HomeMy WebLinkAboutORD 5834 CITY OF RENTON, WASHINGTON
ORDINANCE NO. 5834
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, GRANTING UNTO
PUGET SOUND ENERGY, INC., A WASHINGTON CORPORATION, AND ITS
SUCCESSORS AND ASSIGNS, THE PRIVILEGE AND FRANCHISE FOR FIFTEEN (15)
YEARS, TO CONSTRUCT, OPERATE, SET, ERECT, SUPPORT, ATTACH, CONNECT,
MAINTAIN, REPAIR, REPLACE, ENLARGE AND USE FACILITIES FOR PURPOSES OF
TRANSMISSION, DISTRIBUTION AND SALE OF ELECTRICAL ENERGY AND GAS FOR
POWER, HEAT,AND LIGHTAND OTHER PURPOSES FOR WHICH ENERGYAND GAS
MAY BE USED, IN, UPON, OVER, UNDER, ALONG, ACROSS AND THROUGH THE
FRANCHISE AREA;AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, pursuant to RCW 35A.47.030,the City has the authority to grant non-exclusive
franchises for the use of public streets, bridges or other public ways, structures or places above
or blow the surface of the ground; and
WHEREAS,the City has negotiated a non-exlusive franchise with Puget Sound Energy, Inc.
("PSE"), for its use of the rights-of-way of the City of Renton to operate and maintain facilities for
the transmission, distribution and sale of electrical energy and natural gas; and
WHEREAS, this franchise was introduced to the Council on or about March 20, 2017, and
was presented to the Utilies Committee on or about March 23, 2017; and
WHEREAS, prior to adoption, the franchise was submitted to the City Attorney;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON DOES
ORDAIN AS FOLLOWS:
SECTION I. Definitions
For the purposes of this Franchise and any attachments, the following defined terms,
phrases, words and their derivations, when used in this Franchise with initial letters capitalized,
shall have the meaning provided below. When not inconsistent with the context in which the
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word is used, words used in the present tense include the future, words in the plural include the
singular, and words in the singular include the plural. Undefined words shall be given their
common and ordinary meaning.
1. Administrator: Means the Administrator of the City's Community and Economic
Development Department or designee, or any successor office responsible for
management of the City's public properties.
2. Cit1r: Means the City of Renton, a municipal corporation of the State of
Washington, and its successors and assigns.
3. Facilitv or Facilities: Means, collectively or individually, any and all:
a. Gas distribution systems, including but not limited to, gas pipes, pipelines,
mains, laterals, conduits, feeders, regulators, valves, meters, meter-reading devices,
fixtures, and communications systems and all necessary facilities and appurtenances
thereto, whether the same be located over or under ground;
b. Electric transmission and distribution systems, including but not limited to,
poles,wires, lines,conduits, ducts, cables, braces,guys, anchors and vaults,transformers,
switches, meter-reading devices, fixtures, and communication systems; and any and all
other equipment, appliances, attachments, appurtenances and other items necessary,
convenient, or in any way appertaining to any and all of the foregoing, whether the same
be located over or under ground.
4. Franchise: Means this ordinance and any related amendments, exhibits, or
appendices.
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5. Franchise Area: Means (a) all present and future roads, alleys, avenues, highways,
streets, and throughways of the City as now laid out, platted, dedicated, acquired or
improved and/or as may be hereafter laid out, platted, dedicated, acquired or improved
within the present limits of the City and as such limits may be hereafter extended or
altered, and (b) all City-owned utility easements dedicated for the placement and location
of various utilities provided such easement would permit PSE to fully exercise the privilege
granted under this Franchise within the area covered by the easement.
6. Hazardous Substance: Means any hazardous, toxic, or dangerous substance,
material, waste, pollutant, or contaminant that is classified as a hazardous substance
under applicable Laws.
7. Laws: Means any federal, state, or municipal code, statute, ordinance, decree,
executive order, governmental approvals, guideline, permits, procedures, regulation,
regulatory programs, rules, specifications, standards or Tariffs, as they exist, are
amended, or may be created.
8. Parties: Means the City and PSE.
9. PSE: Means Puget Sound Energy, Inc., a Washington corporation, and its
successors and assigns. For the avoidance of doubt, PSE's agents,contractors (of anytier),
employees, officers and representatives, when acting for or on behalf of PSE in exercising
any rights or fulfilling any obligation of PSE under this Franchise, will be included in the
definition of the term "PSE" hereunder.
10. Public Improvement Proiect: Means any City-funded capital improvement or
repair project within the Franchise Area that is undertaken by or on behalf of the City.
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11. Tariff: Has the meaning provided in WAC 480-80-030 (Definitions), or such similar
definition describing rate schedules, rules and regulations relating to charges and services
as may be adopted by the regulatory authority with jurisdiction, under the laws of the
State of Washington, over public service companies.
12. WUTC: Means the Washington Utilities and Transportation Commission or such
successor regulatory agency havingjurisdiction over public service companies.
13. Work: Means any construction, excavation, installation or other work performed
within the Franchise Area by or on behalf of PSE.
SECTION II. Purpose
1. Conditions: The purpose of this Franchise is to delineate the conditions relating
to PSE's use of the Franchise Area and to create a foundation for the Parties to work
cooperatively in the public's best interests after this Franchise becomes effective. This
Franchise is granted subject to the City's land use authority, public highway authority,
police powers, and franchise authority, and is conditioned upon the terms and conditions
provided in this Franchise and PSE's compliance with all Laws, subject to Subsection 7.1.
2. Reserved Ri�hts: This Franchise is granted upon the express condition that the
City retains the absolute authority to grant other or further franchises in, under, on,
across, over, through, along or below any Franchise Area; provided, to the extent
applicable, such authority is exercised in a manner consistent with the terms and
conditions of this Franchise. This Franchise shall, in no way, prevent or prohibit the City
from using any of its Franchise Area,or affect itsjurisdiction over any part of the Franchise
Area, and the City retains absolute authority to make all changes, relocations, repairs,
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maintenance, establishments, improvements, dedications or vacations of same as the
City may see fit; provided that the City shall at all times exercise its retained power in a
manner consistent with the terms and conditions of this Franchise.
SECTION III. Rights and Privileges Conveyed
1. Franchise Granted: Pursuant to all applicable Laws (in the manner specified in
Subsection 7.1), the City grants to PSE, under this Franchise's terms and conditions, the
privilege, right and authority to construct, operate, set, erect, support, attach, connect,
repair, maintain, replace, enlarge, use and improve its Facilities in, upon over, under,
along, across and through the Franchise Area to provide for the transmission, distribution
and sale of gas and energy for power, heat, light and such other purposes for which gas
and energy may be used.
2. Limited Franchise: This Franchise conveys a limited privilege as to the Franchise
Area in which the City has an actual interest. It is not a warranty of title or interest in the
Franchise Area. This privilege shall not limit the City's police powers, any statutory or
inherent authority, jurisdiction over the Franchise Area, or its zoning or land use
authority, and the City shall at all times exercise its retained powers in a manner
consistent with the terms and conditions of this Franchise. The terms and conditions of
this Franchise shall not, and shall not be construed to, apply to Facilities located on PSE-
owned or leased properties or easements (whether inside or outside of the Franchise
Area,whether granted by a private or public entity,and whether now existing or hereafter
acquired) and such Facilities are not, and will not be deemed to be, located pursuant to
rights derived from this Franchise or pursuant to rights otherwise granted by the City.
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This Franchise shall not convey any privilege to PSE to install Facilities on or to otherwise
use City-owned or leased properties or easements outside the Franchise Area.
3. Principal Use Limitation: This Franchise shall not authorize a principal use of the
Franchise Area for purposes other than the location, placement, operation, maintenance
and use of Facilities used in the transmission, distribution and sale of gas or electrical
energy for power, heat, or light. The City acknowledges that PSE may, from time to time,
make or allow incidental use of excess capacity of Facilities within the Franchise Area for
other purposes.
4. Franchise is Non-Exclusive: The City grants this non-exclusive Franchise to PSE to
operate, maintain and improve its Facilities within the Franchise Area as a gas
transmission and distribution system and an electrical energy transmission and
distribution system for PSE's business.
5. Acknowled�ement: PSE acknowledges by its acceptance of the granted privileges,
that it has carefully read and fully comprehends the terms and conditions of this
Franchise. PSE accepts all reasonable risks of the meaning of the provisions, terms and
conditions of the Franchise.
6. Prior Franchise Repealed: Upon the effective date of this ordinance and
acceptance of such ordinance and Franchise by PSE, all prior franchises between the City
and PSE, or its predecessors in interest, for use of the Franchise Area for placement and
operation of Facilities in connection with the distribution and sale of gas and electrical
energy shall be deemed repealed.
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7. Existin� Facilities Outside Franchise Area: Existing Faci�ities installed or
maintained by PSE in accordance with prior franchise agreements on public grounds and
places within the City (but which are not a part of the Franchise Area as defined by this
Franchise) may be maintained, repaired and operated by PSE at the location where such
Facilities exist as of the effective date of this Franchise for the term of this Franchise;
provided, however, that no such Facilities may be enlarged, improved or expanded
without the City's prior review and approval pursuant to the provisions of any applicable
Laws.
