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Avista Natural Gas Ord 13-013 Franchise CO13-255 CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO.13-013 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY,SPOKANE COUNTY, • WASHINGTON,GRANTING TO AVISTA CORPORATION A NON-EXCLUSIVE FRANCHISE TO CONSTRUCT AND MAINTAIN NATURAL GAS FACILITIES WITHIN THE PUBLIC RIGHTS-OF-WAY OF THE CITY OF SPOKANE VALLEY,AND OTHER MATTERS RELATING THERETO. WHEREAS, RCW 35A.47.040 authorizes the City to grant, permit, and regulate "nonexclusive franchises for the use of public streets;bridges or othcr,public ways, structures or places above or below the surface of the ground for railroads and other•routes and facilities for public conveyances, for poles, conduits,tunnels,towers and structures, pipes and wires and appurtenances thereof for transmission and distribution of electrical energy, signals and other methods of communication,for gas, steam and liquid fuels, for water, sewer and other private and publicly owned and operated facilities for public service"; and WHEREAS, RCW 35A.47,040 further requires that "no ordinance or resolution granting any franchise in a code city for any purpose shall be adopted or passed by the city's legislative body on the day of its introduction nor for five days thereafter, nor at any other than a regular meeting nor without first being submitted to the city attorney, nor without having been granted by the approving vote of at least a majority of the entire legislative body,not without being published at least once in a newspaper of general circulation in the city before becoming effective";and WHEREAS,this Ordinance has been submitted to the City Attorney prior to its passage;and WHEREAS,the Council finds that the grant of the Franchise contained in this Ordinance,subject to its terms. and conditions, is in the best interests of the public, and protects the health, safety, and welfare of the citizens of this City. NOW, THEREFORE, the City Council of the City of Spokane Valley, Spokane County, Washington;ordains as follows; Section L Definitions. For the purpose of this Ordinance, the following words and terms shall have the meaning set forth below;_ "Avista"means Avista Corporation, dha.Avista Utilities, a.Washington corporation, and its respective successors.and assigns,agents and coiittactors. "City Manager"means the City Manager or designee. "Commission" means the Washington Utilities and Transportation Commission or such . successor regulatory agency having jurisdiction over investor-owned public utilities in the State of Washington. "construction" or "coitstruct" shall mean constructing, digging, excavating, laying, testing, operating, extending, upgrading, renewing, removing, replacing, and repairing a facility. Ordinance 13-013,Avista Natural Gas Franchise Page 1 of 13 "day"shall mean a 24-hour period beginning at:12:01 AM. If a thing or act is to be done in less than seven days, intermediate Saturdays, Sundays and legal holidays shall be excluded in the computation of time. "facilities"means,collectively,any and all gas transmission,and.distribution systems and appurtenances owned by Avista,now and in the future in the franchise area,including but not limited to, gas plants, .gas pipes,. pipelines, mains, laterals, conduits, regulators, valves, meters, meter-reading devices, communication and control systems and other equipment, appliances, fixtures, attachments, appurtenances and other items necessary, convenient,or in any way appertaining to any and all of the foregoing for the purposes of transmission,distribution,and sale of gas. "franchise area" shall mean the entire -geographic area within the City as it is now constituted or may in the future be constituted. "gas"means natural,manufactured and/or mixed gases. "hazardous substances"shall have the same meaning as RCW 70.1.05D.02000). "maintenance, maintaining or maintain"shall Mean the work involved in the replacement and/or repair' of facilities, including constructing, relaying, repairing, replacing, • examining, testing, inspecting, removing, digging and excavating, and restoring operations incidental thereto. "public property"shall mean any real estate or any facility owned by the City. "Public Works Director"shall mean the Spokane Valley Public Works Director or his/her designee. "right-of-way"'shall refer to the surface of and the space along, above, and.below any street, road, highway, freeway, lane, sidewalk, alley, court, boulevard, parkway, drive, Grantee easement,and/or public way now or hereafter held or administered by the City. "streets" or "highways" shall mean the surface of, and the space above and below, any public street,road,alley'or highway, within the City used or intended to be used by the general public,to the-extent the City has the right to allow the Grantee to use them. "tariff'means the rate schedules, rules, and regulations relating to utility service, filed with and approved by the Commission during the term of this Franchise. Section 2, Grant of Franchise, The City of Spokane Valley, a Washington municipal corporation (hereinafter the "City"),hereby giants unto Avista (hereinafter"Grantee"), a franchise for a period of 25 years, beginning on the effective date. of this Ordinance, to install, construct, operate, maintain,replace and use all necessary