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HomeMy WebLinkAbout5876RESOLUTION NO. 5876 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE SEWER FRANCHISE AGREEMENT BETWEEN THE CITY OF AUBURN AND KING COUNTY TO ESTABLISH A FRANCHISE COMPENSATION SCHEDULE FOR THE CITY'S USE AND OCCUPATION OF KING COUNTY RIGHT-OF-WAY TO INSTALL, OPERATE AND MAINTAIN CITY SEWER FACILITIES WHEREAS, in September 2002, King County granted the City of Auburn a twenty- five year sewer franchise (King County Franchise No. 14458) to install, operate, and maintain sewer mains, service lines and appurtenances in, over, along, and under county roads; and WHEREAS, in January 2014, through King County Franchise Amendment Ordinance No. 17701 and City of Auburn Resolution No. 5027, the Sewer Franchise Agreement was amended to update the franchise service area to be consistent with the then approved 2010 Comprehensive Sewer Plan; and WHEREAS, pursuant to chapter 6.27 of the King County Code (KCC), King County has the authority to charge annual franchise compensation, retroactive to 2018, to utility franchise agreement holders for the right to use and occupy King County right-of-way; and WHEREAS, King County is exercising its authority to charge Franchise Compensation as defined in KCC 6.27.080, requiring an amendment to the franchise agreement; and WHEREAS, King County and the city agreed on the basis and methods for calculating the yearly Franchise Compensation; and -------------------------------- Resolution No. 5876 November 19, 2025 Page 1 of 2 Rev. 04/24 WHEREAS, it is in the public interest for the city to agree to the amended terms of the sewer franchise agreement. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. That the Mayor is hereby authorized to execute an Agreement between the City and King County to amend the sewer franchise between the parties, which amendment shall be in substantial conformity with the amendment attached hereto as Exhibit A and incorporated herein by this reference. Section 2. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Section 3. This Resolution will take effect and be in full force on passage and signatures. Dated and Signed this 15th day of December, 2025. ATTEST: Shawn Campbell, MMC, City Clerk -------------------------------- Resolution No. 5876 November 19, 2025 Page 2 of 2 CITY OF AUBURN bQa; .1 �- NANCY BA S, MAYOR A .S Jason Whalen, ,City Attorney Rev. 04/24 Docusign Envelope ID: OC6000BF-2C6F-4C6C-gECA-D6FB60A8F432 EXHIBIT A King County Franchise #: 14458 Amended by # 17701 Second Amendment to the Franchise Agreement WHEREAS, King County, a political subdivision of the State of Washington, entered into a Franchise Agreement with City of Auburn, a municipal corporation of the State of Washington, as Franchisee, covering the Franchise Area fully described in the Franchise Agreement No. 14458, the effective date of which was September 16"', 2002; and WHEREAS, Franchise Agreement No. 14458, was subsequently amended to revise the Franchise Area fully described in the Franchise AmendmentNo, 17701, the effective date of which was January 21, 2014. WHEREAS, the Franchise Agreement grants King County the right to impose Franchise Compensation in exchange for Franchisee's use of the King County Right -of -Way (ROW); WHEREAS, pursuant to chapter 6.27 of the King County Code, the County has the authority to charge Franchise Compensation; and WHEREAS, subject to the terms and conditions described below and contained in the Franchise Agreement, King County is exercising its authority to charge Franchise Compensation as defined in KCC 6.27.080 and Public Rule RPM 9-2. NOW THEREFORE: 1. In exchange for the right to use and occupy the County ROW to place its Facilities, Franchisee shall pay the County compensation in the nature of rent as provided in KCC 6.27.080 in the amounts described below. The County shall provide Franchisee an invoice for compensation, which shall be due and payable to King County Finance within thirty (30) days of the date of the invoice, as identified on the invoice. Payment may be made either electronically or via US Mail to King County Facilities Management Div.- RES Finance, 401 5th Ave., Suite 930, Seattle, WA 98104. Franchise compensation shall be adjusted annually based on the U.S. Department of Labor, Bureau of Labor Statistics Consumer December through December Price Index for All Urban Consumers for the Seattle -Tacoma -Bremerton Statistical Metropolitan Area for the preceding year, If franchise compensation is not received by the County by the due date, interest shall be charged from that date until such time that payment is received at the maximum rate permitted under Washington State law, compounded daily. 