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Ordinance 1989-17 ORDINANCE NO. 89 - 17 AN ORDINANCE OF THE CITY OF GILROY AMENDING PARAGRAPH (5) OF SECTION 22.35 A~ ENACTING CHAPTER 21, ARTICLE V OF THE GILROY CITY CODE PERTAINING TO REQUIREMENTS FOR UNDERGROUNDING UTILITIES In order to fulfill the requirements of Sections 66000 et.seq, of the Government Code, the Council makes the following findings: A. The fees collected pursuant to this ordinance will be used to fund the conversion of overhead utility facilities to underground facilities. B. There is a reasonable relationship between the use of undergrounding fees and the types of development projects upon which the fees will be imposed, in that the fees will be collected on single lot developments and will be accumulated and used for utility undergrounding projects in areas other than new subdivisions. C. There is a reasonable relationship between the need for undergrounding fees and the types of development projects upon which the fees will be imposed, in that the projects upon which the fee will be imposed are those in areas of the City subject to the most significant development and traffic volumes, and therefore in greatest need of utility undergrounding in order to reduce visual clutter and blight and increase safety. D. There is a reasonable relationship between the amount of undergroundtng fees to be imposed upon a particular development project and the cost of utility undergrounding attributable to that project, in that the amount of the fee is based upon (1) the length of street frontage for a particular project, and (2) the actual, current, per-foot costs from time to time of replacing overhead utility lines with underground utility lines. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES ORDAIN AS FOLLOWS: SECTION I. Paragraph (5) of Section 22.35 of the Gilroy City Code is amended to read as follows: ORDINANCE NO. 89-17 -1- (5) Installation of undergrpund .utility lines, etc.; exceptions. New and existing utility lines, appurtenances and associated equipment, including, but not limited to electrical transmission, communication transmission, street lighting, and cable television shall be required to be placed underground as required in Article V of this Chapter starting with Section 21.111. SECTION II. Chapter 21, Article V of the Gilroy City Code is enacted to read as follows: CHAPTER 21 ARTICLE V. REQUIREMENTS FOR UNDERGROUNDING UTILITIES Sec. 21.111 Purpose for Article The purpose of the utility undergrounding fee program established in this Article is to implement the urban design policies of the General Plan for the City of Gilroy, by requiring new development to contribute to a fund which shall be used solely for the conversion of overhead utility facilities to underground facilities. Sec. 21.112 Development Project - Definition For the purposes of this Article, "development project" shall include any building when additions, alterations, or repairs within any 12-month period exceed 50 percent of the value of the building or structure if any portion of the property is served by overhead utility facilities or has any frontage on a street, alley, or easement which has overhead utility facilities. Sec. 21.113 Overhead Ut!~i~.y Facilities - Definition For the purposes of this Article, "overhead utility facilities" means aboveground wires, poles, and associated facilities supplying electric, communication, or similar services. Facilities used for the transmission of electric energy at nominal voltages of thirty four thousand five hundred volts or more shall be exempt from the provisions of the Article. Sec. 21.114 Fee Required Unless otherwise exempt under the provisions of this Article, approval of a development project in the City as defined in Section 21.112 shall be subject to a condition for the payment of a utility undergrounding fee in the amount and in the manner set forth in this Article. The service location for the project will determine, in the case of multiple frontages with overhead utility facilities, which frontage is used to calculate the fee. The fee will be calculated based on the length of the frontage from which the utility service originates. In cases where both sides of the overhead utility facility provide service, each side of the street, alley, or easement will be subject to the fee. In cases where only ohe side provides service, the side which is served will be subject to the fee multiplied by two. Sec. 21.115 Time for Payment The utility undergrounding fee shall be paid to the City in full prior to issuance of a Building Permit. Sec. 21.116 Underground Util~.