§ 1004-2.602. Annual payment.

During the term of a franchise, the grantee shall pay an annual franchise fee as established by resolution of the county. The annual franchise fee shall be paid each year during the term within ninety days after the end of each calendar year during the life of the franchise. Franchise fees under this section constitute payment for the privilege of using county property, and are not in derogation of any other lawful fee or exaction. The franchise and administrative fees charged and collected under authority of this chapter do not include any other permitting or other fees the county may charge. The county reserves the right to change its franchise fees upon the renewal of a franchise at ten-year intervals following the effective date of the resolution granting the franchise, if such action is not in conflict with the law of the state of California. The following limitations apply to the annual franchise fees:

(a)

Public Utility Not Transmitting Oil or Oil Products. If a grantee is a public utility and is not transmitting oil or oil products, the grantee shall pay to the county two percent of the grantee's gross annual receipts that arise from the use, operation or possession of the franchise. This payment shall in no event be less than one percent of the grantee's gross annual receipts derived from sales within the unincorporated portion of the county, in accordance with California Public Utilities Code Section 6231.

(b)

Public Utility Transmitting Oil or Oil Products. If a grantee is determined by the public utilities commission to be a public utility transmitting oil or oil products, the grantee will be charged an annual fee, based on the internal diameter of the pipeline, in an amount calculated pursuant to California Public Utilities Code Section 6231.5.

(c)

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, or on property owned by the county.

(d)

Other Pipeline Franchises. If a grantee is awarded a pipeline franchise for any pipeline other than those specified in subsections (a), (b), or (c) of this section, or for the extension, renewal, or continuation of a previously granted franchise, the grantee shall pay to the county two percent of the grantee's gross annual receipts that arise from the use, operation or possession of the franchise. This payment shall in no event be less than one percent of the grantee's gross annual receipts derived from sales within the unincorporated portion of the county, in accordance with California Public Utilities Code Section 6231.

(e)

Extension and Renewal. If a grantee with a previously granted franchise to build and operate a pipeline system transmitting oil or gas or their products seeks to renew or extend a franchise that was in effect on September 1, 1989, the grantee will be charged the fee computed pursuant to California Public Utilities Code Section 6231.5(c).

(Ord. No. 2013-19, § II, 8-13-13)