Chapter 13.10
COMPENSATION
Sections:
13.10.020 Public utility or mutual water company.
13.10.040 Initial construction charges.
13.10.050 Proration of payments.
13.10.010 Rates—General.
As consideration for the franchise granted, the franchisee shall pay to the city in lawful money of the United States the following:
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 city a granting fee with the application in an amount as established by resolution of the city council.
(Ord. 2256 § 1, 11-25-08: Ord. 1349 § 1 (part), 9-12-77)
13.10.020 Public utility or mutual water company.
Except as provided in Section 13.10.030, 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 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.
(1) If the franchise grants a right not therefore in existence and is for a 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 Chapters 13.02 through 13.18.
(2) Provided, however, that if the franchise is a renewal, continuation, or extension of a right already in existence, the payment of the percentage of gross receipts shall accrue from the effective date of the ordinance granting the franchise and shall be due within sixty days after the end of each calendar year.
(3) As used above, the phrase “two percent 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.
(4) The city 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.
(Ord. 1349 § 1 (part), 9-12-77)
13.10.030 Others.
(a) The franchisee of any franchise awarded to any others, including a public utility or mutual water company granted 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 city in lawful money of the United States, within sixty 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 title, a “base annual fee” computed as follows:
(1) Pipe of eight inches or less in nominal internal diameter, the annual fee shall be twelve cents per linear foot.
(2) Pipe greater than eight inches in nominal internal diameter, the annual fee shall be twelve cents per linear foot for the first eight inches of nominal internal diameter, plus two 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 five years from the effective date of the ordinance granting the franchise, at the time of payment in accordance with the following formula:
(1) If the final “Wholesale (Primary Market) Price Index for refined petroleum” prepared by the United States Bureau of Labor Statistics, Department of Labor, for the average (compiled of annual prices each October) month of October preceding the date on which payment to the city due pursuant to this section shall stand at the price prevailing during October 1977 (as a base of 100.0), then payment to the city shall be made at the rates hereinabove specified.
(2) If the Index stands at other than 100.0, then the rate of payment to the city shall vary from the hereinabove rates in direct proportion as the Index has increased or decreased from the 1977 base of 100.0; provided, however, that in no event shall the amount of the annual payment be less than the “base annual fee” as set forth herein.
(3) If the Bureau revises the Index, the parties hereto shall accept the method of revision or conversion recommended by the Bureau.
(4) If the Bureau discontinues the preparation of a Wholesale Price Index using prices prevailing in the year 1977, as a base of 100.0, and if no transposition table prepared by the Bureau is available, applicable to the year of 1977, 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.
(Ord. 1349 § 1 (part), 9-12-77)
13.10.040 Initial construction charges.
In addition to the foregoing annual payments, the franchisee shall:
(1) Pay the city an initial construction charge calculated at a rate of one hundred dollars per mile or fraction thereof for all new mains laid during the franchise payment period.
(2) Pay the city, during the life of the franchise, an annual fee of twenty-five dollars per pole-mile or portion thereof, and twenty-five dollars per mile or portion thereof of underground conduit for telephone or telegraph lines maintained under the franchise.
(Ord. 1349 § 1 (part), 9-12-77)
13.10.050 Proration of payments.
In the event of abandonment of facilities with the approval of the city as elsewhere in the ordinance provided, or in the event of removal of such facilities by the franchisee, the 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.
(Ord. 1349 § 1 (part), 9-12-77)
13.10.060 Prompt payment.
In the event the franchisee fails to make the payments for the franchise on or before the dates due as hereinabove provided, the franchisee shall pay as additional consideration the following amount: a sum of money equal to ten percent of the amount due.
(Ord. 1349 § 1 (part), 9-12-77)
13.10.070 Records.
The franchisee shall keep and preserve, within the county of Los Angeles 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 city or on its behalf, 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 treat of the operations, affairs, transactions, property or financial condition of the franchisee with respect thereto.
(Ord. 1349 § 1 (part), 9-12-77)