HomeMy WebLinkAboutCOW 2025-07-14 COMPLETE AGENDA PACKET Tukwila City Council Agenda
COMMITTEE OF THE WHOLE
Thomas McLeod, Mayor Councilmembers: Mohamed Abdi Armen Papyan
Marty Wine, City Administrator Jovita McConnell Dennis Martinez
Tosh Sharp, Council President Hannah Hedrick Verna Seal
ON-SITE PRESENCE:
TUKWILA CITY HALL
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Monday, July 14, 2025; 7:00 PM
1. CALL TO ORDER / PLEDGE OF ALLEGIANCE
2. LAND
ACKNOWLEDGEMENT
The City of Tukwila is located on the ancestral lands of the Coast Salish people.
We acknowledge their continuing connections to land, waters and culture.
We pay our respects to their elders past, present and emerging.
3. PUBLIC COMMENTS
including comment on
items both on and not on
the meeting agenda
Those wishing to provide public comments may verbally address the City Council
both on-site at Tukwila City Hall or via phone or Microsoft Teams for up to 5
minutes for items both on and not on the meeting agenda.
To provide comment via phone or Microsoft Teams, please email
citycouncil@tukwilawa.gov with your name and topic by 5:00 PM on the meeting date.
Please clearly indicate that your message is for public comment during the meeting,
and you will receive further instructions.
4. PRESENTATIONS a. Distinguished Service Medal to Officer Jason Wollan
Eric Drever, Police Chief
b. Promotional Swearing in of Commander Zack Anderson
Eric Drever, Police Chief
5. SPECIAL ISSUES a. Public Safety Discussion: Local Police and Federal Immigration
Enforcement
b. Resolutions Adopting City Investment Policy and City Debt
Policy
c. Ordinance Adopting Franchise Agreement with Hyper Fiber
d. Discussion on City Compensation Policy
Pg.1
Pg.3
Pg.39
Pg.87
6. REPORTS a. Mayor
b. City Council
c. Staff
7. MISCELLANEOUS
8. ADJOURN TO SPECIAL MEETING
(Continued…)
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please contact us at 206-433-1800 by 12:00 p.m. on the meeting date.
COMMITTEE OF THE WHOLE MEETING
July 14, 2025
Page 2
SPECIAL MEETING
1.CALL TO ORDER/ROLL CALL
2.CONSENT AGENDA a.Approval of Minutes: 6/23/25 (Special Mtg.)
b.Approval of Vouchers
3.NEW BUSINESS For discussion of Consent Agenda items only, if necessary.
4.ADJOURNMENT
WELCOME TO THE TUKWILA CITY COUNCIL MEETING
The Tukwila City Council encourages community participation in the local government process and
welcomes attendance and public comment at its meetings.
MEETING SCHEDULE
Regular Meetings are held at 7:00 p.m. on the 1st and 3rd Mondays of each month. The City Council takes
formal action in the form of motions, resolutions and ordinances at Regular Meetings.
Committee of the Whole Meetings are held at 7:00 p.m. on the 2nd and 4th Mondays of each month. The
City Council considers current issues, discusses policy matters in detail, and coordinates the work of
the Council at Committee of the Whole meetings.
PUBLIC COMMENTS
Members of the public are given the opportunity to address the Council for up to 5 minutes on items both on
and not on the meeting agenda during Public Comments. The City Council will also accept comments on an
agenda item when the item is presented in the agenda, but speakers are limited to commenting once per
item each meeting.
When recognized by the Presiding Officer, please go to the podium if on-site or turn on your microphone if
attending virtually and state your name clearly for the record. The City Council appreciates hearing from you
but may not respond or answer questions during the meeting. Members of the City Council or City staff may
follow up with you following the meeting.
PUBLIC HEARINGS
Public Hearings are required by law before the Council can take action on matters affecting the public
interest such as land-use laws, annexations, rezone requests, public safety issues, etc. The City Council
Rules of Procedure provide the following guidelines for Public Hearings:
1. City staff will provide a report summarizing and providing context to the issue at hand.
2. City staff shall speak first and be allowed 15 minutes to make a presentation.
3. The applicant is then allowed 15 minutes to make a presentation.
4. Each side is then allowed 5 minutes for rebuttal.
5. After City staff and the applicant have used their speaking time, the Council may ask further
clarifying questions of the speakers.
6. Members of the public who wish to address the Council on the hearing topic may speak for 5
minutes each.
7. Speakers are asked to sign in on forms provided by the City Clerk.
8. The Council may ask clarifying questions of speakers and the speakers may respond.
9. Speakers should address their comments to the City Council.
10. If a large number of people wish to speak to the issue, the Council may limit the total amount of
comment time dedicated to the Public Hearing.
11. Once the Presiding Officer closes the public hearing, no further comments will be accepted, and the
issue is open for Councilmember discussion.
12. Any hearing being held or ordered to be held by the City Council may be continued in the manner as
set forth by RCW 42.30.100.
For more information about the City Council, including its complete Rules of
Procedure, please visit: https://www.tukwilawa.gov/departments/city-council/
ITEM INFORMATION
STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 7/14/25
AGENDA ITEM TITLE Public Safety Discussion: Local Police and Federal Immigration Enforcement
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 7/14/25 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY This is an opportunity for Chief Drever to address the City Council and answer questions
regarding local law enforcement policies/practices with regard to federal immigration
enforcement.
REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source: GENERAL FUND
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
7/14/25
MTG. DATE ATTACHMENTS
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
7/14/25 LH 5.A.
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ITEM INFORMATION
STAFF SPONSOR: TONY CULLERTON ORIGINAL AGENDA DATE: 6/23/25
AGENDA ITEM TITLE Resolutions to Update the Debt Policy and Investment Policy
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 7/14 Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY Finance is recommending the repeal and replacement of the City’s current Investment and
Debt Policies. The updated policies reflect best practices by better aligning with industry
standards, expanding on roles and responsibilities, and supporting the City’s broader
financial strategy, including capital planning and passive revenue development.
REVIEWED BY Community Svcs/Safety Finance & Governance Planning & Community Dev.
Arts Comm. Parks Comm. Planning Comm.
Trans&Infrastructure Svcs
LTAC
DATE: 6/23/25 COMMITTEE CHAIR: ARMEN PAPYAN
RECOMMENDATIONS:
SPONSOR/ADMIN. Finance Department/Tony Cullerton
COMMITTEE Unanimous Approval; Forward to the 7/14/25 Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
7/14/25
MTG. DATE ATTACHMENTS
7/14/25 Staff Informational Memo Dated 6/23/25
Draft Resolution for Debt Policy
Draft Resolution for Investment Policy
7/21/25
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
7/14/25 TC
Minutes from 6/23/25 Finance and Governance Committee Meeting
7/21/25
Mtg Date 7/21 Mtg Date 7/21
5.B.
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City of Tukwila Tom McLeod, Mayor
Finance Department – Aaron BeMiller, Director
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
CC: Mayor McLeod
FROM: Aaron BeMiller, Finance Director
By: Tony Cullerton, Deputy Finance Director
DATE: June 23, 2025
SUBJECT: City Investment & Debt Policies
ISSUE
Finance is recommending the repeal and replacement of the City’s current Investment and Debt
Policies. The updated policies reflect best practices by better aligning with industry standards,
expanding on roles and responsibilities, and supporting the City’s broader financial strategy ,
including capital planning and passive revenue development.
BACKGROUND
As part of the Council’s Revenue Proviso, the Finance Department is conducting a
comprehensive review of the City’s financial policies to strengthen fiscal sustainability and
strategic planning. The current Investment and Debt Policies were last significantly updated in
2021 and 2023, respectively. Since then, best practices and the City’s financial priorities have
evolved.
The revised policies were prepared to align with the standards set by the Washington Public
Treasurers Association (WPTA) and have been submitted for consideration under their Certificate
of Excellence program. The revisions aim to support:
•A more integrated approach to the Capital Improvement Program (CIP)
•Transparent delineation of roles, responsibilities, and reporting
•The use of professional advisory services for complex transactions
•Enhanced diversification, risk management, and performance benchmarking
Investment Policy Updates:
The new Investment Policy offers a substantial update in both structure and content. Key
improvements include:
•Enhanced definitions of safety, liquidity, and return objectives, with detailed risk mitigation
strategies
•Expanded list of permitted investments, including supranational bonds and investment -
grade corporate notes
•Clearer delineation of delegated authority, reporting responsibilities, and training
requirements
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•Prohibition of higher-risk instruments, such as mortgage-backed securities and
cryptocurrency
•Emphasis on benchmarking, including use of Treasury indices and quarterly compliance
reporting
Debt Policy Updates:
Similarly, the revised Debt Policy strengthens the City’s framework for responsibly managing
long-term obligations:
•Aligns debt issuance with long-range financial and capital planning
•Clarifies use of professional advisors and underwriters
•Establishes standards for debt affordability, structuring, and refunding
•Enhances transparency and ongoing debt performance reporting
FINANCIAL IMPACT
There is no direct financial impact from the adoption of these revised policies. However, the
improved framework is expected to contribute to long -term cost savings, better investment
performance, and stronger credit management.
RECOMMENDATION
Forward the resolutions to the 07/14 Committee of the Whole Meeting for discussion and
subsequently to the 07/21 Regular Meeting consent agenda in order to repeal and replace both
the Investment and Debt Policies for the City.
ATTACHMENTS
A.Draft Resolution Adopting Investment Policy (2025)
B.Draft Resolution Adopting Debt Policy (2025)
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Legislation: Investment Policy Page 1 of 2
Version: 6/16/2025
Staff: T. Cullerton
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING AN INVESTMENT
POLICY; AND REPEALING RESOLUTION NO. 2034
WHEREAS, the investment of public funds must comply with all applicable state and
local requirements; and
WHEREAS, a comprehensive investment policy ensures that public funds are
invested in a manner that will provide maximum security with the highest investment
return while meeting daily cash flow demands; and
WHEREAS, on December 6, 2021, the City Council adopted Resolution No. 2034
adopting an investment policy; and
WHEREAS, the City Council desires to strengthen and align the policy with prudent
and contemporary financial investment practices; and
WHEREAS, the City Council desires to implement an Environmental, Social, and
Governance (ESG) investment strategy utilizing ethical investing as a guiding principle;
and
WHEREAS, the City Council desires to incorporate climate change as a factor in
investment risk and strategy, aligning with broader sustainability goals.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Repealer. Resolution No. 2034 is hereby repealed.
Section 2. Findings Incorporated and Adoption. The above “whereas” recitals are
adopted as findings in support of this resolution, and the City of Tukwila Investment Policy
attached hereto as Exhibit A is adopted.
Attachment A
DRAFT
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Legislation: Investment Policy Page 2 of 2
Version: 6/16/2025
Staff: T. Cullerton
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this _______ day of _________________, 2025.
ATTEST/AUTHENTICATED:
Andy Youn-Barnett, CMC, City Clerk Tosh Sharp, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Office of the City Attorney
Attachment: Exhibit A – City of Tukwila Investment Policy - 2025
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City of Tukwila
Investment Policy
2025
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City of Tukwila Investment Policy 2025 Page 2 of 18
Table of Contents
1. Introduction .......................................................................................................................... 3
2. Governing Authority ............................................................................................................. 3
3. Policy Statement .................................................................................................................. 3
4. Scope .................................................................................................................................... 3
5. Objectives ............................................................................................................................ 3
A. Safety ............................................................................................................................. 4
B. Liquidity .......................................................................................................................... 4
C. Return on Investment ..................................................................................................... 5
6. Standards of Care ................................................................................................................ 5
A. Delegation of Authority and Responsibilities ................................................................... 5
B. Prudence ........................................................................................................................ 6
C. Ethics and Conflicts of Interest ....................................................................................... 6
7. Safekeeping, Custody and Controls ..................................................................................... 6
A. Delivery vs. Payment ...................................................................................................... 6
B. Third-Party Safekeeping ................................................................................................. 7
8. Authorized Financial Dealers ............................................................................................... 8
A. Broker/Dealers ............................................................................................................... 8
B. Investment Advisors ....................................................................................................... 8
C. Depositories ................................................................................................................... 9
D. Competitive Transactions ............................................................................................... 9
9. Authorized and Suitable Investments ................................................................................... 9
A. Authorized Investments .................................................................................................. 9
B. Suitable Investments .....................................................................................................10
C. Bank Collateralization ....................................................................................................11
D. Prohibited Investments ..................................................................................................11
10. Investment Parameters .....................................................................................................12
A. Diversification ................................................................................................................12
B. Investment Maturity .......................................................................................................12
C. Strategic Philosophy ......................................................................................................13
11. Reporting Requirements ...................................................................................................14
12. Policy Adoption .................................................................................................................15
Glossary of Terms .....................................................................................................................16
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City of Tukwila Investment Policy 2025 Page 3 of 18
1. Introduction
This Investment Policy defines the parameters within which funds are to be invested by the City
of Tukwila (“City”). This policy also formalizes the framework of the City’s Policy and Procedures
to provide the authority and constraints for the City to maintain an effective and judicious
management of funds within the scope of this policy.
These policies are intended to be broad enough to allow the Finance Director or authorized
designee to function properly within the parameters of responsibility and authority, yet specific
enough to adequately safeguard the investment assets.
2. Governing Authority
The City of Tukwila’s investment authority is derived from RCW 35A.40.050 and 35.39.032. The
investment program shall be operated in conformance with Washington Revised Statutes and
applicable Federal Law. All funds within the scope of this policy are subject to regulations
established by the State of Washington.
3. Policy Statement
This policy establishes standards and guidelines for the direction, management and oversight for
all of the City of Tukwila’s investable cash and funds. Funds must be invested prudently to assure
preservation of principal, provide needed liquidity for daily cash requirements, and provide a
market rate of return. All investments must conform to federal, state, and local statutes governing
the investment of public funds.
4. Scope
This policy applies to activities of the City of Tukwila with regard to investing the financial assets
of the City. The City commingles its funds to maximize investment earnings and to increase
efficiencies with regard to investment pricing, safekeeping, and administration. Investment
income will be allocated to the various funds based on their respective participation and in
accordance with generally accepted accounting principles (GAAP). Principal and interest is
apportioned for the benefit of the various participating funds or for the benefit of the general fund.
(RCW 35.39.034) The city maintains the right to separate certain funds and exclude them from
the scope of this policy. Should bond covenants be more restrictive than this policy, funds shall
be invested in full compliance with those restrictions.
5. Objectives
All funds will be invested in a manner that is in conformance with federal, state and other legal
requirements. In addition, the objectives, in order of priority, of the investment activities will be as
follows:
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City of Tukwila Investment Policy 2025 Page 4 of 18
A. Safety
Safety of principal is the primary objective of the City. To mitigate credit and interest rate
risk, investment decisions shall be undertaken in a manner that seeks to ensure
preservation of capital in the overall portfolio. To obtain this objective, the following steps
will be taken:
i. Credit risk. This is the risk of loss due to the financial failure of the security issuer or
backer. The city will minimize credit risk by:
1. Limiting exposure to poor credits and concentrating the investments in the
safest types of securities.
2. Diversifying the investment portfolio so that potential losses on individual
securities will be minimized; and
3. Actively monitoring the investment portfolio holdings for rating changes,
changing economic market conditions, etc.
4. Credit rating downgrade. If the credit rating of a security is subsequently
downgraded below the minimum rating level for a new investment of that
security, the Finance Director shall evaluate the downgrade on a case-by-case
basis in order to determine if the security should be held or sold after further
analysis of the credit rating on an ongoing basis. The Finance Director will
apply the general objectives of safety, liquidity, and return to make the decision.
ii. Interest rate risk. This is the risk that the market value of securities in the portfolio will
fall due to increases in general interest rates. The city will mitigate the interest rate risk
by:
1. Structuring the investment portfolio so that securities mature to meet cash
requirements, when known, for ongoing operations, thereby avoiding the need
to sell securities on the open market prior to maturity;
2. Investing liquidity funds primarily in short-term instruments (i.e., investments
maturing in less than one year); and
3. Investing excess liquidity funds in a manner that is consistent with the
established risk/return objectives of this policy within the stated maximum
weighted average maturity constraint.
B. Liquidity
The investment portfolio will be structured to meet all expected obligations in a timely
manner, to avoid premature sale of an investment at a loss of principal. The investment
portfolio will provide liquidity sufficient to enable the City to meet all cash requirements
that might reasonably be anticipated. This will be accomplished by either maintaining a
portion of the portfolio in investment vehicles offering daily liquidity at face value, such as
the Washington State Local Government Investment Pool (LGIP) or structuring the
portfolio so that securities mature concurrently with cash needs to meet anticipated
demands. Because all possible cash demands cannot be anticipated, the portfolio should
consist largely of securities with active secondary or resale markets.
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City of Tukwila Investment Policy 2025 Page 5 of 18
C. Return on Investment
The investment portfolio will be structured with the objective of attaining a market rate of
return throughout economic cycles, commensurate with the investment risk parameters
and the cash flow characteristics of the portfolio.
D. Legality
The investment portfolio will be invested in a manner that meets RCW statutes and all
legal requirements of the City.
6. Standards of Care
A. Delegation of Authority and Responsibilities
i. Governing Body
The City Council, as the governing body of the City, will retain ultimate fiduciary
responsibility for the portfolio. The Council will designate an investment officer to
manage the investment program in accordance with RCW sections 35A.40.050,
35.39.032, 36.29.020 and City policy and will review and adopt any changes to the
investment policy.
ii. Delegation of Authority
The City Council designates the City’s Finance Director, or their designee, as the
Investment Officer of the City. No person may initiate investment transactions on
behalf of the Investment Officer without the express written consent of the Investment
Officer. Both the City and the investment advisor shall maintain record of individuals
granted consent to initiate transactions by the Investment Officer.
iii. Training: Such procedures shall include explicit delegation of authority to persons
responsible for investment transactions to provide adequate redundancy by properly
trained and informed staff. All staff engaging in investment transactions shall attend
public investment training. Staff shall not engage in any allowable investment
transaction for which they cannot articulate a rationale for having done so.
iv. Finance Committee:
The Finance & Governance Committee shall meet at least annually to receive a report
on investment performance and investment compliance.
v. Registered Investment Advisor
The City may engage the services of an external registered investment adviser to
assist with the management of the City’s investment portfolio in a manner that is
consistent with the City’s objectives and this policy. Such advisers shall provide
recommendation and advice regarding the City investment program including but not
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City of Tukwila Investment Policy 2025 Page 6 of 18
limited to advice related to the purchase and sale of investments in accordance with
this Investment Policy. Such advisers must be registered under the Investment
Advisers Act of 1940.
B. Prudence
The standard of prudence to be used by the Finance Director or any designees in the
context of managing the overall portfolio is the prudent person rule enacted by State
Statute (RCW 11.100.020) which states:
Investments will be made with judgment and care, under circumstances then
prevailing, which persons of prudence, discretion and intelligence exercise in the
management of their own affairs not in regard to speculation but in regard to the
permanent disposition of the funds considering the probable income as well as the
probable safety of the capital.
The Finance Director and authorized investment officers and employees who act in
accordance with the Finance Director’s written procedures and the City’s Investment
Policy, and who exercise due diligence, shall be relieved of personal responsibility for the
credit risk or market price change of an investment, provided deviations from expectations
are reported in a timely fashion and appropriate action is taken to control adverse
developments.
C. Ethics and Conflicts of Interest
Officers and designated employees involved in the investment process shall refrain from
personal business activity that could conflict with the proper execution of the investment
program, or which could impair their ability to make impartial investment decisions.
Employees and investment officials shall disclose to the City Manager in writing any
material financial interests in financial institutions that conduct business within this
jurisdiction, and they shall further disclose any large personal financial/investment
positions that could be related to the performance of the City’s portfolio. Employees and
officers shall subordinate their personal investment transactions to those of the City of
Tukwila, particularly with regard to the time of purchases and sales.
Persons authorized to invest shall not accept gifts form the institutions with which the City
places investments. Occasional business meals are acceptable and must be reported to
the Finance Director and Finance Committee.
7. Safekeeping, Custody and Controls
A. Delivery vs. Payment
All trades of marketable securities will be executed (cleared and settled) on a delivery vs.
payment (DVP) basis to ensure that securities are deposited in the City’s safekeeping
institution prior to the release of funds.
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City of Tukwila Investment Policy 2025 Page 7 of 18
B. Third-Party Safekeeping
Prudent treasury management requires that all purchased securities be bought on a
delivery versus payment (DVP) basis and be held in safekeeping by the City, an
independent third-party financial institution, or the City’s designated depository.
The City’s Finance Director shall designate all safekeeping arrangements and an
agreement of the terms executed in writing. All securities will be receipted and recorded
based on the terms in the custodial contract. The third-party custodian shall be required
to provide a monthly statement to the City listing at a minimum each specific security, book
yield, description, maturity date, market value, par value, purchase date, and CUSIP
number. The City will have online access through the safekeeping bank for verification of
the account holdings and transactions.
All collateral securities pledged to the City for certificates of deposit or demand shall be
held in a segregated account at the issuing financial institution that is reporting to the
State’s Public Deposit Protection Commission (PDPC).
