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Ordinance No. 2026-06 (Telecommunications Franchise agreement) 2026 Dmusign Emelope ID:9D2254F5-66B9-6519-8197-FFAFC8D9BE63 ORDINANCE NO.2026-06 AN ORDINANCE of the City of Bainbridge Island, Washington,granting Seattle SMSA Limited Partnership d/b/a Verizon Wireless, a nonexclusive ten-year franchise to construct, operate, and maintain telecommunications facilities in, upon, over, under, along, across, and through the City's public rights-of-way for the purpose of providing telecommunications Services, providing for severability and establishing an effective date. WHEREAS, RCW 35A.11.020 grants the City broad authority to regulate the use of the public right-of-way and RCW 35A.47.040 authorizes the City "to grant nonexclusive franchises for the use of public streets, bridges or other public ways, structures or places above or below the surface of the ground for... poles, conduits, tunnels, towers and structures, pipes and wires and appurtenances thereof for transmission and distribution of.., signals or other methods of communication;"and WHEREAS, the City Council finds that it is in the public interest to grant a franchise to SMSA Limited Partnership d/b/a Verizon Wireless;and WHEREAS, pursuant to RCW 35A.47.040, this franchise ordinance was introduced at one Bainbridge Island council meeting and passed at a subsequent regular meeting occurring at least five days after its introduction. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND,WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Grant of Franchise. A franchise is hereby granted to Seattle SMSA Limited Partnership d/b/a Verizon Wireless under the terms and conditions set forth in Exhibit A attached hereto and incorporated herein by reference. The franchise is granted for a period of ten (10) years from the effective date as listed in Section 23.5 of Exhibit A. Section 2. Acceptance - Compliance with Franchise Terms. As a condition of the franchise granted by this ordinance, Seattle SMSA Limited Partnership shall provide its written and acknowledged unconditional acceptance consistent with Section 4 of Exhibit A. By the adoption of this ordinance,the City of Bainbridge Island agrees to comply with all provisions of the same. Section 3. Severability. Should any section, paragraph, sentence, clause,or phrase of this ordinance, or its application to any person or circumstance. be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. Section 4. Effective Date. This ordinance shall take effect five (5) days from its passage and publication as required by law. Docusign Envelope ID:9D2254F5-66B9-8519-8197-FFAF08D9BE83 PASSED BY THE CITY COUNCIL this 26'day of May,2026. APPROVED BY THE MAYOR this 2&day of May, 2026. Clarence Moriwaki, Ma or ATTEST/AUTHENTICATED: Christine Brown, ity Clerk APPROVED TO FORM: Andrew Tsoming,City Atto PASSED BY THE CITY COUNCIL: May 26,2026 PUBLISHED: May 29.2026 EFFECTIVE DATE: June 2, 2026 Docusign Envelope ID:9D2254F5-66B9-8519-8197-FFAFCBD9BE83 EXHIBIT A TELECOMMUNICATIONS FRANCHISE AGREEMENT This Telecommunications Franchise Agreement ("Franchise") dated June 2, 2026 (the "Effective Date") is made and entered into by and between the City of Bainbridge Island, a municipal corporation in the state of Washington ("City") and Seattle SMSA Limited Partnership d/b/a Verizon Wireless, a Delaware limited partnership with its principal offices at One Verizon Way, Mail Stop 4AW I00, Basking Ridge,New Jersey 07920 ("Grantee"). Recitals WHEREAS, Seattle SMSA Limited Partnership d/b/a Verizon Wireless ("Grantee") doing business in the State of Washington, has applied for a non-exclusive telecommunications franchise to construct, operate, and maintain telecommunications facilities upon, in, under, across, along, and over certain City rights-of-way as hereinafter set forth, and NOW THEREFORE, in consideration of the terms, covenants and conditions set forth below, and other good and valuable consideration the receipt and adequacy of which are hereby acknowledged,the City and Grantee agree as follows: 1 Franchise Granted. 1.1 Grant of Franchise. Subject to obtaining any permits as are required under the City's Code or other applicable Laws (and subject to Grantee obtaining any additional necessary agreements, approvals, or authorizations from any entity that owns poles or any other third parry rights), the City hereby grants on a nonexclusive basis as provided in City Code, authorization for Grantee to attach, install, operate, maintain, remove, reattach, reinstall, relocate, upgrade and replace Facilities within the Rights-of-Way in the City for the purposes of providing Services to Persons located within or without the limits of the City. 1.1.1 Exhibit 1 is a detailed map representing the current locations of all Facilities in Grantee's Network in the City Rights-of-Way. If Grantee owns and/or Docusign Envelope ID:9D2254F5-66B9-8519-8197-FFAFC8D9BE83 operates Facilities in the City Rights-of-Way under a separate franchise agreement or otherwise, Grantee shall also include them in Exhibit 1. 1.1.2 During the term of this Franchise, the location of Facilities installed by Grantee or its designee shall be permitted by the City and disclosed, in writing, to the City by Grantee within ten days before its installation, removal, or relocation. 1.1.3 All provisions of Title 19 Bainbridge Island Municipal Code CSIMC") and Chapters 18.10 and 18.10A BIMC except as may be explicitly set forth otherwise in this Agreement, are hereby incorporated by reference. 1.2 Costs Related to Exercise of Franchise. Any and all rights expressly granted to Grantee under this Franchise shall be exercised at Grantee's sole cost and expense, shall be subject to the prior and continuing right of the City to use any and all parts of the Rights-of-way or Public Facilities or property, nonexclusively or concurrently, with any other Person, and further shall be subject to City's police powers and all deeds, easements, dedications, conditions, covenants, restrictions, encumbrances and claims of title which may affect the Rights-of-Way, or Public Facilities now or hereafter existing. Nothing in this Franchise shall be deemed to grant, convey, create, or vest a real property interest in land to or in Grantee, including any fee or leasehold interest or easement rights. 