Ordinance No. 00-29 CITY OF TIGARD, OREGON
ORDINANCE NO.00--,-?q
AN ORDINANCE GRANTING TO PORTLAND GENERAL DISTRIBUTION CO.A FRANCHISE TO
CONDUC A TELECOMMUNICATIONS BUSINESS IN THE CITY OF TIGARD,OREGON, INCLUDING
THE RIGHT TO PLACE POLES,WIRES,AND OTHER APPLIANCES FOR TELECOMMUNICATION
PURPOSES IN THE PUBLIC RIGHTS-OF-WAY;AND AUTHORIZING THE MAYOR TO SIGN THIS
AGREEMENT.
WHEREAS,The ten-year franchise for the communication facilities and services provided by
Portland General Distribution Co. (doing business as Portland General Broadband),described in
the title of this ordinance is now before the City Council for approval. The Council believes that
the franchise should be approved under the terms and conditions set forth in Exhibit A, attached
hereto,and by this reference made a part hereof.
THE CITY OF TIGARD ORDAINS AS FOLLOWS:
SECTION 1. The terms and conditions of the attached franchise agreement, Exhibit A, are
hereby approved and adopted as part of this ordinance as if specifically set forth.
SECTION 2. The Mayor is authorized and directed to sign the attached agreement on behalf of
the Council.
SECTION 3. The City Council determines that the fee imposed by this franchise is not a tax
subject to the property tax limitations of Article XI, Section 11 (b)of the Oregon
Constitution.
PASSED: By lIng irnous vote of all Council members present after being read by number
and title only,this Q,4 day of ober, ,2000.
Catherine Wheatley, City R order
APPROVED:This a'/N'day of OJvt&L, 2000.
IN 14"MR,A
mes Gri ith,
Approved as to forny, � —IT
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City Attorney
Date
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EXHIBIT"A" ;�`s �.� yr nar�0 S< a�xn e
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A franchise agreement between the City of Tigard and Portland General Distribution Co. (doing 6,Wham
business as Portland General Broadband).
SECTION 1. Subject to the other terms and conditions set forth in this document there is hereby
granted by the City of Tigard to Portland General Distribution Co.,a wholly-owned
subsidiary of Portland General Holdings II, Inc.and doing business as Portland
General Broadband, (herein referred to as"Grantee"); its successors and assigns;
subject to the development ordinances and regulations of the City,the right and
privilege to conduct a telecommunications business within said City, or such other
public property as may come within the jurisdiction of the City during the terra of
this agreement for the purpose of furnishing telecommunications services.as
defined in State and Federal Law. This grant includes the right to erect,construct,
place,replace, reconstruct, lay,maintain,and operate poles,wires,switching
equipment,amplifying equipment,fixtures,facilities,appliances, structures and
other devices including,but not limited to,electronic,optical and mechanical
devices customarily associated with Grantee's function in public rights of way and
in public property for the purpose of serving as a telecommunications utility.
This franchise is granted solely for the privilege of providing telecommunications
services as defined by State and Federal Law. This franchise does not include the
right to conduct the business of providing a"cable system"as defined in applicable
law. Should the Grantee desire to provide a cable system within the City,it must
comply with the City's regulations relating to cable communications in force at that
time.
SECTION 2. It shall be lawful for Grantee to make all needful and necessary excavations in any
of said streets,alleys,avenues,thoroughfares,public highways,and public parks.
SECTION 3. The Grantee shall file with the City Engineer or designee maps and materials
showing all proposed underground construction work to include the installation of
additional facilities or relocation or extension of existing facilities within any street,
alley,road or other public way or place within the corporate limits of the City. The
City will review the materials submitted and notify the Grantee of any City
requirements. For repair work or other work not considered underground
construction as stated above,the Grantee shall,if possible, notify the City of the
location and general description of the work before beginning work.
All work shall be done in a reasonably safe manner taking into account City
standard traffic control procedures and in accordance with requirements of
applicable federal laws,state laws,or City ordinances. In emergencies,such
filings shall be submitted within thirty(30)days of completion of emergency
construction work.
SECTION 4. When any excavation shall be made pursuant to the provisions of this ordinance,
the Grantee shall restore the portion of the street,alley,road,or public way or
place to the same condition to which it was prior to the excavation. Ali such work
shall be done in strict compliance with the rules, regulations,ordinances or orders
which may be adopted from time to time during the continuance of this franchise
by the City Council or City Engineer or as may be otherwise provided by law. The
City shall have the right to fix a reasonable time within which such repairs and
restoration shall be completed. If grantee fails to make such repairs and
restoration within the time frame established by the City and after due notice,City
shall cause such repairs to be made at the expense of Grantee.
