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Home My WebLink AboutCOW 2021-03-22 Item 4B - Agreements - Franchise Agreements 101COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayors review Council review 03/22/21 ESC ITEM INFORMATION ITEM No. 4.B. 13 STAFF SPONSOR: JOEL BUSH ORIGINAL AGENDA DATE: 03/ 22/ 21 AGENDA ITEM TITLE Franchise Agreements 101: Overview of franchise agreements, foundational information, and discussion for future agreements CATEGORY 11 Discussion 03/22/21 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire 11 TS ❑ P&R ❑ Police ❑ PW SPONSOR'S Franchise Agreements play a Targe role in how business is conducted in the City. Over the SUMMARY past several years, due to several factors, the process of managing those agreements has lost some direction and formality. The council had previously requested some time be dedicated for their instruction and input on how staff manage the agreements. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Corn ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Technology and Innovation Services Transportation and Infrastructure COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 03/22/21 MTG. DATE ATTACHMENTS 03/22/21 Informational Memorandum dated 03/16/21 Franchise Overview Power Point Presentation (Franchise Overview.pptx) 13 14 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Tukwila City Council FROM: Joel Bush, Technology and Innovation Services Director BY: Eric Compton, Franchise and Technology Specialist CC: Mayor Ekberg DATE: March 16, 2020 SUBJECT: Franchise Overview Workshop ISSUE Council has requested a workshop to provide a 360 degree understanding of the franchise process and discuss standardizing the process. BACKGROUND Historically, all franchises were managed by the Public Works department. Franchises were handled in an ad hoc manner with terms and scope varying significantly. Recently, the responsibility of managing franchises has been split between Public Works (for Utility) and Technology & Innovation Services (for Telecommunications). Franchise scope has generally been consistent in allowing access to all City rights-of-way, but terms has still varied from 5-10 years. DISCUSSION Franchise agreements provide the service provider a general right of access to the rights-of-way of the City. These agreements are controlled by RCW title 35. In addition to the franchise agreement, the City may require additional permits for work to be done. There are many types of franchises — Cable, Telecommunications, Power, Natural Gas, Water, Garbage, etc. Tukwila manages them in two groups — Utility (Power, Gas, Water, Garbage) and Telecom (Cable and Telecommunications). City Staff are working to update City Code, design standards, permits, and process workflows to accommodate the anticipated influx of Small Cell Wireless facilities being built to develop 5G wireless service in the region. FINANCIAL IMPACT This workshop has no financial impact, but the potential changes to permitting fees could generate additional revenue for the City. RECOMMENDATION This workshop is for informational purposes and seeks to gain input from the Council on franchise term length. There is no recommendation. ATTACHMENTS Franchise Overview PowerPoint presentation (Franchise Overview.pptx) {EFM2320685.DOCX;1/]3175.000001/ 15 16 City of Tukwila Franchising Overview OGDEN vUf�PHY WALLACE ATTORNEYS Daniel Kenny Franchising Authority - Franchise agreements provide the service provider a general right of access to the rights-of-way of the City. - Cities may require additional permits at the time of a specific installation. - RCW 35A.47.040 - Authority to Grant Franchise - RCW 35.21.860 - Restriction on Franchise Fees - RCW 35.99 - Telecommunication Use of the ROW OMW 2 Different types of franchises - Cable TV - Comcast, Wave - Telecommunications - Wireline - Fiber - Extenet, WanRack, Astound, Centurylink Small Wireless Facilities - Sprint, AT&T, T -Mobile - Power - PSE, SCL - Natural Gas - PSE - Water - Garbage - Etc. OMW C0 3 INVENTORY OF FRANCHISES • Tracking Franchises and information • Effective and Expiration Dates • Franchise Type Ordinance/Resolution number (w/link to Laserfiche) • Miscellaneous Notes S Franchise Type Ordinance/ e I Company , • Resolution Description 1 Effective I Expiraion Date Date •1 Notes A ,1 Telecommunications 264711 Cnet Systems. Ord.