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On or before the effective date of the ordinance, the franchisee shall file and thereafter at all times during the life of the franchise keep on file with the City Clerk a corporate surety bond approved by the City Attorney running to the city in the penal sum of one hundred thousand dollars ($100,000), with a surety licensed to do business in California and approved by the City Engineer. The bond shall provide that franchisee shall well and truly observe, fulfill and perform each condition of the franchise and that in case of any breach of condition of the bond the whole amount of the penal sum shall be deemed to be liquidated damages and shall be recoverable from the principal and sureties of the bond. If the bond is not filed prior to the effective date of the ordinance, the award of the franchise may be set aside and the ordinance may be repealed at any time prior to the filing of the bond and any money paid in consideration for the award of franchise shall be deemed forfeited. In the event that the bond, after it has been so filed, shall at any time during the life of the franchise become insufficient, in the sole opinion of the City Council, the franchisee shall renew said bond within twenty (20) days after written notice to do so is provided by the City Engineer. At such time, the bond shall be increased by a rate equal to adjustments to the Consumer Price Index for the Orange-Anaheim-Riverside Area, or successor index thereto, since the effective date of the franchise or the most recent increase to the bond.
(Ord. 1152, passed 5-17-11)
The franchisee shall be liable to the city for damage to city property, including but not limited to, any street, and any other cost incurred by the city caused by franchisee, any of franchisee’s facilities or by any person acting on franchisee’s behalf. The franchisee shall be strictly liable to city for any activity conducted pursuant to or in connection with the franchise. The franchisee’s strict liability shall extend to any consequential damages incurred by the city, and to any costs, including remediation costs, incurred by the city for control or abatement of any environmental condition, release of contaminants, remedial work or any fire or explosion resulting from any activity conducted by or on behalf of franchisee pursuant to the franchise.
(Ord. 1152, passed 5-17-11)
Any damage done directly or indirectly to property of the City of Brea or other public agency by franchisee in exercising any right, power, or privilege under a franchise, or in performing any duty under or pursuant to the provisions of this chapter, shall be promptly repaired by franchisee at its sole cost and expense to as good a condition as it was before such damage was incurred, and to the satisfaction of the City Engineer. If the franchisee, within ten (10) days after receipt of written notice from the city, instructing it to repair such damage, shall fail to commence to comply with such instructions, or, thereafter, shall fail to diligently prosecute such work to completion, the city immediately may do work necessary to carry out said instructions at the cost and expense of the franchisee, which cost and expense, by the acceptance of the franchise, the franchisee agrees to pay upon demand. If such damage constitutes an immediate danger to the public health or safety requiring the immediate repair thereof, the city without notice may repair such damage and the franchisee shall pay all costs incurred.
(Ord. 1152, passed 5-17-11)
ARTICLE III. COMPENSATION
As consideration for the franchise granted, the franchisee shall pay to the city in lawful money of the United States the following:
A. Public utility not transmitting oil or products thereof. The franchisee of any franchise awarded to a public utility not transmitting oil or products thereof, as consideration for such franchise, shall annually pay to the city in lawful money of the United States, within sixty (60) days after the end of each calendar year and during the life of the franchise for each and every year, including the year of granting the franchise, two percent (2%) of the gross annual receipts of the franchisee arising from the use, operation or possession of the franchise; provided, however, that such payment shall in no event be less than one percent (1%) of the gross annual receipts of applicant derived from the sale within the limits of the municipality of the utility service for which the franchise is awarded; or such other amounts as are provided in § 6231 of the Cal. Pub. Util. Code. The city reserves the right to change its fees at five (5) year intervals from the effective date of the ordinance granting the franchise, if following a public hearing, such action is not in conflict with the law of the State of California.
B. Public utility transmitting oil or products thereof.
1. The franchisee of any franchise awarded to a public utility transmitting oil or products thereof, as consideration for such franchise, shall, within sixty (60) days after the end of each calendar year and during the life of the franchise for each and every year, including the year of granting the franchise, annually pay to the city in lawful money of the United States, a fee in the following amounts:
Pipelines with an Internal Diameter of | Base Rate per Lineal Foot |
Pipelines with an Internal Diameter of | Base Rate per Lineal Foot |
0 - 4 inches | $0.088 |
6 | $0.132 |
8 | $0.176 |
10 | $0.220 |
12 | $0.264 |
14 | $0.308 |
16 | $0.352 |
18 | $0.396 |
20 | $0.440 |
22 | $0.484 |
24 | $0.528 |
26 | $0.572 |
28 | $0.616 |
30 | $0.660 |
2. For pipelines with an internal diameter not listed above, the fees shall be in the same proportion to the fees of a twelve (12)-inch-diameter pipe as the diameter of the unlisted pipe is to twelve (12) inches.
