HomeMy WebLinkAboutCity Council Committees - Operations Committee - 08/20/2019
Unless otherwise noted, the Operations Committee meets at 4 p.m. on the first and third
Tuesday of each month in Kent City Hall, Council Chambers East, 220 Fourth Avenue South,
Kent, WA 98032.
For additional information please contact Cathie Everett at 253-856-5705, or via email at
CEverett@KentWA.gov.
Any person requiring a disability accommodation should contact the City Clerk’s Office at
253-856-5725 in advance. For TDD relay service call Washington Telecommunications Rela y
Service at 7-1-1.
Operations Committee
Agenda
Chair - Les Thomas
Bill Boyce– Dennis Higgins
Tuesday, August 20, 2019
4:00 p.m.
Item Description Action Speaker Time
1. Call to Order Chair 01 MIN.
2. Roll Call Chair 01 MIN.
3. Changes to the Agenda Chair 01 MIN.
4. Approval of July 16, 2019
Minutes
YES Chair 05 MIN.
5. Approval of Check Summary
Report Dated July 1 through July
15 and July 16 through 31,
2019.
YES Chair 05 MIN.
6. Small Cell Franchise with Verizon YES Assistant City Attorney
Christina Schuck
15 MIN.
7. Municipal Court Ordinance KCC
2.34 - Repeal and Reenact
YES Assistant City Attorney
Tammy White and
Judge Glenn Phillips
05 MIN.
8. Origami - Risk Management
Information System Contract
YES Risk Manager Chris Hills 05 MIN.
9. 2019-2020 Property Insurance
Program Review
NO Risk Manager Chris Hills 05 MIN.
10. June Financial Report NO Senior Financial Analyst
Shane Sorenson
05 MIN.
11. Adjournment Chair 01 MIN.
Page 1 of 3
Pending Approval
Operations Committee
CC Ops Regular Meeting
Minutes
July 16, 2019
Date: July 16, 2019
Time: 4:00 p.m.
Place: Chambers
Attending: Les Thomas, Committee Chair
Bill Boyce, Councilmember
Dennis Higgins, Councilmember
Agenda:
1. Call to Order 4:00 p.m.
2. Roll Call
Attendee Name Title Status Arrived
Les Thomas Committee Chair Present
Bill Boyce Councilmember Present
Dennis Higgins Councilmember Present
3. Changes to the Agenda
There were no changes to the agenda.
4. Approval of Minutes dated July 2, 2019
MOTION: Move to approve the Minutes dated July 2, 2019
RESULT: APPROVED [UNANIMOUS]
MOVER: Dennis Higgins, Councilmember
SECONDER: Bill Boyce, Councilmember
AYES: Thomas, Boyce, Higgins
5. Approval of Check Summary Report Dated June 16 through June 30,
2019
MOTION: Move to approve the check summary report dated June 16
through June 30, 2019.
RESULT: APPROVED [UNANIMOUS]
MOVER: Bill Boyce, Councilmember
SECONDER: Dennis Higgins, Councilmember
AYES: Thomas, Boyce, Higgins
6. Consultant Services Agreement with Robert Half International -
Authorize
IT Director Mike Carrington and PMO Supervisor Brian Rambonga presented a
request to recommend council authorize the Mayor to sign an agreement
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Operations Committee CC Ops Regular Meeting
Minutes
July 16, 2019
Kent, Washington
Page 2 of 3
with Robert Half International to provide information technology
professionals in project and contract to hire positions as needed. The
Information Technology department will leverage contractor work through
Robert Half that is currently expected to cost no more than $2,499,226.49.
MOTION: Authorize the Mayor to sign all necessary documents to
enter into agreement with Robert Half International Inc., subject to
final terms and conditions acceptable to the Information Technology
Director and the City Attorney, for a total amount not to exceed
$2,499,226.49.
RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS]Next: 8/6/2019 5:00
PM
MOVER: Dennis Higgins, Councilmember
SECONDER: Bill Boyce, Councilmember
AYES: Thomas, Boyce, Higgins
7. Consolidating Budget Adjustment Ordinance for Adjustments
Between March 1, 2019 and June 30, 2019 - Adopt
Interim Finance Director Barbara Lopez presented a request to authorize
council to approve the consolidating budget adjustment ordinance for
adjustments made between March 1 and June 30, 2019 reflecting an overall
budget increase of $15,871,920. Adjustments totaling $11,285,320 have
previously been approved by Council. The remaining adjustments totaling
$4,586,600 have not been previously approved by Council. Some of the
highlights include $1,880,000 for software, system integrations and
contingency, $320,000 for two term-limited positions to backfill HR and
Payroll staff, $140,000 increase to budgeted unemployment claims based on
year-to-date costs and $45,000 for HR/Finance Director search. These
expenditures are funded by grants, existing fund balance, or other new
revenues.
MOTION: Adopt Ordinance No. ____, approving the consolidating
budget adjustment ordinance for adjustments made between March
1, 2019 and June 30, 2019, reflecting an overall budget increase of
$15,871,920.
RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS]Next: 8/6/2019 5:00
PM
MOVER: Bill Boyce, Councilmember
SECONDER: Dennis Higgins, Councilmember
AYES: Thomas, Boyce, Higgins
8. Debit/Credit Card Payment Changes
Interim Finance Director Barbara Lopez, IT Project Manager Annette Pape
and Customer Service Manager Patty Roseto brought an information only
item to the committee explaining a new process that will be implemented to
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Operations Committee CC Ops Regular Meeting
Minutes
July 16, 2019
Kent, Washington
Page 3 of 3
mitigate the merchant bankcard fees currently being paid by the City. The
City paid $781,000 in merchant bankcard fees in 2018. It was recommended
to Administration that a 2.65% service fee be added to the customer for all
card payments taken by Customer Service and via the City of Kent Portal,
which will cover the cost of the merchant bankcard fees. Approval was given
to implement the service fee at the Customer Service location when the new
cashiering and card processing systems come on-line later this year. Fees will
be re-evaluated annually to ensure the service fee continues to cover the
merchant bankcard fees without costing the customer more than is
necessary. Staff has developed a communication plan which includes a Kent
Now video with Mayor Ralph, Information posted on the website and
Customer Service counter and scripts for staff to ensure consistent
communication. The committee requested that Finance make the process of
re-evaluating the amount of this fee each year an official process. Ms. Lopez
will work with the Legal Department to make this a formal process.
9. Adjournment 4:28 p.m.
Cathie Everett
Committee Secretary
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OPERATIONS COMMITTEE
Derek Matheson, Chief Administrative Officer
220 Fourth Ave S
Kent, WA 98032
256-856-5712
DATE: August 20, 2019
TO: Operations Committee
SUBJECT: Approval of Check Summary Report Dated July 1 through July
15 and July 16 through 31, 2019.
MOTION: Move to approve check summary reports dated July 1 through July 15
and July 16 through 31, 2019.
SUPPORTS STRATEGIC PLAN GOAL:
Sustainable Services
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OPERATIONS COMMITTEE
Derek Matheson, Chief Administrative Officer
220 Fourth Ave S
Kent, WA 98032
256-856-5712
DATE: August 20, 2019
TO: Operations Committee
SUBJECT: Small Cell Franchise with Verizon
MOTION: Recommend council adopt an ordinance establishing a 5-year franchise
agreement with Seattle SMSA Limited Partnership, doing business as Verizon
Wireless, subject to final terms and conditions acceptable to the City.
SUMMARY:
The City has been negotiating franchise agreements with a number of
telecommunications companies that are seeking to deploy new small cell equipment
on Puget Sound Energy utility poles throughout the City. The City adopted a
franchise with AT&T earlier this year. Small cells are a relatively new wireless
technology and are low-powered with a smaller profile than traditional wireless
communication facilities, i.e., monopoles. They are deployed to provide additional
capacity for networks and sometimes to provide coverage in areas where the
traditional cell phone towers are challenged by terrain or buildings. As consumers’
reliance upon mobile devices continues to increase, wireless infrastructure must
continue to be upgraded and improved to keep up with demand. By all accounts
small cells will be integral to the future deployment of 5G wireless technology.
Accordingly, small cell deployment is expected to increase dramatically, with
hundreds of individual cells deployed throughout the City.
The installation of small cells raises safety and aesthetic concerns and will consume
considerable City resources, including staff time. Small cell equipment can be small
and compact, but can also be the size of a small refrigerator. Deploying this
equipment on existing utility poles often means that the pole must be replaced to
accommodate the additional load. Electrical safety standards must also be met,
leading to the installation of taller replacement poles. Importantly, small cells also
require fiber optics. Fiber is attached to small cells via conduits installed on the
poles. Additionally, this fiber must run either aerially on wires or be installed
underground. All of these small cell components directly impact the City’s rights-of-
way.
The legal landscape surrounding this technology has changed on both federal and
local levels. Recent action by the Federal Communications Commission (FCC) has
significantly limited local control over small cell deployments and requires the City
to act on applications within compressed timelines. In response, the City has
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updated its code to establish a specific franchise application process and has
established design standards and aesthetic requirements for small cells located
within the right-of-way.
The terms of the franchise agreement with Verizon Wireless include these new
design standards and more broadly, attempt to balance the desire to embrace new
technology with the need to address the safety and aesthetic concerns this
technology raises. At the same time, it is the City’s intention that these terms to be
flexible enough to accommodate the 5G equipment that is still being developed.
Because small cell technology and the legal landscape surrounding it will continue
to evolve, the franchise term was set for five years. Additionally, the franchise
includes terms governing the relocation of small cell facilities to accommodate
public improvements; requirements for the franchisee to keep detailed records of
its facilities; and stiff penalties for the installation of unauthorized facilities.
BUDGET IMPACT: None
SUPPORTS STRATEGIC PLAN GOAL:
Thriving City, Innovative Government
ATTACHMENTS:
1. Exhibit A to Verizon Small Cell Franchise (PDF)
2. Exhibit B to Verizon Small Cell Franchise (PDF)
3. Verizon - Small Cell Franchise Ordinance - FINAL (PDF)
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SHEET NUMBER:
SHEET TITLE:
SITE INFORMATION:
CONCEPTUALNODEDESIGN
REV. DATE: ISSUED FOR:
DRAWN BY: CHECKED BY:
md7 PROJECT NUMBER:
PLANS PREPARED BY:
R
POLYGON:
VZW TYPICAL
INSTALLATIONS
POLYGON
verizon
DP-CTM
TYPICALDISTRIBUTION POLECANISTER TOP MOUNTEDExistingProposed
Wood Utility Pole
VZW Typical Installations - #DP-CTM
(Distribution Pole - Canister Top Mounted)
Elevation Profile
SMALL CELL CANISTER
ANTENNA ON POLE BASE
MOUNT
REPLACEMENT WOOD UTILITY POLE
NOTE:
POLE ATTACHMENTS (ELEC. AND COMM.
TO BE RELOCATED TO NEW POLE)
CONDUIT (COAX)
CONDUIT (POWER)
FIBER LINE
DISCONNECT BOX
RRU ENCLOSURE
(BRACKET WITH SHROUD)
NOTE:
EQUIPMENT ENCLOSURE IS
APPROXIMATELY 12 CUBIC FEET
IN VOLUME
EXISTING DISTRIBUTION LINES
(STREET SIDE)
RF NOTICE & SITE ID SIGNAGE
(3) 2FT PANEL ANTENNAS
NOTE:
ANTENNA DIMENSIONS MAY
VARY BUT WILL NOT EXCEED
3 CUBIC FEET IN VOLUME
*NOTE: POLE HEIGHT MAY VARY.
NEUTRAL LINE
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SHEET NUMBER:
SHEET TITLE:
SITE INFORMATION:
CONCEPTUALNODEDESIGN
REV. DATE: ISSUED FOR:
DRAWN BY: CHECKED BY:
md7 PROJECT NUMBER:
PLANS PREPARED BY:
R
POLYGON:
VZW TYPICAL
INSTALLATIONS
POLYGON
verizon
DP-PAMP
Existing Proposed
Wood Utility Pole
VZW Typical Installations - #DP-PAMP
(Distribution Pole - Panel Antenna Mid Pole)
Elevation Profile
TYPICALDISTRIBUTION POLECANISTER SIDE MOUNTED
REPLACEMENT WOOD UTILITY POLE
NOTE:
POLE ATTACHMENTS (ELEC. AND COMM.
TO BE RELOCATED TO NEW POLE)
CONDUIT (COAX)
CONDUIT
(POWER)
FIBER LINE
DISCONNECT BOX
RRU ENCLOSURE
(BRACKET WITH SHROUD)
NOTE:
EQUIPMENT ENCLOSURE IS
APPROXIMATELY 12 CUBIC FEET
IN VOLUME
EXISTING DISTRIBUTION LINES
(STREET SIDE)
RF NOTICE & SITE ID SIGNAGE
(3) 2FT PANEL ANTENNAS
NOTE:
ANTENNA DIMENSIONS MAY
VARY BUT WILL NOT EXCEED
3 CUBIC FEET IN VOLUME
*NOTE: POLE HEIGHT MAY VARY.
NEUTRAL LINE
(2) 2FT PANEL ANTENNAS
NOTE:
ANTENNA DIMENSIONS MAY
VARY BUT WILL NOT EXCEED
3 CUBIC FEET IN VOLUME
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SHEET NUMBER:
SHEET TITLE:
SITE INFORMATION:
CONCEPTUALNODEDESIGN
REV. DATE: ISSUED FOR:
DRAWN BY: CHECKED BY:
md7 PROJECT NUMBER:
PLANS PREPARED BY:
R
POLYGON:
VZW TYPICAL
INSTALLATIONS
POLYGON
verizon
NOTE:
POLE ATTACHMENTS (ELEC. AND
COMM. TO BE RELOCATED TO
NEW POLE)
CONDUIT (COAX)
CONDUIT (POWER)
CONDUIT (FIBER)
EXISTING CONDUIT
EXISTING TRANSMISSION
LINES
EXISTING DISTRIBUTION LINES
(STREET SIDE)
EXISTING WOOD UTILITY POLE
TYPICALTRANSMISSION POLE -CANISTER SIDE MOUNTEDExistingProposed
Wood Utility Pole
VZW Typical Installations - #TP-PAMP
(Transmission Pole - Panel Antenna Mid Pole)
Elevation Profile
DISCONNECT BOX
RRU ENCLOSURE
(BRACKET WITH SHROUD)
NOTE:
EQUIPMENT ENCLOSURE IS
APPROXIMATELY 12 CUBIC FEET IN
VOLUME
RF NOTICE & SITE ID SIGNAGE
(3) 2FT PANEL ANTENNAS
NOTE:
ANTENNA DIMENSIONS MAY
VARY BUT WILL NOT EXCEED
3 CUBIC FEET IN VOLUME
*NOTE: POLE HEIGHT MAY VARY.
NEUTRAL LINE
TP-PAMP
(2) 2FT PANEL ANTENNAS
NOTE:
ANTENNA DIMENSIONS MAY
VARY BUT WILL NOT EXCEED
3 CUBIC FEET IN VOLUME
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{ERZ1744692.DOCX;2/00085.080011/ }
EXHIBIT B
STATEMENT OF ACCEPTANCE
Seattle SMSA Limited Partnership, dba Verizon Wireless 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 _______________, 201_, before me the undersigned, a Notary
Public in and for the State of _________________, duly commissioned and sworn,
personally appeared, __________________ of Seattle SMSA Limited Partnership,
dba Verizon Wireless, 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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1 Small Cell Franchise Agreement--
Verizon Wireless
ORDINANCE NO.
AN ORDINANCE of the City Council of the
City of Kent, Washington, granting to Seattle SMSA
Limited Partnership, dba Verizon Wireless, and its
affiliates, successors and assigns, the right,
privilege, authority and nonexclusive franchise for
five years, to construct, maintain, operate, replace
and repair a small cell telecommunications
network, in across, over, along, under, through and
below certain designated public rights-of-way of
the City of Kent, Washington.
RECITALS
A. Seattle SMSA Limited Partnership, dba Verizon Wireless, (the
“Franchisee”) has requested that the City Council grant it a nonexclusive
franchise (this “Franchise”) to construct, maintain, operate, repair, upgrade,
remove, replace and restore small cell networks in the City’s right-of-way;
and
B. 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.
C. Small cell facilities are relatively new technology deployed by
wireless providers to meet the evolving needs of consumers and their
increased reliance upon mobile devices. To meet demand, wireless
infrastructure must continue to be upgraded and improved.
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2 Small Cell Franchise Agreement--
Verizon Wireless
D. In contrast to the familiar cell phone towers and monopoles,
small cells are low-powered and low profile wireless base stations that
function like cells in a mobile wireless network and typically cover localized
(smaller) areas. Wireless providers use small cells to provide connectivity in
areas where the coverage and capacity of traditional cell towers are
challenged by terrain or buildings and they also use small cells to provide
enhanced capacity to users (e.g., more data, more quickly). Because they
are smaller, small cells are often mounted to existing structures within the
right-of-way, such as utility poles and light poles.
E. Small cell facilities and networks will also be integral to the
deployment of the next generation of wireless service, known as “5G” or “5th
Generation.” Wireless providers and the Federal Communications Commission
claim that 5G will provide additional capacity in existing networks for
emergency service, increased data use, telecommuting, and the support of
Internet of Things applications.
F. The City embraces and supports small cell technology and the
advances the City expects it to provide, yet also has a fundamental role to
manage the rights-of-way fairly for the residents and tax-payers and protect
the City’s significant investments of time, resources and money in
construction, design standards and undergrounding of utilities.
G. In order to balance the deployment of new technology with the
City’s role to manage the rights-of-way, this franchise includes robust, yet
flexible design standards for the small cells. It also includes requirements to
keep a detailed record of small cell installations, relocation requirements and
penalties for unauthorized installations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
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3 Small Cell Franchise Agreement--
Verizon Wireless
ORDINANCE
SECTION 1. - Definitions. In addition to terms otherwise defined
herein, the following definitions shall apply generally to the provisions of
this Franchise.
1.1 “Director” means the Public Works Director, the Economic and
Community Development Director, or his/her designee.
1.2 “Rights-of-Way” (singular “Right-of-Way”) as used in this Franchise,
means the surface of, and the space above and below, any public street,
highway, freeway, bridge, land path, alley, court, boulevard, sidewalk,
way, lane, public way, drive, circle, pathways, spaces, or other public
right-of-way, and over which the City has authority to grant permits,
licenses or franchises for use thereof, or has regulatory authority
thereover. Rights-of-Way for the purpose of this Franchise do not include
railroad right-of-way, airports, harbor areas, buildings, parks, poles,
conduits, open spaces, nature trails, dedicated but un-opened right-of-
way, undedicated streets and/or right-of-way, environmentally sensitive
areas and any land, facilities, or property owned, maintained, or leased by
the City in its governmental or proprietary capacity or as an operator of a
utility.
1.3 “Small Cell Equipment” or “Small Cell Facilities” means Wireless
Telecommunications Facilities attached, mounted, or installed on a
proprietary or leased pole, excluding monopole towers, that is located in
Right-of-Way and used to provide “personal wireless service” as defined in
Title 47, United States Code, Section 332(c)(7)(C), including all future
amendments and is substantially similar in aesthetics and proportion to
those pictured in Exhibit A.
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4 Small Cell Franchise Agreement--
Verizon Wireless
1.4 “Utility Pole” means a pole or vertical structure owned by a utility
company or other third party with the right either pursuant to state law or
a franchise to place such facilities in the Right-of-Way. An “Original Utility
Pole” is a pole that has not been replaced to accommodate Small Cell
Facilities, but that is capable of accommodating Small Cell Facilities. A
“Replacement Utility Pole” means a pole that replaces an Original Utility
Pole to accommodate Small Cell Facilities and does not result in an
increase in the total number of Utility Poles. Each reference to a Utility
Pole herein includes any Original Utility Pole and any Replacement Utility
Pole.
SECTION 2. – Franchise Granted.
2.1 Pursuant to RCW 35A.47.040, the City of Kent, a Washington
municipal corporation (“City”), hereby grants to Franchisee, its successors,
legal representatives and assigns, subject to the terms and conditions set
forth below, a non-exclusive Franchise for a period of five (5) years
beginning on the effective date of this ordinance, set forth in Section 48.
2.2 This Franchise ordinance grants Franchisee the right, privilege, and
authority to construct, operate, maintain, replace, relocate, restore,
upgrade, remove, excavate, acquire, and use the Small Cell Facilities, as
defined in Section 1.3, for its telecommunications network, in, under, on,
across, over, through, along or below the public Rights-of-Way located in
the City of Kent, as approved pursuant to City codes and permits issued
pursuant to this Franchise. This Franchise does not authorize the
installation of any ground mounted equipment anywhere within the
Rights-of-Way.
2.3 This Franchise shall not prevent the City from granting franchises
in, along, over, through, under, below, or across any Rights-of-Way. This
Franchise shall not prevent or prohibit the City from using any Rights-of-
6.c
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Way or affect its jurisdiction over any Rights-of-Way or any part of Rights-
of-Way. The City shall retain power to make all necessary changes,
relocations, repairs, maintenance, establishment, improvement, dedication
of Right-of-Way as the City deems fit, including the dedication,
establishment, maintenance, and improvement of all new Rights-of-Way,
thoroughfares, and other public properties of every type and description.
SECTION 3. - Grant of Authority Limited.
3.1 The authority granted by this Franchise is a limited authorization to
occupy and use the Rights-of-Way throughout the City (the “Franchise
Area”). The Franchisee is authorized to place its Facilities in the Rights-of-
Way only consistent with this Franchise, the City of Kent Zoning Code, the
Comprehensive Plan, the Area Design and Construction Standards and the
Kent Municipal Code (collectively the “Codes”). 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 telecommunications services. Franchisee hereby warrants that it
expects to provide the following services within the City: small cell
network consisting of a collection of interrelated Small Cell Facilities
designed to deliver personal wireless services (the “Services”). Services
do not include personal wireless services and associated facilities that fall
outside of the definition of Small Cell Facilities (i.e., macro facilities).
3.2 This Franchise does not grant Franchisee the right to install and
operate wires and facilities to provide wireline broadband transmission
services, whether provided by a third party provider, Franchisee, or a
corporate affiliate of Franchisee. Any entity that provides such wireline
broadband transmission services must have an independent franchise to
use the Rights-of-Way outside of this Franchise. Further, this Franchise
does not grant the right to offer cable internet services or Cable Services
as those terms are defined in 47 U.S.C. § 522(6) by wireline transmission.
6.c
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3.3 This Franchise does not grant Franchisee the 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 or in any City, public or privately owned
poles or conduits.
3.4 Nothing within this Franchise shall be construed to grant or convey
any right, title, or interest in the Rights-of-Way of the City to Franchisee
other than for the purpose of providing the Services, or to subordinate the
primary use of the Right-of-Way as a public thoroughfare.
3.5 If Franchisee desires to expand the Services provided within the
City, it shall request a written amendment to this Franchise. If Franchisee
desires to use City owned property, including poles and structures within
the Rights-of-Way it shall enter into a separate lease or license agreement
with the City.
3.6 Franchisee shall have the right, without prior City approval, to lease
the Facilities, grant a right of user interest in the Facilities or any portion
thereof or offer or provide capacity or bandwidth to its lessees or
customers consistent with this Franchise provided:
a. Franchisee at all times retains exclusive control over its
telecommunications system, 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;
c. Such customer or lessee shall not be construed to be a third-
party beneficiary under this Franchise; and
6.c
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d. No such customer or lessee may use the telecommunications
system or Services for any purpose not authorized by this
Franchise, nor to sell or offer for sale any service to the
citizens of the City without all required business licenses,
franchise or other form of state wide approval.
SECTION 4. - Location of Facilities.