C. Performance Standards / Benchmark
The investment portfolio is expected to provide similar returns to the benchmark over
interest rate cycles but may underperform or outperform in certain periods. The City’s cash
management portfolio shall be managed using as comparison for market yield of [Name
a specific benchmark, i.e. 3-Year Constant Maturity US Treasury Index, 0-3 year Treasury
Index, etc.].
D. Downgraded Securities
The City may, from time to time, be invested in a security whose rating is downgraded. In
the event a rating drops below the minimum allowed by this policy, the Finance Director
will review and recommend an appropriate plan of action to the Council via the Finance
Committee. If the City utilizes an Investment Advisor, that Investment Advisor shall notify
the Finance Director and recommend a plan of action within one month. The City may
continue to hold a downgraded investment to maturity if a probable outcome is the
eventual realization of full value, rather than a realized loss if divested prior to maturity.
E. Internal Controls
The Finance Director is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the City are protected from loss, theft or
misuse. Specifics for the internal controls shall be documented in an investment
procedures manual.
The internal control structure shall be designed to provide reasonable assurance that
these objectives are met. The concept of reasonable assurance recognizes that the cost
of a control should not exceed the benefits likely to be derived and the valuation of costs
and benefits requires estimates and judgments by management. The internal controls
shall address the following points at a minimum:
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City of Tukwila Investment Policy 2025 Page 8 of 18
i. Control of collusion
ii. Separation of transaction authority from accounting and recordkeeping
iii. Custodial safekeeping
iv. Avoidance of physical delivery securities of marketable securities
v. Clear delegation of authority to subordinate staff members
vi. Written confirmation of transactions for investments and wire transfers
vii. Dual authorizations of wire transfers
viii. Staff training and
ix. Review, maintenance and monitoring of security procedures both manual and
automated.
F. External Controls
The Office of the State Auditor requires that in accordance with Revised Code of
Washington 43.09.260, the City must undergo annual financial examinations performed
by State Examiners. Investment management is to be included as part of the annual
independent audit to assure compliance with this investment policy.
8. Authorized Financial Dealers
A. Broker/Dealers
The Finance Director or designee shall maintain and review annually a list of all authorized
financial institutions and broker/dealers that are approved to transact with the City for
investment purposes. Any firm is eligible to make an application to the City. Additions
and deletions to the list will be made at the City’s discretion. All broker/dealers and
financial institutions who desire to do business with the City must supply the Finance
Director with the following:
i. Annual audited financial statements.
ii. Proof of FINRA (Financial Industry Regulatory Authority) certification.
iii. Proof of registration with the State of Washington.
iv. A completed Broker/Dealer questionnaire and a certification of having read the
City Investment Policy.
B. Investment Advisors
The City may contract with an external investment advisor to assist with the management
of the City’s investment portfolio in a manner that is consistent with the City’s objectives
and this policy. Advisors must be registered under the Investment Advisers Act of 1940
and must act in a non-discretionary capacity, requiring approval from the City prior to all
transactions.
The Finance Director or designee may utilize the investment advisor’s approved
broker/dealer list in lieu of the City’s own approved list. The advisor must submit the
approved list to the City annually and provide updates throughout the year as they occur.
The advisor must maintain documentation of appropriate license and professional
credentials of broker/dealers on the list. The annual investment advisor broker/dealer
review procedures include:
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City of Tukwila Investment Policy 2025 Page 9 of 18
i. FINRA Certification check
- Firm Profile
- Firm History
- Firm Operations
- Disclosures of Arbitration Awards, Disciplinary and Regulatory Events
- State Registration Verification
ii. Financial review of acceptable FINRA capital requirements or letter of credit for
clearing settlements.
The advisor may be authorized through the contracted agreement to open accounts on
behalf of the City with the broker/dealers on the approved broker/dealer list. The City will
receive documentation directly from the brokers for account verification and regulatory
requirements.
C. Depositories
The City will only place funds exceeding the current FDIC insurance limits with banks
who are currently participating in the Washington State PDPC program.
Compliance/listing with the PDPC will be verified by the Finance Director or designee
annually.
D. Competitive Transactions
Transactions must be executed on a competitive basis and documented, excluding
securities and interfund loans issued by the City of Tukwila. Competitive prices should be
provided from at least three separate brokers, financial institutions or through a national
electronic trading platform. If the purchased security is only offered by one broker, then
other securities with similar structure may be used for documentation purposes. If an
Advisor handles trade executions, then they must provide the competitive documentation
as requested.
9. Authorized and Suitable Investments
A. Authorized Investments
All investments of the City are limited by RCW, principally RCW 35A.40.050 and
39.59.020.
Additional Specifications:
• This policy recognizes S&P, Moody’s and Fitch as the major Nationally Recognized
Statistical Ratings Organizations (NRSRO).
• Minimum credit ratings and percentage limitations apply to the time of purchase.
• All securities must be purchased on the secondary market and may not be purchased
directly from the issuer.
• Securities rated in the broad single-A category with a negative outlook may not be
purchased. Portfolio holdings of corporate notes downgraded to below single A and
portfolio holdings of securities rated single A with their outlooks changed to negative
may continue to be held. No additional purchases are permitted.
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City of Tukwila Investment Policy 2025 Page 10 of 18
B. Suitable Investments
U. S Treasury Obligations: Direct obligations of the United States Treasury.
US Agency Obligations: US Government Agency Obligations and US Government
Sponsored Enterprises (GSEs) which may include, but are not limited to the following:
Federal Farm Credit Banks Funding Corporation (FFCB), Federal Home Loan Bank
(FHLB), Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage
Corporation (FHLMC), and Tennessee Valley Authority (TVA).
Supranational Bonds: United States dollar denominated bonds, notes or other
obligations that are issued or guaranteed by supranational institutions, provided, that at
the time of investment, the institution has the United States as its largest shareholder.
These include: International Bank for Reconstruction and Development (IBRD or World
Bank); the International Finance Corporation (IFC); the Asian Development Bank (ADB)
and the Inter-American Development Bank (IADB).
Municipal Debt Obligations: Bonds of the State of Washington, any local government in
the State of Washington, General Obligation bonds outside the State of Washington; at
the time of investment the bonds must have one of the three highest credit ratings of a
nationally recognized rating agency. Debt of the City of Tukwila is not required to be rated.
Corporate Notes: Unsecured debt obligations purchased in accordance with the
investment policies and procedures adopted by the State Investment Board. Corporate
notes must be rated at least weak single A (A-) or better by all the major rating agencies
that rate the note at the time of purchase for inclusion in the corporate note portfolio. The
maturity must not exceed 5.5 years and the maximum duration of the corporate note
portfolio cannot exceed 3 years. The percentage of corporate notes that may be
purchased from any single issuer rated AA- or better by all major rating agencies that rate
the note is 3% of the assets of the total portfolio. The percentage of corporate notes that
may be purchased from any single issuer rated in the broad single A (A-) category from
all the major rating agencies that rate the security is 2% of the total portfolio. The individual
country limit of non-U.S. and non-Canadian exposure is 2% of the total portfolio. The
exposure is determined by the country of domicile of the issuers of portfolio securities.
Commercial Paper: Commercial paper must be rated with the highest short-term credit
rating category of any two major Nationally Recognized Statistical Rating Organizations
(NRSROs) at the time of purchase. If the commercial paper is rated by more than two
major NRSROs, it must have the highest rating from all of them. Commercial paper
holdings may not have maturities exceeding 270 days. Any commercial paper purchased
with a maturity longer than 100 days must also have an underlying long-term credit rating
at the time of purchase in one of the three highest rating categories of an NRSRO. The
percentage of commercial paper that may be purchased from any one issuer is 3% of the
market value of the total portfolio. Issuer constraints will apply to the combined holdings
of corporate notes and commercial paper holdings.
Certificates of Deposit: Non-negotiable Certificates of Deposit of financial institutions
which are qualified public depositories as defined by RCW 39.58.010(2) and in
accordance with the restrictions therein.
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City of Tukwila Investment Policy 2025 Page 11 of 18
Bank Time Deposits and Savings Accounts: Deposits in PDPC approved banks.
Local Government Investment Pool: Investment Pool managed by the Washington
State Treasury Office.
C. Bank Collateralization
The PDPC makes and enforces regulations and administers a program to ensure public
funds deposited in banks and thrifts are protected if a financial institution becomes
insolvent. The PDPC approves which banks and thrifts can hold state and local
government deposits and monitors collateral pledged to secure uninsured public deposits.
Under the act, all public treasurers and other custodians of public funds are relieved of the
responsibility of executing tri-party agreements, reviewing pledged securities, and
authorizing additions, withdrawals, and exchanges of collateral.
D. Prohibited Investments
i. The City shall not lend securities nor directly participate in a securities lending or
reverse repurchase program.
ii. The City shall not invest in mortgage-backed securities.
iii. The City shall not invest in Equities
iv. The City shall not invest in Cryptocurrency
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City of Tukwila Investment Policy 2025 Page 12 of 18
10. Investment Parameters
A. Diversification
The City will diversify the investment of all funds by adhering to the constraints listed in
the following table. Investments in securities shall not exceed the following percentages
of the total portfolio at the time of purchase.
Total Portfolio Diversification Constraints
B. Investment Maturity
i. Liquidity Funds – Tier 1
Ratings, S&P,
Issue Type Maximum % Maximum % Moody's, or Maximum
Holdings per Issuer Equivalent Maturity
NR SRO
US Treasury Obligations 100%None N/A 10 years
US Agency Obligations 100%35%N/A 10 years
Supranational Agency Notes 10%5%AA-/Az3 10 years
Municipal Bonds (GO Outside WA 30%5%A-/A3 Short Term 10 years
City of Tukwila Debt Obligations 15%None N/A N/A
Corporate Notes 25%
3% for AA-
2% for A-,
AA+A-/A3 Short Term 5.5 year
Commercial Paper 25%3%
A1{1 Long Term A-
/A3 270 days
Bank Time Deposits/Savings 20%10%
Deposits in
PDPC approved
banks N/A
Certificates of Deposit 25%10%
Deposits in
PDPC approved
banks 5 years
State LGIP 100%None N/A N/a
Issuer constraints apply to the combined issues in corporate and commercial paper holdings.
Sort Term Ratings: Moody's - P1MIG1/VMIG1, S&P - A-1/SP-1, Fitch - F1
Note: Individual country limit of non-US/non-Canadian exposure is 2% of total portfolio
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City of Tukwila Investment Policy 2025 Page 13 of 18
Liquidity funds will be defined as those funds that are in the State LGIP City, bank
deposits, bank certificates of deposits or money market instruments and will be
available for immediate use.
ii. Investment Core Funds – Tier 2
Investment funds will be defined as the funds in excess of liquidity requirements and
invested in authorized investments and maturity structure listed below.
iii. Total Portfolio Maturity Constraints:
C. Strategic Philosophy
The primary investment philosophy of the City is to match investment maturities with
expected cash outflows. Securities shall generally be held until maturity, with the following
exceptions:
i. A security with a declining credit may be sold early to protect the principal value
of the portfolio.
ii. The portfolio duration or maturity buckets should be adjusted to better reflect
the structure of the underlying benchmark portfolio.
iii. A security exchange that would improve the quality, yield and target maturity
of the portfolio based on market conditions.
iv. A sell of a security to provide for unforeseen liquidity needs.
Maturity Constraints Minimum % of
Total Portfolio
Under 30 days 10%
Under 1 year 25%
Under 5 years 90%
Under 10 years 100%
Maturity Constraints Total Portfolio
Maximum
Weighted Average Maturity 2.0 years
Duration of Corporate Note Portfolio 3.0 years
Security Structure Constraint Maximum % of
Total Portfolio
Callable Agency Securities 25%
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City of Tukwila Investment Policy 2025 Page 14 of 18
11. Reporting Requirements
A. Reporting
The Finance Director or designee shall be responsible for investment reporting. At a
minimum, monthly reporting (RCW 35.39.032) shall be made available providing detailed
information on the investment portfolio.
Specific Requirements:
• Book Yield
• Holdings Report including mark to market and security description
• Transactions Report
• Weighted Average Maturity or Duration
B. Performance Standards/Evaluation
i. The portfolio shall be managed to obtain a fair rate of return and earnings rate that
incorporates the primary objectives of protecting the City’s capital and assuring
adequate liquidity to meet cash flow needs.
ii. The investment portfolio will be invested into a predetermined structure that will be
measured against a selected benchmark portfolio. The structure will be based upon a
chosen minimum and maximum duration (average maturity) and will have the objective
to achieve market rates of returns over long investment horizons. The purpose of a
benchmark is to appropriately manage the risk in the portfolio through interest rate
cycles. The investment portfolio is expected to provide similar returns to the
benchmark over interest rate cycles but may underperform or outperform in certain
periods. The portfolio will be positioned to first protect principal and then achieve
market rates of return. The benchmark used will be the US treasury 0–3-year index or
US treasury 0–5-year index and comparisons will be calculated monthly and reported
quarterly.
iii. The liquidity component yield will be compared quarterly to the LGIP average yield.
C. Compliance Report
A quarterly compliance report will be generated comparing the portfolio positions to this
investment policy.
The Investment Policy sets forth concentration constraints and minimum credit ratings for
each type of security. These limits apply to the initial purchase of a security and do not
automatically trigger the sale of a security as the portfolio value fluctuates or in the event
of credit rating downgrade. Due to fluctuations in the aggregate surplus funds balance,
maximum percentages for a particular issuer or investment type may be exceeded at a
point in time. Securities need not be liquidated to realign the portfolio; however,
consideration should be given to this matter when future purchases are made to ensure
that appropriate diversification is maintained.
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City of Tukwila Investment Policy 2025 Page 15 of 18
D. Accounting Method
The City shall comply with all required legal provisions and Generally Accepted
Accounting Principles (GAAP). The accounting principles are those contained in the
pronouncements of authoritative bodies including, but not necessarily limited to, the
Governmental Accounting Standards Board (GASB).
Pooling of Funds: Except for cash in certain restricted and special funds, the City will
consolidate balances from all funds to maximize investment earnings. Investment income
will be allocated to the various funds based on their respective participation in the
investment program and in accordance with generally accepted accounting principles.
12. Policy Adoption
The City’s Investment Policy shall be adopted by the City Council and reviewed by the Council
Finance Committed as needed but not less than every two years. This Policy has been adopted
by the City Council on ____________, 2025.
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City of Tukwila Investment Policy 2025 Page 16 of 18
Glossary of Terms
Agency Securities: Government sponsored enterprises of the US Government.
Bankers Acceptances: A time draft accepted (endorsed) by a bank or trust company. The
accepting institution guarantees payment of the bill, as well as the issuer. BAs are short-term
non-interest-bearing notes sold at a discount and redeemed by the accepting bank at maturity for
full face value.
Bond: An interest-bearing security issued by a corporation, government, governmental agency,
or other body. It is a form of debt with an interest rate, maturity, and face value, and specific
assets sometimes secure it. Most bonds have a maturity of greater than one year and generally
pay interest semiannually. See Debenture.
Broker: An intermediary who brings buyers and sellers together and handles their orders,
generally charging a commission for this service. In contrast to a principal or a dealer, the broker
does not own or take a position in securities.
Collateral: Securities or other property that a borrower pledges as security for the repayment of
a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
Commercial Paper: Short-term, unsecured, negotiable promissory notes issued by
corporations.
Current Maturity: The amount of time left until an obligation matures. For example, a one-year
bill issued nine months ago has a current maturity of three months.
CUSIP: A CUSIP number identifies securities. CUSIP stands for Committee on Uniform Security
Identification Procedures, which was established under the auspices of the American Bankers
Association to develop a uniform method of identifying municipal, U.S. government, and corporate
securities.
Dealer: An individual or firm that ordinarily acts as a principal in security transactions. Typically,
dealers buy for their own account and sell to a customer from their inventory. The dealer’s profit
is determined by the difference between the price paid and the price received.
Debenture: Unsecured debt backed only by the integrity of the borrower, not by collateral, and
documented by an agreement called an indenture.
Delivery: Either of two methods of delivering securities: delivery vs. payment and delivery vs.
receipt (also called “free”). Delivery vs. payment is delivery of securities with an exchange of
money for the securities.
Duration: A measure used to calculate the price sensitivity of a bond or portfolio of bonds to
changes in interest rates. This equals the sum of the present value of future cash flows.
Full Faith and Credit: Indicator that the unconditional guarantee of the United States government
backs the repayment of a debt.
General Obligation Bonds (GOs): Bonds secured by the pledge of the municipal issuer’s full
faith and credit, which usually includes unlimited taxing power.
Government Bonds: Securities issued by the federal government; they are obligations of the
U.S. Treasury; also known as “governments.”
Interest: Compensation paid or to be paid for the use of money. The rate of interest is generally
expressed as an annual percentage.
Investment Funds: Core funds are defined as operating fund balance, which exceeds the City’s
daily liquidity needs. Core funds are invested out the yield curve to diversify maturity structure in
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City of Tukwila Investment Policy 2025 Page 17 of 18
the overall portfolio. Having longer term investments in a portfolio will stabilize the overall portfolio
interest earnings over interest rate cycles.
Investment Securities: Securities purchased for an investment portfolio, as opposed to those
purchased for resale to customers.
Liquidity: The ease at which a security can be bought or sold (converted to cash) in the market.
A large number of buyers and sellers and a high volume of trading activity are important
components of liquidity.
Liquidity Component: A percentage of the total portfolio that is dedicated to providing liquidity
needs for the City.
LGIP: Local Government Investment Pool run by the State of Washington Treasurer’s office
established to help cities with short term investments.
Mark to Market: Adjustment of an account or portfolio to reflect actual market price rather than
book price, purchase price or some other valuation.
Municipals: Securities, usually bonds, issued by a state, its agencies, by cities or other municipal
entities. The interest on “munis” is usually exempt from federal income taxes and state and local
income taxes in the state of issuance. Municipal securities may or may not be backed by the
issuing agency’s taxation powers.
Par Value: The value of a security expressed as a specific dollar amount marked on the face of
the security or the amount of money due at maturity. Par value should not be confused with
market value.
Portfolio: A collection of securities held by an individual or institution.
Prudent Person Rule: A long-standing common-law rule that requires a trustee who is investing
for another to behave in the same way as a prudent individual of reasonable discretion and
intelligence who is seeking a reasonable income and preservation of capital.
Quotation or Quote: A bid to buy or the lowest offer to sell a security in any market at a particular
time.
Repurchase Agreement: Range in maturity from overnight to fixed time to open end. Repos
involve a simultaneous sale of securities by a bank or government securities dealer to an investor
with an agreement for the bank or government securities dealer to repurchase the securities at a
fixed date at a specified rate of interest.
Treasury Bill (T-Bill): An obligation of the U.S. government with a maturity of one year or less.
T-bills bear no interest but are sold at a discount.
Treasury Bonds and Notes: Obligations of the U.S. government that bear interest. Notes have
maturities of one to ten years; bonds have longer maturities.
Yield: The annual rate of return on an investment, expressed as a percentage of the investment.
Income yield is obtained by dividing the current dollar income by the current market price for the
security. Net yield, or yield to maturity, is the current income yield minus any premium above par
or plus any discount from par in the purchase price, with the adjustment spread over the period
from the date of purchase to the date of maturity of the bond.
Yield to Maturity: The average annual yield on a security, assuming it is held to maturity; equals
to the rate at which all principal and interest payments would be discounted to produce a present
value equal to the purchase price of the bond.
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City of Tukwila Investment Policy 2025 Page 18 of 18
Ratings Table – Long-Term Three Highest Rating Categories S&P Moody’s Fitch Definition
AAA Aaa AAA Highest credit quality
AA+, AA, AA- Aa1, Aa2, Aa3 AA+, AA, AA- Very high credit quality
A+, A, A- A1, A2, A3 A+, A, A- High credit quality
BBB+, BBB, BBB- Baa1, Baa2, Baa3 BBB+, BBB, BBB- Good credit quality
BB+, BB, BB- Ba1, Ba2, Ba3 BB+, BB, BB- Non-investment grade
Ratings Table – Short-Term Highest Rating Category S&P Moody’s Fitch Definition
A1+, A1 P1+, P1 F1+, F1 Highest credit quality
Municipal Commercial Paper
A-1, A-1+, SP-1+, SP-1 P1, MIG1, VMIG1 F1+, F1 Highest credit quality
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Legislation: Debt Policy Page 1 of 2
Version: 6/16/2025
Staff: T. Cullerton
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING A DEBT POLICY;
AND REPEALING RESOLUTION NO. 1840
WHEREAS, on September 2, 2014, the City Council adopted Resolution No. 1840
adopting a debt policy; and
WHEREAS, a debt policy and appropriate management of debt issued by the City is
an important factor in measuring the City’s financial performance and condition; and
WHEREAS, the proper management of borrowing can yield significant advantages;
and
WHEREAS, debt issuance planning with the City’s Capital Improvement Program
(CIP), will ensure alignment between financing strategies and long-term capital priorities;
and
WHEREAS, the use of long-term debt for operating or maintenance costs, except in
declared emergencies authorized by the City Council, promotes fiscal discipline and
responsible debt management; and
WHEREAS, clear delineation of the roles and responsibilities of the City Council and
Finance Director, including authority over interfund loans, delegation of bond issuance
approvals, and oversight of post-issuance compliance activities, will ensure appropriate
checks and balances; and
WHEREAS, expanding the range of eligible financing tools and debt instruments,
including interfund loans, state and federal loan programs, and other legal financing
contracts, provides the City with greater flexibility and cost-effective funding options; and
WHEREAS, enhancing compliance with federal and state laws by establishing
comprehensive procedures for continuing disclosure, arbitrage rebate monitoring, and
Attachment B
DRAFT
26
Legislation: Debt Policy Page 2 of 2
Version: 6/16/2025
Staff: T. Cullerton
post-issuance compliance with IRS and SEC regulations, thereby safeguard s the City's
credit standing and legal obligations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Repealer. Resolution No. 1840 is hereby repealed.