equipment and-facilities to place gas facilities in,under,on,across; over, through, along or below the_public tights-of-way and public places located in the City of Spokane Valley,as-approved under City permits issued pursuant to this franchise(hereinafter the"franchise"). The parties may renew this franchise for an additional 25 years by mutual written agreement, which may be exercised at any time within the_final year of the initial franchise term. Ordinance 13-013,Avista Natural Gas Franchise Page 2 of 13 Section 3. Fee. No right-of-way use fee is imposed for the term of this franchise. Any such right-of-way use or franchise fee that may be imposed by subsequent ordinance would apply to any subsequent franchise,if any,between the parties. Section 4. Recovery of Costs. Grantee shall reimburse the City for all costs of one publication of this franchise in a local newspaper, and required legal notices prior to any public hearing regarding this franchise,.contemporaneous with its acceptance of this franchise. Grantee shall be subject to all permit and inspection fees associated with activities undertaken through the authority granted in this franchise or under City Code. Section 5. Non-Exclusivity. This franchise is granted upon the express condition that it shall not in any manner prevent the City from granting other or further franchises or permits in any rights- of-way. This and other franchises shall, in no way, prevent or prohibit the City from using any of its rights-of-way or affect its jurisdiction over them or any part of them. Section 6. Non-Interference with Existing Facilities. Avista shall have the discretion to determine the placement of its Facilities as.may be necessary to provide safe and reliable Gas service within the Franchise-Area, subject to the following non-interference requirements. The City Shall have prior and superior right to the use of its rights-of-way and public properties for installation and maintenance of its facilities and other governmental purposes. The City hereby retains full power to make all changes, relocations, repairs, maintenance, establishments, improvements, dedications or vacation of same as the City may deem fit, including the dedication, establishment, maintenance, and improvement of all new rights-of-way, streets, avenues, thoroughfares and other public properties of every type and description, Any and all such removal or replacement shall be at the sole expense of the. Grantee. The owners of all utilities,public or private, installed iir or on such public properties prior to the installation of the facilities of the Grantee, shall have preference as to the positioning and location of such utilities so installed with respect to the Grantee. Such preference shall continue in the event of the necessity of relocating or changing the grade of any such public properties. Grantee's facilities shall be constructed and maintained.in such manner as not to interfere with any public use,or with any other pipes,wires, conduits or other facilities that may have been laid in the rights-of-way by or under the City's authority. If the work done under this franchise damages or interferes in any way with the public use or other facilities, the Grantee shall wholly and at its own expense make such provisions necessary to eliminate the interference or damage to the satisfaction of the Public Works Director. Section 7. Construction Standards. All work authorized and required hereunder shall comply- with omplywith all generally applicable City Codes and regulations. Grantee shall also comply with all applicable federal and state regulations,laws and practices. Grantee is responsible for the supervision,condition,and. quality of the work done,whether it is by itself or by contractors,assigns or agencies, Application of said federal, state, and City Codes and regulations shall be for the purposes of fulfilling the City's public trustee role in administering the primary use and purpose of public properties, and not for relieving the Grantee of any duty, obligation, or responsibility for the competent design, construction, maintenance, and operation of its facilities. If Grantee.shall at any time be required, or plan,to excavate trenches in any area covered by this franchise,the Grantee shall afford the City an opportunity to permit other franchisees and utilities to share such excavated trenches, provided that: (I) such joint use shall not unreasonably delay the work of the Grantee;.and(2)such joint use shall not,adversely affect Grantee's facilities or safety thereof. Joint users Ordinance 13-013,Avista Natural Gas Franchise Page-3 of 13 333 will be required to contribute to the costs of excavation and filling on a pro-rata basis. Section S. Protection of Monuments. Grantee shall comply with applicable state laws relating to protection of monuments. Section 9. Tree Trimming. The Grantee shall have the authority to conduct pruning,trimming and removal for access to Grantee's facilities in the tights-of-way subject to compliance with the City Code, provided however;that.Grantee shall consult with and get approval from the City prior to the removal of any tree, which will not be unreasonably withheld. All such pruning; trimming and removal shall be done by Grantee or its authorized contractors at the Grantee's sole cost and expense. Section 