HomeMy WebLinkAboutCOW 2005-09-12 Item 4A - Ordinance - Amend Ord #1439 Sprint Communications Franchise Agreement COUNCIL AGENDA SYNOPSIS
t� 111 f 9 s y i Initials
I2'E�rNo.
k t 19 MeetenR Date j Prepared by I Mayor's renew I Council tevtew
wi r 9/12/05 1 FI -,4l I L
7908 1 1 1
ITEM INFORMATION
CAS NUMBER: 05-121 'ORIGINAL AGENDA DATE. SEPTEMBER 12, 2005
AGENDA I1J M TITLE Amend Ordinance No. 1439, Sprint Communications Franchise Agreement
CATEGORY Dtscusston Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date Mtg Date Mtg Date Mtg Date 9/12/ 05 Mtg Date Mtg Date Mtg Date:
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PI/
SPONSOR'S In 1987, Sprint Communications was granted a 30 -year franchise to construct
SUMMARY communication equipment in the City right -of -way at three specific locations. They now
would like to expand their approved franchise area to include the intersection of
Interurban Ave S and Fun Center Way with minimal impact. This additional location
requires an amendment to the ordinance and franchise agreement.
REVIEWED BY COW Mtg CA &P Cmte F &S Cmte Transportation Cmte
Utiltttes Cmte Arts Comm. Parks Comm. Planning Comm.
DA I'E. 9/7/05
RECOMMENDATIONS:
SPONSOR /ADMIN Amend Ordinance of Franchise Agreement with Sprint.
COMMITTEE Forward to COW and Regular with approval.
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
0.00 $0.00
Fund Source:
Comments
MTG. DATE RECORD OF COUNCIL ACTION
9/12/05
MTG. DATE ATTACHMENTS
9/12/05 Information Memo dated August 31, 2005
Ordinance No. 1439 and Amended Ordinance
Utilities Committee Meeting Minutes from September 7, 2005
INFORMATION MEMO
To:
From:
Date:
Subject:
Mayor Mullet
Public W orks Directo~
August 31, 2005
Franchise Amendment - Sprint Communications Company L.P.
ISSUE
Ordinance No. 1439 (Attachment 1) granting Sprint Communications Company L.P. (formerly
known as US Sprint Communications Company) franchise needs to be amended.
BACKGROUND
On July 20, 1987, the City granted Sprint Communications a 3D-year franchise to construct,
operate, and maintain communications equipment in the City right-of-way. The franchise
grant authorized Sprint to construct, maintain, and operate communications equipment at three
specific locations:
. South Grady Way where the same is crossed by the Union Pacific right-of-way
. South 180111 Street where the same is crossed by the Union Pacific right-of-way
. Strander Boulevard where the same is crossed by the Union Pacific right-of-way
DISCUSSION
Sprint Communications has submitted a request to the City to construct a lateral from their
existing fiber optic infrastructure. Since the lateral is outside their approved franchise area,
Ordinance No. 1439 must be amended to include the proposed lateral.
Attachment 2 is the proposed franchise amendment. The amendment incorporates the
additional location. Specifically, Sprint will construct a lateral from their existing fiber optic
system along the west side of the Union Pacific right-of-way to the 360 Network manhole on
the comer of Interurban Avenue and Fun Center Way. We expect minimal impact in the right-
of-way since the lateral will be constructed using directional bore.
As a condition of the franchise amendment, Sprint will pay the City $5,000 in administrative
fees and obtain an approved permit.