4.1 Franchisee may locate its Facilities anywhere within the Franchise
Area consistent with the City’s Design and Construction Standards and
area design and construction standards and subject to the City’s applicable
Code requirements. Franchisee shall not be required to amend this
Franchise to construct or acquire Facilities within the Franchise Area,
provided that Franchisee does not expand its Services beyond those
described in Section 3.1.
4.2 To the extent that any Rights-of-Way within the Franchise Area are
part of the state highway system (“State Highways”) and are governed by
the provisions of chapter 47.24 RCW and applicable Washington State
Department of Transportation (“WSDOT”) regulations, Franchisee shall
comply fully with these requirements in addition to local ordinances and
other applicable regulations. Without limitation of the foregoing,
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
6.c
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8 Small Cell Franchise Agreement--
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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 5. - Relocation of Small Cell Facilities.
5.1 Relocation Requirement. Franchisee agrees to protect, support,
temporarily disconnect and then reconnect, relocate, or remove from any
Rights-of-Way any of its Facilities when reasonably required by the City by
reason of traffic conditions, public safety, dedications of new Rights-of-
Way, the establishment and improvement of new Rights-of-Way, widening
or improvement of existing Rights-of-Way or both, street vacations,
freeway construction, change or establishment of street grade, or the
construction of any public improvement or structure by any governmental
agency acting in a governmental capacity or as otherwise necessary for
the operations of the City or other governmental entity. Collectively, such
matters are referred to within this Franchise with the term “Public
Improvement.”
5.2 Relocation. If the request for relocation from the City arises from a
Public Improvement, in which structures or poles are either replaced or
removed, then Franchisee shall relocate or remove its Facilities as required
by the City, and at no cost to the City, subject to the procedure in Section
5.4. Franchisee acknowledges and agrees that the placement of Small
Cell Facilities on third-party owned or City owned structures does not
convey an ownership interest in such structures. Franchisee acknowledges
and agrees, that to the extent Franchisee’s Small Cell Facilities are on
poles owned by third parties, the City shall not be responsible for any
costs associated with requests for relocation which the City makes solely
for aesthetic purposes and where such request arises out of a Public
Improvement.
6.c
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5.3 Locate. Upon written request of the City, or a third party
performing work in the Right-of-Way, and in order to facilitate the design
of City street and Right-of-Way improvements, Franchisee agrees, at its
sole cost and expense, to locate, and if determined necessary by the City,
to excavate and expose its Facilities for inspection so that the Facilities’
location may be taken into account in the improvement design. The
decision as to whether any Facilities need to be relocated in order to
accommodate the Public Improvement shall be made by the City upon
review of the location and construction of Franchisee’s Facilities. The City
shall provide Franchisee at least fourteen (14) calendar days’ written
notice prior to any excavation or exposure of Facilities. Franchisee shall
be responsible for any delays due to failure to locate its Facilities when
requested, except that Franchisee shall not be responsible for delays or
damages due to circumstances beyond the control of the Franchisee.
5.4 Notice and Relocation Process. If the City determines that the
project necessitates the relocation of Franchisee’s existing Facilities, the
City shall:
a. At least ninety (90) calendar days prior to commencing the
project, provide Franchisee with written notice requiring such
relocation and a date by which relocation must be complete;
provided, however, that in the event of an emergency
situation, defined for purposes of this Franchise as a condition
posing an imminent threat to property, life, health, or safety
of any person or entity, the City shall give Franchisee written
notice as soon as practicable; and
b. At least ninety (90) calendar days prior to commencing the
project, provide Franchisee with copies of pertinent portions
of the plans and specifications for the improvement project
and a proposed location for Franchisee’s Facilities so that
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Franchisee may relocate its Facilities in other City Rights-of-
Way in order to accommodate such improvement project;
and
c. After receipt of such notice and such plans and specifications,
Franchisee shall complete relocation of its Facilities consistent
with the date for relocation established in accordance with
this Section 5.4(a) at no charge or expense to the City,
except as otherwise provided by law. Relocation shall be
accomplished in such a manner as to accommodate the Public
Improvement.
5.5 Alternative Arrangements. The Franchisee may make its own
appropriate arrangements in response to a request for relocation of its
Facilities from a person or entity other than the City, so long as any
improvements being constructed are not or will not become City-owned,
operated or maintained; except that any such arrangements shall not
unduly delay a City construction project.
5.6 Contractor Delay Claims. Franchisee shall be solely responsible for
the out-of-pocket costs incurred by the City for delays in a Public Project
to the extent the delay is caused by or arises out of Franchisee's failure to
comply with the final schedule for the relocation (other than as a result of
a Force Majeure Event or causes or conditions caused by the acts or
omissions of the City or any third party unrelated to Franchisee;
Franchisee vendors and contractors shall not be considered unrelated third
parties). Such out-of-pocket costs may include, but are not limited to,
payment to the City's contractors and/or consultants for increased costs
and associated court costs, interest, and reasonable attorneys' fees
incurred by the City to the extent directly attributable to such Franchisee’s
caused delay in the Public Project.
6.c
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5.7 Indemnification. Franchisee will indemnify, hold harmless, and pay
the costs of defending the City, in accordance with the provisions of
Section 22.
5.8 Moving of Buildings or Other Objects. Franchisee shall, on the
request of any individual or private entity holding a valid permit issued by
a governmental authority, temporarily remove, raise or lower its Facilities
to permit the moving of buildings or other objects. The expense of such
temporary removal, raising or lowering of Facilities shall be at the expense
of the requestor.
5.9 City’s Costs. If Franchisee fails, neglects, or refuses to remove or
relocate its Facilities as directed by the City following the procedures
outlined in this Section 5, the City may perform such work or cause it to
be done, and the City’s costs shall be paid by Franchisee pursuant to
Sections 15.3 and 15.4.
5.10 Survival. The provisions of this Section 5 shall survive the
expiration or termination of this Franchise during such time as Franchisee
continues to have Facilities in the Rights-of-Way.
SECTION 6. - Undergrounding of Facilities.
6.1 No installation of Small Cell Facilities in Undergrounded Areas.
Franchisee shall not install Small Cell Facilities in areas that already have
undergrounding of aerial utilities, except as authorized by the Director and
in compliance with any Kent construction standards. Any Facilities so
located shall be approved by the Director and if such Facilities include the
installation of a new pole or installation on a City-owned pole, Franchisee
shall be required to enter into a separate agreement with the City for such
installations.
6.c
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6.2 Requirement to Remove Small Cell Facilities. Franchisee hereby
acknowledges and agrees that whenever the City requires the
undergrounding of the aerial utilities in any area of the City, which
includes the removal of structures (e.g., Utility Poles) in the Rights-of-
Way, Franchisee will also be required to remove or relocate its Facilities
from such structures within the timeframe set for such undergrounding
project. If the aerial utilities are required to be undergrounded,
Franchisee’s grant of permission for Small Cell Facilities on Utility Poles in
that area will be automatically revoked upon removal of these Utility
Poles. Franchisee may re-install any Small Cell Facilities only as
authorized by the Director and in compliance with any Kent Construction
Standards, unless otherwise approved by the Director. Installation of new
poles shall require a site specific separate agreement pursuant to chapter
35.99 RCW.
6.3 Survival. The provisions of this Section 6 shall survive the
expiration, revocation, or termination of this Franchise. Nothing in this
Section 6 shall be construed as requiring the City to pay any costs of
undergrounding any of the Franchisee’s Facilities.
SECTION 7. - Information, Inventory and Records.
7.1 Information Request.
a. Franchisee shall supply and maintain updated, at no cost to
the City, any information reasonably requested by the City to
coordinate its functions with the Franchisee’s activities and
fulfill any municipal functions under state law. This required
information may include, but is not limited to, any installation
inventory, location of existing or planned Facilities, maps,
plans, operational data, and as-built drawings of Franchisee’s
6.c
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Facilities in the City. Franchisee shall warrant the accuracy of
all information provided to the City.
b. Within thirty (30) calendar days of a written request from the
Director, but in no event more than once annually, 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
utility 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.
7.2 Current Inventory.
a. Franchisee shall maintain a current inventory of Small Cell
Facilities throughout the Term of this Franchise. Franchisee
shall provide to City a copy of the inventory report no later
than one hundred eighty (180) calendar days after the
Effective Date of this Franchise, and an updated inventory
report shall be provided by December 31 of each year and
within thirty (30) calendar days of a reasonable request by
the City. The inventory report shall include GIS coordinates,
date of installation, type of pole used for installation,
description/type of installation for each Small Cell Facility
installation and photographs taken before and after the
installation of the Small Cell Facility and taken from the public
street.
b. Small Cell Facilities that are considered Deactivated Facilities,
as described in Section 24.1, shall be included in the
inventory report and Franchisee shall provide the same
information as is provided for active installations as well as
6.c
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14 Small Cell Franchise Agreement--
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the date the Facilities were deactivated and the date the
Deactivated Facilities were removed from the Right-of-Way.
The City shall compare the inventory report to its records to
identify any discrepancies, and the parties will work together
in good faith to resolve any discrepancies. Franchisee is not
required to report on future inventory reports any
Deactivated Facilities which were removed from the Right-of-
Way since the last reported inventory and may thereafter
omit reference to the Deactivated Facilities. Franchisee shall
keep the City reasonably informed of its long-range plans for
coordination with the City’s long-range plans.
7.3 Inspection. All books, records, maps, and other documents
maintained by Franchisee with respect to its Facilities within the Rights-of-
Way shall be made available for inspection by the City at reasonable times
and intervals; except that nothing in this Section 7.3 shall be construed to
require Franchisee to violate state or federal law regarding customer
privacy, nor shall this Section 7.3 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 7.3
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
Numbers, or Employer Identification Numbers related to any
confidentiality agreements Franchisee has with third parties.
7.4 Public Records Act.
a. Franchisee acknowledges that information submitted to the
City is subject to the Washington Public Records Act, chapter
6.c
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42.56 RCW, and is open to public inspection, subject to any
exceptions permitted by law (i.e., unless an exemption
applies).
b. Franchisee may identify documents submitted to the City that
Franchisee believes are non-disclosable, such as trade
secrets. Franchisee shall be responsible for clearly and
conspicuously identifying the work as confidential 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. The City agrees
to keep confidential any proprietary or confidential books or
records to the extent permitted by law.
c. If the City receives a public records request under chapter
42.56 RCW or similar law for the disclosure of the documents
or any part of the documents Franchisee has designated as
confidential, trade secret, or proprietary, the City shall
provide Franchisee with written notice of the request,
including a copy of the request prior to disclosure so that
Franchisee can take appropriate steps to protect its interests.
Nothing in this Section 7.4 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 will not assert an exemption from disclosure or
production on Franchisee’s behalf.
d. The City shall comply with any injunction or court order
obtained by Franchisee that prohibits the disclosure of any
such confidential records. If a higher court overturns an
6.c
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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 within forty-five (45) calendar
days of a request from the City, unless additional time is
reasonably necessary under the circumstances and is agreed
to by the parties.
7.5 Annual Audit. On an annual basis, upon thirty (30) calendar 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, in accordance with GAAP.
If the audit shows that tax or fee payments have been underpaid by three
percent (3%) or more, Franchisee shall pay the total cost of the audit.
SECTION 8. - Work in the Rights-of-Way.
8.1 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 and only after obtaining permits pursuant
to Section 8.3. Franchisee shall 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 traffic
control to warn and direct the road users. Traffic control devices include
but are not limited to barricades, traffic cones, traffic drums, tubular
markers, flags, certified flaggers, lights, flares, and other measures as
required for the safety of all members of the general public. Franchisee
shall also 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 requirement of
trench safety systems for trench excavations. The provisions of this
Section 8.1 shall survive the expiration or termination of this Franchise
6.c
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and during such time as Franchisee continues to have Facilities in the
Rights of Way.
8.2 Franchisee shall, at its own expense, maintain its Facilities in a safe
condition, in good repair, and in a manner 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. The provisions of this Section 8.2 shall survive the expiration of
this Franchise during such time as Franchisee continues to have Facilities
in the Rights-of-Way.
8.3 Whenever Franchisee shall commence work in any Rights-of-Way
for the purpose of excavation, installation, construction, repair,
maintenance, or relocation of its Facilities, it shall apply to the City for a
permit to do so. During the progress of the 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 and
warranted for a period of two (2) years. In no case shall any work
commence within any Rights-of-Way without a permit, except as
otherwise provided in this Franchise.
8.4 If either the City or Franchisee plans to make excavations in any
area covered by this Franchise and as described in this Section 8.4, the
party planning such excavation shall afford the other an opportunity to
share such excavation, PROVIDED THAT:
a. The joint use shall not unreasonably delay the work of the
party causing the excavation to be made;
b. The joint use shall be arranged and accomplished on terms
and conditions satisfactory to both parties; and
6.c
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c. The initiating party may deny such request for safety
reasons.
8.5 Upon prior written notice from the City, Franchisee shall meet with
the City and other franchise holders to schedule and coordinate
construction in the Rights-of-Way. To minimize public inconvenience,
disruption or damage, the Franchisee shall coordinate all construction
locations, activities, and schedules as reasonably directed by the City.
8.6 Franchisee acknowledges that it shall be solely responsible for
compliance with all marking and lighting requirements of the FAA and the
FCC with respect to Franchisee’s Facilities. Franchisee shall indemnify,
defend and hold the City harmless from any fines or other liabilities caused
by Franchisee’s failure to comply with these requirements. Should
Franchisee or the City be cited by either the FCC or the FAA because the
Facilities or 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 elect any or all of
the following remedies: (1) cure the conditions of noncompliance at
Franchisee’s expense, and collect all reasonable costs from Franchisee in
accordance with the provisions of Section 15.3 and Section 15.4; (2)
collect damages pursuant to Section 28.2; or (3) revoke this Franchise
pursuant to Section 27. Franchisee shall not be liable for any claims,
damages or liability resulting from City’s acts in effecting the cure on
behalf of Franchisee.
SECTION 9. – Trees.
9.1 Franchisee may trim trees upon and overhanging on Rights-of-Way,
streets, alleys, sidewalks, and other public places of the City so as to
prevent the branches of any such trees from coming in contact with
Franchisee’s Facilities. The right to trim trees in this Section 9.1 only
6.c
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applies to the extent necessary to protect above ground Facilities.
Franchisee shall avoid unnecessary trimming of trees and vegetation in
the vicinity of its Facilities and shall avoid damaging any trees or
vegetation. Franchisee shall ensure that its tree trimming activities
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.
9.2 Upon the written request of the Director, Franchisee shall prepare
and maintain a tree trimming schedule to ensure compliance with this
Section 9.2 and to avoid exigent circumstances where tree cutting,
trimming, or removal is necessary to protect the public safety or continuity
of service. Franchisee shall submit the tree trimming schedule to the
Director. Franchisee shall notify and obtain written approval from the
City, which shall not be unreasonably withheld, delayed or conditioned,
before completing any trimming, except in an emergency.
9.3 All tree trimming shall be completed at the expense of Franchisee.
Franchisee may contract for such services, however, City approval is
required prior to commencing such trimming, which shall not be
unreasonably withheld, delayed or conditioned. Nothing in this Franchise
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 in an emergency, all tree trimming must be performed
under the direction of an arborist certified by the International Society of
Arboriculture, unless otherwise approved by the Director.
9.4 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 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.
6.c
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Franchisee shall reasonably compensate the City or the property owner for
any damage caused by trimming, damage, or removal by Franchisee.
SECTION 10. - One Call Locator Service.
Prior to doing any work in the Rights-of-Way, 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 by the City or a third party, 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 11. - Safety Requirements.
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-Way, 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
6.c
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Administration (OSHA) Standards. The City reserves the general right to
inspect the Facilities to evaluate if they are constructed and maintained in
a safe condition.
11.2 If an unsafe but non-emergent 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 condition. If Franchisee fails to start
to make the necessary repairs and alterations within a reasonable 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 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 Sections 15.3 and 15.4.
11.3 Additional safety standards include:
a. Franchisee shall endeavor to maintain all Facilities in an
orderly manner, including, but not limited to, the placement
of any cables connecting equipment in an orderly manner.
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. The Franchisee shall at all times protect any opening or
obstruction in the Rights-of-Way or other public places made
by Franchisee in the course of its operations 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.
6.c
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11.4 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 reasonably 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 under which work may be resumed.
SECTION 12. - Work of Contractors and Subcontractors.
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 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. – Restoration after Construction.
13.1 Franchisee shall repair any damage to the Rights-of-Way, and the
property of any third party, after installation, construction, relocation,
maintenance, or repair of its Facilities or after abandonment approved
pursuant to Section 24, within thirty (30) days following the date of any of
these activities at Franchisee’s sole cost and expense. Franchisee shall
6.c
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restore the Rights-of-Way and the surface of the Rights-of-Way to the
same or better condition as it was immediately prior to any installation,
construction, relocation, maintenance or repair by Franchisee, reasonable
wear and tear excepted. Franchisee shall not be responsible for any
changes to the Rights-of-Way not caused by Franchisee or anyone doing
work for Franchisee. No survey monument may be removed (or replaced)
without a professional land surveyor obtaining a permit in advance from
the Washington State Department of Natural Resources and submitting a
copy of the approved permit to the City. Franchisee shall restore all
concrete encased monuments that will be disturbed or displaced by such
work to City standards and specifications. The Director shall have final
approval of the condition of the Rights-of-Way after repair or restoration
by the Franchisee.
13.2 Franchisee agrees to complete all restoration 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 and warranted for a period of
two (2) years and for undiscovered defects as is standard and customary
for this type of work.
13.3 If conditions (e.g., weather) make the complete restoration required
under this Section 13 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 shall promptly
undertake and complete the required permanent restoration when
conditions no longer make such permanent restoration impracticable.
13.4 If Franchisee does not repair a Right-of-Way or an improvement in
or to a Right-of-Way within the reasonable time agreed to by the Public
Works Director, or his/her designee, the City may repair the damage and
6.c
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shall be reimbursed its actual cost within sixty (60) calendar days of
submitting an invoice to Franchisee in accordance with the provisions of
Section 15.3 and Section 15.4. In addition, and pursuant to Section 15.3
and 15.4, 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 28.2.
13.5 The provisions of this Section 13 shall survive the expiration or
termination of this Franchise so long as Franchisee continues to have
Facilities in the Rights-of-Way and has not completed all restoration to the
City’s standards.
SECTION 14. - Emergency Work/Dangerous Conditions.
14.1 In the event of any emergency in which any of Franchisee’s
Facilities located in the Rights-of-Way breaks, falls, becomes damaged, or
if Franchisee’s Facilities is otherwise in such a condition as to immediately
endanger the property, life, health or safety of any person, entity or the
City, 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 any person, entity or the
City 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 on the next day Kent City Hall is
open for business.
14.2 The City retains the right and privilege to cut, move or remove any
Small Cell Facilities located within the Rights-of-Way of the City, as the
City may determine to be necessary, appropriate or useful in response to
6.c
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any public health or safety emergency, including the knockdown of a
Utility Pole with Small Cell Facilities.
14.3 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 the gross negligence or
willful acts 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 14 except
to the extent caused by the gross negligence or willful acts of the City, its
employees, contractors, or agents.
14.4 Whenever the construction, installation or excavation of Facilities
authorized by this Franchise has caused or 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. If the 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 access the
Facilities 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
6.c
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precautions, and Franchisee shall be liable to the City for the costs
thereof.
14.5 Franchisee shall promptly reimburse the City in accordance with the
provisions of Section 15.3 and Section 15.4 for any and all costs the City
reasonably incurs in response to any emergency situation involving
Franchisee’s Facilities, to the extent the emergency is not the fault of the
City. The City agrees to simultaneously seek reimbursement from any
franchisee or permit holder who caused or contributed to the emergency
situation.
SECTION 15. - Recovery of Costs, Taxes and Fees.
15.1 The City may charge 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 and processing this Franchise.
No permits shall be issued for the installation of any Facilities until such
time as the City has received payment of this fee.
15.2 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 costs and expenses for
review, inspection, or supervision of activities, including but not limited to
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 15.3.
15.3 Franchisee shall reimburse the City within sixty (60) calendar days
of submittal by the City of an itemized billing for reasonably incurred
costs, itemized by project, for Franchisee’s proportionate share of all
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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 Rights-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
Rights-of-Way as the result of the presence of Franchisee’s Facilities in the
Rights-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.
15.4 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 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 the billing. At the City’s option, the billing may be on an
annual basis, but the City shall provide the Franchisee with the City’s
itemization of costs, in writing, at the conclusion of each project for
information purposes.
15.5 Franchisee hereby warrants 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 35.99.010. 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
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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.
15.6 Franchisee acknowledges that certain of its operations within the
City constitute a telecommunication business subject to the utility tax
imposed pursuant to chapter 3.18 of the Kent City Code. Franchisee
stipulates and agrees that certain of its business activities are subject to
taxation as a telecommunication business and that Franchisee shall pay to
the City the rate applicable to such taxable services under chapter 3.18 of
the Kent City Code, 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 chapter 3.18 of the
Kent City Code as may be permitted by law.
SECTION 16. - Small Cell Facilities – Approvals and Permits.
16.1 City Retains Approval Authority. The City shall have the authority
at all times to control by appropriately exercised police powers through
ordinance or regulation, consistent with 47 U.S.C. § 253, 47 U.S.C. §
332(c)(7) and the laws of the State of Washington, the location, elevation,
manner of construction, and maintenance of any Small Cell Facilities by
Franchisee, and Franchisee shall promptly conform with all such
requirements, unless compliance would cause Franchisee to violate other
requirements of law. This Franchise does not prohibit the City from
exercising its rights under federal, state or local law to deny or give
conditional approval to an application for a permit to construct any
individual Small Cell Facility.
6.c
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16.2 City Approvals and Permits. The granting of this Franchise is not a
substitute for any other City required approvals to construct Franchisee’s
Facilities in the Rights-of-Way (“City Approvals”). The parties agree that
such City Approvals (except Right-of-Way use permits as described in
Section 8.3) are not considered use permits, as that term is defined in
RCW 35.99.010. These City Approvals do not grant general authorization
to enter and utilize the Rights-of-Way but rather grant Franchisee
permission to build its specific Small Cell Facilities. Therefore City
Approvals are not subject to the thirty (30) day issuance requirement
described in RCW 35.99.030. The parties recognize that this provision is
specifically negotiated as consideration for designating the entire City as
the Franchise Area. Such City Approvals shall be issued consistent with
the Codes, state and federal laws governing wireless communication
facility siting and shall be in addition to any permits required under
Section 8.3. This Section does not affect the thirty (30) day issuance
requirement described in RCW 35.99.030 required for use permits such as
Right-of-Way use permits and traffic control permits.
SECTION 17. – Design Standards. Franchisee shall construct its
Facilities consistent with the concealment or stealth requirements as
described or shown in the Kent City Code, any Kent Construction
Standards, this Franchise and in the applicable permit(s), in order to
minimize the visual impact of such Facilities. These requirements are
intended and stipulated to be concealment features when considering
whether a proposed modification is a substantial change under Section
6409(a) of the Spectrum Act, 47 U.S.C. § 1455(a). These requirements
are intended to be used solely for the purpose of concealment and siting.
Nothing shall be interpreted or applied in a manner which dictates the use
of a particular technology. When strict application of these standards or
requirements would unreasonably impair the function of the technology
chosen by the applicant, alternative forms of concealment or deployment
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may be permitted which provide similar or greater protections from
negative visual impacts to the streetscape.
