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2025, 07-15 Formal B Meeting Packet AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING FORMAL B FORMAT Tuesday, July 15, 2025 6:00 p.m. Remotely via ZOOM Meeting and In Person at Spokane Valley City Hall, Council Chambers 10210 E. Sprague Ave. Spokane Valley, WA 99206 Council Requests Please Silence Your Cell Phones During Council Meeting NOTE: Members of the public may attend Spokane Valley Council meetings in-person at the address provided above, or via Zoom at the link below. Members of the public will be allowed to comment in-person or via Zoom as described below. Citizens must register by 4 p.m. the day of the meeting to provide comment by Zoom. Please use the links below to register to provide verbal or written comment. Sign up to Provide Verbal Public Comment at the Meeting via Calling-In Submit Written Public Comment Prior to the Meeting Join the Zoom WEB Meeting ------------------------------------------------------------------------------------------------------------------------------- CALL TO ORDER INVOCATION: Adrian DaSilva, PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA SPECIAL GUESTS/PRESENTATIONS: Mr. Terry Powell, You Rock Recognition Award PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: This is an opportunity for the public to speak on any subject except agenda action items, as public comments will be taken on those items where indicated. Please keep comments to matters within the jurisdiction of the City Government. This is not an opportunity for questions or discussion. Diverse points of view are welcome but please keep remarks civil. Remarks will be limited to three minutes per person. If a person engages in disruptive behavior or makes individual personal attacks regarding matters unre before the three-minute mark. To comment via zoom: use the link above for oral or written comments as per those directions. To comment at the meeting in person: speakers may sign in to speak but it is not required. A sign-in sheet will be provided at the meeting. ACTION ITEMS: 1. Resolution 25-014 Surplus Real Property Tony Beattie \[public comment opportunity\] 2. Motion Consideration: Spokane Regional Health District Agreement Gloria Mantz \[public comment opportunity\] NON-ACTION ITEMS: 3. Admin Report: Aging and Long-Term Care Presentation John Hohman, Lynn Kimball Council Agenda July 15, 2025 Page 1 of 2 4. Admin Report: Steering Committee of Elected Officials Interlocal Agreement Steve Roberge 5. Admin Report: Fatbeam Franchise Update Tony Beattie INFORMATION ONLY (will not be reported or discussed): GENERAL PUBLIC COMMENT OPPORTUNITY: General public comment rules apply. COUNCIL COMMENTS CITY MANAGER COMMENTS EXECUTIVE SESSION ADJOURNMENT Council Agenda July 15, 2025 Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: July 15, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Motion: Resolution 25-014 Declaring Property Surplus GOVERNING LEGISLATION: Spokane Valley Municipal Code 3.49.020 - Disposition of City property PREVIOUS COUNCIL ACTION TAKEN: May 31, 2022, Council allocated $6 million of the Fiscal Recovery Fund (CLFR) toward property acquisition January 31, 2023, Council consensus to withheld $2 million from the Affordable Housing and Homeless call for projects for property acquisition nd February 27, 2024 Council consensus to acquire the parcels located at the corner of 2 Avenue and Carnahan Rd. to be used for Affordable Housing development July 23, 2024 Council Consensus to release an RFP for Affordable and Market Rate Housing for the Carnahan property st The property located at 4908 E. 1 Avenue was deeded to the City to satisfy a judgment on October 27, 2021. On December 23, 2024, City Council adopted Ordinance 24-019 providing for the potential transfer of property for affordable housing development for public benefit purposes pursuant to RCW 39.33.015. July 8, 2025, administrative report on Resolution 25-014. BACKGROUND: nd The City purchased real property located at the corner of 5008 E. 2 Avenue (Parcel No. 35232.1503 ) and 228 S. Carnahan Rd. (Parcel No. 35232.1509) on March 25, 2024 for $630,000. st The property located at 4908 E. 1 Avenue (Parcel No. 35232.1304) was deeded to the City to satisfy an outstanding judgment on October 27, 2021. A Satisfaction of Judgment was filed on October 27, 2021 under Spokane County Superior Court Cause No. 14-2-00840-1 and recorded by the Spokane County Auditor on November 1, 2021. On October 29, 2024, the City released an RFP entitled Affordable & Market Rate Housing on City Owned Property to seek proposals for the development of one or both parcels at the mitment to providing affordable housing and homeownership opportunities. On April 22, 2025, Council reached consensus and approved the Affordable and Market Rate Housing RFP award for the real property located at the corner of 5008 E. 2nd Avenue (Parcel No. 35232.1503 ) and 228 S. Carnahan Rd. (Parcel No. 35232.1509) and at 4908 E. 1st Avenue (Parcel No. 35232.1304) to Habitat for Humanity of Spokane. Declaring the properties surplus is a necessary step for the City to finalize the award and effectuate the transfer of the properties to Habitat for Humanity of Spokane. City Council provided consensus on July 8, 2025 to place Resolution 25-014 on a future agenda for motion consideration. A draft Resolution to declare this property surplus is attached to this RCA. OPTIONS: Move to approve Resolution 25-014 declaring as surplus certain real property of the City; or take other action deemed appropriate. RECOMMENDED ACTION OR MOTION: Move to approve Resolution 25-014 declaring as surplus certain real property of the City. BUDGET/FINANCIAL IMPACTS: Pursuant to the award, Habitat for Humanity of Spokane will bear the costs of the transfer, including closing, debt service and other liabilities. The City will not be responsible for any costs related to the development of the affordable housing. STAFF CONTACT: Chelsie Walls, Finance Director ATTACHMENTS: Proposed Resolution No. 25-014 Declaring Surplus CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 25-014 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, DECLARING CERTAIN REAL PROPERTY OF THE CITY SURPLUS TO THE NEEDS OF THE CITY, AUTHORIZING DISPOSAL OF THE SAME, AND OTHER MATTERS RELATED THERETO. WHEREAS, Spokane Valley Municipal Code (SVMC) 3.49.020(A) requires that real and personal property be declared surplus by the Spokane Valley City Council prior to its disposal; and WHEREAS, the criteria for a declaration that the property is surplus to the needs of the City are set forth in SVMC 3.49.020(A), and includes that the City has or anticipates no practical, efficient, or appropriate use for the property, and that the property is anticipated to be suitable for affordable housing purposes; and WHEREAS, upon such a declaration passed by resolution of the Spokane Valley City Council, the City Manager is authorized to sell surplus real property pursuant to SVMC 3.49.020(B); and nd WHEREAS, the City purchased real property located at the corner of 5008 E. 2 Avenue (Parcel No. 35232.1503 ) and 228 S. Carnahan Rd. (Parcel No. 35232.1509) on March 25, 2024 ; and st WHEREAS, The property located at 4908 E. 1 Avenue was deeded to the City to satisfy a judgment on October 27, 2021. WHEREAS, City