Grantee shall in all cases comply with applicable sections of 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. 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.
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 use is inconsistent with the terms, conditions or provisions by which such Street was created or dedicated, or presently used under Applicable Laws.
5. Undergrounding. 
   1. 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:
      1. all other existing utilities are required to be placed underground by statute, resolution, policy or other Applicable Law;
      2. Grantee is unable to get pole clearance;
      3.  underground easements are obtained from developers of new residential areas; or
      4. subject to technical and economic feasibility, utilities are overhead but residents prefer underground (undergrounding to be handled in accordance with the City Code provided at cost paid by benefited residents).
   2. 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. 
   3. 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.
6. Maintenance and Restoration.
   1. Restoration. In case of disturbance of any Street, public way, paved area or public improvement, Grantee shall, at its own cost and expense and in accordance with the requirements of the City Code 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 requirements of this section pertaining to public property shall also apply to the restoration of private easements and other private property.  Grantee shall perform all restoration work within a reasonable time and with due regard to seasonal working conditions, but not to exceed 90 days.  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 damage to private property in the process of restoring facilities, Grantee shall repair such damage.
   2. Maintenance. Grantee shall maintain all above ground improvements that it places on City Streets 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 Streets, 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.
   3. 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.
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.
8. Relocation.
   1. Public Property. Grantee shall relocate its System and facilities in accordance with the City Code.  In addition,  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 right-of-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.
   2. 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.
   3. Notice to Remove or Relocate. Any Person requesting Grantee to remove or relocate its facilities shall give Grantee no less than 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.
   4. 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.
   5. 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.
   6. 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 15 days’ notice to the Grantee to arrange for such temporary wire changes.

1. Removal of Cable System. In the event that: (l) the use of the Cable System is discontinued for any reason for a continuous period of 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 aerial portion of the Cable System other than any which the City may permit to be abandoned in place. In the event of any such removal Grantee shall promptly restore the Street to a 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 in accordance with all requirements of the City Code and Section 2.9 herein. However, Grantee shall have no obligation to remove the Cable System where it utilizes the system to provide other non-Cable Services and has any other authority under Applicable Law to maintain facilities in the public rights-of-way, or where Grantee is able to find a purchaser of the Cable System, acceptable to the City, who holds such authorization.
2. Abandonment of Cable System. In the event of Grantee’s abandonment of the Cable System, 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 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.
3. Removal after Abandonment or Termination. If Grantee has failed to commence removal of System, or such part thereof as was designated by City, within 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 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. City Options for Failure to Remove Cable System.
   1. 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:
      1. Declare all right, title and interest to the System 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
      2. Declare the System abandoned and cause the System, 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.
   2. 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.
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 to the National Electrical Safety Code, the National Electrical Code and the FCC’s Rules and Regulations.
6. System Maps and Layout. Grantee shall comply with Section 407.21 of the Fridley City Code. City agrees to enforce the requirements of Section 407.21 in a uniform and nondiscriminatory manner against all applicable “Telecommunication Rights-of-Way User” in the City. City agrees keep the information confidential as set forth in Section 13.3 of this Franchise if it is designated so by Grantee.

1. Availability of Signals and Equipment.
   1. The Cable System utilizes a fiber to the fiber node architecture, with fiber optic cable deployed from Grantee’s headend to Grantee’s fiber nodes, tying into Grantee’s coaxial Cable System serving Subscribers. The System is currently passing a minimum of 750 MHz (with a minimum passband of between 50 and 750 MHz) and shall be capable of providing to Subscribers at least 200 or more activated minimum downstream video Channels, or such comparable video viewing capability as is provided in light of developing technologies and video distribution practices in the future.
   2. The entire System shall be technically capable of transmitting industry-standard digital television signals in a manner and quality consistent with applicable FCC regulations.
   3. 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.
2. System Specifications.
   1. 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.
   2. 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 insofar as the City’s process is consistent with the Minnesota State Emergency Statewide Plan (“EAS Plan”). The City may also develop a local plan containing methods of EAS message distribution, insofar as the local plan is consistent with Applicable Laws and the EAS Plan.
   3. Standby Power. Grantee shall provide standby power generating capacity at the Cable System control center and at all hubs. Grantee shall maintain standby power system supplies, rated at least at two 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 hours.
   4. Technical Standards. The technical standards used in the operation of the Cable System shall comply, at minimum, with the 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 and in such manner that the Cable System shall not interfere with any installations of the City.
3. Performance Testing. Grantee shall perform all 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:
   1. Tests required by the City to demonstrate Franchise compliance; and
   2. Written records of all system test results performed by or for Grantee shall be maintained as required by FCC regulations, and shall be available for City inspection upon request.
4. Special Testing.
   1. 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.
   2. Before ordering such tests, Grantee shall be afforded 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 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 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.

1. Categories of Programming Service. Grantee shall provide video programming services in at least the following broad categories:
   1. Local Broadcast (subject to federal carriage requirements)
   2. Public Broadcast
   3. News and Information
   4. Sports
   5. General Entertainment
   6. Arts/Performance/Humanities
   7. Science/Technology
   8. Children/Family/Seniors
   9. Foreign Language/Ethnic Programming
   10. PEG Access Programming (to the extent required by the Franchise)
   11. Movies
   12. Leased Access
2. Changes in Programming Services. Grantee shall provide at least 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, in accordance with Applicable Law.
3. Parental Control Device or Capability. Upon request by any Subscriber, Grantee shall make available a parental control or lockout device or functionality 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 or functionality at the time of original subscription and annually thereafter.
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 days of the conduct of the date of the tests.
5. Limitation on Free Service.
   1. The parties acknowledge that as of the Effective Date of this Franchise, Grantee continues to provide Complimentary Services to certain schools, libraries and public institutions within the Franchise Area as set forth in Exhibit A. In the event Grantee elects, to the extent permitted by Applicable Laws, to invoice the City for Complimentary Services, the Grantee agrees that it will do so only after providing City with 120 days’ prior written notice. Grantee agrees not to unfairly or unreasonably discriminate against the City with respect to other Minnesota served local franchising authorities, with respect to the costs to be imposed for Complimentary Services.
   2. The City shall have right to discontinue receipt of all or a portion of the Complimentary Service provided by Grantee in the event Grantee elects to impose a charge against the City for the Complimentary Service as set forth in the preceding paragraph.
6. 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 be subject to all the terms of this Franchise upon 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.
7. Line Extension.
   1. Grantee shall construct and operate its Cable System so as to provide Cable Service within the Franchise Area where there exists a density equivalent of seven dwelling units 1/4 mile of feeder cable as measured from the nearest active plant of the Cable System if the extension is to be constructed using aerial plant, and nine dwelling units per 1/4 mile of feeder cable as measured from the nearest active plant if the extension is to be constructed using underground plant. The City, for its part, shall endeavor to exercise reasonable efforts to require developers and utility companies to provide the Grantee with at least 15 days advance notice of an available open trench for the placement of necessary cable.
   2. Where the density is less than specified above, and if it is in Grantee’s regular business practices, Grantee shall inform Persons requesting Service of the possibility of paying for installation or a line extension and shall offer to provide them with a free written estimate of the cost, which shall be provided within a reasonable time and if a significant delay is likely Grantee will provide an estimate of when the bid estimate can be provided. Grantee may offer the Persons requesting service the opportunity to “prepay” some or all of the necessary line extensions according to its regular business policies. Grantee shall at all times implement such line extension policy in a nondiscriminatory manner throughout the City.
   3. Any residential unit located within 125 feet from the nearest point of access on the Street from which the Cable System is designed to serve the site shall be connected to the Cable System at no charge other than the standard installation charge. Grantee shall, upon request by any potential Subscriber residing in City beyond the 125 foot limit, extend service to such Subscriber provided that the Subscriber shall pay the net additional Drop costs, unless the Grantee agrees to waive said costs. To the extent consistent with Applicable Laws, Grantee agrees that it shall impose installation costs for non-standard installations in a uniform and nondiscriminatory manner throughout the City.
8. Nonvoice Return Capability. Grantee is required to use cable and associated electronics having the technical capacity for nonvoice return communications.

1. Number of PEG Access Channels.
   1. Grantee will make available a minimum of three PEG Access Channels for the Franchise term and shall offer them in standard definition (SD) format. Grantee shall provide the Access Channels on the Basic Cable Service tier.
   2. PEG Access Channels and programming may be delivered by City to Grantee in SD or high definition (HD) format as set forth herein. Grantee shall provide all necessary transmission equipment from the demarcation point and throughout Grantee’s distribution system, in order to deliver the PEG Access Channels to Subscribers. PEG Access Channel signals delivered in HD format to Grantee shall not require Grantee to deliver such HD signals to Subscribers except as set forth in this Section 7.
   3. Grantee will continue to carry the PEG Access Channels in SD format as long as there are SD Channels in Grantee’s Basic Cable Service tier. If Grantee discontinues carriage of SD Channels, all of the PEG Access Channels shall be carried in HD format.
2. High Definition PEG Access Channels.
   1. Upon the Effective Date of this Franchise Grantee shall have 90 days to provide the City with one (1) PEG Access Channel in HD. The City shall have the sole discretion to determine which of its Channels will be simulcast in HD without content restrictions imposed by Grantee except for the requirement contained in this Section 7. HD PEG Access Channels will be carried on the Cable System without degradation. Following implementation of the HD PEG Access Channel as set forth in this Section 7.2 (a), Grantee will maintain the three (3) SD PEG Access Channels required by Section 7.1 resulting in three SD PEG Access Channels and one HD PEG Access Channel.
   2. Effective October 1, 2021, the City may, upon 90 days’ advance written notice to Grantee, require that Grantee provide one additional PEG Access Channel in HD (for a total of two HD PEG Access Channels) in accordance with the technical and other requirements of subparagraph (a) above. Following implementation of the second PEG HD Access Channel required by Section 7.1 resulting in three SD PEG Access Channels and two HD PEG Access Channels.
   3. Grantee will make available the second HD PEG Access Channel conditioned upon the City affirming in writing that it has ready and available a minimum of 100 hours of locally produced HD content that has not been carried on the existing HD PEG Access Channel.
   4. The content of the HD PEG Access Channel is up to the City. The City may choose to provide Subscribers an HD PEG Access Channel that is programmed differently than the existing SD PEG Access Channels (for example, the City could create a “best of” PEG Access Channel that carries a combination of HD public, educational and government programming from the existing three (3) SD PEG Access Channels). If an HD PEG Access Channel is programmed differently, the Grantee would have no additional obligation to provide an SD simulcast of that Channel.
   5. The City shall, in its written notice to Grantee as provided for in Section 7.2 (a) and (b) above, confirm that the City, or City’s designated access provider (i.e. school district), has the capability to produce, has been producing and will produce programming in an HD format for the newly activated HD PEG Access Channel(s).
   6. The City acknowledges that receipt of an HD format PEG Access Channel may require Subscribers to buy or lease special equipment, or pay additional HD charges applicable to all HD services.
   7. Any costs of end-user equipment associated with the delivery of SD PEG channels in HD format beyond the demarcation point shall be borne by the City and Grantee shall provide the City with a written invoice, if available to Grantee, specifying the costs for any such equipment. The City shall have the right to pay for such equipment out of the PEG Fee set forth in Section 7.13 of this Franchise.
   8. The City is responsible for acquiring all equipment necessary to produce programming in HD and may be paid for out of the PEG Fee set forth in Section 7.13 of this Franchise.
   9. Grantee shall have the right to use any technology to deploy or deliver HD signals (including selection of compression, utilization of IP and other processing characteristics) so long as it produces signal quality for the consumer that is reasonably comparable (from the viewer’s standpoint) and functionally equivalent to similar commercial HD signals carried on the cable system.
3. Control of PEG Access Channels. The control and administration of the PEG Access Channels shall rest with the City. 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.
4. Transmission of Access Channels. PEG 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.
5. PEG Access Channel Locations.
   1. PEG Access Channels shall be carried on the Basic Cable Service tier as set forth in Section 7.1 herein. Nothing herein precludes the Grantee from charging for equipment needed for Basic Cable Service. Grantee shall make every reasonable effort to coordinate cablecasting PEG Access programming on the Cable System on the same Channel designations as such programming is cablecast within the City as of the Effective Date. In no event shall any PEG Access Channel reallocations be made prior to 90 days written notice to the City by Grantee, except for circumstances beyond Grantee’s reasonable control. The PEG Access Channels are presently located on Channels 14, 15 and 17.
   2. Grantee agrees not to encrypt the PEG Access Channels differently than other commercial Channels available on the Cable System.
   3. Grantee shall make reasonable efforts to minimize Channel movements for PEG Access Channels, and shall make reasonable efforts to locate PEG Access Channels in its lineup in a manner that is easily accessible to Subscribers. In the event a PEG Access Channel is moved, Grantee, at Grantee’s expense, will place City’s notices of the PEG Access Channel change on its regular monthly billings, upon City’s request.
   4. In conjunction with any occurrence of any SD PEG Access Channel(s) relocation, Grantee shall provide up to $5,000 of reimbursement for costs incurred by City to promote the new Channel locations.
6. Navigation to PEG Access Channels/Electronic Programming Guide. Grantee agrees that if it utilizes a visual interface under its control on its Cable System for all Channels, the PEG Access Channels shall be treated in a non-discriminatory fashion consistent with Applicable Laws so that Subscribers will have ready access to PEG Access Channels. Grantee will continue to make available to City the ability to place PEG Access Channel programming information on the interactive channel guide via the electronic programming guide (“EPG”) vendor (“EPG provider”) that Grantee utilizes to provide the guide service. Grantee will be responsible for providing the designations and instructions necessary for the PEG Access Channels to appear on the EPG. All costs and operational requirements of the EPG provider shall be the responsibility of the City. City acknowledges that the EPG is not technically possible for all PEG Access programming, and that Grantee is not responsible for operations of the EPG provider.
7. Ownership of PEG 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.
8. Noncommercial Use of PEG. Permitted noncommercial uses of the PEG 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 PEG Access Channel.
9. Dedicated Fiber Return Lines. Grantee shall maintain all existing fiber paths for PEG transport in the City. Such fiber transports are listed in Exhibit A attached hereto. To the extent specifically authorized by Applicable Law, Grantee shall have the right to recoup the maintenance costs associated with the PEG transport as set forth in this Section 7.9. Grantee shall invoice the City for such maintenance costs in accordance with the requirements of Applicable Law. Grantee shall not be responsible for fiber “replacement” but will handle any damage and all maintenance on the existing fiber. Grantee anticipates, but cannot guarantee, that that this will result in minimal fiber expenditures by the City over this Franchise term.
10. 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.
11. Future Fiber Return Lines for PEG.
    1. At such time that the City determines:
       1. 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 7.9); or
       2. that the City desires to establish or change a location from which PEG programming is originated; or
       3. that the City desires to upgrade the connection to Grantee from an existing signal point of origination, the City may elect to give Grantee written notice detailing the point of origination and the capability sought by the City. Upon receipt of such notice, 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 $25,000. The cost estimate shall not exceed the fair market value of the requested facility. 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. Grantee agrees that it shall not impose any recurring charge for the use of connections/ facilities.
12. PEG Access Channel Carriage.
    1. Grantee shall provide all necessary transmission equipment, at no cost to the City, from the demarcation point and throughout Grantee’s distribution system in order to deliver the PEG Access Channels. Any and all costs associated with any modification of the PEG Access Channels or signals after the PEG 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 PEG Access Channel, except by oral or written permission from the City, with the exception of emergency alert signals.
    2. The City may request and Grantee shall provide an additional PEG Access Channel when the cumulative time on all the existing PEG Access Channels combined meets the following standard: whenever one of the PEG Access Channels in use during 80% of the weekdays, Monday through Friday, for 80% of the time during a consecutive three hour period for six weeks running, and there is a demand for use of an additional Channel for the same purpose, the Grantee has six months in which to provide a new, PEG 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.
    3. The VHF spectrum shall be used for one of the public, educational, or governmental specially designated PEG Access Channels.
    4. The City or its designee shall be responsible for developing, implementing, interpreting and enforcing rules for PEG Access Channel use.
    5. The Grantee shall monitor the PEG Access Channels for technical quality to ensure that they meet FCC technical standards including those applicable to the carriage of PEG 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 PEG Access Channel including, but not limited to, closed captioning, stereo audio and other elements associated with the programming.
13. PEG Access Channel Support.
    1. Effective with the first Subscriber bill after the Effective Date of this Franchise, Grantee shall collect a, per Subscriber, per month fee (“PEG Fee”) of 55¢. Grantee shall retain the 55¢ per month, per Subscriber PEG Fee to reimburse Grantee for the equipment grant from the previous franchise until the equipment grant is fully recovered, but in no event will the date of full recovery extend beyond December 31, 2020.
    2. Beginning on January 1, 2021 and continuing throughout the remainder of the term of this Franchise, Grantee shall remit a PEG Fee to the City of 1% of Grantee’s Gross Revenues. 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 this Franchise.
    3. The PEG Fee may be used by City for PEG capital costs in accordance with Applicable Law.
    4. The PEG Fee is not part of the Franchise Fee and, so long as it is used for PEG capital costs, instead falls within one 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 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.
    5. Any PEG Fees 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 ten percent per annum.
14. PEG Technical Quality.
    1. Grantee will deliver the SD/HD PEG Access Channel to Subscribers so that it is viewable without degradation, provided that it is not required to deliver a PEG Access Channel at a resolution higher than the highest resolution used in connection with the delivery of local broadcast signals to the public. Grantee may implement SD/HD carriage of the PEG Access Channel in any manner (including selection of compression, utilization of IP, and other processing characteristics) that produces a signal as accessible, functional, useable and of a quality comparable (meaning indistinguishable to the viewer) to broadcast SD/HD channels carried on the Cable System.
    2. Within eight hours of a written or e-mailed request from City to the Grantee identifying a technical problem with a PEG Access Channel and requesting assistance, Grantee will provide technical assistance or diagnostic services to determine whether or 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.
    3. If changes in the technology used by the Grantee require additional equipment for reception of PEG Access Channels, the Grantee shall make such equipment available free of charge and at no cost to the City.
15. 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 PEG 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 PEG Access Channels in accordance with the requirements of the Franchise.
16. Regional Channel Six. Grantee shall make available Regional Channel Six as long as it is required to do so by Applicable Law.
17. 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.