SECTION 18. – Unauthorized Facilities. Any Small Cell Facilities
installations in the City Right-of-Way that were not authorized under this
Franchise or other required City Approval or were installed substantially
out of compliance with the concealment or stealth requirements as
described or shown in the Kent City Code, any Kent Construction
Standards, this Franchise and in the applicable permit(s) (“Unauthorized
Facilities”), will be subject to the payment of an Unauthorized Facilities
charge by Franchisee. City shall provide written notice to Franchisee of
any Unauthorized Facilities identified by City staff and Franchisee shall
have thirty (30) calendar days thereafter in which to establish that this
installation was authorized or obtain the applicable permit. Failure to
establish that the installation is authorized will result in the imposition of
an Unauthorized Facilities charge in the amount of One Thousand Dollars
($1,000.00) per Unauthorized Facility per day starting on the thirty-first
(31st) day. Franchisee may submit an application to the City under this
Franchise for approval of the Unauthorized Facilities. If the application for
the Unauthorized Facilities is not approved, Franchisee shall remove the
Unauthorized Facilities from the City’s Right-of-Way within thirty (30)
calendar days after the expiration of all appeal periods for such denial.
The City shall not refund any Unauthorized Facilities charges, unless
Franchisee is successful in an appeal. This Franchise remedy is in addition
to any other remedy available to the City at law or equity.
SECTION 19. - Graffiti Abatement. As soon as practical, but not
later than fourteen (14) days from the date Franchisee receives written
notice or is otherwise aware, Franchisee shall remove all graffiti on any of
its Small Cell Facilities in which it is the owner of the pole or structure or
on the Small Cells Facilities themselves attached to a third-party pole
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(e.g., graffiti on the shrouding protecting the radios). The foregoing shall
not relieve Franchisee from complying with any City graffiti or visual blight
ordinance or regulation.
SECTION 20. - Emissions Reports.
20.1 Franchisee is obligated to comply with all laws relating to allowable
presence of or human exposure to Radiofrequency Radiation ("RFs") or
Electromagnetic Fields ("EMFs") on or off any poles or structures in the
Rights-of-Way, including all applicable FCC standards as now or hereafter
adopted, whether such RF or EMF presence or exposure results from the
Small Cell Facility alone or from the cumulative effect of the Small Cell
Facility added to all other sources on or near the specific pole or structure.
20.2 Franchisee must provide to the City a copy of the report (the
“Emissions Report”) from a duly qualified engineer analyzing whether RF
and EMF emissions at the proposed Small Cell Facility locations would
comply with FCC General Population standards. Franchisee may provide
one standard Emissions Report which certifies that a standard Small Cell
configuration (including power output, elevation of antennas above ground
level, number of antennas) complies with FCC standards for its entire
deployment, provided that the configuration of its Facilities remains
identical (“Master Emissions Report”). Franchisee shall provide multiple
Master Emissions Reports if it deploys different configurations within the
City. All applications for Small Cells shall certify that the configuration is
the same as or emits less emissions than the design in the standard
Emissions Report. If an installation differs from the standard report as
being more intrusive, then Franchisee will be required to provide a
customized Emissions Report for such Small Cell installation. If not
provided earlier as part of a Master Emissions Report, Franchisee must
submit the Emissions Report to the City with the applicable Small Cell
Permit application. Further, following any subsequent modification to a
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Small Cell Facility that materially alters the configuration of such Small
Cell Facility, Franchisee shall, at its own cost and expense, perform an RF
emissions test following such modification to validate that the Small Cell
Facilities once modified comply with the FCC standards.
20.3 If the City discovers that the emissions from a Facility exceeds the
FCC standards, then the City may order Franchisee to immediately turn off
the Facility or portion thereof committing the violation, until the emissions
exposure is remedied.
20.4 If Small Cell Facilities have already been installed by the Franchisee
or other entities within the vicinity of a proposed Small Cell Facility,
Franchisee shall provide an Emissions Report for the proposed Facility that
includes the cumulative effects of all of these already existing Facilities.
SECTION 21. – No Interference.
21.1 Interference with Public Facilities. Franchisee’s Small Cell Facilities
shall not interfere with any City operations (including, but not limited to,
traffic lights, radio systems, or other City communications infrastructure),
or PSERN (or its successor entity) communications operation or
equipment. If the City reasonably determines that the Small Cell Facilities
cause such interference, Franchisee shall respond to the City’s request to
address the source of the interference as soon as practicable, but in no
event later than forty-eight (48) hours of receipt of written notice. The
City may require, by written notice, that Franchisee cease operation of the
specific Small Cell Facilities causing such interference and either modify,
remove or relocate such Small Cell Facilities. If, within ten (10) calendar
days after receipt of such written notice from the City of such interference,
Franchisee has not abated such interference, such Small Cell Facility may
be deemed an Unauthorized Facility and subject to the provisions of
Section 18.
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21.2 Interference with Other Facilities. Franchisee is solely responsible
for determining whether its Small Cell Facilities interfere with
telecommunications facilities of utilities and franchisees existing within the
Rights-of-Way prior to Franchisee’s installation. Franchisee shall comply
with the rules and regulations of the Federal Communications Commission
regarding radio frequency interference when siting its Small Cell Facilities
within the Franchise Area. Franchisee, in the performance and exercise of
its rights and obligations under this Franchise shall not physically or
technically interfere in any manner with the existence and operation of
any and all existing utilities, sanitary sewers, water mains, storm drains,
gas mains, poles, aerial and underground electrical and telephone wires,
electroliers, cable television, and other telecommunications, utility, or
municipal property, without the express written approval of the owner or
owners of the affected property or properties.
SECTION 22. – Indemnification.
22.1 General Indemnification. Franchisee shall indemnify, defend, and
hold the City, its officers, officials, boards, commissions, agents, and
employees, harmless from any action or claim for injury, damage, loss,
liability, cost or expense, including court and appeal costs and reasonable
attorneys' fees or reasonable expenses, arising from any casualty or
accident to person or property, including, without limitation, damages in
any way arising out of, or by reason of, any construction, excavation,
operation, maintenance, reconstruction, or any other act done under this
Franchise, by or for Franchisee, its agents, or its employees, or by reason
of any neglect or omission of Franchisee. Franchisee shall consult and
cooperate with the City while conducting its defense of the City under this
Franchise. Franchisee shall not be obligated to indemnify the City to the
extent of the City’s negligence or willful misconduct.
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22.2 Indemnification for Radio Frequency Emissions or Radiation.
Franchisee shall also indemnify, defend and hold harmless the City, its
officers, employees, agents, volunteers and representatives from any and
all claims, costs, judgments, awards or liability to any person arising from
radio frequency emissions or radiation emitted from Franchisee’s Facilities
located in the Rights-of-Way, regardless of whether Franchisee’s
equipment complies with applicable federal statutes and/or FCC
regulations related thereto. 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.
22.3 Indemnification for Relocation. Franchisee shall defend, indemnify,
and hold the City harmless for any damages, claims, additional costs or
reasonable expenses and attorneys’ fees, including contractor construction
delay damages, assessed against or payable by the City and arising out of
or resulting from Franchisee's failure to remove, adjust, or relocate any of
its Facilities in the Rights-of-Way in accordance with any relocation
required by the City, provided that Franchisee shall not be liable under this
section in the event Franchisee’s failure to remove, adjust or relocate any
of its Facilities is the result of a force majeure event or events beyond the
control of Franchisee.
22.4 Avoidance.
a. 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 22.
b. The fact that Franchisee carries out any activities under this
Franchise through independent contractors shall not constitute
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an avoidance of or defense to Franchisee's duty of defense
and indemnification under this subsection.
22.5 Procedures and Defense. If a claim or action arises, the City or any
other indemnified party shall promptly notify Franchisee of such claim or
action and tender the defense of the claim or action to Franchisee, which
defense shall be at Franchisee’s expense. The 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. The City may participate
in the defense of a claim, but if Franchisee provides a defense at
Franchisee’s expense then Franchisee shall not be liable for any attorneys’
fees, expenses, or other costs the City may incur if it chooses to
participate in the defense of a claim, unless and until separate
representation as described in Section 22.6 is required. In that event, the
provisions of Section 22.6 shall govern Franchisee’s responsibility for City’s
attorney’s fees, expenses, or other costs. In any event, Franchisee may
not agree to any settlement of claims affecting the City without the City's
consent, such consent not to be unreasonable withheld or delayed.
22.6 Payment of fees and costs.
a. If 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 costs and fees incurred in
recovering under this indemnification provision.
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b. If separate representation to fully protect the interests of
both parties is or becomes necessary, such as a conflict of
interest between the City and the counsel selected by
Franchisee to represent the City, Franchisee shall pay, from
the date such separate representation is required forward, all
reasonable expenses incurred by the City in defending itself
with regard to any action, suit, or proceeding subject to
indemnification by Franchisee. Provided, however, that in the
event that such separate representation is or becomes
necessary, and the City desires to hire counsel or any other
outside experts or consultants and desires Franchisee to pay
those expenses, then the City shall be required to obtain
Franchisee’s consent to the engagement of such counsel,
experts, or consultants, such consent not to be unreasonably
withheld. The City's expenses shall include all reasonable out
of pocket costs and expenses, such as consultants' fees and
court costs, but shall not include outside attorneys’ fees for
services that are unnecessarily duplicative of services
provided the City by Franchisee, except in the event of a
conflict of interest where such duplication may be required.
Each party agrees to cooperate and to cause its employees
and agents to cooperate with the other party in the defense
of any claim or action.
22.7 RCW 4.24.115. Should a court of competent jurisdiction
determine that this Franchise is subject to RCW 4.24.115, then, 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 the Franchisee and the City, its officers, officials, employees,
and volunteers, the Franchisee’s liability hereunder shall be only to the
extent of the Franchisee’s negligence. It is further specifically and
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expressly understood that the indemnification provided herein constitutes
the Franchisee's waiver of immunity under Industrial Insurance, Title 51
RCW, solely for the purposes of this indemnification. This waiver has been
mutually negotiated by the parties. The provisions of this section shall
survive the expiration or termination of this Franchise.
22.8 Assumption of Risk. Notwithstanding any other provisions of this
Section 22, 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 the sole negligence or
the willful or criminal actions of the City, its officers, agents, employees,
volunteers, or elected or appointed officials, or contractors. 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 gross negligence or
any willful misconduct on the part of the City, its officers, agents,
employees, volunteers, or elected or appointed officials, or contractors.
22.9 Survival. The provisions of this Section 22 shall survive the
expiration, revocation, or termination of this Franchise.
6.c
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SECTION 23. - Insurance.
23.1 Insurance Limits. Franchisee shall maintain in full force and effect
at its own cost and expense each of the following policies of insurance:
a. Commercial General Liability insurance with limits of Five
Million Dollars ($5,000,000.00) per occurrence and Five
Million Dollars ($5,000,000.00) general aggregate. Coverage
shall be at least as broad as that provided by the ISO Form or
its equivalent and include severability of interests. Such
insurance shall include the City, its officers, officials and
employees as additional insureds as their interest may
appear under this Agreement per ISO Form or its equivalent.
There shall be a waiver of subrogation and rights of recovery
against the City, its officers, officials and employees.
Coverage shall apply as to claims between insureds on the
policy, if applicable;
b. Commercial Automobile Liability insurance with combined
single limits of Five Million Dollars ($5,000,000.00) each
accident for bodily injury and property damage with respect
to each of Franchisee’s owned, hired and non-owned vehicles
assigned to or used in the operation of the Facilities in the
City;
c. Workers’ Compensation coverage or qualified self insurance
as required by the Industrial Insurance laws of the State of
Washington and employer’s liability with limits of One Million
Dollars ($1,000,000.00) each accident/disease/policy limit.
23.2 Deductibles/Certificate of Insurance. Any deductible of the policies
shall not in any way limit Franchisee’s liability to the City.
23.3 Endorsements. All required liability policies shall:
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a. Except workers compensation and employer’s liability include
The City, its officers, officials, boards, commissions, and
employees, additional insureds as their interest may appear
under this Agreement with respect to liability arising out of
activities performed by Franchisee under this Franchise or
Applicable Law, or in the construction, operation or repair, or
ownership of the Cable System;
b. Franchisee's required insurance coverage shall be primary
insurance with respect to the City, its officers, officials,
boards, commissions and employees. Any insurance or self-
insurance maintained by the City, its officers, officials,
boards, commissions and employees shall be in excess of the
Franchisee's required insurance and shall not contribute to it;
and
c. Franchisee's required insurance shall apply separately to each
insured against whom a claim is made or lawsuit is brought,
except with respect to the limits of the insurer’s liability.
d. Notwithstanding the forgoing, Licensee may, in its sole
discretion, self-insure any of the required insurance under the
same terms as required by this Agreement. In the event
Licensee elects to self-insure its obligation under this
Agreement to include Licensor as an additional insured, the
following conditions apply: (i) Licensor shall promptly and no
later than sixty (60) calendar days after notice thereof
provide Licensee with written notice of any claim, demand,
lawsuit, or the like for which it seeks coverage pursuant to
this Section and provide Licensee with copies of any
demands, notices, summonses, or legal papers received in
connection with such claim, demand, lawsuit, or the like; (ii)
Licensor shall not settle any such claim, demand, lawsuit, or
the like without the prior written consent of Licensee; and (iii)
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Licensor shall fully cooperate with Licensee in the defense of
the claim, demand, lawsuit, or the like.
23.4 Acceptability of Insurers. The insurance obtained by Franchisee
shall be placed with insurers with a Best’s rating of no less than “A minus
VII."
23.5 Verification of Coverage. The Franchisee shall furnish the City with
(a) certificates of insurance and (b) blanket additional insured
endorsements. The certificates and endorsements for each insurance
policy are to be signed by an authorized representative of the insurer.
The certificates and endorsements for each insurance policy are to be on
standard forms or such forms as are consistent with standard industry
practices.
23.6 Maintenance of Insurance. Franchisee’s maintenance of insurance
as required by this Section 23 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 equity. Further,
Franchisee’s maintenance of insurance policies required by this Franchise
shall not be construed to excuse unfaithful performance by Franchisee.
SECTION 24. - Abandonment of Franchisee’s Telecommunications
Network.
24.1 Where any Facilities or portions of Facilities are no longer needed
and their use is to be discontinued, the Franchisee shall immediately
report such Facilities in writing (“Deactivated Facilities”) to the Public
Works Director. This notification is in addition to the inventory revisions
addressed in Section 7.2. Deactivated Facilities, or portions thereof, shall
be completely removed within ninety (90) days and the site, pole or
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infrastructure restored to its pre-existing condition, reasonable wear and
tear and damage by casualty excepted.
24.2 If Franchisee leases a structure from a landlord and such landlord
later abandons the structure, for example by building a replacement
structure, Franchisee shall remove or relocate its Facilities as soon as
possible but no later than ninety (90) calendar days of such written
notification from the landlord, at no cost to the City.
24.3 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 ninety (90) calendar days of receiving written notice
from the Director. 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 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 (reasonable wear and tear and damage
by casualty excepted), provided Franchisee shall not be responsible for
any changes to the Rights-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.
24.4 Notwithstanding Section 24.3, the City may permit Franchisee’s
Facilities 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 City, Franchisee shall submit to
the City a proposal and instruments for transferring ownership to the City.
6.c
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24.5 Any Facilities which are not removed within one hundred and eighty
(180) calendar days of either the date of termination or revocation of this
Franchise 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 24.5 shall prevent the City from compelling Franchisee to
remove any such Facilities through judicial action when the City has not
permitted Franchisee to abandon these Facilities in place.
24.6 The provisions of this Section 24 shall survive the expiration,
revocation, or termination of this Franchise and for so long as Franchisee
has Facilities in Rights-of-Way.
SECTION 25. - Bonds.
25.1 Construction Guarantee. As a condition of performing work in the
Right-of-Way, the timely, complete, and faithful performance of all
construction work in the Right-of-Way shall be guaranteed in an amount
equal to one hundred twenty-five percent (125%) of the cost estimate
(prepared by a licensed contractor, professional engineer, or architect) of
the construction work. The guarantee may be by performance bond or
irrevocable letter of credit. If Franchisee, in the sole judgment of the City,
has a history of corrections or defaults, Franchisee must provide the full
guarantee by assignment of funds. These funds 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
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with the work that could be asserted against the City or City property.
The guarantee 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 25.2.
Compliance with the performance guarantee requirement of the City’s
current Design and Construction Standards shall satisfy the provisions of
this Section 25.1.
25.2 Maintenance Bond. Maintenance and the successful operation of
the Right-of-Way improvements shall be bonded for a period of at least
two (2) years (or other period as required by Kent City Code) from the
date of final construction approval. The bond shall be in an amount to be
determined by the City. The minimum maintenance guarantee shall be
Five Thousand Dollars ($5,000.00) or twenty percent (20%) of the original
performance construction guarantee as described in Section 25.1,
whichever is greater. At six (6)-month intervals during this maintenance
period, the City will inspect the improvements and identify to Franchisee
any noted deficiencies. Franchisee will have thirty (30) days to correct
any deficiencies. The satisfactory correction of the work may commence a
new two (2)-year maintenance period for the improvements as corrected,
as determined by the City. The City will initiate collection against the
financial guarantee if deficiencies are not satisfactorily addressed by the
end of the thirty (30)-day response period. Compliance with the
maintenance guarantee requirement of the City’s current Design and
Construction Standards shall satisfy the provisions of this Section 25.2.
Original financial guarantee amounts described in Section 25.1 and
Section 25.2 above may be reduced one time only prior to the
maintenance period, at the discretion of the City. If an extension to any
associated permits are granted, the financial guarantees may be increased
6.c
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based on an updated engineer’s cost estimate or as determined by the
City. Financial guarantees will be fully released only after all final punch
list items are accomplished, final construction approval, and the elapse of
the two (2)-year maintenance guarantee period with all corrective actions
complete and accepted by the City.
25.3 Franchise Bond. Franchisee shall provide the 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 the City. If Franchisee fails to
substantially comply with any one or more of the provisions of this
Franchise, following written 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 the 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. Franchisee specifically agrees that its failure
to comply with the terms of this Section 25 shall constitute a material
breach of this Franchise, subject to the notice and cure provisions of
Section 28. Franchisee further agrees to replenish the Franchise Bond
within fourteen (14) calendar days after written notice from the City that
there is a deficiency in the amount of the Franchise Bond. The amount of
the Franchise 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.
25.4 Form of Bonds. All bonds provided to the City under this Section 25
shall be on a form provided by the City and with sureties registered with
the Washington State Insurance Commissioner or other financial
institutions acceptable to the City.
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SECTION 26. - Modification. The City and Franchisee hereby
reserve the right to alter, amend, or modify the terms and conditions of
this Franchise upon written agreement of both parties to such alteration,
amendment or modification.
SECTION 27. - Revocation. If Franchisee willfully violates or fails
to comply with any material provisions of this Franchise, then at the
election of the City Council after at least thirty (30) calendar days written
notice to Franchisee specifying the alleged violation or failure, or such
extended periods as may be required beyond the thirty (30) day cure
period to cure any violation if the nature of the cure is such that it
reasonably requires more than thirty (30) days to cure, the City may
revoke all rights conferred and this Franchise may be revoked by the City
Council after a hearing held upon such notice to Franchisee. 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. Within thirty (30) calendar days after the hearing,
the 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 should otherwise be imposed.
The 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 City Council does not grant any
additional period, the 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.
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SECTION 28. - Remedies to Enforce Compliance.
28.1 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. 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.
28.2 If Franchisee 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 to Franchisee under the provisions of this Franchise, the City
shall provide Franchisee with written notice specifying with reasonable
particularity the nature of any such breach and Franchisee shall undertake
all commercially reasonable efforts to cure such breach within thirty (30)
calendar days of receipt of notification. If the parties reasonably
determine the breach cannot be cured within (30) thirty days, the City
may specify a longer cure period, and condition the extension of time on
Franchisee'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 Franchisee does not comply with
the specified conditions, the City may, at its sole discretion, (1) revoke
6.c
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this Franchise with no further notification, or (2) claim damages of Two
Hundred Fifty Dollars ($250.00) per day against the Franchise Bond set
forth in Section 25.3, or (3) pursue other remedies as described in this
Section 28. Liquidated damages described in this Section 28.2 shall not
be offset against any sums due to the City as a tax or reimbursement
pursuant to Section 15.6.
SECTION 29. - Non-Waiver. The failure of the City 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 30. - Police Powers and City Ordinances. Nothing herein
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 this Franchise, including any valid ordinance made in the
exercise of its 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
reasonably control by appropriate regulations the location, elevation,
manner of construction and maintenance of Facilities by Franchisee, and
Franchisee shall promptly conform with all such regulations unless
compliance would cause Franchisee to violate other requirements of law.
In the event of a conflict between the provisions of this Franchise and any
other generally applicable ordinance(s) enacted under the City’s police
power authority, such other ordinances(s) shall take precedence over the
provisions set forth herein.
SECTION 31. - Cost of Publication. The cost of publication of this
Franchise shall be borne by Franchisee.
6.c
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SECTION 32. - Acceptance. Franchisee shall execute and return to
the City its execution and acceptance of this Franchise in the form
attached hereto as Exhibit B. In addition, Franchisee shall submit proof of
insurance obtained and additional insured endorsement pursuant to
Section 23, any Construction Guarantee, if applicable, pursuant to Section
25.1 and the Franchise Bond required pursuant to Section 25.3. The
administrative fee pursuant to Section 15.1 is due within thirty (30) days
of receipt of the invoice from the City.
SECTION 33. - Survival. All of the provisions, conditions, and
requirements of Section 5, Section 6, Section 8, Section 13, Section 22,
and Section 24 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 34. - Assignment.
34.1 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 approved in
writing by the City, which approval shall not be unreasonably withheld,
conditioned or delayed. The above notwithstanding, Franchisee may
freely assign this Franchise in whole or in part to a parent, subsidiary, or
affiliated entity or for collateral security purposes. Franchisee shall
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provide prompt, written notice to the City of any such assignment. In the
case of transfer or assignment as security by mortgage or other security
instrument in whole or in part to secure indebtedness, such consent shall
not be required unless and until the secured party elects to realize upon
the collateral. For purposes of this Section 34, 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.
Any transactions which singularly or collectively result in a change of fifty
percent (50%) or more of the ownership or working control (for example,
management of Franchisee or its Telecommunications facilities) of the
Franchisee or of the ownership or working control of the Franchisee's
Telecommunications facilities within the City, or of the ownership or working
control having ownership or working control of the Franchisee or of the
Franchisee's Telecommunications facilities within the City, or of 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. 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.
34.2 Franchisee’s obligation to remain fully responsible for compliance
with the terms under this Section 34 shall survive the expiration of this
Franchise but only if and to the extent and for so long as Franchisee is still
the owner or has exclusive control over the Facilities used by a third party.
SECTION 35. - Extension. If this Franchise expires without
renewal, the City may, subject to applicable law either allow Franchisee to
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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 order the removal of any
and all Facilities at Franchisee’s sole cost and expense consistent with
Section 24.3.
SECTION 36. - Entire Agreement. 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 37. - Eminent Domain. 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 38. - Vacation. 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. The City shall notify the Franchisee in writing not less than
sixty (60) calendar days before vacating all or any portion of any such
area. The City may, after sixty (60) calendar days’ written notice to the
Franchisee, terminate this Franchise with respect to such vacated area.
SECTION 39. - Notice. 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:
//
//
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If to Licensee (including
invoices):
Seattle SMSA Limited Partnership,
dba Verizon Wireless
(City of Kent) (WA)
d/b/a Verizon Wireless
Attn: Network Real Estate
180 Washington Valley Road
Bedminster, New Jersey 07921
with an additional copy to:
With a copy to:
Seattle SMSA Limited Partnership
d/b/a Verizon Wireless
Attn: Pacific Market General Counsel
15505 Sand Canyon Avenue
Irvine, CA 92618
If to Licensor:
CITY OF KENT
Attn: City Clerk
220 Fourth Avenue South
Kent, WA 98032
SECTION 40. - Severability. If any section, sentence, clause or
phrase of this Franchise 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 Franchise unless such invalidity or
unconstitutionality materially alters the rights, privileges, duties, or
obligations hereunder, in which event either party may request
renegotiation of those remaining terms of this Franchise materially
affected by such court’s ruling.
