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HomeMy WebLinkAboutOrdinance No. 0863CITY OF MEDINA Ordinance No. 863 AN ORDINANCE OF THE CITY OF MEDINA, WASHINGTON, GRANTING A NONEXCLUSIVE TELECOMMUNICATIONS FRANCHISE TO CONSTRUCT AND OPERATE A DISTRIBUTED ANTENNA SYSTEM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, the Right -of -Way within the City of Medina ("City") belong to the public and are built and maintained at public expense for the use of the general public, the primary purpose of which is public travel, and must be managed and controlled consistent with that intent; and WHEREAS, ATC Outdoor DAS, LLC ("ATC") has made application to the City of Medina for a telecommunications franchise to construct, install, maintain, repair and operate a Distributed Antenna System to provide telecommunications services using the Right -of -Way; and WHEREAS, ATC represents that it desires to install and operate telecommunications facilities, within the meaning of Medina Municipal Code Section 19.02.020 (Exhibit B), within Medina; and WHEREAS, based on representations and information provided by ATC, and in response to its request for the grant of a franchise, the City Council has determined that the grant of a nonexclusive franchise, on the terms and conditions herein and subject to applicable law, are consistent with the public interest; and WHEREAS, the City is authorized by applicable law to grant such a nonexclusive franchises within the boundaries of the City; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Grant of Franchise. The City of Medina hereby grants to ATC Outdoor DAS, LLC a nonexclusive telecommunications franchise to construct and operate a distributed antenna system, which Franchise Agreement shall read as follows: 1. TABLE OF CONTENTS. ARTICLE 1. DEFIlVITIONS ARTICLE 2. FRANCHISE GRANT 2.1 Right -of -Way Use Authorized 2.2 Authorized Services 2.3 No rights shall pass to Franchisee by implication 2.4 Interest in the Right -of -Way 2.5 Condition of Franchise Area 2.6 Franchise Nonexclusive 2.7 Transfer 2.8 Street Vacation 2.9 Reservation of City Use of Right -of - ARTICLE 3. COMPLIANCE WITH LAWS/ORDER OF PRECEDENCE 3.1 Compliance with Laws 3.2 Police Powers 3.3 Alteration of Material Terms and Conditions 3.4 Reservation of Rights/Wavier 3.5 Subsequent Action 3.6 Change in Form of Government 3.7 Relationship to MMC ARTICLE 4. ACCEPTANCE _ 4.1 Acceptance 4.2 Failure to Timely File Acceptance 4.3 Effective Date: Term 4.4 Effect of Acceptance 4.5 Effect of Expiration/Tennination ' 4.6 Renewal ARTICLE 5. PROTECTION OF THE CITY AND PUBLIC 5.1 Indemnification 5.2 Environmental Indemnity - Attached Exhibit E 5.3 Insurance Requirements - Attached Exhibit F 5.4 Financial Security - Attached Exhibit G 5.5 Parental Guarantee - Attached Exhibit H 5.6 Contractors/Subcontractors - Attached Exhibit I 5.7 Liens 5.8 Financial Conditions 2. ARTICLE 6. ENFORCEMENT AND REMEDIES. 6.1 Communication and Discussion 6.2 Breach/Ri t to Cure 6.3 Remedies 6.4 Revocation 6.5 Assessment of Liquidated Damages 6.6 Receivership ARTICLE 7. GENERAL CONDITIONS UPON USE OF RIGHT-OF-WAY 7.1 Conditions Precedent to Work 7.2 Compliance with Standards/Codes 7.3 Undergrounding Requirements 7.4 Work in the Right -of -Way 7.5 Alterations 7.6 General Conditions 7.7 Telecommunications Facility Relocation at Request of the City for Public Improvements 7.8 Movement of Telecommunications Facilities for Others 7.9 Movement of Telecommunications Facilities During Emergencies 7.10 Record of Installations 7.11 Restoration of Right -of -Way Public and Private Property 7.12 Approvals 7.13 Abandonment of Telecommunications Facilities 7.14 Relationship to MMC ARTICLE 8. MISCELLANEOUS 8.1 Headings 8.2 Entire Agreement 8.3 Incorporation of Exhibits 8.4 Calculation of Time 8.5 Time Limits Strictly Construed 8.6 No Joint Venture 8.7 Approval Authority 8.8 Binding Effect upon Successors and Assi is 8.9 Waiver 8.10 Severability 8.11 Sin 8.12 Discriminatory Practices Prohibited 8.13 Notice 8.14 Survival of Terms 8.15 Force Majeure 8.16 Attorne ' Fees 8.17 Venue/Choice of Law 3. 8.18 Publication A. Map Depicting Franchise Area B. Medina Municipal Code Title 19 C. Form of Transfer Agreement C-1. Acceptance of Franchise and Performance Guarantee D. Acceptance of Franchise E. Environmental Indemnity F. Insurance Requirements G. Financial Security H. Form of Parental Guarantee I. Contractor/Subcontractor Insurance Requirements ARTICLE 1. DEFINITIONS For the purposes of this Franchise and the Exhibits attached hereto, the following terms, phrases, words and their derivations where capitalized shall have the meanings given herein. Words not defined herein shall have the meaning given in Medina Municipal Code "MMC") Title 19 (as set forth in Exhibit B hereto). Words not defined herein or in MMC Title 19 (Exhibit B), shall have the meaning given in MMC Chapter 17.90. Words not defined herein or in MMC Title 19 (Exhibit B) or MMC Chapter 17.90 shall have the same meaning given pursuant to such federal or state statutes, rules, or regulations that apply to and regulate the services provided by Franchisee. Words not otherwise defined shall be given their common and ordinary meaning. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural. The word "shall" is always mandatory and not merely directory. References to governmental entities (whether persons or entities) refer to those entities or their successors in authority. If specific provisions of law, regulation or rule referred to herein be renumbered, then the reference shall be read to refer to the renumbered provision. "Breach" shall mean any failure of a Party to keep, observe, or perform any of its duties or obligations under this Franchise. "City" shall mean the City of Medina. "Construct", "Constructing" or "Construction" shall mean to construct, reconstruct, install, reinstall, align, realign, locate, relocate, adjust, affix, attach, remove, or support. "Direct Costs" shall mean and include all costs and expenses incurred by the City directly related to a particular activity or activities set forth in this Franchise, including by way of example: 4. i. All costs and expenses of materials, equipment, supplies, utilities, consumables, goods and other items used or incorporated in connection with and in furtherance of the activity or activities set forth in this Franchise and any taxes, insurance, and interest expenses related thereto, including costs for crews and equipment; ii. All costs and expenses of labor inclusive of payroll benefits, non- productive time and overhead for each of the labor classifications of the employees performing work for the activity or activities set forth in this Franchise and determined in accordance with the City's ordinary governmental accounting procedures; and iii. All costs and expenses to the City for any Work performed by consultants or contractors to the extent performed for a particular activity or activities set forth in this Franchise, including by way of example and not limitation, engineering and legal services. "Dispute" shall mean a question or controversy that arises between the Parties concerning the observance, performance, interpretation or implementation of any of the terms, provisions, or conditions contained in this Franchise or the rights or obligations of either Party under this Franchise. "DAS" or "Distributed Antenna System" means a network comprised of small, spatially separated, low -power antennas referred to as "nodes", connected to a "central hub" by "fiber optic cable" or other transport medium. "Effective Date" shall mean and refer to that term as it is defined at Section 4.3 herein. "Emergency" shall, in addition to the meaning given pursuant to MMC Section 19.02.020 in Exhibit B, mean and refer to a sudden condition or set of circumstances that significantly disrupts or interrupts the operation of Telecommunications Facilities in the Right -of -Way and Franchisee's ability to continue to provide services if immediate action is not taken. "Environmental Law(s)" means any federal, state or local statute, regulation, code, rule, ordinance, order, judgment, decree, injunction or common law pertaining in any way to the protection of human health or the environment, including without limitation, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, the Compensation and Liability Act, the Toxic Substances Control Act, and any similar or comparable state or local law. "Franchisee" shall mean ATC Outdoor DAS, LLC, and any of its Affiliates. "Franchise Ordinance" shall mean this Ordinance setting forth the terms and conditions upon which Franchisee shall be granted a Franchise. "Franchise Area" shall mean the area identified in Exhibit A. If, as a consequence of the Special Use Permit process for Franchisee's Facilities, Franchisee is 5. not permitted to locate its Facilities exactly as shown on Exhibit A, the Parties agree automatically, with no further action required by either Parry, to substitute as part of this Franchise a revised Exhibit A identifying as the Franchise Area the locations for which Franchisee successfully obtains Special Use Permit approval to construct its Facilities. "Hazardous Substance" means any hazardous, toxic, radioactive or infectious substance, material or waste as defined, listed or regulated under any Environmental Law, and any element, compound, mixture, solution, particle, or substance which presents danger or potential danger for damage or injury to health, welfare, or to the environment, including, but not limited to: those substances which are inherently or potentially radioactive, explosive, ignitable, corrosive, reactive, carcinogenic, or toxic; those substances which have been recognized as dangerous or potentially dangerous to health, welfare, or to the environment by any federal, municipal, state, City, or other governmental or quasi -governmental authority, and/or any department or agency thereof; those substances which use, or have a component thereof or therein which uses, asbestos or lead -based paint; and petroleum oil and any of its fractions. "Law(s)" shall mean all present and future applicable laws, ordinances, rules, regulations, resolutions, permits, environmental standards, orders, decrees and requirements of all federal, state, City and municipal governments, the departments, bureaus or commissions thereof, government authorities, boards or officers, any national or local board of fire underwriters, or any other governmental body or bodies exercising similar functions having or acquiring jurisdiction over all or any part of the Telecommunications Facilities, including the City acting in its governmental capacity. References to Laws shall be interpreted broadly to cover government actions, however nominated. "Legal action" shall mean filing a lawsuit or invoking the right to arbitration. "Noticed Party" shall mean the Party in receipt of notice that it is in Breach. "Party(ies)" shall mean either the City or Franchisee or both. "Public Works Director" means and refers to the Public Works Director for the City or his or her designee, or such officer or person who has been assigned the duties of Public Works Director or his or her designee. "Regulatory Permit" means a construction permit issued pursuant to MMC Chapter 19.12 that provides specific requirements and conditions for Work to Construct Telecommunications Facilities within the Right -of -Way, and any other permit required pursuant to the Medina Municipal Code to perform the proposed work within the Right - of -Way including a special use permit, building permit, street cut permit, or clearing and grading permit. "Remedy", "Remediate" and "Remedial Action" shall have the same meaning as these are given under the Model Toxics Control Act (Chapter 70.105D RCW) and its implementing regulations at Chapter 173-340 WAC. NJ "Right -of -Way" shall have that meaning given pursuant to MMC Chapter 19.02 in Exhibit B; provided that, it shall not include railroad rights -of -way, airports, harbor areas, buildings, parks, and other such similar facilities or property owned, maintained or leased by the City in its governmental or proprietary capacity or as an operator of a utility. "Standards" shall mean those standards and codes set forth in Section 7.2 of this Franchise. "Telecommunications" is the transmission of information by wire, radio, optical cable, electromagnetic, or other similar means. As used in this definition, "information" means knowledge or intelligence represented by any form of writing, signs, signals, pictures, sounds, or any other symbols. "Telecommunications Facilities" shall have the same meaning given pursuant MMC Chapter 19.02 in Exhibit B, and by way of further clarification, shall mean and include any part or all of the facilities, equipment and appurtenances of Franchisee, whether underground or overhead, located within the Right -of -Way as part of Franchisee's Distributed Antenna System, including by way of example and not limitation, radios, amplifiers, optical converters, multiplexers, antennas, nodes, innerducts, pedestals, boxes, cabinets, coax cable trays, primary and auxiliary power supplies, power meters, support structures, foundations, mounting hardware, cases, pipes, lines, fiber, equipment, equipment cabinets and shelters, vaults, conductors, poles, carriers, drains, vents, guy wires, encasements, sleeves, valves, wires, supports, towers, anchors, transmitters, receivers, and signage. "Transfer" shall mean any transaction in which all or a portion of the Telecommunications Facilities are sold, leased or assigned (except a sale or transfer that results in removal of a particular portion of the Telecommunications Facilities from the Right -of -Way), or any transaction in which all or a portion of the the rights, and/or obligations held by Franchisee under the Franchise are transferred, sold, assigned, or leased, in whole or in part, directly or indirectly, to another Person. A transfer of control of an operator shall not constitute a transfer as long as the same person continues to hold the Franchise both before and after the transfer of control. Notwithstanding the foregoing, an agreement with a third party Telecommunications service provider to utilize the Telecommunications Facilities shall not constitute a Transfer under this Franchise. "Work" shall mean any and all activities of Franchisee, or its officers, directors, employees, agents, contractors, subcontractors, volunteers, invitees, or licensees, within the Right -of -Way to Construct the Telecommunications Facilities. ARTICLE 2. FRANCHISE GRANT 2.1 Right -of --Way Use Authorized. Subject to the terms and conditions of this Franchise, the City hereby grants to Franchisee a nonexclusive Franchise authorizing 7. Franchisee to Construct and operate Telecommunications Facilities in, along, among, upon, across, above, over, and under the Right -of -Ways located within the Franchise Area. Further, this Franchise incorporates by reference the provisions of MMC Title 19 as in effect on the Effective Date of this Franchise, a copy of which is attached hereto as Exhibit B; provided that, in the case of conflict between this Franchise and any term or provision in Exhibit B or any future term or provision of the Medina Municipal Code, the conflict shall be resolved as provided in Exhibit B (see e.g., MMC Sections 19.06.040and 19.10.360). Notwithstanding the foregoing, the Parties acknowledge that the City may hereafter modify MMC Title 19 and those modification may apply to this Franchise as provided in Section 3.3. 2.2 Authorized Services. The grant given herein expressly authorizes Franchisee to Construct, install, maintain, repair and operate a Distributed Antenna System to provide Telecommunications services. This authorization is limited and is not intended nor shall it be construed as granting Franchisee or any other Person the right, duty or privilege to use its Telecommunications Facilities or the Right -of -Way to provide services not specifically authorized therein. This Franchise shall not be interpreted to prevent the City from lawfully imposing additional conditions, including additional compensation conditions for use of the Right -of -Way, should Franchisee provide service other than Telecommunications service. Specifically, this grant does not include the authorization to provide Cable Service. However, this Franchise shall not be read as a concession by Franchisee that it needs authorization to provide any services not otherwise authorized herein. 2.3 No Rights Shall Pass to Franchisee by Irn ham. No rights shall pass to Franchisee by implication. Without limiting the foregoing and by way of example, this Franchise shall not include or be a substitute for: 2.3.1 Any other authorization required for the privilege of transacting and carrying on a business within the City that may be lawfully required by the Laws of the City, 2.3.2 Any agreement or authorization required by the City for Right -of - Way users in connection with operations on or in Right -of -Way or public property including, by way of example and not limitation, a utility permit; or 2.3.3 Any licenses, leases, easements or other agreements for occupying any other property or infrastructure of the City or other Persons to which access is not specifically granted by this Franchise including, without limitation, agreements for placing devices on poles, light standards, in conduits, in vaults, in or on pipelines, or in or on other structures or public buildings. 2.3.4 Any permits or other authorizations that may be required under the land use code and development regulations of the City for the construction of Telecommunications Facilities within a particular zoning district in the City, including by way of example and not limitation, a conditional use permit or a variance. �� 2.4 Interest in the Ri t-of-Way. This Franchise shall not operate or be construed to convey title, equitable or legal, in the Right -of -Way to Franchisee. No reference herein to a Right -of -Way shall be deemed to be a representation or guarantee by the City that its interest, or other right to control the use of such Right -of -Way, is sufficient to grant its use for such purposes. This Franchise shall be deemed to grant no more than those rights which the City may have the undisputed right and power to give. The grant given herein does not confer rights other than as expressly provided in the grant hereof and is subject to the limitations in applicable Law. Such right may not be subdivided or subleased to a person other than Franchisee. Franchisee acknowledges that, where City has an ownership interest in a Franchise Area, that ownership interest may be a determinable fee, a public Right -of - Way dedication, or a Right -of -Way easement, which may terminate when City either: (i) ceases to use that Right -of -Way for Right -of -Way purposes; or (ii) uses such Right -of - Way for purposes found to be inconsistent with use of the Right -of -Way for Right -of - Way purposes, and that in such circumstances, City's right to franchise or grant the use of any such Right -of -Way, or rights under any franchise of any such Right -of -Way, may be subject to termination as of the date the circumstances set forth in either (i) or (ii) above (unless Franchisee improves the quality of title to the applicable Franchise Area, or acquiring additional property interests from other Persons). Franchisee also acknowledges that, where City has ownership rights, those ownership rights may terminate for other reasons, such as a street vacation. Franchisee further acknowledges that Franchisee's rights under this Franchise as to any Franchise Area are subject and subordinate to all outstanding rights and encumbrances on City's Right -of -Way, and any easements, other Franchise Agreements, licenses, permits or agreements in effect on or before the Effective Date. City therefore grants to Franchisee no more right, title and interest in any Right -of -Way than the City holds in such Right -of - Way at the time of grant, and Franchisee hereby releases City from any and all liability, cost, loss, damage or expense in connection with any claims that City lacked sufficient legal title or other authority to convey the rights described herein. In case of eviction of Franchisee or Franchisee's contractors by anyone owning or claiming title to, or any interest in the Franchise Area, City shall not be liable to Franchisee or Franchisee's Contractors for any costs, losses or damages of any Party. CITY DOES NOT WARRANT ITS TITLE OR PROPERTY INTEREST IN OR TO ANY FRANCHISE AREA NOR UNDERTAKE TO DEFEND FRANCHISEE IN THE PEACEABLE POSSESSION OR USE THEREOF. NO COVENANT OF QUIET ENJOYMENT IS MADE. 2.5 Condition of Franchise Area. Franchisee has inspected or will inspect Franchise Area, and enters upon each such Franchise Area with knowledge of its physical condition and the danger inherent in operations conducted in, on or near any Franchise Area. FRANCHISEE ACCEPTS THE FRANCHISE AREA IN AN "AS -IS WITH ALL FAULTS" BASIS, WITH ANY AND ALL PATENT AND LATENT DEFECTS, AND 0 IS NOT RELYING ON ANY REPRESENTATION OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY KIND WHATSOEVER FROM THE CITY AS TO ANY MATTERS CONCERNING THE FRANCHISE AREA, including, but not limited to the physical condition of the Franchise Area; zoning status; presence and location of existing utilities; operating history; compliance by the Franchise Area with Environmental Laws or other Laws and other requirements applicable to the Franchise Area; the presence of any Hazardous Substances or wetlands, asbestos, or other environmental conditions in, on, under, or in proximity to the Franchise Area; the condition or existence of any of the above ground or underground structures or improvements, including tanks and transformers in, on or under the Franchise Area; the condition of title to the Franchise Area, and the leases, easements, Franchises, orders, licensees, or other agreements, affecting the Franchise Area (collectively, the "Condition of the Franchise Area"). Franchisee represents and warrants to the City that neither Franchisee nor its contractors or subcontractors have relied and will not rely on, and the City is not liable for or bound by, any warranties, guaranties, statements, representations or information pertaining to the Condition of the Franchise Area or relating thereto made or furnished by the City, or any agent representing or purporting to represent the City, to whomever made or given, directly or indirectly, orally or in writing. CITY HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY, WHETHER EXPRESS OR IMPLIED, AS TO THE DESIGN OR CONDITION OF THE FRANCHISE AREA, ITS MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, THE QUALITY OF THE MATERIAL OR WORKMANSHIP OF THE RIGHT-OF-WAY, OR THE CONFORMITY OF ANY PART OF THE RIGHT-OF-WAY TO ITS INTENDED USES. CITY SHALL NOT BE RESPONSIBLE TO FRANCHISEE OR ANY OF FRANCHISEE'S CONTRACTORS FOR ANY DAMAGES RELATING TO THE DESIGN, CONDITION, QUALITY, SAFETY, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY PART OF THE RIGHT-OF- WAY PRESENT ON OR CONSTITUTING ANY FRANCHISE AREA, OR THE CONFORMITY OF ANY SUCH PROPERTY TO ITS INTENDED USES. 2.6 Franchise Nonexclusive. This Franchise shall be nonexclusive, and subject to all prior rights, interests, easements, permits, franchises or licenses granted by the City to any other Person prior to the Effective Date of this Franchise to use the Right -of -Way for the purposes set forth in such authorizations, and subject to the right of the City to use the same for any purpose it deems fit, including similar purposes allowed Franchisee hereunder. Further, except as otherwise provided herein for public entities, the City may at any time grant authorization to use the Right -of -Way for any purpose that does not unreasonably interfere with Franchisee's authority under this Franchise. 2.7 Transfer. In addition to the requirements set forth in MMC Section 19.10.300 in Exhibit B, no Transfer may be approved by the City unless Franchisee has delivered to the City the transferee's written commitment, in substantially the form of the agreements attached hereto as Exhibits C and C-1, that transferee(s) shall thereafter be responsible for all obligations of Franchisee with respect to the Franchise and guaranteeing performance under the terms 'and conditions of the Franchise and that transferee(s) will be bound by all of the conditions of the Franchise and will assume all of 10. the obligations of its predecessor. Such a written commitment and approval of the Transfer shall relieve Franchisee of any further obligations under the Franchise, including any obligations not fulfilled by Franchisee's transferee; provided that, the Transfer shall not in any respect relieve Franchisee, or any of its successors in interest, of responsibility for acts or omissions, known or unknown, or the consequences thereof, which acts or omissions occur prior to the time of the Transfer. It is further provided that, this Franchise may not be Transferred without the transferee filing or establishing with the City the insurance certificates, security fund and performance bond required pursuant to this Franchise. Notwithstanding the foregoing, notice to the City shall not be required for a mortgage, hypothecation or an assignment of Franchisee's interest in the Franchise in order to secure indebtedness. Notwithstanding any provisions in MMC Section 19.10.300 in Exhibit B to the contrary, Franchisee may, without the prior written notice to and consent of the City: (i) lease the Telecommunications Facilities, or any portion thereof, to another Person; (ii) grant an Indefeasible Right of User Interest in the Telecommunications Facilities, or any portion thereof, to another Person; or (iii) offer or provide capacity or bandwidth in its Telecommunications Facilities to another Person; provided that, Franchisee at all times retains exclusive control over it Telecommunications Facilities and remains responsible for Constructing its Telecommunications Facilities pursuant to the terms and conditions of this Franchise; and provided further that: Franchisee may grant no rights to any such Person that are greater than any rights Franchisee has pursuant to this Franchise; such Persons shall not be construed to be a third -Party beneficiary hereunder; and, no such Person may use the Telecommunications Facilities for any purpose not authorized herein. 2.8 Street Vacation. If any Right -of -Way or portion thereof used by Franchisee is to be vacated during the term of this Franchise, unless as a condition of such vacation Franchisee is granted the right to continue its Telecommunications Facilities in the vacated Right -of -Way, Franchisee shall, without delay or expense to City, remove its Telecommunications Facilities from such Right -of -Way, and restore, repair or reconstruct the Right -of -Way where such removal has occurred, and place the Right -of -Way in the same or better condition than existed prior to Franchisee's Construction of its Telecommunications Facilities. 2.9 Reservation of City Use of Ri t-of-Way. Nothing in this Franchise shall prevent the City from: Constructing sanitary or storm sewers; grading, changing grade, paving, repairing or altering any Right -of -Way; laying down, repairing or removing water mains; or installing conduit or fiber optic cable. ARTICLE 3. COMPLIANCE WITH LAWS 3.1 Compliance with Laws. Except as otherwise provided herein, Franchisee agrees to comply with all applicable Laws as now or hereafter in effect; provided that, nothing herein shall operate as a waiver of Franchisee's right to contest the validity of such laws or the application of such Laws to Franchisee. 11. 3.2 Police Powers. Franchisee acknowledges that its rights hereunder are subject to those powers expressly reserved by the City and further are subject to the police powers of the City to adopt and enforce ordinances necessary to protect the health, safety and welfare of the public. Such powers include but are not limited to: the right to adopt and enforce applicable zoning, building, permitting and safety ordinances and regulations; the right to adopt and enforce ordinances and regulations relating to equal employment opportunities; and the right to adopt and enforce ordinances and regulations governing Work performed in the Right -of -Way. However, this Section 3.2 shall not be read or interpreted as a waiver of Franchisee's right to contest the validity of such ordinances or the application of such ordinances to Franchisee. The Parties acknowledge and agree that any Regulatory Permits for the Construction of Facilities shall be subject to the laws in effect at the time Franchisee submits a complete application for such permit. Following completion of the Construction authorized by such permit(s), the Parties agree that, if the Laws are thereafter modified such that an existing Facility becomes non -conforming, such Facilities shall be considered under the non -conforming use and structures provisions of the Medina Municipal Code (MMC Chapter 17.60). The Parties further acknowledge and agree that, any time Franchisee is doing work in the Right -of -Way, Franchisee shall comply with the applicable Medina right-of-way construction standards in effect at the time Franchisee is undertaking such work in the Medina Right -of -Way. Such standards are, upon the effective date of this Franchise, set forth in Title 12 of the Medina Municipal Code. 3.3 Alteration of Material Terms and Conditions. Subject to federal and State preemption, the material rights, benefits, obligations or duties as specified in this Franchise may not be unilaterally altered by the City through subsequent amendments to any ordinance, regulation, resolution or other enactment of the City, except within the lawful exercise of the City's police power. In the event of a unilateral alteration to this Franchise by the City pursuant to this Section, either Party may initiate renegotiation of the Franchise pursuant to Section 3.5. 3.4 Reservation of Rights/Waiver. The City shall be vested with the power and right to administer and enforce the requirements of this Franchise and the regulations and requirements of applicable Law, or to delegate that power and right, or any part thereof, to the extent permitted under Law, to any agent in the sole discretion of the City. The City expressly reserves all of its rights, authority and control arising from any relevant provisions of federal, State or local Laws granting the City rights, authority or control over the Right - of -Way or the activities of Franchisee. Except as provided herein, nothing in this Franchise shall be deemed to waive the requirements of the various codes and ordinances of the City regarding Franchises, fees to be paid or manner of Construction. Nothing in this Franchise shall be deemed to waive, and Franchisee specifically reserves the right to challenge, any City ordinance, regulation or resolution that conflicts with its rights under this Franchise. 12. 3.5 Subsequent Action. In the event that after this Franchise becomes effective, (a) there is a change in or clarification of the Law which changes, broadens or clarifies the authority or obligations of the City or Franchisee with respect to any act permitted or authorized under this Franchise, or (b) the State of Washington or any agency thereof or any agency of the Federal government requires Franchisee or the City to act in a manner which is inconsistent with any provisions of this Franchise, or (c) any term, article, section, subsection, paragraph, provision, condition, clause, sentence, or other portion of this Franchise, or its application to any person or circumstance, shall be held to be illegal, invalid or unconstitutional for any reason by any court or agency of competent jurisdiction, or (d) because of a change in circumstances, the City or Franchisee believe that amendments to this Franchise are necessary or appropriate, then the City and Franchisee agree to enter into good faith negotiations to amend this Franchise so as to enable the City and Franchisee to address, in a manner reasonably acceptable to the City and Franchisee, such change or other development which formed the basis for the negotiations. The City and Franchisee recognize that the purpose of the negotiations would be to preserve, to the maximum extent consistent with Law, the intent, scope and purpose of this Franchise. If the terms of this Franchise are materially altered due to changes in or clarifications of governing Law or due to agency rule making or other action, then the Parties shall negotiate in good faith to reconstitute this Franchise in a way consistent with then -applicable Law in a form that, to the maximum extent possible, is consistent with the original scope, intent and purpose of the City and Franchisee and preserves the benefits bargained for by each Party. 3.6 Change in Form of Government. Any change in the form of government of the City shall not affect the validity of this Franchise. Any governmental unit succeeding the City shall, without the consent of Franchisee, succeed to all of the rights and obligations of the City provided in this Franchise. 3.7 Relationship to MMC. 19.10.030 and 19.10.040. ARTICLE 4. ACCEPTANCE This Article 3 supersedes MMC Sections 4.1 Acceptance. Within thirty (30) days after the passage and approval of this Franchise by the City Council, this Franchise shall be accepted by Franchisee by filing with the City Clerk during regular business hours, or such other person as may be designated by the City, three originals of this Franchise with its original signed and notarized written acceptance of all of the terms, provisions and conditions of this Franchise in conformance with Exhibit C, together with all of the following, if required herein: 4.1.1 Payment in readily available funds of the administrative costs for issuance of the Franchise in conformance with the requirements of Section 5.7 herein; 13. 4.1.2 Submission of proof of financial security in accordance with Section 5.4 herein; 4.1.3 Payment of the costs of publication of this Franchise Ordinance in conformance with the requirements of Sections 5.7 and 8.18 herein; and 4.1.4 Parental Guarantee, if required, in conformance with the requirements of Section 5.5 herein. In the event that the thirtieth day falls on a Saturday, Sunday or legal holiday during which the City is closed for business, the filing date shall fall on the last business day before such Saturday, Sunday or legal holiday. 4.2 Failure to Timely File Acceptance. Except as provided in this Section 4.2 below, the failure of Franchisee to timely file its written acceptance shall be deemed a rejection by Franchisee of this Franchise, and this Franchise shall then be void. In the event that Franchisee timely files its written acceptance but fails to timely comply with the applicable requirements of sections 4.1.1 through 4.1.4, this Franchise shall be voidable in the sole discretion of the City Manager without further action required by the City Council or the consent of Franchisee. The Franchise shall be voidable until such time as Franchisee complies with all of the applicable requirements of sections 4.1.1 through 4.1.4. No opportunity to cure or public hearing is required to void the Franchise pursuant to this Section 4.2 by giving written notice of the same to Franchisee. 4.3 Effective Date; Term. 4.3.1 Effective Date. Except as provided pursuant to Section 4.2 of this Franchise, the Effective Date of this Ordinance and franchise shall be 12:01 a.m. on the 3 1 " day following passage and approval of this Franchise by the City Council. This Franchise and the rights, privileges, and authority granted hereunder and the contractual relationship established hereby shall take effect and be in force from and after the Effective Date of this Ordinance for the term hereof. 4.3.2 Term. The term of this Franchise shall commence on the Effective Date and shall continue in full force and effect for a period of ten years, unless sooner terminated, revoked or rendered void. This Section supersedes MMC Section 19.06.060. 4.4 Effect of Acceptance. By accepting the Franchise, Franchisee: 4.4.1 Accepts and agrees to comply with and abide by all of the lawful terms and conditions of this Franchise; Franchise; 4.4.2 Acknowledges and accepts the City's legal right to grant this 14. 4.4.3 Agrees that the Franchise was granted pursuant to processes and procedures consistent with applicable Law and that it will not raise any claim to the contrary, 4.4.4 Agrees that it enters into this Franchise freely and voluntarily, without any duress or coercion, after free and full negotiations, after carefully reviewing all of the provisions, conditions and terms of this Franchise Agreement, and after consulting with counsel; 4.4.5 Acknowledges and agrees that: it has carefully read the terms and conditions of this Franchise; it unconditionally accepts all of the terms and conditions of this Franchise; it unconditionally agrees to abide by the same; it has relied upon its own investigation of all relevant facts; it has had the assistance of counsel; it was not induced to accept a Franchise; and that this Franchise represents the entire agreement between Franchisee and the City; 4.4.6 Warrants that Franchisee has full right and authority to enter into and accept this Franchisee in accordance with the terms hereof, and by entering into or performing this Franchise, Franchisee is not in violation of its charter or by-laws, or any law, regulation, or agreement by which it is bound or to which it is subject; and 4.4.7 Warrants that acceptance of this Franchise by Franchisee has been duly authorized by all requisite Board action, that the signatories for Franchisee hereto are authorized to sign the Franchise acceptance, and that the joinder or consent of any other party, including a court, trustee, or referee, is not necessary to make valid and effective the execution, delivery, and performance of this Franchise. 4.5 Effect of Expiration/Termination. Upon expiration or termination of the Franchise without renewal or other authorization, Franchisee shall no longer be authorized to operate the Telecommunications Facilities within the Franchise Area and shall, to the extent it may lawfully do so, cease operation of the Telecommunications Facilities. Forthwith thereafter, except as provided in this Section, or as otherwise provided by ordinance, Franchisee shall: (1) remove its structures or property from the Right -of -Way and restore the Right -of -Way as required pursuant to the applicable Right - of -Way restoration standards; (2) sell its Telecommunications Facilities to another entity authorized to operate Telecommunications Facilities within the Franchise Area (which may include the City) upon City approval, to the extent the City may lawfully require its approval; or (3) abandon any Telecommunications Facilities in place in the Right -of -Way upon written notice to the City of Franchisee's intent to so do. If, within ninety (90) days of the City's receipt of Franchisee's notice of abandonment, the City determines that the safety, appearance, or use of the Right -of -Way would be adversely affected, the Telecommunications Facilities must be removed by Franchisee by a date reasonably specified by the City in light of the amount of work to be performed. In the event of failure by Franchisee properly to perform such work, then the City may, after thirty (30) days written notice to Franchisee, perform the work and collect the actual and reasonable costs thereof. 15. 4.6 Renewal. This Franchise may be renewed pursuant to the renewal provisions set forth in MMC Section 19.06.120 in Exhibit B. ARTICLE 5. PROTECTION OF THE CITY AND PUBLIC 5.1 Indemnification. 5.1.1 Limitation of Liability. Franchisee hereby releases, covenants not to bring suit and agrees to indemnify, defend and hold harmless the City, its elected and appointed officials, officers, employees, agents, representatives, engineers, and consultants from any and all claims, costs, judgments, awards, or liability to any person, including claims by Franchisee's employees to which Franchisee might otherwise be immune under Title 51 RCW, arising from injury or death of any person or damage to property of which the negligent acts or omissions of Franchisee, its agents, servants, officers, or employees in performing under this Franchise are the proximate cause. Franchisee further releases, covenants not to bring suit and agrees to indemnify, defend and hold harmless the City, its elected and appointed officials, officers, employees, agents, representatives, engineers, and consultants from any and all claims, costs, judgments, awards, or liability to any person including claims by Franchisee's employees, including those claims to which Franchisee might otherwise have immunity under Title 51 RCW, arising against the City solely by virtue of the City's ownership or control of the Rights -of -Way or other public properties, by virtue of Franchisee's exercise of the rights granted herein, or by virtue of the City's permitting Franchisee's use of the City's Rights -of -Way or other public property, based upon the City's inspection or lack of inspection of work performed by Franchisee, its agents and servants, officers or employees in connection with work authorized on the City's property or property over which the City has control, pursuant to this Franchise, or pursuant to any other permit or approval issued in connection with this Franchise. This covenant of indemnification shall include, but not be limited by this reference, to claims against the City arising as a result of the negligent acts or omissions of Franchisee, its agents, servants, officers, or employees in barricading, instituting trench safety systems or providing other adequate warnings of any excavation, construction, or work in any Right - of -Way or other public place in performance of work or services permitted under this Franchise. 5.1.2 Inspection. Inspection or acceptance by the City of any work performed by Franchisee at the time of completion of Construction shall not be grounds for avoidance of any of these covenants of indemnification. 5.1.3 Compromise of Claims. Said indemnification obligations shall extend to claims which are not reduced to a suit and any claims which may be compromised prior to the culmination of any litigation or the institution of any litigation. 5.1.4 Refusal of Tender of Defense. In the event that Franchisee refuses the tender of defense in any suit or any claim, said tender having been made pursuant to the indemnification clauses contained herein, and said refusal is subsequently determined V by a court having jurisdiction (or such other tribunal that the Parties shall agree to decide the matter), to have been a wrongful refusal on the part of Franchisee, then Franchisee shall pay all of the City's costs for defense of the action, including all reasonable expert witness fees and reasonable attorneys' fees and the reasonable costs of the City, including reasonable attorneys' fees of recovering under this indemnification clause. 5.1.5 Concurrent Negligence. In the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of Franchisee and the City, its officers, employees and agents, Franchisee's liability hereunder shall be only to the extent of Franchisee's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes Franchisee's waiver of immunity under Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the Parties. 5.1.6 Survival. The provisions of this Section shall survive the expiration or termination of this Franchise. 5.1.7 Assumption of Risk/Waiver. Notwithstanding any other provisions of this Section, Franchisee assumes the risk of damage to any Telecommunications Facilities located in the Right -of -Way from activities conducted by the City, its officers, agents, employees, and contractors, except to the extent any such damage or destruction is caused by or arises from the negligence or any willful or malicious action on the part of the City, its officers, agents, employees, or contractors. Franchisee releases and waives any and all claims against the City, its officers, agents, employees, or contractors for damage to or destruction of any Telecommunications Facility caused by or arising out of activities conducted by the City, its officers, agents, employees, and contractors, in the Right -of -Way or other public property subject to this Franchise, except to the extent any such damage or destruction is caused by or arises from the negligence or any willful or malicious action on the part of the City, its officers, agents, employees, or contractors. Franchisee further agrees to indemnify, hold harmless and defend the City against any claims for damages, including, but not limited to, business interruption damages and lost profits, brought by or under users of Franchisee's Telecommunications Facilities or service as the result of any interruption of service due to damage or destruction of any Telecommunications Facility caused by or arising out of activities conducted by the City, its officers, agents, employees, or contractors, except to the extent any such damage or destruction is caused by or arises from the negligence or any willful or malicious actions on the part of the City, its officers, agents, employees, or contractors. 5.2 Environmental Indemnity. See attached Exhibit E. 5.3 Insurance Requirements. See Attached Exhibit F. 5.4 Financial Security. See Attached Exhibit G. 17. 5.5 Parental Guarantee. If the Franchise is wholly owned or is controlled by another Person, the City may require Franchisee to cause such Person to provide, upon acceptance of this Franchise, a guarantee by such Person of performance by Franchisee of Franchisee's rights, duties and obligations herein, in substantially the form of the parental guarantee attached hereto as Exhibit H. "Control" shall mean de jure or de facto control over Franchisee and does not necessarily imply a majority ownership of Franchisee by such Person. If Franchisee is a partnership or limited liability company or similar entity, the City may require a guarantee from the principal partners/members of the partnership, limited liability company or similar entity. 5.6 Contractors/Subcontractors. Franchisee contractors and subcontractors performing Work in the Right -of -Way shall comply with such bond, indemnity and insurance requirements as may be required by City code or regulations, or other applicable Law. If no such requirements are set forth in the City code or regulations, Franchisee contractors and subcontractors shall comply with the requirements set forth in attached Exhibit I. 5.7 Liens. In the event that any City property becomes subject to any claims for mechanics', artisans', or materialmen's liens, or other encumbrances chargeable to or through Franchisee which Franchisee does not contest in good faith, Franchisee shall promptly, and in any event within 30 days, cause such lien claim or encumbrance to be discharged or released of record (by payment, posting of bond, court deposit, or other means), without cost to the City, and shall indemnify the City against all costs and expenses (including attorneys' fees) incurred in discharging and releasing such claim of lien or encumbrance. If any such claim or encumbrance is not so discharged and released, the City may pay or secure the release or discharge thereof at the expense of Franchisee after first giving Franchisee fifteen (15) business days' advance notice of its intention to do so. Nothing herein shall preclude Franchisee's or the City's contest of a claim for lien or other encumbrance chargeable to or through Franchisee or the City, or of a contract or action upon which the same arose. 5.8 Financial Conditions. 5.8.1 Franchise Fee. The Parties understand that, upon the Effective Date of this Franchise, RCW 35.21.860 prohibited the imposition of a municipal Franchise Fee upon revenues derived from Franchisee Telephone Business Activities; however, the Parties dispute the application of this prohibition to revenues derived by Franchisee from its activities within the Public Right -of -Way. The Parties have, for good and valuable consideration the adequacy of which is hereby acknowledged, agreed that for the term of this Franchise, no franchise fees shall be due or required. 5.8.2 Reimbursement of Direct Costs of Issuance RenewalAmendment and Administration. Franchisee shall reimburse the City for the City's Direct Costs relating to the issuance, renewal, amendment (if requested by or for the benefit of Franchisee) and administration of this Franchise. 10 5.8.3 Reimbursement of Direct Costs of Design Review and Ins ep ction. City approvals and inspections, as provided for in this Franchise, are for the sole purpose of protecting the City's rights as the owner or manager of the road Right -of -Way and are separate and distinct from the approvals and inspections and fees that may be required pursuant to a Regulatory Permit. Therefore, Franchisee shall reimburse to the City its Direct Costs of approvals and inspections, to the extent that such Direct Costs are not included in the costs for issuance of and compliance with the Regulatory Permit. Approvals and inspection, by way of example and not limitation, include review of design documents and inspection for compliance with Standards and plans approved by the City. 5.8.4 Reimbursement of Direct Costs of Altering Ri t-of-Way. Franchisee shall reimburse the City for the Direct Costs incurred by the City in planning, designing, constructing, installing, repairing or altering any City infrastructure, structure, or facility as the result of the actual or proposed presence in the Right -of -Way of Franchisee's Telecommunications Facilities. Such costs and expenses shall include, but not be limited to, the Direct Costs of City personnel and contractors utilized to oversee or engage in any work in the Right -of -Way as the result of the presence of Franchisee's Telecommunications Facilities in the Right -of -Way, and any time spent reviewing construction plans in order to either accomplish the relocation of Franchisee's Telecommunications Facilities or the routing or rerouting of any public utilities or Right - of -Way so as not to interfere with Franchisee's Telecommunications Facilities. Upon request as a condition of payment by Franchisee, all billing will be itemized so as to specifically identify the Direct Costs and expenses for each project for which the City claims reimbursement. A reasonable charge for the actual cost incurred in preparing the billing may also be included in said billing. 5.8.5 Franchisee Responsibility for Costs. Except as expressly provided otherwise in this Franchise, any acts that Franchisee, its contractors or subcontractors are required to perform under this Franchise shall be performed at their sole cost and expense. 5.8.6 Franchisee Work Performed by the City. Any work performed by the City that Franchisee has failed to perform as required pursuant to this Franchise and which is performed by the City in accordance with the terms of this Franchise, shall be performed at the cost and expense of Franchisee. Franchisee shall be obligated to pay the Direct Costs to the City of performing such work. 5.8.7 Costs to be Borne by Franchisee. Franchisee shall reimburse the City for all costs of publication of this Franchise, and any notices prior to any public hearing regarding this Franchise, contemporaneous with its acceptance of this Franchise. 5.8.8 Taxes and Fees. Nothing contained in this Franchise Agreement shall exempt Franchisee from Franchisee's obligation to pay any utility tax, business tax, or ad valorem property tax, now or hereafter levied against real or personal property within the City, or against any local improvement assessment imposed on Franchisee. IGa Any fees, charges and/or fines provided for in the Medina Municipal Code or any other City ordinance, and any compensation charged and paid for the Right -of -Way, whether pecuniary or in -kind, are separate from, and additional to, any and all federal, state, local, and City taxes as may be levied, imposed or due from Franchisee. 5.8.9 Itemized Invoice. Upon request and as a condition of payment by Franchisee of Direct Costs payable by Franchisee under this Franchise, the City shall submit an itemized billing so as to specifically identify the Direct Costs incurred by the City for each project for which the City claims reimbursement. 5.8.10 Time for Payment. All non -contested Direct Costs shall be due and paid within thirty (30) days of receipt of invoice; provided that, in the event that an itemized invoice is not provided at the time of receipt of invoice and the City receives a request from Franchisee for an itemized invoice within 30 days of receipt of invoice, such amounts shall be due and paid within (30) days of receipt of the itemized invoice. 5.8.11 Overdue Payments. Any Direct Costs payable under this Franchise by Franchisee which are not paid upon the due date thereof shall bear interest at a rate of twelve (12%) percent per annum. 5.8.12 Contesting Char es. Franchisee may contest all or parts of any Direct Cost within thirty (30) days of receipt of any invoice. The City shall investigate Franchisee's contest and make appropriate adjustments to the invoice and resubmit the invoice to Franchisee. Franchisee shall pay the Direct Costs as itemized in the resubmitted invoice which shall be due within thirty (30) days of receipt of the resubmitted invoice. However, Franchisee reserves the right to further contest any charges through Legal Action. 5.8.13 Receivables. Either Party hereto may assign any monetary receivables due them under this Franchise; provided, however, such transfer shall not relieve the assignor of any of its rights or obligations under this Franchise. 5.8.14 Relationship to MMC. This Section 5.8 supersedes MMC Sections 19.06.090, 19.06.160, and 19.06.170. ARTICLE 6. ENFORCEMENT AND REMEDIES 6.1 Communication and Discussion. The Parties are fully committed to working with each other throughout the Term of this Franchise and agree to communicate regularly with each other at all times so as to avoid or minimize Disputes. The Parties agree to act in good faith to prevent and resolve potential sources of conflict before they escalate into a Dispute. The Parties each commit to resolving a Dispute in an amicable, professional and expeditious manner. 20. 6.2 Breach/Right to Cure Breach. 6.2.1 Notice. Except as provided at Section 6.2.4 herein, if a Party believes that the other Party is in Breach, such Parry shall give written notice to the Noticed Parry stating with reasonable specificity the nature of the alleged Breach. The Noticed Party shall have thirty (30) days, or such lesser or greater time as specified in the notice, from the receipt of such notice to: 6.2.1.1 Respond to the other Party, contesting that Party's assertion that a Breach has occurred; or 6.2.1.2 Cure the alleged Breach; or 6.2.1.3 Notify the other Party that the Noticed Party cannot cure the Breach within the time provided in the notice because of the nature of the Breach. In the event the Breach cannot be cured within time provided in the notice, the Noticed Party shall promptly take all reasonable steps to cure the Breach and notify the other Party in writing and in detail as to the exact steps that will be taken and the projected completion date. In such case, the other Party may set a meeting to determine whether additional time beyond the time provided in the notice is indeed needed, and whether the Noticed Party's proposed completion schedule and steps are reasonable. 6.2.2 Time to Cure. When specifying the time period for cure, the Party giving notice shall take into account, the nature and scope of the alleged Breach, the nature and scope of the work required to cure the Breach, whether the Breach has created or will allow to continue an unsafe condition, the extent to which delay in implementing a cure will result in adverse financial consequences or other harm to the Party giving notice, and whether delay in implementing a cure will result in a violation of applicable Law or breach of contract. 6.2.3 Failure to Cure. If the Noticed Party fails to promptly commence and diligently pursue cure of a Breach to completion to the reasonable satisfaction of the Party giving notice and in accordance with the time to cure, as established pursuant to Sections 6.2.1, 6.2.1.3 and 6.2.2, then the party giving such notice shall be entitled to seek remedies as set forth in Section 6.3 herein or any such other remedies allowed at Law, in contract or in equity. 6.2.4 Election. In the event of a Breach that may also constitute grounds for revocation as set forth at Section 6.4.1.1 through 6.4.1.12 herein, the City may, at its election and in lieu of the notice and cure procedures set forth in Section 6.2.1 through 6.2.3, follow the procedures and exercise the rights and remedies as set forth in Section 6.4 herein. 6.3 Remedies. The Parties have the right to seek any and all of the following remedies, singly or in combination, in the event of Breach: 21. 6.3.1 Specific Performance. Each Party shall be entitled to specific performance of each and every obligation of the other Party under this Franchise without any requirement to prove or establish that such Party does not have an adequate remedy at law. The Parties hereby waive the requirement of any such proof and acknowledge that either Party would not have an adequate remedy at law for the commission of a Material Breach hereunder. 6.3.2 Injunction. Each Party shall be entitled to restrain, by injunction, the actual or threatened commission or attempt of an Event of Default and to obtain a judgment or order specifically prohibiting a Material Breach of this Franchise without, in either case, being required to prove or establish that such Party does not have an adequate remedy at law. The Parties hereby waive the requirement of any such proof and acknowledge that the other Party would not have an adequate remedy at law for the commission of a Material Breach hereunder. 6.3.3 Damages; Equitable Relief. Each Party shall be entitled to commence a Legal Action at law for monetary damages or impose liquidated damages as set forth below or seek other equitable relief. 6.4 Revocation. 6.4.1 Cause. This Franchise, and all rights granted hereunder to Franchisee, may be revoked by the City for any one or more of the following reasons: 6.4.1.1 Construction or operation in the City or in the Right -of - Way of the City or upon City property without a grant of authority from an authorization, franchise, or lease; Franchisee; 6.4.1.2 Construction or operation at an unauthorized location; 6.4.1.3 Unauthorized substantial transfer of control of 6.4.1.4 Unauthorized assignment of the Franchise; 6.4.1.5 Unauthorized sale, assignment or transfer of a Franchisee's Franchise assets, or a substantial interest therein; 6.4.1.6 Misrepresentation by or on behalf of Franchisee in any application or written statement upon which the City relies in making the decision to grant, review or amend the Franchise pursuant to MMC Title 19 (Exhibit B) or this Franchise; 6.4.1.7 Abandonment of Telecommunications Facilities in the public Right -of -Way or upon City property; 22. 6.4.1.8 Failure to relocate or remove Telecommunications Facilities as required in this Franchise; and as due the City; Title 19; or 6.4.1.9 Failure to pay taxes, compensation, fees or costs when 6.4.1.10 Insolvency or bankruptcy of Franchisee; 6.4.1.11 Violation of any material applicable provision of MMC 6.4.1.12 Violation of any material term of this Franchise. 6.4.2 Notice and Duty to Cure. In the event that the City believes that grounds exist for revocation of this Franchise, Franchisee shall be given written notice of the apparent violation or noncompliance, providing a short and concise statement of the nature and general facts of the violation or noncompliance, and providing Franchisee a reasonable period of time not exceeding 30 days to furnish evidence: 6.4.2.1 That corrective action has been, or is being actively and expeditiously pursued, to remedy the violation or noncompliance; 6.4.2.2 That rebuts the alleged violation or noncompliance; or 6.4.4.3 That it would be in the public interest to impose some penalty or sanction less than revocation. 6.4.3 Hearin. In the event that Franchisee fails to provide evidence reasonably satisfactory to the City as provided in Section 6.4.2 herein, the City shall refer the apparent violation or noncompliance to the City Council. The City Council shall provide Franchisee with notice and a reasonable opportunity to be heard concerning the matter. 6.4.4 Standards for Revocation or Lesser Sanctions. If the City Council determines that Franchisee willfully violated or failed to comply with any of the applicable provisions of MMC Title 19 (Exhibit B) or this Franchise, or through willful misconduct or gross negligence failed to heed or comply with any notice given Franchisee by the City under the applicable provisions of MMC Title 19 (Exhibit B) or this Franchise, then Franchisee shall, at the election of the City Council, forfeit all rights conferred hereunder and the Franchise may be revoked or annulled by the City Council. The City Council may elect, in lieu of the above and without any prejudice to any of its other legal rights and remedies, to pursue other remedies as set forth in Section 6.3 herein. The City Council shall utilize the following factors in analyzing the nature, circumstances, extent, and gravity of the violation and in making its determination under this Section: 23. 6.4.4.1 6.4.4.2 6.4.4.3 6.4.4.4 same or other requirements; 6.4.4.5 6.4.4.6 admitted or cured. Whether the misconduct was egregious; Whether substantial harm resulted; Whether the violation was intentional; Whether there is a history of prior violations of the Whether there is a history of overall compliance; and Whether the violation was voluntarily disclosed, 6.5 Assessment of Liquidated Dama-ges. 6.5.1 Because it may be difficult to ascertain or quantify the harm to the City in the event of a Breach of this Franchise by Franchisee, the Parties agree to liquidated damages as a reasonable estimation of the actual economic losses resulting from a Breach of those provisions of this Franchise set forth in Section 6.5.7. To the extent that the City elects to assess liquidated damages as provided in this Franchise, such damages shall be the City's sole and exclusive remedy for recovery of damages resulting from such Breach and shall not exceed a time period of one hundred eighty (180) days. Nothing in this subsection is intended to preclude the City from exercising any other right or remedy with respect to a Breach that continues past the time the City stops assessing liquidated damages for such Breach. 6.5.2 Prior to assessing any liquidated damages, the City shall follow the procedures set forth in this Franchise that provide Franchisee proper notice and a right to cure when applicable. 6.5.3 With the exception of failure to comply with a stop work order pursuant to Section 7.4.4 herein, the City shall not assess any liquidated damages if Franchisee has cured or commenced to and completes the cure under the enforcement provisions of Article 6 of this Franchise. In the event Franchisee fails to cure, the City may assess liquidated damages and shall inform Franchisee in writing of the assessment. Franchisee shall have thirty (30) days to pay the damages. The City may immediately begin assessing liquidated damages upon issuance of a stop work order in the event that Franchisee, or its contractors or subcontractors, fails to comply with such stop work order. 6.5.4 The first day for which liquidated damages may be assessed, if there has been no cure after the end of the applicable cure period, shall be the day that Franchisee received the notice of Breach. 24. 6.5.5 Franchisee may challenge in court any assessment of liquidated damages. 6.5.6 The liquidated damages amount may be adjusted by the City every five years from the date of execution of this Franchise to take into account cumulative inflation. 6.5.7 Pursuant to the requirements outlined herein, liquidated damages shall not exceed the following amounts: 6.5.7.1 One hundred dollars ($100.00) per day for failure to comply with the requirements of the following Sections: 2.2 (Authorized Services); 2.7 (Transfer); 4.5 (Expiration/Termination), 5.3 (Insurance Requirements), 5.4 (Financial Security), 5.5 (Parental Guarantee); and 6.5.7.2 Five hundred dollars ($500) per day for the first two days for failure to comply with the requirements of Section 7.4.4 (Stop Work), and one thousand dollars ($1,000) per day for each day thereafter. 6.5.8 It is not the City's intention to subject Franchisee to liquidated damages for a Breach of the Franchise where the violation was a good faith error that resulted in no or minimal negative impact to the City, or where strict performance would result in practical difficulties and hardship to Franchisee which outweighs the benefit to be derived by the City. The City may not collect both liquidated damages and actual damages for the same violation. 6.5.9 Franchisee shall not be: (1) obligated to pay these liquidated damages; or (2) held to violation if the noncompliance is due to a Force Majeure as set forth in Section 8.15 herein. 6.6 Receivership. At the option of the City, subject to applicable Law and lawful orders of courts of jurisdiction, this Franchise may be revoked after the appointment of a receiver or trustee to take over and conduct the business of Franchisee whether in a receivership, reorganization, bankruptcy or other action or proceeding, unless: 6.6.1 The receivership or trusteeship is timely vacated; or 6.6.2 The receiver or trustee has timely and fully complied with all the terms and provisions of this Franchise, and has remedied all defaults under the Franchise. Additionally, the receiver or trustee shall have executed an agreement duly approved by the court having jurisdiction, by which the receiver or trustee assumes and agrees to be bound by each and every term, provision and limitation of this Franchise. 25. ARTICLE 7. CONDITIONS UPON USE OF RIGHT-OF-WAY 7.1 Conditions Precedent to Work. Except as may be otherwise required by applicable City code, rule, regulation or Standard, Franchisee shall comply with the following as a condition precedent to Work: 7.1.1 Regulatory Permits Required. Except as otherwise set forth in this Franchise, prior to performing any Work in the Right -of -Way requiring a Regulatory Permit, Franchisee shall apply for, and obtain in advance, such appropriate Regulatory Permits from the City as are required by ordinance or rule; provided that, Franchisee may perform preliminary site investigation Work within a proposed Franchise Area pursuant to such authorization (e.g., consent to entry, temporary street occupancy permit) as the City and Franchisee may otherwise agree upon. Franchisee shall pay all generally applicable and lawful fees for the requisite City Regulatory Permits. In the event that, as a condition of applying for a Regulatory Permit, Franchisee must have authorization from the City (as the owner/manager of the property to be developed) to apply for such Regulatory Permit, the general Franchise grant given herein shall, as to the proposed Franchise Area, constitute any such consent or authorization of the City that is necessary for such application. This consent or authorization shall not be deemed to be consent to or approval of the governmental action being sought. 7.1.2 Compliance with Franchise. Franchisee shall be in material compliance with the Franchise, including by way of example and not limitation, payment of fees invoiced to Franchisee for City reimbursable costs and expenses related to review and approval of the Regulatory Permit(s), proof of insurance and proof of financial security. 7.2 Compliance with Standards/Codes. Except as may be preempted by federal or state Laws, and subject to Article 3, all Work shall be performed in compliance with the following "Standards": 7.2.1 City Regulations. City Ordinances and regulations adopted by the City Engineer or Public Works Director establishing standards for placement of Telecommunications Facilities in Right -of -Way, including by way of example and not limitation, the specific location of Telecommunications Facilities in the Right -of -Way. This shall also include any road design and construction standards set forth in Title 12 of the Medina Municipal Code that the City shall deem necessary to provide adequate protection to the Right -of -Way, its safe operation and maintenance; and 7.2.2 Industry Standards. All Telecommunications Facilities shall be durable and Constructed in accordance with good engineering practices and standards promulgated by the government and industry for placement, Construction, design, type of materials and operation of Franchisee Telecommunications Facilities. 