Loading...
FiberNet Advisory Board Agenda Packet 01-13-2015AGENDA FIBERNET MONTICELLO ADVISORY BOARD MEETING Tuesday, January 13, 2015 — 6 p.m. Boom Island Room, Monticello Community Center Members: Brian Stumpf, Charlotte Gabler, Jon Morphew, Dennis Sullivan, Jacob Kramer Others: Jeff O'Neill, Dan Olsen, Rachel Leonard, Bryan Rabe 1. Call to Order 2. Introductions 3. Additions to Agenda 4. Approval of Meeting Minutes 5. Network update. • C7 to E7 Migration • IOG Ring • FNMmail Server 6. Business Office Update • Television Price Increase • Subscriber Data • Utility Easements 7. Consideration of joint sales & branding efforts with Paragon for Hosted PBX services. 8. Authorization to proceed with investigating use of Golden West for after-hours Tech Support 9. Consideration of approving membership in NM Public Broadband Alliance with membership fee of $7800. 10. Review & discuss FiberNet Advisory Board responsibilities as specified by operational guidelines. 11. 2014 Review and 2015 Goals 12. Next Meeting — Tuesday, February 10, 2015 13. Adjourn Residential & Business Subscribers Service Jan Feb Mar Apr May Jun Phone Only 38 Internet Only 517 Television Only 89 Phone &Internet 171 Phone & Television 52 Internet & Television 351 Triple Play 321 Total Subscribers 1539 0 0 0 0 0 Total Phone Total Internet Total Television Business Subscribers Service Phone Only Internet Only Television Only Phone & Internet Phone & Television Internet & Television Triple Play Total Subscribers Total Phone Total Internet Total Television Jul Aug Sep Oct Nov Dec 0 0 0 0 0 0 �aaaaaaaaaaa 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 �aaaaaaaaaaa Jan Feb Mar Apr May Jun 8 27 3 78 1 5 16 138 0 0 0 0 0 103 0 0 0 0 0 126 0 0 0 0 0 25 0 0 0 0 0 Jul Aug Sep Oct Nov Dec 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Residential Subscribers Service Phone Only Internet Only Television Only Phone & Internet Phone & Television Internet & Television Triple Play Total Subscribers Total Phone Total Internet Total Television Jan Feb Mar Apr May Jun 30 0 0 0 0 0 0 0 0 490 0 0 0 0 86 93 51 346 305 1401 0 0 0 0 0 479 0 0 0 0 0 1234 0 0 0 0 0 788 0 0 0 0 0 Jul Aug Sep Oct Nov Dec 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 MINNESOTA PUBLIC BROADBAND ALLIANCE January 9, 2015 Mary Magnuson Blandin Foundation Grand Rapids, MN Dear Mary, Please accept my apologies for not getting this letter to you before the end of 2014. 1 had a family emergency that took me to Illinois and caused me to lose track of several things, including reporting back to Blandin on the outcome of the grant we were awarded for the feasibility study of forming an alliance of municipal broadband providers. The grant allowed us to gather legal advice and opinions and have the time to research and discuss the benefits and possible down sides of different styles of nonprofit design and we are grateful for that assistance. The decision was made by our founding members to form an unincorporated nonprofit alliance last December. A budget and a dues schedule have been put together and our meeting in January will result in the election of officers for the coming year. We are excited by the possibilities of our activities benefitting our individual communities and the prospect of helping create true Border to Border Broadband in the state of MN. Various other communities are on our prospect list for expanding the membership in 2015. A variety of other stakeholders, including the Office of Broadband Development, have been invited to attend any or all of our meetings and have affirmed their interest in participating. We've also had discussions with a variety of groups regarding the upcoming legislative session looking for areas of agreement that we can work on together. Those discussions with the MTA, MCCA, AMC and the League of Cities have been beneficial. The official name of our organization is the Minnesota Public Broadband Alliance. There was a balance of $8000 in our account mid-December with two outstanding invoices for legal services and contract services totaling close to that amount. The funds were expended solely on legal services and a contractual agreement with me to serve as an interim executive director to manage the process. The Alliance could not have been formed without the assistance of the Blandin Foundation grant you awarded to us mid -year. Thank you very much for your support and encouragement. We urge any member of the Blandin team to attend any of our meetings and Bill Coleman was at our September meeting. MINNESOTA PUBLIC BROADBAND ALLIANCE Mary, if you would like to see a complete accounting of the fund allocations over the last six months, we will be happy to have the staff at the city of Monticello forward that to you. They will continue to serve as the fiscal agent for the Alliance in 2015. Most of our meetings have been held at the Scott County offices in Shakopee. Both have generously offered their services at no cost to the Alliance and we are very lucky to have a group of energetic and intelligent community boosters forming our core group. I'm very pleased at the outcome of the exercise and am excited at the prospect of growing the organizations size and effectiveness in the next year. Thank you again for the wonderful support from the Foundation. The grant was an incredible boost to our effort. Sincerely yours, JoAnne Johnson Executive Director 1► 1x:7_1 612-229-7173 ORDINANCE NO. 480 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA AN ORDINANCE ESTABLISHING A TELECOMMUNICATIONS PUBLIC SERVICE ENTERPRISETO BE KNOWN AS FiberNet Monticello THE CITY COUNCIL OF THE CITY OF MONTICELLO, MINNESOTA, ORDAINS: SECTION 1. Title 2 of the City Code of the City of Monticello is amended by adding the following chapter. CHAPTER 9 SECTION: 2-9-1. Findings and Purpose 2-9-2. Creation, Advisory Board Established 2-9-3. Officers and Meetings 2-9-4. Functions, Powers and Duties 2-9-5: General Manager 2-9-6. Reservation of Power 2-9-1: FINDINGS AND PURPOSE Minnesota Statutes § 237.19 authorizes the City to own and operate a telephone exchange and to provide municipal telecommunications services following a referendum within the City. The City conducted the required referendum and more than the statutorily prescribed 65 percent of those voting thereon voted in favor of proceeding. Based on all information to date, the City Council hereby finds that the establishment of FiberNet Monticello is in the best interests of the City. The City Council further finds that it is in the best interests of the City to create an advisory board to guide the management of FiberNet Monticello. 