As a consideration for the franchise granted, the franchisee shall pay to the city in lawful money of the United States the fees set out in Sections
4.12.020 through
4.12.050 of this chapter.
(Prior code § 10200(part))
A. 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 city a granting fee of three thousand
dollars within thirty days after the city council adopts the ordinance
granting the franchise.
B. 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, and 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 city a granting fee of one thousand four hundred
dollars within thirty days after the city council adopts the ordinance
granting the franchise.
(Prior code § 10200(A); Ord. 948 § 1, 2000)
In addition to the foregoing annual payments, the franchisee
shall:
A. Pay
the city, within sixty days after the end of each calendar year, an
initial construction charge calculated at a rate of one hundred dollars
per mile or fraction thereof for all new mains laid during the preceding
year, during the life of the franchise;
B. Pay
the city, during the life of the franchise, an annual fee of twenty-five
dollars per polemile or portion thereof, and twenty-five dollars per
mile or portion thereof of underground conduit for telephone or telegraph
lines maintained under the franchise. Such fee shall be due within
sixty days after the end of each calendar year.
(Prior code § 10200(D))
Except as provided in Section
4.12.050 of this chapter, the franchisee, as further consideration for the franchise hereby granted, shall pay to the city 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.
(Prior code § 10200(B))
A. 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 city in lawful money of the United States
a "base annual fee" computed as follows:
1. Pipe
of eight inches or less in nominal internal diameter: The annual fee
shall be thirty-three cents per linear foot;
2. Pipe
greater than eight inches in nominal internal diameter: The annual
fee shall be thirty-three cents per linear foot for the first eight
inches of nominal internal diameter, plus six cents per nominal internal
diameter inch for each inch or fraction thereof over eight inches.
B. 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:
1. The
Wholesale Producer Price Index (1967—100) All Commodities, for
the Los Angeles Area, 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.
2. If
said index for the last calendar month ending prior to the month in
which payment to the city is due shall stand at other than such "base
index," then the rate of payment to the city shall vary from such
"base annual fee" in direct proportion as such 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 in this section.
3. If
the Bureau of Labor Statistics shall revise the said index, the parties
thereto shall accept the method of revision or conversion recommended
by the Bureau.
4. If
the Bureau of Labor Statistics 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 the Bureau is available,
applicable to the 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 the city and the city shall be the sole judge of comparability
of successive indices.
C. The "base annual fee" described in subsection
B of this section shall be paid annually during the life of the franchise, including the year of granting the franchise.
(Prior code § 10200(C); Ord. 948 § 2, 2000)
In the event of abandonment of facilities with the approval
of the city, or in the event of removal of facilities with approval
of the city, payments otherwise due the city 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.
(Prior code § 10201)
In the event the franchisee fails to make the payments for the franchise, or the payments due under Section
4.12.030 of this chapter, on or before the dates due, as hereinabove provided, the franchisee shall pay as an additional consideration the following amount: A sum of money equal to ten percent of the amount due.
(Prior code § 10202)