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7.1 Underground Utilities CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/13/02 4:00 P oM. AGENDA SECTION: NO. 7 ORIGINATING DEPARTMENT: DEAN ANDREW PLANNING & COMMUNITY DEVELOPMENT BY: ::DA APPROVED FOR AGENDA: ITEM NO. 1 BY: -'-' AA '--' v 'f...... Item Application #SR01-1, filed by the Salina City Planning Commission, requesting an amendment to Section 36-78 of the Subdivision Regulations to require that all utilities in new residential subdivisions be placed underground. BackQround Information Currently there is no requirement that all utilities be placed underground in new residential subdivisions in the City's Subdivision Regulations. The method of installing electric power lines and cable TV cable is left to the discretion of the developer and the respective utility companies. Southwestern Bell already has a company policy of installing their lines underground. The issue of whether to require that all utilities in residential subdivisions be placed underground has been discussed in the past few years by both the Planning Commission and City Commission and came up most recently when KPL proposed the installation of a transmission line along the Huntington Road ditch between Golden Eagle Estates and the Mayfair Addition. That proposal has been withdrawn at this time. In their previous discussions on this issue, the Planning Commission had not taken the step of recommending that any changes be made to the City's Subdivision Regulations. The placement of electric lines underground in certain locations has been a condition of plat approval in some cases but has never been a uniform policy or an adopted standard. One of the Planning Commission's 2001 goals was to bring this issue back for further study and discussion by the Commission. Mariposa is a residential subdivision in Salina which through restrictive covenants requires all utilities to be buried underground. The Flor De Sol and Briargate at Cloud and Markley are also subject to this restrictive covenant. Twin Oaks Subdivision, Golden Eagle Estates, Highland Meadows Hamlet, Valley View Estates and the Cedar Creek Manufactured Home Park southwest of Schilling and 1-135 all have underground utilities. Most of the newer subdivisions east of Ohio Street (Austin, Laurie, Eastgate and GICO) have overhead electrical service as does Woodland Hills Estates in east Salina and the Eastview Estates Addition on the south side of Magnolia Road east of Ohio. There is quite a visual contrast between Golden Eagle Estates and River Trail on the north with underground electric service and Eastview Estates on the south with poles and overhead wires. Two subdivisions have a mix of underground and overhead. Country Club Estates Additions No.1, 2 & 3 south of Country Club Road have underground lines while the newest addition to the east, No.4 has above ground power lines. In River Trail, a portion of the subdivision abutting Golden Eagle Estates and the oxbow was required to have underground service as a condition of plat approval but the lots abutting the levee will have overhead power. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/13/02 4:00 PoMo AGENDA SECTION: NO. ORIGINATING DEPARTMENT: DEAN ANDREW PLANNING & COMMUNITY DEVELOPMENT APPROVED FOR AGENDA: ITEM NOo Page 2 BY: BY: The Planning staff has also researched the subdivision requirements in other Kansas communities and has found that Wichita, Hutchinson, McPherson, Abilene, Junction City, Manhattan, Lawrence and Overland Park all require that utilities in newly developed subdivisions be placed underground. In Lawrence, this requirement was enacted in a separate city ordinance but their subdivision regulations were recently amended to include that requirement as were Manhattan's. Hays and Topeka's subdivision regulations are silent on this matter meaning that the choice is left to the residential developer and the utility providers. Policies and Practices of Utility Providers Staff has met with representatives of KPL, Salina Cable TV and Southwestern Bell to discuss the impact such a requirement would have on their local operations. The utilities were generally positive about underground utilities and indicated that KPL and Salina Cable TV could share trenches for service lines in most cases. There are separation requirements, both vertical and horizontal, for electric, phone and cable TV lines. Generally, phone lines are buried 18" - 24" deep and electrical lines are buried at least 36" deep. The City's standard 20' utility easement is wide enough to accommodate all these buried lines even with the separation requirements. Below is a summary of local utility companies and their current policies and practices: KPLlKansas Gas Service - No company policy or preference. Standard practice is to place electric wires above ground on poles in rear utility easement at no cost. Wires will be buried if developer agrees to do the trenching and laying of conduit and to pay the difference in cost. Gas lines have been installed in rear easements in some older parts of the city. Kansas Gas Service has moved toward placement in front yard between the street and property line in new subdivisions to aid in leak detection. Salina Cable TV - Follows the lead KPL. If above ground, they lease space on KPL's poles. If KPL goes underground, Cable TV also buries their lines, often times in same trench. Southwestern Bell - Company policy is to place all phone lines underground in rear utility easements. City of Salina - Sanitary sewer lines were installed in rear easements in pre 1980's subdivisions but the policy now is to place sewer lines in the street right-of- way in front of the house. Water lines are almost always located underneath or adjacent to public streets and not in rear easements. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/13/02 4:00 P.M. AGENDA SECTION: NO. ORIGINATING DEPARTMENT: DEAN ANDREW PLANNING & COMMUNITY DEVELOPMENT APPROVED FOR AGENDA: ITEM NOo Page 3 BY: BY: KPL PricinQ POliCY KPL electric service - KPL pays for the cost of installing poles and overhead lines. For underground lines, the developer is required to pay the difference between the cost of overhead service and the cost of underground installation. KPL estimates this cost to be on average approximately $480 per lot depending on the lot configuration and the size of the lots. This is due to higher capital costs for underground wiring, transformers and switching equipment. A pad mounted transformer in the rear easement can serve about four (4) lots. If the subdivision layout allows more lots to be served by an individual transformer, the cost per lot can be reduced. Developer's Costs for UnderQround Service Primary Service Primary service lines are the internal electric distribution lines that serve residential subdivisions. Under KPL's team and conditions filed with the Kansas Corporation Commission (KCC), poles and overhead wires are installed at no charge to the developer. The only exception to this is where slope, topography or the shape of the lots being served require an excessive number of poles to be installed. Under those same terms and conditions, KPL is required to charge developers for the difference between the cost of going underground vs. the cost of going overhead. KPL's internal cost differential formula or rate is on file with the KCC. The developer's cost for underground primary service is calculated as follows: Primary Service = The cost differential between underground and overhead (including the cost of transformers) + the cost of trenching, laying conduit and backfilling. Once the conduit is installed KPL pulls the wire and sets the transformers. Developers can reduce their out of pocket costs by doing the trenching, backfilling and conduit themselves. KPL refers to this as an in-kind contribution. All trenching and installation of conduit must meet KPL's specifications, meaning that if it's not done right it may have to be done over. KPL has fumished three examples of lot layouts and cost estimates which are attached as Background Material. As the Commission can see, the additional cost of going underground varies, just as the cost of water, sewer and streets varies according to how efficient the lot layout is. In KPL's local experience they have seen the additional cost for underground yary from $183/lot to $1 ,200/lot depending on the lot layout and terrain but report that systemwide the average cost differential is $480/lot for primary underground service. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/13/02 4:00 PoMo AGENDA SECTION: NO. ORIGINATING DEPARTMENT: DEAN ANDREW PLANNING & COMMUNITY DEVELOPMENT APPROVED FOR AGENDA: ITEM NOo Page 4 BY: BY: Individual Service Individual service lines are the lines that run from the neighborhood distribution lines to individual homes. KPL reports that developers rarely if ever pay for the cost of individual service. It is usually paid by the homebuilder or the future homeowner. The homeowner's cost for underground service to the home is calculated as follows: Individual service = The cost differential between underground and overhead ($47) + the cost of trenching, laying conduit and backfilling ($400). The average cost per lot is $447. There are many situations in Salina where homeowners have overhead primary service in their subdivision but have paid to put their individual service underground. Experience of Other Kansas Cities Because KPL's cost differential formula or rate schedule is on file with the KCC it does not vary from city to city, so the only cost variable is the layout and physical conditions in a particular subdivisions. For example, Manhattan and Junction City both have underground electric policies but their residential growth areas are in very rocky areas where the trenching costs are much higher than they would be in Salina. Both communities report that their underground policies have been accepted by the development community despite these costs. Potential AdvantaQes of UnderQround Utility Lines - Reduces service interruptions and damage due to wind and ice storms. - Avoids loss of tree canopy as well as periodic expense of tree-trimming. - Contributes to the aesthetic appearance of residential neighborhoods and the community. Disadvantaaes of Underaround Utility Lines - Increases initial cost of infrastructure thereby increasing site development costs. