Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 344 of 360 (D) Director. The City Manager or designee.
(E) Electrical Infrastructure (or "Improvements"). All physical facilities, equipment, and appurtenances required by the Serving Utility or the City to deliver safe, reliable, and adequate electric service to a Development Project, or to maintain the capacity and integrity of the electrical grid within the City. This term is used in this Chapter in its broadest sense; however, the City's requirements under this Chapter are expressly limited to Eligible Improvements, as defined in Section 164.03(G), and do not independently mandate the design, construction, or funding of distribution-level facilities (such as service laterals, conduit runs, or distribution transformers) that are governed by the Serving Utility's tariffs and standard service extension requirements.
(F) Electrical Infrastructure Adequacy Standards ("Standards"). The City-mandated requirements for the capacity of electrical substation facilities necessary to ensure a Project is served by a safe and reliable power source with adequate substation capacity. These Standards are a condition of Project approval and occupancy.
(G) Eligible Improvements. Those System Capacity Improvements, as defined in Section 164.03(M), which the Director determines are necessary to maintain substation capacity adequacy for a Project or the City as a whole. Eligible Improvements are limited to substations, substation upgrades, and directly associated sub-transmission connections. Such improvements are eligible for funding via the voluntary In-Lieu Fee. Distribution-level facilities, including service laterals, distribution transformers, conduit runs, and feeder extensions, are not Eligible Improvements and shall not be funded through the In-Lieu Fee program established by this Chapter.
(H) In-Lieu Fee. A voluntary monetary contribution paid by an applicant, at the applicant's sole election, to satisfy the Infrastructure Adequacy Standards for Eligible Improvements in lieu of the applicant directly funding or constructing said substation improvements. The fee shall be based on a Proportionate Cost Estimate verified by the Director. (I) Net New Load. The incremental peak electrical demand, measured in kilovolt-amperes (kVA), attributable to a Development Project. This is calculated as the total projected demand of the Project minus any credit for historically documented demand previously existing on the site, as determined by Serving Utility methods or a City-approved engineering study. (J) Oversizing. The requirement by the City or Serving Utility that an applicant fund or construct a System Capacity Improvement with total substation capacity in excess of what is strictly necessary to serve the Project's Net New Load alone, in order to accommodate the projected cumulative growth within the City. The Oversized Portion is defined as the total cost of the improvement minus the applicant's own proportionate fair-share cost based on the Project's Net New Load.
(K) Proportionate Cost Estimate. An analysis prepared or approved by the Director that determines a Project's equitable share of the cost of an Eligible Improvement based on the Project's Net New Load as a percentage of the total new substation capacity created, or other objective engineering factors.
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 345 of 360 (L) Serving Utility. The Imperial Irrigation District (IID) or other utility, as applicable to the Project's location.
(M) System Capacity Improvements. Electrical substations, substation capacity upgrades, and directly associated sub-transmission connections and appurtenances necessary to accommodate the cumulative Net New Load of Development Projects and maintain substation capacity adequacy throughout the City. This term does not include distribution-level facilities such as primary feeders, service laterals, distribution transformers, conduit runs, or duct banks, which are governed exclusively by the Serving Utility's tariffs and service extension standards. 164.04 APPLICABILITY AND TRIGGERS.
(A) General Applicability. This Chapter shall apply to all Development Projects within the City that meet any of the following criteria (the "Triggers"):
(1) Load Increase: Any Project that results in Net New Load, as defined in Section 164.03. (2) New Service: Any Project requiring the establishment of a new electrical service account or new physical connection point with the Serving Utility. (3) Subdivisions: Any Project involving a tentative parcel map or tentative tract map, where the creation of new parcels necessitates the future extension of electrical service and creates Net New Load on the substation system.
(B) Administrative Thresholds (De Minimis). The Director shall have the authority to establish administrative thresholds below which the Standards of this Chapter do not apply. Until such thresholds are established by resolution or administrative regulation, this Chapter shall not apply to:
(1) Minor Residential: Residential electrical service upgrades for existing single-family homes that do not exceed a total service capacity of 400 Amps. (2) Minor Commercial: Interior tenant improvements that do not increase the Project's peak demand by more than 10 kVA and do not require any off-site infrastructure work. (3) No-Impact Projects: Any project that the Director determines, based on substantial evidence, has a negligible impact on grid adequacy and reliability. (C) Exemptions. This Chapter shall not apply to:
(1) Emergency Work: Immediate repairs required to protect public health and safety or to restore power during an outage.
