Article III

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:

Text read from an image; its layout may differ:
Pipelines with an Internal Diameter of Base Rate per Lineal Foot
0 - 4 inches $0.088
6 inches $0.132
8 inches $0.176
10 inches $0.220
12 inches $0.264
14 inches $0.308
16 inches $0.352
18 inches $0.396
20 inches $0.440
22 inches $0.484
24 inches $0.528
26 inches $0.572
28 inches $0.616

Text read from an image; its layout may differ:
Pipelines with an Internal Diameter of Base Rate per Lineal Foot
30 inches $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 OrangeAnaheim-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:

Text read from an image; its layout may differ:
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

Text read from an image; its layout may differ:
Pipelines with an Internal Diameter
of Amount per Linear Foot
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, 5-17-2011)

The franchisee shall keep and preserve for a period of five (5) years subsequent to the date of the most recent franchise fee determination all the records necessary to determine the amount of such franchise fee.

(Ord. 1152, 5-17-2011)

Article IV

Construction

Pipelines and all other facilities shall be constructed and maintained in a good workerlike manner in conformity with applicable law.

(Ord. 1152, 5-17-2011)

New installation or replacement of pipelines and all other facilities necessary for the installation, operation, maintenance, and safety of pipelines and conduits shall be laid and maintained pursuant to applicable law. All such installations or replacements shall be reviewed by the City Engineer as to the most desirable location in the streets of the city and his or her decision shall be final and binding on the franchisee subject to appeal as provided in this chapter. (Ord. 1152, 5-17-2011)

Where the provisions of any applicable law, which shall be in force at the time, require the issuance of an excavation, encroachment or other type of permit, the franchisee shall not commence any excavation or encroachment work under the franchise until it shall have obtained such permits, except in cases of emergency affecting public health, safety or welfare or the preservation of life or property, in which case the franchisee shall apply for such permits not later than the next business day. The franchisee’s application for a permit under applicable law shall show the length and proposed location of the pipeline and/or other facility intended to be installed, and such other facts as the Department may require. The franchisee shall pay any and all permit inspection fees to the Department. (Ord. 1152, 5-17-2011)

• A. The work of constructing, laying, replacing, maintaining, repairing or removing all pipelines and other facilities authorized under the provisions of this chapter in, over, under, along or across any street shall be conducted to minimize hindrance to the use of the street for purposes of travel, and as soon as such work is completed, all portions of the street which have been excavated or otherwise damaged thereby shall promptly and in a workerlike manner be repaired, replaced or restored and placed in as good condition as the same as before the commencement of such work. For streets that have been rehabilitated within five (5) years prior to the work the city shall require the resurfacing, or other treatment, of the entire width of the street or streets as directed by the City Engineer. For those streets that have not been rehabilitated by the city within five (5) years prior to the work the restoration shall be in full compliance with the City of Brea excavation requirements. All restoration, repair, or replacement work shall be done to the satisfaction of the Public Works Department at the expense of the franchisee in accordance with all applicable law.

• B. In the event that the franchisee shall fail or neglect to make such highway repair, replacement, or restoration work, then ten (10) days after notice therefor has been given franchisee by the City Engineer, the city may repair, replace or restore the highway at the expense of franchisee. The franchisee shall pay to the city the cost of performing such work. The amount so chargeable shall be the direct cost of such work plus the current rate of overhead being charged by the city for reimbursable work. (Ord. 1152, 5-17-2011)

• A. In the event that the franchisee fails to perform the work within the time specified in the permit, the city may require the franchisee to pay to the city five hundred dollars ($500) per day as liquidated damages for each day construction extends beyond the time specified in the permit. This provision shall not apply should the franchisee establish to the reasonable satisfaction of the City Engineer that the franchisee was prevented from performing by reason of the adverse effects of an act of God, war, riot, civil commotion, strikes, fire, flood, earthquake, extreme weather, or other similar cause beyond the reasonable control of franchisee. In such case, the required date for performance shall be extended for a period equal to the delay caused by such adverse effects, unless otherwise agreed. Such extension of time shall be documented in writing by the City Engineer.

