Loading...
HomeMy WebLinkAbout4 - 10-21-2024 - Utilities Committee Agenda CITY OF RENTON AGENDA - Utilities Committee Meeting 2:30 PM - Monday, October 21, 2024 7th Floor Council Conference Room/Videoconference 1. EXTENSION OF CINGULAR/AT&T SMALL CELL FRANCHISE a) AB - 3680 Community & Economic Development Department recommends adopting an ordinance to grant a five-year extension to the franchise (Ordinance No. 5936) with New Cingular Wireless PCS, LLC, operating as AT&T, which will extend the franchise until November 13, 2029 and generate anticipated revenues of $17,500 over the five-year period. 2. 2025 AND 2026 UTILITY REVENUE REQUIREMENTS, CAPITAL IMPROVEMENT PROGRAM, AND FEES a) AB - 3686 Public Works Utility Systems Division provides detailed information about utility rates that will be separately recommended for consideration by the Committee of the Whole as part of the upcoming 2025-2026 biennium budget adoption process. 3. EMERGING ISSUES IN UTILITIES a) Disruptions to Regional Glass Recycling If you would like to attend this week's meeting remotely, you can do so by going to https://us02web.zoom.us/j/83091818834?pwd=THk4aTBVc2piMFhNRmxFTm03UEY1QT09 Zoom Meeting ID: 830 9181 8834, Passcode: 009336 You can call through Zoom at (253) 215-8782 and use the Meeting ID. AB - 3680 City Council Regular Meeting - 07 Oct 2024 SUBJECT/TITLE: Extension of Cingular/AT&T Small Cell Franchise RECOMMENDED ACTION: Refer to Utilities Committee DEPARTMENT: Community & Economic Development Department STAFF CONTACT: Nathan Janders, Development Engineering Manager EXT.: 7382 FISCAL IMPACT SUMMARY: The current franchise has been in effect for a period of nearly 5 years. In the 5-year period, a total of four lease agreements were issued resulting in a revenue of $4,075.36. AT&T terminated two of the four lease agreements and the anticipated revenue for the remaining two lease agreements over the next 5 years is $17,500. Revenue may increase if additional leases are applied for or decrease if existing leases are terminated. SUMMARY OF ACTION: Ordinance 5936 (Franchise) was signed November 4, 2019, granting New Cingular Wireless PCS, LLC, operating as AT&T, (Franchisee) a Franchise to install small cell wireless facilities within City Right-of-Way. Cingular and AT&T have merged, and Cingular/AT&T is a successor in interest. The Franchise has a 5-year term with a requirement to extend an additional 5 years provided the Franchisee makes a written request no less than sixty days before expiration and that the Franchisee is not nor has been in default with the Franchise terms. The Franchisee has complied with these requirements; providing a written request more than sixty days prior to the expiration and is not, nor has been, in default of the Franchise. EXHIBITS: A. AT&T Renton Extension Letter dated 5.29.24 B. Ordinance 5936 C. Draft Ordinance Extending Ordinance 5936 STAFF RECOMMENDATION: Adopt ordinance granting an additional 5-year franchise term. AGENDA ITEM #1. a) AT&T Services, Inc Network Real Estate Administration 1025 Lenox Park Blvd. NE 3rd Floor Atlanta, Georgia 30319 KD Renewal Notice FA:14825825 MARKET NAME: Pacific Northwest AGREEMENT ID: Renton Ordinance No. 5936 September 30, 2024 Administrator, Community & Economic Development Department City of Renton 1055 South Grady Way Renton WA 98057 RE: Notice of Request to Extend Franchise Term – City Ordinance No. 5936 granting a franchise dated November 4, 2019 (the “Franchise”) by and between the City of Renton (“City”) and New Cingular Wireless PCS, LLC (“Franchisee”) Dear Administrator, Community & Economic Development Department: Pursuant to Section 1.1 of the Franchise, please accept this letter as Franchisee’s written request that the term of the Franchise be extended for an additional five (5) year term, commencing on November 4, 2024 and expiring on November 13, 2029. Thank you for your consideration and time this matter. Should you have any questions, please contact me at 425-898-3396. Sincerely, Cara Lehman New Cingular Wireless PCS, LLC By: AT&T Mobility Corporation Its: Manager AGENDA ITEM #1. a) 1 CITY OF RENTON,WASHINGTON ORDINANCE NO.5936 AN ORDINANCE OF THE CITY OF RENTON,WASHINGTON,GRANTING TO NEW CINGULAR WIRELESS PCS,LLC AND ITS AFFILIATES,SUCCESSORS AND ASSIGNS, THE RIGHT,PRIVILEGE,AUTHORITY AND NONEXCLUSIVE FRANCHISE FOR FIVE YEARS,TO CONSTRUCT,MAINTAIN,OPERATE,REPLACE AND REPAIR A TELECOMMUNICATIONS NETWORK FOR SMALL CELL TECHNOLOGY,IN,ACROSS, OVER,ALONG,UNDER,THROUGH AND BELOW CERTAIN DESIGNATED PUBLIC RIGHTS OF WAY OF THE CITY OF RENTON,WASHINGTON. WHEREAS,New Cingular Wireless PCS,LLC the Franchisee”)has requested that the Renton City Council grant a nonexclusive franchise this Franchise”),and WHEREAS,the Renton City Council has the authority to grant Franchises for the use of its streets and other public properties pursuant to RCW 35A.47.040,as allowed by this franchise; NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RENTON,WASHINGTON,DO ORDAIN AS FOLLOWS: Section I.Franchise Granted. Section I.1 Pursuant to RCW 35A.47.040,the City of Renton,a Washington municipal corporation hereinafter the City”),hereby grants to the Franchisee,its affiliates,heirs, successors,legal representatives and assigns,subject to the terms and conditions hereinafter set forth,a Franchise for a period of five 5)years,beginning on the effective date of this ordinance, set forth in Section XXXIX herein.At any time not less than sixty 60)days before the expiration of the current Franchise term,Franchisee may make a written request for an additional Franchise term of five 5)years.City shall grant such request to Franchisee,in accordance with then applicable laws,unless Franchisee is or has been in default of the terms of this Franchise beyond applicable notice and cure periods. Section I.2 This Franchise ordinance grants Franchisee the right,privilege,and authority to construct,operate,maintain,replace,relocate,repair,upgrade,remove,excavate,acquire, AGENDA ITEM #1. a) ORDINANCE NO.5936 2 and use the Small Cell Facilities,as defined in Section II.2,for its telecommunications network, in,under,on,across,over,through,along or below the public Rights of Way located in the City of Renton,as approved pursuant to the Renton Comprehensive Plan,the City’s design and construction standards,and the Renton Municipal Code collectively,the City’s Codes”),and permits issued pursuant to this Franchise.Public Rights of Way”means the surface of,and the space above and below,any public street,highway,freeway,bridge,alley,court,boulevard, sidewalk,lane,public way,drive,circle,pathways,spaces,utility easements unless there are relevant use,structure or other restrictions)or other public right of way which,under City ordinances or applicable laws,the City has authority to grant franchises,licenses,or leases for use thereof,or has regulatory authority there over and only to the extent such Rights of Way are opened and improved.Rights of Way for the purpose of this Franchise do not include: a)any other City property,such as the Renton Municipal Airport,City utility facilites and City parks even if there are access ways over such property; b)state highways;c)land dedicated for roads,streets,and highways not opened and not improved for motor vehicle use by the public; c)federally granted trust lands or forest board trust lands; d)lands owned or managed by the state parks and recreation commission;or e)federally granted railroad rights of way acquired under 43 U.S.C.Section 912 and related provisions of federal law that are not open for motor vehicle use. Section I.3 Franchisee intends to initially deploy Facilities in the locations indicated and using the designs described on attached Exhibit A the Initial Deployment Plan”);however,the Initial Deployment Plan attached hereto is for informational purposes only and in no way limits or restricts Franchisee’s ability to deploy additional Facilities in additional locations within the City under this Franchise,nor shall an amendment to this Franchise be required to allow such additional Facilities and locations.Inclusion of the Initial Deployment Plan in this Franchise is not a binding commitment to construct the Facilities described in Exhibit A,nor is it a substitute for AGENDA ITEM #1. a) ORDINANCE NO.5936 3 any City required approvals to construct Franchisee’s Facilities in the Rights of Way City Approvals”). Section I.4 If a direct conflict exists or arises such that the Franchisee or the City or both cannot comply with both the terms of this Franchise and the City’s Codes,the terms of this Franchise shall prevail.This provision shall be narrowly construed. Section II.Authority Limited to Occupation of Rights of Way for Services;Definition of Facilities. Section II.1 The authority granted herein is a limited authorization to occupy and use the Rights of Way throughout the City the Franchise Area”).The Franchisee is authorized to place its Facilities in the Rights of Way only consistent with this Franchise and the City’s Codes.Nothing contained herein shall be construed to grant or convey any right,title,or interest in the Rights of Way of the City to the Franchisee other than for the purpose of providing telecommunications services.Franchisee hereby warrants that it expects to provide the following services within the City:small cell network consisting of a collection of interrelated Small Cell Facilities designed to deliver personal wireless services and any other wireless communications services that Franchisee may lawfully provide the Services”). Section II.2 As used herein,Small Cell Facilities”or Facilities”means a personal wireless services facility that meets both of the following qualifications:i)each antenna is located inside an antenna enclosure of no more than three cubic feet in volume or,in the case of an antenna that has exposed elements,the antenna and all of its exposed elements could fit within an imaginary enclosure of no more than three cubic feet;and ii)primary equipment enclosures are no larger than twenty eight 28)cubic feet in volume.The following associated equipment may be located outside the primary equipment enclosure and if so located,are not included in the calculation of equipment volume but remain included in the definition of Small Cell Facilities):Electric meter,concealment,telecomm demarcation box,ground based enclosures, battery back up power systems,grounding equipment,power transfer switch,and cut off switch. Small Cell Facilities shall also include all necessary cables,transmitters,receivers,equipment boxes,backup power supplies,power transfer switches,electric meters,coaxial cables,wires, AGENDA ITEM #1. a) ORDINANCE NO.5936 4 conduits,ducts,pedestals,antennas,electronics,and other necessary or convenient appurtenances used for the specific wireless communications facility.Equipment enclosures with air conditioning,or other noise generating equipment are excluded from Small Cell Facilities.”Except as may be otherwise provided herein,Services do not include personal wireless services and associated facilities that fall outside of the definition of Small Cell Facilities i.e. macro facilities). Section II.3 This Franchise does not grant Franchisee the right to install and operate wires and facilities to provide wireline broadband transmission services,whether provided by a third party provider,Franchisee,or a corporate affiliate of Franchisee.Any entity that provides such wireline broadband transmission services must have an independent franchise to use the Rights of Way outside of this Franchise.Further,this Franchise does not grant the right to offer cable internet services or Cable Services as those terms are defined in 47 U.S.C.522(6)by wireline transmission. Section II.4 No right to install any facility,infrastructure,wires,lines,cables,or other equipment,on any City property other than a Right of Way,or upon private property without the owner’s consent,or upon any City,public or privately owned poles or conduits is granted herein.Nothing contained within this Franchise shall be construed to grant or convey any right, title,or interest in the Rights of Way of the City to Franchisee other than for the purpose of providing the Services,or to subordinate the primary use of the Right of Way as a public thoroughfare.If Franchisee desires to expand the Services provided within the City,it shall request a written amendment to this Franchise.If Franchisee desires to use City owned assets, including poles and structures within the Rights of Way,it shall enter into a separate lease,site specific agreement,or license agreement with the City. Section II.5 Franchisee shall have the right,without prior City approval,to offer or provide capacity or bandwidth to its customers consistent with this Franchise provided: AGENDA ITEM #1. a) ORDINANCE NO.5936 5 a)Franchisee at all times retains exclusive control over its telecommunications system, Facilities,and Services and remains responsible for constructing,installing,and maintaining its Facilities pursuant to the terms and conditions of this Franchise; b)Franchisee may not grant rights to any customer or lessee that are greater than any rights Franchisee has pursuant to this Franchise; c)Such customer or lessee shall not be construed to be a third party beneficiary under this Franchise;and d)No such customer or lessee may use the telecommunications system or Services for any purpose not authorized by this Franchise,nor to sell or offer for sale any service to the citizens of the City without all required business licenses,franchise or other form of state wide approval. Section III.Non Exclusive Franchise Grant.This Franchise is granted upon the express condition that it shall not in any manner prevent the City from granting other or further franchises in,along, over,through,under,below,or across any said Rights of Way.This Franchise shall in no way prevent or prohibit the City from using any of said roads,streets,or other public properties or affect its jurisdiction over them or any part of them,and the City shall retain power to make all necessary changes,relocations,repairs,maintenance,establishment,improvement,dedication of same as the City may deem fit,including the dedication,establishment,maintenance,and improvement of all new Rights of Way,thoroughfares and other public properties of every type and description. Section IV.Location of Telecommunications Network Facilities. Section IV.1 Franchisee may locate its Facilities anywhere within the Franchise Area consistent with this Franchise and the City’s Codes.Franchisee shall not be required to amend this Franchise to construct or acquire Facilities within the Franchise Area,provided that Franchisee does not expand its Services beyond those described in Section II. AGENDA ITEM #1. a) ORDINANCE NO.5936 6 Section IV.2 To the extent that any Facilities within the Franchise Area are located within part of the state highway system State Highways”)governed by the provisions of Chapter 47.24 RCW and applicable Washington State Department of Transportation WSDOT)regulations, Franchisee shall comply fully with said requirements in addition to local ordinances and other applicable regulations.Without limitation of the foregoing,Franchisee specifically agrees that: a)any pavement trenching and restoration performed by Franchisee within State Highways shall meet or exceed applicable WSDOT requirements; b)any portion of a State Highway damaged or injured by Franchisee shall be restored, repaired and/or replaced by Franchisee to a condition that meets or exceeds applicable WSDOT requirements;and c)without prejudice to any right or privilege of the City,WSDOT is authorized to enforce in an action brought in the name of the State of Washington any condition of this Franchise with respect to any portion of a State Highway. Section V.Relocation of Telecommunications Network Facilities. Section V.1 Relocation Requirement.The City may require Franchisee,and Franchisee agrees and covenants to protect,support,temporarily disconnect,relocate,or remove its Facilities within the Right of Way when reasonably necessary for construction,alteration,repair, or improvement of the Right of Way for purposes of and for public welfare,health,or safety or traffic conditions,dedications of new Rights of Way and the establishment and improvement of existing Rights of Way,street vacations,freeway construction,change or establishment of street grade,or the construction of any public improvement or structure by any governmental agency acting in a governmental capacity or as otherwise necessary for the operations of the City or other governmental entity,provided that Franchisee shall in all such cases have the privilege to temporarily bypass in the authorized portion of the same Rights of Way upon approval by the City,which approval shall not unreasonably be withheld or delayed,any Facilities required to be temporarily disconnected or removed.For the avoidance of doubt,such projects shall include AGENDA ITEM #1. a) ORDINANCE NO.5936 7 any Right of Way improvement project or City utility improvement project,even if the project entails,in part,related work funded and/or performed by or for a third party,provided that such work is performed for the public benefit and at the request of or contracted by the City,but shall not include,without limitation,any other improvement or repairs undertaken by or for the benefit of third party private entities.Collectively all such projects described in this Section V.1 shall be considered a Public Project”.Except as otherwise provided by law or as otherwise agreed to in this Franchise,the costs and expenses associated with relocations or disconnections ordered pursuant to this Section V.1 shall be borne by Franchisee. Section V.2 Relocation Third Party Structures.If the request for relocation from the City originates due to a Public Project,in which structures or poles are either replaced or removed,then Franchisee shall relocate or remove its Facilities as required by the City,and at no cost to the City,subject to the procedure in Section V.5.Franchisee acknowledges and agrees, that the placement of Small Cell Facilities on third party owned structures does not convey an ownership interest in such structures.Franchisee acknowledges and agrees,that to the extent Franchisee’s Small Cell Facilities are on poles owned by third parties,the City shall not be responsible for any costs associated with requests for relocation which the City makes solely for aesthetic purposes and with requests arising out of a Public Project. Section V.3 Relocation Franchisee Owned Structures.The cost of relocation of any Franchisee owned poles or structures shall be determined in accordance with the requirements of RCW 35.99.060(3)(b),provided,however,that the Franchisee may opt to pay for the cost of relocating its Small Cell Facilities in order to provide consideration for the City’s approval to site a Small Cell Facility on Franchisee owned structures or poles in a portion of the Right of Way designated or proposed for a Public Project.For this Section V.3,designation of the Right of Way for a Public Project shall be undertaken in the City’s Comprehensive Plan in accordance with the requirements of Ch.36.70A RCW.The Comprehensive Plan includes,but is not limited to the Transportation element or Transportation Improvement Plan TIP),Capital Facilities element, Utilities element,or Utility Capital Improvement Program CIP)and any other element authorized by RCW 36.70A.070 and RCW 36.70A.080.The parties acknowledge that this provision is AGENDA ITEM #1. a) ORDINANCE NO.5936 8 mutually beneficial to the parties,as the City may otherwise deny the placement of the Small Cell Facility at a particular site because of the cost impact of such relocation and the conflict with the City’s Comprehensive Plan. Section V.4 Locate.Upon request of the City,or a third party performing work in the Right of Way,and in order to facilitate the design of City street and Right of Way improvements or City utility improvements,Franchisee agrees,at its sole cost and expense,to locate,and if reasonably determined necessary by the City,to excavate and expose its Facilities for inspection so that the Facilities’location may be taken into account in the improvement design.The decision as to whether any Facilities need to be relocated in order to accommodate the City’s Public Projects shall be made by the City upon review of the location and construction of Franchisee’s Facilities.The City shall provide Franchisee at least thirty 30)days’written notice prior to any excavation or exposure of Facilities. Section V.5 Notice and Relocation Process.If the City determines that a Public Project necessitates the relocation of Franchisee’s existing Facilities,the City shall: a)At least ninety 90)days prior to commencing construction of the Public Project, provide Franchisee with written notice requiring such relocation;provided,however,that in the event of an emergency situation,defined for purposes of this Franchise as a condition posing an imminent threat to property,life,health,or safety of any person or entity,the City shall give Franchisee written notice as soon as practicable;and b)At least ninety 90)days prior to commencing the Public Project,provide Franchisee with copies of pertinent portions of the plans and specifications for the Public Project and cooperate with