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HomeMy WebLinkAboutPlanning Commission Staff ReportCITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 PLANNING COMMISSION STAFF REPORT Title: Case File No.: Location: Assessor's Parcel No.: Staff report by: Item no. 6 January 10, 2011 REQUEST FOR MODIFICATION OF A PREVIOUSLY APPROVED TENTATIVE SUBDIVISION MAP TO DELETE A CONDITION OF APPROVAL REQUIRING UTILITIES TO BE PLACED UNDERGROUND AT 1205-1243 FIG COURT. 2010-36 M (S-2006-12) North side of Fig Court 551-490-19 Martin Reeder — Assistant Planner Applicant /Property owner: Robert Gulotta Combined General Plan/ Zoning designation: Residential Single -Family Extendable (RS-3-PD) Parcel size: Adjacent land use/zoning: North: East: South: West: Environmental review: 1.41 acres Duplexes on Scott Drive / RS-3-PD Single-family residences / RS-3-PD Pacific View Estates across Fig Court / RS-3-PD Park Villas apartment complex / RM-2-PD Not a project under CEQA BACKGROUND Site characteristics The project site is a 1.41-acre property in the RS-3-PD zone with over 700 feet of frontage on Fig Court. The lot slopes slightly from south to north and is developed with ten identical duplexes. There are five utility poles located along the frontage. The westerly three poles service solely the subject property, while the easterly two poles service properties across Fig Court in addition to the duplexes. History A Tentative Subdivision Map was approved in 2007 (S-2006-12) for a ten -lot subdivision intended to create a separate lot for each duplex. A condition of approval requiring the undergrounding of utilities, consistent with Section 13.08.020 (A) of the Municipal Code, was included (Condition No. 21). Chapter 13.08 — Underground Utility Installations Procedure — is attached for your reference. As part of the original application, the applicant requested a waiver of the undergrounding requirement. The request was denied, although the Council allowed for poles servicing other properties to remain above ground. However, utility service from the latter poles to the subject residences was to be place underground. This resulted in three utility poles needing to be removed. Since the project was approved, formerly vacant land across Fig Court to the south has been developed with the Pacific View Estates, a 49-unit single-family development now entering its final phase of construction. As part of the utility design for this project, all utilities on the Fig Court side of this project were placed underground to the westerly two poles in front of the subject duplexes. As part of this process, a shorter `sub -pole' was placed adjacent to the westernmost utility pole and a transformer placed upon the pole. As part of the approved subdivision, the applicant agreed to upgrade the properties. Upgrades included new kitchen and bathroom fixtures and cabinets, fencing, a brow ditch behind the properties for drainage, individual appliances for each unit (as opposed to the original shared laundry facility), and general repairs as needed. Half of the units have since been completely rehabilitated, with the other ten units, the fencing, brow ditch and undergrounding yet to be undertaken. All of the general repairs that were called out in the physical elements report submitted with the original application have been completed. Proposal The applicant requests to modify the Conditions of Approval for the approved Tentative Subdivision Map Resolution (No. 2007-98) to waive the requirement to underground the existing utilities and remove the power poles. The specific condition states: 21.AII utility distribution facilities within the boundaries of the subdivision, and within the half street abutting the new subdivision, shall be placed underground, with the exception of the poles to remain that service properties outside of the subdivision; the utility service from said poles to properties within the subdivision is to be placed underground. No other changes to the approved Tentative Subdivision Map are requested or proposed. Analysis The applicant has submitted a letter (attachment No. 6) requesting the waiver of the condition to underground utilities. In this letter, the applicant states that the total cost of upgrades, including the undergrounding would be $996,788. Without the undergrounding the cost would be $699,536 — a difference of $297,252. The appraised value of the existing rental property (one lot with ten duplexes upon it), is $2,100,000. As ten individual properties with all improvements completed, including undergrounding, the appraised value would be $1,950,000 — a difference of $150,000 to the detriment of the property owner. Presumably, the value would be lesser still without the utilities placed underground. Even with the reduction in value of the property when split, the applicant is still willing to undergo the subdivision process in order to have the ability to sell the duplexes individually. However, without the waiver the applicant has stated that they would not be able to continue with the process. In this case, the units would remain as rentals and the ten units not already rehabbed would not receive the additional upgrades. Affordability The applicant has stated that granting of a waiver of the undergrounding requirement will allow them to complete all of the remaining upgrades to the property and record the final map. Additionally, the properties could then be offered at an affordable price, consistent with the City's affordable housing policies. The availability of the individual duplexes for sale will also provide for additional home -ownership opportunities for National City residents. Based on data provided by the U.S. Department of Housing and Urban Development (HUD), affordable housing for a low-income family (household earning up to 80 percent of San Diego area median income) (AMI), would be a home priced under $225,000. Based on this information, the sale price of $195,000 would be considered affordable. Furthermore, half of the duplex would be rented out, providing for additional revenue for the potential owner. With the exception of the deleted Condition of Approval as discussed above, all original Conditions of Approval are still in effect. The original Resolution is included as an attachment. The current approval expires on April 16, 2012 with up to three additional years available if approved by City Council. Summary The completed subdivision of the subject property will result in a quality project that meets several of the City's