1. 1 Franchise Tools- can they protect? Disclaimer: all materials are the responsibility of Robert Beaumier, individually and not anyone else or on behalf of anyone else. Contact information rbeaumier@spokanecity.org (509) 625 6284

2. 2 BASIC FRANCHISE ELEMENTS Preserve local investment in Streets Avoid enhanced liability or risk from Franchisees Try to regulate use; keep people in their spot; keep traffic moving; protect local infrastructure (city utilities etc.)

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10. 10 CONSEQUENCES Both Wells affected 6-12 months to replace; costs estimated in $20M range Could contaminate 34 reservoirs storing over 100 MG 900 miles of City water lines Half Municipal Water Supply; pump to all areas served 72,000 Accounts; trucking water @ 20 Gal ration/day = @ 1.5 million gallons/d day. Estimated cost: $2Million/day Commercial establishments hospitals have to have alternative supplies

11. 11 Traditional Rule- No franchise without City consent: 12 McQuillan on Municipal Corporations, section 34.10 at 38. Federal Court: Olympic Pipeline v. Seattle, 437 F3d 872 (9th Cir. 2006); municipal regulatory authority preempted by federal safety regulations 49 CFR 195

12. 12 Conclusions Local franchise authority compromised by federal preemption CFRs fail to address egregious problems such as our wellhead Difference between “siting” vs “safety” areas not well delineated Federal standards should not be a shield to avoid local needs Local governments and their citizens should not have to bear extraordinary risks of catastrophic losses.