Franchisee in its identification of a proposed location for Franchisee’s Facilities so that Franchisee may relocate its Facilities in other Rights of Way in order to accommodate such Public Project;and c)After receipt of such notice and such plans and specifications,Franchisee shall complete relocation of its Facilities at least ten 10)days prior to commencement of the AGENDA ITEM #1. a) ORDINANCE NO.5936 9 construction of the Public Project at no charge or expense to the City,except as otherwise provided by law.Relocation shall be accomplished in such a manner as to accommodate the Public Project. Section V.6 Alternative Designs.Franchisee may,within thirty 30)days after receipt of written notice requesting a relocation of its Facilities,submit to the City written alternatives to such relocation.Such alternatives must be submitted to the City at least sixty 60)days prior to commencement of the project.The City shall evaluate the alternatives and advise Franchisee in writing within ten 10)days after receipt of Franchisee’s alternative if one or more of the alternatives are suitable to accommodate the work that would otherwise necessitate relocation of the Facilities.If so requested by the City,Franchisee shall submit at its sole cost and expense additional information to assist the City in making such evaluation.The City shall give each alternative proposed by Franchisee full and fair consideration.In the event the City ultimately determines that there is no other reasonable or feasible alternative,Franchisee shall relocate its Facilities as otherwise provided in this Section V. Section V.7 Alternative Arrangements.The provisions of this Section V shall in no manner preclude or restrict Franchisee from making any arrangements it may deem appropriate when responding to a request for relocation of its Facilities by any person or entity other than the City, where the facilities to be constructed by said person or entity are not or will not become City owned,operated,or maintained facilities,provided that such arrangements do not unduly delay a City construction project. Section V.8 Contractor Delay Claims.If Franchisee breaches its obligations under chapter 19.122 RCW to properly locate its Facilities or breaches its obligations under this Section with respect to relocating its Facilities,and to the extent such breach causes a delay in the work being undertaken by the City’s third party contractor(s)that results in a claim by the third party contractor(s)for actual and documented costs,expenses and/or damages that are directly caused by such delay and are legally required to be paid by the City each,a Contractor Delay Claim”),the City may at its sole option: AGENDA ITEM #1. a) ORDINANCE NO.5936 10 a)tender the Contractor Delay Claim to Franchisee for defense and indemnification in accordance with Section V.9 and Section XXXVIII;or b)require that Franchisee reimburse the City for any such costs,expenses,and/or damages that are legally required to be paid by the City to its third party contractor(s)as a direct result of the Contractor Delay Claim;provided that,if the City requires reimbursement by Franchisee under Section V.8(b),the City shall first give Franchisee written notice of the Contractor Delay Claim and give Franchisee the opportunity to work with the third party contractor(s)to resolve the Contractor Delay Claim for a period of not less than sixty 60)days prior to the City's payment of the Contractor Delay Claim. Section V.9 Relocate Indemnification.Franchisee will indemnify,hold harmless,and pay the costs of defending the City,in accordance with the indemnification provisions of Section XXXVIII,against any and all claims,suits,actions,damages,or liabilities for delays on City construction projects caused by or arising out of the failure of Franchisee to remove or relocate its Facilities in a timely manner;provided,that Franchisee shall not be responsible for damages due to delays caused by circumstances beyond the control of Franchisee or the sole negligence, willful misconduct,or unreasonable delay of the City or any unrelated third party. Section V.10 Moving a Building.Whenever any person shall have obtained permission from the City to use any Right of Way for the purpose of moving any building,Franchisee,upon thirty 30)days’written notice from the City,shall raise,remove,or relocate to another part of the Right of Way,at the expense of the person desiring to move the building,any of Franchisee’s Facilities that may obstruct the removal of such building. Section V.11 City’s Costs.If Franchisee fails,neglects,or refuses to remove or relocate its Facilities as directed by the City following the procedures outlined in 5.1 through 5.6 the City may perform such work or cause it to be done,and the City’s actual and documented costs shall be paid by Franchisee pursuant to Section XIV.2 and XIV.3. AGENDA ITEM #1. a) ORDINANCE NO.5936 11 Section V.12 Survival.The provisions of this Section V shall survive the expiration or termination of this Franchise during such time as Franchisee continues to have Facilities in the Rights of Way. Section VI.Undergrounding of Facilities. Section VI.1 Franchisee hereby acknowledges and agrees that whenever the City requires the undergrounding of the aerial utilities in any area of the City,and when such undergrounding includes the removal of structures on which the Facilities are placed e.g.electric utility poles) the City may require the Franchisee to remove and relocate its Facilities.Notwithstanding the foregoing,placing Facilities underground is not intended to preclude the use of small cell antennas,ground mounted appurtenances,or other Facilities that must remain above ground to function properly.Facilities that may be reasonably altered to function properly below ground are not Facilities that may remain above ground,unless such alteration would create a hazard to people or property. Section VI.2 Franchisee shall not remove any underground Facilities that require trenching or other opening of the Rights of Way,except as provided in this Section VI.2. Franchisee may remove any underground Facilities from the Right of Way that have been installed in such a manner that it can be removed without trenching or other opening of the Right of Way,or if otherwise permitted by the City.When the City determines,in the City’s sole discretion,that Franchisee’s underground Facilities must be removed in order to eliminate or prevent a hazardous condition,Franchisee shall remove such Facilities at Franchisee’s sole cost and expense.Franchisee must apply and receive a permit,pursuant to Section VIII.2,prior to any such removal of underground Facilities from the Right of Way and must provide as built plans and maps pursuant to Section XVII.1. Section VI.3 The provisions of this Section VI shall survive the expiration,revocation,or termination of this Franchise.Nothing in this Section VI shall be construed as requiring the City to pay any costs of undergrounding any of the Franchisee’s Facilities. Section VII.Maps and Records. AGENDA ITEM #1. a) ORDINANCE NO.5936 12 Section VII.1 Following the initial construction and installation of Facilities,Franchisee shall provide the City with accurate copies of as built plans and maps prepared by Franchisee’s design and installation contractors.These plans and maps shall be provided at no cost to the City,and shall include hard copies and digital files in Autocad or other industry standard readable formats that are acceptable to the City and delivered electronically.Further,Franchisee shall provide such maps within thirty 30)days following a request from the City.Franchisee shall warrant the accuracy of all plans,maps and as builts provided to the City. Section VII.2 Within thirty 30)days of a written request from the Community and Economic Development Administrator or designee,Franchisee shall furnish the City with information sufficient to demonstrate:1)that the Franchisee has complied with all applicable requirements of this Franchise;and 2)that all utility taxes due the City in connection with the Franchisee’s services and Facilities provided by the Franchisee have been properly collected and paid by the Franchisee. Section VII.3 All books,records,maps,and other documents maintained by Franchisee with respect to its Facilities within the Rights of Way shall be made available for inspection by the City at reasonable times and intervals;provided,however,that nothing in this Section VII.3 shall be construed to require Franchisee to violate state or federal law regarding customer privacy,nor shall this Section VII.3 be construed to require Franchisee to disclose proprietary or confidential information without adequate safeguards for its confidential or proprietary nature. Section VII.4 Franchisee shall not be required to disclose information that it reasonably deems to be proprietary or confidential in nature;provided,however,Franchisee shall disclose such information that is required under applicable law to comply with a utility tax audit. Franchisee shall be responsible for clearly and conspicuously identifying the work as confidential or proprietary,and shall provide a brief written explanation as to why such information is confidential and how it may be treated as such under State or federal law.In the event that the City receives a public records request under Chapter 42.56 RCW or similar law for the disclosure of information Franchisee has designated as confidential,trade secret,or proprietary,the City AGENDA ITEM #1. a) ORDINANCE NO.5936 13 shall promptly provide written notice of such disclosure so that Franchisee can take appropriate steps to protect its interests. Section VII.5 Nothing in Section VII.3 or Section VII.4 prohibits the City from complying with Chapter 42.56 RCW or any other applicable law or court order requiring the release of public records,and the City shall not be liable to Franchisee for compliance with any law or court order requiring the release of public records.The City shall comply with any injunction or court order obtained by Franchisee that prohibits the disclosure of any such confidential records;however, in the event a higher court overturns such injunction or court order and such higher court action is or has become final and non appealable,Franchisee shall reimburse the City for any fines or penalties imposed for failure to disclose such records as required hereunder within sixty 60)days of a request from the City. Section VII.6 On an annual basis,upon thirty 30)days prior written notice,the City shall have the right to conduct an independent audit of Franchisee’s records reasonably related to the administration or enforcement of this Franchise,in accordance with GAAP. Section VIII.Work in the Rights of Way Section VIII.1 During any period of relocation,construction or maintenance,all work performed by Franchisee or its contractors shall be accomplished in a safe and workmanlike manner,so to minimize interference with the free passage of traffic and the free use of adjoining property,whether public or private.Franchisee shall at all times post and maintain proper barricades,flags,flaggers,lights,flares and other traffic control measures as required for the safety of all members of the general public and comply with all applicable safety regulations during such period of construction as required by the ordinances of the City or the laws of the State of Washington,including RCW 39.04.180 for the construction of trench safety systems.The provisions of this Section VIII shall survive the expiration or termination of this Franchise and during such time as Franchisee continues to have Facilities in the Rights of Way. Section VIII.2 Whenever Franchisee shall commence work in any Rights of Way for the purpose of excavation,installation,construction,repair,maintenance,or relocation of its AGENDA ITEM #1. a) ORDINANCE NO.5936 14 Facilities,it shall apply to the City for a right of way use permit to do so and,in addition,shall give the City at least twenty 20)working days prior notice except in the case of an emergency) of its intent to commence work in the Rights of Way.During the progress of the work,the Franchisee shall not unnecessarily obstruct the passage or proper use of the Rights of Way,and all work by the Franchisee in the area shall be performed in accordance with applicable City standards and specifications and warranted for a period of two 2)years.In no case shall any work commence within any Rights of Way without a permit,except as otherwise provided in this Franchise. Section VIII.3 The City reserves the right to limit or exclude Franchisee’s access to a specific route,Right of Way or other location when,in the reasonable judgment of the Community and Economic Development Administrator or designee there is inadequate space including but not limited to compliance with ADA clearance requirements and maintaining a clear and safe passage through the Rights of Way),a pavement cutting moratorium,unnecessary damage to public property,public expense,inconvenience,interference with City utilities,or for any other reason determined by the Community and Economic Development Administrator or designee. Section VIII.4 If the Franchisee shall at any time plan to make excavations in any area covered by this Franchise,the Franchisee shall afford the City,upon receipt of a written request to do so,an opportunity to share such excavation,PROVIDED THAT: a)Such joint use shall not unreasonably delay the work of the Franchisee causing the excavation to be made; b)Such joint use shall be arranged and accomplished on terms and conditions satisfactory to both parties;and c)Franchisee may deny such request for safety reasons. Section VIII.5 Except for emergency situations,as a courtesy,Franchisee shall give reasonable advance written e.g.,door hanger or direct mail)notice of intended construction to AGENDA ITEM #1. a) ORDINANCE NO.5936 15 residents within one hundred feet 100’)of the affected area.Such notice shall contain the Franchisee’s contact number,estimated dates,and nature and location of the work to be performed.Any disturbance of landscaping,fencing,or other improvements on private property caused by Franchisee’s work shall,at the sole expense of Franchisee,be promptly repaired and restored to the reasonable satisfaction of the property owner/resident.Notwithstanding the above,nothing herein shall give Franchisee the right to enter onto private property without the permission of such private property owner,or as otherwise authorized by applicable law. Section VIII.6 Franchisee may trim trees upon and overhanging on public ways,streets, alleys,sidewalks,and other public places of the City so as to prevent the branches of such trees from coming in contact with Franchisee’s Facilities.The right to trim trees in this Section VIII.6 shall only apply to the extent necessary to protect above ground Facilities.Franchisee shall ensure that its tree trimming activities protect the appearance,integrity,and health of the trees to the extent reasonably possible.Franchisee shall be responsible for all debris removal from such activities.All trimming,except in emergency situations,is to be done after the explicit prior written notification and approval of the City and at the expense of Franchisee.Franchisee may contract for such services;however,any firm or individual so retained must first receive City approval prior to commencing such trimming,which approval shall not be unreasonably withheld,conditioned,or delayed.Nothing herein grants Franchisee any authority to act on behalf of the City,to enter upon any private property,or to trim any tree or natural growth not owned by the City.Franchisee shall be solely responsible and liable for any damage to any third parties’trees or natural growth caused by Franchisee’s actions.Franchisee shall indemnify, defend and hold harmless the City from third party claims of any nature arising out of any act or negligence of Franchisee with regard to tree and/or natural growth trimming,damage,and/or removal.Franchisee shall reasonably compensate the City or the property owner for any damage caused by trimming,damage,or removal by Franchisee.Except in an emergency situation,any tree trimming that involves the removal of branches that are six inches or greater in diameter must be performed under the direction of an arborist certified by the International Society of Arboriculture,unless otherwise approved by the Community and Economic Development Administrator or designee. AGENDA ITEM #1. a) ORDINANCE NO.5936 16 Section VIII.7 Franchisee shall meet with the City and other franchise holders and users of the Rights of Way upon written notice as determined by the City,to schedule and coordinate construction in the Rights of Way.All construction locations,activities,and schedules shall be coordinated,as ordered by the City to minimize public inconvenience,disruption or damages and conflicts with City projects. Section VIII.8 Franchisee shall inform the City with at least thirty 30)days’advance written notice that it is constructing,relocating,or placing ducts or conduits in the Rights of Way and provide the City with an opportunity to request that Franchisee provide the City with additional duct or conduit and related structures necessary to access the conduit pursuant to RCW 35.99.070. Section IX.One Call Locator Service.Prior to doing any work in the Rights of Way,the Franchisee shall,follow established procedures,including contacting the Utility Notification Center in Washington and comply with all applicable State statutes regarding the One Call Locator Service pursuant to Chapter 19.122 RCW.Further,upon request,by the City or a third party,Franchisee shall locate its Facilities consistent with the requirements of Chapter 19.122 RCW.The City shall not be liable for any damages to Franchisee’s Facilities or for interruptions in service to Franchisee’s customers that are a direct result of Franchisee’s failure to locate its Facilities within the prescribed time limits and guidelines established by the One Call Locator Service regardless of whether the City issued a permit. Section X.Safety Requirements. Section X.1 Franchisee shall,at all times,employ professional care and shall install and maintain and use industry standard methods for preventing failures and accidents that are likely to cause damage,injuries,or nuisances to the public.All structures and all lines,equipment,and connections in,over,under,and upon the Rights of Ways,wherever situated or located,shall at all times be kept and maintained in a safe condition.Franchisee shall comply with all federal, State,and City safety requirements,rules,regulations,laws,and practices,and employ all necessary devices as required by applicable law during the construction,operation,maintenance, AGENDA ITEM #1. a) ORDINANCE NO.5936 17 upgrade,repair,or removal of its Facilities.Additionally,Franchisee shall keep its Facilities free of debris and anything of a dangerous,noxious or offensive nature or which would create hazard or undue vibration,heat,noise or any interference with City services.By way of illustration and not limitation,Franchisee shall also comply with the applicable provisions of the National Electric Code,National Electrical Safety Code,FCC regulations,and Occupational Safety and Health Administration OSHA)Standards.Upon reasonable notice to Franchisee,the City reserves the general right to inspect the Facilities to evaluate if they are constructed and maintained in a safe condition. Section X.2 If an unsafe condition or a violation of Section X.1 is found to exist,and becomes known to the City,the City agrees to give Franchisee written notice of such condition and afford Franchisee a reasonable opportunity to repair the same.If Franchisee fails to start to make the necessary repairs and alterations within a reasonable time frame specified in such notice and pursue such cure to completion),but in no event less than forty five 45)days,then the City may make such repairs or contract for them to be made.All actual and documented costs,including administrative costs,incurred by the City in repairing any unsafe conditions shall be borne by Franchisee and reimbursed to the City pursuant to Section XIV.1 to XIV.4. Section X.3 Additional safety standards include: a)Franchisee shall endeavor to maintain all Facilities in an orderly manner,including,but not limited to,the placement of any cables connecting equipment in an orderly manner. b)All installations of equipment,lines,and ancillary facilities shall be installed in accordance with industry standard engineering practices and shall comply with all federal,State,and local regulations,ordinances,and laws. c)Any opening or obstruction in the Rights of Way or other public places made by Franchisee in the course of its operations shall be protected by Franchisee at all times by the placement of adequate barriers,fences,steel plates,or boarding,the bounds of which,during periods of dusk and darkness,shall be clearly marked and visible. AGENDA ITEM #1. a) ORDINANCE NO.5936 18 Section X.4 Stop Work Order.On notice from the City that any work is being performed contrary to the provisions of this Franchise,or in an unsafe or dangerous manner as determined by the City,or in violation of the terms of any applicable permit,laws,regulations,ordinances,or standards,the work may immediately be stopped by the