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Home My WebLink AboutCOW 2020-08-10 Item 3E - Ordinance - 1-Year Franchise Agreement with Astound Broadband (Extension)COUNCIL AGENDA SYNOPSIS ---------------------------------- Initials Meeting Date Prepared b Mayors review Council review 08/10/20 AY 08/17/20 AY ITEM INFORMATION ITEM NO. 3.E. STAFF SPONSOR: JOEL BUSH ORIGINAL AGENDA DATE: 08/10/20 AGENDA ITEM TITLE Ordinance extending Franchise Agreement with Astound Broadband, LLC CATEGORY ® Discussion Altg Date 08/10/20 ❑ Motion g Date Alt ❑ Resolution Mtg Date ® Ordinance Aft g Date 08/17/20 ❑ Bid Award Aft g Date ❑ Public Hearing Alt g Date ❑Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ 1 S ❑ P&'R ❑ Police ❑ PlF SPONSOR'S Approve an ordinance amending Ordinance No. 2445 extending the franchise term with SUMMARY Astound Broadband, LLC to August 11, 2021 and allow for additional extensions in one- year increments. REVIEWED BY ❑Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Com ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 08/03/20 COMMITTEE CHAIR: DELOSTRINOSJOHNSON RECOMMENDATIONS: SPONSOR/ADMIN. Technology & Innovation Services COMMITTEE Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 08/10/20 08/17/20 MTG. DATE ATTACHMENTS 08/10/20 Informational Memorandum dated 07/31/20 Draft Ordinance Letter of Request for Extension Map (Requested by the Transportation & Infrastructure Committee) Minutes from the 8/3 T&I Committee Meeting 08/17/20 e 100 ■ City of Tukwila Al la n Ek berg, M ayor Public Works 0epar€ment - Hari Ponnekand, Intedrn Director ,t INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure Committee FROM: Joseph Todd, CIO & Director Tukwila Technology & Innovation Services BY: Eric Compton, Franchise & Technology Specialist CC: Mayor Ekberg DATE: July 31, 2020 SUBJECT: Astound Broadband, LLC Franchise Agreement Ordinance No. 2445 Amendment and Extension of Franchise ISSUE Approve an ordinance amending Ordinance No. 2445 extending the franchise term with Astound Broadband, LLC, to August 11, 2021, and amending ordinance to allow for additional extensions in one-year increments at the City's discretion. BACKGROUND State law provides cities the authority to establish franchises to telecommunication providers who wish to occupy city owned rights -of -way. Tukwila Municipal Code 11.32.060 requires all telecommunication providers to obtain franchise agreements with the City prior to approval to construct, maintain and operate within the City limits. On August 4, 2014, the City Council passed Ordinance No. 2445, granting a five-year franchise to Astound Broadband, LLC (d.b.a. "Wave"). The current franchise agreement term ends on August 11, 2020 and allows for a single one-year extension. DISCUSSION A request to extend the franchise agreement by five years was submitted by Wave on January 6, 2020. Section 3 of Ordinance No. 2445 allows the City to extend the franchise by up to one year beyond the term of the expiration date. Staff recommends amending the ordinance to allow for additional extensions in one-year increments and granting another one-year extension to allow time for a new franchise agreement to be developed and agreed upon by both parties. FINANCIAL IMPACT There is no direct financial impact to the one-year extension but developing a new franchise agreement will require staff time to complete. RECOMMENDATION Council is being asked to approve the Ordinance that amends Ordinance 2445 and extends the Astound Franchise Agreement for one year and to consider this item at the August 3, 2020 Transportation and Infrastructure Committee meeting and subsequent on the Consent Agenda on the August 17, 2020 Regular Meeting. ATTACHMENTS • Draft Ordinance • Letter of Request for Extension 101 102 191VAS 09 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2445, THE ASTOUND BROADBAND, LLC, FRANCHISE AGREEMENT, TO AMEND THE FRANCHISE TERM LANGUAGE AND PROVIDE FOR A ONE-YEAR EXTENSION OF THE FRANCHISE TERM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council passed Ordinance No. 2445 on August 4, 2014, granting a five-year franchise to Astound Broadband, LLC, for the purposes of constructing and maintaining a telecommunications system in certain public rights -of -way in the City; and WHEREAS, Ordinance No. 2607, passed on June 17, 2019, authorized an extension of the franchise granted to Astound Broadband, LLC, for a one-year period, pursuant to Section 3 of Ordinance No. 2445; and WHEREAS, the franchise agreement has a current expiration of August 11, 2020; and WHEREAS, Astound Broadband, LLC, and the City desire an additional extension of the franchise to facilitate continued negotiation of a new franchise agreement; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Ordinance No. 2445, §3, is amended to read as follows: Franchise Term. The franchise rights granted herein shall remain in full force and effect for a period of five years from the effective date of this ordinance. However, this Franchise Agreement shall not take effect and Astound shall have no rights under this Franchise Agreement unless a written acceptance with the City is received pursuant to Section 4 of this agreement. If Astound requests a Franchise renewal prior to the expiration date, the City may, at the City's sole discretion, extend the term of this Franchise Agreement fer up to one year in one-year incremeniz. beyond the expiration W: Legislative DevelopmentW,stound Broadband