10. Emergency Response, The Grantee shall,within 30 days of the execution of this franchise, designate one or more responsible people and an emergency contact,along with the procedures to be followed when.responding to an emergency. After being notified of an emergency, Grantee shall cooperate with the City to respond in a timely manner with action to aid in the protection the health and safety of the public. In the event the Grantee refuses to promptly take the directed action or fails to fully comply with such direction, or if emergency conditions exist which require immediate action to prevent imminent injury or damages to persons or property, the City may take such actions as it believes are necessary to protect persons or property and the Grantee shall be responsible to reimburse the City for its costs and any expenses. Section 11. One-Call System, Pursuant to RCW 19.122,Grantee is responsible for becoming familiar with, and understanding, the provisions of Washington's One-Call statutes. Grantee shall comply with the terms and conditions set forth in the One-Call statutes. Section 12. Safety. All of Grantee's facilities in the rights-of-way shall be constructed and maintained in a safe and operational condition. Grantee shall follow all safety codes and other applicable regulations in the installation,operation,and maintenance of the'facilities. Section 13. Movement of Grantee's Facilities for Others. Whenever any third party shall have obtained permission from the City to use any right—of=way for the purpose of moving any building or other oversized structure,Grantee, upon at least 14 days' written notice from the City, shall move,at the expense of the third party desiring to move the building or structure; any of Grantee's facilities that may obstruct the movement thereof;provided,that the path for moving such building or structure is the path of least interference to Grantee's facilities, as determined by the City. Upon good cause shown by Grantee, ' the City may require more than 14 days'notice to Grantee to move its facilities. Section 14. Acquiring New Facilities. Upon Grantee's acquisition of any new facilities in the rights-of-way, or upon Grantee's notice of any addition or annexation to the City of any area in which Grantee retains any such facilities in the rights-of-way, the Grantee shall submit to the City a written statement describing all facilities involved, whether authorized by franchise or any other form of prior right, and specifying the location of all such facilities. Such facilities shall immediately be subject to the terms of this franchise. Section 15. Dangerous Conditions - Authority of City to Abate. Whenever excavation, installation, construction, repair, maintenance, or relocation of facilities authorized by this franchise has caused or contributed to a condition that substantially impairs the lateral support of the adjoining right-of- way, road, or other public place, or endangers the public, adjoining public or private property or street utilities,the City may direct Grantee,at Grantee's sole expense;to take all necessary actions to protect the Ordinance 13-013,Avista Natural Gas Franchise Page 4 of 13 public and property. The City may require that such action be completed within a prescribed time, In the event that Grantee 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 enter upon the property and take such actions as are necessary to protect the public, adjacent public or private property,or street utilities,or to maintain the lateral support thereof,and all other actions deemed by the City to be necessary to preserve the public safety and welfare; and Grantee shall be liable to the City for all costs and expenses thereof to the extent caused by Grantee. Section 16. Hazardous Substances. Grantee shall comply with all applicable federal, state and local laws, statutes, regulations and orders concerning hazardous substances relating to Grantee's facilities in the rights—of-way. Grantee agrees to indemnify the City against any claims, costs, and expenses, of any kind,whether direct or indirect, incurred by the City arising out of the release or threat of release of hazardous substances caused by Grantee's ownership or operation of its facilities within the City's rights-of-way. Section 17. Environmental. Grantee shall comply with all environmental protection laws, rules, recommendations, and regulations of the United States and the State of Washington, and their various subdivisions and agencies as they presently exist or may hereafter be enacted, promulgated, or amended, and shall indemnify and hold the City harmless from any and all damages arising, or which may arise,or be caused by,or result from the failure of Grantee fully to comply with any such laws,rules, recommendations, or regulations, whether or not Grantee's acts or activities were intentional or unintentional. Grantee shall further indemnify the City against all losses, costs, and expenses (including legal expenses) which the City may incur as a result of the requirement of any government or governmental subdivision or agency to clean and/or remove any pollution caused or permitted by Grantee,whether said requirement is during the term of the franchise or subsequent to its termination: Section 18. Relocation of Facilities. Grantee agreesand covenants, at its