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HomeMy WebLinkAboutO-2675 - Grants wireless facilities franchise (Special)J>»...,• CITY OF MARYSVILLE Marysville,wash10n ORDINANCE NO.do"S • ce.~A1iv{t;bb~ rne.sc ~f~ rnio',+rh AN ORDINANCE OF THE CITY OF MARYSVILLE,WASHINGTON,SETTING FORTH THE AGREEMENT BETWEEN THE CITY OF MARYSVILLE AND CLEARWIRE US LLC, a Nevada limited liability company,GRANTING CLEARWIRE US LLC, ITS SUCCESSORS AND ASSIGNS A NONEXCLUSIVE FRANCHISE TO CONSTRUCT,OPERATE,MAINTAIN,REMOVE,REPLACE,AND REPAIR WIRELESS FACILITIES WITHIN CITY RIGHT OF WAY. WHEREAS, on /0 12-3 ,2006,the City of Marysville adopted Ordinance No. 2 (piP?,adopting Wireless Communication Facility Franchise Regulations and adopting a new Chapter 5.73 ofthe Marysville Municipal Code; and WHEREAS,the City has also adopted land use regulations regarding Wireless Communications Facilities,which regulations are set forth in Ch,19.43 MMC; and WHEREAS,pursuant to Ch. 5.73 MMC,CLEARWIRE US LLC (hereinafter "Company")has applied for a nonexclusive franchise to operate and maintain its wireless facilities ("Facilities")through certain public rights of way and property within the City of Marysville (hereinafter the "City");and, WHEREAS,Company and the City have engaged in negotiations regarding the right of Company to install, operate and maintain wireless telecommunications equipment and facilities in portions ofthe right of way ofthe City; and WHEREAS,Company and the City desire to enter into an agreement authorizing Company to use portions of the right of way in the City for its wireless telecommunications equipment and facilities subject to certain conditions and restrictions; WHEREAS, RCW 35A.47.040 and Ch. 35.99 RCW authorize the City to grant nonexclusive master permits or franchises for telecommunications facilities in City rights ofway, streets and other designated public properties,public ways, or other ways; NOW,THEREFORE,THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1.Grant ofFranchise 1.1 Subject to Chapters 5.73 and 19.43 of the Marysville Municipal Code ("MMC") COMPANY is hereby granted a franchise (also referred to as a "master permit" or "Wireless Right of Way Use Agreement"or "Agreement")to use portions of the improved and maintained City right of way (also referred to as the "Franchise Area") for the purpose ofconstructing,replacing,maintaining and using equipment and facilities for I Marysville Master Wireless ROW Agreement-Clearwire Final •,J • • a wireless telecommunications system,provided COMPANY shall first obtain all necessary permits and authorizations required by the City. Such permits and authorizations shall be issued subject to the provisions of Title 12 MMC and the provisions ofthis Agreement,which provisions may be incorporated by reference in such permits and authorizations as if fully set forth in whole therein. Such permits and authorizations shall also be subject to any other applicable statutes, ordinances,resolutions,codes, policies and standards. Nothing provided herein shall in any way limit the City's authority to otherwise exercise its police powers. 1.2.COMPANY and the City recognize that the rights authorized to be used by COMPANY pursuant to 1.1 above will permit COMPANY to construct some or all of a wireless telecommunications system in the City right ofway. COMPANY agrees to cooperate with the City's Public Works Department to identify and evaluate the portions of right of way necessary for COMPANY to serve its customers.Priority shall be given to use ofthose portions of right of way,construction upon which can be coordinated with other City and private construction activities,which will least impact the existing condition ofthe right ofway, will least impact traffic during construction,and will least impact adjacent neighborhoods during construction and after installation.The Chief Administrative Officer, or other person designated by the Chief Administrative Officer or hislher designee (e.g., the City Engineer), shall be authorized to approve the use by COMPANY of such right of way requested by COMPANY,and the final decision regarding the use of the right of way shall remain in the sole discretion of the Chief Administrative Officer or hislher designee in accordance with state and federal law. 1.3.COMPANY shall be subject to a one-time administrative fee of two thousand dollars ($2,000.00)for City's costs relating to the issuance and administration of this Agreement.COMPANY agrees to pay such administrative fee upon acceptance of this Agreement. Nothing provided herein shall exempt or otherwise limit COMPANY's obligation to pay any applicable tax required by the Marysville Municipal Code or any other applicable regulation. Pursuant to Section 35.21.860 ofthe Revised Code of Washington ("RCW"),the City is precluded from imposing a franchise fee on a telephone business as defmed in RCW 82.04.065,except for administrative expenses or any tax authorized by RCW 35.21.865.COMPANY hereby warrants that its operations as authorized under this Agreement are those of a telephone business as defined in RCW 82.04.065. As a result, the City currently lacks the authority to impose a franchise fee under the terms of this Agreement,other than as described herein. However,the City hereby reserves its right to impose a franchise fee on COMPANY,for purposes other than to recover its administrative expenses,if 2 Marysville Master Wireless ROW Agreement-Clearwire Final I • I '• • COMPANY's operations as authorized by this Agreement change so that not all uses of the right of way are those of a "telephone business" as defined in RCW 82.04.065, or if statutory prohibitions on the imposition of such fees are removed or amended. In either instance, the City also reserves its right to require that COMPANY obtain a separate franchise for its change in use, which franchise may include provisions intended to regulate COMPANY's operations, as allowed under applicable law. The City reserves its right to impose site specific charges for the use ofCity right of way for placement of wireless services equipment or facilities as provided in RCW 35.2I.860(1)(e)by execution of an agreement in substantially