26. Notwithstanding the foregoing, nothing in Section 7.2 shall be read or interpreted as a waiver of any vested rights Franchisee may have or a waiver of any rights Franchisee may have for a Telecommunications Facility that qualifies as a nonconforming use or structure. 7.3 Undergrounding Requirements. 7.3.1 MMC Section 19.10.050(A) (Exhibit B) requires all new Telecommunications Facilities to be located underground unless otherwise provided in a franchise. The Parties agree that this requirement shall not apply to Antennas, Support Structures, Ancillary Facilities and Equipment Housing Structures, as those terms are defined in MMC Chapter 17.90, that are located above ground pursuant to the requirements of MMC Chapter 17.90. Further, the Parties agree that in those portions of the Franchise Area where the wires and lines of electric, cable and/or telephone service providers are located above grade, Franchisee is authorized to Construct its fiber optic cables above grade. In those portions of the Franchise Area where all of the wires and lines of electric, cable and telephone service providers are located underground, Franchisee shall Construct its fiber optic cables underground. In any part of the Franchise Area where the wires and lines of the electric, cable and telephone service providers are both aerial and underground, Franchisee shall have the discretion to Construct all of its fiber optic cables, or any part thereof, aerially or underground. Whenever any new or existing electric utilities, cable facilities, or Telecommunications Facilities are located or relocated underground within a City Right -of -Way , if Franchisee fiber optic cable or related facilities occupies the same Right -of -Way, it shall relocate its fiber optic cable and related facilities underground at no expense to the City. Absent extraordinary circumstances or undue hardship as determined by the city manager, such relocation shall be made concurrently to minimize the disruption of the Right -of -Way. 7.3.2 Franchisee and the City recognize that situations may occur in the future where the City may desire to place its own conduit and fiber optic cable in trenches or bores opened by Franchisee. Franchisee agrees to cooperate with the City in any such construction that involves trenching or boring. Franchisee shall allow the City to lay City conduit and fiber optic cable in Franchisee's trenches and bores, provided that the City and Franchisee enter into a mutually acceptable cost sharing arrangement consistent with State law. The City shall be responsible for maintaining its respective conduit and fiber optic cable, which is buried in Franchisee's trenches and bores. 7.4 Work in the Ri t-of-Way. 7.4.1 Least Interference. Work in the Right -of -Way shall be done in a manner that does not unnecessarily hinder or obstruct the free use of the Right -of -Way or other public property and which causes the least interference with the rights and reasonable convenience of property owners, businesses and residents along the Right -of -Way. Franchisee Telecommunications Facilities shall be designed, located, and Constructed so as not to impair the use or operation of any street improvements, utilities, and related 27. facilities of the City or the City's existing lessees, licensees, franchisees, easement beneficiaries or lien holders, without prior written consent of City or the parties whose improvements are impaired and whose consent is required pursuant to agreements with the City existing prior to the Effective Date. Franchisee's Telecommunications Facilities shall be designed, located, and Constructed in such a manner as not to interfere with any planned utilities. For purposes of this Section, "planned" shall mean utilities which the City intends to construct in the future, which intent is evidenced by the inclusion of said utility project in a Capital Investment Program Plan, a comprehensive utility plan, a transportation improvement plan, the City's Comprehensive Plan, or other written construction or planning schedule. 7.4.2 Work of Contractors and Subcontractors. Franchisee's contractors and subcontractors performing Work in the Franchise Area shall be licensed and bonded in accordance with the City's and State's applicable regulations and requirements. Any contractors or subcontractors performing Work within the Right -of -Way on behalf of Franchisee shall be deemed servants and agents of Franchisee for the purposes of this Franchise and are subject to the same restrictions, limitations and conditions as if the Work were performed by Franchisee. Franchisee shall be responsible for all Work performed by its contractors and subcontractors and others performing Work at Franchisee's request as if the Work were performed by it, and shall ensure that all such Work is performed in compliance with this Franchise and other applicable Laws, and shall be jointly and severally liable for all damages and correcting all damage caused by them. It is Franchisee's responsibility to ensure that contractors, subcontractors or other Persons performing Work at Franchisee's request are familiar with the requirements of this Franchise and other applicable Laws governing the Work performed by them. 7.4.3 Emergency Permits. In the event that Emergency repairs are necessary, Franchisee shall, as soon as practicable under the circumstances, notify the city manager or designee of the need for such repairs. Franchisee may initiate such Emergency repairs, and shall apply for appropriate Regulatory Permits, to the extent necessary, within forty-eight (48) hours after discovery of the Emergency. In the event of an Emergency, a Franchisee may perform Emergency Work in the Right -of -Way without first securing a Regulatory Permit for such Emergency Work, provided that: (1) Franchisee notifies the City in advance of performing such Emergency Work and the type and location of such Work; (2) Franchisee applies for a Regulatory Permit on the first business day following commencement of such Work; and (3) Franchisee, at its sole cost and expense, makes its Work performed in the Right -of -Way available for inspection to determine compliance with applicable Laws and Standards. 7.4.4 Stop Work. If a stop work order is issued consistent with the Medina Municipal Code, Franchisee shall cease, and shall cause its contractors and subcontractors to cease, such activity until the City is reasonably satisfied that Franchisee is in compliance. If an unsafe condition is found to exist, the City, in addition to taking any other action permitted under applicable Law, may order Franchisee to make the necessary repairs and alterations specified therein forthwith to correct the unsafe condition by a time the City reasonably establishes. The City has the right to inspect, repair and correct the 28. unsafe condition if Franchisee fails to do so, and to charge Franchisee the Direct Costs thereof. 7.4.5 Dedication of City Utilities/Public Improvements. Upon substantial completion of Construction of the Telecommunications Facilities and any related restoration of or improvements to or within the Right -of -Way, including without limitation, curbs, gutters, sidewalks, underlayment, roadway surface, pipe, connectors, catch basins, or any part thereof that will be dedicated to City ownership (collectively "Dedicated Improvements"), Franchisee shall submit a written request to the City for a final inspection and acceptance of dedication of all Dedicated Improvements. When the City is reasonably satisfied that the Work related to the Dedicated Improvements is substantially complete, it shall by ordinance, resolution or other lawful means accept ownership of such Dedicated Improvements and thereafter become responsible for maintenance, repair, and replacement of the same. 7.5 Alterations. Except as may be shown in any plans approved by the City, or as may be necessary to respond to an Emergency, Franchisee, and Franchisee's contractors and subcontractors, may not make any material alterations to the Franchise Area without City's prior written consent. Material alteration shall include by way of example and not limitation, a change in the dimension or height of the above ground Telecommunications Facilities or the addition of or change in configuration of an antenna; but shall not include changes to the equipment used as part of the Telecommunications Facilities that do not affect the exterior appearance of the Telecommunications Facilities. If Franchisee desires to change either the location of any Telecommunications Facilities or otherwise materially deviate from the approved design of any of the Telecommunications Facilities, Franchisee shall submit such change to the City for its approval pursuant to the procedures outlined in the Medina Municipal Code. Franchisee shall have no right to commence any such alteration change until after Franchisee has received City's approval of such change in writing. 7.6 General Conditions. 7.6.1 Right -of -Way Meetings. Subject to receiving advance notice, Franchisee shall make reasonable efforts to attend and participate in meetings of the City regarding Right -of -Way issues that may impact its Telecommunications Facilities. 7.6.2 Compliance Inspection. Following the completion of Construction, Franchisee's Telecommunications Facilities shall be subject to the City's right of periodic inspection upon at least twenty-four (24) hours notice, or, in case of an Emergency, upon demand without prior notice, to determine compliance with the provisions of this Franchise or Regulatory Permit or other applicable Law over which the City has jurisdiction. Franchisee shall respond to requests for information regarding its Telecommunications Facilities as the City may from time to time issue to determine compliance with this Franchise, including requests for information regarding Franchisee's plans for Construction and the purposes for which the Telecommunications 29. Facility is being Constructed. Notwithstanding the foregoing, the City agrees that it shall only conduct such inspections when: (a) it has received a complaint; (b) such inspection is required as part of the approval of the Regulatory Permit; or (c) when there is reasonable cause to believe that a violation exists. Franchisee reserves the right to dispute any City charge for such inspections if Franchisee believes that such inspection was unnecessary or redundant. 7.6.3 One Call. If Franchisee places Telecommunications Facilities underground, Franchisee shall, at its own expense, continuously be a member of the State of Washington one number locator service under Chapter 19.122 RCW, or an approved equivalent, and shall comply with all such applicable rules and regulations. Franchisee shall locate and field mark its Telecommunications Facilities for the City at no charge. 7.6.4 Graffiti Removal. Within 48 hours after notice from the City, Franchisee shall remove any graffiti on any part of its Telecommunications Facilities, including, by way of example and not limitation, equipment cabinets. If Franchisee fails to do so, the City may remove the graffiti and bill Franchisee for the cost thereof. 7.6.5 Dangerous Conditions, Authority for City to Abate. Whenever Construction of Telecommunications Facilities has caused or contributed to a condition that appears to substantially impair the lateral support of the adjoining Right -of -Way, street, or public place, or endangers the public, any utilities, or City -owned property, the City may reasonably require Franchisee to take reasonably necessary action to protect the Right -of -Way, the public, adjacent public places, City -owned property, streets, and utilities. Such action may include compliance within a reasonably prescribed time. In the event that Franchisee fails or refuses to promptly take the actions directed by the City, or fails to fully comply with such directions, or if Emergency conditions exist which require immediate action, the City may, to the extent it may lawfully do so, take such actions as are necessary to protect the Right -of -Way, the public, adjacent public places, City -owned property, streets, and utilities, to maintain the lateral support thereof, or actions regarded as necessary safety precautions; and Franchisee shall be liable to the City for the Direct Costs thereof to the extent of Franchisee's responsibility for the condition. 7.6.6 No Du . Notwithstanding the right of the City to inspect the Work, issue a stop work order, and order or make repairs or alterations, the City has no duty or obligation to observe or inspect, or to halt work on, the applicable Telecommunications Facilities, it being solely Franchisee's responsibility to ensure that the Telecommunications Facilities are Constructed and operated in strict accordance with this Franchise, the approved plans, the Standards, and applicable Law. Neither the exercise nor the failure by the City to exercise any right set forth in this Article 7 shall alter the liability allocation set forth in this Franchise. 7.6.7 Roadside Hazard. All of Franchisee's Telecommunications Facilities shall be kept by Franchisee at all times in a reasonably safe and hazard -free condition. Franchisee shall ensure that Telecommunications Facilities within the Right- 30. of -Way do not become or constitute an impassible roadside obstacle and do not interfere with or create a hazard to maintenance of and along the Right -of -Way. In such event, or in the event that the City determines that a Telecommunications Facility within the Right - of -Way is impairing passage within the Right -of -Way or may interfere with or create a hazard to maintenance of and along the Right -of -Way, Franchisee shall: 7.6.7.1If the hazard results from disrepair, repair the Telecommunications Facility to a safe condition; 7.6.7.2 Relocate the Telecommunications Facility to another place within the Right -of -Way or underground; 7.6.7.3 Crash -protect the Telecommunications Facility; or 7.6.7.4In the event that the Telecommunications Facility is screened from view (i.e., not readily visible from all directions by persons standing at ground level), remove or trim vegetation in and around the Telecommunications Facility. Franchisee, at all times, shall employ the standard of care attendant to the risks involved and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injury, or nuisance to the public or to Franchisee's agents or employees. Franchisee, at its own expense, shall repair, renew, change, and improve its Telecommunications Facilities from time to time as may be necessary to accomplish this purpose. Franchisee shall use suitable barricades, flags, flaggers, lights, flares and other measures as required for the safety of all members of the general public and to prevent injury or damage to any person, vehicle or property by reason of such Work in or affecting such Right -of -Way or property. All excavations made by Franchisee in the Right -of -Way shall be properly safeguarded for the prevention of accidents. 7.6.8 Verification of Alignment/Depth. Upon the reasonable request and prior written notice, in non -Emergency situations, with at least thirty (30) days notice provided by the City and in order to facilitate the location, alignment and design of Public Improvements, Franchisee agrees to locate, and if reasonably determined necessary by the City, to excavate and expose portions of its Telecommunications Facilities for inspection so that the location of same may be taken into account in the improvement design; provided that, Franchisee shall not be required to excavate and expose its Telecommunications Facilities unless Franchisee's record drawings and maps of its Telecommunications Facilities are reasonably determined by the City to be inadequate for purposes of this subsection. 7.7 Telecommunications Facility Relocation at Request of the City for Public Improvements. 7.7.1 Public Project. The City may require Franchisee to alter, adjust, relocate, or protect in place its Telecommunications Facilities within the Right -of -Way 31. when reasonably necessary for Construction, alteration, repair, or improvement of any portion of the Right -of -Way for purposes of public welfare, health, or safety ("Public Improvements"). Such Public Improvements include, by way of example but not limitation, Right -of -Way Construction; Right -of -Way repair (including resurfacing or widening); change of Right -of -Way grade; Construction, installation or repair of sewers, drains, water pipes, power lines, signal lines, communication lines, or any other type of government -owned communications utility or public transportation systems, public work, public facility, or improvement of any government owned utility; Right -of -Way vacation; and the Construction of any Public Improvement by any governmental agency acting in a governmental capacity or by a developer as required by development approval. 7.7.2 Alternatives. Franchisee may, after receipt of written notice requesting a relocation of its Telecommunications Facilities, submit to the City written alternatives to such relocation. The City shall evaluate such alternatives and advise Franchisee in writing if one or more of the alternatives are suitable to accommodate the Public Improvement which would otherwise necessitate relocation of the Telecommunications Facilities. If so requested by the City, Franchisee shall submit additional information to assist the City in making such evaluation. The City shall give each alternative proposed by Franchisee full and fair consideration, within a reasonable time, so as to allow for the relocation Work to be performed in a timely manner. In the event the City ultimately determines, in its sole discretion, that there is no other reasonable alternative, Franchisee shall relocate its Telecommunications Facilities as otherwise provided in this Section. In the event that the City reasonably determines that it does not have available resources to evaluate Franchisee's proposal, the City shall not be obligated to further consider such proposal unless and until Franchisee funds the additional costs to the City to complete its evaluation. 7.7.3 Notice/Timeline. The City shall notify Franchisee as soon as practicable of the need for relocation for a Public Improvement and shall specify the date by which relocation shall be completed. Except in case of Emergency, such notice shall be no less than one hundred and eighty (180) days. Within 30 days following written notice from the City, Franchisee shall provide a schedule to the City indicating the estimated completion date for temporarily or permanently removing, relocating, changing, or altering the position of any Telecommunications Facilities within the Right - of -Way or upon City property. In calculating the date that relocation must be completed, City shall consult with Franchisee and consider the extent of Telecommunications Facilities to be relocated, the service requirements, the time required to obtain the Regulatory Permits to relocate the Telecommunications Facilities to the new location(s), and the construction sequence for the relocation, within the overall project construction sequence and constraints, to safely complete the relocation. Franchisee shall complete the relocation by the date specified, unless the City, or a reviewing court, establishes a later date for completion, after a showing by Franchisee that the relocation cannot be completed by the date specified using best efforts and meeting safety and service requirements. 32. 7.7.4 Coordination of Work. Franchisee acknowledges and understands that any delay by Franchisee in performing the Work to alter, adjust, relocate, or protect in place its Telecommunications Facilities within the Right -of -Way may delay, hinder, or interfere with the work performed by the City and its contractors and subcontractors in furtherance of Construction, alteration, repair, or improvement of the Public Improvement, and result in damage to the City, including but not limited to, delay claims. Franchisee shall cooperate with the City and its contractors and subcontractors to coordinate such Franchisee Work to accommodate the Public Improvement project and project schedules to avoid delay, hindrance of, or interference with such project. 7.7.5 Failure to Comply. Should Franchisee fail to alter, adjust, protect in place or relocate any Telecommunications Facilities ordered by the City to be altered, adjusted, protected in place, or relocated, within the time prescribed pursuant to Section 7.7.3, or if it is not done to the City's reasonable satisfaction, the City may, to the extent the City may lawfully do so, cause such work to be done and bill the Direct Costs of the work to Franchisee. In such event, the City shall not be liable for any damage to any portion of Franchisee's Telecommunications Facilities, unless directly or proximately caused by willful, intentional, or malicious acts by the City. 7.7.6 Assignment of Rights. In addition to any other rights of assignment the City may have, the City may from time to time assign or transfer to its contractors or subcontractors its rights under Sections 7.7 or 7.9 of this Franchise to require Franchisee to alter, adjust, relocate, or protect in place its Telecommunications Facilities within the Right -of -Way to accommodate a Public Improvement. Franchisee acknowledges and consents to such an assignments)/transfer(s) and agrees that it is bound by all lawful orders issued by such assignee(s) of the City under color of authority of such assignments)/transfer(s) as though such orders had been issued by the City under the terms and conditions of this Franchise. Such assignment/transfer is an assignment/transfer of the City's contract rights under this Franchise and shall not in any way be interpreted or construed as an assignment, transfer, delegation or relinquishment of the City's rights under its police powers to require Franchisee to alter, adjust, relocate, or protect in place its Telecommunications Facilities within the Right -of -Way to accommodate a Public Improvement. 7.7.7 Reimbursement for Costs. Notwithstanding the cost allocation provisions set forth in this Franchise, Franchisee does not waive its right(s) to and shall be entitled to seek reimbursement of its relocation costs as may be otherwise specifically set forth and authorized in statute. 7.8 Movement of Telecommunications Facilities for Others. 7.8.1 Private Benefit. If any alteration, adjustment, temporary relocation, or protection in place of any of Franchisee's Telecommunications Facilities is required to accommodate the Construction of facilities or equipment that are not part of a Public Improvement project, Franchisee shall, after at least ninety (90) days advance written notice, take action to effect the necessary changes requested by the requesting entity; 33. provided that, (a) the Person requesting the same pays for Franchisee's time and material costs associated with the requested work; (b) the alteration, adjustment, temporary relocation or protection in place is reasonably necessary to accommodate such work; (c) the Person requesting the alteration, adjustment, temporary relocation, or protection in place considers alternatives in the same manner as provided at Section 7.7.2; (d) such alteration, adjustment, temporary relocation or protection in place does not unreasonably interfere with Franchisee's ability to continue to provide Telecommunications service; (e) Franchisee is able to obtain all necessary Regulatory Permits before completing such alteration, adjustment, temporary relocation or protection in place; and (f) such alteration, adjustment, or temporary relocation is not requested for the purpose of obtaining a competitive advantage over Franchisee. 7.8.2 Temporary Changes for Other Persons. At the request of any Person holding a valid permit and upon reasonable advance notice, Franchisee shall temporarily raise, lower or remove its wires as necessary to permit the moving of a building, vehicle, equipment or other item. The expense of such temporary changes shall be paid by the permit holder. Franchisee shall be given not less than fourteen (14) days' advance notice to arrange for such temporary wire changes. 7.9 Movement of Telecommunications Facilities During Emergencies. 7.9.1 Immediate Threat. In the event of an unforeseen event, condition or circumstance that creates an immediate threat to the public safety, health, or welfare, the City shall have the right to require Franchisee to shut down, relocate, remove, replace, modify, or disconnect Franchisee's Telecommunications Facilities located in the Right -of - Way at the expense of Franchisee without regard to the cause or causes of the immediate threat. 7.9.2 Emergency. In the event of an Emergency, or where a Telecommunications Facility creates or is contributing to an imminent danger to health, safety, or public property, the City shall have the right to require Franchisee to shut down, relocate, modify or disconnect one or more of its Telecommunications Facilities located in the Right -of -Way at Franchisee's expense. 7.9.3 Notice. During Immediate Threats and/or Emergencies, the City shall endeavor to, as soon as practicable, provide notice to Franchisee of such Immediate Threat or Emergency at a designated response contact number, to allow Franchisee the opportunity to respond and rectify the problem without disrupting Franchisee's Telecommunications service. To the extent Franchisee fails to timely respond to such notice, the City may protect, support, temporarily disconnect, remove, or relocate any or all parts of Franchisee's Telecommunications Facilities located within the Right -of -Way to the extent the City, in its sole discretion, determines it is necessary to respond to the Immediate Threat or Emergency, and the City may charge Franchisee for the reasonable costs incurred. 34. 7.9.4 Limitation on Liability. The City shall not be liable for any direct, indirect, or any other such damages suffered by any person or entity of any type as a direct or indirect result of the City's actions under this Section, unless directly or proximately caused by willful, intentional, or malicious acts by the City. 7.10 Record of Installations. 7.10.1 Planned Improvements. Upon written request of the City, Franchisee shall provide the City with the most recent update available of any planned improvements to its Telecommunication Facilities to the extent such plans do not contain confidential or proprietary information or such information can be redacted; provided, however, any such plan submitted shall be for informational purposes only and shall not obligate Franchisee to undertake any specific improvements, nor shall such plan be construed as a proposal to undertake any specific improvements. 7.10.2 Maps/Record Drawings of Telecommunications Facilities. After Construction involving the locating or relocating of Telecommunications Facilities, or upon request by the City, Franchisee shall provide the City with accurate copies of all record drawings and maps showing the horizontal and vertical location and configuration of all located or relocated Telecommunications Facilities within the Right -of -Way. These record -drawings and maps shall be provided at no cost to the City, and shall include hard copies and digital copies in a format reasonably specified by the City. As to any such record drawings and maps so provided, Franchisee does not warrant the accuracy thereof and to the extent the location of the Telecommunications Facilities are shown, such Telecommunications Facilities are shown in their approximate location. 7.11 Restoration of Ri t-of-WgL Public and Private Property. 7.11.1 Restoration after Construction. Franchisee shall, after completion of Construction of any part of its Telecommunications Facilities, leave the Right -of -Way and other property disturbed thereby, in as good or better condition in all respects as it was in before the commencement of such Construction. Franchisee agrees to promptly complete restoration work to the reasonable satisfaction of the City. 7.11.2 Notice. If Franchisee's Work causes unplanned, unapproved, or unanticipated disturbance of or alteration or damage to Right -of -Way or other public or private property, Franchisee shall promptly notify the property owner within twenty-four (24) hours of discovery. 7.11.3 Duty to Restore. If Franchisee's Work causes unplanned, unapproved, or unanticipated disturbance of or alteration or damage to the Right -of -Way or other public property, it shall promptly restore such Right -of -Way and public property to as good or better condition as existed before the Work was undertaken, unless otherwise directed by the City. If the City determines that complete or satisfactory restoration is not obtainable, the City shall have the right to require compensation for the less than complete or satisfactory condition of the Right -of -Way or public property. Franchisee 35. shall initiate the restoration work within forty-eight (48) hours or as authorized by the City's Public Works Director, and shall diligently continue such restoration work until completed. 7.11.4 Temporary Restoration. If weather or other conditions do not allow the complete restoration required by this Section, Franchisee shall temporarily restore the affected Right -of -Way or public property. Franchisee shall promptly undertake and complete the required permanent restoration when the weather or other conditions no longer prevent such permanent restoration. 7.11.5 Survey Monuments. All survey monuments which are disturbed or displaced by any Work shall be referenced and restored, as per WAC 332-120, as the same now exists or may hereafter be amended, and pursuant to all pertinent federal, state and local standards and specifications. 7.11.6 Approval. The City shall be responsible for observation and final approval of the condition of the Right -of -Way and City property following any restoration activities therein. Franchisee is responsible for all testing and monitoring of restoration activities. 7.11.7 Warr Franchisee shall warrant any restoration work performed by Franchisee in the Right -of -Way or on other public property for one (1) year, unless a longer period is required by the Municipal Code or any generally applicable ordinance or resolution of the City. If restoration is not satisfactorily and timely performed by Franchisee, the City may, after prior written notice to Franchisee, or without notice in case of Emergency, cause the repairs to be made and recover the Direct Costs of those repairs from Franchisee. 7.11.8 Restoration of Private Property. When Franchisee does any Work in the Right -of -Way that affects, disturbs, alters, or damages any adjacent private property, it shall, at its own expense, be responsible for restoring such private property to the condition that existed prior to the Work to the reasonable satisfaction of the private property owner. 7.12 Approvals. Nothing in this Franchise shall be deemed to impose any duty or obligation upon the City to determine the adequacy or sufficiency of Franchisee's plans or to ascertain whether Franchisee's proposed or actual Construction is adequate or sufficient or in conformance with any plans approved by the City. No approval given, inspection made, review or supervision performed by the City pursuant to or under authority of this Franchise shall constitute or be construed as a representation or warranty, express or implied, by the City that such item reviewed, approved, inspected, or supervised complies with applicable Laws or this Franchise or meets any particular Standard, code or requirement, or is in conformance with the approved plans by the City, and no liability shall attach with respect thereto. City approvals and inspections as provided herein, are for the sole purpose of protecting the City's rights as the owner and/or manager of the Right -of -Way and shall not constitute any representation or warranty, express or implied, as to the adequacy of the design or Construction of the Telecommunication Facilities, suitability of the Franchise Area for Construction, or any 36. obligation on the part of the City to insure that Work or materials are in compliance with any requirements imposed by a governmental entity. City is under no obligation or duty to supervise the design, Construction, or operation of the Telecommunication Facilities. 7.13 Abandonment of Telecommunications Facilities. Franchisee's rights, duties and obligations to remove its unauthorized Telecommunications Facilities or abandon in place shall be as set forth in MMC Section 19.10.170 in Exhibit B. 7.14 Relationship to MMC. The provisions in this Article 7 supersede MMC Sections 19.10.050, 19.10.100, 19.10.110, 19.10.130, 19.10.150, 19.10.160, 19.10.180, 19.10.190, 19.10.200, 19.10.210, 19.12.010 (to the extent it incorporates MMC Sections 19.12.130 and 19.12.140), 19.12.130 and 19.12.140. ARTICLE 8 MISCELLANEOUS 8.1 Headinas. Titles to articles and sections of this Franchise are not a part of this Franchise and shall have no effect upon the construction or interpretation of any part hereof. 8.2. Entire Agreement. This Franchise contains all covenants and agreements between the City and Franchisee relating in any manner to the Franchise, use, and occupancy of the Right -of -Way and other matters set forth in this Franchise. No prior agreements or understanding pertaining to the same, written or oral, shall be valid or of any force or effect, and the covenants and agreement of this Franchise shall not be altered, modified, or added to except in writing signed by the City and Franchisee and approved by the City in the same manner as the original Franchise was approved. 8.3 Incorporation of Exhibits. All exhibits attached hereto at the time of execution of this Franchise, or in the future as contemplated herein, are hereby incorporated by reference as though fully set forth herein. 8.4 Calculation of Time. All periods of time referred to herein shall include Saturdays, Sundays, and legal holidays in the State of Washington, except that if the last day of any period falls on any Saturday, Sunday, or legal holiday in the State of Washington, the period shall be extended to include the next day which is not a Saturday, Sunday, or legal holiday in the State of Washington; provided that, the Effective Date shall be determined as provided at Section 4.3 of this Franchise. 8.5 Time Limits Strictly Construed. Whenever this Franchise sets forth a time for any act to be performed by either Party, such time shall be deemed to be of the essence, and any failure of either Party to perform within the allotted time may be considered a Breach of this Franchise. 8.6 No Joint Venture. It is not intended by this Franchise to, and nothing contained in this Franchise shall, create any partnership, joint venture, or principal -agent relationship or other arrangement between Franchisee and the City. Neither Party is 37. authorized to, nor shall either Parry act toward third Persons or the public, in any manner which would indicate any such relationship with the other. The Parties intend that the rights, obligations, and covenants in this Franchise and the collateral instruments shall be exclusively enforceable by the City and Franchisee, their successors, and assigns. No term or provision of this Franchise is intended to be, or shall be, for the benefit of any Person not a Party hereto, and no such Person shall have any right or cause of action hereunder, except as may be otherwise provided herein. Further, Franchisee is not granted any express or implied right or authority to assume or create any obligation or responsibility on behalf of or in the name of the City. Nothing in this Section 8.6 shall be construed to prevent an assignment as provided for at Section 7.7.6 of this Franchise. 8.7 Approval Authority. Except as may be otherwise provided by applicable Law or herein, any approval or authorization required to be given by the City, shall be given by the Public Works Director (or its successor). 8.8 Binding Effect Upon Successors and Assigns. All of the provisions, conditions, and requirements contained in this Franchise shall further be binding upon the heirs, successors, executors, administrators, receivers, trustees, legal representatives and assigns of Franchisee and the City; and all privileges, as well as all obligations and liabilities of Franchisee and the City shall inure to its heirs, successors, and assigns equally as if they were specifically mentioned wherever Franchisee is named herein. 8.9 Waiver. No failure by either Party to insist upon the performance of any of the terms of this Franchise, or to exercise any right or remedy consequent upon a Breach thereof, shall constitute a waiver of any such Breach or of any of the terms of this Franchise. None of the terms of this Franchise to be kept, observed or performed by either Party, and no Breach thereof, shall be waived, altered or modified except by a written instrument executed by the injured Party. No waiver of any Breach shall affect or alter this Franchise, but each of the terms of this Franchise shall continue in full force and effect with respect to any other then existing or subsequent Breach thereof. No waiver of any default of the defaulting Party hereunder shall be implied from any omission by the injured Party to take any action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the express waiver and then only for the time and to the extent therein stated. One or more waivers by the injured Party shall not be construed as a waiver of a subsequent breach of the same covenant, term or conditions. 8.10 Severability. If any word, article, section, subsection, paragraph, provision, condition, clause, sentence, or its application to any person or circumstance (collectively referred to as "Term"), shall be held to be illegal, invalid, or unconstitutional for any reason by any court or agency of competent jurisdiction, such Term declared illegal, invalid or unconstitutional shall be severable and the remaining Terms of the Franchise shall remain in full force and effect unless to do so would be inequitable or would result in a material change in the rights and obligations of the Parties hereunder, in which case the Parties shall reform the Franchise pursuant to Section 3.5 herein. 8.11 Signs. No signs or advertising shall be permitted in the Franchise Area except as may be required by applicable Law or as may be required by the City for the protection of the public health, safety and welfare, to the extent it has authority to do so. 8.12 Discriminatory Practices Prohibited. Throughout the term of this Franchise, Franchisee shall fully comply with all equal employment and nondiscrimination provisions of applicable Law. 8.13 Notice. Any notice required or permitted to be given hereunder shall be in writing, unless otherwise expressly permitted or required, and shall be deemed effective either: (i) upon hand delivery to the person then holding the office shown on the attention line of the address below, or, if such office is vacant or no longer exists, to a person holding a comparable office; (ii) or when delivered by a nationally recognized overnight mail delivery service, to the Party and at the address specified below; or (iii) on the third business day following its deposit with the United States Postal Service, first class and certified or registered mail, return receipt requested, postage prepaid, properly sealed and addressed as follows: Franchisee's address: The City's Address: And to the City Attorney ATC Outdoor DAS, LLC 10 Presidential Way Woburn, MA 01810 Attn: Land Management American Tower Corporation 116 Huntington Avenue Boston, MA 02116 Attn: General Counsel City of Medina Attn. City Manager 501 Evergreen Point Road Medina, WA 98039 City of Medina Attn. City Attorney 501 Evergreen Point Road Medina, WA 98039 The City and Franchisee may designate such other address from time to time by giving written notice to the other, . but notice cannot be required to more than two addresses, except by mutual agreement. 8.14 Survival of Terms. Upon the expiration, termination, revocation or forfeiture of the Franchise, Franchisee shall no longer have the right to occupy the Franchise Area for the purpose of providing services authorized herein. However, Franchisee's obligations under this Franchise to the City shall survive the expiration, termination, revocation or forfeiture of these rights according to its terms for so long as 39. Franchisee's Telecommunications Facilities or any part thereof shall remain in whole or in part in the Right -of -Way, Franchisee transfers ownership of all Telecommunications Facilities in the Franchise Area to a third -parry, or Franchisee abandons said Telecommunications Facilities in place, all as provided herein. Said obligations include, by way of illustration and not limitation, Franchisee's obligations to indemnify, defend, and protect the City, to provide insurance, to relocate its Facilities, and to reimburse the City for its Direct Costs to perform Franchisee Work. 8.15 Force Majeure. In the event Franchisee is prevented or delayed in the performance of any of its obligations herein due to circumstances beyond its control or by reason of a force majeure occurrence, such as, but not limited to, acts of God, acts of terrorism, war, riots, civil disturbances, natural disasters, floods, tornadoes, earthquakes, unusually severe weather conditions, employee strikes and unforeseen labor conditions not attributable to Franchisee's employees, Franchisee shall not be deemed in Breach of the provisions of this Franchise. If Franchisee believes that circumstances beyond its control or by reason of a force majeure occurrence have prevented or delayed its compliance with the provisions of this Franchise, Franchisee shall provide documentation as reasonably required by the City to substantiate Franchisee's claim. Franchisee shall have a reasonable time, under the circumstances, to perform the affected obligation under this Franchise or to procure a substitute for such obligation which is reasonably satisfactory to the City, provided that, Franchisee shall perform to the maximum extent it is able to perform and shall take immediate and diligent steps to bring itself back into compliance and to comply as soon as possible under the circumstances with the Franchise without unduly endangering the health, safety, and integrity of Franchisee's employees or property, or the health, safety, and integrity of the public, Right -of -Way, public property, or private property. 8.16 Attorneys' Fees. In the event a suit, action, arbitration, or other proceeding of any nature whatsoever, whether in contract or in tort or both, is instituted to enforce any word, article, section, subsection, paragraph, provision, condition, clause or sentence of this Franchise or its application to any person or circumstance, the prevailing Party shall be entitled to recover from the losing Parry its reasonable attorneys', paralegals', accountants', and other experts' fees, and all other fees, costs, and expenses actually incurred and reasonably necessary in connection therewith, as allowed by Washington Law and as determined by the judge or arbitrator at trial or arbitration, as the case may be, or on any appeal or review, in addition to all other amounts provided by Law. This provision shall cover costs and attorneys' fees related to or with respect to proceedings in Federal Bankruptcy Courts, including those related to issues unique to bankruptcy law. This provision shall not apply to the extent that the suit, action, arbitration or other proceeding is brought to interpret any term, condition, provision, section, article or clause of this Franchise. 8.17 Venue/Choice of Law. This Franchise shall be governed and construed in accordance with the laws of the State of Washington. Any action brought relative to enforcement of this Franchise, or seeking a declaration of rights, duties or obligations HO herein, shall be initiated in the King County Superior Court, and shall not be removed to a federal court, except as to claims over which such the Superior Court has no jurisdiction. Removal to federal court shall be to the Federal Court of the Western District of Washington. 8.18 Publication. This ordinance, or a summary thereof, shall be published in the official newspaper of the City, the expense of which shall be borne by Franchisee, and shall take effect and be in full force in accordance with Section 4.3 herein. ADOPTED BY THE CITY COUNCIL AT A REGULAR MEETING THEREOF ON THE _,_ DAY OF Jdmg6W, 20 tO AND SIGNED IN AUTHENTICATION OF ITS PASSAGE THIS DAY OF .t20—LV—. Appr rdasIoform: Bruce Disend, City Attomey Passed: It [orU- Published: O Eff Date: 1 Q 41. Attel, Ra t el Baker, City Clerk EXHIBIT A Map Depicting Franchise Area 42. Figure 1 CITY E�et9{egnt po+ MEDINA LEGEND Underground Fiber 1000' +/. venal river Koine 1 tuuu•+/- (y.sz miles) Node # 10 locations 1*04.4 1: Medina Municipal Code Title 19 43. Title 19 TELECOMMUNICATIONS Chapters: 19.02 General Provisions 19.04 Telecommunications Right -of -Way Use Authorizations 19.06 Telecommunications Franchise 19.07 Special Rules Applicable to Open Video Systems 19.08 Facilities Lease 19.10 Conditions of Telecommunications Right -of -Way Use Authorizations, Franchises, and Facilities Leases 19.12 Construction Standards 19-1 Medina Municipal Code 19.02.020 Chapter 19.02 GENERAL PROVISIONS Sections: 19.02.010 Purpose and intent. 19.02.020 Definitions. 19.02.030 Telecommunications right-of-way use authorization required. 19.02.040 Telecommunications franchise required. 19.02.050 Cable television franchise required. 19.02.060 Facilities lease required. 19.02.070 Construction permits required. 19.02.080 Application to existing franchise ordinances, agreements, leases, and permits — Effect of other laws. 19.02.090 Universal service. 19.02.100 General penalties. 19.02.110 Initial inquiry/responsibilities. 19.02.120 Other remedies. 19.02.130 Fees and compensation not a tax. 19.02.010 Purpose and intent. The purpose and intent of this title is to: A. Establish a local policy concerning telecom- munications providers and service; B. Establish guidelines, standards and time frames for the exercise of local authority with respect to the regulation of telecommunications providers and services; C. Promote competition in telecommunica- tions; D. Minimize unnecessary local regulation of telecommunications providers and services; E. Encourage the provision of advanced and competitive telecommunications services on the widest possible basis to the businesses, institutions and residents of the city and the region; F. Permit and manage reasonable access to the rights -of -way of the city for telecommunications purposes on a competitively neutral basis; G. Conserve the limited physical capacity of the rights -of -way of the city; H. Assure that the city's current and ongoing costs of granting and regulating private access to and use of the rights -of -way are fully paid by the persons seeking such access and causing such costs; I. Secure fair and reasonable compensation to the city for permitting private use of the rights -of - way; J. Assure that all telecommunications carriers providing facilities or services within the city com- 19-3 ply with the ordinances, rules and regulations of the city; and K. Enable the city to discharge its public trust consistent with rapidly evolving federal and state regulatory policies, industry competition and tech- nological development. (Ord. 692 § 1, 2001) 19.02.020 Definitions. The following words and phrases shall have the following meanings, unless the context of the sen- tence in which they are used shall indicate other- wise: "Affiliate" means a person who (directly or indi- rectly) owns or controls, is owned or controlled by, or is under common ownership or control with another person; "Applicant" means any person or entity that applies for any authorization, franchise, lease, or permit pursuant to this title; "Cable Act" means the Cable Communications Policy Act of 1984 and the Cable Television Con- sumer Protection and Competition Act of 1992; "Cable facilities" means equipment and wiring used to transmit audio and video signals to sub- scribers; "Cable operator" means a telecommunications carrier providing or offering to provide "cable ser- vice" within the city as that term is defined in the Cable Act; "Cable service," for the purpose of this title, shall have the same meaning provided by the Cable Act; "Cable system" means a facility, consisting of a set of closed transmission paths and associated sig- nal generation, reception, and control equipment that is designed to provide cable service and other service to subscribers; "City" means the city of Medina, Washington; "City property" means and includes all real property owned by the city, other than public streets and utility easements as those terms are defined herein, and all property held in a propri- etary capacity by the city, which are not subject to right-of-way licensing and franchising; "Council" means the city council of the city of Medina, Washington acting in its official capacity; "Data communication" means: 1. The transmission of encoded information, or 2. The transmission of data from one point to another; "Emergency" means a condition of imminent danger to the health, safety, and welfare of prop- erty or persons located within the city including, 19.02.020 without limitation, damage to persons or property from natural consequences, such as storms, earth- quakes, riots or wars; "Excess capacity" means the volume or capacity in any existing or future duct, conduit, manhole, handhole or other utility facility within the public way that is or will be available for use for addi- tional telecommunications facilities; "FCC" or "Federal Communications Commis- sion" means the federal administrative agency, or lawful successor, authorized to regulate and over- see telecommunications carriers, services and pro- viders on a national level; "Fiber optics" means the technology of guiding and projecting light for use as a communications medium; "Franchise" shall mean the initial authorization, or renewal thereof, approved by an ordinance of the city, which authorizes the franchisee to con- struct, install, operate, or maintain telecommunica- tions facilities in, under, over, or across rights -of - way of the city and to also provide telecommunica- tions service to persons or areas in the city; "Franchisee" means the person, firm or corpora- tion to whom or which a franchise, as defined in this section, is granted by the council under this title and the lawful successor, transferee or assignee of said person, furn or corporation subject to such conditions as may be defined in this title•, "Open video system" or "OVS" refers to a facil- ity consisting of a set of transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable ser- vice, which is provided to multiple subscribers within a community, and which the Federal Com- munications Commission or its successors has cer- tified as compliant with Part 76 of its rules, 47 C.F.R., Part 76, as amended from time -to -time; "Operator" means the person, firm or corpora- tion to whom a franchise is granted pursuant to the provisions of this title; "Overhead facilities" means utility poles, utility facilities and telecommunications facilities located above the surface of the ground, including the underground supports and foundations for such facilities; "Person" means and includes corporations, companies, associations, joint stock companies or associations, firms, partnerships, limited liability companies and individuals and includes their les- sors, trustees and receivers; "Property of franchisee" means all property owned, installed or used by a franchisee in the con- 19-4 duct of its business in the city under the authority of a franchise granted pursuant to this title; "Proposal" means the response, by an individual or organization, to a request by the city regarding the provision of cable services; or an unsolicited plan submitted by an individual or organization seeking to provide cable services in the city; "Right-of-way" means land acquired or dedi- cated for public roads and streets, but does not include state highways or land dedicated for roads, streets and highways not opened and not improved for motor vehicle use by the public; "State" means the state of Washington; "Surplus space" means that portion of the usable space on a utility pole which has. the necessary clearance from other pole users, as required by the federal or state orders and regulations, to allow its use by a telecommunications carrier for a pole attachment; "Telecommunications carrier" means and includes every person that directly or indirectly owns, controls, operates or manages plant, equip- ment or property within the city, used or to be used for the purpose of offering telecommunications service; "Telecommunications facilities" means the plant, equipment and property, including but not limited to, cables, wires, conduits, ducts, pedestals, antennas, electronics and other appurtenances used or to be used to transmit, receive, distribute, pro- vide or offer telecommunications services; "Telecommunications provider" means and includes every person who provides telecommuni- cations services over telecommunications facilities without any ownership or management control of the facilities; "Telecommunications service" means the pro- viding or offering for rent, sale or lease, or in exchange for other value received, of the transmit- tal of voice, data, image, graphic and video pro- gramming information between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or similar facilities, with or without benefit of any closed transmission medium; "Telecommunications system" see "telecom- munications facilities"; "Underground facilities" means utility and tele- communications facilities located under the sur- face of the ground, excluding the underground foundations or supports for overhead facilities; "Universal service" means a level of and defini- tion of telecommunications services as the term is defined by the FCC through its authority granted pursuant to Section 254 of the Act; Medina Municipal Code "Usable space" means the total distance between the top of a utility pole and the lowest pos- sible attachment point that provides the minimum allowable vertical clearance as specified in any federal or state orders and regulations; "Utility facilities" means the plant, equipment and property, including but not limited to the poles, pipes, mains, conduits, ducts, cables, wires, plant and equipment located under, on or above the sur- face of the ground within the rights -of -way of the city and used or to be used for the purpose of pro- viding utility or telecommunications services. (Ord. 692 § 1, 2001) 19.02.030 Telecommunications right-of-way use authorization required. Except as otherwise provided herein, any tele- communications carrier who desires to construct, install, operate, maintain, or otherwise locate tele- communications facilities in, under, over or across any public way of the city for the sole purpose of providing telecommunications service to persons and areas outside the city shall first obtain a tele- communications right-of-way use authorization granting the use of such rights -of -way from the city pursuant to Chapter 19.04 MMC. (Ord. 692 § 1, 2001) 19.02.040 Telecommunications franchise required. Except as otherwise provided herein, any tele- communications carrier who desires to construct, install, operate, maintain or otherwise locate tele- communications facilities in, under, over or across any public way of the city, and to also provide tele- communications service to persons or areas in the city, shall first obtain a telecommunications fran- chise granting the use of such rights -of -way from the city pursuant to Chapter 19.06 MMC. (Ord. 692 § 1, 2001) 19.02.050 Cable television franchise required. Except as otherwise provided herein, any tele- communications carrier or other person who desires to construct, install, operate, maintain or locate cable or telecommunications facilities in any public way in the city for the purpose of providing cable service to persons in the city shall first obtain a cable franchise from the city. Said franchises shall be negotiated on a case -by -case basis taking into account the terms and provisions of existing such franchises and the requirements of the Cable Acts of 1984 and 1992; provided, however, unless otherwise authorized or exempted by the terms of 19-5 19.02.090 an unexpired franchise, lease or agreement, cable service operators shall comply with the relevant provisions of Chapters 19.10 and 19.12 MMC. (Ord. 692 § 1, 2001) 19.02.060 Facilities lease required. No telecommunications carrier or other entity who desires to locate telecommunications or other equipment on city property shall locate such facil- ities or equipment on city property unless granted a facilities lease from the city pursuant to Chapter 19.08 MMC. The city council reserves unto itself the sole discretion to lease city property for tele- communications and other facilities, and no vested or other right shall be created by any provision of this title. (Ord. 692 § 1, 2001) 19.02.070 Construction permits required. Except as otherwise provided herein, the holder of an authorization, franchise, or lease granted pur- suant to this title, and the holders of cable fran- chises granted by the city, and telecommunication providers claiming to have a state-wide grant to oc- cupy the rights -of -way, shall, in addition to said au- thorization, franchise, or lease, be required to obtain a construction permit from the city pursuant to Chapter 19.12 MMC. No work, construction, de- velopment, excavation, or installation of any equip- ment or facilities shall take place within the rights - of -way or upon city property until such time as the construction permit is issued. (Ord. 692 § 1, 2001) 19.02.080 Application to existing franchise ordinances, agreements, leases, and permits — Effect of other laws. A. These provisions shall have no effect on any existing franchise ordinance, franchise agreement, lease, permit, or other authorization to use or occupy a public way in the city until: 1. The expiration of said franchise ordinance, agreement, lease, permit, or authorization; or 2. An amendment to an unexpired franchise ordinance, franchise agreement, lease, permit, or authorization that has been approved, unless both parties agree to defer full compliance to a specific date not later than the present expiration date. B. Nothing in these provisions shall be deemed to create an obligation upon any person for which the city is forbidden to require pursuant to federal, state, or other law. (Ord. 692 § 1, 2001) 19.02.090 Universal service. Except as otherwise provided herein, all cable operators, telecommunications carriers, and tele- 19.02.100 communications providers engaged in the business of transmitting, supplying or furnishing telecom- munications service of any kind originating or ter- minating in the city are subject to the city's right, which is expressly reserved, to require said opera- tor, carrier, or provider to make an equitable and nondiscriminatory contribution to the preservation and advancement of universal service to the extent permitted by state and federal law. (Ord. 692 § 1, 2001) 19.02.100 General penalties. A. Civil Penalty. 1. Any person, and the officers, directors, managing agents, or partners of any corporation, firm, partnership or other organization or business violating or failing to comply with any of the pro- visions of this title shall be subject to a penalty in an amount not less than $100.00 nor more than $1,000 per day for each violation from the date set for compliance until compliance with the order is achieved. 2. In addition to any penalty which may be imposed by the city, any person violating or failing to comply with any of the provisions of this title shall be liable for all damage to public or private property arising from such violation, including the cost of restoring the affected area in accordance with the city's development guidelines. 3. The penalty imposed by this section shall be collected by civil action brought by the city attorney. B. Criminal Penalty. Any person, and the offic- ers, directors, managing agents, or partners of any corporation, firm, partnership or other organization or business violating or failing to comply with any of the applicable provisions of this title shall be subject to criminal prosecution and upon convic- tion of such violation shall be fined in a sum not exceeding $5,000 or be imprisoned for a term not exceeding one year or be both fined and impris- oned. Each day of noncompliance with any of the applicable provisions of the title shall constitute a separate offense. C. Additional Relief. The city may seek legal or equitable relief to enjoin any acts or practices and abate any condition which constitutes or will con- stitute a violation of the applicable provisions of this title when civil or criminal penalties are inade- quate to effect compliance. In addition to the pen- alties set forth in this section, violation of the terms of this title may also result in the revocation of any authorization, franchise, approval, lease, or permit 19-6 issued or granted hereunder, as set forth in this title. (Ord. 692 § 1, 2001) 19.02.110 Initial inquiry/responsibilities. Initial inquiries regarding cable television and telecommunications franchises, telecommunica- tions right-of-way authorizations or facilities leases shall be directed to the city manager or designee for determination of which type or types of agreements and permits are required. The city manager or des- ignee shall have lead responsibility for negotiating authorizations, franchises and leases. (Ord. 692 § 1, 2001) 19.02.120 Other remedies. Nothing in this chapter shall be construed as limiting any judicial remedies that the city may have, at law or in equity, for enforcement of this title. (Ord. 692 § 1, 2001) 19.02.130 Fees and compensation not a tag. The fees, charges and fines provided for in this title and any compensation charged and paid for the rights -of -way provided for herein, whether financial or in -kind, are separate from, and addi- tional to, any and all federal, state, local, and city taxes as may be levied, imposed or due from a tele- communications carrier or provider, its customers or subscribers or on account of the lease, sale, delivery or transmission of telecommunications services. (Ord. 692 § 1, 2001) Medina Municipal Code 19.04.020 Chapter 19.04 TELECOMMUNICATIONS RIGHT-OF- WAY USE AUTHORIZATIONS Sections: 19.04.010 Telecommunications right-of-way use authorization. 19.04.020 Telecommunications right-of-way use authorization application. 19.04.030 Issuance/denial of telecommunications right-of-way use authorization. 19.04.040 Appeal of city manager's decision. 19.04.050 Agreement. 19.04.060 Nonexclusive grant. 19.04.070 Rights granted. 19.04.080 Term of telecommunications right-of- way use authorization. 19.04.090 Specified route. 19.04.100 Service to city users. 19.04.110 Compensation to the city. 19.04.120 Amendment of authorization. 19.04.130 Renewal of telecommunications right- of-way use authorization. 19.04.140 Standards for renewal of authorization. 19.04.150 Obligation to cure as a condition of renewal. 19.04.160 Universal service. 19.04.170 Annual fee for recovery of city costs. 19.04.180 Other city costs. 