sole cost and expense, toprotect, support, temporarily disconnect, relocate or remove from any street any of its facilities when so required by the City, provided that Grantee shall in all such cases have the privilege to temporarily bypass, in the authorized portion of the same street upon approval by the City,any section of its facilities required to be temporarily disconnected or removed. If the City determines that the project necessitates the relocation of Grantee's then-existing facilities,the City shall: a) At least 60 days prior to the commencement of such improvement project, provide Grantee with written notice requiring such relocation;and b) Provide Grantee with copies of pertinent portions of the plans and specifications for such improvement project and a proposed location for Grantee's facilities so that Grantee may relocate its facilities in other City rights-of-way in order to accommodate such improvement project. c) After receipt of such notice and such plans and specification, Grantee shall complete relocation of its facilities at no charge or expense to the City so as to accommodate the improvement project. Grantee may, after receipt of written notice requesting a relocation of its facilities,submit to the City written alternatives to such relocation. The City shall evaluate such alternatives and advise Grantee in writing if one or more of the alterliatives are suitable to accommodate the work which would otherwise necessitate relocation of the facilities. If so requested by the City, Grantee shall submit additional • Ordinance 13-013,Avista Natural Gas Franchise Page 5 of 13 information to assist.the City in making such evaluation. The City shall give each alternative proposed by Grantee full and fair consideration. In the event the City ultimately determines that there is no other reasonable alternative,Grantee shall relocate its facilities as otherwise provided in this section. The provisions of this section shall in no Manner preclude or restrict Grantee from making any arrangements it may deem appropriate when responding to a request for relocation of its facilities by any person or entity other than the City,where the facilities to be constructed by said person or entity are not or will not become City owned,operated or maintained facilities,provided that such arrangements do not unduly delay a City construction project. If the City or a contractor for the City is delayed at any time in the progress of the work by an act or neglect of the Grantee or those acting for or on behalf of Grantee,then Grantee shall indemnify,defend and hold the City, its officers, officials, employees and volunteers harmless froth any and all claims, injuries, damages, losses or suits including attorneys' fees to the extent arising out of or in connection with such delays, except for delays and damages caused by the City. This provision may not be waived by the parties except in writing. I Section 19. Abandonment of Grantee's Facilities. No facility constructed or owned by Grantee may be abandoned without the,expresswritten consent of the City, which consent shall not be unreasonably Withheld. The City has discretion and authority to.direct Grantee to remove a facility abandoned by Grantee (whether or not the entity had permission to abandon the facility) and restore the rights-of-way to their pre-removal condition when: (a) a City project involves digging that will encounter the abandoned facility and the location of the abandoned facility will impede the progress of such project; (b)the abandoned facility poses a hazard to the health,safety,or welfare of the public;. (c)the abandoned facility has collapsed,broken,or otherwise failed. Grantee may delay removal of the abandoned.facility until such time as the City commences a. construction project in the rights-of-way unless(b)or(c)above applies. When(b)or(c)applies,Grantee shall remove the abandoned facility from the rights-of-way as soon as weather conditions allow, unless the City expressly allows otherwise in writing. The expense of the removal, and restoration of improvements in the rights-of-way that were damaged by the facility or by the removal.process, shall be the sole responsibility of the Grantee. If Grantee fails to remove the abandoned facilities in accordance with the above; then the City may incur costs to remove the abandoned facilities and restore the rights-of-way, and is entitled to reimbursement from Grantee for such costs, including reasonable attorney's fees and costs. Section 20.. Maps and Records Required. Grantee shall provide the City,at no cost to the City: 1. A route map that depicts the general location of the Grantee's facilities placed in the rights-of- way. The route map shall identify facilities as aerial or underground and is not required to depict service lines to individual subscribers. The Grantee shall also provide an electronic map of the aerial/underground facilities in relation to the right-of-way centerline reference to allow the City to add this information to the City's Geographic Information System ("GIS") program. The information in this subsection shall be delivered to the City by December 1,annually. Ordinance.13-013,Avista Natural Gas Franchise Page 6 of 13. 