SECTION 5. The Grantee hereby agrees and covenants to indemnify,save harmless and '
defend the City and its officers,agents and employees from any and all damages,
costs and expenses or claims of any kind whatsoever,or nature,arising from any
injury to persons or property by reason of the negligent act or omission of the
Grantee,its agents or employees in exercising the rights and privileges granted
hereunder and by this franchise,except to the extent such damages,costs,and
expenses are caused by negligent acts or omissions of the City.
SECTION 6. The Grantee shall provide and keep in force public liability insurance,with a
thirty-day cancellation clause,with a combined single limit of one million dollars,
relating to a single occurrence,which shall be evidenced by a certificate of
insurance filed with the City Recorder. The City shall be named as an additional
insured on the policy to the extent of Grantee's indemnity obligations under this
franchise agreement.The insurance shall indemnify and save the City harmless.
against liability or damage which may arise or occur from any claim resulting from
the franchisee's operation under this agreement. In addition,the policy shall
provide for the defense of the City for any such claims.
In lieu of a third-party public liability insurance policy, Grantee may provide and
keep in force self-insurance in an amount at least equal to the limits identified in
the preceding paragraph.The Grantee agrees to indemnify,defend and hold
harmless the City through its self-insurance program against any and all claims,
demands, actions,and suits(including attorney fees and costs)arising out of or
resulting from Grantee's activities to the same extent as if an additional insured
endorsement had been issued. The Grantee shall provide proof of self-insurance
to the City before this agreement shall take effect.
SECTION 7. The City, by its properly constituted authorities,shall have the right to cause the
Grantee to move the location of any pole,underground conduit or equipment
belonging to Grantee whenever the relocation thereof shall be for public necessity,
and the expense thereof shall be paid by the Grantee. Such charges shall comply
with state statutes and administrative rules. Whenever it shall be necessary for
public necessity to remove any pole,underground conduit or equipment belonging
to Grantee or on which any wire or circuit of the Grantee shall be stretched or
fastened,the Grantee,shall,upon written notice from the City,or its properly
constituted authorities,meet with the City Engineer and agree in writing to a plan
and date certain to remove such poles, underground conduit,equipment,wire or
circuit,at Grantee's expense,and if the Grantee fails,neglects or refuses to do so,
the City, by its properly constituted authorities, may remove the same at the
expense of the Grantee. The costs associated with the removal, relocation or
extension of Grantee's facilities at the request of a private developer or
development shall be bome by such private developer or development.
SECTION 8. At such time that Grantee intends to discontinue using or to remove(including
actions pursuant to a City termination orders any telecom�,unicaticns ne-b M-1
facility or facilities within the City,Grantee shall submit a specific plan for such
discontinuance or removal to the City Engineer and shall gain the City Engineer's
approval. The City Engineer may allow Grantee to abandon in place any facility or
facilities, may require the Grantee to remove or modify the facility or facilities within
the public rights-of-way or other public place or property,may cause the facility or
facilities to be removed at the Grantee's expense,or may take any combination of
these actions. Grantee shall complete such removal or modifications in
accordance with a schedule set by the City Engineer. Until such time that
Grantee's property is completely removed and all restorations to the public rights-
of-way or other public places or property have been completed,Grantee shall be
responsible for all necessary repairs,relocations,and maintenance of the facility or
facilities in the same manner and degree as if the facility or facilities were in active
use,and the Grantee shall retain all liability for such facility or facilities.
SECTION 9 Grantee shall maintain a clause in its standard Facilities Agreement to be signed
by all lessees of Grantee's conduit or fiber optic lines authorizing the Grantee to
disclose the lessee's business name and address to the City. Upon entering into a
lease agreement with a new lessee,Grantee shall provide a one-time notice of the
lessee's business name and address to the City.
SECTION 10. All notices and approvals required under this Agreement shall be in writing. The
Grantee shall provide the City with the name, position and phone number of
Grantee staff that can be contacted for administration of this Agreement and for
contact with construction-related questions and comments.
Such notices and approval shall be directed to the City as follows:
City Engineer. City of Tigard
13125 SW Hall Blvd.,Tigard,Oregon 97223
(503)639-4171
SECTION 11. Upon request of the City,the Grantee shall provide available plans and locate any
underground conduit or equipment belonging to Grantee,as required for the
preparation of construction drawings.