8. Third Parties: Nothing in this Franchise shall be construed to create or confer any
privilege or remedy upon any person(s) other than the City and PSE. No action may be
commenced or prosecuted against any Party by any third party claiming as a third party
beneficiary of this Franchise. This Franchise shall not release or discharge any obligation
or liability of any third party to either Party.
SECTION IV. Term
1. Len�th of Term: Each of the provisions of this Franchise shall become effective
upon PSE's acceptance of the terms and conditions of this Franchise and shall remain in
effect for fifteen (15) years, unless it is terminated pursuant to Section XXII (Dispute
Resolution). At any time not more than two (2) years nor less than one hundred and
eighty (180) calendar days before the expiration of the term of this Franchise, PSE may
make a written request and the City may consider, at its sole discretion, renewing this
Franchise for an additional five (5) year renewal period, unless either party expresses its
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intention in writing to terminate this Franchise at the conclusion of the fifteen (15) year
term.
2. Extension upon Expiration: If the Parties fail to formally renew or terminate the
Franchise prior to the expiration of its term or any extension, the Franchise shall be
extended on a year-to-year basis (or such term as the Parties may mutually agree) until a
renewed, terminated or extended Franchise is executed.
SECTION V. Recovery of Costs
1. Administrative Fee: Pursuant to RCW 35.21.860(1)(b), as it exists or may be
amended, PSE shall reimburse the City for all actual administrative expenses incurred by
the City that are directly related to receiving and approving a permit, (icense and this
Franchise, to inspect plans and construction, or for the preparation of a detailed
statement pursuant to SEPA (RCW Chapter 43.21C). Where the City incurs actual
administrative expenses for review or inspection of activities undertaken through the
authority granted in this Franchise (and such expenses are not duplicative of expenses
which are reflected in some other City-imposed charge or fee), PSE shall pay such
expenses directly to the City.
2. Utilitv Tax: Pursuant to RCW 35.21.870 (Electricity, telephone, natural gas, or
steam energy business — Tax limited to six percent — Exception) and RCW
35.21.860(1)(a), as they exist or may be amended, the City may impose a utility tax on
PSE.
3. No Franchise Fee: Pursuant to RCW 35.21.860 (Electricity, telephone, or natural
gas business, service provider — Franchise fees prohibited — Exceptions), the City may
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not impose a franchise fee or any other fee or charge of whatever nature or description
upon PSE.
4. Cost of Publication: PSE shall bear the entire cost of publication of this ordinance.
SECTION VI. Assignment and Transfer of Franchise
PSE may not assign or transfer this Franchise without the written consent of the City
Council, which consent shall not be unreasonably withheld. Any assignee or transferee shall, at
least thirty (30) calendar days prior to the date of any assignment or transfer, file written notice
of the assignment or transfer with the City, together with its written acceptance of all of the
Franchise terms and conditions. PSE shall have the privilege, without such notice or such written
acceptance, to mortgage its benefits and privileges in and under this Franchise to the trustee for
its bondholders. The Franchise terms and conditions shall be binding upon the Parties' respective
assigns and successors.
SECTION VII. Compliance with Laws- Reservation of Powers and Authority
1. Compliance: In every aspect related to this Franchise, including but not limited to
all Work, PSE shall comply with all applicable Laws, as they exist or may be amended,
whether specifically mentioned in this Franchise or not; provided that, in the event of a
conflict between the terms of this Franchise and any City-enacted Laws, the terms of this
Franchise will control. This Franchise constitutes a valid and enforceable contract
between the Parties and may not be modified or amended except as expressly permitted
in Section XXV.
2. Le�itimate Municipal Interest: As to matters subject to the terms and conditions
of this Franchise, ifthe City determines during the term ofthis Franchise that the assertion
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of a legitimate municipal interest is prohibited by application of federal or state Law,then
as to such matter and such municipal interest and consistent with its legal obligations,
PSE shall cooperate with the City in a good faith effort to address such municipal interest.
In this context, neither Party shall invoke this Franchise as a basis to assert that its
consideration of a given issue is excused by operation of the doctrines of estoppel or
waiver.
3. Reference to Specific Law or Order: Upon written inquiry by the City, PSE shall
provide a specific reference to the federal,state,or local Law or the WUTC order or action
establishing a basis for PSE's actions related to a specific Franchise issue.
4. Tariffs: This Franchise is subject to the provisions of any applicable Tariff now or
hereafter on file with the WUTC or its successor. In the event that any provision of this
Franchise would cause PSE to be out of compliance with any Tariff,the provisions of such
Tariff shall control.
SECTION VIII. Non-exclusive Franchise
1. Non-exclusive: As provided in Subsection 2.4, this Franchise is non-exclusive.
2. City Use of Franchise Area: This Franchise shall not prevent, prohibit, limit or
affect the City's use of the Franchise Area, in a manner consistent with this Franchise; or
the City's jurisdiction over the Franchise Area. The Parties agree that the City reserves
and retains all of its statutory, inherent and other powers and franchise authority, as they
exist or shall exist, and the City shall at all times exercise its retained power in a manner
consistent with the terms and conditions of this Franchise.
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3. Municipal Electric Utilitv: Nothing in this Franchise is intended to modify or impair
the Parties' respective rights and obligations in the event the City decides to acquire,
construct, own, operate and maintain a municipat electric utility.
SECTION IX. Permits, Construction and Restoration
1. Free Passa�e of Traffic: PSE shall at all times maintain its Facilities within the
Franchise Area so as not to unreasonably interfere with the free passage of traffic or the
use and enjoyment of adjoining property. PSE shall at all times post and maintain proper
barricades and comply with all applicable Laws, safety regulations and standards during
such period of construction.
2. Permit Application Required: Except in the event of an emergency, PSE shall first
obtain and comply with all required permits from the City to perform Work on PSE's
Facilities within the Franchise Area in accordance with applicable Laws, subject to
Subsection 7.1. Work within City streets shall be accomplished through boring rather
than open trenching whenever reasonably feasible. If PSE believes boring is not
reasonably feasible, PSE's permit application shall detail why it believes boring is not
reasonably feasible. The City will not unreasonably deny a request to use open trenching
when boring is not reasonably feasible.
3. Facility Placement and Detection: The Parties intend that the specific location of
Facilities within the Franchise Area (and similar facility-related matters of a specific nature
requiring detailed case-by-case analysis) is to be determined in accordance with
applicable Laws (including, without limitation, rights of appeal). PSE shall employ
commercially available means consistent with its standards and operating practices to
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ensure that all underground Facilities installed in the Franchise Area subsequent to the
date of this Franchise (including, without limitation, Facilities later decommissioned by
PSE in accordance with Section XX) are locatable using surface locating technologies
routinely used by PSE and/or its contract locators. The City will notify PSE before digging
in the Franchise Area and PSE will locate its Facilities, all in accordance with applicable
procedures required by Law (e.g. Chapter 19.122 RCW). If PSE fails to locate its
underground Facilities within the Franchise Area as required by this subsection and
applicable Law, and without limiting any other remedies available to the City under
applicable Law, PSE shall evaluate fairly and in good faith, in accordance with applicable
Law, any claim submitted by the City for delay costs incurred by the City as a direct result
of such unmarked Facilities impacting a Public Improvement Project schedule.
4. Lateral Support: Whenever Work on Facilities within the Franchise Area have
caused or contribute to a condition that appears to substantially impair the lateral
support of the Franchise Area,the City may direct PSE, at PSE's sole expense,to take such
actions as are reasonably necessary within the Franchise Area so as not to impair the
lateral support thereof.
5. Limits on Construction: No park, public square, golf course, street rights-of-way
or public place of like nature shall be excavated or damaged by PSE if there is a
substantially equivalent alternative. The determination of there being a substantially
equivalent alternative shall be determined by the City.
6. Bond Requirement: Before undertaking any of the Work authorized by this
Franchise, as a condition precedent to the City's issuance of any permits, PSE shall, upon
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the City's request, furnish a bond executed by PSE and a corporate surety authorized to
operate a surety business in the State of Washington, in a reasonable amount approved
by the Administrator as sufficient to ensure performance of PSE's obligations under this
Franchise with respect to the performance of such Work. In lieu of a separate bond for
routine individual projects involving Work in the Franchise Area, PSE may satisfy the City's
bond requirements by posting a single on-going performance bond in a reasonable
amount approved by the Administrator.
7. Workmanship: All Work done by PSE or at PSE's direction or on its behalf within
the Franchise Area, including all such Work performed by contractors or subcontractors,
shall be considered PSE's Work and shall be undertaken and completed in a workmanlike
manner and in accordance with the descriptions, plans and specifications PSE provided to
the City. PSE's Work shall not permanently or unnecessarily damage or unreasonably
interfere with other franchises, licenses, utilities, drains or other structures within the
Franchise Area, or the Franchise Area, and shall not unreasonably interfere with public
travel or the free passage of vehicle or pedestrian traffic within the Franchise Area, park
uses, and other municipal uses of the Franchise Area. PSE's Work shall comply with all
applicable Laws, subject to and in accordance with Subsection 7.1.
8. Material and Installation Methods: As a condition of receiving the privilege to
work within the Franchise Area, PSE shall assume full responsibility for using materials
and installation methods that are in full compliance with applicable Laws and shatl verify
this submittal of documentation of materials and testing reports when requested by the
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City. All costs for performing on-site testing, such as compaction tests, shall be borne by
PSE.