2-9-2. CREATION, ADVISORY BOARD ESTABLISHED: (A) A municipal telecominunications services enterprise to be known as FiberNet Monticello is hereby created and established. FiberNet Monticello shall have an Advisory Board composed of five (5) voting members to be appointed by the Mayor and the City Council. 136893v05 (B) Two of the voting members shall be members of the City Council (one of which could be the Mayor). The terms of appointment shall coincide with their elected terms of office and appointments to replace any member whose term is expiring or otherwise vacant maybe made from any member of the Council. (C) The remaining three (3) voting members shall be appointed and shall serve staggered terms. Those initially appointed shall serve for two years, three years and four years respectively. Thereafter, all members shall be appointed for five year terms, except for any person appointed to fill a vacancy occurring prior to the expiration of the term to which his/her predecessor had been appointed shall be appointed only for the remainder of such term. (D) All voting members shall serve at the pleasure of the City Council. Vacancies shall be filled by appointment by the Mayor and the City Council. Upon the expiration of his/her term of office, the member shall continue to serve until his/her successor is appointed and qualified. (E) The City Administrator of the City of Monticello and the General Manager of FiberNet Monticello shall be non-voting members of the Advisory Board. 2-9-3: OFFICERS AND MEETINGS (A) The Advisory Board shall have the offices of President and Vice President. The President shall be the Mayor, or if the Mayor is not serving, the President shall be a member of the City Council and designated by appointment of the Mayor and the City Council. The Vice President shall be elected by the members from the remaining members. (B) The Advisory Board shall adopt bylaws with rules and procedures not inconsistent with the provisions of this ordinance as may be necessary for the proper execution and conduct of its business. (C) The Advisory Board shall meet at least monthly. Special meetings may be called by the President as needed. 2-9-4: FUNCTIONS, POWERS AND DUTIES (A) The Advisory Board shall have the powers granted to it by the City Council under this Ordinance and as otherwise delegated by action of the City Council. 136893v05 2 (B) The Advisory Board shall have the authority to provide general oversight and strategic management for the FiberNet Monticello Enterprise Fund (the Fund). The Advisory Board shall insure that the Fund meets City requirements and Minnesota Statutory requirements for financial management and reporting. (C) The Advisory Board shall have the authority to govern FiberNet Monticello within the boundaries established in the annual budget as approved by the City Council. The Advisory Board shall make an annual budget recommendation to the City Council. (D) The City Council shall make available to the Advisory Board such appropriations as it deems fit for salaries, fees, and expenses necessary in the conduct of its work. The Advisory Board shall have the authority to approve and direct the expenditure of all budgeted sums as appropriated and consistent with state law, in particular M.S. Section 412.271, Subd. 8. 2-9-5: GENERAL MANAGER (A) The City Council shall appoint a General Manager for FiberNet Monticello, and hire or assign such staff or consultants or contractors as it deems necessary for the efficient operations of FiberNet Monticello and the City. (B) The General Manager shall be responsible for the administration and management of FiberNet Monticello. (C) The General Manager shall provide reports to the Advisory Board at its regular meetings and an annual report to the City Council accurately describing the activities and financial condition of FiberNet Monticello. (D) The General Manager shall maintain contact with the City Administrator as necessary to coordinate activities. 2-9-6: RESERVATION OF POWERS (A) Except as delegated by this Ordinance, and subject to amendment of this Ordinance, the City Council reserves its rights and powers regarding FiberNet Monticello, including but not limited to the power to (1) adopt the annual budget, (2) approve capital improvements, (3) review rates and fees, (4) approve potential expansions of the service area of FiberNet Monticello, and (5) ratify hiring and firing. 13689305 SECTION 2. EFFECTIVE DATE. This ordinance shall be effective upon its passage and publication. ADOPTED by the Monticello City Council this 14th day of April, 2008. CITY OFFMMONTICELLO By: Clint Herbst, Mayor ATTEST: Jeff 0 City Administrator 136893vO5 4 Report on Proposed Governance Structure A number of important decisions are before the City in connection with the intended establishment of FiberNet Monticello as a City enterprise. One of those decisions has to do with establishment of a governance structure. I was asked to clarify the key issues the City must resolve in setting up an appropriate governance structure. I consulted with Steve Rosholt, Bond Attorney and Joel Jamnik, one of the City Attorneys. The following is a draft report. 1. Role of the City_ Council: A threshold issue was disposed of quickly: Who has ultimate authority over the enterprise? The answer is the City Council in light of the fact that the City intends to run FiberNet Monticello as an enterprise under City authority. That does not mean the Council will act as day to day manager or even general manager of the enterprise. It does mean that major decisions on contracts, overall fund expenditures, buying and selling of major assets, hiring and firing of key personnel, and the like must be reported to the City Council for their approval. 