Carson Municipal Code Part 2 Compensation

[1]

Editor's Note: Prior ordinance history: Ordinance Nos. 78-428, 83-639, 89-887, 91-955, 95-1054.

6830. Public Utilities Transmitting Oil or Products of Oil.

As consideration for the franchise granted, the Franchisee of any franchise awarded to a public utility for a pipeline system transmitting oil or products of oil, including the extension, renewal, or continuation of a previously granted franchise, shall pay to the City the following fees:

A. Base Annual Fee. A base annual fee shall be paid within 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, by multiplying the pipe length expressed in feet by the applicable base rate as follows:

For pipelines with an internal diameter not listed above, the fees shall be in the same proportion to the fees of a 12 inch diameter pipe as the diameter of the unlisted pipe is to 12 inches. The formula used in arriving at the annual fee shall apply to any existing, replacement, modification or extension of the pipeline. A penalty at the rate of 10% per month or fraction thereof beyond 30 days after the payment due date shall be charged, but in no event shall said penalty exceed 50%. Notwithstanding anything else in this Chapter, such penalty shall be charged as Liquidated Damages even without City providing Franchisee with notice and an opportunity to cure under Section 6829.

B. Adjustments.

1. The amount of the fee provided for in subsection A of this Section shall be adjusted at the time payment is due by multiplying the base fee by the Consumer Price Index, All Urban Consumers for the Los Angeles-Anaheim-Riverside Area as published by the United States Department of Labor, Office of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index for June 30, 1989 (June 30, 1989 = 100.0).

2. In no event shall an annual fee be charged which is less than the base annual fee amount established by subsection A of this Section.

3. The indices specified in subsection B.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 Los Angeles-Anaheim-Riverside area (June 30, 1989 = 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.

C. Conversion on Nonpublic Utility to Public Utility. Upon expiration of a nonpublic utility pipeline transmitting oil or products of oil which franchise was effective on December 30, 1989, if the operator of such franchise has converted or seeks to convert to public utility status, all of the following must be established to the satisfaction of the City Council in accordance with Public Utilities Code Section 6231.5(f):

1. Its property is dedicated to the service of the public;

2. Its rates for transportation are established pursuant to tariffs filed with the Public Utilities Commission;

3. Its accounts and records are established pursuant to rules and regulations adopted by the Public Utilities Commission;

4. It has filed an appropriate annual report with the Public Utilities Commission; and

5. Its rates for transportation are just, reasonable, and nondiscriminatory, as evidenced either by an order of the Commission approving those rates, or an application for approval of its rates that is pending with the Commission.

D. Unauthorized Installation. Any newly discovered pipelines or facilities within any public street, highway, road, alley or other public place, that were installed and operating without the proper approvals granted pursuant to Section 6827, will be immediately added to the franchise in accordance with Section 6827 and all fees for such added pipelines or facilities will be charged to Franchisee retroactive to the time the pipelines and facilities were installed.

(Ord. 95-1054 § 1; Ord. 26-2603, 2/17/2026)

6831. Public Utilities Transmitting Substances Other than Oil or Products of Oil.

As consideration for the award of any franchise to a public utility for a pipeline system transmitting substances other than oil or products of oil, including the extension, renewal, or continuation of a previously granted franchise, the Franchisee must pay to the City the following fees:

A. Base Annual Fee. As provided in California Public Utilities Code Section 6231(c), the Franchisee shall pay to the City during the term of the franchise 2% of the gross annual receipts of the Franchisee arising from the use, operation or possession of the franchise; but this annual payment may not be less than 1% of the gross annual receipts of the franchise derived from the sale within the boundaries of the City of the utility service for which the franchise is awarded.

B. Adjustments. The City reserves the right to change the fees imposed by this Section at five year intervals from the effective date of the ordinance granting the franchise, if, following a public hearing, that action is not in conflict with the laws of the State of California.

