HomeMy WebLinkAboutMINUTES - 11281995 - C67 TO: BOARD OF SUPERVISORS
Contra
FROM: Phil Batchelor, County Administrator �~ s
Costa
November 28, 1995 *' County
DATE: rrl.cuJ
SUBJECT: STATE IMPOSED FRANCHISE FEE SURCHARGE ON GAS AND ELECTRICITY
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
1. ACKNOWLEDGE the establishment of a franchise fee surcharge on customers of gas and
electricity provided from non-utilities by the State of California, under Chapter 233 of the
Public Utilities Code,and acknowledge that the Public Works Department has been assigned
the responsibility of collecting the fee.
BACKGROUND:
On October 10, the Board of Supervisors requested information involving the procedures for
collecting a franchise fee on customers of gas and electricity provided by non-utilities. Currently,
the county imposes a franchise fee on utilities with pipelines running along county right of ways.
The new fee on non-utilities,who use the pipelines and are not assessed a fee, was designed to plug
a loophole in the law.
CONTINUED ON ATTACHMENT: YES SIGNATURE: lJ�`
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE (S):
ACTION OF BOARD ON November 287-795 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED November 28 , 1995
Contact: 4RVISORS
TCHELOR,CLERK OF THE BOARD OF
CC: Public Works Department AND COUNTY ADMINISTRATO
David Ninomiya, w/Ninomiya Nursery Co.
Page 2
The intent of Chapter 233 of the Public Utilities Code,which authorizes the fee, is presented below.
. . . the Legislature finds and declares that changes in the public utility regulatory
environment have inadvertently provided for the potential erosion of the franchise fee base upon
which local government has become quite dependent for its financial stability. Further, the
Legislature has determined that there exists the possibility that these same regulatory changes may
not ensure equitable treatment between customers purchasing gas or electricity from a utility and
customers purchasing gas or electricity from other sources. Therefore,the purpose of this act is to
provide protection for the financial integrity of local government and to ensure that all customers
purchasing gas or electricity who transport gas or electricity on transmission systems that are subject
to a franchise agreement share equitably in the burden of compensating local government for the
private use of public lands.
Article 4, section 63540) of the chapter authorizes the counties and cities to collect an interim
surcharge until utilities like P.G.&E.,begin billing energy transporters using their pipelines. Under
this authority, the County has billed 23 customers for the period of August, 1993 through March,
1994. For purchases on and after April, 1994,the customers will be billed by the utilities.
Public Works has been assigned the responsibility of administering the County Pipeline franchise
fee revenues for many years. This one-time fee was a logical adjunct to their current responsibility.
Al revenues collected are deposited in the General Fund, account 9120 of Budget Unit 0005 -
General County Revenues.