HomeMy WebLinkAbout2021/03/22 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
MARCH 22, 2021
All meetings of the St. Louis Park City Council will be conducted by telephone or other
electronic means starting March 30, 2020, and until further notice. This is in accordance with
the local emergency declaration issued by the city council, in response to the coronavirus
(COVID-19) pandemic and Governor Walz's “Stay Safe MN” executive order 20-056.
The St. Louis Park City Council will meet on March 22, 2021 at 5:20 p.m. by videoconference for
a special city council meeting. Meeting participants will meet by electronic device or telephone
rather than by being personally present at the city council's regular meeting place at 5005
Minnetonka Blvd. Visit bit.ly/slpccagendas to view the agenda and report.
Members of the public can monitor the meeting by video and audio at bit.ly/watchslpcouncil
and on local cable (Comcast SD channel 17 and HD channel 859). For audio only call
+1.312.535.8110 and use access code 372 106 61. Cisco Webex will be used to conduct
videoconference meetings of the city council, with council members and staff participating
from multiple locations.
Members of the public who want to address the city council during the special city council
meeting should call 952.562.2886. Call when the meeting starts at 5:20 p.m. and follow
instructions provided. Comments must relate to the item on this special city council meeting
agenda.
At 5:30 p.m. the city council will meet for a study session. Members of the public can monitor
the meeting by video and audio at https://bit.ly/watchslpcouncil or by calling +1.312.535.8110
and using access code 372 106 61 for audio only.
5:20 p.m. SPECIAL CITY COUNCIL MEETING
1. Call to order
1a. Roll call
2. Resolutions, ordinances, motions and discussion items
2a. Second reading - targeted residential picketing ordinance
Recommended Action: Motion to approve second reading and adopt Ordinance
amending Chapter 18, offenses and miscellaneous provisions, of the St. Louis Park City
Code related to targeted residential picketing and authorize summary publication.
3. Adjournment
Meeting of March 22, 2021
City c ouncil agenda
5:30 p.m. – STUDY SESSION
Discussion items
1. 5:30 p.m. City manager recruitment update
2. 6:30 p.m. 2021 market value overview
3. 7:30 p.m. Follow -up discussion on funding of climate action plan
4. 8:30 p.m. Future study session agenda planning and prioritization
8:35 p.m. Communications/updates (verbal)
8:40 p.m. Adjourn
Written reports
5. February 2021 monthly financial report
6. 2020 housing activity report
7. Body worn camera annual update
8. Rise on 7 affordable housing development
9. Best Cleaners conditional use permit and variance extension
10. Proposed Comcast franchise agreement
The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display
on civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website.
If you need special accommodations or have questions about the meeting, please call 952-924-2525.
Meeting: Special city council
Meeting date: March 22, 2021
Action agenda item: 2a
Executive summary
Title: Second reading - targeted residential pick eting ordinance
Recommended action: Motion to approve s econd reading and adopt Ordinance amending
Chapter 18, offenses and miscellaneous provisions, of the St. Louis Park City Code related to
targeted residential picketing and authorize summary publication.
Policy consideration: Should the city have an ordinance in place that prohibits targeted
resid ential pick eting to p rotect resid ential privacy so that all p eople can enjoy a f eeling o f w ell-
being, tranquility, and privacy in their homes?
Summary: The council discussed this matter on March 8 and March 15, 2021. On March 15 the
council approved first reading of the ordinance and set the second reading f or March 22.
Attached is the ordinance and correspondence from the city attorney that was provided to you
on March 15.
Financial or budget considerations: Not applicable
Strategic priority consideration: Not applicable.
Supporting documents: Ordinance
Correspondence from city attorney
Prepared by: Tom Harmening, city manager
City council meeting of March 22, 2021 (Item No. 2a) Page 2
Title: Second reading - targeted residential picketing ordinance
Ordinance No. ____-21
An ordinance amending C hapter 18,
offenses and miscellaneous provisions,
of the S t. Louis P ark City C ode
The City Council of the City of St. Louis Park, Minnesota, ordains:
S ection 1. Section 18-64- Targeted residential picketing of the St. Louis Park City Code is
hereby amended to read as follows:
(a) Definitions. The following words, terms and phrases, when used in this section, shall have
the meanings ascribed to them in this subsection, except where the context clearly indicates a
different meaning:
Dwelling means a building or one or more parts of a building occupied or intended to be
occupied exclusively for residence purposes, but not including rooms in motels, hotels, nursing
homes, boardinghouses, trailers, tents, cabins or trailer coaches.
Targeted residential picketing means: any picketing by one or more persons focused on
a single residential dwelling.
(1)Marching, standing, or patrolling by one or more persons directed solely at a
particular residential dwelling in a manner that adversely affects the safety,
security, or privacy of an occupant of the dwelling; or
(2)Marching, standing, or patrolling by one or more persons which prevents an
occupant of a residential dwelling from safely gaining access to or exiting from
the property on which the residential dwelling is located; or
3.Standing, marching, patrolling or picketing by one or more persons focused in
front of or adjacent to a particular residential dwelling without the consent of
that dwelling's occupants.
(b) Purpose of section. The city has an interest in the protection of residential privacy so that all
people can enjoy a feeling of well-being, tranquility, and privacy in their homes. , the well-being
and tranquility of the home, and protecting citizens from unwanted speech when they are a
captive audience within their homes. The city council finds that, without resorting to targeted
residential picketing, ample opportunities exist for those otherwise engaged in targeted
residential picketing to exercise constitutionally protected freedoms of speech and expression.
(c) Prohibited activity. No person shall engage in targeted residential picketing within the city.
(d) Penalty. Every person convicted of a violation of any provision of this section shall be guilty
of a misdemeanor.
City council meeting of March 22, 2021 (Item No. 2a) Page 3
Title: Second reading - targeted residential picketing ordinance
(e) Severability. Should any section, subdivision, clause or other provision of this Ordinance be
held to be invalid by any court of competent jurisdiction, such decision shall not affect the
validity of the Ordinance as a whole, or in any part thereof, other than the part held to be
invalid.
Section 2. This ordinance shall be effective immediately upon its passage and
publication.
Reviewed for administration: Adopted by the City Council March 22, 2021
Thomas K. Harmening, city manager Jake Spano, mayor
Attest: Approved as to form and execution:
Melissa Kennedy, city clerk Soren Mattick, city attorney
City council meeting of March 22, 2021 (Item No. 2a) Page 4
Title: Second reading - targeted residential picketing ordinance
M E M O R A N D U M
TO: ST. LOUIS PARK CITY COUNCIL
FROM: CITY ATTORNEY SOREN MATTICK
DATE: MARCH 18, 2021
RE: RESIDENTIAL PICKETING
This memorandum outlines the relevant caselaw and state law regarding targeted residential
picketing and a city’s ability to regulate or ban such activity. Targeted residential picketing often
is defined as any picketing, marching, standing, or patrolling focused or directed at a single
residential dwelling.
Caselaw
The First Amendment jurisprudence on this issue is clear: municipalities may prohibit targeted
residential picketing. Public streets and sidewalks are considered a public forum for the First
Amendment and any restriction on free speech in a public forum must be very limited. Boos v.
Barry, 485 U.S. 312, 318 (1988). A U.S. Supreme Court case Frisby v. Schultz upheld a town’s
ordinance banning such picketing even though the ban directly implicates the First Amendment.
487 U.S. 474 (1988). Frisby was applied to a Minnesota township’s prohibition on targeted
residential picketing in State v. Castellano , 506 N.W.2d 641 (Minn. App. 1993)(published). In
both Frisby and Castellano the prohibitions on targeted residential picketing were upheld.
Both courts concluded that a government may enact regulations around targeted residential
picketing so long as the regulation is narrowly tailored to advance a significant government
interest through specific time, place, and manner restrictions. Also, the regulation must be
content neutral and there must remain ample alternative channels of communication.
In both cases, the courts recognized that these ordinances seek to protect a significant
government interest which is to preserve the peace and privacy of homes. Further, the ordinances
were narrowly tailored to only advance that significant government interest and not quell other
kinds of speech. The court in Castellano notes that even a complete prohibition on an activity
can be narrowly tailored if the activity within the scope of the ordinance is appropriately
targeted. By focusing on individual residences and the particular activity of picketing, the ban,
although complete, is still narrowly tailored to that conduct.
The ordinances are content neutral because there is no reference to the content of the regulated
speech. This ordinance would apply evenly-handedly to any picketing no matter the goals of
those persons picketing. Further, these ordinances allow other meaningful alternative channels of
communication such as marching through a neighborhood or going door-to -door spreading their
message.
Meeting: Study session
Meeting date: March 22, 2021
Discussion item : 1
Executive summary
Title: City manager recruitment update
Recommended action: City council to provide human resources with feedback on the draft
position profile and next steps in recruitment process.
Policy consideration: Does the draft position profile accurately reflect council’s priorities and
desired qualifications for the next city manager, and is council comfortable with the
recommended tentative process and timeline?
Summary: At the Feb. 22, 2021 study session, council directed staff to work with GovHR USA as
a consultant to assist with the recruitment process for a new city manager. Consultants
Charlene Stevens and Carmen Davis have collected feedback and have prepared a draft position
profile for council’s review. The draft profile is text only, and photos and final marketing polish
will be added after content is finalized.
Council is asked to provide feedback specifically on the two sections (in italics ) titled
“Expectations and Priorities” and “Candidate Qualification Criteria” so that the consultant can
ensure that council’s desired priorities and qualifications for the ideal candidate are captured.
Supporting documents: Discussion
Draft position profile text
Prepared by: Ali Timpone, HR manager
Reviewed by: Nancy Deno, deputy city manager/HR director
Approve d by: Tom Harmening, city manager
Study session meeting of March 22, 2021 (Item No. 1) Page 2
Title: City manager recruitment update
Discussion
Background: Charlene Stevens and Carmen Davis, executive search consultants from GovHR
USA, have collected feedback from staff, council and external community stakeholders to
prepare the draft position profile text (attached). This draft is text only. Photos and final
marketing polish will be provided to the document after text and content is finalized.
The profile is long and contains a lot of information about the city’s structure, demographics,
and connections with stakeholder groups. Council is asked to provide feedback specifically on
the two sections (in italics ) titled “Expectations and Priorities” and “Candidate Qualification
Criteria” so that the consultant can ensure that council’s desired priorities and qualifications for
the ideal candidate are captured. Specific wordsmithing of the document is not encouraged,
but instead a high-level discussion is needed so that these two sections are accurately
identifying the overall themes council wants to convey to potential candidates.
Consultants and staff will also explain the recommended tentative recruiting process which will
include:
•Advertising/recruiting - March 23 – April 23, 2021.
•Consultant initial screening/review - early May.
•May 17 Special study session - Council to review top candidates (10-15) as recommended by
consultant and narrow to semi-finalists (4-6) or finalists (2-3). Note: as this will be done at a
public meeting and candidate names are not public until deemed a finalist, our consultant
will assist in masking candidate identities and council will refer to candidates as “Candidate
A, Candidate B”, etc. Consultant will provide an evaluation tool and guide council through
the screening process.
•May 24 – Semi-finalist virtual interviews, if needed. Note: if candidates agree to interview,
their names will become public when virtual interviews happen during an open meeting.
This may be a deterrent to some candidates who do not want their names public before
they are finalists.
•June 4 (Friday) – A ll day panel interviews for finalists with directors and other key staff, may
include city tour and meet and greet events as needed.
•June 5 (Saturday) – Panel interviews for finalists with council (open meeting); will include
discussion time .
•June 7 Special study session (if needed) – Council to discuss interviews and make decision
on top candidate. Consultant/HR/City attorney will work with selected candidate on
contract details.
•June 21 – Council to approve contract with new city manager.
Next steps: Consultants and staff will use council feedback to finalize the position profile and
begin recruiting for the next city manager.
Study session meeting of March 22, 2021 (Item No. 1) Page 3
Title: City manager recruitment update
ST. LOUIS PARK – CITY MANAGER PROFILE
DRAFT
THE COMMUNITY
The City of St. Louis Park is a progressive, thriving, vibrant first-ring community located
immediately west of Minneapolis, just five miles from downtown. St. Louis Park has a
diversified economic base with more than 41,000 jobs and a healthy mix of new and traditional
housing. St. Louis Park Public Schools, named a National School of Excellence , features
International Baccalaureate programs and a Spanish immersion curriculum. It is regularly
recognized for innovative programs and initiatives, including raising graduation rates and
closing racial achievement gaps. The city and school district have a strong partnership and
history of collaboration. The community is also served by highly regarded private schools.
St. Louis Park is a city of choice, offering a wide variety of parks and recreation programming to
people of all ages. The city contains numerous parks and trails as well as connections to area
regional trails and amenities, providing recreation for all ages and seasons. The city owns and
operates the St. Louis Park Rec Center which features an outdoor aquatic park, two indoor ice
arenas, meeting and banquet facilities and the ROC (Recreation Outdoor Center), a recently
constructed multi-use outdoor recre ation facility. St. Louis Park is committed to promoting and
integrating arts, culture and community aesthetics in all city initiatives. The City of St. Louis
Park and St. Louis Park Friends of the Arts have a collaborative relationship to actively celebrate
and promote public art throughout the community.
Residential areas comprise the largest portion of the community and the city offers a range of
housing choices. The city is neighborhood-centric with each neighborhood defined by a unique
and distinct feel and appearance. Many of the neighborhoods have organized neighborhood
associations that build community connections and enhance the overall quality of life for the
community. St. Louis Park is known for community engagement and outreach. The city actively
engages and partners with neighborhood associations and community residents to develop
priorities and plans for the community, such as the city’s recent effort, Vision St. Louis Park or
Vision 3.0.
The community is also home to retail, restaurants, medical facilities, corporations and family -
owned businesses. Over the past decade, the city has seen more than $1 billion of private
sector investment and this trend is expected to continue. St. Louis Park is home to Excelsior &
Grand, a national award-winning mixed -use project, along with the new Shops at West End, a
commercial office and residential redevelopment project. Southwest Light Rail Transit will
include three new stations in St. Louis Park and has already sparked significant new
opportunities for growth and development, a trend that is expected to continue.
St. Louis Park is rich in cultural, religious and ethnic diversity with more than 25 places of
worship including the Thai Buddhist Center and several synagogues to serve the well-established
Jewish community. Russian is the second most common language spoken, after English.
As the city and region experience demographic changes, the City of St. Louis Park is deeply
committed to ensuring that all municipal programs and services are provided equitably to all,
irrespective of race, religion, ethnicity and other distin guishing factors to further the community’s
potential and economic vitality. The leadership of St. Louis Park, including the mayor and city
Study session meeting of March 22, 2021 (Item No. 1 ) Page 4
Title: City manager recruitment update
council, have been active participants in the Government Alliance on Race and Equity and have
identified racial equity and inclusion as a strategic priority. The city is working to:
• Create pipelines and opportunities for communities of color and indigenous people to be
part of city leadership roles.
• Invest in small businesses and services owned by people of color and indigenous people.
• Expand racial equity as an ongoing discussion within all areas of city businesses.
• Build awareness and a learning environment where consequences and unintentional
impacts of our work and decisions are addressed.
The City of St. Louis Park is a forward thinking and acting community. Residents, businesses and
visitors experience a high level of service, responsiveness and community engagement which
make St. Louis Park a community of choice for all.
DEMOGRAPHICS/GEN ERAL INFORMATION
Population: 48,662
Square miles: 10.64
Resident demographics by race:
White or Caucasian: 83.3%
Black or African American: 7.5%
Hispanic or Latino: 4.3%
Two or more races: 3.1%
Asian 3.8%
American Indian or Alaska Native: 0.5%
Native Hawaiian or Other Pacific Islander: 0.1%
Median home value (owner occupied): $271,600
Median household income: $80,627
THE ORGANIZATION AND THE CITY MANAGER POSITION
St. Louis Park operates under a council-manager form of government established by home rule
charter. The mayor and six (two at large and four ward) city council members are elected to
four-year terms. The city has adopted the Carver governance model as a guide to its
operations. The city manager reports to the mayor and city council and is responsible for
ensuring that council priorities are enacted and oversees all daily operations.
City services are organized into eight departments – administrative services, community
development, engineering, fire, building and energy, information resources, police and
operations and recreation. All department directors are appointed by and report to the city
manager. The city has a general fund budget of $42 million and a AAA bond rating, with 287
full-time employees. Five bargaining units cover employees in police, fire, public works and
dispatch, representing about half of the city employees.
The city is a high performing organization with a culture of collaboration and innovation. City
staff are long serving, professional and highly regarded, with many seen as leaders in the
region. The current city manager is retiring after 17 years as city manager and a total of 26
years with the City of St. Louis Park. This length of service to the city is not uncommon.
Study session meeting of March 22, 2021 (Item No. 1 ) Page 5
Title: City manager recruitment update
The City of St. Louis Park has adopted the following culture statement and workplace values:
We believe our public services makes a difference.
• Responsive: We are highly responsive to the needs of the community and to one another.
• Collaborative: We are collaborative with one another as a team and the community as a
partner.
• Quality: We are committed to providing programs and services of the highest quality that
fulfill the needs o f residents in an innovative, effective and respectful way.
EXPECTATIONS AND PRIORITIES
In May 2018, the city council adopted strategic priorities in five areas: racial equity and
inclusion, environmental stewardship, transportation, housing and community engagement.
Thus, the next city manager can expect to work with the leadership team and elected officials
on a wide variety of projects and initiatives including but not limited to the following:
• Racial equity and inclusion: The city manager will be proactive in leading and supporting the
city’s efforts to be a more inclusive organization and to recruit and retain a representative
workforce.
• Community partnerships: The city manager will continue to maintain and strengthen the
city’s community partnerships and develop positive relationships with community
stakeholders.
• Succession planning and development: The city manager will assess opportunities for
leadership development to ensure that a pipeline of representative talent is developed in the
organization.
• Pandemic recovery: The next city manager will lead efforts to assess the organizational,
social and economic impacts of the COVID-19 pandemic and develop strategies for an
equitable recovery.
• Climate action: In 2018, the city council passed a Climate Action Plan with an ambitious goal
of achieving carbon neutrality by 2040. The city manager will guide efforts to implement
these goals and identify sustainable funding.
• Southwest Light Rail Transit: Southwest Light Rail Transit will bring opportunities for
redevelopment and investment. The city manager will ensure that St. Louis Park is proactive
in assessing and planning for the opportunities and able to adapt plans to project delays or
changes.
• Connect the Park: The city is in the midst of a ten-year plan to add more sidewalks, bike
lanes and bikeways through the community. Providing a variety of options for people to
make their way around the city comfortably, safely and reliably is a priority for the
community.
• Vision 3.0: The cit y undertook a community-wide visioning effort that identified
recommendations for the future of St. Louis Park. Ensuring that these recommendations and
visions are planned for, financed and ultimately implemented will be an expectation for the
next city manager.
• Budget: Better aligning the city’s budget with its strategic priorities, such as through
priority -based budgeting, will be an opportunity for the next city manager.
• Affordable housing: The city values neighborhood-oriented development that also offers a
broad range of housing options for residents.
Study session meeting of March 22, 2021 (Item No. 1 ) Page 6
Title: City manager recruitment update
CANDIDATE QUALIFICATION CRITERIA
The city is seeking highly professional candidates who take a progressive and collaborative
approach to leadership. The following education, experience, management and leadership
criteria have been identified by the City of St. Louis Park as important skills and abilities for the
successful candidate to possess and demonstrate.
Candidate requirements
• Bachelor’s degree in public administration or closely related field. Ideally, candidates will
have a master’s degree in public administration.
• Five years of progressive leadership experience in high level management positions in a
governmental or similar organization. Ideally candidates will have seven to ten years of
experience.
• Strong finance and budgeting skills in a public or nonprofit setting.
• Excellent written and verbal communication skills.
• Demonstrated experience and enthusiasm for community relations and community
engagement.
• Demonstrated cultural competence and experience supporting and advancing racial equity
and inclusion.
The ideal candidate will be:
• Innovative, progressive and knowledgeable in public sector best practices.
• Adaptable and flexible, able to identify emerging trends and opportunities and shift courses
when necessary.
• A highly collaborative leader with a communicative, team-oriented and approachable
management style.
• Able to build and maintain strong partnerships and relationships with diverse stakeholders
and build consensus.
• A good listener with a high level of interpersonal awareness.
• A champion and advocate for initiatives, programs and strategies that improve racial equity
in the community and organization.
• High ly responsive to community concerns, needs and inquiries.
• Knowledgeable in land use planning, community and economic development, human
resources, public works and essential public safety services.
COMPENSATION AND BENEFITS
The starting salary range for the city manager is $176,000 - $186,720 DOQ. The City of St. Louis
Park has a waiver from the State of Minnesota salary cap requirements for position . Additional
compensation above the 2021 salary cap waiver of $186,720 may be provided as PTO. Contributions
to the MN Public Employers Retirement Account are not subject to the salary cap provisions.
HOW TO APPLY
Interested candidates should apply by April 23, 2021, to Charlene Stevens, senior vice
president, GovHR USA and/or Carmen Davis, vice president, GovHR USA. Finalist interviews
with the mayor and council are expected to be held in early June with a desired start date for
the new city manager of late July or early August 2021. Apply online at www.GovHRjobs.com.
Questions may also be directed to Charlene Stevens or Carmen Davis. The City of St. Louis Park
is an EOE employer.
Meeting: Study session
Meeting date: March 22, 2021
Discussion item : 2
Executive summary
Title: 2021 market value overview
Recommended action: No action needed. This summary report is provided for informational
purposes to update Council on the local real estate market dynamics and preparing for the Local
Board of Appeal and Equalization process that begins in April.
Policy consideration: None at this time.
Summary: The assessed market valuation and classification for each property determines their
individual tax capacity and thus the overall tax capacity of the community. In addition to fiscal
budgeting and property tax implications, the composition of value and trending are important for
Council to understand as they focus on overall governance of the community.
This review is being made to give the Council additional information on how the community’s real
estate is reacting to the significant evolution of the housing stock (single-family, condo,
cooperatives, townhomes and apartment complexes), market performance trends for
commercial-industrial space, thoughts on the current market cycle, and the foundation to look
forward.
Pandemic guidance: This overview is reflective of the assessment as of January 2nd with a
reminder that in the equitable sense all adjustments are derived from the preceding year market
activity. Events occurring during 2020 have been decidedly uneven in terms of real estate values
and their outlook.
The St. Louis Park Local Board of Appeal and Equalization convenes its organizational meeting on
Monday April 12, 2021 with the follow -up meeting tentatively scheduled for April 26.
Financial or budget considerations: Not applicable.
Strategic priority consideration: Not applicable.
Supporting documents: Discussion
Prepared by: Cory Bultema, city assessor
Reviewed by: Melanie Schmitt, chief financial officer
Approved by: Tom Harmening, city manager
Study session meeting of March 22, 2021 (Item No. 2) Page 2
Title: 2021 market value overview
Discussion
Overview of the Minnesota Property Tax System
Minnesota law establishes a specific process and timeline for the entire property tax system,
including the assessment of property. The system is summarized as follows:
1.A ll real property is valued annually at fee simple market value and classified according to
actual use. The owners are notified, generally in March, with informal and multiple formal
options for discussion and appeal.
2.State law defines how the value is translated into tax capacity annually via class rate
structures, programs, exclusions and credits (e.g. blind, disabled, homestead, veteran
exclusion, low -income rental, agricultural et al). These refinements are adminis tratively
maintained.
3.Budgets for each taxing jurisdiction are set annually. Funding sources include the property tax
levy, voter approved market value referendums, bonding, special assessments, user fees,
grants and programs in a variety of operational sources which vary among jurisdictions.
4.In Minnesota, property taxes are a levied budget. The property tax budget levied in each
jurisdiction is divided by the total tax capacity of that unique area (e.g. city, county, school
district, met council et al). The result is the respective total levy extension multiplier (rate).
The multipliers are applied to each individual property in calculating the property taxes in the
year following the assessment and setting of the budget. It is essential to understand that the
property tax “rate” is simply a math equation and not a full reflection of all revenue sources,
tax base composition, service level, efficiency or performance.
The Assessing function deals primarily with the first two steps which often entails explaining the
basic system outline to taxpayers/owners. As noted above, the process begins with measurement
of market activity as staff renders an opinion of market value and classification annually for
17,000+ parcels in St. Louis Park as of Jan uary 2 each year. The assessment must comply with
standards established by the Minnesota Department of Revenue, Minnesota statutes and with
review/approval by the Hennepin County Assessor’s Office.
Market value is defined in Minnesota Statute 272.03 subd 8 as “the usual selling price at the place
where the property to which the term is applied shall be at the time of assessment; being the
price which could be obtained at a private sale or an auction sale, if it is determined by the
assessor that the price from the auction sale represents an arm's-length transaction. The price
obtained at a forced sale shall not be considered.”
C lassification of the property use is also defined by Minnesota statute. The rationale for this
requirement is that the Minnesota property tax system applies differing classification rates in
determining how the value is translated into tax capacity. The classification system greatly favors
residential property types (single -family, condo, townhome, apartments) versus business property
types (commercial and industrial). This differential is further affected by specific programs and
laws such as fiscal disparities and state-wide levies.
Study session meeting of March 22, 2021 (Item No. 2 ) Page 3
Title: 2021 market value overview
The Assessment Process
The purpose of the assessment is to annually render an accurate and equitable opinion of market
value of each parcel of property. Doing so requires current information about the properties
being assessed and the local real estate market. In addition to the economic market forces at
work, the individual property location, use and physical characteristics play a significant role in the
valuation.
The St. Louis Park Assessing division maintains a record of every property in the city including its
size, location, physical characteristics and condition. As there are 17,000+ parcels in the city, it is
virtually impossible to have complete knowledge of each property, which may or may not sell in a
given year.
The Minnesota property tax system therefore requires periodic inspections. The current cycle of
inspection is on a five -year rotating schedule (known as the quintile) which may be altered due to
physical change of the property due to new construction, renovations, additions and damage. The
goal of the periodic and interim inspection process is to assess the characteristics and
corresponding market value of each property as closely as possible versus the property’s
competitive position. Due to the pandemic, staff did not conduct interior inspection for 2020 and
will re -commence inspections in mid-2021 presuming health restrictions are lifted.
It is important to know that the initial valuation process for residential properties in the State of
Minnesota is based on mass appraisal. The valuations are modeled by a computer assisted mass
appraisal (CAMA) methodology. To summarize, the physical characteristics for each property are
maintained in a large database which recalibrates the individual valuations based upon the
location, style and physical characteristics for each property. While often viewed as a
mathematical equation to be manipulated, a truly functional CAMA system allows focused
modeling on properties with similar marketability. The purpose of modeling is to fashion a mirror
image of market performance based on properties that have sold during the comparison time
period (fact-based modeling).
Minnesota requires almost all sales to be recorded in an electronic Certificate of Real Estate Value
(e-CRV) data system. In all cases, the sales information is scrutinized and qualified. Initial clerical
screening occurs at the city and county level. The sale information is then frequently augmented
with more detail from a variety of professional data services and staff may follow -up with direct
buyer/seller verifications and re -inspections in the case where the sale indicates that we may have
imperfect information.
Evidence suggesting anything but an arms-length transaction (a forced sale, foreclosure, a sale to a
relative, etc.) results in the sales information being excluded from study. This is important as the
market information constitutes the measurable database for the statistical comparisons necessary
to make the property assessment.
The mass appraisal process is different from the individual appraisal system used by banks,
mortgage companies and others. Mass appraisal is a modeling exercise using large groups of sales
to review competitively similar groups of properties. The individu al appraisal process is comparing
one subject property with a limited number of similar competing properties. In the appeal
process, assessing staff looks to both the mass valuation models and a current individual appraisal
analysis for further review.
Study session meeting of March 22, 2021 (Item No. 2 ) Page 4
Title: 2021 market value overview
Big Picture of the Residential Market – Realtor Perspective
Before discussion of the 2021 assessment, we want to provide a big picture overview from the
perspective of Realtors. The broad spectrum of owner based residential real estate is often
carried in news media and the industry does comprise a significant variable in local, regional and
the national economy. The following chart is an aggregate of single -family homes, condos and
townhomes from 2012 through 2020 on an annual basis. This provides a comparative reference
for St. Louis Park and our immediate neighbors through the last decade.
Historic Median Sale Price – Aggregate of Single -Family Homes, Condos and Townhomes
2012 2013 2014 2015 2016 2017 2018 2019 2020
St. Louis Park 198,950 219,000 230,000 239,000 245,000 264,663 287,000 305,000 327,750
Edina 349,000 351,000 380,000 397,000 435,005 460,000 450,000 473,606 520,000
Golden Valley 218,000 247,700 248,700 264,900 290,275 312,750 309,950 343,000 367,450
Hopkins 160,500 181,500 182,000 213,500 215,000 218,650 250,000 259,950 288,000
Minnetonka 255,400 280,000 273,984 300,000 307,350 335,000 347,500 358,250 358,250
Source: Minneapolis Association of Realtors Sales Data (MAAR)
In contemplating the historical figures above, the primary owner-based housing options are
included. This aggregate price structure gives an interesting but incomplete perspective for each
community. The variation from year-to-year depends on which marke t segment has more sales as
well as the volume of sales with new construction/major renovations. The chart below breaks out
the dominant mix of options available and their sale performance in the past year.
Annual 2020 Market Performance: Sale Volume – Median Sale Price – Days on Market
Single-Family Condominiums Townhomes
# Median Days on # Median Days on # Median Days on
Sales Sale Price Market Sales Sale Price Market Sales Sale Price Market
St. Louis Park 768 353,500 12 191 163,000 25 87 229,000 19
Edina 677 642,500 31 273 190,000 31 53 425,000 20
Golden Valley 338 395,001 13 28 242,000 24 57 242,750 21
Hopkins 116 340,000 12 50 112,698 19 46 210,000 14
Minnetonka 673 457,000 19 162 200,000 25 158 284,000 22
Source: Minneapolis Association of Realtors Sales Data (MAAR)
Several facts in the above table are notable. First and often surprising to some is that our annual
transaction volume is generally high in terms of turnover rate. This is due in part to our pricing
structure, the housing options available, the mix of options available, and the balance between
single -family, condo and townhome stock. The most significant fact in the table above, however, is
timing of market exposure (Days on Market). All of the local communities are clearly showing
extremely short exposure times which has continued over multiple years. The move to a seller’s
market has been particularly emphasized in recent years from the realtor perspective. While prior
value appreciation has been predominantly in the lower priced brackets, market activity in 2020 was
appreciating throughout the price points. How that supply/demand equation is influenced by the
general economy, local competition, interest rates and household income is an annual question.
Study session meeting of March 22, 2021 (Item No. 2 ) Page 5
Title: 2021 market value overview
Summary of the St. Louis Park 2021 Assessment Roll
The Notice of Valuation and Classification commence mailing in March of each year. Each notice
reflects the property value and classification for a two-year period with the format as required by
the MN Department of Revenue. As of January 2, 2021, the total valuation of the city stands at
$8.55 billion versus $8.13 billion in 2020 and $7.73 billion for 2019. Further understanding of the
value composition and year-over-year trending is explored in the following chart.
Assessed Market Value Change for Dominant Sectors (Comparing 2021 to 2020 Assessment)
Single -Family Residential + 6.8% Market Basis versus + 7.8% with Improvements
Condominium + 1.7% Market Basis versus + 1.7% with Improvements
Townhomes + 0.4% Market Basis vers us + 0.4% with Improvements
Apartments + 2.3% Market Basis versus + 3.9% with Improvements
Commercial - 1.6% Market Basis versus + 2.6% with Improvements
Industrial + 3.4% Market Basis versus + 3.6% with Improvements
St. Louis Park Total + 3.5% Market Based versus + 5.1% Gross Change
Source : St. Louis Park Assessing Office. The “total” line is subject to slight refinement (0.3% to 0.5% generally) as the
state assessed rail and utility values are assumed and not available at report writing.
The market driven appreciation reflects a roughly apple-to-apple comparison. This measure is
inherently the primary focus for the mass appraisal methodology reflected by review of
transactions. There are also factors relating to use change, divisions and exemption changes.
Gross change reflects the total valuation movement which includes improvement values arising from
new construction, additions, renovations and use repositioning. This metric reflects the full scale of
economic activity as assessed and as measured by tax capacity. Improvement values were very
strong for the 2021 assessment which mitigates the impact of the uneven market forces.
Each of the above categories will be explained at further length in the following summary with
reminder that that an assessment is fashioning a mirror image of the market. It has included the
traditional sales review, extensive qualification review, on-market listings at multiple points
throughout the year, accessing listing data, income -expense relationships and would normally
include quintile and renovation based inspections (temporarily on hold until health guidance
directives change).
We begin our review of the overall residential sector by breaking it down into the three dominant
categories: low density (single -family homes); mid-to-high density ownership based (condos and
townhomes) and apartment units.
Single f amily homes: Approximately one -half of the total housing units are single family homes.
The city of St. Louis Park is broken down into 35 distinct neighborhoods which are configured to
local history rather than cohesive competitive influences. Of the 32 neighborhoods with single -
family properties, performance was mixed as you will see in the summary data table following this
narrative.
The following is a breakdown of the most recent study period (the array is from lowest to highest,
5 brackets with median of each). The purpose of presenting this array is to provide the reader
with insight as to market niches and the bell curve shape of the city’s single-family housing stock.
The sales below are time adjusted per MN Department of Revenue standards.
Study session meeting of March 22, 2021 (Item No. 2 ) Page 6
Title: 2021 market value overview
Quantile Array - Time Adjusted Price
Low High Count Q Median
122,500 285,000 121 251,120
285,070 320,000 121 303,250
320,000 360,000 121 340,000
360,000 436,000 121 383,150
437,500 2,460,000 120 539,750
Source: St. Louis Park Assessing Office
Study Period as 10-01-2019 through 09-30-2020
As can be seen above, the bulk of sales and housing stock values are in an approximate range of
285,000 to 436,000 in St. Louis Park. The majority of market advance, for the first time in several
years, was predominantly in these middle brackets which were in the 7.0% to 8.4% range. The
lowest bracket slowed its appreciation rate to 4.9% while the upper bracket ranged from 2% to
8%... both of which are distinct from prior years where the low-end stock was advancing at 10%+
and the upper bracket was nigh flat. The city’s median market value was at 306,400 for 2020 and
is at 330,250 for the 2021 assessment which is a 7.8% increase.
Condominiums: There are 46 distinct condominium complexes in the community. The complexes
are a decidedly diverse stock in terms of structural vintage, design format (apartment conversions,
row -house, lo-rise, hi-rise and most everything in between).
As noted in prior years, condos tend to be considerably more volatile year-over-year. This is
generally due to four major factors: condos tend to have an in-complex sub-market which can
swing quickly; the complexes compete locally and more readily into nearby cities; perceptions of
value differ between the owner-occupant buyer versus the investor/rental buyer; and sale pricing
can be affected in a significant manner by association assessments.
This complexity and variety of market options has continued with the 2021 assessment being
relatively flat in the aggregate sense. The city-wide median value was at 171,6000 for 2020 and is
at 174,300 for the 2021 assessment which is an increase of 1.6%.
Townhomes: There are 19 distinct complexes in the community. Just under one-half of them are
relatively small with fewer than 20 units. The other half are predominantly in the 20-50 unit count
bracket with three larger complexes. In general, the market forces at play in this property type are
similar to that of the condos with several mitigating factors. They include a higher average unit
value which is more consistent in terms of value consistency. It is also our perception that the
physical designs tend to be less problematic while the rate of distressed transactions and on-
market listings have tended to be less dramatic. The city-wide median market value for this stock
advance d from 211,200 in 2020 to 222,100 for the 2021 assessment which is a 5.2% increase.
The following charts provide additional overview for the 2021 assessment. The first page reflects
the single -family neighborhoods over the past five years. The next two pages provide the complex
based breakdown of the condos and townhomes also over five years. Both charts include a parcel
count reference and median market value which allows insight and perspective of the local
housing market over a five-year tracking period.
