Ord 2328 - PGE Franchise Agrmt
COUNCIL BILL NO. 2430
ORDINANCE NO. 2328
AN ORDINANCE G~NTING PORTLAND GENERAL ELECTRIC COMPANY, AN
OREGON CORPORA ION, A NONEXCLUSIVE FRANCHISE FOR TEN YEARS TO
OPERATE AN EL CTRIC LIGHT AND POWER SYSTEM WITHIN THE
CORPORATE LIMIT$ OF THE CITY OF WOODBURN, FIXING THE TERMS AND
CONDITIONS; PROV1DING AN EFFECTIVE DATE; AND REPEALING ORDINANCE
NO. 2109
THE CITY OF WOODBURN ORDAINS AS FOLLOWS:
Section 1 - Franchise Granted
Portland General Electric Company, an Oregon Corporation ("Company"), is hereby
granted a non-exclusive Franchise to operate an electric light and power system within
the corporate limits of the City of Woodburn ("City"), subject to the terms and conditions
of this ordinance,
A. Definitions. As used in this ordinance:
"City" means the City of Woodburn, a municipal corporation of the State of
Oregon, and its duly authorized officers, employees, agents or assigns.
"City Engineer" means the duly appointed City Engineer of Woodburn, Oregon.
"City Recorder" means the duly appointed City Recorder of Woodburn, Oregon.
"Company" means Portland General Electric Company.
"Company facilities" means all poles, wires, fixtures, equipment, underground
circuits, conduit, and other property necessary or convenient to the supply of
electric energy owned or operated by the Company within the corporate limits of
the City.
"Corporate limits of the City of Woodburn" means the City boundary as it now
exists or may be amended during the term of this Franchise.
"Franchise to operate an electric light and power system" includes the right and
privilege to erect, construct, repair, maintain and operate poles, wires, fixtures,
conduit, equipment, underground circuits and other property necessary or
convenieJilt to supply the City, its inhabitants and other persons and territory with
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electric energy for light, power and other purposes, upon, over, along, under and
across the, streets, alleys, roads and any public right-of-way, property or place.
"Gross reyenue" includes any revenue earned by the Company within the City
from the! sale of electric energy after adjustment for the net write-off of
uncollecti~le accounts computed on the average annual rate for the entire
Company j excluding existing sales of electric energy sold by the Company to any
public uti~ity when the public utility purchasing such electric energy is not the
ultimate cPnsumer. Gross revenue shall include revenues from the use, rental or
lease of *e Company's operating facilities of the utility other than residential-
type spact and water heating equipment under tariffs filed with and approved by
the Oregon Public Utility Commission (OPUC). Gross revenue shall not include
proceeds from the sale of bonds, mortgages or other evidence of indebtedness,
securities or stocks, revenue from joint pole use, or revenue paid directly by the
United States of America or any of its agencies. The meaning of "gross revenue"
as used in this ordinance shall be amended and interpreted consistently with
regulations prescribed by OPUC for determining the amount of franchise fees
allowed as operating expenses of a utility for ratemaking purposes.
"Person" includes any individual, group of individuals, or legal entity.
"OPUC" means the Oregon Public Utility Commission, and any successor or
additional agency empowered by the State of Oregon to regulate public utilities.
"Public project" means any project for work in the right of way that is not
undertaken to benefit a specific development or redevelopment project on private
property and that is not undertaken to benefit a public utility or service provider
other than the City.
"Public right-of-way" includes the public streets, alleys, roads, dedicated rights-
of-way, easements, and other public property, way or place within the corporate
limits of the City, and further includes that portion of private property upon which
a preliminary subdivision or partition plat has been approved by the City for
provision of public utilities within the corporate limit of the City, which is
expected to be dedicated to the City and over which the City shall have
administration, ownership and control.
"Public utility" means any individual, partnership, cooperative, corporation or
government agency buying electric energy and distributing such electric energy to
other customers or users.
B. Facilities! Subject to Ordinance. All Company facilities within the City limits
shall be ~eemed to be covered by the terms of this ordinance.
