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HomeMy WebLinkAbout6798 ORDINANCE NO. 6798 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RELATING TO UPDATING THE PROVISIONS FOR FRANCHISES AND LEASES FOR TELECOMMUNICATIONS, CABLE, AND UTILITIES CONSISTENT WITH CURRENT FEDERAL AND STATE REGULATIONS, AND REPLEALING CHAPTERS 13.36 AND 13.44, AND AMENDING TITLE 20 OF THE AUBURN CITY CODE WHEREAS, the City of Auburn adopted Ordinance No. 4625 on May 5, 1993 enacting Chapter 13.36 entitled "CATV Systems" pursuant to Federal and State regulations; and WHEREAS, the City of Auburn adopted Ordinance No. 3121 on October 4, 1976 enacting Chapter 13.44 entitled "Electrical Franchise"granting to Puget Sound Power and Light Company, their successor and assigns, a franchise; and WHEREAS, the City of Auburn adopted Ordinance No. 5034 January 5, 1998 enacting Title 20 entitled "Telecommunications and Other Commercial Utilities" pursuant to Federal and State regulations; and WHEREAS, the provisions of Chapter 13.44 ACC are outdated and electrical franchise agreements have recently been negotiated under current applicable law; and WHEREAS, the City has made only minor updates as necessary throughout the entire Auburn City Code since the adoption of Ordinance Nos. 4625 and 5034 as it relates to the regulation of telecommunications, cable systems and other utilities in the public ways and on public property; and WHEREAS, due to changes in Federal and State regulations that govern the regulation of such industries and their presence within the City, it is necessary to update Ordinance No. 6798 October 26, 2020 Page 1 of 3 Rev. 2019 the Auburn City Code in all titles, chapters an sections that authorize, regulate, affect or otherwise govern the review, construction, placement and siting of such telecommunications, cable and other utility facilities in the public ways and on city property or facilities; and WHEREAS, the City also seeks to clarify and update terms, procedural requirements and approval processes for permits, franchises and leases for telecommunications, cable and other utility facilities placed in the public ways and on city owned property or facilities. WHEREAS, the proposed amendments and changes to the Auburn City Code that are the subject of this Ordinance were also subject to state agency review by the Washington State Department of Commerce on or about October 9, 2020 for review; and WHERAS, the proposed amendment and changes to the Auburn City Code that are the subject of this Ordinance were also subject to State Environmental Policy Act review and decision issued October 19, 2020. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Repeal of City Code. Chapter 13.36 of the Auburn City Code is repealed as shown in Exhibit A. Section 2. Repeal of City Code. Chapter 13.44 of the Auburn City Code is repealed as shown in Exhibit B. Section 3. Amendment to City Code. Title 20 of the Auburn City Code is amended to read as shown in Exhibit C. Ordinance No. 6798 October 26, 2020 Page 2 of 3 Rev 2019 Section 4. Implementation. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Section 5. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application of it to any person or circumstance, will not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 6. Effective date. This Ordinance will take effect and be in force five days from and after its passage, approval, and publication as provided by law, or on January 1, 2021, whichever is later. INTRODUCEDDEC 2 1 2020 PASSED: DEC 2 1 2020 APPROVED:DEG 2 1 2020 ANCY KUS, MAYOR ATTEST: APPROVED AS TO FORM: Shawn Campbell, MMC,tity Clerk Kendra Comeau, City Attorney Published: DCc.G M 2 ) 2O2--0 Ordinance No. 6798 October 26, 2020 Page 3 of 3 Rev 2019 ------------------------- ORD 6798 EXHIBIT A PAGE 1 of 29    ORDINANCE 6798 EXHIBIT A Chapter 13.36 CATV SYSTEMS [Repealed] Sections: 13.36.010 Purpose. 13.36.020 Definitions. 13.36.030 Franchise – Conditions and term. 13.36.040 Franchise – Application requirements. 13.36.050 Public hearing and notice requirements. 13.36.060 Acceptance. 13.36.070 Police powers. 13.36.080 Rules and regulations by the city. 13.36.090 Technical standards and maintenance. 13.36.100 Parental control devices. 13.36.110 Construction standards. 13.36.120 Construction notification. 13.36.130 Undergrounding and landscaping. 13.36.140 Construction in right-of-way. 13.36.150 Safety requirements. 13.36.160 Building moving. 13.36.170 Tree trimming. 13.36.180 Rates. 13.36.190 Discounts. 13.36.200 Customer service. 13.36.210 Telephone response. 13.36.220 Failure to improve customer service. 13.36.230 Franchise fee. ------------------------- ORD 6798 EXHIBIT A PAGE 2 of 29    13.36.240 Cable system evaluation. 13.36.250 Periodic meetings. 13.36.260 Record inspection. 13.36.270 Reports. 13.36.280 Programming. 13.36.290 Nondiscrimination. 13.36.300 Continuity of service. 13.36.310 Franchise renewal. 13.36.320 Transfer of ownership. 13.36.330 Removal and abandonment – Franchisee property. 13.36.340 Termination – Revocation for cause. 13.36.350 Effect of termination for noncompliance. 13.36.360 Indemnity and hold harmless. 13.36.370 Insurance. 13.36.380 Performance bond. 13.36.390 Franchising costs. 13.36.400 Equalization of civic contributions. 13.36.410 Inconsistency. 13.36.420 Severability. For statutory provisions authorizing third-class cities to manage and control the city streets, see RCW 35.24.290(3); for provisions authorizing code cities to regulate and grant nonexclusive franchises for facilities for the transmission of signals and other methods of communication, see RCW 35A.47.040. 13.36.010 Purpose. The purpose of this chapter is to set forth an integrated statement of conditions, requirements, obligations, duties and procedures for granting by the city of a nonexclusive franchise for the construction, maintenance and operation of a system ------------------------- ORD 6798 EXHIBIT A PAGE 3 of 29    of cable television signal distribution within the territorial limits of the city of Auburn. (Ord. 4625 § 2, 1993.) 13.36.020 Definitions. For the purposes of this chapter, the following definitions will apply: A. “Access channels” (commonly referred to as “PEG” channels”) means free composite channels to be used for educational purposes and by government and public agencies and/or their representatives. B. “The Act” means the Cable Television Consumer Protection and Competition Act of 1992, and any subsequent amendments thereto. C. “Addressability” means the ability of a system allowing a franchisee to authorize by remote control customer terminals to receive, change or to cancel any or all specified programming. D. “Affiliate” means a condition of being united, being in close connection, allied, or attached as a member or branch. E. “Applicant” means any person or entity that applies for a franchise. F. “Basic cable” is the tier of service regularly provided to all subscribers that includes the retransmission of local broadcast television signals. G. “Cable services” means (1) the one-way transmission to subscriber of video programming or other programming service, and (2) subscriber interaction, if any, which is required for the selection by the subscriber of such video programming or other programming service. H. “Channel” means a single path or section of the spectrum which carries a television signal. ------------------------- ORD 6798 EXHIBIT A PAGE 4 of 29    I. “Character generator” means a device used to generate alphanumerical programming to be cablecast on a cable channel. J. “City” means the city of Auburn, a municipal corporation of the state of Washington. K. “Cable system” means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service and other service to subscribers. L. “Council” means the city council of the city of Auburn. M. “Data communication” means (1) the movement of encoded information by means of electrical or electronic transmission systems; and (2) the transmission of data from one point to another over communications channels. N. “Dwelling units” means residential living facilities as distinguished from temporary lodging facilities such as hotel and motel rooms and dormitories, and includes single- family residential units and individual apartments, condominium units, mobile homes within mobile home parks, and other multiple-family residential units. O. “FCC” means the Federal Communications Commission, a regulatory agency of the United States government. P. “Franchise” means the initial authorization, or renewal thereof, issued by the franchising authority, whether such authorization is designated as a franchise, permit, license, resolution, contract, certificate or otherwise, which authorizes construction and operation of the cable system for the purpose of offering cable service or other service to subscribers. Q. “Franchisee” means the person, firm or corporation to whom or which a franchise, as herein above defined, is granted by the council pursuant to this chapter, and the lawful successor, transferee or assignee of said person, firm or corporation subject to such conditions as may be defined in this chapter and in a franchise granted in compliance with this chapter. ------------------------- ORD 6798 EXHIBIT A PAGE 5 of 29    R. “Gross revenues” means any and all revenue derived directly or indirectly by franchisee, or by franchisee’s affiliates, as defined in the federal Cable Act, from the operation of the franchisee’s cable system to provide cable services in the franchise area. Gross revenues include, by way of illustration and not limitation, monthly and other fees charged subscribers for cable services including basic service, expanded basic service, any expanded tiers of cable service, other tiers of cable service, optional premium service, video on demand, pay-per-view, per-program channels, cable service installation, disconnection, reconnection and change-in-service fees, leased access channel fees, remote control rental fees, late fees and administrative fees, consideration received by the franchisee from programmers for carriage of cable services on the cable system and recognized as revenue under generally accepted accounting principles (GAAP), revenues from rentals of converters or other cable system equipment, advertising sales revenues (including local and a pro rata share of regional and national advertising carried on the cable system in the franchise area), net of commissions due to franchisee’s unaffiliated advertising agencies that arrange for the advertising buy, revenues from program guides, additional outlet fees, revenue from the sale or carriage of other cable services, revenues from home shopping, and a fairly apportioned percentage of fees associated with bundled services (i.e., late fees, NSF fees, etc.). Gross revenues shall not include (1) bad debt; provided, however, that all or part of any such bad debt that is written off but subsequently collected shall be included in gross revenues in the period collected; or (2) any taxes on services furnished by the franchisee that are imposed directly on any subscriber or user by the state, grantor or other governmental unit and that are collected by the franchisee on behalf of said governmental unit; or (3) the PEG fee as required by this franchise. The franchise fees are not a tax and are therefore included in gross revenues. This definition shall be construed so as to include all gross revenues to the maximum extent permitted by federal and state law, except to the extent specifically excluded in this section, and encompasses revenues that may develop in the future, whether or not anticipated. If a statutory change in state or federal law or a decision of the FCC or a court of competent jurisdiction expands or contracts the categories of revenue ------------------------- ORD 6798 EXHIBIT A PAGE 6 of 29    available to the city for the franchise fee assessment beyond those permitted under this definition as of the effective date, this franchise may be amended to include or exclude any such category of revenue in the definition of gross revenues under this franchise; provided, that the city amends the franchises of all other similarly situated multichannel video provider over which the city has jurisdiction and authority to impose such fees. S. “Headend” means the electronic equipment located at the start of a cable system, usually including antennas, preamplifiers, frequency converters, demodulators and related equipment. T. “High definition television (HDTV)” means a television system that will provide sharper picture definition than the current U.S. Standards, 525 lines per frame. U. “Insertion point(s)” means location(s) where institutional programming can be initiated for distribution throughout the secured portion of the subscriber network. V. “Installation” means the connection of the system from feeder cable to subscribers’ terminals. W. “Institutional services” means a cable communications system designated principally for the provision of nonentertainment services to schools, public agencies or other nonprofit agencies which is separate and distinct from the subscriber network or is on secured channels of the subscriber network. X. “Interactive services” means services provided to subscribers where the subscriber either (1) receives information consisting of television or other signals and transmits signals generated by the subscriber or equipment under their control for the purpose of selecting what information shall be transmitted to the subscriber or for any other purpose; or (2) transmits signals to any other location for any purpose. Y. “NCTA” means the National Cable Television Association. Z. “Office” means the person or entity designated by the city of Auburn as being responsible for the administration of a franchise for the city. ------------------------- ORD 6798 EXHIBIT A PAGE 7 of 29    AA. “Operator” means the person, firm or corporation to whom a franchise is granted pursuant to the provisions of chapter. BB. “Premium services” means programming over and above those provided by basic services for which there is an additional charge. CC. “Property of franchisee” means all property owned, installed or used by a franchisee in the conduct of its business in the city under the authority of a franchise granted pursuant to this chapter. DD. “Proposal” means (1) the response by an individual or organization to a request by the city regarding the provision of cable services; or (2) an unsolicited plan submitted by an individual or organization seeking to provide cable services in the city. EE. “Public way” means the surface of, and the space above and below, any public street, highway, freeway, bridge, land path, alley, court, boulevard, sidewalk, parkway, way, lane, drive, circle or other public right-of-way, including, but not limited to, public utility easements, dedicated utility strips or rights-of-way dedicated for compatible uses and any temporary or permanent fixtures or improvements located thereon now or hereafter held by the city in the service area which shall entitle the city and a franchisee to the use thereof for the purpose of installing, operating, repairing and maintaining the cable system. “Public way” shall also mean any easement now or hereafter held by the city within the service area for the purpose of public travel, or for utility or public service use dedicated for compatible uses, and shall include other easements or rights-of-way as shall within their proper use and meaning entitle the city and a franchisee to the use thereof for the purpose of installing or transmitting franchisee’s cable service or other service over poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appurtenances, attachments and other property as may be ordinarily necessary and pertinent to the cable system. ------------------------- ORD 6798 EXHIBIT A PAGE 8 of 29    FF. “Subscriber” means a person or entity or user of the cable system who lawfully receives cable services or other service therefrom with franchisee’s express permission. (Ord. 6284 § 1, 2010; Ord. 4625 § 2, 1993.) 13.36.030 Franchise – Conditions and term. A. Authority to Grant Franchises or Licenses for Cable Television. The council may by resolution award a nonexclusive franchise to construct, operate and maintain a cable communications system which complies with the requirements and conditions of this chapter. Any franchise granted pursuant to this chapter shall be nonexclusive and shall not preclude the city from granting other or further franchises or permits, or preclude the city from using any roads, rights-of-way, streets, or other public properties, or affect its jurisdiction over them or any part of them, or limit the full power of the city to make such changes as the city shall deem necessary, including the dedication, establishment, maintenance, and improvement of all new rights-of- way and thoroughfares and other public properties; provided, that any such changes shall not materially or substantially impair the rights granted a franchisee pursuant to this chapter. All franchises granted subsequent to the effective date of this chapter shall be consistent with the requirements and conditions of this chapter. B. Incorporation by Reference. The provisions of this chapter shall be incorporated by reference in any franchises approved pursuant hereto. The provisions of any proposal for a franchise submitted and accepted by the city shall be incorporated by reference in the applicable franchise; provided, that in the event of any conflict between the proposal, this chapter and the franchise, the franchise shall be the prevailing document. C. Conditions of a Franchise. Subject to the provisions in this chapter, any franchise granted hereunder by the city shall authorize a franchisee to: (1) engage in the business of operating and providing cable service and the distribution and sale of such service to subscribers within the city; and (2) erect, install, construct, repair, replace, reconstruct, maintain and retain in, on, over, under, upon, across and along ------------------------- ORD 6798 EXHIBIT A PAGE 9 of 29    any street, such amplifiers and appliances, lines, cables, conductors, vaults, manholes, pedestals, attachments, supporting structures, and other property as may be necessary and appurtenant to the cable communications system; and (3) use, operate and provide similar facilities, or properties rented or leased from other persons, firms or corporations, including but not limited to any public utility or other franchisee franchised or permitted to do business in the city; provided, that no privilege or exemption shall be granted or conferred upon a franchisee by any franchise except those specifically prescribed therein, and any use of any street shall be consistent with any prior lawful occupancy of the street or any subsequent improvement or installation therein. D. Term of Franchise. The council shall have the right to grant a franchise for a period of time which in the council’s judgement is the most appropriate to the circumstances of the particular grant and is in the best interests of the citizens of the city. (Ord. 4625 § 2, 1993.) 13.36.040 Franchise – Application requirements. An applicant for an initial franchise to construct, operate, and maintain a cable communication system within the city shall file an application in a form prescribed by the city, accompanied by a nonrefundable franchise application fee in the amount set forth in the city of Auburn fee schedule. (Ord. 6546 § 1, 2014; Ord. 4625 § 2, 1993.) 13.36.050 Public hearing and notice requirements. A. Prior to the granting of a franchise, the city council shall conduct a public hearing to determine the following: 1. That the public will be benefited by the granting of a franchise to the applicant; ------------------------- ORD 6798 EXHIBIT A PAGE 10 of 29    2. That the applicant has requisite financial and technical resources and capabilities to build, operate and maintain a cable television system in the area; 3. That the applicant has no conflicting interests, either financial or commercial, which will be contrary to the interests of the city; 4. That the applicant will comply with all terms and conditions placed upon a franchisee by this chapter; 5. That the applicant is capable of complying with all relevant federal, state, and local regulations pertaining to the construction, operation and maintenance of the facilities and systems incorporated in its application for a franchise; 6. The capacity of public rights-of-way to accommodate the cable system; 7. The present and future use of the public rights-of-way to be used by the cable system; and 8. The potential disruption to existing users of the public rights-of-way to be used by the cable system and the resultant inconvenience which may occur to the public. B. Notice of the public hearing shall comply with the following: 1. Briefly describe the purpose of hearing and state the place where the relevant information is available to the public, the time and place of the hearing and the date by which written comments must be submitted. 2. Published at least once during the two-week period preceding the hearing in a newspaper of general circulation within the city, and in one or as many more community newspapers as may be necessary to cover the entire cable franchise area, and be broadcast over the local access channel of the grantee in the cable franchise area affected at least once each day between the hours of 9:00 a.m. and 11:00 p.m. during the two weeks immediately preceding the hearing. (Ord. 4625 § 2, 1993.) ------------------------- ORD 6798 EXHIBIT A PAGE 11 of 29    13.36.060 Acceptance. A. No franchise granted pursuant to the provisions of this chapter shall become effective unless and until the resolution granting same has become effective and the grantee has accepted same as provided below. B. Within 60 days after the effective date of the resolution awarding a franchise, or within such extended period of time as the council in its discretion may authorize, a franchisee shall file with the city clerk its written acceptance of the franchise, in a form satisfactory to the city attorney, together with the bond and insurance policies required by ACC 13.36.370 and 13.36.380. (Ord. 4625 § 2, 1993.) 13.36.070 Police powers. In accepting any franchise, a franchisee acknowledges that its rights hereunder are subject to the legitimate rights of the police power of the city to adopt and enforce general laws necessary to protect the safety and welfare of the public. The franchisee also agrees to comply with all applicable general laws enacted by the city pursuant to such power so long as such regulations do not materially increase the burden or impair the rights of the franchise as provided for in this chapter. (Ord. 4625 § 2, 1993.) 13.36.080 Rules and regulations by the city. In addition to the inherent powers of the city to regulate and control any franchise it issues, the authority granted to the city by the Act, and those powers expressly reserved by the city or agreed to and provided for in a franchise, the city also reserves the right and power to promulgate such additional regulations as it may find necessary in the exercise of its lawful powers. (Ord. 4625 § 2, 1993.) ------------------------- ORD 6798 EXHIBIT A PAGE 12 of 29    13.36.090 Technical standards and maintenance. A. Subject to federal, state and local law, a franchisee shall comply with FCC Rules, Part 76, Subpart K, Section 76.601 through 76.610 and as amended hereafter, and, at the minimum, the following: 1. Applicable city, county, state and national/federal codes, laws and regulations; 2. Applicable utility joint attachment practices; 3. The National Electric Safety Code; ANSI C2; 4. Local utility code requirements; 5. Local rights-of-way procedures, in accordance with ACC Titles 12, 13 and 20. B. A comprehensive routine preventive maintenance program shall be developed, effected and maintained to ensure continued top quality cable communications operating standards in conformance with FCC Regulations Part 76 and amendments thereto. (Ord. 6238 § 3, 2009; Ord. 4625 § 2, 1993.) 13.36.100 Parental control devices. A franchisee will make available at its cost, including applicable handling fees, a device by which the subscriber can prohibit viewing of a particular cable service during periods selected by that subscriber. (Ord. 4625 § 2, 1993.) 13.36.110 Construction standards. All facilities constructed pursuant to the provisions of this chapter shall be placed and maintained at such places and positions in or upon such streets, avenues, alleys and public places as shall not interfere with the passage of traffic and the use of adjoining property, and shall conform to the applicable sections of the National Electrical Code, ------------------------- ORD 6798 EXHIBIT A PAGE 13 of 29    codes of the state of Washington and ACC Titles 12, 13 and 20 pertaining to such construction. (Ord. 6238 § 4, 2009; Ord. 4625 § 2, 1993.) 13.36.120 Construction notification. Upon application for each construction permit in compliance with this chapter, a franchisee shall submit to city its plan for advance notification for the proposed construction project. In the event that an emergency situation arises which precludes such advance notification, a franchisee shall subsequently inform the city of the nature of the extraordinary event and the action taken. (Ord. 4625 § 2, 1993.) 13.36.130 Undergrounding and landscaping. Undergrounding of all utility facilities will meet the requirements of Chapter 13.32A ACC. (Ord. 6238 § 5, 2009; Ord. 4625 § 2, 1993.) 13.36.140 Construction in right-of-way. Whenever, in the sole opinion of the city, any of a franchisee’s facilities or equipment need to be relocated or altered due to a construction or repair project by the city in a public way, a franchisee shall move or relocate said facilities or equipment within 30 days from receiving written notice from the city. However, in the event such relocation is required due to emergency repairs deemed necessary by the city, such relocation or moving shall be accomplished within 24 hours. Any relocation or alteration of a franchisee’s facilities or equipment required under this section shall be at the sole expense of a franchisee. Installation and/or relocation of all underground and aerial facilities within existing city right-of-way or public ways or city utility easements shall be permitted under Chapter 12.24 ACC, Construction Permits. (Ord. 5043 § 1 (Exh. B), 1998; Ord. 4625 § 2, 1993.) ------------------------- ORD 6798 EXHIBIT A PAGE 14 of 29    13.36.150 Safety requirements. A franchisee, in accordance with applicable national, state, and local safety requirements shall, at all times, employ ordinary care and shall install and maintain and use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injury, or nuisance to the public. All structures and all lines, equipment and connections in, over, under, and upon the streets, sidewalks, alleys, and public ways or places of a franchise area, wherever situated or located, shall at all times be kept and maintained in a safe, suitable condition and in good order and repair. The city reserves the general right to see that the system of a franchisee is constructed and maintained in a safe condition. If a violation of the National Electrical Safety Code or other applicable regulation is found to exist by the city, the city will, after discussions with a franchisee, establish a reasonable time for a franchisee to make necessary repairs. If the repairs are not made within the established time frame, the city may make the repairs itself or have them made and collect all reasonable costs thereof from the franchisee. (Ord. 4625 § 2, 1993.) 13.36.160 Building moving. Whenever any person shall have obtained permission from the city to use any street for the purpose of moving any building, a franchisee shall, upon seven days’ written notice from the city, raise or remove, at the expense of the permittee desiring to move the building, any of a franchisee’s wires which may obstruct the removal of such building; provided, that the moving of such building shall be done in accordance with the codes and regulations of the city. Where more than one street is available for the moving of such building, the building shall be moved on such street as shall cause the least interference. In such event, the city shall be responsible for determining the path of least interference. It is further provided that the person or persons moving such building shall indemnify and save harmless said franchisee ------------------------- ORD 6798 EXHIBIT A PAGE 15 of 29    from any and all damages or claims of any kind or nature caused directly or indirectly for such temporary arrangement of the lines and poles of a franchisee. (Ord. 4625 § 2, 1993.) 13.36.170 Tree trimming. Upon approval of the director of public works, a franchisee shall have the authority to trim trees upon and overhanging streets, public ways and public places in the franchise area so as to prevent the branches of such trees from coming into contact with a franchisee’s wires and cables, and, if necessary, to clear a microwave path. A franchisee shall be responsible for debris removal from such activities. Failure to remove debris after a reasonable time shall result in the debris being removed by the city and the costs involved charged to the franchisee. (Ord. 4625 § 2, 1993.) 13.36.180 Rates. Within 60 days after the grant of any franchise hereunder, a franchisee shall file with the city a complete schedule of all rates to be charged to all subscribers. Prior to implementation of any change in rates or charges for any service or equipment provided by a franchisee, the franchisee shall provide the city and all subscribers a minimum of 30 days prior written notice of such change. Subject to federal, state and local law, the city may regulate the approval of increases of rates or charges for providing cable service and prescribe reasonable rate approval procedures. (Ord. 4625 § 2, 1993.) 13.36.190 Discounts. A franchisee shall offer a discount of 30 percent from the normal charge for basic services and installation to those individuals age 62 or older or disabled who are the ------------------------- ORD 6798 EXHIBIT A PAGE 16 of 29    legal owner or lessee/tenant of their residence provided that their combined disposable income from all sources does not exceed the Housing and Urban Development (HUD) standards for the Seattle-Everett area for the preceding calendar year. The city or its designee shall be responsible for certifying to a franchisee that such applicants conform to the specified criteria. (Ord. 4625 § 2, 1993.) 13.36.200 Customer service. A. A franchisee shall render repair service to restore the quality of the signal at approximately the same standards existing prior to the failure or damage of the component causing the failure and make repairs promptly and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during a period of minimum use of the system. A log of all service interruptions shall be maintained for at least a period of one year. The city, after two working days’ notice, may inspect such logs. B. An employee of a franchisee shall answer and respond to all individual complaints received no later than 5:00 p.m. weekdays. A franchisee may use an answering service to receive complaints after 5:00 p.m. weekdays, weekends and holidays and will respond to any system outage affecting more than five subscribers. A copy of the instructions to the answering service by a franchisee shall be furnished to the city or its designee. C. A technician shall be on call seven days a week, 24 hours a day. A franchisee shall respond immediately to service complaints in an efficient manner. D. A franchisee shall maintain a sufficient repair force to respond to individual requests for repair service within two working days after receipt of the complaint or request, except Saturday, Sunday and legal holidays. All complaints shall be resolved within seven days, to the extent reasonable. If a subscriber has notified a franchisee of an outage, no charge for the period of the outage shall be made to the ------------------------- ORD 6798 EXHIBIT A PAGE 17 of 29    subscriber if the subscriber was without service for a period exceeding 24 hours, unless the outage was due to acts of God, force majeure or circumstances reasonably beyond a franchisee’s ability to control. E. A franchisee shall supply at the time of a new connection, and periodically at least once a year, the title, address, and telephone number of the city official or designee, to whom system subscribers may direct their concerns. F. In no case will a franchisee’s service standards fall below the standards established by the National Cable Television Association (NCTA) which are attached to the ordinance codified in this chapter as Appendix “A” and incorporated within this chapter1 or any FCC regulation. (Ord. 4625 § 2, 1993.) 1 Code reviser’s note: Appendix “A” is on file in the office of the city clerk. 13.36.210 Telephone response. A. A franchisee shall maintain an adequate force of customer service representatives as well as incoming trunk lines so that telephone inquiries are met promptly and responsively. A franchisee shall have in place procedures for utilization of other manpower and/or recording devices for handling the flow of telephone calls at peak periods of large outages or other major causes of subscriber concern. A copy of such procedures and/or policies shall be made available to the city. B. In order that the city may be informed of a franchisee’s success in achieving satisfactory customer relations in its telephone answering functions, a franchisee shall, upon request by the city, and routinely no less than quarterly, provide the city with a summary that will provide, at a minimum, the following: 1. Total number of calls received in reporting periods; 2. Time taken to answer; 3. Average talk time; ------------------------- ORD 6798 EXHIBIT A PAGE 18 of 29    4. Number of calls abandoned by the caller; 5. Average hold time; 6. Percentage of time all lines busy; 7. An explanation of any abnormalities. This data will be compared to minimum standards of the NCTA incorporated in this chapter by reference or any amendment thereto which increases such NCTA standards, and shall be monitored by the city. C. Calls for service generated during period of system outages due to emergency which affects more than 25 customers may be excluded from the service response calculations. The city shall have the sole determination as to what constitutes a system failure due to emergency and which calls shall be excluded from the service level calculations. (Ord. 4625 § 2, 1993.) 13.36.220 Failure to improve customer service. A. The city or its designee shall review telephone response and customer service information with a franchisee. The franchisee shall make improvements in the appropriate categories which were found deficient pursuant to ACC 13.36.190 and 13.36.200 from the last reporting period. Failure to do so may result in the calling of a public hearing by the council for the purpose of examining the reasons, if any, why such improvements were not achieved by a franchisee. B. An unsatisfactory record will result in the hearings being made part of an exhibit under Sections 626(c)(1)(A) and (B) of the Act alleging that such practices have failed to conform with future refranchising requirements as stated therein. In addition, a franchisee’s corporate office shall be advised of the city’s findings. (Ord. 4625 § 2, 1993.) ------------------------- ORD 6798 EXHIBIT A PAGE 19 of 29    13.36.230 Franchise fee. A franchisee shall pay to the city quarterly, on or before the thirtieth day of each January, April, July and October, a sum as set forth in the Auburn fee schedule. Such remittances shall be accompanied by forms furnished by the city to report detailed information as to the sources of such income. (Ord. 6546 § 2, 2014; Ord. 4625 § 2, 1993.) 13.36.240 Cable system evaluation. A. In addition to periodic meetings, the city may require reasonable evaluation sessions at any time during the term of a franchise. It is intended that such evaluations cover areas such as customer service, response to the community’s cable-related needs, and a franchisee’s performance under and compliance with the terms of a franchise. B. During an evaluation session, a franchisee shall fully cooperate with the city and shall provide without cost such reasonable information and documents as the city may request to perform evaluations. C. If the city has concerns because of uncorrected and reoccurring problems with the franchisee’s cable system, the city may retain an independent consultant to conduct an analysis of the cable system and its performance and submit a report of such analysis to the city. The city shall take into consideration any efforts taken to correct such deficiencies. D. The report prepared by the consultant in response to the city’s request for a system evaluation shall include: 1. A description of the technical problem in cable system performance which precipitated the special tests; 2. What cable system components were tested; ------------------------- ORD 6798 EXHIBIT A PAGE 20 of 29    3. The equipment used and procedures employed in testing; 4. The method, if any, by which specific performance problems may be resolved; 5. Any other information pertinent to said tests and analyses which may be required by the city, or determined when the test is performed. E. If the tests indicate that the system is not in compliance with FCC standards or the requirements of the franchise, a franchisee shall reimburse the city for any costs involved in conducting such tests, such as consultant fees or other expenses. Such fees or expenses shall not exceed $2,500 for each evaluation. (Ord. 4625 § 2, 1993.) 13.36.250 Periodic meetings. Upon request, a franchisee shall meet with designated city officials and/or designated representative(s) to review the performance of a franchisee for the preceding period. The subjects may include, but are not limited to, those items covered in the periodic reports and performance tests. (Ord. 4625 § 2, 1993.) 13.36.260 Record inspection. Subject to statutory and constitutional limits and two working days’ advance notice, the city reserves the right to inspect the records of a franchisee necessary for the enforcement of a franchise and verification of the accuracy of franchise fee payments at any time during normal business hours; provided, that the city shall maintain the confidentiality of any trade secrets or other proprietary information in the possession of a franchisee. Such documents shall include such information as financial records, subscriber records within the context of Section 631 of the Act, and plans pertaining to a franchisee’s operation in the city. (Ord. 4625 § 2, 1993.) ------------------------- ORD 6798 EXHIBIT A PAGE 21 of 29    13.36.270 Reports. A franchisee shall furnish, upon request, a report of its activities as appropriate. Such report shall include: A. Most recent annual report; B. A copy of the 10-K Report, if required by the Securities and Exchange Commission; C. The number of homes passed; D. The number of subscribers with basic services; E. The number of subscribers with premium services; F. The number of hook-ups in period; G. The number of disconnects in period; H. Total number of miles of cable in city; I. Summary of complaints received by category, length of time taken to resolve and action taken to provide resolution; J. A statement of its current billing practices, and a sample copy of the bill format; K. A current copy of its subscriber service contract; L. Report on operations; and M. Such other reports with respect to its local operation, affairs, transactions or property that may be appropriate. (Ord. 4625 § 2, 1993.) ------------------------- ORD 6798 EXHIBIT A PAGE 22 of 29    13.36.280 Programming. For informational purposes, a franchisee shall file a listing of its programing and the tiers in which they are placed. A franchisee shall consider the city’s suggestions of general program categories as determined from time to time in residential questionnaire polls. The results of initial such surveys will be appended to the respective franchise agreements. (Ord. 4625 § 2, 1993.) 13.36.290 Nondiscrimination. A. A franchisee shall not, as to rates, charges, service facilities, rules, regulations or in any other respect, make or grant any preferences or advantage to any person nor subject any person to any prejudice or disadvantage; provided, that nothing in this chapter shall be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any customer coming within such classification would be entitled; and, provided further, that connection and/or service charges may be waived or modified during promotional campaigns of a franchisee. B. A franchisee will not deny access to cable communications service to any group of potential residential subscribers because of the income of the residents of the local area in which the group resides. (Ord. 4625 § 2, 1993.) 13.36.300 Continuity of service. It shall be the right of all subscribers to continue receiving service so long as their financial and other obligations to a franchisee are fulfilled. A. In this regard a franchisee shall act so far as it is within its control to ensure that all subscribers receive continuous uninterrupted service during the term of the franchise. ------------------------- ORD 6798 EXHIBIT A PAGE 23 of 29    B. In the event a franchisee fails to operate a system for 72 continuous and consecutive hours without prior notification to and approval of the city council or without just cause such as an impossibility to operate the system because of the occurrence of an act of God or other circumstances reasonably beyond a franchisee’s control, the city may, after notice and an opportunity for a franchisee to commence operations at its option, operate the system or designate someone to operate the system until such time as a franchisee restores service to conditions acceptable to the city council or a replacement franchisee is selected. If the city is required to fulfill this obligation for a franchisee, a franchisee shall reimburse the city for all reasonable costs or damages in excess of revenues from the system received by the city that are the result of a franchisee’s failure to perform. (Ord. 4625 § 2, 1993.) 