HomeMy WebLinkAbout09-08-2025 Agenda Packet
City Council
Study Session
Finance & Internal Services SFA
September 8, 2025 - 5:30 PM
City Hall Council Chambers
AGENDA
CALL TO ORDER
PUBLIC PARTICIPATION
A. The Auburn City Council Study Session Meeting scheduled for Monday, September 8,
2025 at 5:30 p.m. will be held in person and virtually.
Virtual Participation Link:
To view the meeting virtually please click the below link, or call into the meeting at the
phone number listed below. The link to the Virtual Meeting is:
https://www.youtube.com/user/watchauburn/live/?nomobile=1
To listen to the meeting by phone or Zoom, please call the below number or click the link:
Telephone: 253 215 8782
Toll Free: 877 853 5257
Zoom: https://us06web.zoom.us/j/82338063757
ROLL CALL
AGENDA MODIFICATIONS
ANNOUNCEMENTS, REPORTS, AND PRESENTATIONS
FINANCE AND INTERNAL SERVICES DISCUSSION ITEMS
A. 2nd Quarter 2025 Financial Report (Thomas) (20 Minutes)
Financial Report through June 30, 2025
AGENDA ITEMS FOR COUNCIL DISCUSSION
A. Ordinance No. 6987 (Krum) (15 Minutes)
An Ordinance for a site-specific rezone of Parcel No. 0004200001 from R-2, Residential
Low to P-1, Public Use
B. Ordinance No. 6988 (Krum) (15 Minutes)
An Ordinance for a major amendment to the Lakeland Hills South PUD boundary to extract
fourteen (14) parcels
C. Ordinance No. 6994 (Gaub) (10 Minutes)
An Ordinance granting Ezee Fiber Texas, LLC a franchise for wireline telecommunications
Page 1 of 98
ADJOURNMENT
Agendas and minutes are available to the public at the City Clerk's Office and on the City website
(http://www.auburnwa.gov).
Page 2 of 98
AGENDA BILL APPROVAL FORM
Agenda Subject: Meeting Date:
2nd Quarter 2025 Financial Report (Thomas) (20 Minutes)
Financial Report through June 30, 2025
September 8, 2025
Department: Attachments: Budget Impact:
Finance Financial Report through June
2025 , 2025 Q2 Financial Update
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
The financial report summarizes the general state of Citywide financial affairs and highlights
significant items or trends that the City Council should be aware of. The attachment provides year-to-
date financial activity through June 30, 2025, based on financial data available as of July 25, 2025.
Councilmember: Kate Baldwin Staff: Jamie Thomas
Page 3 of 98
Quarterly Financial Report Through June 2025
This report provides an overview of the City’s overall cash-basis financial position for the fiscal
period ending June 30, 2025, reflecting data available as of July 25, 2025. References to budget,
actual and prior year amounts reflect year-to-date numbers, unless otherwise stated. Year-to-date
budget expectations are generally based on the two prior years of data.
General Fund Overview
Although 2024 ended favorable to both revenue and expenditure projections, the new year has
begun with a higher degree of uncertainty. The City anticipates that the favorable variances at the
City saw in prior years will diminish in magnitude this year. With the adoption of Ordinance #6975
in June, the 2025 annual budget consists of $105.9 million in revenues and $119.6 million in
expenditures - a planned decrease in General Fund balance of $13.7 million.
Through the second quarter of 2025, the General Fund outperformed revenue expectations by $5.5
million or 11%. However, General Fund revenue collections are $3.2 million or 5% lower year-to-
date than the same period in 2024, mainly due to the final transfer-in of ARPA monies last year. A
large contributor to the favorable variance to budget outcome is Business and Occupation (B&O)
tax revenue; through the second quarter the City collected $7.0 million in B&O taxes, which includes
backdated collections. Despite a strong first half of the year performance, the City anticipates B&O
revenues will decline from a high point of $11.6 million in 2024 as payments related to prior periods
decrease. Also contributing to the favorable revenue variance is the expansion of the photo
enforcement program , which has generated $1.1 million in revenue year-to-date. The City saw
expenditures increase from the same period last year by $2.0 million or 4%. This is due to planned
increases in overhead costs, professional services (citywide projects and improvements), and
insurance premiums.
Overall, General Fund revenues collected through Q2-2025 totaled $57.8 million as compared to
the year-to-date budget of $52.3 million, and were $5.5 million, or 11% above budget expectations.
General Fund expenditures totaled $50.3 million compared to the year-to-date budget of $58.6
million, resulting in a $8.3 million or 14% underspend.
Page 4 of 98
Quarterly Financial Report Through June 2025 2
Revenue: The following factors had the most significant impact on the budget vs. actual revenue
collected:
• Business and Occupation Tax: Revenues collected throughout Q2-2025 totaled $7.0
million, exceeding the year-to-date budget by $1.8 million. Some of this favorable
variance is due to the collection of tax obligation s incurred in prior years, which is not
expected to continue at the same level in the future. [pages 8-9]
• Interest and Investment Earnings: Throughout Q2-2025, interest and investment
earnings have totaled $1.2 million in collections and hold a $930,000 favorable variance
to budget. This is largely due to current investments outperforming expectations
throughout this timeframe despite lower interest rates. The City had a large investment
mature during this time, contributing to the favorable variance. [pages 19-20]
• Electric Utility Tax: Revenues collected throughout Q2-2025 have totaled $2.7 million,
compared to a year-to-date budget of $1.9 million. Electric utility tax revenue collections
are the highest they have been in the last eight years, outperforming prior year totals
through the same timeframe by $215,000. This is due to higher than anticipated usage
throughout the City. [pages 9-10]
• Fines and Penalties: Throughout Q2-2025, fines and penalties revenues have totaled
$1.8 million and hold a favorable variance against budget projections by $585,000 or
50%. This is mainly due to the enhancement of the Photo Enforcement program , from
which the City has collected $1.1 million year-to-date. This program alone accounts for
61% of revenues collected in this category. However, photo enforcement collections
compared to prior year totals are down $568,000 or 33%. This was anticipated by the
City as the program goal of increasing safety takes effect. [pages 18-19]
• Intergovernmental: Q2-2025 revenues collected totaled $2.6 million and were $651,000
lower than budget expectations. The timing of collections from federal and state grants
are the main contributor to the unfavorable variance. Grants are generally received on
a reimbursement basis, meaning that lower revenues in this category correspond to
lower expenditures based on the timing of the project underlying the grant award. [page
15]
Expenditures: Most of the City’s departments operated within year-to-date expectations throughout
the second quarter of 2025, with some variances due to the timing of professional services
payments, as well as expenses related to projects facilitated by ARPA funding. Overall, the
favorable variance to the year-to-date expense budget is $8.3 million. Contributing to the favorable
variance was a savings in salaries and benefits expenses of roughly $3.1 million; as of the
compilation of this report, there were 35 vacant regular full-time positions in the City. Additionally,
services and charges were below budget expectations throughout the second quarter by roughly
$3.2 million. This is partially due to the timing of spending on non-ARPA related projects in progress
within the City.
Page 5 of 98
Quarterly Financial Report Through June 2025 3
Enterprise Funds Overview
The City’s enterprise funds account for operations with revenues primarily provided from user fees,
charges, or contracts for services. In the prior year, the maturation of certain investments meant
that while the enterprise funds continued to see year-over-year increases in interest earnings, these
increases were at a lower growth rate than previous periods. Through Q2-2025, interest earnings
for the City’s enterprise funds were $1.8 million, an increase of only +$7,000 from Q2-2024.
The Water Utility Fund ended Q2-2025 with operating income of $2.9 million, an increase of
$197,000 compared to the same period last year. This variance is due primarily to increased
revenues from charges for services (+$802,000), while expenditures also increased by +$598,000
mainly due to interfund operating expenses and personnel charges. Overall, the fund’s operating
income has a $1.4 million favorable variance to year-to-date budget expectations, driven by strong
performance in charges for service and interest and investment earnings on the revenue side and
lower-than-expected service charge expenditures. [pages 24-25]
The Sewer Utility Fund ended Q2-2025 with operating income $75,000 higher than Q2-2024,
coming in at $2.5 million. While operating revenues increased $341,000 compared to the same
period last year, operating expenditures also increased (+$266,000). The increase in operating
expenditures was driven primarily by increased interfund charges (+$376,000). In total, operating
income for this fund was $2.2 million higher compared to our budget projections, due to favorable
variances in both operating revenues (+$1.5 million) and operating expenses (-$652,000). [page
25]
The Stormwater Utility Fund ended Q2-2025 with operating income of $1.8 million, $21,000
higher than operating income through the same period last year. Operating revenues increased
$505,000 compared to the prior year, mainly due to an increase in charges for storm service
(+433,000) and interest and investment earnings (+$74 ,000). Operating expenditures for this fund
also increased compared to the prior year (+$484,000), due mainly to increased service charges
(+$83,000) and interfund charges (+$350,000). This fund outperformed operating income budget
projections by $800,000 through Q2-2025, due to favorable budget variances in both operating
revenues (+$594,000) and expenditures (-$206,000). [page 25]
The Solid Waste Utility Fund ended Q2-2025 with operating income of $453,000, a $923,000
increase compared to the operating loss in Q2-2024. This variance is due to an increase in charges
for services revenues (+$1.2 million) due to higher service rates adopted in 2025, while operating
expenses saw a smaller increase (+$184,000). In all, operating income for this fund came in -
$192,000 lower than expected, driven by a favorable budget variance in revenues (+$477,000)
offset by higher than anticipated expenditures (+$669,000). In general, we expect that increases to
charges for service in this fund throughout the year will have corresponding increases in payments
to the City’s solid waste vendor. [pages 25-26]
Internal Service Funds Overview
Internal service funds provide services to other City departments and include functions such as
Insurance, Worker’s Compensation, Facilities, Innovation & Technology, and Equipment Rental.
No significant variances were reported in these funds during Q 2-2025. [page 26]
Page 6 of 98
Quarterly Financial Report Through June 2025 4
General Fund Details
The following chart is a detailed breakdown of the General Fund’s different sources of revenue
and expenditures, broken down by department:
General Fund 2025 2024
Summary of Sources and Uses Annual YTD YTD YTD
Budget Budget Actual Amount Percentage Actual Amount Percentage
Operating Revenues
Property Tax 25,002,800$ 13,211,200$ 13,438,669$ 227,469$ 1.7 %13,013,003$ $ 425,666 3.3 %
Retail Sales Tax 22,579,330 10,924,600 11,176,312 251,712 2.3 %11,034,366 141,946 1.3 %
Affordable Housing Sales Tax Credit 148,000 47,800 47,903 103 0.2 %47,917 (14)(0.0)%
Sales Tax - Pierce County Parks 131,100 63,200 65,983 2,783 4.4 %65,256 727 1.1 %
Criminal Justice Sales Tax 3,067,500 1,479,800 1,507,809 28,009 1.9 %1,471,722 36,088 2.5 %
Brokered Natural Gas Tax 314,000 213,300 147,479 (65,821)(30.9)%158,200 (10,720)(6.8)%
City Utilities Tax 6,828,200 3,287,200 3,493,734 206,534 6.3 %3,273,192 220,542 6.7 %
Business & Occupation Tax 9,991,700 5,237,813 7,035,190 1,797,377 34.3 %6,492,740 542,450 8.4 %
Admissions Tax 252,500 134,900 234,950 100,050 74.2 %412,521 (177,571)(43.0)%
Electric Tax 4,695,800 1,881,500 2,661,010 779,510 41.4 %2,445,863 215,146 8.8 %
Natural Gas Tax 1,417,400 780,300 1,012,226 231,926 29.7 %832,703 179,523 21.6 %
Cable Franchise Fee 888,000 444,000 355,924 (88,076)(19.8)%386,847 (30,923)(8.0)%
Cable Utility Tax 917,400 458,700 423,085 (35,615)(7.8)%412,496 10,590 2.6 %
Cable Franchise Fee - Capital 51,200 25,600 17,756 (7,844)(30.6)%20,167 (2,411)(12.0)%
Telephone Tax 606,240 285,271 394,074 108,803 38.1 %386,423 7,651 2.0 %
External Utility Tax 987,500 241,802 779,482 537,680 222.4 %583,042 196,441 33.7 %
Leasehold Excise Tax 286,000 246,200 265,124 18,924 7.7 %255,613 9,510 3.7 %
Gambling Excise Tax 287,500 142,451 222,223 79,772 56.0 %94,389 127,834 135.4 %
Taxes sub-total 78,452,170$ 39,105,636$ 43,278,931$ 4,173,295$ 10.7 %41,386,459$ $ 1,892,472 4.6 %
Business License Fees 585,100$ 293,200$ 373,833$ 80,633$ 27.5 %300,660$ $ 73,173 24.3 %
Building Permits 950,200 508,200 674,669 166,469 32.8 %571,910 102,759 18.0 %
Other Licenses & Permits 1,414,300 811,300 412,872 (398,428)(49.1)%755,392 (342,520)(45.3)%
Intergovernmental (Grants, etc.)8,095,610 3,279,318 2,628,262 (651,056)(19.9)%3,611,258 (982,996)(27.2)%
Charges for Services: - N/A
General Government Services 5,114,176 2,557,088 2,549,857 (7,231)(0.3)%2,270,820 279,037 12.3 %
Public Safety 1,215,556 607,778 589,818 (17,960)(3.0)%630,328 (40,509)(6.4)%
Development Services Fees 2,175,100 1,100,700 1,122,634 21,934 2.0 %623,247 499,387 80.1 %
Culture and Recreation 2,981,200 1,634,879 1,974,843 339,964 20.8 %1,884,830 90,014 4.8 %
Fines and Penalties 2,522,706 1,180,928 1,765,834 584,905 49.5 %2,143,975 (378,141)(17.6)%
Fees/Charges/Fines sub-total 25,053,948$ 11,973,391$ 12,092,624$ 119,232$ 1.0 %12,792,419$ $ (699,796)(5.5)%
Interest and Investment Earnings 782,500$ 304,886$ 1,235,349$ 930,464$ 305.2 %945,672$ $ 289,677 30.6 %
Rents and Leases 1,155,180 618,100 695,625 77,525 12.5 %786,591 (90,966)(11.6)%
Contributions and Donations 33,623 10,117 13,996 3,879 38.3 %11,919 2,077 17.4 %
Other Miscellaneous 223,180 135,064 176,398 41,334 30.6 %529,509 (353,111)(66.7)%
Transfers In 206,558 103,279 206,558 103,279 100.0 %4,482,645 (4,276,087)(95.4)%
Insurance Recoveries - Capital & Operating 25,000 12,500 51,623 39,123 313.0 %29,294 22,329 76.2 %
Other Revenues sub-total 2,426,041$ 1,183,946$ 2,379,549$ 1,195,603$ 101.0 %6,785,630$ $(4,406,081)(64.9)%
Total Operating Revenues 105,932,159$ 52,262,974$ 57,751,104$ 5,488,130$ 10.5 %60,964,509$ $(3,213,404)(5.3)%
Operating Expenditures
Council & Mayor 1,951,839$ 1,078,986$ 839,428$ 239,558$ 22.2 %779,722$ $ 59,707 7.7 %
Administration 1,055,607 535,865 464,641 71,224 13.3 %646,351 (181,709)(28.1)%
Human Resources 2,750,455 1,393,270 1,319,154 74,116 5.3 %1,305,416 13,738 1.1 %
Municipal Court & Probation 3,754,752 836,476 850,070 (13,594)(1.6)%580,136 269,935 46.5 %
Finance 6,128,609 3,082,349 2,929,443 152,905 5.0 %2,450,280 479,163 19.6 %
City Attorney 4,804,178 2,332,875 2,442,539 (109,664)(4.7)%2,296,015 146,524 6.4 %
Community Development 8,905,635 4,371,302 3,480,618 890,684 20.4 %3,430,300 50,318 1.5 %
Human Services 5,176,012 2,592,639 1,168,823 1,423,816 54.9 %1,272,496 (103,674)(8.1)%
Office of Equity 1,051,203 537,698 322,708 214,990 40.0 %447,395 (124,688)(27.9)%
Jail - SCORE 5,900,000 2,950,200 2,927,616 22,584 0.8 %2,432,988 494,628 20.3 %
Police 40,422,325 21,207,576 18,398,006 2,809,570 13.2 %18,071,151 326,855 1.8 %
Public Works 4,826,501 2,626,720 2,886,331 (259,612)(9.9)%2,668,438 217,893 8.2 %
Parks, Arts & Recreation 17,265,391 8,531,185 8,173,320 357,865 4.2 %8,041,914 131,406 1.6 %
Streets 5,811,498 2,968,846 2,544,612 424,234 14.3 %2,389,086 155,526 6.5 %
Non-Departmental 9,843,185 3,594,275 1,565,690 2,028,585 56.4 %1,529,437 36,253 2.4 %
Total Operating Expenditures 119,647,190$ 58,640,262$ 50,313,001$ 8,327,262$ 14.2 %48,341,125$ $ 1,971,876 4.1 %
2024 YTD Actual vs. 2023 Actual
Favorable (Unfavorable)
2025 YTD Budget vs. Actual
Favorable (Unfavorable)
Page 7 of 98
Quarterly Financial Report Through June 2025 5
Page 8 of 98
Quarterly Financial Report Through June 2025 6
Revenue
Tax revenues, including property, sales/use, utility, business & occupation, gambling, and
admissions taxes provide over 75% of all resources supporting general governmental activities.
