2021/01/27 Council Agenda Packet

3.4. Franchise Nonexclusive This Franchise shall be nonexclusive, and subject to all prior rights, interests, easements or licenses granted by the City to any Person to use any property, Right -of -Way, right, interest or license for any purpose whatsoever, including the right of the City to use same for any purpose it deems fit, including the same or similar purposes allowed Grantee hereunder. The City may at any time grant authorization to use the Rights -of -Way for any purpose not incompatible with Grantee's authority under this Franchise and for such additional franchises for telecommunications systems as the City deems appropriate. 3.5. Police Powers A. Grantee's rights hereunder are subject to the police powers of the City to adopt and enforce ordinances necessary to the safety, health and welfare of the public, and Grantee agrees to comply with all laws and ordinances of general applicability enacted, or hereafter enacted, by the City or any other legally constituted governmental unit having lawful jurisdiction over the subject matter hereof. The City shall have the right to adopt, from time to time, such ordinances as may be deemed necessary in the exercise of its police power; provided, however, that nothing in this Franchise prohibits Grantee's ability to contest the lawfulness of any such law or ordinance under applicable law. The City reserves the right to exercise its police powers, notwithstanding anything in this Franchise to the contrary, and any conflict between the provisions of this Franchise and any other present or future lawful exercise of the City's police powers shall be resolved in favor of the latter; provided, however, that nothing in this Franchise prohibits Grantee's ability to contest the lawfulness of same. 4. FEE PAYMENT AND FINANCIAL CONTROLS 4.1. Fees 4.1.1. Franchise Fee Pursuant to RCW 35.21 860, the City is precluded from imposing a franchise fee on a "telephone business" as defined in RCW 82.16.010, or a ` service provider" as defined in RCW 35 99.010, for use of the Rights -of -Way, excepting actual administrative expenses directly related to the franchise or any tax authorized by state law. Grantee hereby warrants that its operations as authorized under this Franchise are those of a "telephone business" as defined in RCW 82.16.010 or a `service provider" as defined in RCW 35.99 010. As a result, the City will not impose a franchise fee under the terms of this Franchise, other than as described herein. Grantee stipulates and agrees that should its business activities be subject to taxation that Grantee shall pay to the City the rate then applicable to such services under the City's tax code, and consistent with state and federal law. The City reserves its right to impose a franchise fee, in accordance with state or federal law, on Grantee for purposes other than to recover its administrative expenses, if Franchisee's operations as authorized by this Franchise change such that Grantee's activities are not those of a "telephone business" as defined in RCW 82.16.010 and Grantee is not a "service provider" as defined in RCW 35.99.010, and if there are no statutory prohibitions on the imposition of such fees The City also reserves its rights if RCW 35.21.860 is removed or is does not apply to a service provided by Grantee, Grantee agrees the five percent (5%) franchise fee will apply to {DPK2242501 DOCX;4/13113.000007/ } Wireline Franchise 9 of 30