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HomeMy WebLinkAboutORD 5834 CITY OF RENTON, WASHINGTON ORDINANCE NO. 5834 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, GRANTING UNTO PUGET SOUND ENERGY, INC., A WASHINGTON CORPORATION, AND ITS SUCCESSORS AND ASSIGNS, THE PRIVILEGE AND FRANCHISE FOR FIFTEEN (15) YEARS, TO CONSTRUCT, OPERATE, SET, ERECT, SUPPORT, ATTACH, CONNECT, MAINTAIN, REPAIR, REPLACE, ENLARGE AND USE FACILITIES FOR PURPOSES OF TRANSMISSION, DISTRIBUTION AND SALE OF ELECTRICAL ENERGY AND GAS FOR POWER, HEAT,AND LIGHTAND OTHER PURPOSES FOR WHICH ENERGYAND GAS MAY BE USED, IN, UPON, OVER, UNDER, ALONG, ACROSS AND THROUGH THE FRANCHISE AREA;AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, pursuant to RCW 35A.47.030,the City has the authority to grant non-exclusive franchises for the use of public streets, bridges or other public ways, structures or places above or blow the surface of the ground; and WHEREAS,the City has negotiated a non-exlusive franchise with Puget Sound Energy, Inc. ("PSE"), for its use of the rights-of-way of the City of Renton to operate and maintain facilities for the transmission, distribution and sale of electrical energy and natural gas; and WHEREAS, this franchise was introduced to the Council on or about March 20, 2017, and was presented to the Utilies Committee on or about March 23, 2017; and WHEREAS, prior to adoption, the franchise was submitted to the City Attorney; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON DOES ORDAIN AS FOLLOWS: SECTION I. Definitions For the purposes of this Franchise and any attachments, the following defined terms, phrases, words and their derivations, when used in this Franchise with initial letters capitalized, shall have the meaning provided below. When not inconsistent with the context in which the 1 ORDINANCE NO. 5834 word is used, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural. Undefined words shall be given their common and ordinary meaning. 1. Administrator: Means the Administrator of the City's Community and Economic Development Department or designee, or any successor office responsible for management of the City's public properties. 2. Cit1r: Means the City of Renton, a municipal corporation of the State of Washington, and its successors and assigns. 3. Facilitv or Facilities: Means, collectively or individually, any and all: a. Gas distribution systems, including but not limited to, gas pipes, pipelines, mains, laterals, conduits, feeders, regulators, valves, meters, meter-reading devices, fixtures, and communications systems and all necessary facilities and appurtenances thereto, whether the same be located over or under ground; b. Electric transmission and distribution systems, including but not limited to, poles,wires, lines,conduits, ducts, cables, braces,guys, anchors and vaults,transformers, switches, meter-reading devices, fixtures, and communication systems; and any and all other equipment, appliances, attachments, appurtenances and other items necessary, convenient, or in any way appertaining to any and all of the foregoing, whether the same be located over or under ground. 4. Franchise: Means this ordinance and any related amendments, exhibits, or appendices. 2 ORDINANCE N0. 5834 5. Franchise Area: Means (a) all present and future roads, alleys, avenues, highways, streets, and throughways of the City as now laid out, platted, dedicated, acquired or improved and/or as may be hereafter laid out, platted, dedicated, acquired or improved within the present limits of the City and as such limits may be hereafter extended or altered, and (b) all City-owned utility easements dedicated for the placement and location of various utilities provided such easement would permit PSE to fully exercise the privilege granted under this Franchise within the area covered by the easement. 6. Hazardous Substance: Means any hazardous, toxic, or dangerous substance, material, waste, pollutant, or contaminant that is classified as a hazardous substance under applicable Laws. 7. Laws: Means any federal, state, or municipal code, statute, ordinance, decree, executive order, governmental approvals, guideline, permits, procedures, regulation, regulatory programs, rules, specifications, standards or Tariffs, as they exist, are amended, or may be created. 8. Parties: Means the City and PSE. 9. PSE: Means Puget Sound Energy, Inc., a Washington corporation, and its successors and assigns. For the avoidance of doubt, PSE's agents,contractors (of anytier), employees, officers and representatives, when acting for or on behalf of PSE in exercising any rights or fulfilling any obligation of PSE under this Franchise, will be included in the definition of the term "PSE" hereunder. 10. Public Improvement Proiect: Means any City-funded capital improvement or repair project within the Franchise Area that is undertaken by or on behalf of the City. 3 ORDINANCE NO. 5834 11. Tariff: Has the meaning provided in WAC 480-80-030 (Definitions), or such similar definition describing rate schedules, rules and regulations relating to charges and services as may be adopted by the regulatory authority with jurisdiction, under the laws of the State of Washington, over public service companies. 12. WUTC: Means the Washington Utilities and Transportation Commission or such successor regulatory agency havingjurisdiction over public service companies. 13. Work: Means any construction, excavation, installation or other work performed within the Franchise Area by or on behalf of PSE. SECTION II. Purpose 1. Conditions: The purpose of this Franchise is to delineate the conditions relating to PSE's use of the Franchise Area and to create a foundation for the Parties to work cooperatively in the public's best interests after this Franchise becomes effective. This Franchise is granted subject to the City's land use authority, public highway authority, police powers, and franchise authority, and is conditioned upon the terms and conditions provided in this Franchise and PSE's compliance with all Laws, subject to Subsection 7.1. 2. Reserved Ri�hts: This Franchise is granted upon the express condition that the City retains the absolute authority to grant other or further franchises in, under, on, across, over, through, along or below any Franchise Area; provided, to the extent applicable, such authority is exercised in a manner consistent with the terms and conditions of this Franchise. This Franchise shall, in no way, prevent or prohibit the City from using any of its Franchise Area,or affect itsjurisdiction over any part of the Franchise Area, and the City retains absolute authority to make all changes, relocations, repairs, 4 ORDINANCE NO. 5834 maintenance, establishments, improvements, dedications or vacations of same as the City may see fit; provided that the City shall at all times exercise its retained power in a manner consistent with the terms and conditions of this Franchise. SECTION III. Rights and Privileges Conveyed 1. Franchise Granted: Pursuant to all applicable Laws (in the manner specified in Subsection 7.1), the City grants to PSE, under this Franchise's terms and conditions, the privilege, right and authority to construct, operate, set, erect, support, attach, connect, repair, maintain, replace, enlarge, use and improve its Facilities in, upon over, under, along, across and through the Franchise Area to provide for the transmission, distribution and sale of gas and energy for power, heat, light and such other purposes for which gas and energy may be used. 2. Limited Franchise: This Franchise conveys a limited privilege as to the Franchise Area in which the City has an actual interest. It is not a warranty of title or interest in the Franchise Area. This privilege shall not limit the City's police powers, any statutory or inherent authority, jurisdiction over the Franchise Area, or its zoning or land use authority, and the City shall at all times exercise its retained powers in a manner consistent with the terms and conditions of this Franchise. The terms and conditions of this Franchise shall not, and shall not be construed to, apply to Facilities located on PSE- owned or leased properties or easements (whether inside or outside of the Franchise Area,whether granted by a private or public entity,and whether now existing or hereafter acquired) and such Facilities are not, and will not be deemed to be, located pursuant to rights derived from this Franchise or pursuant to rights otherwise granted by the City. 5 ORDINANCE N0. 5834 This Franchise shall not convey any privilege to PSE to install Facilities on or to otherwise use City-owned or leased properties or easements outside the Franchise Area. 3. Principal Use Limitation: This Franchise shall not authorize a principal use of the Franchise Area for purposes other than the location, placement, operation, maintenance and use of Facilities used in the transmission, distribution and sale of gas or electrical energy for power, heat, or light. The City acknowledges that PSE may, from time to time, make or allow incidental use of excess capacity of Facilities within the Franchise Area for other purposes. 4. Franchise is Non-Exclusive: The City grants this non-exclusive Franchise to PSE to operate, maintain and improve its Facilities within the Franchise Area as a gas transmission and distribution system and an electrical energy transmission and distribution system for PSE's business. 5. Acknowled�ement: PSE acknowledges by its acceptance of the granted privileges, that it has carefully read and fully comprehends the terms and conditions of this Franchise. PSE accepts all reasonable risks of the meaning of the provisions, terms and conditions of the Franchise. 6. Prior Franchise Repealed: Upon the effective date of this ordinance and acceptance of such ordinance and Franchise by PSE, all prior franchises between the City and PSE, or its predecessors in interest, for use of the Franchise Area for placement and operation of Facilities in connection with the distribution and sale of gas and electrical energy shall be deemed repealed. 6 ORDINANCE NO. 5834 7. Existin� Facilities Outside Franchise Area: Existing Faci�ities installed or maintained by PSE in accordance with prior franchise agreements on public grounds and places within the City (but which are not a part of the Franchise Area as defined by this Franchise) may be maintained, repaired and operated by PSE at the location where such Facilities exist as of the effective date of this Franchise for the term of this Franchise; provided, however, that no such Facilities may be enlarged, improved or expanded without the City's prior review and approval pursuant to the provisions of any applicable Laws. 8. Third Parties: Nothing in this Franchise shall be construed to create or confer any privilege or remedy upon any person(s) other than the City and PSE. No action may be commenced or prosecuted against any Party by any third party claiming as a third party beneficiary of this Franchise. This Franchise shall not release or discharge any obligation or liability of any third party to either Party. SECTION IV. Term 1. Len�th of Term: Each of the provisions of this Franchise shall become effective upon PSE's acceptance of the terms and conditions of this Franchise and shall remain in effect for fifteen (15) years, unless it is terminated pursuant to Section XXII (Dispute Resolution). At any time not more than two (2) years nor less than one hundred and eighty (180) calendar days before the expiration of the term of this Franchise, PSE may make a written request and the City may consider, at its sole discretion, renewing this Franchise for an additional five (5) year renewal period, unless either party expresses its 7 ORDINANCE N0. 