Section 2. Findings Incorporated and Adoption. The above “whereas” recitals are
adopted as findings in support of this resolution, and the City of Tukwila Debt Policy
attached hereto as Exhibit A is adopted.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this _______ day of _________________, 2025.
ATTEST/AUTHENTICATED:
Andy Youn-Barnett, CMC, City Clerk Tosh Sharp, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Office of the City Attorney
Attachment: Exhibit A – City of Tukwila Debt Policy - 2025
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City of Tukwila Debt Policy Page 1 of 10
CITY OF TUKWILA
DEBT POLICY
ADOPTED [DATE]
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City of Tukwila Debt Policy Page 2 of 10
TABLE OF CONTENTS
SECTION I. INTRODUCTION 3
SECTION II. GOVERNING PRINCIPLES 3
SECTION III. ROLES AND RESPONSIBILITIES 4
SECTION IV. PROFESSIONAL SERVICES 5
SECTION V. TRANSACTION-SPECIFIC POLICIES 6
SECTION VI. COMPLIANCE POLICIES 9
SECTION VII. OTHER POLICIES 10
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City of Tukwila Debt Policy Page 3 of 10
Section I. Introduction
Purpose and Overview
The objective of this policy is to provide general guidance for the issuance and management of all City of
Tukwila (the City) debt. Further, this policy establishes criteria to protect the City’s financial integrity while
providing a mechanism to fund the City’s capital needs prudently and cost effectively. Adherence to this
policy is essential to ensure that the City Council (Council) maintains a debt position which allows the
Council to protect the City, its functionality, and the credit quality of its obligations.
The City’s Finance Department is charged with ensuring compliance with all debt policy requirements.
Capital Planning
The City shall integrate its debt issuance with its Capital Improvement Program (referred to herein as CIP
or Capital Facilities Plan) spending to ensure that planned financing conforms to policy targets regarding
the level and composition of outstanding debt. This planning considers the long-term horizon, paying
particular attention to financing priorities, capital outlays and competing projects.
Long-term borrowing shall be confined to the acquisition and/or construction of capital improvements
and shall not be used to fund operating or maintenance costs. The issuance of debt to fund operating
deficits is not permitted except in emergencies as adopted by formal action by the City Council. For all
capital projects under consideration, the City shall budget and set aside sufficient revenue from
operations to fund ongoing maintenance needs and to provide reserves for periodic replacement and
renewal. The source of funds for the project should reflect the intended use of bond financing.
Section II. Governing Principles
In the issuance and management of debt, the City shall comply with the State of Washington (State)
constitution and with all other legal requirements imposed by federal, State, and local rules and
regulations, as applicable. The following section highlights the legal framework for debt issuance.
Governing Law
State Statutes. The City issues debt in accordance with the Revised Code of Washington (RCW), in
particular chapters 39.36, 39.46, and 39.53, the State constitution along with all other City, State, and
federal laws, rules, and regulations.
Federal Rules and Regulations. The City shall issue and manage debt in accordance with the limitations
and constraints imposed by federal rules and regulations, including but not limited to, Internal Revenue
Code of 1986, as amended, and Treasury Department Regulations thereunder (Tax Law), and the
Securities Acts of 1933 and 1934 (Securities Law).
Local Rules and Regulations. The City shall issue and sell debt in accordance with the limitations and
constraints imposed by the Tukwila Municipal Code (TMC), including but not limited to Title 3 (Revenue
and Finance) and City ordinances, resolutions, policies, procedures, and bond covenants.
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City of Tukwila Debt Policy Page 4 of 10
Legal Debt Limits for GO Debt
State law (RCW 39.36.020) allows for the issuance of general obligation (GO) debt, through a public vote,
of up to 7.5% of the City’s assessed property valuation. The limit of 7.5% of assessed valuation for GO
debt is divided between three different use types: 1) 2.5% for municipally owned water, sewer, or electric
facilities; 2) 2.5% for open space and parks; and 3) 2.5% for general government purposes. Within the
2.5% limit for general government purposes, State law allows the Council to issue debt without a vote of
the people. This non-voted debt (also called councilmanic debt) cannot be greater than 1.5% of the
assessed property valuation of the City.
Section III. Roles and Responsibilities
Responsibilities of City Council
• Approve this policy and any updates/changes to this policy to help ensure compliance with all
applicable rules and regulations for debt issuance.
• Approve projects to be financed as part of the City Capital Facilities Plan.
• Adopt an ordinance authorizing the issuance and sale of debt, and, as applicable, setting forth the
delegation requirements provided for in RCW 39.46.040 when appointing a designated
representative, the City Finance Director or their designee, to approve the final terms of the debt.
• Approve budgets sufficient to provide for the timely payment of principal and interest on all debt.
Responsibilities of the Finance Director
• Apply and promote prudent fiscal practices.
• Oversee any debt issuance including sale of bonds and review and approval of disclosure
documents.
• Approve the issuance of debt at the lowest acceptable cost and risk within the parameters
authorized by City Council in the bond ordinance.
• Provide for the timely payment of principal and interest payment on all debt and ensure the fiscal
agent receives funds for payment of debt service on or prior to the payment date.
• Ensure compliance with all Tax Laws, Securities Laws, contractual requirements, and other rules
and regulations governing the issuance of debt.
• Ensure compliance with all terms, conditions, post-issuance requirements, and Tax Law
requirements imposed by law and/or the legal documents governing the debt issued.
• Ensure any annual disclosure reports and notices regarding the occurrence of certain events are
timely posted to the EMMA (Electronic Municipal Market Access) system in accordance with
continuing disclosure undertakings of the City pursuant to Securities Law.
• Maintain records for all outstanding debt.
• Oversee all aspects of debt management.
• Solicit and select professional services providers as necessary, to administer debt financing.
• Consult with the City’s contracted municipal advisor to determine the method of sale best suited
for each issue of debt (competitive sale, negotiated sale, or bank/direct placement).
• Select the manner of sale of debt.
• Monitor opportunities to refund debt and recommend such refunding as appropriate.
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City of Tukwila Debt Policy Page 5 of 10
• Provide pertinent information to credit rating agencies when issuing debt and as routine credit
reviews occur.
IV. Professional Services
The City’s Finance Director will be responsible for the solicitation and selection of professional services as
necessary to administer the City’s debt program. Professional service providers necessary to issue debt
may include, but are not limited to bond counsel, disclosure counsel (which may be bond counsel),
municipal advisor, underwriters, banks, rating agencies, and fiscal agent. Selection of the service providers
will consider availability, professional knowledge, accountability, cost, as well as successful partnerships
in previous debt issuances. The City will issue debt considering cost and associated risk.
Professional Service Providers
Bond Counsel – Debt issued by the City will generally include a written opinion by bond counsel affirming
that the City is legally authorized to issue the proposed debt. The opinion shall provide that the obligation
is legal, valid and binding, and enforceable against the City. In the case of tax exempt financing, the legal
opinion will address the treatment of interest for purposes of Tax Law.
Municipal Advisor – A Municipal Advisor may be used to assist in the issuance of the City’s debt. The
Municipal Advisor will provide the City with objective advice and analysis on debt issuance. This includes,
but is not limited to, coordinating of finance team, monitoring of market opportunities, structuring and
pricing of debt, competitive sale execution, and reviewing the preliminary and final official statements.
Disclosure Counsel - The Disclosure Counsel (which may be bond counsel) plays a critical role in ensuring
that the City's preliminary and final official statements comply with Securities Laws and disclosure
requirements. Disclosure Counsel provides legal guidance on the accuracy, completeness, and
transparency of the information presented to investors, helping to mitigate the risk of material
misstatements or omissions. Working closely with the City's finance team, bond counsel, and municipal
advisor, Disclosure Counsel reviews financial and operational disclosures, drafts legal sections of the
official statements, and provides legal advice in connection with the City’s obligations under SEC Rule
15c2-12 and other applicable regulations. Their expertise helps protect the City from potential legal and
regulatory risks while maintaining investor confidence in the bond issuance process.
Underwriters – An Underwriter will be selected in advance for all debt issued in a negotiated sale method.
The Underwriter is responsible for purchasing debt and reselling the debt to investors.
Arbitrage Rebate Consultant – As necessary, the City may engage with an arbitrage rebate consultant to
ensure the City is compliant with Tax Law on tax-exempt bonds by calculating potential arbitrage rebate
liabilities. The consultant will analyze investment earnings, determine rebate amounts owed under IRS
Code 148(f), and assist with documentation, deadlines, and best practices to minimize exposure and avoid
penalties.
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City of Tukwila Debt Policy Page 6 of 10
Fiscal Agent – A fiscal agent may be used to provide accurate and timely securities processing and payment
to bondholders. As provided under RCW 43.80, the City will work with the Fiscal Agent that is determined
by the State.
Section V. Transaction-Specific Policies
For any City project planned to be funded through debt, an analysis will be done to consider: (a) other
potential ways to finance the project; (b) future operating and maintenance costs, including debt
repayment; (c) expected cash inflows that could help offset the amount borrowed; and (d) anticipated
cash outflows for construction or equipment to ensure compliance with arbitrage rules.
Method of Sale
The Finance Director, in consultation with the City’s municipal advisor, will determine the method of sale
best suited for each issue of debt (competitive sale, negotiated sale, or bank/direct placement). The type
of debt to be issued and manners of the sale will be submitted to the City Council for approval in the bond
ordinance. The bond ordinance will authorize the issuance and sale of debt, and, as applicable, set forth
the delegation requirements provided for in RCW 39.46.040 when appointing a designated
representative, the City Finance Director or their designee, to approve the final terms of the debt.
Bond Insurance
For each issue, the City, in conjunction with its municipal advisor, will evaluate the costs and benefits of
bond insurance or other credit enhancements. Any credit enhancement purchases by the City must be
competitively procured in a manner deemed reasonable by the City Finance Director.
Bond Ballot Measures
Prior to any unlimited tax general obligation bond (described below) proposition being placed before the
voters, the capital project under consideration must, unless otherwise justified and have found to be in
the best interest of the City, have been included in the City’s Capital Facilities Plan. The source of funds
for the project should reflect the intended use of bond financing.
Investor and Rating Agency Relations
The City will maintain good communications with bond rating agencies and investors about its fiscal
condition. The City will provide full, accurate and complete disclosure on financial reports and in disclosure
documents to comply with the anti-fraud requirements of Securities Laws.
Short-term debt
The City may use short-term debt, defined as a period not to exceed three years, to fund cash flow needs,
which may be caused by a delay in receipting tax revenues or issuing long-term debt. The City will not
issue short-term debt for current operations, except in the event of an emergency.
The City may issue interfund loans rather than issuing outside debt to meet short-term cash flow needs.
The issuance of an interfund loan will be permissible only after an analysis of the loaning fund(s) indicate(s)
that excess funds are available, and the use of these funds will not impact the loaning fund(s) current
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City of Tukwila Debt Policy Page 7 of 10
operations or constitute a permanent diversion of funds. All interfund borrowing will bear interest based
upon at least the prevailing LGIP (Local Government Investment Pool) rate.
Council authorizes the City’s Finance Director to approve short-term interfund loans for a period not to
exceed three calendar months and the City Administrator to approve short-term interfund loans for a
period not to exceed 12 calendar months. See long-term debt section below for policy on loans exceeding
12 calendar months. The Finance Director shall notify the Finance & Governance Committee and/or City
Council of any use of directorial or administrator approved interfund loans at the first reasonable
opportunity.
Interfund loans are not considered “debt” for purposes of State law, Securities Law, or Tax Law.
Long-term debt
The City will issue long-term debt, defined as a period greater than three years, for capital projects which
cannot reasonably be financed on a pay-as-you-go funding strategy from anticipated cash flows.
Acceptable uses of bond proceeds are one-time capital projects that can be capitalized and depreciated
in accordance with the City’s accounting principles. (Refunding debt is also an acceptable use. See
refunding debt section below.)
The City Council may issue long-term interfund loans rather than issuing outside debt instruments as a
means of financing capital improvements. The issuance of an interfund loan will be permissible only after
an analysis of the loaning fund(s) indicate that excess funds are available, and the use of these funds will
not impact the loaning fund(s) current operations or constitute a permanent diversion of funds. All
interfund borrowing will bear interest based upon at least the prevailing LGIP (Local Government
Investment Pool) rate.
The decision to use an interfund loan rather than outside debt to fund capital projects will be based on
which is deemed to be the most cost-effective approach to meet City capital needs. The City’s Finance
Department is responsible for making such an assessment. Interfund loans are not considered “debt” for
purposes of State law, Securities Law, or Tax Law.
The City will not issue long-term debt for current operational needs, except in the event of an emergency.
Types of long-term debt the City may issue:
Limited Tax General Obligation (LTGO) Bonds: LTGO debt is secured by a pledge of the full faith and credit
of the City and is payable from regular property taxes and other legally available funds. These bonds can
be issued without a vote of registered voters but are limited in that debt service payments must be paid
from legally available City revenue sources. The amount of LTGO outstanding debt cannot exceed the
threshold stated above.
Unlimited Tax General Obligation (UTGO) Bonds: UTGO debt is secured by a pledge of the full faith and
credit of the City and is payable from excess property taxes and other legally available funds. These bonds
can only be issued when authorized by a 60% majority vote of registered voters (meeting the minimum
voter turnout requirement). As part of the ballot proposition, voters will approve the issuance of the UTGO
debt and an excess property tax levy, as a completely new and dedicated source of revenue, to pay the
debt service. The amount of UTGO debt cannot exceed the thresholds stated above. Proceeds of UTGO
debt are limited to capital purposes only and not the replacement of equipment.
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City of Tukwila Debt Policy Page 8 of 10
Revenue Bonds: Revenue bonds are used to finance construction of and/or improvements to facilities of
enterprise systems operated by the City in accordance with the Capital Facilities Plan and are payable
from and secured by a pledge of revenue of the enterprise. No taxing power or general fund pledge is
provided as security, with the exception of double-barrel bonds. Double-barrel bonds are a type of
municipal bond that are backed by enterprise funds and the full faith and credit of the City. Unlike general
obligation bonds, revenue bonds are not subject to the City’s statutory debt limitation nor is voter
approval required. Revenue bonds may contain certain covenants and obligations of the City, including
but not limited to, future parity bond tests, annual debt service coverage requirements, restrictions on
disposal of the enterprise facility/utility, and other terms to protect the stream of revenue pledged to the
repayment of the revenue bonds.
Reserve accounts may be created on a transaction-by-transaction basis. Any reserve account created shall
be maintained and funded as required by bond ordinances and as deemed advisable by the City Council
or the designated representative on behalf of the City. The City shall structure any debt service reserve
fund to not violate the Tax Code.
The City will strive for annual revenue bond debt coverage of at least 1.5 times the annual debt service
paid in such year. Additional bonds issued may be subject to additional bonds tests as described in bond
ordinances.
Special Assessment Bonds: Also referred to as Local Improvement District (LID) bonds, this type of debt is
used to finance capital improvements that benefit property owners within the LID. LID debt is repaid from
annual assessments paid to the City by property owners within the LID. LIDs are formed by City Council
following the process outlined in State statutes and chapter 13.04 TMC. The cost is borne only by those
who receive a special benefit from the improvements. LID debt is not part of the debt capacity calculation.
Other Debt Instruments: Instruments such as Public Works Trust Fund loans or other financing contracts
issued through the State of Washington, federal grant loans, bond anticipation notes (BAN), tax
anticipation notes (TAN), bank loans, and/or other legal debt issues may be incurred as allowed by law.
Refunding Debt
Refunding debt may be issued by the City in accordance with chapter 39.53 RCW. Refunding debt is
typically issued to take advantage of lower interest rates for overall cost savings, restructure debt, or
modify bond covenants. Refunding bonds are an acceptable use of bond proceeds provided that, and
unless otherwise justified and found to be in the best interest of the City, a) the net present value (NPV)
of the overall savings (not by maturity) is at least 3% and b) the final maturity date of the obligation is not
extended.
Other Considerations
The following terms shall be applied to the City’s debt transactions, as appropriate. Individual terms may
change as dictated by the marketplace or the unique qualities of the transaction.
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City of Tukwila Debt Policy Page 9 of 10
• Maturity –The City shall issue debt with an average life less than or equal to the average life of
the assets being financed. Unless otherwise stated in law, the final maturity of the debt shall be
no longer than 40 years (RCW 39.46.110).
• Debt Service Structure – Unless otherwise justified, debt service should be structured on a level
basis (i.e., level annual payments). Refunding bonds should be structured to produce equal
savings by fiscal year. Unless otherwise justified, debt shall not have capitalized interest. If
appropriate, debt service reserve funds may be used for revenue bonds.
• Price Structure – The City’s long-term debt may include par, discount, and premium bonds. Call
Provisions – For each transaction, the City shall evaluate the costs and benefits of call provisions.
In general, the City shall opt for a call date no later than 10 ½ years from the date of the bonds.
• Tax-exemption – Unless otherwise justified and deemed necessary, the City shall issue its debt on
a tax-exempt basis.
• Reimbursement declaration – Must be made prior to bond issuance if the City intends to be
reimbursed out of tax exempt bond proceeds for capital costs paid prior to the closing date.
• The City will not use derivatives in connection with any new financings.
• The City will not become obligated for any new City debt or otherwise be involved in any new
financing that would include a variable rate of interest or variable debt service (excluding of any
additional rent payable under a financing lease or other obligation for ongoing transaction fees).
Section VI. Compliance Policies
The City will comply with all federal, State, contractual restrictions and City policies regarding the
investment of bond proceeds and associated funds subject to debt-related investment limitations. Such
requirements may include restrictions on the type of securities allowed the yield on such securities, and
the length of time that such proceeds and funds may be invested.
For refunding escrows, the City may invest funds in State and Local Government Series (SLGS) securities
issued by the U.S. Treasury, or, after satisfying requirements of Tax Law and if determined advisable after
consultation with the City’s municipal advisor and bond counsel, in open-market securities as permitted
under State law and relevant bond covenants.
The City will maintain a system for tracking bond proceeds, including how proceeds are invested, when
they are spent, and for what purpose. Bond proceeds shall, unless otherwise permitted, be tracked
separately from other City funds and on an issue by issue basis.
The City shall maintain records related to the bonds for the life of the bonds (plus any refunding bonds)
plus three years.
The City will, unless otherwise permitted, spend at least 85% of tax-exempt bond proceeds within three
years from the date of issuance pursuant to Tax Law, and take such steps as necessary to avoid or manage
arbitrage. The City will maintain a system of recordkeeping and reporting to meet the arbitrage rebate
compliance requirement of the IRS (Internal Revenue Service, IRC 148) regulation. For each bond issue,
the recordkeeping will include tracking the yield and investment earnings on bond proceeds, calculating
rebate payments, and remitting any rebate earnings to the federal government in a timely manner to
preserve the tax-exempt status of the outstanding debt obligation. Any bond proceeds invested will
comply with the City’s investment policy and strategies, unless further restricted by bond covenant. The
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City of Tukwila Debt Policy Page 10 of 10
City may, when determined to be in the best interest of the City or required, contract with an arbitrage
rebate consultant to assist with the arbitrage rebate calculation.
The City will repay principal plus interest in accordance with the payment terms of the bond or contract.
Furthermore, the City will comply with all bond or contract covenants. This includes, but is not limited to,
any undertakings to provide ongoing disclosure and notice of certain listed events under Securities Laws.
Annual disclosure will take the form of the City’s audited annual financial statements as well as other
information required by the bond or contract that is not reasonably contained in the annual report. The
City Finance Director will develop and comply with all post-issuance compliance policies and procedures
related to Tax Law and policies and procedures relating to initial and ongoing disclosure under Securities
Laws.
The Finance Director and bond counsel will coordinate their activities and review all debt issuance to
ensure that all securities are issued in compliance with State and federal legal and regulatory
requirements by the State law, Tax Law, Securities Law, rules and regulations.
The Finance Director may institute procedures to implement this policy and other bond covenants and
provisions related to State law, Tax Law, Securities Law, rules and regulations applicable to the City’s debt.
No derivative products shall be used in connection with City debt.
Section VII. Other Policies
Periodic Review
This debt policy must be adopted by Council. The policy will be reviewed at least every four years by the
Finance Department and modifications must be submitted to and approved by the Council.
