§ 35-336. "UCD" Utility Conversion Districts.

STATEMENT OF PURPOSE

Within the city there are numerous corridors in which the transmission of electricity, telecommunications, cable television and other technologies (collectively referred to as utilities or facilities within this division) has been facilitated through the use of aboveground poles in public rights-of-way and easements.

Under grounding or relocation of these facilities can provide a safer environment for the public. Under grounding, relocation or redesign of these facilities can enhance the surrounding development by improving the visual appearance and appeal of the city's visitor attractions, scenic views and urban corridors, cultural and historical resources, public gathering places and other major public facilities. The under grounding, relocation or redesign of these facilities can also promote economic development and revitalization in surrounding areas, increase the value of commercial properties and residential neighborhoods, and improve the quality of life for all San Antonians. The establishment of utility conversion districts requires mechanisms to identify and designate the specific corridors and areas to be modified, to determine the nature of the improvements to be required in each such corridor or area, to require the various utility companies to implement these projects as parts of public works or civic improvement projects directed by city council and to require property owners and utility customers to modify their property as necessary to receive utility services from underground, relocated or redesigned distribution systems.

(a)

Applicability. To be established as a utility conversion district, a corridor or area must meet either one (1) of the following criteria:

• The proposed utility conversion district includes the area of another public works or civic improvement project which is already planned and for which reasonable assurance of funding has been secured. If the existing public works or civic improvement project does not already require some relocation of existing aboveground utilities in the area, then it must be of such unique and city wide significance, as determined by city council, to justify consideration to achieve the purposes of this subdivision. This related project does not need to be sponsored or financed by the city, but it must be the project of a governmental entity; or

• A utility conversion district is proposed by a petition of the property owners in the area. The petition must be signed by the owners of at least two-thirds ( 2/3 ) of the total number of lots or separate tracts of land in the area of the proposed district, and the property of these owners must encompass at least two-thirds ( 2/3 ) of the total land area of the proposed district, excluding the area of streets, alleys and other public rights-of-way and of any other land owned by the city. Petitioners shall use the city petition form for utility conversion districts to ensure that the project proposed is technically feasible and worthwhile and that all of the affected property owners are considered in the calculation of the signature requirement.

Other provisions of this chapter notwithstanding, the provisions of this section shall apply to property belonging to or used by the city or to property used to provide city owned utilities.

(b)

"UCD" Ordinances.

(1)

Ordinances Establishing Utility Conversion Districts. This division authorizes the establishment of utility conversion districts and includes general provisions governing all such districts. However, a separate ordinance is required to establish each such district. The ordinance establishing a particular utility conversion district shall:

• Describe the area of the district;

• Specify the requirements for improvement of the utilities in each part of the district; and

• Establish a deadline by which existing utility customers within the district must complete the modification of their property as necessary to continue to receive utility services from the new utility distribution systems.

(2)

Requirements of Utility Conversion Districts. The requirements of a particular district may include any combination of the following:

• The conversion of existing overhead utility facilities to underground operation;

• The relocation of existing overhead utility lines from one specified route to another;

• Specified improvements in the design of existing and/or new overhead utilities.

• A requirement that all new utility lines in the district or in a specified area of the district be installed underground or meet an improved design standard without requiring modification of existing utilities in the district or that area of the district.

The requirements of a particular district may apply to transmission and trunk lines, to distribution lines, or both, as specified in the ordinance creating the district. The ordinance creating a particular district shall specify the improvements which are to be required in the district, and it may apply any combination of the preceding requirements to any particular specified areas or corridors within the district. In addition, the ordinance may require that whenever utility lines are extended from within the district or a specified area of the district to serve property which is outside but adjacent to the district or that area of the district, the portion of the extensions within the district shall conform to the district requirements with respect to underground installation, aboveground route or design standard as appropriate.

(3)

Utility Conversion Districts are Overlay Districts. Utility conversion districts are established as overlays to the regular base zoning districts. The zoning district designation for each utility conversion district shall consist of the base zone symbol with the overlay district symbol "UCD" as a suffix, followed by a sequential number for the order in which these districts are created.

(c)

UCD.

(1)

Compilation Process. At the beginning of each calendar year, city staff shall begin compiling a list of the proposals for utility conversion districts which have been received during the previous year and which meet the criteria of the previous paragraph. Upon completion of the compilation process, city staff shall make the list available to the public. This list shall include the staff's preliminary analysis of the potential benefits, technical feasibility, and costs of each proposed district which is eligible for consideration. For each proposed and eligible district, the analysis shall also include consideration of any alternatives to the initially proposed requirements which the staff believes are feasible and would largely achieve the intended objectives of the district.

(2)

City Council Resolution. Each year, following the city's receipt of notice from CPS Energy of the amount of funds available for utility conversion projects in the city, the city council shall hold a public hearing to consider the establishment of utility conversion districts. Following the hearing, the council shall adopt a resolution stating its intention to establish one (1) or more utility conversion districts, up to the limit of the funds available. The number of districts and their size and scope shall be limited to the funds available. For each such district which the council intends to establish, the resolution shall describe the area or boundaries of the district, the requirements or combinations of requirements which are proposed in each part of the district, and the deadline which is proposed for compliance by the utility customers.

