Los Angeles County Municipal Code Part 2 Compensation

As consideration for the franchise granted, the franchisee shall pay to the county in lawful money of the United States the following:

A.

General.

In the case of an initial grant of franchise, or on franchises which extend, renew or continue previously granted franchises, the franchisee shall pay to the county a granting fee of $5,000.00 within 30 days after the board adopts the ordinance granting the franchise;

Provided, however, that if the pipe or pipeline to be laid or constructed pursuant to the franchise is one-fourth mile or less in length, or the franchise extends, renews or continues a previously granted franchise to lay or construct a pipe or pipeline one-fourth mile or less in length, the franchisee shall pay to the county a granting fee of $500.00 within 30 days after the board adopts the ordinance granting the franchise.

B.

Public Utility or Mutual Water Company. Except as provided in subsection C of this section, the franchisee of any franchise awarded to a public utility or mutual water company, as further consideration for the franchise hereby granted, shall pay to the county, in lawful money of the United States, two percent of the gross annual receipts of the franchisee arising from the use, operation or possession of the franchise.

If the franchise grants a right not theretofore in existence and is for the purpose involving the furnishing of any service or commodity to the public or any portion thereof, no percentage shall be paid for the first five years succeeding the effective date of the franchise, but thereafter such percentage shall be payable annually during the life of the franchise, according to the "franchise payment period" as defined in Section 16.52.020, and shall be due within 60 days after the end of each calendar year;

Provided, however, that if the franchise be a renewal, continuation or extension of a right already in existence, the payment of said percentage of gross receipts shall accrue from the effective date of the ordinance granting the franchise and shall be due within 60 days after the end of each calendar year.

As used above, the phrase "two percent (2%) of the gross annual receipts of the Franchisee" shall be construed as that similar phrase found in Section 6006 of the Public Utilities Code of the state of California.

The county reserves the right to change its fees at five-year intervals from the effective date of the ordinance granting the franchise, after a public hearing determines good cause is found and such action is not in conflict with the law of the state of California.

C.

Others.

The franchisee of any franchise awarded to any others, including a public utility or mutual water company granted or exercising a franchise for a purpose not involving the furnishing of any service to the public or any portion thereof, as further consideration for the franchise hereby granted, including the extension, renewal or continuation of a previously granted franchise, shall pay to the county in lawful money of the United States, 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 Section 16.52.020, a "base annual fee" computed as follows:

a.

Pipe of eight inches or less in nominal internal diameter the annual fee shall be $.12 per linear foot;

b.

Pipe greater than eight inches in nominal internal diameter the annual fee shall be $.12 per linear foot for the first eight inches of nominal internal diameter, plus $.02 per nominal internal-diameter inch for each inch or fraction thereof over 8 inches.

The amount of each annual payment of the base annual fee shall be revised every year from the effective date of the ordinance granting the franchise, at the time of payment, in accordance with the following formula:

a.

The "Wholesale 'Producer' Price" Index (1967 H) "All Commodities," established by the United States Bureau of Labor Statistics, Department of Labor, as it stands on the date the franchise is granted, shall be taken as the "base index" upon which the above franchise fee is computed.

b.

If said Index for the calendar month ending two months prior to the month in which payment to the county is due shall stand at other than said "base index," then the rate of payment to the county shall vary from said "base annual fee" in direct proportion as said Index has increased from the "base index," as hereinabove defined; provided, however, that in no event shall the amount of the annual payment be less than the "base annual fee" as set forth herein.

c.

If said Bureau shall revise the said Index, the parties hereto shall accept the method of revision or conversion recommended by said Bureau.

d.

If said Bureau shall discontinue the preparation of the said Index using prices prevailing in the year 1967 as a base of 100, and if no transposition table prepared by said Bureau is available, applicable to said year of 1967, then the amount of each annual payment shall be computed by reference to such other price index as may be chosen by county, and the county shall be the sole judge of comparability of successive indices.

D.

Initial Construction Charges and Other Fees. In addition to the foregoing annual payments, the franchisee shall:

Pay county road department within 60 days after the end of each calendar year, during the life of the franchise, an initial construction charge calculated at a rate of $100.00 per mile or fraction thereof for all new mains laid during the preceding year;

Pay county auditor-controller during the life of the franchise, an annual fee of $25.00 per pole-mile or portion thereof, and $25.00 per mile or portion thereof of underground conduit for telephone or telegraph lines maintained under the franchise. Said fee shall be due within 60 days after the end of each calendar year.

(Ord. 11696 § 1 (part)—Part 1 Art. 2 § 201, 1978.)

In the event of abandonment of facilities with the approval of the county as elsewhere in the ordinance provided, or in the event of removal of such facilities by the franchisee, the payments otherwise due the county for occupancy of the roads or highways by such facilities shall be prorated for the calendar year in which such removal or abandonment occurs as of the end of the calendar month in which removed or abandoned.

(Ord. 11696 § 1 (part)—Part 1 Art. 2 § 202, 1978.)

In the event franchisee fails to make the payments for the franchise or the payments due under subsection D of Section 16.52.200 above, on or before the dates due as hereinabove provided, franchisee shall pay as additional consideration the following amount: A sum of money equal to 10 percent of the amount due.

(Ord. 11696 § 1 (part)—Part 1 Art. 2 § 203, 1978.)

A.

Franchisee shall keep and preserve, for a period of five years, subsequent to the date of the most recent franchise fee determination as ascertained by an audit made by the county or on its behalf, all records necessary to determine the amount of such franchise fees or other payments due under subsection D of Section 16.52.200 above. Franchisee, upon demand by county, shall make such records available for inspection by county or its authorized representative, within the county of Los Angeles.

B.

At all reasonable times, the franchisee shall permit county, 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 relate to the operations, affairs, transactions, property or financial condition of the franchisee with respect to the franchise.

(Ord. 11696 § 1 (part)—Part 1 Art. 2 § 204, 1978.)