2. Role of the Management Committee: Function: The chief function of the Management Committee is be Advisory to the General Manager of FiberNet Monticello and to the City Council concerning the operations and general strategy of the enterprise. The City may wish to identify the tasks of the Management Committee more precisely at some later point. Membership: This sort of group typically has a membership of five or seven members. At a minimum two City Council members including the Mayor ought to be designated as members if the whole size is five. If the whole size of the Management Committee is seven then three City Council members including the Mayor ought to be designated as members. The remaining membership can represent other key stakeholder groups in the community. Ex Officio Membership: The General Manager and the City Administrator shall be ex officio non voting members of the Management Committee. Size: Size of the General Management Committee should balance the twin goals of flexibility in decision making with need for wider representation so that Board members will bring diverse talents as management advisors including business, technical, and financial acumen Governance Rules of the General Management Committee: The General Management Committee shall conduct its affairs following a set of by-laws to be developed and presented for approval by the City Council prior to the initial meeting of the General Management Committee. 3. Selection of the Chair of the General Management Committee: This decision should reflect the political customs of the community. If that is not dispositive, then it is recommended that the City Council choose the Chair rather than election of the Chair out of the body of the General Management Committee, at least for an initial term such as the first three or five years. 4. Role of the General Manager: General Manager's Functions: The General Manager shall carry out the contractual duties to be identified in the contract to be drawn up between the City and the General Manager. Line of Authority: It is recommended that the General Manager report directly to the City Council. It is also recommended that the General Manager shall inform the City Manager by sharing reporting documents intended for the City Council. General Manager Relation to the General Management Committee: The General Manager should be the primary staff support to the General Management Committee. 5. Compensation Issues/Job Descriptions/Rankinas: General Manager Compensation: The compensation for the key personnel for the enterprise will need to reflect market requirements for the job descriptions. At the same time job identification reflecting the point value based on state law for complexity, knowledge, skills, etc., will need to be reconciled with market requirements. It is possible to have short term deviations from the point value based on state law. 7. Organizational charts and by-laws should be developed reflecting the Council decisions on governance. CHAPTER 12B CABLE SYSTEM FRANCHISE AGREEMENT FIBERNET MONTICELLO SECTION: 8-12B-1: General Provisions 8-1213-2: Grant of Franchise 8-12B-3: System 8-1213-4: Community Services 8-12B-5: Administration Provisions 8-12B-6: Indemnification, insurance, bonds and security fund 8-1213-7: Miscellaneous Requirements 8-12B-8: Acceptance of Franchise RECITALS 1. This Cable Franchise Ordinance ("Franchise") is made and entered into by and between the City of Monticello, a municipal corporation of the State of Minnesota ("City") and the City of Monticello d/b/a FiberNet Monticello, a municipally owned public utility and public service enterprise ("FiberNet"). 2. FiberNet Monticello was created by the City to provide telecommunications services to City residents and businesses pursuant to Minnesota Statutes Chapter 237, in particular §237.19, and its activities are governed by the City Council and City Code Title 2, Chapter 9. 3. Pursuant to Minnesota Statutes Chapter 238, in particular §238.08 and City Ordinance No. 419 ("Cable Ordinance"), the City is authorized to grant and issue a non-exclusive franchise authorizing FiberNet to provide cable service and construct, operate, and maintain a cable system in the City subject to Chapter 238 to the same extent as any nonpublic cable communications system. 4. Upon evaluation of FiberNet's technical, financial, legal qualifications, completion of franchise negotiations, and as a result of a public hearing, the City finds that it is in the best interests of the City and its residents to grant and issue the Franchise to FiberNet Monticello. 5. This Franchise is nonexclusive and is intended to comply with applicable laws and regulations. Any applicable requirement established by Minn. Stat. 238.084 or other state or federal law not expressly incorporated in this Franchise shall be deemed incorporated by reference as though fully set forth herein. 6. This Franchise is not intended to grant a franchise to FiberNet on terms that are more favorable or less burdensome than those in the existing cable franchise with Charter Communications or any future franchisee. Should Charter Communications or any future MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 1 franchisee believe that any cable franchise issued by the City is more favorable or less burdensome than those in an existing franchise, that franchisee shall have the right provided by Ordinance 419 to petition the City Council for franchise amendments to relieve the franchisee of provisions making its franchise less favorable or more burdensome. Those proposals may include requests for amendments to either their franchise or this Franchise, and the City Council reserves the right to amend this ordinance or to seek to amend other franchise ordinances to comply with this standard. 8-1213-1: GENERAL PROVISIONS Section 1.1 Definitions. Unless otherwise defined herein, the terms, phrases, and words contained in this Franchise have the meaning provided in the Cable Ordinance. Terms, phrases and words contained in this Franchise that are not defined here or in the Cable Ordinance will have their normal and customary meaning. Section 1.2 Written Notice. All notices, reports, or demands required to be given in writing under this Franchise or the Cable Ordinance must be delivered personally to the General Manager of FiberNet or the City Administrator or deposited in the United States mail in a sealed envelope, with registered or certified mail postage prepaid thereon, addressed to the party to whom notice is being given, as follows: If to City: City of Monticello Attn: City Administrator 505 Walnut Avenue, Suite 1 Monticello, Minnesota 55362-8822 With copies to: Chair, Sherburne/Wright Counties Cable Communications Commission c/o City of Buffalo 212 Central Avenue Buffalo, Minnesota 55313 If to FiberNet: FiberNet Monticello Attn: General Manager 118 Sixth Street West Monticello, Minnesota 55362-8822 Such addresses may be changed by either party upon notice to the other party given as provided in this Section. 