Ordinance No. 62-07 ORDINANCE NO. (0 7
AN ORDINANCE GtWTING A YVCfi LC0W 7lvfi u� 'viiLIil iiviiiC}u`.+a
TO NOM WkW 11L4TUP.".T...GAS C M'PA14g;'AN!) F-aIvG TSii--, CONDITIC3Tu Ai"D
COMPENSATION OF.SUCH FRANCHIPT.
IT IS ORDAnm a vm, COUNCIL OF THE CITY OF TIGARD:
Section 1 Definitions and Explanations.
(1) As used in this ordinance;
(a) "Bridge" includes a structure erected within the
City to facilitate the crossing of a river, stream,
ditch, ravine or other place, but does not include
a culvert.
(b) "City" means the City of Tigard, and the area
within its boundaries, including its boundaries
as extended in the future.
(c) "Council" means the legislative body of the City.
(d) "Grantee" means the corporation referred to in
Section 2 of this ordinance.
(e) Gas mains, includes all gas transmission and
distribution facilities located on or under any
street, bridge or public place within the City.
(f) "Person" includes an individual, corporation,
association, firm, partnership and joint stock
company.
(g) "Public place" includes any city-owned park,
place or grounds within the City that is open
to the public but does not include a street or
bridge.
(h) "Street" includes a street, alley, avenue, road,
boulevard, thoroughfare or public highway within
the City, but does not include a bridge.
(2) As used in this ordinance, the singular nsmber may include-
the
ncludethe plural and the plural number may include the singular.
(3) Unless otherwise specified in this ordinance, any action
authorized or required to be taken by the City may be taken by the Council
or by an official or agent designated by the Council.
Section 2. Rights Grauted. Subject to the conditions and
reservations contained In this ordinance, the City hereby grants to
NORTHWEST NATURAL GAS COMPANY, a corporation, the right; privilege
and,franchise to;
(l) c-n-.ts^,:^.t, maintain and _gate a ga$ utility system e
within the City.
(2) Install, maintain and operate on and under the streets
and bridges and public places of the City, facilities for the transmission
and distribution of gas to the City and its inhabitants and to other
customers and territory beyond the limits of the City; and
(3) Transmit, distribute and sell gas.
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Section S, UFe of Bridges and Public Places bGrantee.
(1) Before the Grantee may use oi; acc—apy any bridge car p?-Iblie
plwae, the Grantoe shall first obtain permission from the City so to do
and shall comply with any special conditions the City desires to impose
�-^ on such use or occupation,
(2) 'The cor*ensation paid by the Grantee for this franchise
includes compensation for the use of bridges and public places located
within the City as authorized.
Section 4. Duration. This franchise is granted for a period
of twenty 20 years from and after the effective date of this ordinance.
Section Franchise not Exclusive. This franchise is not
exclusive, and shal5 not be construed as a limitation on the City in:
(1) Granting rights, privileges and authority to other persons
similar to or different from those granted by this ordinance.
(2) Constructing, installing, maintaining or operating any
city-owned public utility.
Section 5, Public Works and Improvements not Pxrected by
Franchise. The City reserves the right to:
(1) Construct, install, maintain and operate any public
improvement, work or facility.
(2) Do any work that the City may find desirable on, over
or under any street, bridge or public place.
(3) Vacate, alter or close any street, bridge or public place.
(4) Whenever the City shall excavate or perform any work in
any of the present and future streets, alleys and public places of the
City, ur shall contract, or issue permits, for such excavation or work
where such excavation or work may disturb Grrntee's gas mains, pipes
and appurtenances, the City shall, in writings notify Grantee suYi'icieiitly
in advance of such contemplated excavation or work to enable Grantee to
take such measures as may be deemed necessary to protect such gas mains,
pipes, and appurtenances from damage and possible inconvenience or injury
to the public. In any such case, the Grantee, upon request, shall furnish
maps or drawings to the City or contractor, as the case may be, shor.°ing
the apprao.mate location of all its structures in the area ;nvolved in
such proposed excavation or other work.
(5) Whenever the City shall vacate any street or public place
for the convenience or benefit of any person or governmental agency and
instrumentality other than the City, Grantee's rights shall be preserved
as to any of its facilities then existing in such street or public place.
Section T. Continuous Service. The Grantee shall maintain
and operate an adequate system for the distribution of gas in the City.
The Grantee shall use due diligence to maintain continuous and uninter-
rupted 24-hoar a d y service which shall at all times conform at least
to the standards common in the business and to the standards adopted
by state authorities and to standards of the City which are not in
conflict with those adopted by the state authorities. Under no cir-
cumstances shall the Grantee be liable for an interruption or failure
of service caused by act of God, unavoidable accident, or other circum-
stances beyond the control of the Grantee through no fault of its own.
Section 8. Safety Standards and Work Specifications.
(1) The facilities of the Grantee shall at all times be main-
tained in a safe, substantial and workmanlike manner.
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(2) For the purpose of carrying out the provisions of this
section, the City may provide such specirications relating thereto as may
be necessary or convenient for public safety or the orderly development
of the City. The City may amend and add w ouc:, specifications from
time to time.