RECOMMENDATION
Forward to Utilities Committee, Committee of the Whole, and Regular Council for franchise
approval! disapproval determination.
attachments: 1) Ordinance No. 1439
2) Franchise Amendment
(hJ]ccIUlilio.s eomm;"",,-SpriDt Canmumcarloos)
CITY OF TUKWILA
0042.08003
JEH/naa
04/14/87
R: 07/16/87
WASHINGTON
ORDINANCE NO. / tj....:f q
"r
AN ORDINANCE OF THE CITY OF TUKWILA, WASHINGTON,
GRANTING US SPRINT COMMUNICATIONS COMPANY, A NEW YORK
GENERAL PARTNERSHIP, THE RIGHT, PRIVILEGE, AUTHORITY AND
FRANCHISE TO CONSTRUCT, OPERATE, MAINTAIN, REPLACE AND
REMOVE CERTAIN COMMUNICATIONS EQUIPMENT UNDER, ALONG,
ACROSS AND THROUGH CERTAIN CITY STREETS FOR THE PURPOSE
OF OPERATING AS A CARRIER OF LONG DISTANCE TELE-
COMMUNICATIONS TRAFFIC.
WHEREAS, US Sprint Communications Company (hereinafter "US
Sprint") is a telecommunications company currently involved in the
construction of an all digital communications network utilizing
predominantly fiber optic technology, and
WHEREAS, as part of such network, US Sprint has designed a
system of fiber optic cable which will connect Oroville,
California and Seattle, Washington, and
WHEREAS, a portion of this route will pass through the City
of Tukwila, and us Sprint has applied to the City for a franchise
to install fiber optic cable in certain City streets and public
right-of-way, and
WHEREAS, the City Council has determined to grant the
franchise to US Sprint upon certain terms and conditions which the
Council deems necessary due to the unique nature of fiber optic
cable, now, therefore,
THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO
ORDAIN AS FOLLOWS:
Section 1.
Franchise Granted.
The City of Tukwila hereby
grants to US Sprint, a New York general partnership, the right,
authority,
privilege and franchise to construct,
replace,
maintain, use and operate equipment and facilities for an
underground fiber optic telecommunications system within the
following streets and property:
A. South Grady Way where the same is crossed by Union
Pacific Right of Way;
B. Southwest 43rd Street (S. 180th Street) where the
same is crossed by the Union Pacific right of way,
- 1 -
C. Strander Boulevard (S.W. 27th Street), where the
same is crossed by the Union Pacific right of way.
Section 2. Installation Standards.
A. Pursuant to undergrounding requirements
Tukwila Municipal Code, all facilities and
comprising us Sprint I s fiber optic system in
to which this franchise applies shall be
underground at a minimum depth of 42 inches.
of the
equipment
the areas
installed
B. All facilities shall be installed and maintained at
such places and positions as shall least interfere with
the free passage of traffic and in accordance with the
laws of the state of Washington and the ordinances of
the City of Tukwila regulating such construction.
C. The following specific construction standards shall
apply to construction, maintenance and repair of all
facilities constructed pursuant to this franchise:
1. All construction standards and plans specified
in the Tukwila Municipal Code as it exists at the
time of construction, maintenance or repair.
2. All excavation standards set forth in the
Tukwila Municipal Code as it exists at the time of
construction, maintenance or repair.
3. The typical roadway bore plans, sheets I, 2
and 3 of 3 as modified and as attached to this
ordinance as Exhibit A and incorporated herein by
this reference as if fully set forth.
D. Whenever it shall be necessary for us Sprint to excavate
in any area, us Sprint shall without delay restore the
surface of said area as nearly as practical to the same
condition it was in before the excavation and in accordance
wi th City standards currently in effect at the time of the
restoration.
Section 3. Relocation.
A. Whenever the City determines, in its discretion, that it
is necessary for any facilities of us Sprint to be moved or
relocated in order to accorrunodate the improvement of any
area, including but not limited to, the grading or widening
of any existing or future street, alley, avenue, highway or
other public right-of-way or property, us Sprint shall
promptly submit plans for such move or relocation to the
City. Within 90 days from approval of the plans by the City,
US Sprint shall move or relocate such faci 1 i ties wi thin the
area for which this franchise is granted. All costs of
moving or relocating such facilities, including but not
limited to, all costs of design, engineering and
construction, shall be the sole responsibility of us Sprint.
