Ordinance 13-013 Avista Natural Gas Franchise 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 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 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, nor 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 1. Definitions. For the purpose of this Ordinance, the following words and terms
shall have the meaning set forth below:
"Avista" means Avista Corporation, dba Avista Utilities, a Washington corporation, and
its respective successors and assigns, agents and contractors.
"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 "construct" shall mean constructing, digging, excavating, laying,
testing, operating, extending, upgrading, renewing, removing, replacing, and repairing a
facility.
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"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 70.105D.020(10).
"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 grants 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 rights-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.
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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 in 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 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
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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 rights-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
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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 agrees and covenants, at its sole cost and
expense, to protect, 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 alternatives are suitable to accommodate the work which would otherwise
necessitate relocation of the facilities. If so requested by the City, Grantee shall submit additional
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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 from 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.
Section 19. Abandonment of Grantee's Facilities. No facility constructed or owned by
Grantee may be abandoned without the express written 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.
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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. Ally 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 Public 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/information in dispute for a reasonable amount of time to allow Grantee an opportunity to
file a legal action under 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. In 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
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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 injury, 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 tuy:
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 1 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 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
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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 suit 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. 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 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.
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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 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 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 shaII 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 policies 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. Ally 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 shall 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 IegaI 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 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 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 summary thereof occurs in the official newspaper of the City of
Spokane Valley as provided by law.
PASSED by the City Council this 17th day of September,2013.
v1 e`. t `
M or,Thomas . Towey %
i PS::
hristine :ainbridge, City Clerk
Approved a ► Form:
611 ? v.
Office o the Ci orney
Date oub li i•
b cat . September 20,2013
Effective Date: September 25,2013
Ordinance 13-013,Avista Natural Gas Franchise Page 12 of 13
Accepted vista Corp ratio'
•
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, Deal,'!/$ has signed this�l5 day of_
,2013. Subscribed and sworn before me this,? day of Getp ',Q , 2013.
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Ordinance 13-013,Avista Natural Gas Franchise Page 13 of 13