Licenses, charges for services, intergovernmental revenue (grants, state shared revenue, etc.) and
fines contribute a further 21% of total revenue to the General Fund. The remaining 4% is comprised
of a combination of different sources that are considered to be one -time resources. The following
section provides additional information on the most significant tax resource streams.
Property Tax collections through the second quarter totaled roughly $13.4 million, approximately
$227,000 or 2% above budget projections. As depicted in the graphic below, the majority of
property taxes are collected during the months of April and October, coinciding with the due dates
for county property tax billings.
Retail Sales Tax collections throughout Q2-2025 totaled $11.2 million, representing taxes remitted
to the City of Auburn based on sales from November 2024 through April 2025. Overall, these
revenues in creased by $142,000, or 1%, from Q2-2024 collections. Most industries saw higher
overall collections, including automotive (+$172,602), manufacturing (+$85,681), and services
(+$48,290). Partially offsetting the increases were decreases in the construction (-$110,386) and
wholesale trade industries (-$45,310), as well as the miscellaneous category, which largely consists
of remitters with no identified industry classification (-$39,347). In comparison to the year-to-date
budget, these revenues are also favorable by nearly $251,712 or 2% through the second quarter.
Historically, the City collects more sales tax revenues during the second half of the year, mainly
due to the upcoming holiday seasons.
The City’s retail sales tax budget is $22.6 million for fiscal year 2025, a budgeted decrease of
$326,000 from the prior year actuals. Based on year-to-date performance, collections may exceed
this amount by year-end. In its July 2025 economic forecast, King County estimated1 that sales tax
revenues will have an annual growth of 0.9% from 2024 collections. By comparison, the City’s
budget currently reflects a decline in sales tax revenues of -1% from 2024 collections. Auburn
generally experiences a higher growth rate than the County does, and has experienced a
1 King County, WA. 2025. The Office of Economic and Financial Analysis.
https://kingcounty.gov/en/legacy/independent/forecasting.
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Quarterly Financial Report Through June 2025 7
cumulative annual growth rate of 5% between 2019 and 2024 . However, the rate of growth is
volatile and has been in decline since a peak in 2019.
$18.9
$21.6
$22.7 $23.0 $22.9
$11.2
$5
$10
$15
$20
$25
2020 2021 2022 2023 2024 2025
YTDMillionsRetail Sales & Use Tax
Page 10 of 98
Quarterly Financial Report Through June 2025 8
The following table breaks out the City’s retail sales taxes by major business sector.
Business & Occupation (B&O) Taxes are collected from businesses based on either the value
of gross receipts or square footage of occupied warehousing space, subject to certain constraints.
While the City receives collections throughout the year, B&O taxes are generally received on a
quarterly basis.
By reconciling against the State’s Business Licensing System, the City has been able to identify
taxes collectable from prior periods, significantly contributing to the performance of this revenue
which will bring the anticipated collection amount well over the budgeted totals for this year . Overall
collection through the second quarter of the year totaled $7.0 million versus a year-to-date budget
of $5.2 million. Of the $7.0 million collected, roughly $3.7 million or 52% consists of back taxes
being paid. Current 2025 collections outpace 2024 collections through the same period by
$542,000 (8%), although recovery of back taxes is anticipated to decrease over time .
Comparing collections to prior year-to-date totals, the City has collected roughly $7 93,000 or 21%
more revenue related to gross receipts, while square footage collections are $-250,000 or -9%
lower than prior year totals.
2024 2025
Component Group YTD Actual YTD Actual Amount
Construction 1,236,766$ 1,126,380$ (110,386)$ (8.9)%
Manufacturing 149,263 234,944 85,681 57.4 %
Transportation & Warehousing 160,368 173,253 12,885 8.0 %
Wholesale Trade 837,152 791,842 (45,310) (5.4)%
Automotive 2,370,159 2,542,761 172,602 7.3 %
Retail Trade 3,254,196 3,271,726 17,530 0.5 %
Services 2,829,364 2,877,654 48,290 1.7 %
Miscellaneous 197,099 157,752 (39,347) (20.0)%
YTD Total 11,034,366$ 11,176,312$ 141,946$ 1.3 %
Comparison of Retail Sales Tax Collections by Group
Through June 2025
Change from 2024
Percentage
2024
Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD Actual Amount Percentage
Gross Receipts 6,973,700$ 3,655,728$ 4,494,806$ 839,078$ 23.0%3,701,984$ 792,822$ 21.4%
Square Footage 3,018,000 1,582,085 2,540,384 958,299 60.6%2,790,756 (250,372) -9.0%
Total 9,991,700$ 5,237,813$ 7,035,190$ 1,797,377$ 34.3%6,492,740$ 542,450$ 8.4%
Business & Occupation Tax
Through June 2025
2025 Favorable (Unfavorable)2025 YTD Actual vs. 2024 Actual
Page 11 of 98
Quarterly Financial Report Through June 2025 9
Utility Taxes consist of an 11.5% tax on the gross revenues of water, sewer, storm drainage and
solid waste utilities and a 6.0% tax on electric, natural gas, and telephone utilities operating within
the City. Of those utilities taxed at 11.5%, the General Fund receives 9.0% while the remaining
2.5% is dedicated to funding City streets projects. The utilities taxed at 6.0% contribute 5.0% to the
General Fund and 1.0% to City streets projects.
Overall, utility taxes in creased by $819,000 or 10% from Q2-2024, and are $1.8 million favorable
to budget. Roughly 56% of the utility taxes collected by the City are represented by the city interfund
utility taxes and electric utility taxes. These two revenue sources accounted for $6.2 million of the
collected $8.9 million throughout the second quarter of 2025.
Currently, the largest portion of the overall favorable variance to budget occurs within the electric
utility taxes category due to an increase in electric rates effective in 2025. The remaining favorable
variances are due to the collection of backdated taxes. The City anticipates these collections to
slow as more utility taxes become current, since the collection of backdated taxes are assumed as
a one-time collection. Furthermore, external utility taxes are $538,000 above budget expectations
and $196,000 above prior year totals. This is due to higher collections of solid waste haulers which
increased their rates at the beginning of the year. With this rate change, the City anticipates these
revenues will continue the favorable variance throughout the year. Likewise, telephone taxes
increased from Q2-2024 by $8,000, which was mainly due to the timing of collections from prior
year activity. Telephone taxes are collected in arrears on a quarterly basis, which causes the timing
variance from prior year and quarters.
The table and charts below demonstrate the various utility tax revenues and show actual revenues
compared to budget. Note that these amounts represent only the General Fund portion of revenues,
and do not contain those revenues allocated for funding City streets projects.
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Quarterly Financial Report Through June 2025 10
2024
Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD Actual Amount Percentage
City Interfund Utility Taxes 6,828,200$ 3,287,200$ 3,493,734$ 206,534$ 6.3%3,273,192$ 220,542$ 6.7%
Electric 4,695,800 1,881,500 2,661,010 779,510 41.4%2,445,863 215,146 8.8%
Natural Gas 1,417,400 780,300 1,012,226 231,926 29.7%832,703 179,523 21.6%
Telephone 606,240 285,271 394,074 108,803 38.1%386,423 7,651 2.0%
External Utility Taxes 987,500 241,802 779,482 537,680 222.4%583,042 196,441 33.7%
Brokered Natural Gas 314,000 213,300 147,479 (65,821) -30.9%158,200 (10,720) -6.8%
Cable 917,400 458,700 423,085 (35,615) -7.8%412,496 10,590 2.6%
Total 15,766,540$ 7,148,073$ 8,911,090$ 1,763,017$ 24.7%8,091,918$ 819,172$ 10.1%
Utility Tax by Type (General Fund Portion)
2025 Favorable (Unfavorable 2025 YTD Actual vs. 2024 Actual
Through June 2025
Page 13 of 98
Quarterly Financial Report Through June 2025 11
Note: The significant jump from 2022 ($12.8 million) to 2023 ($15.8 million) is largely due to
higher service revenue following a rate increase effective in 2023, combined with higher service
usage and the collection of B&O taxes on businesses that provide utility services.
An Admission Tax of 5.0% is placed on charges for general admission, season tickets, cover
charges, etc. which are generally collected on a quarterly basis. Admission tax revenues of
approximately $235,000 collected through June 2025 were significantly lower (-43%) than through
Q2-2024. Th is is largely due to a one-time payment received in 2024 as part of an agreement.
Controlling for this non -recurring payment, admission taxes are still reporting a n unfavorable
variance of roughly $71,000 from prior year actuals. However, this revenue holds a favorable
variance to budget of $100,000 through the second quarter.
Gambling Tax applies to all card games, punch board games, pull tabs, bingo games, raffles and
amusement games played within City limits. The majority of gambling tax revenues are collected
from card games (64%) and amusement games (24%). At $222,000 through the second quarter,
collections are $128,000 higher than 2024 year-to-date totals and report a $80,000, or 56%,
favorable variance to budget. The primary drivers of the favorable variance are higher collections
from card games (+$106,000) and amusement games (+$28,000). Gambling tax revenues have
historically exhibited high volatility both month-over-month and year-over-year: excluding 2021
(due to COVID-19 restrictions), recent revenues through the second quarter of the year average
about $118,000 but have been as high as $170,000 (2023) and as low as $76,000 (2020). The City
will be monitoring these taxes closely, along with sales tax, as they serve as an indicator of
disposable income in the economy.
Page 14 of 98
Quarterly Financial Report Through June 2025 12
Licenses and Permits include business licenses, building permits, plumbing, electric and other
licenses and permit fees. Building permit fees and business licenses typically comprise most of the
budgeted revenue in this category, at approximately 46% and 26%, respectively.
The annual Business License renewal fee for each business located within the City is $107, with
the renewal cycle for each business beginning on the date the business was originally granted a
license.
Year-to -date collections totaled $374,000 so far in 2025 compared to $301,000 in 2024, a 24%
increase. Historically, business license collections have been a highly volatile revenue source, and
as such were budgeted conservatively. Through discovery and B&O tax use of the State’s Business
Licensing System, these revenues have become more consist ent. Comparing budget to actual
revenue, business licenses are favorable by $81,000 or 28% versus budget projections. The City
generally sees the highest collection amounts during the first and fourth quarters of the year due to
the renewal cycle.
Page 15 of 98
Quarterly Financial Report Through June 2025 13
Building Permit revenues collected through June 2025 totaled $675,000. Building permits are
approximately $103,000 higher than 2024 collections year-to-date, likewise, there is a favorable
variance against the budget of $166,000 (33%). A large contributing factor for this favorable
variance versus 2024 totals is the increased valuation of construction permits on warehouses.
However, the number of permits submitted throughout the second quarter have decreased by 44%
over the same period last year, representing a decreased workload of construction throughout the
City. There are two highly valued projects currently in progress in the City that account for the
majority of the permit revenues through this timeframe .
Page 16 of 98
Quarterly Financial Report Through June 2025 14
$674.7 K
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecTHOUSANDSBuilding Permits
2025 Budget 2025 YTD Actual 2024 Actual
$835.6
$1,294.0 $1,001.3
$904.4
$767.0
$674.7
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
$1,400.0
2020 2021 2022 2023 2024 2025
YTDThousandsBuilding Permits
Page 17 of 98
Quarterly Financial Report Through June 2025 15
Intergovernmental revenues include grants and stimulus monies (direct and indirect federal,
state, and local), revenue from the Muckleshoot Indian Tribe (MIT) compact as well as state shared
revenues. Collections throughout Q2-2025 totaled $2.6 million and were $651,000 unfavorable to
budget expectations. Much of this unfavorable variance is due to the timing of collection on federal
and state grants. These grant revenues are generally collected on a cost reimbursement basis;
throughout the end of 2024 and into the beginning of 2025, several projects have been delayed ,
causing the delay in collecting the reimbursement. The City anticipates that the identified projects
will be completed and reimbursed in 2025. Furthermore, the City’s proposed 2025 MIT compact
request was approved, and revenues from the request started to be collected in the beginning of
the second quarter.
Note: 2020 revenue was higher than normal due to the receipt of $3.8 million in federal CARES
grant money from the Department of Treasury .
2024
Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD Actual Amount Percentage
Federal Grants 1,103,661$ 275,915$ 34,000$ (241,915)$ -87.7%40,418$ (6,417)$ -15.9%
State Grants 1,007,467 464,400 188,516 (275,884) -59.4%534,897 (346,381) -64.8%
Interlocal Grants 460,682 174,100 88,345 (85,755) -49.3%281,149 (192,804) -68.6%
Muckleshoot Casino Services 1,800,000 450,000 419,277 (30,724) -6.8%791,885 (372,608) -47.1%
State Shared Revenues:
Streamlined Sales Tax 460,900 230,450 256,040 25,590 11.1%320,051 (64,010) -20.0%
Motor Vehicle Fuel Tax 1,173,700 565,800 513,575 (52,225) -9.2%523,420 (9,844) -1.9%
Criminal Justice - High Crime 291,200 145,600 149,583 3,983 2.7%141,570 8,013 5.7%
Criminal Justice - Population 34,500 16,600 17,516 916 5.5%16,393 1,124 6.9%
Criminal Justice - Special Prog.121,100 68,000 61,437 (6,563) -9.7%75,643 (14,206) -18.8%
Marijuana Excise Tax 200,600 100,300 97,769 (2,532) -2.5%116,499 (18,730) -16.1%
State DUI 7,800 3,900 3,600 (300) -7.7%4,833 (1,233) -25.5%
Fire Insurance Tax 121,600 121,600 201,291 79,691 65.5%119,516 81,775 68.4%
Liquor Excise 645,300 329,103 260,959 (68,144) -20.7%309,733 (48,774) -15.7%
Liquor Profit 667,100 333,550 336,354 2,804 0.8%335,253 1,101 0.3%
Total State Shared:3,723,800 1,914,903 1,898,125 (16,778) -0.9%1,962,910 (64,785) -3.3%
YTD Total 8,095,610$ 3,279,318$ 2,628,262$ (651,056)$ -19.9%3,611,258$ (982,996)$ -27.2%
Intergovernmental Revenues (Grants, Entitlements & Services)
Through June 2025
2025 Favorable (Unfavorable 2025 YTD Actual vs. 2024 Actual
Page 18 of 98
Quarterly Financial Report Through June 2025 16
Charges for Services consist of general governmental service charges, public safety charges,
development service fees, and culture and recreation fees. Charges for services revenues
collected through June 2025 totaled $6.2 million and were $337,000, or 6%, more than expected
to date. This was mainly due to culture and recreation revenues (specifically, recreation classes)
being higher than anticipated.
