262.065 Dutiesof agency treasurer; disposition of funds; accounting system; reports; audit;appointment and duties of agency manager
262.075 Agencyas state political subdivision; eminent domain powers; financial transactionpowers
REVENUEOBLIGATIONS
262.085 Authorityto issue revenue obligations; procedure; rights and duties created by revenueobligations; interest rate; exemption from state taxation; immunity frompersonal liability in connection with issuance
RATES
262.095 Ratesfor energy furnished by agency
MISCELLANEOUS
262.105 Taxationof agency property in same manner as private power corporations
262.115 Constructionof ORS 262.005 to 262.115 and 308.505; severability
GENERALPROVISIONS
262.005Definitions for ORS 262.015 to 262.105. As used in ORS 262.015 to 262.105,unless the context requires otherwise:
(1)“Electric cooperative” means a cooperative corporation owning and operating anelectric distribution system.
(2)“Joint operating agency” means an agency organized by three or more cities orpeople’s utility districts under the laws of this state for the purposes andaccording to ORS 262.005 to 262.105.
(3)“Privately owned electric utility company” means an electric utility operatedfor profit and subject to regulation by the Public Utility Commission of Oregonor the equivalent officer or commission of any other state.
(4)“Utility properties” means a plant, works or other property used fordevelopment, generation, storage, distribution or transmission of electricity. “Utilityproperties” does not include facilities for uranium refining, processing orreprocessing. [1973 c.722 §1; 2005 c.22 §190; 2007 c.301 §42; 2007 c.895 §13]
262.010 [Repealed by1969 c.12 §1]
262.015Authority for joint operating agency formation; powers. (1) Any threeor more cities or people’s utility districts or combinations thereof, organizedunder the laws of this state, may form a joint operating agency to plan,acquire, construct, own, operate and otherwise promote the development ofutility properties for the generation, transmission and marketing ofelectricity, electrical capacity or renewable energy certificates.
(2)A joint operating agency may participate with other publicly owned utilities,including other joint operating agencies, or with electric cooperatives, orwith privately owned electric utility companies, or with any combinationthereof, for any purpose set forth in subsection (1) of this section, whethersuch agencies or utilities are organized or incorporated under the laws of thisstate or any other jurisdiction. However, no joint operating agency may actalone or as the managing participant to acquire, construct, own or operate utilityproperties.
(3)Joint operating agencies, cities, people’s utility districts and privatelyowned utilities, or combinations thereof, may participate in joint ownership ofcommon facilities in accordance with ORS 225.450 to 225.490 or 261.235 to 261.255.[1973 c.722 §2; 2007 c.301 §43; 2007 c.895 §14]
262.020 [Repealed by1969 c.12 §1]
262.025Procedure for joint operating agency formation. A jointoperating agency shall be formed and come into existence by order of theDirector of the State Department of Energy in accordance with the followingprocedures:
(1)The legislative body of each city and people’s utility district desiring toform and be a member of a joint operating agency shall adopt an ordinancedeclaring their intention and authorizing formation and membership. Theordinance shall be effective only if submitted to the electors of the city orpeople’s utility district voting on the ordinance at any general election or ata special election called for that purpose. The ordinance shall include:
(a)A statement of the purpose or purposes for which the joint operating agency isto be formed.
(b)A finding by the legislative body that the formation of a joint operatingagency is necessary or desirable in order to plan for and provide an adequatesupply of electric energy to meet the needs of the customers of publicly ownedutilities in Oregon.
(c)A statement of the projected energy loads and resources relied upon by thelegislative body to support such finding.
(d)A general description of the means by which the joint operating agency proposesto accomplish its purposes, including a description of any specific utilityproperties then identified as a proposed activity of the joint operatingagency.
(e)A statement of the financial contribution, if any, to be made by the city ordistrict to the joint operating agency at the time of organization as acondition of membership.
(2)Upon such approval of such an ordinance or ordinances, each such city anddistrict shall file with the director an application to form and be a member ofa joint operating agency. The application shall:
(a)State the proposed name of the operating agency, the proposed address of itsprincipal business office, and the purpose or purposes for which it is to beformed;
(b)Contain a certified copy of the ordinance of each applicant city and districtas approved by the electors; and
(c)State generally how the joint operating agency proposes to accomplish itspurposes.
(3)The director shall cause notice of an application to be published forthwith inthe bulletin referred to in ORS 183.360. Such notice shall:
(a)Summarize fairly the contents of the application;
(b)Fix a date not less than 20 nor more than 30 days after the date of publicationprior to which interested parties may submit in writing any data, views, orarguments with respect to the application; and
(c)Fix a date not less than 30 nor more than 60 days after the date of publicationfor the entry of an order approving or disapproving an application.
(4)In considering the application, the director shall give full and fairconsideration to all data, views and arguments submitted on behalf of theapplicants or any other interested person.
(5)On or before the date fixed in subsection (3)(c) of this section, the directorshall enter an order establishing the joint operating agency in accordance withthe application if the director finds (a) that the statements set forth in theapplication are substantially correct; (b) that formation of the proposed jointoperating agency is necessary or desirable to plan for or provide an adequatesupply of electric energy to meet the needs of the customers of publicly ownedutilities in Oregon; and (c) that adequate provision has been or can be madefor financing the activities of the joint operating agency. The joint operatingagency shall be established as of the date of such order.
(6)If the director finds that the application is not in the required form or thatadditional data is required to support the application, the director shallenter an order so finding. Such an order shall not preclude the applicants fromfiling a revised application based upon the same approved ordinances.
(7)If the director does not enter an order as authorized under subsection (5) or(6) of this section within 60 days after the date of publication, theapplication shall be considered approved, and the joint operating agency shallbe established as of such 60th day.
(8)A joint operating agency, organized as provided by this section shall have allof the powers and responsibilities contained in ORS 262.005 to 262.105.
(9)Any party who has joined in filing an application in accordance with thissection, or who has filed timely objections to such application, and who feelsaggrieved by any finding or order of the director shall have the right ofjudicial review pursuant to ORS 183.480. [1973 c.722 §3; 2003 c.186 §11]
262.030 [Repealed by1969 c.12 §1]
262.035Power of agency to require financial contributions from members restricted; memberscontracting with agency for services. (1) A joint operating agency shall nothave the right or power to levy taxes or to assess its members for financialcontributions. Each member city and district shall have the power to contributeor advance to the joint operating agency, solely out of surplus funds derivedfrom utility operations, such sums as may be duly authorized by the utilityboard of the city, if there is one and, if there is no utility board, by thelegislative body of the city or the district.
(2)No member of a joint operating agency shall be required to obligate all or anyportion of its revenues to a joint operating agency solely because of itsmembership.
(3)A member may, whenever authorized by its utility board if there is one and, ifthere is no utility board, by its legislative body, enter into contracts withthe joint operating agency to purchase capacity, energy or services and, as apart of such contracts, may agree to pay to the joint operating agency suchconsideration and to provide such security as it may determine advisable. [1973c.722 §4]
262.040 [Repealed by1969 c.12 §1]
262.045Procedure for modification of or withdrawal from agency membership. (1) After theformation of a joint operating agency, the legislative body of any city ordistrict not a member of the joint operating agency may adopt an ordinance andapply to the joint operating agency for membership. Such an ordinance shall notbe effective unless approved by electors of the city or people’s utilitydistrict as provided by ORS 262.025.
(2)Upon the affirmative vote of a majority of the members of the joint operatingagency, as evidenced by resolutions adopted by their respective legislativebodies and filed with the joint operating agency, an application for membershipshall be accepted. As a condition of approving such an application, the membersof a joint operating agency may require the applicant to make contributions orcommitments to place the applicant in substantial parity with the existingmembers.
(3)A member may not withdraw from a joint operating agency, nor may a jointoperating agency be dissolved, while the agency has outstanding revenueobligations for which repayment provision has not been made. When a jointoperating agency has no such outstanding revenue obligations:
(a)Any member may withdraw from the joint operating agency, but will therebyforfeit any and all rights and interests which it may have in the agency andthe assets thereof unless the remaining members, by resolution of theirrespective legislative bodies and filed with the joint operating agency,unanimously consent otherwise; however, a member may not withdraw if, followingits withdrawal, the joint operating agency would have less than three members.Any withdrawing member shall remain fully liable and responsible for allcontractual obligations incurred by it to the joint operating agency during theperiod of its membership according to the terms of such obligations.