13 No Interference. Except as expressly permitted by applicable Laws, in the performance and exercise of its rights and obligations under this Franchise, Grantee shall not interfere in any manner with the use of Rights-of-Way by the City, by the general public or other Persons authorized to use or be present upon the Rights-of-Way, including interference with the operation of any and all sanitary sewers, water mains, storm drains, gas mains, parkway landscaping and/or irrigation, landscape planters, poles, aerial or underground electric and telephone wires, cable television and other telecommunications, utility and municipal property, without the express written approval of the owner or owners of the affected property or properties. 1.4 Compliance with Laws. Grantee shall comply with all applicable Laws in the exercise and performance of its rights and obligations under this Franchise. If required by applicable Law, Grantee shall obtain all required approvals from the appropriate Docusign Envelope ID:9D2254F5-66BM519-8197-FFAFc8D9BE83 governing authorities. Grantee acknowledges it is subject to the City's police powers and all applicable Laws. 2 Acceptance. 2.1 Franchise Acceptance. Grantee shall execute and return to the City its execution and acceptance of this Franchise in the form attached hereto as Exhibit 2 within sixty(60) days of the effective date of the ordinance authorizing the Franchise. In addition, Franchisee shall submit a certificate of insurance as proof of insurance obtained and blanket additional insured endorsement pursuant to Section 14, any applicable construction Restoration Bond pursuant to Section 21.1 and the Franchise Performance Bond required pursuant to Section 21.2 within sixty(60)days of the effective date. The administrative fee pursuant to Section 23.3 is due within ninety days of receipt of the invoice from the City. 2.2 Grantee to Have No Recourse. Grantee specifically agrees it will not seek monetary damages from City for any loss, cost, expense, or damage arising out of any Provision or requirement of this Franchise, or enforcement of this Franchise, nor from the City's exercise of its authority to grant additional Franchises, but shall only be entitled to seek declaratory or injunctive relief, except to the extent caused by the negligence or willful misconduct of the City. The City shall not be liable, unless directly and proximately caused by the willful, intentional or malicious acts of the City, for any damage to or loss of any Facility within the Right-of-Way as a result of or in connection with any public works, public improvements, construction, excavation, grading, filling, or work of any kind in the Right-of-Way by or on behalf of the City. 23 Acceptance of Power and Authority of City. Grantee expressly acknowledges by acceptance of this Franchise that: 2.3.1 It has relied upon its own investigation and understanding of the power and authority of the City to grant and enforce the Franchise; 2.3.2It has not been induced to enter into this Franchise arrangement by any understanding or promise or other statement, whether verbal or written, by or on Docusign Emelope ID:9D2254F5.6689-B51M197-FFAFC8D9BE83 behalf of the City concerning any term or condition of the Franchise that is not specifically included herein; 2.3.3 It has carefully read the terms and conditions contained herein and of the Ordinance and that Grantee is willing to and does accept all the obligations of such terms and conditions to the extent not inconsistent with state or federal law. 3 Limitations on Authority. 3.1 Subject to Other Requirements. Grantee's right to operate and maintain its Telecommunications Network is subject to the terms, conditions, and requirements of this Franchise, the City Code, and all applicable Laws, and Grantee's right to construct, erect, install or modify its Telecommunications Network is specifically subject to the requirement that Grantee obtain Permits as set forth in Code; and obtain all required permits for, and otherwise comply with, all applicable land use and zoning regulations, which control development on property contiguous to the right-of-way containing the proposed Facilities site. 3.2 After Acquired Facilities. Grantee expressly acknowledges and agrees, by acceptance of this Franchise, that Facilities and appurtenances in Rights-of-Way that are subsequently acquired by the Grantee and that (if acquired prior to this original Franchise grant) would have been subject to this Franchise and the permitting authority related thereto shall be subject to the provisions of this Franchise and all Permits related thereto. 3.3 Privileges Must be Specific. No privilege or exemption is granted or conferred by this Franchise except as may be specifically prescribed. 4 Nonexclusive Franchises. This Franchise is nonexclusive. City reserves the right to grant additional Franchises to any Person at any time. 5 Amendments. Except for changes to Exhibit 1 addressed in Section 1.1.3, this Franchise may be amended only upon the mutual written consent of City and Grantee or in the exercise of the City's police power authority or other explicit authority pursuant to applicable laws. Docusign Envelope ID:9D2254F546B9-85195197-FFAFC8D9BE83 6 Service of Notice. Except as otherwise specifically provided herein, any notices required or permitted to be given under this Franchise shall be deemed to be properly served when deposited with the United States Postal Service, postage paid, certified or registered mail, or via nationally recognized overnight carrier, and addressed to the party to receive same, or at such other address of which the party to receive the notice shall have designated in the Franchise. NOTICES TO THE CITY shall be addressed to all of the following: Attention: City Clerk 280 Madison Avenue North Bainbridge Island, WA 98110-1812 With Copies to: Attention: Public Works Director 280 Madison Avenue North Bainbridge Island, WA 98110-1812 NOTICES TO THE GRANTEE shall be addressed to all of the following: Seattle SMSA Limited Partnership d/b/a Verizon Wireless Basking Ridge Mail Hub Attention: Legal Intake One Verizon Way Basking Ridge,New Jersey 07920 7 Term of Franchise. This Franchise shall be for ten (10) years, beginning on the Effective Date of this Franchise (the " Term"), unless earlier terminated in accordance with this Franchise. 