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HomeMy WebLinkAbout02/21/1989, C-4 - AMENDMENT OF CHAPTERS 13.04, 13.08 AND 16.44 OF THE MUNICIPAL CODE RELATING TO SEWER AND WATER MAIN MEEnNG DATE: city Of San tins OBISPO Feb. 21, 19 COUNCIL AGENDA REPORT REnn NUMB 00 FROM: David F. Romero pie Wayne A. Peters William T. Hetland Public Works Director City Engineer Utilities Director SUBJECT: Amendment of Chapters 13.04, 13.08 and 16.44 of the Municipal Code Relating to Sewer and Water Main Extensions and Reimbirsements for Installation of Public Facilities for Other Developers. RECOMMENDATION: Pass to Print the Proposed Ordinance Amending Chapters 13.04, 13.08 and 16.44 of the Municipal Code. BACKGROUND: Some time ago the Council requested that staff look into the possibiltiy of providing the means for a builder of street improvements to be reimbursed for costs which directly benefit abutting property owned by others. Another ordinance Is scheduled as a part of this agenda item which, if adopted, would specifically provide for that. It refers to this proposed ordinance for the procedures This ordin nce also recodifies portions of the code that formerly had been used to provid only for reimbursement to developers Nho had installed water and sewer mai s. The reason for the changes proposed is primarily to provide general r imbursement sections for ease of reference. This makes staff's work much easier because all such programs will be fcllowing the exact some provision s. Additionally, certain sections of the water and sewer regulations-Chapters 13.04 and 13.08--provide methods whereby developers can come to the City and, by depositing money with the City, request that the City design, contract for and build water and sewer main extentions to serve their projects. These portions of the code have not been used in a long time. It is staff's desire not to provide this service. These sections are being deleted in the recommended amended regulations. If a developer wishes to extend a main there is no reason why he cannot provide the engineering and contract administration and request City plan check and inspection under a standard inspection or subdivision agreement. STAFF REVIEW: Both the Public Works Department and the Utilit} Department strongly support these proposed changes. The City Attorney has reviewed the changes and approves them as to form and legal effect. The City Attorney notes that the reimbursement provisions for supplemental street requirements are somewhat unusual and are not specifically authorized by the state enabling legislation found in the Subdivision Map Act. r 101111111%4% City Of Sarr-Luis OBisp0 COUNCIL AGENDA REPORT Municipal Code Chapter 13.04, 13.08 and 16.44 Meeting of February 21 , 1989 Page Two. FISCAL IMPACT:. The portions of the ordinance rechaptering the reimbursement provisions will result in no additional expense to the City. Repealing the provisions of the Code that allow a developer to request the City to design, and contract for a utility main extention may save the City money and prevent city staff from being interrupted to do non-city contract plans. Based on the fact that no requests for this service have been received in many years no savings or expense is expected. OTHER RELATED ISSUES: The Council has expressed concern relative to need to notice benefitting property owners of potential expenses related to the development of their property. A separate report is being proposed by staff to address this concern. It will be coming to the Council at a future meeting. STAFF RECOMMENDATION: Staff Recommends that Council pass to print the proposed ordinance. Attachments: 1 - Ordinance 2 - Summary Ordinance 3 - Legislative Draft n/w13-0408 by I_ I ♦ i ORDINANCE NO. (1989 SERIES) AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO REPEALING SECTIONS 13.04. 100, 13.04.110, 13.08.040 THRU 13.08.080 AND ADDING NEW SECTIONS 13.04. 100 AND 13.08.040 AND AMENDING SECTION 16.44.090 AND ADDING SECTION 16..44.091 OF THE SAN LUIS OBISPO MUNICIPAL CODE RELATING TO METHODS OF EXTENDING WATER AND SEWER MAINS AS REQUIRED BY DEVELOPMENT AND PROVIDING A WAY TO REIMBURSE DEVELOPERS FOR CONSTRUCTION THAT BENEFITS OTHERS. BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1 . Sections 13.04.100 and 13.04.110 of the Son Luis Obispo Municipal Code are hereby repealed. SECTION 2. Section 13.04.100 is hereby added to the San Luis Obispo Municipal Code as follows: 13.04.100 Main Extensions Water mains .may be extended by developers or other interested parties ^, that would benefit by their extension providing the improvements are designed to current city standards and policy and are approved by the Director of Public Works and the Director of Utilities. The owner or developer who installs improvements which abut property other than that being developed or in a greater size or capacity than that. required for the development of the property under consideration, may be reimbursed as provided in Section 16.44.091 of this Municipal Code. SECTION 3. Sections 13.08.040, 13.08.050, 13.,08.060, 13.08.070, and 13.08.080 of the San Luis Obispo Municipal Code are hereby repealed. SECTION 4. Section 13.08.04 is hereby added to the San Luis Obispo Municipal Code as follows: 13.08.040 Main Extensions to customers other than subdivisions--Terms and Conditions Sewer mains may be extended by developers or other interested parties that would benefit by their extension at their cost providing the ��165 f ) Ordinance No. (1989 Series) Page Two. improvements are designed to current city standards and policy and are