B. Whenever any person or entity, other than the City or
any person acting under the direction or control of the City,
requests us Sprint to relocate its facilities in order to
accommodate the work or facilities of such person or entity
within the area for which this franchise is granted, then us
Sprint shall have the right to impose such terms and
conditions for such relocation as US Sprint deems
appropriate.
Section 4.
Indemnification and Release.
A. In
operation
conduits,
the construction, installation, repair,
and maintenance of all conductors, wires,
substations, apparatus, appliances and other
- 2 -
facili ties, US Sprint shall use reasonable and proper
precautions to avoid damage to persons or property.
B. US Sprint hereby agrees to protect and save
harmless the City, its officers, agents and employees,
from all claims, actions or damages of every kind or
description which may accrue to or be suffered by any
person or persons, corporation or property by reason of
or occasion in whole or in part by any act or activity
carried on by US Sprint, its officers, agents, servants
or employees in the exercise or in furtherance of the
privileges and authority granted herein, whether or not
it is alleged that the City is responsible to any
extent, and including specifically suits by employees of
US Sprint against the City. To this extent, US Sprint
waives whatever rights against such suit it may have by
virtue of the State Workers' Compensation laws. In the
event any claim or demand is presented to or filed with
the City which may give rise to US Sprint's duty to hold
the City harmless, the City shall, within a reasonable
time, notify US Sprint of such claim and demand, and US
Sprint shall have the right, at its election, to settle
or compromise such claim or demand. In the event any
suit or action is commenced in which the City is named
as a party, and which suit or demand alleges facts which
might give rise to US Sprint' 5 obligation to hold the
City harmless, US Sprint shall be timely notified
thereof, and US Sprint shall have the right, at its sole
cost and expense, to defend, settle or compromise such
suit or action by attorneys of its own election. Should
US Sprint decline to defend such suitor action and it
is determined by a court of law that US Sprint has a
duty under this franchise to hold the City harmless in
connection with the cause of action alleged in such suit
or action, US Sprint hereby agrees to reimburse the City
for the City's costs and expenses, including reasonable
attorney's fees incurred in defending such suit or
action, and in prosecuting the City's right to be held
harmless.
C. The provisions of this section shall not be
construed to require US Sprint to hold harmless, appear
and defend, pay any judgment or reimburse the City's
costs as to clOy claim, demand, suit or action which
arises out of the sole negligence of the City.
D. The City shall have the right at all times to
participate through its own attorney in any suitor
action which arises out of any right, privilege and
authority granted by or exercised pursuant to this
franchise where the City determines that such
participation is required to protect the interests of
the City or the public.
E. US Sprint hereby releases and agrees to save the
City, its officers, agents and employees, harmless from
any and all losses, expenses, lost revenues and any
other damage to persons or property, including, but not
limited to damage to or destruction of US Sprint
facilities, or any other liability of whatsoever nature
or kind, other than the reasonable cost of repairing
damage to US Sprint facilities caused by or occuring as
the result of a negligent act of the City, its officers,
agents or employees.
Section 5 .
Insurance.
US Sprint shall obtain and shall
continuously maintain during the term of this permit public
liabi I i ty insurance written on an occurrence basis in an amount
- 3 -
not less than $5,000,000 per person and $10,000,000 per occurrence
for personal injuries and property damage arising out of the
exercise of the franchise herein granted. The policy of insurance
shall name the City as an additional insured and shall contain a
provision that it will not be canceled or reduced without sixty
(60) days advance written notice to the City.
The form of the
policy shall be approved by the City.
Section 6. Nonexclusive Franchise. This franchise is not and
shall not be deemed to be an exclusive franchise.
This franchise
shall not in any manner prohibit the City from granting other and
further franchises, permits or rights over, upon I under, in and
along the areas to which this franchise applies \'lhich do not
unreasonably interfere with US Sprint's rights under this
franchise. This franchise shall not prohibit nor prevent the City
from using the franchise area or affect the jurisdiction of the
City over the same or any part thereof.
