The city council finds and declares that the purpose of this chapter is as follows:
A. 
The general plan of the city requires that the city be provided, in a time frame related to its development, with an adequate level of electric system subtransmission infrastructure so as to maintain an efficient, reliable and safe distribution system.
B. 
New development, and the expansion of existing development, within the city imposes a burden on the existing electric system subtransmission infrastructure, including without limitation the need for upgraded or additional 60kV substations and subtransmission lines, by adding additional electric load. Such burden may vary by the type of development.
C. 
Analysis of the electric load currently created by the various types of development within the city and of the land use expected at build out of the city pursuant to the general plan makes it possible to estimate the amount of electric load generated by different types of development and to determine the electric system subtransmission infrastructure or facilities necessary to support those loads. It is therefore possible to construct a fee, based on anticipated electric load, which equitably spreads the burden of electric system subtransmission infrastructure or facilities to those who will create the need for them and utilize them. It is the intent of this chapter to create such a fee, spreading costs of electric system subtransmission infrastructure to those who create the need for such subtransmission infrastructure, without burdening rate-payers or generating any surplus to either the general or electric funds. It is the further purpose of this chapter to implement the general plan by assuring that adequate public facilities are financed and provided to serve the city.
D. 
The fee established by this chapter has been calculated in the manner set forth in the Utility Financial Solutions (UFS) Consultant Study (“Study”) so as to pay for those facilities listed in the capital improvement program.
E. 
The fee established by this chapter is in addition to any other fees or charges required by law as, a condition of development or electric service, including without limitation by reason of enumeration, required payments in aid of construction for the cost of distribution facilities for or within a specific development, service connection fees or direct installation fees, or periodic payments for service pursuant to rates established in Chapter 14.24.
F. 
The fee established by this chapter is to be collected for public improvements and facilities, and for which a proposed construction schedule has been adopted.
G. 
That the failure to impose the conditions and regulations of this chapter relating to payment of the fee on building permits would jeopardize residents of the community in that it would permit construction to proceed without adequate infrastructure or means of financing said infrastructure.
H. 
The requirement of this chapter to pay the fee is necessary in order to assure compliance with the applicable Zoning Ordinance and general plan requirements for the infrastructure funded by this chapter.
I. 
That for a period of greater than 10 days prior to adoption of this chapter, data has been available to the public and to developers and their representatives indicating the cost or estimated cost of the entire infrastructure to be funded.
J. 
That the city council has considered the effect of the fee imposed by this chapter with respect to the housing needs of the city as a whole and of the region, particularly as required by the housing element of the general plan, and the city council finds that this chapter does not unduly adversely affect the city’s ability to provide for such needs.
K. 
That the establishment of the fee is for the purpose of obtaining funds for capital projects, necessary to maintain service required by the general plan within existing service areas and existing portions of the city which are developed or for which land use has already been granted.
(Ord. 2393 § 1, 1991; Ord. 4605 § 1, 2008; Ord. 5319 § 1, 2014)
The following words are defined for purposes of this chapter as follows:
“Building permit”
means the permit issued or required by the city for the construction of any structure pursuant to and as defined by the building code.
“Capital improvement program”
means that list of proposed electric system facilities, improvements, or infrastructure totaling $28,650,000.00 referenced in the 2019 UFS Study.
“Department”
means the electric utility department.
“Director”
means the director of the department.
“Facilities”
mean those electric system facilities or infrastructure shown and included on the capital improvement program.
“Fee” or “electric backbone mitigation fee” or “backbone fee”
means the fee established by this Chapter 4.54. The fee shall be collected prior to the approval of any building permit. The fee shall be used solely to finance the facilities. The fee as codified in this chapter has previously been imposed for the same purposes, pursuant to motion of the city council.
“Improvement plan”
means a site plan of property proposed for development showing all required improvements that must be approved by the city prior to the issuance of a building permit for the property.
“Study” or “system study”
means the 2019 UFS Consultant Study. The Study is on file in the office of the city clerk.
(Ord. 2393 § 1, 1991; Ord. 2677 § 1, 1993; Ord. 4605 § 1, 2008; Ord. 5319 § 1, 2014; Ord. 6097 § 1, 2019)
All fees collected pursuant to this chapter shall be expended solely to finance the facilities.
(Ord. 2393 § 1, 1991; Ord. 4605 § 1, 2008)
Except as otherwise provided by this chapter, the fee imposed pursuant to this chapter shall be paid at the time of permit and prior to a request for any electrical inspection. Calculation of the fee shall be determined on a per unit basis in accordance with the billing units defined in the UFS Consultant Study and Section 4.54.050 of this chapter, the number of single-family units, multifamily units, and general service customers (all other commercial/office/industrial types of development) service panel rating of the development. Descriptions of land use categories and type of development in this chapter, except as otherwise noted, are utilized in the same manner as in the city general plan.