(b)The joint operating agency may be dissolved by the unanimous agreement of themembers, as evidenced by resolutions adopted by their respective legislativebodies and filed with the joint operating agency. After provision has been madefor the payment of all of the dissolved agency’s debts and obligations, themembers shall hold its remaining assets as tenants in common. [1973 c.722 §5]
262.055Management of agency; directors; officers; meetings. (1) A jointoperating agency shall be managed and controlled by a board of directors. Thecity’s utility board, if there is one and if there is no such board, thelegislative body of each member city and district shall appoint arepresentative to serve as a director on the board. However, if the jointoperating agency has less than four members, each member shall appoint tworepresentatives to serve as directors, each of whom shall cast one-half of thevotes to which the member is entitled as provided by subsection (4) of thissection. Each member may appoint one or more alternates to serve as a directorin the absence or disability of a representative. Each representative andalternate shall serve at the pleasure of the legislative body of the appointingmember, but no director shall serve following the withdrawal of the appointingmember. Notwithstanding any other provision of law or city charter a member mayappoint any of its officers and employees to serve as its representatives andalternates. A joint operating agency may provide reasonable compensation to itsdirectors.
(2)Each director of a joint operating agency shall act as a representative of theappointing member and shall report to and be bound by the policy decisions ofthe utility board or legislative body thereof, as the case may be.
(3)The board of the joint operating agency shall adopt rules for calling andconducting its meetings and carrying out its business and shall adopt anofficial seal. All proceedings of the board shall be by motion or resolution,and shall be recorded in the minute book of the board which shall be a publicrecord. A majority of the board shall constitute a quorum for the transactionof business; however, no motion or resolution shall be adopted unless thedirectors voting are entitled to cast a majority of the votes of all members ofthe joint operating agency.
(4)At all meetings of the board, each member city and district shall have one voteby virtue of its membership. The board of directors of a joint operating agencyshall provide by resolution for voting procedures which shall take into accountthe relative population of the members, together with their contributions toand energy purchases from the joint operating agency, and which shall providethat the interests of smaller members will be effectively represented.
(5)The board of directors shall elect a president, vice president and secretary,who shall serve at the pleasure of the board. The officers shall perform theduties delegated to them by the board.
(6)The board of directors shall appoint a treasurer, and may appoint such otherofficers, agents and employees as it considers appropriate and necessary toaccomplish the purposes of the joint operating agency, and may provide fortheir compensation, and for the duties of such other officers, agents andemployees. The board may appoint trustees, paying agents, depositories andsimilar agents within or without the State of Oregon.
(7)All meetings of the board of directors, except meetings on matters involvingthe management of employees, and other labor matters, shall be open to thepublic. [1973 c.722 §6]
262.065Duties of agency treasurer; disposition of funds; accounting system; reports;audit; appointment and duties of agency manager. (1) Except aspermitted in ORS 262.085, the treasurer shall be custodian of all funds of thejoint operating agency and shall pay them out only by order of the board,except as provided in subsection (2) of this section.
(2)The board may delegate to the treasurer standing authority to make payments ofroutine expenses as defined by the board.
(3)Before the treasurer enters upon the treasurer’s duties, the treasurer shallgive bond or an irrevocable letter of credit to the joint operating agency inan amount which the board finds by resolution will protect the agency againstloss, conditioned for the faithful discharge of duties and further conditionedthat all funds which the treasurer receives as treasurer will be faithfullykept and accounted for. Any letter of credit shall be issued by an insuredinstitution, as defined in ORS 706.008. The amount of the treasurer’s bond maybe increased or decreased from time to time as the board may by resolutiondirect. The surety on any such bond shall be a corporate surety authorized todo business in this state. The premiums on the bond or the fee for issuing theletter of credit of the treasurer shall be paid by the joint operating agency.
(4)All moneys of the joint operating agency shall be deposited by the treasurer indepositories designated by the board of directors, with such security as may beprescribed by the board. The treasurer shall establish a general fund and suchspecial funds as may be created by the board, to which the treasurer shallcredit all funds of the joint operating agency as the board by motion orresolution may direct.
(5)(a)The board shall adopt the uniform system of accounts prescribed from time totime by the Federal Energy Regulatory Commission and require that accountingfor receipts and disbursements for the joint operating agency be accomplishedin accordance with the uniform system of accounts.
(b)The board shall file with the Director of the State Department of Energy anannual report in the form required by the Federal Energy Regulatory Commission.
(c)An annual audit shall be made in the manner provided in ORS 297.405 to 297.555.A copy of such audit shall be filed in the office of the Secretary of State andin the office of the Director of the State Department of Energy.
(6)(a)The board of each joint operating agency may appoint a manager. The managershall be appointed for such term and receive such salary as the board shall fixby resolution. Appointments and removals of the manager shall be by resolutionsadopted by a majority vote.
(b)In case of absence or temporary disability of the manager, the board shalldesignate an acting manager.
(c)The manager shall be chief administrative officer of the joint operatingagency, shall have control of the administrative functions of the jointoperating agency and shall be responsible to the board for efficientadministration of all affairs of the joint operating agency placed in themanager’s charge. The manager may attend meetings of the board and itscommittees and take part in discussion of any matters pertaining to the manager’sduties, but shall have no vote. The manager shall:
(A)Carry out orders of the board and see that all laws of this state pertaining tomatters within the functions of the joint operating agency are duly enforced;
(B)Keep the board advised as to the financial condition and needs of the jointoperating agency;
(C)Prepare an annual estimate for the ensuing fiscal year of the probable expensesof the joint operating agency, and recommend to the board what development workshould be undertaken, and any extensions and additions which should be madeduring the ensuing fiscal year, with an estimate of the costs of suchdevelopment work, extensions and additions;
(D)Certify to the board all bills, allowances and payrolls, including claims duecontractors of public works;
(E)Recommend to the board appropriate salaries of the employees of the office, andscale of salaries or wages to be paid for different classes of service requiredby the joint operating agency;
(F)Hire and discharge clerks, laborers and other employees under the manager’sdirection; and
(G)Perform such other duties as may be imposed by the board. [1973 c.722 §7; 1977c.774 §17; 1979 c.286 §4; 1991 c.331 §51; 1997 c.631 §430; 2001 c.104 §80]
262.075Agency as state political subdivision; eminent domain powers; financialtransaction powers.(1) Each joint operating agency shall be a political subdivision of the Stateof Oregon, and shall be a municipal corporation with the right to sue and besued in its own name. Except as otherwise provided, a joint operating agencyshall have all the powers, rights, privileges and exemptions conferred onpeople’s utility districts.
(2)A joint operating agency shall have the power to acquire, hold, sell anddispose of real and other property, within or without this state, which theboard of directors in its discretion finds reasonably necessary or incident tothe generation, transmission and marketing of electricity, electrical capacityor renewable energy certificates. However, such an agency shall not acquire oroperate any facilities for the distribution of electricity.
(3)A joint operating agency shall have the power of eminent domain which it mayexercise for the purpose of acquiring property; however, a joint operatingagency shall not condemn any properties owned by a publicly or privately ownedutility which are being used for the generation or transmission of electricityor are being developed for such purposes with due diligence, except to acquirea right of way to cross such properties in a manner which will not interferewith the use thereof by the owner.
(4)A joint operating agency shall have the power to enter into contracts, leasesand other undertakings considered necessary or proper by its board, includingbut not limited to contracts for any term relating to the purchase, sale,interchange, assignment, allocation, transfer or wheeling of power with theGovernment of the United States, or any agency thereof, and with any othermunicipal corporation or privately owned utility, or any combination thereof,within or without the state, and may purchase, deliver or receive poweranywhere.
(5)A joint operating agency shall have the power to borrow money and incurindebtedness, to issue, sell and assume evidences of indebtedness, to refundand retire any indebtedness that may exist against the agency or its revenues,and to pledge any part of its revenues. A joint operating agency may borrowfrom banks or other financial institutions such sums on such terms as the boardconsiders necessary or advisable. A joint operating agency may also issue, selland assume bond anticipation notes, refunding bond anticipation notes, or theirequivalent, which shall bear such date or dates, mature at such time or times,be in such denominations and in such form, be payable in such medium, at suchplace or places, and be subject to such terms of redemption, as the boardconsiders necessary or advisable. The issuance and sale of revenue obligationsby a joint operating agency shall be governed by ORS 262.085.
(6)The joint operating agency may apply for, accept, receive and expendappropriations, grants, loans, gifts, bequests and devises in carrying out itsfunctions as provided by law. [1973 c.722 §8; 2007 c.301 §44; 2007 c.895 §15]
REVENUEOBLIGATIONS
262.085Authority to issue revenue obligations; procedure; rights and duties created byrevenue obligations; interest rate; exemption from state taxation; immunityfrom personal liability in connection with issuance. (1) Toaccomplish any of its corporate purposes, a joint operating agency shall havethe power to issue revenue obligations payable from the revenues derived by itfrom its ownership of, or its participation in or contribution to the ownershipor development of, any one or more utility properties. The issuance of suchrevenue obligations shall be governed by the provisions of subsections (2) to(13) of this section.