department directors have been notified of the surplus nature of this property, and no department has any desire to acquire or use the proposed surplus property; and WHEREAS, the City would like to dispose of these items that are unneeded or not useful to the City, and are suitable for use as affordable housing as defined by SVMC 3.49.030(B)(1). NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington as follows: Section 1. Declaration of surplus real property. The Spokane Valley City Council hereby declares that the real property referred to as Spokane County Parcel No. 35232.1503, Parcel No. 35232.1509 and Parcel No. 35232.1304 , and legally identified as: Property Number 1 The North 97.5 feet of Lot 5, Block 15, Sprague Street Addition, according to plat recorded in Volume "B" of Plats, page 82; Situate in the City of Spokane Valley, County of Spokane, State of Washington. and Lots1, 2, 3, 4, 9, 10, 11 and 12, Block 15, Sprague Street Addition, according to plat recorded in Volume "B" of Plats, page 82; Resolution 25-014 Declaring Real Property as Surplus Page 1 of 2 Situate in the City of Spokane Valley, County of Spokane, State of Washington. Tax Parcel Number(s): 35232.1503 & 35232.1509 and Property Number 2 Lot 4, Block 13, Sprague Plats, Page 82, Situated in the City of Spokane Valley, County of Spokane, State of Washington. Tax Parcel Number: 35232.1304 is surplus to the needs of the City, and the City has no practical, efficient, or appropriate use for the property, and the property is anticipated to be suitable for use as affordable housing as defined by SVMC 3.49.030(B)(1). The property being declared surplus is identified by parcel map in Attachment A to this resolution. Section 2. Authorization to dispose of surplus property. The City Manager is authorized to dispose of the surplus real property identified in Section 1 of this Resolution pursuant to SVMC 3.49.020(B)(3)(b) for affordable housing purposes in accordance with SVMC 3.49.030. Section 3. Effective Date. This Resolution shall be effective upon adoption. Adopted this ____ day of July, 2025. CITY OF SPOKANE VALLEY: ATTEST: Pam Haley, Mayor Marci Patterson, City Clerk Approved as to form: _______________________________ Office of the City Attorney Resolution 25-014 Declaring Real Property as Surplus Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: July 15, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Motion Consideration -Interlocal Agreement with SRHD for Opioid Remediation GOVERNING LEGISLATION: SVMC 2.15.020; chapter 39.34 RCW; Spokane Regional Opioid Abatement Council MOU; Multiple opioid settlements PREVIOUS COUNCIL ACTION TAKEN: Numerous meetings from April 2022 through September 2024: Approval of One Washington MOU for settlements with (1) opioid d; (2) pharmacies and m II; (3) Johnson & Johnson; and (4) Kroger. Approved MOU establishing Spokane Regional Opioid Abatement Council August 29, 2023. Administrative report on opioid funding project options on August 13, 2024; Consensus to proceed with agreements with SRHD and the County on September 24, 2024. Administrative report discussing SRHD Interlocal Agreement BACKGROUND: Over the course of the previous three years, the State of Washington and litigating local jurisdictions secured settlements against various entities involved in the production, sale, and distribution of opioids. City Council chose to participate in each of the settlements secured by the State of Washington against various entities contributing to the opioid crisis, which include the following: . The City is expected to receive a total of $140,844.29 through 2038, with payments ranging from $5,773 to $9,727.98 per year. To date, the City has received a total of $26,703.92 from Settlement I. . The City anticipates receiving a total amount similar to Settlement I over the course of 15 years. The national opioid settlement administrator has yet to provide the exact breakdown for local governments for Settlement II; however, estimates from the Attorney General show that the City is expected to receive a total of $140,021.39 through 2037 with payments ranging from $3,152.36 to $11,784.51 per year. To date, the City has received a total of $34,840.96 as a result of Settlement II. Payment amounts are higher in the first two years given the structure of the settlement. , included a one-time payment in mid-June, which resulted in $37,680.96 to the City. provide the exact breakdown for local governments for Settlement IV; however, estimates from the Attorney General show that the City is expected to receive a total of $15,342.32 through 2035 with payments ranging from $1,256.81 to $1,478.60 per year. In addition, a class-action lawsuit against McKinsey & Company was finalized in February 2024. Entities that entered into prior settlements were eligible to automatically receive funds from the McKinsey settlement. The City received $2,895.79 from the McKinsey settlement in September, 2024. In total the City has received approximately $105,000 from the settlements to date. Five percent must be retained annually by the City in order to pay administrative costs for Spokane County operating the Opioid Abatement Council. Staff received consensus from Council on September 24, 2024 to utilize some of the funds for the Spokane SRHDto expand their opioid dashboard ($16,900), and conduct a needs assessment for the City ($40,300). City Council also provided consensus to enter into an agreement supporting On July 8, 2025, Staff discussed the SRHD projects with Council which are described below. Education/Preventative Program SRHD Opioid Dashboard Enhanced Dataset The SRHD collects data regarding opioid overdoses within Spokane County from emergency rooms, EMS, and the medical examiner. They combine and provide this information through the Opioid Dashboard Project, located at https://countyhealthinsights.org/county/spokane/initiative/opioid-dashboard/. Currently, the data focuses on identified overdoses, overdose deaths, age, sex, ethnicity, education level, limited location information (Spokane County as only identified location), and limited information regarding ) use. The project will include: 1. Disaggregating currently available indicators to provide City of Spokane Valley or zip code specific information when available and comparing to available state data 2. Acquiring data for new indicators and disaggregating such data to provide City of Spokane Valley or zip code specific information when available. New indicators are dependent on the availability of timely and reliable data. The SRHD will work with the City of Spokane Valley to explore the feasibility of proposed new indicators which may include the following topics: a. Information on polysubstance use b. Information relating to whether individuals are housed or unhoused c. Industry-specific information relating to field of work (legal, medical, construction, sales, etc.) d. Further breakdown of age groups such as 18-25, 26-30, 31-40, 41-50, etc. e. Repeat hospital visits or EMS calls f. Information specific to youth, school or school district g. Use of saboxone, methadone, and naloxone h. Length of substance use history i. Income information j. Insurance status k. Seeking treatment or detox l. Breakdown of the specific hospitals utilized m. Arrests, convictions, amount of