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O 602ORDINANCE NO. 602 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING SECTION 16.68.050 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING UNDERGROUND UTILITIES WHEREAS, the City of Arroyo Grande ("City") requires the undergrounding of utilities as a condition of discretionary land use approvals, pursuant to Municipal Code Section 16.68.050; and WHEREAS, the entire community benefits from the enhanced safety, improved appearance and reliability of utility services which results from the orderly undergrounding of existing utilities; and WHEREAS, the City desires to specify situations when utilities are required to be placed underground, when in-lieu fees can be accepted and when projects are exempt from both requirements; and WHEREAS, the proposed changes to the Municipal Code will better enable the City to concentrate utility undergrounding efforts in areas determined to be in the most critical need of utility undergrounding and in previously established underground utility districts; and WHEREAS, the City Planning Commission held a public hearing on April 15 and May 20, 2008 and recommended changes to Municipal Code Section 16.68.50 and; WHEREAS, after consideration of all testimony and all evidence, the City Council has determined that the following findings can be made in an affirmative manner: A. The proposed revision to the Municipal Code is consistent with the goals, objectives, policies and programs of the General Plan including ED4-1.2 (ensure comprehensive design guidelines pertaining to both public and private improvements), ED-6, (promote affordable housing) and CT4-2 (utilize the circulation system as a positive element of community design), and is necessary and desirable to implement to provisions of the General Plan. B. The proposed revision to the Municipal Code will not adversely affect the public health, safety, and welfare or result in an illogical land use pattern since the proposed changes allows the City to better utilize in-lieu funds for placing utilities underground. C. The proposed revision to the Municipal Code is consistent with the purpose and intent of the undergrounding section. ORDINANCE NO. 602 PAGE 2 D. The City has conducted an environmental review and has found that it can be seen with certainty that there is no possibility that the proposed Ordinance will have an effect on the environment and therefore this project is exempt from the provisions of CEQA, pursuant to CEQA Guidelines Section 15061(b)(3). NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo Grande, as follows: SECTION 1: The above recitals and findings are true and correct SECTION 2: Arroyo Grande Municipal Code Section 16.68.050 is hereby repealed and replaced in its entirety as follows: 18.68.050 Underground utilities. A. Purpose and Intent. The purpose of this section is to implement policies of the general plan by requiring new development to place existing overhead utilities underground or contribute to a fund that shall be used solely for the conversion of overhead utilities to underground utilities. These policies further the public health, safety and welfare by 1) increasing the aesthetic appearance of residential, commercial and mixed use areas by avoiding or eliminating the concentration of overhead service and distribution facilities, 2) promoting the safe and orderly control of pedestrian and vehicular traffic along streets, roads or rights-of-way, and 3) providing a coordinated and economical method of placing existing utilities underground. B. Applicability. 1. Service Drops a. All projects (discretionary or ministerial) that involve the addition of over 100 square feet of habitable space shall be required to place service connections underground. b. Service connections that require offsite work - If the cost of work to underground off-site portion of the service connections as determined by standard construction estimation techniques by the Building Official or Director of Public Works, is greater than 25 percent of the overall cost of the project, exclusive of utility undergrounding, the City shall eitherwaive the requirement to underground the service connection orfund a portion of the cost sufficient to reduce the cost to less than 25 percent. 