To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Granting a Pipeline Franchise to CPN Pipeline Company
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Resolution granting a ten-year pipeline franchise renewal to CPN Pipeline Company pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305 for a pipeline located in the unincorporated area of the County near Bay Point as recommended by the Public Works Director. (100% Pipeline Franchise Fees)
FISCAL IMPACT:
The pipeline franchise will generate approximately $1,240 per year commencing with calendar year 2024. The annual franchise payment will be calculated at the rate of $1.77 per cubic foot of pipeline within the County right-of-way. The number of cubic feet of pipeline subject to the franchise fee rate will be calculated by taking the area of the inside diameter of the pipeline plus 1” and multiplying it by the length of the pipeline within the County right-of-way. A minimum inside diameter of six (6) inches will be used for these calculations. The annual franchise fee rate of $1.77 per cubic foot is increased annually by the change in the Consumer Price Index, all Urban Consumers for the San Francisco-Oakland-Hayward Area (1982-84 = 100), with December 2012 (239.53) as the base CPI month
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 June 9, 2015, this Board approved Resolution No. 2015/167 granting a pipeline franchise to CPN Pipeline Company pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
CPN Pipeline Company has filed a written application with the County, dated November 12, 2024, wherein it has requested the granting of a pipeline franchise ten-year renewal pursuant to the terms and conditions of County Ordinance No. 2013-19. CPN Pipeline Company provided the deposit to cover all administrative costs associated with the granting of this pipeline franchise renewal, as required by Ordinance No. 2013-19 and Resolution No. 2013/305.
Approval of Resolution will grant a pipeline franchise renewal to CPN Pipeline Company for one 10-inch diameter, 728-foot-long natural gas pipeline for a term of ten years. The pipeline was included in the approval of Resolution No. 2015/167. CPN Pipeline Company determined that there have been no changes to the pipeline.
CONSEQUENCE OF NEGATIVE ACTION:
CPN Pipeline Company will not obtain the required authorization to continue to operate and maintain their pipeline within the County right-of-way under the Pipeline Franchise Ordinance. The Pipeline Franchise Ordinance includes provisions to protect the County from risks associated with pipelines.
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 CPN Pipeline Company. The Board of Supervisors of the County of Contra Costa finds and declares:
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).
WHREAS, on June 9, 2015, this Board approved Resolution No. 2015/167 granting a pipeline franchise to CPN Pipeline Company pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
WHEREAS, CPN Pipeline Company has 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, CPN Pipeline Company has identified the following pipeline, which it owns and will be covered under the proposed pipeline franchise renewal as:
A 10-inch diameter natural gas pipeline bisecting the County from east to west and crossing various County rights of way for a lineal distance of approximately 728 feet.
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 pipeline franchise to CPN Pipeline Company pursuant to Ordinance 2013-19 and Resolution 2013/305.
NOW, THEREFORE, BE IT RESOLVED
end
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 renewal to operate pipelines on certain County rights of way as described below is hereby granted to CPN Pipeline Company, a Delaware Corporation for a term of ten years.
A 10-inch diameter natural gas pipeline bisecting the County from east to west and crossing various County rights of way for a lineal distance of approximately 728 feet (Los Medanos Pipeline)
3. The general location of the pipelines is depicted on the map attached hereto as Exhibit 1.
4. The annual franchise payment to be paid pursuant to County Resolution 2013/305 shall be calculated at the rate of $1.77 per cubic foot of pipeline within the County right-of-way. The number of cubic feet of pipeline subject to the franchise fee rate will be calculated by taking the area of the inside diameter of the pipeline plus 1” and multiplying it by the length of the pipeline within the County right-of-way. A minimum inside diameter of six (6) inches will be used for these calculations. The annual franchise fee rate of $1.77 per cubic foot is increased annually by the change in the Consumer Price Index, all Urban Consumers for the San Francisco-Oakland-Hayward Area (1982-84 = 100), with December 2012 (239.53) as the base CPI month.
5. The Director of Public Works, or his designee, is authorized to administer the pipeline franchise granted pursuant to this resolution.
6. The Resolution shall take effect upon the following:
Within 30 days of the date of this Resolution, CPN Pipeline 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.