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HomeMy WebLinkAboutCity Council Committees - Public Works/Planning - 04/21/2004 1 Public Works Committee Agenda 40 A. Councilmembers: Brenda Fincher • Dana Ralph • Dennis Higgins, Chair �� KENT WASHINGTON April 21, 2014 4:00 p.m. Item Description Action Speaker Time Page 1. Approval of Meeting Minutes for April 7, 2014 YES None 03 03 2. Telecommunications Franchise with tw telecom YES Chad Bieren 05 07 of washington Ilc 3. Puget Sound Energy Conversion - Schedule 74 YES Toby Hallock 05 59 Design Agreement for State Route 516 to S. 231" Way/Russell Road Upper Levee-James Street & Russell Road Intersection South Reach Levee 4. Information Only/Safe Routes to School Grant NO Monica Whitman 05 71 Funding - Local Match Unless otherwise noted, the Public Works Committee meets at 4:00 p.m. on the 1"& 3rd Mondays of each month. Council Chambers East, Kent City Hall, 220 4th Avenue South, Kent, 98032-5895. For information please contact Public Works Administration (253) 856-5500. Any person requiring a disability accommodation should contact the City Clerk's Office at (253) 856-5725 in advance. For TDD relay service call the Washington Telecommunications Relay Service at 1-800-833-6388. z This page intentionally left blank. 3 Public Works Committee Minutes April 7, .2014 COMMITTEE MEMBERS PRESENT: Committee members Dana Ralph and Brenda Fincher were present. Committee Chair Dennis Higgins was excused from the meeting. The meeting was called to order at 4:02 p.m. Item 1 — Approval of Meeting Minutes Dated March 17, 2014: Committee member Fincher MOVED to approve the minutes of March 17, 2014. The motion was SECONDED by Committee member Ralph and PASSED 3-0, with Committee Chair Higgins' concurrence. Item 2 —Goods &Services Agreement for Metal Work at the Green River Natural Resources Area: Kelly Peterson, Special Projects Manager, presented pictures of the four locations within the Green River Natural Resources Area that have experienced vandalism and metal theft. He stated that this contract will repair, supply, fabricate and install handrails, walking grates, and water level sensor mounts making these sites safe and functional for staff to operate. Peterson noted that missing aluminum parts will be replaced with painted steel and welded which will make it less desirable to be stolen. Committee member Fincher MOVED to recommend Council authorize the Mayor to sign a Public Works Agreement with Site Welding, Inc. in an amount not to exceed $37,182.92 to repair, fabricate and install handrails, grating and sensor mounts at the Green River Natural Resources Area, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. The motion was SECONDED by Committee member Ralph and PASSED 3-0, with Committee Chair Higgins' concurrence. Item 3 — Consultant Agreement with Aspect for Landsburg Mine: Kelly Peterson, Special Projects Manager, gave an update of the Landsburg Mine which is located east of Clark Springs, the city's primary water supply. He noted that Kent staff has met with Ecology officials to discuss the cleanup action plan and will meet with Ecology staff in the near future to continue to discuss Kent's concerns. Peterson stated that Aspect Consulting is needed to provide technical guidance during the finalization of the cleanup action plan. Committee member Fincher MOVED to recommend Council authorize the Mayor to sign a consultant services agreement with Aspect Consulting for engineering services related to the Landsburg Mine site in the amount of $12,690, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. The motion was SECONDED by Committee member Ralph and PASSED 3-0, with Committee Chair Higgins' concurrence. Item 4 — Consultant Services Agreement with GeoEngineers for Briscoe Levee Inspection: Paul Kuehne, Construction Supervisor, noted that this contract is for materials testing, construction inspection, and lab work associated with Briscoe Levees Reaches 2 and 3. He also noted that taking concrete compression tests will ensure the concrete meets specifications, and 4 Public Works Committee Minutes April 7, .2014 sieve analysis of soils ensure proper gradation. Kuehne stated that this information will be utilized through this testing and inspection for certification of the levee and also provides relief for peak construction season activities where the on-staff personnel are stretched thin. Committee member Fincher MOVED to recommend Council authorize the Mayor to sign a consultant services agreement with GeoEngineers, in an amount not to exceed $177,372 for materials testing and inspection services related to the Briscoe-Desimone Levee Reaches 2 & 3 project, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. The motion was SECONDED by Committee member Ralph and PASSED 3-0, with Committee Chair Higgins' concurrence. Item 5 — Info Only/Water Festival Recap: Gina Hungerford, Conservation Coordinator, provided a recap of the 2014 Water Festival which Kent hosted at Green River Community College on March 25 & 26, with approximately 1,608 fourth and fifth grade students along with teachers and parent chaperones. She mentioned that there were 37 presenters from both in-house and outside agencies. Hungerford presented a power point of the environmental topics that the students participated in during this event. She noted that for more information she can be reached at GHungerford@KentWA.gov. Information Only/No Motion Required Item 6 — Information Only/National Pollutant Discharge Elimination System Appeal Settlement: Todd Hunsdorfer, Conservation Coordinator with Environmental Engineering gave an update on summary results from the most recent permit appeal regarding the National Pollutant Discharge Elimination System permit, which is part of the Federal Clean Water Act. Hunsdorfer also gave an overview of the requirements and compliance process. Information Only/No Motion Required Item 7 - Information Only/ Traffic Calming: Chad Bieren, City Engineer, gave an update of the current eligible projects for traffic calming device installation. Three neighborhood streets have been involved in the Residential Traffic Calming Program and have met all eligibility requirements. At this time, $250,000 is available in the Street Operating Fund for these projects. City Attorney Brubaker explained how the funding became available. Committee member Fincher MOVED to recommend Council authorize $250,000 for the installation of residential traffic calming projects on 42nd Ave. S, 3001h Ave. SE, and 223rd Dr./2241h St., and to adjust the budget accordingly. The motion was SECONDED by Committee member Ralph and PASSED 3-0, with Committee Chair Higgins' concurrence. 5 Public Works Committee Minutes April 7, .2014 Item 8 — Information Only/Slope Stability in Kent: Public Works Director LaPorte, explained why this item was included and that the Oso landslide in Snohomish County, has brought attention to landslides. He said there are qualified staff here that are quite knowledgeable about landslides and there are decades of analysis of our slope stability. Kelly Peterson described how the Kent valley was formed, and the different type of landslide that occurred in Oso versus the type Kent would more likely experience. The Kent area is more likely to have a translational slide, wherein the top layer of material slips off. The Oso slide was a block slide of much higher volume than is typically experienced in a translational slide. Information Only/No Motion Required Item 9 — Information Only/S. 2121h and 2281h Railroad Grade Separations: Public Works Director LaPorte provided an overview of the continuing research and will make recommendations to the Committee on how to proceed and will meet with the Freight Mobility Board in May and give them options on how to these projects. Information Only/No Motion Required The meeting was adjourned at 5:11 p.m. Mary Simmons Council Committee Recorder 6 This page intentionally left blank. 7 PUBLIC WORKS DEPARTMENT Timothy J. LaPorte P.E., Public Works Director Phone: 253-856-5500 KEN T Fax: 253-856-6500 WASH IN GTO N Address: 220 Fourth Avenue S. Kent, WA 98032-5895 Date: April 11, 2014 To: Chair Dennis Higgins and Public Works Committee Members PW Committee Meeting Date: April 21, 2014 From: Mark Howlett, PE, Design Engineering Manager Through: Chad Bieren, P.E., City Engineer Subject: Telecommunications franchise with tw telecom of Washington Ilc Item - 2 Motion: Move to recommend Council authorize the Mayor to sign an ordinance granting tw telecom of Washington Ilc a franchise to install and maintain facilities for a telecommunications network within the public rights-of-way of the City, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. Summary: tw telecom of Washington Ilc (Time Warner) is a telecommunications company that wishes to install and operate telecommunications equipment in the city's streets. This equipment will be used to provide data, dedicated internet access, and local and long distance voice services. tw telecom has requested that the City grant them a franchise laying out the terms and conditions under which this equipment is installed and the services provided. Pursuant to RCW 35A.47.040 the City has the authority to grant non-exclusive franchises for use of public streets and other rights-of-way. This franchise does not grant tw telecom authority to install any facilities without first obtaining appropriate permits, leases, easements, or other approvals as required. Budget Impact: The city is able to recover the costs of drafting and processing the franchise. Permit fees for specific projects would be charged separately. By law, the city is not able to charge a franchise fee; however, we will be able to charge utility taxes on gross receipts. 8 This page intentionally left blank. 9 ORDINANCE NO. AN ORDINANCE of the city council of the city of Kent, Washington, granting to tw telecom of Washington, Ilc, and its successors and assigns, the right, privilege, authority and nonexclusive franchise for ten years, to construct, maintain, operate, replace and repair a telecommunications network, in, across, over, along, under, through and below certain designated public rights-of-way of the City of Kent, Washington. RECITALS 1. tw telecom of washington Ilc ("Franchisee") has requested that the city council grant it a nonexclusive franchise, and 2. 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. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. - Franchise Granted. {ERz1164422.DocX;4i00085.080003i> 1 Franchise — tw telecom 10 1.1 Pursuant to RCW 35A.47.040, the city of Kent, a Washington municipal corporation (the "City"), grants to Franchisee, its successors, legal representatives and assigns, subject to the terms and conditions set forth below, a Franchise for a period of ten (10) years, beginning on the effective date of this ordinance, set forth in Section 39. 1.2 This Franchise grants Franchisee the right, privilege, and authority to construct, operate, maintain, replace, acquire, sell, lease, and use all necessary Facilities for a telecommunications network in, under, on, across, over, through, along or below the public Rights-of-Ways located in the City of Kent, including such additional areas as may be subsequently included in the corporate limits of the City during the term of this Franchise (the "Franchise Area"), as approved pursuant to City permits issued pursuant to Section 8.2. The phrase "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, excluding railroad right-of-way, airports, harbor areas, buildings, parks, poles, conduits, dedicated but un- opened right-of-way, 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. "Facilities" as used in this Franchise means one or more elements of Franchisee's telecommunications network, with all necessary cables, wires, conduits, ducts, pedestals, antennas, electronics, and other necessary appurtenances; provided that new utility poles for overhead wires or cabling are specifically excluded. Equipment enclosures with air conditioning or other noise generating equipment are also excluded from "Facilities," to the extent such equipment is located in zoned residential areas of the City. {ERz1164422.DocX;4i00085.080003i> 2 Franchise — tw telecom 11 SECTION 2, - Authority Limited to Occupation of Public Rights-of- Way. 2.1 The authority granted by this Franchise is a limited, non-exclusive authorization to occupy and use the City's Rights-of-Way. Franchisee represents that it currently provides or expects to provide the following services within the City: Franchisee provides data, dedicated internet access, and local and long distance voice services, including IP voice services (the "Services"). Nothing contained 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. A more detailed description of Franchisee's telecommunications system and Services is described in Exhibit A. If Franchisee desires to expand the Services provided within the City, it shall provide written notification of the addition of such services prior to the addition of the service or within a reasonable time (not to exceed ninety (90) days) after such services are offered; provided, however, that Franchisee may not offer Cable Services pursuant to Section 2.3. 2.2 As described in Section 8, construction is not authorized without the appropriate permits, leases, easements, or approvals. This Franchise does not and shall not convey any right to Franchisee to install its Facilities on, under, over, across, or to otherwise use City owned or leased properties of any kind outside of the incorporated area of the City or to install Facilities on, under, over, across, or otherwise use any City owned or leased property other than the City's Rights-of-Way. This Franchise does not convey any right to Franchisee to install its Facilities on, under, over, or across any facility or structure owned by a third-party without such written approval of the third-party. No substantive expansions, additions to, or modifications or relocation of any of the Facilities shall be permitted without first having received appropriate permits from the City pursuant to {ERz1164422.DocX;4i00085.080003i> 3 Franchise — tw telecom 12 Section 8.2. As of the effective date of this Franchise, Franchisee has no owned Facilities located in the City's Rights-of-Way. 2.3 Under this Franchise, the Facilities shall not be used for Cable Services as that term is defined in 47 U.S.C. § 522(6). 