2. Franchise compensation may be treated as an external cost which may be passed through by Franchisee to customers and itemized on monthly billing statements. Therefore, the Parties agree that any recovery itemized on customer's bills shall be referred to as "King County ROW Franchise" or language substantially similar thereto. City of Aubum Fnutchise Amendment 2 Compensation.doex Page 1 of 5 Docusign Envelope ID: 005000BF-2CGF-4C6C-gECA-D5FB50ABF432 3. The Parties have negotiated and agreed that Franchisee shall pay the County an additional $4,351.00 in Franchise Compensation with the first invoice following the Effective Date, in exchange for use and occupation of the ROW between 2018 through 2024. Table showing compensation .for each year follows: Year Franchise Compensation 2018 $539 2019 $566 2020 $594 2021 $604 2022 $632 2023 $688 2024 $728 2025 $748 4. During each fifth (5th) year throughout the term of this Franchise (including any extension thereof), beginning on the year the first invoice is issued, Franchise compensation will be re-evaluated. The purpose of the re-evaluation is to capture changes in the Franchise Area or changes in the assessed land values of parcels adjacent to the ROW. By January 30`1 of each 5tl' year, Franchisee shall notify the County of any changes to its Franchise Area and shall provide the County whatever information is needed to reflect such changes, including'but not limited to a GIS compatible map and/or a legal description. 5. No acceptance of any payment made pursuant to this Amendment shall be construed as an accord by the County that the amount paid is in fact the correct amount, nor shall any acceptance of payments be construed as a release of any claim the County may have for further or additional sums payable or for the.performance of any other obligation of Franchisee. 6. Franchisee shall provide and maintain fire suppression water facilities, equipment and services throughout its Franchise Area in accordance with KCC 6.27.060. Fire suppression water facilities, equipment and services shall be considered part of Franchisee's Facilities and shall be provided at no cost to the County. However, costs incurred by Franchisee for fire suppression water facilities and services shall be credited against the franchise compensation amount. City or Aubum Franchise Amendment 2 Compensation,doex Page 2 or 5 Docusign Envelope ID: 005000BF-2C6F-4C6C-9ECA-D5FB5OA8F432 IN WITNESS WHEREOF, Grantee and Grantor have caused this Amendment to be executed effective as of the date the last party signs below, (`Effective Date"), Grantee: CITY OF AUBURN By; Name: Title: Date APPROVED AS TO FORM ONLY: By: Feymany; ew Fund FinTe'f i ell, King County Senior Deputy Prosecuting Attorney Date: 10/29/2026 Grantor KING COUNTY a home rule charter county and political subdivisi n of the State of Washington isa Pearson, Director Facilities Management Division Date: M - 0' % City of Aubum Franchise Amcndntent 2 Compensution.doex Page 3 of 5 Docuslgn Envelope ID: 005000BF-2CBF-4CGC-9ECA-D5FB6OA8F432 GRANTOR ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfi►Iness, accuracy, or validity of that docusiient. State of Washington) County of Kin ) l certify that Lisa Peat -son signed this instrument, on oath stated that she was authorized by the King County Executive to execute the instrument and acknowledged her as the Diiector of the Facilities Management Division of the Department of Executive Services of King County, Washington, to be the free and voluntary act of said County for the uses and purposes mentioned in the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Washington that the foregoing paragraph is true and correct. GIVEN UNDER MY HAND AND OFFICIAL SEAL this "'41 day of L6Lt,' � 2025. NOTARY PUBLIC teven ease -Si'cv / " " S Notary Pubiie (printed name) State of Washington My Appointment Expires t il2312026 Commission Number 22001325 inand for the State of Washington residing at .St�� My appointment expires V:y 0,0,-kS' Chy of Auburn franchise Amendment 2 Compensalion.doex Page 4 of 5 Docusign Envetope)D: 005000BF-2C6F-4C6C-OECA-D5FB50AOF432 GRANTIC)C ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document, State of Washin tg_on,) County of K_ ing) On btCl nbCV 15 2025, before me, �\Ghr(0\ SCVADII , notary public, personally appeared W M\Cq ?)aCk.\A S , who proved to me on the basis of satisfactory evidence to be the person whose came is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon belialf of which the person acted, executed the instrument, I certify under PENALTY OF PERJURY under the laws of the State of Washington that the foregoing paragraph is true and correct. GIVEN UNDER MY HAND AND OFFICIAL SEAL this GJ day of-OeCeM Y, 2025. NOTARY PLVIC NoPu - &myl n SUVA0`� State of Wm►s6iugtou HANNAH SCHOLL LICENSE # 202199 MY COMMISSION EXPIRES SEPTEMBER 19.2026 '- (printed name) in and for the State of Washington residing at EU -W—Vn- _. My appointment expires\_ -R City of Aubum Franchise Amendment 2 Componsntion.doex . Page 5 of 5