housing policies and goals. In addition, the potential affordability of the duplexes will help to provide additional home -ownership opportunities as well as expanded rental opportunities for both owners of the units and their prospective renters. Furthermore, due to only three out of the five utility poles needing to be removed, whatever aesthetic value may be achieved by this partial utility undergrounding would be compromised by the utility poles that remain; this would result in a disjointed appearance to the street. RECOMMENDATION Recommend approval of 2010-36 M based on attached findings; or ATTACHMENTS 1. Recommended Findings for Approval 2. Recommended Conditions of Approval 3. City Council Resolution No. 2007-98 4. Location Map 5. National City Municipal Code Chapter 13.08 — Underground Utility Installations Procedure 6. Request for waiver of undergrounding of utilities requirement MARTIN REEDER Assistant Planner Development Services Director RECOMMENDED FINDINGS FOR APPROVAL OF THE TENTATIVE SUBDIVISION MAP MODIFICATION 1. That granting a waiver of the underground utility requirement will allow for the properties to be offered at an affordable price, consistent with the City's affordable housing policies. 2. That the resultant affordability of the homes due to granting of the waiver will provide additional home -ownership opportunities for National City residents, consistent with City policy. 3. That whatever aesthetic value that may be achieved by partial utility undergrounding would be compromised by utility poles which are to remain, thus creating a fragmented appearance of the areas infrastructure. 4. That granting of the waiver will allow for additional upgrades to the properties that would be not be made with the added expense of undergrounding utilities, thus improving the quality of housing stock in the area consistent with City policy. RECOMMENDED CONDITIONS OF APPROVAL 1. This Tentative Subdivision Map modification authorizes the deletion of Condition number 21 contained in City Council Resolution 2007-98. Unless specifically modified by this resolution, all previous Conditions of Approval as stated in City Council Resolution 2007-98 are still in effect. Except as required by Conditions of Approval, all plans submitted for permits associated with this project shall conform with Exhibits A, 2nd Revision, Case File No. S-2006-12, dated 12/6/2006. 2. Before this Tentative Subdivision Map modification shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Tentative Subdivision Map modification. The applicant shall also submit evidence to the satisfaction of the Development Services Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Tentative Subdivision Map modification are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Development Services Director prior to recordation. 3. Approval of the Tentative Subdivision Map approved for this property expires on April 16, 2012 at 5:00 p.m. unless prior to that date a request for a time extension not exceeding three (3) years has been filed as provided by National City Municipal Code §17.04.070. RESOLUTION NO. 2007 — 98 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A TENTATIVE SUBDIVISION MAP TO DIVIDE A 1.41-ACRE LOT INTO TEN AT THE SITE OF TEN EXISTING DUPLEXES AT 1205-1243 FIG COURT, AND PARTIALLY GRANTING THE REQUEST TO WAIVE THE UTILITY UNDERGROUNDING REQUIREMENT APPLICANT: ROBERT GULOTTA CASE FILE NO. S-2006-12 WHEREAS, application was made for approval of a Tentative Subdivision Map to Divide a 1.41-Acre Lot into Ten at the Site of Ten Existing Duplexes at 1205-1243 Fig Court, and to Waive the Utility Undergrounding Requirement on property generally described as: Lot 34 of Scott Terrace, in the City of National City, County of San Diego, State of California, according to Map thereof No. 3153, filed in the Office of the County Recorder of San Diego County, November 4, 1954. WHEREAS, the Planning Commission considered said application at a duly advertised public hearing held on April 2, 2007, at which time the Planning Commission considered oral and documentary evidence, and recommended approval of the project, and denial of the request to waive the utility undergrounding requirement; and WHEREAS, the City Council considered said applications at a public hearing held on May 1, 2007, at which time oral and documentary evidence was presented; and WHEREAS, at said public hearing the City Council considered the staff report prepared for Case File No. S-2006-12, which is maintained by the City, and incorporated herein by reference; along with evidence and testimony at said hearing; and WHEREAS, this action is taken pursuant to all applicable procedures required by State and City law; and WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety and general welfare. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the Tentative Subdivision Map to Divide A 1.41-Acre Lot Into Ten at the Site of Ten Existing Duplexes at 1205-1243 Fig Court, and grants in part the Request to Waive the Utility Undergrounding Requirement, based on the following findings: TENTATIVE SUBDIVISION MAP 1. The proposed map is consistent with the National City General Plan and applicable specific plans, since the proposal will result in increased property valuation while increasing the likelihood of adequate property conservation, and since there are no applicable specific plans. 2. The site is physically suitable for the proposed type of development, since no development is proposed; only a change of ownership of existing development will take place. Resolution No. 2007 — 98 May 15, 2007 Page 2 3. The site is physically suitable for the proposed density of development, since no development is proposed; only a change of ownership of existing development will take place. 4. The design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat, since no development is proposed; only a change of ownership of existing development will take place. 5. The design of the subdivision and the proposed/required improvements are not likely to cause serious public health problems, since all necessary public services will continue to be provided. 