~ Fund - Use of Fees Ail fees collected pursuant to the provisions of this Article shall be placed in the Underground Utility Fund established by this section of the Gilroy Municipal Code. ORDINANCE NO. 89 - 17 -2- Be Ail fees collected pursuant to the provisions of this Article shall be used solely for the conversion of overhead utility facilities to underground facilities within the City. The fees may be used for any and all of the following purposes: Payment to utility companies for the cost of replacement of their existing overhead utility facilities with underground facilities in the public right-of-way, in accordance with PUC Rules No. 20 or Tariff Schedule Cal. PUC No. A2 Rule No. 32: 2. City costs to convert City overhead utility facilities to underground facilities; 3. Contributions to underground utility districts; ® Payment of City expenses for staff, equipment, supplies and overhead associated with the establishment and administration of undergrounding projects eligible for funding under this Article; Nothing in this Article is intended to affect the amount of reimbursement which would otherwise be paid to utilities, under applicable laws, rules, regulations and tariffs, for undergrounding of utilities. Sec. 21.117 Amount of Fee The undergrounding utility fee shall be established from time to time by Council Resolution based on current construction costs. Sec. 21.118 Exemptions The following projects are exempt from the provisions of this Article: ao Projects for which street frontage is solely adjacent to a street or streets within an Underground Utility District established prior to July 1, 1989. Bo Projects on a site for which a total of 100% of the base fee has been paid as satisfaction of a condition or conditions imposed upon prior to development on that site. Ce Projects for which the Director of Public Works determines underground installation of overhead utility facilities would be unreasonable or impractical due to physical constraints such as topography or soil conditions. D. Exemptions authorized by the City Council, upon recommendation of the Planning Commission, as enumerated in Section 26A.6 of this Code. ORDINANCE NO. 89 - 17 -3- Authorizing exceptions for one portion of a development shall not affect the requirements for the balance of that development. Sec. 21.119 Subdivision of Residential Lands At the discretion of the Director of Public Works, a subdivision of land zoned for residential purposes may be exempted from the requirements of this Article if the land is being divided into parcels larger than that appropriate for residential lots, and further subdivision of the property will be required prior to development of the land for residential purposes. Sec. 21.120 Undergrounding Required - New Streets Ail overhead utility facilities within newly constructed public streets shall be placed underground. No utility undergrounding fee shall be required for any frontage of a development project which is adjacent to a street which will be improved, including utility undergrounding, as a condition of such project. Sec. 21.121 Credits and Limitations on Fee Ae If the project applicant has requested to install underground conduit for future undergrounding, the Director of Public Works may, at his discretion, allow a credit for the cost of installation of said conduit against the Underground Utility Fee. Bo If land for which a utility undergrounding fee has been paid becomes part of an improvement district for which improvements include the undergrounding of utilities adjacent to such land, such land shall receive a credit towards any assessment imposed thereon in an amount equal to the amount of the utility under-grounding fee paid prior to establishment of the improvement district. Funds in the amount of such credit shall be transferred from the Utility Undergrounding Fund to the appropriate improvement district fund. Sec. 21.122 Refunds Utility undergrounding fees paid to the City pursuant to this Article may be refunded in whole or in part, upon a determination by the Director of Public Works that: A. The fee or a portion thereof was collected in error; Be The condition of development approval requiring payment of the fee is amended after payment of the fee to provide that the fee is not required or the amount thereof is reduced; or Ce Approval of the development project expires or is revoked, and no development thereunder has commenced prior to said expiration or revocation. Sec. 21.123 Election to Underground Utilities as a Part of Project At the discretion of the Director of Public Works, approval of a development project may be conditioned upon actual undergrounding of overhead utility facilities on the street or streets adjacent to the project, rather than payment of fees pursuant to this Article, if: A. The project applicant alone or together with owners of adjacent properties, has committed to establishment of a Rule 20B/Tariff Schedule ORDINANCE NO. 89 - 17 -4- Cal. P.U.C. No. A2, Rule No. 32, A.2 underground utility district which will cause undergrounding of all overhead utility facilities in the street or streets adjacent to the project site, or Be The project applicant has requested to undertake actual undergrounding of all overhead utility facilities in the street or streets adjacent to the project site. SECTION III. Ail other ordinances and parts of ordinances in conflict herewith are hereby repealed. SECTION IV. This ordinance shall take effect and be in full force thirty (30) days from and after its adoption and approval. PASSED AND ADOPTED this 16th day of October, 1989, by the following vote: AYES: COUNCILMEMBERS: GAGE, HALE, KLOECKER, MUSSALLEM, PALMERLEE, NOES: ABSENT: ATTEST: VALDEZ and HUGHAN. COUNCILMEMBERS: None COUNCILMEMBERS: None -5- ORDINANCE NO. 89 - 17 I, SUSANNE E. STEI~'.~,=m~..,~,~, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No.89-17 is an original ordinance, duly adopted by the CounCil of the City of Gilroy at a regular meeting of said Council held on the 16th day of October, 19 89 , at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the offi~al seal of the City of/~ilroy, this 20_Ith City Clerk of the City of Giiroy 0 (Seal) day of November, 19 89