Agenda

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C.173

To:	Board of Supervisors
From:	Julia R. Bueren, Public Works Director/Chief Engineer
Date:	June 9, 2015

Contra

Costa

County

Subject:

Granting of a Pipeline Franchise to CPN Pipeline Company

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/09/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor

ABSENT:

Federal D. Glover, District V Supervisor

Contact:

Carrie Ricci, (925) 313-2235

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: June 9, 2015
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT 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 for a pipeline located in the unincorporated area of the County near Bay Point.

FISCAL IMPACT:

The pipeline franchise will generate approximately $900.00 per year, commencing with calendar year 2014. 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 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. The annual franchise fee rate of $1.77 per cubic foot will be increased annually by the change in the Consumer Price Index, all Urban Consumers for the San Francisco-Oakland-San Jose 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).

CPN Pipeline Company has filed a written application with the County, dated December 4, 2013 wherein it has requested the granting of a pipeline franchise for the transportation of natural gas pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305. CPN Pipeline Company has also provided a $5,000 deposit to cover all administrative costs associated with the granting of this pipeline franchise as required by Ordinance No. 2013-19 and Resolution No. 2013/305.

Approval of Resolution No. 2015/167 will grant a pipeline franchise to CPN Pipeline Company for a 10-inch diameter, 728 foot long natural gas pipeline for an initial term of 10 years. This pipeline was previously covered under an existing County pipeline franchise that has since expired.

CONSEQUENCE OF NEGATIVE ACTION:

CPN Pipeline Company will not obtain the required authorization to operate and maintain their pipeline within the County right-of-way.