The general government revenue category primarily includes the interfund assessment for support
departments (Finance, Human Resources and Legal). Operating costs for these departments are
charged to the respective General Fund home department and the portion of those costs that
provide citywide benefit are recouped from other funds via interfund charges. General government
revenues also include fees for passport services, and quarterly administrative expenses related to
South King Housing and Homelessness Partners (SKHHP). The unfavorable variance of $7,000 to
budget is due to the timing of collections from SKHHP payments. Conversely, passport services
revenue is generally higher than expected due to the May 7th, 2025 implementation of the Real ID
program, which requires either a Real ID or a valid passport to travel by air.
Public safety revenues mainly consist of collections for law enforcement services, which are extra
duty security services whereby police officers are contracted for, and reimbursement is made by
the hiring agency. This category also includes reimbursements from the Muckleshoot Indian Tribe
(MIT) for a full-time dedicated police officer and associated expenditures , as well as monies
collected from the Auburn School District for services rendered. Public safety revenues collected
through the second quarter of 2025 totaled $590,000 and saw a $41,000 decrease from 2024
second quarter totals. This is largely attributable to lower-than-expected DUI emergency response
fees. Comparing 2024 vs 2025, DUI fees have decreased by $29,000 and roughly hold the same
unfavorable variance to budget expectations as well . Overall, public safety collections hold an
unfavorable variance to year-to-date budget expectations of -$18,000.
Development services fee collections consist primarily of plan check fees, facility extension
charges, and zoning and subdivision fees. Through Q2-2025, development service fee revenue
totaled $1.1 million, which is $22,000 above budget expectations and $499,000 higher than prior
year-to-date totals. Within this category, favorable variances to year-to-date budget existed in plan
check fees (+$367,000), FAC charges (+$77,000), and zoning and subdivision fees (+$58,000).
The large variance within plan check fees is the result of assessments on two large development
projects within city limits. These variances were offset by an unfavorable variance in other planning
and development fees (-$476,000), which is due to one large project added in the first budget
amendment of the year; it is expected to collect the full amount of the project by the end of the year.
With the ongoing projects progressing throughout the city, it is anticipated that development service
revenues with end the year with a favorable variance to both prior year totals and current annual
budget assumptions.
2024
Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD Actual Amount Percentage
General Government 5,114,176$ 2,557,088$ 2,549,857$ (7,231)$ -0.3%2,270,820$ 279,037$ 12.3%
Public Safety 1,215,556 607,778 589,818 (17,960) -3.0%630,328 (40,509) -6.4%
Development Services 2,175,100 1,100,700 1,122,634 21,934 2.0%623,247 499,387 80.1%
Culture & Recreation 2,981,200 1,634,879 1,974,843 339,964 20.8%1,884,830 90,014 4.8%
Total 11,486,032$ 5,900,445$ 6,237,153$ 336,709$ 5.7%5,409,225$ 827,929$ 15.3%
2025 Favorable (Unfavorable 2025 YTD Actual vs. 2024 Actual
Charges for Services by Type
Through June 2025
Page 19 of 98
Quarterly Financial Report Through June 2025 17
Most Culture and Recreation revenues are derived from green fees and pro shop sales at the
Auburn Golf Course, recreational classes, ticket sales at the Auburn Avenue Theater (currently
being held at other venues during construction), senior programs, and special events. Overall, this
category of revenues outperformed budget expectations by $340,000, or 21%.
Nearly 47% of the year-to-date Culture and Recreation revenues have come from the Auburn Golf
Course. Green fee revenues have increased by $89,000 or 11% from the same period last year
and are favorable to budget by $29,000 year-to-date. The City projects that green fee collections
will increase through the remainder of the year, as the golf course typically collects about 65% of
its total revenues during the peak months of May through September. Since 2018, green fee
revenues have increased annually, seeing a large spike in 2020 through 2021, followed by modest
increases during 2022-2024. The City anticipates continued modest growth in 2025 based on
updated green fee rates. However, the actual number of rounds played at the golf course
decreased by 369 or 1% from the same period last year.
Recreation classes represent 26% of year-to-date culture and recreation collections throughout the
second quarter and have generally remained consistent from prior year-to-date totals with $515,000
in collections. Ticket sales for performances held at local school venues (previously held at the
Auburn Avenue Theater) have decreased by $11,000 or 20% from prior year totals and also carry
an unfavorable variance to budget by $9,000. This is mainly due to the Performing Arts Center
decreasing ticket sales from prior year as the popularity of various shows were not as high as last
year. With continued community participation in recreational classes through the remainder of the
year the City is expecting a slight increase in revenues throughout 2025 .
Page 20 of 98
Quarterly Financial Report Through June 2025 18
Fines & Penalties include civil penalties (such as code compliance fines), parking and traffic
infraction penalties, criminal fines (including criminal traffic, criminal non -traffic, and other criminal
offenses) as well as non -court fines such as false alarm fines. The table below shows a detailed
breakdown of the different types of fines and penalties collected by the City.
Total revenues collected through June 2025 were $1.8 million as compared to a budget of $1.2
million and were 50% above budget expectations. This is primarily due to collections of the photo
enforcement program (implemented in 2023), which are classified as parking infractions.
Furthermore, the City received an influx of non -court fines & penalties throughout the second
quarter of the year due to the assessed fines and penalties regarding the backpay of B&O taxes.
The City contracts with the King County Court to operate its municipal court services . The number
of hearings, judgments, and collections activity began decreasing in 2019 and has continued to
decline since that time. Although the graph below shows a large spike in revenue in 2023 and 2024,
this is almost entirely due to photo enforcement and B&O-related collections. Excluding these
sources, the remaining court-related collections have declined to $144,000, approximately one-
third of their average for the period of 2015 -2019, prior to contracting with King County. The City is
currently conducting a feasibility study of alternatives to contracting with King County.
2024
Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD Actual Amount Percentage
Civil Penalties 1,000$ 328$ 567$ 239$ 72.9%984$ (417)$ -42.4%
Civil Infraction Penalties 148,400 74,000 115,319 41,319 55.8%86,912 28,408 32.7%
Photo Enforcement 1,100 600 - (600) -100.0%157 (157) -100.0%
Parking Infractions 2,233,506 1,050,300 1,137,978 87,678 8.3%1,705,544 (567,565) -33.3%
Criminal Traffic Misdemeanor 31,200 15,000 32,307 17,307 115.4%16,909 15,398 91.1%
Criminal Non-Traffic Fines 48,200 24,000 25,051 1,051 4.4%34,415 (9,365) -27.2%
Criminal Costs 12,200 7,800 3,760 (4,040) -51.8%5,235 (1,475) -28.2%
Non-Court Fines & Penalties 47,100 8,900 450,851 441,951 4965.7%293,819 157,032 53.4%
Total 2,522,706$ 1,180,928$ 1,765,834$ 584,905$ 49.5%2,143,975$ (378,141)$ -17.6%
Fines & Penalties by Type
2025 Favorable (Unfavorable 2025 YTD Actual vs. 2024 Actual
Through June 2025
Page 21 of 98
Quarterly Financial Report Through June 2025 19
Miscellaneous Revenues consist of investment earnings, income from facility rentals, revenue
collected for golf cart rentals at the Auburn Golf Course, contributions and donations, and other
income including the quarterly purchasing card (P-card) rebate monies. The most significant
miscellaneous revenue categories are listed in the table below.
Revenues collected year-to-date 2025 in this category totaled $2.1 million and were $1.1 million or
99% favorable to budget. Of the favorable variance to budget, 88% was comprised of interest and
investment collections, far exceeding budget expectations due to higher-than-expected interest
rates (although lower than prior year) and the maturation of multiple investments during the first
half of the year.
The rents and leases category includes payments for facility rentals, golf cart rentals, and the
restaurant lease at the golf course. Rents and leases were favorable by $78,000 against year-to-
date budget expectations, with a temporary easement of City property contributing significantly to
the variance. However, golf carts and other rentals were unfavorable to budget expectations by
$44,000, mitigating the favorable balance of budget to actual for the category. The rents and leases
category generally exhibits seasonality, with the peak being in the spring and summer months. To
date, rents and leases are $152,000 below 2024 collections throughout the same period, as the
City has seen decreased numbers of events that request the use of City facilities.
2024
Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD Actual Amount Percentage
Interest & Investments 782,500$ 304,886$ 1,235,349$ 930,464$ 305.2%945,672$ 289,677$ 30.6%
Rents & Leases 1,155,180 618,100 695,625 77,525 12.5%786,591 (90,966) -11.6%
Contributions & Donations 33,623 10,117 13,996 3,879 38.3%11,919 2,077 17.4%
Other Miscellaneous Revenue 223,180 135,064 176,398 41,334 30.6%529,509 (353,111) -66.7%
Total 2,194,483$ 1,068,167$ 2,121,368$ 1,053,201$ 98.6%2,273,691$ (152,323)$ -6.7%
Miscellaneous Revenues by Type
2025 Favorable (Unfavorable 2025 YTD Actual vs. 2024 Actual
Through March 2025
Page 22 of 98
Quarterly Financial Report Through June 2025 20
The “Other Miscellaneous Revenue” sub -category reported $353,000 less than the same
timeframe last year but was favorable to the year-to-date budget by $41,000. This category
normally includes revenue related to a national opioid settlement distribution program; the City did
receive settlement payments during the second quarter of the year totaling $21,000, contributing
to the favorable variance against the budget. However, this amount is far lower than the previous
year’s collections of opioid distributions, which is the main cause for the unfavorable year-over-
year variance. These payments are expected to experience volatility over the upcoming years, as
some companies involved in the settlements elect to pay off their obligations early, while other
companies are still navigating the settlement process and may begin paymnets in the future.
Page 23 of 98
Quarterly Financial Report Through June 2025 21
OTHER FUNDS
Real Estate Excise Tax (REET) revenues are taxes on the sale of both commercial properties and
single-family residences. These collections are receipted into the Real Estate Excise Tax Fund and
transferred to other funds to use for governmental capital projects.
REET revenues collected year-to-date in 2025 total $1.6 million, which is $814,000 or 50%
favorable to budget expectations. According to King County’s assessed valuations of property
taxes, the County has increased in property value by 2%. Combined with lower interest rates
currently, the current climate for real estate sales seem favorable within the State of Washington.
Despite this, year-to -date REET collections in 2025 have decelerated compared to those of last
year, and while collections are favorable to budget projections, it is the lowest second quarter total
since 2023. This is a sign of a cooling market even though interest rates have declined since the
peak in 2023.
2024
Revenue Annual Budget YTD Budget YTD Actual Amount Percentage YTD Actual Amount Percentage
Real Estate Excise Tax 1,800,000$ 827,134$ 1,641,572$ 814,438$ 49.6%2,369,365$ (727,793)$ -30.7%
Total 1,800,000$ 827,134$ 1,641,572$ 814,438$ 49.6%2,369,365$ (727,793)$ -30.7%
Real Estate Excise Tax Revenues
Through June 2025
2025 Favorable (Unfavorable 2025 YTD Actual vs. 2024 Actual
Page 24 of 98
Quarterly Financial Report Through June 2025 22
Overall collections peaked in 2021 following two years of historic low interest rates maintained by
the Federal Reserve in response to COVID-19. However, interest rates were increased
throughout 2022 and 2023 to address severe inflation, cooling the market and lowering REET
collections in those years. The federal funds rate decreased in December of last year and has
remained static throughout th is year. However, the current market data indicates a potential rate
cut in September. With market uncertainty throughout the country, the City is monitoring REET
collections meticulously. Generally, REET revenues have reflected the overall market volatility in
recent years, with a standard deviation of $961,000 or 46% of the average annual collections
over the time period of 2017 to 2024. The large variance from prior year collections is due to two
large purchases of commercial property within City limits last year.
American Rescue Plan Act (ARPA) Fund
In March 2021, the American Rescue Plan Act (ARPA) was signed into law, with the intent of
mitigating the economic impacts related to COVID -19. Through ARPA’s State and Local
Government Fiscal Recovery Fund program, the City was allocated $14.8 million in funding.
Council approved the City’s acceptance of ARPA funds in Resolution #5608. The City has since
used all $14.8 million of the ARPA funds to mitigate the cost of providing public safety services.
As a result of the cost mitigation provided by the ARPA funding, the City has been able to allocate
General Fund funding toward projects approved by the Council ad hoc committee. As of June 30,
2025, the City has been able to spend $1.6 million year-to-date and $8.4 million since 2021 on the
following projects:
Page 25 of 98
Quarterly Financial Report Through June 2025 23
The project Downtown Sidewalk Replacement on Main Street and B Street Plaza Surface
Replacement (cp2321) will construct infrastructure improvements in Downtown Auburn along
Auburn Ave. from East Main St. N to 1st St. NE and on East Main St. from Auburn Ave to B St. NE,
including B St. Plaza. The improvements will support existing and future re -development activities
and replace infrastructure that is at or near the end of its useful service life. Construction has begun
and is anticipated to be completed by the end of 2025. Total spend of this project so far is $827,967
with $198,965 spent in the second quarter.
The project Neighborhood Traffic Calming (cp2305) constructed traffic circles on B St SE at 13 th St
SE and 15th, as well as installed speed cushions on F St SE, G St SE and H St SE between 12 th St
SE and 21st St SE, and K St SE between 17 th St SE and 21st St SE. The purpose of these
improvements is to improve safety for all road users, reduce vehicle speed, and discourage cut -
through vehicle traffic through the construction of physical traffic calming measures. The project
team completed construction in the first quarter of 2025 and is now in the final stages of the project.
The total spent on this project was $200,000 with $37,546 spent in the second quarter.
Beginning in 2023, the Emergency Housing Voucher Program is budgeted at $2 million over the
life of the program . This program assists residents of Auburn who are experiencing homelessness
and drug addiction who are willing to enroll in and complete inpatient treatment. The program will
cover the costs of clean and sober housing of participants for up to three years if the participant
follows the clean and sober housing agreement . There are currently 24 individuals utilizing this
program. Life-to -date project spend is $741,082 with $77,768 occurring in Q2-2025.
The 2024 Neighborhood Street Light Program project (CP2317) includes construction of new
sidewalks, installation of new streetlights, replacement of sidewalk panels, installation of
rectangular rapid flashing beacons with a new raised crosswalk, and implementation of traffic
calming measures throughout the City of Auburn. The project is currently in the construction phase
and is about 95% complete. The project is waiting to lay down paint at a couple of locations. The
project is anticipated to be completed in August . Total spending to date is $1.3 million with $563,840
being spent in the second quarter.