the form set forth in Exhibit A -Addendum to Wireless Right ofWay Use Agreement. No rights shall pass to COMPANY by implication. Without limiting the foregoing, this Franchise shall not include or be a substitute for any permits, authorization or agreements for occupying any other property of the City or private entities to which access is not specifically granted by this Franchise, for operations on or in rights of way or on public property, or for the privilege of carrying on business within the City. This Franchise is intended to convey limited rights and interests only as to those rights of way in which the City has an actual interest.It is not a warranty of title or interest in any right of way; it does not provide the Grantee with any interest in any particular location with the right of way; and it does not confer rights other than as expressly provided in the grant thereof. COMPANY reserves its right to contest or challenge the City's determination that it may impose a franchise fee or require that COMPANY obtain a separate franchise under the provisions ofthis Section, federal or state law. 1.4.This Agreement shall be in effect for a period offive (5) years from the effective date of this Agreement. This Agreement shall automatically renew for four (4) additional five (5) year periods thereafter, upon the same terms and conditions, unless either party informs the other in writing ofthat party's intention not to renew this Agreement at least ninety (90) days prior to the expiration ofthe then-currentterm. 1.5.This Agreement may additionally be terminated by the City ifCOMPANY fails to commence construction of its facilities/system within one (I)year ofthe effective date of this Agreement unless otherwise agreed to inwriting by the City. Section 2. Permitsand Authorizations COMPANY shall apply for and obtain all necessary permits and authorizations prior to the construction, installation and operation of its wireless telecommunications equipment and facilities inthe right of way. 3 Marysville Master Wireless ROW Agreement -Clearwire Final ,.,r •• Section 3.Installation of Equipment (A) All facilities shall be installed and maintained so as to least interfere with existing and planned utilities and with the free passage oftraffic, in accordance with the laws of the State of Washington and the ordinances and standards of the City regulating such construction. For purposes of this Section 3,"planned"shall mean utilities which the City intends to construct or allow to be constructed in the future, which intent is evidenced by the inclusion of said utility project in an existing or future Capital Investment Program Plan, Comprehensive Plan,comprehensive utility plan, or other written construction or planning schedule. No permit condition shall conflict with or be deemed to waive any requirement of the Marysville Municipal Code for the construction of said facilities. Within parameters reasonably related to the City's role in protecting the public health, safety and welfare, the City may require that System facilities be installedat a particular time, at a specific place or in a particular manner, as a condition of access to a particular right of way; may deny access if Grantee is not willing to comply with the City'S requirements; may, subject to giving Grantee prior written notice and an opportunity to take the requisite corrective action, remove, or require removal of, any facility that is not installed in compliance with the requirementsestablished by the City, or which is installed without prior Cityapproval, and charge Granteefor all ofthe costs associated with removal; and may requireGrantee to cooperatewith othersto minimize adverse impacts on the Rights ofwaythrough joint trenching and other arrangements. (B)Subject to the City'S supervision and control, Grantee may erect, install, construct, repair, replace, reconstruct, and retain its facilities in, on, over, under, upon, across, and along the rights ofway within the Franchise Area,as necessary and appurtenant to the operation ofthe facilities. SECTION 4.GENERAL RIGHT OF WAY USE AND CONSTRUCTION 4.1 Right to Construct Subjectto generally applicablelaws, regulations,rules,resolutions and ordinances of the City, including Ch.19.43 MMC, and the provisions of this Franchise, Grantee may perform all construction in the Rights of way for any facility needed for the maintenance, upgrade or extension ofGrantee's facilities. 4.2 Right of Way Meetings Subject to receiving advance notice, Grantee shall make reasonable efforts to attend and participate in meetings of the City regarding right of way issues that may impact the Facilities. 4.3 General Standard All work authorized and required hereunder shall be done in a safe, thorough and workmanlike manner. All installations of equipment shall be durable and installed in accordance with good engineering practices. 4.4 Movement of Facilities During Emergencies During emergencies, the Citymay move Grantee's facilitieswithout prior notice. 4 Marysville MasterWireless ROW Agreement -Clearwire Final ,.r ,•• 4.5 Permits Required for Construction Prior to doing any work in the right of way or other public property, Grantee shall apply for, and obtain, appropriate permits from the City. As part ofthe permitting process, the City may impose such conditions and regulations as are necessary for the purpose of protecting any structures in such rights ofway, and in providing for the proper restoration of such Rights of way and to protect the public and the continuity of pedestrian or vehicular traffic. Grantee shall pay all generally applicable fees forthe requisite City permits, 4.6 Emergency Permits In the event that emergency repairs are necessary, Grantee shall immediately notify the City ofthe need for such repairs. Grantee may initiatesuch emergency repairs, and shall apply for appropriate permits, within forty-eight (48) hours after discovery of the emergency. 