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12.15.080 Licenses.

Label: City code section

(Amended by Ordinance 192006, effective January 10, 2025.)

  1. A.  License required.
    1. 1.  Except those utility operators with a valid franchise agreement from the City, every person will obtain a license from the City prior to installing any utility facility or conducting any other work in the right-of-way.
    2. 2.  Every utility operator as of the effective date of this Chapter will apply for a license from the City within 45 calendar days of the later of:
      1. a.  the effective date of this Chapter; or
      2. b.  the expiration of a valid franchise from the City, unless a new franchise is granted by the City pursuant to Subsection E of this Section.
    3. 3.  Every utility operator will provide a comprehensive map showing the location of all facilities within the City. Such map will be provided in a format acceptable to the City, with accompanying data sufficient enough for the City to determine the exact location of the facilities, such as Shapefile or Geodatabase format. Such map will not be required more than once per year and will be provided at no cost to the City.
  2. B.  License application. The license application will be on a form provided by the City and will be accompanied by any additional documents required, at the sole discretion of the City, at no cost to the City. Such documentation must allow the City to easily identify the applicant and its legal status, including its authorization to do business in Oregon, and include a description of the type of utility service provided or to be provided by the applicant, the facilities over which the utility service will be provided, and other information reasonably necessary to determine the applicant’s ability to comply with the terms of this Chapter.
  3. If any information in the license application changes, the applicant will submit an updated application within 30 calendar days of the change.
  4. C.  License application fee. The application will be accompanied by a nonrefundable application fee or deposit set by the City Council.
  5. D.  Determination by City. The City will issue, within a reasonable period of time, a written determination granting or denying the license in whole or in part. If the license is denied, the written determination will include the reasons for denial. The license application will be evaluated based upon the provisions of this Chapter, the continuing capacity of the right-of-way to accommodate the applicant’s proposed utility facilities, and the applicable local, state, and federal laws, rules, regulations, and policies.
  6. E.  Franchise agreements. If the public interest warrants, the City and utility operator may enter into a written franchise agreement (or a written interagency agreement if the utility operator is a City bureau), that includes terms that clarify, enhance, expand, waive, or vary from the provisions of this Chapter, consistent with applicable state and federal law. The franchise agreement may conflict with the terms of this Chapter only with the review and approval of the City Administrator. The interagency agreement may conflict with the terms of this Chapter only with the review and approval of the City Administrator. In the event of a conflict between the express provisions of such an agreement and provisions of this Chapter incorporated by reference therein, the terms of the agreement will control. A franchise application will be accompanied by a nonrefundable application fee or deposit set by the City Council.
  7. F.  Rights granted.
    1. 1.  The license will authorize the licensee, subject to the provisions of the City Code, including without limitation Portland City Code Title 17 and applicable provisions of state or federal law, to utilize, lease capacity, construct, place, maintain, and operate utility facilities in the right-of-way for the term of the license.
    2. 2.  Any license granted pursuant to this Chapter will not convey equitable or legal title in the right-of-way and may not be transferred or assigned, except as authorized in Subsection J. of this Section.
    3. 3.  Neither the issuance of the license nor any provisions contained in the license will constitute a waiver or bar to the exercise of any governmental right or power, including without limitation, the police power or regulatory power of the City, as it may exist at the time the license is issued or thereafter obtained.
  8. G.  Term.
    1. 1.  Subject to the termination provisions in Subsection M. of this Section, the license granted pursuant to this Chapter will be effective as of the first day of the quarter in which it was issued by the City.
    2. 2.  The license will have an initial term of one year with four automatic one-year renewals for a total term of five years. The term of the license will commence on the effective date of the license.