9. Dama�e Durin�Work: In case of any damage caused by PSE, or by PSE's Facilities,
to the Franchise Area (including but not limited to all City,franchisee, and licensee owned
improvements and structures existing therein) PSE agrees to repair the damage at no cost
to the City. PSE shall, upon discovery of any such damage, immediately notify the City.
The City will inspect the damage and provide PSE a reasonable period of time for
comp�etion of the repair. If the City discovers damage caused by PSE within the Franchise
Area, the City will give PSE prompt notice of the damage and provide PSE a reasonable
period of time to repair the damage. In the event PSE does not make the repair as
required in this section, the City may repair the damage, to its satisfaction, at PSE's sole
expense.
10. Restoration Requirements: Whenever it shall be necessary for PSE, in the exercise
of its rights under this Franchise, to disturb the surface of the Franchise Area, PSE shall
restore the surface of the Franchise Area and any other property within the Franchise
Area which may have been disturbed or damaged by such Work to at least the same
condition as it was in immediately prior to the start of the Work. All such restoration shall
conform to the City's applicable construction specifications,trench restoration standards,
street overlay requirements and applicable Laws in effect at that time, subject to
Subsection 7.1. Restoration shall include all landscaping, irrigation systems and trees
within the Franchise Area to the extent the same are disturbed or damaged by PSE in the
performance of the Work. The City shall have final approval of the condition of the
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Franchise Area after restoration pursuant to applicable Laws, as they exist or may be
amended or superseded, provided that such provisions are not in conflict or inconsistent
with the express terms and conditions of this Franchise.
11. Survev Monuments: All survey monuments which are disturbed or displaced by
PSE in its performance of any Work within the Franchise Area shall be referenced and
restored by PSE, in accordance with WAC 332-120, (Survey Monuments — Removal or
Destruction), as it exists or may be amended, and other applicable Laws.
12. Failure to Restore: If PSE fails to restore the Franchise Area in accordance with
this section, the City shall provide PSE with written notice including a description of
actions the City believes necessary to restore the Franchise Area. If PSE fails to restore
the Franchise Area in accordance with this section within thirty(30)calendar days of PSE's
receipt of the City's notice, the City, or its authorized agent, may restore the Franchise
Area at PSE's sole and complete expense. The privilege granted under this section shall
be in addition to others provided by this Franchise.
SECTION X. Coordination and Shared Construction
1. Coordination: The Parties shall make reasonable efforts to coordinate any work
that either Party may undertake within the Franchise Area to promote the orderty and
expeditious performance and completion of such work, and to minimize any delay or
hindrance to any construction work undertaken by themselves or utilities with the
Franchise Area. PSE and the City shall further each exercise its best efforts to minimize
any delay or hindrance to any construction work either may undertake within the
Franchise Area. Any associated costs caused by any construction delays to the City or to
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any contractor working for the City due to PSE's failure to submit and adhere to PSE's
plans and schedule in relocating or installing PSE facilities shall be the sole responsibility
of PSE. PSE shall, at the City's request, also attend construction meetings pertaining to
performance of work within the Franchise Area and shall designate a contact person to
attend such meetings. PSE's responsibility for performance of all such work is, in all
respects, subject to applicable Laws, in accordance with Subsection 7.1.
2. Joint Use Trenches: If PSE or the City shall cause excavations to be made within
the Franchise Area, the Party causing such excavation to be made shall afford the other,
upon receipt of a written request to do so, an opportunity to use such excavation,
provided that: (a) such joint use shall not unreasonably delay the work of the Party
causing the excavation to be made; and (b) such joint use shall be arranged and
accomplished on terms and conditions satisfactory to both Parties.
3. Joint Use Policies: The City may, during the term of this Franchise, adopt policies
with respect to the Franchise Area which encourage joint use of utility facilities within the
Franchise Area. PSE shall cooperate with the City and explore opportunities for joint use
of utility facilities within the Franchise Area that are consistent with applicable Laws and
prudent utility practices.
4. Repair and Replacement of Citv-Owned Street Li�hts: The City retains the right to
repair or replace City-owned street lights and associated poles located within the
Franchise Area. The City shall provide advance notice to PSE for any such work to be
performed by or for the City in the vicinity of PSE's Facilities. The City shall coordinate
with PSE for any work which PSE may elect to perform involving PSE's Facilities in
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conjunction with the City's street lighting work, but shall not be obligated to pay any costs
to PSE for work PSE elects to perform involving PSE Facilities located within the Franchise
Area.
5. Installation of New City-Owned Street Li�hts: The City retains the right to install
new City-owned street lights within the Franchise Area. The City shall provide advanced
notice to PSE of such new installations and shall coordinate with PSE on the design and
installation of such new City-owned street lights to provide for required clearance from
existing PSE Facilities then located within the Franchise Area. In the event new
City-owned street lights cannot be designed and installed within the Franchise Area to
provide required clearance from existing PSE Facilities then located within the Franchise
Area, the City shall so notify PSE and either (a) provide PSE reasonable information and
opportunity to allow PSE to adjust, modify or relocate such Facilities to provide required
clearance prior to installation of the new City-owned street lights, or (b) enter into a
mutually acceptable arrangement with PSE to enable PSE to install the new City-owned
street lights for the City in a manner to allows for the required clearance.
6. Groundin� Verification Testin� for PSE-Owned Street Li�ht Systems: PSE will
periodically test all PSE-owned metal street light poles and associated metal hand hole
covers located in the Franchise Area for proper grounding in accordance with all
applicable Laws and PSE's then-current engineering test standards and procedures.
SECTION XI. Hazardous Materials
1. Written Approval Required: In maintaining its Facilities within the Franchise Area
(including, without limitation, vegetation management activities), PSE shall not apply any
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pesticide, herbicide, or other Hazardous Substance within the Franchise Area without
prior written approval of the City. The City will not unreasonably withhold its approval,
but such approval must be in conformance to the Aquifer Protection regulations of the
City. If PSE shall first obtain the City's approval to apply a specific product in accordance
with a defined procedure on an ongoing basis throughout the Franchise Area, it shall not
thereafter be necessary for PSE to obtain the City's approval on each occasion such
product is applied in accordance with such procedure. PSE shall notify the City of any
accident by PSE involving PSE's use of Hazardous Substances within the Franchise Area.
2. Release of Hazardous Substance bv PSE: Upon a release of any Hazardous
Substance caused by PSE or its contractors, or from PSE's Facilities, within the Franchise
Area, PSE shall notify the City within twenty-four(24) hours after PSE discovers or is made
aware of the release. PSE shall act promptly to remove (if possible), dispose, or otherwise
handle such Hazardous Substance, as necessary, in accordance with applicable Laws. PSE
shall be solely responsible for the costs of removal, disposal and/or handling of any
Hazardous Substance that is released by PSE or from PSE's Facilities and any associated
environmental mitigation requirements imposed by operation of applicable Laws. If
Hazardous Substance removal requires removal of fill, landscaping, or other functional
material, PSE shall provide substitute nonhazardous substances to replace the removed
material, as necessary to restore the premises the same or better condition that existed
prior to the Hazardous Substance release. PSE shall obtain all required permits and
proceed with the removal operations at its own cost.
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3. Discovery of Hazardous Substance Not Caused bv PSE: If, in the exercise of its
rights under this Franchise, PSE discovers a release of any Hazardous Substance within
the Franchise Area and such release was not from its Facilities, or caused by PSE or its
contractors, PSE sha�l notify the City within twenty-four (24) hours of its discovery. The
City will investigate the potential Hazardous Substance release and take all necessary
measures to comply with applicable laws, which may include directing other responsible
parties to remove and mitigate the Hazardous Substance release. If PSE's operations
within the Franchise Area are delayed or its services disrupted by the discovery,
investigation, and removal operations, PSE shall have no recourse against the City for such
resulting delays or service disruptions; provided that, for clarity, this Franchise does not
require PSE to remediate a release of Hazardous Substances found to have been caused
by the City or any third party not acting for or on behalf of PSE.
SECTION XII. Emergency Work- Permit Waiver
1. Prompt Response Required: In the event of any emergency involving damaged
PSE Facilities located in or under the Franchise Area, or if PSE's Facilities within the
Franchise Area are in a condition as to immediately endanger the property, life, health or
safety of any individual, PSE shall, upon receipt of notification from the City of the
existence of such condition, immediately take those actions as are necessary to correct
the dangerous condition.
2. Permit Deferred: If and to the extent reasonable actions on PSE's part are
necessary to respond to an emergency situation involving its Facilities within the
Franchise Area, and such action would otherwise require the issuance by the City of an
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ORDINANCE N0. 5834
authorizing permit or approval, the City hereby waives the requirement that PSE obtain
any such permit or approval as a prerequisite to undertaking such activity; provided,
however, PSE shall subsequently apply for any such required permit or approval within
ten (10) business days from and after the date of the commencement of such activity
otherwise requiring such permit or approval. Further, PSE shall inform the City's
permitting authority of the nature, location, and extent of the emergency, and the work
to be performed, prior to commencing the work if such notification is practical, or where
such prior notification is not practical, PSE shall notify the City's permitting authority on
the next business day. To the extent the emergency or PSE's response to the emergency
materially interrupts the flow of vehicle or pedestrian traffic (e.g. necessitates temporary
traffic lane or sidewalk closures or detours), or otherwise presents a public safety hazard,
PSE shall notify police or fire services by calling 911 or an applicable dispatch number as
may be provided in writing by the City. PSE shall cooperate with the City and its
emergency responders when performing emergency work in the Franchise Area, as
necessary to protect public safety and welfare.
