The franchisee of any franchise awarded to a public utility or non-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 30 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 a franchise fee negotiated as part of the franchise agreement (unless preempted by state law) arising from the use, operation or possession of the franchise.
(3889-9/10)
Whenever the length of any wire, pipe or conduit is a factor in calculating any payment due under any franchise granted by the City, all service connections shall be excluded in determining such lengths.
(3889-9/10)
The franchisee of any franchise awarded for a pipeline transmitting oil or products thereof which has been determined by the Public Utilities Commission to be a public utility, as consideration for such franchise, shall, within 30 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 as required by state law. In the event these referenced fees increase pursuant to state law, the fees referenced herein shall increase by the same:
Pipelines with an Internal Diameter of:
Base Rate Per Lineal Foot
0-4 inches
.088
6 inches
.132
8 inches
.176
10 inches
.220
12 inches
.264
14 inches
.308
16 inches
.352
18 inches
.396
20 inches
.440
22 inches
.484
24 inches
.528
26 inches
.572
28 inches
.616
30 inches
.660
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 amount of the fee or charge provided for in this section shall be multiplied by the Consumer Price Index, All Urban Consumers (CPI-U) for the Los Angeles-Riverside-Orange County 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 (CPI-U for the Los Angeles-Riverside-Orange County Area for June 30, 1989 (1982-84=100.0)).
(3889-9/10)
The franchisee of any franchises awarded to other than a public utility transmitting oil or oil products thereof, 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.
(3889-9/10)
In the event of an initial grant of franchise or franchises which extend, renew, or continue previously granted franchises, a base granting fee shall be required as established, and amended from time to time, by resolution of the City Council.
(2319-10/78, 2676-2/84)
A base annual fee shall be paid by franchisee within 30 days after the end of each calendar year including the year of granting the franchises, according to the franchise payment period as defined in this chapter, in the following amounts:
Pipelines with an Internal Diameter of:
Amount Per Lineal Foot
0-4 inches
.590
6 inches
.895
8 inches
1.197
10 inches
1.485
12 inches
1.787
14 inches
2.092
16 inches
2.377
18 inches
2.682
20 inches
2.984
22 inches
3.272
24 inches
3.574
26 inches
3.879
28 inches
4.164
30 inches
4.469
The base annual rate applicable to pipelines with an internal diameter falling between 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 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 30 days and a penalty at the rate of 10% per month or fraction thereof beyond the payment date shall be charged, but in no event shall said penalty exceed 50%.
The City reserves the right to adjust the base fees established hereunder at any time after the effective date of the ordinance codified in this chapter.
(2319-10/78, 2676-2/84, 3889-9/10)
Payment is due 30 days after the City's invoice date and a 10% per month late penalty and 18% annual interest cost will be charged for any delinquent payment. The City will also withhold any permits/not renew licenses if any payment is delinquent. Payments should be mailed to the City Treasurer, City of Huntington Beach, P.O. Box 711, Huntington Beach, CA 92648-0711.
(3889-9/10)
The holder of the franchise shall pay at the time of installation, relocation or replacement of any segment of pipe or pipeline, or any other facility covered by the franchise agreement, a base construction charge established, and amended from time to time, by resolution of the City Council.
(2319-10/78, 2676-2/84)
The amount of each base annual fee as specified in the above section shall be revised every year, in accordance with the following formula:
A. 
The Consumer Price Index, All Urban Consumers (CPI-U) for the Los Angeles-Riverside-Orange County area (1982-84=100) as published by the United States Bureau of Labor Statistics ("Bureau"), shall be defined as the "index," and such index as it stands on August 1, 2010 shall be defined as the "base index" and the index for the month of September immediately preceding the fee payment date shall be defined as the "current index."
B. 
If the current index differs from the base index, then the base annual fee shall increase or decrease by the percentage increase or decrease between the current index and the base index, provided that, if the current index drops below the base index, no adjustment shall be made. The base annual fee shall be multiplied by an adjustment factor determined by dividing the current index by the base index.
For example, if the base index is 185.0 and the current index is 190.5, the annual franchise fee shall be (i.e. 190.5/185.0 = 1.0297), times the base annual fee; provided, however, under no circumstances shall the multiplying factor be less than one, nor shall the annual franchise fee calculated using said factor, be less than the base annual fee. If the Bureau shall revise the index, the parties hereto shall accept the method of revision for conversion recommended by the Bureau; and
C. 
If the Bureau discontinues the preparation or publication of the CPI-U, All Urban Consumers for the Los Angeles-Riverside-Orange County area (1982-84=100), and if no transposition table prepared by the Bureau is available, then the amount of each annual franchise fee shall be computed by reference to such other price index as may be chosen by the City, and the City shall be the sole judge of comparability of successive indices and its determination on this point shall be final and conclusive. In no event shall the annual franchise fee adjustment by reference to such other price index be less than the base annual fee as set forth herein.
D. 
Publication and Administrative Issuance Costs. The franchisee shall pay to the City within 30 days after receiving a statement therefor, all administrative and other costs incurred by the City 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 (Public Resources Code Section 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.
E. 
The base annual fee may also be amended from time to time by resolution of the City Council.
(3889-9/10)
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 the aforementioned sections 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.
(2319-10/78, 3889-9/10)
A. 
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.
B. 
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 Orange.
(2319-10/78, 3889-9/10)