(2) Maintenance: Routine repair or replacement of existing facilities with functionally equivalent equipment that does not create Net New Load.
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 346 of 360 164.05 COMPLIANCE PATHWAYS.
An applicant for a Development Project shall satisfy the Electrical Infrastructure Adequacy Standards of this Chapter by selecting one of the following compliance pathways. The selected pathway shall be documented in the Project's conditions of approval or a formal improvement agreement:
(A) Installation Path (Standard Compliance). The applicant shall design, fund, and directly contribute to the construction of all required System Capacity Improvements (i.e., substation improvements) determined by the Serving Utility to be necessary to serve the Project's Net New Load. The applicant's obligation under this path is limited to the Project's proportionate share of the required substation improvement, as identified in the Serving Utility's Letter of Requirement and verified by the Director through a Proportionate Cost Estimate. This path is the default requirement for all Development Projects. All funded improvements must comply with the requirements of Section 164.07. For clarity, the obligation to design, fund, and construct distribution-level facilities (including service laterals, distribution transformers, conduit runs, and primary feeder extensions between the Project site and the APOC) is governed solely by the Serving Utility and is not a requirement of this Chapter. (B) In-Lieu Fee Path (Alternative Compliance). At the applicant's sole election and discretion, the applicant may satisfy the Standards for designated Eligible Improvements by paying a voluntary In-Lieu Fee. The City may utilize In-Lieu Fee revenues to fund Eligible Improvements, including substations and substation capacity upgrades, anywhere within the City, regardless of their geographic distance from the Project site. The City Council finds that this method is technically and economically superior to project-specific substation construction because: (i) the electrical grid is an interconnected network where the load increase caused by a specific Project site consumes a discrete "slice" of system-wide thermal and voltage capacity.
This consumption directly degrades the adequacy of the grid at the source level (i.e., the substation), necessitating substation upgrades to restore safety and reliability; (ii) coordinating a single, large-scale System Capacity Improvement is more efficient than requiring individual developers to independently fund piecemeal substation construction; and (iii) systemwide substation improvements allow the Serving Utility to balance loads across multiple circuits, providing higher reliability for all Projects throughout the City. (C) Hybrid Path (Coordinated Compliance). An applicant may elect to directly fund a portion of the required Eligible Improvements and pay a proportionate In-Lieu Fee for the remainder. The Director may approve a Hybrid Path where it is determined that such an arrangement is technically feasible and consistent with the orderly development of substation capacity throughout the City. Applicants using the Hybrid Path shall receive a credit against their total In- Lieu Fee obligation for the value of the substation improvements they directly fund, as verified under Section 164.10.
164.06 SYSTEMIC NEXUS; PROPORTIONALITY; ANTI-DUPLICATION.
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 347 of 360 (A) Systemic Nexus and Substation Capacity Adequacy. The City Council finds that the electrical grid is a singular, interconnected network. Every Development Project that creates Net New Load consumes a discrete portion of the substation's total thermal and capacity headroom. (1) Consumption of Substation Capacity: This consumption reduces the available substation capacity within the grid, which, if not replenished through System Capacity Improvements, results in localized or systemwide substation overloading, posing a threat to public safety and reliability for all customers served by the affected substation. (2) Mitigation of Impact: Therefore, a direct legal and engineering nexus exists between the Project's Net New Load and the requirement to fund System Capacity Improvements, regardless of the geographic proximity of the substation to the Project site, to ensure substation capacity remains adequate to support the Project's demand. (B) Rough Proportionality and Capacity Allocation. Any requirement imposed under this Chapter, whether involving direct substation funding or a voluntary In-Lieu Fee, shall be roughly proportional to the Project's specific impact on substation capacity. Proportionality for all Eligible Improvements shall be determined by the Project's Net New Load as a percentage of the total new substation capacity (kVA) created by the System Capacity Improvement. The Director may utilize a Proportionate Cost Estimate to verify that the fee or construction requirement does not exceed the Project's fair share of the substation capacity impact. (C) Anti-Duplication and Utility Credits. To prevent duplicative exactions, the City shall provide a credit against any voluntary In-Lieu Fee as follows:
(1) Direct Utility Payments: If an applicant demonstrates they have paid the Serving Utility (IID) for the same scope of System Capacity Improvements (i.e., substation improvements) identified as Eligible Improvements by the City, the City shall provide a dollar-for-dollar credit against the In-Lieu Fee.