• B. Whenever the franchisee fails to complete any work required by the terms and conditions of the franchise, and the permits issued thereunder, within the time limits required thereby, the city may complete or cause to be completed the work, to the extent permitted by and in compliance with applicable law, at the expense of the franchisee. The franchisee agrees to pay to the city the cost of performing such work. The amount so chargeable to franchisee shall be the reasonable direct cost of said work plus the current rate of overhead being charged by the city for reimbursable work.

• (Ord. 1152, 5-17-2011)

Upon the completion of the construction of any pipelines or other facilities constructed pursuant to the franchise, the franchisee shall submit a statement to the City Engineer, identifying the permit or permits issued by the Department, the total length of pipeline, pipeline material, diameter of pipeline, the construction of which was authorized under such permit or permits, the total length of pipeline or other facility actually laid, and as-built drawings. (Ord. 1152, 5-17-2011)

The franchisee will provide at its sole cost such shoring or other support as shall be reasonably required to support, maintain, and protect franchisee’s facility in connection with any storm drain or sewer constructed by the County of Orange, Los Angeles County Flood Control District or Orange County Sanitation District or in connection with any facility constructed by city, or by any successor agency of any of these agencies. (Ord. 1152, 5-17-2011)

Within ninety (90) days following the date in which any facilities have been laid, removed or abandoned under the franchise, the franchisee shall file a map or maps with the Department showing the location, depth, and size of the facilities so laid, removed or abandoned. (Ord. 1152, 5-17-2011)

The franchisee shall have the right to construct, maintain and repair such traps, manholes, conduits, valves, appliances, attachments and other facilities as authorized in the ordinance granting the franchise and as may be necessary or convenient for the proper maintenance and operation of the pipelines under said franchise, and the facilities shall be kept flush with the existing grade and/or surface of the street and so located as to conform to applicable law, including any ordinance, rule or regulation of the city, or of any permit issued by the Department in regard thereto and shall not interfere with the use of the street for travel. The franchisee shall have the right, subject to such ordinances, rules or regulations as are now or may hereafter be in force, to make all necessary excavations in said streets for the construction, maintenance and repair of the facilities; provided, however, that the franchisee shall first obtain an excavation permit from the Department for doing any such work. (Ord. 1152, 5-17-2011)

The franchisee shall obtain an excavation permit from the Department to perform repair work. In the event of a condition that could cause a threat to public health or safety and requires emergency repair work, the franchisee shall proceed with the repairs and notify the Department as soon as possible, not later that the next business day. (Ord. 1152, 5-17-2011)

If, in the sole discretion of the City Engineer, subject to appeal to the Council pursuant to this chapter, the franchisee’s facilities conflict in any way with the construction, relocation or repair of any city facility or storm drain or sewer owned by the County of Orange, Orange County Flood Control District or Orange County Sanitation District, or any successor agency of any of these entities, the franchisee shall relocate its facility to the reasonably nearest alternative location or other location mutually agreeable to the city and the franchisee necessary to accommodate the relocation or repair of the storm drain, sewer or city facility, either permanently or temporarily, as is determined by the City Engineer to be required within the time required by the City Engineer. Such relocation shall be accomplished at the franchisee’s sole expense. If the franchisee fails to relocate its facility within the required time, or to pave, surface, grade repave, resurface or regrade, the city, to the extent permitted by and in compliance with applicable law, may cause the work to be done and shall keep an itemized account of the entire cost thereof, and the franchisee shall reimburse the city or other public entity for such cost within thirty (30) days after presentation to the franchisee of an itemized account of such costs. The franchisee shall hold harmless and indemnify the city, its officers and employees and other public agency, if any, from any liability which may arise or be claimed to arise from the moving, relocation, cutting, or alteration of any of the franchisee’s facilities, or the turning on or off of water, oil, or other liquid, gas, or electricity required to be accomplished by city or any other public agency as a result of the franchisee’s failure to relocate the facility by the date established by the city or other public agency. The franchisee shall also be liable for any consequential damages incurred by the city or other public agency arising from the franchisee’s failure to timely complete the work required by this chapter. (Ord. 1152, 5-17-2011)