13.36.310 Franchise renewal. The provisions of Section 626 of the Act, or other applicable federal or state law, will govern the actions of the city and a franchisee in proceedings relating to franchise renewal. The city expressly reserves the right to establish guidelines and monitoring systems in accordance with the provisions of the Act to measure the effectiveness of a franchisee’s performance during the term of such franchise. (Ord. 4625 § 2, 1993.) 13.36.320 Transfer of ownership. A. A franchisee’s right, title, or interest in the franchise shall not be sold, transferred, assigned, or otherwise encumbered, other than to an affiliate, without the prior consent of the city, such consent not to be unreasonably withheld. No such consent shall be required, however, for a transfer in trust, by other hypothecation, or by assignment of any rights, title, or interest of the franchisee in the franchise or cable system in order to secure indebtedness. Approval shall not be required for mortgaging purposes provided that the collateral does not specifically affect the ------------------------- ORD 6798 EXHIBIT A PAGE 24 of 29    assets of this franchise, or if the transfer is from a franchisee to another person or entity controlling, controlled by, or under common control with a franchisee. B. In any transfer of a franchise requiring city approval, the applicant must show technical ability, financial capability, legal and general qualifications as determined by the city, and must agree to comply with all provisions of the franchise. All costs associated with the transfer process shall be reimbursed to the city. C. An assignment of a franchise shall be deemed to occur if there is an actual change in control or where ownership of 50 percent or more of the beneficial interests, singly or collectively, are obtained by other parties. The word “control” as used herein is not limited to majority stock ownership only, but includes actual working control in whatever manner exercised. D. Regardless of the circumstances, a franchisee shall promptly notify the city prior to any proposed change, transfer, or acquisition by any other party of a franchisee’s company. 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 cancel the franchise. (Ord. 4625 § 2, 1993.) 13.36.330 Removal and abandonment – Franchisee property. A. The city may direct a franchisee to temporarily disconnect or bypass any equipment of a franchisee in order to complete street construction or modification, install and remove underground utilities, or for other reasons of public safety and efficient operation of the city. Such removal, relocation or other requirement shall be at the sole expense of a franchisee. B. In the event that the use of any part of the cable system is discontinued for any reason for a continuous period of 12 months, or in the event such system or property has been installed in any street or public place without complying with the requirements of the franchise or other city ordinances or the franchise has been terminated, cancelled or has expired, a franchisee shall promptly, upon being given ------------------------- ORD 6798 EXHIBIT A PAGE 25 of 29    10 days’ notice, remove within 90 days from the streets or public places all such property and poles of such system other than any which the city may permit to be abandoned in place. In the event of such removal, a franchisee shall promptly restore the street or other areas in accordance with local regulations and standards from which such property has been removed to a condition similar to that existing before such removal and satisfactory to the city. Such approval shall not be unduly withheld. C. Any property of a franchisee remaining in place 90 days after the termination or expiration of the franchise shall be considered permanently abandoned. The city may extend such time not to exceed an additional 90 days. D. Any property of a franchisee to be abandoned in place shall be abandoned in such manner as the city shall prescribe. Upon permanent abandonment of the property of a franchisee in place, the property shall become that of the city, and a franchisee shall submit to the city clerk an instrument in writing, to be approved by the city attorney, transferring to the city the ownership of such property. None of the foregoing affects or limits franchisee’s rights to compensation for an involuntary abandonment of its property under state or federal law. In the event the city and a franchisee are unable to agree as to whether an abandonment is voluntary for the purposes of this section, either party may invoke arbitration to resolve such question. (Ord. 4625 § 2, 1993.) 13.36.340 Termination – Revocation for cause. A. If a franchisee willfully violates or fails to comply with any of the material provisions of a franchise, the city shall give written notice to a franchisee of the alleged noncompliance of its franchise. A franchisee shall have 45 days from the date of notice of noncompliance to cure such alleged default or, if such default cannot be cured within 45 days, to present to the city a plan of action whereby such default can be promptly cured. ------------------------- ORD 6798 EXHIBIT A PAGE 26 of 29    B. If such default continues beyond the applicable dates agreed to for such cure, the city shall give a franchisee written notice that all rights conferred under this chapter and pursuant to its franchise may be revoked or terminated by the council after a public hearing. A franchisee shall be entitled to not less than 30 days’ prior notice of the date, time and place of the public hearing. The city may elect, in lieu of the above and without any prejudice to any of its other legal rights and remedies, to obtain an order from the superior court having jurisdiction compelling a franchisee to comply with the provisions of the franchise and recover damages and costs incurred by the city by reason of a franchisee’s failure to comply. (Ord. 4625 § 2, 1993.) 13.36.350 Effect of termination for noncompliance. Subject to state and federal law, if any franchise is terminated by the city by reason of a franchisee’s noncompliance, that part of the system under such franchise located in the streets and public property, shall, at the election of the city, become the property of the city at a cost consistent with the provisions of Section 627(b)(1) of the Act. If the city, or a third party, does not purchase the system, a franchisee shall, upon order of the city council, remove the system as required under ACC 13.36.330. (Ord. 4625 § 2, 1993.) 13.36.360 Indemnity and hold harmless. A franchisee will indemnify and hold harmless the city from any and all liabilities, fees, costs and damages, except in the case of judicially determined gross negligence and/or willful misconduct of the city, whether to person or property, or expense of any type or nature which may occur to the city by reason of the construction, operation, maintenance, repair and alteration of a franchisee’s facilities or any other actions of a franchisee in the city. In any case in which suit or action is instituted against the city by reason of damage or injury caused by a franchisee, the city shall cause written notice thereof to be given to a franchisee and a franchisee ------------------------- ORD 6798 EXHIBIT A PAGE 27 of 29    thereupon shall have the duty to appear and defend any such suit or action, without cost or expense to the city. (Ord. 4625 § 2, 1993.) 13.36.370 Insurance. A. A franchisee shall, concurrently with the filing of an acceptance of award of any franchise granted hereunder, furnish to the city and file with the city clerk, and at all times during the existence of any franchise granted hereunder maintain in full force and effect, at its own cost and expense, a general comprehensive liability insurance policy, for the purpose of protecting the city and all persons against liability for loss or damage, for personal injury, death and property damage, and errors or omissions, occasioned by the operations of a franchisee under such franchise, such policy to provide minimum limits of $1,000,000 for both personal injury and/or property damage. B. The policies mentioned in the foregoing paragraph shall name the city as additional insured and shall contain a provision that a written notice of cancellation or reduction in coverage of said policy shall be delivered to the city 30 days in advance of the effective date thereof. If such insurance is provided by a policy which also covers a franchisee or any other entity or person other than those above named, then such policy shall contain the standard cross-liability endorsement. (Ord. 4625 § 2, 1993.) 13.36.380 Performance bond. A franchisee shall promptly repair or cause to be repaired any damage to city property caused by a franchisee or any agent of a franchisee. A franchisee shall comply with all present and future ordinances and regulations regarding excavation or construction and, if deemed necessary by the city, shall be required to post a performance bond or other surety acceptable to the city in an amount specified by the city in favor of the city warranting that all restoration work will be done promptly and ------------------------- ORD 6798 EXHIBIT A PAGE 28 of 29    in a workmanlike manner and that penalties, if any, after final adjudication are paid to the city within 90 days of such finding. (Ord. 4625 § 2, 1993.) 13.36.390 Franchising costs. A franchisee shall pay to the city upon acceptance of any franchise granted hereunder the city’s out-of-pocket costs associated with the franchising process. The city shall provide the franchisee an itemization of its anticipated costs. Such payment is in addition to franchise fee payments. Payment is due within 30 days of receipt of appropriate invoice from the city. (Ord. 4625 § 2, 1993.) 13.36.400 Equalization of civic contributions. A. In the event of one or more franchises being granted pursuant to the provisions of this chapter, the city may require that such subsequential franchisees pay to the city an amount proportionally equal to franchising costs contributed by the initial franchisee. These costs may include, but are not limited to, such features as access and institutional network costs, bi-directional or equivalent cable installed to municipal buildings and similar expenses. B. On the anniversary of the grant of each later awarded franchise, such franchisees shall pay to the city an amount proportional to the amount contributed by the original franchisee, based upon the amount of subscribers held by such franchisees. C. Additional franchisees shall provide all PEG access channel(s) and the emergency override system currently available to the subscribers of existing franchisees. In order to provide these access channels, additional franchisees may interconnect, at their cost, with existing franchisees, subject to any reasonable terms and conditions that the existing franchisee providing the interconnection may require. These interconnection agreements shall be made directly between the franchisees. ------------------------- ORD 6798 EXHIBIT A PAGE 29 of 29    The city council, in such cases of dispute of award, may be called upon to arbitrate regarding these arrangements. (Ord. 4625 § 2, 1993.) 13.36.410 Inconsistency. If any portion of chapter should be inconsistent or conflict with any rule or regulation now or hereafter adopted by the FCC or other federal law, then to the extent of the inconsistency or conflict, the rule or regulation of the FCC or other federal law shall control for so long, but only for so long, as such rule, regulation, or law shall remain in effect; provided the remaining provisions of this chapter shall not be affected thereby. (Ord. 4625 § 2, 1993.) 13.36.420 Severability. Each section, subsection or other portion of chapter shall be severable and the invalidity of any section, subsection, or other portion shall not invalidate the remainder. (Ord. 4625 § 2, 1993.) ------------------------- ORD 6798 EXHIBIT B PAGE 1 of 5    ORDINANCE 6798 EXHIBIT B   Chapter 13.44 ELECTRICAL FRANCHISE [Repealed] Sections: 13.44.010 Granted. 13.44.020 Grantee defined. 13.44.030 Public highways and places – Defined – Scope. 13.44.040 Pole and cable maintenance. 13.44.050 Indemnification of city. 13.44.060 Building moving – Wire removal. 13.44.070 Acquisition of grantee’s property. 13.44.080 Franchise not exclusive. 13.44.090 Severability. 13.44.100 Written acceptance required. 13.44.010 Granted. There is granted to Puget Sound Power and Light Company, a Washington corporation, its successors and assigns, hereinafter called the grantee, for the term of 25 years beginning on the first day of January, 1977, and ending on the thirty-first day of December, 2001, the right, privilege, authority and franchise to set, erect, construct, replace, maintain and use poles and lines of poles (with or without crossarms) and all convenient appurtenances, equipment and facilities for the support thereof, or underground cables with appurtenances thereto where such underground facilities have been specially contracted for, in, upon, over, along and ------------------------- ORD 6798 EXHIBIT B PAGE 2 of 5    across the public highways and places, as hereinafter defined, in the city of Auburn, and to attach wires and cables to such poles and crossarms and stretch wires and cables from pole to pole and to the premises of patrons for the transmission, distribution and sale of electricity for power, heat, light and any other purpose or purposes for which electricity may be used, whether for municipal, domestic, manufacturing or other uses and purposes, and to charge and collect tolls, rates and compensation for such electricity, and also the right to attach to such poles and crossarms and maintain private telephone wires for the exclusive use of the grantee in connection with its electric business. (Ord. 3121 § 1, 1976.) 13.44.020 Grantee defined. The word “grantee” is used in this chapter to refer to and include not only Puget Sound Power and Light Company, the immediate grantee hereof, but also the successors and assigns of said Puget Sound Power and Light Company who may successively become the owners, of the rights granted by this chapter. (Ord. 3121 § 2, 1976.) 13.44.030 Public highways and places – Defined – Scope. The grant hereby made is intended to, and does include any, all and every of the public streets, avenues, alleys, highways, and public grounds and places in the city of Auburn as now laid out, platted and dedicated, and all public streets, avenues, alleys, highways and public grounds and places that may be hereafter laid out and dedicated within the present limits of said city or within the limits thereof as the same may hereafter be extended, all of which are included within the words “public highways and places” wherever such words are used in this chapter. (Ord. 3121 § 3, 1976.) ------------------------- ORD 6798 EXHIBIT B PAGE 3 of 5    13.44.040 Pole and cable maintenance. All poles and/or underground cables shall be constructed and maintained at such places and in such positions upon said public highways and places as shall least interfere with the free passage of traffic thereon, and in accordance with the laws of the state of Washington regulating such construction, such installations to be made under the supervision of, and with the permission of the director of public works of the city of Auburn or other assigned by the mayor or city council. Whenever it shall be necessary to make any excavation in any public highway or place for the erection, repair or substitution of any pole, underground cables or other equipment or facilities the grantee shall without delay restore the surface of said public highway or place as nearly as practicable to the same condition it was in before the doing of such work. (Ord. 3121 § 4, 1976.) 13.44.050 Indemnification of city. The grantee shall indemnify the city of Auburn for, and hold it harmless from, all damages that may result from the construction, maintenance or operation by such grantee of any of its property in said public highways or places pursuant to this franchise and shall pay all damages for which the grantee or the city of Auburn shall be held liable as the result of injuries suffered by any person, association or corporation by reason of the construction, maintenance or operation of such property; provided, that in case any claim is filed with the city of Auburn or any suit or action is instituted against said city by reason of any such damage or injury the city council shall promptly cause written notice thereof to be given to the grantee and the grantee shall have the right to defend any such suit or action. (Ord. 3121 § 5, 1976.) 13.44.060 Building moving – Wire removal. Whenever any person shall have obtained permission from the city of Auburn to use any public highway or place in said city for the purpose of moving any building the ------------------------- ORD 6798 EXHIBIT B PAGE 4 of 5    grantee, upon seven days’ written notice from the city clerk of said city, shall raise or remove, at the expense of the person desiring to move said building, any of the wires which may obstruct the removal of such building; provided, that the moving of such building shall be done in accordance with the regulations and general ordinances of the city and at such reasonable hours and in such reasonable manner as shall cause the least interference with the business of the grantee, and where more than one street is available for the moving of such building it shall be moved on such street as shall cause the least interference with the business of the grantee; and provided further, that the person moving such building shall indemnify the grantee for, and save it harmless from, any and all damages or claims therefor of whatsoever kind or nature that may be caused directly or indirectly by such temporary arrangement of the poles, wires or other property of the grantee. (Ord. 3121 § 6, 1976.) 13.44.070 Acquisition of grantee’s property. If during the term of this franchise the city of Auburn shall acquire, by purchase or condemnation any of the grantee’s property maintained or used hereunder no greater sum shall be allowed for the value of the rights herein granted, in addition to all other elements affecting the value of such purchased or condemned property, than the actual cost of obtaining this franchise. (Ord. 3121 § 7, 1976.) 13.44.080 Franchise not exclusive. This franchise is granted upon the express condition that it shall not be deemed or held to be an exclusive franchise and shall not in any manner prohibit the city of Auburn from granting other and further franchises in, upon, over, along or across any of said public highways and places. (Ord. 3121 § 8, 1976.) ------------------------- ORD 6798 EXHIBIT B PAGE 5 of 5    13.44.090 Severability. If any term, provision, condition or portion of this franchise shall be held to be invalid, such invalidity shall not affect the validity of the remaining portions of this franchise which shall continue in full force and effect. (Ord. 3121 § 9, 1976.) 13.44.100 Written acceptance required1. In order to claim any right or benefit under this franchise the grantee shall file its written acceptance of this franchise with the city clerk within 30 days after the approval hereof by the mayor and the publication of this chapter as required by law. (Ord. 3121 § 10, 1976.) 1 Puget Sound Power and Light Company executed written acceptance of this franchise November 30, 1976. ------------------------- ORD 6798 EXHIBIT C PAGE 1 of 152    ORDINANCE 6798 EXHIBIT C   Title 20 TELECOMMUNICATIONS AND OTHER COMMERCIAL UTILITIESFRANCHISES, CABLE FRANCHISES, AND LEASES Chapters: 20.02 General Provisions 20.04 Public Way AgreementsUtility and Telecommunications Franchises 20.06 Cable Franchise 20.08 Facilities Lease 20.10 Conditions of Public Way Agreements, Franchises, and Facilities LeasesRepealed 20.12 Open Video Systems Repealed 20.14 Small Wireless Facilities within the Public Rights-of-Way ------------------------- ORD 6798 EXHIBIT C PAGE 2 of 152    Chapter 20.02 GENERAL PROVISIONS Sections: 20.02.010 Purpose. 20.02.020 Definitions. 20.02.030 Business registration license required. 20.02.040 Public way agreementFranchise required. 20.02.050 Cable television fFranchise required. 20.02.060 Cable television franchiseFacilities lease required. 20.02.070 Facilities lease requiredAuthorizations necessary for Construction. 20.02.080 Construction permit required.Applications to existing franchise, cable franchise, leases, and permits and effect of other laws. 20.02.090 Application to existing franchise ordinances, agreements, leases, and permits and effect of other laws.Fees and Compensation not a tax. 20.02.100 Reserved.Taxes are not to be a credit 20.02.110 Fees and compensation not a taxAccounts, books and records. 20.02.120 Taxes are not to be a credit.Location of facilities 20.02.130 Oversized loads. 20.02.140 Care of trees along streets. 20.02.150 Use of utility poles and facilities of others. 20.02.160 Use of poles and facilities by city. 20.02.170 Interference with the public ways. 20.02.180 Leased capacity. 20.02.190 Damage to property. 20.02.200 Repair and emergency work. 20.02.210 Maintenance, abandonment, relocation, or removal of facilities. 20.02.220 Removal of unauthorized facilities. 20.02.230 Emergency removal or relocation of facilities. 20.02.240 Damage to facilities. ------------------------- ORD 6798 EXHIBIT C PAGE 3 of 152    20.02.250 Restoration of public ways, other ways, city property, and public/private utility property. 20.02.260 Facilities maps. 20.02.270 Insurance. 20.02.280 Financial security 20.02.290 Assignments or transfers of franchises, cable franchises, or leases. 20.02.300 Civil penalties. 20.02.310 Unfunded mandate. 20.02.320 Administration. 20.02.010 Purpose. The purpose and intent of this title is to: A. Establish a local policy concerning regulation of telecommunications carriers, operators, providers, cable operators, and other commercial utilities in public ways and on city and/or public property; B. Establish, consistent with applicable federal and state law, clear local guidelines, standards and time frames for the exercise of local authority with respect to the regulation of activities of telecommunications carriers, operators, providers, cable operators, and other commercial utilities in public ways and on city and/or public property; C. Promote competition in telecommunications and cable service; D. Minimize unnecessary local regulation of telecommunications carriers, operators, providers, cable operators, and other commercial utilities; E. Encourage the provision of advanced and competitive telecommunications services on the widest possible basis to the businesses, institutions and residents of the city; ------------------------- ORD 6798 EXHIBIT C PAGE 4 of 152    F. Permit and manage reasonable access to the public ways of the city for telecommunications, cable and utility purposes on a competitively neutral basis; G. Conserve the limited physical capacity of the public ways held in public trust by the city; H. Assure that the city’s current and ongoing costs of granting and regulating private access to and use of the public ways are fully paid by the persons seeking or using such access and causing such costs; I. To the extent permitted by federal and stateapplicable law, secure fair and reasonable compensation to the city and the residents of the city for permitting private use of the public ways; J. Assure that all telecommunications carriers, operators, providers, cable operators, and other commercial utilities utilizing public ways or city or public property within the city comply with the ordinances, rules and regulations of the city; K. Assure that the city can continue to fairly and responsibly protect the public health, safety and welfare; and L. Enable the city to discharge its public trust consistent with rapidly evolving federal and state regulatory policies, industry competition and technological development. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.02.020 Definitions. For the purpose of this title, and the interpretation and enforcement thereof, the following words and phrases shall have the following meanings, unless the context of the sentence in which they are used shall indicate otherwise: A. “The Act” means the Federal TelecommunicationsCommunications Act of 1934, as amended January 31, 1996. ------------------------- ORD 6798 EXHIBIT C PAGE 5 of 152    “Addressability” means the ability of a telecommunications system to allow telecommunications carriers, operators, or providers to authorize by remote control customer terminals to receive, change, or to cancel any or all specified programming. B. “Affiliate” means an entity which (directly or indirectly) owns or controls, is owned or controlled by, or is under common ownership with franchisee. For purposes of this definition, the term “own” means to own an equity interest (or the equivalent thereof) of more than 10 percent. C. “Applicable Law” means any statute, ordinance, judicial decision, executive order or regulation having the force and effect of law that determines the legal standing of a case or issue. D. “Applicant” means any person or entity that applies for any public way agreement, franchise, cable franchise, lease, or permit pursuant to this title. “Cable facilities” means equipment and wiring used to transmit audio and video signals to subscribers. E. “Cable operator” means any person or group of persons (A) who provides cable service over a cable system and directly or through one or more affiliates owns a significant interest in such cable system, or (B) who otherwise controls or is responsible for, through any arrangement, the management and operation of such a cable system.a telecommunications carrier providing or offering to provide “cable service” within the city as that term is defined in the Cable Act and Chapter 13.36 ACC. F. “Cable service” means (A) the one-way transmission to subscribers of (i) video programing, or (ii) other programing service, and (B) subscriber interaction, if any, which is required for the selection or use of such video programming of other programming service.for the purpose of this title shall have the same meaning provided by the Cable Act and Chapter 13.36 ACC. G. “Cable system” means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed ------------------------- ORD 6798 EXHIBIT C PAGE 6 of 152    to provide cable service and other service to subscribers.which includes video programing and which is provided to multiple subscribers within a community, but such term does not include: 1. A facility that serves only to retransmit the television signals of one(1) or more television broadcast stations; 2. A facility that serves subscribers without using any public way; 3 A facility of a common carrier which is subject, in whole or in part, to the provisions of Title II of the Federal Communications Act (47 U.S.C. 201 et seq.), except that such facility shall be considered a cable system (other than for purposes of Section 621(c)(47 U.S.C. 541(c)) to the extent such facility is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on-demand services; 4. An open video system that complies with federal statutes; or 5. Any facilities of any electric utility used solely for operating its electric utility system; H. “Carrier” means any provider of telecommunications services, except that this term does not include aggregators of telecommunications services as defined in Section 225 of the Act. (See also “Telecommunications carrier.”) I “City” means the city of Auburn, Washington as defined in ACC 1.04.010 to include all future areas annexed into the city. J. “City property” means and includes all real property owned by the city, other than public ways and utility easements as those terms are defined herein, and all property held in a proprietary capacity by the city, which are not subject to public way agreements and franchising as provided in this title. “Commercial utility provider” means any natural gas, electric power, pipeline, or other company desiring to utilize city public ways for transporting, purveying, or ------------------------- ORD 6798 EXHIBIT C PAGE 7 of 152    delivering bulk products, or providing commercial power or gas services within the city, or needing to transport bulk product or services through the city to other destinations for commercial purposes. K. “Council” means the city council of the city of Auburn, Washington acting in its official capacity constituting the legislative body of the city. “Data communication” means (1) the transmission of encoded information or (2) the transmission of data from one point to another. “Dwelling units” means residential living facilities as distinguished from temporary lodging facilities such as hospitals, hotel and motel rooms and dormitories, and includes single-family residential units and individual apartments, condominium units, mobile homes, extended care facilities and other multiple-family residential units. L. “Emergency” means a condition of imminent danger to the health, safety, and welfare of property or persons located within the city including, without limitation, damage to persons or property from natural consequences, such as storms, earthquakes, riots or wars. M. “Excess capacity” means the volume or capacity in any existing or future duct, conduit, manhole, handhole or other utility facility within the public way that is or will be available for use for additional telecommunications, cable, or utility facilities. N. “FCC” or “Federal Communications Commission” means the federal administrative agency, or lawful successor, authorized to regulate and oversee cable and telecommunications carriers, services and providers on a national level. “Fiber optics” means the technology of guiding and projecting light for use as a communications medium. O. “Franchise” shall mean the initial authorization, or renewal thereof, approved by an ordinance of the city, which authorizes the franchisee to construct, install, operate, or maintain telecommunications, cable or other commercial utility facilities in, under, ------------------------- ORD 6798 EXHIBIT C PAGE 8 of 152    over, or across public ways of the city and to also provide service to persons or areas in the city. P. “Franchise area” means all areas within the current city limits and within any future adjusted boundaries of the city limits. The effective date of any such changes in the city limits will be the effective date(s) of any future annexations. Q. “Franchisee” means a person, as defined herein, firm or corporation to whom or which a franchise, as defined in this section, is granted by the council under this title and the lawful successor, transferee or assignee of said person, firm or corporation subject to such conditions as may be defined in the franchise and in this title. “Grantee” means a holder of a public way agreement, franchise, or lease approved by the city council of the city of Auburn. R. “Gross revenue” shall mean a cable operator’s gross revenues derived from the operation of the cable system to provide cable services. Gross revenues for the purposed of calculating franchise fees shall be as set forth in any franchise agreement.all receipts accrued in a franchisee’s books for all commercial utility, communications and communications-related operations and services from subscribers, who have a service address within the corporate limits of the city of Auburn, to franchisee’s business as well as any other revenue arising from operation or possession of a franchise agreement with the city of Auburn, less the application and administrative fees mandated in the franchise agreement and the franchise fee intended for compensation for use of “public ways.” By way of example, but without limitation, “gross revenue” includes all revenues from the sale or lease of equipment, installation charges to subscribers who have service addresses within the corporate limits of the city, charges to customers, subscribers and other users of the telecommunications system who have service addresses within the corporate limits of the city. “Gross revenues” does not include: (a) taxes, fees, or assessments of any kind or description imposed on or levied against franchisee which are not applicable to all other persons or entities doing business within the city, (b) revenues noncollectible from customers (bad debts) which have been written off through ------------------------- ORD 6798 EXHIBIT C PAGE 9 of 152    generally accepted accounting practices, (c) discounts, and (d) any applicable exclusions under the law. S. “Lessee” means the holder of a lease for use of city or public property which has been approved by the city council of the city of Auburn. T. “Other ways” means the highways, streets, alleys, utility easements or other rights-of-way within the city, but under the jurisdiction and control of a governmental entity other than the city. U. “Overhead facilities” means utility poles, utility facilities and telecommunications, cable, or other commercial utility facilities located above the surface of the ground, including the underground supports and foundations for such facilities. “OVS” means open video system which is a telecommunications system having two- thirds of its capacity set aside for use by other providers, programmers, or competitive business on a subleasing basis. Because of its self-competitive nature, an OVS is subject to regulatory restrictions. V. “Person” means and includes corporations, companies, associations, joint stock companies or associations, firms, partnerships, limited liability companies and individuals and includes their lessors, trustees and receivers. “Property of franchisee” means all plant, or facilities owned, installed or used by a franchisee in the conduct of its business in the city under the authority of a franchise granted pursuant to this title. W. “Proposal” means an application by any person or entity that applies for any public way agreement, franchise, cable franchise lease, or permit pursuant to this title. X. “Public place” means an area generally open to public access including all public ways, parks, plazas, publicly owned buildings, theaters, and entrances or doorways to places of business that front on a public way. ------------------------- ORD 6798 EXHIBIT C PAGE 10 of 152    Y. “Public street” means any highway, street, alley or other public right-of-way for motor vehicle travel under the jurisdiction and control of the city which has been acquired, established, dedicated or devoted to highway purposes.the movement of motorized and non-motorized traffic, including city streets as part of state highways under Chapter 47.24 RCW. Z. “Public way(s)” shall mean the surface, the air space above the surface, and the space below the surface of any public street, including, but not limited to, any public alley, bridge, land path, trail, court, circle, roundabout, boulevard, drive, tracts, right- of-way or sidewalk under the jurisdiction of the city as is now, or in the future, laid out, improved or unimproved within the limits of the city presently and as such limits may be hereafter extended. AA. “State” means the state of Washington. BB. “Subscriber” or “customer” means a person or user of the commercial utility, or telecommunications, or cable system who lawfully receives commercial utility, or telecommunications, or cable services, or other service therefrom, with franchisee’s express permission. CC. “Substantial change” for purposes of this chapter means a modification that substantially changes the physical dimensions of an eligible support structure located in the public way if, after the modification, the structure meets any of the following criteria: 1. It increases the height of the structure by more than ten percent or more than ten feet, whichever is greater; 2. It involves adding an appurtenance to the body of the structure that would protrude from the edge of the structure by more than six feet; 3. It involves installation of more than the standard number of new equipment cabinets for the technology involved, but not to exceed four cabinets; or, for wireless communication towers in the public way and base stations, it involves installation of any new equipment cabinets on the ground if there are no ------------------------- ORD 6798 EXHIBIT C PAGE 11 of 152    preexisting ground cabinets associated with the structure, or else involves installation of ground cabinets that are more than ten percent larger in height or overall volume than any other ground cabinets associated with the structure; 4. It entails any excavation or deployment outside the current site as that term is defined in 47 CFR §1.6100; 5. It would defeat the concealment elements of the eligible support structure; or 6. It does not comply with conditions associated with the original approval of the construction or modification of the eligible support structure or base station equipment, unless noncompliance is only in a manner that would exceed the thresholds identified in subsections (1) through (4) of this definition. For purposes of determining whether a substantial change exists, changes in height are measured from the original support structure as it existed at the time the first EFR request was approved for that structure in cases where facilities are or will be separated horizontally, in other circumstances, changes in height are measured from the dimensions of the wireless communication tower or base station, inclusive of originally approved appurtenances and any modifications that were approved prior to February 22, 2012. DD. “Surplus space” means that portion of the usable space on a utility pole which has the necessary clearance from other pole users, as required by federal or stateapplicable law, orders, and regulations, to allow its use by a utility, cable, or telecommunications carrier for a pole attachment. EE. “Telecommunications carrier” means and includes every person that directly or indirectly owns, controls, operates or manages plant, equipment or facilities within the city’s public ways, for the purpose of offering telecommunications services within the city. (See also “Carrier.”) FF. “Telecommunications facilities or system” means the definition contained in ACC 5.84.020 with the exception of real estate, easements, and property.plant, equipment and facilities, including but not limited to, cables, wires, conduits, ducts, ------------------------- ORD 6798 EXHIBIT C PAGE 12 of 152    pedestals, antennae, electronics and other appurtenances used or to be used to transmit, receive, distribute, provide or offer telecommunications services. GG. “Telecommunications operator” means and includes every person who provides telecommunications services within the city over telecommunications facilities located within the city’s public ways, without any ownership, management or control of the facilities. HH. “Telecommunications provider” means and includes every person who utilizes facilities within the city’s public ways to provide services outside the city only. II. “Telecommunications service” means the transmission of information by wire, radio, optical cable, electromagnetic, or other similar means for hire, sale, or resale to the general public. For the purpose of this subsection, “information” means knowledge or intelligence represented by any form of writing, signs, signals, pictures, sounds, or any other symbols. For the purpose of this Chapter, telecommunications service excludes the over-the-air transmission of broadcast television or broadcast radio signals.providing or offering for rent, sale or lease, or in exchange for other value received, of the transmittal of voice, data, image, graphic and video programming information between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or similar facilities, with or without benefit of any closed transmission medium. “Telecommunications system,” see “Telecommunications facilities.” JJ. “Underground facilities” means utility, and telecommunications, and cable facilities located under the surface of the ground, excluding the underground foundations or supports for overhead facilities. KK. “Usable space” means the total distance between the top of a utility pole and the lowest possible attachment point that provides the minimum allowable vertical clearance as specified in any federal or state orders and regulations. ------------------------- ORD 6798 EXHIBIT C PAGE 13 of 152    LL. “Utility easement” means any easement in which the city holds an interest in or an interest has been acquired, established, dedicated or devoted for city utility purposes. MM. “Utility facilities” means the plant, equipment and property, including but not limited to the poles, pipes, mains, conduits, ducts, cables, wires, plant and equipment located under, on or above the surface of the ground within the public ways of the city and used or to be used for the purpose of providing utility or telecommunications services. NN. “Utility provider” means any natural gas, electric power, pipeline, water or sewer not owned or operated by the City of Auburn, or other company desiring to utilize the public ways for transporting, purveying, or delivering bulk products, or providing power or gas services within the city, or needing to transport bulk product or services through the city to other destinations for commercial purposes. OO. “WUTC” means the Washington State Utility and Transportation Commission. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.02.030 Business registration license required. Except as otherwise provided herein, all commercial utilityies, cable operators, telecommunications carriers, operators and providers engaged in the business of transmitting, supplying or furnishing of commercial utility, cable or telecommunications service of any kind originating or terminating in the city, or utilizing facilities within the city’s public ways to provide services exclusively outside of the city only, shall apply for and obtain a business registration license from the city pursuant to Chapter 5.84 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 14 of 152    20.02.040 Public way agreement required. Except as otherwise provided herein, any commercial utility or telecommunications provider who desires to construct, install, operate, maintain, or otherwise locate facilities in, under, over or across any public way of the city for the sole purpose of providing service to persons and areas outside the city shall first obtain a public way agreement granting the use of such public ways from the city pursuant to Chapter 20.04 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.02.05020.02.040 Franchise required. Except as otherwise provided herein, any commercial utility, telecommunications carrier or operator who desires to construct, install, operate, maintain or otherwise locate facilities in, under, over or across any public way of the city, and to also provide service to persons or areas inside the city or outside of the city, shall first obtain a franchise granting the use of such public ways from the city pursuant to Chapter 20.0620.04 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.02.06020.02.050 Cable television franchise required. Except as otherwise provided herein, any telecommunications carrier or other person who desires to construct, install, operate, maintain or locate cable or telecommunications facilities in any public way in the city for the purpose of providing cable service to persons in the city shall first obtain a cable franchise from the city pursuant to Chapter 13.3620.06 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.02.07020.02.060 Facilities lease required. No commercial utility, cable, telecommunications carrier, or other entity who desires to locate facilities or other equipment on city property shall locate such facilities or equipment on city property that are not public ways unless granted a facilities lease ------------------------- ORD 6798 EXHIBIT C PAGE 15 of 152    from the city pursuant to Chapter 20.08 ACC. The city council reserves unto itself the sole discretion to lease such city property for utility, cable, telecommunications, and other facilities, and no vested or other right shall be created by this section or any provision of this title applicable to such facilities leases. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.02.08020.02.070 Authorizations necessary for Construction permit required. Except as otherwise provided herein, the holder of a public way agreement, franchise, cable franchise or lease granted pursuant to this title, and the holders of cable franchises granted pursuant to Chapter 13.36 ACC, shall, in addition to said public way agreement, franchise, cable franchise, or lease, be required to obtain all applicable construction permits from the city pursuant to Chapter 12.24 ACC, Chapter 20.14 ACC and Title 18 ACC. No work, construction, development, excavation, substantial change, or installation of any equipment or facilities shall take place within the public ways or upon city property until such time as the construction appropriate permits areis issued or lease terms are met. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.02.09020.02.080 Application to existing franchise, cable franchise, ordinances, agreements, leases, and permits and effect of other laws. All grantees, franchisees, and lessees subject to this title are at all times subject to and must comply with all applicable existing and future federal, state and local laws, ordinances, codes, rules, regulations and orders. A. In accepting and executing any franchise, cable franchise, or lease, the franchisee, or lessee acknowledges that its rights thereunder are subject to the legitimate rights of the police power of the city to adopt and enforce general ordinance, rules, and/or regulations necessary to protect the safety, health, and welfare of the public, subject to applicable law. A franchisee and/or lessee shall ------------------------- ORD 6798 EXHIBIT C PAGE 16 of 152    comply with all applicable general laws, rules, and/or regulations enacted by the city pursuant to such power.This title shall have no effect on agreements in effect prior to adoption, unless otherwise provided, in any existing franchise ordinance, franchise agreement, lease, permit, agreement or other authorization to use or occupy a public way in the city until: 1. The expiration of said franchise ordinance, agreement, lease, permit, or authorization; or 2. The amendment to an unexpired franchise ordinance, franchise agreement, lease, permit, authorization, or agreement unless both parties agree to defer full compliance to a specific date not later than the expiration date provided therein. B. Nothing in this title shall be deemed to create an obligation upon any person for which the city is forbidden to require pursuant to federal, state, or otherapplicable law. C. Upon expiration of the electrical and natural gas franchises in effect at time of adoption of this title, granted by Chapter 13.44 ACC, the franchise shall be renegotiated under the terms of this title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.02.100 Reserved. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.02.11020.02.090 Fees and compensation not a tax. The fees, charges and fines provided for in this title and any compensation charged and paid as provided herein, whether fiduciary or in-kind, are separate from, and additional to, any and all federal, state, local, and city taxes as may be levied, imposed or due from a commercial utility, cable, or telecommunications carrier, ------------------------- ORD 6798 EXHIBIT C PAGE 17 of 152    operator, or provider, its customers or subscribers or on account of the lease, sale, delivery or transmission of utility, cable, or telecommunications services. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.02.12020.02.100 Taxes are not to be a credit. Any compensation paid as provided for in public way agreements, any franchises, cable franchises, and/or facility leases shall be exclusive of and in addition to all special assessments and taxes of whatever nature which are applicable to all other persons or entities doing business within the city, including, but not limited to, ad valorem taxes, sales taxes, corporate or business occupation taxes or other taxes or fees imposed or levied by any governmental entity. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.19020.02.110 Accounts, books and records. The franchisee shall keep the city fully informed as to accounting methods and procedures in connection with the recording and reporting by the franchisee of all revenues and uncollectibles. A. City to Be Informed. Franchisees shall keep the city fully informed as to all matters in connection with or which may affect the construction, reconstruction, removal, maintenance, operation and repair of franchisee’s system located in public way(s), franchisee’s accounting methods and procedures in connection therewith, and the recording and reporting by franchisees of all revenues and uncollectibles. Franchisees shall comply with the city’s determination regarding forms for reports, the time for reports, the frequency with which any reports are to be made, and whether reports are to be made under oath. The city acknowledges that a franchisee may be a reporting company under the Securities Exchange Act of 1934 and that shares of its stock are publicly traded. As such, a franchisee may be precluded from ------------------------- ORD 6798 EXHIBIT C PAGE 18 of 152    disclosing certain sensitive, nonpublic information by virtue of rules and regulations promulgated under such act or otherwise. B. Accounts. The franchisee shall keep complete and accurate books of account and records of its business and operations subject to this franchise chapter in accordance with generally accepted accounting principles or in accordance with accounting rules prescribed by applicable federal or state regulatory agencies. The city may require the keeping of additional records or accounts which are reasonably necessary for purposes of identifying, accounting for, and reporting gross revenues and uncollectibles. All subscribers who report a service address in the city of Auburn shall be subject to taxes and fees under this franchise. When required by the city, the franchisee shall make available a complete list of all service addresses within the city of Auburn. This list shall be available for review by the city at a local franchisee’s business office. The list will be provided on a computer disc in ASCII format sorted by zip codein a format acceptable to the city. It is understood this data is only needed for Auburn to perform an audit to ascertain that the correct subscribers are subjected to Auburn taxes and fees. As the city annexes new areas, those zip codes, if any, will be added. C. Access to Records. The franchisee shall provide the city with access at reasonable times and for reasonable purposes, to examine, audit, review and/or obtain copies of the papers, books, accounts, documents, maps, plans and other records of the franchisee pertaining to this franchise chapter. The franchisee shall fully cooperate in making available its records and otherwise assisting in these activities. Such information shall be held in strict confidence by the city, as allowed by law, and used only for the purpose stated herein. D. Inquiries to Franchisee. The city may, at any time, make inquiries pertaining to the franchisee’s operation of its utility, cable, or telecommunications system within the franchise area. The franchisee shall respond to such inquiries on a timely basis. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 19 of 152    20.10.05020.02.120 Location of facilities. All facilities shall be constructed, installed, and located in accordance with the following terms and conditions, unless otherwise specified in a public way agreement, franchise, or lease agreement. A. Unless otherwise provided in a public way agreement, franchise, or lease, a grantee, franchisee, or lessee with permission to occupy a public way or public property must locate its utility, cable, or telecommunications facilities underground in accordance with ACC Title 18 and Chapter 13.32A ACC. B. Any newcomer in the public way must bear the full cost of discovering the location of any existing conflicts, coordination of the engineering plans to acquire the approvals of parties already in the public way, and relocating and/or mitigating such conflicts with preexisting facilities in conflict with the plans of the newcomer. C. Whenever the city requires, a grantee, franchisee, or lessee subject to this title, and that currently occupies the public way shall relocate its facilities underground at no expense to the city. Such relocation shall be made concurrently with other planned work to minimize the disruption of the public ways as determined by the city engineer. D. Should the available capacity of public ways prevent new uses in the future, all persons subject to this title shall negotiate with any interested newcomer the means of creating new capacity as required by federal or stateapplicable law. The parties shall arrive at a mutually supportable agreement and submit the same to the city for review and comment. The parties will incorporate any reasonable city requirements for approval, and resubmit the revised proposal for city council approval. If approved by the city council, the parties will bear all costs associated with the proposal, and obtain the necessary permits to execute the approved plan from the city in accordance with this title and Chapter 12.24 ACC. The city shall bear no costs associated with resolution of capacity shortages within the public ways. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 20 of 152    20.10.14020.02.130 Building movingOversized loads. Whenever any person shall have obtained permission from the city to use any street or public way for the purpose of moving any buildingoversized loads, a grantee, franchisee, or lessee, upon seven calendar days’ written notice from the cityperson with a permit to move the oversized loads, shall raise or remove, at the expense of the person desiring to move the buildingoversized load, any of the grantee, franchisee, or lessee’s utility wires, poles, or facilities which may obstruct the moving of such buildingoversized load; provided, that the person desiring to move the buildingoversized load shall comply with all requirements of the city for the moving of buildingsoversized loads. Where more than one street is available for the moving of such oversized load, the oversized load shall be moved on such streets as shall cause the least interference, In such event, the city shall be responsible for determining the path of least interference. It is further provided that the person or persons moving such oversized load shall indemnify and save harmless said franchisee or lessee and the city from any and all damages or claims of any kind or nature caused directly or indirectly for such temporary arrangement of the lines and poles of a franchisee or lessee (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.45020.02.140 Care of trees along streets. Upon prior written approval of the city and in accordance with city ordinances, any grantee, franchisee, or lessee shall have the authority to trim trees upon and overhanging streets, public ways and places in the franchise area so as to prevent the branches of such trees from coming in physical contact with the facilities of the respective grantee, franchisee, or lessee. The grantee, franchisee, or lessee shall be responsible for debris removal from such activities. If such debris is not removed within 24 hours, the city may, at its sole discretion, remove such debris and charge the grantee, franchisee, or lessee for the cost thereof. This section does not, in any instance, grant automatic authority to clear vegetation for purposes of providing a clear path for radio signals. Any such general vegetation clearing will require a city ------------------------- ORD 6798 EXHIBIT C PAGE 21 of 152    land clearing permitother permits as necessary from the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.46020.02.150 Use of utility poles and facilities of others. Grantees and fFranchisees may seek to contract with the city or any appropriate board or agency thereof or with the holder or owner of any utility franchise in the city for the use, rental or lease of its or their poles and other structures and facilities for the purpose of extending, carrying or laying utility, cable, or telecommunications facilities, electronic conductors and other facilities and appurtenances necessary or desirable in conjunction with the operation of its utility, cable, or telecommunications system. The city agrees that any public utility owning or controlling such poles or other structures or facilities may, without amendment to its franchise, allow, and is encouraged to allow, grantees and franchisees to make such use thereof pursuant to any agreement reached between the affected parties. City-owned poles are limited to street light and traffic signal poles which generally are not intended for use by others. The city reserves the right to determine on a case-by-case basis that particular circumstances require that a certain city-owned pole is not appropriate for use. No grantee or franchisee will utilize any city-owned poles prior to approval by the city engineer. Unless otherwise limited by applicable law, Aany compensation for uses of city-owned poles will be based upon the prevailing market rates for similar uses in the region. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.47020.02.160 Use of poles and facilities by city. With respect to poles and trenches which are facilities and which are (1) wholly owned by a franchisee or grantee, and (2) within the franchise area, the city, subject to franchisee’s or grantee’s prior written consent, may install and maintain city-owned overhead facilities upon such poles, and conduits in open trenches, for police, fire, illumination, and other noncommercial communications purposes, subject to the following: ------------------------- ORD 6798 EXHIBIT C PAGE 22 of 152    A. Such installation and maintenance shall be completed at the city’s expense; B. The franchisee or grantee shall have no obligation under the indemnification provisions of this franchise or public way agreement for the installation or maintenance of such city-owned facilities or conduits; C. Nothing herein shall require the franchisee or grantee to bear any cost or expense in connection with such installation and maintenance of city-owned facilities or conduits, nor shall such city installation delay or adversely eaffect franchisee’s or grantee’s construction schedule; D. In no case shall the city attach to or come into contact with grantee’s or franchisee’s equipment. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.08020.02.170 Interference with the public ways. No grantee, franchisee, or lessee may locate or maintain its utility, cable or telecommunications facilities so as to unreasonably interfere with the use of the public ways by the city, by the general public or by other persons authorized to use or be present in or upon the public ways and public property. All such facilities which unreasonably interfere with the use of the city’s public ways as determined by the public works director, shall be moved in accordance with provisions in ACC 20.10.13020.02.210, by the grantee, franchisee, or lessee, at the grantee, franchisee, or lessee’s cost, temporarily or permanently, as determined by the public works director. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.21020.02.180 Leased capacity. A grantee, franchisee, or lessee shall have the right to offer or provide sublease capacity, or bandwidth, or other facilities to its customers consistent with such permit, franchise, or lease; provided: ------------------------- ORD 6798 EXHIBIT C PAGE 23 of 152    A. The sub-lessee first obtains a franchise, cable franchise, lease, or such applicable agreement with the City of Auburn in conformance with this Title 20 ACC; The grantee, franchisee, or lessee shall furnish the city with a copy of any such lease or agreement between the grantee, franchisee, or lessee and the customer or sub- lessee or provide to the city’s finance director sufficient information to determine whether the lessee or customer is subject to city taxes or assessments; and B. The sub-lessee fulfills all requirements of Chapters 3.84 and 3.88 ACC regarding the reporting of all revenues subject to city taxes and assessments; and C. The sub-Llessee must comply with the city’s registration requirements in Chapter 5.84 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.09020.02.190 Damage to property. No grantee, franchisee, or lessee, nor any person acting on behalf of a grantee, franchisee, or lessee shall take any action or permit any action to be taken which may impair or damage any city property, public ways of the city, other ways or other property, whether publicly or privately owned, located in, on or adjacent thereto. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.11020.02.200 Repair and emergency work. In the event of an emergency, a grantee, franchisee, or lessee may commence such repair and emergency response work as required under the circumstances, provided the grantee, franchisee, or lessee shall notify the city in writing as promptly as possible, before such repair or emergency work commences or as soon thereafter as possible if advance notice is not practicable. The city may act without prior written notice in case of emergency. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 24 of 152    20.10.12020.02.210 Maintenance, abandonment, relocations or removal of facilities. Each grantee, franchisee, or lessee shall maintain its facilities in good and safe condition and in a manner that complies with all applicable federal, state and local requirementsApplicable Law. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.130 Abandonment, relocation or removal of facilities. Within 30 days or such other time frame as determined by the city, and in accordance with RCW 35.99.060, following written notice from the city, a grantee, franchisee, or lessee shall, at its sole expense, temporarily or permanently remove, relocate, change, or alter the position of any commercialof its utility, cable or telecommunications facilities within the public ways or upon city property whenever the city public works director shall have determined that such removal, relocation, change, or alteration is reasonably necessary for: A. The construction, repair, maintenance, or installation of any city or other public improvement in or upon the public ways; and B. The operations of the city, utility providers, or other governmental entity in or upon the public ways; and C. Facilities are deemed by the city as abandoned due to failure to cure of the grantee, franchisee, or lessee. However, in the event such relocation is required due to emergency repairs deemed necessary by the city, such relocation or moving shall be accomplished within 24 hours. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.15020.02.220 Removal of unauthorized facilities. Within 30 days following written notice from the city, any commercial utility, cable, telecommunications carrier, operator, lessee or other person who owns, controls, or maintains any unauthorized cable or telecommunications system, facility, or related ------------------------- ORD 6798 EXHIBIT C PAGE 25 of 152    appurtenances within the public ways or upon property of the city shall, at its own expense, remove such system, facilities, or appurtenances from the public ways of the cityor property of the city. A utility, cable or telecommunications system or facility is unauthorized and subject to removal in the following circumstances: A. Upon expiration or termination of the grantee, lessee, or franchisee’s public way agreement, franchise, or lease; B. Upon leaving any system or facility within the public ways or upon property of the city, any such property of a grantee, franchisee, or lessee shall be deemed abandoned if left in place 90 days after expiration or termination of a public way agreement, franchise, or lease; C. If the system or facility was constructed or installed without the prior approval of a public way agreement, franchise or lease; D. If the system or facility was constructed or installed without the prior issuance of a required construction permit; or E. If the system or facility was constructed or installed at a location not permitted by a public way agreement, franchise or lease. Provided, however, that the city may, in its sole discretion, allow a grantee, franchisee, or lessee or other such persons who may own, control, use, or maintain commercial utility, cable or telecommunications facilities within the public ways of the city or upon city property to abandon such facilities in place. No facilities of any type may be abandoned in place without the express written consent of the city. Any plan for abandonment or removal of a grantee’s, franchisee’s, or lessee’s facilities must be first approved by the public works director, and all necessary permits must be obtained prior to such work. If the city, in its sole discretion, permits abandonment of facilities in place, Uupon permanent abandonment in place of the facilities such facilities shallmay, at the city’s discretion become the city’s property, and such persons shall submit to the city an instrument in writing, to be approved by the city attorney, transferring to the city the ownership of such property. The provisions of this ------------------------- ORD 6798 EXHIBIT C PAGE 26 of 152    section shall survive the expiration, revocation, or termination of a public way agreement, franchise, or lease granted under this title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.16020.02.230 Emergency removal or relocation of facilities. The city retains the right and privilege to cut or move any commercial utility, cable or telecommunications facilities located within the public ways of the city and upon city property, as the city may determine to be necessary, appropriate or useful in response to any public health or safety emergency. The city shall not be liable to any utility, cable operator, telecommunications carrier, operator, or provider, or any other party 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. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.17020.02.240 Damage to facilities. Unless directly and proximately caused by the willful, intentional, or malicious acts by the city, the city shall not be liable for any damage to or loss of any commercial utility, cable, or telecommunications facilities upon city property or within the public ways of the city as a result of or in connection with any public works, public improvements, construction, excavation, grading, filling, or work of any kind on such city property or within the public ways by or on behalf of the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.18020.02.250 Restoration of public ways, other ways, city property and public/private utility property. A. When a grantee, franchisee, lessee, or any person acting on behalf such persons, does any work in or affecting any public ways, other ways, city property, or ------------------------- ORD 6798 EXHIBIT C PAGE 27 of 152    public/private utilities located in the public ways, it shall, at its own expense, promptly remove any obstructions therefrom and restore such ways or property to as good a condition as existed before the work was undertaken, unless otherwise directed by the city. B. If weather or other conditions do not permit the complete restoration required by this section, or other city codes, regulations or policies, the grantee, franchisee, or lessee shall temporarily restore the affected public ways, other ways, or property. Such temporary restoration shall be at the grantee’s, franchisee’s, or lessee’s sole expense and the grantee, franchisee, or lessee shall promptly undertake and complete the required permanent restoration when the weather or other conditions no longer prevent such permanent restoration. C. A grantee, franchisee, lessee or other person acting on behalf of such persons shall use suitable barricades, flags, flagmen, lights, flares, and other measures as required for the safety of all members of the general public and to prevent injury or damage to any person, vehicle, or property by reason of such work in or affecting such public ways, other ways, or property. D. The public works director or designee shall be responsible for inspection and final approval of the condition of the public ways, other ways, and city property following any construction and restoration activities therein. Further, the provisions of this section shall survive the expiration, revocation, or termination of a public way agreement, franchise, or lease, or other agreement granted pursuant to this title or Chapter 12.24 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.19020.02.260 Facilities maps. Each grantee, franchisee, and lessee shall provide the city with a map or maps accurately reflecting the horizontal and vertical location and configuration of all of their commercial utility, cable, or telecommunications facilities within the public ways and upon city property. Each grantee, franchisee, and lessee shall provide the city ------------------------- ORD 6798 EXHIBIT C PAGE 28 of 152    with updated maps annually or upon written request by the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.22020.02.270 Insurance. Unless otherwise provided in a public way agreement, franchise, cable franchise, or lease agreement, each grantee, franchisee, or lessee shall, as a condition of the permit or public way agreements, franchises, or leases, secure, and maintain at a minimum the following liability insurance policies insuring both the grantee, franchisee, or lessee and the city, and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volunteers as additional insureds against claims for injuries to persons or damages to property which may arise from or in connection with the exercise of the rights, privileges, and authority granted to the grantee, franchisee, or lessee: A. Comprehensive general liability insurance, written on an occurrence basis, with limits not less than: 1. Five million dollars for bodily injury or death to each person; 2. Five million dollars for property damage resulting from any one accident; and 3. Five million dollars for all other types of liability; B. Automobile liability for owned, non-owned and hired vehicles with a limit of $3,000,000 for each person and $3,000,000 for each accident; C. Worker’s compensation within statutory limits and employer’s liability insurance with limits of not less than $1,000,000; D. Comprehensive form premises-operations, explosions and collapse hazard, underground hazard and products completed hazard with limits of not less than $3,000,000; ------------------------- ORD 6798 EXHIBIT C PAGE 29 of 152    E. The liability insurance policies required by this section shall be maintained by the grantee, franchisee, or lessee throughout the term of the public way agreement, franchise, or lease, and such other period of time during which the grantee, franchisee, or lessee is operating without a public way agreement, franchise, or lease hereunder, or is engaged in the removal of its telecommunications facilities. The grantee, franchisee, or lessee shall provide an insurance certificate, together with an endorsement naming the city, and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volunteers as additional insureds, to the city prior to the commencement of any work or installation of any utility or telecommunications facilities pursuant to said public way agreement, franchise, or lease. Any deductibles or self-insured retentions must be declared to and approved in writing by the city prior to the franchise becoming effective. Payment of deductibles and self-insured retentions shall be the sole responsibility of the grantee, franchisee, or lessee. The insurance certificate required by this section shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. The grantee, franchisee, or lessee’s insurance shall be primary insurance as respects the city, its officers, officials, employees, agents, consultants, and volunteers. Any insurance maintained by the city, its officers, officials, employees, consultants, agents, and volunteers shall be in excess of the grantee, franchisee, or lessee’s insurance and shall not contribute with it; F. In addition to the coverage requirements set forth in this section, each such insurance policy shall contain the following endorsement: It is hereby understood and agreed that this policy may not be canceled nor the intention not to renew be stated until 60 days after receipt by the City, by registered mail, (return receipt requested) of a written notice addressed to the City Clerk of such intent to cancel or not to renew. G. Within 30 days after receipt by the city of said notice, and in no event later than 15 days prior to said cancellation or intent not to renew, the grantee, franchisee, or ------------------------- ORD 6798 EXHIBIT C PAGE 30 of 152    lessee shall obtain and furnish to the city replacement insurance policies meeting the requirements of this section. Any lapse in the required insurance coverage shall be cause for termination of any public way agreement, franchise, or lease. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.24020.02.280 Performance and construction suretyFinancial Security. Before a public way agreement, franchise, or cable franchiselease granted pursuant to this title is effective, and as necessary thereafter, the grantee, franchisee, or lessee shall provide and deposit such moneys, bonds, letters of credit, or other instruments in form and substance acceptable to the city as may be required by this title or by an applicable public way agreement, franchise, or lease agreement. All performance bondsfinancial securities for grantees, franchisees, and lessees shall satisfy the minimum standards established by the public works departmentEngineering Design and Construction Standards at the time of the grantees’, franchisees’ acceptance, and lessees’ application. (Construction bond section(s) of Standard Specifications for Road, Bridge, and Municipal Construction for Washington State Department of Transportation and American Public Works Association). Construction bonds sureties shall be provided as required by Washington State laws. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.250 Security options. A. In order to secure the conditions agreed to in any franchise or cable franchise agreement negotiated under this title, for the full term of such agreements, each grantee, franchisee, or lessee shall establish a permanent financial security in the form of a bond, assignment of funds, or an unconditional letter of credit from a Washington State bank with the city by either providing the city engineer a standing warranty bond or by depositing the amount of funds as follows in a Washington state ------------------------- ORD 6798 EXHIBIT C PAGE 31 of 152    bank utilizing the city’s standard assignment form, or by provision of the letter of credit. The amount of the financial security shall be 10 percent of the city engineer’s estimate of the performance bond amount (ACC 20.10.260) based upon the total scope of work proposed within the public ways, or a minimum of $50,000, or such other whichever is less, or such lesser amount as determined by the public works director to be sufficient. The financial security shall be maintained at the sole expense of the grantee, franchisee, or lessee so long as any of the grantee, franchisee’s, or lessee’s utility, cable or telecommunications facilities are located within the public ways, or the franchisee provides services from facilities located in the public ways, of the city or upon city property and until released by the city. In the event a financial security involves a bank, the grantee, franchisee, or lessee is responsible for negotiating any interest that may accrue to the account during the duration of effect. Should the franchise or cable franchise agreement being secured be terminated, the financepublic works director will coordinate with other departments and determine if any portion of the security may be released by the city. AB. The security shall secure the full and complete performance of the requirements of this title, including any costs, expenses, damages, or loss the city pays or incurs, including civil penalties, because of any failure attributable to the grantee, franchisee, or lessee to comply with any applicable legal requirements including, but not limited to, the codes, ordinances, rules, regulations, or permits of the city. BC. Before the city executes on the financial security bond or any sums are withdrawn from the financial security fund, the city shall give written notice to the grantee, franchisee, or lessee: 1. Describing the act, default or failure to be remedied, or the damages, costs or expenses which the city has incurred by reason of grantee, franchisee’s, or lessee’s act, default, or failure; 2. Providing a reasonable opportunity for grantee, franchisee, or lessee to first remedy the existing or ongoing default or failure, if applicable; ------------------------- ORD 6798 EXHIBIT C PAGE 32 of 152    3. Providing a reasonable opportunity for grantee, franchisee, or lessee to pay any moneys due the city before the city executes the bondfinancial security or withdraws the amount thereof from the financial security fund, if applicable; and 4. That the grantee, franchisee, or lessee will be given an opportunity to review the act, default or failure described in the notice with the city or designee. CD. Grantees, fFranchisees and lessees shall replenish the financial security bond or fund within 14 calendar days after written notice from the city that there is a deficiency in the amount of the bond or fundfinancial security. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.260 Performance bond. E. When the value of work proposed to be performed under any permit within the public way exceeds the amount of the financial security in this provision, the franchisee may be required to provide an additional financial security in a sufficient amount as determined by the city. All performance bondsfinancial securities provided in accordance with this title shall comply with the minimum standards in Chapter 12.24 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.28020.02.290 Assignments or transfers of public way agreements, franchises, cable franchises, or leases. The assignment or transfer of any business registrationlicense, public way agreement, franchise or lease subject to this title may not, directly or indirectly, be transferred, assigned or disposed of by sale, lease, merger, consolidation or other act of the grantee, franchisee, or lessee, by operation of law or otherwise, without the prior written consent of the city, which consent shall not be unreasonably withheld or delayed, except as expressed by ordinance and then only on such reasonable conditions as may be prescribed therein. ------------------------- ORD 6798 EXHIBIT C PAGE 33 of 152    A. No public way agreement, franchise, or lease, subject to this title, shall be assigned or transferred before construction of such systems has been completed to the city’s satisfaction without prior written consent of the city, which consent shall not be unreasonably withheld or delayed, except as expressed by ordinance and then only on such reasonable conditions as may be prescribed therein. B. The grantee, franchisee, or lessee and the proposed assignee or transferee of the public way agreement, franchise, or lease shall provide and certify the following information to the city not less than 90 calendar days prior to the proposed date of transfer: 1. Complete information setting forth the nature, terms and conditions of the proposed transfer or assignment relating to the public way agreement, franchise or lease; 2. All information required by a public way agreement, franchise, or lease applicant pursuant to this title with respect to the proposed transferee or assignee; 3. Any other information reasonably required by the city; and 4. A nonrefundable application fee in the amount established in the city’s fee schedule. C. No transfer shall be approved unless the assignee or transferee meets the requirements contained in ACC 20.04.040(A) and (I)Title 20 ACC and can comply with the requirements of the public way agreement, franchise, or lease. D. Unless otherwise provided in a public way agreement, franchise, or lease agreement, the grantee, franchisee, or lessee 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 a public way agreement, franchise, or lease. No approval shall be deemed approved until all such costs and expenses have been paid. ------------------------- ORD 6798 EXHIBIT C PAGE 34 of 152    E. Any transfer or assignment of a public way agreement, franchise, or lease without prior written approval of the city under this section or pursuant to a public way agreement, franchise, or lease agreement shall be void and is cause for termination of the public way agreement, franchise, or lease. F. Notwithstanding anything contained herein to the contrary, transfer of cable franchises shall additionally be governed by applicable provisions of federal law, and issues involving transfers may be addressed in a cable franchise. (Ord. 6718 § 5 (Exh. E), 2019; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.290 Transactions affecting control of public way agreements, franchises, or leases. G Any transactions which singularly or collectively result in a change of 50 percent or more of the ownership or working control of any grantee, franchisee, or lessee of the ownership or working control of a utility, cable, or telecommunications system, of the ownership or working control of affiliated entities having ownership or working control of the grantee, franchisee, or lessee or of a utility, cable, or telecommunications system, or of control of the capacity or bandwidth of the grantee, franchisee, or lessee’s utility, cable, or telecommunications system, facilities or substantial parts thereof, shall be considered an assignment or transfer requiring city approval pursuant to ACC 20.10.280this provision. Transactions between affiliated entities are not exempt from the required city approval. A grantee, franchisee, or lessee shall promptly notify the city in writing prior to any proposed change in, or transfer of, or acquisition by any other party of control of a grantee’s, franchisee’s, or lessee’s company. Every change, transfer, or acquisition of control of a grantee’s, franchisee’s, or lessee’s company shall cause a review of the proposed transfer. In the event that the city council adopts a resolution, ordinance, or other appropriate order opposing such change, transfer or acquisition of control that has been completed without prior city approval pursuant to this provisioneffected, the city may terminate the public way agreement, franchise, or lease. City approval shall not be required for mortgaging purposes or if said transfer is from a grantee, franchisee, or ------------------------- ORD 6798 EXHIBIT C PAGE 35 of 152    lessee to another person or entity controlling, controlled by, or under common control with a grantee, franchisee, or lessee. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.34020.02.300 Civil penalties. A. In accordance with Chapter 1.25 ACC, unless otherwise provided herein, Aany person, and the officers, directors, managing agents, or partners of any corporation, firm, partnership or other organization or business violating or failing to comply with any of the provisions of this title shall be subject to a penalty in an amount not less than $100.00 nor more than $1,000 per day for each violation from the date of each violation until compliance is achieved. B. In addition to any penalty which may be imposed by the city council, any person violating or failing to comply with any of the provisions of this title shall be liable for all damage to public or private property arising from such violation, and costs incurred by the city, including the cost of restoring the affected area to its condition prior to the violation. C. The violator may show the city council as full or partial mitigation: 1. That the violation giving rise to the action was caused by the willful act, or neglect, or abuse of another; or 2. That correction of the violation was commenced promptly upon receipt of the notice thereof, but that full compliance within the time specified was prevented by inability to obtain necessary materials or labor, inability to gain access to the subject structure, or other condition or circumstance beyond the control of the violator. D. The penalties which may be imposed by this section shall be collected by civil action brought by the city if not paid timely after penalty assessment by the city council. The public works director or designee shall notify the finance director in writing of the name of any person subject to the penalty, and the finance director ------------------------- ORD 6798 EXHIBIT C PAGE 36 of 152    shall take appropriate action to collect the penalty. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.44020.02.310 Unfunded mandate. The city intends that no federal or state requirement to promote the deregulation of utilities, cable, or telecommunications shall become an unfunded mandate requiring funding support from the city over and above its routine operations and maintenance budget to maintain the public ways. Therefore, except as expressly provided to the contrary, all costs incurred by a grantee, franchisee, or lessee in complying with the terms and conditions of any franchise, cable franchise, lease, or other agreement subject to this title or any applicable laws, ordinances, codes, rules, regulations and/or orders or any action thereunder shall be the sole responsibility of the respective grantee, franchisee, or lessee and shall not be the responsibility of or charged to the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.48020.02.320 Administration. The public works director or designee shall administer all public way agreements and franchises subject to this title, and the finance directormayor or designee shall administer all leases subject to this title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 37 of 152    Chapter 20.04 PUBLIC WAY AGREEMENTSUTILITY AND TELECOMMUNCATION FRANCHISES Sections: 20.04.010 Public way agreementsFranchise requirements. 20.04.020 Public way agreementFranchise applications. 20.04.030 Notice of complete application, franchise negotiations and scheduling of meetingpublic hearing on franchises. 20.04.040 Determination by the city. 20.04.050 Notification of council action and execution of agreement. 20.04.060 Nonexclusive public way agreementsAcceptance and effective date. 20.04.070 Rights grantedNonexclusive franchise. 20.04.080 Term of telecommunications public wayfranchise agreements. 20.04.090 Specified routeRights granted. 20.04.100 Service to city usersFranchise territory. 20.04.110 Amendment to public way agreementsFranchise fees in addition to utility taxes. 20.04.120 Renewal of public way agreementsNondiscrimination. 20.04.130 Determination by city for renewal of public way agreementsAmendment of franchise. 20.04.140 Notification of council action on renewal of public way agreements and execution of agreementsRenewal of franchise. 20.04.150 Obligation to cure as a condition of renewalDetermination by city for renewal of franchise. 20.04.160 ReservedObligation to cure as a condition of renewal. 20.04.170 Annual fee for recovery of city costsNotification of council action on renewal of franchise agreements and execution of agreements. 20.04.180 Other city costs. 20.04.190 Compensation for use of public ways. ------------------------- ORD 6798 EXHIBIT C PAGE 38 of 152    20.04.010 Public way agreements. A public way agreement shall be required of any commercial utility or telecommunications provider who desires to occupy specific public ways of the city for the sole purpose of providing commercial utility or telecommunications services to persons or areas outside the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.020 Public way agreement applications. Any person that desires a public way agreement pursuant to this title shall file an application with the city which shall include the following information: A. The identify of the applicant, including all affiliates of the applicant; B. A description of the commercial utility or telecommunications services that are or will be offered or provided by the applicant using its facilities; C. A description of the transmission medium or transporting means that will be used by the applicant to offer or provide such telecommunications or utility services; D. Preliminary engineering plans, specifications and a network map of the facilities to be located within the city all in sufficient detail to identify: 1. The location and route requested for applicant’s proposed facilities; 2. The location of all overhead and underground public utility, telecommunication, cable, water, sewer drainage and other facilities in the public way along the proposed route; 3. The location(s), if any, for interconnection with the utility or telecommunications facilities of other utility or telecommunications carriers, operators, and providers; and 4. The specific trees, structures, improvements, facilities and obstructions, if any, that applicant proposes to temporarily or permanently remove or relocate; ------------------------- ORD 6798 EXHIBIT C PAGE 39 of 152    E. If applicant is proposing to install above-ground and/or overhead facilities: 1. Evidence that surplus space is available for locating its utility or telecommunications facilities on existing utility poles along the proposed route; 2. Proof of compliance with city’s zoning code; and 3. Demonstrate compatibility with existing and future street illumination systems; F. If applicant is proposing an underground installation in existing ducts or conduits within the public ways, information in sufficient detail to identify: 1. The excess capacity currently available in such ducts or conduits before installation of applicant’s utility or telecommunications facilities; 2. The excess capacity, if any, that will exist in such ducts or conduits after installation of applicant’s utility or telecommunications facilities; 3. Evidence of ownership or a right to use such ducts or conduits; G. If applicant is proposing an underground installation within new ducts or conduits to be constructed within the public ways: 1. The location proposed for the new ducts or conduits; and 2. The excess capacity that will exist in such ducts or conduits after installation of applicant’s utility or telecommunications facilities; H. A preliminary construction schedule and completion date; I. Information to establish that the applicant has obtained all other governmental approvals and permits to construct and operate the facilities, and to offer or provide the utility or telecommunications services, including, but not limited to, evidence that the applicant has registered with the Washington Utilities and Transportation Commission; J. All deposits or charges required pursuant to this title; ------------------------- ORD 6798 EXHIBIT C PAGE 40 of 152    K. Proof of ability to meet city’s bonding requirements in ACC 12.24.050 when the applicant does not have an existing standing bond on file with the city sufficient to cover the scope of work proposed and proof of ability to meet security requirements in ACC 20.10.240 through 20.10.260; L. A copy of an Auburn business license stamped and signed by the business license clerk, as designated by the mayor; and M. A nonrefundable application fee as set forth in the Auburn fee schedule. (Ord. 6546 § 3, 2014; Ord. 5897 § 22, 2005; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.030 Notice of complete application and scheduling of meeting. A. Within 30 calendar days after receipt of the public way agreement application, the city will complete review of the application to determine whether the application contains sufficient information as outlined in ACC 20.04.020 to proceed with processing. If during the 30-calendar-day review period, the city engineer determines that the application is incomplete, the city engineer will issue a letter to the applicant specifying the additional information necessary to complete the application. The applicant will be given 30 calendar days to respond to the request for additional information. Once the additional information is received by the city, an additional 14 calendar days will be allowed to determine whether the application is complete. Once the application is determined complete, written notice will be provided following the procedure outlined in this subsection. If the applicant needs additional time to respond, the applicant may request up to an additional 30 calendar days. If a response is not timely received, the application will be returned to the applicant with a notice that the application is rejected due to failure to provide the required information. Any new applications will require a new application fee. B. When satisfied that the application is complete, the city engineer will notify the applicant in writing that the application is complete and inform the applicant of the schedule for consideration by the city council. The city clerk will notify the applicant in ------------------------- ORD 6798 EXHIBIT C PAGE 41 of 152    writing of the scheduled meeting. (Ord. 6532 § 32, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.040 Determination by the city. Within 180 calendar days from the time of notification that the application is complete, under ACC 20.04.030(A), the city council shall reach a decision. The city council’s decision to grant or deny, in whole or in part, an application for a public way agreement shall be based upon the following: A. Whether the applicant has received all requisite licenses, certificates, and authorizations from the Federal Communications Commission, the Washington Utilities and Transportation Commission, and any other federal or state agency with jurisdiction over the activities proposed by the applicant; B. The capacity of the public ways to accommodate the applicant’s proposed facilities; C. The capacity of the public ways to accommodate additional utility, cable, and telecommunications facilities if the public way agreement is granted; D. The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the public way agreement is granted; E. The public interest in minimizing the cost and disruption of construction within the public ways; F. The service that applicant will provide to the community and/or the region; G. The effect, if any, on public health, safety and welfare if the public way agreement is granted; H. The availability of alternate routes and/or locations for the proposed facilities; ------------------------- ORD 6798 EXHIBIT C PAGE 42 of 152    I. Applicable federal and state utility and telecommunications laws, regulations and policies; J. The ability to avoid or mitigate, to the city’s satisfaction, future conflicts with the operation, repair, replacement, and maintenance of city-owned and other public/private utilities; K. The ability of the applicant to stabilize existing pavement structures prior to disturbance in a manner sufficient to ensure future deterioration is not accelerated by virtue of the installed facilities, and/or the ability and willingness of the applicant to fully mitigate such damages to the extent that they may prove unavoidable to the satisfaction of the city. Such security for the pavement’s integrity may include additional periods of warranty bonding for up to five years from the date of completion of work as determined by the city engineer; L. Demonstrated ability and commitment to meet city bonding and security requirements established in ACC 20.10.240 through 20.10.260 and Chapter 12.24 ACC; and M. Such other factors as may demonstrate that the public way agreement to use the public ways will serve the community interest. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.050 Notification of council action and execution of agreement. Upon the city council’s decision, the public works director shall notify the applicant of the decision including reason(s) for denial and instruct the applicant of the procedure to follow to complete execution of the agreement if approved by the city council. No public way agreement shall be deemed to have been granted hereunder until the applicant and the city have fully executed a written agreement approved by the city council setting forth the particular terms and provisions under which the grantee has been granted the right to occupy and use public ways of the city and the applicant ------------------------- ORD 6798 EXHIBIT C PAGE 43 of 152    has provided the security deposits and proof of insurance as required by Chapter 20.10 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.060 Nonexclusive public way agreements. No public way agreement granted under this title shall confer any exclusive right, privilege, license or franchise to occupy or use the public ways of the city for delivery of telecommunications services or any other purposes. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.070 Rights granted. No public way agreement granted under this title shall convey any right, title or interest in the public ways, but shall be deemed an authorization only to use and occupy the public ways for the limited purposes and term stated in the public way agreement. Further, no public way agreement shall be construed as any warranty of title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.080 Term of telecommunications public way agreements. By virtue of the uncertainties created by the Act, unless otherwise specified in an existing public way agreement, no agreement granted hereunder shall be in effect for a term exceeding five years. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.090 Specified route. A public way agreement granted under this title shall be limited to a use of public ways specified and defined in the agreement. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 44 of 152    20.04.100 Service to city users. A grantee shall be permitted to use public ways to offer or provide utility or telecommunications services to persons or areas within the city only upon city council approval of a telecommunications franchise agreement pursuant to this title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.110 Amendment to public way agreements. A new application shall be required of any commercial utility or telecommunications provider who desires to extend or locate its facilities in public ways of the city which are not included in a public way agreement previously granted under this title. If a grantee is required by the city to locate or relocate its facilities in public ways not included in a previously granted public way agreement, the city shall grant an amendment to the agreement without further application. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.120 Renewal of public way agreements. A provider that desires to renew its public way agreement in effect under this chapter for an additional term not to exceed five years shall, not more than 180 days nor less than 120 days before expiration of the public way agreement in effect, file an application, which is determined as complete in accordance with ACC 20.04.030, with the city for renewal which shall include the following: A. The information required pursuant to ACC 20.04.020; B. Any information required pursuant to the public way agreement between the city and the grantee; C. All deposits or charges required pursuant to this chapter; and ------------------------- ORD 6798 EXHIBIT C PAGE 45 of 152    D. A nonrefundable application fee as set forth in the Auburn fee schedule. (Ord. 6546 § 4, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.130 Determination by city for renewal of public way agreements. The process specified in ACC 20.04.030 for determining and notifying the applicant of completeness of application shall be used for renewals. Within 120 days after receiving a complete application for renewal, following the procedures in ACC 20.04.040, the city council shall grant or deny the renewal application in whole or in part. If the renewal application is denied, the written determination shall include the reason(s) for denial. The decision to grant or deny an application for the renewal of a public way agreement shall, in addition to the criteria set forth in ACC 20.04.040, be based upon the following: A. The continuing capacity of the public ways to accommodate the applicant’s existing facilities; and B. The applicant’s compliance with the requirements of this title and the public way agreement. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.140 Notification of council action on renewal of public way agreements and execution of agreements. Once the city council has decided on the renewal application, the procedures outlined in ACC 20.04.050 shall be followed for execution of any agreement renewals. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.150 Obligation to cure as a condition of renewal. No public way agreement shall be renewed until any ongoing violations or defaults in the grantee’s performance under the public way agreement, or of the requirements of ------------------------- ORD 6798 EXHIBIT C PAGE 46 of 152    this title, have been cured, or a plan, secured by a sufficient bond or deposit of funds to the city’s satisfaction, detailing the corrective action to be taken by the grantee has been approved in writing by the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.160 Reserved. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.170 Annual fee for recovery of city costs. Each public way agreement granted under this title is subject to the city’s right, which is expressly reserved, to annually fix a fair and reasonable compensation to be paid as reimbursement for the city’s costs in connection with reviewing, inspecting and supervising the use and occupancy of the public ways on behalf of the public and existing or future users; provided further, that the compensation required from any utility or telecommunications provider or carrier engaged in the “telephone business,” as defined in RCW 82.04.065 shall be consistent with RCW 35.21.860. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.180 Other city costs. All grantees shall, within 30 days after written demand, reimburse the city for all direct and indirect costs and expenses incurred by the city in connection with any modification, amendment, renewal or transfer of the public way agreement. In addition, all grantees shall, within 30 days after written demand, reimburse the city for any and all costs the city reasonably incurs in response to any emergency involving the grantee’s facilities. All grantees shall, within 30 days after written demand, reimburse the city for the grantee’s proportionate share of all actual, identified expenses incurred by the city in planning, constructing, installing, repairing or altering ------------------------- ORD 6798 EXHIBIT C PAGE 47 of 152    any city facility as a result of the construction or the presence in the public ways of the grantee’s facilities. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.01020.04.010 Franchise requirements. A franchise shall be required of any commercial utility or telecommunications operator or carrier or other person who desires to occupy public ways of the city and to provide telecommunications or commercial utility services to any person or area in the city or outside the city; provided, however, that a public way agreementRight-of- Way Use permit may be approved in accordance with the provisions of this title instead of a franchiseChapter 12.60 ACC in the following circumstances: A. A privately owned utility or telecommunications network or telecommunications system which is operated solely for purposes of serving itself. An example of such a network or telecommunications system includes, but is not limited to, autility or telecommunications networkfacilities connecting two business facilities under common ownership or control, when said facilities are not offered to other business entities or persons. B. De minimis uses of public ways made in conjunction with a wireless telecommunications facility located entirely upon publicly or privately owned propertyA cable system as defined in ACC 5.84.020, shall be governed by the procedures of Chapter 20.06 ACC rather than the requirements of this Chapter. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.02020.04.020 Franchise applications. Any person who desires a telecommunications or a commercial utility franchise pursuant to this title shall file an application with the city public works department which, in addition to the information required by ACC 20.04.020,An applicant for an initial franchise to construct, operate, and maintain a utility or telecommunications system within the city shall file an application in a form prescribed by the city, ------------------------- ORD 6798 EXHIBIT C PAGE 48 of 152    accompanied by a nonrefundable franchise application fee in the amount set forth in the City of Auburn fee schedule. The application shall include the following: A. The identity of the applicant, including all affiliates of the applicant; B. A description of the utility or telecommunications services that are or will be offered or provided by the applicant; C. A description of the facilities, transmission medium or transporting means that will be used by the applicant to offer or provide such utility or telecommunications services; D Applications proposing citywide facilities shall submit conceptual plans showing the general route or locations of facilities. Applications proposing site specific facilities shall submit plans in compliance with the City’s Engineering Design Standards; E Evidence of ownership or a right to use existing utility or telecommunications facilities such as poles, ducts, conduit or other facilities which the applicant intends to use or lease; F Information to establish that the applicant has obtained all other governmental approvals and permits to construct and operate the facilities, and to offer or provide the utility or telecommunications services, including, but not limited to, evidence that the applicant has registered with the Washington Utilities and Transportation Commission; AG. Whether the applicant intends to provide cable service, video dialtone service or other multi-channel video programming service, and sufficient information to determine whether such service is subject to cable franchising under Chapter 20.06 ACC; B. An accurate map showing the location of any existing utility or telecommunications facilities in the city that applicant intends to use or lease so that ------------------------- ORD 6798 EXHIBIT C PAGE 49 of 152    the city can keep track of various systems using the public way(s) to prevent interference between the users; C. A description of the services or facilities that the applicant will offer or make available to the city and other public, educational and governmental institutions, if any; D. A description of applicant’s service, access and line extension policies; EH. The area or areas of the city the applicant desires to serve and an initial schedule for build-out to the entire franchise area; F. The applicant’s intended means and methods of providing service and whether shared use of other utility poles or conduits is envisioned; G. All fees, deposits or charges required pursuant to this chapter; HI. Such other and further information as permitted by federal and stateapplicable law as may be requested by the city; IJ. Proof of ability to meet city’s bonding requirements in ACC 12.24.050 when the applicant does not have an existing standing bond on file with the city sufficient to cover the scope of work proposed and proof of ability to meet financial security requirements in ACC 20.10.240 through 20.10.26020.02.280; JK. A copy of an Auburn business license stamped and signed by the business license clerk, as designated by the mayor; and KL. A nonrefundable application fee and other charges as set forth in the Auburn fee schedule. (Ord. 6546 § 5, 2014; Ord. 5897 § 23, 2005; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 50 of 152    20.06.03020.04.030 Notice of complete application, franchise negotiations and scheduling of public hearing on franchises. A. Notice of Complete Application. Within 30 calendar days after receipt of the franchise application, the city will complete review of the application to determine whether the application contains sufficient information as outlined in ACC 20.06.02020.04.020 to proceed with processing. If during the 30-calendar-day review period, the city engineer determines that the application is incomplete, the city engineer will issue a letter to the applicant specifying the additional information necessary to complete the application. The applicant will be given 30 calendar days to respond. Once the additional information is received by the city, an additional 14 calendar days will be allowed to determine whether the application is complete. Once the application is determined complete, written notice will be provided. If the applicant needs additional time to respond the applicant may request up to an additional 30 calendar days. If a response is not timely received, the application will be returned to the applicant with a notice that the application is rejected due to failure to provide the required information. Any new applications will require a new application fee. B. Franchise Negotiations. When satisfied that the application is complete, the city will notify the applicant in writing that the application is complete. At such time franchise negotiations may commence. BC. Scheduling of Public Hearing. When satisfied that the application is completeAfter completion of negotiations, the city engineer will notify the applicant in writing that the application is complete and inform the applicant of the schedule for consideration by the city council in accordance with RCW 35.99.030. The city council will schedule the hearing to consider the proposed franchise, and the city clerk will notify the applicant in writing of the scheduled hearing. (Ord. 6532 § 33, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 51 of 152    20.06.04020.04.040 Determination by the city. Within 180120 calendar days from the time of notification that the application is complete or as otherwise permitted by RCW 35.99.030, under ACC 20.06.030(A)20.04.030(A), the city shall issue a written determination granting or denying the application in whole or in part. Prior to granting or denying a franchise under this title, the city council shall conduct a public hearing and make a decision based upon the criteria set forth below. Pursuant to Section 253(c) of the Federal Communications Act, public disclosure of any fees as compensation for use of the public right-of-way is required, and RCW 35A.47.040 provides that the city council shall not approve any franchise hereunder until the next regularly scheduled council meeting following the public hearing. If the application is denied, in whole or in part, the written determination shall include the reason(s) for denial. The decision to grant or deny, in whole or in part, an application for a utility or telecommunications franchise shall be based upon the following: A. Whether the applicant has received all requisite licenses, certificates, and authorizations from the Federal Communications Commission, the Washington Utilities and Transportation Commission, and any other federal or state agency with jurisdiction over the activities proposed services to be provided by the applicant; B. The capacity of the public ways to accommodate the applicant’s proposed facilities; C. The capacity of the public ways to accommodate additional utility and telecommunications facilities if the franchise is granted; D. The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the franchise is granted; E. The public interest in minimizing the cost and disruption of construction within the public ways; F. The service that applicant will provide to the community and region; ------------------------- ORD 6798 EXHIBIT C PAGE 52 of 152    G. The effect, if any, on public health, safety and welfare if the franchise requested is granted; H. The availability of alternate routes and/or locations for the proposed facilities; I. Applicable federal and state utility and telecommunications laws, regulations and policies; J. The ability to avoid, or mitigate to the city’s satisfaction, future conflicts with the operation, repair, replacement, and maintenance of city-owned and other commercial utilities; K. The ability of the applicant to stabilize existing pavement structures prior to disturbance in a manner sufficient to ensure future deterioration is not accelerated by virtue of the installed facilities, and/or the ability and willingness of the applicant to fully mitigate such damages to the extent that they may prove unavoidable to the satisfaction of the city. Such security for the pavement’s integrity may include additional periods of warranty bonding for up to five years from date of completion of work as determined by the city engineer; L. Demonstrated ability and commitment to meet city bonding and financial security requirements established in ACC 20.10.240 through 20.10.26020.02.280 and Chapter 12.24 ACC; and M. Such other factors as may demonstrate that the franchise to use the public ways will serve the community interest. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.05020.04.050 Notification of council action and execution of franchise. Upon the city council’s decision, the public works director shall notify the applicant of the decision, including reason(s) for any denial, and instruct the applicant of the procedure to follow to complete execution of the agreement if approved by the city council. No franchise shall be deemed to have been granted hereunder until after the public hearing and city council approval of a written agreement setting forth the ------------------------- ORD 6798 EXHIBIT C PAGE 53 of 152    particular terms and provisions under which the franchisee has been granted the right to occupy and use public ways of the city and both the city and applicant have fully executed the franchise and the applicant has provided the financial security, deposits and proof of insurance and any outstanding fees as required by Chapter 20.1020.02 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.02020.04.060 Acceptance and effective date. No public way agreement, franchise, or lease granted pursuant to the provisions of this title shall become effective unless and until the ordinance or other city action granting the same has become effective. Within 30 days after the effective date of the ordinance or other city action granting a public way agreement, franchise, or lease, or within such extended period of time as the council in its discretion may authorize, the applicant shall file with the city clerk an unconditional written acceptance of the public way agreement, franchise, or lease, in a form satisfactory to the city attorney, together with the bonds, insurance policies, financial and security, and any outstanding fees fund required by this title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.06020.04.070 Nonexclusive franchise. No franchise granted under this title shall confer any exclusive right, privilege, license or franchise to occupy or use the public ways of the city for delivery of utility or telecommunications services or any other purposes. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.07020.04.080 Term of franchise agreements. By virtue of the uncertainties created by the Act, unless otherwise specified in an existing franchise agreement, a telecommunications franchise granted by the city ------------------------- ORD 6798 EXHIBIT C PAGE 54 of 152    pursuant to this title shall be valid for a term not to exceed five years.Unless otherwise specified in a franchise agreement, the term of any franchise agreement, granted hereunder shall not exceed fifteen years at the sole discretion of the City. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.08020.04.090 Rights granted. No franchise granted under this chapter shall convey any right, title or interest in the public ways, but shall be deemed a franchise only to use and occupy the public ways for the limited purposes and term stated in the franchise. Further, no franchise shall be construed as any warranty of title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.09020.04.100 Franchise territory. Unless otherwise provided in the franchise ordinance, a franchise granted under this chapter shall authorize the franchisee to operate in the public ways throughout the city when a permit to install the necessary facilities has been approved by the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.10020.04.110 Franchise fees in addition to utility taxes. Revenue derived directly or indirectly from sources within the city shall be subject to applicable utility taxes as of the time of commencement of such operations, as determined by Title 3 ACC. Franchise fees shall be in addition to any utility tax, but shall be collectible only to the extent as then allowed by applicable law, and in no event may the combined utility tax and franchise fee exceed the amount permitted by applicable law. (Ord. 6546 § 6, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 55 of 152    20.06.11020.04.120 Nondiscrimination. A franchisee which purports to serve the general public shall make its utility or telecommunications services available to any customer within its franchise area who shall request such service, without discrimination as to the terms, conditions, rates or charges for the franchisee’s services; provided, however, that nothing in this title shall prohibit a franchisee from making any reasonable classifications among differently situated customers. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.12020.04.130 Amendment of franchise. Except as otherwise provided within an existing franchise ordinance, a new franchise application shall be required of any commercial utility or telecommunications carrier or operator that desires to extend its franchise territory or to locate its utility or telecommunications facilities in public ways of the city which are not included in a franchise previously granted under this title. If a franchisee is required by the city to locate or relocate its facilities in public ways not included in a previously granted franchise, the city shall grant a franchise amendment without further application. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.13020.04.140 Renewal of franchise. A franchisee that desires to renew its franchise under this chapter for an additional five-year term shall, not more than 240 days nor less than 180 days before expiration of the franchise in effect, file an application, which is determined as complete in accordance with ACC 20.06.03020.04.030, with the city for a renewal of its franchise which shall include the following: A. The information required pursuant to ACC 20.06.02020.04.020; B. Any information required pursuant to the franchise agreement between the city and the franchisee; ------------------------- ORD 6798 EXHIBIT C PAGE 56 of 152    C. All deposits or charges required pursuant to this chapterFinancial security, proof of insurance and any outstanding fees as required by Chapter 20.02 ACC; D. A nonrefundable application fee in the amount as set forth in the Auburn fee schedule. (Ord. 6546 § 7, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.14020.04.150 Determination by city for renewal of franchise. The process specified in ACC 20.06.03020.04.030 for determining and notifying of completeness of application shall be used for renewals. Within 120 calendar days after receiving a complete application for renewal or such time as permitted by RCW 35.99.030, following the procedures in ACC 20.06.03020.04.030, the city council shall grant or deny the renewal application in whole or in part. If the renewal application is denied, the written determination shall include the reason(s) for denial. Prior to granting or denying renewal of a franchise under this chapter, in whole or in part, the city council shall conduct a public hearing and make a decision based upon the criteria set forth below in addition to all criteria in ACC 20.06.04020.04.040. A. The continuing capacity of the public ways to accommodate the applicant’s existing facilities. B. The applicant’s compliance with the requirements of this title and the franchise agreement. C. Applicable federal, state and local utility and telecommunications laws, rules and policies. D. Such other factors as may demonstrate that the continued franchise to use the public ways will serve the community interest. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 57 of 152    20.06.15020.04.160 Obligation to cure as a condition of renewal. No franchise shall be renewed until any ongoing violations or defaults in the franchisee’s performance of the franchise agreement, or of the requirements of this title, have been cured, or a plan detailing the corrective action to be taken by the franchisee has been approved in writing by the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.04.14020.04.170 Notification of council action on renewal of public wayfranchise agreements and execution of agreements. Once the city council has decided on the renewal application, the procedures outlined in ACC 20.04.050 shall be followed for execution of any agreement renewals. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.17020.04.180 Other city costs. All franchisees shall, within 30 days after written demand, reimburse the city for all direct and indirect costs and expenses incurred by the city in connection with any modification, amendment, renewal or transfer of the franchise or any franchise agreement. In addition, all franchisees shall, within 30 days after written demand, reimburse the city for any and all costs the city reasonably incurs in response to any emergency involving the franchisee’s utility or telecommunications facilities. Finally, all franchisees shall, within 30 days after written demand, reimburse the city for the franchisee’s proportionate share of all actual, identified expenses incurred by the city in planning, constructing, installing, repairing or altering any city facility as a result of the presence in the public way of the franchisee’s utility or telecommunications facilities. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 58 of 152    20.06.18020.04.190 Compensation for use of public ways. A. The city finds that the public ways to be used by commercial utilities andutility or telecommunications carriers and operators in the operation of utility or telecommunications systems within the boundaries of the franchise are valuable public properties, acquired and maintained by the city at great expense to its taxpayers, and that the grant of use of said public ways is a valuable property right, without which grantees and franchisees would be required to invest substantial capital in public way costs and acquisitions; therefore, grantees and franchisees shall pay the city as a general compensation for the use of the public way during each year of the term of a franchise a franchise fee as determined by city council, not to exceed six percent of gross revenues for each quarter of each calendar year. Franchisees shall pay the franchise fee mandated by this chapter but the city acknowledges and understands that such amount (and any other fees, assessments, or taxes imposed on franchisees not described in subsection E of this section) shall appear as a line item on the bill sent to, and shall be collected from, the subscribers; provided further, that the compensation required from any telecommunications operator or carrier engaged in the “telephone business,” as defined in RCW 82.04.065, shall be consistent with RCW 35.21.860. B. Annual Franchise Fee Adjustments. The initial annual franchise fee percentage shall be the amount permitted by applicable law of gross revenues unless and until it is further adjusted by city council. Any such adjustment shall occur at least 60 days before any subsequent annual anniversary date. Any adjustment shall become effective on the subsequent annual anniversary date. C. Quarterly Payment. Franchisees shall forward by check, cashier’s check, other certified funds or electronic payment in the form of a wire or Direct Deposit (ACH) wire transfer an amount equal to this quarterly payment by the fifteenth day of the second calendar month immediately following the close of the calendar quarter for which the payment is calculated. ------------------------- ORD 6798 EXHIBIT C PAGE 59 of 152    D. Late Payment. In the event any quarterly payment is made after noon on the date 10 days after the date due, franchisees shall pay a late payment penalty as shown in the city’s fee schedule. E. Fees and Compensation Not a Tax. The fees, charges and fines provided for in this title and any compensation charged and paid for the franchisee’s use of the city’s public ways, whether “fiduciary or in kind,” are separate from, and additional to, any and all federal, state, local and city taxes as may be levied, imposed or due from a commercial utility, telecommunications carrier, operator, or provider, its customers or subscribers or on account of the lease, sale, delivery or transmission of utility or telecommunications services. F. Ruling of Unenforceability. The compensation required from any commercial utility, telecommunications carrier, operator, or provider shall be as provided by applicable law. In the event any franchise fee shall be held unenforceable by a court of law which has jurisdiction over the city, franchisees shall pay the equivalent amount paid in franchise fees as a city utility tax which shall be applied retroactively to time periods during which the franchise fee was determined to be unenforceable. G. Quarterly Report. In order to properly determine the gross revenues received by franchisees, the franchisee shall, on the same date that each quarterly payment is made, file with the director of finance a sworn copy of a report, in a form acceptable to the city, in sufficient detail to itemize revenues from each of the revenue categories. The city may, if it sees fit and at its own expense, have the books and records of franchisees examined by a representative of said city to ascertain the correctness of the reports agreed to be filed herein. Neither the acceptance of any payment nor any subsequent review shall be deemed an agreement by the city that the correct payment was paid, absent a fully authorized written release by the city on any such payments or on such reports. Any necessary prorations shall be made in the first and last year of each term of the franchise. Any city request for access to books and records shall be allowed by the franchisee at reasonable times and for reasonable purposes. Such information shall be held in strict confidence by the city as allowed by applicable law and used only for the purpose stated herein. ------------------------- ORD 6798 EXHIBIT C PAGE 60 of 152    H. Recalculation at End of Compensation Year. At the end of each calendar year, franchisees shall recalculate the total general compensation actually due. If additional amounts are due the city by franchisee, said amounts shall be paid by the fifteenth day of February following the calendar year during which such amounts were originally due. If amounts are found to be due the franchisees by the city, said amounts shall be credited by the fifteenth day of February during which such amounts were originally due. Any necessary prorations will be made. I. Taxes Are Not to Be a Credit. The compensation paid under this franchise shall be exclusive of and in addition to all special assessments and taxes of whatever nature which are applicable to all other persons or entities doing business within the city, including, but not limited to, ad valorem tax, sales tax, corporate or business occupation taxes or other taxes or fees imposed or levied by any governmental entity. J. Utility Tax Liability – Franchise Fees. Revenues derived directly or indirectly from sources within the city shall be subject to applicable utility taxes as of the time of commencement of such operations. Franchise fees shall be in addition to any utility tax, but shall be collectible only to the extent as then allowed by applicable law, and in no event may the combined utility tax and franchise fee exceed six percent of gross revenues in accordance with RCW 35.21.870. Franchise fees, if applicable, shall be levied on a nondiscriminatory basis. K. Rights of City. Payment of money under any franchise shall not in any way limit or inhibit any of the privileges or rights of the city, except insofar as city’s privileges or rights are expressly limited or inhibited by the terms of a franchise. L. Annual Report. Franchisees shall file annually with the director of finance, no later than 90 days after the end of franchisee’s fiscal year, an unaudited statement of revenues (for that fiscal year just ended) attributable to the operations of the franchisee’s utility or telecommunications system within the city pursuant to the franchise agreement. The statement shall present a detailed breakdown of gross revenues and uncollectible accounts for the year. The city may, if it sees fit, have ------------------------- ORD 6798 EXHIBIT C PAGE 61 of 152    such report audited by an independent certified public accountant of its choosing. If the audit reveals an underpayment error in payment by franchisees of more than fivetwo percent unless otherwise agreed to in a franchise agreement, then franchisees shall pay for the costs of the audit. If the audit reveals an error in payment of fivetwo percent or less, the city shall pay the costs of the audit. The report will summarize those accounts reconciled to be within the franchise area by the city’s quarterly review. M. Circumventing Payments. Any transaction(s) which have the effect of circumventing payment of the required franchise fees and/or evasion of payment of franchise fees or any payments due the city under a franchise by non-collection or non-reporting of gross revenues, bartering, or any other means which evade the actual collection of revenues for business pursued by franchisees are prohibited. N. Best Rates. As allowed by applicable law, part of the compensation to the city for the grant of any telecommunications franchise, the city shall be entitled to obtain subscriptions, at the city’s discretion, to the communications service at franchisee’s lowest comparable rate applicable to any government body or municipality of the state of Washington. In addition, city shall be entitled to franchisee’s lowest comparable rate applicable to any governmental body or municipality of the state of Washington for purchase and/or lease, should the city determine to purchase and/or lease equipment or modems applicable to government bodies or municipalities in the state of Washington for purposes of accessing the communications service. (Ord. 6718 § 3 (Exh. C), 2019; Ord. 6546 § 8, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 62 of 152    Chapter 20.06 CABLE FRANCHISES Sections: 20.06.010 Franchise requirementsPurpose. 20.06.020 Franchise applicationsCable franchise conditions and term. 20.06.030 Notice of complete application and scheduling of public hearingCable franchise application. 20.06.040 Determination by the cityScheduling public hearing; notice; criteria for approval. 20.06.050 Notification of council action and execution of franchiseDetermination by the city. 20.06.060 Nonexclusive franchiseApplication instructions and requirements for competitive cable franchise. 20.06.070 Term of franchiseAcceptance. 20.06.080 Rights grantedRules and regulations by the city. 20.06.090 Franchise territoryTechnical standards and maintenance. 20.06.100 Franchise fees in addition to utility taxesConstruction Standards. 20.06.110 NondiscriminationUndergrounding. 20.06.120 Amendment of franchiseConstruction in public ways. 20.06.130 Renewal of franchiseSafety requirements. 20.06.140 Determination by city for renewal of franchiseRates. 20.06.150 Obligation to cure as a condition of renewalCustomer service. 20.06.160 ReservedTelephone response. 20.06.170 Other city costsFailure to improve customer service. 20.06.180 Compensation for use of public waysFranchise fee. 20.06.190 Accounts, books and recordsRecord Inspection. 20.06.200 Reports. 20.06.210 Programming. 20.06.220 Nondiscrimination. 20.06.230 Inconsistency. 20.06.240 Severability. ------------------------- ORD 6798 EXHIBIT C PAGE 63 of 152    20.06.010 Franchise requirements. A franchise shall be required of any commercial utility or telecommunications operator or carrier or other person who desires to occupy public ways of the city and to provide telecommunications or commercial utility services to any person or area in the city; provided, however, that a public way agreement may be approved in accordance with the provisions of this title instead of a franchise in the following circumstances: A. A privately owned telecommunications network or telecommunications system which is operated solely for purposes of serving itself. An example of such a network or telecommunications system includes, but is not limited to, a telecommunications network connecting two business facilities under common ownership or control, when said facilities are not offered to other business entities or persons. B. De minimis uses of public ways made in conjunction with a wireless telecommunications facility located entirely upon publicly or privately owned property. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.020 Franchise applications. Any person who desires a telecommunications or a commercial utility franchise pursuant to this title shall file an application with the city public works department which, in addition to the information required by ACC 20.04.020, shall include the following: A. Whether the applicant intends to provide cable service, video dialtone service or other video programming service, and sufficient information to determine whether such service is subject to cable franchising; B. An accurate map showing the location of any existing utility or telecommunications facilities in the city that applicant intends to use or lease so that ------------------------- ORD 6798 EXHIBIT C PAGE 64 of 152    the city can keep track of various systems using the public way(s) to prevent interference between the users; C. A description of the services or facilities that the applicant will offer or make available to the city and other public, educational and governmental institutions, if any; D. A description of applicant’s service, access and line extension policies; E. The area or areas of the city the applicant desires to serve and an initial schedule for build-out to the entire franchise area; F. The applicant’s intended means and methods of providing service and whether shared use of other utility poles or conduits is envisioned; G. All fees, deposits or charges required pursuant to this chapter; H. Such other and further information as permitted by federal and state law as may be requested by the city; I. Proof of ability to meet city’s bonding requirements in ACC 12.24.050 when the applicant does not have an existing standing bond on file with the city sufficient to cover the scope of work proposed and proof of ability to meet security requirements in ACC 20.10.240 through 20.10.260; J. A copy of an Auburn business license stamped and signed by the business license clerk, as designated by the mayor; and K. A nonrefundable application fee as set forth in the Auburn fee schedule. (Ord. 6546 § 5, 2014; Ord. 5897 § 23, 2005; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.030 Notice of complete application and scheduling of public hearing. A. Notice of Complete Application. Within 30 calendar days after receipt of the franchise application, the city will complete review of the application to determine ------------------------- ORD 6798 EXHIBIT C PAGE 65 of 152    whether the application contains sufficient information as outlined in ACC 20.06.020 to proceed with processing. If during the 30-calendar-day review period, the city engineer determines that the application is incomplete, the city engineer will issue a letter to the applicant specifying the additional information necessary to complete the application. The applicant will be given 30 calendar days to respond. Once the additional information is received by the city, an additional 14 calendar days will be allowed to determine whether the application is complete. Once the application is determined complete, written notice will be provided. If the applicant needs additional time to respond the applicant may request up to an additional 30 calendar days. If a response is not timely received, the application will be returned to the applicant with a notice that the application is rejected due to failure to provide the required information. Any new applications will require a new application fee. B. Scheduling of Public Hearing. When satisfied that the application is complete, the city engineer will notify the applicant in writing that the application is complete and inform the applicant of the schedule for consideration by the city council. The city council will schedule the hearing and the city clerk will notify the applicant in writing of the scheduled hearing. (Ord. 6532 § 33, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.040 Determination by the city. Within 180 calendar days from the time of notification that the application is complete, under ACC 20.06.030(A), the city shall issue a written determination granting or denying the application in whole or in part. Prior to granting or denying a franchise under this title, the city council shall conduct a public hearing and make a decision based upon the criteria set forth below. Pursuant to Section 253(c) of the Federal Act, public disclosure of any fees as compensation for use of public right-of-way is required, and RCW 35A.47.040 provides that the city council shall not approve any franchise hereunder until the next regularly scheduled council meeting following the public hearing. If the application is denied, in whole or in part, the written determination shall include the reason(s) for denial. The decision to grant or deny, in ------------------------- ORD 6798 EXHIBIT C PAGE 66 of 152    whole or in part, an application for a telecommunications franchise shall be based upon the following: A. Whether the applicant has received all requisite licenses, certificates, and authorizations from the Federal Communications Commission, the Washington Utilities and Transportation Commission, and any other federal or state agency with jurisdiction over the activities proposed by the applicant; B. The capacity of the public ways to accommodate the applicant’s proposed facilities; C. The capacity of the public ways to accommodate additional utility and telecommunications facilities if the franchise is granted; D. The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the franchise is granted; E. The public interest in minimizing the cost and disruption of construction within the public ways; F. The service that applicant will provide to the community and region; G. The effect, if any, on public health, safety and welfare if the franchise requested is granted; H. The availability of alternate routes and/or locations for the proposed facilities; I. Applicable federal and state utility and telecommunications laws, regulations and policies; J. The ability to avoid, or mitigate to the city’s satisfaction, future conflicts with the operation, repair, replacement, and maintenance of city-owned and other commercial utilities; K. The ability of the applicant to stabilize existing pavement structures prior to disturbance in a manner sufficient to ensure future deterioration is not accelerated by ------------------------- ORD 6798 EXHIBIT C PAGE 67 of 152    virtue of the installed facilities, and/or the ability and willingness of the applicant to fully mitigate such damages to the extent that they may prove unavoidable to the satisfaction of the city. Such security for the pavement’s integrity may include additional periods of warranty bonding for up to five years from date of completion of work as determined by the city engineer; L. Demonstrated ability and commitment to meet city bonding and security requirements established in ACC 20.10.240 through 20.10.260 and Chapter 12.24 ACC; and M. Such other factors as may demonstrate that the franchise to use the public ways will serve the community interest. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.050 Notification of council action and execution of franchise. Upon the city council’s decision the public works director shall notify the applicant of the decision, including reason(s) for any denial, and instruct the applicant of the procedure to follow to complete execution of the agreement if approved by the city council. No franchise shall be deemed to have been granted hereunder until after the public hearing and city council approval of a written agreement setting forth the particular terms and provisions under which the franchisee has been granted the right to occupy and use public ways of the city and both the city and applicant have fully executed the franchise and the applicant has provided the security deposits and proof of insurance as required by Chapter 20.10 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.060 Nonexclusive franchise. No franchise granted under this title shall confer any exclusive right, privilege, license or franchise to occupy or use the public ways of the city for delivery of utility or telecommunications services or any other purposes. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 68 of 152    20.06.070 Term of franchise. By virtue of the uncertainties created by the Act, unless otherwise specified in an existing franchise agreement, a telecommunications franchise granted by the city pursuant to this title shall be valid for a term not to exceed five years. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.080 Rights granted. No franchise granted under this chapter shall convey any right, title or interest in the public ways, but shall be deemed a franchise only to use and occupy the public ways for the limited purposes and term stated in the franchise. Further, no franchise shall be construed as any warranty of title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.090 Franchise territory. Unless otherwise provided in the franchise ordinance, a franchise granted under this chapter shall authorize the franchisee to operate in the public ways throughout the city when a permit to install the necessary facilities has been approved by the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.100 Franchise fees in addition to utility taxes. Revenue derived directly or indirectly from sources within the city shall be subject to applicable utility taxes as of the time of commencement of such operations. Franchise fees shall be in addition to any utility tax, but shall be collectible only to the extent as then allowed by law, and in no event may the combined utility tax and franchise fee exceed the amount permitted by law. (Ord. 6546 § 6, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 69 of 152    20.06.110 Nondiscrimination. A franchisee which purports to serve the general public shall make its utility or telecommunications services available to any customer within its franchise area who shall request such service, without discrimination as to the terms, conditions, rates or charges for the franchisee’s services; provided, however, that nothing in this title shall prohibit a franchisee from making any reasonable classifications among differently situated customers. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.120 Amendment of franchise. Except as otherwise provided within an existing franchise ordinance, a new franchise application shall be required of any commercial utility or telecommunications carrier or operator that desires to extend its franchise territory or to locate its utility or telecommunications facilities in public ways of the city which are not included in a franchise previously granted under this title. If a franchisee is required by the city to locate or relocate its facilities in public ways not included in a previously granted franchise, the city shall grant a franchise amendment without further application. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.130 Renewal of franchise. A franchisee that desires to renew its franchise under this chapter for an additional five-year term shall, not more than 240 days nor less than 180 days before expiration of the franchise in effect, file an application, which is determined as complete in accordance with ACC 20.06.030, with the city for a renewal of its franchise which shall include the following: A. The information required pursuant to ACC 20.06.020; B. Any information required pursuant to the franchise agreement between the city and the franchisee; ------------------------- ORD 6798 EXHIBIT C PAGE 70 of 152    C. All deposits or charges required pursuant to this chapter; D. A nonrefundable application fee in the amount as set forth in the Auburn fee schedule. (Ord. 6546 § 7, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.140 Determination by city for renewal of franchise. The process specified in ACC 20.06.030 for determining and notifying of completeness of application shall be used for renewals. Within 120 calendar days after receiving a complete application for renewal, following the procedures in ACC 20.06.030, the city council shall grant or deny the renewal application in whole or in part. If the renewal application is denied, the written determination shall include the reason(s) for denial. Prior to granting or denying renewal of a franchise under this chapter, in whole or in part, the city council shall conduct a public hearing and make a decision based upon the criteria set forth below in addition to all criteria in ACC 20.06.040. A. The continuing capacity of the public ways to accommodate the applicant’s existing facilities. B. The applicant’s compliance with the requirements of this title and the franchise agreement. C. Applicable federal, state and local utility and telecommunications laws, rules and policies. D. Such other factors as may demonstrate that the continued franchise to use the public ways will serve the community interest. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 71 of 152    20.06.150 Obligation to cure as a condition of renewal. No franchise shall be renewed until any ongoing violations or defaults in the franchisee’s performance of the franchise agreement, or of the requirements of this title, have been cured, or a plan detailing the corrective action to be taken by the franchisee has been approved in writing by the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.160 Reserved. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.170 Other city costs. All franchisees shall, within 30 days after written demand, reimburse the city for all direct and indirect costs and expenses incurred by the city in connection with any modification, amendment, renewal or transfer of the franchise or any franchise agreement. In addition, all franchisees shall, within 30 days after written demand, reimburse the city for any and all costs the city reasonably incurs in response to any emergency involving the franchisee’s utility or telecommunications facilities. Finally, all franchisees shall, within 30 days after written demand, reimburse the city for the franchisee’s proportionate share of all actual, identified expenses incurred by the city in planning, constructing, installing, repairing or altering any city facility as a result of the presence in the public way of the franchisee’s utility or telecommunications facilities. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.180 Compensation for use of public ways. A. The city finds that the public ways to be used by commercial utilities and carriers and operators in the operation of telecommunications systems within the boundaries of the franchise are valuable public properties, acquired and maintained by the city at ------------------------- ORD 6798 EXHIBIT C PAGE 72 of 152    great expense to its taxpayers, and that the grant of use of said public ways is a valuable property right, without which grantees and franchisees would be required to invest substantial capital in public way costs and acquisitions; therefore, grantees and franchisees shall pay the city as a general compensation for the use of the public way during each year of the term of a franchise a franchise fee as determined by city council, not to exceed six percent of gross revenues for each quarter of each calendar year. Franchisees shall pay the franchise fee mandated by this chapter but the city acknowledges and understands that such amount (and any other fees, assessments, or taxes imposed on franchisees not described in subsection E of this section) shall appear as a line item on the bill sent to, and shall be collected from, the subscribers; provided further, that the compensation required from any telecommunications operator or carrier engaged in the “telephone business,” as defined in RCW 82.04.065, shall be consistent with RCW 35.21.860. B. Annual Franchise Fee Adjustments. The initial annual franchise fee percentage shall be the amount permitted by law of gross revenues unless and until it is further adjusted by city council. Any such adjustment shall occur at least 60 days before any subsequent annual anniversary date. Any adjustment shall become effective on the subsequent annual anniversary date. C. Quarterly Payment. Franchisees shall forward by check wire transfer an amount equal to this quarterly payment by the fifteenth day of the second calendar month immediately following the close of the calendar quarter for which the payment is calculated. D. Late Payment. In the event any quarterly payment is made after noon on the date 10 days after the date due, franchisees shall pay a late payment penalty as shown in the city’s fee schedule. E. Fees and Compensation Not a Tax. The fees, charges and fines provided for in this title and any compensation charged and paid for the franchisee’s use of the city’s public ways, whether “fiduciary or in kind,” are separate from, and additional to, any and all federal, state, local and city taxes as may be levied, imposed or due from a ------------------------- ORD 6798 EXHIBIT C PAGE 73 of 152    commercial utility, telecommunications carrier, operator, or provider, its customers or subscribers or on account of the lease, sale, delivery or transmission of utility or telecommunications services. F. Ruling of Unenforceability. The compensation required from any commercial utility, telecommunications carrier, operator, or provider shall be as provided by law. In the event any franchise fee shall be held unenforceable by a court of law which has jurisdiction over the city, franchisees shall pay the equivalent amount paid in franchise fees as a city utility tax which shall be applied retroactively to time periods during which the franchise fee was determined to be unenforceable. G. Quarterly Report. In order to properly determine the gross revenues received by franchisees, the franchisee shall, on the same date that each quarterly payment is made, file with the director of finance a sworn copy of a report, in a form acceptable to the city, in sufficient detail to itemize revenues from each of the revenue categories. The city may, if it sees fit and at its own expense, have the books and records of franchisees examined by a representative of said city to ascertain the correctness of the reports agreed to be filed herein. Neither the acceptance of any payment nor any subsequent review shall be deemed an agreement by the city that the correct payment was paid, absent a fully authorized written release by the city on any such payments or on such reports. Any necessary prorations shall be made in the first and last year of each term of the franchise. Any city request for access to books and records shall be allowed by the franchisee at reasonable times and for reasonable purposes. Such information shall be held in strict confidence by the city as allowed by law and used only for the purpose stated herein. H. Recalculation at End of Compensation Year. At the end of each calendar year, franchisees shall recalculate the total general compensation actually due. If additional amounts are due the city by franchisee, said amounts shall be paid by the fifteenth day of February following the calendar year during which such amounts were originally due. If amounts are found to be due the franchisees by the city, said amounts shall be credited by the fifteenth day of February during which such amounts were originally due. Any necessary prorations will be made. ------------------------- ORD 6798 EXHIBIT C PAGE 74 of 152    I. Taxes Are Not to Be a Credit. The compensation paid under this franchise shall be exclusive of and in addition to all special assessments and taxes of whatever nature which are applicable to all other persons or entities doing business within the city, including, but not limited to, ad valorem tax, sales tax, corporate or business occupation taxes or other taxes or fees imposed or levied by any governmental entity. J. Utility Tax Liability – Franchise Fees. Revenues derived directly or indirectly from sources within the city shall be subject to applicable utility taxes as of the time of commencement of such operations. Franchise fees shall be in addition to any utility tax, but shall be collectible only to the extent as then allowed by law, and in no event may the combined utility tax and franchise fee exceed six percent of gross revenues in accordance with RCW 35.21.870. Franchise fees, if applicable, shall be levied on a nondiscriminatory basis. K. Rights of City. Payment of money under any franchise shall not in any way limit or inhibit any of the privileges or rights of the city, except insofar as city’s privileges or rights are expressly limited or inhibited by the terms of a franchise. L. Annual Report. Franchisees shall file annually with the director of finance, no later than 90 days after the end of franchisee’s fiscal year, an unaudited statement of revenues (for that fiscal year just ended) attributable to the operations of the franchisee’s telecommunications system within the city pursuant to the franchise agreement. The statement shall present a detailed breakdown of gross revenues and uncollectible accounts for the year. The city may, if it sees fit, have such report audited by an independent certified public accountant of its choosing. If the audit reveals an underpayment error in payment by franchisees of more than five percent, then franchisees shall pay for the costs of the audit. If the audit reveals an error in payment of five percent or less, the city shall pay the costs of the audit. The report will summarize those accounts reconciled to be within the franchise area by the city’s quarterly review. ------------------------- ORD 6798 EXHIBIT C PAGE 75 of 152    M. Circumventing Payments. Any transaction(s) which have the effect of circumventing payment of the required franchise fees and/or evasion of payment of franchise fees or any payments due the city under a franchise by noncollection or nonreporting of gross revenues, bartering, or any other means which evade the actual collection of revenues for business pursued by franchisees are prohibited. N. Best Rates. As allowed by applicable law, part of the compensation to the city for the grant of any telecommunications franchise, the city shall be entitled to obtain subscriptions, at the city’s discretion, to the communications service at franchisee’s lowest comparable rate applicable to any government body or municipality of the state of Washington. In addition, city shall be entitled to franchisee’s lowest comparable rate applicable to any governmental body or municipality of the state of Washington for purchase and/or lease, should the city determine to purchase and/or lease equipment or modems applicable to government bodies or municipalities in the state of Washington for purposes of accessing the communications service. (Ord. 6718 § 3 (Exh. C), 2019; Ord. 6546 § 8, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.06.190 Accounts, books and records. The franchisee shall keep the city fully informed as to accounting methods and procedures in connection with the recording and reporting by the franchisee of all revenues and uncollectibles. A. City to Be Informed. Franchisees shall keep the city fully informed as to all matters in connection with or which may affect the construction, reconstruction, removal, maintenance, operation and repair of franchisee’s system located in public way(s), franchisee’s accounting methods and procedures in connection therewith, and the recording and reporting by franchisees of all revenues and uncollectibles. Franchisees shall comply with the city’s determination regarding forms for reports, the time for reports, the frequency with which any reports are to be made, and whether reports are to be made under oath. The city acknowledges that a franchisee ------------------------- ORD 6798 EXHIBIT C PAGE 76 of 152    may be a reporting company under the Securities Exchange Act of 1934 and that shares of its stock are publicly traded. As such, a franchisee may be precluded from disclosing certain sensitive, nonpublic information by virtue of rules and regulations promulgated under such act or otherwise. B. Accounts. The franchisee shall keep complete and accurate books of account and records of its business and operations subject to this franchise chapter in accordance with generally accepted accounting principles or in accordance with accounting rules prescribed by applicable federal or state regulatory agencies. The city may require the keeping of additional records or accounts which are reasonably necessary for purposes of identifying, accounting for, and reporting gross revenues and uncollectibles. All subscribers who report a service address in the city of Auburn shall be subject to taxes and fees under this franchise. When required by the city, the franchisee shall make available a complete list of all service addresses within the city of Auburn. This list shall be available for review by the city at a local franchisee’s business office. The list will be provided on a computer disc in ASCII format sorted by zip code. It is understood this data is only needed for Auburn to perform an audit to ascertain that the correct subscribers are subjected to Auburn taxes and fees. As the city annexes new areas, those zip codes, if any, will be added. C. Access to Records. The franchisee shall provide the city with access at reasonable times and for reasonable purposes, to examine, audit, review and/or obtain copies of the papers, books, accounts, documents, maps, plans and other records of the franchisee pertaining to this franchise chapter. The franchisee shall fully cooperate in making available its records and otherwise assisting in these activities. Such information shall be held in strict confidence by the city, as allowed by law, and used only for the purpose stated herein. D. Inquiries to Franchisee. The city may, at any time, make inquiries pertaining to the franchisee’s operation of its utility or telecommunications system within the franchise area. The franchisee shall respond to such inquiries on a timely basis. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 77 of 152    13.36.01020.06.010 Purpose. The purpose of this chapter is to set forth an integrated statement of conditions, requirements, obligations, duties and procedures for granting by the city of a nonexclusive franchise for the construction, maintenance and operation of a cable systems of cable television signal distribution within the territorial limits of the cCity of Auburn. (Ord. 4625 § 2, 1993.) 13.36.03020.06.020 Cable Franchise – Conditions and term. A. Authority to Grant Cable Franchises or Licenses for Cable Television. The city council may by resolutionordinance award a nonexclusive franchise to construct, operate and maintain a cable communications system which complies with the requirements and conditions of this chapter. Any franchise granted pursuant to this chapter shall be nonexclusive and shall not preclude the city from granting other or further franchises or permits, or preclude the city from using any roads, rights-of- public ways, streets, or other public properties, or affect its jurisdiction over them or any part of them, or limit the full power of the city to make such changes as the city shall deem necessary, including the dedication, establishment, maintenance, and improvement of all new rights-of-public ways and thoroughfares and other public properties; provided, that any such changes shall not materially or substantially impair the rights granted a franchisee pursuant to this chapter. All franchises granted subsequent to the effective date of this chapter shall be consistent with the requirements and conditions of this chapter. B. Incorporation by Reference. The provisions of this chapter shall be incorporated by reference in any franchises approved pursuant hereto. The provisions of any proposal for a franchise submitted and accepted by the city shall be incorporated by reference in the applicable franchise; provided, that in the event of any conflict between the proposal, this chapter and the franchise, the franchise shall be the prevailing document. ------------------------- ORD 6798 EXHIBIT C PAGE 78 of 152    CB. Conditions of a Franchise. Subject to the provisions in this chapter, any cable franchise granted hereunder by the city shall authorize a franchisee to: (1) engage in the business of operating and providing cable service and the distribution and sale of such service to subscribers within the city; and (2) erect, install, construct, repair, replace, reconstruct, maintain and retain in, on, over, under, upon, across and along any street, such amplifiers and appliances, lines, cables, conductors, vaults, manholes, pedestals, attachments, supporting structures, and other property as may be necessary and appurtenant to the cable communications system; and (3) use, operate and provide similar facilities, or properties rented or leased from other persons, firms or corporations, including but not limited to any public utility or other franchisee franchised or permitted to do business in the city; provided, that no privilege or exemption shall be granted or conferred upon a franchisee by any franchise except those specifically prescribed therein, and any use of any street shall be consistent with any prior lawful occupancy of the street or any subsequent improvement or installation therein. DC. Term of Franchise. The council shall have the right to grant a franchise for a period of time which in the council’s judgement is the most appropriate to the circumstances of the particular grant and is in the best interests of the citizens of the city. (Ord. 4625 § 2, 1993.) 13.36.04020.06.030 Franchise – Application requirementsCable franchise application. An applicant for an initial franchise to construct, operate, and maintain a cable communication system within the city shall file an application in a form prescribed by the city, accompanied by a nonrefundable franchise application fee in the amount set forth in the city of Auburn fee schedule. The application shall include the following: (Ord. 6546 § 1, 2014; Ord. 4625 § 2, 1993.) A. The identity of the applicant, including all affiliates of the applicant that may be involved in the construction, operation and/or maintenance of the cable system; ------------------------- ORD 6798 EXHIBIT C PAGE 79 of 152    B. A description of the cable services that are or will be offered or provided by the applicant; C. A description of the facilities, transmission medium or transporting means that will be used by the applicant to offer or provide such cable services; E. Evidence of ownership or a right to use existing facilities such as poles, ducts, conduit or other facilities which the applicant intends to use or lease. F. Information to establish that the applicant has obtained any other required governmental approvals and permits to construct and operate the facilities, and to offer or provide cable services. H. The area or areas of the city the applicant desires to serve and a schedule for build-out to the entire franchise area; I. Such other and further information as permitted by applicable law as may be requested by the city; J. Proof of ability to meet city’s bonding requirements in ACC 12.24.050 when the applicant does not have an existing standing bond on file with the city sufficient to cover the scope of work proposed and proof of ability to meet financial security requirements in ACC 20.02.280; K. A copy of an Auburn business license stamped and signed by the business license clerk, as designated by the mayor; and L. A nonrefundable application fee and other charges as set forth in the Auburn fee schedule. 