approved by the Director of Public Works and Director of Utilities. The owner or developer who installs improvements which abut property other .than that being developed or in a greater size or capacity than that required for the development of the. property under consideration, may be reimbursed as provided in Section 16.44.090 of this Municipal Code. SECTION 5. Section 16.44.090 of the San Luis Obispo Municipal Code is hereby amended to read as follows: 16.44.090 Oversized improvements :reimbursements As a condition of approval of a development project, it may be required that improvements (including streets) be of a supplemental size, capacity or number for the benefit of property not within the subdivision, and that the improvement be dedicated to the public. If such condition is imposed, provision for reimbursement to the subdivider may be allowed in accordance with Section 16.44.091 of this code. SECTION 6. Section 16.44.091 is hereby added to of the San Luis Obispo Municipal Code to read as follows: 16.44.091 Reimbursement A. Eligibility Whenever improvements are required to be installed adjacent to property other than that being developed or in greater size or capacity than that required for the development of the property under consideration,. the developer of the improvements may be eligible for reimbursement if the following conditions are satisfied: 1 . The city and Developer agree that the improvements significantly benefit and serve property that is not within the ^! subdivision or site development area; Ordinance No. (1989 Series) Page Three. 2. The city and Developer enter into a reimbursement agreement in C a form approved by the City Attorney; 3. The Developer submits evidence of the actual costs of the improvements described in the reimbursement agreement. (a) Evidence shall be provided in the form of reeeipted bills, cancelled checks, or contracts. (b) Evidence shall be submitted within 60 days of the city's acceptance of the improvements. Failure to timely submit evidence shall void the reimbursement agreement. B. Conditions for Reimbursement Payments Whenever property develops where: 1 . Improvements have been installed by the developer of an adjoining or nearby property; and 2. The improvements directly benefit the property currently being developed; and 3. An agreement for reimbursement has been entered into by the city and developer who installed these improvements; and 4. Not more than 15 years have elapsed since the execution of the reimbursement agreement; and 5. The original developer has submitted satisfactory documentation; the City will attempt to collect from the benefitting A party, prior .to the issuance of development permits, a prorated share of the documented cost of improvements described in the reimbursement agreement. Reimbursement will be in accordance with Sections 66485 et. seq. of the Subdivision Map Act as amended from time to time. Ordinance No. (1989 Series) Page Four. C. Payment of Reimbursement O When prorated shares of the cost of improvements are collected from the developers of new projects, the money collected shall be paid in accordance with the terms of the' agreement. The City shall not be required to reimburse more money.than it actually collects. Reimbursements shall be made only when the city collects money from the developers of new projects notwithstanding any provision of any law, this code or the reimbursement agreement. Failure or error by the City resulting in funds not being collected will not subject the City to any liability, obligation or debt being owed the original developer. SECTION 7. A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published at least five (5) days prior to its final passage in the Telegrorh-Tribune., a newspaper published and circulated in said City, and the some shall go O into effect at the expiration of thirty (30) days after its said final passage. A copy of the full text of this ordinance shall be on file in the office of the City Clerk on and after the date following introduction and passage to print and shall be available to any interested member of the public. SECTION 8. A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published at least , five (5) days prior to its final passage in the Telegram-Tribune, a newspaper published and circulated in said City, and the same shall go into effect at the expiration of thirty (30) days after its said final passage. A copy of the full text of this ordinance shall be on file in � s Ordinance No. (1989 Series) Page Five. Cithe office of the City Clerk on and after the date following introduction and. passage to print and shall be available to any interested member of the public. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at a meeting held on the day of 1989, on motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: MAYOR ATTEST: CITY CLERK M M M M N M APPROVED: ��• � 4m City A inistrative Officer Public Works Director City At ey V C ty Eoineer Fi a e DirectorUtilities Director ORDINANCE NO. (1989 Series) CHANGES IN PROCEDURES FOR EXTENDING WATER AND SEWER MAINS AND \ /1 RECONDIFING PROVISION FOR REIMBURSEMENT TO DEVELOPERS FOR PUBLIC WORKS IMPROVEMENTS CONSTRUCTED THAT BENEFIT OTHERS AND REPEAL OF PROVISIONS WHICH ALLOWED THE CITY TO DESIGN UTILITY EXTENTIONS FOR DEVELOPERS On the San Luis Obispo City Council voted to to introduce Ordinance No. (1989 Series), which rechapters provisions in the Code to allow a developer who installs public improvements such as a water or sewer main, in front of property other than his own to be reimbursed by that property owner if it is developed within 15 years. The ordinance also removes from the Code provisions which allowed the City to extend utility mains under agreements with private developers. This provision has not been used in many years. The Council must vote again to approve the ordinance before it can take effect. That action is tentatively scheduled for at a regular City Council meeting to begin at 7:00 P.M. in the Council Chambers of City Hall, 990 Palm Street. Copies of the complete ordinance are available in the City Clerk's Office in Room #1 of City Hall, 990 Palm Street. For more information, contact Wayne Peterson in the Engineering Division at 549-7200. Pamela Voges, City Clerk L E G I S L A T .I V E D R A F T Sections 13.04. 