5834 intention in writing to terminate this Franchise at the conclusion of the fifteen (15) year term. 2. Extension upon Expiration: If the Parties fail to formally renew or terminate the Franchise prior to the expiration of its term or any extension, the Franchise shall be extended on a year-to-year basis (or such term as the Parties may mutually agree) until a renewed, terminated or extended Franchise is executed. SECTION V. Recovery of Costs 1. Administrative Fee: Pursuant to RCW 35.21.860(1)(b), as it exists or may be amended, PSE shall reimburse the City for all actual administrative expenses incurred by the City that are directly related to receiving and approving a permit, (icense and this Franchise, to inspect plans and construction, or for the preparation of a detailed statement pursuant to SEPA (RCW Chapter 43.21C). Where the City incurs actual administrative expenses for review or inspection of activities undertaken through the authority granted in this Franchise (and such expenses are not duplicative of expenses which are reflected in some other City-imposed charge or fee), PSE shall pay such expenses directly to the City. 2. Utilitv Tax: Pursuant to RCW 35.21.870 (Electricity, telephone, natural gas, or steam energy business — Tax limited to six percent — Exception) and RCW 35.21.860(1)(a), as they exist or may be amended, the City may impose a utility tax on PSE. 3. No Franchise Fee: Pursuant to RCW 35.21.860 (Electricity, telephone, or natural gas business, service provider — Franchise fees prohibited — Exceptions), the City may 8 ORDINANCE N0. 5834 not impose a franchise fee or any other fee or charge of whatever nature or description upon PSE. 4. Cost of Publication: PSE shall bear the entire cost of publication of this ordinance. SECTION VI. Assignment and Transfer of Franchise PSE may not assign or transfer this Franchise without the written consent of the City Council, which consent shall not be unreasonably withheld. Any assignee or transferee shall, at least thirty (30) calendar days prior to the date of any assignment or transfer, file written notice of the assignment or transfer with the City, together with its written acceptance of all of the Franchise terms and conditions. PSE shall have the privilege, without such notice or such written acceptance, to mortgage its benefits and privileges in and under this Franchise to the trustee for its bondholders. The Franchise terms and conditions shall be binding upon the Parties' respective assigns and successors. SECTION VII. Compliance with Laws- Reservation of Powers and Authority 1. Compliance: In every aspect related to this Franchise, including but not limited to all Work, PSE shall comply with all applicable Laws, as they exist or may be amended, whether specifically mentioned in this Franchise or not; provided that, in the event of a conflict between the terms of this Franchise and any City-enacted Laws, the terms of this Franchise will control. This Franchise constitutes a valid and enforceable contract between the Parties and may not be modified or amended except as expressly permitted in Section XXV. 2. Le�itimate Municipal Interest: As to matters subject to the terms and conditions of this Franchise, ifthe City determines during the term ofthis Franchise that the assertion 9 ORDINANCE NO. 5834 of a legitimate municipal interest is prohibited by application of federal or state Law,then as to such matter and such municipal interest and consistent with its legal obligations, PSE shall cooperate with the City in a good faith effort to address such municipal interest. In this context, neither Party shall invoke this Franchise as a basis to assert that its consideration of a given issue is excused by operation of the doctrines of estoppel or waiver. 3. Reference to Specific Law or Order: Upon written inquiry by the City, PSE shall provide a specific reference to the federal,state,or local Law or the WUTC order or action establishing a basis for PSE's actions related to a specific Franchise issue. 4. Tariffs: This Franchise is subject to the provisions of any applicable Tariff now or hereafter on file with the WUTC or its successor. In the event that any provision of this Franchise would cause PSE to be out of compliance with any Tariff,the provisions of such Tariff shall control. SECTION VIII. Non-exclusive Franchise 1. Non-exclusive: As provided in Subsection 2.4, this Franchise is non-exclusive. 2. City Use of Franchise Area: This Franchise shall not prevent, prohibit, limit or affect the City's use of the Franchise Area, in a manner consistent with this Franchise; or the City's jurisdiction over the Franchise Area. The Parties agree that the City reserves and retains all of its statutory, inherent and other powers and franchise authority, as they exist or shall exist, and the City shall at all times exercise its retained power in a manner consistent with the terms and conditions of this Franchise. 10 ORDINANCE NO. 5834 3. Municipal Electric Utilitv: Nothing in this Franchise is intended to modify or impair the Parties' respective rights and obligations in the event the City decides to acquire, construct, own, operate and maintain a municipat electric utility. SECTION IX. Permits, Construction and Restoration 1. Free Passa�e of Traffic: PSE shall at all times maintain its Facilities within the Franchise Area so as not to unreasonably interfere with the free passage of traffic or the use and enjoyment of adjoining property. PSE shall at all times post and maintain proper barricades and comply with all applicable Laws, safety regulations and standards during such period of construction. 2. Permit Application Required: Except in the event of an emergency, PSE shall first obtain and comply with all required permits from the City to perform Work on PSE's Facilities within the Franchise Area in accordance with applicable Laws, subject to Subsection 7.1. Work within City streets shall be accomplished through boring rather than open trenching whenever reasonably feasible. If PSE believes boring is not reasonably feasible, PSE's permit application shall detail why it believes boring is not reasonably feasible. The City will not unreasonably deny a request to use open trenching when boring is not reasonably feasible. 3. Facility Placement and Detection: The Parties intend that the specific location of Facilities within the Franchise Area (and similar facility-related matters of a specific nature requiring detailed case-by-case analysis) is to be determined in accordance with applicable Laws (including, without limitation, rights of appeal). PSE shall employ commercially available means consistent with its standards and operating practices to 11 ORDINANCE NO. 5834 ensure that all underground Facilities installed in the Franchise Area subsequent to the date of this Franchise (including, without limitation, Facilities later decommissioned by PSE in accordance with Section XX) are locatable using surface locating technologies routinely used by PSE and/or its contract locators. The City will notify PSE before digging in the Franchise Area and PSE will locate its Facilities, all in accordance with applicable procedures required by Law (e.g. Chapter 19.122 RCW). If PSE fails to locate its underground Facilities within the Franchise Area as required by this subsection and applicable Law, and without limiting any other remedies available to the City under applicable Law, PSE shall evaluate fairly and in good faith, in accordance with applicable Law, any claim submitted by the City for delay costs incurred by the City as a direct result of such unmarked Facilities impacting a Public Improvement Project schedule. 4. Lateral Support: Whenever Work on Facilities within the Franchise Area have caused or contribute to a condition that appears to substantially impair the lateral support of the Franchise Area,the City may direct PSE, at PSE's sole expense,to take such actions as are reasonably necessary within the Franchise Area so as not to impair the lateral support thereof. 5. Limits on Construction: No park, public square, golf course, street rights-of-way or public place of like nature shall be excavated or damaged by PSE if there is a substantially equivalent alternative. The determination of there being a substantially equivalent alternative shall be determined by the City. 6. Bond Requirement: Before undertaking any of the Work authorized by this Franchise, as a condition precedent to the City's issuance of any permits, PSE shall, upon 12 ORDINANCE N0. 5834 the City's request, furnish a bond executed by PSE and a corporate surety authorized to operate a surety business in the State of Washington, in a reasonable amount approved by the Administrator as sufficient to ensure performance of PSE's obligations under this Franchise with respect to the performance of such Work. In lieu of a separate bond for routine individual projects involving Work in the Franchise Area, PSE may satisfy the City's bond requirements by posting a single on-going performance bond in a reasonable amount approved by the Administrator. 7. Workmanship: All Work done by PSE or at PSE's direction or on its behalf within the Franchise Area, including all such Work performed by contractors or subcontractors, shall be considered PSE's Work and shall be undertaken and completed in a workmanlike manner and in accordance with the descriptions, plans and specifications PSE provided to the City. PSE's Work shall not permanently or unnecessarily damage or unreasonably interfere with other franchises, licenses, utilities, drains or other structures within the Franchise Area, or the Franchise Area, and shall not unreasonably interfere with public travel or the free passage of vehicle or pedestrian traffic within the Franchise Area, park uses, and other municipal uses of the Franchise Area. PSE's Work shall comply with all applicable Laws, subject to and in accordance with Subsection 7.1. 8. Material and Installation Methods: As a condition of receiving the privilege to work within the Franchise Area, PSE shall assume full responsibility for using materials and installation methods that are in full compliance with applicable Laws and shatl verify this submittal of documentation of materials and testing reports when requested by the 13 ORDINANCE N0. 