Section 7. Compliance.
A. If US Sprint shall fail to comply with any provision of
this franchise, the City may compel compliance by serving
upon US Sprint a written notice of the violation and the
direction to comply within thirty (30) days from the date the
order is received by US Sprint. If US Sprint is not in
compliance with this franchise after expiration of said
thirty (30) day period, the City may declare an immediate
forfeiture and termination of this franchise, provided,
however, that if any failure to comply with this franchise by
US Sprint cannot be corrected with due diligence within said
thirty (30) day period, then the City shall extend the time
for compl iance for such time as may be reasonably necessary
for US Sprint to comply, so long as US Sprint commences
promptly and diligently to affect such compliance.
B. The notice requirements of paragraph (A) of this section
shall not apply if the noncompliance of US Sprint results, in
the opinion of the City, in any emergency or life threatening
condition. In such case, the City may set a period of less
than thirty (30) days for US Sprint to comply and may set
such conditions and specifications for compliance as the City
may deem reasonable under the circumstances. In the event
that US Sprint fails to comply with any time set for
compliance or with any condition set for compliance under
this paragraph, the City may declare an immediate forfeiture
and termination of this franchise and may take whatever steps
the City deems necessary to correct the emergency condition
or restore safety. In such event, US Sprint shall be liable
to the City for all costs and expenses incurred in taking
such corrective action.
C. Nothing herein shall limit the remedies available to the
Ci ty in the event of noncompliance by US Sprint. The City
may sue for specific performance and/or damages in addition
to the remedies provided herein.
- 4 -
D. In the event this franchise is forfeited or terminated
for any reason stated herein, US Sprint shall promptly remove
all of its equipment and facilities from the areas for which
this franchise is granted at US Sprint's sole cost and
expense, provided, that as an al ternati ve to removal, the
City may, at the City's sole option, allow US Sprint to
abandon its equipment and facilities in place.
Section 8.
other Permits Required.
Nothing in this
franchise shall relieve US Sprint of the obligation to obtain any
and all necessary federal, state and City permits for the
construction of i-ts facilities ~Jithin the City of Tukwila,
including, but not limited to, an excavation permit as required by
the Tukwila Municipal Code and street use permits as required by
the Tukwila Municipal Code. US Sprint shall be required to obtain
all necessary permits prior to the commencement of any work in the
franchise areas.
Section 9 .
Assignments.
The rights granted by this
ordinance inure to the benefit of US Sprint, and any parent,
subsidiary, affi I iate or any successor entity now or hereafter
existing.
The rights shall not be assignable, by sale, merger,
lease or otherwise, whether voluntary or involuntary, without the
express written consent of the governing body of the City, except
US Sprint may assign its rights under this ordinance to a parent,
subsidiary, affiliate or successor entity without consent so long
as (1) such parent, subsidiary, affiliate or successor assumes all
obligations of US Sprint hereunder, and (2) is bound to the same
extent as US Sprint hereunder.
Any required consent is to be
evidenced by an ordinance of the governing body of the City that
fully recites the terms and conditions, if any, upon which consent
is given.
Section 10.
Franchise Term.
The franchise granted by this
ordinance shall be for a period of 30 years, commencing on the
date this ordinance becomes effective, provided, that US Sprint
shall have no rights under this franchise unless and until US
Sprint fi les with the City a written consent to all terms and
conditions of this franchise ordinance, and the franchise granted
by this ordinance shall be null and void if such written consent
is not filed within thirty (30) days after the effective date of
this ordinance.
- 5 -
Section 11. Amendment of Franchise. The franchise set forth
in this ordinance may be amended at any time with the consent of
both parties.
Section 12.
Police Powers Not Affected.
Nothing herein
shall be deemed to affect the City's ability to exercise its
police powers.