SECTION 41. - Compliance with All Applicable Laws. Franchisee
agrees to comply with all present and future federal, state and local laws,
ordinances, rules and regulations, except to the extent that the Franchisee
has a vested right in accordance with the vested rights doctrine under
Washington case law or as codified at RCW 19.27.095. This Franchise is
subject to ordinances of general applicability enacted pursuant to the
City’s police powers. Franchisee shall, at its own expense, maintain its
Facilities in a safe condition, in good repair and in a manner suitable to the
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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 upon providing Franchisee with
thirty (30) calendar days written notice of its action setting forth the full
text of the amendment and identifying the statute, regulation, or
ordinance requiring the amendment. This 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, City may enact the proposed amendment,
by incorporating Franchisee's concerns to the maximum extent City deems
possible.
SECTION 42. - Attorneys’ Fees. 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 43. - Hazardous Substances. 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
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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 associated with
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 44. - Licenses, Fees and Taxes. Prior to constructing any
improvements, 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 45. - Miscellaneous.
45.1 City and Franchisee respectively represent that its signatory is duly
authorized and has full right, power and authority to execute this
Franchise.
45.2 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 King County Superior Court, without waiver of any right to removal.
45.3 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.
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45.4 Where the context so requires, the singular shall include the plural
and the plural includes the singular.
45.5 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.
45.6 This Franchise may be enforced at both law and equity.
SECTION 46. – Severability. If any one or more section,
subsection, or sentence of this ordinance is held to be unconstitutional or
invalid, such decision shall not affect the validity of the remaining portion
of this ordinance and the same shall remain in full force and effect.
SECTION 47. – Corrections by City Clerk or Code Reviser. Upon
approval of the city attorney, the city clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering;
or references to other local, state, or federal laws, codes, rules, or
regulations.
SECTION 48. – Effective Date. This ordinance shall take effect and
be in force thirty days from and after its passage, as provided by law.
DANA RALPH, MAYOR Date Approved
//
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//
//
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ATTEST:
KIMBERLEY A. KOMOTO, CITY CLERK Date Adopted
Date Published
APPROVED AS TO FORM:
_______
ARTHUR “PAT” FITZPATRICK, CITY ATTORNEY
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OPERATIONS COMMITTEE
Derek Matheson, Chief Administrative Officer
220 Fourth Ave S
Kent, WA 98032
256-856-5712
DATE: August 20, 2019
TO: Operations Committee
SUBJECT: Municipal Court Ordinance KCC 2.34 - Repeal and Reenact
MOTION: Recommend Council repeal and reenact Chapter 2.34 of the Kent City
Code relating to the establishment and operations of the Kent Municipal Court.
SUMMARY:
The Kent Municipal Court was established in accordance with Chapter 3.50 RCW,
which provides a municipal court structure which may be used by cities with a
population of four hundred thousand (400,000) or less. The Kent Municipal Court
began operations on January 1, 1994.
The Washington Court Rules are established by the Washington Supreme Court and
govern numerous aspects of court operations and procedures. Included within the
Washington Court Rules are the Rules of General Application (“GR”). GR 29 was
adopted by the Washington Supreme Court in 2002, and requires a municipal court
with more than one judge to establish a procedure by local court rule for the judges
to elect a presiding judge. GR 29 also sets forth judicial and administrative duties
of the presiding judge that cannot be delegated to persons in either the legislative
or executive branches of government.
Chapter 2.34 of the Kent City Code sets forth Kent’s laws regarding the
establishment and administration of the Kent Municipal Court. Chapter 2.34 KCC
has not been amended since the Supreme Court’s adoption of GR 29. In addition,
the current Chapter 2.34 KCC contains numerous provisions that originally mirrored
Chapter 3.50 RCW. However, since the adoption of Chapter 2.34 KCC, many
provisions of Chapter 3.50 RCW have been amended, and like amendments have
not made to Chapter 2.34 KCC.
It is necessary to amend portions of Chapter 2.34 KCC to better align the chapter
with the requirements of GR 29 and the current version of Chapter 3.50 RCW. Due
to the extensive nature of the amendments, Chapter 2.34 KCC is being repealed in
its entirety, and reenacted.
The repeal and reenactment of Chapter 2.34 KCC is primarily a housekeeping
measure, and will not change the daily operations at the Kent Municipal Court.
7
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BUDGET IMPACT: None
SUPPORTS STRATEGIC PLAN GOAL:
Thriving City, Innovative Government
ATTACHMENTS:
1. KMC 2.34 Ordinance - Repeal and Replace - 051619 (PDF)
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1 Repeal and Adopt
Ch. 2.34 KCC Municipal Court
ORDINANCE NO.
AN ORDINANCE of the City Council of the
City of Kent, Washington, repealing Chapter 2.34 of
the Kent City Code relating to the Kent Municipal
Court, and enacting a new Chapter 2.34 relating to
the Kent Municipal Court.
RECITALS
A. The Kent Municipal Court was established in accordance with
Chapter 3.50 RCW, which provides a municipal court structure which may
be used by cities with a population of four hundred thousand (400,000) or
less. The Kent Municipal Court began operations on January 1, 1994.
B. The Washington Court Rules are established by the Washington
Supreme Court and govern numerous aspects of court operations and
procedures. Included within the Washington Court Rules are the Rules of
General Application (“GR”).
C. GR 29 was adopted by the Washington Supreme Court in 2002,
and requires a municipal court with more than one judge to establish a
procedure by local court rule for the judges to elect a presiding judge. GR
29 also sets forth judicial and administrative duties of the presiding judge
that cannot be delegated to persons in either the legislative or executive
branches of government.
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2 Repeal and Adopt
Ch. 2.34 KCC Municipal Court
D. Chapter 2.34 of the Kent City Code sets forth Kent’s laws
regarding the establishment and administration of the Kent Municipal Court.
Chapter 2.34 KCC has not been amended since the Supreme Court’s
adoption of GR 29. In addition, the current Chapter 2.34 KCC contains
numerous provisions that originally mirrored Chapter 3.50 RCW. However,
since the adoption of Chapter 2.34 KCC, many provisions of Chapter 3.50
RCW have been amended, and like amendments have not made to Chapter
2.34 KCC.
E. It is necessary to amend portions of Chapter 2.34 KCC to better
align the chapter with the requirements of GR 29 and the current version of
Chapter 3.50 RCW. Due to the extensive nature of the amendments,
Chapter 2.34 KCC is being repealed in its entirety, and reenacted.
F. The repeal and reenactment of Chapter 2.34 KCC is primarily a
housekeeping measure, and will not change the daily operations at the Kent
Municipal Court.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. - Repeal. Chapter 2.34 of the Kent City Code, entitled
“Municipal Court,” is hereby repealed in its entirety.
SECTION 2. - New Chapter. A new Chapter 2.34 of the Kent City
Code, entitled “Municipal Court,” is hereby enacted as follows:
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3 Repeal and Adopt
Ch. 2.34 KCC Municipal Court
Chapter 2.34
MUNICIPAL COURT
Sec. 2.34.010. Municipal court established. Effective January 1,
1994, and pursuant to Chapter 3.50 RCW, there is established “The
Municipal Court of the City of Kent,” hereinafter referred to as the “municipal
court.”
Sec. 2.34.020. Jurisdiction – Pleading, practice and procedure
– References to state law.
A. The municipal court shall have the jurisdiction and shall exercise all
powers enumerated in Chapter 3.50 RCW and the Kent City Code, together
with all such other powers and jurisdiction as are generally conferred upon
courts of limited jurisdiction in the state of Washington either by common
law, statutes, regulations, city code provisions, or rules established by the
Washington Supreme Court.
B. Matters and subjects regarding the municipal court not addressed in
this chapter shall be controlled and governed by Chapter 3.50 RCW as well
as common law, statutes, regulations, city code provisions, or rules
established by the Washington Supreme Court.
C. All references to state laws in this chapter are references to the laws
as now enacted or hereafter amended or recodified.
Sec. 2.34.030. Court seal. The municipal court shall have a seal
which shall be the vignette of George Washington, with the words “Seal of
the Municipal Court of Kent, State of Washington,” surrounding the vignette.
Sec. 2.34.040. Judges – Election – Appointment –
Qualifications.
A. The municipal court shall have two (2) full-time elected judicial
positions titled “Position I” and “Position II.” Position I was filled by election
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4 Repeal and Adopt
Ch. 2.34 KCC Municipal Court
with the term beginning January 1, 2002. Position II was filled by election
with the term beginning on January 1, 2006. Each position is filled for a term
of four (4) years. Elections required by this section shall be conducted in
accordance with RCW 3.50.050.
B. A municipal court judge may, in accordance with RCW 3.50.093 and
RCW 3.50.095, be appointed by the mayor to fill an existing judicial position
in the event a vacancy occurs due to the death, disability, resignation,
retirement, or removal. Additional municipal court judges may be appointed
by the mayor in accordance with RCW 3.50.070 when public interest and
the administration of justice makes such additional judge or judges
necessary.
C. A person elected or appointed as municipal court judge shall be a
citizen of the United States of America, a resident of King County, and an
attorney admitted to practice law before the courts of record of the state of
Washington.
D. Every judge of the municipal court, before entering upon the duties
of the office, shall take and subscribe the following oath or affirmation: "I
do solemnly swear (or affirm) that I will support the Constitution of the
United States and the Constitution of the State of Washington, and that I
will faithfully discharge the duties of the office of judge of the municipal court
of the city of Kent according to the best of my ability." No bond shall be
required for the faithful performance of the judge’s duties.
Sec. 2.34.050. Municipal judge salary – Costs. The city will
automatically adjust the salary paid to the Kent municipal court judges who
meet the requirements of RCW 2.56.030(22) to an amount equal to 95
percent of the salary of district court judges as set by the Washington
Citizens’ Commission on Salaries for Elected Officials. The Kent municipal
court judge salary adjustments required of this section shall be effective on
a date commensurate with the effective date of adjustments to the salaries
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5 Repeal and Adopt
Ch. 2.34 KCC Municipal Court
of district court judges made by the Washington Citizens’ Commission on
Salaries for Elected Officials.
Sec. 2.34.060. Judges pro tem – Court commissioners. A judge
pro tem or commissioner appointed in accordance with RCW 3.50.075 or
RCW 3.50.090 shall receive compensation at the rate of sixty dollars
($60.00) per hour unless modified by resolution or ordinance. The term of
the appointment shall be specified in writing but in any event shall not
extend beyond the term of the elected municipal judges.
Sec. 2.34.070. Court Administrator. There is hereby created the
position of court administrator who shall be in charge of the administrative
functions of the municipal court subject to the powers vested upon the
municipal court judge pursuant to Chapter 3.50 RCW or court rule. The court
administrator shall be appointed by and report directly to the presiding
judge.
Sec. 2.34.080. Municipal court hours. The municipal court shall
be open during all regular business days and hours as the other offices of
the city shall be open, but the dates and times of open court shall be set by
the presiding judge; provided, that the municipal court shall not be open on
non-judicial days.
Sec. 2.34.090. Juror Fees. Jurors shall be paid a fee of $15 for
each day in attendance at the municipal court and shall receive a mileage
allowance pursuant to RCW 43.03.060.
Sec. 2.34.100. Inmate participation in programs. Any person
sentenced by the municipal court for a commitment or period of confinement
at the Kent corrections facility, and who serves such commitment or
confinement at the Kent corrections facility, may, pursuant to Kent
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Ch. 2.34 KCC Municipal Court
corrections facility policies, be eligible for corrections facility programs or
incarceration alternatives as set forth in Ch. 9.34 KCC; provided, the
municipal court may, in its sound discretion, prohibit the inmate from
participating in one (1) or more programs or incarceration alternatives. The
court shall state its reason(s) for limiting program consideration on the
record. Upon the motion of any party and for good cause shown,
reconsideration of eligibility or prohibition from programs may be argued
before the court.
Sec. 2.34.110. Use of credit cards. The municipal court may
permit the use of credit cards for purposes of billing and collecting unpaid
penalties, fines, costs, assessments, and forfeitures imposed. The municipal
court may enter into agreements with one (1) or more financial institutions
for the purpose of such collections. Said agreements may specify conditions,
remuneration for services, and other charges deemed appropriate, upon
confirmation by the city council.
Sec. 2.34.120. Use of collections agencies and attorneys.
A. The municipal court may use collection agencies as defined in Chapter
19.16 RCW for purposes of collecting unpaid penalties on infractions,
criminal fines, costs, assessments, civil judgments, or forfeitures that have
been imposed by the court. The municipal court may enter into agreements,
with the confirmation of the city council, with one (1) or more attorneys or
collection agencies for collection of outstanding penalties, fines, costs,
assessments, and forfeitures. These agreements may specify the scope of
work, remuneration for services, and other charges deemed appropriate.
B. Servicing of delinquencies by collection agencies or by collecting
attorneys in which the municipal court retains control of its delinquencies
shall not constitute assignment of debt.
C. The term debt shall include penalties, fines, costs, assessments, or
forfeitures imposed by the municipal court.
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7 Repeal and Adopt
Ch. 2.34 KCC Municipal Court
D. The municipal court may assess, as court costs, the monies paid for
remuneration for services or charges paid to collecting attorneys, to
collection agencies, or, in the case of credit cards, to financial institutions.
Sec. 2.34.130. Revenue deposits. All fees, costs, fines,
forfeitures, and other monies imposed or collected by the municipal court
for the violation of any city ordinance, together with any other revenue
received by the municipal court, shall be deposited with the city treasurer
as part of the general fund of the city unless otherwise required by law.
SECTION 3. – Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
decision shall not affect the validity of the remaining portion of this ordinance
and the same shall remain in full force and effect.
SECTION 4. – Corrections by City Clerk or Code Reviser. Upon
approval of the city attorney, the city clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering; or
references to other local, state, or federal laws, codes, rules, or regulations.
SECTION 5. – Effective Date. This ordinance shall take effect and be
in force thirty (30) days from and after its passage, as provided by law.
DANA RALPH, MAYOR Date Approved
ATTEST:
KIMBERLEY A. KOMOTO, CITY CLERK Date Adopted
Date Published
APPROVED AS TO FORM:
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Ch. 2.34 KCC Municipal Court
ARTHUR “PAT” FITZPATRICK, CITY ATTORNEY
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OPERATIONS COMMITTEE
Derek Matheson, Chief Administrative Officer
220 Fourth Ave S
Kent, WA 98032
256-856-5712
DATE: August 20, 2019
TO: Operations Committee
SUBJECT: Origami - Risk Management Information System Contract
MOTION: Recommend Council authorize the Mayor to enter into a three-year
agreement with Origami Risk LLC for a cloud-based Risk Management Information
System (RMIS), subject to final terms and conditions acceptable to the City
Attorney and Risk Manager.
SUMMARY:
The Risk Management division (RM) of the Human Resources Department is
responsible for managing Liability and Worker Compensation risks and claims
citywide and for the purchase of all city insurance. RM currently employs a third-
party administrator (TPA) to adjudicate these claims. Currently, RM must first
request claims data, then aggregate claims data in Excel, to analyze claims trends.
This is both time-consuming and can result in data input errors. Further, when
Public Records Requests (PRR) related to claims and lawsuits are received, it is
necessary to request downloads for data evaluation to properly respond. This
process can also be very time-consuming.
Origami Risk LLC can provide current dashboards to RM staff, which will increase
awareness of claims trends and will also provide performance measures based on
prior year performance, as well as other measures to be determined.
RM will have a schedule of automatically generated dashboards and reports to
Departments. These reports can be tailored to each Department based on specific
needs, including comparison of year over year claims trends in Liability and Worker
Comp claims frequency and severity. In addition to regular reporting of claims
information, RM will have the ability to more easily analyze data and provide
additional enhanced reporting to Departments.
Origami Risk LLC will also retain in an easily accessible format, vital information on
all of our insurance programs. This will aid in responding to Public Records Requests
and will also ensure proper reporting of claims to insurers and reinsurer as required
by insurance contracts.
The contract with Origami Risk LLC is for three years. Total cost over three years is
$127,570. The payment schedule is as follows:
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Year 1: $32,385 due at Contract signing, with additional $32,385 due 4 months
later.
Year 2: $31,400 due on Statement of Work anniversary.
Year 3: $31,400 due on subsequent Statement of Work anniversary.
BUDGET IMPACT: Cost of this program, as with all costs of risk, will be allocated
down to the Department/Division level within the Liability Insurance fund and the
Worker Compensation fund
(50/50).
SUPPORTS STRATEGIC PLAN GOAL:
Innovative Government, Sustainable Services
ATTACHMENTS:
1. 2019 Origami Software Subscrition Agreement 0814 (PDF)
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ORIGAMI RISK CoNrrneNrrrl
SOFTWARE SUBSCRIPTION AGREEMENT
This SOFTWARE SUBSCRIPTION AGREEMENT (this "Agreement") is entered into as of
2019 (the "Effective Date") by and between ORIGAMI RISK LLC, a Delaware limited liability company ("Origami"),
and City of Kent, Washington ("Client"). Origami and Client hereby agree as follows:
I. DEFINITIONS.
"Affïliate" means, with respect to a party, its parent
company and subsidiaries and/or controlled corporations or
entities which are directly or indirectly controlled by, or
under common control with, such party.
"Client Data" means the data provided or inputted
by or on behalf of Client or any User or Affiliate of Client
for use with the Service.
"Client Party" means Client and each of its
Affiliates and Users.
"Confidential Information" means all
confidential and proprietary information of a party,
including, without limitation, business plans, strategies,
products, software, source code, object code, clients, data
models, discoveries, inventions, developments, know-how,
improvements, works of authorship, concepts, or
expressions thereof, whether or not subject to patents,
copyright, trademark, trade secret protection or other
intellectual property right protection.
ooCustomizations" means specifically modified
reports, dashboard panels, or other configurations, features
or modules of the Service customized for Client.
"Documentation" means all user guides, videos,
embedded help text, and other reference materials generally
furnished with respect to the Service, whether in printed or
electronic format.
"Fees" means the fees payable pursuant to this
Agreement as set forth in any Statement of Work.
"Intellectual Property Rights" means worldwide
intellectual and proprietary property owned or properly
licensed by a party and all intellectual or proprietary
property rights subsumed therein, including copyright,
patent, trademark (including goodwill), trade dress, trade
secret and know-how rights.
"Professional Services" means professional
services provided by Origami to Client as set forth in any
Statement of Work.
"Service" means Origami's software-as-a-service
identified in the Statement of Work and accessible by Client
via https://live.OrigamiRisk.com or another designated web
site or IP address or mobile application, rendered to Client
by Origami.
"Statement of Work" means any statement of
work entered into and mutually approved in writing by the
parties pursuant to this Agreement from time to time. The
initial Statement of Work is attached hereto as Exhibit A,
and the pricing detail with respect to such Statement of
Work is attached hereto as Exhibit B.
'olJser" means any employee, contractor, agent,
customer, investor, consultant or service provider of Client
or any of Client's Affiliates who uses or accesses the
Service or any other person or entity that is provided user
credentials to the Service by or on behalfofClient or any of
Client's Affiliates.
"Work Product" means Customizations and any
software, programming, tools, documentation, and
materials that are used, created, developed, or delivered by
Origami to Client in connection with Customizations, and
all Intellectual Property Rights subsumed therein.
2. SERVICE.
(a) Service. Subject to the terms and
conditions of this Agreement, during the term of this
Agreement, Origami hereby grants Client a non-exclusive
right to permit its Users to access the Service via the
Internet. Client, its Affiliates and Users may use the Service
solely for internal business of Client, its Afflrliates and
Users. Users shall use the Service in accordance with this
Agreement and the applicable Statement of Work and
Documentation.
(b) Storage. Client may store Client Data
through the Service up to the amount set forth in the
applicable Statement of Work. If the amount of storage used
exceeds this limit, Client will be charged, on a monthly
basis, the excess storage fees pursuant to the Statement of
Work.
(c) Service Level Agreement. Origami's
Service Level Agreement with respect to the Service is set
forth as Exhibit C (the "Service Level Agreement"). Any
Excluded Event (as defined in such Service Level
Agreement) and any unavailability of the Service that does
not constitute a failure of the Availability Requirement set
forth in such Service Level Agreement shall not constitute
a breach of this Agreement.
(d) Restrictions. Nothing in this Agreement
shall be construed as a grant to Client of any right to, and
Client shall not, and shall not permit any User or any other
third party to: (i) reproduce, license, sublicense, sell, resell,
transfer, assign, distribute or otherwise commercially
exploit or make available to any third party the Service or
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ORIGAMI RISK
any portion thereof; (ii) distribute, disclose or allow use of
any of the Service, or any portion thereof, in any format,
through any timesharing service, service bureau, network or
by any other means, to or by any third party; (iii) decompile,
disassemble, or otherwise reverse engineer or attempt to
reconstruct or discover any source code or underlying ideas
or algorithms of the Service in any manner; (iv) create
derivative works from, modify or alter any of the Service in
any manner whatsoever; (v) use or access the Service in a
manner that would reasonably be expected to damage,
disable, overburden, or impair any Origami servers or the
networks connected to any Origami server (and if any
access or use of the Service does damage, disable,
overburden, or impair any Origami servers or the networks
connected to any Origami server, then Client shall promptly
discontinue such access or use upon written notice ofsuch
by Origami); (vi) take any action that would reasonably be
expected to interfere with any third party's use and
enjoyment of the Service (and if any Client action does
interfere with any third party's use and enjoyment of the
Service, then Client shall promptly discontinue such action
upon written notice of such by Origami); (vii) attempt to
gain unauthorized access to the Service, accounts, computer
systems, or networks connected to any Origami server;
(viii) use any robot, spider or other automatic device or
manual process to monitor or copy portions of the Service;
(ix) use the Service in a manner intended to abuse or violate
the privacy or property rights of others; (x) perform any
vulnerability scanning or penetration testing on the Service
or Origami's systems or networks without Origami's
explicit prior written consent for each such scan or test; or
(xi) access the Service in order to (A) build a competitive
product or service, or (B) build a product using similar
unique and confidential ideas, features, functions or
graphics of the Service.
(e) Users. Client may permit the number of
authorized Users as set forth in the Statement of Work to
use the Service. Each authorized User shall access and use
the Service (i) in accordance with the terms of this
Agreement and the applicable Statement of Work and
Documentation, and, (ii) when applicable, through a unique
and reasonably secure username and password as further
described in the applicable Statement of Work or
Documentation. The Service allows Client to grant different
levels of access to Client Data, to different Users, as
described in more detail in the Statement of Work. It is
Client's responsibility to designate the applicable access to
be granted to each User. Client shall cause all Users to
comply with all obligations of Client hereunder, to the
extent applicable to Users. Except for Client's and its
Affiliates' system administrators where reasonably
necessary for administrative or security purposes, no User
may use the username/user identification or password of
any other User. Client's failure to cause a User to comply
CoNFIDENTIAL
with the terms of this Agreement or any uncured User
noncompliance shall constitute a material breach of this
Agreement by Client.
(Ð Third Party Access. Client shall also have
the right for Client and its Affiliates to permit third party
Users to access or use the Service in accordance with the
terms and conditions of this Agreement and the applicable
Statement of Work, provided that each such third party User
has agreed in writing to Origami's Third Party User
Agreement ("Third Party Terms") prior to or upon such
User's initial login to the Service. Such Third Party Terms
are available from Origami upon request. Client may meet
this requirement with respect to any third party User by
requiring such third party User to accept the Third Party
Terms as part of a click-through that can be enabled to
appear upon such third party LJser's initial login to the
Service. Any rights granted hereunder or under the Third
Party Terms with respect to the Service to third party Users
shall expire or terminate immediately upon the termination
of this Agreement in accordance with its terms. Client shall
be fully responsible for (i) ensuring the compliance of each
Client Party with the terms and conditions of this
Agreement, the applicable Statement of Work and
Documentation, and the applicable Third Party User
Agreement, and (ii) all violations of the terms or conditions
of this Agreement, the applicable Statement of Work and
Documentation, and the applicable Third Party Terms by
each Client Party.
