city of tacoma
File #: ORD-26829    Version: 1 Name: Ordinance No. 26829
Type: Ordinance Status: Passed
File created: 7/17/2001 In control: City Council
On agenda: 7/17/2001 Final action: 7/17/2001
Title: Ordinance No. 26829
Attachments: 1. ORD-26829
Related files: ORD28365
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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                  Req.#8593

                                    ORDINANCE NO. 26829

 

                  AN ORDINANCE granting a non-exclusive Franchise to the Pierce Transit

                        Authority ("Pierce Transit"), a Public Transit Benefit Area Authority

             2          organized under the laws of the state of Washington, to construct, install,

                        operate, own, control, repair, and maintain bus shelters within the City of

             3          Tacoma, and setting forth provisions, terms, and conditions of the grant of a

             4          franchise under the Tacoma Municipal Code and the City of Tacoma

                        Charter.

             5

                        WHEREAS Pierce Transit is a Public Transit Benefit Area Authority,

             6

 

             7    established under RCW 36.57A, vested with the powers necessary to construct

 

             8    and operate a public transportation system benefiting Pierce County residents,

 

             9    and

 

                        WHEREAS the City of Tacoma is a first-class city operating under the

 

                  laws of the state of Washington, and

           1 2

 

           1 3          WHEREAS the City owns and operates streets, public utilities, and other

 

           1 4    infrastructure improvements within the City boundaries, where transit

 

           15     improvements are proposed; Now, Therefore,

           1 6

                        BE IT ORDAINED BY THE CITY OF TACOMA:

           1 7

 

           18           That, in consideration of mutual promises and covenants herein

 

           19     contained, to be kept, performed, and fulfilled by the respective parties hereto,

 

           20     it is mutually agreed that a Franchise is hereby granted to Pierce Transit, a

           21     government authority organized under the laws of the state of Washington

           22

                  ("Pierce Transit"), to construct, install, operate, repair, maintain, use, control,

           23

 

           24     and own Shelters and license the use of Advertising Space upon such Shelters

 

           25

 

           26

 

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,E,G 004 (11/89)

                  installed within City of Tacoma right-of-way and upon the following terms and

 

                  conditions:

              2

 

              3          Section 1. DEFINITIONS. For purposes of this Franchise, the following

 

              4   terms, phrases, words, and their derivations shall have the meaning given

 

              5   herein where capitalized; words not defined herein shall have their ordinary and

 

              6   common meaning. When not inconsistent with the context, words used in the

              7

                  present tense include the future, words in the plural number include the singular

              8

 

              9   number, words in the singular number include the plural number, and the use of

 

            10    any gender shall be applicable to all genders whenever the sense requires.

 

            I I   The words "shall" and "will" are mandatory and the word "may" is permissive. A

 

            12

                  reference to the City's Charter refers to the same as amended from time to

            13

 

            14    time. References to governmental entities (whether persons or entities) refer to

 

            15    those entities or their successors in authority. If specific provisions of law

 

            1 6   referred to herein be renumbered, then the reference shall be read to refer to

 

            17    the renumbered provision. References to laws, ordinances, or regulations shall

            18

                  be interpreted broadly to cover government actions, however nominated, and

            19

 

            20    include laws, ordinances and regulations now in force or hereinafter enacted or

 

            21    amended.

 

            22                 A. Advertising. "Advertising" shall mean the commercial

 

            23    advertising posters, signs, messages and other materials sold to a third party

            24

                  advertiser or its agent and posted by franchisee in a Shelter.

            25

 

            26

 

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                               B. Advertising Space.  "Advertising Space" shall mean the

 

                  commercial space available on a Shelter for the posting of Advertising.

             2

 

             3                 C. Agen . "Agent" shall mean, for purposes of this Agreement

 

             4    only, the independent contractor providing Advertising by contract to Pierce

 

             5    Transit and which is currently Paftison Outdoor (U.S.) Inc.

 

             6                 D. Agreemen . "Agreement" shall mean this Franchise

             7

                  ordinance.

             8

 

             9                 E. Facilities. "Facilities" or "Facility" shall mean any and all

 

            10    improvements, equipment, or property, including panels for Advertising,

 

            1 1   Advertising Space, benches, and garbage receptacles controlled, owned, or

 

            1 2   maintained by Pierce Transit or its Agent which are necessary for the

            1 3

                  installation and operation of a Shelter.

            14

 

            1 5                F. Franchise. "Franchise" shall mean the rights granted by the

 

            1 6   City, pursuant to Section VIII of the Tacoma City Charter, to Pierce Transit for

 

            1 7   the non-exclusive use of the rights-of-way of the City within the Right-of-Way in

            18    accordance with the terms and conditions of the Agreement.

            19

 

            20                 G. Gross Revenue. "Gross Revenue(s)" shall mean the value

 

            21    proceeding or accruing from the sale of tangible property or service, and

 

            22    receipts (including all sums earned or charged, whether received or not) by

 

            23    reason of the investment of capital in the business engaged in, including

            24

                  rentals, royalties, fees, or other emoluments, however designated (excluding

            25

 

            26    receipts or proceeds from the use or sale of real property or any interest

 

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                  therein, and proceeds from the sale of notes, bonds, mortgages, or other

 

                  evidences of indebtedness, or stocks and the like) and without any deduction

             2

 

             3    on account of the cost of the property sold, the cost of materials used, labor

 

             4    costs, interest or discount paid, or any expense whatsoever, and without any

 

             5    deduction on account of losses.

 

             6                  H. Liabilit . "Liability" shall mean all loss, damages, cost, expense

 

             7

                  (including costs of investigation and attorneys fees and expenses at arbitration,

             8

 

             9    trial, or appeal and without institution of arbitration or suit), liability, claims, and

 

            10    demands of whatever kind or nature (including those arising under the Federal

 

            1 1   Employers Liability Act), arising out of an occurrence relating to this Agreement.

 

            12                  1. Pierce Transit. "Pierce Transit" shall mean the Pierce County

            13

 

            14    Area Transportation Authority Corporation, and any other entity to the extent

 

            15    such entity, as permitted under this Agreement, is exercising any rights to

 

            16    operate bus shelter advertising pursuant to a specific written grant of such

 

            17    rights by Pierce Transit, including, any operator.

 

            18

                                J. Public Ri-ghts-of-Wa . "Public Rights-of-Way" shall mean the

            19

 

            20    public streets and easements which, under the City Charter, the Tacoma

 

            21    Municipal Code, City ordinances, and applicable laws, the City has authority to

 

            22    grant rights-of-way, permits, or licenses for use thereof or has regulatory

 

            23    authority therefor, excluding railroad rights of way, airport, and harbor areas.

 

            24

                  Public Rights-of-Way for the purpose of this Agreement do not include

            25

 

            26    buildings, parks, poles, conduits, or similar Facilities or property owned by or

 

        V

      9,                                                   4-

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                 leased to the City, including, by way of example and not limitation, structures in

 

            1                                            j     i

 

                 the Public Rights-of-Way such as utility poles and light poles.

            2

 

            3                 K. Right-of-Way. "Right-of-Way" shall mean the Public

 

            4    Rights-of-Way.

 

            5                 L. Shelter. "Shelter" shall mean a commercial bus shelter and

 

            6    Facilities located in the Right-of-Way and constructed, installed, and maintained

 

            7

                 by franchisee in accordance with this Franchise.

            8

 

            9                 M. Shelter Site. "Shelter Site" shall mean that portion of the

 

           10    Right-of-Way occupied by a Shelter and that portion of the Right-of-Way within

 

           I 1   a ten-foot radius of the Shelter.

 

           12                 N. Site Plan. "Site Plan" shall mean a plan view drawing showing

           1 3

                 the relationship between the Shelter and the other infrastructure within the

           14

 

           1 5   Right-of-Way, including, but not limited to, sidewalks, curbs, poles, and gutters.

 

           1 6                0. Surplus Revenues. "Surplus Revenues," for purposes of

 

           1 7   Section 3.A of this Franchise, shall mean all revenues received by Pierce

 

           18

                 Transit from the uses authorized pursuant to this Franchise, less: (1) 1 percent

           19

 

           20    payment of Gross Revenues as provided at Section 3.A of this Franchise;

 

           21    (2) all applicable fees, taxes, and tariffs due and payable by Pierce Transit or

 

           22    the City upon Gross Revenues received by Pierce Transit or the City from the

 

           23    uses authorized pursuant to this Franchise; and (3) 15 percent of Gross

 

           24

                 Revenues for Pierce Transit franchise and related costs.

           25

 

           26

 

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,,EG 004 (11/89)

 

                                P. Third Party.  "Third Party" shall mean any person other than

 

                  the City and any person other than Pierce Transit.

             2

 

             3           Section 2. GRANT OF RIGHTS BY CITY.

 

             4                  A. Grant of Non-Exclusive Right of Use. The City grants to

 

             5    Pierce Transit a non-exclusive Franchise to construct, install, operate, maintain,

 

             6    repair, control, and own Shelters and License Advertising Space on said

             7

                  Shelters, in accordance with the terms and conditions of this Agreement.