controlled substances confiscated by law enforcement. Education/Preventative Program SRHD Needs Assessment for Spokane Valley SRHD has provided a proposal to conduct a Needs Assessment specific to Spokane Valley regarding opioid use/misuse and overdose deaths. This would include outreach and data collection for opioid treatment needs within Spokane Valley, which could then be used for planning purposes for future treatment or other abatement options. Costs for this proposal are estimated at $40,300. According to the scope of work in the proposed agreement, the project would include the following: 1. Spokane Valley Community Needs Assessment. SRHD shall conduct a comprehensive opioid- use and overdose-related community needs assessment to identify current activities, assets, gaps, and needs to prevent and abate opioid use, misuse, and overdoses by: i. Gathering and analyzing relevant health, socio-demographic, and behavior data of Spokane Valley residents. ii. Collecting data from stakeholders, which may include medical providers, outreach teams, law enforcement, EMS, and fire personnel, school districts, community groups, behavioral and substance use treatment providers, business organizations (such as the Greater Spokane Valley Chamber of Commerce), courts and other relevant criminal justice groups, as well as impacted individuals who either use or have used opioids through surveys, interviews, community conversations, or such other means as determined appropriate. City of Spokane Valley staff will help with identifying and recruiting partners and community participants. The final methods and approaches used will depend on costs, timeliness, and willingness of partners to participate and will be determined by the SRHD and City of Spokane Valley staff, iii. Identify assets which provide education, resources, treatment, prevention, or assistance to those using, misusing, or overdosing from opioids. Such identification shall include a breakdown of assets by category such as facility, service, staff, funding, equipment, and educational material/program; by location such as those assets within the City boundaries versus those located in other regional locations, and by how those assets can be accessed either by referral, self-admit, or free versus paid. This breakdown is dependent on the availability of information. iv. Analyze the gathered information and compile it into a comprehensive assessment of needs, gaps, and assets for Spokane Valley residents. On July 8, 2025 Council reached consensus to authorize staff to return with a motion consideration to approve the ILA with SRHD. OPTIONS: Move to authorize the City Manager to execute the ILA with SRHD; or take other action as deemed appropriate. RECOMMENDED ACTION OR MOTION: Move to authorize the City Manager to execute the ILA with SRHD. BUDGET/FINANCIAL IMPACTS: To date, the City has received approximately $105,000 as a result of the opioid settlements; the SRHD ILA will utilize $57,200 from these funds. STAFF CONTACT: Gloria Mantz, City Services Administrator ___________________________________________________________________________ ATTACHMENTS: Draft Interlocal Agreement with SRHD for Opioid Remediation CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: July 15, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Aging and Long Term Care Presentation GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: N/A BACKGROUND: Lynn Kimball, Executive Director for Aging and Long Term Care of Eastern Washington will review the 2024 service data for Spokane Valley and provide information on the current services and resources that are available in our area for our senior residents. OPTIONS: Discussion. RECOMMENDED ACTION OR MOTION: Discussion. BUDGET/FINANCIAL IMPACTS: N/A. STAFF CONTACT: John Hohman, City Manager ATTACHMENTS: PowerPoint Presentation 1 | Page 2003 - 458 - 509 FAX 2509 | - Care of 458 - 509 TEL ADVOCACY. ACTION . ANSWERS. Spokane Valley | Long Term Northern Ferry, Pend Oreille, Spokane, Stevens & Whitman counties SERVING: WWW.ALTCEW.ORG Eastern Washington 2024 Service Data Aging & 1313 N Atlantic St., Ste 3000 | Spokane, WA 99201 | Information, assistance and referralAssistance navigating services to stay at homeHelp navigating and applying for benefitsHelp with MedicareSpecialists in dementia care and housing assistance 7281 - 960 - Call to Access:509 Home Care Case - Spokane Valley Family Caregiver SupportPowerful Tools for Caregivers Kinship Navigator and Caregiver SupportMedicaid InManagementCare CoordinationSupportive HousingHospital to Home Care Transitions ADVOCACY. ACTION . ANSWERS. Caregivers and FamiliesMedicaid Services and Community Supports | WWW.ALTCEW.ORG And Community Resources as needed! Adult Day ServicesBathing AssistanceFalls Prevention ClassesFalls Prevention Phone ConsultationGroup Meal SitesHome Delivered MealsLegal AssistanceMinor Home Repair Senior Services Additional Resources WA Cares Our role: Outreach, provider contracting, beneficiary enrollment and navigationPilot for Spokane County residents begins January 6, 2026Program launches statewide on July 1, 2026 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: July 15, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation AGENDA ITEM TITLE: Joint Planning Interlocal Agreement (ILA) Amendment GOVERNING LEGISLATION: Chapter 36.70A RCW (Growth Management Act) amended during 2021-2022 Legislative session pursuant to House Bill 1717. PREVIOUS COUNCIL ACTION TAKEN: The ILA was entered by the City in 2003 (Contract 03- 070) and amended in 2009 (Contract 09-019). BACKGROUND: The Steering Committee of Elected Officials (SCEO) is made up of elected representatives of the County and cities, including Spokane Valley, within the County. It is tasked with providing cooperation and collaboration among jurisdictions and recommending policies in accordance with the Growth Management Act (GMA). HB 1717 requires local jurisdictions to work with federally recognized tribes who choose to participate in the GMA planning process. The SCEO, after consideration, recommended adding the Spokane and Kalispell Tribes of Indians as members to the SCEO on November 13, 2024. Spokane County Commissioners adopted County Resolution 25-0166 (attached) on April 1, 2025, to amend the ILA and implement the recommendation of the SCEO. It was conveyed to the City on June 12, 2025. The resolution modified the ILA as recommended by the SCEO by adding one elected representative, each from the Kalispell and Spokane Tribes to the SCEO. (The City of Spokane Valley has two representatives, County and City of Spokane three each, and small cities one each.) The ILA requires signature of all participating jurisdictions for ratification. OPTIONS: Consensus to place on a future agenda for motion consideration; or take other action deemed appropriate. to authorize the Mayor to sign the GMA Joint Planning Interlocal Agreement or take other action. RECOMMENDED ACTION: Consensus to place on a future agenda for motion consideration. BUDGET/FINANCIAL IMPACTS: No additional budget impact. STAFF CONTACT: Steve Roberge, Planning Manager ___________________________________________________________________________ ATTACHMENTS: Letter from Spokane County, Board of County Commissioners Resolution 25-0166 and ILA RCA Motion Consideration for Commerce