City.The stop work order shall: a)Be in writing; b)Be given to the person doing the work or posted on the work site; c)Be sent to Franchisee by overnight delivery; d)Indicate the nature of the alleged violation or unsafe condition;and e)Establish conditions under which work may be resumed. Section XI.Work of Contractors and Subcontractors.Franchisee’s contractors and subcontractors shall be licensed and bonded in accordance with State law and the City’s ordinances,regulations,and requirements.Work by contractors and subcontractors are subject to the same restrictions,limitations,and conditions as if the work were performed by Franchisee. Franchisee 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 Franchisee and shall ensure that all such work is performed in compliance with this Franchise and applicable law. Section XII.Restoration after Construction. Section XII.1 Franchisee shall,after installation,construction,relocation,maintenance, or repair of its Facilities,or after abandonment approved pursuant to Error!Reference source not found.7,promptly remove any obstructions from the Rights of Way and restore the surface of the Rights of Way to at least the same condition the Rights of Way were in immediately prior to any such installation,construction,relocation,maintenance or repair,reasonable wear and tear excepted,and provided Franchisee shall not be responsible for any changes to the Rights of Way not caused by Franchisee or anyone doing work for Franchisee.The Community and Economic Development Administrator or designee shall have final approval of the condition of such Rights of Way after restoration.All concrete encased survey monuments that have been AGENDA ITEM #1. a) ORDINANCE NO.5936 19 disturbed or displaced by such work shall be restored pursuant to federal,state such as Chapter 332 120 WAC),and local standards and specifications. Section XII.2 Franchisee agrees to promptly complete all restoration work and to promptly repair any damage caused by work to the Franchise Area or other affected area at its sole cost and expense and according to the time and terms specified in the construction permit issued by the City.All work by Franchisee pursuant to this Franchise shall be performed in accordance with applicable City standards and warranted for a period of two 2)years and for undiscovered defects as is standard and customary for this type of work. Section XII.3 If conditions e.g.weather)make the complete restoration required under this Section XII impracticable,Franchisee shall temporarily restore the affected Right of Way or property.Such temporary restoration shall be at Franchisee’s sole cost and expense.Franchisee shall promptly undertake and complete the required permanent restoration when conditions no longer make such permanent restoration impracticable. Section XII.4 In the event Franchisee does not repair or restore a Right of Way as required hereunder,within thirty 30)days after notice to Franchisee,the City may repair the damage and shall be reimbursed its actual cost within sixty 60)days of submitting an invoice to Franchisee in accordance with the provisions of Section XIV.2 and Section XIV.3.In addition,and pursuant to Section XIV.2 and Section XIV.3,the City may bill Franchisee for expenses associated with the inspection of such restoration work.The failure by Franchisee to complete such repairs shall be considered a breach of this Franchise and is subject to remedies by the City including the imposition of damages consistent with Section XXI.2. Section XII.5 The provisions of this Section XII shall survive the expiration or termination of this Franchise so long as Franchisee continues to have Facilities in the Rights of Way and has not completed all restoration to the City’s standards. Section XIII.Emergency Work/Dangerous Conditions. AGENDA ITEM #1. a) ORDINANCE NO.5936 20 Section XIII.1 In the event of any emergency in which any of Franchisee’s Facilities located in the Rights of Way breaks,falls,becomes damaged,or if Franchisee’s Facilities is otherwise in such a condition as to immediately endanger the property,life,health or safety of any person, entity or the City,Franchisee shall immediately take the proper emergency measures to repair its Facilities,to cure or remedy the dangerous conditions for the protection of property,life, health or safety of any person,entity or the City without first applying for and obtaining a permit as required by this Franchise.However,this shall not relieve Franchisee from the requirement of obtaining any permits necessary for this purpose,and Franchisee shall apply for all such permits not later than the next succeeding day during which the Renton City Hall is open for business.The City retains the right and privilege to cut,move or remove any Facilities located within the Rights of Way of the City,as the City may determine to be necessary,appropriate or useful in response to any public health or safety emergency. Section XIII.2 The City shall not be liable for any damage to or loss of Facilities within the Rights of Way as a result of or in connection with any public works,public improvements, construction,grading,excavation,filling,or work of any kind in the Rights of Way by or on behalf of the City,except to the extent caused by the sole negligence or willful misconduct of the City, its employees,contractors,or agents.The City shall further not be liable to Franchisee for any direct,indirect,or any other such damages suffered by any person or entity of any type as a direct or indirect result of the City’s actions under this Section XIII except to the extent caused by the sole negligence or willful misconduct of the City,its employees,contractors,or agents. Section XIII.3 Whenever the construction,installation or excavation of Facilities authorized by this Franchise has caused or contributed to a condition that appears to substantially impair the lateral support of the adjoining street or public place,or endangers the public,an adjoining public place,street,electrical or telecommunications utilities,City utilities, or City property,the Community and Economic Development Administrator or designee,may direct Franchisee,at Franchisee’s own expense,to take reasonable action to protect the public, adjacent public places,City property or street utilities,and such action may include compliance within a prescribed time.In the event that Franchisee fails or refuses to promptly take the actions AGENDA ITEM #1. a) ORDINANCE NO.5936 21 directed by the City,or fails to fully comply with such directions,or if emergency conditions exist which require immediate action,before the City can timely contact Franchisee to request Franchisee effect the immediate repair,the City may access the Facilities and take such reasonable actions as are necessary to protect the public,the adjacent streets,City utilities,or street,electrical,or telecommunications utilities,or to maintain the lateral support thereof,or reasonable actions regarded as necessary safety precautions,and Franchisee shall be liable to the City for the actual and documented costs thereof. Section XIV.Recovery of Costs,Taxes and Fees. Section XIV.1 Franchisee shall pay a fee for the actual administrative expenses incurred by the City that are directly related to receiving and approving this Franchise pursuant to RCW 35.21.860,including the costs associated with the City’s legal costs incurred in drafting and processing this Franchise.No permits shall be issued for the installation of authorized Facilities until such time as the City has received payment of this fee.Franchisee shall further be subject to all permit fees associated with activities undertaken through the authority granted in this Franchise or under the laws of the City.Where the City incurs costs and expenses for review, inspection,or supervision of activities,including but not limited to reasonable fees associated with attorneys,consultants,City Staff and City Attorney time,undertaken through the authority granted in this Franchise or any ordinances relating to the subject for which a permit fee is not established,Franchisee shall pay such costs and expenses directly to the City in accordance with the provisions of Section XIV.3. Section XIV.2 Franchisee shall promptly reimburse the City in accordance with the provisions of Section XIV.3 for any and all costs the City reasonably incurs in response to any emergency situation involving Franchisee’s Facilities,to the extent said emergency is not the fault of the City.The City agrees to simultaneously seek reimbursement from any franchisee or permit holder who caused or contributed to the emergency situation. Section XIV.3 Franchisee shall reimburse the City within sixty 60)days of submittal by the City of an itemized billing for reasonably incurred costs,itemized by project,for Franchisee’s AGENDA ITEM #1. a) ORDINANCE NO.5936 22 proportionate share of all actual,identified expenses incurred by the City in planning, constructing,installing,repairing,altering,or maintaining any City facility as the result of the presence of Franchisee’s Facilities in the Rights of Way.Such costs and expenses shall include but not be limited to Franchisee’s proportionate cost of City personnel assigned to oversee or engage in any work in the Rights of Way as the result of the presence of Franchisee’s Facilities in the Rights of Way.Such costs and expenses shall also include Franchisee’s proportionate share of any time spent reviewing construction plans in order to either accomplish the relocation of Franchisee’s Facilities or the routing or rerouting of any utilities so as not to interfere with Franchisee’s Facilities. Section XIV.4 The time of City employees shall be charged at their respective rate of salary,including overtime if applicable,plus benefits and reasonable overhead.Any other costs will be billed proportionately on an actual cost basis.All billings will be itemized so as to specifically identify the costs and expenses for each project for which the City claims reimbursement.A charge for the actual costs incurred in preparing the billing may also be included in said billing.At the City’s option,the billing may be on an annual basis,but the City shall provide the Franchisee with the City’s itemization of costs,in writing,at the conclusion of each project for information purposes.The City does not waive any right to charge an annual fee by separate permit or agreement for every small cell that is located on a City asset.Refer to the City’s Fee Schedule for the applicable fee.) Section XIV.5 Franchisee hereby warrants that its operations as authorized under this Franchise are those of a telephone business as defined in RCW 82.16.010,or service provider as defined in RCW 35.21.860.As a result,the City will not impose a franchise fee under the terms of this Franchise,other than as described herein.The City hereby reserves its right to impose a franchise fee on Franchisee if Franchisee’s operations as authorized by this Franchise change such that the statutory prohibitions of RCW 35.21.860 no longer apply,or if statutory prohibitions on the imposition of such fees are removed.In either instance,the City also reserves its right to require that Franchisee obtain a separate Franchise for its change in use.Nothing contained AGENDA ITEM #1. a) ORDINANCE NO.5936 23 herein shall preclude Franchisee from challenging any such new fee or separate agreement under applicable federal,State,or local laws. Section XIV.6 Franchisee acknowledges that certain of its operations within the City constitute a telecommunication business subject to the utility tax imposed pursuant to the Renton Municipal Code Chapter 5 11.Franchisee stipulates and agrees that certain of its business activities are subject to taxation as a telecommunication business and that Franchisee shall pay to the City the rate applicable to such taxable services under Renton Municipal Code Chapter 5 19,and consistent with state and federal law.The parties agree that if there is a dispute regarding tax payments,the process set forth under the Renton Municipal Code shall govern such dispute.The City may not enforce remedies provided for hereunder,or commence a forfeiture or revocation process permitted hereunder until all remedies afforded the City under the Renton Municipal Code or other judicial action have been exhausted,and only then if Franchisee does not comply with any such resolution.The parties agree however,that nothing in this Franchise shall limit the City's power of taxation as may exist now or as later imposed by the City.This provision does not limit the City's power to amend the Renton Municipal Code as may be permitted by law. Section XV.Permitting and Aesthetics. Section XV.1 Authority Section XV.1.1 City Retains Approval Authority.The City shall have the authority at all times to control by appropriately exercised police powers through ordinance or regulation,consistent with 47 U.S.C.253,47 U.S.C.332(c)(7)and the laws of the State of Washington,the location,elevation,manner of construction,and maintenance of any Small Cell Facilities by Franchisee,and Franchisee shall promptly conform with all such requirements,unless compliance would cause Franchisee to violate other requirements of law.This Franchise does not prohibit the City from exercising its rights under federal, state or local law to deny or give conditional approval to an application for a permit to construct any individual Small Cell Facility. AGENDA ITEM #1. a) ORDINANCE NO.5936 24 Section XV.1.2 Unauthorized Facilities.Any Small Cell Facilities installations in the Right of Way that were not authorized under this Franchise or other required City Approval Unauthorized Facilities”)will be subject to the payment of an Unauthorized Facilities charge by Franchisee.City shall provide written notice to Franchisee of any Unauthorized Facilities identified by City staff and Franchisee shall have thirty 30)days thereafter in which to establish that this site was authorized or obtain the applicable permit.Or longer than thirty 30)days if necessary upon the City’s consent so long as Franchisee can demonstrate that it has taken active steps to establish the authorization or apply for the permit within such thirty 30)day period.Failure to establish that the site is authorized will result in the imposition of an Unauthorized Facilities charge according to the City of Renton Fee Schedule starting on the thirty first 31st)day or the first day after the expiration of any extended period granted by the City.Franchisee may submit an application to the City under this Franchise for approval of the Unauthorized Facilities.If the application for the Unauthorized Facilities is not approved,Franchisee shall remove the Unauthorized Facilities from the Right of Way within thirty 30)days after the expiration of all appeal periods for such denial.The City shall not refund any Unauthorized Facilities charges,unless Franchisee is successful in an appeal.This Franchise remedy is in addition to any other remedy available to the City at law or equity. Section XV.2 Permits Section XV.2.1 Small Cell Permit.Franchisee shall apply for,and is required to obtain a City small cell permit Small Cell Permit”)prior to the construction and installation of each of its Small Cell Facilities in the Rights of Way.In addition to applicable requirements established by the City’s Codes for the Small Cell Permit,an application for the deployment of Small Cell Facilities shall include: a)A site plan that includes the property lines,adjacent Rights of Way,private roads,existing utilities,and existing and proposed structures.The City may require the site plan to include all poles within 100 feet,if necessary.Maps shall be drawn at 1:20 scale; AGENDA ITEM #1. a) ORDINANCE NO.5936 25 b)Scaled elevations depicting the design,size,and locations of proposed Small Cell Facilities.The design of the proposed Small Cell Facilities shall comply with the requirements of Section XV.3 Design); c)Photo simulations of the Small Cell Facility site showing current and proposed conditions for each proposed location; d)A tree plan,shown either on the site plan required in this Section XV.2.1 or on a separate tree plan,but only for those Small Cell Facilities where Franchisee will prune any trees.The tree plan shall show the location,diameter,species of all significant trees defined as conifers greater than 6 feet tall or deciduous trees greater than 6 inches in diameter at 4 feet above the ground),clearly designate all eagle perch/nest trees,and draw an X through trees proposed to be removed or pruned.No trees may be pruned without the City’s approval provided in the Small Cell Permit,and shall be consistent with the requirements of Section VIII.6 of this Franchise;and, e)Site Specific Traffic Control Plan prepared in accordance with the State of Washington Manual on Uniform Traffic Control Devices MUTCD). Section XV.2.2 City Approvals.The granting of this Franchise is not a substitute for any City Approvals.The parties agree that City Approvals except right of way use permits as described in Section VIII.2)are not considered use permits as that term is defined in RCW 35.99.010.These City Approvals do not grant general authorization to enter and utilize the Rights of Way but rather grant Franchisee permission to build its specific Small Cell Facilities.Therefore,City Approvals are not subject to the thirty 30)day issuance requirement described in RCW 35.99.030.The parties recognize that this provision is specifically negotiated as consideration for designating the entire City as the Franchise Area.Such City Approvals shall be issued consistent with the City’s Codes,state and federal laws governing wireless communication facility siting and shall be in addition to any permits required under Section VIII.2.This Section does not affect the thirty 30)day AGENDA ITEM #1. a) ORDINANCE NO.5936 26 issuance requirement described in RCW 35.99.030 required for use permits such as right of way use permits and traffic control permits. Section XV.2.3 RF Exposure Compliance.Franchisee’s Small Cell Facilities must comply with all standards and regulations of the Federal Communications Commission and any other state or federal government agency with the authority to regulate exposure to radio frequency RF)emissions or Electromagnetic Fields EMFs”)on or off any poles or structures in the right of way,including all applicable FCC standards,whether such RF or EMF presence or exposure results from the Small Cell Facility along or from the cumulative effect of the Small Cell Facility added to all other sources on or near the specific pole or structure.Franchisee,or its representative,must provide to the City a copy of the report the Emissions Report”)from a duly qualified engineer analyzing whether RF and EMF emissions at the proposed Small Cell Facility locations would comply with FCC standards.And,at the City’s written request,must conduct at its own cost and expense)on site post installation RF emissions testing in accordance with applicable rules,and certify actual compliance with applicable RF emissions limits for general population/uncontrolled RF exposure,and provide a copy of such post installation compliance report to the City. Section XV.3 Design Section XV.3.1 City’s Standard Detail.This Franchise adopts the City’s Standard Detail 117 as it now exists or is hereafter amended,supplemented,and/or renumbered collectively,hereinafter Standard Detail 117”)as a pre authorized design for the Small Cell Facilities. Section XV.3.2 Order of Preference.This Franchise adopts the following order of preference for the design of Small Cell Facilities: AGENDA ITEM #1. a) ORDINANCE NO.5936 27 a)Small Cell Facilities meeting Standard Detail 117.No conditional use permit is required to site Small Cell Facilities meeting Standard Detail 117;other City Approvals may be required,in conformance with the City’s Codes. b)Upon Franchisee’s demonstration that the Section XV.3.2(a)design is not technically feasible:On existing poles within the Right of Way,in conformance with the City’s Codes. c)Upon Franchisee’s demonstration that the Section XV.3.2(a)and Section XV.3.2 b)designs are not technically feasible:On existing or proposed traffic signals,provided that safety standards are met,and in conformance with the City’s Codes. Section XV.3.3 Existing Infrastructure:Master Lease Agreements and Site Specific Agreements. a)Franchisee acknowledges and agrees that if Franchisee requests to place new or replacement structures,as described in RCW 35.21.860,in the Rights of Way or place Facilities on City owned structures,which are not otherwise covered under a master lease agreement with the City,then Franchisee may be required to enter into a site specific agreement consistent with RCW 35.21.860 in order to construct such Facilities in the Right of Way.Such agreements may require a site specific charge payable to the City unless prohibited by law.The approval of a site specific agreement is at the discretion of each of the parties thereto. b)This Section XV.3.3 does not place an affirmative obligation on the City to allow the placement of new infrastructure on public property or in the Rights of Way, nor does it relieve Franchisee from any provision of the City’s Codes related to the siting of wireless facilities. c)Replacement poles or structures are permissible provided that Franchisee