Chapter 13.40
UTILITY FRANCHISES
Sections:
13.40.040 Franchise expiration.
13.40.050 Report of gross earnings.
13.40.060 Payment, penalty and interest.
13.40.010 Franchise required.
A. All persons, firms, co-partnerships, associations, corporations, districts, people’s utility districts operating a utility as herein defined within the corporate limits of the city of Rainier, shall obtain a franchise regulating use of city streets and rights-of-way.
B. Any utility desiring to operate within the corporate limits of the city shall apply to the city council for a franchise to do so.
C. If any utility operates unregulated upon the streets and rights-of-way within the corporate limits of the city without a franchise, the city council may take action to refuse to allow such utility the use of said city streets and rights-of-way. (Ord. 880 § 1, 1985)
13.40.020 Definitions.
A. “Gross revenue” as used in this chapter shall be deemed to include any revenue earned within the city from the sale of utility services after adjustment, the net write-off of uncollectible accounts computed on the average annual rate for the entire utility, and excluding sales of utility services by the utility to any other utility when the utility purchasing such utility services is not the ultimate customer.
B. A “public utility” as defined herein is any individual, partnership, cooperative, corporation, people’s utility district, or government agency buying utility services and distributing such utility services to other customers or users. (Ord. 880 § 2, 1985)
13.40.030 Privilege tax.
Any utility using and/or occupying and continuing to use and/or occupy the whole or any part of the streets, avenues, lanes, alleys, public highways, public grounds, or public places within the corporate limits of the city without a franchise agreement shall pay a privilege tax for the use and occupancy of the whole or any part of the streets, avenues, lanes, alleys, public highways, public grounds, or public places within the corporate limits of the city. A privilege tax shall be in the amount of 3.5 percent of the gross revenue earned by the utility every month within the corporate limits of the city. The privilege tax shall be computed as of the commencement of business, or upon the expiration of any franchise agreement under which the utility might formerly have operated and shall be due and payable as hereinafter provided so long as the utility continues to operate within the city and to use and/or occupy the whole or any part of the streets, avenues, lanes, alleys, public highways, public grounds, or public places without a franchise. In the event a franchise is granted to any utility that is subject to the privilege tax herein required, then the franchise becomes effective, and then the privilege tax shall cease to apply from the fee date of the franchise. But, the franchise agreement holder shall pay the proportionate earned amount of the privilege tax for that period. The privilege tax shall in such cases become immediately due and payable. In the event that any such utility shall operate under a permit granted by the city council and accepted in writing by it, there shall be no privilege tax applicable under this section. (Ord. 880 § 3, 1985)
13.40.040 Franchise expiration.
The fee herein required shall immediately apply and continue to apply to all utilities using and/or occupying and continuing to use and/or occupy the whole or any part of the streets, avenues, lanes, alleys, public highways, public grounds, or public places within the corporate limits where the utilities franchise to so operate expires and no new franchise shall have been granted and become in full force and effect. (Ord. 880 § 4, 1985)
13.40.050 Report of gross earnings.
A. Each utility subject to the privilege tax provided for in RMC 13.40.030 shall file with the city recorder a statement verified under oath of the utility’s gross revenues earned within the boundary of the city for each three month period. The first quarterly report shall be filed on or before August 15, 1985. Subsequent quarterly reports shall be filed on or before July 15th, October 15th, January 15th, and April 15th of each year, and as long as the utility operates without a franchise. In the event a franchise is granted to any utility that is subject to the privilege tax herein required and the franchise becomes effective, then a report shall be filed within 10 days after the franchise becomes effective showing the gross revenues earned for the proportionate period of the quarter in which the franchise is granted.
B. If controversy arises as to the amount of gross revenue within the meaning of this chapter, the amount of such gross revenue as determined by the Public Utility Commissioner of Oregon after examination of the utilities records, shall be deemed the correct amount. A difference of payment due, either the city or the utility, through error or otherwise shall be payable within 15 days of the discovery of such error. (Ord. 880 § 5, 1985)
13.40.060 Payment, penalty and interest.
The first payment for operations from the commencement of utility service within the city through August 1, 1985, shall be made on or before August 20, 1985. Payments shall be made quarterly on or before July 20th, October 20th, January 20th, and April 20th of each year. In the event the utility fails to pay the privilege tax within the times fixed, the city recorder shall notify the city attorney of such fact, and the city attorney is authorized to and shall institute an action in the Circuit Court of the state of Oregon for Columbia County against the utility to recover the amount of the privilege tax due the city. Interest shall be charged and collected on any taxes not paid when due, at the rate of one percent per month or fraction of a month until paid. (Ord. 880 § 6, 1985)
13.40.070 Retroactivity.
It is the express intent of the city council that this chapter apply retroactively to any utility that begins its operations creating gross revenues prior to the effective date of the ordinance codified in this chapter to accomplish uniformity of taxation among utilities in the city. The privilege tax shall apply to any utility operating without franchise from the commencement of utility service within the city. (Ord. 880 § 8, 1985)