6. The design of the subdivision and the proposed/required improvements will not conflict with easements, acquired by the public at large, for access through or use of the property within the proposed subdivision, since no such easements are located on the site. 7. The discharge of sewerage waste from the subdivision into the City of National City sewer system will not result in violation of existing requirements prescribed by the California Regional Quality Control Board pursuant to Division 7 (commencing with Section 13000) of the Water Code, as specified by Government Code Section 66474.6. PARTIAL WAIVER OF UTILITY UNDERGROUNDING REQUIREMENT 1. To require undergrounding of the poles servicing properties outside of the subdivision would be economically detrimental to the owners, and would pose an economic hardship on potential new owners. BE IT FURTHER RESOLVED that based on the findings hereinbefore stated, said Tentative Subdivision Map to Divide a 1.41-Acre Lot into Ten at the Site of Ten Existing Duplexes at 1205-1243 Fig Court, is hereby approved subject to the following conditions: 1. This Tentative Subdivision Map authorizes the division of one parcel into ten individual lots, each containing an existing duplex. Except as required by conditions of approval, all plans submitted for permits associated with the project shall conform with Exhibits A, 2nd Revision, Case File No. S-2006-12, dated December 6, 2006. 2. A Landscape and automatic Irrigation Plan shall be submitted for the entire property. The plan shall indicate plant species and sizes to replace or fill in areas where there is dead and decaying plant material or missing landscaping (i.e., the rear slope, areas adjacent to the sides of each building, existing paved areas not part of the required two parking spaces per unit and front yard landscaped areas including the embankment in front of 1205-1207 Fig Court). The plan shall also show the relocation of the fencing to include the entire rear property area not currently fenced. The Irrigation Plan shall indicate an automatic irrigation system for each unit, location of irrigation heads and lines, and identify additional irrigation provided in areas that are not watered or where sprinkler heads are damaged. 3. All trash receptacles shall be stored behind the fence and away from public view. Resolution No. 2007 — 98 May 15, 2007 Page 3 4. Prior to recordation of the final map, the applicant shall submit a Lien Contract and Agreement not to Convey subject to review and approval by the City Attorney. The Lien Contract and Agreement shall limit the ability to convey each lot until the interior and exterior improvements have been completed for that lot. 5. All recommended immediate, short-term and intermediate repairs as stated in Physical Elements Report pages 5 and 6 shall be completed in addition to all interior and exterior repairs and/or improvements, as mentioned in the letter from Lloyd Holt, RCE dated December 4, 2006, prior to release of each unit, except that all units shall receive improvements as stated rather than as needed. Construction plans submitted for approval shall reflect the addition of a washer/dryer unit as shown in the application. All improvements shall be subject to building department permits, as applicable. 6. Prior to Final Map approval or the conveyance of each unit, the applicant shall submit a completed Termite Inspection Report that indicates the remediation for each unit is complete. 7. Prior to Final Map approval, the applicant shall submit a phasing plan showing the phasing of improvements that affect all of the units and how the improvements will be completed for each unit. The approved phasing plan shall be submitted with the building permits. 8. The developer shall provide a declaration of Covenants, Conditions and Restrictions, running with the land, ensuring the maintenance and upkeep of landscape and irrigation, and continued property management, prior to approval of the final map. The CC&Rs shall include a clause prohibiting the storage of abandoned or inoperable vehicles upon the properties. Said CC&Rs shall be subject to approval as to content and form by the City Attorney. 9. The project is to be designed, developed and constructed in compliance with the California Fire Code (CFC) 2001 edition and the most current National Fire Protection Association (NFPA) Standards as adopted by the City of National City. 10. Plans must comply with the 2001 editions of the California Building Code, the California Mechanical Code, the California Plumbing Code, the Califomia Electrical Code, and Califomia Title 24 energy and handicapped regulations. 11. The Homeowners Association and/or property owner shall be required to maintain, repair, or reconstruct of all irrigation and landscaping improvements installed within the public right-of-way. Sprinkler heads shall be adjusted so as to prevent overspray upon the public sidewalk or the street. The proposed sprinkler heads shall be installed behind the sidewalk, and the irrigation mainline upon private property only, as required by the City. The Homeowners Association and/or the property owner or, its successors or assigns, shall remove and relocate all irrigation items from the public right-of-way at no cost to the City, and within a reasonable time frame upon a written notification by the City Engineer. Resolution No. 2007 — 98 May 15, 2007 Page 4 12. The priority Project Applicability checklist for the Standard Urban Stormwater Mitigation Plan (SUSMP) is required to be completed and submitted to the Engineering Department. The checklist will be required when a project site is submitted for review of the City Departments. The checklist is available at the Engineering Department. If it is determined that the project is subject to the "Priority Project Permanent Storm Water BMP Requirements" and the City of National City Storm Water Best Management Practices of the Jurisdictional Urban Runoff Management Program (JURMP) an approved SUSMP will be required prior to issuance of an applicable engineering permit. The SUSMP shall be prepared by a Registered Civil Engineer. 13. The deteriorated portions of the existing street improvements (75' of sidewalk and 100' driveway) property frontages shall be removed and replaced. 14. A permit shall be obtained from the Engineering Department for all improvement work within the public right-of-way. 15. A title report shall be submitted to the Engineering Department, after the Planning Commission approval, for review of all existing easements and the ownership at the property. 16. A cost estimate for all of the proposed grading, drainage, street improvements, landscaping and retaining wall work shall be submitted with the plans. A performance bond equal to the approved cost estimate shall be posted. Three percent (3%) of the estimated cost shall also be deposited with the City as an initial cost for plan checking and inspection services at the time the plans are submitted. The deposit is subject to adjustment according to actual worked hours and consultant services. 