(2) IEFA Surcharge: The City recognizes that electric consumers within Indio are subject to a city-wide surcharge established by the Indio Electric Financing Authority (IEFA) to fund specific substation and reliability Projects. The City shall not include any substation project as an "Eligible Improvement" for the In-Lieu Fee if that specific project is already fully funded by the IEFA Surcharge.
(3) Verification Requirement: The burden of proof lies with the applicant to provide an executed contract, paid invoice, or a Serving Utility "Letter of Requirement" detailing the specific charges and the substation infrastructure they fund. 164.07 INSTALLATION PATH REQUIREMENTS.
Any applicant electing or required to proceed under the Installation Path shall comply with the following standards. The requirements of this Section apply exclusively to System Capacity Improvements (i.e., substation improvements) as defined in Section 164.03(M). Nothing in this Section shall be construed to require an applicant to independently design, construct, or fund
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 348 of 360 distribution-level facilities (such as service laterals, conduit runs, primary feeders, or distribution transformers) that are governed exclusively by the Serving Utility's tariffs and service extension requirements.
(A) Engineering Plans and Technical Standards. System Capacity Improvements shall be designed, engineered, and constructed in strict accordance with:
(1) Utility Standards: The Serving Utility's current design standards, material specifications, and tariffs applicable to substation construction and upgrades. (2) Building Codes: The California Building Standards Code (Title 24, CCR) as adopted by the City, to the extent applicable to substation facilities. (3) City Standards: The City's standard specifications for public works construction, to the extent applicable.
(4) Conflicts: In the event of a conflict between the aforementioned standards, the Director, in consultation with the Serving Utility, shall determine which standard applies based on the goal of maximizing substation safety and capacity adequacy. (B) Mandatory Will-Serve Documentation. No improvement plans shall be approved, and no building permits shall be issued, until the applicant provides a current Will-Serve Letter and a Letter of Requirement (LOR) from the Serving Utility.
(1) These documents must specify the required System Capacity Improvements, the designated APOC, and the Project's proportionate impact on substation capacity. (2) The City may require the applicant to fund an independent third-party peer review of the Serving Utility's substation capacity study to verify the proportionality of the requirements.
(C) Utility Coordination and Funding Agreement. The applicant shall execute a direct funding or construction agreement with the Serving Utility, or provide written evidence satisfactory to the Director confirming the applicant's proportionate financial contribution toward the required System Capacity Improvement identified in the Letter of Requirement. A fully executed copy of such agreement or confirmation shall be provided to the City prior to building permit issuance. (D) Performance Agreements and Financial Security. The applicant shall execute a City- approved improvement agreement addressing the applicant's substation funding obligation under this Chapter. The agreement must be supported by performance, labor, and material security in an amount equal to 100% of the applicant's proportionate share of the estimated substation improvement cost, plus a warranty bond, in forms approved by the City Attorney. (E) Inspection, Acceptance, and Risk of Loss.
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 349 of 360 (1) Utility-owned substation facilities are subject to Serving Utility inspection and shall not be deemed adequate under this Chapter until they have been formally accepted by the Serving Utility in writing.
(2) The applicant remains financially responsible for all substation improvement obligations under this Chapter until the Serving Utility formally confirms in writing that the required System Capacity Improvement has been completed and accepted. 164.08 IN-LIEU FEE PROGRAM; ADOPTION AND COORDINATION.
(A) Adoption by Resolution. The Council may, at its discretion, adopt by resolution a voluntary In-Lieu Fee program. Such resolution may establish:
(1) Fee Methodology: The technical formula used to calculate a Project’s proportionate share of systemwide infrastructure impacts.
(2) Fee Schedule: A standardized schedule of costs per kVA of Net New Load or other objective engineering metrics.
(3) Eligible Improvements List: A list of System Capacity Improvements — limited to substations, substation capacity upgrades, and directly associated sub-transmission connections — that satisfy the Adequacy Standards of this Chapter. (4) Distribution-level facilities shall not be included on the Eligible Improvements List. (5) Citywide Benefit Confirmation: In accordance with Section 164.03(B), the entire incorporated limits of the City of Indio constitute the single, fixed Area of Benefit for all Eligible Improvements funded through this program. In-Lieu Fee revenues shall be pooled citywide. No resolution establishing sub-geographic benefit zones shall be adopted under this Chapter.
(B) Authorized Use of Funds. In-Lieu Fee revenues shall be used solely to fund the planning, engineering, land acquisition, environmental review, construction, and administrative costs associated with Eligible Improvements. This includes the "replenishment" of system capacity consumed by participating Development Projects.
