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HomeMy WebLinkAbout06-14-10 Council Workshop SPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the ADA coordinator at (360) 403-3441 or 1-800-833-8388 (TDD only) prior to the meeting date if special accommodations are required. CALL TO ORDER / PLEDGE OF ALLEGIANCE/ROLL CALL APPROVAL OF THE AGENDA WORKSHOP ITEMS ~ NO ACTION WILL BE TAKEN 1. (10 minutes) ILA for fire investigation services ATTACHMENT A 2. (10 minutes) 173rd Alignment Discussion HANDOUT 3. (5 minutes) Extension of Mitigation Agreement with Snohomish ATTACHMENT B County for North County Solid Waste Transfer Station 4. (15 minutes) Bond Sale ATTACHMENT C 5. (15 minutes) Purchase of new Financial Software Package ATTACHMENT D 6. (15 minutes) Review of AMC Title 16 ATTACHMENT E 7. (10 minutes) Dog licenses ATTACHMENT F 8. Miscellaneous Council items ADJOURNMENT To download all attachments click here. Effective July 1, 2010, the City of Arlington will no longer publish the Arlington City Council Agenda in the newspaper. To review the Arlington City Council meeting agenda and attachments, please visit www.arlingtonwa.gov . To receive notice when a new City Council agenda is available, please visit www.arlingtonwa.gov and click on “Email Sign Up”. Arlington City Council Workshop June 14, 2010 – 7 PM City Council Chambers ~ 110 E. Third City of Arlington Council Agenda Bill AGENDA ITEM: WORKSHOP ITEM #1 ATTACHMENT A COUNCIL MEETING DATE: June 14, 2010 SUBJECT: Interlocal Agreement for Fire Investigative Services DEPARTMENT OF ORIGIN: FIRE Contact: Jim Rankin, Fire Chief ATTACHMENTS: Proposed Agreement EXPENDITURES REQUESTED: None BUDGET CATEGORY: LEGAL REVIEW: In Progress DESCRIPTION: The existing agreement for fire investigation services expired March 2008. The agreement provides fire investigation services through the County Fire Marshal’s Office. Services included in the agreement are: Cause and origin determination; Documentation of the investigation scene; interviewing witnesses; and coordination with the Police Department on any necessary criminal investigation follow-up. HISTORY: The City has had an agreement for fire investigation services for many years. Through this agreement the City has available to it all five members of the County Fire Marshal’s Investigation Unit at a very reasonable cost. By entering into this agreement the City is only charged for a single hourly rate irrespective of how many investigators are need to conduct the investigation. ALTERNATIVES: Send fire and police personnel to fire investigation certification courses. RECOMMENDED ACTION: Approve the interlocal agreement and authorize the Mayor to sign the agreement. City of Arlington Council Agenda Bill AGENDA ITEM: WORKSHOP ITEM #3 ATTACHMENT B COUNCIL WORKSHOP DATE: June 14, 2010 SUBJECT: One Year Extension to the Arlington and Snohomish County North County Recycling and Transfer (NCRTS) Traffic Mitigation Agreement DEPARTMENT OF ORIGIN: Public Works – James Kelly ATTACHMENTS: Extension Agreement EXPENDITURES REQUESTED: N/A BUDGET CATEGORY: N/A LEGAL REVIEW: Pending final review by City Attorney DESCRIPTION: One-year extension to the 1992 Arlington and Snohomish County Settlement and Mitigation Agreement for the NCRTS with an agreement to draft a new Mitigation Agreement before the expiration of this one-year extension. HISTORY: In 1992 the City of Arlington and Snohomish County entered into a “Settlement and Mitigation Agreement” to resolve various traffic mitigation issues related to the operation of the County’s North County Recycling and Transfer Station (NCRTS). In 1998 the City and County made an amendment to the Agreement that: - based the mitigation fees on measured hauled refuse tonnage, - established an agreed inflationary factor, - establish July 31st as the annual starting date by which to measure refuse tonnage, - and required the agreement be review every three years. The City reviewed and extended the agreement in 2001, 2004, and 2007. The agreement extension before you now agrees to a one year extension and agrees to work to rewrite the 1992 mitigation agreement. ALTERNATIVES: - Bring back for additional discussion at a later date RECOMMENDED ACTION: - Discussion only – no action is being requested. City of Arlington Council Agenda Bill AGENDA ITEM: WORKSHOP ITEM #4 ATTACHMENT C COUNCIL MEETING DATE: June 14, 2010 SUBJECT: 2010 Financings DEPARTMENT OF ORIGIN: Executive/Finance CONTACT: Allen Johnson, 403-3443 Jim Chase, 403-3422 ATTACHMENTS: 1. Preliminary Official Statement EXPENDITURES REQUESTED: Refinance 2001 LTGO Sell additional Bonds to Remodel Fire Stat. 46 and purchase land at the airport. BUDGET CATEGORY: Debt LEGAL REVIEW: DESCRIPTION: It is advantageous to refinance the 2001 Limited Tax General Obligation Bonds to take advantage of current low interest rates. Additional funds are needed to fund the remodel of Fire Station 46 and to purchase land at the airport in the Runway Protection Zone. HISTORY: Jane Towery, Managing Director with Piper Jaffray & Co., has determined the City could save approximately $125,000 in interest payments over the next 11 years by refinancing the 2001 LTGO Bonds. The 2001 Bonds pay interest at 4.25% to 4.90%. It is estimated by refinancing the rates would be between 2.00% to 4.00%. New money, to finance the fire station remodel, would pay interest up to 4.50% in the later years (20 year financing) but would be structured to allow early for redemption. The FAA will be providing assistance with the airport land in the form of a grant. That grant, however, will not be available until 2013. Jane Towery originally directed the 2001 LTGO bond sales. She was with Bank of America Securities LLC at that time. ALTERNATIVES: 1. Table for additional review 2. Do not refinance 2001 LTGO Issue 3. Only finance the fire station remodel and airport land through bonds or loans with the possibility of higher interest payments. RECOMMENDED ACTION: Refinance the 2001 LTGO and borrow the additional funds for the fire station remodel and airport property through a bond sale with Piper Jaffray. PRELIMINARY OFFICIAL STATEMENT DATED JUNE __, 2010 NEW ISSUE RATING: Requested (Moody’s) BANK QUALIFIED BOOK-ENTRY ONLY In the opinion of Bond Counsel, under existing federal law and assuming compliance with applicable requirements of the nternal Revenue Code of 1986, as amended (the “Code”) that must be satisfied subsequent to the issue date of the Bonds, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals. However, while interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, interest on the Bonds received by corporations is taken into account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicable to corporations , interest on the Bonds received by certain S corporations may be subject to tax, and interest on the Bonds received by foreign corporations with United States branches may be subject to a foreign branch profits tax. Receipt of interest on the Bonds may have other federal tax consequences for certain taxpayers. See the caption “TAX EXEMPTION” herein. CITY OF ARLINGTON, WASHINGTON $6,075,000* Limited Tax General Obligation and Refunding Bonds, Series 2010 DATED: Date of Delivery DUE: December 1, as shown on inside cover The City of Arlington, Washington (the “City”) Limited Tax General Obligation and Refunding Bonds, Series 2010 (the “Bonds”) will be issued in fully registered form and when issued, will be registered in the name of Cede & Co., as bond owner and nominee for The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds. The Bonds will be initially issued in Book-Entry form only in the denomination of $5,000 or any integral multiple thereof within a single maturity. Purchasers will not receive certificates representing their interest in the Bonds purchased. The Bonds will bear interest payable on December 1, 2010 and semiannually thereafter on June 1 and December 1 of each year, to the maturity or prior redemption of the Bonds. The principal of and interest on the Bonds are payable by the fiscal agency of the State of Washington, currently, The Bank of New York Mellon, New York, New York (the “Fiscal Agent” or “Bond Registrar”). For so long as the Bonds remain in a “book-entry only” transfer system, the Bond Registrar will make such payments only to DTC, which will in turn remit such principal and interest to the DTC participants for subsequent disbursement to Beneficial Owners of the Bonds. See Appendix C - “DTC & BOOK-ENTRY SYSTEM” hereto. The Bonds maturing on or after December 1, 2020 are subject to redemption prior to their stated maturity dates, at the option of the City, at any time on or after June 1, 2020, as a whole or in part (within one or more maturities selected by the City and randomly within a maturity in such manner as the Bond Registrar shall determine), a t par plus accrued interest to the date fixed for redemption. See „DESCRIPTION OF THE BONDS – Redemption Provisions” herein. MATURITY SCHEDULE - SEE INSIDE COVER The Bonds are limited tax general obligations of the City. The full faith , credit and resources of the City are pledged irrevocably for the annual levy and collection of property taxes within the constitutional and statutory limitations provided by law without a vote of the electors, in an amount sufficient, together with other money legally available to be used therefor, to pay when due the principal of and interest on the Bonds. The Bonds do not constitute a debt or indebtedness of the State of Washington or any political subdivision thereof other than the City. The City has designated the Bonds as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See “TAX EXEMPTION” herein. The Bonds are offered by the Underwriter when, as and if issued, with the approving legal opinion o f Foster Pepper PLLC, Bond Counsel, Seattle, Washington. It is expected that the Bonds in book-entry form will be ready for delivery through the facilities of DTC in New York, New York, by Fast Automated Securities Transfer, on or around August 18, 2010. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must re ad the entire Official Statement to obtain information essential to the making of an informed investment decision. *Preliminary, subject to change. TThhiiss iiss aa PPrreelliimmiinnaarryy OOffffiicciiaall SSttaatteemmeenntt aanndd tthhee iinnffoorrmmaattiioonn ccoonnttaaiinneedd hheerreeiinn iiss ssuubbjjeecctt ttoo ccoommpplleettiioonn oorr aammeennddmmeenntt wwiitthhoouutt nnoottiiccee.. TThheessee sseeccuurriittiieess mmaayy nnoott bbee ssoolldd nnoorr mmaayy ooffffeerrss ttoo bbuuyy bbee aacccceepptteedd pprriioorr ttoo tthhee ttiimmee tthhee OOffffiicciiaall SSttaatteemmeenntt iiss ddeelliivveerreedd iinn ffiinnaall ffoorrmm.. UUnnddeerr nnoo cciirrccuummssttaanncceess sshhaallll tthhiiss PPrreelliimmiinnaarryy OOffffiicciiaall SSttaatteemmeenntt ccoonnssttiittuuttee aann ooffffeerr ttoo sseellll oorr tthhee ssoolliicciittaattiioonn ooff aann ooffffeerr ttoo bbuuyy,, nnoorr sshhaallll tthheerree bbee aannyy ssaallee ooff tthheessee sseeccuurriittiieess,, iinn aannyy jjuurriissddiiccttiioonn iinn wwhhiicchh ssuucchh ooffffeerr,, ssoolliicciittaattiioonn oorr ssaallee wwoouulldd bbee uunnllaawwffuull pprriioorr ttoo rreeggiissttrraattiioonn oorr qquuaalliiffiiccaattiioonn uunnddeerr tthhee sseeccuurriittiieess llaawwss ooff ssuucchh jjuurriissddiiccttiioonn.. CITY OF ARLINGTON, WASHINGTON $6,075,000* LIMITED TAX GENERAL OBLIGATION AND REFUNDING BONDS, SERIES 2010 MATURITY SCHEDULE SERIAL BONDS Due Interest Price or Dec. 1 Amount* Rate Yield CUSIP No. (1) 2010 $60,000 042038 ___ 2011 100,000 042038 ___ 2012 385,000 042038 ___ 2013 395,000 042038 ___ 2014 410,000 042038 ___ 2015 415,000 042038 ___ 2016 435,000 042038 ___ 2017 450,000 042038 ___ 2018 475,000 042038 ___ 2019 495,000 042038 ___ 2020 515,000 042038 ___ 2021 530,000 042038 ___ 2022 130,000 042038 ___ 2023 140,000 042038 ___ 2024 145,000 042038 ___ 2025 150,000 042038 ___ TERM BONDS Due Interest Price or Dec. 1 Amount* Rate Yield CUSIP No. (1) 2030 $845,000 042038 ___ (1) The CUSIP numbers are included in this Official Statement for convenience of the holders and potential holders of the Bonds. Copyright 2009, American Bankers Association. The CUSIP numbers herein are provided by CUSIP Global Service. CUSIP Global Service is managed on behalf of the American Bankers Association by Standard and Poor‟s. These numbers are not intended to create a database and do not serve in any way as a substitute for the CUSIP Service. CUSIP numbers are subject to change. The Cit y takes no responsibility for the accuracy of such CUSIP numbers. * Preliminary, subject to change. No dealer, broker, sales representative or other person has been authorized by the City or Piper Jaffray & Co. (the “Underwriter”) to give any information or to make any representations with respect to the Bonds other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Stateme nt does not constitute an offer to sell or the solicitation of an offer to buy, nor there be any sale of the Bonds by any person, in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. - - - - - - The information set forth or included in this Official Statement has been provided by the City and from other sources believed by the City to be reliable but is not guaranteed as to accuracy or completeness and it is not to be construed as a representation by the Unde rwriter. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but t he Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale hereunder shall create any implication that there has been no change in the financial condition or operations of the City described herein since the date hereof. This Official Statement contains, in part, estimates and matters of opinion that are not intended as statements of fact, and no representation or warranty is made as to the correctness of such estimates and opinions or that they will be realized. - - - - - - The Bonds have not been registered with the Securities and Exchange Commission under the Securities Act of 1933, in reliance upon a specific exemption contained in such act. The Bonds may, however, be subject to registration or qualification under the securities laws of various states, and may not be transferred in violation of such state laws. The registration or qualification of the Bonds in accordance with applicable provisions of the securities laws of the states in which the Bonds have been registered or qualified, if any, and exemption from registration or qualification in other states, shall not be regar ded as a recommendation thereof. No state nor any state or federal agency has passed upon the merits of these Bonds or the accuracy or completeness of this Official Statement. Any representation to the contrary may be a criminal offense. - - - - - - This Preliminary Official Statement has been “deemed final” as of its date by the City pursuant to Rule 15c2 -12 of the Securities and Exchange Commission except for the omission of offering prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity, delivery dates, and other terms of the Bonds depending on such matters, in accordance with Section 240.15c2-12(b)(1) of Chapter 11 of Title 17 of the Code of Federal Regulations. The City has also undertaken to provide c ontinuing disclosure on certain matters, including annual financial information and specific material events, as more fully describe d herein under “CONTINUING DISCLOSURE.” CITY OF ARLINGTON, WASHINGTON 238 N. Olympic Avenue Arlington, WA 98223 (360) 403-3421 www.ci.arlington.wa.us* MAYOR Term Expires CITY COUNCIL Member Term Expires APPOINTED OFFICIALS BOND COUNSEL BOND REGISTRAR * The City‟s website is not part of this Official Statement, and investors should not rely on information presented in the City‟s website in determining whether to purchase the Bonds. This inactive textual reference to the City‟s website is not a hyperlink and does not incorporate the City‟s website by reference. TABLE OF CONTENTS INTRODUCTION ............................................................................................................................................................................ 1 DESCRIPTION OF THE BONDS............................................................................................................................................... 1 Principal Amounts, Dates, Interest Rates, and Maturities ...................................................................................................... 1 Form, Denomination and Registration ....................................................................................................................................... 1 Authorization of Bonds ................................................................................................................................................................. 1 Purpose and Use of Proceeds ...................................................................................................................................................... 1 Fiscal Agent .................................................................................................................................................................................... 2 Redemption Provisions.................................................................................................................................................................. 2 Notice of Redemption ................................................................................................................................................................... 2 Open Market Purchase .................................................................................................................................................................. 3 Failure to Redeem the Bonds ....................................................................................................................................................... 3 Defeasance of the Bonds ............................................................................................................................................................... 3 Book-Entry Bonds .......................................................................................................................................................................... 3 Transfer and Exchange ................................................................................................................................................................. 3 SECURITY FOR THE BONDS .................................................................................................................................................... 4 SOURCES AND USES OF FUNDS ............................................................................................................................................. 4 TAXING AUTHORITY .................................................................................................................................................................. 4 Regular Property Tax Limitations ................................................................................................................................................ 4 Assessed Value ................................................................................................................................................................................ 5 Overlapping Taxing Districts ....................................................................................................................................................... 6 Property Tax Rates and Tax Levies ............................................................................................................................................. 6 TAX COLLECTION ........................................................................................................................................................................ 7 Tax Collection Procedures ............................................................................................................................................................ 7 Tax Collection Record .................................................................................................................................................................. 7 Collection of Other Taxes ............................................................................................................................................................ 7 Major Taxpayers ............................................................................................................................................................................. 8 AUTHORIZATION OF INDEBTEDNESS ............................................................................................................................. 8 General Obligation Indebtedness ................................................................................................................................................ 8 Limits on Amount of General Obligation Indebtedness ........................................................................................................ 8 Authorization of Short-Term Debt ............................................................................................................................................. 9 DEBT INFORMATION................................................................................................................................................................. 9 DEBT PAYMENT RECORD ...................................................................................................................................................... 11 FUTURE FINANCING ................................................................................................................................................................. 11 STATEMENT OF GENERAL FUND REVENUES AND EXPENDITURES ........................................................... 12 GENERAL FUND BUDGET OF THE CITY ........................................................................................................................ 13 CITY PROFILE .............................................................................................................................................................................. 14 Government Organization ......................................................................................................................................................... 14 Labor Relations ............................................................................................................................................................................. 14 Retirement Plans ........................................................................................................................................................................... 14 Other Post-Employment Benefits ............................................................................................................................................ 15 Insurance ....................................................................................................................................................................................... 15 Accounting and Budgeting Policies ........................................................................................................................................... 16 Auditing of City Finances ............................................................................................................................................................ 16 Authorized Investments .............................................................................................................................................................. 16 GENERAL AND ECONOMIC INFORMATION ................................................................................................................ 17 Population ..................................................................................................................................................................................... 17 Largest Employers ....................................................................................................................................................................... 18 Economic Data ............................................................................................................................................................................ 18 INITIATIVE AND REFERENDUM......................................................................................................................................... 21 TAX EXEMPTION ........................................................................................................................................................................ 21 LITIGATION ................................................................................................................................................................................... 22 CONTINUING DISCLOSURE UNDERTAKING ............................................................................................................... 22 Compliance with Continuing Disclosure Undertakings ........................................................................................................ 23 BOND RATING .............................................................................................................................................................................. 23 APPROVAL OF BOND COUNSEL .......................................................................................................................................... 23 LIMITATIONS ON REMEDIES ................................................................................................................................................ 23 CONFLICTS OF INTEREST ...................................................................................................................................................... 23 UNDERWRITING .......................................................................................................................................................................... 24 CONCLUDING STATEMENT .................................................................................................................................................. 24 FORM OF LEGAL OPINION................................................................................................... ............................ Appendix A 2008 AUDITED FINANCIALS.................................................................................................. ............................ Appendix B DTC & BOOK-ENTRY SYSTEM.......................................................................................................................... Appendix C PRELIMINARY OFFICIAL STATEMENT CITY OF ARLINGTON, WASHINGTON $6,075,000* Limited Tax General Obligation and Refunding Bonds, Series 2010 INTRODUCTION The City of Arlington, Washington (the “City”), a municipal corporation duly organized and existing under and by virtue of the laws of the State of Washington (the “State”), furnishes this Official Statement in connection with the offering of $6,075,000* principal amount of Limited Tax General Obligation and Refunding Bonds, Series 2010 (the “Bonds”). This Official Statement provides information concerning the City and the Bonds. DESCRIPTION OF THE BONDS Principal Amounts, Dates, Interest Rates, and Maturities The Bonds are being issued in the principal amount of $6,075,000*. The Bonds will be dated and bear interest from their date of initial delivery to the Underwriter. The Bonds will mature on the dates and in the principal amounts as set forth on the inside cover of this Official Statement. The Bonds will bear interest payable semiannually, on each June 1 and December 1, commencing December 1, 2010, at the rates set forth on the inside cover of this Official Statement. Interest on the Bonds will be computed on the basis of a 360 -day year of twelve 30-day months. Form, Denomination and Registration The Bonds will be issued in fully registered form as to both principal and interest in the denomination of $5,000 each or any integral multiple thereof within a single maturity and series. The Bonds, when issued, will be registered in the name of Cede & Co., as registered owner and nominee of the Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds. Individual purchases may be made in Book-Entry form only. Purchasers will not receive certificates representing their interest in the Bonds purchased. So long as Cede & Co. is the registered owner o f the Bonds, as nominee of DTC, references herein to the registered owners or bond owners will mean Cede & Co. and will not mean the “Beneficial Owners” of the Bonds. In this Official Statement, the term “Beneficial Owner” will mean the person for which a DTC participant acquires an interest in the Bonds. See Appendix C - “DTC & BOOK-ENTRY SYSTEM” hereto. Authorization of Bonds The Bonds are issued in accordance with the provisions of the Constitution and ch. 39.36, 39.46 and 39.53 of the RCW and other applicable statutes of the State, pursuant to Ordinance No. ____ (the “Bond Ordinance”) of the City Council passed on July 19, 2010. Purpose and Use of Proceeds The Bonds are being issued for the purpose of providing a portion of the funds to pay the cost of purchasing Airport Land, remodeling Fire Station #46, to advance refund the City‟s outstanding Limited Tax General Obligation Bonds, Series 2001 (the “Refunded Bonds”), [refund loan with Snohomish County] and to pay costs of issuance. See “Refunding Plan” below. Refunding Plan Depending on market conditions, upon issuance of the Bonds, certain proceeds of the Bonds, together with other money of the City, will be deposited with U.S. Bank National Association, the Refunding Trustee, and held in cash or used to acquire Acqui red Obligations in an amount sufficient to pay the principal of and interest on the 2001 Bonds when due on October 1, 2011. The following table provides a listing of the Refunded Bonds. ____________________ *Preliminary; subject to change. Maturity Years Principal Interest Call Call CUSIP No. (October 1) Amounts Rates Date Price (%) (042038) Verification of Mathematical Calculations Grant Thornton, independent certified public accountants, will verify the accuracy of the mathematical computations concerning the adequacy of the maturing principal amounts of and interest earned on the Acquired Obligations, to be placed together with other escrowed money in the escrow account to pay when due pursuant to the call for redemption, the principal of and interest on the Refunded Bonds. The verification will also confirm the mathematical computations supporting the conclusion of Bond Counsel that the Bonds are not “arbitrage bonds” as defined by Section 148 of the Code. Fiscal Agent The principal of and interest on the Bonds are payable by the fiscal agency of the State of Washington, currently The Bank of New York Mellon, in New York, New York (the “Bond Registrar”) as paying agent and registrar, to DTC, which in turn is obligated to remit such principal and interest to DTC participants for subsequent disbursement to the Beneficial Owners of th e Bonds as described under “Book-Entry Bonds” and Appendix C – „DTC & BOOK-ENTRY SYSTEM” herein. Redemption Provisions Optional Redemption – The Bonds maturing on or after December 1, 20 20 are subject to redemption prior to their stated maturity dates, at the option of the City, at any time on or a fter June 1, 2020, as a whole or in part (within one or more maturities selected by the City and randomly within a maturity in such manner as the Bond Registrar shall determine), at par plus accrued interes t to the date fixed for redemption. For so long as the Bonds are in book-entry form, the selection of Bonds within a maturity to be redeemed and the manner of providing notice of redemption to beneficial owners shall be governed by the Letter of Representation between the City and DTC. If less than all of the principal amount of any Bond is redeemed, upon surrender of that Bond at either of the principal offices of the Bond Registrar, there will be issued to the registered owner, without charge, a new Bond or Bonds, at the opti on of the registered owner, of the same maturity and interest rate in any of the denominations authorized by the Bond Ordinances. Mandatory Redemption – The Bonds maturing on December 1, 2030 are subject to mandatory redemption prior to maturity at the redemption price of 100% of the principal amount thereof (without premium) plus accrued interest to the date fixed for redemption, on December 1, in the years and in the amounts set forth below: 2030 Term Bond Due December 1 Mandatory Redemption (1) * _____________________ * Maturity (1) Preliminary, subject to change. If the City redeems under the optional redemption provisions, purchases in the open market or defeases Term Bonds, the principal amount of the Term Bonds so redeemed, purchased or defeased (irrespective of their actual redemption or purchase prices) will be credited against one or more scheduled mandatory redemption amounts for those Term Bonds. Notice of Redemption So long as the Bonds are in book-entry only form, the Fiscal Agent will notify DTC of an early redemption not less than 30 days prior to the date fixed for redemption, and will provide such information as required by the Letter of Representations betwee n the City and DTC. During any period in which the Bonds are not in book-entry form, unless waived by an owner of the Bonds to be redeemed, notice of any intended redemption of Bonds will be given by the Fiscal Agent on behalf of the City not less than 30 nor more than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the Bond Register at the time the Bond Registrar prepares the notice, as described in the Bond Ordinances. Interest on Bonds called for redemption will cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call. Open Market Purchase The City has reserved the right and option to purchase any o r all of the Bonds in the open market at any time at any price acceptable to the City plus accrued interest to the date of purchase. Failure to Redeem the Bonds If any Bond is not redeemed when properly presented at its maturity or call date, the City wil l pay interest on that Bond at the same rate provided on the Bond from and after its maturity or call date until that Bond is paid in full or until sufficient m oney for its payment in full is on deposit in a special account created by the City for such pur pose. Defeasance of the Bonds If money and/or direct obligations (as defined in chapter 39.53 RCW) are irrevocably set aside in a special account of the Ci ty to effect redemption and retirement of all or a portion of the Bonds, and such amounts (includin g interest earning thereon) are pledged for such purpose, then no further payments need be made into the bond redemption fund of the City for the payment of the principal of and interest on the Bonds, and such Bonds shall cease to be entitled to any lien, benefit or security of the Bond Ordinance except the right to receive the moneys so set aside and pledged, and such Bonds shall be deemed not to be outstanding. Book-Entry Bonds DTC will act as securities depository for the Bonds. The ownership of one fu lly registered Bond for each maturity of the Bonds, as set forth on the inside cover of this Official Statement, each in the aggregate principal amount of such maturity, will be registered in the name of Cede & Co., as nominee for DTC. See Appendix C – “BOOK-ENTRY TRANSFER SYSTEM.” Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC participants or the persons for who m they act as nominees with respect to the Bonds in respect of the accuracy of any records maintained b y DTC (or any successor depository) or any DTC participant, the payment by DTC (or any successor depository) or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice which is permitted or required to be given to registered owners under the Bond Ordinances (except such notices as are required to be given by the City to the Bond Registrar or to DTC (or any successor depository)), or any consent given or other action taken by DTC (or any successor depository) as the registered owner. For so long as any Bonds are held in fully immobilized form under the Bond Ordinance s, DTC or its successor depository will be deemed to be the registered owner for all purposes thereunder, and all references therein to the registered ow ners will mean DTC (or any successor depository) or its nominee and will not mean the owners of any beneficial interest in such Bonds. In the event that the Bonds are no longer in fully immobilized form, interest on the Bonds shall be paid by check or draf t mailed to the registered owners at the addresses for such registered owners appearing on the Bond Register on the 15 th day of the month preceding the interest payment date, and principal of the Bonds will be payable upon presentation and surrender of suc h Bonds by the registered owners at the principal office of the Bond Registrar. Transfer and Exchange Neither the City nor the Bond Registrar shall be required to transfer or exchange Bonds from the record date next preceding a n interest payment date of the Bonds through and including such interest payment date or from the record date next preceding any selection of Bonds to be redeemed or thereafter until the first mailing of any notice of redemption, or to transfer or exchange any Bonds called for redemption. For purposes hereof, record date shall mean in the case of each interest payment date, the Bond Registrar‟s close of business on the 15th day of the month immediately preceding such interest payment date, and, in the case of each redemption, such record date shall be specified by the Bond Registrar in the notice of redemption, provided that such record date shall not be less than 15 calendar days before the mailing of such notice of redemption. For every transfer and exchange of the Bonds, the Benefic ial Owner may be charged a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in relation thereto, and any reasonable fees and expenses of the Bond Registrar and costs incurred in preparing bond certificates. SECURITY FOR THE BONDS The Bonds are limited tax general obligation bonds of the City and are secured by the full faith, credit and resources of the City. The City, as authorized by state law and the Bond Ordinance, has pledged irrevocably for the annual levy and collection of property taxes within the constitutional and statutory limitations provided by law without a vote of the electors , in an amount sufficient, together with other money legally available therefor, to pay principal of and interest on the Bonds. The rights and remedies of anyone seeking enforcement of the Bonds are subject to applicable bankruptcy or insolvency laws or other similar laws generally affecting creditors‟ rights and principles of equity if equitable remedies are sought. The Bond s are not a debt or indebtedness of Snohomish County, the State or any political subdivision thereof other than the City. SOURCES AND USES OF FUNDS Sources of Funds Par Amount of Bonds $6,075,000* Original Issue Premium ________ Total Sources of Funds $_______ Uses of Funds Project Fund $ Refund 2001 Bonds Issuance Expenses and Underwriter's Discount ________ Total Uses of Funds $_______ ______________________ * Preliminary; subject to change TAXING AUTHORITY The following provides a general description of the City‟s taxing authority and limitations, the method of determining the assessed value of real and personal property, tax collection procedures, and tax collection information. The City is authorized to levy both “regular” property taxes and “exces s” property taxes. Regular property taxes, such as the taxes pledged to the payment of the Bonds, are subject to constitutional and statutory limitations as to rates and amounts and commonly are imposed by taxing districts for general municipal purposes, i ncluding the payment of debt service on limited tax general obligation indebtedness, such as the Bonds. Regular property taxes do not req uire voter approval except as described below. Excess property taxes, such as the taxes levied for the payment of voted bonds, are not subject to limitation as to rates or amounts but must be authorized by a 60 percent approving popular vote, as provided in Article VII, Section 2, of the State Constitution and RCW 84.52.052. To be valid, such popular vote must have a minimum voter turnout of 40 percent of the number who voted at the last City general election, except that one -year excess tax levies also are valid if the turnout is less than 40 percent and the measure receives a number of affirmative votes equal to or grea ter than 24 percent of the number who voted at the last City general election. Excess levies may be imposed without a popular vote when ordered by a court to prevent impairment of the obligations of contracts. Regular Property Tax Limitations The authority of a city to levy taxes without a vote of the people for general city purposes, including the payment of debt service on limited tax general obligation indebtedness, such as the Bonds, is subject to the limitations described below. Informatio n relating to regular property tax limitations is based on existing statutes and constitutional provisions. Changes in such laws coul d alter the impact of other interrelated tax limitations on the City. Maximum Rate Limitation. Title 84 RCW authorizes the impositi on of regular tax levies with various statutory maximum levy rates (see “Overlapping Taxing Districts” herein). RCW 84.52.043 allows a city to levy taxes of up to $3.375 per $1,000 of taxable property in the city and RCW 41.16.060 allows an additional $0.225 per $1,000, for any municipal purpose, if not required to fund pension programs. These taxes may be levied without a vote of the people. This limitation is exclusive of a levy for the maintenance of a local improvement guaranty fun d. The One Percent Aggregate Regular Levy Limitation. Article VII, Section 2 of the Washington Constitution, as amended in 1973, limits aggregate regular property tax levies by the State and all overlapping taxing districts, except port districts and pub lic utility districts, to one percent of the true and fair value of property. RCW 84.52.050 provides the same limitation by statute. $5.90/$1,000 Aggregate Regular Levy Limitation. Within the one percent limitation described above, RCW 84.52.043(2) imposes an aggregate limitation on regular tax levies by all taxing districts, other than the State, of $5.90/$1,000 of assessed value, except levies for any port or public utility district; excess levies authorized in Article VII, Section 2 of the State Constitution; and certain levies for acquiring conservation futures, for emergency medical services or care, to finance affordable housing, for crimina l justice purposes, and portions of certain levies imposed by metropolitan park districts, ferry districts and fire protection districts, and for certain county purposes. Uniformity Requirement. Article VII, Section 1 of the Washington Constitution requires that property taxes be levied at a uniform rate upon the same class of property within the territorial limits of a taxing distr ict levying such taxes. It is possible because of different overlapping taxing districts in different areas of the City that the maximum permissible levy under the aggregate l evy limit (described above) might vary within the City. In that event, to compl y with the constitutional requirement for uniformity of taxation, the lowest permissible rate for any part of the City would be applied to the entire City. Prioritization of Levies. RCW 84.52.010 provides that if aggregate levies certified by all taxing districts exceed the aggregate levy limitations described above, levies certified by junior taxing districts are reduced or eliminated in order to bring the aggr egate levy into compliance with the statutory maximum prescribed by RCW 84.52.050 and 84.52.043. RCW 84.52.043 defines “junior taxing districts” as all taxing districts other than the state, counties, road districts, cities, towns, port districts, and public utility districts. The tax levy for unlimited general obligation bonds is a special excess levy approved by the voters and, as such, is not subj ect to the limitations on regular levies described above. The Levy Increase Limitation. The regular property tax increase limitation, chapter 84.55 RCW, limits the total dollar amount of regular property taxes levied by an individual local taxing district such as the City to the amount of such taxes levied in t he highest of the three most recent years multiplied by a limit factor, plus an adjustment to account for taxes on new construction, annexations, improvements and certain other property at the previous year's rate. The limit factor is the lesser of 101 percent of the highest levy in the three previous years (excluding new construction, improvements, and certain other property) or 100 percent plus inflation, unless a greater increase amount is approved by a simple majority of the voters. In addition, RCW 84.55.092 allows the property tax levy to be set at the amount that would be allowed if the tax levy for taxes due in each year since 1986 had been set at the full amount allowed under Chapter 84.55 RCW. This is sometimes referred to as “banked” levy capacity. Since the regular property tax increase limitation applies to the total dollar amount levied rather than to levy rates, increases in the assessed value of all property in the taxing district (excluding new construction, improvements and State -assessed property) which exceed the rate of growth in taxes allowed by the limit factor result in decreased regular tax levy rates, unless voters authorize a higher levy or the taxing district uses banked levy capacity. Decreases in the assessed value of all property in the taxing district (including new construction, improvements and State-assessed property) or increases in such assessed value that are less than the rate of growth in taxes imposed, among other events, may result in increased regular tax levy rates. The tax levy for unlimited tax general obligation bonds are special excess levies approved by a 60 percent majority of the voters, and as such, are not subject to the rate or amount limitations on regular levies described above. Assessed Value The Snohomish County Assessor, or equivalent thereof (the “Assessor”), determines the value of all real and personal property throughout Snohomish County (the “County”) that is subject to ad valorem taxation, except certain utility properties which are valued by the State Department of Revenue. The Assessor is an elected official whose duties and methods of determining value are prescribed and controlled by statute and by detailed regulations promulgated by the State Department of Revenue. For tax purposes, the assessed value of property is 100 percent of its market value. Three approaches may be used to determine real property value: market data, replacement cost and inc ome generating capacity. In the County, all property is subject to revaluation every year based on market value. In addition, at least one-sixth of the real property parcels are visited for an on-site appraisal on an annual basis. The property characteristics and assessed values are listed by the Assessor on the property which is maintained in the Assessor‟s office. The Assessor‟s determinations are subject to revisions by the County Board of Equalization and, for certain property, subject to further revisions by the State Board of Tax Appeals. After all administrative procedures are complete, the values are certified and passed on to the Snohomish County Treasurer and the County Board of Equalization. Overlapping Taxing Districts The overlapping taxing districts within the City have the statutory power to levy regular property taxes at the following rat es subject to the limitations provided by chapter 84.55 RCW and levy excess voter approved property taxes. Representative levy rates for levy code 00110 located entirely within the City, as well as the statutory levy authority of each type of potential overlapping district, are listed below. Levy code 00110 does not include all the property within the City. Representative Levy Rates Statutory Levy Authority (Per $1,000 of Assessed Value) (Per $1,000 of Assessed Value) City of Arlington $1.4448 $3.600 (1) Snohomish County 0.7823 1.800 (2) State Levy for Support Schools 1.9925 3.600 (3) Sno Isle Library 0.4000 0.500 Cascade Valley Hospital (Regular) 0.2936 0.750 Cascade Valley Hospital (Excess) 0.7297 n/a (4) Arlington School District No. 16 3.8953 n/a (5) Total rate for Snohomish County levy code 00110 $9.5382 ___________________ (1) Pursuant to RCW 84.52.043, cities and towns may levy up to $3.375 per $1,000 assessed value. In addition, a city that is annexed into a library district (such as the City) or a fire district may levy up to $3.60 per $1,000 assessed value, reduced by the levies of the library and/or fire district, RCW 84.52.769 and 84.52.712. In addition, RCW 41.16.060 authorized an additional firefighters‟ pension fund levy of up to $0.225 per $1,000 assessed value to be used for pension funding purposes, if required. If not required, based on an actuarial study, this tax may be levied and used for any other municipal purpose. (2) Pursuant to RCW 84.52.043(1), a county may increase its levy from $1.80 per $1,000 to a rate not to exceed $2.475 per $1,000 for general county purposes if (i) the total levies for both the county and any road district within the county do not exceed $4.05 per $1,000 and (ii) no other taxing district has its levy reduced as a result of the increased county tax levy (3) RCW 84.52.043(1). The levy by the State shall not exceed $3.60 per $1,000 assessed value adjusted to the State equalized val ue in accordance with the indicated ratio fixed by the State Department of Revenue to be used exclusively for the support of the common schools. (4) Pursuant to RCW 84.52.052, a public hospital district may levy excess property taxes, which are not subject to limitation, when authorized by a 60% majority popular vote. (5) Washington school districts do not have non-voted regular levy authority. Source: Snohomish County Assessor’s Office. Property Tax Rates and Tax Levies The following tables show the City‟s ad valorem levy rates and dollar amounts levied since 2006. Levy Rates Collection (Dollars per $1,000 of Assessed Value) Year Regular EMS Total 2010 $1.03410 $0.41072 $1.44482 2009 0.97111 0.38532 1.35643 2008 0.97369 0.38682 1.36051 2007 1.11587 0.44374 1.55961 2006 1.25500 0.49719 1.75219 Levy Amounts Collection (Dollars per $1,000 of Assessed Value) Year Regular EMS Total 2010 $2,315,625 $919,701 $3,235,326 2009 2,239,628 888,657 3,128,285 2008 2,180,378 866,197 3,046,575 2007 2,100,395 835,250 2,935,645 2006 1,956,043 774,930 2,730,973 _____________________ Source: Snohomish County Assessor’s Office. TAX COLLECTION Tax Collection Procedures Property taxes are levied in specific amounts, and the rate for all taxes levied for all taxing districts in Snohomish County (the “County”) (including the City) are determined, calculated and fixed by the Assessor based upon the assessed valuation of the property within the various taxing districts. The Assessor extends the taxes to be levied within each taxing district upon a tax roll which contains the total amount of taxes to be so levied and collected and assigns a tax account number to each tax lot. The tax roll is delivered to the County Treasurer by January 15, who bills and collects the taxes as certified. All such taxes are d ue and payable on April 30 of each year, but if the amount due from a taxpayer exceeds fifty dollars, one -half may be paid then and the balance no later than October 31 of that year. Delinquent taxes are subject to interest at the rate of on percent per month u ntil paid. In addition, a penalty of three percent will be assessed on June 1 of the year in which the tax was due; and eight percent on December 1 of the year the tax are due. The method of giving notice of payment of taxes due, accounting for the money collected, the division of the taxes amo ng the various taxing districts, giving notice of delinquency, and collection procedure s are all covered by detailed statutes. The lien for ad valorem property taxes which have been levied prior to the filing of federal tax liens is prior to such federal tax liens. In other respects, and subject to the possible “Homestead Exemption,” the lien for delinquent property taxes is prior to all other liens or encumbrances of any kind on real or personal property subject to taxation. By law, the taxing distric t may commence foreclosure of a tax lien on real property after three years have passed since the first delinquency. Washington State‟s cour ts have not decided whether the Homestead Law (chapter 6.12 RCW) may give the occupying home owner a right in the forced sale of the family residence for delinquent general property taxes to retain the first $125,000 of proceeds of the sale. The State Court of Appeals has held that the homestead exemption applies to the lien for improvement district assessments. The U nited States Bankruptcy Court for the Western District of Washington has held that the homestead exemption applies to the lien for propert y taxes, while the State Attorney General has taken the position that it does not. Tax Collection Record The following is a five-year history of ad valorem tax collections for the City. Percent Collected Collection Regular Ad Valorem Year As of Year Assessed Value (1) Tax Levy of Levy 05/01/10 2010 $2,239,257,103 $3,325,326 41.97% 41.97% 2009 2,306,249,447 3,128,285 95.10 97.05 2008 2,239,293,774 3,046,575 96.22 98.21 2007 1,882,294,666 2,935,645 96.95 99.62 2006 1,558,604,815 2,730,973 97.14 99.91 _____________________ (1) Assessed valuation is based upon 100 percent of actual value. Source: Snohomish County Treasurer’s Office Collection of Other Taxes In addition to its regular property tax levy, the City also collects various other taxes, including a retail sales tax (also known as a “local sales and use tax”), utility taxes and gambling taxes. A table showing historical revenue from these sources is as follows: (1) (2) (3) _____________________ (1) In the 2010 budget, a total of $413,634 in property taxes were budgeted to go directly to the C apital Facilities Building Fund ($292,231) and to the Street Maintenance Fund ($121,403). Those dollars will be deposited into the General Fund and operating transfers will be provided to those funds if needed. (2) In the 2010 budget, a total of $225,298 in property taxes were budgeted to go directly to the Capital Building Facilities Fund ($195,298) and to the Equipment Replacement Fund ($30,000). Those dollars will be deposited into the General Fund and operating transfers will be provided to those funds if needed. (3) In the 2010 budget, a total of $304,237 in property taxes were budgeted to go directly to the Capital Facilities Building Fund ($69,450) and to the Street Maintenance Fund ($234,787). Those dollars will be deposited into the General Fund and operating transfers will be provided to those funds if needed. Source: City of Arlington. Major Taxpayers The following table lists the ten largest taxpayers within the City on the basis of their 2010 assessed valuation. _____________________ Source: Snohomish County Assessor’s Office. AUTHORIZATION OF INDEBTEDNESS The power of the City to contract debt of any kind is controlled and limited by State law. All debt must be set forth in accordance with detailed budget procedures and paid for out of identifiable receipts and revenues. The budget must be balanc ed for each fiscal year. It is unlawful for an officer or employee of the City to incur liabilities in excess of budgetary appropriations. General Obligation Indebtedness Under the Constitution and statutes of the State, the City may incur two types of general obligation indebtedness (including bonds). The two types are primarily differentiated by the limits on the real and personal property taxes which may be collected for the repayment of the indebtedness. Limited tax general obligation indebtedness (such as the Bonds) is payable from taxes upon all the taxable property in the City which may be imposed by the City within the limitations prescribed by State statute without a vote of the people (sometimes referred to as “non-voted debt” or “non-voted bonds” or “councilmanic bonds”). Unlimited tax general obligation indebtedness is payable from taxes without limitation as to rate or amount, imposed upon all taxable property in the City. Unlimited tax indebtedness may be incurred only after approval by 60% of the City voters at an election in which the total vote cast exceeds 40% of the votes cast at the last preceding general election of the City or State. Such unlimited tax indebtedness is sometimes referred to as “voted debt,” “voted bonds” or “unlimited tax bonds.” Bonds issued to refund outstanding general obligation indebtedness of either type may be issued without voter approval. Limits on Amount of General Obligation Indebtedness State statutes limit the total principal amount of all City general obligation indebtedness incurred for “general” purposes, both limited tax and unlimited tax, to 2.5% of the assessed value of taxable property within the City. Within this 2.5% limitation, non - voted indebtedness is further limited to 1.5% of the value of such taxable property. The City is additionally authorized to incur general obligation indebtedness for the following “special” purposes, with voter approval, in the total principal amount of up to the following percentages of the actual value of taxable property within the City: water, artificial light and sewers, 2.5%; open space and park facilities and facilities associated with economic development, 2.5%. The combination of unlimited tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of the City's assessed valuation. The State statutory limits on City general obligation indebtedness described in this section are more restrictive than those contained in the State Constitution. Both the constitutional and statutory debt limits may be exceeded if necessary to meet obligations made mandatory by State law or, if necessary, to maintain the corporate existence of the City. In computing total general obligation indebtedness, the following “assets” may be deducted against the principal amount of indebtedness outstanding: (a) money and investments on deposit in general obligation bond retirement funds; (b) taxes (both current and delinquent) levied for the payment of general obligation indebtedness; and (c) delinquent (but not current) taxes due the general fund. In addition to limits on the total principal amount of general obligation indebtedness described in this section, the Constitution and statutes of the State impose other limitations on the City's levy of taxes upon real and personal property. See “TAXING POWERS AND LIMITATIONS” herein. Authorization of Short-Term Debt Any Washington municipal corporation may borrow money and issue short-term obligations, the proceeds of which may be used for any lawful purpose. Short-term obligations may be issued in anticipation of the receipt of revenues, taxe s, or grants or the sale of (1) general obligation bonds if the bonds may be issued without the consent of the voters or if previously ratified by the voters; (2) revenue bonds if the bonds have been authorized by ordinance or resolution; or (3) local impr ovement district bonds if the bonds have been authorized by ordinance or resolution. These short -term obligations shall be repaid out of money derived from the source or sources in anticipation of which they were issued or from any money legally available for this purpose. Additionally, the City may incur short-term indebtedness in the following ways: first, in an emergency, the Council members may put a plan into effect and authorize indebtedness outside the current budget. All expenditures for emergency purpose shall be paid by warrants from any available money in the fund properly chargeable with such expenditures. If there is insufficient m oney on hand in the fund, the warrants become registered interest-bearing warrants. In adopting the budget for any fiscal year, the Council members shall appropriate funds to retire any outstanding registered warrants issued since the adoption of the last preceding budget. Second, the City may, without a vote of the electors, purchase property on a conditional sales contract if the total contract amount, together with the other non-voted general obligation indebtedness of the City, does not exceed 1.5% of the value of taxable property in the City; any item so purchased must be budgeted for payment in accordance with t he terms of the contract. DEBT INFORMATION COMPUTATION OF DEBT CAPACITY (As of August 18, 2010) Assessed Valuation for 2010 Tax Collections $2,239,257,103 General Purposes $33,588,857 Less: Limited Tax General Obligation Bonds Outstanding (1) (12,232,487) Less: Other Outstanding Limited General Obligation Debt (2) (625,372) Less: The Bonds (3) (6,075,000) Remaining Non-Voted General Purpose Debt Capacity $14,655,998 $55,981,428 Less: Voted Bonds Outstanding 0 Less: Limited Tax General Obligation Bonds Outstanding (1) (12,232,487) Less: Other Outstanding Limited General Obligation Debt (2) (625,372) Less: The Bonds (3) (6,075,000) Remaining Voted and Non-Voted General Purpose Debt Capacity $37,048,569 Utility Purposes $55,981,428 Less: Voted Bonds Outstanding 0 Remaining Voted General Obligation Debt Capacity $55,981,428 Parks & Open Space and Economic Development Purposes $55,981,428 Less: Voted Bonds Outstanding 0 Remaining Voted General Obligation Debt Capacity $55,981,428 _____________________ (1) Includes all outstanding non-voted bonds; excludes the Refunded Bonds. (2) Includes bank notes and interlocal financing agreements. (3) Preliminary; subject to change. Source: City of Arlington BONDED DEBT AND OTHER OUTSTANDING OBLIGATIONS Amount Dated Maturity Amount as of Date Date Issued 08/18/10 SECURED BY THE FULL FAITH AND CREDIT OF THE CITY Non-Voted LTGO Bonds LTGO Bonds, 2001 (1) 10/01/01 10/01/11 $4,400,000 $400,000 LTGO Bond, 2001 04/01/01 04/01/11 464,646 42,932 LTGO Bonds, 2004 05/04/04 12/01/34 7,700,000 7,700,000 LTGO Bond, 2005 01/13/05 12/30/11 346,000 81,353 LTGO Bonds, 2007 06/12/07 12/01/27 3,630,000 3,320,000 LTGO Bond, 2009 05/13/09 06/01/24 720,488 688,202 LTGO Bonds, 2010 (2) 08/18/10 12/01/30 6,075,000 6,075,000 Total LTGO Bonds (2) $23,576,488 $18,307,487 Other Obligations Secured by the General Fund Interlocal Financing Agreement, 2003 07/01/03 06/30/21 $514,238 $414,586 Bank Note, 2006 05/06/06 05/15/11 250,000 177,589 Bank Note, 2007 01/15/07 12/01/10 124,764 33,197 Total Other Obligations Secured by the General Fund (2) $889,002 $625,372 TOTAL NET DIRECT DEBT (2) $24,465,490 $18,932,859 _____________________ (1) Excludes the Refunded Bonds. (2) Preliminary; subject to change. Source: City of Arlington DIRECT AND ESTIMATED OVERLAPPING DEBT (as of August 18, 2010) Limited Tax General Obligation Bonds Outstanding (1) $18,307,487 Other Obligations Secured by the General Fund 625,372 Voted General Obligation Bonds Outstanding (1) 0 (1) (As of May 1, 2010) Net G.O. Net 2010 Percent of Debt Overlapping Assessed Value Overlap Outstanding Debt Snohomish County $94,125,212,678 2.3790194% $350,743,342 $8,344,252 Fire District No. 19 451,967,750 7.4090839% 2,666,526 197,565 Fire District No. 21 988,883,271 0.0520587% 52,389 27 Arlington School District No. 16 3,750,321,413 46.0929298% 48,595,000 22,398,859 Lakewood School District No. 306 2,025,055,289 25.0270969% 7,930,000 1,984,649 Marysville School District No. 25 6,938,865,774 0.0549303% 111,590,000 61,297 Valley General Hospital 3,963,052,480 43.2746019% 46,165,000 19,977,720 _____________________ (1) Includes all outstanding non-voted and voted bonds (excluding the Refunded Bonds) and the Bonds. Preliminary, subject to change. Source: City of Arlington and King County Department of Assessments and Division of Financial Management. BONDED DEBT RATIOS (Including the Bonds) 2009 Assessed Valuation for 2010 Collection $2,239,257,103 2009 City Population 17,150 Direct Debt as a Percentage of Assessed Valuation 0.85% Direct & Overlapping Debt as a Percentage of As sessed Valuation 3.21% Per Capita Assessed Valuation $130,569 Per Capita Direct Debt $1,104 Per Capita Direct & Estimated Overlapping Debt $4,192 ________________________ Source: City of Arlington and King County Treasurer Offices. SCHEDULE OF LIMITED TAX GENERAL OBLIGATION BOND DEBT SERVICE Total Principal Interest Principal Interest Debt Service 2010 430,732$ 286,223$ 60,000$ 15,256$ 792,211$ 2011 566,786 571,212 100,000 239,283 1,477,281 2012 223,177 552,306 385,000 226,700 1,387,183 2013 231,663 542,620 395,000 215,200 1,384,483 2014 245,327 532,557 410,000 203,425 1,391,309 2015 254,179 521,905 415,000 191,150 1,382,234 2016 263,228 509,105 435,000 179,525 1,386,858 2017 282,486 495,847 450,000 162,225 1,390,558 2018 291,963 481,620 475,000 144,392 1,392,975 2019 306,670 468,913 495,000 125,525 1,396,108 2020 316,619 455,564 515,000 105,858 1,393,041 2021 331,823 441,760 530,000 85,358 1,388,941 2022 691,063 427,289 130,000 61,492 1,309,844 2023 718,998 396,324 140,000 56,358 1,311,680 2024 723,145 363,815 145,000 50,792 1,282,752 2025 720,000 331,534 150,000 45,025 1,246,559 2026 750,000 298,678 155,000 39,188 1,242,866 2027 785,000 264,428 160,000 32,250 1,241,678 2028 585,000 228,578 170,000 25,125 1,008,703 2029 610,000 200,790 175,000 17,512 1,003,302 2030 640,000 171,205 185,000 9,712 1,005,917 2031 670,000 140,165 - - 810,165 2032 705,000 107,670 - - 812,670 2033 740,000 73,478 - - 813,478 2034 775,000 37,588 - - 812,588 12,857,859$ 8,901,174$ 6,075,000$ 2,231,351$ 30,065,384$ The Bonds (2) Outstanding Bonds (1) ________________________ (1) Includes all outstanding bonds, excluding the Refunded Bonds and the Bonds. (2) Preliminary; subject to change. DEBT PAYMENT RECORD The City has always promptly met principal and interest payments on outstanding bonds when due. Additionally, no refunding bonds have been issued for the purpose of preventing an impending default. FUTURE FINANCING The City does not anticipate issuing additional debt in 2010 at this time . STATEMENT OF GENERAL FUND REVENUES AND EXPENDITURES (Fiscal Year Ending December 31) Unaudited Audited Audited Audited Audited 2009 2008 2007 2006 2005 Beginning Net Cash & Investments $267,121 $452,007 $547,789 $421,128 $765,662 Revenues Taxes $7,239,817 $7,496,817 $7,583,638 $7,311,685 $6,398,777 Licenses & permits 281,639 368,856 406,428 464,395 537,997 Intergovernmental 594,619 603,707 573,275 488,182 422,394 Charges for services 1,561,908 1,715,365 1,490,315 272,943 336,439 Fines & forfeits 314,546 297,204 240,813 197,752 198,394 Miscellaneous 35,480 28,398 156,717 35,795 26,062 Other Financing Sources 1,636,856 671,698 9,942 1,425,093 1,290,451 Total revenues & other sources 11,664,865 11,182,045 10,461,127 10,195,845 9,210,514 Total resources $11,931,986 $11,634,052 $11,010,916 $10,616,973 $9,976,176 Operating Expenditures General government $3,275,180 $3,359,850 $3,004,316 $2,460,728 $2,097,926 Security – persons/property 6,375,424 5,871,624 5,688,355 5,263,848 5,065,976 Physical environment 22,646 29,009 22,077 24,815 110,006 Economic environment 1,120,273 1,357,858 1,195,255 1,311,714 1,131,516 Culture & recreation 616,884 679,402 712,894 147,450 124,810 Total operating expenditures $11,410,407 $11,297,742 $10,622,898 $9,208,555 $8,530,234 Capital outlay 51,732 63,541 34,576 9,891 109,792 Total expenditures $11,462,139 $11,361,284 $10,657,473 $9,218,446 $8,640,025 Other financing uses 249,149 45,989 3,000 965,767 1,034,221 Total expenditures and other uses $11,711,288 $11,407,272 $10,660,473 $10,184,213 $9,674,246 Excess (deficit) of resources over uses $220,698 $226,780 $350,443 $432,760 $301,930 Non-revenues 255,577 310,426 305,747 298,891 298,337 Non-expenditures 276,479 270,086 204,183 181,862 179,139 Ending Net Cash & Investments $199,796 $267,121 $452,007 $549,789 $421,128 ________________________ Source: City of Arlington. ANTICIPATED FINANCIAL RESULTS – YEAR END 2009 The City anticipates general government revenues for 2009 to be approximately $11,931,986 or 1.01% lower than its final amended budget, which was amended on December 21, 2009. The general government fund balance is expected to be $596,600 in accordance with the City‟s adopted fund balance policy. GENERAL FUND BUDGET OF THE CITY PROPOSED BUDGET FOR 2010 AND FINAL BUDGET 2009 (Fiscal Year Ending December 31) Proposed Final 2010 2009 Beginning fund balance (1) $940,000 $267,120 Revenues Taxes $7,447,584 $7,239,817 Licenses & permits 316,225 281,639 Intergovernmental 661,832 594,619 Charges for services 1,601,910 1,561,908 Fines & forfeitures 287,000 314,546 Miscellaneous Revenues 9,400 35,480 Other Financing Sources 114,250 1,636,857 Non-revenues 219,600 255,577 Total resources $11,597,801 $12,187,563 Operating Expenditures General government services $2,880,425 $3,275,180 Security of persons &property 6,407,614 6,375,424 Physical environment 28,500 22,646 Economic environment 947,779 1,120,273 Culture & recreation 184,393 616,884 Capital outlay 134,635 51,732 Debt service 0 0 Ending fund balance 94,974 199,796 Total expenditures $10,677,820 $11,661,935 Non-expenditures 160,000 276,479 Other financing uses 759,481 249,149 Total uses $11,597,801 $12,187,563 ________________________ (1) Estimated prior to year end. Source: City of Arlington. CITY PROFILE Government Organization The City of Arlington is a non-charter, code city incorporated in 1903. The City encompasses an area of 8.2 square miles in northwestern Snohomish County along Interstate 5 and had a 2009 population of approximately 17,150. The City operates under the laws of the State of Washington applicable to a code city with a Mayor-Council form of government. City elected officials consists of the Mayor and seven council members. The six Council members are elected to four-year terms, as is the Mayor. The seventh member is at-large and elected to a two-year term. Council members serve staggered terms. The Council is responsible, among other things, for passing ordinances and resolutions, adopting the budget, appointing committees, and adopting general policies and goals for the City. The Mayor appoints, subject to Council approval, a City Administrator who serves as chief administrator of the City and oversees the entire City government under the direction of the Mayor and the policies of the Council. All City department managers report to the City Administrator. The City is a general-purpose government and provides public safety, fire prevention, street improvement, parks and recreation, health and social services, and general administrative services. In addition the City operates facilities for water supply/treatment/distribution, sewage collection/treatment, storm water (drainage) collection and a municipal airport. Other local governments provide public education and library services. The Council holds regular meetings the first and third Mondays of each month and workshop meetings on the second and fourth Mondays, and special meetings as needed. All meetings are open to the public as provided by law and agenda items are prepared in advance. Brief resumes of the current Mayor, Council members and selected administrative officials follow. Margaret Larson, Mayor. Ms. Larson was elected Mayor in November 2003 and took office on January 1, 2004. She retired as Business Manager for the Arlington School District in 2003. She is a lifelong resident of Arlington. Her current term expires on January 1, 2012. Allen Johnson, City Administrator. Mr. Johnson was appointed as City Administrator in May, 2005. Mr. Johnson holds a Masters Degree in Administration from the University of Missouri and the University of Colorado. Mr. Johnson has worked in public administration for over 30 years in the states of Colorado, Montana and now Washington. Kristin Banfield, City Clerk. Mrs. Banfield was appointed City Clerk in November 2009. She served as City Administrator from January 2001 through June 2004, and also served as Assistant to the Administrator. She holds a Bachelor of Science, Public Administration from the University of Southern California. Jim Chase, Finance Director. Mr. Chase was appointed Finance Director in November, 2009. He was previously with the City of Pasco, Washington for over 22 years, the past 10 years as Finance Manager. He attended Whitworth College in Spokane, Washington. Labor Relations The City has 152 full-time employees (“FTEs”). Police and fire employees are represented by two bargaining units and are employed under provisions of negotiated contracts. The City enters into written bargaining agreements with each bargaining organization. Agreements contain provisions on such matters as salaries, vacation, sick leave, medical and dental insurance, working conditions, and grievance procedures. The Fire union contract is in place until December 31, 2010. The Police union contract is currently in negotiations with the City. That contract expired at the end of 2009. The City strives to be fair with all employees, consistent with all applicable State laws, to ensure equity, and promote labor relation policies mutually beneficial to management and employees. The City negotiates labor contracts with support from a consultant. City officials consider all current labor relations to be satisfactory. Bargaining Unit Membership Expiration Date ____________________ * In negotiations. Retirement Plans Substantially all full-time and qualifying part-time employees participate in one of the following statewide local government retirement systems administered by the Washington State Department of Retirement Systems, under cost -sharing, multiple- employer public employee retirement systems. Actuarial information is on a system-wide basis. Police officers and firefighters are covered by the Law Enforcement Officers and Fire Fighters Retirement System (“LEOFF”). Other City employees are covered by the Public Employees‟ Retirement System (“PERS”). Contributions to the systems by both employee and employer are based upon gross wages covered by plan benefits. PERS and LEOFF participants who joined the system by September 30, 1977 are Plan 1 members. Those PERS participants who joined on or after October 1, 1977 are Plan 2 members, unless they exercise an option to transfer to Plan 3. PERS participants joining on or after September 1, 2002 have the irrevocable option of choosing membership in PERS Plan 2 or PERS Plan 3. LEOFF participants who joined on or after October 1, 1977 are Plan 2 members. The City contributed $335,084 to PERS and $245,794 to LEOFF in 2009 for all of the City‟s employees that are covered under PERS and LEOFF. The following tables outline the contribution rates of employees and employers under PERS and LEOFF. PERS Contribution Rates as of July 1, 2009 (1) 5.31% 5.31% 5.31% 6.00% 3.90% Variable (2) _________________ (1) Includes a 0.16% administration fee. (2) Rates vary from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member. LEOFF Contribution Rates as of July 1, 2009 (1)0.16% 5.24% 0.00 8.46 N/A 3.38 _________________ (1) Includes a 0.16% administration fee. While the City‟s contributions in 2009 represent its full current liability under the Systems, any unfunded pension benefit obligations could be reflected in future years as higher contribution rates. It is expected that the contribution rates for employees and employers in the PERS Plans 2 and 3 and PSERS Plan 2 will increase in the coming years. The State Actuary‟s website (which is not incorporated into this Official Statement by reference) includes information regarding the values and funding l evels of these retirement plans. Volunteer Firefighters Relief and Pension Fund. The Volunteer Firefighters Relief and Pension Fund System is a cost sharing multiple employer retirement system, which was created by the State Legislature in 1945 under Chapter 41.16 RCW. It provides pens ion, disability and survivor benefits. Membership in the system requires service with a fire department of an electing municipali ty of the State (except those employees covered by LEOFF). The system is funded through member contributions of $30 per year, employer contributions of $30 per year, and 40% of the Fire Insurance Premium Tax. Members do not earn interest on their contributions. However, they may elect to withdraw their contribution upon termination. Deferred Compensation. The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan permits employees to defer a portion of their salary until future years. The deferred compensation is not available to employees or their beneficiaries until termination, retirement, or unforeseeable emergency or upon death. Other Post-Employment Benefits The City provides lifetime medical care for seven LEOFF 1 retirees, as required by Chapter 41.26 RCW. The City provides medical insurance and reimbursements for all necessary hospital, medical and nursing care expenses not payable by worker‟s compensation, social security, insurance provided by another employer, other pension plan or any other similar source are covered. Medical insurance for the retirees is provided by the City‟s employee medical insurance program. Direct payment is made for other retiree medical expenses not covered by standard medical plan benefits provisions. The City also pays the Medicare premium for qualifying LEOFF 1 retirees as outlined in Chapter 41 RCW. The cost of this premium of approximately $90 per month in 2009 is offset by a lower insurance premium. The City‟s funding policy for these benefits is based upon pay -as- you-go financing requirements. The City‟s annual required contribution for fiscal year 2009 was $99,079. Insurance The City is a member of the Washington Cities Insurance Authority (“WCIA”) of Washington and its insurance pool (the “Pool”). WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment and administrative expenses. WCIA retains the right to additionally assess the membership for any finding shortfall. WCI A offers a combination of self-insurance and standard insurance to cover liability and property risks and provides related risk management services. Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, au tomobile, police professional, public officials errors and omissions, stop gap and employee benefits liability. Limits are $4 million per occu rrence in the self insured layer, $16 million per occurrence in the reinsured excess layer. The excess layer is i nsured by the purchase of reinsurance and insurance and is subject to aggregate limits. Total limits are $20 million per occurrence subject to aggreg ate and sub-limits in the excess layer. The Board of Directors determines the limits and terms of the co verage annually. Accounting and Budgeting Policies The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, as appropriate. The City's resources are allocated to and accounted for in individual funds depending on their intended purpose. Annual appropriated budgets are adopted at the fund level, except in the general fund, where expenditures are adopted at the department level. The budgets constitute the legal authority for expenditures at that level. Annual appropriations for all fu nds lapse at the fiscal period end. The Finance Director is authorized to transfer budgeted amounts between departments within any fund/object with departments; however, any revisions that alter the total expenditures of a fund must be approved by the City Council. The City Council approves all expenditures for payroll and claims. Auditing of City Finances Accounting systems and budgetary controls are prescribed by the Office of the State Auditor in accordance with RCW 43.09.200 and RCW 43.09.230. State statutes require audits for cities to be conducted by the Office of the State Auditor. The City complies with the systems and controls prescribed by the Office of the State Auditor and establishes procedures and records which reasonably assure safeguarding of assets and the reliability of financia l reporting. The State Auditor is required to examine the affairs of cities. The City is audited annually. The examination must include, among other things, the financial condition and resources of the City, whether the laws and constitution of the State are being complied with, and the methods and accuracy of the accounts and reports of the City. The State Auditor completed the annual audit of the City‟s general financial statements for the year ended December 31, 2008 and concluded that the financial statements present fairly, in all material respects, the financial position of the City as of that date. See Appendix A. The City‟s year ended December 31, 2009 audit is in process. Authorized Investments Chapter 35.39 RCW limits the investment by citie s and towns of its inactive funds or other funds in excess of current needs to the following authorized investments: United States bonds; United States certificates of indebtedness; bonds or warrants of the S tate and any local government in the State; its own bonds or warrants of a local improvement district which are within the protection of the local improvement guaranty fund law; and any other investment authorized by law for any other taxing district or the S tate Treasurer. Under chapter 43.84 RCW, the State Treasurer may invest in non-negotiable certificates of deposit in designated qualified public depositories; in obligations of the US government, its agencies and wholly owned corporations; in bankers‟ acceptances; in commercial paper; in the obligations of the federal home loan bank, federal national mortgage association and other government corporations subject to statutory provisions and may enter into repurchase agreements. Utility revenue bond s and warrants of any city and bonds or warrants of a local improvement district are also eligible investments (RCW 35.39.030). Money available for investment may be invested on an individual fund basis or may, unless otherwise restricted by law, be commingled within one common investment portfolio. All income derived from such investment may be either apportioned to and used by the various participating funds or for the benefit of the general government in accordance with city ordinances o r resolutions. Funds derived from the sale of bonds or other instr uments of indebtedness will be invested or used in such manner as the authorizing ordinances, resolutions or bond covenants may lawfully prescribe. State Local Government Investment Pool. The State Treasurer‟s Office administers the Washington State Local Government Investment Pool (the “LGIP”), a fund that invests money on behalf of more than 450 cities, counties and special taxing distri cts. The LGIP has approximately $8.5 billion under investment as of April 2010. In its management of LGIP, the State Treasurer is required to adhere, at all times, to the principles appropriate for the prudent investment of public finds. These are, in pr iority order, (i) the safety of principal; (ii) the assurance of sufficient liquidity to meet cash flow demands; and (iii) to attain the highest possible yield within the constraints of the first two goals. Historically, the LGIP has had sufficient liquidity to meet al l cash flow demands. The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool which provides it s participants the opportunity to benefit from the economies of scale inherent in pooling. It is also intended to offer participants increased safety of principal and the ability to achieve a higher investment yield than would otherwise be available to them. The pool is restricted to investments with maturities of one year or less, and the average life typically is less than 90 days. Investments permitted under the pool‟s guidelines include U.S. government and agency securities, bankers‟ acceptances, hig h quality commercial paper, repurchase and reverse repurchase agreements, motor vehicle fund warrants, and certificates of deposit issued by qualified Washington State depositories. Authorized Investments for Bond Proceeds. In addition to the eligible investments discussed above, bond proceeds may also be invested in mutual funds with portfolios consisting of U.S. government and guaranteed agency securities with average maturities of les s than four years; municipal securities rated in one of the four hig hest categories; and money market funds consisting of the same, so long as municipal securities held in the fund(s) are in one of the two highest rating categories of a nationally recognize d rating agency. Bond proceeds may also be invested in shares of m oney market funds with portfolios of securities otherwise authorized by law for investment by local governments (RCW 39.59.030). Cash Management and Investment Practices. The City adopted an investment policy in 2005. It is the policy of the City of Arlington to invest all of its surplus funds for all funds of the City to maximize yield while preserving security of principal and meeting the City‟s cash flow requirements. It is the objective of the City that all funds of the City be invested in accordance with the Revised Code of Washington (RCW) Chapter 35.39, the policies of the City and written administrative procedures. The City‟s investment portfolio shall be managed in a manner to attain a market rate of return throughout budgetary and economic cycles while preserving and protecting capital in the overall portfolio. Funds held for future capital projects (i.e., bond proceeds), whenever possible, are to be invested to produce enough income to offset increases in construction costs due to inflation. Where possible, prepayment funds for long-term debt service are to be invested to ensure a rate of return at least equal to the interest being paid on the bonds. As of December 31, 2009, the market value of the City‟s investment portfolio totaled $21,390,136, as follows: Type of Investment Balance LGIP $11,461,060 US Government Securities 4,998,333 Certificates of Deposit 4,930,743 Total $21,390,136 GENERAL AND ECONOMIC INFORMATION Incorporated in 1903, the City is located in northern Snohomish County approximately 10 miles north of Everett and 40 miles north of Seattle. The City limits cover an area of approximately 2.2 square miles, and is roughly bounded by the Stillaguamish River and its flood plain on the north-northwest; I-5 on the west; 164th Street N.E. to 67th Avenue then 172nd Street on the south; and by SR-9 and the South Fork Stillaguamish flood plain on the east. The City of Marysville lies to the south and the Tulalip Indian Reservation to the southwest. Further east up the Stillaguamish Valley is the Town of Darrington. The City and the immediate area is primarily suburban and rural residential with supporting retail and commercial enterprises. Light industrial and manufacturing businesses are located in the central portions of the City around the city- owned Arlington Airport. Unlike many small towns, the City is an employment center with approximately 2.2 jobs per household. The City has experienced continued growth over the last twenty years, increasing in population by over 450% since 1990. Arlington‟s 2009 population is 17,150 and is expected to double by 2025. People and businesses are drawn to the area by the availability of suitable property and accessibility to water and sewer services. Population Historical populations of the City and Snohomish County is shown as follows. Year City of Arlington Snohomish County ________________________ Source: Washington State Office of Financial Management. Largest Employers The following tables provides a list of the major employers in the City and Snohomish County. CITY OF ARLINGTON – MAJOR EMPLOYERS Employer Service/Product Employees Cascade Valley Hospital Healthcare 430 Angel of the Winds Casino Casino and restaurant 260 Aerospace Manufacturing Aircraft parts and frames 240 Masco Services Group Corp. Dry wall contractors 200 Safeway Retail grocer 190 Weyerheuser Hardwoods Inc. Hardwood dimension – flooring mills 170 ABW Technologies Inc. Steel – structural manufacturing 150 Lowe‟s Retail home improvement center 150 UPS Courier services 149 Crown Distributing Co. Inc. Wholesale beer and ale 130 SNOHOMISH COUNTY – MAJOR EMPLOYERS Employer Service/Product Employees The Boeing Co. Aircraft assembly 32,000 Naval Station Everett U.S. Military 6,000 Providence Everett Medical Center Healthcare 3,200 Premera Blue Cross Health insurer 3,200 Tulalip Tribes Enterprises Real estate, retail, gaming 3,020 Snohomish County County government 2,965 State of Washington State government 2,800 Everett School District Education 1,700 Phillips Medical Systems Ultrasound technology 1,600 VERIZON Northwest Inc. Telecommunications 1,500 _______________________ Source: Snohomish County Economic Development Council Economic Data Following are additional economic indicators for the City, Snohomish County and the State of Washington. CITY OF ARLINGTON BUILDING PERMITS 2010 (1) $913,632 $17,387,012 $18,300,644 2009 1,246,972 13,343,133 14,590,105 2008 10,093,410 44,166,433 54,259,843 2007 16,826,880 15,495,353 32,322,233 2006 22,512,000 22,819,521 53,350,966 2005 29,205,000 8,074,747 54,035,413 ________________________ (1) Data through April 2010. Source: City of Arlington Building Department. RESIDENT CIVILIAN LABOR FORCE AND EMPLOYMENT WASHINGTON STATE AND SNOHOMISH COUNTY 2010(1) 2009 2008 2007 2006 2005 State of Washington Total Labor Force 3,520,650 3,528,710 3,476,370 3,390,410 3,317,390 3,255,530 Total Employment 3,175,560 3,214,500 3,290,090 3,235,960 3,154,420 3,075,970 Total Unemployment 345,090 314,210 186,280 154,450 162,970 179,560 % of Labor Force 9.8% 8.9% 5.4% 4.6% 4.9% 5.5% Snohomish County Total Labor Force 384,310 383,170 373,460 365,840 359,650 347,140 Total Employment 346,240 346,580 353,400 350,350 343,380 329,440 Total Unemployment 38,070 36,590 20,060 15,500 16,270 17,700 % of Labor Force 9.9% 9.5% 5.4% 4.2% 4.5% 5.1% ____________________ (1) Average through April 2010, most recent available. Not seasonally adjusted. Source: State of Washington Employment Security Department. NONAGRICULTURAL WAGE AND SALARY EMPLOYMENT IN SNOHOMISH COUNTY 2010(1) 2009 2008 2007 2006 2005 Mining, Logging, and Construction 17,000 18,100 22,700 25,000 22,000 19,800 Manufacturing 51,700 52,800 55,400 53,900 48,400 44,500 Trade, Transportation and Utilities 41,800 42,700 45,200 44,700 41,300 39,100 Information 4,700 4,900 5,500 5,900 5,200 4,100 Financial Activities 11,100 11,500 12,500 13,200 13,100 12,900 Professional and Business Services 19,800 20,800 22,700 23,200 20,300 19,100 Education and Health Services 26,900 26,100 25,200 24,100 22,500 21,500 Leisure and Hospitality 22,000 22,600 23,700 23,600 22,000 20,600 Other Services 8,800 8,900 9,000 8,800 8,500 9,000 Government 38,600 38,800 38,100 36,700 36,400 36,500 Total Nonfarm(2) 242,300 247,200 259,900 259,100 239,600 227,000 ______________________ (1) Average through April 2010. (2) Detail may not add to indicate totals due to rounding. Excludes proprietors, agriculture, self-employed, unpaid family, domestic workers and military. Includes all full and part-time wage and salary workers receiving pay during the period including the 12th of the month by place of work. Source: Washington State Employment Security Department, labor Market and Economic Analysis Branch TAXABLE RETAIL SALES 2009 2008 $334,207,270 375,108,811 $9,244,408,434 10,320,564,762 2007 439,415,449 11,209,498,657 2006 442,000,556 10,438,479,556 2005 418,005,196 9,292,804,838 _______________________ Source: Washington State Department of Revenue. PERSONAL INCOME 2008(1) $29,200,407 $42,610 $280,677,561 $42,747 2007 28,257,248 41,813 271,007,842 41,919 2006 25,577,967 38,542 252,022,976 39,550 2005 23,200,827 35,736 230,001,881 36,734 2004 21,632,183 33,830 222,378,678 35,959 ________________________ (1) Most recent available. Source: U.S. Department of Commerce, Bureau of Economic Analysis MEDIAN HOUSEHOLD INCOME 2009 (1) $60,353 $52,413 2008 (1) 62,071 54,086 2007 65,359 55,771 2006 66,089 56,808 2005 63,454 54,618 ______________________ (1) Figures for 2008 are estimates, figures for 2009 are projected and all are presented in current dollars. Source: Washington State Office of Financial Management. INITIATIVE AND REFERENDUM Under the State Constitution, the voters of the State have the ability to initiate legislation and modify existing legislation through the powers of initiative and referendum, respectively. The initiative power in Washington may not be used to amend the State Constitution. Initiatives and referenda are submitted to the voters upon rece ipt of a petition signed by at least 8% (initiatives) and 4% (referenda) of the number of voters registered and voting for the office of Governor at the preceding regular gubernatoria l election. Any law approved in this manner by a majority of the voters may not be amended or repealed by the Legislature within a period of two years following enactment, except by a vote of two-thirds of all the members elected to each house of the Legislature. After two years, the law is subject to amendment or repeal by t he Legislature in the same manner as other laws. TAX EXEMPTION Exclusion From Gross Income. In the opinion of Bond Counsel, under existing federal law and assuming compliance with applicable requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to the issue date of the Bonds, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals. Continuing Requirements. The City is required to comply with certain requirements of the Code after the date of issuance of the Bonds in order to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes, including, without limitation, requirements concerning the qualified use of Bond proceeds and the facilities financed or refinanced with Bond proceeds, limitations on investing gross proceeds of the Bonds in higher yielding investments in certain circumstances, and the requirement to comply with the arbitrage rebate requirement to the extent applicable to the Bonds. The City has covenanted in the Bond Ordinance to comply with those requirements, but if the City fails to comply with those requirements, interest on the Bonds could become taxable retroactive to the date of issuance of the Bonds. Bond Counsel has not undertaken and does not undertake to monitor the City‟s compliance with such requirements. Corporate Alternative Minimum Tax. While interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, under Section 55 of the Code, tax-exempt interest, including interest on the Bonds, received by corporations is taken into account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicable to corporations (as defined for federal income tax purposes). Under the Code, alternative minimum taxable income of a corporation will be increased by 75% of the excess of the corporation's adjusted current earnings (including any tax-exempt interest) over the corporation's alternative minimum taxable income determined without regard to such increase. A corporation's alternative minimum taxable income, so computed, that is in excess of an exemption of $40,000, which exemption will be reduced (but not below zero) by 25% of the amount by which the corporation's alternative minimum taxable income exceeds $150,000, is then subject to a 20% minimum tax. A small business corporation is exempt from the corporate alternative minimum tax for any taxable year beginning after December 31, 1997, if its average annual gross receipts during the three-taxable-year period beginning after December 31, 1993, did not exceed $5,000,000, and its average annual gross receipts during each successive three-taxable-year period thereafter ending before the relevant taxable year did not exceed $7,500,000. Tax on Certain Passive Investment Income of S Corporations. Under Section 1375 of the Code, certain excess net passive investment income, including interest on the Bonds, received by an S corporation (a corporation treated as a partnership for most federal tax purposes) that has Subchapter C earnings and profits at the close of the taxable year may be subject to federal income taxation at the highest rate applicable to corporations if more than 25% of the gross receipts of such S corporation is passive investment income. Foreign Branch Profits Tax. Interest on the Bonds may be subject to the foreign branch profits tax imposed by Section 884 of the Code when the Bonds are owned by, and effectively connected with a trade or business of, a United States branch of a foreign corporation. Possible Consequences of Tax Compliance Audit. The Internal Revenue Service (the “IRS”) has established a general audit program to determine whether issuers of tax-exempt obligations, such as the Bonds, are in compliance with requirements of the Code that must be satisfied in order for the interest on those obligations to be, and continue to be, excluded from gross income for federal income tax purposes. Bond Counsel cannot predict whether the IRS will commence an audit of the Bonds. Depending on all the facts and circumstances and the type of aud it involved, it is possible that commencement of an audit of the Bonds could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of its ultimate outcome. The Bonds Are “Qualified Tax-Exempt Obligations” for Financial Institutions. Section 265 of the Code generally provides that 100% of any interest expense incurred by banks and other financial institutions that is allocable to tax -exempt obligations acquired after August 7, 1986, will be disallowed as a tax deduction. However, if the tax-exempt obligations are obligations other than private activity bonds, are issued by a governmental unit that, together with all entities subordinate to it, does not reasonably ant icipate issuing more than $30,000,000 of tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) in the current calendar year, and are designated by the governmental unit as “qualified tax -exempt obligations,” only 20% of any interest expense deduction allocable to those obligations will be disallowed. The City is a governmental unit that, together with all subordinate entities, reasonably anticipates issuing less than $30,00 0,000 of tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) during the current calendar year, and has designated the Bonds as “qualified tax -exempt obligations” for purposes of the 80% financial institution interest expense deduction. Therefore, only 20% of the interest expense deduction of a financial institution allocable to the Bonds will be disallowed for federal income tax purposes. Reduction of Loss Reserve Deductions for Property and Casualty Insurance Companies. Under Section 832 of the Code, interest on the Bonds received by property and casualty insurance companies will reduce tax deductions for loss reserves otherwise available to suc h companies by an amount equal to 15% of tax-exempt interest received during the taxable year. Effect on Certain Social Security and Retirement Benefits. Section 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take receipts or accruals of interest on the Bonds into account in determi ning gross income. Other Possible Federal Tax Consequences. Receipt of interest on the Bonds may have other federal tax consequences as to which prospective purchasers of the Bonds may wish to consult their own tax advisors. LITIGATION There is no litigation of any kind now pending or, to the knowledge of the City, threatened to restrain or enjoin the issuance or delivery of the Bonds or in any manner questioning the proceedings and authority under which the Bonds are issued or affectin g the ability of the City to pay the principal of or the interest on the Bonds. CONTINUING DISCLOSURE UNDERTAKING Basic Undertaking to Provide Annual Financial Information and Notice of Material Events . To assist the Underwriter in meeting the requirements of United States Securities and Exchange Commission (“SEC”) Rule 15c2 -12(b)(5) (the “Rule”), as applicable to a participating underwriter for the Bonds, the City will undertake (the “Undertaking”) for the benefit of holders of the Bonds to provide or cause to be provided, either directly or through a designated agent, to the Municipal Securities Rulemaking Board (“MSRB”) in an electronic format as prescribed by the MSRB, accompanied by identifying information as prescribed by the MSRB, annual financial information and operating data of the type included in this Official Statement as generally described below (“annual financial information”); and to the MSRB timely notice of the occurrence of any of the following events with respect to the Bonds (as currently defined as follows or as redefined by MSRB in the future), if material: (i) principal and interest payment delinquencies; (ii) non payment related defaults; (iii) unscheduled draws on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on credit enhancements reflecting financial difficulties; (v) substitution of credit or liquidity providers, or their failure to perform; (vi) adverse tax opinions or events affecting the tax exempt status of the Bonds; (vii) modifications to rights of holders of the Bonds; (viii) Bond calls (other than scheduled mandatory redemptions of Term Bonds for which notice is given pursuant to Exchange Act Release 34 -23856); (ix) defeasances; (x) release, substitution, or sale of property securing repayment of the Bonds; and (xi) rating changes. The City also will provide to the MSRB timely notice of a failure by the City to provide required annual financial information on or before the date specified below. Type of Annual Financial Information Undertaken to be Provided. The annual financial information that the City undertakes to provide will consist of (i) annual financial statements prepared (except as otherwise noted therein) in accordance with generally accepted accounting principles promulgated by the Government Accounting Standards Board, as such principles may be changed from time to time, which statements will not be audited, except however, that if and when audited financial statements are otherwi se prepared and available to the City they will be provided; (ii ) principal amount of outstanding Parity Bonds and debt service coverage; (iii) rates for the System and the number of customers of the System; and will be provided to the MSRB not later than the last day of the ninth month after the end of each fiscal yea r of the City (currently, a fiscal year ending December 31 as such fiscal year may be changed as required or permitted by State law, commencing with the City‟s fiscal year ending December 31, 2010). The annual financial information may be provided in a single or multiple documents and may be incorporated by specific reference to documents available to the public on the Internet website of the MSRB or filed with the SEC. Amendment of Undertaking. The Undertaking is subject to amendment after the primary off ering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, rating agency, o r the MSRB, under the circumstances and in the manner permitted by the Rule and with an opin ion of bond counsel. The City will give notice to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information t o be provided, the annual financial information containing the amended financial information will include a narrative explanation of the eff ect of that change on the type of information to be provided. Termination of Undertaking. The City‟s obligations under the Undertaking shall terminate upon the legal defeasance, prior redemption, or payment in full of all of the Bonds. In addition, the City‟s obligations under the Undertaking shall terminat e if those provisions of the Rule that require the City to com ply with the Undertaking are invalid, have been repealed retroactively, or otherwise do not apply in respect of the Bonds for any reason, as confirmed by an opinion of nationally recognized bond couns el to the City, and the City provides timely notice of such termination to the MSRB. Remedy for Failure to Comply with Undertaking. No failure by the City or other obligated person to comply with the Undertaking will constitute a default in respect of the Bonds. The sole remedy of any holder or beneficial own er of a Bond will be to seek an order of specific performance from an appropriate court to compel the City or other obligated person to comply with the Undertaking . Compliance with Continuing Disclosure Undertakings The City has complied with all prior undertakings under the Rule. BOND RATING The City received a rating of “___” from Moody‟s Investors Service (“Moody‟s”). A municipal bond rating reflects a rating agency‟s current assessment of a number of factors relating to the issuer of any debt, includi ng the likelihood of repayment of such debt, the perceived quality of management and administration of the entity, the nature and relative health of the local economy in which the issuer exists and the overall financial condition and operational controls w hich exist for the issuer. The existence of a bond rating does not imply a recommendation by a rating agency to purchase, sell or hold any such security, inasmuch as it does not take into account a number of subjective variables, including the market pric e of any such security or suitability of such security for any particular investor. A credit rating is based on current information furnished by the issuer or obtained by a rating agency from sources which it considers to be reliable. Moody‟s does not perform an audit in connection with any credit rating it may assign and may, on occasion, rely on un-audited financial information. A bond rating may be changed, suspended or withdrawn as a result of changes in, or unavailability of, such information, or for other circumstances. APPROVAL OF BOND COUNSEL Legal matters incident to the authorization, issuance, and sale of the Bonds by the City are subject to the approving legal o pinion of Foster Pepper PLLC, Seattle, Washington, Bond Counsel. The form of the opinion of Bond Counsel with respect to the Bonds is attached as Appendix A. The opinion of Bond Counsel is given based on factual representations made to Bond Counsel, and under existing law, as of the date of initial delivery of the Bonds, and Bond Cou nsel assumes no obligation to revise or supplement its opinion to reflect any facts or circumstances that may thereafter come to its attention, or any changes in law that may thereafter occur. The opinion of Bond Counsel is an expression of its profession al judgment on the matters expressly addressed in its opinion and does not constitute a guarantee of result. Bond Counsel will be compensated only upon the issua nce and sale of the Bonds. LIMITATIONS ON REMEDIES Any remedies available to the owners of the Bonds upon the occurrence of an event of default under the Bond Ordinance are in many respects dependent upon judicial actions, which are in turn often subject to discretion and delay and could be both expensive and time consuming to obtain. If the City fails to comply with its covenants under the Bond Ordinance or to pay principal of or interest on the Bonds, there can be no assurance that available remedies will be adequate to fully protect th e interests of the owners of the Bonds. In addition to the limitations on remedies contained in the Bond Ordinance, the rights and obligations under the Bonds and the Bond Ordinance may be limited by and are subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium , and other laws relating to or affecting creditors‟ rights, to the application of equitable principles, and to the exercise of judicial discretion in appropriate cases. The opinion to be delivered by Foster Pepper PLLC, as Bond Counsel, concurrently with the issuance of the Bonds, will be subject to limitations regarding bankruptcy, insolvency, and other laws relating to or affecting creditors‟ rights. The various other legal opinions to be delivered concurrently with the issuance of the Bonds will be simi larly qualified. A complete copy of the proposed form of opinion of Bond Counsel is set forth in Appendix A. CONFLICTS OF INTEREST Some or all of the fees of the Underwriter and Bond Counsel are contingent upon the issuance and sale of the Bonds. Furthermore, Bond Counsel from time to time serves as counsel to the Underwriter with respect to issuers other than the City and transactions other than the issuance of the Bonds. None of the council members or other officers of the City have intere sts in the issuance of the Bonds that are prohibited by applicable law. UNDERWRITING The Underwriter has agreed, subject to certain conditions, to purchase all of the Bonds at a price of $_________. The Underwriter has represented that the Bonds will be reoffered at the prices or yields s et forth on the inside cover hereof, and such initial offering prices may be changed from time to time by the Underwriter. After the initial public offering, the public o ffering prices may be varied from time to time. The Underwriter has entered into an agreement (the “Distribution Agreement”) with Advisors Asset Management, Inc. (“AAM”), for the distribution of certain municipal securities offerings allocated to the Underwriter at the original offering prices. Under the Distribution Agreement, if applicable to the Bonds, the Underwriter will share with AAM a portion of the fee or commission, exclusive of management fees, paid to the Underwriter. CONCLUDING STATEMENT All estimates, assumptions, statistical information and other statements contained herein , while taken from sources considered reliable, are not guaranteed by the City or the Underwriter. So far as any statement herein includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they are intende d merely as such and not as representations of fact. The information contained herein should not be construed as representing all conditions affecting the City or the Bonds. Additional information may be obtained directly from the City or the Underwriter. The foregoing statements relating to the Bond Ordinances and other documents are in all respects subject to and qualified in their entirety by provisions of such documents. This Official Statement, starting with the cover page and all subsequent pages, including any appendices, comprise the entire Official Statement, which has been approved by the City. The City has represented to the Underwriter that the portions of th is Official Statement directly pertaining to the City neither contain any misrepresentation of material fact nor omit any material fact necessary to understand the financial, economic or legal nature of the City or any information presented herein. CITY OF ARLINGTON, WASHINGTON By ____________________________________ Authorized Representative APPENDIX A FORM OF LEGAL OPINION APPENDIX B 2008 AUDITED FINANCIALS APPENDIX C DTC & BOOK-ENTRY SYSTEM The following information has been provided by DTC. The City makes no representation regarding the accuracy or completeness thereof. Beneficial Owners should therefore confirm the following with DTC or the Direct Participants (as hereinafter defined). DTC will act as securities depository for the Bonds. The Bonds will be issued as fully -registered securities in the name of Cede & Co. (DTC‟s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully - registered Bond certificate will be issued for each issue of the Bonds, each in the aggregate principal amount of such issue, and will be deposited with DTC. DTC, the world‟s largest depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clear ing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over two million i ssues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 85 countries that DTC‟s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants‟ accounts. This eliminates the need for physical movement of securities certifica tes. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a who lly- owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC ”). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC , MBSCC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange, LLC., and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has Standard & Poor‟s highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Bonds under the DTC system must be made by or throu gh Direct Participants, which will receive a credit for the Bonds on DTC‟s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants‟ records. Beneficial O wners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transacti on, as well as periodic statements of their holdings from the Direct or Ind irect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC‟s partnership nominee, Cede & Co or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC‟s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or ma y not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their custome rs. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Partic ipants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subjec t to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC‟s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor suc h other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC‟s Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.‟s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Pro xy). Redemption proceeds, distributions, a nd dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC‟s practice is to credit Direct Participants‟ accounts, upon DTC ‟s receipt of funds and corresponding detail information from the City or Bond Registrar on payable date in accordance with their respective holdings shown on DTC‟s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with Bonds held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC (nor its nominee), the Bond Registrar, or th e City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Bond Registrar, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to Beneficial Owners will be the responsibility of Direct and Indire ct Participants. DTC may discontinue providing its services as bond depository with respect to the Bonds at any time by giving reasonable notice to the City or the Bond Registrar. Under such circumstances, in the event that a successor bond depository is not obtained, Bond certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book -entry-only transfers through DTC (or a successor bond depository). In that event, Bond certificates will be printed and delivered to DT C. The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered. The information in this section concerning DTC and DTC‟s book-entry system has been obtained from sources that the City and the Underwriter believe to be reliable, but neither the City nor the Underwriter takes responsibi lity for the accuracy thereof. City of Arlington Council Agenda Bill AGENDA ITEM: WORKSHOP ITEM #5 ATTACHMENT D COUNCIL MEETING DATE: June 14, 2010 SUBJECT: Financial Software Purchase DEPARTMENT OF ORIGIN: Finance CONTACT: Jim Chase, Finance Director 403-3422 ATTACHMENTS: 1. Bid Proposal EXPENDITURES REQUESTED: Purchase Financial Software BUDGET CATEGORY: Capital Outlay LEGAL REVIEW: DESCRIPTION: The time has come to purchase new financial software. Staff viewed demonstrations from two companies that have software specific to small cash-basis cities in the State of Washington. These companies are both headquartered in Spokane. Each software has the BARS (Budgeting, Accounting Reporting System) integrated into the system, which use is mandated by the State Auditor’s Office. Staff felt the BIAS (BARS Integrated Accounting System) Accounting Software was the preferred choice in both ease of use and price ($41,728). Vision Municipal Solutions is the other company ($43,300). Each has offered 2, 3 and 5 year financing at no interest. The Airport office and the Cemetery office would also use the software. The critical issue at hand is with the Utility Billing Program. Moving to monthly billing has uncovered some challenges in staying with the old (ASP) program. What little user documentation there is, is old and outdated. BIAS has a utility billing program currently up and running where Vision is in the process of writing one but will not be available until sometime in 2011. Currently 61 cities in Washington use the BIAS system. 46 use cities use Vision. HISTORY: The company that wrote and supported the ASP program is no longer in business. It was originally purchased in 1992. ALTERNATIVES: 1. Table for additional review 2. Do not purchase new software and continue to use ASP. RECOMMENDED ACTION: Authorize the purchase the BIAS Software program. City of Arlington Council Agenda Bill AGENDA ITEM: WORKSHOP ITEM #6 ATTACHMENT E COUNCIL MEETING DATE: June 14, 2010 SUBJECT: Update of Arlington Municipal Code – Title 16 DEPARTMENT OF ORIGIN: Executive Contact: Kristin Banfield, 360-403-3444 ATTACHMENTS: Strikeout version of Title 16 – Building & Construction EXPENDITURES REQUESTED: -0- BUDGET CATEGORY: N/A LEGAL REVIEW: Legal review is ongoing DESCRIPTION: Proposed changes within Title 16 of the Arlington Municipal Code are attached for the Council’s review. AMC Title 16 discusses a variety of building and construction regulations, including the adoption of the International Codes. Chapters 16.70, 16.71, 16.72, 16.73, 16.74, 16.75, and 16.76 will be revised and recodified in a NEW Title 21 of the AMC. Revisions to these Chapters will come to the Council in July. HISTORY: The City Council is reviewing the Arlington Municipal Code to update it for eventual publication to the City’s website. ALTERNATIVES: RECOMMENDED MOTION: No action at this time. 1 Current AMC Title 16 with Strikeouts 6/9/10 Title 16 BUILDINGS AND CONSTRUCTION Chapters: 16.04 International Building Code (AMENDED) 16.06 International Code Council Performance Code (AMENDED) 16.08 International Existing Building Code (AMENDED) 16.10 International Residential Code (AMENDED) 16.12 Uniform Swimming Pool, Spa and Hot Tub Code (DELETE - ALREADY IN IRC) 16.16 Washington State Energy Code (AMENDED) 16.20 Ventilation and Indoor Air Quality Code (AMENDED) 16.24 International Property Maintenance Code (AMENDED) 16.28 Building Construction and Life Safety Code (AMENDED) 16.32 International Mechanical Code (AMENDED) 16.36 International Uniform Plumbing Code (AMENDED) 16.40 Moved Buildings Code 16.48 Uniform Housing Code (DELETE – ALREADY CONTAINED IN TITLE 11) 16.52 Building Fees 16.56 Installation Standards for Manufactured Homes (AMENDED) 16.60 Signs (DELETE – ALREADY IN LAND USE CODE) TO BE REVISED AND PLACED IN NEW TITLE 21 (REVIEW IN JULY) 16.70 Telecommunications Facilities 16.71 Master Land Use Permits for Telecommunications Carriers and Providers 16.72 Telecommunications Franchise 16.73 Telecommunications Right-of-Way Use Permits 16.74 Cable Television Franchise 16.75 Conditions of Permits and Franchises 16.76 Construction Standards for Cable and Telecommunications Facilities 2 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.04 INTERNATIONAL BUILDING CODE Sections: 16.04.010 Title. 16.04.020 Documents adopted by reference. 16.04.030 Administration and enforcement--Rules and regulations. 16.04.040 Administration and enforcement--Building official authority. 16.04.045 Liability limitations. 16.04.050 Conflict with Washington State Ventilation and Indoor Air Quality Code. 16.04.060 Notices. 16.04.070 Amendments and additions. 16.04.080 Permit issuance. 16.04.090 Certificate occupancy requested. 16.04.100 Occupancy defined. 16.04.110 Wind design. 16.04.120 Membrane structures. 16.04.130 Preapplication conference. 16.04.140 Applications. 16.04.150 Building permit conditions. 16.04.160 Certification. 16.04.230 Penalty for violations. 16.04.010 Title. This chapter shall be known as the International Building Code of the City of Arlington. 16.04.020 Documents adopted by reference. The 2006 current edition of the International Building Code, including the chapters of its Appendix: E, F, G, I, and J as published by the International Code Council, as set forth in Washington Administrative Code Chapter 51-50 and adopted by the Washington State Building Code Council under the provisions of RCW 19.27, is adopted by reference as the city's building code. 16.04.030 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate, adopt, and issue those rules and regulations necessary for the effective and efficient administration of this code. 16.04.040 Administration and enforcement--Building official authority. The building official of the city shall be deemed to be the "building official" as defined in Section 202 of the International Building Code. The International Building Code shall be administered and enforced by the building official of the city. 16.04.045 Liability limitations. Nothing contained in this chapter or in the International Building Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to conform to the provisions of the International Building Code. 3 Current AMC Title 16 with Strikeouts 6/9/10 16.04.050 Conflict with Washington State Ventilation and Indoor Air Quality Code. In case of conflict between the ventilation requirements of Chapter 16.20 of this code and the ventilation requirements of Washington Administrative Code Chapter 51-13, the Washington State Ventilation and Indoor Air Quality Code, the provisions of the Ventilation and Indoor Air Quality Code shall govern. 