19.04.010 Telecommunications right-of-way use authorization. A telecommunications right-of-way use authori- zation shall be required of any telecommunications carrier or provider who desires to occupy specific rights -of -way of the city for the sole purpose of providing telecommunications services to persons or areas outside the city. (Ord. 692 § 2, 2001) 19.04.020 Telecommunications right-of-way use authorization application. Any person that desires a telecommunications right-of-way use authorization pursuant to this chapter shall file an application with the city clerk which shall include the following information: A. The name of the applicant, including all affiliates of the applicant; B. A description of the telecommunications services that are or will be offered or provided by the applicant over its telecommunications facili- ties; 19-7 C. A description of the transmission medium that will be used by the applicant to offer or pro- vide such telecommunications services; D. Preliminary engineering plans, specifica- tions and a network map of the facilities to be lo- cated within the city, all in sufficient detail to identify: 1. The location and route requested for appli- cant's proposed telecommunications facilities; 2. The location of all overhead and under- ground public utility, telecommunication, cable, water, sewer drainage and other facilities in the public way along the proposed route; 3. The location(s), if any, for interconnection with the telecommunications facilities of other telecommunications carriers; and 4. The specific trees, structures, improve- ments, facilities and obstructions, if any, that appli- cant proposes to temporarily or permanently remove or relocate; E. If applicant is proposing to install overhead facilities, evidence that surplus space is available for locating its telecommunications facilities on existing utility poles along the proposed route; F. If applicant is proposing an underground installation in existing ducts or conduits within the rights -of -way, information in sufficient detail to identify: 1. The excess capacity currently available in such ducts or conduits before installation of appli- cant's telecommunications facilities; 2. The excess capacity, if any, that will exist in such ducts or conduits after installation of appli- cant's telecommunications facilities; and 3. Evidence of ownership or a right to use such ducts or conduits; G. If applicant is proposing an underground installation within new ducts or conduits to be con- structed within the rights -of -way: 1. The location proposed for the new ducts or conduits; and 2. The excess capacity that will exist in such ducts or conduits after installation of applicant's telecommunications facilities; H. A preliminary construction schedule and completion date; I. Information to establish that the applicant has obtained all other governmental approvals and per- mits to construct and operate the facilities, and to offer or provide the telecommunications services, including, but not limited to, evidence that the applicant has registered with the Washington Util- ities and Transportation Commission or is not required to so register; 19.04.030 J. All deposits or charges required pursuant to this chapter; and K. An application fee which shall be set by the city council by resolution. (Ord. 692 § 2, 2001) 19.04.030 Issuance/denial of telecommunications right-of-way use authorization. Within 120 days after receiving a complete application, the city manager or designee shall issue a written determination granting or denying the authorization in whole or in part. The 120-day limitation may be waived by the applicant and shall not apply if action by the city council is requested. If the authorization is denied, the written determi- nation shall include the reason(s) for denial. The decision to grant or deny an application for a tele- communications right-of-way use authorization shall be based upon the following standards: A. Whether the applicant has received all requi- site licenses, certificates, and authorizations from the Federal Communications Commission, the Washington Utilities and Transportation Commis- sion, and any other federal or state agency with jurisdiction over the activities proposed by the applicant; B. The capacity of the rights -of -way to accom- modate the applicant's proposed facilities; C. The capacity of the rights -of -way to accom- modate additional utility, cable, and telecommuni- cations facilities if the authorization is granted; D. The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the authorization is granted and efforts proposed to mitigate such damages or dis- ruption; E. The public interest in minimizing the cost and disruption of construction within the rights -of - way; F. Applicant's proposed compliance with the city's development guidelines; G. The effect, if any, on public health, safety and welfare if the authorization is granted; H. The availability of alternate routes and/or locations for the proposed facilities; I. Such other factors as may demonstrate that the grant to use the rights -of -way will or will not serve the community interest. (Ord. 692 § 2, 2001) 19.04.040 Appeal of city manager's decision. Any person aggrieved by the granting or deny- ing of a telecommunications right-of-way authori- zation or the renewal thereof pursuant to this 19-8 chapter shall have the right to appeal to the board of adjustment as,follows: A. All appeals filed pursuant to this section must be filed in writing with the city clerk within 10 days of the date of the decision appealed from; B. All appeals filed pursuant to this section shall specify the error of law or fact, or new evi- dence which could not have been reasonably avail- able at the time of the city manager's decision, which shall constitute the basis of the appeal; C. Unless substantial relevant information is presented which was not considered by the city manager, such decision shall be accorded substan- tial weight, but may be reversed or modified by the board of adjustment if, after considering all of the evidence in light of the applicable goals, policies, and provisions of this title, the board of adjustment determines that a mistake has been made. Where substantial new relevant information which was not considered in the making of the decision appealed from has been presented, the board of adjustment shall make its decision only upon the basis of the facts presented at the hearing of the appeal, or may elect to remand the matter for reconsideration by the city manager in light of the additional information. (Ord. 692 § 2, 2001) 19.04.050 Agreement. No authorization shall be deemed to have been granted hereunder until the applicant and the city have executed a written agreement setting forth the particular terms and provisions under which the grantee has been granted the right to occupy and use rights -of -way of the city. (Ord. 692 § 2, 2001) 19.04.060 Nonexclusive grant. No authorization granted under this chapter shall confer any exclusive right, privilege, license or franchise to occupy or use the rights -of -way of the city for delivery of telecommunications ser- vices or any other purposes. (Ord. 692 § 2, 2001) 19.04.070 Rights granted. No authorization granted under this chapter shall convey any right, title or interest in the rights - of -way, but shall be deemed an authorization only to use and occupy the rights -of -way for the limited purposes and term stated in the authorization. Fur- ther, no authorization shall be construed as any warranty of title. (Ord. 692 § 2, 2001) Medina Municipal Code 19.04.170 19.04.080 Term of telecommunications right- of-way use authorization. Unless otherwise specified in an authorization, no authorization granted hereunder shall be in effect for a term exceeding five years. (Ord. 692 § 2, 2001) 19.04.090 Specified route. A telecommunications right-of-way use authori- zation granted under this chapter shall be limited to a grant for use of specific rights -of -way and defined portions thereof. (Ord. 692 § 2, 2001) 19.04.100 Service to city users. A grantee shall be permitted to offer or provide telecommunications services to persons or areas within the city upon approval of an application for a telecommunications franchise pursuant to Chap- ter 19.06 MMC. (Ord. 692 § 2, 2001) 19.04.110 Compensation to the city. Each authorization granted pursuant to this chapter is subject to the city's right under the 1996 Federal Telecommunications Act, which is ex- pressly reserved, to annually fix a fair and reason- able compensation to be paid for the right to occupy and use the rights -of -way of the city granted under such authorization; provided, that nothing in this chapter shall prohibit the city and a grantee from agreeing to the compensation to be paid; provided further, that the compensation required from any telecommunications provider shall be consistent with state law. (Ord. 692 § 2, 2001) 19.04.120 Amendment of authorization. A new application shall be required of any tele- communications carrier or provider who desires to extend or locate its telecommunications facilities in rights -of -way of the city which are not included in an authorization previously granted under this title. If ordered by the city to locate or relocate its telecommunications facilities in rights -of -way not included in a previously granted authorization, the city shall grant an amendment to the authorization without further application. (Ord. 692 § 2, 2001) 19.04.130 Renewal of telecommunications right-of-way use authorization. A grantee that desires to renew its authorization under this chapter for an additional term shall, not more than 180 days nor less than 90 days before expiration of the current authorization, file an application with the city for renewal which shall include the following: 19-9 A. The information required pursuant to MMC 19.04.020; B. Any information required pursuant to the authorization agreement between the city and the grantee; C. All deposits or charges required pursuant to this chapter; and D. An application fee which shall be set by the city council by resolution. (Ord. 692 § 2, 2001) 19.04.140 Standards for renewal of authorization. Within 90 days after receiving a complete appli- cation for renewal, the city manager or designee shall issue a written determination granting or denying the renewal application in whole or in part. If the renewal application is denied, the written determination shall include the reason(s) for denial. The decision to grant or deny an application for the renewal of a telecommunications right-of- way use authorization shall, in addition to the stan- dards set forth in MMC 19.04.030, be based upon the following standards: A. The continuing capacity of the rights -of -way to accommodate the applicant's existing facilities; and B. The applicant's compliance with the require- ments of this title and the authorization. (Ord. 692 § 2, 2001) 19.04.150 Obligation to cure as a condition of renewal. No authorization shall be renewed until any ongoing violations or defaults in the grantee's per- formance under the authorization, or of the require- ments of this title, have been cured, or a plan detailing the corrective action to be taken by the grantee has been approved by the city manager. (Ord. 692 § 2, 2001) 19.04.160 Universal service. Each telecommunications right-of-way use authorization granted under this chapter is subject to the city's right, which is expressly reserved, to require the telecommunication carrier or provider to make an equitable and nondiscriminatory contri- bution to the preservation and advancement of uni- versal service to the extent permitted by state and federal law. (Ord. 692 § 2, 2001) 19.04.170 Annual fee for recovery of city costs. Each authorization granted under this chapter is subject to the city's right, which is expressly reserved, to annually fix a fair and reasonable com- 19.04.180 pensation to be paid as reimbursement for the city's costs in connection with reviewing, inspect- ing and supervising the use and occupancy of the rights -of -way on behalf of the public and existing or future users. (Ord. 692 § 2, 2001) 19.04.180 Other city costs. All grantees shall, within 30 days after written demand, reimburse the city for all direct and indi- rect costs, expenses and consultant fees incurred by the city in connection with any modification, amendment, renewal or transfer of the authoriza- tion or any authorization agreement. In addition, all grantees shall, within 30 days after written demand, reimburse the city for any and all costs the city rea- sonably incurs in response to any emergency in- volving the grantee's telecommunications facili- ties. All grantees shall, within 30 days after written demand, reimburse the city for the grantee's pro- portionate share of all actual, identified expenses incurred by the city in planning, constructing, in- stalling, repairing or altering any city facility as a result of the construction or the presence in the right-of-way of the grantee's telecommunications facilities. (Ord. 692 § 2, 2001) 19-10 Chapter 19.06 TELECOMMUNICATIONS FRANCHISE Sections: 19.06.010 Telecommunications franchise. 19.06.020 Franchise application. 19.06.030 Determination by the city. 19.06.040 Agreement. 19.06.050 Nonexclusive grant. 19.06.060 Term of franchise grant. 19.06.070 Rights granted. 19.06.080 Franchise territory. 19.06.090 Compensation to the city. 19.06.100 Nondiscrimination. 19.06.110 Amendment of franchise grant. 19.06.120 Renewal application. 19.06.130 Renewal determination. 19.06.140 Obligation to cure as a condition of renewal. 19.06.150 Universal service. 19.06.160 Annual fee for recovery of city costs. 19.06.170 Other city costs. 19.06.010 Telecommunications franchise. A telecommunications franchise shall be required of any telecommunications provider or carrier or other person who currently occupies or desires in the future to occupy rights -of -way of the city and to provide telecommunications services to any person or area in the city; provided, however, that no franchise shall be required for de minimis uses of rights -of -way made in conjunction with the placement of a wireless telecommunications facil- ity. (Ord. 692 § 3, 2001) 19.06.020 Franchise application. Any person who desires a telecommunications franchise pursuant to this chapter shall file an application with the city clerk which, in addition to the information required by MMC 19.04.020, shall include the following: A. Whether the applicant intends to provide ca- ble service, video dialtone service, other video pro- gramming service or telecommunication services, and sufficient information to determine whether such service is subject to cable franchising; B. An accurate map showing the location of any existing telecommunications facilities in the city that applicant intends to use or lease; C. A description of the services or facilities that the applicant will offer or make available to the city and other public, educational and governmental institutions; Medina Municipal Code D. A description of applicant's access and line extension policies; E. The area or areas of the city the applicant desires to serve and a schedule for build -out to the entire franchise area; F. All fees, deposits or charges required pursu- ant to this chapter; G. Such other and further information as may be requested by the city; and H. An application fee which shall be set by the city council by resolution. (Ord. 692 § 3, 2001) 19.06.030 Determination by the city. Within 120 days after receiving a complete application under MMC 19.06.020, unless addi- tional time is reasonably necessary for action by the city council, the city shall issue a written deter- mination granting or denying the application in whole or in part. Prior to granting or denying a franchise under this chapter, the city council shall conduct a public hearing and make a decision based upon the standards set forth below. Pursuant to RCW 35A.47.040, the city council shall not approve any franchise hereunder until the next reg- ularly scheduled council meeting following the public hearing. If the application is denied, a writ- ten determination shall be included setting forth the reason for denial: A. Whether the applicant has received all requi- site licenses, certificates, and authorizations from the Federal Communications Commission, the Washington Utilities and Transportation Commis- sion, and any other federal or state agency with ju- risdiction over the activities proposed by the applicant; B. The capacity of the rights -of -way to accom- modate the applicant's proposed facilities; C. The capacity of the rights -of -way to accom- modate additional utility and telecommunications facilities if the franchise is granted; D. The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the franchise is granted; E. The public interest in minimizing the cost and disruption of construction within the rights -of - way; F. Applicant's proposed compliance with all applicable development guidelines; G. The effect, if any, on public health, safety and welfare if the franchise requested is granted; H. The availability of alternate routes and/or locations for the proposed facilities; 19.06.090 I. Such other factors as may demonstrate that the grant to use the rights -of -way will or will not serve the community interest. (Ord. 692 § 3, 2001) 19.06.040 Agreement. No telecommunications franchise shall be deemed to have been granted hereunder until the applicant and the city have executed a written fran- chise agreement setting forth the particular terms and provisions under which the franchisee has been granted the right to occupy and use rights -of -way of the city. If the city determines it is in the public interest, the city and a franchisee may enter into an agreement that differs from one or more specific provisions of this chapter. (Ord. 692 § 3, 2001) 19.06.050 Nonexclusive grant. No franchise granted under this chapter shall confer any exclusive right, privilege, license or franchise to occupy or use the rights -of -way of the city for delivery of telecommunications services or any other purposes. (Ord. 692 § 3, 2001) 19.06.060 Term of franchise grant. Unless otherwise specified in a franchise agree- ment, a telecommunications franchise granted hereunder shall be valid for a term of five years. (Ord. 692 § 3, 2001) 19.06.070 Rights granted. No franchise granted under this chapter shall convey any right, title or interest in the rights -of - way, but shall be deemed a franchise only to use and occupy the rights -of -way for the limited pur- poses and term stated in the grant. Further, no fran- chise shall be construed as any warranty of title. (Ord. 692 § 3, 2001) 19.06.080 Franchise territory. Unless otherwise provided in the franchise agreement, a telecommunications franchise grant- ed under this chapter shall be limited to the specific geographic area of the city to be served by the fran- chisee, and the specific rights -of -way necessary to serve such areas. (Ord. 692 § 3, 2001) 19.06.090 Compensation to the city. Each franchise granted under this chapter is sub- ject to the city's right under the 1996 Telecommu- nications Act, which is expressly reserved, to annually fix a fair and reasonable compensation to be paid for the franchise rights granted to the fran- chisee; provided, that nothing in this chapter shall prohibit the city and a franchisee from agreeing to 19.06.100 the compensation to be paid; provided, further, that the compensation required from any telecommuni- cations provider or carrier shall be consistent with state law. (Ord. 692 § 3, 2001) 19.06.100 Nondiscrimination. A franchisee which purports to serve the general public shall make its telecommunications services available to any customer within its franchise area who shall request such service, without discrimina- tion as to the terms, conditions, rates or charges for the franchisee's services; provided, however, that nothing in this title shall prohibit a franchisee from making any reasonable classifications among dif- ferently situated customers. (Ord. 692 § 3, 2001) 19.06.110 Amendment of franchise grant. Except as otherwise provided within a franchise agreement, a new franchise application and grant shall be required of any telecommunications car- rier or provider that desires to extend its franchise territory or to locate its telecommunications facili- ties in rights -of -way of the city which are not included in a franchise previously granted under this chapter. If ordered by the city to locate or relo- cate its telecommunications facilities in rights -of - way not included in a previously granted franchise, the city shall grant a franchise amendment without further application. (Ord. 692 § 3, 2001) 19.06.120 Renewal application. A franchisee that desires to renew its franchise under this chapter for an additional term shall, not more than 180 days nor less than 120 days before expiration of the current franchise, file an applica- tion with the city for renewal of its franchise which shall include the following: A. The information required pursuant to MMC 19.06.020; B. Any information required pursuant to the franchise agreement between the city and the grantee; C. All deposits or charges required pursuant to this chapter; and D. An application fee which shall be set by the city council by resolution. (Ord. 692 § 3, 2001) 19.06.130 Renewal determination. Within 120 days after receiving a complete application for renewal under MMC 19.06.120, unless additional time is reasonably necessary for action by the city council, the city shall issue a written determination granting or denying the renewal application in whole or in part. Prior to 19-12 granting or denying renewal of a franchise under this chapter, the city council shall conduct a public hearing and make a decision based upon the stan- dards set forth below. If the renewal application is denied, the written determination shall include the reasons for nonrenewal. A. The continuing capacity of the rights -of -way to accommodate the applicant's existing facilities. B. The applicant's compliance with the require- ments of this chapter and the franchise agreement. C. Applicable federal, state and local telecom- munications laws, rules and policies. D. Such other factors as may demonstrate that the continued grant to use the rights -of -way will or will not serve the community interest. (Ord. 692 § 3, 2001) 19.06.140 Obligation to cure as a condition of renewal. No franchise shall be renewed until any ongoing violations or defaults in the franchisee's perfor- mance of the franchise agreement, or of the requirements of this title, have been cured, or a plan detailing the corrective action to be taken by the franchisee has been approved by the city. (Ord. 692 § 3, 2001) 19.06.150 Universal service. Each franchise granted under this chapter is sub- ject to the city's right under the 1996 Telecommu- nications Act, which is expressly reserved, to require the franchisee to make an equitable and nondiscriminatory contribution to the preservation and advancement of universal service to the extent permitted by state and federal law. (Ord. 692 § 3, 2001) 19.06.160 Annual fee for recovery of city costs. Subject to the 1996 Telecommunications Act, each franchise granted under this chapter is subject to the city's right, which is expressly reserved, to annually fix a fair and reasonable compensation to be paid as reimbursement for the city's costs in connection with reviewing, inspecting and super- vising the use and occupancy of the rights -of -way on behalf of the public and existing or future users. (Ord. 692 § 3, 2001) 19.06.170 Other city costs. All franchisees shall, within 30 days after written demand, reimburse the city for all direct and indi- rect costs, expenses and consulting fees incurred by the city in connection with any modification, amendment, renewal or transfer of the franchise or Medina Municipal Code 19.07.020 any franchise agreement. In addition, all franchi- sees shall, within 30 days after written demand, re- imburse the city for any and all costs the city reasonably incurs in response to any emergency in- volving the franchisee's telecommunications facil- ities. Finally, all franchisees shall, within 30 days after written demand, reimburse this city for the franchisee's proportionate share of all actual, iden- tified expenses incurred by the city in planning, constructing, installing, repairing or altering any city facility as a result of the presence in the right- of-way of the franchisee's telecommunications fa- cilities. (Ord. 692 § 3, 2001) 19-13 Chapter 19.07 SPECIAL RULES APPLICABLE TO OPEN VIDEO SYSTEMS Sections: 19.07.010 Open video systems franchise required. 19.07.020 Open video system franchise — Contents of application for initial or renewal franchise. 19.07.030 Applications for transfer. 19.07.040 City review. 19.07.050 Compensation. 19.07.060 Annual reports. 19.07.010 Open video systems franchise required. No person, partnership, corporation or other entity shall offer open video system programming or operate an open video system as defined in MMC 19.02.020 without first obtaining a franchise from the city of Medina. (Ord. 692 § 4, 2001) 19.07.020 Open video system franchise — Contents of application for initial or renewal franchise. In order to obtain an initial or renewal franchise, an operator of an open video system must apply for a franchise. The application must contain the fol- lowing information, and such information as the city may from time to time require: A. Identity of the applicant; the persons who exercise working control over the applicant; and the persons who control those persons, to the ulti- mate parent. B. A proposal for construction of the open video system that includes at least the following: 1. A description of the services that are to be provided over the facility; 2. Identification of the area of the city to be served by the proposed system, including a description of the proposed franchise area bound- aries; 3. The location of the proposed facility and facility design, including a description of the miles of plant to be installed, and a description of the size of equipment cabinets, shielding and electronics that will be installed along the plant route, the power sources that will be used and a description of the noise, exhaust and pollutants, if any, that will be generated by the operation of the same; 4. A map of the route the facility will follow; a description of the portions of the system that will 19.07.030 be placed aboveground and the portions that will be placed underground, and the construction tech- niques that the operator proposes to use in install- ing the system aboveground and underground; a schedule for construction of the facility, describing when and where construction will begin, how it will proceed, and when it will be completed; and the expected effect on right-of-way usage, includ- ing information on the ability of the public rights - of -way to accommodate the proposed system, including, as appropriate given the system pro- posed, an estimate of the availability of space in conduits and an estimate of the cost of any neces- sary rearrangement of existing facilities; 5. A description, where appropriate, of how services will be converted from existing facilities to new facilities, and what will be done with exist- ing facilities; 6. Evidence satisfactory to the city that the applicant has the financial resources to complete the proposed project, and to construct, operate and repair the proposed facility over the franchise term. It is not the intent of the city to require an applicant to prove that the services it proposes to offer will succeed in the marketplace; 7. Evidence satisfactory to the city that applicant is technically qualified to construct, operate and repair the proposed facility. At a mini- mum, the applicant must show that it has experi- ence or resources to ensure that work is to be performed adequately, and can respond to emer- gencies during and after construction is complete; 8. Evidence satisfactory to the city that the applicant is legally qualified, which proof must include a demonstration that the applicant: a. Has received, or is in a position to receive, necessary authorizations from state and federal authorities; b. Has not engaged in conduct (fraud, racketeering, violation of antitrust laws, consumer protection laws, or similar laws) that allows the city to conclude the applicant cannot be relied upon to comply with requirements of franchise, or provi- sions of this title; c. Is willing to enter into a franchise, to pay required compensation and to abide by the pro- visions of applicable law, including those relating to the construction, operation or maintenance of its facilities, and has not entered into any agreement that would prevent it from doing so; 9. An affidavit or declaration of the applicant or authorized officer thereof certifying the truth and accuracy of the information in the application, 19-14 and certifying that the application meets all requirements of applicable law; 10. An application or renewal fee which shall be set by the city council by resolution. C. An applicant may show that it would be inappropriate to deny it a franchise under subsec- tion (B)(8)(b) of this section, by virtue of the par- ticular circumstances surrounding the acts or omissions at issue; the steps taken by the applicant to cure all harms flowing therefrom and to prevent their recurrence; and the lack of involvement of the applicant's principals, or the remoteness of the acts or omissions from the operation of open video sys- tem facilities. D. To the extent that the applicant is in any respect relying on the financial or technical resources of another person, including another affiliate, the proofs required by subsections (B)(5) through (13)(7) of this section should be provided for that person. An applicant will be presumed to have the requisite financial, or technical or legal qualifications to the extent such qualifications have been reviewed and approved by a state agency of competent jurisdiction; or if applicant is a holder of a franchise in the city for a cable system or open video system, and conduct under such other fran- chise provides no basis for additional investiga- tion. (Ord. 692 § 4, 2001) 19.07.030 Applications for transfer. An application for the transfer of an existing franchise must contain the same information required by MMC 19.07.020, except that, if the transferor submitted an application under MMC 19.07.020, to the extent information provided by the transferor under MMC 19.07.020(B) remains accurate, the transferee may simply cross-refer- ence the earlier application. (Ord. 692 § 4, 2001) 19.07.040 City review. The city may. request such additional informa- tion as it finds necessary, and require such modifi- cations to the application as may be necessary in the exercise of the city's authority over open video systems. Once the information required by the city has been provided, the application shall be subject to review by the city and any approval will also be subject to a city determination that: A. The applicant has the qualifications to con- struct, operate and repair the system proposed in conformity with applicable law; B. The applicant will accept the modifications required by the city to its proposed system; Medina Municipal Code 19.07.060 C. The applicant will enter into a franchise and comply with any required conditions, including but not limited to the obligation to establish intercon- nections for provision of local access channels des- ignated by the city; D. In the case of a transfer, the approval is also subject to a determination that: 1. There will be no adverse effect on the pub- lic interest, or the city's interest in the franchise; 2. Transferee will agree to be bound by all the conditions of the franchise and to assume all the obligations of its predecessor; and 3. Any outstanding compliance and compen- sation issues will be resolved to the satisfaction of the city; E. An applicant shall not be issued a franchise if it files or has in the previous three years filed materially inaccurate or misleading information in a franchise application or intentionally withheld information that the applicant lawfully is required to provide. (Ord. 692 § 4, 2001) 19.07.050 Compensation. Every operator of an open video system shall pay compensation to the city in the amount set. forth in the franchise, which amount shall be sub- ject to annual adjustment. To the extent that the open video system is used for the provision of telecommunications services, the open video system operator shall pay the fee required for telecommunications providers. (Ord. 692 § 4, 2001) 19.07.060 Annual reports. No later than 90 days after the end of its fiscal year, a cable operator shall submit a written report that shall contain such information as may be required from time to time by the city, and at least the following, unless the city waives the require- ment: A. A summary of the previous year's activities in the development of the open video system, including descriptions of services begun or discon- tinued, the number of subscribers gained or lost for each category of cable service; B. A revenue report from the previous calendar year for the open video system, certified by the operator's chief financial officer; C. An ownership report, including all persons who at the time of filing control or own an interest in the open video system operator of 10 percent or more; D. A list of officers and members of the board of directors of the franchisee and any affiliates 19-15 directly involved in the operation or the mainte- nance of the open video system; E. A complete report on its plant. This plant report shall state the physical miles of plant con- struction and plant in operation during the prior calendar year categorized as aerial and under- ground, identify any cases where subscribers con- tributed to plant extension, provide revisions to the open video system maps filed with the city, and report the results of appropriate electronic mea- surements to show conformity with FCC technical standards; F. Once the information required by subsec- tions (A) through (E) of this section has been filed, it need be refiled only if it changes. (Ord. 692 § 4, 2001) 19.08.010 Chapter 19.08 FACILITIES LEASE Sections: 19.08.010 Facilities lease. 19.08.020 Lease application. 19.08.030 Determination by the city. 19.08.040 Agreement. 19.08.050 Nonexclusive lease. 19.08.060 Term of facilities lease. 19.08.070 Rights granted. 19.08.080 Interference with other users. 19.08.090 Ownership and removal of improvements. 19.08.100 Compensation to the city. 19.08.110 Amendment of facilities lease. 19.08.120 Renewal application. 19.08.130 Renewal determination. 19.08.140 Obligation to cure as a condition of renewal. 19.08.010 Facilities lease. The city council may, in its sole discretion which is hereby reserved, approvefacilities leases for the location of telecommunications facilities and other facilities upon city property other than rights -of - way. Neither this section, nor any other provision of this title shall be construed to create an entitle- ment or vested right in any person or entity of any type. Facilities leases granted for the installation and/or construction of wireless communications fa- cilities shall also comply with the terms and provi- sions of Chapter 17.90 MMC. (Ord. 692 § 5, 2001) 19.08.020 Lease application. Any person that desires to solicit the city's approval of a facilities lease pursuant to this chap- ter shall file a lease proposal with the city's clerk which, in addition to the information required by MMC 19.04.020, shall include the following: A. A description of the telecommunications facilities or other equipment proposed to be located upon city property; B. A description of the city property upon which the applicant proposes to locate telecommu- nications facilities or other equipment; C. Preliminary plans and specifications in suffi- cient detail to identify: 1. The location(s) of existing telecommuni- cations facilities or other equipment upon the city property, whether publicly or privately owned; 19-16 2. The location and source of electric and other utilities required for the installation and oper- ation of the proposed facilities; D. Accurate scale conceptual drawings and dia- grams of sufficient specificity to analyze the aes- thetic impacts of the proposed telecommunications facilities or other equipment; E. Whether the applicant intends to provide cable service, video dialtone service or other video programming service, and sufficient information to determine whether such service is subject to cable franchising; F. An accurate map showing the location of any existing telecommunications facilities in the city that the applicant intends to use or lease; G. A description of the services or facilities that the applicant will offer or make available to the city and other public, educational, and governmental institutions; H. Such other and further information as may be requested by the city; and I. An application fee which shall be set by the city council by resolution. (Ord. 692 § 5, 2001) 19.08.030 Determination by the city. Recognizing that the city is under no obligation to grant a facilities lease for the use of city prop- erty, the city shall strive to consider and take action on applications for facilities leases within 120 days after receiving a complete application for such a lease unless additional time is reasonably neces- sary for action by the city council. When such action is taken, the city shall issue a written deter- mination granting or denying the lease in whole or in part, applying the standards set forth below, or any other such criteria as the city council may choose to apply. If the lease application is denied, the determination shall include the reason for denial, if any. A. The capacity of the city property and rights - of -way to accommodate the applicant's proposed facilities; B. The capacity of the city property and rights - of -way to accommodate additional utility and tele- communications facilities if the lease is granted; C. The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the lease is granted; D. The public interest in minimizing the cost and disruption of construction upon city property and within the rights -of -way; E. The service that applicant will provide to the community and region; Medina Municipal Code 19.08.090 F. The effect, if any, on public health, safety, and welfare if the lease requested is approved; G. The availability of alternate routes and/or locations for the proposed facilities; H. Whether the applicant is in compliance with applicable federal and state telecommunications laws, regulations and policies, including, but not limited to, the registration requirements adminis- tered by the Washington Utilities and Transporta- tion Commission; I. The potential for radio frequency and other interference with existing public and private tele- communications or other facilities located upon the city property; J. The potential for radio frequency and other interference or impacts upon residential, commer- cial, and other uses located within the vicinity of the city property; K. Such other factors, such as aesthetics, as may demonstrate that the lease to use the city prop- erty will or will not serve the community interest; L. The maximization of co -location opportuni- ties with other similar uses. (Ord. 692 § 5, 2001) 19.08.040 Agreement. No facilities lease shall be deemed to have been granted hereunder until the applicant and the city have executed a written agreement setting forth the particular terms and provisions under which the lessee has been granted the right to occupy and use the city property. (Ord. 692 § 5, 2001) 19.08.050 Nonexclusive lease. No facilities lease granted under this chapter shall confer any exclusive right, privilege, license, or franchise to occupy or use city property for delivery of telecommunications services or any other purposes. (Ord. 692 § 5, 2001) 19.08.060 Term of facilities lease. Unless otherwise specified in a lease agreement, a facilities lease granted hereunder shall be valid for a term of one year, subject to annual renewal as provided in this chapter. (Ord. 692 § 5, 2001) 19.08.070 Rights granted. No facilities lease granted under this chapter shall convey any right, title or interest in the city property, but shall be deemed a license only to use and occupy the city property for the limited pur- poses and term stated in the lease agreement. Fur- ther, no facilities lease shall be construed as any warranty of title. (Ord. 692 § 5, 2001) 19-17 19.08.080 Interference with other users. No facilities lease shall be granted under this chapter unless it contains a provision which is sub- stantially similar to the following: The City has previously entered into or may enter into leases with other tenants for their equipment and antenna facilities. Lessee acknowledges that the City may lease the City property for the purposes of transmitting and receiving telecommunica- tion signals from the City property. The City, however, is not in any way responsi- ble or liable for any interference with Les- see's use of the City property which may be caused by the use and operation of any other tenant's equipment, even if caused by new technology. In the event that any other tenant's activities interfere with the Lessee's use of the City property, and the Lessee cannot work out this interference with the other tenants, the Lessee may, upon 30 days' notice to the City, terminate this lease and restore the City property to its original condition, reasonable wear and tear excepted. The Lessee shall cooperate with all other tenants to identify the causes of and work towards the resolution of any electronic interference problem. In addi- tion, the Lessee agrees to eliminate any radio or television interference caused to City -owned facilities or surrounding resi- dences at Lessee's own expense and without installation of extra filters on City - owned equipment. Lessee further agrees to accept such interference as may be re- ceived from City operated telecommunica- tions or other facilities located upon the City property subject to this lease. (Ord. 692 § 5, 2001) 19.08.090 Ownership and removal of improvements. No facilities lease shall be granted under this chapter unless it contains a provision which states that all buildings, landscaping, and all other im- provements, except telecommunications equip- ment, shall become the property of the city upon expiration or termination of the lease. In the event that the city requires removal of such improve- ments, such removal shall be accomplished at the sole expense of the lessee and completed within 90 days after receiving notice from the city requiring removal of the improvements. In the event that tele- 19.08.100 communications facilities or other equipment are left upon city property after expiration or termina- tion of the lease, they shall become the property of the city if not removed by the lessee upon 30 days' written notice from the city. (Ord. 692 § 5, 2001) 19.08.100 Compensation to the city. Each facilities lease granted under this chapter is subject to the city's right, which is expressly reserved, to annually fix a fair and reasonable com- pensation to be paid for the rights granted to the lessee; provided, nothing in this title shall prohibit the city and a lessee from agreeing to the compen- sation to be paid. Such compensation shall be pay- able in advance of the effective date of the lease and on or before January 31 st of each calendar year. Any payments received after the due date shall include a late payment penalty of two percent of the annual rental fee for each day or part thereof past the due date. The compensation shall be nego- tiated by the city manager or designee, subject to the city council's final approval, based on the fol- lowing criteria: A. Comparable lease rates for other public or private property; B. In the case land is leased, the value of the land and any associated air space; C. If structure of another user is involved, any amount needed to reimburse that user, in addition to the above; D. A yearly escalator rate commonly used in comparable leases; E. Any unique characteristics of the leased area tending to affect the value of the leasehold. (Ord. 692 § 5, 2001) 19.08.110 Amendment of facilities lease. Except as provided within an existing lease agreement, a new lease application and lease agree- ment shall be required of any telecommunications carrier or other entity that desires to expand, mod- ify, or relocate its telecommunications facilities or other equipment located upon city property. If or- dered by the city to locate or relocate its telecom- munications facilities or other equipment on the city property, the city shall grant a lease amend- ment without further application. (Ord. 692 § 5, 2001) 19.08.120 Renewal application. A lessee that desires to renew its facilities lease under this chapter shall, not more than 180 days nor less than 120 days before expiration of the cur- rent facilities lease, file an application with the city 19-18 for renewal of its facilities lease which shall include the following: A. The information required pursuant to MMC 19.08.020; B. Any information required pursuant to the facilities lease agreement between the city and the lessee; C. All deposits or charges required pursuant to this chapter; and D. A renewal fee which shall be set by the city council by resolution. (Ord. 692 § 5, 2001) 19.08.130 Renewal determination. Recognizing that the city is under no obligation to grant a renewal of a facilities lease for the use of city property, the city shall strive to consider and take action on applications for renewal of such leases within 60 days after receiving a complete application for such a lease renewal unless addi- tional time is reasonably necessary for action by the city council. When such action is taken, the city shall issue a written determination granting or denying the lease renewal in whole or in part, applying the standards set forth below, or any other such criteria as the city council may choose to apply. If the renewal application is denied, the written determination shall include the reason for denial, if any: A. The financial and technical ability of the applicant; B. The legal ability of the applicant; C. The continuing capacity of the city property to accommodate the applicant's existing facilities; D. The applicant's compliance with the require- ments of this chapter and the lease agreement; E. Applicable federal, state and local telecom- munications laws, rules and policies; F. Such other factors as may demonstrate that the continued grant to use the city property ways will or will not serve the community interest. (Ord. 692 § 5, 2001) 19.08.140 Obligation to cure as a condition of renewal. No facilities lease shall be renewed until any ongoing violations or defaults in the lessee's per- formance of the lease agreement, or of the require- ments of this title, have been cured, or a plan detailing the corrective action to be taken by the lessee has been approved by the city. (Ord. 692 § 5, 2001) Medina Municipal Code 19.10.040 Chapter 19.10 CONDITIONS OF TELECOMMUNICATIONS RIGHT-OF-WAY USE AUTHORIZATIONS, FRANCHISES, AND FACILITIES LEASES Sections: 19.10.010 Purpose. 19.10.020 Acceptance. 19.10.030 Police power. 19.10.040 Rules and regulations by the city. 19.10.050 Location of facilities. 19.10.060 Conduit occupancy. 19.10.070 Occupancy of city -owned conduit. 19.10.080 Compliance with One Number Locator Service. 19.10.090 Construction permits. 19.10.100 Interference with rights -of -way. 19.10.110 Damage to property. 19.10.120 Notice of work. 19.10.130 Repair and emergency work. 19.10.140 Maintenance of facilities. 19.10.150 Relocation or removal of facilities. 19.10.160 Building moving. 19.10.170 Removal of unauthorized facilities. 19.10.180 Emergency removal or relocation of facilities. 19.10.190 Damage to facilities. 19.10.200 Restoration of rights -of -way, other ways, and city property. 19.10.210 Facilities maps. 19.10.220 Duty to provide information. 19.10.230 Leased capacity. 19.10.240 Insurance. 19.10.250 General indemnification. 19.10.260 Performance and construction surety 19.10.270 Security fund. 19.10.280 Restoration bond. 19.10.290 Coordination of construction activities. 19.10.300 Assignments or transfers of grant. 19.10.310 Transactions affecting control of grant. 19.10.320 Revocation or termination of grant. 19.10.330 Notice and duty to cure. 19.10.340 Hearing. 19.10.350 Standards for revocation or lesser sanctions. 19.10.360 Incorporation by reference. 19.10.370 Notice of entry on private property. 19.10.380 Safety requirements. 19-19 19.10.390 Most favored community. 19.10.400 Relationship with WUTC proceedings. 19.10.010 Purpose. The purpose of this chapter is to set forth certain terms and conditions which are common to all tele- communications right-of-way use authorizations, telecommunications franchises, and facilities leases. Except as otherwise provided in this title or in such an authorization, franchise, or lease, the provisions of this chapter apply to all such authori- zations, franchises, and leases approved or granted by the city. (Ord. 692 § 6, 2001) 19.10.020 Acceptance. No authorization, franchise, or lease granted pursuant to the provisions of this title shall become effective unless and until the ordinance or other city action granting the same has become effective. Within 30 days after the effective date of the ordi- nance or other city action granting an authoriza- tion, franchise, or lease, or within such extended period of time as the council in its discretion may authorize, the applicant shall file with the city administrator an unconditional written acceptance of the authorization, franchise, or lease, in a form satisfactory to the city attorney, together with the bonds, insurance policies, and security fund required by this chapter. (Ord. 692 § 6, 2001) 19.10.030 Police power. In accepting any authorization, franchise or lease, the grantee, franchisee, or lessee acknowl- edges that its rights hereunder are subject to the legitimate rights of the police power of the city to adopt and enforce general ordinances necessary to protect the safety and welfare of the public, and it agrees to comply with all applicable general laws enacted by the city pursuant to such power. (Ord. 692 § 6, 2001) 19.10.040 Rules and regulations by the city. In addition to the inherent powers of the city to regulate and control any authorization, franchise, or lease it issues, the authority granted to it by the Cable Act and the Telecommunications Act of 1996, and those powers expressly reserved by the city, or agreed to and provided for in any authori- zation, franchise, or lease, the right and power is hereby reserved by the city to promulgate such additional regulations as it may find necessary in the exercise of its lawful powers giving due regard to the rights of grantees, franchisees, and lessees. 19.10.050 Except as provided in this title, the foregoing does not allow for amendment by the city of material terms of any authorization, franchise, or lease it issues without the consent of the grantee, franchi- see, or lessee. (Ord. 692 § 6, 2001) 19.10.050 Location of facilities. All facilities shall be constructed, installed, and located in accordance with the following terms and conditions, unless otherwise specified in an autho- rization, franchise, or lease agreement: A. Unless otherwise provided in an authoriza- tion, franchise, or lease, a grantee, franchisee, or lessee with permission to occupy a public way must locate its cable or telecommunications facili- ties underground. B. Whenever any new or existing electric utili- ties, cable facilities, or telecommunications facili- ties are located or relocated underground within a public way of the city, a grantee, franchisee, or les- see that currently occupies the same public way shall relocate its facilities underground at no ex- pense to the city. Absent extraordinary circum- stances or undue hardship as determined by the city manager, such relocation shall be made concur- rently to minimize the disruption of the rights -of - way. No extension granted by the city manager un- der this subsection shall exceed a period of 12 months. C. At the option of the city, whenever new ducts or conduit are constructed, relocated or placed, the grantee, franchisee or lessee may be required to provide the city with additional duct or conduit and related structures necessary to access the duct and conduit. The cost of such items shall be recovered as provided in state law. D. Any overhead facilities will be installed as part of the backbone system only. No service leads will be installed overhead. (Ord. 692 § 6, 2001) 19.10.060 Conduit occupancy. In furtherance of the public purpose of reduction of rights -of -way excavation, it is the goal of the city to encourage both the shared occupancy of underground conduit as well as the construction, whenever possible, of excess conduit capacity for occupancy of future right-of-way occupants. (Ord. 692 § 6, 2001) 19.10.070 Occupancy of city -owned conduit. In furtherance of the same objectives of MMC 19.10.060, if the city owns or leases conduit in the path of grantee's proposed telecommunications facilities, and provided it is technologically feasi- 19-20 ble for grantee to occupy the conduit owned or leased by the city, grantee shall be required to occupy the conduit owned or leased by the city in order to reduce the necessity to excavate the rights - of -way. Grantee shall pay to the city a fee for such occupancy which shall be the cost grantee would have expended to construct its own conduit from the outset, as certified by the grantee's engineer and approved by the city engineer. The city and grantee may agree to amortize the fee through annual payments to the city over the term of the license or franchise, including the time value of money. (Ord. 692 § 6, 2001) 19.10.080 Compliance with One Number Locator Service. All grantees, franchisees, and lessees shall, before commencing any construction in the rights - of -way, comply with the provisions of the One Number Locator Service. (Ord. 692 § 6, 2001) 19.10.090 Construction permits. All grantees, franchisees, and lessees are required to obtain construction permits for cable and telecommunications facilities as required by this code. However, nothing in this title shall pro- hibit the city and a grantee, franchisee, or lessee from agreeing to alternative plan review, permit, and construction procedures for an authorization, franchise, or lease granted under this title, provided such alternative procedures provide substantially equivalent safeguards for responsible construction practices. (Ord. 692 § 6, 2001) 19.10.100 Interference with rights -of -way. No grantee, franchisee, or lessee may locate or maintain its cable or telecommunications facilities so as to unreasonably interfere with the use of the rights -of -way by the city, by the general public or by other persons authorized to use or be present in or upon the rights -of -way. All such facilities shall be moved by the grantee, franchisee, or lessee, at the grantee, franchisee, or lessee's cost, tempo- rarily or permanently, as determined by the city engineer, subject to any restrictions imposed by state law. (Ord. 692 § 6, 2001) 19.10.110 Damage to property. No grantee, franchisee, or lessee, nor any person acting on a grantee, franchisee, or lessee's behalf shall take any action or permit any action to be done which may impair or damage any city prop- erty, rights -of -way of the city or other property, whether publicly or privately owned, located in, on Medina Municipal Code 19.10.170 or adjacent thereto. This section shall not apply to necessary street cuts approved by the city. (Ord. 692 § 6, 2001) 19.10.120 Notice of work. Unless otherwise provided in an authorization, franchise, or lease agreement, no grantee, franchi- see, or lessee, nor any person acting on the grantee, franchisee, or lessee's behalf, shall commence any nonemergency work in or about the rights -of -way or upon city property without 10 working days' advance notice to the city. (Ord. 692 § 6, 2001) 19.10.130 Repair and emergency work. In the event of an unexpected repair or emer- gency, a grantee, franchisee, or lessee may com- mence such repair and emergency response work as required under the circumstances, provided the grantee, franchisee, or lessee shall notify the city as promptly as possible, before such repair or emer- gency work commences or as soon thereafter as possible if advance notice is not practicable. (Ord. 692 § 6, 2001) 19.10.140 Maintenance of facilities. Each grantee, franchisee, or lessee shall main- tain its facilities in good and safe condition and in a manner that complies with all applicable federal, state and local requirements. (Ord. 692 § 6, 2001) 19.10.150 Relocation or removal of facilities. Within 30 days following written notice from the city, a grantee, franchisee, or lessee shall pro- vide a schedule to the city indicating the estimated completion date for temporarily or permanently removing, relocating, changing, or altering the position of any cable or telecommunications facil- ities within the rights -of -way or upon city property whenever the city engineer shall have determined that such removal, relocation, change, or alteration is reasonably necessary for: A. The construction, repair, maintenance, or installation of any city or other public improve- ment in or upon the rights -of -way either by the city or a developer as required by development approval; and B. The operations of the city or other govern- mental entity in or upon the rights -of -way. C. This work shall generally be completed within 90 days following the original notice by the city unless a different duration is specifically authorized by the city. (Ord. 692 § 6, 2001) 19-21 19.10.160 Building moving. Whenever any person shall have obtained per- mission from the city to use any street or public way for the purpose of moving any building, a grantee, franchisee, or lessee, upon 15 days' writ- ten notice from the city, shall raise or remove, at the expense of the person desiring to move the building, any of the grantee, franchisee, or lessee's facilities which may obstruct the removal of such building; provided, that the person desiring to move the building shall comply with all require- ments of the city for the movement of buildings. (Ord. 692 § 6, 2001) 19.10.170 Removal of unauthorized facilities. Within 90 days following written notice from the city, any telecommunications carrier or provider or other person who owns, controls, or maintains any unauthorized cable or telecommunications system, facility, or related appurtenances within the rights - of -way of the city shall, at its own expense, remove such facilities or appurtenances from the rights -of - way of the city. A cable or telecommunications sys- tem or facility is unauthorized and subject to removal in the following circumstances: A. Upon expiration or termination of the grantee or franchisee's authorization or franchise; B. Upon abandonment of a facility within the rights -of -way of the city. Any property of a grantee or franchisee shall be deemed abandoned if left in place 90 days after expiration or termination of an authorization or franchise; C. If the system or facility was constructed or installed without the prior grant of an authorization or franchise; D. If the system or facility was constructed or installed without the- prior issuance of a required construction permit; and E. If the system or facility was constructed or installed at a location not permitted by the authori- zation or franchise. Provided, however, that the city may, in its sole discretion, allow a grantee, franchisee, or other such persons who may own, control, or maintain cable or telecommunications facilities within the rights -of -way of the city to abandon such facilities in place. No facilities of any type may be aban- doned in place without the express written consent of the city. Any plan for abandonment or removal of a grantee or franchisee's facilities must be first approved by the city manager, and all necessary permits must be obtained prior to such work. Upon permanent abandonment of the property of such persons in place, the property shall become that of 19.10.180 the city, and such persons shall submit to the city an instrument in writing, to be approved by the city attorney, transferring to the city the ownership of such property. The provisions of this section shall survive the expiration, revocation, or termination of an authorization or franchise granted under this title. (Ord. 692 § 6, 2001) 19.10.180 Emergency removal or relocation of facilities. The city retains the right and privilege to cut or move any cable or telecommunications facilities located within the rights -of -way of the city and upon city property, as the city may determine to be necessary, appropriate or useful in response to any public health or safety emergency. The city shall not be liable to any cable operator, telecommunica- tions carrier or provider, or any other party for any direct, indirect, or any other such damages suffered by any person or entity of any type as a direct or indirect result of the city's actions under this sec- tion. (Ord. 692 § 6, 2001) 19.10.190 Damage to facilities. Unless directly and proximately caused by the willful, intentional, or malicious acts by the city, the city shall not be liable for any damage to or loss of any cable or telecommunications facility upon city property or within the rights -of -way of the city as a result of or in connection with any public works, public improvements, construction, exca- vation, grading, filling, or work of any kind on such city property or within the rights -of -way by or on behalf of the city. (Ord. 692 § 6, 2001) 19.10.200 Restoration of rights -of -way, other ways, and city property. A. When a grantee, franchisee, lessee, or any person acting on its behalf, does any work in or af- fecting any rights -of -way or city property, it shall, at its own expense, promptly remove any obstruc- tions therefrom and restore such ways or property to as good a condition as existed before the work was undertaken, unless otherwise directed by the city. B. If weather or other conditions do not permit the complete restoration required by this section, the grantee, franchisee, or lessee shall temporarily restore the affected ways or property. Such tempo- rary restoration shall be at the grantee, franchisee, or lessee's sole expense and the grantee, franchi- see, or lessee shall promptly undertake and com- plete the required permanent restoration when the 19-22 weather or other conditions no longer prevent such permanent restoration. C. A grantee, franchisee, lessee or other person acting in its behalf shall adhere to traffic control measures established by the Manual of Uniform Traffic Control Devices, latest edition, and use suit- able barricades, flags, flagmen, lights, flares, and other measures as required for the safety of all members of the general public and to prevent injury or damage to any person, vehicle, or property by reason of such work in or affecting such ways or property- D. The city engineer shall be responsible for inspection and final approval of the condition of the rights -of -way and city property following any construction and restoration activities therein. Fur- ther, the provisions of this section shall survive the expiration, revocation, or termination of an autho- rization, franchise, lease, or other agreement granted pursuant to this title. (Ord. 692 § 6, 2001) 19.10.210 Facilities maps. For all new or relocated facilities, each grantee, franchisee, and lessee shall provide the city with a map or maps accurately reflecting the horizontal and vertical location and configuration of all of their telecommunications facilities within the rights -of -way and upon city property. Each grantee, franchisee, and lessee shall provide the city with updated maps annually or upon request by the city. (Ord: 692 § 6, 2001) 19.10.220 Duty to provide information. Within 10 days of a written request from the city, each grantee, franchisee, or lessee shall fur- nish the city with information sufficient to demon- strate: A. That the grantee, franchisee, or lessee has complied with all requirements of this title; and B. That all sales, utility and/or telecommunica- tions taxes due the city in connection with the cable or telecommunications services and facilities pro- vided by the grantee, franchisee, or lessee have been properly collected and paid by the grantee, franchisee, or lessee. All books, records, maps and other documents, maintained by the grantee, franchisee, or lessee with respect to its facilities within the rights -of - way and upon city property shall be made available for inspection by the city at reasonable times and intervals; provided, however, that nothing in this section shall be construed to require a grantee, franchisee, or lessee to violate state or federal law regarding subscriber privacy, nor shall this section Medina Municipal Code 19.10.240 be construed to require a grantee, franchisee, or lessee to disclose proprietary or confidential infor- mation without adequate safeguards for its confi- dential or proprietary nature. (Ord. 692 § 6, 2001) 19.10.230 Leased capacity. A grantee, franchisee, or lessee shall have the right, without prior city approval, to offer or pro- vide capacity or bandwidth to another telecommu- nications provider consistent with such permit, franchise, or lease; provided: A. The grantee, franchisee, or lessee shall fur- nish the city with a copy of any such lease or agree- ment between the grantee, franchisee, or lessee and the provider; and B. The telecommunications provider has com- plied, to the extent applicable, with the require- ments of this title. (Ord. 692 § 6, 2001) 19.10.240 Insurance. Unless otherwise provided in an authorization, franchise, or lease agreement, each grantee, fran- chisee, or lessee shall, as a condition of the permit or grant, secure and maintain the following liability insurance policies insuring both the grantee, fran- chisee, or lessee and the city, and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volun- teers as co -insureds against claims for injuries to persons or damages to property which may arise from or in connection with the exercise of the rights, privileges, and authority granted to the grantee, franchisee, or lessee: A. Comprehensive general liability insurance, written on an occurrence basis, with limits not less than: 1. Five million dollars for bodily injury or death to each person; 2. Five million dollars for property damage resulting from any one accident; and 3. Five million dollars for all other types of liability; B. Automobile liability for owned, non -owned and hired vehicles with a limit of $3,000,000 for each person and $3,000,000 for each accident; C. Worker's compensation within statutory limits and employer's liability insurance with lim- its of not less than $1,000,000; D. Comprehensive form premises -operations, explosions and collapse hazard, underground haz- ard and products completed hazard with limits of not less than $3,000,000; E. The liability insurance policies required by this section shall be maintained by the grantee, 19-23 franchisee, or lessee throughout the term of the au- thorization, franchise, or lease, and such other pe- riod of time during which the grantee, franchisee, or lessee is operating without an authorization, franchise, or lease hereunder, or is engaged in the removal of its telecommunications facilities. The grantee, franchisee, or lessee shall provide an insur- ance certificate, together with an endorsement naming the city, and its elected and appointed of- ficers, officials, agents, employees, representa- tives, engineers, consultants, and volunteers as ad- ditional insureds, to the city prior to the commencement of any work or installation of any facilities pursuant to said authorization, franchise, or lease. Any deductibles or self -insured retentions must be declared to and approved by the city. Pay- ment of deductibles and self -insured retentions shall be the sole responsibility of the grantee, fran- chisee, or lessee. The insurance certificate required by this section shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, ex- cept with respect to the limits of the insurer's lia- bility. The grantee, franchisee, or lessee's insur- ance shall be primary insurance as respects the city, its officers, officials, employees, agents, consult- ants, and volunteers. Any insurance maintained by the city, its officers, officials, employees, consult- ants, agents, and volunteers shall be in excess of the grantee, franchisee, or lessee's insurance and shall not contribute with it; F. In addition to the coverage requirements set forth in this section, each such insurance policy shall contain the following endorsement: It is hereby understood and agreed that this policy may not be canceled nor the in- tention not to renew be stated until 60 days after receipt by the City, by registered mail, of a written notice addressed to the City Manager of such intent to cancel or not to renew. G. Within 30 days after receipt by the city of said notice, and in no event later than 15 days prior to said cancellation or intent not to renew, the grantee, franchisee, or lessee shall obtain and fur- nish to the city replacement insurance policies meeting the requirements of this section; H. For those companies who are self -insured, they must provide documentation acceptable to the city demonstrating that the coverage provided meets or exceeds that described above. (Ord. 692 § 6, 2001) 19.10.250 19.10.250 General indemnification. lease. This covenant of indemnification No authorization, franchise, or lease shall be shall include, but not be limited by this ref - deemed to be granted under this title unless it erence, claims against the City arising as a includes an indemnity clause substantially con- result of the negligent acts or omissions of forming to the following: the grantee, franchisee, or lessee, its agents, servants, officers, or employees in The grantee, franchisee, or lessee hereby barricading, instituting trench safety sys- releases, covenants not to bring suit and tems or providing other adequate warnings agrees to indemnify, defend and hold of any excavation, construction, or work in harmless the City, its elected and appoint- any public right-of-way or other public ed officials, officers, employees, agents, place in performance of work or services representatives, engineers, and consult- permitted under this authorization, fran- ants from any and all claims, costs, judg- chise, or lease. ments, awards, or liability to any person, in- cluding claims by the grantee, franchisee, Inspection or acceptance by the City of or lessee's own employees to which the any work performed by the grantee, fran- grantee, franchisee, or lessee might other- chisee, or lessee at the time of completion wise be immune under Title 51 RCW, aris- of construction shall not be grounds for ing from injury or death of any person or avoidance of any of these covenants of in - damage to property of which the negligent demnification. Said indemnification obliga- acts or omissions of the grantee, franchi- tions shall extend to claims which are not see, or lessee, its agents, servants, offic- reduced to a suit and any claims which ers, or employees in performing under this may be compromised prior to the culmina- authorization, franchise, or lease are the tion of any litigation or the institution of any proximate cause. The grantee, franchisee, litigation. or lessee further releases, covenants not to bring suit and agrees to indemnify, defend In the event that the grantee, franchisee, and hold harmless the City, its elected and or lessee refuses the tender of defense in appointed officials, officers, employees, any suit or any claim, said tender having agents, representatives, engineers, and been made pursuant to the indemnification consultants from any and all claims, costs, clauses contained herein, and said refusal judgments, awards, or liability to any per- is subsequently determined by a court son including claims by the grantee, fran- having jurisdiction (or such other tribunal chisee, or lessee's own employees, includ- that the parties shall agree to decide the ing those claims to which the grantee, matter), to have been a wrongful refusal on franchisee, or lessee might otherwise have the part of the grantee, franchisee, or les- immunity under Title 51 RCW, arising see, then the grantee, franchisee, or les- against the City solely by virtue of the City's see shall pay all of the City's costs for de - ownership or control of the rights -of -way or fense of the action, including all other public properties, by virtue of the reasonable expert witness fees and rea- grantee, franchisee, or lessee's exercise of sonable attorneys' fees and the reason - the rights granted herein, or by virtue of the able costs of the City, including reasonable City's permitting the franchisee, or lessee's attorneys' fees of recovering under this in - use of the City's rights -of -way or other pub- demnification clause. lic property, based upon the City's inspec- tion or lack of inspection of work performed In the event of liability for damages arising by the grantee, franchisee, or lessee, its out of bodily injury to persons or damages agents and servants, officers or employees to property caused by or resulting from the in connection with work authorized on the concurrent negligence of the grantee, fran- City's property or property over which the chisee, or lessee, and the City, its officers, City has control, pursuant to this authoriza- employees and agents, the grantee, fran- tion, franchise, or lease, or pursuant to any chisee, or lessee's liability hereunder shall other permit or approval issued in connec- be only to the extent of the grantee, fran- tion with this authorization, franchise, or chisee, or lessee's negligence. It is further 19-24 Medina Municipal Code 19.10.270 specifically and expressly understood that the indemnification provided herein consti- tutes the grantee, franchisee, or lessee's waiver of immunity under Title 51 RCW, solely for the purposes of this indemnifica- tion. This waiver has been mutually nego- tiated by the parties. The provisions of this Section shall survive the expiration or termination of this autho- rization, franchise, or lease agreement. Notwithstanding any other provisions of this Section, the grantee, franchisee, or lessee assumes the risk of damage to its facilities located in the City's rights -of -way, easements, and property from activities conducted by the City, its officers, agents, employees, and contractors. The grantee, franchisee, or lessee releases and waives any and all claims against the City, its of- ficers, agents, employees, or contractors for damage to or destruction of the grantee, franchisee, or lessee's facilities caused by or arising out of activities conducted by the City, its officers, agents, employees, and contractors, in the rights -of -way, ease- ments, or property subject to this authori- zation, franchise, or lease, except to the extent any such damage or destruction is caused by or arises from the sole negli- gence or any willful or malicious action on the part of the City, its officers, agents, em- ployees, or contractors. The grantee, fran- chisee, or lessee further agrees to indem- nify, hold harmless and defend the City against any claims for damages, including, but not limited to, business interruption damages and lost profits, brought by or un- der users of the grantee, franchisee, or les- see's facilities as the result of any interrup- tion of service due to damage or destruction of the user's facilities caused by or arising out of activities conducted by the City, its officers, agents, employees, or contractors, except to the extent any such damage or destruction is caused by or aris- es from the sole negligence or any willful or malicious actions on the part of the City, its officers, agents, employees, or contrac- tors. (Ord. 692 § 6, 2001) 19-25 19.10.260 Performance and construction surety. Before an authorization, franchise, or lease granted pursuant to this title is effective, and as necessary thereafter, the grantee, franchisee, or les- see shall provide and deposit such moneys, bonds, letters of credit, or other instruments in form and substance acceptable to the city as may be required by this title or by an applicable authorization, fran- chise, or lease agreement. (Ord. 692 § 6, 2001) 19..10.270 Security fund. Each grantee, franchisee, or lessee shall estab- lish a permanent security fund with the city by depositing the amount of $20,000, or such lesser amount as deemed necessary by the city engineer with the city manager in the form of an uncondi- tional letter of credit, or other instrument accept- able to the city, which fund shall be maintained at the sole expense of the grantee, franchisee, or les- see so long as any of the grantee, franchisee, or les- see's cable or telecommunications facilities are located within the rights -of -way of the city or upon city property. A. The fund shall serve as security for the full and complete performance of this chapter, includ- ing any costs, expenses, damages, or loss the city pays or incurs, including civil penalties, because of any failure attributable to the grantee, franchisee, or lessee to comply with the codes, ordinances, rules, regulations, or permits of the city. B. Before any sums are withdrawn from the security fund, the city shall give written notice to the grantee, franchisee, or lessee: 1. Describing the act, default or failure to be remedied, or the damages, costs or expenses which the city has incurred by reason of grantee, franchi- see, or lessee's act or default; 2. Providing a reasonable opportunity for grantee, franchisee, or lessee to first remedy the existing or ongoing default or failure, if applicable; 3. Providing a reasonable opportunity for grantee, franchisee, or lessee to pay any moneys due the city before the city withdraws the amount thereof from the security fund, if applicable; and 4. That the grantee, franchisee, or lessee will be given an opportunity to review the act, default or failure described in the notice with the city man- ager or designee. C. Grantees, franchisees and lessees shall replenish the security fund within 14 days after written notice from the city that there is a defi- ciency in the amount of the fund. (Ord. 692 § 6, 2001) 19.10.280 19.10.280 Restoration bond. Unless otherwise provided in an authorization, franchise, or lease agreement, a performance bond written by a corporate surety acceptable to the city equal to at least 100 percent of the estimated cost of removing the grantee, franchisee, or lessee's telecommunications equipment and facilities and restoring the rights -of -way of the city and/or city - owned property to its preconstruction condition shall be deposited before any construction is com- menced. Said bond shall be required to remain in full force until 60 days after completion of the con- struction and/or improvements within the rights - of -way of the city or upon city -owned property, and shall warrant all such restoration work for a period of two years. The purpose of this bond is to guarantee removal of partially completed and/or nonconforming telecommunications facilities and to fully restore the rights -of -way of the city and city -owned property to its preconstruction condi- tion. (Ord. 692 § 6, 2001) 19.10.290 Coordination of construction activities. All grantees and franchisees are required to cooperate with the city and with each other. A. By February 1st of each year, grantees and franchisees shall provide the city with a schedule of their proposed construction activities in, around, or that may affect the rights -of -way. B. Each grantee and franchisee shall meet with the city, other grantees and franchisees and users of the rights -of -way annually or as determined by the city to schedule and coordinate construction in the rights -of -way. C. All construction locations, activities and schedules shall be coordinated, as ordered by the city engineer, to minimize public inconvenience, disruption or damages. (Ord. 692 § 6, 2001) 19.10.300 Assignments or transfers of grant. Ownership or control of a cable or telecommu- nications system, license, authorization, franchise, or lease may not, directly or indirectly, be trans- ferred, assigned or disposed of by sale, lease, merger, consolidation or other act of the grantee or franchisee, by operation of law or otherwise, with- out the prior written consent of the city, which con- sent shall not be unreasonably withheld or delayed, except as expressed by ordinance and then only on such reasonable conditions as may be prescribed therein. This obligation shall not apply to involun- tarymergers or acquisitions. 