8-1213-2: GRANT OF FRANCHISE MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 2 Section 2.1 Grant. a. FiberNet is authorized to erect, construct, operate and maintain in, along, across, above, over and under the rights-of-way, now in existence and as may be created or established during the term of this Franchise any poles, wires, cable, underground conduits, manholes, and other conductors and fixtures necessary for the maintenance and operation of a Cable System in the City. Nothing in this Franchise shall be construed to prohibit FiberNet from offering any service over its Cable System that is not prohibited by federal, state or local law. b. This Franchise is granted pursuant to the Cable Ordinance. By accepting this Franchise, FiberNet agrees to be bound by the terms of the Cable Ordinance and this Franchise. In the event of any conflict between the provisions of this Franchise and the Cable Ordinance, the provisions of this Franchise shall govern. C. This Franchise shall be nonexclusive and City may grant additional franchises at any time. The City will not grant an additional franchise on terms and conditions more favorable or less burdensome than those in this Franchise. The City may impose additional terms and conditions in any additional franchise. d. In the event the City grants an additional franchise that FiberNet believes is more favorable or less burdensome than in this Franchise, FiberNet shall have a right to petition for franchise amendments to relieve FiberNet of provisions making its Franchise less favorable or more burdensome. FiberNet shall file a petition that: 1. Identifies the competitor(s); 2. Identifies the basis for FiberNet's belief that certain provisions of the additional franchise are more favorable or less burdensome than its existing Franchise; 3. Identifies the franchise provisions to be amended. Section 2.2 Franchise Term. This Franchise will be in effect for a period of fifteen (15) years from the date of acceptance by FiberNet, unless sooner renewed or revoked. Section 2.3 Service Area. a. This Franchise is granted for the corporate boundaries of the City, as it exists from time to time, subject to the density requirement of Section 2.3.b below. The City will notify FiberNet in writing in the event the City annexes any areas that FiberNet will be required to serve. b. FiberNet will extend its Cable System and offer cable service, within a reasonable time, after a request for service, to areas with a density of at least nine (9) MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 3 residential units per one-quarter (1/4) cable mile of system, as measured from the nearest Cable System trunk line or distribution cable as of the date of such request for service. Where the density is less than that specified above, FiberNet may require that persons requesting service pay a portion of the cost of the capital cost of the line extension in advance. FiberNet shall provide a free written estimate of the total cost for extension and the required payment amount within fifteen (15) days of the request for service. The charge for installation or extension for each person requesting service shall not exceed a pro rata share of the actual cost of extending the service. Subscribers shall also be responsible for any standard/non- standard installation charges to extend the Cable System from the tap to the residence. 8-12B-3: SYSTEM Section 3.1 System Capacity. FiberNet will operate a Cable System providing a minimum of at least 75 video programmed channels throughout the term of this Franchise. The Cable System must have return capability and permit "narrowcasting" as provided in Section 4.2(c) unless sufficient channels are available as specified in that Section. Section 3.2 Construction Deadline. Except for FiberNet's Cable System extension obligations pursuant to Section 2.3, system construction is substantially complete. Except as otherwise required by a Right - of Way Ordinance, FiberNet will use best efforts to complete any Cable System extension and construction of new facilities for new developments contemporaneous with installation of other utilities. The City shall provide reasonable and timely advance written notice of the location of all new developments to FiberNet. 8-12B-4. COMMUNITY SERVICES Section 4.1 Commercial Video Programming. FiberNet will provide broad categories of video programming, including news, sports and entertainment. Section 4.2 PEG Access Facilities. a. Access Channels. FiberNet must dedicate a minimum of two (2) channels for PEG Access programming. The two (2) PEG Access Channels must be cablecast on the Basic Cable Service tier. All subscribers who receive Cable Services offered on the Cable System must receive the PEG Access Channels at no additional charge. The VHF spectrum must be used for the provision of at least one (1) of the PEG Access Channels. Nothing herein shall diminish the City's rights to secure additional channels pursuant to Minn. Stat. § 238.084, Subd. 1(z), and applicable FCC regulations. MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 4 b. Responsibility for PEG Access. The City will operate, administer, and manage PEG Access programming pursuant to this Section 4.2. The City will be responsible for the channel currently used for public access programming. The City may delegate its PEG Access authority and responsibilities to the Commission. FiberNet acknowledges that the Commission may coordinate the expenditure of Franchise Fees and PEG Capital Fees by and among the Commission's member municipalities. Nothing herein shall obligate the City to make equipment or channels available for public access programming or to any particular programmer. C. Narrowcast. If in the future FiberNet serves areas outside the City, at least one (1) PEG Access Channel must permit the City to provide "narrowcast" programming of events; i.e. permits a program to be cablecast on such channel for viewing solely by City residents