8 Abandonment. 8.1 In the event that any Facilities or the Services are out of service for a period of one hundred eighty (180) consecutive days or more, it shall be considered abandoned ("Abandoned") and Grantee shall promptly notify the City in writing, and Docusign Envelope ID:9D22S4F5-668"51"197-FFAF08D9BE83 within ninety (90) days remove Abandoned Facilities and restore the Right-of-Way to its condition prior to the placement of the Facilities, all at Grantee's sole cost and expense. If the City determines that any Facilities or the Services are Abandoned, City shall inform Grantee in writing, and Grantee upon ninety (90) days following receipt of written notice shall promptly remove such Facility or Facilities and restore the Right-of-Way to its condition prior to the placement of the Facilities, all at the Grantee's sole cost and expense. 8.2 If Grantee fails to remove the Facilities and restore the Right-of-Way as required in 8.1 of this Franchise, following the expiration of the ninety (90) day removal period and all cure periods have expired, the City shall be entitled to remove the Facilities and restore the Right-of-Way at Grantee's sole cost and expense or accept the transfer of ownership of the same to the City, 8.3 The Grantee has the right to challenge the City's determination that Facilities are Abandoned. Upon receipt by the City of written notice of such challenge, the City and the Grantee shall meet in good faith to discuss the nature of the City's determination and the Grantee may produce facts and other supporting information as to why the City's determination is incorrect or should be modified- 9 Reoair of Dama¢e. Grantee is responsible for repairing damage Grantee causes to all public and private facilities within the Right-of-Way and the Right-of-Way itself. Grantee shall complete all necessary repairs within sixty (60) days of notification by the City, unless emergency conditions necessitate, in City's reasonable discretion, more exigent remediation or City must immediately act. If Grantee fails to make the necessary repairs within sixty (60) days of notice, or emergency circumstances compel the City to immediately act, City may have repairs made with the reasonable costs being billed to Grantee. Billed costs are due within thirty (30) days of receipt of invoice. If the repair cannot fully reverse the deterioration or loss of life, the City may require Grantee to pay for the damage suffered as a direct result. 9.1 The Grantee has the right to challenge the City's determination that Grantee caused damage which must be repaired. Upon receipt by the City of written notice of such challenge, the City and the Grantee shall meet in good faith to discuss the nature of Docusign Envelope ID:9D2254F5-66B"519-8197-FFAFC8D9BE83 the City's determination and the Grantee may produce facts and other supporting information as to why the City's determination is incorrect or should be modified. 9.2 Grantee shall reimburse the City within 90 days following the receipt of an invoice for all reasonable amounts paid and/or costs incurred by the City in relation to the enforcement of this Section, all such fees, expenses and costs shall be recoverable from Grantee to the extent the City prevails in such enforcement action. 10 Default. Grantee shall be in default under this Franchise upon the occurrence of any of the following events: 10.1 Grantee's violation of material terms or provisions of Title 19 BIMC and Chapters 18.10 and 18.10A BIMC, this Franchise, or any other applicable Laws. 10.2 Grantee's failure to pay the City for any duly invoiced costs and/or fees incurred, pursuant to this Franchise or Code, and Grantee does not cure within sixty (60) days after written notice of non-payment is received by Grantee. 10.3 Upon Grantee's failure to perform any other obligation under this Franchise or to cure any failure of performance within sixty (60) days after notice of such failure or demand for cure is given by the City to Grantee or, if such failure of performance is not curable within sixty (60) days in the reasonable determination of City, if the defaulting party fails to commence such cure within sixty (60) days and fails to thereafter diligently pursue such cure to completion. 10.4 Grantee becomes insolvent, liquidates, is adjudicated as bankrupt, makes an assignment for the benefit of creditors, invokes any provision of law for the relief of debtors, or initiates any proceeding seeking protection from its creditors. 10.5 The waiver of any default or violation of any provision of this Franchise shall not be deemed to be a waiver or a continuing waiver of any subsequent breach or violation of the same or any other Provision of this Franchise. 