(Ord. 2393 § 1, 1991; Ord. 4605 § 1, 2008; Ord. 5319 § 1, 2014)
The electric backbone mitigation fee shall be:
Type of Development
Amount of Fee
Apartments, condominiums, townhouses and mobile homes
$360.95 per dwelling unit
Other residential units including single-family homes
$496.31 per dwelling unit
General service (all other commercial/office/industrial)
$90.24 per kVA
(Ord. 2393 § 1, 1991; Ord. 2677 § 1, 1993; Ord. 2711 § 1, 1993; Ord. 4605 § 1, 2008; Ord. 5319 § 1, 2014; Ord. 6097 § 2, 2019)
A. 
In special circumstances, the director may recommend a different fee to the council for a particular development.
B. 
Service facilities increased by more than 2,000 kVA and instances where service entrance facilities were installed prior to August 11, 1982 (when the backbone fee was originally established) shall constitute special circumstances within the meaning of subsection A.
C. 
Notwithstanding any provision in this chapter to the contrary, the director may recommend and the council may approve, in its sole discretion, payment of the fee or any other sums due under this chapter over time and under such circumstances, criteria, terms and conditions as the council may establish.
(Ord. 2393 § 1, 1991)
No fee shall be charged for already existing development or for projects which rebuild or remodel without increasing either the electrical load used or the capacity of either the electric service panel or the main switch, except as provided in this section.
A. 
Where the development or project changes to a different type of development, it shall be charged the appropriate backbone fee as provided by Sections 4.54.050 through 4.54.110, less any amount previously paid pursuant to this chapter.
B. 
Where the development or project expands or remodels the same development, it shall be charged the appropriate backbone fee as provided by Sections 4.54.050 through 4.54.110; provided, however, that the fee shall be calculated only as to that portion of the development or project which is expanded or remodeled, or the amount by which the electric load is increased, or the amount by which the size of the electric service panel is increased, as determined to be appropriate by the director. Where the fee is calculated based upon the number of dwelling units, no fee shall be charged unless an additional dwelling unit is added.
(Ord. 2393 § 1, 1991; Ord. 4605 § 1, 2008)
A. 
A developer of any project subject to the fee established by this chapter may apply to the director for a reduction or adjustment to the fee based upon the absence of any reasonable relationship or nexus between the impacts of the project and either the amount of the fee or the facilities to be financed by the fee. The application shall be made in writing and filed with the director not later than 20 calendar days after notification of the amount of the fee. The application shall state in detail the factual basis for the claim of reduction or adjustment and the amount of the proposed reduction or adjustment. The director shall consider the application and render his or her decision in writing not later than 45 calendar days after the filing of the fee adjustment request. Any person aggrieved by the decision of the director may, within 20 calendar days thereafter, appeal the decision in writing to the city council by filing an appeal with the city clerk. The city council shall consider such appeals within 45 calendar days after filing. The decision of the city council shall be final. No building permit shall be issued for the project until the final decision pursuant to this section has been made. No application for a project shall be considered final or complete for purposes of the Permit Streamlining Act (Government Code Section 65920 et seq.), or any other purpose, until a final decision pursuant to this section has been made.
B. 
Notwithstanding the provisions of subsection A, a project proponent or applicant may pay the fee “under protest” and receive a building permit; provided, however, that the application for reduction or adjustment shall thereafter be filed within 10 calendar days or any objection shall be deemed waived. If a reduction or adjustment is received after payment pursuant this subsection is made, a refund to the applicant shall be made of that amount by which the fee is reduced or adjusted.
C. 
The project proponent or applicant applying for a reduction or adjustment shall have the burden of proof, by a preponderance of the evidence, that a reasonable relationship or nexus is lacking between the fee, or the facilities to be financed by the fee, and the particular project.
D. 
In the event of any reduction or adjustment in the fee granted pursuant to this section, any later change in the electric load use, zoning, or land use designation for the property involved shall subject the then owner to payment of the then applicable fee for such electric load, new uses, zoning, or land use designation, whether or not a building permit is required.
(Ord. 2393 § 1, 1991)
The Construction Cost Index (CCI) inflationary fee adjustment shall become effective July 1, 2013. The fee established by this chapter shall be adjusted annually July 1st beginning on July 1, 2013 by a percentage equal to the adjustment rate for the prior year for construction costs as determined by the director in the preceding June. The director’s determination shall be based upon averaging the Construction Cost Index (CCI) for 20 cities and for San Francisco, as published in the Engineering News Record publication for the preceding 12 months ending in May. The resultant fee shall be rounded to the nearest dollar figure.
(Ord. 2393 § 1, 1991; Ord. 4739 § 9, 2009; Ord. 4854 § 7, 2010; Ord. 4947 § 7, 2011; Ord. 5070 § 4, 2012)
The backbone fees shall be used to finance the facilities. To the extent sufficient fees are available, all facilities financed by the fees shall be constructed or acquired in accordance with the priorities established in the capital improvement program.
(Ord. 2393 § 1, 1991; Ord. 4605 § 1, 2008)
If any provision of this chapter or the application thereof to any person or circumstances held invalid, such invalidity shall not affect the other provisions of this chapter which can be given effect without the invalid provisions or its application, and to this end the provisions of this chapter are severable.
(Ord. 2393 § 1, 1991)