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/13/02 4:00 P.M. AGENDA SECTION: NO. ORIGINATING DEPARTMENT: DEAN ANDREW PLANNING & COMMUNITY DEVELOPMENT APPROVED FOR AGENDA: ITEM NOo Pge5 BY: BY: - Adds to the possibility that some lines could be cut by future excavation in rear easements. - Greater heat build up, lower voltage capacity due to greater resistance in the ground vs. air. Underground lines are not maintenance free after installation. Plannina Commission Action On October 16, 2001 the Planning Commission conducted a public hearing on a possible amendment to the city's Subdivision Regulations that would require electric service lines to be buried underground in new residential subdivisions. The Planning Commission heard comments from staff, two developers and representatives from KPL. At the close of the October 16 hearing the Planning Commission asked staff to provide additional information about the cost differential between overhead and underground service and how those costs are determined, to do additional research on the experience of other cities that require underground placement and to provide additional information about the City's streetlight policy. On November 6, 2001 the public hearing was reopened and the Commission received additional information from staff and representatives of KPL on the comparative costs of installing underground primary and individual service and the cost of installing and maintaining streetlights. At the conclusion of the public hearing the Planning Commission voted 7-0 to direct staff to prepare a draft amendment to Section 36-78 of the Salina Subdivision Regulations for discussion and consideration at the December 4 Planning Commission meeting. On December 4, 2001 the Planning Commission conducted a public hearing on the draft amendment to the Subdivision Regulations prepared by staff. The Planning Commission heard comments on the proposed amendment from staff, two developers and representatives of KPL. At the conclusion of the public hearing, the Planning Commission voted to recommend approval of the ordinance change as drafted. In addition to the minutes of the Planning Commission hearings, staff has attempted to summarize the comments made by the residential developers who appeared at the hearings. Staff has also sent copies of the proposed change to the Salina Homebuilder's Association and Salina Board of Realtors but neither of those organizations has made a formal response or taken an official position on this issue. The Deputy City Manager and Planning Director also explained the proposed change at a Homebuilder's Association meeting. Proposed Amendment The proposed amendment requires that all franchise utilities, not just electric lines, be placed underground in new residential subdivisions. There are exceptions provided for certain aboveground structures and distribution and transmission lines. A provision has been added which allows the CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/13/02 4:00 P.M. AGENDA SECTION: NOo ORIGINATING DEPARTMENT: DEAN ANDREW PLANNING & COMMUNITY DEVELOPMENT APPROVED FOR AGENDA: ITEM NO. Page 6 BY: BY: developer to request a waiver from the underground requirement where there is a demonstrated physical or financial hardship. The proposed amendment would apply only to new subdivisions approved after the effective date of the amendment. City Commission Alternatives 1. Approve the proposed subdivision text amendment as written. 2. Approve the proposed subdivision text amendment with any changes or additions to the language recommended by KPL, members of the public or City Commissioners. 3. Return the proposed amendment to the Planning Commission for consideration of suggested modifications to the ordinance language. 4. Table this matter for further study or to allow staff to provide additional information. 5. Take no action. In this case the current regulations would remain unchanged. One policy decision the City Commission needs to make is whether this standard should apply to all new platted subdivisions within the city or just new residential subdivisions. If the City Commission concurs with the recommendation of the Planning Commission, the attached ordinance should be adopted on the 1 st reading. Ene!: Application Background information from KPL Summary of developers' comments Excerpts of 10/16, 11/6, 12/4 PC minutes Ordinance #02 - P.C. Meeting Date August 7.2001 Application No. SROI-I Date Filed July 6, 2001 Filing Fee N/A Reviewed by DA Receipt No. .................................................................. Application for an Amendment to the Subdivision Regulations Salina City Planning Commission '. The undersigned being residents of the City of Salina, Kansas, do hereby apply to the Salina City Planning Commission for Amendment of Art;,.l" TTT R"QI1",r"m"nr-.. fnr TmprmTPmpn.." ReRervat;onR #lnd n"""'gn hy #lm"nd;ng S",,"",nn ':¡¡:.-7R- Utilit;eR to r"qll;r" #Ill 1lt-;1"".""", in n"tJ rp"iilpn..i"l subdivisions to be located underground. Applicant's Name (Print) Salina City Planning Commission Address 3ÖÒ W. Ash Phone 309-5720 Signature ~~ ~ Attach additional signature sheets if necessary. Be sure to include name, address, phone and sig- nature of each applicant on the additional sheets. If the applicant is to be represented by legal counselor an authorized agent, please complete the following so that correspondence and communication pertaining to this application may be for- warded to the authorized individual. Name of Representative: Address: Zip Code: Telephone (business): Facsimile: BACKGROUND MATERIAL FURNISHED BY KPL ~KPL RECEIVED OCT 3 1 2001 October 30,2001 PLANNING DEPARTMENT Mr. Dean Andrew Planning and Community Development City of Salina 300 W. Ash St. PO Box 736 Salina, KS 67402-0736 Dear Dean: To help clarify the cost per lot for underground primary, I have the following infonnation. KPL is required to follow the procedures filed with the KCC in conjunction with the tenns and conditions for electrical service. Urban distribution extensions for residential h~mes ~e done at no cost for overhead as long as conditions' of service ,are met: The ;exte~iön)êngth. p)ust be 300' 'or less per new residence. Anything ovèi300'per lotwoui(ÙeqUÎre' cùstofuðr contribution equal to that portion of the line extensioii'exceedmgthe iímìis:o,u, ',,;' ,""j , ," " ':' '-:' ::' , Underground pririiaiy extensions for residential subdivisions requires a customer contribution equal to the estimated cost' differential between the proposed underground and the conventional overhead system. Other conditions for primary extensions include but are not limited to: *Provide clear and pinned easements and lot lines *Easements legally recorded *Easements must be to final grade * Customer in kind must be completed Underground primary extension costs vary considerably. Some factors involved are: *Size oflots *Shape and layout oflots in subdivision *Matching or mismatched lot lines *Number of lots in subdivision' *Digging and conditions for trench and back fill , . * Contractor cost for trenching and bac~ fill, '", .Phases of construction,for complete' s:ul?4ivision , " "'Boring of existing streets' or existing facilities in the ,?ubdivision, 1001 Edison Place I Salina, Kansas 67401 2 I have enclosed 3 separate examples of underground primary extensions. These subdivisions . exist within our division. I used our subdivision pricing procedures and contractor estimates to calculate total primary cost per lot. _/ As you can see by these three examples, the cost per lot can vary considerably. In these examples the difference is all attributed to the design of the subdivision and the number and size oflots. These factors are controlled by the terrain and the developer's design. I did not include the cost of the service lines as the service is taken care of by the builder or the homeowner at the time of completing the house. If you have any questions, feel free to call me at (785) 822-3560. ëd~~ ~ Jac~ Engineering Mgr., KPL gj/am Enc. THE STATE CORPORATION COMMISSION OF KANSAS Index No...............................- THE l(ANSAS ~.<?~~...1\~.~!::~.~-~.!....~9~~~.... (Name 01 luu."C UuloLy) SCHEDULE........ ..?!.~.~~ ~~.::.~:.~.:._- . . GT&C-Elec 39 ReplAcing Schedule... """"""'" ......... Sheel................ Entire Terri tory """"0""0""'_""""""""""""'" ... .. """""o""'o""";:¡,~~;:;~~';:;o;;'O;;¡;'~¡;~~i~'~ 'a""I_blel Various which W&3 filed........................................................................0' ~o """,,-, or ."........ WId...LaDdJøc shall aoodlly the Lan ( u .IaOWD b..-ft. 63 90 Sheet..............o.oC.....o..........Sheeta GENERAL TERMS AND CONDITIONS FOR ELECTRIC SERVICE 7.03.02 7.03.03 7.03.04 Underground Electric Service Lines: If customer desires that existing overhead service lines be replaced by underground service lines such service lines may be installed by Company according to standards of Company and at customer's sole eost and expense. If customer desires an underground service line where an overhead service line is not in use or is inadequate, such may be installed by Company according to standards of Company. Customer will contribute to Company, upon request, an amount equal to the estimated cost differential between the cost of the underground service line and the cost of a standard overhead service line. Special Eauipment: Company may, at its option, install special equipment and/or facilities, such as nonstandard transformers, facilities and equipment for two-way feed service, automatic throwover devices, etc., when such device and equipment are requested by customer and where installation must be made on Company'~ lines. In such instances, Company may require a monthly rental charge based upon the cost of owning and maintaining such devices and equipment. Ownership of Equipment: All meters, service lines, and other equipment installed by Company shall remain the property of Company. Maintenance and Replacement: Company will maintain and replace. when necessary all service lines and appurtenances furnished by Company ~o serve customer. 7.04 ... 15S796"U ".°. 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')..eÐ -""- ~/&"lfð J Toto.t Þr~~~ pe.ra 10" }Þ. if~Cfft30 f ---------------.- _.- - - - -- - . --- 0----'- .