16.04.060 Notices. It is unlawful for any person to remove, mutilate, destroy or conceal any lawful notice issued or posted by the building official pursuant to the provisions of this code. 16.04.070 Amendments and additions. The following sections of the International Building Code as adopted in Section 16.04.020 are amended to read as follows: Section 101.1 These regulations shall be known as the Building Code of the City of Arlington, Washington hereinafter referred to as "this code". Section 101.4.1 Electrical The provisions of the National Electrical Code as set forth in the Washington Administrative Code Chapter 296-46B as regulated and enforced by State of Washington Labor & Industries, Electrical Division shall apply to the installation of electrical systems, including alterations, repairs, replacement, equipment, appliances, fixtures, fittings and appurtenances thereto. Section 101.4.4 Plumbing The provisions of the City of Arlington Plumbing Code as adopted by the Arlington Municipal Code Chapter 16.36 shall apply to the installation, alteration, repair and replacement of plumbing systems, including equipment, appliances, fixtures, fittings and appurtenances, and where connected to a water or sewage system and all aspects of medical gas system. The provisions of the State of Washington requirements for private sewage disposal shall apply to private sewage disposal systems. Section 101.4.5 Property Maintenance The provisions of the City of Arlington Property Maintenance Code as adopted by Arlington Municipal Code Chapter 16.24 shall apply to existing structures and premises; equipment and facilities; light, ventilation, space heating, sanitation, life and fire safety hazards, responsibilities of owners, operators and occupants; and occupancy of existing premises and structures. Section 101.4.7 Energy The provisions of the State of Washington Energy Code as adopted by Arlington Municipal Code Chapter 16.16 and the State of Washington Ventilation and Indoor Air Quality Code as adopted by Arlington Municipal Code Chapter 16.20 adopted in the International Residential Code and Arlington Municipal Code Chapter 16.10 shall apply to all matters governing the design and construction of buildings for energy efficiency. Section 104.1 General, is amended to read: 4 Current AMC Title 16 with Strikeouts 6/9/10 The Building Official is hereby authorized and directed to enforce the provisions of this code, including any requirements or regulations imposed on a project as a condition of a land use approval process, as those conditions relate to permit issuance as required in Section 105.3.1.1 and issuance of a certificate of occupancy as required in Section 110.2.1. The Building Official shall have the authority to render interpretations of this code and to adopt policies and procedures in order to clarify the application of its provisions. Such interpretations, policies and procedures shall be in compliance with the intent and purpose of this code. Such policies and procedures shall not have the effect of waiving requirements specifically provided for in this code. Section 105.2, item 4 is amended to read: Retaining walls which are not over 4 feet in height measured from the bottom of the footing to the top of the wall, provided the wall is set back from any adjacent property lines or structures a distance at least equal to the height of the wall and the material retained slopes 1 vertical to 2 horizontal (or less) up and away from the wall unless supporting a surcharge or impounding Class I, II or IIIA liquids. Section 105.2, item 11 is amended to read: Swings and other playground equipment.;b1 Section 105.3.1.1 Prerequisites for issuance of permit: The Building Official shall determine whether the following requirements have been met prior to issuance of a permit: 1. Any requirements or regulations imposed on a project as a condition of a land use approval process; 2. Any requirements or regulations imposed on a project as a condition the site civil approval process; 3. Any transportation, school, parks or other mitigation or impact fees are paid; 4. Approval of Design Review as required by Arlington Municipal Code Chapter 20.46; 5. Compliance with the State Environmental Policy Act, as adopted by Arlington Municipal Code chapter 20.98; 6. Compliance with the Flood Management requirements as adopted by Arlington Municipal Code Chapter 20.64; 7. Compliance with Environmentally Critical Areas Protection requirements as required by Arlington Municipal Code Chapter 20.88;. Section 106.1 shall have a new sentence added to the end of the paragraph as follows:Submittal Documents All plans for construction, erection, enlargement, alteration or repairs of building or structures 4,000 square feet or over shall be designed, prepared and stamped by an architect licensed by the state of Washington. Section 108.3 shall have a new sentence added to the end of the paragraph as followsBuilding Permit Valuation: The valuation for commonly built structures shall be determined by the most current issue of the Building Safety Journal, which offers the legacy building valuation data fee schedule as published by the International Code Council, adopted herein by reference. 5 Current AMC Title 16 with Strikeouts 6/9/10 Section 110.5 Violation of requirements for certificate of occupancy. The City Council affirms that the issuance of any certificate of occupancy is of vital importance in the safeguarding of life safety, property safety and health of occupants of any structure; and further, that the enforcement of all city development regulations is of vital importance to the city's economic vitality and the public good. Any person allowing a building to be occupied without a certificate of occupancy first being issued as required by this Chapter shall be subject to the civil penalty provisions of the Arlington Municipal Code Chapters 1 and 11 and is subject to be abatement in accordance with the abatement procedures specified in Arlington Municipal Code Chapter 16.4448, including posting to prevent occupancy. Section 112 Board of Appeals is hereby not adopted. Section 202 Grade Plane. A referenced plane representing the average of the finished ground level, adjoining the building at all exterior walls. Where the finished ground level slopes away from the exterior walls, the reference plane shall be established by the lowest points within the area between the building and the lot line or, where the lot line is more than 10 feet from the building between the structure and a point 10 feet from the building. Section 403.1 Scope. The provisions of this section shall apply to all buildings having occupied floors located more than fifty feet above the lowest level of the fire department vehicle access. Such buildings shall be provided with an approved automatic sprinkler system throughout in accordance with Section 403.2. Chapter 11. Accessibility. Chapter 11 and other International Building Code requirements for barrier-free access, including ICC A117.1-2003 and appendix E are hereby adopted pursuant to chapters 70.92 and 19.27 RCW. Section 3201.4 Right-of-way Permits. A permit is required for any construction, alteration, repair, move, demolish, replace, use or encroachment into the public right-of way as determined by the City Engineer. Appendix Section H101.2 Signs exempt from permits: Signs exempt from the requirements to obtain a permit before erection are listed in Arlington Municipal Code Chapter 20.68. Appendix Section H101.3 shall have a new sentence added to the end of the paragraph as follow: Local sign regulations are also contained in AMC Chapter 20.68, Signs. Where this code and AMC 20.68 conflict, the stricter of the regulations shall apply. Appendix Section H110 is hereby deleted. Roof signs are not allowed except per AMC Section 20.68.810. Appendix Section J103.1 Permits Required. Except as exempted in Section J103.2, no grading shall be performed without first having obtained a permit therefore from the City Engineer. A grading permit does not include the construction of retaining walls or other structures. Appendix Section J104.3, Exception. A soils report is not required where the Building Official or the City Engineer determines that the nature of the work applied for is such that a report is not necessary. Appendix Section J106.1, Exception 1, Item 1.4 It is approved by the City Engineer. Appendix Section J108.3, Slope Protection. 6 Current AMC Title 16 with Strikeouts 6/9/10 Where required to protect adjacent properties at the toe of a slope from adverse effects of the grading, additional protection, approved by the City Engineer, shall be included. Appendix Section J109.3 Interceptor Drains. Interceptor drains shall be installed along the top of cut slopes receiving drainage from a tributary width greater than 40 feet, measured horizontally. They shall have a minimum depth of 1 foot and a minimum width of 3 feet. The slope shall be approved by the City Engineer, but shall not be less than 50 horizontal to 1 vertical. The drain shall be paved with concrete not less than 3 inches in thickness, or by other materials suitable to the application. Discharge from the drain shall be accomplished in a manner to prevent erosion and shall be approved by the City Engineer. 16.04.080 Permit issuance. Section 106.4.4 of the Uniform Building Code, 1997 Edition, as adopted, is amended by deleting and inserting in its place the following wording: 106.4.4 Expiration. Every permit issued by the Building Official under the provisions of this Code, except demolition permits, shall expire by limitation and become null and void if the building or work authorized by such permit is not commenced within 180 days from the date of such permit, or if the building or work authorized by such permit is suspended or abandoned at any time after the work is commenced for a period of 180 days. Before such work can be recommenced, a new permit shall be first obtained so to do and the fee therefor shall be one-half the amount required for a new permit for such work, or based on the valuation of the work that remains to be done, whichever is less, provided no changes have been made in the original plans and specifications for such work, and provided further that such suspension or abandonment has not exceeded 1 year. In order to renew action on a permit after expiration, the permittee shall pay a new full permit fee. Demolition permits shall expire by limitation 30 days after date of issue. Any permittee holding an unexpired permit may apply for an extension of the time within which work may commence under that permit when permittee is unable to commence work within the time required by this section for good and satisfactory reasons. The Building Official may extend the time for action by the permittee for a period not exceeding 180 days upon written request by the permittee showing circumstances beyond the control of the permittee have prevented action from being taken. No permit shall be extended more than once. 16.04.090 Certificate occupancy requested. Section 109.1 of the Uniform Building Code, 1997 Edition, as adopted, is amended by deleting and inserting in its place the following wording: Section 109.1 Use or Occupancy. No building or structure shall be used or occupied, and no change in the existing occupancy classification of a building or structure or portion thereof shall be made until the Building Official has issued a Certificate of Occupancy therefor provided herein. No building in Group M shall be used or occupied without first having obtained a final inspection and approval by the Building Official. 16.04.100 Occupancy defined. Section 216-0 of the Uniform Building Code, 1997 Edition, as adopted, is amended by deleting and inserting in its place the following: Occupancy is the purpose for which a building, or part thereof, is used or intended to be used. Occupancy includes the installation of shelving, furniture, fixtures, and appliances unless such 7 Current AMC Title 16 with Strikeouts 6/9/10 items are included in a building permit. Occupancy also includes stocking of shelves, storage of furniture or material for sale, interviewing personnel or use for managerial duties. 16.04.110 Wind design. Section 1618 of the Uniform Building Code, 1997 edition, as herein adopted, is amended by adding the following sentence: The minimum basic wind speed shall be 80 m.p.h. 16.04.120 Membrane structures. Chapter 31, Div. II, of the Appendix to the Uniform Building Code, 1997 Edition, as herein adopted, is amended to add the following: Membrane structures shall not be permitted in front yards as defined in the Unified Development Code. They shall be permitted in side yards and new yards as defined in Chapter IV B provided that said structures shall otherwise comply with all requirements of the Arlington Municipal Code and the Unified Development Code including setback requirements. 16.04.130 Preapplication conference. Purpose. In order to provide applicants with information regarding the materials and submittals which may be required for a commercial/industrial building, grading, excavation or paving application, a mandatory preapplication review process is established for all minor development permits as set forth in the provisions of the unified development code. All applicants for any commercial/industrial building, grading, excavation or paving permits shall, prior to submitting a building permit application, first request in writing and hold a preapplication conference with the city's responsible official or his or her designee. 16.04.140 Applications. Applications for minor development permits shall conform to the provisions of the unified development code. 16.04.150 Building permit conditions. A commercial/industrial building, grading, paving or excavation permit shall not be issued for a minor development permit until the city's responsible official finds that the streets, roads, parks, sewer, water and drainage system within the city are present and adequate to serve the facility and that the facility will meet the performance standards of the unified development code. Where the city's responsible official determines a site plan review is required, the building permit shall not be issued until the site plan review process is complete. 16.04.160 Certification. Certifications for concurrency management shall conform to the provision as set forth in the unified development code. 16.04.230 Penalty for violations. (a) Any person, firm or corporation violating any of the provisions of this title is guilty of a misdemeanor, and each such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this title is committed, continued, or permitted, and upon conviction of any such violation such person shall 8 Current AMC Title 16 with Strikeouts 6/9/10 be punishable by a fine or by imprisonment or both such fine and imprisonment, as provided in Section 1.04.010 of this code. (b) Anyone concerned in the violation or failure to comply with the provisions of this code, whether directly committing act or effecting the omission constituting the offense or aiding or abetting the same shall be guilty of a misdemeanor and punished as set forth herein. 9 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.06 INTERNATIONAL CODE COUNCIL PERFORMANCE CODE Sections: 16.06.010 Title. 16.06.020 Document adopted by reference. 16.06.030 Administration and enforcement--Rules and regulations. 16.06.040 Administration and enforcement--Building official authority. 16.06.050 Liability limitations. 16.06.010 Title. This chapter shall be known as the International Code Council Performance Code of the City of Arlington. 16.06.020 Document adopted by reference. The 2006 current edition of the International Code Council Performance Code, as published by International Code Council, as set forth in Washington Administrative Code Chapter 51-50 and adopted by the Washington State Building Code Council under the provisions of RCW 19.27, is adopted by this reference as the city's International Code Council Performance Code. 16.06.030 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate such rules and regulations as may be necessary to the effective and efficient administration of the code. 16.06.040 Administration and enforcement--Building official authority. The International Code Council Performance Code shall be administered and enforced by the city building official. 16.06.050 Liability limitations. Nothing contained in this chapter or in the International Code Council Performance Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage, resulting from the failure to conform to the provisions of this code. 10 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.08 INTERNATIONAL EXISTING BUILDING CODE Sections: 16.08.010 Title. 16.08.020 Document adopted by reference. 16.08.030 Administration and enforcement--Rules and regulations. 16.08.040 Administration and enforcement--Building official authority. 16.08.050 Amendments to Section 101.2. 16.08.060 Amendments to Section 102.4. 16.08.070 Amendment to Section 103.1. 16.08.080 Amendment to Section 112. 16.08.090 Liability limitations. 16.08.010 Title. This chapter shall be known as the International Existing Building Code of the City of Arlington. 16.08.020 Document adopted by reference. The 2006 current edition of the International Existing Building Code, including Appendix A, as published by International Code Council as set forth in Washington Administrative Code Chapter 51-50 and adopted by the Washington State Building Code Council under the provisions of RCW 19.27, is adopted by this reference as the city's existing building code. 16.08.030 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate such rules and regulations as may be necessary to the effective and efficient administration of the code. 16.08.040 Administration and enforcement--Building official authority. The International Existing Building Code shall be administered and enforced by the city building official. 16.08.050 Amendments to Section 101.2. Section 101.2 is hereby amended to read as follows: Scope. The provisions of the International Existing Building Code shall apply to the repair, alteration, changes of occupancy, addition and relocation of existing buildings. A building or portion of a building that has not been previously occupied or used for its intended purpose shall comply with the provisions of the International Existing Code for new construction. Repairs, alterations, changes of occupancy, existing buildings to which additions are made, historic buildings, and relocated buildings complying with the provisions of the International Building Code, International Mechanical Code, Uniform Plumbing Code, and International Residential Code as applicable shall be considered in compliance with the provisions of this code. 16.08.060 Amendments to Section 102.4. Section 102.4 shall be amended to read as follows: Referenced codes and standards. The codes and standards referenced in this code shall be considered part of the requirements of this code to the prescribed extent of each such reference. 11 Current AMC Title 16 with Strikeouts 6/9/10 Where differences occur between provisions of this code and referenced codes and standards, the provisions of this code shall apply. References made to the International Plumbing Code shall be replaced referencing the Uniform Plumbing Code. References made to the International Code Council Electrical Code shall be replaced referencing the National Electrical Code. 16.08.070 Amendment to Section 103.1. Section 103.1 shall be amended to read as follows: Creation of enforcement agency. All references to the term "code official" shall deem to mean the Building Official or any duly authorized representative. 16.08.080 Amendment to Section 112. Section 112 Board of Appeals is hereby not adopted. 16.08.090 Liability limitations. Nothing contained in this chapter or in the International Existing Building Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to conform to the provisions of the International Existing Building Code. 12 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.10 INTERNATIONAL RESIDENTIAL CODE Sections: 16.10.010 Title. 16.10.020 Documents adopted by reference. 16.10.030 Administration and enforcement--Rules and regulations. 16.10.040 Administration and enforcement--Building official authority. 16.10.050 Notices. 16.10.060 Liability limitations. 16.10.070 Amendments and additions. 16.10.010 Title. This chapter shall be known as the International Residential Code of the City of Arlington. 16.10.020 Documents adopted by reference. The 2006 current edition of the International Residential Code, including the following chapters of its Appendix: A, B, C, D, G, H, J, K and P as published by the International Code Council, as set forth in Washington Administrative Code Chapter 51-51 and adopted by the Washington State Building Code Council under the provisions of RCW 19.27, is adopted by reference. with the following deletions, additions, and exceptions as the city's residential building code; provided, however, that Chapters 11, and 25 through 42 are not adopted. 16.10.030 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate, adopt, and issue those rules and regulations necessary for the effective and efficient administration of this code. 16.10.040 Administration and enforcement--Building official authority. The building official of the city shall be deemed to be the "building official" as defined in Section 202 of the International Building Code. The International Residential Code shall be administered and enforced by the building official of the city. 16.10.050 Notices. It is unlawful for any person to remove, mutilate, destroy or conceal any lawful notice issued or posted by the building official pursuant to the provisions of this code. 16.10.060 Liability limitations. Nothing contained in this chapter or in the International Residential Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to conform to the provisions of the International Residential Code. 16.10.070 Amendments and additions. The following sections of the International Residential Code as adopted in Section 16.10.020 are amended to read as follows: Section R101.1 Title, amended to read as follows: 13 Current AMC Title 16 with Strikeouts 6/9/10 These provisions shall be known as the international Residential Code for One and Two-Unit Dwellings of the City of Arlington, and shall be cited as such and will be referred to as "this code." Section R301.2 (a) Climate and Geographic Design Criteria, to be filled-in as follows: TABLE INSET: Ground Snow Load: 15 PSF Wind speed: 85 MPH Seismic Design Group: D1 Damage from Weathering: Moderate Frost Line Depth: 12 Inches Termite: None to Slight Decay: Slight to Moderate Winter Design Temp: 27 Degrees Ice Shield Underlayment: No Air Freezing Index: N/A Mean Annual Temperature: 50 Degrees Section R112 Board of Appeals is hereby not adopted. Appendix P Sprinkling. Section AP101 Fire Sprinklers, is hereby amended to read as follows: An approved automatic fire sprinkler system shall be installed in new townhouses, four (4) units or more, in accordance with Section 903.3.1 of the International Building Code. 14 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.12 UNIFORM SWIMMING POOL, SPA AND HOT TUB CODE Sections: 16.12.010 Title. 16.12.020 Document adopted by reference. 16.12.030 Administration and enforcement--Rules and regulations. 16.12.040 Administration and enforcement--Building official authority. 16.12.050 Liability limitations. 16.12.060 Effective date. 16.12.010 Title. This chapter shall be known as the Uniform Swimming Pool, Spa and Hot Tub Code. 16.12.020 Document adopted by reference. The 2006 edition of the Uniform Swimming Pool, Spa and Hot Tub Code, as published by International Association of Plumbing and Mechanical Officials, is adopted by this reference as the city's Swimming Pool, Spa and Hot Tub Code. 16.12.030 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate such rules and regulations as may be necessary to the effective and efficient administration of the code. 16.12.040 Administration and enforcement--Building official authority. The Uniform Swimming Pool, Spa and Hot Tub Code shall be administered and enforced by the city building official. 16.12.050 Liability limitations. Nothing contained in this chapter or in the Swimming Pool, Spa and Hot Tub Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage, resulting from the failure to conform to the provisions of this code. 16.12.060 Effective date. The Uniform Swimming Pool, Spa and Hot Tub Code adopted in this chapter is effective on June 24, 1998. 15 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.16 WASHINGTON STATE ENERGY CODE Sections: 16.16.010 Document adopted by reference. 16.16.020 Administration and enforcement--Rules and regulations. 16.16.030 Administration and enforcement--Building official authority. 16.16.040 Liability limitations. 16.16.010 Document adopted by reference. The Washington State Energy Code, 2006 current Editionedition, as set forth in WAC Chapter 51-11, and as adopted by the Washington State Building Code Council under the provisions of RCW 19.27.020 and 19.27.045, is adopted by reference as the city's energy code. 16.16.020 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate such rules and regulations as may be necessary to the effective and efficient administration of the code. 16.16.030 Administration and enforcement--Building official authority. The Washington State Energy Code shall be administered and enforced by the city building official. 16.16.040 Liability limitations. Nothing contained in this chapter or in the Washington State Energy Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to conform to the provisions of the Washington State Energy Code. 16 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.20 VENTILATION AND INDOOR AIR QUALITY CODE Sections: 16.20.010 Document adopted by reference. 16.20.020 Administration and enforcement--Rules and regulations. 16.20.030 Administration and enforcement--Building official authority. 16.20.040 Liability limitations. 16.20.010 Document adopted by reference. The Ventilation and Indoor Air Quality Code, 2006 Edition, as set forth in WAC 51-13, and adopted by the Washington State Building Code Council under the provisions of RCW 19.27.190, is adopted by reference as the city's ventilation and indoor air quality code. 16.20.020 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate such rules and regulations as may be necessary to the effective and efficient administration of the code. 16.20.030 Administration and enforcement--Building official authority. The Ventilation and Indoor Air Quality Code shall be administered and enforced by the city building official. 16.20.040 Liability limitations. Nothing contained in this chapter or in the Ventilation and Indoor Air Quality Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to conform to the provisions of the Ventilation and Indoor Air Quality Code. 17 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.24 INTERNATIONAL PROPERTY MAINTENANCE CODE Sections: 16.24.010 Title. 16.24.020 Document adopted by reference. 16.24.030 Administration and enforcement--Rules and regulations. 16.24.040 Administration and enforcement--Building official authority. 16.24.050 Liability limitations. 16.24.060 Amendment to Section 102.3. 16.24.070 Amendment to Section 103.1. 16.24.080 Amendment to Section 103.5. 16.24.090 Amendment to Section 106. 16.24.100 Amendment to Section 107. 16.24.110 Amendment to Section 111. 16.24.120 Amendment to Section 201.3. 16.24.130 Amendment to Section 304.14. 16.24.140 Amendment to Section 505.1. 16.24.150 Amendment to Section 602.3. 16.24.160 Amendment to Section 604.2. 16.24.170 Reference standards. 16.24.180 Drug properties and structures. 16.24.190 City performance of work of demolition or repair, and recovery of costs. 16.24.010 Title. This chapter shall be known as the International Property Maintenance Code of the City of Arlington. 16.24.020 Document adopted by reference. The 2006 current edition of the International Property Maintenance Code, as published by the International Code Council, is adopted by reference as the city's property maintenance code. 16.24.030 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate such rules and regulations as may be necessary to the effective and efficient administration of the code. 16.24.040 Administration and enforcement--Building official authority. The International Property Maintenance Code shall be administered and enforced by the city building official. 16.24.050 Liability limitations. Nothing contained in this chapter or in the International Property Maintenance Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to conform to the provisions of the International Property Maintenance Code. 18 Current AMC Title 16 with Strikeouts 6/9/10 16.24.060 Amendment to Section 102.3. Section 102.3 is hereby amended to read as follows: Application of other codes. Repairs, additions, or alterations to a structures, or changes of occupancy, shall be done in accordance with the procedures and provisions of the International Existing Building Code. Nothing in this code shall be construed to cancel, modify or set aside any provisions of the City of Arlington Land Use Code and Development Design Guidelines. 16.24.070 Amendment to Section 103.1. Section 103.1 is hereby amended to read as follows: General. The Department of Building Safety is hereby created and the official in charge thereof shall be known as the Building Official. All references to the term "code official" shall deem to mean the Building Official or any duly authorized representative. 16.24.080 Amendment to Section 103.5. Section 103.5 is hereby amended to read as follows: Fees. The fees for activities and services performed by the department in carrying out its responsibilities under this code shall be as set by resolution of the City Council. 16.24.090 Amendment to Section 106. Sections 106.1 and 106.2 are hereby amended to read as follows: Section 106.1 Unlawful Act. It shall be unlawful for a person, firm or corporation to be in conflict with or in violation of any of the provisions of this code. Section 106.2 Notice of Violation. The code official shall serve a notice of violation or order in accordance with Title 11 of the Arlington Municipal Code. Sections 106.3, 106.4, 106.5 are hereby deleted. 16.24.100 Amendment to Section 107. Section 107, Notices and Orders, is hereby not adopted. 16.24.110 Amendment to Section 111. Section 111, Means of Appeal, shall be and is hereby deleted and shall be replaced with the provisions of Title 11 of the Arlington Municipal Code. 16.24.120 Amendment to Section 201.3. Section 201.3 is hereby amended to read as follows: Terms defined in other codes. When terms are not defined in this code and are defined in the International Building Code, International Fire Code, Uniform Plumbing Code, International Mechanical Code, International Existing Building Code, National Electrical Code or the City of Arlington Land Use Code and Development Design Guidelines, such terms shall have the meaning ascribed to them as in those codes. 16.24.130 Amendment to Section 304.14. Section 304.14 is hereby amended to read as follows: Insect Screens. During the period from April 15th to October 15th, every door, window and other outside opening required for ventilation of habitable rooms, food preparation areas, food service 19 Current AMC Title 16 with Strikeouts 6/9/10 areas or any areas where products to be included or utilized in food for human consumption are processed, manufactured, packaged or stored, shall be supplied with approved tightly fitting screens of not less than 16 mesh per inch (16 mesh per 25mm) and every swinging door shall have a self-closing device in good working condition. 16.24.140 Amendment to Section 505.1. Section 505.1 is hereby amended to read as follows: General. Every sink, lavatory, bathtub or shower, drinking fountain, water closet or other plumbing fixture shall be property connected to either a public water system or to an approved private water system. All kitchen sinks, lavatories, laundry facilities, bathtubs and showers shall be supplied with hot or tempered and cold running water in accordance with the Uniform Plumbing Code. 16.24.150 Amendment to Section 602.3. Section 602.3 is hereby amended to read as follows: Heat Supply. Every owner and operator of any building who rents, leases or lets one or more dwelling units, rooming unit, dormitory or guestroom on terms, either expressed or implied, to furnish heat to the occupants thereof shall supply heat throughout 360 days a year to maintain a temperature of not less than 68ºF (20ºC) in all habitable rooms, bathrooms, and toilets rooms. Exceptions: 1. When the outdoor temperature is below the winter outdoor design temperature for the locality, maintenance of the minimum room temperature shall not be required provided that the heating system is operating at its full design capacity. The winter outdoor design temperature for the locality shall be as indicated in Appendix D of the International Plumbing Code. 2. In areas where the average monthly temperature is above 30ºF (-1C) a minimum temperature of 65ºF (18ºC) shall be maintained. 16.24.160 Amendment to Section 604.2. Section 604.2 is hereby amended to read as follows: Service. The size and usage of appliances and equipment shall serve as a basis for determining the need for additional facilities in accordance with the National Electrical Code. Dwelling units shall be served by a three-wire, 120/240 volt, single phase electrical service having a rating of not less than 60 amperes. 16.24.170 Reference standards. The following reference standards in Chapter 8 are not adopted: ICC EC-06, and IZC-06. The following standards are hereby adopted by reference and are to be added to Chapter 8: NEC- 05, and UPC-06 and the City of Arlington land use code and design guidelines. 16.24.180 Drug properties and structures. It is hereby declared that any building, structure and/or associated property wherein or upon which the manufacture, distribution, production or storage of illegal drugs or the precursors to create illegal drugs has taken place in a manner which could endanger the public, such as building, structure and/or associated property is not only a dangerous property but is also of a classification of property calling for special procedures set forth in this section. The building official is authorized to abate such dangerous buildings, structures and associated properties in 20 Current AMC Title 16 with Strikeouts 6/9/10 accordance with the dangerous building procedures set forth in such code, with the following modifications: (1) Due to public safety hazard in drug-production facilities, the utilities shall be disconnected. (2) Buildings and structures will be inspected to determine compliance with all city ordinances and codes. (3) Buildings and entry gates to the property will be secured against entry until compliance with all city codes and ordinances is achieved. (4) No reconnection of utilities or occupancy of the building, structures or property shall be allowed until all violations have been remedied, and all dangerous conditions abated to the satisfaction of the building official and a notice of release for occupancy has been received from the Snohomish County health district. 16.24.190 City performance of work of demolition or repair, and recovery of costs. If the owner or party in interest following exhaustion of the rights to appeal fails to comply with the final order to repair, alter, improve, vacate, close, remove, or demolish the dwelling, building, structure, or premise, the building official may direct or cause such dwelling, building, structure, or premises to be repaired, altered, improved, vacated, and closed, removed, or demolished. The amount of the cost of such repairs, alterations or improvements; or vacating and closing; or removal or demolition by the building official, shall be assessed against the real property upon which such cost was incurred unless such amount is previously paid. Upon certification by the city of the assessment amount being due and owing, the county treasurer shall enter the amount of such assessment upon the tax rolls against the property for the current year and the same shall become a part of the general taxes for that year to be collected at the same time and with interest at such rates and in such manner as provided for in Revised Code of Washington 84.56.020, as now or hereafter amended, for delinquent taxes, and when collected to be deposited to the credit of the general fund of the city. If the dwelling, building, structure, or premises is removed or demolished by the building official, the building official shall, if possible, sell the materials of the dwelling, building, structure, or premises, and shall credit the proceeds of such sale against the cost of the removal or demolition, and if there be any balance remaining, it shall be paid to the parties entitled thereto, as determined by the building official, after deducting the costs incident thereto. The assessment shall constitute a lien against the property, which shall be of equal rank with state, county and municipal taxes. 21 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.28 BUILDING CONSTRUCTION AND LIFE SAFETY CODE Sections: 16.28.010 Title. 16.28.020 Conflict of building construction and life safety codes. 16.28.030 Permits, terms and extensions. 16.28.040 Administration and enforcement--Rules and regulations. 16.28.050 Administration and enforcement--Building official authority. 16.28.060 Liability limitations. 16.28.010 Title. This chapter shall be known as the building construction and life safety code of the City of Arlington. 16.28.020 Conflict of building construction and life safety codes. If there exists or should arise a conflict between the provisions or interpretations of the various construction and life safety codes adopted in those chapters of this title preceding this chapter, the provisions of Chapter 16.04 shall prevail, and any sections or provisions of other codes in conflict therein shall be considered to be amended to be in conformity with Chapter 16.04.; provided, however, that in case of conflict between the ventilation requirements of Chapter 12 of the International Building Code and the ventilation requirements of the city's energy code contained in Chapter 16.16, said Chapter 16.16 shall govern and in case of conflict between the duct insulation requirements of Section 605 of the International Mechanical Code and the duct insulation requirements of Chapter 16.16, the provision of Chapter 16.16 shall govern. 16.28.030 Permits, terms and extensions. Every permit issued under the provisions of the codes adopted by those chapters of this title preceding this chapter, shall expire and become null and void if the building or work authorized by such permit is not commenced within one hundred eighty days from the date of such permit, or if the building or work authorized by such permit is suspended or abandoned at any time after the work has commenced for a period of one hundred eighty days. For the purposes of this section, the one hundred eighty days will be deemed to have expired if no inspections have been called for within one hundred eighty days of the date of permit issuance or within one hundred eighty days after a validly called inspection. For an inspection to be a validly called inspection, for the purposes of this section, the work being inspected must be complete, ready for the inspection, and noted "approved" by the building official. Before such work can recommence, a new permit shall be first obtained and the fee therefor shall be one-half of the amount required for a new permit for such work provided no changes have been made or will be made in the original plans and specifications for such work and, provided further, that such suspension or abandonment has not exceeded one year. Any permittee holding an unexpired permit may apply for an extension of time within which he may commence work under that permit, when he is unable to commence work within the time required by this section for good and satisfactory reasons satisfactory to the building official. The building official, for all permits authorized by prior chapters of this title, may extend the time for action by the permittee for a 22 Current AMC Title 16 with Strikeouts 6/9/10 period not exceeding one hundred eighty days upon written request by the permittee showing that circumstances beyond the control of the permittee have prevented action from being taken. No permit shall be extended more than once. (The permittee shall pay a new full permit fee.) All permits expire after eighteen months and must be renewed if the work is not yet completed. 16.28.040 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate such rules and regulations necessary to the effective and efficient administration of the code. 16.28.050 Administration and enforcement--Building official authority. The Building Construction and Life Safety Code shall be administered and enforced by the city building official. 16.28.060 Liability limitations. Nothing contained in this chapter or in the Building Construction and Life Safety Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to conform to the provisions of the Building Construction and Life Safety Code. 23 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.32 INTERNATIONAL MECHANICAL CODE Sections: 16.32.010 Title. 16.32.020 Document adopted by reference. 16.32.030 Administration and enforcement--Rules and regulations. 16.32.040 Administration and enforcement--Building official authority. 16.32.050 Liability limitations. 16.32.060 Amendment to Section 202. 16.32.070 Amendment to Section 901. 16.32.080 Amendment to Section 108.1. 16.32.090 Amendment to Chapter 10. 16.32.100 Amendment to Section 106.4.3 Expiration. 16.32.010 Title. This chapter shall be known as the International Mechanical Code of the City of Arlington. 16.32.020 Document adopted by reference. (a) The 2006 current edition of the International Mechanical Code including Appendix A as published by the International Code Council, as set forth in Chapter 51-52 of the Washington Administrative Code and adopted by the Washington State Building Code Council under the provisions of RCW 19.27.031 and 19.27.074, is adopted by this reference as the city's mechanical code; provided, however, that the standards for liquefied petroleum gas installations shall be NFPA 58 (Storage and Handling of Liquefied Petroleum Gases) and ANSI Z223.1/NFPA 54 (National Fuel Gas Code). (b) Amendment to Section 106.5.2 Fee Schedule. Fees for mechanical permits shall be set by resolution by the city council. 16.32.030 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate such rules and regulations as may be necessary to the effective and efficient administration of the code. 16.32.040 Administration and enforcement--Building official authority. The International Mechanical Code shall be administered and enforced by the city building official. 16.32.050 Liability limitations. Nothing contained in this chapter or in the International Mechanical Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to conform to the provisions of the International Mechanical Code. 16.32.060 Amendment to Section 202. 24 Current AMC Title 16 with Strikeouts 6/9/10 Section 202, Unusually Tight Construction, is amended to add a new subsection 4: Buildings built in compliance with the 1986 or later editions of the Washington State Energy Code, Northwest Energy Code, or Super Good Cents weatherization standards or equivalent. 16.32.070 Amendment to Section 901. Section 901 is amended to add a new subsection to read as follows: 901.5 Heating. 