2. Utility Distribution Lines a. Unless otherwise exempted by law or the provisions of this section, the requirement to place utilities underground shall apply to all tentative tract and parcel maps, conditional use permits and variances. Additionally, where permitted by applicable law, the city council may require the undergrounding of utility lines as a condition of approval of an application for an extension of time for the above designated project types. b.Underground installation is required of all overhead electrical distribution lines of less than one hundred fifteen thousand (115,000) volts, utility service connections, ORDINANCE NO. 602 PAGE 3 telephone, cable television and similar service wires or cables which: i. Provide direct service to the property being developed; or ii. Are existing and located within the boundaries of the property being developed; or iii. Are existing between the property line and the centerline of the adjacent streets of the property being developed; or iv. Are located along or within six feet of the front property line of the property to be developed. b. To the greatest extent feasible, all undergrounding of utilities shall preclude the installation of new poles unless it is necessary to replace an existing pole that is deemed to be in unsatisfactory condition. C. In-Lieu Fee. On the basis of a formal written request to the approving authority, an in- lieu fee may be considered instead of the required undergrounding of utilities for the following: 1. Projects located within duly established Underground Utility Districts. 2. Tentative parcel maps if special and unique circumstances exist, as determined by the Planning Commission or City Council, such as the presence of a disproportionate amount of wires and utilities on the property, which prevent an economically feasible conversion. 3. Infill mixed use projects on an existing lot less than 10,000 square feet in which the residential component consists solely of four or less rental apartments. 4. Upon the recommendation from the Director of Public Works or the Community Development Director that such requirement for undergrounding would be detrimental to economic development, affordable housing or the provision of other public amenities or benefits. D. Reduced in-lieu fee. For projects that are eligible for consideration of in-lieu fee as settorth in Section C above, the approving authority may require the payment of a reduced fee totaling between 10 percent and 50 percent of the standard fee for any of the following: 1. The cost of undergrounding or the calculated in-lieu fee, ;~a~ separately will exceed 40 percent of the proposed project cost exclusive of undergrounding, as determined by standard construction estimation techniques by the Building Official or Director of Public Works. 2. City initiated economic development and streetscape enhancement projects authorized by the City Council. 3. Projects providing affordable housing units in excess of City requirements. E. Calculation and collection of fees 1. Underground utility in-lieu fees shall be calculated per linear foot of frontage for each side of the property with overhead utility lines on or off of the project property that would have been required to be placed underground. 2. Underground utility in-lieu fees shall be paid prior to issuance of the final map or building permit. ORDINANCE NO. 602 PAGE 4 3. The amount of the underground utility in-lieu fee shall be established by resolution of the City Council. 4. Underground utility in-lieu fees collected by the City shall be deposited in a separate fund and shall be used solely for the planning, design, administration and implementation of utility undergrounding. F. Responsibility for Compliance. The applicant or owner is responsible for complying with the requirements of this section, and he or she shall make all necessary arrangements with the appropriate utility company for the installation of such facilities. When arrangements are made with the serving utility company, a letter stating that arrangements have been made for underground facilities and such other comments the utility company may have regarding easements, utility locations, and other pertinent matters must be submitted by the utility company to the City Engineer. Plans and specifications for such utility undergrounding shall be sized to accommodate other utilities and are subject to the approval of the City Engineer. SECTION 3: If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. SECTION 4: A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the Director of Administrative Services/City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the Director of Administrative Services/City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION 5: This Ordinance shall take effect thirty (30) days after its adoption. On motion by Councilmember Costello, seconded by Council Member Guthrie, and by the following roll call vote, to wit: AYES: Council Member Costello, Guthrie, Arnold, Fellows, and Mayor Ferrara NOES: None ABSENT: None the foregoing Ordinance was adopted this 24`" day of June 2008. ORDINANCE NO. (aOZ. PAGE 5 TON FE ,MAYOR ATTEST: KELLY WE MO E, CITY CLERK APPROVED AS TO CONTENT: STE N ADAMS, CITY MANAGER APPROVED AS TO FORM: ~/~-. ~ J~ TIM THY J. L, CITY ATTORNEY OFFICIAL CERTIFICATION I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached. is a true, full, and correct copy of Ordinance No. 602 which was introduced at a regular meeting of the City Council/Redevelopment Agency on June 10, 2008; was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 24~' day of June- 2008; and was duly published in accordance with State law (G.C. 40806). WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 25~' day of June 2008. KELLY ET ORE, CITY CLERK