As used in this chapter, unless the context
requires otherwise, “city” means any incorporated city or town.
(1) When the power to do so is conferred
by or contained in its charter or act of incorporation, any city may
build, own, operate and maintain waterworks, water systems, railways and
railroads, electric light and power plants, within and without its
boundaries for the benefit and use of its inhabitants and for profit. To
that end it may:
(a) Acquire water systems and use, sell and dispose of its water
for domestic, recreational, industrial, and public use and for irrigation
and other purposes within and without its boundaries.
(b) Build, acquire, own and operate railways operated by steam,
electric or other power within and without its boundaries and running
from such city to other towns, cities and points without its boundaries.
(c) Acquire right of way, easements or real property within and
without its boundaries for any such purpose.
(2) In exercising such powers, any city may bring actions for the
condemnation or taking of private property for public use in the same
manner as private corporations are now authorized or permitted by law to
do. [Amended by 1967 c.306 §1] Any city
owning, controlling or operating a system of waterworks or electric light
and power system for supplying water or electricity for its inhabitants
and for general municipal purposes, and any person controlling or
operating any water system or electric light and power system under
contract, lease or private ownership, may sell, supply and dispose of
water or electricity from such system to any person within or without the
limits of the city in which the water or electric light and power system
is operated, and may make contracts in reference to the sale and disposal
of water or electricity from such system, for use within or without the
corporate limits. [Amended by 2005 c.22 §167] All contracts or
agreements made prior to May 20, 1911, and in effect as of that date, for
sale and disposal of water or electricity by any city or person
operating, controlling or owning water or electric light and power
systems, to any person within or without the limits of the city in which
the system is operated, are ratified and declared legal and valid
contracts in so far as the right of the city to contract with reference
to same is concerned. [Amended by 2005 c.22 §168](1) Any or all cities may construct, own or operate
jointly, in such proportion as they may agree, waterworks and water
pipelines, water rights and water.
(2) For the purposes of subsection (1) of this section, the cities
may:
(a) Purchase, own, hold, appropriate and condemn land, rights of
way, water or water rights in their own names or in the name of a joint
or other commission or agency.
(b) Purchase one from the other or others waterworks, water
pipelines, water rights or water or any interest therein or in either of
them.
(c) Provide joint or other commissions or agencies for
construction, operation or control of the matters listed in this section.
(d) Issue, sell or otherwise dispose of bonds or other securities
of the city for the purpose of carrying out any of the provisions of this
section.(1) Whenever authorized by their charter or
incorporation law, cities and other municipal corporations may, either
severally or in joint agreement, purchase, own, operate and maintain any
works in an adjoining state necessary or pertinent to the furnishing of
water supply or electric power, or both, for the benefit and use of their
inhabitants and for profit, in so far as authorized and permitted by the
laws of the adjoining state.
(2) For the purposes stated in subsection (1) of this section, and
subject to its limitations, cities and other municipal corporations may
purchase, own, appropriate and condemn land, rights of way, and water or
water rights or both.
(3) Cities and other municipal corporations may also issue, sell
and otherwise dispose of their bonds or other securities for the purposes
of this section.
The governing body of any city may contract with and permit the United
States of America to use for military purposes within or without the
boundaries of such city the surplus waters thereof and such use shall be
deemed to be for municipal purposes.(1) In order to finance the cost of installing any
improvement for waterworks or water systems authorized by ORS 225.020, a
city council may provide for and make a local assessment for benefits,
for all or part of the cost of such construction, against any and all
property whether within or without the city or partially within or
partially without the city and enforce collection of such assessments. An
assessment shall not be levied under this section against property
located outside the city, however, unless the governing body of the
county where such property is located, by resolution, approved the
assessment of the property to be assessed.
