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1. Why did the City of Beaverton implement a new rights of way ordinance?

In the past, the City has typically granted individually negotiated franchises to each utility using the City’s rights of way to provide utility service, which franchises set forth the terms of use and compensation to be paid for such use. In order to streamline the process the City determined that it would be more efficient to transition to registration and licensing model with consistent rights of way fees, standards and regulations.

2. What if my company has an active franchise agreement?

Under the ordinance those with existing franchising agreements would continue to operate under the terms set forth in the franchise agreement. Once the franchise agreement expires the utility company will come under the guidelines set forth in the ordinance.

3. Who does the ordinance apply to?

The ordinance applies to utility service providers of electricity, natural gas, communication services, cable services, water, sewer or storm sewer who are providing service to citizens of Beaverton or have facilities within the City’s rights of way. Regardless of whether or not facilities are owned by the service provider utility, companies or agencies will need abide by the ordinance.

4. What is the difference between the annual registration and the 5-yr license?

Any company providing utility service to customers will require an annual registration regardless if the utility service provider owns the facilities within the City’s rights of way. The registration fee is $100.
Any company that owns or controls utility facilities within the rights of way will also require a 5-year license. The license fee is $150. A company, agency or special district that both owns utility facilities and provides services much obtain both a license and register annually with the City.

5. What is the rights of way fee?

Annual Rights of Way Fees for electric, natural gas, communications, water, sanitary sewer, and storm sewer services are 5% of gross revenue.
Any Utility Operator that does not earn gross revenue within the City pays $3.50 per linear foot of Utility Facilities in the Rights of Way (as these terms are defined in Section 4.15.050) or a minimum fee of $5,000, whichever is greater. The per-linear-foot fee and the minimum fee shall increase 3% annually on January 1st of each year, beginning January 1, 2018..

6. How is gross revenue defined?

Gross revenue means any and all revenue, of any kind, nature or form, without deduction for expense, less net uncollectibles, derived from the operation of utility facilities in the City of Beaverton, subject to all applicable limitation in federal or state law.

7. What is an attachment fee?

A utility operator whose only facilities in the rights of way are facilities mounted on structures within the rights of way, which structures are owned by another person, and with no facilities strung between such structures or otherwise within, under or above the rights of way, shall pay the attachment fee.
The attachment fee is annual payment of $5,000 per attachment.

8. What are the important dates to remember?

Starting the first business day of October utility providers can apply online for their license and registration and will have until November 15 to do so. It is important to note, that if you do not have a valid license and/or registration, right of way permits will not be granted. Starting October 1, 2016 the City will begin assessing rights of way fees consisting of either quarterly payments of 5% of gross revenue, or the $3.50 per linear foot rate. The first quarterly payment is due for the period ending December 31, 2016 no later than January 31, 2017.

9. Where can I find a copy of the ordinance and fee resolution?

See the following documents:
Ordinance
Fee Resolution