4.7 Compliance with Applicable Codes (A) City Codes. Grantee shall comply with all applicable City codes, including, without limitation, Chapters 5.73 and 19.43 MMC, Title 12 MMC, and the City's construction codes, building codes, the Fire Code, and zoning codes and regulations. (B)Regulations and Safety Codes. Grantee shall comply with all applicable federal, State and City safety requirements, rules, regulations,laws and practices. By way of illustration and not limitation, Grantee shall comply with the National Electric Code, National Electrical Safety Code, and Occupational Safety and Health Administration (OSHA) Standards. 4.8 GIS Mapping Grantee shall comply with any generally applicable ordinances, rules and regulations of the City, regarding geographic information systems mapping for users of the rights of way. 4.9 Least Interference Work in the right of way, or on other public or private property, shall be done in a manner that causes the least interference with the rights and reasonable convenience of property owners and residents. Grantee's Facilities shall be constructed and maintained in such a manner as not to interfere with sewers, water pipes or any other property ofthe City, or with any other pipes, wires, conduits, pedestals, structures or other facilities that may have been laid in the rights of way by, or under, the City's authority. The Grantee's Facilities shall be located, erected and maintained so as not to endanger or interfere with the lives of persons, or to unreasonably interfere with new improvements the City may deem proper to make, or to unnecessarily hinder or obstruct the free use ofthe rights of way or other public property, and shall not interfere with travel and use ofpublic places by persons during the construction, repair, operation or removal thereof, and shall not obstruct or impede traffic.In the event of such unreasonable interference, the City may require the removal or relocation of Grantee's lines, cables, equipment and other appurtenances from the property in question at Grantee's expense. 5 Marysville Master Wireless ROW Agreement-Clearwire Final ,.r .•• 4.10 PreventInjury/Safety Grantee shall provide and use any equipment and facilities necessary to control and carry Grantee's signals so as to prevent injury to the City's property or property belonging to any Person.Grantee,at its own expense, shall repair, renew,change and improve its facilities to keep them in good repair, and safe and presentable condition. All excavations made by Grantee in the Rights ofway shall be properly safeguarded for the prevention of accidents. 4.11 Noticeto PrivatePropertyOwners Except in the case ofan emergency involving public safety, or an outage or service interruption to a large number ofSubscribers, Grantee shall give reasonable advance notice to private property owners or tenants of construction work or material modifications that require construction-type activities on or adjacent to such private property. 4.12 Restorationof Property (A) The Grantee shall protect public and private property from damage.If damage occurs, the Grantee shall promptly notify the property owner within twenty-four (24)hours. (B)Whenever Grantee disturbs or damages any right of way, other public property or any private property, Grantee shall promptly restore the right ofway or property to at least its prior condition, normal wear and tear excepted, at its own expense. (C)Grantee shall warrant any restoration work performed by or for Grantee in the right of way or on other public property or private property for one (I)year, unless a longer period is required by the City Code or any generally applicable ordinance or resolution ofthe City.If restoration is not satisfactorily performed by the Grantee within a reasonable time, the City may, after prior notice to the Grantee, or without notice where the disturbance or damage may create a risk to public health or safety, cause the repairs to be made and recover the reasonable cost ofthose repairs from the Grantee. Within thirty (30) days of receipt of an itemized list ofthose costs, including the costs of labor,materials and equipment,the Grantee shall pay the City. (D)Upon completion of the work that caused any disturbance or damage, Grantee shall promptly commence restoration of private property and shall use its best efforts to complete the restoration within twenty-four (24)hours,considering the nature of the work that must be performed. 4.13 Movement ofFacilities For CityPurposes The City shall have the right to require Grantee to relocate, remove, replace,modify or disconnect Grantee's facilities and equipment located in the rights ofway or on any other property ofthe City in the event ofan emergency or when necessary to protect or further the health, safety or welfare of the general public, and such work shall be performed at Grantee's expense. Except during an emergency, the City shall endeavor to provide reasonable notice to Grantee, not to be less than ten (10)business days, and allow Grantee 6 Marysville Master Wireless ROW Agreement -Clearwire Final .' "• ---~---• the opportunity to perform such action. In the event of any capital improvement project exceeding $150,000 in expenditures by the City, which requires the removal, replacement, modification or disconnection ofGrantee's facilitiesor equipment, the City shall endeavor to provide at least sixty (60) days written notice to Grantee. Following notice by the City, Grantee shall relocate, remove, replace, modify or disconnect any of its facilities or equipment within any right of way, or on any other property ofthe City. If the City requires Grantee to relocate its facilities located within the rights of way, the City shall make a reasonable effort to provide Grantee with an alternate location within the rights of way. If funds are generally made available to users ofthe rights ofway for such relocation, Grantee shall be entitled to its pro rata share ofsuch funds. If the Grantee failsto complete the above work within the time prescribed and to the City's reasonable satisfaction, the City may cause such work to be done and bill the reasonable cost of the work to the Grantee, including all reasonable costs and expenses incurred by the City due to Grantee's delay. In such event, the City shall not be liable for any damage to any portion of Grantee's Facilities. Within thirty (30) days of receipt ofan itemized list ofthose costs, the Grantee shallpay the City. 4.14 Movement of Facilities for Other Franchise Holders If any removal, replacement, modification or disconnection of the Facilities is required to accommodate the construction, operation or repair of the facilities or equipment ofanother City franchise holder, Grantee shall, after at least thirty (30) days advance written notice, take action to effect the necessary changes requested by the responsible entity. Grantee may require that the costs associated with the removal, replacement, modification or disconnection of the Facilities be paid by the benefited party, and Grantee may require a reasonable deposit ofthe estimated payment in advance. 