CHAPTER X
UTILITIES

   Section 1.   UTILITY DEPARTMENTS: There is hereby created a utility department of electric service of the City of Canby and a utility department of water service of the City of Canby. Each department shall be responsible for the development, production, purchase and distribution of all water or electric revenue producing utilities of the City.

   Section 2.   WATER DEPARTMENT. The City Council shall have jurisdiction, control and management of the Water Department and all of its operations and facilities. The City Council shall have all the powers and duties necessary to construct, acquire, expand and operate the water system, and to do any and all acts or things that are necessary, convenient or desirable in order to operate, maintain, enlarge, extend, preserve and promote an orderly, economical and businesslike administration of the Water Department. The City Council may assign or delegate all or a portion of its powers and duties over the Water Department to the Canby Utility Board; provided, however, that the City Council shall retain ultimate jurisdiction, control and management of the Water Department and its operations and facilities.

   Section 3.   UTILITY BOARD. There is hereby created the Canby Utility Board of the City (hereinafter referred to as the Board), which shall have exclusive jurisdiction, control and management of the Electric Department and all its operations and facilities. The Board shall have all the powers and duties possessed by the City to construct, acquire, expand and operate the electric system, and to do any and all acts or things that are necessary, convenient or desirable in order to operate, maintain, enlarge, extend, preserve and promote an orderly, economical and businesslike administration of the electric system. The Board shall operate as a separate unit of City government and except as provided in this Charter, both the Board and the Electric Department shall be free from the jurisdiction, direction and control of other City Officers and of the City Council. The Board may sue and be sued in its own name. All damage claims arising from the operation of the Board and the Electric Department shall be the responsibility of and be liquidated by the Board.

   Section 4.   ORGANIZATION OF THE CANBY UTILITY BOARD.   (a)   Number and Qualification of Board Members. There shall be five (5) members of the Canby Utility Board appointed by the Mayor and confirmed by a majority of the Canby City Council. They shall hold office until their successors are appointed and qualified. They are subject to removal at any time by the Mayor and with the approval of a majority of the Council members with or without cause and with or without notice. At the first Council meeting after the first of the next month after this Charter takes effect, two (2) Board members shall be appointed to serve terms of three years, two (2) Board members shall be appointed to serve terms of two years, and one (1) Board member shall be appointed to serve a term of one year. Their successors shall be appointed for terms of three years. No Board member may serve more than two successive terms. No person shall be eligible for appointment as a Board member or entitled to hold such office unless at the time of appointment and continuing thereafter, such person is a qualified elector within the meaning of the State Constitution and has resided in the City of Canby during the six months immediately preceding appointment and continues to reside in the City for the term of the appointment. The City Council shall be the final judge of the qualifications and appointment of Board members, but no Councilmember or Mayor (during their term of office) shall be eligible to appointment as a member of that Board.

   (b)   Vacancies. Vacancies shall be filled for the unexpired term by the Council. No vacancy in the Board shall impair the right of remaining Board members to exercise all the powers of the Board to transact its business.

   (c)   Compensation. The compensation for the services of each Board member shall be whatever amount the Board fixes.

   (d)   Organization of the Board. Within ten (10) days after their appointment and at its first meeting in January each year thereafter, the Board members shall elect one of their number as Chairman. If the Chairman is absent at any meeting, a pro-tem shall be appointed by the members present. The Chairman shall preside over all meetings of the Board and in doing so, shall, so far as possible, follow Roberts Rules of Order. The Chairman shall, with the approval of the Board, sign all Resolutions and Orders of the Board and all notes, contracts, deeds, mortgages, bonds, and other agreements of the Board. No action shall be taken by the Board except by the affirmative vote of the majority of the members.

   (e)   Quorum. Three (3) Board members shall constitute a quorum.

   (f)   Secretary-Clerk. The Board shall appoint and fix the comensation of a Secretary-Clerk who is not a member of the Board and who shall serve at the pleasure of the Board and is subject to removal at any time and for any reason. Before entering upon the duties of the office, the Secretary-Clerk shall post a bond in such amount and with such surety or sureties as the Board may approve and to assure the faithful performance of duties. The Secretary-Clerk shall attend all meetings of the Board unless excused therefrom by the Board, keep an accurate record of its proceedings in a book provided for that purpose, sign the approved minutes of its meetings and may, with approval of the Board, sign or cosign checks for disbursement of funds.

   (g)   Meetings. The Board shall hold a regular meeting at least once a month at a time and place to be fixed by the Board. Special meetings may be called by the Chairman of the Board, or by two members of the Board. Notice of all meetings shall be given by the Secretary-Clerk in the manner and for the time required for public meetings by ORS 192.640. All regular or special meetings of the Board shall be open to the public.

   Section 5.   ORGANIZATION OF THE ELECTRIC DEPARTMENT.   (a)   Employees. The Canby Utility Board shall have the authority to employ a General Manager and such supervisors, bookkeepers, attorneys, laborers, mechanics and other employees, as may be determined, and fix compensation thereof, and discharge the same at pleasure, and for any reason.

