Ordinance No. 14-14 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
ORDINANCE NO. 14--11
AN ORDINANCE AMENDING TIGARD MUNICIPAL CODE CHAPTER 15.06 "FRANCHISED
UTILITY ORDINANCE"TO MODIFY T13E UTILITY RIGHT-OF-WAY USAGE FEE STRUCTURE.
WHEREAS, Tigard Municipal Code ("TMC' Chapter 15.06 governs use of the rights-of-way 'by utility
operators;and
WHEREAS, T`MC Section 15.06.100 A "Right-of-Way Usage Fee" provides for a fee to ensure the City
receives fair and reasonable compensation for private use of the rights of-way. Clarification is needed to
address utility companies ownership of facilities in the rights-of-way and to update the annual fee;and ,
WHEREAS, TMC Section 15.06.020 defines "Gross Revenues" for purposes of calculating the Right-of-Way
Usage Fee. Clarification is needed to ensure that the City is compensated based on the benefits derived from
utility use of the public rights-of-way within the City.
NOW,THEREFORE,1'11 L'• CITS'OF TIGARD ORDAINS AS FOLLOWS:
SiC:TION 1: Sections of,rmc Chapter 15.06 are amended as set forth as Exhibit A to this ordinance and
are approved and adopted by the City Council.
SEC'CION 2: IbLs ordinance shall be effective 30 days after its passage by the council, signature by the
mayor,and posting by the city recorder.
PASSED: By lI� lrLlA-, vote of all council members present after being read by number
and title only,this 9^day of 2014.
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APPROVED. By Tigard City Council this day of mt,4,th> 201 .
Approvedaxt� Firm:
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Special .<>uitsel
Date
ORDINANCE.No. 14-
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EXHIBIT A
Hugh text is deleted from the Code and underlined text is added to the Code.
Tigard Municipal Code
Chapter 15.06 FRANCHISED UTILITY ORDINANCE
Section 15.06.100 Right-of-Way Usage Fee (subsection A)
■ A. All persong using Any person that owns a utility system or facility in the right-of-way to
f the City of Tigard and derives gross revenues from such
system or facility from customers within the City of"Tigard shall pay a right-of-way usage fee that
is the greater of: (1) the applicable percentage of gross revenues set forth in subsection B of this
section or (2) $10,009:084,000.00. Any person that owns a utility system or facility in the right-of-
way of the City of Tigard but does not derive any gross revenues from such system or facility from
customers within the City of TWrd shall pay a right-of-way usage fee that is the greater of. (1) the
linear foot fee set by council resolution pursuant to subsection C of this section or (2)
51 ,WO.00 4 000.00. Any person using= a utilitc system or facility in the right-of-way which that
person does not own to pro%ide service to customers within the City of Tigard shall pay a right-
of-way usage fee that is the applicable percentage of gross revenues set forth in subsection B of
this section. 'Ilse right-of-way usage fee is subject to any applicable limitations imposed by federal
and state statutes,including the privilege tax limitations set forth in ORS 221.410 through 221.655.
Payment shall be made on the schedule set forth in subsection F., of this section or as specified in a
franchise agreement.
15.06.020 Definitions (definition of"gross revenues")
"Gross revenues" means rtvt!ntces-all amounts, less nct uncollectiblcL un cd or derived from the
operation of a utility system and from the use of a utility system to serve customers within the city,
.__._._ ou__��_�_._. including but not limited to amounts earned or derived from the sale of
electrical energy, gas, telecommunications, water, or sanitary sewage disposal and treatment service,
and for the use,rental, or lease of utility facilities of the utility engaged in such business.
1. "Gross revenues" shall not include proceeds from the sale of bonds, mortgage or other evidence
of indebtedness,securities or stocks.
2. To the extent that the city's authority to tax gross revenues of an entity is limited by ORS 221.410
through 221.655,the city shall apply the statutory limitations to the definition of"gross revenues."
ORDINANCE No. 14-
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