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C. Compliance with Laws. The Company shall at all times be subject to all laws,
statutes, ordinances, codes, rules, regulations, standards, and procedures regarding
the Company's facilities, whether Federal, State or local, now in force or which,
hereinafter, may be promulgated (including but not limited to zoning, land use,
historic ~reservation ordinances, safety standards, and other application
requirem$ts)), unless specifically exempted.
D. Unless ot!erwise specified in this ordinance, any action authorized or required to
be taken by the City may be taken by the W oodbum City Council or its designee.
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Section 2 - Term of Franchise and Effective Date
This ordinance shall become effective March 1, 2003, and shall terminate on December
31,2012.
Section 3 - Revocation
A. General. In addition to any rights set out elsewhere in this document, the City
reserves the right to declare a forfeiture or otherwise revoke this Franchise, and all
rights and privileges pertaining thereto, under certain circumstances.
B. Conditions of Revocation. The grounds for which the City may declare forfeiture
or revoke the Franchise are the following:
1. If the Company is in substantial violation of any material provision of the
Franchise agreement and fails to correct the violation after written notice
of the violation and proposed forfeiture and a reasonable opportunity
thereafter to correct the violation;
2. The Company becomes insolvent, unable or unwilling to pay its debts, or
is adjudged bankrupt;
3. The Company is found by a court of competent jurisdiction to have
engaged in fraud or deceit upon the City; or
4. The Company fails to obtain and maintain any right granted by any state
regulatory body, required in order to provide electric service to customers
within the City or to construct, maintain and operate the system; provided,
however, that the Company shall be allowed a reasonable time to cure
failure to obtain any permit.
C. Due Proc~ss. Upon the occurrence of one of the events set out above, following
30 days written notice to Company of the occurrence and the proposed forfeiture
and an opportunity for Company be heard, the City may by ordinance declare a
forfeiture~ In a hearing, the Company shall be afforded due process rights.
Findings from the hearing shall be written, and shall stipulate the reasons for the
City's decision. In the event the Company believes the City improperly has
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declared a forfeiture, the Company may file such proceeding as is appropriate in a
court of c<j>mpetent jurisdiction.
D. The City ~eserves the right to cancel this Franchise at any time upon one year's
written n~tice to the Company in the event that the City decides to engage in
public ovrnership of light and power facilities and the public distribution of
electric energy to customers throughout the City.
Section 4 - Con~ruction to be Approved by City
A. Before the Company may conduct underground work involving excavation, new
construction or major relocation work in any public right-of-way, the Company
shall first notify the City, furnish appropriate maps and drawings, and provide not
less than forty-eight (48) business day hours notice, except in the case of an
emergency. The City will not sell or transmit Company maps or data to third
parties unless permitted by the Company. The City shall upon request make
available to the Company any City prepared maps or data which are a matter of
public record, to facilitate permitting or the Company's capital planning. These
maps or data shall be made available to Company upon payment of the applicable
public records fees.
B. In the case of an emergency the Company shall file maps and drawings with the
City Engineer showing any construction work done by the Company within the
corporate limits of the City, within thirty (30) days after completion of the work.
C. Such construction work shall be done in a reasonably safe manner in accordance
with requirements of applicable ordinances, State laws, and rules. In all
circumstances pertinent to this Franchise, any actions by the Company's
contractors shall be the responsibility of the Company. Any contractor of the
Company shall be bound by all terms and conditions of this Franchise.
Section 5 - Location and Relocation of Company Facilities
A. City Approval Required for Company Installations, Excavations and Restorations.
Subject to City approval, the Company may make all necessary excavations in
any public right-of-way for the purpose of erecting, locating, installing,
constructing, repairing, maintaining, removing and relocating Company facilities.
The location of Company facilities in the public right-of-way shall be at places
approved by the City. Except in emergencies, the City may require the Company
to obtain a pennit prior to commencing any work pursuant to this section pursuant
to the City's ordinances or regulations. In emergencies, the Company shall take
reasonable measures to notify the City Engineer prior to commencing work.