4.15 Temporary Changes for Other Permitees At the request of any person holding a valid permit and upon reasonable advance notice, Grantee shall temporarily raise, lower or remove its facilities as necessary to permit the moving ofa building, vehicle, equipment or other item. The expense ofsuch temporary changes must bepaid by the permit holder, and Grantee may require a reasonable deposit of the estimated payment in advance. 4.16 Reservation ofCity Use of Right of way Nothing in this Franchise shall prevent the City from constructing sewers; grading, paving, repairing or altering any right of way; laying down, repairing or removing water mains; or constructing or establishing any other public work or improvement. All such work shall be done, insofar as practicable, so as not to obstruct, injure or prevent the use and operation ofGrantee's Facilities. 4.17 Tree Trimming Grantee may prune or cause to be pruned, using proper pruning practices, any tree in the rights of way which interferes with Grantee's Facilities. Grantee shall comply with any general ordinance or regulations of the City regarding tree trimming. Except in emergencies, Grantee may not prune trees at a point below thirty (30) feet above sidewalk 7 Marysville Master Wireless ROW Agreement -Clearwire Final ...---~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~--~~~~~--_._-----------., .''.r •• grade until one (I)week written notice has been given to the owner or occupant of the premises abutting the right of way in or over which the tree is growing. The owner or occupant ofthe abutting premises may prune such tree at his or her own expense during this one (I)week period. If the owner or occupant fails to do so, Grantee may prune such tree at its own expense. For purposes ofthis subsection, emergencies exist when it is necessary to prune to protect the public or Grantee's facilities from imminentdanger only. 4.18 Inspection of Construction and Facilities The City may inspect any of Grantee's facilities, equipment or construction within the rights of way and on other public property upon at least twenty-four (24) hours notice, or, in case of an emergency, upon demand without prior notice. If an unsafe condition is found to exist, the City, in addition to taking any other action permitted under applicable law, may order Grantee, in writing, to make the necessary repairs and alterations specified therein forthwith to correct the unsafe condition by a time the City establishes. The City has the right to inspect, repair and correct the unsafe condition ifGrantee fails to do so and to reasonablycharge Grantee therefor. 4.19 Stop Work (A) On notice from the City that any work is being performed contrary to the provisions ofthis Franchise, or in an unsafe or dangerous manner as reasonably determined by the City, or in violation of the terms of any applicable permit, laws, regulations, ordinances or standards, the work may immediately be stopped by the City. (B) The stop work order shall: (1) Be in writing; (2) Be given to the person doing the work or be posted on the work site; (3) Be sent to Grantee by overnight deliveryat the address given herein; (4) Indicate the nature ofthe alleged violation or unsafe condition; and (5) Establish conditions under which work maybe resumed. 4.20 Work of Contractors and Subcontractors Grantee's contractors and subcontractors shall be licensed and bonded in accordance with the City's generally applicable ordinances, regulations and requirements. Work by contractors and subcontractors is subject to the same restrictions, limitations and conditions as if the work were performed by Grantee. Grantee shall be responsible for all work performed by its contractors and subcontractors and others performing work on its behalfas ifthe work were performed by it, shall ensure that all such work is performed in compliance with this Franchise and applicable laws, and shall be jointly and severally liable for all damages and correcting all damage caused by them.It is Grantee's responsibility to ensure that contractors, subcontractors or other persons performing work on Grantee's behalf are 8 Marysville Master Wireless ROW Agreement -Clearwire Final .' "•• familiar with the requirements of this Franchise and applicable laws governing the work performedbythem. Section 5.Record of Installations 5.1 As a condition of this Agreement, COMPANY shall provide to the City upon request and at no cost, a copy of all as-built plans, maps and records, including revealing the final location and condition ofits facilities within the right of way. Such records shall be provided in a format acceptable to the City. With respect to excavations by COMPANY near any other facilities in the right of way, COMPANY and the City shall each comply with their respective obligations pursuant to Chapter 19.122 RCW and any other applicable state law. 5.2 Upon written request of the City, COMPANY shall provide the City with the most recent update available of any plan of potential improvements to its facilities that are subject to this Agreement; provided, however, any such plan submitted shall be for informational purposes only and shall not obligate COMPANY to undertake any specific improvements, nor shall such plan be construed as a proposal to undertake any specific improvements. The City agrees not to disclose such information unless required to do so pursuant to Chapter 42.56 RCW. Section 6.Hold Harmless and Indemnity 6.1 COMPANY shall indemnify, save harmless and defend the City, its elected and