(g) Professional Services. During the term of
this Agreement, Origami will make available to Client
certain Professional Services to the extent set forth in the
Statement of Work. Client may also contract for expanded
services for additional days and hours in accordance with
the rates set forth in the Statement of Work, or if no such
rates are specified, Origami's then-current policies and
prices. Notwithstanding the foregoing, Origami will not be
obligated to provide any support required as a result of, or
with respect to, (i) Client's operating systems, networks,
hardware, or other related equipment of Client, or (ii)
Client's or any of its Users' use of the Service other than in
accordance with the applicable Statement of Work and
Documentation and as permitted under this Agreement.
(h) Client Obligations. Client shall: (Ð
provide Origami with reasonable access to Client's
premises to the extent necessary to enable Origami to
perform its obligations hereunder; (ii) provide adequate
resources to participate in or facilitate the performance of
the Service; (iii) timely participate in meetings relating to
the Service; (iv) assign personnel with relevant training and
experience to work in consultation with Origami; (v) meet
the requirements to use the Service as set forth at
http://www.origamirisk.com/product-requirements; (vi)
safeguard the usernames, passwords and other security data,
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methods and devices furnished to Client in connection with
the Service and prevent unauthorized access to or use ofthe
Service and promptly notif,i Origami if it becomes aware of
any such unauthorized access or that the security of its
usernames or passwords has been compromised; (vii) be
responsible for Client networks, equipment and system
security required or appropriate in connection with the
Service; (viii) have sole responsibility for the acc,uracy,
quality, legality, reliability and appropriateness of all Client
Data; (ix) transmit Client Data only in an encrypted format
as set forth in the Service Level Agreement or as otherwise
mutually agreed by the parties; (x) obtain all consents and
authorizations from any third parties that Client requires in
order for Origami to provide the Service and perform the
Professional Services, and (xi) take such other actions as are
required of Client pursuant to this Agreement, including any
Statement of Work.
(i) Client Warranty. The parties
acknowledge and agree that during the term of this
Agreement a Client Party or other third parties may disclose
certain Client Data, including personally identifiable data
regarding employees or other individuals, to Origami for the
benefit of a Client Party. With respect to any Client Data so
disclosed by, or on behalf of, a Client Party to Origami,
Client represents and warrants to Origami that: (i) each such
Client Party, and such other third parties operating on
Client's behalf are authorized to collect, use and disclose
the Client Data to Origami for use and storage pursuant to
this Agreement; (ii) such disclosure, use or storage does not
and shall not violate applicable law or, if applicable, such
Client Party's agreements with or privacy notices to
individuals with respect to whom the Client Data relates;
and (iii) Client shall not request Origami to use, store,
disclose or otherwise process Client Data in any manner that
would not be permissible under applicable law or, if
applicable, such Client Party's agreements with or privacy
notices to individuals with respect to whom the Client Data
relates, if done by Client.
0) Non-Origami Events. Client
acknowledges and agrees that Origami shall not be
responsible or liable for any delay or failure in its
performance of any duties or obligations pursuant to this
Agreement, including any Statement of Work, to the extent
such delays or failures result or arise from any (l) act or
omission of any Client Party, including any delays in their
performance or cooperation with respect to the obligations
or warranties set forth in this Agreement or any Statement
of Work; (2) failure of any Client Party's equipment or
software (other than the Service); or (3) Force Majeure
Event.
(k) Mobile Service. The Service may include
certain services that are available via an application
downloaded and installed on a mobile device. To the extent
CoNnrnnNrtlt,
Client chooses to use such application, Client acknowledges
and agrees that Client Data may be stored locally on a
mobile device as part of such service and that the physical
security of any mobile device used to access such services
is Client's responsibility. If Client or any User elects to store
data on a mobile device, Origami shall not be responsible
for any loss of Client Data or any other data on such device.
3. INTELLECTUAL PROPERTY
RIGHTS.
(a) Origami Intellectual Property Rights. As
between Origami and Client, Origami owns all right, title
and interest, including all related Intellectual Property
Rights in and to, or related to the Service and Work Product,
including all software programs contained therein. To the
extent that any such Intellectual Property Rights do not
otherwise vest in Origami or its licensors, Client hereby
agrees to promptly assign such Intellectual Property Rights
to Origami or its licensors, and to do all other acts
reasonably necessary to perfect Origami's or its licensors'
ownership thereof, without additional consideration of any
kind. The Origami name, the Origami logos, and the product
names associated with the Service are trademarks of
Origami or third parties, and no right or license is granted
with respect to their use. The Service may contain
intellectual property belonging to third parties. All such
intellectual property is and shall remain the property of its
respective owners. Except for the limited rights expressly
granted herein, all right, title and interest in and to the
Service and Work Product are reserved by Origami, and,
except as expressly granted herein, nothing contained in this
Agreement shall be construed as conferring any right, title,
interest or license with respect to the Service or Work
Product upon Client, by implication, estoppel or otherwise.
In addition, Client agrees and acknowledges that Origami
shall have an unlimited right to incorporate into any
updates, upgrades, or modifications to the Service all
suggestions, ideas, enhancement requests, feedback,
recommendations or other information provided by Client
or any User relating to the Service. Such Service, as
updated, upgraded, or modified, shall be owned by Origami
as provided in this Section. Client expressly acknowledges
and agrees that the Work Product shall not constitute work
made-for-hire under the United States Copyright Act, and
that Origami shall have the exclusive right to protect the
Work Product by patent, copyright, or any other means.
Work Product shall be made available to Client as part of
the Service to the extent set forth in the Statement of Work,
and Client shall have no other right to use any Work
Product. Nothing in this Section shall affect the ownership
by Client of all Client Data as provided below or other
Client proprietary information.
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(b) Client Data. Client Data shall be
Confidential Information of Client under this Agreement.
As between Origami and Client, Client shall own all right,
title and interest in and to the Client Data, which shall never
be deemed to be the Service or Work Product, even if
delivered or incorporated therewith. Origami shall have no
responsibility, whatsoever, for the accvracy, quality,
legality, reliability, appropriateness, and intellectual
property ownership of Client Data, and Origami shall not
review, monitor or check the Client Data except as
necessary to provide the Service to Client. Origami shall not
be responsible or liable for the deletion, destruction, damage
or loss of any Client Data through no fault of Origami or its
providers without limiting Origami's liability to maintain
backup data as set forth in the Service Level Agreement.
Upon Client's written request within 30 days following the
termination of this Agreement, Origami will at its expense
provide electronic files to Client in delimited text format
containing Client's Client Data. Subject to Origami's
confidentiality obligations set forth in this Agreement,
Client agrees that Origami shall have the right to collect and
use data or information resulting from a Client Party's use
of the Service so long as such data and information is de-
identified and aggregated so that it cannot identify, be traced
back to or otherwise be associated in any manner with
Client or any particular individual.
(c) Notices of Infringement. In the event
Client discovers or is notified of an actual or suspected
infringement of the rights of Origami or its licensors in or
to the Service or any unauthorized access to or use of the
Service (each, an "Infringement"), Client shall promptly
notify Origami of such known or suspected Infringement
and terminate such Infringement to the extent within
Client's control. Client agrees to reasonably cooperate with
and assist Origami (at Origami's sole expense) in
protecting, enforcing and defending Origami's rights in and
to the Service.
4. FINANCIAL TERMS.
(a) Fees. Client shall pay to Origami the Fees
set forth in any Statement of Work or as otherwise agreed
in writing by the parties.
(b) Expenses. Client shall reimburse Origami
for all pre-authorized in writing, reasonable, documented
out of pocket travel, lodging, meal and other expenses
reasonably incurred by Origami in the course of performing
the Service.
(c) Taxes. Client shall be liable for any taxes
(including without limitation sales, use, excise and gross
receipts taxes), charges, tariffs, and duties and any interest
and penalties arising under this Agreement, excluding taxes
CoNrIuu¡qtt¡l
based upon Origami's income. All such taxes may be
included in amounts invoiced by Origami to Client.
(d) Payments. All Fees under this Agreement
shall be payable by Client in accordance with the applicable
Statement of Work or as otherwise agreed by the parties.
Fees shall be due within 30 days of invoice date. Except as
provided in Sections 7(b) and 9(a), all Fees paid hereunder
are non-refundable.
5. CONFIDENTIALITY.
(a) Confidential Information. Each parTy
acknowledges and agrees that during the term of this
Agreement it may be furnished with or otherwise have
access to Confidential Information of the other party. The
party that has received Confidential Information (the
"Receiving Party"), in fulfilling its obligations under this
Section, shall exercise the same degree of care and
protection with respect to the Confidential Information of
the party that has disclosed Confidential Information to the
Receiving Party (the "I)isclosing Party") that it exercises
with respect to its own Confidential Information, but in no
event shall the Receiving Party exercise less than a
reasonable standard of care. The Receiving Party shall only
use, access and disclose Confidential Information as
necessary to fulfill its obligations under this Agreement,
including any Statement of Work, or in exercise of its rights
expressly granted hereunder. Receiving Party shall not
directly or indirectly disclose, sell, copy, distribute,
republish, create derivative works from, demonstrate or
allow any third party to have access to any of Disclosing
Party's Confidential Information; provided that the
Receiving Party may disclose the Disclosing Party's
Confidential Information to its directors, officers,
employees, subcontractors, agents, Affiliates or other
representatives (collectively, the "Representatives") who
have a need to know and who are bound by confidentiality
obligations with respect to such Confidential Information
that are substantially similar to those set forth in this
Section. The Receiving Party shall be responsible and liable
for any breach of this Section by any of its Representatives.
This Agreement (including all Statements of Work and
pricing thereunder) and all Intellectual Property Rights with
respect to the Service and Work Product shall be deemed to
be Confidential Information of Origami under this
Agreement.
(b) Exclusions. The following information
shall not be considered Confidential Information subject to
this Section: (i) information that is publicly available or
later becomes available other than through a breach of this
Agreement; (ii) information that is known to the Receiving
Party or its Representatives prior to such disclosure or is
independently developed by the Receiving Party or its
Representatives subsequent to such disclosure; or (iii)
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information that is subsequently lawfully obtained by the
Receiving Party or its Representatives from a third party
without obligations of confidentiality. If the Receiving
Party is required by law to disclose any portion of the
Disclosing Party's Confidential Information, Receiving
Party shall give prior timely notice of such disclosure to
Disclosing Party to permit Disclosing Party to seek a
protective or similar order, and, absent the entry of such an
order, Receiving Party shall disclose only such Confidential
Information as is necessary be disclosed in response to such
subpoena, court order or other similar document.
(c) Return of Confidential Information.
Upon termination or expiration of this Agreement, the
Receiving Party will promptly return or destroy any
Confidential Information in the possession or control of the
Receiving Party. Origami's obligation to return and destroy
Client Data is set forth in Section 3(b).
6. DATASECURITY.
(a) Audit Report. Upon Client's written
request to Origami during the term of this Agreement (no
more than once in any l2-month period), Origami shall
provide a copy of its Service Organization Control (SOC) 2
audit report (or an equivalent audit report or pursuant to a
successor standard) ("SOC 2 Report") to Client, and such
report shall contain an unqualified opinion. Such audit
report shall be deemed Confidential Information under the
terms of this Agreement.
(b) Safeguards. Origami shall maintain
commercially reasonable administrative, technical and
physical safeguards designed to protect the security and
privacy of Client Data. Such safeguards are described in
Origami's most recently completed SOC 2 Report. In no
event during the term of this Agreement will Origami
materially diminish the protections provided by the controls
set forth in such SOC 2 Report. Such safeguards shall
comply with data privacy laws that are applicable to
Origami in its performance of this Agreement, including,
without limitation, any applicable data privacy laws
addressing personally identifiable information that may be
contained in the Client Data. Origami shall also maintain an
internal information security management program that
addresses data security and the security controls employed
by Origami in compliance with this Agreement. Origami
shall encrypt Client Data as set forth in the Service Level
Agreement.
(") Notifïcation. Origami shall inform Client
promptly and without undue delay in the event that it learns
of any breach of Origami's systems resulting in
unauthorized disclosure of, or access to, any Client Data.
Any such notice will provide a description about the Client
Coxrlnnurt¡r.
Data that was accessed to the extent available at the time of
the notice. Origami will provide regular updates to Client as
additional details about the nature of the affected Client
Data become available. Origami agrees to mitigate, to the
extent practicable, any harmful effects from such breach
that are or become known to Origami.
7. TERM AND TERMINATION.
(a) Term. This Agreement shall commence on
the Effective Date and remain in effect for three years,
unless terminated sooner in accordance with this Section.
This Agreement may be extended upon the mutual
agreement of the parties.
(b) Termination. This Agreement may be
terminated by either party upon written notice to the other
party if the other party breaches any material term and fails
to cure such breach within 30 days after receipt of written
notice of such breach. If Client terminates the Agreement
for Origami's breach in accordance with this Section,
Origami shall refund to Client, within 45 days of the
effective date of such termination, any prepaid but unearned
Fees paid to Origami in advance by Client.
(c) Termination for Non-Appropriation of
Funds. If sufficient appropriations and authorizations are
not made available to Client, this Agreement may be
terminated at the end of Client's then current fiscal year
upon written notice given by Client to Origami. Such event
shall not constitute an event of default. All payment
obligations of Client and all of its interest in this Agreement
will cease upon the date of termination. In the event of
termination under this section, Client shall pay Origami for
all timely completed and conforming work done to the date
of termination.
(d) Events Upon Termination. Upon the
termination of this Agreement: (i) Origami shall cease
providing the Service to Client, and Client and its Users
shall cease use of the Service; and (ii) Origami shall invoice
Client for all accrued Fees and all reimbursable expenses.
Client shall pay the invoiced amounts, including from
previously issued invoices, within 30 days of the date of
such invoice.
(e) Survival. Except as otherwise set forth
herein, in the event of termination of this Agreement for any
reason, the provisions of Sections 2(i), 2Q),3, 5,7(c),7(d),
8(c), and 9 through 13, as well as all payment obligations,
shall survive.
8. LIMITED WARRANTY.
(a) Service Warranty. Origami warrants that
the Service will perform in all material respects in
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ORTGAMI RISK
accordance with the Documentation when used in
accordance with the terms of this Agreement on the
hardware and with the third-party software specified by
Origami from time to time. Client's sole remedy for any
breach by Origami of the warranty provided in this Section
shall be replacement of the nonconforming Service, at
Origami's sole expense, as described herein. Origami shall
deliver to Client replacement Service, a work-around and/or
an error/bug f,rx as may be necessary to correct the
nonconformity. In the event that Client gives Origami
notice of an apparent nonconformity that Origami
reasonably determines is not due to any fault or failure of
the Service to conform to the warranty provided herein, all
time spent by Origami resulting in such determination,
including time spent attempting to correct the problem, shall
be charged against Client's client service hours, or, if client
service hours have been exhausted, charged to Client at
Origami's then current hourly rate for such services.
(b) Professional Services Warranty. Origami
represents and warrants that the Professional Services shall
be performed in a professional and commercially
reasonable manner consistent with the standard of care
exercised by Origami in performing similar services for
other clients. Client's sole remedy for breach of this
warranty shall be re-performance of the nonconforming
Professional Services, provided that Origami must have
received written notice of the nonconformity from Client no
later than 30 days after the original performance of the
applicable Professional Services by Origami.
(c) Disclaimers.
(i) EXCEPT AS OTHERWTSE
EXPRESSLY STATED IN THIS AGREEMENT,
ORIGAMI MAKES NO WARRANTY OR
REPRESENTATION WHATSOEVER, EITHER
EXPRESS, IMPLIED OR STATUTORY, WITH
RESPECT TO THE SERVICE, WORK PRODUCT,
PROFESSIONAL SERVICES, OR ANY OTHER
SERVICES PROVIDED HEREUNDER OR THE USE
THEREOF BY CLIENT AND ITS USERS, TNCLUDING
QUALITY, PERFORMANCE, MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE OR NON-
INFRINGEMENT, AND ORIGAMI HEREBY
DISCLAIMS THE SAME. EXCEPT AS OTHERWISE
SET FORTH IN THIS AGREEMENT, ORIGAMI AND
ITS LICENSORS DO NOT REPRESENT OR WARRANT
THAT: (a) THE USE OF THE SERVICE WILL BE
UNINTERRUPTED OR ERROR-FREE; OR (b) THE
SERVICE WILL MEET CLIENT'S REQUIREMENTS
OR EXPECTATIONS; OR (c) ALL ERRORS OR
DEFECTS IN THE SERVICE V/ILL BE CORRECTED.
(ii) CLTENT ACKNOWLEDGES
AND AGREES THAT THE SERVICE IS A TOOL TO BE
CoNFIDENTIAL
USED BY CLIENT IN THE COURSE OF EXERCISING
ITS PROFESSIONAL JUDGMENT. THE SERVICE
MAY BE SUBJECT TO LIMITATIONS, DELAYS, AND
OTHER PROBLEMS INHERENT IN THE USE OF THE
INTERNET AND ELECTRONIC COMMLINICATIONS.
ORIGAMI IS NOT RESPONSIBLE FOR ANY DELAYS,
DELIVERY FAILURES, OR OTHER DAMAGE
RESULTING FROM SUCH PROBLEMS OUTSIDE OF
ITS REASONABLE CONTROL. NO ORIGAMI AGENT
OR EMPLOYEE IS AUTHORIZED TO MAKE ANY
EXPANSION, MODIFICATION OR ADDITION TO
THIS LIMITATION AND EXCLUSION OF
WARRANTIES IN THIS AGREEMENT.
(iii) Origami shall not be responsible
for: (A) any non-conformities of the Service with
Documentation, omissions, delays, inaccuracies or any
other failure caused by a Client Party's computer systems,
hardware or software (other than the Service), including by
interfaces with such third party software, or any
inaccuracies that such systems may cause within the
Service; or (B) any data that Origami receives from a Client
Party or third party sources and including the data's
accuracy or completeness, or Client's claim handling or
other decisions. Origami disclaims any liability for
interception of any such data or communications, including
of encrypted data. Client agrees that Origami shall have no
responsibility or liability for any damages arising in
connection with access to or use of the Service by any Client
Party to the extent such access or use is not authorizedby
this Agreement.
9. INDEMNIFICATION BY ORIGAMI.
(a) Indemnification. Origami agrees to
indemnify, defend, settle, or pay any third party claim or
action against a Client Party for infringement of any U.S.
patent or copyright arising from Client's use of the Service
in accordance with this Agreement. If the Service or any
part of the Service is held to infringe and the use thereof is
enjoined or restrained or, if as a result of a settlement or
compromise, such use is materially adversely restricted,
Origami shall, at its own expense and as Client's sole
remedy therefor (other than the indemnification obligation
set forth above), either: (i) procure for Client the right to
continue to use the Service; or (ii) modify the Service to
make it non-infringing, provided that such modification
does not materially adversely affect Client's authorized use
of the Service; or (iii) replace the Service with a functionally
equivalent non-infringing program at no additional charge
to Client; or (iv) if none of the foregoing alternatives is
reasonably available to Origami, terminate this Agreement
and refund to Client any prepaid but unearned Fees paid to
Origami in advance by Client prior to the effective date of
the termination.
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(b) Exclusions. Origami's indemnification
obligations under Section 9(a) shall not apply to the extent
the claim is based on: (i) modifications to the Service or any
component thereof made by anyone other than Origami or
on behalf of Origami; (ii) use of any Service in combination
with a product not supplied by Origami; or (iii) use of any
Service other than in accordance with this Agreement and
the Documentation.
(c) Conduct. Origami shall have the sole right
to conduct the defense of any such infringement claim or
action and all negotiations for its settlement or compromise,
and to settle or compromise any such claim. Client agrees
to cooperate and ensure that each Client Party cooperates
with Origami in doing so. Client agrees to give Origami
prompt written notice, in no case longer than within seven
days of receipt or discovery, of any threat, warning, or
notice of any such claim or action, with copies of any and
all documents each Client Party may receive relating
thereto.
IO. INDEMNIFICATION BY CLIENT.
Client agrees to indemniff, defend and hold harmless
Origami, its Afflliates, and all their officers, directors,
members, managers, shareholders, employees and other
agents for and against any damage, cost, liability, expense,
claim, suit, action or other proceeding, to the extent based
on or arising in connection with: (a) any breach of this
Agreement by a Client Party in connection with Client Data;
(b) a Client Party's violation of any Federal, state or local
law, rule or regulation relating to such Client Party's
collection and use of any Client Data; (c) a claim, which, if
true, would constitute a breach of Client's representations
and warranties under this Agreement.
11. INSURANCE
Origami shall procure and maintain for the duration of the
Agreement, insurance of the types and in the amounts
described in Exhibit D attached and incorporated by this
reference.
12, LIMITATION OF LIABILITY.
(a) Disclaimer of Damages. Origami's
warranty excludes damage related to: (a) failure to follow
Service use instructions; (b) Service used with products not
manufactured or recommended by Origami; (c) abuse,
misuse, intentional, or deliberate damage to the Service; (d)
force majeure; or (e) Service repaired or modified by
persons other than Origami without Origami's written
permission.
(b) Limitation of Liability. Origami's
cumulative liability to any Party for any loss or damage
resulting from any claim, demand, or action arising out of
or relating to any Origami Service or the Professional
CoNFIDENTIAL
Services will not exceed the greater of (i) two times the
payments actually made to Origami hereunder during the 12
months preceding the date on which any claim is made
against Origami and (ii) $100,000. In no event will either
Party be liable for special, indirect, incidental, exemplary,
punitive oÍ consequential damages, however caused,
whether for breach of warranty, breach of contract,
negligence, strict liability, tort or any other legal theory,
even if advised of the possibility of such damages.
13. EXPORT CONTROL.
(a) Export. Client shall not export the Service
or any Work Product in violation of applicable United
States laws and regulations. Client also agrees that it will
not knowingly export, directly or indirectly, the Service or
any Work Product (i) that it knows will directly assist in the
design, development, production, stockpiling or use of
missiles, nuclear weapons or chemical/biological weapons;
(ii) to any entity on the Department of Commerce Entity
List or any person or entity on the Department of Commerce
Denied Persons List, each currently available at
http://www.bis.doc.gov; or (iii) to any country subject to
sanctions administered by the Department of the Treasury's
Office of Foreign Assets Control or to any person or entity
on the lists of prohibited entities and persons maintained by
such office, currently available at
http ://www.ustreas. gov/ofac.
(b) Disclaimer. Origami makes no
representation that the Service is appropriate or available for
use in other locations. If Client uses the Service from
outside the United States of America, Canada and/or the
European Union, Client is solely responsible for compliance
with all applicable 1aws, including export and import
regulations of other countries. Any diversion of the Service
contrary to applicable law is prohibited.
14. GENERAL.
(a) Notices. Any notice, request, demand or
other communication (each, a "Notice") given pursuant to
this Agreement must be in writing and delivered to the other
party by either personal delivery, Certified Mail (return
receipt requested and postage prepaid), nationally
recognized overnight courier (with all fees prepaid) or e-
mail at the address of such party listed on the signature page
to this Agreement. Notices sent via e-mail will be deemed
delivered upon the recipient's confirmation of receipt. A
party may change its address by giving Notice pursuant to
this Section.