2025 Lifetime Spend
Title Budget Q2 Spend (includes this quarter)Remaining
Completed Projects 3,050,102 - 3,141,384 -
Neighborhood Street Light Program 1,300,000 563,840 1,300,000 -
Neighborhood Traffic Calming 200,000 37,546 200,000 -
Traffic Signals 135,000
Human Services Grants Includes Admin 1,000,000 - 445,882 554,118
Theater 389,700 - - 389,700
Tyler Tech MUNIS Financial Implementation 301,500 - - 301,500
Paving Gravel Roads 135,000 - 137,836 -
2023 Local Street Preservation 501,886 - 48,167 453,719
Translation Services 25,000 - 1,685 23,315
Cyber Security Locks 50,000 - - 50,000
Auburn Way South Median Landscape Replanting/Irrigation 50,000 - 40,187 9,814
Auburn Way South Roundabout 150,000 - 53,231 96,769
Emergency Housing Voucher Program 2,000,000 77,768 741,082 1,258,918
DEI Dashboard (Inclusive Auburn)130,000 - 92,805 37,195
Encampment Cleanup 500,000 - 456,403 43,597
Downtown Sidewalk Replacement on Main Street and B Street Plaza Surface Replacement 1,819,409 198,965 827,967 991,442
Community Violence Intervention Programs (Drone, SPIDR Tech)236,248 - 204,436 31,812
Arts Culture Center Renovations 100,000 - - 100,000
Auburn Ave Theater Demolition 504,350 16,896 455,168 49,182
Signing Bonuses for Police Lateral Hires 200,000 - 240,881 -
Other Projects (not started)1,973,037 - - 1,973,037
Total:14,751,231 895,016 8,387,114 6,364,118
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Quarterly Financial Report Through June 2025 24
Enterprise Funds
Beginning in 2025, both operating and capital utility activities are included within one enterprise
fund. Prior to this year, these activities were divided between operating funds and capital sub -funds.
Operating activities include revenues and expenditure s associated with the operations of the fund,
whereas capital activities relate to construction and capital acquisitions. The net effect of these
activities equals the change in the fund’s working capital balance. The working capital balance is
calculated as current assets minus current liabilities.
In 2025 the City charged all departments the full insurance allocation in the first quarter, rather than
spreading the allocation over twelve months. This resulted in higher year -over-year variances in
interfund charges in the first quarter, which will level out as the year progresses.
Through June 2025, the Water Utility Fund had operating income of $2.9 million (operating
revenues less operating expenditures ), an increase of +$197,000 over the same period last year .
Consistent with expectations, revenue increased compared to the first quarter, and is projected to
peak in the third quarter before declining in the fourth quarter .
Total operating revenues increased $795,000 from $8.8 million through Q2-2024 to $9.6 million
through Q2-2025. This change was largely driven by increases in both rates and water
consumption; charges for service revenues were $9.1 million through Q2 -2025 compared to $8.3
million through Q2-2024, an increase of 9.7%. Other revenues were consistent with last year.
Operating expenses also increased from $6.1 million to $6.7 million (+$598,000). The primary
driver of the increased operating expenses from the prior year was interfund charges (+$561,000),
which includes insurance as mentioned above.
Compared to projections, the fund’s operating income is $1.5 million favorable to the year-to-date
budget. Operating revenues were $1.0 million higher than anticipated through Q2-2025, with
interest earnings outperforming budget expectations by $474,000 along with higher charges for
services (+$514,000). Operating expenditures had a $472,000 favorable variance to budget, driven
by lower-than-expected professional services costs (-$151,000), as well as lower interfund utility
and excise taxes (-$117,000) and external utility expenditures (-$135,000).
Billable water consumption through Q2-2025 totaled 1.3 million ccf (hundred cubic feet), which is
+38,000 ccf, or 3.0% higher than consumption in Q2-2024. Increases in consumption were seen
across nearly all customer classes, with the largest gains seen in manufacturing and irrigation .
These increases were partially offset by a decrease in the commercial customer class.
Page 27 of 98
Quarterly Financial Report Through June 2025 25
Compared to the same period last year, the Sewer Utility Fund saw a slight increase in operating
income, finishing Q2-2025 with $1.2 million in operating income, $75,000 higher than Q2-2024.
Operating revenues were up $341,000 from the same period last year due to strong performance
in charges for City sewer service (+$352,000, or 6.6%), slightly offset by lower interest and other
earnings (-$11,000). These gains were mitigated by higher increases in operating expenses, which
rose $266,000 from $3.5 million through Q2-2024 to $3.8 million through Q2-2025. These increases
were due primarily to higher interfund charges (+$376,000) and personnel costs (+$34,000).
Through Q2-2025, this fund performed better than budget expectations with a $1.5 million favorable
variance in operating revenues, both in charges for service (+$958,000) and interest earnings
(+$571,000). Additionally, operating expenditures had a $652,000 favorable variance compared to
budget expectations, due to savings in personnel costs (+$186,000) and state tax charges
(+$462,000).
The Stormwater Utility Fund had operating income of $1.8 million through Q2-2025, a slight
increase (+$21,000) from the same period last year. While operating revenues were higher through
Q2-2025 compared to Q2-2024 (+$505,000), operating expenses for this fund were also higher
during the same period (+$484,000). Charges for service revenue increased $433,000, or 6.9%,
from Q2-2024. Primary drivers for the increase in operating expenditures were increased service
charges (+$83,000), and interfund charges (+$350,000).
This fund also outperformed budget expectations, with a $800,000 favorable-to-budget variance in
operating income, with operating revenues outperform ing budget expectations by $594,000 due to
higher than anticipated charges for service (+$167,000) and interest earnings (+$425,000).
Meanwhile, expenditures were lower than anticipated (-$206,000), mainly due to the timing of
miscellaneous service charges.
The Solid Waste Utility Fund finished Q2-2025 with operating income of $453,000, which is
$923,000 higher than the -$470,000 operating loss posted in the same period last year. Operating
revenues increased $1.1 million, driven by an increase of $1.2 million (+8.0%) in charges for service
as a direct result of the service rates adopted in Ordinance #6920. Meanwhile, grants, interest
earnings and other revenues experienced a decrease (-$111,000).
Page 28 of 98
Quarterly Financial Report Through June 2025 26
Compared to budget expectations, operating revenues were higher than anticipated (+$477,000)
due primarily to charges for service (+$484,000). Operating expenses were also higher than
expected (+$669,000) due primarily to utility and excise taxes (+$138,000) and payments to the
City’s solid waste provider (+$554,000). In total, the fund had a -$192,000 unfavorable variance in
operating income compared to budget expectations through Q2-2025.
Internal Service Funds
No significant variances are reported in the Insurance, Workers’ Compensation, Facilities,
Innovation & Technology, or Equipment Rental Funds.
Contact Information
This report is prepared by the Finance Department. Additional financial information can also be
viewed at our website: http://www.auburnwa.gov/. For any questions about this report please
contact Jamie Thomas at jdthomas@auburnwa.gov.
Page 29 of 98
City of Auburn
2nd Quarter 2025
Financial Report
CITY COUNCIL STUDY SESSION
SEPTEMBER 8, 2025
Page 30 of 98
General Fund Revenue Overview
Summary
•Collected 11% more
revenue YTD compared
to budget but collected
5% less than YTD last
year
•Underspent the YTD
budgeted expenditures
by 14% and but spent
4% more than YTD last
year
•$2.8 million more has
been spent in 2025
than revenue collected
Page 31 of 98
Tax Revenue
2025 budgeted taxes account for $78.5 million, or 76% of the General Fund budget
◦Compared to 67% in 2024 –making the General Fund more reliant on taxes than other funding sources
Property Tax (32% of taxes)
◦$25 million 2025 budget
◦Collected 100% at year-end
Retail Sales and Use Tax (29% of taxes)
◦$22.6 million 2025 budget
◦$252,000 (2%) over 2025 YTD budget
◦$142,000 (1%) over 2024 YTD actual
Page 32 of 98
Tax Revenue
Page 33 of 98
Tax Revenue
Utility Tax (20% of taxes)
◦$15.8 million 2025 budget
◦Water, Sewer, Storm, Solid Waste Utility Tax rate 9%
($7.8 million of total budget)
◦Electric, Natural Gas, Cable, and Telephone Utility Tax
rate 5% ($8.0 million of total budget)
◦$1.8 million (25%) over 2025 YTD budget
◦Higher than expected water, sewer, storm collections
◦$819,000 (10%) over 2024 YTD actual
◦Higher than expected water, sewer, storm collections
Page 34 of 98
Tax Revenue
Business and Occupation Tax (B&O) (13% of total taxes)
◦$10.0 million 2025 budget
◦$7.1 million collected YTD: $4.5 million in gross receipts tax (64%) and $2.6 million in square foot tax
(36%)
◦Includes Q4 2024, Q1 2025, and 2024 Annual Filings
◦$1.8 million (74%) over 2025 YTD budget*
◦$542,000 (8%) over 2024 YTD actual
Other Taxes (7% of total taxes)
◦$5.1 million 2025 budget
◦Criminal justice sales tax, admissions tax, gambling tax, leasehold excise tax, franchise fees
◦$134,000 (5%) over 2025 YTD budget
◦Due to admission taxes
◦$37,000 (1%) below 2024 YTD actual
◦Due to delinquent admission taxes collected in 2024
Page 35 of 98
Licenses and Permits
Accounts for 3% of the total General Fund
Resources
$3.0 million budgeted in 2025
◦$950,000 is building permit revenue
$151,000 (9%) under 2025 YTD budget
$167,000 (10%) under 2024 YTD actual
◦More business license revenue and building
permit revenue offsetting a $342k decrease in
other permits and licensing
Page 36 of 98
Intergovernmental
Revenues include: Federal/State/Interlocal Grants, Muckleshoot Indian Tribe
(MIT) Compact, State Shared Revenue
◦State Shared Revenue:
◦Streamlined Sales Tax, Motor Vehicle Excise Tax (MVET), Marijuana/Liquor excise taxes, Criminal Justice Sales Tax
$651,000 (20%) under 2025 YTD budget
◦Lower collection of grants, MVET collection, and Liquor Excise tax
$983,000 million (27%) under 2024 YTD collections
◦Timing of contribution payment from the MIT compact, lower collection of grant,
MVET collection, and Liquor Excise tax
Page 37 of 98
Charges for Services
General Government - $7,200 under budget (.3%)
Public Safety - $18,000 below budget (3%)
◦Extra duty services
Development Services - $22,000 above budget (2%)
◦Plan check fees for two large projects
Culture and Recreation - $340,000 above budget (21%)
◦Golf Course Fees ($45,000), Recreation Fees ($221,000), Special Events ($59,000)
Page 38 of 98
Other
Fines and Penalties
◦$584,000 over 2025 YTD budget (50%)
◦B&O fines and penalties ($432,000)
◦343 delinquent businesses paid for taxes going back to 2020
◦Almost half ($190,000) of the total fines and penalties collected were from 4 of the 343 taxpayers
Interest and Investment Earnings
◦$930,000 over 2025 YTD budget (305%)
◦$290,000 over 2024 YTD actual (31%)
Page 39 of 98
General Fund Expenditures
by Department
Page 40 of 98
ARPA Update
Page 41 of 98
Non-General Fund Highlights – Capital
Real Estate Excise Tax (REET)
Total 2025 Budget: $1.8 million
YTD Collections: $1.6 million
$727,000 less than 2024 YTD actual
$814,000 over 2025 YTD budget
Page 42 of 98
Questions
Page 43 of 98
AGENDA BILL APPROVAL FORM
Agenda Subject: Meeting Date:
Ordinance No. 6987 (Krum) (15 Minutes)
An Ordinance for a site-specific rezone of Parcel No. 0004200001 from R-2,
Residential Low to P-1, Public Use
September 8, 2025
Department: Attachments: Budget Impact:
Community Development Ordinance No 6987 Presentation
Slides, Ordinance No. 6987,
Ordinance No. 6987 Exhibit A,
Ordinance No. 6987 - Exhibit B
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
The City of Auburn School District No. 408 is requesting to rezone Parcel No. 0004200001 (a vacant
parcel) using a “Site-Specific Rezone, Category 1” application process in accordance with ACC
18.68.030(A)(2) to rezone a property to a zoning district that implements the land use map
designation applied to the property. The parcel is proposed to be rezoned from R-2, Residential Low
zone to P-1, Public Use zone. This rezone action will bring the parcel into alignment with the land use
designation and allow for site build out a future school campus. The Hearing Examiner held a Public
Hearing on August 20, 2025, and issued a decision on August 27, 2025, recommending approval to
the City Council.
Councilmember: Tracy Taylor Staff: Jason Krum
Page 44 of 98
AUBURN
VALUES
S E R V I C E
ENVIRONMENT
E C O N O M Y
C H A R A C T E R
SUSTAINABILITY
W E L L N E S S
C E L E B R AT I O N
CITY COUNCIL
ORDINANCE NO. 6987
AUBURN SCHOOL DISTRICT
SITE-SPECIFIC REZONE
PRESENTED BY
STEVE STURZA, ASSISTANT DIRECTOR
COMMUNITY DEVELOPMENT DEPARTMENT
SEPTEMBER 8, 2025
Department of Community Development
Planning Building Development Engineering Permit Center
Economic Development Code Enforcement
Page 45 of 98
SUBJECT PARCEL
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Parcel No.
0004200001
Page 46 of 98
SUBJECT PARCEL
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Future ASD
School Site
Page 47 of 98
EXISTING ZONING
PROJECT SUMMARY
EXISTING LAND USE
DESIGNATION
Page 48 of 98
EXISTING LAND USE
DESIGNATION
PROPOSED ZONING
PROJECT SUMMARY
Page 49 of 98
HEARING EXAMINER RECOMMENDATION
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Based upon the application, accompanying materials, Findings of
Fact, and Conclusions of this Staff Report, Hearing Examiner
recommended approval of rezoning of Parcel No. 0004200001
from R-2 Residential Low to P-1, Public Use District to the City
Council.
Page 50 of 98
AUBURN
VALUES
S E R V I C E
ENVIRONMENT
E C O N O M Y
C H A R A C T E R
SUSTAINABILITY
W E L L N E S S
C E L E B R AT I O N
Department of Community Development
Planning Building Development Engineering Permit Center
Economic Development Code Enforcement
Thank you for your time.
Any questions?
Page 51 of 98
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Ordinance No. 6987
September 3, 2025
Page 1 of 4
ORDINANCE NO. 6987
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, FOR A SITE-SPECIFIC REZONE
OF PARCEL NO. 0004200001 FROM R-2, RESIDENTIAL
LOW TO P-1, PUBLIC USE
WHEREAS, Auburn School District No. 408 owns seven (7) contiguous vacant
parcels (King County Parcel Nos. 0004200025, 0004200022, 0004200003, 0004200019,
0004200013, 0004200024, and 0004200001) with the intention to develop them into a
comprehensive school campus, including a high school, elementary, and middle school;
and
WHEREAS, Ordinance No. 6960 relating to the completion of the 2024 Periodic
Comprehensive Plan update re-designated the parcels to the Public/Quasi-Public land
use category; and
WHEREAS, six of the seven parcels were rezoned to P-1 Public Use zone,
however parcel no. 0004200001 (the subject parcel) was inadvertently excluded from the
rezoning action and remained zoned as R-2 Residential Low zone which the parcel is
specifically proposed to serve as the new middle school; and
WHEREAS, Camie Anderson, of Shockey Planning Group, Applicant’s
Representative, on behalf of Auburn School District No. 408 submitted a site-specific
rezone application on May 27, 2025 for Parcel No. 0004200001 to rezone the parcel from
R-2 Residential Low to P-1 Public Use zone; and
WHEREAS, the project is exempt from SEPA review in accordance with WAC 197-
11-800(6)(c); and
WHEREAS, after proper notice published in the City’s official newspaper at least
Page 52 of 98
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Ordinance No. 6987
September 3, 2025
Page 2 of 4
ten (10) days prior to the date of public hearing, the City of Auburn Hearing Examiner
conducted a public hearing, heard public testimony, and took evidence and exhibits into
consideration; and
WHEREAS, on August 27, 2025 the Hearing Examiner recommended approval of
the site-specific rezone application and made and entered Findings of Fact and
Conclusions of Law based thereon in support of that recommendation, as set forth in the
Findings of Fact, Conclusions of Law and Recommendation of the Hearing Examiner
attached hereto, marked as Exhibit “A” and incorporated herein by this reference; and
WHEREAS, the City Council concurs with the Findings of Fact and Conclusions of
Law of the Hearing Examiner; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Adoption of the Hearing Examiner’s Findings of Fact and
Conclusions of Law. The City Council adopts the Findings of Fact and Conclusions of
Law based thereon, made and entered by the Hearing Examiner in support of the
recommendation to the City Council, as set forth in the “Findings of Fact, Conclusions of
Law and Recommendation” for the Auburn School District No. 408, City File Number
REZ25-0002, dated August 27, 2025 attached hereto, included as Exhibit “A”.