The amount of the fee or charge provided for in this subparagraph B.2. shall be multiplied by the Consumer Price Index, all Urban Consumers for the Orange-Anaheim-Riverside Area for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index, All Urban Consumers for the Orange-Anaheim, Riverside Area for June 30, 1989, (1982-84=100.0.).
C. Non-public utility franchises. The franchisee of any franchise awarded to other than a public utility, as further consideration for such franchise including the extension, renewal, or continuation of a previously granted franchise, shall pay to the city in lawful money of the United States the following fees:
1. In the case of an initial grant of franchise, or franchises which extend, renew, or continue previously granted franchises, a base granting fee of seven thousand five hundred dollars ($7,500) for pipelines with a total length of one-quarter (1/4) mile or more or three thousand dollars ($3,000) for pipelines with a total length of less than one-quarter (1/4) mile shall be paid within thirty (30) days after the Council adopts the ordinance and prior to signing the written acceptance of the franchise pursuant to §8.42.060. If at any time during the first five (5) years following the grant of a franchise, additional pipeline is added which will result in a total length of pipeline of one-quarter (1/4) mile or more, an additional four thousand five hundred ($4,500) granting fee shall be required at the same time the footage is added.
2. a. A base annual fee shall be paid within sixty (60) days after the end of each calendar year and during the life of the franchise for each and every year, including the year of granting the franchise, according to the franchise payment period as defined in this chapter, in the following amounts:
Pipelines with an Internal Diameter of | Amount per Linear Foot |
Pipelines with an Internal Diameter of | Amount per Linear Foot |
0 - 4 inches | $0.232 |
6 inches | $0.352 |
8 inches | $0.471 |
10 inches | $0.584 |
12 inches | $0.703 |
14 inches | $0.823 |
16 inches | $0.935 |
18 inches | $1.055 |
20 inches | $1.174 |
22 inches | $1.287 |
24 inches | $1.406 |
26 inches | $1.526 |
28 inches | $1.638 |
30 inches | $1.758 |
b. The base annual rate applicable to pipelines with an internal diameter falling between two (2) incremental size categories shall pay a rate determined by adding the price corresponding to the lower size to a figure computed by multiplying the difference between the higher and lower price times the multiplier. The multiplier will be determined by dividing the difference between the size of the pipe and the lower size category by the difference between the two (2) size categories. In determining the number of feet of pipeline upon which the annual fee will be computed, the greatest number of feet of pipeline covered by the franchise during the calendar year for which payment is due will be utilized. The base annual fee shall be paid no later than sixty (60) days following the end of the calendar year and a penalty at the rate of ten percent (10%) per month or fraction thereof beyond the payment date shall be charged, but in no event shall said penalty exceed fifty percent (50%).
3. The city reserves the right to adjust the base fees established hereunder at any time after the effective date of the ordinance, but the base fees applicable to any one franchise may only be changed five (5) times during the life of that particular franchise.
D. Base construction charges. The holder of the franchise shall pay at the time of installation, relocation, or replacement of any pipeline or other facility covered by the franchise, a base construction charge of two thousand five hundred dollars ($2,500) for each one-half (1/2) mile of pipeline or fractional part thereof installed, replaced or relocated on major streets and one thousand five hundred dollars ($1,500) per one-half (1/2) mile or fractional part thereof, on minor streets. The city reserves the right to change the base fees established hereunder at any time after the effective date of the ordinance, but the base fees applicable to any one franchise may only be changed five (5) times during the life of that particular franchise.
E. Adjustments.
1. The amount of each base fee specified in subparagraphs C. and D. of this section shall be adjusted at the time payment is due by the percentage change in the Consumer Price Index, all Urban Consumers for the Orange-Anaheim-Riverside area (1982-84 = 100), for the period January 1, 2011 to the date which is sixty (60) days prior to the due date of the fee.
2. In no event shall any fee be charged which is less than the base fee amount established by subparagraphs C. and D. of this section.
3. The indices specified in subparagraphs A. and E.1. of this section, are calculated and published by the United States Department of Labor, Bureau of Labor Statistics. If the Bureau discontinues the calculation or publication of the Consumer Price Index, all Urban Consumers for the Orange-Anaheim-Riverside area (1982-84 = 100), and no transposition table is available to convert to another index, then the amount of each annual adjustment in base fees shall be computed by using a comparable governmental index.
F. Publication and administrative issuance costs. The franchisee shall pay to the city within thirty (30) days after receiving a statement therefore, all administrative, legal and other costs incurred by the city in processing the application for a franchise, including but not limited to the preparation of any reports, statements or studies pursuant to the California Environmental Quality Act (Cal. Pub. Res. Code §§ 21000 et seq.) and any similar federal statute, or any successor statute, and for any and all advertising and publishing costs, including the cost of publishing the ordinance, if necessary, incurred in connection with the granting of the franchise.
(Ord. 1152, passed 5-17-11)
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