removes the old pole or structure promptly,but no more than thirty 30)days after the installation of the replacement pole or structure. AGENDA ITEM #1. a) ORDINANCE NO.5936 28 Section XV.3.4 Concealment.Franchisee shall construct its Facilities consistent with the applicable concealment or stealth requirements as described in the City’s Codes as the same exist or are hereinafter amended,or in the applicable permit(s),lease,site specific agreement or license agreement,in order to minimize the visual impact of such Facilities. Section XV.3.5 Light and Noise Requirements.Each Small Cell Facility must comply with the City’s Codes’requirements pertaining to light and noise. Section XV.4 Eligible Facilities Requests.The parties acknowledge that it is the intent of this Franchise to provide general authorization to use the Rights of Way for Small Cell Facilities. The designs in a Small Cell Permit including the dimensions and number of antennas and equipment boxes and the pole height are intended and stipulated to be concealment features when considering whether a proposed modification is a substantial change under Section 6409(a) of the Spectrum Act,47 U.S.C.1455(a). Section XV.5 Inventory.Franchisee shall maintain a current inventory of Small Cell Facilities throughout the Term of this Franchise.Franchisee shall provide to City a copy of the inventory report no later than one hundred eighty 180)days after the Effective Date of this Franchise,and shall be updated within thirty 30)days of a reasonable request by the City.The inventory report shall include GIS coordinates,date of installation,type of pole used for installation,description/type of installation for each Small Cell Facility installation and photographs taken before and after the installation of the Small Cell Facility and taken from the public street.Small Cell Facilities that are considered Deactivated Facilities,as described in Section XVII.1,shall be included in the inventory report and Franchisee shall provide the same information as is provided for active installations as well as the date the Facilities were deactivated and the date the Deactivated Facilities were removed from the Right of Way.The City shall compare the inventory report to its records to identify any discrepancies,and the parties will work together in good faith to resolve any discrepancies.Franchisee is not required to report on future inventory reports any Deactivated Facilities which were removed from the AGENDA ITEM #1. a) ORDINANCE NO.5936 29 Right of Way since the last reported inventory and may there after omit reference to the Deactivated Facilities. Section XV.6 Graffiti Abatement.As soon as practical,but not later than fourteen 14) days from the date Franchisee receives notice or is otherwise aware,Franchisee shall remove all graffiti on any of its Small Cell Facilities in which it is the owner of the pole or structure or on the Small Cells Facilities themselves attached to a third party pole i.e.graffiti on the shrouding protecting the radios).The foregoing shall not relieve Franchisee from complying with any City graffiti or visual blight ordinance or regulation. Section XVI.Insurance. Section XVI.1 Franchisee shall procure and maintain for so long as Franchisee has Facilities in the Public Ways,insurance against claims for injuries to persons or damages to property which may arise from or in connection with the exercise of rights,privileges and authority granted to Franchisee.Franchisee shall require that every subcontractor maintain substantially insurance coverage with reasonable and prudent policy limits as required of Franchisee under the Franchise.Franchisee shall endeavor to require that every contractor maintain substantially the same insurance coverage with substantially the same policy limits as required of Franchisee,or otherwise reasonably approved by the City,while doing work hereunder.Franchisee shall procure insurance from insurers with a current A.M.Best rating of not less than A.Franchisee shall provide a copy of a certificate of insurance and blanket additional insured endorsement to the City for its inspection at the time of acceptance of this Franchise,and such insurance certificate shall evidence a policy of insurance that includes: a)Automobile Liability insurance with limits of 5,000,000 combined single limit per occurrence for bodily injury and property damage; b)Commercial General Liability insurance,written on an occurrence basis with limits of 5,000,000 per occurrence for bodily injury and property damage and 5,000,000 general aggregate including personal and advertising injury,contractual liability;premises; AGENDA ITEM #1. a) ORDINANCE NO.5936 30 operations;independent contractors;products and completed operations;and broad form property damage;explosion,collapse and underground XCU); c)Workers’Compensation coverage or qualified self insurance as required by the Industrial Insurance laws of the State of Washington;and d)Excess Umbrella liability policy with limits of 5,000,000 per occurrence and in the aggregate. Section XVI.2 Payment from a self insured retention,if applicable,shall be the sole responsibility of Franchisee.Franchisee may utilize any combination of primary and umbrella excess liability insurance policies to satisfy the insurance policy limits required in Section XVI. Section XVI.3 The insurance policies obtained by Franchisee,with the exception of Workers’Compensation and Employer’s Liability,shall include the City,its officers,officials, employees,Additional Insureds”),as an additional insured with regard to activities performed by or on behalf of Franchisee.The coverage shall contain no special limitations on the scope of protection afforded to the Additional Insureds except of claims solely caused by the Additional Insureds.In addition,the insurance policy shall contain a clause stating that coverage shall apply separately to each insured against whom a claim is made or suit is brought,except with respect to the limits of the insurer’s liability.Franchisee shall provide to the City upon acceptance a certificate of insurance and blanket additional insured endorsement.Receipt by the City of any certificate showing less coverage than required is not a waiver of Franchisee’s obligations to fulfill the requirements.Franchisee’s required insurance shall be primary insurance with respect to the Additional Insureds.Any insurance maintained by the Additional Insureds shall be in excess of Franchisee’s required insurance and shall not contribute with it. Section XVI.4 Upon receipt of notice from its insurer(s)Franchisee shall provide the City with thirty 30)days’prior written notice of any cancellation of any insurance policy,required pursuant to this Section XVI if coverage is not replaced.Franchisee shall,prior to the effective date of such cancellation,obtain replacement insurance policies meeting the requirements of this Section XVI.Failure to provide the insurance cancellation notice and to furnish to the City AGENDA ITEM #1. a) ORDINANCE NO.5936 31 replacement insurance policies meeting the requirements of this Section XVI shall be considered a material breach of this Franchise and subject to the City’s election of remedies described in Section XXI below.Notwithstanding the cure period described in Section XXI.2,the City may pursue its remedies immediately upon a failure to furnish replacement insurance. Section XVI.5 Franchisee’s maintenance of insurance as required by this Section XVI shall not be construed to limit the liability of Franchisee to the coverage provided by such insurance, or otherwise limit the City’s recourse to any remedy available at law or equity.Further, Franchisee’s maintenance of insurance policies required by this Franchise shall not be construed to excuse unfaithful performance by Franchisee. Section XVI.6 As of the Effective Date of This Franchise,Franchisee is not self insured. Should Franchisee wish to become self insured at the levels outlined in this Franchise at a later date,Franchisee shall comply with the following:i)provide the City,upon request,a copy of Franchisee or its parent’s most recent audited financial statements if such financial statements are not otherwise publicly available;ii)Franchisee or its parent company is responsible for all payments within the self insured retention;and iii)Franchisee assumes all defense and indemnity obligations as outlined in the indemnification terms of this Franchise. Section XVII.Abandonment of Franchisee’s Telecommunications Network. Section XVII.1 Where any Facilities or portions of Facilities are no longer needed and their use is to be discontinued,the Franchisee shall immediately report such Facilities in writing Deactivated Facilities”)to the Community and Economic Development Administrator or designee.This notification is in addition to the inventory revisions addressed in Section XV.5 Deactivated Facilities,or portions thereof,shall be completely removed within ninety 90)days and the site,pole or infrastructure restored to its pre existing condition. Section XVII.2 If Franchisee leases a structure from a landlord and such landlord later abandons the structure,for example by building a replacement structure,Franchisee shall remove or relocate its Facilities within ninety 90)days of such notification from the landlord at no cost to the City and shall remove the pole if so required by the landlord. AGENDA ITEM #1. a) ORDINANCE NO.5936 32 Section XVII.3 Upon the expiration,termination,or revocation of the rights granted under this Franchise,Franchisee shall remove all of its Facilities from the Rights of Way within ninety 90)days of receiving written notice from the Community and Economic Development Administrator or designee.The Facilities,in whole or in part,may not be abandoned by Franchisee without written approval by the City.Any plan for abandonment or removal of Franchisee’s Facilities must be first approved by the Community and Economic Development Administrator or designee,and all necessary permits must be obtained prior to such work. Franchisee shall restore the Rights of Way to at least the same condition the Rights of Way were in immediately prior to any such installation,construction,relocation,maintenance or repair, reasonable wear and tear excepted,provided Franchisee shall not be responsible for any damages to the Rights of Way not caused by Franchisee or any person doing work for Franchisee. All work performed within the Rights of Way shall be performed in accordance with the City’s Codes.Franchisee shall be solely responsible for all costs associated with removing its Facilities. Section XVII.4 Notwithstanding Section XVII.1 above,the City may permit Franchisee’s Facilities to be abandoned in place in such a manner as the City may prescribe.Upon permanent abandonment,and Franchisee’s agreement to transfer ownership of the Facilities to the City, Franchisee shall submit to the City a proposal and instruments for transferring ownership to the City. Section XVII.5 Any Facilities that are not removed within one hundred and eighty 180) days of either the date i)of termination or revocation of this Franchise,or ii)the City issued a permit authorizing removal,whichever is later,shall automatically become the property of the City.Any costs incurred by the City in safeguarding such Facilities or removing the Facilities shall be reimbursed by Franchisee.Nothing contained within this Section XVII shall prevent the City from compelling Franchisee to remove any such Facilities through judicial action when the City has not permitted Franchisee to abandon said Facilities in place. Section XVII.6 The provisions of this Section XVII shall survive the expiration,revocation, or termination of this Franchise and for so long as Franchisee has Facilities in Rights of Way. AGENDA ITEM #1. a) ORDINANCE NO.5936 33 Section XVIII.Bonds. Section XVIII.1 Franchisee shall furnish a performance bond Performance Bond”) written by a corporate surety reasonably acceptable to the City equal to at least 150%of the estimated cost of constructing Franchisee’s Facilities,excluding materials,within the Rights of Way of the City prior to commencement of any such work.The Performance Bond shall guarantee the following:1)timely completion of construction;2)construction in compliance with all applicable plans,permits,technical codes,and standards;3)proper location of the Facilities as specified by the City;4)restoration of the Rights of Way and other City properties affected by the construction;5)submission of as built drawings after completion of construction;and 6)timely payment and satisfaction of all claims,demands,or liens for labor, materials,or services provided in connection with the work which could be asserted against the City or City property.Said bond must remain in full force until the completion of construction, including final inspection,corrections,and final approval of the work,recording of all easements, provision of as built drawings,and the posting of a Maintenance Bond as described in Section XVIII.2.Compliance with the Performance Bond requirement of the City’s Codes shall satisfy the provisions of this Section XVIII.1.In lieu of a separate Performance Bond for individual projects involving work in the Franchise Area,Franchisee may satisfy the City’s bond requirements by posting a single on going performance bond in an amount approved by the City. Section XVII.2 Maintenance Bond.Maintenance Bond.Franchisee shall furnish a two 2) year maintenance bond Maintenance Bond”),or other surety acceptable to the City,at the time of final acceptance of construction work on Facilities within the Rights of Way.The Maintenance Bond amount will be equal to ten percent 10%)of the documented final cost of the construction work.The Maintenance Bond in this Section XVIII.2 must be in place prior to City’s release of the bond required by Section XVIII.1.Compliance with the Maintenance Bond requirement of the City’s Codes shall satisfy the provisions of this Section XVIII.2.In lieu of a separate Maintenance Bond for individual projects involving work in the Franchise Area,Franchisee may satisfy the City’s bond requirements by posting a single on going maintenance bond in an amount approved by City. AGENDA ITEM #1. a) ORDINANCE NO.5936 34 Section XVIII.3 Franchise Bond.Franchisee shall provide City with a bond in the amount of Fifty Thousand Dollars 50,000.00)Franchise Bond”)running or renewable for the term of this Franchise,in a form and substance reasonably acceptable to City.In the event Franchisee shall fail to substantially comply with any one or more of the provisions of this Franchise following notice and a reasonable opportunity to cure,then there shall be recovered jointly and severally from Franchisee and the bond any actual damages suffered by City as a result thereof,including but not limited to staff time,material and equipment costs,compensation or indemnification of third parties,and the cost of removal or abandonment of facilities hereinabove described. Franchisee specifically agrees that its failure to comply with the terms of this Section XVIII.3 shall constitute a material breach of this Franchise.The amount of the bond shall not be construed to limit Franchisee's liability or to limit the City's recourse to any remedy to which the City is otherwise entitled at law or in equity. Section XIX.Modification.The City and Franchisee hereby reserve the right to alter,amend,or modify the terms and conditions of this Franchise upon written agreement of both parties to such alteration,amendment or modification. Section XX.Revocation.If Franchisee willfully violates or fails to comply with any material provisions of this Franchise,then at the election of the Renton City Council after at least thirty 30)days written notice to Franchisee specifying the alleged violation or failure,the City may revoke all rights conferred and this Franchise may be revoked by the City Council after a hearing held upon such notice to Franchisee.Such hearing shall be open to the public and Franchisee and other interested parties may offer written and/or oral evidence explaining or mitigating such alleged noncompliance.Within thirty 30)days after the hearing,the Renton City Council,on the basis of the record,will make the determination as to whether there is cause for revocation, whether the Franchise will be terminated,or whether lesser sanctions should otherwise be imposed.The Renton City Council may in its sole discretion fix an additional time period to cure violations.If the deficiency has not been cured at the expiration of any additional time period or if the Renton City Council does not grant any additional period,the Renton City Council may by resolution declare the Franchise to be revoked and forfeited or impose lesser sanctions.If AGENDA ITEM #1. a) ORDINANCE NO.5936 35 Franchisee appeals revocation and termination,such revocation may be held in abeyance pending judicial review by a court of competent jurisdiction,provided Franchisee is otherwise in compliance with the Franchise. Section XXI.Remedies to Enforce Compliance. Section XXI.1 The City may elect,without any prejudice to any of its other legal rights and remedies,to obtain an order from the superior court having jurisdiction compelling Franchisee to comply with the provisions of the Franchise and to recover damages and costs incurred by the City by reason of Franchisee’s failure to comply.In addition to any other remedy provided herein, the City reserves the right to pursue any remedy to compel or force Franchisee and/or its successors and assigns to comply with the terms hereof,and the pursuit of any right or remedy by the City shall not prevent the City from thereafter declaring a forfeiture or revocation for breach of the conditions herein.Provided,further,that by entering into this Franchise,it is not the intention of the City or Franchisee to waive any other rights,remedies,or obligations as otherwise provided by law equity,or otherwise,and nothing contained here shall be deemed or construed to effect any such waiver. Section XXI.2 If Franchisee shall violate,or fail to comply with any of the provisions of this Franchise,or should it fail to heed or comply with any notice given to Franchisee under the provisions of this Franchise,the City shall provide Franchisee with written notice specifying with reasonable particularity the nature of any such breach and Franchisee shall undertake all commercially reasonable efforts to cure such breach within thirty 30)days of receipt of notification.If the parties reasonably determine the breach cannot be cured within 30)thirty days,the City may specify a longer cure period,and condition the extension of time on Franchisee's submittal of a plan to cure the breach within the specified period,commencement of work within the original thirty 30)day cure period,and diligent prosecution of the work to completion.If the breach is not cured within the specified time,or Franchisee does not comply with the specified conditions,the City may,at its discretion,1)revoke this Franchise with no further notification,or 2)claim damages of Two Hundred Fifty Dollars 250.00)per day against the Franchise Bond set forth in Section XVIII.3,or 3)pursue other remedies as described in AGENDA ITEM #1. a) ORDINANCE NO.5936 36 Section XXI.1 above.Liquidated damages described in this Section XXI.2 shall not be offset against any sums due to the City as a tax or reimbursement pursuant to Section XIV. Section XXII.Non Waiver.The failure of the City to insist upon strict performance of any of the covenants and agreements of this Franchise or to exercise any option herein conferred in any one or more instances,shall not be construed to be a waiver or relinquishment of any such covenants,agreements or option or any other covenants,agreements or option. Section XXIII.City Ordinances and Regulations.Nothing herein shall be deemed to restrict the City’s ability to adopt and enforce all necessary and appropriate ordinances regulating the performance of the conditions of this Franchise,including any valid ordinance made in the exercise of its police powers in the interest of public safety and for the welfare of the public.The City shall have the authority at all times to reasonably control by appropriate regulations the location,elevation,manner of construction and maintenance of Facilities by Franchisee,and Franchisee shall promptly conform with all such regulations,unless compliance would cause Franchisee to violate other requirements of law.In the event of a conflict between the provisions of this Franchise and any other generally applicable ordinance(s)enacted under the City’s police power authority,such other ordinances(s)shall take precedence over the provisions set forth herein. Section XXIV.Cost of Publication.The cost of publication of this Franchise shall be borne by Franchisee,if applicable. Section XV.Acceptance.Franchisee shall execute and return to the City its execution and acceptance of this Franchise in the form attached hereto as Exhibit B.In addition,Franchisee shall submit proof of insurance obtained and additional insured endorsement pursuant to Section XVI,any Performance Bond,if applicable,pursuant to Section XVIII.1 and the Franchise Bond required pursuant to Section XVIII.3.The administrative fee pursuant to Section XIV.1 is due within thirty 30)days of receipt of the invoice from