(2)The board of directors shall issue revenue obligations only by bond resolution.The bond resolution shall specify the corporate purposes for which the proceedsof the revenue obligations shall be expended, declare the cost of carrying outsuch purposes as nearly as possible, contain such covenants, and provide forthe issuance and sale of revenue obligations in such form and amount as thedirectors determine. In declaring such cost, the directors may include thefunds necessary for working capital, reserves, fuel and fuel assemblies,interest during construction and for a reasonable period thereafter, thepayment of organizational and planning expenses, the repayment of advances andsuch other expenses as may be reasonably necessary to carry out the purposes ofsuch resolution. The bond resolution may provide that utility propertiessubsequently acquired or constructed by the joint operating agency shall beconsidered betterments or additions to, or extensions of the specified utilityproperty, whether or not physically connected.
(3)The bond resolution may provide for the establishment of one or more specialfunds, and such funds may be under the control of the board or one or moretrustees. The bond resolution may obligate the joint operating agency todeposit and expend the proceeds of the revenue obligations only into and fromsuch fund or funds, and to set aside and pay into such fund or funds any fixedproportion or fixed amount of the revenues derived by it from any or all of itsutility properties or other corporate activities, as the board in itsdiscretion considers in the best interest of the agency. The board may issueand sell revenue obligations payable as to interest and principal only out ofsuch fund or funds. In creating any special fund for the payment of revenueobligations, the board shall have due regard to the cost of operation andmaintenance of the joint operating agency’s utility properties, and to anyproportion or amount of the revenues previously pledged as a fund for thepayment of revenue obligations, and shall not obligate the agency to set asideinto such special fund or funds a greater amount or proportion of the revenuesand proceeds than in its judgment will be available over and above such cost ofmaintenance and operation and the amount or proportion of the revenuespreviously pledged.
(4)Any revenue obligations and the interest thereon issued against any fundprovided for in subsection (3) of this section shall be a valid claim of theholder thereof only as against such special fund and the proportion or amountof the revenues pledged to such fund, but shall constitute a prior charge overall other charges or claims whatsoever, against such fund and the proportion oramount of the revenues pledged to the fund. Each revenue obligation shall stateon its face that it is payable from a special fund, naming the fund and theresolution creating it, or shall describe the alternate method for the paymentthereof as provided by the resolution authorizing the fund.
(5)Any pledge of revenues or other moneys or obligations made by a joint operatingagency shall be valid and binding from the time that the pledge is made andrecorded in the minute book of the joint operating agency. Revenues or othermoneys or obligations so pledged and later received by a joint operating agencyshall immediately be subject to the lien of the pledge without any physicaldelivery or further act. The lien of the pledge shall be valid and binding againstany parties having claims of any kind in tort, contract or otherwise against ajoint operating agency, irrespective of whether such parties have noticethereof. Neither the resolution nor other instrument by which a pledge iscreated need be recorded except in the minute book of the joint operatingagency, nor shall the filing of any financing statement under the UniformCommercial Code be required to perfect such pledge.
(6)The revenue obligations issued under the provisions of subsections (1) to (5) ofthis section shall bear such date or dates, mature in such amounts at such timeor times, be in such denominations, be in such form, either coupon orregistered or both, carry such registration privileges, be made transferable,exchangeable and interchangeable, be payable in such medium, at such place orplaces, and be subject to such terms of redemption as the board of directorsshall declare in the bond resolution.
(7)Any resolution authorizing any revenue obligation, and any revenue obligation,may provide for and contain such covenants in favor of the purchaser or holderof such obligation as the board of directors shall determine to be necessary,desirable, or convenient in order to secure and protect the obligation and itspurchaser or holder and to enhance the marketability of the obligation. Amongother things, such covenants may define events of default, provide for theappointment of a trustee or receiver in the event of default, and provide thatany such trustee or receiver may take possession and control of any portion orall of the business and property of the joint operating agency upon theoccasion of any event of default.
(8)Notwithstanding any other provision of law, the revenue obligations issued by ajoint operating agency may be sold by the board of directors upon such termsand conditions and at such rate or rates of interest and for such price orprices as it may consider most advantageous to the joint operating agency, withor without public bidding. The board of directors may make contracts for thefuture sale from time to time of revenue obligations by which the contractpurchasers shall be committed to the prices, terms and conditions stated insuch contract, and the board of directors may pay such consideration as itdeems proper for such commitments.
(9)The board of directors may provide by resolution for the issuance of fundingand refunding revenue obligations in order to take up and refund any one ormore series, or portion of a series, of outstanding revenue obligations at suchtime or times at or prior to the maturity thereof as it may determine. Suchrefunding revenue obligations may be sold or exchanged at par or otherwise asthe board of directors determines is in the best interest of the jointoperating agency.
(10)The board of directors may provide in any contract for the construction,acquisition or improvement of utility properties that payment shall be madeonly in outstanding revenue obligations at their par value.
(11)All revenue obligations issued pursuant to this section shall be legalsecurities which may be used by any bank or trust company for deposit with theState Treasurer or a county treasurer or city treasurer, as security fordeposits in lieu of a surety bond under any law relating to deposits of publicmoneys and shall constitute legal investments for trustees and otherfiduciaries other than corporations doing a trust business in this state andfor savings and loan associations, banks and insurance companies doing a trustbusiness in the state. All such revenue obligations and all couponsappertaining thereto shall be negotiable instruments within the meaning of andfor all purposes of the law of this state.
(12)All revenue obligations issued pursuant to this section, the interest thereon,and investment income therefrom shall be exempt from all taxes levied by thestate, its agencies, instrumentalities, and political subdivisions.
(13)Neither the board of directors of the joint operating agency nor any personexecuting any revenue oblig
262.065 Dutiesof agency treasurer; disposition of funds; accounting system; reports; audit;appointment and duties of agency manager
262.075 Agencyas state political subdivision; eminent domain powers; financial transactionpowers
REVENUEOBLIGATIONS
262.085 Authorityto issue revenue obligations; procedure; rights and duties created by revenueobligations; interest rate; exemption from state taxation; immunity frompersonal liability in connection with issuance
RATES
262.095 Ratesfor energy furnished by agency
MISCELLANEOUS
262.105 Taxationof agency property in same manner as private power corporations
262.115 Constructionof ORS 262.005 to 262.115 and 308.505; severability
GENERALPROVISIONS
262.005Definitions for ORS 262.015 to 262.105. As used in ORS 262.015 to 262.105,unless the context requires otherwise:
(1)“Electric cooperative” means a cooperative corporation owning and operating anelectric distribution system.
(2)“Joint operating agency” means an agency organized by three or more cities orpeople’s utility districts under the laws of this state for the purposes andaccording to ORS 262.005 to 262.105.
(3)“Privately owned electric utility company” means an electric utility operatedfor profit and subject to regulation by the Public Utility Commission of Oregonor the equivalent officer or commission of any other state.
(4)“Utility properties” means a plant, works or other property used fordevelopment, generation, storage, distribution or transmission of electricity. “Utilityproperties” does not include facilities for uranium refining, processing orreprocessing. [1973 c.722 §1; 2005 c.22 §190; 2007 c.301 §42; 2007 c.895 §13]
262.010 [Repealed by1969 c.12 §1]
262.015Authority for joint operating agency formation; powers. (1) Any threeor more cities or people’s utility districts or combinations thereof, organizedunder the laws of this state, may form a joint operating agency to plan,acquire, construct, own, operate and otherwise promote the development ofutility properties for the generation, transmission and marketing ofelectricity, electrical capacity or renewable energy certificates.
(2)A joint operating agency may participate with other publicly owned utilities,including other joint operating agencies, or with electric cooperatives, orwith privately owned electric utility companies, or with any combinationthereof, for any purpose set forth in subsection (1) of this section, whethersuch agencies or utilities are organized or incorporated under the laws of thisstate or any other jurisdiction. However, no joint operating agency may actalone or as the managing participant to acquire, construct, own or operate utilityproperties.
(3)Joint operating agencies, cities, people’s utility districts and privatelyowned utilities, or combinations thereof, may participate in joint ownership ofcommon facilities in accordance with ORS 225.450 to 225.490 or 261.235 to 261.255.[1973 c.722 §2; 2007 c.301 §43; 2007 c.895 §14]
262.020 [Repealed by1969 c.12 §1]
262.025Procedure for joint operating agency formation. A jointoperating agency shall be formed and come into existence by order of theDirector of the State Department of Energy in accordance with the followingprocedures:
(1)The legislative body of each city and people’s utility district desiring toform and be a member of a joint operating agency shall adopt an ordinancedeclaring their intention and authorizing formation and membership. Theordinance shall be effective only if submitted to the electors of the city orpeople’s utility district voting on the ordinance at any general election or ata special election called for that purpose. The ordinance shall include:
(a)A statement of the purpose or purposes for which the joint operating agency isto be formed.
