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November 18, 2002 <br /> <br />Subject <br />Ordinance amending Section 18.242 of the City Code relating to undergrounding of utilities <br /> <br />Recommendation <br />Approve the recommended changes to Section 18.242 of the City Code, relating to <br />undergrounding of overhead utilities and approve the Resolution establishing the fee for <br />undergrounding. <br /> <br />Background <br />In 1998, the City Council adopted a new set of regulations, Article XlV - Local Development <br />Standards, as part of Chapter 18 - "Local Improvement and Planning." The Local <br />Development Standards required irnprovements in the public right-of-way whenever a new <br />building was built, or "substantial" remodeling took place. <br /> <br />The type of improvements that have to be brought up to current standards include: <br /> <br /> · Water lines <br /> · Sewer lines <br /> · Curb, gutter, and sidewalk <br /> · Street paving <br /> · Street lights <br /> · Street trees <br /> · Undergrounding of overhead utilities <br /> <br />Since the Ordinance was adopted in 1998, it has helped to clarify development requirements <br />and provide needed improvements to the public right-of-way. The one area that has, and still <br />is causing problems, is the undergrounding of utilities. <br /> <br /> As it turns out, undergrounding only effects one side of the street; therefore, with our current <br /> ordinance, development on one side of the street pays all of the cost. Undergrounding can <br /> be the single highest off-site cost for a small project being nearly as expensive as the <br /> building itself, and short "pieces" of undergrounding do not substantially improve the <br /> appearance of the street frontage. <br /> <br /> This section of the Code was amended in 2001, with the hope of eliminating some of the <br /> inequities, which it did, but the requirements can still be excessively expensive for some <br /> projects particularly smaller "new" buildings. A recent example is a small retail building that <br /> would have to underground over 200 feet of overhead wires. The estimate of cost for <br /> undergrounding adds $40 per square foot to the building cost. Another issue that has <br /> <br /> <br />