To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Granting of a Pipeline Franchise Renewal to Golden State Water Company
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
Adopt a resolution granting a ten-year pipeline franchise renewal to Golden State Water Company pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305 for pipelines located in the unincorporated area of Bay Point.
FISCAL IMPACT:
The pipeline franchise will generate approximately $87,000 per year commencing with calendar year 2026. In each subsequent calendar year the franchisee will pay the County two percent (2%) of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise; provided, however, that such payment shall in no event be less than one percent (1%) of the grantee’s gross annual receipts derived from the sale within the limits of the County of the utility service for which the franchise is awarded.
BACKGROUND:
On August 13, 2013, this Board adopted Ordinance No. 2013-19 (establishing regulations for granting pipeline franchises in County rights-of-way), and Resolution No. 2013/305 (establishing pipeline franchise fee amounts).
On February 10, 2015, this Board approved Resolution No. 2015/49 granting a pipeline franchise to Golden State Water pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
Golden State Water Company has filed a written application with the County, dated February 11, 2026, wherein it has requested the granting of a 10-year pipeline franchise renewal for the transportation of water pursuant to the terms and conditions of County Ordinance No. 2013-19.
Approval of resolution will grant a pipeline franchise renewal to Golden State Water Company for the pipelines located within the County’s rights of way for a term of ten years.
CONSEQUENCE OF NEGATIVE ACTION:
Golden State Water Company will not obtain the required authorization to continue to operate and maintain their pipelines within the County right-of-way.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF a resolution of the Board of Supervisors of the County of Contra Costa authorizing the granting of a ten-year pipeline franchise renewal to Golden State Water Company.
WHEREAS, on August 13, 2013, this Board adopted Ordinance No. 2013-19 (establishing regulations for granting pipeline franchises in County rights-of-way), which became effective September 12, 2013, and Resolution No. 2013/305 (establishing pipeline franchise fee amounts).
WHEREAS, on February 10, 2015, this Board approved Resolution No. 2015/49 granting a pipeline franchise to Golden State Water pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
WHEREAS, on February 11, 2026, Golden State Water Company filed a written application with the County, wherein it has requested the granting of a ten-year pipeline franchise renewal pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
WHEREAS, Golden State Water Company, a California corporation regulated by the California Public Utilities Commission, has pipelines located within the County’s right of way in the Bay Point area of the unincorporated County.
WHEREAS, the County has reviewed the application as well as relevant documents, staff reports and recommendations, and it is the intent of the Board to grant a ten-year pipeline franchise renewal to Golden State Water Company pursuant to Ordinance 2013-19 and Resolution 2013/305.
NOW, THEREFORE, BE IT RESOLVED as follows:
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1. The Board of Supervisors of Contra Costa County finds and declares that the foregoing recitals are true and correct.
2. Pursuant to Ordinance No. 2013-19, a franchise to operate pipelines within certain County rights of way with respect to Golden State Water Company’s Bay Point system located in the unincorporated area of the County is hereby granted to Golden State Water Company for a term of ten years.
3. The annual franchise payment to be paid pursuant to County Resolution 2013/305 shall be two percent (2%) of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise; provided, however, that such payment shall in no event be less than one percent (1%) of the grantee’s gross annual receipts derived from the sale within the limits of the County of the utility service for which the franchise is awarded.
4. The Director of Public Works, or his designee, is authorized to administer the pipeline franchise granted pursuant to this Resolution.
5. The franchise granted pursuant to this Resolution will take effect upon the following:
Within 30 days of the date of this Resolution, Golden State Water Company must file with the Public Works Department the following: (1) a written acceptance of the terms and conditions of the franchise granted pursuant to this Resolution, Ordinance No. 2013-19, and Resolution No. 2013/305; (2) a performance bond in the form approved by the Board; and (3) insurance coverage as required by Ordinance 2013-19.