while residents in adjoining townships or cities served by FiberNet simultaneously view other programming on that channel. This provision may be waived by the City if FiberNet provides sufficient channels to allow all served areas to view all programmed events. d. Live Origination. FiberNet must ensure that live programming may be originated and cablecast from the public institutional sites listed in Exhibit A attached hereto provided however, that FiberNet shall only be required to pay the cost of the first one hundred and fifty (150) feet of any new system construction necessary to permit live origination at such site and shall not be required to provide end-user equipment. The City may designate additional live programming sites. The City shall pay any additional, actual construction costs prior to additional construction and shall be responsible for the provision of end-user equipment. FiberNet must ensure that the system meets the technical standards attached hereto as Exhibit B at all live origination sites. FiberNet must further ensure that the City can "narrowcast" programming originated from all of the sites designated pursuant to this paragraph unless FiberNet provides sufficient channels to allow all served areas to view all programmed events. e. PEG Access Capital Support. In addition to the requirements of Section 4.2(a) - (d) above, the City may require FiberNet to collect and remit a PEG Capital Fee of up to eighty-five cents ($.85) per subscriber, per month to support community programming. FiberNet shall remit such payments on the same schedule as the Franchise Fee. All amounts paid shall be subject to audit and recomputation and acceptance thereof does not constitute an accord that amounts paid are correct. FiberNet must be notified in writing on or before October 1St of the amount of the PEG Capital Fee to be effective on January 1' of the following year. If the City fails to provide the written notification required herein by October 1St, then the PEG Capital Fee for the following calendar year shall remain as set the previous year. FiberNet may itemize any PEG Capital Fee on subscriber's bills. Payment by FiberNet must be separate from and in addition to any Franchise Fee. The City, FiberNet and other cable franchisees shall jointly fund and sponsor a subscriber survey approximately during the fifth and tenth years of the franchises for the purpose of assessing subscriber satisfaction with PEG Access MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 5 programming and the levels of financial support that subscribers are willing to provide. Upon completion of the survey, the City and FiberNet shall meet to discuss the level of support for PEG Access programming and enter into good faith discussions regarding revisions to this Section that may be appropriate in light of the survey. f. Use of PEG Capital Fee. The City and FiberNet agree that the City will expend the PEG Capital Fees solely for capital costs (consistent with GAAP) associated with PEG Access. Historically the City has provided, on an annual basis, substantial financial support for PEG Access programming. In consideration for FiberNet's obligation to remit the PEG Capital Fee, the City agrees to provide financial support for PEG Access that is equivalent to the amount of PEG Capital Fees collected and provided to the City. By March 31St of each year, the City shall provide FiberNet with an annual report of any expenditures of the PEG Access Capital Fee to insure such fees are used for capital costs related to PEG Access. The annual report shall also demonstrate how the City fulfilled its requirement to provide matching support for PEG Access. Based on the report, FiberNet may send a written notice to the City alleging that the City failed to demonstrate that the PEG Capital Fee was used for capital or that matching PEG Access support was provided. The City shall have thirty (30) days after receipt of the written notice to provide additional information demonstrating compliance with the requirements of this Section. If FiberNet continues to allege that the City has not complied with its obligations herein, FiberNet may provide written notice of its intent to reduce and/or discontinue collecting and remitting the PEG Capital Fee. If the City disputes FiberNet's actions, it may initiate any enforcement action under the Cable Ordinance it deems appropriate. g. Access Rules. The City may implement rules governing PEG Access channels and programming. h. Parity of Obligations. The City will impose equivalent PEG Access obligations on any other franchised provider of Cable Service in the City to the extent provided by law. Section 4.3 Drops and Service to Public Buildings. a. FiberNet must provide monthly Basic Cable Service and Cable Programming Service (excluding pay -per -channel or pay -per -program) and install one (1) Drop and one (1) outlet without charge to the public institutional sites listed in Exhibit A attached hereto. The programming provided by FiberNet is not for public display. The City shall hold FiberNet harmless for any copyright, or other penalties, incurred due to improper use of free service. FiberNet shall not be required to provide converters. b. FiberNet must provide a Drop, outlet and Basic Cable Service and Cable Programming Service to such other accredited public schools or public administration buildings as the City may subsequently designate, provided MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 6 however, that FiberNet shall only be required to pay the cost of the first one hundred and fifty (150) feet of any necessary Cable System construction. The City or institution shall pay any additional actual construction cost. FiberNet will have a reasonable time from the designation of additional sites to complete extension. Additional Drops and/or outlets at institutional locations must be provided by FiberNet at the cost of FiberNet's time and material. Alternatively, institutions may add outlets at their own expense. Section 4.4 Drop Box. FiberNet must maintain a local drop box for receiving subscriber payments in the City. 8-12B-5. ADMINISTRATION PROVISIONS Section 5.1 Franchise Fee. a. FiberNet shall pay a Franchise Fee to the City in an amount equal to five percent (5%) of its gross revenues. FiberNet shall remit Franchise Fee payments to the