19-26 A. No authorization, franchise, lease, or other grant shall be assigned or transferred in any man- ner within 12 months after the initial grant of the authorization or franchise, unless otherwise pro- vided in the authorization or franchise agreement. B. Absent extraordinary and unforeseeable cir- cumstances, no grant, system or integral part of a system shall be assigned or transferred before con- struction of the telecommunications system has been completed. C. The grantee, franchisee, or lessee and the proposed assignee or transferee of the grant or sys- tem shall provide and certify the following infor- mation to the city not less than 150 days prior to the proposed date of transfer: 1. Complete information setting forth the nature, terms and conditions of the proposed trans- fer or assignment; 2. All information required of an authoriza- tion, franchise, or lease applicant pursuant to this title with respect to the proposed transferee or assignee; 3. Any other information reasonably required by the city; and 4. An application fee which shall be set by the city council by resolution. D. No transfer shall be approved unless the assignee or transferee has the legal, technical, financial, and other requisite qualifications to own, hold and operate the cable or telecommunications system pursuant to this title. E. Unless otherwise provided in an authoriza- tion, franchise, or lease agreement, the grantee, franchisee, or lessee shall reimburse the city for all direct and indirect costs, expenses and consultant fees reasonably incurred by the city" in considering a request to transfer or assign an authorization, franchise, or lease. No approval shall be deemed approved until all such costs and expenses have been paid. F. Any transfer or assignment of an authoriza- tion, franchise, lease, system, or integral part of a system without prior written approval of the city under this section or pursuant to an authorization, franchise, or lease agreement shall be void and is cause for revocation of the grant. (Ord. 692 § 6, 2001) 19.10.310 Transactions affecting control of grant. Any transactions which singularly or collec- tively result in a change of 50 percent or more of the ownership or working control of the grantee, fran- chisee, lessee, of the ownership or working control Medina Municipal Code 19.10.350 of a cable or telecommunications system, of the ownership or working control of affiliated entities having ownership or working control of the grantee, franchisee, or lessee or of a telecommuni- cations system, or of control of the capacity or bandwidth of the grantee, franchisee, or lessee's ca- ble or telecommunication system, facilities or sub- stantial parts thereof, shall be considered an assignment or transfer requiring city approval pur- suant to MMC 19.10.300. Transactions between af- filiated entities are not exempt from city approval. A grantee, franchisee, or lessee shall promptly no- tify the city prior to any proposed change in, or transfer of, or acquisition by any other party of con- trol of a grantee, franchisee, or lessee's company. Every change, transfer, or acquisition of control of a grantee, franchisee, or lessee's company shall cause a review of the proposed transfer. In the event that the city adopts a resolution or other appropriate order denying its consent and such change, transfer or acquisition of control has been effected, the city may cancel the authorization, franchise, or lease. Approval shall not be required for mortgaging pur- poses or if said transfer is from a grantee, franchi- see, or lessee to another person or entity controlling, controlled by, or under common con- trol with a grantee, franchisee, or lessee. (Ord. 692 § 6, 2001) 19.10.320 Revocation or termination of grant. An authorization, franchise, or lease granted by the city to use or occupy rights -of -way of the city or city property may be revoked for the following reasons: A. Construction or operation in the city or in the rights -of -way of the city or upon city property without a grant of authority from an authorization, franchise, or lease; B. Construction or operation at an unauthorized location; C. Unauthorized substantial transfer of control of a grantee, franchisee or lessee; D. Unauthorized assignment of an authoriza- tion, franchise or lease; E. Unauthorized sale, assignment or transfer of a grantee, franchisee, or lessee's authorization, franchise, lease, assets, or a substantial interest therein; F. Misrepresentation by or on behalf of a grantee, franchisee, or lessee in any application or written or oral statement upon which the city relies in making the decision to grant, review or amend any authorization, franchise, or lease pursuant to this title; 19-27 G. Abandonment of cable or telecommunica- tions facilities in the rights -of -way or upon city property; H. Failure to relocate or remove facilities as required in this title; I. Failure to pay taxes, compensation, fees or costs when and as due the city; J. Insolvency or bankruptcy of the grantee, franchisee, or lessee; K. Violation of any material provision of this title; and L. Violation of the material terms of an authori- zation, franchise, or lease agreement. (Ord. 692 § 6, 2001) 19.10.330 Notice and duty to cure. In the event that the city believes that grounds exist for revocation of an authorization, franchise, or lease, the grantee, franchisee, or lessee shall be given written notice of the apparent violation or noncompliance, providing a short and concise statement of the nature and general facts of the vio- lation or noncompliance, and providing the grantee, franchisee, or lessee a reasonable period of time not exceeding 30 days to furnish evidence: A. That corrective action has been, or is being actively and expeditiously pursued, to remedy the violation or noncompliance; B. That rebuts the alleged violation or noncom- pliance; and C. That it would be in the public interest to impose some penalty or sanction less than revoca- tion. (Ord. 692 § 6, 2001) 19.10.340 Hearing. In the event that a grantee, franchisee, or lessee fails to provide evidence reasonably satisfactory to the city as provided in MMC 19.10.330, the city shall refer the apparent violation or noncompliance to the city council. The city council shall provide the grantee, franchisee, or lessee with notice and a reasonable opportunity to be heard concerning the matter. (Ord. 692 § 6, 2001) 19.10.350 Standards for revocation or lesser sanctions. If the city council determines that a grantee, fran- chisee, or lessee willfully violated or failed to com- ply with any of the provisions of this title or an authorization, franchise, or lease granted under this title, or through willful misconduct or gross negli- gence failed to heed or comply with any notice given the grantee, franchisee, or lessee by the city under the provisions of this title, then the grantee, 19.10.360 franchisee, or lessee shall, at the election of the city council, forfeit all rights conferred hereunder and the authorization, franchise, or lease may be re- voked or annulled by the city council. The city council may elect, in lieu of the above and without any prejudice to any of its other legal rights and remedies, to pursue other remedies, including ob- taining an order from the superior court having ju- risdiction compelling the grantee, franchisee, or lessee to comply with the provisions of this title and any authorization, franchise, or lease granted here- under, and to recover damages and costs incurred by the city by reason of the grantee, franchisee, or lessee's failure to comply. The city council shall utilize the following factors in analyzing the nature, circumstances, extent, and gravity of the violation and in making its determination under this section: A. Whether the misconduct was egregious; B. Whether substantial harm resulted; C. Whether the violation was intentional; D. Whether there is a history of prior violations of the same or other requirements; E. Whether there is a history of overall compli- ance; and F. Whether the violation was voluntarily dis- closed, admitted or cured. (Ord. 692 § 6, 2001) 19.10.360 Incorporation by reference. The provisions of this title shall be incorporated by reference in any authorization, franchise, or lease approved hereunder. Failure to so incorporate by reference shall not affect the binding effect of the provisions of this title. However, in the event of any conflict between the proposal, this title, and the authorization, franchise, or lease, the authoriza- tion, franchise, or lease shall be the prevailing doc- ument. (Ord. 692 § 6, 2001) 19.10.370 Notice of entry on private property. If directed by the city, at least 24 hours prior to entering private property or streets or public ease- ments adjacent to or on such private property to per- form new construction or reconstruction, a notice indicating the nature and location of the work to be performed shall be physically posted, at no expense to the city, upon the affected property by the grantee or franchisee. A door hanger may be used to comply with the notice and posting requirements of this section. A grantee or franchisee shall make a good faith effort to comply with the property owner/resident's preferences, if any, on location or placement of underground installations (excluding aerial cable lines utilizing existing poles and exist- ing cable paths), consistent with sound engineering 19-28 practices; provided, however, that nothing in this chapter shall permit a grantee or franchisee to un- lawfully enter or construct improvements upon the property or premises of another. Underground in- stallations on private property shall be located such as to not kill or damage significant trees as defined in this code. (Ord. 692 § 6, 2001) 19.10.380 Safety requirements. A grantee, franchisee, or lessee, in accordance with applicable federal, state, and local safety requirements shall, at all times, employ ordinary care and shall install and maintain and use com- monly accepted methods and devices for prevent- ing failures and accidents which are likely to cause damage, injury, or nuisance to the public and/or workers. All structures and all lines, equipment and connections in, over, under, and upon the streets, sidewalks, alleys, and rights -of -way or places of a permit, franchise, or lease area, wherever situated or located, shall at all times be kept and maintained in a safe, suitable condition, and in good order and repair. The city reserves the general right to see that the system of a grantee, franchisee, or lessee is constructed and maintained in a safe condition. If a violation of the National Electrical Safety Code or other applicable regulation is found to exist by the city, the city will, after discussions with a grantee, franchisee, or lessee, establish a reasonable time for a grantee, franchisee, or lessee to make neces- sary repairs. If the repairs are not made within the established time frame, the city may make the repairs itself or have them made and collect all rea- sonable costs thereof from a grantee, franchisee, or lessee. (Ord. 692 § 6, 2001) 19.10.390 Most favored community. In the event that a grantee, franchisee, or lessee enters into any agreement, franchise or other understanding with any other city, town or county in the state of Washington which provides terms or conditions more favorable to the city, town or county than those provided in its agreement with the city, such as, but not limited to, free or reduced fee hookups, access or service, the city shall be entitled to request at the city's option, and the grantee, franchisee, or lessee in question shall be required to execute, an amendment to its agree- ment which incorporates the more favorable terms and conditions. (Ord. 692 § 6, 2001) Medina Municipal Code 19.12.030 19.10.400 Relationship with WUTC proceedings. If grantee shall file, pursuant to Chapter 80.28 RCW, with the Washington Utilities and Transpor- tation Commission (or such other regulatory agency having jurisdiction) any tariff affecting the city's rights under its grant or franchise or relating to charges for facility relocations, the provider shall give the city manager written notice thereof within five days of the date of such filing. If, during the term of this grant or franchise, grantee shall file and the Washington Utilities and Transportation Commission (or such other regulatory agency hav- ing jurisdiction) shall permit to become effective, a schedule or tariff which conflicts with or is incon- sistent with any portion of this grant or franchise, the city may, within 30 days of the effective date of such schedule or tariff, notify grantee in writing that the franchise is terminated, effective on receipt of the notice. Thereafter, the city and grantee shall conduct negotiations concerning the terms and conditions of a new franchise, at reasonable times, in a reasonable manner, in good faith and with due regard to all pertinent facts and circumstances. (Ord. 692 § 6, 2001) 19-29 Chapter 19.12 CONSTRUCTION STANDARDS Sections: 19.12.010 General construction standards. 19.12.020 Construction codes. 19.12.030 Construction permits. 19.12.040 Applications. 19.12.050 Engineer's certification. 19.12.060 Traffic control plan. 19.12.070 Issuance of permit. 19.12.080 Compliance with permit. 19.12.090 Display of permit. 19.12.100 Survey of underground facilities. 19.12.110 Noncomplying work. 19.12.120 Completion of construction. 19.12.130 As -built drawings. 19.12.140 Restoration after construction. 19.12.150 Landscape restoration. 19.12.160 Construction surety. 19.12.170 Exceptions. 19.12.180 Responsibilities of the owner. 19.12.190 Use permit. 19.12.010 General construction standards. Notwithstanding any other provision of this code, no person shall commence or continue with the construction, installation, maintenance, or repair of cable or telecommunications facilities within rights -of -way of the city or upon city -owned property, except as provided in this chapter. At the discretion of the city, directional drilling or boring may be required as opposed to cuts or trenches. (Ord. 692 § 7, 2001) 19.12.020 Construction codes. Cable and telecommunications facilities shall be constructed, installed, operated, and maintained in accordance with all applicable federal, state and local codes, rules and regulations, including the city of Medina right-of-way construction require- ments, latest edition. (Ord. 692 § 7, 2001) 19.12.030 Construction permits. No person shall construct, install, repair, or maintain any cable or telecommunications facili- ties within the rights -of -way of the city or upon city property without first obtaining the appropriate construction permit therefor; provided, however: A. No permit shall be issued for the construc- tion or installation of cable or telecommunications facilities without payment of any applicable con- struction permit fee; and 19.12.040 B. No permit shall be issued for the construction or installation of telecommunications or other equipment on city property unless the telecommu- nications carrier or provider has applied for and re- ceived a facilities lease from the city. The city council reserves unto itself the sole discretion to lease city property for telecommunications and other facilities, and no vested or other rights shall be created by this section or any provision of this title applicable to such facilities leases. (Ord. 692 § 7, 2001) 19.12.040 Applications. Applications for permits to construct cable or telecommunications facilities shall be submitted to the city building permit coordinator and shall be accompanied by drawings, plans and specifications in sufficient detail to demonstrate: A. That the facilities will be constructed in accordance with the Washington State Department of Transportation Standard Specifications for Road, Bridge and Municipal Construction, latest edition, and all applicable codes, rules and regula- tions; B. The location and route of all facilities to be installed on existing utility poles; C. The location, route, and configuration of all facilities to be located under the surface of the ground, including the line and grade proposed for the burial at all points along the route which are within the rights -of -way; D. The location of all existing underground utilities, conduits, ducts, pipes, mains, and installa- tions which are within the rights -of -way along the underground route proposed by the applicant; E. The location of all other facilities to be con- structed within the city, but not within the rights - of -way; F. The construction methods to be employed for protection of existing structures, fixtures, streets and facilities within or adjacent to the rights -of - way; G. The location, dimension and types of all trees within or adjacent to the rights -of -way along the route proposed by the applicant, together with a landscape plan for protecting, trimming, remov- ing, replacing and restoring any trees or areas to be disturbed during construction; H. Proposed construction schedule and work hours; and I. The location of all survey monuments which may be displaced or disturbed by the proposed con- struction. (Ord. 692 § 7, 2001) 19-30 19.12.050 Engineer's certification. Where required by the city engineer, permit ap- plications shall be accompanied by drawings, plans and specifications bearing the certification of a reg- istered professional engineer. (Ord. 692 § 7, 2001) 19.12.060 Traffic control plan. All permit applications which involve work on, in, under, across, or along any rights -of -way shall be accompanied by a traffic control plan demon- strating the protective measures and devices that will be employed, consistent with the Manual of Uniform Traffic Control Devices, latest edition, to prevent injury or damage to persons or property and to minimize disruptions to efficient pedestrian and vehicular traffic. (Ord. 692 § 7, 2001) 19.12.070 Issuance of permit. After submission of all plans and documents required of the applicant and payment of the permit fees required by this title, the city engineer, if sat- isfied that the applications, plans and documents comply with all requirements of this title, shall issue a permit authorizing construction of the facil- ities,. subject to such further conditions, restrictions or regulations affecting the time, place and manner of performing the work as he or she may deem nec- essary or appropriate. (Ord. 692 § 7, 2001) 19.12.080 Compliance with permit. All construction practices and activities shall be in accordance with the permit and approved final plans and specifications for the facilities. The city engineer and his or her representatives shall be pro- vided access to the work and such further informa- tion as he or she may require to ensure compliance with such requirements. (Ord. 692 § 7, 2001) 19.12.090 Display of permit. The pem- ittee shall maintain a copy of the con- struction permit and approved plans at the con- struction site, which shall be displayed and made available for inspection by the city engineer or his or her representatives at all times when construc- tion work is occurring. (Ord. 692 § 7, 2001) 19.12.100 Survey of underground facilities. If the construction permit specifies the location of facilities by depth, line, grade, proximity to other facilities or other standard, the permittee shall cause the location of such facilities to be ver- ified by a state registered land surveyor. The per- mittee may be required to relocate any facilities Medina Municipal Code 19.12.190 which are not located in compliance with permit requirements. (Ord. 692 § 7, 2001) 19.12.110 Noncomplying work. Upon order of the city engineer, all work which does not comply with the permit, the approved plans and specifications for the work, or the requirements of this chapter, shall be remedied or removed. (Ord. 692 § 7, 2001) 19.12.120 Completion of construction. The permittee shall promptly complete all con- struction activities so as to minimize disruption of the public and other ways and other public and pri- vate property. All construction work authorized by a permit within public and other ways, including restoration, must be completed within 120 days of the date of issuance. (Ord. 692 § 7, 2001) 19.12.130 As -built drawings. Within 60 days after completion of construction, the permittee shall furnish the city with two com- plete sets of plans, drawn to scale and certified to the city as accurately depicting the horizontal and vertical location and configuration of all cable or telecommunications facilities constructed pursuant to the permit. The city engineer shall have the dis- cretion to prescribe the format and/or media of said as -built drawings, consistent with city codes and policies. (Ord. 692 § 7, 2001) 19.12.140 Restoration after construction. Upon completion of any construction, mainte- nance, or repair work, the permittee shall promptly repair any and all public and private property im- provements, fixtures, structures, and facilities in the public or other ways or otherwise damaged dur- ing the course of construction, restoring the same as nearly as practicable to its condition before the start of construction. All survey monuments disturbed or displaced shall be referenced and replaced as re- quired by Chapter 332-120 WAC and city policy. The referencing and replacement of survey monu- ments shall be performed by a licensed land sur- veyor. The city engineer shall have final approval of the completeness of all restoration work and all permittees shall warrant said restoration work for a period of one year. (Ord. 692 § 7, 2001) 19.12.150 Landscape restoration. A. All trees, landscaping and grounds removed, damaged or disturbed as a result of the construc- tion, installation, maintenance, repair, or replace- ment of cable or telecommunications facilities, 19-31 whether such work is done pursuant to a franchise, permit, or lease shall be replaced or restored as nearly as may be practicable, to the condition exist- ing prior to performance of work. B. All landscape restoration work within the rights -of -way shall be done in accordance with landscape plans approved by the city landscape architect. (Ord. 692 § 7, 2001) 19.12.160 Construction surety. Prior to issuance of a construction permit, the permittee shall provide a performance bond, as provided in MMC 19.10.280. (Ord. 692. § 7, 2001) 19.12.170 Exceptions. Unless otherwise provided in an authorization, franchise, or lease agreement, all cable operators and telecommunications carriers are subject to the requirements of this title. (Ord. 692 § 7, 2001) 19.12.180 Responsibilities of the owner. The owner of the facilities to be constructed and, if different, the grantee, franchisee, or lessee, are responsible for performance of and compliance with all provisions of this title. (Ord. 692 § 7, 2001) 19.12.190 Use permit. A construction permit shall be considered the equivalent of a use permit for purposes of state law (ESSB 6676, Law of 2000). (Ord. 692 § 7, 2001) EXHIBIT C Form of Transfer Agreement THIS TRANSFER AGREEMENT ("Agreement") is made this , 20_, by and between: 1. PARTIES. 1.1 1.2 1.3 RECITALS day of City of Medina, a legal subdivision of the state of Washington ("City'). WHEREAS the City has issued Franchisee, which was authorized on the pursuant to Ordinance No. ; and ("Franchisee"). ("Transferee"). a single Franchise (the "Franchise") to day of , 20 , WHEREAS Franchisee has reached an agreement with Transferee on a (describe transaction, example: conveyance of benefited property) with Transferee, to (example: acquire from Franchisee its facilities and equipment located in the Right -of - Way) and WHEREAS Franchisee and Transferee have requested that the City approve a transfer of the Franchise from Franchisee to Transferee; and WHEREAS, as a result of the transfer of the Franchise, Transferee shall assume all rights, duties, and obligations that Franchisee has under the Franchise, shall be responsible for full compliance with the Franchise, and shall meet or exceed all applicable and lawful federal, state, and local requirements; and WHEREAS, relying on the representations made by the Transferee and Franchisee, the City, on the _ day of , 20_, has, pursuant to Resolution No. and the Franchise, approved the transfer upon the terms and conditions as stated herein; NOW, THEREFORE, in consideration of the City's approval of the transfer, subject to the terms and conditions of this Agreement, THE PARTIES DO HEREBY AGREE as follows: 2. TRANSFER. Transfer of the Franchise shall be effective upon the following conditions precedent: 2.1 Receipt by the City of the fully executed acceptance of franchise and performance guarantee attached hereto as Exhibit C-1, together with all required certificates of insurance, a security fund, and a performance bond; 2.2 Payment to the City of the Direct Costs of processing the Transfer; and 2.3 The date of closing of the sale/conveyance of the property benefited by this Franchise and/or the Telecommunications Facilities located in the Franchise Area, or the date mutually agreed to by the City, Franchisee and Transferee as follows: , whichever occurs first. 3. ACCEPTANCE OF FRANCHISE OBLIGATIONS. 3.1 Franchisee agrees that neither the Transfer nor the City's approval of this Agreement shall in any respect relieve Franchisee, or any of its successors in interest, of any obligation or liability arising from acts or omissions occurring prior to the Transfer of the Franchise, whether known or unknown, or the consequences thereof. 3.2 The Transfer is not intended and shall not be construed to authorize Franchisee to take any position or exercise any right that could not have been exercised prior to the Transfer. 3.3 Notwithstanding anything to the contrary herein, Transferee shall not be responsible for any of Franchisee's financial liabilities and obligations under the Franchise or pursuant to the City code, rules, and regulations that accrued before the Transfer of the Franchise. 3.4 The City waives none of its rights with respect to Franchisee's or Transferee's compliance with the terms, conditions, requirements, and obligations as set forth in the Franchise. The City's approval of this Agreement shall in no way be deemed a representation by the City that Franchisee is in compliance with all of Franchisee's obligations under the Franchise. 3.5 Franchisee and Transferee acknowledge and agree that the City's approval and acceptance of this Agreement and the resulting Transfer is made in reliance upon the representations, documents, and information provided by Franchisee and Transferee in connection with the request for transfer. 4. MISCELLANEOUS PROVISIONS. 4.1 Conditions Precedent. The Agreement shall be effective and binding upon the signatories once it has been signed by all signatories; provided that, within 30 days of execution of the Agreement by all of the signatories, Transferee shall provide the City 45. with the following: (1) all Direct Costs required for this Transfer; (2) its acceptance of the Franchise in substantially the form of the document attached as Exhibit C-1; (3) its insurance certificate in conformance with the requirements of the Franchise; and (4) a performance bond or cash deposit in conformance with the requirements of the Franchise. 4.2 Entire Agreement. The Agreement constitutes the entire agreement of the Parties with respect to the matters addressed herein. No statements, promises, or inducements inconsistent with the Agreement made by any Party shall be valid or binding unless in writing and executed by all Parties. 4.3 Binding Acceptance. The Agreement shall bind and benefit the Parties hereto and their respective heirs, beneficiaries, administrators, executors, receivers, trustees, successors, and assigns, and the promises and obligations herein shall survive the expiration date hereof. Any purported transfer of the Agreement is void without the express written consent of the signatories. 4.4 Severability. In the event that the Agreement shall, to any extent, be held to be invalid, preempted, or unenforceable, the remainder hereof shall be valid in all other respects and continue to be effective. 4.5 Defined Terms. Terms not defined in this Agreement shall have the same meaning as given in the Franchise. 4.6 Governing Law. The Agreement shall be governed in all respects by the laws of the state of Washington. IN WITNESS WHEREOF the Parties hereto have executed this Agreement as of the day and year first written above. CITY FRANCHISEE By: Donna Hansen, City Manager By: Title: TRANSFEREE By:'_ Title: 46. TRANSFER EXHIBIT C-1 Acceptance of Franchise and Performance Guarantee Franchise issued pursuant to Ordinance No. and accepted 20 ; Transfer authorized pursuant to Resolution No. , effective M( I, , am the and (am the authorized representative to) accept the above -referenced Franchise on behalf of I certify that this Franchise and all terms and conditions thereof are accepted by without qualification or reservation and that unconditionally guarantee(s) performance of all such terms and conditions. DATED this day of 120 Tax Payer ID# STATE OF ss. CITY OF By Its I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it (as the of , a corporation,) to be the free and voluntary act of such corporation/individual for the uses and purposes mentioned in the instrument. Dated this day of , (Signature of Notary) 47. Print Name Notary public in and for the state of residing at My appointment expires Acceptance of Franchise Franchise issued pursuapt to Ordinance No. I, 1&4 s �-ern am the , and (am the authorized representative to) accept the above -referenced Fraiichise on behalf of d/_ . I certify }at this Franchise and all terms and conditions thereof ar accep ed by -f `C, without qualification or reservation and that C unconditionally guarantee(s) performance of all such terms and conditions. DATED this day of f , 20j. Tax Payer ID# STATE OF tQ ey4J, Ca,,,,Cv ,, ss. CITY OF I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was aulhorized to execute the instrument and acknowledged it (as the �F,,.� ✓� ofa �— corporation,) to be the free and voluntaryact of such corporation/individual for the uses and purposes mentioned in the instrument. Dated this � "-day ofu�ar JILL HOUSE OUSE NOTARY PUBLIC Wake County North Carolina Commission Expires Jan.1, 2D12 of Notary) Print Name Notary public in and for the state of /Jv44-\ Cam residing at , &r tti" My appointment expires I `t �- 49. Environmental Indemnity 1. Duty to Indemnify/Release/Defend. Franchisee assumes the risk that Hazardous Substances or other adverse matters may affect the Franchise Area that were not revealed by Franchisee inspection, and indemnifies, holds harmless, and hereby waives, releases and discharges forever the City and City's officers, employees and agents (collectively, "Indemnitees") from any and all present or future claims or demands, and any and all damages, losses, injuries, liabilities, causes of actions (including, without limitation, causes of action in tort) costs and expenses (including, without limitation, fines, penalties, judgments, and attorneys' fees) of any and every kind or character, known or unknown, which Franchisee might have asserted or alleged against Indemnitees arising from or in any way related to the Condition of the Franchise Area or alleged presence, use, storage, generation, manufacture, transport, release, leak, spill, disposal or other handling of any Hazardous Substances in, on or under the Franchise Area (the "Franchisee Losses"). Franchisee Losses shall include, without limitation, (a) the cost of any investigation, removal, or Remedial Action (defined below) that is required by any Environmental Law, that is required by judicial order or by order of or agreement with any governmental authority, or that is necessary or otherwise is reasonable under the circumstances, (b) losses for injury or death of any person caused by the Condition of the Franchise Area, and (c) losses arising under any Environmental Law -enacted-after fine --date -hereof. - Except- --as -may- be --limited below;- Franchisee-L--osses - - - specifically include losses sustained by Franchisee as a result of any obligation of Franchisee to remove, close, Remediate, reimburse or take other actions required by any governmental agency concerning any Hazardous Substances on the Franchise Area. Notwithstanding the above, Franchisee Losses waived, released, and discharged hereunder by Franchisee shall not include losses as a result of releases or contamination caused by the acts of the City after the Effective Date. The rights, duties and obligations of the City and Franchisee pursuant Sections 2 and 3 herein apply to the duty to indemnify and defend as provided in this Section 1. 2. Discovery Within Franchise Area. In the event that the Work of Franchisee in, on, and upon the Franchise Area results in the discovery of the presence of Hazardous Substances ("Discovered Matters") in, on or upon the areas excavated or otherwise opened or exposed by Franchisee within the Franchise Area (the "Excavated Areas"), Franchisee shall immediately notify the City and take whatever other reporting action is required by applicable Environmental Law as it relates to the Discovered Matters in the Excavated Areas. In the event that, as a result of such discovery, an agency with jurisdiction to address Hazardous Substances in, on or upon the Franchise Area (`Environmental Authority") orders, obtains a judgment or court order requiring, or otherwise exercises its authority to require Remedial Actions to be taken by the City or Franchisee, or Franchisee decides, to undertake Remedial Actions independently or enter into a consent order or consent decree with an Environmental Authority, then in such event, Franchisee agrees to indemnify, defend, and hold the City harmless from and against the cost of all Remedial Actions which are required by the Environmental 50. Authority within the Excavated Areas under the applicable Environmental Laws with respect to the Discovered Matters; provided, however, the City, subject to the provisions of Section 3 below, shall be solely responsible for all necessary Remedial Actions which are required by the Environmental Authority within other portions of the Franchise Area (outside the Excavated Areas) under the applicable Environmental Laws with respect to the Discovered Matters. 3 Release by Franchisee. In the event Franchisee's Work, in, on or upon the Franchise Area within the Excavated Areas results in a release (as determined under applicable Environmental Laws) of Hazardous Substances which were, before such activities, confined to areas within the Excavated Areas, but which after such activities by Franchisee are released beyond the Excavated Areas, and if the release is caused in whole or in part by Franchisee, then Franchisee shall indemnify, defend and hold the City harmless from the costs of all necessary Remedial Actions which are required under the applicable Environmental Laws, to the extent of Franchisee's share of the liability for the release. Franchisee's liability for the release may, inter alia, be determined by Franchisee's admission of the same, or as determined by a final non -appealable decision by a court of competent jurisdiction, or as provided in a final non -appealable administrative order issued by the Environmental Authority, or by a consent decree entered by Franchisee and the Environmental Authority. 51. Insurance Requirements 1 General Requirement. Commencing upon issuance of the first Site Specific Permit under this Franchise, Franchisee must have adequate insurance at all times while Franchisee owns or operates Telecommunications Facilities in the Right -of -Way, to protect the City against claims for death or injuries to Persons or damages to property or equipment which in any way relate to, arise from or are connected with this Franchise or Site Specific Permit, or involve the Telecommunications Facilities, Franchisee, its agents, representatives, contractors, subcontractors and their employees. 2 Minimum Insurance Limits. Franchisee shall maintain the following minimum insurance coverages and limits: 2.1 Commercial General Liability insurance to cover liability, bodily injury, and property damage. The Commercial General Liability insurance shall be written on an occurrence basis, with an aggregate limit location endorsement for the Franchise Area, and shall provide coverage for any and all costs, including defense costs, and losses and damages resulting from personal injury, bodily injury and death, property damage, products liability and completed operations. Such insurance shall include broad form and blanket contractual coverage, including coverage for the Franchise as now or hereafter amended and specific coverage for the indemnity provisions set forth herein. Coverage must be written with the following limits of liability: $5,000,000 for bodily injury or death to each person; $5,000,000 for property damage resulting form any one accident; $5,000,000 for all other types of liability; and $3,000,000 for premises -operations, explosions and collapse hazard, underground hazard and products completed hazard; 2.2 Automobile Liability shall include owned, hired, and non -owned vehicles on an occurrence basis with coverage of at least $3,000,000 per occurrence; 2.3 Workers Compensation Insurance: shall be maintained during the life of this Franchise to comply with statutory limits for all employees, and in the case any work is sublet, Franchisee shall require its contractors and subcontractors similarly to provide workers' compensation insurance for all the employees. Franchisee shall also maintain, during the life of this policy, employer's liability insurance with limits of $1,000,000 each occurrence; 2.4 Excess or Umbrella Liability: $5,000,000 each occurrence and $5,000,000 policy limit; and 2.5 Pollution Legal Liability Insurance: $5,000,000 per occurrence and $10,000,000 in the aggregate (at the option of the City). 52. Endorsements. 3.1 Franchisee's insurance coverage shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of Franchisee's insurance and shall not contribute to it. 3.2 Franchisee, through policy endorsement, shall waive its rights of subrogation against the City for all claims and suits. 3.3 Coverage shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability. 3.4 Franchisee's insurance shall name the City as an additional insured, and other Persons to whom the City is obligated under separate agreement or by Law, to protect or insure as an additional insured, from and against Liabilities arising out of Work performed in the Right -of -Way under a grant of authority of the City. 3.5 Franchisee's insurance shall include a requirement that the "railroad exclusion" be deleted or may include, in the alternative, ISO endorsement CG 2417. 3.6 Franchisee shall request from its insurance provider that the insurance coverages and limits provided herein shall not be canceled or reduced, nor the intention not to renew be stated so as to be out of compliance with the requirements herein without sixty (60) days written notice, certified mail, return receipt requested, first being given to the City. If the insurance is canceled or reduced in coverage, Franchisee shall provide a replacement policy. ATC shall request from its insurance provider that each policy contain the following endorsement: It is hereby understood and agreed that this policy may not be canceled nor the intention not to renew be stated until 60 days after receipt by the City, by registered mail, of a written notice addressed to the City Manager of such intent to cancel or not to renew. 4. Acceptability of Insurers. Each insurance policy obtained pursuant to this Franchise shall be issued by financially sound insurers who may lawfully do business in the State of Washington with a financial strength rating at all times during coverage of no less than an "A' and in a financial size category of no less than "X", in the latest edition of "Best's Rating Guide" published by A.M. Best Company. In the event that at any time during coverage, the insurer does not meet the foregoing standards, Franchisee shall give prompt notice to the City and shall seek coverage from an insurer that meets the foregoing standards. The City reserves the right to change the rating or the rating guide depending upon the changed risks or availability of other suitable and reliable rating guides. 5. Verification of Coverage. Franchisee shall furnish the City with signed certificates of insurance and a copy of the amendatory endorsements, including, but not 53. necessarily limited to, the additional insured endorsement, evidencing the Automobile Liability, Commercial General Liability and Umbrella or Excess insurance of Franchisee upon acceptance of this Franchise. The certificate for each insurance policy is to be signed by a Person authorized by that insurer to bind coverage on its behalf. The certificate for each insurance policy must be on standard forms or on such forms as are consistent with standard industry practices. Franchisee hereby warrants that its insurance policies satisfy the requirements of this Franchise. 6. Deductible. Commercial General Liability Insurance policies and coverage required herein may include a reasonable deductible not to exceed 10% of the minimum per occurrence commercial general liablity policy limits; provided, however, that if Franchisee elects to include any deductible, Franchisee shall itself directly cover, in lieu of insurance, any and all City Liabilities that would otherwise in accordance with the provisions of this Franchise be covered by Franchisee insurance if Franchisee elected not to include a deductible. Such direct coverage by Franchisee shall be in an amount equal to the amount of Franchisee's actual deductible. 7. No Limitation. Franchisee's maintenance of insurance policies required by this Franchise shall not be construed to excuse unfaithful performance by Franchisee or limit the liability of Franchisee to the coverage provided in the insurance policies, or otherwise limit the City's recourse to any other remedy available at law or in equity. 8. Modifications of Coverages and Limits. The City reserves the right, during the term of the Franchise, to require any other insurance coverage or adjust the policy limits as it deems reasonably necessary utilizing sound risk management practices and principals based upon the loss exposures; provided that the City may not require other insurance limits or change the policy limits for Franchisee unless the City contemporaneously makes comparable changes to the insurance requirements for other franchisees with comparable franchises, services and installations in the Right -of -Way. Prior to imposing such additional coverage or adjusting existing required coverages or limits, the City shall provide reasonable notice to Franchisee and an opportunity to provide comments, and the City shall review and consider such comments that are timely made. 9. Public Franchisees. Franchisee Commercial General Liability, Automobile Liablity and Umbrella Coverage Insurance policies and coverage required herein for Public Franchisees may include a reasonable self -insured retention; provided, however, that as to any self -insured retention, Franchisee shall itself directly cover, in lieu of insurance, any and all City liabilities that would otherwise in accordance with the provisions of this Franchise be covered by Franchisee insurance if Franchisee elected not to include a self -insured retention. Such direct coverage by Franchisee shall be in an amount equal to the amount of Franchisee's actual self -insured retention. "Public Franchisee" for purposes of this Section 9 shall mean and include, any Franchisee organized as a political subdivision of the state of Washington, but shall not mean or include agents, contractors and subcontractors of Franchisee that are not also organized 54. as political subdivisions. Franchisee shall be required to provide verification of self- insurance retention coverage in a form and content acceptable to the City. 55. la I: Financial Security Franchisee shall comply with the financial security requirements set forth in Exhibit B. 56. EXHIBIT H Form of Parental Guarantee This Guaranty is made on the date set forth below by SpectraSite Communications, LLC, a Delaware limited liability company (hereinafter referred to as the "Guarantor"). RECITALS: WHEREAS, ATC Outdoor DAS, LLC, a Delaware limited liability company, with a principal place of business at 116 Huntington Ave. 11t' Floor, Boston, MA 02116, ("Franchisee") is a directly held, wholly -owned subsidiary of the Guarantor; and WHEREAS, Franchisee and the City of Medina (the "City"), have entered into a Franchise Agreement (the "Franchise") dated , 2011; and WHEREAS, the Franchise requires Guarantor to guaranty the observance, fulfillment and performance of Franchisee's obligations under the Franchise; NOW, THEREFORE, in partial consideration of the City's grant of the Franchise Agreement to Franchisee, and in addition to other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Guarantor hereby agrees to the following: TERMS: 1. Guarantor guarantees to the City the observance, fulfillment and performance by Franchisee of each and every obligation of Franchisee in the Franchise, except to the extent that any such provision or obligation is unenforceable under applicable law (the "Guaranty"). 2. The Guaranty shall continue in full force and effect until the City releases the Guarantor from its obligations under this Guaranty, Franchisee Transfers all of its Telecommunications Facilities to a third person pursuant to Section 2.7 of the Franchise; provided that such third person is not an Affiliate of Guarantor, Franchisee abandons its Telecommunications Facilities in place pursuant to Section 7.14 of the Franchise, Franchisee removes all of its Telecommunications Facilities from the Right -of -Way, or otherwise by operation of Law or contract. In no event shall the Guaranty extend beyond the Term of the Franchise Agreement. 3. This Guaranty shall be governed by and construed in accordance with the Laws of the State of Washington. 4. If any provision of this Guaranty is determined to be illegal, invalid , or unconstitutional by any court of competent jurisdiction or by any state or federal regulatory authority having jurisdiction, then such determination shall have no effect on the validity of any other provision of this Guaranty unless to do so would be inequitable or would result in a material change in the rights and/or obligations of any Party hereunder, in which case the Parties shall reform this Guaranty using the process set forth in Section 3.5 of the Franchise. IN WITNESS WHEREOF, the Guarantor has caused the Guaranty to be executed by its duly authorized representative on the date set forth below. BY:� ....�. NAME: Steven C. Marshall TITLE: Executive Vice President and President, U.S. Tower Division DATE: COMMONWEALTH OF MASSACHUSETTS I ss. COUNTY OF ESSEX On this day of ft,n,L^f 4 , 2011, before me, the undersigned notary public, personally appeared Steven C. Marshaft, as Executive Vice President and President, U.S. Tower Division for SpectraSite Communications, LLC, proved to me through satisfactory evidence of identification, which were kj)o".!/1 , to be the person whose name is signed on the preceding or attached document, and acknowledged to me that he signed it voluntarily for its stated purpose. � j r C F - Pa Aw i (Signat o Notary) T(t S, i �� Print Name Notary public in and for the Commonwealth of Massachusetts My commission expires 3 o2Ul Proved as to fbrI' : nericen TCVW L4961 W.e�i1.1rr� Contractor/Subcontractor Insurance Requirements 1 General Requirement. Prior to commencing and during the period of Work performed within the Franchise Area, Franchisee contractors and subcontractors (hereafter the "Contractors") must have in place adequate insurance to protect the City against claims for death or injuries to Persons or damages to property or equipment which in any way relate to, arise from or are connected with such Work. 2 Minimum Insurance Limits. The Contractors shall maintain the following minimum insurance coverages and limits: 2.1 Commercial General Liability: insurance to cover liability, bodily injury, and property damage. The Commercial General Liability insurance shall be written on an occurrence basis, with an aggregate limit location endorsement for the Franchise Area, and shall provide coverage for any and all costs, including defense costs, and losses and damages resulting from personal injury, bodily injury and death, property damage, products liability and completed operations. Coverage must be written with the following limits of liability: $1,000,000 per occurrence; $2,000,000 general aggregate; and $1,000,000 products/completed operations aggregate. 2.2 Automobile Liability shall include owned, hired, and non -owned vehicles on an occurrence basis with coverage of at least $1,000,000 per occurrence. 2.3 Workers Compensation Insurance: shall be maintained during the period of such Work to comply with statutory limits for all employees. Endorsements. 3.1 The Contractor's insurance coverage shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of the Contractor's insurance and shall not contribute to it. 3.2 Contractor, through policy endorsement, shall waive its rights of subrogation against the City for all claims and suits. 3.3 That the coverage shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability. 3.4 The Contractor's insurance shall name the City as an additional insured, and other Persons to whom the City is obligated under separate agreement or by 59. Law, to protect or insure as an additional insured, from and against Liabilities arising out of Work performed in the Right -of -Way under a grant of authority of the City. 3.5 The Contractor's insurance shall include a requirement that the "railroad exclusion" be deleted or may include, in the alternative, ISO endorsement CG 2417. 3.6 The insurance coverages and limits provided herein shall not be canceled or reduced, nor the intention not to renew be stated so as to be out of compliance with the requirements herein without thirty (30) days written notice, certified mail, return receipt requested, first being given to the City. If the insurance is canceled or reduced in coverage, Franchisee shall provide a replacement policy. 4 Acceptability of Insurers. Each insurance policy required herein shall be issued by financially sound insurers who may lawfully do business in the State of Washington with a financial strength rating at all times during coverage of no less than an "A-" and in a financial size category of no less than "IX", in the latest edition of `Best's Rating Guide" published by A.M. Best Company. In the event that at any time during coverage, the insurer does not meet the foregoing standards, Contractor shall give prompt notice to the City and shall seek coverage from an insurer that meets the foregoing standards. The City reserves the right to change the rating or the rating guide depending upon the changed risks or availability of other suitable and reliable rating guides. 5 Verification of Coverage. Franchisee shall furnish the City with Contractors' signed certificates of insurance and a copy of the amendatory endorsements, including, but not necessarily limited to, the additional insured endorsement, evidencing the Automobile Liability, and Commercial General Liability policies of the Contractors. The certificate for each insurance policy is to be signed by a Person authorized by that insurer to bind coverage on its behalf. The certificate for each insurance policy must be on standard forms or on such forms as are consistent with standard industry practices. 6 Deductible. Commercial General Liability Insurance policies and coverage required herein may include a reasonable deductible not to exceed % of the minimum per occurrence commercial general liablity policy limits; provided, however, that if Contractor elects to include any deductible, Contractor shall itself directly cover, in lieu of insurance, any and all City Liabilities that would otherwise in accordance with the provisions of these requirements be covered by Contactors insurance if Contractor elected not to include a deductible. Such direct coverage by Contractor shall be in an amount equal to the amount of Contractor's actual deductible. 7 No Limitation. Contractor's maintenance of insurance policies required by herein shall not be construed to excuse unfaithful performance by Franchisee or limit the liability of Franchisee or Contractor to the coverage provided in the insurance policies, or otherwise limit the City's recourse to any other remedy available at law or in equity. 8 Modifications of Coverages and Limits. The City reserves the right, during the term of the Franchise, to require any other insurance coverage or adjust the roll) policy limits as it deems reasonably necessary utilizing sound risk management practices and principals based upon the loss exposures; provided that the City may not require other insurance limits or change the policy limits for Franchisee's Contractors and/or Subcontractors unless the City contemporaneously makes comparable changes to the insurance requirements for other franchisee's with comparable franchises, services and installations in the Right -of -Way. Prior to imposing such additional coverage or adjusting existing required coverages or limits, the City shall provide reasonable notice to Franchisee and an opportunity to provide comments, and the City shall review and consider such comments that are timely made. 61. DATE (MM/DDIYYYY) CC 'Q> CERTIFICATE OF LIABILITY INSURANCE 1 2/3/2011 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). CONTACT PRODUCER Wells Fargo Insurance Services USA, Inc. PHONE AIC No FAX C 699 Boylston Street, 6th Floor EMAIL ADDRESS: Boston, MA 02116 PRODUCER AME82345 r11cTnMFR In It INSURED INSURERA: Liberty Mutual Insurance Co. 23043 American Tower Corporation INSURER B : Great American Assurance Company 26344 116 Huntington Ave INSURER C : American International Specialty Lines Ins. Co. 26883 E: Boston, MA 02116 kit iIu RFR• See below COVERAGES GEKIII-IGAIt_ IS TO CERTIFY THAT THE POLICIES NOTWITHSTANDING ANY REQUIREMENT, MAY BE ISSUED OR MAY PERTAIN, AND CONDITIONS OF SUCH POLICIES, TYPE OF INSURANCE OF INSURANCE ADDL INS THE SUBR NUmGCrc: ------- LISTED BELOW HAVE BEEN TERM OR CONDITION OF ANY INSURANCE AFFORDED BY THE LIMITS SHOWN MAY HAVE BEEN REDUCED POLICY NUMBER ISSUED TO CONTRACT POLICIES BY PAID POLICY EFF MMIDDIYYYY THE INSURED OR OTHER DOCUMENT DESCRIBED CLAIMS. POLICY EXP MM/DDIYYYY 12/01/11 — NAMED ABOVE FOR THE POLICY PERIOD WITH RESPECT TO WHICH THIS HEREIN IS SUBJECT TO ALL THE TERMS, LIMITS THIS INDICATED. CERTIFICATE EXCLUSIONS ILTR $ 1,000,000 A GENERAL LIABILITY X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE a OCCUR X TB7-611-260127-030 12/01/10 CH CCURRENCE EAO DAMAGE TO RENTED PREMISES Ea occurrence 1,000,000 $ _ MED EXP (Any one person) $ 10,000 PERSONAL & ADV INJURY $ 1,000,000 GENERAL AGGREGATE $ 2,000,000 PRODUCTS - COMP/OP AGG $ 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRO- X LOC POLICY AUTOMOBILE LIABILITY X AS7-611-260127-020 12/1/10 12/1l11 COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 A BODILY INJURY (Per person) $ X ANY AUTO BODILY INJURY (Per accident) $ ALL OWNED AUTOS PROPERTY DAMAGE (Per accident) $ SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS B X UMBRELLA LIAB EXCESS LIAB X OCCUR CLAIMS -MADE X UMB2098582 12/1/10 1211/11 EACH OCCURRENCE $ 5,000,000 AGGREGATE $ 5.0001000 DEDUCTIBLE RETENTION $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICERIMEMBER EXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below Pollution Liability NIA WA7-61 D-260127-040 (AOS) WC7-611-260127-010 (OR, W PLS 8088059 12,01/10 12/01/10 07/25/10 12/01/11 12 07/25/11 WC STATU- OTH- X A A E.L. EACH ACCIDENT $ 1,000,000 E.L. DISEASE - EA EMPLOYE $ 1,000,000 E.L. DISEASE - POLICY LIMIT Each IncidenUAgg $1,000,000 $ 1,000,000 C DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) City of Medina is included as additional insured with the respect to the operations of the named insured. M City of Medina 333 S. Meridian Medina, WA 98371 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE nf1�wT1A\I A11 . e.kf. rnc.-A ACORD 25 (2009/09) The ACORD name and logo are registered marks of ACORD Bond No. BMN 1880043 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS, that we, American Tower Corporation as Principal, and The Hanover Insurance Company a corporation organized and existing under the laws of the State of New Hampshire and authorized to do business in the State of Washington, as Surety, are held and firmly bound unto City of Medina as Obligee, in the penal sum of $50,000 (fifty thousand dollars) Lawful money of the United States of America, to the payment of which, well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the City of Medina has approved the tower communications facility site plan of American Tower Corporation, subject to the filing of a bond guaranteeing completion in accordance with the approved site plan for: 'MEDINA - NODE 1 344020 2850-2864 76th Ave NE Medina 1Jashtngton 47,63 j _1222 MEDINA - NODE 10 449 _ _. 8001-8611 NE 7th St Medlna Win shln ton � 47.61 ( _1222 MEDINA - NODE 2 344929 1761-811 Overiake Dr E Madina Washington 47 61 -122.2 MEDINA - NODE 3 34p1 - • _. 2221 76th Ave NE 11819 761h Ave NE _ Medina Medlna 1 ashington Washington ( 47 63 47.62 122.2 i MEOiNA - NODE 4 MEDINA -NODE 5 344931 3gg932 i1304 1306 761h Ave NE _ _. Medina tiNashingtan r { 47.82 _122.2 _ 122.2 NODE 6 : 44933 601-605 76th Ave NE Medina Washtngien I. 47 61 F -122.2 ,MEDINA- ;MEDINA - NODE 7 44934 8000 8024 NE 8th St Medina �Nashington { 47.61 _ 122.2 MEDINA- NODE 8 4493 8819 8899NE 2nd PI _ Medina Washington__ j 47 617 .122.22 MEDINA - NODE 9 444936 ,8801-8809 NE 10th Sl Medina Washington 47.61 f -122.2 NOW THEREFORE, if the said Principal shall complete the site facility (1) in accordance with plans and engineer's certification, (2) that Principal shall comply with all terms of the agreement with regard to removal of partially completed and/or nonconforming telecommunications facilities and restoration of the right-of-ways of the city and city -owned property to its preconstruction condition, then this obligation shall be void; otherwise to remain in full force and effect until 60 days after completion. Signed, sealed and dated this 9"' day of February, 2011. This bond is to be effective for the period of February 4, 2011 to February 4, 2012. AMERI�ArOWERS, IN By. THE HANOV INSURA OMPANY By yn Co or, Attorney -in- act THE HANOVER INSURANCE COMPANY MASSACHUSETTS BAY INSURANCE COMPANY CITIZENS INSURANCE COMPANY OF AMERICA POWERS OF ATTORNEY CERTIFIED COPY KNOW ALL MEN BY THESE PRESENTS: That THE HANOVER INSURANCE COMPANY and MASSACHUSETTS BAY INSURANCE COMPANY, both being corporations organized and existing under the laws of the State of New Hampshire, and CITIZENS INSURANCE COMPANY OF AMERICA, a corporation organized and existing under the laws of the State of Michigan, do hereby constitute and appoint Eva M. Durkin, Donna M. Fennell, Kristen Baez and/or Evelyn O'Connor of Boston, MA and each Is a true and lawful Attorneys) -in -fact to sign, execute, seal, acknowledge and deliver for, and on its behalf, and as its act and deed any place within the United States, or, if the following line be filled In, only within the area therein designated any and all bonds, recognizances, undertakings, contracts of indemnity or other writings obligatory in the nature thereof, as follows: Any such obligations in the United States, not to exceed One Million and Noi100 ($1,000,000) in any single Instance and said companies hereby ratify and confirm all and whatsoever said Attorneys) -in -tact may lawfully do in the premises by virtue of these presents. These appointments are made under and by authority of the following Resolution passed by the Board of Directors of said Companies which resolutions are still In effect: "RESOLVED, That the President or any Vice President, in conjunction with any Assistant Vice President, be and they are hereby authorized and empowered to appoint Attorneys -In -fact of the Company, in its name and as its acts, to execute and acknowledge for and on its behalf as Surety any and all bonds, recognizances, contracts of indemnity, waivers of citation and all other writings obligatory In the nature thereof, with power to attach thereto the seal of the Company. Any such writings so executed by such Attorneys -in -fact shall be as binding upon the Company as If they had been duly executed and acknowledged by the regularly elected officers of the Company in their own proper persons" (Adopted October 7, 1981 - The Hanover Insurance Company; Adopted April 14,1982 — Massachusetts Bay insurance Company; Adopted September 7, 2001 - Citizens Insurance Company of America) IN WITNESS WHEREOF, THE HANOVER INSURANCE COMPANY, MASSACHUSETTS BAY INSURANCE COMPANY and CITIZENS INSURANCE COMPANY OF AMERICA have caused these presents to be sealed with their respective corporate seals, duly attested by a Vice President and an Assistant Vice President, this 28th day of January 2011. t � 4 THE COMMONWEALTH OF MASSACHUSETTS ) COUNTY OF WORCESTER ) SS. THE HANOVER INSURANCE COMPANY MASSACHUSETTS BAY INSURANCE COMPANY CIT12E SURANCE COMPANY OF AMERICA Mary Joanna 4d11r on, Vice Pre_Sldiqpt Robert K. Grennan, Assistan(0ico President On this 28th day of January 2011, before me came the above named Vice President and Assistant Vice President of The Hanover Insurance Company, Massachusetts Bay Insurance Company and Citizens Insurance Company of America, to me personally known to be the individuals and officers described herein, and acknowledged that the seals affixed to the preceding instrument are the corporate seals of The Hanover Insurance Company Massachusetts Bay insurance Company and Citizens Insurance Company of America, respectively, and that the said corporate seals and their signatures as officers were duly affixed and subscribed to said instrument by the authority and direction of said Corporations. UMNUNIrkwtuac ��a Nofelypollc ww.