3. Public Service Obli�ations: Nothing in this section is intended, nor shall it be
construed, as a hindrance to PSE's ability to take such actions as it deems necessary to
discharge its public service obligations in accordance with the Laws of the State of
Washington. Nothing in this section is intended, nor shall it be construed, as preventing
the City from recovering from PSE, if otherwise so entitled in accordance with applicable
Law, any extraordinary costs in responding to an emergency situation involving PSE's
Facilities within the Franchise Area.
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ORDINANCE N0. 5834
4. Emer�encv Contacts: PSE's emergency pians and procedures shall designate PSE's
responsible local emergency response officials and a direct twenty-four (24) hour
emergency contact number for control center operator.
SECTtON XIII. Planning and Records of Installation
1. Future Construction Plans: Upon the request of either Party, but not more often
than annually unless otherwise agreed upon by the Parties, the Parties will meet to
discuss and coordinate regarding future construction activities then being planned by
either Party within the Franchise Area, including potential Public Improvement Projects
and potential improvements, relocations and conversions to PSE's Facilities within the
Franchise Area; provided, however, any such discussions and coordination shall be for
informational purposes only and shall not obligate either Party to undertake any specific
improvements within the Franchise Area, nor shall such discussions or coordination be
construed as a proposal to undertake any specific improvements within the Franchise
Area.
2. Plannin� for Public Improvement Projects: The City will provide PSE with copies
of its Transportation Improvement Plan and Capital Improvement Plan following their
adoption by the City Council. For Public Improvement Projects planned to commence
within two (2) years of the plans' adoption, the City will identify the Public Improvement
Projects that it believes will require coordination with PSE. Within sixty(60)calendar days
of PSE's receipt of the City Council adopted plans and City identified Public Improvement
Projects requiring coordination, PSE will notify the City if PSE betieves there are any
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ORDINANCE N0. 5834
additional planned Public Improvement Projects that require coordination between the
Parties.
3. Coordination on Public Improvement Proiects: For any Public Improvement
Project that either Party has identified as requiring coordination, the City will notify PSE
when it commences design work for the Public Improvement Project and identify a City
representative to coordinate the Public Improvement Project with PSE. Within twenty
(20) calendar days of receiving such notification, PSE shall designate a representative to
coordinate the Public Improvement Project with the City. Throughout the design and
project implementation, the project coordinators shall cooperate and share information
necessary to efficiently complete the Public Improvement Project. This information may
include, but is not limited to, project contacts, project details, applicable project
schedules, identification of contractors, location of affected existing and planned
Facilities, project status, and detailed and dimensioned plan specifications.
4. Coordinatin� Plans: If PSE has non-emergency plans to perform work that will
require disturbing pavement or sidewalks in the same areas the City has plans to
resurface, overlay, or reconstruct roads or sidewalks, PSE will coordinate with the City to
attempt to schedule its work to occur prior to the City's planned Public Improvement
Project.
5. Records: PSE shall at all times keep full and complete plans,specifications, profiles
and records in accordance with its standard business practices ("Facility Records")
showing the location and size of all its Facilities within the Franchise Area, and such
Facility Records shall be kept current by PSE to show thereon the locations of all additional
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ORDINANCE NO. 5834
Facilities hereinafter installed by PSE within the Franchise Area. PSE shall provide the City,
upon the City's request, as required for the City's effective management of the right-of-
way, copies of available Facility Records in use by PSE showing the location of its Facilities
at specific locations within the Franchise Area. As to any Facility Records so provided, PSE
does not warrant the accuracy thereof and, to the extent the location of Facilities are
shown, such Facilities are shown in their approximate location. These Facility Records
shall be subject to inspection at all reasonable times by governmental officials and agents
upon reasonable advance notice to PSE.
6. Desi�n Locates: Upon the City's request, in connection with the design of any
Public Improvement Project, PSE shall verify the location of its underground Facilities
within the Franchise Area by excavating(e.g., pot holing) at no expense to the City. In the
event PSE performs such excavation, the City shall not require any restoration of the
disturbed area in excess of restoration to the same condition as existed immediately prior
to the excavation.
7. Utility Locates: Notwithstanding the foregoing, nothing in this section is intended
(nor shall be construed)to relieve either Party oftheir respective obligations arising under
applicable Laws with respect to determining the location of utility facilities.
SECTION XIV. Undergrounding of Facilities
1. Under�roundin� Policv and Tariffs: PSE acknowledges that the City desires to
promote a policy of undergrounding of Facilities within the Franchise Area. The City
acknowledges that PSE provides electrical service on a non-preferential basis subject to
and in accordance with applicable Tariffs on file with the WUTC. Subject to and in
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ORDINANCE NO. 5834
accordance with such Tariffs, PSE will cooperate and participate with the City in the
formulation of policy and development of an underground management plan with
respect to PSE aerial Facilities within the City.
2. Under�roundin� Reauired for New Facilities: All new Facilities, of 50 kV or less,
installed within the Franchise Area during the term of this Franchise shall be located
underground; provided that installation of cabinet enclosed switches, transformers and
similar equipment will be permitted and installed pursuant to the provisions of any
applicable Laws (subject to Subsection 7.1) and specifically subject to and in accordance
with applicable Tariffs on file with the WUTC.
3. Tariffs: If, during the term of this Franchise, the City shall direct PSE to
underground existing Facilities within the City, such undergrounding shall be arranged
and accomplished subject to and in accordance with applicable Tariffs on file with the
WUTC.
SECTION XV. Moving Buildings within the Franchise Area
1. PSE Approval Required: If any person or entity obtains permission from the City
to use the Franchise Area for moving or removal of any building or other object, the City
shall, prior to granting such permission, require such person or entity to make any
necessary arrangements with PSE for the temporary adjustment of PSE's wires to
accommodate the moving or removal of such building or other object. Such necessary
arrangements with PSE shall be made, to PSE's satisfaction, not less than fourteen (14)
calendar days prior to the moving or removal of said building or other object.
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ORDINANCE NO. 5834
2. Approval Criteria: In such event, PSE shall at the expense of the person or entity
desiring to move or remove such building or other object, adjust any of its wires which
may obstruct the moving or removal of such building or other object, provided that:
a. The moving or removal of such building or other object which necessitates
the adjustment of wires shall be done at a reasonable time and in a reasonable manner
so as not to unreasonably interfere with PSE's business.
b. To the extent practical, where more than one route is available for the
moving or removal of such building or other object, such building or other object shall be
moved or removed along the route which causes the least interference with PSE's
business.
c. The person or entity obtaining such permission from the City to move or
remove such building or other object shall be required to indemnify and save PSE
harmless from any and all claims and demands made against it on account of injury or
damage to the person or property of another arising out of or in conjunction with the
moving or removal of such building or other object, to the extent such injury or damage
is caused by the negligence of the person or entity moving or removing such building or
other object or the negligence of the agents, servants or employees of the person or
entity moving or removing such building or other object.
SECTION XVI. City Use of PSE Poles
1. Conditions for Use: During the term of this Franchise, and with respect to poles
which are Facilities and which are (a) wholly owned by PSE and (b) within the Franchise
Area, the City, subject to PSE's prior written consent, which shall not be unreasonably
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ORDINANCE NO. 5834
withheld, may install and maintain City-owned overhead wires upon such poles for police,
fire, traffic control and other noncommercial municipal communications purposes. The
foregoing rights of the City to install and maintain such wires are further subject to the
following:
a. The City shall do the installation and maintenance at its sole risk and
expense, in accordance with all applicable Laws, and subject to such reasonable
requirements as PSE may specify from time to time (including, without limitation,
requirements accommodating PSE's Facilities or the facilities of other parties having the
privilege to use PSE's Facilities);
b. PSE shall have no obligation arising under the indemnity and insurance
provisions of this Franchise as to any circumstances directly or indirectly caused by or
related to such City-owned wires or the installation or maintenance of those wires; and
c. PSE shall not charge the City a fee or charge for the use of such poles in
accordance with this section as a means of deriving revenue therefrom; provided,
however,that PSE shall bear any cost or expense in connection with the City's instatlation
and maintenance of wires.
2. Postin� of Citv Si�ns: Subject to reasonable rules and regulations prescribed by
PSE and subject to RCW 70.54.090 or any other applicable Laws, the City shall have the
right to post city signs on PSE's utility poles within the Franchise Area as reviewed and
approved by PSE.
3. Administrative Fee: PSE may charge the City an administrative fee for the
purposes of reviewing such joint facility installations.
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ORDINANCE N0. 5834
SECTION XVII. Vegetation Management Plan
1. Balance of Concerns: The Parties recognize that any appropriate vegetation
management plan should adequately balance safety, reliability, vegetation health and
community aesthetic concerns and the clearance between vegetation and PSE's Facilities
necessary for public safety and operational reliability.