17. The final map shall meet all of the requirements of the Subdivision Map Act, and the City of National City Municipal Codes, including certification, acknowledgement, complete boundary information and monumentation. 18. The developer shall submit to the Fire Department a letter from Sweetwater Authority stating existing fire flow. If determined by the Fire Department that additional improvements are needed, the developer shall enter into an agreement for the water improvements with the Sweetwater Authority prior to obtaining the final map approval. 19. Separate water and sewer laterals shall be provided to each lot/parcel. 20. The developer shall bond for the monumentation, the pubic improvements and the on - site grading, drainage, landscaping, and other improvements through an agreement with the City prior to the approval of the final map. 21. All utility distribution facilities within the boundaries of the subdivision, and within the half street abutting the new subdivision, shall be placed underground, with the exception of the poles to remain that service properties outside of the subdivision; the utility service from said poles to properties within the subdivision is to be placed underground. 22.. The final map shall be recorded prior to issuance of any building permit. Resolution No. 2007 — 98 May 15, 2007 Page 5 23. All new property line survey monuments shall be set on private property, unless otherwise approved. 24. The final map shall use the California Coordinate System for its "Basis of Bearings" and express all measured and calculated bearings in terms of the system. The angle of grid divergence from a true meridian and the north point shall appear on the map. Two measured ties from the boundary of the property to existing horizontal control stations shall be shown. 25. The Police Department recommends that final approval of the development project should include provisions for the project to comply with crime free multi -housing criteria and crime prevention through environmental design standards. 26. Television cable companies shall be notified a minimum of 48 hours prior to filling of cable trenches. 27. The property owner shall submit a letter to the Sweetwater Authority stating fire flow requirements. The owner shall enter into an agreement with the Authority for any water facility improvements required for the proposed project. 28. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the Califomia Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning Department. At this time, the filing fee is $50 for a Notice of Exemption or Notice of Determination, $1,800 for a Negative Declaration or Mitigated Negative Declaration, and $2,500 for an Environmental Impact Report. 29. Before this Tentative Subdivision Map shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Tentative Subdivision Map. The applicant shall also submit evidence to the satisfaction of the Planning Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Tentative Subdivision Map are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney, and signed by the Planning Director prior to recordation. 30. Approval of the tentative map expires two (2) years after adoption of the resolution of approval at 5:00 p.m., unless prior to that date a request for a time extension not exceeding three (3) years has been filed as provided by National City Municipal Code Section 17.04.070. BE IT FURTHER RESOLVED that copies of this Resolution shall be transmitted forthwith to the applicant. Resolution No. 2007 — 98 May 15, 2007 Page 6 BE IT FURTHER RESOLVED that this Resolution shall become effective and final on the day following the City Council meeting where the resolution is adopted. The time within which judicial review of this decision may be sought is governed by the provisions of Code of Civil Procedure Section 1094.6. PASSED and ADOPTED this 15th day of May, 200 on Morrison, Mayor ATTEST: F 091 Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, Ili City Attorney Passed and adopted by the Council of the City of National City, California, on May 15, 2007 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Parra, Ungab, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California MICHAEL R. DALLA City Clerk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2007-98 of the City of National City, California, passed and adopted by the Council of said City on May 15, 2007. City erk of the City of National City, California By: Deputy 13.08.010 Chapter 13.08 UNDERGROUND UTILITY INSTALLATIONS PROCEDURE Sections: I. Subdivision and Redevelopment Requirements 13.08.010 Definitions. 13.08.020 Subdivision —Installation. 13.08.030 Multiple dwelling — Commercial —Industrial — Installation. Redevelopment —Installation. 13.08.040 13.08.050 Applicability —Exceptions. II. Installation Specifications 13.08.060 13.08.070 13.08.080 13.08.090 13.08.100 13.08.110 13.08.120 13.08.130 13.08.140 13.08.150 13.08.160 13.08.170 13.08.180 13.08.190 13.08.200 13.08.210 Title. Construction of article. Purpose and intent. Definitions. Exceptions. Public hearing by council. Notice of hearing. Districts designated by resolution. Unlawful acts. Exception for emergency service. Notification of affected persons and utilities. Responsibility of utility companies. Responsibility of property owners. Noncompliance — Discontinuance of overhead service. Responsibility of city. Extension of time. 441 I. Subdivision and Redevelopment Requirements 13.08.010 Definitions. "Redevelopment" refers to planning, development, redesign, etc., of all or part of lands of five acres in area, based on general welfare, and may include re- habilitation of existing structures, open space type uses (streets, parks, recreation areas, etc.), develop- ment of undeveloped areas which are either stagnant due to faulty street and lot layout or need replanning and land assembly due to scattered ownership or tax delinquency, but does not exclude continuance of existing structures. "Subdivision" refers to improved or unimproved land or lands divided or proposed to be divided, for the purpose of sale or lease or financing, whether immediate or future, into five or more lots or parcels, and condominium projects of five condominiums or more and community apartment projects of five par- cels or more as defined in Section 11535.1 of the Subdivision Map Act