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.
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. Any existing delegation in place at the time of the grant of this Franchise shall remain intact unless expressly modified by City.
3. Areas of Administrative Authority. In addition to any other regulatory authority granted to the City by law or franchise, the City or its designee, shall have administrative authority in the following areas:
   1. Administering and enforcing the provisions of this Franchise, including the adoption of administrative rules and regulations to carry out this responsibility.
   2. Coordinating the operation of PEG Access Channels.
   3. Formulating and recommending long-range cable communications policy for the Franchise Area.
   4. Disbursing and utilizing Franchise revenues paid to the City.
   5. Administering the regulation of rates, to the extent permitted by Applicable Law.
   6. 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.
4. Regulation of Rates and Charges.
   1. 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.
   2. 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 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.
   3. 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.

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 $25,000.00 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 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.
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
3. Reduction of Bond Amount. City may, in its sole discretion, reduce the amount of the bond.

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 that remain uncured, then 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 $20,000.00. In no event shall Grantee fail to post a $20,000.00 letter of credit within 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 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 $2,000 in that action.
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.
3. Restoration of Funds. Within ten days after notice to it that any amount has been withdrawn by the City from the security fund pursuant to Section 10.4 of this Franchise, Grantee shall deposit a sum of money sufficient to restore such security fund to the required amount.
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:
   1. 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 $100.00 per Day for each Day, or part thereof, such failure occurs or continues.
   2. 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 $150.00 per day for each day, or part thereof, such failure occurs or continues.
   3. For failure to test, analyze and report on the performance of the System following a request by City, the liquidated damage shall be $250.00 per day for each day, or part thereof, such failure occurs or continues.
   4. 30 days following notice from City of a failure of Grantee to comply with construction, operation or maintenance standards, the liquidated damage shall be $200.00 per day for each day, or part thereof, such failure occurs or continues.
   5. For failure to provide the services Grantee has proposed, including but not limited to the implementation and the utilization of the PEG Access Channels the liquidated damage shall be $150.00 per day for each day, or part thereof, such failure occurs or continues.
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.
6. Maximum 120 Days. Any liquidated damages for any given violation shall be imposed upon Grantee for a maximum of 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.
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 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.
8. Procedure for Draw on Security Fund.
   1. Whenever the City finds that Grantee has allegedly violated one 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 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 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.
   2. 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.
   3. 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.
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 30 days within which to perform provided Grantee commences corrective action within 15 days and thereafter uses reasonable diligence, as determined by the City, to correct the violation.
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.
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.
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.

1. Basis for Default. City shall give written notice of default to Grantee if City reasonably determines that Grantee has:
   1. 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 the violation of which prevents the Grantee from operating the Cable System in compliance with this Franchise;
   2. Attempted to evade any material provision of this Franchise or the acceptance hereof;
   3. Practiced any fraud or deceit upon City or Subscribers resulting in material harm;
   4. Made a material misrepresentation of fact in the application for or negotiation of this Franchise.
2. Default Procedure. If Grantee fails to cure such default within 30 days after the giving of such notice (or if such default is of such a character as to require more than 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:
   1. City shall provide Grantee with a written notice of the reason or cause for proposed termination and shall allow Grantee a minimum of 30 days subsequent to receipt of the notice in which to correct the default.
   2. Grantee shall be provided with an opportunity to be heard at a public hearing prior to any decision to terminate this Franchise.
   3. 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.
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. 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 this Franchise.
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.
5. Compliance with the Laws.
   1. If any federal or state law or regulation shall require or permit City or Grantee to perform any service or act or shall prohibit City or Grantee from performing any service or act which may be in conflict with the terms of this Franchise, then as soon as possible following knowledge thereof, either party shall notify the other of the point in conflict believed to exist between such law or regulation. Grantee and City shall conform to state laws and rules regarding cable communications not later than one year after they become effective, unless otherwise stated, and shall conform to federal laws and regulations regarding cable as they become effective.
   2. 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.

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.
2. Receivership. The City shall have the right to cancel this Franchise subject to any applicable provisions of state law, including the Bankruptcy Act, 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 120 days, or unless:
   1. Within 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,
   2. Such receiver or trustee, within said 120 days, shall have executed an agreement, duly approved by the Court having jurisdiction in the premises, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this Franchise.

1. Quarterly Reports. Within 45 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 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.
2. Reports. Upon request of the City and in no event later than 30 days from the date of receipt of such request, Grantee shall, free of charge, prepare and furnish to the City 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 and as such information may be maintained in the ordinary course of business. City shall agree to maintain the continuing confidentiality of such records as so designated by Grantee. Neither City nor Grantee shall unreasonably demand or withhold information requested pursuant with the terms of this Franchise.
3. Public Records.
   1. Grantee acknowledges that information submitted by Grantee to the City may be open to public inspection under the Minnesota Government Data Practices Act (MGDPA) pursuant to Minn. Stat. Chapter 13. Grantee is responsible for becoming familiar with and understanding the provisions of the MGDPA.
   2. Grantee may identify information submitted to the City as confidential, if Grantee reasonably believes such information is qualified for an exemption recognized under the MGDPA. Grantee shall prominently mark each page, or portion thereof, for which it is claiming confidentiality as “Confidential” prior to submitting such information to the City. When submitting such information to the City, Grantee shall submit documentation to the City that specifically identifies the applicable exemption under the MGDPA, and stating the reason(s) Grantee believes the information is exempt from public inspection. After reviewing the Grantee’s request for confidentiality, and determining whether the identified exemptions are applicable, the City shall take reasonable steps to protect the confidential nature of any such information, consistent with the MGDPA, including only disclosing such information to employees, representatives, and agents thereof that have a need to know or in order to enforce the provisions of this Franchise.
   3. Within five working days of receiving a public records request to inspect any such request, the City shall provide the Grantee with written notice of the request, including a copy of the request. Grantee shall have five working days within which to provide a written response to the City, before the City may disclose any of the requested, confidential information. If the City determines that it will be necessary to reveal the information, the City shall promptly notify the Grantee, and do so at least five working days prior to the information being released. The City shall retain final discretion to determine whether to release the requested information in response to any public records request, as recognized under the MGDPA.
4. Communications with Regulatory Agencies.
   1. Grantee shall submit to City copies of any communications to any federal, state or local courts, regulatory agencies and other government bodies if such documents are directly relate to the operation of Grantee’s Cable System or Grantee’s provision of Cable Services within the Franchise Area. Grantee shall submit such communications to the City no later than 30 days after such communications have been filed. Grantee shall not claim confidential, privileged or proprietary rights to such documents unless under Applicable Law such documents have been determined to be confidential by a court of competent jurisdiction, or a federal or State agency or as a request for confidential treatment is pending. 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.
   2. In addition, Grantee and its Affiliates shall within ten days of any communication to or from any judicial or regulatory agency regarding any alleged or actual violation of this Franchise, City regulation 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.
5. Open Records. Grantee shall manage all of its operations in accordance with a policy of keeping its records open and accessible to the City. The City, upon reasonable notice, shall have the right to inspect all records of the Grantee and affiliated entities necessary to determine compliance by Grantee with its obligations under this Franchise. Such inspection shall take place at any time during Normal Business Hours at a Grantee business operations site within the Twin Cities of Minnesota. Grantee shall not deny the City access to Grantee’s records on the basis that Grantee’s records are under the control of an affiliated entity or a third party, rather than the Grantee. In the case of affiliated entities not under common control with Grantee, Grantee shall not be subject to the remedies set forth in Section 11 if such Affiliate does not permit inspection of its records, and Grantee has;
   1. made available for inspection all of its records relevant to the determination of compliance; and
   2. exercised all reasonable efforts to persuade such affiliated entity to make such records available for inspection.
6. Information and Reports. Upon request, Grantee shall provide a current copy of the following information which is reasonably necessary to verify compliance with this Franchise:
   1. Cable System structure and operating information:
      1. Total Cable System mileage and overall homes passed;
      2. The number of Subscribers in the Franchise Area, including the number of Basic Cable Service Subscribers;
      3. The channel lineup for the Franchise Area;
      4. A schedule of all Grantee’s rates and charges in the Franchise Area;
      5. A monthly Cable Services sample customer bill within the Franchise Area; and
      6. A copy of Subscriber privacy policies and the Subscribers service agreements, including terms and conditions.

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.
2. Definition of “Complaint.” For the purposes of Section 14, with the exception of Subsection 14.4, a “complaint” shall mean any communication to Grantee or to the City by a Subscriber expressing dissatisfaction with any service, performance, or lack thereof, by Grantee under the obligations of this Franchise.
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:
   1. Services to be provided and rates for such services.
   2. Billing procedures.
   3. Service termination procedure.
   4. Change in service notifications.
   5. Liability specifications.
   6. Converter/Subscriber terminal equipment policy.
   7. Breach of Franchise specification.
   8. How complaints are handled including Grantee’s procedure for investigation and resolution of Subscriber complaints.
   9. 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. A copy of the written information shall be provided to each Subscriber at the time of initial Connection and any subsequent reconnection.
4. Reporting Complaints.
   1. The requirements of this Section 14.4 shall be subject to federal law regarding Subscriber privacy. Consistent with the way such information is maintained in the ordinary course of business, Grantee shall maintain customer service performance data available for City inspection. Subscriber data shall include the date, name, address, and 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.
   2. Subject to federal law and upon reasonable request by the City, Grantee shall, within a reasonable amount of time, make available City with such customer service data for its review.
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.
6. Cable System Telephone Availability.
   1. Grantee will maintain a local, toll-free or collect call telephone access line which will be available to its Subscribers 24 hours a day, seven days a week.
      1. Trained Grantee representatives will be available to respond to customer telephone inquiries during Normal Business Hours.
      2. 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.
   2. Under Normal Operating Conditions, telephone answer time by a customer representative, including wait time, shall not exceed 30 seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed 30 seconds. These standards shall be met no less than 90% of the time under Normal Operating Conditions, measured on a quarterly basis.
   3. 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.
   4. Under Normal Operating Conditions, the customer will receive a busy signal less than three percent (3%) of the time.
   5. Customer service center and bill payment locations will be open at least during Normal Business Hours and will be conveniently located.
7. Installations, Outages and Service Calls. Under Normal Operating Conditions, each of the following standards will be met no less than 95% of the time measured on a quarterly basis:
   1. Standard Installations will be performed within seven business days after an order has been placed. “Standard” Installations are those that are located up to 125 feet from the existing distribution system as more specifically set forth in Section 6.7(b).
   2. Excluding conditions beyond the control of Grantee, Grantee will begin working on “Service Interruptions” promptly and in no event later than 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.
   3. The “appointment window” alternatives for Installations, Service calls, and other Installation activities will be either a specific time or, at maximum, a four 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.)
   4. Grantee may not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment.
   5. 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.
8. Communications between Grantee and Subscribers.
   1. Refunds. Refund checks will be issued promptly, but no later than either:
      1. The customer’s next billing cycle following resolution of the request or thirty (30) Days, whichever is earlier, or
      2. The return of the equipment supplied by Grantee if Cable Service is terminated.
   2. 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.
9. Billing.
   1. 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.
   2. In case of a billing dispute, Grantee must respond to a written complaint from a Subscriber within 30 days.
10. Subscriber Information.
    1. 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:
       1. Products and Services offered;
       2. Prices and options for programming services and conditions of subscription to programming and other services;
       3. Installation and Service maintenance policies;
       4. Instructions on how to use the Cable Service;
       5. Channel positions of programming carried on the System; and
       6. Billing and complaint procedures, including the address and telephone number of the City’s cable office.
    2. 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 30 days in advance of any significant changes in the information required by this Section 14.10.
11. Notice or Rate Programming Change. In addition to the requirement of this Section 14.11 regarding advance notification to Subscribers of any changes in rates, programming services or Channel positions, Grantee shall give 30 days written notice to both Subscribers and the City before implementing any rate or Service change. 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.
12. 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.
13. Refund Policy. If a Subscriber’s Cable Service is interrupted or discontinued, without cause, for 24 or more consecutive hours, Grantee shall, upon request by the Subscriber, credit such Subscriber pro rata for such interruption. For this purpose, every month will be assumed to have 30 days.
14. Late Fees. Grantee shall comply with all Applicable 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.
15. 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.
16. Subscriber Bills. Subscriber bills shall be designed in such a way as to present the information contained therein clearly and comprehensibly to Subscribers, and in a way that (A) is not misleading and (B) does not omit material information. Notwithstanding anything to the contrary in Section 14.9, above, Grantee may, in its sole discretion, consolidate costs on Subscriber’s bills as may otherwise be permitted by Section 622(c) of the Cable Act (47 U.S.C. §542(c)).
17. Failure to Resolve Complaints. Grantee shall resolve a complaint within thirty (30) Days in a manner deemed reasonable by the City under the terms of the Franchise.
18. 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 Subscribers 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, Grantee shall state that complaints should be made to Grantee prior to contacting the City.
19. Subscriber Privacy.
    1. 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 one 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.
    2. 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 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.
    3. 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.
20. 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.