2. Coordination Required: PSE will coordinate, in advance, its vegetation
management activities within and/or adjacent to the Franchise Area with the City,
including but not limited to its Transportation, Fire and Emergency Services, and
Community Services Departments. On an annual basis, PSE will give the City a proposed
vegetation management plan. Upon the City's written request, but no more often than
quarterly, PSE will meet with the City to coordinate the implementation of the plan,
provided however that such commitment to coordinate with the City shall not limit PSE's
privilege under this Franchise or duty under applicable Laws to remove or trim vegetation
which, due to proximity to PSE's Facilities, poses an imminent risk to public safety.
3. Use of Standard Practices: Pruning and removal of vegetation within and/or
adjacent to the Franchise Area will be performed using all associated American National
Standard Institute (ANSI) standards and best management practices accepted by the
International Society of Arboriculture (ISA). At a minimum, pruning and removing shall
follow the most recent version of ANSI A300 (Part 7) publication,the most recent version
of the ISA Best Management Practices Utility Pruning of Trees publication and applicable
City guidelines and regulations.
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ORDINANCE NO. 5834
4. Tree Trimmin� and Removal: When exercising its rights and duties under
applicable Laws to remove ortrim vegetation, PSE shall cooperate and work together with
the City to minimize damage to healthy trees in or adjacent to the Franchise Area. If PSE
determines it must remove or cut a City tree in a way that removes 40% or more of the
total height of the tree, it shall notify the City Forester, or other designee, at least 2
business days in advance of the work and apply for a tree cutting permit if such permit is
required by the Renton Municipal Code. If no permit is required by the Renton Municipal
Code, PSE shall seek direction from the City Forester, or designee, as to whether it can
top the tree or whether it will be required to remove and replace the tree at that location
or an alternative location. The City shall not unreasonably deny a permit or request to
remove, top or cut a tree that poses a risk to PSE's facilities.
5. Plant Selection: PSE will coordinate with City urban forestry staff the identification
of plant species appropriate for a location in proximity to PSE Facilities within the
Franchise Area. If tree removal is performed by PSE or at PSE's request, PSE shall fund
the cost of any City-required tree replacement that is appropriately sized to minimize risk
of future interference with PSE facilities.
6. Debris Removal: PSE shall be responsible for removal of any debris generated
during its vegetation management activities within the Franchise Area. The City may, at
its sole discretion, remove any such debris within the Franchise Area that is not promptly
removed by PSE and bill PSE for the cost of said removal and disposal; provided, the City
shall first provide PSE notice and a reasonable period of time to remove the debris.
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ORDINANCE NO. 5834
7. Future Laws: Subject to Section 7.1 the City reserves the right to adopt by
ordinance or resolution specific right-of-way vegetation management standards which
may include, but not be limited to, alternate standard practices, identification of
permitted or prohibited plant species, and permitting and procedural requirements.
8. Emer�ency Response: The forgoing notwithstanding, PSE shall at all times have
the right to remove vegetation in the Franchise Area that has caused a system disruption
or failure, or is in imminent risk of doing so, without delay for prior notice.
SECTION XVIII. Emergency Management Coordination
Annually, upon the request of the City, PSE will meet with the City's emergency
management representatives to coordinate emergency operations plans and update contact
information and, at least once a year, at the request of the City, PSE personnel will actively
participate with appropriate City representatives in training, exercise, and planning activities
related to emergency preparedness, response, recovery and mitigation. In connection with and
as part of any such meeting to coordinate emergency operations, the Parties wilt, as and to the
extent reasonably requested by the City, (a) review and discuss PSE's annual maintenance,safety
and inspection plans and records relating to PSE's gas Facilities located within the Franchise Area,
(b) review and discuss any reports or notices filed with the WUTC or the Federal Office of Pipeline
Safety relating to the integrity or safety of PSE's gas Facilities located within the Franchise Area,
and (c) review and discuss any application by PSE for a waiver of any state or federal gas safety
rule applicable to the integrity or safety of PSE's gas Facilities located within the Franchise Area.
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ORDINANCE N0. 5834
SECTION XIX. Relocation of PSE Facilities
1. Relocation Required: The City shall have prior and superior right to the use of the
Franchise Area for the installation and maintenance of its utilities and capital
improvement projects, and should any conflict arise with City facilities, PSE shall, at no
cost to the City, conform to the utilities and capital improvement projects of the City.
Wheneverthe City undertakes(or causes to be undertaken)the construction of any Public
Improvement Project within the Franchise Area, and such Public Improvement Project
necessitates the relocation of PSE's then existing Facilities within the Franchise Area, the
City shall:
a. Provide PSE, within a reasonable time prior to the City's commencement
of the Public Improvement Project, written notice requesting such relocation; and
b. Provide PSE with copies of pertinent portions of the City's plans and
specifications for such Public Improvement Project.
2. PSE Relocation Plans: Unless other timing is mutually agreed upon by the Parties,
PSE shall submit a complete right-of-way permit application with reasonably detailed
relocation plans for the Public Improvement Project within sixty (60) calendar days after
PSE's receipt of the City's notice and plans and specifications under Subsection 19.1(a)
and (b). PSE shall relocate its Facilities within the Franchise Area at no charge to the City.
3. Timin� of Relocation: The City shall include in its notice and plans and
specifications submitted to PSE under Subsection 19.1 the City's proposed schedule for
PSE's completion of its relocation work for the Public Improvement Project, and PSE shall
include in its relocation plans submitted under Subsection 19.2 PSE's proposed schedule
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ORDINANCE NO. 5834
for completion of PSE's relocation work for the Public Improvement Project. The Parties
will thereafter mutually agree in writing upon a final schedule for such relocation, with
each Party (a) giving due and good faith consideration to the other Party's proposed
schedule and project needs, (b) acting reasonably and (c) not unreasonably withholding
its agreement in establishing the final schedule. For the avoidance of doubt, it shall not
be unreasonable for PSE to withhold its agreement to the final schedule based on such
factors as PSE's inability to obtain materials in a timely manner, PSE's relocation work
being dependent on the performance of other work by the City or any third party, or any
other cause beyond PSE's reasonable control. PSE shall then complete all relocation work
for the Public Improvement Project within the final schedule agreed upon by the Parties.
PSE shall be solely responsible for the reasonable, out-of-pocket costs incurred by the City
for de►ays in a Public Improvement Project to the extent the delay is caused by or arises
out of(1) PSE's failure to comply with the agreed final schedule for the relocation (other
than as a result of causes or conditions beyond PSE's reasonable control, including,
without limitation, the acts or omissions of the City or any third party), or (2) PSE
unreasonably withholding its agreement in establishing the final schedule in breach of its
obligation under subsection (c) above. Such out-of-pocket costs may include, but are not
limited to, payment to the City's contractors and/or consultants for increased costs and
associated court costs, interest, and attorneys' fees incurred by the City to the extent
directly attributable to such PSE-caused delay in the Public Improvement Project.
4. City Performance of Relocation Work: If the Parties' agree that elements of
relocation work involving PSE's Facilities within the Franchise Area would be most
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ORDINANCE N0. 5834
efficiently performed by the City or its contractors as part of the City's work on the
underlying Public Improvement Project, the Parties may enter into a separate written
agreement that details the elements of relocation work to be performed by the City
involving PSE's Facilities. Such agreement shall require PSE to be responsible for all direct
design and construction costs incurred as a result of its Facilities and may require PSE to
be responsible for PSE's pro-rata share of all reasonable indirect costs including, but not
limited to, construction management and inspection,traffic control, mobilization,erosion
and sedimentation control, trenching, backfill, and restoration. Neither Party will be
obligated to enter into any such agreement for the City's performance of relocation work
involving PSE's Facilities. In the absence of an agreement by which the City will relocate
PSE facilities, PSE remains fully responsible for performing all relocation work itself.
5. Third Partv Construction: Whenever any person or entity, other than the City,
requires the relocation of PSE's Facilities to accommodate the work of such person or
entity within the Franchise Area; or, the City requires any person or entity to undertake
work (other than work undertaken at the City's cost and expense) within the Franchise
Area and such work requires the relocation of PSE's Facilities within the Franchise Area,
PSE shall have the right as a condition of any such relocation to require such person or
entity to make payment to PSE, at a time and upon terms acceptable to PSE, for any and
all costs and expenses incurred by PSE in the relocation of PSE's Facilities.
6. Third Partv Construction of Citv Identified Proiect: Any condition or requirement
imposed by the City upon any person or entity (including, without limitation, any
condition or requirement imposed pursuant to any contract or in conjunction with
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ORDINANCE NO. 5834
approvals or permits obtained pursuant to any zoning, land use, construction or other
development regulation) which requires the relocation of PSE's Facilities within the
Franchise Area shall invoke the provisions of Subsection 19.5 above; provided, however,
(a) in the event the City reasonably determines and notifies PSE that the primary purpose
of imposing such condition or requirement upon such person or entity is to cause the
construction of a Public Improvement Project within a segment of the Franchise Area on
the City's behalf and (b) such Public Improvement Project is reflected in the City's
Transportation Improvement Plan or Capital Improvement Plan,then onlythose costs and
expenses incurred by PSE in constructing and connecting new Facilities with PSE's other
Facilities shall be paid to PSE by such person or entity, and PSE shall otherwise relocate
its Facilities within such segment of the Franchise Area in accordance with
Subsections 19.1 through 19.3, above.