20.06.040 Scheduling public hearing; notice; criteria for approval. A. Notice of Complete Application. Within 30 calendar days after receipt of the franchise application, the city will complete review of the application to determine whether the application required by ACC 20.06.030 is complete and can proceed ------------------------- ORD 6798 EXHIBIT C PAGE 80 of 152    with processing. If during the 30-calendar-day review period, the public works director or designee determines that the application is incomplete, the city will issue a letter to the applicant specifying the additional information necessary to complete the application. The applicant will be given 30 calendar days to respond. Once the additional information is received by the city, an additional 14 calendar days will be allowed to determine whether the application is complete. Once the application is determined complete, written notice will be provided. If the applicant needs additional time to respond the applicant may request up to an additional 30 calendar days. If a response is not timely received, the application will be returned to the applicant with a notice that the application is rejected due to failure to provide the required information. Any new applications will require a new application fee. B. Franchise Negotiations. When satisfied that the application is complete, the city will notify the applicant in writing that the application is complete. At such time cable franchise negotiations may commence. At a minimum, a cable franchise must provide that access to cable service will not be denied to any group of potential residential cable subscribers because of the income of the residents of the local area in which such group resides; that the public will be benefited by the granting of a franchise to the applicant; that the applicant has the requisite financial and technical resources and capabilities to build, operate and maintain a cable television system in the area; and that the applicant will provide adequate public, educational, and governmental access channel capacity, facilities, or financial support. C. After completion of negotiations, the city will notify the applicant in writing of the schedule for consideration by the city council in accordance with RCW 35.99.030. The city council will schedule a public hearing to consider the proposed cable franchise, and the city clerk will notify the applicant in writing of the scheduled hearing. (Ord. 6532 § 33, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 81 of 152    20.06.050 Determination by the city. Within 120 calendar days from the time of notification that the application is complete or as otherwise permitted by RCW 35.99.030, under ACC 20.06.040, the city shall issue a written determination granting or denying the application for a cable franchise in whole or in part, Prior to granting or denying a franchise under this title, the city council shall conduct a public hearing and make a determination base on the criteria set forth in federal law. 20.06.060 Application instruction and requirements for competitive cable franchises. A. Non-CFAR franchise applications. Notwithstanding any other provisions, any competitive cable services franchise applicant may elect to submit a cable franchise application to the City and/or engage in cable franchise negotiations without regard to the application of the FCC’s Competitive Franchise Application Rule (CFAR) - the administrative rule that imposes procedures upon local governments for the issuance of competitive cable franchises for areas currently served by an existing cable operator. In such cases, the City will negotiate the terms of a competitive cable franchise without regard to 47 CFR §76.41 and the other provisions of this Section. Agreement by any applicant to negotiate a franchise without regard to 47 CFR §76.41 and the other provisions of this Section shall not be deemed by the City to effect a waiver of any applicant’s right under applicable law to trigger application of 47 CFR §76.41 and this Section, where applicable. B. Instructions and definitions. 1. An applicant for a competitive cable franchise (“Applicant”) shall include the requisite information set forth below, in writing, in its franchise application, in addition to any information required by 47 CFR §76.41 and applicable state and local laws and the application fee in the amount set forth in the city of Auburn fee schedule. ------------------------- ORD 6798 EXHIBIT C PAGE 82 of 152    2. The City shall accept and review only those applications that include complete responses to every requirement of Subsections B, C, D and E of ACC 20.06.060. Submission of an application that does not include the requisite information set forth in Sections B, C, D and E, and the application fee shall not commence the time period for granting or denying the application set forth in 47 C.F.R. §76.41(d). The Applicant shall submit additional or updated information as necessary to ensure the requisite information provided is complete and accurate throughout the City’s review of the application. 3. Application shall be made to the Department of Public Works. 4. Upon request, the City will promptly provide access to documents or information in its possession or control that are necessary for the completion of this application, provided that the Applicant does not otherwise have access to such documents or information and that such documents or information are subject to disclosure under Washington public records act. 5. For the purposes of the application, the terms, phrases, and their derivations set forth below shall have the meanings given unless the context indicates otherwise. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular include the plural number. The word “shall” is always mandatory and not merely directory. a. “Affiliate(s)” when used in relation to any person, means any other person who owns or controls, is owned or controlled by, or is under common ownership or control with, such person. b. “Applicant” means an applicant for a cable franchise pursuant to the provisions of the Competitive Franchise Application Rule (“CFAR”) set forth in Part 76 of Title 47 of the Code of Federal Regulations, §76.41, and includes the Parent Corporation, its subsidiaries and Principals. ------------------------- ORD 6798 EXHIBIT C PAGE 83 of 152    c “Control” is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. d. “Interest” includes officers, directors and shareholders owning five percent (5%) or more of the Applicant’s outstanding stock or any equivalent voting interest of a partnership or joint venture. e “Parent Corporation” includes any entity with ownership or control of the Applicant. f “Principal” includes any person, firm, corporation, partnership, joint venture, affiliates, or other entity, who or which owns or controls five percent or more of the voting stock (or any equivalent voting interest of a partnership or joint venture) of the Applicant. g. “Regulatory Authority” includes any governmental or quasi-governmental organization or entity with jurisdiction over all or any portion of the Applicant or its operations. C. Requisite information: 1. Identification and Ownership Information. The application shall include the name, address, telephone number and web site (if applicable) of the Applicant and the proposed franchisee (if different from Applicant), and the name, address, primary telephone number and primary e-mail address of all individual(s) authorized to represent the Applicant before the City during its consideration of the franchise(s) requested, including the Applicant’s primary contact and any additional authorized contacts. 2. Business structure. a. If a corporation, the Applicant shall provide: 1) A list all officers and members of the Board of Directors, their principal affiliations and their addresses; 2) A certificate of good standing indicating that the Applicant is licensed to do business in the State of Washington; and 3) A statement ------------------------- ORD 6798 EXHIBIT C PAGE 84 of 152    indicating whether the Applicant is directly or indirectly controlled by another corporation or legal entity. If so, Applicant shall attach an explanatory statement and respond to this subsection concerning the controlling corporation. b. If a partnership, the Applicant shall describe the structure of the partnership and the interests of general and limited partners; and state whether the Applicant is controlled directly or indirectly by any corporation or other legal entity. If so, Applicant shall attach an explanatory statement and respond to subsection 2.a above, as applicable, concerning the controlling entity. 3. Experience. a. Current Franchises. An Applicant shall list all cable systems in which it or any Affiliate owns more than five percent of the system; provided that if the total number of cable systems exceeds ten, the Applicant shall list the ten systems that are the subject to its most recent cable franchises. For each system Applicant shall include name of system, address, communities served, number of subscribers, number of homes passed, date of system award, duration (start and end date) of franchise, status of construction, and percent of penetration of homes passed as of the most recent available date (indicate date). b. Potential Franchises. An Applicant shall list communities where it or any Affiliate currently has in the State of Washington a formal or informal request pending for an initial franchise, the renewal of a franchise, or the approval of a transfer of ownership. The Applicant shall include the name of communities, date of application, and date of expected action. 4. Management Structure. Every application for a competitive franchise shall include a management/organizational chart, showing the management structure of the Applicant. ------------------------- ORD 6798 EXHIBIT C PAGE 85 of 152    D. Legal qualification. 1. Franchise Violations. An Applicant shall state whether it or any Affiliate has been found in violation by a Regulatory Authority or franchising authority of any franchise ordinance or agreement, contract or regulation governing a cable system. If so, the Applicant shall identify the judicial or administrative proceeding, giving the date, name of tribunal and result or disposition of that proceeding. 2. Other Violations. An Applicant shall state whether it has been found in violation by a Regulatory Authority of any other type (e.g. utility) of franchise, ordinance, agreement, permit, contract or regulation. If so, the Applicant shall identify the judicial or administrative proceeding, giving the date, name of tribunal and result or disposition of that proceeding. E. E. Financial qualifications. Unless SEC Forms 10K and 10Q are available on the EDGAR database, Applicants with existing operations shall provide audited financial statements, including statements of income, balance sheets and cash flow statements, together with any notes necessary to the understanding of the financial statements for the last three fiscal years for the Applicant and any Parent Corporation. Applicants that are new (start-up) entities shall provide pro forma projections for the next five fiscal years, if available, but at a minimum the next three fiscal years from the date of the application. F. Technical qualifications, planned services and operations. 1. The application shall describe the Applicant’s planned initial and proposed cable services geographic area, including a map of all areas proposed to be served and proposed dates for offering service to each area. The application shall additionally state whether the Applicant proposes to provide cable services to the entire franchise area, and if so, a proposed timetable for meeting that goal; 2. If the Applicant has or asserts existing authority to access the public right of way in any of the initial or proposed service areas, the Applicant shall state the ------------------------- ORD 6798 EXHIBIT C PAGE 86 of 152    basis for such authority or asserted authority and attach the relevant agreements or other documentation of such authority; 3. The Applicant shall describe with particularity its planned residential Cable services, including basic cable services, other cable programming service tiers, and any additional pay-per-view, on-demand or digital services; and the projected rates for each category or tier or service; 4. The Applicant shall describe with particularity its planned system technical design, upstream and downstream capacity and speed, provision for analog or digital services or packages, distribution of fiber, planned count of households per residential node, and any other information necessary to demonstrate that the Applicant’s technology will be deployed so as to be able to successfully offer cable services in the proposed locations; 5. The Applicant shall describe with particularity its planned non-residential cable services; 6. The Applicant shall describe its planned construction and extension or phase schedule, as applicable, including system extension plans or policy; and describe the current status of the Applicant’s existing or proposed arrangements with area utilities, including pole attachments, vault, or conduit sharing agreements as applicable; 7. The Applicant shall describe its plan to ensure that the safety, functioning and appearance of property and convenience and safety of other persons not be adversely affected by installation or construction of the Applicant’s facilities, and that property owners are justly compensated for any damages caused by the installation, construction, operation or removal of the facilities; 8. The Applicant shall describe its plan to comply with the subscriber privacy protections set forth in 47 U.S.C. §551, and the privacy protections of the City’s local cable customer service standards. ------------------------- ORD 6798 EXHIBIT C PAGE 87 of 152    G. Certification of applicant. Each application shall be accompanied by a certificate in a form required by the City, and declaring that the Applicant’s representations are truthful H. Public records/confidentiality. Unless otherwise provided by applicable law, information submitted as part of an application is open to public inspection and subject to the Washington Public Records Act. I. Application fee. An application fee sufficient to cover the reasonable cost of processing applications under this ordinance will be in the amount set forth in the city of Auburn fee schedule. J Review Process 1. Acceptance of Application. The City shall review the application to ensure all requisite information is included in the application. If the application is not complete, the City will notify the Applicant in writing, listing the requisite information that is required to complete the application and notifying the Applicant that the time period for granting or denying the application set forth in 47 C.F.R. § 76.41(d) will not begin to run until such information is received. If the application is complete, the City will notify the Applicant in writing that all requisite information has been received. 2. Staff Review. The City staff shall review all completed applications based on the review criteria set forth herein. If, during the review of an application, staff reasonably requires additional information from the Applicant, staff will promptly request the information from the Applicant, in writing, along with a notification that the time period for granting or denying the application set forth in 47 C.F.R. § 76.41(d) will be tolled until such information is received by the City. After completing the review, staff shall provide an analysis of the application to the City Council. 3. Franchise Negotiations. Within the ninety (90) day time period set forth in 47 C.F.R. § 76.41(d), the City shall attempt to negotiate a cable franchise ------------------------- ORD 6798 EXHIBIT C PAGE 88 of 152    agreement with the applicant, and within that time period, schedule the application and any proposed franchise for public hearing as set forth in Subsection K. K. Public hearing. The City shall hold a public hearing before acting on the application, affording participants a process substantially equivalent to that required by 47 U.S.C. §546(c)(2) governing renewal of cable franchises. L. Review criteria. The City may deny an application if, based on the information provided in the application, at the public hearing and/or any terms of a proposed franchise agreement: 1. The Applicant does not have the financial, technical, or legal qualifications to provide cable service; 2. The Applicant will not provide adequate public, educational, and governmental access channel capacity, facilities, or financial support; or 3. The Applicant’s proposed terms do not comply with applicable laws and regulations including, but not limited to, local customer service standards, or relevant existing contractual obligations of the City. 13.36.06020.06.070 Acceptance. A. No franchise granted pursuant to the provisions of this chapter shall become effective unless and until the resolution ordinance granting same has become effective and the granteefranchisee has accepted same as provided below. B. Within 6030 days after the effective date of the resolutionordinance awarding a franchise, or within such extended period of time as the council in its discretion may authorize, a franchisee shall file with the city clerk its written acceptance of the franchise, in a form satisfactory to the city attorney, together with the bondfinancial security, and insurance policies, and any outstanding fees required by ACC 13.36.370 and 13.36.38020.02.270 and 20.02.280. (Ord. 4625 § 2, 1993.) ------------------------- ORD 6798 EXHIBIT C PAGE 89 of 152    13.36.08020.06.080 Rules and regulations by the city. In addition to the inherent powers of the city to regulate and control any franchise it issues, the authority granted to the city by the Actapplicable law, and those powers expressly reserved by the city or agreed to and provided for in a franchise, the city also reserves the right and power to promulgate such additional regulations as it may find necessary in the exercise of its lawful powers. (Ord. 4625 § 2, 1993.) 13.36.09020.06.090 Technical standards and maintenance. A. Subject to federal, state and localapplicable law, a franchisee shall comply with FCC Rules, Part 76, Subpart K, Section 76.601 through 76.610 and as amended hereafter, and, at the minimum, the following: 1. Applicable city, county, state and national/federal codes, laws and regulations; 2. Applicable utility joint attachment practices; 3. The National Electric Safety Code; ANSI C2; 4. Local utility code requirements; 5. Local rights-of-public way procedures, in accordance with ACC Titles 12, 13 and 20 ACC. ------------------------- ORD 6798 EXHIBIT C PAGE 90 of 152    B. A comprehensive routine preventive maintenance program shall be developed, effected and maintained to ensure continued top quality cable communications operating standards in conformance with FCC Regulations Part 76 and amendments thereto. (Ord. 6238 § 3, 2009; Ord. 4625 § 2, 1993.) 13.36.11020.06.100 Construction standards. All facilities constructed pursuant to the provisions of this chapter shall be placed and maintained at such places and positions in or upon such streets, avenues, alleys and public places as shall not interfere with the passage of traffic and the use of adjoining property, and shall conform to the applicable sections of the National Electrical Code, codes of the state of Washington and ACC Titles 12, 13 and 20 ACC pertaining to such construction. (Ord. 6238 § 4, 2009; Ord. 4625 § 2, 1993.) 13.36.13020.06.110 Undergrounding and landscaping. Undergrounding of all utilitycable facilities will meet the requirements of Chapter 13.32A ACC. (Ord. 6238 § 5, 2009; Ord. 4625 § 2, 1993.) 13.36.14020.06.120 Construction in right-of-the public way. Whenever, in the sole opinion of the city, any of a franchisee’s facilities or equipment need to be relocated or altered due to a construction or repair project by the city in a public way, a franchisee shall move or relocate said facilities or equipment within 30 days from receiving written notice from the city. However, in the event such relocation is required due to emergency repairs deemed necessary by the city, such relocation or moving shall be accomplished within 24 hours. Any relocation or alteration of a franchisee’s facilities or equipment required under this section shall be at the sole expense of a franchisee. Installation and/or relocation of all underground and aerial facilities within existing city right-of-way or public ways or city utility easements shall ------------------------- ORD 6798 EXHIBIT C PAGE 91 of 152    be permitted under Chapter 12.24 ACC, Construction Permits. (Ord. 5043 § 1 (Exh. B), 1998; Ord. 4625 § 2, 1993.) 13.36.15020.06.130 Safety requirements. A franchisee, in accordance with applicable national, state, and local safety requirements shall, at all times, employ ordinary care and shall install and maintain and use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injury, or nuisance to the public. All structures and all lines, equipment and connections in, over, under, and upon the streets, sidewalks, alleys, and public ways or places of a franchise area, wherever situated or located, shall at all times be kept and maintained in a safe, suitable condition and in good order and repair. The city reserves the general right to see that the system of a franchisee is constructed and maintained in a safe condition. If a violation of the National Electrical Safety Code or other applicable regulation is found to exist by the city, the city will, after discussions with a franchisee, establish a reasonable time for a franchisee to make necessary repairs. If the repairs are not made within the established time frame, the city may make the repairs itself or have them made and collect all reasonable costs thereof from the franchisee. (Ord. 4625 § 2, 1993.) 13.36.18020.06.140 Rates. Within 60 days after the grant of any franchise hereunder, a franchisee shall file with the city a complete schedule of all rates to be charged to all subscribers. Prior to implementation of any change in rates or charges for any service or equipment provided by a franchisee, the franchisee shall provide the city and all subscribers a minimum of 30 days prior written notice of such change. ------------------------- ORD 6798 EXHIBIT C PAGE 92 of 152    Subject to federal, state and localapplicable law, the city may regulate the approval of increases of rates or charges for providing cable service and prescribe reasonable rate approval procedures. (Ord. 4625 § 2, 1993.) 13.36.20020.06.150 Customer service. A. A franchisee shall render repair service to restore the quality of the signal at approximately the same standards existing prior to the failure or damage of the component causing the failure and make repairs promptly and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during a period of minimum use of the system. A log of all service interruptions shall be maintained for at least a period of one year. The city, after two working days’ notice, may inspect such logs. B. An employee of a franchisee shall answer and respond to all individual complaints received no later than 5:00 p.m. weekdays. A franchisee may use an answering service to receive complaints after 5:00 p.m. weekdays, weekends and holidays and will respond to any system outage affecting more than five subscribers. A copy of the instructions to the answering service by a franchisee shall be furnished to the city or its designee. C. A technician shall be on call seven days a week, 24 hours a day. A franchisee shall respond immediately to service complaints in an efficient manner. D. A franchisee shall maintain a sufficient repair force to respond to individual requests for repair service within two working days after receipt of the complaint or request, except Saturday, Sunday and legal holidays. All complaints shall be resolved within seven days, to the extent reasonable. If a subscriber has notified a franchisee of an outage, no charge for the period of the outage shall be made to the subscriber if the subscriber was without service for a period exceeding 24 hours, unless the outage was due to acts of God, force majeure or circumstances reasonably beyond a franchisee’s ability to control. ------------------------- ORD 6798 EXHIBIT C PAGE 93 of 152    E. A franchisee shall supply at the time of a new connection, and periodically at least once a year, the title, address, and telephone number of the city official or designee, to whom system subscribers may direct their concerns. FE. In no case will a franchisee’s service standards fall below the standards established by the National Cable Television Association (NCTA) which are attached to the ordinance codified in this chapter as Appendix “A” and incorporated within this chapter1 or any FCC regulationRegardless of any franchise provisions, the city retains the right to adopt any customer service standards to govern the provision of cable services within the city as may be permitted by applicable law. (Ord. 4625 § 2, 1993.) 1 Code reviser’s note: Appendix “A” is on file in the office of the city clerk. 13.36.21020.06.160 Telephone response. A. A franchisee shall maintain an adequate force of customer service representatives as well as incoming trunk lines so that telephone inquiries are met promptly and responsively. A franchisee shall have in place procedures for utilization of other manpower and/or recording devices for handling the flow of telephone calls at peak periods of large outages or other major causes of subscriber concern. A copy of such procedures and/or policies shall be made available to the city. B. In order that the city may be informed of a franchisee’s success in achieving satisfactory customer relations in its telephone answering functions, a franchisee shall, upon request by the city, and routinely no less than quarterly, provide the city with a summary that will provide, at a minimum, the following: 1. Total number of calls received in reporting periods; 2. Time taken to answer; 3. Average talk time; ------------------------- ORD 6798 EXHIBIT C PAGE 94 of 152    4. Number of calls abandoned by the caller; 5. Average hold time; 6. Percentage of time all lines busy; 7. An explanation of any abnormalities. This data will be compared to minimum standards of the NCTA incorporated in this chapter by reference or any amendment thereto which increases such NCTA standards, and shall be monitored by the city. CB. Calls for service generated during period of system outages due to emergency which affects more than 25 customers may be excluded from the service response calculations. The city shall have the sole determination as to what constitutes a system failure due to emergency and which calls shall be excluded from the service level calculations. (Ord. 4625 § 2, 1993.) 13.36.22020.06.170 Failure to improve customer service. A. The city or its designee shall review telephone response and customer service information with a franchisee. The franchisee shall make improvements in the appropriate categories which were found deficient pursuant to ACC 13.36.190 and 13.36.20020.06.150 from the last reporting period. Failure to do so may result in the calling of a public hearing by the council for the purpose of examining the reasons, if any, why such improvements were not achieved by a franchisee. B. An unsatisfactory record will result in the hearings being made part of an exhibit under Sections 626(c)(1)(A) and (B) of the Cable Act alleging that such practices have failed to conform with future refranchising requirements as stated therein. In addition, a franchisee’s corporate office shall be advised of the city’s findings. (Ord. 4625 § 2, 1993.) ------------------------- ORD 6798 EXHIBIT C PAGE 95 of 152    13.36.23020.06.180 Franchise fee. A franchisee shall pay to the city quarterly, on or before the thirtieth day of each January, April, July and October, a sum as set forth in the Auburn fee schedule. Such remittances shall be accompanied by forms furnished by the city to report detailed information as to the sources of such income. (Ord. 6546 § 2, 2014; Ord. 4625 § 2, 1993.) 13.36.26020.06.190 Record inspection. Subject to statutory and constitutional limits and two working days’ advance notice, the city reserves the right to inspect the records of a franchisee necessary for the enforcement of a franchise and verification of the accuracy of franchise fee payments at any time during normal business hours; provided, that the city shall maintain the confidentiality of any trade secrets or other proprietary information in the possession of a franchisee. Such documents shall include such information as financial records, subscriber records within the context of Section 631 of the Communications Act, and plans pertaining to a franchisee’s operation in the city, and any information reasonably necessary for the city to evaluate compliance with franchise obligations. (Ord. 4625 § 2, 1993.) 13.36.27020.06.200 Reports. A franchisee shall furnish, upon request, a report of its activities as appropriate. Such report shall include: A. Most recent annual report; B. A copy of the 10-K Report, if required by the Securities and Exchange Commission; C. The number of homes passed; ------------------------- ORD 6798 EXHIBIT C PAGE 96 of 152    D. The number of subscribers with basic services; E. The number of subscribers with premium services; F. The number of hook-ups in period; G. The number of disconnects in period; H. Total number of miles of cable in city; I. Summary of complaints received by category, length of time taken to resolve and action taken to provide resolution; J. A statement of its current billing practices, and a sample copy of the bill format; K. A current copy of its subscriber service contract; L. Report on operations; and M. Such other reports with respect to its local operation, affairs, transactions or property that may be appropriate. (Ord. 4625 § 2, 1993.) 13.36.28020.06.210 Programming. For informational purposes, a franchisee shall file a listing of its programing and the tiers in which they are placed. A franchisee shall consider the city’s suggestions of general program categories as determined from time to time in residential questionnaire polls. The results of initial such surveys will be appended to the respective franchise agreements. (Ord. 4625 § 2, 1993.) 13.36.29020.06.220 Nondiscrimination. A. A franchisee shall not, as to rates, charges, service facilities, rules, regulations or in any other respect, make or grant any preferences or advantage to any person nor subject any person to any prejudice or disadvantage; provided, that nothing in this ------------------------- ORD 6798 EXHIBIT C PAGE 97 of 152    chapter shall be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any customer coming within such classification would be entitled; and, provided further, that connection and/or service charges may be waived or modified during promotional campaigns of a franchisee. B. A franchisee will not deny access to cable communications service to any group of potential residential subscribers because of the income of the residents of the local area in which the group resides. (Ord. 4625 § 2, 1993.) 13.36.41020.06.230 Inconsistency. If any portion of chapter should be inconsistent or conflict with any rule or regulation now or hereafter adopted by the FCC or other federalapplicable law, then to the extent of the inconsistency or conflict, the rule or regulation of the FCC or other federalapplicable law shall control for so long, but only for so long, as such rule, regulation, or law shall remain in effect; provided the remaining provisions of this chapter shall not be affected thereby. (Ord. 4625 § 2, 1993.) 13.36.42020.06.240 Severability. Each section, subsection or other portion of chapter shall be severable and the invalidity of any section, subsection, or other portion shall not invalidate the remainder. (Ord. 4625 § 2, 1993.) ------------------------- ORD 6798 EXHIBIT C PAGE 98 of 152    Chapter 20.08 FACILITIES LEASE Sections: 20.08.010 Facilities lease. 20.08.020 Lease application. 20.08.030 Notice of complete application and scheduling of public hearing. 20.08.040 Determination by the city. 20.08.050 Notification of council action and execution of lease. 20.08.060 Nonexclusive leaseExtent of leasehold interest granted. 20.08.070 Term of facilities lease. 20.08.080 Rights granted. 20.08.090 Interference with other users. 20.08.100 Ownership and removal of improvements. 20.08.110 Cancellation of lease by lessee. 20.08.120 Compensation to the cityCompliance with zoning standards. 20.08.130 Amendment of facilities leaseRepealed. 20.08.140 Renewal of facilities leaseRepealed. 20.08.150 Determination by the city for renewal of facility leaseRepealed. 20.08.160 Obligation to cure as a condition of renewalRepealed. 20.08.010 Facilities lease. The city council may, in its sole discretion, which is hereby reserved, approve facilities leases for the location of commercial utility or telecommunications facilities and other nontelecommunications facilities upon city real property, as that term is defined in this title. Neither this chapter, nor any other provision of this title shall be construed to create an entitlement or vested right in any person or entity of any type to the use of any city property or city facility. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 99 of 152    20.08.020 Lease application. Any person that desires to solicit the city’s approval of a facilities lease pursuant to this title shall file a lease proposal with the city which, in addition to the information required by ACC 20.06.02020.04.020 and ACC 20.06.030, shall include the following: A. A description of the facilities or other equipment proposed to be located upon city property; B. A description of the city property upon which the applicant proposes to locate facilities or other equipment; C. Preliminary plans and specifications in sufficient detail to identify: 1. The location(s) of existing utilities or telecommunications facilities or other equipment upon the city property, whether publicly or privately owned; 2. The location and source of electric and other utilities required for the installation and/or operation of the proposed facilities or equipment; D. Accurate scale conceptual drawings and diagrams of sufficient specificity to analyze the aesthetic impacts of the proposed telecommunications facilities or other equipment; E. If applicant is proposing to install aboveground and/or overhead facilities: 1. Evidence that surplus space is available for locating its utilities or telecommunications facilities on existing utility poles along the proposed route; 2. Proof of compliance with city’s zoning code; F. Whether the applicant intends to provide cable service, video dialtone service or other multi-channel video programming service, and sufficient information to determine whether such service is subject to cable franchising; ------------------------- ORD 6798 EXHIBIT C PAGE 100 of 152    G. An accurate map showing the location of any existing utility or telecommunications facilities in the city that applicant intends to use or lease; H. A description of the services or facilities that the applicant will offer or make available to the city and other public, educational, and governmental institutions; I. A copy of an Auburn business license stamped and signed by the business license clerk, as designated by the mayor; J. Proof of ability to meet city’s bonding requirements in Chapter 12.24 ACC when the applicant does not have an existing standing bond on file with the city sufficient to cover the scope of work proposed; and proof of ability to meet the city’s security requirements in ACC 20.10.240 through 20.10.260; K. A nonrefundable application fee in the amount established in the city’s fee schedule, if applicable; and L. Such other and further information as may be requested by the city. (Ord. 6718 § 4 (Exh. D), 2019; Ord. 5897 § 24, 2005; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.030 Notice of complete application and scheduling of public hearing. A. Within 30 calendar days the city will complete an initial review of the application to determine whether the application contains sufficient information as outlined in ACC 20.08.020 to proceed with processing. Once satisfied that the proposal is clear, and if the city in its sole discretion determines that it is in the city’s interests to negotiate a lease, the mayor will appoint a negotiation team to meet with the applicant and director or designee responsible for the property will determine whether additional information is needed. The team shall as a minimum consist of the finance director, a legal representative, and the department director affiliated with the property being considered for lease. If during the 30-calendar-day review period, the application is deemed incomplete, the city will issue a letter to the applicant specifying the additional information necessary in order to proceed with processing. ------------------------- ORD 6798 EXHIBIT C PAGE 101 of 152    The applicant will be given 30 calendar days to respond. Once the additional information is received by the city, an additional 14 calendar days will be allowed to determine whether the application is complete. Once the application is determined complete, written notice will be provided. If a response is not timely received, the application will be returned to the applicant with a notice that the application is rejected due to failure to provide the required information. Any new applications will require a new application fee, if applicable. B. When satisfied that the application is complete, the finance director or designee responsible for the property will issue a letter of completeness and notifying the applicant of the process for consideration of the matter by the city council. Once an acceptable draft lease agreement has been prepared, the city clerk will schedule a hearing before the city council, if applicable, and the city clerk will notify the applicant in writing of the scheduled hearing. (Ord. 6532 § 34, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.040 Determination by the city. Recognizing that the city is under no obligation to approve a facilities lease for the use of city property, the city shall attempt to consider and take action on applications for facilities leases within 180 days from the time of reaching a determination of completeness, under ACC 20.08.030. When such action is taken, the city director or designee responsible for the property shall issue a written determination granting or denying the lease in whole or in part. If the lease is denied, in whole or in part, the written determination shall include the reason(s) for denial. The decision to grant or deny an application for a facilities lease shall be based upon, but not be limited to, the following criteria: A. The capacity of the city property and public ways to accommodate the applicant’s proposed facilities. ------------------------- ORD 6798 EXHIBIT C PAGE 102 of 152    B. The capacity of the city property and public ways to accommodate additional utility and telecommunications facilities if the lease is granted. C. The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the lease is granted. D. The public interest in minimizing the cost and disruption of construction upon city property and within the public ways. E. The service and public benefit that applicant will provide to the community and region. F. The effect, if any, on public health, safety, and welfare if the lease requested is approved. G. The availability of alternate routes and/or locations for the proposed facilities. HG. Whether the applicant is in compliance with applicable federal and state telecommunications laws, regulations and policies, including, but not limited to, the registration requirements administered by the Washington Utilities and Transportation Commission. I.H The potential for radio frequency and other interference with existing public and private telecommunications or other facilities located upon the city property. JI. The potential for radio frequency and other interference or impacts upon residential, commercial, and other uses located within the vicinity of the city property. KJ. Whether the city’s property zoning supports the proposed land use. LL. Demonstrated ability and commitment to meet city bonding requirements in Chapter 12.24 ACCand security requirements established in ACC 20.10.240 through 20.10.260. M. Such other factors as may demonstrate that the lease to use the city property will does not serve the community interest. ------------------------- ORD 6798 EXHIBIT C PAGE 103 of 152    N. Other criteria determined to be necessary or appropriate to the public health, safety, or welfare of the community. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.050 Notification of council action and execution of lease. Upon the city council’s decision, the finance director or designee responsible for the property shall notify the applicant of the decision and instruct the applicant of the procedure to follow to complete execution of the lease agreement if approved by the city council. No facilities lease shall be deemed to have been granted hereunder until after any scheduled public hearing, if applicable, and city council approval of a written agreement setting forth the particular terms and provisions under which the lessee has been granted the right to occupy and use the city property specified in the lease and both the city and applicant have fully executed the lease and the applicant has provided the security deposits and proof of insurance as required by Chapter 20.1020.02 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.060 Nonexclusive leaseExtent of leasehold interest granted. No facilitiesAny lease granted under this title shall be limited to the leasehold interest described in the lease document, and shall not confer any exclusive other right, privilege, license, or franchise to occupy or use city property for delivery of utility or telecommunications services or any other purposes not described therein. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.070 Term of facilities lease. By virtue of the uncertainties created by the Act, except as provided in any pre- existing lease agreements, tThe length of a facilities lease granted hereunder shall be set forth in the lease agreement, subject to renewal as provided in this chapter. (Ord. 6521 § 1, 2014; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 104 of 152    20.08.080 Rights granted. No facilities lease granted under this chapter shall convey any right, title or interest, of any kind, in the city property, but shall be deemed a license grant only to use and occupy the city property for the limited purposes and term stated in the lease agreement. Further, no facilities lease shall be construed as any warranty of title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.090 Interference with other users. No facilities lease shall be granted under this title unless it contains a provision which is substantially similar to the following: The City has previously entered or may enter into leases with other tenants for their equipment andinstallation and operation of utility and telecommunications facilities. Lessee acknowledges that the City is also leasing the City property for the purposes of transmitting and receiving telecommunications signals from the City property. The City, however, is not in any way responsible or liable for any interference with Lessee’s use of the City property which may be caused by the use and operation of any other tenant’s equipment, even if caused by new technology. In the event that any other tenant’s activities interfere with the Lessee’s use of the City property, and the Lessee cannot work out this interference with the other tenants, the Lessee may, upon 30 days’ notice to the City, terminate this Lease and restore the City property to its original condition, reasonable wear and tear exceptedaccepted. The Lessee shall cooperate with all other tenants to identify the causes of, and work towards the resolution of, any electronic interference problem. In addition, the Lessee agrees to eliminate any radio or television interference caused to City-owned or other public/private facilities or surrounding property owners, residents, or tenants at Lessee’s own expense and without installation of extra filters on City-owned equipment. Lessee further agrees to accept such interference as may be received from ------------------------- ORD 6798 EXHIBIT C PAGE 105 of 152    City operated telecommunications or other facilities located upon the City property subject to this Lease. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.100 Ownership and removal of improvements. No facilities lease shall be granted under this title unless it contains a provision which states that all buildings, landscaping, and all other improvements, except lessee’s equipment, shall become the property of the city upon expiration or termination of the lease. In the event that the city requires removal of such improvements, such removal shall be accomplished at the sole expense of the lessee and completed with full restoration of the site to the original condition or its practical equivalent as determined by the city, within 90 days after receiving written notice from the city requiring removal of the improvements. Further, inIn the event that utility, or telecommunications facilities or other equipment are left upon city property after expiration or termination of the lease, at the city’s option, the utility, telecommunications facilities or other such equipment they shall become the property of the city if not removed by the lessee after 30 days’ written notice from the city. However, the city does reserve the right to cause the removal of the facilities and equipment and restoration of the site for which lessee shall reimburse the city all costs of such removal and restoration plus ten percent of the cost to cure for administrative purposes within 30 days of written demand. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.110 Cancellation of lease by lessee. A. All facilities leases are contingent upon the prospective lessee obtaining all necessary permits, approvals, and licenses for the proposed facilities. In the event that the prospective lessee is unable to obtain all such permits, approvals, and ------------------------- ORD 6798 EXHIBIT C PAGE 106 of 152    licenses, it may cancel its lease, and obtain a pro rata refund in any rents paid, without further obligation by giving 30 days’ prior written notice to the city. B. In the event that the holder of a facilities lease determines that the city property is unsuitable for its intended purpose, the lessee shall have the right to cancel the lease upon 120 days’ written notice to the city. However, no prepaid rent shall be refundable. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.43020.08.120 Compliance with zoning standards. All uses proposed in applications for leases, franchises, and public way agreements under this title will comply with the city zoning regulations and siting standards in ACC Title 18 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.120 Compensation to the city. Each facilities lease granted under this title is subject to the city’s right, which is expressly reserved, to annually fix a fair and reasonable compensation to be paid for the rights granted to a lessee; provided, nothing in this title shall prohibit the city and a lessee from agreeing to the compensation to be paid. Such compensation shall be payable in advance of the effective date of the lease and on or before January 31st of each calendar year. Any payments received after the due date shall include a late payment penalty of two percent of the annual rental fee for each day or part thereof past the due date. If any or all of the rental fee is more than 60 calendar days delinquent, the lease will automatically terminate on the sixty-first calendar day of delinquency, and the city may proceed to collect against any security provided by the lessee. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 107 of 152    20.08.130 Amendment of facilities leaseRepealed. Except as provided within an existing lease agreement, a new lease application and lease agreement shall be required of any lessee that desires to expand, modify, or relocate its facilities or other equipment located upon city property. If the lessee is required by the city to locate or relocate its facilities or other equipment on the city property, the city shall grant a lease amendment without further application. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.140 Renewal of facilities leaseRepealed. A lessee that desires to renew its facilities lease in effect under this chapter shall, not more than 120 days nor less than 90 days before expiration of the facilities lease then in effect, file an application, which is determined as complete in accordance with ACC 20.08.030, with the city for renewal of its facilities lease which shall include the following: A. The information required pursuant to ACC 20.08.020; B. Any information required pursuant to the facilities lease agreement between the city and the lessee; C. All deposits or charges required pursuant to this chapter; D. A nonrefundable application renewal fee in the amount established in the city’s fee schedule. (Ord. 6718 § 4 (Exh. D), 2019; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.150 Determination by the city for renewal of facility leaseRepealed. All renewals of leases subject to this title shall be renewed in accordance with the provisions of ACC 20.08.030 and 20.08.040. Recognizing that the city council is under no obligation to approve a renewal of a facilities lease for the use of city ------------------------- ORD 6798 EXHIBIT C PAGE 108 of 152    property, the city council shall attempt to consider and take action on applications for renewal of such leases within 90 days after receiving a complete application for such a lease renewal. When such action is taken, the city shall issue a written determination granting or denying the lease renewal, in whole or in part. If the renewal application is denied, the written determination shall include the reason(s) for denial. The decision to grant or deny an application for renewal of a facilities lease shall be based upon, but not limited to, the following: A. The continuing capacity of the city property to accommodate the applicant’s existing facilities. B. The applicant’s compliance with the requirements of this title and the lease agreement. C. Such other factors as may demonstrate that the continued approval to use the city property ways will serve the community interest. D. Any criteria contained in ACC 20.08.040. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.08.160 Obligation to cure as a condition of renewalRepealed. No facilities lease shall be renewed until any ongoing violations or defaults in the lessee’s performance of the lease agreement, or of the requirements of this title, have been cured, or a plan, secured by bond or deposit account to the city’s satisfaction, detailing the corrective action to be taken by the lessee has been approved in writing by the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 109 of 152    Chapter 20.10 CONDITIONS OF PUBLIC WAY AGREEMENTS, FRANCHISES, AND FACILITIES LEASESREPEALED Sections: 20.10.010 Purpose. 20.10.020 Acceptance and effective date. 20.10.030 Police power. 20.10.040 Rules and regulations by the city. 20.10.050 Location of facilities. 20.10.060 Compliance with one number locator service. 20.10.070 Construction permits. 20.10.080 Interference with the public ways. 20.10.090 Damage to property. 20.10.100 Notice of work. 20.10.110 Repair and emergency work. 20.10.120 Maintenance of facilities. 20.10.130 Abandonment, relocation or removal of facilities. 20.10.140 Building moving. 20.10.150 Removal of unauthorized facilities. 20.10.160 Emergency removal or relocation of facilities. 20.10.170 Damage to facilities. 20.10.180 Restoration of public ways, other ways, city property and public/private utility property. 20.10.190 Facilities maps. 20.10.200 Duty to provide information. 20.10.210 Leased capacity. 20.10.220 Insurance. 20.10.230 General indemnification. 20.10.240 Performance and construction surety. 20.10.250 Security options. 20.10.260 Performance bond. ------------------------- ORD 6798 EXHIBIT C PAGE 110 of 152    20.10.270 Coordination of construction activities. 20.10.280 Assignments or transfers of public way agreements, franchises, or leases. 20.10.290 Transactions affecting control of public way agreements, franchises, or leases. 20.10.300 Revocation or termination of public way agreements, franchises, or leases. 20.10.310 Notice and duty to cure. 20.10.320 Public hearing. 20.10.330 Standards for revocation or lesser sanctions. 20.10.340 Civil penalties. 20.10.350 Enforcement. 20.10.360 Other remedies. 20.10.370 Venue of any court action. 20.10.380 Action by the FCC. 20.10.390 Incorporation by reference. 20.10.400 Notice of entry on private property. 20.10.410 Safety requirements. 20.10.420 Most favored community. 20.10.430 Compliance with zoning standards. 20.10.440 Unfunded mandate. 20.10.450 Care of trees along streets. 20.10.460 Use of utility poles and facilities of others. 20.10.470 Use of poles and facilities by city. 20.10.480 Administration. 20.10.010 Purpose. The purpose of this chapter is to set forth certain terms and conditions which are common to all public way agreements, franchises, and facilities leases granted under the provisions of this title. Except as otherwise provided in this chapter or in such a ------------------------- ORD 6798 EXHIBIT C PAGE 111 of 152    public way agreement, franchise, or lease, the provisions of this chapter apply to all such public way agreements, franchises, and leases approved or granted by the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.020 Acceptance and effective date. No public way agreement, franchise, or lease granted pursuant to the provisions of this title shall become effective unless and until the ordinance or other city action granting the same has become effective. Within 30 days after the effective date of the ordinance or other city action granting a public way agreement, franchise, or lease, or within such extended period of time as the council in its discretion may authorize, the applicant shall file with the city clerk an unconditional written acceptance of the public way agreement, franchise, or lease, in a form satisfactory to the city attorney, together with the bonds, insurance policies, and security fund required by this title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.030 Police power. In accepting and executing any public way agreement, franchise or lease, the grantee, franchisee, or lessee acknowledges that its rights thereunder are subject to the legitimate rights of the police power of the city to adopt and enforce general ordinances necessary to protect the safety, health, and welfare of the public, and agrees to comply with all applicable general laws enacted by the city pursuant to such power. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.040 Rules and regulations by the city. In addition to the inherent powers of the city to regulate and control any public way agreement, franchise, or lease granted, the authority granted to the city by the Cable Act and the Telecommunications Act of 1996, and those powers expressly reserved ------------------------- ORD 6798 EXHIBIT C PAGE 112 of 152    by the city, or agreed to and provided for in any public way agreement, franchise, or lease, the right and power is hereby reserved by the city to promulgate such additional regulations as it may find necessary in the exercise of its lawful powers giving due regard to the rights of grantees, franchisees, and lessees. Except as provided in this title, the foregoing does not allow for amendment by the city of material terms of any public way agreement, franchise, or lease granted without the written consent of the grantee, franchisee, or lessee. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.050 Location of facilities. All facilities shall be constructed, installed, and located in accordance with the following terms and conditions, unless otherwise specified in a public way agreement, franchise, or lease agreement. A. Unless otherwise provided in a public way agreement, franchise, or lease, a grantee, franchisee, or lessee with permission to occupy a public way must locate its cable or telecommunications facilities underground in accordance with ACC Title 18 and Chapter 13.32A ACC. B. Any newcomer in the public way must bear the full cost of discovering the location of any existing conflicts, coordination of the engineering plans to acquire the approvals of parties already in the public way, and relocating and/or mitigating such conflicts with preexisting facilities in conflict with the plans of the newcomer. C. Whenever the city requires, a grantee, franchisee, or lessee subject to this title, that currently occupies the public way shall relocate its facilities underground at no expense to the city. Such relocation shall be made concurrently with other planned work to minimize the disruption of the public ways as determined by the city engineer. D. Should the available capacity of public ways prevent new uses in the future, all persons subject to this title shall negotiate with any interested newcomer the means of creating new capacity as required by federal or state law. The parties shall arrive ------------------------- ORD 6798 EXHIBIT C PAGE 113 of 152    at a mutually supportable agreement and submit the same to the city for review and comment. The parties will incorporate any reasonable city requirements for approval, and resubmit the revised proposal for city council approval. If approved by the city council, the parties will bear all costs associated with the proposal, and obtain the necessary permits to execute the approved plan from the city in accordance with this title and Chapter 12.24 ACC. The city shall bear no costs associated with resolution of capacity shortages within the public ways. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.060 Compliance with one number locator service. All grantees, franchisees, and lessees shall, before commencing any construction in the public ways, comply with all regulations of Chapter 19.122 RCW, the One Number Locator Service. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.070 Construction permits. All grantees of public way agreements, franchisees, and lessees of city properties are required to obtain construction permits, as required in Chapter 12.24 ACC, for installing utility, cable and telecommunications facilities. However, nothing in this title shall prohibit the city and a grantee, franchisee, or lessee from agreeing to alternative plan review, permit, and construction procedures for a public way agreement, franchise, or lease granted under this title, provided such alternative procedures provide substantially equivalent safeguards for responsible construction practices. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.080 Interference with the public ways. No grantee, franchisee, or lessee may locate or maintain its utility, cable or telecommunications facilities so as to unreasonably interfere with the use of the ------------------------- ORD 6798 EXHIBIT C PAGE 114 of 152    public ways by the city, by the general public or by other persons authorized to use or be present in or upon the public ways. All such facilities which unreasonably interfere with the use of the city’s public ways as determined by the public works director, shall be moved in accordance with provisions in ACC 20.10.130, by the grantee, franchisee, or lessee, at the grantee, franchisee, or lessee’s cost, temporarily or permanently, as determined by the public works director. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.090 Damage to property. No grantee, franchisee, or lessee, nor any person acting on behalf of a grantee, franchisee, or lessee shall take any action or permit any action to be taken which may impair or damage any city property, public ways of the city, other ways or other property, whether publicly or privately owned, located in, on or adjacent thereto. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.100 Notice of work. Unless otherwise provided in a public way agreement, franchise, or lease agreement, no grantee, franchisee, or lessee, nor any person acting on behalf of the grantee, franchisee, or lessee shall commence any nonemergency work in or about the public ways of the city, other ways, or upon city property without 10 working days’ advance written notice to the city which notice shall include the location of the work to be done, a detailed description of the work to be done, and a schedule for completion. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.110 Repair and emergency work. In the event of an emergency, a grantee, franchisee, or lessee may commence such repair and emergency response work as required under the circumstances, provided ------------------------- ORD 6798 EXHIBIT C PAGE 115 of 152    the grantee, franchisee, or lessee shall notify the city in writing as promptly as possible, before such repair or emergency work commences or as soon thereafter as possible if advance notice is not practicable. The city may act without prior written notice in case of emergency. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.120 Maintenance of facilities. Each grantee, franchisee, or lessee shall maintain its facilities in good and safe condition and in a manner that complies with all applicable federal, state and local requirements. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.130 Abandonment, relocation or removal of facilities. Within 30 days following written notice from the city, a grantee, franchisee, or lessee shall, at its sole expense, temporarily or permanently remove, relocate, change, or alter the position of any commercial utility, cable or telecommunications facilities within the public ways or upon city property whenever the city public works director shall have determined that such removal, relocation, change, or alteration is reasonably necessary for: A. The construction, repair, maintenance, or installation of any city or other public improvement in or upon the public ways; and B. The operations of the city, utility providers, or other governmental entity in or upon the public ways; and C. Facilities are deemed by the city as abandoned due to failure to cure of the grantee, franchisee, or lessee. However, in the event such relocation is required due to emergency repairs deemed necessary by the city, such relocation or moving shall be accomplished within 24 hours. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 116 of 152    20.10.140 Building moving. Whenever any person shall have obtained permission from the city to use any street or public way for the purpose of moving any building, a grantee, franchisee, or lessee, upon seven calendar days’ written notice from the city, shall raise or remove, at the expense of the person desiring to move the building, any of the grantee, franchisee, or lessee’s utility wires, poles, or facilities which may obstruct the moving of such building; provided, that the person desiring to move the building shall comply with all requirements of the city for the moving of buildings. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.150 Removal of unauthorized facilities. Within 30 days following written notice from the city, any commercial utility, telecommunications carrier, operator, lessee or other person who owns, controls, or maintains any unauthorized cable or telecommunications system, facility, or related appurtenances within the public ways or upon property of the city shall, at its own expense, remove such facilities or appurtenances from the public ways of the city. A utility, cable or telecommunications system or facility is unauthorized and subject to removal in the following circumstances: A. Upon expiration or termination of the grantee, lessee, or franchisee’s public way agreement, franchise, or lease; B. Upon leaving any system or facility within the public ways or upon property of the city, any such property of a grantee, franchisee, or lessee shall be deemed abandoned if left in place 90 days after expiration or termination of a public way agreement, franchise, or lease; C. If the system or facility was constructed or installed without the prior approval of a public way agreement, franchise or lease; ------------------------- ORD 6798 EXHIBIT C PAGE 117 of 152    D. If the system or facility was constructed or installed without the prior issuance of a required construction permit; E. If the system or facility was constructed or installed at a location not permitted by a public way agreement, franchise or lease. Provided, however, that the city may, in its sole discretion, allow a grantee, franchisee, or lessee or other such persons who may own, control, use, or maintain commercial utility, cable or telecommunications facilities within the public ways of the city or upon city property to abandon such facilities in place. No facilities of any type may be abandoned in place without the express written consent of the city. Any plan for abandonment or removal of a grantee’s, franchisee’s, or lessee’s facilities must be first approved by the public works director, and all necessary permits must be obtained prior to such work. Upon permanent abandonment in place of the facilities such facilities shall become the city’s property, and such persons shall submit to the city an instrument in writing, to be approved by the city attorney, transferring to the city the ownership of such property. The provisions of this section shall survive the expiration, revocation, or termination of a public way agreement, franchise, or lease granted under this title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.160 Emergency removal or relocation of facilities. The city retains the right and privilege to cut or move any commercial utility, cable or telecommunications facilities located within the public ways of the city and upon city property, as the city may determine to be necessary, appropriate or useful in response to any public health or safety emergency. The city shall not be liable to any utility, cable operator, telecommunications carrier, operator, or provider, or any other party 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. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 118 of 152    20.10.170 Damage to facilities. Unless directly and proximately caused by the willful, intentional, or malicious acts by the city, the city shall not be liable for any damage to or loss of any commercial utility, cable, or telecommunications facilities upon city property or within the public ways of the city as a result of or in connection with any public works, public improvements, construction, excavation, grading, filling, or work of any kind on such city property or within the public ways by or on behalf of the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.180 Restoration of public ways, other ways, city property and public/private utility property. A. When a grantee, franchisee, lessee, or any person acting on behalf such persons, does any work in or affecting any public ways, other ways, city property, or public/private utilities located in the public ways, it shall, at its own expense, promptly remove any obstructions therefrom and restore such ways or property to as good a condition as existed before the work was undertaken, unless otherwise directed by the city. B. If weather or other conditions do not permit the complete restoration required by this section, or other city codes, regulations or policies, the grantee, franchisee, or lessee shall temporarily restore the affected public ways, other ways, or property. Such temporary restoration shall be at the grantee’s, franchisee’s, or lessee’s sole expense and the grantee, franchisee, or lessee shall promptly undertake and complete the required permanent restoration when the weather or other conditions no longer prevent such permanent restoration. C. A grantee, franchisee, lessee or other person acting on behalf of such persons shall use suitable barricades, flags, flagmen, lights, flares, and other measures as required for the safety of all members of the general public and to prevent injury or ------------------------- ORD 6798 EXHIBIT C PAGE 119 of 152    damage to any person, vehicle, or property by reason of such work in or affecting such public ways, other ways, or property. D. The public works director shall be responsible for inspection and final approval of the condition of the public ways, other ways, and city property following any construction and restoration activities therein. Further, the provisions of this section shall survive the expiration, revocation, or termination of a public way agreement, franchise, lease, or other agreement granted pursuant to this title or Chapter 12.24 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.190 Facilities maps. Each grantee, franchisee, and lessee shall provide the city with a map or maps accurately reflecting the horizontal and vertical location and configuration of all of their commercial utility or telecommunications facilities within the public ways and upon city property. Each grantee, franchisee, and lessee shall provide the city with updated maps annually or upon written request by the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.200 Duty to provide information. Within 10 working days of a written request from the city, each grantee, franchisee, or lessee shall furnish the city with information sufficient to demonstrate: A. That the grantee, franchisee, or lessee has complied with all requirements of this title; and B. That all sales, utility and/or telecommunications or other taxes or assessments due the city in connection with the commercial utility, cable, or telecommunications services and facilities provided by the grantee, franchisee, or lessee have been properly collected and paid by the grantee, franchisee, or lessee. ------------------------- ORD 6798 EXHIBIT C PAGE 120 of 152    All books, records, maps and other documents, maintained by the grantee, franchisee, or lessee with respect to its utility or telecommunications facilities within the public ways and upon city property shall be made available for inspection by the city at reasonable times and intervals; provided, however, that nothing in this section shall be construed to require a grantee, franchisee, or lessee to violate state or federal law regarding subscriber privacy, nor shall this section be construed to require a grantee, franchisee, or lessee to disclose proprietary or confidential information without adequate safeguards for its confidential or proprietary nature. Such information shall be held in strict confidence, as allowed by law, by the city and used only for the purpose stated herein. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.210 Leased capacity. A grantee, franchisee, or lessee shall have the right to offer or provide capacity or bandwidth to its customers consistent with such permit, franchise, or lease; provided: A. The grantee, franchisee, or lessee shall furnish the city with a copy of any such lease or agreement between the grantee, franchisee, or lessee and the customer or sub-lessee or provide to the city’s finance director sufficient information to determine whether the lessee or customer is subject to city taxes or assessments; and B. The sub-lessee fulfills all requirements of Chapters 3.84 and 3.88 ACC regarding the reporting of all revenues subject to city taxes and assessments; and C. Lessee must comply with the city’s registration requirements in Chapter 5.84 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.220 Insurance. Unless otherwise provided in a public way agreement, franchise, or lease agreement, each grantee, franchisee, or lessee shall, as a condition of the permit or public way agreements, franchises, or leases, secure, and maintain the following liability ------------------------- ORD 6798 EXHIBIT C PAGE 121 of 152    insurance policies insuring both the grantee, franchisee, or lessee and the city, and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volunteers as additional insureds against claims for injuries to persons or damages to property which may arise from or in connection with the exercise of the rights, privileges, and authority granted to the grantee, franchisee, or lessee: A. Comprehensive general liability insurance, written on an occurrence basis, with limits not less than: 1. Five million dollars for bodily injury or death to each person; 2. Five million dollars for property damage resulting from any one accident; and 3. Five million dollars for all other types of liability; B. Automobile liability for owned, nonowned and hired vehicles with a limit of $3,000,000 for each person and $3,000,000 for each accident; C. Worker’s compensation within statutory limits and employer’s liability insurance with limits of not less than $1,000,000; D. Comprehensive form premises-operations, explosions and collapse hazard, underground hazard and products completed hazard with limits of not less than $3,000,000; E. The liability insurance policies required by this section shall be maintained by the grantee, franchisee, or lessee throughout the term of the public way agreement, franchise, or lease, and such other period of time during which the grantee, franchisee, or lessee is operating without a public way agreement, franchise, or lease hereunder, or is engaged in the removal of its telecommunications facilities. The grantee, franchisee, or lessee shall provide an insurance certificate, together with an endorsement naming the city, and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volunteers as additional insureds, to the city prior to the commencement of any work or installation of any ------------------------- ORD 6798 EXHIBIT C PAGE 122 of 152    utility or telecommunications facilities pursuant to said public way agreement, franchise, or lease. Any deductibles or self-insured retentions must be declared to and approved in writing by the city prior to the franchise becoming effective. Payment of deductibles and self-insured retentions shall be the sole responsibility of the grantee, franchisee, or lessee. The insurance certificate required by this section shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. The grantee, franchisee, or lessee’s insurance shall be primary insurance as respects the city, its officers, officials, employees, agents, consultants, and volunteers. Any insurance maintained by the city, its officers, officials, employees, consultants, agents, and volunteers shall be in excess of the grantee, franchisee, or lessee’s insurance and shall not contribute with it; F. In addition to the coverage requirements set forth in this section, each such insurance policy shall contain the following endorsement: It is hereby understood and agreed that this policy may not be canceled nor the intention not to renew be stated until 60 days after receipt by the City, by registered mail, (return receipt requested) of a written notice addressed to the City Clerk of such intent to cancel or not to renew. G. Within 30 days after receipt by the city of said notice, and in no event later than 15 days prior to said cancellation or intent not to renew, the grantee, franchisee, or lessee shall obtain and furnish to the city replacement insurance policies meeting the requirements of this section. Any lapse in the required insurance coverage shall be cause for termination of any public way agreement, franchise, or lease. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 123 of 152    20.10.230 General indemnification. No public way agreement, franchise, or lease shall be deemed to be granted under this title unless it includes an indemnity clause substantially conforming to the following: The grantee, franchisee, or lessee hereby releases, covenants not to bring suit and agrees to indemnify, defend and hold harmless the City, its elected and appointed officials, officers, employees, agents, representatives, engineers, and consultants from any and all claims, costs, judgments, awards, or liability to any person, including claims by the grantee, franchisee, or lessee’s own employees to which the grantee, franchisee, or lessee might otherwise be immune under RCW Title 51, arising from injury or death of any person or damage to property of which the negligent acts or omissions of the grantee, franchisee, or lessee, its agents, servants, officers, or employees in performing under this Public Way Agreement, franchise, or lease are the proximate cause. The grantee, franchisee, or lessee further releases, covenants not to bring suit and agrees to indemnify, defend and hold harmless the City, its elected and appointed officials, officers, employees, agents, representatives, engineers, and consultants from any and all claims, costs, judgments, awards, or liability to any person including claims by the grantee, franchisee, or lessee’s own employees, including those claims to which the grantee, franchisee, or lessee might otherwise have immunity under RCW Title 51, arising against the City solely by virtue of the City’s ownership or control of the rights-of-way or other public properties, by virtue of the grantee, franchisee, or lessee’s exercise of the rights granted herein, or by virtue of the City’s permitting the grantee, franchisee, or lessee’s use of the City’s rights-of-way or other public property, based upon the City’s inspection or lack of inspection of work performed by the grantee, franchisee, or lessee, its agents and servants, officers or employees in connection with work authorized on the City’s property or property over which the City has control, pursuant to this Public Way Agreement, franchise, or lease, or pursuant to any other permit or approval issued in connection with this Public ------------------------- ORD 6798 EXHIBIT C PAGE 124 of 152    Way Agreement, Franchise, or Lease. This covenant of indemnification shall include, but not be limited by this reference, claims against the City arising as a result of the negligent acts or omissions of the grantee, franchisee, or lessee, its agents, servants, officers, or employees in barricading, instituting trench safety systems or providing other adequate warnings of any excavation, construction, or work in any public right-of-way or other public place in performance of work or services permitted under this Public Way Agreement, Franchise, or Lease. Inspection or acceptance by the City of any work performed by the grantee, franchisee, or lessee at the time of completion of construction shall not be grounds for avoidance of any of these covenants of indemnification. Said indemnification obligations shall extend to claims which are not reduced to a suit and any claims which may be compromised prior to the culmination of any litigation or the institution of any litigation. In the event that the grantee, franchisee, or lessee refuses the tender of defense in any suit or any claim, said tender having been made pursuant to the indemnification clauses contained herein, 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 the grantee, franchisee, or lessee, then the grantee, franchisee, or lessee shall pay all of the City’s costs for defense of the action, including all reasonable expert witness fees and reasonable attorneys’ fees and the reasonable costs of the City, including reasonable attorneys’ fees of recovering under this indemnification clause. In the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the grantee, franchisee, or lessee, and the City, its officers, employees and agents, the grantee, franchisee, or lessee’s liability hereunder shall be only to the extent of the grantee, franchisee, or lessee’s negligence. It is further specifically and expressly understood that the indemnification provided herein ------------------------- ORD 6798 EXHIBIT C PAGE 125 of 152    constitutes the grantee, franchisee, or lessee’s waiver of immunity under RCW Title 51, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of any Public Way Agreement, Franchise, or Lease agreement. Notwithstanding any other provisions of this Title, the grantee, franchisee, or lessee assumes the risk of damage to its facilities located in the City’s public ways, rights-of-way, easements, and property from activities conducted by the City, its officers, agents, employees, and contractors. The grantee, franchisee, or lessee releases and waives any and all claims against the City, its officers, agents, employees, or contractors for damage to or destruction of the grantee, franchisee, or lessee’s facilities caused by or arising out of activities conducted by the city, its officers, agents, employees, and contractors, in the public ways, rights-of-way, easements, or property subject to this Public Way Agreement, Franchise, or Lease, except to the extent any such damage or destruction is caused by or arises from the sole negligence or any willful or malicious action on the part of the City, its officers, agents, employees, or contractors. The grantee, franchisee, or lessee 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 the grantee, franchisee, or lessee’s facilities as the result of any interruption of service due to damage or destruction of the user’s facilities caused by or arising out of activities conducted by the City, its officers, agents, employees, or contractors, except to the extent any such damage or destruction is caused by or arises from the sole negligence or any willful or malicious actions on the part of the City, its officers, agents, employees, or contractors. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 126 of 152    20.10.240 Performance and construction surety. Before a public way agreement, franchise, or lease granted pursuant to this title is effective, and as necessary thereafter, the grantee, franchisee, or lessee shall provide and deposit such moneys, bonds, letters of credit, or other instruments in form and substance acceptable to the city as may be required by this title or by an applicable public way agreement, franchise, or lease agreement. All performance bonds for grantees, franchisees, and lessees shall satisfy the minimum standards established by the public works department at the time of the grantees’, franchisees’, and lessees’ application. (Construction bond section(s) of Standard Specifications for Road, Bridge, and Municipal Construction for Washington State Department of Transportation and American Public Works Association). Construction bonds sureties shall be provided as required by Washington State laws. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.250 Security options. In order to secure the conditions agreed to in any agreement negotiated under this title, for the full term of such agreements, each grantee, franchisee, or lessee shall establish a permanent security bond, assignment of funds, or an unconditional letter of credit from a Washington State bank with the city by either providing the city engineer a standing warranty bond or by depositing the amount of funds as follows in a Washington state bank utilizing the city’s standard assignment form, or by provision of the letter of credit. The amount of security shall be 10 percent of the city engineer’s estimate of the performance bond amount (ACC 20.10.260) based upon the total scope of work proposed within the public ways, or $50,000, whichever is less, or such lesser amount determined by the public works director to be sufficient. The security shall be maintained at the sole expense of the grantee, franchisee, or lessee so long as any of the grantee, franchisee, or lessee’s utility, cable or telecommunications facilities are located within the public ways of the city or upon city property and until released by the city. In the event a security involves a bank, ------------------------- ORD 6798 EXHIBIT C PAGE 127 of 152    the grantee, franchisee, or lessee is responsible for negotiating any interest that may accrue to the account during the duration of effect. Should the agreement being secured be terminated, the finance director will coordinate with other departments and determine if any portion of the security may be released by the city. A. The security shall secure the full and complete performance of the requirements of this title, including any costs, expenses, damages, or loss the city pays or incurs, including civil penalties, because of any failure attributable to the grantee, franchisee, or lessee to comply with any applicable legal requirements including, but not limited to, the codes, ordinances, rules, regulations, or permits of the city. B. Before the city executes on the security bond or any sums are withdrawn from the security fund, the city shall give written notice to the grantee, franchisee, or lessee: 1. Describing the act, default or failure to be remedied, or the damages, costs or expenses which the city has incurred by reason of grantee, franchisee, or lessee’s act, default, or failure; 2. Providing a reasonable opportunity for grantee, franchisee, or lessee to first remedy the existing or ongoing default or failure, if applicable; 3. Providing a reasonable opportunity for grantee, franchisee, or lessee to pay any moneys due the city before the city executes the bond or withdraws the amount thereof from the security fund, if applicable; and 4. That the grantee, franchisee, or lessee will be given an opportunity to review the act, default or failure described in the notice with the city or designee. C. Grantees, franchisees and lessees shall replenish the security bond or fund within 14 calendar days after written notice from the city that there is a deficiency in the amount of the bond or fund. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 128 of 152    20.10.260 Performance bond. All performance bonds provided in accordance with this title shall comply with the minimum standards in Chapter 12.24 ACC. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.270 Coordination of construction activities. ACC 20.10.100 notwithstanding, all grantees, franchisees and lessees, are required to cooperate with the city and with each other. A. By November 15th of each year, grantees, franchisees and lessees shall provide the city with a schedule of their proposed construction activities which may affect the public ways in any manner. B. Each grantee, franchisee and lessee shall meet with the city, other grantees and franchisees and users of the public ways annually or as determined by the city to schedule and coordinate construction which may affect the public ways in any manner. C. All construction locations, activities and schedules shall be coordinated, as required by the city public works director, to minimize public inconvenience, disruption or damages. D. Each grantee, franchisee and lessee shall be available to city staff employees of a city department having jurisdiction over their respective activities 24 hours a day, seven days a week, regarding problems or complaints resulting from the attachment, installation, operation, use, maintenance, or removal of commercial utility or telecommunications system facilities. The city must be able to contact by telephone the network control center of each grantee, franchisee and lessee. A telephone number at which an employee can be reached 24 hours a day, seven days a week regarding such problems or complaints must be provided by each grantee, franchisee ------------------------- ORD 6798 EXHIBIT C PAGE 129 of 152    and lessee before any public way agreement, franchise, or lease is effective. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.280 Assignments or transfers of public way agreements, franchises, or leases. The assignment or transfer of any business registration, public way agreement, franchise or lease subject to this title may not, directly or indirectly, be transferred, assigned or disposed of by sale, lease, merger, consolidation or other act of the grantee, franchisee, or lessee, by operation of law or otherwise, without the prior written consent of the city, which consent shall not be unreasonably withheld or delayed, except as expressed by ordinance and then only on such reasonable conditions as may be prescribed therein. A. No public way agreement, franchise, or lease, subject to this title, shall be assigned or transferred before construction of such systems has been completed to the city’s satisfaction without prior written consent of the city, which consent shall not be unreasonably withheld or delayed, except as expressed by ordinance and then only on such reasonable conditions as may be prescribed therein. B. The grantee, franchisee, or lessee and the proposed assignee or transferee of the public way agreement, franchise, or lease shall provide and certify the following information to the city not less than 90 calendar days prior to the proposed date of transfer: 1. Complete information setting forth the nature, terms and conditions of the proposed transfer or assignment relating to the public way agreement, franchise or lease; 2. All information required by a public way agreement, franchise, or lease applicant pursuant to this title with respect to the proposed transferee or assignee; ------------------------- ORD 6798 EXHIBIT C PAGE 130 of 152    3. Any other information reasonably required by the city; and 4. A nonrefundable application fee in the amount established in the city’s fee schedule. C. No transfer shall be approved unless the assignee or transferee meets the requirements contained in ACC 20.04.040(A) and (I) and can comply with the requirements of the public way agreement, franchise, or lease. D. Unless otherwise provided in a public way agreement, franchise, or lease agreement, the grantee, franchisee, or lessee 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 a public way agreement, franchise, or lease. No approval shall be deemed approved until all such costs and expenses have been paid. E. Any transfer or assignment of a public way agreement, franchise, or lease without prior written approval of the city under this section or pursuant to a public way agreement, franchise, or lease agreement shall be void and is cause for termination of the public way agreement, franchise, or lease. (Ord. 6718 § 5 (Exh. E), 2019; Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.290 Transactions affecting control of public way agreements, franchises, or leases. Any transactions which singularly or collectively result in a change of 50 percent or more of the ownership or working control of any grantee, franchisee, or lessee of the ownership or working control of a utility, cable, or telecommunications system, of the ownership or working control of affiliated entities having ownership or working control of the grantee, franchisee, or lessee or of a telecommunications system, or of control of the capacity or bandwidth of the grantee, franchisee, or lessee’s utility, cable, or telecommunications system, facilities or substantial parts thereof, shall be considered an assignment or transfer requiring city approval pursuant to ACC 20.10.280. ------------------------- ORD 6798 EXHIBIT C PAGE 131 of 152    Transactions between affiliated entities are not exempt from the required city approval. A grantee, franchisee, or lessee shall promptly notify the city in writing prior to any proposed change in, or transfer of, or acquisition by any other party of control of a grantee’s, franchisee’s, or lessee’s company. Every change, transfer, or acquisition of control of a grantee’s, franchisee’s, or lessee’s company shall cause a review of the proposed transfer. In the event that the city council adopts a resolution or other appropriate order opposing such change, transfer or acquisition of control has been effected, the city may terminate the public way agreement, franchise, or lease. City approval shall not be required for mortgaging purposes or if said transfer is from a grantee, franchisee, or lessee to another person or entity controlling, controlled by, or under common control with a grantee, franchisee, or lessee. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.300 Revocation or termination of public way agreements, franchises, or leases. A public way agreement, franchise, or lease granted by the city to use or occupy public ways of the city or city property may be terminated or revoked for the following reasons: A. Construction or operation in the city or in the public ways of the city or upon city property without a public way agreement, franchise, or lease; B. Construction or operation at an unauthorized location; C. Unauthorized substantial transfer of control of a grantee, franchisee, or lessee; D. Unauthorized assignment of a public way agreement, franchise, or lease; E. Unauthorized sale, assignment or transfer of a grantee’s, franchisee’s, or lessee’s public way agreement, franchise, lease, assets, or a substantial interest therein; ------------------------- ORD 6798 EXHIBIT C PAGE 132 of 152    F. Misrepresentation or lack of candor by or on behalf of a grantee, franchisee, or lessee in any application or written or oral statement upon which the city relies in making the decision to approve, review or amend any public way agreement, franchise, or lease pursuant to this title; G. Abandonment of cable or telecommunications facilities in the public ways or upon city property; H. Failure to relocate or remove facilities as required in this title; I. Failure to pay taxes, compensation, fees, assessments, or costs when and as due to the city; J. Insolvency or bankruptcy of the grantee, franchisee, or lessee; K. Violation of any material provision of this title; and L. Violation of the material terms of a public way agreement, franchise, or lease agreement. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.310 Notice and duty to cure. In the event that the city believes that grounds exist for termination or revocation of a public way agreement, franchise, or lease, the grantee, franchisee, or lessee shall be given written notice of the apparent violation or noncompliance, providing a short and concise statement of the nature and general facts of the violation or noncompliance, and providing the grantee, franchisee, or lessee a reasonable period of time not exceeding 30 days to correct the violation or furnish evidence as to: A. That corrective action has been, or is being actively and expeditiously pursued, to remedy the violation or noncompliance; or B. That rebuts the alleged violation or noncompliance; or ------------------------- ORD 6798 EXHIBIT C PAGE 133 of 152    C. That it would be in the public interest to impose some penalty or sanction less than revocation. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.320 Public hearing. In the event that a grantee, franchisee, or lessee fails to respond to the notice described in ACC 20.10.310 pursuant to the procedures set forth therein, or in the event that the alleged violation is not remedied within the prescribed period of time after notification of the alleged violation pursuant to ACC 20.10.310, the city council shall schedule a public hearing to investigate the violation. Such public hearing shall be held at the next regularly scheduled hearing of the city council which is scheduled at a time which is no less than five business days therefrom. The city shall notify the grantee, franchisee, or lessee of the time and place of such public hearing and provide the grantee, franchisee, or lessee with an opportunity to be heard. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.330 Standards for revocation or lesser sanctions. If the city council determines that a grantee, franchisee, or lessee willfully violated or failed to comply with any of the provisions of this title or any provision of a public way agreement, franchise, or lease granted under this title, or through willful misconduct or gross negligence failed to heed or comply with any notice given the grantee, franchisee, or lessee by the city under the provisions of this title, then the grantee, franchisee, or lessee shall, at the election of the city council, forfeit all rights conferred under the public way agreement, franchise, or lease, and the public works agreement, franchise, or lease may be revoked, terminated, or annulled by the city council. The city council may elect, in lieu of revocation, termination, or annulment, and without any prejudice to any of its other legal rights and remedies, to pursue other remedies, including obtaining an order from the superior court having jurisdiction compelling the grantee, franchisee, or lessee to comply with the provisions of this title and any public way agreement, franchise, or lease granted ------------------------- ORD 6798 EXHIBIT C PAGE 134 of 152    hereunder, and to recover reasonable and documented damages and costs incurred by the city by reason of the grantee, franchisee, or lessee’s failure to comply. The city council shall utilize, but is not limited to, the following factors in analyzing the nature, circumstances, extent, and gravity of any violation(s) in making its determination under this section: A. Whether the misconduct was egregious; B. Whether substantial harm resulted; C. Whether the violation was intentional; D. Whether there is a history of prior violations of the same or other requirements; E. Whether there is a history of overall compliance; F. Whether the violation was voluntarily disclosed, admitted or cured. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.340 Civil penalties. A. Any person, and the officers, directors, managing agents, or partners of any corporation, firm, partnership or other organization or business violating or failing to comply with any of the provisions of this title shall be subject to a penalty in an amount not less than $100.00 nor more than $1,000 per day for each violation from the date of each violation until compliance is achieved. B. In addition to any penalty which may be imposed by the city council, any person violating or failing to comply with any of the provisions of this title shall be liable for all damage to public or private property arising from such violation, including the cost of restoring the affected area to its condition prior to the violation. C. The violator may show the city council as full or partial mitigation: ------------------------- ORD 6798 EXHIBIT C PAGE 135 of 152    1. That the violation giving rise to the action was caused by the willful act, or neglect, or abuse of another; or 2. That correction of the violation was commenced promptly upon receipt of the notice thereof, but that full compliance within the time specified was prevented by inability to obtain necessary materials or labor, inability to gain access to the subject structure, or other condition or circumstance beyond the control of the violator. D. The penalties which may be imposed by this section shall be collected by civil action brought by the city if not paid timely after penalty assessment by the city council. The public works director or designee shall notify the finance director in writing of the name of any person subject to the penalty, and the finance director shall take appropriate action to collect the penalty. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.350 Enforcement. Subject to applicable federal and state law, in the event the city council, after such public hearing, determines that a grantee, franchisee, or lessee is in default of any provision of a public way agreement, franchise, or lease, it may: A. Require foreclosure on all or any part of any security provided under this title, or a specific public way agreement, franchise, or lease, if any, including without limitation, any bonds or other surety; provided, however, the foreclosure shall only be in such a manner and in such amount as the city reasonably determines is necessary to remedy the default; B. Call for commencement of an action at law for monetary damages or other equitable relief; ------------------------- ORD 6798 EXHIBIT C PAGE 136 of 152    C. After the expiration of said 30-day period to cure violation (ACC 20.10.310), the city may be directed to act to remedy the violation and charge the reasonable and documented costs and expenses of such action to the grantee, franchisee, or lessee; D. In the case of a material breach of the public way agreement, franchise, or lease, declare the public way agreement, franchise, or lease to be terminated or revoked; E. Seek specific performance of any provision, which reasonably lends itself to such remedy, as an alternative to damages; F. Grantees, franchisees, or lessees shall not be relieved of any obligations to comply promptly with any provision of a public way agreement, franchise, or lease by reason of any failure of the city to promptly enforce compliance; G. In addition to other remedies provided herein, if a grantee, franchisee, or lessee is not in compliance with requirements of this title, and if a good faith dispute does not exist concerning such compliance, the city may place a moratorium on issuance of any pending permits until compliance is achieved; H. A grantee, franchisee, or lessee shall not be held in default or noncompliance with the provisions of a public way agreement, franchise, or lease nor suffer any enforcement or penalty relating thereto, where such noncompliance or alleged defaults are caused by strikes, acts of God, power outages, or other events reasonably beyond its ability to control; I. Assess civil penalties pursuant to ACC 20.10.340; J. The city may seek legal or equitable relief to enjoin any acts or practices and abate any condition which constitutes or will constitute a violation of the applicable provisions of this title when civil penalties are inadequate to effect compliance; K. In addition to the penalties set forth in this section, violation of the terms of this title may also result in the revocation or termination of any public way agreement, franchise, approval, lease, or permit issued or granted hereunder, as set forth in ACC 20.10.300 through 20.10.340. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 137 of 152    20.10.360 Other remedies. Nothing in this title shall be construed as limiting any judicial remedies that the city may have, at law or in equity, for enforcement of this title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.370 Venue of any court action. All public way agreements, franchises, and leases subject to this title shall be governed and construed by and in accordance with the laws of the state of Washington. In the event that suit is brought by a party to a public way agreement, franchise, or lease subject to this title, the parties agree that jurisdiction of such action shall be vested exclusively in the King County Superior Court for the State of Washington, or in the United States District Court for the Western District of Washington located in Seattle, Washington. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.380 Action by the FCC. In the event the FCC promulgates more stringent notice requirements, technical standards, consumer protection or consumer services requirements than are contained in agreements or franchises subject to this title, those more stringent requirements shall prevail. The city shall give reasonable written notice when, in their determination, that has occurred. Grantees, franchisees, and lessees shall retain and not waive any or all rights and privileges as afforded either under existing contracts or agreements or pursuant to federal law or FCC regulations to complain and/or appeal such a determination. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 138 of 152    20.10.390 Incorporation by reference. The provisions of this chapter shall be incorporated by reference in any public way agreement, franchise, or lease approved hereunder. The provisions of this chapter shall be incorporated by reference in any proposal submitted and accepted by the city in the applicable public way agreement, franchise, or lease. However, in the event of any conflict between the proposal, this chapter, and the public way agreement, franchise, or lease, the public way agreement, franchise, or lease shall be the prevailing document. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.400 Notice of entry on private property. If directed by the city, a grantee, franchisee, or lessee shall, at least 24 hours prior to entering private property or streets or public easements adjacent to or on such private property to perform new construction or reconstruction, provide a notice indicating the nature and location of the work to be performed. The notice shall be physically posted, at no expense to the city or private property owner or resident, upon the affected property by the grantee, franchisee, or lessee. A door hanger may be used to comply with the notice and posting requirements of this section. A grantee, franchisee, or lessee 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; provided, however, that nothing in this title shall permit a grantee or franchisee to unlawfully enter or construct improvements upon the property or premises of another. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.410 Safety requirements. A grantee, franchisee, or lessee, in accordance with applicable federal, state, and local safety requirements shall, at all times, employ ordinary care and shall install and ------------------------- ORD 6798 EXHIBIT C PAGE 139 of 152    maintain and use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injury, or nuisance to the public and/or workers. All structures and all lines, equipment and connections in, over, under, and upon the streets, sidewalks, alleys, and public ways or places of a permit, public way agreement, franchise, or lease area, wherever situated or located, shall at all times be kept and maintained in a safe, suitable condition, and in good order and repair. The city reserves the general right to see that the telecommunications systems of a grantee, franchisee, or lessee are constructed and maintained in a safe condition. If a violation of the National Electrical Safety Code or other applicable regulation is found to exist by the city, the city will, after discussions with a grantee, franchisee, or lessee, establish a reasonable time frame for a grantee, franchisee, or lessee to make necessary repairs. If the repairs are not made within the established time frame, the city may make the repairs itself or have them made and collect all reasonable costs thereof from a grantee, franchisee, or lessee. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.420 Most favored community. In the event that a grantee, franchisee, or lessee enters into any agreement, franchise or other understanding with any other city, town or county in the state of Washington which provides terms or conditions more favorable to the city, town or county than those provided in its agreement with the city, such as, but not limited to, free or reduced fee hookups, access or service, the city shall be entitled to request at the city’s option, and the grantee, franchisee, or lessee in question shall be required to execute, an amendment to its agreement which incorporates the more favorable terms and conditions at the grantee’s, franchisee’s, or lessee’s lowest comparable rate applicable to any government body or municipality in the state of Washington. (See ACC 20.06.180(N), Best Rates). (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 140 of 152    20.10.430 Compliance with zoning standards. All applications for leases, franchises, and public way agreements under this title will comply with the city zoning regulations and siting standards in ACC Title 18. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.440 Unfunded mandate. The city intends that no federal or state requirement to promote the deregulation of utilities or telecommunications shall become an unfunded mandate requiring funding support from the city over and above its routine operations and maintenance budget to maintain the public ways. Therefore, except as expressly provided to the contrary, all costs incurred by a grantee, franchisee, or lessee in complying with the terms and conditions of any agreement subject to this title or any applicable laws, ordinances, codes, rules, regulations and/or orders or any action thereunder shall be the sole responsibility of the respective grantee, franchisee, or lessee and shall not be the responsibility of or charged to the city. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.450 Care of trees along streets. Upon prior written approval of the city and in accordance with city ordinances, any grantee, franchisee, or lessee shall have the authority to trim trees upon and overhanging streets, public ways and places in the franchise area so as to prevent the branches of such trees from coming in physical contact with the facilities of the respective grantee, franchisee, or lessee. The grantee, franchisee, or lessee shall be responsible for debris removal from such activities. If such debris is not removed within 24 hours, the city may, at its sole discretion, remove such debris and charge the grantee, franchisee, or lessee for the cost thereof. This section does not, in any instance, grant automatic authority to clear vegetation for purposes of providing a clear path for radio signals. Any such general vegetation clearing will require a city land clearing permit. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 141 of 152    20.10.460 Use of utility poles and facilities of others. Grantees and franchisees may seek to contract with the city or any appropriate board or agency thereof or with the holder or owner of any utility franchise in the city for the use, rental or lease of its or their poles and other structures and facilities for the purpose of extending, carrying or laying telecommunications facilities, electronic conductors and other facilities and appurtenances necessary or desirable in conjunction with the operation of its telecommunications system. The city agrees that any public utility owning or controlling such poles or other structures or facilities may, without amendment to its franchise, allow, and is encouraged to allow, grantees and franchisees to make such use thereof pursuant to any agreement reached between the affected parties. City-owned poles are limited to street light and traffic signal poles which generally are not intended for use by others. The city reserves the right to determine on a case-by-case basis that particular circumstances require that a certain city-owned pole is not appropriate for use. No grantee or franchisee will utilize any city-owned poles prior to approval by the city engineer. Any compensation for uses of city-owned poles will be based upon the prevailing market rates for similar uses in the region. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.470 Use of poles and facilities by city. With respect to poles and trenches which are facilities and which are (1) wholly owned by a franchisee or grantee, and (2) within the franchise area, the city, subject to franchisee’s or grantee’s prior written consent, may install and maintain city-owned overhead facilities upon such poles, and conduits in open trenches, for police, fire, illumination, and other noncommercial communications purposes, subject to the following: A. Such installation and maintenance shall be completed at the city’s expense; ------------------------- ORD 6798 EXHIBIT C PAGE 142 of 152    B. The franchisee or grantee shall have no obligation under the indemnification provisions of this franchise or public way agreement for the installation or maintenance of such city-owned facilities or conduits; C. Nothing herein shall require the franchisee or grantee to bear any cost or expense in connection with such installation and maintenance of city-owned facilities or conduits, nor shall such city installation delay or adversely effect franchisee’s or grantee’s construction schedule; D. In no case shall the city attach to or come into contact with grantee’s or franchisee’s equipment. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) 20.10.480 Administration. The public works director or designee shall administer all public way agreements and franchises subject to this title, and the finance director or designee shall administer all leases subject to this title. (Ord. 5271 § 1, 1999; Ord. 5034 § 1, 1998.) ------------------------- ORD 6798 EXHIBIT C PAGE 143 of 152    Chapter 20.12 OPEN VIDEO SYSTEMS (Reserved)REPEALED ------------------------- ORD 6798 EXHIBIT C PAGE 144 of 152    Chapter 20.14 SMALL WIRELESS FACILITIES WITHIN THE PUBLIC RIGHTS-OF-WAY Sections: 20.14.010 Overview. 20.14.020 Application for small wireless facilities permits. 20.14.030 Implementation – Small wireless facilities permits. 20.14.040 Small wireless facility permit review process. 20.14.050 Deviations. 20.14.060 Small wireless facility approvals and processes. 20.14.070 Additional review procedures. 20.14.080 Compliance with federal processing limitations. 20.14.090 Design standards. 20.14.100 Noninterference. 20.14.110 Facility removal. 20.14.010 Overview. A. Service providers or any other persons or entities who seek to use the public right-of-way for small wireless facilities deployment to provide personal wireless service, data transmission, or other related services, must have a valid franchise under Chapter 20.0620.04 ACC to use the right-of-public way and a small wireless facility permit to deploy that technology at each proposed location. Entities with franchises who wish to use a small wireless facility deployment to upgrade or expand their existing services will use the processes set forth in this chapter to obtain approval of specific installations. An entity without a franchise will apply for a franchise as well as a small wireless facility permit for its initial deployment, and the applications will be processed concurrently. B. Nothing in this chapter revises or diminishes the rights and obligations of an existing franchise. ------------------------- ORD 6798 EXHIBIT C PAGE 145 of 152    C. Nothing herein shall exempt Ssmall wireless facilities deployment elements that requirefrom SEPA review may use these processes only in conjunction with SEPA reviewcompliance. D. For purposes of this chapter, “small wireless facilities” are defined as facilities that meet the following conditions: 1. The facilities: a. Are mounted on structures 50 feet or less in height, including their antennas as defined in 47 CFR 1.1320(d); or b. Are mounted on structures no more than 10 percent taller than other adjacent structures; or c. Do not extend existing structures on which they are located to a height of more than 50 feet or by more than 10 percent, whichever is greater; and 2. Each antenna associated with the deployment, excluding associated antenna equipment (as defined in the definition of antenna in 47 CFR 1.1320(d)), is no more than three cubic feet in volume; and 3. All other wireless equipment associated with the structure (including the wireless equipment associated with the antenna and any preexisting associated equipment on the structure) is no more than 28 cubic feet in volume; and 4. The facilities do not require antenna structure registration under Code of Federal Regulations, Title 47, Part 17; and 5. The facilities are not located on Tribal lands, as defined under 36 CFR 800.16(x); and 6. The facilities do not result in human exposure to radio frequency radiation in excess of the applicable safety standards specified in 47 CFR 1.1307(b); and ------------------------- ORD 6798 EXHIBIT C PAGE 146 of 152    7. The facilities are currently located or are proposed to be located within the public right-of-way. For facilities currently located or proposed to be located on private property, please see Chapter 18.31 ACC. For facilities currently located or proposed to be located on public property or facilities, please see Chapter 20.08 ACC. (Ord. 6707 § 1 (Exh. A), 2018.) 20.14.020 Application for small wireless facilities permits. For locations in the public right-of-way, the director of public works (“director”) is charged with administration of small wireless facilities deployments and other small wireless facilities permit review processes for use of public right-of-way established under this chapter. Unless previously provided with an application for a franchise, the following information will be provided by all applicants seeking to use small wireless facilities deployment: A. Specific locational information, including GPS coordinates of all proposed facilities; and B. Specific design information and plans, addressing poles or other support structures, attachments, conduit, and any ground-mounted equipment; and C. A narrative addressing how the proposed plans are consistent with the franchise exhibit(s), if applicable, or otherwise meet the design requirements of this chapter, and otherwise as required within the ACC; and D. A concealment plan demonstrating how the proposed small wireless facilities comply with the Ccity of Auburn engineering design and construction standards; and E. Provision of proof of Federal Communications Commission and other regulatory approvals required to provide the service(s) or use the technologies sought to be installed; and ------------------------- ORD 6798 EXHIBIT C PAGE 147 of 152    F. Provision of proof that the proposed facilities will not interfere with the city’s automated metering infrastructure (AMI), telemetry (SCADA), automated light meter facilities, or other city communication facilities; and G. Provision of proof from pole or structure owners that the additional load of small wireless facilities can be accommodated by the poles or structures or if the city is the pole or structure owner, proof of compliance with Chapter 20.08 ACC; and H. Any other information determined by the director to be necessary for processing the application. Permits issued under this chapter will not supplant any other permits required under federal or stateapplicable law, or the Auburn City Code, including, but not limited to, Chapters 12.24 and 13.32A ACC. (Ord. 6707 § 1 (Exh. A), 2018.) 20.14.030 Implementation – Small wireless facilities permits. The rights granted under a franchise are implemented through the issuance of small wireless facilities permits. The franchise application, required under Chapter 20.04 20.06 ACC, may be accompanied by one or more applications for a small wireless facilities permit to deploy small wireless facilities. An initial franchise and any related small wireless facilities permit applications will be processed concurrently. A. Up to five sites may be specified in one small wireless facilities permit application for processing. B. Issuance of a small wireless facilities permit to install small wireless facilities will be contingent upon approval of a franchise under Chapter 20.04 20.06 ACC, or the possession of a valid franchise. C. Any element of a deployment that qualifies as an eligible facilities request under 47 CFR 1.40001 1.600 will be specifically designated by the applicant and may be addressed separately by the director in order to comply with the shot clocks established by federal applicable law. ------------------------- ORD 6798 EXHIBIT C PAGE 148 of 152    D. The director may approve, deny, or conditionally approve all or any portion of the sites proposed in a small wireless facilities permit application. Any denial of an application under this chapter must be made in writing and be supported by substantial evidence. E. Any application for a small wireless facilities permit that contains an element that is not exempt from SEPA review will simultaneously submit a SEPA Environmental Checklist under Chapter 43.21C RCW and Chapter 16.06 ACC. F. The city recognizes that the Federal Telecommunications Act of 1996 gives the Federal Communications Commission sole jurisdiction in the field of regulation based upon the environmental effects of electromagnetic radio frequency emissions and small wireless facilities that meet Federal Communications Commission standards will not be conditioned or denied on the basis of environmental effects of radio frequency or electromagnetic frequency impacts. Applicants for small wireless facilities will be required to provide the city information on the projected power density of the facility and compliance with the Federal Communications Commission requirements. (Ord. 6707 § 1 (Exh. A), 2018.) 20.14.040 Small wireless facility permit review process. The following provisions relate to applications for a small wireless facility permit: A. Federal Law. Review of the site locations proposed by the applicant will be governed by the provisions of 47 USC 253 and 47 USC 332 and applicable regulations and case law. Applicants will be treated in a competitively neutral and nondiscriminatory manner with other service providers whose facilities are similarly situated in terms of structure, placement, or cumulative impacts. Small wireless facilities permit review under this chapter will neither prohibit nor have the effect of prohibiting the ability of an applicant to provide telecommunications services. B. Concealment. The city will permit small wireless facility deployment on existing or replacement poles or structures conforming to the city’s generally applicable pole ------------------------- ORD 6798 EXHIBIT C PAGE 149 of 152    design standards, the city’s engineering design and construction standards, the concealment element plan approved as part of the small wireless facilities permit(s), and consistent with the relevant franchise exhibit (if applicable). Small wireless facilities may not be expanded unless the expansion does not defeat the facility’s required concealment elements. C. The director will review applications for small wireless facilities permits for consistency with relevant franchise exhibits, and design standards, and applicable law. D. Small wireless facilities permits applications to install facilities will be processed within the time frames set by applicable federal regulations. E. The decision of the director to approve a small wireless facility permit will be final and is not subject to appeal under city code or further legislative review. (Ord. 6707 § 1 (Exh. A), 2018.) 20.14.050 Deviations. Any request for deviations from the approved small cell facilities design designated in the franchise, or any previously approved small wireless facility permit, will be considered a new small wireless facilities permit request. An applicant seeking approval of a deviation from an approved small wireless facilities permit will apply for a new small wireless facilities permit. (Ord. 6707 § 1 (Exh. A), 2018.) 20.14.060 Small wireless facility approvals and processes. Approval of a small wireless facility permit and/or other approval referenced in this chapter are conditioned on the following requirements: A. Satisfy applicable bulk requirements, such as noise and light regulations. ------------------------- ORD 6798 EXHIBIT C PAGE 150 of 152    B. Comply with adopted design and concealment standards as provided by the city’s engineering design and construction standards. C. Obtain the written approval of the owner of any pole or structure for the installation of its facilities on such pole or structure. Approval of a franchise under Chapter 20.0620.04 ACC does not authorize attachment to city-owned poles or other structures. D. Unless specifically provided for in a franchise, obtain a lease or other applicable authorization from the city to use city-owned poles, ground space or infrastructure for the installation of any small wireless facility, or to locate any new ground-based structure, base station, or other attendant equipment on city owned facilities or property right-of-way. E. Comply with all city construction standards and state and federal codes when operating in the right-of-public way and obtain a required permit to enter the right-of- public way for construction. F. If the applicant does not take action in good faith, the application will be considered abandoned after 180 days of non-action. (Ord. 6707 § 1 (Exh. A), 2018.) 20.14.070 Additional review procedures. Small wireless facilities in shorelines management zones or environmentally critical areas are subject to review as provided in Chapters 16.08 and/or 16.10 ACC. (Ord. 6707 § 1 (Exh. A), 2018.) 20.14.080 Compliance with federal processing limitations. Review of small wireless facilities permits will comply with the provisions of 47 CFR Part 1, subpart U, if applicable. Applications will be reviewed, completeness ------------------------- ORD 6798 EXHIBIT C PAGE 151 of 152    determined, and the time frame tolled as provided in this chapter and Chapter 20.0620.04 ACC. (Ord. 6707 § 1 (Exh. A), 2018.) 20.14.090 Design standards. All small wireless facilities will be constructed or installed according to applicable Federal Communications Commission (FCC), Federal Aviation Administration (FAA), state and city regulations and standards, including the city of Auburn engineering design and construction standards. (Ord. 6707 § 1 (Exh. A), 2018.) 20.14.100 Noninterference. Wireless facilities of any kind will not interfere with any emergency, communication, or utility infrastructure systems of the city. A. If the city notifies service providers that their equipment is potentially interfering with public safety communications equipment, the providers will cooperate and coordinate with the city and among themselves to investigate and mitigate the interference, if any, utilizing the procedures set forth in the joint wireless industry – public safety “Best Practices Guide,” released by the FCC in February 2001, including the “Good Engineering Practices,” as may be amended or revised by the FCC from time to time. B. If any service provider or facility owner fails to cooperate with the city in complying with the owner’s obligations under this section or if the FCC makes a determination of radio frequency interference with the city communications equipment, the owner who fails to cooperate and/or the owner of the facility or facilities which caused the interference will be responsible, upon FCC determination of radio frequency interference, for reimbursing the city for all costs associated with ascertaining and resolving the interference, including but not limited to any engineering studies obtained by the city to determine the source of the interference. For the purposes of this subsection, failure to cooperate will include failure to initiate ------------------------- ORD 6798 EXHIBIT C PAGE 152 of 152    any response or action as described in the “Best Practices Guide” within 24 hours of the city’s notification. (Ord. 6707 § 1 (Exh. A), 2018.) 20.14.110 Facility removal. A small wireless facility will be removed: A. Within 180 days of the date the facility’s use is discontinued, it ceases to be operational, the permit is revoked, or, if the facility falls into disrepair and is not maintained, within 90 days of a notice from the city to effect repairs and maintenance to the satisfaction of the city. The owner and/or operator of a facility will notify the city upon the discontinued use of a particular facility.; however, B. If the owner and/or operator fails to remove the facility as required, then the facility is a nuisance and subject to appropriate legal proceeding in accordance with Chapter 1.25 ACC. (Ord. 6707 § 1 (Exh. A), 2018.)