_
Section ,.
Control of Construction. 'lie Grantee aha:...' file vith
the Citv maps showing the toeataon or w �Yl
cst=A ti=, ox ensign or relocation
of its gas mains in the streets of the City and shall obtain from the Cit'r
approval of the location and plans prior to commencement of the work. The
City may require the Grantee to obtain a permit before commencing the con-
struction, extension or relocation_ of any of its gas mains.
Section 10. Street Excavations and Restorations.
(1) Subject to the provisions of this ordinance, the Grantee may
make necessary excavations for the purpose of constructing, installing,
maintaining and operating its facilities. Except in emergencies, prior
to making an excavation in the traveled portion of any street, bridge or
public place, and, when required by the City, in any untraveled portion
of any street, bridge or any public place, the Grantee shall obtain from
,.t_ f the proposed excavation and of its location.
uliG City etj�yivYai vt .. p.e^r____
(2) Except as provided in subsection (3) of this section,
when any excavation is made by the Grantee, the Grantee shall promptly
restore the affected portion of the street, bridge, or public place to
the same conditions in which it was prior to the excavation. The
restoration shall be in compliance with specifications, rcquiramento
and regulations of the City in effect at the time of such restoration.
If the Grantee fails to restore promptly the affected portion of a
street, bridge or public place to the same condition in which it was
prior to the excavation, the City may make the restoration, and the
cost thereof sAall be paid by the Grantee-
(3) At its option, the City may restore or resurface the
affected portion of any street, bridge or public place excavated by the
Grantee, and the cost thereof shall be paid by the Grantee.
Section 11. Location and Relocation of Facilities.
(1) All facilities of the Grantee shall be ylaecd so that
they do not interfere unreasonably with the use by the City and the public
of the streets, bridges and public places and in accordance with any
specifications adopted by the City governing the location of facilities.
(2) The City may require, in the public interest, the removal
or relocation of facilities maintained by the Grantee in the streets of
the City, and the Grantee shall remove and relocate such facilities within
a reasonable time after receiving notice so to do from the City. The cost
of such removel or relocation of its facilities shall be paid by the Grantee,
but when such removal or relocation is required for the convenience or benefit
of any person or governmental agency and instrumentality other than the City,
Grantee ahaLL be entitled to reimbursement for the reasonable cost thereof
from such person, agency or instrumentality.
Sects- 12. Compensation.
(1) As compensation for the franchise granted by this ordinance,
the Grantee shall pay to the City an amount equal to two per cent (2%) of
the gross revenue collected by the Grantee from its customers for gas.
consumed within the City. Gross revenue shall be computed by deducting
from the total billings of the Grantee the total net writeoff of uncollectible
accounts and excluding sales of gas at wholesale by the Grantee to any public
utility or public agency where the public utility or public agency purchasing
such gas is not the ultimate consumer, and by deducting revenues derived
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from the sale of such gas under a tariff schedule applying to gas supplied
for industrial pu.Yo
(2) The compensation required by this section shcli accrue from
and after January 1, 1962 and shall be due for each calendar half year, or
fraction thereof, within sixty (60) days after the close of such calendar
u"„' yap.: or fr:cti: +rAreof: within sixty (60) d&vs after -the termination.
I- of this franchise, comp--raation shall be naid for the period elapsing since i
'tile close of the last ^'' ^''•=r ''�,f 3�. per w`±ich ec +ersetion has bee-.a paid.
(3) The Grantee shall furnish to the City with each payment
of compensation required by this section a written statement, under oath,
executed by an officer of Grantee showing the amount of gross revenue of
the Grantee within the City for the period covered by the payment computed
on the basis set out in subsection (1) of this section. The compensation
for the period covered by the statement shall be computed on the basis
of the as roVQnnP. so reported. If the Grantee fails to pay the entire
amount of compensation due the City through error or otherwise, the
difference due the City shall be paid by the Grantee within 15 days from
disem-ery of the error or determination of the correct amount. Any over-
payment to the City through error or otherwise shall be offset against the
next payment due from the Grantee.
(4) Acceptance by the City of any Payment due under this
section shell not be deemed to be a waiver by the City of any breach
of this franchise occurring prior thereto, nor shall the acceptance
by the City of any such payments preclude the ,ity from later estab-
lishing that a larger amount was actually due, or from collecting any
balance due to the City.
(5) Upon 30 days' prior written notice by either party to the
other, the rate of compensation set forth in subsection (1) of this section
shall be subject to renegotiation and redetermination at the end of the
first ten-year period of the term of the franchise hereby granted, for the
remaining ten-year period of said franchise term.
Section 13 Books of Aceount and Reports. The Grantee shad
keep accurate books of account at an office in Oregon for the purpose of
determining the'amounts due to the City under Section 12 of this ordinance.
The City may inspect the books of account at any time during business hours
and may audit the books from time to time. The Council may require periodic
reports from the Grantee relating to its operations and revenues within the
City.