Study session meeting of March 22, 2021 (Item No. 2 ) Page 7
Title: 2021 market value overview
St. Louis Park -- Single Family Residential Properties
Historical Change of Assessed Market Values (Quintile Cycle)
Year of Assessment 2017 2018 2019 2020 2021
a. Median Assessed Value: 254,200 274,900 297,800 306,400 330,250
b. City-Wide Static Change: 5.0% 6.9% 6.7% 1.3% 7.8%
# Neighborhood Reference 2017 2018 2019 2020 2021 Parcels Median
1 Shelard Park N/A N/A N/A N/A N/A 0 N/A
2 Kilmer 8.3% 6.4% 8.2% 3.9% 6.8% 243 284,700
3 Crestview 6.9% 0.2% 4.4% 2.7% 10.7% 68 449,350
4 Westwood Hills 4.9% 11.6% 0.6% 2.0% 3.7% 292 474,150
5 Cedar Manor 7.5% 7.9% 8.5% -0.7% 12.0% 573 329,400
6 Northside (x) Willow Park 10.4% 12.2% 6.1% -4.1% 7.8% 303 324,700
7 Pennsylvania Park 5.4% 0.0% 4.2% 9.2% 7.8% 304 317,500
8 Eliot 7.9% 6.9% 8.2% -2.2% 13.0% 510 305,000
9 Blackstone 1.5% 4.2% 9.5% 8.1% 13.9% 95 262,900
10 Cedarhurst 1.3% 4.2% 18.3% 3.8% 7.0% 48 295,000
11 Eliot View 6.8% 8.5% 7.0% 5.1% 11.1% 165 315,800
12 Cobblecrest 2.9% 7.2% 10.2% 0.9% 7.9% 382 368,100
13 Minnehaha 0.6% 4.9% 7.8% 2.2% 4.0% 129 428,600
14 Amhurst N/A N/A N/A N/A N/A 0 N/A
15 Aquila 4.5% 10.7% 5.3% 5.0% 12.0% 504 280,850
16 Oak Hill 7.5% 6.8% 11.0% 3.5% 10.3% 638 307,600
17 Texa Tonka 9.6% 7.8% 7.4% 1.9% 5.1% 385 275,700
18 Bronx Park 3.4% 7.2% 6.9% 4.3% 7.8% 992 308,200
19 Lenox 5.4% 8.1% 7.5% 2.3% 10.0% 831 308,900
20 Sorenson 2.4% 11.5% 8.1% 2.0% 3.6% 451 315,200
21 Birchwood 3.7% 11.5% 7.0% 2.8% 6.7% 649 329,100
22 Lake Forest 0.7% 5.9% 3.3% -3.1% 3.7% 196 648,500
23 Fern Hill 2.9% 5.2% 4.4% 0.9% 6.1% 962 464,000
24 Triangle 7.0% 5.7% 10.3% 4.5% 6.7% 108 294,600
25 Wolfe Park 5.1% 10.5% 3.8% 5.4% 6.1% 16 311,400
26 Minikada Oaks 11.1% 0.9% 2.3% -1.6% 10.2% 76 441,100
27 Minikada Vista 5.4% 3.9% 5.1% -2.5% 7.9% 798 490,800
28 Browndale 4.2% 6.2% 7.9% 1.7% 5.5% 549 461,700
29 Brookside 9.2% 7.6% 6.1% -2.9% 10.7% 328 325,700
30 Brooklawns 12.1% 6.2% 2.6% -0.4% 15.5% 149 350,100
31 Elmwood 7.1% 7.8% 3.7% 5.0% 3.4% 267 350,000
32 Meadowbrook N/A N/A N/A N/A N/A 0 N/A
33 South Oak Hill 1.9% 2.9% 11.4% 8.2% 8.3% 291 287,200
34 Westdale 4.5% 7.0% 14.9% -2.8% 6.0% 106 299,700
35 Creekside 2.3% 8.1% 4.4% 1.3% 2.0% 172 353,500
Quintile Counts 2,902 1,350 2,554 2,281 2,464 11,580
Study session meeting of March 22, 2021 (Item No. 2 ) Page 8
Title: 2021 market value overview
St. Louis Park -- Condominium Properties
Historical Change of Assessed Market Values
Year of Assessment 2017 2018 2019 2020 2021
a. Median Assessed Value: 143,500 155,100 169,900 171,600
174,30
0
b. City-Wide Static Change: 7.1% 9.2% 6.5% 4.0% 1.6% Code Complex Reference 2017 2018 2019 2020 2021 Units Median
MO Monterey Coop 4.5% 6.4% 6.6% 3.3% 3.8% 8 105,950
AC Aquila Commons Coop 8.3% 6.5% 6.6% 3.3% 0.7% 106 230,500
33 3300 On The Park 1.8% 13.9% 4.4% 3.6% 0.0% 128 176,100
35 35th St Condos - Apt Conver 4.9% 5.7% 0.0% 3.3% 20.0% 11 155,100
55 55+ Condos -7.7% 8.0% 21.1% 6.8% 6.9% 60 253,450
BK Brookside Lofts - 4100 Vernon -6.6% 0.0% 15.5% -2.1% 0.0% 27 242,000
BK Brookside Lofts - 4132 Vernon -6.3% 0.0% 15.5% -2.1% 0.0% 14 N/A
BR Bridgewalk - Conversion 11.5% 9.5% 12.0% 2.4% 4.9% 92 131,900
CA Calhoun Hill 3.8% 6.5% 4.9% 3.4% 12.2% 7 404,600
CH Coach Homes 5.2% 7.5% 13.7% 10.6% 1.5% 128 159,400
CS Cedar Trails - (South Twnhme) 11.2% 6.7% 9.9% 1.7% 2.3% 32 206,700
CT Cedar Trails - (North of CLR) 11.6% 5.9% 8.6% 3.8% 7.4% 280 153,700
CW Cedar Trails - (S-West Twnhme) 4.6% 4.4% 9.9% 13.4% 0.0% 48 230,550
EV Elmwood Village 5.3% 4.5% 6.8% 1.7% 0.0% 77 337,800
FH Fern Hill 9.5% 0.0% -2.9% -7.3% -4.8% 30 165,200
GR Greensboro Condos - HIA 27.4% 8.8% 2.1% 22.0% 2.8% 164 115,100
HV Harmony Vista (Hoigaards) 5.1% 6.4% 6.7% 6.9% 3.9% 74 238,600
IB Inglewood Boutique 16.6% 6.5% 3.0% -9.3% 5.2% 6 350,250
LN Lynn Ave Condos - Apt Conver 5.0% 6.3% 7.4% 5.1% 3.9% 12 220,000
LY Lynwood Condos -4.1% 4.5% 8.9% 8.1% 12.0% 11 201,000
MC Monterey Pl - Apt Convers 5.9% 5.0% 6.9% -0.1% -3.7% 30 253,300
MR Murphy Ridge Condo Twnhme 5.3% 5.9% -5.9% 3.3% 3.8% 4 165,500
MW Monterey West - Condo Twnhme 0.5% 0.0% -9.0% 3.3% 3.9% 7 235,900
NP Natchez Pl 5.0% 0.0% 14.9% 13.7% -2.6% 27 195,300
OX Oxford Gardens - Apt Convers 4.7% 0.0% 6.6% 3.3% 3.9% 12 104,700
P0 Parkside Urban Lofts - 460 Bldg 7.6% 9.1% 2.2% 1.8% 6.1% 24 343,900
P2 Parkside Urban Lofts - 462 Bldg 3.0% 9.9% 6.4% -1.1% 11.7% 22 327,200
P4 Parkside Urban Lofts - 464 Bldg 4.0% 11.3% 2.2% 8.9% -1.1% 22 306,200
PP Pondview Park - Apt Conver 14.8% 4.6% 6.7% 14.0% 4.1% 30 153,800
PW Pointe West Condos 7.9% 5.0% 10.3% -2.4% 0.0% 86 337,300
S1 Sungate 1 - East of Alabama (N) 17.2% 17.1% 6.6% 5.3% -1.1% 20 147,600
S2 Sungate 2 - East of Alabama (S) 1.5% 20.0% 14.9% 0.9% 1.3% 26 179,700
S3 Sungate 3 - West of Alabama 17.3% 2.4% 6.7% 1.4% 0.0% 14 217,700
SR Sunset Ridge - HIA 25.5% 3.2% 9.7% 3.0% 3.1% 240 148,400
TF Twin Fountains 14.3% 15.5% 10.3% 1.1% 7.2% 88 140,800
EL Excelsior Lofts (T Joe Site) -4.6% 10.6% 8.4% -1.5% 2.1% 86 274,200
GW Grand Way (NE Bldg) 0.8% 9.8% 0.4% 5.6% -4.5% 124 348,600
TG The Grand NW @ Excelsior 3.3% 9.8% -4.2% 4.4% 0.0% 96 435,400
Study session meeting of March 22, 2021 (Item No. 2 ) Page 9
Title: 2021 market value overview
VL Village Lofts -4.0% 9.0% 9.7% 6.6% 7.7% 60 234,500
WE Westmoreland - HIA 5.5% 22.6% 7.1% 11.3% 2.1% 72 113,400
WF Wooddale Flats 41.1% 4.0% 1.0% 2.9% -9.1% 33 439,800
WL Wolfe Lake 19.0% 31.6% 3.8% 2.3% 4.1% 131 198,750
WM Westmarke Condos 5.0% 6.4% 6.6% 1.7% 8.1% 64 229,600
WO West Oaks 1.8% 21.4% 10.5% 1.0% 1.2% 75 268,500
WV Westwood Villa - HIA 0.3% 30.3% 19.5% 10.7% 0.0% 66 125,700
WY Wynmoor 0.4% 34.2% 11.2% 3.3% 0.0% 56 125,800
Quintile Counts 440 546 437 693 435 2,830
St. Louis Park -- Townhome Properties Historical Change of Assessed Market Values
Year of Assessment 2017 2018 2019 2020 2021
a. Median Assessed Value: 165,200 174,900 190,200 211,200 222,100
b. City-Wide Static Change: 6.6% 4.0% 9.5% 9.5% 5.2% Code Complex Reference 2017 2018 2019 2020 2021 Units Median
BG Brunswick Gables 7.5% 7.1% 7.9% 2.8% 2.9% 7 273,400
DB Dan-Bar Rental Twnhme 2.7% 4.0% 8.0% 2.7% 3.0% 4 219,300
EW Excelsior Way Rentals 25.7% 26.5% 14.0% 6.5% 5.0% 38 225,300
GR Greensboro - HIA 7.0% 10.0% 15.2% 1.8% 0.5% 96 205,200
HE Hampshire Estates 4.9% 10.2% 15.2% 2.8% -3.0% 8 184,600
HH Hampshire House 0.0% 8.6% 14.3% 2.7% 2.9% 13 188,600
LL Lamplighter Park 3.6% 6.9% 8.7% 2.8% -2.2% 5 416,300
LA Lohmans Amhurst 6.0% 12.8% 7.0% 5.5% -0.4% 276 218,800
ME Medley Row 3.4% 7.9% 11.0% 2.8% 3.0% 22 338,100
MP Montery Park 2.4% 7.0% 2.5% 0.3% 6.8% 18 416,850
PC Princeton Court 3.0% 4.8% 1.8% 0.3% 3.0% 13 447,100
QC Quentin Court 2.9% 17.5% 2.3% 0.3% 3.0% 10 441,250
SH Shamrock 2.2% 7.6% 18.8% 11.3% 1.4% 16 205,100
SK Skyehill -6.1% 11.5% 9.4% 2.8% -8.1% 31 262,400
SW Sungate West 6.5% -0.1% 11.5% 14.4% -7.6% 48 193,400
VP Victoria Ponds 1.2% 5.2% 7.7% -3.6% 1.1% 72 395,300
WT Westwood -3.5% 3.7% 19.2% 1.2% 4.6% 38 238,400
ZA Zarthan Apt Twnhomes 4.0% 8.4% 16.0% 2.8% 2.3% 18 236,600
ZP Zarthan Park 4.0% 10.3% 16.7% 2.8% 2.9% 16 248,600
Quintile Counts 276 132 293 30 18 749
a: Median assessed market values - including improvement values.
b: The % change is market driven value change and does not include improvement values.
Source: Annual Compilations by the St. Louis Park Assessing Office
Study session meeting of March 22, 2021 (Item No. 2 ) Page 10
Title: 2021 market value overview
Apartments: This sector is largely driven in the historic sense by tenant supply/demand, the
income stream and owner return expectations. This use category has exhibited very robust growth
for an extended period of time (effectively increasing total unit counts by 30%+ in the last
decade). Thus we provide a longer historical perspective on market change and improvement
values:
- For 2012 – market change at + 4.9% which included very little new construction value.
- For 2013 – market change at + 8.2% and +13.9% including new construction.
- For 2014 – market change at + 8.2% and +20.2% with multiple new complexes on-line.
- For 2015 – market change at +12.1% and +13.3% for the next phase of new complexes.
- For 2016 – market change at +12.0% and +17.8% including new construction.
- For 2017 – market change at + 6.4% and + 9.5% including new construction.
- For 2018 – market change at + 7.5% and +13.3% including new construction.
- For 2019 – market change at + 8.2% and +11.4% including new construction.
- For 2020 – market change at +11.4% and +15.2% including new construction.
- For 2021 – market change at + 2.3% and + 3.9% including new construction.
Looking at the above historical pattern presents a very clear picture of both market appreciation
which relates to a very active renovation and new construction environment. The totals above
reflect aggregate value change which includes mixed market appreciation rates annually for the
Class A-B-C stock. The market demand for units is primarily attributed to our location with
proximity to Minneapolis, major employers in the west metro area as well as the broader economy.
Class A projects have been the primary focus for new construction due to the inter-connected
nature of the traditional approaches to valuation… cost to build, income stream and sales. It is
important to recognize that the Class A and B stock was severely under-built dating back to the
mid-1980 to mid -1990 time periods. The new complexes are helping to diversify the housing stock
in that the total unit count is now distributed with approximately half being class C stock (typically
less than 3 stories, built circa 1960-1975) and half being Class A and B stock.
For your reference, the 2021 median unit values for the stock are: Class A at $261,000 reflecting
an increase of 5.1%; the B’s are in a range of $167,000 to $219,000 at overall increase of 7.6%; and
the C’s were near flat at $110,000. The market for the 2021 assessment was complicated in the
short term as outside pandemic forces were at play and potentially affecting income collections.
Looking beyond the immediate horizon, we have noted the extreme length of the current growth
cycle and that St. Louis Park’s location and the development of light rail are expected to extend
growth beyond what may be expected in other suburban locations.
Commercial and industrial: This sector has exhibited continuous market appreciation and new
construction growth for an extended period approaching a decade. The 2021 assessment ended the
market appreciation streak due to the pandemic. Value changes year over year are dependent on
how these uses are performing in a range of national, regional and immediately local economies.
Commercial and industrial properties are valued across jurisdictional boundaries to a signif icant
extent with the specific use dictating how large of an area the competitive market occupies.
The overall market adjustment for the 2021 valuation on the commercial properties was 2.6%
inclusive of new construction and -1.6% market driven adjustment of the existing stock. While this
Study session meeting of March 22, 2021 (Item No. 2 ) Page 11
Title: 2021 market value overview
group of property saw an overall gross increase in value due to new construction, many use niches
saw decreases in value due to the effects of the pandemic on their business which ripples down to
their underlying market value in the fee simple sense (noted as the economic variables of business
value, value -in-use, leased fee may or may not play out the same as fee simple). Those most
negatively affected were hospitality sector, in-person retail and traditional restaurants (specifically
excluding quick service with drive -through capacity).
The overall market adjustment for the industrial stock was 3.6% which was mostly market driven
with nominal new construction value for the year. Looking at these figures brings three
observations to mind. The first is that value changes in this use category become tricky as demand
for buildings previously viewed as functionally obsolescent is varying due to the economy. A
significant volume of the current industrial stock is located near the future light rail station areas
which is a major driver of value change in terms of use, alterations and interim holding. The two
preceding issues bring us to the economic reality of under-lying land values. As a mature inner
ring suburb – active ly engaged in redevelopment – our land value can be a limiting factor for
industrial users. The reason being that industrial uses are typically land intensive and low-rise
while our location and associated land values are a self-reinforcing premium driven by density.
To close, the commercial sector saw overall growth due to new construction. Segments of this
sector saw decreases in value due to the impact of the pandemic. The industrial market saw
overall increases in value due to location, especially those close to the future light rail stations.
Meeting: Study session
Meeting date: March 22, 2021
Discussion item : 3
Executive summary
Title: Follow -up discussion on funding of climate action plan
Recommended action: No action required. This topic has been placed on the agenda to
continue the conversation around long-term funding for the implementation of the city’s
Climate Action Plan (CAP).
Policy consideration: Does the city council support the establishment of a Climate Fund for
climate action programs? How does council wish to ensure viability of the fund in future years?
Summary: The city has increased its investment for implementation of the CAP since adoption
in 2018. During development of the 2021 budget, council began discussing whether increased
investment into implementing the CAP is needed to reach its goals. The seven midterm goals
are now less than ten years away. Questions remaining included appropriate funding level, how
to prioritize programs, and available methods for ongoing funding.
The council discussion during the Jan. 11, 2021 meeting on funding sustainability programs was
helpful for staff to further develop recommendations on accelerating community changes
needed to meet CAP goals. These include developing an expanded menu of ongoing flexible
programs available for residents and businesses to help leverage private investment when
owners are ready to make improvements, and a new Climate Fund to enable cost sharing
programs to be managed without the limitations of calendar year budgeting.
Financial or budget considerations: Remaining unrestricted fund balance dollars from the 2020
operating budget may be available this year for the council to allocate to create a Climate Fund.
Council direction on future funding will be incorporated as preparation of the 2022 operating
and CIP budgets begin.
Strategic priority consideration: St. Louis Park is committed to continue to lead in
environmental stewardship.
Supporting documents: Discussion
Jan. 11, 2021 study session report
Prepared by: Emily Ziring, sustainability manager
Reviewed by: Brian Hof fman, building and energy director
Approve d by: Tom Harmening, city manager
Page 2 Study session meeting of March 22, 2021 (Item No. 3)
Title: Follow-up discussion on funding of climate action plan
Discussion
Background: In February 2018 the city council formally adopted the city’s CAP. The goals of the
plan are some of the most robust of any city in Minnesota. The biggest bowl outcome of the
plan is for the community to achieve community-wide carbon neutrality by 2040, with seven
important midterm goals set for 2030.
During the January 11 study session on funding sustainability programs, council noted the ir
support for three approaches to climate action: 1) programs and projects that provide the
greatest carbon savings per dollar invested by both the city and owner are important; 2)
stressing the financial benefits that owners receive by having more energy efficient buildings
will be crucial to meeting the city’s goals; and 3) leadership by example can have a ripple effect
not just for the St. Louis Park community, but for communities globally.
Present considerations:
Funding goals
Be cause in most cases the city cannot compel residents and business owners to, for example,
make building improvements or purchase electric vehicles and chargers or plant trees or
salvage building materials, the best way to reach our climate goals is to provide cost sharing
funds that can leverage private investment over the long term—and to pair those funds with
increased outreach and education.
The ideal long-term funding mechanism for these cost sharing programs is one that provide s
flexibility in funding programs. Although the CAP has a defined and progressive plan designed
to maximize carbo n reduction, changing federal/state programs and individual building owners’
timing for making improvements and investments supports the need to be nimble.
Homeowners may be more willing to make investments at any given time than business
owners, and vice versa. The ideal funding mechanism must be able to respond to these
fluctuations. Additionally, the funding mechanism should be able to fund occasional cost share
projects (such as a large commercial energy project) that may be approved in one calendar year
but completed in the following year. Current funding for sustainability programs is provided
through the annual operating fund, which means that funds are restricted for use only in the
budgeted calendar year.
The idea is to add enough of an incentive on top of private investment (owner contributions,
utility rebates, and grants) to spur action around energy efficiency, renewables, fuel switching,
waste reduction, and other climate action plan goals.
Af ter considering a variety of options staff recommends the establishment of a new Climate
Fund, specifically for funding programs designed to leverage private investments that
contribute to reaching Climate Action Plan goals.
P age 3
Climate Fund
The purpose of a Climate Fund would be to pay for on-going cost share programs that are likely
to fluctuate in cost and target audience from year to year. The idea is similar to the financial
model now used for the Affordable Housing Trust Fund.
The fund balance would roll over from year to year, making it suitable for funding projects that
may be approved in one calendar year but completed in the following year. Once the cost
sharing incentive programs (such as Climate Champions for business and Climate Champions for
residents) are set up, the funds could target both the residential and commercial sectors
simultaneously. Planned program expenditures would still need to be approved by council, but
a Climate Fund would ensure that funds dedicated to Climate Action Plan goals and strategies
are available long term. Staff will also continue to monitor and apply for outside funding
opportunities, including grants, that help offset the cost of programs and projects and
demonstrate innovation and leadership.
As council discussed in January, many of these city expenditures can be offset directly and
indirectly by the benefits the city, businesses and residents will receive. The most commonly
cited benefit is utility cost savings, and council has indicated an interest in prioritizing those
programs and projects that provide the greatest carbon savings per dollar invested. That said,
additional benefits such as overall carbon reduction and increased resilience to extreme
weather events should not be overlooked even if those benefits do not always have an
immediate or apparent financial return on investment.
Here are some examples of cost savings and payback for the types of commercial energy
efficiency improvements we could see under Climate Champions:
Fuel Technology
Type
Project
Cost
Rebate
Amount
(from
utility)
Cost
Savings
(annual)
kWh
saved
Dth
Saved
Proposed
city cost
share
Effective
Project
Cost
Simple
Payback
(years)
Electricity Lighting $ 3,055 $ 1,200 $ 309 4,283 $ 600 $ 1,255 4.1
Electricity Lighting $ 11,128 $ 3,707 $1,977 28,728 $ 1,853 $ 5,566 2.8
Electricity Lighting $ 9,600 $ 5,345 $3,008 32,508 $ 2,672 $ 1,581 0.5
Electricity Lighting $ 5,340 $ 1,257 $1,006 12,530 $ 628 $ 3,453 3.4
Electricity HVAC /AC $ 48,180 $ 3,000 $1,874 18,560 $ 1,500 $ 43,680 23.3
Electricity Motors $ 16,400 $ 600 $ 234 3,799 $ 300 $15,500 66.2
Electricity Cooling
Efficiency
$ 5,156 $ 1,018 $ 164 856 $ 509 $ 3,628 22.0
Electricity Foodservice $ 12,100 $ 400 $ 622 8,982 $ 200 $ 11,500 18.5
Electricity Foodservice $ 16,400 $ 800 $ 466 6,736 $ 400 $ 15,200 32.6
Natural
Gas
HVAC/boiler $ 48,180 $ 2,400 $ 773 129 $ 1,200 $ 44,580 57.6
Natural
Gas
Foodservice $ 12,100 $ 1,170 $ 534 89 $ 585 $ 10,345 19.4
Natural
Gas
Heating $ 1,393 $ 250 $ 434 72 $ 125 $ 1,018 2.3
Natural
Gas
Heating $ 1,342 $ 400 $ 157 39 $ 200 $ 742 4.7
Study session meeting of March 22, 2021 (Item No. 3)
Title: Follow-up discussion on funding of climate action plan
P age 4
Given these examples, the city could benefit from 130,441 pounds of carbon reduced at a total
city investment cost of $10,772, for an overall carbon reduction cost of $182.05 per metric ton.
For comparison, the carbon reduction cost of solar on the Rec Center roof would be $206.56
per metric ton.
While there can be a wide range in project payback terms, many property owners will see a
cost savings within five years. Some improvements, however, will require significant up-front
capital and may have payback terms that exceed the useful life of the new equipment.
Investments such as electrification may have no payback, and electric vehicles may be
equivalent to or cheaper than gasoline vehicles when considering total cost of ownership over
many years. Despite this, staff will encourage residents and businesses to take action for the
less apparent benefits that these projects provide —i.e. reduced carbon and potentially
increased resiliency, reduced maintenance costs and improved ind oor and outdoor
environmental quality.
Staff believes that the cit y’s best chance of success for leading community-wide climate action
will be to develop this targeted yet flexible funding plan that reduces carbon, adjusts to
leverage outside funding opportunities, and inspires motivation to take action. Communication
plans will continue to be developed for any climate action policies and programs, and staff (as
well as Environment and Sustainability Commission members) will look to do continued
outreach to make those policies and programs well known.
Operating and capital funds
Integration of our Climate Action Plan goals into the regular operation of the city is occurring
and proposed to continue. Creation of a Climate Fund for supporting programs in the
community would not change the mechanism or commitment for budgeting staffing or
purchases.
The Building and Energy Department’s annual operating budget would continue to include
staffing, benefits, and related administrative costs needed to operate the Sustainability Division
and support the Environment and Sustainability Commission (ESC). Necessary staffing
adjustments to develop and maintain programs, and to support the community engagement
needs of the programs, will be proposed in the annual operating budget process for all
departments.
The Capital Replacement Fund for planned city-wide purchase/replacement/improvement of
vehicles, buildings, and equipment would continue as the funding mechanism for city-owned
and controlled inf rastructure and assets. Many energy efficiency and renewable energy projects
have been successfully completed over the past few years. Additional capital investment will be
required in order to further reduce our own facilities’ energy consumption and carbon
footprint. The shift to electric vehicles within the fleet utilized by staff will also continue to be
planned for.
Financial considerations: The Climate Fund is recommended to be established in 2021 with
available dollars from a portion of the unrestricted fund balance expected from the 2020
operating budget. Following completion of the audit, council may select where the remaining
Study session meeting of March 22, 2021 (Item No. 3)
Title: Follow-up discussion on funding of climate action plan
P age 5
fund balance above the 45% reserve target is allocated. Staff is anticipating up to $500,000 may
be available for Council to seed the Climate F und based on preliminary estimates.
One additional recommended change for 2021 is to re -allocate the $100,000 currently specified
in the 2021 Sustainability Division operating budget as a line item for programs. These funds are
currently for cost sharing and incentive programs to promote the Climate Champions program,
which is nearing public launch. With a Climate Fund, these program costs would be charged to
the fund and not the annual operating budget.
With successful Climate Action Plan programs and consistent community engagement
encouraging the public to use them, additional revenue sources should be planned for to
maintain a sufficient Climate Fund balance . Depending on the public response to the programs,
staff expects another $100,000 - $200,000 annually will be required and should be initially
planned for.
Some revenue options for council discussion include:
•Generate additional revenue via general property taxes or implementation of an EDA
levy (a property tax).
•Reallocate/reprioritize existing revenues the city spends to deliver current services and
programs to the community and redirect them to the CAP.
•Seek out new tools via special legislation that allows the city to incentivize private
property owners to reduce their carbon footprint. An example would be the special
legislation the city is proposing this session that would allow the city to use the special
assessment tool to lend money to private property owners to make energy
improvements to their property. For some time now cities have used this approach to
incentivize the installation of sprinkler systems in commercial properties , which is
authorized by state statute.
•Funds currently dedicated to the city’s 100% renewable energy commitment through
subscriptions to WindSource and Renewable Connect (approximately $106,000
annually) could also be redirected to the Climate Fund once our agreements with Xcel
end in mid-2022.
•Combination of the above or others.
Staff provided an overview of this funding plan to the ESC during their March 3 meeting and
there was support for the direction. Some ESC members questioned if funding sources other
than raising the tax levy or creating a new levy could be explored, including p ossibly
transferring some funding from other services, programs or initiatives to focus on making
progress on the CAP.
The amount that will be required to leverage private investment in future years will be
dependent on community participation. Staff may have a clearer picture later this year as the
Solar Sundown and Climate Champions for commercial properties programs are implemented.
Next steps: If council is supportive of establishing this funding mechanism and provides
direction on continued funding, staff will make the required adjustments as the planning
process for future budgets begins.
Study session meeting of March 22, 2021 (Item No. 3)
Title: Follow-up discussion on funding of climate action plan
Meeting: Study session
Meeting date: March 22, 2021
Discussion item : 4
Executive summary
Title: Future study session agenda planning and prioritization
Recommended action: The city council and city manager to set the agenda for the regularly
scheduled study session on April 12, 2021.
Policy consideration: Not applicable.
Summary: This report summarizes the proposed agenda for the regularly scheduled study session
on April 12, 2021.
Also attached to this report is:
-Study session discussion topics and timeline
-Proposed topics for future study session discussion:
Topic Proposed by Councilmember (s)
Vehicle idling Larry Kraft and Margaret Rog
Semi-trailer truck parking Margaret Rog
Financial or budget considerations: Not applicable.
Strategic priority consideration: Not applicable.
Supporting documents: Tentative agenda – April 12, 2021
Study session discussion topics and timeline
Proposed topics for future study session discussion
Prepared by: Debbie Fischer, administrative services office assistant
Reviewed by: Maria Solano, senior management analyst
Approved by: Tom Harmening, city manager
Study session meeting of March 22, 2021 (Item No. 4) Page 2
Title: Future study session agenda planning and prioritization
APRIL 12, 2021.
6:15 p.m. Convene Local Board of Appeal and Equalization (LBAE)
To be held via videoconference
6:30 p.m. Study session - To be held via videoconference
Tentative discussion items
1.Planning commission/board of zoning appeals workplan review – community development
(30 minutes)
Annual workplan update from the planning commission/board of zoning appeals.
2.Parks and recreation advisory commission workplan review – Operations and recreation
(30 minutes)
Annual workplan update from the parks and recreation advisory commission.
3.P8 Zoning code size limits for houses – Community development (60 minutes)
Discussion regarding whether to revisit the city’s regulations relating to the sizes of single -
family houses. In the late-1990s and mid -2000s, the city relaxed its regulations to promote
expansion of single -family houses to encourage residents to stay in the city as their housing
space needs increased, as opposed to moving to outer ring suburbs where larger houses are
more readily available (move up housing). In addition, it was hoped that the changes would
reduce variance requests, which they did. The city council initiated this discussion as a means
to stem the loss of affordable single -family homes as builders and private owners tear down
or add onto older, smaller homes and build much larger ones. Staff and planning commission
began to review potential approaches.
4.Future study session agenda planning – administrative services (5 minutes)
Communications/meeting check-in – administrative services (5 minutes)
Time for communications between staff and council will be set aside on every study session
agenda for the purposes of information sharing.
Written reports
5.Dakota bridge project and public art update
6.Boards and commissions appointment process update
7.Climate Champions cost sharing program
Study session meeting of March 22, 2021 (Item No. 4) Page 3
Title: Future study session agenda planning and prioritization
Study session discussion topics and timeline
Future council items
Priority Discussion topic Comments Timeline for council
discussion
1 Council meetings – agenda and
video presentation TBD
2 Inclusionary housing policy –
requiring family size units 5/10/21
3 Public process expectations and
outcomes
Staff is working on the approach for
undertaking this discussion. 2nd qtr. 2021
4
Creating pathways to home
ownership for BIPOC individuals
and families
Discussed at 2/8/21 council meeting.
Program being developed. In process
5 Community and neighborhood
sidewalk designations
To be combined w/ Connect the Park
discussion. 2nd qtr. 2021
6 Transportation commission TBD
7
-Easy access to nature, across
city, starting w/ low-income
n’hoods / WHNC Access Fund
*On hold pending direction from school
district.*On hold
8
Revisit housing setback, FAR , &
more related to affordable housing
Zoning code size limits for houses
(updated title)
Going to planning commission for
discussion. 4/12/21
9 Public forums at council mtgs 9/23/19 SS. Staff is researching options. 2nd qtr. 2021
11 STEP discussion: facilities Council asked staff to consider lending
options to assist STEP in buying a new bldg. On hold
12
Remove mint & menthol
exemption from existing flavored
tobacco policy
On hold pending court decision. *On hold
Council items in progress
Priority Discussion topic Comments Next Steps
- Policing discussion Discussed 7/27/20 , 9/29 /20 & 2/22/21. TBD
10 Boards and commissions general
review
Discussed 1/25/21. Revisit after the annual
workplan process. 3rd qtr. 2021
- Conversion therapy ban
Report on 2/22/21. Resolution adopted
3/15/21. HRC to review and make
recommendations on ordinance.
TBD
Study session meeting of March 22, 2021 (Item No. 4) Page 4
Title: Future study session agenda planning and prioritization
Study session meeting of March 22, 2021 (Item No. 4) Page 5
Title: Future study session agenda planning and prioritization
Meeting: Study session
Meeting date: March 22, 2021
Written report: 5
Executive summary
Title: February 2021 monthly financial report
Recommended action: No action is required.
Policy consideration: Monthly financial reporting is part of our financial management policies.
Summary: The monthly financial report provides an overview of general fund revenues and
departmental expenditures comparing them to budget throughout the year.
Financial or budget considerations: Expenditures should generally be at about 17% of the
annual budget at the end of February. General fund expenditures are running 3% under budget
through February.
The only notable variance is in o rganized recreation, where there is a temporary overage due to
payment of the annual community education contribution of $187,400 to the school district in
January. This is consistent with prior years.
Strategic priority consideration: Not applicable.
Supporting documents: Summary of revenues and departmental expenditures – General Fund
Prepared by: Darla Monson, accountant
Reviewed by: Melanie Schmitt, chief financial officer
Approve d by: Tom Harmening, city manager
Summary of Revenues & Departmental Expenditures - General Fund As of February 28, 2021 20212021201920192020202020212021Balance YTD Budget Budget Audited Budget Unaudited Budget YTD Feb Remaining to Actual %General Fund Revenues: General Property Taxes26,880,004$ 26,952,306$ 28,393,728$ 28,635,694$ 29,601,811$ -$29,601,811$ 0.00% Licenses and Permits4,103,424 5,264,659 4,660,811 5,288,380 4,621,829 1,196,085 3,425,744 25.88% Fines & Forfeits279,700 274,340 280,000 129,314 231,000 12,473 218,527 5.40% Intergovernmental1,760,900 1,761,763 1,760,082 2,032,454 1,661,549 14,430 1,647,119 0.87% Charges for Services2,187,319 2,160,345 2,273,824 1,583,210 2,013,834 126,382 1,887,452 6.28% Rents & Other Miscellaneous1,367,012 1,500,867 1,456,102 1,159,728 1,499,091 269,804 1,229,287 18.00% Transfers In1,999,877 2,012,706 2,038,338 1,982,338 2,055,017 338,670 1,716,348 16.48% Investment Earnings 180,000 523,124 210,000 27,234 200,000 200,000 0.00% Other Income31,300 57,274 621,280 759,772 593,300 194,006 399,294 32.70% Use of Fund Balance298,156 230,026 25,000 25,000 0.00%Total General Fund Revenues39,087,692$ 40,737,411$ 41,694,165$ 41,598,125$ 42,502,431$ 2,151,849$ 40,350,582$ 5.06%General Fund Expenditures: General Government: Administration1,837,620$ 1,673,619$ 1,868,599$ 1,497,099$ 1,842,882$ 172,275$ 1,670,607$ 9.35% Finance1,034,199 1,078,291 1,124,045 1,182,523 1,129,591 156,690 972,901 13.87% Assessing772,746 751,737 808,171 788,366 798,244 123,976 674,268 15.53% Human Resources805,620 756,767 823,209 796,088 837,736 125,994 711,742 15.04% Community Development1,502,521 1,515,672 1,571,894 1,536,657 1,576,323 240,762 1,335,561 15.27% Facilities Maintenance1,170,211 1,209,474 1,265,337 1,410,607 1,349,365 172,880 1,176,485 12.81% Information Resources1,674,937 1,474,604 1,709,255 1,647,366 1,683,216 254,179 1,429,037 15.10% Communications & Marketing805,674 786,448 828,004 712,542 970,934 127,869 843,065 13.17%Total General Government9,603,528$ 9,246,612$ 9,998,514$ 9,571,247$ 10,188,291$ 1,374,624$ 8,813,667$ 13.49% Public Safety: Police10,335,497$ 10,452,038$ 10,853,821$ 10,677,639$ 11,307,863$ 1,674,113$ 9,633,750$ 14.80% Fire Protection4,813,078 4,754,524 5,040,703 4,854,824 4,998,636 748,605 4,250,031 14.98% Building 2,555,335 2,430,473 2,696,585 2,312,616 2,571,968 363,438 2,208,530 14.13%Total Public Safety17,703,910$ 17,637,035$ 18,591,109$ 17,845,079$ 18,878,467$ 2,786,156$ 16,092,311$ 14.76% Operations: Public Works Administration290,753$ 214,436$ 273,318$ 219,984$ 249,256$ 22,946$ 226,310$ 9.21% Public Works Operations3,111,481 3,099,493 3,331,966 3,170,181 3,285,820 426,327 2,859,493 12.97% Vehicle Maintenance1,242,236 1,268,700 1,278,827 1,188,426 1,303,159 188,471 1,114,688 14.46% Engineering570,377 609,567 551,285 784,399 523,547 104,042 419,505 19.87%Total Operations5,214,847$ 5,192,196$ 5,435,396$ 5,362,990$ 5,361,782$ 741,785$ 4,619,997$ 13.83% Parks and Recreation: Organized Recreation1,579,569 1,498,462 1,637,002 1,368,426 1,639,358 371,496 1,267,862 22.66% Recreation Center1,949,657 2,041,386 2,061,394 1,874,992 2,082,697 225,794 1,856,903 10.84% Park Maintenance1,833,297 1,820,455 1,906,363 1,804,905 1,916,643 248,208 1,668,435 12.95% Westwood Nature Center643,750 612,266 748,683 606,100 736,515 93,459 643,056 12.69% Natural Resources484,784 429,409 504,143 433,362 496,497 16,424 480,073 3.31%Total Parks and Recreation6,491,057$ 6,401,977$ 6,857,585$ 6,087,785$ 6,871,710$ 955,381$ 5,916,329$ 13.90% Other Depts and Non-Departmental: Racial Equity and Inclusion -$4,592$ 314,077$ 272,994$ 341,293$ 54,436$ 286,857$ 15.95% Sustainability26,283 497,484 245,461 432,043 40,016 392,027 9.26% Transfers Out300,000 428,845 0.00% Contingency and Other74,350 121,245 144,860 0.00%Total Other Depts and Non-Departmental74,350$ 452,119$ 811,561$ 663,314$ 1,202,181$ 94,452$ 678,884$ 7.86%Total General Fund Expenditures39,087,692$ 38,929,940$ 41,694,165$ 39,530,415$ 42,502,431$ 5,952,398$ 36,121,188$ 14.00%Study session meeting of March 22, 2021 (Item No. 5) Title: February 2021 monthly financial reportPage 2
Meeting: Study session
Meeting date: March 22, 2021
Written report: 6
Executive summary
Title: 2020 housing activity report
Recommended action: The purpose of this report is to update council on housing programs and
activity. This report is informational. No action is required.
Policy consideration: None at this time.
Summary: The housing activity report has been presented to council since 2005. The executive
summary provides a brief overview of the detailed report. The report provides information on
new housing policies and initiatives, historical trends, program descriptions, affordable housing
data and information on housing programs in St. Louis Park.
Financial or budget considerations: Not applicable
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: 2020 housing activity report
Prepared by: Marney Olson, assistant housing supervisor
Reviewed by: Michele Schnitker, housing supervisor/deputy CD director
Approve d by: Tom Harmening, city manager
Page 1
2020 Housing Activity Report
2020 Housing Activity Report
Executive summary
The purpos e of this report is to provide city policy makers with an overview of housing program activity during
2020. The report provides information on new initiatives and updates as well as historical trends, progr am
descriptions, and data on city and federally funded housing programs and activity that are in line with the city’s
housing goals.