37
City of Tukwila
City Council Finance & Governance Committee
Meeting Minutes
June 23, 2025 – 5:30 p.m. – Hybrid Meeting; Hazelnut Conference Room & MS Teams
Councilmembers Present: Armen Papyan, Chair; Dennis Martinez, Verna Seal
Staff Present: Aaron BeMiller, Tony Cullerton, Megan Marks, Marty Wine, Laurel
Humphrey
I.BUSINESS AGENDA
A.Resolutions adopting City Investment & Debt Policies
Staff is seeking approval to replace the current Investment and Debt policies to better align
with industry standards, expand on roles and responsibilities, and support a broader
financial strategy including capital planning and passive revenue development.
Item(s) for follow-up:
Provide regular reporting on investment rate of return.
Committee Recommendation
Unanimous approval. Forward to July 14, 2025 Committee of the Whole.
B.May 2025 Financial Report
Staff presented the report, which has been expanded to include more information.
Item(s) for follow-up:
Provide explanation for 301% increase in miscellaneous income in Fund 411 (Golf Course).
Committee Recommendation
Discussion only.
MISCELLANEOUS
The meeting adjourned at 6:35 p.m.
Ap
Committee Chair Approval
38
ITEM INFORMATION
STAFF SPONSOR: ERIC COMPTON ORIGINAL AGENDA DATE: 7/14/25
AGENDA ITEM TITLE Ordinance Granting a Non-Exclusive Franchise Agreement to Hyper Fiber
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 7/14/25 Mtg Date 7/14/25 Mtg Date Mtg Date 7/14/25 Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY Hyper Fiber is a consumer oriented internet service provider wanting to connect Tukwila
residents to high speed fiber for internet. Council is being asked to approve the new
ordinance for the franchise agreement that will allow Hyper Fiber to expand their network
into Tukwila and provide competition for local internet service providers.
REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: 6/23/25 COMMITTEE CHAIR: ABDI
RECOMMENDATIONS:
SPONSOR/ADMIN. Technology and Innovation Services / Joel Bush
COMMITTEE Unanimous Approval; Forward to 07/14 Committee of the Whole Meeting
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$0 $0 $0
Fund Source: NO FUNDING REQUIRED
Comments: Under the terms of the Franchise, Hyper Fiber is required to pay a $5000 administrative fee.
MTG. DATE RECORD OF COUNCIL ACTION
7/14/25
7/21/25
MTG. DATE ATTACHMENTS
7/14/25 Informational Memorandum dated 06/23/25
Draft Ordinance - Telecom Franchise Agreement with Hyper Fiber
Hyper Fiber Franchise Application
Minutes from the 06/23/25 TIS Committee Meeting (distributed separately)
7/21/25
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
7/14/25 ESC
7/21/25 ESC 5.C.
39
City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: City Council, Committee of the Whole
FROM: Joel Bush, Chief Information Officer
BY: Eric Compton, Franchise Analyst
CC: Thomas McLeod
DATE: 06/23/2025
SUBJECT: Franchise Agreement with Hyper Fiber
ISSUE
Approve an ordinance granting Hyper Fiber a new Franchise Agreement with a term of five (5)
years.
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.
DISCUSSION
Hyper Fiber provides home internet services in multiple western States and is looking to expand
their network into Tukwila residential neighborhoods.
FINANCIAL IMPACT
Under the terms of the Franchise, Hyper Fiber is required to pay the City a $5,000.00
administrative fee.
RECOMMENDATION
Council is being asked to approve the Ordinance granting Hyper Fiber a Franchise Agreement
and consider this item on the July 14, 2025, Committee of the Whole and forward to Consent
Agenda at the July 21, 2025, Regular Meeting.
ATTACHMENTS
A. Draft Ordinance - Telecom Franchise Agreement with Hyper Fiber
B. Hyper Fiber Franchise Application
40
2025 Legislation: HyperFiber Franchise Agreement Page 1 of 3
Version: 06/12/2025
Staff: E. Compton
DRAFT
AN ORDINANCE OF THE CITY OF TUKWILA,
WASHINGTON, GRANTING TO HYPER FIBER, AND ITS
AFFILIATES, SUCCESSORS AND ASSIGNS, THE RIGHT,
PRIVILEGE, AUTHORITY AND NONEXCLUSIVE
FRANCHISE FOR FIVE YEARS, TO CONSTRUCT,
MAINTAIN, OPERATE, REPLACE AND REPAIR A
BROADBAND SERVICESFIBER OPTIC BROADBAND
SERVICES NETWORK, IN, ACROSS, OVER, ALONG,
UNDER, THROUGH AND BELOW CERTAIN DESIGNATED
PUBLIC RIGHTS-OF-WAY OF THE CITY OF TUKWILA,
WASHINGTON.
WHEREAS, Hyper Fiber (“Franchisee”) doing business in the State of Washington
as Hyper Fiber, has applied for a non-exclusive telecommunications franchise to
construct, operate, and maintain telecommunications facilities upon, in, under, across,
along, and over certain City roads; and
WHEREAS, the Parties desire to execute a new nonexclusive franchise (this
“Franchise”) for purposes of operating and maintaining a telecommunications network;
and
WHEREAS, the City Council has the authority to grant franchises for the use of its
streets and other public properties pursuant to RCW 35A.47.040; and
WHEREAS, the City is willing to grant the rights requested by Franchisee for a
telecommunications franchise subject to certain terms and conditions, which are
acceptable to both parties.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Franchise Granted. The City Council hereby grants to Franchisee,
subject to the conditions prescribed in the agreement attached and incorporated herein
as Attachment A, the franchise right and authority to construct, replace, repair, monitor,
Attachment A
41
2025 Legislation: HyperFiber Franchise Agreement Page 2 of 3
Version: 06/12/2025
Staff: E. Compton
maintain, use and operate the equipment and facilities necessary for broadband and other
service. The term of the franchise shall be for five (5) years, commencing on the date the
last party executes the franchise.
Section 2. Terms & Conditions. The terms and conditions governing the franchise
specified in Section 1 shall be those set forth on Attachment A to this Ordinance and
incorporated herein by this reference as if set forth in full.
Section 3. Deadline for Acceptance. The rights and privileges granted pursuant to
this Ordinance shall not become effective until its terms and conditions are accepted by
Hyper Fiber. Such acceptance shall contain any required letter of credit, evidence of
insurance, all applicable fees pursuant to Section 14 of the Franchise, and shall be filed
with the City Clerk within sixty (60) days after the effective date of this Ordinance. Such
instrument shall conform substantially to Attachment B, and evidence the unconditional
acceptance of the terms hereof and a promise to comply with and abide by the provisions,
terms and conditions hereof.
Section 4. Corrections by City Clerk Authorized. The City Clerk 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, sentence, clause or phrase of this ordinance
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of any other
section, sentence, clause or phrase of this Ordinance.
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. This Ordinance, being an exercise of
a power specifically delegated to the City legislative body, is not subject to referendum.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this ____ day of _______, 2025.
[signatures to follow]
42
2025 Legislation: HyperFiber Franchise Agreement Page 3 of 3
Version: 06/12/2025
Staff: E. Compton
ATTEST/AUTHENTICATED:
Andy Youn-Barnett, CMC, City Clerk Thomas McLeod, Mayor
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
Attachment A: Telecommunication Franchise with Hyper Fiber
Attachment B: Statement of Acceptance with Hyper Fiber
ATTACHMENT A
[See attached.]
43
Hyper Fiber Franchise Agreement Page 1 of 37
BROADBAND SERVICES NETWORK FRANCHISE
Between
CITY OF TUKWILA, WASHINGTON
and
HYPER FIBER
This Broadband Services Network Franchise is entered into by and between the City of Tukwila,
Washington a municipal corporation, hereinafter (“the City”) and Hyper Fiber who is hereinafter
known as (“Hyper Fiber” or “Franchisee”). The City and Franchisee are sometimes referred to
hereinafter collectively as the “parties.”
Section 1. Franchise Granted.
Section 1.1. Pursuant to RCW 35A.47.040, the City hereby grants to Hyper Fiber a non-
exclusive franchise (the “Franchise”) under the terms and conditions contained in this franchise
ordinance (the “Franchise Ordinance”).
Section 1.2. This Franchise grants Franchisee the right, privilege, and authority to
construct, operate, maintain, replace, acquire, sell, lease and use all necessary Facilities for a fiber
optic broadband services network (“Network”), in, under, on, across, over, through, along or below
the public Rights-of-Ways located in the City of Tukwila, as approved pursuant to City permits
issued pursuant to this Franchise and in accordance with all applicable federal, state, and local
codes.
(a) “Facilities” as used in this Franchise means one or more elements of Franchisee’s
Network, with all necessary cables, wires, conduits, ducts, pedestals, antennas, electronics,
and other necessary appurtenances; provided that placement by Franchisee of new utility
poles is specifically excluded unless otherwise specifically approved by the City.
Equipment enclosures with air conditioning or other noise generating equipment are also
excluded from “Facilities,” to the extent such equipment is located in zoned residential
areas of the City. For the purposes of this Franchise the term Facilities excludes
“microcell” facilities, “minor facilities,” “small cell facilities,” all as defined by RCW
80.36.375, and “macrocell” facilities, including towers and new base stations and other
similar facilities (except for fiber optic cables) used for the provision of “personal wireless
services” as defined by RCW 80.36.375.
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Hyper Fiber Franchise Agreement Page 2 of 37
(b) Public “Rights-of-Way” means land acquired or dedicated to the public or that is
hereafter dedicated to the public and maintained under public authority, including, but not
limited to, public streets or roads, highways, avenues, lanes, alleys, bridges, sidewalks,
utility easements and similar public property located within the franchise area but does not
include: State highways; land dedicated for road, streets, highways not opened and not
improved for motor vehicle use by the public; structures including poles and conduits
located within the right-of-way; federally granted trust lands or forest board trust lands;
lands owned or managed by the State Parks and Recreation Commission; federally granted
railroad rights-of-way acquired under 43 USC § 912 and related provisions of federal law
that are not open for vehicular use; or leasehold or City-owned property to which the City
holds fee title or other title and which is utilized for park, utility or a governmental or
proprietary use (for example, buildings, other City-owned physical facilities, parks, poles,
conduits, fixtures, real property or property rights owned or leased by the City not reserved
for transportation purposes).
Section 2. Authority Limited to Occupation of the Public Rights-of-Way
Section 2.1. The authority granted pursuant to this Franchise is a limited authorization
to occupy and use the Rights-of-Way throughout the City (the “Franchise Area”). No right to
install any facility, infrastructure, wires, lines, cables, or other equipment, on any City property
other than a Right-of-Way, or upon private property without the owner’s consent, or upon any
public or privately owned utility poles or conduits is granted herein. Franchisee hereby represents
that it expects to provide the following services within the City: high speed data and fiber optic
broadband services, internet protocol-based services, internet access services, conduit and dark
fiber leasing, telephone, data transport and other telecommunications services and information
services (the “Services”). Nothing contained herein shall be construed to grant or convey any right,
title, or interest in the Rights-of-Way of the City to the Franchisee other than for the purpose of
providing the Services, nor to subordinate the primary use of the Right-of-Way as a public
thoroughfare. Franchisee may not offer Cable Services as defined in 47 U.S.C. § 522(6) or
personal wireless services, without obtaining a new franchise or an amendment to this Franchise
approved by the City Council.
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Hyper Fiber Franchise Agreement Page 3 of 37
Section 2.2. Notwithstanding the existence of this Franchise, the installation,
construction, maintenance, use, operation, replacement and removal by Franchisee of any one or
more Franchise Facilities will be subject to all applicable provisions of Title 11 TMC, including,
but not limited to, the City’s Infrastructure, Design, and Construction Standards, adopted by the
City’s Public Works Department of Public Works, the terms and conditions of City right-of-way
use permits issued pursuant to Title 11 TMC, the terms and conditions of City building permits
issued pursuant to Title 16 TMC, and all other applicable laws, rules and regulations.
Section 2.3. Franchisee shall have the right, without prior City approval, to offer or
provide capacity or bandwidth to its customers consistent with this Franchise, provided:
(a) Franchisee at all times retains exclusive ownership over its Network, Facilities and
Services and remains responsible for constructing, installing, and maintaining its Facilities
pursuant to the terms and conditions of this Franchise;
(b) Franchisee may not grant rights to any customer or lessee that are greater than any
rights Franchisee has pursuant to this Franchise, provided that leases or other commercial
arrangements for the use of the Facilities installed pursuant to this Franchise may extend
beyond the term of the Franchise;
(c) Such customer or lessee shall not be construed to be a third-party beneficiary under
this Franchise; and
(d) No such customer or lessee may use the Network or Services for any purpose not
authorized by this Franchise, unless such rights are otherwise granted by the City.
Section 3. Non-Exclusive Franchise.
Section 3.1. This Franchise is granted to the Franchisee upon the express condition and
understanding that it shall be a non-exclusive Franchise which shall not in any manner prevent or
hinder the City from granting to other parties, at other times and under such terms and conditions
as the City, in its sole discretion, may deem appropriate, other franchises or similar use rights in,
on, to, across, over, upon, along, under or through any Public Rights-of-Way. Additionally, this
Franchise shall in no way prevent, inhibit or prohibit the City from using any of the roads, Public
Rights-of-Way or other public properties covered or affected by this Franchise, nor shall this
Franchise affect the City’s jurisdiction, authority or power over any of them, in whole or in part.
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Hyper Fiber Franchise Agreement Page 4 of 37
The City expressly retains its power to make or perform any and all changes, relocations, repairs,
maintenance, establishments, improvements, dedications, or vacations of or to any of the roads,
Public Rights-of-Way or other public properties covered or affected by the Franchise as the City
may, in its sole and absolute discretion, deem fit, including the dedication, establishment,
maintenance and/or improvement of new Public Rights-of-Way, thoroughfares and other public
properties of every type and description.
Section 4. Term; Early Termination.
Section 4.1. The initial term of the Franchise shall be for a period of five (5) years (the
“Initial Term”), beginning on the Effective Date of the Franchise, and continuing until the date
that is one day prior to the fifth anniversary of the Effective Date (the “Initial Term Expiration
Date”), unless earlier terminated, revoked or modified pursuant to the provisions of this Franchise.
Section 4.2. The Franchise granted by this Franchise Ordinance shall automatically
renew on the fifth anniversary of the Effective Date with the same terms and conditions as set forth
in this Franchise, for one (1) additional five (5) year (the “Renewal Term,” and, together with the
Initial Term, the “Term”), unless either party provides one hundred twenty (120) days written
notice to the other party to request an amendment to the Franchise.
Section 5. Location of Facilities.
Section 5.1. Franchisee is maintaining a The Network, consisting of Facilities within the
City. Franchisee may locate its Facilities anywhere within the Franchise Area consistent with the
City’s Infrastructure, Design and Construction standards and the Tukwila Municipal Code and
subject to the City’s applicable permit requirements. Franchisee shall not commence any
construction or other similar work within a Public Right-of-Way until (i) a right-of-way use permit
authorizing such work has been issued by the City pursuant to Title 11 TMC for a site-specific
location or installation, including, but not limited to, relocations, and (ii) if required by Title 16
TMC, a building permit authorizing such work has been issued by the City.
Section 5.2. To the extent that any Rights-of-Way within the Franchise Area are part of
the state highway system (“State Highways”), are considered managed access by the City and are
governed by the provisions of Chapter 47.24 RCW and applicable Washington State Department
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Hyper Fiber Franchise Agreement Page 5 of 37
of Transportation (WSDOT) regulations, Franchisee shall comply fully with said requirements in
addition to local ordinances and other applicable regulations. Franchisee specifically agrees that:
(a) any pavement trenching and restoration performed by Franchisee within State
Highways shall meet or exceed applicable WSDOT requirements;
(b) any portion of a State Highway damaged or injured by Franchisee shall be restored,
repaired and/or replaced by Franchisee to a condition that meets or exceeds applicable
WSDOT requirements; and
(c) without prejudice to any right or privilege of the City, WSDOT is authorized to
enforce in an action brought in the name of the State of Washington any condition of this
Franchise with respect to any portion of a State Highway.
Section 6. Relocation of Facilities
Section 6.1. The Franchisee agrees and covenants that, upon reasonable notice, it will
promptly, at its sole cost and expense, protect, support, temporarily disconnect, relocate, or remove
from any Public Right-of-Way any portion of the Franchisee Facilities when so required by the
City due to any of the following reasons: (i) traffic conditions, (ii) public safety, (iii) dedications
of new rights-of-way and the establishment and/or improvement thereof, (iv) widening and/or
improvement of existing rights-of-way, (v) right-of-way vacations, (vi) freeway construction,
(vii) change or establishment of road grade, or (viii) the construction of any public improvement
or structure by any governmental agency acting in a governmental capacity; PROVIDED that the
Franchisee shall generally have the privilege to temporarily bypass, in the authorized portion of
the same Public Right-of-Way, upon approval by the Public Works Director, any Franchisee
Facilities required to be temporarily disconnected or removed. The provisions of this Section 6
apply to all Franchisee Facilities wheresoever situated within any Public Right-of-Way, regardless
of whether the Franchisee Facility at issue was originally placed in such location under the
authority of an easement or other property interest prior to the property becoming a Public Right-
of-Way. For the avoidance of doubt, such projects shall include any Right-of-Way improvement
project, even if the project entails, in part, related work funded and/or performed by or for a third
party, provided that such work is performed for the public benefit, and not primarily for the benefit
of a private entity, and shall not include, without limitation, any other improvements or repairs
undertaken by or for the sole benefit of third party private entities. Collectively all such projects
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Hyper Fiber Franchise Agreement Page 6 of 37
described in this Section 6.1 shall be considered a “Public Project”. Except as otherwise provided
by law, the costs and expenses associated with relocations or disconnections ordered pursuant to
this Section 6.1 shall be borne by Franchisee. Nothing contained within this Franchise shall limit
Franchisee’s ability to seek reimbursement for relocation costs when permitted by RCW
35.99.060.
Section 6.2. Upon the request of the City and in order to facilitate the design of City
improvements to Public Rights-of-Way, Franchisee agrees, at its sole cost and expense, to locate
and, if reasonably determined necessary by the City, to excavate and expose, at its sole cost and
expense, portions of the Franchisee Facilities for inspection so that the location of the facilities
may be taken into account in the Public Project design; PROVIDED, that Franchisee shall not be
required to excavate and expose the Franchisee Facilities for inspection unless Franchisee’s record
drawings and maps of the Franchisee Facilities submitted pursuant to Section 13 of this Franchise
are reasonably determined by the Public Works Director to be inadequate for the City’s planning
purposes. The decision to require relocation of any Franchisee Facilities in order to accommodate
Public Projects shall be made by the Public Works Director upon review of the location and
construction of the Franchisee Facilities at issue. Where the City incurs additional costs in
performing any maintenance, operation, or improvement of or to public facilities due to measures
taken by the City to avoid damaging or to otherwise accommodate one or more Franchisee
Facilities, Franchisee shall reimburse the City for the full amount of such additional costs promptly
upon receiving the City’s invoice for same.
Section 6.3. Any condition or requirement imposed by the City upon any person or entity
(including, without limitation, any condition or requirement imposed pursuant to any contract or
in conjunction with approvals for permits for zoning, land use, construction or development) which
reasonably necessitates the relocation of any Franchisee Facilities shall constitute a required
relocation for purposes of this Section 6.
Section 6.4. If the City determines that the Public Project necessitates the relocation of
Franchisee’s Facilities, the City shall provide Franchisee in writing with a date by which the
relocation shall be completed (the “Relocation Date”) consistent with RCW 35.99.060(2). In
calculating the Relocation Date, the City shall consult with Franchisee and consider the extent of
facilities to be relocated, the services requirements, and the construction sequence for the
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relocation, within the City’s overall project construction sequence and constraints, to safely
complete the relocation, and the City shall endeavor to provide Franchisee at least sixty (60) days’
notice prior to the Relocation Date. Franchisee shall complete the relocation by the Relocation
Date, unless the City or a reviewing court establishes a later date for completion, as described in
RCW 35.99.060(2). To provide guidance on this notice process, the City will make reasonable
efforts to involve Franchisee in the predesign and design phases of any Public Project. After
receipt of the written notice containing the Relocation Date, Franchisee shall relocate such
facilities to accommodate the Public Project consistent with the timeline provided by the City and
at no charge or expense to the City. Such timeline may be extended by a mutual agreement.
Section 6.5. If Franchisee fails to complete this work within the time prescribed above
and to the City’s satisfaction, the City may cause such work to be done and bill the cost of the
work to Franchisee, including all costs and expenses incurred by the City due to Franchisee’s
delay. In such event, the City shall not be liable for any damage to any portion of Franchisee’s
Facilities. Within thirty (30) days of receipt of an itemized list of those costs, Franchisee shall pay
the City. In any event, if Franchisee fails to timely relocate, remove, replace, modify or disconnect
Franchisee’s facilities and equipment, and that delay results in any delay damage accrued by or
against the City, Franchisee will be liable for all documented costs of construction delays
attributable to Franchisee’s failure to timely act. Franchisee reserves the right to challenge any
determination by the City of costs for construction delays related to an alleged failure to act in
accordance with this Section 6.5.
Section 6.6. Franchisee will indemnify, defend, hold harmless, and pay the costs of
defending the City, in accordance with the provisions of Section 19 against any and all claims,
suits, actions, damages, or liabilities for delays on City construction projects caused by or arising
out of the failure of Franchisee to remove or relocate its Facilities in a timely manner; provided,
that Franchisee shall not be responsible for damages due to delays caused by circumstances beyond
the control of Franchisee or the negligence, willful misconduct, or unreasonable delay of the City
or any unrelated third party.