Grants Page 1 of 1 S COTT R.C HESNEY,AICP,D IRECTOR OF P LANNING May 9, 2025 Mayor Tim Hattenburg City of Spokane Valley 10210 E Sprague Ave Spokane Valley, WA. 99206 Dear Mayor Hattenburg, The Spokane County Board of Commissioners considered and adopted the attached amendment to the Interlocal Agreement that creates the Steering Committee of Elected Officials and Countywide Planning Policies. Resolution 25-0166is attached. The ILA now requires signatures from all participating jurisdictions for ratification. Please see the amended ILA and signature pages for each jurisdiction. When executed, please return it to me and include any resolution or action if used. Once received, Spokane County Planning will assemble and distribute the fully executed ILA. Regards, Scot R. Chesney, AICP, director C:Mary Kuney, Chair, Spokane County BoCC Ginna Vasquez, Clerk to the BoCC 1026W EST B ROADWAY,S POKANE W ASHINGTON,99260• 509.477.1500•SCHESNEY @ SPOKANECOUNTY.ORG CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: July 15, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Ordinance 25-012 Fatbeam Telecommunications Franchise GOVERNING LEGISLATION: RCW 35A.47.040 PREVIOUS COUNCIL ACTION TAKEN: On July 28, 2015, City Council voted to adopt Ordinance 15-014, a telecommunications franchise to Fatbeam. BACKGROUND: Fatbeam currently owns and operates telecommunications facilities within the public rights-of-way pursuant to Franchise Ordinance 15-014. Ordinance 15-014 is set to expire in August of this year. This Franchise Ordinance 25-012 will extend the nonexclusive franchise rights to Fatbeam for another ten years beginning on the effective date. The Franchise will allow Fatbeam to continue to install, construct, operate, maintain, replace and use all necessary equipment and facilities to place telecommunications facilities in, under, on, across, over, through, along or below the public rights-of-way located in the City of Spokane Valley, as approved under City permits telecommunication fiber to local education facilities. All costs to operate, and maintain its facilities will be borne by Fatbeam, and Fatbeam will be required to maintain its insurance and bonds in accordance with the terms of the franchise. The adoption. The franchise will become effective five days after publication. OPTIONS: Place on a future agenda for first reading; or take other action as appropriate. RECOMMENDED ACTION OR MOTION: Consensus to place on a future agenda for first ordinance reading. BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: Tony Beattie, Senior Deputy City Attorney ___________________________________________________________________________ ATTACHMENTS: Draft Proposed Franchise Ordinance 25-12 DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 25-012 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, GRANTING A NON-EXCLUSIVEFRANCHISETOFATBEAMTO CONSTRUCT, MAINTAIN AND OPERATE TELECOMMUNICATIONS FACILITIES WITHIN THE PUBLIC RIGHTS-OF-WAY OF THE CITYOF 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 other 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 citys legislative body on the day of its introduction norfor 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, nor without being published at least once in a newspaper ofgeneral 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 Franchisecontained 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, do ordain as follows: Section 1.Definitions. For the purpose of this Ordinance, the following words and terms shall have the meaning set forth below: City Managermeans the City Manager or designee. Community and Community and Public Works Director or his/her designee. constructionor constructshall mean constructing, digging, excavating, laying, testing, operating, extending, upgrading, renewing, removing, replacing, and repairing a facility. Ordinance 25-012, FatbeamTelecommunicationsFranchise1of 17 DRAFT dayshall meana 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. issued by the City which grants rights to Grantee to construct and operate its telecommunication facilities as set forth herein. franchise areashall mean the entire geographic area within the City as it is now constituted or may in the future be constituted. hazardous substancesshall have the same meaningas RCW 70.105D.020(10). maintenance, maintaining or maintainshall 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. permitteeshall mean a person or entity who has been granted a permit by the Permitting Authority. permitting authorityshall mean the City Manager or designee authorized to process and grant permits required to perform work in the rights-of-way. productshall refer to the item, thing or use provided by the Grantee. public propertyshall mean any real estate or any facility owned by the City. equipment owned by Grantee whereby such move or relocation is necessitated by - of- right-of-wayshall 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 waynow or hereafter held or administered by the City. streetsor highwaysshall 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. appurtenances, antennas, and other facilities necessary to furnish and deliver telecommunications services, including but not limited to poles with crossarms, poles without crossarms, wires, lines, conduits, cables, communication and signal Ordinance 25-012, FatbeamTelecommunicationsFranchise2of 17 DRAFT lines and equipment, braces, guys, anchors, vaults, and all attachments, appurtenances, and appliances necessary or incidental to the distribution and use of telecommunications services. The abandonment by Grantee of any telecommunications facilities as defined herein shall not act to remove the same from this definition. Section 2.Grant of Franchise. The City of Spokane Valley, a Washington municipal corporation (hereinafter the City), hereby grants untoFatbeam(hereinafter Grantee), a franchisefor a period of 10 years, beginning on the effective date of this Ordinance, to install, construct, operate, maintain, replace and use all necessary equipment and facilities to place telecommunications facilities in, under, on, across, over, through, along or below the public rights- of-way located in the City of Spokane Valley, as approved under City permits issued pursuant to this franchise(hereinafter the franchise). This franchise does not permit Grantee to use such facilities to provide cable services as defined by 47 C.F.R.