901.5.1 Definitions. For the purposes of this section only, the following definitions apply: "Designated Areas" are those areas designated by a county to be an urban growth area in chapter 36.70A of the Revised Code of Washington and those areas designated by the Environmental Protection Agency as being in non-attainment for particulate matter. "Substantially Remodeled" is any alteration or restoration of a building exceeding 60 percent of the assessed valuation of such building within a twelve-month period. 901.5.2 Primary Heating Source. Primary heating sources in all new and substantially remodeled buildings in designated areas shall not be dependent upon wood stoves. 901.5.3 Solid Fuel Burning Devices. No used fuel-burning device shall be installed in new or existing buildings unless such device is United States Environmental Protection Agency certified or a pellet stove either certified or exempt from certification by the United States Environmental Protection Agency. EXCEPTION: antique wood cook stoves and heaters manufactured prior to 1940. 16.32.080 Amendment to Section 108.1. Section 108.1 is amended to read as follows: Unlawful Acts. It shall be unlawful for a person, firm or corporation to erect, construct, enlarge, alter, repair, move, improve, remove, convert, demolish or utilize a mechanical system, or cause the same to be done, in conflict with or in violation of any provision of any of the provisions of this code. Each separate day or any portion thereof, during which any violation of this code occurs or continues, shall be deemed to constitute a separate offence. 16.32.090 Amendment to Chapter 10. The following sections in Chapter 10 are deleted: Sections 1004, 1005, 1006, 1007, 1008, 1009, 1010 and 1011 relating to boilers and pressure vessels. Boilers and pressure vessels shall be regulated by RCW 70.79 and WAC 296-104. 16.32.100 Amendment to Section 106.4.3 Expiration. Every permit issued by the building official under the provisions of this code shall expire by limitation and become null and void if the work authorized by such permit is not commenced within one hundred eighty days from the date of such permit, or if the work authorized by such permit is suspended or abandoned at any time after the work is commenced for a period of one hundred eighty days. Before such work recommences, the permittee shall obtain a new permit for such work, provided no changes have been made, or will be made in the original plans and specifications for such work, and further provided that suspension or abandonment not exceed one year. In order to renew action on a permit after expiration, the permittee shall pay a new full permit fee. 25 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.36 INTERNATIONAL UNIFORM PLUMBING CODE Sections: 16.36.010 Title. 16.36.020 Document adopted by reference. 16.36.030 Administration and enforcement--Rules and regulations. 16.36.040 Administration and enforcement--Building official. 16.36.050 Liability limitations. 16.36.060 Water heaters. 16.36.070 Building sewers. 16.36.080 Fuel gas piping. 16.36.090 Firestop protection. 16.36.010 Title. This chapter shall be known as the International Plumbing Code of the City of Arlington. 16.36.020 Document adopted by reference. (a) The 2006 current edition of the Uniform Plumbing Code as published by the International Association of Plumbing and Mechanical Officials as set forth in WAC 51-56 as adopted by the Washington State Building Code Council under the provisions of RCW 19.27.031 and 19.27.074 is adopted by reference as the plumbing code. (b) All plumbing permit and other fees shall be set by separate resolution of the city. 16.36.030 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate, adopt and issue those rules and regulations necessary to the effective and efficient administration of the code. 16.36.040 Administration and enforcement--Building official. The Uniform Plumbing Code shall be administered and enforced by the city building official. 16.36.050 Liability limitations. Nothing contained in this chapter or in the Uniform Plumbing Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to the provisions of this code. 16.36.060 Water heaters. Chapter 5, Water Heaters, of the Uniform Plumbing Code is not adopted. 16.36.070 Building sewers. Chapter 7, Part II, Building Sewers, of the Uniform Plumbing Code is not adopted. 16.36.080 Fuel gas piping. Chapter 12, Fuel Gas Piping, of the Uniform Plumbing Code is not adopted. 26 Current AMC Title 16 with Strikeouts 6/9/10 16.36.090 Firestop protection. Chapter 15, Firestop Protection, of the Uniform Plumbing Code is not adopted. 27 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.40 MOVED BUILDINGS CODE Sections: 16.40.010 Title. 16.40.020 Purpose. 16.40.030 Definitions. 16.40.040 Permit required. 16.40.050 Permit--Application information. 16.40.060 Permit--Application--Deposits and fees. 16.40.070 Permit--Condition for granting. 16.40.080 Permit--Special requirements. 16.40.090 Liability. 16.40.100 Violation--Penalty. 16.40.010 Title. This chapter shall be known as the moved buildings code of the City of Arlington. 16.40.020 Purpose. It is the purpose of this chapter to establish standards including minimum requirements for the moving of all buildings and other structures within the corporate limits of the city, and to provide for the issuance of a permit, collection of various fees, and inspection service for all such movements. 16.40.030 Definitions. For the purpose of this chapter, the following terms, phrases, words, and their derivations shall have the meaning given in this section: (1) "Building" means a structure as defined in the International Building Code. (2) "Building inspector" means the person appointed as the building official or his duly authorized representative. (3) Classification of Movements. (A) "Class I move" is the movement of any building from an origin outside the city to a destination within the city. (B) "Class II move" is the movement of any building from one point within the city to another point within the city. (C) "Class III move" is the movement of a building from a point within the city to a destination outside the city. (D) "Class IV move" is the movement of any building through the city with both an origin and destination outside the city. (4) "Person" means and includes any person, firm, partnership, association, corporation, company or an organization of any kind. (5) "House mover" means any person, firm or corporation engaged in the business of moving houses, buildings, structures or other like objects. 16.40.040 Permit required. 28 Current AMC Title 16 with Strikeouts 6/9/10 No person shall move any building, over, upon, along or across any public street, alley, or lot without written permit from the city of Arlington for all such moves as approved by the city engineer, chief of police, and the building official. 16.40.050 Permit--Application information. The City of Arlington shall furnish an application for a permit. The permit shall contain or have attached thereto at a minimum the following, but limited to, information: (1) Name and address of applicant; (2) Location of structure to be moved (present address and tax parcel identification); (3) Location of proposed site to which the structure is to be moved (address and tax parcel identification); (4) Date and time requested for movement of structure; (5) Map or description of requested route to be taken; (6) Height, width and length of structure to be moved when loaded and truck or equipment to be used for moving said structure; (7) Classification of movement; (8) Notification from public utilities of the move. 16.40.060 Permit--Application--Deposits and fees. (a) Every applicant before being issued a permit shall pay an application-filing fee as established by council resolution. (b) An application shall be accompanied by: (1) A cash deposit or corporate surety bond in the sum of one thousand dollars or such greater amount as the building official determines necessary as indemnity for any damage which the city may sustain by reason, damage or injury to any highway, street, alley, sidewalk or other property of the city which may be incidental or caused by the movement of any building, over, along or across any street within the city and to indemnify the city against any claim of damages to persons or private property; (2) A public liability insurance policy providing one hundred thousand dollars or such greater amount as the building official determines necessary to satisfy any claim by private individuals, firms or corporations arising out of, caused by or incidental to the movement of any structure over, along or across any street in the city; (3) A cash deposit or corporate surety performance bond in the sum of five thousand dollars or such greater amount as the building official determines necessary upon the permittee for: (A) Completing the construction, painting and finishing of the exterior of the structure, and (B) Complying with all the requirements of this chapter, the International Building Code, Arlington Municipal Code, Arlington land use code and any other ordinances in effect within the city; including, but limited to, the permittee completing such work within six months from the date of issuance of the permit. In the event the provisions of this subsection are not complied with within the time specified, the sum of five hundred dollars shall be forfeited to the city as a penalty for the default, and this shall be in addition to any other penalties for failure to comply with the provisions of this chapter. 16.40.070 Permit--Condition for granting. As a condition for securing a permit for moving a structure: 29 Current AMC Title 16 with Strikeouts 6/9/10 (1) The permittee shall furnish the city with a set of plans and specifications for the completed structure to include a plot plan showing in detail the placement of the proposed structure upon the lot within the city. If the final destination of the building is not located within the city limits, proof of a valid and current building permit from the appropriate jurisdiction authorizing the placement of the building shall be required; (2) The permittee shall, prior to making application for such permit or within ten days after making such application, cause all of the interior or exterior walls, ceiling and/or floor coverings to be removed to such an extent as may be necessary to permit the building official to inspect or examine the materials and type of construction of such structure to ascertain whether it will comply with the existing building code or other applicable codes or ordinances within the city; and (3) The permittee shall present to the building official certified statements of inspection from the Snohomish County health district relating to the on-site septic system and water supply (if applicable), and the Washington Department of Labor and Industries, Electrical Inspection Division. 16.40.080 Permit--Special requirements. (a) Escort. For Class I, II, III and IV moves, the house mover shall provide at least two off-duty police officers or other approved escort services, which will provide an escort service for the purpose of regulating traffic along the route the structure is being moved. Any off-duty police officer or other approved escort services shall be at the expense of the house mover in addition to any other fees or deposits required. The escort shall permit no variances of the provisions of the permit. (b) Time. The specific time for the structure to be moved shall be determined by the city. Every permit shall become null and void unless such removal is completed and the structure is removed from the public right-of-way within the time specified in the application for such permit providing that the city may extend such time when the moving of any structure is rendered impractical by reason of inclement weather, strikes, or other causes not within the control of the house mover. (c) Lights. No person moving any structure over, upon, along or across any public street shall fail, neglect or refuse to keep a red light (or such other devices as the city may require) at all times at each corner of such structure and at the end of any projection while the structure is located on or upon any public right-of-way. (d) Notice to Utilities. The house mover shall give written notice to the public utilities or agencies designated in the application, not less than three days in advance of the proposed move. (e) Condition of Lot. After the completion of any move, the area or lot upon which the structure was formerly located shall be cleaned up and satisfactorily graded. The sanitary sewer connection (if applicable) shall be capped and marked, the water meter shall be removed and all trash removed to the satisfaction of the building official. 16.40.090 Liability. The permittee shall be liable for any expense, damage or costs in excess of their insurance coverage. 16.40.100 Violation--Penalty. 30 Current AMC Title 16 with Strikeouts 6/9/10 Unless otherwise expressly set forth, any person violating any of the provisions or failing to comply with the requirements of this code is guilty of a misdemeanor as defined in Section 1.04.010. 31 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.48 UNIFORM HOUSING CODE Sections: 16.48.010 Title. 16.48.020 Document adopted by reference. 16.48.030 Administration and enforcement--Rules and regulations. 16.48.040 Administration and enforcement--Building official authority. 16.48.050 Compliance inspection and fees. 16.48.060 Liability limitations. 16.48.010 Title. This chapter shall be known as the Uniform Housing Code of the City of Arlington. 16.48.020 Document adopted by reference. The Uniform Housing Code, 1997 Edition, published by the International Conference of Building Officials, is adopted by reference, subject to the modifications and/or amendments as set forth herein. 16.48.030 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate such rules and regulations as may be necessary to the effective and efficient administration of the code. 16.48.040 Administration and enforcement--Building official authority. The Uniform Housing Code shall be administered and enforced by the city building official. 16.48.050 Compliance inspection and fees. A fee for an on-site compliance inspection by the building official or his representative shall be as set forth by resolution. If the said building is outside the city limits of Arlington, the fee for such inspection shall be as set forth by resolution. Written request for said inspection shall be made to the building department. Upon such application and payment of the fee herein provided, the building official shall notify the applicant of the date and time of the inspection. 16.48.060 Liability limitations. Nothing contained in this chapter or in the Uniform Housing Code is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to conform to the provisions of the Uniform Housing Code. 32 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.52 BUILDING FEES Sections: 16.52.010 Building fee schedule. 16.52.010 Building fee schedule. Building fees shall be established by separate resolution of the city council. 33 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.56 INSTALLATION STANDARDS FOR MANUFACTURED HOMES Sections: 16.56.010 Title. 16.56.020 Document adopted by reference. 16.56.030 Administration and enforcement--Rules and regulations. 16.56.040 Administration and enforcement--Building official authority. 16.56.050 Compliance required, permit required. 16.56.060 Inspection required. 16.56.070 Insignia required, smoke detectors. 16.56.080 Liability limitations. 16.56.010 Title. This chapter shall be known as the installation standards for manufactured homes of the City of Arlington. 16.56.020 Document adopted by reference. The 1994 Edition of the Manufactured Home Installations, including its Appendix A, B, C, D, E, F, G and H, as published by the American National Standard (ANSI A225.1), along with Department of Labor and Industries WAC 296-150M 1501 is adopted by reference as the city's standards for manufactured home installations. 16.56.030 Administration and enforcement--Rules and regulations. The city council may, upon notice and hearing, promulgate such rules and regulations as may be necessary to the effective and efficient administration of the code. 16.56.040 Administration and enforcement--Building official authority. The Standards for the Installation of Manufactured Homes shall be administered and enforced by the city building official. 16.56.050 Compliance required, permit required. No person or firm shall install a manufactured home in the city meeting the definition set forth in the sections adopted by Section 16.56.020 of this chapter (without complying with the standards adopted in said section, or prior to obtaining a manufactured home installation permit from the city). Such permits shall be granted only after proper application by the owner or installer of a manufactured home is made upon forms provided byto the city and the payment of a fee as set by city council resolution. 16.56.060 Inspection required. The city shall inspect the installation of each such manufactured home covered by an installation permit to determine that such installation complies with Sections 16.56.010 through 16.56.070 of this chapter and shall not permit the occupancy of such manufactured home until such inspection and approval have been given. 16.56.070 Insignia required, smoke detectors. 34 Current AMC Title 16 with Strikeouts 6/9/10 All such manufactured homes installed within the city shall contain the insignia of approval of the State of Washington or be exempt from such said insignia, all pursuant to the standards of the State of Washington for the manufacture of such homes and shall be provided with approved smoke detectors conforming to the requirements as set forth in the International Residential Code. 16.56.080 Liability limitations. Nothing contained in this chapter or in the manufactured home installation standards is intended to be, nor shall be, construed to create or form the basis for any liability on the part of the city or its officers, employees or agents, for any injury or damage resulting from the failure of a building to conform to the provisions of the manufactured home installation standards. 35 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.60 SIGNS Sections: 16.60.010 Purpose. 16.60.020 Short title. 16.60.030 General. 16.60.040 Definitions. 16.60.050 Residential. 16.60.060 Business. 16.60.070 Mercantile. 16.60.080 Nonconforming uses. 16.60.090 Temporary signs. 16.60.100 Exemptions. 16.60.110 Nonconforming signs. 16.60.120 Prohibited signs. 16.60.130 Billboards prohibited. 16.60.140 Illumination. 16.60.150 Permits and fees. 16.60.160 Structural requirements. 16.60.170 Inspection--Removal--Safety. 16.60.180 Administration and penalties. 16.60.190 Variances. 16.60.200 Interpretation and severability. 16.60.010 Purpose. (a) The purpose of this chapter is to protect the health, safety, property and welfare of the citizens of the city by establishing standards for the structural design, placement, size and maintenance of all signs and sign structures in the city. Furthermore, it is the purpose of the regulations, standards and criteria of this chapter to permit and encourage the design of signs which are responsive to the needs of the public in locating a business establishment by identification, address and product and/or services information. The economic development of the city has resulted in a great increase in the number of businesses located in the city, with marked increase in the number and size of signs related to those businesses. The proliferation of signs has resulted in a reduced effectiveness of individual signs. As the number, size and intensity of signs increase without regard to quality and placement, the impact of the individual sign is diminished. (b) Lack of control of signs may cause potentially dangerous conflicts between advertising signs and traffic control signs, thus destroying the effectiveness of both. The great increase in automotive traffic experienced within the city has greatly aggravated this conflict. (c) Furthermore, the uncontrolled use of signs and their shapes, motion, colors, illumination and their insistent and distracting demand for attention can be injurious to property values of both business and residential areas of the city, and may seriously detract from the enjoyment and pleasure of the natural beauty of the city. (d) It is recognized that businesses have a right to identify themselves and that this contributes to the economic wellbeing of the community. However, it is felt that this right can be exercised in such a way as to bring benefit to the public without adversely affecting the economic welfare 36 Current AMC Title 16 with Strikeouts 6/9/10 of businesses. The responsible regulation of signs may, in fact, improve business opportunity as a result of the increased attractiveness of the city's environment. 16.60.020 Short title. This chapter shall hereafter be known and cited as the "sign code." 16.60.030 General. (a) The following sign standards by zone are intended to include every zone in the city. The zones are as defined by this title and the official zoning map. Only signs as described herein and may be described under "temporary signs" and "exceptions" will be permitted in each particular zone. (b) If any zone is omitted from this chapter, or if a new zone is created after the enactment of this chapter, no sign shall be permitted therein until this chapter shall be amended to include this zone. 16.60.040 Definitions. (1) "Area, or surface area, of sign" means that area enclosed by one rectangle, the sides of which make contact with the extreme points or edges of the sign, excluding the supporting structure which does not form part of the sign proper or of the display. The "area of a sign" composed of characters or words attached directly to a large uniform building wall surface is the smallest rectangle which encloses the whole group. (2) "Building line" means a line beyond which no building may extend, as established by ordinance. A "building line" in some instances may coincide with the property line. (3) "Location" means a lot, premises, building, wall or any place whatsoever upon which a sign is located. (4) "Marquee" means a canopy or covering structure projecting from and attached to a building. (5) "Multiple dwelling" means any building housing more than two families, unless otherwise defined by this title. (6) "Person" means any individual, corporation, association, firm, partnership, and the like, singular or plural. (7) "Projection" means the distance by which a sign extends over public property or beyond the building line. (8) "Roof line" means either the edge of the roof or the top of the parapet, whichever forms the top line of the building silhouette and, where a building has several roof levels, this roof or parapet shall be the one belonging to that portion of the building on whose wall the sign is located. (9) "Sign" means any letters, figures, design, symbol, trademark, or illuminating device intended to attract attention to any place, subject, person, firm, corporation, public performance, article, machine, or merchandise whatsoever and painted, printed or constructed and displayed in any manner whatsoever out of doors for recognized advertising purposes. However, this shall not include any official court or public notices nor the flag, emblem or insignia of a government, school or religious group when displayed for official purposes. Interior signs, if located on a window or within a distance equal to the greatest dimension of the window and if obviously intended for viewing from the exterior, shall be considered an exterior sign for purposes of this sign code. 37 Current AMC Title 16 with Strikeouts 6/9/10 (A) "Electric sign" means a sign containing electric wiring. This does not include signs illuminated by an exterior floodlight source. (B) "Flat wall sign" means one affixed directly to or painted on or otherwise inscribed on an exterior wall and confined within the limits thereof of any building and which projects from that surface less than twelve inches at all points. (C) "Identity sign" means any sign which carries only the name of the firm, the major enterprise or the principal product offered for sale on the premises, or a combination of these. (D) "Projecting sign" means a sign, other than a wall sign, which projects from and is supported by a wall of a building or structure. (E) "Roof sign" means a sign located on or about the roof of any building. (F) "Temporary sign" means a banner, pennant, poster or advertising display constructed of cloth, canvas, plastic sheet, cardboard, wallboard or other like materials and intended to be displayed for a limited period of time. (10) "Vehicles" mean automobiles, trucks, trailers, railroad cars, construction equipment and other such mobile equipment whose major purpose is other than the display of advertising. 16.60.050 Residential. (a) General. This section of the code shall apply to all zones designated by this title as residential single-family, duplex, multiple-family, highrise apartment or any variety of these. (b) Size. One sign not exceeding two square feet in area shall be permitted per dwelling unit. For multiple dwellings, one or more additional signs totaling twelve square feet in area shall be permitted. (c) Location. Permitted signs may be anywhere on the premises, except as restricted by this title, except that they may not project beyond any property lines and except that, if ground mounted, the top shall be not over five feet above the ground and, if building mounted, shall be flush mounted, shall not be mounted on any roof of the building and shall not project above the roof line. (d) Content. The sign per dwelling unit shall indicate only the name of the occupant and may include the address. The additional sign area permitted for multiple dwellings shall be only for identification of the building. (e) Illumination. Illumination, if used, shall be what is known as white and not colored light and shall not be blinking, fluctuating or moving. Light rays shall shine only upon the sign or upon the property within the premises and shall not spill over the property lines in any direction except by indirect reflection. 16.60.060 Business. (a) General. This section of the sign code shall apply to all zones designated by this title as business. (b) Size. The total sign area of one and one-half square feet for each lineal foot of building frontage or one-half square foot for each lineal foot of lot frontage, whichever results in the larger sign area, but the maximum total area of all permitted signs for any establishment shall not exceed two hundred square feet. Where frontage is on more than one street, only the signs computed with the frontage of that street shall face that street. (c) Location. 38 Current AMC Title 16 with Strikeouts 6/9/10 (1) Signs may be flat walls signs and may be located anywhere on the surface of the building. Signs may be projecting signs only where, in compliance with this title, there is no building setback, and then may project no more than six feet beyond the street property line, may have a maximum height of five feet, and must have a minimum clearance of eight feet above a public sidewalk and fifteen feet above public driveways or alleys. (2) Where a building does not cover the full area of the property, a sign may be freestanding, or ground-supported and may be located anywhere back of the street setback lines except as may be further limited by this title. Such a sign may extend up to twenty feet above the average ground level at the base of the sign except as may be required by this title. (3) Signs may be on the vertical faces of marquees and may project below the lower edge of the marquee not more than twelve inches. The bottom of the marquee signs shall be no less than eight feet above the sidewalk or grade at any point. (4) Roof signs are allowed as provided in Sections S-801 through S-803 of the Uniform Sign Code adopted in Section 16.04.020; provided that no roof signs shall exceed twenty square feet in area nor be more than five feet in height. The size of other signs shall be as otherwise provided in subsection (b) of this section. (d) Illumination. Illumination of signs is permitted but in accordance with the restrictions hereinafter especially set forth for illumination. (e) Highway-oriented Establishments. (1) Automobile service stations, new and used car lots, garden shops and other such businesses which may be defined as outdoor merchandising or highway-oriented enterprises may be permitted to have, per establishment, one identity sign not over twenty-eight feet high above ground level, building mounted, roof mounted or ground mounted, with no part or projection closer to a street property line than five feet except as may be required by this title, and which can in no way block the visibility of approaching traffic. (2) The maximum total area for this sign shall be one hundred fifty square feet with no one side having a surface area greater than seventy-five square feet. (3) Incidental signs indicating services, products, prices, trade information, or other information not including product advertising may be attached to the structure or may be listed on one permanently installed sign structure at least five feet from any property line. (4) No products or product containers or signs shall be located so as to obstruct the vision of approaching traffic to an intersection. (5) The total sign area, excepting the identity sign, shall not exceed eighty square feet. 16.60.070 Mercantile. (a) General. This section of the sign code shall apply to all zones designated by this title as industrial or any variety of it. (b) Size. There is permitted in this zone, for each industrial establishment, one identity sign for each street frontage, each with a maximum area of one square foot for each lineal foot of building street frontage or one-half square foot for each lineal foot of property street frontage, whichever is greater but not to exceed two hundred square feet. (c) Location. Requirements shall be the same as for business zones. See Section 16.60.060(c). (d) Illumination. Illumination of signs is permitted but in accordance with the restrictions hereinafter set forth for illumination. 16.60.080 Nonconforming uses. 39 Current AMC Title 16 with Strikeouts 6/9/10 Any building or land use not conforming to the provisions for the zone in which it is located shall, nevertheless, comply with all the provisions of this sign code for the conforming zone. 16.60.090 Temporary signs. The following signs shall be permitted anywhere within the city and shall not require a permit: (1) Construction signs which identify the architects, engineers, contractors and other individuals or firms involved with the construction, but not including any advertisement of any product, and signs announcing the character of the building enterprise or the purpose for which the building is intended, during the construction period, to a maximum area of sixteen square feet for each firm. The signs shall be confined to the site of the construction and shall be removed within fourteen days of the beginning of the intended use of the project; (2) Real estate signs advertising the sale, rental or lease of the premises or part of the premises on which the signs are displayed, up to a total area of twelve square feet. Such signs shall be removed within seven days of the sale, rental or lease; (3) Political campaign signs announcing the candidates seeking political office and other data pertinent thereto, up to an area of thirty-two square feet for each premises. These signs shall be confined within private property and removed within seven days after the election for which they were made; (4) Street banners advertising a public entertainment or event, is specially approved by the city council and only for locations designated by the city council, during and for fourteen days before and seven days after the event; (5) Show-window signs in a window display of merchandise when incorporated with such a display. They need not be related in content with the display. 16.60.100 Exemptions. The following types of signs are exempted from all the provisions of this chapter, except for construction and safety regulations and the following requirements: (1) Public Signs. Signs of a noncommercial nature and in the public interest, erected by, or on the order of, a public officer in the performance of his public duty, such as safety signs, danger signs, trespassing signs, traffic signs, memorial plaques, signs of historical interest and the like; (2) Institutional. Signs setting forth the name of any simple announcement for any public, charitable, educational or religious institution, located entirely within the premises of that institution, up to an area of twenty-four square feet. Such signs may be illuminated in accordance with the regulations contained hereinafter. If building mounted, these signs shall be flat wall signs and shall not project above the roof line. If ground mounted, the top shall be no more than six feet above ground level; (3) Integral. Names of buildings, dates of erection, monumental citations, commemorative tablets and the like when carved into stone, concrete or similar material or made of bronze, aluminum, or other permanent type construction and made an integral part of the structure; (4) Private Traffic Direction. Signs directing traffic movement onto a premises or within a premises, not exceeding three square feet in area for each sign. Illumination of these signs shall be permitted in accordance with the section hereinafter included on illumination. Horizontal directional signs on and flush with paved areas are exempt from these standards; (5) Small Signs. Signs not exceeding two square feet in area, attached flat against the building, stationary and not illuminated, announcing only the name and occupation of building tenant; 40 Current AMC Title 16 with Strikeouts 6/9/10 (6) Rental. Signs on the premises announcing rooms for rent, table board, apartment or house for rent and not exceeding four square feet in area; (7) Vehicles. Signs on vehicles of any kind, provided the sign is painted or attached directly to the body of the original vehicle and does not project or extend beyond the original manufactured body proper of the vehicle. 16.60.110 Nonconforming signs. Signs existing November 1, 1989 and not conforming to the provisions of this chapter but which were constructed in compliance with previous regulations shall be regarded as nonconforming signs. Section S-301 of the Uniform Building Code, Volume 5, "Signs" is amended by adding thereto the following wording: Provided that presently existing signs not in conformity with the Sign Code as amended may be maintained in their present condition unless hazardous but may not be altered, re-erected, or relocated unless in conformity with the Sign Code. 16.60.120 Prohibited signs. Prohibited are signs which: (1) Contain statements, words, or pictures of an obscene, indecent, or immoral character such as will offend public morals or decency; (2) Contain or are an imitation of an official traffic sign or signal or contain the words "stop," "go slow," "caution," "danger," "warning," or similar words; (3) Are of a size, location, movement, content, coloring, or manner of illumination which may be confused with or construed as a traffic control device on which hide from view any traffic or street sign or signal; (4) Advertise an activity, business, product or service no longer conducted on the premises upon which the sign is located; (5) Move in any manner or have a moving part; (6) Contain or consist of banners, posters, pennants, ribbons, streamers, strings of light bulbs, spinners, or other similarly moving devices unless on private property; (7) May swing or otherwise noticeably move as a result of wind pressure because of the manner of their suspension or attachment; (8) Are erected in such a position as to completely blanket another sign already in place on either side. A sign is said to be blanketing when it hides other signs or a substantial portion thereof at a distance of twenty-five feet; (9) Off-premises signs except directional signs and signs of public interest. 16.60.130 Billboards prohibited. Contracts for billboard advertising may not be renewed in the year following the enactment of this sign code, and no billboard advertising will be allowed within the city after the expiration of the contracts. 16.60.140 Illumination. (a) The light from any illuminated sign shall be so shaded, shielded or directed that the light intensity or brightness will not be objectionable to surrounding areas. (b) No sign shall have blinking, flashing or fluttering lights or other illuminating device which has a changing light intensity, brightness or color. Beacon lights are not permitted. 41 Current AMC Title 16 with Strikeouts 6/9/10 (c) No colored lights shall be used at any location or in any manner so as to be confused with or construed as traffic control devices. (d) Neither the direct, nor reflected light from primary light sources shall create a traffic hazard to operators of motor vehicles on public thoroughfares. (e) No exposed reflective type bulbs and no strobe light or incandescent lamp which exceeds fifteen watts shall be used on the exterior surface of any sign so as to expose the face of the bulb, light or lamp to any public street or adjacent property. 16.60.150 Permits and fees. (a) Permit Requirements. After the effective date of the ordinance codified herein, no sign shall be erected, altered or relocated without a permit issued by the building inspector, except as otherwise provided herein. (b) Application for Permit. Application for a permit shall be made in writing, in duplicate, upon forms prescribed and provided by the building inspector, to the building inspector, and shall contain the following information: (1) Name, address and telephone number of applicant and sign erector; (2) Location of building, structure, or land to which or upon which the sign is to be erected; (3) A detailed drawing or blueprint showing a description of the construction details of the sign and showing the lettering and/or pictorial matter composing the sign, position of lighting or other extraneous devices, a location plan showing the position of the sign on any building or land, and its position in relation to nearby buildings or structures and to any private or public street or highway; (4) Written consent of the owner of the building, structure or land to which or on which the sign is to be erected in the event the applicant is not the owner thereof. (c) Repealed by Ord. 1214-A. (d) Issuance of Permit. It shall be the duty of the building inspector upon the filing of an application for a permit to erect a sign, to examine such plans, specifications and other data submitted to him with the application, and if necessary, the building or premises upon which it is proposed to erect the sign or other advertising structure. If it shall appear that the proposed sign is in compliance with all the requirements of the sign code and other city laws and ordinances, he shall then, within fifteen days, issue a permit for the erection of the proposed sign. If the sign authorized under any such permit has not been completed within six months from the date of the issuance of such permit, the permit shall become null and void, but may be renewed within thirty days from the expiration thereof, for good cause shown upon payment of an additional fee of five dollars. (e) Permit Exceptions. The following operations shall not be considered as creating a sign and, therefore, shall not require a sign permit: (1) Replacing Copy. The changing of the advertising copy or message on an approved painted or printed sign or on a theatre marquee and similar approved signs which are specifically designed for the use of replaceable copy; (2) Maintenance. Painting, repainting, cleaning and other normal maintenance and repair of a sign or a sign structure unless a structural change is made; (3) Temporary Signs. Temporary signs under Section 16.32.100 and signs under "Exemptions," Section 16.60.100 are also exempt from permit requirements. 16.60.160 Structural requirements. 42 Current AMC Title 16 with Strikeouts 6/9/10 All signs shall comply with the pertinent requirements of the city building code. 16.60.170 Inspection-Removal-Safety. (a) Inspection. Signs for which a permit is required may be inspected periodically by the building inspector for compliance with the sign code and other codes of the city. (b) Maintenance. All signs and components thereof shall be kept in good repair and in safe, neat, clean and attractive condition. (c) Removal of Sign. The building inspector may order the removal of any sign erected or maintained in violation of the sign code. The inspector shall give thirty days' notice in writing to the owner of such sign, or of the building, structure or premises on which such sign is located, to remove the sign or to bring it into compliance. The building inspector may remove a sign immediately and without notice if, in his opinion, the condition of the sign is such as to present an immediate threat to the safety of the public. (d) Abandoned Signs. A sign shall be removed by the owner or lessee of the premises upon which the sign is located when the business which it advertises is no longer conducted on the premises. If the owner or lessee fails to remove it, the building inspector shall give the owner fifteen days' written notice to remove it. Upon failure to comply with this notice, the building official or his duly authorized representative may remove the sign and shall assess all costs and expenses incurred against the land or building on which such sign is located. Where a successor to a defunct business agrees to maintain the signs as provided in this code, this removal requirement shall not apply. 