Section 13. Administrative Fee. Pursuant to RCW 35.21.860,
an administrative fee is hereby imposed for the grant of this
franchise in the amount of $3,000.00, which the City Council
determines to be the actual costs of the City's receiving and
approving this franchise and inspecting plans and construction.
US Sprint shall pay this administrative fee at the time of its
consent to the terms of this franchise and US Sprint shall have no
rights under this franchise unless and until US Sprint pays such
administrati ve fee.
The City expressly reserves the right to
charge additional administrative fees if this franchise is
amended. Such fees shall be determined at the time of amendment.
Section 14.
Notices.
Any notices required to be given by
this franchise shall be served upon the parties at the following
addresses:
Ci ty of Tukwila
Public Works Director
6200 Southcenter Blvd.
Tukwila, WA 98188
US Sprint Communications Company
Director, Network Route Department
P.O. Box 11315
Kansas City, MO 64112
Notices deposited in the United states Mails, postage
prepaid, and addressed as set forth above, shall be deemed
received and served upon the party to whom the notice is addressed
three (3) days after deposited in the mails.
Section 15.
Severability.
If any term, provision,
condi tion, or portion of this ordinance shall be held to be
invalid, the City may, at its option, deem the entire franchise to
be affected and thereby nullified. However, in the event of such
a determination of invalidity as to any part of this ordinance,
- 6 -
the City may elect to treat the portion declared invalid as
severable and enforce the remaining provisions of this ordinance.
Section 16.
Effecti ve Date.
This ordinance shall take
effect and be in full force five (5) days after publication of
the attached summary which is hereby approved.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, at a regular meeting thereof this .~ () 1jI day of
ill /f.../
o /
, 1987.
ATTEST/AUTHENTICATED:
~.
"LGrc..( ./
, I Y CLERK,
~Afi~
MAXINE ANDERSON
- 7 -
DRAFT
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING A FRANCHISE
AGREEMENT TO SPRINT COMMUNICATIONS COMPANY,
LP, FORMERLY KNOWN AS US SPRINT, TO CONSTRUCT,
OPERATE, MAINTAIN, REPLACE, AND REMOVE CERTAIN
COMMUNICATIONS EQUIPMENT UNDER, ALONG, ACROSS
AND THROUGH CERTAIN CITY STREETS FOR THE PURPOSE
OF OPERATING AS A CARRIER OF LONG DISTANCE
TELECOMMUNICATIONS TRAFFIC; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, Sprint Communications Company LP (hereinafter referred to as "Sprint") is
a telecommunications company currently involved in the construction of a digital
communications network utilizing predominantly fiber optic technology; and
WHEREAS, Sprint currently has a non-exclusive 3D-year franchise agreement (Ordinance
No 1439) with the City of Tukwila, hereinafter referred to as "City," that expires July 20, 2017,
and
WHEREAS, Sprint has proposed to construct a fiber optic cable system that is outside the
franchise area, and is a change to the franchise agreement; and
WHEREAS, Sprint's proposed route requires the use of certain portions of City rights-of-
way for the installation, operation, and maintenance of a fiber optic system, and
WHEREAS, the Revised Code of Washington (RCW) authorizes the City to grant and
regulate non-exclusive franchises for the use of public streets, right-of-ways, and other public
property for transmission of communications,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Franchise Agreement Amended. Section 1 of Ordinance No 1439 is hereby
amended to read as follows:
The City hereby grants to Sprint the right, authority, privilege and franchise to construct,
replace, maintain, use and operate equipment and facilities for an underground fiber optic
telecommunications system within the following streets and property'
A. South Grady Way where the same is crossed by the Union Pacific right-of-way;
B So. 18Dth Street where the same is crossed by the Union Pacific right-of-way;
C. Strander Boulevard where the same is crossed by the Union Pacific right-of-way;
D Corner of Interurban Avenue South and Fun Center Way to the west side of the Union
Pacific right-of-way
Spnnt amendmt FI:bjs 9-05
1
Section 2. Severability. If any section, subsection, paragraph, sentence, clause or phrase
of this ordinance or its application to any person or situation should be held to be invalid or
unconstitutional for any reason by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of the remaining portions of
the ordinance or its application to any other person or situation.