1. Subscriber Rates. 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) 45 days after the original due date of said delinquent fee or charge; or (ii) ten 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.
2. Refunds.
   1. Refunds to Subscribers shall be made or determined in the following manner:
      1. 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;
      2. 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;
      3. 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.

1. Franchise Fees.
   1. During the term of the Franchise, Grantee shall pay to the City a Franchise Fee of five percent of Gross Revenues. If any such law, regulation or valid rule alters the five percent Franchise Fee ceiling established 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.
   2. Franchise Fees shall be paid quarterly not later than 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.
   3. 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.
   4. Any Franchise Fees owing pursuant to this Franchise which remain unpaid more than 45 days after the dates specified herein shall be delinquent and shall thereafter accrue interest at twelve percent per annum or two percent above prime lending rate as quoted by the Wall Street Journal, whichever is greater.
2. Auditing and Financial Records. Throughout the term of this Franchise, the Grantee agrees that the City, upon reasonable prior written notice of 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. The production of such records shall be subject to the prior completion of a non-disclosure or other confidentiality agreement. Grantee shall provide such requested information as soon as possible and in no event more than 30 days 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 seven years, pursuant to Minn. Stat. § 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, Affiliate 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 30 days of the receipt of such request. One 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.
3. Review of Record Keeping Methodology. Upon request, Grantee agrees to meet with a representative of the City 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.
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 and each parent company of Grantee shall cooperate fully in the conduct of such audit. In the event it is determined through such audit that Grantee has underpaid Franchise Fees in an amount of five percent or more than was due the City, then Grantee shall reimburse the City for the entire cost of the audit within 30 days of the completion and acceptance of the audit by the City.
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.
6. Indemnification by Grantee. 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 or willful misconduct 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. The City shall give the Grantee written notice of its obligation to indemnify within ten business days of receipt of a claim or action pursuant to this subsection.
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 $3,000,000. The liability policy shall include:
   1. The policy shall provide coverage on an “occurrence” basis.
   2. The policy shall cover personal injury as well as bodily injury.
   3. 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.
   4. Broad form property damage liability shall be afforded.
   5. City shall be named as an additional insured on the policy.
   6. 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 City will be called upon to contribute to a loss under this coverage.
   7. Standard form of cross-liability shall be afforded.
   8. An endorsement stating that the policy shall not be canceled without 30 days’ notice of such cancellation given to City.
   9. City reserves the right to adjust the insurance limit coverage requirements of this Franchise no more than once every three 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 year period.
   10. 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.

1. Posting and Publication. This Franchise shall be published in accordance with Applicable Law. The Summary of Ordinance for Publication, attached hereto as Exhibit C, shall be published in the official newspaper of the City to clearly inform the public of the intent of the ordinance. 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.
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 ten year Franchise. Performance pursuant to the terms and conditions of this Franchise is guaranteed by Grantee.
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 the City Code and is intended to comply with all requirements set forth therein.
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.
5. Prior Franchise Terminated. The cable television franchise originally granted by Ordinance 1210 is hereby terminated.
6. Franchise Acceptance. No later than sixty 60 days following City Council approval of this Franchise, Grantee shall execute and return to the City three original franchise agreements. The executed agreements shall be returned to the City accompanied by performance bonds, security funds, and evidence of insurance, all as provided in this Franchise. In the event Grantee fails to accept this Franchise, or fails to provide the required documents, this Franchise may, upon Council action, be rescinded. 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.
7. Amendment of Franchise. Grantee and City may agree, from time to time, to amend this Franchise. Such written amendments may be made to address technology changes or advances subsequent to a review session pursuant to Section 2.6 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.
8. Franchise Renewal. Any renewal of this Franchise shall be in accordance with Applicable Laws. The term of any renewed Franchise shall be limited to a period not to exceed 15 years.
9. Notice.
   1. 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:
      
      To the City:
      
      City Manager or Designee
      7071 University Avenue
      Fridley, MN 55432
      
      To the Grantee:
      
      Comcast Regional Vice President of Operations
      10 River Park Place
      St. Paul, MN 55107
   2. Recognizing the widespread usage and acceptance of electronic forms of communication, emails and faxes 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.
10. Rights of Individuals.
    1. Grantee shall not deny service, deny access, or otherwise discriminate against Subscribers, Channel users, or general citizens on the basis of race, color, religion, disability, national origin, age, gender or sexual preference. Grantee shall comply at all times with all other Applicable Laws, relating to nondiscrimination.
    2. Grantee shall adhere to the applicable equal employment opportunity requirements of Applicable Laws, as now written or as amended from time to time including 47 U.S.C. Section 551, Protection of Subscriber Privacy.
11. Rights Reserved to City. In addition to any rights specifically reserved to the City by this Franchise, the City reserves to itself every right and power which is required to be reserved by a provision of this Franchise.
12. Severability. If any provision of this Franchise is held by any governmental authority of competent jurisdiction, to be invalid as conflicting with any Applicable Laws now or hereafter in effect, or is held by such governmental authority to be modified in any way in order to conform to the requirements of any such Applicable Laws, such provision shall be considered a separate, distinct, and independent part of this Franchise, and such holding shall not affect the validity and enforceability of all other provisions hereof. In the event that such Applicable Laws are subsequently repealed, rescinded, amended or otherwise changed, so that the provision hereof which had been held invalid or modified is no longer in conflict with such laws, said provision shall thereupon return to full force and effect and shall thereafter be binding on City and Grantee, provided that City shall give Grantee 30 days written notice of such change before requiring compliance with said provision or such longer period of time as may be reasonably required for Grantee to comply with such provision.
13. 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.
14. 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.
15. Abandonment of System. Grantee may not abandon the System or any portion thereof during the term of this Franchise, and thereafter without having first given three 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.
16. Removal After Abandonment. In the event of Grantee’s abandonment of the System, City shall have the right to require Grantee to conform to Section 405 of the City Code, as well as the state right-of-way rules, Minn. Rules, Chapter 7819. If Grantee has failed to commence removal of the aerial portion of the System, or such part thereof as was designated by City, within 30 days after written notice of City’s demand for removal consistent with Section 405 of the City Code and Minn. Rules, Ch. 7819, is given, or if Grantee has failed to complete such removal within 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. 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.
18. 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.
19. 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.
20. 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.
21. 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.
22. No Third-Party Beneficiaries. Nothing in this Franchise Agreement is intended to confer third-party beneficiary status on any member of the public to enforce the terms of this Franchise Agreement.
23. Competitive Equity.
    1. The Grantee acknowledges and agrees that the City reserves the right to grant one (1) or more additional franchises or other similar lawful authorization to utilize the Street in order to provide Cable Services or similar video programming service within the City in accordance with Applicable Law (hereinafter “Lawful Franchise”). If the City grants a Lawful Franchise containing material terms and conditions that differ from Grantee’s material obligations under this Franchise, or if the City declines to require a Lawful Franchise where it has the legal authority to do so, then the City agrees that the obligations in this Franchise will, pursuant to the process set forth in this section, be amended to include any material terms or conditions that are imposed upon the new entrant, or provide relief from existing material terms or conditions, so as to insure that the regulatory and financial burdens on each entity are no more favorable or less burdensome. “Material terms and conditions” include, but are not limited to: Franchise Fees and Gross Revenues; complementary services; insurance; System build-out requirements consistent with Applicable Law; security instruments; PEG Access Channels and PEG Fees; customer service standards; required reports and related record keeping; audits; dispute resolution; remedies; and notice and opportunity to cure breaches. The parties agree that this provision shall not require a word for word identical franchise or authorization for a competitive entity so long as the regulatory and financial burdens on each entity are no more favorable or less burdensome.
    2. The modification process of this Franchise as provided for in Section 17.23(a) shall only be initiated by written notice by the Grantee to the City regarding specified franchise obligations. Grantee’s notice shall address the following: (1) identifying the specific terms or conditions in the competitive Lawful Franchise that are materially different from Grantee’s obligations under this Franchise; (2) identifying the Franchise terms and conditions for which Grantee is seeking amendments; (3) providing text for any proposed Franchise amendments to the City, with a written explanation of why the proposed amendments are necessary and consistent. Notwithstanding any modification of this Franchise pursuant to the provisions of this Section 17.23(a), should any entity whose Lawful Franchise triggered the amendments under this section cease to provide such services within the City, the City may provide 90 days written notice to Grantee of such fact, and the City and Grantee shall enter into good faith negotiations to determine which of the original terms, conditions and obligations of this Franchise shall be reinstated and fully effective. It is the intent of the parties that the original terms, conditions and obligations of this Franchise shall be reinstated in the absence of a competitive entity.
    3. Upon receipt of Grantee’s written notice as provided in Section 17.23(b), the City and Grantee agree that they will use best efforts in good faith to negotiate Grantee’s proposed Franchise modifications, and that such negotiation will proceed and conclude within a 120 day time period, unless that time period is reduced or extended by mutual agreement of the parties. If the City and Grantee reach agreement on the Franchise modifications pursuant to such negotiations, then the City shall amend this Franchise to include the modifications.
    4. In the alternative to Franchise modification negotiations as provided for in Section 17.23(a), or if the City and Grantee fail to reach agreement in negotiations as provided for in Section 17.23(c), Grantee may, at its option, elect to replace this Franchise by opting into the Lawful Franchise, with the understanding that Grantee may use its current system design and technology infrastructure to meet any requirements of the Lawful Franchise, so as to ensure that the regulatory and financial burdens on each entity are no more favorable or less burdensome. If Grantee so elects, the City shall immediately commence proceedings to replace this Franchise with the Lawful Franchise.
    5. Notwithstanding anything contained in this Section 17.23(a) through (d) to the contrary, the City shall not be obligated to amend or replace this Franchise unless the new entrant makes Cable Services or similar video programming services available for purchase by Subscribers or customers under its franchise agreement with the City.

1. Short Title. This Chapter shall be known and may be cited as the "Fridley Cable Communications Rate Chapter."
2. Definitions. Words used herein shall be defined in accordance with the provisions of Section 405.03 of the City of Fridley Cable Communications Franchise Chapter.
3. Regulation of Rates; Effective Date.
   1. No charge shall be made or imposed by the Grantee for any cable communications service subject to regulations by the City, except in accordance with the provisions of this Chapter and the provisions of the City of Fridley Cable Communications Franchise Chapter.
   2. This Chapter shall be in effect, after passage and publication, as of the date the City of Fridley Cable Communications Franchise Chapter becomes effective; and shall remain in effect until amended or superseded in accordance with the provisions set forth herein.
4. Captions. Section captions or headings are intended solely to facilitate reading and reference to the provisions of this Franchise Chapter and shall not affect the meaning or interpretation of any provision.
5. Severability. If any section subsection sentences, clause, phrase or portion of this Rate Chapter is, for any reason, held invalid or unconstitutional by any court or administrative agency of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof.

1. Rates and Other Charges.
   1. Rates and charges charged by Grantee for monthly service and installation and other charges hereunder shall be uniform, fair and reasonable.
   2. The initial rate for basic service shall not exceed the following:
      
      

      Basic Service (35 Channels)
      First TV outlet-monthly charge	$10.00
      Installation	$25.00
      Additional outlets with identical service, each-monthly charge	$3.00
      Installation	$10.00

   3. The initial rates for premium services shall be as follows:
      
      

      Premium Services
      Premium Service/each	$10.00
      Additional outlets with identical service, each-monthly charge	$3.50
      Installation (service addition)	$10.00 (maximum)

      Service in the City shall consist of basic service plus one (1) or more premium services as selected by subscriber.
      
      At the present time, the federal government does not allow the City to regulate the rates for premium services. In the event that this policy is changed, Grantee's provision of premium services shall be subject to the City's rate regulation authority. In any event, no rate change for any premium service shall be effective unless Grantee gives at least thirty (30) days advance notice of the increase to all subscribers and Grantor.
      1. The other initial rates shall be as follows:
         
         

         Other Rates
         Reconnection	$15.00
         Converter rental (for a video cassette recorder)	$2.50
         Government and educational facilities (monthly basic service only)	No Charge
         Senior citizen discount (available to those 65 or older who are head of households)	25% on Basic Service
         Lock-out boxes (one time only purchase)	$35.00

      2. Grantee reserves the right to collect a refundable deposit on any and all converters.
   4. Notwithstanding the previous paragraph, Grantee may offer both its initial and additional installation services to subscriber at uniformly applied reduced rates.
   5. Leased access channels shall be made available on a first come, first served basis. Grantee shall make available both playback equipment and cablecasting technicians needed for the playback of programs. Rates for studio usage will be determined on a case-by-case basis and will be established by considering such factors as personnel requirements, hours of studio time required, staging, prop and equipment requirements. In any event, leased access channels shall be made equitably available to all at uniformly applied rates.
   6. Service requests for maintenance or repair of the System shall be performed at no charge to a subscriber. Grantee reserves the right to assess an appropriate charge for damage to System caused by a subscriber. The cost of time and material for repair and replacement shall constitute appropriate charges.