amendment and extension 7-23-20 EC:bjs Review and analysis by Barbara Saxton Page 1 of 4 103 date to allow processing of the renewal. If the City elects to extend the term of this Franchise Agreement, written notice of the extension shall be provided to Astound prior to the Franchise expiration date. Section 2. Franchise Term Extended. A one-year extension of the franchise for Astound Broadband, LLC, is hereby granted to allow for processing of a renewal franchise, thereby extending the current franchise term through August 11, 2021. Section 3. Acceptance of Terms and Conditions. The full acceptance of this amendment and extension to the Franchise Agreement and all the terms and conditions shall be filed with the City Clerk within 10 days of the effective date of this ordinance in the form attached hereto as Exhibit A. Failure on the part of Astound to file said consent within 10 days of the effective date of this ordinance shall void and nullify any and all rights granted under this Franchise Agreement. Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 5. 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 of constitutionality of the remaining portion of this ordinance or its application to any other person or situation. Section 6. 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 five 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 ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Allan Ekberg, Mayor . 2020. Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Legislative Development\Astound Broadband amendment and extension 7-23-20 EC:bjs Review and analysis by Barbara Saxton 104 Page 2 of 4 Office of the City Attorney Attachment: Exhibit A — Franchise Agreement Amendment and Extension Acceptance Form W: Legislative Development\Astound Broadband amendment and extension 7-23-20 EC:bjs Review and analysis by Barbara Saxton Page 3 of 4 105 EXHIBIT A Astound Broadband, LLC, Amendment and Extension Acceptance Form Date: City of Tukwila City Clerk's Office 6200 Southcenter Boulevard Tukwila WA 98188 Re: Ordinance No. , adopted on Dear City Clerk: In accordance with and as required by Section 3 of City of Tukwila Ordinance No. passed by the City Council and approved by the Mayor on (the "Ordinance"), Astound Broadband, LLC, hereby accepts the terms, conditions and obligations to be complied with or performed by it under the Ordinance. Sincerely, ASTOUND BROADBAND, LLC Signature Name: Title: Date: cc: TIS Director, City of Tukwila, 6200 Southcenter Blvd, Tukwila, WA 98188 W: Legislative DevelopmentW,stound Broadband amendment and extension 7-23-20 EC:bjs Review and analysis by Barbara Saxton Page 4 of 4 106 From: Joe Kahl <loe.kahl@rcn.net> Sent: Monday, January 6, 2020 1:52 PM To: Cyndy Knighton <Cyndy.Knighton @TukwilaWA.gov> Subject: Re: Astound Broadband City of Tukwila, WA Telecom Franchise Renewal Hi Cyndy, Happy New Year. As you know, the Telecom Franchise Agreement between the City of Tukwila and Astound Broadband, LLC was extended effective June 25th, 2019 to August 11th, 2020. We would like to extend the agreement an additional 5 years to August 11th, 2025. Is there anything needed from Astound Broadband at this point to begin the process for approval? Please let me know. Thanks, Joe Joseph Kahl Vice President, Regulatory and Public Affairs 650 College Road East, Suite 3100 Princeton, NJ, 08540 (609) 681-2184 (Direct Dial) (609) 306-0901 (Cell) joseph.kahlkrcn.net (E-mail) W_ * f�u� wave 107 s ASTOUND FIBER 1. EXISTING 2. AERIAL 3.UNDERGROUND s 112M s1 m S 4nn SI 168e'sl S14 n I 150n51 s 1515151 � s 152ntl 51 S 5i d p & y V i95 I � A .� SYana�S� Y S rrxk p r. 168r1 Sl >rtiY slvacrrnora a N z a WS �� Rrikler Bl AVnYIy v0 a �.. ..t upwd or i knra�e J l C.M. or Waal or F � sl it s,gal, ae.k o a. a N W E S Not to Scale Vicinity Map Disclaimer: The location of f—t— and boundaries are appmximate and are intended for reference only, Data is based on best information available. City of 1 City Council Transportation & Infrastructure Committee Meeting Minutes August 3, 2020 - 5:30 p.m. - Electronic Meeting due to COVID-19 Emergency Councilmembers Present: Cynthia Delostrinos Johnson, Chair; Verna Seal, Kate Kruller Staff Present: David Cline, Hari Ponnekanti, Han Kirkland, Gail Labanara, Joseph Todd, Joel Bush, Adam Cox, Ryan Larson, and Scott Bates Chair Delostrinos Johnson called the meeting to order at 5:32 p.m. I. BUSINESS AGENDA A. Ordinance: Astound Franchise 1-Year Extension Staff is seeking Council approval of an ordinance that will extend the franchise term with Astound Broadband, LLC to August 11, 2021 and allow for additional one-year extensions. Item(s) needing follow-up Provide an updated memo showing a map of the Astound coverage area, if the City can get a better deal on 1-net and continue negotiations to assist the City with coverage in underserved areas. Committee Recommendation Unanimous approval. Forward to August 10, 2020 Committee of Whole. B. Ordinance: Interim Flood Plain Management Staff is seeking Council approval of an ordinance to adopt interim Flood Plain Management regulations in compliance with FEMA requirements. Committee Recommendation Unanimous approval. Forward to August 10, 2020 Committee of the Whole. C. 42"d Avenue South Bridge Closure Committee members and staff discussed the recent three-day closure of the 42nd Avenue South Bridge, including lessons learned and improvements for future road/bridge closures. Committee Recommendation Discussion only. 109