2: In connection with the construction of any City project,Grantee shall provide to the City,upon the City's reasonable request,copies of available drawings in use by Grantee showing the location of such facilities. Grantee shall field locate its facilities in order to facilitate design and planning of City improvement projects. 3. Upon written request of the City,Grantee shall provide the City with the most recent update available of any plan of potential improvements to its facilities within the franchise area; provided, however, any such plan so submitted shall be deemed confidential and for informational purposes only, • and shall not obligate Grantee to undertake any specific improvements within the franchise area..The information in this subsection shall be delivered to the City by December 1,annually. 4. In addition to the requirements of subsection 1 of this section,the parties agree to periodically share GIS files upon written request,provided Grantee's GIS files are to be used solely by the City for governmental purposes. Any files provided to Grantee shall be restricted to information required for Grantee's engineering needs for construction or maintenance of facilities that are the subject of this franchise; Grantee is prohibited from selling any GIS information obtained from City to any third parties. 5. Public Disclosure Act. Grantee acknowledges that information submitted to the City may be subject to inspection and copying under the Washington Publie Disclosure Act codified in RCW 42.56. Grantee shall mark as ".PROPRIETARY/CONFIDENTIAL" each page or portion thereof of any documentation/information which it submits to the City and which it believes is exempt from public inspection or copying. The City agrees to timely provide the Grantee With a copy of any public disclosure request to inspect or copy documentation/information which the Grantee has.provided to the City and marked as"PROPRIETARY/CONFIDENTIAL"prior to allowing any inspection and/or copying as well as provide the Grantee with a time frame, consistent with RCW 42.56.520, to provide the City with its written basis for non-disclosure of the requested documentation/information. In the event the City • disagrees with the Grantee's basis for non-disclosure,the City agrees to withhold release of the requested documentation/infbrmation in dispute for a reasonable amount of time to allow Grantee an opportunity to file a legal action tinder RCW 42.56.540. Section 21. Limitation on Future Work. In the event that the City constructs a new street or reconstructs an existing street, the Grantee shall not be permitted to excavate such street except as set forth in the City's then-adopted regulations relating to street cuts and excavations. The City is a party to the Inland Northwest Regional Pavement Cut Policy, and shall maintain a copy of the currently adopted Policy on its website or similar broad means of dissemination. Section 22. Reservation of Rights by City, The City reserves the right to refuse any request for a permit to extend facilities. Any such refusal shall be supported by a written statement from the Public Works Director that extending the facilities, as proposed, would interfere with the public health, safety or welfare. Section 23. Remedies to Enforce Compliance. hi addition to any other remedy provided herein, the City reserves the right to pursue any remedy to compel or force Grantee and/or its successors and assigns to comply with the terms-hereof,and the pursuit of any right or remedy by the City shall not prevent the City from thereafter declaring a forfeiture or revocation for breach of the conditions herein, Section 24. City Ordinances and Regulations. Nothing herein shall be deemed to direct or restrict the City's ability to adopt and enforce all necessary and appropriate ordinances regulating the performance of the conditions of this franchise,including any reasonable ordinances made in the exercise of its police powers in the interest of public safety and for the welfare of the public. The City shall have Ordinance 13-013,Avista Natural Gas Franchise Pagel of 13 the authority at all times to control by appropriate regulations the location, elevation, and manner.of construction and maintenance of any facilities by Grantee, and Grantee shall promptly conform With all such regulations, unless compliance would cause Grantee to violate other requirements of law or the tariff. In the event of a conflict between the Municipal Code and this franchise,the Municipal Code shall • control Section 25. Vacation. The City may vacate any City road, right-of-way or other City property which is subject to rights granted by this franchise in accordance with state and local law, Any relocation of facilities resulting from a street vacation shall require a minimum of 180 days notice as provided for in section 36. Section 26. Indemnification. 