A city or town may require that a service provider that is constructing, relocating, or placing ducts or conduits in public rights-of-way provide the city or town with additional duct or conduit and related structures necessary to access the conduit, provided that:
(1) The city or town enters into a contract with the service provider consistent with RCW 80.36.150. The contract rates to be charged should recover the incremental costs of the service provider. If the city or town makes the additional duct or conduit and related access structures available to any other entity for the purposes of providing telecommunications or cable television service for hire, sale, or resale to the general public, the rates to be charged, as set forth in the contract with the entity that constructed the conduit or duct, shall recover at least the fully allocated costs of the service provider. The service provider shall state both contract rates in the contract. The city or town shall inform the service provider of the use, and any change in use, of the requested duct or conduit and related access structures to determine the applicable rate to be paid by the city or town.(2) Except as otherwise agreed by the service provider and the city or town, the city or town shall agree that the requested additional duct or conduit space and related access structures will not be used by the city or town to provide telecommunications or cable television service for hire, sale, or resale to the general public.(3) The city or town shall not require that the additional duct or conduit space be connected to the access structures and vaults of the service provider.(4) The value of the additional duct or conduit requested by a city or town shall not be considered a public works construction contract.(5) This section shall not affect the provision of an institutional network by a cable television provider under federal law.