             8

 

             9    Pierce Transit expressly agrees that it will construct, install, operate, repair,

 

            10    maintain, use, own, or control the Facilities in compliance with this Agreement

 

            1 1   and all applicable City ordinances and state and federal laws, rules, and

 

            1 2

                  regulations.

            1 3

 

            14                  B. Rights Limited. The Franchise is granted solely for the

 

            1 5   purpose of construction, installation, maintenance, repair, operation, use,

 

            1 6   control, and ownership of the Shelters for transit services and licensing of

 

            1 7   Advertising Space and for no other purpose. The licensing of Advertising

 

            18

                  Space shall be subject to the conditions of this Franchise.

            19

 

            20                  C. Rights Subiect to Right-of-Wav Uses. The City intends to

 

            21    continue using the Right-of-Way, as burdened by Pierce Transit for use as a

 

            22    right-of-way and any other activities that do not impair the ability of Pierce

 

            23    Transit to maintain the Facilities. The rights of Pierce Transit are subject and

            24

                  subordinate to the prior and continuing right of City: (1) to use and maintain the

            25

 

            26    entire Right-of-Way subject to the terms and conditions of the Agreement;

 

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                  (2) the City's right to dispose of all or any part of the property, including (but not

 

                  limited to) the air space above and the subsurface area below the Pierce

             2

 

             3    Transit Facilities, subject to the terms and conditions of this Agreement; and

 

             4    (3) to construct and operate, and to change or modify, pipelines, electric lines,

 

             5    and other facilities in, on, upon, over, under, along, across, or through any or all

 

             6    parts of the Right-of-Way, or permit others to do so for City or for other public

             7

                  improvement projects, all or any of which may be freely done at any time or

             8

 

             9    times by the City or others with the City's permission, without liability to the City

 

            io    or to any other party for compensation or damages, unless and except to the

 

            I I   extent that this Agreement otherwise expressly provides therefor. The City

 

            1 2

                  agrees that it will provide reasonable notice to Pierce Transit whenever it

            1 3

 

            14    reasonably believes that a Right-of-Way use, Right-of-Way improvement

 

            1 5   project, or conveyance of Right-of-Way property will require temporary or

 

            16    permanent relocation or removal, temporary closure, modification to, or support

 

            17    of a Shelter.

 

            18

                               D. City Use of Right-of-Way/Relocation.  Pierce Transit

            19

 

            20    understands and agrees that the normal course of Public Right-of-Way use by

 

            21    City may involve construction, maintenance, demolition, leasing, licensing,

 

            22    permitting, and similar activities for public projects that have the potential to

 

            23    impair the Facilities, including the Advertising attached thereto. Pierce Transit

            24

                  understands and agrees that such activities may be caused, from time to time,

            25

 

            26    by reasons including, but not limited to: (1) traffic conditions; (2) public safety;

 

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                  (3) Public Rights-of-Way construction; (4) Public Rights-of-Way repair (including

 

                  resurfacing or widening); (5) change of Public Rights-of-Way grade; and

              2

 

              3   (6) construction, installation, or repair of sewers, drains, water pipes, power

 

              4   lines, signal lines, tracks, government-owned communications systems, public

 

              5   works, public facilities or improvements, or any government-owned utility.

 

              6   Except as may be otherwise provided herein, if the City determines that as a

              7

                  result of such a public project, the location of any of Pierce Transit Facilities

              8

 

              9   must be changed or relocated; or for any other purpose where the work

 

            10    involved would be aided by the removal or relocation of the Facility, the City

 

            I 1   shall notify Pierce Transit of such plans and Pierce Transit shall, at its sole cost

 

            12    and expense, by a time specified by the City, protect, support, temporarily

            13

                  disconnect, relocate, or remove any of its Facilities.

            14

 

            1 5                 If any person that is authorized to place Facilities in the

 

            16    Right-of-Way requests Pierce Transit to protect, support, temporarily

 

            17    disconnect, remove, or relocate Facilities to accommodate the construction,

            18

                  operation, or repair of the Facilities of such other person, Pierce Transit shall,

            19

 

            20    after 30 days' advance written notice, take action to effect.the necessary

 

            21    changes requested. Unless the matter is governed by a valid contract or a

 

            22    state or federal law or regulation, or unless Pierce Transit Facilities were not

 

            23    properly installed, the reasonable cost of the same shall be borne by the person

            24

                  requesting the protection, support, temporary disconnection, removal, or

            25

 

            26

 

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                  relocation at no charge to the City, even if the City makes the request for such

 

                  action.

              2

 

              3                 E. Non-Exclusive Use. Pierce Transit understands that the rights

 

              4   granted herein are nonexclusive. City shall have the right to agree to other

 

              5   nonexclusive occupancies of the Right-of-Way by one or more other person(s);

 

              6   provided, however, that all such subsequent occupancies shall not

              7

                  unreasonably interfere with Pierce Transit's rights.  City shall, where and as

              8

 

              9   practicable, protect from subsequent occupancies the Pierce Transit Facilities

 

            10    where occupancy would have the risk of interference with the bus shelter

 

            I I   advertising.

 

            12

                                F. Use Restricted.  This Agreement does not authorize the

            13

 

            14    provision of any services or uses by Pierce Transit other than the services

 

            15    reasonably involved in the provision and operation of transit services and the

 

            16    uses reasonably involved in the license of Advertising Space or in any way

 

            17    relieve Pierce Transit of any obligation to obtain any additional permits,

 

            18

                  authorizations, licenses, or agreements to use the Right-of-Way to provide

            19

 

            20    other services or uses. The provisions of this Agreement are not a bar to the

 

            21    imposition of similar, different, or additional conditions with respect to the use of

 

            22    the Rights-of-Way.

 

            23                  G. Ownership. Pierce Transit may, pursuant to this Franchise,

            24

 

            25    authorize a Third Party ("Authorized Third Parties") to retain an ownership

 

 

            26    interest in whole or in part in a Shelter or Shelters located in the Right-of-Way;

 

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                 provided that, such Authorized Third Parties shall not be authorized to

 

 

                 construct, install, operate, maintain, repair, control, remove, or relocate such

 

           2

 

           3     Shelters except as an Agent of Pierce Transit and subject to the terms and

 

 

           4     conditions of this Franchise; and, provided further, that such interest of

 

 

           5     Authorized Third Parties shall not create a lien or encumbrance upon the

 

           6     Right-of-Way and shall be subject and subordinate to the rights of the City

 

           7

                 under this Franchise, and other applicable law.

           8

 

           9                  Nothing in this Agreement shall be construed as granting to

 

 

           10    Pierce Transit any interest or right in the property or the improvements on the

 

           11    property other than the rights expressly provided herein.

 

           12                 H. License of Advertising Space. Pierce Transit is authorized to

 

           13

                 license the use of Advertising Space for placement of Advertising; provided

           14

 

           1 5   that, such licensees shall not be authorized under this Franchise to install,

 

 

           16    maintain, repair, relocate, or remove Advertising in or upon the Shelters, except

 

           17    as an Agent of Pierce Transit and subject to the terms and conditions of this

 

           18    Franchise; and, provided further, that the rights of licensee shall be subject and

 

           19

 

           20    subordinate to the rights of the City under this Franchise and other applicable

 

 

           21    law. Pierce Transit shall, within ten days of execution, provide the City with full,

 

 

           22    complete, and executed copies of all license agreements and amendments

 

           23    thereto and extensions or renewals thereof.

 

           24

                               1. Inconsistent Use.  Notwithstanding the above, no Public

 

           25

 

           26    Rights-of-Way shall be used by Pierce Transit in a manner that is inconsistent

 

    ID

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XG 004 (11/89)

 

                  with the terms, conditions, or provisions by which such Public Rights-of-Way

 

                  were created or dedicated, or presently used under applicable laws.

              2

 

              3                 J. No Rights by Implication. No rights shall pass to Pierce Transit

 

              4   by implication. Without limiting the foregoing, by way of example and not

 

              5   limitation, this Agreement shall not include or be a substitute for:

 

              6                        1. Any other permit or authorization required for the

              7

                  privilege of transacting and carrying on a business within the City that may be

              8

 

              9   required by the ordinances and laws of the City;

 

            10                         2. Any permit, agreement, or authorization required in

 

            I I   connection with operations on or in Public Rights-of-Way or property, including

 

            12

                  by way of example and not limitation, street cut permits; or

            13

 

            14                         3. Any permits or agreements for occupying any other

 

            15    property of the City or private entities to which access is not specifically granted

 

            16    by this Agreement.

 

            17                  K. Utilities Agreements. This Agreement shall not be read to

 

            18

                  diminish, or in any way affect, the authority of the City to control and charge for

            19

 

            20    the use of the light, water, storm, refuse, and sewer utilities. Therefore, if

 

            21    Pierce Transit desires to use such utilities it must obtain necessary agreements

 

            22    or consents for such uses, and pay any and all associated fees as may be

 

            23    required by the City.