  9. H.  License nonexclusive. No license granted pursuant to this Section will confer any exclusive right, privilege, license, or franchise to occupy or use the right-of-way for delivery of utility services or any other purpose. The City expressly reserves the right to grant licenses, franchises, or other rights to other persons, as well as the City’s right to use the right-of-way, for similar or different purposes. The license is subject to all recorded deeds, easements, dedications, conditions, covenants, restrictions, encumbrances, and claims of title of record that may affect the right-of-way. Nothing in the license will be deemed to grant, convey, create, or vest in licensee a real property interest in land, including any fee, leasehold interest, or easement.
  10. I.  Multiple services.
    1. 1.  A licensee that provides or transmits or allows the provision or transmission of utility services and other services over its facilities is subject to the license and fee requirements of this Chapter for the portion of the facilities and extent of utility services delivered over those facilities, whether or not those facilities are owned by the utility operator. Nothing in this paragraph requires a licensee to pay the registration, license, or fee requirements owed to the City by a third party using the licensee’s facilities.
    2. 2.  A licensee that provides or transmits more than one utility service over its facilities is not required to obtain a separate license or franchise for each utility service, provided that it gives notice to the City of each utility service provided or transmitted and pays the applicable fees for each utility service.
  11. J.  Transfer or assignment. Unless exempted by applicable state and federal laws, the licensee will obtain the written consent of the City prior to the transfer or assignment of the license, which consent will not be unreasonably withheld, conditioned, or delayed. The license will not be transferred or assigned unless the proposed transferee or assignee is authorized under all applicable laws to own or operate the utility system and the transfer or assignment is approved by all agencies or organizations required or authorized under state or federal laws to approve such transfer or assignment. If a license is transferred or assigned, the transferee or assignee will become responsible for fulfilling all the obligations under the license. A transfer or assignment of a license does not extend the term of the license. The City’s granting of consent in one instance will not render unnecessary any subsequent consent in any other instance. No transfer or assignment may occur until the successor transferee has provided proof of insurance pursuant to Section 12.15.100.
  12. K.  Leases and sales of utility facilities.
    1. 1.  Leases. The licensee will obtain the written consent of the City prior to leasing any portion of, or capacity on, its utility facilities, which consent will not be unreasonably withheld, conditioned, or delayed. However, the licensee remains solely responsible for locating, servicing, repairing, relocating, or removing such portion of the utility facilities. A lessee of any portion of the licensee’s utility facilities will not obtain any rights under this Chapter and will be required to register pursuant to Section 12.15.070. Upon written request from the City, a licensee will provide to the City the name and business address of any lessees of its utility facilities. A licensee is not required to provide such information if disclosure is prohibited by applicable law. The licensee will take reasonable steps to ensure that its lessees are in full compliance with this Chapter.
    2. Notwithstanding the foregoing, wireless facilities may be leased without written consent from the City, provided that the licensee provides written notice of the lease no less than 30 days prior to the later of the effective date of the lease or the installation of the wireless facility. The licensee remains solely responsible and liable for the performance of all obligations under this Section and for all associated fees.
    3. 2.  Sales. A licensee may sell portions of its utility facilities in the ordinary course of its business, without otherwise obtaining the City’s written consent, so long as the licensee complies with the following conditions:
      1. a.  The sale is to the holder of a current and valid franchise, license, permit, or other similar right granted by the City;
      2. b.  Within 14 calendar days of the sale being executed and becoming final, the licensee will provide written notice to the City, describing the portions of the utility facilities sold by the licensee, identifying the purchaser of the utility facilities and the location of the utility facilities, and providing an executed counterpart or certified copy of the sales documents;
      3. c.  The licensee remains solely responsible for locating, servicing, repairing, relocating, or removing its remaining utility facilities; and
      4. d.  Within 14 calendar days of the sale being executed and becoming final, the purchaser of such utility facilities will file written notice to the City that it has assumed sole responsibility for locating, servicing, repairing, relocating, and removing the purchased utility facilities under the purchaser’s current and valid franchise, license, permit, or other similar right granted by the City. The purchaser will not obtain any of the licensee’s rights under this Chapter.