1. Line Extensions.
   1. Installation charges as set forth in Section 406.02.1 of this Chapter shall apply in all areas where density is forty (40) homes per mile or higher.
   2. Grantee will extend service, upon request,, to areas where densities are lower than forty (40) homes per mile at the following additional cost per installation:
      
      

      Density Per Mile	Additional Cost Per Installation
      30 - 39	$30.00
      20 - 29	$50.00

   3. Areas where there are nineteen (19) or less homes per mile will be served on a cost-sharing basis between the System and the subscribers on a graduated basis as follows:
      
      

      Density Per Mile	Percentage of Cost
      	Cost Paid by Grantee	Cost Paid By Subscriber
      15 19	50%	50%
      10-14	30%	70%
      9 or fewer	0%	Time and materials

   4. There will be no free installation period in these areas.

1. Rate Changes. A change in any regulatable rate as set forth in Section 406.02.1B and 406.02.1D, when not inconsistent with applicable requirements of the FCC, the Board, or other lawful authority, may be initiated by Grantee. Any such rate change shall be subject to approval by the City in accordance with the provisions of this Section and the following paragraphs:
   1. No rate change may be made without approval of four (4) affirmative votes of the City Council of the City.
   2. No rate change shall be approved that would result in different rates or charges for service to similarly situated subscribers in the rate territory.
   3. No rate or charge change will be approved unless all of the standards and prerequisites for review have been met and complied with and determinations have been made, all pursuant to this Section.
   4. The standards for reviewing a proposed rate change will include at least the following, except when the change is required of Grantee by federal or state action or unless further review is not deemed necessary by the City.
      1. The ability of Grantee to render System services and to derive a reasonable profit therefrom under the existing rate schedule and proposed rate schedule;
      2. A fair rate of return on net investments;
      3. A fair rate of return with respect to investments having similar risks to that of providing cable communications services;
      4. The extent to which Grantee has adhered to the terms of this Franchise and the cost of adhering thereto;
      5. Capital expenditures made by Grantee;
      6. Grantee's adherence to the terms of the Franchise with respect to community programming requirements;
      7. In any proceeding, the City may consider the extent to which payment or compensation is reasonably made to parent or an affiliated interest for any services rendered or property or service furnished. in such proceedings, any payment made by Grantee to parent based upon allocations of corporate resources in accordance with FCC Form 326 shall be deemed reasonable. Grantee shall provide FCC Form 326 notwithstanding federal requirements. Other payments shall be justified by Grantee with an itemized statement. If Grantee fails to justify other payments, the City may disallow those payments in whole or in part if the City finds that said payments did not reasonably relate to the service rendered or property furnished by the parent or affiliate;
      8. Such other factors as the City may deem relevant.
   5. The procedures to be followed in changing a rate or charge shall include at least the following:
      1. An application for a rate change will be submitted to the City and a copy filed with the Board.
      2. The application shall be supported by statistical and other proof indicating that the existing rate or charge is inadequate and that the proposed increases are required to enable the Grantee to render service to fulfill its obligations under this Franchise and to derive a reasonable profit therefrom.
      3. The application shall include, upon request of the City, current information and financial information with at least the following:
         1. Balance sheet;
         2. Income statement;
         3. Statement of sources and applications of funds;
         4. Detailed supporting schedules of expenses income, assets and other items as may be required by the City;
         5. Statement of current and projected subscribers;
         6. A current list of rates and charges of Grantee applicable to its Systems, or owned or operated by its parent corporation or other subsidiaries or affiliates of its parent corporation;
         7. A current list of rates and charges f or other systems in the seven (7) county metropolitan area.
      4. The application shall include, upon request of the City, explanatory material detailing the methods for determining debt and equity portions of the balance sheet; the basis for interest expense; depreciation methods; the methods for any corporate overhead allocations; and the basis for taxes, including any investment tax credits.
      5. The City will notify the Grantee and the Board and schedule a public hearing on the request not less than twenty (20) days nor more than forty (40) days from the date of receipt of the application, if the application contains all information requested pursuant to Sections 406.04.1E(3) and (4). Grantee will notify the public through providing notice for one (1) week, each day between 7:00 p.m. and 9:00 p.m. on two (2) channels of the day, place and time of the hearings. The City will publish notice not less than twenty (20) days prior to hearing in its official newspaper.
      6. After closing the public hearing, the City will have sixty (60) days within which to make its determination. Any approved change in rates or charges shall become effective upon the date the rate change is granted by the City.
      7. If the City fails to act upon the requested change of rates or charges within the sixty (60) day period, the requested change of rates or charges shall become effective. The City may appeal pursuant to the then applicable procedures of the Board.
   6. The City may utilize a rate consultant to advise it on proposed rate changes and to assist in maintaining uniform rates within the rate territory. The expenses of a rate consultant shall be borne by the Grantee if:
      1. The proposed increase would result in a rate thirty percent (30%) higher than the median rate for service defined as basic service for the seven (7) county metropolitan area; and
      2. The City and Grantee mutually agree upon the rate consultant to be retained. Consent shall not be unreasonably withheld by either party.
         
      In all other events, the expense of a rate consultant shall be borne by the City.
   7. Except as provided below, the City shall bear all costs for review of an application for a rate or charge change. In the event the proposed rate or charge change will result in a rate or charge thirty percent (30%) higher than the median rate for that service defined as basic service in the seven (7) county metropolitan area, all expenses incurred by the City in reviewing and processing the application shall be borne by Grantee. The cost shall include, but not be limited to, attorneys' fees and the reasonable value of service (as determined by the City) rendered by, the City or any of the City's employees, agents or representatives. The City shall notify Grantee of any consultants, other than rate consultants, to be employed, the purpose of such employment and the anticipated costs. Nothing herein shall preclude either party from recovering its expenses through litigation of a contested rate change proceeding.
   8. The City shall have the power and right to submit to arbitration the fixing of any rates or charges to be made by Grantee.
   9. Any time limit may be waived only if the City and Grantee consent.

1. To provide for the health, safety and well-being of its citizens, and to ensure the structural integrity of its streets and the appropriate use of the public rights-of-way, the City strives to keep its public rights-of-way in a state of good repair and free from unnecessary encumbrances. Although the general population bears the financial burden for the upkeep of the public rights-of-way, a primary cause for the early and excessive deterioration of its public rights-of-way is frequent excavation by persons whose equipment or facilities are located therein.
   
   Public right-of-way obstruction is a source of frustration for merchants, business owners and the general population which must avoid these obstructions or change travel or shopping plans because of them and has a detrimental effect on commerce. Persons whose equipment or facilities is located within the public right-of-way are the primary cause of these frequent obstructions.
   
   The City holds the public rights-of-way within its geographical boundaries as an asset in trust for its citizens. The City and other public entities have invested millions of dollars in public funds to build and maintain the public rights-of-way. It also recognizes that some persons, by placing their equipment or facilities in the public right-of-way and charging the citizens of the City for goods and services delivered thereby, are using this property held for the public good. Although such services are often necessary or convenient for the citizens, such persons receive revenue and/or profit through their use of public property.
   
   As a result of all these intrusions in the public right-of-way, it is appropriate for the City to establish a system of documenting what is placed in the public rights-of-way within its municipal boundaries to inform its citizens and the other public entities of the equipment or facilities that have been placed in the right-of-way that is held in trust for them.
2. In response to the foregoing facts, the City hereby enacts this Chapter of the City Code relating to right-of-way permits and administration. This Chapter imposes reasonable regulations on the placement and maintenance of facilities and equipment currently within the City’s public rights-of-way or to be placed therein at some future time. It is intended to complement the regulatory roles of state and federal agencies. Under this Chapter, persons disturbing and obstructing the public rights-of-way will bear the financial responsibility for their work. Finally, this Chapter provides for recovery of out-of-pocket and projected costs from persons using the public rights-of-way.
   
   This Chapter shall be interpreted consistently with Minnesota Statutes, Sections 237.16, 237.162, 237.163, 237.79, 237.81 and 238.086 and the other laws governing applicable rights of the City and users of the right-of-way. This Chapter shall also be interpreted consistently with Minnesota Rules, Chapter 7819 where possible. To the extent any provision of this Chapter cannot be interpreted consistently with the Minnesota Rules, that interpretation most consistent with the Act and other applicable statutory and case law is intended.
3. In addition to the foregoing recovery of costs and regulation of use, the City Council determines that there is an existing and legitimate state and local public policy, which authorizes the City to require payments as reimbursement or return to the public for the use value of the public rights-of-way from those who obtain revenue or profits from such use. This reimbursement is provided for and defined in this ordinance as the “user fee.” This fee does not apply to the repair, replacement or reconstruction of an existing facility. Telecommunication facilities are exempt from a user fee by state statute.
   1. Public Interest and Welfare. The City Council finds that it is in the public interest to provide for the payment of a user fee by all persons who use and occupy the right-of-way for operating their businesses. This provides equity by requiring all users of the public right-of-way to pay compensation apportioned equally among them all for the value and benefit of using such public right-of-way. To ensure such fair treatment, this Chapter exempts franchise holders which pay franchise fees to the City on the date of adoption of this Chapter from the payment of a user fee.
   2. Not a Rate. The City Council finds and determines that the user fee authorized by this Chapter is not and is not intended to be a rate as that term is defined in Minnesota Statutes, Section 216B.02, Subd. 5. Such user fee is not a fee for a service that is provided to the customer of a person using the public right-of-way, but is rather a fee paid for the right of that person to operate in the public right-of-way, and to maintain the equipment in the public right-of-way in the City of Fridley.
4. Pursuant to the authority granted to the City under state and federal statutory, administrative and common law, the City hereby elects to manage rights of way within its jurisdiction.

The following definitions apply in this Chapter of this Code. References hereafter to “sections” are, unless otherwise specified, references to sections in this Chapter. Defined terms remain defined terms whether or not capitalized.

1. “Abandoned facility” means a facility no longer in service or physically disconnected from a portion of the operating facility, or from any other facility, that is in use or still carries service. A facility is not abandoned unless declared so by the Right-of-Way User.
2. “Applicant” means any Person requesting permission to excavate or obstruct a Right-of-Way.
3. “City” means the City of Fridley, Minnesota. For purposes of section 407.27, City means its elected officials, officers, employees and agents.
4. “Collocate” or “Collocation” means to install, mount, maintain, modify, operate, or replace a small wireless facility on, under, within, or adjacent to an existing wireless support structure or utility pole that is owned privately, or by the City or other governmental unit.
5. “Commission” means the State of Minnesota Public Utilities Commission.
6. “Congested Right-of-Way” means a crowded condition in the subsurface of the public right-of-way that occurs when the maximum lateral spacing between existing underground facilities does not allow for construction of new underground facilities without using hand digging to expose the existing lateral facilities in conformance with Minnesota Statutes, Section 216D.04, Subd. 3, over a continuous length in excess of 500 feet.
7. “Construction Performance Bond” means any of the following forms of security provided at permittees option:
   1. Individual project bond
   2. Cash deposit
   3. Security of a form listed or approved under Minnesota Statutes, Section 15.73, Subd. 3
   4. Letter of Credit, in a form acceptable to the City
   5. Self-insurance, in a form acceptable to the City
   6. A blanket bond for projects within the City, or other form of construction bond, for a time specified and in a form acceptable to the City.
8. “Degradation” means a decrease in the useful life of the Right-of-Way caused by excavation in or disturbance of the Right-of-Way, resulting in the need to reconstruct such Right-of-Way earlier than would be required if the excavation did not occur.
9. “Degradation Cost” means the cost to achieve a level of restoration as determined by the City at the time the permit is issued, not to exceed the maximum restoration shown in plates 1 to 13, set forth in Minnesota Rules, Parts 7819.9900 to 7819.9950.
10. “Degradation Fee” means the estimated fee established at the time of permitting by the City to recover costs associated with the decrease in the useful life of the Right-of-Way caused by the excavation, and which equals the Degradation Costs.
11. “Department” means the Department of Public Works of the City.
12. “Director” means the Director of the Department of Public Works of the City, or the Director’s designee.
13. “Delay Penalty” is the penalty imposed as a result of unreasonable delays in right-of-way excavation, obstruction, patching, or restoration as establish by permit.
14. “Emergency” means a condition that (1) poses a clear and immediate danger to life or health, or of a significant loss of property; or (2) requires immediate repair or replacement of Facilities in order to restore service to a customer.
15. “Equipment” means any tangible asset used to install, repair, or maintain Facilities in any Right-of-Way.
16. “Excavate or excavation” means to dig into or in any way remove or physically disturb or penetrate any part of a right-of-way.
17. “Excavation Permit” means the permit which, pursuant to this Chapter, must be obtained before a Person may excavate in a Right-of-Way. An Excavation Permit allows the holder to excavate that part of the Right-of-Way described in such permit.
18. “Excavation Permit Fee” means money paid to the City by an Applicant to cover the costs as provided in Chapter 11 of this Code.
19. “Facility or Facilities” means any tangible asset in the Right-of-Way required to provide Utility Service.
20. “Five-year project plan” is a plan showing projects adopted by the City for construction within the next five years.
21. “High density corridor” means a designated portion of the public right-of-way within which telecommunications right-of-way users having multiple and competing facilities may be required to build and install facilities in a common conduit system or other common structure.
22. “Hole” means an excavation in the pavement, with the excavation having a length less than the width of the pavement.
23. “Local Representative” means a local person or persons, or designee of such Person or Persons, authorized by a Registrant to accept Service and to make decisions for that Registrant regarding all matters within the scope of this Chapter.
24. “Management Costs” means the actual costs the City incurs in managing its Rights-of-Way, including such costs, if incurred, as those associated with registering Applicants; issuing, processing, and verifying Right-of-Way permit applications and inspecting job sites and restoration projects; maintaining, supporting, protecting, or moving user facilities during right-of-way work; determining the adequacy of right-of-way restoration; restoring work inadequately performed after providing notice and the opportunity to correct the work; and revoking right-of-way permits. Management costs do not include payment by a Telecommunications Right-of-way User for the use of the right-of-way, the fees and cost of litigation relating to the interpretation of Minnesota Session Laws 1997, Chapter 123; Minnesota Statutes Sections 237.162 or 237.163 or any ordinance enacted under those sections, or the City fees and costs related to appeals taken pursuant to Section 407.29 of this Chapter.
25. “Obstruct” to place any tangible object in a Right-of-Way so as to hinder free and open passage over that or any part of the Right-of-Way for a period in excess of 4 consecutive daylight hours.
26. “Obstruction Permit” means the permit which, pursuant to this Chapter, must be obtained before a Person may obstruct a Right-of-Way, allowing the holder to hinder free and open passage over the specified portion of that Right-of-Way for a period over 4 daylight hours by placing Equipment described therein on the Right-of-Way for the duration specified therein.
27. “Obstruction Permit Fee” means money paid to the City by a Permittee to cover the costs as provided in Chapter 11 of this Code.
28. “Patch or Patching” means a method of pavement replacement that is temporary in nature. A Patch consists of (1) the compaction of the subbase and aggregate base, and (2) the replacement, in kind, of the existing pavement for a minimum of two feet beyond the edges of the excavation in all directions. A Patch is considered full Restoration only when the pavement is included in the City’s five-year project plan.
29. “Pavement” means any type of improved surface that is within the public right-of-way and that is paved or otherwise constructed with asphalt, concrete, aggregate or gravel.
30. “Permit” Has the meaning given “right of way permit” in Minnesota Statutes, Section 237.162.
31. “Permittee” means any Person to whom a permit to Excavate or Obstruct a Right-of-Way has been granted by the City under this Chapter.
32. “Person” means an individual or entity subject to the laws and rules of this state, however organized, whether public or private, whether domestic or foreign, whether for profit or nonprofit, and whether natural, corporate or political.
33. “Probation” means the status of a Person that has not complied with the conditions of this Chapter.
34. “Probationary Period” means one year from the date that a Person has been notified in writing that they have been put on Probation.
35. “Repair” means the temporary construction work necessary to make the Right-of-Way useable for travel.
36. “Registrant” means any Person who (1) has or seeks to have its Equipment or Facilities located in any Right-of-Way, or (2) in any way occupies or uses, or seeks to occupy or use, the Right-of-Way or place its Equipment or Facilities in the Right-of-Way.
37. “Registration fee” means money paid to the City by a Registrant to cover the cost associated with registration.
38. “Restore or Restoration” means the process by which an excavated Right-of-Way and surrounding area, including pavement and foundation is returned to the same condition and life expectancy that existed before excavation.
39. “Restoration Cost” means the amount of money paid to the City by a Permittee to achieve the level of restoration according to plates 1 to 13 to Minnesota Rules, Chapter 7819.
40. “Right-of-Way or Public Right-of-Way” means the area on, below, or above a public roadway, highway, street, cartway, bicycle lane and public sidewalk in which the City, county or State has an interest, including other dedicated rights-of-way for travel purposes and utility easements of the City, county or State. A Right-of-Way does not include the airwaves above a Right-of-Way with regard to cellular or other nonwire telecommunications or broadcast service.
41. “Right-of-Way Permit” means the Excavation Permit, the Obstruction Permit, and/or the Small Wireless Facility Permit, depending on the context, required by this Chapter.
42. “Right-of-way User” means (1) a telecommunications right-of-way user as defined by Minnesota Statutes, Section 237.162, subd. 4; or (2) a person owning or controlling a facility in the right-of-way that is used or intended to be used for providing utility service, and who has a right under law, franchise, or ordinance to use the public right-of-way.
43. “Service” or “Utility Service” includes but is not limited to (1) those services provided by a public utility as defined in Minnesota Statutes, Section 216B.02, subds. 4 and 6; (2) services of a telecommunications right-of-way user, including transporting of voice or data information; (3) services of a cable communications systems as defined in Minnesota Statutes, Chapter 238; (4) natural gas or electric energy or telecommunications services provided by the City; (5) services provided by a cooperative electric association organized under Minnesota Statutes, Chapter 308A; and (6) water, sanitary sewer, and storm water, including service laterals, steam, cooling, or heating services.
44. “Service Lateral” means an underground facility that is used to transmit, distribute or furnish Utility Service from a common source to an end-use customer or premises.
45. “Small Wireless Facility” means a wireless facility that meets both of the following qualifications:
    1. Each antenna is located inside an enclosure of no more than six cubic feet in volume or could fit within such an enclosure; and
    2. All other wireless equipment associated with the small wireless facility provided such equipment is, in aggregate, no more than 28 cubic feet in volume, not including electric meters, concealment elements, telecommunications demarcation boxes, battery backup power systems, grounding equipment, power transfer switches, cutoff switches, cable, conduit, vertical cable runs for the connection of power and other services, and any equipment concealed from public view within or behind an existing structure or concealment.
46. “Supplementary Application” means an application made to permit impacts to more of the Right-of-Way than permitted, or to extend the duration of a permit that had already been issued.
47. “Telecommunication Rights-of-Way User” means a Person owning or controlling a Facility in the Right-of-Way, or seeking to own or control a Facility in the Right-of-Way that is used or is intended to be used for transporting telecommunication or other voice or data information. For purposes of this Chapter, a cable communication system defined and regulated under Minnesota Statutes, Chapter 238, and telecommunication activities related to providing natural gas or electric energy services whether provided by a public utility as defined in Minnesota Statutes, Section 216B.02 a municipality, a municipal gas or power agency organized under Minnesota Statutes, Chapters 453 and 453A, or a cooperative electric association organized under Minnesota Statutes, Chapter 308A, are not Telecommunications Right-of-Way Users for purposes of this Chapter except to the extent such entity is offering wireless service.
48. “Temporary surface” means the compaction of subbase and aggregate base and replacement, in kind, of the existing pavement only to the edges of the excavation. It is temporary in nature except when the replacement is of pavement included in the City’s two-year project plan, in which case it is considered full restoration.
49. “Toll” means to stop the running of relevant the time period, such as a review period.
50. “Trench” means an excavation in the pavement, with the excavation having a length equal to or greater than the width of the pavement.
51. “Two-year project plan” shows projects adopted by the City for construction within the next two years.
52. “Unusable or Unused Equipment and Facilities” means Equipment and Facilities in the Right-of-Way which have remained unused for one year and/or for facilities that are not registered or located by Gopher One Call or for which the Registrant is unable to provide proof that it has either a plan to begin using it within the next twelve (12) months or a potential purchaser or user of the Equipment or Facilities.
53. “User Fee” is the sum of money, payable to the City, by a person who is neither furnishing utility services nor a telecommunications right of way user using or occupying the Right-of-Way; provided, however, that the City may at its option provide, at any time by ordinance or by amendment thereto, for a greater or different fee applicable to all such persons in an amount and by a method of determination as may be further provided in such ordinance or amendment thereto.
54. “Wireless Facility” means equipment at a fixed location that enables the provision of wireless services between user equipment and a wireless service network, including equipment associated with wireless service, a radio transceiver, antenna, coaxial or fiber-optic cable, regular and backup power supplies, and a small wireless facility, but not including wireless support structures, wireline backhaul facilities, or cables between utility poles or wireless support structures, or not otherwise immediately adjacent to and directly associated with a specific antenna.
55. “Wireless Service” means any service using licensed or unlicensed wireless spectrum, including the use of Wi-Fi, whether at a fixed location or by means of a mobile device, that is provided using wireless facilities. Wireless service does not include services regulated under Title VI of the Communications Act of 1934, as amended, including cable service.
56. “Wireless Support Structure” means a new or existing structure in a right-of-way designed to support or capable of supporting small wireless facilities, as reasonably determined by the City.

