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.