(C) Coordination with IEFA and Other Funding. The Council may, by resolution, authorize the joint use of In-Lieu Fee revenues and IEFA Surcharge proceeds to fund "Projects" as defined under the IEFA Surcharge program.
(D) Periodic Updates. The Council may update the fee schedule or Eligible Improvements list by resolution as necessary to reflect changes in construction costs, utility tariffs, or grid adequacy requirements.
164.09 FEE CALCULATION AND TIMING OF PAYMENT.
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 350 of 360 (A) Calculation Methodology. The voluntary In-Lieu Fee shall be calculated by the Director based on the Proportionate Cost Estimate for the Eligible Improvements necessary to maintain grid adequacy. The calculation shall include:
(1) Capacity Demand: The Project’s Net New Load (kVA) as a percentage of the total capacity (kVA) created by the Eligible Improvement.
(2) Engineering & Civil Costs: The estimated "all-in" cost of the Eligible Improvement, including design, land acquisition, trenching, and utility equipment. (B) Timing of Payment. Unless otherwise authorized by a Development Agreement or a Council- approved deferral, the voluntary In-Lieu Fee shall be paid at the following milestones:
(1) Subdivisions: Prior to the recordation of the Final Map or the issuance of the first grading permit, whichever occurs first.
(2) Vertical Construction: For projects not involving a subdivision, the Fee shall be paid prior to the issuance of the first building permit.
(3) Discretionary Requirements: The approving authority may require payment at an earlier stage of entitlement if the funds are necessary to secure time-critical Eligible Improvements (e.g., long-lead substation equipment) required to serve the Project’s phasing.
(C) Deferral and Security. The Director may authorize a deferral of payment until one of the following, in the Director’s discretion: (1) the issuance of a Certificate of Occupancy, (2) the issuance of a building permit, or (3) the release of the utility meter, provided the applicant executes a lien agreement or provides other financial security in a form approved by the City Attorney.
164.10 CREDITS FOR IN-KIND CONSTRUCTION OR DIRECT PAYMENTS. (A) In-Kind Construction Credits. An applicant that directly funds or constructs Eligible Improvements (i.e., System Capacity Improvements) in satisfaction of the Standards shall receive a credit against the voluntary In-Lieu Fee.
(1) Valuation: The credit shall equal the lesser of: (i) the actual, reasonable, and documented cost of funding or construction as verified by a City-approved audit; or (ii) the estimated cost of said improvements as established in the City's Proportionate Cost Estimate or fee schedule.
(2) Scope: Credits shall only be granted for Eligible Improvements as defined in Section 164.03(G) (i.e., System Capacity Improvements consisting of substations, substation upgrades, and directly associated sub-transmission connections). Credits shall not be granted for on-site service connection infrastructure, distribution transformers, service laterals, or any other distribution-level facilities required solely for the Project's own
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 351 of 360 electrical service connection, as such facilities are not Eligible Improvements under this Chapter.
(B) Credits for Direct Utility Payments. An applicant shall receive a dollar-for-dollar credit against the In-Lieu Fee for any verified payments made directly to the Serving Utility (IID) for the same scope of System Capacity Improvements (i.e., substations and substation upgrades) included in the City's Eligible Improvements. To qualify, the applicant must provide a final reconciliation statement from the Serving Utility and proof of payment confirming the specific substation improvements funded.
(C) Excess Credits and Reimbursement. If the value of the credit exceeds the In-Lieu Fee otherwise due for the Project:
(1) No Cash Refund: The excess credit shall not result in a cash payment from the City unless the applicant has executed a formal Reimbursement Agreement pursuant to Section 164.11.
(2) Banking and Phasing: Unused credits may be "banked" and applied to future phases of the same Development Project.
(3) Non-Transferability: Credits are appurtenant to the land and the specific Project; they may not be sold, traded, or transferred to a different Project or a different geographic area without the express written consent of the Director and the execution of a transfer agreement.
164.11 REIMBURSEMENT; AREAS OF BENEFIT; OVERSIZING.
(A) Citywide Benefit Framework. The City Council finds that the entire incorporated limits of the City of Indio constitute a single, unified Area of Benefit for all System Capacity Improvements funded or required under this Chapter. Because the electrical grid serving Indio is an interconnected system, substation capacity improvements benefit all properties within the City regardless of the geographic proximity of any individual property to a specific substation facility.