the City. Section XXVI.Survival.All of the provisions,conditions,and requirements of Section V,Section VI,Section VIII,Section XXII,Section XVII,Section XXVI,Section XXVII.3,Sections XXXVIII.1 through AGENDA ITEM #1. a) ORDINANCE NO.5936 37 XXXVIII.5,and Section XXXVIII.9 of this Franchise shall be in addition to any and all other obligations and liabilities Franchisee may have to the City at common law,by statute,or by contract,and shall survive the City’s Franchise to Franchisee for the use of the Franchise Area, and any renewals or extensions thereof,or as otherwise provided herein.All of the provisions, conditions,regulations and requirements contained in this Franchise shall further be binding upon the heirs,successors,executors,administrators,legal representatives and assigns of Franchisee and all privileges,as well as all obligations and liabilities of Franchisee shall inure to its heirs,successors and assigns equally as if they were specifically mentioned where Franchisee is named herein. Section XXVII.Assignment. Section XXVII.1 This Franchise may not be directly or indirectly assigned,transferred,or disposed of by sale,lease,merger,consolidation or other act of Franchisee,by operation of law or otherwise,unless approved in writing by the City,which approval shall not be unreasonably withheld,conditioned or delayed.The above notwithstanding,Franchisee may freely assign this Franchise in whole or in part to a parent,subsidiary,or affiliated entity,unless there is a change of control as described in Section XXVII.2 below,or for collateral security purposes.Franchisee shall provide prompt,written notice to the City of any such assignment.In the case of transfer or assignment as security by mortgage or other security instrument in whole or in part to secure indebtedness,such consent shall not be required unless and until the secured party elects to realize upon the collateral.For purposes of this Section XXVII,no assignment or transfer of this Franchise shall be deemed to occur based on the public trading of Franchisee’s stock;provided, however,any tender offer,merger,or similar transaction resulting in a change of control shall be subject to the provisions of this Franchise. Section XXVII.2 Any transactions that singularly or collectively result in a change of more than fifty percent 50%)of the ultimate ownership or working control of Franchisee,ownership or working control of the Facilities,ownership or working control of affiliated entities having ownership or working control of Franchisee or of the Facilities,or of control of the capacity or bandwidth of Franchisee’s Facilities,shall be considered an assignment or transfer requiring City AGENDA ITEM #1. a) ORDINANCE NO.5936 38 approval.Transactions between affiliated entities are not exempt from City approval if there is a change in control as described in the preceding sentence.Franchisee shall promptly notify the City prior to any proposed change in,or transfer of,or acquisition by any other party of control of Franchisee.Every change,transfer,or acquisition of control of Franchisee shall cause a review of the proposed transfer.The City shall approve or deny such request for an assignment or transfer requiring City’s consent within one hundred twenty 120)days of a completed application from Franchisee,unless a longer period of time is mutually agreed to by the parties or when a delay in the action taken by the City is due to the schedule of the City Council and action cannot reasonably be obtained within the one hundred twenty 120)day period.In the event that the City adopts a resolution denying its consent and such change,transfer,or acquisition of control has been affected,the City may revoke this Franchise,following the revocation procedure described in Section XX above.The assignee or transferee must have the legal,technical,financial,and other requisite qualifications to own,hold,and operate Franchisee’s Services.Franchisee shall reimburse the City for all direct and indirect costs and expenses reasonably incurred by the City in considering a request to transfer or assign this Franchise,in accordance with the provisions of Section XIV.2 and Section XIV.3,and shall pay the applicable application fee. Section XXVII.3 Franchisee may,without prior consent from the City:i)lease the Facilities,or any portion,to another person;ii)grant an indefeasible right of user interest in the Facilities,or any portion,to another person;or iii)offer to provide capacity or bandwidth in its Facilities to another person,provided further,that Franchisee shall at all times retain exclusive control over its Facilities and remain fully responsible for compliance with the terms of this Franchise,and Franchisee shall furnish,upon request from the City,a copy of any such lease or agreement,provided that Franchisee may redact the name,street address except for City and zip code),Social Security Numbers,Employer Identification Numbers or similar identifying information,and other information considered confidential under applicable laws provided in such lease or agreement,and the lessee complies,to the extent applicable,with the requirements of this Franchise and applicable City requirements.Franchisee’s obligation to remain fully responsible for compliance with the terms under this Section XXVII.3 shall survive AGENDA ITEM #1. a) ORDINANCE NO.5936 39 the expiration of this Franchise but only if and to the extent and for so long as Franchisee is still the owner or has exclusive control over the Facilities used by a third party. Section XXVIII.Extension.If this Franchise expires without renewal,the City may,subject to applicable law: a)Allow Franchisee to maintain and operate its Facilities on a month to month basis, provided that Franchisee maintains insurance for such Facilities during such period and continues to comply with this Franchise;or b)The City may order the removal of any and all Facilities at Franchisee’s sole cost and expense consistent with Section XVII. Section XXIX.Entire Agreement.This Franchise constitutes the entire understanding and agreement between the parties as to the subject matter herein and no other agreements or understandings,written or otherwise,shall be binding upon the parties upon execution of this Franchise. Section XXX.Eminent Domain.The existence of this Franchise shall not preclude the City from acquiring by condemnation in accordance with applicable law,all or a portion of the Franchisee’s Facilities for the fair market value thereof.In determining the value of such Facilities,no value shall be attributed to the right to occupy the area conferred by this Franchise. Section XXXI.Vacation.If at any time the City,by ordinance,vacates all or any portion of the area affected by this Franchise,the City shall not be liable for any damages or loss to the Franchisee by reason of such vacation.The City shall notify the Franchisee in writing not less than ninety 90)days before vacating all or any portion of any such area.The City may,after ninety 90)days written notice to the Franchisee,terminate this Franchise with respect to such vacated area. Section XXXII.Notice.Any Notice or information required or permitted to be given to the parties under this Franchise agreement may be sent to the following addresses unless otherwise specified: AGENDA ITEM #1. a) ORDINANCE NO.5936 40 City: City of Renton Attn:Administrator,Community Economic Development Department 1055 South Grady Way Renton,WA 98057 With a copy to: City of Renton Attn:City Attorney 1055 South Grady Way Renton,WA 98057 Franchisee: New Cingular Wireless PCS,LLC Attn:Network Real Estate Administration Site No.City of Renton Small Cell Franchise Agreement WA) 1025 Lenox Park Blvd NE,3rd Floor Atlanta,GA 30319 With a copy to: New Cingular Wireless PCS,LLC Attn:AT&T Legal Dept Network Operations Site No.City of Renton Small Cell Franchise Agreement WA) 208 S.Akard Street Dallas,TX 75202 4206 Section XXXIII.Severability.If any Section,sentence,clause or phrase of this Franchise should be held to be invalid or unconstitutional by a court of competent jurisdiction,such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other Section,sentence, clause or phrase of this Franchise unless such invalidity or unconstitutionality materially alters the rights,privileges,duties,or obligations hereunder,in which event either party may request renegotiation of those remaining terms of this Franchise materially affected by such court’s ruling. AGENDA ITEM #1. a) ORDINANCE NO.5936 41 Section XXXIV.Compliance with All Applicable Laws.Franchisee agrees to comply with all present and future federal,state and local laws,ordinances,rules and regulations,except to the extent that the Franchisee has a vested right in accordance with the vested rights doctrine under Washington case law or as codified at RCW 19.27.095,including all City requirements relating to the provisions of the State Environmental Policy Act SEPA”),unless otherwise exempt.This Franchise is subject to ordinances of general applicability enacted pursuant to the City’s police powers.Franchisee shall,at its own expense,maintain its Facilities in a safe condition,in good repair and in a manner suitable to the City.Additionally,Franchisee shall keep its Facilities free of debris and anything of a dangerous,noxious or offensive nature or which would create a hazard or undue vibration,heat,noise or any interference with City services.In the event of a change in applicable law that materially affects any material term of this Franchise,the rights or obligations of either party hereunder,or the ability of either party to perform any material provision hereof,the parties shall renegotiate in good faith such affected provisions with a view toward agreeing to acceptable new terms as may be required or permitted as a result of such legislative,regulatory,judicial,or other legal action.If,after good faith negotiations,the parties agree that resolution will not be reached,then either party may initiate an appropriate action in any regulatory or judicial forum of competent jurisdiction. Section XXXV.Attorneys’Fees.If a suit or other action is instituted in connection with any controversy arising out of this Franchise,the prevailing party shall be entitled to recover all of its costs and expenses,including such sum as the court may judge as reasonable for attorneys’fees, costs,expenses and attorneys’fees upon appeal of any judgment or ruling. Section XXXVI.Hazardous Substances.Franchisee shall not introduce or use any hazardous substances chemical or waste),in violation of any applicable law or regulation,nor shall Franchisee allow any of its agents,contractors or any person under its control to do the same. Franchisee will be solely responsible for and will defend,indemnify and hold the City,its officers, officials,employees,agents and volunteers harmless from and against any and all claims,costs and liabilities including reasonable attorneys’fees and costs,arising out of or in connection with the cleanup or restoration of the property associated with Franchisee’s use,storage,release,or AGENDA ITEM #1. a) ORDINANCE NO.5936 42 disposal of hazardous substances,whether or not intentional,and the use,storage,release,or disposal of such substances by Franchisee’s agents,contractors or other persons acting under Franchisee’s control,whether or not intentional. Section XXXVII.Licenses,Fees and Taxes.Prior to constructing any improvements,Franchisee shall obtain a business or utility license from the City.Franchisee shall pay promptly and before they become delinquent,all taxes on personal property and improvements owned or placed by Franchisee and shall pay all license fees and public utility charges relating to the conduct of its business,shall pay for all permits,licenses and zoning approvals,shall pay any other applicable tax unless documentation of exemption is provided to the City and shall pay utility taxes and license fees imposed by the City. Section XXXVIII.Miscellaneous. Section XXXVIII.1 Franchisee releases,covenants not to bring suit,and agrees to indemnify,defend,and hold harmless the City,its officers,employees,and agents from any and all claims,costs,judgments,awards,or liability to any person,for injury or death of any person, or damage to property,caused by or arising out of any acts or omissions of Franchisee,its agents, servants,officers,or employees in the performance of this Franchise and any rights granted by this Franchise.These indemnification obligations shall extend to claims that are not reduced to a suit and any claims that may be compromised,with Franchisee’s prior written consent,prior to the culmination of any litigation or the institution of any litigation. Section XXXVIII.2 Inspection or acceptance by the City of any work performed by Franchisee at the time of completion of construction shall not be grounds for avoidance by Franchisee of any of its indemnification obligations under this Franchise. Section XXXVIII.3 The City shall promptly notify Franchisee of any claim or suit and request in writing that Franchisee indemnify the City.Franchisee may choose counsel to defend the City subject to this Section XXXVIII.3.The City’s failure to so notify and request indemnification shall not relieve Franchisee of any liability that Franchisee might have,except to the extent that such failure prejudices Franchisee’s ability to defend such claim or suit.In the AGENDA ITEM #1. a) ORDINANCE NO.5936 43 event that Franchisee refuses the tender of defense in any suit or any claim,as required pursuant to the indemnification provisions within this Franchise,and said refusal is subsequently determined by a court having jurisdiction or such other tribunal that the parties shall agree to decide the matter),to have been a wrongful refusal on the part of Franchisee,Franchisee shall pay all of the City’s reasonable costs for defense of the action,including all expert witness fees, costs,and attorney’s fees,and including costs and fees incurred in recovering under this indemnification provision.If separate representation to fully protect the interests of both parties is necessary,such as a conflict of interest between the City and the counsel selected by Franchisee to represent the City,then upon the prior written approval and consent of Franchisee, which shall not be unreasonably withheld,the City shall have the right to employ separate counsel in any action or proceeding and to participate in the investigation and defense thereof, and Franchisee shall pay the reasonable fees and expenses of such separate counsel,except that Franchisee shall not be required to pay the fees and expenses of separate counsel on behalf of the City for the City to bring or pursue any counterclaims or interpleader action,equitable relief, restraining order or injunction.The City’s fees and expenses shall include all out of pocket expenses,such as consultants and expert witness fees,and shall also include the reasonable value of any services rendered by the counsel retained by the City but shall not include outside attorneys’fees for services that are unnecessarily duplicative of services provided the City by Franchisee.Each party agrees to cooperate and to cause its employees and agents to cooperate with the other party in the defense of any such claim and the relevant records of each party shall be available to the other party with respect to any such defense. Section XXXVIII.4 The obligations of Franchisee under the indemnification provisions of Section XXXVIII and any other indemnification provision herein shall apply unless the damage or injury arises from the sole negligence or willful misconduct of the City,its officers,agents, employees,volunteers,or elected or appointed officials,or contractors.Notwithstanding the preceding sentence,to the extent the provisions of RCW 4.24.115 are applicable,the parties agree that the indemnity provisions hereunder shall be deemed amended to conform to said statute and liability shall be allocated as provided therein.It is further specifically and expressly understood that the indemnification provided constitutes Franchisee’s waiver of immunity under AGENDA ITEM #1. a) ORDINANCE NO.5936 44 Title 51 RCW,solely for the purposes of this indemnification,relating solely to indemnity claims made by the City directly against the Franchisee for claims made against the City by Franchisee’s employees.This waiver has been mutually negotiated by the parties. Section XXXVIII.5 Notwithstanding any other provisions of Section XXXVIII,Franchisee assumes the risk of damage to its Facilities located in the Public Ways and upon City owned property from activities conducted by the City,its officers,agents,employees,volunteers, elected and appointed officials,and contractors,except to the extent any such damage or destruction is caused by or arises from any sole negligence,willful misconduct,or criminal actions on the part of the City,its officers,agents,employees,volunteers,or elected or appointed officials,or contractors.In no event shall either party be liable to the other for any indirect, incidental,special,consequential,exemplary,or punitive damages,including by way of example and not limitation lost profits,lost revenue,loss of goodwill,or loss of business opportunity in connection with the performance or failure to perform under this Franchise.The parties release and waive any and all such claims against the other,and their respective officers,agents, employees,volunteers,or elected or appointed officials,or contractors,as applicable. Franchisee further agrees to indemnify,hold harmless and defend the City against any claims for damages,including,but not limited to,business interruption damages and lost profits,brought by or under users of Franchisee’s Facilities as the result of any interruption of service due to damage or destruction of Franchisee’s Facilities caused by or arising out of activities conducted by the City,its officers,agents,employees or contractors,except to the extent any such damage or destruction is caused by or arises from the sole negligence or any willful misconduct on the part of the City,its officers,agents,employees,volunteers,or elected or appointed officials,or contractors. Section XXXVIII.6 The indemnification provisions of Sections XXXVIII.1 through XXXVIII.5 shall survive the expiration,revocation,or termination of this Franchise. Section XXXVIII.7 Franchisee is solely responsible for determining whether its Small Cell Facilities interfere with telecommunications facilities of utilities and other franchisees within the Rights of Way.Franchisee shall comply with the rules and regulations of the Federal AGENDA ITEM #1. a) ORDINANCE NO.5936 45 Communications Commission regarding radio frequency interference when siting its Small Cell Facilities within the Franchise Area.Franchisee,in the performance and exercise of its rights and obligations under this Franchise shall not physically or technically interfere in any manner with the existence and operation of any and all existing utilities,sanitary sewers,water mains,storm drains,gas mains,poles,aerial and underground electrical and telephone wires,electroliers, cable television,and other telecommunications,utility,or municipal property,without the express written approval of the owner or owners of the affected property or properties,except as expressly permitted by applicable law or this Franchise,and as long as such equipment is operating in accordance with applicable laws and regulations. Section XXXVIII.8 City and Franchisee respectively represent that its signatory is duly authorized and has full right,power and authority to execute this Franchise. Section XXXVIII.9 This Franchise shall be construed in accordance with the laws of the State of Washington.Venue for any dispute related to this Franchise shall be the United States District Court for the Western District of Washington,or King County Superior Court. Section XXXVIII.10 Section captions and headings are intended solely to facilitate the reading thereof.Such captions and headings shall not affect the meaning or interpretation of the text herein. Section XXXVIII.11 Where the context so requires,the singular shall include the plural and the plural includes the singular. Section XXXVIII.12 Franchisee shall be responsible for obtaining all other necessary approvals,authorizations and agreements from any party or entity and it is acknowledged and agreed that the City is making no representation,warranty or covenant whether any of the foregoing approvals,authorizations or agreements are required or have been obtained by Franchisee by any person or entity. Section XXXVIII.13 This Franchise may be enforced at both law and equity. AGENDA ITEM #1. a) ORDINANCE NO.5936 46 Section XXXVIII.14 Franchisee acknowledges that it,and not the City,shall be responsible for the premises and equipment’s compliance with all marking and lighting requirements of the FAA and the FCC.Franchisee shall indemnify and hold the City harmless from any fines or other liabilities caused by Franchisee’s failure to comply with such requirements,except to the extent such failure is due to the actions or inactions of the City.Should Franchisee or the City be cited by either the FCC or the FAA because the Facilities or the Franchisee’s equipment is not in compliance and should Franchisee fail to cure the conditions of noncompliance within the timeframe allowed by the citing agency,the City may either terminate this Franchise immediately on notice to the Franchisee or proceed to cure the conditions of noncompliance at the Franchisee’s expense. Section XXXIX.Ordinance Effective Date.This ordinance,being an exercise of a power specifically delegated to the City legislative body,is not subject to referendum,and shall take effect five 5) days after passage and publication of an approved summary thereof consisting of the title Effective Date”). This portion of page intentionally blank.] AGENDA ITEM #1. a) ORDINANCE NO . 