(b) Assignment. Neither party shall have the
right to assign, transfer, or sublicense any obligations or
benefit under this Agreement without the prior written
consent of the other party; provided, however, that no
written consent shall be required to assign or transfer this
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Agreement to any parent or wholly owned subsidiary of a
party, and further provided that Origami may assign or
transfer this Agreement without Client's prior written
consent to a successor by way of a merger, acquisition, sale,
transfer or other disposition of all or substantially all of its
assets. Except as otherwise provided herein, this Agreement
shall be binding on and inure to the benefit of the respective
successors and permitted assigns of the parties.
(c) Third Party Beneficiaries. This
Agreement does not and is not intended to confer any rights
or remedies upon any party other than the parties to this
Agreement.
(d) Pubticity. Without prior written approval
signed by an authorized representative of the other party,
neither party shall, directly or indirectly, make any public
announcement related to this Agreement or the Service.
Notwithstanding the foregoing, Origami may disclose the
fact that Client has procured a license for the Service;
provided that Origami will not state or imply that Client
endorses or recommends the Service without the written
permission of Client.
(e) Bntire Agreement; Amendments. This
Agreement (including all exhibits, appendices, schedules
and attachments hereto) constitutes the final agreement
between the parties. All prior and contemporaneous oral and
written communications, negotiations and agreements
between the parties on the matters contained in this
Agreement, including, without limitation, any
nondisclosure or confidentiality agreements entered into
between the parties prior to the date of this Agreement, are
expressly merged into and superseded by this Agreement.
No terms or conditions contained in any purchase order
shall amend this Agreement or shall otherwise constitute an
agreement between the parties. The parties may amend this
Agreement only by a written agreement of the parties that
identifies itself as an amendment to this Agreement.
(Ð Waivers. The parties may waive aîy
provision in this Agreement only by a writing executed by
the party against whom the waiver is sought to be enforced.
No failure or delay in exercising any right or remedy, or in
requiring the satisfaction of any condition, under this
Agreement, and no act, omission or course of dealing
between the parties, operates as a waiver or estoppel of any
right, remedy or condition. A waiver once given is not to be
construed as a waiver on any future occasion or against any
other person.
(g) Severability. In the event that any
provision of this Agreement shall be determined to be
illegal or unenforceable, such provision shall be limited or
eliminated to the minimum extent necessary so that this
CoNprnnNrrnl
Agreement shall otherwise remain in full force and effect
and enforceable.
(h) Resolution of Disputes and Governing
Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Washington. If
the parties are unable to settle any dispute, difference or
claim arising from the parties' performance of this
Agreement, the exclusive means of resolving that dispute,
difference or claim, shall only be by filing suit exclusively
under the venue, rules and jurisdiction of the King County
Superior Court, King County, Washington, unless the
parties agree in writing to an alternative dispute resolution
process. In any claim, or lawsuit for damages arising from
the parties' performance of this Agreement, each party shall
pay all its legal costs and attorney's fees incurred in
defending or bringing such claim or lawsuit, including all
appeals, in addition to any other recovery or award provided
by law; provided, however, nothing in this paragraph shall
be construed to limit the parties' right to indemnification
under Section 10 of this Agreement.
(i) Force Majeure. Neither party shall have
any liability for any failure or delay in performance of its
obligations under this Agreement (except for payment)
because of circumstances beyond its reasonable control,
including without limitation, acts of God, fires, floods,
earthquakes, wars, civil disturbances, terrorism, sabotage,
accidents, unusually severe weather, labor disputes,
governmental actions, power failures, viruses that are not
preventable through generally available retail products,
inability to obtain labor, material or equipment, catastrophic
hardware failures, usage spikes, attacks on servers, or any
inability to transmit or receive information over the Internet
(each, a "Force Majeure Event"), nor shall any such
failure or delay give any party the right to terminate this
Agreement.
0) Certain Remedies. Each party
acknowledges and agrees that (i) it would be extremely
difficult, if not impossible, to calculate the actual damages
in the event of Origami's breach of Section 3(b) or 5 of this
Agreement or Client's breach of Section 2, 3 or 5 of this
Agreement; and (ii) breach of any such provision of this
Agreement would result in ongoing damages to the non-
breaching party that could not be adequately compensated
by monetary damages. Accordingly, each party agrees that
in the event ofany actual or threatened breach ofany such
provision of this Agreement, the non-breaching party shall
be entitled, in addition to all other rights and remedies
existing in its favor atlaw, in equity or otherwise, to seek
injunctive or other equitable relief (including without
limitation a temporary restraining order, a preliminary
injunction and a final injunction) against the other party to
prevent any actual or threatened breach of any such
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provision and to enforce this Agreement specifrcally,
without the necessity of posting a bond or other security or
of proving actual damages.
(k) Counterparts. This Agreement and each
Statement of Work may be executed in counterparts, each
of which will be deemed an original but all of which
together shall constitute one and the same Agreement.
Delivery ofan executed counterpart ofa signature page to
this Agreement or any Statement of Work by PDF or other
electronic means shall be as effective as delivery of a
manually executed counterpart of this Agreement or such
Statement of Work.
Coxrronxrw
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OnrcrvrrRrsr
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date
ORIGAMI RISK LLC CITY OF KENT, WASHINGTON
By:By:
Name Name:
(Print Name)(Print Name)
Title:Title
Co¡lrrnnNrr¡,
Address: 222N. LaSalle St.
Suite 2125
Chicago, IL 60601
Email : legal@origamiri sk. com
Address:
Email:
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Onrcavrt Rrsr CoNFIDENTIAL
EXHIBIT A
STATEMENT OF WORK
This Statement of Work ("SOW") describes services to be performed by Origami Risk LLC ("Origami") for the City of
Kent ("Client"). This SOW is subject to all the terms and conditions of the Software Subscription Agreement between
Client and Origami, into which it will now be integrated as Exhibit A.
PROJECT SCOPE
Provide and implement Origami's Risk Management Information System (RMIS) (the "Service") to Client's Risk
Management team to help ensure accurate and consistent tracking and reporting of Client's claims, policies, locations and
exposures.
Project Priorities: The immediate priorities focus on the following areas
(i) Convert and load data from TPAs
Origami will convert the Client's TPA data and import into the Service. This process requires the receipt of
timely and accurate data from the TPA vendors, and requires collaboration between Origami and Client to
evaluate and resolve data anomalies uncovered throughout the conversion process.
(ii) Reporting and Dashboards
Origami will work with Client to configure and deploy the standard reporting and dashboard features of the
Service to empower Client's professionals at locations throughout the hierarchy to view/receive reports and
dashboards. Origami and Client will collaborate on the reports and dashboard layouts using standard widgets and
reports.
CLIEI{T ROLES AND RESPOI{STBILITIES
Client will identify a System Administrator ("Client SA") who will be responsible for working with Origami to implement
the Service and to provide ongoing production support to Client's Users. The Client SA and, from time to time, other
Client employees will be available to provide timely direction and feedback as needed by Origami to complete the
Origami tasks in this SOW. The Client SA will also be responsible for setting up, assigning security rights, and
maintaining user IDs for all Users.
Client will have final responsibility for decisions regarding the functionality, usability and data access rights of any
configurations (such as forms, dashboards and interfaces) contemplated by the Implementation or Support sections in this
SOV/ or otherwise created by or for Client or Client's users in the Service.
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ORrcnrurr Rrsr
LICENSES
ConrtonNtLlI,
Enterprise License
License Selected Description
RMIS Yes This Enterprise License includes functionality related to risk management, including
incidents, claims, insurance policy management, locations, certificates of insurance, safety,
and risk management portal.
Enterprise Risk Management
IERM)
No This Enterprise License includes ERM functionality
* Origami also offers other Enterprise Licenses (e.9.. Commercial Claims and Commercial Underwritins) that are not included under this SOW
User Licenses
License Ouantitv Descrintion
Full User 3 These licenses have access to all the capabilities and features ofthe Service under the selected Enterprise
License, except those features utilized for adjusting claims such as check writing, setting reserves and
calculating indemnity benefits. These licenses have access to Extended Functionality features to the extent
selected below.
Light User These licenses have access to the dashboard, reports pre-configured for them, and read-only access to other
areas ofthe Service under the selected Enterprise License. Light Users do not have access to Administration
features or Extended FunctionaliW features.
Claims Adjusting
lJser
0 These licenses have access to all the features and capabilities ofthe Service under the selected Enterprise
Licensc, including those features utilized for adjusting claims such as check writing, setting reserves and
calculating indemnity benehts. These licenses have access to Extended Functionality features to the extent
selected below.
Non-Named User Access Licenses
License Selected Ouantitv Description
Enterprise Wide
Record Entry
No Up to 0 records
added per year
These licenses are not named licenses and have access only to enter records either by
(l) an anonymous collection portal, by clicking an anonymous collection link
generated via Origami's administration features ("Portal Data Entry") or (2) granting
access to a URL sent ÍÌom Origami Risk as a Data Entry Event email notification,
giving time limited access to a single record ("Grant Access").
Enterprise Values
Collection
No 0 Users These lìcenses allow representatives in the field to enter data through the Service's
online platform pertaining to information necessary for renewal submissions, such as
TIV, Square Footage, COPE information, or other such asset and exposure data.
Extended Functionalitv Licenses
License Selected Ouantitv Descrintion
Secure Email No Up to 0 Secure
Emails sent per
month
This license provides secure email functionality, which provides password protected
hosting for email communications from and to the Service.
OCR Scanning No Not Included This license provides optical character recognition (OCR) functionality for the
purpose of mapping specified data fiom scanned documents to data frelds within the
Service.
Certihcate of
Insurance Tracking
No [!ryggþover
initial 100
This license provides certificate ofinsurance tracking for third party insureds, such as
tenants, vendors, contractors or customers. The first 100 insureds are provided at no
additional cost, and this license provides the ability to track certificates for more than
1 00 insureds.
SMS Messaging*No 0 SMS Messaees
(over initial 500)
This license provides the ability to send SMS messages as workflow actions within
the Service's administration features. The frrst 500 messages per year are provided
at no additional cost, and this license provides the ability to send more than 500
messages Der vear.
Two Factor
Authentication*
No 0 2FA Messaees
(over initial 500)
This license provides the ability to send SMS and/or email messages to users to
validate their identity before logging in fiom a new device and/or once every 30 days
fiom the same device. The fìrst 500 messages per year are provided at no additional
cost. and this license Drovides the ability to send more than 500 messases oer vear.
Mobile Forms App No Not Included Origami's Mobile Forms App may be used by any named user for no additional
license fee. but service hours are required lor confisuration.
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* By purchasing this license, Client will need to agree to certain vendor terms and conditions to be provided by Origami.
License Notes:
l. Origami adds generally available features from time to time that may require conflrguration prior to use. If Client
requests Origami's assistance in this configuration, Professional Services hours may be applied for any such
configuration.
2. In addition to the generally available features, Origami may occasionally deploy new functionality that will require
an Extended Functionality License similar to those listed in the Extended Functionality License section above. These
features may require additional fees based on record volume, number of additional users accessing the new features,
or some other incremental cost driver. Client may agree to add such an Extended Functionality License in a separate
Statement of Work.
HOSTII{G
Origami will provide data storage for up to 5,000 claims and incidents. In addition, Origami will provide 50GB of file
attachment storage. Additional storage is available al any time during the term of this SOW as set forth in the Pricing
section below.
Origami will host the application and data in a secure internet accessible environment. Origami will backup Client data at
periodic intervals each day.
TMPLEMENTATION PROCESS
Implementation is the process of configuring the Service for use by Client including system settings, supporting Client in
loading data, training users, and other work identified in this section of the SOW. The implementation phase is completed
when Client is able to utilize the Service platform for the purposes described in the Project Scope above, referred to by
Origami as being Live in the system. Origami will manage the overall implementation process, including scheduling and
leading meetings, communicating with the team, follow up documentation, and maintaining the project schedule through
the Go-Live date. Client's provision of timely and accurate specifications, direction and feedback is essential to the
implementation.
Svstem Configuration
Origami will:
- Develop the claim forms for Work Comp, General Liability, Property, Auto Liability and Auto Physical Damage
(including form for recoveries/receivables).
- Configure up to 2 default dashboards using standard Origami dashboard widgets.
- Configure up to 8 reports using standard Origami RMIS templates and/or the custom template design tool.
- Configure up to 2 report distribution lists.
Mobile Claimant
App
No Not Included Origami's Mobile Claimant App may be used by any named user for no additional
license fee, but service hours are required for conhguration. Requires a minimum of
three (3) Claims Adiustins Users.
Workers'
Compensation
Solutions*
No Jurisdictions: None This license includes the following Origami Compliance solutions (this functionality
is only available to Claims Adjusting Users):
r Automated EDI FROI/SROI State Reporting via Mitchell
r lndemnity Benefits Rates
o Workers' Compensation State Forms
ODG Integration
User*
No 0 Users This license provides integration with ODG's Return to Work guidelines. This
feature may only be utilized by Claims Adjusting Users and Full Users. This feature
queries ODG's RTW and treatment euidelines based on WC claim diaenosis codes.
Tableau*No 0 Users This license allows Origami users to access Tableau within the Origami environment,
orovidins enhanced data visualization.
eSignature
Intesration*
No 0 Envelopes This license provides the ability to tag mail merge documents with electronic
signature fields, authenticating through a third-party eSignature tool.
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Configure I Location form layout
Deploy Standard Contact form layout
Deploy Standard Policy form layout
Configure up to 5 data entry events with corresponding system actions
Annual process to purge claims that are past the retention date agreed to with Client (likely to be 7-10 years,
based on retention schedule and underwriter needs).
Client will:
- Provide specifications, direction, and feedback as needed by Origami in a timely manner.
- Configure additional default dashboards, fields, forms, user roles, distribution lists, reports and other features as
needed by Client.
Loadine Other Sunnorted Risk Data via Data Imnort Center
Origami will:
- Provide training and support to Client as needed for following import activities
Client will:
- Provide, or anange to provide, spreadsheets containing Client's risk data in the format supported by the Service's
Data Import Center.
- Utilize the Service's standard Data Import Center tools to import the above risk data.
Loadine Carrier / TPA Claims Data for Data Processine
Origami will:
- Provide Client with text for data request letters suitable for requesting necessary data from each of the sources
named below.
- Convert and load the initial system data from the sources named below
Client will:
- Arrange for claims and transactions data be sent to Origami from Carl Warren.- Arrange for claims and transactions data to be sent to Origami from Work Comp TPA.
Confieuration of [Incidentl Intake Process
Origami will:
- Configure the Enterprise Portal Data Entry Screens to accurately mirror Client's existing process (with below
improvements)
- Build the workflow in the Service for proper email notification, mail merge document distribution and task
creation according to Client's business rules.
Clìent will:
- Provide screen shots of existing intake forms currently in use.
- Work with Origami to identify opportunities to improve on current intake forms and process.
- Specify the workflows and individuals required for event triggered emails, tasks and mail merge
Trainins
Orieami will:
Provide 16 hours of training to Client in year I of this SOW and provide additional training each subsequent year
as needed. Professional Service hours will be eroded for training in future years. Training will be provided at
Client offices or online at Client's request. Training can be provided in one session or several on mutual
agreement between Client and Origami. Travel & Expenses associated with any on-site training will be pre-
approved by Client and billed as incurred.
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Client will:
- Provide Origami with guidance about the employees to be trained and any training requirements or a preferred
approach.
- If training is to be provided in Client office, provide appropriate meeting space and internet access so Origami can
perform the training and also provide for transportation and other expenses for Client employees who attend the
training.
PROJECT MANAGEMENT OPTION SELECTED:
Origami is founded on a set of ITERATIVE processes from top to bottom. These contemporary tenets are the foundation
of Origami's ability to deliver better service and faster and more accurate implementations. Origami ¿lso maintains a set
of best practices, tools and experts for our clients who require a more TRADITIONAL approach to managing their
implementation project. The selection below indicates the project management model included within this SOW:
This SOW includes:
Included Iterative Project Management
Not Included Traditional Project Management
Iterative Proiect Management - Included
Origami will:
o Maintain schedule with key deliverables and expected dates*
o Lead status calls twice per month
o Maintain project status document containing priority list, open items and changes which may impact timeline
o Coordinate all activity within Origami to complete Origami's tasks on the project schedule
o Origami's administrative tools and screens are by their nature self-documenting and serve as documentation of the
implementation for Client's System Administrator to reference.
Client will:
o Participate in status calls and working meetings
o Coordinate all activity within Client's organization to complete Client's tasks on the project schedule
o Coordinate all activity of Client's 3'd party providers required to complete tasks on the project schedule
Traditional Project Management - Not Included
In addition to Iterative Project Management described above, Origami shall designate a Project Manager to provide [xx]
hours of project management during the Implementation (on average [x] hours per week). This Project Manager shall
maintain a library of written artifacts and conduct activities including:
ACTIVITIES:
o Formal project kickoff**
o Designated Project Manager role
o Maintain schedule with key deliverables and expected dates/milestones
o Coordinate all activity within Origami to complete Origami's tasks on the project schedule
o Coordinate meetings and discussions with stakeholders as needed to maintain project progress*
o Maintain project stafus document containing priority list, open items and changes which may impact timeline
ARTIFACTS:
o Formal project kickoff agenda**
o Communication plan
o Formal stakeholder analysis
o Project charter
o Collaborationwebsite
o Detailed work breakdown structure
o Weekly project status calls, agenda, meeting notes
o Detailed issues and risks log
o Action items list
o Detailed project plan
o On site agendas**
o Change control management
o Executive steering committee stafus call agenda (as
needed)
o Origami governance decision management document
o UAT test plan for critical items***
o Executive project dashboard
o Lessons learned analysis
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*Project Management assigned as shared role of team members
**May include on site attendance
***Dependent on client input and test cases provided
ONGOING SUPPORT
After the Implementation is completed or Client is using the Service in production for greater than 30 days, this section of
the SOW describes Origami services through the remainder of the term of this SOW.
Carrier / TPA Claims Data Oneoine Processine
Origami will:
Process the claim data updates received from Client data providers as follows:
- Carl Warren: Claims and Financial Transactions processed Monthly
- Work Comp TPA: Claims and Financial Transactions processed Monthly
Client will:
- Use Origami tools to resolve exceptions, if any, such as missing locations, incomplete code maps, and other
exceptions, which may occur in the update as a result of data enors or missing data from data providers.
- Notify Carrier / TPA of data exceptions when appropriate to have data corrected at source.
Professional Services
This SOW includes up to 40 hours of Professional Services in the first year, up to 40 hours in the second year, and up to
40 hours in the third year. Professional Services include any work performed by Origami professionals on behalf of
Client. Examples include:
¡ Helpdesk support for users
¡ Additional user training
o General assistance utilizing the Service
¡ Configuration of features for Client's use
¡ Maintenance of screens and system configurations as workflows evolve
o Configuration of customized reports
o Maintenance or modification of any import or export scripts
¡ Attendance in meetings
¡ Project management tasks and administration
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PRICII{G AND INVOICE SCHEDULE
The price for the licenses and services listed above in this SOW is $68,770 for the first year, $31,400 for year two, and
$31,400 for year three of the contract. Exhibit B provides a detailed breakdown of the components of the price.
Origami is provided a discount of $4,000 in the first year for a total of $64,770.
Payment for Year I will be invoiced with $32,385 due upon execution of this SOW and the remaining $32,385 due 4
months from the execution of this SOW. Payments for Year 2 and3 are due on the anniversary date of this SOW.
If needed, additional services can be purchased through an addendum to this SOW. All fees are subject to state sales tax,
where applicable.
All travel costs and expenses will be pre-approved by Client in writing and billed to Client as incurred.
ADDITIONAL PRICING:
1. If Client requires additional storage during the term of this SOW, additional fees will apply as follows:
- Current annual fee for storase of uo to 5.000 Claims / Incidents : $5.000
- Annual fee for storage of 5,001-10,000 Claims / Incidents - $7,500
- Annual fee for storage of 10,001-25,000 Claims / Incidents: $15,000
- Current annual fee for storage includes 50GB of File Attachment storage
- Additional File Attachment storage is $2,000 per 50GB per year
2. Additional Professional Service hours will be invoiced as incurred at Origami's unbundled rate listed within Exhibit B
Bundled hours may be added prior to the start of each contract year.
3. Additional users, additional licenses or additional use beyond that which is listed above in the Licenses section of this
SOW shall require additional fees. Origami shall invoice Client, and Client shall pay for any additional licenses, hosting,
service hours or other usage in excess of what is specified in this SOW.
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ORIGAMIRISK
STATEMENT OF \ilORI( APPROVAL
The undersigned agree to this Statement of Work.
ORIGAMI RISK LLC
Name
(Print Name)
Title:
Date:
CITY OF KENT
CoNrrunNrrar,
By:By:
Name:
Title:
(Print Name)
Date:
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Year 1 Year 2 Year 3 Gomments
Software
Licensing, Hosting,
Network, Storage,
and lT Operations
$10,000 $10,000 $10,000 . Base Origami Software License. Up to 5,000 records
. lncludes 50 GB of file Storage
User Licensinq
$6,000 $6,000 $6,000 . 3 Full User
. Admin Access for No Additional Charge
TPA lnterfaces $8,000 $8,000 $8,000 . Monthly Claim and Transaction Data Loads for
CarlWarren and Work Comp TPA
lmplementation
Fee
$37,370 $o $o . 202 hours - See above for deliverables
Onqoinq Support $7,400 $7,400 $7,400 . 40 Annual Support Hours
Discount
($4,ooo)
Total $64.770 s31.400 $31,400
ORIGAMI RISK CoxnlnrNtlal
EXHIBIT B
PRICING MODEL
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ORrcrvrr Rrsx Co¡,tFrnnNrt¡.l
EXHIBIT C
SERVICE LEVEL AGREEMENT (SLA)
SYSTEM AVAILABILITY
Origami Risk will be available 995% of the time, excluding unavailability as a result of any Excluded Event (the
"Availability Requirement"). This includes holidays, weekends, and non-business hours. It does not include planned
downtime. In normal circumstances, Origami Risk will schedule downtime between 8:00 PM CT and 7:00 AM CT.
Origami Risk will post system availability statistics quarterly.
"Excluded Event" means (i) scheduled maintenance windows of which Client is notified at least 24 hours in advance and
which occur outside of normal business hours; (ii) scheduled repairs of not more than two hours duration in any one week
period of which Client is notified at least four hours in advance and which occur outside of normal business hours; (iii)
critical repairs including security updates where advance notice cannot be reasonably provided; (iv) intemrptions caused
by transmission errors, Internet service providers, vandalism, user effor or other factors beyond Origami's or its direct
service providers' reasonable control; or (v) intemrptions caused by any act or omission of Client (including any
employee, contractor, agent, customer, investor, consultant or third party user of Client or any of Client's affiliates who
uses or accesses the service), including any failure or delay in the performance of its obligations or failure of Client's
equipment or non-Origami software. The Availability Requirement applies only to Origami's production environment
and not to Origami's staging environment.
Service Credits:
In the event there is a material failure of Origami's service to meet the Availability Requirement (a "service Level
Failure") in any calendar month, then Client shall have the following sole and exclusive remedy: Origami will
provide Client with a service credit on the next annual invoice equal to the pro-rated charges for one (l) full day
of the affected services (i.e., l/30 of the monthly fee, assuming a thirty (30) day month) for each day during
which there was a Service Level Failure in such calendar month (a "service Credit"). For clarity, such Service
Credit shall not include credit for hosting fees, data processing fees, professional services fees or any other
prepaid bundled fees other than licensing fees.
If Client believes that it is entitled to receive Service Credits, Client shall notify Origami in writing within seven
business days after the applicable calendar month with a description of the Service Level Failure and the date and
time of such Service Level Failure. If Client does not notify Origami within such timeframe, then Client shall be
deemed to have waived all claims with respect to such Service Level Failure (but not to any future Service Level
Failure). Origami will make all determinations regarding Service Credits in its reasonable discretion.