(b)A finding by the legislative body that the formation of a joint operatingagency is necessary or desirable in order to plan for and provide an adequatesupply of electric energy to meet the needs of the customers of publicly ownedutilities in Oregon.
(c)A statement of the projected energy loads and resources relied upon by thelegislative body to support such finding.
(d)A general description of the means by which the joint operating agency proposesto accomplish its purposes, including a description of any specific utilityproperties then identified as a proposed activity of the joint operatingagency.
(e)A statement of the financial contribution, if any, to be made by the city ordistrict to the joint operating agency at the time of organization as acondition of membership.
(2)Upon such approval of such an ordinance or ordinances, each such city anddistrict shall file with the director an application to form and be a member ofa joint operating agency. The application shall:
(a)State the proposed name of the operating agency, the proposed address of itsprincipal business office, and the purpose or purposes for which it is to beformed;
(b)Contain a certified copy of the ordinance of each applicant city and districtas approved by the electors; and
(c)State generally how the joint operating agency proposes to accomplish itspurposes.
(3)The director shall cause notice of an application to be published forthwith inthe bulletin referred to in ORS 183.360. Such notice shall:
(a)Summarize fairly the contents of the application;
(b)Fix a date not less than 20 nor more than 30 days after the date of publicationprior to which interested parties may submit in writing any data, views, orarguments with respect to the application; and
(c)Fix a date not less than 30 nor more than 60 days after the date of publicationfor the entry of an order approving or disapproving an application.
(4)In considering the application, the director shall give full and fairconsideration to all data, views and arguments submitted on behalf of theapplicants or any other interested person.
(5)On or before the date fixed in subsection (3)(c) of this section, the directorshall enter an order establishing the joint operating agency in accordance withthe application if the director finds (a) that the statements set forth in theapplication are substantially correct; (b) that formation of the proposed jointoperating agency is necessary or desirable to plan for or provide an adequatesupply of electric energy to meet the needs of the customers of publicly ownedutilities in Oregon; and (c) that adequate provision has been or can be madefor financing the activities of the joint operating agency. The joint operatingagency shall be established as of the date of such order.
(6)If the director finds that the application is not in the required form or thatadditional data is required to support the application, the director shallenter an order so finding. Such an order shall not preclude the applicants fromfiling a revised application based upon the same approved ordinances.
(7)If the director does not enter an order as authorized under subsection (5) or(6) of this section within 60 days after the date of publication, theapplication shall be considered approved, and the joint operating agency shallbe established as of such 60th day.
(8)A joint operating agency, organized as provided by this section shall have allof the powers and responsibilities contained in ORS 262.005 to 262.105.
(9)Any party who has joined in filing an application in accordance with thissection, or who has filed timely objections to such application, and who feelsaggrieved by any finding or order of the director shall have the right ofjudicial review pursuant to ORS 183.480. [1973 c.722 §3; 2003 c.186 §11]
262.030 [Repealed by1969 c.12 §1]
262.035Power of agency to require financial contributions from members restricted; memberscontracting with agency for services. (1) A joint operating agency shall nothave the right or power to levy taxes or to assess its members for financialcontributions. Each member city and district shall have the power to contributeor advance to the joint operating agency, solely out of surplus funds derivedfrom utility operations, such sums as may be duly authorized by the utilityboard of the city, if there is one and, if there is no utility board, by thelegislative body of the city or the district.
(2)No member of a joint operating agency shall be required to obligate all or anyportion of its revenues to a joint operating agency solely because of itsmembership.
(3)A member may, whenever authorized by its utility board if there is one and, ifthere is no utility board, by its legislative body, enter into contracts withthe joint operating agency to purchase capacity, energy or services and, as apart of such contracts, may agree to pay to the joint operating agency suchconsideration and to provide such security as it may determine advisable. [1973c.722 §4]
262.040 [Repealed by1969 c.12 §1]
262.045Procedure for modification of or withdrawal from agency membership. (1) After theformation of a joint operating agency, the legislative body of any city ordistrict not a member of the joint operating agency may adopt an ordinance andapply to the joint operating agency for membership. Such an ordinance shall notbe effective unless approved by electors of the city or people’s utilitydistrict as provided by ORS 262.025.
(2)Upon the affirmative vote of a majority of the members of the joint operatingagency, as evidenced by resolutions adopted by their respective legislativebodies and filed with the joint operating agency, an application for membershipshall be accepted. As a condition of approving such an application, the membersof a joint operating agency may require the applicant to make contributions orcommitments to place the applicant in substantial parity with the existingmembers.
(3)A member may not withdraw from a joint operating agency, nor may a jointoperating agency be dissolved, while the agency has outstanding revenueobligations for which repayment provision has not been made. When a jointoperating agency has no such outstanding revenue obligations:
(a)Any member may withdraw from the joint operating agency, but will therebyforfeit any and all rights and interests which it may have in the agency andthe assets thereof unless the remaining members, by resolution of theirrespective legislative bodies and filed with the joint operating agency,unanimously consent otherwise; however, a member may not withdraw if, followingits withdrawal, the joint operating agency would have less than three members.Any withdrawing member shall remain fully liable and responsible for allcontractual obligations incurred by it to the joint operating agency during theperiod of its membership according to the terms of such obligations.
(b)The joint operating agency may be dissolved by the unanimous agreement of themembers, as evidenced by resolutions adopted by their respective legislativebodies and filed with the joint operating agency. After provision has been madefor the payment of all of the dissolved agency’s debts and obligations, themembers shall hold its remaining assets as tenants in common. [1973 c.722 §5]
262.055Management of agency; directors; officers; meetings. (1) A jointoperating agency shall be managed and controlled by a board of directors. Thecity’s utility board, if there is one and if there is no such board, thelegislative body of each member city and district shall appoint arepresentative to serve as a director on the board. However, if the jointoperating agency has less than four members, each member shall appoint tworepresentatives to serve as directors, each of whom shall cast one-half of thevotes to which the member is entitled as provided by subsection (4) of thissection. Each member may appoint one or more alternates to serve as a directorin the absence or disability of a representative. Each representative andalternate shall serve at the pleasure of the legislative body of the appointingmember, but no director shall serve following the withdrawal of the appointingmember. Notwithstanding any other provision of law or city charter a member mayappoint any of its officers and employees to serve as its representatives andalternates. A joint operating agency may provide reasonable compensation to itsdirectors.
(2)Each director of a joint operating agency shall act as a representative of theappointing member and shall report to and be bound by the policy decisions ofthe utility board or legislative body thereof, as the case may be.
(3)The board of the joint operating agency shall adopt rules for calling andconducting its meetings and carrying out its business and shall adopt anofficial seal. All proceedings of the board shall be by motion or resolution,and shall be recorded in the minute book of the board which shall be a publicrecord. A majority of the board shall constitute a quorum for the transactionof business; however, no motion or resolution shall be adopted unless thedirectors voting are entitled to cast a majority of the votes of all members ofthe joint operating agency.
(4)At all meetings of the board, each member city and district shall have one voteby virtue of its membership. The board of directors of a joint operating agencyshall provide by resolution for voting procedures which shall take into accountthe relative population of the members, together with their contributions toand energy purchases from the joint operating agency, and which shall providethat the interests of smaller members will be effectively represented.
(5)The board of directors shall elect a president, vice president and secretary,who shall serve at the pleasure of the board. The officers shall perform theduties delegated to them by the board.
(6)The board of directors shall appoint a treasurer, and may appoint such otherofficers, agents and employees as it considers appropriate and necessary toaccomplish the purposes of the joint operating agency, and may provide fortheir compensation, and for the duties of such other officers, agents andemployees. The board may appoint trustees, paying agents, depositories andsimilar agents within or without the State of Oregon.
(7)All meetings of the board of directors, except meetings on matters involvingthe management of employees, and other labor matters, shall be open to thepublic. [1973 c.722 §6]
262.065Duties of agency treasurer; disposition of funds; accounting system; reports;audit; appointment and duties of agency manager. (1) Except aspermitted in ORS 262.085, the treasurer shall be custodian of all funds of thejoint operating agency and shall pay them out only by order of the board,except as provided in subsection (2) of this section.
(2)The board may delegate to the treasurer standing authority to make payments ofroutine expenses as defined by the board.