1.New initiatives and updates in 2020
a.Crime-free, drug -free ordinance workgroup
b.Glenhurst energy efficient demonstration project
c.Notice of eviction policy
2.Cit y housing policies
a.Inclusionary Housing (30%, 50% and 60% AMI)
b.Tenant Protection Ordinance (60% AMI and below)
c.Housing Trust Fund
d.NOAH preservation strategies:
i.4D tax incentive program (60% AMI and below)
ii.Multifamily rental rehab program (60% AMI and below)
iii.Legacy program (60% AMI and below)
3.Remodeling activity
a.Housing rehab projects (general remodeling) increased in 2020. Most projects were financed without
using city loans.
b.The city’s Architect Design Services and Remodeling Advisor Services continued to be great tools for
residents and usage is in line with previous years.
c.Major remodeling projects continue to be strong in 2020. There were 49 additions and 85 major
remodels in 2020 with average valuations at $165,862 and $89,474 respectively. The number of
additions and major remodels was consistent with 2019 but the average valuations were higher.
d.The Construction Management Plan program has been in place since November 2014. In 2020, 33
neighborhood notification letters were sent for Construction Management (CMP) plan projects: 19
major additions, 11 demo/rebuilds, 2 new builds only and 1 demo only. A map is included in the
report showing the location of these projects. This is an increase in the number of CMP projects .
4.Affordable h ome o wnership , Community Development Block Grants and emergency rental assistance
a.There were 24 buyers under the Live Where You Work (LWYW) program during its 10 year run. In
2019 the new D own Payment Assistance (D PA) program provided loans to 8 first -time homebuyers in
St. Louis Park. (120% AMI) and 10 loans in 2020.
b.West Hennepin Affordable Housing Land Trust added two homes in St. Louis Park in 2020 and now
have 19 affordable homes in the community.
c.CDBG funds were used to fund the Deferred Loan Program for low income residents in St. Louis Park
and the West Hennepin Affordable Housing Land Trust (WHAHLT) dba Homes Within Reach. (80%
AMI)
d. The city provides an emergency repair grant for low income homeowners in St. Louis Park. There were
3 emergency repair grants issued in 2020. (50% AMI)
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 2
Page 2
2020 Housing Activity Report
e.Annually the city provides funds to STEP for emergency rental assistance. In 2020 STEP received the
annual allocation of $60,000 in rental assistance and an additional $108,000 for rental assistance from
COVID funds.
5.Housing Matrix
a.Owner occupied (no rental license) properties comprise 56% of the housing market with rental
properties (units with a rental license) at 44%.
b.The single -family home ownership rate is 93%.
c.There are nearly 1200 units of senior housing in St. Louis Park.
d.Maxfield Research completed their rental study in the end of 2017 and of the 7,000 rental units
surveyed 49.3% are affordable at 60% AMI or below. Funds have been budgeted to update the study
in 2021.
e.The 2020 affordable ownership purchase price was $293,500 and 52% of homes in St. Louis Park are
assessed at or below this affordability limit. These homes are comprised of single family, condos and
townhomes.
6.Foreclosures
a.The foreclosure rate remains extremely low with only 4 residential foreclosures in 2020.
7. Federally Funded Housing Programs
a.The St. Louis Park Housing Authority affordable rental housing and rental assistance programs served
approximately 560 households with rental assistance in 2020. Income eligibility limits are 50% AMI for
the housing choice voucher (HCV) program, 80% for public housing although the majority of
households in public housing and the HCV program are below 30% AMI.
b.Family Unification Program and Mainstream Vouchers (50% AMI and below)
c.The St. Louis Park Housing Authority, in partnership with Hennepin County, has continued
administering the Stable HOME rental assistance program which provides housing assistance to
homeless or previously homeless individuals and families in Suburban Hennepin County. 57
households were served in 2020. (50% AMI)
d.78% of households served by housing authority rental assistance programs are at or below 30% AMI
and 19% are between 31-50% AMI.
e.Kids in the Park program – increased funding and is now serving 20 families. (50% AMI and below)
f.Lou Park – 32 tenants residing at Lou Park with project based vouchers were transitioned to tenant
based vouchers administered by the HA. (50% and below AMI)
Households served by housing authority rental assistance programs as of 12/31/2020
30% AMI 50% AMI 60% AMI 80% AMI Over 80% AMI
Number of
Households
435 107 6 7 5
Percentage of
Households
78% 19% 1% 1% 1%
8.Program Descriptions : This section gives detailed descriptions of the various housing programs.
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 3
Page 3
2020 Housing Activity Report
1.New initiative and updates in 2020
Crime-free, drug-free ordinance workgroup
The St. Louis Park City Council selected applicants from various stakeholder groups to form a crime -free, drug -free
ordinance workgroup (workgroup). The workgroup was created to conduct a comprehensive review and
evaluation of the effect of the crime-free, drug -free rental housing ordinance in order to:
•Determine its effectiveness
•Identify any unintended consequences or concerns
•Make recommendations to the city council on possible modifications to the ordinance
The workgroup began meeting in April 2019 and made recommendations to the city council in 2020. Following
extensive public process and analysis, in August 2020, the St. Louis Park City Council adopted revisions to the rental
license ordinance repealing the crime-free, drug-free sections of the ordinance. The requirement for training was also
amended to a more comprehensive rental license training with a refresher required every three years. The revisions
took effect in September 2020.
Glenhurst energy efficient demonstration project
To further the city’s housing goals of providing affordable home ownership opportunities and supporting the city’s
climate action plan strategies and goals, funding was included in the 2019 Housing Rehab budget for the acquisition
of a single-family home. The intent of the program was to acquire a single-family home to rehab and demonstrate
how energy efficient improvements can be made to the typical home found in St. Louis Park.
3611 Glenhurst Avenue South was a tax forfeited property which the city purchased in 2019 at a below-market
value to implement affordable housing. The city partnered with West Hennepin Affordable Housing Land Trust
(WHAHLT)/ dba Homes Within Reach on the energy efficient and other improvements to the home. The city
planned to use the home as a demonstration project and demonstrat ion open houses were scheduled for March
2020. Due to the pandemic the open houses were cancelled. The home was sold by WHAHLT as an affordable
home using the land trust model in 2020.
SPARC e-newsletter
The St. Louis Park Rental Coalition’s (SPARC) mission is to provide a community-wide forum that promotes
effective management practices and quality rental housing in St. Louis Park. In 2020 the SPARC newsletter shifted
to an e-newsletter providing informat ion to rental property owners and managers in St. Louis Park. The 2020
SPARC e-newsletter topics included, but were not limited to, information on the eviction moratorium, emergency
rental assistance opportunities from STEP, Hennepin County and the state, rental license training, the city’s notice
of eviction policy.
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 4
Page 4
2020 Housing Activity Report
2.City housing policies
The City of St. Louis Park has undertaken new initiatives and updates to current policies to address affordable
housing needs in the community.
Inclusionary h ousing
In June 2015 the city council adopted an Inclusionary Housing Policy that requires the inclusion of affordable
housing units for lower income households in new market rate multi-unit residential developments receiving
financial assistance from the city. The goal of the Inclusionary Housing Policy is to increase the supply of
affordable housing and promote economic and social integration.
In May 2017 the city council approved increasing the percentage of required affordable units and added a
requirement that developments covered by the policy must not discriminate against tenants who pay their rent
with government provided Housing Choice Vouchers or other local rent subsidies .
In 2018 the city council approved increasing the percentage of required affordable units at 60% AMI, adding a
30% AMI option, and changing the ownership to requiring a payment in lieu. The income limit eligibility for
existing tenants was amended in 2018 to be consistent with the tax credit income limits.
In 2019, in an effort to expand the eligibility of developments obligated to comply with the policy requirements
and ensure that any NOAH units lost due to multi-family residential development are replaced, the policy was
again updated.
The inclusionary housing policy applies to market rate multi-unit residential developments that receive financial
assistance from the city, seek PUD land use approvals or request a comprehensive plan amendment, and includes:
a)new developments that create at least 10 multi-family dwelling units; or
b)any mixed-use building that creates at least 10 multi-family dwelling units; or
c)renovation or reconstruction of an existing building that contains multi-family dwelling units that
includes at least 10 dwelling units; or
d)any change in use of all or part of an existing building from a non-residential use to a residential
use that includes at least 10 dwelling units.
Table 1: Inclusionary housing policy requirements
Initial Policy Current Policy
Rental Projects •10 % of units at 60% AMI
•8% of units at 50% AMI
•20% of units at 60% AMI
•10% of units at 50% AMI
•5% of units at 30% AMI
Ownership Projects 10% of units at 80% AMI Payment in lieu
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 5
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2020 Housing Activity Report
Table 2: A ffordable units created and approved
Development Total
Number
of Units
Total Number
of Affordable
Units
Affordability
Level
O bedroom
Affordable
Units
1 bedroom
Affordable
Units
2 bedroom
Affordable
Units
3 bedroom
Affordable
Units
Completed projects
Shoreham 148 30** 50% 4 13 13
4800
Excelsior
164 18 60% 1 10 7
Central Park
West Phase 1
199 6* 60% 1 2 2 1
Elan
Central Park
West Phase 2
164 5* 50% 1 1 2 1
Under construction
The Quentin 79 18 60% 1 5 1 0
Via Sol
(PLACE)
217 22
130
50%
80%
Elmwood 70 17 60%
Parkway
Residences
235 24
6
50%
60%
4 15 8
6
Approved
Luxe
Residential
(approved in
2018)
207 8* 60% 2 3 2 1
Texa-Tonka
Apartments
(approved
2020)
112 22 50% 7 11 2 0
*Central Park West Phase 1 and Phase 2 and Luxe were not subject to the Inclusionary Housing Policy but
voluntarily included affordable units
**Shoreham is a tax credit property resulting in 20% of units affordable at 50% AMI
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 6
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2020 Housing Activity Report
Tenant Protection Ordinance: The city council adopted a tenant protection ordinance in 2018. The tenant
protection ordinance requires a three-month period following the ownership transfer of a NOAH multifamily
residential property during which the new owner would be required to pay relocation benefits to tenants if the
rent is increased, existing residents are rescreened or non-renewals are implemented without cause. NOAH
properties would be defined as buildings where at least 18% of the units have rents affordable to households with
incomes at or below 60% Area Medium Income (AMI).
The ordinance does not prohibit a new owner from taking the management actions listed above; however, the
owner would be required to provide resident relocation benefits if they do take any of those actions during the
tenant protection period and a tenant decides to move as a result. The three month protection period provides a
period of time for residents to work with housing support resources and seek alternative housing if they are facing
unaffordable rent increases, new screening criteria requirements that would be problematic for them, or a thirty
day non-renewal without cause notice to vacate. The ordinance requires the new owner of a NOAH building to
provide notice of the ordinance protections to tenants of affordable housing units within 30 days of the sale of
the building. The three-month tenant protection period begins once the notice has been given to the tenants.
NOAH properties required to comply with the tenant protection ordinance:
•9 in 2018
•3 in 2019
•3 in 2020
Local housing trust fund: The city council approved establishing a local affordable housing trust fund in 2018.
Housing trust funds are distinct funds established by city, county or state governments that receive ongoing
dedicated sources of public funding to support the preservation and production of affordable housing. Housing
trust funds can also be a repository for private donations.
The Minnesota Legislature passed a bill in 2017 that allows local communities to establish housing trust funds.
The housing trust fund may be established by ordinance and administered by the city. Money in a housing trust
fund may only be used to:
•pay for administrative expenses not to exceed 10% of the balance of the fund;
•make grants, loans, and loan guarantees for the development, rehabilitation, or financing of housing;
•match other funds from federal, state, or private resources for housing projects; or
•provide down-payment assistance, rental assistance, and homebuyer counseling services.
The city may finance the fund with any money available to a local government, unless expressly prohibited by
state law. The proposed primary source of funding for the city’s trust fund is an annual budgeted allocation of
HRA Levy funds, which was available beginning in 2020. The local housing trust fund guide was approved in 2019.
Land banking
Land banking is the practice of aggregating parcels of land for future sale or development. The Economic
Development Authority (EDA) has purchased parcels near the Beltline and Wooddale stations to facilitate future
redevelopment which will include housing. The EDA also purchased one single-family home on Minnetonka Blvd
in 2018, one in 2019 and two additional homes in 2020 for future redevelopment purposes.
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 7
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2020 Housing Activity Report
NOAH Preservation (Naturally Occurring Affordable Housing)
Housing staff continued to participate in a Regional Housing Workgroup to review and discuss strat egies for
preservation of NOAH. Additional preservation strategies including the multifamily rental rehab program, Legacy
program and 4D were approved in 2018 and implemented in 2019 to preserve NOAH properties.
Legacy program – 60% AMI and below
Investors are buying NOAH apartment properties across the Twin Cities, often renovating the properties and
increasing the rents. The City of St. Louis Park created the legacy program to encourage multifamily NOAH
property owners in our community who are thinking about selling their property to consider connecting with a
socially driven investor who will preserve the affordability of their development.
The city created a legacy program brochure outlining how an owner can make a difference by providing a legacy
of affordable housing in St. Louis Park. The brochure was mailed to all B and C class multifamily rental properties.
4d - 60% AMI and below
St. Louis Park’s 4d affordable housing incentive program helps preserve affordable homes in the city by providing
financial incentive to qualified apartment owners for state property tax reductions if they agree to keep 20
percent or more of their rental units affordable. The program a lso offers grants to help owners make energy
efficiency and safety improvements to their properties.
This program was developed, approved and marketed in 2018 to preserve affordable housing in St. Louis Park.
One apartment applied for 4d in 2019. No additional 4d properties applied in 2020.
Multifamily rental rehab program - 60% AMI and below
The multifamily rental rehab program provides moderate rehabilitation assistance to eligible owners of St. Louis
Park multifamily residential rental properties with 3 or more units. The targeted properties are NOAH properties
that have been maintained, are in good standing, and wish to make improvements to their properties. Buildings
must be at least 30 years old and meet the St. Louis Park definition of a NOAH property. The maximum loan
amount per qualified rent restricted unit is $5,000 with a maximum loan per building/development of $50,000.
Loans have 0% interest and are due upon the sale of the property. Owners must restrict the rents for a 10-year
term or until the sale or transfer of the ownership of the property.
The goal of this program is to provide a rehab incentive for NOAH properties to improve their property without
raising rents above the 60% AMI rent level. No properties participated in this program in 2019. Staff began
evaluating the program in 2020 and modifying the program in 2021 to generate more interest.
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 8
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2020 Housing Activity Report
3.REMODELING ACTIVITY
Residential permitted activity measures remodeling and maintenance activity. T his section shows historical trends
of remodeling activity. Residential properties include apartments.
Permit Trends
•“Alteration Residential” or G eneral Remodeling
General remodeling work includes residential projects with permit valuations less than $37,500. The average
value per job in 2020 is $8,900. Permits include a wide range of projects including remodeling of existing
spaces, window and door replacement, drain tile, insulation, foundation work, etc.
Chart 1: Trend of General Remodeling Permit s valued under $37,500
•Roofing and Siding A ctivity
Reroofing and residing permits are tracked separately. Almost 60% of the homes in the city had roofs replaced
between 2008 and 2011 due to storm damage and we are starting to see increases in roofing and siding
permits.
Chart 2: Reroofing and Residing Permits
1129 1011 1091 1084 1074 1203 1170
983 996 1044
0
500
1000
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Number of Permits IssuedYear
Maintenance & Minor Remodeling Permits
Alteration Residential (Minor)
761
140 161
131 104 80 107 163 162 296
11773 83 70 47 86 62 85 63 1220
500
1000
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Number of Permits IssuedYear
Reroofing and Residing Permits
Reroof Reside
Study session meeting of March 22, 2021 (Item No. 6)
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2020 Housing Activity Report
•Additions and Major Remodeling
The number of major remodeling permits (valued at more than $37,500) and additions continues to be strong .
The average permit valuation for additions during 2020 is $165,860. The 2020 average valuation for major
remodels is $89,474. The average valuation for additions and major remodels increased compared to 2019.
Chart 3: Number of Addition and Major Remodeling Permits
•Permit Valuation
The following chart s hows historical remodeling permit valuation for additions, major remodels, remodeling
and maintenance , garages/decks, reroofs, and siding . Permits with additional valuations were issued for
plumbing, heating, and electrical work (not shown here).
Chart 4: Permitted Residential Remodeling
48
71 67
73 70 59
67 59 49 49
46
44 53
69 70 65
69 77 82 85
0
40
80
120
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Number of Permits IssuedYear
Addition and Major Remodel Permit Activity
Addition Residential Major Remodels
26.6
$16.8
$21
$25 $23 $25 $26 $28
$25
$31.4
0
20
40
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Permit Valuation -Million $Year
Residential Remodeling Permit Valuation
Study session meeting of March 22, 2021 (Item No. 6)
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City Housing Improvement Services, Loans Trends and Program Descriptions
Home Improvement Services.
The city’s architectural design service, remodeling advisor and Home Energy Squad Visits are great programs for
residents who are considering a remodel or energy improvements to take advantage of. Despite COVID -19 there
was an increase in Home Energy Squad visits in 2020 in part due to promotion by the Environment and
Sustainability division and the CEE Home Energy Squad inter city challenge that St. Louis Park won in 2020.
Chart 5: Technical, Design and Home Energy Visits
Construction Management Plan
Major additions (second story additions or additions of 500 square feet or more), demolitions and new
construction projects need to comply with the Construction Management Plan (CMP). In 2020 the following
neighborhood notifications were sent: 19 major additions , 11 demo/rebuilds , two new builds on vacant land and
one demo only which plans to build in 2021. The total permit valuation for CMP projects in 2020 was $11,239,185.
Chart 6: CMP Activity
29 29 37 41 22 31 33
39
52 47
82 69 69
95
69 76 76 83
51 45
122
153 173
125
170
109 85
130
166
020406080100120140160180200
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Number of VisitsYear
Technical Home Improvement Services
Architect Services Remodeling Advisor Home Energy Visits
32
37 33 33
17 1918
10 9 7 8 11
3 6 3 2
0
23101
2 10
5
10
15
20
25
30
35
40
2015 2016 2017 2018 2019 2020
Number of CMP ProjectsYear
Construction Management Plan Activity
Additions Demo/New Build New Build Demo only
Study session meeting of March 22, 2021 (Item No. 6)
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2020 Housing Activity Report
Study session meeting of March 22, 2021 (Item No. 6)
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2020 Housing Activity Report
•Home Remodeling Fair and Tour
Both the Home Remodeling Fair and Tour were cancelled in 2020 due to the pandemic.
•City Loans and Rebates
The following chart shows the number of Move Up Loans, D iscount Loans and Energy R ebates issued in recent
years. There were five discount loans in 2020. The city buys down the interest rate on the Minnesota Housing
Finance Agency’s community fix up loan with a maximum loan amount of $35,000. In 2020 interest rates
dropped below the rate of the city’s buydown rate so midway through the year no loans needed the city to
buy down the rate. The number of discount loans has remained low the past several years partially due to
other loan options that do not have income limits or require a mortgage on the property and the MHFA fix up
loan offers a loan up to $75,000, but the city buy down was only for loans less than $35,000.
C hart 7: Use of City Financial Incentives
Move-Up in the Park loans are deferred until the sale of the home or forgiven after thirty years.
Table 3: Move-Up Loans Paid off
Year Number of Loans Paid Off Amount of Loans
2014 2 $23,957
2015 4 $78,246
2016 4 $97,970
2017 3 $80,909
2018 3 $66,432
2019 1 $16,250
2020 5 $114,327
Total paid off 2014-2020 $478,091
10 6 6 6 7 10 6 3 6 1
22 26 22 17 13 11 6 5 6 5
83 73
113
166
143
108 101
125
94
112
0
25
50
75
100
125
150
175
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Number Loans -RebatesYear
Loans and Rebates
Move up loans Discount loans Energy Rebates
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 13
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2020 Housing Activity Report
Table 4: Move -Up Participation and Costs
YEAR
Move-Up
Loans
Discount
Loans
Architectural
Design
Services
Remodeling
Advisor
Services
Energy
Efficient
Rebates
Home Energy
Squad
Enhanced
Visits
Down Payment
Assistance Loan Total City Cost
2006 27 $591,264 88 $186,205 102 $22,950 157 $20,410 $820,829
2007 27 $620,000 50 $74,000 62 $12,400 179 $23,270 $729,670
2008 18 $330,937 55 $114,129 49 $11,025 130 $16,900 $472,991
2009 17 $329,650 52 $106,000 12 $7,200 126 $16,380 22 $4,095 $463,322
2010 9 $209,769 64 $86,263 30 $6,750 89 $11,510 42 $7,820 $322,112
2011 10 $226,877 22 $29,213 29 $6,525 82 $10,250 83 $15,465 $288,330
2012* 6 $106,232 26 $31,276 29 $6,525 69 $8,970 73 $13,748 112 $7,320 $174,071
2013 6 $145,071 22 $33,063 37 $8,325 69 $8,970 113 $26,000 153 $10,650 $232,079
2014 6 $138,740 17 $26,079 41 $9,225 95 $12,350 166 $37,575 173 $11,390 $234,223
2015 7 $173,000 13 $17,577 22 $4,950 69 $15,525 143 $37,610 125 $6,250 $254,912
2016 10 $231,057 11 $27,001 31 $6,975 76 $17,100 108 $29,304 170 $8,510 $319,947
2017 6 $137,950 6 $5,907 33 $7,425 76 $17,100 101 $22,951 109 $5,450 $266,173
2018 3 $75,000 5 $12,904 39 $8,775 83 $18,865 125 $30,112 85 $4,250 $149,906
2019 6 $142,350 6 $16,577 52 $11,700 51 $11,475 94 $25,631 130 $6,500 8 $87,621 $301,584
2020 1 $25,000 5 $7,506 47 $10.575 45 $10,125 112 $27,491 166 $8,300 10 $135,428 $224,425
Det ailed descriptions of each Move-Up Program are listed at the end of the report.
Study session meeting of March 22, 2021 (Item No. 6)
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4.AFFORDABLE HOME OWNERSHIP, COMMUNITY DEVELOPMENT BLOCK GRANTS AND EMERGENCY
RENTAL ASSISTANCE
Home ownership - down payment assistance program - 120% AMI and below
The city reviewed and evaluated the Live Where You Work program and determined that it was not
meeting the goal of the program. 24 LWYW loans were issued in the 10 years the program was offered.
The new down payment assistance program (DPA) provides down payment/closing cost assistance to
first -time homebuyers, or those that have not owned a home in the last three years, for purchasing a
home in St. Louis Park. Employees of St. Louis Park businesses may be eligible for additional funds to
encourage them to live where they work. The loan is a zero percent interest deferred loan up to
$15,000, not to exceed five percent of the purchase price. An additional $5,000 is available for
employees of St. Louis Park businesses. Income restrictions apply. Ten DPA loans were administered in
2020 which was the second year of the program. Housing staff began researching an additional
homeownership program to address disparities in homeownership in St. Louis Par k.
Housing Improvement Area (HIA)
The HIA is a fina nce tool to assist with the preservation of the city’s existing townhome and
condominium housing stock. An HIA is a defined area within a city where housing improvements are
made and the cost of the improvements are paid in whole or in part from fees imposed on t he
properties within the area. The Association borrows low int erest money from the city, improvements
are completed, and unit owners repay the loan through fees imposed on their properties and collected
with property tax payments. To date, eigh t HIA’s have been established and nearly fourteen million
dollars of improvements have been made to 1218 units .
The South Cedar Trails HIA was established in 2020. South Cedar Trails is a 32 unit condo association.
South Cedar Trails petitioned the city for the creation of an HIA and $591,845 in funding for the
following improvements to the property: windows and patio doors, garage doors, fencing, landscaping
and drainage, and parking lot replacement.
Emergency Repair Grant (50% AMI)
The emergency repair grant that had previously been funded using CDBG funds is now funded with
housing rehab dollars. Three emergency grants were issued in 2020.
Community Development Block Grant (CDBG) (80% AMI)
The CDBG calendar year runs from July 1 – June 30th. FY20 20 CDBG allocations included:
•$133,482 for the Low-Income Deferred Loan Program administered by Hennepin County
•$30,000 for West Hennepin Affordable Housing Land Trust
West Hennepin Affordable Housing Land Trust, dba Homes Within Reach (HWR) - Two purchased in
2020 (80% AMI)
Homes Within Reach is a program of West Hennepin Affordable Housing Land Trust that purchases
properties, rehabilitates and then sells the home to qualified low to moderate income
households. Buyers pay for the cost of the home only and lease the land for 99 years. City funds are
leveraged with CDBG, Hennepin County Affordable Housing Incentive Fund (AHIF), HOME Partnership,
Metropolitan Council, Minnesota Housing and other funds.
Homes Within Reach uses the community land trust model to create and preserve affordable
homeownership for families in suburban Hennepin County. To date, Homes Within Reach has
purchased, rehabbed and sold 19 homes in St. Louis Park.
2020 Housing Activity Report
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 15
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2020 Housing Activity Report
Twin Cities Habitat for Humanity (80% AMI)
The city has partnered with Habitat over the years to acquire nine blighted properties for rehab or t ear-
down for new construction. The city last assisted Habitat with the purchase of a property in 2011. Twin
Cities is expanding their services to include financing which may serve more St. Louis Park residents than
their traditional program.
EMERGENCY RENTAL ASSISTANCE
Annually the City of St. Louis Park provides funding of $60,000 to the St. Louis Park Emergency Program
(STEP) for emergency rental assistance (not COVID related). STEP provides rental assistance for residents
of St. Louis Park who have an unexpected crisis and cannot pay rent. The crisis mut be resolvable with
the ability to pay next month’s rent. Documentation is requested at the time of application. Priority is
given to those with gross incomes at or below 50% AMI. STEP also receives Community Development
Block Grant funds through the Hennepin County Consolidated RFP for emergency assistance.
The City of St. Louis Park provided additional COVID funding of $108,000 in 2020 for rental assistance to
St. Louis Park residents impacted by the COVID -19 pandemic.
Information about STEP, county and state emergency rental assistance programs was shared with
property owners and managers utilizing the SPARC e-newsletter. The information was also shared on
the city’s website and via social media for residents of St. Louis Park.
Study session meeting of March 22, 2021 (Item No. 6)
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2020 Housing Activity Report
5.HOUSING MATRIX AND DEVELOPMENT
The housing matrix shows the numbers and percentages of housing types, tenure (owner or rental),
affordable units, senior designated units and large single-family homes. The matrix is a guide to evaluate
future housing development proposals.
•11,224 units (44% of units ) in St. Louis Park have a rental license.
•The chart shows percentages of rental vs. owner occupied units over time . Prior to 2017 the chart
reflects homes tead vs. non-homesteaded properties. Starting iIn 2017 the chart uses rental licenses
to count the number of rental properties in St. Louis Park since not all non-homesteaded properties
are rental.
•93% of single-family detached homes were owner occupied (did not have a rental license) and 83%
of condos/townhomes were owner occupied (no rental license)
•The city hired Maxfield Research to update the city’s comprehensive housing analysis. The report
was completed and presented to council in 2018.
Chart 8: Percentage of Owner Occupied Units
*Rental license data used beginning in 2017
Family -size s ingle -family h omes
One of the city’s housing goals is to increase the number of family-size homes available in the city.
“Family-size single-family homes” are being defined as exceeding 1,500 square feet of living space,
having 3 or more bedrooms, 2 or more baths, and at minimum a 2-car garage. According to the
Assessing Department, 2,401 – or 20% – of SLP single family homes meet this threshold. This is an
increase of 30 homes since 2019 (due to additions and demo/rebuilds ). Although this size home is not
considered large when compared to newly constructed housing, in St. Louis Park 74% of single-family
homes have a foundation size less than 1,200 square feet and 46% of single-family homes have less than
1,200 square feet above ground.
93 91 89 89 90 89 93 94 94 93
75 70 67 66 67 67
78 79 81 83
0
50
100
2011 2012 2013 2014 2015 2016 2017*2018*2019 2020Percentage
YEAR
% Owner Occupied Units
Single Family Detached Homes Condos & Townhomes
Study session meeting of March 22, 2021 (Item No. 6)
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2020 Housing Activity Report
Senior housing
•Ten senior (including senior preference) housing rental developments, for a total of 1,028 units
•Hamilton House offers a preference for seniors, but disability is another preference so not all
residents are seniors.
•Three developments are “affordable”. Hamilton House is Public Housing, Menorah West and
Menorah Plaza are multi-family subsidized.
•One development has a percentage affordable. The Elmwood has 17 affordable housing units
required by the inclusionary housing policy.
•Two senior ownership developments, 166 total units
•Total rental and home ownership units 1194
RENTAL
Project name Address No. of
Units
Occp. Date Type of Senior
Hamilton House 2400 Nevada Ave S 108 1976 Public Housing (Senior
Preference)
Menorah West Apts 3600 Phillips Parkway 45 1986 Affordable/Subsidized
Menorah Plaza 4925 Minnetonka
Blvd
151 1981 Affordable/Subsidized,
Assisted Living Offered
Parkshore Place 3663 Park Center Blvd 207 1988 Senior
Knollwood Place 3630 Phillips Parkway 153 1987 Senior
TowerLight 3601 Wooddale Ave 43
29
33
2012 Senior
Assisted Living
Memory Care
Roitenberg Family 3610 Phillips Parkway 52/24 2002 Assisted Living/Memory
Care
Parkwood Shores 3633 Park Center Blvd 68
23
2001 Assisted Living
Memory Care
Comfort Residence
at St. Louis Park
7115 Wayzata Blvd 12
10
2014 Assisted Living
Memory Care
The Elmwood 5605 W 36th St 53
17
Under
construction.
Expected
completion
2021
Market rate senior
17 affordable senior
TOTAL RENTAL UNITS: 1028 units
HOME OWNERSHIP
Project name Address No. of
Units
Occp. Date Type of Senior
Aquila Commons 8200 W 33rd St 106 2012 Coop
Village in the Park 3600 Wooddale 60 2007 Senior Living
TOTAL OWNER UNITS 166 units
Study session meeting of March 22, 2021 (Item No. 6)
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2020 Housing Activity Report
Affor da ble H ousing
The Metropolitan Council sets the affordability limits for owner ship and rental housing a t 80% of the
area median income for both renta l a nd ownership housing. I n 2020, t he metro area media n income
(AMI) for a household of four is $103,400. Under t hese limit s, a family of four c an earn up to $78,500
(80% AMI) to qua lify for affordable housing. Below is a cha rt showing t he number of market -rate
affordable (naturally-occurring affordable housing ) multifamily rental units in St. L ouis Park with
affordable levels from 30% AMI to 80% AMI ba sed on the Maxfield Re search update from 2017. Funding
has been allocated to update the study in 2021.
Among the over 7,000 market-rate units that were inventoried by Maxfield Research by unit mix and
monthly rents, only 7.9% of the units are naturally-occurring affordable housing to householders at 50%
AMI. However, together with 41.4% of the naturally-occurring units affordable at 60% AMI, 49.3% of the
market-rate rental housing inventory is naturally-occurring affordable at 50% to 60% AMI.
The St. Louis Park Housing Choice Voucher (HCV) program has 342 vouchers that can be utilized in market-
rate rentals reducing the rents to 30% of a voucher holder’s income, and the average HCV income is below
30% AMI.
Table 5: Multifamily market -rate rental units by AMI from 2017
# of bedrooms 30% AMI 50% AMI 60% AMI 80% AMI
Efficiency 0 106 204 123
1 bedroom 20 370 2466 807
2 bedroom 19 198 879 929
3 bedroom 6 20 48
Total 39 680 3559 1906
Source: Maxfield Research & Consulting, LLC (2017)
Affordable housing rental projects
An affordable housing storyboard map is available on the city website which includes all developments
with affordable units under the inclusionary policy since its inception in 2015. A dashboard identifying
data on additional affordable properties in St. Louis Park is in development. These images are as of
March 2021. The community development department also has a map of all development projects
including projects that do not have affordable units.
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 19
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2020 Housing Activity Report
Study session meeting of March 22, 2021 (Item No. 6)
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2020 Housing Activity Report
Affordable homeownership
•The 2020 affordable ownership purchase price is $293,500 or less which is the affordable
homeownership rate for households at 80% AMI . The matrix also shows the data for single family
homes, condos and townhomes valued at $228,500 or less which is the 60% AMI affordable
ownership purchase price .
•In 2020, 7,363 homes are considered affordable at or below 80% AMI based on valuation data from
assessing which is 52% of the owner occupied (no rental license) single-family homes, condos and
townhomes in St. Louis Park. This is a n increase of 2,394 affordable units compared to 2019. The
affordable ownership purchase price increased by $39,000 over 2019. The Metropolitan Council
includes the following assumptions in determining the affordable ownership price:
o Fixed-interest, 30-year home loan
o Interest rate of 3.625%
o A 29% housing debt -to-household income ratio
o A 3.5% down payment
o A property tax rate of 1.25% of the property sales price
o Mortgage insurance at 0.85% of unpaid principal
o $100/month for hazard insurance
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 21
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2020 Housing Activity Report
Table 6: St. Louis Park Housing Matrix
December 31, 2020
Housing Units by Type Large Single Family Homes, Affordable, and Senior Housing
Housing
Type Housing Units
Owner
Occupied (No
Rental
License)
Rental
Licenses
Family sized
single family
homes over
1500 square
feet
2020
Affordable
Market Rate
(NOAH) SF,
Condo and
TH Units
60% | 80%
2017 Maxfield
Research
Affordable
Market Rate
(NOAH)
Rental Units
60% | 80%
Rent
restricted
units *Does
not include
tenant based
vouchers
Senior
Designated
Single
Family
Detached 11,708 46% 10,880 828 2401 3823 4450 37
Duplex 430 2% 125 305
Condos
and
townhomes 3557 14% 2943 614 2367 2913 60
Apartments 9477 37% 9477 4278 6184 499 1028
COOPs 114 <1% 114 106
Totals 25,286 14,062 56% 11,224 4% 2401 21%
6190
44%
7363
52%
4278
46%
6184
67% 536 5% 1194 5%
% of SF
Homes
% of owner
occupied SF,
Condo & TH
% of
Multifamily % of Rental
% of Total
Housing Units
In 2020, the rental unit numbers are coming directly from the rental licenses through the inspections department. The percentage of owner occupied (no rental license)
units to rental (units with a rental license) units is 56% to 44% of units with a rental license.
*Although there was a decrease in rental apartments in 2019, hundreds of additional units were under construction in 2019 so there will be an increase in 2020.
Met Council revised the affordable housing income standard s and now considers both rental and owner occupied housing units affordable at 80% AMI. This chart shows
all single family homes, condos and townhomes with an assessed value based on 60% and 80% AMI. The chart also shows multifamily rental units affordable at 60%
AMI and 80% AMI based on Maxfield Research data. More data is on the previous page related to affordable rents based on the number of bedrooms in a unit.
Rent restricted units include project based vouchers, public housing, and inclusionary housing units. This does not include the tenant based vouchers (Section 8), Kids
in the Park, or Stable HOME vouchers which are not tied to a specific unit.
Data source: St. Louis Park Community Development, Building and Energy, and Assessing departments and Maxfield Research & Consulting.
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 22
Page 22
2020 Housing Activity Report
6.FORECLOSURES
Foreclosures are measured by the number of sheriff sales. The number of residential foreclosures in St.
Louis Park and throughout Hennepin County has been declining since 2010.
Chart 9: St. Louis Park Residential Foreclosures by Year
The trend chart below shows foreclosure by housing type over time.
Chart 10: Residential Foreclosures by Housing Type
*Townhome & DB = Townhome and Double Bungalow/Duplex
163
122
59 54 47
31 36
19 15
40
40
80
120
160
200
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Number of Sherrif Sales Year
Residential Foreclosures by Year
109
82
45 39
28 21
25
16 11 3
40 30
9 14 15
6
9
2 4 18
10 5 1 4 4 2 1 0 00
40
80
120
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Number Sherrif SalesYear
Residential Foreclosures by Housing Type
Single Family Detached Condos Townhome & DB
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 23
Page 23
2020 Housing Activity Report
7.ST. LOUIS PARK HUD FEDERALLY FUNDED HOUSING PROGRAMS and rental assistance
The St. Louis Park Housing Authority (HA) administers programs that ensure the availability of safe and
desirable affordable housing options in the St. Louis Park community. These programs include the Public
Housing program, Housing Choice Voucher rental assistance program, the fa mily self-sufficiency
program, Stable HOME and Kids in the Park programs . The HA currently serves over 560 eligible, low-
income households through their housing programs.
Public Housing – Restricted to households at or below 80% AMI; however, the majority of public
housing residents have incomes below 50% AMI, with a significant number below 30% AMI
The HA owns Hamilton House, a low-rise apartment building (108 one -bedroom units and 2 two-
bedroom caretaker units) built in 1975, and 37 scattered site single-family units (3 to 5 bedrooms)
acquired or cons tructed between 1974 and 1996. Hamilton House is designated for general occupancy;
however, priority is given to elderly and disabled applicants . The single-family scattered units house
families with children. The HA also holds the HUD Annual Contributions Contract (ACC) and maintains a
waiting list for 12 two-bedroom Public Housing apartment units located at Louisiana Court.
The average annual income for households at Hamilton House is $16,375 which is below 30% AMI. The
average income for the scattered site single family homes and Louisiana Court MHOP units is $38,000.
Family sizes in Louisiana Court and the scattered site houses range from 2 to 11 people per home. 52%
of the households have incomes below 30% AMI and 31% have incomes between 31 and 50% AMI.
Annual income does not count some income that is excluded per HUD regulations. Public housing
residents pay 30% of their income towards rent. The 2020 annual budget for Public Housing was
$1,136,600 and $269,974 for the 2020 Capital Fund Program (CFP).
Table 7: Public Housing
Public Housing Total
Units
1-BR 2-BR 3-BR 4-BR 5-BR
Hamilton House 108 108
Scattered Site Single Family 37 17 17 3
Louisiana Court,
Metropolitan Housing
Opportunity (MHOP) Units 12 12
Total (bedroom size) 108 12 17 17 3
Total 157
COVID response
The CARES Act was signed into Law March 27, 2020, providing the Department of Housing and Urban
Development (HUD) with broad authority to waive statutes and regulations for the Public Housing (PH)
and Housing Choice Voucher (HCV) programs. These waivers provide administrative flexibility and relief
to Housing Authorities (HA) in response to the COVID -19 pandemic. Use of these waivers for the PH and
HCV programs is at the discretion of the HA. However, HUD strongly encouraged housing authorities to
utilize any and all waivers and alternative requirements as necessary to keep PH and HCV programs
operational.