For any given month, Client shall in no event be entitled to receive a Service Credit that exceeds i00% of its
monthly license fees for such month. Client agrees that Service Credits are the sole and exclusive remedy for any
Service Level Failure.
BACKUP AND RECOVERY
Origami currently backs up transactions every l5 minutes via incremental backups. A differential database backup is
performed nightly and a full backup is performed weekly. Backups are stored off site via Amazon 53, which has multiple
redundancy and99.9999.999990/o durability and99.99%o availability of objects over a given year. Periodic database
restore tests are performed to validate that backups are valid. Origami retains weekly backups for a minimum of six
months.
NOTICES
Two email subscription options are available to each Origami Risk user. These determine the type of communication that
they will receive from Origami Risk.
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Onrcaur Rrsr
- Emergency: Receive emails concerning outages and other system problems
- Maintenance: Receive emails concerning scheduled maintenance on the system.
Courrnnxtt¡t,
In addition, any Origami Risk user can visit http://status.origamirisk.com/ to view the current system status.
SERVICE REQUESTS
Origami Risk will respond to service related incidents or issues within the following time frames:
Urgent Requests
An urgent request for service concerns a new development that significantly affects a major business task with no
workaround. Client will request urgent support by sending an email to support@origamirisk.com with the word "lJrgent"
in the subject line. An urgent request made between 7:00 AM CT and 8:00 PM CT will typically be responded to
immediately, and Client may also call any member of the Origami Risk support team directly. If Client does not receive a
prompt response, Client may escalate by contacting any Origami Risk service or support employee or manager via contact
information provided to Client. The target resolution time for an urgent issue is as soon as possible.
Normal Requests
A normal request for service is any service request that is not urgent. A normal service request will typically be
responded to within one business day. Client will request support by sending an email to support@origamirisk.com.
Client may also call or email any member of the Origami Risk support team directly.
SECURITY
Any access to Origami Risk requires a unique user id and password. Passwords must adhere to standard password
security rules including minimum length and complexity. Origami Risk uses a role-based security model. Client is
responsible for assigning and maintaining role, location, and coverage security for users. Client's system administrators
can use the tools in Origami Risk to review and change security rights, edit the user profile, and reset the password. User
passwords are encrypted in the Origami database using a SHA-256 hash algorithm.
System locks out user after five login attempts with an incorrect password. An administrative user must then reset the
user's password and unlock the user account.
Origami Risk uses TLS vl.2 or higher for all communications over htçs. Origami databases are fully encrypted using
256-bit AES encryption.
Claim, Transaction, and Notes data sent to the Origami Risk FTP site must be encrypted using at least 128 bits. Origami
uses Open PGP for file encryption and can provide an encryption key to be used by the client. Origami Risk will keep the
files on a secured files system in encrypted format except during the import process. When the import process is
completed, unencrypted files are removed from the system.
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ORIGAMI RISK CoNnlonNrnl
EXHIBIT D
INSURANCE REQUIREMENTS FOR
CONSULTANT SERVICES AGREEMENTS
Insurance
The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to
persons or damage to property which may arise from or in connection with the performance of the work hereunder by the
Consultant, their agents, representatives, employees or subcontractors.
Minimum Scope of Insurance
Consultant shall obtain insurance of the types described below:
1. Commercial General Liability insurance shall be written on ISO occuffence form CG 00 01 and shall
cover liability arising from premises, operations, independent contractors, products-completed
operations, personal injury and advertising injury, and liability assumed under an insured contract.
The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project
Endorsement ISO form CG 25 03 11 85. The City shall be named as an additional insured under the
Consultant's Commercial General Liability insurance policy with respect to the work performed for
the City using ISO additional insured endorsement CG 20 10 I 1 85 or a substitute endorsement
providing equivalent coverage,
2. Cyber Liability insurance.
3. Workers' Compensation coverage as required by the state of residency
4. Emplo)'ers Liability Stop Gap coverage, which may be met in combination with Consultant's Cyber
Liability insurance.
Minimum Amounts of Insurance
Consultant shall maintain the following insurance limits
Commercial General Liability lnsurance shall be written with limits no less than $ 1,000,000 each
occuffence, $2,000,000 general aggregate. Coverage may be in the form of an underlying GL
policy combined with an Umbrella/Excess policies in order to meet the limits required.
Cyber Liability insurance shall be written with limits no less than $10,000,000 per occurrence and
$5,000,000 Aggregate.
3. Emplo)¡ers Liability Stop Gap $1,000,000.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and
Commercial General Liability insurance:
The Consultant's insurance coverage shall be primary insurance as respect the City. Any Insurance, self-
insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant's
insurance and shall not contribute with it.
2. If Consultant fails to meet the insurance requirements set forth in this Exhibit, Consultant shall provide
written notice to the City.
2.
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Onrc¡,ur Rrsx
a-t.
CoNrrnnNtr.lt,
The City of Kent shall be named as an additional insured on Consultant's Commercial General Liability
insurance as respects work performed by or on behalf of the Consultant and a copy of the endorsement
naming the City as additional insured shall be attached to the Certificate of Insurance. The Consultant's
Commercial General Liability insurance shall also contain a clause stating that coverage shall apply
separately to each insured against whom claim is made or suit is brought, except with respects to the
limits of the insurer's liability.
D. Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII.
E. Verification of Coverage
Consultant 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 Consultant before
commencement of the work.
F.Subcontractors
Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and
endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance
requirements as stated herein for the Consultant.
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DATE (MM/OO/YYYY)
08t12nu9
THIS CERTIF¡CATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTTFTCATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSU|NG TNSURER(S), AUTHORTZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: lf fhe certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
lf SUBROGATION lS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement, A statement on
fhis certificate does not confer riqhts to the certificate holder in lieu of such endorsement(s).
PRODUCER
MARSH USA INC.
540 W. MADISON
cHtcAGo, tL 60661
cN10829761 7-Std-GAWU-18-19
PHONE FÆ(¿Àlf: Nâì!
INSURERISI AFFORDING COVERAGE NAIC *
tNsURER A : Travelers Pro'p€rtv Casualtv Co. of America 25674
INSURED
0rigami Risk LLC
222 N Lasalle St.
Suite 2125
Chicago, lL 6060'l
INSURFR B: N/A N/A
INSURER C :
INSURER D:
INSI,JRER E :
INSUÞFF F :
COVERAGES
CERTIFICATE OF LIABILITY INSURANCE
CERTIFICATE NUMBER cHt-009324604-01 REVISION NUMBER: 2
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
TYPE OF INSURÂNCE fNcn POLICY NUMBER
FOLICY EFF
f MM/ftfl/YYYvt
POLICY EXP
fMM/DDÍVYYVI LIMITS
A X COMMERCIAL GENERAL LIABILITY
CLAIMS.MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:
X ,o,-,"" fl 55"o; fl ,-o"
X
zLP-31M20600-1 8-t5 1211712018 12t1712019 EACH OCCURRÊNCE $1,000,000
UAMA(jI IUKtsNItsU
PPFMISFS lFâ ñ¡-¡rrrañôÁl $I,000,000
MED EXP (Anv one De6on)$10,000
PERSONAL & ADV INJURY $1,000,000
GENERAL AGGREGATE $2,000,000
PRODUCTS - COMP/OP AGG $2,000,000
$
AUTOMOBILE LIABILITY
ANYAUTO
OWNEO
AUTOS ONLY
HIRED
AUTOS ONLY
SCHEDULED
AUTOS
NON.OWNED
AUTOS ONLY
$
BODILY INJURY (Per peßon)
BODILY INJURY (Per acc¡d€nt)
$
$
UMBRELLALIAB
EXCESS LIAB
OCCUR
CLAIMS.MADE
EACH OCCURRENCE
AGGREGATE
NFD RFTFNTION $$
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
ANYPROPRIETORYPARTNERYEXECUTIVE
OFFICER/MEMBER EXCLUDED?
(Mandafory ¡n NH)
lf yes, descr¡be under
ntrS(ìRlPTIôN ôF ôPFRÂTlôNS hêlôw
N/A
uts-EJ1 /0169-18{b-G 'tzt1il¿u1ö 1Zt1t t20'19 V IPhK^ I srÂTUTF otH-
FR
Ê.L. EACH ACCIDENT s 1,000,000
E.L, DISEASE - EA EMPLOYEE $r,000,000
E.L- DISEASE - POLICY LIMIT s 1,000,000
DESCRIPTION OF OPERATIONS , LOCATIONS / VEHICLES (ACORD 101, Add¡tlonal Remarks Schedule, may be attached if more spacê ls rêqulrod)
limited to liability arising out ofthe operations of the named insured subject to policy lerms ând condil¡ons.
c
@ 1988-2016 ACORD CORPORATION. All rights reserved.
The ACORD name and logo are registered marks of ACORD
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE wlLL BE DELIVERED IN
AGCORDANCE WITH THE POLICY PROVISIONS.
The City of Kent, Washington
220 Fourth Ave. S.
Kent, WA 98032
AUTHORIZED REPRESENTATIVE
of Marsh USA lnc,
--Þ4*a-q,,tøo¡; $4^À¿-l\r,\+<l-Manash¡ Mukherjee
ACORD 25 (2016/03)
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COVERAGES
CERTIFICATE OF LIABILITY INSURANCE
CERTIFICATE NUMBER:cHt-00932461 0-01 REVISION NUMBER: 2
DATE (MM/DD/YYYY)
0811u2019
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSU|NG TNSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(íes) must have ADDITIONAL INSURED provisions or be endorsed.
lf SUBROGATION lS WAMD, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on
this certificate does not confer rights to the certificate holder in lieu of such endorsement{s).
PRODUCER
MARSH USA INC.
540 W. MADISON
cHtcAGo, tL 606ô1
CN10829761 7-Std-Cybe1-l 9-20
PHONElÂln N^ Frl'FAX,ÂrC Nôì.
INSURERISI AFFORDING COVERAGE NAIC #
TNSURER A : National Union Fire lns Co Pittsburoh PA 19445
INSURED
Origami Risk LLC
222 N LaSalle St.
Suite 2125
Chicago, lL 60601
INSURER B:
INSURER C :
INSURER D :
INSURER E
INSURFR F :
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSRITR TYPE OF INSURANCE INSD WN POLICYNUMBER POLIGY EFFIMil'DDÍYYYYI FOLIGY EXP
IMM'DD/YYYY-ì LIMITS
COMMERCIAL GENERÁL LIABILITY
CLAIMS.MADE OCCUR
LIMITAPPLIES PER:
3Ë& l-1'o"
EACH OCCURRENCE t
UAMAGb IUT{ENIEU
ÞPtrMlStrS ltrâ ^.^"rañÉ\$
MED EXP lAnv one Derson)$
PERSONAL &ADV INJURY t
GENERAL AGGREGATE t
PRODUCTS . COMP/OP AGG $
$
AUTOMOBILE LIABILITY
ANY AUTO
OWNED
AUTOS ONLY
HIRED
AUTOS ONLY
SCHEDULED
AUTOS
NON-OWNED
AUTOS ONLY
$
BODILY INJURY (Per peßon)$
BODILY INJURY (Per aæident)$
$
$
X UMBRELLALIAB
EXCESS LIAB
X OCCUR
CLAIMS.MADE
EACH OCCURRENCE $
AGGREGATE $
DED X RETENfloN $ 10.000 a
WORKERS COMPENSATION
ANO EMPLOYERS' LIABILITY Y/N
ANYPROPRIETORYPARTNERYEXECUTIVE
OFFICEFUMEMBER EXCLUDED?
(Mandatory ¡n NH)
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DFSCRIPTION OF OPFRATIONS b6lôw
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06-245-7349 06t22t2015 12t17t2020 Per Claim
Annual Aggregate
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DESCRIPTIOI'¡OFOPERATIONS/LOCATIONS/VEHICLES (ACORDl0l,AdditíonalRêmerksSchêdule,maybeattached¡fmorespacêlsrêqulred)
CERTIFICATE HOLDER
@ 1988-2016 ACORD CORPORATION. All rights reserved
The ACORD name and logo are registered marks of ACORD
SHOULO ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTIGE wlLL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVÍSIONS.
The City of Kent, Washington
220 Fourth Ave. S.
Kent, WA 98032
AUTHORIZED REPRESENTATIVE
of Marsh USA lnc,
-.Þ4*at,¡-a.*r.i 1}r4"*J¿-\¡/.d.......¡<r-Manashi Mukherjee
ACORD 25 (20161031
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OPERATIONS COMMITTEE
Derek Matheson, Chief Administrative Officer
220 Fourth Ave S
Kent, WA 98032
256-856-5712
DATE: August 20, 2019
TO: Operations Committee
SUBJECT: 2019-2020 Property Insurance Program Review
SUMMARY:
Briefing on the City’s 2019-20 Property Insurance Program.
Property Insurance renewal was July 1. The recent premium history is as follows:
• July 2015 to July 2016 $404,800
Premium decrease of 6.5%, includes increase in Earthquake/Flood limit from $50M
to $75M. ShoWare remains at $5M.
• July 2016 to July 2017 $370,725
Premium decrease of 10.3%, despite having negotiated a “flat” renewal for
2016-17.
• July 2017 to July 2018 $346,323
Premium decrease of 7%. Decrease based on adding another layer to EQ/Flood
coverage at a lower rate than Lexington’s rate for the $10M to $25M layer.
• July 2018 to July 2019 $362,500
Premium increase of 7%, due primarily to increased reinsurance costs resulting
from 3 hurricanes and the fires in California during 2017.
• July 2019 to July 2020 $477,521
Premium increase of 23% due to severe losses due to California fires and
flooding, combined with the 2 major carriers limiting their coverage. To
offset, we’ve lowered our flood/earthquake limits to $35M and we’ve lowered
our per occurrence maximum to $150M.
2017 is now the highest insurable loss year on record and 2018 is the 3rd highest on
record. The chart below illustrates US inflation-adjusted Catastrophe losses since
1980.
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The result of this trend is an unsettled Property market. There is an increased
reliance on reinsurance and lower overall capacity within the market. The major
carriers, Lexington (our insurer), FM Global, Travelers, CNA, and many others are
limiting coverage. Earthquake coverage is also being limited. These factors have
led to our selection of limits for this renewal.
Despite the increase in premium and the decrease in Earthquake/Flood coverage,
our overall cost of property insurance remains less for the upcoming year than what
we paid for similar limits in the 2013-2014 policy period. This fact illustrates the
“soft” state of the Property market over the past 5 years, when we’ve been able to
take advantage by increasing our limits. The increase is able to be absorbed within
the Property Insurance fund.
Details of the current program are on attached chart.
SUPPORTS STRATEGIC PLAN GOAL:
Innovative Community, Sustainable Services
ATTACHMENTS:
1. Property Charts 19-20 6.24.19 (PDF)
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CITY OF KENT
$10,000,000
$25,000,000
$10,000,000
$300M Primary
2018 / 2019 2019 / 2020
*Excludes Surplus Lines Taxes & Fees
Lexington
100.00%
All Risk
$210,000
All Risk Earthquake and Flood
Deductibles: $100,000
Earthquake: 5%/$100,000 Minimum
Flood: $250,000 except 5%/$1M for Zones
A&V (ShoWare)
TIV: $313,802,509
Premium: $362,500*
Rate: .116* (+3.4%)
Flood –
A&V
(ShoWare)
RSUI
$125M
100%
All Risk
$87,500
Lexington
$25M
100%
All Risk
$265,000
$150,000,000
$5,000,000
All Risk Earthquake and Flood
Deductibles: $100,000
Earthquake: 5%/$100,000 Minimum
Flood: $250,000 except 5%/$1M for Zone
A&V (ShoWare)
TIV: $326,731,065
Premium: $467,500*
Rate: .143* (+23.3%)
Flood –
A&V
(ShoWare)
$300,000,000
$75,000,000
$5,000,000
Lexington
$10M
Lexington
$10M
Everest Indemnity
$25M
100%
$115,000
United Specialty
38.46%
$55,767
Everest Indemnity
61.54%
$89,233
$25,000,000
$35,000,000
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OPERATIONS COMMITTEE
Derek Matheson, Chief Administrative Officer
220 Fourth Ave S
Kent, WA 98032
256-856-5712
DATE: August 20, 2019
TO: Operations Committee
SUBJECT: June Financial Report
SUMMARY:
Shane Sorenson, Sr. Financial Analyst, will report out the June 2019 financial
report.
SUPPORTS STRATEGIC PLAN GOAL:
Sustainable Services
ATTACHMENTS:
1. June 2019 Monthly Report (PDF)
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2019
Adj Budget
2019
YTD
2019
Est Actual
Variance
Favorable
(Unfavorable)
%Variance
Favorable
(Unfavorable)
Revenues 107,697,000 55,571,922 110,196,630 2,499,630 2.3%
Expenditures 108,566,297 44,237,199 107,798,532 767,765 0.7%
Net Revenues Less Expenditures (869,297) 11,334,723 2,398,098 3,267,395
Beginning Fund Balance 23,341,440 23,341,440
Ending Fund Balance 22,472,143 25,739,538
Ending Fund Balance Detail:
General Fund Reserves 22,148,353 24,871,118
20.4%23.1%
Restricted for Annexation 323,790 868,420
Revenue Overview
Expenditures Overview
Required Ending Fund Balance Calculation
Estimated Expenditures for 2019 (from above)107,798,532
18.0%
18% GF Ending Fund Balance 19,403,736
Through June, all departments are remaining fairly close to budget with an overall budget variance of $768 thousand or
0.7%.
June 2019 Monthly Financial Report
City of Kent, Washington
General Fund Overview
Summary
Analysis through June shows an overall positive budget variance of $3.3 million.
The budgeted use of fund balance is offset by the positive budget variance of $3.3 million, creating a net surplus of
$2.4m.
General Fund Reserves are estimated to end the year at $24.9 million, or 23.1% of estimated 2019 expenditures.
Revenues are estimated to end the year approximately $2.5 million (2.3%) higher than budgeted.
2.06 0.83 0.64
4.13
7.65 9.46
11.91
18.92 20.65 21.67
24.87
0.00
5.00
10.00
15.00
20.00
25.00
30.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Est. 2019
General Fund Ending Fund Balance 10-year History (excluding Annexation)$ in
millions
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Revenue Categories 2019
Adj Budget
2019
YTD
2019
Est Actual
Variance
Favorable
(Unfavorable)
%Variance
Favorable
(Unfavorable)
Taxes:
Property 29,978,040 16,253,193 30,293,290 315,250 1.1%
Sales & Use 21,770,980 12,399,945 23,301,730 1,530,750 7.0%
Utility 19,596,150 9,881,918 19,154,210 (441,940) -2.3%
Business & Occupation 11,500,000 2,906,813 11,745,800 245,800 2.1%
Other 882,650 248,482 861,870 (20,780) -2.4%
Licenses and Permits 7,082,370 3,876,832 7,331,970 249,600 3.5%
Intergovernmental Revenue 6,720,580 3,991,314 6,473,430 (247,150) -3.7%
Charges for Services 6,001,180 3,874,747 6,496,140 494,960 8.2%
Fines and Forfeitures 1,113,790 660,227 1,241,800 128,010 11.5%
Miscellaneous Revenue 2,135,530 1,440,818 2,346,390 210,860 9.9%
Transfers In 915,730 37,631 950,000 34,270 3.7%
Total Revenues 107,697,000 55,571,922 110,196,630 2,499,630 2.3%
June 2019 Monthly Financial Report
City of Kent, Washington
General Fund Overview - Revenues
Variance analysis for revenues is provided for particular line items or those in which the estimated actual amount
differs from the budgeted amount by at least 10% or minimum of $500,000.
Variance Notes
Sales & Use Tax: $1.5m increase due to higher than anticipated sales tax revenues, including $106k in annexation
sales tax revenue, due to a strong construction economy.
Fines and Forfeitures: $128k increase due to B&O Penalties ($102k) and Court Holdings ($58k) offset by a
decrease in Civil & Criminal Penalties and Civil Costs ($32k)
2019 Estimated
General Fund
Revenues
Property Taxes
27%
Sales Taxes
21%
Utility Taxes
17%
B&O Taxes
11%
Other Taxes
1%
Licenses and
Permits
7%
Intergovernmental
7%
Charges for
Services
6%
Fines and Forfeits
Misc & Transfers In
3%
Other
16%
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Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 5,721 6,214 6,540
February 5,542 5,546 5,521
March 7,432 8,269 7,624
April 18,343 17,452 20,431
May 8,891 7,922 9,230
June 6,778 6,751 6,226
July 8,084 7,508 0
August 5,496 5,735 0
September 6,935 7,277 0
October 19,388 18,069 0
November 8,117 7,122 0
December 10,353 9,831 0
Total 111,081 107,697 55,572
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 0 10 32
February 213 225 230
March 736 953 866
April 12,768 12,204 12,268
May 1,860 2,172 2,730
June 121 158 128
July 269 111 0
August 104 110 0
September 327 591 0
October 11,934 11,603 0
November 1,432 1,589 0
December 207 251 0
Total 29,971 29,978 16,253
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 1,761 1,626 2,060
February 2,045 2,037 2,485
March 1,810 1,611 2,058
April 1,604 1,564 1,788
May 2,074 1,834 2,244
June 2,019 1,618 1,765
July 2,000 1,752 0
August 2,152 1,966 0
September 2,066 1,808 0
October 2,056 1,811 0
November 2,261 1,983 0
December 2,851 2,162 0
Total 24,699 21,771 12,400
June 2019 Monthly Financial Report
City of Kent, Washington
General Fund Revenues ($ in Thousands)
All Revenues Sources
Property Tax
Sales Tax
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
19 Bud 18 Act 19 Act
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
19 Bud 18 Act 19 Act
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
19 Bud 18 Act 19 Act
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June 2019 Monthly Financial Report
City of Kent, Washington
General Fund Revenues ($ in Thousands)
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 1,860 2,082 1,887
February 1,771 1,748 1,583
March 1,719 1,669 1,680
April 1,737 1,840 1,707
May 1,602 1,542 1,575
June 1,447 1,419 1,450
July 1,647 1,739 0
August 1,482 1,482 0
September 1,560 1,681 0
October 1,427 1,479 0
November 1,537 1,494 0
December 1,499 1,422 0
Total 19,289 19,596 9,882
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 1 6 2
February 3 14 2
March 33 261 48
April 322 1,785 2,479
May 1,688 844 543
June 223 175 81
July 2,011 2,286 0
August 340 446 0
September 145 129 0
October 2,100 2,530 0
November 252 417 0
December 3,378 3,491 0
Total 10,496 12,383 3,155
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 2,099 1,893 2,560
February 1,510 933 1,221
March 3,135 2,771 2,972
April 1,912 1,687 2,189
May 1,667 1,548 2,139
June 2,968 2,853 2,801
July 2,157 1,735 0
August 1,419 1,423 0
September 2,836 2,723 0
October 1,870 1,971 0
November 2,634 1,484 0
December 2,417 2,949 0
Total 26,625 23,969 13,882
Utility Tax
Other Taxes
Other Revenues
(Intergovernmental, Licenses & Permits, Charges for Service, Fines & Forfeits, and Misc Revenues)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
19 Bud 18 Act 19 Act
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
19 Bud 18 Act 19 Act
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
19 Bud 18 Act 19 Act
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Department 2019
Adj Budget
2019
YTD
2019
Est Actual
Variance
Favorable
(Unfavorable)
%Variance
Favorable
(Unfavorable)
City Council 439,300 195,302 410,700 28,600 6.5%
Mayor's Office/City Clerk 3,005,410 1,380,643 3,009,900 (4,490) -0.1%
Economic & Community Dev 7,374,150 3,430,662 7,215,500 158,650 2.2%
Finance 3,343,250 1,672,454 3,299,400 43,850 1.3%
Fire Contracted Services 3,905,690 1,806,340 3,761,122 144,568 3.7%
Human Resources 2,204,290 1,077,642 2,125,000 79,290 3.6%
Information Technology 528,260 250,835 511,100 17,160 3.2%
Law 1,828,780 877,284 1,806,000 22,780 1.2%
Municipal Court 3,516,080 1,768,759 3,545,900 (29,820) -0.8%
Parks, Recreation & Comm Svcs 19,134,947 8,773,239 18,856,200 278,747 1.5%
Police 42,803,350 20,947,051 42,800,900 2,450 0.0%
Public Works 1,142,280 575,008 1,116,300 25,980 2.3%
Non-Departmental 19,340,510 1,481,980 19,340,510
Total Expenditures 108,566,297 44,237,199 107,798,532 767,765 0.7%
June 2019 Monthly Financial Report
City of Kent, Washington
General Fund Overview - Expenditures
Variance analysis for expenditures is provided for particular departments or those in which the estimated actual
amount differs from the budgeted amount by at least 10% or a minimum of $500,000.