  13. L.  Renewal. At least 30 but no more than 120 calendar days prior to the expiration of a license granted pursuant to this Section, a licensee seeking renewal of its license will submit a license application to the City, including all information required in Subsection B. of this Section and the application fee required in Subsection C. of this Section. The City will review the application as required by Subsection D. of this Section and grant or deny the license within 90 calendar days, or such longer period as determined in the City’s sole discretion, of submission of the application. If the City determines that the licensee is in violation of the terms of this Chapter at the time it submits its application, the City may require that the licensee cure the violation(s) or submit a detailed plan to cure the violation(s) within a reasonable period of time, as determined in the City’s sole discretion, before the City will consider the application or grant the license. If the City requires the licensee to cure or submit a plan to cure a violation(s), the City will grant or deny the license application within 90 calendar days of confirming that the violation has been cured or of accepting the licensee’s plan to cure the violation. If the licensee does not complete its cure within the time designated in the plan or agreed extensions thereof, the City may deny the renewal and terminate the license. The termination process outlined in Subsections M. and N. of this Section to do not apply to such denial and termination.
  14. M.  Revocation or termination.
    1. 1.  Revocation or termination of a license. The City Administrator may revoke or terminate a license granted pursuant to this Chapter for any of the following reasons:
      1. a.  Violation of any of the provisions of this Chapter;
      2. b.  Violation of any provision of a license;
      3. c.  Misrepresentation in a license application;
      4. d.  Failure to pay taxes, compensation, fees, or costs due the City after final determination of the taxes, compensation, fees, or costs;
      5. e.  Failure to restore the right-of-way after construction as required by City Code or other applicable local or state laws, ordinances, rules, and regulations;
      6. f.  Failure to comply with technical, safety, or engineering standards related to work in the right-of-way;
      7. g.  Failure to obtain or maintain a license, permit, certification, or other authorization required by state or federal law for the use, placement, maintenance, or operation of a utility facility; or
      8. h.  A receiver or trustee is appointed to take over and conduct a licensee’s business, or a receivership, reorganization, insolvency, or other similar action or proceeding is initiated, unless the licensee or its receiver or trustee timely and fully performs all obligations, until such time as the license is either rejected or assumed by the licensee or its receiver or trustee.
    2. 2.  Standards for revocation or termination. In determining whether revocation, termination, or some other sanction is appropriate, the City Administrator will consider the following factors:
      1. a.  Whether the violation was intentional;
      2. b.  The egregiousness of the violation;
      3. c.  The harm that resulted;
      4. d.  The licensee’s history of compliance; and
      5. e.  The licensee’s cooperation in discovering, admitting, and curing the violation.
  15. N.  Notice and cure. The City will give the licensee written notice of any apparent violations before revoking or terminating a license. The notice will include a clear and concise statement of the nature and general facts of the violation and provide a reasonable time (no less than 20 and no more than 40 calendar days) for the licensee to demonstrate that the licensee has remained in compliance, that the licensee has cured or is in the process of curing any violation, or that it would be in the public interest to impose a penalty or sanction less than revocation or termination. If the licensee is in the process of curing a violation, the licensee must demonstrate that it acted promptly and continues to actively work on compliance. If the licensee does not respond, the City Administrator may determine whether the license will be revoked or terminated. If the licensee does not complete its cure within the time designated in the plan, the City may terminate the license.
    1. 1.  Violations of Subsection 12.15.090 A. will not be subject to notice by the City and cure by the licensee, and the City Administrator may immediately revoke or terminate a licensee’s license who expands or increases capacity to transport fossil fuels in violation of City Code and binding City policies.
  16. O.  Removal of utility facilities. If the City has revoked or terminated a license or if a license has expired without being renewed or extended or a license renewal has been denied, all the licensee’s rights under the license will immediately cease and be divested. Thereafter, except as otherwise provided in writing by the City Administrator, the licensee will obtain permits and other permissions and at its own expense remove its utility facilities from the right-of-way and restore the right-of-way to the standards provided in applicable regulations of the City.
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