In addition to HUD waivers the HA is complying with the state and federal eviction moratorium.
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 24
Page 24
2020 Housing Activity Report
Public Housing waivers
•Family income and composition: annual examination, income verification requirements — HA
will allow self-certification of income and family composition and conduct recertifications
remotely.
•Family income and composition: interim examinations — HA will allow self-certification of
income and family composition and conduct interim certifications remotely.
•Family self-sufficiency (FSS) contract of participation; contract extension — HA will allow
extension of FSS contracts for COVID -19 related circumstances.
•Adoption of tenant selection policies — HA is applying waiver to allow admissions and continued
occupancy policy (ACOP) to be revised on a temporary basis without board approval. Formal
adoption must occur by July 31, 2020.
•Community service and self-sufficiency requirement (CSSR) — HA will suspend the community
service requirement until March 31, 2021.
•R eview and revision of utility allowance — The St. Louis Park HA utilizes metro HA’s utility
allowance. Waiver will be implemented if needed.
•Tenant notifications for changes to project rules and regulations — Advanced notice to tenants
of rule changes will be waived except for any changes related to tenant charges.
•The housing authority will allow families an additional opportunity to select an income -based or
flat rent.
Housing Choice Voucher waivers
•Family income and composition: annual examination, income verification requirements — HA
will allow self-certification of income and family composition and conduct recertifications
remotely.
•Family income and composition: interim examinations — HA will allow self-certification of
income and family composition and conduct interim certifications remotely.
•Family self-sufficiency (FSS) contract of participation; contract extension — HA will allow
extension of FSS contracts for COVID -19 related circumstances.
•Administrative plan — HA is applying waiver to allow the administrative plan to be revised on a
temporary basis without board approval. Formal adoption must occur by July 31, 2020.
•Information when family is selected: PHA oral briefing — HCV briefings are being conducted
remotely using mail and telephone.
•Term of voucher: extensions of term — HA will allow a 30-day extension of the voucher term
beyond current adopted policy.
•Absence from unit — HA will waive current policy requirements related to a family member
being absent from the unit due to COVID -19 related circumstances.
•Utility allowance schedule: required review and revision — The St. Louis Park HA utilizes metro
HA’s utility allowance. Waiver will be implemented if needed.
•HQS inspections: initial, biennial, interim, PBV turnover and contract substitutions, inspection
requirements — HA will waive the requirement for conducting an on-site Housing Quality
Standard (HQS) inspections prior to putting a unit under or remaining under housing assistance
payments (HAP) contract, and will allow owner’s certification that the owner has no reasonable
basis to have knowledge that life-threatening conditions exist in the unit. Waivered inspections
will be conducted prior to Oct. 31, 2020.
•HQS: housing quality standards; space and security — HA will waive spa ce requirements for a
participant that needs to add a member to the household due to a COVID -19 related
emergency.
•Extension of deadline for programmatic obligation and expenditure of capital funds — Although
the HA anticipates obligating and expending capital funds within the time period allocated by
HUD, the extension will be utilized if needed for COVID -19 related reasons.
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 25
Page 25 2020 Ho using Activity Report
Housing Choice Voucher Program (HCV) – 50% AMI or below
The HA is allocated a total of 342 Housing Choice Vouchers from HUD . This rent assistance program
provides rent subsidies for low-income individuals and families in privately owned, existing market rate
housing units. The rent subsidy is paid directly to the owner of the rental property by the HA with funds
provided by HUD. The HA administers tenant -based, project -based and newly awarded special program
vouchers as noted below. 54 vouchers of the HA’s allocation are designated for use in four privately
owned developments (Excelsior & Grand, Vail Place, Wayside, and Perspectives ) and are referred to as
project -based vouchers. The average income of voucher holder households in St. Louis Park is $15,950
which is below 30% AMI. HCV participants pay 30% of their income towards rent and can choose to pay
up to 40%. The 2020 annual budget for HCV was $2,287,402. Despite the number of HCV units allocated
to a Housing Authority by HUD, HAs are limited in the number of vouchers that can be administered by
the budget authority allocated by HUD.
New vouchers awarded to St. Louis Park Housing Authority – 50% AMI and below
Family Unification Vouchers (FUP)
The Housing Authority was awarded 12 Family Unification Vouchers (FUP) at the end of 2019 and an
additional 15 units in 2020. FUP is a program in which Housing Choice Vouchers (HCVs) are provided in
order to lease decent, safe, and sanitary housing in the private housing market to:
•Families for whom the lack of adequate housing is a primary factor in either: the imminent
placement of the family’s child(ren) in out of home care or the delay in the discharge of the
child(ren) to the family from out of home care. There is no time limitation on family FUP
vouchers , or
•Youth who are at least 18 years or and not more than 24 years old who: left foster care at age
16 or older to will leave foster care within 90 days and are homeless or at risk of homelessness.
FUP vouchers used by youth were previously limited by statute to 36 months of housing
assistance. The CARES Act has changed the limit to 60 months
The HA is partnering with Hennepin County on this program. Applicants are provided through the
Coordinated Entry process. 17 FUP vouchers were utilized in 2020.
Mainstream
The Housing Authority was awarded 7 additional Mainstream vouchers via the CARES Act in 2020 adding to
the 8 mainstream vouchers awarded previously. These vouchers provide vouchers to assist non-elderly
persons with disabilities who are transitioning out of institutional or other segregated settings, at serious
risk of institutionalization, homeless, or at serious risk of homelessness. It was designed to further to
the goals of the Americans with Disabilities Act (ADA) by helping persons with disabilities live in the most
integrated setting. Families or individuals on with a Mainstream voucher must have a household member
at least 18 years of age and less than 62 years of age with a disability at the time of eligibility determination.
11 mainstream vouchers were utilized in 2020.
The HA is partnering with Hennepin County for referrals for the 7 additional vouchers that were awarded.
The population being served by this partnership includes those that meet eligibility requirements and were
not able to stay in shelter due to COVID 19 concerns and had to be placed in hotels.
Lou Park Lou Park is an apartment complex in St. Louis Park owned and managed by Bigos Management.
Bigos notified tenants that in 2018 they would be completing an 8bb contract transfer of their 32 project-
based units to another property. As of July 1, 2019, tenants were eligible to request to move to the new
property or remain at Lou Park using a tenant protection or enhanced voucher administered by the St. Louis
Park Housing Authority. This added 32 additional vouchers to the HAs allocation. Initially,
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 26
Page 26
2020 Housing Activity Report
31 tenants chose to utilize the tenant protection voucher at Lou Park. As of December 31, 2020, 26
remained at Lou Park, 5 had chosen to use their voucher to move to a different complex .
Perspectives
Perspectives, Inc. is a community non-profit organization located in St. Louis park that provides
supportive housing to low income families that are homeless and are dual diagnosed (chemical and
mental health diagnosis). Perspectives is one of the largest therapeutic supportive housing programs for
women and children in Minnesota, housing approximately 75 women and 130 children and has been
operational in St. Louis Park for 28 years.
HUD notified Perspectives in 2020 that their recent application for funding renewal of the rental subsidy
was not selected for funding and their funding would expire 9/30/2020.
Perspectives, Inc. made a request to the HA for an allocation of twelve (12) PBV units; 2 one bedroom
and 10 two-bedroom units. These PBV units would replace current income-based rent subsidies funded
through HUD’s Continuum of Care Permanent Rental Assistance program. The HA board approved the
additional project based vouchers a nd the approval of the contract at the September 2020 meeting.
The effective date of the contract for the PBV funding is October 1, 2020 and the initial term of the
contract will be 5 years. As of December 31, 2020 6 of the 12 units had been filled by Per spectives.
Wayside
The HA has provided PBA to Wayside House properties located at 1341 and 1349 Jersey Avenue South
since 2003. Wayside provides supportive housing and programming for women in recovery.
This year, Perspective’s Shelter Plus Care grant was not renewed, and as result, the rental assistance for
two of Wayside’s units was terminated on September 30. Due to this loss, Wayside has requested that
the HA increase the number of PBA units allocated to them from fifteen to sixteen units. Wa yside will
self-subsidize the rents on four of their units. The HA board approved a contract amendment at its
November meeting to allocate Wayside Housing a 16th Project Based Voucher and to extend the project
based contract for an additional 5 years.
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 27
Page 27
2020 Housing Activity Report
Table 8: HCV Lease-Up Report
Housing Choice Voucher – Lease Up Report
December 31, 2020
Units
HUD Allocated Vouchers 342
Vouchers Issued (Executed, Pending, Outstanding and
Leased Project Based)
330
Unleased Project -Based (PB) 6
Vouchers Outstanding 15
Executed St. Louis Park Contracts:
Housing Choice Vouchers 148
Tenant Protection Vouchers 26
(Lou Park)
Excelsior & Grand 18
Vail Place 8
Wayside Supportive Housing 16
Perspectives 6
Mainstream 11
FUP 15
259
Port -Ins 34
Port -Outs 62
Pending Port -Outs 8
Executed and Pending 330
Total Administered 309
Summary:
% Utilized, Pending, Outstanding & Unleased PB 96%
Stable HOME Rental Assistance Program – 50% AMI
The Stable HOME program provides rent assistance to low-income singles and families who were
homeless or would otherwise be at risk of homelessness. Rent assistance is limited to three years.
During the three years, participants must establish good rental histories. They must also work to
improve their earnings enough to where they do not need rental assistance. The program is
administered by the HA, but participants are free to choose a rental unit anywhere in Hennepin County
except Minneapolis. Participants are referred to the program by Hennepin County. This program is
funded with federal HOME funds allocated to the county. 57 families throughout suburban Hennepin
County were served by this program 2020.
Kids in the Park Rent Assistance Program – 50% AMI and below – city funded
Kids in the Park provides rent assistance to households with school-age children for up to four years .
Participants receive a flat monthly rental assistance subsidy that decreases annually over the four-year
period. Eligible households must have an income at or below 50% of the area median income, a child
attending school in St. Louis Park, one parent or guardian that works a minimum of 28 hours per week,
live in rental housing in St. Louis Park and comply with their lease. Families with disabled and elderly
heads of household do not need to comply with the work requirement and due to COVID 19 the HA
temporarily waived the 28 hour per week work requirement for all households. The program was
developed in partnership with the St. Louis Park Emergency Program (STEP) and the St. Louis Park
School District. The Kids in the Park program began serving 9 families in December 2017. Funding was
increased for 2018 to serve 14, 2019 served 17 families and in 2021 that number is increasing to 20
families .
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 28
Page 28
2020 Housing Activity Report
8. PROGRAM DESCRIPTIONS
Technical, Design , and Conservation Services
Architectural Design Service – no income restrictions
This service provides an architectural consultation for residents to assist with brainstorming remodeling
possibilities and to raise the awareness of design possibilities for expansions. Residents select an
approved architect from a pool developed in conjunction with the MN Chapter of the American Institute
of Architects. All homeowners considering renovations are eligible for this service; however, to ensure
committed participants , residents make a $25 co-pay.
Remodeling/Rehab Advisor – no income restrictions
The intention of this service is to help residents improve their homes (either maintenance or value-
added improvements) by providing technical help before and during the construction process. All
homeowners are eligible for this service regardless of income. Resident surveys indicated that
homeowners valued the service and would recommend it to others. The city contracts with the Center
for Energy and Environment (CEE) for this free service to homeowners.
Home Energy Squad Enhanced Visit – no income restrictions
Home Energy Squad Enhanced program is a comprehensive residential energy program designed to help
residents save money and energy and stay comfortable in their homes . The program which began in
March 2012, is administered by the Center for Energy and Environment (CEE). The city pays $50 per
resident visit which is leveraged with funds from Xcel Energy, Center Point Energy and CEE. The cost per
resident is $50 per enhanced visit. Free home energy visits are available to low income households.
The home energy squad consultant evaluates energy saving opportunities and installs the energy-
efficiency materials the homeowner choses including: door weather stripping, water heater blanket,
programmable thermostat, compact fluorescent light bulbs, high efficiency shower heads and faucet
aerators. They will also perform diagnostic tests including a blower door test to measure the home for
air leaks, complete an insulation inspection, safety check the home’s heating system and water heater
and help with next steps such as finding insulation contractors . All single family and duplex homeowners
are eligible. Renters qualify for the installed visit ($30) without diagnostic tests. The Home Energy Squad
Enhanced visits qualified residents for CEE’s low interest financing and utility rebates and they also
notify residents of the city loan and rebate opportunities .
Annual Home Remodeling Fair
The cities and school district community education departments of St. Louis Park, Hopkins, Minnetonka ,
and Golden Valley co-sponsor the annual home remodeling fair. The fair provides residents an
opportunity to attend seminars, talk with vendors and city s taff about permits, zoning, home
improvement loans, and environmental issues related to remodeling. The fair is a self-sustaining event
and vendor registration fees cover the costs.
Home Remodeling Tour
The annual tour is designed to meet the housing goal to remodel and expand single-family owner-
occupied homes. The self-guided tour of six homes provides a showcase of a variety of home remodeling
projects to provide ideas, information, and inspiration to other res idents considering remodeling.
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 29
Page 29
2020 Housing Activity Report
Construction Management Plan
The city recognizes that many households are looking for larger homes and supports keeping families in
the city. As a result, significant additions and/or tearing down of existing homes and rebuilding larger
homes is becoming more common. Because St. Louis Park is a fully built community, these major additions
and construction of new homes impacts the surrounding neighbors.
Effective November 15, 2014, major additions (second story additions or additions of 500 square feet or
more), demolitions and new construction need to comply with a Construction Management Plan (CMP) per
City Code 6-71. Major additions, tear downs and new construction are required to send a written
neighborhood notification to neighbors within 200 feet of the property. Demolitions and/or new
construction also require a neighborhood meeting and signage.
Financial Programs
In an effort to encourage growing families to stay in St. Louis Park the city has developed and implemented
a number of programs toward this effort.
Discount Loan Program – serves households with incomes at or below $149,000
This program encourages residents to improve their homes by “discounting” the interest rate on the
Minnesota Housing Finance Agency (MN Housing) home improvement loans. Residents must have a
household income of $149,000 or less. Eligible improvements include most home improvement projects
with the exception of luxury items such as pools and spas. The city contracts with CEE for loan
administration. Implementation of discounting of MHFA loans began in late 1999 as a pilot project. The
city reduced the interest rates to 3% for households with incomes under $100,000 and 4% for incomes
between $100,000 and $149,000.
Move – Up Transformation Loan – 120% AMI
The purpose of this loan is to encourage residents with incomes at or below 120% of median area income
($120,000 for a family of one - four) to expand their homes. The program provides deferred loans for 25%
of the applicant’s home expansion project cost, with a maximum loan of $25,000. The revolving loan pool
will continue to fund future expansions.
This loan requires significant upfront work by the residents, from deciding on the scope of the project to
selecting contractors. Loan guidelines are:
•Only residents making significant expansions are eligible. The minimum project cost must exceed
$35,000.
•The maximum loan amount is $25,000.
•The loan has 0% interest with a carrying cost fee of 3% paid by the borrower which covers t he
lender’s administrative fee.
•Loan is forgiven after 30 years if homeowner continues to live in the home.
Green Remodeling Program & Energy Rebates – no income restrictions
The Green Remodeling Program includes the Home Energy Squad Enhanced home visit program, use of
energy rebates, and access to CEE’s Home Energy Loan. The city provides a match of 50% of gas and
electric utility rebates for energy efficient furnaces, water heaters, air conditioners and qualifying air
sealing and insulation. CEE also provided low interest loans to residents making qualifying energy
improvements and St. Louis Park residents can take advantage of this loan. This energy improvement loan
has no income restrictions and there is no cost to the city.
Emergency Repair Grant
The city offers emergency repair grants for households below 50% area median income to make immediate
emergency repairs such as furnace replacement, roof repair, plumbing or electrical emergencies, etc. This
program is administered by Sustainable Resources Center (SRC).
Study session meeting of March 22, 2021 (Item No. 6)
Title: 2020 housing activity report Page 30
Meeting: Study session
Meeting date: March 22, 2021
Written report: 7
Executive summary
Title: Body worn camera annual update
Re commended action: Review the body worn camera program and revisions to policy .
Policy consideration: Does council approve of the direction of the body worn camera (BWC)
program?
Summary: Council affirmed the police department body worn camera policy on Sept. 4, 2018
and passed Resolution 18-134 directing Chief Harcey to report back to council in six months and
annually thereafter regarding:
•General reflections and learnings from the police department on the implementation
and use of BWC’s
•Criteria tracked to include, at a minimum, hours of utilization, officer compliance, how
often reports are filed to document when cameras are not turned on, how often and
under what circumstances officers review footage prior to writing reports, requests to
view footage and police department response
•Any police department proposed changes or updates to the use of BWC's policy
•Other information that would be useful to the city council and the public to help
understand and evaluate this initial trial and implementation
The report includes information requested by council in Resolution 18-134, based upon the use
of the body worn came ras from Jan. 1, 2020 through Dec. 31, 2020.
Financial or budget considerations: None at this time.
Strategic priority consideration: St. Louis Park is committed to creating opportunities to build
social capital through community engagement.
Supporting documents: Discussion
Re solution 18-134
Body-worn camera policy
In-car camera policy
Prepared by: Mike Harcey , police chief
Approve d by: Tom Harmening, city manager
Study session meeting of March 22, 2021 (Item No. 7) Page 2
Title: Body worn camera annual update
Discussion
Background: The police department researched and sought community input to develop a
BWC policy that reflects the needs of the community. Council affirmed the BWC policy on Sept.
4, 2018 and pass ed Resolution 18- 134 directing Chief Harcey to report back to council in six
months and annually thereafter. The police department BWC program went live on April 10,
2019 utilizing 60 body worn cameras and 19 fleet cameras. The information provided in the
following section is based upon the use of the BWCs in calendar year 2020 and corresponds to
the information requested by council in Resolution 18-134.
1.General reflections and learnings from the police department on the implementation
and use of BWC’s.
Sin ce implementation , police department staff noted the following reflections and
learnings while utilizing the body worn and fleet cameras:
•Use – officers are erring on the side of caution and using BWCs more often than
required by policy.
•Records management – the current records management system on Evidence.com
has simplified our information sharing between partner agencies, city, and county
prosecutors. There have been no significant resource impacts to date from public
data requests.
•Internal compliance audits – the trimester supervisory audits have proven to be an
effective tool to ensure compliance with policy as well as comprehension of training.
2.Criteria tracked to include, at a minimum, hours of utilization, officer compliance, how
often reports are filed to document when cameras are not turned on, how often and
under what circumstances officers review footage prior to writing reports, requests to
view footage and police department response .
Sin ce implementation, officers utilized the body worn and fleet cameras for 20,963
hours collecting 84,634 evidence items - equaling 37.6 TB of data. In 2020, officers
utilized the body worn and fleet cameras for 11,322 hours collecting 43,919 evidence
items - equaling 20.3 TB of data. Officers responded to 50,668 calls for service in 2020
and wrote 7,607 reports during that same time period. Officers self -reported their
failures to activate their body worn cameras when required 13 times by completing the
report required by policy. In 2020, s upervisors conducted 127 individual audits covering
1,270 random videos and found one additional, unreported time that an officer failed to
activ ate their body worn camera when required by policy (0.07% audit failure rate). In
total, when compared to the number of body-worn and fleet videos for 2020, officers
complied with policy 99.97% of the time. In addition, officers reported they reviewed
their video 238 times (3.1%) prior to completing their police reports. The police
department received only six public requests to review video in 2020. Two req uests
were fulfilled by viewing on site.
Study session meeting of March 22, 2021 (Item No. 7) Page 3
Title: Body worn camera annual update
3.Any police department proposed changes or updates to the use of BWC's policy.
Both the body worn camera and in-car camera policies were modified in September
2020 to further clarify when recorded video can be accessed, shared, viewed and/or
downloaded.
The revisions for both policies was the same and as follows:
F.Access by peace officers and law enforcement employees. No employee may
have access to the department’s BWC data except for legitimate law
enforcement or data administration purposes:
1. Officers may access, share , and view and download stored BWC video only
when there is a business need for doing so, including the need to defend against
an allegation of misconduct or substandard performance. Officers may review
video footage of an incident in which they were involved prior to preparing a
report, giving a statement, or providing testimony about the incident. Officers
shall not use the fact that a recording was made as a reason to write a less
detailed report.
2. Personal devices shall not be used to capture, record, transfer, store or view
any BWC videos, photos or other evidence.
3. Supervisors may view recordings at any time they are making inquiry into an
alleged complaint, performance issue, or policy violation.
1/14/20209/15/2020
Body-Worn Cameras Policy Page 1
City of St. Louis Park, Minnesota
Use of Body-Worn Cameras Policy
Purpose
The primary purpose of using body-worn -cameras (BWCs) is to:
A.Capture evidence arising from a police-citizen contact.
B.Assist with accurate report writing.
C.Allow for transparency and accountability in policing and protect the civil rights of
the community.
This policy sets forth guidelines governing the use of BWCs and administering the data that
results. Compliance with these guidelines is mandatory, but it is recognized that officers must
also attend to other primary duties and the safety of all concerned, sometimes in circumstances
that are tense, uncertain, and rapidly evolving.
Objectives
The St. Louis Park Police Department has adopted the use of portable audio/video recorders to
accomplish the following objectives:
A.To enhance officer safety.
B.To document statements and events during the course of an incident.
C.To enhance the officer’s ability to document and review statements and actions for
both internal reporting requirements and for courtroom preparation/presentation.
D.To preserve audio and visual information for use in current and future investigations.
E.To enhance the public trust by preserving factual representations of officer-citizen
in teractions in the form of audio-video recording.
F.To promote the civility of police-civilian encounters
G.To provide objective evidence to help resolve civilian complaints against police
officers and the City of St. Louis Park.
H.To protect the civil rights of the community.
I.To assist with training and evaluation of officers.
Policy
It is the policy of this department to authorize and require the use of department-issued BWCs as
set forth below, and to administer BWC data as provided by law.
Scope
This polic y governs the use of BWCs in the course of official duties. It does not apply to the use
of squad-based (dash-cam) recording systems . The Chief of Police or the c hief’s designee may
Page 4 Study session meeting of March 22, 2021 (Item No. 7)
Title: Body worn camera annual update
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supersede this policy by providing specific instructions for BWC use to individual officers, or
providing specific instructions pertaining to particular events or classes of events, including but
not limited to political rallies and demonstrations where th eir use might be perceived as a form of
political or viewpoint-based surveillance. The c hief or designee may also provide specific
instructions or standard operating procedures for BWC use to officers assigned to specialized
details, such as carrying out duties in courts or guarding prisoners or patients in hospitals and
mental health facilities. In the event the chief does supersede policy by providing specific
instructions for use, a written report will be submitted to the City Manager.
Definitions
The f ollowing phrases have special meanings as used in this policy:
A.MGDPA or Data Practices Act refers to the Minnesota Government Data Practices Act,
Minn. Stat. § 13.01, et seq.
B.Reco rds Retention Schedule refers to the General Records Retention Schedule for
Minnesota Cities.
C.Law enforcement-related information means information captured or available for
capture by use of a BWC that has evidentiary value because it documents events with
respect to a stop, arrest, search, citation, or charging decision.
D.Evidentiary Value means that the information may be useful as proof in a prosecution or
defense of a criminal action, related civil or administrative proceeding, further
investigation of an actual or suspected criminal act, or in considering an allegation
against a law enforcement agency or officer.
E.General Citizen Contact means an informal encounter with a citizen that is not and does
not become law enforcement-related or adversarial, and a recording of the event would
not yield information relevant to an ongoing investigation. Examples include, but are not
limited to, assisting a motorist with directions, summoning a tow truck , or receiving
generalized concerns from a citizen about crime trends in his or her neighborhood.
F.Adversarial means a law enforcement encounter with a person that becomes
confrontational, during which at least one person expresses anger, resentment, or hostility
toward the other, or at least one person directs toward the other verbal conduct consisting
of arguing, threatening, challenging, swearing, yelling, or shouting. Encounters in which
a citizen demands to be recorded or initiates recording on his or her own are deemed
adversarial.
G.Unintentionally recorded footage is a video recording that results from an officer’s
inadvertence or neglect in operating the officer’s BWC, provided that no portion of the
resulting recording has evidentiary value. Examples of unintentionally recorded footage
include, but are not limited to, recordings made in station house locker rooms, restrooms,
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and recordings made while officers were engaged in conversations of a non-business,
personal nature with the expectation that the conversation was not being recorded.
H.Official duties, for purposes of this policy, means that the officer is on duty and
performing authorized law enforcement services on behalf of this agency.
Training
All users of a BWC will be trained on the cameras operation and this policy prior to deploying
one.
Use and Documentation
A.Officers may use only department-issued BWCs in the performance of official duties for
this agency or when otherwise performing authorized law enforcement services as an
employee of this department.
B.All officers working uniform patrol, uniform special details, traffic duties, and uniform
school resource officer duties shall use a BWC unless permission has been granted by a
supervisor to deviate from this clause. Plain clothes investigators/officers and
administrators are allowed to use BWC when interacting with citizens, when appropriate.
C.Of ficers who have deployed a BWC shall operate and use them consistent with this
policy. Officers shall conduct a function test of their issued BWCs at the beginning of
each shift to make sure the devices are operating properly. Officers noting a malfunction
during testing or at any other time shall promptly report the malfunction to the officer’s
supervisor. As soon as is practical, the malfunctioning BWC shall be put down for
service and the officer should deploy a working BWC. If a BWC malfunctions while
recording, is lost, or damaged the circumstances shall be documented in a police report
and a supervisor shall be notified. Supervisors shall take prompt action to address
malfunctions and document the steps taken in writing.
D. Off icers should wear their BWC in a conspicuous manner at the location on their body
and manner specified in training.
E.Of ficers must document BWC use and non-use as follows:
1.Whenever an officer makes a recording, the existence of the recording shall be
documented in the records management system, an incident report, or a citation if
completed.
2.Whenever an officer fails to record an activity that is required to be recorded under
this policy or captures only a part of the activity, the officer must document the
circumstances and reasons for not recording in the records management system or
incident report. Supervisors shall review these reports and initiate any corrective
action deemed necessary.
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F.The department will maintain the following records and documents relating to BWC use,
which are classified as public data:
1.The total number of BWCs owned or maintained by the agency;
2.A daily record of the total number of BWCs actually deployed and used by officers
and, if applicable, the precincts in which they were used;
3.The total amount of recorded BWC data collected and maintained; and
4.This policy, together with the Records Retention Schedule.
General Guidelines for Recording
A.This policy is not intended to describe every possible situation in which the BWC should
be activated, although there are many situations where use of the BWC is appropriate.
Officers should activate the BWC any time the user believes it would be appropriate or
valuable to record an incident.
B.Officers shall activate their BWCs when anticipating that they will be involved in,
become involved in, or witness other officers of this agency involved in a pursuit, Terry
frisks, a traffic stop of a motorist, an investigative stop of a pedestrian, search es , seizures,
arrests, response to resistance incidents, any encounter that becomes in any way hostile,
confrontational, or adversarial, and during other activities likely to yield information
having evidentiary value. However, officers need not activate their cameras when it
would be unsafe, impossible, or impractical to do so, but such instances of not recording
when otherwise required must be documented as specified in the Use and Documentation
guidelines, part (E)(2) (above).
C.Of ficers have discretion to record or not record general citizen contacts.
D.Of ficers will wear their camera in a conspicuous manner as specified in training. Officers
have no affirmative duty to inform people that a BWC is being operated or that the
individuals are being recorded. Officers may make an announcement that BWCs are
being used.
E.Once activated, the BWC should continue recording until the conclusion of the incident
or encounter, or until it becomes apparent that additional recording is unlikely to capture
information having evidentiary value. The supervisor having charge of a scene shall
likewise direct the discontinuance of recording when further recording is unlikely to
capture additional information having evidentiary value. If the recording is discontinued
while an investigation, response, or incident is ongoing, officers shall state the reasons for
ceasing the recording on camera before deactivating their BWC. If circumstances change,
officers shall reactivate their cameras as required by this policy to capture information
having evidentiary value. Any decision to discontinue recording shall be made with
respect to the nine policy objectives.
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F.Off icers shall not intentionally block the BWC’s audio or visual recording functionality
to defeat the purposes of this policy. This does not prevent an officer from temporarily
blocking the visual recording while ensuring audio data is collected during an encounter
with persons who are nude or when sensitive human areas are exposed.
G.Notwithstanding any other provision in this policy, officers shall not use their BWCs or
any other device to record other agency personnel during non-enforcement related
activities, such as during pre- and post-shift time in locker rooms, during meal breaks, or
during other private conversations, unless recording is authorized as part of a criminal
investigation.
Special Guidelines for Recording
Officers may, in the exercise of sound discretion, determine:
A.To use their BWCs to record any police-citizen encounter if there is reason to believe the
recording would potentially yield information having evidentiary value, unless such
recording is otherwise expressly prohibited.
B.To u se th eir BWCs to take recorded statements from persons believed to be victims of
and witnesses to crimes, and persons suspected of committing crimes, considering the
needs of the investigation and the circumstances pertaining to the victim, witness, or
suspect. The preferred method of recording a formal statement from a victim, witness or
suspect is using currently approved audio recording devices/software compatible with
records management dictation software.
In addition,
C.Of ficers need not record persons being provided medical care unless there is reason to
believe the recording would document information having evidentiary value. When
responding to an apparent mental health crisis or event, BWCs shall be activated as
necessary to document any response to resistance and the basis for it, and any other
information having evidentiary value, but need not be activated when doing so would
serve only to record symptoms or behaviors believed to be attributable to the mental
health issue.
D. Officers should use their BWC and /or squad -based audio/video systems to record their
transportation and the physical transfer of persons in their custody to hospitals, detox and
mental health care facilities, juvenile detention centers, and jails, but otherwise should
not record in these facilities unless the officer anticipates witnessing a criminal event or
being involved in or witnessing an adversarial encounter or response to resistance
incident.
School Resource Officers
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The St. Louis Park Police Department recognizes that the duties and working environment for
School Resource Officers (SRO) are unique within policing. It recognizes the SROs are required
to maintain school safety while keeping the sanctity of the learning environment that the school
provides. SROs are expected to continuously build trusting relationships with students and staff.
SROs often have impromptu interventions with students to deescalate arguments and/or
conflicts. It is with this understanding that the St. Louis Park Police Department provide special
guidelines for SROs and their BWC.
The BWC should be activated in any of the following situations:
(a)When summoned by any individual to respond to an incident where it is likely that law
enforcement action will occur when you arrive.
(b)Any self -initiated activity where it is previously known that you will make a custodial
arrest.
(c)Any self -initiated activity where it is previously known that you ’re questioning /
investigation will be used later in a criminal charge.
(d)When feasible an SRO shall activate the BWC when the contact becomes adversarial or
the subject exhibits unusual behaviors.
Nothing in the policy undermines the fact that in many instances SROs are suddenly forced to
take law enforcement action and have no opportunity to activate the BWC. It is also recognized
that SROs have private (confidential) conversations with juveniles. It is not always appropriate to
record these conversations as it diminishes the trust between the individual and the SRO.
Downloading and Categorizing Data
A.Each officer using a BWC is responsible for transferring or assuring the proper transfer of
the data from their camera to the BWC server b y the end of that officer’s shift. However,
if the officer is involved in a shooting, in-custody death, or other law enforcement
activity resulting in death or great bodily harm, a supervisor or investigator shall take
custody of the officer’s BWC and consult with their supervisor.
B.Of ficers shall categorize the BWC data files of each video capture and should consult
with a supervisor if in doubt as to the appropriate category. The selected category(ies)
shall determine the retention times per the general records retention schedule established
by the Minnesota Clerks and Finance Officers Association (MCFOA).
C.In addition, officers shall categorize each file appropriately , in the manner specified in
training, with the appropriate category to indicate the information it contains. Some data
subjects may have rights under the MGDPA limiting disclosure of information about
them. These individuals include:
1.Victims and alleged victims of criminal sexual conduct and sex trafficking.
2.Victims of child abuse or neglect.
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3.Vu lnerable adults who are victims of maltreatment.
4.Undercover officers.
5. Informants.
6.When the video is clearly offensive to common sensitivities.
7.Vic tims of and witnesses to crimes, if the victim or witness has requested not to be
identified publicly.
8.Individuals who called 911, and services subscribers whose lines were used to place a
call to the 911 system.
9.Mandated reporters.
10.Ju venile witnesses, if the nature of the event or activity justifies protecting the
identity of the witness.
11.Juveniles who are or may be delinquent or engaged in criminal acts.
12.Individuals who make complaints about violations with respect to the use of real
property.
13.Of ficers and employees who are the subject of a complaint related to the events
captured on video.
14.Oth er individuals whose identities the officer believes may be legally protected from
public disclosure.
D.Category and flag designations may be corrected or amended based on additional
information.
Administering Access to BWC Data
A.Data subjects. Under Minnesota law, the following are considered data subjects for
purposes of administering access to BWC data:
1.Any person or entity whose image or voice is documented in the data.
2.The officer who collected the data.
3.Any other officer whose voice or image is documented in the data, regardless of
whether that officer is or can be identified by the recording.
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B.BWC data is presumptively private. BWC recordings are classified as private data
about the data subjects unless there is a specific law that provides differently. As a result:
1.BWC data pertaining to people is presumed private, as is BWC data pertaining to
businesses or other entities.
2.Some BWC data is classified as confidential (see C. below).
3.Some BWC data is classified as public (see D. below).
C.Co nfidential data. BWC data that is collecte d or created as part of an active criminal
investigation is confidential. This classification takes precedence over the “private”
classification listed above and the “public” classifications listed below.
D.Public data. The following BWC data is public:
1.Data documenting the discharge of a firearm by a peace officer in the course of duty,
other than for training or the killing of an animal that is sick, injured, or dangerous.
2.Data that documents the use of force by a peace officer that results in substantial
bodily harm.
3.Data that a data subject requests to be made accessible to the public, subject to
redaction. Data on any data subject (other than a peace officer) who has not consented
to the public release must be redacted [if practicable]. In addition, any data on
undercover officers must be redacted.
4.Da ta that documents the final disposition of a disciplinary action against a public
employee.
However, if another provision of the Data Practices Act classifies data as private or
otherwise not public, the data retains that other classification. For instance, data that
reveals protected identities under Minn. Stat. § 13.82, subd. 17 (e.g., certain victims,
witnesses, and others) should not be released even if it would otherwise fit into one of the
public categories listed above.
E.Access to BWC data by non-employees. Officers shall refer members of the media or
public seeking access to BWC data to the administrative lieute nant or their designee, who
shall process the request in accordance with the St. Louis Park Police Department’s
applicable processes and policies and other governing laws. In particular:
1.An individual shall be allowed to review recorded BWC data about themselves and
other data subjects in the recording, but access shall not be granted:
a.If the data was collected or created as part of an active investigation.
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b.To portions of the data that the agency would otherwise be prohibited by law
from disclosing to the person seeking access, such as portions that would
reveal identities protected by Minn. Stat. § 13.82, subd. 17.
2.Un less the data is part of an active investigation, an individual data subject shall be
provided with a copy of the recording upon request, but subject to the following
guidelines on redaction:
a.Data on other individuals in the recording who do not consent to the release
must be redacted.
b.Data that would identify undercover officers must be redacted.
c.Data on other officers who are not undercover, and who are on duty and
engaged in the performance of official duties, may not be redacted.
F.Access by peace officers and law enforcement employees. No employee may have
access to the department’s BWC data except for legitimate law enforcement or data
administration purposes:
1.Officers may access, share, and view and download stored BWC video only when
there is a business need for doing so, including the need to defend against an
allegation of misconduct or substandard performance. Officers may review video
footage of an incident in which they were involved prior to preparing a report, giving
a statement, or providing testimony about the incident. Officers shall not use the fact
that a recording was made as a reason to write a less detailed report.
2.Personal devices shall not be used to capture, record, transfer, store or view any BWC
videos, photos or other evidence.
2.3.Supervisors may view recordings at any time they are making inquiry into an alleged
complaint, performance issue, or policy violation.
3.4.Agency personnel are prohibited from accessing BWC data for non-business reasons
and from sharing the data for non-law e nforcement related purposes, including but
not limited to uploading BWC data recorded or maintained by this agency to public
and social media websites. All incidents of access to BWC data are digitally logged.
Allegations of inappropriate access to BWC data will be investigated and based on
the finding, discipline may result.
4.5.Employees seeking access to BWC data for non-business reasons may make a request
for it in the same manner as any member of the public.
G.Other authorized disclosures of data. Officers may display portions of BWC footage to
witnesses as necessary for purposes of investigation as allowed by Minn. Stat. § 13.82,
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subd. 15, as may be amended from time to time. These displays will generally be limited
in order to protect against the incidental disclosure of individuals whose identities are not
public. Any displays will take place at the St. Louis Park Police Department with the
approval of a supervisor. Protecting against incidental disclosure could involve, for
instance, showing only a portion of the video, showing only screen shots, muting the
audio, or playing the audio but not displaying video. In addition,
1.An officer may request a supervisor respond to the scene and request approval for a
display to take place outside the St. Louis Park Police Department.
2.BWC data may be shared with other law enforcement agencies only for legitimate
law enforcement purposes that are documented in writing at the time of the
disclosure.
3.BWC data shall be made available to prosecutors, courts, and other criminal justice
entities as provided by law.
Data Security Safeguards
A.Department members shall not intentionally ed it, alter, or erase any BWC recording
unless otherwise expressly authorized by the Chief of Police or the Chief’s designee.
B.As required by Minn. Stat. § 13.825, subd. 9, as may be amended from time to time, this
agency shall obtain an independent biennial audit of its BWC program.
Agency Use of Data
A.To ensure compliance with this policy and to identify any performance areas in which
additional training or guidance is required supervisors will review each officer’s BWC
recordings during each officer’s trimester evaluation or more frequently if there is
reason to do so.
B.In addition, supervisors and other assigned personnel may access BWC data for the
purposes of reviewing or investigating a specific incident that has given rise to a
complaint or concern about officer misconduct or performance.