16.60.180 Administration and penalties. (a) Enforcement. The building inspector is authorized and directed to enforce all the provisions of this sign code. Upon presentation of proper credentials, the building inspector or his duly authorized representative may enter at reasonable times any building, structure or premises in the city to perform any duty imposed upon him by this sign code. (b) Interpretation. Where there is any ambiguity or dispute concerning the interpretation of this sign code, the decision of the building inspector shall prevail, subject to appeal as provided herein. (c) Review and Appeal. Any person aggrieved by any decision of the building inspector relative to the provisions of this sign code, or the city of Arlington, may appeal such decision to the planning commission as provided in this title, and shall comply with all procedural requirements of Chapter 20.19. (d) Penalties. (1) Any person who violates any of the provisions of the sign code hereby adopted or fails to comply therewith, or who violates or fails to comply with any order made thereunder, or who builds in violation of any detailed statement of specifications or plans submitted and approved thereunder, or any certificate or permit issued thereunder, and from which no appeal has been taken, or who fails to comply with such an order as affirmed or modified by the building inspector or by a board or court of competent jurisdiction, within the time fixed herein, shall severally for each and every such violation and noncompliance respectively, be guilty of a misdemeanor, punishable by a fine of not more than five hundred dollars or by imprisonment for not more than six months or by both such fine and imprisonment. The imposition of one penalty for any violation shall not excuse the violation or permit it to continue; and all such persons shall be required to correct or remedy such violations or defects within a reasonable time; and when 43 Current AMC Title 16 with Strikeouts 6/9/10 not otherwise specified, each ten days that prohibited conditions are maintained shall constitute a separate offense. (2) The application of the above penalty shall not be held to prevent the enforced removal of prohibited conditions. 16.60.190 Variances. The city planning commission may, in appropriate cases after public notice and hearing and subject to certain safeguards, vary or modify the application of this chapter in harmony with its general purpose and intent. Proper notification and procedure shall be followed as outlined under the variance procedure of Arlington Municipal Code Chapter 20.17. 16.60.200 Interpretation and severability. (a) Interpretation. In interpretating the provisions of this sign code, they shall be held to be the minimum requirements for the promotion of the public health, safety, comfort, convenience and general welfare. It is not intended that this code shall interfere with or abrogate or annul easements, covenants or other agreements between parties, provided however, that where this code imposes a greater restriction upon the uses of structures or land or requires larger space than is required by other codes, rules or private agreements, or other conflict exists, the provisions of this code shall govern. This preference applies to the Uniform Building Code, including Volume V thereof, heretofore adopted. (b) Severability. If any section, subsection, sentence, clause or phrase of this code is for any reason held to be invalid or unconstitutional, such invalidity or constitutionality of the remaining portions of the code, it being expressly declared that this code and each section, subsection, sentence, clause and phrase hereof would have been prepared, proposed, and adopted irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional. 44 Current AMC Title 16 with Strikeouts 6/9/10 Chapters 16.70, 16.71, 16.72, 16.73, 16.74, 16.75, and 16.76 will be revised and recodified in a NEW Title 21 of the AMC. Revisions to these Chapters will come to the Council in July. Chapter 16.70 TELECOMMUNICATIONS FACILITIES Sections: 16.70.010 Purpose. 16.70.020 Definitions. 16.70.030 Master land use permit. 16.70.040 Telecommunications franchise required. 16.70.050 Telecommunications right-of-way use permit required. 16.70.060 Cable television franchise required. 16.70.070 Facilities lease required. 16.70.080 Construction approval required. 16.70.090 Application to existing franchise ordinances, agreements, leases and permits-Effect of other laws. 16.70.100 General penalties. 16.70.110 Other remedies. 16.70.010 Purpose. The purpose and intent of this chapter is to: (1) Establish a local policy concerning telecommunications providers and service; (2) Establish clear local guidelines, standards and time frames for the exercise of local authority with respect to the regulation of telecommunications providers and services; (3) Promote competition in telecommunications providers and services; (4) Minimize unnecessary local regulation of telecommunications providers and services; (5) Encourage the provision of advanced and competitive telecommunications services on the widest possible basis to the business, institutions and residents of the city; (6) Permit and manage reasonable access to the public ways of the city for telecommunications purposes on a competitively neutral basis; (7) Conserve the limited physical capacity of the public ways held in public trust by the city; (8) Assure that the city's current and ongoing costs of granting and regulating private access to and use of the public ways are fully paid by the persons seeking such access and causing such costs; (9) Secure fair and reasonable compensation to the city and the residents of the city for permitting private use of the public ways; (10) Assure that all telecommunications carriers providing facilities or services within the city comply with the ordinances, rules and regulations of the city; (11) Assure that the city can continue to fairly and responsibly protect the public health, safety and welfare; and (12) Enable the city to discharge its public trust consistent with rapidly evolving federal and state regulatory policies, industry competition and technological development. 16.70.020 Definitions. For purposes of this chapter, the following words shall have the following meanings: 45 Current AMC Title 16 with Strikeouts 6/9/10 "Access channels" means channels set aside by a franchisee exclusively for noncommercial public, educational, or governmental use (commonly referred to as "PEG" channels). "Addressability" means the ability of a system allowing a franchise to authorize specific equipment to receive, change or to cancel any or all specified programming. "Affiliate" means a person that (directly or indirectly) owns or controls, is owned or controlled by, or is under common ownership or control with another person. "Applicant" means any person or entity that applies for any permit or franchise pursuant to this chapter. "Basic cable service" means the lowest level of service regularly provided to all subscribers that includes the retransmission of local broadcast signals. "Cable act" means the Cable Communications Policy Act of 1984, 47 U.S.C. Section 532, et seq., as now and hereafter amended. "Cable facilities" means equipment and wiring used to transmit audio and video signals to subscribers. "Cable service" for the purpose of this chapter shall have the same meaning provided by the Cable Act. "Cable system" means a facility, consisting a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service and other service to subscribers. "Cablecast" means the distribution of programming which originates within the facilities of the cable television system. "Channel" or "cable channel" means a portion of the electromagnetic frequency spectrum which is used in a cable system and which is capable of delivering a television signal as defined by the Federal Communications Commission. "Character generator" means a device used to generate alphanumerical programming to be cablecast on a cable channel. "City" means the city of Arlington, Washington. "City property" means and includes all real property owned by the city, other than public streets and utility easements as those terms are defined herein, and all property held in a proprietary capacity by the city, which are not subject to right-of-way licensing and franchising as provided in the chapter. "Council" means the city council of the city of Arlington, Washington acting in its official capacity. "Data communication" means: (1) The transmission of encoded information; or (2) The transmission of data from one point to another. "Dwelling units" means residential living facilities as distinguished from temporary lodging facilities such as hospitals, hotel and motel rooms and dormitories, and includes single- family residential units and individual apartments, condominium units, accessory dwellings, mobile homes, extended care facilities and other multiple-family residential units. "Emergency" means a condition of imminent danger to the health, safety, and welfare of property or persons located within the city including, without limitation, damage to persons or property from natural consequences, such as storms, earthquakes, riots or wars. 46 Current AMC Title 16 with Strikeouts 6/9/10 "Excess capacity" means the volume or capacity in any existing or future duct, conduit, manhole, handhole or other utility facility within the public way that is or will be available for use for additional telecommunications facilities. "FCC" or "Federal Communications Commission" means the Federal Administrative Agency, or lawful successor, authorized to regulate and oversee telecommunications carriers, service and providers on a national level. "Fiber optics" means the technology of guiding and projecting light for use as a communications medium. "Franchise" means the initial authorization, or renewal thereof, issued by the franchising authority, whether such authorization is designated as a franchise, permit, ordinance, resolution, contract, certificate or otherwise, which authorizes construction and operation of the cable system for the purpose of offering cable service or other service to subscribers. "Franchisee" means the person, firm or corporation to whom or which a franchise, as herein above defined, is granted by the council under this chapter and the lawful successor, transferee or assignee of said person, firm or corporation subject to such conditions as may be defined in the chapter. "Gross revenues" means any and all revenues (as that term is defined by generally accepted accounting principles) received directly or indirectly from all sources which arise out of or are derived from the operation of a franchisee's cable system in the city. When the revenue of the franchisee includes gross revenues from sources outside of the city, a franchisee shall prorate the gross revenues among its sources by multiplying such gross revenues by a fraction, the numerator of which is the number of franchisee's subscribers in the city and the denominator of which is the total number of all a franchisee's subscribers. "Gross revenues" shall not include the following: (1) Fees and payments from subscribers who do not live in the city; (2) Taxes on services furnished by a franchisee, which are imposed on any subscriber or used by any government unit, agency or instrumentality and which are collected by a franchisee for such entity; (3) Bad debt write-offs; (4) Revenue from the sale of equipment or other assets of the cable system to persons not purchasing services from the cable system; (5) Revenue from transactions involving real property owned or leased by the franchisee; (6) Amounts collected from subscribers as a franchise fee to be paid to city. "Headend" means the electronic equipment located at the start of a cable system, usually including antennas, preamplifiers, frequency converters, demodulators and related equipment. "Installation" means the connection of the cable system from feeder cable to subscribers' receivers. "Institutional networks (I-Nets)" means that portion of a cable system which is designated principally for the provision of non-entertainment services to public schools, or public agencies such as public libraries separate and distinct from the subscriber network, or on secured channels of the subscriber network. "Interactive services" means services provided to subscribers where the subscriber: (1) receives information consisting of either television or other signals and transmits signals generated by the subscriber or equipment under his/her control for the purpose of selecting what information shall be transmitted to the subscriber or for any other purpose; and (2) has the ability to transmit signals to any other location for any purpose. 47 Current AMC Title 16 with Strikeouts 6/9/10 "Office" means the person or entity designated by the city as being responsible for the administration of a franchise for the city. "Operator" means the person, firm or corporation to whom a franchise is granted pursuant to the provisions of this chapter. "Other ways" means the highways, streets, alleys, utility easements or other rights-of-way within the city, but under the jurisdiction and control of a governmental entity other than the city. "Person" means and includes corporations, companies, associations, joint stock companies or associations, firms, partnerships, limited liability companies and individuals and includes their lessors, trustees and receivers. "Premium services" means video programming offered on a pay-per-channel or pay-per- program basis. "Property of franchise" means all property owned, installed or used by a franchisee in the conduct of its business in the city under the authority of a franchise granted pursuant to this chapter. "Proposal" means the response, by an individual or organization, to a request by the city regarding the provision of cable services; or an unsolicited plan submitted by an individual or organization seeking to provide cable services in the city. "Public street" means any highway, street, alley or other public right-of-way for motor vehicle travel under the jurisdiction and control of the city which has been acquired, established, dedicated or devoted to highway purposes not inconsistent with telecommunications facilities. "Public way" means and includes all public streets and utility easements, as those terms are defined herein, now or hereafter owned by the city, but only to the extent of the city's right, title, interest or authority to grant a license or franchise to occupy and use such streets and easements for telecommunications facilities. "State" means the state of Washington. "Subscriber" means a person or entity or user of the cable system who lawfully receives cable services or other service therefrom with franchisee's express permission. "Surplus space" means that portion of the usable space on a utility pole which has the necessary clearance from other pole users, as required by the federal or state orders and regulations, to allow its use by a telecommunications carrier for a pole attachment. "Telecommunications carrier" means and includes every person that directly or indirectly owns, controls, operates or manages plant, equipment or property within the city, used or to be used for the purpose of offering telecommunications service. "Telecommunications facilities" means the plant, equipment and property, including but not limited to, cables, wires, conduits, ducts, pedestals, antennae, electronics and other appurtenances used or to be used to transmit, receive, distribute, provide or offer telecommunications services. "Telecommunications provider" means and includes every person who provides telecommunications services over telecommunications facilities without any ownership or management control of the facilities. "Telecommunications service" means the providing or offering for rent, sale or lease, or in exchange for other value received, of the transmittal of voice, data, image, graphic and video programming information between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or similar facilities, with or without benefit of any closed transmission medium. "Telecommunications system" See "Telecommunications facilities." 48 Current AMC Title 16 with Strikeouts 6/9/10 "Underground facilities" means utility and telecommunications facilities located under the surface of the ground, excluding the underground foundations or supports for overhead facilities. "Usable space" means the total distance between the top of a utility pole and the lowest possible attachment point that provides the minimum allowable vertical clearance as specified in any federal or state orders and regulations. "Utility easement" means any easement owned by the city and acquired, established, dedicated or devoted for public utility purposes not inconsistent with telecommunications facilities. "Utility facilities" means the plant, equipment and property, including but not limited to the poles, pipes, mains, conduits, ducts, cables, wires, plant and equipment located under, on or above the surface of the ground within the public ways of the city and used or to be used for the purpose of providing utility or telecommunications services. 16.70.030 Master land use permit. Except as otherwise provided herein, all cable operators, telecommunications carriers, and telecommunications providers engaged in the business of transmitting, supplying or furnishing of cable service or telecommunications originating or terminating in the city shall apply for and obtain a master land use permit with the city department of planning and community development pursuant to Chapter 16.71. 16.70.040 Telecommunications franchise required. Except as otherwise provided herein, any telecommunications carrier who desires to construct, install, operate, maintain or otherwise locate telecommunications facilities in, under, over or across any public way of the city, and to also provide telecommunications service to persons or areas in the city, shall first obtain franchise granting the use of such of such public ways from the city pursuant to Section 16.70.030. 16.70.050 Telecommunications right-of-way use permit required. Except as otherwise provided herein, any telecommunications carrier who desires to construct, install, operate, maintain, or otherwise locate telecommunications facilities in, under, over or across any public way of the city for the sole purpose of providing telecommunications service to persons and areas outside the city shall first obtain a telecommunications right-of-way use permit granting the use of such public ways from the city pursuant to Chapter 16.72. 16.70.060 Cable television franchise required. Except as otherwise provided herein, any telecommunications carrier or other person who desires to construct, install, operate, maintain or locate cable or telecommunications facilities in any public way in the city for the purpose of providing cable service to persons in the city shall first obtain a cable franchise from the city pursuant to Chapter 16.74. 16.70.070 Facilities lease required. No telecommunications carrier or other entity who desires to locate telecommunications or other equipment on city property shall locate such facilities or equipment on city property unless granted a facilities lease from the city. The city council reserves unto itself the sole discretion to lease city property for telecommunications and other facilities, and no vested or 49 Current AMC Title 16 with Strikeouts 6/9/10 other right shall be created by this section or any provision of this chapter applicable to such facilities leases. 16.70.080 Construction approval required. Except as otherwise provided herein, the holder of a permit or franchise granted pursuant this chapter shall, in addition to said permit or franchise, be required to obtain a construction permit from the city pursuant to Chapter 16.76. No work, construction, development, excavation, or installation of any equipment or facilities shall take place within the public ways until such time as the construction approval is issued. 16.70.090 Application to existing franchise ordinances, agreements, leases and permits- Effect of other laws. (a) This chapter shall have no effect on any existing franchise ordinance, franchise agreement, lease, or permit to use or occupy a public way in the city until: (1) The expiration of said franchise ordinance, agreement, lease, or permit; or (2) The amendment to an unexpired franchise ordinance, franchise agreement, lease, or permit, unless both parties agree to defer full compliance to a specific date not later than the present expiration date. (b) Nothing in this Chapter shall be deemed to create an obligation upon any person for which the city is forbidden to require a permit, license, or franchise by federal, state, or other law. 16.70.100 General penalties. (a) Civil Penalty. (1) Any person, and the officers, directors, managing agents, or partners of any corporation, firm, partnership or other organization or business violating or failing to comply with any of the provisions of this chapter shall be subject to a cumulative penalty in the amount of one hundred dollars per day for each violation from the date set for compliance until compliance with the order is achieved. (2) In addition to any penalty which may be imposed by the city, any person violating or failing to comply with any of the provisions of this chapter shall be liable for all damage to public or private property arising from such violation, including the cost of restoring the affected area to its condition prior to the violation. (3) The penalty imposed by this section shall be collected by civil action brought in the name of the city. The responsible official shall notify the city attorney in writing of the name of any person subject to the penalty, and the city attorney shall, with the assistance of the responsible official, take appropriate action to collect the penalty. (4) The violator may show as full or partial mitigation of liability: (A) That the violation giving rise to the action was caused by the wilful act, or neglect, or abuse of another; or (B) That correction of the violation was commenced promptly upon receipt of the notice thereof, but that full compliance within the time specified was prevented by inability to obtain necessary materials or labor, inability to gain access to the subject structure, or other condition or circumstance beyond the control of the violator. (b) Criminal Penalties. (1) Any person, and the officers, directors, managing agents, or partners of any corporation, firm, partnership or other organization or business violating or failing to comply with any of the 50 Current AMC Title 16 with Strikeouts 6/9/10 applicable provisions of this chapter and who has had a judgment entered against him or her pursuant to Section 16.70.100(a)(3) or its predecessors within the past five years shall be subject to criminal prosecution and upon conviction of subsequent violation shall be fined in a sum not exceeding five thousand dollars or be imprisoned for a term not exceeding one year or be both fined and imprisoned. Each day of noncompliance with any of the applicable provisions of the chapter shall constitute a separate offense. (2) The above criminal penalty may also be imposed: (A) For any other violation of this chapter for which corrective action is not possible; (B) For any wilful, intentional, or bad faith failure or refusal to comply with the standards or requirements of this chapter; and (C) For any violation of a stop work order issued pursuant to this chapter. (3) In addition to any criminal penalty which may be imposed by the city, a violator may also be liable for damages and costs of restoration described in Section 16.70.100(a), above. (c) Additional Relief. The responsible official may seek legal or equitable relief to enjoin any acts or practices and abate any condition which constitutes or will constitute a violation of the applicable provisions of this chapter when civil or criminal penalties are inadequate to effect compliance. 16.70.110 Other remedies. Nothing in this chapter shall be construed as limiting any judicial remedies that the city may have, at law or in equity, for enforcement of this chapter. 51 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.71 MASTER LAND USE PERMITS FOR TELECOMMUNICATIONS CARRIERS AND PROVIDERS Sections: 16.71.010 Purpose of master land use permit registration. 16.71.020 Master land use permit required. 16.71.030 Master land use permit fees. 16.71.010 Purpose of master land use permit registration. The purpose of master land use permit is to: (1) Provide the city with accurate and current information concerning the cable operators and telecommunications carriers and providers who offer or provide services within the city, or that own or operate facilities within the city; (2) Assist the city in administration and enforcement of permit process in this chapter; (3) Assist the city in the collection and enforcement of any municipal taxes, franchise fees, license fees or charges that may be due the city; and (4) Assist the city in monitoring compliance with local, state and federal laws. 16.71.020 Master land use permit required. All cable operators, telecommunications carriers, and telecommunications providers that offer or provide any cable service or telecommunications service for a fee directly to the public, either within the city, or outside the corporate limits from cable or telecommunications facilities within the city, shall apply for and obtain a master land use permit with the city department of planning and community development pursuant to this chapter on the master land use permit application form to be provided by the responsible official, which shall include the following: (1) The identity and legal status of the applicant, including any affiliates. (2) The name, address, telephone number, and title of the officer, agent or employee responsible for the accuracy of the master land use permit application statement. (3) A description of applicant's existing or proposed facilities within the city. (4) A description of the service that the applicant intends to offer or provide, or is currently offering or providing, to persons, firms, businesses or institutions within the city. (5) Information sufficient to determine whether the applicant is subject to the public way permitting and/or franchising requirements imposed by this chapter. (6) Information sufficient to determine whether the transmission, origination or receipt of the services provided or to be provided by the applicant constitutes an occupation or privilege subject to any municipal telecommunications tax, utility tax or other occupation tax imposed by the city. (7) Information sufficient to determine that the applicant has applied for and received any certificate of authority required by any federal or state agency to provide telecommunications services or facilities within the city. (8) Information sufficient to determine that the applicant has applied for and received any construction permit, operating license or other approvals required by the Federal Communications Commission to provide services or construct facilities within the city. If the master land use permit form does not specifically request information as set forth above then it is the applicant's responsibility to provide the information attached to the form. 52 Current AMC Title 16 with Strikeouts 6/9/10 16.71.030 Master land use permit fees. Each application for a master land use permit shall be accompanied by an application fee which shall be set by the city council by ordinance. This fee shall be paid prior to issuance of permit. All reimbursable expenses as described by the fee ordinance will be the responsibility of the applicant as well. 53 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.72 TELECOMMUNICATIONS FRANCHISE Sections: 16.72.010 Telecommunications franchise. 16.72.020 Franchise application. 16.72.030 Determination by the city. 16.72.040 Agreement. 16.72.050 Nonexclusive grant. 16.72.060 Terms of franchise grant. 16.72.070 Rights granted. 16.72.080 Franchise territory. 16.72.090 Compensation to the city. 16.72.100 Amendment of franchise grant. 16.72.110 Renewal application. 16.72.120 Renewal determination. 16.72.130 Obligation to cure as a condition of renewal. 16.72.010 Telecommunications franchise. A telecommunications franchise shall be required of any telecommunications carrier or other person who desires to occupy public ways of the city and to provide telecommunications services to any person or area in the city. 16.72.020 Franchise application. Any person that desires a telecommunications franchise pursuant to this chapter shall file an application with the city which shall include the following: (1) The identity of the applicant, including all affiliates of the applicant. (2) A description of the services that are or will be offered or provided by the applicant over its existing or proposed facilities. (3) A description of the transmission medium that will be used by the franchise to offer its existing or proposed facilities. (4) Preliminary engineering plans, specifications and a network map of the facilities to be located within the city, all in sufficient detail to identify: (A) The location and route requested for applicant's proposed facilities; (B) The location of all overhead and underground public utility, telecommunication, cable, water, sewer drainage and other facilities in the public way along the proposed route; (C) The location(s), if any, for interconnection with the facilities of other telecommunications carriers and cable operators; (D) The specific trees, structures, improvements, facilities and obstructions, if any, that applicant proposes to temporarily or permanently remove or relocate. (5) If applicant is proposing to install overhead facilities, evidence that surplus space is available for locating its facilities on existing utility poles along the proposed route. (6) If applicant is proposing an underground installation in existing ducts or conduits within the public ways, information in sufficient detail to identify: (A) The excess capacity currently available in such ducts or conduits before installation of applicant's facilities; 54 Current AMC Title 16 with Strikeouts 6/9/10 (B) The excess capacity, if any, that will exist in such ducts or conduits after installation of applicant's facilities. (7) If applicant is proposing an underground installation in existing ducts or conduits to be constructed within the public ways: (A) The location proposed for the new ducts or conduits; (B) The excess capacity that will exist in such ducts or conduits after installation of applicant's facilities. (8) A preliminary construction schedule and completion dates. (9) A preliminary traffic control plan in accordance with the city's adopted street standards. (10) Audited financial statements prepared and certified by an accredited accountant in accordance with generally accepted accounting principles demonstrating the applicant's financial ability to construct, operate, maintain, relocate and remove the facilities. (11) Information in sufficient detail to establish the applicant's technical qualifications, experience and expertise regarding the facilities and services described in the application. (12) Information to establish that the applicant has obtained all other governmental approvals and permits to construct and operate the facilities and to offer or provide the telecommunications or other services. (13) Whether the applicant intends to provide cable service, video dialtone service or other video programming service, and sufficient information to determine whether such service is subject to cable franchising. (14) An accurate map showing the location of any existing telecommunications facilities in the city that applicant intends to use or lease. (15) A description of the services or facilities that the applicant will offer or make available to the city that applicant intends to use or lease. (16) A description of applicant's access and line extension policies. (17) The area or areas of the city the applicant desires to serve and a schedule for build-out to the entire franchise area. (18) All fees, deposits or charges required pursuant to Section 16.70.060. (19) Such other and further information as may be requested by the city manager. (20) An application fee which shall be set by the city council by resolution. 16.72.030 Determination by the city. Within one hundred twenty days after receiving a complete application under Chapter 16.71, the city's responsible official shall issue a written determination recommending the granting or denial of the application in whole or in part. Prior to granting or denying a franchise under this section, the city council shall conduct a public hearing and make a decision based upon the following standards: (1) The financial and technical ability of the applicant. (2) The legal ability of the applicant. (3) The capacity of the public ways to accommodate the applicant's proposed facilities. (4) The capacity of the public ways to accommodate additional utility and telecommunications facilities if the franchise is granted. (5) The damage or disruption, if any, of public facilities, improvements, service, travel and landscaping if the franchise is granted. (6) The public interest in minimizing the cost and disruption of construction within the public ways. 55 Current AMC Title 16 with Strikeouts 6/9/10 (7) The service that applicant will provide to the community and region. (8) The effect, if any, on pubic health, safety and welfare if the franchise requested is granted. (9) The availability of alternate routes and/or locations for the proposed facilities. (10) Applicable federal and state telecommunications laws, regulations and policies. (11) Such other factors as may demonstrate that the grant to use the public ways will serve the community interest. (12) That the requirements of RCW 35A.47.040 have been complied with. If the application is denied, the written determination shall include the reason for denial. 16.72.040 Agreement. No franchise shall be deemed to have been granted hereunder until the applicant and the city have executed a written agreement setting forth the particular terms and provisions under which the franchise has been granted the right to occupy and use public ways of the city. 16.72.050 Nonexclusive grant. No franchise granted under this chapter shall confer any exclusive right, privilege, license or franchise to occupy or use the public ways of the city for delivery to telecommunications services or any other purposes. 16.72.060 Terms of franchise grant. Unless otherwise specified in a franchise agreement, a telecommunications franchise granted hereunder shall be valid for a term of ten years. 16.72.070 Rights granted. No franchise granted under this chapter shall convey any right, title or interest in the public ways, but shall be deemed a franchise only to use and occupy the public ways for the limited purposes and term stated in the grant. Further, no franchise shall be construed as any warranty of title. 16.72.080 Franchise territory. A telecommunications franchise granted under this chapter shall be limited to the specific public ways necessary to serve such areas. 16.72.090 Compensation to the city. Each franchise granted under this chapter is subject to the city's right, which is expressly reserved, to annually fix a fair and reasonable compensation to be paid for the franchise rights granted to the franchisee; provided, nothing in this chapter shall prohibit the city and a franchise from agreeing to the compensation to be paid. 16.72.100 Amendment of franchise grant. A new franchise application and grant shall be required of any telecommunications carrier that desires to extend its franchise territory or to locate its telecommunications facilities in public ways of the city which are not included in a franchise previously granted under this section. If ordered by the city to locate or relocate its telecommunications facilities in public ways not included in a previously granted franchise, the city shall grant a franchise amendment without further application. 56 Current AMC Title 16 with Strikeouts 6/9/10 16.72.110 Renewal application. A franchisee that desires to renew its franchise under this chapter shall, not more than one hundred eighty days nor less than one hundred twenty days before expiration of the current franchise, file an application with the city for renewal of its franchise which shall include the following: (1) The information required pursuant to Section 16.72.020. (2) Any information required pursuant to the franchise agreement between the city and the grantee. (3) All deposits or charges required pursuant to this chapter. (4) An application fee which shall be set by the city council by resolution. 16.72.120 Renewal determination. Within one hundred twenty days after receiving a complete application for renewal under Section 16.72.110 of this chapter, the city shall issue a written determination granting or denying the renewal application in whole or in part. Prior to granting or denying renewal of a franchise under this section, the city council shall conduct a public hearing and make a decision based upon the following standards. If the renewal application is denied, the written determination shall include the reasons for nonrenewal. (1) The financial and technical ability of the applicant. (2) The legal ability of the applicant. (3) The continuing capacity of the public ways to accommodate the applicant's existing facilities. (4) The applicant's compliance with the requirements of this chapter and the franchise agreement. (5) Applicable federal, state and local telecommunications laws, rules and policies. (6) Such other factors as may demonstrate that the continued grant to use the public ways will serve the community interest. 16.72.130 Obligation to cure as a condition of renewal. No franchise shall be renewed until any ongoing violations or defaults in the franchisee's performance of the franchise agreement, or of the requirements of this chapter, have been cured, or a plan detailing the corrective action to be taken by the franchisee has been approved by the city. 57 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.73 TELECOMMUNICATIONS RIGHT-OF-WAY USE PERMITS Sections: 16.73.010 Telecommunications right-of-way use permit. 16.73.020 Telecommunications right-of-way use permit-Application. 16.73.030 Issuance/denial of telecommunications right-of-way use permit. 16.73.040 Agreement. 16.73.050 Nonexclusive grant. 16.73.060 Rights granted. 16.73.070 Terms of telecommunications right-of-way use permit. 16.73.080 Telecommunications right-of-way permit route. 16.73.090 Service to city users. 16.73.100 Compensation to the city. 16.73.110 Amendment of permit. 16.73.120 Renewal of telecommunications right-of-way use permit. 16.73.130 Standards for renewal of permits. 16.73.140 Obligation to cure as a condition of renewal. 16.73.010 Telecommunications right-of-way use permit. A telecommunications right-of-way permit shall be required of any telecommunications carrier who desires to occupy specific public ways of the city for the sole purpose of providing telecommunications services to persons or areas outside the city. 16.73.020 Telecommunications right-of-way use permit--Application. Any person that desires a telecommunications right-of-way use permit pursuant to this chapter shall file application with the city which shall include the following information (if different than the information requested under the franchise application in Section 16.72.020): (1) The identity of the applicant, including all affiliates of the applicant. (2) A description of the telecommunications services that are or will be offered or provided by the applicant over its telecommunications facilities. (3) A description of the transmission medium that will be used by the applicant to offer or provide such telecommunications services. (4) Preliminary engineering plans, specifications and a network map of the facilities to be located within the city, all in sufficient detail to identify: (A) The location and route requested for applicant's proposed telecommunications facilities; (B) The location of all overhead and underground public utility, telecommunications, cable, water, sewer drainage and other facilities in the public way along the proposed route; (C) The location(s), if any, for interconnection with the telecommunications facilities or other telecommunications carriers; (D) The specific trees, structure, improvements, facilities and obstructions, if any, that applicant proposes to temporarily or permanently remove or relocate. (5) If applicant is proposing to install overhead facilities, evidence that surplus space is available for locating its telecommunications facilities on existing utility poles along the proposed route. 