HomeMy WebLinkAboutRESOLUTIONS - 08162013 - 2013/305EXHIBIT A
CONTRA COSTA COUNTY PUBLIC WORKS DEPARTMENT
PIPELINE FRANCHISE FEES
$5,000 Deposit for Security/Administration Deposit
Each franchisee’s $5,000 administrative deposit will be used to pay costs incurred by the County in connection
with administering pipeline franchises, which costs include, without limitation, staff time spent processing
pipeline franchise applications, fees incurred verifying acceptances, issuing required encroachment and
drainage permits, collecting and verifying payments, maintaining accurate records that document the type and
location of the franchise property, and providing non-routine services such as transferring a franchise,
replacing surety bonds, and any other administrative tasks associated with franchises.
Several different staff positions may be involved in the administration of pipeline franchises based on the level
of work. As shown below, the Public Works Customer Services Coordinator currently administers pipeline
franchises, with assistance from the following classifications: Administrative Services Assistant II, Senior Real
Property Technical Assistant, and Clerical - Senior. The amount of time spent on administration of pipeline
franchises is dependent on the task required, such as establishment of a new franchise, transfer of a franchise,
replacement of surety bonds, etc.
The current hourly costs including benefits and indirect costs for staff personnel administering pipeline
franchises are set forth below.
Position Rate per hour
Customer Services Coordinator: $180.44
Administrative Services Assistant II: $113.57
Sr. Real Property Technical Asst: $ 93.87
Clerical – Senior Level: $ 85.97
Estimated Costs Associated with Franchise Administration:
Hourly Number
Rate of Hours Total
Application of a new franchise:
Customer Services Coordinator $180.44 x 5 = $ 902.20
Administrative Services Asst. II $113.57 x 15 = $1,703.55
Sr. Real Property Technical Asst. $ 93.87 x 4 = $ 375.48
Clerical – Senior Level $ 85.97 x 4 = $ 343.88
Estimated Total $3,325.11
Transfer of a franchise:
Customer Services Coordinator $180.44 x 5 = $ 902.20
Administrative Services Asst. II $113.57 x 15 = $1,703.55
Sr. Real Property Technical Asst. $ 93.87 x 4 = $ 375.48
Clerical – Senior Level $ 85.97 x 4 = $ 343.88
Estimated Total $3,325.11
Replacement of surety bonds:
Customer Services Coordinator $180.44 x 1 = $ 180.44
Administrative Services Asst. II $113.57 x 8 = $ 908.56
Sr. Real Property Technical Asst. $ 93.87 x 5 = $ 469.35
Estimated Total $ 1,558.35
Estimated Costs Associated with Franchise Administration: (cont.)
Hourly Number
Rate of Hours Total
Verification of insurance:
Customer Services Coordinator $180.44 x 1 = $180.44
Administrative Services Asst. II $113.57 x 5 = $567.85
Sr. Real Property Technical Asst. $ 93.87 x 2 = $187.74
Estimated Total $936.03
Annual Franchise Fee Payments:
The majority of pipeline franchise fees are established by statute. The Board of Supervisors has discretion to
set the fees for non-public utility franchises transmitting industrial gas, oil or oil products. If a grantee is a non-
public utility operating a pipeline system transmitting industrial gas, oil or oil products, the County will establish,
on an individual basis in the resolution granting the franchise, the annual franchise payment for the pipeline
franchise, including the extension, renewal, or continuation of a previously granted franchise. The annual
franchise payment will be:
(1) an amount equal to a specified percentage agreed to by the applicant and the County of the gross
annual receipts of the applicant arising from the use, operation, or possession of the franchise; or
(2) an amount agreed to by the applicant and the County; or
(3) an amount computed by multiplying the sum of one-half of the nominal internal diameter of the pipe,
expressed in inches, by the number of lineal feet of the pipe within the public streets, ways, alleys, or
other public places within the unincorporated portion of the County.
Abandonment Fees
In addition to the administrative costs deposit and the annual franchise payment, a grantee shall also pay an
abandonment fee in order to abandon in place all or part of its facilities upon approval by the Board of
Supervisors. The abandonment fees set forth in the resolution are as follows:
Pipelines With An Internal Diameter of (in inches): Amount Per Lineal Foot
0-12 $15.00
14-18 $22.00
20-30 $28.00
Upon an application by a franchisee to abandon pipes in place, the road commissioner, in his or her sole
discretion, shall determine whether a pipeline company may abandon pipelines in place or whether removal of
the abandoned pipe is necessary. If the road commissioner recommends permitting abandonment of pipes in
place and the Board of Supervisors authorizes abandonment, the franchisee shall pay the related
abandonment fee. If a pipeline company has paid the abandonment fee and the County later requires removal
of the abandoned pipeline but is no longer a franchisee or available to pay for the cost of removal, the amount
abandonment fee is designed to cover the County’s costs of removal. If the pipeline company is still a
franchisee and is available to remove previously abandoned pipelines, the amount of its abandonment fee paid
will be credited against its cost of removal.
County costs to remove abandoned pipelines vary based on the type, size and depth of pipe. The fees listed
above are a reasonable estimate of costs for County staff to perform the work or contract with a company to
remove abandoned pipe if the company that installed the pipe is no longer in business and able to fulfill its
obligations to remove the abandoned pipelines.
Contra Costa County
Form of Franchise Performance Bond
Bond No.:
Premium:
Any claim under this Bond should
be sent to the following address:
[Surety Name and Address]
KNOW ALL BY THESE PRESENTS:
That we, [insert legal name of franchise grantee], a [corporation, limited liability company] organized
and existing under the laws of the State of [insert state of formation] (“Principal”), and [insert name of
surety / bonding company], a [corporation, limited liability company] organized and existing under the
laws of the State of [insert state of formation] (“Surety”), and authorized to transact surety business in
the State of California, are held and firmly bound unto Contra Costa County (“Obligee”), in the sum
Dollars ($ ) lawful money of the United States of America, for the payment of which
sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successor and
assigns, jointly and severally, firmly by these presents.
WHEREAS, The Board of Supervisors of Contra Costa County, California, pursuant to County
Ordinance No. 2013-19, adopted August 13, 2013 (the “Ordinance”), and County Resolution No.
20__/__, adopted _____, 20__, (the “Resolution”), has granted a franchise to Principal, giving it the
right from time to time to construct, maintain, operate, repair, renew, and remove or abandon in place,
certain pipelines, as more particularly described in the Ordinance and the Resolution.
NOW THEREFORE, THE CONDITION of the above obligation of the Principal and the Surety is such
that, if the Principal shall well and truly observe, fulfill, and perform each term and condition of the
franchise required to be performed by it, at the times and in the manner specified therein, then the
above obligation of the Principal and the Surety shall be null and void, otherwise it shall remain in full
force and effect.
PROVIDED, that if any action is commenced on this bond by the Obligee, in addition to the sum
specified above, the Principal and Surety, their heirs, executors, administrators, successors and
assigns, jointly and severally, shall be obligated to pay to the Obligee all costs, attorney’s fees and
other litigation expenses incurred by the Obligee in collecting moneys due under the terms of this
bond.
SIGNED AND SEALED, this day of , 20__.
(SEAL)
By: By:
(Name of Principal) (Name of Surety)
By: By:
Name: Name:
Title: Title: