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City of Tukwila <br />Thomas McLeod, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Transportation & Infrastructure Committee <br />FROM: Joel Bush, Chief Information Officer <br />BY: Eric Compton, Franchise Analyst <br />CC: Thomas McLeod <br />DATE: 07/03/2024 <br />SUBJECT: Franchise Agreement with Wholesail Networks <br />ISSUE <br />Approve and ordinance granting Wholesail Networks a Franchise Agreement with a term of five <br />(5) years. <br />BACKGROUND <br />State law provides cities the authority to establish franchises to telecommunication providers <br />who 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. <br />DISCUSSION <br />Wholesail Networks, doing business as Ziply Fiber, is a local internet service provider providing <br />competition to incumbent providers like Century Link and Comcast. They do not have a <br />consumer presence in the City yet but they are looking to expand their coverage. They also <br />provide back -haul services to connect regions across the northwest. Wholesail is seeking to <br />upgrade the infrastructure they have in place, as well as expand into the consumer market in <br />Tukwila. <br />FINANCIAL IMPACT <br />Under the terms of the Franchise, Wholesail is required to pay the City a $5000 administrative <br />fee. <br />RECOMMENDATION <br />Council is being asked to approve the Ordinance granting Wholesail Networks a Franchise <br />Agreement and forward this item to the consent agenda at the August 05, 2024 Regular Council <br />Meeting. <br />ATTACHMENTS <br />Wholesail Networks Franchise Agreement <br />1 <br />