Section 3. Effective Date. This ordinance or a summary thereof shall be published in the
official newspaper of the City, and shall take effect and be in full force and effect five (5) days
after passage and publication as provided by law
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this day of .2005
AITEST/ AUTHENTICATED'
Steven M. Mullet, Mayor
Jane E. Cantu, CMc, City Clerk
APPROVED AS TO FORM BY
Filed with the City Clerk:
Passed by the City Council.
Published.
Effective Date:
Ordinance Number-
Office of the City Attorney
Sprint alllendmt FI:bjs 9-05
2
Utilities Committee
September 7, 2005
Present:
Dave Fenton, Chair; Joan Hernandez, Jim Haggerton
Jim Morrow, Frank Iriarte, Bob Giberson, Mike Cusick, Ryan Larson, Gail
Labanara, Pat Brodin, Lucy Lauterbach
1. S rint Communications Franchise A reement The City already has a franchise
agreement with Sprint Communications, but the company would like an amendment to be able to
put in more equipment. They currently have three locations and are requesting to add another at
Interurban Ave S and Fun Center Way. Minimal impacts are expected since the lateral will be
constructed using directional bore. Recommend franchise amendment ordinance to COW
and Ree:ular Meetine:s.
2. 2005 Small Drainae:e Proe:ram The small drainage projects being done includes three sites
at 45th Ave. S., 43rd Ave. S & S.140th St/ 45th Ave. S., and 42nd Ave. S. Dennis R. Craig, Inc. had
the lowest bid at $377,481.65. As Craig did our 2004 Small Drainage projects, the finn is
familiar to staff and has good references. Recommend awardine: '05 Small Drainae:e bid
award to Dennis R. Craie: for $377.481.65 at COW and Ree:ular..
3. Construction Manae:ement of Small Drainae:e The City has a contract for design with
KPG, Inc and needs a supplement to add construction management for the 2005 Small Drainage
Project. This contract supplement is not to exceed $ 48,574.12. This will bring KPG's total
contract amount to $225,257.12. Authorize Mavor's si2nature on KPG Contract for
$48.574.12 to COW and Ree:ular Meetin2s.
4. AJlentownIFoster Point Sewer Proiect Jim M and the Committee discussed several
concepts for paying for the Allentown/Foster Point water and sewer project. Jim discussed the
fmancing cost for the Public Works Trust Fund (PWTF) loans that had an interest rate of2%. We
did not get the second PWTF loan, so we are looking @ fmancing the project with revenue
bonds. With the larger match from the City, the PWTF loan's interest rate would be reduced to
Y2%, yet the revenue bonds would have a 5% interest rate. Even with this change, debt service
had similar costs. To fully fund a proposed $9.m project, the City would need to borrow $3.35m.
If revenue bonds are used, the sewer fund 6-year projects would need to be carefully reviewed
and re-prioritized. The water fund will be used on the project for water line replacements needs.
Jim M said no further rate increases, other than those already planned, would be needed. The
goal of keeping the cash flow in the enterprise funds strong through 2005 is extremely important.
Pat said our sewer infrastructure citywide is fairly new, and he didn't anticipate any large needs
in the near tenn.
Dave did not support LIDs in the area or breaking the project up into smaller pieces, or reducing
the scope of the project. He supported the staff efforts to continue working this issue, and
thanked staff for their excellent work to date. Jim H said we could justify revenue bonds by how
important this project is to the citizens and the city.
Jim M said they are still working with concepts for funding the project, and will keep the
Council infonned as they calculate further costs savings and benefits. Information only.
(jjf
Minutes prepared by
L. Lauterbach