Ordinance No. 08-21A CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
ORDINANCE IVC.?. 08- —
AN ORDINANCE AMENDING TIGARD MUNICIPAL CODE SECTION 15.46.100
"RIGHT-OF-WAY USAGE FEES'TU INCLUDE A PER FOOT FEE.
WHEREAS, Tigard Municipal Cotte ('TMC") Chapter 15.06 governs use of the rights-of-way by
utility operators,including the fee to be paid for such use;and
WHEREAS, TMC section 15.06.100 establishes a right-of-way usage feecalculated as a percentage.
of gross revenues earned within the City from the sale of utility services to customers within the
City;and
WHEREAS, the City understands that some utility operators do not earn gross revenues as defined
in TMC Chapter 15.06 and thus would owe the City 0 under the existing tight-of-way usage fee;
and
WHEREAS, the intent of the right-of-way usage fee is to ensure that the City receives fair and
reasonable compensation for private use of the rights-of-way; and
WHEREAS, the City has determined that amending the right-of-way usage fee provisions of the
TNTC to require payment of the fee that is greater of (1) the gross revenues-based fee currently set
forth in TMC 15.06.1.00, or (2) a per linear forst-based:fee of a utility's facilities in the right-of-way
will ensure that utility operators with facilities in the right-of-way that do not generate gross
revenues as defined in TMC 15.06will nevertheless pay fair and reasonable compensation for their
use of the rights-of-way;and
WHEREAS, the City has determined that the Council should be authorized to establish the fee to
be charged per linear Riot of facilities in the City's rights-of-way by:resolution.
Now, therefore,
THE CITE' OF TIGARD ORDAINS AS FOLLOWS:
SECTION 1; Section 15.06.100 of the TMC is amended as set forth:below. ( ilfuaeugh text is
deleted from the Code and underlined text is added to the Code.)
1. All persons using a utility system or facility in the right-of-way to provide service to
customers within the City of Tigard shall annually pay a tight-of-way usage fee that is the greater
of eealeulate as a the anplicable percentage of gross revenues set forth in subparagraph.2 of
this section 15.06.100 or Cn the linear foot fee set by Council resolution pursuant to
subparagraph 3 of this section 1106.100 subject to any applicable limitations'imposed by federal
ORDINANCE NO. 08-D 1-4
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and state statutes, including the privilege tax limitations set forth in ORS 221.410 through
221-655.
2. The right-of-way usage fee percentage applicable to each class of utility shall be as follows:
Telecommunications: 5.0%
Electric: 3.5%
Natural Gas: 5.0%
Water: 5.0%
Sanitary Sewer 5.0%
3. The City Council is hereby authorized to establish by resolution a ht-of-wa usage fee
calculated based on the total linear feet of a utility operator's facilities in the rip_hts-of-way.
34. Right-of-way usage fee payments shall be net of any franchise fee payments received by the
City,but in no case will be less than$0.
45. Unless otherwise agreed to in writing by the City, the right-of-way usage fee shall be payable
semi-annually on or before March 15 for the six month period ended the previous December 31,
and September 15 for the six month period ended the previous June 30. The utility shall pay
interest at the rate of nine percent per year for any payment made after the due date.
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SECTION 2: This ordinance shall be effective 30 days after its passage by the Council, signature
by the Mayor,and posting by the City Recorder.
PASSED: By k- "OLAXIYnOL6 vote of all Council members present after being read by
number and tide only this day day of December, 2008.
Catherine Wheatley, City Recorder
APPROVED: By Tigard City Council this (PA day of December,200
Craig('16?ksen,Mayor
APPOVED AS TO FORM
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ORDINANCE NO. 08-, -A
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