Section 14. Collection Facilities. The Grantee may maintain
facilities JF the City where its customers may pay their bills for gas
service during normal business hours.
Section 15 Supplying Mena upon Reiuest. The Grantee shall
maintain c9 file, at an office in Oregon, maps and operational data
pertaining`to its operations in the City. The City may inspect the
maps and data at any time during business hours. Upon request of the
City the Grantee shall furnish to the City, without charge and on a
current basis, maps showing the location of the gas mains of the Grantee
in the City.
Section 16. Indemnification. The Grantee shall indemnify and
save harmless the City and its officers, agents and employees from any aLft
all loss, cost and expense arising from damage to property and/or injury to
or death of persons due to any wrongful or negligent act or omission of the
Grantee, its agents or employees in exercising the rights, privileges and
franchise hereby granted.
section 17. Assignment of Franchise. This franchise shall be
binding upon a" an inure to the Benefit 5 Feguccessors, legal representatives
and assigns of the Grantee.
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Section 18. Termination of Franchise for Cause. Upon the willful
failure of the 3rantee, after 0 dayst notice and demand in writing, to perform
promptly and coapl.etely each and every term, condition or obligation imposed
upon it under or pursuant to this ordinance, the City may terminate this
franchise, subject to Grantee's right to a court review of the reasonableness
r of such action.
" �tection 2 %rmit and Inspection gees. Nothing in this ordinance
shah be construed to Limit the ri of the City to require the Grantee to pay
reasonable costs incurred by the City in connection with the issuing of a per-
mit, making of an inspection, or performing any other service for or in connec-
tion with the Grantee or its facilities, whether pursuant to this ordinance or
any other ordinance or resolution now in effect or hereafter adopted by the City.
Section 20 Remedies not Exclusive; When Requirement Waived.
All remedies and penalties under this ordinance, including termination of the
franchise, are oumulative, and the recovery or enforcement of one is not a bar
to the recovery or enforcement of any other such remedy or penalty. The
remedies and penalties contaisad in this ordinance, including termination of
the franchise, are not exclusive, and the City reserves the right to enforce
--. uaacc or remol t- nn and to avail itself of any
the Penal Provisions ai sny vtv�::...� ..�
and all remedies available at law or in equity. Failure to enforce shall not
be construed as a waiver of a breach of any term, condition or obligation
imposed upon the Grantee by or pursuant to this ordinance. A specific v�aiver of
a particular breach of any term, condition or obligation inp.osed upon the
Grantee by or pursuant to this ordinance shall not be a waiver of any other
or subsequent or future breach of the same or of any other term, condition or
obligation, or as a waiver of the term, condition or obligation itself.
Section 21. When Effective. it is hereby declared that an emergency
exists and that it is necesaary for the immediate preservation of the peace,
health, and safety of the people of the City of Tigard, Oregon, that this
ordinance become effective imnnediately in order to provide continuity of gas
service, insure public revenues, and authorize the proper use of public
property within the City, and this ordinance shall be in full force and effect
upon its passage by the Council and approval by the ftror:
Section 22. Acceptance. The Grantee shall, within thirty (30) days
from the date this ordinance takes effect file with the City its written
unconditional acceptance of this franchise and if the Grantee fails so to do,
this ordinance shall be void.
PASSED by the Council this day of AfA C c& , 1962.
APPROVED by the Mayor this day of Mw R c u, 1962•
/} Mayor of the City ofard, Oregon
AT.�T:/
s
Recorder Clerk of the City of Tigard, Oregon
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ACCEPTANCE OF ORDINANCE N0. 62-7
TO THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF TIGARD, OREGON:
,- N'orthwrest Natural Gas Company, a corporation, hereby unconditionally
: ap accepts Ordinance No. 62-7 of the City of Tigard and all of the terms, provi-
sions, and conditions thereof, said Ordinance No. 62-7 being en-;itled:
AN ORDINANCE granting a non-exclusive gas utility
franchise to Northwest Natural Gas Company, and fixing
terms, conditions and compensation of such franchise.
which said Ordinance No. 62-7 was duly passed and adopted by the Council
�.^. the 5+7, A— cif Ma_reh; 1962, and approved by the Mayor of said City of
Tigard on the 5- day of i"1 ti r t_.L, , 1962.
IN WITNESS WHEREOF said Northwest Natural Gas Company has caused
this acceptance of said Ordinance to be signed by its vice president, and 1
its corporate seal to be affixed hereto and attested by its secretary, this
day of 1962'
NORTHWEST NATURAL GAS COMPANY
ATTEST:
By
ice Presid nt
Secretary
- STATE OF OREvON
ss.
County of Multnomah
On this day of ZZ4, , 1962, personally appeared
who, beiig duly sworn, did say that he
is the Vice PresidezSt of Northwest Natural Gas Company and that the seal affixed
to the foregoing instrument is the corporate seal of said corporation and that
said instrument was signed and sealed in behalf of said corporation by authority
of its board of directors; and he acknowledged said instrument to be ite volun-
tary act and deed. Before me:
Notary Public for Oregpn
My Commission expire/ �f Lr2rrQ�}