(3)Before the treasurer enters upon the treasurer’s duties, the treasurer shallgive bond or an irrevocable letter of credit to the joint operating agency inan amount which the board finds by resolution will protect the agency againstloss, conditioned for the faithful discharge of duties and further conditionedthat all funds which the treasurer receives as treasurer will be faithfullykept and accounted for. Any letter of credit shall be issued by an insuredinstitution, as defined in ORS 706.008. The amount of the treasurer’s bond maybe increased or decreased from time to time as the board may by resolutiondirect. The surety on any such bond shall be a corporate surety authorized todo business in this state. The premiums on the bond or the fee for issuing theletter of credit of the treasurer shall be paid by the joint operating agency.
(4)All moneys of the joint operating agency shall be deposited by the treasurer indepositories designated by the board of directors, with such security as may beprescribed by the board. The treasurer shall establish a general fund and suchspecial funds as may be created by the board, to which the treasurer shallcredit all funds of the joint operating agency as the board by motion orresolution may direct.
(5)(a)The board shall adopt the uniform system of accounts prescribed from time totime by the Federal Energy Regulatory Commission and require that accountingfor receipts and disbursements for the joint operating agency be accomplishedin accordance with the uniform system of accounts.
(b)The board shall file with the Director of the State Department of Energy anannual report in the form required by the Federal Energy Regulatory Commission.
(c)An annual audit shall be made in the manner provided in ORS 297.405 to 297.555.A copy of such audit shall be filed in the office of the Secretary of State andin the office of the Director of the State Department of Energy.
(6)(a)The board of each joint operating agency may appoint a manager. The managershall be appointed for such term and receive such salary as the board shall fixby resolution. Appointments and removals of the manager shall be by resolutionsadopted by a majority vote.
(b)In case of absence or temporary disability of the manager, the board shalldesignate an acting manager.
(c)The manager shall be chief administrative officer of the joint operatingagency, shall have control of the administrative functions of the jointoperating agency and shall be responsible to the board for efficientadministration of all affairs of the joint operating agency placed in themanager’s charge. The manager may attend meetings of the board and itscommittees and take part in discussion of any matters pertaining to the manager’sduties, but shall have no vote. The manager shall:
(A)Carry out orders of the board and see that all laws of this state pertaining tomatters within the functions of the joint operating agency are duly enforced;
(B)Keep the board advised as to the financial condition and needs of the jointoperating agency;
(C)Prepare an annual estimate for the ensuing fiscal year of the probable expensesof the joint operating agency, and recommend to the board what development workshould be undertaken, and any extensions and additions which should be madeduring the ensuing fiscal year, with an estimate of the costs of suchdevelopment work, extensions and additions;
(D)Certify to the board all bills, allowances and payrolls, including claims duecontractors of public works;
(E)Recommend to the board appropriate salaries of the employees of the office, andscale of salaries or wages to be paid for different classes of service requiredby the joint operating agency;
(F)Hire and discharge clerks, laborers and other employees under the manager’sdirection; and
(G)Perform such other duties as may be imposed by the board. [1973 c.722 §7; 1977c.774 §17; 1979 c.286 §4; 1991 c.331 §51; 1997 c.631 §430; 2001 c.104 §80]
262.075Agency as state political subdivision; eminent domain powers; financialtransaction powers.(1) Each joint operating agency shall be a political subdivision of the Stateof Oregon, and shall be a municipal corporation with the right to sue and besued in its own name. Except as otherwise provided, a joint operating agencyshall have all the powers, rights, privileges and exemptions conferred onpeople’s utility districts.
(2)A joint operating agency shall have the power to acquire, hold, sell anddispose of real and other property, within or without this state, which theboard of directors in its discretion finds reasonably necessary or incident tothe generation, transmission and marketing of electricity, electrical capacityor renewable energy certificates. However, such an agency shall not acquire oroperate any facilities for the distribution of electricity.
(3)A joint operating agency shall have the power of eminent domain which it mayexercise for the purpose of acquiring property; however, a joint operatingagency shall not condemn any properties owned by a publicly or privately ownedutility which are being used for the generation or transmission of electricityor are being developed for such purposes with due diligence, except to acquirea right of way to cross such properties in a manner which will not interferewith the use thereof by the owner.
(4)A joint operating agency shall have the power to enter into contracts, leasesand other undertakings considered necessary or proper by its board, includingbut not limited to contracts for any term relating to the purchase, sale,interchange, assignment, allocation, transfer or wheeling of power with theGovernment of the United States, or any agency thereof, and with any othermunicipal corporation or privately owned utility, or any combination thereof,within or without the state, and may purchase, deliver or receive poweranywhere.
(5)A joint operating agency shall have the power to borrow money and incurindebtedness, to issue, sell and assume evidences of indebtedness, to refundand retire any indebtedness that may exist against the agency or its revenues,and to pledge any part of its revenues. A joint operating agency may borrowfrom banks or other financial institutions such sums on such terms as the boardconsiders necessary or advisable. A joint operating agency may also issue, selland assume bond anticipation notes, refunding bond anticipation notes, or theirequivalent, which shall bear such date or dates, mature at such time or times,be in such denominations and in such form, be payable in such medium, at suchplace or places, and be subject to such terms of redemption, as the boardconsiders necessary or advisable. The issuance and sale of revenue obligationsby a joint operating agency shall be governed by ORS 262.085.
(6)The joint operating agency may apply for, accept, receive and expendappropriations, grants, loans, gifts, bequests and devises in carrying out itsfunctions as provided by law. [1973 c.722 §8; 2007 c.301 §44; 2007 c.895 §15]
REVENUEOBLIGATIONS
262.085Authority to issue revenue obligations; procedure; rights and duties created byrevenue obligations; interest rate; exemption from state taxation; immunityfrom personal liability in connection with issuance. (1) Toaccomplish any of its corporate purposes, a joint operating agency shall havethe power to issue revenue obligations payable from the revenues derived by itfrom its ownership of, or its participation in or contribution to the ownershipor development of, any one or more utility properties. The issuance of suchrevenue obligations shall be governed by the provisions of subsections (2) to(13) of this section.
(2)The board of directors shall issue revenue obligations only by bond resolution.The bond resolution shall specify the corporate purposes for which the proceedsof the revenue obligations shall be expended, declare the cost of carrying outsuch purposes as nearly as possible, contain such covenants, and provide forthe issuance and sale of revenue obligations in such form and amount as thedirectors determine. In declaring such cost, the directors may include thefunds necessary for working capital, reserves, fuel and fuel assemblies,interest during construction and for a reasonable period thereafter, thepayment of organizational and planning expenses, the repayment of advances andsuch other expenses as may be reasonably necessary to carry out the purposes ofsuch resolution. The bond resolution may provide that utility propertiessubsequently acquired or constructed by the joint operating agency shall beconsidered betterments or additions to, or extensions of the specified utilityproperty, whether or not physically connected.
(3)The bond resolution may provide for the establishment of one or more specialfunds, and such funds may be under the control of the board or one or moretrustees. The bond resolution may obligate the joint operating agency todeposit and expend the proceeds of the revenue obligations only into and fromsuch fund or funds, and to set aside and pay into such fund or funds any fixedproportion or fixed amount of the revenues derived by it from any or all of itsutility properties or other corporate activities, as the board in itsdiscretion considers in the best interest of the agency. The board may issueand sell revenue obligations payable as to interest and principal only out ofsuch fund or funds. In creating any special fund for the payment of revenueobligations, the board shall have due regard to the cost of operation andmaintenance of the joint operating agency’s utility properties, and to anyproportion or amount of the revenues previously pledged as a fund for thepayment of revenue obligations, and shall not obligate the agency to set asideinto such special fund or funds a greater amount or proportion of the revenuesand proceeds than in its judgment will be available over and above such cost ofmaintenance and operation and the amount or proportion of the revenuespreviously pledged.
(4)Any revenue obligations and the interest thereon issued against any fundprovided for in subsection (3) of this section shall be a valid claim of theholder thereof only as against such special fund and the proportion or amountof the revenues pledged to such fund, but shall constitute a prior charge overall other charges or claims whatsoever, against such fund and the proportion oramount of the revenues pledged to the fund. Each revenue obligation shall stateon its face that it is payable from a special fund, naming the fund and theresolution creating it, or shall describe the alternate method for the paymentthereof as provided by the resolution authorizing the fund.
(5)Any pledge of revenues or other moneys or obligations made by a joint operatingagency shall be valid and binding from the time that the pledge is made andrecorded in the minute book of the joint operating agency. Revenues or othermoneys or obligations so pledged and later received by a joint operating agencyshall immediately be subject to the lien of the pledge without any physicaldelivery or further act. The lien of the pledge shall be valid and binding againstany parties having claims of any kind in tort, contract or otherwise against ajoint operating agency, irrespective of whether such parties have noticethereof. Neither the resolution nor other instrument by which a pledge iscreated need be recorded except in the minute book of the joint operatingagency, nor shall the filing of any financing statement under the UniformCommercial Code be required to perfect such pledge.