 

            24

 

            25

 

            26

 

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                        Section 3. PAYMENT.

 

 

 

             2                 A. Payment. As payment for the rights granted herein, Pierce

 

 

             3    Transit will pay quarterly to City 1 percent of the Gross Revenues received by

 

 

             4    Pierce Transit from the uses authorized herein. Each payment shall be due

 

             5    within 30 days after the end of the quarter for which the payment is due. Pierce

 

             6    Transit will also pay or reimburse City for all taxes and assessments that may

 

             7

                  be levied or assessed against the Pierce Transit by reason of the presence of

             8

 

             9    the bus shelter advertising. As further payment for the rights granted herein,

 

            10    Pierce Transit will pay quarterly to the City, all surplus revenues received by

 

 

                  Pierce Transit from the services authorized herein.  Surplus revenues shall be

 

            1 2

                  disbursed to the City by Pierce Transit, pursuant to separate agreement which

            1 3

 

                  terms and conditions shall be negotiated in good faith and mutually agreed

            14

 

            1 5   upon by the parties and which may be amended from time to time. The City

 

            1 6   Manager is hereby authorized to execute any such agreement on behalf of the

 

            1 7   City and any amendments thereto. In the event that the parties have not

 

            18

                  executed such an agreement within 12 months of Pierce Transit acceptance of

            19

 

            20    this Franchise, and thereafter until such an agreement is fully executed, all

 

 

            21    Surplus Revenues shall be disbursed to the City and deposited in a restricted

 

            22    fund for use to improve Rights-of-Way in business districts in which the Shelters

 

            23    are located.

 

            24

                              B. Right-of-Way Improvements.  Pierce Transit and the City

            25

 

            26    recognize the mutual benefit to the parties associated with improvements to

 

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                   and the maintenance and repair of the City Rights-of-Way in the vicinity of the

 

                   Shelters.  Pierce Transit, therefore, agrees that it will disburse quarterly to the

              2

 

              3    City, all surplus revenues received by Pierce Transit from the uses authorized

 

              4    herein. Said Surplus Revenues shall be deposited in a special project fund to

 

              5    be used for cost reimbursement for City Right-of-Way improvements,

 

              6    maintenance, and repair. Eligibility for cost reimbursement shall be as

              7

                   determined pursuant to separate agreement between the City and Pierce

              8

 

              9    Transit, which terms and conditions shall be negotiated in good faith and

 

            10     mutually agreed upon by the parties, and which may be amended from time to

 

            1 1    time. Said Surplus Revenues shall also be available to reimburse the parties

 

            12     for any tax deficiencies resulting from tax obligations under this Franchise or

            13

                   related agreements.  The City Manager is hereby authorized to execute any

            14

 

            15     such agreement on behalf of the City and any amendments thereto. In the

 

            16     event that the parties have not executed such an agreement within 12 months

 

            17     of Pierce Transit acceptance of this Franchise and thereafter until such an

 

            18

                   agreement is fully executed, all Surplus Revenues shall be disbursed to the

            19

 

            20     City and deposited in a restricted fund for use to improve Rights-of-Way in

 

            21     business districts in which the Shelters are located.

 

            22                   C. Interest. Pierce Transit shall pay to City 12 percent interest

 

            23     per annurn of any fee or charge not paid when due and for all costs of

 

            24

                   collection of any fee or charge past due more than 30 days.

            25

 

            26

 

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                                 D. Survival of Terms.  All obligations of Pierce Transit to pay City

 

                   any fee or charge required pursuant to this Franchise shall survive termination

             2

 

             3     of this Agreement.

 

             4                   E. Books/Records/Reports. Pierce Transit shall prepare and

 

             5     furnish to the City, upon request, at the times and in the form prescribed by the

 

             6     City, such reports with respect to the Pierce Transit 's operation, affairs,

             7

                   transactions, or property, as may be reasonably necessary and appropriate to

 

                   ensure compliance with the material provisions of this Franchise, or to permit

             9

 

            10     the performance of any of the rights, functions, or duties of the City or such

 

            1 1    other regulatory entity in connection with the Franchise.

 

            1 2

                                 Pierce Transit shall manage all of its Facility advertising

            1 3

 

            14     operations in accordance with a policy of keeping books and records open and

 

            1 5    accessible to the City. Without limiting its obligations under this Franchise,

 

            1 6    Pierce Transit agrees that it will collect and make available books and records

 

            1 7    for inspection and copying by the City. Pierce Transit shall be responsible for

            18

                   collecting the information and producing it.  Books and records shall be

            19

 

            20     produced to the City at the Tacoma Municipal Building, or such other location

 

            21     as the parties may agree. If documents are too voluminous, or for security

 

            22     reasons cannot be produced at the Tacoma Municipal Building or a mutually

 

            23     agreeable location within the City, then Pierce Transit may produce the material

            24

                   at another central location, provided it also agrees to pay the additional

            25

 

            26     reasonable costs incurred by the City in reviewing the materials.

 

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                                  Pierce Transit shall be responsible for redacting any data that

 

                   federal or state law prevents it from providing to the City.

              2

 

              3                   Records shall be kept for at least six years. Pierce Transit shall

 

              4    maintain records sufficient to show its compliance with the requirements of this

 

              5    Franchise, and shall produce those records within 30 days of a City request.

 

              6

                                  Pierce Transit agrees to meet with a representative of the City,

              7

 

              8    upon request, to review its methodology of record-keeping, financial reporting,

 

              9    computing fee obligations, and other procedures, the understanding of which

 

            10     the City deems necessary for understanding the meaning of reports and

 

            I I    records.

 

            1 2

                                  The City agrees to request access to only those books and

            13

 

            14     records, in exercising its rights under this section, which it deems reasonably

 

            15     necessary as part of a bona fide exercise of its authority under this Franchise or

 

            16     other applicable law.

 

            17            Section 4. CONSTRUCTION, OPERATION, MAINTENANCE, AND

 

            18

                   REPAIR.

            19

 

            20                    A. Site Plans/Location. Prior to installation of the bus shelter

 

            21     advertising, Pierce Transit shall, at its expense, submit to the City a listing of

 

            22     locations, a Site Plan for each location, and a typical Shelter design including

 

            23     the dimensions of available Advertising Space.

            24

                                  B. Approval.  Upon the City's receipt of the required documents,

            25

 

            26     the City shall, within 30 days from said receipt, review and approve or

 

                                                            -15-

                   ord8593.doc-CDB/tmh

 

YG 004 (11/89)

 

                 disapprove of the construction specified therein; provided, however, that

 

                 approval shall not be unreasonably withheld.  To the extent that the City

           2

 

           3     disapproves of all or any part of the construction, the City shall, within said

 

           4     30-day period, provide to Pierce Transit or its Agent a written explanation of the

 

           5     reasons for disapproval and suggested cures, if any. Pierce Transit shall then

 

           6     submit revised documents, which shall be subject to the same review and

           7

                 approval or disapproval procedures.  Pierce Transit shall not commence

           8

 

           9     construction at any site until the City has approved documents for such site.

 

          10                  C. Ent[y Upon Right-of-Way. Pierce Transit, its servants,

 

          I 1    employees, agents, contractors, and/or subcontractors shall have the right to

 

          12     enter upon the Right-of-Way for the purpose of constructing, operating, and

          13

                 maintaining the bus shelter advertising.

          14

 

          1 5                 D. Compliance with Laws, Rules, and Regulations. Pierce

 

          16     Transit shall construct, operate, maintain, and repair its bus shelter advertising

 

          1 7    in compliance with all federal, state, and local laws, ordinances, and

 

          18

                 departmental rules, regulations, and practices affecting such system, which

          19

 

          20     include, by way of example and not limitation, the obligation to operate,

 

          21     maintain, and repair in accordance with zoning codes, safety codes, and City

 

          22     construction standards. In addition, the construction, operation, and repair shall

 

          23     be performed in a manner consistent with industry standards. Pierce Transit

          24

                 shall exercise reasonable care in the performance of all its activities and shall

          25

 

     4,   26     use industry-accepted methods and devices for preventing failures and

 

    VX

                                                       -16-

                 ord8593.doc-CDB/tmh

 

 

XG 004 (11/89)

 

                   accidents that are likely to cause damage, injury, or nuisance to the public or to

 

                   property.

              2

 

              3                  E. Installation. All Facilities and installations must meet or

 

              4    exceed applicable specifications of the City and be in compliance with all

 

              5    existing federal, state, or local laws, ordinances, and regulations.

 

              6                  F. Inspection. The City shall have the right to verify, by

              7

                   inspection, that the location of the work and the materials used in construction

              8

 

              9    or operation of the Pierce Transit Facilities are in compliance with the plans, as

 

            10     approved by the City. The City shall further have the right to verify, by

 

            I I    inspection, that City Facilities relocated and/or constructed by Pierce Transit

 

            12     are to a standard acceptable to the City.

