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HomeMy WebLinkAboutFinal Agenda Packet CITY OF RENTON AGENDA - City Council Regular Meeting 7:00 PM - Monday, October 28, 2019 Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. SPECIAL PRESENTATION a) State of the County - King County Councilmember Reagan Dunn 4. ADMINISTRATIVE REPORT 5. AUDIENCE COMMENTS • All remarks must be addressed to the Council as a whole, if a response is requested please provide your name and address, including email address, to the City Clerk to allow for follow‐up. • Speakers must sign-up prior to the Council meeting. • Each speaker is allowed five minutes. • When recognized, please state your name & city of residence for the record. NOTICE to all participants: Pursuant to state law, RCW 42.17A.555, campaigning for any ballot measure or candidate in City Hall and/or during any portion of the council meeting, including the audience comment portion of the meeting, is PROHIBITED. 6. CONSENT AGENDA The following items are distributed to Councilmembers in advance for study and review, and the recommended actions will be accepted in a single motion. Any item may be removed for further discussion if requested by a Councilmember. a) Approval of Council Meeting minutes of October 21, 2019. Council Concur b) AB - 2497 Administrative Services Department recommends adopting several ordinances amending Title V, Finance and Business Regulations, of the Renton Municipal Code. Refer to Finance Committee c) AB - 2459 Community Services Department recommends approval of an ordinance amending Renton Municipal Code (RMC) 2-9, to revise Parks Commission regulations. Refer to Community Services Committee d) AB - 2479 Human Resources / Risk Management Department recommends approval of the Healthcare Management Administrators (HMA) Services Agreement Fee Schedule, in the amount of $306,500, for processing medical and dental claims for City employees. Refer to Finance Committee e) AB - 2488 Human Resources / Risk Management Department recommends approval of the Kaiser Permanente (formerly Group Health) contracts, in the amount of $192,750, for active employees and LEOFF I retirees. Refer to Finance Committee f) AB - 2490 Human Resources / Risk Management Department recommends approval of the Symetra Service Agreement, in the amount of $154,000, which provides basic life insurance to regular employees, and disability insurance to AFSCME and non-represented employees. Refer to Finance Committee g) AB - 2498 Municipal Court recommends approval of the following division reorganization: Create a series for the existing Judicial Specialist position (JS I salary grade a08, JS II salary grade a12); change Court Operations Specialist from salary grade a10 to a15. Council Concur 7. UNFINISHED BUSINESS Topics listed below were discussed in Council committees during the past week. Those topics marked with an asterisk (*) may include legislation. Committee reports on any topics may be held by the Chair if further review is necessary. a) Utilities Committee: Verizon Small Cell Franchise Agreement*; New Cingular Wireless Small Cell Franchise Agreement*: Renton Hill Utility Project Change Order (CAG-17-174); Monroe Ave. Storm Improvement Project Agreement; Water Quality Stormwater Capacity Grant 8. LEGISLATION Ordinances for first reading: a) Ordinance No. 5935: Verizon Small Cell Franchise (See Item 7.a) b) Ordinance No. 5936: New Cingular Wireless Small Cell Franchise (See Item 7.a) Ordinance for second and final reading: c) Ordinance No. 5934: Amending RMC Ch. 3-10 to create a New Judicial Position (First Reading 10/21/2019) 9. NEW BUSINESS (Includes Council Committee agenda topics; visit rentonwa.gov/cityclerk for more information.) 10. ADJOURNMENT COMMITTEE OF THE WHOLE MEETING AGENDA (Preceding Council Meeting) 6:00 p.m. - 7th Floor - Council Chambers Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCESS CHANNEL 21 To view Council Meetings online, please visit rentonwa.gov/councilmeetings October 21, 2019 REGULAR COUNCIL MEETING MINUTES    CITY OF RENTON  MINUTES ‐ City Council Regular Meeting  7:00 PM ‐ Monday, October 21, 2019  Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way    CALL TO ORDER AND PLEDGE OF ALLEGIANCE     Mayor Law called the meeting of the Renton City Council to order at 7:00 PM and led the  Pledge of Allegiance.     ROLL CALL    Councilmembers Present:  Don Persson, Council President  Randy Corman  Ryan McIrvin  Ruth Pérez  Armondo Pavone  Ed Prince  Councilmembers Absent:  Council Position No. 3 Vacant                     ADMINISTRATIVE STAFF PRESENT    Denis Law, Mayor  Jan Hawn, Administrative Services Administrator  Cheryl Beyer, Senior Assistant City Attorney   Jason Seth, City Clerk  Ellen Bradley‐Mak, Human Resources and Risk Management Administrator  Bonnie Woodrow, Court Services Director  Kari Roller, Fiscal Services Director  Wendy Rittereiser, HR Benefits Manager  Stephanie Hynes, Community Program Coordinator  Alan Wyatt, Capital Projects Manager  Commander Charles Karlewicz, Police Department              AGENDA ITEM #6. a) October 21, 2019 REGULAR COUNCIL MEETING MINUTES  PROCLAMATION    Red Ribbon Week 2019:  A proclamation by Mayor Law was read declaring October 23 ‐ 31,  2019 to be Red Ribbon Week 2019 in the City of Renton, encouraging all citizens to join him in  participating in drug prevention education activities, making a visible statement that we are  strongly committed to a drug‐free state. Stephanie Hynes, Renton Police Department's  Community Program Coordinator, accepted the proclamation with appreciation.    MOVED BY PERSSON, SECONDED BY PRINCE, COUNCIL CONCUR IN THE  PROCLAMATION. CARRIED.    PUBLIC HEARING    2019‐2020 Mid‐Biennial Budget Update: This being the date set and proper notices having  been posted and published in accordance with local and State laws, Mayor Law opened the  public hearing to consider the proposed 2019/2020 Mid‐Biennial Budget Amendment and  related legislation. Administrative Services Administrator, Jan Hawn, informed Council that  this is the first of two public hearings regarding budget preparations. She shared that the  intent of this hearing is to solicit public input, and to allow Council time to deliberate the  proposal.     Ms. Hawn explained that the proposed 2019/2020 Mid‐Biennial Budget Amendment includes  updated general fund revenue projections, makes housekeeping adjustments to incorporate  prior Council actions, and makes adjustments for unexpected costs and proposed  departmental changes. She also noted that the administration is requesting that Council 1) set  the property tax levy for 2020, 2) adopt the related budget legislation, and 3) approve the  updates to the City's fee schedule. Concluding, Ms. Hawn reviewed the proposed changes to  the budget and fee schedule.     Public comment was invited, and with there being no comments or further discussion, it was    MOVED BY PERSSON, SECONDED BY CORMAN, COUNCIL CLOSE THE PUBLIC  HEARING. CARRIED.    ADMINISTRATIVE REPORT    Administrative Services Administrator Jan Hawn reviewed a written administrative report  summarizing the City’s recent progress towards goals and work programs adopted as part of  its business plan for 2019 and beyond. Items noted were:   Fall rainy season is here! Street sweepers are dispatched daily to clean up debris  along major arterials, but the Public Works Department would like to remind  residents to help us prevent local residential street flooding. Be sure to monitor catch  basins near your home and keep them clear of leaves and other debris. If you notice  excessive water collecting in areas where catch basins may be clogged, please call  425‐430‐7400.   The Forestry Division in Parks Planning & Natural Resources has finalized a tree  planting contract to replace trees in the downtown core. A number of trees did not  do well in grated planting locations due to drought, disease, soil volume, and species  selection. 34 trees have been removed and these will be replaced with six different  AGENDA ITEM #6. a) October 21, 2019 REGULAR COUNCIL MEETING MINUTES  varieties of trees over the next couple of months. Disruption to traffic and businesses  should be minimal and courtesy notices have been sent out.   Preventative street maintenance will continue to impact traffic and result in  occasional street closures.     AUDIENCE COMMENTS     Jason Collins, Renton, spoke on a wide range of topics.    CONSENT AGENDA  Items listed on the Consent Agenda were adopted with one motion, following the listing.   a) Approval of Council Meeting minutes of October 14, 2019. Council Concur.   b) AB ‐ 2493 Community & Economic Development Department recommended amending  Renton Municipal Code (RMC) 2‐8‐6 and 2‐8‐7 amending City Art Collection regulations,  repealing the One Percent for Arts program, and establishing the Municipal Arts Fund. Refer  to Community Services Committee.   c) AB ‐ 2495 Community & Economic Development Department requested authorization to  execute a franchise agreement with New Cingular Wireless PCS, LLC that allows the franchisee  to construct, operate, maintain, replace, relocate, repair, upgrade, remove, excavate, acquire,  and use the Small Cell Facilities for its small cell network within and through public rights‐of‐ way within the City of Renton. Refer to Utilities Committee.   d) AB ‐ 2492 Utility Systems Division recommended approval of the Water Quality Stormwater  Capacity Grant Agreement No. WQSWCAP‐1921‐Renton‐00019, with the Department of  Ecology, to receive up to $50,000 in non‐matching grant funds to assist with complying with  the requirements of the Western Washington Phase II Municipal Stormwater Permit. Refer to  Utilities Committee.    MOVED BY PERSSON, SECONDED BY PRINCE, COUNCIL CONCUR TO APPROVE THE  CONSENT AGENDA, AS PRESENTED. CARRIED.    UNFINISHED BUSINESS   a) Finance Committee Chair Pavone presented a report concurring in the staff recommendation to  approve the following payments:  1. Accounts Payable – total payment of $5,291,955.69 for vouchers, 378107‐378115,  378128‐378496; payroll benefit withholding vouchers 6134‐6142, 378116‐378127 and  two wire transfers.  2. Payroll – total payment of $1,502,986.20 for payroll vouchers which includes 677 direct  deposits and 8 checks (9/16/19‐9/30/19 pay period).  3. Kidder Mathew – total payment of $39,236.20 for vouchers 5970‐5987.    MOVED BY PAVONE, SECONDED BY PRINCE, COUNCIL CONCUR IN THE  COMMITTEE RECOMMENDATION. CARRIED.           AGENDA ITEM #6. a) October 21, 2019 REGULAR COUNCIL MEETING MINUTES  b) Finance Committee Chair Pavone presented a report concurring in the staff recommendation to  approve the water leak adjustment request and crediting the account of MVP Dental Holdings  LLC, located at 300 Pelly Ave North in the amount of $3,957.90 for the applicable water, sewer,  and King County Metro portions of the bill in accordance with City Code 8‐4‐46 and 8‐5‐23.    MOVED BY PAVONE, SECONDED BY PRINCE, COUNCIL CONCUR IN THE  COMMITTEE RECOMMENDATION. CARRIED.   c) Finance Committee Chair Pavone presented a report concurring in the staff recommendation to  approve the 2020 Excess Loss (Stop Loss) insurance contract with Symetra, and authorized the  Mayor and City Clerk to sign the implementing documents, when ready. The 2020 Symetra  contract has a premium increase of 8.5% over 2019, and the individual deductible amount  remains at $250,000.    MOVED BY PAVONE, SECONDED BY PRINCE, COUNCIL CONCUR IN THE  COMMITTEE RECOMMENDATION. CARRIED.   d) Finance Committee Chair Pavone presented a report concurring in the staff recommendation to  approve the construction contract for the Sunset Neighborhood Park, Phase 2 project, as  advertised through the Daily Journal of Business, to Terra Dynamics, Inc., in the amount of  $4,059,000 to complete the project.The Committee further recommended that the Mayor and  City Clerk be authorized to execute the contract.    MOVED BY PAVONE, SECONDED BY PRINCE, COUNCIL CONCUR IN THE  COMMITTEE RECOMMENDATION. CARRIED.   e) Finance Committee Chair Pavone presented a report concurring in the staff recommendation to  hire the Capital Project Coordinator – Park Planning at Pay Grade a28, Step E. The position is  currently budgeted at Pay Grade a28, Step E. The increased costs in 2019 will be absorbed by  salary savings.     The position was advertised three times within five months, with eight applicants being invited  for interviews during the recruitment processes. One candidate met all of the qualifications of  the position and is a licensed landscape architect, has extensive environmental and park design,  permitting, construction administration, community engagement, and grant writing experience.     MOVED BY PAVONE, SECONDED BY PRINCE, COUNCIL CONCUR IN THE  COMMITTEE RECOMMENDATION. CARRIED.   f) Finance Committee Chair Pavone presented a report concurring in the staff recommendation  that Council authorize the creation of a new judicial position that is necessary due to the  sustained increases in the photo enforcement caseload, jury trials and after‐hours search  warrants.     MOVED BY PAVONE, SECONDED BY PRINCE, COUNCIL CONCUR IN THE  COMMITTEE RECOMMENDATION. CARRIED.   g) Finance Committee Chair Pavone presented a report concurring in the staff recommendation to  authorize staff to compensate Michael Sippo as a Civil Engineer III at Step E of Grade a29  effective November 12, 2019.    MOVED BY PAVONE, SECONDED BY PRINCE, COUNCIL CONCUR IN THE  COMMITTEE RECOMMENDATION. CARRIED.   AGENDA ITEM #6. a) October 21, 2019 REGULAR COUNCIL MEETING MINUTES  h) Finance Committee Chair Pavone presented a report concurring in the staff recommendation to  authorize the Mayor and City Clerk to execute the Local Agency Agreement with the Washington  State Department of Transportation for the obligation of grant funding and all subsequent  agreements necessary to accomplish the Renton Elementary and Middle School Crossings  Project.    MOVED BY PAVONE, SECONDED BY PRINCE, COUNCIL CONCUR IN THE  COMMITTEE RECOMMENDATION. CARRIED.    LEGISLATION   Ordinance for first reading:   a) Ordinance No. 5934: An ordinance was read amending Chapter 3‐10 of the Renton Municipal  Code, creating a new full‐time judicial position, providing for severability, and establishing an  effective date.    MOVED BY PAVONE, SECONDED BY PRINCE, COUNCIL REFER THE ORDINANCE  FOR SECOND AND FINAL READING AT THE NEXT COUNCIL MEETING. CARRIED.   Ordinance for second and final reading:   b) Ordinance No. 5933:  An ordinance was read amending Section 2‐21‐4 of the Renton  Municipal Code, by updating Renton Regional Fire Authority Governing Board term language,  providing for severability, and establishing an effective date.     MOVED BY PERSSON, SECONDED BY PRINCE, COUNCIL ADOPT THE ORDINANCE  AS READ. ROLL CALL: ALL AYES. CARRIED.    NEW BUSINESS   Please see the attached Council Committee meeting calendar.    ADJOURNMENT    MOVED BY PERSSON, SECONDED BY PRINCE, COUNCIL ADJOURN. CARRIED. TIME:  7:24 P.M.    Jason A. Seth, CMC, City Clerk  Jason Seth, Recorder  Monday, October 21, 2019  AGENDA ITEM #6. a) Council Committee Meeting Calendar October 21, 2019 October 28, 2019 Monday 4:00 PM Planning & Development Committee, Chair Prince – Council Conference Room 1. Docket #14 2. Multi-family Property Tax Exemption Update 3. Emerging Issues in CED 5:00 PM Utilities Committee, Chair Pérez – Council Conference Room 1. Verizon Small Cell Franchise Agreement 2. New Cingular Wireless Small Cell Franchise Agreement 3. Renton Hill Utility Project Change Order 4. Monroe Ave. Storm Improvement Project Agreement * 5. Water Quality Stormwater Capacity Grant 6. Emerging Issues in Utilities 6:00 PM Committee of the Whole, Chair Persson – Council Chambers 1. WSDOT/Sound Transit Update 2. Emerging Issues *Added agenda item Rev 102219 AGENDA ITEM #6. a) AB - 2497 City Council Regular Meeting - 28 Oct 2019 SUBJECT/TITLE: Amending Renton Muncipal Code 5-5, 5-6, 5-7, 5-8, 5-11, 5-25, 5-26 RECOMMENDED ACTION: Refer to Finance Committee DEPARTMENT: Administrative Services Department STAFF CONTACT: Nate Malone, Tax & License Manager EXT.: 6936 FISCAL IMPACT SUMMARY: N/A SUMMARY OF ACTION: Several sections of the Renton Municipal Code need to be amended to comply with the new tax requirements from SHB 1403 and SSHB 1059. The new mandatory changes include a due date change for annual filers and a change to apportionment provisions as well as other miscellaneous updates. In addition, other chapters need to be amended to comply with state law and additional compatibility changes with the Tax and License system and File Local. EXHIBITS: A. Issue Paper B. Ordinance 2075 RMC 5-5 C. Ordinance 2076 RMC 5-6 D. Ordinance 2077 RMC 5-7 E. Ordinance 2078 RMC 5-11 F. Ordinance 2079 RMC 5-8 G. Ordinance 2080 RMC 5-25 H. Ordinance 2081 RMC 5-26 STAFF RECOMMENDATION: Administrative Services recommends to adopt the proposed code amendments that take effect January 1, 2020. AGENDA ITEM #6. b) ADMINISTRATIVE SERVICES M E M O R A N D U M DATE:October 21, 2019 TO:Don Persson, Council President Members of Renton City Council VIA:Denis Law, Mayor FROM:Jan Hawn, ASD Administrator STAFF CONTACT:Nate Malone, Tax & License Manager SUBJECT:Ordinance to amend Renton Municipal Code Chapters 5-5, 5- 6, 5-7, 5-11, 5-8, 5-25 and 5-26 BACKGROUND Several sections of the Renton Municipal Code need to be amended to comply with the new tax requirements from SHB 1403 and SSHB 1059. The new mandatory changes include a due date change for annual filers and a change to apportionment provisions as well as other miscellaneous updates. In addition other chapters need to be amended to comply with state law and additional compatibility changes with the Tax and License system and File Local. ISSUE The Finance Division has recognized the need to update and amend the Renton Municipal Code as it relates to business licensing and business taxes. Some of the changes are mandated by the state, some clarify confusing language, some clarify administrative procedures and ensure compatibility with File Local and our tax and license system. Below is a summary of the key changes and amendments. Chapter 5-5 o Adding refund administrative provisions to clarify when license fees may be refunded and when they are considered not refundable. Chapter 5-6 o Amending tax code to clarify when and who admission tax applies to and more closely aligning this code chapter with RCW 35.21.280. o Removing the administrative provisions and referring all administrative provisions to RMC 5-26. Chapter 5-7 o Repealing the chapter in its entirety to increase compatibility with File Local and tax and license systems. o The entertainment device license was assessed in addition to an amusement games tax and has minimal budgetary impacts. Chapter 5-11 o Clarifying and updating definitions to more closely align with mandatory provisions in RCW 35A.82. AGENDA ITEM #6. b) Don Persson, Council President Page 2 of 2 April 1, 2019 o Removing all administrative provisions from this chapter and referring to the administrative provisions in RMC 5-26. Chapter 5-8 o Clarifying and updating language to more closely align and follow RCW 9.46. o Modifying the applicability of the pull tabs tax to apply on gross receipts less cash prizes awarded for both non-profit businesses and for profit businesses. o Removing minimum tax for card games tax. o Adding a threshold of $5,000 of taxable amusement games receipts for bona fide charitable or nonprofit organizations. o Removing all administrative provisions from this chapter and referring to the administrative provisions in RMC 5-26. Chapter 5-25 o Adopting mandatory model ordinance provisions required by SHB 1403 primarily related to service income apportionment. Chapter 5-26 o Adopting mandatory model ordinance provisions required by SSHB 1059 relating to changing the due date for annual tax filers. RECOMMENDATION Staff recommends the Council to authorize the City to approve the attached ordinances amending Renton Municipal Code Chapters 5-5, 5-6, 5-7, 5-11, 5-8, 5-25 and 5-26. AGENDA ITEM #6. b) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, REPEALING CHAPTER 5-7 OF THE RENTON MUNICIPAL CODE, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE. THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I.Chapter 5-7 of the Renton Municipal Code is repealed. CHAPTER 7 ENTERTAINMENT DEVICE LICENSE SECTION: 5-7-1: Entertainment Device License Repealed 5-7-1 ENTERTAINMENT DEVICE LICENSE: A. Definitions: ENTERTAINMENT DEVICE: Any machine, structure, apparatus or device of any type, that provides for entertainment or amusement or as a game of skill, for which a charge is made for use or play; such entertainment device shall include, but not be limited to, a phonograph, nickelodeon or similar mechanical music machine, any type or variation of games known as shuffleboard, pool, foosball, bowling alley (portable), darts, or video game, whether electronically activated or not, or any other similar device or game played for the purpose of entertainment or to test the operator’s skill and precision and played by any person. In the case of a machine containing more than one discrete video game, each separate video game shall be considered to be a separate entertainment device for the purposes of this Chapter. AGENDA ITEM #6. b) ORDINANCE NO. ________ 2 Any activity prohibited by Chapter 9.46 RCW (Gambling – 1973 act), as it exists or may be amended, shall be expressly excluded from the above definition and licensing. B. Entertainment Device License Required: It shall be unlawful for any person to offer or permit the use by others of any entertainment device within the City without having a valid entertainment device license, for each location at which such devices are operated. C. Application for License: 1. Application for such license shall be made to the Administrator, in such form and containing such information as the Administrator may require and on forms to be furnished by the City unto the applicant. Said application form shall contain, among others, the following information: a. The name of the applicant, owner, partner or officer who has an interest in the business or entity of such licensee, together with the names and addresses of any other party having a proprietary interest. b. The residence and business address of the applicant and owner or owners. c. Whether any such license previously issued by the City or any other governmental entity had ever been suspended, revoked or cancelled; if so, for what cause and the dates and circumstances of the suspension, revocation or cancellation. AGENDA ITEM #6. b) ORDINANCE NO. ________ 3 d. The total number of entertainment devices at the location for which the license is issued. 