appointed officials, employees, and agents (including reimbursing the City for all costs, reasonable attorneys'fees, and expert witness fees) from any and all damages, claims, or demands,of any kind,on account of injury to or death of any and all persons, directly caused by COMPANY or arising directly out of COMPANY's use of the right ofway, or breach of any provision ofthis Agreement, including, but not limited to, COMPANY, its agents, employees, subcontractors and their successors and assigns. COMPANY shall further indemnify, save harmless and defend the City, as provided above, from all property damage of any kind, whether tangible or intangible, including loss of use resulting from such damage, that occurs in connection with any work performed by COMPANY or caused, in whole or in part, by the presence of COMPANY or its officials, employees, agents, contractors, subcontractors, or their property upon or in proximity to City right of way or City utilities. Such indemnification will not extend to that portion of any damages, claims, or demands that are caused by the negligence and intentional misconduct ofthe City, its employees, agents or contractors. 6.2 The City shall indemnify, save harmless and defend COMPANY from and against any and all injury, loss, damage or liability (or any claims in respect of the foregoing), and costs or expenses (including reasonable attorneys' fees and court costs) arising directly out of the actions of the City, or its employees or agents, or the City's breach of any provision of this Agreement, except to the extent attributable to the negligence or intentional misconduct ofCOMPANY, its employees, agents or independent contractors. 9 Marysville Masler Wireless ROW Agreement-Clearwire Final 1-_·.' "• • 6.3 This indemnification, hold harmless, and defense agreement includes the promise that COMPANY shall indemnify, save harmless and defend the City, its elected and appointed officials, employees and agents (including reimbursing the City for all costs, attorneys'fees, and expert witness fees) from any and all damages, claims, or demands of any kind on account of COMPANY's violation of city, county, state or federal laws, including those relating to environmental health, except to the extent caused by the negligence and intentional misconduct ofthe City, its employees, agents or contractors. 6.4 COMPANY agrees that its obligations under this Section extend to any claim, demand, and/or cause of action brought by, or on behalf of, any of its employees or agents. For this purpose, COMPANY, by mutual negotiation, hereby waives, as respects the City only, any immunity that would otherwise be available against such claims under the Industrial Insurance provisions of Title 51 RCW. In the event the City incurs any judgment,award, and/or cost arising therefrom, including attorneys'fees and expert witness fees to enforce the provisions of this Agreement, all such fees, expenses, and costs shall be recoverable from COMPANY. Section 7.Insurance and Bond 7.1 Insurance (A) General Requirement.Grantee must have adequate insurance during the entire term of this Franchise to protect the City against claims for death or injuries to Persons or damages to property or equipmentwhich in any way relate to, arise from or are connected with this Franchise, or involve Grantee, its agents,representatives,contractors, subcontractorsand their employees. (B)Minimum Insurance Limits.Grantee must keep insurance in effect III accordancewith the minimuminsurancelimitshereinset forth: (I)Commercial General Liability:Two million dollars ($2,000,000) aggregate limit per occurrence for bodily injury, personal injury and property damage; (2) Automobile Liability:Two million dollars ($2,000,000) combined singlelimitper accidentforbodily injuryand propertydamage; and (3)Employer's Liability:One milliondollars ($1,000,000). (4) Excess Liability or Umbrella Coverage:Five million dollars ($5,000,000). (C)Endorsements. (I)All policiesshallcontain,or shallbe endorsedso that: (a) TheCityshallbedesignatedas an additionalinsured; 10 Marysville Master Wireless ROW Agreement -Clearwire Final .: "•• (b) The Grantee's insurance coverage shall be primary insurance with respect to the City, its officers,officials,boards,commissions, employees and agents. Any insurance or self-insurance maintained by the City, its officers, officials, boards,commissions,employees and agents shall be in excess ofthe Grantee's insurance and shall not contribute to it; and (c) The policy shall contain a severability of interests provision. Grantee's insurance shall apply separately to each insured against whom a claim is made or lawsuit is brought,except with respect to the limits ofthe insurer's liability. (2) The insurance provided herein shall not be cancelled or the limits reduced so as to be out ofcompliance with the requirements ofthis Section without forty-five (45) days' written notice first being given to the City.If the insurance is cancelled Grantee shall provide a replacement policy.Grantee agrees to maintain continuous uninterrupted insurance coverage, in the amounts required,for the duration ofthis Franchise. (D)Acceptability ofInsurers. The insurance obtained by Grantee shall be placed with insurers with a Best's rating ofno less than "A VII". (E)Verification of Coverage. The Grantee shall furnish the City with a certificate or certificates of insurance. 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,and are to be provided to the City upon acceptance of this Franchise. The Grantee hereby warrants that its insurance policies satisfy the requirements ofthis Franchise. 7.2 Surety Bond (A)If there is an uncured breach by Grantee of a material provision of this Franchise or a pattern ofrepeated violations of any provision(s)ofthis Franchise,then the City may request and Grantee shall establish and provide to the City, as security for the faithful performance by Grantee of all of the provisions of this Franchise,a surety bond from a financial institution satisfactory to the City in the amount of ten thousand dollars ($10,000). (B)Ifa surety bond is required pursuant to subsection (A), the surety bond shall then be maintained at that same amount throughout the remainder of the term of this Franchise. (C)After the giving of notice to Grantee and expiration of any applicable cure period, the surety bond may be drawn upon by the City for purposes including,but not limited to, the following: I I Marysville Master Wireless ROW Agreement -Clearwire Final .'".