            1 3

                                G. Restoration of Right-of-Way.  Pierce Transit shall promptly

            14

 

            1 5    repair any and all Public Rights-of-Way and public or private property that is

 

            1 6    disturbed or damaged during the construction of its bus shelter advertising.

 

            1 7    Upon completion of the initial construction, Pierce Transit shall ensure that the

 

            18

                   unimproved Right-of-Way and all other public and private property that is

            1 9

 

            20     disturbed or damaged during construction is promptly returned to as good a

 

            21     condition as before the disturbance or damage occurred, or if to a lesser

 

            22     condition, then to the satisfaction of the City or the private property owners. In

 

            23     the event Pierce Transit does not comply with the foregoing requirements, the

            24

                   City may, upon reasonable advance notice to Pierce Transit, take action to

            25

 

            26

 

                   ord8593.doc-CDB/tmh

XG 004 (11/89)

                restore the Public Rights-of-Way or public property at Pierce Transit's sole cost

 

                and expense.

            2

 

            3               H. Dispute. In any dispute over the adequacy of a restoration,

 

            4   the Director of the Department of Public Works shall, in his or her sole

 

            5   discretion, make the final determination.

 

            6               1. Level of Operation/Maintenance. All Shelters shall be operated

            7

                and maintained in such a manner as to minimize disruption to other users of the

            8

 

            9   Public Rights-of-Way. All Shelters shall be maintained in a safe condition, in

 

          10    good repair and appearance.

 

          I I               J. Permissible Advertising. The City does not intend by

 

          12

                authorizing franchisee to license Advertising Space to create a public forum for

          13

 

          14    the receipt and dissemination of speech. Advertising will be located only upon

 

          15    Shelters and shall not be authorized to be placed in other locations within the

 

          16    Right-of-Way or within the Shelter Site. Pierce Transit shall be responsible for

 

          1 7   implementation and enforcement of policies for screening objectionable

          18

                Advertising.

          19

 

          20                K. Appointment of Operator. Pierce Transit may appoint an

 

          21    operator as Pierce Transit's agent to exercise some or all of Pierce Transit's

 

          22    rights under this Agreement, subject to the terms and conditions of this

 

          23    Agreement.

          24

                            L. Responsibilitv for Facilities.  The City shall have no

          25

 

          26    responsibility for inspecting, maintaining, servicing, or repairing any Shelters

 

                                                  -18-

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,EG 004 (11/89)

 

                   and shall not be responsible for the clearing or removal of trees, shrubs, plants,

 

                   ice, snow, or debris therefrom.

              2

 

              3          Section 5. PERMITS.

 

              4                 A. Permits and Licenses. Pierce Transit, at its sole cost and

 

              5    expense, shall: (1) secure and maintain in effect all federal, state, and local

 

              6    permits and licenses required for the construction, operation, and maintenance

              7

                   of the bus shelter advertising; and (2) indemnify the City against payment of the

              8

 

              9    costs thereof and against any fines or penalties that may be levied for failure to

 

            10     procure, or to comply with, such permits or licenses, as well as any remedial

 

                   costs incurred by the City in curing any such failures.

 

            1 2

                                B. Permits Reguired.  Except in cases of emergency repairs,

            13

 

            14     Pierce Transit's construction, operation, or repair of Shelters and Advertising

 

            15     shall not commence until all required permits have been properly filed for and

 

            16     obtained from the proper City officials and all required permits and associated

 

            17     fees paid. In case of emergency repairs, appropriate permits shall be obtained

 

            18

                   no later than the second business day following repairs.

            19

 

            20           Section 6. INSURANCE. Pierce Transit, as a self-insured entity, shall

 

            21     maintain, throughout the term of this Agreement, adequate self-funding levels

 

            22     to protect the City, its trustees, elected and appointed officers, agents, and

 

            23     employees against claims and damages that may arise as a result of the

            24

                   construction, installation, operation, maintenance, or repair of the Shelters and

            25

 

            26

 

                   ord8593.doc-CDB/tmh

LE'G 004 (11/89)

                 Ad ertising.  This obligation shall require Pierce Transit to maintain

 

                 self-insurance funding levels in no less than the following amounts and form:

             2

 

             3                A. Comprehensive general liability self-insurance funding levels

 

             4   to cover liability bodily injury and property damage. Exposures to be covered

 

             5   are: premises, operations, products/completed operations, and certain

 

             6   contracts. Coverage must be written on an occurrence basis, with the following

             7

                 limits of liability:

             8

 

             9                       1. Bodily lnmu[y

                                           i. Each Occurrence        $1,000,000

           10                              ii. Annual Aggregate      $3,000,000

 

           1 1                       2. Property Damage

 

           12                              i. Each Occurrence        $1,000,000

                                           ii. Annual Aggregate      $3,000,000

           13

                                     I Personal Iniurv

           14                              i. Annual Aggregate       $3,000,000

           15

                              B. Completed operations and product liability self-insurance shall

           16

 

           17    be maintained for two years after the termination of this Agreement (in the case

 

                 of the Pierce Transit or operator) or completion of the work for the Pierce

           18

 

           19    Transit or operator (in the case of a contractor or subcontractor).

 

           20                 C. Property damage liability self-insurance shall include coverage

           21

                 for the following hazards: X - explosion; C - collapse; U - underground.

           22

 

           23                 D. Workers'compensation insurance shall be maintained during

 

           24    the life of this contract to comply with statutory limits for all employees and, in

 

           25    the case any work is sublet, Pierce Transit shall require its contractors and

 

           26

 

                                                      -20-

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                 subcontractors to similarly provide workers'compensation insurance for all the

 

             1

 

             2   latter's employees, unless such employees are covered by the protection

 

 

             3   afforded by Pierce Transit. Pierce Transit shall also maintain, during the life of

 

 

             4   this policy, employer's liability insurance. The following minimum limits must be

 

             5   maintained:

 

             6                 Workers' Compensation:          Statutory

             7                 Employer's Liability:           $500,000 per occurrence

 

             8                 E. Comprehensive auto liability coverage shall include owned,

 

             9   hired, and non-owned vehicles.

 

           10

 

                                     1. Bodily lneu!y

           11                              i. Each Occurrence        $1,000,000

 

           12                              ii. Annual Aggregate      $3,000,000

 

           13                        2. Property Damage

 

                                           i. Each Occurrence        $1,000,000

           14                              ii. Annual Aggregate      $3,000,000

 

           15

                               F. If Pierce Transit, its contractors, or subcontractors do not have

           16

 

           17    the required insurance, the City may order such entities to stop operations until

 

 

           18    the insurance is obtained and approved.

 

           19                  G. Certificates of insurance, reflecting evidence of the required

 

           20    insurance, and naming the City as an additional insured under its insurance or

 

           21

                 self-insurance program, shall be filed with the City's Risk Manager.  The

           22

 

                 certificate shall be filed with the acceptance of the Franchise, and annually

           23

 

           24    thereafter, and as provided in Sections H and I below.

 

           25

 

           26

 

                                                     _21-

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,[;,'G 004 (11/89)

 

                               H. Minimum Requirements.  The parties agree that the insurance

 

                  coverage required herein shall:

             2

 

             3                        1. Provide coverage on an occurrence basis;

 

             4                        2. Cover any and all costs including defense costs, losses

 

             5    and damages resulting from any personal injury and/or death (including

 

             6    coverage under the Federal Employers Liability Act), and/or property damage;

             7

                                      3. Include blanket contractual coverage, including

             8

 

             9    coverage for written contracts and specific coverage for the indemnity

 

           10     provisions set forth in this Agreement, and completed operations and products

 

           I I    liability coverage; provided that, there shall not be an exclusion for liability not

 

           12     contracted for;

           13

                                      4. Have no exclusion for incidents occurring within 25 feet,

           14

 

           15     or any distance, from a railroad track, or on, over, or under a railroad track;

 

           16                         5. Have an aggregate limit location endorsement for each

 

           17     construction location;

 

           18                         6. Commence and be in force and effect before any work

           19

                  is done under this Agreement;

           20

 

           21                         7. Be maintained in place until all Shelters have been

 

           22     removed from the Public Rights-of-Way and for six years thereafter;

 

           23                         8. Have no non-standard exclusions unless approved of

           24

                  by the City Risk Manager;

           25

 

           26

 

                                                        -22-

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,EG 004 (11/89)

 

                                      9. Name the City as an additional insured without

 

                  limitation, pursuant to an endorsement approved of by the City's Risk Manager;

             2

 

             3                        1 0. Be issued by a financially sound insurer that is

 

             4    authorized to do business in the state of Washington with a financial rating no

 

             5    less than an "A XII" in the latest edition of "Best's Key Rating Guide," published

 

             6    by A.M. Best Company;

             7

                                      1 1. Be endorsed to state that coverage under the policy

             8

 

             9    shall not be suspended, voided, canceled, or amended except after 60 days

 

           10     prior written notice of such has been given to the City;

 

           I 1                        12. Include a waiver of subrogation rights to the extent that

 

           12     any liability for costs, losses, and damages resulting from any personal injury,

           13

                  death, and/or property damage may be covered by the proceeds of such

           14

 

           15     insurance policies;

 

           16                         13. Include an endorsement that such policy is primary

 

           17     and noncontributing.