City on a quarterly basis within 60 days of the close of the preceding calendar quarter. Payments shall be based on gross revenues generated during the preceding quarter. b. Each Franchise Fee payment must be accompanied by a report in form reasonably acceptable to City detailing the computation of the payment. All amounts paid are subject to audit and recomputation by the City, and acceptance of any payment must not be construed as an accord that the amount paid is in fact the correct amount. In accordance with Minn. Stat. § 541.05, any action to recover Franchise Fees must be commenced within six (6) years of receipt of the Franchise Fee payment or due date for such payment. C. In the event that any Franchise Fee payment or recomputed payment is not made on or before the dates specified herein, FiberNet shall pay an interest charge, computed from such due date, at the annual rate of one percent over the prime interest rate. Section 5.2 Rules of FiberNet. FiberNet may promulgate such rules, terms and conditions governing the conduct of its business provided that such rules, terms and conditions must not be in conflict with the provisions of this Franchise, the Cable Ordinance, or applicable laws or regulations. 8-12B-6. INDEMNIFICATION, INSURANCE, BONDS AND SECURITY FUND Section 6.1 Indemnification. MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 7 By acceptance of this Franchise, FiberNet agrees to indemnify, defend, and hold the City harmless in accordance with the Cable Ordinance. Section 6.2 Insurance. At the time of acceptance of this Franchise, FiberNet will file with the City a Certificate of Insurance in accordance with the Cable Ordinance. FiberNet must maintain such insurance for the entire term of this Franchise. The insurance for FiberNet may be purchased and maintained jointly with the City's other insurance coverage. Section 6.3 Security for Performance. a. Because FiberNet is a City -owned public utility and public service enterprise under the control of the City Council the Council finds it unnecessary for FiberNet to post a performance bond similar to that required of private franchisees. However, because FiberNet may be subject to regulatory requirements of the Commission and the City, it shall create and maintain at the City a regulatory compliance security fund of not less than Fifty Thousand Dollars ($50,000.00) for the benefit of the City, which fund may also be used to comply with parallel bonding requirements imposed by the other members of the Sherburne -Wright Counties Cable Communications Commission. At the time of acceptance of this Franchise, FiberNet will file with the Commission evidence of creation of such fund at the City. FiberNet must maintain the fund until this Franchise expires or is terminated, and FiberNet has liquidated all of its obligations with the City. b. The fund shall be available to the City to ensure FiberNet's faithful performance in accordance with the terms of this Franchise, the Cable Ordinance, and applicable laws and regulations. The City may draw on the fund in the event FiberNet fails to comply with any law, ordinance or regulation, or to compensate the City for any damages or loss suffered by the City as a result, and further guaranteeing payment by FiberNet of claims, liens and fees due the City which arise. In the event this Franchise is revoked or the rights hereunder relinquished or abandoned by FiberNet, the City is entitled to collect any resultant damages, costs or liabilities incurred by the City. C. The City and FiberNet acknowledge that it may be difficult or impossible to accurately quantify actual damages or losses suffered by the City due to a violation or unsatisfied obligation under this Franchise, the Cable Ordinance, or applicable laws or regulations. Such violations or unsatisfied obligations may, however, be presumed to harm the City and the public's interest. Accordingly, the City may, in its reasonable discretion, collect liquidated damages in an amount of up to Two Hundred and Fifty Dollars ($250.00) per violation of any provision of this Franchise, the Cable Ordinance, or applicable laws or regulations. Each violation may be considered a separate violation for which separate liquidated damages can be imposed. MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 8 d. In the event the City will make any claim against the fund, the City must comply with Section 14 of the Cable Ordinance governing enforcement of this Franchise. e. The City's rights herein are in addition to all other rights the City may have and the City's exercise of such rights does not constitute an exclusive remedy nor limit any other right. Section 6.4 Construction Security. a. FiberNet shall comply with Minnesota Statutes §574.26 when undertaking any construction projects or entering into any construction contracts. Any performance or payment bonds obtained shall name the City of Monticello as well as FiberNet Monticello. b. If FiberNet or any of its contractors fail to perform in accordance with the terms of this Franchise, the Cable Ordinance, and applicable laws and regulations, the City may draw on the fund established in Section 6.3. In the event the City will make any claim against the construction bond, the City must comply with Section 14 of the Cable Ordinance governing enforcement of this Franchise. The City's rights pursuant to this Section are in addition to all other rights the City may have. Any action with respect to the security fund does not constitute an exclusive remedy nor limit any other right. 