§ 76.5(ff). Section 3.Fee. No right-of-way use fee, also known as a franchise fee,is imposed for entering into thisfranchise. Any such feethat may be imposed by subsequent ordinance would apply to any subsequent franchise, if any, between the parties. Section 4.City Use.The following provisions shall apply regarding City use. A.Grantee agreesto reserve to the City the right to access four dark fiber strands(2pair)along the route identified in Exhibit Aas adopted or amended,within the boundaries of the City, for sole and exclusive municipal, non-commercial use or designation agrees that it shall not use the City Reserved Fibers as a public utility provider of telecommunications business service to the public. B.The City shall havethe right to access by connection to the City Reserved Fibersat existing Granteesplice points or reasonably established access points within the City limits; provided that all splicing shall be sole responsibility of the Grantee. TheCity shall provide at least 30 days written notice of intent to access the City Reserved Fibers.Upon any access or use of the City Reserved Fibers,City shall pay Grantee a recurring monthly charge of$34.00 per fiber pair per mile in use by the Cityunless otherwise specifically agreed by both the parties in writingand shall enter into standard govern the terms and conditions for use of the City Reserved Fibers. Said recurring monthly charge shall not be imposed until such time as the fiber is put into use by the City. C.In the event the City Reserved Fibers are the last fibers remaining in fiber bundle, then the following shall apply: 1. If the City is using the fibers, then the rate the City shall pay Granteewill change from the City Fiber Rateto standard commercial rate. 2. If the City is not using the fibers, the City shall have the option of abandoning the City Reserved Fibers in lieu of paying standard commercial rate. Ordinance 25-012, FatbeamTelecommunicationsFranchise3of 17 DRAFT 3. If Granteestrands as set forth in subsections Aand B, immediately above, shall again be in effect. D.The City shall pay all costs associated with constructing any connectionto the City Reserved Fibers. The City Reserved Fibers shall have a term that matches the duration of this FranchiseOrdinance. E.Consistent with RCW 35.99.070, at such time when Granteeisconstructing, relocating, or placing ducts or conduits in public rights-of-way, theCommunity andPublic Works Director may require Granteeto provide the City with additional duct or conduit and related structures, at incremental cost,necessary to access the conduit at mutually convenient locations. Any ducts or conduits provided by Granteeunder this section shall only be used for City municipal, non- commercial purposes. 1. The City shall not require that the additional duct or conduit space be connected to the access structures and vaults of the Grantee. 2. This section shall not affect the provision of an institutional network by a cable television provider under federal law. 3. Granteeshall notify the Community and Public Works Director at least 14 daysprior to opening a trench at any location to allow the City to exercise its options as provided herein. Section 5.Recovery of Costs.Granteeshall reimburse the City for all costs of one publication of this franchisein a local newspaper, and required legal notices prior to any public hearing regarding this franchise, contemporaneous with its acceptance of this franchise. Granteeshall be subject to all permitand inspectionfees associated with activities undertaken through the authority granted in this franchiseor under City Code. Section 6.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 7.Non-Interference with Existing Facilities. 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, unless RCW 35.99.060 provides otherwise. Should Granteefail to remove, adjust or relocate its telecommunications facilities by the date established by theCommunity andPublic Works Directors written notice to Granteeand in accordance with RCW 35.99.060, the City may cause and/or effect such removal, adjustment or relocation, and the expense thereof shall be paid by Grantee. Ordinance 25-012, FatbeamTelecommunicationsFranchise4of 17 DRAFT The owners of all utilities, public or private, installed in or on such public properties prior to the installation of the telecommunications 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. telecommunications 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 Citys authority. If the work done under this franchisedamages or interferes in any way with the public use or other facilities, the Granteeshall wholly and at its own expense make such provisions necessary to eliminate the interference or damage to the satisfaction of the Community and Public Works Director. Section 8.Construction Standards. All work authorized and required hereunder shall comply with all generally applicable City Codes and regulations. Granteeshall also comply with all applicable federal and state regulations, laws and practices. Granteeis 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 CityCodes and regulationsshall be for the purposes of fulfilling the Citys public trustee role in administering the primary use and purpose of public properties, and not for relieving the Granteeof any duty, obligation, or responsibility for the competent design, construction, maintenance, and operation of its telecommunications facilities. Granteeis responsible for the supervision, condition, and quality of the work done, whether it is by itself or by contractors, assigns or agencies. If Granteeshall at any time be required, or plan, to excavate trenches in any area covered by this franchise, the Granteeshall afford the City an opportunity to permit other franchisees and utilities to share such excavated trenches, provided that: (1) such joint use shall not unreasonably delay the work of the Grantee; and (2) such joint use shall not adversely affect telecommunications facilities or safety thereof. Joint users will be required to contribute to the costs of excavation and filling on a pro-rata basis. Section 9.Protection of Monuments. Granteeshall comply with applicable state laws relating to protection of monuments. Section 10.Tree Trimming. The Granteeshall have the authority to conduct pruning and trimming for access to telecommunications facilities in the rights-of-way subject to compliance with the City Codeincluding obtaining all necessary permits. All such trimming shall be done at the sole cost and expense. Section 11.Emergency Response. The Granteeshall, within 30 days of the execution of this franchise, designate one or more responsible people and an emergency 24-hour on-call personnel and the procedures to be followed when responding to an emergency. After being notified of an emergency, Granteeshall cooperate with the City to immediately respond with action to aid in the protection of thehealth and safety of the public. Ordinance 25-012, FatbeamTelecommunicationsFranchise5of 17 DRAFT In the event the Granteerefuses 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 Granteeshall be responsible to reimburse the City for its costs and any expenses. Section 12.One-Call System. Pursuant to chapter19.122RCW, Granteeis responsible for becoming familiar with, and understanding, the provisions of Washingtons One-Call statutes. Granteeshall comply with the terms and conditions set forth in the One-Call statutes. Section 13.Safety. All of telecommunications facilities in the rights-of-way shall be constructed and maintained in a safe and operational condition. Granteeshall follow all safety codes and other applicable regulations in the installation, operation, and maintenance of the telecommunications facilities. Section 14.Movement of Telecommunications Facilities for Others. Whenever any third party shall have obtained permission from the City to use any rightof-way for the purpose of moving any building or other oversized structure, Grantee, upon at least 14 dayswritten notice from the City, shall move, at the expense of the third party desiring to move the building or structure, any of telecommunications facilities that may obstruct the movement thereof; provided, that the path for