11 Facility Relocation. Grantee shall, by a time specified by the City, protect, support, temporarily disconnect, relocate, or remove any of its Facilities when required by the Docusign Envelope ID:9D2254F5-66B9-851"197-FFAFC8D9BE83 City by reason of traffic conditions; public safety; public right-of-way construction; public right- of-way repair (including resurfacing or widening); change of public right-of-way grade, construction, installation or repair of sewers, drains, water pipes, power lines, signal lines, tracks, or any other type of government-owned communications system, public work, public facility or improvement; or any government-owned utility; public right-of-way vacation; or for any other purpose where the work involved would be aided by the removal or relocation of the Facility. Collectively, such matters are referred to below as the"public work." 11.1 Except in the case of emergencies, the City shall provide written notice describing where the public work is to be performed as soon as practical but at least 30 days prior to the deadline by which Grantee must protect, support, temporarily disconnect, relocate or remove its Facilities. Grantee may seek an extension of the time to perform such tasks where they cannot be performed in 30 days or by the completion time specified even with the exercise of its best efforts, and such request for an extension shall not be unreasonably refused. 11.2 In the event of an emergency, or where Grantee creates or is contributing to an imminent danger to health, safety, or property, the City may protect, support, temporarily disconnect, remove, or relocate any or all parts of the Facilities without prior notice, and charge Grantee for costs incurred. The City will make a reasonable effort to notify Grantee as soon as practicable, either before or after any emergency removal or relocation of Facilities. 12 Relocation Costs. Whenever the removal or relocation of Facilities is required under this Franchise or otherwise by order of the City, and such removal or relocation shall cause the Rights-of-Way to be damaged, Grantee, at its sole expense, shall promptly repair and return the surrounding Rights-of-Way to the same condition as existed prior to such work, in the reasonable determination of City. If Grantee fails to comply with this requirement, then the City shall have the option of performing or causing to be performed such reasonable and necessary work, and charge Grantee for the actual cost(s) incurred by City. Upon the receipt of a demand for payment by the City, Grantee shall reimburse the City for such costs within sixty (60)days. Docusign Envelope ID:9D2254F5-66B9-851 M197-FFAFC8D9BE83 13 Relocation for Third Parties. If any user that is authorized to place facilities in the rights-of-way requests Grantee to protect, support, temporarily disconnect, remove, or relocate its Facilities to accommodate the construction, operation, or repair of the facilities of such other user, Grantee shall, after 30 days' advance written notice, take action to effect the necessary changes requested. Unless the matter is governed by a valid contract or a state or federal law or regulation, or unless the communications facility that is being requested to move was not properly installed, the reasonable cost of the same shall be home by the user requesting the protection, support, temporary disconnection, removal, or relocation and at no charge to the City, even if the City makes the request for such action. Further, Grantee shall, on the request of any entity or person holding a valid permit issued by a governmental authority, temporarily raise or lower its Facilities and/or wires to permit the moving of buildings or other objects. The expense of such temporary removal or raising or lowering of Facilities or wires shall be paid by the entity or person requesting the same. Grantee shall be given not less than seven days' advance notice to arrange for such temporary wire changes. 14 Insurance. Grantee shall at all times comply with the insurance requirements of BIMC 19.02.070(B). The require Certificate of Insurance must be provided to the City within two days of Acceptance of this Franchise. 15 Termination. In addition to the provisions of BIMC 19.02.080, this Franchise may be terminated upon a default hereof as provided in this Franchise. A termination of this Franchise because of Grantee's default shall not prejudice any other remedy for breach of contract, damages, non-payment or otherwise, which the City has under this Franchise or under law. 15.1 Notice. This Franchise may be terminated by the City in accordance with the provisions of BIMC 19.02.080 after notice, an opportunity to cure, and a hearing as provided therein. 15.2 Lesser Sanctions. Additionally, the City may impose a lesser sanction as authorized by Code or Law. Docusign Emelope ID:9D2254F5-6689-8519-8197-FFAFC8D9BE83 15.3 If, at any time the City vacates any Rights-of-Way that is subject to rights granted by this Franchise, the City may, at its sole option, and by giving 60 days written notice to Grantee, its successors and assigns, terminate this Franchise with reference to such portions of Rights-of--Way so vacated and the City shall not be liable for any damages or loss to Grantee by reason of such termination. Further, the City may, at its sole option, choose to retain an easement for public utilities and services consistent with RCW 36.87.140. 16 General Terms. 16.1 Reports and Records of the Grantee. Reports Required. Grantee shall supply, upon request and at no cost, any information, requested by the City to coordinate municipal functions with the Grantee's activities and fulfill any municipal obligations under state law. Said information may include an installation inventory, location of existing or planned Facilities, maps, plans, and as-built drawings of the operator's installations in the City. Said information may be requested either in hard copy and/or electronic format compatible with the City's database system, as now or hereafter existing. Grantee shall keep the City informed of its long-range plans for coordination with the City's long-range ` plans. 