#2647 GRANTING ANDN-EXCLUSIVE FRANCHISE TO EXTENET SYSTEMS, INC. 12/15/2020 12/15/2030 Non -Telecom 2483 Puget Sound Energy Ord. #2483. granting non-exclusive franchise to Puget Sound Energy to construct. install, replace, maintain, repair. and operate electric light. power, and natural gas systems Telecommunications2583 New Cingular Ord 02583. granting a non-exclusive franchise to New Lingular Wireless for the purpose of Wireless "constructing, operating and maintaining a telecommunications system in certain public rights-of-way Telecommunications 2584 Mobilltie LLC Grd.#2584. granting a non-exclusive franchise to hlobilitiie LLC forth° purpose of constructing, operating and maintaining small cells in certain public rights-of-way !Telecommunications ITelecommunications Telecommunications Telecommunications Non -Telecom IlTelecommunications ®Telecommunications Telecommunications Telecommunications Non -Telecom Telecommunications Non -Telecom Seattle SMSA Drd.#2560, granting franchise to Seattle SMSA Limited Partnership dbaVerizon Wireless for 2568 Limited Partnership telecommunlcatlons system (ve eon) Sprint Ord. #2546, granting non-exduslvefranchise to Sprint Communications Company far 2546 Communications telecommunications systems In certain public rights-of-way Company MClmetrd Access 2536 Transmission Services 10827/2015 10/26/2030, 8114/2018 0/13/2028 811412018 8/1312028 Ord. #2536, granting non-exclusive franchise to MClmetro Access Transmission Services Corporation dba Venzon Access Transmission Services for telecommunications system, (Venzon Access Transmission SeMces) 2483 Level3 Drd.#2493, grantingnon-exdustvefranchise to Level 3 Communications for telecommunications Communications system 1751 Water District#20 OM. #1751, granting franchise to Water District 920 2445 Astound Broadband Grd.#2445, granting non-exclusive franchise agreement to Astound Broadband for telecommunications tem 3727/20181 312612028 912612017 9/25/2027 5/9/2017 5/8/2027 2/9/2016 2/8/2021 9118/1995 9/1772020 8/12/2014 8111/2020 1 yr extension granted, 8111/2019 2474 Zayo Group Drd. #2474, granting a nen-exclusive franchise to Zayo Croup for telecommunicatons system 5/12/2015 5/11/2020 hlcLeodUSA mrnu Grd. #2460, granting a non exdusive to MsLeodUSATelecammun 2460 Telecommunication telecommunications system s Services tions Services for 12/912014 2431 twtelecom of Grd.#2431, granting franchise to to telecom of washinglen fortelepommunications system washington 534 lJPRR (Lessee) Street/5ouer505ler Parkway 12/812019 3/1/2014 21282019 Ord.#534, granting franchise to railroad companies for railroad crossings of South 18031 12211968 12/1/2018 2415 Electric Lightwave 050.92415, granting non-exdustve franchise to Electric Lightwave fortelecommunicaoens system (Zayo) 10129/2013 10/2820 2012 Seattle City Light 05142012, granting franchise to Seattle City Light for distribution of electricity Telecommunications 3/1/2003 22282018 2102 Spnnt Drd#2102, amending Franchise Agreement with Sprint Communications for telecommunications Communications services Telecommunications 928/2005 7/20/2017 Repealed by 2546 (JS Sprint Ord 0/1439. granting US Sprint Communications the/ghtto operating long dstance communications 7820/1987 7/20/2017 Ammended by 2102. Repealed 652546 DocumentLink heL l/rec ds- kv:,iaw a.e oe'61ebLnkl PDFlkvr pfs55oexwxan5lmebsal4t14JOrd%202647%29- %233Tel ecommunications%2136ystem%20Franchi 5e%29sith%20Erenet9520Systems.pdi huolirecords_tukwi I awayovfWeb[inke/1/dor/ 257946 Electronic as•x htto t/records tukwilawa.eav/WebLinklDocVie .-d=307010 htta:f/records tukwilawa.¢ovl0ebLinkllfdoc/3 07009/oakeLasox h pflerords tukwilawa govfWebLink/DoeVie y00500310004285 haojfrecords tukwilawaaov/WebLinkflidoc/2 92140/P1201.0000 http:firecords tukwil awa:eovlWeblink8/1/docj 207261/111e/.1005 httwurecords_ m k ilawsaovfWebLink/Electro n F le.eson?clo d=270108&dbid=l htto:f /records .tukwilawa.2ov/weblmkefDocvl e htto:f /reco rds.tu kw i l aw a.2 oviweb Li n ko/ 1/ d od 215595/Electronicc aspx http:f lrecords.tu kw i l awa.Eoo/WebLi nk8/1/dod 257988/EI ectran i casrrx htto:f/records. tukwilawaaovf WebLink8/1/clod 250951JElechonic aspx httpJ/records tukwilawa&ov/WebLinkeil/clod 173207/PaaeLasox http//records tukwilawaaov/weblinkSJDocVi e w.asp0id=11-08 ht[p-/records tukwilawaaovJWebtink/DoeVie w.asox?id=112732 hap-Jr/recordss tukwilawaaovf Webtink8/1/doe/ 19045/Paeel.asoy http:f/records tukwilawa £oo/Webtink8f1/dorf 76671Paael.asox nem:f/records. tukwilawaaoWweblink8(DosVi e V 1 r Y Y 4 Franchise Asset Visibility Tool 'VW 0 -6850+,6502 01-685016507 01-685016508 TRO.522':, NS Zoom to TIS is building out GIS Layers and Permitting tool to ensure visibility and traceability of assets in Tukwila's ROW OMW 4.0 11004:111.1111111. 