Ordinance No. 82-22 i
CITY OF TIGARD, OREGON
ORDINANCE No. 82
AN ORDINANCE GRANTING A NON-EXCLUSIVE GAS UTILITY FRANCHISE TO NORTHWEST NATURAL
GAS COMPANY, AND FIXING TERMS, CONDITIONS AND COMPENSATION OF SUCH FRANCHISE.
THE CITY OF TIGARD ORDAINS AS FOLLOWS:
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) "Puolic 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 ,
highway, or public right-of-way within the City, but does not include a bridge.
(2) As used in this ordinance, the singular number may include the 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 Granted. Subject to the conditions and reservations contained
in this ordinance, the City hereby grants to NORTHWEST NATURAL GAS COMPANY, a
corporation, the right, priviledge and franchise to:
(1) Construct, maintain and operate a gas utility system within the City; and
(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.
'ORDINANCE No. 82-Y.
Section 3: Use of Bridges and Public Places by Grantee.
(1) Before the Grantee may use of occupy any bridge of public place, the Grantee
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 compensation 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 ten (10) years
from and after the effective date of this ordinance.
Section 5: Franchise Not Exclusive: This franchise is not exclusive , and shall
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 6: Public Works and Improvements Not Affected by Franchise. The City
reserves the right to:
(1) Construction, 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, or shall contract,
i or issue permits, for such excavation or work where such excavation or work
may disturb Grantee 's gas mains, pipes and appurtenances, the City shall, in
writing, notify Grantee 60 days 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 and specifications to
the City or contractor, as the case may be , showing the location of all its
structures in the area involved 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 , unless the City Council shall determine
the public's health, safety and welfare is better served otherwise.
Section 7: 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 uninterrupted 24-hour a day 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 inconflict with those adopted by the state authorities. Under no circumstances
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shall the Grantee be liable for an interruption or failure of service caused by
act of God, unavoidable accident or other circumstances beyond the control of the
AN 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 maintained in a safe,
substantial and workmanlike manner.
(2) For the purpose of carrying out the provisions of this section, the City
may provide such specifications relating thereto as may be necessary or
convenient for public safety or the orderly development of the City.
The City may amend and add to such specifiations from time to time. s
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Section 9: Control of Construction. The Grantee shall file with the City maps ,
drawings and specifications showing the location of any construction, extension
or relocation of its gas mains in the streets of the City and shall obtain from
the City 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 construction,
extension or relocation of any of its gas mains. f
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Section 10: Street Excavations and Restorations.
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(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 is emergencies whereby the public health
safety and welfare is immediately endangered, 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 C
public place, the Grantee shall obtain from the City approval of the proposed ;
excavation and of its location. In case of emergency work, Grantee shall
notify the City of said work within two (2) working days.
(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 equal or better condition than which it was
prior to the excavation. The restoration shall be in compliance with specifiations,
requirements 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 shall be paid by the Grantee.
(3) At its option, the City may restore or resurface the affected portion of any street,
bridge of 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 placed 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, or
deemed necessary 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 and/or installed by the Grantee in the streets or ',
in any public place or bridge of the City, and the Grantee shall remove and
relocate such facilities within 60 days after receiving notice so to
do from the City. The cost of such removal or relocation of its facilities shall
be paid by the Grantee , but when such removal or relocation is required for the
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ORDINANCE No. 82-,1,2_
convenience or benefit of any persons or governmental agency and instrumentality
other than the City, Grantee shall be entitled to reimbursement for the reasonable
cost thereof from such person, agency or instrumentality.
Section 12: Compensation.
(1) As compensation for the franchise granted by this ordinance, the Grantee shall
pay to the City an amount equal to three percent (3%) 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 uncollectable accounts, revenues derived
from the sale of gas supplied for industrial purposes under an interruptible
tariff schedule , and 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.
(2) The compensation required by this section shall accrue from and after the
effective date of this ordinance , and shall be due for each calendar half year,
or fraction thereof, within sixty (60) days after the close of such calendar
half year or fraction thereof. Within sixty (60) days after the termination
of this franchise, compensation shall be paid for the period elapsing since the
close of the last calendar half year for which compensation has been 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. This compensation for the period covered by the statement shall
be computed on the basis of the gross revenue 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 fifteen (15) days from
discovery of the error or determination of the correct amount. Any overpayment
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 shall 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 City
from later establishing 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 five-year period
of the term of the franchise hereby granted, for the remaining five-year period
of said franchise term.
Section 13: Books of Account and Reports. The Grantee shall 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 in the City
:here its customers may pay their bills for gas service during normal business hours.
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ORDINANCE No. 82-
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Section 15: Supplying Maps upon Request. The Grantee shall maintain on 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 and 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 and inure to
the benefit of the successors, legal representatives and assigns of the Grantee.
Section 18: Termination of Franchise for Cause. Upon the willful failure of the Grantee,
after sixty (60) days notice and demand in writing, to perform promptly and completely each
and every term, condition or obligation imposed upon it under or pursuant to this
ordinance, the City shall initiate and undertake proceedings before a Hearings Officer
and/or the City Council to terminate this ordinance, subject to Grantee's right to file
a writ of review.
Section 19: Permit, Permit Guarantee and Inspection Fees. Nothing in this ordinance
shall be construed to limit the right of the City to require the Grantee to pay
reasonable costs incurred by the City and to provide reasonable guarantees to the
City in connection with the issuing of a permit, making of an inspection, or performing
any other service for or in connection 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 cumulative , 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 contained in this oitdinance,
including termination of the franchise, are not exclusive and the City reserves the right
to enforce the penal provisions of any ordinance or resolution and to avail itself of any
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 waiver of a particular breach of any term,
condition or obligation imposed 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 necessary for the immediate preservation of the peace, health, and safety of the
people of the City of Tigard, Oregon, that this ordinance become effective immediately
in order to provide continuity of gas service , insure public revenues, and authorize
the proper use of public property iwthin the City, and this ordinance shall be in full
force and effect upon its passage by the Council and approval by the Mayor. This
ordinance is effective from and after the 4th day of March, 1982.
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Section 22: Acceptance. The Grantee shall, within thirty (30) days from this
of , 1982, file with the City its written unconditional
t^ acceptance of thii franchise, and if the Grantee fails so to do, this ordinance
shall be void.
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PASSED: B vote of all Council members resent, after being
Y u 'i ��r,,-,n_airs p g
read two times by number and title only this /e7�-day of /tj 1982.
Recorder - City of Tig
APPROVED: By the Mayor, this day of ��ae� , 1982. !
ry
Mayor - City of Tigard
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