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City of Tukwila <br />Public Works Department - Henry Hash, Director <br />INFORMATIONAL MEMORANDUM <br />TO: Transportation and Infrastructure Committee <br />FROM: Robin Tischmak, City Engineer d <br />BY; Gail Labanara, Public Works Analyst <br />CC: Mayor Ekberg <br />DATE: February 23, 2018 <br />SUBJECT: Ordinance - Verizon Wireless Small Cell Technology Franchise Agreement <br />ISSUE <br />Approval of Verizon Wireless Franchise Ordinance. <br />Allan Ekberg, Mayor <br />BACKGROUND <br />Seattle SMSA Limited Partnership, headquartered in Delaware, is doing business as Verizon Wireless. Verizon is the second largest <br />U.S. telecommunications service provider and has its roots in the breakup of the Bell System. Verizon was formed in 2000 from a <br />merger between Bell Atlantic and GTE. Verizon Wireless provides a full-service communications systems industry in the US and <br />Europe. Verizon Wireless is currently in the stages of deploying small cell technology to expand the capacity of its wireless network. <br />ANALYSIS <br />The attached Franchise Ordinance establishes permission for Verizon's deployment of small cellular technology in the City's right-of- <br />way. Some of the features of the Verizon Franchise include: <br />• Definitions for clarity of references <br />• Provisions that the City provides no warranty in the right-of-way and will not defend Verizon for peaceable possession or <br />use of the franchise area <br />• Provided provisions allowing the City to require notice to the public for work that will disturb or disrupt public property. <br />Clarifies that the City can protect the public health, safety, and welfare by requiring facilities to be installed at a particular <br />time, place, or manner <br />• Establishes a duty to restore the right-of-way to a condition as good or better than before the construction and provides <br />a warranty of same. Protects private property by requiring Verizon to restore any private property damaged, disturbed, <br />or altered by Verizon <br />• Provides that any contractors or subcontractors of Verizon that perform work in the right-of-way must comply with the <br />City's indemnity and insurance requirements and mandates that Verizon take responsibility for all work performed by <br />Verizon's contractors and subcontractors <br />• Specifies the City's stop work authority should work be performed in an unsafe manner <br />• Provides for revocation of the franchise should Verizon's business end up in receivership <br />• Clarifies that the franchise does not preclude the City from constructing its own utility facilities, repairing, maintaining, or <br />widening the right-of-way. <br />FINANCIAL IMPACT <br />Under the terms of the Franchise, Verizon Wireless will pay a $5,000 administrative fee within 30 days of franchise approval. <br />Per RCW 35.21.860, cities may charge site-specific charges to providers of personal wireless services under certain circumstances <br />before the City issues a use permit. This Franchise tracks that statutory language and provides that Verizon and the City will determine <br />applicable site-specific charges at the use permit stage for eligible facilities. <br />RECOMMENDATION <br />Council is being asked to approve the Ordinance that will grant a Franchise Agreement to Verizon Wireless for Small Cell Technology <br />and consider this item at the February 26, 2018 Committee of the Whole and subsequent March 5, 2018 Regular Meeting. <br />Attachment: Draft Franchise Ordinance <br />W:1PW Eng1PROJECTS1FranchiselTelecom\VERIZON wirelessllnfo Memo Verizon 020918.docx <br />75 <br />