2.4 Franchisee shall have the right, without prior City approval, to offer or provide capacity or bandwidth to its customers consistent with this Franchise provided: a. Franchisee at all times retains exclusive 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 d. No such customer or lessee may use the telecommunications system or Services for any purpose not authorized by this Franchise. SECTION 3, - Non-Exclusive Franchise Grant. This Franchise is granted upon the express condition that it shall not in any manner prevent the City from granting other or further franchises in, along, over, through, under, below, or across any Rights-of-Way. This Franchise shall in no way prevent or prohibit the City from using any Rights-of-Way or affect its jurisdiction over any Rights-of-Way or any part of Right-of-Way, and the City shall retain power to make all necessary changes, relocations, repairs, maintenance, establishment, improvement, dedication of Right-of-Way as the City may deem fit, including the dedication, establishment, {ERz1164422.DocX;4i00085.080003i> 4 Franchise - tw telecom 13 maintenance, and improvement of all new Rights-of-Way, thoroughfares, and other public properties of every type and description. SECTION 4. - Location of Telecommunications Facilities. Franchisee is maintaining a telecommunications network consisting of Facilities within the City. Franchisee may locate its Facilities anywhere within the Franchise Area consistent with the City's Design and Construction Standards and subject to the City's applicable permit requirements. Franchisee shall not be required to amend this Franchise to construct or acquire Facilities within the Franchise Area. SECTION 5, - Relocation of Facilities. 5.1 Franchisee agrees and covenants to protect, support, temporarily disconnect, relocate, or remove from any Rights-of-Way any of its Facilities when reasonably required by the City by reason of traffic conditions or public safety, dedications of new Rights-of-Way and the establishment and improvement thereof, widening and improvement of existing Rights-of-Way, 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, provided that Franchisee shall in all such cases have the privilege to temporarily bypass in the authorized portion of the same Rights-of-Way upon approval by the City, which approval shall not unreasonably be withheld or delayed, any Facilities required to be temporarily disconnected or removed. Except as otherwise provided by law, the costs and expenses associated with relocations ordered pursuant to this Section 5.1 shall be borne by Franchisee. Nothing contained within this Franchise shall limit Franchisee's ability to seek reimbursement for relocation costs when permitted by RCW 35.99.060. {ERz1164422.DocX;4i00085.080003i> 5 Franchise — tw telecom 14 5.2 Upon request of the City 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 City's improvements 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) days' written notice prior to any excavation or exposure of Facilities. 5.3 If the City determines that the project necessitates the relocation of Franchisee's existing Facilities, the City shall: a. At least thirty (30) days prior to commencing the project, provide Franchisee with written notice requiring such relocation; 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. 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 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 at least ten (10) days prior to commencement of the City's project 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 City's project. In {ERz1164422.DocX;4i00085.080003i> 6 Franchise — tw telecom 15 the event of an emergency situation, Franchisee shall relocate its Facilities within the time period specified by the City, recognizing that certain emergencies may require a shorter timeframe. 5.4 Franchisee may, after receipt of written notice requesting a relocation of its Facilities, submit to the City written alternatives to such relocation. Such alternatives must be submitted to the City at least thirty (30) days prior to commencement of the project. The City shall evaluate the alternatives and advise Franchisee in writing if one or more of the alternatives are suitable to accommodate the work that would otherwise necessitate relocation of the Facilities. If so requested by the City, Franchisee shall submit at its sole cost and expense additional information to assist the City in making such evaluation. The City shall give each alternative proposed by Franchisee full and fair consideration. In the event the City ultimately determines that there is no other reasonable or feasible alternative, Franchisee shall relocate its Facilities as otherwise provided in this Section 5. 5.5 The provisions of this Section 5 shall in no manner preclude or restrict Franchisee from making any arrangements it may deem appropriate when responding to a request for relocation of its Facilities by any person or entity other than the City, where the facilities to be constructed by said person or entity are not or will not become City- owned, operated, or maintained facilities, provided that such arrangements do not unduly delay a City construction project. 5.6 Franchisee will indemnify, hold harmless, and pay the costs of defending the City, in accordance with the provisions of Section 17.3, against any and all claims, suits, actions, damages, or liabilities for delays on City construction projects caused by or arising out of the failure of Franchisee to remove or relocate its Facilities in a timely manner; provided, that Franchisee shall not be responsible for damages due to {ERZll64422.DocX;4i00085.080003i> 7 Franchise — tw telecom 16 delays caused by circumstances beyond the control of Franchisee or the negligence, willful misconduct, or unreasonable delay of the City or any unrelated third party. 5.7 Whenever any person shall have obtained permission from the City to use any Right-of-Way for the purpose of moving any building, Franchisee, upon thirty (30) days' written notice from the City, shall raise, remove, or relocate to another part of the Right-of-Way, at the expense of the person desiring to move the building, any of Franchisee's Facilities that may obstruct the removal of such building. 5.8 If Franchisee fails, neglects, or refuses to remove or relocate its Facilities as directed by the City following the procedures outlined in Section 5.1 through Section 5.4 the City may perform such work or cause it to be done, and the City's costs shall be paid by Franchisee pursuant to Section 15.3 and Section 15.4. 5.9 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. Additionally, the provisions of Section 5 are applicable only so long as the Right-of-Way is owned and/or controlled by the City. SECTION 6, - Underaroundina of Facilities. 6.1 Except as specifically authorized by permit of the City, Franchisee shall not be permitted to erect poles or to run or suspend wires, cables, or other facilities on existing poles, but shall lay wires, cables, or other facilities underground in the manner required by the City, as described in Kent City Code Chapter 7.10. Franchisee acknowledges and agrees that if the City does not require the undergrounding of its Facilities at the time of a permit application, the City may, at any time in the future, require the {ERz1164422.DocX;4i00085.080003i> 8 Franchise - tw telecom 17 conversion of Franchisee's aerial facilities to underground installation at Franchisee's expense. Unless otherwise permitted by the City, Franchisee shall underground its Facilities in all new developments and subdivisions and any development or subdivision where utilities are currently underground. 6.2 Whenever the City may require the undergrounding of the aerial utilities in any area of the City, Franchisee shall underground its aerial facilities in the manner specified by the City, concurrently with and in the area of the other affected utilities. The location of any relocated and underground utilities shall be approved by the City. Where other utilities are present and involved in the undergrounding project, Franchisee shall only be required to pay its fair share of common costs borne by all utilities, in addition to the costs specifically attributable to the undergrounding of Franchisee's own Facilities. "Common costs" shall include necessary costs not specifically attributable to the undergrounding of any particular facility, such as costs for common trenching and utility vaults. "Fair share" shall be determined for a project on the basis of the number of conduits of Franchisee's Facilities being undergrounded in comparison to the total number of conduits of all other utility facilities being undergrounded. This Section 6.2 shall only apply to the extent Franchisee has existing aerial utilities in the City or is specifically authorized to build aerial utilities by the City. 6.3 Within forty-eight (48) hours (excluding weekends and City- recognized holidays) following a request from the City, Franchisee shall locate underground Facilities by marking the location on the ground. The location of the underground Facilities shall be identified using orange spray paint, unless otherwise specified by the City, and within two feet of the actual location. {ERZll64422.DocX;4i00085.080003i> 9 Franchise — tw telecom 18 6.4 Franchisee shall be entitled to reasonable access to open utility trenches, provided that such access does not interfere with the City's placement of utilities or increase the City's costs. Franchisee shall pay to the City the actual cost to the City resulting from providing Franchisee access to an open trench, including without limitation the pro rata share of the costs of access to an open trench and any costs associated with the delay of the completion of a public works project. 6.5 Franchisee shall not remove any underground cable or conduit that requires trenching or other opening of the Rights-of-Way along the extension of cable to be removed, except as provided in this Section 6.5. Franchisee may remove any underground cable from the Right-of-Way that has been installed in such a manner that it can be removed without trenching or other opening of the Right-of-Way along the extension of cable to be removed, or if otherwise permitted by the City. Franchisee may remove any underground cable from the Rights-of-Way where reasonably necessary to replace, upgrade, or enhance its Facilities, or pursuant to Section 5. When the City determines, in the City's sole discretion, that Franchisee's underground Facilities must be removed in order to eliminate or prevent a hazardous condition, Franchisee shall remove the cable or conduit at Franchisee's sole cost and expense. Underground cable and conduit in the Right-of-Way that is not removed shall be deemed abandoned and title thereto shall vest in the City at no cost to the City. Franchisee must apply and receive a permit, pursuant to Section 8.2, prior to any such removal of underground cable or conduit from the Right-of-Way and must provide as-built plans and maps pursuant to Section 7.1. 6.6 The provisions of this Section 6 shall survive the expiration, revocation, or termination of this Franchise during such time as Franchisee continues to have Facilities in the Rights-of-Way. Nothing in this Section 6 {ERz1164422.DocX;4i00085.080003i} 10 Franchise — tw telecom 19 shall be construed as requiring the City to pay any costs of undergrounding any of Franchisee's Facilities. SECTION 7, - Maps and Records. 7.1 After construction is complete, Franchisee shall provide the City with accurate copies of as-built plans and maps stamped and signed by a professional land engineer having a form and content reasonably prescribed by the Public Works Director or his/her designee. These plans and maps shall be provided at no cost to the City, and shall include hard copies and digital files in Autocad or other industry standard readable formats that are acceptable to the City and delivered electronically. Franchisee shall provide such maps within ten (10) days following a request from the City. Franchisee shall warrant the accuracy of all plans, maps and as-builts provided to the City. 7.2 Within thirty (30) days of a written request from the City, Franchisee shall furnish the City with information sufficient to demonstrate: 1) that Franchisee has complied with all applicable requirements of this Franchise; and 2) that all taxes, including but not limited to sales, utility and/or telecommunications taxes due the City in connection with Franchisee's Services and Facilities have been properly collected and paid by Franchisee. 7.3 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; provided, however, 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 {ERz1164422.DocX;4i00085.080003i> 11 Franchise - tw telecom 20 otherwise prohibited 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 Franchisee shall not be required to disclose information that it reasonably deems to be proprietary or confidential in nature. The City agrees to keep confidential any proprietary or confidential books or records to the extent permitted by law. 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. In the event that the City receives a public records request under Chapter 42.56 RCW or similar law for the disclosure of information Franchisee has designated as confidential, trade secret, or proprietary, the City shall promptly provide written notice of such disclosure so that Franchisee 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 shall comply with any injunction or court order obtained by Franchisee that prohibits the disclosure of any such confidential records; however, in the event a higher court overturns such injunction or court order and such higher court action is or has become final and non-appealable, Franchisee shall reimburse the City for any fines or penalties imposed for failure to disclose such records as required hereunder within forty-five (45) days of {ERz1164422.DocX;4i00085.080003i> 12 Franchise — tw telecom zi a request from the City, unless additional time is reasonably necessary under the circumstances and is agreed to by the parties. SECTION S. - 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, so as to minimize interference with the free passage of traffic and the free use of adjoining property, whether public or private. Franchisee shall at all times post and maintain proper barricades, flags, flaggers, lights, flares, and other measures as required for the safety of all members of the general public and comply with all applicable safety regulations during such period of construction as required by the ordinances of the City or the laws of the State of Washington, including RCW 39.04.180 for the construction of trench safety systems. 