Section 6.7. In the event of an emergency posing a threat to public safety or welfare, or
in the event of an emergency beyond the control of the City which will result in severe financial
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consequences to the City, which necessitates the relocation of Franchisee’s Facilities, Franchisee
shall relocate its Facilities within the time period specified by the City.
Section 6.8. The provisions of this Section 6 shall in no manner preclude or restrict
Franchisee from making any arrangements it may deem appropriate when responding to a request
for relocation of its Facilities by any person or entity other than the City, where the facilities to be
constructed by said person or entity are not or will not become City-owned, operated, or
maintained facilities, provided that such arrangements do not unduly delay a City construction
project.
Section 6.9. Whenever any person shall have obtained permission from the City to use
any Right-of-Way for the purpose of moving any building, Franchisee, upon thirty (30) days’
written notice from the City, shall raise, remove, or relocate to another part of the Right-of-Way,
at the expense of the person desiring to move the building, any of Franchisee’s Facilities that may
obstruct the removal of such building.
Section 6.10. The provisions of this Section 6 shall survive the expiration, revocation,
abandonment or termination of this Franchise during such time as Franchisee continues to have
Facilities in the Rights-of-Way.
Section 7. Undergrounding of Facilities.
Section 7.1. Except as specifically authorized by permit of the City, Franchisee shall not
be permitted to erect poles. All Facilities shall be installed underground.Franchisee acknowledges
and agrees that if the City does not require the undergrounding of its Facilities at the time of permit
application, the City may, at any time in the future, require the conversion of Franchisee’s aerial
facilities to underground installation at Franchisee’s expense; provided that the City requires all
other wireline utilities, except electrical utilities, with aerial facilities in the area to convert such
facilities to underground installation at the same time. Unless otherwise permitted by the City,
Franchisee shall underground its Facilities in all new developments and subdivisions, and any
development or subdivision where all utilities, other than electrical utilities, are currently
underground.
Section 7.2. Whenever the City may require the undergrounding of existing aerial
utilities (other than electrical utilities and personal wireless services facilities) in any area of the
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City, Franchisee shall underground its aerial facilities in the manner specified by the City,
concurrently with and in the area of the other affected utilities. The location of any such relocated
and underground utilities shall be approved by the City. Where other utilities are present and
involved in the undergrounding project, Franchisee shall only be required to pay its fair share of
common costs borne by all utilities, in addition to the costs specifically attributable to the
undergrounding of Franchisee’s own Facilities. “Common costs” shall include necessary costs not
specifically attributable to the undergrounding of any particular facility, such as costs for common
trenching and utility vaults. “Fair share” shall be determined for a project on the basis of the
number and size of Franchisee’s Facilities being undergrounded in comparison to the total number
and size of all other utility facilities being undergrounded.
Section 7.3. To the extent Franchisee is providing Services to personal wireless services
facilities, Franchisee shall adhere to the design standards for such personal wireless services
facilities, and shall underground its Facilities and/or place its Facilities within the pole as may be
required by such design standards. For the purposes of clarity, this Section 7.3 does not require
undergrounding or interior placement of Facilities within the pole to the extent that the personal
wireless services facilities are located on utility poles that have pre-existing aerial wireline
facilities and provided such construction of Franchisee’s Facilities continue to comply with
Section 7.1 or Section 7.2.
Section 7.4. Franchisee shall not remove any underground cable or conduit that requires
trenching or other opening of the Rights-of-Way along the extension of cable to be removed,
except as provided in this Section 7.4. Franchisee may remove any underground cable and other
related facilities from the Right-of-Way that has been installed in such a manner that it can be
removed without trenching or other opening of the Right-of-Way along the extension of cable to
be removed, or if otherwise permitted by the City. Franchisee may remove any underground cable
from the Rights-of-Way where reasonably necessary to replace, upgrade, or enhance its Facilities,
or pursuant to Section 6. When the City determines, in the City’s sole discretion, that Franchisee’s
underground Facilities must be removed in order to eliminate or prevent a hazardous condition,
Franchisee shall remove the cable or conduit at Franchisee’s sole cost and expense. Franchisee
must apply and receive a permit, pursuant to Section 9, prior to any such removal of underground
cable, conduit and other related facilities from the Right-of-Way and must provide as-built plans
and maps pursuant to Section 13.1.
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Section 7.5. Both the City and Franchisee shall be entitled to reasonable access to open
utility trenches, provided that such access does not interfere with the other party’s placement of
utilities or increase such party’s actual costs. Franchisee shall pay to the City the actual cost to the
City resulting from providing Franchisee access to an open trench, including without limitation
the pro rata share of the costs to access the open trench and any costs associated with the delay of
the completion of a public works project. The City shall pay to the Franchisee the incremental
costs of providing such access to the open trench.
Section 7.6. The provisions of this Section 7 shall survive the expiration, revocation,
abandonment or termination of this Franchise. Nothing in this Section 7 shall be construed as
requiring the City to pay any costs of undergrounding any of the Franchisee’s Facilities.
Section 8. Emergency Work/Dangerous Conditions.
Section 8.1. In the event of any emergency in which any of Franchisee’s Facilities
located in or under any street endangers the property, life, health or safety of any person, or if
Franchisee’s construction area is otherwise in such a condition as to immediately endanger the
property, life, health or safety of any individual, Franchisee shall immediately take the proper
emergency measures to repair its Facilities, to cure or remedy the dangerous conditions for the
protection of property, life, health or safety of individuals without first applying for and obtaining
a permit as required by this Franchise. However, this shall not relieve Franchisee from the
requirement of obtaining any permits necessary for this purpose, and Franchisee shall apply for all
such permits not later than the next succeeding day during which the Tukwila City Hall is open
for business. The City retains the right and privilege to cut or move any Facilities located within
the Rights-of-Way of the City, in response to any public health or safety emergency.
Section 8.2. The City shall not be liable for any damage to or loss of Facilities within
the Rights-of-Way as a result of or in connection with any public works, public improvements,
construction, grading, excavation, filling, or work of any kind in the Rights-of-Way by or on behalf
of the City, except to the extent directly and proximately caused by sole negligence, intentional
misconduct or criminal actions of the City, its employees, contractors, or agents. The City shall
further not be liable to Franchisee for any direct, indirect, or any other such damages suffered by
any person or entity of any type as a direct or indirect result of the City’s actions under this Section
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8 except to the extent caused by the sole negligence, intentional misconduct or criminal actions of
the City, its employees, contractors, or agents.
Section 8.3. Whenever the construction, installation or excavation of Facilities
conducted by Franchisee as authorized by this Franchise has caused or materially contributed to a
condition that appears to substantially impair the lateral support of the adjoining street or public
place, or endangers the public, an adjoining public place, street utilities or City property, the Public
Works Director may direct Franchisee, at Franchisee’s own expense, to take reasonable action to
protect the public, adjacent public places, City property or street utilities, and such action may
include compliance within a prescribed time. In the event that Franchisee fails or refuses to
promptly take the actions directed by the City, or fails to fully comply with such directions, or if
emergency conditions exist which require immediate action, before the City can timely contact
Franchisee to request Franchisee effect the immediate repair, the City may enter upon the property
and take such reasonable actions as are necessary to protect the public, the adjacent streets, or
street utilities, or to maintain the lateral support thereof, or reasonable actions regarded as
necessary safety precautions, and Franchisee shall be liable to the City for the costs thereof.
Section 9. Work in the Rights-of-Way.
Section 9.1. During any period of relocation, construction or maintenance, all work
performed by Franchisee or its contractors shall be accomplished in a safe and workmanlike
manner, so to minimize interference with the free passage of traffic and the free use of adjoining
property, whether public or private. Franchisee shall at all times post and maintain proper
barricades, flags, flaggers, lights, flares and other measures as required for the safety of all
members of the general public and comply with all applicable safety regulations during such period
of construction as required by the ordinances of the City or the laws of the State of Washington,
including RCW 39.04.180 for the construction of trench safety systems.
Section 9.2. Whenever Franchisee shall commence work in any Rights-of-Way for the
purpose of excavation, installation, construction, repair, maintenance, or relocation of its cable or
equipment, it shall apply to the City for a permit to do so and, in addition, shall give the City at
least ten (10) working days prior notice (except in the case of an emergency) of its intent to
commence work in the Rights-of-Way. The City shall only issue permits that are in compliance
with the TMC and the City’s generally applicable design standards. During the progress of the
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work, the Franchisee shall not unnecessarily obstruct the passage or proper use of the Rights-of-
Way, and all work by the Franchisee in the area shall be performed in accordance with applicable
City standards and specifications. In no case shall any work commence within any Rights-of-Way
without a permit, except as otherwise provided in this Franchise.
Section 9.3. If the Franchisee shall at any time plan to make excavations in any area
covered by this Franchise and as described in this Section 9.3, the Franchisee shall afford the other,
upon receipt of a written request to do so, an opportunity to share such excavation, PROVIDED
THAT:
(a) Such joint use shall not unreasonably delay the work of the Franchisee causing the
excavation to be made;
(b) Such joint use shall be arranged and accomplished on terms and conditions
satisfactory to both parties; and
(c) Franchisee may deny such request for safety reasons.
Section 9.4. Except for emergency situations, Franchisee shall give at least seven (7)
days’ prior notice of intended construction to residents in the affected area prior to any
underground construction or disturbance. Such notice shall contain the dates, contact number,
nature and location of the work to be performed. At least twenty-four (24) hours prior to entering
private property or streets or public easements adjacent to or on such private property, Franchisee
shall physically post a notice on the property indicating the nature and location of the work to be
performed. Door hangers are permissible methods of notifications to residents. Franchisee shall
make a good faith effort to comply with the property owner/resident’s preferences, if any, on
location or placement of underground installations (excluding aerial cable lines utilizing existing
poles and existing cable paths), consistent with sound engineering practices. Following
performance of the work, Franchisee shall restore the private property as nearly as possible to its
condition prior to construction, except for any change in condition not caused by Franchisee. Any
disturbance of landscaping, fencing, or other improvements on private property caused by
Franchisee’s work shall, at the sole expense of Franchisee, be promptly repaired and restored to
the reasonable satisfaction of the property owner/resident. Notwithstanding the above, nothing
herein shall give Franchisee the right to enter onto private property without the permission of such
private property owner, or as otherwise authorized by applicable law.
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Section 9.5. Upon receipt of a permit (except in emergency situations), Franchisee may
trim trees upon and overhanging on public ways, streets, alleys, sidewalks, and other public places
of the City so as to prevent the branches of such trees from coming in contact with Franchisee’s
Facilities. The right to trim trees in this Section 9.5 shall only apply to the extent necessary to
protect above ground Facilities. Franchisee’s tree trimming activities shall protect the appearance,
integrity, and health of the trees to the extent reasonably possible. Franchisee shall be responsible
for all debris removal from such activities. All trimming shall be at the expense of Franchisee.
Franchisee may contract for such services, however, any firm or individual so retained must first
receive City approval prior to commencing such trimming. Nothing herein grants Franchisee any
authority to act on behalf of the City, to enter upon any private property, or to trim any tree or
natural growth not owned by the City except to the extent it is necessary that Franchisee trims trees
or vegetation upon, overhanging, or encroaching on public ways, streets, alleys, sidewalks, and
other public places of the City so as to prevent such vegetation from coming in contact with
Franchisee’s Facilities. Franchisee shall be solely responsible and liable for any damage to any
third parties’ trees or natural growth caused by Franchisee’s actions. Franchisee shall indemnify,
defend and hold harmless the City from third-party claims of any nature arising out of any act or
negligence of Franchisee with regard to tree and/or natural growth trimming, damage, and/or
removal. Franchisee shall reasonably compensate the City or the property owner for any damage
caused by trimming, damage, or removal by Franchisee. Except in an emergency situation, all tree
trimming must be performed under the direction of an arborist certified by the International Society
of Arboriculture, unless otherwise approved by the Public Works Director or designee.
Section 9.6. Franchisee shall meet with the City and other franchise holders and users of
the Rights-of-Way upon written notice as determined by the City, to schedule and coordinate
construction in the Rights-of-Way. All construction locations, activities, and schedules shall be
coordinated, as ordered by the City to minimize public inconvenience, disruption or damages.
Section 9.7. Franchisee shall inform the City with at least thirty (30) days’ advance
written notice that it is constructing, relocating, or placing ducts or conduits in the Rights-of-Way
and provide the City with an opportunity to request that Franchisee provide the City with additional
duct or conduit and related structures necessary to access the conduit pursuant to RCW 35.99.070.
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Section 9.8. Prior to doing any work in the Rights-of-Way, the Franchisee shall follow
established procedures, including contacting the Utility Notification Center in Washington and
comply with all applicable State statutes regarding the One Call Locator Service pursuant to
Chapter 19.122 RCW. Further, upon request from a third party or the City, Franchisee shall locate
its Facilities consistent with the requirements of Chapter 19.122 RCW. The City shall not be liable
for any damages to Franchisee’s Facilities or for interruptions in service to Franchisee’s customers
that are a direct result of Franchisee’s failure to locate its Facilities within the prescribed time
limits and guidelines established by the One Call Locator Service regardless of whether the City
issued a permit.
Section 9.9. The provisions of this Section 9 shall survive the expiration, revocation,
abandonment, or termination of this Franchise.
Section 10. Restoration.
Section 10.1. Franchisee shall, after installation, construction, relocation, maintenance, or
repair of its Facilities, or after abandonment approved pursuant to Section 22, promptly remove
any obstructions from the Rights-of-Way and restore the surface of the Rights-of-Way to at least
the same condition the Rights-of-Way were in immediately prior to any such installation,
construction, relocation, maintenance or repair, provided Franchisee shall not be responsible for
any changes to the Rights-of-Way not caused by Franchisee. The Public Works Director or
designee shall have final approval of the condition of such Rights-of-Way after restoration. All
concrete encased survey monuments that have been disturbed or displaced by such work shall be
restored pursuant to federal, state (such as Chapter 332-120 WAC), and local standards and
specifications.
Section 10.2. Franchisee agrees to promptly complete all restoration work and to
promptly repair any damage caused by work to the Franchise Area or other affected area at its sole
cost and expense and according to the time and terms specified in the construction permit issued
by the City. All work by Franchisee pursuant to this Franchise shall be performed in accordance
with applicable City standards.
Section 10.3. If conditions (e.g. weather) make the complete restoration required under
Section 10 impracticable, Franchisee shall temporarily restore the affected Right-of-Way or
property. Such temporary restoration shall be at Franchisee’s sole cost and expense. Franchisee
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shall promptly undertake and complete the required permanent restoration when conditions no
longer make such permanent restoration impracticable.
Section 10.4. In the event Franchisee does not repair a Right-of-Way or an improvement
in or to a Right-of-Way within the time reasonably directed to by the Public Works Director, or
his/her designee, the City may repair the damage and shall be reimbursed its actual cost within
sixty (60) days of submitting an invoice to Franchisee in accordance with the provisions of Section
14.3 and Section 14.4. In addition, and pursuant to Section 14.3 and Section 14.4, the City may
bill Franchisee for expenses associated with the inspection of such restoration work. The failure
by Franchisee to complete such repairs shall be considered a breach of this Franchise and is subject
to remedies by the City including the imposition of damages consistent with Section 24.
Section 10.5. The provisions of this Section 10 shall survive the expiration, revocation,
abandonment, or termination of this Franchise.
Section 11. Safety Requirements.
Section 11.1. Franchisee shall, at all times, employ professional care and shall install and
maintain and use industry-standard methods for preventing failures and accidents that are likely to
cause damage, injuries, or nuisances to the public. All structures and all lines, equipment, and
connections in, over, under, and upon the Rights-of-Ways, wherever situated or located, shall at
all times be kept and maintained in a safe condition. Franchisee shall comply with all federal,
State, and City safety requirements, rules, regulations, laws, and practices, and employ all
necessary devices as required by applicable law during the construction, operation, maintenance,
upgrade, repair, or removal of its Facilities. By way of illustration and not limitation, Franchisee
shall also comply with the applicable provisions of the National Electric Code, National Electrical
Safety Code, FCC regulations, and Occupational Safety and Health Administration (OSHA)
Standards. Upon reasonable notice to Franchisee, the City reserves the general right to inspect the
Facilities to evaluate if they are constructed and maintained in a safe condition.
Section 11.2. If an unsafe condition or a violation of Section 11.1 is found to exist, and
becomes known to the City, the City agrees to give Franchisee written notice of such condition
and afford Franchisee a reasonable opportunity to repair the same. If Franchisee fails to start to
make the necessary repairs and alterations within the time frame specified in such notice (and
pursue such cure to completion), then the City may make such repairs or contract for them to be
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made. All costs, including administrative costs, incurred by the City in repairing any unsafe
conditions shall be borne by Franchisee and reimbursed to the City pursuant to Section 14.3 and
Section 14.4.
Section 11.3. Additional safety standards include:
(a) Franchisee shall endeavor to maintain all equipment lines and facilities in an
orderly manner, including, but not limited to, the removal of all bundles of unused cable
on any aerial facilities.
(b) All installations of equipment, lines, and ancillary facilities shall be installed in
accordance with industry-standard engineering practices and shall comply with all federal,
State, and local regulations, ordinances, and laws.
(c) Any opening or obstruction in the Rights-of-Way or other public places made by
Franchisee in the course of its operations shall be protected by Franchisee at all times by
the placement of adequate barriers, fences, or boarding, the bounds of which, during
periods of dusk and darkness, shall be clearly marked and visible.
Section 11.4. Stop Work Order. On notice from the City that any work is being performed
contrary to the provisions of this Franchise, or in an unsafe or dangerous manner as determined by
the City, or in violation of the terms of any applicable permit, laws, regulations, ordinances, or
standards, the work may immediately be stopped by the City. The stop work order shall:
(a) Be in writing;
(b) Be given to the person doing the work or posted on the work site;
(c) Be sent to Franchisee by overnight delivery;
(d) Indicate the nature of the alleged violation or unsafe condition; and
(e) Establish conditions, consistent with the applicable laws, regulations, ordinances or
generally applicable standards under which work may be resumed.
Section 12. Work of Contractors and Subcontractors.
Section 12.1. Franchisee’s contractors and subcontractors shall be licensed and bonded in
accordance with State law and the City’s ordinances, regulations, and requirements. Work by
contractors and subcontractors are subject to the same restrictions, limitations, and conditions as
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if the work were performed by Franchisee. Franchisee shall be responsible for all work performed
by its contractors and subcontractors and others performing work on its behalf as if the work were
performed by Franchisee and shall ensure that all such work is performed in compliance with this
Franchise and applicable law.
Section 13. Maps and Records.
Section 13.1. The Franchisee agrees and covenants that it shall, within 10 days of
substantial completion of any construction project involving a Public Right-of-Way, provide to the
City, at no cost to the City, accurate copies of as-built plans and maps stamped and signed by a
professional land surveyor or engineer in a form and content acceptable to the Public Works
Director or designee.
Section 13.2. Within thirty (30) days of a written request from the Public Works Director,
the Franchisee shall furnish the City with information sufficient to demonstrate: (1) that the
Franchisee has complied with all applicable requirements of this Franchise; and (2) that all taxes,
including but not limited to sales, utility and/or telecommunications taxes, due the City in
connection with the Franchisee’s services and Facilities provided by the Franchisee have been
properly collected and paid by the Franchisee.
Section 13.3. Books, records, maps, and other documents maintained by Franchisee with
respect to its Facilities within the Rights-of-Way and which are reasonably necessary to
demonstrate compliance with the terms of this Franchise, shall, after reasonable prior notice from
the City, be made available for inspection by the City at reasonable times and intervals but no more
than one time each calendar year or upon the City’s reasonable belief that there has been a violation
of this Franchise by Franchisee; provided, however, that nothing in this Section 13.3 shall be
construed to require Franchisee to violate state or federal law regarding customer privacy, nor shall
this Section 13.3 be construed to require Franchisee to disclose proprietary or confidential
information without adequate safeguards for its confidential or proprietary nature. Unless
otherwise permitted or required by State or federal law, nothing in this Section 13.3 shall be
construed as permission to withhold relevant customer data from the City that the City requests in
conjunction with a tax audit or review; provided, however, Franchisee may redact identifying
information such as names, street addresses (excluding City and zip code), Social Security
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Numbers, or Employer Identification Numbers related to any confidentiality agreements
Franchisee has with third parties.
Section 13.4. Franchisee shall not be required to disclose information that it reasonably
deems to be proprietary or confidential in nature; provided, however, Franchisee shall disclose
such information to comply with a utility tax audit, or in the event the City is permitted to charge
franchise fees as further described in Section 15.1, or as otherwise required in this Franchise.
