7a - Lakehaven Utility District FranciseLakehaven Utility District
Franchise Ordinance
City Council Meeting
February 16, 2m6
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Background
RCW 35A.47.040 permits the City to grant non-
exclusive franchises for the use of public rights -of -way
for public and private facilities for public service.
Lakehaven PUD is one of the City's franchisees.
Over the past year, the City negotiated the terms of a
new franchise agreement with Lalcehaven Utility
District.
Negotiated Franchise
10 year term with two possible five year extensions upon mutual
agreement of the parties.
The City will take responsibility for fire hydrant and streetlight
payments previously billed by Lakehaven to its ratepayers.
The City will not initiate proceedings under Chapter 35.13A RCW
to assume the water and/or sewer service jurisdiction of
Lakehaven during the term of the Franchise.
Lakehaven will pay the City a Franchise Fee as consideration for
the rights granted to Lakehaven under the Franchise as follows:
• 2oi6-19, 3.6 percent
• 2020-23, 3.8 percent
• 2024-26, 4.0 percent
Mayor's Recommendation
The Mayor recommends approval of the proposed ordinance
granting Lakehaven a franchise to install, operate, and
maintain its water and sewer systems within the City's rights -
of -way.