(3)

Notification. Following the adoption by city council of a resolution of intent to establish a utility conversion district, the city shall notify each property owner, inside and within two hundred (200) feet of the boundaries of the proposed district, of this action. The city will also work with the utilities involved to identify and notify the utility customers in the area who are not property owners. The notice shall include a summary explanation of the purposes, procedures, requirements and possible impacts on property owners and utility customers of the establishment of a utility conversion district. The notice may also include the time and place of an informal public meeting, in a location convenient to the area, at which city staff will explain the process of implementing utility conversion districts, answer questions, and attempt to gather information on the degree of community support for the proposal.

(4)

Decision.

• Following the notice of the council's intent to establish a utility conversion district and the neighborhood public meeting, the zoning commission shall hold a public hearing and make recommendations to city council. Notice of the hearing shall be provided in the same manner as for a change in zoning. The planning commission will also consider the substance of the proposed utility conversion district and make a recommendation to the city council.

• Following receipt of the recommendations of the zoning commission and the planning commission, the city council shall hold a second public hearing before determining whether to proceed with the establishment of the district. If the council determines to proceed, it shall adopt an ordinance establishing the district as an amendment to subsection 35-335(i) of this chapter. The ordinance adopting the amendment to subsection 35-335(i) shall also declare that implementation of the utility improvements is required for the public health, safety and general welfare, and that the project constitutes a public works or civic improvement project of the city within the meaning of the utility franchise and municipal fee agreements.

• If the council determines not to proceed with the establishment of the district, it shall adopt a resolution to abandon the proposal. The council may then adopt a resolution of intent to establish another utility conversion district in place of the district which is abandoned. The adoption of a new resolution of intent shall then initiate the processes of notice, neighborhood meeting, and recommendations by the zoning commission as set out in the previous paragraphs of this section. However, the council may not establish a new district at this stage unless the proposed district was among those considered at the previous annual public hearing.

• Within thirty (30) days after the establishment of a utility conversion district, the city shall notify each affected utility company and property owner listed on the current Bexar County Appraisal District tax rolls. The notice to the utilities shall constitute their direction to proceed with the project as a public works or civic improvement project of the city. Except for districts or areas within districts which only require new utility distribution lines to be extended underground, the notice shall notify property owners that the utility poles, overhead utility lines and associated facilities in the district are to be removed and converted to underground operation, or relocated or redesigned as appropriate to the location of their property within the district, and that if the property owners, the tenants or occupants of their property desire to continue to receive the utility services they must make all of the necessary changes on the premises so as to receive service from the new utility distribution systems. The notice shall also notify the property owners of the anticipated schedule for the completion of the district improvements and the required deadline for modification of the property. The notice shall also inform the property owners of the technical and other assistance which is available to them in meeting the district requirements, and contain the name, office address and telephone number of a city staff person who will be available to answer questions.

(d)

Implementation of District Improvements.

(1)

Conversion of Overhead to Underground Operations. If the ordinance establishing a particular utility conversion district requires the conversion of overhead utilities to underground operation, then every public utility which has poles, overhead lines and associated aboveground facilities in the affected area of the district shall remove it poles, overhead lines and associated facilities in the area as required by the ordinance establishing the district, subject to other applicable city ordinances and franchise agreements. Thereafter, no new utility poles, overhead lines or associated facilities shall be permitted in the affected district area.

(2)

Rerouting of Overhead Utility Lines. If the ordinance establishing a particular utility conversion district requires the relocation of overhead utilities from one route to another, then every public utility which has poles, overhead lines and associated aboveground facilities along the route which is to be vacated shall remove its poles, overhead lines and associated facilities from that route, and shall install such new facilities as it considers necessary along the alternate route, as required by the ordinance establishing the district. Thereafter, no new utility poles, overhead lines or associated facilities shall be permitted in the district along the route which is vacated. The ordinance establishing the district may also require that utility lines shall not be extended overhead from elsewhere within the district or within a specified area of the district to serve adjacent property along that route or along a specified part of that route. Prior to placement, the location of all new poles, anchors and guy lines along any new route shall be approved by the director of public works.

(3)

Replacement of Facilities. If the ordinance establishing a particular utility conversion district requires the replacement of existing poles, overhead lines and associated aboveground facilities with those of an improved design, then every public utility which has poles, overhead lines and associated facilities in the affected area of the district shall remove those which do not conform to the improved design standard and shall replace them with poles, lines and associated facilities which meet the improved standard, as required by the ordinance establishing the district. Thereafter, no new utility poles, overhead lines or associated facilities shall be permitted in the affected district areas which do not meet the improved design standard. Prior to placement, the location, route and design of the new poles (including anchors and guy lines), overhead lines and associated facilities shall be approved by the director of public works.