Franchisee shall be responsible for clearly and conspicuously identifying the work as confidential,
trade secret, or proprietary, and shall provide a brief written explanation as to why such
information is confidential and how it may be treated as such under State or federal law. In the
event that the City receives a public records request under Chapter 42.56 RCW or similar law for
the disclosure of information Franchisee has designated as confidential, trade secret, or proprietary,
the City shall promptly provide written notice of such disclosure so that Franchisee may take
appropriate steps to protect its interests. Nothing in this Section 13.4 prohibits the City from
complying with Chapter 42.56 RCW or any other applicable law or court order requiring the
release of public records, and the City shall not be liable to Franchisee for compliance with any
law or court order requiring the release of public records. The City shall comply with any
injunction or court order obtained by Franchisee that prohibits the disclosure of any such
confidential records; however, in the event a higher court overturns such injunction or court order
and such higher court action is or has become final and non-appealable, Franchisee shall reimburse
the City for any fines or penalties imposed for failure to disclose such records as required hereunder
within sixty (60) days of a request from the City.
Section 13.5. On an annual basis, upon thirty (30) days prior written notice, the City shall
have the right to conduct an independent audit of Franchisee's records reasonably related to the
administration or enforcement of this Franchise and the collection of utility taxes, in accordance
with GAAP. If the audit shows that tax payments have been underpaid by three percent (3%) or
more, Franchisee shall pay the total cost of the audit.
Section 14. Costs and Fees.
Section 14.1. Franchisee shall pay a one-time fee for the actual administrative expenses
incurred by the City that are directly related to the receiving and approving this Franchise pursuant
to RCW 35.21.860, including the costs associated with the City’s legal costs incurred in drafting
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and processing this Franchise, not to exceed $5,000. No construction permits shall be issued for
the installation of Facilities authorized until such time as the City has received payment of this fee;
further, this Franchise shall be considered void if the fee is not paid within ninety (90) days of
receipt of the invoice. Franchisee shall further be subject to all permit fees associated with
activities undertaken through the authority granted in this Franchise or under the laws of the City.
Where the City incurs documented and reasonable costs and expenses for review, inspection, or
supervision of activities, including but not limited to documented and reasonable fees associated
with attorneys, consultants, City Staff and City Attorney time, undertaken through the authority
granted in this Franchise or any ordinances relating to the subject for which a permit fee is not
established, Franchisee shall pay such costs and expenses directly to the City in accordance with
the provisions of Section 14.3. For avoidance of doubt, the term “documented” shall mean
described in an itemized invoice or similar document so as to specifically identify the costs,
expenses or fee.
Section 14.2. In addition to Section 14.1, Franchisee shall promptly reimburse the City in
accordance with the provisions of Section 14.3 and Section 14.4 for any and all costs the City
reasonably incurs in response to any emergency situation involving Franchisee’s Facilities, to the
extent said emergency is not the fault of the City.
Section 14.3. Consistent with state law, Franchisee shall reimburse the City within sixty
(60) days of submittal by the City of an itemized billing for reasonably incurred costs, itemized by
project, for Franchisee’s proportionate share of all actual, identified expenses incurred by the City
in planning, constructing, installing, repairing, altering, or maintaining any City facility as the
result of the presence of Franchisee’s Facilities in the Right-of-Way. Such costs and expenses
shall include but not be limited to Franchisee’s proportionate cost of City personnel assigned to
oversee or engage in any work in the Right-of-Way as the result of the presence of Franchisee’s
Facilities in the Right-of-Way. Such costs and expenses shall also include Franchisee’s
proportionate share of any time spent reviewing construction plans in order to either accomplish
the relocation of Franchisee’s Facilities or the routing or rerouting of any utilities so as not to
interfere with Franchisee’s Facilities.
Section 14.4. The time of City employees shall be charged at their respective rate of
salary, including overtime if applicable, plus benefits and reasonable overhead. Any other costs
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will be billed proportionately on an actual cost basis. All billings will be itemized so as to
specifically identify the costs and expenses for each project for which the City claims
reimbursement. A charge for the actual costs incurred in preparing the billing may also be included
in said billing. Billing will be made on a monthly basis.
Section 15. City’s Reservation of Rights
Section 15.1. Franchisee hereby represents that its operations as authorized under this
Franchise are those of a telephone business as defined in RCW 82.16.010, or service provider as
defined in RCW 35.21.860. As a result, the City will not impose a Franchise fee under the terms
of this Franchise, other than as described herein. The City hereby reserves its right to impose a
Franchise fee on Franchisee if Franchisee’s operations as authorized by this Franchise change such
that the statutory prohibitions of RCW 35.21.860 no longer apply or, if statutory prohibitions on
the imposition of such fees are removed. In either instance, the City also reserves its right to
require that Franchisee obtain a separate Franchise for its change in use. Nothing contained herein
shall preclude Franchisee from challenging any such new fee or separate agreement under
applicable federal, State, or local laws.
Section 15.2. Franchisee acknowledges that its operation with the City constitutes a
telecommunications business subject to the utility tax imposed pursuant to the TMC Chapter 3.50.
Franchisee stipulates and agrees that certain of its business activities are subject to taxation as a
telephone business and that Franchisee shall pay to the City the rate applicable to such taxable
services under TMC Chapter 3.50, and consistent with state and federal law. The parties agree
however, that nothing in this Franchise shall limit the City's power of taxation as may exist now
or as later imposed by the City. This provision does not limit the City's power to amend TMC
Chapter 3.50 as may be permitted by law. Nothing in this Franchise is intended to alter, amend,
modify or expand the taxes and fees that may be lawfully assessed on Franchisee’s Services.
Section 16. Police Powers and City Ordinances.
Section 16.1. Nothing in this Franchise Ordinance shall be deemed to restrict the City’s
ability to adopt and enforce all necessary and appropriate ordinances regulating the performance
of the conditions of the Franchise granted by this Franchise Ordinance, including, but not limited
to, any valid ordinance made in the exercise of the City’s police powers in the interest of public
safety and for the welfare of the public. The City shall have the authority at all times to control by
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appropriate regulations, including design standards and utility accommodation policies, the
location, elevation, manner of construction, and maintenance of any Franchisee Facilities located
within any Public Right-of-Way or affecting any Public Right-of-Way, and the Franchisee shall
promptly conform with all such regulations, unless compliance would cause the Franchisee to
violate other requirements of law. In the event of a conflict between the regulatory provisions of
this Franchise Ordinance and any other ordinance(s) enacted under the City’s police power
authority, such other ordinance(s) shall take precedence over the regulatory provisions set forth
herein.
Section 17. Limitation of City’s Liability.
Section 17.1. Administration by the City of the Franchise granted by this Franchise
Ordinance shall not be construed to create the basis for any liability to any third party on the part
of the City, its elected and appointed officials, officers, employees, and agents for any injury or
damage from the failure of the Franchisee to comply with the provisions of this Franchise
Ordinance; by reason of any plan, schedule or specification review, inspection, notice and order,
permission, or other approval or consent by the City; for any action or inaction thereof authorized
or done in connection with the implementation or enforcement of the Franchise by the City; or for
the accuracy of plans submitted to the City.
Section 18. Compliance with All Applicable Laws.
Section 18.1. Each party agrees to comply with all present and future federal, state and
local laws, ordinances, rules and regulations. Neither the City nor Franchisee waive any rights
they may have under any such laws, rules or regulations. This Franchise is subject to ordinances
of general applicability enacted pursuant to the City’s police powers. Franchisee further agrees to
remove all liens and encumbrances arising as a result of said use or work. Franchisee shall, at its
own expense, maintain its Facilities in a safe condition, in good repair and in a manner reasonably
suitable to the City. Additionally, Franchisee shall keep its Facilities free of debris and anything
of a dangerous, noxious or offensive nature or which would create a hazard or undue vibration,
heat, noise or any interference with City services. City reserves the right at any time to amend this
Franchise to conform to any hereafter enacted, amended, or adopted federal or state statute or
regulation relating to the public health, safety, and welfare, or relating to roadway regulation, or a
City ordinance enacted pursuant to such federal or state statute or regulation when such statute,
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regulation, or ordinance necessitates this Franchise be amended in order to remain in compliance
with applicable laws, but only upon providing Franchisee with thirty (30) days written notice of
its action setting forth the full text of the amendment and identifying the statute, regulation, or
ordinance requiring the amendment. Said amendment shall become automatically effective upon
expiration of the notice period unless, before expiration of that period, Franchisee makes a written
request for negotiations over the terms of the amendment. If the parties do not reach agreement as
to the terms of the amendment within thirty (30) days of the call for negotiations, either party may
pursue any available remedies at law or in equity.
Section 19. Indemnification
Section 19.1. Franchisee releases, covenants not to bring suit, and agrees to indemnify,
defend, and hold harmless the City, its officers, agents, employees, volunteers, elected and
appointed officials, and contractors from any and all claims, costs, judgments, awards, or liability
to any person, for injury or death of any person, or damage to property caused by or arising out of
any acts or omissions of Franchisee, its agents, servants, officers, or employees in the performance
of this Franchise and any rights granted within this Franchise.
Section 19.2. Inspection or acceptance by the City of any work performed by Franchisee
at the time of completion of construction shall not be grounds for avoidance by Franchisee of any
of its obligations under this Section 19. These indemnification obligations shall extend to claims
that are not reduced to a suit and any claims that may be compromised, with Franchisee’s prior
written consent, prior to the culmination of any litigation or the institution of any litigation.
Section 19.3. The City shall promptly notify Franchisee of any claim or suit and request
in writing that Franchisee indemnify the City. Franchisee may choose counsel to defend the City
subject to this Section 19.3. City’s failure to so notify and request indemnification shall not relieve
Franchisee of any liability that Franchisee might have, except to the extent that such failure
prejudices Franchisee’s ability to defend such claim or suit. In the event that Franchisee refuses
the tender of defense in any suit or any claim, as required pursuant to the indemnification
provisions within this Franchise, and said refusal is subsequently determined by a court having
jurisdiction (or such other tribunal that the parties shall agree to decide the matter), to have been a
wrongful refusal on the part of Franchisee, Franchisee shall pay all of the City’s reasonable costs
for defense of the action, including all expert witness fees, costs, and attorney’s fees, and including
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costs and fees incurred in recovering under this indemnification provision. If separate
representation to fully protect the interests of both parties is necessary, such as a conflict of interest
between the City and the counsel selected by Franchisee to represent the City, then upon the prior
written approval and consent of Franchisee, which shall not be unreasonably withheld, the City
shall have the right to employ separate counsel in any action or proceeding and to participate in
the investigation and defense thereof, and Franchisee shall pay the reasonable fees and expenses
of such separate counsel, except that Franchisee shall not be required to pay the fees and expenses
of separate counsel on behalf of the City for the City to bring or pursue any counterclaims or
interpleader action, equitable relief, restraining order or injunction. The City’s fees and expenses
shall include all out-of-pocket expenses, such as consultants and expert witness fees, and shall also
include the reasonable value of any services rendered by the counsel retained by the City but shall
not include outside attorneys’ fees for services that are unnecessarily duplicative of services
provided the City by Franchisee. Each party agrees to cooperate and to cause its employees and
agents to cooperate with the other party in the defense of any such claim and the relevant records
of each party shall be available to the other party with respect to any such defense.
Section 19.4. The parties acknowledge that this Franchise may be subject to RCW
4.24.115. Accordingly, in the event of liability for damages arising out of bodily injury to persons
or damages to property caused by or resulting from the concurrent negligence of Franchisee and
the City, its officers, officials, employees, and volunteers, Franchisee’s liability shall be only to
the extent of Franchisee’s negligence. It is further specifically and expressly understood that the
indemnification provided constitutes Franchisee’s waiver of immunity under Title 51 RCW, solely
for the purposes of this indemnification. This waiver has been mutually negotiated by the parties.
Section 19.5. Notwithstanding any other provisions of this Section 19, Franchisee
assumes the risk of damage to its Facilities located in the Rights-of-Way and upon City-owned
property from activities conducted by the City, its officers, agents, employees, volunteers, elected
and appointed officials, and contractors, except to the extent any such damage or destruction is
caused by or arises from any sole negligence, intentional misconduct or criminal actions on the
part of the City, its officers, agents, employees, volunteers, or elected or appointed officials, or
contractors. In no event shall the City be liable for any indirect, incidental, special, consequential,
exemplary, or punitive damages, including by way of example and not limitation lost profits, lost
revenue, loss of goodwill, or loss of business opportunity in connection with its performance or
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failure to perform under this Franchise. Franchisee releases and waives any and all such claims
against the City, its officers, agents, employees, volunteers, or elected or appointed officials, or
contractors. Franchisee further agrees to indemnify, hold harmless and defend the City against
any claims for damages, including, but not limited to, business interruption damages, lost profits
and consequential damages, brought by or under users of Franchisee’s Facilities as the result of
any interruption of service due to damage or destruction of Franchisee’s Facilities caused by or
arising out of activities conducted by the City, its officers, agents, employees or contractors except
to the extent any such damage or destruction is caused by or arises from the sole negligence or
intentional misconduct, or criminal actions on the part of the City, its officers, agents, employees,
volunteers, or elected or appointed officials, or contractors.
Section 19.6. The provisions of this Section 19 shall survive the expiration, revocation,
termination, or abandonment of this Franchise.
Section 20. Insurance.
Section 20.1. Franchisee shall procure and maintain for the duration of the Franchise and
as long as Franchisee has Facilities in the rights-of-way, insurance against claims for injuries to
persons or damage to property which may arise from or in connection with the Franchise and use
of the rights-of-way.
(a) No Limitation. Franchisee’s maintenance of insurance as required by the
Franchise shall not be construed to limit the liability of Franchisee to the coverage provided by
such insurance, or otherwise limit the City’s recourse to any remedy available at law or in equity.
(b) Minimum Scope of Insurance. Franchisee shall obtain insurance of the
types and coverage described below:
(i) Commercial General Liability insurance shall be at least as broad
as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations,
stop gap liability, independent contractors, products-completed operations, personal injury and
advertising injury, and liability assumed under an insured contract. There shall be no exclusion
for liability arising from explosion, collapse or underground property damage. The City shall be
named as an additional insured under Franchisee’s Commercial General Liability insurance
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policy with respect this Franchise using ISO endorsement CG 20 12 05 09 or CG 20 26 07 04,
or substitute endorsement providing at least as broad coverage.
(ii)Automobile Liability insurance covering all owned, non-owned,
hired and leased vehicles. Coverage shall be at least as broad as Insurance Services Office (ISO)
form CA 00 01.
(iii) Contractors Pollution Liability insurance shall be in effect
throughout the entire Franchise covering losses caused by pollution conditions that arise from the
operations of Franchisee. Contractors Pollution Liability shall cover bodily injury, property
damage, cleanup costs and defense, including costs and expenses incurred in the investigation,
defense, or settlement of claims.
(iv)Workers’ Compensation coverage as required by the Industrial
Insurance laws of the State of Washington.
(v)Excess or Umbrella Liability insurance shall be excess over and at
least as broad in coverage as Franchisee’s Commercial General Liability and Automobile
Liability insurance. The City shall be named as an additional insured on the Contractor’s Excess
or Umbrella Liability insurance policy.
(c)Minimum Amounts of Insurance. Franchisee shall maintain the following
insurance limits:
(i) Commercial General Liability insurance shall be written with
limits no less than $5,000,000 each occurrence, $5,000,000 general aggregate.
(ii)Automobile Liability insurance with a minimum combined single
limit for bodily injury and property damage of $5,000,000 per accident.
(iii) Contractors Pollution Liability insurance shall be written in an
amount of at least $2,000,000 per loss, with an annual aggregate of at least $2,000,000.
(iv) Excess or Umbrella Liability insurance shall be written with limits
of not less than $5,000,000 per occurrence and annual aggregate. The Excess or Umbrella
Liability requirement and limits may be satisfied instead through Franchisee’s Commercial
General Liability and Automobile Liability insurance, or any combination thereof that achieves
the overall required limits.
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(d) Other Insurance Provisions. Franchisee’s Commercial General Liability,
Automobile Liability, Excess or Umbrella Liability, Contractors Pollution Liability insurance
policy or policies are to contain, or be endorsed to contain, that they shall be primary insurance as
respect the City. Any insurance, self-insurance, or self-insured pool coverage maintained by the
City shall be excess of Franchisee’s insurance and shall not contribute with it.
(e) Acceptability of Insurers. Insurance is to be placed with insurers with a
current A.M. Best rating of not less than A: VII.
(f) Verification of Coverage. Franchisee shall furnish the City with original
certificates and a copy of the amendatory endorsements, including but not necessarily limited to
the additional insured endorsement, evidencing the insurance requirements of the Franchise. Upon
request by the City, Franchisee shall furnish certified copies of all required insurance policies,
including endorsements, required in this Franchise and evidence of all subcontractors’ coverage.
(g) Subcontractors. Franchisee shall cause each and every Subcontractor
to provide insurance coverage that complies with all applicable requirements of Franchisee-
provided insurance as set forth herein, except Franchisee shall have sole responsibility for
determining the limits of coverage required to be obtained by Subcontractors. Franchisee shall
ensure that the City is an additional insured on each and every Subcontractor’s Commercial
General liability insurance policy using an endorsement as least as broad as ISO CG 2026.
(h) Notice of Cancellation. Franchisee shall provide the City with written
notice of any policy cancellation within two business days of their receipt of such notice.
(i) Failure to Maintain Insurance. Failure on the part of Franchisee to
maintain the insurance as required shall constitute a material breach of Franchise, upon which the
City may, after giving five business days’ notice to Franchisee to correct the breach, terminate the
Franchise or, at its discretion, procure or renew such insurance and pay any and all premiums in
connection therewith, with any sums so expended to be repaid to the City on demand.
(j) City Full Availability of Franchisee Limits. If Franchisee maintains
higher insurance limits than the minimums shown above, the City shall be insured for the full
available limits of Commercial General and Excess or Umbrella liability maintained by
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Franchisee, irrespective of whether such limits maintained by Franchisee are greater than those
required by this Franchise or whether any certificate of insurance furnished to the City evidences
limits of liability lower than those maintained by Franchisee.
(k) Franchisee – Self-Insurance. If Franchisee is self-insured or becomes
self-insured during the term of the Franchise, Franchisee or its affiliated parent entity shall comply
with the following: (i) provide the City, upon request, a copy of Franchisee’s or its parent
company’s most recent audited financial statements, if such financial statements are not otherwise
publicly available; (ii) Franchisee or its parent company is responsible for all payments within the
self-insured retention; and (iii) Franchisee assumes all defense and indemnity obligations as
outlined in Section 19.
Section 21. Bonds.
Section 21.1. Construction Performance Bond. Upon an application for a permit
involving excavation, installation, construction, restoration or relocation of the Facilities and if
required by the City, Franchisee shall furnish a performance bond (“Performance Bond”) written
by a corporate surety reasonably acceptable to the city in an amount equal to 150% of the
construction cost, which should not be less than $2,000. The amount of the Performance Bond
may be reduced during construction as determined by the City. The Performance Bond shall
guarantee the following: (1) timely completion of construction; (2) construction in compliance
with all applicable plans, permits, technical codes, and standards; (3) proper location of the
Facilities as specified by the City; (4) restoration of the Rights-of-Way and other City properties
affected by the construction; (5) submission of as-built drawings after completion of construction;
and (6) timely payment and satisfaction of all claims, demands, or liens for labor, materials, or
services provided in connection with the work which could be asserted against the City or City
property. Said bond must remain in full force until the completion of construction, including final
inspection, corrections, and final approval of the work, recording of all easements, provision of as-
built drawings, and the posting of a Maintenance Bond as described in Section 21.2.
Section 21.2. Maintenance Bond. Following excavation, installation, construction,
restoration or relocation of the Facilities and if required by the City, Franchisee shall furnish a two
(2) year maintenance bond (“Maintenance Bond”), or other surety acceptable to the City, at the
time of final acceptance of construction work on Facilities within the Rights-of-Way. The
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Maintenance Bond amount will be equal to ten percent (10%) of the documented final cost of the
construction work. The Maintenance Bond in this Section 21.2 must be in place prior to City’s
release of the bond required by Section 21.1.
Section 21.3. Franchise Bond. Franchisee shall provide City with a bond in the amount
of Twenty-Five Thousand Dollars ($25,000.00) (“Franchise Bond”) running or renewable for the
term of this Franchise, in a form and substance reasonably acceptable to City. In the event
Franchisee shall fail to substantially comply with any one or more of the provisions of this
Franchise following notice and a reasonable opportunity to cure, then there shall be recovered
jointly and severally from Franchisee and the bond any actual damages suffered by City as a result
thereof, including but not limited to staff time, material and equipment costs, compensation or
indemnification of third parties, and the cost of removal or abandonment of facilities hereinabove
described. Franchisee specifically agrees that its failure to comply with the terms of this Section
21 shall constitute a material breach of this Franchise. The amount of the bond shall not be
construed to limit Franchisee's liability or to limit the City's recourse to any remedy to which the
City is otherwise entitled at law or in equity.
Section 22. Abandonment of Franchisee’s Facilities.
Section 22.1. Upon the expiration, termination, or revocation of the rights granted under
this Franchise, Franchisee shall remove all of its Facilities from the Rights-of-Way within thirty
(30) days of receiving written notice from the Public Works Director or designee. The Facilities,
in whole or in part, may not be abandoned by Franchisee without written approval by the City.