Section 2. Approval. The City Council adopts and approves the request to
change the zoning of King County Parcel No. 0004200001 from R-2 Residential Low to
P-1 Public Use, shown in Exhibit “B”.
Section 3. Constitutionality or Invalidity. If any section, subsection clause or
phase of this Ordinance is for any reason held to be invalid or unconstitutional such
Page 53 of 98
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Ordinance No. 6987
September 3, 2025
Page 3 of 4
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this Ordinance, as it is being hereby expressly declared that this
Ordinance and each section, subsection, sentence, clause and phrase hereof would have
been prepared, proposed, adopted and approved and ratified irrespective of the fact that
any one or more section, subsection, sentence, clause or phrase be declared invalid or
unconstitutional.
Section 4. Recordation. Upon the passage, approval and publication of this
Ordinance as provided by law, the City Clerk of the City of Auburn shall cause this
Ordinance to be recorded in the office of the King County Auditor’s Division.
Section 5. Implementation. The Mayor is hereby authorized to implement
such administrative procedures as may be necessary to carry out the directions of this
legislation.
Page 54 of 98
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Ordinance No. 6987
September 3, 2025
Page 4 of 4
Section 6. Effective Date. This Ordinance shall take effect and be in force five
(5) days from and after its passage, approval, and publication, as provided by law.
INTRODUCED: ________________________
PASSED: _____________________________
APPROVED: __________________________
CITY OF AUBURN
_____________________________________
NANCY BACKUS, MAYOR
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________
Shawn Campbell, City Clerk Jason Whalen, City Attorney
Published: ____________________________________________________________
Page 55 of 98
Rezone p.1 Findings, Conclusions and Recommendation
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BEFORE THE HEARING EXAMINER FOR THE CITY OF AUBURN
Phil Olbrechts, Hearing Examiner
RE: Cascade Middle School
Rezone
REZ25-0002
FINDINGS OF FACT, CONCLUSIONS
OF LAW AND RECOMMENDATION.
INTRODUCTION
The Auburn School District (ASD) has requested a rezone to reclassify approximately
35.2 acres from R-2 (Residential Low) to P-1 (Public Use District) located in the
southeastern corner of the Lakeland Hills South Planned Unit Development east of I
ST NE with access from 40th ST NE. It is recommended that the City Council
approve the rezone.
The rezone area is currently designated Public/Quasi-Public in the City’s
Comprehensive Land Use Map. The only authorized implementing zones for this
Comprehensive Plan designation are Institutional (I) and Public Use (P-1). The
current R-2 designation is inconsistent with the Comprehensive Plan designation.
The City Council changed the Comprehensive Plan Land Use Map designations of
the rezone area and several parcels adjoining to the north in 2024 to facilitate the
replacement of the Cascade Middle School and other school campus development.
The proposed rezone area was mistakenly omitted from a similar rezone from R-2 to
P-1 for the parcels to the north. The proposed rezone is necessary for replacement of
the middle school and further development of the school campus.
ORAL TESTIMONY
Dinah Reed, Auburn City Planner, summarized the staff report.
Jeff Grose, Executive Director for Auburn School District Capital Projects, spoke in
favor of the project. Mr. Grose noted that the rezone will allow the District to replace
an aging school, develop a larger site with better facilities for instruction, for outdoor
use and for the community. Secondly, a major benefit is that the rezone will enable
Page 56 of 98
Rezone p. 2 Findings, Conclusions and Recommendation
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the District to eventually develop the rest of the 70 acres into a school campus. The
campus has a middle school, high school, and elementary school.
No one else testified at the hearing.
EXHIBITS
Exhibits 1-5 listed at page 10 of the July 28, 2025 staff report were admitted into the
record during the August 20, 2025 public hearing. A May 27, 2025 compliance
narrative written by the Applicant was admitted into the record during the public
hearing.
FINDINGS OF FACT
Procedural:
1. Applicant. Jeff Grose, Executive Director-Capital Projects Auburn School
District, 915 Fourth ST NE, Auburn, WA 98002
2. Hearing. The Hearing Examiner conducted a hearing on the application at
5:30 p.m. at Auburn City Hall in the Council Chambers on August 20, 2025.
Substantive:
3. Site/Proposal Description. The Auburn School District has requested a
rezone to reclassify approximately 35.2 acres from R-2 (Residential Low) to P-1
(Public Use District) located in the southeastern corner of the Lakeland Hills South
Planned Unit Development east of I ST NE with access from 40th ST NE.
The subject property is rectangular in shape, approximately 2,277 ft. in width (east to
west) and 700 ft. in length (north to south). It is flat with natural vegetation as well as
a trail that traverses the property. A portion of the southwest corner contains a
wetland encroachment.
The subject property is located south of 5 vacant parcels totaling approximately 37.3
acres owned by Auburn School District No. 4. The subject site is part of seven
contiguous parcels owned by ASD, approximately 73 acres in total. ASD intends to
develop these parcels into a comprehensive school campus, including an elementary
school, middle school, and high school.
The ASD seven parcels were re-designated to the Public/Quasi-Public land use
category as part of the Periodic Update to the Auburn Comprehensive Plan in 2024.
Concurrently, six of the seven parcels were rezoned to P-1 Public Use Zone.
However, parcel number 000420-0001 (the subject parcel) was inadvertently
Page 57 of 98
Rezone p. 3 Findings, Conclusions and Recommendation
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2
3
4
5
6
7
8
9
10
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12
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14
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excluded from the rezoning action and remain zoned as R-2. The subject parcel is
proposed to serve as the new middle school.
4. Characteristics of the Area. As previously noted, the parcels to the north
are zoned Public and comprise part of an ASD campus. Directly to the south of the
subject parcel is “The River” manufactured home park. To the west is the Velvet
Homes Estates subdivision, and to the east is the Green River.
5. Adverse Impacts. No adverse impacts are anticipated from the proposal.
The proposal adds to an existing campus and will just result in the replacement of the
existing Cascade Middle School in addition to providing additional space for
scholastic and community amenities. Traffic and other project specific impacts will
be addressed and mitigated during site plan and other development permit review.
CONCLUSIONS OF LAW
Procedural:
1. Authority of Hearing Examiner. ACC 18.68.030(A)(1) grants the Hearing
Examiner with the authority to review and make a recommendation on rezone
requests to the City Council.
Substantive:
2. Zoning Designation. The property is currently zoned R-2 (Residential Low).
3. Review Criteria. ACC 18.68.040 sets the review criteria for site specific rezones.
Applicable criteria are quoted in italics below and applied via corresponding
conclusions of law.
ACC 18.68.040: There is no presumption of validity for a rezone (zoning map
amendment) and the applicant has the burden of proof in establishing compliance
with all of the following criteria:
A. The rezone implements the policies of the comprehensive plan; or
4. Criterion met. The criterion is met. As previously noted, the Comprehensive
Plan Land Use Map designation for the project site is Public/Quasi-Public. The
current R-2 zoning of the subject parcel is inconsistent with the map designation. The
only authorized implementing zones for the Public/Quasi-Public designation are
Institutional (1) and Public Use (P-1). The proposed P-1 rezone is the most
appropriate and compatible zone of the two options because it enables the further
development of the adjoining Auburn School District campus.
Page 58 of 98
Rezone p. 4 Findings, Conclusions and Recommendation
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ACC 18.68.040B. The rezone is necessary due to a substantial change in
circumstances since the current zoning; and
5. Criterion optional. The criterion doesn’t need to be met. As noted in ACC
18.68.040A and B, only one of A or B needs to be met to validate the rezone. The
proposal is clearly necessary to implement the comprehensive plan because current
zoning is not consistent with the Comprehensive Plan Land Use Map. The proposal
is necessitated by changes in circumstances in any event. The Cascade Middle
School needs to be replaced since the subject parcel was last zoned. The Auburn
School District also has plans to further develop the subject parcel as part of its larger
school campus.
ACC 18.68.040C. The rezone bears a substantial relationship to the public health,
safety, or welfare.
6. Criterion Met. The criterion is met. The proposal will replace an aging middle
school and scholastic and community amenities without any significant adverse
impacts. In this regard the proposal bears a substantial relationship to the public
health and welfare.
RECOMMENDATION
It is recommended that the City Council approve the requested REZ25-0002 rezone
from R-2 to P-1.
Dated this 27th day of August, 2025.
________________________________
Phil Olbrechts,
City of Auburn Hearing Examiner
Page 59 of 98
Ordinance No. 6987 Zoning Map Amendment
Map ID: 6350
Printed On: 8/26/2025
Information shown is for general reference purposes
only and does not necessarily represent exact
geographic or cartographic data as mapped. The
City of Auburn makes no warranty as to its accuracy.
0 0.05 0.1 0.15 0.2
Miles
EXISTING
PROPOSED
Proposed Zoning
Auburn City Limits
R-4 Residential High
R-2 Residential Low
Open Space
P-1 Public Use District
Existing Zoning
R-NM Neighborhood Mixed Use
Residential Manufactured/
Mobile Home Community
Planned Unit Development District
C-2 Heavy Commercial
Page 60 of 98
AGENDA BILL APPROVAL FORM
Agenda Subject: Meeting Date:
Ordinance No. 6988 (Krum) (15 Minutes)
An Ordinance for a major amendment to the Lakeland Hills South PUD
boundary to extract fourteen (14) parcels
September 8, 2025
Department: Attachments: Budget Impact:
Community Development Ordinance 6988 Presentation
Slides, Ordinance No. 6988,
Ordinance No. 6988 - Exhibit A,
Ordinance No. 6988 - Exhibit B
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
The City of Auburn School District No. 408 is requesting to amend the Lakeland Hills South Planned
Unit Development (PUD) boundary by extracting 14 parcels through a Major PUD Amendment
(PLT25-0005). The application process is in accordance with ACC 18.76.120. The Lakeland Hills
South PUD was originally established in the 1990s and the proposed area to be extracted
(approximately 43.6 acres) was created to provide enhanced flexibility and alternative residential
development standards for a mix of residential densities. The subject site is no longer intended for
residential development but proposed instead for a new school campus. The Hearing Examiner held
a Public Hearing on August 20, 2025, and issued a decision on August 28, 2025, recommending
approval to the City Council.
Councilmember: Tracy Taylor Staff: Jason Krum
Page 61 of 98
AUBURN
VALUES
S E R V I C E
ENVIRONMENT
E C O N O M Y
C H A R A C T E R
SUSTAINABILITY
W E L L N E S S
C E L E B R AT I O N
CITY COUNCIL
ORD. NO. 6988
AUBURN SCHOOL DISTRICT
PUD MAJOR AMENDMENT
PRESENTED BY
STEVE STURZA, ASSISTANT DIRECTOR
COMMUNITY DEVELOPMENT DEPARTMENT
SEPTEMBER 8, 2025
Department of Community Development
Planning Building Development Engineering Permit Center
Economic Development Code Enforcement
Page 62 of 98
SUBJECT PARCELS
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Parcel Nos.
0520053001
0520053006
0520053014
0520053015
0520053016
0520053034
0520053035
0520053036
0520053040
0520053041
0520053046
0520053055
0520053060
0520054081
Page 63 of 98
SUBJECT PARCELS
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Parcels to be
extracted
Page 64 of 98
EXCERPT LAND USE MAP
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Existing Land Use
Page 65 of 98
EXCERPT ZONING MAP
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Existing Zoning
Page 66 of 98
EXCERPT FINAL DEVELOPMENT PLAN
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Page 67 of 98
HEARING EXAMINER RECOMMENDATION
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Based upon the application, accompanying materials, Findings of
Fact, and Conclusions of this Staff Report, Hearing Examiner
recommends approval to amend the boundary of the existing
Lakeland Hills PUD to extract 14 of the District’s parcels out of the
Lakeland Hills South PUD
Pierce County Parcel Nos. to be removed from PUD
0520053015052005301405200530060520053001
0520053036052005303505200530340520053016
0520053055052005304605200530410520053040
05200540810520053060
Page 68 of 98
AUBURN
VALUES
S E R V I C E
ENVIRONMENT
E C O N O M Y
C H A R A C T E R
SUSTAINABILITY
W E L L N E S S
C E L E B R AT I O N
Department of Community Development
Planning Building Development Engineering Permit Center
Economic Development Code Enforcement
Thank you for your time
Any questions?
Page 69 of 98
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Ordinance No. 6988
September 3, 2025
Page 1 of 4
ORDINANCE NO. 6988
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, FOR A MAJOR AMENDMENT
TO THE LAKELAND HILLS SOUTH PUD BOUNDARY TO
EXTRACT FOURTEEN (14) PARCELS
WHEREAS, Auburn School District No. 408 owns fifteen (15) contiguous vacant
parcels (Pierce County Parcel Nos. 0520053001, 0520053006, 0520053013, 0520053014,
0520053015, 0520053016, 0520053034, 0520053035, 0520053036, 0520053040,
0520053041, 0520053046, 0520053055, 0520053060, and 0520054081); and
WHEREAS, the area was created to provide enhanced flexibility and alternative
residential development; however, the site is no longer intended for residential
development but instead for a new middle school; and
WHEREAS, one of the fifteen parcels (Pierce County Parcel No. 0520053013) is
outside of the PUD and is zoned R-2 Residential Low; and
WHEREAS, fourteen of the said parcels are to be extracted from the Lakeland Hills
South PUD Boundary through a Major PUD Amendment; and
WHEREAS, the Auburn School District’s compilation of parcels is bisected by a
pipeline/powerline right-of-way owned by Northwest Pipeline Corporation and a parcel
containing a water tower owned by the City of Bonney Lake which are not part of the
PUD; and
WHEREAS, Camie Anderson, of Shockey Planning Group, Applicant’s
Representative, on behalf of Auburn School District No. 408 submitted a major
amendment to the Lakeland Hills South PUD boundary in conjunction with a
Comprehensive Plan Land Use Map Amendment to be processed under a separate
Page 70 of 98
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Ordinance No. 6988
September 3, 2025
Page 2 of 4
procedure, on June 3, 2025; and
WHEREAS, a SEPA checklist was submitted with the major amendment under
City File No. SEP25-0010 and a Determination of Non-significance in accordance with
WAC 197-11-800(6)(c), and a Notice of Application and Notice of Public Hearing was
issued on July 18, 2025 consistent with the noticing requirements of ACC 14.07.040; and
WHEREAS, after proper notice published in the City’s official newspaper at least
ten (10) days prior to the date of public hearing, the City of Auburn Hearing Examiner
conducted a public hearing, heard public testimony, and took evidence and exhibits into
consideration; and
WHEREAS, on August 28, 2025 the Hearing Examiner recommended approval of
the major amendment to the PUD and made and entered Findings of Fact and
Conclusions of Law based thereon in support of that recommendation, as set forth in the
Findings of Fact, Conclusions of Law and Recommendation of the Hearing Examiner
attached hereto, marked as Exhibit “A” and incorporated herein by this reference; and
WHEREAS, the City Council concurs with the Findings of Fact and Conclusions of
Law of the Hearing Examiner; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Adoption of the Hearing Examiner’s Findings of Fact and
Conclusions of Law. The City Council adopts the Findings of Fact and Conclusions of
Law based thereon, made and entered by the Hearing Examiner in support of the
recommendation to the City Council, as set forth in the “Findings of Fact, Conclusions of
Law and Recommendation for the Auburn School District No. 408, City File Number
Page 71 of 98
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Ordinance No. 6988
September 3, 2025
Page 3 of 4
PLT25-0005, dated August 28, 2025, attached hereto, marked as Exhibit “A”.