--- qQ' ?6~~ ~ /<sf d. \ 'o-\- s per )(. ~ fY\-"" I I DWG. NO. SHEET NO. REV. OF Summary of Comments from Developers Received at the Planning Commission Hearings Tim Howison - Golden Eagle Estates Addition . In support of underground utilities. . Concerned about the inability of developers to recoup their costs if they run underground wire through undeveloped property to get to developing property. . Asked for clarification of the City's policy on wooden vs. decorative street light poles. Stan Byquist - Eastview Estates Addition . Concerned about KPL's pricing policies and stated that KPL's cost estimates were low compared to his personal experience with underground power lines. . Also concerned about the inability of developers to recoup their costs if they have to run underground wire through undeveloped property to reach property they are developing. . Generally in support of underground utilities, asked that there be a waiver provision for hardship situations. Frank Norton - Highland Meadows Hamlet Addition . Spoke about his experience working with KPL on installing underground lines and ornamental streetlights in Highland Meadows Hamlet. . Support an underground utility requirement because of the permanency of improvements installed in residential areas. Decisions made today have long term implications (see attached letter). , . .,REc:elVED DEC 0,3 2001 PlANNING DEPARTMENT FRANK C. NORTON 2524 E. Magnolia Rd. Salina, KS 67401 785-825-2165 December 3, 2001 Salina City Planning Commission 300 W. Ash Salina, KS 67401 RE: Amendment of Article III requirements for improvements, reservations and design by amending Section 36- 78-Utilities to require all utilities in new residential subdivisions to be located underground. Gentlemen: I am ~orry that I cannot attend your meeting on December 4, 2001. I respectfully urge you to favorably act on the referenced matter, Case No. SRO 1-1, as proposed in the staff report. I realize that this will involve some additional costs in the development process, however, I feel that the benefits derive from the aesthetics and function of an underground system far out weigh the costs. Residential developments represent a long term depiction of the respect which a community has for where and how its citizens live. The applicable standards must be set by the City since there is a wide range of differences among the developers Qf commercial properties. I feel that the future of Salina will be significantly benefitted by a favorable decision on this issue. Thank you for your consideration, I am æo~ Frank C. Norton FCN/kms Mro Webb asked but no semi parking? Salina Planning Commission October 16, 2001 Page 11 Mr. Thompson stated no. Paved truck parking, that was our origin that was our original approval. Mr. Andrew stated if that is the direction that you are incline to go, if you look at altematives four and five, those are some choices in t s of if you want to see that north 10ft. paved to get that truck parking are n there then the other alternatives are to allow essentially the south 10 to remain as is with or without some additional plantings or number five the more extreme which would have that all essentially altered and so ou would have the 10 ft. of paving and the 10 fto of river rock replaced w' some sort of live ground cover, but the difference between alternative ~ r and alternative five would be alternative four would direct the applica at the north 10ft. must be paved to allow for truck parking but that the re ining 10ft. could remain with river rock or alternative five is more definitive nd says that it all has to be removed and stored to a natural conditiono that if you are inclined to think that the truck pa ing needs to be there an rovided then you kind of narrowed it down to four d five with the further tion of requiring additional plantings from what is there t Yo we discuss that issue when we approved this? r. Andrew stated I think there is ¡ttle bit of extra space in there above the minimums in terms of the parking sta epths and the driving aisles, but I think it would be a stretch to say that this ping lot is designed to accommodate oversized vehicles or Ryder trucks or thin of that nature without them taking up two spaces at a time and I think the othe 'ssue on this is that we are just right at the one parking space per room ratio, th is not a lot of extra over and above the minimum number of spaces in this arking lot, so the site is somewhat tight, the parking lot is somewhat tight an I do recall that the truck parking and the lack of a place for it and the fact tha . might end up on the street was an issue at the original heairng. MOTION: . Mr. Thompson moved to deny the applicant's request. SECOND: VOTE: Mr. Hedges seconded the motiono Motion carried 4-1 (McDowell). Mr. Hedges asked does that give you enough direction then of where to go wi this? Mro Andrew stated yes we will just work with the applicant to get that area modified. #4. Preliminary discussion and consideration of a possible amendment to Section 36-78 of the Salina City Subdivision Regulations to require that all utilities in new residential subdivision be placed underground. Mr. Andrew gave the staff report as contained in the case file. Mro Salmon asked Dean when we discussed this a few months ago, I got the impression that is was pretty difficult to spread the cost of underground lines in a development, is that correct? Salina Planning Commission October 16, 2001 Page 12 Mr. Andrew stated essentially it is an up front cost for the developer which they can then pass onto the Iqt buyer or through some other means. There are ways to recoup the cost. It is being done today, the only question is should that be our standard for new subdivisions, or should that be something that remains strictly a choice? Mro Salmon asked and we are just now discussing new developments? Mr. Andrew stated new developments that would come in from this day forwardo Mr. McDowell asked it would apply to all of them? Mr. Andrew stated right it would be a subdivision regulation that would say regardless of your location, on the north, on the east or the southeast or wherever your subdivision comes in that in addition tq having paved streets and a drainage system and water and sewer that underground wiring is an improvement that would be required instead of a choice. Mr. Webb asked so when the developer passes that along it is not done through specials it is done through the cost of the lot? ~~ Mr. Andrew stated you would have to do it through some other mechanism. I think that Mr. Howison is doing it a little differently yet, almost like a private assessment to each lot, but it would not be something that you could roll into the City's special assessments because it is not a city or a public improvement from that standpoint. Mro McDowell stated I have a procedural question. We would have a public hearing on this and approve it or not approve it if we asked you to go forwardo Then we are actually making a recommendation to the City Commission? Mr. Andrew stated correct. Mr. McDowell asked this is not something we can do on our own? Mr. Andrew stated. correct this is something that you would make a recommendation on and it would be put into an ordinance that they would adopt or not adopt. Mr. McDowell asked but is that the only way that it can get to the City Commission is by our initiation and deciding yea or nay on a proposal? Mr. Andrew stated yes essentially the only way that an existing zoning or subdivision regulation can be amended is if the City Commission initiates a change like they did with the downtown, the C-4 drinking establishment changes, those were initiated by the City Commission, you can initiate a change such as this or the amendment that we had with the preschools, or if someone who is a property owner who is affected by a regulation wants to apply to amend the ordinance, they can do so. But the staff cannot just initiate a change, it has to be either the City Commission or the Planning Commission that decides to initiate it. Mro Thompson asked is there anyway that the buyer of the lot could receive specific information from KPL as to how much it would cost to put that underground system in on that lot? Can you break it down that way or not? Tom Sydow of KPL stated we can generally break it down per subdivisiono Mr. Thompson stated I guess my only concern is that and I think that all of our developers are very reasonable and certainly are trying to cut the best deal that they can for their particular buyers but I just wanted to make sure that the buyer isn't having to pay more for the underground system that they have than it actually costs. And is there any way that that can be determined? Salina Planning Commission October 16, 2001 Page 13 Greg Jackson of KPL stated it would be very difficult to actually put it as a per lot. We could do it per foot for the whole subdivision and then they can figure out how many feet they have in their actual lot. Mro Andrew stated you can go ahead up to the microphone and introduce yourselveso Tom Sydow of KPL. All of our rates are set by the KCC but we follow the general terms and conditions set by the KCC too. And what it comes down to on this is for overhead service we pretty much pay for that but if anybody asks us to go underground they must pay the differential between overhead and undergroundo We are neutral on the subject. We just need to follow the general terms and conditions set forth by the KCC. In your packet it shows that a majority of our larger towns that we serve have an underground subdivision policy. Most of them, almost all of them are exactly alike in that they look at just the subdivision residential feeders, not the main lines or transmission or subtransmission lines. The cost differential between the subdivisions systemwide is around $450 to $500 between overhead and underground. But if you look at main feeders or subtransmission or especially transmission, those cost differentials are gigantico Nobody has taken that step. It would be a major burden to developers or the future owners. Mr. Webb asked in regard to maintenance consideration, do you have enough history with underground to be able to compare maintenance costs in a subdivision with overhead versus underground? Mr. Sydow stated Dean pretty well laid that out. Obviously every lot is different, it depends on who plants trees in locations with underground generally you have costs up front with people digging and we recoup some of that stuff but some of them they cut and run. And then the long term, replacing underground long term is going to be more expensive than the overhead but there are pros and cons both ways. Dean has pretty well got it laid out in your packet thereo Mr. Webb stated I saw that but I was looking to hear from you if you had dollar numbers as to the cost. Mr. Sydow stated it is really different and it depends on where the storms hit to be honest with you. Mr. O'Leary stated I kind of relate a little bit to that question of cost simply because we face it on every subdivision for water and sewer systems and we get that request a lot, "well can't you just give me the cost, what does it cost?" Well unfortunately every subdivision is different as you know because you review those and surveying those subdivisions is going to be different in every case and I know that you can track 20 or 30 subdivision projects in Salina over the last 10 years and the cost to serve that subdivision with water systems