5834 City. All costs for performing on-site testing, such as compaction tests, shall be borne by PSE. 9. Dama�e Durin�Work: In case of any damage caused by PSE, or by PSE's Facilities, to the Franchise Area (including but not limited to all City,franchisee, and licensee owned improvements and structures existing therein) PSE agrees to repair the damage at no cost to the City. PSE shall, upon discovery of any such damage, immediately notify the City. The City will inspect the damage and provide PSE a reasonable period of time for comp�etion of the repair. If the City discovers damage caused by PSE within the Franchise Area, the City will give PSE prompt notice of the damage and provide PSE a reasonable period of time to repair the damage. In the event PSE does not make the repair as required in this section, the City may repair the damage, to its satisfaction, at PSE's sole expense. 10. Restoration Requirements: Whenever it shall be necessary for PSE, in the exercise of its rights under this Franchise, to disturb the surface of the Franchise Area, PSE shall restore the surface of the Franchise Area and any other property within the Franchise Area which may have been disturbed or damaged by such Work to at least the same condition as it was in immediately prior to the start of the Work. All such restoration shall conform to the City's applicable construction specifications,trench restoration standards, street overlay requirements and applicable Laws in effect at that time, subject to Subsection 7.1. Restoration shall include all landscaping, irrigation systems and trees within the Franchise Area to the extent the same are disturbed or damaged by PSE in the performance of the Work. The City shall have final approval of the condition of the 14 ORDINANCE N0. 5834 Franchise Area after restoration pursuant to applicable Laws, as they exist or may be amended or superseded, provided that such provisions are not in conflict or inconsistent with the express terms and conditions of this Franchise. 11. Survev Monuments: All survey monuments which are disturbed or displaced by PSE in its performance of any Work within the Franchise Area shall be referenced and restored by PSE, in accordance with WAC 332-120, (Survey Monuments — Removal or Destruction), as it exists or may be amended, and other applicable Laws. 12. Failure to Restore: If PSE fails to restore the Franchise Area in accordance with this section, the City shall provide PSE with written notice including a description of actions the City believes necessary to restore the Franchise Area. If PSE fails to restore the Franchise Area in accordance with this section within thirty(30)calendar days of PSE's receipt of the City's notice, the City, or its authorized agent, may restore the Franchise Area at PSE's sole and complete expense. The privilege granted under this section shall be in addition to others provided by this Franchise. SECTION X. Coordination and Shared Construction 1. Coordination: The Parties shall make reasonable efforts to coordinate any work that either Party may undertake within the Franchise Area to promote the orderty and expeditious performance and completion of such work, and to minimize any delay or hindrance to any construction work undertaken by themselves or utilities with the Franchise Area. PSE and the City shall further each exercise its best efforts to minimize any delay or hindrance to any construction work either may undertake within the Franchise Area. Any associated costs caused by any construction delays to the City or to 15 ORDINANCE N0. 5834 any contractor working for the City due to PSE's failure to submit and adhere to PSE's plans and schedule in relocating or installing PSE facilities shall be the sole responsibility of PSE. PSE shall, at the City's request, also attend construction meetings pertaining to performance of work within the Franchise Area and shall designate a contact person to attend such meetings. PSE's responsibility for performance of all such work is, in all respects, subject to applicable Laws, in accordance with Subsection 7.1. 2. Joint Use Trenches: If PSE or the City shall cause excavations to be made within the Franchise Area, the Party causing such excavation to be made shall afford the other, upon receipt of a written request to do so, an opportunity to use such excavation, provided that: (a) such joint use shall not unreasonably delay the work of the Party causing the excavation to be made; and (b) such joint use shall be arranged and accomplished on terms and conditions satisfactory to both Parties. 3. Joint Use Policies: The City may, during the term of this Franchise, adopt policies with respect to the Franchise Area which encourage joint use of utility facilities within the Franchise Area. PSE shall cooperate with the City and explore opportunities for joint use of utility facilities within the Franchise Area that are consistent with applicable Laws and prudent utility practices. 4. Repair and Replacement of Citv-Owned Street Li�hts: The City retains the right to repair or replace City-owned street lights and associated poles located within the Franchise Area. The City shall provide advance notice to PSE for any such work to be performed by or for the City in the vicinity of PSE's Facilities. The City shall coordinate with PSE for any work which PSE may elect to perform involving PSE's Facilities in 16 ORDINANCE NO. 5834 conjunction with the City's street lighting work, but shall not be obligated to pay any costs to PSE for work PSE elects to perform involving PSE Facilities located within the Franchise Area. 5. Installation of New City-Owned Street Li�hts: The City retains the right to install new City-owned street lights within the Franchise Area. The City shall provide advanced notice to PSE of such new installations and shall coordinate with PSE on the design and installation of such new City-owned street lights to provide for required clearance from existing PSE Facilities then located within the Franchise Area. In the event new City-owned street lights cannot be designed and installed within the Franchise Area to provide required clearance from existing PSE Facilities then located within the Franchise Area, the City shall so notify PSE and either (a) provide PSE reasonable information and opportunity to allow PSE to adjust, modify or relocate such Facilities to provide required clearance prior to installation of the new City-owned street lights, or (b) enter into a mutually acceptable arrangement with PSE to enable PSE to install the new City-owned street lights for the City in a manner to allows for the required clearance. 6. Groundin� Verification Testin� for PSE-Owned Street Li�ht Systems: PSE will periodically test all PSE-owned metal street light poles and associated metal hand hole covers located in the Franchise Area for proper grounding in accordance with all applicable Laws and PSE's then-current engineering test standards and procedures. SECTION XI. Hazardous Materials 1. Written Approval Required: In maintaining its Facilities within the Franchise Area (including, without limitation, vegetation management activities), PSE shall not apply any 17 ORDINANCE N0. 5834 pesticide, herbicide, or other Hazardous Substance within the Franchise Area without prior written approval of the City. The City will not unreasonably withhold its approval, but such approval must be in conformance to the Aquifer Protection regulations of the City. If PSE shall first obtain the City's approval to apply a specific product in accordance with a defined procedure on an ongoing basis throughout the Franchise Area, it shall not thereafter be necessary for PSE to obtain the City's approval on each occasion such product is applied in accordance with such procedure. PSE shall notify the City of any accident by PSE involving PSE's use of Hazardous Substances within the Franchise Area. 2. Release of Hazardous Substance bv PSE: Upon a release of any Hazardous Substance caused by PSE or its contractors, or from PSE's Facilities, within the Franchise Area, PSE shall notify the City within twenty-four(24) hours after PSE discovers or is made aware of the release. PSE shall act promptly to remove (if possible), dispose, or otherwise handle such Hazardous Substance, as necessary, in accordance with applicable Laws. PSE shall be solely responsible for the costs of removal, disposal and/or handling of any Hazardous Substance that is released by PSE or from PSE's Facilities and any associated environmental mitigation requirements imposed by operation of applicable Laws. If Hazardous Substance removal requires removal of fill, landscaping, or other functional material, PSE shall provide substitute nonhazardous substances to replace the removed material, as necessary to restore the premises the same or better condition that existed prior to the Hazardous Substance release. PSE shall obtain all required permits and proceed with the removal operations at its own cost. 18 ORDINANCE NO. 5834 3. Discovery of Hazardous Substance Not Caused bv PSE: If, in the exercise of its rights under this Franchise, PSE discovers a release of any Hazardous Substance within the Franchise Area and such release was not from its Facilities, or caused by PSE or its contractors, PSE sha�l notify the City within twenty-four (24) hours of its discovery. The City will investigate the potential Hazardous Substance release and take all necessary measures to comply with applicable laws, which may include directing other responsible parties to remove and mitigate the Hazardous Substance release. If PSE's operations within the Franchise Area are delayed or its services disrupted by the discovery, investigation, and removal operations, PSE shall have no recourse against the City for such resulting delays or service disruptions; provided that, for clarity, this Franchise does not require PSE to remediate a release of Hazardous Substances found to have been caused by the City or any third party not acting for or on behalf of PSE. SECTION XII. Emergency Work- Permit Waiver 1. Prompt Response Required: In the event of any emergency involving damaged PSE Facilities located in or under the Franchise Area, or if PSE's Facilities within the Franchise Area are in a condition as to immediately endanger the property, life, health or safety of any individual, PSE shall, upon receipt of notification from the City of the existence of such condition, immediately take those actions as are necessary to correct the dangerous condition. 2. Permit Deferred: If and to the extent reasonable actions on PSE's part are necessary to respond to an emergency situation involving its Facilities within the Franchise Area, and such action would otherwise require the issuance by the City of an 19 ORDINANCE N0. 