1. Responsibility. The Director is the principal City official responsible for the administration of the Rights-of-Way, Right-of-Way Permits, and the ordinances related thereto. The Director may delegate any or all of the duties hereunder.
2. Franchise Supremacy. The City may, in addition to the requirements of this Chapter, require any person which has or seeks to have equipment located in any Right-of-Way to obtain a franchise to the full extent permitted by law now or hereinafter enacted. The terms of any franchise which are in direct conflict with any provision of this Chapter whether granted prior or subsequent to enactment of this Chapter, shall control and supersede the conflicting terms of this Chapter. All other terms of this Chapter shall be fully applicable to all Persons whether franchised or not.

1. Registration. Each person who occupies, uses, or seeks to occupy or use, the public Right-of-Way or place any Equipment or Facilities in the Right-of-Way, including Persons with installation and maintenance responsibilities by lease, sublease or assignment, must register with the City. Registration will consist of providing application information and paying a registration fee.
2. Registration Prior to Work. No Person may construct, install, repair, remove, relocate, or perform any other work on, or use any Equipment or Facility or any part thereof in any Right-of-Way without first being registered with the City.
3. Exceptions.
   1. Ground Cover Plantings and Gardens. Nothing herein shall be construed to repeal or amend the provisions of a City ordinance permitting Persons to plant or maintain boulevard ground cover plantings or gardens in the area of the Right-of-Way between their property and the street curb. Persons planting or maintaining boulevard ground cover plantings or gardens shall not be deemed to use or occupy the Right-of-Way, and shall not be required to obtain any permits for planting or maintaining such boulevard ground cover plantings or gardens under this Chapter. Planting or maintenance of trees, shrubs, and installation or maintenance of structural landscaping, signs, poles, fences, and any other visual or physical obstructions are subject to the provisions of this Chapter at the discretion of the Director.
   2. City Utility Service Repair. The Director may exempt some or all permit requirements and permit fees for Excavations and Obstructions for repairs of City utility service laterals, including water, sanitary sewer, and storm sewer if a utility permit is issued in conjunction with the work and registration and mapping information is provided by the Person or contractor associated with the repair consistent with this Chapter.
   3. Gopher State One Call Law. In addition, nothing herein relieves a Person from complying with the provisions of the Minnesota Statutes, Chapter 216D, known informally as the “Gopher State One Call” law.

1. Information Required. The information provided to the City at the time of registration shall include, but not be limited to:
   1. Each Registrant’s name, Gopher One-Call registration certificate number, address and email address if applicable, and telephone and facsimile numbers.
   2. The name, address and E-mail address, if applicable, and telephone and facsimile numbers of a Local Representative. The Local Representative or designee shall be available at all times. Current information regarding how to contact the Local Representative in an Emergency shall be provided at the time of registration.
   3. A certificate of insurance or self-insurance acceptable by the City:
      1. Verify that an insurance policy has been issued to the Registrant by an insurance company licensed to do business in the State of Minnesota, or a form of self-insurance acceptable to the City;
      2. Verifying that the Registrant is insured against claims for Personal injury, including death, as well as claims for property damage arising out of the (i) use and occupancy of the Right-of-Way by the Registrant, its officers, agents, employees and Permittees, and (ii) placement and use of Facilities in the Right-of-Way by the Registrant, its officers, agents, employees and Permittees, including, but not limited to, protection against liability arising from completed operations, damage of underground Facilities and collapse of property;
      3. Naming the City as an additional insured as to whom the coverages required herein are in force and applicable and for whom defense will be provided as to all such coverages;
      4. Requiring that the City be notified thirty (30) days in advance of cancellation of the policy or material modification of a coverage term;
      5. Indicating comprehensive liability coverage, automobile liability coverage, workers compensation and umbrella coverage established by the City in amounts sufficient to protect the City and the public and to carry out the purposes and policies of this Chapter.
         1. The City may require a copy of the actual insurance policies.
         2. If the Person is a corporation, a copy of the certificate required to be filed under Minnesota Statutes, Section 300.06 as recorded and certified to by the Secretary of State.
         3. A copy of the Person’s order granting a certificate of authority from the Minnesota Public Utilities Commission or other applicable state or federal agency, where the Person is lawfully required to have such certificate from said Commission or other state or federal agency.
2. Notice of Changes. The Registrant shall keep all of the information listed above current at all times by providing to the City information as to changes within fifteen (15) days following the date on which the Registrant has knowledge of any change.
3. Grant of Right; Payment of User Fee. Any person required to register under Section 407.04, which occupies, uses, or places its equipment in the public right-of-way but who is not a telecommunications right of way user or a right of way user as defined by this Chapter and Minnesota Statutes Chapter 237, is hereby granted a right to do so if and only so long as it (1) timely pays the user fee as provided herein, and (2) complies with all other requirements of law. This legal entitlement shall not include use of the right-of-way for purposes in furtherance of furnishing utility services for which additional authorization is required by this Code or other state or federal law, unless the person pays the user fee for such non-utility service use.
   
   The user fee reflects the value of the right-of-way needed for new facilities and is based on the average market value of the land, adjusting for the cost of acquisition and non-exclusive use. The dimensions of the occupied land shall incorporate the Gopher One Call criteria of 2-foot clearance on all sides. Such fee shall be paid to the City in substantially equal (quarterly, semi-annual, annual) installments, subject to adjustment and correction at the conclusion of the calendar year. Such fee shall be paid for all and any part of a calendar year, prorated on a daily basis, during any time period in which the said person uses or occupies the right-of-way to furnish utility serviced, or places, maintains or uses its wires, mains, pipes, or any other facilities or equipment in the right-of-way.
   
   This section does not apply to a person who uses and occupies the right-of-way for operating their business when there is a pre-existing franchise agreement between that person and the City and the payment of a franchise fees, nor does it apply to the repair, replacement or reconstruction of an existing facility.
   
   The grant of such right is expressly conditioned on, and is subject to, continuing compliance with all provisions of law, including this Chapter.

1. Operations. Each Registrant proposing to work in the City shall, at the time of registration and by December 1 of each year, file a construction and major maintenance plan for underground Facilities with the City. Such plan shall be submitted using a format designated by the City and shall contain the information determined by the City to be necessary to facilitate the coordination and reduction in the frequency of Excavations and Obstructions of Rights-of-Way.
   
   The plan shall include, but not be limited to, the following information:
   1. The locations and the estimated beginning and ending dates of all Projects to be commenced during the next calendar year (in this section, a “Next-year Project”); and
   2. To the extent known, the tentative locations and estimated beginning and ending dates for all Projects contemplated for the five years following the next calendar year (in this section, a “Five-year Project”).
      
   The term “project” in this section shall include both Next-year Projects and Five-year Projects.
   
   By January 1 of each year the City will have available for inspection a composite list of all Projects of which the City has been informed in the annual plans. All Registrants are responsible for keeping themselves informed of the current status of this list.
   
   Thereafter, by February 1, each Registrant may change any Project in its list of Next-year Projects, and must notify the City and all other Registrants of all such changes in said list. Notwithstanding the foregoing, a Registrant may at any time join in a Next-year Project of another Registrant listed by the other Registrant.
2. Additional Next-year Projects. Notwithstanding the foregoing, the City will not deny an application for a Right-of-Way Permit for failure to include a project in a plan submitted to the City if the Registrant has used commercially reasonable efforts to anticipate and plan for the project.
3. Applicants obtaining Anoka County Highway or Minnesota Department of Transportation right-of-way permits for facilities in their rights-of-way within the corporate limits of the City must provide a copy to the City and submit a copy of the plans with mapping data for recording purposes per Section 407.21.

1. Permit Required. Except as otherwise provided in this Code, no Person may obstruct or excavate any Right-of-Way, or install or place facilities in the right of way without first having registered and obtained the appropriate Right-of-Way Permit from the City to do so.
   1. Excavation Permit. An Excavation Permit is required to excavate that part of the Right-of-Way described in such permit and to hinder free and open passage over the specified portion of the Right-of-Way by placing equipment or facilities described therein, to the extent and for the duration specified therein.
      
      Multiple excavations limited to 600 feet are considered one project and require an Excavation Permit. Each permit application will require the mapping data per Section 407.21.
   2. Obstruction Permit. An Obstruction Permit is required to hinder free and open passage over a specified portion of Right-of-Way for periods in excess of 4 consecutive daylight hours by placing Equipment described therein on the Right-of-Way, to the extent and for the duration specified therein.
      
      An Obstruction Permit is not required if a Person already possesses a valid Excavation Permit for the same project. Failure to obtain an Obstruction Permit prior to the obstruction will require an after-the-fact obstruction permit plus payment of a delay penalty.
   3. Small Wireless Facility Permit. A small wireless facility permit is required by a registrant to erect or install a wireless support structure, to collocate a small wireless facility, or to otherwise install a small wireless facility in the specified portion or the right of way, to the extent specified therein, provided that such permit shall remain in effect for the length of time the facility is in use, unless lawfully revoked.
   4. Permit Waiver. In the event of a major catastrophe or emergency declared by the City requiring the restoration of services that are within the right-of-way, the requirement for permits and permit fees may be waived by the City at its discretion.
      
      After restoration of the service has been completed, an updated mapping plan per Section 407.21 must be submitted to the City within 60 days.
2. Permit Extensions. No Person may excavate or obstruct the right-of-way beyond the date or dates specified in the permit unless such Person (i) makes a Supplementary Application for another Right-of-Way Permit before the expiration of the initial permit, and (ii) a new permit or permit extension is granted.
3. Delay Penalty. Notwithstanding subd. 2 of this section, the City shall establish and impose a Delay Penalty in accordance with Minnesota Rule, Part 7819.1000 subp. 3 for unreasonable delays not including days during which work cannot be done because of circumstances constituting force majeure or days when work is prohibited as unseasonal or unreasonable in completion of permitted Right-of-Way activity. The Delay Penalty shall be established from time to time by the City Council and shall include any delay or damages charged by the City’s construction contractor and may include liquidated damages consistent with the contract.
4. Permit Display. Permits issued under this Chapter shall be conspicuously displayed or otherwise available at all times at the indicated work site and shall be available for inspection by the City.

Application for a permit is made to the City. Right-of-Way Permit applications shall contain, and will be considered complete only upon compliance with the requirements of the following provisions.

1. Registration with the City pursuant to this Chapter.
2. Submission of a completed permit application form, including all required attachments, and scaled drawings showing the location and area of the proposed project and the location of all known existing and proposed Facilities.
3. Payment of money due the City for
   1. permit fees, estimated Restoration Costs and other Management Costs;
   2. prior permitted or unpermitted Right-of-Way activity;
   3. any undisputed loss, damage, or expense suffered by the City because of Applicant’s prior activity in the Rights-of-Way or any Emergency actions taken by the City;
   4. franchise or user fees, if applicable.
4. Payment of disputed amounts due the City by posting security or depositing in an escrow account an amount equal to at least 110% of the amount owing.
5. When an Excavation Permit is requested for purposes of installing additional Facilities, and the posting of a Construction Performance Bond for the additional Facilities is insufficient, the posting of an additional or larger Construction Performance Bond for the additional Facilities may be required.

