Franchise for Pipe Line Appurtenant Facilities Bond - City of Brea, CA in California

Brief Summary

In Brea the pipeline franchise bond has a hard deadline. It must be on file with the City Clerk on or before the day the franchise ordinance takes effect, or the Council can set the award aside and repeal the ordinance. The bond then stays in place for the life of the franchise.

Brea Municipal Code Chapter 8.42 requires every pipeline franchisee to file a $100,000 corporate surety bond with the City Clerk on or before the effective date of the franchise ordinance. The surety must be licensed in California and approved by the City Engineer, and the bond must remain in force for the full franchise term.

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How to Apply for a Franchise for Pipe Line Appurtenant Facilities Bond:

• Confirm the effective date of your franchise ordinance with the City Clerk.
• Ask the City Engineer whether a specific bond form or wording is required.
• Use the franchisee's legal name exactly as it appears in the franchise ordinance.
• Obtain a $100,000 corporate surety bond from a surety authorized in California.
• Get the City Engineer's approval of the surety.
• File the bond with the Brea City Clerk on or before the ordinance's effective date.

Detailed Information About the California Franchise for Pipe Line Appurtenant Facilities Bond:

Who posts the bond

Brea grants franchises for pipes and pipelines carrying oil, gas, water, steam and similar substances, along with their appurtenant facilities such as valves, manholes and cathodic protection devices, placed in city streets. These franchises are governed by Chapter 8.42 of the Brea Municipal Code, Pipeline Franchises, together with the terms of the ordinance that grants each franchise. Section 8.42.260 requires the franchisee to post a faithful performance bond.

Amount and surety

The bond is a corporate surety bond in the penal sum of $100,000. The surety must be authorized to do business in California and approved by the City Engineer.

The deadline that matters

The bond must be filed with the City Clerk on or before the effective date of the ordinance granting the franchise. If it is not, the award can be set aside and the ordinance repealed at any time before the bond is filed, and money paid for the franchise award is forfeited. Order the bond as soon as the Council introduces the ordinance.

What the bond guarantees

The bond is conditioned on the franchisee performing every term and condition of the franchise. On a breach, the code treats the full penal sum as liquidated damages recoverable from the principal and the sureties. It must be kept in force for as long as the franchise lasts.

Check the granting ordinance

Each franchise ordinance can add conditions on top of Chapter 8.42. Confirm the bond wording and any additional requirements with the City Clerk and the City Engineer before the bond is issued.

Cost

The premium depends on the franchisee's financial strength and pipeline operating history. Pipeline operators with solid financial statements generally qualify on standard terms.

Eligibility and Requirements for a California Franchise for Pipe Line Appurtenant Facilities Bond:

• City of Brea named as obligee.
• Penal sum of $100,000.
• Corporate surety authorized to do business in California and approved by the City Engineer.
• Bond kept in force for the life of the franchise.
• Compliance with Chapter 8.42 and the franchise ordinance's own terms.

California Franchise for Pipe Line Appurtenant Facilities Bond FAQs:

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