SECTION 12. Whenever it becomes necessary to temporarily rearrange,remove,lower or raise
the wires,cables or other plant of Grantee for the passage of buildings, machinery
or other objects, Grantee shall temporarily rearrange,remove,lower or raise, its
wires,cables or other plant as the necessities of the case require;provided,
however,that the person or persons desiring to move any such buildings,
machinery or other objects,shall pay the entire actual cost to Grantee of changing,
altering, moving,removing or replacing its wires,cables or other plan so as to
permit such passage,and shall deposit in advance with Grantee a sum equal to
such cost as estimated by Grantee and shall pay all damages and claims of any
kind whatsoever,direct or consequential,caused directly or indirectly by changing,
altering, moving, removing or replacing of said wires,cables or other plant,except
as may be occasioned through the sole negligence of Grantee. Grantee shall be
given not less than ninety-six(96)hours written notice by the party desiring to
move such building or other objects. Said notice shall detail the route of
movement of such building or other objects over and along the streets,alleys,
avenues,thoroughfares and public highways and shall bear the approval of the
City. Such moving shall be with as much haste as possible and shall not be
unnecessarily delayed or cause Grantee unnecessary expense or waste of time.
SECTION 13. In consideration of the rights and privileges hereby granted,Grantee agrees to pay
to the City the greater of$7,500 per year or five percent(5%)of the gross
revenues derived from exchange access services,as defined in ORS 401.710,and
lease revenues to the extent that lease revenues are separate from and in addition
to revenues derived from exchange access services within the city limits less net
uncollectibles. Such payments shall be made to the City every six months for the
life of this agreement on or before March 15 for the six month period ended
December 31,and September 15 for the six month period ended June 30.
Such franchise payment will be accepted by the City from the Grantee also in
payment of any license, privilege or occupation tax or fee charged for regulatory
or revenue purposes. The franchise payment is not accepted in satisfaction of
payments due to City for the failure of Grantee to perform any of Grantee's
obligations pursuant to this franchise agreement including but not limited to
Grantees'obligations to bear the cost of repairs under Section 4 and the cost of
relocation under Section 6.
The City shall have the right to change the percentage of gross revenues set forth
above at any time during the life of this agreement to any amount permitted by law
provided it has made such notice in writing at least 180 days prior to the effective
date of any change.
a
The City shall have the right to conduct, or cause to be conducted,an audit of
franchise payments as defined herein.Such audits may be conducted at two year
intervals beginning two years after the effective date of this agreement. The City
shall conduct the audit at its own expense. Any difference of payment due either
the City or Grantee through error or otherwise as agreed upon by both the City and
Grantee,shall be payable within sixty(60)days after discovery of such error.
SECTION 14. The rights, privileges and franchise hereby granted shall continue to be in full force
for a period of ten(10)years from the date this ordinance becomes effective. It is
understood and agreed that either party may terminate or renegotiate the terms of
this agreement after 60 days notice in writing.This ordinance shall be subject to
any and all State or Federal laws and regulations.
SECTION 15. The Grantee shall,within thirty(30)days of the effective date of this ordinance,file
with the Recorder of the City its written acceptance of all the terms and conditions
of the ordinance and if not so accepted by the Grantee,this ordinance shall be
void.
DATED this o7'-! 'day of O.f ok vL_ , 2000.
CITY OF TIGARD
OREGON,a Municipal Corporation
By:
Mayor Oam ffith
ATTEST: ILP- 1
Catherine Wheatley
City Recorder
ACCEPTANCE OF FRANCHISE
WHEREAS,the CITY OF TIGARD, OREGON, under date of _ , 2000
passed ORDINANCE NO. ,entitled as follows,to wit:
AN ORDINANCE GRANTING TO PORTLAND GENERAL DISTRIBUTION CO. A FRANCHISE TO
CONDUCT A TELECOMMUNICATIONS BUSINESS IN THE CITY OF TIGARD,OREGON, INCLUDING
THE RIGHT TO PLACE POLES,WIRES,AND OTHER APPLIANCES FOR TELECOMMUNICATION
PURPOSES IN THE PUBLIC RIGHTS-OF-WAY;AUTHORIZING THE MAYOR TO SIGN THIS
AGREEMENT;AND DECLARING AN EMERGENCY.
NOW,THEREFORE, the undersigned, Portland General Distribution Co.,the Grantee named in
said Ordinance,does for itself and its successors and assigns accept the terms,conditions and
provisions of Ordinance No. and agrees to be bound thereby and comply therewith.
IN WITNESS WHEREOF, Portland General Distribution Co. has caused this instrument to be
executed by its officers as below subscribed this day of , 2000.
By
Received by the City of Tigard
this day of ,2000.