1. Permit Issuance. If the Applicant has satisfied the requirements of this Chapter, the City shall issue a permit.
2. Conditions. The City may impose reasonable conditions upon the issuance of the permit and the performance of the Applicant thereunder to protect the health, safety and welfare or when necessary to protect the Right-of-Way and its current use.
3. Compliance with Laws. In addition, a permittee shall comply with all requirements of local, state, and federal laws, including but not limited to Minnesota Statutes, Section 216D.01 - .09 (Gopher One Call Excavation Notice System) and Minnesota Rules, Chapter 7560.
4. Supplemental Provisions for Small Wireless Facility Permits
   1. Small Wireless Facility Agreement. A Small Wireless Facility shall only be collocated on a small wireless support structure owned or controlled by the City, or any other City asset in the right-of-way, after the Applicant has executed a standard small wireless facility collocation agreement with the City. The standard collocation agreement may require payment of the following:
      1. Up to $150 per year for rent to collocate on the City structure;
      2. $25 per year for maintenance associated with the collocation;
      3. A monthly fee for electrical service as follows:
         1. $73 per radio node less than or equal to 100 maximum watts;
         2. $182 per radio node over 100 maximum watts; or
         3. The actual costs of electricity, if the actual cost exceed the foregoing.
            
         The standard collocation agreement shall be in addition to, and not in lieu of, the required small wireless facility permit, provided, however, that the Applicant shall not be additionally required to obtain a license or franchise in order to collocate. Issuance of a small wireless facility permit does not supersede, alter or affect any then-existing agreement between the City and Applicant.
   2. Deadline for Action The City shall approve or deny a small wireless facility permit application within 90 days after filing of such application. The small wireless facility permit, and any associated building permit application, shall be deemed approved if the City fails to approve or deny the application within the review periods established in this section.
   3. Consolidated Permit Applications An Applicant may file a consolidated small wireless facility permit application addressing the proposed collocation of up to 15 small wireless facilities, or a greater number if agreed to by a local government unit, provided that all small wireless facilities in the application:
      1. Are located within a two-mile radius;
      2. Consist of substantially similar equipment; and
      3. Are to be placed on similar types of wireless support structures.
         
      In rendering a decision on a consolidated permit application, the City may approve some small wireless facilities and deny others, but may not use denial of one or more permits as a basis to deny all small wireless facilities in the application.
   4. Tolling for Action. The 90-day deadline for action on a small wireless facility permit application may be tolled if:
      1. The City receives applications from one or more Applicants seeking approval of permits for more than 30 small wireless facilities within a seven-day period. In such case, the City may extend the deadline for all such applications by 30 days by informing the affected Applicants in writing of such extension.
      2. The Applicant fails to submit all required documents or information and the City provides written notice of incompleteness to the Applicant within 30 days of receipt the application. Upon submission of additional documents or information, the City shall have ten days to notify the Applicant in writing of any still-missing information.
      3. The City and a small wireless facility Applicant agree in writing to toll the review period.

1. Excavation Permit Fee. The Excavation Permit Fee shall be established by the City in an amount sufficient to recover the following costs:
   1. City Management Costs;
   2. Mapping Costs;
   3. Degradation Costs, if applicable.
2. Obstruction Permit Fee. The Obstruction Permit Fee shall be in an amount sufficient to recover the City Management Costs associated with recording and inspecting the right-of-way obstruction.
3. Small Wireless Facility Permit Fee. The City shall impose a small wireless facility permit fee in an amount sufficient to recover:
   1. City Management Costs;
   2. City engineering, make-ready, and construction costs associated with collocation of small wireless facilities;
   3. Mapping Costs;
   4. Degradation Costs, if applicable.
4. Payment of Permit Fees.
   1. No Right-of-Way Permit shall be issued without payment of associated Right-of-Way Permit Fees, unless otherwise specified in this Chapter. The City may allow Applicant to pay such fees within thirty (30) days of billing.
   2. The mapping portion of the excavation fees is waived if the mapping data provided to the City is in a GIS format compatible with the City’s standards.
5. Nonrefundable. Permit fees that were paid for a permit that the City has revoked for a breach as stated in Section 407.20 are not refundable.
6. Application to Franchises. Unless otherwise agreed to in a franchise, management costs may be charged separately from and in addition to the franchise fees imposed on a right-of-way user in the franchise.
7. Waiver of Fees. Payment of fees, as identified in this Chapter, with the exception of restoration costs, for water and/or sanitary sewer connections to property in the City are waived. However Registration and the Right-of-way Permit application must be submitted and approved by the City prior to commencement of any work.

1. Timing. The work to be done under the Excavation Permit, and the Patching or Restoration of the Right-of-Way as required herein, must be completed within the dates specified in the permit, increased by as many days as work could not be done because of extraordinary circumstances beyond the control of the Permittee or when work was prohibited as unseasonal or unreasonable under Section 407.14.
2. Patch and Restoration. Permittee shall Patch its own work. The City may choose either to have the Permittee restore the Right-of-Way or to restore the pavement itself.
   1. City Restoration. If the City restores the pavement, Permittee shall pay the costs thereof within thirty (30) days of billing. If, during the twenty-four (24) months following such Restoration, the pavement settles due to Permittee’s improper backfilling, the Permittee shall pay to the City, within thirty (30) days of billing, all costs associated with having to correct the defective work.
   2. Permittee Restoration. If the Permittee Restores the Right-of-Way itself, the City may require at the time of application for an Excavation Permit the posting of a Construction Performance Bond in an amount determined by the City to be sufficient to cover the cost of Restoration in accordance with the provisions of Minnesota Rules, Part 7819.3000. If, within twenty-four (24) months after completion of the Restoration of the Right-of-Way, the City determines that the Right-of-Way has been properly restored, the surety on the Construction Performance Bond shall be released.
3. Standards. The Permittee shall perform Excavation Patching and/or Restoration according to the standards and with the materials specified by the City and shall comply with Minnesota Rules, Part 7819.1100. The City shall have the authority to prescribe the manner and extent of the Restoration, and may do so in written procedures of general application or on a case-by-case basis.
   
   Methods of restoration may include, but are not limited to, patching, replacement of the right-of-way base, and milling and overlay of the entire area of the right-of-way affected by the work.
   
   The permittee shall correct defects in patching, or restoration performed by permittee or its agents. Permittee upon notification from the City, shall correct all restoration work to the extent necessary, using the method required by the City. Said work shall be completed within five (5) calendar days of the receipt of the notice from the City, not including days during which work cannot be done because of circumstances constituting force majeure or days when work is prohibited as unseasonal or unreasonable under Section 407.14.
   
   If the permittee fails to restore the right-of-way in the manner and to the condition required by the City, or fails to satisfactorily and timely complete all restorations required by the City, the City as an option, may do such work. In that event, the permittee shall pay to the City, within thirty (30) days of billing, the cost of restoring the right-of-way.
4. Guarantees. By choosing to restore the Right-of-Way itself, the Permittee guarantees its work and shall maintain it for twenty-four (24) months following its completion. During this 24-month period it shall, upon notification from the City, correct all restoration work to the extent necessary, using the method required by the City. Said work shall be completed within five (5) calendar days of the receipt of the notice from the City, not including days during which work cannot be done because of circumstances constituting force majeure or days when work is prohibited as unseasonal or unreasonable under Section 407.14.
5. Obligation. Construction triggers an obligation of the right-of-way user that the right-of-way restoration be completed according to the conditions set forth in this Chapter. The right-of-way user also assumes responsibility for “as built” drawings and for repairing facilities or structures, including right-of-way that was damaged during facility installation. The obligation is limited to one year for plantings and turf establishment.
6. Failure to Restore. If the Permittee fails to restore the Right-of-Way in the manner and to the condition required by the City, or fails to satisfactorily and timely complete all Restoration required by the City, the City at its option may do such work. In that event the Permittee shall pay to the City, within thirty (30) days of billing, the cost of Restoring the Right-of-Way. If Permittee fails to pay as required, the City may exercise its rights under the Construction Performance Bond.
7. Degradation Cost in Lieu of Restoration. In lieu of Right-of-Way Restoration, a Right-of-Way user may elect to pay a Degradation Fee with the approval of the City. However, the Right-of-Way User shall remain responsible for Patching and the Degradation Fee shall not include the cost to accomplish these responsibilities.

1. Joint Application. Registrants may jointly apply for permits to Excavate or Obstruct the Right-of-Way at the same place and time.
2. With City Projects. Registrants who join in a scheduled Obstruction or Excavation performed by the City, whether or not it is a joint application by two or more Registrants or a single application, are not required to pay the Obstruction and Degradation portions of the permit fee.
   
   A right-of-way permit application must be completed. In these circumstances, the excavation fee will be waived.
   
   Mapping data must be provided per Section 407.21.
3. Shared Fees. Registrants who jointly apply for Right-of-Way Permits, which the City does not perform, may share in the payment of the Right-of-Way Permit Fee. Registrants must agree among themselves as to the portion each will pay and indicate the same on their applications.

1. Limitation on Area. A Right-of-Way Permit is valid only for the area of the Right-of-Way specified in the permit. No Permittee may obstruct or do any work outside the area specified in the permit, except as provided herein. Any Permittee which determines that an area greater than that specified in the permit must be Obstructed or Excavated must before working in that greater area (i) make application for a permit extension and pay any additional fees required thereby, and (ii) be granted a new permit or permit extension.
2. Limitation on Dates. A Right-of-Way Permit is valid only for the dates specified in the permit. No Permittee may begin its work before the permit start date or, except as provided herein, continue working after the end date. If a Permittee does not finish the work by the permit end date, it must apply for a new permit for the additional time it needs, and receive the new permit or an extension of the old permit before working after the end date of the previous permit. This Supplementary Application must be approved before the initial permit end date.

1. Compliance with Other Laws. Obtaining a Right-of-Way Permit does not relieve Permittee of its duty to obtain all other necessary permits, licenses, and authority and to pay all fees required by the City or other applicable rule, law or regulation. A Permittee shall comply with all requirements of local, state and federal laws, including Minnesota Statutes, Section 216D.01-.09 (“One Call Excavation Notice System”). A Permittee shall perform all work in conformance with all applicable codes and established rules and regulations, and is responsible for all work done in the Right-of-Way pursuant to its permit, regardless of who does the work.
2. Prohibited Work. Except in an Emergency, and with the approval of the City, no Right-of-Way Obstruction or Excavation may be done when seasonally prohibited or when conditions are unreasonable for such work.
3. Interference with Right-of-Way. A Permittee shall not so Obstruct a Right-of-Way that the natural free and clear passage of water through the gutters or other waterways shall be interfered with. Private vehicles of those doing work in the Right-of-Way may not be parked within or next to a permit area, unless parked in conformance with City parking regulations. The loading or unloading of trucks must be done solely within the defined permit area unless specifically authorized by the permit.
4. Trenchless Excavation. As a condition of all applicable permits, permittees employing trenchless excavation methods, including but not limited to Horizontal Directional Drilling, shall follow all requirements set forth in Minnesota Statutes, Chapter 216D and Minnesota Rules, Chapter 7560 and shall require potholing or open cutting over existing underground utilities before excavating, as determined by the Director.

1. Reasons for Denial. Except in an emergency, no right-of-way permit will be granted.
   1. To any person required to be registered who has not done so;
   2. To any person required to file an annual report but has failed to do so;
   3. For any next-year project not listed in the construction and major maintenance plan required under this Chapter;
   4. For any project which requires the excavation of any portion of a right-of-way which was constructed or reconstructed within the preceding five (5) years;
   5. To any person who has failed within the past two (2) years to comply, or is presently not in full compliance, with the requirements of this Chapter;
   6. To any person who has outstanding debt owed to the City; and
   7. To any person as to whom there are existing grounds for the revocation of a permit.
      
      Notwithstanding the provisions of this Section, the City may issue a permit in any case where the permit is necessary (1) to prevent substantial economic hardship to a customer of the permit Applicant, or (2) to allow such customer to materially improve its utility service, or (3) to allow a new economic development project, or (4) as otherwise required by law; and where the permit Applicant did not have knowledge of the hardship, the plans for improvement of service, or the development project when said Applicant was required to submit its list of Next-year Projects.
      
      The City may deny a permit to protect the public health, safety and welfare, to prevent interference with the safety and convenience of ordinary travel over the right-of-way, would cause a conflict or interfere with an exhibition, celebration, festival, or any other event, or when necessary to protect the right-of-way, its use, and its users. The City may consider one or more of the following factors:
      1. the extent to which right-of-way space where the permit is sought is available;
      2. the competing demands for the particular space in the right-of-way;
      3. the availability of other locations in the right-of-way or in other rights-of-way for the equipment or facilities of the permit Applicant;
      4. the applicability of ordinance or other regulations of the right-of-way that affect location of equipment or facilities in the right-of-way;
      5. the degree of compliance of the Applicant with the terms and conditions of its franchise, this Chapter, and other applicable ordinances and regulations;
      6. the degree of disruption to surrounding neighborhoods and businesses that will result from the use of that part of the right-of-way;
      7. the condition and age of the right-of-way, and whether and when it is scheduled for total or partial reconstruction; and
      8. the balancing of the costs of disruption to the public and damage to the right-of-way, against the benefits to that part of the public served by the expansion into additional parts of the right-of-way.
2. Procedural Requirements. The denial or revocation of a permit must be made in writing and must document the basis for the denial. The City must notify the Applicant or right-of-way user in writing within three business days of the decision to deny or revoke a permit. If an application is denied, the right-of-way user may address the reasons for denial identified by the City and resubmit its application. If the application is resubmitted within 30 days of receipt of the notice of denial, no additional application fee shall be imposed. The City must approve or deny the resubmitted application within 30 days after submission.

The excavation, backfilling, patching, repair, and restoration, and all other work performed in the Right-of-Way shall be performed and completed in conformance with Minnesota Rules, Parts 7819.1100 and 7819.5000, Engineering Standards adopted by the PUC, City, county, and State, and any other applicable local requirements, in so far as they are not inconsistent with the Minnesota Statutes, Sections 237.162 and 237.163.

1. Notice of Completion. When the work under any permit hereunder is completed, the permittee shall furnish a Completion Certificate in accordance with Minnesota Rule, Part 7819.1300.
   
   Unless waived by the City, a person designated by the right-of-way user as a responsible employee shall sign a completion certificate showing the completion date for the work performed, identifying the installer and designer of record, and certifying that work was completed according to the requirements of the City.
   
   If necessary due to approved changes for the work as projected when the permit was applied for, the permittee shall submit “as built” drawings or maps within six months of completing the work, showing any deviations from the plan that are greater than plus or minus two feet.
   
   The City shall respond within 30 days of receipt of the completion certificate. Failure to approve or disapprove the Permittee’s performance within 30 days is deemed to be approval by the City.
2. Site Inspection. Permittee shall make the work-site available to the City and to all others as authorized by law for inspection at all reasonable times during the execution of and upon completion of the work.
3. Authority of Director
   1. At the time of inspection the City may order the immediate cessation of any work which poses a serious threat to the life, health, safety or well-being of the public.
   2. The Director may issue an order to the Permittee for any work which does not conform to the terms of the permit or other applicable standards, conditions, or codes. The order shall state that failure to correct the violation will be cause for revocation of the permit. Within ten (10) days after issuance of the order, the Permittee shall present proof to the City that the violation has been corrected. If such proof has not been presented within the required time, the City may revoke the permit pursuant to Section 407.20.