 

           18

                               1. The certificates shall contain a provision that coverage afforded

           19

 

           20     under these policies will not be canceled until at least 30 days' prior written

 

           21     notice has been given to the City.

 

           22                  J. In the event that the insurance certificate provided indicates

 

           23     that the insurance shall terminate or lapse during the period of the Right-of-Way

           24

                  then, in that event, Pierce Transit shall furnish, at least 30 days prior to the

           25

 

                  expiration of the date of such insurance, a renewed certificate of insurance as

           26

 

                                                       -23-

                  ord8593.doc-CDB/tmh

 

,EG 004 (11/89)

 

                   proof that equal and like coverage has been or will be obtained prior to any

 

                   such lapse or termination during the balance of the period of the Right-of-Way.

              2

 

              3            Section 7. LIABILITY; INDEMNIFICATION.

 

              4                   A. Pierce Transit hereby agrees to indemnify, defend, and hold

 

              5    the City harmless from any and all claims, demands, suits, actions, damages,

 

              6    recoveries, judgments, costs, or expenses arising or growing out of or in

              7

 

              8    connection with or resulting from, either directly or indirectly, the construction,

 

              9    installation, maintenance, operation, repair, removal, occupancy, use, and

 

            10     ownership of the Shelters by Pierce Transit, its Agents or Authorized Third

 

            I I    Parties.

 

            1 2

                                  B. Pierce Transit hereby releases the City from, and agrees to

            13

 

            14     indemnify, defend, protect, and save the City harmless from and against any

 

            15     and all claims, suits, judgments, liabilities, defense costs, and expenses

 

            1 6    (including, but not limited to, attorneys'fees) arising out of any loss of and/or

 

            1 7    damage to the real or tangible personal property of the City, and any loss of

 

            18

                   and/or damage to the property of any Third Parties or Pierce Transit; any loss

            1 9

 

            20     and/or damage on account of injury to or death of any persons whomsoever

 

            21     (including employees and agents of the parties hereto and all other persons)

 

            22     caused by or growing out of the presence of Pierce Transit or its employees,

 

            23     Agents, Authorized Third Parties, servants, contractors, or subcontractors in,

            24

                   upon, or along the Right-of-Way or the plan, design, construction, and

            25

                   installation, or subsequent operations, maintenance, repair, reinstallation,

        A 26

 

                                                            -24-

                   ord8593.doc-CDB/tmh

 

YG 004 (11/89)

 

                  replacement, relocation, or removal of Facilities or any part thereof; service

 

                  interruption, cessation, or unreliability of the Transit Facilities, libel, slander,

              2

 

              3   infringement of copyright, or unauthorized use of any trademark, trade name, or

 

              4   service mark arising out of the material, data, information, or other content

 

              5   transmitted or received over the Facilities, unless such claims, suits, judgments,

 

              6   or liabilities arise from the sole actions or inaction of the City, its employees,

              7

                  servants, agents, contractors, or subcontractors.

              8

 

              9                 C. The parties hereby agree that no damages shall be

 

            10    recoverable from one another because of any dispossession that results from

 

            1 1   any failure of or defect in the City's title or the rights granted herein by the City

 

            12

                  to Pierce Transit.  The City will cooperate with Pierce Transit's actions to rectify

            13

 

            14    any title defect and shall stipulate to judgment upon demand with regard to

 

            15    Pierce Transit's title.

 

            16                  D. The party in whose favor an indemnification runs, pursuant to

 

            17    any of Sections 7(A), 7(B), and 7(C) (the "Protected Party"), shall give the other

 

            18

                  party (the "Indemnifying Party") prompt notice of any claims or actions of which

            19

 

            20    it is aware against the Protected Party under this Agreement. The Indemnifying

 

            21    Party shall promptly assume responsibility for the claim or undertake the

 

            22    defense of any litigation on behalf of the Protected Party, its agents,

 

            23    contractors, and employees; hold the Protected Party harmless for any

            24

                  expense associated therewith; and promptly pay any settlement or judgment

            25

 

            26    that may be agreed to by the parties or entered by a court. The Protected

 

                                                         -25-

                  ord8593.doc-CDB/tmh

 

YG 004 (11/89)

 

                 Party shall cooperate fully with the Indemnifying Party in the defense of any

 

                 such claim or action.  The Protected Party shall not settle any such claim or

            2

 

            3    action without the prior written consent of the Indemnifying Party, which

 

            4    consent shall not be unreasonably withheld. In the event that the Indemnifying

 

            5    Party does not assume and meet its obligations under Section 7(D) promptly

 

            6    upon receiving written notice from the Protected Party, the Protected Party

            7

                 may, at is option, make any expenditures or incur any obligations for the

            8

 

            9    payment of money in connection with or arising out of the matters referred to in

 

          10     Sections 7(A), 7(B), and 7(C), including, but not limited to, attorney's fees.

 

          I I    Such sums paid or obligations incurred shall be deemed to be additional

 

          12     obligations of the Indemnifying Party under this Agreement and shall be paid by

          1 3

                 the Indemnifying Party upon the rendering of a statement to the Indemnifying

          14

 

          1 5    Party therefor.

 

          16           Section 8. LIENS.

 

          17                  A. The Right-of-Way is not subject to a claim of lien. In the event

 

          18     that any City property becomes subject to any claims for mechanics', artisans'

          19

 

          20     or materialmen's liens, or other encumbrances chargeable to or through Pierce

 

          21     Transit which Pierce Transit does not contest in good faith, Pierce Transit shall

 

          22     promptly, and in any event within 30 days, cause such lien claim or

 

          23     encumbrance to be discharged or released of record (by payment, posting of

          24

                 bond, court deposit, or other means), without cost to City, and shall indemnify

          25

 

          26     City against all costs and expenses (including attorneys'fees) incurred in

 

                                                       -26-

                 ord8593.doc-CDB/tmh

 

004 1 1/89)

 

                  dis harging and releasing such claim of lien or encumbrance.  If any such claim

 

                  or encumbrance is not so discharged and released, City may pay or secure the

              2

 

              3   release or discharge thereof at the expense of Pierce Transit after first giving

 

              4   Pierce Transit five business days' advance notice of its intention to do so. City

 

              5   shall use its reasonable best efforts to keep Pierce Transit's Facilities free of all

 

              6   liens that may adversely affect the bus shelter advertising.

              7

                                B. Nothing herein shall preclude Pierce Transit's or City's contest

              8

 

              9   of a claim for lien or other encumbrance chargeable to or through Pierce Transit

 

            10    or City, or of a contract or action upon which the same arose.

 

            I 1                 C. Nothing in this Agreement shall be deemed to give, and City

 

            1 2

                  hereby expressly waives, any claim of ownership in and to any part or the

            13

 

            14    whole of the Pierce Transit Facilities, except as may be otherwise provided

 

            15    herein.

 

            1 6          Section 9. TERM; TERMINATION.

 

            1 7                 A. This Agreement shall be effective as of the date first

 

            18

                  hereinabove written and, unless sooner terminated pursuant to the terms

            19

 

            20    hereof, shall remain in effect for 126 months from such date ("Initial Term").

 

            21                  B. Pierce Transit shall have the option to seek renewal of this

 

            22    Agreement for an additional ten-year term upon the same terms and conditions;

 

            23    provided that, renewal is subject to Council approval, which shall not be

            24

                  unlawfully withheld, and requirements of the City Charter.  Notice of Pierce

            25

 

            26    Transit's intent to exercise any renewal option shall be given to City no sooner

 

                                                        -27-

                  0rd8593.doc-CDB/tmh

 

,EG 004 (11/89)

 

                  than two years and no later than 180 days prior to the expiration of the initial

 

                  term.  Time shall not be "of the essence" with respect to the notice provisions in

             2

 

             3    this subsection.

 

             4                 C. Upon termination of this Agreement, Pierce Transit agrees to

 

             5    prepare, execute, and deliver to City all documentation necessary to evidence

 

             6    termination of this Agreement or portion thereof so terminated. No such

             7

                  termination, however, shall relieve the parties hereto of obligations accrued and

             8

 

             9    unsatisfied at such termination.

 

            10                 D. Any right of the City to acquire Shelters as provided for by the

 

            11    City Charter shall be subject to and exercised in accordance with applicable

 

            12    federal and state law.

            13

                        Section 10.  REGULATORY PROVISIONS.

            14

 

            15                 A. Remedies. The City has the right to exercise any and all of

 

            16    the following remedies, singly or in combination, in the event Pierce Transit

 

            17    violates any provision of this Agreement:

 

            18

                                      1. Commence an action at law for monetary damages;

            19

 

            20                        2. Commence an action for equitable or other relief;

 

            21                        3. Seek specific performance of any provision that

 

            22    reasonably lends itself to such remedy.