is going to be different in every case. Now there will be some range of similarities just like they are showing the $450 range as some reasonable number to expect, but I guarantee you that just as it is for us that the cost to serve Golden Eagle Estates is going to be different than the cost to serve Eastview Estates which is going to be different than Barlow Estates and different than the Fairdale Addition and so on and so forth because of the nature of the way those subdivisions are laid out and the utility might need to run a straight line in the front yard or it might need to come through the back yard to get to another cul- de-sac and so on. So that is really the dilemma that I think we face in this discussion, we don't have this discussion with water and sewer utilities because they are all financed through special assessments and developers don't really have to deal with those they are just passed along to the owners so I know that that is one of the issues that we have wrestled with on staff review and I know that KPL deals with it regularly and unfortunately the best you are going to get is an estimate and then with some experience we will learn I think that the range will be reduced and hopefully the developers will think about these things as they are laying out their plans. It can't just be a layout that looks pretty, it Salina Planning Commission October 16, 2001 Page 14 has to be a layout that is efficient as well in terms of serving the site with streets, utilities and so on. Mro Webb asked you mentioned that the cable will follow the KPL whatever they do but is there a cost? Mr. Andrew stated I don't believe so, I think they recoup their cost at the time that a customer hooks up but you might ask Mr. Byquist or Mr. Howison whether the cable company has a charge for serving a subdivision but I believe that they recoup that at the time of individual service or hook up. Mr. Webb asked Mr. Howison would you and Mr. Byquist like to address the Commission. Tim Howison, 724 Neal. I have a few questions and comments on this because I think it is more complicated than what appears on the surface. The first thing that I want to say is that we are in support of underground utilities, you know but with some fair play being administered on all ends. You have basically a three ring circus going on hereo You have the City, you have KPL and in most cases the developer. Sometimes it is a builder opening up maybe 20 lotso So there is a lot of different situationso We are talking about new developments here which that is pretty easy to administer in that situation because you get estimates on subcontracting out burying your electric lines. You get a bid from KPL based on how many transformer boxes you are going to needo You combine these and see if the estimate with you doing part of it privately and their part on the connections works out less than if you have KPL do the whole enchilada. And in the past where we have done this three times, our figures have run between $800 and $850 when we took the total cost divided by the number of users that benefitted on thiso Now as Shawn O'Leary said it is very difficult a lot of times what you get into is you open up a developed area and right next to it you have an undeveloped area so you don't know necessarily how many people, how much usage will be obtained out of those transformer boxes through additional connections, so generally speaking we tried to stick with just what we have got on the number of connections versus whole cost, because it gets awfully complicated to figure out what is going to happen in the future on the other parcels of ground because sometimes you have changes and those lots right next to that wind up being fewer lots or maybe more lots. And so you pretty well have to work off what you have got. Now the main reason I came here was you have some different situations. You are talking about new construction on this. Sometimes you will have new construction and then you will have a gap in between where undeveloped ground may lie and then you have another area that wants to be developedo So one of the questions or statements that I would have is where is this cost, if everything is forced to be buried, which we already have that as a covenant in our area as far as connections and stuffo But if it is forced to be buried and say there is a quarter mile going in between there, between the area we own and say another area that we own, that other area in between is going to pick up a power main, potentially free of cost if there is no way to incorporate this into the policy to recoup this. Just like KPL has a policy on their gas mains to recoup your cost on the mains if you extend the main beyond an unincorporated area or undeveloped area, you can pick that back up as they develop that and that would be one of my concerns. Another concern would be if adequate power source is already in place on a development for the existing development. Say a change needs to come about across the road, half a mile down the road, so now all the sudden it is being asked that this go underground and you already have overhead on the perimeter but underground within the development, I think it needs to be looked at that all the benefactors on this. There is alot of times on this, there are alot of times, alot more people benefitting on this than just the existing development. Sometimes it is somebody down the road, it could be another developer, it could be a business that needs a larger power source, it could be a public school, it could be a lot of things. There are a lot of things that incorporate into this. And these issues have come about in the last year or so on a couple of different instances and I know sometimes that the City has had to address this on the distribution of cost in a benefit area, they have had to do it up on Marymount Road, they have had Salina Planning Commission October 16, 2001 Page 15 to do it on different areas where the City saw a need to maybe expand a road, move utilities and they proportion out certain amounts of benefit and this is a concern on us that there would be fair play involved on this, that it would be distributed you know according to the benefit or as best as they can come up with because it wouldn't be fair to force all of this on one party or the othero It wouldn't be fair to have the City pay for all of it or us to pay for all of it if there is more than one party benefittingo Maybe in some cases and I know KPL wouldn't want me to say this, but maybe KPL benefits because maybe they built too small of a power structure, or things change and they needed a bigger one so they come across our development area and this is one thing that enters into it so I think that fair play and the benefit area, the true benefit area of who is benefitting on this plays into this. I would have a question to KPL in reference to the underground on the three phase distribution lines within a development, will this still be an option or will there be any changes on the policy on this on us being able to subcontract this out? Mro Sydow asked Tim are you asking me if you will still be able to do in kind cost work? Mr. Howison stated yes will we still be able to bid on our own? Mr. Sydow stated yes you can. That is part of the policy but the main thing is the differential between the overhead and the underground and you can reduce that differential by providing in kind costs and that will continue. One of the things that you said Tim too, make sure that I don't get in trouble on is KPL doesn't have gas that is KGS that is not ours. Mr. Howison stated ok, small mistake, that part there covers that. The only other question that would come up is if and I think that I covered this a little bit, but on an established area where you had adequate power and this changes because let's say a road is widened, all the utilities get shuffledo If you don't incorporate something, some kind of statement or something on this, and then the developer or the consumer or whoever pays for this has to rely on basically what the City does or what KPL does, there is no protection out there for the consumer on some kind of reasonable fair play. You can't put it down in black and white but I guess the benefit area on who benefits on this needs to be somewhat talked out on these issues. When something changes, we don't want to get stuck with burying a big overhead power line and I think that they remarked that that wouldn't be the issue because it would be cost prohibitive. But you just need to be careful on that area because it could get clear out of hand. I guess that question going back to the gap in infrastructure on the power lines, on a distribution line if there is a quarter mile or half a mile that is void in there, somebody else owns the land and say there is another developer towards the north end that wants his piece developed up there and needs power, does KPL have any kind of procedure or policy of reimbursing the party that paid for the power to come in there to begin with. Because if you are covering a quarter of a mile or a half mile in between then all the rest of them just go ahead and hook up because it is paid for now, so we are going to go ahead and move on it. Kind of like N. Ohio Street out here. You know that could be a situation where you have a few people pay for it and if there wasn't policies and procedures and benefit areas and then the others just come on board but fortunately I think they are looking at a benefit area on that and so that is a question back to KPL, is there a reimbursement policy if there is a gap in there and they see it as a developable area so they go ahead and extend it and we pay for it, is there a reimbursement policy on that distribution line that is paid for in between? Mr. Jackson stated there again I think what we are talking about is new subdivisions and what he is talking about is a major feeder line going across or through to feed several subdivisions so there again it is not a question that it is going to mandated. If the customer that owns that property wants it underground, does not want it overhead, he would be paying for that differential. If he says go ahead overhead there would be no cost involved. Salina Planning Commission October 16, 2001 Page 16 Mr. Andrew stated what we are talking about is just the internal electric service lines for a subdivision, not something like you would see running up Magnolia Road or something that would serve a larger area. Those would still be overhead lines, we are just talking about the internal feeder lines in a subdivision that would feed street lights and individual houses. Mro Thompson asked strictly residential? Mr. Andrew stated yeso Mr. Howison