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TO: <br />FROM: <br />r I <br />Public Works Department Henry Hash, Director <br />INFORMATIONAL MEMORANDUM <br />Transportation and Infrastructure Committee <br />Henry Hash, Public Works Director <br />BY: Cyndy Knighton, Senior Program Manager <br />CC: Mayor Ekberg <br />DATE: May 31, 2019 <br />SUBJECT: Astound Broadband, LLC Franchise Agreement <br />Ordinance 2445 <br />Extension of Franchise Term <br />Allan Ekberg, Mayor <br />ISSUE <br />Approve an ordinance modifying Ordinance 2445 extending the franchise term with Astound <br />Broadband, LLC, to August 11, 2020. <br />BACKGROUND <br />State law provides cities the authority to establish franchises to telecommunication providers who <br />wish to occupy city owned rights -of -way. Tukwila Municipal Code 11.32.060 requires all <br />telecommunication providers to obtain franchise agreements with the City prior to approval to <br />construct, maintain and operate within the City limits. On August 4, 2014, the City Council passed <br />Ordinance 2445, granting a five-year franchise to Astound Broadband, LLC (d.b.a. "Wave"). The <br />current franchise agreement term ends on August 11, 2019. <br />DISCUSSION <br />A request to extend the franchise agreement by five years was submitted by Wave on May 8, <br />2019. Section 3 of Ordinance 2445 allows the City to extend the franchise by up to one year <br />beyond the term of the expiration date to allow processing of a renewal — meaning a new franchise <br />agreement would be negotiated during the one-year extension. Staff recommends granting the <br />one-time, one-year extension to allow time for a new franchise agreement to be developed and <br />agreed upon by both parties. <br />FINANCIAL IMPACT <br />There is no direct financial impact to the one-year extension but developing a new franchise <br />agreement will require staff time to complete. <br />RECOMMENDATION <br />The Council is being asked to approve the Ordinance and consider this at the June 10, 2019 <br />Committee of the Whole meeting and subsequent June 17, 2019 Regular Meeting. <br />ATTACHMENTS <br />• Draft Ordinance <br />• Letter of Request for Extension <br />w:\pw eng\projects\franchise\telecom\astound\information memo - franchise extension 6-4-19.docx <br />21 <br />