16.1.1 In the event that the City receives a public records request under Chapter 42.56 RCW or similar law, the City shall promptly notify Grantee and Grantee shall produce all records required under Chapter 42.56 RCW. Should Grantee obtain an injunction or court order limiting or prohibiting production of such records, the City shall comply with such injunction or court order obtained by Grantee; however, in the event a higher court overturns such injunction or court order and such higher court action is or has become final and non-appealable, Grantee shall reimburse the City for any fines or penalties imposed for failure to disclose such records as required hereunder within sixty (60) days of receipt of a request from the City. 16.2 Enforcement and Administration by City. The City, through the office of the City Engineer, shall have continuing regulatory jurisdiction and supervision over the Docusign Envelope ID:9D2254F5f6B9-8519b197-FFAFC8D9BE83 occupancy of the Rights-of-Way pursuant to this Franchise, and may from time to time adopt such rules and regulations as it may deem necessary. 16.3 Failure to Enforce. Neither the Grantee nor the City shall be excused from complying with any of the terms and conditions of this Franchise by any failure of the other party upon one or more occasions to insist upon or to seek compliance with any of such terms or conditions. 17 Inspection. The City maintains the right to inspect, at Grantee's reasonable expense, all of Grantee's Facility installations in the Rights-of-Way. In addition, the City Engineer may require Grantee to furnish certification from Grantee's engineer that the Facilities are constructed and operated in accordance with good engineering practice and are reasonably secure against damage and injury. 18 Removal of Unauthorized Facilities. Within ninety (90) days of receipt of written notice from the City Engineer or designee, Grantee shall remove any unauthorized Facility or related appurtenance within the rights-of-way, at its own expense. If Grantee fails to remove such Facilities or appurtenances, the City may cause the removal and charge the Grantee for the reasonable costs incurred. A Facility or appurtenance is unauthorized and subject to removal in the following circumstances: 18.1 Upon expiration or termination of the Grantee's Franchise. 18.2 Upon abandonment of a Facility within the Rights-of-Way. 183 If the Facility was constructed or installed without the prior grant of a franchise or permit. 18.4 If the Facility was constructed or installed without the prior issuance of a required right-of-way permit. 18.5 If the Facility was constructed or installed at a location not permitted by the Grantee's Franchise. Docusign Emelope ID:9D2254F5-66B9-85195197-FFAFC8D9BE83 18.6 Any such other reasonable circumstances deemed necessary by the City Engineer or designee. 19 Permits and Construction Standards. 19.1 General Standards. 19.1.1 Permits. Grantee shall comply with all applicable City code and City standards for the proposed right-of-way work. In addition thereto, Grantee shall apply for a Right-of-Way Permit,Wireless Communication Facility, a Small Wireless Facility Permit, or other applicable permit prior to beginning any work in a Right-of- Way generally including the opening of any street in the City. No work, other than emergency work, shall commence without such Permit_ Grantee may immediately perform emergency repairs necessary due to imminent danger to health, safety or property or to temporarily restore communications system services which have been disrupted by storms, earthquakes, riots or other unexpected accidents or phenomenon. When performing such emergency work, Grantee shall be required (a) to give notice to the City of the commencement of the emergency work as quickly as practical, (b) to apply for the permits which would otherwise be required for such work by the next business day from the commencement of such work, and (c) to conform any work performed prior to the approval of the required permit and to carry out any other work in the area involved in accordance with the requirements of the permit. 19.12 Network Planning. The Grantee and the City shall make reasonable good faith efforts to advise each other of plans and programs, both long and short range, for the placement of Facilities in Rights-of-Way, and other Public Property which might affect the other party or require its coordination. Upon the City's request, Grantee shall use commercially reasonable efforts to submit to the City a current(as of the date of City's request)Exhibit 1. 19.1.3 Limited Access. The City reserves the right to limit or exclude Grantee's access to a specific route, public right-of-way, or other location when there is inadequate space to deploy, a pavement cutting moratorium, deployment would cause unnecessary damage to public property, or interfere with City utilities, or for any other reason determined by the City Executive or designee, or the City Engineer Docusign Envelope ID:9D2254F586B9-8519-8197-FFAFC8D9BE83 in their reasonable discretion to be necessary for management and preservation of the Rights-of--Way. 20 Indemnification. The Grantee agrees to defend, indemnify, and hold harmless the City, its trustees, elected and appointed officers, agents, and employees, from and against any and all claims, demands, or causes of action of whatsoever kind or nature, and the resulting losses, costs, expenses, reasonable attorneys' fees, liabilities, damages, orders, judgments, or decrees, sustained by the City to the extent resulting from or of the acts, errors, or omissions of Grantee, or its agents, independent contractors or employees or the construction, operation or repair of any Facility in the public rights-of-way. The indemnity in the preceding sentence shall not apply to the negligence or willful misconduct of the City, its trustees, elected and appointed officers, agents, and employees. The City shall give prompt written notice to Grantee of any claim for which the City seeks indemnification. Grantee shall have the right to investigate such claims, and the City shall cooperate with the Grantee in any such investigation. If the claim, suit, or action for injuries, death, or damages as provided for in the preceding paragraphs of this Franchise is caused by or results from the concurrent negligence of the indemnitee or the indemnitee's agents or employees, this Section 20 shall be valid and enforceable only to the extent of the indemnitor's negligence. Grantee specifically and expressly waives any immunity under Industrial Title 51 RCW, and acknowledges that this waiver is mutually negotiated by the parties herein. 