100 and 13.04. 110 are repealed in their entirety and replaced by new section 13.04. 100. [13.04. 100 Main extensions to new customers other than subdivisions. \A. Mains will be extended to serve new customers under the following terms,,and conditions. No main extension will be made by the city except on anIapproved dedicated street, alley or recorded easement. Prior\to construction of the main, every applicant for water service shall enter." into a written form agreement for such extension and shall deposit witti\ the utilities division an amount equal to ten ,percent of the estimated cost. of extension, including engineering and administration. The estimated cost shall be based on the actual size of "facilities required to meet-service demands from the extension[, except that eight-inch pipe shall be the minimum size considered for general use] . Should the utilities division desire to install facilities greater than are needed to meet the service demands, the cost of' the excess size of facilities shall be borne by the city. The utilities division shall then proceed with plans and specifications and sholl .solicit open bids for the proposed work. On the basis of the approved bid, plus engineering and administration costs, the utilities division shall inform the applicant as to the cost of the proposed\,extension. Upon"receipt by the city of an amount which, with the original deposit, is equal to the cost of the work, the utilities division shall proceed with the construction of the extension. In the event that the applicant or/applicants fail to deposit the required funds within sixty days after determination of the cost, the extension will not be made and no ,refund of the ten percent deposit will be made, except that where actual' costs are less than the amount of such deposit, the city may refund the unused" amount. B. Calculation of Water;Main extension., Charges. Immediately upon completion of the water extension, the utilities engineer/superintendent shall prorate the entire cost thereof against`all_lots or property that may ultimately be benefited by direct connection to the water extension in proportion to the frontage thereof, or if lots be irregular in shape, then in such manner as may„' in the opinion of the utilities engineer/ superintendent, provYde an equitable distribution of costs. In no case shall any applicant;pay an amount less than the prorated cost of the extension for the "length of his frontage as determined,.' in this section. The main extension charges as described in this section shall be in addition to the/specified service connection charges. C. Refunds. The original applicant or applicants shall up to ten years from .the date of signing any form agreement entered into prior to December 1 , 1968,. and up to fifteen years from such date for those entered into after December 1 , 1968, be entitled to a refund for each connection made to'the extension, based on the prorated cost as determined in this section for each lot or parcel. The utilities division may make Aixtensions to the facilities constructed under this regulation without obligation to applicant and refunds will not be made for services connected to the additional extensions. No interest shall be paid or accrue on such deposits for water main exte sion. Refunds of the deposit shall be made only if, as and when water\main extension charges are collected from other consumers requiring service\from this water main extension, and shall be subject to setoffs for any d punts then owed to city by the applicant or applicants. 13.04. 110 Main extensions to subdivisions. A. Where water main extensions are required for subdivisions, it will be the responsibility of the owner or subdivider to pay the cost for complete installation of all water facilities required within the subdivision and for extension of water transmission mains from the subdivision to the n rest existing main of adequate, capacity for the area to be served. Such tr nsmission mains shall be subject to all the requirements as set for in the subdivision regulations in this code and to any and all modificat\Ons and supplements to. the regulations. Upon official acceptance by the'City, the city shall assume full ownership, maintenance and control of "ch mains. B. Refunds to Subdividers. \ 1 . Upon completion of any Ovate� transmission main to a subdivision as outlined in subsection A of this Itron, the subdivider may submit to the utilities engineer/superintendent a%clertified statement showing the actual cost of such extension. If such ezten�4on is .larger than eight inches in diameter, the utilities engineer/superin endent shall adjust the actual cost to the equivalent of an eight-inch d meter main. He shall then prorate the cost for an eight=inch main ago nst all lots or parcels which in the future may be served/.by direct connection to the