stated I guess my remark on that would be though, if he says that they want overhead and then they turn around and we bury it underground, so all of the sudden they go underground on all of theirs, there should be a clause on the policy that they pick up the cost of that distribution lineo Mr. Thompson stated I think they are saying that. Mr. Howison stated but I mean you would have to go back and recapture it because they turn around and change in the middle of the stream I want to make sure that we are covered because if they tell staff one thing, then they turn around and start deciding that they want to bury it well then we need to be reimbursedo Mr. Webb stated that is covered with the KCCo Your charges and everything, what you can charge and what you cannot charge for is covered by the KCC? Mro Jackson stated sure. Mr. Howison stated ok and the other thing, and I know KPL, KG&E and these guys are covered by KCC on a lot of policies but there should be something I guess if you incorporate a policy that the policy is incorporated with these basic premises, blah, blah, blah etco, etc., because if you have a major change in KPL policy and to give you an example and I am not saying it is going to happen because they have been fair to work with and we work with them all the time, but if they said well now we are going to charge x amount of dollars for this and we are going to have to incorporate all the lines ourselves in the future on the interior instead of you guys doing it, that would change the looks of how this policy is because then we would be caught over a barrel because it is incorporated in with the City policy but now we have no optionso In other words if you don't base it on certain premises on this ordinance or policy that you are drawing, we need a little bit of something to hang our hat on you know to fall back on. I know that you can't get very specific but benefit area, who the benefactors are, just something along those lines, but we are in support of underground electric lines, don't get me wrong it is in our covenants that you have to go underground and I think I covered it before but we figured out the total cost of what it costs to go in there. Now the lots, the bigger the lots the higher the cost because it is figured on a linear footage basis. If you have bigger lots you will need more transfonner boxes generally speaking especially if the street is winding you are going to have a lot of odd angles. If you lay a street out rectangular it gets down to a minimum. Because then you can double up two lots on each side you know for one box on the back side, but sometimes you wind up with three on the odd lots that we have laid out with curves and cul- de-sacs and like Shawn had mentioned you have got to run a service line sometimes over to feed a cul-de-sac. One other thing and I don't know if it is really part of this, what you are trying to do but I understand that there is a policy or something in reference to the lights, the City lights, that if there is an overhead light with a creosote pole that there is no cost but yet if we go with a fancier pole then nothing is covered 0 If I am correct and I don't know all the details of this but it would be kind of nice to see a difference there figured if we try to go with better power poles that possibly the difference between the creosote pole and the fancier pole that there would be some kind of a credit system there. You probably know what I am talking about don't you? And I don't have all the specifics but if the city is truly looking at trying to beautify Salina Planning Commission October 16, 2001 Page 17 these areas this would be something that might be incorporated into this ordinance or policyo Let me see if there is anything else. Mr. Webb asked what you are talking about there is just the difference between a creosote pole and a fancier pole? Mr. Howison stated like Frank Norton's area up there. If you go with a fancier pole everything is on you, the whole enchilada. Mr. McDowell asked but you are saying that you would like if we go forward on an ordinance on underground utilities you would like a clause in there or have that ordinance to include allowing fancier light poles at no extra cost? Mr. Howison stated no just covering the difference, in other words, right now there is no encouragement to put in nicer light poleso If the creosote pole is put in I understand that there is no cost back to the developer. M~o McDowell asked the cost not being part of it, are you suggesting that we ought to put a policy requiring some type of light specific kind of pole in our ordinance? Because if you are not saying that then the situation would be just like it is right now. Mro Thompson stated not really Hamp, what he is saying is that if you change from the creosote to a special pole whoever was providing for the cost for the electricity and everything and the pole was being covered by someone the utility company or the city. Mr. Howison stated the fancier pole is covered by the developer. Mr. Thompson asked but if you change to another pole they don't even cover the electricity or anything? Mr. McDowell stated that is the way it is nowo Mr. Thompson stated no it is not, that is what he saying it is not, I don't know if it is or it isn't but he said that if you change to another pole the developer pays. Mr. McDowell asked there are street lights being put in right? So that decision is being made now under the existing policy. Mr. Thompson asked but who pays for it is what he is asking? Mr. McDowell stated well whoever pays for it now. Somebody is paying for it. Mro Jackson stated yes the City pays for it. They basically lease the wood pole and the light from KPL on a monthly basis and they offer that wood pole and mercury vapor or high pressure sodium light as a basic standard. If the developer wants to go with anything else he has to install that and take care of it himself. Mro Thompson asked including the vapor light and including the electricity and everything? Mr. Jackson stated yes. Mro Thompson stated that is what Mr. Howison is pointing out. Mr. McDowell asked so what are you recommending that we look at then is different from the way it is now? Mr. Howison stated well I would recommend that there would be just like your difference between the overhead power and your underground that there is a cost credit here established for the nicer pole. Salina Planning Commission October 16, 2001 Page 18 Mr. McDowell asked there is a what? Mro Howison stated well a credit back. In other words we are paying for all the cost of the poles going in on the fancier poles, it seems like the difference we ought to be paying is for the difference on the fancier pole going in and still be able to incorporate the cost back to the City which they would have already paid had we put up a creosote pole. Mr. Salmon asked you just want the difference between the poles? Mro Howison stated in other words it cost us $200 more to put up the pole, we will pay the $200. Mr. McDowell asked but aren't you doing that now? Mro Howison stated no, creosote poles are being put up and the City pays for all that. Mro Webb stated in automotive language you want to pay for the upgrade. Mro Howison stated pay for the upgrade but the cost difference, you know in other words we pay for the upgrade difference but it still falls underneath a creosote pole and the City pays for the light and electricity. Mr. Thompson stated if it costs $150 to put a creosote pole up with a light on there and that includes the electricity and the light and you want to put in a metal pole you shouldn't have to pay for the electricity and light all you have to pay for is the pole, that is what you are saying. Mro Howison stated right we shouldn't keep going on paying the services and everything elseo Mr. McDowell asked how is it done now if you want to put a fancy pole in? Mro Howison stated we pay for the juice going over to the pole and they go ahead and install their poleo Mro McDowell asked a fancy pole? Mro Howison stated a fancy pole we pay for all of it. Mro McDowell stated ok, so that already is what they are doing. Mr. Thompson stated Hamp what he is saying is that under the present system and I don't know if it is true or not, but he is saying that if you let the City go ahead and put in a creosote pole with a light, the City takes care of all the cost. Mr. Howison stated yes. Mr. Thompson stated now if I want to put in a fancy pole. Mr. McDowell asked now, currently today? Mr. Thompson stated I take care of all the cost, including the electricity and the light. What he is saying is why shouldn't he just be charged for the pole? Mr. McDowell stated ok so what you are asking is that this ordinance take on a new policy that deals with the upgrade of street lights. Because we don't have a policy like that. Mr. Thompson stated he doesn't care if you upgrade your street lights but if he chooses to what he is saying is pay the difference. Salina Planning Commission October 16, 2001 Page 19 Mro McDowell stated but he wants that in the ordinance is what he is saying, that is my point. Mr. Thompson stated yes. Mr. McDowell stated because if the City staff is going to go research this, he is asking us to look at something different than maybe is in other ordinances around the state. Mro Jackson stated correct. The one thing that you have to keep in mind is there has to be a standard for that pole, it can't just be every developer pick his own pole, because then the City and KPL both have the problem of maintenance and taking care of those poles in the future. Mr. Thompson stated sure. Mr. Howison stated I agreeo Are there any questions? ;;¡;~~, ¡'Ìi:l:¡ Stan Byquist, 233 Highland, Assaria, KS. I am the developer of Eastview Estates, one of the new developments off the comer of Ohio and Magnolia. I have had some experience with underground. We have put in 15 lots underground. Very simple, straight- forward, it was a straight run down the south side of Magnolia. The lots averaged approximately 90 ft. in width each and my costs are considerably higher than what KPL is stating. But first let me back up. I am in favor of underground utilities but I think what is starting to happen here is that the cost is being put on the homeowner, the developer will pay and he is going to pass it onto the homeowner and I don't think that is fairo Anyway let me back up now to my costs. My experience is and I would be happy to provide City staff with my receipts when I dig these out, a 90 ft. lot runs about $1,200 total to run the undergroundo It runs about $750 to run the underground, the 90 ft. width of the lot and then on top of that you have some survey charges because you have to do an elevation