2. Upon receipt of a completed application form, the Administrator shall issue such license applied for in accordance with the provisions of this Section; provided, however, that the applicable license fees, together with any delinquent fees that may then be due, shall first be paid unto the Administrator. D. Fees and Display of License: The fee to be paid hereunder, for each entertainment device, as herein defined, shall be the sum of thirty dollars ($30.00) per quarter, per machine, or an annual fee for each such entertainment device of one hundred twenty dollars ($120.00). The license shall be issued on a quarterly basis. Each license issued under this section shall be kept in prominent display at the location for which same has been issued. The license is not transferable, and the fee is not refundable. The license shall display the total number of machines licensed for operations at the location. In no event such license fee shall exceed three thousand dollars ($3,000) per year at a single location. E. Violations and Penalties: Any person guilty of violating or failing to comply with any of the provisions of this Section or furnishing false information on any application for a license shall be guilty of a misdemeanor and, if convicted, shall be punished by a fine up to one thousand dollars ($1,000), and/or imprisonment for up to ninety (90) calendar days. F. License Fee Payment; When Due, Penalty: AGENDA ITEM #6. b) ORDINANCE NO. ________ 4 1. The license fee imposed by this Chapter shall be due and payable in quarterly installments and remittance thereof shall accompany each return made on or before the thirtieth (30th) day of the month next succeeding the quarterly period in which the license fee accrued. 2. There shall be added a penalty, for each payment due, if such payment is not made by the due date, as follows: a. A ten percent (10%) penalty, with a minimum of two dollars ($2.00), for the first seventeen (17) calendar days of delinquency. b. A fifteen percent (15%) penalty, with a minimum of four dollars ($4.00), for a delinquency greater than seventeen (17) calendar days but less than forty (40) calendar days. c. Any delinquency of forty (40) calendar days or more shall be deemed a violation of this subsection. SECTION II.If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or 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 thirty (30) days after publication of a summary of this ordinance in the City’s official newspaper. The summary shall consist of this ordinance’s title. AGENDA ITEM #6. b) ORDINANCE NO. ________ 5 PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2019. Jason A. Seth, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2019. Denis Law, Mayor Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD:2077:8/29/19 AGENDA ITEM #6. b) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING CHAPTER 5-11 OF THE RENTON MUNICIPAL CODE, REORGANIZING, UPDATING DEFINITIONS, AND ADDING ADMINISTRATIVE PROVISIONS RELATED TO UTILITY TAX REGULATIONS, 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 not shown in strikethrough and underline edits remain in effect and unchanged. SECTION II.Chapter 5-11 of the Renton Municipal Code is amended as follows: CHAPTER 11 UTILITY TAX SECTION: 5-11-1: Exercise Of Revenue License Power 5-11-2: General Administrative Provisions Apply 5-11-3: Definitions 5-11-41: Utility Tax 5-11-2: Utility Tax; When Due 5-11-3: Definition Of Gross Income 5-11-5: Cellular Telephone Service Allocation And Administration 5-11-64: Utility Tax Relief 5-11-75: Utility Tax Relief; Qualifications 5-11-86: Claim Filing Procedures AGENDA ITEM #6. b) ORDINANCE NO. ________ 2 5-11-97: Consumer Price Index Changes 5-11-108: Rebate For Initial Year 5-11-1 EXERCISE OF REVENUE LICENSE POWER: The provisions of this chapter shall be deemed to be an exercise of the power of the City to license and tax for revenue. 5-11-2 GENERAL ADMINISTRATIVE PROVISIONS APPLY: The provisions of chapter 5-26 RMC, the Tax Administrative Code, shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. 5-11-3 DEFINITIONS: A. CABLE BUSINESS: Every person in the business of constructing, operating and maintaining a coaxial cable subscriber system for television, radio, and other audio-visual electrical signal distribution within Renton City limits. B. CELLULAR TELEPHONE BUSINESS: Every person providing Cellular Telephone Service. C. CELLULAR TELEPHONE SERVICE: The providing of Mobile Telecommunications Service or Mobile Wireless Service. D. COMPETITIVE TELEPHONE SERVICE: The providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject AGENDA ITEM #6. b) ORDINANCE NO. ________ 3 to regulation as telephone companies under Title 80 RCW and for which a separate charge is made. E. GAS BUSINESS: Every person selling, furnishing, distributing, or producing gaseous gas for commercial or domestic use or purpose within Renton City limits. F. GROSS INCOME: The value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. G. LIGHT OR POWER BUSINESS: Every person in the business of selling, furnishing, or distributing electricity for light and power within Renton City limits. H. MOBILE TELECOMMUNICATIONS SERVICE: Commercial mobile radio service, as defined in section 20.3, Title 47 C.F.R. as in effect on June 1, 1999. I. MOBILE WIRELESS SERVICE: A telecommunications service that is transmitted, conveyed, or routed regardless of the technology used, whereby the origination and/or termination points of the transmission, conveyance, or AGENDA ITEM #6. b) ORDINANCE NO. ________ 4 routing are not fixed, including, by way of example only, telecommunications services that are provided by a commercial mobile radio service provider. J. NETWORK TELEPHONE SERVICE: The providing by any person of access to a local telephone network, local telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. "Network telephone service" includes the provision of transmission to and from the site of an internet provider via a telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. “Network telephone service” does not include the providing of competitive telephone service, the providing of cable television service, or the providing of broadcast services by radio or television stations, nor the provision of internet access as defined in RCW 82.04.297, including the reception of dial-in connection, provided at the site of the internet service provider. K. SEWERAGE BUSINESS: Every person engaging in or carrying on the business of selling, furnishing, or distributing sanitary sewer services for commercial or domestic use or purpose within Renton City limits. L. SOLID WASTE BUSINESS: Every person who, within Renton City limits, receives solid waste or recyclable materials for transfer, storage, or disposal, including but not limited to all collection services, public or private solid waste disposal sites, transfer stations, and similar operations. “Solid waste” means all AGENDA ITEM #6. b) ORDINANCE NO. ________ 5 putrescible and nonputrescible solid and semisolid wastes including, but not limited to, garbage, rubbish, ashes, industrial wastes, swill, sewage sludge, demolition and construction waste, abandoned vehicles or parts thereof, and recyclable materials. “Recyclable materials” means those solid wastes that are separated for recycling or reuse, such as papers, metals, and glass. M. STORM AND SURFACE WATER BUSINESS: Every person engaging in or carrying on the business of selling, furnishing, or distributing storm and surface water drainage services for commercial or domestic use or purpose within Renton City limits. N. TELECOMMUNICATIONS SERVICES: The electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. "Telecommunications service" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as voice over internet protocol services or is classified by the federal communications commission as enhanced or value added. “Telecommunications service” does not include those activities expressly excluded from the definition in RCW 82.04.065(27). O. TELEPHONE BUSINESS: Every person providing of network telephone service, telecommunications services, cooperative or farmer line telephone companies or associations operating an exchange within Renton City limits. AGENDA ITEM #6. b) ORDINANCE NO. ________ 6 P. WATER DISTRIBUTION BUSINESS: Every person engaged in the business of selling, furnishing, or distributing water services for commercial or domestic use or purpose within Renton City limits. 5-11-41 UTILITY TAX: In addition to the license fees provided elsewhere in this Title, there is hereby levied upon and shall be collected from the business enterprises engaged in certain business activities and occupations described in this Section, taxes in the amounts to be determined by the application of the rates herein stated against gross income. In computing said tax the business enterprise may deduct in computing gross income the actual amount of credit losses and uncollectibles sustained by the business enterprise, and amounts derived from transactions in interstate and foreign commerce which the City is prohibited from taxing under the laws and Constitution of the United States. The amount of tax shall be computed as follows: .using the following rates: A. The Telephone Utility Tax Business tax rate: 1. The utility tax for the privilege of conducting a telephone business within the City limits shall be six percent (6%). 2. Definitions: For the purpose of this Section the following terms shall be defined as follows: B. The Cellular Telephone Business tax rate shall be six percent (6%). CELLULAR TELEPHONE SERVICE: Cellular telephone service is a two-way voice and data telephone/telecommunications system based in whole or AGENDA ITEM #6. b) ORDINANCE NO. ________ 7 substantially in part on wireless radio communications and which is not subject to regulation by the Washington Utilities and Transportation Commission (WUTC). This includes cellular mobile service. The definition of “cellular mobile service” includes other wireless radio communications services such as specialized mobile radio (SMR), personal communications services (PCS), and any other evolving wireless radio communications technology which accomplishes a purpose similar to cellular mobile service. COMPETITIVE TELEPHONE SERVICE: The providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made. Transmission of communication through cellular telephones is classified as “telephone business” rather than “competitive telephone service”. TELEPHONE BUSINESS: The providing by any person of access to the local telephone network, local telephone network switching service, toll service, cellular telephone service, or coin telephone services, or the providing of telephonic, video, data or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. It further indicates cooperative or farmer line telephone companies or associations operating an exchange. AGENDA ITEM #6. b) ORDINANCE NO. ________ 8 “Network telephone service” includes interstate service, including toll service, originating from or received on telecommunications equipment or apparatus in this State if the charge for the service is billed to a person in this State. “Network telephone service” does not include the providing of competitive telephone service, the providing of cable television service, nor the providing of broadcast services by radio or television stations. 3. Deduction from Gross Income: (Rescinded by Ord. 4825, 12-20-99) 4. Allocation of Income, Cellular Telephone Service: a. Service Address: Payments by a customer for the telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer’s principal service address during the period for which the tax applies. b. Presumption: There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary. c. Roaming Phones: When the service is provided while a subscriber is roaming outside the subscriber’s normal cellular network area, the gross income shall be assigned consistent with the taxpayer’s accounting system to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call. d. Dispute Resolution: If there is a dispute between or among the City and another city or cities as to the service address of a customer who is AGENDA ITEM #6. b) ORDINANCE NO. ________ 9 receiving cellular telephone services and the dispute is not resolved by negotiation among the parties, then the dispute shall be resolved by the City and the other city or cities by substituting the issue for settlement to the Association of Washington Cities (AWC). Once taxes on the disputed revenues have been paid to one of the contesting cities, the cellular telephone service company shall have no further liability with respect to additional taxes, penalties, or interest on the disputed revenues so long as it promptly changes its billing records for future revenues to comport with the settlement facilitated by AWC. 5. Authority of Administrator: The Administrative Services Administrator is authorized to represent the City in negotiations with other cities for the proper allocation of taxes due under Section 5-11-1A.4.a. 6. Rate Change: No change in the rate of tax upon persons engaging in providing cellular telephone service shall apply to business activities occurring before the effective date of the change and, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax may take effect sooner than sixty (60) days following the enactment of the ordinance establishing the change. The Administrative Services Administrator shall send to each cellular telephone service company, at the address on its license, a copy of any ordinance changing the rate of tax upon cellular telephone service promptly upon its enactment. AGENDA ITEM #6. b) ORDINANCE NO. ________ 10 B. Telegraph Utility Tax: Upon every business enterprise engaging in carrying on a telegraph business, a tax equal to six percent (6%) of the total gross income from such business in the City shall be charged. C. The Gas Business Utility Tax: Upon every business enterprise engaging in or carrying on the business of selling, furnishing, distributing or producing gaseous gas for commercial or domestic use or purpose, a tax equal to tax rate shall be six percent (6%) of the total gross income from such business in the City shall be charged. D. The Light or Power Business Electric Utility Tax: Upon every business enterprise engaging in or carrying on the business of selling, furnishing or distributing electricity for light and power, a tax equal to tax rate shall be six percent (6%) of the total gross income from such business in the City shall be charged. E. The Cable Business Utility Tax: Upon every business enterprise engaging in or carrying on the business of constructing, operating and maintaining a coaxial cable subscriber system for television, radio and other audio-visual electrical signal distribution throughout the City of Renton or any part thereof, a tax equal to tax rate shall be six percent (6%) of the total gross income from such business in the City shall be charged. F. Ambulance Services Tax: Upon any business enterprise, licensed by the State to provide and engage in emergency medical care and transportation services, pursuant to RCW 35.21.766, and as same may be amended from time AGENDA ITEM #6. b) ORDINANCE NO. ________ 11 to time, a tax in the sum of four hundred dollars ($400.00) per year which shall apply to all of said State licensees doing business in, from or about the City. Such tax shall be paid on or before the first day of January of each year, and made payable to the City of Renton. Said tax is imposed pursuant to RCW 35.21.768 and the laws and statutes of the State relating to noncharter code cities operating under the Optional Municipal Code. FG.The Sewerage Business Utilities Tax: Upon any business enterprise engaging in or carrying on the business of selling, furnishing, or distributing sanitary sewer services for commercial or domestic use or purpose within the Renton City limits, a tax equal to tax rate shall be six percent (6%) of the total gross income from such business in the City shall be charged. GH. The Solid Waste Business Utility, Handling Tax: Upon the solid waste utility and upon every business enterprise or other entity engaged in solid waste handling as defined in Section 8-1-2 of Title 8 (Health and Sanitation) of the Code of General Ordinances of the City, a tax equal to tax rate shall be six and eight- tenths percent (6.8%) of the operating rate revenue of the solid waste utility and six and eight-tenths percent (6.8%) of the total gross income for all other business enterprises in the City covered under this Section shall be charged. The taxes under this Section shall be payable to the City. Pursuant to RCW 35.58.080, nothing in this Section is intended nor shall it be construed to impose any tax or excise on any County-owned solid waste facility. AGENDA ITEM #6. b) ORDINANCE NO. ________ 12 HI. The Cable Business Modem Utility Tax: Upon cable modem service and upon every business or entity engaged in providing cable modem service, a tax equal to tax rate shall be six percent (6%) of the total gross income from such business in the City shall be charged. IJ. The Water Distribution Business Utilities Tax: Upon the Water Utility Enterprise Fund engaging in or carrying on the business of selling, furnishing, or distributing water services for commercial or domestic use or purpose within the Renton City limits, a tax equal to tax rate shall be six and eight-tenths percent (6.8%) of the total gross income from such business in the City shall be charged. JK. The Storm and Surface Water Business Utilities Tax: Upon any business enterprise engaging in or carrying on the business of selling, furnishing, or distributing storm and surface water drainage services for commercial or domestic use or purpose within the Renton City limits, a tax equal to tax rate shall be six and eight-tenths percent (6.8%) of the total gross income from such business in the City shall be charged. 