of the state, whether such pro- jects are new or are conversions from other forms of ownership. (Ord. 1506 § 2, 1976; Ord. 1181 § 2, 1967) 13.08.020 Subdivision —Installation. In conjunction with the approval of all subdivi- sions, the following shall be required: A. Underground Utilities. All existing or pro- posed electrical, telephone or similar distribution util- ity facilities shall be placed underground. Transform- ers, terminal boxes, meter cabinets, pedestals, con- cealed ducts and other facilities necessarily pertinent to such underground utilities or any required street lighting system may be placed above ground. All water distribution and sewer collection facili- ties shall be installed in conformance with the speci- fications of the city. B. Ornamental Street Lighting. Ornamental street lighting may be required in all locations and design as approved by the city council, upon recom- mendation of the planning commission. All such lighting on streets to be offered for dedication shall be electric. (National City Stipp. No. 16, 5-O6I 13.08.020 C. Fire Alarm Boxes. Provisions shall be made with the city for the installation of fire alarm boxes and wiring for same, in accordance with the fire alarm system of the city. D. Responsibility. The subdivider shall be re- sponsible for complying with the requirements of this section and shall make all the necessary arrange- ments with each of the serving utility companies and the city for the installation of all required facilities. (Ord. 2283, 2006: Ord. 1 181 § 3, 1967) 13.08.030 Multiple dwelling —Commercial — Industrial —Installation. Within the boundary lines of all property upon which is constructed or moved in a multiple -family dwelling of five units or more, a commercial, manu- facturing or industrial structure, the following condi- tions on installation of public utility facilities shall be required: A. Underground Utilities. All electrical tele- phone and similar distribution service wires shall be placed underground. Transformers, terminal boxes, meter cabinets, pedestals, concealed ducts and other facilities necessarily pertinent to such underground facilities may be placed above ground. All sewer collection and water distribution facili- ties shall be installed in conformance with specifica- tions of the city. B. Responsibility. The property owner is re- sponsible for complying with the requirements of this section and shall make all the necessary arrange- ments for the installation of such facilities with each of the serving utility companies and the city. C. Existing Utilities and Structures. This section shall not apply to existing utilities, existing struc- tures, nor to the alteration, extension or enlargement of an existing structure. (Ord. 1 181 § 4, 1967) 13.08.040 Redevelopment —Installation. Within the exterior boundary lines of all property and within the half of all streets bounding a redevel- opment project, publicly or privately controlled, of five acres or more, the following conditions shall be required: (National City Stipp. No. i6, 5-06) 442 A. Underground Utilities. All existing utility facilities within the exterior boundary line of the re- development project and within the half of all streets bounding the redevelopment project shall be relo- cated and installed underground. All electrical, telephone and similar distribution utility facilities to be installed within the exterior boundary lines and within the half of all streets bounding the redevelopment project shall be placed underground. All water distribution and sewer collection facili- ties shall be installed in conformance with specifica- tions of the city. Transformers, terminal boxes, meter cabinets, pedestals, concealed ducts and other facilities neces- sarily pertinent to such underground utilities or any required street lighting system maybe placed above ground. B. Ornamental Street Lighting. Ornamental street lighting shall be required in all locations and design as approved by the city council, upon recom- mendation of the planning commission. All such lighting on streets dedicated or to be offered for dedi- cation shall be electric. C. Television and Radio Antennas or Cables. Television and radio reception shall be provided by concealed antennas or by an underground or other concealed cable and one central antenna. D. Fire Alarm Boxes. Provisions shall be made with the city for the installation of fire alarm boxes and wiring the same, in accordance with the fire alarm system of the city. E. Responsibility. The property owner and/or developer shall be responsible for complying with the requirements of this section and shall make all the necessary arrangements with each of the serving 13.08.040 utility companies and the city for the installation of all required facilities. (Ord. 1181 §5, 1967) 13.08.050 Applicability —Exceptions. The provisions of Sections 13.08.010 through 13.08.040 shall not apply to the installation or main- tenance of overhead electric transmission lines and overhead communication long distance trunk and feeder lines. If the planning commission finds that exceptional circumstances or conditions apply to any portion of a proposed development as outlined in Sections 13.08.010 through 13.08.040 and the re- quirement of the installation of any of the improve- ments required herein would be impractical or un- reasonable because of the topography, soil, excep- tional drainage conditions or other condition, or it is not economically feasible to install the required installation, the city council, upon recommendation of the planning commission may grant specific modifications or waivers of the improvement re- quired. (Ord. 1181 § 6, 1967) II. Installation Specifications 13.08.060 Title. This article may be cited as the "National City underground utilities procedural ordinance." (Ord. 1414 § 1, 1974) 13.08.070 Construction of article. This article shall be liberally construed in order to effectuate its purposes, and no error, irregularity, or informality, and no neglect or omission of any officer in any procedure taken under this article which does not directly affect the jurisdiction of the council to order the work and improvement shall avoid or invalidate such proceeding. (Ord. 1414 § 2, 1974) 13.08.080 Purpose and intent. It is the purpose and intent of this article to pro- vide for the creation of underground utility districts in the city in which poles, overhead wires and asso- ciated overhead structures, as hereinafter defined, shall not be permitted. (Ord. 1414 § 3, 1974) 