5834 authorizing permit or approval, the City hereby waives the requirement that PSE obtain any such permit or approval as a prerequisite to undertaking such activity; provided, however, PSE shall subsequently apply for any such required permit or approval within ten (10) business days from and after the date of the commencement of such activity otherwise requiring such permit or approval. Further, PSE shall inform the City's permitting authority of the nature, location, and extent of the emergency, and the work to be performed, prior to commencing the work if such notification is practical, or where such prior notification is not practical, PSE shall notify the City's permitting authority on the next business day. To the extent the emergency or PSE's response to the emergency materially interrupts the flow of vehicle or pedestrian traffic (e.g. necessitates temporary traffic lane or sidewalk closures or detours), or otherwise presents a public safety hazard, PSE shall notify police or fire services by calling 911 or an applicable dispatch number as may be provided in writing by the City. PSE shall cooperate with the City and its emergency responders when performing emergency work in the Franchise Area, as necessary to protect public safety and welfare. 3. Public Service Obli�ations: Nothing in this section is intended, nor shall it be construed, as a hindrance to PSE's ability to take such actions as it deems necessary to discharge its public service obligations in accordance with the Laws of the State of Washington. Nothing in this section is intended, nor shall it be construed, as preventing the City from recovering from PSE, if otherwise so entitled in accordance with applicable Law, any extraordinary costs in responding to an emergency situation involving PSE's Facilities within the Franchise Area. 20 ORDINANCE N0. 5834 4. Emer�encv Contacts: PSE's emergency pians and procedures shall designate PSE's responsible local emergency response officials and a direct twenty-four (24) hour emergency contact number for control center operator. SECTtON XIII. Planning and Records of Installation 1. Future Construction Plans: Upon the request of either Party, but not more often than annually unless otherwise agreed upon by the Parties, the Parties will meet to discuss and coordinate regarding future construction activities then being planned by either Party within the Franchise Area, including potential Public Improvement Projects and potential improvements, relocations and conversions to PSE's Facilities within the Franchise Area; provided, however, any such discussions and coordination shall be for informational purposes only and shall not obligate either Party to undertake any specific improvements within the Franchise Area, nor shall such discussions or coordination be construed as a proposal to undertake any specific improvements within the Franchise Area. 2. Plannin� for Public Improvement Projects: The City will provide PSE with copies of its Transportation Improvement Plan and Capital Improvement Plan following their adoption by the City Council. For Public Improvement Projects planned to commence within two (2) years of the plans' adoption, the City will identify the Public Improvement Projects that it believes will require coordination with PSE. Within sixty(60)calendar days of PSE's receipt of the City Council adopted plans and City identified Public Improvement Projects requiring coordination, PSE will notify the City if PSE betieves there are any 21 ORDINANCE N0. 5834 additional planned Public Improvement Projects that require coordination between the Parties. 3. Coordination on Public Improvement Proiects: For any Public Improvement Project that either Party has identified as requiring coordination, the City will notify PSE when it commences design work for the Public Improvement Project and identify a City representative to coordinate the Public Improvement Project with PSE. Within twenty (20) calendar days of receiving such notification, PSE shall designate a representative to coordinate the Public Improvement Project with the City. Throughout the design and project implementation, the project coordinators shall cooperate and share information necessary to efficiently complete the Public Improvement Project. This information may include, but is not limited to, project contacts, project details, applicable project schedules, identification of contractors, location of affected existing and planned Facilities, project status, and detailed and dimensioned plan specifications. 4. Coordinatin� Plans: If PSE has non-emergency plans to perform work that will require disturbing pavement or sidewalks in the same areas the City has plans to resurface, overlay, or reconstruct roads or sidewalks, PSE will coordinate with the City to attempt to schedule its work to occur prior to the City's planned Public Improvement Project. 5. Records: PSE shall at all times keep full and complete plans,specifications, profiles and records in accordance with its standard business practices ("Facility Records") showing the location and size of all its Facilities within the Franchise Area, and such Facility Records shall be kept current by PSE to show thereon the locations of all additional 22 ORDINANCE NO. 5834 Facilities hereinafter installed by PSE within the Franchise Area. PSE shall provide the City, upon the City's request, as required for the City's effective management of the right-of- way, copies of available Facility Records in use by PSE showing the location of its Facilities at specific locations within the Franchise Area. As to any Facility Records so provided, PSE does not warrant the accuracy thereof and, to the extent the location of Facilities are shown, such Facilities are shown in their approximate location. These Facility Records shall be subject to inspection at all reasonable times by governmental officials and agents upon reasonable advance notice to PSE. 6. Desi�n Locates: Upon the City's request, in connection with the design of any Public Improvement Project, PSE shall verify the location of its underground Facilities within the Franchise Area by excavating(e.g., pot holing) at no expense to the City. In the event PSE performs such excavation, the City shall not require any restoration of the disturbed area in excess of restoration to the same condition as existed immediately prior to the excavation. 7. Utility Locates: Notwithstanding the foregoing, nothing in this section is intended (nor shall be construed)to relieve either Party oftheir respective obligations arising under applicable Laws with respect to determining the location of utility facilities. SECTION XIV. Undergrounding of Facilities 1. Under�roundin� Policv and Tariffs: PSE acknowledges that the City desires to promote a policy of undergrounding of Facilities within the Franchise Area. The City acknowledges that PSE provides electrical service on a non-preferential basis subject to and in accordance with applicable Tariffs on file with the WUTC. Subject to and in 23 ORDINANCE NO. 5834 accordance with such Tariffs, PSE will cooperate and participate with the City in the formulation of policy and development of an underground management plan with respect to PSE aerial Facilities within the City. 2. Under�roundin� Reauired for New Facilities: All new Facilities, of 50 kV or less, installed within the Franchise Area during the term of this Franchise shall be located underground; provided that installation of cabinet enclosed switches, transformers and similar equipment will be permitted and installed pursuant to the provisions of any applicable Laws (subject to Subsection 7.1) and specifically subject to and in accordance with applicable Tariffs on file with the WUTC. 3. Tariffs: If, during the term of this Franchise, the City shall direct PSE to underground existing Facilities within the City, such undergrounding shall be arranged and accomplished subject to and in accordance with applicable Tariffs on file with the WUTC. SECTION XV. Moving Buildings within the Franchise Area 1. PSE Approval Required: If any person or entity obtains permission from the City to use the Franchise Area for moving or removal of any building or other object, the City shall, prior to granting such permission, require such person or entity to make any necessary arrangements with PSE for the temporary adjustment of PSE's wires to accommodate the moving or removal of such building or other object. Such necessary arrangements with PSE shall be made, to PSE's satisfaction, not less than fourteen (14) calendar days prior to the moving or removal of said building or other object. 24 ORDINANCE NO. 5834 2. Approval Criteria: In such event, PSE shall at the expense of the person or entity desiring to move or remove such building or other object, adjust any of its wires which may obstruct the moving or removal of such building or other object, provided that: a. The moving or removal of such building or other object which necessitates the adjustment of wires shall be done at a reasonable time and in a reasonable manner so as not to unreasonably interfere with PSE's business. b. To the extent practical, where more than one route is available for the moving or removal of such building or other object, such building or other object shall be moved or removed along the route which causes the least interference with PSE's business. c. The person or entity obtaining such permission from the City to move or remove such building or other object shall be required to indemnify and save PSE harmless from any and all claims and demands made against it on account of injury or damage to the person or property of another arising out of or in conjunction with the moving or removal of such building or other object, to the extent such injury or damage is caused by the negligence of the person or entity moving or removing such building or other object or the negligence of the agents, servants or employees of the person or entity moving or removing such building or other object. SECTION XVI. City Use of PSE Poles 1. Conditions for Use: During the term of this Franchise, and with respect to poles which are Facilities and which are (a) wholly owned by PSE and (b) within the Franchise Area, the City, subject to PSE's prior written consent, which shall not be unreasonably 25 ORDINANCE NO. 5834 withheld, may install and maintain City-owned overhead wires upon such poles for police, fire, traffic control and other noncommercial municipal communications purposes. The foregoing rights of the City to install and maintain such wires are further subject to the following: a. The City shall do the installation and maintenance at its sole risk and expense, in accordance with all applicable Laws, and subject to such reasonable requirements as PSE may specify from time to time (including, without limitation, requirements accommodating PSE's Facilities or the facilities of other parties having the privilege to use PSE's Facilities); b. PSE shall have no obligation arising under the indemnity and insurance provisions of this Franchise as to any circumstances directly or indirectly caused by or related to such City-owned wires or the installation or maintenance of those wires; and c. PSE shall not charge the City a fee or charge for the use of such poles in accordance with this section as a means of deriving revenue therefrom; provided, however,that PSE shall bear any cost or expense in connection with the City's instatlation and maintenance of wires. 