In-Lieu Fee revenues collected from Development Projects throughout the City shall be pooled on a citywide basis and used exclusively to fund Eligible Improvements that maintain substation capacity adequacy citywide. No sub-geographic zones or separate areas of benefit shall be designated or established under this Chapter.
(B) Requirement for Oversizing. The City or the Serving Utility may require an applicant to fund or construct a System Capacity Improvement with substation capacity in excess of what is strictly necessary to serve the Project's Net New Load alone, in order to accommodate the projected cumulative growth within the City.
(1) Construction Obligation: The applicant shall be responsible for the full upfront cost of funding or constructing the Oversized substation capacity.
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 352 of 360 (2) Reimbursement Eligibility: An applicant who funds or constructs Oversized substation capacity is eligible for a Reimbursement Agreement for the "Oversized Portion," defined as the total cost of the substation improvement minus the applicant's own proportionate fair-share cost based on the Project's Net New Load relative to the total new substation capacity created.
(C) Reimbursement Agreements and Funding Sources. The Director may execute a Reimbursement Agreement with the applicant on behalf of the City. (1) Contingent Nature: Reimbursement is not a debt of the City's General Fund. It is strictly contingent upon the City's collection of voluntary In-Lieu Fees from subsequently developing properties within the City.
(2) IEFA Coordination: If the Oversized substation facility is an energy system improvement that enhances city-wide reliability, the City may coordinate with the Indio Electric Financing Authority to utilize surcharge revenues as a source for reimbursement, subject to a Project Agreement.
(3) Term: The term of any Reimbursement Agreement shall not exceed fifteen (15) years, unless a longer term is justified by the anticipated build-out period of the City and approved by the Council.
(D) Methodology for Pro-Rata Share. Reimbursement shall be based on objective engineering metrics verified by the Director, specifically the ratio of kVA demand consumed by subsequently developing properties within the City relative to the total substation capacity created by the Oversized facility.
(E) Assignment and Transfer. Reimbursement rights are appurtenant to the Development Project and may be assigned to a successor-in-interest only with the express written consent of the City. 164.12 COORDINATION WITH SERVING UTILITY; WILL-SERVE; NO CONFLICT. (A) Utility Primacy and Technical Standards. The City acknowledges that the Serving Utility retains final authority over the design, engineering, safety, and operational standards of the electrical distribution system within its service territory. Nothing in this Chapter shall be construed as an attempt by the City to regulate utility tariffs or system-level engineering. (1) APOC Designation: The Serving Utility shall remain the sole authority for designating the Adequate Point of Connection (APOC) for any Development Project. (2) Facility Acceptance: Utility-owned facilities shall not be deemed "adequate" under this Chapter until they have been inspected and formally accepted by the Serving Utility. (B) Mandatory Will-Serve Letter and Technical Study.
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 353 of 360 (1) Completeness Trigger: For all Development Projects subject to this Chapter, a current Will-Serve Letter and/or a Letter of Requirement (LOR) from the Serving Utility shall be required prior to the City’s determination that a discretionary land-use application is complete.
(2) Updating Requirements: If a Project’s Net New Load increases during the entitlement process, the Director may require an updated Will-Serve Letter to ensure continued grid adequacy.
(C) Resolution of Conflicts. This Chapter is intended to complement, not replace or conflict with, Serving Utility requirements or the resiliency initiatives of the Indio Electric Financing Authority (IEFA).
(1) Interpretation: To the maximum extent possible, this Chapter shall be interpreted to be consistent with the rules, regulations, resolutions, ordinances, surcharges and tariffs of Serving Utility and IEFA.
(2) Administrative Adjustment: If an unavoidable conflict arises between a City requirement and a rule, regulation, resolution, ordinance, surcharge or tariff of Serving Utility and IEFA, the Director is authorized to grant a Technical Adjustment to eliminate the conflict, provided the adjustment is the minimum necessary and still achieves the goal of grid adequacy.
164.13 IMPROVEMENT AGREEMENTS; SECURITY; ACCEPTANCE.
(A) Agreements. Where improvements are required under the Installation or Hybrid Path, the applicant shall execute an improvement agreement in a form approved by the City Attorney, which shall address scope, schedule, inspection, acceptance, warranties, risk transfer, insurance, and indemnity.
(B) Security. The City shall require performance and labor & materials security in amounts and forms consistent with the Subdivision Map Act and City standards. (C) Prevailing Wage; Public Works. Where improvements are constructed using Fee revenues or are to be owned by the City, the work is a “public work” subject to prevailing wage laws (Lab.