Section 2. Approval. The City Council adopts and approves the request to
remove Pierce County Parcel Nos. 0520053001, 0520053006, 0520053014, 0520053015,
0520053016, 0520053034, 0520053035, 0520053036, 0520053040, 0520053041,
0520053046, 0520053055, 0520053060, and 0520054081 from the Lakeland Hills South
PUD boundary shown in Exhibit “B”.
Section 3. Constitutionality or Invalidity. If any section, subsection clause or
phase of this Ordinance is for any reason held to be invalid or unconstitutional such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this Ordinance, as it is being hereby expressly declared that this
Ordinance and each section, subsection, sentence, clause and phrase hereof would have
been prepared, proposed, adopted and approved and ratified irrespective of the fact that
any one or more section, subsection, sentence, clause or phrase be declared invalid or
unconstitutional.
Section 4. Recordation. Upon the passage, approval and publication of this
Ordinance as provided by law, the City Clerk of the City of Auburn shall cause this
Ordinance to be recorded in the office of the King County Auditor’s Division.
Section 5. Implementation. The Mayor is hereby authorized to implement
such administrative procedures as may be necessary to carry out the directions of this
legislation.
Page 72 of 98
- - - - - - - - - - - - - - - -
Ordinance No. 6988
September 3, 2025
Page 4 of 4
Section 6. Effective Date. This ordinance shall take effect and be in force five
(5) days from and after its passage, approval, and publication, as provided by law.
INTRODUCED: ________________________
PASSED: _____________________________
APPROVED: __________________________
CITY OF AUBURN
_____________________________________
NANCY BACKUS, MAYOR
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________
Shawn Campbell, City Clerk Jason Whalen, City Attorney
Published: ____________________________________________________________
Page 73 of 98
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PUD AMENDMENT - 1
BEFORE THE HEARING EXAMINER FOR THE CITY OF AUBURN
Phil Olbrechts, Hearing Examiner
RE: Auburn School District
Major PUD Amendment
File No. PLT25-0005
FINDINGS OF FACT, CONCLUSIONS
OF LAW AND RECOMMENDATION
SUMMARY
The Auburn School District requests approval of a major amendment to the Lakeland Hills South
Planned Unit Development (PUD) to extract approximately 43.6 acres from the PUD to change their
use from mixed residential use to P-1 for construction of a new middle school. It is recommended that
the City Council approve the requested amendment.
EXHIBITS
Exhibits 1-7 identified at page 9 of the August 5, 2025 staff report were admitted into the record during
the August 20, 2025 public hearing. The following exhibits were also admitted during the hearing:
Exhibit 8: Staff PowerPoint presentation.
Exhibit 9: June 3, 2025 Applicant compliance narrative.
Exhibit 10: August 4, 2025 Staff and Applicant response to public comments.
ORAL TESTIMONY
Dinah Reed, Auburn City Planner, summarized the staff report.
Page 74 of 98
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PUD AMENDMENT - 2
Jeff Grose, Executive Director for Auburn School District Capital Projects, spoke in favor of the project. Mr. Grose
noted that the proposed amendment will allow the construction of a new middle school instead of just replacing one
as done for the REZ25-0002 rezone. Currently there are 1,000 middle school students in portable class rooms. The
new school will accommodate 800 of those students.
No one else testified at the hearing.
FINDINGS OF FACT
Procedural:
1. Applicant. Jeff Grose, Executive Director-Capital Projects Auburn School District, 915 Fourth
ST NE, Auburn, WA 98002.
2. Hearing. The Hearing Examiner conducted a hearing on the application at 5:30 p.m. at Auburn
City Hall in the Council Chambers on August 20, 2025.
Substantive:
3, Site/Proposal Description. The Auburn School District requests approval of a major amendment
to the Lakeland Hills South Planned Unit Development (PUD) to extract approximately 43.6 acres from
the PUD to change their use from mixed residential use to P-1 zoned use for construction of a new
middle school.
The amendment area is located in the Lakeland Hills South Planned Unit Development (PUD) south of
the intersection of Lake Tapps Parkway SE and Sumner Tapps Highway East. The Lakeland Hills South
PUD was originally established in the 1990’s. The area subject to the amendment was created to provide
enhanced flexibility and alternative residential development standards for a mix of residential densities.
The PUD amendment extracts 14 contiguous parcels owned by ASD within the PUD.
The Auburn School District’s compilation of parcels is partially bisected by Pierce County parcel
0520053025, which is a pipeline/powerline right-of-way owned by Northwest Pipeline Corporation, and
parcel no. 0520053072, containing a water tower owned by the City of Bonney Lake. These two parcels
are not a part of the application.
4. Surrounding Uses. Surrounding uses are composed of vacant and residentially developed
property with environmentally sensitive areas to the west and Lake Tapps to the southeast.
5. Adverse Impacts. No adverse impacts are anticipated as a result of the amendment. Specific
impacts are addressed as follows:
A. Infrastructure/Public Services. The proposal will be served by adequate and appropriate
infrastructure and public services.
Page 75 of 98
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PUD AMENDMENT - 3
Future development of the site will require a separate SEPA environmental review, civil
permit, as well as building permit. Under these permit applications, the future middle
school will provide code-compliant street frontage improvements, public facilities, and
utility extensions.
The Applicant notes that primary vehicular access will be from Sumner Tapps Highway
East, aligned with the entrance to Four Lakes Apartment Homes, via a new single-land
roundabout. In addition, a gated, access-controlled bus entrance and exit will be located
on 16th Street East, forming the new fourth leg of the existing signalized intersection.
Pedestrian and non-motorized access will be enhanced with a new 10-foot wide sidewalk
and upgraded lighting along the site’s entire street frontage. Open space proposed on-site
includes permitter landscaping, a track and field facility, soccer/football/lacrosse fields,
baseball and softball fields, and a protected, undisturbed wetland area (Wetland A along
the western boundary).
The City of Bonney Lake has commented that ASD is in the process of obtaining a
certificate of water availability, instantaneous fire flow, and water modeling from the City
of Bonney Lake. Ex. 10. Bonney Lake will advise ASD of water service connection
requirements as part of this review process.
Jorden Schenk, a representative of the Four Lakes Apartments, located to the north of the
project, provided written comment. Mr. Schenk expressed concern about impaired access
to the apartments during construction of the middle school. He was assured by ASD in
Ex. 10 that access would be maintained. He was also assured that a City-approved traffic
control pan would govern any access modifications during construction. Finally, ASD
stated that the lighting of the sports fields would produce minimal light spill beyond ASD
property lines at 0 to 0.1 footcandles. Light impacts will be addressed by the City during
development permit review.
B. Compatibility. The proposed amendment is compatible with surrounding uses. The area
proposed to be removed from the Lakeland Hills South PUD is a relatively small area,
approximately 44 acres compared to the 725 acres that will still comprise the boundaries
of PUD. As noted in the ASD narrative, Ex. 9, the project area will retain its critical area
tract that protects on-site wetlands. That tract serves as an aesthetic buffer to adjoining
uses. As shown in the aerial photograph of the staff report, existing residential uses are
separated from the project site by major roads or heavily forested areas. There is sufficient
space to buffer residential development of adjoining residential development if that is
found necessary.
Page 76 of 98
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PUD AMENDMENT - 4
CONCLUSIONS OF LAW
1. Authority. Per ACC 14.03.030, a preliminary plat is a Type III Decision which are quasi-judicial
final decisions made by the Hearing Examiner.
2. Zoning. The subject property is zoned Lakeland Hills South PUD.
3. Review Criteria/Deviations Approved. ACC 18.79.140 governs the review criteria for major
PUD amendments. Applicable criteria are quoted below in italics and applied through corresponding
conclusions of law.
ACC 18.76.140: Applications for a major amendment to a PUD shall only be approved if
sufficient findings of facts are drawn to support the following:
A. Adequate provisions are made for the public health, safety and general welfare and for open
spaces, drainage ways, streets, alleys, other public ways, water supplies, sanitary wastes, parks,
playgrounds, or sites for schools.
4. The criterion is met for the reasons identified in Finding of Fact 5A.
ACC 18.76.140B: The proposed major amendment to the PUD is in accordance with the goals,
policies and objectives of the comprehensive plan.
5. The criterion is met. The staff report notes that ASD has requested a comprehensive plan
amendment to change the comprehensive plan land use map designation of the project site from
Residential 2 to Public/Quasi-Public. The Applicant will also be seeking a rezone of the project site
from R-2 to P-1 Public Use. If approved, these comprehensive plan and zoning designations will
provide consistency between the planned new middle school ad City goals and policies. Construction
of the middle school as facilitated by the PUD amendment is also consistent with the goals and policies
of the City’s capital facilities element, which seeks to assure adequate and appropriate capital facilities
such as schools.
ACC 18.76.140C: The major amendment is consistent with the purpose of this chapter, ACC
18.76.010, provides for the public benefits required of the development of PUDs and does not result in
only increasing the number of units that would otherwise be attained through a development using the
existing zoning and subdivisions standards.
6. The criterion appears to be met.
Unfortunately the criterion is not the model of clarity. Fo that reason the staff and Applicant have not
applied it in the way intended. The staff report and Applicant analysis focus upon the fact that the
amendment doesn’t add any dwelling units. That fact is not pertinent to the criterion. The criterion
should be construed as prohibiting PUD amenities that were used to justify an increase in dwelling units
beyond those authorized for a preliminary plat.
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PUD AMENDMENT - 5
The criterion requires that the amendment be consistent with the purpose of PUDs. In simplest terms,
PUDs authorize increases in authorized densities and the waiver of other development standards in
exchange for superior design features. ACC 18.76.010 reflects this trade off by providing that in
exchange for the waiver and modification of development standards,
“the city will require the PUD to result in a significantly higher quality development, generate more
public benefit and be a more sensitive proposal than would have been the case with the use of standard
zoning or subdivision procedures” (as quoted from the ACC 18.76.140C criterion above).
Given the purpose of PUDs, it’s clear that the criterion above seeks to prevent the removal of PUD
amenities used to justify an increase in authorized dwelling units, i.e. resulting in a PUD that “is only
increasing the number of units that would otherwise be attained through a development using the
existing zoning and subdivisions standards.” A simple example illustrates this point. If the Lakeland
Hills PUD were authorized to have an extra 20 dwelling units solely because it offered an extra 10 acres
of open space, then an amendment that removed that 10 acres would result in a PUD that “is only
increasing the number of units that would otherwise be attained through a development using the
existing zoning and subdivisions standards.”
The record doesn’t provide much information on what, if any, PUD benefits may be lost by the
amendment. As far as can be ascertained from the maps included in the staff report, there are no PUD
amenities lost by the amendment. Staff should clarify this issue for the Council1.
ACC 18.76.140D: The proposed major amendment to the PUD conforms to the general purposes of
other applicable policies or plans which have been adopted by the city council.
7. The criterion is met. The reference to “other” policies or plans in the criterion above is construed
as referencing plans other than the comprehensive plan. The comprehensive plan is already addressed
in prior amendment criteria quoted above. City staff have not identified any policies other than the
comprehensive plan that address the proposed PUD amendment. The only other applicable plan that is
likely implicated by the amendment is the ASD capital facilities plan. The ASD capital facilities plan
appears to be adopted into Page CFE-1 of the City’s comprehensive plan. The PUD amendment is
presumably consistent with this plan.
ACC 18.76.140E: The approval of the major amendment will have no more of an adverse impact upon
the surrounding area than the approved Lakeland Hills South PUD as shown on the official Lakeland
plan map.
8. The criterion is met. The proposal is likely to have nominal impact on surrounding uses.
1 Generally new evidence cannot be considered after the close of a public hearing. However, the Council can take “judicial
notice” of prior City Council and hearing examiner decisions. Staff should be able to identify whether any PUD amenities
are lost by the proposed amendment by referencing the decision that approved the Lakeland Hills PUD.
Page 78 of 98
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PUD AMENDMENT - 6
RECOMMENDATION
It is recommended that the City Council approve the PLT25-0005 PUD amendment.
Dated this 28th day of August 2025.
______________________________
Phil Olbrechts,
City of Auburn Hearing Examiner
Page 79 of 98
Ord. No. 6988 Exhibit B Map Amendment
Auburn City LimitsLakeland Hills South PUD
R-2 Residential Low
Open Space
Parcels to be extracted
Subject Parcels
Map ID: 6347
Printed On: 8/26/2025 Information shown is for general reference purposes
only and does not necessarily represent exact
geographic or cartographic data as mapped. The
City of Auburn makes no warranty as to its accuracy.
0 0.1 0.2 0.3
Miles
Page 80 of 98
AGENDA BILL APPROVAL FORM
Agenda Subject: Meeting Date:
Ordinance No. 6994 (Gaub) (10 Minutes)
An Ordinance granting Ezee Fiber Texas, LLC a franchise for wireline
telecommunications
September 8, 2025
Department: Attachments: Budget Impact:
Public Works Draft Ordinance No. 6994
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
Section 20.02.040 of the Auburn City Code requires a franchise for any utility or telecommunications
carrier or operator to use public ways of the City and to provide services to persons or areas inside or
outside of the City.
Ezee Fiber Texas, LLC has applied for a franchise agreement to install fiber optic cable and
electronic infrastructure in the public ways within the City limits. Ezee Fiber intends to provide
business and residential data and telecommunications services to customers located inside the City
limits. The proposed agreement is consistent with the City’s standard franchise agreement language.
A Public Hearing to consider this application and take public comment is scheduled before the City
Council on September 15, 2025, in accordance with Auburn City Code 20.04.040.
Councilmember: Tracy Taylor Staff: Ingrid Gaub
Page 81 of 98
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Ordinance No. 6994
Franchise Agreement No. FRN25-0002
July 28, 2025
Page 1 of 17
ORDINANCE NO. 6994
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF AUBURN, WASHINGTON, GRANTING TO
EZEE FIBER TEXAS, LLC, A DELAWARE LIMITED
LIABILITY COMPANY, A FRANCHISE FOR
WIRELINE TELECOMMUNICATIONS
WHEREAS, Ezee Fiber Texas, LLC (“Franchisee”) has applied for a non-
exclusive Franchise for the right of entry, use, and occupation of certain public
ways within the City of Auburn (“City”), expressly to install, construct, erect,
operate, maintain, repair, relocate and remove its facilities in, on, over, under,
along and/or across those public ways; and
WHEREAS, following proper notice, the City Council held a public hearing
on Franchisee’s request for a Franchise; and
WHEREAS, based on the information presented at such public hearing, and
from facts and circumstances developed or discovered through independent study
and investigation, the City Council now deems it appropriate and in the best
interest of the City to grant the Franchise to Franchisee.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN
WASHINGTON, DO ORDAIN as follows:
Section 1. Definitions
For the purpose of this Franchise and the interpretation and enforcement thereof,
definitions of words and phrases shall be in accordance with the definitions set
forth in this Franchise and in Auburn City Code 20.02.020. If there is a conflict
between any of the definitions set forth in this Franchise and the definitions set
forth in Auburn City Code 20.02.020, the definitions in this Franchise shall govern
to the extent of such conflict.