20.1 No Responsibility for Loss. The City shall not be responsible for any damages, losses, or liability of any kind arising from the issuance or approval by the City of a permit, license, or franchise to any third party. 22.3 Consequential Damages. Neither party will be liable under this Agreement for consequential, special, punitive or indirect damages, whether under theory of contract, tort (including negligence), strict liability, or otherwise. 21 Bonds. 21.1 Restoration Bond Requirement. Prior to the commencement of any construction of new or additional Facilities within the rights-of-way, Grantee shall furnish a Docusign Envelope ID:9D2254F5-66B9-851"197-FFAFC8D9BE83 Restoration Bond if required by Code as a result of constructing the Grantee's facilities within rights-of-way. 21.2 Franchise Performance Bond Requirement. Grantee shall provide City with a Franchise Performance Bond in the amount of Twenty-Five Thousand Dollars ($25,000.00) ("Franchise Bond") running or renewable for the term of this Franchise, in a form and substance reasonably acceptable to City. In the event Grantee shall fail to substantially comply with any one or more of the provisions of this Franchise following notice and a reasonable opportunity to cure, then there shall be recovered jointly and severally from Franchisee and the bond any actual damages suffered by City as a result thereof, including but not limited to staff time, material and equipment costs, compensation or indemnification of third parties, and the cost of removal or abandonment of Facilities hereinabove described. Grantee specifically agrees that its failure to comply with the terms of this Section 21 shall constitute a material breach of this Franchise. The amount of the bond shall not be construed to limit Grantee's liability or to limit the City's recourse to any remedy to which the City is otherwise entitled at law or in equity. 21.3 Rights Cumulative. The rights reserved by City with respect to the ` Performance Bond and Franchise Bond are in addition to all other rights City may have under the Franchise or any other law. City may, from year to year, in its sole discretion, adjust the amount of the bond. 21.4 Change in Surety. If, at any time during the term of this Franchise, the condition of the corporate surety shall change in such a manner as to render the bonds unsatisfactory to the City, the Grantee shall replace such bonds by a bond of like amount, similarly conditioned, issued by a corporate surety satisfactory to the City. 22 Assignment or Transfer of Grantee or Franchise and Franchise Renewal. 22.1 This Franchise shall not be sold, leased, assigned, or otherwise alienated without the express consent of the city, and no rule of estoppel shall be invoked against the city in case the City shall assert the invalidity of any attempted transfer in violation of this section. The city agrees not to withhold consent where the operator demonstrates that the Docusign Envelope ID:902254F5-66B9-851"197-FFAFCBD9BE83 requested assignment is in the nature of a change of name or a change in the nature of a reorganization or merger of or with an entity controlled by, controlling, or under the common control of the operator, there being no other change in the resulting entity's ability to meet its master permit or license obligations_ 22.2 The City reserves the right to invoke any or all provisions of this Franchise upon the Grantee's successors or assigns, judgment creditors, or distributes of Facilities or property used in enjoyment of privileges conferred herein, whether or not stated elsewhere, all without waiver of the right to withhold consent not expressly given of any such transfer and/or require a new Franchise. 22.3 Grantee shall not permit installations by others without written approval from the City. Such approval shall not be in lieu of a franchise, master permit or license or other requirements of the City. Whether or not permitted, Grantee shall remain responsible for all third party users permitted or allowed by Grantee for compliance with the Franchise. 23 Miscellaneous. 23.1 Severability. If any section, subsection, sentence, clause, phrase, or portion of this Franchise is for any reason held to be invalid or unconstitutional by any court or administrative agency of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions thereof In such event, the parties mutually agree to make any amendments to this Franchise or other applicable agreements necessary to effectuate the intention of this Franchise. In the event that such amendments are barred by any legal requirements governing any party, the parties shall use their best efforts to otherwise avoid prejudice to the respective parties' interests, and to implement changes to effectuate the intent in entering into this Franchise. Should the City, in its reasonable discretion, determine that the severed portions substantially alter the Franchise so that the original intent and purpose of this Franchise no longer exists, the City may terminate this Franchise without cost or penalty. Docusign Envelope ID:9D2254F5-66B9-8519-8197-FFAFC8D9BE83 23.2 Applicable Law. The Franchise is governed by the Laws of the State of Washington, and venue for any enforcement litigation shall be in Kitsap County Superior Court or the United States District Court serving Kitsap County, Washington. In case of conflict or ambiguity between this Franchise and Grantee's application, this Franchise shall be controlling. 