•• (1) Franchise; Failure of Grantee to pay the City sums due under the terms ofthis (2)Reimbursement of costs borne by the City to correct Franchise violations not corrected by Grantee; (3)Monetary remedies or damages assessed against Grantee as provided in this Franchise. (D)The City shall give Grantee written notice of its intent to withdraw from the surety bond pursuant to this subsection. Within thirty (30)days following notice that such withdrawal has occurred, Grantee shall restore the surety bond to the full amount required by subsection (A). Grantee's maintenance of the surety bond shall not be construed to excuse unfaithful performance by Grantee or limit the liability of Grantee to the amount of the surety bond or otherwise limit the City's recourse to any other remedy available at law or in equity. (E)Grantee shall have the right to appeal to the City Council for reimbursement in the event Grantee believes that the surety bond was drawn upon improperly. Grantee shall also have the right ofjudicial appeal if Grantee believes the surety bond has not been properly drawn upon in accordance with this Franchise. Any funds the City erroneously or wrongfully withdraws from the surety bond shall be returned to Grantee. 7.3 Bonds (A) Grantee shall comply with the bonding requirements provided for in the Marysville Municipal Code. Grantee may be required to obtain other additional bonds in accordance with the City's ordinary practices. (8)Grantee's maintenance of the bond(s) shall not be construed to excuse unfaithful performance by Grantee or limit the liability of Grantee to the amount of the bond(s) or otherwise limit the City's recourse to any other remedy available at law or in equity. Section 8. Civil Penalties and Additional Relief 8.1 COMPANY,and the officers,directors,and employees of COMPANY or any agent,subcontractor or other person acting on behalf of COMPANY,failing to comply with any of the provisions of this Agreement,shall be subject to a civil penalty and abatement in the manner and to the extent provided for in the MMC,including Chapter 4.02. 8.2 In addition to any penalty which may be imposed by the City, any person violating or failing to comply with any ofthe provisions of this Agreement shall be liable for any and all damage to City property or right of way arising from such violation, including the cost ofrestoring the affected area to its condition prior to the violation. 12 Marysville Master Wireless ROW Agreement-Clearwire Final ".•• 8.3 Notwithstanding any other provision herein, the City may seek legal or equitable relief to enjoin any act or practice and abate any condition,which constitutes or will constitute a violation of the applicable provisions of this Agreement,when civil or criminal penalties are inadequate to effect compliance.In addition to the penalties otherwise set forth in this Section,COMPANY and the City acknowledge that any pattern of violations with respect to any material provision of this Agreement,consisting of three (3) or more such violations within a period of twelve (12)consecutive months, may further result in the revocation of any right of way use agreement,right of way use permit,facilities lease, or other such authorization. 8.4 Nothing in this Section shall be construed as limiting any remedies the City may have, at law or in equity,for enforcement ofthis Agreement. Section 9.Non-Exclusive The rights and privileges herein granted shall not be deemed exclusive and the right is hereby reserved to the City to grant to any other person,company,corporation or association,including the City, the right to exercise the rights and privileges herein granted;provided that such grant to any other person,company,corporation or association,including the City, does not unreasonably disturb or unreasonably affect the rights and privileges herein granted to COMPANY. Section 10.Police Powers Nothing contained herein shall be deemed to affect the City's authority to exercise its police powers to the fullest extent afforded by the Washington state constitution and Washington law.COMPANY shall not by this Agreement obtain any vested right to use any portion of the City right of way except for the locations approved by the City and then only subject to the terms and conditions ofthis Agreement.This Agreement and the permits and authorizations issued thereunder shall be governed by applicable City ordinances in effect at the time ofapplication for such permits and authorizations. Section 11.Construction Permit Required Prior to the performance of any work in any public right of way, and in addition to any other permits required by law,COMPANY shall apply for and obtain from the City a Right of Way Construction Permit, which application and permit shall comply with all applicable City ordinances,regulations and standards,including Title 12 MMC. Ifthe City reasonably determines that there is a potential for injury,damage or expense to the City as a result of COMPANY's use of the right of way, the City may require COMPANY to provide an assurance devise,in a form acceptable to the City, for activities described in the subject permit. Section 12.Modifications ofTerms and Conditions The City and COMPANY hereby reserve the right to alter,amend or modify the terms and conditions of this Agreement and any permit issued thereunder upon written agreement by both parties to such alteration,amendment or modification. Section 13.Interference 13 Marysville Master Wireless ROW Agreement-Clearwire Final ".