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 shall survive the expiration of this Franchise during such time as Franchisee continues to have Facilities in the Rights-of-Way. 8.2 Whenever Franchisee shall commence work in any public Rights-of- Way for the purpose of excavation, installation, construction, repair, maintenance, or relocation of its cable or equipment, it shall apply to the City for a permit to do so and, in addition, shall give the City at least ten (10) working days prior notice of its intent to commence work in the Rights-of-Way. During the progress of the work, Franchisee shall not unnecessarily obstruct the passage or proper use of the Rights-of-Way, and all work by Franchisee in the area shall be performed in accordance {ERz1164422.DocX;4i00085.080003i> 13 Franchise — tw telecom zz 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. 8.3 If either the City or Franchisee shall at any time plan to make excavations in any area covered by this Franchise and as described in this Section 8.3, the party planning such excavation shall afford the other, upon receipt of a written request to do so, an opportunity to share such excavation, PROVIDED THAT: a. Such joint use shall not unreasonably delay the work of the party causing the excavation to be made; b. Such joint use shall be arranged and accomplished on terms and conditions satisfactory to both parties; and C. Either party may deny such request for safety reasons. 8.4 Except for emergency situations, Franchisee shall give at least seven (7) days' prior notice of intended construction to residents in the affected area. Such notice shall contain the dates, contact number, nature and location of the work to be performed; a door hanger is permissible. At least twenty-four (24) hours prior to entering private property or streets or public easements adjacent to or on such private property, Franchisee shall physically post a notice on the property indicating the nature and location of the work to be performed; a door hanger is permissible. Franchisee shall make a good faith effort to comply with the property owner/resident's preferences, if any, on location or placement of underground installations (excluding aerial cable lines utilizing existing poles and existing cable paths), consistent with sound engineering practices. Following performance of the work, Franchisee shall restore the private property as nearly as possible to its condition prior to construction, {ERz1164422.DOCX;4i00085.080003i> 14 Franchise — tw telecom 23 except for any change in condition not caused by Franchisee. Any disturbance of landscaping, fencing, or other improvements on private property caused by Franchisee's work shall, at the sole expense of Franchisee, be promptly repaired and restored to the reasonable satisfaction of the property owner/resident. Notwithstanding the above, nothing herein shall give Franchisee the right to enter onto private property without the permission of such private property owner, or as otherwise authorized by applicable law. 8.5 Franchisee shall at all times comply with the safety requirements contained in Section 10 and all applicable federal, State and local safety requirements. 8.6 Franchisee may trim trees upon and overhanging on public ways, streets, alleys, sidewalks, and other public places of the City so as to prevent the branches of such trees from coming in contact with Franchisee's Facilities. The right to trim trees in this Section 8.6 shall only apply to the extent necessary to protect above ground Facilities. 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. Franchisee shall prepare and maintain a tree trimming schedule to ensure compliance with this Section 8.6 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 schedule to the Public Works Director or his/her designee. All trimming, except in emergency situations, is to be done after the explicit prior written notification and approval of the City and at the expense of Franchisee. Franchisee may contract for such services, however, any firm or individual so retained must first receive City approval prior to commencing such trimming. Nothing herein grants Franchisee any {ERZll64422.DocX;4i00085.080003i> 15 Franchise — tw telecom 24 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. 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. Franchisee shall reasonably compensate the City or the property owner for any damage caused by trimming, damage, or removal by Franchisee. Except in an emergency situation, all tree trimming must be performed under the direction of an arborist certified by the International Society of Arboriculture, unless otherwise approved by the Public Works Director or his/her designee. 8.7 Franchisee shall meet with the City and other franchise holders and users of the Rights-of-Way upon written notice as determined by the City, to schedule and coordinate construction in the Rights-of-Way. All construction locations, activities, and schedules shall be coordinated as ordered by the City to minimize public inconvenience, disruption, or damages. 8.8 Franchisee acknowledges that it, and not the City, shall be responsible for compliance with all marking and lighting requirements of the FAA and the FCC with respect to Franchisee's Facilities. Franchisee shall indemnify and hold the City harmless from any fines or other liabilities caused by Franchisee's failure to comply with such requirements. Should Franchisee or the City be cited by either the FCC or the FAA because the Facilities or 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, upon at least forty- eight (48) hours' prior written notice to Franchisee, either terminate this {ERz1164422.DocX;4i00085.080003i> 16 Franchise — tw telecom 25 Franchise immediately if the equipment is not brought into compliance by the expiration of such notice period or may proceed to 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, but 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, - One Call Locator Service. Prior to doing any work in the Rights-of-Way, the Franchisee shall follow established procedures, including contacting the Utility Notification Center in Washington and comply with all applicable State statutes regarding the One Call Locator Service pursuant to Chapter 19.122 RCW. 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 10. - Safety Requirements. 10.1 Franchisee shall, at all times, employ professional care and shall install and maintain and use industry-standard methods for preventing failures and accidents that are likely to cause damage, injuries, or nuisances to the public. All structures and all lines, equipment, and connections in, over, under, and upon the Rights-of-Ways, wherever situated or located, shall at all times be kept and maintained in a safe condition. Franchisee shall comply with all federal, State, and City safety requirements, rules, regulations, laws, and practices, and employ all necessary devices as required by applicable law during the construction, operation, maintenance, upgrade, repair, or removal of its Facilities. By way of illustration and not limitation, Franchisee shall also comply with the {ERz1164422.DoCX;4i00085.080003i> 17 Franchise - tw telecom 26 applicable provisions of the National Electric Code, National Electrical Safety Code, FCC regulations, and Occupational Safety and Health Administration (OSHA) Standards. Upon reasonable notice to Franchisee, the City reserves the general right to inspect the Facilities to evaluate if they are constructed and maintained in a safe condition. 10.2 If an unsafe condition or a violation of Section 10.1 is found to exist, and becomes known to the City, the City agrees to give Franchisee written notice of such condition and afford Franchisee a reasonable opportunity to repair the same. If Franchisee fails to start to make the necessary repairs and alterations within the time frame specified in such notice (and pursue such cure to completion), then the City may make such repairs or contract for them to be made. All costs, including administrative costs, incurred by the City in repairing any unsafe conditions shall be borne by Franchisee and reimbursed to the City pursuant to Section 15.3 and Section 15.4. 10.3 Additional safety standards include: a. Franchisee shall endeavor to maintain all equipment lines and facilities in an orderly manner, including, but not limited to, the removal of all bundles of unused cable. b. All installations of equipment, lines, and ancillary facilities shall be installed in accordance with industry-standard engineering practices and shall comply with all federal, State, and local regulations, ordinances, and laws. C. Any opening or obstruction in the Rights-of-Way or other public places made by Franchisee in the course of its operations shall be protected by Franchisee at all times by the placement of adequate {ERz1164422.DocX;4i00085.080003i> 18 Franchise — tw telecom 27 barriers, fences, or boarding, the bounds of which, during periods of dusk and darkness, shall be clearly marked and visible at night. SECTION 11. - 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 is 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 12. - City Conduit. Except in emergency situations, Franchisee shall inform the Public Works Director with at least thirty (30) days' advance written notice that it is constructing, relocating, or placing ducts or conduits in the Rights-of-Way and provide the City with an opportunity to request that Franchisee provide the City with additional duct or conduit, and related structures necessary to access the conduit pursuant to and subject to RCW 35.99.070. Such notification shall be in addition to the requirement to apply for and obtain permits pursuant to Section 8.2. SECTION 13. - Restoration after Construction. 13.1 Franchisee shall, after installation, construction, relocation, maintenance, or repair of its Facilities, or after abandonment approved pursuant to Section 19, promptly remove any obstructions from the Rights-of-Way and restore the surface of the Rights-of-Way to at least the same condition the Rights-of-Way were in immediately prior to any such installation, construction, relocation, maintenance or repair, provided {ERz1164422.DoCX;4i00085.080003i> 19 Franchise - tw telecom 2s Franchisee shall not be responsible for any changes to the Rights-of-Way not caused by Franchisee or anyone doing work for Franchisee. The Public Works Director or his/her designee shall have final approval of the condition of such Rights-of-Way after restoration. All concrete encased monuments that have been disturbed or displaced by such work shall be restored pursuant to federal, state (Chapter 332-120 WAC), and local standards and specifications. 13.2 Franchisee agrees to promptly complete all restoration work and to promptly repair any damage caused by work to the Franchise Area or other affected area at its sole costs 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 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 In the event Franchisee does not repair a Right-of-Way or an improvement in or to a Right-of-Way within the time agreed to by the Public Works Director, or his/her designee, the City may repair the damage and shall be reimbursed its actual cost within sixty (60) days of submitting an itemized 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 Section 15.4, the City may bill Franchisee for expenses associated with the inspection of such restoration work. {ERz1164422.DocX;4i00085.080003i> 20 Franchise — tw telecom 29 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. - Emergencies. 14.1 In the event of any emergency in which any of Franchisee's Facilities located in or under any street endangers the property, life, health, or safety of any person, entity or the City, or if Franchisee's construction area 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 and 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 not later than the next succeeding day during which the Kent City Hall is open for business. The City retains the right and privilege to cut or move any Facilities located within the Rights-of-Way of the City, as the City may determine to be necessary, appropriate, or useful in response to any public health or safety emergency. The City shall notify Franchisee by telephone promptly upon learning of the emergency and shall exercise reasonable efforts to avoid an interruption of Franchisee's operations. 14.2 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, an adjoining public place, street utilities, City property, Rights-of-Way, or private property (collectively "Endangered Property") or {ERz1164422.DocX;4i00085.080003i> 21 Franchise - tw telecom 30 endangers the public, the Public Works Director or his/her designee, may direct Franchisee, at Franchisee's own expense, to take reasonable action to protect the Endangered Property or the public, and such action may include compliance within a prescribed time. In the event that Franchisee fails or refuses to promptly take the actions directed by the City, or fails to fully comply with such directions, or if an emergency situation exists that requires immediate action before the City can timely contact Franchisee to request Franchisee effect the immediate repair, the City may enter upon the Endangered Property and take such reasonable actions as are necessary to protect the Endangered Property or the public. Franchisee shall be liable to the City for the costs of any such repairs in accordance with the provisions of Sections 15.3 and 15.4. 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, unless 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 unless caused by the gross negligence or willful acts of the City, its employees, contractors, or agents. SECTION 15. - Recovery of Costs. 