C.When a video is accessed or reviewed via Evidence.com, a notation shall be entered
into the “Notes” section of the screen stating the reason for access.
D.No thing in this policy limits or pro hibits the use of BWC data as evidence of
misconduct or as a basis for discipline.
E.Of ficers should contact their supervisors to discuss retaining and using BWC footage
for training purposes. Officer objections to preserving or using certain footage for
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training will be considered by the c hief of Police on a case-by-case basis. Field training
officers may utilize BWC data with trainees for the purpose of providing coaching and
feedback on the trainees’ performance.
Data Retention
A.All BWC data shall be retained for a minimum period of 90 days. There are no
exceptions for erroneously recorded or non-evidentiary data.
B.Data documenting the following incidents must be maintained for a minimum period of
one year:
1.Discharge of a firearm by a peace officer in the course of duty, other than for training
or the killing of an animal that is sick, injured or dangerous.
2.The use of deadly force by a peace officer, or force of a sufficient type or degree to
require a response to resistance report or supervisory review.
3.Circumstances that have given rise to a formal complaint against an officer.
C.Other data having evidentiary value shall be retained for the period specified in the
Records Retention Schedule. When a particular recording is subject to multiple retention
periods, it shall be maintained for the longest applicable period.
D.Su bject to Part F (below), all other BWC footage that is classified as non-evidentiary,
becomes classified as non-evidentiary, or is not maintained for training shall be destroyed
after 90 days.
E.Upon written request by a BWC data subject, the agency shall retain a recording
pertaining to that subject for an additional time period requested by the subject of up to 1
year. The agency will notify the requestor at the time of the request that the data will then
be destroyed unless a new written request is received.
F.The department shall maintain an inventory of BWC recordings having evidentiary value.
G.The department will post this policy, together with a link to its Records Retention
Schedule, on its website.
H.In the event that a BWC data file is inaccurately categorized by an officer, or additional
information is gained that suggests a data file category should be changed, the officer
shall notify their immediate supervisor of the required change(s).
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Compliance
Supervisors shall monitor for compliance with this policy. Depending on the circumstances,
v iolations of the policy may result in coaching and counseling, oral reprimand, written
reprimand, suspension or termination. The unauthorized access to or disclosure of BWC data
may constitute misconduct and subject individuals to disciplinary action and criminal penalties
pursuant to Minn. Stat. § 13.09.
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City of St. Louis Park, Minnesota
In -Car Camera Policy
Purpose
The primary purpose of using body-worn -cameras (ICCs) is to:
A.Capture evidence arising from a police-citizen contact.
B.Assist with accurate report writing.
C.Allow for transparency and accountability in policing and protect the civil rights of
the community.
This policy sets forth guidelines governing the use of ICCs and administering the data that
results. Compliance with these guidelines is mandatory, but it is recognized that officers must
also attend to other primary duties and the safety of all concerned, sometimes in circumstances
that are tense, uncertain, and rapidly evolving.
Objectives
The St. Louis Park Police Department has adopted the use of portable audio/video recorders to
accomplish the following objectives:
A.To enhance officer safety.
B.To document statements and events during the course of an incident.
C.To enhance the officer’s ability to document and review statements and actions for
both internal reporting requirements and for courtroom preparation/presentation.
D.To preserve audio and visual information for use in current and future investigations.
E.To enhance the public trust by preserving factual representations of officer-citizen
interactions in the form of audio-video recording.
F.To promote the civility of police-civilian encounters
G.To provide objective evidence to help resolve civilian complaints against police
officers and the City of St. Louis Park.
H.To protect the civil rights of the community.
I.To assist with training and evaluation of officers.
Policy
It is the policy of this department to authorize and require the use of department-issued ICCs as
set forth below, and to administer ICC data as provided by law.
Scope
This policy governs the use of ICCs in the course of official duties. The Chief of Police or the
chief’s designee may supersede this policy by providing specific instructions for ICC use to
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individual officers, or providing specific instructions pertaining to particular events or classes of
events, including but not limited to political rallies and demonstrations where their use might be
perceived as a form of political or viewpoint-based sur veillance. The c hief or designee may also
provide specific instructions or standard o perating p rocedures for ICC use to officers assigned to
specialized details, such as carrying out duties in courts or guarding prisoners or patients in
hospitals and mental health facilities. In the event the chief does supersede policy by providing
specific instructions for use, a written report will be submitted to the City Manager.
Definitions
The following phrases have special meanings as used in this policy:
A.MGDPA or Data Practices Act refers to the Minnesota Government Data Practices Act,
Minn. Stat. § 13.01, et seq.
B.Re cords Retention Schedule refers to the General Records Retention Schedule for
Minnesota Cities.
C.Law enforcement-related information means information captured or available for
capture by use of an ICC that has evidentiary value because it documents events with
respect to a stop, arrest, search, citation, or charging decision.
D.Evidentiary Value means that the information may be useful as proof in a prosecution or
defense of a criminal action, related civil or administrative proceeding, further
investigation of an actual or suspected criminal act, or in considering an allegation
against a law enforcement agency or officer.
E.General Citizen Contact means an informal encounter with a citizen that is not and does
not become law enforcement-related or adversarial, and a recording of the event would
not yield information relevant to an ongoing investigation. Examples include, but are not
lim ited to, assisting a motorist with directions, summoning a tow truck , or receiving
generalized concerns from a citizen about crime trends in his or her neighborhood.
F.Adversarial means a law enforcement encounter with a person that becomes
confrontational, during which at least one person expresses anger, resentment, or hostility
toward the other, or at least one person directs toward the other verbal conduct consisting
of arguing, threatening, challenging, swearing, yelling, or shouting. Encounters in which
a citizen demands to be recorded or initiates recording on his or her own are deemed
adversarial.
G.Unintentionally recorded footage is a video recording that results from an officer’s
inadvertence or neglect in operating the officer’s ICC, provided that no portion of the
resulting recording has evidentiary value. Examples of unintentionally recorded footage
include, but are not limited to, recordings made in station house locker rooms, restrooms,
and recordings made while officers were engaged in conversations of a non-business,
personal nature with the expectation that the conversation was not being recorded.
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H.Official duties, for purposes of this policy, means that the officer is on duty and
performing authorized law enforcement services on behalf of this agency.
Training
All users of an ICC will be trained on the cameras operation and this policy prior to deploying
one.
Use and Documentation
A.Officers may use only department-issued ICCs in the performance of official duties for
this agency or when otherwise performing authorized law enforcement services as an
employee of this department.
B.All officers working uniform patrol, uniform special details, traffic duties, and uniform
school resource officer duties shall use an ICC unless permission has been granted by a
supervisor to deviate from this clause. Plain clothes investigators/officers and
administrators are allowed to use ICC when interacting with citizens, when appropriate.
C.Officers who have deployed an ICC shall operate and use them consistent with this
policy. Officers shall conduct a function test of their ICCs at the beginning of each shift
to make sure the devices are operating properly. Officers noting a malfunction during
testing or at any other time shall promptly report the malfunction to the officer’s
supervisor. As soon as is practical, the malfunctioning ICC shall be put down for service
and the officer should deploy a vehicle with a working ICC. If an ICC malfunctions while
recording or is damaged the circumstances shall be documented in a police report and a
supervisor shall be notified. Supervisors shall take prompt action to address malfunctions
and document the steps taken in writing.
D.Off icers must document ICC use and non-use as follows:
1.Whenever an officer makes a recording, the existence of the recording shall be
documented in the records management system, an incident report, or a citation if
completed.
2.Whenever an officer fails to record an activity that is required to be recorded under
this policy or captures only a part of the activity, the officer must document the
circumstances and reasons for not recording in the records management system or
inciden t report. Supervisors shall review these reports and initiate any corrective
action deemed necessary.
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General Guidelines for Recording
A.This policy is not intended to describe every possible situation in which the ICC should
be activated, although there are many situations where use of the ICC is appropriate.
Officers should activate the ICC any time the user believes it would be appropriate or
valuable to record an incident.
B.Officers shall activate their ICCs when anticipating that they will be involved in, become
involved in, or witness other officers of this agency involved in a pursuit, Terry frisks , a
traffic stop of a motorist, an investigative stop of a pedestrian, searches, seizures, arrests,
response to resistance incidents, any encounter that becomes in any way hostile,
confrontational, or adversarial , and during other activities likely to yield information
having evidentiary value. However, officers need not activate their cameras when it
would be unsafe, impossible, or impractical to do so, but such instances of not recording
when otherwise required must be documented as specified in the Use and Documentation
guidelines, part (D)(2) (above).
C.Whe n it is reasonable to expect that the citizen contact will o ccur outside the camera’s
field of view, such as in a home or building or other location distant from the patrol car,
officers need not activate their ICCs if the officer is using a BWC to document the event.
D.Of ficers have discretion to record or not record general citizen contacts.
E.Of ficers have no affirmative duty to inform people that an ICC is being operated or that
the individuals are being recorded. Officers may make an announcement that ICCs are
being used.
F.Once activated, the ICC should continue recording until the conclusion of the incident or
encounter, or until it becomes apparent that additional recording is unlikely to capture
information having evidentiary value. The supervisor having charge of a scene shall
likewise direct the discontinuance of recording when further recording is unlikely to
capture additional information having evidentiary value. If the recording is discontinued
while an investigation, response, or incident is ongoing, officers shall state the reasons for
ceasing the recording on camera before deactivating their ICC. If circumstances change,
officers shall reactivate their cameras as required by this policy to capture information
having evidentiary value. Any decision to discontinue recording shall be made with
respect to the nine policy objectives.
G.Of ficers shall not intentionally block the ICC’s visual recording functionality to defeat
the purposes of this policy. This does not prevent an officer from temporarily blocking
the visual recording during a n encounter with persons who are nude or when sensitive
human areas are exposed.
H.Notwithstanding any other provision in this policy, officers shall not use their ICCs or
any other device to record other agency personnel during non-enforcement related
activities, such as during pre- and post-shift time in locker rooms, during meal breaks, or
Page 19 Study session meeting of March 22, 2021 (Item No. 7)
Title: Body worn camera annual update
1/14/20209/15/2020
In-Car Camera Policy Page 5
during other private conversations, unless recording is authorized as part of a criminal
investigation.
Special Guidelines for Recording
Officers may, in the exercise of sound discretion, determine:
A.To u se their ICCs to record any police-citizen encounter if there is reason to believe the
recording would potentially yield information having evidentiary value, unless such
recording is otherwise expressly prohibited.
In addition,
B.Of ficers need not record persons being provided medical care unless there is reason to
believe the recording would document information having evidentiary value. When
respo nding to an apparent mental health crisis or event, ICCs shall be activated as
necessary to document any response to resistance and the basis for it, and any other
information having evidentiary value, but need not be activated when doing so would
serve only to record symptoms or behaviors believed to be attributable to the mental
health issue.
C.Officers should use their BWC and ICC to record their transportation and the physical
transfer of persons in their custody to hospitals, detox and mental health care facilities,
juvenile detention centers, and jails, but otherwise should not record in these facilities
unless the officer anticipates witnessing a criminal event or being involved in or
witnessing an adversarial encounter or response to resistance incident.
Downloading and Categorizing Data
A.Each officer using an ICC is responsible for transferring or assuring the proper transfer of
the data from their camera to the ICC server by the end of that officer’s shift. However, if
the officer is involv ed in a shooting, in-custody death, or other law enforcement activity
resulting in death or great bodily harm, a supervisor or investigator shall take custody of
the officer’s ICC system and consult with their supervisor.
B.Of ficers shall categorize the ICC data files of each video capture and should consult with
a supervisor if in doubt as to the appropriate category. The selected category(ies) shall
determine the retention times per the general records retention schedule established by
the Minnesota Clerk s and Finance Officers Association (MCFOA).
C.In addition, officers shall categorize each file appropriately , in the manner specified in
training, with the appropriate category to indicate the information it contains. Some data
Page 20 Study session meeting of March 22, 2021 (Item No. 7)
Title: Body worn camera annual update
1/14/20209/15/2020
In-Car Camera Policy Page 6
subjects may have rights under the MGDPA limiting disclosure of information about
them. These individuals include:
1.Victims and alleged victims of criminal sexual conduct and sex trafficking.
2.Victims of child abuse or neglect.
3.Vulnerable adults who are victims of maltreatment.
4.Undercover officers.
5. Informants.
6.When the video is clearly offensive to common sensitivities.
7.Victims of and witnesses to crimes, if the victim or witness has requested not to be
identified publicly.
8.Individuals who called 911, and services subscribers whose lines were used to place a
call to the 911 system.
9.Mandated reporters.
10.Ju venile witnesses, if the nature of the event or activity justifies protecting the
identity of the witness.
11.Juveniles who are or may be delinquent or engaged in criminal acts.
12.Individuals who make complaints about violations with respect to the use of real
property.
13.Of ficers and employees who are the subject of a complaint related to the events
captured on video.
14.Other individuals whose identities the officer believes may be legally protected from
public disclosure.
D.Category and flag designations may be corrected or amended based on additional
information.
Administering Access to ICC Data
A.Data subjects. Under Minnesota law, the following are considered data subjects for
purposes of administering access to ICC data:
Page 21 Study session meeting of March 22, 2021 (Item No. 7)
Title: Body worn camera annual update
1/14/20209/15/2020
In-Car Camera Policy Page 7
1.Any person or entity whose image or voice is documented in the data.
2.The officer who collected the data.
3.Any other officer whose voice or image is documented in the data, regardless of
whether that officer is or can be identified by the recording.
B.ICC data is presumptively private. ICC recordings are classified as private data about
the data subjects unless there is a specific law that provides differently. As a result:
1.ICC data pertaining to people is presumed private, as is ICC data pertaining to
businesses or other entities.
2.Som e ICC data is classified as confidential (see C. below).
3.Som e ICC data is classified as public (see D. below).
C.Co nfidential data. ICC data that is collected or created as part of an active criminal
investigation is confidential. This classification takes precedence over the “private”
classification listed above and the “public” classifications listed below.
D.Public data. The following ICC data is public:
1.Data documenting the discharge of a firearm by a peace officer in the course of duty,
other than for training or the killing of an animal that is sick, injured, or dangerous.
2.Data that documents the use of force by a peace officer that results in substantial
bodily harm.
3.Data that a data subject requests to be made accessible to the public, subject to
redaction. Data on any data subject (other than a peace officer) who has not consented
to the public release must be redacted [if practicable]. In addition, any data on
undercover officers must be redacted.
4.Da ta that documents the final disposition of a disciplinary action against a public
employee.
However, if another provision of the Data Practices Act classifies data as private or
otherwise not public, the data retains that other classification. For instance, data that
reveals protected identities under Minn. Stat. § 13.82, subd. 17 (e.g., certain victims,
witnesses, and others) should not be released even if it would otherwise fit into one of the
public categories listed above.
E.Access to ICC data by non-employees. Officers shall refer members of the media or
public seeking access to ICC data to the administrative lieutenant or their designee, who
Page 22 Study session meeting of March 22, 2021 (Item No. 7)
Title: Body worn camera annual update
1/14/20209/15/2020
In-Car Camera Policy Page 8
shall process the request in accordance with the St. Louis Park Police Department’s
applicable processes and policies and other governing laws. In particular:
1.An individual shall be allowed to review recorded ICC data about themse lves and
other data subjects in the recording, but access shall not be granted:
a.If the data was collected or created as part of an active investigation.
b.To portions of the data that the agency would otherwise be prohibited by law
from disclosing to the person seeking access, such as portions that would
reveal identities protected by Minn. Stat. § 13.82, subd. 17.
2.Unless the data is part of an active investigation, an individual data subject shall be
provided with a copy of the recording upon request, but subject to the following
guidelines on redaction:
a.Data on other individuals in the recording who do not consent to the release
must be redacted.
b.Data that would identify undercover officers must be redacted.
c.Data on other officers who are not undercover, and who are on duty and
engaged in the performance of official duties, may not be redacted.
F.Access by peace officers and law enforcement employees. No employee may have
access to the department’s ICC data except for legitimate law enforcement or data
administration purposes:
1.Officers may access, share, and view and download stored ICC video only when
there is a business need for doing so, including the need to defend against an
allegation of misconduct or substandard performance. Officers may review video
footage of an incident in which they were involved prior to preparing a report, giving
a statement, or providing testimony about the incident. Officers shall not use the fact
that a recording was made as a reason to write a less detailed report.
2.Personal devices shall not be used to capture, record, transfer, store or view any
ICCBWC videos, photos or other evidence.
2.3.Supervisors may view recordings at any time they are making inquiry into an alleged
complaint, performance issue, or policy violation.
3.4.Agency personnel are prohibited from accessing ICC data for non-business reasons
and from sharing the data for non-law enforcement related purposes, including but
not limited to uploading ICC data recorded or maintained by this agency to public and
social media websites. All incidents of access to ICC data are digitally logged.
Page 23 Study session meeting of March 22, 2021 (Item No. 7)
Title: Body worn camera annual update
1/14/20209/15/2020
In-Car Camera Policy Page 9
Allegations of inappropriate access to ICC data will be investigated and based on the
finding, discipline may result.
4.5.Employees seeking access to ICC data for non-business reasons may make a request
for it in the same manner as any member of the public.
G.Other authorized disclosures of data. Officers may display portions of ICC footage to
witnesses as necessary for purposes of investigation as allowed by Minn. Stat. § 13.82,
subd. 15, as may be amended from time to time. These displays will generally be limited
in order to protect against the incidental disclosure of individuals whose identities are not
public. Any displays will take place at the St. Louis Park Police Department with the
approval of a supervisor. Protecting against incidental disclosure could involve, for
instance, showing only a portion of the video, showing only screen shots, muting the
audio, or playing the audio but not displaying video. In addition,
1.An officer may request a supervisor respond to the scene and request approval for a
display to take place outside the St. Louis Park Police Department.
2.ICC data may be shared with other law enforcement agencies only for legitimate law
enforcement purposes that are documented in writing at the time of the disclosure.
3.ICC data shall be made available to prosecutors, courts, and other criminal justice
entities as provided by law.
Data Security Safeguards
A.Department members shall not intentionally edit, alter, or erase any BWC recording
unless otherwise expressly authorized by the Chief of Police or the Chief’s designee.
B.As required by Minn. Stat. § 13.825, subd. 9, as may be amended from time to time, this
agency shall obtain an independent biennial audit of its ICC program.
Agency Use of Data
A.To ensure compliance with this policy and to identify any performance areas in which
additional training or guidance is required supervisors will review each officer’s ICC
recordings during each officer’s trimester evaluation or more frequently if there is
reason to do so.
B.In addition, supervisors and other assigned personnel may access ICC data for the
purposes of reviewing or investigating a specific incident that has given rise to a
complaint or concern about officer misconduct or performance.
Page 24 Study session meeting of March 22, 2021 (Item No. 7)
Title: Body worn camera annual update
1/14/20209/15/2020
In-Car Camera Policy Page 10
C.When a video is accessed or reviewed via Evidence.com, a notation shall be entered
into the “Notes” section of the screen stating the reason for access.
D.Nothing in this policy limits or prohibits the use of ICC data as evidence of misconduct
or as a basis for discipline.
E.Of ficers should contact their supervisors to discuss retaining and using ICC footage f or
training purposes. Officer objections to preserving or using certain footage for training
will be considered by the chief of Police on a case-by -case basis. Field training officers
may utilize ICC data with trainees for the purpose of providing coaching and feedback
on the trainees’ performance.
Data Retention
A.All ICC data shall be retained for a minimum period of 90 days. There are no exceptions
for erroneously recorded or non-evidentiary data.
B.Data documenting the following incidents must be maintained for a minimum period of
one year:
1.Discharge of a firearm by a peace officer in the course of duty, other than for training
or the killing of an animal that is sick, injured or dangerous.
2.The use of deadly force by a peace officer, or force of a sufficient type or degree to
require a response to resistance report or supervisory review.
3.Circumstances that have given rise to a formal complaint against an officer.
C.Other data having evidentiary value shall be retained for the period specified in the
Records Retention Schedule. When a particular recording is subject to multiple retention
periods, it shall be maintained for the longest applicable period.
D.Su bject to Part F (below), all other ICC footage that is classified as non -evidentiary,
becomes classified as non-evidentiary, or is not maintained for training shall be destroyed
after 90 days.
E.Upon written request by a ICC data subject, the agency shall retain a recording pertaining
to that subject for an additional time period requested by the subject of up to 1 year. The
agency will notify the requestor at the time of the request that the data will then be
destroyed unless a new written request is received.
F.Th e department shall maintain an inventory of ICC recordings having evidentiary value.
Page 25 Study session meeting of March 22, 2021 (Item No. 7)
Title: Body worn camera annual update
1/14/20209/15/2020
In-Car Camera Policy Page 11
G.In the event that a ICC data file is inaccurately categorized by an officer, or additional
information is gained that suggests a data file category should be changed, the officer
shall notify their immediate supervisor of the required change(s).
Compliance
Supervisors shall monitor for compliance with this policy. Depending on the circumstances,
v iolations of the policy may result in coaching and counseling, oral reprimand, written
reprimand, suspension or termination. The unauthorized access to or disclosure of ICC data may
constitute misconduct and subject individuals to disciplinary action and criminal penalties
pursuant to Minn. Stat. § 13.09.
Page 26 Study session meeting of March 22, 2021 (Item No. 7)
Title: Body worn camera annual update
Meeting: Study session
Meeting date: March 22, 2021
Written report: 8
Executive summary
Title: Rise on 7 affordable housing redevelopment
Recommended action: Please provide staff with any feedback on the proposed redevelopment.
Policy consideration: Does the proposed redevelopment meet the city’s affordable housing and
neighborhood development goals?
Summary: CommonBond has purchased the former Prince of Peace church site at 8115 MN
Highway 7. They would like to redevelop the site and build a four-story, mixed-use building.
The proposed building would include 120 apartments that would all be affordable, with income
restrictions ranging between 30%-80% area median income (AMI). The unit-mix, as currently
outlined, includes 57 one-bedroom units, 39 two-bedroom units and 24 three-bedroom units.
The site would have a combination of surface parking in a lot and a parking garage under the
building that are accessed from the Highway 7 frontage road north of the site.
CommonBond has a letter of intent signed with Westwood Lutheran Church, an early childcare
provider, to co-locate on the site and operate a new early childhood center (to be known as
Rise Early Learning). Westwood is looking to expand its current childcare services at a second
location with an affordable model that would allow those at lower incomes to access their
services. Discussions around the financial model for this amenity are on-going. Rise Early
Learning intends to reserve approximately 60 spots for families living at the Rise on 7.
The developer has completed both a phase one and a phase two environmental review and has
started working with city staff to determine the zoning applications needed. The development
will require a comprehensive plan amendment from civic to high-density residential
development on the site. The lot will also need to be platted and variance(s) may be needed, as
well. CommonBond is preparing its plans and intends to submit applications in the second
quarter of 2021.
Financial or budget considerations: As a part of the development process, CommonBond will
request financial assistance from the City of St. Louis Park. The request may include tax
increment financing and potentially city affordable housing trust fund assistance. The
development has already received a $1.43 million grant award from the Met Council Livable
Communities Demonstration Account (LCDA), and is waiting on the determination of a potential
award from Hennepin County Affordable Housing Incentive Fund (AHIF).
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Site information; Development plans
Prepared by: Jacquelyn Kramer, associate planner
Reviewed by: Sean Walther, planning and zoning supervisor
Karen Barton, community development director
Approved by: Tom Harmening, city manager
Study session meeting of March 22, 2021 (Item No. 8) Page 2
Title: Prince of Peace affordable housing redevelopment
Site information
Site location: The proposed redevelopment site is located south of Highway 7 and west of
Texas Avenue, just north of the city limits boundary with Hopkins.
Current uses: religious institution
2040 land use: CIV - Civic
Current zoning: RC High Density Residential
Proposed use: multi-family residential, group daycare
Proposed 2040 land use: RH – High Density Residential
Site aerial:
City of Hopkins Texas Avenue Division Street
Project site
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Study session meeting of March 22, 2021 (Item No. 8)
Title: Rise on 7 affordable housing redevelopment Page 94
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Study session meeting of March 22, 2021 (Item No. 8)
Title: Rise on 7 affordable housing redevelopment Page 95
Meeting: Study session
Meeting date: March 22, 2021
Written report: 9
Executive summary
Title: Best Cleaners conditional use permit and variance extension
Recommended action: No action at this time. Staff will bring Best Cleaner’s formal request for
an additional year to act on their approved conditional use permit and variance to council on
April 5, 2021.
Policy consideration: Does the council wish to allow Best Cleaners an additional year to act on
their conditional use permit and variance , and in doing so, allow them to build as previously
approved even though the addition would not comply with two new zoning regulations?
Summary: City council approved a conditional use permit (CUP) and variance for 8105
Minnetonka Boulevard on April 15, 2019 (Resolution 19-050). The CUP and variance allow for a
building expansion and site improvements to Best Cleaners, which is the existing business on
site. The CUP allows in -vehicle service for customers to drop off and pick up laundry from a
drive -up window. The variance reduced the west building setback of the addition from 15 feet
to five feet, which matches the setback of the existing building. Council also approved a one-
year extension to the deadline to act on the CUP and variance last year on April 20, 2020. The
applicant indicates the current health pandemic has continued to delay undertaking the
construction at 8105 Minnetonka Boulevard and requests an extension for another year.
Since the plans were approved in 2019, there have been changes in circumstances to the
property. These changes include: the site was rezoned; the city adopted window transparency
requirements for ground floor commercial; and the city completed the Texa-Tonka small area
plan. Some elements of the approved plans do not comply with the new zoning regulations and
plan .
The city attorney and staff find that council may extend the time if they so choose ; however,
the council cannot amend the previous approvals as a condition of that extension. If council
does not approve the requested extension, the applicant has until April 15, 2021 to submit
building permits. After that, staff would not accept or approve building permits for the work,
and staff would schedule a hearing to revoke the CUP and variance granted in 2019.
Council will be asked to formally consider the request for an extension on the April 5, 2021.
Financial or budget considerations: Not applicable.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion; Site plan; Rendering; Texa-Tonka small area plan exhibits
Prepared by: Jacquelyn Kramer, associate planner
Reviewed by: Sean Walther, planning and zoning supervisor
Karen Barton, community development director
Approved by: Tom Harmening, city manager
Study session meeting of March 22, 2021 (Item No. 9) Page 2
Title: Best Cleaners conditional use permit and variance extension
Discussion
Background: City council approved a conditional use permit (CUP) and variance for 8105
Minnetonka Boulevard on April 15, 2019 (Resolution 19-050). The CUP and variance allow for a
building expansion and site improvements to Best Cleaners, which is the existing business on
site. The CUP allows in -vehicle service for customers to drop off and pick up laundry from a
drive -up window. The variance reduced the west building setback of the addition from 15 feet
to five feet, which matches the setback of the existing building. Council also approved a one-
year extension to the deadline to act on the CUP and variance last year on April 20, 2020. The
applicant indicates the current health pandemic has continued to delay undertaking the
construction at 8105 Minnetonka Boulevard and requests an extension for another year.
City code requires that CUP and variance applications be acted upon within a certain time, or
the CUP and variance are cancelled. The city attorney and staff find the ordinance allows
council to extend the time, but code does not allow the council to amend the previous
approvals as a condition of that extension. If city council does not approve the requested
extension, staff would schedule a hearing to revoke the CUP and variance granted in 2019. The
owner of the subject property could reapply and address the discrepancies between their plans
and the current codes either before, during or after the city’s revocation process.
Current considerations: There have been changes in circumstances to the property since the
application was approved in 2019. Some elements of the approved plans do not comply with
the new zoning regulations and plan.
The zoning of the property changed from C-2 general commercial to C-1 neighborhood
commercial.
•The dry -cleaning/laundry service use is still allowed in the C -1 zoning district. However,
the size of such uses is limited to 7,500 square feet. The proposed building with the
addition would be 7,589 square feet. This is 89 square feet more than allowed.
Th e architectural standards were amended to require a certain amount of ground floor
transparency on street-facing building facades.
•The glass doors proposed on the east building elevation facing Utah Avenue South
provide less than three percent transparency. The city’s architectural design guidelines
have been amended and the code now requires at least 20% transparency on the
ground floor along the secondary street. There is a shortfall of 17%. The uses behind
these walls are primarily p rocessing and equipment space according to the approved
floor plans .
The city completed the Texa-Tonka small area plan, and the subject property is included in
the scope of that study.
•The small area plan recommended that the two access points on Utah Avenue South be
shifted farther south away from Minnetonka Blvd.
These code and plan changes do not prevent the city council from approving another extension
to the CUP and variance that was approved. The approved plans in many respects would
improve the appearance of the property, add to the property value, and increase the jobs at
Study session meeting of March 22, 2021 (Item No. 9) Page 3
Title: Best Cleaners conditional use permit and variance extension
this location. Except for the three items noted above, the approved plan appears to otherwise
be consistent with the current rules and guidelines. However, if built as approved in 2019, the
new building addition would be nonconforming in those respects from day one.
The council is not obligated to grant the extension.
Next steps:
•If the extension is granted, the applicant will have until April 15, 2022, to build the
addition.
•If the extension is denied:
o The owner can submit building permits to proceed with the approved work up until
April 15, 2021. The owner would have to diligently work to make progress on
construction under the permits issued and complete the work in a timely manner.
o After April 15, 2021, the city would not accept or approve permits for the work. The
property owner could reapply for the CUP and variance and amend their plans to
meet the current requirements at any time .
o Absent pending new zoning applications, the city would initiate a process to
affirmatively revoke the CUP and variance that were granted in 2019. That process
would include a public hearing at planning commission and city council action.
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Study session meeting of March 22, 2021 (Item No. 9)
Title: Best Cleaners conditional use permit and variance extension Page 4
Existing Conditions
Rendering of Proposed Building Addition
Page 5 Study session meeting of March 22, 2021 (Item No. 9)
Title: Best Cleaners conditional use permit and variance extension
Exhibits from Texa-Tonka small area plan
1.Vision statement and key recommendations
2.Guiding principles of small area plan
Page 6 Study session meeting of March 22, 2021 (Item No. 9)
Title: Best Cleaners conditional use permit and variance extension
3.Movement and circulation recommendations
8115 Minnetonka Blvd.
Page 7 Study session meeting of March 22, 2021 (Item No. 9)
Title: Best Cleaners conditional use permit and variance extension
4.Built form recommendations for 8115 Minnetonka Boulevard (Parcel 15)
Page 8 Study session meeting of March 22, 2021 (Item No. 9)
Title: Best Cleaners conditional use permit and variance extension
Meeting: Study session
Meeting date: March 22, 2021
Written report: 10
Executive summary
Title: Proposed Comcast franchise agreement
Re commended action: The report is presented in preparation for the council to act on the
proposed franchise agreement at its April 5, 2021, regular council meeting.
Policy consideration: The city’s cable franchise attorney, city staff and Comcast representatives
have reached agreement on a new 10-year cable television franchise , pending council approval.
Summary: The city’s current franchise agreement with Comcast expired in January 2021; under
the terms of the franchise and applicable law Comcast has continuing authority to provide cable
service in the city until a new franchise agreement is approved. Upon receipt of Comcast’s
request to renew its cable franchise in the city, the city notified Comcast of its intent to conduct
informal renewal negotiations in accordance with the federal Cable Act. Following an
assessment of Comcast’s past performance and an assessment by the city of future cable-
related needs and interests, the city began negotiations with Comcast on a new franchise and
has reached agreement, pending council approval.
Financial or budget considerations: The final franchise agreement determines the franchise fee
based on a percentage of gross revenues from cable service, and also includes capital funding
for public-educational-government (PEG) channels, to be received by the city over the new 10-
year franchise term.
Strategic priority consideration: St. Louis Park is committed to creating opportunities to build
social capital through community engagement.
Supporting documents:
•Discussion
•Proposed Comcast cable franchise agreement
•September 14, 2020, council study session report
•October 28, 2019, council study session report
Prepared by: Jacque Smith, communications and marketing manager
Reviewed by: Clint Pires, chief information officer
Brian Grogan, attorney at law, Moss & Barnett
Approve d by: Tom Harmening, city manage r
Study session meeting of March 22, 2021 (Item No. 10 ) Page 2
Title: Proposed Comcast franchise agreement
Discussion
Background: The city’s current franchise agreement with Comcast expired in January 2021. The
terms of the current franchise continue to apply under state and federal law until a new
franchise agreement is approved. Following an assessment of Comcast’s past performance and
a city needs assessment, the city and Comcast began negotiation of a new franchise and have
reached agreement, pending council approval.
Present considerations: Below are the highlights of the proposed 10-year franchise agreement:
•Franchise fee (Sec. 16.1): The city will continue to receive quarterly payments of 5% of
grantee’s quarterly gross revenues from the provision of cable services in the city .
•PEG fee (Sec. 7.12): The city will receive quarterly PEG (public-education-government)
fees of 2% of the grantee’s quarterly gross revenues, to be used by the city to fund PEG
expenses. This differs from the current franchise, which provided defined payments to
the city at three intervals throughout the franchise.
•Free cable service to buildings (Sec. 6.5): Basic cable service is provided free of charge
for schools and city buildings shown in Exhibit A. If laws change to allow the grantee to
charge the city for complimentary services , written notice by the grantee is required and
the city can suspend certain services before invoicing starts . (See FCC 621 Order update)
•HD PEG channels (Sec. 7.2): The proposed franchise allows for the addition of two HD
(high definition) PEG channels in exchange for giving up two SD (standard definition)
PEG channels.
•Customer service (Sec. 14): The proposed franchise includes extensive customer service
policies and requirements.
FCC 621 Order update
In 2019, the Federal Communications Commission (FCC) issued an Order known as the “621
Order” which took effect with the potential to significantly reduce franchise fee and public,
educational and government (PEG) fee revenue received by cities from cable operators. To date
the city’s franchise payments have not been affected by the 621 Order, nor has the city been
contacted by the current grantee regarding any expected changes.
Later in 2019, a petition for review was filed in federal court (Sixth Circuit Court of Appeals)
seeking review of the 621 Order on the grounds that it is arbitrary and capricious, violates
federal law and is otherwise contrary to the law. Oral arguments were scheduled for April 2021.
In early March 2021, the FCC requested that the Court postpone oral arguments and place the
case on hold (in abeyance) for 120 days from the date of the scheduled argument. In its
argument, the FCC said, “In the time since the briefs were filed, the composition and leadership
of the Commission have changed…There is accordingly no longer a majority of the members of
the Commission who voted in favor of the Order.” Brian Grogan, attorney at law, Moss &
Barnett, will continue to keep city staff updated on this matter.
Ne xt steps: The franchise ordinance is scheduled for a first reading before the city council April
5, 2021.
6323831v7
CITY OF ST. LOUIS PARK, MINNESOTA
ORDINANCE GRANTING A CABLE TELEVISION FRANCHISE
TO
COMCAST OF MINNESOTA, LLC
March 12, 2021
Study session meeting of March 22, 2021 (Item No. 10)
Title: Proposed Comcast franchise agreement Page 3
TABLE OF CONTENTS
PAGE
i
SECTION 1 DEFINITIONS .........................................................................................................1
SECTION 2 FRANCHISE ............................................................................................................6
SECTION 3 OPERATION IN STREETS AND RIGHTS-OF-WAY .......................................9
SECTION 4 REMOVAL OR ABANDONMENT OF SYSTEM ............................................13
SECTION 5 SYSTEM DESIGN AND CAPACITY .................................................................14
SECTION 6 PROGRAMMING AND SERVICES ..................................................................16
SECTION 7 LOCAL PEG PROGRAMMING .........................................................................18
SECTION 8 REGULATORY PROVISIONS ...........................................................................24
SECTION 9 BOND ......................................................................................................................25
SECTION 10 LETTER OF CREDIT ........................................................................................26
SECTION 11 DEFAULT ............................................................................................................28
SECTION 12 FORECLOSURE AND RECEIVERSHIP ........................................................30
SECTION 13 REPORTING REQUIREMENTS .....................................................................30
SECTION 14 CUSTOMER SERVICE POLICIES..................................................................31
SECTION 15 SUBSCRIBER PRACTICES ..............................................................................37
SECTION 16 COMPENSATION AND FINANCIAL PROVISIONS ...................................38
SECTION 17 MISCELLANEOUS PROVISIONS ..................................................................41
EXHIBIT A FREE SERVICE TO PUBLIC BUILDINGS ................................................. A-1
EXHIBIT B PEG TRANSPORT ............................................................................................B-1
EXHIBIT C FRANCHISE FEE PAYMENT WORKSHEET ........................................... C-1
EXHIBIT D SUMMARY OF ORDINANCE FOR PUBLICATION ................................ D-1
Study session meeting of March 22, 2021 (Item No. 10)
Title: Proposed Comcast franchise agreement Page 4
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ORDINANCE NO.
AN ORDINANCE RENEWING THE GRANT OF A FRANCHISE TO COMCAST OF
MINNESOTA, LLC TO OPERATE AND MAINTAIN A CABLE SYSTEM IN THE CITY OF
ST. LOUIS PARK, MINNESOTA; SETTING FORTH CONDITIONS ACCOMPANYING THE
GRANT OF A FRANCHISE; PROVIDING FOR CITY REGULATION AND
ADMINISTRATION OF THE CABLE SYSTEM; TERMINATING THE PRIOR FRANCHISE
FINDINGS
1. The City of St. Louis Park, Minnesota (“City”), pursuant to applicable federal and state
law, is authorized to grant one (1) or more nonexclusive cable television franchises to
construct, operate, maintain and reconstruct cable television systems within the City limits.
2. Comcast of Minnesota, LLC (“Grantee”) has operated a Cable System in the City, under a
cable television franchise granted pursuant to a Cable Television Franchise Ordinance
approved on or about February 3, 2006.
3. Negotiations between Grantee and the City have been completed and the franchise renewal
process followed in accordance with Minnesota Statutes Chapter 238 and the Cable Act
(47 U.S.C. §546).
4. The City has determined that it is in the best interest of the City and its residents to renew
the cable television franchise with Grantee.