(6)The revenue obligations issued under the provisions of subsections (1) to (5) ofthis section shall bear such date or dates, mature in such amounts at such timeor times, be in such denominations, be in such form, either coupon orregistered or both, carry such registration privileges, be made transferable,exchangeable and interchangeable, be payable in such medium, at such place orplaces, and be subject to such terms of redemption as the board of directorsshall declare in the bond resolution.
(7)Any resolution authorizing any revenue obligation, and any revenue obligation,may provide for and contain such covenants in favor of the purchaser or holderof such obligation as the board of directors shall determine to be necessary,desirable, or convenient in order to secure and protect the obligation and itspurchaser or holder and to enhance the marketability of the obligation. Amongother things, such covenants may define events of default, provide for theappointment of a trustee or receiver in the event of default, and provide thatany such trustee or receiver may take possession and control of any portion orall of the business and property of the joint operating agency upon theoccasion of any event of default.
(8)Notwithstanding any other provision of law, the revenue obligations issued by ajoint operating agency may be sold by the board of directors upon such termsand conditions and at such rate or rates of interest and for such price orprices as it may consider most advantageous to the joint operating agency, withor without public bidding. The board of directors may make contracts for thefuture sale from time to time of revenue obligations by which the contractpurchasers shall be committed to the prices, terms and conditions stated insuch contract, and the board of directors may pay such consideration as itdeems proper for such commitments.
(9)The board of directors may provide by resolution for the issuance of fundingand refunding revenue obligations in order to take up and refund any one ormore series, or portion of a series, of outstanding revenue obligations at suchtime or times at or prior to the maturity thereof as it may determine. Suchrefunding revenue obligations may be sold or exchanged at par or otherwise asthe board of directors determines is in the best interest of the jointoperating agency.
(10)The board of directors may provide in any contract for the construction,acquisition or improvement of utility properties that payment shall be madeonly in outstanding revenue obligations at their par value.
(11)All revenue obligations issued pursuant to this section shall be legalsecurities which may be used by any bank or trust company for deposit with theState Treasurer or a county treasurer or city treasurer, as security fordeposits in lieu of a surety bond under any law relating to deposits of publicmoneys and shall constitute legal investments for trustees and otherfiduciaries other than corporations doing a trust business in this state andfor savings and loan associations, banks and insurance companies doing a trustbusiness in the state. All such revenue obligations and all couponsappertaining thereto shall be negotiable instruments within the meaning of andfor all purposes of the law of this state.
(12)All revenue obligations issued pursuant to this section, the interest thereon,and investment income therefrom shall be exempt from all taxes levied by thestate, its agencies, instrumentalities, and political subdivisions.
(13)Neither the board of directors of the joint operating agency nor any personexecuting any revenue oblig
262.065 Dutiesof agency treasurer; disposition of funds; accounting system; reports; audit;appointment and duties of agency manager
262.075 Agencyas state political subdivision; eminent domain powers; financial transactionpowers
REVENUEOBLIGATIONS
262.085 Authorityto issue revenue obligations; procedure; rights and duties created by revenueobligations; interest rate; exemption from state taxation; immunity frompersonal liability in connection with issuance
RATES
262.095 Ratesfor energy furnished by agency
MISCELLANEOUS
262.105 Taxationof agency property in same manner as private power corporations
262.115 Constructionof ORS 262.005 to 262.115 and 308.505; severability
GENERALPROVISIONS
262.005Definitions for ORS 262.015 to 262.105. As used in ORS 262.015 to 262.105,unless the context requires otherwise:
(1)“Electric cooperative” means a cooperative corporation owning and operating anelectric distribution system.
(2)“Joint operating agency” means an agency organized by three or more cities orpeople’s utility districts under the laws of this state for the purposes andaccording to ORS 262.005 to 262.105.
(3)“Privately owned electric utility company” means an electric utility operatedfor profit and subject to regulation by the Public Utility Commission of Oregonor the equivalent officer or commission of any other state.
(4)“Utility properties” means a plant, works or other property used fordevelopment, generation, storage, distribution or transmission of electricity. “Utilityproperties” does not include facilities for uranium refining, processing orreprocessing. [1973 c.722 §1; 2005 c.22 §190; 2007 c.301 §42; 2007 c.895 §13]
262.010 [Repealed by1969 c.12 §1]
262.015Authority for joint operating agency formation; powers. (1) Any threeor more cities or people’s utility districts or combinations thereof, organizedunder the laws of this state, may form a joint operating agency to plan,acquire, construct, own, operate and otherwise promote the development ofutility properties for the generation, transmission and marketing ofelectricity, electrical capacity or renewable energy certificates.
(2)A joint operating agency may participate with other publicly owned utilities,including other joint operating agencies, or with electric cooperatives, orwith privately owned electric utility companies, or with any combinationthereof, for any purpose set forth in subsection (1) of this section, whethersuch agencies or utilities are organized or incorporated under the laws of thisstate or any other jurisdiction. However, no joint operating agency may actalone or as the managing participant to acquire, construct, own or operate utilityproperties.
(3)Joint operating agencies, cities, people’s utility districts and privatelyowned utilities, or combinations thereof, may participate in joint ownership ofcommon facilities in accordance with ORS 225.450 to 225.490 or 261.235 to 261.255.[1973 c.722 §2; 2007 c.301 §43; 2007 c.895 §14]
262.020 [Repealed by1969 c.12 §1]
262.025Procedure for joint operating agency formation. A jointoperating agency shall be formed and come into existence by order of theDirector of the State Department of Energy in accordance with the followingprocedures:
(1)The legislative body of each city and people’s utility district desiring toform and be a member of a joint operating agency shall adopt an ordinancedeclaring their intention and authorizing formation and membership. Theordinance shall be effective only if submitted to the electors of the city orpeople’s utility district voting on the ordinance at any general election or ata special election called for that purpose. The ordinance shall include:
(a)A statement of the purpose or purposes for which the joint operating agency isto be formed.
(b)A finding by the legislative body that the formation of a joint operatingagency is necessary or desirable in order to plan for and provide an adequatesupply of electric energy to meet the needs of the customers of publicly ownedutilities in Oregon.
(c)A statement of the projected energy loads and resources relied upon by thelegislative body to support such finding.
(d)A general description of the means by which the joint operating agency proposesto accomplish its purposes, including a description of any specific utilityproperties then identified as a proposed activity of the joint operatingagency.
(e)A statement of the financial contribution, if any, to be made by the city ordistrict to the joint operating agency at the time of organization as acondition of membership.
(2)Upon such approval of such an ordinance or ordinances, each such city anddistrict shall file with the director an application to form and be a member ofa joint operating agency. The application shall:
(a)State the proposed name of the operating agency, the proposed address of itsprincipal business office, and the purpose or purposes for which it is to beformed;
(b)Contain a certified copy of the ordinance of each applicant city and districtas approved by the electors; and
(c)State generally how the joint operating agency proposes to accomplish itspurposes.
(3)The director shall cause notice of an application to be published forthwith inthe bulletin referred to in ORS 183.360. Such notice shall:
(a)Summarize fairly the contents of the application;
(b)Fix a date not less than 20 nor more than 30 days after the date of publicationprior to which interested parties may submit in writing any data, views, orarguments with respect to the application; and
(c)Fix a date not less than 30 nor more than 60 days after the date of publicationfor the entry of an order approving or disapproving an application.
(4)In considering the application, the director shall give full and fairconsideration to all data, views and arguments submitted on behalf of theapplicants or any other interested person.
(5)On or before the date fixed in subsection (3)(c) of this section, the directorshall enter an order establishing the joint operating agency in accordance withthe application if the director finds (a) that the statements set forth in theapplication are substantially correct; (b) that formation of the proposed jointoperating agency is necessary or desirable to plan for or provide an adequatesupply of electric energy to meet the needs of the customers of publicly ownedutilities in Oregon; and (c) that adequate provision has been or can be madefor financing the activities of the joint operating agency. The joint operatingagency shall be established as of the date of such order.
(6)If the director finds that the application is not in the required form or thatadditional data is required to support the application, the director shallenter an order so finding. Such an order shall not preclude the applicants fromfiling a revised application based upon the same approved ordinances.
(7)If the director does not enter an order as authorized under subsection (5) or(6) of this section within 60 days after the date of publication, theapplication shall be considered approved, and the joint operating agency shallbe established as of such 60th day.
(8)A joint operating agency, organized as provided by this section shall have allof the powers and responsibilities contained in ORS 262.005 to 262.105.