2. Postin� of Citv Si�ns: Subject to reasonable rules and regulations prescribed by PSE and subject to RCW 70.54.090 or any other applicable Laws, the City shall have the right to post city signs on PSE's utility poles within the Franchise Area as reviewed and approved by PSE. 3. Administrative Fee: PSE may charge the City an administrative fee for the purposes of reviewing such joint facility installations. 26 ORDINANCE N0. 5834 SECTION XVII. Vegetation Management Plan 1. Balance of Concerns: The Parties recognize that any appropriate vegetation management plan should adequately balance safety, reliability, vegetation health and community aesthetic concerns and the clearance between vegetation and PSE's Facilities necessary for public safety and operational reliability. 2. Coordination Required: PSE will coordinate, in advance, its vegetation management activities within and/or adjacent to the Franchise Area with the City, including but not limited to its Transportation, Fire and Emergency Services, and Community Services Departments. On an annual basis, PSE will give the City a proposed vegetation management plan. Upon the City's written request, but no more often than quarterly, PSE will meet with the City to coordinate the implementation of the plan, provided however that such commitment to coordinate with the City shall not limit PSE's privilege under this Franchise or duty under applicable Laws to remove or trim vegetation which, due to proximity to PSE's Facilities, poses an imminent risk to public safety. 3. Use of Standard Practices: Pruning and removal of vegetation within and/or adjacent to the Franchise Area will be performed using all associated American National Standard Institute (ANSI) standards and best management practices accepted by the International Society of Arboriculture (ISA). At a minimum, pruning and removing shall follow the most recent version of ANSI A300 (Part 7) publication,the most recent version of the ISA Best Management Practices Utility Pruning of Trees publication and applicable City guidelines and regulations. 27 ORDINANCE NO. 5834 4. Tree Trimmin� and Removal: When exercising its rights and duties under applicable Laws to remove ortrim vegetation, PSE shall cooperate and work together with the City to minimize damage to healthy trees in or adjacent to the Franchise Area. If PSE determines it must remove or cut a City tree in a way that removes 40% or more of the total height of the tree, it shall notify the City Forester, or other designee, at least 2 business days in advance of the work and apply for a tree cutting permit if such permit is required by the Renton Municipal Code. If no permit is required by the Renton Municipal Code, PSE shall seek direction from the City Forester, or designee, as to whether it can top the tree or whether it will be required to remove and replace the tree at that location or an alternative location. The City shall not unreasonably deny a permit or request to remove, top or cut a tree that poses a risk to PSE's facilities. 5. Plant Selection: PSE will coordinate with City urban forestry staff the identification of plant species appropriate for a location in proximity to PSE Facilities within the Franchise Area. If tree removal is performed by PSE or at PSE's request, PSE shall fund the cost of any City-required tree replacement that is appropriately sized to minimize risk of future interference with PSE facilities. 6. Debris Removal: PSE shall be responsible for removal of any debris generated during its vegetation management activities within the Franchise Area. The City may, at its sole discretion, remove any such debris within the Franchise Area that is not promptly removed by PSE and bill PSE for the cost of said removal and disposal; provided, the City shall first provide PSE notice and a reasonable period of time to remove the debris. 28 ORDINANCE NO. 5834 7. Future Laws: Subject to Section 7.1 the City reserves the right to adopt by ordinance or resolution specific right-of-way vegetation management standards which may include, but not be limited to, alternate standard practices, identification of permitted or prohibited plant species, and permitting and procedural requirements. 8. Emer�ency Response: The forgoing notwithstanding, PSE shall at all times have the right to remove vegetation in the Franchise Area that has caused a system disruption or failure, or is in imminent risk of doing so, without delay for prior notice. SECTION XVIII. Emergency Management Coordination Annually, upon the request of the City, PSE will meet with the City's emergency management representatives to coordinate emergency operations plans and update contact information and, at least once a year, at the request of the City, PSE personnel will actively participate with appropriate City representatives in training, exercise, and planning activities related to emergency preparedness, response, recovery and mitigation. In connection with and as part of any such meeting to coordinate emergency operations, the Parties wilt, as and to the extent reasonably requested by the City, (a) review and discuss PSE's annual maintenance,safety and inspection plans and records relating to PSE's gas Facilities located within the Franchise Area, (b) review and discuss any reports or notices filed with the WUTC or the Federal Office of Pipeline Safety relating to the integrity or safety of PSE's gas Facilities located within the Franchise Area, and (c) review and discuss any application by PSE for a waiver of any state or federal gas safety rule applicable to the integrity or safety of PSE's gas Facilities located within the Franchise Area. 29 ORDINANCE N0. 5834 SECTION XIX. Relocation of PSE Facilities 1. Relocation Required: The City shall have prior and superior right to the use of the Franchise Area for the installation and maintenance of its utilities and capital improvement projects, and should any conflict arise with City facilities, PSE shall, at no cost to the City, conform to the utilities and capital improvement projects of the City. Wheneverthe City undertakes(or causes to be undertaken)the construction of any Public Improvement Project within the Franchise Area, and such Public Improvement Project necessitates the relocation of PSE's then existing Facilities within the Franchise Area, the City shall: a. Provide PSE, within a reasonable time prior to the City's commencement of the Public Improvement Project, written notice requesting such relocation; and b. Provide PSE with copies of pertinent portions of the City's plans and specifications for such Public Improvement Project. 2. PSE Relocation Plans: Unless other timing is mutually agreed upon by the Parties, PSE shall submit a complete right-of-way permit application with reasonably detailed relocation plans for the Public Improvement Project within sixty (60) calendar days after PSE's receipt of the City's notice and plans and specifications under Subsection 19.1(a) and (b). PSE shall relocate its Facilities within the Franchise Area at no charge to the City. 3. Timin� of Relocation: The City shall include in its notice and plans and specifications submitted to PSE under Subsection 19.1 the City's proposed schedule for PSE's completion of its relocation work for the Public Improvement Project, and PSE shall include in its relocation plans submitted under Subsection 19.2 PSE's proposed schedule 30 ORDINANCE NO. 5834 for completion of PSE's relocation work for the Public Improvement Project. The Parties will thereafter mutually agree in writing upon a final schedule for such relocation, with each Party (a) giving due and good faith consideration to the other Party's proposed schedule and project needs, (b) acting reasonably and (c) not unreasonably withholding its agreement in establishing the final schedule. For the avoidance of doubt, it shall not be unreasonable for PSE to withhold its agreement to the final schedule based on such factors as PSE's inability to obtain materials in a timely manner, PSE's relocation work being dependent on the performance of other work by the City or any third party, or any other cause beyond PSE's reasonable control. PSE shall then complete all relocation work for the Public Improvement Project within the final schedule agreed upon by the Parties. PSE shall be solely responsible for the reasonable, out-of-pocket costs incurred by the City for de►ays in a Public Improvement Project to the extent the delay is caused by or arises out of(1) PSE's failure to comply with the agreed final schedule for the relocation (other than as a result of causes or conditions beyond PSE's reasonable control, including, without limitation, the acts or omissions of the City or any third party), or (2) PSE unreasonably withholding its agreement in establishing the final schedule in breach of its obligation under subsection (c) above. Such out-of-pocket costs may include, but are not limited to, payment to the City's contractors and/or consultants for increased costs and associated court costs, interest, and attorneys' fees incurred by the City to the extent directly attributable to such PSE-caused delay in the Public Improvement Project. 4. City Performance of Relocation Work: If the Parties' agree that elements of relocation work involving PSE's Facilities within the Franchise Area would be most 31 ORDINANCE N0. 5834 efficiently performed by the City or its contractors as part of the City's work on the underlying Public Improvement Project, the Parties may enter into a separate written agreement that details the elements of relocation work to be performed by the City involving PSE's Facilities. Such agreement shall require PSE to be responsible for all direct design and construction costs incurred as a result of its Facilities and may require PSE to be responsible for PSE's pro-rata share of all reasonable indirect costs including, but not limited to, construction management and inspection,traffic control, mobilization,erosion and sedimentation control, trenching, backfill, and restoration. Neither Party will be obligated to enter into any such agreement for the City's performance of relocation work involving PSE's Facilities. In the absence of an agreement by which the City will relocate PSE facilities, PSE remains fully responsible for performing all relocation work itself. 5. Third Partv Construction: Whenever any person or entity, other than the City, requires the relocation of PSE's Facilities to accommodate the work of such person or entity within the Franchise Area; or, the City requires any person or entity to undertake work (other than work undertaken at the City's cost and expense) within the Franchise Area and such work requires the relocation of PSE's Facilities within the Franchise Area, PSE shall have the right as a condition of any such relocation to require such person or entity to make payment to PSE, at a time and upon terms acceptable to PSE, for any and all costs and expenses incurred by PSE in the relocation of PSE's Facilities. 