(4)

Regulations Applicable Only to New Development. If a requirement of the ordinance establishing a particular utility conversion district applies only to new development, then the existing utility poles, overhead lines and associated facilities in the affected district area may continue in use and may be replaced as necessary. However, no additional poles shall be installed and no additional lines shall be extended on existing poles in the affected district area except in conformance with the district requirements.

(e)

Responsibilities of Property Owners and Customers.

(1)

Application. This section applies whenever a utility conversion district requires:

• The conversion of overhead utilities to underground operation;

• The relocation of overhead utilities from one route to another; or

• The replacement of existing poles, overhead lines and associated aboveground facilities with those of an improved design.

(2)

New Easements. Any new easement acquired by the city shall be reasonable and necessary. If an additional easement or easements are required, the utility may request the property owner to dedicate the easement with no compensation to the property owner. Election by the property owner to not dedicate the easement without receipt of compensation, will in no way impair the property owner's service contract with the utility. In such event, the city may:

• Withdraw or modify the proposed designation of the project as a utility conversion district; or

• Procure the new easement in conformity with existing procedures and statutes governing compensation for nonvoluntary easements.

The cost associated with acquisition of easements for utility conversion district shall not be borne by the property owner conveying the easement. Acquisition costs for gas and/or electric easements shall be paid from the CPS Energy service conversion fund. Acquisition costs for other easements shall be paid by the respective utilities.

(f)

Modification to Receive Utility Service.

(1)

Financial Responsibility. Property owners and customers shall not be required to pay any costs associated with conversion of existing utility service to underground utilities. Modifications to the owner/customer's property necessary to receive service from the new utility distribution system shall be paid from the CPS Energy conversion fund. However, if preexisting electrical code violations are observed during installation or reconnection of service from the new utility distribution system the property owner/customer shall be responsible for the correction of such violations. All correction of violations shall be completed within ninety (90) days after written customer and owner notification that the new distribution system is available. For the purposes of this section, "preexisting electrical code violation" shall mean the violation of the electrical code in effect at the time the property owner/customer's improvements were constructed. Only life safety corrections will be required. Electrical installations that comply with prior codes and are in good repair may remain. All conversion costs for other utilities shall be borne by the respective utilities.

(2)

Unfunded Conversion Costs. In the event conversion costs that do not qualify for payment through the CPS Energy conversion fund are not borne by the customers, municipal utilities, other utilities or other interests, the project will not be designated as a utility conversion district unless the affected property owners voluntarily choose to pay for conversion costs of their property to receive service from the new distribution system.

(3)

Utility Drops. All new construction and new structural alterations which involve the utility drop of an existing building or structure with a utility conversion district shall be designed to receive utility service from the utility distribution system required in the district.

(g)

Disconnection of Service. In the event that a property owner or utility customer does not comply with the requirements of a utility conversion district within ninety (90) days after receiving notice that service is available from the new utility distribution system, the utility provider(s) shall notify the director of public works of the owner/customer's noncompliance. The director of public works shall give the noncompliant party an opportunity to be heard. If, after this opportunity to be heard, the director of public works determines that the service should be disconnected, he/she shall direct the utility providers to do so. The purpose of this provision is to provide for flexibility when dealing with exceptional circumstances and not to frustrate the intent expressed in this division to convert or reroute utilities.

Upon notice to disconnect service, and subject to applicable federal and state rules and regulations regarding service termination, the utility providers shall disconnect and remove any and all poles, overhead lines and associated facilities supplying utility service to the subject property. The utility providers shall not thereafter be required to provide service to such premises until the necessary modifications to receive service from the new distribution system are made.

(h)

Exceptions. The provisions of this division shall not apply to the following types of facilities:

• Temporary utility services during construction.

• Overhead lines attached to the exterior surface of a building by means of a bracket or other fixture and extending from one location on the building to another or to an adjacent building without crossing the front line of the building or the building setbacks.

In the case of a utility conversion district which requires the conversion of overhead utilities to underground operation or the installation of new utilities underground, the director of public works shall, at the property owner's request, authorize the use of overhead service drops from riser poles located on private property when the riser pole is located behind the front line of a building and behind the adjacent street side line of a building on a corner lot, or the riser pole is otherwise effectively shielded from public view from any street abutting the property.

(i)

Emergencies and Unusual Circumstances. In cases of emergency or unusual circumstances of a temporary nature, the director of public works may authorize any person to erect, maintain and use utility poles, overhead utility lines and associated facilities which do not meet the requirements of a utility conversion district for the duration of the emergency or unusual circumstances, not to exceed one (1) year.

(j)

Districts Established. The utility conversion district administrative procedures attached to Ordinance No. 85764 are adopted in order to provide city staff with general guidance regarding the implementation process and project selection criteria. The administrative procedures are available for public inspection in the office of the city clerk.

The city council urges CPS Energy to limit its annual contributions to the utility conversion fund to the current one (1) percent of the electric revenue of the CPS Energy electric system billed during the previous fiscal year, and to refrain from implementing any further rate increases to subsidize this fund.

(Ord. No. 98697 § 6) (Ord. No. 101816, § 2, 12-15-05)