(2) ORS 224.010 to 224.170, applying to assessments for
construction of sewer systems, apply to assessments authorized by this
section. [1971 c.269 §2]Notwithstanding any other law, the City of Klamath Falls,
acting solely in connection with the ownership and operation of the
Klamath Cogeneration Project, may enter into transactions with other
persons or entities for the production, supply or delivery of electricity
or fuel on an economic, dependable and cost-effective basis, including
financial products contracts and other service contracts that reduce the
risk of economic losses in the transactions. This section does not
authorize any transaction that:
(1) Constitutes the investment of surplus funds for the purpose of
receiving interest or other earnings from the investment; or
(2) Is intended or useful for any purpose other than the
production, supply or delivery of electricity or fuel on a cost-effective
basis. [1999 c.683 §2]Note: 225.085 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 225 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.TELEPHONE SYSTEMWhen authorized by its charter or act of
incorporation, a city may purchase, build, own, operate and maintain
telephone or telegraph systems within or without its boundaries, for the
benefit and use of its inhabitants at cost or for profit. [Amended by
2005 c.22 §169] For the purposes
of ORS 225.110, a city may interconnect by agreement or otherwise with
other public or private telephone systems and conduct both a local and
long distance telephone business or it may cooperate with the state at
any time that the state undertakes to handle the long distance telephone
service for its cities, telephone districts or both. For any of the purposes of ORS
225.110 and 225.120, a city may acquire rights of way, easements and real
property within or without its boundaries.
Except as provided in ORS 225.150 and 225.160, in exercising the powers
granted by ORS 225.110 to 225.130, a city may bring actions for
condemnation or taking of any private property necessary for such public
use, in the manner provided or permitted by law for private corporations,
notwithstanding that the property may already be devoted to a public use. The city shall pay compensation by deposit in
court of an order drawn on the city treasurer for the amount of
compensation fixed by the court in the condemnation proceeding. In lieu of proceeding
under ORS 225.140, a city may elect to proceed with condemnation in the
manner provided by law for condemnation of land for highway or other
purposes by this state.MUNICIPAL LIGHT AND POWER SYSTEM Each city which owns and
operates an electric light and power system or which distributes electric
energy for hire, shall charge such rates therefor as meet the
requirements of ORS 225.220 to 225.300. (1) The requirements
of ORS 225.210 to 225.300 shall be enforced and observed by that officer
who by the charter is charged with the administration of any electric
light and power plant or distributing system owned or operated by the
city.
(2) As used in this section, “officer” includes board or other
public authority of the city.
(1) The officer referred to in ORS 225.220 shall annually before January
1, make a written estimate of the probable expense of maintaining and
conducting the electric light plant or distributing system during the
next ensuing year, including the cost of any contemplated alterations,
improvements, additions or extensions, together with the probable amount
necessary for redemption of any unpaid warrants and the interest thereon,
as well as the amount required for payment of interest and maturing
principal on any outstanding bonds of the city issued for or in
connection with any such electric light plant or distributing system.
(2) The officer shall thereupon ascertain and prescribe as near as
can conveniently be done an electric current rate or rates for the
ensuing year which will create a fund sufficient to meet all requirements
in subsection (1) of this section.
(3) The officer may also include a further amount sufficient to
create such fund, as in the judgment of the officer may be desirable or
necessary to meet requirements of future contemplated additions,
improvements or extensions to the plant or system. The officer referred to
in ORS 225.220 shall be the sole judge of what rates or charges shall be
exacted for the electric current furnished for use of street lighting and
other public purposes for the city. The earnings of the electric plant
or distributing system shall be applied and used in payment of warrants
and interest thereon issued in connection with operation of any such
plant or system, and also in payment for alterations, improvements,
additions or extensions and for redemption and retirement of outstanding
bonds, together with interest thereon, and shall be expended only in
connection with and for improving such plant or system and not for other
municipal purposes, except as otherwise provided in ORS 225.270. The proceeds of bond issues
issued after June 6, 1931, by authority of charter provisions of the city
for the purpose of creating, acquiring, building, improving, enlarging,
altering or repairing the plant or system referred to by ORS 225.210
shall be used exclusively for the purposes for which such bonds were
authorized and issued. When any city which owns or
operates a municipal electric power plant or system or distributing
system, has paid principal and interest to date on all indebtedness
incurred in connection therewith, and has created and accumulated an
adequate depreciation and replacement reserve in the judgment of the
officer having control of such plant or system, the city shall, for the
purpose of reducing general property taxes within such city, pay to
itself not less than three percent of the annual gross operating revenue
of such plant or system, or a volumetric charge based upon the amounts of
electricity delivered, transmitted or distributed to retail electricity
consumers regardless of the source. The volumetric charge shall not be
less than the equivalent of three percent of the gross operating revenues
of the municipality utility in 1999. The city shall adjust a volumetric
charge to end users such that charges established for different customer
classes bear the same approximate relationship as the gross revenues per
kilowatt hour paid by the classes in 1999. [Amended by 1999 c.865 §32] (1)
When authorized by the city charter, the officer referred to in ORS
225.220 as having charge of the electric plant or distributing system may
execute its warrants upon the city treasurer, drawn against the funds
created by and for the benefit of such plant or system in excess of the
current cash on hand but not in an amount exceeding one-half of the
estimated annual income for the next ensuing year, from such plant or
system. The estimate of annual income shall be made by the officer
referred to in ORS 225.220.