survey to set each one of the pedestals. And then another cost that I think is considerable and for the homeowner in the overhead situation, KPL will run the power from the pole in their back yard to their house at no cost. If you go underground, 135 ft. is $450 so if you take the $750 to bury the line across the lot, add $450 to run it from the transformer from the pedestal to the house you have about $1,200. You spread that out on a 90 ft. lot and it is about $13 per foot. So I just take exception to their figures and I would be glad to supply the City with my receipts. I think that one thing that we are missing here and I am really, really surprised at KPL, I think that when you look at the whole situation and I am for it, don't get me wrong, because it beautifies the city, it will make the backyards more aesthetically pleasing. I am sure on KPL's standpoint, even though I am a layman at this that your long term maintenance costs are considerably less going underground than having poles that you have to replace every so often, ice storms, wind storms, limbs coming down, squirrels hitting transformers, all of these are expenses on overheado With underground I think you eliminate a lot of these expenses. And I think what is starting to happen here is KPL is the big winner. And the homeowner is the loser, the homeowner is going to pay the bill and KPL is going to corne out way ahead in long term maintenance and I am surprised that they don't have some sort of figures on long term maintenance. And that is really all I have to say. I think that there are some other issues and Tim touched on some of them. What happens when you have got a development next to an existing development with poles, you have got poles in your backyard and now you are requiring to go underground what happens there. You just drop off the pole, go underground to each house? Mr. Thompson stated that is what has happened up on is it Bradley and Estates, there is one area there that is underground and then the next block is not, so I assume that happened there. Mr. Andrew stated yes that is one that we noted in our report where you have Country Club Estates Number One, Number Two and Number Three are all undergroundo When they did Phase Four they went overhead and they had a Salina Planning Commission October 16, 2001 Page 20 transition point where they had overhead and underground both backing up to each other. Mr. Byquist stated ok and I may be a little unclear on this but I will be developing a piece of ground on So Ohio. It is presently adjacent to what we commonly call Bonnie Ridge. There will be some sort of power line running south down Ohio through what will be my new subdivision. But ultimately it is going to have to serve the ground south of me which is owned by Mro Caywood and my question would be that if you are running a power source through one subdivision to another subdivision it would seem to me that that power source would have to be upgraded in size to service both subdivisions and if you do this there has to be some sort of policy that the first subdivision that the line runs through doesn't get stuck with providing oversized cable, conduit, etc. to serve the guy next door. I hope I am somewhat clear on that. Anyway to sum it up I am totally in favor of underground in the future subdivisions. I hope to go underground but I think the Planning Commission and the City Commission really needs to see who is benefiting here and where the cost gets shoved and who is paying for the improvements. Thank youo Mr. Howison stated I had one more clarification, Clay had mentioned the cost figures on how does the public know that what is being assessed to the lot is fairo How we have done it in the past is prior to the sale of any lot we go ahead and establish that amount not to exceed a certain amount. And usually we have hit within $50 of that in our costs, KPL costs and the cost of the subcontractor. There is absolutely no other costs that have been assessed 0 I can see how this thing could get out of hand let's say if you had a greedy developer that says well I am going to tack on a $200 cost of administering this all the way through but the disclosure is made prior to the sale of any lot and if they want to see the copies of the sheets and KPL's bids that is fine with me. I have made several copies up and given them to several builders. Any other questions on that? Mr. Webb stated thank you. Mr. Jackson stated just a clarification on Mr. Byquist's cost, his lots are set up to where there are only two lots per transformer being fed and so that almost doubled the cost per lot per foot because we had fewer houses on those lots or on those transformers, the other thing as far as the elevation survey, we require that the lots be to a certain elevation, the finished elevation, before we set the transformers and typically that is done in your natural work of your subdivision. The other thing that we mentioned, the $455 per lot is an average, that is the differential cost onlyo That does not include what the developer has to put into that as far as trench, backfill and conduit and that type of thing so yes the cost does go up because they furnish that part so he was including that in his costs so that is part of the difference of what his costs were and what our costs are. Mr. Thompson asked but they are all necessary to get to the house? Mr. Jackson stated yes they are all necessaryo But what the $455 is just the differential cost of what we are telling you. Mr. Webb stated well thank you all. Does staff having anything to add from this point? Mr. Andrew stated no I think we always understood that the burden of going underground was in some way going to get passed onto the developer or in some way maybe ultimately passed on to the consumer so it is a cost versus aesthetics, a cost versus maintenance issue. I think that what is difficult to pin down as Shawn mentioned is to give a typical cost or a typical increased cost because it is going to be variable based on each situation whether you have a double row of lots, whether you have lots that match up to each other, how many transformer boxes that you need it is going to be variable. But I think it would be very difficult to come up with a number and say this is average or typical or it won't exceed this, but it is more or less a pure policy kind of Salina Planning Commission October 16, 2001 Page 21 question for the Planning Commission to weigh the aesthetic and the appearance issues and the long term maintenance issues versus the cost just as we would with a paving standard for width of street or paving thickness or any of those things. You can make streets cheaper to build in the first place but they may not last as long or they may need higher maintenance so in a sense you are being asked what the standard for Salina residential subdivisions should be and should the standard be optional or should it be an adopted standard to go underground? Mr. Thompson asked have we looked at any other cities? Mr. Andrew asked in terms of cost experience? Mr. Thompson stated they mentioned that well over half of the major communities are underground, it seemed to me that it might be beneficial for us to look at their procedures or outlines or guidelines or whatever. Mro Andrew stated well certainly we have copies from Lawrence, Manhattan and McPherson and what their subdivision regulations say. In terms of the cost experience of individual users it may differ because in McPherson they have a municipal utility so the way that they cost things out and recover their costs is different than KPL. But certainly Lawrence or Manhattan and their experience might be something that we could benefit fromo Mro McDowell stated it might help to have to a question and answer thing based upon some of their experiences especially these questions or issues the developers have brought up because we are certainly not experts at it. Also nobody has really said much about the safety issue here of not having above ground power lines besides the safety I mean just for humans and I guess with that said I guess we don't need to worry about the squirrelso Isn't it safer to have them underground? Or can you answer that? Mr. Jackson stated that is a real good questiono We have very few contact problems with our overhead but at the same time it is possible but at the same time it is possible on the underground system also. We do have a lot of pad mount transformers run over by cars and those types of things get hit in different instances so it is 50/50 as far as the maintenance, in long term maintenance the underground is very expensive to come back in and maintain if you have a problem. For instance up on the hill, up on Applewood, if we have to go back into those backyards it can cost us $5,000 or $6,000 just to bore from one lot to the next so that 90 ft. lot becomes a very major expense to KPL in the future so the maintenance item is really a moot point, it is half a dozen of one and six of the other. Mro Thompson asked and are those costs borne by the landowner or KPL? Once it is in the ground it is your problem? Mro Jackson stated yes. Mr. McDowell stated and then it is passed onto the rest of uSo Mr. Webb stated in an electrical rateo Mr. Salmon asked Dean what kind of directive would you need from the Planning Commission to do a study to make this mandatory on new subdivisions? Mr. Andrew stated well what we would ask is if based on what you have heard today from KPL and the others whether you want to proceed with considering some language change that addresses underground wiring and a street light policy and things of that nature, if based on what you heard today you think that the cost structure is such that it is not something that ought to be made a requirement or a standard for development then you would just drop it as of today. Salina Planning Commission October 16, 2001 Page 22 \ Mr. Salmon stated well I would like to see it mandatory for all new subdivisions myself, it seems to me that this would be quite a study because you are going to have to incorporate a lot of different areas into this such as the developers have mentioned and also KPL into a study. Mr. Thompson stated I would like to see the study proceed. I don't know that I am ready to say that it should be mandatory at this point and time, but I would like to see a study proceed to see what the cost would be and what all the other ramifications wereo I mean these gentlemen have given us a lot of information which is really valuable, but golly I am a little bit more confused than I was when we started so I think that it really would be helpful to get more information before we just flat say this is the way it is going to be. MOTION: Mr. McDowell moved that the Commission authorize staff to prepare a proposed text amendment for consideration at the next Planning Commission meeting on November 6, 2001 if that is enough time and to include an investigation of the issues that we have discussed today, especially that. of street lights. SECOND: Mr. Salmon seconded the motion. Mr. Thompson asked is that enough time Dean? Mr. Andrew stated it kind of depends on the level of information, I think that would be pretty tight to gather that information and get any kind of real study of cost comparisons and to do both of those by November 6. Mr. McDowell stated as the maker of the motion I would like to, if my second would go along with it to say as soon as practical. Mro Salmon stated I would agree with that. Mr. Andrew stated what we would do is try to present you with a little more information and then if you reach a comfort level after receiving that we would proceed with an amendment, but I will take that as a directive to do additional research and study to get that back to the Commission and we will try to keep these folks informed of when this will come back again for discussiono ~..;/~YOTE: #5. Motion carried 5-00 /~. /~~' ,///' Mr. Andrew stated we have no other items today, the amend~.dlÍt on preschools was passed on first reading by the City Commission !.'