Any plan for abandonment or removal of Franchisee’s Facilities must be first approved by the
Public Works Director or his/her designee, and all necessary permits must be obtained prior to
such work. Franchisee shall restore the Right-of-Way to at least the same condition the Rights-of-
Way were in immediately prior to any such removal provided Franchisee shall not be responsible
for any changes to the Right-of-Way not caused by Franchisee or any person doing work for
Franchisee. Franchisee shall be solely responsible for all costs associated with removing its
Facilities.
Section 22.2. Notwithstanding Section 22.1 above, the City may permit Franchisee’s
improvements to be abandoned in place in such a manner as the City may prescribe. Upon
permanent abandonment, and Franchisee’s agreement to transfer ownership of the Facilities to the
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City, Franchisee shall submit to the City a proposal and instruments for transferring ownership to
the City.
Section 22.3. Any Facilities which are not removed within one hundred twenty (120) days
of either the date of termination or revocation or the date the City issued a permit authorizing
removal, whichever is later, shall automatically become the property of the City. Any costs
incurred by the City in safeguarding such Facilities or removing the Facilities shall be reimbursed
by Franchisee. Nothing contained within this Section 22 shall prevent the City from compelling
Franchisee to remove any such Facilities through judicial action when the City has not permitted
Franchisee to abandon said Facilities in place.
Section 22.4. If Franchisee leases a structure in the Right-of-Way from a landlord and
such landlord later replaces, removes or relocates the structure, for example by building a
replacement structure, Franchisee shall remove or relocate its Facilities within the Right-of-Way
within ninety (90) days of such notification from the landlord at no cost to the City.
Section 22.5. The provisions of this Section 22 shall survive the expiration, revocation,
abandonment, or termination of this Franchise and for so long as Franchisee has Facilities in
Rights-of-Way.
Section 23. Forfeiture and Revocation.
Section 23.1. If Franchisee willfully violates or fails to comply with any of the provisions
of this Franchise, or through willful misconduct or gross negligence fails to heed or comply with
any notice given Franchisee by the City under the provisions of this Franchise, then Franchisee
shall, at the election of the Tukwila City Council, forfeit all rights conferred hereunder and this
Franchise may be revoked or annulled by the Council after a hearing held upon notice to
Franchisee.
Section 23.2. Such hearing shall be open to the public and Franchisee and other interested
parties may offer written and/or oral evidence explaining or mitigating such alleged
noncompliance. This hearing does not give the right to either the City or Franchisee to conduct
discovery, subpoena witnesses, or take depositions. Within thirty (30) days after the hearing, the
Tukwila City Council, on the basis of the record, will make the determination as to whether there
is cause for revocation, whether the Franchise will be terminated, or whether lesser sanctions
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should otherwise be imposed. The Tukwila City Council may in its sole discretion fix an additional
time period to cure violations. If the deficiency has not been cured at the expiration of any
additional time period or if the Tukwila City Council does not grant any additional period, the
Tukwila City Council may by resolution declare the Franchise to be revoked and forfeited or
impose lesser sanctions. If Franchisee appeals revocation and termination, such revocation may
be held in abeyance pending judicial review by a court of competent jurisdiction, provided
Franchisee is otherwise in compliance with the Franchise.
Section 24. Remedies to Enforce Compliance.
Section 24.1. The City may elect, without any prejudice to any of its other legal rights and
remedies, to obtain an order from the superior court having jurisdiction compelling Franchisee to
comply with the provisions of the Franchise and to recover damages and costs incurred by the City
by reason of Franchisee’s failure to comply. In addition to any other remedy provided herein, the
City reserves the right to pursue any remedy to compel or force Franchisee and/or its successors
and assigns to comply with the terms hereof, and the pursuit of any right or remedy by the City
shall not prevent the City from thereafter declaring a forfeiture or revocation for breach of the
conditions herein. In addition to any other remedy provided in this Franchise, Franchisee reserves
the right to pursue any remedy available at law or in equity to compel or require the City, its
officers, employees, volunteers, contractors and other agents and representatives, to comply with
the terms of this Franchise. Further, all rights and remedies provided herein shall be in addition to
and cumulative with any and all other rights and remedies available to either the City or Franchisee.
Such rights and remedies shall not be exclusive, and the exercise of one or more rights or remedies
shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right
or remedy. Provided, further, that by entering into this Franchise, it is not the intention of the City
or Franchisee to waive any other rights, remedies, or obligations as otherwise provided by law
equity, or otherwise, and nothing contained here shall be deemed or construed to effect any such
waiver. The parties agree that in the event a party obtains injunctive relief, neither party shall be
required to post a bond or other security and the parties agree not to seek the imposition of such a
requirement.
Section 24.2. If either party (the “Defaulting Party”) shall violate, or fail to comply with
any of the provisions of this Franchise, or should it fail to heed or comply with any notice given
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to such party under the provisions of this Franchise, the other party (the “Non-Defaulting Party”)
shall provide the Defaulting Party with written notice specifying with reasonable particularity the
nature of any such breach and the Defaulting Party shall undertake all commercially reasonable
efforts to cure such breach within thirty (30) days of receipt of notification. If the parties reasonably
determine the breach cannot be cured within (30) thirty days, the Non-Defaulting Party may
specify a longer cure period, and condition the extension of time on the Defaulting Party’s
submittal of a plan to cure the breach within the specified period, commencement of work within
the original thirty (30) day cure period, and diligent prosecution of the work to completion. If the
breach is not cured within the specified time, or the Defaulting Party does not comply with the
specified conditions, the Non-Defaulting Party may pursue any available remedy at law or in
equity as provided in Section 24.1 above, or in the event Franchisee has failed to timely cure or
commence cure of the breach, the City may, at its discretion, (1) revoke this Franchise with no
further notification pursuant to this Section 24, (2) refuse to grant additional permits, or (3) claim
damages of Two Hundred Fifty Dollars ($250.00) per day against the Franchisee or Franchise
Bond set forth in Section 21.3.
Section 25. Non-Waiver.
Section 25.1. The failure of either party to insist upon strict performance of any of the
covenants and agreements of this Franchise or to exercise any option herein conferred in any one
or more instances, shall not be construed to be a waiver or relinquishment of any such covenants,
agreements or option or any other covenants, agreements or option.
Section 26. Acceptance.
Section 26.1. Within sixty days of the approval of this Franchise Ordinance, the
Franchisee shall execute and return to the City its execution and acceptance of this Franchise in
the form attached hereto as Attachment B. In addition, Franchisee shall submit proof of insurance
obtained and additional insured endorsement pursuant to Section 20, any applicable construction
Performance Bond pursuant to Section 21.1, the Franchise Bond required pursuant to Section 21.3,
and the administrative fee pursuant to Section 14.1.
Section 27. Survival.
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Section 27.1. All of the provisions, conditions, and requirements of Section 6, Section 7,
Section 9, Section 10, Section 19, Section 20, Section 22, Section 33, Section 35.3 and Section
35.4 of this Franchise shall be in addition to any and all other obligations and liabilities Franchisee
may have to the City at common law, by statute, or by contract, and shall survive the City’s
Franchise to Franchisee for the use of the Franchise Area, and any renewals or extensions thereof.
All of the provisions, conditions, regulations and requirements contained in this Franchise shall
further be binding upon the heirs, successors, executors, administrators, legal representatives and
assigns of Franchisee and all privileges, as well as all obligations and liabilities of Franchisee shall
inure to its heirs, successors and assigns equally as if they were specifically mentioned where
Franchisee is named herein.
Section 28. Assignment.
Section 28.1. This Franchise may not be directly or indirectly assigned, transferred, or
disposed of by sale, lease, merger, consolidation or other act of Franchisee, by operation of law or
otherwise, unless prior written consent is provided to the City within sixty (60) days following the
assignment. In the case of transfer or assignment as security by mortgage or other security
instrument in whole or in part to secure indebtedness, only notice to the City shall be required at
such time as the secured party elects to realize upon the collateral. For purposes of this Section
28.1, no assignment or transfer of this Franchise shall be deemed to occur based on the public
trading of Franchisee’s stock; provided, however, any tender offer, merger, or similar transaction
resulting in a change of control shall be subject to the provisions of this Franchise. Additionally
and accept as otherwise provided herein, no consent shall be required for sales, transfers, leases,
assignments, subleases or disposals of the Franchise to any parent, subsidiary, affiliate or any
person, firm or corporation that shall control, or be under common control, with the Franchisee.
Section 28.2. Any transactions which singularly or collectively result in a change of 50%
or more of the (i) ownership or working control (for example, management of Franchisee or its
facilities) of the Franchisee; or (ii) ownership or working control of the Franchisee's facilities within
the City; or (iii) control of the capacity or bandwidth of the Franchisee's Telecommunication facilities
within the City, shall be considered an assignment or transfer requiring notice to the City pursuant to
this Franchise. Such transactions between affiliated entities are not exempt from notice requirements.
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A Franchisee shall notify the City of any proposed change in, or transfer of, or acquisition by any
other party of control of a Franchisee within sixty (60) days following the closing of the transaction.
Section 29. Entire Agreement.
Section 29.1. This Franchise constitutes the entire understanding and agreement between
the parties as to the subject matter herein and no other agreements or understandings, written or
otherwise, shall be binding upon the parties upon execution of this Franchise.
Section 30. Extension.
Section 30.1. If this Franchise expires without renewal or is otherwise lawfully terminated
or revoked, the City may, subject to applicable law:
(a)Allow Franchisee to maintain and operate its Facilities on a month-to-month basis,
provided that Franchisee maintains insurance for such Facilities during such period and
continues to comply with this Franchise; or
(b)The City may order the removal of any and all Facilities at Franchisee’s sole cost
and expense consistent with Section 22.
Section 31. Eminent Domain.
Section 31.1. The existence of this Franchise shall not preclude the City from acquiring
by condemnation in accordance with applicable law, all or a portion of the Franchisee’s Facilities
for the fair market value thereof. In determining the value of such Facilities, no value shall be
attributed to the right to occupy the area conferred by this Franchise.
Section 32. Vacation.
Section 32.1. If at any time the City, by ordinance, vacates all or any portion of the area
affected by this Franchise, the City shall not be liable for any damages or loss to the Franchisee by
reason of such vacation. If Franchisee has Facilities in the vacated portion of the Right-of-Way,
the City shall use reasonable efforts to reserve an appurtenant easement for Franchisee within the
vacated portion of the Right-of-Way within which Franchisee may continue to operate existing
Facilities under the terms of this Franchise for the remaining period of the term set forth in Section
4.Notwithstanding the preceding sentence, the City shall incur no liability for failing to reserve
such easement. The City shall notify the Franchisee in writing not less than sixty (60) days before
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Hyper Fiber Franchise Agreement Page 34 of 37
vacating all or any portion of any such area, in which Franchisee is located. The City may, after
sixty (60) days written notice to the Franchisee, terminate this Franchise with respect to such
vacated area.
Section 33. Hazardous Substances.
Section 33.1. Franchisee shall not introduce or use any hazardous substances (chemical
or waste), in violation of any applicable law or regulation, nor shall Franchisee allow any of its
agents, contractors or any person under its control to do the same. Franchisee will be solely
responsible for and will defend, indemnify and hold the City, its officers, officials, employees,
agents and volunteers harmless from and against any and all claims, costs and liabilities including
reasonable attorneys’ fees and costs, arising out of or in connection with the cleanup or restoration
of the property to the extent caused by Franchisee’s use, storage, or disposal of hazardous
substances, whether or not intentional, and the use, storage or disposal of such substances by
Franchisee’s agents, contractors or other persons acting under Franchisee’s control, whether or not
intentional.
Section 33.2. The obligations of the Franchisee under this Section 33 shall survive the
expiration, revocation, abandonment, earlier termination of the Franchise granted by this Franchise
Ordinance.
Section 34. Notice
Section 34.1. Any Notice or information required or permitted to be given to the parties
under this Franchise agreement may be sent to the following addresses unless otherwise specified:
CITY OF TUKWILA
Public Works Director
6200 Southcenter Blvd
Tukwila, WA 98188
206 433-1800
FRANCHISEE
Section 34.2. The Franchisee’s current emergency contact shall be Ripple Fiber Tech
Support/NOC and is reachable via the following number 800-359-5767, and shall be available 24
hours a day, seven days a week. The Franchisee shall promptly notify the City of any change in
the notice address or emergency contact (or title) and phone number.
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Section 35. Miscellaneous.
Section 35.1. Prior to constructing any Facilities, Franchisee shall obtain a business or
utility license from the City. Franchisee shall pay promptly and before they become delinquent,
all taxes on personal property and improvements owned or placed by Franchisee and shall pay all
license fees and public utility charges relating to the conduct of its business, shall pay for all
permits, licenses and zoning approvals, shall pay any other applicable tax unless documentation
of exemption is provided to the City and shall pay utility taxes and license fees imposed by the
City.
Section 35.2. City and Franchisee respectively represent that its signatory is duly
authorized and has full right, power and authority to execute this Franchise.
Section 35.3. If a suit or other action is instituted in connection with any controversy
arising out of this Franchise, the prevailing party shall be entitled to recover all of its costs and
expenses, including such sum as the court may judge as reasonable for attorneys’ fees, costs,
expenses and attorneys’ fees upon appeal of any judgment or ruling.
Section 35.4. This Franchise shall be construed in accordance with the laws of the State
of Washington. Venue for any dispute related to this Franchise shall be the United States District
Court for the Western District of Washington, or Snohomish County Superior Court.
Section 35.5. Section captions and headings are intended solely to facilitate the reading
thereof. Such captions and headings shall not affect the meaning or interpretation of the text
herein.
Section 35.6. Where the context so requires, the singular shall include the plural and the
plural include the singular.
Section 35.7. Franchisee shall be responsible for obtaining all other necessary approvals,
authorizations and agreements from any party or entity and it is acknowledged and agreed that the
City is making no representation, warranty or covenant whether any of the foregoing approvals,
authorizations or agreements are required or have been obtained by Franchisee by any person or
entity.
Section 35.8. This Franchise may be enforced at both law and equity.
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Section 35.9. Franchisee acknowledges that it, and not the City, shall be responsible for
the premises and equipment’s compliance with all marking and lighting requirements of the FAA
and the FCC. Franchisee shall indemnify and hold the City harmless from any fines or other
liabilities caused by Franchisee’s failure to comply with such requirements. Should Franchisee or
the City be cited by either the FCC or the FAA because the Facilities or the Franchisee’s equipment
is not in compliance and should Franchisee fail to cure the conditions of noncompliance within the
timeframe allowed by the citing agency, the City may either terminate this Franchise immediately
on notice to the Franchisee or proceed to cure the conditions of noncompliance at the Franchisee’s
expense.
Section 35.10. This Franchise is subject to all current and future applicable federal, State
and local laws, regulations and orders of governmental agencies as amended, including but not
limited to the Communications Act of 1934, as amended, the Telecommunications Act of 1996, as
amended and the Rules and Regulations of the FCC. Neither the City nor Franchisee waive any
rights they may have under any such laws, rules, or regulations.
Section 35.11. There are no third party beneficiaries to this Franchise.
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Attachment B
STATEMENT OF ACCEPTANCE
_______________________________________, for itself, its successors and assigns, hereby
accepts and agrees to be bound by all lawful terms, conditions and provisions of the Franchise
attached hereto and incorporated herein by this reference.
_______________________________________
By: ____________________________________ Date: ______________________________
Name: ____________________
Title: ____________________
STATE OF ________________ )
)ss.
COUNTY OF ______________ )
On this ____ day of _______________, 2025, before me the undersigned, a Notary Public in and
for the State of _________________, duly commissioned and sworn, personally appeared,
__________________ of _____________________, the company that executed the within and
foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and
deed of said company, for the uses and purposes therein mentioned, and on oath stated that he/she
is authorized to execute said instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal on the date
hereinabove set forth.
_____________________________________________
Signature
_____________________________________________
NOTARY PUBLIC in and for the State of __________________,
Residing at ________________________
MY COMMISSION EXPIRES: __________________________.
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{EFM2366038.DOCX;3/13174.000001/ } 1
City of Tukwila
Telecommunications Franchise Application
For Location of Telecommunications
Facilities Within City Right-of-Way
IMPORTANT: THIS APPLICATION CAN NOT BE SUBMITTED UNLESS
ACCOMPANIED BY A FRANCHISE APPLICATION FEE DEPOSIT OF $5891.00
DOLLARS CONSISTENT WITH TUKWILA MUNICIPAL CODE AND FEE
RESOLUTIONS. THIS DEPOSIT IS TO COVER ACTUAL ADMINISTRATIVE EXPENSES
INCURRED BY THE CITY (INCLUDING STAFF AND ATTORNEY/CONSULTANT
RELATED TIME) ASSOCIATED WITH THE REVIEW OF THIS FRANCHISE
APPLICATION AND ASSOCIATED FRANCHISE NEGOTIATIONS. THIS IS ONLY AN
INITIAL DEPOSIT; ADDITIONAL FEES MAY APPLY IF ADDITIONAL STAFF AND
ATTORNEY/CONSULTANT RELATED TIME IS NECESSARY.
Applicants may attach additional pages to further explain the answers below. If a question is
not applicable to an application as in the case of a transfer of ownership of a franchisee
without a change in the facilities and/or business operations of the acquired entity, an
applicant may refer to the information in and the requirements of the underlying franchise.
If you have any questions related to filling out this Franchise Application Form, please contact:
Eric Compton via e-mail at Eric.Compton@TukwilaWA.gov.
General Information
Name of Applicant:
Address:
City:
State:
Zip Code: Telephone:
Has the Applicant obtained a city business license?
Yes No
PLEASE NOTE: All telecommunication carriers and service providers engaged in the business of
transmitting, supplying, or furnishing telecommunications service of any kind originating or terminating in
the City of Tukwila shall apply and obtain a Business License from the City pursuant to Chapter 5.04 of
Tukwila Municipal Code.
Name of Person Filing this Application:
Title:
Company:
Address:
City: Zip Code: Telephone:
636-795-4660
Town and Country
MO
Justin Nelson
Chief Operating Officer
530 Maryville Center Dr. Ste. 250
Town and Country 970-412-6298
63141
530 Maryville Center Dr. Ste. 250
HyperFiber Holdco LLC.
HyperFiber Holdco LLC.
Attachment B
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{EFM2366038.DOCX;3/13174.000001/ } 2
State: Email:
Are you serving as agent for the above-named applicant?
If yes, please attach proof of agency.
Yes No
Property and Facility Information
Is this an application for:
(i) New franchise? Yes No
(ii)Renewal/amending an existing franchise? Yes No
(iii)Transfer of a franchise? Yes No , if yes, identify who currently holds the franchise:
If you are renewing/amending an existing franchise, has your franchise otherwise expired?
Yes No
If not, what is the expiration date of your current franchise?
Describe the telecommunications services that will be offered over the telecommunications facilities.
The applicant may answer yes to one or more of the following questions.
Are you proposing to install facilities for personal wireless services? Yes No
Are you proposing to install small wireless facilities as defined by TMC 18.58.040 in the right of way ?
Yes No
Are you proposing to install underground wireline facilities? Yes No
Are you proposing to install aerial wireline facilities? Yes No
Are you proposing to install only one facility in the right of way? Yes No
Are you proposing to operate cable service or other video programming service? Yes No
Are you proposing to install a wireless communications tower in the right of way? Yes No
Are you proposing to install new poles in the right of way? Yes No
Are you proposing to install replacement poles in the right of way? Yes No
If you are proposing to install replacement poles in the right of way, will these poles be over 60 feet?
MO 63141 jnelson@hyperfiber.com
HyperFiber proposes a fiber optic infrastructure that will provide high speed internet service to the service
areas that will be reviewed and identified within the City of Tukwila. HyperFiber's proposed fiber build will
consist of placing fiber within the right of way of the city.
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Yes No
Are you proposing to install ground equipment in the right of way? Yes No
Describe the telecommunications facilities and/or other equipment (including personal wireless
services and wireless communications facilities) proposed to be located within the right-of-way.
Please provide a photo simulation of the proposed facilities if available, which shall include a
description of any interconnection and electrical requirements and a description of which structures
the facilities will be connected or attached.
Describe the transmission medium that will be used to provide telecommunications.
Describe the areas of the city that are anticipated to be served. What is the expected build-out
schedule for these areas? If the City is already built out, describe if there are any expected
construction projects.
Describe your site access policies.
Do you have an existing pole attachment or lease agreement with owners of poles in the right of way?
Yes No
Have you coordinated with pole owners regarding usage of their facilities and their requirements for
leases/pole attachments? Yes No
Is electrical power to your facilities needed? Yes No
If electrical power is needed, please describe how the facilities will receive electrical power.
Have you coordinated with the local electrical utility about their requirements to provide electrical
power to your facilities? Yes No
Is backhaul infrastructure to your facilities needed? Yes No
Is the backhaul infrastructure provided by a third party? Yes No
If backhaul is needed, please describe how the facilities will receive backhaul.
Have you coordinated with backhaul providers regarding their requirements to provide backhaul
Electrical service for active equipment cabinets will be placed underground to the facility
HyperFiber will connect to the backhaul provider at their meet me point location.
Fiber optic facilities would be placed within the city right of way,
which could include the use of public utility easements, or easements dedicated for compatible uses. Fiber will be
placed in locations that are capable of accommodating the installation of fiber and other associated appurtenances. All
construction guidelines of the city will be followed. Power delivery for active cabinets will be provided by the local
area service provider and electrical service will be brought to the cabinet by underground installation methods.