15.1 Franchisee shall pay a grant fee in the maximum amount of Dollars ($ ) for the City's administrative, legal, and other costs incurred in drafting and processing this Franchise and all work related thereto. No construction permits shall be issued for the installation of Facilities authorized until such time as the City has received payment of the grant fee. Franchisee shall further be subject to all permit {ERz1164422.DoCX;4i00085.080003i> 22 Franchise - tw telecom 31 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. 15.2 In addition to Section 15.1, 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 said 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. 15.3 Franchisee shall reimburse the City within sixty (60) days of submittal by the City of an itemized billing for reasonably incurred costs, itemized by project, for Franchisee's proportionate share of all actual, identified expenses incurred by the City in planning, constructing, installing, repairing, altering, or maintaining any City facility as the result of the presence of Franchisee's Facilities in the 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 {ERz1164422.DocX;4i00085.080003i> 23 Franchise — tw telecom 32 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 said 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. SECTION 16. - City's Reservation of Rights. 16.1 Franchisee represents that its Services, as authorized under this Franchise, are a telephone business as defined in RCW 82.16.010, or that it is a service provider as used in RCW 35.21.860 and defined in RCW 35.99.010. As a result, the City will not impose franchise fees under the terms of this Franchise. The City reserves its right to impose a franchise fee on Franchisee if Franchisee's Services as authorized by this Franchise change such that the statutory prohibitions of RCW 35.21.860 no longer apply or if statutory prohibitions on the imposition of such fees are otherwise removed. The City also reserves its right to require that Franchisee obtain a separate franchise for a change in use, which franchise may include provisions intended to regulate Franchisee's operations as allowed under applicable law. Nothing contained within this Franchise shall preclude Franchisee from challenging any such new fee or separate agreement under applicable federal, State, or local laws. {ERz1164422.DoCX;4i00085.080003i> 24 Franchise - tw telecom 33 16.2 Franchisee acknowledges that its operation with the City constitutes a telephone business subject to the utility tax imposed pursuant to the Kent City Code Chapter 3.18. Franchisee understands that RCW 35.21.870 currently limits the rate of city tax upon telephone business activities to six percent (6%) of gross income (as that term is defined in Kent City Code Chapter 3.18), unless a higher rate is otherwise approved. Franchisee stipulates and agrees that certain of its business activities are subject to taxation as a telephone business and that Franchisee shall pay to the City the rate applicable to such taxable services under Kent City Code Chapter 3.18, 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 Kent City Code Chapter 3.18 as may be permitted by law. SECTION 17. Indemnification. 17.1 Franchisee releases, covenants not to bring suit, and agrees to indemnify, defend, and hold harmless the City, its officers, employees, agents, and representatives from any and all claims, costs, judgments, awards, or liability to any person, for injury or death of any person, or damage to property caused by or arising out of the any acts or omissions of Franchisee, its agents, servants, officers, or employees in the performance of this Franchise and any rights granted within this Franchise. 17.2 Inspection or acceptance by the City of any work performed by Franchisee at the time of completion of construction shall not be grounds for avoidance by Franchisee of any of its obligations under this Section 17. 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. {ERz1164422.DocX;4i00085.080003i> 25 Franchise — tw telecom 34 17.3 The City shall promptly notify Franchisee of any claim or suit and request in writing that Franchisee indemnify the City. Franchisee may choose counsel to defend the City subject to this Section 17.3. City's failure to so notify and request indemnification shall not relieve Franchisee of any liability that Franchisee might have, except to the extent that such failure prejudices Franchisee's ability to defend such claim or suit. In the event that Franchisee refuses the tender of defense in any suit or any claim, as required pursuant to the indemnification provisions within this Franchise, and said refusal is subsequently determined by a court having jurisdiction (or such other tribunal that the parties shall agree to decide the matter), to have been a wrongful refusal on the part of Franchisee, Franchisee shall pay all of the City's reasonable costs for defense of the action, including all expert witness fees, costs, and attorney's fees, and including costs and fees incurred in recovering under this indemnification provision. If separate representation to fully protect the interests of both parties is necessary, such as a conflict of interest between the City and the counsel selected by Franchisee to represent the City, then upon the prior written approval and consent of Franchisee, which shall not be unreasonably withheld, the City shall have the right to employ separate counsel in any action or proceeding and to participate in the investigation and defense thereof, and Franchisee shall pay the reasonable fees and expenses of such separate counsel, except that Franchisee shall not be required to pay the fees and expenses of separate counsel on behalf of the City for the City to bring or pursue any counterclaims or interpleader action, equitable relief, restraining order or injunction. The City's fees and expenses shall include all out-of-pocket expenses, such as consultants and expert witness fees, and shall also include the reasonable value of any services rendered by the counsel retained by the City but shall not include outside attorneys' fees for services that are unnecessarily duplicative of services provided the City by Franchisee. Each party agrees to cooperate {ERZll64422.DocX;4i00085.080003i> 26 Franchise — tw telecom 35 and to cause its employees and agents to cooperate with the other party in the defense of any such claim and the relevant records of each party shall be available to the other party with respect to any such defense. 17.4 The parties acknowledge that this Franchise is subject to RCW 4.24.115. Accordingly, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of Franchisee and the City, its officers, officials, employees, and volunteers, Franchisee's liability shall be only to the extent of Franchisee's negligence. It is further specifically and expressly understood that the indemnification provided constitutes Franchisee's waiver of immunity under Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. 17.5 Notwithstanding any other provisions of this Section 17, Franchisee assumes the risk of damage to its Facilities located in the Rights-of-Way and upon City-owned property from activities conducted by the City, its officers, agents, employees, volunteers, elected and appointed officials, and contractors, except to the extent any such damage or destruction is caused by or arises from any grossly negligent, willful, or criminal actions on the part 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 and lost profits, 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 {ERz1164422.DocX;4i00085.080003i> 27 Franchise — tw telecom 36 contractors, except to the extent any such damage or destruction is caused by or arises from the sole negligence or any willful, or criminal actions on the part of the City, its officers, agents, employees, volunteers, or elected or appointed officials, or contractors. 17.6 The provisions of this Section 17 shall survive the expiration, revocation, or termination of this Franchise. SECTION 18. - Insurance. 18.1 Franchisee shall procure and maintain for so long as Franchisee has Facilities in the Rights-of-Way, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the exercise of rights, privileges and authority granted to Franchisee, its agents representatives or employees. Franchisee shall require that every subcontractor maintain insurance coverage and policy limits consistent with this Section 18 with the exception of umbrella liability, where contractors of Franchisee shall maintain $5,000,000 per occurrence and aggregate policy limits. Franchisee shall procure insurance from insurers with a current A.M. Best rating of not less than A-. Franchisee shall provide a copy of a certificate of insurance and additional insured endorsement to the City for its inspection at the time of or prior to acceptance of this Franchise, and such insurance certificate shall evidence a policy of insurance that includes: a. Automobile Liability insurance with limits no less than $2,000,000 combined single limit per occurrence for bodily injury and property damage. Franchisee currently maintains a $100,000 per occurrence deductible; b. Commercial General Liability insurance, written on an occurrence basis with limits no less than $3,000,000 combined single limit per occurrence and $5,000,000 aggregate for personal injury, bodily injury {ERz1164422.DocX;4i00085.080003i> 28 Franchise - tw telecom 37 and property damage. Coverage shall include but not be limited to: blanket contractual; premises; operations; independent contractors; stop gap liability; personal injury; products and completed operations; broad form property damage; explosion, collapse and underground (XCU); and employer's liability. Franchisee currently maintains a $25,000 per occurrence deductible; C. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. No deductible is presently required for this insurance; and d. Umbrella liability policy with limits not less than $10,000,000 per occurrence and in the aggregate. Franchisee currently maintains a $10,000 per occurrence deductible. 18.2 Any deductibles or self-insured retentions must be declared to and approved by the City. Such approval shall not be unreasonably withheld or delayed. The City acknowledges that Franchisee's current deductibles are subject to change based on business needs and the commercial insurance market. Payment of deductible or self-insured retention shall be the sole responsibility of Franchisee. Additionally, Franchisee shall pay all premiums for the insurance on a timely basis. Franchisee may utilize primary and umbrella liability insurance policies to satisfy the insurance policy limits required in this section. Franchisee's umbrella liability insurance policy provides "follow form" coverage over its primary liability insurance policies. 18.3 The insurance policies, with the exception of Workers' Compensation obtained by Franchisee shall name the City, its officers, officials, employees, agents, and volunteers ("Additional Insureds"), as an additional insured with regard to activities performed by or on behalf of Franchisee. The coverage shall contain no special limitations on the scope {ERZll64422.DocX;4i00085.080003i> 29 Franchise — tw telecom 38 of protection afforded to the Additional Insureds. In addition, the insurance policy shall contain a clause stating that coverage shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability. Franchisee shall provide to the City prior to or upon acceptance either (1) a true copy of the additional insured endorsement for each insurance policy required in this Section 18 and providing that such insurance shall apply as primary insurance on behalf of the Additional Insureds or (2) a true copy of the blanket additional insured clause from the policies. Receipt by the City of any certificate showing less coverage than required is not a waiver of Franchisee's obligations to fulfill the requirements. Franchisee's insurance shall be primary insurance as respects the Additional Insureds, and the endorsement should specifically state that the insurance is the primary insurance. Any insurance maintained by the Additional Insureds shall be in excess of Franchisee's insurance and shall not contribute with it. 18.4 Franchisee is obligated to notify the City of any cancellation or intent not to renew any insurance policy, required pursuant to this Section 18, ninety (90) days prior to any such cancellation. Within thirty (30) days prior to said cancellation or intent not to renew, Franchisee shall obtain and furnish to the City replacement insurance policies meeting the requirements of this Section 18. Failure to provide the insurance cancellation notice and to furnish to the City replacement insurance policies meeting the requirements of this Section 18 shall be considered a material breach of this Franchise and subject to the City's election of remedies described in Section 21 below. Notwithstanding the cure period described in Section 21.2, the City may pursue its remedies immediately upon a failure to furnish replacement insurance. {ERz1164422.DocX;4i00085.080003i> 30 Franchise — tw telecom 39 18.5 Franchisee's maintenance of insurance as required by this Section 18 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 19. - Abandonment of Franchisee's Telecommunications Network. Upon the expiration, termination, or revocation of the rights granted under this Franchise, Franchisee shall remove all of its Facilities from the Rights-of-Way within thirty (30) days of receiving written notice from the Public Works Director or his/her designee. The Facilities, in whole or in part, may not be abandoned by Franchisee without written approval by the City. Any plan for abandonment or removal of Franchisee's Facilities must be first approved by the Public Works Director or his/her designee, and all necessary permits must be obtained prior to such work. Notwithstanding the above, however, the City may permit Franchisee's improvements to be abandoned and placed 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. Any Facilities that are not permitted to be abandoned in place and that are not removed within thirty (30) days of receipt of City's notice shall automatically become the property of the City. Provided, however, that nothing contained within this Section 19 shall prevent the City from compelling Franchisee to remove any such Facilities through judicial action when the City has not permitted the Franchisee to abandon said Facilities in place. The provisions of this Section 19 shall survive the expiration, revocation, or termination of this Franchise. SECTION 20. - Bonds. {ERz1164422.DocX;4i00085.080003i> 31 Franchise - tw telecom 40 20.1 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 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 guarantee as described in Section 20.2. Compliance with the performance guarantee requirement of the City's current Design and Construction Standards shall satisfy the provisions of this Section 20.1. 