(9)Any party who has joined in filing an application in accordance with thissection, or who has filed timely objections to such application, and who feelsaggrieved by any finding or order of the director shall have the right ofjudicial review pursuant to ORS 183.480. [1973 c.722 §3; 2003 c.186 §11]
262.030 [Repealed by1969 c.12 §1]
262.035Power of agency to require financial contributions from members restricted; memberscontracting with agency for services. (1) A joint operating agency shall nothave the right or power to levy taxes or to assess its members for financialcontributions. Each member city and district shall have the power to contributeor advance to the joint operating agency, solely out of surplus funds derivedfrom utility operations, such sums as may be duly authorized by the utilityboard of the city, if there is one and, if there is no utility board, by thelegislative body of the city or the district.
(2)No member of a joint operating agency shall be required to obligate all or anyportion of its revenues to a joint operating agency solely because of itsmembership.
(3)A member may, whenever authorized by its utility board if there is one and, ifthere is no utility board, by its legislative body, enter into contracts withthe joint operating agency to purchase capacity, energy or services and, as apart of such contracts, may agree to pay to the joint operating agency suchconsideration and to provide such security as it may determine advisable. [1973c.722 §4]
262.040 [Repealed by1969 c.12 §1]
262.045Procedure for modification of or withdrawal from agency membership. (1) After theformation of a joint operating agency, the legislative body of any city ordistrict not a member of the joint operating agency may adopt an ordinance andapply to the joint operating agency for membership. Such an ordinance shall notbe effective unless approved by electors of the city or people’s utilitydistrict as provided by ORS 262.025.
(2)Upon the affirmative vote of a majority of the members of the joint operatingagency, as evidenced by resolutions adopted by their respective legislativebodies and filed with the joint operating agency, an application for membershipshall be accepted. As a condition of approving such an application, the membersof a joint operating agency may require the applicant to make contributions orcommitments to place the applicant in substantial parity with the existingmembers.
(3)A member may not withdraw from a joint operating agency, nor may a jointoperating agency be dissolved, while the agency has outstanding revenueobligations for which repayment provision has not been made. When a jointoperating agency has no such outstanding revenue obligations:
(a)Any member may withdraw from the joint operating agency, but will therebyforfeit any and all rights and interests which it may have in the agency andthe assets thereof unless the remaining members, by resolution of theirrespective legislative bodies and filed with the joint operating agency,unanimously consent otherwise; however, a member may not withdraw if, followingits withdrawal, the joint operating agency would have less than three members.Any withdrawing member shall remain fully liable and responsible for allcontractual obligations incurred by it to the joint operating agency during theperiod of its membership according to the terms of such obligations.
(b)The joint operating agency may be dissolved by the unanimous agreement of themembers, as evidenced by resolutions adopted by their respective legislativebodies and filed with the joint operating agency. After provision has been madefor the payment of all of the dissolved agency’s debts and obligations, themembers shall hold its remaining assets as tenants in common. [1973 c.722 §5]
262.055Management of agency; directors; officers; meetings. (1) A jointoperating agency shall be managed and controlled by a board of directors. Thecity’s utility board, if there is one and if there is no such board, thelegislative body of each member city and district shall appoint arepresentative to serve as a director on the board. However, if the jointoperating agency has less than four members, each member shall appoint tworepresentatives to serve as directors, each of whom shall cast one-half of thevotes to which the member is entitled as provided by subsection (4) of thissection. Each member may appoint one or more alternates to serve as a directorin the absence or disability of a representative. Each representative andalternate shall serve at the pleasure of the legislative body of the appointingmember, but no director shall serve following the withdrawal of the appointingmember. Notwithstanding any other provision of law or city charter a member mayappoint any of its officers and employees to serve as its representatives andalternates. A joint operating agency may provide reasonable compensation to itsdirectors.
(2)Each director of a joint operating agency shall act as a representative of theappointing member and shall report to and be bound by the policy decisions ofthe utility board or legislative body thereof, as the case may be.
(3)The board of the joint operating agency shall adopt rules for calling andconducting its meetings and carrying out its business and shall adopt anofficial seal. All proceedings of the board shall be by motion or resolution,and shall be recorded in the minute book of the board which shall be a publicrecord. A majority of the board shall constitute a quorum for the transactionof business; however, no motion or resolution shall be adopted unless thedirectors voting are entitled to cast a majority of the votes of all members ofthe joint operating agency.
(4)At all meetings of the board, each member city and district shall have one voteby virtue of its membership. The board of directors of a joint operating agencyshall provide by resolution for voting procedures which shall take into accountthe relative population of the members, together with their contributions toand energy purchases from the joint operating agency, and which shall providethat the interests of smaller members will be effectively represented.
(5)The board of directors shall elect a president, vice president and secretary,who shall serve at the pleasure of the board. The officers shall perform theduties delegated to them by the board.
(6)The board of directors shall appoint a treasurer, and may appoint such otherofficers, agents and employees as it considers appropriate and necessary toaccomplish the purposes of the joint operating agency, and may provide fortheir compensation, and for the duties of such other officers, agents andemployees. The board may appoint trustees, paying agents, depositories andsimilar agents within or without the State of Oregon.
(7)All meetings of the board of directors, except meetings on matters involvingthe management of employees, and other labor matters, shall be open to thepublic. [1973 c.722 §6]
262.065Duties of agency treasurer; disposition of funds; accounting system; reports;audit; appointment and duties of agency manager. (1) Except aspermitted in ORS 262.085, the treasurer shall be custodian of all funds of thejoint operating agency and shall pay them out only by order of the board,except as provided in subsection (2) of this section.
(2)The board may delegate to the treasurer standing authority to make payments ofroutine expenses as defined by the board.
(3)Before the treasurer enters upon the treasurer’s duties, the treasurer shallgive bond or an irrevocable letter of credit to the joint operating agency inan amount which the board finds by resolution will protect the agency againstloss, conditioned for the faithful discharge of duties and further conditionedthat all funds which the treasurer receives as treasurer will be faithfullykept and accounted for. Any letter of credit shall be issued by an insuredinstitution, as defined in ORS 706.008. The amount of the treasurer’s bond maybe increased or decreased from time to time as the board may by resolutiondirect. The surety on any such bond shall be a corporate surety authorized todo business in this state. The premiums on the bond or the fee for issuing theletter of credit of the treasurer shall be paid by the joint operating agency.
(4)All moneys of the joint operating agency shall be deposited by the treasurer indepositories designated by the board of directors, with such security as may beprescribed by the board. The treasurer shall establish a general fund and suchspecial funds as may be created by the board, to which the treasurer shallcredit all funds of the joint operating agency as the board by motion orresolution may direct.
(5)(a)The board shall adopt the uniform system of accounts prescribed from time totime by the Federal Energy Regulatory Commission and require that accountingfor receipts and disbursements for the joint operating agency be accomplishedin accordance with the uniform system of accounts.
(b)The board shall file with the Director of the State Department of Energy anannual report in the form required by the Federal Energy Regulatory Commission.
(c)An annual audit shall be made in the manner provided in ORS 297.405 to 297.555.A copy of such audit shall be filed in the office of the Secretary of State andin the office of the Director of the State Department of Energy.
(6)(a)The board of each joint operating agency may appoint a manager. The managershall be appointed for such term and receive such salary as the board shall fixby resolution. Appointments and removals of the manager shall be by resolutionsadopted by a majority vote.
(b)In case of absence or temporary disability of the manager, the board shalldesignate an acting manager.
(c)The manager shall be chief administrative officer of the joint operatingagency, shall have control of the administrative functions of the jointoperating agency and shall be responsible to the board for efficientadministration of all affairs of the joint operating agency placed in themanager’s charge. The manager may attend meetings of the board and itscommittees and take part in discussion of any matters pertaining to the manager’sduties, but shall have no vote. The manager shall:
(A)Carry out orders of the board and see that all laws of this state pertaining tomatters within the functions of the joint operating agency are duly enforced;
(B)Keep the board advised as to the financial condition and needs of the jointoperating agency;
(C)Prepare an annual estimate for the ensuing fiscal year of the probable expensesof the joint operating agency, and recommend to the board what development workshould be undertaken, and any extensions and additions which should be madeduring the ensuing fiscal year, with an estimate of the costs of suchdevelopment work, extensions and additions;
(D)Certify to the board all bills, allowances and payrolls, including claims duecontractors of public works;
(E)Recommend to the board appropriate salaries of the employees of the office, andscale of salaries or wages to be paid for different classes of service requiredby the joint operating agency;
(F)Hire and discharge clerks, laborers and other employees under the manager’sdirection; and
(G)Perform such other duties as may be imposed by the board. [1973 c.722 §7; 1977c.774 §17; 1979 c.286 §4; 1991 c.331 §51; 1997 c.631 §430; 2001 c.104 §80]
262.075Agency as state political subdivision; eminent domain powers; financialtransaction powers.(1) Each joint operating agency shall be a political subdivision of the Stateof Oregon, and shall be a municipal corporation with the right to sue and besued in its own name. Except as otherwise provided, a joint operating agencyshall have all the powers, rights, privileges and exemptions conferred onpeople’s utility districts.