�+wa.cq+nar�sor My commission expires on November 3, 2011 1, the undersigned Assistant Vice President of The Hanover Insurance Company, Massachusetts Bay Insurance Company and Citizens Insurance Company of America, hereby certify that the above and foregoing is a full, true and correct copy of the Original Power of Attorney issued by said Companies, and do hereby further certify that the said Powers of Attorney are still in force and effect. This Certificate may be signed by facsimile under and by authority of the following resolution of the Board of Directors of The Hanover Insurance Company, Massachusetts Bay Insurance Company and Citizens insurance Company of America. "RESOLVED, That any and all Powers of Attorney and Certified Copies of such Powers of Attorney and certification in respect thereto, granted and executed by the President or any Vice President in conjunction with any Assistant Vice President of the Company, shall be binding on the Company to the same extent as if all signatures therein were manually affixed, even though one or more of any such signatures thereon may be facsimile." (Adopted October 7. 1981 - The Hanover Insurance Company; Adopted April 14, 1982 Massachusetts Bay Insurance Company; Adopted September 7, 2001 - Citizens Insurance Company of America) / GIVEN under my hand and the seals of said Companies, at Worcester, Massachusetts, this - day of r('6i rsu , 20 /( . THE HANOVER INSURANCE COMPANY MASSACHUSETTS BAY INSURANCE COMPANY CITIUNS INSU CE C ANY OF ERICA rzA, Srepp i3reul , ssisfa r Ica Pies n! 8398 NORTHEAST 12 STREET I P.O. BOX 144 1 MEDINA, WA 98039-0144 TELEPHONE 425.233.6400 1 FAX 425.451.8197 1 www.medina-wa.gov January 26, 2011 ATC Outdoor DAS, LLC American Tower Corporation Attn: Alexander P. Gamota 10 Presidential Way Woburn, MA 01801 Re: Franchise Agreement — Ordinance No. 863 - Acceptance Dear Mr. Gamota: The purpose of this letter agreement (the "Letter Agreement") is to express our mutual understanding of the effect of Section 4.1 and 4.2 of the franchise agreement (City Ordinance No. 863) passed and approved by the Medina City Council. As you are aware, the City and ATC Outdoor DAS, LLC ("ATC") had mutually agreed that after passage of the ordinance on November 8, 2010, certain clerical errors within the franchise ordinance would need to be corrected before the final ordinance could be prepared for attestation by the City Clerk and the Mayor's signature and prior to formal written acceptance by ATC. However, the clerical errors were not completed until the 14`Y' day of January, thus delaying formal written acceptance of the franchise agreement by ATC beyond the 30 period set forth at section 4.1 of the franchise agreement. We believe that the parties are in agreement that any delay in formal written acceptance of the franchise agreement by ATC was due to circumstances beyond its control and that such failure to timely accept the franchise is excused by the provisions of Section 8.15 (Force Majeure) of the franchise agreement. Thus, ATC is not in violation of the provisions of section 4.1 of the franchise requiring written acceptance within 30 days following passage and approval of the franchise ordinance. Further, we believe that the parties are in agreement that, for purposes of the provisions of section 4.2 of the franchise providing that failure timely file acceptance will result in the franchise being deemed void, the written acceptance that has been, or will contemporaneously herewith be, filed with the City Clerk, will deemed by the City and ATC Outdoor DAS, LLC, to have been timely filed. If you are in agreement with the foregoing, please have the appropriate person on behalf of ATC execute the acceptance below. • Page 2 January 26, 2011 Youp truly, Donna Hanson City Manager City of Medina 4, Acc pted and agreed to by ATC Outdoor DAS, LLC on this day of 2011. ATC Outdoor DAS, LLC: -t- K 5� , '- Print ame: yQ,,r. Title:UP l Mailing Address: ATC Outdoor DAS, LLC Attn: Alex Gamota 116 Huntington Ave. Boston, MA 02116 CITY OF MEDINA Ordinance No. 863 AN ORDINANCE OF THE CITY OF MEDINA, WASHINGTON, GRANTING A NONEXCLUSIVE TELECOMMUNICATIONS FRANCHISE TO CONSTRUCT AND OPERATE A DISTRIBUTED ANTENNA SYSTEM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, the Right -of -Way within the City of Medina ("City") belong to the public and are built and maintained at public expense for the use of the general public, the primary purpose of which is public travel, and must be managed and controlled consistent with that intent; and WHEREAS, ATC Outdoor DAS, LLC ("ATC") has made application to the City of Medina for a telecommunications franchise to construct, install, maintain, repair and operate a Distributed Antenna System to provide telecommunications services using the Right -of -Way; and WHEREAS, ATC represents that it desires to install and operate telecommunications facilities, within the meaning of Medina Municipal Code Section 19.02.020 (Exhibit B), within Medina; and WHEREAS, based on representations and information provided by ATC, and in response to its request for the grant of a franchise, the City Council has determined that the grant of a nonexclusive franchise, on the terms and conditions herein and subject to applicable law, are consistent with the public interest; and WHEREAS, the City is authorized by applicable law to grant such a nonexclusive franchises within the boundaries of the City; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Grant of Franchise. The City of Medina hereby grants to ATC Outdoor DAS, LLC a nonexclusive telecommunications franchise to construct and operate a distributed antenna system, which Franchise Agreement shall read as follows: 1. TABLE OF CONTENTS. ARTICLE 1. DEFINITIONS ARTICLE 2. FRANCHISE GRANT 2.1 Right -of -Way Use Authorized 2.2 Authorized Services 2.3 No rights shall pass to Franchisee by implication 2.4 Interest in the Ri t-of-Way 2.5 Condition of Franchise Area 2.6 Franchise Nonexclusive 2.7 Transfer 2.8 Street Vacation 2.9 Reservation of City Use of Ri t-of-Way ARTICLE 3. COMPLIANCE WITH LAWS/ORDER OF PRECEDENCE 3.1 Compliance with Laws 3.2 Police Powers 3.3 Alteration of Material Terms and Conditions 3.4 Reservation of Rights/Wavier 3.5 Subsequent Action 3.6 Change in Form of Government 3.7 Relationship to MMC ARTICLE 4. ACCEPTANCE 4.1 4.2 Acceptance Failure to Timely File Acceptance 4.3 Effective Date; Term 4.4 Effect of Acceptance 4.5 Effect of Expiration/Termination 4.6 Renewal ARTICLE 5. PROTECTION OF THE CITY AND PUBLIC 5.1 Indemnification 5.2 Environmental Indemnity - Attached Exhibit E 5.3 Insurance Requirements - Attached Exhibit F 5.4 Financial Security - Attached Exhibit G 5.5 Parental Guarantee - Attached Exhibit H 5.6 Contractors/Subcontractors - Attached Exhibit I 5.7 Liens 5.8 Financial Conditions 2. ARTICLE 6. ENFORCEMENT AND REMEDIES. 6.1 Communication and Discussion 6.2 Breach/Right to Cure 6.3 Remedies 6.4 Revocation 6.5 Assessment of Liquidated Damages 6.6 Receivership ARTICLE 7. GENERAL CONDITIONS UPON USE OF RIGHT-OF-WAY 7.1 Conditions Precedent to Work 7.2 Compliance with Standards/Codes 7.3 Undergrounding Requirements 7.4 Work in the Ri t-of-Way 7.5 Alterations 7.6 General Conditions 7.7 Telecommunications Facility Relocation at Request of the City for Public Improvements 7.8 Movement of Telecommunications Facilities for Others 7.9 Movement of Telecommunications Facilities During Emergencies 7.10 Record of Installations 7.11 Restoration of Right -of -Way, Public and Private Property 7.12 Approvals 7.13 Abandonment of Telecommunications Facilities 7.14 Relationship to MMC ARTICLE 8. MISCELLANEOUS 8.1 Headings 8.2 Entire Agreement 8.3 Incorporation of Exhibits 8.4 Calculation of Time 8.5 Time Limits Strictly Construed 8.6 No Joint Venture 8.7 Approval AuthoritX 8.8 Binding Effect upon Successors and Assigns 8.9 Waiver 8.10 Severabilitv 8.11 Signs 8.12 Discriminatory Practices Prohibited 8.13 Notice 8.14 Survival of Terms 8.15 Force Majeure 8.16 Attorne. s' Fees 8.17 Venue/Choice of Law a 8.18 Publication EXHIBITS: A. Map Depicting Franchise Area B. Medina Municipal Code Title 19 C. Form of Transfer Agreement C-1. Acceptance of Franchise and Performance Guarantee D. Acceptance of Franchise E. Environmental Indemnity F. Insurance Requirements G. Financial Security H. Form of Parental Guarantee I. Contractor/Subcontractor Insurance Requirements ARTICLE 1. DEFINITIONS For the purposes of this Franchise and the Exhibits attached hereto, the following terms, phrases, words and their derivations where capitalized shall have the meanings given herein. Words not defined herein shall have the meaning given in Medina Municipal Code ("MMC") Title 19 (as set forth in Exhibit B hereto). Words not defined herein or in MMC Title 19 (Exhibit B), shall have the meaning given in MMC Chapter 17.90. Words not defined herein or in MMC Title 19 (Exhibit B) or MMC Chapter 17.90 shall have the same meaning given pursuant to such federal or state statutes, rules, or regulations that apply to and regulate the services provided by Franchisee. Words not otherwise defined shall be given their common and ordinary meaning. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural. The word "shall" is always mandatory and not merely directory. References to governmental entities (whether persons or entities) refer to those entities or their successors in authority. If specific provisions of law, regulation or rule referred to herein be renumbered, then the reference shall be read to refer to the renumbered provision. "Breach" shall mean any failure of a Party to keep, observe, or perform any of its duties or obligations under this Franchise. "City" shall mean the City of Medina. "Construct", "Constructing" or "Construction" shall mean to construct, reconstruct, install, reinstall, align, realign, locate, relocate, adjust, affix, attach, remove, or support. "Direct Costs" shall mean and include all costs and expenses incurred by the City directly related to a particular activity or activities set forth in this Franchise, including by way of example: 4. i. All costs and expenses of materials, equipment, supplies, utilities, consumables, goods and other items used or incorporated in connection with and in furtherance of the activity or activities set forth in this Franchise and any taxes, insurance, and interest expenses related thereto, including costs for crews and equipment; ii. All costs and expenses of labor inclusive of payroll benefits, non- productive time and overhead for each of the labor classifications of the employees performing work for the activity or activities set forth in this Franchise and determined in accordance with the City's ordinary governmental accounting procedures; and iii. All costs and expenses to the City for any Work performed by consultants or contractors to the extent performed for a particular activity or activities set forth in this Franchise, including by way of example and not limitation, engineering and legal services. "Dispute" shall mean a question or controversy that arises between the Parties concerning the observance, performance, interpretation or implementation of any of the terms, provisions, or conditions contained in this Franchise or the rights or obligations of either Party under this Franchise. "DAS" or "Distributed Antenna System" means a network comprised of small, spatially separated, low -power antennas referred to as "nodes", connected to a "central hub" by "fiber optic cable" or other transport medium. "Effective Date" shall mean and refer to that term as it is defined at Section 4.3 herein. "Emergency" shall, in addition to the meaning given pursuant to MMC Section 19.02.020 in Exhibit B, mean and refer to a sudden condition or set of circumstances that significantly disrupts or interrupts the operation of Telecommunications Facilities in the Right -of -Way and Franchisee's ability to continue to provide services if immediate action is not taken. "Environmental Law(s)" means any federal, state or local statute, regulation, code, rule, ordinance, order, judgment, decree, injunction or common law pertaining in any way to the protection of human health or the environment, including without limitation, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, the Compensation and Liability Act, the Toxic Substances Control Act, and any similar or comparable state or local law. "Franchisee" shall mean ATC Outdoor DAS, LLC, and any of its Affiliates. "Franchise Ordinance" shall mean this Ordinance setting forth the terms and conditions upon which Franchisee shall be granted a Franchise. "Franchise Area" shall mean the area identified in Exhibit A. If, as a consequence of the Special Use Permit process for Franchisee's Facilities, Franchisee is a not permitted to locate its Facilities exactly as shown on Exhibit A, the Parties agree automatically, with no further action required by either Party, to substitute as part of this Franchise a revised Exhibit A identifying as the Franchise Area the locations for which Franchisee successfully obtains Special Use Permit approval to construct its Facilities. "Hazardous Substance" means any hazardous, toxic, radioactive or infectious substance, material or waste as defined, listed or regulated under any Environmental Law, and any element, compound, mixture, solution, particle, or substance which presents danger or potential danger for damage or injury to health, welfare, or to the environment, including, but not limited to: those substances which are inherently or potentially radioactive, explosive, ignitable, corrosive, reactive, carcinogenic, or toxic; those substances which have been recognized as dangerous or potentially dangerous to health, welfare, or to the environment by any federal, municipal, state, City, or other governmental or quasi -governmental authority, and/or any department or agency thereof; those substances which use, or have a component thereof or therein which uses, asbestos or lead -based paint; and petroleum oil and any of its fractions. "Law(s)" shall mean all present and future applicable laws, ordinances, rules, regulations, resolutions, permits, environmental standards, orders, decrees and requirements of all federal, state, City and municipal governments, the departments, bureaus or commissions thereof, government authorities, boards or officers, any national or local board of fire underwriters, or any other governmental body or bodies exercising similar functions having or acquiring jurisdiction over all or any part of the Telecommunications Facilities, including the City acting in its governmental capacity. References to Laws shall be interpreted broadly to cover government actions, however nominated. "Legal action" shall mean filing a lawsuit or invoking the right to arbitration. "Noticed Party" shall mean the Party in receipt of notice that it is in Breach. "Party(ies)" shall mean either the City or Franchisee or both. "Public Works Director" means and refers to the Public Works Director for the City or his or her designee, or such officer or person who has been assigned the duties of Public Works Director or his or her designee. "Regulatory Permit" means a construction permit issued pursuant to MMC Chapter 19.12 that provides specific requirements and conditions for Work to Construct Telecommunications Facilities within the Right -of -Way, and any other permit required pursuant to the Medina Municipal Code to perform the proposed work within the Right - of -Way including a special use permit, building permit, street cut permit, or clearing and grading permit. "Remedy", "Remediate" and "Remedial Action" shall have the same meaning as these are given under the Model Toxics Control Act (Chapter 70.105D RCW) and its implementing regulations at Chapter 173-340 WAC. rol "Right -of -Way" shall have that meaning given pursuant to MMC Chapter 19.02 in Exhibit B; provided that, it shall not include railroad rights -of -way, airports, harbor areas, buildings, parks, and other such similar facilities or property owned, maintained or leased by the City in its governmental or proprietary capacity or as an operator of a utility. "Standards" shall mean those standards and codes set forth in Section 7.2 of this Franchise. "Telecommunications" is the transmission of information by wire, radio, optical cable, electromagnetic, or other similar means. As used in this definition, "information" means knowledge or intelligence represented by any form of writing, signs, signals, pictures, sounds, or any other symbols. "Telecommunications Facilities" shall have the same meaning given pursuant MMC Chapter 19.02 in Exhibit B, and by way of further clarification, shall mean and include any part or all of the facilities, equipment and appurtenances of Franchisee, whether underground or overhead, located within the Right -of -Way as part of Franchisee's Distributed Antenna System, including by way of example and not limitation, radios, amplifiers, optical converters, multiplexers, antennas, nodes, innerducts, pedestals, boxes, cabinets, coax cable trays, primary and auxiliary power supplies, power meters, support structures, foundations, mounting hardware, cases, pipes, lines, fiber, equipment, equipment cabinets and shelters, vaults, conductors, poles, carriers, drains, vents, guy wires, encasements, sleeves, valves, wires, supports, towers, anchors, transmitters, receivers, and signage. "Transfer" shall mean any transaction in which all or a portion of the Telecommunications Facilities are sold, leased or assigned (except a sale or transfer that results in removal of a particular portion of the Telecommunications Facilities from the Right -of -Way), or any transaction in which all or a portion of the the rights and/or obligations held by Franchisee under the Franchise are transferred, sold, assigned, or leased, in whole or in part, directly or indirectly, to another Person. A transfer of control of an operator shall not constitute a transfer as long as the same person continues to hold the Franchise both before and after the transfer of control. Notwithstanding the foregoing, an agreement with a third party Telecommunications service provider to utilize the Telecommunications Facilities shall not constitute a Transfer under this Franchise. "Work" shall mean any and all activities of Franchisee, or its officers, directors, employees, agents, contractors, subcontractors, volunteers, invitees, or licensees, within the Right -of -Way to Construct the Telecommunications Facilities. ARTICLE 2. FRANCHISE GRANT 2.1 Right -of -Way Use Authorized. Subject to the terms and conditions of this Franchise, the City hereby grants to Franchisee a nonexclusive Franchise authorizing 7. Franchisee to Construct and operate Telecommunications Facilities in, along, among, upon, across, above, over, and under the Right -of -Ways located within the Franchise Area. Further, this Franchise incorporates by reference the provisions of MMC Title 19 as in effect on the Effective Date of this Franchise, a copy of which is attached hereto as Exhibit B; provided that, in the case of conflict between this Franchise and any term or provision in Exhibit B or any future term or provision of the Medina Municipal Code, the conflict shall be resolved as provided in Exhibit B (see e.g., MMC Sections 19.06.040and 19.10.360). Notwithstanding the foregoing, the Parties acknowledge that the City may hereafter modify MMC Title 19 and those modification may apply to this Franchise as provided in Section 3.3. 2.2 Authorized Services. The grant given herein expressly authorizes Franchisee to Construct, install, maintain, repair and operate a Distributed Antenna System to provide Telecommunications services. This authorization is limited and is not intended nor shall it be construed as granting Franchisee or any other Person the right, duty or privilege to use its Telecommunications Facilities or the Right -of -Way to provide services not specifically authorized therein. This Franchise shall not be interpreted to prevent the City from lawfully imposing additional conditions, including additional compensation conditions for use of the Right -of -Way, should Franchisee provide service other than Telecommunications service. Specifically, this grant does not include the authorization to provide Cable Service. However, this Franchise shall not be read as a concession by Franchisee that it needs authorization to provide any services not otherwise authorized herein. 2.3 No Rights Shall Pass to Franchisee by Implication. No rights shall pass to Franchisee by implication. Without limiting the foregoing and by way of example, this Franchise shall not include or be a substitute for: 2.3.1 Any other authorization required for the privilege of transacting and carrying on a business within the City that may be lawfully required by the Laws of the City; 2.3.2 Any agreement or authorization required by the City for Right -of - Way users in connection with operations on or in Right -of -Way or public property including, by way of example and not limitation, a utility permit; or 2.3.3 Any licenses, leases, easements or other agreements for occupying any other property or infrastructure of the City or other Persons to which access is not specifically granted by this Franchise including, without limitation, agreements for placing devices on poles, light standards, in conduits, in vaults, in or on pipelines, or in or on other structures or public buildings. 2.3.4 Any permits or other authorizations that may be required under the land use code and development regulations of the City for the construction of Telecommunications Facilities within a particular zoning district in the City, including by way of example and not limitation, a conditional use permit or a variance. 2.4 Interest in the Right -of -Way. This Franchise shall not operate or be construed to convey title, equitable or legal, in the Right -of -Way to Franchisee. No reference herein to a Right -of -Way shall be deemed to be a representation or guarantee by the City that its interest, or other right to control the use of such Right -of -Way, is sufficient to grant its use for such purposes. This Franchise shall be deemed to grant no more than those rights which the City may have the undisputed right and power to give. The grant given herein does not confer rights other than as expressly provided in the grant hereof and is subject to the limitations in applicable Law. Such right may not be subdivided or subleased to a person other than Franchisee. Franchisee acknowledges that, where City has an ownership interest in a Franchise Area, that ownership interest may be a determinable fee, a public Right -of - Way dedication, or a Right -of -Way easement, which may terminate when City either: (i) ceases to use that Right -of -Way for Right -of -Way purposes; or (ii) uses such Right -of - Way for purposes found to be inconsistent with use of the Right -of -Way for Right -of - Way purposes, and that in such circumstances, City's right to franchise or grant the use of any such Right -of -Way, or rights under any franchise of any such Right -of -Way, may be subject to termination as of the date the circumstances set forth in either (i) or (ii) above (unless Franchisee improves the quality of title to the applicable Franchise Area, or acquiring additional property interests from other Persons). Franchisee also acknowledges that, where City has ownership rights, those ownership rights may terminate for other reasons, such as a street vacation. Franchisee further acknowledges that Franchisee's rights under this Franchise as to any Franchise Area are subject and subordinate to all outstanding rights and encumbrances on City's Right -of -Way, and any easements, other Franchise Agreements, licenses, permits or agreements in effect on or before the Effective Date. City therefore grants to Franchisee no more right, title and interest in any Right -of -Way than the City holds in such Right -of - Way at the time of grant, and Franchisee hereby releases City from any and all liability, cost, loss, damage or expense in connection with any claims that City lacked sufficient legal title or other authority to convey the rights described herein. In case of eviction of Franchisee or Franchisee's contractors by anyone owning or claiming title to, or any interest in the Franchise Area, City shall not be liable to Franchisee or Franchisee's Contractors for any costs, losses or damages of any Party. CITY DOES NOT WARRANT ITS TITLE OR PROPERTY INTEREST IN OR TO ANY FRANCHISE AREA NOR UNDERTAKE TO DEFEND FRANCHISEE IN THE PEACEABLE POSSESSION OR USE THEREOF. NO COVENANT OF QUIET ENJOYMENT IS MADE. 2.5 Condition of Franchise Area. Franchisee has inspected or will inspect Franchise Area, and enters upon each such Franchise Area with knowledge of its physical condition and the danger inherent in operations conducted in, on or near any Franchise Area. FRANCHISEE ACCEPTS THE FRANCHISE AREA IN AN "AS -IS WITH ALL FAULTS" BASIS, WITH ANY AND ALL PATENT AND LATENT DEFECTS, AND a IS NOT RELYING ON ANY REPRESENTATION OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY KIND WHATSOEVER FROM THE CITY AS TO ANY MATTERS CONCERNING THE FRANCHISE AREA, including, but not limited to the physical condition of the Franchise Area; zoning status; presence and location of existing utilities; operating history; compliance by the Franchise Area with Environmental Laws or other Laws and other requirements applicable to the Franchise Area; the presence of any Hazardous Substances or wetlands, asbestos, or other environmental conditions in, on, under, or in proximity to the Franchise Area; the condition or existence of any of the above ground or underground structures or improvements, including tanks and transformers in, on or under the Franchise Area; the condition of title to the Franchise Area, and the leases, easements, Franchises, orders, licensees, or other agreements, affecting the Franchise Area (collectively, the "Condition of the Franchise Area"). Franchisee represents and warrants to the City that neither Franchisee nor its contractors or subcontractors have relied and will not rely on, and the City is not liable for or bound by, any warranties, guaranties, statements, representations or information pertaining to the Condition of the Franchise Area or relating thereto made or furnished by the City, or any agent representing or purporting to represent the City, to whomever made or given, directly or indirectly, orally or in writing. CITY HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY, WHETHER EXPRESS OR IMPLIED, AS TO THE DESIGN OR CONDITION OF THE FRANCHISE AREA, ITS MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, THE QUALITY OF THE MATERIAL OR WORKMANSHIP OF THE RIGHT-OF-WAY, OR THE CONFORMITY OF ANY PART OF THE RIGHT-OF-WAY TO ITS INTENDED USES. CITY SHALL NOT BE RESPONSIBLE TO FRANCHISEE OR ANY OF FRANCHISEE'S CONTRACTORS FOR ANY DAMAGES RELATING TO THE DESIGN, CONDITION, QUALITY, SAFETY, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY PART OF THE RIGHT-OF- WAY PRESENT ON OR CONSTITUTING ANY FRANCHISE AREA, OR THE CONFORMITY OF ANY SUCH PROPERTY TO ITS INTENDED USES. 2.6 Franchise Nonexclusive. This Franchise shall be nonexclusive, and subject to all prior rights, interests, easements, permits, franchises or licenses granted by the City to any other Person prior to the Effective Date of this Franchise to use the Right -of -Way for the purposes set forth in such authorizations, and subject to the right of the City to use the same for any purpose it deems fit, including similar purposes allowed Franchisee hereunder. Further, except as otherwise provided herein for public entities, the City may at any time grant authorization to use the Right -of -Way for any purpose that does not unreasonably interfere with Franchisee's authority under this Franchise. 2.7 Transfer. In addition to the requirements set forth in MMC Section 19.10.300 in Exhibit B, no Transfer may be approved by the City unless Franchisee has delivered to the City the transferee's written commitment, in substantially the form of the agreements attached hereto as Exhibits C and C-1, that transferee(s) shall thereafter be responsible for all obligations of Franchisee with respect to the Franchise and guaranteeing performance under the terms and conditions of the Franchise and that transferee(s) will be bound by all of the conditions of the Franchise and will assume all of 10. the obligations of its predecessor. Such a written commitment and approval of the Transfer shall relieve Franchisee of any further obligations under the Franchise, including any obligations not fulfilled by Franchisee's transferee; provided that, the Transfer shall not in any respect relieve Franchisee, or any of its successors in interest, of responsibility for acts or omissions, known or unknown, or the consequences thereof, which acts or omissions occur prior to the time of the Transfer. It is further provided that, this Franchise may not be Transferred without the transferee filing or establishing with the City the insurance certificates, security fund and performance bond required pursuant to this Franchise. Notwithstanding the foregoing, notice to the City shall not be required for a mortgage, hypothecation or an assignment of Franchisee's interest in the Franchise in order to secure indebtedness. Notwithstanding any provisions in MMC Section 19.10.300 in Exhibit B to the contrary, Franchisee may, without the prior written notice to and consent of the City: (i) lease the Telecommunications Facilities, or any portion thereof, to another Person; (ii) grant an Indefeasible Right of User Interest in the Telecommunications Facilities, or any portion thereof, to another Person; or (iii) offer or provide capacity or bandwidth in its Telecommunications Facilities to another Person; provided that, Franchisee at all times retains exclusive control over it Telecommunications Facilities and remains responsible for Constructing its Telecommunications Facilities pursuant to the terms and conditions of this Franchise; and provided further that: Franchisee may grant no rights to any such Person that are greater than any rights Franchisee has pursuant to this Franchise; such Persons shall not be construed to be a third -Party beneficiary hereunder; and, no such Person may use the Telecommunications Facilities for any purpose not authorized herein. 2.8 Street Vacation. If any Right -of -Way or portion thereof used by Franchisee is to be vacated during the term of this Franchise, unless as a condition of such vacation Franchisee is granted the right to continue its Telecommunications Facilities in the vacated Right -of -Way, Franchisee shall, without delay or expense to City, remove its Telecommunications Facilities from such Right -of -Way, and restore, repair or reconstruct the Right -of -Way where such removal has occurred, and place the Right -of -Way in the same or better condition than existed prior to Franchisee's Construction of its Telecommunications Facilities. 2.9 Reservation of City Use of Ri t-of-Way. Nothing in this Franchise shall prevent the City from: Constructing sanitary or storm sewers; grading, changing grade, paving, repairing or altering any Right -of -Way; laying down, repairing or removing water mains; or installing conduit or fiber optic cable. ARTICLE 3. COMPLIANCE WITH LAWS 3.1 Compliance with Laws. Except as otherwise provided herein, Franchisee agrees to comply with all applicable Laws as now or hereafter in effect; provided that, nothing herein shall operate as a waiver of Franchisee's right to contest the validity of such laws or the application of such Laws to Franchisee. 11. 3.2 Police Powers. Franchisee acknowledges that its rights hereunder are subject to those powers expressly reserved by the City and further are subject to the police powers of the City to adopt and enforce ordinances necessary to protect the health, safety and welfare of the public. Such powers include but are not limited to: the right to adopt and enforce applicable zoning, building, permitting and safety ordinances and regulations; the right to adopt and enforce ordinances and regulations relating to equal employment opportunities; and the right to adopt and enforce ordinances and regulations governing Work performed in the Right -of -Way. However, this Section 3.2 shall not be read or interpreted as a waiver of Franchisee's right to contest the validity of such ordinances or the application of such ordinances to Franchisee. The Parties acknowledge and agree that any Regulatory Permits for the Construction of Facilities shall be subject to the laws in effect at the time Franchisee submits a complete application for such permit. Following completion of the Construction authorized by such permit(s), the Parties agree that, if the Laws are thereafter modified such that an existing Facility becomes non -conforming, such Facilities shall be considered under the non -conforming use and structures provisions of the Medina Municipal Code (MMC Chapter 17.60). The Parties further acknowledge and agree that, any time Franchisee is doing work in the Right -of -Way, Franchisee shall comply with the applicable Medina right-of-way construction standards in effect at the time Franchisee is undertaking such work in the Medina Right -of -Way. Such standards are, upon the effective date of this Franchise, set forth in Title 12 of the Medina Municipal Code. 3.3 Alteration of Material Terms and Conditions. Subject to federal and State preemption, the material rights, benefits, obligations or duties as specified in this Franchise may not be unilaterally altered by the City through subsequent amendments to any ordinance, regulation, resolution or other enactment of the City, except within the lawful exercise of the City's police power. In the event of a unilateral alteration to this Franchise by the City pursuant to this Section, either Party may initiate renegotiation of the Franchise pursuant to Section 3.5. 3.4 Reservation of Rights/Waiver. The City shall be vested with the power and right to administer and enforce the requirements of this Franchise and the regulations and requirements of applicable Law, or to delegate that power and right, or any part thereof, to the extent permitted under Law, to any agent in the sole discretion of the City. The City expressly reserves all of its rights, authority and control arising from any relevant provisions of federal, State or local Laws granting the City rights, authority or control over the Right - of -Way or the activities of Franchisee. Except as provided herein, nothing in this Franchise shall be deemed to waive the requirements of the various codes and ordinances of the City regarding Franchises, fees to be paid or manner of Construction. Nothing in this Franchise shall be deemed to waive, and Franchisee specifically reserves the right to challenge, any City ordinance, regulation or resolution that conflicts with its rights under this Franchise. 12. 3.5 Subsequent Action. In the event that after this Franchise becomes effective, (a) there is a change in or clarification of the Law which changes, broadens or clarifies the authority or obligations of the City or Franchisee with respect to any act permitted or authorized under this Franchise, or (b) the State of Washington or any agency thereof or any agency of the Federal government requires Franchisee or the City to act in a manner which is inconsistent with any provisions of this Franchise, or (c) any term, article, section, subsection, paragraph, provision, condition, clause, sentence, or other portion of this Franchise, or its application to any person or circumstance, shall be held to be illegal, invalid or unconstitutional for any reason by any court or agency of competent jurisdiction, or (d) because of a change in circumstances, the City or Franchisee believe that amendments to this Franchise are necessary or appropriate, then the City and Franchisee agree to enter into good faith negotiations to amend this Franchise so as to enable the City and Franchisee to address, in a manner reasonably acceptable to the City and Franchisee, such change or other development which formed the basis for the negotiations. The City and Franchisee recognize that the purpose of the negotiations would be to preserve, to the maximum extent consistent with Law, the intent, scope and purpose of this Franchise. If the terms of this Franchise are materially altered due to changes in or clarifications of governing Law or due to agency rule making or other action, then the Parties shall negotiate in good faith to reconstitute this Franchise in a way consistent with then -applicable Law in a form that, to the maximum extent possible, is consistent with the original scope, intent and purpose of the City and Franchisee and preserves the benefits bargained for by each Party. 3.6 Change in Form of Government. Any change in the form of government of the City shall not affect the validity of this Franchise. Any governmental unit succeeding the City shall, without the consent of Franchisee, succeed to all of the rights and obligations of the City provided in this Franchise. 3.7 Relationship to MMC 19.10.030 and 19.10.040. ARTICLE 4. ACCEPTANCE This Article 3 supersedes MMC Sections 4.1 Acceptance. Within thirty (30) days after the passage and approval of this Franchise by the City Council, this Franchise shall be accepted by Franchisee by filing with the City Clerk during regular business hours, or such other person as may be designated by the City, three originals of this Franchise with its original signed and notarized written acceptance of all of the terms, provisions and conditions of this Franchise in conformance with Exhibit C, together with all of the following, if required herein: 4.1.1 Payment in readily available funds of the administrative costs for issuance of the Franchise in conformance with the requirements of Section 5.7 herein; 13. 4.1.2 Submission of proof of financial security in accordance with Section 5.4 herein; 4.1.3 Payment of the costs of publication of this Franchise Ordinance in conformance with the requirements of Sections 5.7 and 8.18 herein; and 4.1.4 Parental Guarantee, if required, in conformance with the requirements of Section 5.5 herein. In the event that the thirtieth day falls on a Saturday, Sunday or legal holiday during which the City is closed for business, the filing date shall fall on the last business day before such Saturday, Sunday or legal holiday. 4.2 Failure to Timely File Acceptance. Except as provided in this Section 4.2 below, the failure of Franchisee to timely file its written acceptance shall be deemed a rejection by Franchisee of this Franchise, and this Franchise shall then be void. In the event that Franchisee timely files its written acceptance but fails to timely comply with the applicable requirements of sections 4.1.1 through 4.1.4, this Franchise shall be voidable in the sole discretion of the City Manager without further action required by the City Council or the consent of Franchisee. The Franchise shall be voidable until such time as Franchisee complies with all of the applicable requirements of sections 4.1.1 through 4.1.4. No opportunity to cure or public hearing is required to void the Franchise pursuant to this Section 4.2 by giving written notice of the same to Franchisee. 4.3 Effective Date; Term. 4.3.1 Effective Date. Except as provided pursuant to Section 4.2 of this Franchise, the Effective Date of this Ordinance and franchise shall be 12:01 a.m. on the 3 1 " day following passage and approval of this Franchise by the City Council. This Franchise and the rights, privileges, and authority granted hereunder and the contractual relationship established hereby shall take effect and be in force from and after the Effective Date of this Ordinance for the term hereof. 4.3.2 Term. The term of this Franchise shall commence on the Effective Date and shall continue in full force and effect for a period of ten years, unless sooner terminated, revoked or rendered void. This Section supersedes MMC Section 19.06.060. 4.4 Effect of Acceptance. By accepting the Franchise, Franchisee: 4.4.1 Accepts and agrees to comply with and abide by all of the lawful terms and conditions of this Franchise; Franchise; 4.4.2 Acknowledges and accepts the City's legal right to grant this 14. 4.4.3 Agrees that the Franchise was granted pursuant to processes and procedures consistent with applicable Law and that it will not raise any claim to the contrary; 4.4.4 Agrees that it enters into this Franchise freely and voluntarily, without any duress or coercion, after free and full negotiations, after carefully reviewing all of the provisions, conditions and terms of this Franchise Agreement, and after consulting with counsel; 4.4.5 Acknowledges and agrees that: it has carefully read the terms and conditions of this Franchise; it unconditionally accepts all of the terms and conditions of this Franchise; it unconditionally agrees to abide by the same; it has relied upon its own investigation of all relevant facts; it has had the assistance of counsel; it was not induced to accept a Franchise; and that this Franchise represents the entire agreement between Franchisee and the City; 4.4.6 Warrants that Franchisee has full right and authority to enter into and accept this Franchisee in accordance with the terms hereof, and by entering into or performing this Franchise, Franchisee is not in violation of its charter or by-laws, or any law, regulation, or agreement by which it is bound or to which it is subject; and 4.4.7 Warrants that acceptance of this Franchise by Franchisee has been duly authorized by all requisite Board action, that the signatories for Franchisee hereto are authorized to sign the Franchise acceptance, and that the joinder or consent of any other party, including a court, trustee, or referee, is not necessary to make valid and effective the execution, delivery, and performance of this Franchise. 4.5 Effect of Expiration/Termination. Upon expiration or termination of the Franchise without renewal or other authorization, Franchisee shall no longer be authorized to operate the Telecommunications Facilities within the Franchise Area and shall, to the extent it may lawfully do so, cease operation of the Telecommunications Facilities. Forthwith thereafter, except as provided in this Section, or as otherwise provided by ordinance, Franchisee shall: (1) remove its structures or property from the Right -of -Way and restore the Right -of -Way as required pursuant to the applicable Right - of -Way restoration standards; (2) sell its Telecommunications Facilities to another entity authorized to operate Telecommunications Facilities within the Franchise Area (which may include the City) upon City approval, to the extent the City may lawfully require its approval; or (3) abandon any Telecommunications Facilities in place in the Right -of -Way upon written notice to the City of Franchisee's intent to so do. If, within ninety (90) days of the City's receipt of Franchisee's notice of abandonment, the City determines that the safety, appearance, or use of the Right -of -Way would be adversely affected, the Telecommunications Facilities must be removed by Franchisee by a date reasonably specified by the City in light of the amount of work to be performed. In the event of failure by Franchisee properly to perform such work, then the City may, after thirty (30) days written notice to Franchisee, perform the work and collect the actual and reasonable costs thereof. 15. 4.6 Renewal. This Franchise may be renewed pursuant to the renewal provisions set forth in MMC Section 19.06.120 in Exhibit B. ARTICLE 5. PROTECTION OF THE CITY AND PUBLIC 5.1 Indemnification. 5.1.1 Limitation of Liability. Franchisee hereby releases, covenants not to bring suit and agrees to indemnify, defend and hold harmless the City, its elected and appointed officials, officers, employees, agents, representatives, engineers, and consultants from any and all claims, costs, judgments, awards, or liability to any person, including claims by Franchisee's employees to which Franchisee might otherwise be immune under Title 51 RCW, arising from injury or death of any person or damage to property of which the negligent acts or omissions of Franchisee, its agents, servants, officers, or employees in performing under this Franchise are the proximate cause. Franchisee further releases, covenants not to bring suit and agrees to indemnify, defend and hold harmless the City, its elected and appointed officials, officers, employees, agents, representatives, engineers, and consultants from any and all claims, costs, judgments, awards, or liability to any person including claims by Franchisee's employees, including those claims to which Franchisee might otherwise have immunity under Title 51 RCW, arising against the City solely by virtue of the City's ownership or control of the Rights -of -Way or other public properties, by virtue of Franchisee's exercise of the rights granted herein, or by virtue of the City's permitting Franchisee's use of the City's Rights -of -Way or other public property, based upon the City's inspection or lack of inspection of work performed by Franchisee, its agents and servants, officers or employees in connection with work authorized on the City's property or property over which the City has control, pursuant to this Franchise, or pursuant to any other permit or approval issued in connection with this Franchise. This covenant of indemnification shall include, but not be limited by this reference, to claims against the City arising as a result of the negligent acts or omissions of Franchisee, its agents, servants, officers, or employees in barricading, instituting trench safety systems or providing other adequate warnings of any excavation, construction, or work in any Right - of -Way or other public place in performance of work or services permitted under this Franchise. 5.1.2 Inspection. Inspection or acceptance by the City of any work performed by Franchisee at the time of completion of Construction shall not be grounds for avoidance of any of these covenants of indemnification. 5.1.3 Compromise of Claims. Said indemnification obligations shall extend to claims which are not reduced to a suit and any claims which may be compromised prior to the culmination of any litigation or the institution of any litigation. 5.1.4 Refusal of Tender of Defense. In the event that Franchisee refuses the tender of defense in any suit or any claim, said tender having been made pursuant to the indemnification clauses contained herein, and said refusal is subsequently determined 16. by a court having jurisdiction (or such other tribunal that the Parties shall agree to decide the matter), to have been a wrongful refusal on the part of Franchisee, then Franchisee shall pay all of the City's costs for defense of the action, including all reasonable expert witness fees and reasonable attorneys' fees and the reasonable costs of the City, including reasonable attorneys' fees of recovering under this indemnification clause. 5.1.5 Concurrent Negligence. In the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of Franchisee and the City, its officers, employees and agents, Franchisee's liability hereunder shall be only to the extent of Franchisee's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes Franchisee's waiver of immunity under Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the Parties. 5.1.6 Survival. The provisions of this Section shall survive the expiration or termination of this Franchise. 5.1.7 Assumption of Risk/Waiver. Notwithstanding any other provisions of this Section, Franchisee assumes the risk of damage to any Telecommunications Facilities located in the Right -of -Way from activities conducted by the City, its officers, agents, employees, and contractors, except to the extent any such damage or destruction is caused by or arises from the negligence or any willful or malicious action on the part of the City, its officers, agents, employees, or contractors. Franchisee releases and waives any and all claims against the City, its officers, agents, employees, or contractors for damage to or destruction of any Telecommunications Facility caused by or arising out of activities conducted by the City, its officers, agents, employees, and contractors, in the Right -of -Way or other public property subject to this Franchise, except to the extent any such damage or destruction is caused by or arises from the negligence or any willful or malicious action on the part of the City, its officers, agents, employees, or contractors. Franchisee further agrees to indemnify, hold harmless and defend the City against any claims for damages, including, but not limited to, business interruption damages and lost profits, brought by or under users of Franchisee's Telecommunications Facilities or service as the result of any interruption of service due to damage or destruction of any Telecommunications Facility caused by or arising out of activities conducted by the City, its officers, agents, employees, or contractors, except to the extent any such damage or destruction is caused by or arises from the negligence or any willful or malicious actions on the part of the City, its officers, agents, employees, or contractors. 5.2 Environmental Indemnity. See attached Exhibit E. 5.3 Insurance Requirements. See Attached Exhibit F. 5.4 Financial Security. See Attached Exhibit G. 17. 5.5 Parental Guarantee. If the Franchise is wholly owned or is controlled by another Person, the City may require Franchisee to cause such Person to provide, upon acceptance of this Franchise, a guarantee by such Person of performance by Franchisee of Franchisee's rights, duties and obligations herein, in substantially the form of the parental guarantee attached hereto as Exhibit H. "Control" shall mean de jure or de facto control over Franchisee and does not necessarily imply a majority ownership of Franchisee by such Person. If Franchisee is a partnership or limited liability company or similar entity, the City may require a guarantee from the principal partners/members of the partnership, limited liability company or similar entity. 5.6 Contractors/Subcontractors. Franchisee contractors and subcontractors performing Work in the Right -of -Way shall comply with such bond, indemnity and insurance requirements as may be required by City code or regulations, or other applicable Law. If no such requirements are set forth in the City code or regulations, Franchisee contractors and subcontractors shall comply with the requirements set forth in attached Exhibit I. 5.7 Liens. In the event that any City property becomes subject to any claims for mechanics', artisans', or materialmen's liens, or other encumbrances chargeable to or through Franchisee which Franchisee does not contest in good faith, Franchisee shall promptly, and in any event within 30 days, cause such lien claim or encumbrance to be discharged or released of record (by payment, posting of bond, court deposit, or other means), without cost to the City, and shall indemnify the City against all costs and expenses (including attorneys' fees) incurred in discharging and releasing such claim of lien or encumbrance. If any such claim or encumbrance is not so discharged and released, the City may pay or secure the release or discharge thereof at the expense of Franchisee after first giving Franchisee fifteen (15) business days' advance notice of its intention to do so. Nothing herein shall preclude Franchisee's or the City's contest of a claim for lien or other encumbrance chargeable to or through Franchisee or the City, or of a contract or action upon which the same arose. 5.8 Financial Conditions. 5.8.1 Franchise Fee. The Parties understand that, upon the Effective Date of this Franchise, RCW 35.21.860 prohibited the imposition of a municipal Franchise Fee upon revenues derived from Franchisee Telephone Business Activities; however, the Parties dispute the application of this prohibition to revenues derived by Franchisee from its activities within the Public Right -of -Way. The Parties have, for good and valuable consideration the adequacy of which is hereby acknowledged, agreed that for the term of this Franchise, no franchise fees shall be due or required. 5.8.2 Reimbursement of Direct Costs of Issuance Renewal Amendment and Administration. Franchisee shall reimburse the City for the City's Direct Costs relating to the issuance, renewal, amendment (if requested by or for the benefit of Franchisee) and administration of this Franchise. a 5.8.3 Reimbursement of Direct Costs of Design Review and Inspection. City approvals and inspections, as provided for in this Franchise, are for the sole purpose of protecting the City's rights as the owner or manager of the road Right -of -Way and are separate and distinct from the approvals and inspections and fees that may be required pursuant to a Regulatory Permit. Therefore, Franchisee shall reimburse to the City its Direct Costs of approvals and inspections, to the extent that such Direct Costs are not included in the costs for issuance of and compliance with the Regulatory Permit. Approvals and inspection, by way of example and not limitation, include review of design documents and inspection for compliance with Standards and plans approved by the City. 5.8.4 Reimbursement of Direct Costs of Altering Ri t-of-Way. Franchisee shall reimburse the City for the Direct Costs incurred by the City in planning, designing, constructing, installing, repairing or altering any City infrastructure, structure, or facility as the result of the actual or proposed presence in the Right -of -Way of Franchisee's Telecommunications Facilities. Such costs and expenses shall include, but not be limited to, the Direct Costs of City personnel and contractors utilized to oversee or engage in any work in the Right -of -Way as the result of the presence of Franchisee's Telecommunications Facilities in the Right -of -Way, and any time spent reviewing construction plans in order to either accomplish the relocation of Franchisee's Telecommunications Facilities or the routing or rerouting of any public utilities or Right - of -Way so as not to interfere with Franchisee's Telecommunications Facilities. Upon request as a condition of payment by Franchisee, all billing will be itemized so as to specifically identify the Direct Costs and expenses for each project for which the City claims reimbursement. A reasonable charge for the actual cost incurred in preparing the billing may also be included in said billing. 5.8.5 Franchisee Responsibility for Costs. Except as expressly provided otherwise in this Franchise, any acts that Franchisee, its contractors or subcontractors are required to perform under this Franchise shall be performed at their sole cost and expense. 5.8.6 Franchisee Work Performed by the City. Any work performed by the City that Franchisee has failed to perform as required pursuant to this Franchise and which is performed by the City in accordance with the terms of this Franchise, shall be performed at the cost and expense of Franchisee. Franchisee shall be obligated to pay the Direct Costs to the City of performing such work. 5.8.7 Costs to be Borne by Franchisee. Franchisee shall reimburse the City for all costs of publication of this Franchise, and any notices prior to any public hearing regarding this Franchise, contemporaneous with its acceptance of this Franchise. 5.8.8 Taxes and Fees. Nothing contained in this Franchise Agreement shall exempt Franchisee from Franchisee's obligation to pay any utility tax, business tax, or ad valorem property tax, now or hereafter levied against real or personal property within the City, or against any local improvement assessment imposed on Franchisee. 19. Any fees, charges and/or fines provided for in the Medina Municipal Code or any other City ordinance, and any compensation charged and paid for the Right -of -Way, whether pecuniary or in -kind, are separate from, and additional to, any and all federal, state, local, and City taxes as may be levied, imposed or due from Franchisee. 5.8.9 Itemized Invoice. Upon request and as a condition of payment by Franchisee of Direct Costs payable by Franchisee under this Franchise, the City shall submit an itemized billing so as to specifically identify the Direct Costs incurred by the City for each project for which the City claims reimbursement. 5.8.10 Time for Payment. All non -contested Direct Costs shall be due and paid within thirty (30) days of receipt of invoice; provided that, in the event that an itemized invoice is not provided at the time of receipt of invoice and the City receives a request from Franchisee for an itemized invoice within 30 days of receipt of invoice, such amounts shall be due and paid within (30) days of receipt of the itemized invoice. 5.8.11 Overdue Payments. Any Direct Costs payable under this Franchise by Franchisee which are not paid upon the due date thereof shall bear interest at a rate of twelve (12%) percent per annum. 5.8.12 Contesting Charges. Franchisee may contest all or parts of any Direct Cost within thirty (30) days of receipt of any invoice. The City shall investigate Franchisee's contest and make appropriate adjustments to the invoice and resubmit the invoice to Franchisee. Franchisee shall pay the Direct Costs as itemized in the resubmitted invoice which shall be due within thirty (30) days of receipt of the resubmitted invoice. However, Franchisee reserves the right to further contest any charges through Legal Action. 5.8.13 Receivables. Either Party hereto may assign any monetary receivables due them under this Franchise; provided, however, such transfer shall not relieve the assignor of any of its rights or obligations under this Franchise. 5.8.14 Relationship to MMC. This Section 5.8 supersedes MMC Sections 19.06.090, 19.06.160, and 19.06.170. ARTICLE 6. ENFORCEMENT AND REMEDIES 6.1 Communication and Discussion. The Parties are fully committed to working with each other throughout the Term of this Franchise and agree to communicate regularly with each other at all times so as to avoid or minimize Disputes. The Parties agree to act in good faith to prevent and resolve potential sources of conflict before they escalate into a Dispute. The Parties each commit to resolving a Dispute in an amicable, professional and expeditious manner. 20. 6.2 Breach/Right to Cure Breach. 6.2.1 Notice. Except as provided at Section 6.2.4 herein, if a Parry believes that the other Party is in Breach, such Party shall give written notice to the Noticed Party stating with reasonable specificity the nature of the alleged Breach. The Noticed Party shall have thirty (30) days, or such lesser or greater time as specified in the notice, from the receipt of such notice to: 6.2.1.1 Respond to the other Party, contesting that Parry's assertion that a Breach has occurred; or 6.2.1.2 Cure the alleged Breach; or 6.2.1.3 Notify the other Party that the Noticed Party cannot cure the Breach within the time provided in the notice because of the nature of the Breach. In the event the Breach cannot be cured within time provided in the notice, the Noticed Party shall promptly take all reasonable steps to cure the Breach and notify the other Party in writing and in detail as to the exact steps that will be taken and the projected completion date. In such case, the other Party may set a meeting to determine whether additional time beyond the time provided in the notice is indeed needed, and whether the Noticed Parry's proposed completion schedule and steps are reasonable. 6.2.2 Time to Cure. When specifying the time period for cure, the Party giving notice shall take into account, the nature and scope of the alleged Breach, the nature and scope of the work required to cure the Breach, whether the Breach has created or will allow to continue an unsafe condition, the extent to which delay in implementing a cure will result in adverse financial consequences or other harm to the Party giving notice, and whether delay in implementing a cure will result in a violation of applicable Law or breach of contract. 6.2.3 Failure to Cure. If the Noticed Party fails to promptly commence and diligently pursue cure of a Breach to completion to the reasonable satisfaction of the Party giving notice and in accordance with the time to cure, as established pursuant to Sections 6.2.1, 6.2.1.3 and 6.2.2, then the party giving such notice shall be entitled to seek remedies as set forth in Section 6.3 herein or any such other remedies allowed at Law, in contract or in equity. 6.2.4 Election. In the event of a Breach that may also constitute grounds for revocation as set forth at Section 6.4.1.1 through 6.4.1.12 herein, the City may, at its election and in lieu of the notice and cure procedures set forth in Section 6.2.1 through 6.2.3, follow the procedures and exercise the rights and remedies as set forth in Section 6.4 herein. 6.3 Remedies. The Parties have the right to seek any and all of the following remedies, singly or in combination, in the event of Breach: 21. 6.3.1 Specific Performance. Each Party shall be entitled to specific performance of each and every obligation of the other Party under this Franchise without any requirement to prove or establish that such Party does not have an adequate remedy at law. The Parties hereby waive the requirement of any such proof and acknowledge that either Party would not have an adequate remedy at law for the commission of a Material Breach hereunder. 6.3.2 Injunction. Each Party shall be entitled to restrain, by injunction, the actual or threatened commission or attempt of an Event of Default and to obtain a judgment or order specifically prohibiting a Material Breach of this Franchise without, in either case, being required to prove or establish that such Party does not have an adequate remedy at law. The Parties hereby waive the requirement of any such proof and acknowledge that the other Party would not have an adequate remedy at law for the commission of a Material Breach hereunder. 6.3.3 Damages; Equitable Relief. Each Party shall be entitled to commence a Legal Action at law for monetary damages or impose liquidated damages as set forth below or seek other equitable relief. 6.4 Revocation. 6.4.1 Cause. This Franchise, and all rights granted hereunder to Franchisee, may be revoked by the City for any one or more of the following reasons: 6.4.1.1 Construction or operation in the City or in the Right -of - Way of the City or upon City property without a grant of authority from an authorization, franchise, or lease; Franchisee; 6.4.1.2 Construction or operation at an unauthorized location; 6.4.1.3 Unauthorized substantial transfer of control of 6.4.1.4 Unauthorized assignment of the Franchise; 6.4.1.5 Unauthorized sale, assignment or transfer of a Franchisee's Franchise assets, or a substantial interest therein; 6.4.1.6 Misrepresentation by or on behalf of Franchisee in any application or written statement upon which the City relies in making the decision to grant, review or amend the Franchise pursuant to MMC Title 19 (Exhibit B) or this Franchise; 6.4.1.7 Abandonment of Telecommunications Facilities in the public Right -of -Way or upon City property; 22. 6.4.1.8 Failure to relocate or remove Telecommunications Facilities as required in this Franchise; and as due the City; Title 19; or 6.4.1.9 Failure to pay taxes, compensation, fees or costs when 6.4.1.10 Insolvency or bankruptcy of Franchisee; 6.4.1.11 Violation of any material applicable provision of MMC 6.4.1.12 Violation of any material term of this Franchise. 6.4.2 Notice and Duty to Cure. In the event that the City believes that grounds exist for revocation of this Franchise, Franchisee shall be given written notice of the apparent violation or noncompliance, providing a short and concise statement of the nature and general facts of the violation or noncompliance, and providing Franchisee a reasonable period of time not exceeding 30 days to furnish evidence: 6.4.2.1 That corrective action has been, or is being actively and expeditiously pursued, to remedy the violation or noncompliance; 6.4.2.2 That rebuts the alleged violation or noncompliance; or 6.4.4.3 That it would be in the public interest to impose some penalty or sanction less than revocation. 6.4.3 Hearin. In the event that Franchisee fails to provide evidence reasonably satisfactory to the City as provided in Section 6.4.2 herein, the City shall refer the apparent violation or noncompliance to the City Council. The City Council shall provide Franchisee with notice and a reasonable opportunity to be heard concerning the matter. 6.4.4 Standards for Revocation or Lesser Sanctions. If the City Council determines that Franchisee willfully violated or failed to comply with any of the applicable provisions of MMC Title 19 (Exhibit B) or this Franchise, or through willful misconduct or gross negligence failed to heed or comply with any notice given Franchisee by the City under the applicable provisions of MMC Title 19 (Exhibit B) or this Franchise, then Franchisee shall, at the election of the City Council, forfeit all rights conferred hereunder and the Franchise may be revoked or annulled by the City Council. The City Council may elect, in lieu of the above and without any prejudice to any of its other legal rights and remedies, to pursue other remedies as set forth in Section 6.3 herein. The City Council shall utilize the following factors in analyzing the nature, circumstances, extent, and gravity of the violation and in making its determination under this Section: 23. 6.4.4.1 Whether the misconduct was egregious; 6.4.4.2 Whether substantial harm resulted; 6.4.4.3 Whether the violation was intentional; 6.4.4.4 Whether there is a history of prior violations of the same or other requirements; 6.4.4.5 Whether there is a history of overall compliance; and 6.4.4.6 Whether the violation was voluntarily disclosed, admitted or cured. 6.5 Assessment of Liguidated Damages. 6.5.1 Because it may be difficult to ascertain or quantify the harm to the City in the event of a Breach of this Franchise by Franchisee, the Parties agree to liquidated damages as a reasonable estimation of the actual economic losses resulting from a Breach of those provisions of this Franchise set forth in Section 6.5.7. To the extent that the City elects to assess liquidated damages as provided in this Franchise, such damages shall be the City's sole and exclusive remedy for recovery of damages resulting from such Breach and shall not exceed a time period of one hundred eighty (180) days. Nothing in this subsection is intended to preclude the City from exercising any other right or remedy with respect to a Breach that continues past the time the City stops assessing liquidated damages for such Breach. 6.5.2 Prior to assessing any liquidated damages, the City shall follow the procedures set forth in this Franchise that provide Franchisee proper notice and a right to cure when applicable. 