1. Grantee hereby covenants not to bring suit and agrees to indemnify, defend and hold harmless the City, its officers, employees; agents and representatives from any and all claims, costs, judgments, awards or liability to any person arising from injuty, sickness or death of any person or damage to property of any nature whatsoever relating to or arising out of this franchise agreement;except for injuries and damages caused solely by the negligence of the City. This includes but is not limited to inj my: a) For which the negligent acts or omissions of Grantee, its agents, servants, officers or employees in performing the activities authorized by a franchise are a proximate cause; b) By virtue of the City permitting grantee's use of the City's rights-of-ways or other public property; c) Arising as a result of the negligent acts or omissions of Grantee, its agents, servants,. officers or employees in barricading, instituting trench safety systems or providing other adequate warnings of any excavation, construction or work upon the facility, in any right-of-way, or other public place.in.performance of work or services permitted under a franchise. 2. Grantee's indemnification obligations pursuant to subsection l of this section shall include assuming liability for actions brought by Grantee's own employees and the employees of Grantee's agents, representatives, contractors and subcontractors even though grantee might be immune under RCW Title 51 from direct suit brought by such an employee. It is expressly agreed and understood that this assumption of potential liability for actions brought by the aforementioned employees is limited solely to claims-against the City arising by virtue of Grantee's exercise of the-rights set forth in a. franchise. The obligations of Grantee under this subsection have been mutually negotiated by the parties, and Grantee acknowledges that the City would not enter into a franchise without Grantee's waiver. To the extent required to provide this indemnification and this indemnification only, Grantee waives its immunity under RCW Title 51: 3. Inspection or acceptance by the City of any work performed by-Grantee at the time of completion of construction shall not be grounds for avoidance of any of these covenants- of indemnification. Provided, that Grantee has been given proinpt written notice by the City of any such claim, said indemnification obligations shall extend to claims which are not reduced to a suit and any Ordinance 13-013,Avista Natural Gas Franchise Page 8 of 13 claims which may be compromised prior to the culmination of any litigation or the institution of any litigation, The City has the.right to defend or participate in the defense of any such claim. 4. In the event any matter(for which the City intends to assert its rights under this Section) is presented to or filed with the City, the City shall promptly notify Grantee thereof and Grantee shall have the right, at its sole cost and expense, to settle and compromise such matter as it pertains to Grantee's responsibility under this Section 26. In the event any snit or action is commenced against the City based upon any such matter, the City shall likewise promptly notify Grantee thereof, and Grantee shall have the right,at its sole cost and expense, to settle and compromise such suit or action, or defend the same at its sole cost and expense, by attorneys of its own election, as it pertains to Grantee's • responsibility under this Section 26. Failure of the City to give notice as required herein shall not be a defense except and to the extent that Grantee demonstrates actual prejudice therefrom. 5. In the event that Grantee refuses the tender of defense in any suit or any claim, said tender having been made pursuant to this section, and said refusal is subsequently determined by a court having jurisdiction(or such other tribunal that the parties shall agree to decide the matter),to have been a • wrongful refusal on the part of Grantee,then Grantee shall pay all of the City's costs for defense of the action,including all reasonable expert witness fees,.reasonable attorneys' fees,the reasonable costs of the City,and reasonable attorneys'fees of recovering under this subsection, 6. Grantee's duty to defend, indemnify and hold harmless City against liability for damages caused by the concurrent negligence of(a) City or City's agents, employees, or contractors,. and (b) Grantee or Grantee's agents, employees,or contractors,shall apply only to the extent of the negligence of Grantee or Grantee's agents, employees,or contractors. hi the event that a court of competent jurisdiction determines. that a franchise is subject to the provisions of RCW 4.24.115, the parties agree that the indemnity provisions hereunder shall be deemed amended to conform to said statute and liability shall be allocated as provided herein. 7-. Notwithstanding any other provisions of this section,Grantee assumes the risk of damage to its facilities located in the rights-of-way and upon City-owned property 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 actions on the part of the City, its officers,agents, employees or contractors. Grantee releases and waives any and all such claims against the.City, its officers, agents,employees or contractors. Grantee 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 Grantee's facilities as the•result of any interruption of service due to damage or destruction of•Grantee's facilities caused by or arising out of activities conducted by the City, its officers, agents, employees or contractors, except to the extent any such damage or destruction is caused by or arises from the negligence or•.any willful or malicious actions on the part of the City,its officers,agents,employees or contractors. 