Code §1720 et seq.) and applicable public contracting requirements. (D) Ownership and Maintenance. Ownership of improvements shall be as specified by the Serving Utility or the City, as applicable. City‑owned improvements shall not be accepted until completion to City standards.
164.14 ADMINISTRATION; RULES AND REGULATIONS.
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 354 of 360 (A) The Director may adopt administrative rules, forms, and procedures to implement this chapter, including thresholds for de minimis exemptions, submittal requirements, credit documentation, and appeal forms.
(B) The Director may interpret the fee program and may make minor adjustments in calculation to address unique site conditions, provided such adjustments are consistent with the purposes of this chapter and supported by written findings.
164.15 ACCOUNTING.
The City shall deposit Fees in separate funds or accounts, shall not commingle funds except for investment, and shall expend funds only for Eligible Improvements. 164.16 APPEALS AND ADMINISTRATIVE RELIEF.
Any determination under this chapter, including Fee calculation, credit, or applicability, may be appealed to the City Manager within ten (10) calendar days of the determination. The decision of the City Manager shall be final.
164.17 ENFORCEMENT; PENALTIES; WITHHOLDING OF PERMITS.
(A) It is unlawful to fail to comply with this Chapter. The City may withhold or revoke permits, approvals, inspections, or certificates of occupancy for noncompliance. (B) Violations are subject to the administrative citations and remedies provided for in this Code and any other remedy available at law or in equity.
164.18 RELATION TO OTHER LAWS; CONFLICTS.
(A) This chapter is intended to supplement, not replace, the City’s subdivision, zoning, and encroachment regulations. Where a conflict occurs, the more specific requirement that furthers the purpose of this chapter shall control, to the extent not preempted by state law or Serving Utility authority.
(B) Nothing herein limits the City’s authority to require other public improvements reasonably related to a Project’s impacts.
164.19 INDEXING AND FEE UPDATES.
(A) Fees may be adjusted annually by resolution based on a recognized construction cost index or utility cost index identified in the fee program.
(B) The City may undertake comprehensive updates to the fee schedule as needed to reflect cost changes, system plans, or policy updates.
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 355 of 360
ORDINANCE NO. ___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA, ADDING CHAPTER 164 (ELECTRICAL INFRASTRUCTURE AND DEVELOPMENT) TO THE INDIO MUNICIPAL CODE; ESTABLISHING THE CITY OF INDIO
ELECTRICAL INFRASTRUCTURE ADEQUACY AND DEVELOPMENT
STANDARDS ORDINANCE; AUTHORIZING A VOLUNTARY SUBSTATION CAPACITY IN-LIEU FEE PROGRAM; MAKING FINDINGS PURSUANT TO THE MITIGATION FEE ACT (GOVERNMENT CODE § 66000 ET SEQ.); AND MAKING
FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT WHEREAS, the City of Indio (“City”) is a municipal corporation organized and existing under the laws of the State of California, with full authority to adopt and enforce ordinances for the protection of the public health, safety, and general welfare pursuant to Article XI, Section 7 of the California Constitution and the general police powers conferred upon California charter and general law cities; and
WHEREAS, the City Council has identified the provision of adequate electrical infrastructure, and specifically the maintenance of sufficient substation capacity to serve cumulative growth, as a critical component of the City's long-term land use, infrastructure, and public safety strategy; and
WHEREAS, the City of Indio is experiencing significant residential, commercial, and industrial development activity that, in the aggregate, creates substantial and growing incremental demand on the electrical distribution system serving the City, including the high-voltage substations and sub-transmission facilities operated within the City's incorporated limits; and WHEREAS, the City Council finds that the electrical grid serving the City of Indio is a singular, interconnected network, and that every Development Project generating Net New Load directly and measurably consumes a discrete portion of available substation capacity that is, the thermal and voltage headroom available at the substation level regardless of the Development Project's specific geographic location within the City; and
WHEREAS, because substation capacity is a shared, interconnected resource serving the entire City, the cumulative impact of new development on that capacity is a citywide infrastructure concern affecting all properties, residents, businesses, and public facilities within the City, and therefore the entire incorporated limits of the City of Indio constitute a single, unified Area of Benefit for all purposes of this Ordinance and Chapter 164; and WHEREAS, the City Council further finds that insufficient substation capacity poses a direct threat to public safety and service reliability, including but not limited to the risk of electrical brownouts, equipment overloading and failure, increased risk of electrical fires, and the degradation of essential electrical service to existing customers, all of which have direct adverse effects on the health, safety, and welfare of the residents, businesses, and institutions of the City of Indio; and
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 356 of 360