 

            23                 B. Cumulative Remedies. In determining which remedy or

            24

                  remedies for Pierce Transit's violation are appropriate, a court may take into

            25

                  consideration the nature and extent of the violation, the remedy needed to

            26

 

                                                        -28-

                  ord8593.doc-CDB/tmh

 

XG 004 (11/89)

 

                   prevent such violations in the future, whether Pierce Transit has a history of

 

                   previous violations of the same or similar kind, and such other considerations

              2

 

              3    as are appropriate under the circumstances. Remedies are cumulative; the

 

              4    exercise of one shall not foreclose the exercise of others.

 

              5                  C. Failure to Enforce. Pierce Transit shall not be relieved of any

 

              6    of its obligations to comply promptly with any provision of this Agreement by

              7

                   reason of any failure of the City to enforce prompt compliance, and the City's

              8

 

              9    failure to enforce shall not constitute a waiver of rights or acquiescence in

 

            10     Pierce Transit's conduct.

 

            1 1                  D. Alternative Remedies. No provision of this Agreement shall be

 

            12     deemed to bar the right of the City to seek or obtain judicial relief from a

            13

                   violation of any provision of the ordinance or any rule, regulation, requirement,

            14

 

            15     or directive promulgated thereunder. Neither the existence of other remedies

 

            16     identified in this Franchise nor the exercise thereof shall be deemed to bar or

 

            17     otherwise limit the right of the City to recover monetary damages for such

 

            18     violation by Pierce Transit, or to seek and obtain judicial enforcement of Pierce

            19

 

            20     Transit's obligations by means of specific performance, injunctive relief or

 

            21     mandate, or any other judicial remedy at law or in equity.

 

            22           Section 1 1. REVOCATION. In addition to any rights set out elsewhere

 

            23     in this Franchise or the City Charter, the City reserves the right to declare a

 

            24     forfeiture or otherwise revoke the Franchise, and all rights and privileges

            25

                   pertaining thereto, in the event that:

            26

 

                                                          -29-

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LEG 004 (11/89)

 

                      A. Pierce Transit is in substantial non-compliance with the

 

       Franchise;

  2

 

  3                   B. Pierce Transit is found to have engaged in any actual or

 

  4    attempted fraud or deceit upon the City, persons, or customers;

 

  5                   C. Pierce Transit fails to obtain and maintain any permit required

 

  6    by any federal or state regulatory body or by the City, relating to the

  7

       construction, repair, and operation of the Facilities in the Right-of-Way; or

  8

 

  9                   D. At any time during the term of the Franchise, Pierce Transit

 

10     fails to provide and maintain the insurance required by this Franchise or fails to

 

1 1    satisfy the indemnity set out in this Franchise).

 

1 2           Before the Franchise is revoked, Pierce Transit shall be given notice and

13

       opportunity to cure (except in those cases where notice and opportunity to cure

14

 

15     are not required.

 

16            If, after notice and opportunity to cure, the City finds that there has been

 

17     an act or omission that would justify revocation or forfeiture of the Franchise,

18     the City may make an appropriate reduction in the remaining term of the

19

 

20     Franchise or revoke the Franchise. However, the Franchise may only be

 

21     revoked or forfeited if: (1) Pierce Transit was given written notice of the default;

 

22     (2) Pierce Transit was given 30 days to cure the default; and (3) Pierce Transit

 

23     failed to cure the default, or to propose a schedule for curing the default

24

       acceptable to the City when it is impossible to cure the default in 30 days.  No

25

 

26

 

                                               _30-

       ord8593.doc-CDB/tmh

 

       opportunity to cure is required for repeated violations and fraud shall be

 

       deemed incurable.

  2

 

  3           Notwithstanding the foregoing, the City may declare a Franchise

 

  4    forfeited or revoked without opportunity to cure when Pierce Transit:

 

  5    (1) transfers without the prior consent of the City; (2) fails to pay the Franchise

 

  6    fees owed hereunder, if any; or (3) defrauds or attempts to defraud the City or

  7

       Pierce Transit's customers.  However, Pierce Transit shall have the right to

  8

 

  9    receive 30 days' prior notice of an intent to declare a Franchise forfeited and

 

10     shall have the opportunity to show cause before the Director of Public Works

 

11     why the Franchise should not be forfeited or revoked.

 

12            Section 12. RIGHT TO REQUIRE REMOVAL OF PROPERTY/RIGHT

13

       TO REMOVE PROPERTY.

14

 

15                   A. Upon termination of this Agreement, Pierce Transit may be

 

16     required to remove Shelters from any Public Right-of-Way, and restore such

 

17     Right-of-Way to its same or better condition as existed just prior to such

 

18

       removal, subject to any rights Pierce Transit may have to abandon property in

19

 

20     place. If Pierce Transit fails to remove property that the City requires it to

 

21     remove, the City may perform the work and collect the cost thereof from Pierce

 

22     Transit after removal.

 

23                   B. To the extent any portion of the Shelters in the Rights-of-Way

 

24

       or on any other public property is not removed by Pierce Transit within three

25

 

26     months of the later of the end of the term of this Agreement or any continuation

 

                                              -31-

       ord8593.doc-CDB/tmh

 

      period, the property will be deemed abandoned and shall become the property

 

      of the City if the City wishes to own it.  Provided that, in no case shall Pierce

 2

 

 3    Transit be provided less than three months to remove its Facilities, measured

 

 4    from the date Pierce Transit is ordered to remove its Facilities.

 

 5                  C. Any order issued, pursuant to Section 12.A, to remove the

 

 6    Shelters in whole or in part shall be sent by registered or certified mail to Pierce

 7

      Transit not later than three months following the date of termination of this

 8

 

 9    Agreement, except as may be otherwise agreed to by the parties. Removal

 

10    shall be completed (except with respect to property that Pierce Transit is

 

1 1   permitted or required to abandon in place) not later than three months following

 

12    the date of notification to remove the Facilities.

13

             Section 13.  COVENANTS AND WARRANTIES.

14

 

15                 A. By execution of this Agreement, City warrants:

 

16                         1. That City has the full right and authority to enter into

 

17    and perform this Agreement and any permits which may be granted in

18    accordance with the terms hereof, and that by entering into or performing this

19

 

20    Agreement the City is not in violation of its Charter or Bylaws, or any law,

 

21    regulation, or agreement by which it is bound or to which it is bound or to which

 

22    it is subject; it being understood, however, that the covenant and warranty

 

23    contained in this section does not constitute a warranty, expressed or implied,

24

      by City, of the right or rights granted by City to Pierce Transit hereunder; and

25

 

26

 

                                            -32-

      ord8593.doc-CDB/tmh

 

                                       2. That the execution, delivery, and performance of this

 

                  Agreement by City has been duly authorized by all requisite corporate action,

            2

 

            3     that the signatories for City hereto are authorized to sign this Agreement, and

 

            4     that, upon approval by City, the joinder or consent of any other party, including

 

            5     a court or trustee or referee, is not necessary to make valid and effective the

 

            6     execution, delivery, and performance of this Agreement.

            7

                                B. By execution of this Agreement, Pierce Transit warrants:

            8

 

            9                           1. That Pierce Transit has full right and authority to enter

 

            10    into and perform this Agreement in accordance with the terms hereof, and by

 

            I I   entering into or performing this Agreement, Pierce Transit is not in violation of

 

            12    its charter or bylaws, or any law, regulation or agreement by which it is bound

            13

                  or to which it is subject; and

            14

 

            15                         2. That the execution, delivery, and performance of this

 

            16    Agreement by Pierce Transit has been duly authorized by all requisite Board

 

            17    action, that the signatories for Pierce Transit hereto are authorized to sign this

            18    Agreement, and that the joinder or consent of any other party, including a court

            19

                  or trustee or referee, is not necessary to make valid and effective the execution,

            20

 

            21    delivery and performance of this Agreement.

 

            22           Section 14. RECORDINGS, TAXES, AND OTHER CHARGES.

 

            23                  A. Pierce Transit shall pay all transfer taxes, documentary

 

            24

                  stamps, recording costs or fees, or any similar expense in connection with the

            25

 

            26    recording or filing of any permits which may be granted hereunder. Pierce

 

                                                          -33-

                  ord8593.doc-CDB/tmh

 

I,P.fl holl 11 I /pal

 

                  Transit further agrees that if it is determined by any federal, state, or local

 

                  governmental authority that the sale, acquisition, license, grant, transfer, or

              2

 

              3   disposition of any part or portion of the bus shelter advertising or rights herein

 

              4   described requires the payment of any tax, levy, excise, assessment, or

 

              5   charges (including, without limitation, property, sales, or use tax) under any

 

              6   statute, regulation, or rule, Pierce Transit shall pay the same, plus any penalty

              7

                  and/or interest thereon, directly to said taxing authority and shall hold City

              8

 

              9   harmless therefrom. Pierce Transit shall pay all taxes, levies, excises,

 

            10    assessments, or charges, including any penalties and/or interest thereon,

 

            I I   levied or assessed on the Transit Facilities, or on account of their existence or

 

            12    use (including increases thereof attributable to such existence or use, and

            1 3

                  excluding taxes based on the income of City), and shall indemnify City against

            1 4

 

            15    payment thereof. Pierce Transit shall have the right to claim, and City shall

 

            16    reasonably cooperate with Pierce Transit in the prosecution of any such claim,

 

            17    for refund, rebate, reduction, or abatement of such tax(es).

