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.

Granting Fee.

In the case of an initial grant of franchise, or on franchises which extend, renew or continue in existence 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.

Annual Payment. Except as provided in subsection C of this section, the franchisee, 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; provided, however, that such payment shall in no event be less than one percent of the gross annual receipts of the franchisee derived from the sale within the franchise area of the commodity or service for which the franchise is awarded. Such percentage shall be paid annually during the life of the franchise, including the year of granting the franchise.

C.

Annual Payment For Oil Pipelines.

The franchisee of any franchise awarded to a nonpublic utility for oil or products thereof, as further consideration for the franchise hereby granted, shall pay to the county, in lawful money of the United States, 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 8 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 100)" "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 franchise fee is computed.

b.

If said Index for the last calendar month ending 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.

Said "base annual fee" shall be paid annually during the life of the franchise, including the year of granting the franchise.

E.

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, 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, during the life of the franchise.

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 § 2 (part)—Part 2 Art. 2 § 2001, 1978.)