5-11-2 UTILITY TAX; WHEN DUE: The utility tax imposed by this Chapter shall be due and payable to the Administrative Services Administrator in monthly installments and remittance thereof shall be made to the Administrative Services Administrator on or before the last day of the next month succeeding the end of the monthly period in which the tax accrued. The business enterprise on or before said last day of said month shall also transmit to the Administrative Services Administrator a return AGENDA ITEM #6. b) ORDINANCE NO. ________ 13 upon a form to be prescribed and provided by the Administrative Services Administrator; which return shall contain a statement by the business enterprise stating the amount of the tax for which he is liable for the preceding monthly period under and computed according to the provisions of this Chapter, that the information therein given and the amount of tax liability therein reported are full and true, and that he knows the same to be so, which statement shall be signed by the business enterprise or authorized agent, and the signing of same shall be deemed and constitute the same as a statement under the penalties of perjury equivalent to and as if sworn to under oath. A. Penalties for Nonpayment: A business enterprise who fails to remit the amount of utility tax when due shall, in addition to all other penalties provided by law, pay a penalty of five percent (5%) of the amount of tax due for the first month of delinquency and an additional penalty of five percent (5%) for each succeeding month of delinquency, but not exceeding a total penalty of twenty five percent (25%) of the amount of such taxes due in any event. B. Interest: In addition to such penalties, any late payment of utility tax shall bear interest at the rate of twelve percent (12%) per annum until paid. 5-11-3 DEFINITION OF GROSS INCOME: “Gross income” shall mean the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged, whether received or not) by reason of investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments, however AGENDA ITEM #6. b) ORDINANCE NO. ________ 14 designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages or other evidence of indebtedness, or stocks and the like) and without any deduction on account of the cost of the property sold, cost of materials used, labor costs, interest or discount paid, taxes, or any expenses whatsoever, and without any deduction on account of losses. This definition shall apply as of March 1, 2000. 5-11-5 CELLULAR TELEPHONE SERVICE ALLOCATION AND ADMINISTRATION: A. Allocation of Income, Cellular Telephone Service: 1. Service Address: Payments by a customer for the telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer’s principal service address during the period for which the tax applies. 2. Presumption: There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary. 3. Roaming Phones: When the service is provided while a subscriber is roaming outside the subscriber’s normal cellular network area, the gross income shall be assigned consistent with the taxpayer’s accounting system to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call. AGENDA ITEM #6. b) ORDINANCE NO. ________ 15 4. Dispute Resolution: If there is a dispute between or among the City and another city or cities as to the service address of a customer who is receiving cellular telephone services and the dispute is not resolved by negotiation among the parties, then the dispute shall be resolved by the City and the other city or cities by substituting the issue for settlement to the Association of Washington Cities (AWC). Once taxes on the disputed revenues have been paid to one of the contesting cities, the cellular telephone service company shall have no further liability with respect to additional taxes, penalties, or interest on the disputed revenues so long as it promptly changes its billing records for future revenues to comport with the settlement facilitated by AWC. B. Authority of Administrator: The Administrative Services Administrator is authorized to represent the City in negotiations with other cities for the proper allocation of taxes due under Subsection 5-11-5.A.1. C. Rate Change: No change in the rate of tax upon persons engaging in providing cellular telephone service shall apply to business activities occurring before the effective date of the change and, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax may take effect sooner than sixty (60) days following the enactment of the ordinance establishing the change. The Administrative Services Administrator shall send to each cellular telephone service company, at the address on its license, a copy of any ordinance changing the rate of tax upon cellular telephone service promptly upon its enactment. AGENDA ITEM #6. b) ORDINANCE NO. ________ 16 In computing said tax the business enterprise may deduct in computing gross income the actual amount of credit losses and uncollectibles sustained by the business enterprise, and amounts derived from transactions in interstate and foreign commerce which the City is prohibited from taxing under the laws and Constitution of the United States. 5-11-64 UTILITY TAX RELIEF: There is granted to persons who meet the qualifications and requirements of RMC 5-11-75 relief from the utility tax of the City as follows: A. For all billings paid directly or indirectly by the person during a calendar year for service charges to any organization which paid the utility tax of the City, the City is authorized to pay to such person a “reimbursement” in a maximum amount determined in accordance with RMC 5-11-97; provided, that the total amount of all reimbursements paid pursuant to this subsection shall not exceed the total dollar amount established through the budget process. B. The amount of maximum relief for a calendar year is $110.00 and shall be adjusted for each subsequent year in accordance with RMC 5-11-97, prorated for each month of residency in the City. 5-11-75 UTILITY TAX RELIEF; QUALIFICATIONS: To qualify for the relief set forth in RMC 5-11-64.A, a person must be requesting reimbursement of City utility taxes and must meet the criteria in RMC 8-4-31.C, and have been a resident of the dwelling unit within the City at all times during AGENDA ITEM #6. b) ORDINANCE NO. ________ 17 any period for which a reimbursement is requested, and have contributed to the payment of City utility charges from his or her income or resources. 5-11-86 CLAIM FILING PROCEDURES: A. All claims for relief under RMC 5-11-64 must be filed with the City or its agent no later than the date established by the Administrative Services Administrator (Administrator) for the calendar year for which a “reimbursement” is requested. B. The Administrator shall adopt rules and procedures for the filing of reimbursement claims and for the administration of RMC 5-11-64. 5-11-97 CONSUMER PRICE INDEX CHANGES: The amount of relief established under RMC 5-11-64.B shall be administratively adjusted on January 1st of each year by the Administrative Services Administrator to reflect changes in the cost of living, as defined by the United States Bureau of Labor and Statistics. The amount of maximum relief shall be communicated by the City to potentially eligible citizens. 5-11-108 REBATE FOR INITIAL YEAR: The rebate amount for the initial year shall provide for a full rebate for the calendar year. SECTION III.If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or 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. AGENDA ITEM #6. b) ORDINANCE NO. ________ 18 SECTION IV.This ordinance shall be in full force and effect thirty (30) 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 this _______ day of ___________________, 2019. Jason A. Seth, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2019. Denis Law, Mayor Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD:2078:10/18/19 AGENDA ITEM #6. b) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING GAMBLING TAX PROVISIONS IN SECTIONS 5-8-5, 5-8-8, AND 5-8-16 OF THE RENTON MUNICIPAL CODE, REPEALING SECTION 5-8-17 OF THE RENTON MUNICIPAL CODE, 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 not shown in strikethrough and underline edits remain in effect and unchanged. SECTION II.Sections 5-8-5, 5-8-8, and 5-8-16 of the Renton Municipal Code are amended, and section 5-8-17 of the Renton Municipal Code is repealed, as shown below. All other provisions in RMC 5-8 remain in effect and unchanged. 5-8-5 TAX LEVIED: Pursuant to Chapter 9.46 RCW (Gambling – 1973 act), as it exists or may be amended, there is levied upon all persons, associations and organizations who have been duly licensed by the Gambling Commission, as authorized by law, the following tax: A. For the conduct or operation of any bingo games and raffles, a tax rate of five percent (5%) of the gross receipts received, less the actual net amount awarded as cash or merchandise prizes. No tax shall be imposed on the first ten thousand dollars ($10,000) of gross receipts less the amount awarded as cash or merchandise prizes from bingo games and raffles conducted by any bona fide charitable or nonprofit organization as defined in RCW 9.46.0209 (Bona fide AGENDA ITEM #6. b) ORDINANCE NO. ________ 2 charitable or nonprofit organization), as it exists or may be amended. No tax shall be imposed on the gross receipts from bingo games and raffles conducted by a bona fide charitable or nonprofit organization as defined in RCW 9.46.0209, as it exists or may be amended, whose purpose is to provide programs or facilities for meeting the basic health, education, or welfare needs to residents in Renton and other South King County communities. B. For the conduct or operation of any pulltabs pull tabs and punchboards, as defined in RCW 9.46.0273, as it exists or may be amended, a tax rate of five percent (5%) of the gross receipts from such pulltabs pull tabs and punchboards less the amount awarded as cash or prizes. C. For the conduct or operation of any licensed premises or facility used to play card games, as permitted by the above referenced state law, a tax rate of five hundred dollars ($500.00) annually or ten percent (10%) of the gross receipts or of revenue received from such activity, per establishment, whichever is greater, for the privilege of playing in card games. The minimum fee may be paid on a quarterly basis at the rate of one hundred twenty-five dollars ($125.00) per quarter. Any balance due shall be paid as set forth in RMC 5-8-8, as it exists or may be amended. D. To conduct and operate amusement games, a tax of two percent (2%) of the gross revenue received therefrom less the actual net amount awarded paid for as prizes. No tax shall be imposed on the first five thousand dollars ($5,000) of taxable receipts from amusement games conducted by a bona fide charitable AGENDA ITEM #6. b) ORDINANCE NO. ________ 3 or nonprofit organization as defined in RCW 9.46.0209, as it exists or may be amended. E. (Rep. by Ord. 5414, 10-20-08) 5-8-8 TAX PAYMENT; WHEN DUE, PENALTY: A. The tax imposed by this Chapter shall be due and payable in monthly installments and remittance shall accompany each return made on or before the fifteenth (15th) last day of the month succeeding the month in which the tax accrued. Except, for a person, association or organization that had taxes due in the amount of ten thousand dollars ($10,000) or less in the previous calendar year, the tax imposed by this Chapter shall be due and payable in quarterly installments and remittance shall accompany each return made on or before the thirtieth (30th) last day of the month succeeding the quarterly period in which the tax accrued. B. There shall be added a penalty, for each payment due, if such payment is not made by the due date. Penalties shall be added in accordance with RCW 82.32.090(1) as it now exists or as it may be amended, as follows: 1. A ten percent (10%) penalty, with a minimum of two dollars ($2.00) for the first seventeen (17) calendar days of delinquency. 2. A fifteen percent (15%) penalty, with a minimum of four dollars ($4.00) for a delinquency greater than seventeen (17) calendar days but less than forty (40) calendar days. AGENDA ITEM #6. b) ORDINANCE NO. ________ 4 3. Any delinquency of forty (40) calendar days or more shall be deemed a violation of this Section. 5-8-16 OVERPAYMENT OF TAX ADMINISTRATIVE PROVISIONS: The administrative provisions in RMC 5-26 shall be fully applicable to this chapter. If, upon written application by a taxpayer for a refund, or upon the City’s examination of the returns or records of any taxpayer, it is determined by the Administrator that within two (2) years immediately preceding the application or examination, consistent with RCW 4.16.130 (Action for relief not otherwise provided for), as it exists or may be amended: A. A tax or other fee has been paid in excess of that properly due, the total excess paid over all amounts due the City of Renton within such period of two (2) years shall be credited to the taxpayer’s account or shall be refunded to taxpayer at the taxpayer’s option. B. The right of refund because of overpayment of tax by any taxpayer, if no written application is filed with the Administrator, shall expire two (2) calendar years from the date such payment was made, consistent with RCW 4.16.130, as it exists or may be amended. 5-8-17 UNDERPAYMENT OF TAX: The tax levied under this section shall be additional to any license fee or tax imposed or levied under any law of the City of Renton, except as otherwise expressly provided. AGENDA ITEM #6. b) ORDINANCE NO. ________ 5 A. In accordance with RCW 9.46.110(4), as it exists or may be amended, any tax due and unpaid under this Chapter and all penalties or fees shall become a lien upon personal and real property used in the gambling activity in the same manner as provided for under RCW 84.60.010 (Priority of tax lien), as it exists or may be amended. The lien shall attach on the date the tax becomes due and shall relate back and have priority against real and personal property to the same extent as ad valorem taxes, and constitute a debt to the City of Renton, a municipal corporation, and may be collected by court proceedings the same as any other debt in like amount, which remedy shall be in addition to all other existing remedies. B. A tax or other fee that has been paid which is less than that properly due, or if no tax or other fee has been paid, the Administrator shall mail a statement to the taxpayer showing the balance due, including the tax amount or penalty assessment and fees, and it shall be a separate, additional violation of this Chapter, both civil and criminal, if the taxpayer fails to make payment in full within ten (10) calendar days after such mailed notice. C. The City’s right of recovery from the taxpayer for any tax, if collection action has not yet commenced, shall expire three (3) calendar years from the date said tax became due, unless the City is able to show by a preponderance of the evidence that the taxpayer engaged in fraud, any material misrepresentation, and/or a refusal to comply with a reasonable request for access to or a production of any material or potentially material electronic and AGENDA ITEM #6. b) ORDINANCE NO. ________ 6 other financial record; or the taxpayer executed a written waiver of the expiration date. SECTION III.If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or 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 IV.This ordinance shall be in full force and effect thirty (30) 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 this _______ day of ___________________, 2019. Jason A. Seth, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2019. Denis Law, Mayor Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD:2079:10/16/19 AGENDA ITEM #6. b) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SUBSECTION 5-25-2.J, SECTION 5-25-8, AND SUBSECTION 5-25-10.V, OF THE RENTON MUNICIPAL CODE, AMENDING THE BUSINESS AND OCCUPATION TAX REGULATIONS, 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 not shown in strikethrough and underline edits remain in effect and unchanged. SECTION II.Subsection 5-25-2.J of the Renton Municipal Code is amended as follows: J. Engaging in business: 1. The term “engaging in business” means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators hold themselves out to the public as conducting such business. 2. This section sets forth examples of activities that constitute engaging in business in the City, and establishes safe harbors for certain activities so that a person who meets the criteria may engage in de minimus minimis business activities in the City without having to register and obtain a business license or pay City business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of “engaging in business” in subsection 1. If an activity is not listed, whether it constitutes AGENDA ITEM #6. b) ORDINANCE NO. ________ 2 engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law. 3. Without being all-inclusive, any one of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker or another person acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license: a. Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City. b. Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the City. c. Soliciting sales. d. Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance. e. Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. f. Installing, constructing, or supervising installation or construction of, real or tangible personal property. g. Soliciting, negotiating, or approving franchise, license, or other similar agreements. AGENDA ITEM #6. b) ORDINANCE NO. ________ 3 h. Collecting current or delinquent accounts. i. Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. j. Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property. k. Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians. l. Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. m. Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for customers or potential customers. n. Investigating, resolving, or otherwise assisting in resolving customer complaints. o. In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. AGENDA ITEM #6. b) ORDINANCE NO. ________ 4 p. Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another person acting on its behalf. q. Accepting or executing a contract with the City, irrespective of whether goods or services are delivered within or without the City, or whether the person’s office or place of business is within or without the City. 4. If a person, or its employee, agent, representative, independent contractor, broker or another person acting on the person’s behalf, engages in no other activities in or with the City but the following, it need not register and obtain a business license and pay tax: a. Meeting with suppliers of goods and services as a customer. b. Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions. c. Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. This provision does not apply to any board of director member or attendee engaging in business such as a member of a board of directors who attends a board meeting. d. Renting tangible or intangible property as a customer when the property is not used in the City. AGENDA ITEM #6. b) ORDINANCE NO. ________ 5 e. Attending, but not participating in a “trade show” or “multiple vendor events”. Persons participating at a trade show shall review RMC Chapter 5-22, Special Event Permits. f. Conducting advertising through the mail. g. Soliciting sales by phone from a location outside the City. 5. A seller located outside the City merely delivering goods into the City by means of common carrier is not required to register and obtain a business license, provided that it engages in no other business activities in the City. Such activities do not include those in subsection 4. The City expressly intends that engaging in business includes any activity sufficient to establish nexus for purposes of applying the tax under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus generating contact or subsequent contacts. SECTION III.Section 5-25-8 of the Renton Municipal Code is amended as follows: 5-25-8 ALLOCATION AND APPORTIONMENT OF INCOME WHEN ACTIVITIES TAKE PLACE IN MORE THAN ONE JURISDICTION: Gross income, other than persons subject to the provisions of RCW Chapter 82.14.A, shall be allocated and apportioned as follows: A. Gross income derived from all activities other than those taxed as service or royalties under RMC 5-25-4.A.7 shall be allocated to the location where the activity takes place. AGENDA ITEM #6. b) ORDINANCE NO. ________ 6 B. In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs. C. In the case of sales of digital products, the activity takes place where delivery to the buyer occurs. The delivery of digital products will be deemed to occur at: 1.The seller’s place of business if the purchaser receives the digital product at the seller’s place of business; 2. If not received at the seller’s place of business, the location where the purchaser or the purchaser’s donee, designated as such by the purchaser, receives the digital product, including the location indicated by instructions for delivery to the purchaser or donee, known to the seller; 3. If the location where the purchaser or the purchaser’s donee receives the digital product is not known, the purchaser’s address maintained in the ordinary course of the seller’s business when use of this address does not constitute bad faith; 4.If no address for the purchaser is maintained in the ordinary course of the seller’s business, the purchaser’s address obtained during the consummation of the sale, including the address of a purchaser’s payment instrument, if no other address is available, when use of this address does not constitute bad faith; and 5.If no address for the purchaser is obtained during the consummation of the sale, the address where the digital good or digital code is first made AGENDA ITEM #6. b) ORDINANCE NO. ________ 7 available for transmission by the seller or the address from which the digital automated service or service described in RCW 82.04.050(2)(g) or (6)(b) was provided, disregarding for these purposes any location that merely provided the digital transfer of the product sold. D.If none of the methods in RMC 5-25-8.C for determining where the delivery of digital products occurs are available after a good faith effort by the taxpayer to apply the methods provided in RMC 5-25-8.C.1 through 5, then the City and the taxpayer may mutually agree to employ any other method to effectuate an equitable allocation of income from the sale of digital products. The taxpayer will be responsible for petitioning the City to use an alternative method under RMC 5-25-8.D. The City may employ an alternative method for allocating the income from the sale of digital products if the methods provided in RMC 5-25-8.C.1 through 5 are not available and the taxpayer and the City are unable to mutually agree on an alternative method to effectuate an equitable allocation of income from the sale of digital products. E.For purposes of RMC 5-25-8.C.1 through 5, the following definitions apply: 1. “Digital automated services,” “digital codes,” and “digital goods” have the same meaning as in RCW 82.04.192; 2. “Digital products” means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050 (2)(g) and (6)(c); and AGENDA ITEM #6. b) ORDINANCE NO. ________ 8 3. “Receive” has the same meaning as in RCW 82.32.730. F. Effective January 1, 2020, Ggross income derived from activities taxed as services and other activities taxed under RMC 5-25-4.A.7 shall be apportioned to the City by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service-income factor and the denominator of which is two (2). 1. The payroll factor is a fraction, the numerator of which is the total amount paid in the City during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period. Compensation is paid in the City if: a. The individual is primarily assigned within the City; b. The individual is not primarily assigned to any place of business for the tax period and the employee performs fifty percent (50%) or more of his or her service for the tax period in the City; or c. The individual is not primarily assigned to any place of business for the tax period, the individual does not perform fifty percent (50%) or more of his or her service in any city and the employee resides in the City. 2. The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the City during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period. Service income is in the City if: the customer location is in the City. AGENDA ITEM #6. b) ORDINANCE NO. ________ 9 3. Gross income of the business from engaging in an apportionable activity must be excluded from the denominator of the service income factor if, in respect to such activity, at least some of the activity is performed in the City, and the gross income is attributable under subsection F.2 to a city or unincorporated area of a county within the United States or to a foreign country in which the taxpayer is not taxable. For purposes of this subsection F.3, "not taxable" means that the taxpayer is not subject to a business activities tax by that city or county within the United States or by that foreign country, except that a taxpayer is taxable in a city or county within the United States or in a foreign country in which it would be deemed to have a substantial nexus with the city or county within the United States or with the foreign country under the standards in RCW 35.102.050 regardless of whether that city or county within the United States or that foreign country imposes such a tax. a. The customer location is in the City; or b. The income-producing activity is performed in more than one (1) location and a greater proportion of the service-income-producing activity is performed in the City than in any other location, based on costs of performance, and the taxpayer is not taxable at the customer location; or c. The service-income-producing activity is performed within the City, and the taxpayer is not taxable in the customer location. 34. If the allocation and apportionment provisions of this subsection F do not fairly represent the extent of the taxpayer’s business activity in the City or AGENDA ITEM #6. b) ORDINANCE NO. ________ 10 cities in which the taxpayer does business, the taxpayer may petition for or the tax administrators may jointly require, in respect to all or any part of the taxpayer’s business activity, that one (1) of the following methods be used jointly by the cities to allocate or apportion gross income, if reasonable may require, in respect to all or any part of the taxpayer’s business activity, if reasonable: a. Separate accounting; b. The use of a single factor exclusion of any one (1) or more of the factors; c. The inclusion of one (1) or more additional factors that will fairly represent the taxpayer’s business activity in the City; or d. The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income. 5. The party petitioning for, or the tax administrator requiring, the use of any method to effectuate an equitable allocation and apportionment of the taxpayer's income pursuant to subsection F.4.d must prove by a preponderance of the evidence: a. That the allocation and apportionment provisions of this subsection F do not fairly represent the extent of the taxpayer's business activity in the City; and b. That the alternative to such provisions is reasonable. The same burden of proof shall apply whether the taxpayer is petitioning for, or the tax administrator is requiring, the use of an alternative, reasonable AGENDA ITEM #6. b) ORDINANCE NO. ________ 11 method to effectuate an equitable allocation and apportionment of the taxpayer's income. 6. If the tax administrator requires any method to effectuate an equitable allocation and apportionment of the taxpayer's income, the tax administrator cannot impose any civil or criminal penalty with reference to the tax due that is attributable to the taxpayer's reasonable reliance solely on the allocation and apportionment provisions of this subsection F. 7. A taxpayer that has received written permission from the tax administrator to use a reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income shall not have that permission revoked with respect to transactions and activities that have already occurred unless there has been a material change in, or a material misrepresentation of, the facts provided by the taxpayer upon which the tax administrator reasonably relied in approving a reasonable alternative method. G. The definitions in this subsection apply throughout this section: 1. “Apportionable income” means the gross income of the business taxable under the service classifications of a city’s gross receipts tax, including income received from activities outside the City if the income would be taxable under the service classification if received from activities within the City, less any exemptions or deductions available. 2. "Business activities tax" means a tax measured by the amount of, or economic results of, business activity conducted in a city or county within the AGENDA ITEM #6. b) ORDINANCE NO. ________ 12 United States or within a foreign country. The term includes taxes measured in whole or in part on net income or gross income or receipts. "Business activities tax" does not include a sales tax, use tax, or a similar transaction tax, imposed on the sale or acquisition of goods or services, whether or not denominated a gross receipts tax or a tax imposed on the privilege of doing business. 23. “Compensation” means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual’s gross income under the federal internal revenue code. 4. "Customer" means a person or entity to whom the taxpayer makes a sale or renders services or from whom the taxpayer otherwise receives gross income of the business. 3. “Individual” means any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer. 45. “Customer location” means the following: city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place. a. For a customer not engaged in business, if the service requires the customer to be physically present, where the service is performed. b. For a customer not engaged in business, if the service does not require the customer to be physically present: AGENDA ITEM #6. b) ORDINANCE NO. ________ 13 i. The customer's residence; or ii. If the customer's residence is not known, the customer's billing/mailing address. c. For a customer engaged in business: i. Where the services are ordered from; ii. At the customer's billing/mailing address if the location from which the services are ordered is not known; or iii.At the customer's commercial domicile if none of the above are known. 6. “Individual” means any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer. 57. “Primarily assigned” means the business location of the taxpayer where the individual performs his or her duties. 68. “Service-taxable income” or “service income” means gross income of the business subject to tax under either the service or royalty classification. 79. “Tax period” means the calendar year during which tax liability is accrued. If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year. AGENDA ITEM #6. b) ORDINANCE NO. ________ 14 8. “Taxable in the customer location” means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax regardless of whether, in fact, the government does so. H. Assignment or apportionment of revenue under this section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable. SECTION IV.Subsection 5-25-10.V of the Renton Municipal Code is amended as follows: V. Amounts Derived From Manufacturing, Selling or Distributing Motor Vehicle Fuel: This chapter shall not apply to the manufacturing, selling or distributing motor vehicle fuel, as the term “motor vehicle fuel” is defined in RCW 82.36.010 82.38.020 and exempted under RCW 82.36.440 82.38.280, provided that any fuel not subjected to the state fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter. SECTION V.If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or 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. AGENDA ITEM #6. b) ORDINANCE NO. ________ 15 SECTION VI.This ordinance shall be in full force and effect thirty (30) 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 this _______ day of ___________________, 2019. Jason A. Seth, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2019. Denis Law, Mayor Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD:2080:10/18/19 AGENDA ITEM #6. b) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SUBSECTIONS 5-26-6.A AND 5-26-6.D OF THE RENTON MUNICIPAL CODE, BY UPDATING REGULATIONS IN ACCORDANCE WITH THE TAX ADMINISTRATIVE CODE MODEL ORDINANCE, 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 not shown in strikethrough and underline edits remain in effect and unchanged. SECTION II.Subsections 5-26-6.A and 5-26-6.D of the Renton Municipal Code are amended as shown below. All remaining provisions in 5-26-6 remain in effect and unchanged. 5-26-6 WHEN DUE AND PAYABLE – REPORTING PERIODS – MONTHLY, QUARTERLY, AND ANNUAL RETURNS – THRESHOLD PROVISIONS OR RELIEF FROM FILING REQUIREMENTS – COMPUTING TIME PERIODS – FAILURE TO FILE RETURNS: A. Except as provided in RMC 5-5-3.C, taxes or fees imposed by Chapters 5- 5, 5-6, 5-7, 5-8, 5-11, and 5-25 shall be due and payable in quarterly installments. At the Administrator’s discretion, businesses may be assigned to a monthly or annual reporting period depending on the tax amount owing or type of tax. Until December 31, 2020, tTax returns and payments are due on or before the last day of the next month following the end of the assigned reporting period covered by the return. Effective January 1, 2021, tax returns and payments are due on or before the time as provided in RCW 82.32.045(1), (2), and (3). AGENDA ITEM #6. b) ORDINANCE NO. ________ 2 B. Taxes and fees shall be paid as provided in this chapter and accompanied by a return on forms as prescribed by the Administrator. The return shall be signed by the taxpayer personally or by a responsible officer or agent of the taxpayer. The individual signing the return shall swear or affirm that the information in the return is complete and true to the best of their belief and knowledge. C. Tax returns must be filed and tax must be paid by the due date. The tax return must be filed whether or not any tax is owed. Returns not received on or before the due date are subject to penalties and interest in accordance with this chapter, in addition to any other civil or criminal sanction or remedy that may be available. D. For purposes of the tax imposed by Chapter 5-25, any person whose value of products, gross proceeds of sales, or gross income of the business, subject to tax after all allowable deductions, is equal to or less than Five Hundred Thousand dollars ($500,000) in the current reporting year, shall file a return, declare no tax due under Chapter 5-25 on their return, and submit the return to the Administrator. The gross receipts and deduction amounts shall be entered on the tax return even though no tax may be due. E. Notwithstanding subsection A of this section, the Administrator may relieve any person of the requirement to file returns if the person meets exemption criteria under RMC 5-25-10. AGENDA ITEM #6. b) ORDINANCE NO. ________ 3 F. A taxpayer that commences to engage in business activity shall file a return and pay the tax or fee for the portion of the reporting period during which the taxpayer is engaged in business activity. G. Except as otherwise specifically provided by any other provision of this chapter, in computing any period of days prescribed by this chapter the day of the act or event from which the designated period of time runs shall not be included. The last day of the period shall be included unless it falls on a Saturday, Sunday, or City or federal legal holiday, in which case the last day of such period shall be the next succeeding day which is neither a Saturday, Sunday, or city or federal legal holiday. H. If any taxpayer fails, neglects or refuses to make a return as and when required in this chapter, the Administrator is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the Administrator’s estimate of the tax or fees due. Such assessment shall be deemed prima facie correct and shall be the amount of tax owed to the City by the taxpayer. The Administrator shall notify the taxpayer by mail in writing of the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. The cost to the City, whether in staff time, or the use of professionals hired by the City, of researching and calculating such tax or fee shall be added to the taxpayer’s assessment and paid by the taxpayer. AGENDA ITEM #6. b) ORDINANCE NO. ________ 4 SECTION III.If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or 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 IV.This ordinance shall be in full force and effect thirty (30) 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 this _______ day of ___________________, 2019. Jason A. Seth, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2019. Denis Law, Mayor Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD:2081:10/18/19 AGENDA ITEM #6. b) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING CHAPTER 5-5 OF THE RENTON MUNICIPAL CODE, BY ADDING A NEW SECTION 5-5-7, REFUND OF LICENSE FEE, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE. THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I.Chapter 5-5 of the Renton Municipal Code is amended to add a new section 5-5-7, Refund of License Fee, to read as shown below. All other provisions in chapter 5- 5 remain in effect and unchanged. 5-5-7 REFUND OF LICENSE FEE: A. Revocation: Upon revocation, suspension, or denial of any license as provided in this chapter, no portion of the license fee shall be returned to the licensee. B. License Application Withdrawn: Upon a licensee’s request to withdraw their initial application, the fee paid shall be returned to the applicant by the City, together with notice that the application has been withdrawn; provided that, no refund shall be made where the applicant has engaged in the business activity for which the license was intended, or where inspection has been performed by any City department to review said license application. C. Overpayment: If, upon request by a licensee for a refund, and if it is determined by the Administrator that a fee has been paid in excess of that properly due, the excess amount paid shall be credited to the licensee’s account or shall be refunded to the licensee; however, no refund or credit shall be AGENDA ITEM #6. b) ORDINANCE NO. ________ 2 allowed for any payment made more than four (4) years before the date of such request. SECTION II.If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or 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 thirty (30) 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 this _______ day of ___________________, 2019. Jason A. Seth, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2019. Denis Law, Mayor Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD:2075:8/23/19 AGENDA ITEM #6. b) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 5-6-1 OF THE RENTON MUNICIPAL CODE, AMENDING ADMISSION TAX REGULATIONS, 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 not shown in strikethrough and underline edits remain in effect and unchanged. SECTION II.Section 5-6-1 of the Renton Municipal Code is amended as follows: CHAPTER 6 ADMISSION TAX SECTION: 5-6-1: Admission Tax 5-6-1 ADMISSION TAX: In addition to the license fees provided elsewhere in this Title, there is hereby levied an admission tax within the scope of RCW 35.21.280 as follows. Unless otherwise provided in this Section, tThe term “admission charge” or “general admission charge” shall mean the regular and customary charge for the right or privilege to attend or be admitted to the business location within the City of Renton. A. Admission Tax: 1. Tax Imposed: There is hereby imposed and levied upon every person who pays an admission charge to any place within the City limits of the City of AGENDA ITEM #6. b) ORDINANCE NO. ________ 2 Renton, a tax equal to five percent (5%) on each such admission charge. The tax is imposed on the amount of the admission charge actually paid by the person. 