7. The provisions of this section shall survive the expiration, revocation or termination of this franchise. Section 27. Insurance. Grantee shall procure and maintain for the duration of the franchise, insurance, or provide self-insurance 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 hereunder to Grantee, its agents,representatives or employees. Ordinance 13-013,Avista Natural Gas Franchise Page 9 of 13 • • Applicant's Maintenance of insurance as required by this franchise shall not be construed to limit the liability of the Grantee to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. 1. Automobile Liability insurance with Iimits no less than $1,000,000 Combined Single Limit per accident for bodily injury and property damage, This insurance shall cover all owned,non-owned,hired or leased vehicles used in relation to this franchise. Coverage shall be written on Insurance Services Office (ISO)form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary,- the policy shall be endorsed to provide contractual liability coverage; and 2, Commercial General Liability insurance shall be written on Insurance Services Office (ISO occurrence form CG 00 01, or a substitute form providing equivalent liability coverage acceptable to the City, and shall cover products liability. The City shall be a named as an insured under the Applicant's Commercial. General Liability insurance. policy using ISO Additional Insured-State or Political Subdivisions-Permits-CG.20 12 or a substitute endorsement acceptable to the City providing equivalent coverage. Coverage shall be written on an occurrence basis with limits no less than $1,000,000 Combined Single Limit per occurrence and$2,000,000 general aggregate for personal injury, bodily injury and property damage. Coverage shall include but not be limited to: blanket contractual;products/completed operations;broad form property; explosion,collapse and underground(XCU);and Employer's Liability. The insurance polie.ies are to contain, or be endorsed to contain, the following provisions for Commercial General Liability insurance: 1. The Grantee's insurance coverage shall be primary insurance with respect to the City as outlined in the Indemnification section of this franchise. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of the Grantee's insurance and shall not contribute with it. 2. The Grantee's insurance shall be endorsed to state that coverage shall not be cancelled, except after 30 days prior written notice has been given to the City. Insurance is to be-placed with insurers with a current A.M.Best rating of not less than A:VII. Grantee shalt furnish the City with original certificates and a copy of any amendatory endorsements,including the additional insured endorsement,evidencing the insurance requirements of the Grantee prior to the adoption of this Ordinance. Any failure to comply with the reporting provisions of the policies required herein shall not affect coverage provided to the City,its officers,officials,employees or volunteers.. Section 28.- Performance Bond Relating to Construction Activity. Before undertaking any of the work, installation, improvements, construction, repair, relocation or maintenance authorized by this franchise,. Grantee, or any parties Grantee contracts with to perform labor in the performance of this -franchise; shall, upon the request of the City,furnish a bond executed by Grantee or Grantee's contractors and a corporate surety authorized to operate a surety business in the State of Washington, in such sum as may be set and approved by the City, not to exceed-twenty-five thousand dollars, as sufficient to ensure performance of Grantee's obligations under this franchise.The bond shall be conditioned so that Grantee shall observe all the covenants,terms and conditions and shall faithfully perform all of the obligations of Ordinance 13-013,Avista Natural Gas Franchise Page 10 of 13 this franchise, and to repair or replace any defective work or materials discovered in the City's road, streets, or property. Said bond shall remain in effect for the life of this franchise. In the event-Grantee proposes to construct a project for which the above-mentioned bond would not ensure performance of Grantee's obligations under this franchise, the City is entitled to require such larger bond as may be appropriate under the circumstances. Section 29. Modification. The City and Grantee hereby reserve the right to alter, amend or modify the terms and conditions of this franchise upon written agreement of both parties to such alteration,amendment or modification. Section 30. Forfeiture and Revocation.. If Grantee willfully violates or fails to comply with any of the provisions of this franchise, or through willful or unreasonable negligence fails to heed or comply with any notice given Grantee by the City under the provisions of this franchise, and an adequate opportunity to cure the violation or non-compliance has been given in writing to Grantee, then Grantee shall, at the election of the City, forfeit all rights conferred hereunder and this franchise may be revoked or annulled by the City after a hearing held-upon reasonable notice to Grantee.The City may elect, in lieu of the above and without any prejudice to any of its other legal rights and remedies, to obtain an order • • from the Spokane County Superior Court compelling Grantee to comply with the provisions of this franchise and to recover damages and costs incurred by the City by reason