B. Removal or Relocation - Temporary or Permanent. In accordance with ORS
221.420, the City may require the Company to remove and relocate transmission
and distribution facilities maintained by the Company in any public rights of way,
property or place of the City by giving notice to the Company. The Company
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shall, upcfu ten (10) days written notice from the City, respond and begin the
design process to relocate such facilities. Both parties will, to the greatest
possible e~tent, agree on a relocation plan that provides for a suitable location for
both grO~d and aerial transmission. In the event of a disagreement regarding
suitable I cation, the City's determination shall be final subject to state law and
regulatio ,s including, but not limited to, the National Electrical Safety Code. If
the City'~ determination of a location requires the acquisition of easements or
right-ofwky, the required easements or right-of way from private property owners
for such relocated facilities sufficient to maintain service will be obtained by the
City. If a~quisition of easements or right-of-way is required to satisfy Company's
location requirements, the required easements or rights-of-way will be obtained
by the Company from private property owners. The cost of removal or relocation
of its facilities for public projects shall be paid by the Company. When the City
requires the Company to relocate the same facilities that were previously
relocated pn another public works project that was completed within the past two
years, the cost will be borne by the City. This provision shall apply only to fully
completed projects, and shall not apply to phases of the same project and minor
relocation work.
C. Overhead to Underground Conversion. As permitted by law, administrative rule,
or regulation, the City may require the Company to remove any overhead
facilities and replace those facilities within underground facilities at the same or
different locations. Both parties will, to the greatest possible extent, agree on a
relocation plan that provides for a suitable location. In the event of a
disagreement regarding suitable location, the City's determination shall be final
subject to state law and regulations including, but not limited to, the National
Electrical Safety Code. If the City's determination of a location requires the
acquisition of easements or right-of way, the required easements or right-of way
from private property will be obtained by the City. If acquisition of easements or
right-of-way is required to satisfy Company's location requirements, the required
easements or rights-of-way will be obtained by the Company from private
property owners. The expense of such a conversion shall be paid by the Company
subject to OAR 860-022-0046 and the conversion itself shall be accomplished in
the manner described by the rules of the OPUC. The Company shall collect
conversion costs in accordance with OPUC rules. Nothing in this paragraph
prevents the City and the Company from agreeing to a different form of cost
recovery on a case-by-case basis.
D. Notice Required. Except in an emergency, the Company shall provide not less
than forty-eight (48) business day hours notice to the City Engineer prior to any
work by the Company which involves excavation In the public right-of-way or
relocation of Company facilities. The Company shall exercise all reasonable
efforts to provide advance notice of such work so as not to disrupt City services or
any other person using the right-of-way and to enable the City to inspect the
work.
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E.
Company to Minimize Disruptions. Whenever work is performed in any public
right-of-way, the Company shall take all reasonable precautions to minimize
interrupti~n to traffic flow, damage to property or creation of a hazardous
condition.!
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Restoratidn Required. When the Company makes any excavation or installation
pursuant to this ordinance, the Company or its contractors shall restore the
affected nublic right-of-way to the same condition which it was in prior to the
excavatio~. All work done shall be subject to the reasonable rejection or
correctio~ requirements of the City Engineer and subject to the City Engineer's
approval. I If the Company fails to promptly restore the affected portion of the
public right-of-way, the City may restore the right-of-way and charge all costs to
the Company. If the Company inadequately restores the right-of-way, the City
may repair the restored area to correct the defect and charge the cost to the
Company, provided that the City gives the Company notice of the defect and ten
(lO) days opportunity to correct the defect. All excavation and restoration work
shall be done in strict compliance with applicable rules, permits issued,
regulations, ordinances or orders of the City and other applicable laws and
regulations which may be adopted from time to time during the continuance of
this Franchise by the City Councilor as may otherwise be provided by law.
Section 6 - Public Facilities and Improvements
A. All Company facilities shall be placed so that they do not interfere with the use by
the City or the public of any public right-of-way and in accordance with any
requirements adopted by the City Council. Nothing in this ordinance shall be
construed to prevent the City from severing, grading, paving, planking, repairing,
widening, altering or doing any work that may be desirable on or in any public
right-of-way. If possible, all such work shall be done so as not to obstruct, injure
or prevent free use and operation of the electric light and power system of the
Company.