2. Exemption: The tax imposed by this Section shall not apply to elementary and secondary school activities as specified in RCW 35.21.280. A. Admission Tax on Horse Racing: 1. Percentage Tax: There is hereby imposed and levied upon every person who pays an admission charge to a horse racing event within the City limits of the City of Renton, a tax equal to five percent (5%) on each such admission charge, including Turf Club memberships effective as of January 1, 1991. 2. Filing of Statement and Payment of the Tax: Every business enterprise conducting or engaging in the horse racing business, as above specified, and imposing a charge for admission within the City limits of the City, shall on or before January 1 of each year file with the Finance Director a statement signed and sworn to by the business enterprise indicating the total amount of paid admission charges collected by such business enterprise during the last preceding twelve (12) month period, as well as all taxable admissions made free of charge. A remittance for the amount of any unpaid admission tax levied by this Chapter shall accompany the statement. During the racing season, monthly reports of the admissions, together with the tax levied shall be filed. B. Admission Tax on Theaters: AGENDA ITEM #6. b) ORDINANCE NO. ________ 3 1. Admission Tax on Theaters: There is hereby imposed and levied upon every person who pays an admission charge to a commercial theater regularly exhibiting motion picture films within the City of Renton, a tax of five percent (5%) of each admission charge effective as of January 1, 1991. 2. Admission Tax on Other Events: For the operation and conduct of all other events (including, but not limited to, professional sporting events and musical events) there is hereby imposed and levied upon every person who pays such an admission charge a tax equal to five percent (5%) on each such admission charge. 3. Filing of Statement and Payment of the Tax: Business enterprises subject to collection and payment of admission taxes, except for horse racing business enterprises, shall quarterly, on or before April 30 (1st quarter), July 31 (2nd quarter), October 31 (3rd quarter) and January 31 (4th quarter) of each year, file with the Finance Director a statement signed and sworn to by said business enterprise indicating the total amount of paid admission charges collected by such business enterprise during each quarter of the year. A remittance for the amount of the admission tax levied by this Section shall accompany each statement. 4. Exemption: The tax imposed by this Section is levied pursuant to RCW 35.21.280 and shall not apply to school activities as specified therein. CB. Collection of Tax: The admission tax imposed under this Chapter Section shall be collected at the time the admission charge is paid. Every person AGENDA ITEM #6. b) ORDINANCE NO. ________ 4 receiving an admission charge upon which an admission tax is levied under this Section Chapter shall collect the amount of the tax imposed upon the person paying an admission charge. Such admission tax shall be deemed to be held in trust by the person required to collect the same until remitted to the Administrative Services Administrator Finance Director as hereinafter provided specified in chapter 5-26. D. Inspection of Records: The Finance Director, either personally or through his authorized agents, shall have the right to inspect and examine the records of every business enterprise subject to the taxes imposed by this Chapter and all such records shall be retained for and be available for such inspection for a period of five (5) years. EC. Liens for Unpaid Taxes: Any and all taxes and payments due and unpaid under this Chapter Section shall be a debt to the City of Renton, and shall be a personal obligation of the taxpayer and shall be a lien upon all the properties of the taxpayer. Said lien shall have priority over all other liens and obligations except those to the State of Washington and the United States government. Said lien shall be enforced by the Administrative Services Administrator Finance Director as any other lien would be enforced against the defaulting debtor. D. All other administrative provisions from RMC 5-26 shall be fully applicable to this Section. F. Penalties for Nonpayment: A taxpayer who fails to remit the amount of the taxes when due shall, in addition to all other penalties provided by law, pay a AGENDA ITEM #6. b) ORDINANCE NO. ________ 5 penalty of five percent (5%) of the amount of tax due for the first month of delinquency and an additional penalty of five percent (5%) for each succeeding month of delinquency, but not exceeding a total penalty of twenty five percent (25%) of the amount of such taxes due in any event. G. Rules and Regulations: The Finance Director shall have power to adopt rules and regulations not inconsistent with the terms of this Chapter for the purpose of carrying out and enforcing the payment of the tax herein levied. A copy of such rules and regulations shall be on file and available for public examination in the office of the Finance Director. Failure or refusal to comply with any rules and regulations promulgated under this Section shall be deemed a violation of this Chapter. H. Overpayment of License Tax: Whenever the taxpayer has made an overpayment and within two (2) years after date of such overpayment, upon submission of proof thereof, makes application for refund or credit of the overpayment such refund or credit shall be allowed. Any such refund made shall be drawn from the general fund when so approved by the Finance Director. I. Application and Returns – Public Record: Returns made to the Finance Director pursuant to this Chapter shall be public information and subject to inspection by all persons except to the extent those records may be deemed to be private or would result in unfair competitive disadvantage to such a taxpayer if disclosed as more particularly defined in title 42.17 RCW. AGENDA ITEM #6. b) ORDINANCE NO. ________ 6 J. Violation and Penalties: Every business enterprise violating or failing to comply with any provision of this Chapter or any lawful rule or regulation adopted by the Finance Director pursuant thereto, upon conviction thereof, shall be punished by a fine not exceeding five hundred dollars ($500.00) or by imprisonment in the City jail for a term not to exceed ninety (90) days, or by both such fine and imprisonment. SECTION III.If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or 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 IV.This ordinance shall be in full force and effect thirty (30) 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 this _______ day of ___________________, 2019. Jason A. Seth, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2019. Denis Law, Mayor AGENDA ITEM #6. b) ORDINANCE NO. ________ 7 Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD:2076:9/18/19 AGENDA ITEM #6. b) AB - 2459 City Council Regular Meeting - 28 Oct 2019 SUBJECT/TITLE: Ordinance Amending Parks Commission Regulations RECOMMENDED ACTION: Refer to Community Services Committee DEPARTMENT: Community Services Department STAFF CONTACT: Kelly Beymer, Community Services Administrator EXT.: 6617 FISCAL IMPACT SUMMARY: N/A SUMMARY OF ACTION: The proposed Ordinance 2064 updates Municipal Code Title 2, Chapter 9, aligns the Parks Commission's regulations with current practice. This ordinance removes the Parks Commission authority to establish policy for parks and recreation activities, receive monies or property for parks and recreation, and grant concessions or privileges within parks and recreation areas. The ordinance also reduces the numb er of members to seven by removing the designation of a member under 21 years of age and removes the commission's role to recommend, in conjunction with the Community Administrator, candidates for Parks Director or Recreation Director. EXHIBITS: A. Draft Ordinance STAFF RECOMMENDATION: Approve the ordinance amending Parks Commission regulations. AGENDA ITEM #6. c)   1  CITY OF RENTON, WASHINGTON    ORDINANCE NO. ________    AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTIONS  2‐9‐3, 2‐9‐4, 2‐9‐5, 2‐9‐6, AND 2‐9‐7 OF THE RENTON MUNICIPAL CODE, BY  REVISING PARKS COMMISSION REGULATIONS RELATED TO FUNCTION,  MEMBERS, AND TERM; ALIGNING PARKS COMMISSION REGULATIONS WITH  CURRENT PRACTICE; 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 not shown in  strikethrough and underline edits remain in effect and unchanged.  SECTION II. Sections 2‐9‐3, 2‐9‐4, 2‐9‐5, 2‐9‐6, and 2‐9‐7 of the Renton Municipal Code  are amended as shown below. All other provisions in Chapter 2‐9 remain in effect and  unchanged.  2‐9‐3 FUNCTION:  A.    The Parks Commission shall establish recommend policy to conduct any  form of recreation or cultural activity that will employ the leisure time of the  people in a constructive and wholesome manner, including recommending policy  to control and supervise all parks belonging to the City.  B.    In conjunction with the Mayor and City Council, Tthe Parks Commission  shall advise the City on the may planning, promoteion, management,  construction, development, maintainenance and operateion, either within or  without the City limits, of parks, play and recreational grounds and/or other  AGENDA ITEM #6. c) ORDINANCE NO. ________  2  municipally owned recreation facilities, including community buildings and  improvement and ornament of the same.  C.    The Parks Commission shall receive, in the name of the City, all monies or  other property donated by individuals or groups for the improvement of parks and  other recreational areas. The Commission reserves the right to reject any such  donations, subject to the approval of the Council, in the event that any such  donation be considered improper, unlawful or contrary to the purposes as set  forth. Any cash received by the Commission on behalf of the City shall be forthwith  paid to the Administrator of the Administrative Services Department and same  shall be placed in the Park Fund.   D.    The Parks Commission is authorized to grant concessions and privileges  within the parks and recreational areas, under such restrictions, and for such  compensation as it shall prescribe, and any monies or properties paid thereunder  shall be turned over to the Administrator of the Administrative Services  Department. Such revenue shall be used for park purposes only. Any party  aggrieved by the Commission in granting or denying such concession and  privileges shall have the right of appeal to the Council within thirty (30) days of  such action by the Commission. No concession shall be granted for a period of  more than five (5) years, with the right for an extension for an additional five (5)  year period of time, should the Commission deem it advisable, and then only upon  condition that the concessionaire fulfill all conditions and provisions of the original  five (5) year concession contract.   AGENDA ITEM #6. c) ORDINANCE NO. ________  3  E.    The Commission shall not have the power to acquire any property, by gift  or otherwise, without the consent of the Council and any properties so received  and acquired shall be in the name of the City.   2‐9‐4 APPOINTMENT; MEMBERS:  The Parks Commission shall consist of eight seven (87) members, who shall be  residents of the City of Renton, one of whom shall be under 21 years of age at the  time of appointment, who shall be appointed by the Mayor, subject to the  confirmation by a majority of the members of the City Council. No cCommissioner  shall receive any compensation for his or her service whatsoever except for  reimbursement of actual expenditures duly authorized by the City Council.   2‐9‐5 TERM:  A. The term of each cCommissioner so appointed shall be for a period of four  (4) years from the date of such appointment. Such term shall also apply to  incumbent Commissioners and each Commissioner shall serve until his or her  successor has been appointed and duly qualified. The terms of office shall begin  on the first Monday in June. At the expiration of each cCommissioner’s term, the  Mayor shall appoint, subject to confirmation or concurrence of by a majority of  the members of the City Council members, a successor cCommissioner, if the  commissioner, whose term has expired, is not recommended for reappointment.  B. Members of the Parks Commission may be removed at any time by the  appointing authority and vacancies for the remainder of unexpired terms shall be  filled in the same manner as the original appointment. Three unexcused absences  AGENDA ITEM #6. c) ORDINANCE NO. ________  4  in a one‐year period of time shall result in automatic removal of the a  Ccommissioner. The Parks Commission shall, by a majority vote, elect one of its  members to be President chairperson thereof and may appoint such other officers  as may be deemed necessary by them.   2‐9‐6 COMMISSION AUTHORITY:  The Parks Commission shall have the authority to propose rules and regulations  for the operation, management and maintenance of parks and other recreational  facilities, including recommendations to the City Council to fix charges for   regarding the use of any municipally owned or controlled park or recreational  facilities.   2‐9‐7 APPOINTMENT, QUALIFICATIONS, AND DUTIES OF PARKS DIRECTOR AND  RECREATION DIRECTOR EX OFFICIO MEMBER AND STAFF LIAISON:  A.   When there is a vacancy in the position of Parks Director or Recreation  Director, the Parks Commission, in conjunction with the Community Services  Administrator, shall recommend one or more qualified candidates for the  positions of Parks Director or Recreation Director to the Mayor for consideration  for an appointment to that position. The Mayor shall appoint a candidate to the  position of Parks Director or Recreation Director, or may reject the  recommendations of the Parks Commission, and ask for additional names to be  submitted. The Mayor shall not appoint a Parks Director or Recreation Director  without that individual’s name having been recommended by the Parks  AGENDA ITEM #6. c) ORDINANCE NO. ________  5  Commission. The person that the Mayor appoints to the position of Parks Director  or Recreation Director shall be subject to confirmation by the City Council.  B.    The qualifications and duties for the positions of Parks Director and  Recreation Director shall be established by the Human Resources Department of  the City with the concurrence of the Parks Commission.  AC.  The Community Services Administrator may appoint a designee to The  Parks Director or Recreation Director may serve as an ex officio member of the  Parks Commission, but such designee shall have no vote thereon.       B.  The designee appointed pursuant to RMC 2‐9‐7.A This individual shall serve  as the be the liaison or staff liaison support to the Parks Board Commission.  D.    The salaries of the Parks Director or Recreation Director shall be as fixed  in the annual budget of the City.   SECTION III. If any section, subsection, sentence, clause, phrase or work of this  ordinance should be held to be invalid or unconstitutional by a court or 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 IV. This ordinance shall be in full force and effect thirty (30) 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 this _______ day of ___________________, 2019.                         Jason A. Seth, City Clerk  AGENDA ITEM #6. c) ORDINANCE NO. ________  6    APPROVED BY THE MAYOR this _______ day of _____________________, 2019.                         Denis Law, Mayor    Approved as to form:             Shane Moloney, City Attorney  Date of Publication:      ORD:2064:8/14/19:scr    AGENDA ITEM #6. c) AB - 2479 City Council Regular Meeting - 28 Oct 2019 SUBJECT/TITLE: Renewal of Healthcare Management Administrators (HMA) contract for 2020 RECOMMENDED ACTION: Refer to Finance Committee DEPARTMENT: Human Resources / Risk Management Department STAFF CONTACT: Ellen Bradley-Mak, Administrator EXT.: X7657 FISCAL IMPACT SUMMARY: Expenditure required: $306,500 Amount Budgeted: $306,500 This amount includes coverage for active employees and LEOFF 1 retirees. SUMMARY OF ACTION: The fee schedule for HMA's services have been revised, with a 2.5% increase for 2020. The contract is otherwise unchanged. Fees include HMA administrative services for claims on the City’s self -insured medical, dental and vision plans, and the rights to use the Regence Preferred Provider Network, large case management, COBRA and HIPAA Administration services. Funds for these services were included in the 2020 budget. EXHIBITS: A. HMA employee fee schedule for 2020 B. HMA administrative fee summary for 2020 STAFF RECOMMENDATION: Approve the 2020 HMA Administrative Services Agreement Fee Schedule for medical and dental claims administration by HMA, and authorize the Mayor and City Clerk to sign the implementing HMA contract documents when ready. AGENDA ITEM #6. d) HMA CLIENT INTENT & EXHIBIT A SCHEDULE OF FEES F or City of Renton 4034/5034 1/1/2020 through 12/31/2020 Renewal Account Information Group Name: City of Renton 4034/5034 Group#(s): #4034 / 5034 Group Size: 656 Employees 1,567 Members Network: HMA Contract Period: 1 year Enrollment Type: Web Open Enrollment: Changes Only Open Enrollment Period: Broker (firm): USI Insurance Services LLC - Seattle Contact Info Name Phone# Email Broker Contact: Mark Esteb (206) 676-7447 Mark.esteb@usi.com Broker Contact: Tony Ciez (206) 577-5592 Tony.Ciez@usi.com Broker Contact: Kassie Radwick (206) 577-6825 Kassie.radwick@usi.com Acct. Manager Cole Harrison (425)-289-5236 cole.harrison@accesstpa.com AGENDA ITEM #6. d) HMA Client Intent & TPA Exhibit A - City of Renton 4034/5034 Page 2 of 8 9/25/2019 Locations Check the box to the left of locations you wish to remove or change. ☐ ACT (Active) ☐ COBR (COBRA) ☐ Benefit Information and Change Requests Medical Benefits Please review and indicate desired changes. If you have changes for more than 6 plans, attach a list to your email when you send this form back to {Brand}. If you don’t need changes to any of the below benefit levels, skip to the next section. Preferred (P) Participating (N) Out-of-network (M) 4034A 4034ACTIVE Deductible NONE NONE NONE CHANGES (if any): Out-of-pocket maximum $500 Individual $875 Family $500 Individual $875 Family $500 Individual $875 Family CHANGES (if any): Copay - Doctor’s Office Visit $30 Co-Pay Paid 100% $30 Co-Pay Paid 100% $30 Co-Pay Paid 100 % CHANGES (if any): Apply all co-pays to OOPM & remove co-pay for In-Network Preventive Care Preferred (P) Participating (N) Out-of-network (M) 5034LR 5034LEOFF I Deductible NONE NONE NONE CHANGES (if any): Out-of-pocket maximum N/A N/A N/A CHANGES (if any): Copay - Doctor’s Office Visit Paid 100% Paid 100% Paid 100% CHANGES (if any): AGENDA ITEM #6. d) HMA Client Intent & TPA Exhibit A - City of Renton 4034/5034 Page 3 of 8 9/25/2019 Vendors Below are the vendors you contract with. Indicate any changes in the textboxes in the right column. Current Vendor Specify changes Care Navigator HMA Terminate 12/31/19 CDHP* N/A COBRA HMA Dental HMA Dialysis N/A Fiduciary City of Renton Maternity N/A PBM Costco Health Solutions StopLoss Symetra Telehealth MDLive Vision Hardware HMA *Consumer-driven Health Plan (CDHP), e.g. HRA, FSA, etc F ees Rates for the contracted time period apply to services administered by HMA. Fees for outside vendors are subject to change at any time. HMA fees and commissions may remain in effect beyond the above-stated term until changed by mutual written agreement of the parties. Claim Administrative Fees Fee Description $22.80 PEPM for Medical Plan Administration Includes Pharmacy Interface + Integrated OOP Maximum/QHDHP Administration If all documents are signed and returned by 11/1/2019, the new PEPM with discount (-$0.20) will be $22.60 Paid direct - USI / City of Renton Broker Commission Fee payable to USI Insurance Services LLC - Seattle $3.75 PEPM Care Management Base Services 30% of savings Claims Negotiation, Hospital Bill Audit, and Out-of-Network Claim Re-pricing Services as outlined in TPA Agreement Section 4 27% of Recovered Funds Subrogation Services as outlined in Section 4(k) of Exhibit B The plan will receive 73% of recovered funds. Of the remaining, 22% is retained by PHIA, and 5% is retained by HMA.