..l/night, they also gave final approval to the annexation of the 160 som'>aéres on N. Ohio. For November 6 if it would work for you we would likp.~' J/sét a study session at 3:00 p.m. to go over and discuss landscaping rw:....cítlons and to look at a slide show that we have put together to discu!'l.""~dnd' get some guidance on some ossible amendments and then we ~'"íáve a couple of items, a rezoning and a k at the Comprehensive PI~..~(riat we tabled in September, so those would be ite ming back t9.,;üú November 6. We actually have three weeks between me . s th.i<-'Llme so it won't be an agenda like tonight for the 6th but :.~ wHi send ;' ,!,~i.~~r .~nd we would like to do a study session at 3:00 ." rther business the meeting ad)t.'.rned at 6:10 p.m. ~ Other Matters. ATTEST: ~ Salina Planning Commission November 6, 2001 Page 5 SECOND: VOTE: #3. Mr. Webb asked are there any other questions of staff? Dean p. of the requirements of 1-2 and I suppose this ordinance is written so that i her areas that were traditional industrial or 1-2 locations, but it says that th can be up to 4 sq. fto of sign area per linear foot of property and in this se if my math is right that would be a signage of about 800 sq. ft. on this perty which seems to be abnormally huge as we say for a dead end road probably would never be used but nevertheless I wondered if that could part of our restrictions if that would go along in this area? I know that thi . probably a nontraditional 1-2 zoning area, but nevertheless that is part of t requirements. Mro Andrew stated well this has com p before in previous cases and it is robably something that we need to k at with the Commission but one of our g that we have in the ordinan IS that for commercial districts we have what we planned commercia IStrictS which allows the Commission to put stipulatl s or conditions pproval and to restrict certain uses. But the 1-2 it is basically up or do on the 1-2 if you grant 1-2 you get what comes with it. I would agree at 0 . very unlikely that all that signage would be utilized but those are all fa s that go into the 1-2 that you don't have to have paved parking, that ca ave a rather large sign and there is no limitation on the number of . ns, but a e present without a planned 1-2 or planned industrial district re is not real ny latitude to put restrictions or conditions on appr I of 1-2 at this point. s amongst the Commission here? Mr. Thompson asked we are going to be . cussing that in the next area aren't we? Mro McDowell moved that the Planning Commissi approve the 1-2 zoning as requested in that the Comprehensive Plan calls for Os area to be industrial, that the existing structure on the property is, well it wou e very difficult for it to be put to productive residential use and that the trend 0 e area is toward industrial/commercial uses. Mr. Hass seconded the motion. Motion carried 7-0. Mr. Andrew stated this item comes as a recommendation from you and will go to the City Commission on the 26th of November which is the Monday after " Thanksgiving. Preliminary discussion and consideration of a possible amendment to Section 36-78 of the Salina City Subdivision Regulations to require that all utilities in new residential subdivision be placed underground. Continued from October 16,2001. Mr. Andrew gave the staff report that is contained in the case file. Mr. McDowell stated I really appreciate your research especially the graphics made sense to me, obviously I was confused at the last meeting. Mr. Andrew stated we will have to give KPL credit for that because we couldn't have come up with those numbers by ourselves. Mro Webb asked I have a question for KPL, this is your cost as an example it is 720 ft. at 97 cents and I would assume that is for wiring, it is between Oak and Plum on 21 st Street, I think it is the 3rd diagram. Greg Jackson and Tom Sydow with KPL. Mr. Webb asked Greg these are your total cost to install underground wire, underground cable? Salina Planning Commission November 6, 2001 Page 6 Mr. Jackson stated yes that is total cost for the primary. Mr. Webb stated but I don't see any place in there what your cost is if you put those in overhead. Mro Jackson stated ok, excuse me, this is differential cost. Mr. Webb stated oh it is differential cost, I didn't understand that. Mr. Jackson stated the total cost to the customer for primary but it is a differential figure. It does not include what we take out for the overhead. Mr. Webb asked the wire that you put in the ground is 97 cents more expensive than the wire that you put up on the pole? Mro Jackson stated correcto Mr. Webb asked you mean the transformers and everything are more expensive than what you have on the pole? Mr. Jackson stated correct. :~, Mr. Webb asked is that because of the installation cost primarily? Mro Jackson stated no that is the actual cost of the transformero Mro Webb asked it is not the transformer because the utilities are underground? Mr. Jackson stated there are differences in the installation cost too, but this deals with the material. Mr. Webb stated ok, that answers my question as long as it is differential, I thought this was just your cost to put it in the ground. Mro Jackson stated yes these actual costs are filed with the Kansas Corporation Commission in our terms and conditions. Mr. Webb asked and these costs are for Salina or for the whole KPL service area? Mr. Jackson stated for the whole area. Mro Webb asked it is an average? Mro Jackson stated yes. Mr. Webb asked so one could be higher than the other depending on the location? Mr. Jackson asked the underground primary, the cost of the wire, the cost of the transformer and the cost of the riser is the same company wideo Where you run into the difference is where the trench, backfill and conduit comes in in the different rocky areas or landscaping area, that type of thing. Mr. Webb stated so you are saying in Salina Kansas it is going to be $2.00 a foot for backfill. Mr. Jackson stated yes that is an average cost I got from the local diggers or providers of trenching. Mr. McDowell asked what is a riser? / Salina Planning Commission November 6, 2001 Page 7 Mr. Jackson stated that is what goes up the pole, the conduit going up the pole that has the head on it with the switches and the resistors and everything to bring the current from overhead to go underground. Mr. Sydow stated Hampton at the last meeting you kept hitting at what is the ultimate cost per lot on average and Dean pretty well spelled it out but simply put the developer is going to pay $450 to $500 per lot and the homebuilder or the owner is probably going to pay $450 for the service, so roughly $900 to $1,000 per lot. Mr. Webb asked and the more you can have properties back up to each other so that they can be used more efficiently, the better it is going to be for everyone concerned if that is possible. Mr. Sydow stated and the other thing that Dean brought up is the timing of when lots go in, good or bad depending on timing but people that go in first pay the cost and the people that go in and develop on down the road usually are the benefactors of that. It is not all good but that is the way it is. Any questions on street lights? Mr. McDowell asked Dean's question about who pays for the electricity or is there an electrical charge differential?- Mro Jackson stated in the City of Salina right now typically all the street lights that are put up for especially residential areas are a wood pole with the 175 watt mercury vapor light and that cost is picked up by the Cityo It is a monthly cost, we basically rent that pole and light to the City. The steel poles for instance out on S. 9th Street, the same difference. We have a steel pole rate that is a monthly rate for that light and that pole that is paid by the City when they ask for a steel street light pole. In the case of subdivisions if they want to go to with something other than a wood pole, we have offered in Hutchinson and different areas that I have worked with we have offered what we call a "buy down" and the developer actually pays the initial cost difference between a wood pole with an arm and a light and the steel pole with an arm and a light and then the City is billed a monthly rate the same rate as what the wood pole with the light iso So that helps those cities because they pay the same monthly amount but yet the developer gets what he wants but he pays the difference up front. Mr. Thompson asked Dean would you explain then what you mean then in your paragraph there where it says because monthly costs are higher for steel .' poles? Mro Andrew stated well on South 9th Street that is an arterial street and that is a City project. We are willing to pay as part of that streetscape we are willing to pay the higher monthly rate. What I am referring to is not a KPL policy but a City policy, without that buy down since they have a higher monthly rate for steel poles than they do for wooden poles the City of Salina's policy is that they are not willing to pay that difference so unless the developer pays the buy down, then the City would simply refuse to pay the monthly rate and tell the developer that they would have to pay it. Mr. Thompson asked but if the developer paid the buy down? Mr. Andrew stated and we were charged the same monthly rate as we would for a wooden pole then we would pay for that. Mr. Webb asked and that is how