58 Current AMC Title 16 with Strikeouts 6/9/10 (6) If applicant is proposing an underground installation in existing ducts or conduits within the public ways, information in sufficient detail to identify: (A) The excess capacity currently available in such ducts or conduits before installation of applicant's telecommunications facilities; (B) The excess capacity, if any, that will exist in such ducts or conduits after installation of applicant's telecommunications facilities. (7) If applicant is proposing an underground installation within new ducts or conduits to be constructed within the public ways: (A) The location proposed for the new ducts or conduits; (B) The excess capacity that will exist in such ducts or conduits after installation of applicant's telecommunications facilities. (8) A preliminary construction schedule and completion date. (9) A preliminary traffic control plan in accordance with the city's adopted street standards. (10) Financial statements prepared in accordance with generally accepted accounting principles demonstrating the applicant's financial ability to construct, operate, maintain, relocate had remove the facilities. (11) Information in sufficient detail to establish the applicant's technical qualifications, experience and expertise regarding the telecommunications facilities and services described in the application. (12) Information to establish that the applicant has obtained all other governmental approvals and permits to construct and operate the facilities, and to offer or provide the telecommunications services. (13) All deposits or charges required pursuant to this chapter. (14) An application fee which shall be set by the city council by resolution. 16.73.030 Issuance/denial of telecommunications right-of-way use permit. Within one hundred twenty days after receiving a complete application under Section 16.73.020, the city shall issue a written determination granting or denying the permit in whole or in part. Prior to granting or denying a permit under this section, the city council shall conduct a public hearing and make a decision based upon the following standards. If the permit is denied, the written determination shall include the reason(s) for denial. (1) The financial and technical ability of the applicant. (2) The legal ability of the applicant. (3) The capacity of the public ways to accommodate the applicant's proposed facilities. (4) The capacity of the public ways to accommodate additional utility, cable, and telecommunications facilities if the permit is granted. (5) The damage or disruption, if any, of public or private facilities, improvements, service, travel or landscaping if the permit is granted. (6) The public interest in minimizing the cost and disruption of construction within the public ways. (7) The service that applicant will provide to the community and region. (8) The effect, if any, on public health, safety and welfare if the license is granted. (9) The availability of alternate routes and/or locations for the proposed facilities. (10) Applicable federal and state telecommunications laws, regulations and policies. (11) Such other factors as may demonstrate that the grant to use the public ways will serve the community interest. 59 Current AMC Title 16 with Strikeouts 6/9/10 16.73.040 Agreement. No permit shall be deemed to have been granted hereunder until the applicant and the city have executed a written agreement setting forth the particular terms and provisions under which the permittee has been granted to right to occupy and use public ways of the city. 16.73.050 Nonexclusive grant. No permit granted under this chapter shall confer any exclusive right, privilege, license or franchise to occupy or use the public ways of the city for delivery of telecommunications services or any other purposes. 16.73.060 Rights granted. No permit granted under this chapter shall convey any right, title or interest in the public ways, but shall be deemed a permit only to use and occupy the public ways for the limited purposes and term stated in the permit. Further, no permit shall be construed as any warranty of title. 16.73.070 Terms of telecommunications right-of-way use permit. Unless otherwise specified in a permit, a telecommunications permit granted hereunder shall be in effect for a term of ten years, which shall be revocable upon thirty days' notice by the city to the permittee. 16.73.080 Telecommunications right-of-way permit route. A telecommunications permit granted under this chapter shall be limited to a grant of specific public ways and defined portions thereof. 16.73.090 Service to city users. A permittee shall be permitted to offer or provide telecommunications services to persons or areas within the city upon approval of an application for a telecommunications franchise pursuant to Chapter 16.73. 16.73.100 Compensation to the city. Each permit granted pursuant to this chapter is subject to the city's right, which is expressly reserved, to annually fix a fair and reasonable compensation to be paid for the right to occupy and use the public ways of the city granted under such permits; provided, nothing in this chapter shall prohibit the city and a permittee from agreeing to the compensation to be paid. 16.73.110 Amendment of permit. A new permit application shall be required of any telecommunications carrier that desires to extend or locate its telecommunications facilities in public ways of the city which are not included in a permit previously granted under this chapter. If ordered by the city to locate or relocate its telecommunications facilities in public ways not included in a previously granted license, the city shall grant a permit amendment without further application. 16.73.120 Renewal of telecommunications right-of-way use permit. 60 Current AMC Title 16 with Strikeouts 6/9/10 A permittee that desires to renew its permit under this chapter shall, not more than one hundred eighty days nor less than ninety days before expiration of the current permit, file an application with the city for renewal of its permit which shall include the following: (1) The information required pursuant to Section 16.73.020 of this chapter. (2) Any information required pursuant to the permit agreement between the city and the permittee. (3) All deposits or charges required pursuant to this chapter. (4) An application fee which shall be set by the city council by resolution. 16.73.130 Standards for renewal of permits. Within ninety days after receiving a complete application for permit renewal, the city shall issue a written determination granting or denying the renewal application in whole or in part. Prior to granting or denying the renewal of a permit under this section, the city council shall conduct a public hearing and make a decision based upon the following standards. If the renewal application is denied, the written determination shall include the reasons for nonrenewal. (1) The financial and technical ability of the applicant. (2) The continuing capacity of the public ways to accommodate the applicant's existing facilities. (3) The applicant's compliance with the requirements of this chapter and the permit. (4) Applicable federal, state and local telecommunications laws, rules and policies. (5) Such other factors as may demonstrate that the continued grant to use the public ways will serve the community interest. 16.73.140 Obligation to cure as a condition of renewal. No permit shall be renewed until any ongoing violations or defaults in the permittee's performance of the permit, or of the requirements of this chapter, have been cured, or a plan detailing the corrective action to be taken by the permittee has been approved by the city. 61 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.74 CABLE TELEVISION FRANCHISE Sections: 16.74.010 Cable television franchise. 16.74.020 Franchise application. 16.74.030 Determination by the city. 16.74.040 Agreement. 16.74.050 Nonexclusive grant. 16.74.060 Terms of franchise grant. 16.74.070 Rights granted. 16.74.080 Franchise territory. 16.74.090 Nondiscrimination. 16.74.100 Amendment of franchise grant. 16.74.110 Renewal application. 16.74.120 Renewal determination. 16.74.130 Obligation to cure as a condition of renewal. 16.74.140 Rates. 16.74.150 Periodic meetings. 16.74.160 Cable system evaluation. 16.74.170 Public, educational and governmental access. 16.74.180 City-wide public, educational and government access interconnection. 16.74.190 Institutional networks (I-Nets). 16.74.200 City-wide institutional networks interconnection. 16.74.210 Access and institutional network equipment. 16.74.220 External franchising costs. 16.74.230 Continuity of service. 16.74.240 Equalization of civic contributions. 16.74.250 Subscriber rate complaint process. 16.74.260 Parental control devices. 16.74.270 Customer service. 16.74.280 Telephone response. 16.74.290 Failure to improve customer service. 16.74.300 Reports. 16.74.310 Programming. 16.74.320 Inconsistency. 16.74.010 Cable television franchise. A cable television franchise shall be required of any telecommunications carrier, cable operator, or other person who desires to occupy the public ways of the city and to provide cable service to any person or area in the city. 16.74.020 Franchise application. Any person that desires a cable television franchise pursuant to this chapter shall file an application with the city which, in addition to the materials required by Section 16.72.020, shall include whether the applicant intends to provide telecommunications service, and sufficient 62 Current AMC Title 16 with Strikeouts 6/9/10 information to determine whether such service is subject to telecommunications franchising pursuant to this chapter. 16.74.030 Determination by the city. Within one hundred twenty days after receiving a complete application under Section 16.74.020, the city shall issue a written determination granting or denying the application in whole or in part. Prior to granting or denying a franchise under this chapter, the city council shall conduct a public hearing and make a decision based upon the standards set forth in Section 16.72.030. If the application is denied, the written determination shall include the reason(s) for denial. 16.74.040 Agreement. No franchise shall be deemed to have been granted hereunder until the applicant and the city have executed a written agreement setting forth the particular terms and provisions under which the franchise has been granted to right to occupy and use public ways of the city and to provide cable service to persons or areas within the city. 16.74.050 Nonexclusive grant. No franchise granted under this chapter shall confer any exclusive right, privilege, license or franchise to occupy or use the ways of the city for delivery of cable services or any other purposes. 16.74.060 Terms of franchise grant. Unless otherwise specified in a franchise agreement, a cable franchise granted hereunder shall be valid for a term of ten years. 16.74.070 Rights granted. A cable television franchise granted pursuant to this chapter shall authorize a franchisee: (1) To engage in the business of operating and providing cable service and services and the distribution and sale of such services to subscribers within the city; and (2) To erect, install, construct, repair, replace, reconstruct, maintain and retain in, on, over, under, upon, across and along any public way, such amplifiers and appliances, lines, cables, conductors, vaults, manholes, pedestals, attachments, supporting structures, and other property as may be necessary and appropriate to the cable system. Provided, however, that no privilege or exemption shall be granted or conferred upon a franchisee by any franchise except as specifically prescribed therein, and any use of any public way shall be consistent with any prior lawful occupancy of the public way or any subsequent improvement or installation therein. Provided further, that no franchise granted pursuant to this chapter shall convey any right, title or interest in the public ways, but shall be deemed a franchise only to use and occupy the public ways for the limited purposes and term stated in the grant. No franchise shall be constructed as any warranty of title. 16.74.080 Franchise territory. A cable television franchise granted under this chapter shall be limited to the specific geographic area of the city to be served by the franchisee, and the specific public ways necessary to serve such areas. 63 Current AMC Title 16 with Strikeouts 6/9/10 16.74.090 Nondiscrimination. A franchisee shall make its telecommunications services available to any customer within its franchise area who all request such service, without discrimination as to the terms, conditions, rates or charges for grantee's services; provided, however, that nothing in this chapter shall prohibit a franchisee from making any reasonable classifications among differently situated customers. Provided further, that nothing in this chapter shall be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any customer coming within such classification would be entitled, and that connection and/or service charges may be waived or modified during promotional campaigns of a franchisee. A franchisee will not deny access to cable service to any group or potential residential subscribers because of the income of the residents of the local area in which the group resides. 16.74.100 Amendment of franchise grant. Except as otherwise provided by 47 U.S.C. Section 545, a new franchise application and grant shall be required of any cable operator that desires to extend its franchise territory, to locate its cable facilities in public ways of the city which are not included in a franchise previously granted under this chapter, or to otherwise modify its franchise or franchise agreement. If ordered by the city to locate or relocate its cable facilities in public ways not included in a previously granted franchise, the city shall grant a franchise amendment without further application. 16.74.110 Renewal application. A franchisee that desires to renew its franchise under this chapter shall, not more than one hundred eighty days nor less than one hundred twenty days before expiration of the current franchise, file an application with the city for renewal of its franchise which shall include the following: (1) The information required pursuant to Section 16.72.020. (2) Any information required pursuant to the franchise agreement between the city and the grantee. (3) Any information required pursuant to the Cable Act. (4) All deposits or charges required pursuant to this chapter. (5) An application fee which shall be set by the city council be resolution. 16.74.120 Renewal determination. Within one hundred twenty days after receiving a complete application under Section 16.72.110, the city shall issue a written determination granting or denying the renewal application in whole or in part. Prior to granting or denying renewal of a franchise under this chapter, the city council shall conduct a public hearing and make a decision based upon the standards set forth in the Cable Act, its implementing regulations, and the standards set forth in Section 16.72.120. If the renewal application is denied, the written determination shall include the reason(s) for nonrenewal. 16.74.130 Obligation to cure as a condition of renewal. No franchise shall be renewed until any ongoing violations or defaults in the franchisee's performance of the franchise agreement, or of the requirements of the chapter, have been cured, 64 Current AMC Title 16 with Strikeouts 6/9/10 or a plan detailing the corrective action to be taken by the franchisee has been approved by the city. 16.74.140 Rates. Within thirty days after the grant of franchise pursuant to this chapter, a franchisee shall file with the city a complete schedule of all present rates charged to all subscribers. Prior to implementation of any change in rates or charges for any service or equipment provided by a franchisee, a franchisee shall provide the city and all subscribers a minimum of thirty days prior written notice of such change. Subject to 47 U.S.C. Section 542, a franchisee shall pay the city a franchise fee equal to five percent or greater of its gross revenues as defined in this chapter. The franchise fee shall be paid quarterly, on or before the thirtieth day of January, April, July, and October. Such remittances shall be accompanied by forms furnished by the city to report reasonably detailed information as to the sources of such revenues. 16.74.150 Periodic meetings. Upon request, but not more than once during any calendar year, a franchisee shall meet with designated city officials and/or designated representative(s) of the city to review the performance of a franchisee for the preceding period. The franchisee shall be given not less than thirty days' prior written notice of any such meeting. The subjects may include, but are not limited to, those items covered in the periodic reports and performance tests. 16.74.160 Cable system evaluation. In addition to periodic meetings, and with written notice of not less than five business days so that a franchisee can arrange to have necessary personnel present, the city may require reasonable evaluation sessions at any time during the term of a franchise. It is intended that such evaluations cover areas such as customer service, response to the community's cable-related needs, and a franchisee's performance under and compliance with the terms of a franchise. 16.74.170 Public, educational and governmental access. As permitted by 47 U.S.C. Section 531, the city may require, as a condition of a franchise granted pursuant to this chapter, provisions for public, educational and government (PEG) access. 16.74.180 City-wide public, educational and government access interconnection. As permitted by 47 U.S.C. Section 531, the city may request a franchisee to begin negotiations to interconnect PEG access channels of a cable television system with any and all other contiguous and compatible cable systems. Interconnection of system may be accomplished by direct cable connection, microwave link, or other technically feasible method. Upon receiving request of the city to interconnect, if a franchisee has not already done so, a franchisee shall initiate negotiations with other affected system(s), and shall report to the city the results of such negotiations no later than sixty days after such initiation. Any costs of interconnection may be passed through to subscribers by a franchisee. 16.74.190 Institutional networks (I-Nets). A franchisee's cable system shall have the capability of serving designated educational and public buildings with uni- or bi-directional video/audio signals. The linkage may be by 65 Current AMC Title 16 with Strikeouts 6/9/10 cable, microwave or other means deemed appropriate by a franchisee. If required, suitable encoding and decoding devices shall be made available by a franchisee to assure transmission security. A public entity desiring the activation of such service shall make application thereof to a franchisee. Activation of such services to a public entity shall not be unduly denied. As provided by the Cable Act, a public entity in the city denied such service may request a public hearing to evaluate such denial. Both the requester and the franchisee shall be provided the opportunity to present the reasons for the request and the reasons for the denial. Upon a finding by the city council that these services are reasonably required to meet community needs, taking into account the cost of meeting such needs, the city council may require the activation of such services for the public entity in a reasonable time and on the same basis that other public entities in the city receive the same service. 16.74.200 City-wide institutional networks interconnection. A franchise agreement may require a franchisee to make such interconnections as necessary to connect certain designated institutions on a city-wide basis. The same conditions as enumerated in Section 16.72.030 shall apply to such interconnections. 16.74.210 Access and institutional network equipment. A franchise agreement may require a franchisee to contribute either specified goods and services and/or a specified sum of money for the purpose of providing facilities and equipment for PEG access programming and institutional networks. 16.74.220 External franchising costs. Prior to expenditure of capital for any franchise related requirements that would be treated as an external cost passed through to customers, the franchisee shall notify the city of its intent to exercise its right and the amount to be passed through to customers. The city may waive the franchise related requirement if, in the city's opinion, the increase in rates would be a burden on city rate payers. 16.74.230 Continuity of service. It shall be the right of all subscribers to continue receiving service so long as their financial and other obligations to a franchisee are fulfilled. In this regard a franchisee shall act so far as it is reasonably within its control to provide all subscribers with continuous uninterrupted service during the term of the franchise, subject to applicable law. In the event a franchisee fails to operate a system for seventy-two continuous and consecutive hours without prior notification to and approval of the city council or without just cause such as an impossibility to operate the system because of the occurrence of an act of God or other circumstance reasonably beyond a franchisee's control, the city may, alter notice and an opportunity for a franchisee to commence operations at its option, operate the emergency alert system or designate someone to operate the emergency alert system until such time as a franchisee restores service or a replacement franchisee is selected. If the city is required to fulfill this obligation for a franchisee, a franchisee shall reimburse the city for all reasonable costs or damages that are the result of a franchisee's failure to perform. 16.74.240 Equalization of civic contributions. 66 Current AMC Title 16 with Strikeouts 6/9/10 In the event of one or more new franchises being granted, the city may require that such subsequent franchisees pay to the city an amount proportionally equal to franchising costs contributed by the initial franchisee. These costs may include but are not limited to such features as access and institutional network costs, bi-directional or equivalent cable installed to municipal buildings and similar expenses. Additional franchisees shall provide all PEG access channel(s) currently available to the subscribers of existing franchisees. In order to provide these access channels, additional franchisees shall interconnect, at their cost, with existing franchisees, subject to any reasonable terms and conditions that the existing franchisee providing the interconnection may require. These interconnection agreements shall be made directly between the franchisees. The city council, in such cases of dispute of award, may be called upon to arbitrate regarding these arrangements. Additional franchisees shall contribute towards costs of PEG access paid by a prior franchisee by paying to the prior franchisee on each anniversary of the grant of the subsequent franchise an amount equal to a proportionate share of the amount contributed by the prior franchisee for PEG access costs in constant dollars. This proportionate share shall be based upon the number of subscribers in the city held by each franchise and shall be contributed until such time as equal contributions towards the cost of PEG access have been made. 16.74.250 Subscriber rate complaint process. As provided by 47 U.S.C. Section 543, any subscriber aggrieved by a cable rate increase shall file its cable rate complaint with the city within ninety days of the effective date of such an increase. Such complaints shall be submitted upon a form prescribed by the responsible official. If the city receives cable rate complaints from cable subscribers, it may, in its sole discretion, file a cable rate complaint with the FCC, seeking review of any rate increase. 16.74.260 Parental control devices. A franchisee shall make available at its cost, including applicable handling fees, a device by which the subscriber can prohibit viewing of a particular cable service during periods selected by that subscriber. 16.74.270 Customer service. (a) A franchisee shall render repair service to restore the quality of the signal at approximately the same standards existing prior to the failure or damage of the component causing the failure and make repairs promptly and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during a period of minimum use of the system, A log of all service interruptions shall be maintained for a period of at least one year. The city, after two working days' notice, may inspect such logs. (b) An employee of a franchise shall answer and respond to all individual complaints received up until five p.m. weekdays. A franchise may use an answering service to receive complaints after five p.m. weekdays and on weekends and holidays and shall respond to any system outage affecting more than five subscribers regardless of day and hour. A copy of the instructions to the answering service by a franchisee shall be furnished to the city or its designee. (c) A technician shall be on call seven days a week, twenty-four hours a day. A franchisee shall respond immediately to service complaints in an efficient manner. 67 Current AMC Title 16 with Strikeouts 6/9/10 (d) A franchisee shall maintain a sufficient repair force to respond to individual requests for repair service within two working days after receipt of the complaint or request, except Saturday, Sunday and legal holidays. All complaints shall be resolved within seven days, to extent reasonable. If a subscriber has notified a franchisee of an outage, no charge for the period of the outage shall be made to the subscriber if the subscriber was without service for a period exceeding twenty-four hours. (e) A franchisee shall supply at the time of a new connection, and periodically at least once a year, the title, address and telephone number of the city official or his/her designee, to whom subscribers may direct their concerns. (f) In no case will a franchisee's service standards fall below the standards established below the National Cable Television Association (NCTA), incorporated by this reference as though completely set forth herein. 16.74.280 Telephone response. (a) A franchisee shall maintain an adequate force of customer service representatives as well as incoming trunk lines so that telephone inquiries are met promptly and responsively. A franchisee shall have in place procedures for utilization of other manpower and/or recording devices for handling the flow of telephone calls at peak periods of large outages or other major causes of subscriber concern. A copy of such procedures and/or policies shall be made available to the city. (b) In order that the city may be informed of a franchisee's success in achieving satisfactory customer relations in its telephone answering functions, a franchisee shall, upon request by the city, and routinely each quarter, provide the city with a summary that provides the following: (1) Total number of calls received in recording periods; (2) Time taken to answer; (3) Average talk time; (4) Number of calls abandoned by the caller; (5) Average hold time; (6) Percentage of time all lines busy; (7) An explanation of any abnormalities. (c) This data will be compared to the minimum standards of the NCTA, or any amendment thereto increasing such standards, and shall be monitored by the city. (d) Calls for service generated during periods of system outages due to emergencies affecting more than twenty-five customers may be excluded from the service response calculations. The city shall have the sole determination as to what constitutes a system failure due to emergency and which calls shall be excluded from the service level calculations. 16.74.290 Failure to improve customer service. The city or its designee shall review telephone response and customer service information with a franchisee. Improvements will be made by the franchisee in the appropriate categories which are found deficient from the last reporting period. Failure to do so may result in action being taken pursuant to Section 16.74.130. 16.74.300 Reports. A franchisee shall furnish, upon request, a report of its activities as appropriate. Such report shall include: 68 Current AMC Title 16 with Strikeouts 6/9/10 (1) A copy of the franchisee's most recent annual report; (2) A copy of the franchisee's 10-K report, if required by the Securities and Exchange Commission; (3) The number of homes passed by the franchisee's cable system; and (4) The number of subscribers with basic services; (5) The number of subscribers with premium services; (6) The number of hook-ups in the reporting period; (7) The number of disconnects in the reporting period; (8) The total number of miles of cable under the franchisee's control within the city; (9) A summary of complaints received by category, length of time taken to resolve each complaint, and action taken to provide resolution; (10) A copy of franchisee's current billing practices, and a sample copy of then franchisee's current bill format; (11) A copy of the franchisee's current subscriber service agreement; (12) Any other such reports with respect to the franchisee's local operations, affairs, transactions, or property that the city may deem to be appropriate. 16.74.310 Programming. For informational purposes, a franchisee shall file a listing of its programming and the tiers in which they are placed. A franchisee shall consider the city's suggestions of general programming categories as determined from time to time in residential questionnaire polls. The results of such surveys, when performed, shall be appended to the respective franchise agreements. 16.74.320 Inconsistency. If any portion of this chapter should be inconsistent or conflict with any rule or regulation now or hereafter adopted by the FCC or other federal law, then to the extent of the inconsistency or conflict, the rule or regulation of the FCC or other federal law shall control for so long, but only for so long, as such rule, regulation, or law shall remain in effect; provided the remaining provisions of this chapter shall not be effected thereby. 69 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.75 CONDITIONS OF PERMITS AND FRANCHISES Sections: 16.75.010 Purpose. 16.75.020 Acceptance. 16.75.030 Police power. 16.75.040 Rules and regulations by the city. 16.75.050 Location of facilities. 16.75.060 Compliance with one call locator service. 16.75.070 Construction approval. 16.75.080 Interference with the public ways. 16.75.090 Damage to property. 16.75.100 Notice of work. 16.75.110 Repair and emergency work. 16.75.120 Maintenance of facilities. 16.75.130 Relocation or removal of facilities. 16.75.140 Building moving. 16.75.150 Removal of unauthorized facilities. 16.75.160 Emergency removal or relocation of facilities. 16.75.170 Damage to facilities. 16.75.180 Restoration of public ways, other ways and city property. 16.75.190 Facilities maps. 16.75.200 Duty to provide information. 16.75.210 Leased capacity. 16.75.220 Insurance. 16.75.230 General indemnification. 16.75.240 Performance and construction surety. 16.75.250 Security fund. 16.75.260 Restoration bond. 16.75.270 Construction and completion. 16.75.280 Coordination of construction activities. 16.75.290 Assignments or transfers of grant. 16.75.300 Transactions affecting control of grant. 16.75.310 Revocation or termination of grant. 16.75.320 Notice and duty to cure. 16.75.330 Hearing. 16.75.340 Standards for revocation or lesser sanctions. 16.75.350 Incorporation by reference. 16.75.360 Notice of entry on private property. 16.75.370 Safety requirements. 16.75.010 Purpose. The purpose of this chapter is to set forth certain terms and conditions which are common to all telecommunications right-of-way use permits, telecommunications franchises, and cable television franchises. Except as otherwise provided in this chapter or in such a permit or 70 Current AMC Title 16 with Strikeouts 6/9/10 franchise, the provisions of this chapter apply to all such permits and franchises approved or granted by the city council. 16.75.020 Acceptance. No permit or franchise granted pursuant to the provisions of this chapter shall become effective unless and until the ordinance granting the same has become effective. Within thirty days after the effective date of the ordinance granting a permit or awarding a franchise, or within such extended period of time as the city council in its discretion may authorize, a franchisee shall file with the responsible official its written acceptance of the permit or franchise, in a form satisfactory to the city attorney, together with the bonds, insurance policies, and security fund required by this chapter. 16.75.030 Police power. In accepting any permit or franchise, the permittee or franchisee acknowledges that its rights hereunder are subject to the legitimate rights of the police power of the city to adopt and enforce general ordinances necessary to protect the safety and welfare of the public and it agrees to comply with all applicable general laws enacted by the city pursuant to such power. 16.75.040 Rules and regulations by the city. In addition to the inherent powers of the city to regulate and control any permit or franchise it issues, the authority granted to it by the Cable Act and the Telecommunications Act of 1996, and those powers expressly reserved by the city, or agreed to and provided for in any permit or franchise, the right and power is hereby reserved by the city to promulgate such additional regulations as it may find necessary in the exercise of its lawful powers giving due regard to the rights of permittee and franchisees. Except as provided in this chapter, the foregoing does not allow for amendment by the city of material terms of any permit or franchise it issues without the consent of the permittee or franchisee. The city council reserves the right to delegate its authority for permit and franchise administration to a designated agent. 16.75.050 Location of facilities. All facilities shall be constructed, installed and located in accordance with the following terms and conditions, unless otherwise specified in a permit or franchise agreement. (1) A permittee or franchisee grantee shall install its cable or telecommunications facilities within an existing underground duct or conduit whenever excess capacity exists within such utility facility. (2) A permittee or franchisee with permission to install overhead facilities shall install its cable or telecommunications facilities on pole attachments to existing utility poles only, and then only if surplus space is available. (3) Whenever any new or existing electric utilities, cable facilities or telecommunications facilities are located underground within a public way of the city, a permittee or franchisee with permission to occupy the same public way must also locate its cable or telecommunications facilities underground. (4) Whenever any new or existing electric utilities, cable facilities or telecommunications facilities are located or relocated underground within a public way of the city, a permittee or franchisee that currently occupies the same public way shall relocate its facilities underground. Absent extraordinary circumstances or undue hardship as determined by the city public works 71 Current AMC Title 16 with Strikeouts 6/9/10 director, such relocation shall be made concurrently to minimize the disruption of the public ways. The location or relocation of the facilities shall be done in accordance with the department of public works standard cross-section and other standards. No extension granted by the director of public works under this subsection shall exceed a period of twelve months. (5) Whenever new cable or telecommunications facilities will exhaust the capacity of a public street or utility easement to reasonably accommodate future cable or telecommunications carriers or facilities, the permittee or franchisee and all other occupants of the public way shall provide additional ducts, conduits, manholes and other facilities for nondiscriminatory access to future operators and carriers. 16.75.060 Compliance with one call locator service. All permittees and franchisees shall, before commencing any construction in the public ways, comply with all regulations of Chapter 19.122 RCW, the one call locator service. 16.75.070 Construction approval. All permittees and franchisees are required to obtain construction approval for cable and telecommunications facilities as required in Chapter 16.76. However, nothing in this chapter shall prohibit the city and a permittee or franchisee from agreeing to alternative plan review, permit, and construction procedures for a permit or franchise agreement, provided such alternative procedures provide substantially equivalent safeguards for responsible construction practices. 16.75.080 Interference with the public ways. No permittee or franchisee may locate or maintain its cable or telecommunications facilities so as to unreasonably interfere with the use of the public ways by the city, by the general public or by other persons authorized to use or be present in or upon the public ways. All such facilities shall be moved by the permittee or franchisee, at the permittee or franchisee's cost, temporarily or permanently, as determined by the city public works director. 16.75.090 Damage to property. No permittee or franchise nor any person acting on a permittee or franchisee's behalf shall take any action or permit any action to be done which may impair or damage any city property, public ways of the city, other ways or other property, whether publicly or privately owned, located in, on or adjacent thereto. 16.75.100 Notice of work. Unless otherwise provided in a permit or franchise agreement, no permittee or franchisee, not any person acting on the permittee's or franchisee's behalf, shall commence any nonemergency work in or about the public ways of the city or other ways without ten working days' advance notice to the city. 16.75.110 Repair and emergency work. In the event of an unexpected repair or emergency, a permittee or franchise may commence such repair and emergency response work as required under the circumstances, provided the permittee or franchisee shall notify the city as promptly as possible, before such 72 Current AMC Title 16 with Strikeouts 6/9/10 repair or emergency work commences or as soon thereafter as possible if advance notice is not practicable. 16.75.120 Maintenance of facilities. Each permittee or franchisee shall maintain its facilities in good and safe condition and in a manner that complies with all applicable federal, state and local requirements. 16.75.130 Relocation or removal of facilities. Within thirty days following written notice from the city, a permittee or franchisee shall, at its own expense, temporarily or permanently remove, relocate, change or alter the position of any cable or telecommunications facilities within the public ways whenever the city public works director shall have determined that such removal, relocation, change or alteration is reasonably necessary for: (1) The construction, repair, maintenance or installation of any city or other public improvement in or upon the public ways; or (2) The operations of the city or other governmental entity in or upon the public ways. 16.75.140 Building moving. Whenever any person shall have obtained permission from the city to use any street or public way for the purpose of moving any building, a permittee or franchisee, upon any street or public way for the purpose of moving any building, a permittee or franchisee, upon seven days' written notice from the city, shall raise or remove, at the expense of the person desiring to move the building, any of the permittee or franchisee's facilities which may obstruct the removal of such building; provided that the person desiring to move the building shall comply with all requirements of the city for the movement of buildings. 16.75.150 Removal of unauthorized facilities. Within thirty days following written notice from the city, any permittee, telecommunications carrier, or other person that owns, controls or maintains any unauthorized cable or telecommunications system, facility or related appurtenances within the public ways of the city shall, at its own expense, remove such facilities or appurtenances from the public ways of the city. A cable or telecommunications system or facility is unauthorized and subject to removal in the following circumstances: (1) Upon expiration or termination of the permittee or franchisee's permit or franchise; (2) Upon abandonment of a facility within the public ways of the city. Any property of a permittee or franchisee shall be deemed abandoned if left in place ninety days after expiration or termination of a permit or franchise; (3) If the system or facility was constructed or installed without the prior grant of a permit or franchise; (4) If the system or facility was constructed or installed without the prior issuance of a required construction permit; (5) If the system or facility was constructed or installed at a location not permitted by the permittee or franchisee's permit or franchise; provided, however, that the city may, in its sole discretion, allow a permittee, franchisee, or other such persons who may own, control, or maintain cable or telecommunications facilities within the public ways of the city to abandon such facilities in place. No facilities of any type may be 73 Current AMC Title 16 with Strikeouts 6/9/10 abandoned in place without the express written consent of the city. Any plan for abandonment or removal of a permittee or franchisee's facilities must be first approved by the public works director, and all necessary permits must be obtained prior to such work. Upon permanent abandonment of the property, the property shall become that of the city, and such persons shall submit to the responsible official an instrument in writing, to be approved by the city attorney, transferring to the city the ownership of such property. The provisions of this section shall survive the expiration, revocation, or termination of a permit or franchise granted under this chapter. 