main. Any and all connections to the main sh.dll be subject to the\charges specified in Section 13.04.080. The utilities division may moke extensions to the subdivider, and refunds ill not be made for serv\Sces connected to the additional extensions. \ 2. The subdivider or owner of any subdivision whose tentative map was first approved orr or after December 1 , 1968, shall, for\a period of fifteen years from the date of official acceptance of the subdivision, be eligible for a refund on each connection made to the main extension, as provided herein. The refund period on subdivisions whose tentative map was first approved prior to December 1 , 1968, shall remain ten.. years from the date .of such final acceptance. \ 3_ •No interest shall be paid on or accrue on any funds subject\to such refund. Refunds shall be made only if, as and when main connection`._ charges are collected by the city and shall be subject to set-offs for any amounts then owed to city by the subdivider or owner.] 13.04.100 Main Extensions. Water mains may be extended by developers or other interested parties that would benefit by their extention providing the improvements are designed to current city standards and policy and are approved by the Director of Public Works and the Director of Utilities. �- Of-VO The owner or developer who installs improvements which abut property other than that being developed or in a greater size or capacity than that required for the development of the property under consideration, may be reimbursed as provided in Section 16.44.091 of this Municipal Code. Sections 13.08.040 thru 13..08.080 are repealed in their entirety and replaced by section 13.08.040 [13.08.040 Main extensions to customers other than subdivisions--Terms an \nditions. i A�\•Mains will be extended to serve new customers under the following terms grid conditions. No main extension will be made by the city/except on an approved dedicated street, alley or recorded easement. i B. Prior 'to construction of the main, every applicant for sewer service shall enter into a written form agreement for such extension and shall deposit with the engineering division an amount equal to ten percent of the estimated cost of the extension, including engineering and administration. The estimated cost shall be based on the actual size of facilities required t6,.meet the service demands from ,.that extension, except that eight-inch pipe .sholl be the minimum siie considered for general use. Should the 'sewer department desire to install facilities greater than are needed to''meet the service democrds, the cost of the excess size of facilities shall be borne by theicity. The engineering division shall then proceed with plans and specifications and shall solicit and open bids for the proposed work/I On the basis of the approved bid, plus engineering and administration cts, the engineering division shall inform the applicant as to the\costof the proposed extension. Upon Creceipt by the city of an amount whicq,;With the original deposit, is equal to the cost of the work, the cio.,, shall proceed with the construction of the extension. `, C. In the event that the applycant or applicants fail to deposit the required funds within sixty days/after determiation of the cost, the extension will not be made and"a refund of th7eten percent deposit will be made, except that where ac ual costs are less 'than the amount of such deposits for sewer main extensions. Refunds of the deposit shall be made only if, as and when sewer main extension charges or collected from other consumers requiring sery a from this sewer main extension and shall be subject to setoffs for ny amounts then due city by the applicants. 13.08.050 Main ext sions to customers other than subdivisions-- Calcul ion of charges. �\ A. Immediat/erly upon completion of the sewer extension, the city engineer shale/prorate the entire cost thereof against all lots o n� property that may ultimately be benefited by direct connection to th# sewer extension in proportion to the frontage thereof, or if the lots\be irregular in shape, then in such manner as may, in the opinion of the 1 ty r, engineeprovide an equitable distribution of costs. In no case shall any applicant pay an amount less than the prorated cost of the extension for the length of his frontage as determined above. The sewer main extension charges shall- be in addition to the specified service connection cbbrges. 13\08.060 Main extensions to customers other than subdivisions--Refund of charges for additional connections. A.\The original applicant shall, up to fifteen years from the date of !7) signing any form agreement, be entitled to a refund for each connection made to the extension, based on the prorated cost asdetermined by Section 13.08.050 for each lot or parcel.. The city may make extensions to the facilities Constructed under this regulation without obligation to applicant and\refunds will not be made for services connected to the additional extensions. B. No inter\t, shall be paid on or accrue on such deposits for sewer main extensions. kefunds of the deposit shall be made only ,if, as and when sewer main extension charges are collected from other consumers requiring service froiq this sewer main extension and shall be subject to setoffs for any amounts then due city by the applicants.. 13.08.070 Main extensions�ta subdividers--Cost .respgAsibility-- Requirements--Ownership. A. Where sewer main extensions are required for subdivisions, it will be the responsibility of the oll er or subdividep to pay the cost for complete installation of all sewer facilities .required within the subdivision and for extension to sewer transipissions mains from the subdivision to the nearest existing main of/'adequate capacity for the area to be served. Such transmission shot,.