6. Third Partv Construction of Citv Identified Proiect: Any condition or requirement imposed by the City upon any person or entity (including, without limitation, any condition or requirement imposed pursuant to any contract or in conjunction with 32 ORDINANCE NO. 5834 approvals or permits obtained pursuant to any zoning, land use, construction or other development regulation) which requires the relocation of PSE's Facilities within the Franchise Area shall invoke the provisions of Subsection 19.5 above; provided, however, (a) in the event the City reasonably determines and notifies PSE that the primary purpose of imposing such condition or requirement upon such person or entity is to cause the construction of a Public Improvement Project within a segment of the Franchise Area on the City's behalf and (b) such Public Improvement Project is reflected in the City's Transportation Improvement Plan or Capital Improvement Plan,then onlythose costs and expenses incurred by PSE in constructing and connecting new Facilities with PSE's other Facilities shall be paid to PSE by such person or entity, and PSE shall otherwise relocate its Facilities within such segment of the Franchise Area in accordance with Subsections 19.1 through 19.3, above. 7. Alternatives: As to any relocation of PSE's Facilities whereby the cost and expense is to be borne by PSE, PSE may, after receipt of written notice requesting such relocation, submit in writing to the City alternatives to relocation of its Facilities. Upon the City's receipt from PSE of such written alternatives,the City shall evaluate such alternatives and shall advise PSE in writing if one or more of such alternatives are suitable to accommodate the work which would otherwise necessitate relocation of PSE's Facilities. In evaluating such alternatives, the City shall give each alternative proposed by PSE fair consideration with due regard to all facts and circumstances which bear upon the practicality of relocation and alternatives to relocation. If the City determines that such alternatives are 33 ORDINANCE N0. 5834 not appropriate, PSE shall relocate its Facilities as provided in Subsections 19.1 through 19.3, above. 8. Non-Franchise Area: Nothing in this Section XIX or otherwise shall require PSE to bear any cost or expense in connection with the location or relocation of any Facilities existing under benefit of easement or other rights not arising under this Franchise, regardless of whether such easement or other rights are on public or private property and regardless of whether this Franchise coexists with such easement or other rights. SECTION XX. Decommissioning of PSE's Facilities 1. Notification: PSE shall notify the City when it permanently discontinues use of and decommissions any of its Facilities within the Franchise Area. Such notification shafl occur within thirty (30) calendar days of the date PSE decommissions the Facilities. 2. Miti�ation Plan for Permanently Decommissioned Facilities: PSE's notification under Subsection 20.1 shall include a mitigation plan for either removing or leaving in place the decommissioned Facilities. The mitigation plan shall address how and when the Facilities will be removed and shall include any mitigation measures PSE proposes to address impacts ofthe decommissioned Facilities to the Franchise Area. Unless otherwise approved bythe City, removal and mitigation should be accomplished within one hundred and eighty (180) calendar days after the Facilities are permanently decommissioned. 3. City Review of Proposed Plan: Within thirty (30) calendar days of receiving a plan submitted by PSE pursuant to this section,the City will review the plan and either approve the plan or require changes and resubmittal. The City will not unreasonably withhotd approval of PSE's proposed plan, but may require changes if it determines, in its 34 ORDINANCE NO. 5834 reasonable discretion, that the plan fails to adequately mitigate the impacts of PSE's permanently decommissioned Facilities. If PSE's plan proposes leaving permanently decommissioned Facilities in place and the City determines, after consultation with PSE, that the impacts of leaving the Facilities in place cannot be adequately mitigated to the City's reasonable satisfaction, the City may require removal of the Facilities. If the City approves leaving permanently decommissioned Facilities in place, it may condition such approval upon PSE's agreement to remove the Facilities at a later time, such as in conjunction with a subsequent project that includes excavation in the area. Following the City's approval of a mitigation plan, PSE shall promptly and in good faith implement the plan and obtain all required permits for its work in the Franchise Area. 4. Citv Costs: If the Parties fail to agree upon a plan, PSE fails to comply with an approved plan, or circumstances require City action prior to approval of a plan, the City may, but is not required to, take such steps as it deems necessary to remove and/or mitigate for the impacts of the permanently decommissioned Facilities. Any costs incurred by the City as a result of PSE's failure to comply with its obligations under this Section XX with respect to permanently decommissioned Facilities shall be reimbursed by PSE within thirty (30) calendar days of the City invoicing PSE for such costs. 5. Survival of Provisions: The Parties expressly agree that the provisions of this section shall survive the termination, expiration, or revocation of this Franchise. 35 ORDINANCE N0. 5834 SECTION XXI. Rights and Remedies 1. Reservation of Ri�hts: A Party's failure to exercise a particular remedy at any time shall not waive such Party's right to terminate, assess penalties, or assert any equitable or legal remedy for any future breach or default by the other Party. 2. Liability and Obli�ation: Termination of this Franchise shall not release either Party from any liability or obligation with respect to any matter occurring prior to such termination. 3. Iniunctive Relief: The Parties acknowledge that the covenants set forth in this Franchise are essential to this Franchise, and, but for the mutual agreements of the Parties to comply with such covenants, the Parties would not have entered into this Franchise. The Parties further acknowledge that they may not have an adequate remedy at law if the other Party violates such covenant. Therefore, in addition to any other rights they may have, the Parties shall have the right to seek in any court of competent jurisdiction injunctive relief to restrain any breach or threatened breach, or to specifically enforce any of the Franchise covenants should the other Party fail to perform them. SECTION XXII. Dispute Resolution 1. Notice of Default: If there is any dispute or alleged default as to performance under this Franchise,the City shall notify PSE in writing, stating with reasonable specificity the nature of the alleged default. Within seven (7) calendar days of its receipt of such notice, PSE shall provide written response to the City acknowledging receipt of such notice and stating PSE's response. PSE has thirty (30) calendar days ("cure period") from the date of the notice's mailing to: 36 ORDINANCE N0. 5834 a. Respond to the City, contesting the City's assertion(s) as to the dispute or any alleged default and requesting a meeting in accordance with Subsection 22.2, or: b. Resolve the dispute or cure the alleged default, or; c. Notify the City if PSE cannot resolve the dispute or cure the alleged default within thirty (30) calendar days, due to the nature of the dispute or alleged default. Notwithstanding such notice, PSE shall promptly take all reasonable steps to begin to resolve the dispute or cure the alleged default and notify the City in writing and in detail as to the actions that will be taken by PSE and the projected completion date. In such case, the City may set a meeting in accordance with Subsection 22.2. 2. Meetin�: If any dispute is not resolved or any alleged default is not cured or if a Subsection 22.1 meeting is requested, the City shall promptly schedule a meeting between the Parties to discuss the dispute or alleged default. The City shall notify PSE of the meeting in writing and the meeting shall take ptace not less than ten (10) calendar days after PSE's receipt of notice ofthe meeting. Each Party shall appoint a representative who shall attend the meeting, represent their Party's interests, and who shall exercise good faith to resolve the dispute or to reach an agreement on any alleged default and/or any corrective action to be taken. Any dispute (including any dispute concerning the existence of or any corrective action to be taken to cure any alleged default) that is not resolved within ten (10) calendar days following the conclusion of the meeting shall be referred by the Parties' representatives in writing to the Parties' senior management for resolution. If senior management is unable to resolve the dispute within twenty (20) calendar days of such referral (or such other period as the Parties may agree upon), each 37 ORDINANCE N0. 5834 Party may pursue resolution of the dispute through Section XXIII, Arbitration, of this Franchise. All negotiations pursuant to these procedures for the resolution of disputes shall be confidential and shall be treated as compromise and settlement negotiations for purposes of the state and federal rules of evidence. 3. Additional Resolution Options: If, at the conclusion of the steps provided for in Subsections 22.1 and 22.2 above, the City and PSE are unable to settle the dispute or agree upon the existence of a default or the corrective action to be taken to cure any alleged default,the City or PSE (as PSE may have authority to do so) may: a. Take any enforcement or corrective action provided for by Law, including City code; provided such action does not conflict with this Franchise's provisions, and/or; b. Demand arbitration, pursuant to Section XXIII below, for disputes arising out of or related to Sections III, Rights and Privileges Conveyed (or such other sections with respect to the existence of conflicts or inconsistencies with the express terms and conditions of this Franchise and any applicable Laws); XIII, Planning and Records of Installation; XIV, Undergrounding of Facilities (except as preempted by WUTC authority); XVI, City Use of PSE Poles; XVII, Vegetation Management Plan; XVIII, Emergency Management Coordination; and XIX, Relocation of PSE Facilities (excluding project delay claims exceeding thirty thousand dollars ($30,000)) of this Franchise (the "Arbitration Claims"), and/or; c. By ordinance, declare an immediate forfeiture of this Franchise for a breach or default of any material, non-Arbitration Claims,obligations under this Franchise and/or; 38 ORDINANCE N0. 5834 d. Take any action to which it is entitled underthis Franchise or any applicable Laws. 4. Continuation of Obli�ations: Unless otherwise agreed by the City and PSE in writing,the City and PSE shall, continue to perform their respective obligations under this Franchise during the pendency of any dispute. SECTION XXIII. Arbitration 1. Rules and Procedures: The Parties agree that any dispute, controversy, or claim arising out of or relating to Arbitration Claims, shall be referred for resolution to the American Arbitration Association in accordance with the rules and procedures in force at the time of the submission of a request for arbitration. 