WHEREAS, the City Council finds that a voluntary In-Lieu Fee program under which applicants may elect to pay their proportionate fair share of the cost of City-coordinated substation improvements in lieu of direct construction may be in many cases technically and economically superior to project-by-project substation construction, will provide equitable cost allocation among all projects contributing to cumulative substation demand, and is fully consistent with the interconnected, citywide nature of substation capacity constraints; and WHEREAS, the City Council finds that there is a direct and essential legal nexus between the approval of Development Projects that generate Net New Load and the requirement to provide substation capacity improvements, because the approval of such projects, absent corresponding substation improvements, will result in substation overloading that degrades safety and reliability for all customers served by the impacted substation; and WHEREAS, the City Council hereby makes the following findings:
(a) The purpose of the voluntary In-Lieu Fee is to fund the planning, engineering, land acquisition, environmental review, permitting, and construction of System Capacity Improvements, specifically substations, substation upgrades, and directly associated sub- transmission connections, that are necessary to accommodate the cumulative Net New Load generated by Development Projects within the City and to maintain substation capacity adequacy on a citywide basis.
(b) In-Lieu Fee revenues shall be deposited into a dedicated, non-commingled fund and used solely for the costs associated with Eligible Improvements, including reasonable planning, design, environmental review, land acquisition, construction, and administrative costs directly related to such improvements.
(c) There is a reasonable relationship between the use of the In-Lieu Fee and the type of development project on which it is imposed, because the fee applies only to Development Projects that generate Net New Load, and fee proceeds are used exclusively to fund System Capacity Improvements that expand substation capacity to serve that Net New Load.
Development Projects generating no Net New Load are not subject to the fee. (d) There is a reasonable relationship between the need for substation capacity improvements and the type of development projects subject to Chapter 164, because each Development Project that generates Net New Load directly consumes a measurable portion of available substation thermal capacity. Without System Capacity Improvements to replenish consumed capacity, substation overloading would result, impairing safety and reliability for all customers served by the affected substation. The need for substation improvements is thus a direct and quantifiable consequence of development activity; and
WHEREAS, the City Council finds that the specific In-Lieu Fee amount and the finding of rough proportionality between that amount and the cost of Eligible Improvements attributable to each class of Development Project shall be separately established and confirmed by the City Council at the time it adopts the Fee Schedule; and
Second reading of Ordinance No. 1832 (“City of Indio Electrical Infrastr... Page 357 of 360
WHEREAS, the City Council finds that Chapter 164 is expressly structured to prevent duplicative exactions and to protect applicants against double-payment: any applicant who demonstrates payment to Imperial Irrigation District (“IID”) for the same scope of System Capacity Improvements designated by the City as Eligible Improvements shall receive a dollar- for-dollar credit against any In-Lieu Fee obligation; and any infrastructure project already fully funded by the surcharge program administered by the Indio Electric Financing Authority ("IEFA") shall be ineligible for inclusion as an Eligible Improvement under Chapter 164's In- Lieu Fee program; and
WHEREAS, the City Council acknowledges that IID, as the Serving Utility, will have authority over the design, engineering, safety standards, and tariff regulations applicable to the electrical distribution system within the City of Indio, and that Chapter 164 is expressly intended to complement, and not to supersede, conflict with, or interfere with, IID's utility authority, the IID tariff, or the IEFA's resiliency and infrastructure financing programs; and WHEREAS, the City Council finds that adoption of this Ordinance is exempt from CEQA under the common-sense exemption established by CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that the adoption of a regulatory and fee framework which authorizes no specific physical construction has no possibility of causing a significant effect on the environment. Each specific System Capacity Improvement to be funded through the In-Lieu Fee program shall be separately evaluated for CEQA compliance at the time of its individual review and approval; and
WHEREAS, the City Council has reviewed and considered the staff report, all supporting technical documentation, the proposed text of Chapter 164 in the form attached as Exhibit A, and all public testimony and written comments submitted in connection with this proceeding, and finds that the adoption of this Ordinance and Chapter 164 is consistent with the City's General Plan, is in furtherance of the public health, safety, and general welfare of the City and its residents, and is supported by substantial evidence in the record.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. RECITALS INCORPORATED AS FINDINGS.
