To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Chevron U.S.A. Inc. Revised Pipeline Length and Annual Fee
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
ACKNOWLEDGE changes to the annual fee amount and pipeline length in Resolution No. 2026-92 which granted a ten-year pipeline franchise renewal to Chevron U.S.A. Inc. pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305 for pipelines located in unincorporated areas of the County near Bay Point, Brentwood, Byron, Martinez, and North Richmond, as recommended by the Public Works Director.
FISCAL IMPACT:
The change to Resolution No. 2026-92 described in the Background section below will modify the amount generated by the pipeline franchise per year from approximately $3,000 to approximately $3,400 commencing with calendar year 2026. 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 January 5, 2016, this Board approved Resolution No. 2016/13 granting a pipeline franchise to Chevron U.S.A. Inc. pursuant ...
Click here for full text