moving such building or structure is the path of least interference to telecommunications facilities, as determined by the City. Upon good cause shown by Grantee, the City may require more than 14 daysnotice to Granteeto move its telecommunications facilities. Section 15.Acquiring New Telecommunications Facilities. Upon acquisition of any new telecommunications facilities in the rights-of-way, or upon any addition or annexation to the City of any area in which Granteeretains any such telecommunications facilities in the rights-of- way, the Granteeshall submit to the City a written statement describing all telecommunications 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 16.Dangerous Conditions -Authority of City to Abate. Whenever excavation, installation, construction, repair, maintenance, or relocation of telecommunications 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, street or other public place, or endangers the public, adjoining public or private property or street utilities, the City may direct Grantee, at sole expense, to takeall necessary actions to protect the public and property. The City may require that such action be completed within a prescribed time. In the event that Granteefails 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 necessaryto preserve the public safety and Ordinance 25-012, FatbeamTelecommunicationsFranchise6of 17 DRAFT welfare;and Granteeshall be liable to the City for all costs and expenses thereofto the extent caused by Grantee. Section 17.Hazardous Substances. Granteeshall comply with all applicablefederal,state and locallaws, statutes, regulations and orders concerning hazardous substances relating to telecommunications facilities in the rightsof-way. Granteeagrees 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 ownership or operation of its telecommunications facilities within the Citys right-of-way. Section 18.Environmental. Granteeshall 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 Granteefully to comply with any suchlaws, rules, recommendations, or regulations, whether or not acts or activities were intentional or unintentional. Granteeshall 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 19.Relocation of Telecommunications Facilities.Granteeagreesand covenants, at its sole cost and expense, to protect, support, temporarily disconnect, relocate or remove from any street any of its telecommunications facilities when so required by the Cityin accordance with the provisions of RCW 35.99.060,provided that Granteeshall 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 itstelecommunications facilities required to be temporarily disconnected or removed. If the City determines that the project necessitates the relocation of then-existing telecommunications facilities, the City shall: A.At least 60 days prior to the commencement of such improvement project, provide Granteewith written notice requiring such relocation; and B.Provide Granteewith copies of pertinent portions of the plans and specifications for such improvement project and a proposed location for telecommunications facilities so that Granteemay relocate its telecommunications 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, Granteeshall complete relocation of its telecommunications facilities at no charge or expense to the City in orderto accommodate the improvement project in accordance with RCW 35.99.060(2). Granteemay, after receipt of written notice requesting a relocation of its telecommunications facilities, submit to the City written alternatives to such relocation. The City shall evaluate such Ordinance 25-012, FatbeamTelecommunicationsFranchise7of 17 DRAFT alternatives and advise Granteein writing if one or more of the alternatives are suitable to accommodate the work which would otherwise necessitate relocation of the telecommunications facilities.If so requested by the City, Granteeshall submit additional information to assist the City in making such evaluation. The City shall give each alternative proposed by Granteefull and fair consideration. In the event the City ultimately determines that there is no other reasonable alternative, Granteeshall relocate its telecommunications facilities as otherwise provided in this section. The provisions of this section shall in no manner preclude or restrict Granteefrom making any arrangements it may deem appropriate when responding to a request for relocation of its telecommunicationsfacilities by any person or entity other than the City, where the telecommunications 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 Granteeor those acting for or on behalf of Grantee, then Granteeshall indemnify, defend and hold the City, its officers, officials, employees and volunteers harmless from any and all claims,costs,injuries, damages, losses or suits including attorneysfees 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. Section 20.Abandonment of Telecommunications Facilities. A. Underground facilities: Granteeshall remove any facilities which have not been used to provide telecommunications services for a period of at least 90 dayswhen: (a) a City project involves digging that will encounter the abandoned facility; (b) the abandoned facility poses a hazard to the health, safety, or welfare of the public; (c) the abandoned facility is 24 inches or less below the surface of the rights-of-way and the City is reconstructing or resurfacing a street over the rights- of-way; or (d) the abandoned facility has collapsed, broke, or otherwise failed. Granteemay, upon written approval by the City,delay removal of the abandoned facility until such time as the City commences a construction project in the rights-of-way unless (b) or (d) above applies. When (b) or (d) applies, Granteeshall remove the abandoned facility from the rights-of- way as soon as weather conditions allow, unless the City expressly allows otherwise in writing. B. Aboveground facilities:Granteeshall remove any facilities which have not been used to provide telecommunications services for a period of at least 90 days. C. 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 Granteefailsto 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 Granteefor such costs, including reasonable attorney's fees and costs. Section 21.Maps and Records Required. Granteeshall provide the City,at no cost to the City: Ordinance 25-012, FatbeamTelecommunicationsFranchise8of 17 DRAFT A. A route map that depicts the general location of the telecommunications facilities placed in the rights-of-way. The route map shall identify telecommunications facilities as aerial or underground and is not required to depict cable types, number of fibers or cables, electronic equipment, and service lines to individual subscribers. The Granteeshall also provide an electronic formatof the aerial/underground telecommunications facilities in relation to the right-of-way centerline reference to allow the City to add this information to the Citys Geographic Information Sprogram.The information in this subsection shall be delivered to the Cityby December 1, annually. B. In addition to subsection Aof this section, the Citymayrequest thatGranteeprovide the information described in subsection Aof this sectionas needed for specific projectsto avoid harm to facilities. To the extent such requests are limited to specific