TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Public Works
Phil Williams
425-556-2880
DEPARTMENT STAFF:
Public Works
Steve Hitch
Engineering Supervisor
Public Works
Steve Flude
Deputy Director of Public Works
TITLE:
title
Authorize the Mayor to Sign Two Franchise Agreements with King County for City-Owned Water and Wastewater Infrastructure in King County Right-of-Way
OVERVIEW STATEMENT:
recommendation
?The City operates two separate water/wastewater utilities, one that serves the community inside city limits and one that serves the Novelty Hill area. Each utility owns water and wastewater facilities (including pipes, manholes, fire hydrants) that are located outside city limits within King County right-of-way. King County grants utility franchises to the City to authorize the use of County right-of-way for the placement and maintenance of utility facilities. The City has eight utility franchise agreements with King County of various durations, including three franchise agreements that expired in 2018.
The King County Council passed an ordinance to impose a new franchise fee on local water and wastewater purveyors to charge rent for use of King County right-of-way in 2016. This fee applies to all franchise utilities, including electricity, gas, communications, water, and wastewater (stormwater in King County right-of-way is owned and operated by King County). There was a legal challenge to the fees, which delayed implementation. The legal challenges have concluded, and King County is now imposing these fees.
City staff have been negotiating the terms of the franchise agreements and the amount of the franchise fee for several years. The franchise agreements have been consolidated into two agreements, the City Utility and Novelty Hill. The fee is based on the amount and value of King County right-of-way that is used by the City and Novelty Hill utilities. The City successfully negotiated lower fees that w...
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