A. “ACC” means the Auburn City Code.
B. “Franchise” means this agreement approved by Ordinance No.
6994 of the City which authorizes Franchisee Facilities to provide Franchisee
Services in the Franchise Area.
C. “Franchisee’s Facilities” means fiber optic and broad band
communications services constructed and operated within the public ways
including all cables, wires, conduits, ducts, pedestals, and any associated
Page 82 of 98
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Ordinance No. 6994
Franchise Agreement No. FRN25-0002
July 28, 2025
Page 2 of 17
converter equipment or other items necessary for Telecommunications Services
as defined in RCW 35.99.010(7), that are located in the Franchise Area.
Franchisee’s Facilities do not include facilities used to provide wireless services,
including antennas or other equipment, appliances, attachments and
appurtenances associated with wireless telecommunications facilities.
Franchisee’s facilities do not include small wireless facilities, microcell, minor
facility, or small cell facilities, as defined in RCW 80.36.375. Franchisee’s facilities
do not include any facilities that are not located within the Franchise Area or that
are covered under a separate franchise agreement or agreement.
D. “Franchisee’s Services” means any telecommunications service,
telecommunications capacity, or dark fiber, provided by the Franchisee using its
Facilities, including, but not limited to, the transmission of voice, data or other
electronic information, or other subsequently developed technology that carries a
signal over fiber optic cable. Franchisee’s Services will also include non-switched,
dedicated and private line, high capacity fiber optic transmission services to firms,
businesses or institutions within the City and other lawful services not prohibited
by this Ordinance However, Franchisee’s Services will not include the provision
of “cable services”, as defined by 47 U.S.C. §522, as amended, for which a
separate franchise would be required.
Section 2. Grant of Right to Use Franchise Area
A. Subject to the terms and conditions stated in this Franchise, the City
grants to the Franchisee general permission to enter, use, and occupy the
Franchise Area, located within the incorporated area of the City. Franchisee may
locate the Franchisee’s Facilities within the Franchise Area subject to all applicable
laws, regulations, and permit conditions.
B. The Franchisee is authorized to install, remove, construct, erect,
operate, maintain, relocate, upgrade, replace, restore, and repair Franchisee’s
Facilities to provide Franchisee’s Services in the Franchise Area.
C. This Franchise does not authorize the use of the Franchise Area for
any facilities or services other than Franchisee Facilities and Franchisee Services,
and it extends no rights or privilege relative to any facilities or services of any type,
including Franchisee Facilities and Franchisee Services, on public or private
property elsewhere within the City.
D. This Franchise is non-exclusive and does not prohibit the City from
entering into other agreements, including franchise agreements, impacting the
Franchise Area, for any purpose that does not interfere with Franchisee’s rights
under this Franchise.
Page 83 of 98
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Ordinance No. 6994
Franchise Agreement No. FRN25-0002
July 28, 2025
Page 3 of 17
E. Except as explicitly set forth in this Franchise, this Franchise does
not waive any rights that the City has or may acquire with respect to the Franchise
Area or any other City roads, public ways, or property. This Franchise will be
subject to the power of eminent domain, and in any proceeding under eminent
domain, the Franchisee acknowledges its use of the Franchise Area shall have no
value.
F. The City reserves the right to change, regrade, relocate, abandon, or
vacate any public way within the Franchise Area. If, at any time during the term of
this Franchise, the City vacates any portion of the Franchise Area containing
Franchisee Facilities, the City may reserve an easement for public utilities within
that vacated portion, pursuant to Chapter 35.79.030 RCW, within which the
Franchisee may continue to operate any existing Franchisee Facilities under the
terms of this Franchise for the remaining period set forth under Section 4.
G. The Franchisee agrees that its use of Franchise Area shall at all
times be subordinated to and subject to the City and the public’s need for municipal
infrastructure, travel, and access to the Franchise Area, except as may be
otherwise required by law.
H. The Franchisee agrees to provide the City with complete contact
information for any client, lessee, sub-lessee, customer, or other entity that
Franchisee allows to utilize, control, access, or otherwise provides services to, who
will also use the Franchisee Facilities to provide services to their clients and
customers either inside or outside the City limits. Such contact information shall
be provided to the City a minimum of sixty (60) days prior to the start of such
anticipated use so that the City may determine if Franchisee’s client, lessee, sub-
lessee, customer, or other entity is required to obtain a franchise agreement with
the City prior to such use. If the client, lessee, sub-lessee, customer, or other entity
is required to obtain a franchise agreement with the City, then the Franchisee shall
not allow use, control, access, or otherwise provide services to such entity until the
required franchise agreement has been obtained.
Section 3. Notice
A. Written notices to the parties shall be sent by a nationally recognized
overnight courier or by certified mail to the following addresses, unless a different
address is designated in writing and delivered to the other party. Any such notice
shall become effective upon receipt by certified mail, confirmed delivery by
overnight courier, or the date stamped received by the City. Any communication
made by e-mail or similar method will not constitute notice pursuant to this
Franchise, except in case of emergency notification.
Page 84 of 98
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Ordinance No. 6994
Franchise Agreement No. FRN25-0002
July 28, 2025
Page 4 of 17
City: Right-of-Way Specialist
Public Works Department - Transportation
City of Auburn
25 West Main Street
Auburn, WA 98001-4998
Telephone: (253) 931-3010
with a copy to: City Clerk
City of Auburn
25 West Main Street
Auburn, WA 98001-4998
Franchisee: Ezee Fiber Texas, LLC
Attn: Garner Duncan
5959 Corporate Dr. Ste. 2000
Houston, TX 77036
Telephone: 713-255-7500
Email Address: garner.duncan@ezeefiber.com
with a copy to: Ezee Fiber Texas, LLC
Attn: Legal Department
5959 Corporate Dr. Ste. 2000
Houston, TX 77036
Telephone: 713-255-7500
Email Address: legal@ezeefiber.com
B. Any changes to the above-stated Franchisee information shall be
sent to the City’s Right-of-Way Specialist, Public Works Department –
Transportation Division, with copies to the City Clerk, referencing the title of this
Franchise.
C. The above-stated Franchisee voice telephone numbers shall be
staffed at least during normal business hours, Pacific time zone. The City may
contact Franchisee at the following number for emergency or other needs outside
of normal business hours of the Franchisee: 713-255-7500
Section 4. Term of Franchise
A. This Franchise shall run for a period of fifteen (15) years, from the
date of Franchise Acceptance as described in Section 5 of this Franchise.
B. Automatic Extension. If the Franchisee fails to formally apply for a
new franchise agreement prior to the expiration of this Franchise’s term or any
extension thereof, this Franchise automatically continues month to month until a
Page 85 of 98
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Ordinance No. 6994
Franchise Agreement No. FRN25-0002
July 28, 2025
Page 5 of 17
new franchise agreement is applied for and approved under the then current
process or until either party gives written notice at least one hundred and eighty
(180) days in advance of intent to cancel this Franchise.
Section 5. Acceptance of Franchise
A. This Franchise will not become effective until Franchisee files with
the City Clerk (1) the Statement of Acceptance (Exhibit “A”), (2) all verifications of
insurance coverage specified under Section 16, (3) the financial security specified
in Section 17, and (4) payment of any outstanding application fees required in the
City Fee Schedule. These four items will collectively be the “Franchise
Acceptance”. The date that such Franchise Acceptance is filed with the City Clerk
will be the effective date of this Franchise.
B. If the Franchisee fails to file the Franchise Acceptance with the City
Clerk within thirty (30) days after the effective date of the ordinance approving the
Franchise as described in Section 28 of this Franchise, the City’s grant of the
Franchise will be null and void.
Section 6. Construction and Maintenance
A. The Franchisee shall apply for, obtain, and comply with the terms of
all permits required under applicable law for any work done within the City.
Franchisee will comply with all applicable City, State, and Federal codes, rules,
regulations, and orders in undertaking such work.
B. Franchisee agrees to coordinate its activities with the City and all
other utilities located within the public way within which Franchisee is undertaking
its activity.
C. The City expressly reserves the right to prescribe how and where
Franchisee’s Facilities will be installed within the public way and may require the
removal, relocation and/or replacement thereof in the public interest and safety at
the expense of the Franchisee as provided for in Chapter 35.99 RCW.
D. Before beginning any work within the public way, the Franchisee will
comply with the One Number Locator provisions of Chapter 19.122 RCW to identify
existing utility infrastructure.
E. Tree Trimming. Upon prior written approval of the City the
Franchisee 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 Franchisee’s Facilities.
Franchisee shall be responsible for debris removal from such activities. If such
Page 86 of 98
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Ordinance No. 6994
Franchise Agreement No. FRN25-0002
July 28, 2025
Page 6 of 17
debris is not removed within 24 hours, the City may, at its sole discretion, remove
such debris and charge the Franchisee 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 other permits as necessary from the City.
Section 7. Trench Repair for Street Restorations
A. At any time during the term of this Franchise, if a Franchisee Facility
or trench within the Franchise Area causes a street to crack, settle, or otherwise
fail, the City will notify Franchisee of the deficiency and Franchisee agrees to
restore the deficiency and repair the damage within thirty (30) days of written notice
by the City.
B. For purposes of the Section, “street” shall mean all City owned
improvements within a public way, including, but not limited to, the following:
pavement, sidewalks, curbing, above and below-ground utility facilities, and traffic
control devices.
Section 8. Repair and Emergency Work
In the event of an emergency, the Franchisee may commence repair and
emergency response work as required under the circumstances. The Franchisee
will notify the City telephonically during normal business hours (at 253-931-3010)
and during non-business hours (at 253-876-1985) as promptly as possible, before
such repair or emergency work commences, and in writing as soon thereafter as
possible. Such notification shall include the Franchisee’s emergency contact
phone number for corresponding response activity. The City may commence
emergency response work, at any time, without prior written notice to the
Franchisee, but will notify the Franchisee in writing as promptly as possible under
the circumstances. Franchisee will reimburse the City for the City’s actual cost of
performing emergency response work.
Section 9. Damages to City and Third-Party Property
Franchisee agrees that if any of its actions, or the actions of any person,
agent, or contractor acting on behalf of the Franchisee under this Franchise
impairs or damages any City property, survey monument, or property owned by a
third-party, Franchisee will restore, at its own cost and expense, the property to a
safe condition. Upon returning the property to a safe condition, the property shall
then be returned to the condition it was in immediately prior to being damaged (if
the safe condition of the property is not the same as that which existed prior to
damage). All repair work shall be performed and completed to the satisfaction of
the City Engineer.
Page 87 of 98
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Ordinance No. 6994
Franchise Agreement No. FRN25-0002
July 28, 2025
Page 7 of 17
Section 10. Location Preference
A. Any structure, equipment, appurtenance or tangible property of a
utility or other franchisee, other than the Franchisee’s, which was installed,
constructed, completed or in place prior in time to Franchisee’s application for a
permit to construct or repair Franchisee’s Facilities under this Franchise shall have
preference as to positioning and location with respect to the Franchisee’s Facilities.
However, to the extent that the Franchisee’s Facilities are completed and installed
before another utility or other franchisee’s submittal of a permit for new or
additional structures, equipment, appurtenances, or tangible property, then the
Franchisee’s Facilities will have priority. These rules governing preference shall
continue when relocating or changing the grade of any City road or public way. A
relocating utility or franchisee will not cause the relocation of another utility or
franchisee that otherwise would not require relocation. This Section will not apply
to any City facilities or utilities that may in the future require the relocation of
Franchisee’s Facilities. Such relocations will be governed by Section 11 and
Chapter 35.99 RCW.
B. Franchisee will maintain a minimum underground horizontal
separation of five (5) feet from City water, sanitary sewer and storm sewer facilities
and ten (10) feet from above-ground City water facilities; provided, that for
development of new areas, the City, in consultation with Franchisee and other
utility purveyors or authorized users of the public way, will develop guidelines and
procedures for determining specific utility locations.
Section 11. Relocation of Franchisee Facilities
A. Except as otherwise so required by law, Franchisee agrees to
relocate, remove, or reroute its facilities as ordered by the City Engineer at no
expense or liability to the City, except as may be required by Chapter 35.99 RCW.
Pursuant to the provisions of Section 15, Franchisee agrees to protect and save
harmless the City from any customer or third-party claims for service interruption
or other losses in connection with any such change, relocation, abandonment, or
vacation of the public way.
B. If a readjustment or relocation of the Franchisee Facilities is
necessitated by a request from a party other than the City, that party shall pay the
Franchisee the actual costs associated with such relocation.
Section 12. Abandonment and or Removal of Franchisee Facilities
A. Within one hundred and eighty days (180) of Franchisee’s
permanent cessation of use of the Franchisee’s Facilities, the Franchisee will, at
the City’s discretion, either abandon in place or remove the affected facilities.
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Franchise Agreement No. FRN25-0002
July 28, 2025
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B. Franchisee may ask the City in writing to abandon, in whole or in
part, all or any part of the Franchisee’s Facilities. Any plan for abandonment of
Franchisee Facilities must be approved in writing by the City.
C. The parties expressly agree that this Section will survive the
expiration, revocation or termination of this Franchise.
Section 13. Undergrounding
A. The parties agree that this Franchise does not limit the City’s
authority under federal law, state law, or local ordinance, to require the
undergrounding of utilities.
B. Whenever the City requires the undergrounding of aerial utilities in
the Franchise Area, the Franchisee will underground the Franchisee’s Facilities in
the manner specified by the City Engineer at no expense or liability to the City,
except as may be required by Chapter 35.99 RCW. Where other utilities are
present and involved in the undergrounding project, Franchisee will only be
required to pay its fair share of common costs borne by all utilities, in addition to
the costs specifically attributable to the undergrounding of Franchisee’s Facilities.
Common costs will include necessary costs for common trenching and utility
vaults. Fair share will be determined in comparison to the total number and size
of all other utility facilities being undergrounded.
Section 14. Franchisee Information
A. Franchisee agrees to supply, at no cost to the City, any information
reasonably requested by the City to coordinate municipal functions with
Franchisee’s activities and fulfill any municipal obligations under state law. Said
information will include, at a minimum, as-built drawings of Franchisee’s Facilities,
installation inventory, and maps and plans showing the location of existing or
planned facilities within the City. Said information may be requested either in hard
copy or electronic format, compatible with the City’s database system, including
the City’s Geographic Information System (GIS) database. Franchisee will keep
the City informed of its long-range plans for coordination with the City’s long-range
plans.
B. The parties understand that Chapter 42.56 RCW and other
applicable law may require public disclosure of information given to the City.
Section 15. Indemnification and Hold Harmless
A. Franchisee shall defend, indemnify, and hold harmless the City, its
officers, officials, employees and volunteers from and against any and all claims,
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Franchise Agreement No. FRN25-0002
July 28, 2025
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suits, actions, or liabilities for injury or death of any person, or for loss or damage
to property, which arises out of Franchisee’s acts, errors or omissions, or from the
conduct of Franchisee’s business, or from any activity, work or thing done,
permitted, or suffered by Franchisee arising from or in connection with this
Franchise, except only such injury or damage as shall have been occasioned by
the sole negligence of the City.
However, should a court of competent jurisdiction determine that this Franchise is
subject to RCW 4.24.115, then, in the event of liability for damages arising out of
bodily injury to persons or damages to property caused by or resulting from the
concurrent negligence of the Franchisee and the City, its officers, officials,
employees, and volunteers, the Franchisee’s liability hereunder shall be only to the
extent of the Franchisee’s negligence. It is further specifically and expressly
understood that the indemnification provided herein constitutes the Franchisee’s
waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the
purposes of this indemnification. This waiver has been mutually negotiated by the
parties. The provisions of this section shall survive the expiration or termination of
this Franchise.