(2)A joint operating agency shall have the power to acquire, hold, sell anddispose of real and other property, within or without this state, which theboard of directors in its discretion finds reasonably necessary or incident tothe generation, transmission and marketing of electricity, electrical capacityor renewable energy certificates. However, such an agency shall not acquire oroperate any facilities for the distribution of electricity.
(3)A joint operating agency shall have the power of eminent domain which it mayexercise for the purpose of acquiring property; however, a joint operatingagency shall not condemn any properties owned by a publicly or privately ownedutility which are being used for the generation or transmission of electricityor are being developed for such purposes with due diligence, except to acquirea right of way to cross such properties in a manner which will not interferewith the use thereof by the owner.
(4)A joint operating agency shall have the power to enter into contracts, leasesand other undertakings considered necessary or proper by its board, includingbut not limited to contracts for any term relating to the purchase, sale,interchange, assignment, allocation, transfer or wheeling of power with theGovernment of the United States, or any agency thereof, and with any othermunicipal corporation or privately owned utility, or any combination thereof,within or without the state, and may purchase, deliver or receive poweranywhere.
(5)A joint operating agency shall have the power to borrow money and incurindebtedness, to issue, sell and assume evidences of indebtedness, to refundand retire any indebtedness that may exist against the agency or its revenues,and to pledge any part of its revenues. A joint operating agency may borrowfrom banks or other financial institutions such sums on such terms as the boardconsiders necessary or advisable. A joint operating agency may also issue, selland assume bond anticipation notes, refunding bond anticipation notes, or theirequivalent, which shall bear such date or dates, mature at such time or times,be in such denominations and in such form, be payable in such medium, at suchplace or places, and be subject to such terms of redemption, as the boardconsiders necessary or advisable. The issuance and sale of revenue obligationsby a joint operating agency shall be governed by ORS 262.085.
(6)The joint operating agency may apply for, accept, receive and expendappropriations, grants, loans, gifts, bequests and devises in carrying out itsfunctions as provided by law. [1973 c.722 §8; 2007 c.301 §44; 2007 c.895 §15]
REVENUEOBLIGATIONS
262.085Authority to issue revenue obligations; procedure; rights and duties created byrevenue obligations; interest rate; exemption from state taxation; immunityfrom personal liability in connection with issuance. (1) Toaccomplish any of its corporate purposes, a joint operating agency shall havethe power to issue revenue obligations payable from the revenues derived by itfrom its ownership of, or its participation in or contribution to the ownershipor development of, any one or more utility properties. The issuance of suchrevenue obligations shall be governed by the provisions of subsections (2) to(13) of this section.
(2)The board of directors shall issue revenue obligations only by bond resolution.The bond resolution shall specify the corporate purposes for which the proceedsof the revenue obligations shall be expended, declare the cost of carrying outsuch purposes as nearly as possible, contain such covenants, and provide forthe issuance and sale of revenue obligations in such form and amount as thedirectors determine. In declaring such cost, the directors may include thefunds necessary for working capital, reserves, fuel and fuel assemblies,interest during construction and for a reasonable period thereafter, thepayment of organizational and planning expenses, the repayment of advances andsuch other expenses as may be reasonably necessary to carry out the purposes ofsuch resolution. The bond resolution may provide that utility propertiessubsequently acquired or constructed by the joint operating agency shall beconsidered betterments or additions to, or extensions of the specified utilityproperty, whether or not physically connected.
(3)The bond resolution may provide for the establishment of one or more specialfunds, and such funds may be under the control of the board or one or moretrustees. The bond resolution may obligate the joint operating agency todeposit and expend the proceeds of the revenue obligations only into and fromsuch fund or funds, and to set aside and pay into such fund or funds any fixedproportion or fixed amount of the revenues derived by it from any or all of itsutility properties or other corporate activities, as the board in itsdiscretion considers in the best interest of the agency. The board may issueand sell revenue obligations payable as to interest and principal only out ofsuch fund or funds. In creating any special fund for the payment of revenueobligations, the board shall have due regard to the cost of operation andmaintenance of the joint operating agency’s utility properties, and to anyproportion or amount of the revenues previously pledged as a fund for thepayment of revenue obligations, and shall not obligate the agency to set asideinto such special fund or funds a greater amount or proportion of the revenuesand proceeds than in its judgment will be available over and above such cost ofmaintenance and operation and the amount or proportion of the revenuespreviously pledged.
(4)Any revenue obligations and the interest thereon issued against any fundprovided for in subsection (3) of this section shall be a valid claim of theholder thereof only as against such special fund and the proportion or amountof the revenues pledged to such fund, but shall constitute a prior charge overall other charges or claims whatsoever, against such fund and the proportion oramount of the revenues pledged to the fund. Each revenue obligation shall stateon its face that it is payable from a special fund, naming the fund and theresolution creating it, or shall describe the alternate method for the paymentthereof as provided by the resolution authorizing the fund.
(5)Any pledge of revenues or other moneys or obligations made by a joint operatingagency shall be valid and binding from the time that the pledge is made andrecorded in the minute book of the joint operating agency. Revenues or othermoneys or obligations so pledged and later received by a joint operating agencyshall immediately be subject to the lien of the pledge without any physicaldelivery or further act. The lien of the pledge shall be valid and binding againstany parties having claims of any kind in tort, contract or otherwise against ajoint operating agency, irrespective of whether such parties have noticethereof. Neither the resolution nor other instrument by which a pledge iscreated need be recorded except in the minute book of the joint operatingagency, nor shall the filing of any financing statement under the UniformCommercial Code be required to perfect such pledge.
(6)The revenue obligations issued under the provisions of subsections (1) to (5) ofthis section shall bear such date or dates, mature in such amounts at such timeor times, be in such denominations, be in such form, either coupon orregistered or both, carry such registration privileges, be made transferable,exchangeable and interchangeable, be payable in such medium, at such place orplaces, and be subject to such terms of redemption as the board of directorsshall declare in the bond resolution.
(7)Any resolution authorizing any revenue obligation, and any revenue obligation,may provide for and contain such covenants in favor of the purchaser or holderof such obligation as the board of directors shall determine to be necessary,desirable, or convenient in order to secure and protect the obligation and itspurchaser or holder and to enhance the marketability of the obligation. Amongother things, such covenants may define events of default, provide for theappointment of a trustee or receiver in the event of default, and provide thatany such trustee or receiver may take possession and control of any portion orall of the business and property of the joint operating agency upon theoccasion of any event of default.
(8)Notwithstanding any other provision of law, the revenue obligations issued by ajoint operating agency may be sold by the board of directors upon such termsand conditions and at such rate or rates of interest and for such price orprices as it may consider most advantageous to the joint operating agency, withor without public bidding. The board of directors may make contracts for thefuture sale from time to time of revenue obligations by which the contractpurchasers shall be committed to the prices, terms and conditions stated insuch contract, and the board of directors may pay such consideration as itdeems proper for such commitments.
(9)The board of directors may provide by resolution for the issuance of fundingand refunding revenue obligations in order to take up and refund any one ormore series, or portion of a series, of outstanding revenue obligations at suchtime or times at or prior to the maturity thereof as it may determine. Suchrefunding revenue obligations may be sold or exchanged at par or otherwise asthe board of directors determines is in the best interest of the jointoperating agency.
(10)The board of directors may provide in any contract for the construction,acquisition or improvement of utility properties that payment shall be madeonly in outstanding revenue obligations at their par value.
(11)All revenue obligations issued pursuant to this section shall be legalsecurities which may be used by any bank or trust company for deposit with theState Treasurer or a county treasurer or city treasurer, as security fordeposits in lieu of a surety bond under any law relating to deposits of publicmoneys and shall constitute legal investments for trustees and otherfiduciaries other than corporations doing a trust business in this state andfor savings and loan associations, banks and insurance companies doing a trustbusiness in the state. All such revenue obligations and all couponsappertaining thereto shall be negotiable instruments within the meaning of andfor all purposes of the law of this state.
(12)All revenue obligations issued pursuant to this section, the interest thereon,and investment income therefrom shall be exempt from all taxes levied by thestate, its agencies, instrumentalities, and political subdivisions.
(13)Neither the board of directors of the joint operating agency nor any personexecuting any revenue oblig
