Franchise fees are charged as part of an agreement between local governments and utilities that use public rights-of-way. These agreements ensure that companies receiving special use of rights-of-way are paying fees to reimburse local governments for use of public services, and to prevent general taxpayers from subsidizing extraordinary use. Franchise agreements outline the terms under which utility companies use city rights-of-way, including compensation requirements. Franchise fees are typically calculated on a percentage of the revenues derived from sales of the utility company to customers in that service area or territory.
Tigard’s Franchised Utility Ordinance can be found in the Tigard Municipal (TMC) 15.06. In December 2014, the ordinance was updated to modifying the definition of “gross revenues” in TMC Section 15.06.020 and the right-of-way usage fee in TMC Section 15.06.100.
The city is served by two franchised solid waste haulers: Pride Disposal Company and Waste Management Incorporated. View the solid waste rate schedule.
Applying for a Franchise
- Any person applying for a franchise (including an application for renewal) shall pay an application fee to cover the cost of processing the application.
- Information identifying the applicant and describing the utility system the applicant proposes to operate in the rights-of-way. The initial application shall include engineering plans, specifications and a network map showing the anticipated location and route of proposed facilities in the right-of-way, including both existing and proposed facilities. If any of the facilities are owned by others, that information should be provided.
- Information establishing that the applicant has obtained or is in the process of obtaining all other required governmental approvals to construct and operate the system and to offer or provide the services proposed, including, if applicable, any PUC filings or approvals.
Current franchisees and franchise rates are:
|Service||Provider||Rate (based on Gross Revenues)|
|Electric||Portland General Electric||5%*|
|Natural Gas||NW Natural||5%|
|Sanitary Sewer||City of Tigard||5%|
|Water||City of Tigard||5%|
| * includes 1.5% increase from FY 13 budget
** includes an increase approved in FY 14 budget