 

            18

                                B. City may pay any tax, levy, excise, assessment, or charge,

            19

                  plus any penalty and/or interest thereon, imposed upon Pierce Transit for which

            20

 

            21    Pierce Transit is obligated pursuant to this section, if Pierce Transit does not

 

            22    pay such tax, levy excise, assessment, or charge within 30 days after it

 

            23    becomes due. Pierce Transit shall reimburse the City for any such payment

            24

                  made, pursuant to the previous sentence, plus interest at the rate of 8 percent

            25

                  per annum.

            26

 

 

                  ord8593.doc-CDB/tmh                    -34-

 

 

,[,',G 004 (11/89)

 

                                C. City and Pierce Transit will cooperate in good faith to resolve

 

                  any tax dispute that arises under this Agreement, which cooperation will

              2

 

              3   include, but not be limited to, sharing of documents and cooperation of legal

 

              4   counsel.

 

              5          Section 15. ASSIGNABILITY; BENEFICIARY.

 

              6

                               A. This Agreement shall be binding upon and inure to the benefit

              7

 

              8   of the parties hereto and their respective successors or assigns. Except as

 

              9   otherwise provided herein, no assignment hereof or sublease shall be valid for

 

            10    any purpose without the prior written consent of the other party, and any

 

            I 1   attempt by one party to assign or license the rights or obligations hereunder

 

            12

                  without prior written consent will give the other party the right, at its written

            13

 

            14    election, immediately to terminate this Agreement or take any other lesser

 

            15    action with respect thereto. The above requirement for consent shall not apply

 

            16    to: (1) any disposition of all or substantially all of the assets of a party; (2) any

 

            17    corporate merger, consolidation or reorganization, whether voluntary or

            18

                  involuntary; (3) a sublease or assignment of this Agreement (in whole or in part)

            1 9

 

            20    to a wholly-owned subsidiary, affiliate, or parent company; (4) a license of the

 

            21    use of Advertising Space for commercial advertising as authorized pursuant to

 

            22    Section 2(H) of this Franchise; or (5) a sale, lease, or other conveyance by City;

 

            23    provided, however, that no sublease or assignment under Subsections (2) or

            24

                  (3) shall be permitted to a company not under common control with Pierce

            25

 

            26

 

                                                        -35-

                  ord8593.doc-CDB/tmh

 

 

,EG 004 (11/89)

 

              Transit; and, provided further, that no unconsented assignment shall relieve

 

              Pierce Transit of its obligations and liabilities under this Agreement.

          2

 

          3             B-r Either party hereto may assign any monetary receivables due

 

          4   them under this Agreement; provided however, such assignment shall not

 

          5   relieve the assignor of any of its rights or obligations under this Agreement.

 

          6             C. Pierce Transit acknowledges and agrees that City may

          7

              designate, in writing, a designee to: (1) receive information (including

          8

 

          9   information designated or identified as confidential) and notices under this

 

         10   Agreement; and (2) provide certain approvals or consents required from City

 

         I I  under this Agreement. In the event of such designation, Pierce Transit may

 

         12

              rely on approvals or consents by such designee on behalf of City as fully as if

         13

 

         14   such actions were performed by the designator itself.

 

 

         1 5       Section 16. NOTICES.

 

         1 6            A. Unless otherwise provided herein, all notices and

 

         1 7  communications concerning this Agreement, shall be in writing and addressed

 

         18

              to (one copy each):

         19

                   PIERCE TRANSIT AUTHORITY

         20        Attention: Don S. Monroe

                   PO Box 9970

         21        Tacoma, WA 98499

 

         22   and to:

 

         23        CITY OF TACOMA                 CITY OF TACOMA

         24        Attention: City Clerk          Attention: Leslie Rowen

                   747 Market Street, Room 220    747 Market Street, Room 220

         25        Tacoma, WA 98402               Tacoma, WA 98402

 

         26   or at such other addresses as may be designated in writing by the other party.

 

       \1                                  -36-

              ord8593.doc-CDB1tmh

 

,E'G 004 (11/89)

 

                                B. Unless otherwise provided herein, notices shall be sent by

 

                  registered or certified United States Mail, or other verifiable physical or

              2

 

              3   electronic transmission, and shall be deemed served or delivered to addressee,

 

              4   or its office, upon the date of actual receipt (if such acknowledgment, or other

 

              5   means), return receipt acknowledgment, or, if postal claim notice is given, on

 

              6   the date of its return marked "unclaimed"; provided, however, that upon receipt

              7

                  of a returned notice marked "unclaimed," the sending party shall make

              8

 

              9   reasonable effort to contact and notify the other party by telephone.

 

            10           Section 17. MISCELLANEOUS.

 

            I I                 A. This Agreement shall survive delivery and/or recordation of

            12

                  each permit which may be granted hereunder.

            13

 

            14                  B. Each party shall be responsible for its own costs, including

 

            15    legal fees, incurred in negotiating or finalizing this Agreement.

 

            16                  C. The parties shall not be deemed in default with provisions of

 

            17    this Agreement where performance was rendered impossible by war or riots,

            18

                  civil disturbances, floods, or other natural catastrophes beyond the parties'

            19

 

            20    control; the unforeseeable unavailability of labor or materials; labor stoppages

 

            21    or slow downs or power outages exceeding back-up power supplies. This

 

            22    Agreement shall not be revoked or the parties penalized for such

 

            23    noncompliance; provided, that the parties take immediate and diligent steps to

            24

                  bring itself back into compliance and to comply as soon as practicable under

            25

 

            26    the circumstances without unduly endangering the health, safety, and integrity

 

                                                          -37-

                  ord8593.doc-CDB/tmh

 

 

IXG 004 (11/89)

 

                   of the parties Iemployees or property, or the health, safety, and integrity of the

 

                   public, Public Rights-of-Way, public property, or private property.

              2

 

              3                   D. This Agreement may be amended only by a written instrument

 

              4    executed by each of the parties hereto. No failure to exercise and no delay in

 

              5    exercising, on the part of any party hereto, any rights, power, or privilege

 

              6    hereunder shall operate as a waiver hereof and no single or partial exercise of

              7

                   any other rights, power, or privilege, except as expressly provided herein.

              8

 

              9                   E. This Agreement constitutes the entire agreement of the parties

 

             10    with respect to the subject matters hereof, and supersedes any and all prior

 

             1 1   negotiations (oral and written), understandings and agreements with respect

 

             1 2

                   hereto.

             1 3

 

             14                   F. Section headings are intended as information only, and shall

 

             1 5   not be construed with the substance of the section they caption.

 

             16                   G. In construction of this Agreement, words used in the singular

 

             1 7   shall include the plural and the plural the singular, and "or" is used in the

             18

                   inclusive sense, in all cases where such meanings would be appropriate.

             19

 

             20                   H. This Agreement may be executed in several counterparts,

 

             21    each of which shall be deemed an original, and all counterparts together shall

 

             22    constitute but one and the same instrument.

 

             23                   1. No Recourse. Without limiting such immunities as the City or

             24

                   other persons may have under applicable law, Pierce Transit shall have no

             25

 

             26    monetary recourse whatsoever against the City or its officials, boards,

 

      41                                                    -38-

                   ord8593.doc-CDB/tmh

 

 

LEG 004 (11/89)

 

                  commissions, agents, or employees for any loss or damage arising out of the

 

                  City's exercising its authority, pursuant to this Agreement or other applicable

            2

 

            3     law; provided that, this section shall not apply in the event the Franchise is

 

            4     repealed, pursuant to Article VIII, Section 8.1 (a) of the Tacoma City Charter.

 

            5                  J. Notwithstanding Section 17.1 above, Pierce Transit shall

 

            6     maintain all of its rights regarding the enforcement of this Agreement at law and

            7

                  in equity, including, without limitation, the recovery of monetary damages

            8

 

            9     arising from and related to the City's negligence in performance of this

 

            10    Agreement or the City's breach of this Agreement.

 

            1 1          Section 18. LEGAL FORUM. This Agreement shall be interpreted,

 

            12    construed and enforced in accordance with the laws of the state of Washington.

            1 3

                  Venue for any action under this Agreement shall be Pierce County,

            14

 

            15    Washington.

 

            16           Section 19. INTERPRETATION. This Agreement is executed by all

 

            17    parties under current interpretations of applicable federal, state, or local statute,

            18

                  ordinance, law, or regulation.

            19

                         Section 20.  SEVERABILITY.

            20

 

            21                 A. In case any term of this Agreement shall be held invalid,

 

            22    illegal, or unenforceable in whole or in part, neither the validity of the remaining

 

            23    part of such term nor the validity of the remaining terms of this Agreement shall

            24

                  in any way be affected thereby.