B. The Franchisee will hold the City harmless from any liability arising
out of or in connection with any damage or loss to the Franchisee’s Facilities
caused by maintenance and/or construction work performed by, or on behalf of,
the City within the Franchise Area or any other City road, public way, or other
property, except to the extent any such damage or loss is directly caused by the
negligence of the City, or its agent performing such work.
C. The Franchisee acknowledges that neither the City nor any other
public agency with responsibility for firefighting, emergency rescue, public safety
or similar duties within the City has the capability to provide trench, close trench or
confined space rescue. The Franchisee, and its agents, assigns, successors, or
contractors, will make such arrangements as Franchisee deems fit for the provision
of such services. The Franchisee will hold the City harmless from any liability
arising out of or in connection with any damage or loss to the Franchisee for the
City’s failure or inability to provide such services, and, pursuant to the terms of
Section 15(A), the Franchisee will indemnify the City against any and all third-party
costs, claims, injuries, damages, losses, suits, or liabilities based on the City’s
failure or inability to provide such services.
Section 16. Insurance
A. The Franchisee shall procure and maintain for the duration of this
Franchise and as long as Franchisee has Facilities in the public way, insurance
against claims for injuries to persons or damage to property which may arise from
or in connection with the Franchise and use of the public way.
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Franchise Agreement No. FRN25-0002
July 28, 2025
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B. No Limitation. The Franchisee’s maintenance of insurance as
required by this Franchise shall not be construed to limit the liability of the
Franchisee to the coverage provided by such insurance, or otherwise limit the
City’s recourse to any remedy available at law or in equity.
C. Minimum Scope of Insurance. The Franchisee shall obtain
insurance of the types and coverage described below:
1. Commercial General Liability insurance shall be at least as
broad as Insurance Services Office (ISO) occurrence form CG 00 01 and
shall cover liability arising from premises, operations, stop gap liability,
independent contractors, products-completed operations, personal injury
and advertising injury, and liability assumed under an insured contract.
There shall be no exclusion for liability arising from explosion, collapse or
underground property damage. The City shall be named as an additional
insured under the Franchisee’s Commercial General Liability insurance
policy with respect this Franchise using ISO endorsement CG 20 12 05 09
if the Franchise is considered a master permit as defined by RCW
35.99.010, or CG 20 26 07 04 if it is not, or substitute endorsement providing
at least as broad coverage.
2. Automobile Liability insurance covering all owned, non-
owned, hired and leased vehicles. Coverage shall be at least as broad as
ISO form CA 00 01.
3. Contractors Pollution Liability insurance shall be in effect
throughout the entire Franchise covering losses caused by pollution
conditions that arise from the operations of the Franchisee. Contractors
Pollution Liability shall cover bodily injury, property damage, cleanup costs
and defense, including costs and expenses incurred in the investigation,
defense, or settlement of claims.
4. Workers’ Compensation coverage as required by the
Industrial Insurance laws of the State of Washington.
5. Excess or Umbrella Liability insurance shall be excess over
and at least as broad in coverage as the Franchisee’s Commercial General
Liability and Automobile Liability insurance. The City shall be named as an
additional insured on the Franchisee’s Excess or Umbrella Liability
insurance policy.
D. Minimum Amounts of Insurance. The Franchisee shall maintain
insurance that meets or exceeds the following limits:
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Ordinance No. 6994
Franchise Agreement No. FRN25-0002
July 28, 2025
Page 11 of 17
1. Commercial General Liability insurance shall be written with
limits no less than $5,000,000 each occurrence, $5,000,000 general
aggregate.
2. Automobile Liability insurance with a minimum combined
single limit for bodily injury and property damage of $5,000,000 per
accident.
3. Contractors Pollution Liability insurance shall be written in an
amount of at least $2,000,000 per loss, with an annual aggregate of at least
$2,000,000.
4. Workers’ Compensation coverage as required by the
Industrial Insurance laws of the State of Washington and employer’s liability
insurance with limits of not less than $1,000,000.
5. Excess or Umbrella Liability insurance shall be written with
limits of not less than $5,000,000 per occurrence and annual aggregate.
The Excess or Umbrella Liability requirement and limits may be satisfied
instead through Franchisee’s Commercial General Liability and Automobile
Liability insurance, or any combination thereof that achieves the overall
required limits.
E. Other Insurance Provisions. Franchisee’s Commercial General
Liability, Automobile Liability, Excess or Umbrella Liability, Contractors Pollution
Liability insurance policy or policies are to contain, or be endorsed to contain, that
they shall be primary insurance as respect to the City. Any insurance, self-
insurance, or self-insured pool coverage maintained by the City shall be excess of
the Franchisee’s insurance and shall not contribute with it.
F. Acceptability of Insurers. Insurance is to be placed with insurers with
a current A.M. Best rating of not less than A: VII.
G. Subcontractors. The Franchisee shall cause each and every
Subcontractor to provide insurance coverage that complies with all applicable
requirements of the Franchisee-provided insurance as set forth herein, including
limits no less than what is required of Franchisee under this Franchise. The
Franchisee shall ensure that the City is an additional insured on each and every
Subcontractor’s Commercial General liability insurance policy using an
endorsement as least as broad as ISO CG 20 26.
H. Verification of Coverage. The Franchisee shall furnish the City with
original certificates and a copy of the amendatory endorsements, including but not
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Ordinance No. 6994
Franchise Agreement No. FRN25-0002
July 28, 2025
Page 12 of 17
necessarily limited to the additional insured endorsement, evidencing the
insurance requirements of this Franchise. Upon request by the City, the
Franchisee shall furnish certified copies of all required insurance policies, including
endorsements, required in this Franchise and evidence of all subcontractors’
coverage.
I. Notice of Cancellation. Franchisee shall provide the City with written
notice of any policy cancellation within two business days of their receipt of such
notice.
J. Failure to Maintain Insurance. Failure on the part of the Franchisee
to maintain the insurance as required shall constitute a material breach of the
Franchise, upon which the City may, after giving five business days’ notice to the
Franchisee to correct the breach, terminate the Franchise.
K. City Full Availability of Franchisee Limits. If the Franchisee maintains
higher insurance limits than the minimums shown above, the City shall be insured
for the full available limits of Commercial General and Excess or Umbrella liability
maintained by the Franchisee, irrespective of whether such limits maintained by
the Franchisee are greater than those required by this Franchise or whether any
certificate of insurance furnished to the City evidences limits of liability lower than
those maintained by the Franchisee.
L. Franchisee – Self-Insurance. Franchisee will have the right to self-
insure any or all of the above-required insurance. Any such self-insurance is
subject to approval by the City. If the Franchisee is self-insured or becomes self-
insured during the term of the Franchise, Franchisee or its affiliated parent entity
shall comply with the following: (i) Franchisee shall submit a letter to the City stating
which of the above required insurance provisions in this Section 15 Franchisee
proposes to self-insure; (ii) provide the City, upon request, a copy of Franchisee’s
or its parent company’s most recent audited financial statements, if such financial
statements are not otherwise publicly available; (iii) Franchisee or its parent
company is responsible for all payments within the self-insured retention; and (iv)
Franchisee assumes all defense and indemnity obligations as outlined in Section
15.
Section 17. Financial Security
The Franchisee will provide the City with a financial security in the amount
of Fifty Thousand Dollars ($50,000.00) running for, or renewable for, the term of
this Franchise, in a form and substance acceptable to the City. If Franchisee fails
to substantially comply with any one or more of the provisions of this Franchise,
the City may recover jointly and severally from the principal and any surety of that
financial security any damages suffered by the City as a result Franchisee’s failure
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July 28, 2025
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to comply, including but not limited to staff time, material and equipment costs,
compensation or indemnification of third parties, and the cost of removal or
abandonment of facilities. Franchisee specifically agrees that its failure to comply
with the terms of Section 20 will constitute damage to the City in the monetary
amount set forth in that section. Any financial security will not be construed to limit
the Franchisee’s liability to the security amount, or otherwise limit the City’s
recourse to any remedy to which the City is otherwise entitled at law or in equity.
Section 18. Successors and Assignees
A. All the provisions, conditions, regulations and requirements
contained in this Franchise are binding upon the successors, assigns of, and
independent contractors of the Franchisee, and all rights and privileges, as well as
all obligations and liabilities of the Franchisee will inure to its successors,
assignees and contractors equally as if they were specifically mentioned herein
wherever the Franchisee is mentioned.
B. This Franchise will not be leased, assigned or otherwise alienated
without the express prior consent of the City by ordinance.
C. Franchisee and any proposed assignee or transferee will provide
and certify the following to the City not less than ninety (90) days prior to the
proposed date of transfer: (1) Complete information setting forth the nature, term
and conditions of the proposed assignment or transfer; (2) All information required
by the City of an applicant for a Franchise with respect to the proposed assignee
or transferee; and, (3) An application fee in the amount established by the City’s
fee schedule, plus any other costs actually and reasonably incurred by the City in
processing, and investigating the proposed assignment or transfer.
D. Before the City’s consideration of a request by Franchisee to consent
to a Franchise assignment or transfer, the proposed Assignee or Transferee will
file with the City a written promise to unconditionally accept all terms of the
Franchise, effective upon such transfer or assignment of the Franchise. The City
is under no obligation to undertake any investigation of the transferor’s state of
compliance and failure of the City to insist on full compliance before transfer does
not waive any right to insist on full compliance thereafter.
Section 19. Dispute Resolution
A. In the event of a dispute between the City and the Franchisee arising
by reason of this Franchise, the dispute will first be referred to the operational
officers or representatives designated by City and Franchisee to have oversight
over the administration of this Franchise. The officers or representatives will meet
within thirty (30) calendar days of either party's request for a meeting, whichever
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July 28, 2025
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request is first, and the parties will make a good faith effort to achieve a resolution
of the dispute.
B. If the parties fail to achieve a resolution of the dispute in this manner,
either party may then pursue any available judicial remedies. This Franchise will
be governed by and construed in accordance with the laws of the State of
Washington. If any suit, arbitration, or other proceeding is instituted to enforce any
term of this Franchise, the parties specifically understand and agree that venue
will be exclusively in King County, Washington. The prevailing party in any such
action will be entitled to its attorneys’ fees and costs.
Section 20. Enforcement and Remedies
A. If the Franchisee willfully violates, or fails to comply with any of the
provisions of this Franchise through willful or unreasonable negligence, or fails to
comply with any notice given to Franchisee under the provisions of this Franchise,
the City may, at its discretion, provide Franchisee with written notice to cure the
breach within thirty (30) days of notification. If the City determines the breach
cannot be cured within thirty days, the City may specify a longer cure period, and
condition the extension of time on Franchisee’s submittal of a plan to cure the
breach within the specified period, commencement of work within the original thirty
day cure period, and diligent prosecution of the work to completion. If the breach
is not cured within the specified time, or the Franchisee does not comply with the
specified conditions, the City may, at its discretion, either (1) revoke the Franchise
with no further notification, or (2) claim damages of Two Hundred Fifty Dollars
($250.00) per day against the financial guarantee set forth in Section 17 for every
day after the expiration of the cure period that the breach is not cured.
B. If the City determines that Franchisee is acting beyond the scope of
permission granted in this Franchise for Franchisee Facilities and Franchisee
Services, the City reserves the right to cancel this Franchise and require the
Franchisee to apply for, obtain, and comply with all applicable City permits,
franchises, or other City permissions for such actions, and if the Franchisee’s
actions are not allowed under applicable federal and state or City laws, to compel
Franchisee to cease those actions.
Section 21. Compliance with Laws and Regulations
A. This Franchise is subject to, and the Franchisee will comply with all
applicable federal and state or City laws, regulations and policies (including all
applicable elements of the City's comprehensive plan), in conformance with federal
laws and regulations, affecting performance under this Franchise. The Franchisee
will be subject to the police power of the City to adopt and enforce general
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July 28, 2025
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ordinances necessary to protect the safety and welfare of the general public in
relation to the rights granted in the Franchise Area.
B. The City reserves the right at any time to amend this Franchise to
conform to any federal or state statute or regulation relating to the public health,
safety, and welfare, or relating to roadway regulation, or a City Ordinance enacted
pursuant to such federal or state statute or regulation enacted, amended, or
adopted after the effective date of this Franchise if it provides Franchisee with thirty
(30) days written notice of its action setting forth the full text of the amendment and
identifying the statute, regulation, or ordinance requiring the amendment. The
amendment will become automatically effective on expiration of the notice period
unless, before expiration of that period, the Franchisee makes a written call for
negotiations over the terms of the amendment. If the parties do not reach
agreement as to the terms of the amendment within thirty (30) days of the call for
negotiations, the City may enact the proposed amendment, by incorporating the
Franchisee’s concerns to the maximum extent the City deems possible.
C. The City may terminate this Franchise upon thirty (30) days written
notice to the Franchisee, if the Franchisee fails to comply with such amendment or
modification.
Section 22. License, Tax and Other Charges
This Franchise will not exempt the Franchisee from any future license, tax,
or charge which the City may adopt under authority granted to it under state or
federal law for revenue or as reimbursement for use and occupancy of the
Franchise Area.
Section 23. Consequential Damages Limitation
Notwithstanding any other provision of this Franchise, in no event will either
party be liable for any special, incidental, indirect, punitive, reliance, consequential
or similar damages.
Section 24. Severability
If any portion of this Franchise is deemed invalid, the remainder portions
will remain in effect.
Section 25. Titles
The section titles used are for reference only and should not be used for the
purpose of interpreting this Franchise.
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Franchise Agreement No. FRN25-0002
July 28, 2025
Page 16 of 17
Section 26. Implementation
The Mayor is authorized to implement those administrative procedures
necessary to carry out the directions of this legislation.
Section 27. Entire Franchise
This Franchise, as subject to the appropriate city, state, and federal laws,
codes, and regulations, and the attachments hereto represent the entire
understanding and agreement between the parties with respect to the subject
matter and it supersedes all prior oral negotiations between the parties. All
previous franchises between the parties pertaining to Franchisee's operation of its
Facilities are hereby superseded.
Section 28. 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.
INTRODUCED: ___________________
PASSED: ________________________
APPROVED: _____________________
________________________________
NANCY BACKUS, MAYOR
ATTEST: APPROVED AS TO FORM:
___________________________ ________________________________
Shawn Campbell, MMC, City Clerk Jason Whalen, City Attorney
PUBLISHED: _____________________________________________________
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Ordinance No. 6994
Franchise Agreement No. FRN25-0002
July 28, 2025
Page 17 of 17
EXHIBIT “A”
STATEMENT OF ACCEPTANCE
Ezee Fiber Texas, LLC, for itself, its successors and assigns, hereby accepts and
agrees to be bound by all lawful terms, conditions and provisions of the Franchise
attached hereto and incorporated herein by this reference.
Franchisee Name: Ezee Fiber Texas, LLC
Address: _____________________________
City, State, Zip: _______________________
By: Date:
Signature
Name: ___________________________
Title: ____________________________
STATE OF _______________)
)ss.
COUNTY OF _____________ )
On this ____ day of _______________, 20__, before me the undersigned, a
Notary Public in and for the State of __________, duly commissioned and sworn,
personally appeared, __________________ of _________, the company that
executed the within and foregoing instrument, and acknowledged the said
instrument to be the free and voluntary act and deed of said company, for the uses
and purposes therein mentioned, and on oath stated that they are authorized to
execute said instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
on the date hereinabove set forth.
Signature
NOTARY PUBLIC in and for the State of
___________, residing at
MY COMMISSION EXPIRES:
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