1. Emergency Situations. Each Registrant shall immediately notify the City of any event regarding its Facilities which it considers to be an Emergency. The Registrant may proceed to take whatever actions are necessary to respond to the Emergency. Excavators’ notification to Gopher State One Call regarding an emergency situation does not fulfill this requirement. Within two business days after the occurrence of the Emergency the Registrant shall apply for the necessary permits, pay the fees associated therewith and fulfill the rest of the requirements necessary to bring itself into compliance with this Chapter for the actions it took in response to the Emergency.
   
   If the City becomes aware of an emergency regarding a Registrant’s Equipment or Facilities, the City will attempt to contact the Local Representative of each Registrant affected, or potentially affected by the Emergency. In any event, the City may take whatever action it deems necessary to respond to the Emergency, the cost of which shall be borne by the Registrant whose Facilities occasioned the Emergency.
2. Non-Emergency Situations. Except in an Emergency, any Person who, without first having obtained the necessary permit, Obstructs or Excavates a Right-of-Way must subsequently obtain a permit, and as a penalty pay double the normal fee for said permit, pay double all the other fees required by the Legislative Code, deposit with the City the fees necessary to correct any damage to the Right-of-Way and comply with all of the requirements of this Chapter.

If the activity in the Right-of-Way begins later or ends sooner than the date given on the Right-of-Way Permit, Permittee shall notify the City of the accurate information as soon as this information is known.

1. Substantial Breach. The City reserves its right, as provided herein, to revoke any Right-of-Way Permit, without a fee refund, in the event of a substantial breach of the terms and conditions of any statute, ordinance, rule or regulation, or any material condition of the permit including a threat to the safety of workers or the right-of-way user or the utility users. A substantial breach by Permittee shall include, but shall not be limited to, the following:
   
   The violation of any material provision of the Right-of-Way Permit;
   1. An evasion or attempt to evade any material provision of the Right-of-Way Permit, or the perpetration or attempt to perpetrate any fraud or deceit upon the City or its citizens;
   2. Any material misrepresentation of fact in the application for a Right-of-Way Permit;
   3. The failure to complete the work in a timely manner; unless a permit extension is obtained or unless the failure to complete work is due to reasons beyond the Permittee’s control; or
   4. Failure to relocate existing facilities as specified in Sec. 407.23; or
   5. Failure of the utility to pay any required costs, fees, or charges billed by the City or
   6. The failure to correct, in a timely manner, work that does not conform to a condition indicated on an Order issued pursuant to this Chapter.
2. Written Notice of Breach. If the City determines that the Permittee has committed a substantial breach of a term or condition of any statute, ordinance, rule, regulation or any condition of the permit the City shall make a written demand upon the Permittee to remedy such violation. The demand shall state that continued violations may be cause for revocation of the permit. A substantial breach, as stated above, will allow the City to place additional or revised conditions on the permit to mitigate and remedy the breach.
3. Response to Notice of Breach. Within twenty-four (24) hours of receiving notification of the breach, Permittee shall provide the City with a plan, acceptable to the City that will cure the breach. Permittee’s failure to so contact the City, or the Permittee’s failure to submit an acceptable plan, or Permittee’s failure to reasonably implement the approved plan, shall be cause for immediate revocation of the permit. Further, Permittee’s failure to so contact the City, or the Permittee’s failure to submit an acceptable plan, or Permittee’s failure to reasonably implement the approved plan, shall automatically place the Permittee on Probation for one (1) full year.
4. Cause for Probation. From time to time, the City may establish a list of conditions of the permit, which if breached will automatically place the Permittee on Probation for one full year, such as, but not limited to, working out of the allotted time period or working on Right-of-Way grossly outside of the permit authorization.
5. Automatic Revocation. If a Permittee, while on Probation, commits a breach as outlined above, Permittee’s permit will automatically be revoked and Permittee will not be allowed further permits for one full year, except for Emergency repairs.
6. Reimbursement of City Costs. If a permit is revoked, the Permittee shall also reimburse the City for the City’s reasonable costs, including Restoration Costs and the costs of collection and reasonable attorneys’ fees incurred in connection with such revocation.

1. Information Required. Each Registrant shall provide Mapping information required by the City in accordance with Minnesota Rules, Parts 7819.4000 and 7819.4100. Failure to provide Mapping and detailed drawings pursuant to this subsection shall be grounds for revoking the permit holder’s registration. Mapping data shall include the following information:
   1. location and approximate depth of Applicant’s mains, cables, conduits, switches, and related equipment and facilities, with the location based on:
      1. offsets from property lines, distances from the centerline of the public right-of-way, and curb lines as determined by the City; or
      2. coordinates derived from the coordinate system being used by the City; or
      3. any other system agreed upon by the right-of-way user and City;
   2. the type and size of the utility;
   3. a description showing above-ground appurtenances;
   4. a legend explaining symbols, characters, abbreviations, scale, and other data shown on the map; and
   5. any facilities to be abandoned, if applicable, in conformance with Minnesota Statutes, Section 216D.04, subd. 3.
      
   The permittee shall submit “as built” drawings reflecting any subsequent changes and variations from the information provided under 407.08, Subd. 2.
   
   The right-of-way user is not required to provide or convey mapping information or data in a format or manner that is different from that which it currently utilizes and maintains. The right-of-way user shall, however, include the cost to covert the data furnished by the right-of-way user to a format currently in use by the City as part of the permit application fee. These data conversion costs, unlike other costs that make up permit fees, may be included in the permit fee after the permit application process is completed and shall be immediately due to the City upon the ascertainment of the cost and notice of the fee to the Applicant. Any permit for which such fee has not been paid within 30 days of notice from the City may upon written notice be revoked. The City shall not issue any other permits to the registrant related to any City right-of-way until such fee is paid.
   
   Mapping data shall be provided with the specificity requested by the City for inclusion in the mapping system used by the City.
   
   For mapping data provided to the City of Fridley in GIS format compatible with the City’s standards, the mapping portion of the excavation fee is waived.
2. Submittal Requirement.
   1. Within six (6) months after the acquisition, installation, or construction of additional equipment or any relocation, abandonment, or disuse of existing equipment, each registrant shall submit the Mapping Data required herein.
   2. All existing right-of-way users shall submit detailed plans as may be reasonable and practical for all facilities and equipment installed, used or abandoned within the public right-of-way.
   3. Notwithstanding the foregoing, Mapping Data shall be submitted by all Registrants for all equipment which is to be installed or constructed after the date of passage of this Chapter at the time any permits are sought under these ordinances.
   4. A new Registrant, or a Registrant which has not submitted a plan as required above, shall submit complete and accurate Mapping Data for all its equipment at the time any permits are sought under these ordinances.
3. Telecommunication Equipment. Information on existing facilities and equipment of telecommunications right-of-way users need only be supplied in the form maintained by the telecommunications right-of-way user.
4. Service Laterals. All permits issued for the installation or repair of service laterals, other than minor repairs as defined in Minnesota Rules, Part 7560.0150, subp. 2, shall require the permittee’s use of appropriate means of establishing the horizontal locations of installed service laterals and the service lateral vertical locations in those cases where the Director reasonably requires it. Permittees or their subcontractors shall submit to the Director evidence satisfactory to the Director of the installed service lateral locations. Compliance with this subdivision 2 and with applicable Gopher State One Call law and Minnesota Rules governing service laterals installed after Dec. 31, 2005, shall be a condition of any City approval necessary for:
   1. payments to contractors working on a public improvement project, including those under Minnesota Statutes, Chapter 429, and
   2. City approval under development agreements or other subdivision or site plan approval under Minnesota Statutes, Chapter 462. The Director shall reasonably determine the appropriate method of providing such information to the City. Failure to provide prompt and accurate information on the service laterals installed may result in the revocation of the permit issued for the work or future permits to the offending permittee or its subcontractors.

1. Placement, location, and relocation of facilities must comply with the Act, with other applicable law, and with Minnesota Rules, Parts 7819.3100, 7819.5000, and 7819.5100, to the extent the rules do not limit authority otherwise available to cities.
2. Corridors. The City may assign specific corridors within the Right-of-Way, or any particular segment thereof as may be necessary, for each type of Facility that is or, pursuant to current technology, the City expects will someday be located within the Right-of-Way. All excavation, obstruction, or other permits issued by the City involving the installation or replacement of Facilities shall designate the proper corridor for the Facilities at issue.
   
   Any Registrant who has Facilities in the Right-of-Way in a position at variance with the corridors established by the City shall, no later than at the time of the next reconstruction or excavation of the area where the Facilities are located, move the Facilities to the assigned position within the Excavation of the Right-of-Way, unless this requirement is waived by the City for good cause shown, upon consideration of such factors as the remaining economic life of the Facilities, public safety, customer Service needs and hardship to the Registrant.
3. Nuisance. Any facilities found in a right-of-way that have not been registered shall be deemed to be a nuisance. The City may exercise any remedies or rights it has at law or in equity, including, but not limited to, abating the nuisance or taking possession of the Equipment or Facilities and restoring the right-of-way to a usable condition.
4. Limitation of Space. To protect public health, safety, and welfare, or when necessary to protect the Right-of-Way and its current use, the City shall have the power to prohibit or limit the placement of new or additional Facilities within the Right-of-Way. In making such decisions, the City shall strive to the extent possible to accommodate all existing and potential users of the Right-of-Way, but shall be guided primarily by considerations of the public interest, the public’s needs for the particular Utility Service, the condition of the Right-of-Way, the time of year with respect to essential utilities, the protection of existing Facilities in the Right-of-Way, and future City plans for public improvements and development projects which have been determined to be in the public interest.

A Registrant must promptly and at its own expense, with due regard for seasonal working conditions, permanently remove and relocate its Facilities in the Right-of-Way whenever the City for good cause requests such removal and relocation, and shall restore the Right-of-Way consistent with Minnesota Rules, Parts 7819.0050 – 7819.9950. The City may make such request to prevent interference by the Company’s Equipment or Facilities with (i) a present or future City use of the Right-of-Way, (ii) a public improvement undertaken by the City, (iii) an economic development project in which the City has an interest or investment, (iv) when the public health, safety and welfare require it, or (v) when necessary to prevent interference with the safety and convenience of ordinary travel over the Right-of-Way.

Notwithstanding the foregoing, a Person shall not be required to remove or relocate its Facilities from any Right-of-Way which has been vacated in favor of a non-governmental entity unless and until the reasonable costs thereof are first paid to the Person thereof.

In addition to complying with the requirements of Minnesota Statutes, Section 216D.01-.09 (“One Call Excavation Notice System”) before the start date of any Right-of-Way excavation, each Registrant who has Facilities or Equipment in the area to be excavated shall mark the horizontal and vertical placement of all said Facilities. Any Registrant whose Facilities are less than twenty (20) inches below a concrete or asphalt surface shall notify and work closely with the excavation contractor to establish the exact location of its Facilities and the best procedure for excavation.

When the City does work in the Right-of-Way and finds it necessary to maintain, support, or move a person’s Facilities to protect it, the City shall notify the Local Representative as early as is reasonably possible. The costs associated therewith will be billed to that person and must be paid within thirty (30) days from the date of billing. Each person shall be responsible for the cost of repairing any Facilities in the Right-of-Way which it or its Facilities damages. Each person shall be responsible for the cost of repairing any damage to the Facilities of another persons caused during the City’s response to an Emergency occasioned by that persons Facilities.

1. Reservation of Right. If the City vacates a Right-of-Way which contains the Facilities of a Registrant, and if the vacation does not require the relocation of Registrant’s or Permittee’s Facilities, the registrant’s rights in the vacated right-of-way are governed by Minnesota Rules, Part 7819.3200 and the City shall reserve, to and for itself and all Registrants having Facilities in the vacated Right-of-Way, the right to install, maintain and operate any Facilities in the vacated Right-of-Way and to enter upon such Right-of-Way at any time for the purpose of reconstructing, inspecting, maintaining or repairing the same.
2. Relocation of Facilities. If the vacation requires the relocation of Registrant’s or Permittee’s Facilities; and (i) if the vacation proceedings are initiated by the Registrant or Permittee, the Registrant or Permittee must pay the relocation costs; or (ii) if the vacation proceedings are initiated by the City, the Registrant or Permittee must pay the relocation costs unless otherwise agreed to by the City and the Registrant or Permittee; or (iii) if the vacation proceedings are initiated by a Person or Persons other than the Registrant or Permittee, such other Person or Persons must pay the relocation costs.

1. Authority, Generally. As a condition for issuing a permit for work on a public right-of-way, the City may require the permittee to indemnify the City against liability claims. The City may require indemnification when a permit authorizes a permittee to obstruct or excavate on or within a public right-of-way to install, maintain, or repair the permittee’s facilities.
2. Claims Indemnified City may require the permittee to defend, indemnify, and hold harmless the City from all liability or claims of liability for bodily injury or death to persons, or for property damage, in which the claim:
   1. alleges a negligent or otherwise wrongful act or omission of the permittee or its employee, agent, or independent contractor in installing, maintaining, or repairing the permittee’s facilities; and alleges that the City is liable, without alleging any independent negligent, or otherwise wrongful act or omission on the part of the City; or
   2. is based on the City negligent or otherwise wrongful act or omission in issuing the permit or in failing to properly or adequately inspect or enforce compliance with a term, condition or purpose of the permit granted to the permittee.
3. Claims not Indemnified A permittee is not required to indemnify the City for losses or claims occasioned by the negligent or otherwise wrongful act or omission of the City except:
   1. to the extent authorized in subpart 2 regarding the issuance of a permit or the inspection or enforcement of compliance with the permit; or
   2. when otherwise provided in an applicable franchise agreement.
4. Remedy is Additional; Subrogation. A defense or indemnification of the City by a permittee is deemed not to be a waiver of any defense or immunity otherwise available to the City.
   
   A permittee, in defending any action on behalf of the City is entitled to assert every defense or immunity that the City could assert in its own behalf.

1. Discontinued Operations. A Registrant who has determined to discontinue all or a portion of its operations in the City must provide information satisfactory to the City that the Registrant’s obligations for its Facilities in the Right-of-Way under this Chapter have been lawfully assumed by another Registrant and locate and provide to the City a map which clearly identifies the facility and also maintains it as a real property record.
2. Abandoned Facilities. Facilities of a Registrant who fails to comply with Subd. 1 of this Section, and which, for two (2) years, remains unused or one year after the passage of this Chapter, any Facilities found in a Right-of-Way that have not been Registered with the City shall be deemed to be abandoned. Abandoned Facilities are deemed to be a nuisance. The City may exercise any remedies or rights it has as law or in equity, including, but not limited to, (i) abating the nuisance, (ii) taking possession of the Facilities and restoring the Right-of-Way to a useable condition, or (iii) requiring removal of the Facilities by the Registrant, or the Registrant’s successor in interest.
3. Removal. Any Registrant who has unused, unusable and abandoned Facilities in any Right-of-Way shall remove it from that Right-of-Way if required in conjunction with other right-of-way repair, excavation or construction, unless this requirement is waived by the City or other remedy agreed to.