6.5.3 With the exception of failure to comply with a stop work order pursuant to Section 7.4.4 herein, the City shall not assess any liquidated damages if Franchisee has cured or commenced to and completes the cure under the enforcement provisions of Article 6 of this Franchise. In the event Franchisee fails to cure, the City may assess liquidated damages and shall inform Franchisee in writing of the assessment. Franchisee shall have thirty (30) days to pay the damages. The City may immediately begin assessing liquidated damages upon issuance of a stop work order in the event that Franchisee, or its contractors or subcontractors, fails to comply with such stop work order. 6.5.4 The first day for which liquidated damages may be assessed, if there has been no cure after the end of the applicable cure period, shall be the day that Franchisee received the notice of Breach. 24. 6.5.5 Franchisee may challenge in court any assessment of liquidated damages. 6.5.6 The liquidated damages amount may be adjusted by the City every five years from the date of execution of this Franchise to take into account cumulative inflation. 6.5.7 Pursuant to the requirements outlined herein, liquidated damages shall not exceed the following amounts: 6.5.7.1 One hundred dollars ($100.00) per day for failure to comply with the requirements of the following Sections: 2.2 (Authorized Services); 2.7 (Transfer); 4.5 (Expiration/Termination), 5.3 (Insurance Requirements), 5.4 (Financial Security), 5.5 (Parental Guarantee); and 6.5.7.2 Five hundred dollars ($500) per day for the first two days for failure to comply with the requirements of Section 7.4.4 (Stop Work), and one thousand dollars ($1,000) per day for each day thereafter. 6.5.8 It is not the City's intention to subject Franchisee to liquidated damages for a Breach of the Franchise where the violation was a good faith error that resulted in no or minimal negative impact to the City, or where strict performance would result in practical difficulties and hardship to Franchisee which outweighs the benefit to be derived by the City. The City may not collect both liquidated damages and actual damages for the same violation. 6.5.9 Franchisee shall not be: (1) obligated to pay these liquidated damages; or (2) held to violation if the noncompliance is due to a Force Majeure as set forth in Section 8.15 herein. 6.6 Receivership. At the option of the City, subject to applicable Law and lawful orders of courts of jurisdiction, this Franchise may be revoked after the appointment of a receiver or trustee to take over and conduct the business of Franchisee whether in a receivership, reorganization, bankruptcy or other action or proceeding, unless: 6.6.1 The receivership or trusteeship is timely vacated; or 6.6.2 The receiver or trustee has timely and fully complied with all the terms and provisions of this Franchise, and has remedied all defaults under the Franchise. Additionally, the receiver or trustee shall have executed an agreement duly approved by the court having jurisdiction, by which the receiver or trustee assumes and agrees to be bound by each and every term, provision and limitation of this Franchise. 25. ARTICLE 7. CONDITIONS UPON USE OF RIGHT-OF-WAY 7.1 Conditions Precedent to Work. Except as may be otherwise required by applicable City code, rule, regulation or Standard, Franchisee shall comply with the following as a condition precedent to Work: 7.1.1 Regulatory Permits Required. Except as otherwise set forth in this Franchise, prior to performing any Work in the Right -of -Way requiring a Regulatory Permit, Franchisee shall apply for, and obtain in advance, such appropriate Regulatory Permits from the City as are required by ordinance or rule; provided that, Franchisee may perform preliminary site investigation Work within a proposed Franchise Area pursuant to such authorization (e.g., consent to entry, temporary street occupancy permit) as the City and Franchisee may otherwise agree upon. Franchisee shall pay all generally applicable and lawful fees for the requisite City Regulatory Permits. In the event that, as a condition of applying for a Regulatory Permit, Franchisee must have authorization from the City (as the owner/manager of the property to be developed) to apply for such Regulatory Permit, the general Franchise grant given herein shall, as to the proposed Franchise Area, constitute any such consent or authorization of the City that is necessary for such application. This consent or authorization shall not be deemed to be consent to or approval of the governmental action being sought. 7.1.2 Compliance with Franchise. Franchisee shall be in material compliance with the Franchise, including by way of example and not limitation, payment of fees invoiced to Franchisee for City reimbursable costs and expenses related to review and approval of the Regulatory Permit(s), proof of insurance and proof of financial security. 7.2 Compliance with Standards/Codes. Except as may be preempted by federal or state Laws, and subject to Article 3, all Work shall be performed in compliance with the following "Standards": 7.2.1 City Regulations. City Ordinances and regulations adopted by the City Engineer or Public Works Director establishing standards for placement of Telecommunications Facilities in Right -of -Way, including by way of example and not limitation, the specific location of Telecommunications Facilities in the Right -of -Way. This shall also include any road design and construction standards set forth in Title 12 of the Medina Municipal Code that the City shall deem necessary to provide adequate protection to the Right -of -Way, its safe operation and maintenance; and 7.2.2 Industry Standards. All Telecommunications Facilities shall be durable and Constructed in accordance with good engineering practices and standards promulgated by the government and industry for placement, Construction, design, type of materials and operation of Franchisee Telecommunications Facilities. 26. Notwithstanding the foregoing, nothing in Section 7.2 shall be read or interpreted as a waiver of any vested rights Franchisee may have or a waiver of any rights Franchisee may have for a Telecommunications Facility that qualifies as a nonconforming use or structure. 7.3 UnderUounding Requirements. 7.3.1 MMC Section 19.10.050(A) (Exhibit B) requires all new Telecommunications Facilities to be located underground unless otherwise provided in a franchise. The Parties agree that this requirement shall not apply to Antennas, Support Structures, Ancillary Facilities and Equipment Housing Structures, as those terms are defined in MMC Chapter 17.90, that are located above ground pursuant to the requirements of MMC Chapter 17.90. Further, the Parties agree that in those portions of the Franchise Area where the wires and lines of electric, cable and/or telephone service providers are located above grade, Franchisee is authorized to Construct its fiber optic cables above grade. In those portions of the Franchise Area where all of the wires and lines of electric, cable and telephone service providers are located underground, Franchisee shall Construct its fiber optic cables underground. In any part of the Franchise Area where the wires and lines of the electric, cable and telephone service providers are both aerial and underground, Franchisee shall have the discretion to Construct all of its fiber optic cables, or any part thereof, aerially or underground. Whenever any new or existing electric utilities, cable facilities, or Telecommunications Facilities are located or relocated underground within a City Right -of -Way , if Franchisee fiber optic cable or related facilities occupies the same Right -of -Way, it shall relocate its fiber optic cable and related facilities underground at no expense to the City. Absent extraordinary circumstances or undue hardship as determined by the city manager, such relocation shall be made concurrently to minimize the disruption of the Right -of -Way. 7.3.2 Franchisee and the City recognize that situations may occur in the future where the City may desire to place its own conduit and fiber optic cable in trenches or bores opened by Franchisee. Franchisee agrees to cooperate with the City in any such construction that involves trenching or boring. Franchisee shall allow the City to lay City conduit and fiber optic cable in Franchisee's trenches and bores, provided that the City and Franchisee enter into a mutually acceptable cost sharing arrangement consistent with State law. The City shall be responsible for maintaining its respective conduit and fiber optic cable, which is buried in Franchisee's trenches and bores. 7.4 Work in the Ri t-of-Way. 7.4.1 Least Interference. Work in the Right -of -Way shall be done in a manner that does not unnecessarily hinder or obstruct the free use of the Right -of -Way or other public property and which causes the least interference with the rights and reasonable convenience of property owners, businesses and residents along the Right -of -Way. Franchisee Telecommunications Facilities shall be designed, located, and Constructed so as not to impair the use or operation of any street improvements, utilities, and related 27. facilities of the City or the City's existing lessees, licensees, franchisees, easement beneficiaries or lien holders, without prior written consent of City or the parties whose improvements are impaired and whose consent is required pursuant to agreements with the City existing prior to the Effective Date. Franchisee's Telecommunications Facilities shall be designed, located, and Constructed in such a manner as not to interfere with any planned utilities. For purposes of this Section, "planned" shall mean utilities which the City intends to construct in the future, which intent is evidenced by the inclusion of said utility project in a Capital Investment Program Plan, a comprehensive utility plan, a transportation improvement plan, the City's Comprehensive Plan, or other written construction or planning schedule. 7.4.2 Work of Contractors and Subcontractors. Franchisee's contractors and subcontractors performing Work in the Franchise Area shall be licensed and bonded in accordance with the City's and State's applicable regulations and requirements. Any contractors or subcontractors performing Work within the Right -of -Way on behalf of Franchisee shall be deemed servants and agents of Franchisee for the purposes of this Franchise and are subject to the same restrictions, limitations and conditions as if the Work were performed by Franchisee. Franchisee shall be responsible for all Work performed by its contractors and subcontractors and others performing Work at Franchisee's request as if the Work were performed by it, and shall ensure that all such Work is performed in compliance with this Franchise and other applicable Laws, and shall be jointly and severally liable for all damages and correcting all damage caused by them. It is Franchisee's responsibility to ensure that contractors, subcontractors or other Persons performing Work at Franchisee's request are familiar with the requirements of this Franchise and other applicable Laws governing the Work performed by them. 7.4.3 Emergency Permits. In the event that Emergency repairs are necessary, Franchisee shall, as soon as practicable under the circumstances, notify the city manager or designee of the need for such repairs. Franchisee may initiate such Emergency repairs, and shall apply for appropriate Regulatory Permits, to the extent necessary, within forty-eight (48) hours after discovery of the Emergency. In the event of an Emergency, a Franchisee may perform Emergency Work in the Right -of -Way without first securing a Regulatory Permit for such Emergency Work, provided that: (1) Franchisee notifies the City in advance of performing such Emergency Work and the type and location of such Work; (2) Franchisee applies for a Regulatory Permit on the first business day following commencement of such Work; and (3) Franchisee, at its sole cost and expense, makes its Work performed in the Right -of -Way available for inspection to determine compliance with applicable Laws and Standards. 7.4.4 Stop Work. If a stop work order is issued consistent with the Medina Municipal Code, Franchisee shall cease, and shall cause its contractors and subcontractors to cease, such activity until the City is reasonably satisfied that Franchisee is in compliance. If an unsafe condition is found to exist, the City, in addition to taking any other action permitted under applicable Law, may order Franchisee to make the necessary repairs and alterations specified therein forthwith to correct the unsafe condition by a time the City reasonably establishes. The City has the right to inspect, repair and correct the 0.1 unsafe condition if Franchisee fails to do so, and to charge Franchisee the Direct Costs thereof 7.4.5 Dedication of City Utilities/Public Improvements. Upon substantial completion of Construction of the Telecommunications Facilities and any related restoration of or improvements to or within the Right -of -Way, including without limitation, curbs, gutters, sidewalks, underlayment, roadway surface, pipe, connectors, catch basins, or any part thereof that will be dedicated to City ownership (collectively "Dedicated Improvements"), Franchisee shall submit a written request to the City for a final inspection and acceptance of dedication of all Dedicated Improvements. When the City is reasonably satisfied that the Work related to the Dedicated Improvements is substantially complete, it shall by ordinance, resolution or other lawful means accept ownership of such Dedicated Improvements and thereafter become responsible for maintenance, repair, and replacement of the same. 7.5 Alterations. Except as may be shown in any plans approved by the City, or as may be necessary to respond to an Emergency, Franchisee, and Franchisee's contractors and subcontractors, may not make any material alterations to the Franchise Area without City's prior written consent. Material alteration shall include by way of example and not limitation, a change in the dimension or height of the above ground Telecommunications Facilities or the addition of or change in configuration of an antenna; but shall not include changes to the equipment used as part of the Telecommunications Facilities that do not affect the exterior appearance of the Telecommunications Facilities. If Franchisee desires to change either the location of any Telecommunications Facilities or otherwise materially deviate from the approved design of any of the Telecommunications Facilities, Franchisee shall submit such change to the City for its approval pursuant to the procedures outlined in the Medina Municipal Code. Franchisee shall have no right to commence any such alteration change until after Franchisee has received City's approval of such change in writing. 7.6 General Conditions. 7.6.1 Subject to receiving advance notice, Franchisee shall make reasonable efforts to attend and participate in meetings of the City regarding Right -of -Way issues that may impact its Telecommunications Facilities. 7.6.2 Compliance Inspection. Following the completion of Construction, Franchisee's Telecommunications Facilities shall be subject to the City's right of periodic inspection upon at least twenty-four (24) hours notice, or, in case of an Emergency, upon demand without prior notice, to determine compliance with the provisions of this Franchise or Regulatory Permit or other applicable Law over which the City has jurisdiction. Franchisee shall respond to requests for information regarding its Telecommunications Facilities as the City may from time to time issue to determine compliance with this Franchise, including requests for which theTelecommunicationstion Franchisee's plans for Construction and the purposes 29. Facility is being Constructed. Notwithstanding the foregoing, the City agrees that it shall only conduct such inspections when: (a) it has received a complaint; (b) such inspection is required as part of the approval of the Regulatory Permit; or (c) when there is reasonable cause to believe that a violation exists. Franchisee reserves the right to dispute any City charge for such inspections if Franchisee believes that such inspection was unnecessary or redundant. 7.6.3 One Call. If Franchisee places Telecommunications Facilities underground, Franchisee shall, at its own expense, continuously be a member of the State of Washington one number locator service under Chapter 19.122 RCW, or an approved equivalent, and shall comply with all such applicable rules and regulations. Franchisee shall locate and field mark its Telecommunications Facilities for the City at no charge. 7.6.4 Graffiti Removal. Within 48 hours after notice from the City, Franchisee shall remove any graffiti on any part of its Telecommunications Facilities, including, by way of example and not limitation, equipment cabinets. If Franchisee fails to do so, the City may remove the graffiti and bill Franchisee for the cost thereof. 7.6.5 Dangerous Conditions, Authority for City to Abate. Whenever Construction of Telecommunications Facilities has caused or contributed to a condition that appears to substantially impair the lateral support of the adjoining Right -of -Way, street, or public place, or endangers the public, any utilities, or City -owned property, the City may reasonably require Franchisee to take reasonably necessary action to protect the Right -of -Way, the public, adjacent public places, City -owned property, streets, and utilities. Such action may include compliance within a reasonably prescribed time. In the event that Franchisee fails or refuses to promptly take the actions directed by the City, or fails to fully comply with such directions, or if Emergency conditions exist which require immediate action, the City may, to the extent it may lawfully do so, take such actions as are necessary to protect the Right -of -Way, the public, adjacent public places, City -owned property, streets, and utilities, to maintain the lateral support thereof, or actions regarded as necessary safety precautions; and Franchisee shall be liable to the City for the Direct Costs thereof to the extent of Franchisee's responsibility for the condition. 7.6.6 No Duty. Notwithstanding the right of the City to inspect the Work, issue a stop work order, and order or make repairs or alterations, the City has no duty or obligation to observe or inspect, or to halt work on, the applicable Telecommunications Facilities, it being solely Franchisee's responsibility to ensure that the Telecommunications Facilities are Constructed and operated in strict accordance with this Franchise, the approved plans, the Standards, and applicable Law. Neither the exercise nor the failure by the City to exercise any right set forth in this Article 7 shall alter the liability allocation set forth in this Franchise. 7.6.7 Roadside Hazard. All of Franchisee's Telecommunications Facilities shall be kept by Franchisee at all times in a reasonably safe and hazard -free condition. Franchisee shall ensure that Telecommunications Facilities within the Right- 30. of -Way do not become or constitute an impassible roadside obstacle and do not interfere with or create a hazard to maintenance of and along the Right -of -Way. In such event, or in the event that the City determines that a Telecommunications Facility within the Right - of -Way is impairing passage within the Right -of -Way or may interfere with or create a hazard to maintenance of and along the Right -of -Way, Franchisee shall: 7.6.7.1If the hazard results from disrepair, repair the Telecommunications Facility to a safe condition; 7.6.7.2 Relocate the Telecommunications Facility to another place within the Right -of -Way or underground; 7.6.7.3 Crash -protect the Telecommunications Facility; or 7.6.7.4In the event that the Telecommunications Facility is screened from view (i.e., not readily visible from all directions by persons standing at ground level), remove or trim vegetation in and around the Telecommunications Facility. Franchisee, at all times, shall employ the standard of care attendant to the risks involved and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injury, or nuisance to the public or to Franchisee's agents or employees. Franchisee, at its own expense, shall repair, renew, change, and improve its Telecommunications Facilities from time to time as may be necessary to accomplish this purpose. Franchisee shall use suitable barricades, flags, flaggers, lights, flares and other measures as required for the safety of all members of the general public and to prevent injury or damage to any person, vehicle or property by reason of such Work in or affecting such Right -of -Way or property. All excavations made by Franchisee in the Right -of -Way shall be properly safeguarded for the prevention of accidents. 7.6.8 Verification of Alignment/Depth. Upon the reasonable request and prior written notice, in non -Emergency situations, with at least thirty (30) days notice provided by the City and in order to facilitate the location, alignment and design of Public Improvements, Franchisee agrees to locate, and if reasonably determined necessary by the City, to excavate and expose portions of its Telecommunications Facilities for inspection so that the location of same may be taken into account in the improvement design; provided that, Franchisee shall not be required to excavate and expose its Telecommunications Facilities unless Franchisee's record drawings and maps of its Telecommunications Facilities are reasonably determined by the City to be inadequate for purposes of this subsection. 7.7 Telecommunications Facility Relocation at Request of the City for Public Improvements. 7.7.1 Public Project. The City may require Franchisee to alter, adjust, relocate, or protect in place its Telecommunications Facilities within the Right -of -Way 31. when reasonably necessary for Construction, alteration, repair, or improvement of any portion of the Right -of -Way for purposes of public welfare, health, or safety ("Public Improvements"). Such Public Improvements include, by way of example but not limitation, Right -of -Way Construction; Right -of -Way repair (including resurfacing or widening); change of Right -of -Way grade; Construction, installation or repair of sewers, drains, water pipes, power lines, signal lines, communication lines, or any other type of government -owned communications utility or public transportation systems, public work, public facility, or improvement of any government owned utility; Right -of -Way vacation; and the Construction of any Public Improvement by any governmental agency acting in a governmental capacity or by a developer as required by development approval. 7.7.2 Alternatives. Franchisee may, after receipt of written notice requesting a relocation of its Telecommunications Facilities, submit to the City written alternatives to such relocation. The City shall evaluate such alternatives and advise Franchisee in writing if one or more of the alternatives are suitable to accommodate the Public Improvement which would otherwise necessitate relocation of the Telecommunications Facilities. If so requested by the City, Franchisee shall submit additional information to assist the City in making such evaluation. The City shall give each alternative proposed by Franchisee full and fair consideration, within a reasonable time, so as to allow for the relocation Work to be performed in a timely manner. In the event the City ultimately determines, in its sole discretion, that there is no other reasonable alternative, Franchisee shall relocate its Telecommunications Facilities as otherwise provided in this Section. In the event that the City reasonably determines that it does not have available resources to evaluate Franchisee's proposal, the City shall not be obligated to further consider such proposal unless and until Franchisee funds the additional costs to the City to complete its evaluation. 7.7.3 Notice/Timeline. The City shall notify Franchisee as soon as practicable of the need for relocation for a Public Improvement and shall specify the date by which relocation shall be completed. Except in case of Emergency, such notice shall be no less than one hundred and eighty (180) days. Within 30 days following written notice from the City, Franchisee shall provide a schedule to the City indicating the estimated completion date for temporarily or permanently removing, relocating, changing, or altering the position of any Telecommunications Facilities within the Right - of -Way or upon City property. In calculating the date that relocation must be completed, City shall consult with Franchisee and consider the extent of Telecommunications Facilities to be relocated, the service requirements, the time required to obtain the Regulatory Permits to relocate the Telecommunications Facilities to the new location(s), and the construction sequence for the relocation, within the overall project construction sequence and constraints, to safely complete the relocation. Franchisee shall complete the relocation by the date specified, unless the City, or a reviewing court, establishes a later date for completion, after a showing by Franchisee that the relocation cannot be completed by the date specified using best efforts and meeting safety and service requirements. 32. 7.7.4 Coordination of Work. Franchisee acknowledges and understands that any delay by Franchisee in performing the Work to alter, adjust, relocate, or protect in place its Telecommunications Facilities within the Right -of -Way may delay, hinder, or interfere with the work performed by the City and its contractors and subcontractors in furtherance of Construction, alteration, repair, or improvement of the Public Improvement, and result in damage to the City, including but not limited to, delay claims. Franchisee shall cooperate with the City and its contractors and subcontractors to coordinate such Franchisee Work to accommodate the Public Improvement project and project schedules to avoid delay, hindrance of, or interference with such project. 7.7.5 Failure to Comply. Should Franchisee fail to alter, adjust, protect in place or relocate any Telecommunications Facilities ordered by the City to be altered, adjusted, protected in place, or relocated, within the time prescribed pursuant to Section 7.7.3, or if it is not done to the City's reasonable satisfaction, the City may, to the extent the City may lawfully do so, cause such work to be done and bill the Direct Costs of the work to Franchisee. In such event, the City shall not be liable for any damage to any portion of Franchisee's Telecommunications Facilities, unless directly or proximately caused by willful, intentional, or malicious acts by the City. 7.7.6 Assignment of Rights. In addition to any other rights of assignment the City may have, the City may from time to time assign or transfer to its contractors or subcontractors its rights under Sections 7.7 or 7.9 of this Franchise to require Franchisee to alter, adjust, relocate, or protect in place its Telecommunications Facilities within the Right -of -Way to accommodate a Public Improvement. Franchisee acknowledges and consents to such an assignment(s)/transfer(s) and agrees that it is bound by all lawful orders issued by such assignee(s) of the City under color of authority of such assignment(s)/transfer(s) as though such orders had been issued by the City under the terms and conditions of this Franchise. Such assignment/transfer is an assignment/transfer of the City's contract rights under this Franchise and shall not in any way be interpreted or construed as an assignment, transfer, delegation or relinquishment of the City's rights under its police powers to require Franchisee to alter, adjust, relocate, or protect in place its Telecommunications Facilities within the Right -of -Way to accommodate a Public Improvement. 7.7.7 Reimbursement for Costs. Notwithstanding the cost allocation provisions set forth in this Franchise, Franchisee does not waive its right(s) to and shall be entitled to seek reimbursement of its relocation costs as may be otherwise specifically set forth and authorized in statute. 7.8 Movement of Telecommunications Facilities for Others. 7.8.1 Private Benefit. If any alteration, adjustment, temporary relocation, or protection in place of any of Franchisee's Telecommunications Facilities is required to accommodate the Construction of facilities or equipment that are not part of a Public Improvement project, Franchisee shall, after at least ninety (90) days advance written notice, take action to effect the necessary changes requested by the requesting entity; 33. provided that, (a) the Person requesting the same pays for Franchisee's time and material costs associated with the requested work; (b) the alteration, adjustment, temporary relocation or protection in place is reasonably necessary to accommodate such work; (c) the Person requesting the alteration, adjustment, temporary relocation, or protection in place considers alternatives in the same manner as provided at Section 7.7.2; (d) such alteration, adjustment, temporary relocation or protection in place does not unreasonably interfere with Franchisee's ability to continue to provide Telecommunications service; (e) Franchisee is able to obtain all necessary Regulatory Permits before completing such alteration, adjustment, temporary relocation or protection in place; and (f) such alteration, adjustment, or temporary relocation is not requested for the purpose of obtaining a competitive advantage over Franchisee. 7.8.2 Temporary Changes for Other Persons. At the request of any Person holding a valid permit and upon reasonable advance notice, Franchisee shall temporarily raise, lower or remove its wires as necessary to permit the moving of a building, vehicle, equipment or other item. The expense of such temporary changes shall be paid by the permit holder. Franchisee shall be given not less than fourteen (14) days' advance notice to arrange for such temporary wire changes. 7.9 Movement of Telecommunications Facilities During Emergencies. 7.9.1 Immediate Threat. In the event of an unforeseen event, condition or circumstance that creates an immediate threat to the public safety, health, or welfare, the City shall have the right to require Franchisee to shut down, relocate, remove, replace, modify, or disconnect Franchisee's Telecommunications Facilities located in the Right -of - Way at the expense of Franchisee without regard to the cause or causes of the immediate threat. 7.9.2 Emergency. In the event of an Emergency, or where a Telecommunications Facility creates or is contributing to an imminent danger to health, safety, or public property, the City shall have the right to require Franchisee to shut down, relocate, modify or disconnect one or more of its Telecommunications Facilities located in the Right -of -Way at Franchisee's expense. 7.9.3 Notice. During Immediate Threats and/or Emergencies, the City shall endeavor to, as soon as practicable, provide notice to Franchisee of such Immediate Threat or Emergency at a designated response contact number, to allow Franchisee the opportunity to respond and rectify the problem without disrupting Franchisee's Telecommunications service. To the extent Franchisee fails to timely respond to such notice, the City may protect, support, temporarily disconnect, remove, or relocate any or all parts of Franchisee's Telecommunications Facilities located within the Right -of -Way to the extent the City, in its sole discretion, determines it is necessary to respond to the Immediate Threat or Emergency, and the City may charge Franchisee for the reasonable costs incurred. 34. 7.9.4 Limitation on Liability. The City shall not be liable for any direct, indirect, or any other such damages suffered by any person or entity of any type as a direct or indirect result of the City's actions under this Section, unless directly or proximately caused by willful, intentional, or malicious acts by the City. 7.10 Record of Installations. 7.10.1 Planned Improvements. Upon written request of the City, Franchisee shall provide the City with the most recent update available of any planned improvements to its Telecommunication Facilities to the extent such plans do not contain confidential or proprietary information or such information can be redacted; provided, however, any such plan submitted shall be for informational purposes only and shall not obligate Franchisee to undertake any specific improvements, nor shall such plan be construed as a proposal to undertake any specific improvements. 7.10.2 Maps/Record Drawings of Telecommunications Facilities. After Construction involving the locating or relocating of Telecommunications Facilities, or upon request by the City, Franchisee shall provide the City with accurate copies of all record drawings and maps showing the horizontal and vertical location and configuration of all located or relocated Telecommunications Facilities within the Right -of -Way. These record -drawings and maps shall be provided at no cost to the City, and shall include hard copies and digital copies in a format reasonably specified by the City. As to any such record drawings and maps so provided, Franchisee does not warrant the accuracy thereof and to the extent the location of the Telecommunications Facilities are shown, such Telecommunications Facilities are shown in their approximate location. 7.11 Restoration of Right -of -Way, Public and Private Property. 7.11.1 Restoration after Construction. Franchisee shall, after completion of Construction of any part of its Telecommunications Facilities, leave the Right -of -Way and other property disturbed thereby, in as good or better condition in all respects as it was in before the commencement of such Construction. Franchisee agrees to promptly complete restoration work to the reasonable satisfaction of the City. 7.11.2 Notice. If Franchisee's Work causes unplanned, unapproved, or unanticipated disturbance of or alteration or damage to Right -of -Way or other public or private property, Franchisee shall promptly notify the property owner within twenty-four (24) hours of discovery. 7.11.3 Duty to Restore. If Franchisee's Work causes unplanned, unapproved, or unanticipated disturbance of or alteration or damage to the Right -of -Way or other public property, it shall promptly restore such Right -of -Way and public property to as good or better condition as existed before the Work was undertaken, unless otherwise directed by the City. If the City determines that complete or satisfactory restoration is not obtainable, the City shall have the right to require compensation for the less than complete or satisfactory condition of the Right -of -Way or public property. Franchisee 35. shall initiate the restoration work within forty-eight (48) hours or as authorized by the City's Public Works Director, and shall diligently continue such restoration work until completed. 7.11.4 Temporary Restoration. If weather or other conditions do not allow the complete restoration required by this Section, Franchisee shall temporarily restore the affected Right -of -Way or public property. Franchisee shall promptly undertake and complete the required permanent restoration when the weather or other conditions no longer prevent such permanent restoration. 7.11.5 Survey Monuments. All survey monuments which are disturbed or displaced by any Work shall be referenced and restored, as per WAC 332-120, as the same now exists or may hereafter be amended, and pursuant to all pertinent federal, state and local standards and specifications. 7.11.6 Approval. The City shall be responsible for observation and final approval of the condition of the Right -of -Way and City property following any restoration activities therein. Franchisee is responsible for all testing and monitoring of restoration activities. 7.11.7 Warr Franchisee shall warrant any restoration work performed by Franchisee in the Right -of -Way or on other public property for one (1) year, unless a longer period is required by the Municipal Code or any generally applicable ordinance or resolution of the City. If restoration is not satisfactorily and timely performed by Franchisee, the City may, after prior written notice to Franchisee, or without notice in case of Emergency, cause the repairs to be made and recover the Direct Costs of those repairs from Franchisee. 7.11.8 Restoration of Private Property. When Franchisee does any Work in the Right -of -Way that affects, disturbs, alters, or damages any adjacent private property, it shall, at its own expense, be responsible for restoring such private property to the condition that existed prior to the Work to the reasonable satisfaction of the private property owner. 7.12 Approvals. Nothing in this Franchise shall be deemed to impose any duty or obligation upon the City to determine the adequacy or sufficiency of Franchisee's plans or to ascertain whether Franchisee's proposed or actual Construction is adequate or sufficient or in conformance with any plans approved by the City. No approval given, inspection made, review or supervision performed by the City pursuant to or under authority of this Franchise shall constitute or be construed as a representation or warranty, express or implied, by the City that such item reviewed, approved, inspected, or supervised complies with applicable Laws or this Franchise or meets any particular Standard, code or requirement, or is in conformance with the approved plans by the City, and no liability shall attach with respect thereto. City approvals and inspections as provided herein, are for the sole purpose of protecting the City's rights as the owner and/or manager of the Right -of -Way and shall not constitute any representation or warranty, express or implied, as to the adequacy of the design or Construction of the Telecommunication Facilities, suitability of the Franchise Area for Construction, or any 36. obligation on the part of the City to insure that Work or materials are in compliance with any requirements imposed by a governmental entity. City is under no obligation or duty to supervise the design, Construction, or operation of the Telecommunication Facilities. 7.13 Abandonment of Telecommunications Facilities. Franchisee's rights, duties and obligations to remove its unauthorized Telecommunications Facilities or abandon in place shall be as set forth in MMC Section 19.10.170 in Exhibit B. 7.14 Relationship to MMC. The provisions in this Article 7 supersede MMC Sections 19.10.050, 19.10.100, 19.10.110, 19.10.130, 19.10.150, 19.10.160, 19.10.180, 19.10.190, 19.10.200, 19.10.210, 19.12.010 (to the extent it incorporates MMC Sections 19.12.130 and 19.12.140), 19.12.130 and 19.12.140. ARTICLE 8 MISCELLANEOUS 8.1 Headings. Titles to articles and sections of this Franchise are not a part of this Franchise and shall have no effect upon the construction or interpretation of any part hereof. 8.2. Entire Agreement. This Franchise contains all covenants and agreements between the City and Franchisee relating in any manner to the Franchise, use, and occupancy of the Right -of -Way and other matters set forth in this Franchise. No prior agreements or understanding pertaining to the same, written or oral, shall be valid or of any force or effect, and the covenants and agreement of this Franchise shall not be altered, modified, or added to except in writing signed by the City and Franchisee and approved by the City in the same manner as the original Franchise was approved. 8.3 Incorporation of Exhibits. All exhibits attached hereto at the time of execution of this Franchise, or in the future as contemplated herein, are hereby incorporated by reference as though fully set forth herein. 8.4 Calculation of Time. All periods of time referred to herein shall include Saturdays, Sundays, and legal holidays in the State of Washington, except that if the last day of any period falls on any Saturday, Sunday, or legal holiday in the State of Washington, the period shall be extended to include the next day which is not a Saturday, Sunday, or legal holiday in the State of Washington; provided that, the Effective Date shall be determined as provided at Section 4.3 of this Franchise. 8.5 Time Limits Strictly Construed. Whenever this Franchise sets forth a time for any act to be performed by either Party, such time shall be deemed to be of the essence, and any failure of either Party to perform within the allotted time may be considered a Breach of this Franchise. 8.6 No Joint Venture. It is not intended by this Franchise to, and nothing contained in this Franchise shall, create any partnership, joint venture, or principal -agent relationship or other arrangement between Franchisee and the City. Neither Party is 37. authorized to, nor shall either Party act toward third Persons or the public, in any manner which would indicate any such relationship with the other. The Parties intend that the rights, obligations, and covenants in this Franchise and the collateral instruments shall be exclusively enforceable by the City and Franchisee, their successors, and assigns. No term or provision of this Franchise is intended to be, or shall be, for the benefit of any Person not a Party hereto, and no such Person shall have any right or cause of action hereunder, except as may be otherwise provided herein. Further, Franchisee is not granted any express or implied right or authority to assume or create any obligation or responsibility on behalf of or in the name of the City. Nothing in this Section 8.6 shall be construed to prevent an assignment as provided for at Section 7.7.6 of this Franchise. 8.7 Approval Authority. Except as may be otherwise provided by applicable Law or herein, any approval or authorization required to be given by the City, shall be given by the Public Works Director (or its successor). 8.8 Binding Effect Upon Successors and Assigns. All of the provisions, conditions, and requirements contained in this Franchise shall further be binding upon the heirs, successors, executors, administrators, receivers, trustees, legal representatives and assigns of Franchisee and the City; and all privileges, as well as all obligations and liabilities of Franchisee and the City shall inure to its heirs, successors, and assigns equally as if they were specifically mentioned wherever Franchisee is named herein. 8.9 Waiver. No failure by either Party to insist upon the performance of any of the terms of this Franchise, or to exercise any right or remedy consequent upon a Breach thereof, shall constitute a waiver of any such Breach or of any of the terms of this Franchise. None of the terms of this Franchise to be kept, observed or performed by either Party, and no Breach thereof, shall be waived, altered or modified except by a written instrument executed by the injured Party. No waiver of any Breach shall affect or alter this Franchise, but each of the terms of this Franchise shall continue in full force and effect with respect to any other then existing or subsequent Breach thereof. No waiver of any default of the defaulting Party hereunder shall be implied from any omission by the injured Party to take any action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the express waiver and then only for the time and to the extent therein stated. One or more waivers by the injured Party shall not be construed as a waiver of a subsequent breach of the same covenant, term or conditions. 8.10 Severability. If any word, article, section, subsection, paragraph, provision, condition, clause, sentence, or its application to any person or circumstance (collectively referred to as "Term"), shall be held to be illegal, invalid, or unconstitutional for any reason by any court or agency of competent jurisdiction, such Term declared illegal, invalid or unconstitutional shall be severable and the remaining Terms of the Franchise shall remain in full force and effect unless to do so would be inequitable or would result in a material change in the rights and obligations of the Parties hereunder, in which case the Parties shall reform the Franchise pursuant to Section 3.5 herein. 8.11 Signs. No signs or advertising shall be permitted in the Franchise Area except as may be required by applicable Law or as may be required by the City for the protection of the public health, safety and welfare, to the extent it has authority to do so. 8.12 Discriminatory Practices Prohibited. Throughout the term of this Franchise, Franchisee shall fully comply with all equal employment and nondiscrimination provisions of applicable Law. 8.13 Notice. Any notice required or permitted to be given hereunder shall be in writing, unless otherwise expressly permitted or required, and shall be deemed effective either: (i) upon hand delivery to the person then holding the office shown on the attention line of the address below, or, if such office is vacant or no longer exists, to a person holding a comparable office; (ii) or when delivered by a nationally recognized overnight mail delivery service, to the Party and at the address specified below; or (iii) on the third business day following its deposit with the United States Postal Service, first class and certified or registered mail, return receipt requested, postage prepaid, properly sealed and addressed as follows: Franchisee's address: The City's Address: And to the City Attorney ATC Outdoor DAS, LLC 10 Presidential Way Woburn, MA 01810 Attn: Land Management American Tower Corporation 116 Huntington Avenue Boston, MA 02116 Attn: General Counsel City of Medina Attn. City Manager 501 Evergreen Point Road Medina, WA 98039 City of Medina Attn. City Attorney 501 Evergreen Point Road Medina, WA 98039 The City and Franchisee may designate such other address from time to time by giving written notice to the other, but notice cannot be required to more than two addresses, except by mutual agreement. 8.14 Survival of Terms. Upon the expiration, termination, revocation or forfeiture of the Franchise, Franchisee shall no longer have the right to occupy the Franchise Area for the purpose of providing services authorized herein. However, Franchisee's obligations under this Franchise to the City shall survive the expiration, termination, revocation or forfeiture of these rights according to its terms for so long as 39. Franchisee's Telecommunications Facilities or any part thereof shall remain in whole or in part in the Right -of -Way, Franchisee transfers ownership of all Telecommunications Facilities in the Franchise Area to a third -party, or Franchisee abandons said Telecommunications Facilities in place, all as provided herein. Said obligations include, by way of illustration and not limitation, Franchisee's obligations to indemnify, defend, and protect the City, to provide insurance, to relocate its Facilities, and to reimburse the City for its Direct Costs to perform Franchisee Work. 8.15 Force Majeure. In the event Franchisee is prevented or delayed in the performance of any of its obligations herein due to circumstances beyond its control or by reason of a force majeure occurrence, such as, but not limited to, acts of God, acts of terrorism, war, riots, civil disturbances, natural disasters, floods, tornadoes, earthquakes, unusually severe weather conditions, employee strikes and unforeseen labor conditions not attributable to Franchisee's employees, Franchisee shall not be deemed in Breach of the provisions of this Franchise. If Franchisee believes that circumstances beyond its control or by reason of a force majeure occurrence have prevented or delayed its compliance with the provisions of this Franchise, Franchisee shall provide documentation as reasonably required by the City to substantiate Franchisee's claim. Franchisee shall have a reasonable time, under the circumstances, to perform the affected obligation under this Franchise or to procure a substitute for such obligation which is reasonably satisfactory to the City; provided that, Franchisee shall perform to the maximum extent it is able to perform and shall take immediate and diligent steps to bring itself back into compliance and to comply as soon as possible under the circumstances with the Franchise without unduly endangering the health, safety, and integrity of Franchisee's employees or property, or the health, safety, and integrity of the public, Right -of -Way, public property, or private property. 8.16 Attom sue. In the event a suit, action, arbitration, or other proceeding of any nature whatsoever, whether in contract or in tort or both, is instituted to enforce any word, article, section, subsection, paragraph, provision, condition, clause or sentence of this Franchise or its application to any person or circumstance, the prevailing Party shall be entitled to recover from the losing Party its reasonable attorneys', paralegals', accountants', and other experts' fees, and all other fees, costs, and expenses actually incurred and reasonably necessary in connection therewith, as allowed by Washington Law and as determined by the judge or arbitrator at trial or arbitration, as the case may be, or on any appeal or review, in addition to all other amounts provided by Law. This provision shall cover costs and attorneys' fees related to or with respect to proceedings in Federal Bankruptcy Courts, including those related to issues unique to bankruptcy law. This provision shall not apply to the extent that the suit, action, arbitration or other proceeding is brought to interpret any term, condition, provision, section, article or clause of this Franchise. 8.17 Venue/Choice of Law. This Franchise shall be governed and construed in accordance with the laws of the State of Washington. Any action brought relative to enforcement of this Franchise, or seeking a declaration of rights, duties or obligations .o herein, shall be initiated in the King County Superior Court, and shall not be removed to a federal court, except as to claims over which such the Superior Court has no jurisdiction. Removal to federal court shall be to the Federal Court of the Western District of Washington. 8.18 Publication. This ordinance, or a summary thereof, shall be published in the official newspaper of the City, the expense of which shall be borne by Franchisee, and shall take effect and be in full force in accordance with Section 4.3 herein. ADOPTED BY THE CITY COUNCIL AT A REGULAR MEETING THEREOF ON THE _2_ DAY OF tJQWXbW, 20 tO AND SIGNED IN AUTHENTICATION OF ITS PASSAGE THIS DAY OF 0J-0. Approved as to form: Bruce Disend, City Attorney Passed: it �d � l o Published: 0 Eff Date: I O CITY �ME]� A rVU Bret J6rd n, May Atte - 11( Ra t el Baker, City Clerk 41. 8398 NORTHEAST 12 STREET I P.O. BOX 144 1 MEDINA, WA 98039-0144 TELEPHONE 425.233.6400 1 FAX 425.451.8197 1 www.medina-wa.gov January 26, 2011 ATC Outdoor DAS, LLC American Tower Corporation Attn: Alexander P. Gamota 10 Presidential Way Woburn, MA 01801 Re: Franchise Agreement — Ordinance No. 863 - Acceptance Dear Mr. Gamota: The purpose of this letter agreement (the "Letter Agreement") is to express our mutual understanding of the effect of Section 4.1 and 4.2 of the franchise agreement (City Ordinance No. 863) passed and approved by the Medina City Council. As you are aware, the City and ATC Outdoor DAS, LLC ("ATC") had mutually agreed that after passage of the ordinance on November 8, 2010, certain clerical errors within the franchise ordinance would need to be corrected before the final ordinance could be prepared for attestation by the City Clerk and the Mayor's signature and prior to formal written acceptance by ATC. However, the clerical errors were not completed until the le day of January, thus delaying formal written acceptance of the franchise agreement by ATC beyond the 30 period set forth at section 4.1 of the franchise agreement. We believe that the parties are in agreement that any delay in formal written acceptance of the franchise agreement by ATC was due to circumstances beyond its control and that such failure to timely accept the franchise is excused by the provisions of Section 8.15 (Force Majeure) of the franchise agreement. Thus, ATC is not in violation of the provisions of section 4.1 of the franchise requiring written acceptance within 30 days following passage and approval of the franchise ordinance. Further, we believe that the parties are in agreement that, for purposes of the provisions of section 4.2 of the franchise providing that failure timely file acceptance will result in the franchise being deemed void, the written acceptance that has been, or will contemporaneously herewith be, filed with the City Clerk, will deemed by the City and ATC Outdoor DAS, LLC, to have been timely filed. If you are in agreement with the foregoing, please have the appropriate person on behalf of ATC execute the acceptance below. • Page 2 January 26, 2011 Your truly, f l� a - Donna Hanson City Manager City of Medina Accepted and agreed to by ATC Outdoor DAS, LLC on this _ day of , 2011. ATC Outdoor DAS, LLC : Print Name: Title: Mailing Address: ATC Outdoor DAS, LLC Attn: Alex Gamota 116 Huntington Ave. Boston, MA 02116 Figure 1 CITY E,4etgt %nt MEDINA LEGEND Underground Fiber 1000' +/- Aenal Hoer Route 1 tbuu' +/- Miles) Node # 10 locations EXHIBIT B Medina Municipal Code Title 19 43. Title 19 TELECOMMUNICATIONS Chapters: 19.02 General Provisions 19.04 Telecommunications Right -of -Way Use Authorizations 19.06 Telecommunications Franchise 19.07 Special Rules Applicable to Open Video Systems 19.08 Facilities Lease 19.10 Conditions of Telecommunications Right -of -Way Use Authorizations, Franchises, and Facilities Leases 19.12 Construction Standards 19-1 Medina Municipal Code Chapter 19.02 GENERAL PROVISIONS Sections: 19.02.010 Purpose and intent. 19.02.020 Definitions. 19.02.030 Telecommunications right-of-way use authorization required. 19.02.040 Telecommunications franchise required. 19.02.050 Cable television franchise required. 19.02.060 Facilities lease required. 19.02.070 Construction permits required. 19.02.080 Application to existing franchise ordinances, agreements, leases, and permits — Effect of other laws. 19.02.090 Universal service. 19.02.100 General penalties. 19.02.110 Initial inquiry/responsibilities. 19.02.120 Other remedies. 19.02.130 Fees and compensation not a tax. 19.02.010 Purpose and intent. The purpose and intent of this title is to: A. Establish a local policy concerning telecom- munications providers and service; B. Establish guidelines, standards and time frames for the exercise of local authority with respect to the regulation of telecommunications providers and services; C. Promote competition in telecommunica- tions; D. Minimize unnecessary local regulation of telecommunications providers and services; E. Encourage the provision of advanced and competitive telecommunications services on the widest possible basis to the businesses, institutions and residents of the city and the region; F. Permit and manage reasonable access to the rights -of -way of the city for telecommunications purposes on a competitively neutral basis; G. Conserve the limited physical capacity of the rights -of -way of the city; H. Assure that the city's current and ongoing costs of granting and regulating private access to and use of the rights -of -way are fully paid by the persons seeking such access and causing such costs; I. Secure fair and reasonable compensation to the city for permitting private use of the rights -of - way; J. Assure that all telecommunications carriers providing facilities or services within the city com- 19-3 19.02.020 ply with the ordinances, rules and regulations of the city; and K. Enable the city to discharge its public trust consistent with rapidly evolving federal and state regulatory policies, industry competition and tech- nological development. (Ord. 692 § 1, 2001) 19.02.020 Definitions. The following words and phrases shall have the following meanings, unless the context of the sen- tence in which they are used shall indicate other- wise: "Affiliate" means a person who (directly or indi- rectly) owns or controls, is owned or controlled by, or is under common ownership or control with another person; "Applicant" means any person or entity that applies for any authorization, franchise, lease, or permit pursuant to this title; "Cable Act" means the Cable Communications Policy Act of 1984 and the Cable Television Con- sumer Protection and Competition Act of 1992; "Cable facilities" means equipment and wiring used to transmit audio and video signals to sub- scribers; "Cable operator" means a telecommunications carrier providing or offering to provide "cable ser- vice" within the city as that term is defined in the Cable Act; "Cable service," for the purpose of this title, shall have the same meaning provided by the Cable Act; "Cable system" means a facility, consisting of a set of closed transmission paths and associated sig- nal generation, reception, and control equipment that is designed to provide cable service and other service to subscribers; "City" means the city of Medina, Washington; "City property" means and includes all real property owned by the city, other than public streets and utility easements as those terms are defined herein, and all property held in a propri- etary capacity by the city, which are not subject to right-of-way licensing and franchising; "Council" means the city council of the city of Medina, Washington acting in its official capacity; "Data communication" means: 1. The transmission of encoded information, or 2. The transmission of data from one point to another; "Emergency" means a condition of imminent danger to the health, safety, and welfare of prop- erty or persons located within the city including, 19.02.020 without limitation, damage to persons or property from natural consequences, such as storms, earth- quakes, riots or wars; "Excess capacity" means the volume or capacity in any existing or future duct, conduit, manhole, handhole or other utility facility within the public way that is or will be available for use for addi- tional telecommunications facilities; "FCC" or "Federal Communications Commis- sion" means the federal administrative agency, or lawful successor, authorized to regulate and over- see telecommunications carriers, services and pro- viders on a national level; "Fiber optics" means the technology of guiding and projecting light for use as a communications medium; "Franchise" shall mean the initial authorization, or renewal thereof, approved by an ordinance of the city, which authorizes the franchisee to con- struct, install, operate, or maintain telecommunica- tions facilities in, under, over, or across rights -of - way of the city and to also provide telecommunica- tions service to persons or areas in the city; "Franchisee" means the person, firm or corpora- tion to whom or which a franchise, as defined in this section, is granted by the council under this title and the lawful successor, transferee or assignee of said person, firm or corporation subject to such conditions as may be defined in this title; "Open video system" or "OV S" refers to a facil- ity consisting of a set of transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable ser- vice, which is provided to multiple subscribers within a community, and which the Federal Com- munications Commission or its successors has cer- tified as compliant with Part 76 of its rules, 47 C.F.R., Part 76, as amended from time -to -time; "Operator" means the person, firm or corpora- tion to whom a franchise is granted pursuant to the provisions of this title; "Overhead facilities" means utility poles, utility facilities and telecommunications facilities located above the surface of the ground, including the underground supports and foundations for such facilities; "Person" means and includes corporations, companies, associations, joint stock companies or associations, firms, partnerships, limited liability companies and individuals and includes their les- sors, trustees and receivers; "Property of franchisee" means all property owned, installed or used by a franchisee in the con- 19-4 duct of its business in the city under the authority of a franchise granted pursuant to this title; "Proposal" means the response, by an individual or organization, to a request by the city regarding the provision of cable services; or an unsolicited plan submitted by an individual or organization seeking to provide cable services in the city; "Right-of-way" means land acquired or dedi- cated for public roads and streets, but does not include state highways or land dedicated for roads, streets and highways not opened and not improved for motor vehicle use by the public; "State" means the state of Washington; "Surplus space" means that portion of the usable space on a utility pole which has the necessary clearance from other pole users, as required by the federal or state orders and regulations, to allow its use by a telecommunications carrier for a pole attachment; "Telecommunications carrier" means and includes every person that directly or indirectly owns, controls, operates or manages plant, equip- ment or property within the city, used or to be used for the purpose of offering telecommunications service; "Telecommunications facilities" means the plant, equipment and property, including but not limited to, cables, wires, conduits, ducts, pedestals, antennas, electronics and other appurtenances used or to be used to transmit, receive, distribute, pro- vide or offer telecommunications services; "Telecommunications provider" means and includes every person who provides telecommuni- cations services over telecommunications facilities without any ownership or management control of the facilities; "Telecommunications service" means the pro- viding or offering for rent, sale or lease, or in exchange for other value received, of the transmit- tal of voice, data, image, graphic and video pro- gramming information between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or similar facilities, with or without benefit of any closed transmission medium; "Telecommunications system" see "telecom- munications facilities"; "Underground facilities" means utility and tele- communications facilities located under the sur- face of the ground, excluding the underground foundations or supports for overhead facilities; "Universal service" means a level of and defini- tion of telecommunications services as the term is defined by the FCC through its authority granted pursuant to Section 254 of the Act; Medina Municipal Code "Usable space" means the total distance between the top of a utility pole and the lowest pos- sible attachment point that provides the minimum allowable vertical clearance as specified in any federal or state orders and regulations; "Utility facilities" means the plant, equipment and property, including but not limited to the poles, pipes, mains, conduits, ducts, cables, wires, plant and equipment located under, on or above the sur- face of the ground within the rights -of -way of the city and used or to be used for the purpose of pro- viding utility or telecommunications services. (Ord. 692 § 1, 2001) 19.02.030 Telecommunications right-of-way use authorization required. Except as otherwise provided herein, any tele- communications carrier who desires to construct, install, operate, maintain, or otherwise locate tele- communications facilities in, under, over or across any public way of the city for the sole purpose of providing telecommunications service to persons and areas outside the city shall first obtain a tele- communications right-of-way use authorization granting the use of such rights -of -way from the city pursuant to Chapter 19.04 MMC. (Ord. 692 § 1, 2001) 19.02.040 Telecommunications franchise required. Except as otherwise provided herein, any tele- communications carrier who desires to construct, install, operate, maintain or otherwise locate tele- communications facilities in, under, over or across any public way of the city, and to also provide tele- communications service to persons or areas in the city, shall first obtain a telecommunications fran- chise granting the use of such rights -of -way from the city pursuant to Chapter 19.06 MMC. (Ord. 692 § 1, 2001) 19.02.050 Cable television franchise required. Except as otherwise provided herein, any tele- communications carrier or other person who desires to construct, install, operate, maintain or locate cable or telecommunications facilities in any public way in the city for the purpose of providing cable service to persons in the city shall first obtain a cable franchise from the city. Said franchises shall be negotiated on a case -by -case basis taking into account the terms and provisions of existing such franchises and the requirements of the Cable Acts of 1984 and 1992; provided, however, unless otherwise authorized or exempted by the terms of 19-5 19.02.090 an unexpired franchise, lease or agreement, cable service operators shall comply with the relevant provisions of Chapters 19.10 and 19.12 MMC. (Ord. 692 § 1, 2001) 19.02.060 Facilities lease required. No telecommunications carrier or other entity who desires to locate telecommunications or other equipment on city property shall locate such facil- ities or equipment on city property unless granted a facilities lease from the city pursuant to Chapter 19.08 MMC. The city council reserves unto itself the sole discretion to lease city property for tele- communications and other facilities, and no vested or other right shall be created by any provision of this title. (Ord. 692 § 1, 2001) 19.02.070 Construction permits required. Except as otherwise provided herein, the holder of an authorization, franchise, or lease granted pur- suant to this title, and the holders of cable fran- chises granted by the city, and telecommunication providers claiming to have a state-wide grant to oc- cupy the rights -of -way, shall, in addition to said au- thorization, franchise, or lease, be required to obtain a construction permit from the city pursuant to Chapter 19.12 MMC. No work, construction, de- velopment, excavation, or installation of any equip- ment or facilities shall take place within the rights - of -way or upon city property until such time as the construction permit is issued. (Ord. 692 § 1, 2001) 19.02.080 Application to existing franchise ordinances, agreements, leases, and permits — Effect of other laws. A. These provisions shall have no effect on any existing franchise ordinance, franchise agreement, lease, permit, or other authorization to use or occupy a public way in the city until: 1. The expiration of said franchise ordinance, agreement, lease, permit, or authorization; or 2. An amendment to an unexpired franchise ordinance, franchise agreement, lease, permit, or authorization that has been approved, unless both parties agree to defer full compliance to a specific date not later than the present expiration date. B. Nothing in these provisions shall be deemed to create an obligation upon any person for which the city is forbidden to require pursuant to federal, state, or other law. (Ord. 692 § 1, 2001) 19.02.090 Universal service. Except as otherwise provided herein, all cable operators, telecommunications carriers, and tele- 19.02.100 communications providers engaged in the business of transmitting, supplying or furnishing telecom- munications service of any kind originating or ter- minating in the city are subject to the city's right, which is expressly reserved, to require said opera- tor, carrier, or provider to make an equitable and nondiscriminatory contribution to the preservation and advancement of universal service to the extent permitted by state and federal law. (Ord. 692 § 1, 2001) 19.02.100 General penalties. A. Civil Penalty. 1. Any person, and the officers, directors, managing agents, or partners of any corporation, firm, partnership or other organization or business violating or failing to comply with any of the pro- visions of this title shall be subject to a penalty in an amount not less than $100.00 nor more than $1,000 per day for each violation from the date set for compliance until compliance with the order is achieved. 2. In addition to any penalty which may be imposed by the city, any person violating or failing to comply with any of the provisions of this title shall be liable for all damage to public or private property arising from such violation, including the cost of restoring the affected area in accordance with the city's development guidelines. 