1.01 11/811.1Z/Felsrav _ - .TR 05665 - —On TR054111111fr22101/e8 • 516VLORIAPIA•ma eximausasomunoli ;toe ! ran.. Off. L1.00111 CAL 0 MY{ 101.111.1111110101 1-10.11.114-01144 10 PC -7.131.-.1C WORKS IRECORD OFIAMIOS 2015 SMALL DRAINAGE PROGRAM Lowsp.s. 5 Cable Franchises Costs and Fees City can collect a Franchise Fee up to a maximum of 5% of gross cable revenues. FCC now requires non -monetary "in-kind" contributions to count against the Franchise Fee. General Fund dollars. - City can also collect a Public, Educational, Government access (PEG) Fee that goes towards PEG capital costs only. - The City is not entitled to recover administrative costs for the franchise negotiation. OMW Telecom franchises - City can collect administrative costs for negotiating the Franchise. - City cannot collect a Franchise Fee or a PEG Fee. OMW Common Franchise Topics Term - Typically, between 5 and 25 years depending on franchise type - Scope of Authority - Non-exclusive right of access to all rights-of-way of the City - Insurance and Indemnification - WCIA guidelines are the normal starting place Undergrounding - Relocation - Tree Trimming - Coordination of work - Costs - Breach, Cure, and Termination - Etc. OMW 8 Small Wireless Facilities Now let's dive into the new type of franchise you'll see a lot.... Macro Wireless Fria I I lty OMW Small Cell W ret sa Facility 9 Anatomy of a Small Cell Antenna Fiber & Coax Conduit Power Conduit New Fiber Service verizoni ssc+n Inter 1 21:11.tfT•7P 1 Page Radios and Fiber Termination Box in a concealed shroud Power Disconnect aid pfoprietatymatemaksfw milreized Verizon _ ^ De 5y. only. Use, cliscrccure cx ._i CI orate iS• notperrritied lc,ably smaillhper-zoos e•.. -__excepthy ageemei1 Small Cells on Wooden Utility Poles PROPOSED Small Cells on Light Poles T -MOBILE ANTENhAS (BA.C1( TO E.I. ON POLE.) OMW 1 2 This is all about 5G right? • No - small cells work for both 4G and 5G • Current build -out & designs are for 4G • 5G operates at a different frequency and will use the millimeter wave portion of the spectrum. • May need to modify design criteria in the future due to changes in technology. • Will need additional antennas. OMW 13 1111111117111EM 5G & RF Emissions • 47 USC 332(c)(7)(iv) -federal prohibition on local regulation of RF emissions Where 5G fits in the electromagnetic spectrum Non -ionising radiation Ionising radiation 5G Radio Mobile phones Low frequency Micro- waves illcro- wav s visible light J � L Ultra- -Rays Gamma violet Rays High frequency Source: SCAMP/Imperial College Lor,ion EBU OMW B B 14 Key Principles for Small Wireless Facilities - The City does not have authority to dictate technology. - Regulations that effectively prohibit the rollout of the technology should not be considered. - Presumptively reasonable shot clocks 60 days for an installation on an existing structure 90 days for new poles. These shot clocks cover all necessary city approvals. - The City should treat all similarly situated applicants the same. This is called competitive equity. Regulations and approvals should not vary depending on who comes in the door. OMW 15 Small Wireless Regulation • Franchise Agreement - general authorization to access the rights-of-way. • Small Wireless Permit - the specific authorization to install certain facilities in a specific location. Compliance with Design and Aesthetic Regulations • Master Lease Agreement - the authorization to install facilities on all poles of the owner. City approved a template MLA over a year ago. Other entities (PSE) might have their own MLA. ® Site License Addendum - the follow-on site agreement or specific poles of the owner. OMW 16 Small Cell Franchising Next Steps • Municipal Code Update - ensures Small Cell deployments meet City standards all poles (City owned and other). • Permitting Fee Update - allows the City to be reimbursed for work related to small cell deployments. • Process Improvements - streamlining acceptance, review, and inspection for Small Cell deployments to meet FCC shot -clocks and improve staff efficiency • Development of Design Standards - creates simple, unified design for all carriers; incorporates latest pole designs. • Continued Build Out of GIS Tool - links all forms of ROW information into one easy resource OMW 17 Questions Daniel Kenny dpkenny@omwlaw.com OGDEN MURPHY WALLACE OMWLAW.COM