5936 PASSED BY THE CITY COUNCIL this 4th day of November, 2019 . APPROVED BY THE MAYOR this 4th day of November, 2019 . Approved as to form : Shane Moloney, City Attorney Date of Publication : 4/8/2019 (Summary) ORD:2094:10/10/19 47 AGENDA ITEM #1. a) ORDINANCE NO. 5936 SUMMARY OF ORDINANCE NO. 5936 City of Renton, Washington On the 4th day of November, 2019, the City Council of the City of Renton passed Ordinance No . 5936 . A summary of the content of said Ordinance, consisting of the title, is provided as follows: AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, GRANTING TO NEW CINGULAR WIRELESS PCS, LLC AND ITS AFFILIATES, SUCCESSORS AND ASSIGNS, THE RIGHT, PRIVILEGE, AUTHORITY AND NONEXCLUSIVE FRANCHISE FOR TEN YEARS, TO CONSTRUCT, MAINTAIN, OPERATE, REPLACE AND REPAIR A TELECOMMUNICATIONS NETWORK FOR SMALL CELL TECHNOLOGY, IN, ACROSS, OVER, ALONG, UNDER, THROUGH AND BELOW CERTAIN DESIGNATED PUBLIC RIGHTS-OF-WAY OF THE CITY OF RENTON, WASHINGTON. The full text of this Ordinance will be mailed upon request . FILED WITH THE CITY CLERK: 10/24/2019 PASSED BY THE CITY COUNCIL : 11/4/2019 PUBLISHED: 11/8/2019 EFFECTIVE DATE: 11/13/2019 ORDINANCE NO.: 5936 48 AGENDA ITEM #1. a) 49 EXHIBIT A FRANCHISEE’S INITIAL DEPLOYMENT PLAN Design of the small cell facilities will follow the City’s standard detail,as noted in Section XV.3 Design. AGENDA ITEM #1. a) EXHIBIT B STATEMENT OF ACCEPTANCE New Cingular Wireless PCS, LLC, for itself, its successors and assigns, hereby accepts and agrees to be bound by all lawful terms, conditions and provisions of the Franchise attached hereto and incorporated herein by this reference. New Cingular Wireless PCS, LLC, a Delaware limited liability company By: AT&T Mobility Corporation Its: Mana By: Date: l2-- \Z _ • k Name: t,12..,, v/Arac,- Title: ,.-- t..25c,C5r11u42- STATE OF OREGON ss. COUNTY OF WASHINGTON On this 10th day of December, 2019, before me the undersigned, a Notary Public in and for the State of Oregon, duly commissioned and sworn, personally appeared, Wayne Wooten, of AT&T Mobility Corporation, the company that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said company, for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal on the date hereinabove set forth. L -ll.'j c-_. OFFICIAL STAMP JUDITH MULLENSinature NOTARY PUBLIC-OREGON COMMISSION NO.987715 Judith Mullen MY COMMISSION EXPIRES MAY 16,2023 NOTARY PUBLIC in and for the State of Oregon, residing at Tualatin, OR. MY COMMISSION EXPIRES: May 6th, 2023 ERZ1592311.DOCX;3/00005.080024/} 51 AGENDA ITEM #1. a) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, GRANTING TO NEW CINGULAR WIRELESS PCS, LLC AND ITS AFFILIATES, SUCCESSORS AND ASSIGNS, THE RIGHT, PRIVILEGE, AUTHORITY AND NONEXCLUSIVE FRANCHISE EXTENSION FOR FIVE YEARS, TO CONSTRUCT, MAINTAIN, OPERATE, REPLACE AND REPAIR A TELECOMMUNICATIONS NETWORK FOR SMALL CELL TECHNOLOGY IN, ACROSS, OVER, ALONG, UNDER, THROUGH AND BELOW CERTAIN DESIGNATED PUBLIC RIGHTS-OF-WAY OF THE CITY OF RENTON, WASHINGTON PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, New Cingular Wireless PCS, LLC (“Franchisee”) was granted a five (5) year nonexclusive franchise pursuant to Ordinance 5936 on November 4, 2019 (“Franchise”); and WHEREAS, Section I.1 of Ordinance 5936 states “at any time not less than sixty (60) days before the expiration of the current Franchise term, Franchisee may make a written request for an additional Franchise term of five (5) years. City shall grant such request to Franchisee, in accordance with then-applicable laws, unless Franchisee is or has been in default of the terms of this Franchise beyond applicable notice and cure periods;” and WHEREAS, Renton Municipal Code 5-19-5 allows the Franchisee to renew its term unless certain ability, capacity, compliance, or other conditions exist; and WHEREAS, RCW 35A.47.040 does not restrict extension or renewal of this Franchise; and WHEREAS, the federal Telecommunications Act of 1996 (47 USC 151 et seq) does not restrict an extension of the Franchise; and WHEREAS, on May 29, 2024, the Franchisee submitted a written request to the City of Renton requesting an additional Franchise term of five years; and AGENDA ITEM #1. a) ORDINANCE NO. ________ 2 WHEREAS, the City has reviewed the Franchise record and confirmed that the Franchisee is not in violation of conditions of RMC 5-19-5, and is not, nor has been, in default of the terms of the Franchise beyond applicable notice and cure periods. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. The City shall grant one (1) extension of five (5) years to the Franchisee, pursuant to section I.1 of the agreement created by Ordinance 5936 and commencing on the effective date of this ordinance, set forth in Section III herein. SECTION II. If any section, subsection, sentence, clause, phrase, or word of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase, or word of this ordinance. SECTION III. This ordinance shall be in full force and effect five (5) days after publication of a summary of this ordinance in the City's official newspaper. The summary shall consist of this ordinance's title. PASSED BY THE CITY COUNCIL the day of , 2024. ______________________________ Jason A. Seth, City Clerk APPROVED BY THE MAYOR this day of , 2024. ______________________________ Armondo Pavone, Mayor AGENDA ITEM #1. a) ORDINANCE NO. ________ 3 Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD-CED:24ORD015:10/01/2024 AGENDA ITEM #1. a) AB - 3686 City Council Regular Meeting - 14 Oct 2024 SUBJECT/TITLE: 2025 and 2026 Utility Revenue Requirements, Capital Improvement Program, and Fees RECOMMENDED ACTION: Refer to Utilities Committee DEPARTMENT: Public Works Utility Systems Division STAFF CONTACT: Ron Straka, Utility Systems Director EXT.: 7239 FISCAL IMPACT SUMMARY: The proposed revenue increase will generate $375,331 in 2025 for the water utility, $248,268 in 2026 for the wastewater utility, and $447,102 in 2025, and $464,509 in 2026 for the surface water utility. There is no proposed revenue increase for the water utility in 2026 and for wastewater in 2025. Also, there is no proposed revenue increase for the Skyway wholesale water rate. SUMMARY OF ACTION: The Public Works (PW) Utility Systems Divisionhired a consultant to complete the comprehensive rate study and update the Utility Rate Modelsfor the 2025 and 2026 biennium budget and provide six-year revenue projections for each utility.The recommended revenue increases for the water utility in 2025 is 2%and 0% in 2026, 0% in 2025 and 2% in 2026 for the wastewater utility, and 3.5% each year for the surface waterutility.The combined total dollar increase per month for all three utility sections for an average single- family residential customer is $1.35 in 2025 and $1.29 in 2026. In addition, staff proposes to continue to defer the King County Sewer Rate Stabilization Charge for 2025 and 2026. The Metropolitan King County Council has adopted the wastewater treatment charge for 2025, which is collected by the city from our wastewater utility customers and passed through to King County. The PW Utility Systems Division recommends the adoption of the approved 2025 King County wastewater treatment charge of $58.28 and the 2026 projected King County wastewater treatment charge of $62.36. The Metropolitan King County Council will adopt the 2026 wastewater treatment charge before July 1, 2025. If the 2026 adopted rate is different than the projected 2026 wastewater treatment charge, we will present the adopted rate to Renton City Council for adoption. Staff also proposes increasing the utilitysystem development charges for the waterutility by $175 (3.61%), the wastewater utility by $375 (10.27%), and thesurface water utility$50 (2.17%)in 2025for a typical new single- family connection to provide funding forutilitycapital improvement programs.The 2026 utility system development charges will be the same as the 2025 charges for the water, wastewater and surface water utilities. The city’swater utility provides wholesale water service to Skyway Water and Sewer District pursuant toan approved Interlocal Agreement (CAG-93-097).We propose that the 2025 and 2026 wholesale water rate remain at the 2024 rate of $3.84 per one-hundred cubic-feet. EXHIBITS: AGENDA ITEM #2. a) A. Issue Paper B. Average Monthly Rates C. System Development Charges D. System Development Charges Comparison E. CIP Maps F. Fee Schedule G. 2025-2026 Rates Ordinance STAFF RECOMMENDATION: The staff recommended changes as outlined in this agenda bill and attached ordinance will be included in the budget legislation presented to the Committee of the Whole as part of the 2025-2026 biennium budget adoption. No action by the Utilities Committee is requested. AGENDA ITEM #2. a) Public Works Department Memorandum DATE:October 14, 2024 TO:Ed Prince, Council President Members of Renton City Council VIA:Armondo Pavone, Mayor FROM:Martin Pastucha, Administrator STAFF CONTACT:Ronald Straka, Utility Systems Director, ext. 7239 SUBJECT:2025 and 2026 Water, Wastewater and Surface Water Utilities Revenue Requirements, Capital Improvement Program (CIP), and Fees ISSUE: Should Council approve the proposed 2025 and 2026 utility revenue requirements for the water, wastewater and surface water utilities, CIP, and fees, and adopt the proposed ordinance to implement the changes? RECOMMENDATION: •Approve the proposed 2025 and 2026 revenue increase of 2% in 2025 and 0% in 2026 for the water utility, 0% in 2025 and 2% in 2026 for the wastewater utility, and 3.5% each year for the surface water utility. •Approve the recommendation to not implement the King County rate stabilization charge for 2025 and 2026 per wastewater account. •Adopt the 2025 King County wastewater treatment monthly charge of $58.28 that has been approved by the Metropolitan King County Council and the proposed 2026 monthly charge of $62.36. •Approve the proposed 2025 and 2026 water, wastewater and surface water utility system development charges for inclusion in the city’s 2025-2026 fee schedule. •Approve the proposed Skyway wholesale water rate of $3.84 for 2025 and 2026. AGENDA ITEM #2. a) Ed Prince, Council President Page 2 of 8 October 14, 2024 \ •Adopt the proposed piped utility rate ordinance to implement the 2025-2026 water, wastewater, and surface water utility rates; the utility system development charges; the Skyway Water and Sewer District wholesale water rates; and the King County pass through 2025 and 2026 wastewater treatment charges to be effective on the first day of January 2025. BACKGROUND SUMMARY: In 2010 Council adopted financial criteria to stabilize the utility funds. The financial criteria include: •Fund Balance, Operating Reserves, and Rate Stabilization: ▪Water, Wastewater, and Surface Water funds: 12% of annual operating expenses or 30 to 45 days. ▪King County Wastewater Treatment: $380,000. •Capital Contingency as System Reinvestment and Debt Service: ▪Water: 1.25 DSC and approximately $4 million annual system reinvestment. ▪Wastewater: 1.25 DSC and approximately $3 million annual system reinvestment. ▪Surface Water: 1.25 debt service coverage (DSC) and approximately $3 million annual system reinvestment. •Bonds versus Cash Funded Projects: ▪All non-Capital Improvement Program (CIP) projects should be paid for using rates (programs, system plans, education materials, etc.). ▪All system reinvestment, maintenance, replacement, and rehabilitation CIPs should be paid for using rates. ▪CIPs for new infrastructure, growth or increased capacity can be paid for using bonds. Over the past 14 years, city utilities placed a high priority on reinvesting in the existing infrastructure and replacing, rehabilitating, and maintaining the system. The city has been able to avoid issuing additional debt during this period, which has stabilized the utility funds, reduced debt service costs and debt to equity ratio. The water, wastewater and surface water utilities are on target to be debt free by 2027, with plenty of capacity to issue debt as appropriate in the future. Budget Considerations Capital Improvement Program (CIP) – Funds 425, 426 and 427 AGENDA ITEM #2. a) Ed Prince, Council President Page 3 of 8 October 14, 2024 \ The emphasis in the utility capital improvement program for 2025 and 2026 is on providing infrastructure improvements, replacement, and rehabilitation to serve existing and future customers, and to support planned growth. In addition, the water, wastewater and surface water utilities must maintain a level of system reinvestment to ensure our infrastructure is reliably replaced or rehabilitated to maintain and operate efficiently to provide safe, reliable, and sustainable utility services to the community. Water Utility The water utility CIP consists of transmission and distribution main improvements and system reinvestments, infrastructure improvements, increased reservoir capacity for future growth demands and emergency power improvements (see water CIP map for project locations). The water utility CIP projects for 2025 and 2026 and requested budget amounts (in thousands of dollars) are listed below in priority order: Water Utility Projects 2025 Budget Request 2026 Budget Request Highlands Water Main Improvements $ 233 $ 200 Emergency Response Projects $ 100 $ 100 WSDOT I-405 Water Relocations $ 113 - Steel/AC Watermain Replacement $ 1,500 $ 1,500 Telemetry Improvements $ 100 $ 100 Reservoir PRV Meters $ 300 $ 300 Reservoir Recoating and Seismic Upgrade $ 200 $ 200 Emergency Power to Pump Stations $ 300 $ 300 Water System Security Improvements $ 50 $ 50 Water Pump Stations Rehabilitation $ 700 $ 500 Water Main Oversizing $ 100 $ 100 Minor (small) Water Improvement Projects $ 200 $ 200 Total Budget Request $ 3,896 $ 3,550 Wastewater Utility The wastewater utility CIP consists of major sewer upgrades including the Kennydale Lakeline and the replacement/rehabilitation of force mains, gravity sewer mains and lift stations (see wastewater CIP map for project locations). The wastewater utility CIP projects for 2025 and 2026 and requested budget amounts (in thousands of dollars) are listed below in priority order: Wastewater Utility Projects 2025 Budget Request 2026 Budget Request Kennydale Lakeline Sewer Upgrade $ 5,138*- AGENDA ITEM #2. a) Ed Prince, Council President Page 4 of 8 October 14, 2024 \ Lift Station Rehabilitation $ 500 $ 500 Force Main Rehabilitation/Replacement $ 500 $ 500 Sanitary Sewer Rehabilitation/Replacement $ 2,000 $ 2,000 Miscellaneous/Emergency Projects $ 200 $ 200 Septic to Sewer Program $ 500 $ 500 Total Budget Request $ 4,338 $ 3,700 *Anticipated grant funding of $4.5 million, not included in total Surface Water Utility The surface water utility CIP consists of improvement projects including the Stevens Ave NW to Lind Ave NW Storm System Project, the SW 23rd Street Drainage and Fish Passage Improvements Project, and the Taylor Ave Phase 2 Drainage Improvement Project, infrastructure maintenance, replacement and rehabilitation and program work (see surface water CIP map for project locations). The surface water utility CIP projects for 2025 and 2026 and requested budget amounts (in thousands of dollars) are listed below in priority order: Surface Water Utility Projects 2025 Budget Request 2026 Budget Request Small Scale Stormwater Projects $ 600 $ 400 Cedar River Gravel Removal (Maintenance Dredge) Project - $ 500 * Sediment Basin Cleaning - $ 150 Talbot Hill Area Mosquito Abatement Program $ 80 $ 80 SW 23rd Street Drainage and Fish Passage Improvements $ 250 $ 500 East Valley Road Storm Systems Improvements $ 102 $ 104 Copper Ridge Storm System Improvement - $ 400 Stevens Ave NW to Lind Ave NW Storm System $ 350 $ 500 Big Soos Creek at 116th Ave SE Improvement Project - $ 500 Taylor Ave Phase 2 Drainage Improvement - $ 500 Total Budget Request $ 1,382 $ 3,134 *Anticipated grant funding, not included in total Utility Rate Modeling The Utility Systems Division completed the comprehensive rate study including the utility rate modeling for the 2025 and 2026 budget and to provide a six-year revenue projection, with assistance from a utility financial consultant. The goal is to minimize increase in rates while ensuring adequate funding for the operation and maintenance programs, regulatory compliance programs, and Capital Improvement Programs. The increase in capital funding is necessary to complete the proposed system maintenance and improvement projects for each utility in 2025 and 2026. Other factors driving the AGENDA ITEM #2. a) Ed Prince, Council President Page 5 of 8 October 14, 2024 \ need for additional revenue for the utilities are increased operating costs due to increased labor/benefits costs, inflation and proposed new program requests included in the proposed 2025-2026 budget. Rate modeling for 2025 and 2026 showed no need for a rate increase for the water and wastewater utilities in both years, and a 3.5% increase each year for the surface water utility. However, due to unknown factors including increasing salary and benefit costs, inflation rates, construction costs increases and additional future costs associated with the new Asset Management Program, along with the fact that the water utility has not had a utility rate increase since 2022, a 2% rate increase for the water utility in 2025 ($0.75 per month increase) and a 2% rate increase for the wastewater utility in 2026 ($0.67 per month increase) is recommended. By having a small incremental 2% rate increase for the water utility in 2025 and the wastewater utility in 2026, it will help to prevent the need for a larger rate increases in the future. The aggregate rate revenue increase for all three utilities for 2025 is 1.53% and 1.44% in 2026. Please see below for past rate increases: Historical Rate Increases Historical Inflation Rate (CPI-U*) Year Water Wastewater Surface Water June-to-June 2015 0%0%4%1.6% 2016 0%0%4%1.8% 2017 0%4%4%3.0% 2018 0%4%4%3.3% 2019 0%0%0%2.3% 2020 2%2%2%0.9% 2021 2%2%2%5.5% 2022 2%2%2%10.1% 2023 0%3%4%4.6% 2024 0%3%4%3.8% Totals 6%20%30%37% 10-year Average 0.6%2.0%3.0%3.7% *Seattle-Tacoma-Bellevue WA AGENDA ITEM #2. a) Ed Prince, Council President Page 6 of 8 October 14, 2024 \ Exhibit B shows the proposed average monthly bills for the single-family customer class. The average single-family customer’s total monthly city utility bill will increase by $1.35 in 2025 (1.53% overall) and $1.29 in 2026 (1.44% overall), with the proposed utility rate increases for the city’s water, wastewater, and surface water utilities. Proposed New Programs Included the 2025-2026 Utility Rates The following are the new programs proposed as part of the 2025-2026 city budget that are funded by the water, wastewater and surface water utilities and included in the proposed 2025-2026 rates for the utilities: 1. New 1.0 FTE Wastewater/Surface Water Utility Maintenance Supervisor – This new position request is needed due to the number of staff in the Wastewater/ Surface Water Maintenance section. We currently have only one maintenance supervisor managing 26 staff, which exceeds the supervisor’s span of control. The additional maintenance supervisor position will provide better supervision of the staff resulting in increased productivity, accountability, and enhanced customer service. The position will also be capable of managing the day-to-day operations of the maintenance teams and provide coverage when the other maintenance supervisor is on vacation, sick, or on other types of leave. The total additional cost is $199,307, which is split equally between the wastewater utility and the surface water utility Funds 406 and 407. 2. New 1.0 FTE Civil Engineer III position in the water utility – To support the new reclaimed water program and water utility capital improvement program. The additional funding requested for the new civil engineer III position in the water utility (Fund 405) is $214,099 in year 2026. 3. New 1.0 FTE Water Quality/Treatment Plant Operator In-Training position – The purpose of the new program is to enable existing staff under supervision to perform water treatment operator work to gain the required experience to be eligible to become a State certified water treatment plant operator. This will ensure that the water utility has sufficient certified water treatment plant operators' candidates in the system for when the currently employed certified water treatment operators retire or leave employment with the city. A water treatment operator certification requires up to four-years of working experience in water quality and treatment operations before an employee would be eligible to take the Water Treatment Operator IV exam to become a certified Water Treatment Operator IV. The State Department of Health requires all public water systems to have certified water treatment operators. The requested additional budget for the new water quality/ treatment plant operator in-training position is $167,672 to be funded by Fund 405. 