(Ord. 95-1054 § 1; Ord. 26-2603, 2/17/2026)

6832. Nonpublic Utility.

The Franchisee of any franchise awarded to any entity 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 the following fees:

A. Base Granting Fee. In the case of an initial grant of franchise, or franchises which extend, renew, or continue previously granted franchises, a base granting fee of $17,500 for pipelines with a total length of one-quarter mile or more or $3,800 for pipelines with a total length of less than one-quarter mile shall be paid within 30 days after the Council adopts the ordinance granting the franchise and prior to signing the written acceptance of the franchise pursuant to CMC § 6805. If at any time during the first five years following the grant of a franchise additional pipeline is added which will result in a total length of pipeline of one-quarter mile or more, the $17,500 granting fee shall be required at the same time said footage is added.

B. Base Franchise Fee.

1. A base franchise fee shall be paid by the holder of the franchise to the City for the pipeline area occupied by the pipelines at an annual rate of $4.62 per linear foot. The franchise fee shall be due and payable semi-annually, at the end of each franchise payment period, as defined in CMC § 6803m, during the life of the franchise, including the year of granting the franchise. Said franchise fee shall accrue at the end of each semi-annual period for the pipeline area occupied by the greatest number of feet of pipeline covered by the franchise during the franchise payment period. Pipeline area occupied by any appurtenances such as manholes or vaults shall be computed from the outside dimensions of the structure. The semi-annual fee shall be paid no later than January 1st and July 1st of each calendar year. A penalty at the rate of 10% per month or fraction thereof beyond 30 days after the payment due date shall be charged, but in no event shall said penalty exceed 50%. Notwithstanding anything else in this Chapter, such penalty shall be charged as Liquidated Damages even without City providing Franchisee with notice and an opportunity to cure under Section 6829.

2. The City reserves the right to adjust the base fees established hereunder at any time after the effective date of the ordinance granting a franchise, but the base fees applicable to any one franchise may only be changed three times during the life of that particular franchise up to an increase of no more than 5% for each adjustment, provided that City notifies Franchisee of each such increase in writing.

C. Base Construction Charges. The holder of the franchise shall pay at the time of commencement of installation, relocation, or replacement of any pipeline or other facility covered by the franchise, a base construction charge of $7,760 for each one-half mile of trench or fractional part thereof installed, replaced or relocated on major streets and $5,118 per one-half mile of trench or fractional part thereof, on minor streets or actual cost of inspection, whichever is greater. The City reserves the right to change the base fees established hereunder at any time after the effective date of the ordinance granting a franchise, but the base fees applicable to any one franchise may only be changed three times during the life of that particular franchise up to an increase of no more than 5% for each adjustment, provided that City notifies Franchisee of each such increase in writing.

D. Adjustments.

1. The amount of each base fee specified in subsections A, B and C 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 Los Angeles-Anaheim-Riverside area (1982-84 = 100), for the period July 1, 2023, to the date which is 60 days prior to the due date of the fee.

2. In no event shall any base fee be charged which is less than the base fee amount established by subsections B and C of this Section.

3. The indices specified in subsection D.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 Los Angeles-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.

E. Unauthorized Installation. Any newly discovered pipelines or facilities within any public street, highway, road, alley or other public place, that were installed and operating without the proper approvals granted pursuant to Section 6827, will be immediately added to the Franchise in accordance with Section 6827 and all fees for such added pipelines or facilities will be charged to Franchisee retroactive to the time the pipelines and facilities were installed.

(Ord. 95-1054 § 1; Ord. 26-2603, 2/17/2026)

6833. Proration of Payments.

In the event of abandonment of facilities with the approval of the City as elsewhere in this Chapter provided, or in the event of removal of such facilities by the Franchisee, or in the event of the grant of a franchise with an initial franchise payment period of less than one year, the annual franchise fee required under CMC § 6830A and B shall be prorated for the calendar year in which such removal or abandonment or grant occurs as of the end of the calendar month in which removed, abandoned or granted.

(Ord. 95-1054 § 1; Ord. 26-2603, 2/17/2026)

6834. Records.

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

At all reasonable times, the Franchisee shall permit the City or its duly authorized representative to examine all property of the Franchisee erected, constructed, laid, operated or maintained pursuant to the franchise, together with any appurtenant property of the Franchisee, and to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by the Franchisee or under its control which concern the operations, affairs, transactions, property or financial condition of the Franchisee with respect thereto. Said records shall be made available to the City at a location in the County of Los Angeles.

(Ord. 95-1054 § 1; Ord. 26-2603, 2/17/2026)