233 Grantee shall pay the actual administrative expenses incurred by the City that are directly related to receiving and approving this Franchise pursuant to RCW 35.21.860, including the reasonable and actual costs associated with the City's legal costs incurred in drafting and processing this Franchise. No construction permits shall be issued for the installation of Facilities authorized until such time as the City has received payment of this fee. Grantee shall further be subject to all permit fees associated with activities undertaken through the authority granted in this Franchise or under the laws of the City. Where the City incurs costs and expenses for review, inspection, or supervision of activities, including but not limited to reasonable fees associated with attorneys, consultants, City Staff and City Attorney time, undertaken through the authority granted in this Franchise or any ordinances relating to the subject for which a permit fee is not established, Franchisee shall pay such costs and expenses directly to the City. 23.4 Hazardous Substances. Grantee shall not introduce or use any hazardous substances (chemical or waste), in violation of any applicable law or regulation, nor shall Grantee allow any of its agents, contractors or any person under its control to do the same. Grantee will be solely responsible for and will defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from and against any and all claims, costs and liabilities including reasonable attorneys' fees and costs, arising out of or in connection with the cleanup or restoration of the right-of-way to the extent caused by Grantee's use, storage, or disposal of hazardous substances, whether or not intentional, and the use, storage or disposal of such substances by Grantee's agents, contractors or other persons acting under Grantee's control, whether or not intentional. Notwithstanding this paragraph or any other provision in the Franchise, Grantee shall not be liable or responsible for any environmental condition, including the release of hazardous substances, except to the extent Grantee causes or exacerbates the condition. Docusign Envelope ID:9D2254F5.66B9-851"197-FFAFC8D9BE83 23.5 Effective Date. The provisions of this Franchise shall be effective only once the acceptance of this Franchise by the Grantee as provided herein is provided. 23.6 Limitation. Nothing in this Franchise shall be construed or interpreted in any manner as limiting, relinquishing, or waiving any rights of ownership enjoyed by the City in any Rights-of-Way or any Public Facilities, or in any manner limiting, relinquishing, or waiving the City's control over the operation and maintenance of the Rights-of-Way or any Public Facilities or in any manner limiting, relinquishing, or waiving lawful governmental rights that the City possesses. 23.7 Non-Waiver. Excuse by City or Grantee of strict performance of any Provision of this Franchise shall not be a waiver or prejudice the such party's right to require strict performance of the same or any other Provision in the future. 23.8 Integration. This Franchise contains the entire understanding between the parties with respect to the subject matter herein. There are no representations, agreements, or understandings (whether written or oral) between or among the parties relating to the subject matter of this Franchise which are not fully expressed herein. 23.9 Franchise Subject to Future Ordinance(s). Grantee acknowledges that the City may develop additional rules, regulations, and specifications for the use of the Rights- of-Way and/or Public Facilities, and Grantee agrees that such rules, regulations, and specifications, when finalized and to the extent not inconsistent with, or otherwise preempted by, federal or state law, shall govern Grantee's activities hereunder as if they were in effect at the time this Franchise was executed, provided that, no subsequently enacted rule, regulation, or specification may retroactively place Grantee in violation thereof. 23.10 Attorneys' Fees. If a suit or other action is instituted in connection with any controversy arising out of this Franchise, the substantially prevailing party shall be entitled to recover all of its costs and expenses, including such sum as the court may judge as reasonable for attorneys' fees, costs, expenses and attorneys' fees upon appeal of any judgment or ruling. Docusign Envelope ID:9D2254F5f8B"519-8197-FFAFC8D9BE83 23.11 Survival. All of the provisions, conditions, and requirements of Section 1.4, Section 8, Section 9, Section 10, Section 11, Section 12, Section 13, Section 14, Section 16.1, Section 17, Section 18, Section 20, Section 21, Section 23.4, and Section 23.7 of this Franchise shall be in addition to any and all other obligations and liabilities Grantee may have to the City at common law,by statute, or by contract, and shall survive the City's Franchise to Grantee for the use of the City Rights-of-Way, and any renewals or extensions thereof. All of the provisions, conditions, regulations and requirements contained in this Franchise Agreement shall further be binding upon the heirs, successors, executors, administrators, legal representatives and assigns of Grantee and all privileges, as well as all obligations and liabilities of Grantee shall inure to its heirs, successors and assigns equally as if they were specifically mentioned where Grantee is named herein. 23.12 Authorization. The undersigned respectively represent and warrant that its signatory is a duly authorized and empowered to sign this Franchise Agreement. 24 Definitions. 24.1 General Interpretation. For the purpose of this Franchise, and except as defined specifically below, the terms, phrases, words and their derivations herein shall have the meaning given in B11%4C. Words not otherwise defined shall be given their common and ordinary meaning. When consistent with the context, words used in the singular number include the plural number, words in the plural number include the singular number, and words used in the present tense include the future tense. 24.1.1 "Agency" means any governmental agency or quasi-governmental agency other than the City, including the FCC and the W TC. 24.1.2 "City" means the City of Bainbridge Island, Washington, and its lawful designees. 