20.2 Maintenance Guarantee. 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 {ERz1164422.DocX;4i00085.080003i> 32 Franchise — tw telecom 41 performance construction guarantee as described in Section 20.1, whichever is greater. At 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 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 20.2. 20.3 Original financial guarantee amounts described in Section 20.1 and Section 20.2 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 based on an updated engineer's cost estimate or as determined by the City. Financial guarantees will be fully released only after all final punchlist 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. 20.4 Franchisee shall provide City with a bond in the amount of Fifty Thousand Dollars ($50,000.00) ("Franchise Bond") running or renewable for the term of this Franchise, in a form and substance reasonably acceptable to City. In the event Franchisee shall fail to substantially comply with any one or more of the provisions of this Franchise, following 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 City as a result thereof, including but not limited to staff time, material and equipment costs, compensation or indemnification {ERZll64422.DocX;4i00085.080003i> 33 Franchise — tw telecom 42 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 20.4 shall constitute a material breach of this Franchise, subject to the notice and cure provisions of Section 21.2. Franchisee further agrees to replenish the Franchise Bond within fourteen (14) 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. 20.5 All bonds provided to the City under this Section 20 shall be on forms provided by the City and with sureties registered with the Washington State Insurance Commissioner or other financial institutions acceptable to the City. SECTION 21. - Remedies to Enforce Compliance. 21.1 In addition to any other remedy provided in this Franchise, the City reserves the right to pursue any remedy available at law or in equity to compel or require Franchisee and/or its successors and assigns to comply with the terms of this Franchise and the pursuit of any right or remedy by the City shall not prevent the City from thereafter declaring a revocation for breach of the conditions. In addition to any other remedy provided in this Franchise, Franchisee reserves the right to pursue any remedy available at law or in equity to compel or require the City, its officers, employees, volunteers, contractors and other agents and representatives, to comply with the terms of this Franchise. Further, all rights and remedies provided herein shall be in addition to and cumulative with any and all other rights and remedies available to either the City or Franchisee. Such rights and remedies shall not be exclusive, and the exercise of one or more rights or remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or {ERZll64422.DoCX;4i00085.080003i> 34 Franchise — tw telecom 43 remedy. Provided, further, that by entering into this Franchise, it is not the intention of the City or Franchisee to waive any other rights, remedies, or obligations as provided by law, equity or otherwise, and nothing contained in this Franchise shall be deemed or construed to effect any such waiver. The parties acknowledge that, in the event of a violation of this Franchise, the other party shall be entitled to preliminary and permanent injunctive relief without having to prove actual damages or immediate or irreparable harm or to post a bond. 21.2 If either party violates or fails to comply with any of the provisions of this Franchise or a permit issued as required by Section 8.2, or should it fail to heed or comply with any notice given to such party under the provisions of this Franchise (the "Defaulting Party"), the other Party (the "Non-defaulting Party") shall provide the Defaulting Party with written notice specifying with reasonable particularity the nature of any such breach and the Defaulting Party shall undertake all commercially reasonable efforts to cure such breach within thirty (30) days of receipt of notification. If the Non-defaulting Party reasonably determines the breach cannot be cured within (30) thirty days, the Non-defaulting Party may specify a longer cure period, and condition the extension of time on the Defaulting Party's submittal of a plan to cure the breach within the specified period, commencement of work within the original thirty (30) day cure period, and diligent prosecution of the work to completion. If the breach is not cured within the specified time, or the Defaulting Party does not comply with the specified conditions, the Non-defaulting Party may pursue any available remedy at law or in equity as provided in Section 20.1 above, or in the event Franchisee has failed to timely cure the breach, the City, at its sole discretion, may elect to (1) revoke this Franchise pursuant to Section 22, (2) claim damages of Two Hundred Fifty Dollars ($250.00) per day against Franchisee (and collect from the {ERZll64422.DocX;4i00085.080003i) 35 Franchise — tw telecom 44 Franchise Bond if necessary), or (3) extend the time to cure the breach if under the circumstances additional time is reasonably required. SECTION 22. - Revocation. If Franchisee willfully violates or fails to comply with any material provisions of this Franchise, then at the election of the Kent City Council after at least thirty (30) days written notice to Franchisee specifying the alleged violation or failure, the City may revoke all rights conferred and this Franchise may be revoked by the 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) days after the hearing, the Kent 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 Kent 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 Kent City Council does not grant any additional period, the Kent City Council may by resolution declare the Franchise to be revoked and forfeited or impose lesser sanctions. If Franchisee appeals revocation and termination, such revocation may be held in abeyance pending judicial review by a court of competent jurisdiction, provided Franchisee is otherwise in compliance with the Franchise. SECTION 23. - Non-Waiver. The failure of either party to insist upon strict performance of any of the covenants and agreements of this Franchise or to exercise any option 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. {ERZll64422.DocX;4i00085.080003i> 36 Franchise - tw telecom 45 SECTION 24. - Police Powers and City Reaulations. Nothing within this Franchise 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, consistent with 47 U.S.C. § 253, the location, elevation, manner of construction, and maintenance of any Facilities by Franchisee, and Franchisee shall promptly conform with all such regulations, unless compliance would cause Franchisee to violate other requirements of law. The City reserves the right to promulgate any additional regulations of general applicability as it may find necessary in the exercise of its lawful police powers consistent with 47 U.S.C. § 253. In the event of a conflict between the provisions of this Franchise and any other ordinance(s) enacted under the City's police power authority, such other ordinances(s) shall take precedence over this Franchise. SECTION 25. - Cost of Publication. The cost of publication of this Franchise shall be borne by Franchisee. SECTION 26. - Acceptance. This Franchise may be accepted by Franchisee by its filing with the City Clerk of an unconditional written acceptance, within sixty (60) days from the City's execution of this Franchise, in the form attached as Exhibit B. Failure of Franchisee to so accept this Franchise shall be deemed a rejection by Franchisee and the rights and privileges granted shall cease. In addition, Franchisee shall file the certificate of insurance and the additional insured endorsements obtained pursuant to Section 18, any construction guarantees, if applicable, pursuant to Section 20.1, the Franchise Bond required pursuant to Section 20.4, and the costs described in Section 15.1. {ERZll64422.DoCX;4i00085.080003i> 37 Franchise — tw telecom 46 SECTION 27. - Survival. All of the provisions, conditions, and requirements of Section 5, Section 6, Section 8, Section 13, Section 17, Section 18, Section 19, Section 20, and Section 28 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 this Franchise, and any renewals or extensions, to the extent provided for in those sections. All of the provisions, conditions, regulations, and requirements contained in this Franchise shall further be binding upon the 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 successors and assigns equally as if they were specifically mentioned where Franchisee is named. SECTION 28. - Changes of Ownership or Control. 28.1 This Franchise may not be directly or indirectly assigned, transferred, or disposed of by sale, lease, merger, consolidation or other act of Franchisee, by operation of law or otherwise, unless 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, unless there is a change of control as described in Section 28.2 below. Franchisee shall 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 28, no assignment or transfer of this Franchise shall be deemed to occur based on the public trading of Franchisee's stock; provided, {ERZ1164422.DoCX;4i0008s.080003i> 38 Franchise — tw telecom 47 however, any tender offer, merger, or similar transaction resulting in a change of control shall be subject the provisions of this Franchise. 28.2 Any transactions that singularly or collectively result in a change of more than fifty percent (50%) of the: ultimate ownership or working control of Franchisee, ownership or working control of the Facilities, ownership or working control of affiliated entities having ownership or working control of Franchisee or of the Facilities, or of control of the capacity or bandwidth of Franchisee's Facilities, shall be considered an assignment or transfer requiring City approval. Transactions between affiliated entities are not exempt from City approval if there is a change in control as described in the preceding sentence. Franchisee shall promptly notify the City prior to any proposed change in, or transfer of, or acquisition by any other party of control of Franchisee. Every change, transfer, or acquisition of control of Franchisee shall cause a review of the proposed transfer. The City shall approve or deny such request for an assignment or transfer requiring City's consent within one-hundred (120) days of a completed application from Franchisee, unless a longer period of time is mutually agreed to by the parties or when a delay in the action taken by the City is due to the schedule of the City Council and action cannot reasonably be obtained within the one hundred twenty (120) day period. In the event that the City adopts a resolution denying its consent and such change, transfer, or acquisition of control has been effected, the City may revoke this Franchise, following the revocation procedure described in Section 22 above. The assignee or transferee must have the legal, technical, financial, and other requisite qualifications to own, hold, and operate Franchisee's Services. Franchisee shall reimburse the City for all direct and indirect costs and expenses reasonably incurred by the City in considering a request to transfer or assign this Franchise, in accordance with the provisions of Section 15.3 and Section 15.4, and shall pay the applicable application fee. {ERZll64422.DocX;4i00085.080003i> 39 Franchise — tw telecom 48 28.3 Franchisee may, without prior consent from the City: (i) lease the Facilities, or any portion, to another person; (ii) grant an indefeasible right of user interest in the Facilities, or any portion, to another person; or (iii) offer to provide capacity or bandwidth in its Facilities to another person, provided further, that Franchisee shall at all times retain exclusive control over its Facilities and remain fully responsible for compliance with the terms of this Franchise, and Franchisee shall furnish, upon request from the City, a copy of any such lease or agreement, provided that Franchisee may redact the name, street address (except for City and zip code), Social Security Numbers, Employer Identification Numbers or similar identifying information, and other information considered confidential under applicable laws provided in such lease or agreement, and the lessee complies, to the extent applicable, with the requirements of this Franchise and applicable City codes. Franchisee's obligation to remain fully responsible for compliance with the terms under this Section 28.3 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 29. - Entire Agreement. This Franchise constitutes the entire understanding and agreement between the parties as to the subject matter within this Agreement and no other agreements or understandings, written or otherwise, shall be binding upon the parties upon execution of this Franchise. SECTION 30. - 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 Franchisee's Facilities for the fair market value. In determining the value of such Facilities, no value shall be attributed to the right to occupy the area conferred by this Franchise. {ERZ1164422.DocX;4i0008s.080003i} 40 Franchise — tw telecom 49 SECTION 31. - Vacation. If at any time the City, by ordinance and in accordance with applicable laws, 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 Franchisee in writing not less than sixty (60) days before vacating all or any