443 13.08.090 Definitions. Whenever in this article the following words or phrases are used, they shall mean: A. "City" means the city of National City, a municipal corporation in the state of California. B. "Commission" means the Public Utilities Commission of the state of California. C. "Council" means the city council of the city. D. "Underground utility district" or "district" means that area in the city within which poles, overhead wires and associated overhead structures are prohibited as such area as described in a resolu- tion or resolutions adopted pursuant to the provi- sions of Section 13.08.130. E. "Poles, overhead wires and associated over- head structures" means poles, towers, supports, wires, cables, conductors, guys, stubs, platforms, crossarms, braces, transformers, insulators, cutouts, switches, communication circuits, appliances, attach- ments and appurtenances located above ground upon, along, across or over the streets, alleys and ways of the city and used or usable in supplying electric, communication, community antenna televi- sion or similar or associate service. F. "Utility company" means and includes all persons and entities supplying electric, communica- tion, community antenna television or similar or associated service. G. "Affected persons" means the owners of real property located within the district, or proposed district, as shown on the last equalized San Diego County assessment roll and each occupant of real property located within the district or proposed district. (Ord. 1414 § 4, 1974) 13.08.100 Exceptions. Unless otherwise provided in the resolution creat- ing the district, this article and any resolution adopt- ed pursuant thereto shall not apply to the following types of facilities: A. Poles, and associated overhead structures, used exclusively for street lighting or signalization; B. Overhead wires (exclusive of supporting structures) connecting to buildings on the perimeter of a district when such wires originate in an area 13.08.100 from which poles, overhead wires and associated overhead structures are not prohibited; C. Overhead wires attached to the exterior sur- face of a building by means of a bracket or other fixture and extending from one location on the building to another location on the same building or to an adjacent building without crossing any public street; D. Electric transmission lines of sixty thousand volts phase -to -phase and above; E. Radio antennae, associated equipment and supporting structures for such antennae, used by a utility company for furnishing communication ser- vices; F. Pad mounted transformers, junction boxes and service terminals on pedestals above ground used to distribute electrical, communication and community antenna television or similar or associated service, in the underground systems; G. Temporary poles, overhead wires and associ- ated overhead structures located on private property, used solely during the course of construction on that private property; H. Overhead wires to provide temporary or emergency service installed subject to the provisions of Section 13.08.150; I. New or existing pole to anchor guy wires within the district necessary to support overhead facilities outside the boundary of the district or poles within the district which have been specifically excepted in the resolution creating the district. (Ord. 1414 § 5, 1974) 13.08.110 Public hearing by council. By appropriate resolution the council may from time to time call public hearings to ascertain wheth- er the public health, safety or general welfare re- quires the removal of poles, overhead wires and associated overhead structures within the designated areas of the city and the underground installation of wires and facilities for supplying electric, communi- cation, community antenna television or similar or associated service. Each hearing shall be open to the public and may be continued from time to time. At each hearing all persons interested shall be given an 444 opportunity to be heard. The decision of the council shall be final and conclusive. (Ord. 1414 § 6, 1974) 13.08.120 Notice of hearing. A. The city clerk shall notify all affected persons and each utility company concerned of the time and place of the hearings at least fifteen days prior to the date thereof. B. Notices given under this section may be given either by personal service or by mail. In case of service by mail, each notice must be deposited in the United States mail in a sealed envelope with postage prepaid. Each notice to an owner of real property in a district, or proposed district, shall be addressed as such owner' s name appears, and at the address listed for such owner, on the last equalized assessment roll of the county of San Diego. Each notice to an occupant of real property in any district, or proposed district, shall be addressed to occupant at the street address or addresses located on the real property. Notice given by mail shall be deemed to have been received by the person to whom it has been sent within forty-eight hours after the mailing thereof. C. The city clerk shall cause the resolution call- ing a public hearing as set forth in Section 13.08.110 to be published in a newspaper of general circulation as defined in Section 6000 of the Califor- nia Government Code. Publication of the resolution shall be for one time, not less than five days prior to the date of the public hearing stated in the resolu- tion. (Ord. 1414 § 7, 1974) 13.08.130 Districts designated by resolution. If, after the public hearing, the council finds that the public health, safety or general welfare requires removal of poles, overhead wires and associated overhead structures and underground installation of wires and facilities for supplying electric, communi- cation, community antenna television or similar or associated service within a designated area, the council shall, by resolution declare the designated area an underground utility district and order the removal and underground installation. Immediately following its adoption, the city clerk shall cause a 13.08.130 certified copy of the resolution to be recorded in the office of the county recorder. The resolution shall include a description and map of the area compris- ing the district. It shall also provide that the council shall by subsequent resolution fix the time within which: A. Property in the district must be ready to re- ceive underground service; and B. Poles, overhead wires and associated over- head structures shall be removed. A reasonable time shall be