\be;sub,ject to all the requirements as set forth in Title 16 of this code 01#d to any and all modifications and supplements to said title. Upon official acceptance by the city, the city shall assume full ownership, mai to once and control of such mains. 13.08.080 Main extensions to .subd iders--1tefund of charges for J additional connections/ onnections \ A. Upon completion of any ewer transmission main to a subdivision as outlined in Section 13.08.0701the subdivider may submit to the city engineer a certified statemefit showing the actual cost of such extension. If the extension is larger than eight inches in diameter, the city engineer shall adjust th actual cost to the equivalent of an eight-inch diameter main. He shall/then prorate the cost for an eight-inch main against all lots or g parcels which in the future may be "rved by direct connection to the man � . Any and all connections to the ma rin shall be subject to the chorAes specified in Section 13.08.050. The\ city may make extensions to facilities constructed under this regulation without obligation, and refunds will not be made for services connected to the additional exte�sion. B. /or ivider or owner of any subdivision shall, for a peiriod of fifteenfrom the date of official acceptance of the subdivision, be eligiblrefund on each connection made to the main extension,\,os provides section. C/./No interest shall be paid on or accrue on any funds subject to such refglnd. Refunds shall be made only if, as and when sewer connection I\ ch,6rges are collected by the city and shall be subject to setoffs for any amounts then owed to city by the subdivider or owner.] ' � 13.08.040 Main Extensions. Sewer mains may be-extended by developers or other interested parties that would benefit bytheir extension at their cost providing the improvements are designed to current city standards and policy and are approved by the Director of Public Works and the Director-of Utilities. The owner or developer who installs improvements which abut property other than that being developed or in a greater size or capacity than that required for the development of the property under consideration, may be reimbursed as provided in Section 16.44.090 and of this Municipal Code. 16.44.090 Oversizing improvements reimbursements As a condition of approval of a development project [-tentattue—nGp-1 , it may be required that improvements (including streets) [ eihrli vi tint fnr +ha hcncfi+ of +hp ¢nhAi%iicinnlbe of a supplemental size, capacity or number for the benefit of property rot within the subdivision, and that the improvement be dedicated to the public. If such condition is imposed, provision for reimbursement to the subdivider shall be allowed in accordance with section 16.44.091_ of this code. in the manner {p^cvidect _h the—6wbdi.. e&e -MI A@i. a. p 4 e, shall:: e een$e#ned #n—che sdbd#a#sten Qa;r--+OCk being 16.44.091 Reimbursement A. Eligibility Whenever improvements are required to be installed adjacent to property other than that being developed or in greater size or capacity than-that required for the development of the property under consideration, the developer of the improvements may be eligible for reimbursement if the following conditions are. satisfied:: 1 . The city and Developer agree that the improvements significantly benefit and serve property that is not within the subdivision or site development area; 2. The city and Developer enter into a- reimbursement agreement in a form approved by the City Attorney; 3. The Developer submits evidence of the actual costs of the improvements described .in the reimbursement agreement. (a) Evidence shall be provided in the form of receipted bills, cancelled checks, or contracts. (b) Evidence shall be submitted within 60 days of the city's acceptance of the improvements. Failure to timely submit evidence shall void the reimbursement agreement. B. Conditions for Reimbursement Payments. Whenever property develops where: 1 . .Improvements have been installed. by the developer of an adjoining or nearby property; and 2. The improvemements directly benefit--the property currently being developed; and 3. An agreement for reimbursement has been entered into by_ the city_ and developer who installed these improvements; and 4. Not more than 15 years have elapsed since the execution of the reimbursement agreement; and 5. The original developer has submitted satisfactory documentation; the City will attempt to collect from the benefitting party, prior to the .issuance of development permits, a prorated share of the documented cost of improvements described in the reimbursement agreement Reimbursement will be in accordance with sections 66485 et seq of the Subdivision Map Act as amended from time to time. C. Payment of Reimbursement When prorated shares of the cost of improvements are collected from the developers of new projects the money collected shall be paid in accordance with the terms of the agreement. The City shall not be required to reimburse more money than it is able to collect. Reimbursements shall be made only when the city collects money from the \� developers of new projects notwithstanding any provision of any law, this code or the reimbursement agreement. Failure or error by the City resulting in funds not being collected will not subject the City to any liability, obligation or debt .being owed the original developer.