8-1213-7. MISCELLANEOUS REQUIREMENTS Section 7.1 Amendment of Franchise Ordinance. FiberNet and the City may mutually agree, from time to time, to amend this Franchise. Any changes, modifications or amendments to this Franchise must be made in writing, signed by the City and FiberNet. Nothing herein is intended to expand or diminish the rights given to City under state law. The City reserves its lawful rights, including its police powers and ordinance -making authority. Section 7.2 Force Majeure. In the event FiberNet's performance of this Franchise is prevented due to a cause beyond its reasonable control, such failure to perform must be excused for the period of such inability to perform. Section 7.3 Severability. If any term, condition or provision of this Franchise or the application thereof to any person or circumstance is held, to any extent, invalid, preempted or unenforceable, the remainder and all the terms, provisions and conditions herein must, in all other respects, MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 9 continue to be effective provided the loss of the invalid, preempted or unenforceable provisions do not substantially alter the agreement between the parties. In the event a law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that the Franchise provision which had been held invalid, preempted or modified is no longer in conflict therewith, such Franchise provision will return to full force and effect and thereafter be binding upon thirty (30) days written notice to FiberNet. Section 7.4 Nonenforcement by City. FiberNet is not relieved of its obligations to comply with this Franchise or the Cable Ordinance due to any failure or delay of the City to enforce prompt compliance. The City and FiberNet may each only waive its rights by expressly so stating in writing. Section 7.5 Rights Cumulative. All of the City's and FiberNet's rights and remedies pursuant to this Franchise are in addition to and not exclusive of any and all other rights and remedies available to the City or FiberNet. Section 7.6 Work Performed by Others. All obligations of this Franchise apply to work performed by any agent, subcontractor or other person performing any work or services on behalf of FiberNet pursuant to this Franchise to the extent applicable, however, in no event will any such person obtain any rights to maintain and operate a Cable System or provide Cable Service. Section 7.7 Entire Agreement. This Franchise sets forth the entire agreement between the parties respecting the subject matter hereof. All agreements, covenants, representations, and warranties, express and implied, oral and written, of the parties with regard to the subject matter hereof are contained herein. No other agreements, covenants, representations or warranties, express or implied, oral or written, have been made by any party to another with respect to the matter of this Franchise. All prior and contemporaneous conversations, negotiations, possible and alleged agreements, representations, covenants and warranties with respect to the subject matter hereof are waived, merged herein and therein and are superseded hereby and thereby. 8-12B-8. ACCEPTANCE OF FRANCHISE Section 8.1 Publication and Effective Date. This Franchise will be effective on the date of acceptance by FiberNet. This Franchise shall be enacted and published in accordance with applicable local and Minnesota law. Section 8.2 Time for Acceptance. MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 10 a. FiberNet must accept this Franchise within sixty (60) days of enactment by the City, unless the time for acceptance is extended by the City. Acceptance by FiberNet will be deemed the grant of this Franchise for all purposes. b. Upon acceptance of this Franchise, FiberNet and City will be bound by all the terms, conditions and obligations contained herein. Section 8.3 Manner for Acceptance. FiberNet must accept this Franchise in the following manner: a. The Franchise must be fully executed and acknowledged by FiberNet and delivered to the City. b. FiberNet must also deliver any construction bond and insurance certificates required herein that have not previously been delivered, with its acceptance. Section 8.4 Failure to Accept. In the event FiberNet does not timely accept this Franchise in accordance with the requirements herein, this Franchise and all rights granted herein are null and void. MONTICELLO CITY ORDINANCE TITLE VIII/Chapter 12B/Page 11 EXHIBIT A (Live Origination and Free Service Sites) Monticello Municipal Liquor Store 545 Hwy 25 Monticello 55362 Drop Ellison Park 825 East River Street Monticello 55362 Live/Drop Swan Park 121 Mississippi Drive Monticello 55362 Live/Drop Monticello Public Library 200 6th Street west Monticello 55362 Live/Drop Xcel Ballfield Complex 2171 W. River Street Monticello 55362 Live/Drop Soccer Park 5550 School Blvd. Monticello 55362 Live/Drop Hockey Arena 1000 East Broadway Monticello 55362 Live/Drop City Hall/Community Center 505 Walnut Street Monticello 55362 Live/Drop High School 5225 School Blvd. Monticello 55362 Live/Drop MONTICELLO CITY ORDINANCE TITLE VIII/CHAPTER 12B/PAGE 12 EXHIBIT B (Technical Standards - Live Origination Sites) With respect to all sites listed in Exhibit A, the Cable System shall meet or exceed the following requirements: 1. The Cable System shall operate in conformance with the technical standards promulgated by the FCC pursuant to Title 47, Sections 76.601 to 76.617, as may be amended or modified from time to time. 2. The Cable System shall be capable of continuous 24-hour operation without signal degradation. 3. The Cable System shall be capable of operation without failure, material performance changes or signal degradation over an outdoor temperature range of - 40 degrees F to +130 degrees F and over a variation in supply voltages from 105 to 130 volts AC. 4. The Cable System will provide access channel connections up to the demarcation point, both upstream and downstream, without material signal degradation or deterioration and with signal quality equal to or better than any other channels. Material signal degradation or deterioration where any signal problem including ghosting or other audio or visual distortion or interference is apparent without special testing. FiberNet shall not be responsible for technical problems deriving from facilities or equipment located beyond the demarcation point, within the institutional site. (#514, 5110110) MONTICELLO CITY ORDINANCE TITLE VIII/CHAPTER 1213/PAGE 13 City of Monticello FiberNet Cash Position 12/31/2014 Description Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ending Cash Balance $ 204,347 $ 567,993 $ 549,725 $ 418,963 $ 322,958 $ 315,473 $ 153,922 $ 139,234 $ 102,575 $ (77,857) $ (138,107) $ 61,000 $ 25,699 Monthly Cash Change $ (29,456) $ 13,646 $ (18,268) $ (130,762) $ (96,005) $ (7,485) $ (161,551) $ (14,688) $ (36,658) $ (180,432) $ (60,250) $ (50,893) $ (35,301) YTD Cash Change $ $ 13,646 $ (4,622) $ (135,384) $ (231,389) $ (238,874) $ (400,425) $ (415,113) $ (451,772) $ (632,204) $ (692,454) $ (743,347) $ (778,648) Equip/Legal (nonoperating) $ 49,687 $ 11,573 $ 83,398 $ 177,975 $27,419 2013 year end cash balance $ 204,347 September - Cash non-operating Cash change to date $ (778,648) FiberConnect $ 163,621 Other Items (Equip/Prior Claim/Legal) $ FiberConnect (current year) $ (25,774) Equipment Transfers $ - Blandin Net (rev - exp) $ (15,000) Budgeted/Operational transfer $ 600,000 Prior franchise taxes/Cabs/other $ 55,128 Dec ending cash balance $ 25,699 Total $ 177,975 Remaining Equipment Purchases $ - Unpaid liabilities $ (11,000) October - Cash non-operating Dec ending with unpaid liabilities $ 14,699 Blandin $ 6,000 League of MN Cities $ 21,419 Total $ 27,419 Year-to-date Total Cash Use $ (778,648) Unpaid Liabilities $ (11,000) Total Cash Used and Liabilities $ (789,648) Other Items (Equip/Prior Claim/Legal) $ 350,052 YTD Cash and Liabilities - Operations $ (439,596) Accumulated City Contribution $ 5,895,301 This Draft prepared cooperatively by Brian Estrem , Wayne Oberg and Jeff O'Neill FiberNet Draft 2015 Budget to be reviewed on October 14, 2014 by the Fiber Advsory Committee Expenditures Wages and Benefits Supplies Other Services and Charges Content and ACCess Providers Revems4s Television Internet Equipment Rental Phone Late fees Mlsc Service C46s T7'al Monday Rewmu3 Total Monthly OsMdt Annual Respsirad Support If on average each household (4,843) pays $20 less per month for phone/Internet/video due to FNM In market, total annual savings would amount to: If 400 businesses saved $100/month <----Rang: High/CC Wksh Low S 46,500 $ 44,000 Reduteto one Tech 4,298 $ 4,298 49,267 $ 40,067 MnBmt Adjust (20% Estrem Rate) 64,535 $ 64,535 $ mquill I lam $ (448,611) $ (213,211) $1,162,320 $480,000 Total Consumer5evings $1,642,320 $ 47,107 $ 47,107 46,188 $ 46,188 10,587 $ 10,587 26,250 $ 26,250 1,200 $ 1,200 1,500 $ 1,500 _ 4.800 $ 4,800 5 ii7,:3i i 3% $ mquill I lam $ (448,611) $ (213,211) $1,162,320 $480,000 Total Consumer5evings $1,642,320 UpFront NEWS REEL INITIATIVE FOUNDATION HIRES The Initiative Foundation added two new staff members: Elise Ristau, fund development specialist, and IZRae Foehrenbacher, fund development assistant. STEARNS HISTORY MUSEUM APPOINTS CEO, COO Jim Davisjoined the Steams History Museum as chief executive officer. Davis retired as vice president for corporate services from CenaaCare Health. Ann Meline, deputy director for the museum since 1985, vras named drefopemting officer and manages the day -today museum operations. SULLIVANJOINS QUINLIVAN & HUGHES John A. Sullivanjrmed Qualivan & Hughes PA as an associate atmmey. He practices in the areas of civil litigation, medical malpractice defense and insurance defense. Sullivan, mised in the SC Cloud area, eamed his B.A from St john's University And his J.D. from the University of Minneson lawScbool. SCTCC, COLUMBIA GEAR RECEIVE GRANT Coltunbia Geta, in parmership with St. Cloud 1ichrdcal and Community College (SCTCC), received a $300,000 granthom the Minnesota Department of Employmentand Economic Development (DEED) to develop a curdculumfor 175 employees, including 25 apprentices and 50 new hires. Comses include: Action Selling for Sales Workers; Blueprint Reading; Machining Math and GD&T for apprentice and entrylevel machinists; and Gear Inspection & Troubleshooting for quality engineers, among oth.S. 14 p° BUSINESS CENTRAL MAGAZINE 11 JANHARYIFEBBUARY 2915 GETTING GOING Is the Customer, Always Right? `�" Maybe, but is it the right customer? By Greg Vandal JiThe customer is always right." This adage, if accepted between consultant and client, establishes a context for the business relationship. The wishes of the client seemingly become preeminent in the transaction and drive the relationship. But, what should "right" really mean? A couple of years back, I led a superintendent search for a school district some distance from here. Minnesota's Data Practices Act is quite clear about how public meetings must be conducted. The board for a private enterprise can go behind closed doors to make important decisions. A public entity, however, has to act in the full "light of day." It cannot adjourn to the shadows to take up the people's business. As this school board narrowed the candidate list down to some impressive finalists, one board member wanted to continue discussions behind closed doors. "Screw the open meeting law," the person argued. "We need to get this done Eke any other business can do, and I want to hearwhat other board members have to say without worrying about the reaction of an audience." The group was dutifully reminded about its obligation to keep everything open and legal, and that argument ultimately prevailed. But I was faced with the very real prospect that the client might decide to engage in a hiring practice that would have broken the law. I was prepared to step away from a contract had that occurred. A shrewd business owner in the professional services sector once told me a company has to be prepared to fire a customer. The successful entrepreneur argued that the customer is not only not "always right," but sometimes is so far wrong that the business relationship simply can't be sustained. Then, it is time to separate services, to walk away from the client before real damage is done. Of course, it's best if this can be discerned before a contract is written. Just El as wise customers conduct market research on potential vendors before services are engaged, a savvy professional does background work on a prospective client. The questions a consultant needs to have answered are much the same as those the customer might ask: What is the reputation of the prospective client? How have previous business relationships gone? What is the likelihood of a good fit? Are the objectives clear and attainable? Are the timelines reasonable? What is the prospect for mutual success? If the answers reveal that the business relationship somehow doesn't "feel" right, that it's likely to be filled with turmoil, then it might be best to keep shopping for clients. In the minds of some, the customer is always right. But, one has to be open to the prospect that for you, it might also be the wrong customer. Q contributor Greg Vandal is the sole proprietor of Vox Liberi, a_con'stilting business that delivers planning and project management services to clients in the public, private and nonprofit sectors. He can be reached at gregvandal® voxllbed.com.