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7a - Lakehaven Utility District FranciseLakehaven Utility District Franchise Ordinance City Council Meeting February 16, 2m6 r 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.