5. The Franchise granted to Grantee by the City is nonexclusive and complies with existing
applicable Minnesota Statutes, federal laws and regulations.
NOW, THEREFORE, THE CITY OF ST. LOUIS PARK DOES ORDAIN that a franchise is
hereby granted to Comcast of Minnesota, LLC to operate and maintain a Cable System in the City
upon the following terms and conditions:
SECTION 1 DEFINITIONS
For the purpose of this Franchise, the following, terms, phrases, words, derivations and their
derivations shall have the meanings given herein. When not inconsistent with the context, words
used in the present tense include the future tense, words in the plural number include the singular
number and words in the singular number include the plural number. The word “shall” is always
mandatory and not merely directory. The word “may” is directory and discretionary and not
mandatory.
1.1 “Affiliate” means any Person controlling, controlled by or under common control of
Grantee.
1.2 “Applicable Law(s)” means any law, statute, charter, ordinance, rule, regulation, code,
license, certificate, franchise, permit, writ, ruling, award, executive order, directive, requirement,
Study session meeting of March 22, 2021 (Item No. 10)
Title: Proposed Comcast franchise agreement Page 5
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injunction (whether temporary, preliminary or permanent), judgment, decree or other order issued,
executed, entered or deemed applicable by any governmental authority of competent jurisdiction.
1.3 “Basic Cable Service” means any service tier which includes the lawful retransmission of
local television broadcast, as set forth in Applicable Law, currently 47 U.S.C. § 522(3).
1.4 “Cable Act” means the Cable Communications Policy Act of 1984, 47 U.S.C. §§ 521 et
seq., as amended by the Cable Television Consumer Protection and Competition Act of 1992, as
further amended by the Telecommunications Act of 1996, as further amended from time to time.
1.5 “Cable Service” means (a) the one-way transmission to Subscribers of (i) Video
Programming or (ii) other programming service, and b) Subscriber interaction, if any, which is
required for the selection or use of such Video Programming or other programming service, as set
forth in Applicable Law, currently 47 U.S.C. § 522(6). For the purposes of this definition, “other
programming service” means information that a cable operator makes available to all Subscribers
generally.
1.6 “Cable System” or “System” means a facility, consisting of a set of closed transmission
paths and associated signal generation, reception, and control equipment that is designed to provide
Cable Service which includes Video Programming and which is provided to multiple Subscribers
within a community, but such term does not include:
(a) a facility that serves only to retransmit the television signals of one (1) or more
television broadcast stations;
(b) a facility that serves Subscribers without using any Right-of-Ways;
(c) a facility of a common carrier which is subject, in whole or in part, to the provisions
of 47 U.S.C. § 201 et seq., except that such facility shall be considered a Cable System
(other than for purposes of 47 U.S.C. § 541(c)) to the extent such facility is used in the
transmission of Video Programming directly to Subscribers, unless the extent of such use
is solely to provide interactive on-demand services;
(d) an open video system that complies with 47 U.S.C. § 573; or
(e) any facilities of any electric utility used solely for operating its electric utility
system.
Unless otherwise specified, it shall in this document refer to the Cable System constructed and
operated in the City under this Franchise.
1.7 “Channel” means a portion of the electromagnetic frequency spectrum which is used in a
Cable System and which is capable of delivering a television channel as defined by the FCC by
regulation, as set forth in Applicable Law, currently 47 U.S.C. § 522(4).
1.8 “City” means the City of St. Louis Park, a municipal corporation in the State of Minnesota,
acting by and through its City Council, or its lawfully appointed designee.
Study session meeting of March 22, 2021 (Item No. 10)
Title: Proposed Comcast franchise agreement Page 6
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1.9 “City Code” means the Municipal Code of the City of St. Louis Park, Minnesota, as may
be amended from time to time.
1.10 “Converter” means an electronic device, including Digital Transport Adapters, which
converts signals to a frequency not susceptible to interference within the television receiver of a
Subscriber, and by an appropriate Channel selector also permits a Subscriber to view all Cable
Service signals.
1.11 “City Council” means the governing body of the City of St. Louis Park, Minnesota.
1.12 “Day” means a calendar day, unless otherwise specified.
1.13 “Drop” means the cable that connects the Subscriber terminal to the nearest feeder cable
of the cable.
1.14 “Effective Date” means May 14, 2021.
1.15 “FCC” means the Federal Communications Commission and any legally appointed,
designated or elected agent or successor.
1.16 “Franchise” means the right granted by this Franchise Ordinance and the regulatory and
contractual relationship established hereby.
1.17 “Franchise Area” means the entire geographic area within the City as it is now constituted
or may in the future be constituted.
1.18 “Franchise Fee” means the fee assessed by the City to Grantee, in consideration of
Grantee’s right to operate the Cable System within the City’s Right-of-Ways, determined in
amount as a percentage of Grantee’s Gross Revenues and limited to the maximum percentage
allowed for such assessment by federal law. The term Franchise Fee does not include the
exceptions noted in 47 U.S.C. §542(g)(2)(A-E).
1.19 “GAAP” means generally accepted accounting principles as promulgated and defined by
the Financial Accounting Standards Board (“FASB”), Emerging Issues Task Force (“EITF”)
and/or the U.S. Securities and Exchange Commission (“SEC”).
1.20 “Gross Revenues” means and shall be construed broadly to include all revenues derived
directly or indirectly by Grantee and/or an Affiliated entity that is the cable operator of the Cable
System, from the operation of Grantee’s Cable System to provide Cable Services within the City.
Gross Revenues include, by way of illustration and not limitation:
(a) monthly fees for Cable Services, regardless of whether such Cable Services are
provided to residential or commercial customers, including revenues derived from the
provision of all Cable Services (including but not limited to pay or premium Cable
Services, pay-per-view, pay-per-event, and video-on-demand Cable Services);
(b) fees paid to Grantee for Channels designated for commercial/leased access use and
shall be allocated on a pro rata basis using total Cable Service Subscribers within the City;
Study session meeting of March 22, 2021 (Item No. 10)
Title: Proposed Comcast franchise agreement Page 7
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6323831v7
(c) Converter, digital video recorder, remote control, and other Cable Service
equipment rentals, leases, or sales;
(d) installation, disconnection, reconnection, change-in service, “snow-bird” fees;
(e) Advertising Revenues as defined herein;
(f) late fees, convenience fees, and administrative fees;
(g) other service fees such as HD fees, convenience fees, broadcast fees, regional
sports fees, home tech support fees, bill payment fees for in-person or phone payments,
additional outlet fees, and related charges relating to the provisions of Cable Service;
(h) revenues from program guides and electronic guides;
(i) Franchise Fees;
(j) FCC regulatory fees;
(k) except as provided in subsection (ii) below, any fee, tax or other charge assessed
against Grantee by municipality, which Grantee chooses to pass through and collect from
its Subscribers; and
(l) commissions from home shopping channels and other Cable Service revenue
sharing arrangements, which shall be allocated on a pro rata basis using total Cable Service
Subscribers within the City.
(i) “Advertising Revenues” shall mean revenues derived from sales of
advertising that are made available to Grantee’s Cable System Subscribers within
the City and shall be allocated on a pro rata basis using total Cable Service
Subscribers reached by the advertising. Additionally, Grantee agrees that Gross
Revenues subject to Franchise Fees shall include all commissions, representative
fees, Affiliated entity fees, or rebates paid to National Cable Communications and
Comcast Spotlight or their successors associated with sales of advertising on the
Cable System within the City allocated according to this paragraph using total
Cable Service Subscribers reached by the advertising.
(ii) “Gross Revenues” shall not include:
1. actual bad debt write-offs, except any portion which is subsequently
collected, which shall be allocated on a pro rata basis using Cable Services
revenue as a percentage of total Subscriber revenues within the City;
2. Public, Education and Government (PEG) Fees; and
3. unaffiliated third-party advertising sales agency fees which are
reflected as a deduction from revenues.
Study session meeting of March 22, 2021 (Item No. 10)
Title: Proposed Comcast franchise agreement Page 8
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Grantee shall allocate fees and revenues generated from bundled packages and services to
cable revenues pro rata based on current published rate card for the packaged services
delivered on a stand-alone basis as follows:
(i) To the extent revenues are received by Grantee for the provision of a
discounted bundle of services which includes Cable Services and non-Cable
Services, Grantee shall calculate revenues to be included in Gross Revenues using
a GAAP methodology that allocates revenue, on a pro rata basis when comparing
the bundled service price and its components to the sum of the published rate card,
except as required by specific federal, state or local law (for example, it is expressly
understood that equipment may be subject to inclusion in the bundled price at full
rate card value). The City reserves its right to review and to challenge Grantee ’s
calculations.
(ii) Grantee reserves the right to change the allocation methodologies set forth
in this section in order to meet the standards required by governing accounting
principles as promulgated and defined by the Financial Accounting Standards
Board (“FASB”), Emerging Issues Task Force (“EITF”) and/or the U.S. Securities
and Exchange Commission (“SEC”). Grantee will explain and document the
required changes to the City upon request or as part of any audit or review of
Franchise Fee payments, and any such changes shall be subject to the next
subsection below.
(iii) Resolution of any disputes over the classification of revenue should first be
attempted by agreement of the parties, but should no resolution be reached, the
parties agree that reference shall be made to GAAP as promulgated and defined by
the Financial Accounting Standards Board (“FASB”), Emerging Issues Task Force
(“EITF”) and/or the U.S. Securities and Exchange Commission (“SEC”).
Notwithstanding the foregoing, the City reserves its right to challenge Grantee’s
calculation of Gross Revenues, including the interpretation of GAAP as
promulgated and defined by the FASB, EITF and/or the SEC.
1.21 “Normal Business Hours” means those hours during which most similar businesses in the
City are open to serve customers. In all cases, “Normal Business Hours” must include some
evening hours, at least one (1) night per week and/or some weekend hours.
1.22 “Normal Operating Conditions” means those Service conditions which are within the
control of Grantee. Those conditions which are not within the control of Grantee include, but are
not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and
severe or unusual weather conditions. Those conditions which are ordinarily within the control of
Grantee include, but are not limited to, special promotions, pay-per-view events, rate increases,
regular peak or seasonal demand periods, and maintenance or upgrade of the Cable System.
1.23 “PEG” means public, education and government.
Study session meeting of March 22, 2021 (Item No. 10)
Title: Proposed Comcast franchise agreement Page 9
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1.24 “Person” means any natural person and all domestic and foreign corporations, closely-held
corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs,
businesses, common law trusts, societies and/or any other legal entity.
1.25 “Public Right-of-Way or Right-of-Way” means the area on, below, or above a public
roadway, alleyway, highway, street, cartway, bicycle lane or public sidewalk in which the City has
an interest, including other dedicated rights-of-way for travel purposes and utility easements of the
City. A Right-of-Way does not include the airwaves above a Right-of-Way with regard to cellular
or other nonwire telecommunications or broadcast service.
1.26 “Subscriber” means a Person who lawfully receives Cable Service.
1.27 “Video Programming” means programming provided by, or generally considered
comparable to programming provided by, a television broadcast station.
1.28 “Wireline MVPD” means any entity, including the City, that utilizes the Right-of-Ways to
install cable or fiber and is engaged in the business of making available for purchase, by
Subscribers, multiple Channels of Video Programming in the City, which could also include the
City. For purposes of this Franchise, the term “Wireline MVPD” shall not be limited to entities
defined by the FCC as “multichannel video programming distributors” and shall include entities
that provide multiple Channels of Video Programming via open video systems, as defined by the
FCC, but it is the intent of the Grantee and the City that the term Wireline MVPD shall not include
small cell providers, unless the City has the legal authority under Applicable Law to regulate or to
impose cable franchise obligations upon such small cell providers.
SECTION 2 FRANCHISE
2.1 Grant of Franchise. The City hereby authorizes Grantee to occupy or use the City’s
Right-of-Ways subject to: 1) the provisions of this non-exclusive Franchise to provide Cable
Service within the City; and 2) all applicable provisions of the City Code. Unless this Franchise
has expired pursuant to Section 2.8 herein or this Franchise is otherwise terminated pursuant to
Section 11.2 herein, said Franchise shall constitute both a right and an obligation to provide Cable
Services as required by the provisions of this Franchise. Nothing in this Franchise shall be
construed to prohibit Grantee from: (1) providing services other than Cable Services to the extent
not prohibited by Applicable Law; or (2) challenging any exercise of the City’s legislative or
regulatory authority in an appropriate forum. The City hereby reserves all of its rights to regulate
such other services to the extent not prohibited by Applicable Law and no provision herein shall
be construed to limit or give up any right to regulate.
2.2 Reservation of Authority. The Grantee specifically agrees to comply with the lawful
provisions of the City Code and applicable regulations of the City. Subject to the police power
exception below, in the event of a conflict between: A) the lawful provisions of the City Code or
applicable regulations of the City; and B) this Franchise, the express provisions of this Franchise
shall govern. Subject to express federal and state preemption, the material terms and conditions
contained in this Franchise may not be unilaterally altered by the City through subsequent
amendments to the City Code, ordinances or any regulation of City, except in the lawful exercise
of City’s police power. Grantee acknowledges that the City may modify its regulatory policies by
Study session meeting of March 22, 2021 (Item No. 10)
Title: Proposed Comcast franchise agreement Page 10
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6323831v7
lawful exercise of the City’s police powers throughout the term of this Franchise. Grantee agrees
to comply with such lawful modifications to the City Code; however, Grantee reserves all rights it
may have to challenge such modifications to the City Code whether arising in contract or at law.
The City reserves all of its rights and defenses to such challenges whether arising in contract or at
law. Nothing in this Franchise shall (A) abrogate the right of the City to perform any public works
or public improvements of any description, (B) be construed as a waiver of any codes or ordinances
of general applicability promulgated by the City, or (C) be construed as a waiver or release of the
rights of the City in and to the Right-of-Ways.
2.3 Franchise Term. The term of this Franchise shall be ten (10) years from the Effective
Date, unless renewed, amended or extended by mutual written consent in accordance with Section
17.7 or terminated sooner in accordance with this Franchise.
2.4 Franchise Area. This Franchise is granted for the Franchise Area defined herein. Grantee
shall extend its Cable System to provide Service to any residential unit in the City in accordance
with Section 6.8 herein.
2.5 Franchise Nonexclusive. The Franchise granted herein shall be nonexclusive. The City
specifically reserves the right to grant, at any time, such additional franchises for a Cable System
as it deems appropriate provided, however, such additional grants shall not operate to materially
modify, revoke, or terminate any rights previously granted to Grantee other than as described in
Section 17.18. The grant of any additional franchise shall not of itself be deemed to constitute a
modification, revocation, or termination of rights previously granted to Grantee. Any additional
cable franchise grants shall comply with Minnesota Statutes § 238.08 and any other applicable
federal level playing field requirements.
2.6 Periodic Public Review of Franchise. The City may conduct a public review of the
Franchise. The purpose of any such review shall be to ensure, with the benefit of full opportunity
for public comment that the Grantee continues to effectively serve the public in accordance with
Applicable Law, and considering any new cable technology, Grantee’s performance with the
requirements of this Franchise, local regulatory environment, community needs and interests, and
other such factors. So long as Grantee receives reasonable notice, Grantee shall cooperate in good
faith. The review shall not operate to modify or change any provision of this Franchise without
mutual written consent in accordance with Section 17.7 of this Franchise. The City and Grantee
shall each be responsible for their own costs regarding the conduct of, or cooperation with, any
such periodic review.
2.7 Transfer of Ownership.
(a) A sale or transfer of this Franchise, including a sale or transfer by means of a
“fundamental corporate change,” as defined by Minnesota Statutes §238.083 Subd. 1, or
the sale or transfer of stock in Grantee so as to create a new “controlling interest,” as
defined in Minnesota Statutes §238.083 Subd. 6, in the Cable System, shall require the
written approval of the City. Grantee shall submit a written request to the City for approval,
provided, however, that said approval shall not be required where Grantee grants a security
interest in its Franchise and assets to secure an indebtedness. The written approval of the
City shall not be required under this section for internal corporate reorganizations involving
Study session meeting of March 22, 2021 (Item No. 10)
Title: Proposed Comcast franchise agreement Page 11
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Affiliates or pledges of the Franchise as collateral or security for any loan or other debt
instrument.
(b) City shall approve or deny in writing the sale or transfer request. City shall set forth
in writing with particularity its reason(s) for denying approval. City shall not unreasonably
withhold its approval.
(c) Any sale or transfer of stock in Grantee so as to create a new controlling interest in
the System shall be subject to the requirements of this Section 2.7. The term “controlling
interest” as used herein is not limited to majority stock ownership but includes actual
working control in whatever manner exercised. In no event shall a transfer or assignment
of ownership or control be approved without the transferee becoming a signatory to this
Franchise and assuming all rights and obligations thereunder, and assuming all other rights
and obligations of the transferor to the City.
(d) In accordance with Minnesota Statutes § 238.084, Subd. 1(y), the City shall have
the right to purchase the System in the event the Franchise or System is proposed to be
transferred or sold on the same terms and conditions as the offer pursuant to which transfer
notice was provided pursuant to this section. The City shall have thirty (30) Days from
receipt of an application for consent under this Section 2.7 in which to give notice of its
intention to consider exercising such right.
(e) If the City has issued a written notice of franchise violation in accordance with the
terms of this Franchise, the transfer may be conditioned upon the transferee agreeing to a
mutually acceptable remediation plan. The approval of any transfer of ownership pursuant
to this section shall not be deemed to waive any rights of the City to subsequently enforce
noncompliance issues relating to this Franchise even if such issues predated the approval,
whether known or unknown to the City.
2.8 Expiration. Upon expiration of the Franchise, the City shall have the right at its own
election and subject to Grantee’s rights under Section 626 of the Cable Act to:
(a) extend the Franchise, though nothing in this provision shall be construed to require
such extension;
(b) renew the Franchise, in accordance with Applicable Laws;
(c) invite additional franchise applications or proposals;
(d) terminate the Franchise subject to any rights Grantee has under Section 626 of the
Cable Act; or
(e) take such other action as the City deems appropriate.
2.9 Right to Require Removal of Property. At the expiration of the term for which this
Franchise is granted, provided no renewal is granted, or upon its forfeiture or revocation as
provided for herein, the City shall have the right to require Grantee to remove at Grantee’s own
expense all or any part of the Cable System from all Right-of-Ways and public ways within the
Study session meeting of March 22, 2021 (Item No. 10)
Title: Proposed Comcast franchise agreement Page 12
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Franchise Area within a reasonable time. If Grantee fails to do so, the City may perform the work
and collect the cost thereof from Grantee. However, Grantee shall have no obligation to remove
the Cable System where it utilizes the System to provide other non-Cable Services and has any
other authority under Applicable Law to maintain facilitates in the Public Rights-of-Way, or where
Grantee is able to find a purchaser of the Cable System who holds such authorization.
2.10 Continuity of Service Mandatory. It shall be the right of all Subscribers to receive Cable
Service in accordance with the terms of this Franchise and Applicable Law. In the event that
Grantee elects to overbuild, rebuild, modify, or sell the System, or the City revokes or fails to
renew the Franchise, Grantee shall make its best effort to ensure that all Subscribers receive
continuous uninterrupted service, regardless of the circumstances, while the Franchise remains
effective. In the event of expiration, revocation/termination, purchase, lease-purchase,
condemnation, acquisition, taking over or holding of plant and equipment, sale, lease, or other
transfer to any other Person, including any other grantee of a cable franchise, the current Grantee
shall cooperate fully to operate the System in accordance with the terms and conditions of this
Franchise for a temporary period sufficient in length to maintain continuity of service to all
Subscribers.
SECTION 3 OPERATION IN STREETS AND RIGHTS-OF-WAY
3.1 Use of Right-of-Ways.
(a) Grantee may, subject to the terms of this Franchise and the City Code, erect, install,
construct, repair, replace, reconstruct and retain in, on, over, under, upon, across and along
the Right-of-Ways within the City such lines, cables, conductors, ducts, conduits, vaults,
manholes, amplifiers, appliances, pedestals, attachments and other property and equipment
as are necessary and appurtenant to the operation of a Cable System within the City.
Without limiting the foregoing, Grantee expressly agrees that it will construct, operate and
maintain its Cable System in compliance with, and subject to, the requirements of the City
Code, including by way of example and not limitation, those requirements governing the
placement of Grantee’s Cable System; and with other applicable City Codes, and will
obtain, pay for and maintain all permits and bonds required by the City Code in addition to
those required in this Franchise.
(b) All wires, conduits, cable and other property and facilities of Grantee shall be so
located, constructed, installed and maintained as not to endanger or unnecessarily interfere
with the usual and customary trade, traffic and travel upon, or other use of the Right-of-
Ways of City. Grantee shall keep and maintain all of its property in good condition, order
and repair so that the same shall not menace or endanger the life or property of any Person.
Consistent with the mapping requirements in Section 4.6 of this Franchise, Grantee shall
keep accurate maps and records of all of its wires, conduits, cables and other property and
facilities located, constructed and maintained in the City.
(c) All wires, conduits, cables and other property and facilities of Grantee, shall be
constructed and installed in an orderly and professional manner in accordance with all
applicable requirements of the City Code and Applicable Law. All wires, conduits and
cables shall be installed, where possible, parallel with electric and telephone lines.
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Multiple cable configurations shall be arranged in parallel and bundled with due respect
for engineering considerations.
(d) Nothing in this Franchise shall be construed to prevent the City from constructing,
maintaining, repairing or relocating sewers; grading, paving, maintaining, repairing,
relocating and/or altering any Right-of-Way; constructing, laying down, repairing,
maintaining or relocating any water mains; or constructing, maintaining, relocating, or
repairing any sidewalk or other public work.
3.2 Construction or Alteration. Grantee shall in all cases comply with applicable sections of
the City Code, City resolutions and City regulations regarding the acquisition of permits and/or
such other items as may be reasonably required in order to construct, alter or maintain the Cable
System. Grantee shall, upon request, provide information to the City regarding its progress in
completing or altering the Cable System.
3.3 Non-Interference. Grantee shall exert its best efforts to construct and maintain a Cable
System so as not to interfere with other uses of Right-of-Ways. Grantee shall, where possible in
the case of above ground lines, make use of existing poles and other facilities available to Grantee.
When residents receiving underground service or who will be receiving underground service will
be affected by proposed construction or alteration, Grantee shall provide such notice as set fo rth
in the permit or in City Code of the same to such affected residents.
3.4 Consistency with Designated Use. Notwithstanding the above grant to use Right-of-
Ways, no Right-of-Way shall be used by Grantee if the City, in its sole opinion, determines that
such use is inconsistent with the terms, conditions or provisions by which such Right-of-Way was
created or dedicated, or presently used under Applicable Laws.
3.5 Undergrounding. Grantee shall in all cases comply with applicable sections of the City
Code, City resolutions and City regulations when installing facilities underground.
(a) Grantee shall place underground all of its transmission lines which are located or
are to be located above or within the Right-of-Ways of the City in the following cases:
(i) all other existing utilities are required to be placed underground by statute,
resolution, policy or other Applicable Law;
(ii) Grantee is unable to get pole clearance;
(iii) underground easements are obtained from developers of new residential
areas; or
(iv) utilities are overhead but residents prefer underground (undergrounding
provided at cost paid by benefitted residents).
(b) If an ordinance is passed which involves placing underground certain utilities
including Grantee’s cable plant which is then located overhead, Grantee shall participate
in such underground project and shall remove poles, cables and overhead wires if requested
to do so and place facilities underground. Nothing herein shall mandate that City provide
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reimbursement to Grantee for the costs of such relocation and removal. However, if the
City makes available funds for the cost of placing facilities underground, nothing herein
shall preclude the Grantee from participating in such funding to the extent consistent with
the City Code or Applicable Laws. If non-City funds, such as funds from state or federal
grant funding, are made available to place electric or telephone lines underground, nothing
herein shall prohibit Grantee from participating in such funding.
(c) Grantee shall use conduit or its functional equivalent to the greatest extent possible
for undergrounding, except for Drops from pedestals to Subscribers’ homes and for cable
on other private property where the owner requests that conduit not be used. Cable and
conduit shall be utilized which meets the highest industry standards for electronic
performance and resistance to interference or damage from environmental factors. Grantee
shall use, in conjunction with other utility companies or providers, common trenches for
underground construction wherever available.
3.6 Maintenance and Restoration.
(a) Restoration. In case of disturbance of any Right-of-Way, public way, paved area
or public improvement, Grantee shall, at its own cost and expense and in accordance with
the requirements of the City Code restore such Right-of-Way, public way, paved area or
public improvement to substantially the same condition as existed before the work
involving such disturbance took place. All requirements of this section pertaining to public
property shall also apply to the restoration of private easements and other private property.
Grantee shall perform all restoration work within a reasonable time and with due regard to
seasonal working conditions. If Grantee fails, neglects or refuses to make restorations as
required under this section and any applicable City Code provision, then the City may do
such work or cause it to be done, and the cost thereof to the City shall be paid by Grantee.
If Grantee causes any damage to private property in the process of restoring facilities,
Grantee shall repair such damage.
(b) Maintenance. Grantee shall maintain all above ground improvements that it places
on City Right-of-Ways pursuant to the City Code and any permit issued by the City. In
order to avoid interference with the City’s ability to maintain the Right-of-Ways, Grantee
shall provide such clearance as is required by the City Code and any permit issued by the
City. If Grantee fails to comply with this provision, and by its failure, property is damaged,
Grantee shall be responsible for all damages caused thereby.
(c) Disputes. In any dispute over the adequacy of restoration or maintenance relative
to this section, final determination shall be the prerogative of the City, Department of
Engineering and consistent with the City Code and any permit issued by the City.
3.7 Work on Private Property. Grantee, with the consent of property owners, shall have the
authority, pursuant to the City Code, to trim trees upon and overhanging Right-of-Ways, alleys,
sidewalks, and public ways so as to prevent the branches of such trees from coming in contact with
the wires and cables of Grantee, except that at the option of the City, such trimming may be done
by it or under its supervision and direction at the reasonable expense of Grantee.
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3.8 Relocation.
(a) Public Property. Grantee shall relocate its System and facilities in accordance with
the City Code. In addition, if, during the term of the Franchise, the City or any government
entity elects or requires a third party to alter, repair, realign, abandon, improve, vacate,
reroute or change the grade of any Right-of-Way or other public property; or to construct,
maintain or repair any public improvement; or to replace, repair install, maintain, or
otherwise alter any cable, wire conduit, pipe, line, pole, wire-holding structure, structure,
or other facility, including a facility used for the provision of utility or other services or
transportation of drainage, sewage or other liquids, for any public purpose, Grantee shall,
upon request, except as otherwise hereinafter provided, at its sole expense remove or
relocate as necessary its poles, wires, cables, underground conduits, vaults, pedestals,
manholes and any other facilities which it has installed. Nothing herein shall mandate that
City provide reimbursement to Grantee for the costs of such relocation and removal.
However, if the City makes available funds for the cost of placing facilities underground,
nothing herein shall preclude the Grantee from participating in such funding to the extent
consistent with the City Code or Applicable Laws. If non-City funds, such as funds from
state or federal grant funding, are made available to place electric or telephone lines
underground, nothing herein shall prohibit Grantee from participating in such funding.
(b) Utilities and Other Franchisees. If, during the term of the Franchise, another entity
which holds a franchise or any utility requests Grantee to remove or relocate such facilities
to accommodate the construction, maintenance or repair of the requesting party’s facilities,
or their more efficient use, or to “make ready” the requesting party’s facilities for use by
others, or because Grantee is using a facility which the requesting party has a right or duty
to remove, Grantee shall do so. The companies involved may decide among themselves
who is to bear the cost of removal or relocation, pursuant to City Code, and provided that
the City shall not be liable for such costs.
(c) Notice to Remove or Relocate. Any Person requesting Grantee to remove or
relocate its facilities shall give Grantee no less than forty-five (45) Days’ advance written
notice advising Grantee of the date or dates removal or relocation is to be undertaken,
provided that no advance written notice shall be required in emergencies or in cases where
public health and safety or property is endangered.
(d) Failure by Grantee to Remove or Relocate. If Grantee fails, neglects or refuses to
remove or relocate its facilities as directed by the City; or in emergencies or where public
health and safety or property is endangered, the City may do such work or cause it to be
done, and the cost thereof to the City shall be paid by Grantee. If Grantee fails, neglects
or refuses to remove or relocate its facilities as directed by another franchisee or utility,
that franchisee or utility may do such work or cause it to be done, and if Grantee would
have been liable for the cost of performing such work, the cost thereof to the party
performing the work or having the work performed shall be paid by Grantee.
(e) Procedure for Removal of Cable. Grantee shall not remove any underground cable
or conduit which requires trenching or other opening of the Right-of-Ways along the
extension of cable to be removed, except as hereinafter provided. Grantee may remove
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any underground cable from the Right-of-Ways which has been installed in such a manner
that it can be removed without trenching or other opening of the Right-of-Ways along the
extension of cable to be removed. Subject to Applicable Law, Grantee shall remove, at its
sole cost and expense, any underground cable or conduit by trenching or opening of the
Right-of-Ways along the extension thereof or otherwise which is ordered to be removed
by the City based upon a determination, in the sole discretion of the City, that removal is
required in order to eliminate or prevent a hazardous condition. In the event this occurs,
Grantee shall notify the City and follow the requirements of the City’s Department of
Engineering and City Code. Underground cable and conduit in the Right-of-Ways which
is not removed shall be deemed abandoned and title thereto shall be vested in the City.
(f) Movement of Buildings. Grantee shall, upon request by any Person holding a
building moving permit, franchise or other approval issued by the City, temporarily
remove, raise or lower its wire to permit the movement of buildings. The expense of such
removal, raising or lowering shall be paid by the Person requesting same, and Grantee shall
be authorized to require such payment in advance. The City shall require all building
movers to provide not less than fifteen (15) Days’ notice to the Grantee to arrange for such
temporary wire changes.
SECTION 4 REMOVAL OR ABANDONMENT OF SYSTEM
4.1 Removal of Cable System. In the event that: (l) the use of the Cable System is
discontinued for any reason for a continuous period of twelve (12) months; or (2) the Cable System
has been installed in a Right-of-Way without complying with the requirements of this Franchise
or the City Code, Grantee, at its expense shall, at the demand of the City remove promptly from
the Right-of-Ways all of the Cable System other than any which the City may permit to be
abandoned in place. In the event of any such removal Grantee shall promptly restore the Right-
of-Way to a condition as nearly as possible to its prior condition or other public places in the City
from which the System has been removed. However, Grantee shall have no obligation to remove
the Cable System where it utilizes the System to provide other non-Cable Services and has any
other authority under Applicable Law to maintain facilities in the Right-of-Way, or where Grantee
is able to find a purchaser of the Cable System who holds such authorization.
4.2 Abandonment of Cable System. In the event of Grantee’s abandonment of the Cable
System, City shall have the right to require Grantee to comply with the state right-of-way rules,
Minnesota Rules, Chapter 7819. The Cable System to be abandoned in place shall be abandoned
in the manner prescribed by the City. Grantee may not abandon any portion of the System without
having first given three (3) months written notice to the City. Grantee may not abandon any portion
of the System without compensating the City for damages resulting from the abandonment.
4.3 Removal after Abandonment or Termination. If Grantee has failed to commence
removal of System, or such part thereof as was designated by City, within thirty (30) Days after
written notice of City’s demand for removal consistent with Minnesota Rules, Chapter 7819, is
given, or if Grantee has failed to complete such removal within twelve (12) months after written
notice of City’s demand for removal is given, City shall have the right to apply funds secured by
the performance bond, and any pending letter of credit required by Section 10.1 of this Franchise,
toward removal and/or declare all right, title, and interest to the Cable System for the City with all
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rights of ownership including, but not limited to, the right to operate the Cable System or transfer
the Cable System to another for operation by it.
4.4 City Options for Failure to Remove Cable System . If Grantee has failed to complete
such removal within the time given after written notice of the City’s demand for removal is given,
the City shall have the right to exercise one of the following options:
(a) Declare all right, title and interest to the System for the City or its designee with all
rights of ownership including, but not limited to, the right to operate the System or transfer
the System to another for operation by it; or
(b) Declare the System abandoned and cause the System, or such part thereof as the
City shall designate, to be removed at no cost to the City. The cost of said removal shall
be recoverable from the performance bond, indemnity and penalty section provided for in
this Franchise or from Grantee directly.
(c) Upon termination of service to any Subscriber, Grantee shall promptly remove all
facilities and equipment from within the dwelling of a Subscriber who owns such dwelling
upon his or her written request, except as provided by Applicable Law. Such Subscribers
shall be responsible for any costs incurred by Grantee in removing the facilities and
equipment.
4.5 System Construction and Equipment Standards. The Cable System shall be installed
and maintained in accordance with standard engineering practices and shall conform, when
applicable, with the National Electrical Safety Code, the National Electrical Code and the FCC’s
Rules and Regulations.
4.6 System Maps and Layout. In addition to any generally applicable mapping requirements
included in the City Code and required of other utilities, Grantee shall maintain complete and
accurate system maps, which shall include trunks, distribution lines, and nodes. Such maps shall
include up-to-date route maps showing the location of the Cable System adjacent to the Right-of-
Ways. Grantee shall make all maps available for review by the appropriate City personnel.
SECTION 5 SYSTEM DESIGN AND CAPACITY
5.1 Availability of Signals and Equipment.
(a) The Cable System utilizes a fiber to the fiber node architecture, with fiber optic
cable deployed from Grantee’s headend to Grantee’s fiber nodes, tying into Grantee’s
coaxial Cable System serving Subscribers. The System shall pass a minimum of 750 MHz
(with a minimum passband of between 50 and 750 MHz) and shall be maintained to provide
to Subscribers a minimum of at least two hundred (200) or more activated downstream
video Channels, or such comparable video viewing capability as is provided in light of
developing technologies and video distribution practices in the future.
(b) The entire System shall be technically capable of transmitting industry-standard
digital television signals in a manner and quality consistent with applicable FCC
regulations.
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(c) Grantee agrees to maintain the Cable System in a manner consistent with, or in
excess of the specifications in Section 5.1 (a) and (b) throughout the term of the Franchise
with sufficient capability and technical quality to enable the implementation and
performance of all requirements of this Franchise, including the exhibits hereto, and in a
manner which meets or exceeds FCC technical quality standards at 47 C.F.R. § 76 Subpart
K, regardless of the particular format in which a signal is transmitted.
5.2 Equal and Uniform Service. Grantee shall provide access to equal and uniform Cable
Service throughout the City consistent with Applicable Law.
5.3 System Specifications.
(a) System Maintenance. In all construction and service provision activities, Grantee
shall meet or exceed the construction, technical performance, extension and service
requirements set forth in this Franchise.
(b) Emergency Alert Capability. At all times during the term of this Franchise, Grantee
shall provide and maintain an Emergency Alert System (“EAS”) consistent with
Applicable Law and regulations including 47 C.F.R., Part 11, and any Minnesota State
Emergency Alert System requirements. The City may identify authorized emergency
officials for activating the EAS insofar as the City’s process is consistent with the
Minnesota State Emergency Statewide Plan (“EAS Plan”). The City may also develop a
local plan containing methods of EAS message distribution, insofar as the local plan is
consistent with Applicable Laws and the EAS Plan.
(c) Standby Power. Grantee shall provide standby power generating capacity at the
Cable System control center and at all hubs. Grantee shall maintain standby power system
supplies, rated for at least two (2) hours’ duration, throughout the trunk and distribution
networks. In addition, Grantee shall have in place throughout the Franchise term a plan,
and all resources necessary for implementation of the plan, for dealing with outages of
more than two (2) hours.
(d) Technical Standards. The technical standards used in the operation of the Cable
System shall comply, at minimum, with the technical standards promulgated by the FCC
relating to Cable Systems pursuant to Title 47, Section 76, Subpart K of the Code of Federal
Regulations, as may be amended or modified from time to time, which regulations are
expressly incorporated herein by reference. The Cable System shall be installed and
maintained in accordance with standard engineering practices and shall conform with the
National Electrical Safety Code and all other Applicable Laws governing the construction
of the Cable System.
5.4 Performance Testing. Grantee shall perform all system tests at the intervals required by
the FCC, and all other tests reasonably necessary to determine compliance with technical standards
required by this Franchise. These tests may include, at a minimum:
(a) Initial proof of performance for any construction;
(b) Semi-annual compliance tests;
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(c) Tests in response to Subscriber complaints; and
(d) Tests reasonably requested by the City to demonstrate Franchise compliance.
(e) Written records of all system test results performed by or for Grantee shall be
maintained and shall be available for City inspection upon request.
5.5 Special Testing.
(a) Throughout the term of this Franchise, City shall have the right to inspect all
construction or installation work performed pursuant to the provisions of the Franchise. In
addition, City may require special testing of a location or locations within the System if
there is a particular matter of controversy or unresolved complaints regarding such
construction or installation work or pertaining to such location(s). Demand for such special
tests may be made on the basis of complaints received or other evidence indicating an
unresolved controversy or noncompliance. Such tests shall be limited to the particular
matter in controversy or unresolved complaints. City shall endeavor to so arrange its
request for such special testing so as to minimize hardship or inconvenience to Grantee or
to the Subscribers impacted by such testing.
(b) Before ordering such tests, Grantee shall be afforded thirty (30) Days following
receipt of written notice to investigate and, if necessary, correct problems or complaints
upon which tests were ordered. City shall meet with Grantee prior to requiring special tests
to discuss the need for such and, if possible, visually inspect those locations which are the
focus of concern. If, after such meetings and inspections, City wishes to commence special
tests and the thirty (30) Days have elapsed without correction of the matter in controversy
or unresolved complaints, the tests shall be conducted at Grantee’s expense by Grantee’s
qualified engineer. The City shall have a right to participate in such testing by having an
engineer of City’s choosing, and at City’s expense, observe and monitor said testing.