(2) Warrants so drawn in excess of the cash on hand in any such
fund shall be stamped “Not Paid for Want of Funds” by the city treasurer,
shall bear the legal interest from the date of such indorsement until the
date of payment and shall be paid from the current receipts of the plant
or system. The warrant indebtedness shall not be considered or construed
to be within the charter limitations respecting any municipal debt.
(3) Warrants issued pursuant to this section shall be retired in
the order of their presentation for indorsement “Not Paid for Want of
Funds” as funds are available. Any city which is
authorized by its charter or by law to construct, acquire, maintain or
operate an electric generating plant or distributing system may acquire
in its own name the right to use the unappropriated waters of this state
in accordance with laws of this state. [Amended by 1955 c.707 §32]Any filing made by any city upon the
unappropriated waters of this state for use in the future development of
a hydroelectric plant by such city shall be reserved to such city and
shall not be subject to appropriation by any other person, municipality
or corporation unless it is judicially determined that the filing exceeds
the reasonable present and future requirements of such city. In that
event the surplus or excess may, by judgment of a court of competent
jurisdiction, be released and discharged from the filing. Proceedings in
court for the determination of whether or not the filing by any city
exceeds its reasonable present and future requirements may be instituted
by the State of Oregon, by the Water Resources Commission in the name of
and for the State of Oregon, or by any other applicant for the right to
use the waters involved. [Amended by 1955 c.707 §33; 2003 c.576 §400]IRRIGATION AND FIRE PROTECTION SYSTEM As used in ORS
225.310 to 225.400, unless the context requires otherwise, “facilities”
means a water supply for irrigation and for fire protection of property
within the city together with a distribution system therefor, reservoirs,
pumps, mains, stations, with all appurtenances necessary, useful or
convenient for the treatment, storage and distribution of water supply.Any city may own, acquire, construct, equip, operate and
maintain within or without its statutory or corporate limits, in whole or
in part, facilities for irrigation and fire protection. (1) For the
purposes of ORS 225.320, the city may acquire by gift, grant, purchase or
condemnation necessary lands and rights of way within or without its
statutory or corporate limits.
(2) For the purpose of acquiring property under subsection (1) of
this section, the city may invoke and shall have the rights, powers and
privileges granted public corporations by laws pertaining to this subject. The city governing body may establish just
and equitable rates or charges to be paid for the use of the irrigation
and fire protection facilities by each person, firm or corporation whose
premises are served thereby, or upon subsequent service thereto. If the service
charges established under ORS 225.340 are not paid when due, the amounts
thereof, together with such penalties, interests and costs as may be
provided by the city governing body, may be recovered in an action at
law. [Amended by 1991 c.459 §354] For the purposes of
ORS 225.320, the city governing body may, after referring the question of
acquiring and constructing the facilities to a vote of the electors of
the city and after approval thereof by a majority of the electors,
authorize the issuance of and cause to be issued bonds of the city for
such purposes, either general obligation, limited obligation or
self-liquidating in character, in a sum not more than the amount
authorized at such election and subject to the provisions of ORS 225.370
and 225.380. Bonds so authorized and issued may provide for payment of
both principal and interest thereon from service charges to be imposed by
the city governing body for services to be extended and through
employment and use of the irrigation and fire protection facilities. If
service charges are imposed to be so paid, such portion thereof as may be
deemed sufficient shall be set aside as a sinking fund for payment of
interest on the bonds and the principal thereof at maturity. The city
governing body may determine the maturities and tenor of bonds issued
under ORS 225.360. However, the bonds shall be serial in character and in
accordance with any provisions of law or charter. The bonds shall:
(1) Be payable in not to exceed 30 years from the date of issuance
thereof.
(2) Be sold at a price to net the city not less than the par value
thereof with accrued interest.