B. Whenever the City performs or contracts for work in the right-of-way that may
disturb but does not require the relocation of Company facilities, the City shall
take reasonable measures to notify the Company in advance to enable Company
to take measures to protect its facilities from damage or injury to the public. In
such case, the Company shall furnish field marking to the City or contractor
showing the approximate location of all of its facilities in the area involved in the
construction.
C. If space is available, the Company shall permit the City to run wires on Company
poles or conduit for municipal purposes and to attach city alarms and police
signals to Company poles, subject to the following conditions:
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1. SJch wires and signals shall be strung so as not to interfere with the wires
of the Company and to conform to the provisions of the National
El~ctrical Safety Code and any other applicable building code. City shall
supmit applications for permits for such attachments;
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2. Tlle City shall not lease or sell space on Company poles or conduit to third
pahies, or in its facilities attached to Company poles or in conduit. The
City may provide space in its facilities at no charge to entities using such
space for a public purpose as long as such entities' use will cause no
adPitional burden to Company poles or conduit or require any separate
at~achment on or space in Company poles or conduit; and
3. To the degree permitted by Oregon Law, the City shall defend, indemnify
and hold the Company harmless from loss or damage resulting from
damage to persons or property or injury or death to City employees,
Company employees, or the public arising from the use of said poles by
the City.
D. The Company shall by permit allow the City to attach banners or other civic
beautification or information items to poles of the Company subject to the
following:
1. The attachments shall not interfere with the wires of the Company and
shall conform to the provisions of the National Electric Safety Code and
any other applicable Federal, State or PUC regulation. The Company may
regulate the location of such attachment or may deny requests for such
attachments on a case-by-case basis if the attachment would violate the
requirement of this subsection. In addition, all such attachments shall be
in accordance with PGE's banners and attachments policy; and
2. To the degree permitted by Oregon Law, the City shall defend, indemnify
and hold the Company harmless from loss or damage resulting from
damage to persons or property or injury or death to City employees,
Company employees, or the public arising from the use of said poles by
the City. The City shall maintain general liability insurance in the amount
of at least $1,000,000; which shall name the Company as an additional
insured, during use of the poles by the City pursuant to Sections 6 (c) and
(d).
Section 7 - Continuous Service: Safety Standards
A. The Company shall furnish adequate and safe service for the distribution of
electrical energy in the City. The Company shall use due diligence to maintain
continuous 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 the State.
Under no, circumstances shall the Company be liable for an interruption or failure
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of service caused by an act of God, unavoidable accident, or other circumstances
beyond th~ control ofthe Company.
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B. The Company shall comply with all the applicable rules and regulations of the
OPUc. '
Section 8 - Acceptance of Franchise Fees
The rights and privileges granted by this Franchise are granted upon the conditions herein
contained and alsp upon the following conditions:
A. PGE shall, within thirty (30) days from the effective date of this ordinance, file
with the City Recorder its written acceptance of this Franchise (Exhibit "A".
Acceptance of Franchise), subject to all the terms and conditions of this
Franchise. If Company has not unconditionally accepted this ordinance within the
above noted acceptance period, this ordinance shall become void.
B. In consideration of the rights and privileges granted by this Franchise, the
Company shall pay to the City a franchise fee each calendar year during the life of
this Franchise of three and one-half (3-112) percent of the gross revenue as
defined herein for the immediately preceding calendar year. If the Company pays
a franchise fee of more than 3.5% to another municipal corporation or the OPUC
permits the Company to pay any municipality a percentage rate of compensation
exceeding that provided for herein as an operating expense of the Company, the
Company shall inform the City. The City shall have the right to immediately
require and receive the same percentage fee permitted by the OPUC or paid by the
Company to another municipal corporation.
C. In consideration of the agreement of the Company to make such payments, the
City agrees that no license, permit fee, tax or charge on the business or occupation
of the Company shall be imposed upon the Company by the City during the term
of this ordinance, except:
I. This provision shall not exempt the property of the Company from lawful
ad valorem taxes, local improvement district assessments, or conditions,
exactions, fees and charges which are generally applicable to the
Company's real property, use or development as required by the City's
ordinances and regulations.