telecommunications facilities at a given location within the franchisearea inconnection with the construction of any City project, Granteeshall provide to the City, upon the Citys reasonable request, copies of available drawings in use by Granteeshowing the location of such telecommunications facilities. Granteeshall field locate its telecommunications facilities in order to facilitate design and planning of City improvement projects. C. Upon written request of the City, Granteeshall provide the City with the most recent update available of any plan of potential improvements to its telecommunications facilities within the franchisearea; provided, however, any such plan so submitted shall be deemed confidential and for informational purposes only, and shall not obligate Granteeto undertake any specific improvements within the franchisearea. D. In addition tothe requirements of subsection Aof this section, the parties agree to periodically share GIS files upon written request, provided GIS files are to be used solely by the Cityfor governmental purposes. Any files provided to Granteeshall be restricted to information required for engineering needs for construction or maintenance of telecommunications facilities that are the subject of this franchise. Granteeis prohibited from selling any GIS information obtained from City to any third parties. E. Public Disclosure Act. Granteeacknowledges that information submitted to the City may be subject to inspection and copying under the Washington Public Disclosure Act codified in chapter 42.56RCW. Granteeshall mark as PROPRIETARY/CONFIDENTIALeach 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 Granteewith a copy of any public disclosure request to inspect or copy documentation/information which the Granteehas provided to the City and marked as PROPRIETARY/CONFIDENTIALprior to allowing any inspection and/or copying as well as provide the Granteewith 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 basis for non-disclosure, the City agrees to withhold release of the requested documentation/information in dispute for a reasonable amount of time to allow Granteean opportunity to file a legal action under RCW 42.56.540. Section 22.Limitation on Future Work. In the event that the City constructs a new street or Ordinance 25-012, FatbeamTelecommunicationsFranchise9of 17 DRAFT reconstructs an existing street, the Granteeshall not be permitted to excavate such street except as set forth in the Citys then-adopted regulations relating to street cuts and excavations. Section 23.Reservation of Rights by City. The City reserves the right to refuse any request for a permit to extend telecommunications facilities. Any such refusal shall be supported by a written statement from theCommunity andPublic Works Director that extending the telecommunications facilities, as proposed, would interfere with the public health, safety,or welfare. Section 24.Remedies to Enforce Compliance.In addition to any other remedy provided herein, the City reserves the right to pursue any remedy to compel or force Granteeand/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 25.City Ordinances and Regulations.Nothing herein shall be deemed to direct or restrict the Citys 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 the authority at all times to control by appropriate regulations the location, elevation, and manner of construction and maintenance of any telecommunications facilities by Grantee, and Granteeshall promptly conform with all such regulations, unless compliance would cause Granteeto violate other requirements of law. In the event of a conflict between Spokane Valley Municipal Code and this franchise, the Spokane Valley MunicipalCode shall control. Section 26.Vacation. The City may vacate any City road, right-of-way,or other City property which is subject to rights granted by this franchisein accordance with state and local law. Any relocation of telecommunications facilities resulting from a street vacation shall require a minimum of 180 daysnotice as providedforin section 37. Section 27.Indemnification. A.Granteehereby covenants not to bring suit and agreesto 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 injury, sickness,or death of any person or damage to propertyof 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 injury: 1. For which the negligent acts or omissions of Grantee, itsagents, servants, officers or employees in performing the activities authorized by a franchise are theproximate cause; 2. By virtue of exerciseof the rights granted herein; Ordinance 25-012, FatbeamTelecommunicationsFranchise10of 17 DRAFT 3. By virtue of the City permitting Gurights-of-waysor other public property; 4. Grantee, itsagents and servants, officers or employees in connection with work authorized on the facility or property over which the City has control, pursuant to a franchise or pursuant to any other permit or approval issued in connection with a franchise; 5. Arising as a result of the negligent acts or omissions of Grantee, itsagents, 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;or 6. Based upon radio frequency emissions or radiation emitted fromGequipment located upon the facility, regardless of whether Gequipment complies with applicable federal statutes and/or FCC regulations related thereto. B.indemnification obligations pursuant to subsection Aof this section shall include assuming liability for actions brought by own employees and the employees of agents, representatives, contractors and subcontractors even though Granteemight 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 exercise of the rights set forth in a franchise.The obligations of Granteeunder this subsection havebeen mutually negotiated by the parties, and Granteeacknowledgesthat the City would not enter into a franchise without waiver.To the extent required to provide this indemnification and this indemnification only, Granteewaives its immunity under RCW Title 51. C.Inspection or acceptance by the City of any work performed by Granteeat the time of completion of construction shall not be grounds for avoidance of any of these covenants of indemnification.Provided, that Granteehas been given prompt 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 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, and has the right to approve any settlement or other compromise of any such claim. D.In the event that Granteerefuses 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 defense of the action, including all reasonable expert witness fees, reasonable fees, the reasonable costs of the City, and reasonabof recovering under this subsection. E.duty to defend, indemnify and hold harmless City against liability for damages Ordinance 25-012, FatbeamTelecommunicationsFranchise11of 17 DRAFT (b) Granteeor agents, employees, or contractors, shall apply only to the extent of the negligence of Granteeor agents, employees, or contractors.In 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 shallbe allocated as provided herein. F.Notwithstanding any other provisions of this section, Granteeassumes the risk of damage to its telecommunication facilities located in the rights-of-wayand 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 any willful or malicious action or gross negligence 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.Granteefurther agr ees 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 facilities as the result of any interruption of service due to damage or destruction ofGfacilities 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 sole negligence or any willful or malicious actions on the part of the City, its officers, agents, employees or contractors. G.The provisions of this section shall survive the expiration, revocation or termination of this franchise. Section 28.Insurance.Granteeshall procure and maintain for the duration of the franchise, 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. Applicants maintenance of insurance as required by this franchiseshall not be construed to limit the liability of the Granteeto the coverage provided by such insurance, or otherwise limit the Citys recourse to any remedy available at law or in equity. A.Automobile Liability insurancewith limits 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 vehiclesused 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 providecontractual liability coverage; and B.