   (b)   Compensation. The Board shall have the authority to fix compensation of the Clerk and other employees of the Board and change the same from time to time.

   Section 6.   POWERS AND DUTIES OF THE CANBY UTILITY BOARD.   (a)   Real Estate and Contracts. The Board, in the efficient and economical operation of the Electric Department, both inside and outside the City limits, may:

   (1)   purchase and sell electric power and energy and services to public and private corporations and to other consumers;

   (2)   construct plants, transmission lines and other facilities:

   (3)   purchase real estate and franchises in its name; and

   (4)   enter into all contracts, leases and agreements in furtherance thereof.

   (b)   Extension of Services. The Board may adopt regulations governing extension of services of the Electric Department both inside and outside the City limits. The regulations shall provide the conditions under which the extensions shall be made to render them compensatory and shall provide that each extension project shall, when completed, become the property of the Electric Department whether on public or private property. The Board may provide for the form of refunds where advances by the persons benefited are necessary to make extensions compensatory.

   (c)   Joint Operations with Others. The Board may contract with any public or private corporation or any individual, both inside and outside the City limits:

   (1)   for the joint use of poles and other property belonging either to the Electric Department or to the other contracting party or jointly to both parties;

   (2)   for the joint acquisition of real property and franchises and the joint financing, construction and operation of plants, transmission lines and other facilities, whereby any property acquired may become the property of both the Electric Department and the other contracting party; and

   (3)   for the purchase of energy.

   (d)   Eminent Domain. The Board may enter upon any land or water for the purpose of making surveys and may exercise the right of eminent domain on behalf of the City whenever public necessity or convenience requires.

   (e)   Use of Thoroughfares for Utility Installations. Canby Utility may use the ground over, under or along any road, railroad, highway, street, sidewalk, thoroughfare or alley in the operation of the Electric Department, but shall in all cases and subject to the applicable general regulation of the City, cause the surface of the public way to be restored in its usual condition.

   (f)   Rates. The Board shall fix rates to be charged for electricity sold and services rendered by the Electric Department. Rates shall be fair, reasonable and compensatory and shall be uniform for all consumers within the same class, but different rate schedules may be applied to different classes of consumers as determined by the Board. Rates shall be sufficient to pay all operating and maintenance costs of the Electric Department and its operations and all bond interest and bond redemption costs. The Board may require reasonable deposits for security for payment of charges for electric services and may provide for the return of deposits when satisfactory consumer credit has been established. Any proposed change in rates and the notice of a public hearing thereon shall be advertised once a week for two successive weeks in a newspaper having a general circulation in the City of Canby. Such notice shall state the proposed rate change, the reasons therefor and the time and place of the public hearing which shall be held within ten (10) days after the last publication of such notice. At the public hearing the Board shall discuss the matter and consider any objections or recommendations. The Board is not bound, however, by any public remonstrances or objections to its proposed rate change.

   (g)   Authority for Expenditures. No money shall be drawn from the funds of the Department nor shall any obligation for the expenditure of money be incurred except as authorized by the Board. No claim against the Department shall be paid unless evidenced by a voucher approved by the General Manager or by some other employee designated by him.

   (h)   Bond Issues. The Board may authorize the sale and issuance of revenue bonds necessary to finance the acquisition, construction, reconstruction, improvements and extensions of the utility system. The Board has the power to provide funding for the operation, maintenance or expansion of existing facilities. A vote of the registered voters will be required for any exploration, construction or development of energy sources over the amount of that department's gross revenues for the preceding fiscal year.

   (i)   Short Term Loans. The Board may borrow money for periods not to exceed five (5) years and may issue negotiable notes, payable from the revenues of the Electric Department, as evidence of the loans. Total loans outstanding at any one time for the Electric Department shall not exceed fifty percent (50%) of that department's gross revenue for the preceding fiscal year.

   (j)   No Power to Tax. The Board shall have no power or authority to levy ad valorem taxes on any taxable property; however, the City Council may, when in its judgment it is deemed necessary or advisable, levy such taxes for the use and benefit of said Board or for the joint use and benefit of the City and said Board.

   Section 7. ANNUAL ACCOUNTING AND BUDGET. The Canby Utility Board shall prepare a budget for each fiscal year and file a copy of such budget with the City Council prior to July 1. The Board shall make an annual accounting to show the financial condition of the Electric Department prepared according to generally accepted public utility accounting principles, and file a copy of the same with the City Council each year.

   Section 8. GENERAL PROVISIONS.   (a) Disposition of Public Utilities. The Canby Utility Board shall have no authority to cease to operate or to sell, lease or abandon, or in any other way dispose of the electric utility system and department controlled by it, without the prior express written approval of the City Council and the approving vote of a majority of the votes cast by the registered voters of the City at a general or special election called by the Council and held for that purpose.

   (b)   Existing Obligation. Contracts, obligations and bond issues relating to the electric utility system of the City legally incurred, approved or authorized prior to the taking effect of this Charter provision shall not be impaired and shall be binding upon the Board insofar as they apply to the Electric Utility Department.