•• The City shall not use, nor shall the City permit others to use, any portion of the right of way in any way which materially interferes with the operation of COMPANY's facilities in the locations authorized under this Agreement. COMPANY shall provide notice to the City of such interference and the City and COMPANY shall then work cooperatively to eliminate or substantiallymitigate such interference. Section 14.Abandonment or Non-Use of Facilities In the event COMPANY discontinues commercial use of any facility located in the City right ofway for a period of one hundredeighty (180) consecutive days or longer, the City may, upon ninety (90) days written notice from the City, require removal of all such facilities from the City right of way at COMPANY's sole expense.If COMPANY fails to remove such facilities upon proper notice from the City, the City may remove such facilities and COMPANY shall be responsible for reimbursing the City for the City's cost of removal. Notwithstanding any other provision of this Agreement, the City may permit COMPANY to abandon such facilities in place. However, no facilities of any type may be abandoned in place without the express written consent ofthe City, said consent not to be unreasonably withheld. Upon permanent abandonment, the facilities shall become the property of the City, and COMPANY shall submit to the City an instrument in writing, to be approved by the City Attorney, transferring ownership of such facilities to the City. The provisions of this Section shall survive the expiration, revocation or termination ofthis Agreement. Section 15.Severability Ifany term, provision, condition, or portion of this Agreement shall be held to be invalid or unconstitutional for any reason, the portion declared invalid shall be severable and the remaining portions of this Agreement shall be enforceable unless to do so would be inequitable or would result in a material change in the rights and obligations of the parties hereunder. Section 16.Transferability The rights and privileges granted to COMPANY as provided in this Agreement may only be assigned or transferred to another entity with the prior written approval of the City, which shall not be unreasonably withheld, conditioned or delayed. However, COMPANY may assign or transfer the rights and privileges granted herein to any affiliate, parent or subsidiary of COMPANY, or to an entity with or into which COMPANY may merge or consolidate, or to an entity which controls, is controlled by, or is under common control with such entity, or to any purchaser ofall or substantially all of the assets of COMPANY, without the requirement for City approval, so long as the successor provides written notice to the City that it agrees to be fully liable to the City for compliance with all terms and conditions ofthis Agreement. Section 17.Reimbursement of City COMPANY shall reimburse the City, upon submittal by the City of an itemized billing by project costs, for COMPANY's proportionate share of all actual, identifiable and reasonable expenses incurred by the City in planning, designing, constructing, installing, repairing or altering any City facility as the result of the actual or proposed 14 Marysville Master Wireless ROW Agreement -Clearwire Final :,'•• presence in the right of way of COMPANY's facilities. Such costs and expenses shall include but not be limited to the proportionate cost of City personnel utilized to oversee or engage in any work in the right of way as the result of the presence of COMPANY's facility in the right of way. Such costs and expenses shall also include the proportionate share of any time spent reviewing construction plans in order to either accomplish the relocation offacilities or the routing or rerouting ofany utilities so as not to interfere with facilities. The time of City employees shall be charged at their respective rate of salary, including overtime ifutilized,plus benefits and overhead. Any other costs will be billed proportionately on an actual cost basis. All billing will be itemized so as to specifically identify the costs and expenses for each project for which the City claims reimbursement. The billing may be on an annual basis, but the City shall provide COMPANY with the City's itemization ofcosts at the conclusion ofeach project for informational purposes. Section 18.Effective Date (A) 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 ofthis Franchise. (B) The effective date ofthis Franchise shall be five days after publication ofthis ordinance by summary. Section 19.Miscellaneous 19.1 This Agreement constitutes the entire agreement and understanding between the parties and supersedes all offers,negotiations and other agreements concerning the subject matter contained herein. Any amendments to this Agreement must be in writing and executed by both parties. 19.2 This Agreement shall be binding on and inure to the benefit of the successors and permitted assignees of the respective parties. 19.3 Any notice or demand required to be given herein shall be made by United States mail or reliable overnight courier to the address ofthe respective parties set forth below: The City City ofMarysville 1049 State Avenue Marysville,WA 98270 Attn:ChiefAdministrative Officer COMPANY Clearwire US LLC Attn: Site Property Manager 5808 Lake Washington Blvd NE, Suite 300 Kirkland,WA 98033 15 Marysville MasterWireless ROWAgreement -Clearwire Final ------_..------------------------ .i'•• With a Copy To: Clearwire US LLC Attn: Legal Department 5808 Lake Washington Blvd NE, Suite 300 Kirkland, WA 98033 • The City or COMPANY may from time to time designate any other address for this purpose by written notice to the other party. All notices hereunder shall be deemed received upon actual receipt. 19.4 This Agreement shall be governed by the laws ofthe State ofWashington. 19.5 In any case where the approval or consent ofone party hereto is required, requested or otherwise to be given under this Agreement, such party shall not unreasonably delay or withhold its approval or consent. 19.6 All Amendments and Exhibits annexed hereto form material parts of this Agreement. 19.7 This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original. 19.8 Subject to applicable law, all rights and remedies given to the City by this Franchise or retained by the City herein shall be in addition to and cumulative with any and all rights and remedies, existing or implied, now or hereafter available to the City, at law or in equity. 19.9 Venue for any dispute related to this Franchise shall be in Snohomish County Superior Court in Everett, Washington. 