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Agenda Item
ASR
Control 20-000628 |
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MEETING DATE: |
10/06/20 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
4 |
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SUBMITTING
Agency/Department: |
OC Public Works
(Approved) |
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Department contact
person(s): |
Tim Corbett (714) 667-4931 |
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Ron Vienna (714) 667-4945 |
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Subject: First Public Hearing on
Proposed Ordinance for Suburban Water Systems
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Ordinance to Form |
Public Hearing |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 9/15/2020
#13 |
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RECOMMENDED ACTION(S):
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1. |
Read title of ordinance, "An Ordinance of the Board of Supervisors of the County of Orange Granting to Suburban Water Systems, a California Corporation, a Franchise for the Distribution of Water Within Certain Public Streets and Highways Within Unincorporated Area." |
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2. |
Order further reading of the Ordinance be waived. |
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3. |
Conduct Public Hearing pursuant to California Public Utilities Code Section 6234. |
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4. |
Direct Ordinance to be placed on the agenda of the next regularly scheduled Board of Supervisors meeting on October 20, 2020, for adoption. |
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5. |
Consider the matter and adopt the Ordinance at the next regularly scheduled Board of Supervisors meeting on October 20, 2020. |
SUMMARY:
Adoption of an Ordinance to grant a utility franchise to Suburban Water Systems adheres to the requirements of the California Public Utilities Code and sets forth the statutory annual fee to be paid by the holder of the franchise.
BACKGROUND INFORMATION:
The Franchise Act of 1937 authorizes the Board of Supervisors (Board) to grant a franchise to gas, oil, electric and water companies to lay and use pipes, connections and appurtenances for the transmission and distribution of the utility service under, along, across and upon public roads and alleys.
On March 15, 1955, the County of Orange (County), per Ordinance No. 739, granted La Mirada Water Company (the pipeline's owner and operator at that time) a 50-year, non-exclusive water pipeline franchise to distribute water within an unincorporated Orange County neighborhood. On August 8, 2019, Suburban Water Systems (Suburban) (current pipeline owner and operator) filed an application to renew the franchise and negotiated the proposed franchise ordinance with OC Public Works.
The Public Utilities Code Sections 6201-6302 set forth the statutory annual fees to be paid by the holder of the franchise transporting water or products thereof. OC Public Works completed an audit of associated fees for this franchise and recommends that Suburban pay the County a one-time administration fee of $4,000 to process the franchise plus an annual estimated franchise fee of $1,300. The most recent annual fees paid by Suburban were $1,272 for FY 2017-18 and $1,341 for FY 2018-19. The annual franchise fee is based upon the length and diameter of the pipe located within the franchised area and will be adjusted per the Consumer Price Index (CPI) as published by the United States Department of Labor (USDL) for future calendar years. Upon execution of the franchise renewal, future relocation efforts by Suburban will be governed by the franchise.
Prior to granting a franchise, the Board must pass a Resolution declaring its intention to grant the franchise applied for and direct the Clerk of the Board to publish a Notice of Public Hearing for adoption of the franchise. This notice must be published in a newspaper of general circulation, printed and published at least once within 15 days after passage of this Resolution.
On September 15, 2020, the Board adopted the Resolution of Intention to grant the franchise renewal and directed the Clerk of the Board to publish a Notice of Public Hearing for adoption of the franchise. OC Public Works has now returned to the Board for the public hearing on the proposed franchise and, if appropriate after the public hearing, requests the Clerk of the Board to place this agenda item on the next regularly scheduled Board meeting on October 20, 2020, for the adoption of the franchise.
Compliance with CEQA: The proposed project was previously determined to be Categorically Exempt from CEQA pursuant to Section 15301 (Class 1) of the CEQA Guidelines, on September 15, 2020, when it was originally approved. CEQA Guidelines Section 15301 provides for the operation of existing facilities, involving negligible or no expansion of an existing use.
FINANCIAL IMPACT:
There will be a revenue deposit of a one-time administrative fee of $4,000 to General Fund Budget Control 100-001. The annual franchise fee is estimated to be approximately $1,300 and will be adjusted annually based on the CPI published by the USDL for future years. The annual franchise fee will continue to be recorded to General Fund Budget Control 100-001.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Proposed Ordinance
Attachment B - Location Map
Attachment C - Resolution
Attachment D - CA Public Utilities Code Sections 6201- 6302
Attachment E - Prior Ordinance No. 739
Attachment F - Public Notice