2. Discoverv: The arbitrators shall allow appropriate discovery to facilitate a fair, speedy and cost-effective resolution of the dispute(s). The arbitrators shatl reference the Washington State Rules of Civil Procedure then in effect in setting the scope and timing of discovery. The Washington State Rules of Evidence shall apply. The arbitrators may enter a default decision against any Party who fails to participate in the arbitration proceedings. 3. Compensatorv Dama�es: The arbitrators may award compensatory damages, including consequential damages. Such damages may include, but shall not be limited to: all costs and expenses of materials, equipment, supplies, utilities, consumables, goods and other items; all costs and expenses of any staff; all costs and expenses of any labor (including, but not limited to, labor of any contractors and/or subcontractors); all pre- arbitration costs and expenses of consultants, attorneys, accountants, professional and 39 ORDINANCE NO. 5834 other services; and all taxes, insurance, interest expenses, overhead and general administrative costs and expenses, and other costs and expenses of any kind incurred in connection with the dispute. The arbitrator may award equitable relief in those circumstances where monetary damages would be inadequate. 4. Award: Any award by the arbitrators shall be accompanied by a written opinion setting forth the findings of fact and conclusions of law relied upon in reaching the decision. The award rendered by the arbitrators shall be final, binding and non- appealable, and judgment upon such award may be entered by any court of competent jurisdiction. 5. Each Partv's Costs: Except as provided in Subsection 23.7 below, each Party shall pay the fees of its own attorneys, expenses of witnesses, and all other expenses and costs in connection with the presentation of such Party's case including,without limitation,the cost of any records, transcripts or other things used by the Parties for the arbitration, copies of any documents used in evidence, certified copies of any court, property or city documents or records that are placed into evidence by a Party. 6. Arbitration Costs: Except as provided in Subsection 23.7 below, the remaining costs of the arbitration, including without limitation, fees of the arbitrators, costs of records or transcripts prepared for the arbitrator's use in the arbitration, costs of producing the arbitrator's decision and administrative fees shatl be borne equally by the Parties. 7. Costs for Multiple Arbitrations: Notwithstanding the foregoing Subsections 23.5 and 23.6, in the event either Party is found during the term of this Franchise to be the 40 ORDINANCE N0. 5834 prevailing party in any two (2) arbitration proceedings brought by such Party pursuant to this Section XXIII,or under any memorandum of understanding provided for in Subsection 19.3 of this Franchise or any other memorandum of understanding between the Parties, then such Party shall be entitled to recover all reasonably incurred costs, fees and expenses, including attorney fees, for any subsequent arbitration brought by them in which they are found to be the prevailing party. 8. Transcript Costs: In the event a Party makes a copy of an arbitration proceeding transcript for its use in writing a post-hearing brief, or an arbitration decision copy to append to a lawsuit to reduce the award to judgment, etc., then that Party shall bear the cost, except to the extent such cost might be allowed by a court as court costs. SECTION XXIV. Alternative Remedies No provision of this Franchise shall be deemed to bar the right of the City or PSE to seek or obtain judicial relief from a violation of any Franchise provision or any rule, regulation, requirement or directive promulgated for non-Arbitration Claims. Neither the existence of other Franchise remedies nor the use of such remedies shall bar or limit the right of the City or PSE to recover monetary damages for violations by the other Party, or to seek and obtain judicial enforcement of the other Party's obligations by means of specific performance, injunctive relief or mandate, or any other remedy at law or in equity. SECTION XXV. Amendments to Franchise This Franchise may only be amended by written instrument, signed by the Parties, specifically stating that it is an amendment to this Franchise and is approved and executed in accordance with State of Washington laws. Without limiting the generality of the foregoing, this 41 ORDINANCE NO. 5834 Franchise shall govern and supersede and shall not be altered, limited or otherwise amended by any permit, approval, license, agreement or other document required by or obtained from the City in conjunction with PSE's exercise or failure to exercise any and all rights, benefits, privileges, obligations or duties in and under this Franchise, unless such permit, approval, license, agreement or other document specifically: a. References this Franchise; and b. States that it supersedes this Franchise to the extent it contains terms and conditions which alter, limit, supplement or otherwise amend the terms and conditions of this Franchise. c. In the event of any conflict or inconsistency between the provisions of this Franchise and the provisions of any such permit, approval, license, agreement or other document, except as expressly required by federal or state Laws and/or superseded by such permit, approval, license, agreement or other document in the manner specified above in this Section XXV, the Franchise provisions shall control. SECTION XXVI. Indemnification 1. C�: In Sections XXVI and XXVII, "City" means the City of Renton, and its elected officials, agents, employees, officers, representatives, consultants (of any level), and volunteers acting for or on behalf of the City in their authorized capacity. 2. Indemnification bv PSE: PSE shall defend, hold harmless, and indemnify the City from any and all third party claims, demands, suits, liability, damages, costs, or expenses, including but not limited to attorneys' fees, to the extent the same are caused by or arise out of(a)the negligence or willful misconduct of PSE or its agents, servants or employees 42 ORDINANCE NO. 5834 in the exercise of its rights granted under this Franchise, (b) the breach by PSE of any of its obligations under this Franchise, or (c) a violation of Laws or an improper release of Hazardous Substances upon the Franchise Area to the extent the same is caused by PSE's Facilities or PSE in the exercise of its rights granted under this Franchise. PSE's duty to defend, hold harmless, and indemnify the City shall not apply to the extent the claims, demands, suits, liability, costs, or expenses are caused by or arise out of the City's negligence or willful misconduct. 3. Title 51 Waiver: Solely to the extent required to enforce the indemnification provided in this Section XXVI, PSE hereby waives immunity under Title 51 RCW in any cases involving the City; provided, however, the foregoing waiver shall not in any way preclude PSE from raising such immunity as a defense against any claim brought directly against PSE by any of its employees. The obligations of PSE under this section have been mutually negotiated by the Parties, and PSE acknowledges that the City would not enter into this Franchise without the foregoing limited waiver of PSE's immunity. 4. Real Estate Indemnity: To the extent a court of competentjurisdiction determines that this Franchise is subject to RCW 4.24.115, (Validity of agreement to indemnify against liability for negligence relative to construction, alteration, improvement, etc.), as it exists or may be amended, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of PSE, its officers, officials, employees, and volunteers and/or the contractor, or the City, its elected officials, officers, officials, employees, and volunteers, and or the contractor, the Party's liability shall be only to the extent of the Party's negligence. 43 ORDINANCE NO. 5834 5. Notice: In the event any matter for which the City intends to assert its rights under this section is presented to or filed with the City, the City shall promptly notify PSE and PSE shall have the privilege, at its election and at its sole costs and expense, to settle and compromise such matter as it pertains to PSE's responsibility to indemnify, defend and hold harmless the City. In the event any suit or action is started against the City based upon any such matter, the City shall likewise promptly notify PSE, and PSE shall have the privilege, at its election and at its sole cost and expense, to settle and compromise such suit or action, or defend the same at its sole cost and expense, by attorneys of its own election, as it pertains to PSE's responsibility to indemnify, defend and hold harmless the City. 6. Survival: The provisions of this section shall survive the expiration or termination of this Franchise if the basis for any such claim, demand, suit or action as referenced in Subsection 26.2 occurred during the term of this Franchise. 7. Ne�otiated: THE PARTIES HAVE SPECIFICALLY NEGOTIATED SECTION XXVI, INDEMNIFICATION. SECTION XXVII. Insurance 1. Insurance Required: PSE shall procure and maintain for the duration of the Franchise, insurance, or provide evidence of self-insurance, against all claims for injuries to persons or damages to property which may arise from or in connection with the exercise of the privileges granted by this Franchise to PSE. PSE shall provide to the City an insurance certificate, and/or a certificate of self-insurance, together with an endorsement on the general and automotive liability policies, naming the City as an 44 ORDINANCE N0. 5834 additional insured upon PSE's acceptance of this Franchise, and such insurance certificate shall evidence the following minimum coverages: a. Commercial �eneral liabilitv insurance for PSE's Facilities, inctuding but not limited to, blanket contractual, property damage, operations, explosions and collapse hazard, underground hazard (XCD) and products completed hazard, with limits not less than five million dollars ($5,000,000) for each occurrence and with limits not less than five million dollars($5,000,000) in the aggregate for bodily injury or death to each person, property damage, or any other type of loss; b. Automobile liabilitv for owned, non-owned and hired vehicles with a limit of three million dollars ($3,000,000) for each person and three million dollars ($3,000,000) for each accident; c. Worker's compensation consistent with the Industrial Insurance laws of the State of Washington. 2. Claims Made Basis: If coverage is purchased on a "claims made" basis, then PSE warrants continuation of coverage, either through policy renewals or the purchase of an extended discovery period, if such extended coverage is available, for not less than three (3) years from the date of termination of this Franchise and/or conversion from a "claims made" form to an "occurrence" coverage form. 3. Deductibles: All deductibles shall be the sole responsibility of PSE. The insurance certificate required by this section shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the aggregate limits of the insurer's liability. 