* *In the event of litigation to enforce the Plan’s right of recovery, PHIA’s fee will increase to 33.3% and shall not retain any compensation. 10 -18% of recovered amount charged as contingency fee Overpayment Prevention & Recovery as outlined in Section 4(k) of Exhibit B o 16%-18% recovery fee retained by Accent* o 10% of savings identified via COB Smart AGENDA ITEM #6. d) HMA Client Intent & TPA Exhibit A - City of Renton 4034/5034 Page 4 of 8 9/25/2019 30% of savings charged as contingency fee Fraud, Waste, and Abuse as outlined in Section 4(k) of Exhibit B o 17.5% of savings retained by Change Healthcare Solutions o 12.5% administrative allowance retained by HMA *Note, the contingency fee charged by Accent varies based on the age of the underlying claim. In no instance will the total fee to the Plan exceed 20% of the amount recovered. Additional Services Review the below services and indicate desired changes. No changes? No need to indicate anything! Current Delete Add Service Description & Cost $3.25 PEPM ☐ ☒ $3.25 PEPM for Dental Plan Administration $1.50 PEPM ☐  $1.50 PEPM for HMA National Dental Network Access (In addition to the Dental Plan Administration fees) $0.65 PEPM ☐ ☒ $0.65 PEPM Vision Hardware Administration $1.35 PEPM COBRA Services (Select those you want to add) ☐ ☒ Medical/Rx $1.35 PEPM ☐ ☒ Vision ☐ ☒ Dental ☐ ☐ FSA administered by HMA HealthEquity ☐ ☐ Flexible Spending Account (FSA) administration $500 annual fee Annual fee invoiced through HealthEquity Employer Portal. $3.95 Per Account Per Month (PAPM) Visa card: Up to 2 FREE and additional or replacement cards at $10 per card ***FSA and HRA are purchased only, 1 fee applies at $3.95 PAPM ☐ ☐ Limited Purpose FSA (LPFSA) administration $500 annual fee Annual fee invoiced through HealthEquity Employer Portal. $1.95 Per Account Per Month (PAPM) Visa card: Up to 3 FREE and additional or replacement cards at $5 per card (No set-up fees) ***Limited Purpose FSA (LPFSA) can be added only with HSA offering. ☐ ☐ Health Reimbursement Account (HRA) administration $500 annual fee Annual fee invoiced through HealthEquity Employer Portal. $3.95 Per Account Per Month (PAPM) Visa card: Up to 2 FREE and additional or replacement cards at $10 per card ***FSA and HRA are purchased only, 1 fee applies at $3.95 PAPM AGENDA ITEM #6. d) HMA Client Intent & TPA Exhibit A - City of Renton 4034/5034 Page 5 of 8 9/25/2019 ☐ ☐ Health Savings Account (HSA) administration $500 annual fee (invoiced through HealthEquity Employer Portal) $2.70 Per Account Per Month (PAPM) Visa card: Up to 3 FREE and additional or replacement cards at $5 per card (No set-up fees) ☐ ☐ $2.00 PEPM The Plan-Appointed Claim Evaluator “PACE” Fiduciary Service ☐ ☐ ☐ ☐ $1.50 PEPM - Healthcare Bluebook and the cost of the Go Green to Get Green Rewards Program. Rewards are $25 - $100 per service. $2.00 PEPM - Healthcare Bluebook, Doctor Quality, and the cost of the Go Green to Get Green Rewards Program. MDLive Telehealth: ☐ ☐ $1.60 PEPM Medical plus Behavioral Health (BH) and Dermatology + $38/ visit fee for Medical/Dermatology + $80-$260 /visit consulting fee for Behavioral Health ☐ ☐ $1.35 PEPM Medical plus Behavioral Health + $38/ visit fee for Medical + $80-$260 /visit consulting fee for Behavioral Health ☐ ☐ $1.30 PEPM Medical plus Dermatology + $38 / visit $1.00 PEPM ☐ ☒ $1.00 PEPM Medical Only + $38 / visit ☒ ☐ $1.50 PEPM - Care Navigator ☐ ☐ $6.50 PEPM - Disease Management, Wellness Hub & Wellness Coaching * Incorporates $1.00 PEPM discount for buying all three services in a bundle. ☐ ☐ $4.40 PEPM - Disease Management & Wellness Hub The Disease Management program includes nurse coaching and outreach for six major chronic conditions—diabetes, asthma, coronary artery disease (CAD), congestive heart failure (CHF), chronic obstructive pulmonary disease (COPD) and hypertension along with the Wellness Hub features listed above. ☐ ☐ $3.50 PEPM - Disease Management – Includes nurse coaching and outreach for six major chronic conditions—diabetes, asthma, coronary artery disease (CAD), congestive heart failure (CHF), chronic obstructive pulmonary disease (COPD) and depression. ☐ ☐ $1.50 PEPM - Wellness Hub - includes a personal health assessment, individual and company challenges, fitness device and app integration, health decision support tools, and a customizable wellness incentive tracker. ☐ ☐ $2.50 PEPM - Wellness Coaching - Includes unlimited inbound health coaching via phone, email or video conferencing for working on wellness goals such as stress management, tobacco cessation, eating healthier and being more physically active. ☐ ☐ Incentive Administration - In addition to the Wellness Hub full incentive administration support for outcomes-based incentives is available. This includes complete administration of customized incentive campaign, including design, creation, management, tracking and reporting is available. 5 Hours are included. Additional hours are available for $125/hr. AGENDA ITEM #6. d) HMA Client Intent & TPA Exhibit A - City of Renton 4034/5034 Page 6 of 8 9/25/2019 ☐ ☐ $350.00 Per Case - Maternity Program ☐ ☐ $0.65 PEPM - 24 Hour Nurse Line ☐ ☐ $2.00 PEPM - Consolidated Billing - Option 1 - with Premium Remittance and NO Eligibility Administration ☐ ☐ Consolidated Billing - Option 2 - with Premium Remittance and Eligibility Administration $3.00 PEPM and $0.50 PEPM for any vendor(s) other than WDS, Willamette Dental Group or VSP ID recard fee - $2.00 per employee (Incidental reissue no cost) Excess Loss Services In compensation for the work that HMA does to support excess loss carriers, HMA receives an administrative allowance of 2.5% from most of our preferred carriers. If you are using a non-preferred carrier, there will be an interface fee of 3.0% of excess loss premium that is assessed to the group in lieu of the administrative allowance. These excess loss fees will be reflected on the invoice on a PEPM basis. HMA reserves the right to decline to work with non-preferred excess loss carriers. If we agree to administer a plan with an excess loss carrier that is not preferred, we will charge an interface fee of 3.0% of excess loss premium and will ask for a signed waiver of liability from the group. For carriers where we are not an approved benefit administrator, HMA reserves the right to decline to proceed with the approval process at our discretion. For new groups, the interface fee for non-preferred carriers is based on the carriers projected enrollment and premium rates. For renewing groups, the interface fee for non-preferred carriers is calculated based on the final stop loss renewal premium rates and enrollment for the last month of the prior contract period. The rates are calculated as follows: [.03 x (single Specific Stop Loss Premium Rate x single enrollment) + (family Specific Stop Loss Premium Rate x family enrollment) + (Aggregate Stop Loss Premium Rate x total enrollment)] / Total Enrollment ☐ I’ve read and accept the above terms regarding Excess Loss Services. Other Comments Please use the below section to include other notes or comments. •RENEWAL with HMA ACCEPTED Accept the proposed renewal of 2.5%, but remove Care Navigator, $1.50 PEPM •DENTAL PLAN UPDATES: Increase Calendar Year Benefit Max from $1,800 to $2,000 Increase Type III Services from 50% to 80% Increase Ortho from $1,250 to $2,000 Change OON from 100%/100%/50% to 80%/80%/50% •VISION PLAN UPDATES: Cover Eye Exam at 100% and do not apply towards benefit maximum Cover Eye Exam every year (currently every other year) Add Laser Surgery $1,000 per eye lifetime benefit The $650 hardware benefit that is currently available every two years will continue, and can be used towards Laser Surgery or for hardware such as glasses or contacts. AGENDA ITEM #6. d) HMA Client Intent & TPA Exhibit A - City of Renton 4034/5034 Page 7 of 8 9/25/2019 •MEDICAL PLAN UPDATES: Maintaining Grandfather Status (NOT increasing the OOP Max) Apply all copays to out of pocket max & remove copay for in-network preventive care Change mental health coverage from 50% to 100% Add Fertility Benefits at $20,000 Lifetime Max at 100% / Ensure male fertility is included. This benefit is for employee and spouse only. See pages 9&10 below for requested SPD language updates to Eligibility. AGENDA ITEM #6. d) HMA Client Intent & TPA Exhibit A - City of Renton 4034/5034 Page 8 of 8 9/25/2019 Acceptance IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives on the respective dates set forth below, effective as of the day and year first above written. * Note, the contingency fee charged by Accent varies based on the age of the underlying claim. In no instance will the total fee to the Plan exceed 20% of the amount recovered. By: City of Renton 4034/5034 X By: Healthcare Management Administrators X Name: Name: Title: Title: Date: Click or tap to enter a date. Date: Click or tap to enter a date. AGENDA ITEM #6. d) Agenda item 4e2 Current Plan Document Language ELIGIBILITY AND ENROLLMENT PROVISIONS ELIGIBILITY Employee Eligibility You are defined as an employee if you are an individual who is: (1) directly involved in the regular business of and compensated for services by the City of Renton; (2) regularly scheduled to work at least the minimum number of hours, as indicated below, on an active, full-time basis; or (3) you are an individual listed below who is eligible for coverage. You are eligible for coverage under this Plan if: You are an active full-time or part-time employee of City of Renton who is regularly scheduled to work 20 hours or more per week. If you are an active regular employee, you are entitled to coverage on a pro-rated basis depending on your scheduled weekly hours of work in accordance with the following accrual rate ratio: •20 but less than 25 hours - 50% •25 but less than 30 hours - 62.5% •30 but less than 35 hours - 75% •35 hours or more - 100% If you are a regular full-time employee, you and your dependents are eligible for full coverage. If you are a regular part-time employee covered by the City of Renton Employee Health Care Plan as of 12/31/92, you are eligible to receive either full medical and/or dental benefits for yourself only. Effective 1/1/93, if you are a regular part-time employee scheduled to work 20 hours or more per week, you can elect to pay a pro-rated portion of the full premium for employee only. The dollar amount paid for the medical package and/or dental package is based on the number of hours worked. The percentage of the total premium the employee pays for themselves is listed on the rate sheet. Employee must pay the full premium amount for any dependent coverage. You are ineligible if, regardless of the number of hours worked, you are: a part-time employee regularly scheduled to work less than 20 hours per week, a seasonal employee or a temporary employee per City policy. Page 13 AGENDA ITEM #6. d) Agenda Item 4e2 Proposed Plan Document Language ELIGIBILITY AND ENROLLMENT PROVISIONS ELIGIBILITY Employee Eligibility You are defined as an employee if you are an individual who is: (1) directly involved in the regular business of and compensated for services by the City of Renton; (2) regularly scheduled to work at least the minimum number of hours, as indicated below, on an active, full-time basis; or (3) you are an individual listed below who is eligible for coverage. You are eligible for coverage under this Plan if: You are an active, regular full-time or part-time employee of City of Renton who is regularly scheduled to work 20 hours or more per week. If you are an active, regular full-time employee, scheduled to work 35 hours or more a week, you and your dependents are eligible for full coverage. If you are an active, regular part-time employee, scheduled to work at least 20, but less than 35 hours a week, you are eligible for full coverage for yourself only. Your dependents are eligible for coverage with a pro-rated portion of the premiums covered by the City. If you elect to cover your dependents, you must pay the remainder of the premiums not covered by the City. Prorated coverage for dependents of part-time employees is based on scheduled weekly hours of work in accordance with the following accrual rate ratio: •20 but less than 25 hours - 50% •25 but less than 30 hours - 62.5% •30 but less than 35 hours - 75% •35 hours or more - 100% You are ineligible if, regardless of the number of hours worked, you are: a part-time employee regularly scheduled to work less than 20 hours per week, a seasonal employee or a temporary employee per City policy. Page 14 AGENDA ITEM #6. d) Medical Administrative Renewal City of Renton Agent / Brokerage: Mark Esteb & Tony Ciez / USI Quote Assumes an Effective Date of: January 1, 2020 Fees Based On: Total Employees Total Dependent Units 654 911 Proving What’s Possible in Healthcare 4 Base Medical Administration Fees Current Renewal Renewal Option Medical Plan Administration $22.25 $22.80 $22.80 HMA Preferred with PHCS National Network Access $5.50 $5.50 $5.50 Care Management -Preauthorization, Large Case Management and Managed Behavioral Health Services $3.75 $3.75 $3.75 Claim Bank Account Reconciliation Included Included Included Plan Documents (SPD and SBC)Included Included Included PBM Administration*included included included Stop Loss Administration Included Included Included Total Base Administration $31.50 $32.05 $32.05 Early Renewal Confirmation Credit Applies if signed renewal documents are provided by 11/1 ($0.20)($0.20)($0.20) Additional Services PEPM Fee PEPM Fee PEPM Fee Dental Administration $3.25 $3.25 $3.25 Dental PPO Network Access $1.50 $1.50 $1.50 Vision Hardware Administration $0.65 $0.65 $0.65 Flexible Spending Account F S A N/A N/A N/A Health Reimbursement Account H R A N/A N/A N/A Health Savings Account H S A N/A N/A N/A COBRA Administration $1.35 $1.35 $1.35 Consolidated Billing N/A N/A N/A Fiduciary Service N/A N/A N/A Care Navigator $1.50 $1.50 Wellness Hub N/A N/A N/A Wellness Hub with Wellness Coaching N/A N/A N/A Disease Management with Wellness Hub N/A N/A N/A Disease Management N/A N/A N/A 24 Hour Nurse Line N/A N/A N/A MD Live with Medical plus Behavioral Health and Dermatology Available 1/1/20 NEW N/A MD Live with Medical and Behavioral Health N/A N/A N/A MD Live with Medical and Dermatology Available 1/1/20 NEW N/A N/A MD Live Medical Only $1.00 $1.00 Healthcare Bluebook plus Doctor Quality Available 1/1/20 NEW N/A Healthcare Bluebook N/A N/A N/A Total Additional Services $9.25 $9.25 $7.75 N/A N/A N/A $1.00 Grand Total Admin Fee $40.55 $41.10 $39.60 ________________________________________________________________________________ Active Plan (4034) estimated expense * 561 employees: Monthly - $22,748.55 $22,215.60 Yearly - $272,982.60 $266,587.20 Retiree Plan (5034) estimated expense * 84 Retirees Monthly - $3,406.20 $3,326.40 Yearly - $40,874.40 $39,916.80 * Enrollment count as of 9/18/2019 AGENDA ITEM #6. d) AB - 2488 City Council Regular Meeting - 28 Oct 2019 SUBJECT/TITLE: Renewal of Kaiser Permanente healthcare contract for 2020 RECOMMENDED ACTION: Refer to Finance Committee DEPARTMENT: Human Resources / Risk Management Department STAFF CONTACT: Ellen Bradley-Mak, Administrator EXT.: X7657 FISCAL IMPACT SUMMARY: Expenditure required: $192,750, adjusted as needed for additional or reduced enrollment Amount budgeted: $192,750 This amount includes coverage for active employees and LEOFF 1 retirees. SUMMARY OF ACTION: Council approval is requested for the renewal of the fully insured health plan by Kaiser Permanente (formerly Group Health). Kaiser’s rates have increased 5.1% from 2019, when there was a 29% rate decrease. The open enrollment process is during the month of November. Any increase or decrease in enrollment will change the total cost. However, the cost change will be approximately offset by a corresponding change in the self-funded plan. Upon approval by the City, Kaiser will issue the updated Plan Document. EXHIBITS: A. Summary of Kaiser rate change B. Kaiser renewal rates for active employees C. Kaiser renewal rates for LEOFF 1 retirees STAFF RECOMMENDATION: Approve the 2020 Kaiser Permanente healthcare contracts for active employees and LEOFF I ret irees, and authorize the Mayor and City Clerk to sign the implementing documents when ready. AGENDA ITEM #6. e) Number Enrolled Full Monthly Premium Employee Permiums Monthly Employer Cost Annual Cost Based on Enrollment LEOFF 1 Retiree (with Medicare)5 $554.19 $0.00 $554.19 $33,251.40 Employee 3 $515.68 $46.41 $469.27 $16,893.68 Employee and 1 Child 0 $892.28 $80.31 $811.97 $0.00 Employee and Two or More Children 0 $1,221.22 $109.91 $1,111.31 $0.00 Employee and Spouse 2 $1,301.48 $117.13 $1,184.35 $28,424.32 Employee, Spouse, and 1 Child 1 $1,678.06 $151.03 $1,527.03 $18,324.42 Family Rate: Includes Employee, Spouse, and Two or More Children 4 $2,006.96 $180.63 $1,826.33 $87,664.01 Total $184,557.83 Estimated Number Enrolled Full Monthly Premium Employee Permiums Monthly Employer Cost Annual Cost Based on Enrollment LEOFF 1 Retiree (with Medicare)5 $561.68 $0.00 $561.68 $33,700.80 Employee 3 $542.06 $48.79 $493.27 $17,757.89 Employee and 1 Child 0 $937.91 $84.41 $853.50 $0.00 Employee and Two or More Children 0 $1,283.67 $115.53 $1,168.14 $0.00 Employee and Spouse 2 $1,368.04 $123.12 $1,244.92 $29,877.99 Employee, Spouse, and 1 Child 1 $1,763.88 $158.75 $1,605.13 $19,261.57 Family Rate: Includes Employee, Spouse, and Two or More Children 4 $2,109.62 $189.87 $1,919.75 $92,148.20 Total $192,746.45 2019 KAISER PERMANENTE: MEDICAL/Rx/VISION 2020 KAISER PERMANENTE: MEDICAL/Rx/VISION AGENDA ITEM #6. e) 526GG07-0917 Rates Confirmation City of Renton Effective Date 1/1/2020 - 1/1/2021 The below rates have been quoted for the following plan(s). Please sign below to confirm rates. Applicant further acknowledges and agrees that payment of any premium due for the coverage shall constitute applicant's acceptance of the coverage agreement issued. Core Core HMO Group Name City of Renton Group Number 1162600 RQ-143292 Rates by Tier EE $ 542.06 EE/S $ 1,368.04 EE/1C $ 937.91 EE/2+C $ 1,283.67 EE/S/1C $ 1,763.88 EE/S/2+C $ 2,109.62 All plans offered and underwritten by Kaiser Foundation Health Plan of Washington This health coverage meets or exceeds the minimum essential coverage requirements and the minimum value standard for the benefits it provides. This outpatient prescription drug coverage meets the Medicare Part D standard for creditable coverage. Signature __________________________________________________ Date __________________________AGENDA ITEM #6. e) 526GG07-0917 Rates Confirmation City of Renton -LEOFF 1 Retirees Effective Date 1/1/2020 - 1/1/2021 The below rates have been quoted for the following plan(s). Please sign below to confirm rates. Applicant further acknowledges and agrees that payment of any premium due for the coverage shall constitute applicant's acceptance of the coverage agreement issued. Core Core HMO Group Name City of Renton - Leoff I Retirees Group Number 0057500 RQ-143297 Rates by Tier EE $ 1,170.29 S $ 1,329.94 1C $ 702.72 AAC $ 941.77 Medicare Rates by Tier MedicareAB $ 561.68 All plans offered and underwritten by Kaiser Foundation Health Plan of Washington This health coverage meets or exceeds the minimum essential coverage requirements and the minimum value standard for the benefits it provides. This outpatient prescription drug coverage meets the Medicare Part D standard for creditable coverage. Signature __________________________________________________ Date __________________________AGENDA ITEM #6. e) AB - 2490 City Council Regular Meeting - 28 Oct 2019 SUBJECT/TITLE: Selection of new vendor, Symetra, for employee Life and Disability Insurance for 2020 RECOMMENDED ACTION: Refer to Finance Committee DEPARTMENT: Human Resources / Risk Management Department STAFF CONTACT: Ellen Bradley-Mak, Administrator EXT.: 7657 FISCAL IMPACT SUMMARY: Expenditure required: $154,000 Amount budgeted: $154,000 SUMMARY