portion of any such area. The City may, after sixty (60) days' written notice to Franchisee, terminate this Franchise with respect to such vacated area. SECTION 32. - Notice. Any notice or information required or permitted to be given to the parties under this Franchise shall be sent to the following addresses unless otherwise specified by personal delivery, overnight mail by a nationally recognized courier, or by U.S. certified mail, return receipt requested and shall be effective upon receipt or refusal of delivery: CITY OF KENT tw telecom of washington Ilc Attn: City Clerk Attn: Vice President of Regulatory 220 Fourth Avenue South 10475 Park Meadows Drive Kent, WA 98032 Littleton, CO 80124 Telephone: Telephone: 206-676-8052 with a copy to: tw telecom of washington Ilc Attn: SVP and General Counsel 10475 Park Meadows Drive Littleton, CO 80124 Telephone: 303-566-1279 SECTION 33. - 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 {ERz1164422.DocX;4i00085.080003i> 41 Franchise — tw telecom 50 obligations, in which event either party may request renegotiation of those remaining terms of this Franchise materially affected by such court's ruling. SECTION 34. - Compliance with all Applicable Laws. Each party agrees to comply with all present and future federal, state, and local laws, ordinances, rules, and regulations. This Franchise is subject to ordinances of general applicability enacted pursuant to the City's police powers. The City reserves the right at any time to amend this Franchise to conform to any enacted, amended, or adopted federal or state statute or regulation relating to the public health, safety, and welfare, or relating to roadway regulation, or a City ordinance enacted pursuant to such federal or state statute or regulation, when such statute, regulation, or ordinance necessitates this Franchise be amended in order to remain in compliance with applicable laws, but only upon providing Franchisee with thirty (30) days' written notice of its action setting forth the full text of the amendment and identifying the statute, regulation, or ordinance requiring the amendment. Said amendment shall become automatically effective upon expiration of the notice period unless, before expiration of that period, Franchisee makes a written request for negotiations regarding the terms of the amendment. If the parties do not reach agreement as to the terms of the amendment within thirty (30) days of the call for negotiations, either party may pursue any available remedies at law or in equity. SECTION 35. - Attorney Fees. If a suit or other action is instituted in connection with any controversy arising out of this Franchise, each party shall pay all its legal costs and attorney 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 {ERZll64422.DoCX;4i00085.080003i> 42 Franchise - tw telecom 51 this section shall be construed to limit the City's right to indemnification under Section 17 of this Franchise. SECTION 36. - 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 harmless from and against any and all claims, costs, and liabilities including reasonable attorney fees and costs, arising out of or in connection with the cleanup or restoration of the property to the extent caused by Franchisee's use, storage, or disposal of hazardous substances, whether or not intentional, and the use, storage, or disposal of such substances by Franchisee's agents, contractors, or other persons acting under Franchisee's control, whether or not intentional. Franchisee shall have only that responsibility or liability for managing, monitoring, or abating a hazardous condition that it may have under state or federal law and this Franchise shall not be interpreted to expand Franchisee's legal obligations relating to any pre-existing hazardous substances undisturbed by Franchisee. SECTION 37. - Licenses Fees and Taxes. Prior to constructing any Facilities or providing Services within the City, Franchisee shall obtain a business or utility license from the City, if so required. Franchisee shall pay all applicable taxes on personal property and Facilities owned or placed by Franchisee in the Rights-of-Way and shall pay all applicable license fees, permit fees, and any applicable tax unless documentation of exemption is provided to the City and shall pay utility taxes and license fees properly imposed by the City under this Franchise. {ERz1164422.DocX;4i00085.080003i> 43 Franchise — tw telecom 52 SECTION 38. - Miscellaneous. 38.1 The City and Franchisee respectively represent that their respective signatories are duly authorized and have full right, power, and authority to execute this Franchise on such party's behalf. 38.2 This Franchise shall be construed in accordance with the laws of the State of Washington. The United States District Court for the Western District of Washington, and King County Superior Court have proper venue for any dispute related to this Franchise. 38.3 Section captions and headings are intended solely to facilitate the reading of this Franchise. Such captions and headings shall not affect the meaning or interpretation of the text within this Franchise. 38.4 Where the context so requires, the singular shall include the plural and the plural includes the singular. 38.5 Franchisee shall be responsible for obtaining all other required 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. 38.6 This Franchise is subject to all applicable federal, State and local laws, regulations and orders of governmental agencies as amended, including but not limited to the Communications Act of 1934, as amended, the Telecommunications Act of 1996, as amended and the Rules and Regulations of the FCC. Neither the City nor Franchisee waive any rights they may have under any such laws, rules or regulations. 38.7 There are no third party beneficiaries to this Agreement. {ERz1164422.DocX;4i00085.080003i> 44 Franchise — tw telecom 53 38.8 This Franchise may be enforced at both law and in equity. SECTION 39. — 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 40. — Effective Date. This ordinance shall take effect and be in force five (5) days from and after its passage and publication as provided by law. SUZETTE COOKE, MAYOR ATTEST: RONALD F. MOORE, CITY CLERK APPROVED AS TO FORM: ARTHUR FITZPATRICK, ACTING CITY ATTORNEY PASSED: day of 20. APPROVED: day of , 20_. PUBLISHED: day of , 20_. {ERz1164422.DoCX;4i00085.080003i> 45 Franchise — tw telecom 54 I hereby certify that this is a true copy of Ordinance No. passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. (SEAL) RONALD F. MOORE, CITY CLERK {ERz1164422.DOCX;4i00085.080003i> 46 Franchise — tw telecom 55 EXHIBIT A INCLUDE A DESCRIPTION OF FRANCHISEE'S TELECOMMUNICATIONS SYSTEM AND SERVICES {ERz1164422.DOCX;4i00085.080003i> 47 Franchise — tw telecom 56 EXHIBIT B STATEMENT OF ACCEPTANCE tw telecom of washington Ilc ("TWTC) for itself, its successors and assigns, accepts and agrees to be bound by all lawful terms, conditions and provisions of the Franchise attached and incorporated by this reference. TWTC declares that it has carefully read the terms and conditions of this Franchise and unconditionally accepts all of the terms and conditions of the Franchise and agrees to abide by such terms and conditions. TWTC has relied upon its own investigation of all relevant facts and it has not been induced to accept this Franchise and it accepts all reasonable risks related to the interpretation of this Franchise. tw telecom of washington Ilc by: tw telecom holdings inc., its sole member By: Date: Name: Title: ACKNOWLEDGEMENT STATE OF COLORADO ) ss. COUNTY OF DOUGLAS ) I, a Notary Public in and for the State of Colorado, do hereby certify that of tw telecom holdings inc., sole member of tw telecom of washington Ilc, did personally appear before me affixing his/her signature on the attached document. Sworn and Subscribed this day of 2014. Notary Public My commission expires {ERZll64422.DocX;4i00085.080003i} 48 Franchise — tw telecom 57 [SEAL] {ERZll64422.DocX;4i00085.080003i> 49 Franchise — tw telecom 58 This page intentionally left blank. 59 PUBLIC WORKS DEPARTMENT Timothy J. LaPorte P.E., Public Works Director Phone: 253-856-5500 KEN T Fax: 253-856-6500 WASH IN GTO N Address: 220 Fourth Avenue S. Kent, WA 98032-5895 Date: April 18, 2014 To: Chair Dennis Higgins and Public Works Committee Members PW Committee Meeting Date: April 21, 2014 From: Toby Hallock, P.E., Environmental Engineer II Through: Chad Bieren, P.E., City Engineer Subject: Puget Sound Energy - Project Design Agreement Schedule 74 Underground Conversion State Route 516 to S. 2315t Way /Russell Road Upper Levee — James Street and Russell Road Intersection South Reach Levee Item - 3 Motion: Move to recommend Council authorize the Mayor to sign a Project Design Agreement with Puget Sound Energy for the Upper Russell Road Levee in an amount not to exceed $21,000 subject to final terms and conditions acceptable to the City Attorney and Public Works Director. Summary: Portions of the SR 516 to S. 231't Way/Russell Road Upper Levee along the James Street and Russell Road intersection require repairs to meet federal levee safety standards. Existing overhead electrical power and other utilities at this location will need to be relocated underground as part of the project improvements. The schedule 74 underground conversation design agreement with Puget Sound Energy (PSE) allows PSE to prepare designs to relocate their overhead power facilities to underground. Costs to convert the power lines to underground would be part of the levee reconstruction project, which would be completed under an agreement with the King County Flood Control District. PSE has estimated the cost to design the underground conversion to be $21,000. The design costs include engineering, management, and overhead costs. The conversion with PSE is governed by Schedule 74 Tariff G, administered by the Washington Utilities and Transportation Commission. Pursuant to the tariff PSE will pay 60% of the conversion and the city pays 40%. The city also provides the trench and backfill. Budget Impact: There will be no unbudgeted fiscal impacts, as this project will be paid through an agreement with the King County Flood Control District. 60 This page intentionally left blank. vnvmpsexom 61 PU ET SOUND E-N .RGI Puget 5ound Energy, Inc. 6905 South 228th Street Kent, V✓A 98032 April 16,2014 Mr.Toby Hallock City of Kent 400 West Gowe Street Kent, WA 98032 RE: James St&Russell Rd Intersection Schedule 74 Design Agreement Dear Toby: Puget Sound Energy(PSE)has reviewed the City of Kent's(City)request for three Schedule 74 Conversions for the above referenced project. As part of the proposed improvements,the City has requested PSE to convert its existing overhead electric distribution to an underground system consistent with PSE's Rate Schedule 74. I have enclosed two(2) original Design Agreements for signature by the appropriate City representative. Once signed, please return both originals to me for execution by PSE. I will return one of the originals to you for your file. Within ten(10)business days from the date the agreements are fully executed,the City will need to provide PSE with a written scope of work for the Conversion Project,a list of key milestone dates for the Conversion Project and a statement indicating as to whether the City desires to install the ducts and vaults for the Conversion Project. Within 10 business days after receiving the above items from the City,PSE will prepare and submit to the City a reasonably detailed good faith estimate of the cost to perform the Design Work and a proposed schedule for the completion of the Design Work. The City then has another ten(10) business days to either provide PSE with a written notice to proceed with the Design or a written notice to terminate the Agreement without cost to the City. We look forward to working with the City on these projects. Please feel free to contact me at 253- 395-6867 if you have any questions. Sin•erely, Douglas 1. Corbin Municipal Liaison Manager i i Cc: A.YurovchA B. Swart T.Quann Design Agreement Letter 62 16 a € I 0 LL v N E N w 0 V1. V � r p I 1i5; 69 O O � N m a E' C O a � a � h u a N a � OLn V C L LL. a 6 ® O o o eU C d Y 3 W C N c U W ? a c bb 2 bG 6 + N C V C C 3k W W td V c O G G I- ® � C4 u . w c a 5 a 6 p w C (/'1 W U � Pam. P rYi ai d h e! r 6 � � '� aai � •� v o_ O C O v oC .c 3 a E v u Q o 2 W O W u q: ��d E N `� w .6 El c O1 m i a '_., f U w -.2o .P.' 'u+: w V w 63 SCHEDULE 74 UNDERGROUND CONVERSION Project Design Agreement Project Name: James St& Russell Rd Intersection Schedule 74 Conversion THIS Agreement, dated as of this day of , 20 , is made by and between the CITY of KENT, a Municipal Corporation (the "Government Entity"), and PUGET SOUND ENERGY, Inc., a Washington Corporation (the "Company"). RECITALS A. The Company is a public service company engaged in the sale and distribution of electric energy and, pursuant to its franchise or other rights from the Government Entity, currently locates its electric distribution facilities within the jurisdictional boundaries of the Government Entity. i B. The Government Entity is considering conversion of the Company's existing overhead electric distribution system to a comparable underground electric distribution, as more specifically described in the Scope of Work (as defined in paragraph 2, below) furnished to the Company by the Government Entity (the"Conversion Project"). C. The Government Entity has requested that the Company perform certain engineering design services and otherwise work cooperatively with the Government Entity to develop a mutually acceptable Project Plan (as defined in paragraph 6, below) for the Conversion Project, in accordance with and subject to the terms and conditions of this Agreement(the"Design Work"). D. The Government Entity and the Company wish to execute this written contract in accordance with Schedule 74 of the Company's Electric Tariff G ("Schedule 74")to govern the Design Work for the Conversion Project. i ` I AGREEMENT The Government Entity and the Company therefore agree as follows: 1. Unless specifically defined otherwise herein, all terms defined in Schedule 74 shall have the same meanings when used in this Agreement. 