SECTION 6 PROGRAMMING AND SERVICES
6.1 Categories of Programming Service. Grantee shall provide Video programming services
in at least the following broad categories:
Local Broadcast (subject to federal carriage requirements)
Public Broadcast
News and Information
Sports
General Entertainment
Arts/Performance/Humanities
Science/Technology
Children/Family/Seniors
Foreign Language/Ethnic Programming
PEG Programming (to the extent required by the Franchise)
Movies
Leased Access, as required by Applicable Law
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6.2 Changes in Programming Services. Grantee shall provide at least thirty (30) Days’ prior
written notice to Subscribers and to the City of Grantee’s request to effectively delete any broad
category of programming or any Channel within its control, including all proposed changes in
bandwidth or Channel allocation and any assignments including any new equipment requirements
that may occur as a result of these changes.
6.3 Parental Control Device or Capability. Upon request by any Subscriber, Grantee shall
make available, at no additional cost to any Subscriber, a parental control or lockout device or
functionality that will enable the Subscriber to block all access to any and all Channels without
affecting those not blocked. Grantee shall inform Subscribers of the availability of the lockout
device or functionality at the time of original subscription and annually thereafter.
6.4 FCC Reports. The results of any tests required to be filed by Grantee with the FCC shall
also be copied to City within ten (10) Days of the conduct of the date of the tests.
6.5 Free Cable Service to Public Buildings.
(a) The parties acknowledge that as of the Effective Date of this Franchise, Grantee
continues to provide, free of charge, Basic Cable Service (including the PEG Channels) to
certain schools, libraries and public institutions w ithin the Franchise Area as set forth in
Exhibit A (“Complimentary Services”). In the event Grantee elects, to the extent permitted
by Applicable Laws, to invoice the City for Complimentary Services, the Grantee agrees
that it will do so only after providing City with one hundred twenty (120) Days’ prior
written notice. Grantee agrees not to unfairly or unreasonably discriminate against the City
with respect to other Minnesota served local franchising authorities, with respect to the
costs to be imposed for Complimentary Services.
(b) The City shall have right to discontinue receipt of all or a portion of the
Complimentary Service provided by Grantee in the event Grantee elects to impose a charge
against the City for the Complimentary Service as set forth in the preceding paragraph.
6.6 Limitation on Free Service. Notwithstanding anything to the contrary set forth in this
Section, Grantee shall not be required to provide Complimentary Service to such buildings unless
it is technically feasible. Outlets and maintenance of said Complimentary Service shall be
provided free of fees and charges.
6.7 Annexation. Unless otherwise provided by Applicable Law, including the City Code,
upon the annexation of any additional land area by City, the annexed area shall thereafter be subject
to all the terms of this Franchise upon sixty (60) Days written notification to Grantee of the
annexation by City. Unless otherwise required by Applicable Laws, nothing herein shall require
the Grantee to expand its Cable System to serve, or to offer Cable Service to any area annexed by
the City if such area is then served by another Wireline MVPD franchise to provide multichannel
video programming.
6.8 Line Extension.
(a) Grantee shall construct and operate its Cable System so as to provide Cable Service
within the Franchise Area where there exists a density equivalent of seven (7) dwelling
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units per one-quarter (1/4) mile of feeder cable as measured from the nearest active plant
of the Cable System if the extension is to be constructed using aerial plant, and nine (9)
dwelling units per one-quarter (1/4) mile of feeder cable as measured from the nearest
active plant if the extension is to be constructed using underground plant. The City, for its
part, shall endeavor to exercise reasonable efforts to require developers and utility
companies to provide the Grantee with at least fifteen (15) Days advance notice of an
available open trench for the placement of necessary cable.
(b) Any residential unit located within one hundred twenty-five (125) feet from the
nearest point of access on the Right-of-Way from which the Cable System is designed to
serve the site shall be connected to the Cable System at no charge other than the standard
installation charge. Grantee shall, within fifteen (15) Days request by any potential
Subscriber residing in City beyond the one hundred twenty-five (125) foot limit, provide a
quote identifying the costs associated with extending service to such Subscriber. Grantee
shall perform the extension of service as soon a reasonably possible and in no event longer
than thirty (30) Days, provided that the Subscriber shall pay the net additional Drop costs,
unless the Grantee agrees to waive said costs. To the extent consistent with Applicable
Laws, Grantee agrees that it shall impose installation costs for non-standard installations
in a uniform and nondiscriminatory manner throughout the City.
6.9 Nonvoice Return Capability. Grantee is required to use cable and associated electronics
having the technical capacity for nonvoice return communications.
SECTION 7 LOCAL PEG PROGRAMMING
7.1 Number of PEG Channels.
(a) Grantee shall continue to make available a minimum of five (5) PEG Channels in
Standard Definition (“SD”) and one (1) PEG Channel in High Definition (“HD”).
Throughout the term of this Franchise Grantee shall provide the PEG Channels on the Basic
Cable Service tier or such other most highly penetrated tier of Cable Service as may be
offered by Grantee in accordance with Applicable Law.
(b) For purposes of this Franchise, HD signal refers to a television signal delivering
picture resolution of either 720p or greater.
7.2 HD PEG Channels.
(a) Throughout the term of this Franchise, Grantee shall continue to make one (1) of
the PEG Channels available in both SD and HD format.
(b) Within ninety (90) Days of the Effective Date of this Franchise, Grantee shall make
a second PEG Channel available in both SD and HD format.
(c) At the time a second HD PEG Channel is provided, the City will give up one (1)
SD PEG Channel, so that the City will then have four (4) SD PEG Channels, and two (2)
HD PEG Channels. The City at its sole discretion will choose the SD PEG Channel that is
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given back to Grantee, and the PEG Channel that becomes capable of SD/HD
programming.
(d) Within one hundred eighty (180) Days of the Effective Date of this Franchise , the
City will have the option to give back, upon ninety (90) Days written notice to Grantee, a
second SD PEG Channel and Grantee shall provide SD/HD capability to one of the
remaining SD PEG Channels, so that the City will then have three (3) SD PEG Channels,
and three (3) HD PEG Channels. The City shall determine, in the City’s sole discretion,
which PEG Channel to give back, and which PEG Channel shall then be capable of SD/HD
programming.
(e) Nothing herein shall diminish any rights of the City to secure additional PEG
Channels pursuant to Minnesota Statutes Section 238.084, which is expressly incorporated
herein by reference.
(f) At such time as eighty percent (80%) of the Grantee’s Basic Service tier Channels
are provided exclusively in HD format, the City may request, and the Grantee shall provide
upon one hundred twenty (120) Days’ notice, that the remaining SD PEG Channels be
converted to HD Channels, subject to the other requirements of this section. In the event
that all PEG Channels are made available in HD, the City’s maximum number of PEG
Channels shall be three (3). For purposes of calculating the eighty percent (80%) threshold,
“on demand” programming and similar programming is not considered a Channel, even if
available to Basic Cable Service Subscribers.
(g) The City acknowledges that receipt of an HD format PEG Channel may require
Subscribers to buy or lease special equipment or pay additional HD charges applicable to
all HD services.
(h) Any costs of end-user equipment associated with the delivery of PEG Channels in
HD format beyond the Demarcation Point shall be borne by the City and may be paid for
out of PEG funds.
(i) Grantee shall have the right to use any technology to deploy or deliver HD signals
(including selection of compression, utilization of IP and other processing characteristics)
so long as it produces signal quality for the consumer that is reasonably comparable (from
the viewer’s standpoint) and functionally equivalent to similar commercial HD signals
carried on the Cable System.
7.3 Control of PEG Channels. The control and administration of the PEG Channels shall rest
with the City. The City may delegate, from time to time over the term of this Franchise, such
control and administration to various entities as determined in City’s sole discretion.
7.4 Transmission of PEG Channels. PEG Channels may be used for transmission of non-
video signals in compliance with Applicable Laws. This may include downstream transmission
of data using a protocol such as TCP/IP or current industry standards. Should Grantee develop the
capability to provide bi-directional data transmission, spectrum capacity shall be sufficient to allow
Subscribers to transmit data to PEG facilities.
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7.5 PEG Channel Locations.
(a) PEG Channels shall be carried on the Basic Cable Service tier as set forth in Section
7.1 herein. Nothing herein precludes the Grantee from charging Subscribers for equipment
needed for Basic Cable Service. Grantee shall initially continue cablecasting PEG access
programming on the Cable System on the same Channel designations as such programming
is cablecast within the City as of the Effective Date. In no event shall any PEG Channel
relocations be made prior to ninety (90) Days written notice to the City by Grantee, except
for circumstances beyond Grantee’s reasonable control. If relocated, the PEG Channels
will be located on consecutive Channel numbers in the SD Channel lineups as applicable
and within reasonable proximity to other broadcast or news Channels, excluding pay-per-
view programming offered by Grantee in the City. For new HD PEG Channels that are
provided pursuant to this Franchise, Grantee shall make reasonable commercial efforts to
assign the PEG Channels a number near the other HD local broadcast stations if such
Channel positions are not already taken, or if that is not possible, near HD news/public
affairs programming Channels if such Channel positions are not already taken, or if not
possible, as reasonably close as available Channel numbering will allow. Currently the
HD PEG Channels are located, or expected to be located, on 799, 798 and 853.
(b) Grantee agrees not to encrypt the PEG Channels differently than other commercial
Channels available on the Cable System.
(c) Grantee shall make reasonable efforts to minimize Channel movements for PEG
Channels and shall make reasonable efforts to locate both SD and HD PEG Channels in its
lineup in a manner that is easily accessible to Subscribers. In the event an SD PEG Channel
is moved, Grantee shall provide a rebranding reimbursement grant of One Thousand Five
Hundred and No/100 Dollars ($1,500) per relocated Channel.
7.6 Navigation to PEG Channels and Electronic Programming Guide. Grantee agrees that
if it utilizes any navigation interfaces under its control on its Cable System for all Channels, the
PEG Channels shall be treated in a non-discriminatory fashion consistent with Applicable Laws
so that Subscribers will have ready access to PEG Channels. Grantee will maintain the existing
ability of the City to place PEG Channel programming information on the interactive Channel
guide via the electronic programming guide (“EPG”) vendor (“EPG provider”) that Grantee
utilizes to provide the guide service. Grantee will be responsible for providing the designations
and instructions necessary for the PEG Channels to appear on the EPG. All costs and operational
requirements of the EPG provider shall be the responsibility of the City. City acknowledges that
the EPG may not be technically possible for all PEG programming, and that Grantee is not
responsible for operations of the EPG provider.
7.7 Ownership of PEG Channels. Grantee does not relinquish its ownership of or ultimate
right of control over a Channel by designating it for PEG use. A PEG access user – whether an
individual, education or government user – acquires no property or other interest by virtue of the
use of a Channel position so designated. Grantee shall not exercise editorial control over any
public, education, or government use of a Channel position, except Grantee may refuse to transmit
any public access program or portion of a public access program that contains obscenity,
indecency, or nudity in violation of Applicable Law.
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7.8 PEG Monitoring. Grantee shall provide the capability, without charge, for the City Hall
locations and the ParkTV master control facility listed, to monitor and verify the audio and visual
quality of PEG Channels received by Subscribers as well as the existing connections and
equipment at the ParkTV master control facility. This will include equipment comparable to that
deployed to residential cable Subscribers that will allow the City to verify the accuracy of EPG
listings for the PEG Channels consistent with what is currently provided. Grantee shall also
maintain one (1) feed to the City Hall office to provide the ability to monitor Subscriber services
and address Subscriber concerns, which feed shall include all cable boxes and platforms (i.e.
Xfinity X1).
7.9 PEG Transport. During the term of this Franchise, Grantee will provide PEG transport
as follows:
(a) The City may transmit signals for the PEG Channels in “real time” upstream from
the locations listed in Exhibit B from the ParkTV master control located at City Hall to
Grantee’s hub and head-end using existing fiber connections without additional charge
from Grantee.
(b) Grantee shall provide the capability for the City, either through a fiber connection,
DOCSIS cable modem solution, or other technology of Grantee’s choosing, to transmit live
programming from additional locations of the City’s choosing, subject to the City
providing or renting necessary modems, encoders, decoders or similar devices, configuring
such equipment, and removing such equipment in the event of interference with Grantee’s
delivery of Cable Service. To the extent a set of mobile DOCSIS cable modems (or such
other devices as may replace DOCSIS modems during the term of this Franchise) are
utilized, such modems shall be able to connect to the Subscriber network at permanent or
temporary Drops, subject to two (2) weeks prior written notice to Grantee and use upstream
capacity on the Subscriber network to transmit programming via the Subscriber network
and the connections to the ParkTV master control equal to or of better quality than the PEG
signals transmitted to Subscribers.
(i) The City shall be responsible for purchasing high speed internet service for
the transmission of live programming at market rates.
(ii) The City shall provide any necessary encoders, decoders or similar devices
and shall configure equipment and connections so that signals can be transmitted
to the Park TV master control.
(iii) Grantee may request that the City remove an encoder, or similar device if it
technically interferes with Grantee’s delivery of Cable Service.
(c) Grantee shall maintain the existing fiber paths/equipment and existing PEG
connectivity to the locations listed in Exhibit B during the term of this Franchise, without
additional charge (with no recurring, monthly costs or offsets, except that Grantee may
invoice the City for any actual repair or maintenance costs which shall not exceed Five
Thousand and No/100 Dollars ($5,000) per year and which shall be estimated to the City
in advance whenever possible, and shall be documented and invoiced to the City for
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payment) to permit the City to transport PEG programming. This will allow the City to
continue cablecasting PEG programming from the locations listed in Exhibit B and will
maintain connections from the City to Grantee’s hub and head-end without additional
charge or offsets.
(d) Grantee reserves any rights it may have under the FCC Section 621 Order, as
defined in Section 17.19 herein, to impose lawfully permitted charges for the PEG transport
and associated equipment as outlined in this paragraph, but Grantee may impose such
charges against the City only to the extent such charges are also imposed by Grantee on all
other Minnesota local franchising authorities where Grantee has similar PEG transport
obligations. Grantee agrees that any costs incurred by the City under this Section 7.9 shall
be considered a PEG capital cost unless prohibited by Applicable Law.
7.10 Future PEG Transport. At such time that the City determines:
(a) that the City desires the capacity to allow Subscribers in the City to receive PEG
programming (video or character generated) which may originate from schools, City
facilities, other government facilities or other designated facilities (other than those
indicated in Section 7.8); or
(b) that the City desires to establish or change a location from which PEG programming
is originated; or
(c) that the City desires to upgrade the connection to Grantee from an existing signal
point of origination,
the City will give Grantee written notice detailing the point of origination and the capability sought
by the City. After an agreement to reimburse Grantee for Grantee’s out of pocket time and material
costs, Grantee will implement any necessary Cable System changes within a reasonable period of
time. Nothing herein prevents the City, or a private contractor retained by the City, from
constructing said connection.
7.11 PEG Channel Carriage.
(a) The City or its designee shall be responsible for developing, implementing,
interpreting and enforcing rules for PEG Channel use.
(b) The Grantee shall monitor the PEG Channels for technical quality to ensure that
they meet FCC technical standards including those applicable to the carriage of PEG
Channels, provided however, that the Grantee is not responsible for the production quality
of PEG programming productions. The City, or its designee, shall be responsible for the
production and quality of all PEG programming. Grantee shall carry all components of the
SD/HD PEG Channel(s) including, but not limited to, closed captioning, stereo audio and
other elements associated with the programming.
7.12 PEG Programming Financial Support.
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(a) During the term of the Franchise, Grantee shall pay quarterly to the City a PEG Fee
in an amount equal to two percent (2%) of its quarterly Gross Revenues, for the duration
of this Franchise. Payments pursuant to this subsection shall be paid to the City on the
same schedule and including the same payment worksheets as the Franchise Fee payments
set forth in Section 16.1 of this Franchise.
(b) The PEG Fee may be used by City to fund PEG expenditures in accordance with
Applicable Law.
(c) The PEG Fee is not part of the Franchise Fee and instead falls within one or more
of the exceptions in 47 U.S.C. § 542. The PEG Fee may be categorized, itemized, and
passed through to Subscribers as permissible, in accordance with 47 U.S.C. § 542 or other
Applicable Laws.
7.13 PEG Technical Quality and Support.
(a) Grantee shall not be required to carry a PEG Channel in a higher quality format
than that of the Channel signal delivered to Grantee, but Grantee shall not implement a
change in the method of delivery of PEG Channels that results in a material degradation of
signal quality or impairment of viewer reception of PEG Channels, provided that this
requirement shall not prohibit Grantee from implementing new technologies also utilized
for commercial Channels carried on its Cable System. Grantee shall meet FCC signal
quality standards when offering PEG Channels on its Cable System and shall continue to
comply with closed captioning pass-through requirements. There shall be no significant
deterioration in a PEG Channels signal from the point of origination upstream to the point
of reception (hub or head end) or downstream to the Subscriber on the Cable System.
(b) Grantee shall provide a local (Twin Cities) response phone number, cell number,
and e-mail address for local (Twin Cities) technical support staff who are trained to
effectively respond to and resolve PEG related issues, who will respond to urgent tech-
support requests within fifteen (15) minutes, or as soon thereafter as reasonably possible,
and non-urgent tech support requests within three (3) hours or forty-eight (48) hours,
depending upon the response time needed. City technical staff will determine what
requests are urgent or non-urgent. City agrees to use best efforts to verify that the issue is
not on the City’s side of the demarcation point before a call is made to Grantee.
7.14 Change in Technology. In the event Grantee makes any change in the Cable System and
related equipment and facilities or in its signal delivery technology, which requires the City to
obtain new equipment in order to be compatible with such change for purposes of transport and
delivery of the PEG Channels, Grantee shall, at its own expense and free of charge to City or its
designated entities, purchase such equipment as may be necessary to facilitate the cablecasting of
the PEG Channels in accordance with the requirements of the Franchise.
7.15 Relocation of Grantee’s Headend. In the event Grantee relocates its headend, Grantee
will be responsible for replacing or restoring the existing dedicated fiber connections at Grantee’s
cost so that all the functions and capacity remain avail able, operate reliably and satisfy all
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applicable technical standards and related obligations of the Franchise free of charge to the City
or its designated entities.
7.16 Regional Channel Six. Grantee shall make available Regional Channel Six as long as it
is required to do so by Applicable Law.
7.17 Compliance with Minnesota Statutes Chapter 238. In addition to the requirements
contained in this Section 7 of this Franchise, Grantee and City shall comply with the PEG
requirements mandated by Minnesota Statutes § 238.084.
SECTION 8 REGULATORY PROVISIONS
8.1 Intent. The City shall have the right to administer and regulate activities under the
Franchise to the full extent permitted by Applicable Law. The City may delegate to any other
body or Person authority to administer the Franchise and to monitor the performance of Grantee
pursuant to the Franchise. Grantee shall cooperate with any such delegates of the City.
8.2 Delegation of Authority to Regulate. The City reserves the right to delegate its regulatory
authority wholly or in part to agents of the City, including, but not limited to, an agency which
may be formed to regulate several franchises in the region in a manner consistent with Applicable
Laws. As of the Effective Date of this Franchise, the City, or any designee thereof, shall have
continuing regulatory jurisdiction and supervision over the Cable System and Grantee’s operation
under the Franchise.
8.3 Regulation of Rates and Charges.
(a) Right to Regulate. The City reserves the right to regulate rates or charges for any
Cable Service within the limits of Applicable Law, to enforce rate regulations prescribed
by the FCC, and to establish procedures for said regulation or enforcement.
(b) Notice of Change in Rates and Charges. Throughout the term of this Franchise,
Grantee shall give the City and all Subscribers within the City at least thirty (30) Days’
notice of any intended modifications or additions to Subscriber rates or charges. Nothing
in this subsection shall be construed to prohibit the reduction or waiving of rates or charges
in conjunction with promotional campaigns for the purpose of attracting Subscribers or
users.
(c) Rate Discrimination Prohibited. Within any category of Subscribers, Grantee shall
not discriminate among Subscribers with regard to rates and charges made for any service
based on considerations of race, color, creed, sex, marital or economic status, national
origin, sexual preference, or (except as allowed by Applicable Law) neighborhood of
residence, except as otherwise provided herein; and for purposes of setting rates and
charges, no categorization of Subscribers shall be made by Grantee on the basis of those
considerations. Nevertheless, Grantee shall be permitted to establish (1) discounted rates
and charges for providing Cable Service to low-income, disabled, or low-income elderly
Subscribers, (2) promotional rates, and (3) bulk rate and package discount pricing.
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SECTION 9 BOND
9.1 Performance Bond. Upon the Effective Date of this Franchise and at all times thereafter,
for the term of this Franchise or any renewal running to the City Grantee shall file with the City at
its own expense, and at all times thereafter maintain in full force and effect, a bond in the sum of
Fifty Thousand and No/100 Dollars ($50,000.00) in such form and with such sureties as shall be
acceptable to City, conditioned upon the faithful performance by Grantee of this Franchise and
upon the further condition that in the event Grantee shall fail to comply with any law, ordinance
or regulation, there shall be recoverable jointly and severally from the principal and surety of the
bond, any damages or losses suffered by City as a result, including the full amount of any
compensation, indemnification or cost of removal of any property of Grantee, including a
reasonable allowance for attorneys’ fees and costs (with interest at two percent (2%) in excess of
the then prime rate), up to the full amount of the bond, and which bond shall further guarantee
payment by Grantee of all claims and liens against City, or any public property, and taxes due to
City, which arise by reason of the construction, operation, maintenance or use of the Cable System.
9.2 Rights. The rights reserved by City with respect to the bond are in addition to all other
rights the City may have under this Franchise or any other law.
9.3 Reduction of Bond Amount. City may, in its sole discretion, reduce the amount of the
bond.
9.4 Procedure to Draw on Bond.
(a) The City shall provide Grantee thirty (30) Days written notice of its intent to draw
on the performance bond together with the reason for such draw. Grantee shall have the
right to cure or petition for additional time.
(b) The time for Grantee to correct any violation or liability, shall be extended by the
City if the necessary action to correct such violation or liability is, in the sole determination
of the City, of such a nature or character as to require more than thirty (30) Days within
which to perform, provided Grantee provides written notice that it requires more than thirty
(30) Days to correct such violations or liability, commences the corrective action within
the thirty (30) Day period and thereafter uses reasonable diligence to correct the violation
or liability.
(c) In the event this Franchise is revoked by reason of default of Grantee in accordance
with the procedure set forth in Section 11, the City shall be entitled to collect from the
performance bond any damages incurred by the City as a result of said default or
revocation.
(d) Grantee shall be entitled to the return of the performance bond, or portion thereof,
as remains sixty (60) Days after the expiration of the term of the Franchise or revocation
for default thereof, provided the City has not notified Grantee of any damages incurred by
the City as a result of Grantee’s operations pursuant to the Franchise or as a result of said
default.
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(e) The rights reserved to the City with respect to the performance bond are in addition
to all other rights of the City whether reserved by this Franchise or authorized by law, and
no action, proceeding or exercise of a right with respect to the performance bond shall
affect any other right the City may have.
SECTION 10 LETTER OF CREDIT
10.1 Letter of Credit. If there is an uncured breach by Grantee of a material provision of this
Franchise or a pattern of repeated violations of any provision(s) of this Franchise that remain
uncured, then Grantee shall, upon written request, establish and provide to the City, as security for
the faithful performance by Grantee of all of the provisions of this Franchise, a letter of credit from
a financial institution satisfactory to the City in the amount of Twenty Thousand and No/100
Dollars ($20,000.00) (“Letter of Credit”). In no event shall Grantee fail to post a Twenty Thousand
and No/100 Dollars ($20,000.00) Letter of Credit within ten (10) Days following receipt of a notice
of franchise violation pursuant to this Section 10.1. The form, manner and content of the Letter
of Credit shall be subject to the approval of the City. Failure to post said Letter of Credit shall
constitute a separate material violation of this Franchise, unless the breach is cured within such ten
(10) Day period. The Letter of Credit shall serve as a common security for the faithful performance
by Grantee of all the provisions of this Franchise and compliance with all orders, permits and
directions of the City and the payment by Grantee of any claim, liens, costs, expenses and taxes
due the City which arise by reason of the construction, operation or maintenance of the Cable
System. If Grantee fails to establish the Letter of Credit as required, the City may take whatever
action is appropriate to require the establishment of that fund and may recover its costs, reasonable
attorneys’ fees, and an additional penalty of Five Thousand Dollars ($5,000) in that action.
10.2 Withdrawal of Funds. The Letter of Credit shall permit the City to withdraw funds upon
demand (sight draft). Grantee shall not use the Letter of Credit for other purposes and shall not
assign, pledge or otherwise use the Letter of Credit as security for any purpose.
10.3 Restoration of Funds. Within ten (10) Days after notice to it that any amount has been
withdrawn by the City from the Letter of Credit pursuant to Section 10.8, Grantee shall deposit a
sum of money sufficient to restore such the Letter of Credit to the required amount.
10.4 Liquidated Damages. In addition to recovery of any monies owed by Grantee to City or
damages to City as a result of any acts or omissions by Grantee pursuant to the Franchise, City in
its sole discretion may charge to and collect from the Letter of Credit the following liquidated
damages:
(a) For failure to provide data, documents, reports or information or to cooperate with
City during an application process, audit, or System review, the liquidated damage shall be
Two Hundred Fifty Dollars ($250.00) per Day for each Day, or part thereof, such failure
occurs or continues.
(b) For failure to comply with any of the provisions of this Franchise for which a
penalty is not otherwise specifically provided pursuant to this Section 10.4, the liquidated
damage shall be Two Hundred Fifty Dollars ($250.00) per Day for each Day, or part
thereof, such failure occurs or continues.
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(c) For failure to test, analyze and report on the performance of the System following
a request by City, the liquidated damage shall be Two Hundred Fifty Dollars ($250.00) per
Day for each Day, or part thereof, such failure occurs or continues.
(d) Forty-five Days following notice from City of a failure of Grantee to comply with
construction, operation or maintenance standards, the liquidated damage shall be Five
Hundred Dollars ($500.00) per Day for each Day, or part thereof, such failure occurs or
continues.
(e) For failure to provide the services Grantee has proposed, including but not limited
to the implementation and the utilization of the PEG Channels, the liquidated damage shall
be Two Hundred Fifty ($250.00) per Day for each Day, or part thereof, such failure occurs
or continues.
(f) For failure to provide the Letter of Credit required by this Section 10.1, the
liquidated damage shall be Two Hundred Fifty ($250.00) per Day for each Day, or part
thereof, such failure occurs or continues.
10.5 Each Violation a Separate Violation. Each violation of any provision of this Franchise
shall be considered a separate violation for which separate liquidated damages can be imposed.
10.6 Maximum 120 Days. Any liquidated damages for any given violation shall be imposed
upon Grantee for a maximum of one hundred twenty (120) Days. If after that amount of time
Grantee has not cured or commenced to cure the alleged breach to the satisfaction of the City, the
City may pursue all other remedies.
10.7 Withdrawal of Funds to Pay Taxes. If Grantee fails to pay to the City any taxes due and
unpaid; or fails to repay to the City, any damages, costs or expenses which the City shall be
compelled to pay by reason of any act or default of the Grantee in connection with this Franchise;
or fails, after thirty (30) Days’ notice of such failure by the City to comply with any provision of
the Franchise which the City reasonably determines can be remedied by an expenditure of the
Letter of Credit, the City may then withdraw such funds from the Letter of Credit. Payments are
not Franchise Fees as defined in Section 16 of this Franchise.
10.8 Procedure for Draw on Letter of Credit. Whenever the City finds that Grantee has
allegedly violated one (1) or more terms, conditions or provisions of this Franchise, a written notice
shall be given to Grantee. The written notice shall describe in reasonable detail the alleged
violation so as to afford Grantee an opportunity to remedy the violation. Grantee shall post the
Letter of Credit within ten (10) Days of the date of receipt of a written notice of violation, Grantee
shall have thirty (30) Days subsequent to receipt of the notice in which to correct the violation
before the City may require Grantee to make payment of damages, and further to enforce payment
of damages through the Letter of Credit. Grantee may, within ten (10) Days of receipt of notice,
notify the City that there is a dispute as to whether a violation or failure has, in fact, occurred.
Such notice by Grantee shall specify with particularity the matters disputed by Grantee and shall
stay the running of the thirty (30) Day cure period but shall not serve to delay Grantee’s obligation
to post the Letter of Credit within said ten (10) Day period following receipt of the notice of
violation.
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(a) City shall hear Grantee’s dispute at the next regularly scheduled or specially
scheduled City meeting. Grantee shall have the right to speak and introduce evidence. The
City shall determine if Grantee has committed a violation and shall make written findings
of fact relative to its determination. If a violation is found, Grantee may petition for
reconsideration.
(b) If after hearing the dispute, the claim is upheld by the City, then Grantee shall have
thirty (30) Days within which to remedy the violation before City may require payment of
all liquidated damages due it.
10.9 Time for Correction of Violation. The time for Grantee to correct any alleged violation
may be extended by the City if the necessary action to correct the alleged violation is of such a
nature or character as to require more than thirty (30) Days within which to perform provided
Grantee commences corrective action within fifteen (15) Days and thereafter uses reasonable
diligence, as determined by the City, to correct the violation.
10.10 Grantee’s Right to Pay Prior to Letter of Credit Draw. Grantee shall have the
opportunity to make prompt payment of any assessed liquidated damages and if Grantee fails to
promptly remit payment to the City, the City may resort to a draw from the Letter of Credit in
accordance with the terms of this Section 10 of the Franchise.
10.11 Failure to so Replenish Letter of Credit. If any Letter of Credit is not so replaced, City
may draw on said security fund for the whole amount thereof and hold the proceeds, without
interest, and use the proceeds to pay costs incurred by City in performing and paying for any or all
of the obligations, duties and responsibilities of Grantee under this Franchise that are not
performed or paid for by Grantee pursuant hereto, including attorneys’ fees incurred by the City
in so performing and paying. The failure to so replace any Letter of Credit may also, at the option
of City, be deemed a default by Grantee under this Franchise. The drawing on the Letter of Credit
by City and use of the money so obtained for payment or performance of the obligations, duties
and responsibilities of Grantee which are in default, shall not be a waiver or release of such default.
10.12 Collection of Funds Not Exclusive Remedy. The collection by City of any damages or
monies from the Letter of Credit shall not affect any other right or remedy available to City, nor
shall any act, or failure to act, by City pursuant to the Letter of Credit, be deemed a waiver of any
right of City pursuant to this Franchise or otherwise. Notwithstanding this section, however,
should the City elect to impose liquidated damages that remedy shall remain the City’s exclusive
remedy for the one hundred twenty (120) Day period set forth in Section 10.6.
SECTION 11 DEFAULT
11.1 Basis for Default. City shall give written notice of default to Grantee if City, in its sole
discretion, determines that Grantee has:
(a) Violated any material provision of this Franchise or the acceptance hereto or any
rule, order, regulation or determination of the City, state or federal government, not in
conflict with this Franchise;
(b) Attempted to evade any provision of this Franchise or the acceptance hereof;
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(c) Practiced any fraud or deceit upon City or Subscribers;
(d) Made a material misrepresentation of fact in the application for or negotiation of
this Franchise; or
(e) Incurred a twelve (12) month or more delay in the construction schedule.
11.2 Default Procedure. If Grantee fails to cure such default within thirty (30) Days after the
giving of such notice (or if such default is of such a character as to require more than thirty (30)
Days within which to cure the same, and Grantee fails to commence to cure the same within said
thirty (30) Day period and thereafter fails to use reasonable diligence, in City’s sole opinion, to
cure such default as soon as possible), then, and in any event, such default shall be a substantial
breach and City may elect to terminate the Franchise. The City may place the issue of revocation
and termination of this Franchise before the governing body of City at a regular meeting. If City
decides there is cause or reason to terminate, the following procedure shall be followed:
(a) City shall provide Grantee with a written notice of the reason or cause for proposed
termination and shall allow Grantee a minimum of thirty (30) Days subsequent to receipt
of the notice in which to correct the default.
(b) Grantee shall be provided with an opportunity to be heard at a public hearing prior
to any decision to terminate this Franchise.
(c) If, after notice is given and an opportunity to cure, at Grantee’s option, a public
hearing is held, and the City determines there was a violation, breach, failure, refusal or
neglect, the City may declare by resolution the Franchise revoked and of no further force
and effect unless there is compliance within such period as the City may fix, such period
may not be less than thirty (30) Days. No opportunity for compliance need be granted for
fraud or misrepresentation.
11.3 Failure to Enforce. Grantee shall not be relieved of any of its obligations to comply
promptly with any provision of the Franchise by reason of any failure of the City to enforce prompt
compliance, and City’s failure to enforce shall not constitute a waiver of rights or acquiescence in
Grantee’s conduct.
11.4 Compliance with the Laws.
(a) If any federal or state law or regulation shall require or permit City or Grantee to
perform any service or act or shall prohibit City or Grantee from performing any service
or act which may be in conflict with the terms of this Franchise, then as soon as possible
following knowledge thereof, either party shall notify the other of the point in conflict
believed to exist between such law or regulation. Grantee and City shall conform to state
laws and rules regarding cable communications not later than one (1) year after they
become effective, unless otherwise stated, and shall conform to federal laws and
regulations regarding cable as they become effective.
(b) If any term, condition or provision of this Franchise or the application thereof to
any Person or circumstance shall, to any extent, be held to be invalid or unenforceable, the
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remainder hereof and the application of such term, condition or provision to Persons or
circumstances other than those as to whom it shall be held invalid or unenforceable shall
not be affected thereby, and this Franchise and all the terms, provisions and conditions
hereof shall, in all other respects, continue to be effective and complied with, provided the
loss of the invalid or unenforceable clause does not substantially alter the agreement
between the parties. In the event such law, rule or regulation is subsequently repealed,
rescinded, amended or otherwise changed so that the provision which had been held invalid
or modified is no longer in conflict with the law, rules and regulations then in effect, said
provision shall thereupon return to full force and effect and shall thereafter be binding on
Grantee and City.
SECTION 12 FORECLOSURE AND RECEIVERSHIP
12.1 Foreclosure. Upon the foreclosure or other judicial sale of the Cable System, Grantee
shall notify the City of such fact and such notification shall be treated as a notification that a change
in control of Grantee has taken place, and the provisions of this Franchise governing the consent
to transfer or change in ownership shall apply without regard to how such transfer or change in
ownership occurred.
12.2 Receivership. The City shall have the right to cancel this Franchise subject to any
applicable provisions of state law, including the Bankruptcy Act, one hundred twenty (120) Days
after the appointment of a receiver or trustee to take over and conduct the business of Grantee,
whether in receivership, reorganization, bankruptcy or other action or proceeding, unless such
receivership or trusteeship shall have been vacated prior to the expiration of said one hundred
twenty (120) Days, or unless:
(a) Within one hundred twenty (120) Days after his election or appointment, such
receiver or trustee shall have fully complied with all the provisions of this Franchise and
remedied all defaults thereunder; and,
(b) Such receiver or trustee, within said one hundred twenty (120) Days, shall have
executed an agreement, duly approved by the Court having jurisdiction in the premises,
whereby such receiver or trustee assumes and agrees to be bound by each and every
provision of this Franchise.
SECTION 13 REPORTING REQUIREMENTS
13.1 Quarterly Reports. Within forty (45) Days after the end of each calendar quarter, Grantee
shall submit to the City along with its Franchise Fee payment, a report showing the basis for
computation of the Franchise Fee and PEG Fee payments signed by an authorized representative
of Grantee in form and substance substantially equivalent to Exhibit C attached hereto. This report
shall separately indicate Grantee’s Gross Revenues within the City including, but not limited to
such items as listed in the definition of “Gross Revenues” at Section 1.20 of this Franchise.
13.2 Monitoring and Compliance Reports. Upon request, but no more than once a year,
Grantee shall provide a written report of any and all FCC technical performance tests for the
residential network required in FCC Rules and Regulations as now or hereinafter constituted.
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13.3 Other Reports. Upon request of the City and in no event later than thirty (30) Days from
the date of receipt of such request, Grantee shall, free of charge, prepare and furnish to the City, at
the times and in the form prescribed, such additional reports with respect to its operation, affairs,
transactions, or property, as may be reasonably necessary to ensure compliance with the terms of
this Franchise. Grantee and City may in good faith agree upon taking into consideration Grantee’s
need for the continuing confidentiality as prescribed herein. Neither City nor Grantee shall
unreasonably demand or withhold information requested pursuant with the terms of this Franchise.
13.4 Confidential and Trade Secret Information. The City shall follow, all Applicable Laws
and procedures for protecting any confidential and trade secret information of Grantee that may
be provided to City. Grantee shall not be relieved of its obligation to provide information or data
required under this Franchise simply because the City may not be able to guarantee its
confidentiality. Grantee acknowledges that the City shall at all times comply with the Minnesota
Government Data Practices Act (“MGDPA”) related to the release of information and nothing
herein shall be read to modify the City’s obligations under the MGDPA.
13.5 Communications with Regulatory Agencies.
(a) Upon written request, Grantee shall submit to City copies of any pleading,
applications, notifications, communications and documents of any kind, submitted by
Grantee or its Affiliates to any federal, state or local courts, regulatory agencies and other
government bodies if such documents directly relate to the operations of Grantee’s Cable
System within the Franchise Area. Grantee shall submit such documents to City no later
than thirty (30) Days after receipt of City’s request. Grantee shall not claim confidential,
privileged or proprietary rights to such documents unless under Applicable Law such
documents have been determined to be confidential by a court of competent jurisdiction,
or a federal or state agency. With respect to all other reports, documents and notifications
provided to any federal, state or local regulatory agency as a routine matter in the due
course of operating Grantee’s Cable System within the Franchise Area, Grantee shall make
such documents available to City upon City’s written request.
(b) In addition, Grantee and its Affiliates shall within ten (10) Days of any
communication to or from any judicial or regulatory agency regarding any alleged or actual
violation of this Franchise, City regulation or other requirement relating to the System, use
its best efforts to provide the City a copy of the communication, whether specifically
requested by the City to do so or not.
SECTION 14 CUSTOMER SERVICE POLICIES
14.1 Response to Customers and Cooperation with City. Grantee shall promptly respond to
all requests for service, repair, installation and information from Subscribers. Grantee
acknowledges the City’s interest in the prompt resolution of all cable complaints and shall work
in close cooperation with the City to resolve complaints. Grantee shall provide the City with the
name, address and telephone number of an office that will act as the Grantee’s agent to receive
complaints, regarding quality of service, equipment malfunctions, billings, and similar matters.