OF ACTION: The City provides basic life insurance to regular employees, and disability insurance to AFSCME and non - represented employees. Employees may purchase additional life insurance at the City’s rate. We conducted a bid, and recommend moving to Symetra with a premium reduction of 23%. The new policy is very similar to the prior policy, with a slight improvement in disability benefits. EXHIBITS: A. Summary of successful bid B. Application for Group Insurance STAFF RECOMMENDATION: Approve the Symetra Service Agreement, and authorize the Mayor and City Clerk to sign the implementing documents when ready. AGENDA ITEM #6. f) Life & Disability Options January 1, 2020 Renewal Date Options Current Option A Option B Option C Vendor Standard Standard Symetra Symetra Description 2019 Policy Renew with current vendor Change vendor, with current policy provisions Change vendors, improve disability provisions Life / AD&D $52,071 $37,691 $33,271 $33,271 Long Term Disability Current Benefit $148,158 $103,532 $103,532 $103,532 Extend "Own Occupation" to full length of disability $15,708 Remove "prudent person" from Pre- Existing Condition definition $1,428 Total Long Term Disability $148,158 $103,532 $103,532 $120,668 Life and Disability Annual Total $200,229 $141,224 $136,803 $153,939 Change from Current -$59,006 -$63,427 -$46,290 Percentage Change -29.5%-31.7%-23.1% Recommended Option AGENDA ITEM #6. f) Life & Disability Options January 1, 2020 Renew Options Current Vendor Standard Description 2019 Policy Life / AD&D $52,071 Long Term Disability Current Benefit $148,158 Extend "Own Occupation" to full length of disability Remove "prudent person" from Pre- Existing Condition definition Total Long Term Disability $148,158 Life and Disability Annual Total $200,229 Change from Current Percentage Change `AGENDA ITEM #6. f) Life & Disability Options January 1, 2020 Renew Options Current Vendor Standard Description 2019 Policy Life / AD&D $52,071 Long Term Disability Current Benefit $148,158 Extend "Own Occupation" to full length of disability Remove "prudent person" from Pre- Existing Condition definition Total Long Term Disability $148,158 Life and Disability Annual Total $200,229 Change from Current Percentage Change AGENDA ITEM #6. f) Symetra® and the Symetra Financial logo are registered service marks of Symetra Life Insurance Company. LGC-10033/WA 04/12 Application for Group Insurance Name of Applicant: Address: (Street) (City) (State) (Zip) applies to Symetra Life Insurance Company, for: Group Short Term Disability Insurance Group Long Term Disability Insurance Group Term Life Insurance If Symetra Life Insurance Company (Symetra) approves this application, the policy(ies) indicated above will be issued. The applicant agrees that by signing this application it accepts the policy issued pursuant to the proposal dated _________________________. This application supersedes any previous application. It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties include imprisonment, fines and denial of insurance benefits. Signed at (City) , (State) Date signed: By Title Producer Name (printed) Producer Signature Resident Licensed Producer where required by law Instructions: (1) Sign and return to Symetra. (2) Retain copy with your policy. Symetra Life Insurance Company 777 108th Avenue NE, Suite 1200 Bellevue, Washington 98004-5135 AGENDA ITEM #6. f) AB - 2498 City Council Regular Meeting - 28 Oct 2019 SUBJECT/TITLE: Municipal Court Reorganization RECOMMENDED ACTION: Council Concur DEPARTMENT: Municipal Court STAFF CONTACT: Bonnie Woodrow, Court Services Director EXT.: 6531 FISCAL IMPACT SUMMARY: 2019: $6,575 2020: $54,536 SUMMARY OF ACTION: Staff recommends approval of a Court reorganization to include the following re-grade and series creation, effective November 16, 2019: • Create a series for the existing Judicial Specialist Position. Judicial Specialist I will remain at grade a08. A newly created Judicial Specialist II will be graded at a12. • Regrade the Court Operations Specialist from a10 to a15. EXHIBITS: A. Issue Paper STAFF RECOMMENDATION: Approve the Municipal Court reorganization plan as presented. AGENDA ITEM #6. g) RENTON MUNICIPAL COURT COURT SERVICES M E M O R A N D U M DATE:October 21, 2019 TO:Don Persson, Council President Members of Renton City Council VIA:Denis Law, Mayor FROM:Bonnie Woodrow, Court Services Director SUBJECT:Court Reorganization ISSUE: Should the Court reorganize to create a series of the Judicial Specialist and re-grade the Court Operations Specialist? RECOMMENDATION: Staff recommends approval of a Court reorganization to include the following re-grade and series creation, effective November 16, 2019: Create a series for the existing Judicial Specialist Position. Judicial Specialist I will remain at grade a08. A newly created Judicial Specialist II will be graded at a12. Regrade the Court Operations Specialist from a10 to a15. BACKGROUND SUMMARY: The Judicial Specialists are a diverse group of dedicated employees with a high level of responsibility in their daily activities. Almost every task performed by our employees directly impacts people’s lives, personal safety, individual rights and freedoms. Despite these responsibilities, the Judicial Specialists have not received an increase in salary apart from cost of living for approximately 20 years. Based on the current employment climate, the Court is experiencing difficulty keeping seasoned staff members, losing 42% of senior staff in the past 12 months in part due to the current salary structure. Court staff are seizing opportunities for increased salaries in surrounding jurisdictions. The following changes are proposed: 1. Create a series for the existing Judicial Specialist position. Judicial Specialist I will remain at grade a08. A newly created Judicial Specialist II will be graded at a12. AGENDA ITEM #6. g) As Judicial Specialists become experienced and cross-trained, they will have an opportunity for promotion to the Judicial Specialist II position. The increase in salary would compensate each staff member for their knowledge, years of experience, flexibility of desk assignments and ability to cover any task during planned or unplanned absences. 2. Court Operations Specialist from a10 to a15. The Court has shifted from a paper-driven department to a digital department. Court operations and software have become increasingly complicated and it’s imperative to have a highly-skilled staff member in charge of troubleshooting all technical software and hardware issues. Our Court Operations Specialist position requires specialized knowledge and problem solving ability. An increase in salary would compensate for the technical requirements of the position and keep an appropriate range between this position and the Judicial Specialist series. FISCAL IMPACT: The estimated net cost for 2019 and 2020 is $6,575 and $54,536 respectively. This change is FTE neutral (no FTE’s are lost or added) and will not require an increase to the Court’s budget. CONCLUSION: It is critically important that our valued staff members are compensated at a level that is commensurate with the range and importance of their respective duties and responsibilities. Adequate compensation is critical to the success and morale of our department and without cross-training, teamwork and flexibility of assignments, the Court would be unable to meet our organizational goals. AGENDA ITEM #6. g) 1  CITY OF RENTON, WASHINGTON    ORDINANCE NO. ___________    AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, GRANTING TO SEATTLE  SMSA LIMITED PARTNERSHIP D/B/A VERIZON WIRELESS 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, Seattle SMSA Limited Partnership d/b/a Verizon Wireless (the “Franchisee”)  has requested that the City Council grant a nonexclusive franchise (this “Franchise”); and    WHEREAS, the 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.    AGENDA ITEM # 8. a) ORDINANCE NO. ________  2  Section I.2  This Franchise ordinance grants Franchisee the right, privilege, and authority  to construct, operate, maintain, replace, relocate, repair, upgrade, remove, excavate, acquire,  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 corridors, 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; (d)  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, that  AGENDA ITEM # 8. a) ORDINANCE NO. ________  3  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 substitute for 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 (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 (3) cubic feet in volume or, in the case of an antenna  AGENDA ITEM # 8. a) ORDINANCE NO. ________  4  that has exposed elements, the antenna and all of its exposed elements could fit within an  imaginary enclosure of no more than three (3) 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, telecom 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,  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.”  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.  AGENDA ITEM # 8. a) ORDINANCE NO. ________  5  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:  (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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  6  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.  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:  AGENDA ITEM # 8. a) ORDINANCE NO. ________  7  (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  covenants and agrees, to protect, support, temporarily disconnect, relocate, 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  thereof, widening 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 any Right‐of‐Way improvement  AGENDA ITEM # 8. a) ORDINANCE NO. ________  8  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 improvements 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, 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 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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  9  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 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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  10  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) Together with the notice of relocation, 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 new 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  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. 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.    AGENDA ITEM # 8. a) ORDINANCE NO. ________  11  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 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:  (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 this 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.  AGENDA ITEM # 8. a) ORDINANCE NO. ________  12  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 as provided herein; 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, only for the time period necessary to complete the move, 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 this Section V, then after  fifteen (15) days’ notice to Franchisee, the City may perform such work or cause it to be done,  and the City’s costs shall be paid by Franchisee pursuant to Section XIV.2 and Section XIV.3.  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.    AGENDA ITEM # 8. a) ORDINANCE NO. ________  13  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 the structure 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 VII.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.  AGENDA ITEM # 8. a) ORDINANCE NO. ________  14  SECTION VII. Maps and Records.    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 any and all utility taxes due to the City in connection  with the Franchisee’s services and Facilities 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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  15  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  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.   AGENDA ITEM # 8. a) ORDINANCE NO. ________  16  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  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.    AGENDA ITEM # 8. a) ORDINANCE NO. ________  17  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 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  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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  18  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; such approval shall not be unreasonably withheld,  delayed, or conditioned.  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 (6") or greater in diameter,  must be performed under the direction of an arborist certified by the International Society of  AGENDA ITEM # 8. a) ORDINANCE NO. ________  19  Arboriculture, unless otherwise approved by the Community and Economic Development  Administrator or designee.    Section VIII.7  Franchisee shall meet with the City and other franchise holders and users  of the Rights‐of‐Way upon thirty (30) days’ notice 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.  AGENDA ITEM # 8. a) ORDINANCE NO. ________  20  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,  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 a  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 not shorter than forty‐five (45) days, then the  City may make such repairs or contract for them to be made.  All costs, including administrative  AGENDA ITEM # 8. a) ORDINANCE NO. ________  21  costs, incurred by the City in repairing any unsafe conditions shall be borne by Franchisee and  reimbursed to the City pursuant to Section XIV.2 and Section XIV.3.   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.  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 reasonably  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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  22  (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 Section XVII, 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, 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 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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  23  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.   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 XXII  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.   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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  24  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,  AGENDA ITEM # 8. a) ORDINANCE NO. ________  25  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  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 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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  26  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  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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  27  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  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 may  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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  28  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.    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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  29  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:  AGENDA ITEM # 8. a) ORDINANCE NO. ________  30  (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 one hundred feet (100'), if necessary.  Maps  shall be drawn at 1:20 scale;  (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  six feet (6') tall or deciduous  trees greater than  six inches (6") in diameter at four and a half feet (4 ½') 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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  31  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.  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, including applicable time periods for review of applications  for City Approvals, and shall be in addition to any permits required under Section VIII.2.   This Section does not affect the thirty (30)‐day 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  Emissions Reports.  Franchisee is obligated to comply with all laws relating  to allowable presence of or human exposure to Radiofrequency Radiation (“RFs”) or  Electromagnetic Fields (“EMFs”) on or off any poles or structures in the Rights‐of‐Way,  including all applicable FCC standards, whether such RF or EMF presence or exposure  results from the Small Cell Facility alone or from the cumulative effect of the Small Cell  Facility added to all other sources operated by Franchisee or on behalf of Franchisee on  or near the specific pole or structure.  Franchisee must provide to the City a copy of a  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.  Franchisee must submit one Emissions Report to the City with each Small Cell  Permit application. For purposes of clarification, this requirement shall not be interpreted  AGENDA ITEM # 8. a) ORDINANCE NO. ________  32  as requiring one Emissions Report for each node, or each pole installation, but rather one  Emissions Report for each batch of Small Cell Facilities that comprise a Small Cell network  covering a specific area or region.  Further, Franchisee shall, at its own cost and expense,  perform an RF emissions test following installation to validate that the Small Cell Facilities  once installed comply with the FCC standards.    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 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:    (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.     AGENDA ITEM # 8. a) ORDINANCE NO. ________  33  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.   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.  Section XV.3.4  Concealment.  Franchisee shall construct its Facilities consistent with  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.    AGENDA ITEM # 8. a) ORDINANCE NO. ________  34  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, which Franchisee shall provide to the City 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 17.1, 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 Right‐of‐Way since the last reported inventory, and may thereafter omit  reference to the Deactivated Facilities.  AGENDA ITEM # 8. a) ORDINANCE NO. ________  35  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 under this Franchise.  Franchisee shall 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 a minimum of $5,000,000 combined  single limit each accident for bodily injury and property damage;  (b) Commercial General Liability insurance, written on an occurrence basis with total  limits of a minimum of $5,000,000 per occurrence for bodily injury and property  damage and a minimum of $5,000,000 general aggregate including premises,  AGENDA ITEM # 8. a) ORDINANCE NO. ________  36  operations, independent contractors, products and completed operations;  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 a minimum of $5,000,000 per  occurrence and in the aggregate.  Section XVI.2  Payment of deductible or self‐insured retention shall be the sole  responsibility of Franchisee.  Franchisee may utilize primary and umbrella liability insurance  policies to satisfy the insurance policy limits required in this Section XVI.  Section XVI.3  The insurance policies, with the exception of Workers’ Compensation  obtained by Franchisee shall include the City, its officers, officials, and employees (“Additional  Insureds”), as an additional insured under this Agreement 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.  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 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 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 insurance and shall not contribute with it.   AGENDA ITEM # 8. a) ORDINANCE NO. ________  37  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, that is not replaced.  If 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 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’s, or its parent company’s, most recent audited financial statements if such financial  statements are not otherwise publically 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.    