TIC 2017-11-28 Item 2A - Ordinance - Verizon Franchise Agreement

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City of Tukwila Public Works Department - Robin Tischmak, Acting Director Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure Committee FROM: Robin Tischmak, Acting Public Works Director BY; Gail Labanara, Public Works Analyst CC: Mayor Ekberg DATE: November 22, 2017 SUBJECT: Ordinance — Verizon Wireless Franchise Agreement ISSUE Approval of Verizon Wireless Franchise Ordinance. BACKGROUND Seattle SMSA Limited Partnership, headquartered in Delaware, is doing business as Verizon Wireless. Verizon is the second largest U.S. telecommunications service provider and has its roots in the breakup of the Bell System. Verizon was formed in 2000 from a merger between Bell Atlantic and GTE. Verizon Wireless provides a full-service communications systems industry in the US and Europe. ANALYSIS The attached Franchise Ordinance would allow Verizon to continue operating and maintaining its fiber optic system in the City's right-of-way and facilitate future expansion projects. Some of the main changes to the Verizon Franchise include: • Added definitions for clarity of references • Added provisions that the City provides no warranty in the right-of-way and will not defend Verizon for peaceable possession or use of the franchise area • Provided provisions requiring notice to the public for work that will disturb or disrupt public property. Clarifies that the City can protect the public health, safety, and welfare by requiring facilities to be installed at a particular time, place, or manner • Establishes a duty to restore the right-of-way to a condition as good or better than before the construction and provides a warranty of same. Protects private property by requiring Verizon to restore any private property damaged, disturbed, or altered by Verizon • Provides that any contractors or subcontractors of Verizon that perform work in the right-of-way must comply with the City's indemnity and insurance requirements and mandates that Verizon take responsibility for all work performed by Verizon's contractors and subcontractors • Specifies the City's stop work authority should work be performed in an unsafe manner • Provides for revocation of the franchise should Verizon's business end up in receivership • Clarifies that the franchise doesn't preclude the City from constructing its own utility facilities, repairing, maintaining, or widening the right-of-way. FINANCIAL IMPACT Under the terms of the Franchise, Verizon Wireless will pay a $5,000 administrative fee within 30 days of franchise approval. RECOMMENDATION Information only. Verizon has additional changes to the Insurance requirements that will need to be reviewed by the City Attorney. The final version will be presented to Committee and Council in early 2018. Attachment: Draft Franchise Ordinance W:\PW Eng \PROJECTS\Franchise\Telecom\VERIZON wireless \Info Memo Verizon draft 112217.docx 1