(3) Bear interest at not to exceed six percent per annum. [Amended
by 2005 c.22 §170] The amount of any
self-liquidating bonds issued under ORS 225.360 shall not be within any
limitation of indebtedness fixed by law or charter, but shall be in
addition to the amount of the bonds within the limitation. However, the
aggregate of the bonds, after deducting sinking funds applicable to
payment of principal of the bonds, shall not exceed two and one-half
percent of the latest real market value of the issuing city. [Amended by
1967 c.293 §27; 1981 c.804 §74; 1991 c.459 §355] Before calling any
election for the purposes set forth in ORS 225.360, the city governing
body shall cause to be prepared plans, specifications and estimates of
costs of any proposed facilities to be voted upon, which may be examined
by any elector of the city. The authority given by ORS
225.310 to 225.390 shall be in addition to and not in derogation of any
power existing in any city under any constitutional, statutory or charter
provisions.MUNICIPAL OWNERSHIP OF POWER FACILITIES As used in ORS
225.450 to 225.490, unless the context requires otherwise:
(1) “City” means a city organized under the law of California,
Colorado, Idaho, Montana, Nevada, Oregon, Washington or Wyoming and
owning and operating an electric light and power system.
(2) “Common facilities” means any works and facilities necessary or
incidental to the generation, transmission, distribution or marketing of
electric power and related goods and commodities.
(3) “District” means a people’s utility district organized under
ORS chapter 261 or a similar public utility district organized under the
law of California, Colorado, Idaho, Montana, Nevada, Washington or
Wyoming.
(4) “Electric cooperative” means a cooperative corporation
organized under the law of California, Colorado, Idaho, Oregon, Montana,
Nevada, Washington or Wyoming and owning and operating an electric
generation, transmission or distribution system. [1967 c.603 §2; 1979
c.151 §1; 1993 c.141 §1; 1999 c.865 §34] (1) The Legislative Assembly finds and declares it
to be in the public interest and for a public purpose that cities,
districts, electric cooperatives and electric utility companies
participate as authorized in ORS 225.450 to 225.490 jointly and with
other persons to:
(a) Achieve economies of scale in the generation of electricity;
(b) Meet the future power needs of this state and its inhabitants;
and
(c) Participate in transactions useful for the development of an
efficient system for the transmission and distribution or marketing of
electric power and related goods and commodities.
(2) ORS 225.450 to 225.490 shall be construed liberally to
effectuate the purposes set out in subsection (1) of this section. [1967
c.603 §3; 1999 c.865 §35]
In addition to the powers otherwise conferred on cities of this state, a
city that owns or operates an electric light and power system, or a city
that owns or operates an electric cogeneration facility as defined in ORS
758.505, may plan, finance, construct, acquire, operate, own and maintain
an undivided interest in common facilities within or without the state
jointly with one or more other cities, with one or more districts, with
one or more electric cooperatives or with one or more persons, or with
any combination of such cities, districts, electric cooperatives or
persons, and may make such plans and enter into such contracts and
agreements as are necessary or appropriate for such joint planning,
financing, construction, acquisition, operation, ownership or
maintenance. [1967 c.603 §4; 1979 c.151 §2; 1993 c.141 §2; 1999 c.865
§36; 2001 c.733 §4](1) In carrying out the powers granted in ORS
225.470, a city of this state shall be liable only for its own acts with
regard to the planning, financing, construction, acquisition, operation,
ownership or maintenance of common facilities. No moneys or other
contributions supplied by a city of this state for the planning,
financing, construction, acquisition, operation or maintenance of common
facilities shall be credited or applied otherwise to the account of any
other participant in the common facilities.
(2) A city shall not exercise its power of eminent domain to
acquire a then existing thermal power plant or any part thereof. [1967
c.603 §5] Any city
of this state participating in common facilities under ORS 225.450 to
225.490 may furnish money and provide property, both real and personal,
and to the extent and in the manner provided by its charter issue and
notwithstanding any other provision of law, sell, either at public or
privately negotiated sale, revenue bonds pledging revenues of its
electric system and its interest or share of the revenues derived from
the common facilities and any additions or betterments thereto, in order
to pay its respective share of the cost of the planning, financing,
acquisition and construction thereof. All moneys paid or property
supplied by any such city for the purpose of carrying out the powers
conferred by ORS 225.450 to 225.490 are declared to be for a public
purpose. [1967 c.603 §6; 1969 c.341 §1; 1999 c.865 §37]
_______________
|