3. The penalty imposed by this section shall be collected by civil action brought by the city attorney. B. Criminal Penalty. Any person, and the offic- ers, directors, managing agents, or partners of any corporation, firm, partnership or other organization or business violating or failing to comply with any of the applicable provisions of this title shall be subject to criminal prosecution and upon convic- tion of such violation shall be fined in a sum not exceeding $5,000 or be imprisoned for a term not exceeding one year or be both fined and impris- oned. Each day of noncompliance with any of the applicable provisions of the title shall constitute a separate offense. C. Additional Relief. The city may seek legal or equitable relief to enjoin any acts or practices and abate any condition which constitutes or will con- stitute a violation of the applicable provisions of this title when civil or criminal penalties are inade- quate to effect compliance. In addition to the pen- alties set forth in this section, violation of the terms of this title may also result in the revocation of any authorization, franchise, approval, lease, or permit 19-6 issued or granted hereunder, as set forth in this title. (Ord. 692 § 1, 2001) 19.02.110 Initial inquiry/responsibilities. Initial inquiries regarding cable television and telecommunications franchises, telecommunica- tions right-of-way authorizations or facilities leases shall be directed to the city manager or designee for determination of which type or types of agreements and permits are required. The city manager or des- ignee shall have lead responsibility for negotiating authorizations, franchises and leases. (Ord. 692 § 1, 2001) 19.02.120 Other remedies. Nothing in this chapter shall be construed as limiting any judicial remedies that the city may have, at law or in equity, for enforcement of this title. (Ord. 692 § 1, 2001) 19.02.130 Fees and compensation not a tax. The fees, charges and fines provided for in this title and any compensation charged and paid for the rights -of -way provided for herein, whether financial or in -kind, are separate from, and addi- tional to, any and all federal, state, local, and city taxes as may be levied, imposed or due from a tele- communications carrier or provider, its customers or subscribers or on account of the lease, sale, delivery or transmission of telecommunications services. (Ord. 692 § 1, 2001) Medina Municipal Code Chapter 19.04 TELECOMMUNICATIONS RIGHT-OF- WAY USE AUTHORIZATIONS Sections: 19.04.010 Telecommunications right-of-way use authorization. 19.04.020 Telecommunications right-of-way use authorization application. 19.04.030 Issuance/denial of telecommunications right-of-way use authorization. 19.04.040 Appeal of city manager's decision. 19.04.050 Agreement. 19.04.060 Nonexclusive grant. 19.04.070 Rights granted. 19.04.080 Term of telecommunications right-of- way use authorization. 19.04.090 Specified route. 19.04.100 Service to city users. 19.04.110 Compensation to the city. 19.04.120 Amendment of authorization. 19.04.130 Renewal of telecommunications right- of-way use authorization. 19.04.140 Standards for renewal of authorization. 19.04.1.50 Obligation to cure as a condition of renewal. 19.04.160 Universal service. 19.04.170 Annual fee for recovery of city costs. 19.04.180 Other city costs. 19.04.010 Telecommunications right-of-way use authorization. A telecommunications right-of-way use authori- zation shall be required of any telecommunications carrier or provider who desires to occupy specific rights -of -way of the city for the sole purpose of providing telecommunications services to persons or areas outside the city. (Ord. 692 § 2, 2001) 19.04.020 Telecommunications right-of-way use authorization application. Any person that desires a telecommunications right-of-way use authorization pursuant to this chapter shall file an application with the city clerk which shall include the following information: A. The name of the applicant, including all affiliates of the applicant; B. A description of the telecommunications services that are or will be offered or provided by the applicant over its telecommunications facili- ties; 19-7 19.04.020 C. A description of the transmission medium that will be used by the applicant to offer or pro- vide such telecommunications services; D. Preliminary engineering plans, specifica- tions and a network map of the facilities to be lo- cated within the city, all in sufficient detail to identify: 1. The location and route requested for appli- cant's proposed telecommunications facilities; 2. The location of all overhead and under- ground public utility, telecommunication, cable, water, sewer drainage and other facilities in the public way along the proposed route; 3. The location(s), if any, for interconnection with the telecommunications facilities of other telecommunications carriers; and 4. The specific trees, structures, improve- ments, facilities and obstructions, if any, that appli- cant proposes to temporarily or permanently remove or relocate; E. If applicant is proposing to install overhead facilities, evidence that surplus space is available for locating its telecommunications facilities on existing utility poles along the proposed route; F. If applicant is proposing an underground installation in existing ducts or conduits within the rights -of -way, information in sufficient detail to identify: 1. The excess capacity currently available in such ducts or conduits before installation of appli- cant's telecommunications facilities; 2. The excess capacity, if any, that will exist in such ducts or conduits after installation of appli- cant's telecommunications facilities; and 3. Evidence of ownership or a right to use such ducts or conduits; G. If applicant is proposing an underground installation within new ducts or conduits to be con- structed within the rights -of -way: 1. The location proposed for the new ducts or conduits; and 2. The excess capacity that will exist in such ducts or conduits after installation of applicant's telecommunications facilities; H. A preliminary construction schedule and completion date; I. Information to establish that the applicant has obtained all other governmental approvals and per- mits to construct and operate the facilities, and to offer or provide the telecommunications services, including, but not limited to, evidence that the applicant has registered with the Washington Util- ities and Transportation Commission or is not required to so register; 19.04.030 J. All deposits or charges required pursuant to this chapter; and K. An application fee which shall be set by the city council by resolution. (Ord. 692 § 2, 2001) 19.04.030 Issuance/denial of telecommunications right-of-way use authorization. Within 120 days after receiving a complete application, the city manager or designee shall issue a written determination granting or denying the authorization in whole or in part. The 120-day limitation may be waived by the applicant and shall not apply if action by the city council is requested. If the authorization is denied, the written determi- nation shall include the reason(s) for denial. The decision to grant or deny an application for a tele- communications right-of-way use authorization shall be based upon the following standards: A. Whether the applicant has received all requi- site licenses, certificates, and authorizations from the Federal Communications Commission, the Washington Utilities and Transportation Commis- sion, and any other federal or state agency with jurisdiction over the activities proposed by the applicant; B. The capacity of the rights -of -way to accom- modate the applicant's proposed facilities; C. The capacity of the rights -of -way to accom- modate additional utility, cable, and telecommuni- cations facilities if the authorization is granted; D. The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the authorization is granted and efforts proposed to mitigate such damages or dis- ruption; E. The public interest in minimizing the cost and disruption of construction within the rights -of - way; F. Applicant's proposed compliance with the city's development guidelines; G. The effect, if any, on public health, safety and welfare if the authorization is granted; H. The availability of alternate routes and/or locations for the proposed facilities; I. Such other factors as may demonstrate that the grant to use the rights -of -way will or will not serve the community interest. (Ord. 692 § 2, 2001) 19.04.040 Appeal of city manager's decision. Any person aggrieved by the granting or deny- ing of a telecommunications right-of-way authori- zation or the renewal thereof pursuant to this 19-8 chapter shall have the right to appeal to the board of adjustment as,follows: A. All appeals filed pursuant to this section must be filed in writing with the city clerk within 10 days of the date of the decision appealed from; B. All appeals filed pursuant to this section shall specify the error of law or fact, or new evi- dence which could not have been reasonably avail- able at the time of the city manager's decision, which shall constitute the basis of the appeal; C. Unless substantial relevant information is presented which was not considered by the city manager, such decision shall be accorded substan- tial weight, but may be reversed or modified by the board of adjustment if, after considering all of the evidence in light of the applicable goals, policies, and provisions of this title, the board of adjustment determines that a mistake has been made. Where substantial new relevant information which was not considered in the making of the decision appealed from has been presented, the board of adjustment shall make its decision only upon the basis of the facts presented at the hearing of the appeal, or may elect to remand the matter for reconsideration by the city manager in light of the additional information. (Ord. 692 § 2, 2001) 19.04.050 Agreement. No authorization shall be deemed to have been granted hereunder until the applicant and the city have executed a written agreement setting forth the particular terms and provisions under which the grantee has been granted the right to occupy and use rights -of -way of the city. (Ord. 692 § 2, 2001) 19.04.060 Nonexclusive grant. No authorization granted under this chapter shall confer any exclusive right, privilege, license or franchise to occupy or use the rights -of -way of the city for delivery of telecommunications ser- vices or any other purposes. (Ord. 692 § 2, 2001) 19.04.070 Rights granted. No authorization granted under this chapter shall convey any right, title or interest in the rights - of -way, but shall be deemed an authorization only to use and occupy the rights -of -way for the limited purposes and term stated in the authorization. Fur- ther, no authorization shall be construed as any warranty of title. (Ord. 692 § 2, 2001) Medina Municipal Code 19.04.170 19.04.080 Term of telecommunications right- of-way use authorization. Unless otherwise specified in an authorization, no authorization granted hereunder shall be in effect for a term exceeding five years. (Ord. 692 § 2, 2001) 19.04.090 Specified route. A telecommunications right-of-way use authori- zation granted under this chapter shall be limited to a grant for use of specific rights -of -way and defined portions thereof. (Ord. 692 § 2, 2001) 19.04.100 Service to city users. A grantee shall be permitted to offer or provide telecommunications services to persons or areas within the city upon approval of an application for a telecommunications franchise pursuant to Chap- ter 19.06 MMC. (Ord. 692 § 2, 2001) 19.04.110 Compensation to the city. Each authorization granted pursuant to this chapter is subject to the city's right under the 1996 Federal Telecommunications Act, which is ex- pressly reserved, to annually fix a fair and reason- able compensation to be paid for the right to occupy and use the rights -of -way of the city granted under such authorization; provided, that nothing in this chapter shall prohibit the city and a grantee from agreeing to the compensation to be paid; provided further, that the compensation required from any telecommunications provider shall be consistent with state law. (Ord. 692 § 2, 2001) 19.04.120 Amendment of authorization. A new application shall be required of any tele- communications carrier or provider who desires to extend or locate its telecommunications facilities in rights -of -way of the city which are not included in an authorization previously granted under this title. If ordered by the city to locate or relocate its telecommunications facilities in rights -of -way not included in a previously granted authorization, the city shall grant an amendment to the authorization without further application. (Ord. 692 § 2, 2001) 19.04.130 Renewal of telecommunications right-of-way use authorization. A grantee that desires to renew its authorization under this chapter for an additional term shall, not more than 180 days nor less than 90 days before expiration of the current authorization, file an application with the city for renewal which shall include the following: 19-9 A. The information required pursuant to MMC 19.04.020; B. Any information required pursuant to the authorization agreement between the city and the grantee; C. All deposits or charges required pursuant to this chapter; and D. An application fee which shall be set by the city council by resolution. (Ord. 692 § 2, 2001) 19.04.140 Standards for renewal of authorization. Within 90 days after receiving a complete appli- cation for renewal, the city manager or designee shall issue a written determination granting or denying the renewal application in whole or in part. If the renewal application is denied, the written determination shall include the reason(s) for denial. The decision to grant or deny an application for the renewal of a telecommunications right-of- way use authorization shall, in addition to the stan- dards set forth in MMC 19.04.030, be based upon the following standards: A. The continuing capacity of the rights -of -way to accommodate the applicant's existing facilities; and B. The applicant's compliance with the require- ments of this title and the authorization. (Ord. 692 § 2, 2001) 19.04.150 Obligation to cure as a condition of renewal. No authorization shall be renewed until any ongoing violations or defaults in the grantee's per- formance under the authorization, or of the require- ments of this title, have been cured, or a plan detailing the corrective action to be taken by the grantee has been approved by the city manager. (Ord. 692 § 2, 2001) 19.04.160 Universal service. Each telecommunications right-of-way use authorization granted under this chapter is subject to the city's right, which is expressly reserved, to require the telecommunication carrier or provider to make an equitable and nondiscriminatory contri- bution to the preservation and advancement of uni- versal service to the extent permitted by state and federal law. (Ord. 692 § 2, 2001) 19.04.170 Annual fee for recovery of city costs. Each authorization granted under this chapter is subject to the city's right, which is expressly reserved, to annually fix a fair and reasonable com- 19.04.180 pensation to be paid as reimbursement for the city's costs in connection with reviewing, inspect- ing and supervising the use and occupancy of the rights -of -way on behalf of the public and existing or future users. (Ord. 692 § 2, 2001) 19.04.180 Other city costs. All grantees shall, within 30 days after written demand, reimburse the city for all direct and indi- rect costs, expenses and consultant fees incurred by the city in connection with any modification, amendment, renewal or transfer of the authoriza- tion or any authorization agreement. In addition, all grantees shall, within 30 days after written demand, reimburse the city for any and all costs the city rea- sonably incurs in response to any emergency in- volving the grantee's telecommunications facili- ties. All grantees shall, within 30 days after written demand, reimburse the city for the grantee's pro- portionate share of all actual, identified expenses incurred by the city in planning, constructing, in- stalling, repairing or altering any city facility as a result of the construction or the presence in the right-of-way of the grantee's telecommunications facilities. (Ord. 692 § 2, 2001) 19-10 Chapter 19.06 TELECOMMUNICATIONS FRANCHISE Sections: 19.06.010 Telecommunications franchise. 19.06.020 Franchise application. 19.06.030 Determination by the city. 19.06.040 Agreement. 19.06,050 Nonexclusive grant. 19.06.060 Term of franchise grant. 19.06.070 Rights granted. 19.06.080 Franchise territory. 19.06.090 Compensation to the city. 19.06.100 Nondiscrimination. 19.06.110 Amendment of franchise grant. 19.06.120 Renewal application. 19.06.130 Renewal determination. 19.06.140 Obligation to cure as a condition of renewal. 19.06.150 Universal service. 19.06.160 Annual fee for recovery of city costs. 19.06.170 Other city costs. 19.06.010 Telecommunications franchise. A telecommunications franchise shall be required of any telecommunications provider or carrier or other person who currently occupies or desires in the future to occupy rights -of -way of the city and to provide telecommunications services to any person or area in the city; provided, however, that no franchise shall be required for de minimis uses of rights -of -way made in conjunction with the placement of a wireless telecommunications facil- ity. (Ord. 692 § 3, 2001) 19.06.020 Franchise application. Any person who desires a telecommunications franchise pursuant to this chapter shall file an application with the city clerk which, in addition to the information required by MMC 19.04.020, shall include the following: A. Whether the applicant intends to provide ca- ble service, video dialtone service, other video pro- gramming service or telecommunication services, and sufficient information to determine whether such service is subject to cable franchising; B. An accurate map showing the location of any existing telecommunications facilities in the city that applicant intends to use or lease; C. A description of the services or facilities that the applicant will offer or make available to the city and other public, educational and governmental institutions; Medina Municipal Code 19.06.090 D. A description of applicant's access and line extension policies; E. The area or areas of the city the applicant desires to serve and a schedule for build -out to the entire franchise area; F. All fees, deposits or charges required pursu- ant to this chapter; G. Such other and further information as may be requested by the city; and H. An application fee which shall be set by the city council by resolution. (Ord. 692 § 3, 2001) 19.06.030 Determination by the city. Within 120 days after receiving a complete application under MMC 19.06.020, unless addi- tional time is reasonably necessary for action by the city council, the city shall issue a written deter- mination granting or denying the application in whole or in part. Prior to granting or denying a franchise under this chapter, the city council shall conduct a public hearing and make a decision based upon the standards set forth below. Pursuant to RCW 35A.47.040, the city council shall not approve any franchise hereunder until the next reg- ularly scheduled council meeting following the public hearing. If the application is denied, a writ- ten determination shall be included setting forth the reason for denial: A. Whether the applicant has received all requi- site licenses, certificates, and authorizations from the Federal Communications Commission, the Washington Utilities and Transportation Commis- sion, and any other federal or state agency with ju- risdiction over the activities proposed by the applicant; B. The capacity of the rights -of -way to accom- modate the applicant's proposed facilities; C. The capacity of the rights -of -way to accom- modate additional utility and telecommunications facilities if the franchise is granted; D. The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the franchise is granted; E. The public interest in minimizing the cost and disruption of construction within the rights -of - way; F. Applicant's proposed compliance with all applicable development guidelines; G. The effect, if any, on public health, safety and welfare if the franchise requested is granted; H. The availability of alternate routes and/or locations for the proposed facilities; I. Such other factors as may demonstrate that the grant to use the rights -of -way will or will not serve the community interest. (Ord. 692 § 3, 2001) 19.06.040 Agreement. No telecommunications franchise shall be deemed to have been granted hereunder until the applicant and the city have executed a written fran- chise agreement setting forth the particular terms and provisions under which the franchisee has been granted the right to occupy and use rights -of -way of the city. If the city determines it is in the public interest, the city and a franchisee may enter into an agreement that differs from one or more specific provisions of this chapter. (Ord. 692 § 3, 2001) 19.06.050 Nonexclusive grant. No franchise granted under this chapter shall confer any exclusive right, privilege, license or franchise to occupy or use the rights -of -way of the city for delivery of telecommunications services or any other purposes. (Ord. 692 § 3, 2001) 19.06.060 Term of franchise grant. Unless otherwise specified in a franchise agree- ment, a telecommunications franchise granted hereunder shall be valid for a term of five years. (Ord. 692 § 3, 2001) 19.06.070 Rights granted. No franchise granted under this chapter shall convey any right, title or interest in the rights -of - way, but shall be deemed a franchise only to use and occupy the rights -of -way for the limited pur- poses and term stated in the grant. Further, no fran- chise shall be construed as any warranty of title. (Ord. 692 § 3, 2001) 19.06.080 Franchise territory. Unless otherwise provided in the franchise agreement, a telecommunications franchise grant- ed under this chapter shall be limited to the specific geographic area of the city to be served by the fran- chisee, and the specific rights -of -way necessary to serve such areas. (Ord. 692 § 3, 2001) 19.06.090 Compensation to the city. Each franchise granted under this chapter is sub- ject to the city's right under the 1996 Telecommu- nications Act, which is expressly reserved, to annually fix a fair and reasonable compensation to be paid for the franchise rights granted to the fran- chisee; provided, that nothing in this chapter shall prohibit the city and a franchisee from agreeing to 19.06.100 the compensation to be paid; provided, further, that the compensation required from any telecommuni- cations provider or carrier shall be consistent with state law. (Ord. 692 § 3, 2001) 19.06.100 Nondiscrimination. A franchisee which purports to serve the general public shall make its telecommunications services available to any customer within its franchise area who shall request such service, without discrimina- tion as to the terms, conditions, rates or charges for the franchisee's services; provided, however, that nothing in this title shall prohibit a franchisee from making any reasonable classifications among dif- ferently situated customers. (Ord. 692 § 3, 2001) 19.06.110 Amendment of franchise grant. Except as otherwise provided within a franchise agreement, a new franchise application and grant shall be required of any telecommunications car- rier or provider that desires to extend its franchise territory or to locate its telecommunications facili- ties in rights -of -way of the city which are not included in a franchise previously granted under this chapter. If ordered by the city to locate or relo- cate its telecommunications facilities in rights -of - way not included in a previously granted franchise, the city shall grant a franchise amendment without further application. (Ord. 692 § 3, 2001) 19.06.120 Renewal application. A franchisee that desires to renew its franchise under this chapter for an additional term shall, not more than 180 days nor less than 120 days before expiration of the current franchise, file an applica- tion with the city for renewal of its franchise which shall include the following: A. The information required pursuant to MMC 19.06.020; B. Any information required pursuant to the franchise agreement between the city and the grantee; C. All deposits or charges required pursuant to this chapter; and D. An application fee which shall be set by the city council by resolution. (Ord. 692 § 3, 2001) 19.06.130 Renewal determination. Within 120 days after receiving a complete application for renewal under MMC 19.06.120, unless additional time is reasonably necessary for action by the city council, the city shall issue a written determination granting or denying the renewal application in whole or in part. Prior to 19-12 granting or denying renewal of a franchise under this chapter, the city council shall conduct a public hearing and make a decision based upon the stan- dards set forth below. If the renewal application is denied, the written determination shall include the reasons for nonrenewal. A. The continuing capacity of the rights -of -way to accommodate the applicant's existing facilities. B. The applicant's compliance with the require- ments of this chapter and the franchise agreement. C. Applicable federal, state and local telecom- munications laws, rules and policies. D. Such other factors as may demonstrate that the continued grant to use the rights -of -way will or will not serve the community interest. (Ord. 692 § 3, 2001) 19.06.140 Obligation to cure as a condition of renewal. No franchise shall be renewed until any ongoing violations or defaults in the franchisee's perfor- mance of the franchise agreement, or of the requirements of this title, have been cured, or a plan detailing the corrective action to be taken by the franchisee has been approved by the city. (Ord. 692 § 3, 2001) 19.06.150 Universal service. Each franchise granted under this chapter is sub- ject to the city's right under the 1996 Telecommu- nications Act, which is expressly reserved, to require the franchisee to make an equitable and nondiscriminatory contribution to the preservation and advancement of universal service to the extent permitted by state and federal law. (Ord. 692 § 3, 2001) 19.06.160 Annual fee for recovery of city costs. Subject to the 1996 Telecommunications Act, each franchise granted under this chapter is subject to the city's right, which is expressly reserved, to annually fix a fair and reasonable compensation to be paid as reimbursement for the city's costs in connection with reviewing, inspecting and super- vising the use and occupancy of the rights -of -way on behalf of the public and existing or future users. (Ord. 692 § 3, 2001) 19.06.170 Other city costs. All franchisees shall, within 30 days after written demand, reimburse the city for all direct and indi- rect costs, expenses and consulting fees incurred by the city in connection with any modification, amendment, renewal or transfer of the franchise or Medina Municipal Code 19.07.020 any franchise agreement. In addition, all franchi- sees shall, within 30 days after written demand, re- imburse the city for any and all costs the city reasonably incurs in response to any emergency in- volving the franchisee's telecommunications facil- ities. Finally, all franchisees shall, within 30 days after written demand, reimburse this city for the franchisee's proportionate share of all actual, iden- tified expenses incurred by the city in planning, constructing, installing, repairing or altering any city facility as a result of the presence in the right- of-way of the franchisee's telecommunications fa- cilities. (Ord. 692 § 3, 2001) 19-13 Chapter 19.07 SPECIAL RULES APPLICABLE TO OPEN VIDEO SYSTEMS Sections: 19.07.010 Open video systems franchise required. 19.07.020 Open video system franchise — Contents of application for initial or renewal franchise. 19.07.030 Applications for transfer. 19.07.040 City review. 19.07.050 Compensation. 19.07.060 Annual reports. 19.07.010 Open video systems franchise required. No person, partnership, corporation or other entity shall offer open video system programming or operate an open video system as defined in MMC 19.02.020 without first obtaining a franchise from the city of Medina. (Ord. 692 § 4, 2001) 19.07.020 Open video system franchise — Contents of application for initial or renewal franchise. In order to obtain an initial or renewal franchise, an operator of an open video system must apply for a franchise. The application must contain the fol- lowing information, and such information as the city may from time to time require: A. Identity of the applicant; the persons who exercise working control over the applicant; and the persons who control those persons, to the ulti- mate parent. B. A proposal for construction of the open video system that includes at least the following: 1. A description of the services that are to be provided over the facility; 2. Identification of the area of the city to be served by the proposed system, including a description of the proposed franchise area bound- aries; 3. The location of the proposed facility and facility design, including a description of the miles of plant to be installed, and a description of the size of equipment cabinets, shielding and electronics that will be installed along the plant route, the power sources that will be used and a description of the noise, exhaust and pollutants, if any, that will be generated by the operation of the same; 4. A map of the route the facility will follow; a description of the portions of the system that will m ■ 19.07.030 be placed aboveground and the portions that will be placed underground, and the construction tech- niques that the operator proposes to use in install- ing the system aboveground and underground; a schedule for construction of the facility, describing when and where construction will begin, how it will proceed, and when it will be completed; and the expected effect on right-of-way usage, includ- ing information on the ability of the public rights - of -way to accommodate the proposed system, including, as appropriate given the system pro- posed, an estimate of the availability of space in conduits and an estimate of the cost of any neces- sary rearrangement of existing facilities; 5. A description, where appropriate, of how services will be converted from existing facilities to new facilities, and what will be done with exist- ing facilities; 6. Evidence satisfactory to the city that the applicant has the financial resources to complete the proposed project, and to construct, operate and repair the proposed facility over the franchise term. It is not the intent of the city to require an applicant to prove that the services it proposes to offer will succeed in the marketplace; 7. Evidence satisfactory to the city that applicant is technically qualified to construct, operate and repair the proposed facility. At a mini- mum, the applicant must show that it has experi- ence or resources to ensure that work is to be performed adequately, and can respond to emer- gencies during and after construction is complete; 8. Evidence satisfactory to the city that the applicant is legally qualified, which proof must include a demonstration that the applicant: a. Has received, or is in a position to receive, necessary authorizations from state and federal authorities; b. Has not engaged in conduct (fraud, racketeering, violation of antitrust laws, consumer protection laws, or similar laws) that allows the city to conclude the applicant cannot be relied upon to comply with requirements of franchise, or provi- sions of this title; c. Is willing to enter into a franchise, to pay required compensation and to abide by the pro- visions of applicable law, including those relating to the construction, operation or maintenance of its facilities, and has not entered into any agreement that would prevent it from doing so; 9. An affidavit or declaration of the applicant or authorized officer thereof certifying the truth and accuracy of the information in the application, 19-14 and certifying that the application meets all requirements of applicable law; 10. An application or renewal fee which shall be set by the city council by resolution. C. An applicant may show that it would be inappropriate to deny it a franchise under subsec- tion (13)(8)(b) of this section, by virtue of the par- ticular circumstances surrounding the acts or omissions at issue; the steps taken by the applicant to cure all harms flowing therefrom and to prevent their recurrence; and the lack of involvement of the applicant's principals, or the remoteness of the acts or omissions from the operation of open video sys- tem facilities. D. To the extent that the applicant is in any respect relying on the financial or technical resources of another person, including another affiliate, the proofs required by subsections (13)(5) through (13)(7) of this section should be provided for that person. An applicant will be presumed to have the requisite financial, or technical or legal qualifications to the extent such qualifications have been reviewed and approved by a state agency of competent jurisdiction; or if applicant is a holder of a franchise in the city for a cable system or open video system, and conduct under such other fran- chise provides no basis for additional investiga- tion. (Ord. 692 § 4, 2001) 19.07.030 Applications for transfer. An application for the transfer of an existing franchise must contain the same information required by MMC 19.07.020, except that, if the transferor submitted an application under MMC 19.07.020, to the extent information provided by the transferor under MMC 19.07.020(B) remains accurate, the transferee may simply cross-refer- ence the earlier application. (Ord. 692 § 4, 2001) 19.07.040 City review. The city may request such additional informa- tion as it finds necessary, and require such modifi- cations to the application as may be necessary in the exercise of the city's authority over open video systems. Once the information required by the city has been provided, the application shall be subject to review by the city and any approval will also be subject to a city determination that: A. The applicant has the qualifications to con- struct, operate and repair the system proposed in conformity with applicable law; B. The applicant will accept the modifications required by the city to its proposed system; Medina Municipal Code C. The applicant will enter into a franchise and comply with any required conditions, including but not limited to the obligation to establish intercon- nections for provision of local access channels des- ignated by the city; D. In the case of a transfer, the approval is also subject to a determination that: 1. There will be no adverse effect on the pub- lic interest, or the city's interest in the franchise; 2. Transferee will agree to be bound by all the conditions of the franchise and to assume all the obligations of its predecessor; and 3. Any outstanding compliance and compen- sation issues will be resolved to the satisfaction of the city; E. An applicant shall not be issued a franchise if it files or has in the previous three years filed materially inaccurate or misleading information in a franchise application or intentionally withheld information that the applicant lawfully is required to provide. (Ord. 692 § 4, 2001) 19.07.050 Compensation. Every operator of an open video system shall pay compensation to the city in the amount set forth in the franchise, which amount shall be sub- ject to annual adjustment. To the extent that the open video system is used for the provision of telecommunications services, the open video system operator shall pay the fee required for telecommunications providers. (Ord. 692 § 4, 2001) 19.07.060 Annual reports. No later than 90 days after the end of its fiscal year, a cable operator shall submit a written report that shall contain such information as may be required from time to time by the city, and at least the following, unless the city waives the require- ment: A. A summary of the previous year's activities in the development of the open video system, including descriptions of services begun or discon- tinued, the number of subscribers gained or lost for each category of cable service; B. A revenue report from the previous calendar year for the open video system, certified by the operator's chief financial officer; C. An ownership report, including all persons who at the time of filing control or own an interest in the open video system operator of 10 percent or more; D. A list of officers and members of the board of directors of the franchisee and any affiliates 19-15 19.07.060 directly involved in the operation or the mainte- nance of the open video system; E. A complete report on its plant. This plant report shall state the physical miles of plant con- struction and plant in operation during the prior calendar year categorized as aerial and under- ground, identify any cases where subscribers con- tributed to plant extension, provide revisions to the open video system maps filed with the city, and report the results of appropriate electronic mea- surements to show conformity with FCC technical standards; F. Once the information required by subsec- tions (A) through (E) of this section has been filed, it need be refiled only if it changes. (Ord. 692 § 4, 2001) 19.08.010 Chapter 19.08 FACILITIES LEASE Sections: 19.08.010 Facilities lease. 19.08.020 Lease application. 19.08.030 Determination by the city. 19.08.040 Agreement. 19.08.050 Nonexclusive lease. 19.08.060 Term of facilities lease. 19.08.070 Rights granted. 19.08.080 Interference with other users. 19.08.090 Ownership and removal of improvements. 19.08.100 Compensation to the city. 19.08.110 Amendment of facilities lease. 19.08.120 Renewal application. 19.08.130 Renewal detennination. 19.08.140 Obligation to cure as a condition of renewal. 19.08.010 Facilities lease. The city council may, in its sole discretion which is hereby reserved, approve facilities leases for the location of telecommunications facilities and other facilities upon city property other than rights -of - way. Neither this section, nor any other provision of this title shall be construed to create an entitle- ment or vested right in any person or entity of any type. Facilities leases granted for the installation and/or construction of wireless communications fa- cilities shall also comply with the terms and provi- sions of Chapter 17.90 MMC. (Ord. 692 § 5, 2001) 19.08.020 Lease application. Any person that desires to solicit the city's approval of a facilities lease pursuant to this chap- ter shall file a lease proposal with the city's clerk which, in addition to the information required by MMC 19.04.020, shall include the following: A. A description of the telecommunications facilities or other equipment proposed to be located upon city property; B. A description of the city property upon which the applicant proposes to locate telecommu- nications facilities or other equipment; C. Preliminary plans and specifications in suffi- cient detail to identify: 1. The location(s) of existing telecommuni- cations facilities or other equipment upon the city property, whether publicly or privately owned; 19-16 2. The location and source of electric and other utilities required for the installation and oper- ation of the proposed facilities; D. Accurate scale conceptual drawings and dia- grams of sufficient specificity to analyze the aes- thetic impacts of the proposed telecommunications facilities or other equipment; E. Whether the applicant intends to provide cable service, video dialtone service or other video programming service, and sufficient information to determine whether such service is subject to cable franchising; F. An accurate map showing the location of any existing telecommunications facilities in the city that the applicant intends to use or lease; G. A description of the services or facilities that the applicant will offer or make available to the city and other public, educational, and governmental institutions; H. Such other and further information as may be requested by the city; and I. An application fee which shall be set by the city council by resolution. (Ord. 692 § 5, 2001) 19.08.030 Determination by the city. Recognizing that the city is under no obligation to grant a facilities lease for the use of city prop- erty, the city shall strive to consider and take action on applications for facilities leases within 120 days after receiving a complete application for such a lease unless additional time is reasonably neces- sary for action by the city council. When such action is taken, the city shall issue a written deter- mination granting or denying the lease in whole or in part, applying the standards set forth below, or any other such criteria as the city council may choose to apply. If the lease application is denied, the determination shall include the reason for denial, if any. A. The capacity of the city property and rights - of -way to accommodate the applicant's proposed facilities; B. The capacity of the city property and rights - of -way to accommodate additional utility and tele- communications facilities if the lease is granted; C. The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the lease is granted; D. The public interest in minimizing the cost and disruption of construction upon city property and within the rights -of -way; E. The service that applicant will provide to the community and region; Medina Municipal Code 19.08.090 F. The effect, if any, on public health, safety, and welfare if the lease requested is approved; G. The availability of alternate routes and/or locations for the proposed facilities; H. Whether the applicant is in compliance with applicable federal and state telecommunications laws, regulations and policies, including, but not limited to, the registration requirements adminis- tered by the Washington Utilities and Transporta- tion Commission; I. The potential for radio frequency and other interference with existing public and private tele- communications or other facilities located upon the city property; J. The potential for radio frequency and other interference or impacts upon residential, commer- cial, and other uses located within the vicinity of the city property; K. Such other factors, such as aesthetics, as may demonstrate that the lease to use the city prop- erty will or will not serve the community interest; L. The maximization of co -location opportuni- ties with other similar uses. (Ord. 692 § 5, 2001) 19.08.040 Agreement. No facilities lease shall be deemed to have been granted hereunder until the applicant and the city have executed a written agreement setting forth the particular terms and provisions under which the lessee has been granted the right to occupy and use the city property. (Ord. 692 § 5, 2001) 19.08.050 Nonexclusive lease. No facilities lease granted under this chapter shall confer any exclusive right, privilege, license, or franchise to occupy or use city property for delivery of telecommunications services or any other purposes. (Ord. 692 § 5, 2001) 19.08.060 Term of facilities lease. Unless otherwise specified in a lease agreement, a facilities lease granted hereunder shall be valid for a term of one year, subject to annual renewal as provided in this chapter. (Ord. 692 § 5, 2001) 19.08.070 Rights granted. No facilities lease granted under this chapter shall convey any right, title or interest in the city property, but shall be deemed a license only to use and occupy the city property for the limited pur- poses and term stated in the lease agreement. Fur- ther, no facilities lease shall be construed as any warranty of title. (Ord. 692 § 5, 2001) 19-17 19.08.080 Interference with other users. No facilities lease shall be granted under this chapter unless it contains a provision which is sub- stantially similar to the following: The City has previously entered into or may enter into leases with other tenants for their equipment and antenna facilities. Lessee acknowledges that the City may lease the City property for the purposes of transmitting and receiving telecommunica- tion signals from the City property. The City, however, is not in any way responsi- ble or liable for any interference with Les- see's use of the City property which may be caused by the use and operation of any other tenant's equipment, even if caused by new technology. In the event that any other tenant's activities interfere with the Lessee's use of the City property, and the Lessee cannot work out this interference with the other tenants, the Lessee may, upon 30 days' notice to the City, terminate this lease and restore the City property to its original condition, reasonable wear and tear excepted. The Lessee shall cooperate with all other tenants to identify the causes of and work towards the resolution of any electronic interference problem. In addi- tion, the Lessee agrees to eliminate any radio or television interference caused to City -owned facilities or surrounding resi- dences at Lessee's own expense and without installation of extra filters on City - owned equipment. Lessee further agrees to accept such interference as may be re- ceived from City operated telecommunica- tions or other facilities located upon the City property subject to this lease. (Ord. 692 § 5, 2001) 19.08.090 Ownership and removal of improvements. No facilities lease shall be granted under this chapter unless it contains a provision which states that all buildings, landscaping, and all other im- provements, except telecommunications equip- ment, shall become the property of the city upon expiration or termination of the lease. In the event that the city requires removal of such improve- ments, such removal shall be accomplished at the sole expense of the lessee and completed within 90 days after receiving notice from the city requiring removal of the improvements. In the event that tele- 19.08.100 communications facilities or other equipment are left upon city property after expiration or termina- tion of the lease, they shall become the property of the city if not removed by the lessee upon 30 days' written notice from the city. (Ord. 692 § 5, 2001) 19.08.100 Compensation to the city. Each facilities lease granted under this chapter is subject to the city's right, which is expressly reserved, to annually fix a fair and reasonable com- pensation to be paid for the rights granted to the lessee; provided, nothing in this title shall prohibit the city and a lessee from agreeing to the compen- sation to be paid. Such compensation shall be pay- able in advance of the effective date of the lease and on or before January 31 st of each calendar year. Any payments received after the due date shall include a late payment penalty of two percent of the annual rental fee for each day or part thereof past the due date. The compensation shall be nego- tiated by the city manager or designee, subject to the city council's final approval, based on the fol- lowing criteria: A. Comparable lease rates for other public or private property; B. In the case land is leased, the value of the land and any associated air space; C. If structure of another user is involved, any amount needed to reimburse that user, in addition to the above; D. A yearly escalator rate commonly used in comparable leases; E. Any unique characteristics of the leased area tending to affect the value of the leasehold. (Ord. 692 § 5, 2001) 19.08.110 Amendment of facilities lease. Except as provided within an existing lease agreement, anew lease application and lease agree- ment shall be required of any telecommunications carrier or other entity that desires to expand, mod- ify, or relocate its telecommunications facilities or other equipment located upon city property. If or- dered by the city to locate or relocate its telecom- munications facilities or other equipment on the city property, the city shall grant a lease amend- ment without further application. (Ord. 692 § 5, 2001) 19.08.120 Renewal application. A lessee that desires to renew its facilities lease under this chapter shall, not more than 180 days nor less than 120 days before expiration of the cur- rent facilities lease, file an application with the city 19-18 for renewal of its facilities lease which shall include the following: A. The information required pursuant to MMC 19.08.020; B. Any information required pursuant to the facilities lease agreement between the city and the lessee; C. All deposits or charges required pursuant to this chapter; and D. A renewal fee which shall be set by the city council by resolution. (Ord. 692 § 5, 2001) 19.08.130 Renewal determination. Recognizing that the city is under no obligation to grant a renewal of a facilities lease for the use of city property, the city shall strive to consider and take action on applications for renewal of such leases within 60 days after receiving a complete application for such a lease renewal unless addi- tional time is reasonably necessary for action by the city council. When such action is taken, the city shall issue a written determination granting or denying the lease renewal in whole or in part, applying the standards set forth below, or any other such criteria as the city council may choose to apply. If the renewal application is denied, the written determination shall include the reason for denial, if any: A. The financial and technical ability of the applicant; B. The legal ability of the applicant; C. The continuing capacity of the city property to accommodate the applicant's existing facilities; D. The applicant's compliance with the require- ments of this chapter and the lease agreement; E. Applicable federal, state and local telecom- munications laws, rules and policies; F. Such other factors as may demonstrate that the continued grant to use the city property ways will or will not serve the community interest. (Ord. 692 § 5, 2001) 19.08.140 Obligation to cure as a condition of renewal. No facilities lease shall be renewed until any ongoing violations or defaults in the lessee's per- formance of the lease agreement, or of the require- ments of this title, have been cured, or a plan detailing the corrective action to be taken by the lessee has been approved by the city. (Ord. 692 § 5, 2001) Medina Municipal Code Chapter 19.10 CONDITIONS OF TELECOMMUNICATIONS RIGHT-OF-WAY USE AUTHORIZATIONS, FRANCHISES, AND FACILITIES LEASES Sections: 19.10.010 Purpose. 19.10.020 Acceptance. 19.10.030 Police power. 19.10.040 Rules and regulations by the city. 19.10.050 Location of facilities. 19.10.060 Conduit occupancy. 19.10.070 Occupancy of city -owned conduit. 19.10.080 Compliance with One Number Locator Service. 19.10.090 Construction permits. 19.10.100 Interference with rights -of -way. 19.10.110 Damage to property. 19.10.120 Notice of work. 19.10.130 Repair and emergency work. 19.10.140 Maintenance of facilities. 19.10.150 Relocation or removal of facilities. 19.10.160 Building moving. 19.10.170 Removal of unauthorized facilities. 19.10.180 Emergency removal or relocation of facilities. 19.10.190 Damage to facilities. 19.10.200 Restoration of rights -of -way, other ways, and city property. 19.10.210 Facilities maps. 19.10.220 Duty to provide information. 19.10.230 Leased capacity. 19.10.240 Insurance. 19.10.250 General indemnification. 19.10.260 Performance and construction surety 19.10.270 Security fund. 19.10.280 Restoration bond. 19.10.290 Coordination of construction activities. 19.10.300 Assignments or transfers of grant. 19.10.310 Transactions affecting control of grant. 19.10.320 Revocation or termination of grant. 19.10.330 Notice and duty to cure. 19.10.340 Hearing. 19.10.350 Standards for revocation or lesser sanctions. 19.10.360 Incorporation by reference. 19.10.370 Notice of entry on private property. 19.10.380 Safety requirements. 19-19 19.10.040 19.10.390 Most favored community. 19.10.400 Relationship with WUTC proceedings. 19.10.010 Purpose. The purpose of this chapter is to set forth certain terms and conditions which are common to all tele- communications right-of-way use authorizations, telecommunications franchises, and facilities leases. Except as otherwise provided in this title or in such an authorization, franchise, or lease, the provisions of this chapter apply to all such authori- zations, franchises, and leases approved or granted by the city. (Ord. 692 § 6, 2001) 19.10.020 Acceptance. No authorization, franchise, or lease granted pursuant to the provisions of this title shall become effective unless and until the ordinance or other city action granting the same has become effective. Within 30 days after the effective date of the ordi- nance or other city action granting an authoriza- tion, franchise, or lease, or within such extended period of time as the council in its discretion may authorize, the applicant shall file with the city administrator an unconditional written acceptance of the authorization, franchise, or lease, in a form satisfactory to the city attorney, together with the bonds, insurance policies, and security fund required by this chapter. (Ord. 692 § 6, 2001) 19.10.030 Police power. In accepting any authorization, franchise or lease, the grantee, franchisee, or lessee acknowl- edges that its rights hereunder are subject to the legitimate rights of the police power of the city to adopt and enforce general ordinances necessary to protect the safety and welfare of the public, and it agrees to comply with all applicable general laws enacted by the city pursuant to such power. (Ord. 692 § 6, 2001) 19.10.040 Rules and regulations by the city. In addition to the inherent powers of the city to regulate and control any authorization, franchise, or lease it issues, the authority granted to it by the Cable Act and the Telecommunications Act of 1996, and those powers expressly reserved by the city, or agreed to and provided for in any authori- zation, franchise, or lease, the right and power is hereby reserved by the city to promulgate such additional regulations as it may find necessary in the exercise of its lawful powers giving due regard to the rights of grantees, franchisees, and lessees. 19.10.050 Except as provided in this title, the foregoing does not allow for amendment by the city of material terms of any authorization, franchise, or lease it issues without the consent of the grantee, franchi- see, or lessee. (Ord. 692 § 6, 2001) 19.10.050 Location of facilities. All facilities shall be constructed, installed, and located in accordance with the following terms and conditions, unless otherwise specified in an autho- rization, franchise, or lease agreement: A. Unless otherwise provided in an authoriza- tion, franchise, or lease, a grantee, franchisee, or lessee with permission to occupy a public way must locate its cable or telecommunications facili- ties underground. B. Whenever any new or existing electric utili- ties, cable facilities, or telecommunications facili- ties are located or relocated underground within a public way of the city, a grantee, franchisee, or les- see that currently occupies the same public way shall relocate its facilities underground at no ex- pense to the city. Absent extraordinary circum- stances or undue hardship as determined by the city manager, such relocation shall be made concur- rently to minimize the disruption of the rights -of - way. No extension granted by the city manager un- der this subsection shall exceed a period of 12 months. C. At the option of the city, whenever new ducts or conduit are constructed, relocated or placed, the grantee, franchisee or lessee may be required to provide the city with additional duct or conduit and related structures necessary to access the duct and conduit. The cost of such items shall be recovered as provided in state law. D. Any overhead facilities will be installed as part of the backbone system only. No service leads will be installed overhead. (Ord. 692 § 6, 2001) 19.10.060 Conduit occupancy. In furtherance of the public purpose of reduction of rights -of -way excavation, it is the goal of the city to encourage both the shared occupancy of underground conduit as well as the construction, whenever possible, of excess conduit capacity for occupancy of future right-of-way occupants. (Ord. 692 § 6, 2001) 19.10.070 Occupancy of city -owned conduit. In furtherance of the same objectives of MMC 19.10.060, if the city owns or leases conduit in the path of grantee's proposed telecommunications facilities, and provided it is technologically feasi- 19-20 ble for grantee to occupy the conduit owned or leased by the city, grantee shall be required to occupy the conduit owned or leased by the city in order to reduce the necessity to excavate the rights - of -way. Grantee shall pay to the city a fee for such occupancy which shall be the cost grantee would have expended to construct its own conduit from the outset, as certified by the grantee's engineer and approved by the city engineer. The city and grantee may agree to amortize the fee through annual payments to the city over the term of the license or franchise, including the time value of money. (Ord. 692 § 6, 2001) 19.10.080 Compliance with One Number Locator Service. All grantees, franchisees, and lessees shall, before commencing any construction in the rights - of -way, comply with the provisions of the One Number Locator Service. (Ord. 692 § 6, 2001) 19.10.090 Construction permits. All grantees, franchisees, and lessees are required to obtain construction permits for cable and telecommunications facilities as required by this code. However, nothing in this title shall pro- hibit the city and a grantee, franchisee, or lessee from agreeing to alternative plan review, permit, and construction procedures for an authorization, franchise, or lease granted under this title, provided such alternative procedures provide substantially equivalent safeguards for responsible construction practices. (Ord. 692 § 6, 2001) 19.10.100 Interference with rights -of -way. No grantee, franchisee, or lessee may locate or maintain its cable or telecommunications facilities so as to unreasonably interfere with the use of the rights -of -way by the city, by the general public or by other persons authorized to use or be present in or upon the rights -of -way. All such facilities shall be moved by the grantee, franchisee, or lessee, at the grantee, franchisee, or lessee's cost, tempo- rarily or permanently, as determined by the city engineer, subject to any restrictions imposed by state law. (Ord. 692 § 6, 2001) 19.10.110 Damage to property. No grantee, franchisee, or lessee, nor any person acting on a grantee, franchisee, or lessee's behalf shall take any action or permit any action to be done which may impair or damage any city prop- erty, rights -of -way of the city or other property, whether publicly or privately owned, located in, on Medina Municipal Code or adjacent thereto. This section shall not apply to necessary street cuts approved by the city. (Ord. 692 § 6, 2001) 19.10.120 Notice of work. Unless otherwise provided in an authorization, franchise, or lease agreement, no grantee, franchi- see, or lessee, nor any person acting on the grantee, franchisee, or lessee's behalf, shall commence any nonemergency work in or about the rights -of -way or upon city property without 10 working days' advance notice to the city. (Ord. 692 § 6, 2001) 19.10.130 Repair and emergency work. In the event of an unexpected repair or emer- gency, a grantee, franchisee, or lessee may com- mence such repair and emergency response work as required under the circumstances, provided the grantee, franchisee, or lessee shall notify the city as promptly as possible, before such repair or emer- gency work commences or as soon thereafter as possible if advance notice is not practicable. (Ord. 692 § 6, 2001) 19.10.140 Maintenance of facilities. Each grantee, franchisee, or lessee shall main- tain its facilities in good and safe condition and in a manner that complies with all applicable federal, state and local requirements. (Ord. 692 § 6, 2001) 19.10.150 Relocation or removal of facilities. Within 30 days following written notice from the city, a grantee, franchisee, or lessee shall pro- vide a schedule to the city indicating the estimated completion date for temporarily or permanently removing, relocating, changing, or altering the position of any cable or telecommunications facil- ities within the rights -of -way or upon city property whenever the city engineer shall have determined that such removal, relocation, change, or alteration is reasonably necessary for: A. The construction, repair, maintenance, or installation of any city or other public improve- ment in or upon the rights -of -way either by the city or a developer as required by development approval; and B. The operations of the city or other govern- mental entity in or upon the rights -of -way. C. This work shall generally be completed within 90 days following the original notice by the city unless a different duration is specifically authorized by the city. (Ord. 692 § 6, 2001) 19-21 19.10.170 19.10.160 Building moving. Whenever any person shall have obtained per- mission from the city to use any street or public way for the purpose of moving any building, a grantee, franchisee, or lessee, upon 15 days' writ- ten notice from the city, shall raise or remove, at the expense of the person desiring to move the building, any of the grantee, franchisee, or lessee's facilities which may obstruct the removal of such building; provided, that the person desiring to move the building shall comply with all require- ments of the city for the movement of buildings. (Ord. 692 § 6, 2001) 19.10.170 Removal of unauthorized facilities. Within 90 days following written notice from the city, any telecommunications carrier or provider or other person who owns, controls, or maintains any unauthorized cable or telecommunications system, facility, or related appurtenances within the rights - of -way of the city shall, at its own expense, remove such facilities or appurtenances from the rights -of - way of the city. A cable or telecommunications sys- tem or facility is unauthorized and subject to removal in the following circumstances: A. Upon expiration or termination of the grantee or franchisee's authorization or franchise; B. Upon abandonment of a facility within the rights -of -way of the city. Any property of a grantee or franchisee shall be deemed abandoned if left in place 90 days after expiration or termination of an authorization or franchise; C. If the system or facility was constructed or installed without the prior grant of an authorization or franchise; D. If the system or facility was constructed or installed without the prior issuance of a required construction permit; and E. If the system or facility was constructed or installed at a location not permitted by the authori- zation or franchise. Provided, however, that the city may, in its sole discretion, allow a grantee, franchisee, or other such persons who may own, control, or maintain cable or telecommunications facilities within the rights -of -way of the city to abandon such facilities in place. No facilities of any type may be aban- doned in place without the express written consent of the city. Any plan for abandonment or removal of a grantee or franchisee's facilities must be first approved by the city manager, and all necessary permits must be obtained prior to such work. Upon permanent abandonment of the property of such persons in place, the property shall become that of 19.10.180 the city, and such persons shall submit to the city an instrument in writing, to be approved by the city attorney, transferring to the city the ownership of such property. The provisions of this section shall survive the expiration, revocation, or termination of an authorization or franchise granted under this title. (Ord. 692 § 6, 2001) 19.10.180 Emergency removal or relocation of facilities. The city retains the right and privilege to cut or move any cable or telecommunications facilities located within the rights -of -way of the city and upon city property, as the city may determine to be necessary, appropriate or useful in response to any public health or safety emergency. The city shall not be liable to any cable operator, telecommunica- tions carrier or provider, or any other party for any direct, indirect, or any other such damages suffered by any person or entity of any type as a direct or indirect result of the city's actions under this sec- tion. (Ord. 692 § 6, 2001) 19.10.190 Damage to facilities. Unless directly and proximately caused by the willful, intentional, or malicious acts by the city, the city shall not be liable for any damage to or loss of any cable or telecommunications facility upon city property or within the rights -of -way of the city as a result of or in connection with any public works, public improvements, construction, exca- vation, grading, filling, or work of any kind on such city property or within the rights -of -way by or on behalf of the city. (Ord. 692 § 6, 2001) 19.10.200 Restoration of rights -of -way, other ways, and city property. A. When a grantee, franchisee, lessee, or any person acting on its behalf, does any work in or af- fecting any rights -of -way or city property, it shall, at its own expense, promptly remove any obstruc- tions therefrom and restore such ways or property to as good a condition as existed before the work was undertaken, unless otherwise directed by the city. B. If weather or other conditions do not permit the complete restoration required by this section, the grantee, franchisee, or lessee shall temporarily restore the affected ways or property. Such tempo- rary restoration shall be at the grantee, franchisee, or lessee's sole expense and the grantee, franchi- see, or lessee shall promptly undertake and com- plete the required permanent restoration when the 19-22 weather or other conditions no longer prevent such permanent restoration. C. A grantee, franchisee, lessee or other person acting in its behalf shall adhere to traffic control measures established by the Manual of Uniform Traffic Control Devices, latest edition, and use suit- able barricades, flags, flagmen, lights, flares, and other measures as required for the safety of all members of the general public and to prevent injury or damage to any person, vehicle, or property by reason of such work in or affecting such ways or property. D. The city engineer shall be responsible for inspection and final approval of the condition of the rights -of -way and city property following any construction and restoration activities therein. Fur- ther, the provisions of this section shall survive the expiration, revocation, or termination of an autho- rization, franchise, lease, or other agreement granted pursuant to this title. (Ord. 692 § 6, 2001) 19.10.210 Facilities maps. For all new or relocated facilities, each grantee, franchisee, and lessee shall provide the city with a map or maps accurately reflecting the horizontal and vertical location and configuration of all of their telecommunications facilities within the rights -of -way and upon city property. Each grantee, franchisee, and lessee shall provide the city with updated maps annually or upon request by the city. (Ord. 692 § 6, 2001) 19.10.220 Duty to provide information. Within 10 days of a written request from the city, each grantee, franchisee, or lessee shall fur- nish the city with information sufficient to demon- strate: A. That the grantee, franchisee, or lessee has complied with all requirements of this title; and B. That all sales, utility and/or telecommunica- tions taxes due the city in connection with the cable or telecommunications services and facilities pro- vided by the grantee, franchisee, or lessee have been properly collected and paid by the grantee, franchisee, or lessee. All books, records, maps and other documents, maintained by the grantee, franchisee, or lessee with respect to its facilities within the rights -of - way and upon city property shall be made available for inspection by the city at reasonable times and intervals; provided, however, that nothing in this section shall be construed to require a grantee, franchisee, or lessee to violate state or federal law regarding subscriber privacy, nor shall this section Medina Municipal Code be construed to require a grantee, franchisee, or