2. The Government Entity shall, within ten (10) business days after the date of this Agreement, provide the Company with a written scope of work for the Conversion Project which includes, among other things, (a) a reasonably detailed description of the scope of the work required for the Conversion Project, (b) a list of the key milestone dates for the Conversion Project, (c) reasonably detailed drawings showing any associated planned improvements to the Public Thoroughfare, and (d)a statement as to whether the Government Entity desires to install the ducts and vaults for the Conversion Project(the"Scope of Work"). The Government Entity shall provide the Company two (2) hard copies of the Scope of Work and a copy of the relevant electronic file(s) in a mutually agreed electronic format. 3. Within ten (10) business days of its receipt of the Scope of Work, the Company shall prepare and submit to the Government Entity (a) a reasonably detailed, good faith estimate of the cost to perform the Design Work (the "Design Cost Estimate"), and (b) a proposed schedule for completion of the Design Work which, to the extent reasonably practicable, reflects the applicable key milestone dates specified in the Scope of Work and provides for completion of the Design Work within ninety (90) Design Agreement, Attachment"A" to Schedule 74, Page 1 City of Kent—James St& Russell Rd Conversion 64 business days from the date the Company receives the Government Entity's notice to proceed under paragraph 5, below (the "Design Schedule"). The proposed Design Cost Estimate and the proposed Design Schedule shall be based upon the then-current Scope of Work. Unless otherwise specified in the Scope of Work, the Design Work shall not include negotiation or acquisition of third party property rights but shall include preliminary planning between the Company and the Government Entity regarding their respective obligations for negotiating and acquiring third party property rights. 4. Within ten (10) business days after the Government Entity's receipt of the proposed Design Cost Estimate and the proposed Design Schedule from the Company, the Government Entity and the Company shall meet in order to (a) review the proposed Design Cost Estimate, (b) review the proposed Design Schedule; (c) review the Scope of Work, and (d) make any changes necessary to create a final Scope of Work, final Design Cost Estimate, and final Design Schedule that are reasonably acceptable to both parties. If the parties are unable to agree upon a final version of the Scope of Work, Design Cost Estimate, and/or Design Schedule, then either party may, by written notice to the other party, submit the matter for resolution pursuant to the dispute resolution procedures in paragraph 16, below. The final Scope of Work, Design Cost Estimate and Design Schedule, once determined in accordance with this paragraph 4, may thereafter be changed or amended only in accordance with the change procedures set forth in paragraph 13, below. 5. The Government Entity shall, within ten (10) business days after determination of the final of the Scope of Work, Design Cost Estimate, and Design Schedule, issue (a) a written notice to proceed which shall delineate the final Scope of Work, Design Cost Estimate, and Design Schedule, or (b) a written notice to terminate this Agreement without cost to the Government Entity. If the Government Entity terminates this Agreement, the costs incurred by the Company in preparing and submitting the Design Cost Estimate and the Design Schedule shall not be reimbursable to the Company, and the rights and obligations of the parties under this Agreement shall be terminated in their entirety and without liability to either party. 6. Following the Company's receipt of the notice to proceed, and within the applicable time period specified in the Design Schedule, the Company shall, with the cooperation and assistance of the Government Entity as outlined in this Agreement, prepare a project plan for the Conversion Project (the "Project Plan")which shall include, among other things, the following: (a) a detailed description of the work that is required to be performed by each party and any third party in connection with the Conversion Project(the"Construction Work"), (b) the applicable requirements, drawings, and specifications for the Construction Work, (c) a description of any operating and other property rights that are required to be obtained by each party for the Conversion Project(and the requirements and specifications with respect thereto), (d) a detailed estimate of the costs to be incurred by each party in its performance of the Construction Work, and (e) a detailed schedule for completing the Construction Work (including, without limitation, the dates for delivery of the ducts and vaults and other materials for use at the site of the Construction Work). 7. The Government Entity shall be responsible for coordinating the Design Work with all other design work to be performed in connection with the Conversion Project and any associated planned improvements to the Public Thoroughfare. The parties shall work together in an effort to mitigate the costs of the Conversion Project to each party, including, without limitation, identifying ways to accommodate the facilities of the Company to be installed as part of the Conversion Project within the Public Thoroughfare. 8. Within the applicable time period specified in the Design Schedule, the Company shall prepare and submit to the Government Entity a proposed initial draft of the Project Plan. The parties understand and acknowledge that the proposed Project Plan submitted by the Company shall be preliminary in nature and shall not include, without limitation, information required to be supplied by the Government Entity (e.g., scope and estimate of the cost of the Construction Work to be performed by the Government Entity). Design Agreement, Attachment"A" to Schedule 74, Page 2 City of Kent—James St& Russell Rd Conversion 65 9. Within the applicable time period specified in the Design Schedule, the Government Entity shall (a) review the proposed Project Plan submitted by the Company, (b) complete any information required to be supplied by the Government Entity, (c) make any changes required to conform the proposed Project Plan to the Scope of Work and this Agreement, and (d) return the amended Project Plan to the Company. 10, Within the applicable time period specified in the Design Schedule, the Company shall review the amended Project Plan submitted by the Government Entity and notify the Government Entity in writing of either the Company's acceptance of, or the Company's specific objections to, the amended Project Plan. If the Company makes any objection to the amended Project Plan, and the parties are unable to resolve the objections and mutually agree upon the Project Plan prior to the final design date specified in the Design Schedule, then either party may, by written notice to the other party, submit the matter for resolution pursuant to the dispute resolution procedures in paragraph 16, below. The Project Plan, as mutually agreed upon by the parties or established through the dispute resolution process, shall be attached to and incorporated in a Project Construction Agreement substantially in the form attached hereto as Exhibit A(the"Construction Agreement")which is to be signed by the parties prior to commencement of the Construction Work. 11. The parties intend and agree that the Design Work and the Project Plan in its final form shall conform to the following requirements: (a) The Project Plan shall, if requested by the Government Entity in its initial Scope of Work, specify that the Government Entity shall install the ducts and vaults for the Conversion Project; provided that(i)the parties mutually agree upon and set forth in the Project Plan (A) the costs of such installation work to be included in the Cost of Conversion, and (B)the specifications and standards applicable to such installation work, and (ii) such installation work is accomplished by the Government Entity in accordance with the applicable design and construction specifications provided by the Company and set forth in the Project Plan. (b) Each estimate of the costs to be incurred by a party shall, at a minimum, be broken down by (i) the design and engineering costs, (ii) property and related costs, including any costs of obtaining operating rights, and (III) construction costs, including and listing separately inspection, labor, materials, and equipment. (c) All facilities of the Company installed as part of the Conversion Project shall be located, and all related property and operating rights shall be obtained, in the manner set forth in the applicable provisions of Schedule 74. The Project Plan shall describe in detail the location of such facilities, any related property and operating rights required to be obtained, and the relative responsibilities of the parties with respect thereto. (d) The schedule set forth in the Project Plan for completing the Construction Work shall include, at a minimum, milestone time periods for completion of the Trenching, installation of ducts and vaults, the construction and removal of any Temporary Service, and the removal of overhead facilities. (e) The Project Plan may include the specification of work and requirements for Government- Requested Upgrades and Company-Initiated Upgrades; provided, however, that the costs incurred by the Company with respect to the design and engineering of Company-Initiated Upgrades shall not be included in the costs reimbursable to the Company under this Agreement or the Construction Agreement. For purposes of the foregoing, (i)the term "Government- Requested Upgrade" shall mean any feature of the Underground Distribution System which is requested by the Government Entity and is not reasonably required to make the Underground Distribution System comparable to the overhead distribution system being replaced, and (ii) the term "Company-Initiated Upgrade"shall mean any feature of the Underground Distribution System which is required by the Company and is not reasonably required to make the Underground Distribution System comparable to the overhead distribution system being replaced. For Design Agreement, Attachment"A" to Schedule 74, Page 3 City of Kent—James St& Russell Rd Conversion 66 purposes of subparagraph (ii), above, a"comparable" system shall include, unless the parties otherwise agree, the number of empty ducts (not to exceed two (2), typically having a diameter of 6" or less)of such diameter and number as may be specified and agreed upon in the final Scope of Work necessary to replicate the load-carrying capacity (system amperage class) of the overhead system being replaced. For purposes of subparagraph (i), above, any empty ducts installed at the request of the Government Entity shall be a Government-Requested Upgrade. (f) The Project Plan shall set forth all specifications, design standards and other requirements for the Construction Work and the Conversion Project, including, but not limited to, the following: (i) applicable federal and state safety and electric codes and standards, (ii) applicable construction and other standards of the Company, and (iii)applicable street design and other standards of the Government Entity which are in effect as of the commencement of the Conversion Project. 12. Upon request of the Government Entity, and in any event at the times specified in the Design Schedule, the Company shall provide periodic reports which compare the actual costs of the Design Work incurred to that point in time to the Design Cost Estimate, as changed or amended in accordance with paragraph 13, below. Further, if at any time the Company reasonably expects that the actual cost of the Design Work will exceed the Design Cost Estimate, as changed or amended in accordance with paragraph 13, below, the Company shall notify the Government Entity immediately. Upon receipt of the Company's notice, the Government Entity may, at its option, (a) notify the Company in writing that this Agreement is terminated; or (b) request a reasonably detailed explanation supported by documentation (reasonably satisfactory to the Government Entity) to establish that the actual costs in excess of the Design Cost Estimate are: (i) reasonable, (ii) consistent with the Scope of Work, and (iii) consistent with sound engineering practices. If the Government Entity requests an explanation, the Government Entity shall, within ten (10) business days after receipt of the explanation, (a) change the Scope of Work in accordance with paragraph 13, below, or (b) direct the Company to continue with the Design Work without a change in the Scope of Work, but reserving to the Government Entity the right to dispute the reasonableness of the costs to be paid the Company under paragraph 14, below, in accordance with the dispute resolution procedures in paragraph 16, below, or (c) direct the Company to discontinue performing the Design Work pending resolution, pursuant to paragraph 16, below, of any dispute regarding the reasonableness of the costs, in which event the Design Schedule will be adjusted to reflect the delay, or (d) notify the Company in writing that this Agreement is terminated. In the event the Government Entity terminates this Agreement or discontinues the performance of the Design Work under subparagraph (c), above, for more than ninety(90) days, the Government Entity shall pay the Company for all costs incurred by the Company in its performance of the Design Work prior to the date the Company receives the Government Entity's notice of termination, plus any costs incurred by the Company for materials and other items ordered or procured by the Company with the prior authorization of the Government Entity in order to meet the schedule for the Conversion Project. The foregoing payment obligation shall survive any termination of this Agreement. Design Agreement, Attachment"A"to Schedule 74, Page 4 City of Kent—James St& Russell Rd Conversion 67 13. (a) Either party may, at any time, by written notice thereof to the other party, request changes to the Scope of Work (a "Request for Change"). No Request for Change shall be effective and binding upon the parties unless signed by an authorized representative of each party. If any approved Request for Change would cause an increase in the cost of, or the time required for, the performance of any part of the Design Work, an equitable adjustment in the Design Cost Estimate and the Design Schedule shall be made to reflect such increase. The parties shall negotiate in good faith with the objective of agreeing in writing on a mutually acceptable equitable adjustment. If the parties are unable to agree upon the terms of the equitable adjustment, either party may submit the matter for resolution pursuant to the dispute resolution procedures in paragraph 16, below. Notwithstanding any dispute or delay in reaching agreement or arriving at a mutually acceptable equitable adjustment, each party shall, if requested by the other party, proceed with the Design Work in accordance with the Request for Change. Any such request to proceed must be accompanied by a written statement setting forth the requesting party's reasons for rejecting the proposed equitable adjustment of the other party. (b) The Design Cost Estimate and/or the Design Schedule shall be equitably adjusted from time to time to reflect any change in the costs or time required to perform the Design Work to the extent such change is caused by: (i) any Force Majeure Event under paragraph 17, below, (ii)the discovery of any condition within the Conversion Area which affects the scope, cost, schedule or other aspect of the Design Work and was not known by or disclosed to the affected party prior to the date of this Agreement, or(iii) any change or inaccuracy in any assumptions regarding the scope, cost, schedule or other aspect of the Design Work which are expressly identified by the parties in the final Scope of Work. Upon the request of either party, the parties will negotiate in good faith with the objective of agreeing in writing on a mutually acceptable equitable adjustment. If, at any time thereafter, the parties are unable to agree upon the terms of the equitable adjustment, either party may submit the matter for resolution pursuant to the dispute resolution provisions in paragraph 16, below. 