Site access will be required for the initial installation of fiber and appurtenant equipment, and then only after that for
occasional maintenance or customer service drops. Approved traffic control permits, and associated traffic control
plans will be utilized when needed.
Nokia Telecommunications equipment that will transmit light through the proposed fiber optic network to provide high
speed internet to the home.
HyperFiber does not know the exact build-out locations of the proposed fiber service area.
This will be determined when we identify the fiber needs of the community. In general, HyperFiber will be proposing to
work entirely within the boundary of the City of Tukwila. Location specific plans will be permitted through the city as
required. HyperFiber's build-out schedule is anticipated to be over a period of 1-2 years.
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services to your facility? Yes No
If the facilities are using microwave technologies for backhaul, are there existing macro facilities
within the city (or neighboring jurisdictions) to support this technology?
Please describe if your facilities will need any additional interconnection with existing
telecommunications facilities or carriers.
Indicate what licenses, certificates, and authorizations are required from the Federal
Communications Commission, the Washington Utilities and Transportation Commission and any
other federal or state agency with jurisdiction over the proposed activities. Have all such licenses,
certificates and authorizations been obtained? Please attach your registration with the Washington
Utilities and Transportation Commission.
Describe in detail the services that you expect to provide within the City, including whether the
provision of services will be to commercial and/or residential customers.
Provide a summary of all utility taxes the proposed activities, facilities, and other equipment will be
subject to. In doing so, provide an estimate of income/revenues that can be used to calculate
estimated future utility taxes. Should the applicant believe it is not subject to any utility taxes,
provide the basis for such belief.
Explain whether the Internet Tax Freedom Act does or does not apply to the services being provided.
The City of Tukwila reserves the right to ask additional questions on a case-by-case basis.
HyperFiber will not utilize microwave technology for this proposed project.
This is to be determined once HyperFiber has identified the areas of fiber service and engineering design
of the proposed facilities.
HyperFiber provides high speed internet services for customers through the use of fiber optic technology. HyperFiber's
proposed service would consist of placing fiber and related equipment within the city's right of way.
Please reference the supplemental documentation that is included as a part of the application submittal package.
HyperFiber is not subject to utility taxes.
HyperFiber is an Internet Service Provider (ISP) and the Internet Tax Freedom Act of 1998 provides an ISP an exemption from state
state and local taxes.
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Certification
I certify that the information and any attachment submitted herewith are true and correct to the best of my
knowledge and that I have the authority to file this application and act on behalf of the above-named
telecommunications provider or carrier.
Signature Please Print Name Date
Submit to:
Received By:
Signature Please Print Name Date
ALSO SUBMIT WITH THIS COMPLETED APPLICATION FORM AS APPLICABLE:
1) Provide a map of the area to be covered by the franchise and include specific locations of initial
build-out, if known. Identify which facilities will be underground, ground based and aerial.
2) Evidence of registration in the one-number locator service, as described in RCW Chapter 19.122.
3) Financial statements prepared in accordance with generally accepted accounting principles
demonstrating the applicant’s financial ability to construct, operate, maintain, relocate, and
remove the facilities.
4) If the initial deployment is known, an 11”x17” set of preliminary construction designs,
specifications, and a map for initial deployment with sufficient detail to identify the following
items:
a.The location and route requested for the applicant’s proposed telecommunications
facilities; and
b. The location of overhead and underground public utility, telecommunication, cable,
water, sewer drainage and other lines and equipment in the rights-of-way along the
proposed route; and
c.The specific trees, structures, improvements, facilities, lines and equipment and
obstructions, if any, that the applicant proposes to temporarily or permanently remove or
relocate; and
d. If the applicant is proposing an underground installation within new ducts or conduits to
be constructed within the rights-of-way and to the extent specific locations are known:
i.The location proposed for new ducts or conduits.
ii.Evidence that there is sufficient capacity within the rights-of-way for the
proposed telecommunications facilities; and
e.Photo simulations of any small wireless facilities if such facilities are proposed which
shall include a description of any interconnection and electrical requirements and a
description of which structures the facilities will be connected to or attached.
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
Attn: Eric Compton
Justin Nelson Feb 21, 2025
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5) A preliminary construction schedule and anticipated completion date.
6) Description of any zoning or land use permits that have been applied for or obtained from the
city, as applicable.
7) List of other Washington jurisdictions in which applicant has a franchise or master permit.
86
ITEM INFORMATION
STAFF SPONSOR: TC CROONE ORIGINAL AGENDA DATE: 07/14/25
AGENDA ITEM TITLE Compensation Policy Presentation
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 7/14/25 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY Human Resources uses the City's Compensation Policy, Resolution 1951, as guidance for
market studies prior to each contract negotiation. Additionally, the Resolution provides
guidance for when we conduct non-represented market and compensation studies. This
presentation is to discuss context, challenges, and potentially explore options to revise the
policy.
REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: N/A COMMITTEE CHAIR: N/A
RECOMMENDATIONS:
SPONSOR/ADMIN. Human Resources
COMMITTEE N/A
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source: GENERAL FUND
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
7/14/25
MTG. DATE ATTACHMENTS
7/14/25 Informational memorandum dated 7/14/25
Resolution No. 1951 - City's Compensation Policy
Policy 02.05.21 - Salary Plan Administration for City Staff
Compensation Policy PowerPoint presentation
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
07/14/2025 TC 5.D.
87
INFORMATIONAL MEMORANDUM
To: City Council
From: TC Croone, Chief People Officer
CC: Mayor Thomas McLeod
Date: July 14, 2025
Subject: Compensation Policy presentation
ISSUE
There have been several challenges with Resolution 1951 guidance, including using Assessed
Value (AV) as a benchmark. Cities with AV’s that align with the resolution tend to be cities that
are geographically distant from Tukwila. We would like to explore options with the council to
re-examine the resolution as it is written and consider options for revision, based upon lessons
learned from recent negotiations and the 2023 study.
BACKGROUND
Human Resources engaged with McGrath Consulting to conduct a market and compensation
study in 2023. The study was scheduled to be completed in 2020. However, it was postponed
due to turnover within Human Resources COVID. A summary of the market and
compensation study was provided to the council via a memo November 12, 2024.
Human Resources uses Resolution 1951 as guidance for market studies prior to each contract
negotiation. Additionally, the Resolution provides guidance for when we conduct non-
represented market and compensation studies.
DISCUSSION
Provide context for the purpose of Resolution 1951. Discuss market and compensation study
from 2023 for non-represented employees. Discuss internal equity and compression. Discuss
potential revisions to Resolution 1951 going forward.
RECOMMENDATION
The Council is being asked to review and discuss potential changes to Resolution 1951 during
the July 14 meeting.
ATTACHMENTS
A.Resolution 1951
B.Policy 02.05.21
C.Compensation Policy PowerPoint presentation
88
City of Tukwila
Washington
Resolution No. J 957
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, ESTABLISHING A
COMPENSATION POLICY FOR CITY OF TUKWILA
EMPLOYEES AND REPEALING RESOLUTION NO. 1796.
WHEREAS, the City believes that the purpose of a compensation program is to
facilitate recruiting, retention, development and productivity of employees; and
WHEREAS, the City desires to utilize standardized policies, procedures and
processes, wherever possible, for compensating all employee groups, both represented
and non -represented; and
WHEREAS, the City recognizes that current economic conditions and forecasts,
long-range City budget forecasts, and position rates for comparable jurisdictions, as
well as internal equity considerations, should assist in guiding the compensation of
employees; and
WHEREAS, the City has made a determination to, when economic conditions
allow, review and adjust non -represented employee salaries via a market analysis to
that of the average of comparable jurisdictions in even -numbered years, and to provide
a cost -of -living (COLA) allowance in odd -numbered years; and
WHEREAS, the City has made a determination to, when economic conditions and
negotiations allow, provide represented employees with salaries that reflect the average
of comparable jurisdictions; and
WHEREAS, the City has made a determination to, when economic conditions
allow, provide benefits to represented and non -represented employees that are slightly
above the average of comparable jurisdictions; and
WHEREAS, the City Council will participate in setting negotiation expectations and
reviewing and approving represented employee group contracts;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
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Section 1. The following statements and processes are adopted for the purpose of
guiding compensation programs for employees of the City of Tukwila.
A. Information to be provided to the City Council.
1. For Represented Employees. A written presentation of current internal
and local external public agency salary and benefit trends, including a salary and
benefits market survey of comparable jurisdictions, as defined herein, will be provided
to the City Council. This presentation must be made to the Council prior to the
commencement of negotiations with the bargaining units regarding salary and benefits.
The City Council and Administration will discuss represented employee group
negotiation expectations, negotiating points, salary and benefit change floors and/or
ceilings prior to the beginning of, and at appropriate points during, negotiation sessions.
2. For Non -Represented Employees. A written presentation of current
internal and local external public agency salary and benefit trends, including a salary
and benefits market survey of comparable jurisdictions, as defined herein, will be
provided to the City Council by Administration every year by the end of the third quarter
that a non -represented salary increase is due. Relevant Association of Washington
Cities (AWC) data from the previous year's Washington City and County Employee
Salary and Benefit Survey, for the comparable jurisdictions, will be used in the salary
market survey.
B. Compensation Policy.
1. All Puget Sound jurisdictions with +75/-50% of Tukwila's annual assessed
valuation, using the most current data from County Assessors, will be used to create
the list of comparable jurisdictions for evaluation of salary information. A second
criteria to be used to refine comparable jurisdictions is to only include cities with their
own police department. It is desirable to use the same comparable jurisdictions for
both represented and non -represented employee groups.
2. For non -represented employees, the City desires to pay the average salary
for the particular pay scale, as derived from the comparable jurisdiction data described
in Section B.1. If the City's pay scale for any classification does not represent the
average of comparable salary ranges (+/-5%), written justification must be provided to
the City Council. For represented employees, the City desires to pay salaries that are
competitive to the City's comparable jurisdictions.
3. Positions that are 5% below the market and up to 10% above the market
are considered competitive with the market and will receive a market adjustment the
year the survey is to occur. Those positions more than 10% above the market will not
receive an adjustment during the year the market adjustment is to occur and will
warrant further evaluation. Documented justification of potential reclassification will be
provided to the City Council for review and approval. If the documented justification
results in reclassification, any adjustments will be made in alignment with City policy.
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4. The cost -of -living adjustment (COLA) in odd -numbered years for non -
represented employees shall be based upon 90% of the Seattle -Tacoma -Bellevue
Consumer Price Index (CPI-W) Average (June to June). It is desirable to calculate
represented cost -of -living adjustments the same way, unless a different method is
authorized by the Council. Considerations for cost -of -living adjustment for odd -
numbered years will be based upon internal equity with represented groups to
determine if an adjustment is warranted. Administration will provide a written
justification documenting that an adjustment is warranted for the City Council's review
and approval prior to implementation.
5. The goal of the City is to establish parity between represented and non -
represented employees' benefits. The City desires to provide employee benefits that
are competitive to the comparable cities described herein. The City will endeavor to
keep increases to annual health care costs under market averages. If costs exceed
market averages, adjustments will be made to reduce benefit costs.
6. The goal of the City is to mitigate or avoid salary compression issues
where possible. An example of salary compression is when there is only a small
difference in pay between employees regardless of their skills, level, seniority or
experience. Administration will provide a written justification documenting that an
adjustment is warranted for the City Council's review and approval prior to
implementation.
7. The City Council shall review the compensation policy described herein on
an annual basis to assess efficacy and make adjustments if warranted. If the
Administration determines that a deviation from the above process (in its entirety or for
individual positions) is necessary, it will provide justification to the City Council for
review and approval prior to the adoption of any process change.
Section 2. Resolution No. 1796 is hereby repealed.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this / gm) day of y/o i P M b-- -- , 2018.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
1U- c
Rachel B. Turpin, City Attorney
Verna Seal, Council President
Filed with the City Clerk: / 1-I Gt-/?
Passed by the City Council: j
Resolution Number: (c1,51
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JULY 14, 2025Tukwila’s Compensation PolicyResolution 195194
Tonight’s Presentation: IntroductionOverview: Resolution 1951 and its intentPolicy & PracticeOur Experience: 2023 Class & Comp study, Application of Res. 1951Managing Salary Compression and Internal Salary EquityFuture: Consider Policy ChangesCouncil Review & Discussion95
Tukwila’s Employees & Classifications: 243 Represented, 37 Non-Represented3 Unions, 8 Bargaining UnitsPolice Non-commissioned• Police Records staff• Represented by USWCommissioned• Officers, Sergeants, Commanders• Represented by Teamsters 117Program Managers? UpdateListListRepresented by Teamsters 763Administrative/Technical•Court operations and support staff•DCD inspections & permits•Finance support•Parks & Recreation staff•Administrative support staff•Represented by Teamsters 763Maintenance/Trades• Facilities Custodians & Techs• Maintenance & Operations staff(Utilities)• Fleet & Facilities staff• Represented by Teamsters 763Professional/Supervisory•TIS, DCD professional staff•Courts, Emergency Management•Public Works Project & Programmanagement•Parks & Rec, Finance/Payroll Project &Program management•Represented by Teamsters 763Non-Represented•Confidential administrative support•Analysts•Managers•Directors & Deputy Directors•Deputy City Administrator•Police Chief and Deputy Police Chief96
Res 1951: What’s in the Policy•Comparable jurisdictions to evaluate pay: Puget Sound, +75/-50% of Tukwila’s assessed valuation (AV), cities with police department•Compensation Goals: Non-represented -average of comparable jurisdictions or justify to Council; Represented -competitive to comparable jurisdictions. Avoid compression.•Competitive: market adjustment for -5% market and up to 10% above market•COLA: odd years (non-rep), 90% of CPI-W Average. Parity between represented and non-rep, consider internal equity; justify to Council.•Benefits: goal is parity between represented and non-rep employees, competitive with comparables, keep increases below market average.•Information for Council: benefit trends, market survey of comparables, negotiation expectations, updates (for RepresentedEmployees, before negotiations; Non-RepEmployees, each year 3rdquarter)•Annual City Council policy review97
Res. 1951: Intent of Comp Policy Help recruit, retain, and develop productive employeesUse standard approaches to compensate all employees (parity)Informed by economics; budget forecast; comparables; internal equityAdjust non-rep pay with market analysis (even years), COLA (odd years)Provide represented employees with pay at average of comparablesaseconomic conditions and negotiations allowProvide non-rep employees with benefits above average of comparablesCouncil participation: set negotiation expectations, review CBAs98
Policy and PracticeLast Class & Comp Study (Non-Rep)• Planned for 2020• Postponed due toCOVID and HRturnover•Completed &Implemented in2023Interest Arbitration (Police)• Why AssessedValue is important•Objectivebenchmarks• Indicator of what acity can afford• Signals stabilityAdministration Policy 02.05.21•DefinesAdministrationand Councilresponsibility• Procedure for newhires, transfers,promotions,reclassifications99
Our Experience2023• Completed & ImplementedClass and Comp Study fornon-reps only2024• Negotiated 7 of 8 contracts• Used AWC data for marketcompensation benchmarks• Presented to council viaClosed Sessions to getauthority2025•Negotiation for 1 contract pending• Potential rollover to 2026 of4 contracts – Teamsters 763• Class & Comp studies forNon-Rep and Teamsters 763will begin, per Res. 1951100
Our Experience –2023 Class & Comp StudyStudy was for non-represented employeesDelayed from 2020 due to COVID and HR turnoverGoals: Ensure that salaries aligned with market competitors; eliminate the Decision Band Method (DBM) of determining salaries and pay gradesImplemented salary changes in Dec. 2023, funded with mid-biennium budget adjustmentStudy recommendations: 7-step compensation schedule, point factor system, built from average of market, don’t use AV, designed to minimize compression, separate schedule for Deputy Chief, Chief, City Administrator101
Our Experience –Pros & Cons of Res. 1951What has worked well-Authorization from council prior to negotiations gives clarity and guidance -Benchmarking both AV cities based upon Res. 1951 and Valley citiesChallenges- Using only AV cities based upon Res. 1951- Required frequency of comp studies- Updating outdated job classifications, descriptions, together with conducting compensation studies- Adhering to Policy 02.05.21 for new hires- Salary compression, internal equity is still unbalanced- Calculating comps manually- Transparency to Council
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Salary CompressionSalary Compression –Employees at pay rates close to, or sometimes higher than, what long-term employees or supervisors earn. How do we manage it? Regularly review and adjust compensation structure to keep pay equitable across roles and experience levels. 103
Internal Salary EquityWhat is it?•Employees are paid fairly compared to others based on job responsibilities, experience, and performance. •Similar pay for similar workHow do we manage it?Regularly review pay across roles to ensure employees in similar positions with comparable experience and performance are compensated fairly. Needs clear job descriptions, consistent evaluation, structured pay ranges, management accountability. 104
Comparable JurisdictionsEdmondsLakewoodLynnwoodMarysvilleMukilteoMill CreekLake StevensIssaquahBothellPuyallupComparable jurisdictions based upon Assessed Value (AV)Valley Cities that are geographically near TukwilaAuburnDes MoinesFederal WayKentRenton105
Potential Policy Changes•Remove Council reclassification approval - align with City policy•Challenges meeting current policy: frequency of/time needed for marketstudies, timing for council reports and COLA•Compensation data always a year behind•Total cost of compensation vs. pay•Update comparable cities: expand criteria beyond AV, include geographyof neighbors (surrounding/Valley Cities)•Better job classifications for comparison and job matching•What would be part of an ideal policy?•Council Discussion & Questions106
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dTentative Agenda Schedule
MEETING 1 –
REGULAR
MEETING 2 –
C.O.W.
MEETING 3 –
REGULAR
MEETING 4 –
C.O.W.
JULY 7
WORK SESSION
Work Session cancelled.
REGULAR MEETING
Regular Meeting cancelled.
JULY 14
See below links for the
agenda packets to view the
agenda items:
July 14, 2025
Committee of the Whole /
Special Meeting
JULY 21
WORK SESSION
-2024-2025 Human Services update.
-Revenue Proviso Report.
REGULAR MEETING
PRESENTATION
-2025 Washington State Legislative Post
Session Update.
CONSENT AGENDA
-Supplemental Agreement #2 for
Southcenter Boulevard / 65th Avenue
Signal.
-Interagency Agreement with King County
Parks.
-Ordinance granting to Hyper Fiber, and its
affiliates, successors and assigns, the
right, privilege, authority and nonexclusive
franchise for five years, to construct,
maintain, operate, replace and repair a
broadband services fiber optic broadband
services network, in, across, over, along,
under, through and below certain
designated public rights-of-way of the City
of Tukwila.
-Contract for Hazelnut Park Climbing
Boulder Installation.
-Contract for Tukwila Community Center
Riverside Campus Sun Shade Installation.
-Resolutions adopting City Investment and
Debt Policies.
UNFINISHED BUSINESS
-Approval of Commerce / EPA Grant for
Critical Area Ordinance and NPDES Item.
-Contract for Environmental Services with
Facet NW.
NEW BUSINESS
-Resolution updating the City
Compensation Policy.
-Discussion on City Council Position #6.
JULY 28
SPECIAL ISSUES
-King County Metro South Link
Connections Project Phase 3.
-State of the Capital Improvement
Program – Semi-Annual Update.
MEETING 1 –
REGULAR
MEETING 2 –
C.O.W.
MEETING 3 –
REGULAR
MEETING 4 –
C.O.W.
AUGUST 4
WORK SESSION
REGULAR MEETING
PRESENTATION
-Seattle City Light Presentation.
CONSENT AGENDA
-Grant award from WA State
Department of Transportation for
2025-2029 Commute Trip Reduction.
-Grant award for 2025-2027
Transportation Demand Management
Regional Mobility Grant Program.
-Grant acceptance for 2025-2027
Transportation Demand Management
from King County Metro.
-Bid award for 2025 Annual Overlay
Project Construction.
-Cost Share Agreement for Water
District #125 – 2025 Overlay Project.
-Bid award for Sewer Lift Station #2
Structural Modifications.
UNFINISHED BUSINESS
-Resolution to update City
Compensation Policy.
AUGUST 11
SPECIAL ISSUES
-Ordinance adopting the 2026 Park
Impact Fee Rate.
-Ordinance adopting the 2026 Fire
Impact Fee Rate.
-Ordinances and resolution relating
to the Business & Occupation Tax
and Business Licensing.
REPORTS
-Quarterly Business & Occupation
Tax Report.
AUGUST 18
WORK SESSION
REGULAR MEETING
CONSENT AGENDA
-Contract for Tukwila Parks, Recreation &
Open Space (PROS) Plan Request for
Proposal.
UNFINISHED BUSINESS
-Green Tukwila Mid-Year Report.
NEW BUSINESS
-Ordinance adopting the 2026 Park Impact
Fee Rate.
-Ordinance adopting the 2026 Fire Impact
Fee Rate.
-Ordinances and resolution relating to the
Business & Occupation Tax and Business
Licensing.
AUGUST 25
PUBLIC HEARING
-Ordinance updating cannabis
regulations.
SPECIAL ISSUES
-Ordinance updating cannabis
regulations.
Special Meeting to follow
Committee of the Whole
Meeting.
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