lessee to disclose proprietary or confidential infor- mation without adequate safeguards for its confi- dential or proprietary nature. (Ord. 692 § 6, 2001) 19.10.230 Leased capacity. A grantee, franchisee, or lessee shall have the right, without prior city approval, to offer or pro- vide capacity or bandwidth to another telecommu- nications provider consistent with such permit, franchise, or lease; provided: A. The grantee, franchisee, or lessee shall fur- nish the city with a copy of any such lease or agree- ment between the grantee, franchisee, or lessee and the provider; and B. The telecommunications provider has com- plied, to the extent applicable, with the require- ments of this title. (Ord. 692 § 6, 2001) 19.10.240 Insurance. Unless otherwise provided in an authorization, franchise, or lease agreement, each grantee, fran- chisee, or lessee shall, as a condition of the permit or grant, secure and maintain the following liability insurance policies insuring both the grantee, fran- chisee, or lessee and the city, and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volun- teers as co -insureds against claims for injuries to persons or damages to property which may arise from or in connection with the exercise of the rights, privileges, and authority granted to the grantee, franchisee, or lessee: A. Comprehensive general liability insurance, written on an occurrence basis, with limits not less than: 1. Five million dollars for bodily injury or death to each person; 2. Five million dollars for property damage resulting from any one accident; and 3. Five million dollars for all other types of liability; B. Automobile liability for owned, non -owned and hired vehicles with a limit of $3,000,000 for each person and $3,000,000 for each accident; C. Worker's compensation within statutory limits and employer's liability insurance with lim- its of not less than $1,000,000; D. Comprehensive form premises -operations, explosions and collapse hazard, underground haz- ard and products completed hazard with limits of not less than $3,000,000; E. The liability insurance policies required by this section shall be maintained by the grantee, 19-23 19.10.240 franchisee, or lessee throughout the term of the au- thorization, franchise, or lease, and such other pe- riod of time during which the grantee, franchisee, or lessee is operating without an authorization, franchise, or lease hereunder, or is engaged in the removal of its telecommunications facilities. The grantee, franchisee, or lessee shall provide an insur- ance certificate, together with an endorsement naming the city, and its elected and appointed of- ficers, officials, agents, employees, representa- tives, engineers, consultants, and volunteers as ad- ditional insureds, to the city prior to the commencement of any work or installation of any facilities pursuant to said authorization, franchise, or lease. Any deductibles or self -insured retentions must be declared to and approved by the city. Pay- ment of deductibles and self -insured retentions shall be the sole responsibility of the grantee, fran- chisee, or lessee. The insurance certificate required by this section shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, ex- cept with respect to the limits of the insurer's lia- bility. The grantee, franchisee, or lessee's insur- ance shall be primary insurance as respects the city, its officers, officials, employees, agents, consult- ants, and volunteers. Any insurance maintained by the city, its officers, officials, employees, consult- ants, agents, and volunteers shall be in excess of the grantee, franchisee, or lessee's insurance and shall not contribute with it; F. In addition to the coverage requirements set forth in this section, each such insurance policy shall contain the following endorsement: It is hereby understood and agreed that this policy may not be canceled nor the in- tention not to renew be stated until 60 days after receipt by the City, by registered mail, of a written notice addressed to the City Manager of such intent to cancel or not to renew. G. Within 30 days after receipt by the city of said notice, and in no event later than 15 days prior to said cancellation or intent not to renew, the grantee, franchisee, or lessee shall obtain and fur- nish to the city replacement insurance policies meeting the requirements of this section; H. For those companies who are self -insured, they must provide documentation acceptable to the city demonstrating that the coverage provided meets or exceeds that described above. (Ord. 692 § 6, 2001) 19.10.250 19.10.250 General indemnification. lease. This covenant of indemnification No authorization, franchise, or lease shall be shall include, but not be limited by this ref - deemed to be granted under this title unless it erence, claims against the City arising as a includes an indemnity clause substantially con- result of the negligent acts or omissions of forming to the following: the grantee, franchisee, or lessee, its agents, servants, officers, or employees in The grantee, franchisee, or lessee hereby barricading, instituting trench safety sys- releases, covenants not to bring suit and tems or providing other adequate warnings agrees to indemnify, defend and hold of any excavation, construction, or work in harmless the City, its elected and appoint- any public right-of-way or other public ed officials, officers, employees, agents, place in performance of work or services representatives, engineers, and consult- permitted under this authorization, fran- ants from any and all claims, costs, judg- chise, or lease. ments, awards, or liability to any person, in- cluding claims by the grantee, franchisee, Inspection or acceptance by the City of or lessee's own employees to which the any work performed by the grantee, fran- grantee, franchisee, or lessee might other- chisee, or lessee at the time of completion wise be immune under Title 51 RCW, aris- of construction shall not be grounds for ing from injury or death of any person or avoidance of any of these covenants of in - damage to property of which the negligent demnification. Said indemnification obliga- acts or omissions of the grantee, franchi- tions shall extend to claims which are not see, or lessee, its agents, servants, offic- reduced to a suit and any claims which ers, or employees in performing under this may be compromised prior to the culmina- authorization, franchise, or lease are the tion of any litigation or the institution of any proximate cause. The grantee, franchisee, litigation. or lessee further releases, covenants not to bring suit and agrees to indemnify, defend In the event that the grantee, franchisee, and hold harmless the City, its elected and or lessee refuses the tender of defense in appointed officials, officers, employees, any suit or any claim, said tender having agents, representatives, engineers, and been made pursuant to the indemnification consultants from any and all claims, costs, clauses contained herein, and said refusal judgments, awards, or liability to any per- is subsequently determined by a court son including claims by the grantee, fran- having jurisdiction (or such other tribunal chisee, or lessee's own employees, includ- that the parties shall agree to decide the ing those claims to which the grantee, matter), to have been a wrongful refusal on franchisee, or lessee might otherwise have the part of the grantee, franchisee, or les- immunity under Title 51 RCW, arising see, then the grantee, franchisee, or les- against the City solely by virtue of the City's see shall pay all of the City's costs for de - ownership or control of the rights -of -way or fense of the action, including all other public properties, by virtue of the reasonable expert witness fees and rea- grantee, franchisee, or lessee's exercise of sonable attorneys' fees and the reason - the rights granted herein, or by virtue of the able costs of the City, including reasonable City's permitting the franchisee, or lessee's attorneys' fees of recovering under this in - use of the City's rights -of -way or other pub- demnification clause. lic property, based upon the City's inspec- tion or lack of inspection of work performed In the event of liability for damages arising by the grantee, franchisee, or lessee, its out of bodily injury to persons or damages agents and servants, officers or employees to property caused by or resulting from the in connection with work authorized on the concurrent negligence of the grantee, fran- City's property or property over which the chisee, or lessee, and the City, its officers, City has control, pursuant to this authoriza- employees and agents, the grantee, fran- tion, franchise, or lease, or pursuant to any chisee, or lessee's liability hereunder shall other permit or approval issued in connec- be only to the extent of the grantee, fran- tion with this authorization, franchise, or chisee, or lessee's negligence. It is further 19-24 Medina Municipal Code specifically and expressly understood that the indemnification provided herein consti- tutes the grantee, franchisee, or lessee's waiver of immunity under Title 51 RCW, solely for the purposes of this indemnifica- tion. This waiver has been mutually nego- tiated by the parties. The provisions of this Section shall survive the expiration or termination of this autho- rization, franchise, or lease agreement. Notwithstanding any other provisions of this Section, the grantee, franchisee, or lessee assumes the risk of damage to its facilities located in the City's rights -of -way, easements, and property from activities conducted by the City, its officers, agents, employees, and contractors. The grantee, franchisee, or lessee releases and waives any and all claims against the City, its of- ficers, agents, employees, or contractors for damage to or destruction of the grantee, franchisee, or lessee's facilities caused by or arising out of activities conducted by the City, its officers, agents, employees, and contractors, in the rights -of -way, ease- ments, or property subject to this authori- zation, franchise, or lease, except to the extent any such damage or destruction is caused by or arises from the sole negli- gence or any willful or malicious action on the part of the City, its officers, agents, em- ployees, or contractors. The grantee, fran- chisee, or lessee further agrees to indem- nify, hold harmless and defend the City against any claims for damages, including, but not limited to, business interruption damages and lost profits, brought by or un- der users of the grantee, franchisee, or les- see's facilities as the result of any interrup- tion of service due to damage or destruction of the user's facilities caused by or arising out of activities conducted by the City, its officers, agents, employees, or contractors, except to the extent any such damage or destruction is caused by or aris- es from the sole negligence or any willful or malicious actions on the part of the City, its officers, agents, employees, or contrac- tors. (Ord. 692 § 6, 2001) 19-25 19.10.270 19.10.260 Performance and construction surety. Before an authorization, franchise, or lease granted pursuant to this title is effective, and as necessary thereafter, the grantee, franchisee, or les- see shall provide and deposit such moneys, bonds, letters of credit, or other instruments in form and substance acceptable to the city as may be required by this title or by an applicable authorization, fran- chise, or lease agreement. (Ord. 692 § 6, 2001) 19.10.270 Security fund. Each grantee, franchisee, or lessee shall estab- lish a permanent security fund with the city by depositing the amount of $20,000, or such lesser amount as deemed necessary by the city engineer with the city manager in the form of an uncondi- tional letter of credit, or other instrument accept- able to the city, which fund shall be maintained at the sole expense of the grantee, franchisee, or les- see so long as any of the grantee, franchisee, or les- see's cable or telecommunications facilities are located within the rights -of -way of the city or upon city property. A. The fund shall serve as security for the full and complete performance of this chapter, includ- ing any costs, expenses, damages, or loss the city pays or incurs, including civil penalties, because of any failure attributable to the grantee, franchisee, or lessee to comply with the codes, ordinances, rules, regulations, or permits of the city. B. Before any sums are withdrawn from the security fund, the city shall give written notice to the grantee, franchisee, or lessee: 1. Describing the act, default or failure to be remedied, or the damages, costs or expenses which the city has incurred by reason of grantee, franchi- see, or lessee's act or default; 2. Providing a reasonable opportunity for grantee, franchisee, or lessee to first remedy the existing or ongoing default or failure, if applicable; 3. Providing a reasonable opportunity for grantee, franchisee, or lessee to pay any moneys due the city before the city withdraws the amount thereof from the security fund, if applicable; and 4. That the grantee, franchisee, or lessee will be given an opportunity to review the act, default or failure described in the notice with the city man- ager or designee. C. Grantees, franchisees and lessees shall replenish the security fund within 14 days after written notice from the city that there is a defi- ciency in the amount of the fund. (Ord 692 § 6, 2001) 19.10.280 19.10.280 Restoration bond. Unless otherwise provided in an authorization, franchise, or lease agreement, a performance bond written by a corporate surety acceptable to the city equal to at least 100 percent of the estimated cost of removing the grantee, franchisee, or lessee's telecommunications equipment and facilities and restoring the rights -of -way of the city and/or city - owned property to its preconstruction condition shall be deposited before any construction is com- menced. Said bond shall be required to remain in full force until 60 days after completion of the con- struction and/or improvements within the rights - of -way of the city or upon city -owned property, and shall warrant all such restoration work for a period of two years. The purpose of this bond is to guarantee removal of partially completed and/or nonconforming telecommunications facilities and to fully restore the rights -of -way of the city and city -owned property to its preconstruction condi- tion. (Ord. 692 § 6, 2001) 19.10.290 Coordination of construction activities. All grantees and franchisees are required to cooperate with the city and with each other. A. By February 1st of each year, grantees and franchisees shall provide the city with a schedule of their proposed construction activities in, around, or that may affect the rights -of -way. B. Each grantee and franchisee shall meet with the city, other grantees and franchisees and users of the rights -of -way annually or as determined by the city to schedule and coordinate construction in the rights -of -way. C. All construction locations, activities and schedules shall be coordinated, as ordered by the city engineer, to minimize public inconvenience, disruption or damages. (Ord. 692 § 6, 2001) 19.10.300 Assignments or transfers of grant. Ownership or control of a cable or telecommu- nications system, license, authorization, franchise, or lease may not, directly or indirectly, be trans- ferred, assigned or disposed of by sale, lease, merger, consolidation or other act of the grantee or franchisee, by operation of law or otherwise, with- out the prior written consent of the city, which con- sent shall not be unreasonably withheld or delayed, except as expressed by ordinance and then only on such reasonable conditions as may be prescribed therein. This obligation shall not apply to involun- tary mergers or acquisitions. 19-26 A. No authorization, franchise, lease, or other grant shall be assigned or transferred in any man- ner within 12 months after the initial grant of the authorization or franchise, unless otherwise pro- vided in the authorization or franchise agreement. B. Absent extraordinary and unforeseeable cir- cumstances, no grant, system or integral part of a system shall be assigned or transferred before con- struction of the telecommunications system has been completed. C. The grantee, franchisee, or lessee and the proposed assignee or transferee of the grant or sys- tem shall provide and certify the following infor- mation to the city not less than 150 days prior to the proposed date of transfer: 1. Complete information setting forth the nature, terms and conditions of the proposed trans- fer or assignment; 2. All information required of an authoriza- tion, franchise, or lease applicant pursuant to this title with respect to the proposed transferee or assignee; 3. Any other information reasonably required by the city; and 4. An application fee which shall be set by the city council by resolution. D. No transfer shall be approved unless the assignee or transferee has the legal, technical, financial, and other requisite qualifications to own, hold and operate the cable or telecommunications system pursuant to this title. E. Unless otherwise provided in an authoriza- tion, franchise, or lease agreement, the grantee, franchisee, or lessee shall reimburse the city for all direct and indirect costs, expenses and consultant fees reasonably incurred by the city in considering a request to transfer or assign an authorization, franchise, or lease. No approval shall be deemed approved until all such costs and expenses have been paid. F. Any transfer or assignment of an authoriza- tion, franchise, lease, system, or integral part of a system without prior written approval of the city under this section or pursuant to an authorization, franchise, or lease agreement shall be void and is cause for revocation of the grant. (Ord. 692 § 6, 2001) 19.10.310 Transactions affecting control of grant. Any transactions which singularly or collec- tively result in a change of 50 percent or more of the ownership or working control of the grantee, fran- chisee, lessee, of the ownership or working control Medina Municipal Code 19.10.350 of a cable or telecommunications system, of the ownership or working control of affiliated entities having ownership or working control of the grantee, franchisee, or lessee or of a telecommuni- cations system, or of control of the capacity or bandwidth of the grantee, franchisee, or lessee's ca- ble or telecommunication system, facilities or sub- stantial parts thereof, shall be considered an assignment or transfer requiring city approval pur- suant to MMC 19.10.300. Transactions between af- filiated entities are not exempt from city approval. A grantee, franchisee, or lessee shall promptly no- tify the city prior to any proposed change in, or transfer of, or acquisition by any other party of con- trol of a grantee, franchisee, or lessee's company. Every change, transfer, or acquisition of control of a grantee, franchisee, or lessee's company shall cause a review of the proposed transfer. In the event that the city adopts a resolution or other appropriate order denying its consent and such change, transfer or acquisition of control has been effected, the city may cancel the authorization, franchise, or lease. Approval shall not be required for mortgaging pur- poses or if said transfer is from a grantee, franchi- see, or lessee to another person or entity controlling, controlled by, or under common con- trol with a grantee, franchisee, or lessee. (Ord. 692 § 6, 2001) 19.10.320 Revocation or termination of grant. An authorization, franchise, or lease granted by the city to use or occupy rights -of -way of the city or city property may be revoked for the following reasons: A. Construction or operation in the city or in the rights -of -way of the city or upon city property without a grant of authority from an authorization, franchise, or lease; B. Construction or operation at an unauthorized location; C. Unauthorized substantial transfer of control of a grantee, franchisee or lessee; D. Unauthorized assignment of an authoriza- tion, franchise or lease; E. Unauthorized sale, assignment or transfer of a grantee, franchisee, or lessee's authorization, franchise, lease, assets, or a substantial interest therein; F. Misrepresentation by or on behalf of a grantee, franchisee, or lessee in any application or written or oral statement upon which the city relies in making the decision to grant, review or amend any authorization, franchise, or lease pursuant to this title; 19-27 G. Abandonment of cable or telecommunica- tions facilities in the rights -of -way or upon city property; H. Failure to relocate or remove facilities as required in this title; I. Failure to pay taxes, compensation, fees or costs when and as due the city; J. Insolvency or bankruptcy of the grantee, franchisee, or lessee; K. Violation of any material provision of this title; and L. Violation of the material terms of an authori- zation, franchise, or lease agreement. (Ord. 692 § 6, 2001) 19.10.330 Notice and duty to cure. In the event that the city believes that grounds exist for revocation of an authorization, franchise, or lease, the grantee, franchisee, or lessee shall be given written notice of the apparent violation or noncompliance, providing a short and concise statement of the nature and general facts of the vio- lation or noncompliance, and providing the grantee, franchisee, or lessee a reasonable period of time not exceeding 30 days to furnish evidence: A. That corrective action has been, or is being actively and expeditiously pursued, to remedy the violation or noncompliance; B. That rebuts the alleged violation or noncom- pliance; and C. That it would be in the public interest to impose some penalty or sanction less than revoca- tion. (Ord. 692 § 6, 2001) 19.10.340 Hearing. In the event that a grantee, franchisee, or lessee fails to provide evidence reasonably satisfactory to the city as provided in MMC 19.10.330, the city shall refer the apparent violation or noncompliance to the city council. The city council shall provide the grantee, franchisee, or lessee with notice and a reasonable opportunity to be heard concerning the matter. (Ord. 692 § 6, 2001) 19.10.350 Standards for revocation or lesser sanctions. If the city council determines that a grantee, fran- chisee, or lessee willfully violated or failed to com- ply with any of the provisions of this title or an authorization, franchise, or lease granted under this title, or through willful misconduct or gross negli- gence failed to heed or comply with any notice given the grantee, franchisee, or lessee by the city under the provisions of this title, then the grantee, 19.10.360 franchisee, or lessee shall, at the election of the city council, forfeit all rights conferred hereunder and the authorization, franchise, or lease may be re- voked or annulled by the city council. The city council may elect, in lieu of the above and without any prejudice to any of its other legal rights and remedies, to pursue other remedies, including ob- taining an order from the superior court having ju- risdiction compelling the grantee, franchisee, or lessee to comply with the provisions of this title and any authorization, franchise, or lease granted here- under, and to recover damages and costs incurred by the city by reason of the grantee, franchisee, or lessee's failure to comply. The city council shall utilize the following factors in analyzing the nature, circumstances, extent, and gravity of the violation and in making its determination under this section: A. Whether the misconduct was egregious; B. Whether substantial harm resulted; C. Whether the violation was intentional; D. Whether there is a history of prior violations of the same or other requirements; E. Whether there is a history of overall compli- ance; and F. Whether the violation was voluntarily dis- closed, admitted or cured. (Ord. 692 § 6, 2001) 19.10.360 Incorporation by reference. The provisions of this title shall be incorporated by reference in any authorization, franchise, or lease approved hereunder. Failure to so incorporate by reference shall not affect the binding effect of the provisions of this title. However, in the event of any conflict between the proposal, this title, and the authorization, franchise, or lease, the authoriza- tion, franchise, or lease shall be the prevailing doc- ument. (Ord. 692 § 6, 2001) 19.10.370 Notice of entry on private property. If directed by the city, at least 24 hours prior to entering private property or streets or public ease- ments adjacent to or on such private property toper - form new construction or reconstruction, a notice indicating the nature and location of the work to be performed shall be physically posted, at no expense to the city, upon the affected property by the grantee or franchisee. A door hanger may be used to comply with the notice and posting requirements of this section. A grantee or franchisee shall make a good faith effort to comply with the property owner/resident's preferences, if any, on location or placement of underground installations (excluding aerial cable lines utilizing existing poles and exist- ing cable paths), consistent with sound engineering 19-28 practices; provided, however, that nothing in this chapter shall permit a grantee or franchisee to un- lawfully enter or construct improvements upon the property or premises of another. Underground in- stallations on private property shall be located such as to not kill or damage significant trees as defined in this code. (Ord. 692 § 6, 2001) 19.10.380 Safety requirements. A grantee, franchisee, or lessee, in accordance with applicable federal, state, and local safety requirements shall, at all times, employ ordinary care and shall install and maintain and use com- monly accepted methods and devices for prevent- ing failures and accidents which are likely to cause damage, injury, or nuisance to the public and/or workers. All structures and all lines, equipment and connections in, over, under, and upon the streets, sidewalks, alleys, and rights -of -way or places of a permit, franchise, or lease area, wherever situated or located, shall at all times be kept and maintained in a safe, suitable condition, and in good order and repair. The city reserves the general right to see that the system of a grantee, franchisee, or lessee is constructed and maintained in a safe condition. If a violation of the National Electrical Safety Code or other applicable regulation is found to exist by the city, the city will, after discussions with a grantee, franchisee, or lessee, establish a reasonable time for a grantee, franchisee, or lessee to make neces- sary repairs. If the repairs are not made within the established time frame, the city may make the repairs itself or have them made and collect all rea- sonable costs thereof from a grantee, franchisee, or lessee. (Ord. 692 § 6, 2001) 19.10.390 Most favored community. In the event that a grantee, franchisee, or lessee enters into any agreement, franchise or other understanding with any other city, town or county in the state of Washington which provides terms or conditions more favorable to the city, town or county than those provided in its agreement with the city, such as, but not limited to, free or reduced fee hookups, access or service, the city shall be entitled to request at the city's option, and the grantee, franchisee, or lessee in question shall be required to execute, an amendment to its agree- ment which incorporates the more favorable terms and conditions. (Ord. 692 § 6, 2001) Medina Municipal Code 19.10.400 Relationship with WUTC proceedings. If grantee shall file, pursuant to Chapter 80.28 RCW, with the Washington Utilities and Transpor- tation Commission (or such other regulatory agency having jurisdiction) any tariff affecting the city's rights under its grant or franchise or relating to charges for facility relocations, the provider shall give the city manager written notice thereof within five days of the date of such filing. If, during the term of this grant or franchise, grantee shall file and the Washington Utilities and Transportation Commission (or such other regulatory agency hav- ing jurisdiction) shall permit to become effective, a schedule or tariff which conflicts with or is incon- sistent with any portion of this grant or franchise, the city may, within 30 days of the effective date of such schedule or tariff, notify grantee in writing that the franchise is terminated, effective on receipt of the notice. Thereafter, the city and grantee shall conduct negotiations concerning the terms and conditions of a new franchise, at reasonable times, in a reasonable manner, in good faith and with due regard to all pertinent facts and circumstances. (Ord. 692 § 6, 2001) 19-29 19.12.030 Chapter 19.12 CONSTRUCTION STANDARDS Sections: 19.12.010 General construction standards. 19.12.020 Construction codes. 19.12.030 Construction permits. 19.12.040 Applications. 19.12.050 Engineer's certification. 19.12.060 Traffic control plan. 19.12.070 Issuance of permit. 19.12.080 Compliance with permit. 19.12.090 Display of permit. 19.12.100 Survey of underground facilities. 19.12.110 Noncomplying work. 19.12.120 Completion of construction. 19.12.130 As -built drawings. 19.12.140 Restoration after construction. 19.12.150 Landscape restoration. 19.12.160 Construction surety. 19.12.170 Exceptions. 19.12.180 Responsibilities of the owner. 19.12.190 Use permit. 19.12.010 General construction standards. Notwithstanding any other provision of this code, no person shall commence or continue with the construction, installation, maintenance, or repair of cable or telecommunications facilities within rights -of -way of the city or upon city -owned property, except as provided in this chapter. At the discretion of the city, directional drilling or boring may be required as opposed to cuts or trenches. (Ord. 692 § 7, 2001) 19.12.020 Construction codes. Cable and telecommunications facilities shall be constructed, installed, operated, and maintained in accordance with all applicable federal, state and local codes, rules and regulations, including the city of Medina right-of-way construction require- ments, latest edition. (Ord. 692 § 7, 2001) 19.12.030 Construction permits. No person shall construct, install, repair, or maintain any cable or telecommunications facili- ties within the rights -of -way of the city or upon city property without first obtaining the appropriate construction permit therefor; provided, however: A. No permit shall be issued for the construc- tion or installation of cable or telecommunications facilities without payment of any applicable con- struction permit fee; and 19.12.040 B. No permit shall be issued for the construction or installation of telecommunications or other equipment on city property unless the telecommu- nications carrier or provider has applied for and re- ceived a facilities lease from the city. The city council reserves unto itself the sole discretion to lease city property for telecommunications and other facilities, and no vested or other rights shall be created by this section or any provision of this title applicable to such facilities leases. (Ord. 692 § 7, 2001) 19.12.040 Applications. Applications for permits to construct cable or telecommunications facilities shall be submitted to the city building permit coordinator and shall be accompanied by drawings, plans and specifications in sufficient detail to demonstrate: A. That the facilities will be constructed in accordance with the Washington State Department of Transportation Standard Specifications for Road, Bridge and Municipal Construction, latest edition, and all applicable codes, rules and regula- tions; B. The location and route of all facilities to be installed on existing utility poles; C. The location, route, and configuration of all facilities to be located under the surface of the ground, including the line and grade proposed for the burial at all points along the route which are within the rights -of -way; D. The location of all existing underground utilities, conduits, ducts, pipes, mains, and installa- tions which are within the rights -of -way along the underground route proposed by the applicant; E. The location of all other facilities to be con- structed within the city, but not within the rights - of -way; F. The construction methods to be employed for protection of existing structures, fixtures, streets and facilities within or adjacent to the rights -of - way; G. The location, dimension and types of all trees within or adjacent to the rights -of -way along the route proposed by the applicant, together with a landscape plan for protecting, trimming, remov- ing, replacing and restoring any trees or areas to be disturbed during construction; H. Proposed construction schedule and work hours; and I. The location of all survey monuments which may be displaced or disturbed by the proposed con- struction. (Ord. 692 § 7, 2001) 19-30 19.12.050 Engineer's certification. Where required by the city engineer, permit ap- plications shall be accompanied by drawings, plans and specifications bearing the certification of a reg- istered professional engineer. (Ord. 692 § 7, 2001) 19.12.060 Traffic control plan. All permit applications which involve work on, in, under, across, or along any rights -of -way shall be accompanied by a traffic control plan demon- strating the protective measures and devices that will be employed, consistent with the Manual of Uniform Traffic Control Devices, latest edition, to prevent injury or damage to persons or property and to minimize disruptions to efficient pedestrian and vehicular traffic. (Ord. 692 § 7, 2001) 19.12.070 Issuance of permit. After submission of all plans and documents required of the applicant and payment of the permit fees required by this title, the city engineer, if sat- isfied that the applications, plans and documents comply with all requirements of this title, shall issue a permit authorizing construction of the facil- ities, subject to such further conditions, restrictions or regulations affecting the time, place and manner of performing the work as he or she may deem nec- essary or appropriate. (Ord. 692 § 7, 2001) 19.12.080 Compliance with permit. All construction practices and activities shall be in accordance with the permit and approved final plans and specifications for the facilities. The city engineer and his or her representatives shall be pro- vided access to the work and such further informa- tion as he or she may require to ensure compliance with such requirements. (Ord. 692 § 7, 2001) 19.12.090 Display of permit. The permittee shall maintain a copy of the con- struction permit and approved plans at the con- struction site, which shall be displayed and made available for inspection by the city engineer or his or her representatives at all times when construc- tion work is occurring. (Ord. 692 § 7, 2001) 19.12.100 Survey of underground facilities. If the construction permit specifies the location of facilities by depth, line, grade, proximity to other facilities or other standard, the permittee shall cause the location of such facilities to be ver- ified by a state registered land surveyor. The per- mittee may be required to relocate any facilities Medina Municipal Code which are not located in compliance with permit requirements. (Ord. 692 § 7, 2001) 19.12.110 Noncomplying work. Upon order of the city engineer, all work which does not comply with the permit, the approved plans and specifications for the work, or the requirements of this chapter, shall be remedied or removed. (Ord. 692 § 7, 2001) 19.12.120 Completion of construction. The permittee shall promptly complete all con- struction activities so as to minimize disruption of the public and other ways and other public and pri- vate property. All construction work authorized by a permit within public and other ways, including restoration, must be completed within 120 days of the date of issuance. (Ord. 692 § 7, 2001) 19.12.130 As -built drawings. Within 60 days after completion of construction, the permittee shall furnish the city with two com- plete sets of plans, drawn to scale and certified to the city as accurately depicting the horizontal and vertical location and configuration of all cable or telecommunications facilities constructed pursuant to the permit. The city engineer shall have the dis- cretion to prescribe the format and/or media of said as -built drawings, consistent with city codes and policies. (Ord. 692 § 7, 2001) 19.12.140 Restoration after construction. Upon completion of any construction, mainte- nance, or repair work, the permittee shall promptly repair any and all public and private property im- provements, fixtures, structures, and facilities in the public or other ways or otherwise damaged dur- ing the course of construction, restoring the same as nearly as practicable to its condition before the start of construction. All survey monuments disturbed or displaced shall be referenced and replaced as re- quired by Chapter 332-120 WAC and city policy. The referencing and replacement of survey monu- ments shall be performed by a licensed land sur- veyor. The city engineer shall have final approval of the completeness of all restoration work and all permittees shall warrant said restoration work for a period of one year. (Ord. 692 § 7, 2001) 19.12.150 Landscape restoration. A. All trees, landscaping and grounds removed, damaged or disturbed as a result of the construc- tion, installation, maintenance, repair, or replace- ment of cable or telecommunications facilities, 19-31 19.12.190 whether such work is done pursuant to a franchise, permit, or lease shall be replaced or restored as nearly as may be practicable, to the condition exist- ing prior to performance of work. B. All landscape restoration work within the rights -of -way shall be done in accordance with landscape plans approved by the city landscape architect. (Ord. 692 § 7, 2001) 19.12.160 Construction surety. Prior to issuance of a construction permit, the permittee shall provide a performance bond, as provided in MMC 19.10.280. (Ord. 692 § 7, 2001) 19.12.170 Exceptions. Unless otherwise provided in an authorization, franchise, or lease agreement, all cable operators and telecommunications carriers are subject to the requirements of this title. (Ord. 692 § 7, 2001) 19.12.180 Responsibilities of the owner. The owner of the facilities to be constructed and, if different, the grantee, franchisee, or lessee, are responsible for performance of and compliance with all provisions of this title. (Ord. 692 § 7, 2001) 19.12.190 Use permit. A construction permit shall be considered the equivalent of a use permit for purposes of state law (ESSB 6676, Law of2000). (Ord. 692 § 7, 2001) EXHIBIT C Form of Transfer Agreement THIS TRANSFER AGREEMENT ("Agreement") is made this 20, by and between: 1. PARTIES. 1.1 1.2 1.3 RECITALS day of City of Medina, a legal subdivision of the state of Washington ("City"). WHEREAS the City has issued Franchisee, which was authorized on the pursuant to Ordinance No. ; and ("Franchisee"). ("Transferee") a single Franchise (the "Franchise") to day of , 20 , WHEREAS Franchisee has reached an agreement with Transferee on a (describe transaction, example: conveyance of benefited property) with Transferee, to (example: acquire from Franchisee its facilities and equipment located in the Right -of - Way) and WHEREAS Franchisee and Transferee have requested that the City approve a transfer of the Franchise from Franchisee to Transferee; and WHEREAS, as a result of the transfer of the Franchise, Transferee shall assume all rights, duties, and obligations that Franchisee has under the Franchise, shall be responsible for full compliance with the Franchise, and shall meet or exceed all applicable and lawful federal, state, and local requirements; and WHEREAS, relying on the representations made by the Transferee and Franchisee, the City, on the _ day of , 2C_, has, pursuant to Resolution No. and the Franchise, approved the transfer upon the terms and conditions as stated herein; NOW, THEREFORE, in consideration of the City's approval of the transfer, subject to the terms and conditions of this Agreement, THE PARTIES DO HEREBY AGREE as follows: 44. 2. TRANSFER. Transfer of the Franchise shall be effective upon the following conditions precedent: 2.1 Receipt by the City of the fully executed acceptance of franchise and performance guarantee attached hereto as Exhibit C-1, together with all required certificates of insurance, a security fund, and a performance bond; 2.2 Payment to the City of the Direct Costs of processing the Transfer; and 2.3 The date of closing of the sale/conveyance of the property benefited by this Franchise and/or the Telecommunications Facilities located in the Franchise Area, or the date mutually agreed to by the City, Franchisee and Transferee as follows: , whichever occurs first. 3. ACCEPTANCE OF FRANCHISE OBLIGATIONS. 3.1 Franchisee agrees that neither the Transfer nor the City's approval of this Agreement shall in any respect relieve Franchisee, or any of its successors in interest, of any obligation or liability arising from acts or omissions occurring prior to the Transfer of the Franchise, whether known or unknown, or the consequences thereof. 3.2 The Transfer is not intended and shall not be construed to authorize Franchisee to take any position or exercise any right that could not have been exercised prior to the Transfer. 3.3 Notwithstanding anything to the contrary herein, Transferee shall not be responsible for any of Franchisee's financial liabilities and obligations under the Franchise or pursuant to the City code, rules, and regulations that accrued before the Transfer of the Franchise. 3.4 The City waives none of its rights with respect to Franchisee's or Transferee's compliance with the terms, conditions, requirements, and obligations as set forth in the Franchise. The City's approval of this Agreement shall in no way be deemed a representation by the City that Franchisee is in compliance with all of Franchisee's obligations under the Franchise. 3.5 Franchisee and Transferee acknowledge and agree that the City's approval and acceptance of this Agreement and the resulting Transfer is made in reliance upon the representations, documents, and information provided by Franchisee and Transferee in connection with the request for transfer. 4. MISCELLANEOUS PROVISIONS. 4.1 Conditions Precedent. The Agreement shall be effective and binding upon the signatories once it has been signed by all signatories; provided that, within 30 days of execution of the Agreement by all of the signatories, Transferee shall provide the City 45. with the following: (1) all Direct Costs required for this Transfer; (2) its acceptance of the Franchise in substantially the form of the document attached as Exhibit C-1; (3) its insurance certificate in conformance with the requirements of the Franchise; and (4) a performance bond or cash deposit in conformance with the requirements of the Franchise. 4.2 Entire Agreement. The Agreement constitutes the entire agreement of the Parties with respect to the matters addressed herein. No statements, promises, or inducements inconsistent with the Agreement made by any Party shall be valid or binding unless in writing and executed by all Parties. 4.3 Binding Acceptance. The Agreement shall bind and benefit the Parties hereto and their respective heirs, beneficiaries, administrators, executors, receivers, trustees, successors, and assigns, and the promises and obligations herein shall survive the expiration date hereof. Any purported transfer of the Agreement is void without the express written consent of the signatories. 4.4 Severability. In the event that the Agreement shall, to any extent, be held to be invalid, preempted, or unenforceable, the remainder hereof shall be valid in all other respects and continue to be effective. 4.5 Defined Terms. Terms not defined in this Agreement shall have the same meaning as given in the Franchise. 4.6 Governing Law. The Agreement shall be governed in all respects by the laws of the state of Washington. IN WITNESS WHEREOF the Parties hereto have executed this Agreement as of the day and year first written above. CITY FRANCHISEE By: Donna Hansen, City Manager By: Title: TRANSFEREE By: _ Title: 46. TRANSFER EXHIBIT C-1 Acceptance of Franchise and Performance Guarantee Franchise issued pursuant to Ordinance No. and accepted 20 ; Transfer authorized pursuant to Resolution No. , effective 20 I, , am the and (am the authorized representative to) accept the above -referenced Franchise on behalf of . I certify that this Franchise and all terms and conditions thereof are accepted by , without qualification or reservation and that unconditionally guarantee(s) performance of all such terms and conditions. DATED this day of , 20_ Tax Payer ID# STATE OF ss. CITY OF By Its I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it (as the of , a corporation,) to be the free and voluntary act of such corporation/individual for the uses and purposes mentioned in the instrument. Dated this day of (Signature of Notary) 47. Print Name Notary public in and for the state of residing at My appointment expires EXHIBIT D Acceptance of Franchise Franchise issued pursuant to Ordinance No. 1, , am the and (am the authorized representative to) accept the above -referenced Franchise on behalf of . I certify that this Franchise and all terms and conditions thereof are accepted by , without qualification or reservation and that unconditionally guarantee(s) performance of all such terms and conditions. DATED this day of , 20 Tax Payer ID# STATE OF ss. CITY OF By Its I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it (as the of , a corporation,) to be the free and voluntary act of such corporation/individual for the uses and purposes mentioned in the instrument. Dated this day of (Signature of Notary) Print Name Notary public in and for the state of , residing at My appointment expires We EXHIBIT E Environmental Indemnity 1. Duty to Indemnify/Release/Defend. Franchisee assumes the risk that Hazardous Substances or other adverse matters may affect the Franchise Area that were not revealed by Franchisee inspection, and indemnifies, holds harmless, and hereby waives, releases and discharges forever the City and City's officers, employees and agents (collectively, "Indemnitees") from any and all present or future claims or demands, and any and all damages, losses, injuries, liabilities, causes of actions (including, without limitation, causes of action in tort) costs and expenses (including, without limitation, fines, penalties, judgments, and attorneys' fees) of any and every kind or character, known or unknown, which Franchisee might have asserted or alleged against Indemnitees arising from or in any way related to the Condition of the Franchise Area or alleged presence, use, storage, generation, manufacture, transport, release, leak, spill, disposal or other handling of any Hazardous Substances in, on or under the Franchise Area (the "Franchisee Losses"). Franchisee Losses shall include, without limitation, (a) the cost of any investigation, removal, or Remedial Action (defined below) that is required by any Environmental Law, that is required by judicial order or by order of or agreement with any governmental authority, or that is necessary or otherwise is reasonable under the circumstances, (b) losses for injury or death of any person caused by the Condition of the Franchise Area, and (c) losses arising under any Environmental Law enacted after the date hereof. Except as may be limited below, Franchisee Losses specifically include losses sustained by Franchisee as a result of any obligation of Franchisee to remove, close, Remediate, reimburse or take other actions required by any governmental agency concerning any Hazardous Substances on the Franchise Area. Notwithstanding the above, Franchisee Losses waived, released, and discharged hereunder by Franchisee shall not include losses as a result of releases or contamination caused by the acts of the City after the Effective Date. The rights, duties and obligations of the City and Franchisee pursuant Sections 2 and 3 herein apply to the duty to indemnify and defend as provided in this Section 1. 2. Discoverer Within Franchise Area. In the event that the Work of Franchisee in, on, and upon the Franchise Area results in the discovery of the presence of Hazardous Substances ("Discovered Matters") in, on or upon the areas excavated or otherwise opened or exposed by Franchisee within the Franchise Area (the "Excavated Areas"), Franchisee shall immediately notify the City and take whatever other reporting action is required by applicable Environmental Law as it relates to the Discovered Matters in the Excavated Areas. In the event that, as a result of such discovery, an agency with jurisdiction to address Hazardous Substances in, on or upon the Franchise Area ("Environmental Authority") orders, obtains a judgment or court order requiring, or otherwise exercises its authority to require Remedial Actions to be taken by the City or Franchisee, or Franchisee decides to undertake Remedial Actions independently or enter into a consent order or consent decree with an Environmental Authority, then in such event, Franchisee agrees to indemnify, defend, and hold the City harmless from and against the cost of all Remedial Actions which are required by the Environmental 50. Authority within the Excavated Areas under the applicable Environmental Laws with respect to the Discovered Matters; provided, however, the City, subject to the provisions of Section 3 below, shall be solely responsible for all necessary Remedial Actions which are required by the Environmental Authority within other portions of the Franchise Area (outside the Excavated Areas) under the applicable Environmental Laws with respect to the Discovered Matters. 3 Release by Franchisee. In the event Franchisee's Work, in, on or upon the Franchise Area within the Excavated Areas results in a release (as determined under applicable Environmental Laws) of Hazardous Substances which were, before such activities, confined to areas within the Excavated Areas, but which after such activities by Franchisee are released beyond the Excavated Areas, and if the release is caused in whole or in part by Franchisee, then Franchisee shall indemnify, defend and hold the City harmless from the costs of all necessary Remedial Actions which are required under the applicable Environmental Laws, to the extent of Franchisee's share of the liability for the release. Franchisee's liability for the release may, inter alia, be determined by Franchisee's admission of the same, or as determined by a final non -appealable decision by a court of competent jurisdiction, or as provided in a final non -appealable administrative order issued by the Environmental Authority, or by a consent decree entered by Franchisee and the Environmental Authority. 51. EXHIBIT F Insurance Requirements 1 General Requirement. Commencing upon issuance of the first Site Specific Permit under this Franchise, Franchisee must have adequate insurance at all times while Franchisee owns or operates Telecommunications Facilities in the Right -of -Way, to protect the City against claims for death or injuries to Persons or damages to property or equipment which in any way relate to, arise from or are connected with this Franchise or Site Specific Permit, or involve the Telecommunications Facilities, Franchisee, its agents, representatives, contractors, subcontractors and their employees. 2 Minimum Insurance Limits. Franchisee shall maintain the following minimum insurance coverages and limits: 2.1 Commercial General Liabilitv: insurance to cover liability, bodily injury, and property damage. The Commercial General Liability insurance shall be written on an occurrence basis, with an aggregate limit location endorsement for the Franchise Area, and shall provide coverage for any and all costs, including defense costs, and losses and damages resulting from personal injury, bodily injury and death, property damage, products liability and completed operations. Such insurance shall include broad form and blanket contractual coverage, including coverage for the Franchise as now or hereafter amended and specific coverage for the indemnity provisions set forth herein. Coverage must be written with the following limits of liability: $5,000,000 for bodily injury or death to each person; $5,000,000 for property damage resulting form any one accident; $5,000,000 for all other types of liability; and $3,000,000 for premises -operations, explosions and collapse hazard, underground hazard and products completed hazard; 2.2 Automobile Liabilitv: shall include owned, hired, and non -owned vehicles on an occurrence basis with coverage of at least $3,000,000 per occurrence; 2.3 Workers Compensation Insurance: shall be maintained during the life of this Franchise to comply with statutory limits for all employees, and in the case any work is sublet, Franchisee shall require its contractors and subcontractors similarly to provide workers' compensation insurance for all the employees. Franchisee shall also maintain, during the life of this policy, employer's liability insurance with limits of $1,000,000 each occurrence; 2.4 Excess or Umbrella Liabilitv: $5,000,000 each occurrence and $5,000,000 policy limit; and 2.5 Pollution Legal Liability Insurance: $5,000,000 per occurrence and $10,000,000 in the aggregate (at the option of the City). 52. Endorsements. 3.1 Franchisee's insurance coverage shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of Franchisee's insurance and shall not contribute to it. 3.2 Franchisee, through policy endorsement, shall waive its rights of subrogation against the City for all claims and suits. 3.3 Coverage shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability. 3.4 Franchisee's insurance shall name the City as an additional insured, and other Persons to whom the City is obligated under separate agreement or by Law, to protect or insure as an additional insured, from and against Liabilities arising out of Work performed in the Right -of -Way under a grant of authority of the City. 3.5 Franchisee's insurance shall include a requirement that the "railroad exclusion" be deleted or may include, in the alternative, ISO endorsement CG 24 17. 3.6 Franchisee shall request from its insurance provider that the insurance coverages and limits provided herein shall not be canceled or reduced, nor the intention not to renew be stated so as to be out of compliance with the requirements herein without sixty (60) days written notice, certified mail, return receipt requested, first being given to the City. If the insurance is canceled or reduced in coverage, Franchisee shall provide a replacement policy. ATC shall request from its insurance provider that each policy contain the following endorsement: It is hereby understood and agreed that this policy may not be canceled nor the intention not to renew be stated until 60 days after receipt by the City, by registered mail, of a written notice addressed to the City Manager of such intent to cancel or not to renew. 4. Acceptability of Insurers. Each insurance policy obtained pursuant to this Franchise shall be issued by financially sound insurers who may lawfully do business in the State of Washington with a financial strength rating at all times during coverage of no less than an "A" and in a financial size category of no less than "X", in the latest edition of `Best's Rating Guide" published by A.M. Best Company. In the event that at any time during coverage, the insurer does not meet the foregoing standards, Franchisee shall give prompt notice to the City and shall seek coverage from an insurer that meets the foregoing standards. The City reserves the right to change the rating or the rating guide depending upon the changed risks or availability of other suitable and reliable rating guides. 5. Verification of Coverage. Franchisee shall furnish the City with signed certificates of insurance and a copy of the amendatory endorsements, including, but not 53. necessarily limited to, the additional insured endorsement, evidencing the Automobile Liability, Commercial General Liability and Umbrella or Excess insurance of Franchisee upon acceptance of this Franchise. The certificate for each insurance policy is to be signed by a Person authorized by that insurer to bind coverage on its behalf. The certificate for each insurance policy must be on standard forms or on such forms as are consistent with standard industry practices. Franchisee hereby warrants that its insurance policies satisfy the requirements of this Franchise. 6. Deductible. Commercial General Liability Insurance policies and coverage required herein may include a reasonable deductible not to exceed 10% of the minimum per occurrence commercial general liablity policy limits; provided, however, that if Franchisee elects to include any deductible, Franchisee shall itself directly cover, in lieu of insurance, any and all City Liabilities that would otherwise in accordance with the provisions of this Franchise be covered by Franchisee insurance if Franchisee elected not to include a deductible. Such direct coverage by Franchisee shall be in an amount equal to the amount of Franchisee's actual deductible. 7. No Limitation. Franchisee's maintenance of insurance policies required by this Franchise shall not be construed to excuse unfaithful performance by Franchisee or limit the liability of Franchisee to the coverage provided in the insurance policies, or otherwise limit the City's recourse to any other remedy available at law or in equity. 8. Modifications of Coverages and Limits. The City reserves the right, during the term of the Franchise, to require any other insurance coverage or adjust the policy limits as it deems reasonably necessary utilizing sound risk management practices and principals based upon the loss exposures; provided that the City may not require other insurance limits or change the policy limits for Franchisee unless the City contemporaneously makes comparable changes to the insurance requirements for other franchisees with comparable franchises, services and installations in the Right -of -Way. Prior to imposing such additional coverage or adjusting existing required coverages or limits, the City shall provide reasonable notice to Franchisee and an opportunity to provide comments, and the City shall review and consider such comments that are timely made. 9. Public Franchisees. Franchisee Commercial General Liability, Automobile Liablity and Umbrella Coverage Insurance policies and coverage required herein for Public Franchisees may include a reasonable self -insured retention; provided, however, that as to any self -insured retention, Franchisee shall itself directly cover, in lieu of insurance, any and all City liabilities that would otherwise in accordance with the provisions of this Franchise be covered by Franchisee insurance if Franchisee elected not to include a self -insured retention. Such direct coverage by Franchisee shall be in an amount equal to the amount of Franchisee's actual self -insured retention. "Public Franchisee" for purposes of this Section 9 shall mean and include, any Franchisee organized as a political subdivision of the state of Washington, but shall not mean or include agents, contractors and subcontractors of Franchisee that are not also organized 54. as political subdivisions. Franchisee shall be required to provide verification of self- insurance retention coverage in a form and content acceptable to the City. 55. EXHIBIT G Financial Security Franchisee shall comply with the financial security requirements set forth in Exhibit B. 56. EXHIBIT H Form of Parental Guarantee This Guaranty is made on the date set forth below by [NAME OF GUARANTOR] (hereinafter referred to as the "Guarantor"). RECITALS: WHEREAS, * * (Guarantor) and the City of Medina (the "City"), have entered into a Franchise Agreement (the "Franchise") dated , 20_; and WHEREAS, the Franchise requires Guarantor to guaranty the observance, fulfillment and performance of Franchisee's obligations under the Franchise; NOW, THEREFORE, in partial consideration of the City's grant of the Franchise Agreement to Franchisee, and in addition to other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Guarantor hereby agrees to the following: TERMS: 1. Guarantor guarantees to the City the observance, fulfillment and performance by Franchisee of each and every obligation of Franchisee in the Franchise, except to the extent that any such provision or obligation is unenforceable under applicable law (the "Guaranty"). 2. The Guaranty shall continue in full force and effect until the City releases the Guarantor from its obligations under this Guarantee, Franchisee Transfers all of its Telecommunications Facilities to a third person pursuant to Section 2.7 of the Franchise; provided that such third person is not an Affiliate of Guarantor, Franchisee abandons its Telecommunications Facilities in place pursuant to Section 7.14 of the Franchise, Franchisee removes all of its Telecommunications Facilities from the Right -of -Way, or otherwise by operation of Law or contract. In no event shall the Guaranty extend beyond the Term of the Franchise Agreement. 3. This Guaranty shall be governed by and construed in accordance with the Laws of the State of Washington. 4. If any provision of this Guaranty is determined to be illegal, invalid or unconstitutional by any court of competent jurisdiction or by any state or federal regulatory authority having jurisdiction, then such determination shall have no effect on the validity of any other provision of this Guaranty unless to do so would be inequitable or would result in a material change in the rights and/or obligations of any Party hereunder, in which case the Parties shall reform this Guaranty using the process set forth in Section 3.5 of the Franchise. 57. IN WITNESS WHEREOF, the Guarantor has caused the Guaranty to be executed by its duly authorized representative on the date set forth below. BY: NAME: TITLE: DATE: STATE OF CITY OF ss. I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it (as the of a corporation,) to be the free and voluntary act of such corporation/individual for the uses and purposes mentioned in the instrument. Dated this day of (Signature of Notary) Print Name Notary public in and for the state of residing at My appointment expires 93 EXHIBIT I Contractor/Subcontractor Insurance Requirements 1 General Requirement. Prior to commencing and during the period of Work performed within the Franchise Area, Franchisee contractors and subcontractors (hereafter the "Contractors") must have in place adequate insurance to protect the City against claims for death or injuries to Persons or damages to property or equipment which in any way relate to, arise from or are connected with such Work. 2 Minimum Insurance Limits. The Contractors shall maintain the following minimum insurance coverages and limits: 2.1 Commercial General Liabilitv: insurance to cover liability, bodily injury, and property damage. The Commercial General Liability insurance shall be written on an occurrence basis, with an aggregate limit location endorsement for the Franchise Area, and shall provide coverage for any and all costs, including defense costs, and losses and damages resulting from personal injury, bodily injury and death, property damage, products liability and completed operations. Coverage must be written with the following limits of liability: $1,000,000 per occurrence; $2,000,000 general aggregate; and $1,000,000 products/completed operations aggregate. 2.2 Automobile Liabilitv: shall include owned, hired, and non -owned vehicles on an occurrence basis with coverage of at least $1,000,000 per occurrence. 2.3 Workers Compensation Insurance: shall be maintained during the period of such Work to comply with statutory limits for all employees. 3 Endorsements. 3.1 The Contractor's insurance coverage shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of the Contractor's insurance and shall not contribute to it. 3.2 Contractor, through policy endorsement, shall waive its rights of subrogation against the City for all claims and suits. 3.3 That the coverage shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability. 3.4 The Contractor's insurance shall name the City as an additional insured, and other Persons to whom the City is obligated under separate agreement or by 59. Law, to protect or insure as an additional insured, from and against Liabilities arising out of Work performed in the Right -of -Way under a grant of authority of the City. 3.5 The Contractor's insurance shall include a requirement that the "railroad exclusion" be deleted or may include, in the alternative, ISO endorsement CG 2417. 3.6 The insurance coverages and limits provided herein shall not be canceled or reduced, nor the intention not to renew be stated so as to be out of compliance with the requirements herein without thirty (30) days written notice, certified mail, return receipt requested, first being given to the City. If the insurance is canceled or reduced in coverage, Franchisee shall provide a replacement policy. 4 Acceptability of Insurers. Each insurance policy required herein shall be issued by financially sound insurers who may lawfully do business in the State of Washington with a financial strength rating at all times during coverage of no less than an "A-" and in a financial size category of no less than "IX", in the latest edition of `Best's Rating Guide" published by A.M. Best Company. In the event that at any time during coverage, the insurer does not meet the foregoing standards, Contractor shall give prompt notice to the City and shall seek coverage from an insurer that meets the foregoing standards. The City reserves the right to change the rating or the rating guide depending upon the changed risks or availability of other suitable and reliable rating guides. 5 Verification of Coverage. Franchisee shall furnish the City with Contractors' signed certificates of insurance and a copy of the amendatory endorsements, including, but not necessarily limited to, the additional insured endorsement, evidencing the Automobile Liability, and Commercial General Liability policies of the Contractors. The certificate for each insurance policy is to be signed by a Person authorized by that insurer to bind coverage on its behalf. The certificate for each insurance policy must be on standard forms or on such forms as are consistent with standard industry practices. 6 Deductible. Commercial General Liability Insurance policies and coverage required herein may include a reasonable deductible not to exceed _% of the minimum per occurrence commercial general liablity policy limits; provided, however, that if Contractor elects to include any deductible, Contractor shall itself directly cover, in lieu of insurance, any and all City Liabilities that would otherwise in accordance with the provisions of these requirements be covered by Contactors insurance if Contractor elected not to include a deductible. Such direct coverage by Contractor shall be in an amount equal to the amount of Contractor's actual deductible. 7 No Limitation. Contractor's maintenance of insurance policies required by herein shall not be construed to excuse unfaithful performance by Franchisee or limit the liability of Franchisee or Contractor to the coverage provided in the insurance policies, or otherwise limit the City's recourse to any other remedy available at law or in equity. 8 Modifications of Coverages and Limits. The City reserves the right, during the term of the Franchise, to require any other insurance coverage or adjust the 'A"$ policy limits as it deems reasonably necessary utilizing sound risk management practices and principals based upon the loss exposures; provided that the City may not require other insurance limits or change the policy limits for Franchisee's Contractors and/or Subcontractors unless the City contemporaneously makes comparable changes to the insurance requirements for other franchisee's with comparable franchises, services and installations in the Right -of -Way. Prior to imposing such additional coverage or adjusting existing required coverages or limits, the City shall provide reasonable notice to Franchisee and an opportunity to provide comments, and the City shall review and consider such comments that are timely made. rem