14. Upon completion of the Design Work(i.e., the date on which the Project Plan is final under paragraph 10, above, either by mutual agreement of the parties or as established through the dispute resolution procedures), the Government Entity shall pay the Company all actual, reasonable costs to the Company for the Design Work(which, if disputed in good faith by the Government Entity, may be submitted by either party for resolution pursuant to the dispute resolution provisions in paragraph 16, below), plus any costs incurred by the Company for materials and other items ordered by the Company with the prior authorization of the Government Entity in order to meet the schedule for the Conversion Project. If, thereafter, the Construction Agreement is executed by the parties and the Conversion Project is completed within five (5) years from the date of this Agreement, the full amount of the costs incurred by the Company in its performance of the Design Work shall be included in the "Shared Company Costs" under the Construction Agreement and any payment of such amounts under this Agreement shall be credited to the Government Entity in calculating the"Net Amount" payable under the Construction Agreement. 15. Within sixty (60) business days after completion of the Design Work, the Company shall issue to the Government Entity an itemized invoice for the amounts payable under this Agreement. Such invoice shall be in a form mutually agreed upon by the Company and the Government Entity and shall, at a minimum, itemize the design and engineering costs, including and listing separately inspection, labor, materials and equipment. In the event the Government Entity does not verify such invoice within ten (10) business days of receipt, the Government Entity shall provide a written request to the Company specifying the additional information needed to verify the invoice. The Company will provide, within a reasonable period after receipt of any request, such documentation and information as the Government Entity may reasonably request to verify such invoice. The Government Entity shall pay the Company all amounts payable under this Agreement within thirty (30) days after receipt of the Company's invoice. Payment as provided in this Agreement shall be full compensation for the Company's performance of the Design Work, including without limitation all services rendered and all materials, supplies, equipment, and incidentals necessary to complete the Design Work. Design Agreement, Attachment"A"to Schedule 74, Page 5 City of Kent—James St& Russell Rd Conversion 68 16. Dispute Resolution Procedures: (a) Any dispute, disagreement or claim arising out of or concerning this Agreement must first be presented to and considered by the parties. A party who wishes dispute resolution shall notify the other party in writing as to the nature of the dispute. Each party shall appoint a representative who shall be responsible for representing the party's interests. The representatives shall exercise good faith efforts to resolve the dispute. Any dispute that is not resolved within ten (10) business days of the date the disagreement was first raised by written notice shall be referred by the parties' representatives in writing to the senior management of the parties for resolution. In the event the senior management are unable to resolve the dispute within twenty(20) business days (or such other period as the parties may agree upon), each party may pursue resolution of the dispute through other legal means consistent with the terms of this Agreement. All negotiations pursuant to these procedures for the resolution of disputes shall be confidential and shall be treated as compromise and settlement negotiations for purposes of the state and federal rules of evidence. (b) Any claim or dispute arising hereunder which relates to the Scope of Work, Design Cost Estimate, and Design Schedule under paragraph 4, above; the Project Plan under paragraph 10, above; or any Request for Change (including, without limitation, any associated equitable adjustment) under paragraph 13, above, and is not resolved by senior management within the time permitted under paragraph 16(a), above, shall be resolved by arbitration in Seattle, Washington, under the Construction Industry Arbitration Rules of the American Arbitration Association then in effect. The decision(s)of the arbitrator(s) shall be final, conclusive and binding upon the Parties. All other disputes shall be resolved by litigation in any court or governmental agency, as applicable, having jurisdiction over the Parties and the dispute. (c) In connection with any arbitration under this paragraph 16, costs of the arbitrator(s), hearing rooms and other common costs shall be divided equally among the parties. Each party shall bear the cost and expense of preparing and presenting its own case (including, but not limited to, its own attorneys'fees); provided, that, in any arbitration, the arbitrator(s) may require, as part of his or her decision, reimbursement of all or a portion of the prevailing party's costs and expenses by the other party. (d) Unless otherwise agreed by the parties in writing, the parties shall continue to perform their respective obligations under this Agreement during the pendency of any dispute. 17. In the event that either party is prevented or delayed in the performance of any of its obligations under this Agreement by reason beyond its reasonable control (a"Force Majeure Event"), then that party's performance shall be excused during the Force Majeure Event. Force Majeure Events shall include, without limitation, war, civil disturbance, flood, earthquake or other Act of God; storm, earthquake or other condition which necessitates the mobilization of the personnel of a party or its contractors to restore utility service to customers; laws, regulations, rules or orders of any governmental agency; sabotage; strikes or similar labor disputes involving personnel of a party, its contractors or a third party; or any failure or delay in the performance by the other party, or a third party who is not an employee, agent or contractor of the party claiming a Force Majeure Event, in connection with the Work or this Agreement. Upon removal or termination of the Force Majeure Event, the party claiming a Force Majeure Event shall promptly perform the affected obligations in an orderly and expedited manner under this Agreement or procure a substitute for such obligation. The parties shall use all commercially reasonable efforts to eliminate or minimize any delay caused by a Force Majeure Event. 18. This Agreement is subject to the General Rules and Provisions set forth in Tariff Schedule 80 of the Company's electric Tariff G and to Schedule 74 of such Tariff as approved by the Washington Utilities and Transportation Commission and in effect as of the date of this Agreement. Design Agreement, Attachment"A" to Schedule 74, Page 6 City of Kent—James St& Russell Rd Conversion 69 19. Any notice under this Agreement shall be in writing and shall be faxed (with a copy followed by mail or hand delivery), delivered in person, or mailed, properly addressed and stamped with the required postage, to the intended recipient as follows: If to the Government Entity: City of Kent 400 West Gowe St. Kent, WA 98032 Attn: Toby Hallock Fax: 253-856-6500 If to the Companv: Puget Sound Energy, Inc. 6905 S. 228"St. Kent, WA 98032 Attn: Doug Corbin Fax: 253-395-6882 Either party may change its address specified in this paragraph by giving the other party notice of such change in accordance with this paragraph. 20. This Agreement shall in all respects be interpreted, construed and enforced in accordance with the laws of the State of Washington (without reference to rules governing conflict of laws), except to the extent such laws may be preempted by the laws of the United States of America. 21. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and all other agreements and understandings of the Parties, whether written or oral, with respect to the subject matter of this Agreement are hereby superseded in their entireties. 22. This Agreement shall be binding upon and inure to the benefit of the respective successors, assigns, purchasers, and transferees of the parties, including but not limited to, any entity to which the rights or obligations of a party are assigned, delegated, or transferred in any corporate reorganization, change of organization, or purchase or transfer of assets by or to another corporation, partnership, association, or other business organization or division thereof. Government Entity: Company: City of Kent PUGET SOUND ENERGY, INC. BY BY ITS ITS Municipal Liaison Manager Date Signed Date Signed Approved as to form: Design Agreement, Attachment"A° to Schedule 74, Page 7 City of Kent—James St& Russell Rd Conversion 70 This page intentionally left blank. 71 PUBLIC WORKS DEPARTMENT Timothy J. LaPorte, P.E., Public Works Director Phone: 253-856-5500 KEN T Fax: 253-856-6500 WASH IN GTO N Address: 220 Fourth Avenue S. Kent, WA 98032-5895 Date: April 17, 2014 To: Chair Dennis Higgins and Public Works Committee Members PW Committee Meeting Date: April 21, 2014 From: Monica Whitman, Senior Transportation Planner Through: Chad Bieren, P.E., City Engineer Subject: Information Only/Safe Routes to School Grant Funding — Local Match Item - 4 Motion: Information Only/No Motion Required Summary: The purpose of the Safe Routes to School (SRTS) program is to provide grants for projects that increase the number of children walking and biking to school. There are three elements to each Safe Routes to School program: engineering, education, and enforcement. The Public Works Department in partnership with the Kent Police Department will be submitting three Safe Routes to School grant requests: Meridian Elementary, Daniel Elementary, and Neely O'Brien Elementary. Meridian Elementary is located near the intersection of SE 256th Street and 140th Avenue SE, increased development in the area has resulted in heavy traffic around the school. The proposed project is estimated to cost $448,000 and will provide a traffic signal and asphalt walkway adjacent to the signal to assist crossing guards, parents, students, and motorists. Daniel Elementary is located near SE 248th Street and 116th Avenue SE. The proposed project is estimated to cost $100,000 and will relocate an existing crosswalk and overhead crosswalk sign to provide improved access for students walking to and from school. This project will also improve traffic flow through this segment of SE 248th Street. Neely O'Brien Elementary is located near 64th Avenue South and South 236th Street. The proposed project is estimated to cost $350,000 and will include installation of a new traffic signal and pedestrian crosswalk at the intersection of 64th Avenue South and South 236th Street. This project also includes the relocation and installation of traffic enforcement cameras. The level of funding provided this grant cycle is significantly less than in previous years, making this particular program increasingly competitive. While no match is 72 required, preference is given to projects that provide a local match. Public Works engineering staff analyzed the amount of local matching funds successful jurisdictions have provided in recent years for similar projects. The majority of the projects that were awarded funding provided a local match in the range of 5 -15%. Currently $8 million is anticipated, statewide, for both the Pedestrian and Bicycle Program and the Safe Routes to School Program for the 2015-2017; whereas, $30 million was awarded in the 2013-2015 cycle. Given that funding has been significantly reduced, staff anticipates that local funding will be necessary to remain competitive. Applications are due May 5, 2014. By December 15, 2014 a prioritized list of projects will be submitted to the Governor's office and the state legislature The legislature will include the final list in its budget, with award announcements expected by June 2015. Budget Impact: A 5% match for each of the three projects would require a total of $44,900 in city funds. Potential funding sources include: Revenue from school speed zone traffic safety cameras and/or School Pedestrian Walkways funding which currently has a fund balance of approximately $43,000.