2. The City shall retain the power to impose a privilege tax on the Company
as permitted by Oregon law, so long as the combined franchise fee and
privilege tax assessed against the Company does not exceed five (5)
p~rcent of the Company's gross revenue from within the City as defined in
t111s ordinance. If the City decides to enact a privilege tax, the City shall
p~ovide the Company with sixty (60) days notice prior to the effective date
ot the ordinance enacting the tax.
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D. On or bef~re the first day of March of each year during the term of this Franchise,
beginningl in 2003, the Company shall file with the City Recorder a statement
under oat~ showing the amount of gross revenue of the Company within the City
on the b~sis outlined in paragraph (B) for the calendar year immediately
preceding! the year in which the statement is filed. The annual franchise fee (and
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any privil~ge tax that may be assessed) for the year in which the statement is filed
shall be computed on the gross revenue so reported. Such franchise fee (and any
privilege tax that may be assessed) shall be payable annually on or before the first
day of ARril, beginning in 2003. Any privilege tax enacted by the City shall be
paid by the Company to the City beginning with the annual payment following
enactment of the tax. The City Recorder shall issue a receipt for such annual
payment, which shall be the full acquittance of the Company for the payment.
Any dispute as to the amount of the Company's gross revenue within the meaning
of this orpinance shall be resolved by the Public Utility Commission of Oregon
after examination of the Company's records. Any difference of payment due the
City through error or otherwise shall be payable within fifteen (15) days of
written notice of discovery of such error. If the Company fails to pay any part of
the annual payment for thirty (30) days after such payment is due pursuant to this
ordinance, and after thirty (30) days written notice from the City, the City may
either continue this Franchise in force and/or proceed by suit or action to collect
said payment or declare a forfeiture of this Franchise because of the failure to
make such payment but without waiving the right to collect earned franchise
payments. Any overpayment to the City through error or otherwise shall be offset
against the next payment to the City.
E. The City may, consistent with state law and regulations, direct that the franchise
fee and privilege tax, be calculated on volume-based methodologies as
specifically described in ORS 221.655 instead of the gross revenue formula set
out in Section 8 (B). Notice must be given to the Company in writing, by October
30th of each calendar year for implementation of volume-based methodology
beginning January 1 st of the following year. The volumetric calculation must
remain in effect for an entire calendar year (January 1 to December 31 billings).
No notice is necessary if the City chooses to remain on the gross revenue-based
calculation.
F. The City reserves the right to cancel this Franchise at any time upon one year's
written notice to the Company in the event that the City decides to engage in
public ownership of light and power facilities and the public distribution of
electric energy.
G. The Company shall not unjustly discriminate or grant undue preference to any
users of the services provided by the Company pursuant to this Franchise.
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Section 9 - Franbhise Non-Transferable
A. No Tran~fer Without Consent. This Franchise may not be sold, assigned,
transferre~, leased, or disposed of, either in whole or in part, either by involuntary
sale or by: voluntary sale, merger, consolidation, nor shall title thereto, either legal
or equita~le, or any right, interest, or property therein pass to or vest in any
person, nbr may actual working control of the City be changed, transferred or
acquired Without the prior written consent of the City, which consent shall not be
unreason~bly withheld.
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B. Notification. The Company shall promptly notify the City of any proposed
change in, or transfer of, or acquisition by any other party of control of the
Company.
C. Request for Approval. The Company shall make a written request to the City for
its approval of a sale or transfer of this Franchise and furnish all information
required by law and the City.
D. City Inquiry into Qualifications. In reviewing a request for sale or transfer of this
Franchise, the City may inquire into the legal, technical and financial
qualifications of the prospective transferee, and Company shall assist the City in
so inquiring. The City may condition said sale or transfer of this Franchise upon
reasonable terms and conditions related to the legal, technical, and financial
qualifications of the prospective transferee.
E. Filing Evidence of Transfer. Within thirty (30) days of any transfer or sale of this
Franchise, if approved or deemed granted by the City, Company shall file with the
City a copy of the deed, agreement, lease or other written instrument evidencing
such sale or transfer of ownership or control, certified and sworn to as correct by
City and the transferee.
F. Approval Not Waiver. The consent or approval of the City to any transfer by the
Company shall not constitute a waiver or release of any rights of the City, and any
transfer shall, by its terms, be expressly subordinate to the terms and conditions of
this Franchise.