            25

 

            26

 

                                                         -39-

                  ord8593.doc-CDB/tmh

 

 

LEG 004 (11/89)

 

                               B. Notwithstanding the foregoing', the material provisions of this

 

                  Agreement are not severable.  In the event that a court, agency, or legislature

             2

 

             3    of competent jurisdiction acts or declares any nonmaterial provision of this

 

             4    Agreement is unenforceable according to its terms, or otherwise void, said

 

             5    provision shall be considered a separate, distinct, and independent part of this

 

             6    Agreement, and such holding shall not affect the validity and enforceability of all

             7

                  other provisions hereof.  In the event that a court, agency, or legislature of

             8

 

             9    competent jurisdiction acts so that, or declares that, any material provision of

 

           10     this Agreement is unenforceable according to its terms, or is otherwise void, the

 

           1 1    City and Pierce Transit agree to immediately enter into negotiations in good

 

           1 2    faith to restore the relative burdens and benefits of this Agreement, consistent

           13

                  with applicable law.  If the City and Pierce Transit are unable to agree to a

           14

 

           1 5    modification of this Agreement within 60 days, either party may resort to

 

           16     litigation. Pierce Transit and the City agree to participate in up to 16 hours of

 

           1 7    negotiation during the 60-day period.

 

           18

                                C. Notwithstanding the foregoing, if either Pierce Transit or the

           1 9

                  City believes a provision is not material, it must commence an action

           20

 

           21     challenging the materiality within 14 days of a request by the other that it enter

 

           22     into negotiations. The obligation to negotiate is not tolled, and the City and

 

           23     Pierce Transit must discharge their negotiation responsibility notwithstanding

           24

                  the dispute as to materiality.  If there is a dispute as to materiality, the remedies

           25

 

           26     provided for in the proceeding paragraph shall be additive, not alternative. The

 

      A%J

     JF@ V                                               -40-

                  ord8593.doc-CDB/tmh

 

 

,EG 004 (11/89)

 

                   remedies provided for herein do not prevent the City or Pierce Transit from

 

                   contending that a particular provision is enforceable, or foreclose any remedies

              2

 

              3    if a provision is enforceable.

 

              4          Section 21. EXECUTION. Pierce Transit shall execute and return to the

 

              5    City three original countersigned copies of this ordinance and a signed

 

              6    acceptance of this Agreement granted hereunder within 30 days after the date

              7

                   of passage of the ordinance by the City Council.  The acceptance shall be in a

              8

 

              9    form acceptable to the City Attorney, and in accepting this Agreement, Pierce

 

            40     Transit warrants that it has carefully read the terms and conditions of this

 

            1 1    Agreement and unconditionally accepts all of the terms and conditions of this

 

            1 2    Agreement and agrees to abide by the same and acknowledges that it has

            1 3

                   relied upon its own investigation of all relevant facts, that it has had the

            14

 

            1 5    assistance of counsel, that it was not induced to accept this Agreement, that

 

            1 6    this Agreement represents the entire agreement between Pierce Transit and

 

            1 7    the City. The countersigned ordinance and acceptance shall be returned to the

 

            18

                   City accompanied by: (1) evidence of insurance; and (2) a payment for

            19

                   publication costs.  The rights granted herein shall not become effective until all

            20

 

            21

 

            22

 

            23

 

            24

 

            25

 

            26

 

                                                                                                          A

                                                       -41-

                 ord8593.doc-CDB/tmh

 

LEG 004 (11/89)

 

        of the foregoing is received in acceptable form.,

 

             JUL 1 7 2001

        Passed

 

      2

 

 

      3

 

 

      4                         A

                          Mayor

      5 Attest:

 

      6

 

 

      7

 

        City Clerk

 

      8

 

 

      9 Approved as to form and legality

 

 

     10

 

 

     1 1Assistant City Attorney

 

     12

 

 

     13

 

 

     14

 

 

     15

 

 

     16

 

 

     17

 

 

     18

 

 

     19

 

 

     20

 

 

     21

 

 

     22

 

 

     23

 

 

     24

 

 

     25

 

 

     26

 

   A,                    -42-

        ord8593.dOc-CDB/tmh

 

 

 

AG 004 (11/89)

 

                                     PIERCE TRANSIT AUTHORITY

                                  ACCEPTANCE OF CITY FRANCHISE

 

            2   Ordinance No.,            effective                       2001.

 

                                                                               IERCE

            3

                                                   am th

 

            4

                TRANSIT AUTHORITY and am the authorized representative to accept the

            5

 

            6   above-referenced City Franchise ordinance on behalf of PIERCE TRANSIT

 

            7   AUTHORITY.

 

            8         1 certify that this Franchise and all terms and conditions thereof are

 

            9   accepted by PIERCE TRANSIT AUTHORITY, without qualification or

          10

                reservation.

 

 

          12          DATED this      day of                       2001.

 

          13                                  PIERC       NSIT A HORITY

 

          1 4

 

          15                                  By:

                                          V)PIts:

 

          16

                                              Witness:

          17

 

          18

 

          19

 

          20

 

          21

 

          22

 

          23

 

          24

 

          25

 

          26

 

                                                  -43-

               ord8593.doc-CDB/tmh

 

LEG 004 (11/89)

 

                                                                                              CITY CLERK USE

 

                            REQUEST FOR ORDINANCE                                   Request   aza@

 

                                                                  p 7 r, r- I k/ F n          _26829

                                                                                   OFdinance M

                                     OR RESOLUTION

  Tacoma

 

                                                                                   Resolution M

 

                                                             LU                -:30

                                                               A.MY 18     Pi@i %2

 

  1.  DATE: May 18, 2001

 

  2.  REQUESTING DEPARTMENT/DIVISION/PROGRAM         3. CONTACTPEiWRIDEquestions):        PHONEXXTENSION

 

      Public Works/Engineering                          Alan M. Tebaldi, P.E.             5272

 

  4.  PREPARATION OF AN ORDINANCE IS REQUESTED FOR THE CITY COUNCIL MEETING OF TUESDAY JUNE)e,44*

 

 

  5.  SUMMARY TITLE/RECOMMENDATION: (A concise sentence, as it will appear on the Council Agenda)

 

 

      Granting a non-exclusive franchise to Pierce Transit for bus shelter advertising in City right-of-way.

 

 

 

  6.  BACKGROUND INFORMATION/GENERAL DISCUSSION: (Why is this request necessary? Are there legal

 

      requirements?  What are the viable alternatives?  Who has been involved in the process?)

 

 

      Pierce Transit requested permission from the City to contract for advertising on bus shelters in City right-

 

      of-way.  Two pilot locations have been in place for over a year with no negative comments received from

 

      the public.  The Pierce Transit Board and City Council have been informed about the proposal and are

 

      both enthusiastic to move forward with the franchise.  The franchise will provide for constructing bus

 

      shelters at no cost to the City or Pierce Transit while also providing revenue to the City, Pierce Transit

 

      and potentially to business districts.

 

 

 

  7. FINANCIAL IMPACT: (Future impact on the budget.)

 

         None

 

 

 

  8. LIST ALL MATERIAL AVAILABLE AS BACKUP INFORMATION FOR THE REQUEST AND INDICATE WHERE FILED:

                   Source Documents/Backup Material                      Location of Document

 

                    Draft Franchise                                      City Attorney's Office

 

 

 

 

 

 

  9. FUNDINGSOURCE: (Enteramountoffundingfromeachsource)

 

      Fund Number &        State                    City $           Other $             Total Amount

      Name: N/A

 

 

 

 

      If an expenditure, is it budgeted?   El Yes 0 No          Where? Org                   Acct

      N/A

 

 

 

 10. ATTORNEY CONTACT: (Enter Name of Attorney that you've been working with)

      Chris Bacha

 

 

 

                                               Approved as to Availability of Funds

 

                 7,i t a &

 

 I 1.J.12epartment Director/Utflity Division Approval Director of Finance                         Utilities Approval

 

   11

GSWeb glDoc ... nts.                                                                                 Offi@ Sys tems @r

                                                                                                          (01/99)

 

Ordinance No.            26829               j

 

 

First Reading of Ordinance:   JUN 2 6 2001

 

 

Final Reading of Ordinance:     JUL    7 2001

 

                  Jul

Passed:              L

 

 

 

Roll Call Vote:

 

MEMBERS            AYES            NAYS             ABSTAIN          ABSENT

Mr.  Dahl

IA-Bu-Forrest-

Mr.Evans

Dr.  McGavick

Mr.  Miller

Ms.  Moss

Mr.  Phelps

1 Mrs.  Scarbrough I

Mayor Crowley     I    L-,--

 

 

 

MEMBERS            AYES            NAYS             ABSTAIN          ABSENT

Mr.  Dahl

 

Mr.Evans

Dr.  McGavick

Mr.  Miller

Ms.  Moss

Mr.  Phelps

Mrs.  Scarbrough

Mayor Crowley

 

 

 

 

 

 

 

 

g:@cityclkVormsWd-roll.doc