Grantee will maintain an “escalated complaint process” to address unresolved complaints from
Subscribers. A team of specifically identified employees of Grantee shall be available to the City
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via email and telephone for reporting issues. These specifically identified employees of Grantee
will have the ability to take actions to resolve Subscriber complaints relating to billing, property
or service restoration, technical appointments, or any other Subscriber matters when necessary.
Grantee will follow-up with the City in writing by email (and by phone when necessary) with a
summary of the results of the complaint(s).
14.2 Customer Service Agreement and Written Information. Grantee shall provide to
Subscribers a comprehensive service agreement and information in writing for use in establishing
Subscriber service. Written information shall, at a minimum, contain the following information:
(a) Services to be provided and rates for such services.
(b) Billing procedures.
(c) Service termination procedure.
(d) Change in service notifications.
(e) Converter/Subscriber terminal equipment policy.
(f) How complaints are handled including Grantee’s procedure for investigation and
resolution of Subscriber complaints.
(g) The name, address, and phone number of the Person identified by the City as
responsible for handling cable questions and complaints for the City. This information
shall be prominently displayed, and Grantee shall submit the information to the City for
review and approval as to its content and placement on Subscriber billing statements. A
copy of the written information shall be provided to each Subscriber at the time of initial
connection and any subsequent reconnection.
14.3 Reporting Complaints.
(a) The requirements of this Section 14.3 shall be subject to federal law regarding
Subscriber privacy. Grantee shall maintain all Subscriber data available for City
inspection. Subscriber data shall include the date, name, address, telephone number of
Subscriber complaints as well as the subject of the complaint, date and type of action taken
to resolve the complaint, any additional action taken by Grantee or the Subscriber. The
Grantee shall provide City with reasonable access to the information maintained by
Grantee pursuant to this Section 14.3, subject to federal law regarding Subscriber privacy.
(b) Subject to federal law and upon reasonable request by the City, Grantee shall,
within a reasonable amount of time, provide City with such Subscriber data for its review.
14.4 Customer Service Standards.
(a) The City hereby adopts the customer service standards set forth in Part 76,
(§76.309) of the FCC’s rules and regulations, as amended.
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(b) Grantee shall provide City with information which shall describe in detail Grantee’s
compliance with each and every term and provision of Section 14.6.
(c) Grantee shall comply in all respects with the customer service requirements
established by the FCC and those set forth herein. The City reserves the right to enact
additional consumer protection laws or requirements to the extent such requirements are
not inconsistent with, and preempted by, the FCC’s customer service standards.
14.5 Local Office. Grantee shall maintain a convenient local customer service and bill payment
location for matters such as receiving Subscriber payments, handling billing questions, equipment
replacement and customer service information.
14.6 Cable System Office Hours and Telephone Availability. Grantee shall comply with the
standards and requirements for customer service set forth below during the term of this Franchise.
(a) Grantee will maintain a local, toll-free or collect call telephone access line which
will be available to its Subscribers twenty-four (24) hours a Day, seven (7) days a week.
(i) Trained Grantee representatives will be available to respond to customer
telephone inquiries during Normal Business Hours.
(ii) After Normal Business Hours, the access line may be answered by a service
or an automated response system, including an answering machine. Inquiries
received after Normal Business Hours must be responded to by a trained Grantee
representative on the next business day.
(b) Under Normal Operating Conditions, telephone answer time by a customer
representative, including wait time, shall not exceed thirty (30) seconds when the
connection is made. If the call needs to be transferred, transfer time shall not exceed thirty
(30) seconds. These standards shall be met no less than ninety percent (90%) of the time
under Normal Operating Conditions, measured on a quarterly basis.
(c) Grantee shall not be required to acquire equipment or perform surveys to measure
compliance with the telephone answering standards above unless an historical record of
complaints indicates a clear failure to comply.
(d) Under Normal Operating Conditions, the customer will receive a busy signal less
than three percent (3%) of the time.
(e) Customer service center and bill payment locations will be open at least during
Normal Business Hours and will be conveniently located.
(f) The Grantee shall utilize such equipment and software and keep such records as are
necessary or required to enable the City to determine whether the Grantee is complying
with all telephone answering standards required by applicable customer service regulations
and laws, as amended from time to time.
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14.7 Installations, Outages and Service Calls. Under Normal Operating Conditions, each of
the following standards will be met no less than ninety-five percent (95%) of the time measured
on a quarterly basis:
(a) Standard Installations will be performed within seven (7) business days after an
order has been placed. “Standard” Installations are those that are located up to one hundred
twenty-five (125) feet from the existing distribution system as more specifically set forth
in Section 6.8(b).
(b) Excluding conditions beyond the control of Grantee, Grantee will begin working
on “service interruptions” promptly and in no event later than twenty-four (24) hours after
the interruption becomes known. Grantee must begin actions to correct other Service
problems the next business day after notification of the Service problem.
(c) The “appointment window” alternatives for installations, Service calls, and other
installation activities will be either a specific time or, at maximum, a four (4) hour time
block during Normal Business Hours. (Grantee may schedule Service calls and other
installation activities outside of Normal Business Hours for the express convenience of the
customer.)
(d) Grantee may not cancel an appointment with a customer after the close of business
on the business day prior to the scheduled appointment.
(e) If Grantee’s representative is running late for an appointment with a customer and
will not be able to keep the appointment as scheduled, the customer will be contacted. The
appointment will be rescheduled, as necessary, at a time which is convenient for the
customer.
14.8 Communications between Grantee and Subscribers.
(a) Refunds. Refund checks will be issued promptly, but no later than either:
(i) The customer’s next billing cycle following resolution of the request or
thirty (30) Days, whichever is earlier, or
(ii) The return of the equipment supplied by Grantee if Cable Service is
terminated.
(b) Credits. Credits for Cable Service will be issued no later than the customer’s next
billing cycle following the determination that a credit is warranted.
14.9 Billing:
(a) Consistent with 47 C.F.R. § 76.1619, bills will be clear, concise and
understandable. Bills must be fully itemized, with itemizations including, but not limited
to, Basic Cable Service and premium Cable Service charges and equipment charges. Bills
will also clearly delineate all activity during the billing period, including optional charges,
rebates and credits.
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(b) In case of a billing dispute, Grantee must respond to a written complaint from a
Subscriber within thirty (30) Days.
14.10 Subscriber Information.
(a) Grantee will provide written information on each of the following areas at the time
of installation of Cable Service, at least annually to all Subscribers, and at any time upon
request:
(i) Products and services offered;
(ii) Prices and options for programming services and conditions of subscription
to programming and other services;
(iii) Installation and service maintenance policies;
(iv) Instructions on how to use the Cable Service;
(v) Channel positions of programming carried on the System; and
(vi) Billing and complaint procedures, including the address and telephone
number of the City’s office.
(b) Subscribers shall be advised of the procedures for resolution of complaints about
the quality of the television signal delivered by Grantee, including the address of the
responsible officer of the City. Subscribers will be notified of any changes in rates,
programming services or Channel positions as soon as possible in writing. Notice must be
given to Subscribers a minimum of thirty (30) Days in advance of such changes if the
change is within the control of Grantee. In addition, Grantee shall notify Subscribers thirty
(30) Days in advance of any significant changes in the information required by this Section
14.10.
14.11 Notice of Rate or Programming Changes. Grantee shall give thirty (30) Days written
notice to both Subscribers and the City before implementing any rate or Service change within the
control of Grantee. For the purpose of this section a “Service change” shall not include channel
additions or moves that do not impact rates. Such notice shall state the precise amount of any rate
change and briefly explain in readily understandable fashion the cause of the rate change (e.g.,
inflation, change in external costs or the addition/deletion of Channels). When the change involves
the addition or deletion of Channels, each Channel added or deleted must be separately identified.
For purposes of the carriage of digital broadcast signals, Grantee need only identify for
Subscribers, the television signal added and not whether that signal may be multiplexed during
certain dayparts.
14.12 Subscriber Contracts. Grantee shall, upon written request, provide the City with any
standard form residential Subscriber contract utilized by Grantee. If no such written contract
exists, Grantee shall file with the City a document completely and concisely stating the length and
terms of the Subscriber contract offered to customers. The length and terms of any standard form
Subscriber contract(s) shall be available for public inspection during Normal Business Hours. A
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list of Grantee’s current Subscriber rates and charges for Cable Service and a current Channel line-
up showing all Channels available in the City shall be maintained on file with City and shall be
available for public inspection. Grantee shall also provide on a monthly basis a copy of a sample
Subscriber bill to the City.
14.13 Refund Policy. If a Subscriber’s Cable Service is interrupted or discontinued, without
cause, for twenty-four (24) or more consecutive hours, Grantee shall, upon request by the
Subscriber, credit such Subscriber pro rata for such interruption. For this purpose, every month
will be assumed to have thirty (30) Days.
14.14 Late Fees. Grantee shall comply with all Applicable Laws with respect to any assessment,
charge, cost, fee or sum, however characterized, that Grantee imposes upon a Subscriber for late
payment of a bill. The City reserves the right to enforce Grantee’s compliance with all Applicable
Laws to the maximum extent legally permissible.
14.15 Disputes. All Subscribers and members of the general public may direct complaints,
regarding Grantee’s service or performance to the chief administrative officer of the City or the
chief administrative officer’s designee, which may be a board or a commission of the City.
14.16 Subscriber Bills. Subscriber bills shall be designed in such a way as to present the
information contained therein clearly and comprehensibly to Subscribers, and in a way that: (A) is
not misleading; and (B) does not omit material information. Notwithstanding anything to the
contrary in Section 14.9, above, Grantee may, in its sole discretion, consolidate costs on Subscriber
bills as may otherwise be permitted by Section 622(c) of the Cable Act (47 U.S.C. § 542(c)).
14.17 Failure to Resolve Complaints. Grantee shall resolve a complaint within thirty (30) Days
in a manner deemed reasonable by the City under the terms of the Franchise.
14.18 Notification of Complaint Procedure. Grantee shall have printed clearly and
prominently on each Subscriber bill and in the customer service agreement provided for in Section
14.2, the twenty-four (24) hour Grantee phone number for Subscriber complaints. Additionally,
Grantee shall provide information to Subscribers concerning the procedures to follow when they
are unsatisfied with measures taken by Grantee to remedy their complaint. This information will
include the phone number of the City office or Person designated to handle complaints.
Additionally, Grantee shall state that complaints should be made to Grantee prior to contacting the
City.
14.19 Subscriber Privacy.
(a) To the extent required by Minnesota Statutes § 238.084 Subd. 1(s) Grantee shall
comply with the following:
(i) No signals including signals of a Class IV Channel may be transmitted from
a Subscriber terminal for purposes of monitoring individual viewing patterns or
practices without the express written permission of the Subscriber. The request for
permission must be contained in a separate document with a prominent statement
that the Subscriber is authorizing the permission in full knowledge of its provisions.
Such written permission shall be for a limited period of time not to exceed one (1)
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year which may be renewed at the option of the Subscriber. No penalty shall be
invoked for a Subscriber’s failure to provide or renew such permission. The
permission shall be revocable at any time by the Subscriber without penalty of any
kind whatsoever.
(ii) No information or data obtained by monitoring transmission of a signal
from a Subscriber terminal, including but not limited to lists of the names and
addresses of Subscribers or any lists that identify the viewing habits of Subscribers
shall be sold or otherwise made available to any party other than to Grantee or its
agents for Grantee’s business use, and also to the Subscriber subject of that
information, unless Grantee has received specific written permission from the
Subscriber to make such data available. The request for permission must be
contained in a separate document with a prominent statement that the Subscriber is
authorizing the permission in full knowledge of its provisions. Such written
permission shall be for a limited period of time not to exceed one (1) year which
may be renewed at the option of the Subscriber. No penalty shall be invoked for a
Subscriber’s failure to provide or renew such permission. The permission shall be
revocable at any time by the Subscriber without penalty of any kind whatsoever.
(iii) Written permission from the Subscriber shall not be required for the
conducting of system wide or individually addressed electronic sweeps for the
purpose of verifying System integrity or monitoring for the purpose of billing.
Confidentiality of such information shall be subject to the provision set forth in
subparagraph (ii) of this section.
14.20 Grantee Identification. Grantee shall provide all customer service technicians and all
other Grantee employees entering private property with appropriate picture identification so that
Grantee employees may be easily identified by the property owners and Subscribers.
SECTION 15 SUBSCRIBER PRACTICES
15.1 Subscriber Rates. There shall be no charge for disconnection of any installation or outlet.
If any Subscriber fails to pay a properly due monthly Subscriber fee, or any other properly due fee
or charge, Grantee may disconnect the Subscriber’s service outlet, provided, however, that such
disconnection shall not be affected until after the later of: (i) forty-five (45) Days after the original
due date of said delinquent fee or charge; or (ii) ten (10) Days after delivery to Subscriber of
written notice of the intent to disconnect. If a Subscriber pays before expiration of the later of (i)
or (ii), Grantee shall not disconnect. After disconnection, upon payment in full of the delinquent
fee or charge and the payment of a reconnection charge, Grantee shall promptly reinstate the
Subscriber’s Cable Service.
15.2 Refunds to Subscribers shall be made or determined in the following manner:
(a) If Grantee fails, upon request by a Subscriber, to provide any service then being
offered, Grantee shall promptly refund all deposits or advance charges paid for the service
in question by said Subscriber. This provision does not alter Grantee’s responsibility to
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Subscribers under any separate contractual agreement or relieve Grantee of any other
liability.
(b) If any Subscriber terminates any monthly service because of failure of Grantee to
render the service in accordance with this Franchise, Grantee shall refund to such
Subscriber the proportionate share of the charges paid by the Subscriber for the services
not received. This provision does not relieve Grantee of liability established in other
provisions of this Franchise.
(c) If any Subscriber terminates any monthly service prior to the end of a prepaid
period, a proportionate amount of any prepaid Subscriber service fee, using the number of
days as a basis, shall be refunded to the Subscriber by Grantee.
SECTION 16 COMPENSATION AND FINANCIAL PROVISIONS
16.1 Franchise Fees.
(a) During the term of the Franchise, Grantee shall pay quarterly to the City or its
delegate a Franchise Fee in an amount equal to five percent (5%) of its quarterly Gross
Revenues. If any such law, regulation or valid rule alters the five percent (5%) Fr anchise
Fee ceiling established by the Cable Act, then the City shall have the authority to (but shall
not be required to) increase the Franchise Fee accordingly, provided such increase is for
purposes not inconsistent with Applicable Law.
(b) Franchise Fees shall be paid quarterly. The payments shall be made to the City
within forty-five (45) Days following the end of each calendar quarter. Grantee shall
include with each quarterly payment a Franchise Fee payment worksheet, in form and
substance substantially similar to Exhibit C, signed by an authorized representative of
Grantee. No acceptance of any payment shall be construed as an accord that the amount
paid is in fact, the correct amount, nor shall such acceptance of payment be construed as a
release of any claim which the City may have for further or additional sums payable under
the provisions of this section.
(c) Neither current nor previously paid Franchise Fees shall be subtracted from the
Gross Revenue amount upon which Franchise Fees are calculated and due for any period,
unless otherwise required by Applicable Law.
(d) Any Franchise Fees owing pursuant to this Franchise which remain unpaid after the
due dates specified herein shall be delinquent and shall immediately begin to accrue interest
at twelve percent (12%) per annum or two percent (2%) above prime lending rate as quoted
by the Wall Street Journal, whichever is greater.
16.2 Auditing and Financial Records. Throughout the term of this Franchise, the Grantee
agrees that the City or its designee, upon reasonable prior written notice of twenty (20) Days to
the Grantee, may review such of the Grantee’s books and records regarding the operation of the
Cable System and the provision of Cable Service in the Franchise Area which are reasonably
necessary to monitor and enforce Grantee’s compliance with the provisions of this Franchise.
Grantee shall provide such requested information as soon as possible and in no event more than
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twenty (20) Days unless Grantee explains that it is not feasible to meet this timeline and provides
a written explanation for the delay and an estimated reasonable date for when such information
will be provided. All such documents pertaining to financial matters that may be the subject of an
inspection by the City shall be retained by the Grantee for a minimum period of seven (7) years,
pursuant to Minnesota Statutes § 541.05. The Grantee shall not deny the City access to any of the
Grantee’s records on the basis that the Grantee’s records are under the control of any parent
corporation, Affiliated entity or a third party. The City may request in writing copies of any such
records or books that are reasonably necessary, and the Grantee shall provide such copies within
thirty (30) Days of the receipt of such request. One (1) copy of all reports and records required
under this or any other section shall be furnished to the City at the sole expense of the Grantee. If
the requested books and records are too voluminous, or for security reasons cannot be copied or
removed, then the Grantee may request, in writing within ten (10) Days of receipt of such request,
that the City inspect them at the Grantee’s local offices or at one of Grantee’s offices more
convenient to City or its duly authorized agent. If any books or records of the Grantee are not kept
in such office and not made available in copies to the City upon written request as set forth above,
and if the City determines that an examination of such records is necessary for the enforcement of
this Franchise, then all reasonable travel expenses incurred in making such examination shall be
paid by the Grantee.
16.3 Review of Record Keeping Methodology. Upon request, Grantee agrees to meet with a
representative of the City or its designee to review its methodology of record-keeping, financial
reporting, computing Franchise Fee obligations, and other procedures the understanding of which
the City deems necessary for understanding the meaning of reports and records.
16.4 Audit of Records. The City or its authorized agent may at any time and at the City’s own
expense conduct an independent audit of the revenues of Grantee in order to verify the accuracy
of Franchise Fees or PEG Fees paid to the City. Grantee and each parent company of Grantee
shall cooperate fully in the conduct of such audit. In the event it is determined through such audit
that Grantee has underpaid Franchise Fees in an amount of five percent (5%) or more than was
due the City, then Grantee shall reimburse the City for the entire cost of the audit within thirty (30)
Days of the completion and acceptance of the audit by the City.
16.5 Records to be reviewed. The City agrees to request access to only those books and
records, in exercising its rights under this section, which it deems reasonably necessary for the
enforcement and administration of the Franchise.
16.6 Indemnification by Grantee. Grantee shall, at its sole expense, fully indemnify, defend
and hold harmless the City, and in their capacity as such, the officers, agents and employees thereof
(collectively the “Indemnified Parties”), from and against any and all claims, suits, actions,
demands, liability and judgments for damage or otherwise except those arising wholly from
negligence on the part of the Indemnified Parties; for actual or alleged injury to Persons or
property, including loss of use of property due to an occurrence, whether or not such property is
physically damaged or destroyed, in any way arising out of or through or alleged to arise out of or
through the acts or omissions of Grantee or its officers, agents, employees, or contractors or to
which Grantee’s or its officers, agents, employees or contractors acts or omissions in any way
contribute, and whether or not such acts or omissions were authorized or contemplated by this
Franchise or Applicable Law; arising out of or alleged to arise out of any claim for damages for
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Grantee’s invasion of the right of privacy, defamation of any Person, firm or corporation, or the
violation of infringement of any copyright, trademark, trade name, service mark or patent, or of
any other right of any Person, firm or corporation; arising out of or alleged to arise out of Grantee’s
failure to comply with the provisions of any Applicable Law. Nothing herein shall be deemed to
prevent the Indemnified Parties from participating in the defense of any litigation by their own
counsel at such parties’ expense. Such participation shall not under any circumstances relieve
Grantee from its duty of defense against liability or of paying any judgment entered against the
Indemnified Parties.
16.7 Grantee Insurance. Upon the Effective Date, Grantee shall, at its sole expense take out
and maintain during the term of this Franchise public liability insurance with a company licensed
to do business in the State of Minnesota with a rating by A.M. Best & Co. of not less than “A-”
that shall protect the Grantee, City and its officials, officers, directors, employees and agents from
claims which may arise from operations under this Franchise, whether such operations be by the
Grantee, its officials, officers, directors, employees and agents or any subcontractors of Grantee.
This liability insurance shall include, but shall not be limited to, protection against claims arising
from bodily and personal injury and damage to property, resulting from Grantee’s vehicles,
products and operations. The amount of insurance for single limit coverage applying to bodily
and personal injury and property damage shall not be less than Four Million Dollars ($4,000,000).
The liability policy shall include:
(a) The policy shall provide coverage on an “occurrence” basis.
(b) The policy shall cover personal injury as well as bodily injury.
(c) The policy shall cover blanket contractual liability subject to the standard universal
exclusions of contractual liability included in the carrier’s standard endorsement as to
bodily injuries, personal injuries and property damage.
(d) Broad form property damage liability shall be afforded.
(e) City shall be named as an additional insured on the policy.
(f) An endorsement shall be provided which states that the coverage is primary
insurance with respect to claims arising from Grantee’s operations under this Franchise
and that no other insurance maintained by the City will be called upon to contribute to a
loss under this coverage.
(g) Standard form of cross-liability shall be afforded.
(h) An endorsement stating that the policy shall not be canceled without thirty (30)
Days’ notice of such cancellation given to City.
(i) City reserves the right to adjust the insurance limit coverage requirements of this
Franchise no more than once every three (3) years. Any such adjustment by City will be
no greater than the increase in the State of Minnesota Consumer Price Index (all
consumers) for such three (3) year period.
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(j) Upon the Effective Date, Grantee shall submit to City a certificate documenting the
required insurance, as well as any necessary properly executed endorsements. The
certificate and documents evidencing insurance shall be in a form acceptable to City and
shall provide satisfactory evidence that Grantee has complied with all insurance
requirements. Renewal certificates shall be provided to City prior to the expiration date of
any of the required policies. City will not be obligated, however, to review such
endorsements or certificates or other evidence of insurance, or to advise Grantee of any
deficiencies in such documents and receipt thereof shall not relieve Grantee from, nor be
deemed a waiver of, City’s right to enforce the terms of Grantee’s obligations hereunder.
City reserves the right to examine any policy provided for under this paragraph or to require
further documentation reasonably necessary to form an opinion regarding the adequacy of
Grantee’s insurance coverage.
SECTION 17 MISCELLANEOUS PROVISIONS
17.1 Posting and Publication. The Summary of Ordinance for Publication (“Summary”)
attached hereto as Exhibit D shall be published at least once in the official newspaper of the City.
Grantee shall assume the cost of posting and publication of the Summary as such posting and
publication is required by law and such is payable upon Grantee ’s filing of acceptance of this
Franchise.
17.2 Guarantee of Performance. Grantee agrees that it enters into this Franchise voluntarily
in order to secure and in consideration of the grant from the City of a ten (10) year Franchise.
Performance pursuant to the terms and conditions of this Franchise is guaranteed by Grantee.
17.3 Minnesota Statutes. This Franchise cannot be changed orally but only by an instrument
in writing executed by the parties. This Franchise is made pursuant to Minnesota Statutes Chapter
238 and the City Code and is intended to comply with all requirements set forth therein.
17.4 Consent. Wherever the consent or approval of either Grantee or the City is specifically
required in this agreement, such consent or approval shall not be unreasonably withheld.
17.5 Prior Franchise Terminated. The cable franchise originally granted by Ordinance No.
2309-06 is hereby terminated. Nothing herein shall serve to waive any rights the parties may have
under previous agreements subject only to the applicable state statute of limitations.
17.6 Franchise Acceptance. No later than thirty (30) Days following City Council approval of
this Franchise, Grantee shall execute and return to the City two (2) original franchise agreements.
The executed agreements shall be returned to the City accompanied by performance bonds and
evidence of insurance, all as provided in this Franchise. In the event Grantee fails to accept this
Franchise, or fails to provide the required documents, this Franchise shall be null and void. The
Grantee agrees that despite the fact that its written acceptance may occur after the Effective Date,
the obligations of this Franchise shall become effective on the Effective Date.
17.7 Amendment of Franchise. Grantee and City may agree, from time to time, to amend this
Franchise. Such written amendments may be made to address technology changes or advances
subsequent to a review session pursuant to Section 2.6 or at any other time if City and Grantee
agree that such an amendment will be in the public interest or if such an amendment is required
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due to changes in federal, state or local laws; provided, however, nothing herein shall restrict City’s
exercise of its police powers.
17.8 Notice. All notices, reports, or demands required to be given in writing under this
Franchise shall be deemed to be given when delivered personally to any officer of the Grantee or
the City’s administrator of this Franchise during Normal Business Hours or forty-eight (48) hours
after it is deposited in the United States mail in a sealed envelope, with registered or certified mail
postage prepaid thereon, addressed to the party to whom notice is being given, as follows:
If to City: City Manager
City of St. Louis Park
5005 Minnetonka Boulevard
St. Louis Park, MN 55416
If to Grantee: General Manager
Comcast
10 River Park Plaza
St. Paul, MN 55107
Such addresses may be changed by either party upon notice to the other party given as provided in
this section.
Recognizing the widespread usage and acceptance of electronic forms of communication, emails
will be acceptable as formal notification related to the conduct of general business amongst the
parties to this contract, including but not limited to programming and price adjustment
communications. Such communication should be addressed and directed to the Person of record
as specified above.
17.9 Force Majeure. In the event that either party is prevented or delayed in the performance
of any of its obligations, under this Franchise by reason of acts of God, floods, fire, hurricanes,
tornadoes, earthquakes, or other unavoidable casualties, insurrection, war, riot, vandalism, strikes,
delays in receiving permits where it is not the fault of Grantee, public easements, sabotage, acts or
omissions of the other party, or any other similar event beyond the reasonable control of that party,
it shall have a reasonable time under the circumstances to perform such obligation under this
Franchise, or to procure a substitute for such obligation to the reasonable satisfaction of the other
party.
17.10 Work of Contractors and Subcontractors. Work by contractors and subcontractors is
subject to the same restrictions, limitations and conditions as if the work were performed by
Grantee. Grantee shall be responsible for all work performed by its contractors and subcontractors,
and others performing work on its behalf as if the work were performed by it and shall ensure that
all such work is performed in compliance with this Franchise, the City Code and other Applicable
Law, and shall be jointly and severally liable for all damages and correcting all damage caused by
them. It is Grantee’s responsibility to ensure that contractors, subcontractors or other Persons
performing work on Grantee’s behalf are familiar with the requirements of this Franchise, the City
Code and other Applicable Laws governing the work performed by them.
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17.11 Governing Law. This Franchise shall be deemed to be executed in the State of Minnesota,
and shall be governed in all respects, including validity, interpretation and effect, and construed in
accordance with, the laws of the State of Minnesota, as applicable to contracts entered into and
performed entirely within the state.
17.12 Nonenforcement by City. Grantee shall not be relieved of its obligation to comply with
any of the provisions of this Franchise by reason of any failure of the City or to enforce prompt
compliance.
17.13 Captions. The paragraph captions and headings in this Franchise are for convenience and
reference purposes only and shall not affect in any way the meaning of interpretation of this
Franchise.
17.14 Calculation of Time. Where the performance or doing of any act, duty, matter, payment
or thing is required hereunder and the period of time or duration for the performance is prescribed
and fixed herein, the time shall be computed so as to exclude the first and include the last Day of
the prescribed or fixed period or duration of time. When the last Day of the period falls on
Saturday, Sunday or a legal holiday that Day shall be omitted from the computation and the next
business Day shall be the last Day of the period.
17.15 Rights Cumulative. All rights and remedies given to the City by this Franchise or retained
by the City herein shall be in addition to and cumulative with any and all other rights and remedies,
existing or implied, now or hereafter available to the City, at law or in equity, and such rights and
remedies shall not be exclusive, but each and every right and remedy specifical ly given by this
Franchise or otherwise existing or given may be exercised from time to time and as often and in
such order as may be deemed expedient by the City and the exercise of one or more rights or
remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any
other right or remedy.
17.16 Grantee Acknowledgment of Validity of Franchise. Grantee acknowledges that it has
had an opportunity to review the terms and conditions of this Franchise and that under current law
Grantee believes that said terms and conditions are not unreasonable or arbitrary, and that Grantee
believes the City has the power to make the terms and conditions contained in this Franchise.
Grantee agrees that it will not, at any time, set up against the City in any claim or proceeding, any
condition or term of the Franchise as unreasonable, arbitrary, void as of the Effective Date of this
Franchise or that the City had no power or authority to make such term or condition.
17.17 Survival of Terms. Upon the termination or forfeiture of the Franchise, Grantee shall no
longer have the right to occupy the Right-of-Ways for the purpose of providing Cable Service.
However, Grantee’s obligations to the City (other than the obligation to provide service to
Subscribers) shall survive according to their terms.
17.18 Competitive Equity.
(a) The City reserves the right to grant additional franchises or similar authorizations
to provide Video Programming services via Cable Systems or other Wireline MVPDs. The
City intends to treat Wireline MVPDs in a nondiscriminatory manner to the extent
permissible under Applicable Law. If, following the Effective Date of this Franchise, the
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City grants such an additional franchise or authorization to a Wireline MVPD and Grantee
believes the City has done so on terms materially more favorable than the obligations under
this Franchise, then the provisions of this Section 17.18 will apply.
(b) As part of this Franchise, the City and Grantee have mutually agreed upon the
following terms as a condition of granting the Franchise, which terms may place the
Grantee at a significant competitive disadvantage if not required of a Wireline MVPD: the
obligation to pay to the City a Franchise Fee, Gross Revenues as provided for and defined
in this Franchise, and the obligation to comply with the requirements in this Franchise
regarding PEG funding, PEG Channels, records and reports, security instruments, audits,
dispute resolution, remedies, notice and opportunity to cure, and customer service
obligations (hereinafter “Material Obligations”). The City and Grantee further agree that
this provision shall not require a word for word identical franchise or authorization for
competitive equity so long as the regulatory and financial burdens on each entity are
materially equivalent.
(c) Within one (1) year of the adoption of a Wireline MVPD franchise or similar
authorization, Grantee must notify the City in writing of the Material Obligations in this
Franchise that Grantee believes exceed the Material Obligations of the wireline
competitor’s franchise or similar authorization. The City and Grantee agree that they will
use best efforts in good faith to negotiate Grantee’s proposed Franchise modifications, and
that such negotiation will proceed and conclude within a ninety (90) Day time period,
unless that time period is reduced or extended by mutual agreement of the parties. If the
City and Grantee reach agreement on the Franchise modifications pursuant to such
negotiations, then the City shall amend this Franchise to include the modifications. If the
City and Grantee fail to reach agreement in such negotiations, Grantee may, at its option,
elect to replace this Franchise by opting into the franchise or other similar lawful
authorization that the City grants to another Wireline MVPD (with the understanding that
Grantee may use its current system design and technology infrastructure to meet any
requirements of the new franchise), so as to ensure that the regulatory and financial burdens
on each entity are equivalent. If Grantee so elects, the City shall immediately commence
proceedings to replace this Franchise with the franchise issued to the other Wireline
MVPD. Notwithstanding anything contained in this section to the contrary, the City shall
not be obligated to amend or replace this Franchise unless the new entrant makes Cable
Services or similar downstream Video programming service available for purchase by
Subscribers or customers under its franchise agreement with or similar authorization from
the City.
(d) In the event the City disputes that the Material Obligations are different, Grantee
may bring an action in federal or state court for a determination as to whether the Material
Obligations are different and as to what franchise amendments would be necessary to
remedy the disparity. Alternatively, Grantee may notify the City that it elects to
immediately commence the renewal process under 47 U.S.C. § 546 and to have the
remaining term of this Franchise shortened to not more than thirty (30) months.
(e) Nothing in this Section 17.18 is intended to alter the rights or obligations of either
party under Applicable Law, and it shall only apply to the extent permitted under
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Applicable Law and FCC orders. In no event will the City be required to refund or to offset
against future amounts due the value of benefits already received.
(f) To the extent the City has legal authority to grant a franchise or similar
authorization to a wireless provider of Cable Service, the competitive equity rights
provided by this section shall apply with respect to Material Obligations imposed in such
franchise or other similar agreement. In the event of a dispute regarding the City’s legal
authority, Grantee shall have the burden to demonstrate that such authority exists or does
not exist.
17.19 In-Kind Cable-Related Contributions. In the event the FCC Section 621 Order (Third
Report and Order in MB Docket No. 05-311 adopted by the FCC on August 1, 2019) (herein “621
Order”) is stayed or overturned in whole or in part by action of the FCC or through judicial review,
and franchise-mandated Complimentary Services to public buildings as set forth in Section 6.5
herein and the PEG transport as provided in Section 7.9(a) and (c) herein are no longer considered
to be “Franchise Fees” under 47 U.S.C. §542, then for the remaining Franchise term, Grantee shall
provide, free of charge, complimentary Basic Cable Service to the Complimentary Service
locations listed in Exhibit A and the PEG transport as provided in Section 7.9(a) and (c).
Passed and adopted this _____ day of 2021.
ATTEST CITY OF ST. LOUIS PARK, MINNESOTA
By: By:
Its: City Clerk Its: Mayor
ACCEPTED: This Franchise is accepted, and we agree to be bound by its terms and conditions.
COMCAST OF MINNESOTA LLC
Date: By:
Its:
SWORN TO BEFORE ME this
___ day of ___________, 2021.
NOTARY PUBLIC
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EXHIBIT A
LIST OF FREE SERVICE TO BUILDINGS
Building Name Address
1. St. Louis Park City Hall 5005 Minnetonka Boulevard St. Louis Park, MN 55416
2.
St. Louis Park Recreation Center and
Wolfe Park Pavilion 3700 Monterey Drive St. Louis Park, MN 55416
3. Municipal Service Center 7305 Oxford Street St. Louis Park, MN 55426
4. Fire Station One 3750 Wooddale Avenue St. Louis Park, MN 55416
5. Fire Station Two 2262 Louisiana Avenue St. Louis Park, MN 55426
6. Westwood Hills Nature Center 8300 W. Franklin Avenue St. Louis Park, MN 55426
7. Police Station 3015 Raleigh Avenue St. Louis Park, MN 55416
8.
The Shops at West End Police
Substation* 1623 West End Boulevard St. Louis Park, MN 55416
9. Excelsior & Grand Police Substation 4717 Park Commons Drive St. Louis Park, MN 55416
10.
The Shoppes at Knollwood Police
Substation* 8332 Highway 7 St. Louis Park, MN 55426
ISD 283:
11. Lenox Community Center 6715 Minnetonka Blvd St. Louis Park, MN 55426
12. Aquila Elementary School 8500 West 31st Street St. Louis Park, MN 55426
13. Peter Hobart Elementary School 6500 West 26th Street St. Louis Park, MN 55416
14. Susan Lindgren Elementary School 4801 West 41st Street St. Louis Park, MN 55416
15. Park Spanish Immersion School 9400 Cedar Lake Road St. Louis Park, MN 55426
16. St. Louis Park Middle School 2025 Texas Avenue South St. Louis Park, MN 55426
17. St. Louis Park High School 6425 West 33rd Street St. Louis Park, MN 55416
18. Central Community Center 6300 Walker Street St. Louis Park, MN 55416
* Following the outcome of the appeal of the 621 Order consistent with Section 17.19 of this Franchise, and u pon the
City’s written request, Grantee shall, if permitted by Applicable Law, provide Complimentary Service to locations #8
and #10 above.
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EXHIBIT B
PEG TRANSPORT
Building Name Address
1. City Hall 5005 Minnetonka Boulevard
2. St. Louis Park High School 6425 West 33rd Street
3. St. Louis Park High School Football Field 6525 West Lake Street
4. Rec Center, Amphitheatre and the Banquet Room 3700 Monterey Drive
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EXHIBIT C
FRANCHISE FEE PAYMENT WORKSHEET
TRADE SECRET – CONFIDENTIAL
PEG Fee Factor: 2%
PEG Fee
Nothing in this Franchise Fee Payment Worksheet shall serve to modify the definition of “Gross Revenues” set forth
in the Franchise.
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EXHIBIT D
SUMMARY OF ORDINANCE FOR PUBLICATION
AN ORDINANCE GRANTING A FRANCHISE TO COMCAST OF MINNESOTA, LLC TO
CONSTRUCT, OPERATE AND MAINTAIN A CABLE SYSTEM IN THE CITY OF S T.
LOUIS PARK, MINNESOTA SETTING FORTH CONDITIONS ACCOMPANYING THE
GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE
SYSTEM AND THE PUBLIC RIGHTS-OF-WAY; AND PRESCRIBING PENALTIES FOR
THE VIOLATION OF THE PROVISIONS HEREIN.
On , 2021, the City of St. Louis Park, Minnesota (“City”) adopted an ordinance
granting a Cable Television Franchise to Comcast of Minnesota, LLC (“Comcast”). The Franchise
serves two (2) purposes. First, it is intended to provide for and specify the means to attain the best
possible cable service for the public by providing requirements for cable with respect to technical
standards, customer service obligations, and related matters. Second, it grants a non-exclusive
cable television franchise to Comcast, to operate, construct and maintain a cable system within the
City and contains specific requirements for Comcast to do so.
The franchise includes the following: 1) a franchise fee of five percent (5%) of Comcast’s annual
gross revenues; 2) a franchise term of ten (10) years; 3) a list of schools and public buildings
entitled to receive complimentary cable service; 4) dedicated channel capacity for public,
education and government (“PEG”) access programming; 5) customer service standards regarding
Comcast’s cable services; and 6) a performance bond to enforce Comcast’s compliance with the
franchise.
It is hereby determined that publication of this title and summary will clearly inform the public of
the intent and effect of Ordinance No. . A copy of the entire ordinance shall be
posted at the St. Louis Park City Hall.
It is hereby directed that only the above title and summary of Ordinance No. be published,
conforming to Minnesota Statutes Section 331A.01, with the following:
NOTICE
Persons interested in reviewing a complete copy of the Ordinance may do so at the St. Louis Park
City Hall at 5005 Minnetonka Boulevard, St. Louis Park, MN 55416 during the hours of 7:30 a.m.
and 4:30 p.m., Monday through Friday.
Yes No
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Passed by the St. Louis Park City Council this day of , 2021.
ATTEST: , Mayor
,
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