G. Exceptions. Notwithstanding anything to the contrary in this Section, the prior
approval of the City shall not be required for any sale, assignment or transfer of
the Franchise to an entity controlling, controlled by or under the same common
control as Company provided that the proposed assignee or transferee must show
financial responsibility as may be determined necessary by the City and must
agree in "Yriting to comply with all provisions of the Franchise.
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Section 10 - Codtinuity of Service Mandatory
A. As long ~ the City is included in the service territory allocated to the Company
by the Ot' gon Public Utility Commission ("OPUC") pursuant to ORS 758.400 et
seq., the lompany shall provide electric service to customers within the corporate
limits oft e City in accordance with state statutes and regulations.
B. In the ev4nt of purchase, lease-purchase, condemnation, acquisition, taking over
and holdipg of plant and equipment, sale, lease or other transfer to any other
person, i~cluding any other Grantee of an Electric Light and Power System
Franchise~ the Company shall cooperate with the City andsuch person or other
Grantee to make sure that customers within the corporate limits of the City
continue to receive electric service during any period of transition.
Section 11 - Books of Account and Reports
The Company shall keep and maintain accurate books of account at an office in Oregon
for the purpose of determining the amounts due to the City pursuant to Section 8 of this
ordinance. The City may inspect the books of account, including computer retrieval
information, at any time during the Company's business hours and audit the books from
time to time. The City Council may require periodic reports from the company relating
to its operation and revenues within the City.
Section 12 - Utility Rates Set by the OPUC
The rates charged by the Company for electric energy shall be as fixed or approved by
the OPUC.
Section 13 - Changes in Statutes or Rules
If the State of Oregon or the OPUC amends or adopts a state statute or administrative rule
that would affect a material term, condition, right or obligation under this Franchise,
either party may reopen Franchise negotiations with regard to such term, condition, right
or obligation in order to address the change required or allowed by the new or amended
state statute or administrative rule.
Section 14 - Indemnification
The Company shall indemnify, defend and save harmless the City and its officers, agents
and employees from any and all loss, cost and expense, including reasonable attorneys
fees, arising from damage to property and/or injury or death of persons or any other
damage resulting in whole or in part from any wrongful or negligent act or omission of
the Company, its agents or employees in exercising the rights, privileges and franchise
hereby granted.
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Section 15 - InsJrance
Company shall b~ self-insured for any tort liability for the first $2 million of coverage or
maintain an equitalent insurance policy. Beyond the $2 million retention, Company shall
maintain liabilitYI coverage in excess of $2 million for bodily injury and property damage,
including liabilitl' assumed under contract.
Section 16 - Fra~chise Nonexclusive
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This Franchise s~all not be exclusive and shall not be construed as any limitation on the
City to grant rig*s, privileges and authority to other persons or corporations similar to or
different from thC)se herein set forth.
Section 17 - RigJlts not to be Construed as Enhancement to Company Property
The City and t~e Company understand and agree that the privileges granted to the
Company by this Franchise in the streets, alleys, roads and other public places of the City
are not to operate so as to be an enhancement of the Company's properties or values or to
be an asset or item of ownership in any appraisal thereof.
Section 18 - Remedies and Penalties not Exclusive
All remedies and penalties under this ordinance, including termination of the Franchise,
are cumulative and not exclusive. Failure to enforce shall not be construed as a waiver of
a breach of this Franchise. A specific waiver shall not be construed to be a waiver of a
future breach or of any other term or condition of this Franchise.
Section 19 - Severability Clause
If any portion of this ordinance is deemed unlawful or void by a Court or regulatory body
of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this ordinance.
Section 20 - Prior Ordinance Repealed
Ordinance No. 2109 is hereby repealed, and upon acceptance by the Company of this
Franchise, all rights and obligations arising under Ordinance No. 2109, as amended, shall
terminate.
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Approved as to form: ~
City Attorney
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Recorder
ATTEST: 1J1,.,~,~ ~
~t City Recorder
City of Woodburn, Oregon
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2003
January 28, 2003
January 29, 2003
January 29, 2003
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