allowed for removal and underground installation, having due regard for the availability of labor; materials and equipment necessary for such removal and for the installation of such underground facilities as may be occasioned thereby. (Ord. 1414 § 8, 1974) 13.08.140 Unlawful acts. Whenever the council creates an underground utility district and orders the removal of poles, over- head wires and associated overhead structures there- in as provided in Section 13.08.130, it shall be unlawful for any person or utility company to erect, construct, place, keep, maintain, continue, own, employ or operate poles, overhead wires and associ- ated overhead structures in the district on and after the date when overhead facilities are required to be removed by the resolution, except as otherwise provided in this article. Commencing upon the date when the overhead facilities are required to be re- moved, the continued existence, presence or mainte- nance of poles, overhead wires and associated over- head structures in the district shall be and the same is declared to be contrary to the health, safety and general welfare of the public and unlawful, and the same may be abated summarily or as otherwise provided by law. (Ord. 1414 § 9, 1974) 13.08.150 Exception for emergency service. Notwithstanding the provisions of this article, overhead facilities may be installed and maintained for a period not to exceed thirty days, without au- thority of the council, in order to provide emergency service. The council may grant special permission, on such terms and for such durations as the council 445 may deem appropriate, in cases of unusual circum- stances, and where not detrimental to the public health, safety and general welfare and without dis- crimination as to any person or utility company, to erect, construct, install, maintain, use or operate poles, overhead wires and associated overhead struc- tures within the district. (Ord. 1414 § 10, 1974) 13.08.160 Notification of affected persons and utilities. A. Within fifteen days after the effective date of a resolution adopted pursuant to Section 13.08.130, the city clerk shall notify all affected utility compa- nies and all affected persons of the provisions of the resolution. The city clerk specifically shall notify the affected persons that if they desire to continue to receive electric, communication, community antenna television or similar or associated service, they shall provide, at their own expense, all necessary facility changes on their premises so as to receive under- ground service from the lines relocated underground of the supplying utility company subject to applica- ble rules, regulations and tariffs of the respective utility company on file with the Commission and to all other applicable requirements of state laws and city ordinances. B. Within fifteen days of adoption by the coun- cil of the resolution fixing the time within which conversions on private property and pole removal must be accomplished, the city clerk shall further notify all affected utilities and affected persons that the work required to change the facilities on the premises so as to receive electric, communication, or community antenna television or similar or asso- ciated service provided or to be provided by the utility company shall be accomplished on or before the applicable date set forth in the resolution. This notice shall also state the date all poles and related overhead structures are to be removed from within the district. C. Notices given under this section may be given either by personal service or by mail and in accordance with the provisions of Section 13.08.120. D. Within fifteen days of adoption of the resolu- tion fixing the conversion and pole removal times 13.08.160 of the district, the city manager shall cause copies of the notice, printed on a card not less than eight inches by ten inches in size and headed "Notice of Pole Removal" inletters of not less than one inch in height, to be posted conspicuously on every pole to be removed within the district. (Ord. 1414 § 11, 1974) 13.08.170 Responsibility of utility companies. If underground construction is necessary to pro- vide utility service within a district created by any resolution adopted pursuant to Section 13.08.130, any utility company engaging in such underground construction shall furnish that portion of the con- duits, conductors and associated equipment required to be furnished by it under the applicable orders, rules, regulations and tariffs on file with the Com- mission. (Ord. 1414 § 12, 1974) 13.08.180 Responsibility of property owners. The owner or owners of real property within a district shall be obligated to and shall be responsible for the commencement and completion of work as may be necessary to provide for the continuance of electric, communication, community antenna televi- sion or similar or associated service to the premises between the facilities referred to in Section 13.08.170 and the termination of service connection facilities on or within the building or structure being serviced, all in accordance with applicable orders, rules, regulations and tariffs of the respective utility companies on file with the Commission as of the effective date of the resolution creating the district, and in accordance with the applicable requirements of state laws and city ordinances. (Ord. 1414 § 13, 1974) 13.08.190 Noncompliance —Discontinuance of overhead service. A. In the event the owner or owners of real pro- perty within a district do not comply with the provi- sions of Section 13.08.180 within the time provided for in the resolution enacted pursuant to Section 13.08.130, the respective utility companies con- 446 cerned shall advise the city manager in writing of the location of such property and thereupon the city manager shall cause to be posted on such property a written notice on the property being served. B. The notice required by subsection A of this section shall include the statement that thirty days after posting of the notice all utility companies are authorized to discontinue electric, communication, community antenna television or similar or associat- ed service from poles, overhead wires and associat- ed overhead structures. C. Thirty days after such posting, all utility com- panies are authorized to discontinue electric, com- munication, community antenna television or similar or associated service from poles, overhead wires, and associated overhead structures. (Ord. 1414 § 14, 1974) 13.08.200 Responsibility of city. The city shall