AGENDA ITEM # 8. a) ORDINANCE NO. ________  38  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 its  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.    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 its 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 that the Rights‐of‐Way  were in immediately prior to any such installation, construction, relocation, maintenance or  repair, reasonable wear and tear and casualty excepted, provided Franchisee shall not be  responsible for any damages to the Rights‐of‐Way not caused by Franchisee or any person doing  AGENDA ITEM # 8. a) ORDINANCE NO. ________  39  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 all necessary instruments for transferring ownership to the  City.   Section XVII.5  Any Facilities that are not removed within one hundred 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.  SECTION XVIII. Bonds.  Performance Bond.  Franchisee shall furnish a performance  bond (“Performance Bond”) written by a corporate surety reasonably acceptable to the City  equal to at least one hundred fifty percent (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)  AGENDA ITEM # 8. a) ORDINANCE NO. ________  40  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 City.  Section XVIII.2  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,  excluding materials.  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,  AGENDA ITEM # 8. a) ORDINANCE NO. ________  41  Franchisee may satisfy the City’s bond requirements by posting a single on‐going maintenance  bond in an amount approved by City.  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 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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  42  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 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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  43  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  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.  AGENDA ITEM # 8. a) ORDINANCE NO. ________  44  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 XXV. 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 VII, Section XVII, Section XXVI, Section XXVII.3, Sections  XXXVIII.1 through XXXVIII.5, and Section XXXVIII.9 of this Franchise shall be in addition to any and  AGENDA ITEM # 8. a) ORDINANCE NO. ________  45  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, without City approval, 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, to an entity that acquires  all or substantially all of Franchisee’s assets in the market defined by the Federal Communication  Commission in which the Franchise Area is located, 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,  AGENDA ITEM # 8. a) ORDINANCE NO. ________  46  however, any tender offer, merger, or similar transaction resulting in a change of control shall be  subject to the provisions of this Franchise.  After any assignment as provided hereunder,  Franchisee shall be relieved of all obligations and liability arising after the date of such  assignment.    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 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 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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  47  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  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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  48  (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:  City:  City of Renton  Attn:  Administrator, Community &  Economic Development Department  1055 South Grady Way  Renton, WA 98057  Franchisee:  Seattle SMSA Limited Partnership   d/b/a Verizon Wireless  Attn:  Network Real Estate  180 Washington Valley Road  Bedminster, New Jersey 07921  AGENDA ITEM # 8. a) ORDINANCE NO. ________  49    With a copy to:  City of Renton  Attn:  City Attorney  1055 South Grady Way  Renton, WA 98057    With a copy to:    Seattle SMSA Limited Partnership  d/b/a Verizon Wireless  Attn:  Pacific Market General Counsel  15505 Sand Canyon Avenue  Irvine, CA 92618    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.  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.  City  reserves the right at any time to amend this Franchise to conform to any hereafter enacted,  AGENDA ITEM # 8. a) ORDINANCE NO. ________  50  amended, or adopted federal or state statute or regulation relating to the public health, safety,  and welfare, or relating to roadway regulation, or a City ordinance enacted pursuant to such  federal or state statute or regulation upon providing Franchisee with thirty (30) days' written  notice of its action setting forth the full text of the amendment and identifying the statute,  regulation, or ordinance requiring the amendment. Said amendment shall become automatically  effective upon expiration of the notice period unless, before expiration of that period, Franchisee  makes a written request for negotiations over the terms of the amendment. If the parties do not  reach agreement as to the terms of the amendment within forty‐five (45) days after the call for  negotiations, City may enact the proposed amendment, by incorporating Franchisee's concerns  to the maximum extent City deems possible.  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 disposal of hazardous substances, whether or not intentional, and the use, storage, release,  AGENDA ITEM # 8. a) ORDINANCE NO. ________  51  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.      AGENDA ITEM # 8. a) ORDINANCE NO. ________  52  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  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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  53  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  Except to the extent that damage or injury arises from the negligence  or willful misconduct of the City, its employees, agents, volunteers, elected officials or  contractors, the obligations of Franchisee under the indemnification provisions of Section XXXVIII  and any other indemnification provision herein shall apply regardless of whether liability for  damages arising out of bodily injury to persons or damages to property were caused or  contributed to by the concurrent negligence of the City, its officers, agents, employees or  contractors.  Notwithstanding the proceeding 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 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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  54  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 the City be liable 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 its  performance or failure to perform under this Franchise.  Franchisee releases and waives any and  all such claims against the City, its officers, agents, employees, volunteers, or elected or  appointed officials, or contractors.  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  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  AGENDA ITEM # 8. a) ORDINANCE NO. ________  55  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.  AGENDA ITEM # 8. a) ORDINANCE NO. ________  56  Section XXXVIII.13  This Franchise may be enforced at both law and equity.  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”).  PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2019.               ________________________________          Jason A. Seth, City Clerk      APPROVED BY THE MAYOR this _______ day of _____________________, 2019.               ________________________________         Denis Law, Mayor  AGENDA ITEM # 8. a) ORDINANCE NO. ________  57    Approved as to form:      ________________________________       Shane Moloney, City Attorney    Date of Publication:  __________       ORD:2093:10/24/19  AGENDA ITEM # 8. a) ORDINANCE NO. ________  58    SUMMARY OF ORDINANCE NO.          (201_)    City of Renton, Washington    ______________________________________________________________________________     On the ___ day of _______, 201__, the City Council of the City of Renton passed Ordinance  No. _____.  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 SEATTLE SMSA  LIMITED PARTNERSHIP D/B/A VERIZON WIRELESS 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.      The full text of this Ordinance will be mailed upon request.       ___________________________________      CITY CLERK      FILED WITH THE CITY CLERK:                 , 201_  PASSED BY THE CITY COUNCIL:  _______, 201_  PUBLISHED:   ______, 201_  EFFECTIVE DATE:             , 201_  ORDINANCE NO.:        (201_)  AGENDA ITEM # 8. a)     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 # 8. a)      EXHIBIT B    STATEMENT OF ACCEPTANCE    ___________________________________, 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.      Seattle SMSA Limited Partnership   d/b/a Verizon Wireless    By: Cellco Partnership, its General Partner    By: _______________________   Name: ____________________  Title:   ____________________  Date: ______________________      STATE OF ________________ )   )ss.  COUNTY OF ______________ )    On this ____ day of _______________, 201_, before me the undersigned, a Notary Public in and for  the State of _________________, duly commissioned and sworn, personally appeared,  __________________ of Cellco Partnership, General Partner of Seattle SMSA Limited Partnership  d/b/a Verizon Wireless, 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.    _____________________________________________  Signature    _____________________________________________  NOTARY PUBLIC in and for the State of __________________, residing at  ________________________    MY COMMISSION EXPIRES: ______________________________          AGENDA ITEM # 8. 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 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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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.07, 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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 ½ 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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    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 # 8. b) ORDINANCE NO. ________    47    PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2019.                ____________________________           Jason A. Seth, City Clerk    APPROVED BY THE MAYOR this _______ day of _____________________, 2019.                        ____________________________          Denis Law, Mayor      Approved as to form:      ____________________________       Shane Moloney, City Attorney    Date of Publication: ___________     ORD:2094:10/10/19    FILED WITH THE CITY CLERK:  PASSED BY THE CITY COUNCIL:  PUBLISHED:  EFFECTIVE DATE:  ORDINANCE NO.:    AGENDA ITEM # 8. b) ORDINANCE NO. ________    48    SUMMARY OF ORDINANCE NO.          (201_)    City of Renton, Washington    ______________________________________________________________________________     On the ___ day of _______, 201__, the City Council of the City of Renton passed Ordinance  No. _____ (_______).  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.       ___________________________________      CITY CLERK      FILED WITH THE CITY CLERK:                 , 201_  PASSED BY THE CITY COUNCIL:  _______, 201_  PUBLISHED:   ______, 201_  EFFECTIVE DATE:             , 201_  ORDINANCE NO.:        (201_)  AGENDA ITEM # 8. b)     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 # 8. b)     50  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: Manager    By: ____________________________________ Date: ______________________________  Name: ____________________  Title:   ____________________        STATE OF ________________ )   )ss.  COUNTY OF ______________ )    On this ____ day of _______________, 201_, before me the undersigned, a Notary Public in and  for the State of _________________, duly commissioned and sworn, personally appeared,  __________________ 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.    _____________________________________________  Signature    _____________________________________________  NOTARY PUBLIC in and for the State of __________________, residing at  ________________________    MY COMMISSION EXPIRES: ______________________________        AGENDA ITEM # 8. b) 1  CITY OF RENTON, WASHINGTON    ORDINANCE NO. ________    AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING CHAPTER  3‐10 OF THE RENTON MUNICIPAL CODE CLARIFYING THE AUTHORITY OF THE  RENTON MUNICIPAL COURT, CREATING A NEW FULL‐TIME JUDICIAL POSITION,  PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE.     WHEREAS, the Renton Municipal Court was created pursuant to the authority granted by  Chapter 3.50 of the Revised Code of Washington and is subject to and has all powers authorized  thereby; and  WHEREAS, RCW 3.50.055 requires that any full‐time judicial position as well as additional  judicial positions that are in combination more than one‐half of a full‐time equivalent position be  filled by election; and  WHEREAS, the City’s current and projected caseloads necessitate creation of an  additional elected judicial position and RCW 3.50.070 authorizes the City Council to create such  additional elected position by ordinance;   NOW, THEREFORE, 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 not shown in  strikethrough and underline edits remain in effect and unchanged.  SECTION II. Chapter 3‐10 of the Renton Municipal Code is amended as shown in Exhibit  A, which is attached and incorporated as if fully set forth herein.    SECTION III.  If any section, subsection, sentence, clause, phrase or work of this  ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction,  AGENDA ITEM # 8. c) ORDINANCE NO. ________  2  such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other  section, subsection, sentence, clause, phrase or word of this ordinance.  SECTION IV. 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 this _______ day of ___________________, 2019.                         Jason A. Seth, City Clerk    APPROVED BY THE MAYOR this _______ day of _____________________, 2019.                         Denis Law, Mayor    Approved as to form:             Shane Moloney, City Attorney  Date of Publication:      ORD:2089:10/1/19   AGENDA ITEM # 8. c) ORDINANCE NO. ________  3  Exhibit A  CHAPTER 10  MUNICIPAL COURT  SECTION:    3‐10‐1: Establishment Of Municipal Court  3‐10‐2: Term, Qualifications, Appointment, Duties, Authority, and  Compensation Of Elected Judicial Positions Election, Term And  Qualifications Of Judge  3‐10‐3: Judges Pro Tem And Commissioners  3‐10‐4: Court Sessions      3‐10‐1 ESTABLISHMENT OF MUNICIPAL COURT:  There is hereby created and established the Municipal Court of the City of Renton  (“Municipal Court”), which shall have jurisdiction and exercise all powers vested  in the court by Chapter 3.50 RCW as it now exists or may hereafter be amended,  together with such other powers and jurisdiction as are generally conferred on  such courts in Washington, either by common law or express statute.  3‐10‐2 ELECTION, TERM, AND QUALIFICATIONS, APPOINTMENT, DUTIES,  AUTHORITY, AND COMPENSATION OF ELECTED JUDGE JUDICIAL POSITIONS:  A. Judicial Positions – Term and Qualifications: There shall be two (2) full‐time  judicial positions with regular terms filled by election of City of Renton voters.   Elections shall be made in same manner as other elected City positions with terms  of four (4) years commencing on January 1, 1986, and every four (4) years  thereafter. Judges filling such positions shall be a resident and lawfully registered  AGENDA ITEM # 8. c) ORDINANCE NO. ________  4  voter in King County, Washington, and an attorney admitted to practice law before  the courts of record of the state of Washington.    B. Appointment: Within thirty (30) days of the creation or vacancy of a judicial  position that is subject to election pursuant to RCW 3.50.055, the Mayor shall  appoint a judge to fill such position with an interim term commencing upon  appointment and terminating upon certification of the next regularly scheduled  judicial election.  Upon certification of such election results, the position shall be  filled by the candidate elected to fill the position in the next full four (4)‐year term.   The Mayor’s appointment is subject to confirmation by the City Council.    C. Duties and Authority:  Full‐time judges shall devote all of their professional  time to the elected or appointed office and shall not engage in the practice of law.  Before entering upon the duties of office, each judge shall take and subscribe to  the oath or affirmations required by RCW 3.50.097.  The judges shall have the  authority and duty to perform the responsibilities conferred upon the positions in  accordance with the jurisdiction granted to the Municipal Court and all applicable  statutes, ordinances, court rules, and other standards regulating such judicial  positions. The Presiding Judge may by court rule or other lawful procedure  establish fines and penalties for civil infractions or other offenses so long as such  fines and penalties are within the range allowed for such fines and penalties by  ordinance, rule, or other law.    D. Presiding Judge:  The full‐time judges shall select a Presiding Judge, which  may rotate or otherwise be changed pursuant to agreement of the judges.  Absent  AGENDA ITEM # 8. c) ORDINANCE NO. ________  5  agreement, the judge with the longest term of service as a judge and/or judge pro  tem for the Municipal Court shall act as the Presiding Judge.  If each judge has the  same length of service for the Municipal Court, the default Presiding Judge shall  be the judge holding the first numbered judicial position.   E. Compensation:  Full‐time Judges shall receive a salary equal to ninety‐five  percent (95%) of the salary for a district court judge as set by the Washington State  Citizens’ Commission on Salaries for Elected Officials.  The salary shall  automatically be adjusted on the effective date of the commission’s salary  schedule.    The Judge of the Municipal Court shall be elected to office for a term of four years  commencing on January 1, 1986, and every four years thereafter. Additional part‐ time judges may be appointed by the Judge of the Municipal Court.  3‐10‐3 JUDGES PRO TEM AND COMMISSIONERS:  A. The Presiding Judge shall may appoint Judges Pro Tem or commissioners  who shall act in the absence, disability or temporary disqualification of the regular  Municipal Court Judges, or the need for more additional judicial resources than  one judge. The Judges Pro Tem or Commissions shall be qualified to hold the  position of Judge of the Municipal Court.   B. Such Pro Tem Judges and Commissioners shall receive hourly  compensation for handling the calendar on any regular or special court day and  for any other judicial services assigned by the Presiding Judge. Such compensation  shall may be set by the Presiding judge based upon market rates for Pro Tem  AGENDA ITEM # 8. c) ORDINANCE NO. ________  6  Judges so long as funds available for such compensation be are available for  expenditure as determined in the City budget.   C.  The appointment authority provided in this Section does not apply to  regular full‐ or part‐time positions which are subject to election pursuant to RCW  35.50.055.    3‐11‐4 COURT SESSIONS:  The Municipal Court shall be open for regular session Monday through Friday of  each week, except City and judicial holidays. The time for operation of court and  administrative services on those days shall be established by the Presiding Judge.  The Presiding Judge shall have the authority to establish additional court dates, by  order of the Municipal Court, to provide effective and efficient administration of  justice. This Section shall not act as a limitation of actions of the Municipal Court  Judges regarding items such as telephonic approval of search warrants, issuance  of no contact orders, or determinations as to probable cause.    AGENDA ITEM # 8. c)