24.1.3 "City Property" means any real property owned by the City whether in fee or other ownership, estate or interest comprising or related to a Right of Way. 24.1.4 "Effective Date" means the date identified in Section 23.5 herein. Docusign Envelope ID:9D2254F5-66B9-8519-8197-FFAFC8D9BE83 24.1.5 "Facilities" means the elements of Grantee's Telecommunications Network including (i) physical infrastructure supporting high speed data, internet protocol-based services, internet access services, telephone, and data transport services conveyed using wireless facilities and (ii) the infrastructure development to be used for Wireless Facilities. The placement by Grantee of new poles is allowed with approval by the City. For the purposes of this Franchise, the term Facilities includes both Small Wireless Facilities and other Wireless Facilities, commonly referred to as"macrocell" facilities, including towers and new base stations. 24.1.6 "FCC" means the Federal Communications Commission, or lawful successor, authorized to regulate and oversee Telecommunications carriers, Services and providers on a national level. 24.1.7 "Fee" means any assessment, license, charge, fee, imposition, tax (but excluding any utility users' tax or occupation tax), or levy lawfully imposed by any governmental body. 24.1.8 "Franchise" means the nonexclusive authorization granted herein to use City Rights-of-Way to construct, operate, and maintain Grantee's Facilities. 24.1.9 "Grantee" means Seattle SMSA Limited Partnership d/b/a Verizon Wireless, and its agents, employees, lawful transferees, successors, and/or assigns. 24.1.10 "Laws" means any and all judicial decisions and any and all federal, state and local statutes, constitutions, ordinances, resolutions, regulations, rules, tariffs, administrative orders, certificates, orders, or other requirements of the City or other Agency having jurisdiction over the parties to this Franchise, in effect at the time of execution of this Franchise and thereafter. 24.1.11 "Month" means a calendar month. 24.1.12 "Person" means an individual, a corporation, a limited liability company, a general or limited partnership, a sole proprietorship, a joint venture, a business trust, or any other form of business association. 24.1.13 "Provision" means any clause, condition, covenant, qualification, restriction, reservation, term, or other stipulation in this Franchise that defines or otherwise controls, establishes, or limits the performance required or permitted by Docusign Envelope ID:9D2254F5-66BM519-8197-FFAFC8D9BE83 this Franchise. All provisions, whether covenants or conditions, shall be deemed to be both covenants and conditions. 24.1.14 "Public Facility" means any tower, water tower, building, pole or other structure which the City owns or controls. 24.1.15 "Right-of-Way" or "Public rights-of-way" means land acquired or dedicated for public roads and streets which under applicable law the City has authority to grant master permits, franchises, right-of-way permits or licenses for use thereof or has regulatory authority thereover. The term does not include: 24.1.15.1 State highways; 24.1.15.2 Land dedicated for roads, streets and highways not opened and not improved for motor vehicle use by the public; 24.1.15.3 Structures such as, but not limited to, poles and conduits located in the right-of-way; 24.1.15.4 Parks and open space; 24.1.15.5 Publicly owned shorelines or harbor areas; and 24.1.15.6 Utility easements. 24.1.16 "Small Wireless Facilities" shall have the same meaning as "small wireless facility" as set forth in 47 CFR 16002, as may be amended. 24.1.17 "Telecommunications Network" or "Network" means all of Grantee's Facilities used in the provision of Telecommunication Services in the City, taken together as a unified system. 24.1.18 "Telecommunications Services" or "Services" means the transmission of information by wire, radio, optical cable, electromagnetic, or other similar means for hire, sale, or resale to the general public. For the purpose of this subsection, "information" means knowledge or intelligence represented by any form of writing, signs, signals, pictures, sounds, or any other symbols. For the purpose of this chapter, telecommunications service excludes the over-the-air transmission of broadcast television or broadcast radio signals 24.1.19 "Wireless communication facility" or "WCF" means an unstaffed facility for the transmission and/or reception of radio frequency, microwave Docusign Envelope ID:9D2254F5-66B9-85l"I 97-FFAFC8D9BE83 or other signals for commercial communications purposes, including and typically consisting of antennas, equipment facilities, transmission cables, a support structure required to achieve the necessary elevation, and reception and transmission devices and antennas. Doousign Envelope ID:9D2254F5-66B9-8519-8197-FFAFC8D9BE83 EXHIBIT 1 —DETAILED NETWORK MAP At the time of acceptance of this agreement the Grantee does not have any Facilities located in the City's Rights-of-Way EDIT 2-Acceptance Seattle SMSA Limited Partnership d/b/a Verizon Wireless, for itself, its successors and assigns, hereby accepts and agrees to be bound by all lawful terms, conditions and provisions of this Franchise. Seattle SMSA Limited Partnership d/b/a Verizon Wireless By: C o Pu I rship ' general partner By: 61 Date: �j I 21 vo Name: Title: UK. JA[ttyle: cai, nla<}(2kV STATE OF W2WN ) COUNTY OF Cbnlfcl COCW) . JR14L On AWALI 12, 2MSo before me, a Notary Public in and for the State of (n'Y11 , personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument, on oath� I stated'that he was authorized to execute the instrument, and acknowledged it as the CR. Of'o of Seattle SMSA Limited Partnership d/b/a Verizon Wireless, By Cellco Partnership, Its General Partner,to be the free and voluntary act and deed of said party for the uses and purposes mentioned in the instrument. IN WITNESS WHEREOF, I have hereMNOTPUBLIC 60cl l seal the day and year first above written. in and for the State of�CA residing at C� d �fia C n My appointment expires MO) U,'$w Print Name ��' t�l� '``C — A.R.KRUSE-LUDTKE Notary Public-California ' Contra Costa County Commisvon S 2438990 My Comm.Expires Mar 22,2027 —