remove at its own expense all city - owned equipment from all poles, overhead wires and associated overhead structures required to be removed hereunder in ample time to enable the owner of the poles, overhead wires and associated overhead structures to remove them within the time specified in the resolution enacted pursuant to Sec- tion 13.08.130. (Ord. 1414 § 15, 1974) 13.08.210 Extension of time. In the event that any act required by this article or by a resolution adopted pursuant to Section 13.08.130 cannot be performed within the time provided on account of shortage of materials, war, restraint by public authorities, strikes, labor distur- bances, civil disobedience or any other circumstanc- es beyond the control of the actor, then the time within which such act will be accomplished shall be extended for a period equivalent to the time of such limitation. (Ord. 1414 § 16, 1974) ROBERT GULOTTA REAL ESTATE BROKER 1114 Idaho Avenue (760)390-2301 TEL Escondido, CA 92027 (760)743-7666 FAX November 30, 2010 City of National City Attn: Mr. Martin Reeder, Assistant Planner 1243 National City Blvd. National City, CA 91950 Re: The Fig Court Subdivision Dear Mr. Reeder The purpose of this letter is to request a waiver of the underground utility requirement of my subdivision application. My hope is that our project can be completed and will contribute to the achievement of two of National City's important community goals: Provide affordable housing and increase the homeownership share of city housing. All efforts, both public and private, must undergo a cost -benefit analysis. I believe that the Fig Court project will, on balance, provide more community benefits if offered as For -Sale affordable housing than if offered for rent. We want to complete this project, but to do so requires waiving the condition that utilities be placed underground. This waiver may be viewed from the City's perspective as a cost to the overall project but will be offset by the benefit of achieving important housing goals. The following data supports our request: • Cost to Underground the Electrical Service (including transformer) $297,252.00 • Cost to improve rear yards and drainage 40, 957.00 • Cost of hardscape and landscape 40, 000.00 • Rehab of interiors @ $22,500 per unit 450, 000.00 • Engineering costs tentative & final map 25,000.00 • Final Map Fee 5,000.00 • Termite Work 24,250.00 • Tentative Map Fee 9,712.00 • Consultants Fees 9,000.00 • • Subtotal $906,171.00 • Contingency Fund 10% 90,617.00 • • TOTAL EXPECTED EXPENSE WITH UNDERGROUND $996, 788.00 • • TOTAL EXPECTED EXPENSE W/O UNDERGROUND $699, 536.00 Mr. Martin Reeder Page Two November 30, 2010 This substantial investment on our part will allow us to offer the parcels (each with a duplex) for sale for $195,000. Based on U.S. Department of Housing and Urban Development (HUD) definitions, affordable housing for a low-income family (household earning up to 80 percent of San Diego area median income) (AMI), would be a home priced under $225,000. Based on this information, the sale price of $195,000 would be considered to be affordable. It is our understanding that, pursuant to NC Ordinance NCMC 13.08.020, the waiver we request is within the purview of your discretion in implementing city housing and development policy. Also, not all utility poles presently installed are covered by this request. Hence, whatever aesthetic value may be achieved by imposing this requirement on our project would be compromised by poles which will remain under any circumstances. We have obtained market studies from two different sources (copies attached), which confirm that in the present depressed market our efforts to divide the property will result in marginal commercial benefit to the ownership. Gaylon Nixon & Associates concluded on July 7, 2010 that the individual duplexes on separate parcels will be worth $100,000 less than our projected sale price, $195,000 per duplex, a total of $1,950,000. Separately DWS Properties valued the current single parcel at $2,100,000. The clear decision, independent of benefits to the community, is to save approximately $340,000 by not placing the utilities underground. The consequence of this decision is that, regardless of the fact that the rentals may remain affordable, the project cannot contribute to the City's goal of increasing the percentage of home ownership as a component of affordable housing. The summary in the first page of this letter deals with cost. Below is a comparison of the cost to the benefits from an ownership standpoint: As rehabilitated rentals (not split into individual parcels no underground utilities) As Owner -occupied homes on individual parcels (with underground utilities) Price per unit $975/mo $195,000 for -sale price Total value $2,100,000 $1,950,000 Cost $699,536 $996,788 Net $1,400,464 $953,212 Notwithstanding disappointing news about the present market and the seemingly obvious conclusion to be made from the table of values above, with your assistance in granting this waiver, we are determined to finish the job we started. As you are aware, we are not in this for the short term, having owned and operated property in National City for more than two decades. The remaining 28 conditions with which we will comply will benefit the residents, the City of National City and our pride of ownership. We now appeal for your help to keep the project feasible. Please grant our request for a full waiver of the underground utilities in the interest of realizing considerable net benefits to the community. Sadly, should the request be denied, economics prevent us from moving forward and the property will remain a rental. Mr. Martin Reeder Page Three November 30, 2010 It appears that, from a policy viewpoint, this decision hinges on the relative value of affordable home ownership vs. affordable rentals in the City. It is widely agreed that communities are more stable and cohesive when residents own their own homes. As a secondary, but important consideration, rational investors improve property for rentals very differently than they improve properties for sale. From a curb appeal perspective and the quality of interior work done, the housing stock of National City is improved further by our proposed subdivision and rehabilitation for sale. Robe Gulotta Attachments: Appraisal dated 7/7/2010 from Gaylon Nixon & Associates; Opinion of market value from DWS Properties July 2010; Copy of Fig Court check book expenditures 2006-2010; Copies of contractor bid to support cost estimates.