45 ORDINANCE NO. 5834 4. Additional Insured: The City shall be named as an additional insured on the insurance policy, as respects to work performed by or on behalf of PSE and the endorsement naming the City as additional insured shall be indicated on the certificate of insurance or certification of self-insurance. 5. Primary Insurance: PSE's insurance shall be primary insurance with respect to the City. Any insurance maintained by the City shall be in excess of PSE's insurance and shall not contribute with it. PSE shall give the City thirty(30) calendar days prior written notice by certified mail, return receipt requested, in the event of suspension or a material change in coverage. 6. Cancellation: In the event of cancellation or a decision not to renew, PSE shall obtain and furnish to the City evidence of replacement insurance policies meeting the requirements of this section before the cancellation date. 7. Certificates and Endorsements: PSE shall furnish the City with certificates of insurance evidencing the coverage or self-insurance required by this section upon acceptance of this Franchise. The certificates and endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf and must be received and approved by the City prior to the commencement of any Work related to this Franchise. 8. Separate Covera�e: PSE's insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. 9. Self-Insurance: In lieu of the foregoing insurance requirements, PSE may self- insure against such risks in such amounts as are consistent with prudent utility practices. 46 ORDINANCE N0. 5834 PSE shall, upon request, provide the City with sufficient evidence that such self-insurance is being so maintained. 10. No Limitation: The City does not represent that the coverage and minimum limits of insurance required under this Franchise are adequate to protect PSE from all liability. SECTION XXVIII. Notice 1. Whenever notice to or notification by any Party is required, that notice shall be in writing and directed to the recipient at the address set forth below, unless written notice of change of address is provided to the other Party. Any notice or information required or permitted to be given to the Parties under this Franchise may be sent to following addresses unless otherwise specified: The City: City of Renton Administrator, Community and Economic Development Department 1055 South Grady Way Renton, WA 98057 425-430-6588 PSE: Puget Sound Energy, Inc. Municipal Relations P.O. Box 90734 Bellevue, WA 98009-9734 Attn: Municipal Liaison Manager With a copy to: Puget Sound Energy, Inc. P.O. Box 90868 Bellevue, WA 98009-0868 Attn: General Counsel 47 ORDINANCE NO. 5834 2. If the date for making any payment or performing any act is a legal holiday, payment may be made or the act performed on the next succeeding business day which is not a legal holiday. 3. The Parties may change the address and representative by providing written notice of such change by accepted e-mail or certified mail. All notices shall be deemed complete upon actual receipt or refusal to accept delivery. Facsimile or a .pdf e-mailed transmission of any signed original document and retransmission of any signed facsimile transmission shall be the same as delivery of an original document. SECTION XXIX. Miscellaneous 1. As Is: Subject to, and without limiting in any way, any of the express rights or obligations set forth in this Franchise, PSE agrees and accepts the Franchise Area in an "as is" condition, and the City does not make any representations, implied or express warranties, or guarantees as to the suitability, security or safety of the location of PSE's Facilities or the Franchise Area, or possible hazards or dangers arising from other uses or users of the Franchise Area, including any use by the City, the general public, or by other utilities. As between the City and PSE, PSE shall remain solely and separately liable for the Work, function, testing, maintenance, replacement and/or repair of the Facilities or other activities permitted by this Franchise; provided, however, that nothing herein will in any way relieve or absolve the City from any obligation owed to PSE or liability caused by any negligence, gross negligence or willful misconduct of the City or anyone acting under, for or on behalf of the City. 48 ORDINANCE NO. 5834 2. Conflicts: If there is a conflict between this and any previous Franchise between the Parties, the terms of this Franchise shall supersede the terms of the previous Franchise. 3. Contractors (of any tier): PSE's contractors (of any tier) may act on PSE's behalf to the extent that PSE permits its contractors to do so. PSE's contractors (of any tier) shall also have every obligation, duty and responsibility that PSE has in discharging its duties related to this Franchise. 4. Force Maieure: In the event that PSE is prevented or delayed in the performance of any of its obligations under this Franchise by reason(s) beyond the reasonable control of PSE (each, a "Force Majeure Event"), then PSE's performance shall be excused during the Force Majeure Event. Upon removal or termination of the Force Majeure Event, PSE shall promptly perform the affected obligations in an orderly and expedited manner under this Franchise or procure a substitute for such obligation or performance that is reasonably satisfactory to the City. PSE shall not be excused by mere economic hardship or by misfeasance or matfeasance of its directors, officers or employees. As used herein, Force Majeure Events include, but are not limited to, Acts of God, war, acts of domestic terrorism or violence, civil commotion, labor disputes, strikes, earthquakes, fire, flood or other casualty, shortages of labor or materials, government regulations or restrictions, extreme weather conditions, and any failure or delay in the performance by the City or any third party that is not an employee, agent or contractor of PSE. The Parties shall use all commercially reasonable efforts to eliminate or minimize any delay caused by a Force Majeure Event. 49 ORDINANCE NO. 5834 5. Vacation of Ri�ht-of-Way: In the event the City considers vacating any portion of the Franchise Area during the term of this Franchise, the City shall give PSE advance written notice of the same to allow PSE the opportunity to review and comment on the proposed vacation. Thereafter, unless otherwise requested by PSE, the City shall, in its vacation procedure, reserve a public utility easement for PSE's Facilities based on the input received from PSE. 6. Governin� law: This Franchise shall be made in and shall be governed by and interpreted in accordance with the laws of the State of Washington. 7. Jurisdiction and Venue: Any lawsuit or legal action brought by any party to enforce or interpret this Franchise or any of its terms or shall be in the United States District Court for the Western District of Washington or in the King County Superior Court for the State of Washington at the Maleng Regional Justice Center, Kent, Washington. 8. Notice of Tariff Chan�es: PSE shall, when making application for any changes in tariffs affecting the provisions of the Franchise, notify the City in writing of the application and provide City with a copy of the submitted application within five (5) calendar days of filing with the WUTC. PSE shall further provide the City with a copy of any actual approved tariff(s) affecting the provision of this Franchise. 9. Other Obli�ations: This Franchise shall not atter, change or limit PSE's obligations under any other agreement or its obligations as it relates to any other property or endeavor. 50 ORDINANCE NO. 5834 10. PSE's Acceptance: The City may void this Franchise ordinance if PSE fails to file its unconditional acceptance of this Franchise within thirty (30) calendar days from the final passage of same by the City Council. PSE shall file this acceptance with the City Clerk. 11. Remedies Cumulative: Any remedies provided for under the terms of this Franchise are not intended to be exclusive, but shall be cumulative with all other remedies available to the City at law, in equity, or by statutes, unless specifically waived in this Franchise or in a subsequent signed document. 12. Section Headin�s: The Section headings in this Franchise are for convenience only, and do not purport to and shall not be deemed to define, limit, or extend the scope or intent of the section to which they pertain. 13. Severabilitv: In the event that a court or agency of competent jurisdiction declares a material provision of this Franchise to be invalid, illegal or unenforceable, the Parties shall negotiate in good faith and agree,to the maximum extent practicable in light of such determination, to such amendments or modifications as are appropriate so as to give effect to the intentions of the Parties. If severance from this Franchise of the particular provision(s) is determined to be invalid, illegal or unenforceable and/or will fundamentally impair the value of this Franchise, either Party may apply to a court of competent jurisdiction to reform or reconstitute the Franchise so as to recapture the original intent of said particular provision(s). All other provisions of the Franchise shall remain in effect at all times during which negotiations or a judicial action remains pending. 51 ORDINANCE N0. 5834 14. Survival: With respect only to matters arising during the period of time this Franchise shall be in full force and effect, the Parties intend that any term or condition applicable to such matters shall survive the expiration or termination of this Franchise to the extent such survival can be reasonably inferred under the circumstances presented and to the extent such an inference is necessary to prevent substantial injustice to an injured Party. SECTION XXX. Effective Date This ordinance shall be in full force and effect from and after its passage, approval, and five (5) calendar days after its legal publication as provided by law, and provided it has been duly accepted by PSE. PASSED BY THE CITY COUNCIL this 3rd day of April , 2017. � Jaso A. Seth, ity Clerk APPROVED BY THE MAYOR this 3rd day of Apri 1 , 2017. � Denis Law, Mayor !`���a�a��n i i��►r►,i Approved as to form: ``�..���4��„R„��IV j�Q��i.,,� ..���e `=c,�:''`, �'',, ti '-. �. -' ' �; . L � : * � SEA = * = Shane Moloney, City Attorney , , _ _ ,, � . '�., x � �� � . y . .� � . Date of Publication: 4/7/2017 (summary) ���i,�cO,Pp���H�����������`�Q,�6;``�.�� i����f,ORA;Ep,gE\```�� ORD:1917:3/16/17:scr 52 ORDINANCE NO. 5834 UNCONDITIONAL ACCEPTANCE The undersigned, PSE, accepts all the privileges of the above-granted franchise, subject to all the terms, conditions, and obligations of this Franchise. DATED: D � / G V , 2017. Puget Sound Ener y, Inc. B �` , / 6 GE.- Y� Print Name: �'����� � K�H Its: ,C��,e�C.l C%� /�L-�'�/�//�/Lr% 53