of Grantee's failure to comply. • • Section 31. Assignment, This franchise may not be assigned or transferred without the written approval of the City, except that Grantee can assign this franchise without approval of, but upon notice to the City to, any parent, affiliate or subsidiary of Grantee or to any entity that acquires all or substantially all the assets or equity of Grantee,-by merger, sale,consolidation or otherwise. Section 32. Acceptance. Not later than 60 days after passage of this Ordinance, the Grantee must accept the franchise herein by filing with.the City Clerk an unconditional written acceptance thereof. Failure of Grantee to so accept this franchise within said period of time shall be deemed a rejection thereof by Grantee, and the rights and privileges herein granted shall, after the expiration of the 60-day period,absolutely cease,unless the time period is extended by ordinance duly passed for that purpose. Section 33. Survival. All of the provisions, conditions and requirements of sections: 4, 5, 6, 12, 15, 16,. 17, 18, 19,26,27,28; 36, 37 and 38 of this franchise shall be in addition to any and all other obligations and liabilities Grantee may have to the City at common law, by statute, by ordinance, or by contract,and shall survive termination of-this franchise,and any renewals or extensions hereof. All of the provisions, conditions, regulations and requirements contained in this franchise shall further be binding upon the heirs, successors, executors, administrators, legal representatives and.assigns of Grantee and City and all privileges, as well as all obligations and liabilities of Grantee shall inure to their respective heirs,successors and assigns equally as if they were specifically mentioned herein. Section 34. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section,sentence,clause or phrase of this Ordinance. In the event that.any of the provisions of this Ordinance are held to be invalid by a court of competent jurisdiction,the-City reserves the right to reconsider the grant of the franchise and may amend, repeal, add, replace or modify any other provision of the franchise, or may terminate the franchise. Section 35. Renewal. Application for extension or renewal of the term of this franchise shall be made no later than 180 days of the expiration.thereof. In the event the time period granted by this franchise expires without being renewed by the City, the terms and conditions hereof shall continue in } Ordinance 13-013,..Avista Natural Gas Franchise Page 11 of 13 effect until this franchise is either renewed or terminated by the City. Section 36. Notice. Any notice or information required or permitted to be given by or to the parties under this franchise may be sent to the following addresses unless otherwise specified,in writing: The City: City of Spokane Valley Attn:City Clerk 11707 East Sprague,Suite 106 Spokane Valley,WA 99206 Grantee: Avista Corporation Attn:Director of Operations 1411 East-Mission Ave.MSC-46 Spokane,WA 99202 Phone:(509)495-4590 Section 37. Choice of Law. Any litigation between the City and Grantee arising under or regarding this franchise shall occur,if in the state courts,in the Spokane County Superior Court, and if in the federal courts, in the United States District Court for the Eastern District of Washington. Section 38. Non-Waiver. The City shallbe vested with the power and authority to reasonably regulate the exercise of the privileges permitted by this franchise in the public interest. Grantee shall not be relieved of its obligations to comply with any of the provisions of this franchise by reason of any failure of the City to enforce prompt compliance,nor does the City waive or limit any of its rights under this franchise by reason of such failure or neglect. Section 39. Entire Agreement. This franchise constitutes the entire understanding and agreement between the parties as to the subject matter herein and no other agreements or understandings, written or otherwise, shall be binding upon the parties upon execution and acceptance hereof. This: franchise shall also supersede and cancel any previous right or claim of Grantee to occupy the City roads as herein described. Section 40. Effective Date. This Ordinance shall be in full force and effect five days after publication of the Ordinance or a sununaIy thereof occurs in the official newspaper of the City of Spokane Valley as provided by law. PASSED by the City Council this 171 day of September,2013. I ' M or,Thomas .Towey vt/ " I t r'�� { iii ai.n1/ .hristine bridge,City Clerk Approved a f Form: Office(. the Citorney Date o ublicati.•. September 20,2013 Effective Date:, September 25,2013 Ordinance 13-013,Avista Natural Gas Franchise Page 12 of 13 Accepted vista Corp ratios By: The Grantee, Avista Corporation, for itself, and for its successors and assigns, does accept all of the terms and conditions of the foregoing franchise. IN WITNESS WHEREOF,,19&vrn HI LL I p 1 has signed this.. 15T day of_ Peri.ohek ,2013. Subscribed and sworn before me thisO day of, 7p e ,2013. • �'oottitlf/Ji/J / J Q`..s %0N 4457 �' Nota y Public in and for the State of k'4. -c�5110i -v Aft •0 w residing in StePniptig, /4/4111140.74,41 NOTARY My commission expires .241217 3 n : puBUL t �'11CF wNs oN� J t t !4 to 1 11 Ordinance 13-013,Avista Natural Gas Franchise Page 13 of 13