7. Alternatives: As to any relocation of PSE's Facilities whereby the cost and expense
is to be borne by PSE, PSE may, after receipt of written notice requesting such relocation,
submit in writing to the City alternatives to relocation of its Facilities. Upon the City's
receipt from PSE of such written alternatives,the City shall evaluate such alternatives and
shall advise PSE in writing if one or more of such alternatives are suitable to accommodate
the work which would otherwise necessitate relocation of PSE's Facilities. In evaluating
such alternatives, the City shall give each alternative proposed by PSE fair consideration
with due regard to all facts and circumstances which bear upon the practicality of
relocation and alternatives to relocation. If the City determines that such alternatives are
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ORDINANCE N0. 5834
not appropriate, PSE shall relocate its Facilities as provided in Subsections 19.1 through
19.3, above.
8. Non-Franchise Area: Nothing in this Section XIX or otherwise shall require PSE to
bear any cost or expense in connection with the location or relocation of any Facilities
existing under benefit of easement or other rights not arising under this Franchise,
regardless of whether such easement or other rights are on public or private property and
regardless of whether this Franchise coexists with such easement or other rights.
SECTION XX. Decommissioning of PSE's Facilities
1. Notification: PSE shall notify the City when it permanently discontinues use of and
decommissions any of its Facilities within the Franchise Area. Such notification shafl occur
within thirty (30) calendar days of the date PSE decommissions the Facilities.
2. Miti�ation Plan for Permanently Decommissioned Facilities: PSE's notification
under Subsection 20.1 shall include a mitigation plan for either removing or leaving in
place the decommissioned Facilities. The mitigation plan shall address how and when the
Facilities will be removed and shall include any mitigation measures PSE proposes to
address impacts ofthe decommissioned Facilities to the Franchise Area. Unless otherwise
approved bythe City, removal and mitigation should be accomplished within one hundred
and eighty (180) calendar days after the Facilities are permanently decommissioned.
3. City Review of Proposed Plan: Within thirty (30) calendar days of receiving a plan
submitted by PSE pursuant to this section,the City will review the plan and either approve
the plan or require changes and resubmittal. The City will not unreasonably withhotd
approval of PSE's proposed plan, but may require changes if it determines, in its
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ORDINANCE NO. 5834
reasonable discretion, that the plan fails to adequately mitigate the impacts of PSE's
permanently decommissioned Facilities. If PSE's plan proposes leaving permanently
decommissioned Facilities in place and the City determines, after consultation with PSE,
that the impacts of leaving the Facilities in place cannot be adequately mitigated to the
City's reasonable satisfaction, the City may require removal of the Facilities. If the City
approves leaving permanently decommissioned Facilities in place, it may condition such
approval upon PSE's agreement to remove the Facilities at a later time, such as in
conjunction with a subsequent project that includes excavation in the area. Following the
City's approval of a mitigation plan, PSE shall promptly and in good faith implement the
plan and obtain all required permits for its work in the Franchise Area.
4. Citv Costs: If the Parties fail to agree upon a plan, PSE fails to comply with an
approved plan, or circumstances require City action prior to approval of a plan, the City
may, but is not required to, take such steps as it deems necessary to remove and/or
mitigate for the impacts of the permanently decommissioned Facilities. Any costs
incurred by the City as a result of PSE's failure to comply with its obligations under this
Section XX with respect to permanently decommissioned Facilities shall be reimbursed by
PSE within thirty (30) calendar days of the City invoicing PSE for such costs.
5. Survival of Provisions: The Parties expressly agree that the provisions of this
section shall survive the termination, expiration, or revocation of this Franchise.
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ORDINANCE N0. 5834
SECTION XXI. Rights and Remedies
1. Reservation of Ri�hts: A Party's failure to exercise a particular remedy at any time
shall not waive such Party's right to terminate, assess penalties, or assert any equitable
or legal remedy for any future breach or default by the other Party.
2. Liability and Obli�ation: Termination of this Franchise shall not release either
Party from any liability or obligation with respect to any matter occurring prior to such
termination.
3. Iniunctive Relief: The Parties acknowledge that the covenants set forth in this
Franchise are essential to this Franchise, and, but for the mutual agreements of the
Parties to comply with such covenants, the Parties would not have entered into this
Franchise. The Parties further acknowledge that they may not have an adequate remedy
at law if the other Party violates such covenant. Therefore, in addition to any other rights
they may have, the Parties shall have the right to seek in any court of competent
jurisdiction injunctive relief to restrain any breach or threatened breach, or to specifically
enforce any of the Franchise covenants should the other Party fail to perform them.
SECTION XXII. Dispute Resolution
1. Notice of Default: If there is any dispute or alleged default as to performance
under this Franchise,the City shall notify PSE in writing, stating with reasonable specificity
the nature of the alleged default. Within seven (7) calendar days of its receipt of such
notice, PSE shall provide written response to the City acknowledging receipt of such
notice and stating PSE's response. PSE has thirty (30) calendar days ("cure period") from
the date of the notice's mailing to:
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ORDINANCE N0. 5834
a. Respond to the City, contesting the City's assertion(s) as to the dispute or
any alleged default and requesting a meeting in accordance with Subsection 22.2, or:
b. Resolve the dispute or cure the alleged default, or;
c. Notify the City if PSE cannot resolve the dispute or cure the alleged default
within thirty (30) calendar days, due to the nature of the dispute or alleged default.
Notwithstanding such notice, PSE shall promptly take all reasonable steps to begin to
resolve the dispute or cure the alleged default and notify the City in writing and in detail
as to the actions that will be taken by PSE and the projected completion date. In such
case, the City may set a meeting in accordance with Subsection 22.2.
2. Meetin�: If any dispute is not resolved or any alleged default is not cured or if a
Subsection 22.1 meeting is requested, the City shall promptly schedule a meeting
between the Parties to discuss the dispute or alleged default. The City shall notify PSE of
the meeting in writing and the meeting shall take ptace not less than ten (10) calendar
days after PSE's receipt of notice ofthe meeting. Each Party shall appoint a representative
who shall attend the meeting, represent their Party's interests, and who shall exercise
good faith to resolve the dispute or to reach an agreement on any alleged default and/or
any corrective action to be taken. Any dispute (including any dispute concerning the
existence of or any corrective action to be taken to cure any alleged default) that is not
resolved within ten (10) calendar days following the conclusion of the meeting shall be
referred by the Parties' representatives in writing to the Parties' senior management for
resolution. If senior management is unable to resolve the dispute within twenty (20)
calendar days of such referral (or such other period as the Parties may agree upon), each
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ORDINANCE N0. 5834
Party may pursue resolution of the dispute through Section XXIII, Arbitration, of this
Franchise. All negotiations pursuant to these procedures for the resolution of disputes
shall be confidential and shall be treated as compromise and settlement negotiations for
purposes of the state and federal rules of evidence.
3. Additional Resolution Options: If, at the conclusion of the steps provided for in
Subsections 22.1 and 22.2 above, the City and PSE are unable to settle the dispute or
agree upon the existence of a default or the corrective action to be taken to cure any
alleged default,the City or PSE (as PSE may have authority to do so) may:
a. Take any enforcement or corrective action provided for by Law, including
City code; provided such action does not conflict with this Franchise's provisions, and/or;
b. Demand arbitration, pursuant to Section XXIII below, for disputes arising
out of or related to Sections III, Rights and Privileges Conveyed (or such other sections
with respect to the existence of conflicts or inconsistencies with the express terms and
conditions of this Franchise and any applicable Laws); XIII, Planning and Records of
Installation; XIV, Undergrounding of Facilities (except as preempted by WUTC authority);
XVI, City Use of PSE Poles; XVII, Vegetation Management Plan; XVIII, Emergency
Management Coordination; and XIX, Relocation of PSE Facilities (excluding project delay
claims exceeding thirty thousand dollars ($30,000)) of this Franchise (the "Arbitration
Claims"), and/or;
c. By ordinance, declare an immediate forfeiture of this Franchise for a
breach or default of any material, non-Arbitration Claims,obligations under this Franchise
and/or;
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ORDINANCE N0. 5834
d. Take any action to which it is entitled underthis Franchise or any applicable
Laws.
4. Continuation of Obli�ations: Unless otherwise agreed by the City and PSE in
writing,the City and PSE shall, continue to perform their respective obligations under this
Franchise during the pendency of any dispute.
SECTION XXIII. Arbitration
1. Rules and Procedures: The Parties agree that any dispute, controversy, or claim
arising out of or relating to Arbitration Claims, shall be referred for resolution to the
American Arbitration Association in accordance with the rules and procedures in force at
the time of the submission of a request for arbitration.
2. Discoverv: The arbitrators shall allow appropriate discovery to facilitate a fair,
speedy and cost-effective resolution of the dispute(s). The arbitrators shatl reference the
Washington State Rules of Civil Procedure then in effect in setting the scope and timing
of discovery. The Washington State Rules of Evidence shall apply. The arbitrators may
enter a default decision against any Party who fails to participate in the arbitration
proceedings.