A Right-of-Way user that: (1) has been denied registration; (2) has been denied a permit; (3) has had a permit revoked; or (; (4) believes that the fees imposed are not in conformity with Minnesota Statutes, Section 237.163, subd. 6; or (5) disputes a determination of the Director regarding Section 1.24, subd.2 of this ordinance may have the denial, revocation, fee imposition, or decision reviewed, upon written request, by the City Council. The City Council shall act on a timely written request at its next regularly scheduled meeting. A decision by the City Council affirming the denial, revocation, or fee imposition will be in writing and supported by written findings establishing the reasonableness of the decision.

A Permittee’s or Registrant’s rights are subject to the regulatory and police powers of the City to adopt and enforce general ordinances necessary to protect the health, safety and welfare of the public.

If any portion of this Chapter is for any reason held invalid by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions thereof. Nothing in this Chapter precludes the City from requiring a franchise agreement with the Applicant, as allowed by law, in addition to requirements set forth herein.

Any fees imposed under this Chapter shall be reviewed and adopted at least annually at the same time and in the same manner as other fees established by the City.

At any time, in its discretion, the City expressly reserves the right to review the fees imposed in this Chapter and, upon notice and public hearing, modify them if it is satisfied that such action is necessary to reflect the cost of regulating and supervising the activities governed by this Chapter.

The following terms shall mean:

1. City. The City of Fridley, County of Anoka, State of Minnesota.
2. City Utility System. Facilities used for providing non-energy related public utility service owned or operated by city or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other forms of energy.
3. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government which preempts all or part of the authority to regulate electric retail rates now vested in the Minnesota Public Utilities Commission.
4. Company. Northern states Power Company, a Minnesota corporation, its successors and assigns.
5. Electric Facilities. Electric transmission and distribution towers, poles, lines, guys, anchors, conduits, fixtures, and necessary appurtenances owned or operated by Company for the purpose of providing electric energy for public use.
6. Non-Betterment Costs. Costs incurred by Company from relocation, removal or rearrangement of Electric Facilities that do not result in an improvement to the Electric Facilities.
7. Notice. A writing served by any party or parties on any other party or parties. Notice to Company shall be mailed to the General Counsel, Law Department, 414 Nicollet Mall, Minneapolis, MN 55401. Notice to the City shall be mailed to the City Clerk, 6431 University Avenue N.E., Fridley, MN 55432-4383. Either party may change its respective address for the purpose of this Ordinance by written notice to the other party.
8. Public Ground. Land owned by the City for park, open space or similar purpose, which is held for use in common by the public.
9. Public Way. Any street, alley, walkway or other public right-of-way within the City.

1. Grant of Franchise. City hereby grants Company, for a period of 20years, the right to transmit and furnish electric energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. For these purposes, Company my construct, operate repair and maintain Electric Facilities in, on, over, under and across the Public Ways and Public Grounds of City, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to ordinance and to the further provisions of this franchise agreement.
2. Effective Date; Written Acceptance. This franchise shall be in force and effect from and after its passage and its acceptance by Company, and its publication as required by law. An acceptance by Company must be filed with the City Clerk within 90 days after publication.
3. Service, Rates and Area. The service to be provided and the rates to be charged by Company for electric service in City are subject to the jurisdiction of the Commission. The area within the City in which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section 216B.40.
4. Publication Expense. The expense of publication of this Ordinance shall be paid b Company.
5. Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action permitted by law.

1. Location of Facilities. Electric Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System previously installed therein. Electric Facilities may be located on Public Grounds as determined by the City. Company’s construction, reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to other reasonable regulations of the city to the extent not inconsistent with the terms of this franchise agreement.
2. Field Locations. Company shall provide field locations for its underground Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D.
3. Permits Required. Company shall not open or disturb the surface of any Public Way or Public Ground for any purpose without first having obtained a permit from the city, if required by a separate ordinance, for which the city may impose a reasonable fee. Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. Company may, however, open and disturb the surface of any Public Way or Public Ground without permission from the City where an emergency exists requiring the immediate repair of Electric Facilities. In such event Company shall notify the City by telephone to the office designed by the City as soon as practicable. Not later than the second working day thereafter, Company shall obtain any required permits and pay any required fees.
4. Restoration. After undertaking any work requiring the opening of any Public Way or Public Ground, Company shall restore the same, including paving and its foundation, to as good a condition as formerly existed, and shall maintain any paved surface in good conditions for two years thereafter. The work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and materials, and put the Public way or Public ground in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this section 408.03.4, but the City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, letter of credit or any other form of security or assurance that may be required, under a separate existing or future ordinance of the City, of a person or entity obtaining the City’s permission to install, replace or maintain facilities in a Public Way.
5. Shared Use of Poles. Company shall make space available on its poles or towers for City fire, water utility, police or other City facilities whenever such use will not interfere with the use of such poles or towers by Company, by another electric utility, by a telephone utility, or by any cable television company or other form of communication company. In addition, the City shall pay for any added cost incurred by Company because of such use by City.
6. Avoid Damage to Electric Facilities. Nothing in his Section relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric facilities while performing any activity.
7. Notice of Improvements. The city must give Company reasonable notice of plans for improvements to Public ways or Public Ground where the City has reason to believe that Electric Facilities may affect or be affected by the improvement. The notice must contain: (i) the nature and character of the improvements, (ii) the Public Ways and Public Grounds upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Way or Public Ground is involved, the order in which the work is to proceed. The notice must be given to Company a sufficient length of time in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Electric Facilities.

1. Relocation of Electric Facilities in Public Ways. Except as provided in section 4.3, if the City determines to vacate a Public Way for a City improvement project, or at City’s cost to grade, regrade, or change the line of any Public way, or construct or reconstruct any City Utility system in any Public Way, it may order Company to relocate its Electric Facilities located therein if relocation is reasonably necessary to accomplish the City’s proposed public improvement. Company shall relocate its Electric Facilities as its own expense. The City shall give Company reasonable notice of plans to vacate for a City improvement project, or to grade, regrade, or change the line of any Public Way or to construct or reconstruct any City Utility System. If a relocation is ordered within five years of a prior relocation of the same Electric facilities, which was made at Company expense, the City shall reimburse Company for Non-Betterment Costs on a time and material basis, provided that if a subsequent relocation is required because of the extension of a City Utility System to a previously unserved area, Company may be required to make the subsequent relocation at its expense. Nothing in this Ordinance requires Company to relocate, remove, replace or reconstruct at its own expense its Electric Facilities where such relocation, removal, replacement or reconstruction is solely for the convenience of the city and is not reasonably necessary for the construction or reconstruction of a Public Way or City Utility System or other City improvement.
2. Relocation of Electric Facilities in Public Ground. Except as may be provided in Chapter 408.4.3, City may require Company at Company’s expense to relocate or remove its Electric Facilities from Public ground upon a finding by City that the Electric Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground.
3. Projects with Federal Funding. Relocated, removal, or rearrangement of any Company Electric facilities made necessary because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of Minnesota Statutes Section 161.46 as supplemented or amended. It is understood that the right herein granted to Company is a valuable right. City shall not order Company to remove or relocate its Electric Facilities when a Public Way is vacated, improved or realigned because of a renewal or a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable Non-Betterment Costs of such relocation and the loss and expense resulting therefrom are first paid to Company, but the City need not pay those portions of such for which reimbursement to it is not available.
4. No Waiver. The provisions of Section 4 apply only to Electric Facilities constructed in reliance on a franchise and Company does not waive its rights under an easement or prescriptive right, or State or County permit.

Company may trim all trees and shrubs in the Public Ways and Public Grounds of City interfering with the proper construction, operation, repair and maintenance of any Electric Facilities installed hereunder, provided that Company shall save the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City.

1. Indemnity of City. Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Electric facilities located in the Public ways and Public Grounds. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City’s negligence as to the issuance of permits for, or inspection of, Company’s plans or work. The city shall not be indemnified if the injury or damage results from the performance in a proper manner of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company’s determination.
2. Defense of City. In the event a suit is brought against the City under circumstances where this Agreement to indemnify applies, Company at it sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City; and Company, in defending any action on behalf of the City shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf.

The city shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. Except where required for a City improvement project, the vacation of any Public Way, after the installation of Electric Facilities, shall not operate to deprive Company of its rights to operate an maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall City be liable to Company for failure to specifically preserve a right-of-way under Minnesota Statutes, Section 160.29.

Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Section.

1. Fee Schedule. During the term of the franchise hereby granted, and in lieu of any permit or other fees being imposed on Company, the City may impose on Company a franchise fee not to exceed an amount determined by collecting the amounts indicated in a Fee Schedule set forth in a separate Section, as a percentage of Gross Revenues from the Public Street & Highway Lighting Class, as a percentage of Gross Revenues or a monthly meter charge from the Residential Class, or as a monthly meter charge from any other Customer Classification, from each customer in the designated Company Customer Classification for electric service at each and every customer location within the City based on a Fee Schedule form similar to the following:
   
   

   Customer Classification	Amount Per Month
   Residential
   Small C & I and Municipal With No Demand Charge
   Small C & I and Municipal With Demand Charge
   Large C & I - Secondary Voltage
   Large C & I - Primary Voltage & Above
   Public Street & Highway Lighting

   The franchise fee amount collected from each and every customer location in a Customer Classification shall be determined so that the total franchise fee amount collected annually from all customers in such Customer Classification does not exceed what is estimated by Company to be four percent of the total annual Gross revenues from such Customer Classification. The franchise fee imposed on all customers within a non-residential Customer Classification shall not exceed an amount which is estimated by Company to be five percent of the average annual bill collected from customers in the Small Customer Group in such Customer Classification. The Small Customer Group for each non-residential Customer Classification with more than 50 customers shall constitute 25 percent of the actual customers within the City in such Customer Classification which are estimated by Company to be the customers from which Company collects its lowest annual revenues with the Customer Classification. The Small Customer Group for each non-residential Customer Classification with 50 or fewer customers shall constitute ten percent of the actual customers within the City in such Customer Classification which are estimated by Company to be the customers from which Company collects its lowest annual revenues within such Customer Classification. Company shall, within 60 days of the City’s request, provide City with revenue estimates setting forth the revenues from the Small Customer Group for planning a Fee Schedule.
2. Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City council, which ordinance shall not be adopted until at least 60 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective until at least 60 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail. Chapter 408.02.5 shall constitute the sole remedy for solving disputes between Company and the City in regard to the interpretation of, or enforcement of, the separate ordinance. No action by the City to implement a separate ordinance will commence until this Ordinance is effective. A separate ordinance which imposes a lesser franchise fee on the Residential Class than the franchise fee imposed on any other Customer Classification, measured as a percentage of estimated total annual Gross Revenues from all customers in each class, shall not be effective against Company, The payment of a franchise fee as provided by this Section does not relieve Company from paying fees to City unrelated to the installation, ownership or operation of Electric Facilities, such as building permit fees.
3. Terms Defined. For the purpose of Chapter 408.09, the following definitions apply:
   
   3.1 “Customer Classification” refers to the classes listed on the Fee Schedule and as defined or determined in Company’s electric tariffs on file with the Commission.
   
   3.2 “Fee Schedule” refers to the schedule in Section 408.09.1 setting forth an amount per month for various customer classes.
   
   3.3 “Gross Revenues” for each Customer Classification means all sums received from Company billings for the sale or delivery of electricity to its retail customers within the corporate limits of the City within a Customer Classification, excluding any surcharge, sales tax, miscellaneous tariff charges or any similar addition to Company’s charges to customers for the purpose of reimbursing Company for the franchise fee, sales tax, or similar charges.
4. Collection of the Fee. The franchise fee shall be payable quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable Customer Classification in al customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service in excess of the amounts specifically permitted by this Chapter. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company’s applicable rate for electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers.
5. Conditions on the Fee. The separate ordinance imposing the fee shall not be effective against Company unless the separate ordinance lawfully imposes and the City quarterly or more often collects a fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the City from every other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The “same or greater equivalent amount” shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers, the percentage of the annual bill represented by the amount collected for the franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, as well as to the supply of energy needed to run machinery and appliances on premises located within or adjacent to the City, but shall not apply to energy sales for the purpose of providing fuel for vehicles.
6. Exclusive Electric Service. Company is currently the exclusive provider of retail electric service to its customers within the City in accordance with Minnesota Statutes, Section 216B.37 et seq. If Company is no longer the sole supplier of electric energy for any class of customers from which it is collecting a franchise fee based on a percentage of Gross Revenues, Company’s obligation to collect and pay a franchise fee on such retail electric service shall terminate upon 20 days Notice to City. Company will agree at City’s request to amend this franchise agreement to collect a monthly meter charge from such a class of customers which will result in the collection of approximately the same total franchise fee amount for the class as was being collected by applying the percentage fee.

1. Severability. Every section, provision, or part of this Code is declared separate from every other section, provision, or part; and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision or part. Where a provision of any other City code conflicts with the provisions of this code, the provision of this code shall prevail.
2. Limitation on Applicability. This Code constitutes a franchise agreement between the City and Company as the only parties and no provision of this franchise shall in any way inure to the benefit of any third person as a third party beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto.

Either party to this franchise agreement may at any time propose that the agreement be amended to address a subject of concern and the other party will consider whether it agrees that the amendment is mutually appropriate. If an amendment is agreed upon, this Code may be amended at any time by the city passing a subsequent ordinance declaring the provision of the amendment, which amendatory ordinance shall become effective upon the filing of Company’s written consent thereto with the City Clerk within 90 days after the effective date of the amendatory ordinance.

The municipal storm sewer system shall be operated as a public utility pursuant to Minnesota Statutes, Section 444.075 from which revenues will be derived subject to the provisions of this Chapter and Minnesota Statutes. The storm water drainage utility will be part of the public works department and under the administration of the public works director.

A Residential Equivalent Factor (REF) is the ratio of the average volume of runoff generated by one (1) acre of a given land use to the average volume of runoff generated by one (1) acre of typical single family residential land use, during a standard one (1) year rainfall event.

The REF values for various land uses are as follows:

For the purpose of calculating storm water drainage fees, all developed one family and duplex parcels shall be considered to have an acreage of one-third (1/3) acre. The quarterly storm water drainage rate shall be set by Council Resolution. (Ord. 1059)

The Council may adopt policies recommended by the public works director, by resolution, for adjustment of the storm water drainage fee for parcels based upon hydrologic data to be supplied by property owners, which data demonstrates a hydrologic response substantially different from the standards. Such adjustments of storm water drainage fees shall not be made retroactively.

'The following land uses are exempt from storm water drainage fees:

1. Public rights of way.
2. Vacant, unimproved land with ground cover.

Statements for storm water drainage fee shall be computed every three (3) months and invoiced by the finance department for each account on or about the tenth (10th) day of the month following the quarter. Such statement shall be due on or before the last day of the month in which the statement is mailed. Any prepayment or overpayment of charges shall be retained by the City and applied against subsequent quarterly fees.

If a property owner or person responsible for paying the storm water drainage fee questions the correctness of an invoice for such charge, such person may have the determination of the charge recomputed by written request to the public works director made within twelve (12) months of mailing of the invoice in question by the City.

Each quarterly billing for storm water drainage fees not paid when due shall incur a penalty charge of ten percent (10%) of the amount past due.

Any past due storm water drainage fees in excess of ninety (90) days past due on October 1 of any year may be certified to the County Auditor for collection with real estate taxes in the following year pursuant to Minnesota Statutes, Section 444.075, Subdivision 3. In addition, the City shall also have the right to bring civil action or to take other legal remedies to collect unpaid fees.