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Ordinance adding Chapter 13.06 (“Utility Pavement Cut Fee”) to Title 13 (“Public Improvements”) of the South San Francisco Municipal Code to establish a recovery fee for utility cuts in City streets.
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WHEREAS, the City of South San Francisco is responsible for maintaining 140 centerline miles of street pavements. The City currently has an average pavement condition index score of 76. In 2023 the City sought professional consulting services to assist in evaluating the impacts of utility cuts and heavy construction vehicles on the City’s street network; and
WHEREAS, existing pavements frequently need to be cut in order to access and service utility infrastructure and their underground equipment; and
WHEREAS, this type of excavation in paved streets degrades and shortens the life of the surface of the streets, and this degradation increases the frequency and cost to the public of necessary resurfacing, maintenance, and repair; and
WHEREAS, the City’s funding sources will not be sufficient to prevent some of the City’s streets from deteriorating due to the impacts of utility cuts; and
WHEREAS, the Utility Pavement Cut Fee adopted herein is considered a fee pursuant to Article XIII C section 1(e) of the California Constitution, which excludes such fees from the definition of “tax;” and
WHEREAS, this Ordinance does not conflict with provisions of State law, including but not limited to, Public Utilities Code sections 7901 and 12808 related to interstate telecommunications franchises because the fees hereunder are not charged for the same right granted by State law, but instead are charged to recover costs of mitigating the degradation that the excavation causes to City pavement and the increased cost to the City in reconstructing a street that has been patched following an excavation; and
WHEREAS, this Ordinance is in conformance with Section 253(C) of the Federal
Telecommunications Act of 1996 which expressly recognizes the authority of local governments to impose reasonable nondiscriminatory fees upon telecommunications providers using the public right-of-way, as well as California Government Code 50030 which specifically authorizes the imposition of a permit fee that do not exceed the reasonable costs of providing the service for which the fee is charged; and
WHEREAS, based on all of the information at the September 24, 2025 and October 8, 2025 City Council meetings, both written and oral, including without limitation the public comment, staff reports, minutes, and other relevant materials (hereafter the “Record”), the City Council finds that under CEQA Guidelines Section 15061, addition of this Ordinance does not constitute a project under CEQA as it will not result in any direct or indirect physical change to the environment and therefore review under CEQA is not required pursuant to CEQA Guidelines Section 15060.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Findings
The City Council of South San Francisco finds that all Recitals are true and correct and are incorporated herein by reference.
SECTION 2. Addition of Chapter 13.06 to Title 13
The City Council hereby adds Chapter 13.06 to the South San Francisco Municipal Code to read as follows:
CHAPTER 13.06 UTILITY PAVEMENT CUT FEE
13.06.010 Purpose.
Excavations in paved streets owned and maintained by the City degrade and shorten the life of the surface of the streets, and this degradation increases the frequency and cost to the public of necessary resurfacing, maintenance and repair. These excavations cause degradation of the streets even where the excavations are refilled and repaired in conformity with applicable standards and requirements. It is appropriate that entities responsible for excavating into the City right of-way bear the burden of the resulting cost of this degradation and shortened life of the surface rather than the taxpayers of the City. In addition, establishment of a Utility Pavement Cut Fee will create an incentive for utilities to coordinate excavations in the streets with the City. This chapter shall not be construed to relieve those excavating into the City right-of-way of the obligation to fill, repair and properly maintain the location of the excavation.
13.06.020 Utility Pavement Cut Fee established.
(a) No person shall excavate in a public right-of-way without, in addition to all other requirements of this Code, having first paid to the City a “Utility Pavement Cut Fee.”
(b) The City Council shall, in a resolution adopted after a duly noticed public hearing, set forth the amount of the fee, describe the need for the fee, and describe the reasonable relationship between the fee and the various types of future development.
13.06.030 Timing of payment.
The fees due under this chapter shall become due and payable to the City at the time of the issuance of permits required pursuant to Section 13.04.010.
13.06.040 Exceptions.
No Utility Pavement Cut Fee shall be charged for:
(a) Excavations in City streets scheduled for pavement structural improvements within two years of the date of excavation.
(b) Underground utility district projects initiated by the City, or utility line relocations necessitated by City street work projects or by street vacations or abandonments.
(c) Excavations performed by or for the City.
(d) Excavations in a sidewalk or excavations in City streets that are less than 25 square feet in size.
(e) Repair work required by the Director of Public Works or their designee or any other relocations required by the City.
(f) Pavement cuts related to fixing a sewer lateral.
13.06.050 Variance from payment of Utility Pavement Cut Fee.
(a) Any person subject to the Utility Pavement Cut Fee may request that the Director of Public Works or their designee waive or reduce the requirement of payment of the fee due to individual circumstances that demonstrate, on a case-by-case basis, that the amount of the fee is not reasonably related to the projected impact of the proposed excavation.
(b) The decision of the Director of Public Works or their designee may be appealed to the City Manager by letter within five (5) City business days of the date of the Director’s or designee’s decision. Appeals shall state the name, address, telephone number, and, if available, the email address of the person making the appeal and the reason(s) for the appeal. The City Manager may delegate all of the duties of this section to another person. The decision of the City Manager or designee is final.
(c) The failure to appeal the Director’s or designee’s decision or to file a timely appeal shall render the Director’s or designee’s decision final and the right to appeal is waived. The timeliness of an appeal shall be determined from the date the City Manager received said appeal.
(d) No fee shall be charged for an appeal.
13.06.060 Use of fee revenues.
The fees paid in accordance with the provisions of this section shall be placed in a special fund to be known as the Pavement Recovery Fee Fund. The revenues from the fees will be used for restoration and maintenance of City pavement and other related costs and for the purposes outlined in this chapter and by resolution, consistent with the purposes of the fee.
SECTION 3. Severability
If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed the Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of this Ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. Publication and Effective Date
Pursuant to the provisions of Government Code Section 36933, the City Attorney shall prepare a summary of this Ordinance. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk’s Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk’s Office a certified copy of the full text of this Ordinance.
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