4. Public Works Department Asset Management Program – The Public Works Department is proposing to implement an Asset Management Program and is currently developing an asset management plan to guide implementation of this program. The Asset Management program will map and inventory Public Works Department infrastructure assets citywide, integrate the use of CityWorks (work AGENDA ITEM #2. a) Ed Prince, Council President Page 7 of 8 October 14, 2024 \ order system) and Geographic Information System (GIS) with data systems related to infrastructure condition assessments. This information will be used by the asset management software to analyze actions necessary to extend the useful life of assets. This will enable improved prioritization of repairs, rehabilitations, or replacement of assets and project long-term capital investment needs. The Utility Systems Division (Funds 405, 406, and 407) will be contributing approximately half of the funding for one (1) new FTE Asset Management Section Manager position, which will be partially funded by the elimination of a vacant half-time (0.5 FTE) Secretary II position in the Public Works Utility Systems Division. 5. Commercial driver’s license training – $15,000 of additional training budget for the positions that are required to have a commercial driver’s license. The funding will be used when new employees or promotions of current employees are hired into positions that requires commercial driver’s licenses. Each utility budget is requesting an additional $5,000 to be included in Funds 405, 406, and 407. King County Wastewater Treatment Charge (Fund 416) In 2021, King County changed their rate setting process for their wastewater treatment charge from biennium to annual rate adjustments. The King County wastewater treatment charge will be increasing by 5.75% ($2.84 per month) in 2025 from $55.11 per month to $58.28 per month, and a projected increase in 2026 of 7.0% ($4.08 per month) to $62.36 per month. The city is required to collect the King County wastewater treatment charge from city’s wastewater utility customers and pass the collected revenue through to King County. The Metropolitan King County Council is required to set the 2026 wastewater treatment charge by July 1, 2025. If the approved rate is different than the projected rate, we will present the approved 2026 rate to Council for approval when that has been approved. Any King County wastewater treatment rate increase impacts the wastewater utility rates by increasing the amount of utility taxes paid to the city. In 2009 we established a King County rate stabilization fund to equalize the way that King County charges for treatment. This charge has been deferred from 2017 through 2024. We are proposing to continue to not assess this charge during the 2025 and 2026 budget cycle. We will reassess the need for this charge as part of the 2027-2028 budget process. System Development Charges As part of the rate modeling, the consultant updated the system development charges necessary to pay for future capital projects that increase system capacity to serve growth. The consultant’s calculations projected increases of 3.61% for the water utility, 10.27% for the wastewater utility and 2.17% for the surface water utility for 2025. Table 2 shows the proposed utility system development charges for each of the piped utilities for a typical single-family residential customer connection. The increased utility system development charges are due to the increase in each utilities plant value from the city’s AGENDA ITEM #2. a) Ed Prince, Council President Page 8 of 8 October 14, 2024 \ contributions to capital improvement projects that provide increased capacity for growth. An increase in plant value increases the share a new customer pays to connect to the existing infrastructure. All three piped utilities have completed several capital improvement projects that added significant capacity to their infrastructure. These investments by the utilities are the major factor in the increased connection charges for 2025 and 2026. No increases to the system development charges are proposed for 2026. Table 3 shows a comparison of system development charges for neighboring utilities. Renton still has very low connection charges compared to the rest of the region. Skyway Wholesale Water Rates The city’s water utility provides wholesale water service to the Skyway Water and Sewer District pursuant to the Interlocal Agreement (CAG-93-097) executed January 1, 1993. Rates are set by the water utility’s rate model using the agreed upon guidelines in the agreement with Skyway. Rates are calculated using the cash basis approach and methodology, which includes the portion of the water utility operating and maintenance (O&M) and capital costs associated with providing wholesale water to the district. The proposed wholesale water rate for 2025 and 2026 remains the same as the 2024 rate of $3.84 per one-hundred cubic-feet. CONCLUSION: Implementing the proposed 2025 and 2026 revenue requirements will allow the utilities to continue to reduce debt costs, stabilize rates, invest in existing infrastructure to prevent deterioration, failure, and/or lapse in service and complete capital improvement programs critical to the city’s business plan. The proposed system development charges reflect the increase in the value of the system and provide funding for capital projects to increase system capacity for growth. cc: Kari Roller, Administrative Services Administrator Kristin Trivelas, Fiscal Services Director Abdoul Gafour, Water Utility Engineering Manager Joe Farah, Surface Water Utility Engineering Manager Joe Stowell, Wastewater Utility Engineering Manager Duncan McKelvey, Senior Finance Analyst Teresa Phelan, Utility Systems Sr. Program Specialist AGENDA ITEM #2. a) EXHIBIT B Utility Rates for 2025 and 2026 Average Single-family Residential Monthly Rates 2024 2025 2026 Water $37.56 $38.31 $38.31 (average = 5/8" meter and 650 cf usage)Increase $$0.75 0 Increase % 2%0% Wastewater $33.67 $33.67 $34.34 Increase $0 $0.67 Increase %0%2% King County Rate Stabilization Fee $0.00 $0.00 $0.00 Surface Water $17.05 $17.64 $18.25 Increase $$0.60 $0.62 Increase % 3.5%3.5% TOTAL $88.28 $89.62 $90.91 Increase $$1.35 $1.29 Increase % 1.53%1.44% King County Treatment Charge *$55.11 $58.28 $62.36 Increase $$3.17 $4.08 Increase % 5.75%7.00% * King County updates the treatment charge annually. The 2026 treatment charge shown above (in gray) is based upon the King County Wastewater Treatment Division’s 10-year rate forecast. The 2026 rate will be set by King County by July 1, 2025. AG E N D A I T E M # 2 . a ) EXHIBIT C System Development Charges (SDC) Fee ¾” or 1” meter Single-family Residential Customers Existing SDC Fee 2024 Proposed 2025 SDC Fee ($ increase) Proposed 2026 SDC Fee Water $4,850 $5,025 ($175)$5,025 Wastewater $3,650 $4,025 ($375)$4,025 Surface Water $2,300 $2,350 ($50)$2,350 Total $10,800 $11,400 $11,400 $ (% change)$600 (5.56%)0 (0%) We are proposing to implement the utility system development charges in 2025 with no additional increases in 2026. The utility system development charges are updated every two years as part of the utility rate study done in coordination with the city’s biennial budget process. AG E N D A I T E M # 2 . a ) EXHIBIT D System Development Charges (SDC) Fee Comparison Other Agencies 2024 Existing Fees Table assumes a 5/8” x 3/4” meter for domestic use. Agency Water Wastewater Surface Water Total Skyway Water and Sewer District $14,943 $7,929 $2,300 *$25,172 Seattle $7,200 $13,361 None **$20,561 Issaquah $14,881 $2,670 $1,831 $19,382 Kirkland $12,198 $4,989 $1,556 $18,743 Redmond $10,728 $2,890 $1,342 $14,960 King County Water District 90 $9,000 $3,650 *$2,300 *$14,950 Auburn $9,553 $3,544 $1,759 $14,856 Bellevue $11,337 $2,513 $807 $14,657 Soos Creek Water and Sewer District $4,809 $6,303 $2,300 *$13,412 City of Kent $9,328 None $2,802 $12,130 Lakehaven Water and Sewer District $5,251 $5,544 $1,193 ***$11,988 Renton (proposed 2025 and 2026)$5,025 $4,025 $2,350 $11,400 Olympia $5,032 $4,338 $1,915 $11,285 Renton (existing 2024)$4,850 $3,650 $2,300 $10,800 * City of Renton 2024 SDC fee ** Included in wastewater fee *** City of Federal Way 2024 surface water SDC fee AG E N D A I T E M # 2 . a ) Drinking Water Projects in the 2025-2026 Budget 1 1 2025-2026 Drinking Water Capital Improvement Projects Exhibit E - CIP Maps AGENDA ITEM #2. a) 181 900 900 900 515 169 169 515 181 515 167 167 §¨¦405 §¨¦405 B e llevueBellevueKingCounty KingCounty King C o u n t y King C o u n t y KentKent Kent Kent Tukwila Tukwila Kennydale Lakeline Sewer Improvement Project Lift Station and Force Main Rehabilitation Phase 4 Sanitary Sewer Replacement Project Phase 1 Sanitary Sewer Replacement Project Phase 2 Kensington Crest Lift Station Wedgewood Lift Station Stonegate Lift Station Shy Creek Liftstation Sanitary Sewer Rehabilitation CIPP Lining Project County of King, Esri, HERE, City of Renton, County of King, Bureau of Land Management, Esri, HERE, Garmin, GeoTechnologies, Inc., Intermap, USGS, EPA, City of Renton, WA WASTEWATER UTILITY PROGRAMS 2025-2026 -Septic to Sewer Program -WSDOT I-405 Wastewater Improvements -Wastewater Utility GIS -Wastewater Operations Master Plan Wastewater Projects in the 2025-2026 Budget C edar River Lake Washing to n 0 0.5 1 1.5 Miles City of Renton | Public Works | Utility Systems I GIS09/24/2024 11:18 AM Kennydale Lakeline Sewer Improvement Project Lift Station and Force Main Rehabilitation Phase 4 Sanitary Sewer Replacement Project Phase 1 Sanitary Sewer Replacement Project Phase 2 CIPP Pipe Improvements J AGENDA ITEM #2. a) KENTKENT KING COUNTYKING COUNTY NEWCASTLENEWCASTLE Small Scale Project - NE 12th St Storm System Improvements East Valley Road Storm System Improvements Big Soos Creek at 116th Ave SE Improvement Project Copper Ridge Storm System Improvement Madsen Creek Sediment Basin Cleaning Small Scale Project - 3533 NE 17th Pl Pipe Rehabilitation Talbot Hill Area Mosquito Abatement Program Maplewood Creek Sediment Basin Cleaning SW 23rd Street Drainage and Fish Passage Improvements Taylor Ave Phase 2 Small Scale Project - 331 Oakesdale Ave SW Pipe Rehabilitation Stevens Ave NW to Lind Ave NW Storm System Small Scale Project - Panther Creek at Talbot Road S Culvert Rehabilitation Cedar River Gravel Removal 181 515 900 515 169 515 167 167 §¨¦405 §¨¦405 B e llevueBellevueKingCounty KingCounty King C o u n t y King C o u n t y K e n t K e n t Kent Kent Tukwila Tukwila Surface Water Projects Proposed in the 2025-2026 Budget Cedar River City of Renton | Public Works | Utility Systems I GIS09/24/2024 Lake Washin g t o n Project Limits/Location AGENDA ITEM #2. a) City of Renton Fee Schedule 2023-2024 2025 20263. a. (i) Grade and Fill Quantity Cleared or Disturbed Area < 50 cy < 500 sf 50 cy - 499 cy 500 sf - < 3/4 acre 500 cy - 4,999 cy 3/4 ac - < 1 ac 5,000 cy - 49,999 cy 1 ac - < 2.5 ac 50,000 cy - 99,999 cy 2.5 ac - < 5 ac 100,000 cy and larger 5 ac and larger (1) (a)N/A N/A (b)$536 $553 (c)$722 $744 (d)$1,083 $1,117 (f)$1,443 $1,488 (e)$1,804 $1,860 (2) (a)N/A N/A (b)$516 $532 (c)$1,031 $1,063 (d)$1,371 $1,414 (f)$2,742 $2,827 (e)$4,114 $4,242 (3)1.5 x Review/Intake Fee 1.5 x Review/Intake Fee (4)1.5 x Review/Intake Fee 1.5 x Review/Intake Fee (ii) (1)6% of cost 6% of cost (2)$9,000 + 5% over $150,000 $9,000 + 5% over $150,000 (3)$17,500 + 4% over $350,000 $17,500 + 4% over $350,000 (iii)0.5% of cost 0.5% of cost (iv) $289 $298 (2)$1,753 $1,807 (v)$3,093 $3,189 b. (i) (1)$1,155 $1,191 (2)$2,320 $2,392 (3)$4,640 $4,784 (ii) (1)15% of total 15% of total (2)10% of total 10% of total (3)5% of total 5% of total (iii)$866 $893 c. (i) (1) (a)$5,025 $5,025 (b)$671 $671 (c)$4,025 $4,025 (2) (a)$25,125 $25,125 (b)$3,355 $3,355 (c)$20,125 $20,125 (3) (a)$40,200 $40,200 (b)$5,368 $5,368 (c)$32,200 $32,200 Tier 3 4 Includes three (3) review cycles. Additional reviews will be charged $1,700 each. Clearing, Grading, Excavation, and Mining Permits and License Fees: Fees shall be based on the highest tier triggered. Solid Waste Fills Review Fee1: Inspection/Issuance Fee: Review/Intake Fee: Tier 0 (no permit required) 5 New or Replaced Hard Surface < 500 sf 500 sf - 4,999 sf 5,000 sf - < 1 ac 1 ac - < 2.5 ac 2.5 ac - < 5 ac 5 ac and larger Tier 1 Tier 2 Tier 4 Tier 5 Over $50,000 but less than $200,000 5/8 x 3/4 inch and 1 inch: Water and Wastewater System Development Charges (SDC): Utility System Development Charges (SDC): Latecomers' Agreement Application Fees1,3: Processing fee2 (Nonrefundable) $50,000 or less Over $50,000 but less than $200,000 $200,000 and over Wet weather (annual fee) 5 If deemed necessary by the City in its sole discretion, the City will contract with one or more consultants to provide plan reviews and/or inspections with the related costs and expenses payable by the applicant. 6 The fee shall be based up percentage of the estimated cost of improvements. 7 Cost of improvements shall be based on the City's bond quantity worksheet and shall include all project related improvements outside of the building envelopes, including, but not limited to, all costs required to construct the following: paved parking lots, private sidewalks or walkways; private and public storm water management facilities; temporary erosion and sedimentation control facilities; water quality facilities; public and private streets; public and private sanitary sewers; public water main improvements; required off-site street, bike and pedestrian improvements; street lighting improvements; required landscaping and street tree improvements; and site grading and mobilization costs. The applicant may elect to submit a separate, itemized cost estimates for each item of improvement subject to the approval by the City. 9 This fee shall be $0 for City of Renton Capital Improvement Projects or city funded projects. Project shall pay for site inspection services at actual cost. 8 Fifty Percent (50%) of the fee is due at Civil Construction Permit Application and the remaining shall be due prior to permit issuance. 3 This fee shall be $0 for City of Renton Capital Improvement Projects or city funded projects. Fire sprinkler service fee 1,2 Wastewater fee3 Fire sprinkler service fee 1,2 1-1/2 inch: Multi-family: 2 units, Duplexes, & Accessory Dwelling Unit (ADU)1 $50,000 or less Wastewater fee3 2 inch: Water service fee3 Water service fee3 Civil construction plan review and inspection fees6,7,8: Plan Revision following Permit Issuance: (1)Minor (Results in a change 10% or less than the cost of improvements7. Excludes minor adjustments that are approved by the City to be shown on record drawings.) Major (Results in a change of greater than 10% of the cost of improvements7.) Annual Licenses of Solid Waste Fills Review Fee1,2: $150,000.00 or less Over $150,000.00 but less than $350,000.00 $350,000.00 and over Site Plan/Zoning Review and Inspection Fee6,7 1 The fee for a grading license authorizing additional work to that under a valid license shall be the difference between the fee paid for the original license and the fee shown for the entire project. 2 Any unused fee may be carried forward to the next year. If any work is done before the license is issued, the grading license fee shall be doubled. 3 All developers, municipal or quasi-municipal entities, or utility corporations or companies, except those specifically exempted, shall pay fees under this Section. Exempted entities include City- franchised cable TV, cable modem, natural gas, telecommunications, and electrical power. SECTION XII. DEVELOPMENT FEES (CONTINUED)Site Work, Utilities, and Right of Way Fees: Site Work and Civil Construction Fees9: Tier 0 1 2 3 4 Segregation processing fee, if applicable Tier 3 Tier 4 Tier 5 Tier 0 (no permit required) Tier 1 Tier 2 $200,000 and over Water service fee3 Fire sprinkler service fee 1,2 Wastewater fee3 1 Fees are based on the amount covered by the Latecomers'. 2 The administration and collection fee is deducted from each individual latecomer fee payment and the balance forwarded to the holder of the latecomer’s agreement pursuant to RMC 9-5, Tender of Fee. Exhibit FAGENDA ITEM #2. a) City of Renton Fee Schedule 2023-2024 2025 20263. c. (4) (a)$80,400 $80,400 (b)$10,736 $10,736 (c)$64,400 $64,400 (5) (a)$125,625 $125,625 (b)$16,776 $16,776 (c)$100,625 $100,625 (6) (a)$251,250 $251,250 (b)$33,551 $33,551 (c)$201,250 $201,250 (7) (a)$402,000 $402,000 (b)$53,682 $53,682 (c)$322,000 $322,000 (ii) (1)$2,350 $2,350 (3)$0.940 per sq foot $0.940 per sq foot (iii)$840 + administrative costs $840 + administrative costs (iv) d. (i) (1) (a)$50 $50 (c)Time and materials Time and materials (d)$275 $275 (e)$95 $95 (f)$250 $250 (g)$560 $560 (h)$1,025 $1,025 (i)$80 $80 (k)$185 $185 (n)Time and materials Time and materials (o)$50 $50 (p)$200 $200 (2) (a) (i)$2,875 $2,875 (ii)$400 $400 (b) (i)$2,935 $2,935 (ii)$400 $400 (c) (i)$2,875 $2,875 (ii)$460 $460 (d) (i)$4,605 $4,605 (ii)$750 $750 SECTION XII. DEVELOPMENT FEES (CONTINUED) Installation of stub service and meter setter only. 1” meter installed by the City. Installation of stub service and meter setter only. 1-1/2" meter installed by the City. Utility System Development Charges (SDC): (Continued) Fire sprinkler service fee 1,2 Wastewater fee3 8 inch: Addition to existing single family residence greater than 500 square feet (including mobile/manufactured homes) Fee not to exceed $2,350. 3 inch: Water service fee3 (1) Utility Construction Permit Fees: Water Construction Permit Fees: Miscellaneous water installation fees. Service size reductions Installation of stub service and meter setter only. 3/4” meter installed by City within City limits. Site Work, Utilities, and Right of Way Fees: (Continued) Water meter tests for 3/4” to 2" meter Water Testing, Construction, and Administration Fees: Drop in meter only Drop in meter only Drop in meter only Drop in meter only 3/4” meter installed by City outside City limits (b) (j) Water meter tests on meters 2" or larger Specialty water tests (lead, copper, etc) Water main connections Installation of isolation valve. Open and close fire hydrants for fire flow tests conducted by others. Water service disconnection (cut at main) Fire sprinkler service fee 1,2 Wastewater fee3 Water service fee3 Fire sprinkler service fee 1,2 Wastewater fee3 Water service fee3 Temporary Utility Connection5: (2) Utility SDC Segregation Request4 Water main cut and cap Installation of stub service and meter setter only. Water meter installation fees – City installed: Installation fees for ring and cover castings (l) (m) Water quality/inspection/purity tests Water turn ons/offs after hours New water line chlorination fee. Fee plus $0.15 per lineal foot for any footage after the first two hundred fifty (250) lineal feet All other uses charge per square foot of new impervious surface, but not less than $2,350 Fire sprinkler service fee 1,2 Wastewater fee3 4 inch: Storm Water System Development Charges (SDC): New single family residence (including mobile/manufactured homes) & Accessory Dwelling Unit (ADU) Storm Water Fee; Fee equal to thirty percent (30%) of the current SDC applicable to that portion of the property. Water service fee3 6 inch: Wastewater Fee; Annual fee equal to thirty percent (30%) of the current SDC applicable to the size of the temporary domestic water meter(s). Water Fee; Annual fee equal to thirty percent (30%) of the current SDC applicable to the size of the temporary water meter(s). (2) (3) Meter resets Repair of damage to service 30% of SDC 30% of SDC 30% of SDC 30% of SDC 30% of SDC $60 deposit + time and materials $60 deposit + time and materials Cost of test + $70 processing fee Cost of test + $70 processing fee $2,000 deposit + time and materials $250 + $0.15 per lineal foot $0.940 per sq foot $0.940 per sq foot 30% of SDC 1 Based upon the size of the fire sprinkler service (NOT detector bypass meter) 2 Unless a separate fire sprinkler service is provided, the system development charge(s) shall be based upon the size of the meter installed and a separate Fire sprinkler service fee will not be charged. 3 Any parcel that currently has water and or sewer service is eligible for a prorated system development charge is eligible for credit of the existing connection. Fee(s) based upon meter(s) proposed for final project will be reduced by the fee(s) based upon meter existing on site. 4 The applicant shall pay the City’s administrative costs for the preparation, processing and recording of the partial payment of the fee(s). If the same segregation is used for more than one utility’s special assessment district, and/or latecomer’s charge, then only one administrative fee is collected. 