3. Compensatorv Dama�es: The arbitrators may award compensatory damages,
including consequential damages. Such damages may include, but shall not be limited to:
all costs and expenses of materials, equipment, supplies, utilities, consumables, goods
and other items; all costs and expenses of any staff; all costs and expenses of any labor
(including, but not limited to, labor of any contractors and/or subcontractors); all pre-
arbitration costs and expenses of consultants, attorneys, accountants, professional and
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ORDINANCE NO. 5834
other services; and all taxes, insurance, interest expenses, overhead and general
administrative costs and expenses, and other costs and expenses of any kind incurred in
connection with the dispute. The arbitrator may award equitable relief in those
circumstances where monetary damages would be inadequate.
4. Award: Any award by the arbitrators shall be accompanied by a written opinion
setting forth the findings of fact and conclusions of law relied upon in reaching the
decision. The award rendered by the arbitrators shall be final, binding and non-
appealable, and judgment upon such award may be entered by any court of competent
jurisdiction.
5. Each Partv's Costs: Except as provided in Subsection 23.7 below, each Party shall
pay the fees of its own attorneys, expenses of witnesses, and all other expenses and costs
in connection with the presentation of such Party's case including,without limitation,the
cost of any records, transcripts or other things used by the Parties for the arbitration,
copies of any documents used in evidence, certified copies of any court, property or city
documents or records that are placed into evidence by a Party.
6. Arbitration Costs: Except as provided in Subsection 23.7 below, the remaining
costs of the arbitration, including without limitation, fees of the arbitrators, costs of
records or transcripts prepared for the arbitrator's use in the arbitration, costs of
producing the arbitrator's decision and administrative fees shatl be borne equally by the
Parties.
7. Costs for Multiple Arbitrations: Notwithstanding the foregoing Subsections 23.5
and 23.6, in the event either Party is found during the term of this Franchise to be the
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ORDINANCE N0. 5834
prevailing party in any two (2) arbitration proceedings brought by such Party pursuant to
this Section XXIII,or under any memorandum of understanding provided for in Subsection
19.3 of this Franchise or any other memorandum of understanding between the Parties,
then such Party shall be entitled to recover all reasonably incurred costs, fees and
expenses, including attorney fees, for any subsequent arbitration brought by them in
which they are found to be the prevailing party.
8. Transcript Costs: In the event a Party makes a copy of an arbitration proceeding
transcript for its use in writing a post-hearing brief, or an arbitration decision copy to
append to a lawsuit to reduce the award to judgment, etc., then that Party shall bear the
cost, except to the extent such cost might be allowed by a court as court costs.
SECTION XXIV. Alternative Remedies
No provision of this Franchise shall be deemed to bar the right of the City or PSE to seek
or obtain judicial relief from a violation of any Franchise provision or any rule, regulation,
requirement or directive promulgated for non-Arbitration Claims. Neither the existence of other
Franchise remedies nor the use of such remedies shall bar or limit the right of the City or PSE to
recover monetary damages for violations by the other Party, or to seek and obtain judicial
enforcement of the other Party's obligations by means of specific performance, injunctive relief
or mandate, or any other remedy at law or in equity.
SECTION XXV. Amendments to Franchise
This Franchise may only be amended by written instrument, signed by the Parties,
specifically stating that it is an amendment to this Franchise and is approved and executed in
accordance with State of Washington laws. Without limiting the generality of the foregoing, this
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ORDINANCE NO. 5834
Franchise shall govern and supersede and shall not be altered, limited or otherwise amended by
any permit, approval, license, agreement or other document required by or obtained from the
City in conjunction with PSE's exercise or failure to exercise any and all rights, benefits, privileges,
obligations or duties in and under this Franchise, unless such permit, approval, license,
agreement or other document specifically:
a. References this Franchise; and
b. States that it supersedes this Franchise to the extent it contains terms and
conditions which alter, limit, supplement or otherwise amend the terms and conditions
of this Franchise.
c. In the event of any conflict or inconsistency between the provisions of this
Franchise and the provisions of any such permit, approval, license, agreement or other
document, except as expressly required by federal or state Laws and/or superseded by
such permit, approval, license, agreement or other document in the manner specified
above in this Section XXV, the Franchise provisions shall control.
SECTION XXVI. Indemnification
1. C�: In Sections XXVI and XXVII, "City" means the City of Renton, and its elected
officials, agents, employees, officers, representatives, consultants (of any level), and
volunteers acting for or on behalf of the City in their authorized capacity.
2. Indemnification bv PSE: PSE shall defend, hold harmless, and indemnify the City
from any and all third party claims, demands, suits, liability, damages, costs, or expenses,
including but not limited to attorneys' fees, to the extent the same are caused by or arise
out of(a)the negligence or willful misconduct of PSE or its agents, servants or employees
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ORDINANCE NO. 5834
in the exercise of its rights granted under this Franchise, (b) the breach by PSE of any of
its obligations under this Franchise, or (c) a violation of Laws or an improper release of
Hazardous Substances upon the Franchise Area to the extent the same is caused by PSE's
Facilities or PSE in the exercise of its rights granted under this Franchise. PSE's duty to
defend, hold harmless, and indemnify the City shall not apply to the extent the claims,
demands, suits, liability, costs, or expenses are caused by or arise out of the City's
negligence or willful misconduct.
3. Title 51 Waiver: Solely to the extent required to enforce the indemnification
provided in this Section XXVI, PSE hereby waives immunity under Title 51 RCW in any
cases involving the City; provided, however, the foregoing waiver shall not in any way
preclude PSE from raising such immunity as a defense against any claim brought directly
against PSE by any of its employees. The obligations of PSE under this section have been
mutually negotiated by the Parties, and PSE acknowledges that the City would not enter
into this Franchise without the foregoing limited waiver of PSE's immunity.
4. Real Estate Indemnity: To the extent a court of competentjurisdiction determines
that this Franchise is subject to RCW 4.24.115, (Validity of agreement to indemnify against
liability for negligence relative to construction, alteration, improvement, etc.), as it exists
or may be amended, then, in the event of liability for damages arising out of bodily injury
to persons or damages to property caused by or resulting from the concurrent negligence
of PSE, its officers, officials, employees, and volunteers and/or the contractor, or the City,
its elected officials, officers, officials, employees, and volunteers, and or the contractor,
the Party's liability shall be only to the extent of the Party's negligence.
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ORDINANCE NO. 5834
5. Notice: In the event any matter for which the City intends to assert its rights under
this section is presented to or filed with the City, the City shall promptly notify PSE and
PSE shall have the privilege, at its election and at its sole costs and expense, to settle and
compromise such matter as it pertains to PSE's responsibility to indemnify, defend and
hold harmless the City. In the event any suit or action is started against the City based
upon any such matter, the City shall likewise promptly notify PSE, and PSE shall have the
privilege, at its election and at its sole cost and expense, to settle and compromise such
suit or action, or defend the same at its sole cost and expense, by attorneys of its own
election, as it pertains to PSE's responsibility to indemnify, defend and hold harmless the
City.
6. Survival: The provisions of this section shall survive the expiration or termination
of this Franchise if the basis for any such claim, demand, suit or action as referenced in
Subsection 26.2 occurred during the term of this Franchise.
7. Ne�otiated: THE PARTIES HAVE SPECIFICALLY NEGOTIATED SECTION XXVI,
INDEMNIFICATION.
SECTION XXVII. Insurance
1. Insurance Required: PSE shall procure and maintain for the duration of the
Franchise, insurance, or provide evidence of self-insurance, against all claims for injuries
to persons or damages to property which may arise from or in connection with the
exercise of the privileges granted by this Franchise to PSE. PSE shall provide to the City
an insurance certificate, and/or a certificate of self-insurance, together with an
endorsement on the general and automotive liability policies, naming the City as an
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ORDINANCE N0. 5834
additional insured upon PSE's acceptance of this Franchise, and such insurance certificate
shall evidence the following minimum coverages:
a. Commercial �eneral liabilitv insurance for PSE's Facilities, inctuding but not
limited to, blanket contractual, property damage, operations, explosions and collapse
hazard, underground hazard (XCD) and products completed hazard, with limits not less
than five million dollars ($5,000,000) for each occurrence and with limits not less than
five million dollars($5,000,000) in the aggregate for bodily injury or death to each person,
property damage, or any other type of loss;
b. Automobile liabilitv for owned, non-owned and hired vehicles with a limit
of three million dollars ($3,000,000) for each person and three million dollars
($3,000,000) for each accident;
c. Worker's compensation consistent with the Industrial Insurance laws of
the State of Washington.
2. Claims Made Basis: If coverage is purchased on a "claims made" basis, then PSE
warrants continuation of coverage, either through policy renewals or the purchase of an
extended discovery period, if such extended coverage is available, for not less than three
(3) years from the date of termination of this Franchise and/or conversion from a "claims
made" form to an "occurrence" coverage form.
3. Deductibles: All deductibles shall be the sole responsibility of PSE. The insurance
certificate required by this section shall contain a clause stating that coverage shall apply
separately to each insured against whom claim is made or suit is brought, except with
respect to the aggregate limits of the insurer's liability.
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ORDINANCE NO. 5834
4. Additional Insured: The City shall be named as an additional insured on the
insurance policy, as respects to work performed by or on behalf of PSE and the
endorsement naming the City as additional insured shall be indicated on the certificate of
insurance or certification of self-insurance.