19.10 Nothing herein shall be deemed to create ajoint venture or principal-agent relationship between the parties, and neither party is authorized to, nor shall either party act toward third persons or the public in any manner that would indicate any such relationship with the other. The failure of the City at any time to require performance by Grantee of any provision hereof shall in no way affect the right ofthe City hereafterto enforce the same, nor shallthe waiver by the City of any breach ofany provision hereof be taken or held to be a waiver of any succeeding breach of such provision, or as a waiver ofthe provision itself or any other provision. 16 Marysville Master Wireless ROW Agreement -Clearwire Final :• • IN WITNESS WHEREOF, this Franchise is signed in the name of the City of Marysville, Washington,thisl~~ay ofNl~2006. Dennis Kendall,Mayor ATTEST: By ~.<~ City C ~uu:e. Approved as to form: By /l~1<.~ GRANT K. WEED, City Attorney By Clearwire US LLC, a Nevada limited'~;!iE;;Jl David P.Schnebele Its DIrector NetworkDeployment Date ofPublication:-.JL2-_4-'-/:...O_·7'--_ Effective Date (S days after publication):_....:...j.-=::..!...L:~'---_ 17 Marysville MasterWireless ROWAgreement -Clearwire Final ,.• EXHIBIT A • Addendum to Wireless Right of Way Use Agreement Site Specific Right of Way Fee Agreement for Wireless Facilities (Pursuantto RCW 35.21.860) I.Previous Agreements.All terms identified in the Franchise Agreement (Record No..->,between the City of Marysville ("City") and Clearwire US LLC, a Nevada limited liability company ("Company"), remain applicable, are incorporated by reference, and are supplemented by the followingterms and conditions. 2. Site.Company's facilities for site reference WA-SN0217-F / Newsom will be located: In the right of way on the west side of 67 th Ave NE to the east of 6623 66 th Dr NE. 3.Description of Facilities.Company's facilities located in the right of way are described as: Three panel antennas (35.8" tall, 5.5" wide, 4.7" deep) and three accompanying BTS units (1' 7" tall, 11" wide, 5" deep) to be mounted on the top of a 65-foot, Snohomish County POD utilitypole. 4.Term.This Addendum shall run concurrently with the Right of Way Use Agreement. 5.Payment.Company shall pay the City a monthly fee in the amount of two hundred dollars ($200.00) ("Monthly Fee") for the duration of the term of this Addendum. Payment of the Monthly Fee shall be made no later than the 5 th day of each calendar month to the following address: City ofMarysville 1049State Ave. Marysville, WA 98270 Attn: Chief AdministrativeOfficer \Addendumto Wireless Iht ofWay Use Agreement -Site spe!Fee (April 2006) Page 2 of4 To reduce the amount of paperwork involved for each party, an annual payment of two thousand four hundred dollars ($2,400.00) may be submitted to the above stated City address no later than January 15 of each year. Arrangements may also be made for payment for longer periods. At the beginning of each subsequent year, the Monthly Fee shall automatically be increased by 3%. 6.Executed in Counterparts.This Addendum may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute but one instrument. 7.Governed by the Laws of the State of Washington,Invalidity of Provisions.This Addendum shall be governed by the laws of the State of Washington. If any term or provision of this Addendum, or application thereof, shall to any extent be invalid or unenforceable, the remainder ofthis Addendum shall not be affected thereby, but shall be valid and enforceable to the fullest extent permitted by law. 8.Binding on Successors.This Addendum shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties, subject to the conditions set forth. 9.Failure to Insist upon Strict Performance.The failure of either party to insist upon strict performance of any of the terms or conditions of this Addendum shall not constitute a waiver thereof. 10.Termination.Except as otherwise provided herein, this Addendum may be terminated, without penalty or further liability, as follows: a) Upon thirty (30) days' written notice by the City if Company fails to cure a default for payment of amounts due under this Addendum within that thirty (30) day period; b) Upon thirty (30) days' written notice by either party ifthe other party commits a non-monetary default and fails to cure or commence curing such default within that thirty (30) day period, or such longer period as may be required to diligently complete a cure commenced within that thirty (30) day period; c) Upon ninety (90) days' written notice by the Company if the location, or the facilities are or become unacceptable under the Company's design or engineering specifications for its antenna facilities or the communications system to which the antenna facilities belong. Such facilities must be removed within 90 days. J •,,, ----------------• • Addendum to Wireless Right of Way Use Agreement -Site Specific Fee (April 2006) Page 3 of4 d)Upon ninety (90)days'written notice by City if the City determines to remove the facilities that are the subject matter of this lease for the purpose of placing utilities underground. 11.After the passage and approval ofthis addendum and within thirty (30) days after such approval,this addendum shall be accepted by Grantee by filing with the City Clerk an unconditional,acknowledged written acceptance of all terms and conditions ofthis Franchise.Failure ofGrantee to file such an acceptance within thirty days ofapproval shall be deemed a rejection by Grantee,and the rights and privileges herein granted shall cease after expiration ofthe thirty day period after approval,unless the thirty day period is extended by ordinance duly passed for thatpurpose. Dennis Kendall,Mayor ATTEST: BY.~)i~ City CleFl(L/((,'e !...e/H,Derwft r!/erlc Approved as to form: By }JHJ:k..W~ GlUNT K.WEED,City Attorney Clearwire US LLC, a Nevada limited ~bilitYcompanY\I)(.I,.~~.\, .~. B David P.Schnebele Dire~tgr Ne~rk Defl1eymll\I "• Addendumto Wireless;ght ofWay Use Agreement- Site spe!Fee (April 2006) Page4 of4 ,(. =- Date of Publication:----'---'---'--"----=--- I he,101I Effective Date (5 days after publication):_--Lj-iC.-4-~l.-_