Variance Notes
None.
City Council
Mayor's Office/City
Clerk
3%
ECD
7%Finance
3%
Fire Contracted
Services
3%
Human Resources
2%
I.T.
Law
2%
Municipal Court
3%
Parks, Recreation &
Comm Svcs
18%
Police
40%
Public Works
1%
Non-Departmental
18%
Other
5%
2019 Estimated General Fund Expenditures
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2017 2018 2019 2019 2019
Actual Actual Adj Budget YTD Est Actual
Beginning Fund Balance 19,987,828 21,595,175 23,341,440 23,341,440 23,341,440
Revenues
Taxes:
Property 22,999,864 29,971,155 29,978,040 16,253,193 30,293,290
Sales & Use 21,109,277 24,699,301 21,770,980 12,399,945 23,301,730
Utility 19,648,349 19,289,162 19,596,150 9,881,918 19,154,210
Business & Occupation 9,141,800 9,422,048 11,500,000 2,906,813 11,745,800
Other 900,663 1,074,356 882,650 248,482 861,870
Licenses and Permits 6,962,130 7,557,658 7,082,370 3,876,832 7,331,970
Intergovernmental Revenue 8,102,414 7,919,860 6,720,580 3,991,314 6,473,430
Charges for Services 7,328,567 6,602,681 6,001,180 3,874,747 6,496,140
Fines and Forfeitures 1,549,964 1,360,976 1,113,790 660,227 1,241,800
Miscellaneous Revenue 2,241,585 2,233,777 2,135,530 1,440,818 2,346,390
Transfers In 934,128 950,000 915,730 37,631 950,000
Total Revenues 100,918,740 111,080,973 107,697,000 55,571,922 110,196,630
Expenditures
City Council 349,577 344,160 439,300 195,302 410,700
Mayor's Office/City Clerk 2,745,792 2,759,974 3,005,410 1,380,643 3,009,900
Economic & Community Dev 5,841,098 6,675,576 7,374,150 3,430,662 7,215,500
Finance 2,522,554 3,061,472 3,343,250 1,672,454 3,299,400
Fire Contracted Services 3,668,180 3,619,385 3,905,690 1,806,340 3,761,122
Human Resources 1,835,276 2,075,553 2,204,290 1,077,642 2,125,000
Information Technology 521,151 506,265 528,260 250,835 511,100
Law 1,600,451 1,673,438 1,828,780 877,284 1,806,000
Municipal Court 3,128,652 3,442,107 3,516,080 1,768,759 3,545,900
Parks, Recreation & Comm Svcs 16,655,356 17,992,171 19,134,947 8,773,239 18,856,200
Police 37,167,622 39,315,958 42,803,350 20,947,051 42,800,900
Public Works 1,111,563 1,155,562 1,142,280 575,008 1,116,300
Non-Departmental 22,164,122 26,706,702 19,340,510 1,481,980 19,340,510
Total Expenditures 99,311,394 109,328,323 108,566,297 44,237,199 107,798,532
Net Revenues less Expenditures 1,607,347 1,752,650 (869,297) 11,334,723 2,398,098
Ending Fund Balance 21,595,175 23,347,825 22,472,143 34,676,162 25,739,538
Ending Fund Balance Detail:
General Fund Reserves 20,654,415 21,666,605 22,148,353 24,871,118
based on same year actuals/budget 20.8% 19.8% 20.4% 23.1%
Restricted for Annexation 940,760 1,681,220 323,790 868,420
June 2019 Monthly Financial Report
City of Kent, Washington
General Fund
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2017 2018 2019 % of
thru June thru June thru June Budget
Revenues
Taxes:
Property 12,108,519 15,697,802 16,253,193 555,392 3.5%54.2%
Sales & Use 10,191,237 11,312,838 12,399,945 1,087,108 9.6%57.0%
Utility 10,353,641 10,135,978 9,881,918 (254,059) -2.5%50.4%
Business & Occupation 2,559,012 1,934,400 2,906,813 972,413 50.3%25.3%
Other 269,831 335,365 248,482 (86,883) -25.9%28.2%
Licenses and Permits 2,911,948 3,882,775 3,876,832 (5,942) -0.2%54.7%
Intergovernmental Revenue 4,055,689 4,068,988 3,991,314 (77,673) -1.9%59.4%
Charges for Services 3,470,919 3,663,777 3,874,747 210,970 5.8%64.6%
Fines and Forfeitures 903,723 598,380 660,227 61,847 10.3%59.3%
Miscellaneous Revenue 1,039,098 1,076,976 1,440,818 363,842 33.8%67.5%
Transfers In - - 37,631 37,631 4.1%
Total Revenues 47,863,617 52,707,277 55,571,922 2,864,644 5.4%51.6%
Expenditures
City Council 178,151 180,277 195,302 15,025 8.3%44.5%
Mayor's Office/City Clerk 1,139,336 1,161,917 1,380,643 218,725 18.8%45.9%
Economic & Community Dev 2,775,093 3,370,795 3,430,662 59,868 1.8%46.5%
Finance 1,196,469 1,532,044 1,672,454 140,410 9.2%50.0%
Fire Contracted Services 1,890,372 1,645,682 1,806,340 160,657 9.8%46.2%
Human Resources 893,390 1,045,097 1,077,642 32,545 3.1%48.9%
Information Technology 281,141 253,349 250,835 (2,514) -1.0%47.5%
Law 774,087 857,871 877,284 19,414 2.3%48.0%
Municipal Court 1,555,907 1,641,308 1,768,759 127,452 7.8%50.3%
Parks, Recreation & Comm Svcs 7,840,936 8,353,493 8,773,239 419,746 5.0%45.8%
Police 18,060,373 19,344,704 20,947,051 1,602,347 8.3%48.9%
Public Works 603,155 573,529 575,008 1,479 0.3%50.3%
Non-Departmental 2,410,597 3,755,724 1,481,980 (2,273,744) -60.5%7.7%
Total Expenditures 39,599,008 43,715,790 44,237,199 521,409 1.2%40.7%
*General Govt. includes City Council, Mayor/Clerk, HR, IT, & Finance
Variance
June 2019 Monthly Financial Report
City of Kent, Washington
General Fund
Year-to-Year Month Comparison
2019-18
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
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Sales &
Use Taxes
Utility
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Other
Revenues
GF Revenues thru June
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2018
2019
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5,000,000
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Beginning Fund
Balance
Estimated
Revenues
Estimated
Expenditures
Ending Fund
Balance
Operating revenues and expenditures only; capital and non-capital projects are excluded.
General Fund 23,341,440 110,196,630 107,798,532 25,739,538
Street Fund 5,416,967 18,640,720 19,630,190 4,427,497
LEOFF 1 Retiree Benefits 1,872,112 1,179,590 1,423,000 1,628,702
Lodging Tax 336,765 295,630 510,790 121,605
Youth/Teen Programs 91,846 957,730 957,730 91,846
Capital Resources 15,599,192 17,362,480 22,601,850 10,359,822
Criminal Justice 7,247,796 6,358,530 6,087,720 7,518,606
ShoWare Operating 2,563,460 1,159,000 1,423,790 2,298,670
Other Operating 587,401 112,670 112,670 587,401
Councilmanic Debt Service 1,451,046 10,266,810 9,803,310 1,914,546
Special Assessments Debt Service 479,916 1,305,380 1,119,460 665,836
Water Utility 20,822,197 29,667,610 36,221,310 14,268,497
Sewer Utility 6,829,754 31,820,310 31,667,540 6,982,524
Drainage Utility 17,562,223 23,533,520 29,677,130 11,418,613
Solid Waste Utility 466,749 895,230 874,520 487,459
Golf Complex (1,110,421) 2,638,000 2,660,000 (1,132,421)
Fleet Services 5,869,149 6,707,070 7,593,290 4,982,929
Central Services 15,044 396,000 387,290 23,754
Information Technology 3,348,099 8,916,250 9,078,180 3,186,169
Facilities 2,316,961 5,769,380 5,104,090 2,982,251
Unemployment 1,401,222 121,700 313,610 1,209,312
Workers Compensation 3,478,730 1,094,000 1,456,980 3,115,750
Employee Health & Wellness 3,886,427 15,052,030 13,011,440 5,927,017
Liability Insurance 878,314 1,810,690 2,017,600 671,404
Property Insurance 607,537 1,365,920 1,332,100 641,357
General Fund
Special Revenue Funds
Debt Service Funds
Enterprise Funds
Internal Service Funds
Fund Balances
June 2019 Monthly Financial Report
City of Kent, Washington
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Actual Actual Budget YTD Est Actual
Operating revenues and expenditures only; capital and non-capital projects are excluded.
In instances where expenditures exceed revenues, fund balance is being utilized.
Street Fund
Revenues 14,407,771 15,241,855 17,345,420 6,949,074 18,640,720
Expenditures 12,511,397 15,698,374 19,630,192 7,611,352 19,630,190
Net Revenues Less Expenditures 1,896,373 (456,519)(2,284,772)(662,278)(989,470)
LEOFF 1 Retiree Benefits
Revenues 1,285,285 1,948,504 1,179,590 95,355 1,179,590
Expenditures 1,163,174 1,372,764 1,423,000 699,387 1,423,000
Net Revenues Less Expenditures 122,111 575,740 (243,410)(604,032)(243,410)
Lodging Tax
Revenues 316,975 320,774 294,830 120,948 295,630
Expenditures 328,804 441,566 510,790 199,987 510,790
Net Revenues Less Expenditures (11,830)(120,791)(215,960)(79,039)(215,160)
Youth/Teen Programs
Revenues 955,757 928,958 957,730 478,257 957,730
Expenditures 942,000 942,000 957,730 957,730
Net Revenues Less Expenditures 13,757 (13,042)478,257
Capital Resources
Revenues 19,948,247 22,962,097 16,169,310 8,049,723 17,362,480
Expenditures 15,579,639 23,009,239 22,601,850 3,161,111 22,601,850
Net Revenues Less Expenditures 4,368,607 (47,142)(6,432,540)4,888,612 (5,239,370)
Criminal Justice
Revenues 6,032,589 5,141,297 6,300,130 2,606,155 6,358,530
Expenditures 4,533,302 5,090,504 6,087,720 3,273,366 6,087,720
Net Revenues Less Expenditures 1,499,287 50,792 212,410 (667,212)270,810
ShoWare Operating
Revenues 1,355,226 1,502,759 1,150,000 132,763 1,159,000
Expenditures 1,067,836 1,373,763 1,423,790 529,590 1,423,790
Net Revenues Less Expenditures 287,390 128,996 (273,790)(396,827)(264,790)
Other Operating
Revenues 129,338 133,288 112,670 112,670
Expenditures 40,094 72,045 112,670 72,674 112,670
Net Revenues Less Expenditures 89,244 61,243 (72,674)
Councilmanic Debt Service
Revenues 10,781,229 10,535,010 10,266,810 2,510,901 10,266,810
Expenditures 10,316,403 10,070,185 9,803,310 2,533,468 9,803,310
Net Revenues Less Expenditures 464,826 464,826 463,500 (22,567)463,500
Special Assessment Debt Service
Revenues 1,979,573 1,458,264 1,305,380 440,636 1,305,380
Expenditures 2,585,818 1,561,009 1,119,460 436,072 1,119,460
Net Revenues Less Expenditures (606,245)(102,745)185,920 4,564 185,920
Debt Service Funds
June 2019 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Special Revenue Funds
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Actual Actual Budget YTD Est Actual
Operating revenues and expenditures only; capital and non-capital projects are excluded.
In instances where expenditures exceed revenues, fund balance is being utilized.
June 2019 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Water Utility
Revenues 28,209,235 29,438,960 29,589,060 14,794,532 29,667,610
Expenditures 26,577,932 28,004,249 36,221,310 10,427,374 36,221,310
Net Revenues Less Expenditures 1,631,303 1,434,710 (6,632,250)4,367,158 (6,553,700)
Sewer Utility
Revenues 31,820,310 16,180,823 31,820,310
Expenditures 31,667,540 14,355,108 31,667,540
Net Revenues Less Expenditures 152,770 1,825,715 152,770
Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018.
Drainage Utility
Revenues 54,240,288 57,343,023 23,343,620 12,372,978 23,533,520
Expenditures 49,060,469 56,879,160 29,677,130 7,184,531 29,677,130
Net Revenues Less Expenditures 5,179,819 463,863 (6,333,510)5,188,448 (6,143,610)
Solid Waste Utility
Revenues 754,868 799,794 892,980 337,019 895,230
Expenditures 577,964 812,476 874,520 371,946 874,520
Net Revenues Less Expenditures 176,904 (12,682)18,460 (34,927)20,710
Golf Complex
Revenues 3,027,079 9,229,538 2,819,210 1,217,934 2,638,000
Expenditures 3,081,308 6,467,553 2,963,220 1,365,106 2,660,000
Net Revenues Less Expenditures (54,229)2,761,985 (144,010)(147,172)(22,000)
Fleet Services
Revenues 5,480,210 5,686,534 6,707,070 4,461,276 6,707,070
Expenditures 4,164,630 7,286,339 7,593,290 3,475,128 7,593,290
Net Revenues Less Expenditures 1,315,580 (1,599,805)(886,220)986,148 (886,220)
Central Services
Revenues 350,602 375,410 447,090 190,040 396,000
Expenditures 290,147 357,253 387,290 163,954 387,290
Net Revenues Less Expenditures 60,455 18,157 59,800 26,086 8,710
Information Technology
Revenues 8,173,478 8,416,261 9,116,700 4,888,326 8,916,250
Expenditures 8,175,302 8,676,906 9,078,180 4,013,012 9,078,180
Net Revenues Less Expenditures (1,824)(260,645)38,520 875,314 (161,930)
Facilities
Revenues 4,737,520 4,941,020 5,754,880 2,627,069 5,769,380
Expenditures 4,761,950 4,933,077 5,838,050 2,088,039 5,104,090
Net Revenues Less Expenditures (24,429)7,943 (83,170)539,030 665,290
Unemployment
Revenues 167,215 158,565 121,700 81,725 121,700
Expenditures 75,154 181,851 313,610 123,733 313,610
Net Revenues Less Expenditures 92,061 (23,286)(191,910)(42,008)(191,910)
Enterprise Funds
Internal Service Funds
Note: Golf revenues include proceeds from the sale of land of $500k in 2017 and $6m in 2018. 2018 Exp include
$3.3m transfer to Capital Projects
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Actual Actual Budget YTD Est Actual
Operating revenues and expenditures only; capital and non-capital projects are excluded.
In instances where expenditures exceed revenues, fund balance is being utilized.
June 2019 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Workers Compensation
Revenues 1,082,091 1,829,452 1,094,000 612,554 1,094,000
Expenditures 1,013,278 725,048 1,456,980 574,702 1,456,980
Net Revenues Less Expenditures 68,813 1,104,404 (362,980)37,852 (362,980)
Employee Health & Wellness
Revenues 11,707,967 13,857,791 15,052,030 7,566,241 15,052,030
Expenditures 13,428,552 12,931,931 14,898,160 6,638,790 13,011,440
Net Revenues Less Expenditures (1,720,584)925,860 153,870 927,451 2,040,590
Liability Insurance
Revenues 2,087,755 1,950,908 1,810,690 1,096,600 1,810,690
Expenditures 2,180,680 2,733,726 2,017,600 1,398,374 2,017,600
Net Revenues Less Expenditures (92,925)(782,818)(206,910)(301,775)(206,910)
Property Insurance
Revenues 556,770 587,906 1,365,920 1,033,328 1,365,920
Expenditures 436,283 632,404 1,332,100 501,304 1,332,100
Net Revenues Less Expenditures 120,487 (44,498)33,820 532,024 33,820
0
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60,000,000
80,000,000
100,000,000
120,000,000
2017
Actuals
2018
Actuals
2019
Budget
2019
Est.
Actuals
Other Fund Revenues
Special
Revenue
Funds
Enterprise
Funds
Internal
Service
Funds
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
General Fund Special Revenue
Funds
Enterprise Funds Internal Service
Funds
2019 Estimated Fund Balances
Beginning
Balance
Estimated
Ending Balance
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
2017
Actuals
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Actuals
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Est.
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Funds
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thru June thru June thru June
Operating revenues and expenditures only; capital and non-capital projects are excluded.
Street Fund
Revenues 5,463,195 5,668,922 6,949,074 1,280,152 22.6%
Expenditures 5,377,270 6,661,636 7,611,352 949,715 14.3%
Net Revenues Less Expenditures 85,924 (992,715)(662,278)
LEOFF 1 Retiree Benefits
Revenues 485,753 381,608 95,355 (286,253)-75.0%
Expenditures 596,874 746,764 699,387 (47,377)-6.3%
Net Revenues Less Expenditures (111,121)(365,156)(604,032)
Lodging Tax
Revenues 114,812 118,910 120,948 2,038 1.7%
Expenditures 88,826 184,775 199,987 15,212 8.2%
Net Revenues Less Expenditures 25,986 (65,864)(79,039)
Youth/Teen Programs
Revenues 514,018 500,188 478,257 (21,931)-4.4%
Expenditures
Net Revenues Less Expenditures 514,018 500,188 478,257
Capital Resources
Revenues 8,139,197 9,430,999 8,049,723 (1,381,276)-14.6%
Expenditures 2,188,613 2,709,213 3,161,111 451,898
Net Revenues Less Expenditures 5,950,583 6,721,786 4,888,612
Criminal Justice
Revenues 2,324,665 2,366,315 2,606,155 239,840 10.1%
Expenditures 2,084,152 2,120,557 3,273,366 1,152,809 54.4%
Net Revenues Less Expenditures 240,513 245,758 (667,212)
ShoWare Operating
Revenues 108,389 245,714 132,763 (112,951)-46.0%
Expenditures 195,064 403,928 529,590 125,662 31.1%
Net Revenues Less Expenditures (86,675)(158,214)(396,827)
Admissions Tax revenues received quarterly (April, July, September, January)
Other Operating
Revenues 5,000 (5,000)-100.0%
Expenditures 3,142 27,047 72,674 45,627 168.7%
Net Revenues Less Expenditures (3,142)(22,047)(72,674)
Combines several small programs, including City Art Program and Neighborhood Matching Grants
Special Revenue Funds
Variance
June 2019 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Year-to-Year Month Comparison
2019-18
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Operating revenues and expenditures only; capital and non-capital projects are excluded.
Variance
June 2019 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Year-to-Year Month Comparison
2019-18
Councilmanic Debt Service
Revenues 2,721,443 2,620,517 2,510,901 (109,616)-4.2%
Expenditures 2,721,443 2,620,517 2,533,468 (87,049)-3.3%
Net Revenues Less Expenditures (22,567)
Debt service payments are generally due in June and December.
Special Assessments Debt Service
Revenues 770,706 536,531 440,636 (95,894)-17.9%
Expenditures 196,552 188,577 436,072 247,495 131.2%
Net Revenues Less Expenditures 574,154 347,954 4,564
Water Utility
Revenues 12,621,056 13,113,205 14,794,532 1,681,326 12.8%
Expenditures 9,721,751 10,612,829 10,427,374 (185,455)-1.7%
Net Revenues Less Expenditures 2,899,305 2,500,376 4,367,158
Sewer Utility
Revenues 16,180,823 16,180,823
Expenditures 14,355,108 14,355,108
Net Revenues Less Expenditures 1,825,715
Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018.
Drainage Utility
Revenues 25,876,647 27,846,325 12,372,978 (15,473,347)-55.6%
Expenditures 22,791,783 21,388,358 7,184,531 (14,203,828)-66.4%
Net Revenues Less Expenditures 3,084,864 6,457,967 5,188,448
Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018.
Solid Waste Utility
Revenues 300,638 321,873 337,019 15,146 4.7%
Expenditures 239,901 412,653 371,946 (40,707)-9.9%
Net Revenues Less Expenditures 60,737 (90,780)(34,927)
Golf Complex
Revenues 1,129,585 7,173,950 1,217,934 (5,956,015)-83.0%
Expenditures 1,316,564 1,181,338 1,365,106 183,768 15.6%
Net Revenues Less Expenditures (186,979)5,992,612 (147,172)
2018 Revenues include $6m in proceeds from the sale of land.
Fleet Services
Revenues 2,460,633 2,440,542 4,461,276 2,020,734 82.8%
Expenditures 1,740,170 2,479,456 3,475,128 995,672 40.2%
Net Revenues Less Expenditures 720,463 (38,914)986,148
Central Services
Revenues 175,462 214,324 190,040 (24,284)-11.3%
Expenditures 137,682 205,348 163,954 (41,394)-20.2%
Net Revenues Less Expenditures 37,781 8,976 26,086
Debt Service Funds
Enterprise Funds
Internal Service Funds
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Operating revenues and expenditures only; capital and non-capital projects are excluded.
Variance
June 2019 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Year-to-Year Month Comparison
2019-18
Information Technology
Revenues 3,965,252 4,147,658 4,888,326 740,667 17.9%
Expenditures 2,649,806 4,041,675 4,013,012 (28,664)-0.7%
Net Revenues Less Expenditures 1,315,446 105,983 875,314
Facilities
Revenues 2,327,116 2,435,915 2,627,069 191,154 7.8%
Expenditures 1,978,506 1,985,735 2,088,039 102,304 5.2%
Net Revenues Less Expenditures 348,611 450,179 539,030
Unemployment
Revenues 93,054 71,481 81,725 10,245 14.3%
Expenditures 34,777 97,825 123,733 25,908 26.5%
Net Revenues Less Expenditures 58,277 (26,344)(42,008)
Workers Compensation
Revenues 523,049 520,912 612,554 91,642 17.6%
Expenditures 545,162 545,678 574,702 29,024 5.3%
Net Revenues Less Expenditures (22,113)(24,766)37,852
Employee Health & Wellness
Revenues 5,422,709 6,590,968 7,566,241 975,273 14.8%
Expenditures 6,988,225 6,831,995 6,638,790 (193,205)-2.8%
Net Revenues Less Expenditures (1,565,517)(241,027)927,451
Liability Insurance
Revenues 1,451,197 852,219 1,096,600 244,381 28.7%
Expenditures 2,221,565 1,491,174 1,398,374 (92,800)-6.2%
Net Revenues Less Expenditures (770,369)(638,955)(301,775)
Property Insurance
Revenues 279,967 287,795 1,033,328 745,533 259.0%
Expenditures 221,600 222,713 501,304 278,591 125.1%
Net Revenues Less Expenditures 58,367 65,083 532,024
0
10,000,000
20,000,000
30,000,000
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50,000,000
60,000,000
Special Revenue
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Enterprise
Funds
Internal Service
Funds
Other Fund Revenues thru June
2017
2018
2019
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15,000,000
20,000,000
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35,000,000
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Internal Service
Funds
Other Fund Expenditures thru June
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t
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c
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m
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n
t
:
J
u
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e
2
0
1
9
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(
1
9
4
1
:
J
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F
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)