5. Primary Insurance: PSE's insurance shall be primary insurance with respect to the
City. Any insurance maintained by the City shall be in excess of PSE's insurance and shall
not contribute with it. PSE shall give the City thirty(30) calendar days prior written notice
by certified mail, return receipt requested, in the event of suspension or a material
change in coverage.
6. Cancellation: In the event of cancellation or a decision not to renew, PSE shall
obtain and furnish to the City evidence of replacement insurance policies meeting the
requirements of this section before the cancellation date.
7. Certificates and Endorsements: PSE shall furnish the City with certificates of
insurance evidencing the coverage or self-insurance required by this section upon
acceptance of this Franchise. The certificates and endorsements shall be signed by a
person authorized by the insurer to bind coverage on its behalf and must be received and
approved by the City prior to the commencement of any Work related to this Franchise.
8. Separate Covera�e: PSE's insurance shall contain a clause stating that coverage
shall apply separately to each insured against whom claim is made or suit is brought,
except with respects to the limits of the insurer's liability.
9. Self-Insurance: In lieu of the foregoing insurance requirements, PSE may self-
insure against such risks in such amounts as are consistent with prudent utility practices.
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ORDINANCE N0. 5834
PSE shall, upon request, provide the City with sufficient evidence that such self-insurance
is being so maintained.
10. No Limitation: The City does not represent that the coverage and minimum limits
of insurance required under this Franchise are adequate to protect PSE from all liability.
SECTION XXVIII. Notice
1. Whenever notice to or notification by any Party is required, that notice shall be in
writing and directed to the recipient at the address set forth below, unless written notice
of change of address is provided to the other Party. Any notice or information required
or permitted to be given to the Parties under this Franchise may be sent to following
addresses unless otherwise specified:
The City:
City of Renton
Administrator, Community and Economic Development Department
1055 South Grady Way
Renton, WA 98057
425-430-6588
PSE:
Puget Sound Energy, Inc.
Municipal Relations
P.O. Box 90734
Bellevue, WA 98009-9734
Attn: Municipal Liaison Manager
With a copy to:
Puget Sound Energy, Inc.
P.O. Box 90868
Bellevue, WA 98009-0868
Attn: General Counsel
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ORDINANCE NO. 5834
2. If the date for making any payment or performing any act is a legal holiday,
payment may be made or the act performed on the next succeeding business day which
is not a legal holiday.
3. The Parties may change the address and representative by providing written
notice of such change by accepted e-mail or certified mail. All notices shall be deemed
complete upon actual receipt or refusal to accept delivery. Facsimile or a .pdf e-mailed
transmission of any signed original document and retransmission of any signed facsimile
transmission shall be the same as delivery of an original document.
SECTION XXIX. Miscellaneous
1. As Is: Subject to, and without limiting in any way, any of the express rights or
obligations set forth in this Franchise, PSE agrees and accepts the Franchise Area in an "as
is" condition, and the City does not make any representations, implied or express
warranties, or guarantees as to the suitability, security or safety of the location of PSE's
Facilities or the Franchise Area, or possible hazards or dangers arising from other uses or
users of the Franchise Area, including any use by the City, the general public, or by other
utilities. As between the City and PSE, PSE shall remain solely and separately liable for
the Work, function, testing, maintenance, replacement and/or repair of the Facilities or
other activities permitted by this Franchise; provided, however, that nothing herein will
in any way relieve or absolve the City from any obligation owed to PSE or liability caused
by any negligence, gross negligence or willful misconduct of the City or anyone acting
under, for or on behalf of the City.
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ORDINANCE NO. 5834
2. Conflicts: If there is a conflict between this and any previous Franchise between
the Parties, the terms of this Franchise shall supersede the terms of the previous
Franchise.
3. Contractors (of any tier): PSE's contractors (of any tier) may act on PSE's behalf to
the extent that PSE permits its contractors to do so. PSE's contractors (of any tier) shall
also have every obligation, duty and responsibility that PSE has in discharging its duties
related to this Franchise.
4. Force Maieure: In the event that PSE is prevented or delayed in the performance
of any of its obligations under this Franchise by reason(s) beyond the reasonable control
of PSE (each, a "Force Majeure Event"), then PSE's performance shall be excused during
the Force Majeure Event. Upon removal or termination of the Force Majeure Event, PSE
shall promptly perform the affected obligations in an orderly and expedited manner
under this Franchise or procure a substitute for such obligation or performance that is
reasonably satisfactory to the City. PSE shall not be excused by mere economic hardship
or by misfeasance or matfeasance of its directors, officers or employees. As used herein,
Force Majeure Events include, but are not limited to, Acts of God, war, acts of domestic
terrorism or violence, civil commotion, labor disputes, strikes, earthquakes, fire, flood or
other casualty, shortages of labor or materials, government regulations or restrictions,
extreme weather conditions, and any failure or delay in the performance by the City or
any third party that is not an employee, agent or contractor of PSE. The Parties shall use
all commercially reasonable efforts to eliminate or minimize any delay caused by a Force
Majeure Event.
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ORDINANCE NO. 5834
5. Vacation of Ri�ht-of-Way: In the event the City considers vacating any portion of
the Franchise Area during the term of this Franchise, the City shall give PSE advance
written notice of the same to allow PSE the opportunity to review and comment on the
proposed vacation. Thereafter, unless otherwise requested by PSE, the City shall, in its
vacation procedure, reserve a public utility easement for PSE's Facilities based on the
input received from PSE.
6. Governin� law: This Franchise shall be made in and shall be governed by and
interpreted in accordance with the laws of the State of Washington.
7. Jurisdiction and Venue: Any lawsuit or legal action brought by any party to enforce
or interpret this Franchise or any of its terms or shall be in the United States District Court
for the Western District of Washington or in the King County Superior Court for the State
of Washington at the Maleng Regional Justice Center, Kent, Washington.
8. Notice of Tariff Chan�es: PSE shall, when making application for any changes in
tariffs affecting the provisions of the Franchise, notify the City in writing of the
application and provide City with a copy of the submitted application within five (5)
calendar days of filing with the WUTC. PSE shall further provide the City with a copy of
any actual approved tariff(s) affecting the provision of this Franchise.
9. Other Obli�ations: This Franchise shall not atter, change or limit PSE's obligations
under any other agreement or its obligations as it relates to any other property or
endeavor.
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ORDINANCE NO. 5834
10. PSE's Acceptance: The City may void this Franchise ordinance if PSE fails to file its
unconditional acceptance of this Franchise within thirty (30) calendar days from the final
passage of same by the City Council. PSE shall file this acceptance with the City Clerk.
11. Remedies Cumulative: Any remedies provided for under the terms of this
Franchise are not intended to be exclusive, but shall be cumulative with all other remedies
available to the City at law, in equity, or by statutes, unless specifically waived in this
Franchise or in a subsequent signed document.
12. Section Headin�s: The Section headings in this Franchise are for convenience only,
and do not purport to and shall not be deemed to define, limit, or extend the scope or
intent of the section to which they pertain.
13. Severabilitv: In the event that a court or agency of competent jurisdiction declares
a material provision of this Franchise to be invalid, illegal or unenforceable, the Parties
shall negotiate in good faith and agree,to the maximum extent practicable in light of such
determination, to such amendments or modifications as are appropriate so as to give
effect to the intentions of the Parties. If severance from this Franchise of the particular
provision(s) is determined to be invalid, illegal or unenforceable and/or will
fundamentally impair the value of this Franchise, either Party may apply to a court of
competent jurisdiction to reform or reconstitute the Franchise so as to recapture the
original intent of said particular provision(s). All other provisions of the Franchise shall
remain in effect at all times during which negotiations or a judicial action remains
pending.
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ORDINANCE N0. 5834
14. Survival: With respect only to matters arising during the period of time this
Franchise shall be in full force and effect, the Parties intend that any term or condition
applicable to such matters shall survive the expiration or termination of this Franchise to
the extent such survival can be reasonably inferred under the circumstances presented
and to the extent such an inference is necessary to prevent substantial injustice to an
injured Party.
SECTION XXX. Effective Date
This ordinance shall be in full force and effect from and after its passage, approval, and
five (5) calendar days after its legal publication as provided by law, and provided it has been duly
accepted by PSE.
PASSED BY THE CITY COUNCIL this 3rd day of April , 2017.
�
Jaso A. Seth, ity Clerk
APPROVED BY THE MAYOR this 3rd day of Apri 1 , 2017.
�
Denis Law, Mayor
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Approved as to form: ``�..���4��„R„��IV j�Q��i.,,�
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Shane Moloney, City Attorney , , _ _
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Date of Publication: 4/7/2017 (summary) ���i,�cO,Pp���H�����������`�Q,�6;``�.��
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52
ORDINANCE NO. 5834
UNCONDITIONAL ACCEPTANCE
The undersigned, PSE, accepts all the privileges of the above-granted franchise, subject to all the
terms, conditions, and obligations of this Franchise.
DATED: D � / G V , 2017.
Puget Sound Ener y, Inc.
B �` , / 6 GE.-
Y�
Print Name: �'����� � K�H
Its: ,C��,e�C.l C%� /�L-�'�/�//�/Lr%
53