16.75.160 Emergency removal or relocation of facilities. The city retains the right and privilege to cut or move any cable telecommunications facilities located within the public ways of the city, as the city may determine to be necessary, appropriate or useful in response to any public health or safety emergency. The city shall not be liable to any cable operator, telecommunications carrier, or any other party for any direct, indirect, or any other such damages suffered by any person or entity of any type as a direct or indirect result of the city's actions under Section 16.75.150. 16.75.170 Damage to facilities. Unless directly and proximately caused by the wilful, intentional or malicious acts by the city, the city shall not be liable for any damage to or loss of any cable or telecommunications facility upon city property or within the public ways of the city as a result of or in connection with any public works, public improvements, construction, excavation, grading, filling, or work of any kind on such city property or within the public ways by or on behalf of the city. 16.75.180 Restoration of public ways, other ways and city property. (a) When a permittee or franchisee, or any person acting on its behalf, does any work in or affecting any public ways, other ways or city property, it shall, at its own expense, promptly remove any obstructions therefrom and restore such ways or property to as good a condition as existed before the work was undertaken, unless otherwise directed by the city. (b) If weather or other conditions do not permit the complete restoration required by this section, the permittee or franchisee shall temporarily restore the affected ways or property. Such temporary restoration shall be at the permittee or franchisee's sole expense and the permittee or franchisee shall promptly undertake and complete the required permanent restoration when the weather or other conditions no longer prevent such permanent restoration. (c) A permittee, franchisee or other person acting in its behalf shall use suitable barricades, flags, flagmen, lights, flares and other measures as required for the safety of all members of the general public and to prevent injury or damage to any person, vehicle or property by reason of such work in or affecting such ways or property. 16.75.190 Facilities maps. Each permittee or franchisee shall provide the city with an accurate map or maps certifying the location of all telecommunications facilities within the public ways. Each permittee or franchisee shall provide the city with updated maps annually. 16.75.200 Duty to provide information. 74 Current AMC Title 16 with Strikeouts 6/9/10 Within ten days of a written request from the city supervisor, each permittee or franchisee shall furnish the city with information sufficient to demonstrate: (1) That permittee or franchisee has complied with all requirements of this chapter. (2) That all sales, utility and/or telecommunications taxes due the city in connection with the cable or telecommunications services and facilities provided by the permittee have been properly collected and paid by the permittee or franchisee. All books, records, maps and other documents, maintained by the permittee or franchisee with respect to its facilities within the public ways shall be made available for inspection by the city at reasonable times and intervals. Provided, however, that nothing in this section shall be construed to require a permittee or franchisee to violate state or federal law regarding subscriber privacy, nor shall this section be construed to require a permittee or franchisee to disclose proprietary or confidential information without adequate safeguards for its confidential or proprietary nature. 16.75.210 Leased capacity. A permittee or franchisee shall have the right, without prior city approval, to offer or provide capacity or bandwidth to its customers consistent with such permit or franchisee; provided: (1) The permittee or franchisee shall furnish the city with a copy of any such lease or agreement between the permittee or franchisee and the customer or lessee; and (2) The customer or lessee complied, to the extent applicable, with the requirements of this chapter. 16.75.220 Insurance. Unless otherwise provided in a permit or franchise agreement, each permittee or franchisee shall, as a condition of the permit or grant, secure and maintain the following liability insurance policies insuring both the permittee or franchisee and the city, and its elected and appointed officers, officials, agents and employees as co-insureds: (1) Comprehensive general liability insurance with limits not less than (A) Five million dollars for bodily injury or death to each person; (B) Five million dollars for property damage resulting from any one accident; and (C) Five million dollars for all other types of liability. (2) Automobile liability for owned, non-owned and hired vehicles with a limit of three million dollars for each person and three million dollars for each accident. (3) Worker's compensation within statutory limits and employer's liability insurance with limits of not less than one million dollars. (4) Comprehensive form premises-operations, explosions and collapse hazard, underground hazard and products completed hazard with limits of not less than three million dollars. (5) The liability insurance policies required by this section shall be maintained by the permittee or franchisee throughout the term of the permit or franchise, and such other period of time during which the permittee or franchisee is operating without a franchise or permit hereunder, or engaged in the removal of its telecommunications facilities. Each such insurance policy shall contain the following endorsement: It is hereby understood and agreed that this policy may not be canceled nor the intention not to renew be stated until 90 days after receipt by the City, by registered mail, of a written notice addressed to the City Manager of such intent to cancel or not to renew. 75 Current AMC Title 16 with Strikeouts 6/9/10 (6) Within sixty days after receipt by the city of said notice, and in no event later than thirty days prior to said cancellation or intent not to renew, the permittee or franchisee shall obtain and furnish to the city replacement insurance policies meeting the requirements of this section. 16.75.230 General indemnification. No permit or franchise shall be deemed to be granted under this chapter unless it includes an indemnity clause substantially conforming to the following: The permittee or franchisee hereby releases, covenants not to bring suit and agrees to indemnify, defend and hold harmless the City, its officers, employees, agents and representatives from any and all claims by the permittee or franchisee's own employees to which the permittee or franchise might otherwise be immune under Title 51 RCW, arising from injury or death of any person or damage to property of which the negligent acts or omissions of the permittee or franchisee, its agents, servants, officers or employees in performing under this permit or franchisee are the proximate cause. The permittee or franchisee further releases, covenants not to bring suit and agrees to indemnify, defend and hold harmless the City, its officers and employees from any and all claims, costs, judgments, awards or liability to any person including claims by the permittee or franchisee's own employees, including those claims to which the permittee or franchisee might otherwise have immunity under Title 51 RCW, arising against the City solely by virtue of the City's ownership or control of the rights-of-way or other public properties, by virtue of the permittee or franchisee's exercise of the rights granted herein, or by virtue of the City's permitting the permittee or franchisee's use of the City's rights-of-way or other public property, based upon the City's inspection or lack of inspection of work performed by the permittee or franchisee, its agents and servants, officers or employees in connection with work authorized on the City's property or property over which the City has control, pursuant to this permit or franchise or pursuant to any other permit or approval issued in connection with this permit or franchise. This covenant of indemnification shall include, but not be limited by this reference, claims against the City arising as a result of the negligent acts or omissions of the permittee or franchisee, its agents, servants, officers or employees in barricading, instituting trench safety systems or providing other adequate warnings of any excavation, construction, or work in any public right-of-way or other public place in performance of work or services permitted under this permit or franchise. Inspection or acceptance by the City of any work performed by the permittee or franchisee at the time of completion of construction shall not be grounds for avoidance of any of these covenants of indemnification. Said indemnification obligations shall extend to claims which are not reduced to a suit and any claims which may be compromised prior to the culmination of any litigation or the institution of any litigation. In the event that the permittee or franchisee refuses the tender of defense in any suit or any claim, said tender having been made pursuant to the indemnification clauses contained herein, and said refusal is subsequently determined by a court having jurisdiction (or such other tribunal that the parties shall agree to decide the matter), to have been a wrongful refusal on the part of the permittee or franchisee, then the permittee or franchisee shall pay all of the City's costs for defense of the action, including all reasonable expert witness fees and reasonable attorneys' fees and the reasonable costs of the City, including reasonable attorneys' fees of recovering under this indemnification clause. In the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the permittee or franchisee and 76 Current AMC Title 16 with Strikeouts 6/9/10 the City, its officers, employees and agents, the permittee or franchisee's liability hereunder shall be only to the extent of the permittee or franchisee's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the permittee or franchisee's waiver of immunity under Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this Section shall survive the expiration or termination of this franchise agreement. Notwithstanding any other provisions of this Section, the permittee or franchisee assumes the risk of damage to its facilities located in the City's public ways, rights-of-way, and easements from activities conducted by the City, its officers, agents, employees and contractors. The permittee or franchisee releases and waives any and all claims against the City, its officers, agents, employees or contractors for damage to or destruction of the permittee or franchisee's facilities caused by or arising out of activities conducted by the City, its officer's, agents, employees and contractors, in the public ways, rights-of-way, and easements subject to this permit or franchise, except to the extent any such damage or destruction is caused by or arises from the sole negligence or any willful or malicious action on the part of the City, its officers, agents, employees or contractors. The permittee or franchisee further agrees to indemnify, hold harmless and defend the City against any claims for damages, including, but not limited to, business interruption damages and lost profits, brought by or under users of the permittee or franchisee's facilities as the result of any interruption of service due to damage ore destruction of the User's facilities caused by or arising out of activities conducted by the City, its officers, agents, employees or contractors, except to the extent any such damage or destruction is caused by or arises from the sole negligence or any willful or malicious actions on the part of the City, its officers, agents, employees or contractors. 16.75.240 Performance and construction surety. Before a permit or franchise granted pursuant to this chapter is effective, and as necessary thereafter, the permittee or franchisee shall provide and deposit such moneys, bonds, letters of credit or other instruments in form and substance acceptable to the city as may be required by this chapter or by an applicable permit or franchise agreement. 16.75.250 Security fund. Each permittee or franchisee shall establish a permanent security fund with the city by depositing the amount of fifty thousand dollars with the city in cash, an unconditional letter of credit, or other instrument acceptable to the city, which fund shall be maintained at the sole expense of the permittee or franchisee so long as any of the permittee or franchisee's cable or telecommunications facilities are located within the public ways of the city. (1) The fund shall serve as security for the full and complete performance of this chapter, including any costs, expenses, damages or loss the city pays or incurs, including civil penalties, because of any failure attributable to the permittee or franchisee to comply with the codes, ordinances, rules, regulations or permits of the city. (2) Before any sums are withdrawn from the security fund, the city shall give written notice to the permittee or franchisee: (A) Describing the act, default or failure to be remedied, or the damages, cost or expenses which the city has incurred by reason of permittee or franchisee's act or default; 77 Current AMC Title 16 with Strikeouts 6/9/10 (B) Providing a reasonable opportunity for permittee or franchisee to first remedy the existing or ongoing default or failure, if applicable; (C) Providing a reasonable opportunity for permittee or franchisee to pay any moneys due the city before the city withdraws the amount thereof from the security fund, if applicable; (D) That the permittee or franchisee will be given an opportunity to review the act, default or failure described in the notice with the responsible official or his or her designee. (3) Grantees shall replenish the security fund within fourteen days after written notice from the City that there is a deficiency in the amount of the fund. 16.75.260 Restoration bond. Unless otherwise provided in an authorization, franchise, or lease agreement, a performance bond written by a corporate surety acceptable to the city equal to at least one hundred fifteen percent of the estimated cost of removing the grantee, franchisee, or lessee's telecommunications equipment and facilities and restoring the public ways of the city and/or city-owned property to its pre-construction condition shall be deposited before any construction is commenced. Said bond shall be required to remain in full force until sixty days after completion of construction and/or improvements within the public ways of the city or upon city- owned property, and shall warrant all such restoration work for a period of one year. The purpose of this bond is to guarantee removal of partially completed and/or nonconforming telecommunications facilities and to fully restore the public ways of the city and city-owned property to its preconstruction condition. 16.75.270 Construction and completion. Unless otherwise provided in a permit or franchise agreement, a performance bond written by a corporate surety acceptable to the city equal to at least one hundred percent of the estimated cost of constructing the permittee or franchisee's cable or telecommunications facilities within the public ways of the city shall be deposited before construction is commenced. (1) The construction bond shall remain in force until sixty days after substantial completion of the work, as determined by the city public works director, including restoration of public ways and other property affected by construction. (2) The construction bond shall guarantee, to the satisfaction of the city: (A) Timely completion of construction; (B) Construction in compliance with applicable plans, permits, technical codes and standards; (C) Proper location of the facilities as specified by the city; (D) Restoration of the public ways and other property affected by the construction; (E) The submission of as-built drawings after completion of the work as required by this chapter. (F) Timely payment and satisfaction of all claims, demands or liens for labor, material or services provided in connection with the work. 16.75.280 Coordination of construction activities. Notwithstanding Section 16.75.270, all permittees and franchisees are required to cooperate with the city and with each other. (1) By February 1st of each year, permittees and franchisees shall provide the city with a schedule of their proposed construction activities in, around, or that may affect the public ways. 78 Current AMC Title 16 with Strikeouts 6/9/10 (2) Each permittee and franchisee shall meet with the city, other permittees and franchisees and users of the public ways annually or as determined by the city to schedule and coordinate construction in the public ways. (3) All construction locations, activities and schedules shall be coordinated, as ordered by the city public works director, to minimize public inconvenience, disruption or damages. 16.75.290 Assignments or transfers of grant. Ownership or control of a cable or telecommunications system, license, permit, or franchise may not, directly or indirectly, be transferred, assigned or disposed of by sale, lease, merger, consolidation or other act of the grantee, by operation of law or otherwise, without the prior written consent of the city, which consent shall not be unreasonably withheld or delayed, except as expressed by ordinance and then only on such reasonable conditions as may be prescribed therein. (1) No permit, franchise, or other grant shall be assigned or transferred in any manner within twelve months after the initial grant of the permit or franchise, unless otherwise provided in the permit or franchise agreement. (2) Absent extraordinary and unforeseeable circumstances, no grant, system or integral part of a system shall be assigned or transferred before construction of the telecommunications system has been completed. (3) The permittee or franchisee and the proposed assignee or transferee of the grant or system shall provide and certify the following information to the city not less than one hundred fifty days prior to the proposed date of transfer: (A) Complete information setting forth the nature, terms and condition of the proposed transfer or assignment; (B) All information required of a permit or franchise applicant pursuant to Chapters 16.72, 16.73 and 16.74 with respect to the proposed transferee or assignee; (C) Any other information reasonably required by the city; (D) An application fee which shall be set by the city council by resolution. (4) No transfer shall be approved unless the assignee or transferee has the legal, technical, financial and other requisite qualifications to own, hold and operate the cable or telecommunications system pursuant to this chapter. (5) Unless otherwise provided in a license or franchise agreement, the permittee or franchisee shall reimburse the city for all direct and indirect costs and expenses reasonably incurred by the city in considering a request to transfer or assign a permit or franchise. No approval shall be deemed approved until all such costs and expenses have been paid. (6) Any transfer or assignment of a permit, franchise, system or integral part of a system without prior written approval of the city under this section or pursuant to a permit or franchise agreement shall be void and is cause for revocation of the grant. 16.75.300 Transactions affecting control of grant. Any transactions which singularly or collectively result in a change of fifty percent or more of the ownership or working control of the permittee or franchisee, of the ownership or working control of a cable or telecommunications system, of the ownership or working control of affiliated entities having ownership or working control of the permittee or franchisee or of a telecommunications system, or of control of the capacity or bandwidth of the permittee or franchisee's cable or telecommunication system facilities or substantial parts thereof, shall be 79 Current AMC Title 16 with Strikeouts 6/9/10 considered an assignment or transfer requiring city approval pursuant to Section 16.75.290. Transactions between affiliated entities are not exempt from city approval. A franchisee shall promptly notify the city prior any proposed change in, or transfer, or acquisition by any other party of control of a franchisee's company. Every change, transfer, or acquisition of control of a franchisee's company shall cause a review of the proposed transfer. In the event that the city adopts a resolution denying its consent and such change, transfer or acquisition of control has been effected, the city may cancel the franchise. Approval shall not be required for mortgaging purposes or if said transfer is from a franchisee to another person or entity controlling, controlled by, or under common control with a franchisee. 16.75.310 Revocation or termination of grant. A permit or franchise granted by the city to use or occupy public ways of the city may be revoked for the following reasons: (1) Construction or operation in the city or in the public ways of the city without a permit or franchise grant authorization. (2) Construction or operation at an unauthorized location. (3) Unauthorized substantial transfer of control of permittee or franchisee. (4) Unauthorized assignment of a permit or franchise. (5) Unauthorized sale, assignment or transfer of a permittee or franchisee's franchise, permit, assets, or a substantial interest therein. (6) Misrepresentation or lack of candor by or on behalf of a permittee or franchisee in any application or written or oral statement upon which the city relies in making the decision to grant, review or amend any permit or franchise pursuant to this chapter. (7) Abandonment of cable or telecommunications facilities in the public ways. (8) Failure to relocate or remove facilities as required in this chapter. (9) Failure to pay taxes, compensation, fees or costs when and as due the city. (10) Insolvency or bankruptcy of the permittee or franchisee. (11) Violation of any material provision of this chapter. (12) Violation of the material terms of a permit or franchise agreement. 16.75.320 Notice and duty to cure. In the event that the responsible official believes that grounds exist for revocation of a permit or franchise, he or she shall give the permittee or franchisee written notice of the apparent violation or noncompliance, providing a short and concise statement of the nature and general facts of the violation or noncompliance, and providing the permittee or franchisee a reasonable period of time not exceeding thirty days to furnish evidence: (1) That corrective action has been, or is being actively and expeditiously pursued, to remedy the violation or noncompliance. (2) That rebuts the alleged violation or noncompliance. (3) That is or would be in the public interest to impose some penalty or sanction less than revocation. 16.75.330 Hearing. In the event that a permittee or franchisee fails to provide evidence reasonably satisfactory to the responsible official as provided in Section 16.75.310, the responsible official shall refer the apparent violation or noncompliance to the city council. The city council shall 80 Current AMC Title 16 with Strikeouts 6/9/10 provide the permittee or franchisee with notice and a reasonable opportunity to be heard concerning the matter. 16.75.340 Standards for revocation or lesser sanctions. If the city council determines that a permittee or franchise wilfully violated or failed to comply with any the provisions of this chapter or a permit or franchise granted under this chapter, or through wilful misconduct or gross negligence failed to heed or comply with any notice given the permittee or franchisee by the city under the provisions of this chapter, then the permittee or franchisee shall, at the election of the city council, forfeit all rights conferred hereunder and the permit or franchise may be revoked or annulled by the city council. The city council may elect, in lieu of the above and without any prejudice to any of its other legal rights and remedies, to pursue other remedies, including obtaining an order from the superior court having jurisdiction compelling the permittee or franchisee to comply with the provisions of this chapter and any permit or franchise granted hereunder, and to recover damages and costs incurred by the city by reason of the permittee or franchisee's failure to comply. The city council shall utilize the following factors in analyzing the nature, circumstances, extent and gravity of the violation and in making its determination under this section: (1) Whether the misconduct was egregious. (2) Whether substantial harm resulted. (3) Whether the violation was intentional. (4) Whether there is a history of prior violations of the same or other requirements. (5) Whether there is a history of overall compliance. (6) Whether the violation was voluntarily disclosed, admitted or cured. 16.75.350 Incorporation by reference. The provisions of this chapter shall be incorporated by reference in any permit or franchise approved hereunder. The provisions of any proposal submitted and accepted by the city shall be incorporated by reference in the applicable permit or franchise, however, in the event of any conflict between the proposal, this chapter, and the permit or franchise, the permit or franchise shall be the prevailing document. 16.75.360 Notice of entry on private property. At least twenty-four hours prior to entering private property or streets or public easements adjacent to or on such private property to perform new construction or reconstruction, a notice indicating the nature and location of the work to be performed shall be physically posted upon the affected property by the permittee or franchisee. A door hanger may be used to comply with the notice and posting requirements of this section. A franchisee shall make a good faith effort to comply with the property owner/resident's preferences, if any, on location or placement of underground installations (excluding aerial cable lines utilizing existing poles and existing cable paths), consistent with sound engineering practices. 16.75.370 Safety requirements. A permittee or franchisee, in accordance with applicable national, state and local safety requirements shall, at all times, employ ordinary care and shall install and maintain and use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injury, or nuisance to the public. All structures and all lines, equipment and 81 Current AMC Title 16 with Strikeouts 6/9/10 connections in, over, under, and upon the streets, sidewalks, alleys, and public ways or places of a permit or franchise area, wherever situated or located, shall at all times be kept and maintained in a safe, suitable condition, and in good order and repair. The city reserves the general right to see that the system of a permittee or franchisee is constructed and maintained in a safe condition. If a violation of the National Electrical Safety Code or other applicable regulation is found to exist by the city, the city will, after discussions with a permittee or franchisee, establish a reasonable time for a franchisee to make necessary repairs. If the repairs are not made within the established time frame, the city may make the repairs itself or have them made and collect all reasonable costs thereof from a permittee or franchisee. 82 Current AMC Title 16 with Strikeouts 6/9/10 Chapter 16.76 CONSTRUCTION STANDARDS FOR CABLE AND TELECOMMUNICATIONS FACILITIES Sections: 16.76.010 General construction standards. 16.76.020 Construction codes. 16.76.030 Construction approval. 16.76.040 Construction approval. 16.76.050 Engineer's certification. 16.76.060 Traffic control plan. 16.76.070 Issuance of approval. 16.76.080 Construction schedule. 16.76.090 Compliance. 16.76.100 Display of approval. 16.76.110 Survey of underground facilities. 16.76.120 Noncomplying work. 16.76.130 Completion of construction. 16.76.140 As-built drawings. 16.76.150 Restoration of improvements. 16.76.160 Landscape restoration. 16.76.170 Construction surety. 16.76.180 Exceptions. 16.76.190 Responsibilities of the owner. 16.76.010 General construction standards. No person shall commence or continue with the construction, installation or operation of cable or telecommunications facilities within the city except as provided in this chapter. 16.76.020 Construction codes. Cable and telecommunications facilities shall be constructed, installed, operated and maintained in accordance with all applicable federal, state and local codes, rules and regulations. 16.76.030 Construction approval. No person shall construct or install any cable or telecommunications facilities within the city without first obtaining a construction approval therefore, provided, however: (1) No approval shall be given for the construction or installation of cable or telecommunications facilities within the city unless the cable operator or telecommunications carrier has filed an application for a master land use permit with the city pursuant to Chapter 16.71. (2) No approval shall be issued for the construction or installation of telecommunications facilities in the public ways unless the cable operator or telecommunications carrier has applied for and received a permit or franchise pursuant to this chapter. (3) No approval shall be issued for the construction or installation of cable or telecommunications facilities without payment of the construction permit fee established by a resolution adopted by the city council for this purpose. 83 Current AMC Title 16 with Strikeouts 6/9/10 16.76.040 Construction approval. Approval to construct cable or telecommunications facilities shall require information and drawings in sufficient detail to demonstrate; (1) That the facilities will be constructed in accordance with all applicable codes, rules and regulations. (2) The locations and route of all facilities to be installed on existing utility poles. (3) The location and route of all facilities to be located under the surface of the ground, including the line and grade proposed for the burial at all points along the route which are within the public ways. (4) The location of all existing underground utilities, conduits, ducts, pipes, mains and installations which are within the public ways along the underground route proposed by the applicant. (5) The location of all other facilities to be constructed within the city, but not within the public ways. (6) The construction methods to be employed for protection of existing structures, fixtures, and facilities within or adjacent to the public ways. (7) The location, dimension and types of all trees within or adjacent to the public ways along the route proposed by the applicant, together with a landscape plan for protecting, trimming, removing, replacing and restoring any trees or areas to be disturbed during construction. 16.76.050 Engineer's certification. All information and drawings shall be accompanied by the certification of a registered professional engineer that the drawings, plans and specifications submitted with the application comply with applicable technical codes, rules and regulations. 16.76.060 Traffic control plan. All proposals to work on, in, under, across or along any public ways shall be accompanied by a traffic control plan demonstrating the protective measures and devices that will be employed, consistent with Uniform Manual of Traffic Control Devices, to prevent injury or damage to persons or property and to minimize disruptions to efficient pedestrian and vehicular traffic. 16.76.070 Issuance of approval. Within forty-five days after submission of all plans and documents required of the applicant and payment of the permit fees required by this chapter, the city's public works director, if satisfied that the applications, plans and documents comply with all requirements of this chapter, shall approve construction drawings and information authorizing construction of the facilities, subject to such further conditions, restrictions or regulations affecting the time, place and manner of performing the work as he may deem necessary or appropriate. 16.76.080 Construction schedule. The permittee shall submit a written construction schedule to the city public works director ten working days before commencing any work in or about the public ways. The applicant shall further notify the city public works director not less than two working days in advance of any excavation or work in the public ways. 84 Current AMC Title 16 with Strikeouts 6/9/10 16.76.090 Compliance. All construction practices and activities shall be in accordance with the approved final plans and specifications for the facilities. The city public works director and his or her representatives shall be provided access to the work and such further information as he or she may require to ensure compliance with such requirements. 16.76.100 Display of approval. The permittee shall maintain a copy of the construction approval and approved plans at the construction site, which shall be displayed and made available for inspection by the city public works director or his or her representatives at all times when construction work is occurring. 16.76.110 Survey of underground facilities. If the construction permit specifies the location of facilities by depth, line, grade, proximity to other facilities or other standard, the permittee shall cause the location of such facilities to be verified by a state-registered land surveyor. The permittee shall relocate any faculties which are not located in compliance with permit requirements. 16.76.120 Noncomplying work. Upon order of the city public works director, all work which does not comply with the approval, the approved plans and specifications for the work, or the requirements of this chapter, shall be removed. 16.76.130 Completion of construction. The permittee shall promptly complete all construction activities so as to minimize disruption of the public and other ways and other public and private property. All construction work authorized by a permit within public and other ways, including restoration, must be completed within one hundred twenty days of the date of issuance. 16.76.140 As-built drawings. Within sixty days after completion of construction, the permittee shall furnish the city with two complete sets of plans, drawn to scale and certified to the city as accurately depicting the location of all cable or telecommunications facilities constructed pursuant to the permit. 16.76.150 Restoration of improvements. Upon completion of any construction work, the permittee shall promptly repair any and all public and private property improvements, fixtures, structures and facilities in the public or other ways or otherwise damaged during the course of construction, restoring the same as nearly as practicable to its condition before the start of construction. 16.76.160 Landscape restoration. (a) All trees, landscaping and grounds removed, damaged or disturbed as a result of the construction, installation, maintenance, repair or replacement of cable or telecommunications facilities, whether such work is done pursuant to a franchise or permit shall be replaced or restored as nearly as may be practicable, to the condition existing prior to performance of work. 85 Current AMC Title 16 with Strikeouts 6/9/10 This work shall be done in accordance with the city Unified Development Code where applicable. (b) All restoration work within the public ways shall be done in accordance with landscape plans approved by the responsible official. 16.76.170 Construction surety. Prior to issuance of a construction permit, the permittee shall provide a performance bond, as provided in Section 16.75.260. 16.76.180 Exceptions. Unless otherwise provided in a permit or franchise agreement, all cable operations and telecommunications carriers are subject to the requirements of this chapter. 16.76.190 Responsibilities of the owner. The owner of the facilities to be constructed and, if different, the permittee or franchisee, are responsible for performance of and compliance with all provisions of this chapter. City of Arlington Council Agenda Bill AGENDA ITEM: WORKSHOP ITEM #7 ATTACHMENT F COUNCIL MEETING DATE: June 14, 2010 SUBJECT: Proposed dog licensing fees DEPARTMENT OF ORIGIN: Executive Contact: Kristin Banfield, 360-403-3444 ATTACHMENTS: Proposed Dog Licensing Fees Memo EXPENDITURES REQUESTED: N/A BUDGET CATEGORY: N/A LEGAL REVIEW: DESCRIPTION: As part of the adoption of the City’s fee schedule, completed at the March 1, 2010 Council meeting, City Council had significant discussion about dog licensing fees. Dog licensing fees were removed from the fee resolution and reviewed with the Council on March 8. Council requested additional information at the May 24th Council Workshop. Council is requested to review the proposed licensing fees again in light of the additional information provided. Staff is recommending that the City Council adopt the proposed dog licensing fees included in the staff memo of 6/8/10. HISTORY: The City’s dog licensing fees have not changed in over ten years. ALTERNATIVES: RECOMMENDED MOTION: Council is requested to provide direction to staff on what fees should be charged for dog licenses. 1 Dog Licensing 6-8-10 Dog Licensing The licensing fees generated add a small amount to the City funds directed to Animal Care & Control. The tag mainly assists in returning a dog to its rightful owner, should it become lost. In 2009, our animal control expenses totaled over $25,500. This amount should be reduced substantially with our new contract with the Humane Society of Skagit County. Cost to the Finance Department to administer the dog licensing program is about $1,500. This includes issuing licenses, maintaining the database, and mailing out annual notices. In 2009, there were 85 lifetime licenses issued and 46 annual unaltered licenses issued. There were no replacement tags issued and no penalties charged. CITY OF ARLINGTON EXISTING DOG LICENSING FEES License Fee ($) Annual License $ 5 male unaltered $ 10 female unaltered Lifetime License $ 2 altered Late Fee $5 Replacement Tag $1.50 City staff reviewed Snohomish County licensing fees as well as the AWC Tax & User Fee Survey for 2008 to determine what other jurisdictions in the state are charging for similar services. Staff is proposing the following fee schedule for dog licensing, based on the review of charges assessed by other jurisdictions and the additional information requested by Council. CITY OF ARLINGTON PROPOSED ANNUAL DOG LICENSING FEES License Fee ($) Dog - unaltered $ 40 20 Dog – altered $ 20 10 Dog – altered (senior citizen owner) $ 15 5 Dog – altered & micro-chipped $ 10 5 Replacement Tag fee $ 5 Late Fee – for failure to purchase annual license before March 1 $ 20 10 Per RCW 49.60.380, the City of Arlington shall honor a request by a blind person or hearing impaired person not to be charged a fee to license his or her dog guide, or a request by a physically disabled person not to be charged a fee to license his or her service animal. All dogs require proof of current Rabies vaccination to be licensed. Proof is also required for alteration and micro-chip to be eligible for the reduced fee. 2 Dog Licensing 6-8-10 IMPACT OF INCREASED FEES FOR DOG LICENSING Under the existing dog licensing fee schedule, he City expects to collect $350 in 2010. With our new animal sheltering services contract with the Humane Society of Skagit County, our estimated cost will be $7,125 for 2010 (down from $25,000). Our existing dog licensing fee covers just 5% toward this amount. This does not allow us to recoup the cost of the tags, the cost of providing and searching the database if a lost dog is located, or the administrative staff time to prepare and mail the annual notices. The City on average renews 150 licenses per year. With the new fee schedule, we would project to collect approximately $2,000 if we issued the same amount of licenses. The proposed fees recoup the costs incurred by the Finance department to administer the dog licensing program. What this does NOT recover are any costs (officer time) associated with animal pick-ups, strays or licensed, and what the City will be charged by the Humane Society for sheltering services.