5 Temporary connection may be granted for a one-time, temporary, short-term use of a portion of the property for a period not to exceed three (3) consecutive years. Fee shall be paid annually (non- prorated), and shall be nonrefundable, nontransferable (from one portion of the property to another) and shall not constitute a credit to the system development charge due at the time of permanent use of the utility system. The application for temporary connection shall consist of a detailed plan and a boundary line of the proposed development service area for use in the fee determination. $2,000 deposit + time and materials $250 + $0.15 per lineal foot AGENDA ITEM #2. a) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SUBSECTIONS 8-2-2.G, 8-2-3.C, 8-2-3.E.1, 8-4-24.A.1, 8-4-31.B, 8-4-31.C.4, 8-5- 15.A, AND 8-5-15.D OF THE RENTON MUNICIPAL CODE, ESTABLISHING PIPED UTILITY RATES FOR 2025 AND 2026, AUTHORIZING CORRECTIONS, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE. THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. All portions of the Renton Municipal Code in this ordinance that are not shown in strikethrough and underline edits or are not explicitly repealed herein remain in effect and unchanged. SECTION II. Subsection 8-2-2.G of the Renton Municipal Code is amended as follows: G.Special Rates: Senior and/or disabled citizens who qualified under RMC 8- 4-31.C for low-income rates are eligible for the following monthly rates: Low-Income Subsidized Rates 202523 Rates 202624 Rates Qualified prior to May 31, 2008, 75% subsidy $4.414.10 $4.564.26 Qualify after May 31, 2008, 50% subsidy $8.828.20 $9.138.52 SECTION III. Subsection 8-2-3.C of the Renton Municipal Code is amended as follows: C. Initial Basic Category: The following documents may be used to determine the initial basic category: 1. King County Assessor’s records. 2. Records of survey, both public and private. Exhibit GAGENDA ITEM #2. a) ORDINANCE NO. ________ 2 3. Plan records or aerial photogrammetryphotogrammery. 4. Field inspection. SECTION IV. Subsection 8-2-3.E.1 of the Renton Municipal Code is amended as follows: 1. The following schedule is hereby adopted as the monthly charges to be paid to the City for surface water utility services: 202325 Rates 202426 Rates Single-family dwelling $17.6416.39 $18.2517.05 Low intensity, 0.5 acre or less $43.6840.58 per acre $45.2142.20 per acre Medium intensity, 0.5 acre or less $63.1758.69 per acre $65.3861.03 per acre High intensity, 0.5 acre or less $81.4575.67 per acre $84.3178.70 per acre Low intensity, more than 0.5 acre $87.7781.15 per acre $90.8484.40 per acre Medium intensity, more than 0.5 acre $126.29117.32 per acre $130.71122.02 per acre High intensity, more than 0.5 acre $162.90151.34 per acre $168.60157.39 per acre AGENDA ITEM #2. a) ORDINANCE NO. ________ 3 202325 Rates 202426 Rates Gravel pits $175.62163.16 per acre $181.77169.68 per acre City streets $43.7940.68 per acre $45.3242.31 per acre County, State, and Federal highways $26.2124.35 per acre $27.1225.32 per acre SECTION V. Subsection 8-4-24.A.1 of the Renton Municipal Code is amended as follows: 1. Fire Protection Charges: The private fire protection charges are hereby fixed in the following schedule: Meter 202325 Rates 202426 Rates 1 inch $6.796.66 $6.796.66 1-1/2 inch $7.597.44 $7.597.44 2 inch $9.759.56 $9.759.56 3 inch $25.7625.25 $25.7625.25 4 inch $31.6931.07 $31.6931.07 6 inch $45.5244.63 $42.5244.63 AGENDA ITEM #2. a) ORDINANCE NO. ________ 4 Meter 202325 Rates 202426 Rates 8 inch $61.3160.11 $61.3160.11 10 inch $79.1077.55 $79.1077.55 12 inch $94.9093.04 $94.9093.04 SECTION VI. Subsection 8-4-31.B of the Renton Municipal Code is amended as follows: B. Metered Rates: 1. The minimum rates for metered water supplied for all customer classifications except Skyway wholesale within the City in one (1) month or fractional period thereof are hereby fixed in the following schedule: Size of service 202325 Rates Single- family/duplex, multi-family, non-residential 202325 Rates Private irrigation, City irrigation 202426 Rates Single- family/duplex, multi-family, non-residential 202426 Rates Private irrigation, City irrigation 3/4" $19.0518.68 $11.4511.23 $19.0518.68 $11.4511.23 1" $37.7737.03 $20.4820.08 $37.7737.03 $20.4820.08 1-1/2" $72.8871.45 $34.9634.27 $72.8871.45 $34.9634.27 2" $114.22111.98 $53.5452.49 $114.22111.98 $53.5452.49 3" $234.68230.08 $113.19110.97 $234.68230.08 $113.19110.97 4" $358.02351.00 $168.47165.17 $358.02351.00 $168.47165.17 6" $698.48684.78 $319.12312.86 $698.48684.78 $319.12312.86 AGENDA ITEM #2. a) ORDINANCE NO. ________ 5 Size of service 202325 Rates Single- family/duplex, multi-family, non-residential 202325 Rates Private irrigation, City irrigation 202426 Rates Single- family/duplex, multi-family, non-residential 202426 Rates Private irrigation, City irrigation 8" $1,367.04 1,340.24 $698.30684.61 $1,367.04 1,340.24 $698.30684.61 10" $2,037.82 1,997.86 $897.93880.32 $2,037.82 1,997.86 $897.93880.32 12" $2,965.71 2,907.56 $1,296.64 1,271.22 $2,965.71 2,907.56 $1,296.64 1,271.22 2. Commodity Rates: Three (3) consumption blocks will be established for single-family and duplex customers. The size of the first block will be less than five hundred (500) cubic feet of water consumed per month. The second block will be five hundred (500) to one thousand (1,000) cubic feet of water consumed per month. The third block will be over one thousand (1,000) cubic feet of water consumed per month. The rates for these three (3) blocks are as follows: 202325 Rates 202426 Rates Less than 500 cubic feet/mo. $2.742.69/100cf $2.742.69/100cf 500 – 1,000 cubic feet/mo. $3.693.62/100cf $3.693.62/100cf Over 1,000 cubic feet/mo. $4.664.57/100cf $4.664.57/100cf AGENDA ITEM #2. a) ORDINANCE NO. ________ 6 Customers that are multi-family, non-residential, private irrigation, City irrigation, and Skyway wholesale will pay for consumption at the following rates per one hundred (100) cubic feet: 202325 Rates 202426 Rates Multi-family $3.57/100cf3.50 $3.57/100 cf3.50 Non-residential $3.76/100cf3.69 $3.76/100 cf3.69 Private Irrigation $6.04/100 cf5.92 $6.04/100 cf5.92 City Irrigation $4.24/100 cf4.16 $4.24/100 cf4.16 Hydrant Meter $6.04/100 cf5.92 $6.04/100 cf5.92 Skyway Wholesale $3.84/100 cf3.75 $3.84/100 cf SECTION VII. Subsection 8-4-31.C.4 of the Renton Municipal Code is amended as follows: 4. Low-Income Rates: a. Senior and/or disabled citizens who qualified under RMC 8-4-31.C for low- income rates, are eligible for the following monthly metered rates: Low-Income Subsidized Rates 202325 Rates 202426 Rates Qualified prior to May 31, 2008, 75% subsidy includes nine hundred (900) cubic feet of water $4.764.67 $4.764.67 AGENDA ITEM #2. a) ORDINANCE NO. ________ 7 Low-Income Subsidized Rates 202325 Rates 202426 Rates Qualify after May 31, 2008, 50% subsidy includes nine hundred (900) cubic feet of water $9.539.34 $9.539.34 Any water consumption over nine hundred (900) cubic feet of water per month shall be charged as provided in Subsections A and B of this Section. Exception for those persons who qualify under home kidney dialysis. These customers are limited to one thousand seven hundred (1,700) cubic feet of water per month before any excess is charged as provided in Subsection A and B of this Section. SECTION VIII. Subsection 8-5-15.A of the Renton Municipal Code is amended as follows: 8-5-15 SEWER CHARGES: A. Disposal Rates: The monthly rates and charges for sewage disposal service shall be as follows: 1. Single-Family: 202325 Rate 202426 Rate Single-Family $33.6732.69 $34.3433.67 2. All Other Users: AGENDA ITEM #2. a) ORDINANCE NO. ________ 8 Other Users: 202325 Rates 202426 Rates Minimum Charge – includes 750 Cubic Feet usage charge $33.6732.69 $34.3433.67 Per each additional 100 Cubic Feet usage charge over 750 Cubic Feet $3.803.69/100 cf $3.883.80/100 cf 3. Charges For Sewer Service Without City Water: In the event that water obtained from sources other than purchased from the City is either discharged or drained into the sewer system, users shall be charged by one (1) of the two (2) following methods: a. For single-family residences: 202325 Rate 202426 Rate Single-Family $33.6732.69 $34.3433.67 b. For other than single-family dwellings, the Public Works Administrator or designee shall install a water meter into such private water system at cost to property owners, and the method of billing shall be in compliance with Subsection A.2 of this Section. SECTION IX. Subsection 8-5-15.D of the Renton Municipal Code is amended as follows: AGENDA ITEM #2. a) ORDINANCE NO. ________ 9 D. Additional Charges: In addition to the foregoing charges specified in this Section, the following rates shall be charged, in accordance with the Interlocal Agreement with King County Wastewater: 1. Single-family dwelling units: Single-Family Residential: 202325 Rates 202426 Rates King County Wastewater Charge $52.1158.28 $55.1162.36 King County Rate Adjustment Charge $0.00 $0.00 2. All users other than single-family: All Users Other Than Single-Family: 202325 Rates 202426 Rates King County Wastewater Charge – Minimum Charge includes 750 Cubic Feet usage charge $52.1158.28 $55.1162.36 King County Wastewater Charge – Per each additional 100 Cubic Feet usage charge over 750 Cubic Feet $6.957.77 $7.358.31 King County Rate Adjustment Charge $0.00 $0.00 3. Any additional charges hereafter imposed by King County Wastewater under the “Industrial Cost Recovery” or “Industrial Waste Surcharge” programs required under the FWPCA (PL 92-500), Section 204, or as same may be amended AGENDA ITEM #2. a) ORDINANCE NO. ________ 10 hereafter, plus fifteen percent (15%) thereof as an additional charge for the City’s cost of implementing such programs. 4. Senior and/or disabled low-income rates: a. Senior and/or disabled citizens who qualify under RMC 8-4-31.C for low-income rates prior to May 31, 2008, are eligible for a seventy-five percent (75%) subsidy of City sewer charges and a nonsubsidized rate for the King County Wastewater charge in accordance with the Interlocal Agreement with King County Wastewater: Low-income Rates Qualified prior to May 31, 2008 202325 Rates 202426 Rates King County Wastewater Charge Non- subsidized $52.1158.28 $55.1162.36 King County Rate Adjustment Charge $0.00 $0.00 City Sewer Charge 75% subsidy $8.428.17 $8.598.42 b. All other senior and/or disabled citizens qualifying under RMC 8-4- 31.C for low-income rates after May 31, 2008, are eligible for a fifty percent (50%) subsidy for City sewer charges and a nonsubsidized rate for the King County Wastewater charge in accordance with the Interlocal Agreement with King County Wastewater: AGENDA ITEM #2. a) ORDINANCE NO. ________ 11 Low-income Rates Qualify After May 31, 2008 202325 Rates 202426 Rates King County Wastewater Charge Non- subsidized $52.1158.28 $55.1162.36 King County Rate Adjustment Charge $0.00 $0.00 City Sewer Charge 50% Subsidy $16.8416.35 $17.1716.84 5. For those senior citizens sixty-one (61) years of age or older and/or disabled citizens, when such seniors and/or disabled citizens are not otherwise eligible for special rates as low-income seniors and/or disabled citizens, but who qualify for property tax exemption pursuant to RCW 84.36.381(5)(a) and are not residents of the City shall be exempt from the fifty percent (50%) utility surcharge applicable to those customers not residents of the City. To receive this exemption the applicant must provide the information required under RMC 8-4-31.C.3. SECTION X. These rates become effective with billings computed on or after January 1, 2025 for the 2025 rates and January 1, 2026 for the 2026 rates. SECTION XI. Upon approval of the City Attorney, the City Clerk is authorized to direct the codifier to make necessary corrections to this ordinance, including the corrections of scriveners or clerical errors; references to other local, state, or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering and references. The City Clerk is further authorized to direct the codifier to update any chapter, section, or subsection titles in the Renton Municipal Code affected by this ordinance. AGENDA ITEM #2. a) ORDINANCE NO. ________ 12 SECTION XII. If any section, subsection, sentence, clause, phrase, or word of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase, or word of this ordinance. SECTION XIII. This ordinance shall be in full force and effect thirty (30) days after adoption. No later than five (5) days prior to such effective date, a summary consisting of this ordinance's title shall be published in the City's official newspaper. PASSED BY THE CITY COUNCIL the day of , 2024. Jason A. Seth, City Clerk APPROVED BY THE MAYOR this day of , 2024. Armondo Pavone, Mayor Approved as to form: Shane Moloney, City Attorney Date of Publication: PW:24ORD012:09/12/2024 AGENDA ITEM #2. a) UTILITY REVENUE AND CAPITAL IMPROVEMENT PROGRAM 2025-2026 PRESENTATION TO UTILITIES COMMITTEE OCTOBER 21, 2024 RON STRAKA, UTILITY SYSTEMS DIRECTOR AG E N D A I T E M # 2 . a ) PRESENTATION SUMMARY Financial Policies Factors Driving Rates Proposed New Positions & Programs Utility Operating Costs 2025 Utility Operating Funds Capital Improvement Program 2025-2026 Requested CIP Requested Budgets Water Utility CIP Fund 425 Budget and Map Wastewater Utility CIP Fund 426 Budget and Map Surface Water Utility CIP Fund 427 Budget and Map Proposed 2025-2026 System Development Charges Proposed 2025-2026 Utility Rates -Average Monthly Single-Family Bill 2025 Proposed Utility Rates Utility Rates vs Inflation 2015-2024 2024 Single-family Utility Bill Comparison and Proposed 2025 Increases Skyway Wholesale Water Rates King County Wastewater Treatment Charge Recommendations AG E N D A I T E M # 2 . a ) FINANCIAL POLICIES Reserves Debt Coverage: 1.25 debt service coverage Operating Reserves: 12% of operating budget or minimum of 30 days of operation Rate Stabilization: Required by bond covenants Fund Balance: Target of $380,000 KC Wastewater Treatment Annual System Reinvestment Goals Water Utility:$4 million Wastewater Utility:$3 million Surface Water Utility:$3 million AG E N D A I T E M # 2 . a ) FACTORS DRIVING RATES Capital Improvement Program Regulatory Compliance Utility Operating Costs (Maintenance & Engineering) Inflation, taxes, new programs, and staffing AG E N D A I T E M # 2 . a ) PROPOSED NEW POSITIONS & PROGRAMS Funding a portion of an asset management manager position and program software, $144K in 2025 and $132K in 2026 Eliminating a vacant secretary II (0.5 FTE) position, $47K per year Water quality/treatment plant operator in training, $160K per year Wastewater/surface water maintenance supervisor, $200K per year Water civil engineer III in 2026, $200K per year Increase training budget for commercial drivers license training, $15K per year AG E N D A I T E M # 2 . a ) UTILITY OPERATING COSTS Proposed Operating Budgets for Funds 405, 406, and 407 Utility 2024 FTEs Adjusted Budget 2024 2025 Proposed FTEs Proposed Budget 2025 2026 Proposed FTEs Proposed Budget 2026 Water (Fund 405)33.96 $14,797,461 34.96 $14,506,082 35.96 $15,111,791 Wastewater (Fund 406)21.32 $8,709,960 21.82 $8,396,429 21.82 $8,588,335 Surface Water (Fund 407)25.32 $10,955,945 25.81 $10,785,152 25.81 $10,966,697 Totals:80.6 $34,463,366 82.59 $33,687,663 83.59 $34,666,823 AG E N D A I T E M # 2 . a ) 2025 UTILITY OPERATING FUNDS COMBINED TOTALS FOR FUNDS 405, 406, AND 407 DOES NOT INCLUDE FUND RESERVES (12% OF OPERATING COSTS) REQUIRED BY THE CITY’S FINANCIAL POLICIES Engineering $5,561,632 16% Maintenance $10,630,950 32% Debt Service $2,806,224 8% IDC/ISF $8,133,246 24% Taxes $5,899,931 18% Utility Billing $655,681 2% AG E N D A I T E M # 2 . a ) CAPITAL IMPROVEMENT PROGRAM AG E N D A I T E M # 2 . a ) 2025-2026 REQUESTED CIP BUDGETS 2025 2026 Water Utility $ 3.896M $ 3.550M Wastewater Utility $ 4.338M $ 3.700M Surface Water Utility $ 1.382M $ 3.134M TOTAL:$ 9.616M $ 10.384M AG E N D A I T E M # 2 . a ) WATER UTILITY CIP BUDGET –FUND 425 Project Name 2025 Budget Request 2026 Budget Request Total 2025-2026 Budget Request Emergency Power to Water Facilities $ 300 $ 300 $ 600 Emergency Response Projects $ 100 $ 100 $ 200 Highlands Water Main Improvements $ 233 $ 200 $ 433 Minor (small) Water Capital Improvement Projects $ 200 $ 200 $ 400 Pressure Reducing Valve (PRV) Replacement $ 300 $ 300 $ 600 Reservoir Recoating and Seismic Upgrade $ 200 $ 200 $ 400 Telemetry Improvements $ 100 $ 100 $ 200 Water Main Oversizing $ 100 $ 100 $ 200 Water Main Replacement $ 1,500 $ 1,500 $ 3,000 Water Pump Station Rehabilitation $ 700 $ 500 $ 1,200 Water System Security $ 50 $ 50 $ 100 WSDOT I-405 Water Relocations $ 113 $ -$ 113 TOTAL BUDGET $ 3,896 $ 3,550 $ 7,446 Rounded to nearest $1K AG E N D A I T E M # 2 . a ) WAT E R UTILITY CIP MAP AG E N D A I T E M # 2 . a ) WASTEWATER UTILITY CIP BUDGET –FUND 426 Project Name 2025 Budget Request 2026 Budget Request Total 2025-2026 Budget Request Force Main Rehab-Replacement $ 500 $ 500 $ 1,000 Kennydale Lakeline Sewer Upgrade $ 5,138 * $ -$ 638 Lift Station Rehabilitation $ 500 $ 500 $ 1,000 Miscellaneous/Emergency Projects $ 200 $ 200 $ 400 Sanitary Sewer Rehab-Replacement $ 2,000 $ 2,000 $ 4,000 Septic To Sewer Program **$ 500 $ 500 $ 1,000 TOTAL BUDGET $ 4,338 $ 3,700 $ 8,038 Rounded to nearest $1K *Anticipated grant funding of $4.5 million, not included in the total budget **New program for 2025-2026 AG E N D A I T E M # 2 . a ) WAST EWAT E R UTILITY CIP MAP AG E N D A I T E M # 2 . a ) SURFACE WATER UTILITY CIP BUDGET – FUND 427 Project Name 2025 Budget Request 2026 Budget Request Total 2025-2026 Budget Request Big Soos Creek at 116th Ave SE Improvement Project **$ -$ 500 $ 500 Cedar River Gravel Removal (Maintenance Dredge) Project $ -$ 500 * Copper Ridge Storm System Improvement **$ -$ 400 $ 400 East Valley Road Storm System Improvements $ 102 $ 104 $ 206 Sedimentation Facility Cleaning $ -$ 150 $ 150 Small Scale Stormwater Projects $ 600 $ 400 $ 1,000 Stevens Ave NW to Lind Ave NW Storm System **$ 350 $ 500 $ 850 SW 23rd Street Drainage and Fish Passage Improvements $ 250 $ 500 $ 750 Talbot Hill Area Mosquito Abatement Program $ 80 $ 80 $ 160 Taylor Ave Phase 2 Drainage Improvement **$ -$ 500 $ 500 TOTAL BUDGET $ 1,382 $ 3,134 $ 4,516 Rounded to nearest $1K * Anticipated grant funding, not included in the total budget ** New projects for 2025-2026 AG E N D A I T E M # 2 . a ) SURFACE WAT E R UTILITY CIP MAP AG E N D A I T E M # 2 . a ) PROPOSED 2025-2026 SYSTEM DEVELOPMENT CHARGES Fees for a typical new single-family home connection 2023-2024 2025-2026 Water $4,850 $5,025 Increase $$350 $175 Increase %7.78%3.6% Wastewater $3,650 $4,025 Increase $$150 $375 Increase %4.29%10.3% Surface Water $2,300 $2,350 Increase $$200 $50 Increase %9.52%2.2% Total $10,800 $11,400 Total Increase Increase $$700 $600 Total Percentage Increase Increase %6.93%5.6% AG E N D A I T E M # 2 . a ) PROPOSED 2025-2026 UTILITY RATES Average Monthly Single-family Bill 2023 2024 2025 2026 Water $37.56 $37.56 $38.31 $38.31 (average = 5/8" meter and 650 cf usage)Increase $0 0 $0.75 0 Increase %0 0 2% 0 Wastewater $32.69 $33.67 $33.67 $34.34 Increase $$0.95 $0.98 0 $0.67 Increase %3%3%0 2% King County Rate Stabilization Fee 0 0 0 0 Surface Water $16.39 $17.05 $17.64 $18.25 Increase $$0.63 $0.66 $0.59 $0.61 Increase %4%4%3.5%3.5% TOTAL $86.64 $88.28 $89.62 $90.90 Increase $$1.58 $1.63 $1.34 $1.28 Increase %1.86%1.89%1.52%1.43% AG E N D A I T E M # 2 . a ) 2025 PROPOSED UTILITY RATES AG E N D A I T E M # 2 . a ) UTILITY RATES VS. INFLATION 2015-2024 Historical Rate Increases Historical Inflation Rate (CPI-U)* Year Water Wastewater Surface Water June-to-June 2015 0%0%4%1.6% 2016 0%0%4%1.8% 2017 0%4%4%3.0% 2018 0%4%4%3.3% 2019 0%0%0%2.3% 2020 2%2%2%0.9% 2021 2%2%2%5.5% 2022 2%2%2%10.1% 2023 0%3%4%4.6% 2024 0%3%4%3.8% Totals 6%20%30%37% 10-year Average 0.6%2.0%3.0%3.7% *SEATTLE-TACOMA-BELLEVUE WA AG E N D A I T E M # 2 . a ) 2024 SINGLE- FAMILY UTILITY BILL COMPARISON AND PROPOSED 2025 INCREASES Renton Kent Auburn Redmond Seattle Bellevue 2025 Proposed Increase Total $1.35 $10.09 $7.09 $3.84 $8.15 $9.60 2024 Water, Sewer, and Storm Total $88.27 $94.96 $96.38 $67.03 $198.09 $168.72 $88.27 $94.96 $96.38 $67.03 $198.09 $168.72 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $105.05 $103.47 $70.87 $206.24 $178.32 $89.62 AG E N D A I T E M # 2 . a ) SKYWAY WHOLESALE WAT E R RATES: 2024: $3.84 PER CCF* 2025: $3.84 PER CCF* (0%) 2026: $3.84 PER CCF* (0%) * ONE-HUNDRED CUBIC-FEET The City provides wholesale water service to Skyway Water and Sewer District pursuant to Interlocal Agreement (CAG-93-097). Rates are set by Water Utility’s rate model using the agreed upon guidelines set in the agreement with Skyway. Rates are calculated using the cash basis approach and methodology. Rates include their share of the operating and capital (infrastructure) costs that is needed to serve the district. AG E N D A I T E M # 2 . a ) KING COUNTY WASTEWATER TREATMENT CHARGE MONTHLY RATES: 2024: $55.11* 2025: $58.28* ($3.17, 5.75%) 2026 PROJECTED: $62.36* ($4.08, 7%) * RESIDENTIAL CUSTOMER EQUIVALENT The city charges and collects the King County wastewater treatment charge from city wastewater utility customers. The collected revenue is passed through to King County to fund the treatment and disposal of wastewater. The Metropolitan King County Council adopted the monthly 2025 wastewater treatment charge on June 18, 2024. The 2026 wastewater treatment charge will be approved by the Metropolitan King County Council prior to July 1, 2025. AG E N D A I T E M # 2 . a ) RECOMMENDATIONS •Approve the 2025 and 2026 utility proposed revenue increases. •Defer collection of King County rate stabilization charge for 2025 and 2026. •Approve the proposed 2025 and 2026 Utility System Development Charges. •Approve the proposed 2025 and 2026 Skyway wholesale water rates. •Adopt the King County 2025 approved wastewater treatment charge and the 2026 projected charge. AG E N D A I T E M # 2 . a ) QUESTIONS?AG E N D A I T E M # 2 . a )