The recitals set forth above are true and correct and are hereby incorporated into this Ordinance as legislative findings of the City Council. These findings shall serve as the record support for the requirements and standards established by Chapter 164.
SECTION 2. CEQA FINDINGS.
The City Council hereby finds and determines, on the basis of the recitals set forth above, that this Ordinance is exempt from CEQA pursuant to the common-sense exemption of CEQA Guidelines Section 15061(b)(3), in that it can be seen with certainty that there is no possibility that adoption of this Ordinance, standing alone, will have a significant effect on the environment.
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Each individual System Capacity Improvement project to be funded through the In-Lieu Fee program shall be separately evaluated for CEQA compliance at the time of its individual project- level review and approval.
SECTION 3. IN-LIEU FEE.
The City Council further confirms that the specific In-Lieu Fee amounts, and the finding of rough proportionality between the fee amount and the cost of Eligible Improvements attributable to individual Development Projects, shall be separately established by the City Council at the time it adopts the Fee Schedule by resolution.
SECTION 4. ADOPTION OF CHAPTER 164.
Chapter 164, entitled "Electrical Infrastructure and Development," is hereby added to the Indio Municipal Code in the form attached to this Ordinance as Exhibit A, which is incorporated herein by this reference as though set forth in full.
The provisions of Chapter 164 shall be known and may be cited as the "City of Indio Electrical Infrastructure Adequacy and Development Standards Ordinance," as provided in Section 164.01 thereof.
SECTION 5. CODIFICATION.
The City Clerk is hereby directed to cause Chapter 164, as set forth in Exhibit A, to be incorporated into the Indio Municipal Code and to transmit a certified copy of this Ordinance to the City's municipal code publisher for codification. The City Clerk is authorized to make any non-substantive technical, formatting, or cross-reference corrections necessary to ensure proper and consistent codification, provided that no such correction shall alter the substantive meaning or legal effect of any provision of Chapter 164.
SECTION 6. PROGRAM EFFECTIVE DATE.
(a) Infrastructure Standards Operative on Effective Date. The electrical infrastructure adequacy standards, applicability triggers, compliance pathway requirements, Will-Serve Letter requirements, and installation path standards shall be operative and enforceable as conditions of development approval upon the effective date of this Ordinance. (b) Fee Program Deferred Pending Resolution. The voluntary In-Lieu Fee and the In-Lieu Fee Path shall not become operative as a payment mechanism until the City Council adopts the Fee Schedule by resolution, which may occur concurrent with the adoption of this Ordinance or at such later date as the City Council may determine. Prior to such adoption, applicants shall be required to satisfy the Infrastructure Adequacy Standards by proceeding under the Installation Path, or through a Development Agreement expressly providing alternative compliance.
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SECTION 7. NO CONFLICTING PROVISIONS.
Any provision of the Indio Municipal Code, or any resolution or administrative regulation previously adopted by the City, that directly conflicts with the provisions of Chapter 164 as adopted by this Ordinance is hereby superseded to the extent of such conflict. All other provisions of the Indio Municipal Code, and all other duly adopted resolutions and regulations of the City, shall remain in full force and effect.
SECTION 8. SEVERABILITY.
If any section, subsection, paragraph, sentence, clause, phrase, or word of this Ordinance or of Chapter 164, or the application thereof to any person, entity, or set of circumstances, is for any reason held by a court of competent jurisdiction to be invalid, unconstitutional, or unenforceable, such decision shall not affect the validity of the remaining provisions of this Ordinance or Chapter 164, or their application to other persons, entities, or circumstances. The City Council hereby declares that it would have adopted this Ordinance and each provision thereof, irrespective of the fact that any one or more provisions may be declared invalid or unconstitutional. If the In-Lieu Fee program is determined to be invalid or unenforceable, that determination shall not affect the validity or enforceability of the Infrastructure Adequacy Standards, applicability triggers, Installation Path requirements, or any other provision of Chapter 164 that does not depend upon the fee program for its operation.
SECTION 9. ORDINANCE EFFECTIVE DATE.
This Ordinance shall take effect thirty (30) days after the date of its adoption by the City Council.
SECTION 10. PUBLICATION AND POSTING.
The City Clerk shall cause this Ordinance and Chapter 164 to be published and/or posted in the manner required by state law.
SECTION 11. CERTIFICATION.
The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be entered in the book of original ordinances of the City of Indio. [Adoption/Signatures]
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