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 theCity,and shall cover products liability. The City shall benamed as an insured under the Applicants Commercial General Liability insurance policy using ISO Additional Insured-State or Political Subdivisions-Permits CG 20 12 or a substitute endorsementacceptable to the Cityproviding equivalent coverage. Coverage shall be written on an occurrence basis with limits no less than $2,000,000 Combined Single Limit per occurrence and $2,000,000 general aggregate for personal injury, bodily injury and property damage. Coverage shall include but not Ordinance 25-012, FatbeamTelecommunicationsFranchise12of 17 DRAFT be limited to: blanket contractual; products/completed operations; broad form property; explosion, collapse and underground (XCU); and Employers Liability. The insurance policies are to contain, or be endorsed to contain, the following provisions for Commercial General Liability insurance: 1.The insurance coverage shall be primary insurancewith respect to the Cityas 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 insurance and shall not contribute with it. 2.The insurance shall be endorsed to state that coverage shall not be cancelled, except after 30 daysprior 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. Granteeshall furnish the City with original certificates and a copy of anyamendatory endorsements, including the additional insured endorsement, evidencing the insurance requirements of the Granteeprior 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 29.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 Granteecontracts with to perform labor in the performance of this franchise, shall, upon the request of the City, furnish a bond executed by Granteeor contractors and a corporate surety authorized to operate a surety business in the State of Washington, in such sum asmay be set and approved by the City, in the amount of $25,000, as sufficient to ensure performance of obligations under this franchise. The bond shall be conditioned so that Granteeshall observe all the covenants, terms,and conditions and shall faithfully perform all of the obligations of this franchise, and to repair or replace any defective work or materials discovered in the Citys road, streets, or property. Said bond shall remain in effect for the life of this franchise. In the event Granteeproposes to construct a project for which the above-mentioned bond would not ensure performance of obligations under this franchise, the City is entitled to require such larger bond as may be appropriate under the circumstances. Section 30.Modification. The City and Granteehereby reserve the right to alter, amend,or modify the terms and conditions of this franchiseupon written agreement of both parties to such alteration, amendment or modification. Section 31.Forfeiture and Revocation. If Granteewillfully 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 Granteeby 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, Ordinance 25-012, FatbeamTelecommunicationsFranchise13of 17 DRAFT then Granteeshall, 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 Granteeto comply with the provisions of this franchise and to recover damages and costs incurred by the City by reason of Granfailure to comply. Section 32.Assignment.This franchise may not be assigned or transferred without the written approval of the City, except that Granteecan assign this franchise without approval of,but upon notice to the City to,any parent, affiliate or subsidiary of Granteeor to any entity that acquires all or substantially all the assets or equity of Grantee, by merger, sale, consolidation,or otherwise. Section 33.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 Granteeto 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 34.Survival. All of the provisions, conditions and requirements of sections: 5, 6, 7,8, 13,16, 17, 18, 19, 20, 27, 28,29, 37, 38and 39 of this franchise shall be in addition to any and all other obligations and liabilities Granteemay 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 Granteeand Cityand all privileges, as well as all obligations and liabilities of Granteeshall inure to itsrespectiveheirs, successors and assigns equally as if they were specifically mentioned herein. Section 35.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 the franchise 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 36.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 effect until this franchise is either renewed or terminated by the City. Section 37.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: Ordinance 25-012, FatbeamTelecommunicationsFranchise14of 17 DRAFT The City:City of Spokane Valley Attn: City Clerk 10210EastSprague Avenue Spokane Valley, WA 99206 Grantee:Fatbeam__ Attn: Kim Devlin 2065 West Riverstone Drive, Suite 105 Email:kim@fatbeam.com Phone: (509) 344-1008 Section 38.Choice of Law. Any litigation between the City and Granteearising 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 39.Non-Waiver. The City shall be 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 40.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 Granteeto occupy the Cityroads as herein described. Section 41.Effective Date. This Ordinance shall be in full force and effect five days after publication of the Ordinance or a summary thereof occurs in the official newspaper of the City of Spokane Valley as provided by law. PASSED by the City Council this ________day of ______, 2025. ________________________________________ Pam Haley, Mayor ATTEST: Marci Patterson,City Clerk Ordinance 25-012, FatbeamTelecommunicationsFranchise15of 17 DRAFT Approved as to Form: Office of theCity Attorney Date of Publication: Effective Date: Ordinance 25-012, FatbeamTelecommunicationsFranchise16of 17 DRAFT Accepted by ___________________________: By: The Grantee,____________________________,foritself, and for its successors and assigns, does accept all of the terms and conditions of the foregoing franchise. IN WITNESS WHEREOF, has signed this day of , 2025. Subscribed and sworn before me this day of , 2025. Notary Public in and for the State of residing in My commission expires Ordinance 25-012, FatbeamTelecommunicationsFranchise17of 17