it is now? Mr. McDowell asked and they are saying that is what they do? Mro Andrew stated yes and the confusion is that we really haven't had any requests for the steel poles in a residential area, but going back and reading our policy the question was raised to me that they couldn't believe that we would make the developer pay for electricity for a steel pole, but the reasoning for that Salina Planning Commission November 6, 2001 Page 8 is that their monthly rate is higher and we will only pay the rate for the wooden poles, so they can buy it down and we will pay the wooden pole rate on a monthly basis. But that is where the confusion lies is that if a developer wants a steel pole and they are not willing to pay the buy down the City's policy would be to say then we are not paying for the light or the electricity. Mr. Thompson stated let's take it one step farther then and Mro Norton is here and maybe he would want to respond to that too, but are the lights different? I mean is it a different type of mercury vapor or what? If Mr. Norton were to pay the up front cost for example, would the City not pick up the remainder as you do on other poles? I don't understand why that is different. Mr. Andrew stated they would have to explain the difference, the cost, they perceive a cost difference between the steel and the wooden pole and I don't know if the light fixtures themselves are any different. Mr. Thompson stated I understand that. I am just trying to figure out why, if I understood you correctly, that if another developer in another area in Salina were to pay the buy down and the same light fixtures were used on that steel pole that are used on the wood poles that the City would pick up the cost after that. Is that correct? Mro Andrew stated yes. Mr. Thompson asked then how is Mr. Norton's different? Mr. Andrew stated partly because he has private streets and partly because he is using nonstandard light fixtures, but that is one of the reasons Mr. Norton is here is that he can explain to you what arrangement he has out there in Highland Meadows Hamlet. Mro Jackson stated we just offer the one type of steel pole and it is like you see out on S. 9th Street. We do offer it in two different heights for different applications but it is that same type of pole and that is not always what the developers like to go with. Mr. Thompson stated yes. Mr. Webb stated one other item, maybe I misunderstood Dean, you said the electric rate is different for a steel pole than a wood pole? Mr. Andrew stated well when we (the City) are paying that monthly rate part of that monthly rate goes for the cost of the pole and since our policy is that we are only going to pay the wooden pole rate, if the rate is higher a partial reason for the higher rate is that the pole is more expensive. We don't pay that. We will only pay the monthly wooden pole rate. Mr. Webb stated no, I am just talking about the electricityo Mr. Jackson stated no the electricity is the same. Mr. Webb stated I was going to say it is the same whether it is wood or whatever, but I understood him to say the electric rate varied. Mr. Andrew stated I'm sorry, I should have been more clear, the reason the monthly rate is higher is because of the cost of the pole. Mr. Jackson stated it is like renting a Cadillac or a renting a Chevy. The gas is the same price but the Cadillac is a little higher than the Chevyo Mr. Webb stated I understand that, I thought I heard from Dean that the electricity was a different rate. Salina Planning Commission November 6, 2001 Page 9 Mr. Andrew stated the monthly rate is higher mostly to reflect the increased cost of the pole. Mro McDowell stated the bill is higher. Mr. Webb stated the bill is higher but the electricity rate is the same. Mr. Sydow stated Greg has got the cost difference spelled out, the difference is significant which is probably why you don't see a bunch of it is $2,600 versus $1,000 and that is if you have an auger in baseo If you have a concrete base the difference is about $1,000 but then again you have more labor and material too so it is not cheap. Mr. Webb stated thank you. Let's hear from Mr. Nortono Frank Norton, 2524 E. Magnolia Road. Regarding my experience with respect to the street lightso At that time the cost from KPL as Greg has explained is set by the Kansas Corporation Commission, therefore, it is a fixed monthly amount or was at that timeo Greg was really helpful to us in analyzing the situation and the situation with us was that we wanted to get something other than the wood poles first of all and secondly we wanted to consider something other than mercury vapor. Mercury vapor is mor.e expensive to operate than high pressure sodium. The light is a harsher light than the yellower or tan light of high pressure sodium so we wanted to look at all possibilities. One thing as Greg has explained the standard KPL steel post is 30 fto high and that projects quite a bit of light into the home. We wanted to go with a shorter pole if we could because it was just to highlight the street surface and that is what we were after. We wanted to get a fixture that would direct the light more to the street surface so we ended up putting up a 20 ft. pole, it is a little easier to service than the 30 fto pole, our cost, our net cost was about 27% after we purchased the poles, installed them, paid the electricity then to pay the monthly charge that KPL has with the approval of the Corporation Commission on their steel poles, so we felt that it had a number of advantages, a better light, a better height, a lot more efficient in terms of our cost and we are very well satisfied. Of course we have a homeowner's association situation there and that means that we are in control of the streets and the lights and so we have the responsibility to maintain them. That has not been a problem for us, they are pretty simple in terms of the operation and we have had very good luck, so that is just an option that is available to a developer. On that question or that proposition do you have any questions? Mr. Andrew asked does the Homeowner's Association then pay the monthly electricity bill for the lights? Mr. Norton stated yes and replace bulbs, replace the electric eyes. Occasionally there will be something else that will come up. The poles as I say are shorter, the wind factor as far as their endurance is concerned is as good as the KPL pole so it is a workable arrangement as far as we are concerned. Mr. McDowell asked who installed them? Mro Norton stated KPL told us how to install them, we hired an electrical contractor to install them, we put in the bases and we put in our own conduit and pulled the wire for them and we have to have a separate easement for the wire to the poles and that is covered by our easements on the development. Mr. Hass asked so you own the street lights, you are not renting them from KPL, just the electricity? Mro Norton stated that is correct. And remember KPL has to go systemwide on this and they have to factor in every cost that might exist in their service area and they have to average that out and it has to be fair to the property owner and fair to them and they have to consider a lot of expenses that we don't have to consider in terms of our kind of operation. On the underground electricity, if I Salina Planning Commission November 6, 2001 Page 10 may comment just briefly on that. I have been working for clients and myself in the development process for a long time and the thing that has struck me in terms of my recent experience in residential development is the permanency of your decision. In commercial you tend to change things if things don't work just right because the resources there to make that changeo In residential development it is pretty well locked in from the beginning and it lasts an awful long time and I am personally convinced that to the extent that I am able and it is reasonable I want to do everything to make the residential environment most acceptable. And to me the underground electrical service is a big factor in that connection. And it is interesting if you ever go back to developments that have been there for a while and they have had different things the best thing to do in my judgement is to put on your walking shoes and walk through them and I recently had a chance to walk through Mission Hills next to the Kansas City Country Club, and when that was originally developed apparently everything was overhead and since then they have done the best they could to put things underground and even within that area a block from George Brett's house, a block from the Kaufman's house, the entrance of the Kansas City Country Club, there are still a few poles here and there and you can tell that they are doing everything they can to eliminate those. I realize it is an additional cost, but it is an important factor because it is everybody's home and I think that we have an obligation to make it as desirable as possible. Any questions? Mro Webb asked are there others that wish to speak? Stan Byquist, 233 Highland, Assaria, Kansas. I am local developer, my most recent development is Eastview Estates in southeast Salina which is what we would like to call an affordable new neighborhood in Salina. I appreciate the opportunity to speak here in front of you and I would like to make a couple of pointso I will be brief. Overall I am in favor of the underground services. I think that if you take the figures that KPL has given us from $900 to $1,000 a lot and assuming those are correct which they are fairly close, they might be a little high but they are close. If you have a $10,000 lot and you add $1,000 to it that is a 10% increase to the homeownero If you have a $20,000 lot and you add $1,000 to it it is a 5% increase to the homeowner, so I just want you to consider that and be aware of that. I think it is real important that some of the other cities have given some waivers or hardship or whatever they like to call it. I think it is important that as Salina goes through this process that that be included in the overall plan because I am already working on a couple of projects that are, well one of them is about 2 years out, another one is probably about 7 years out. The one is 7 years out because it is such a tricky piece of ground and it has had -' such a history, to bury the entire electrical system on that particular piece of ground would be an extreme hardship and I can go into particulars if you like I would be glad to. But that is my particular reason that I think that although I am in favor of it all the way we need to just have an out in case there is a certain area of a development that it is just impossible to go underground and I am aware of where one will happen it is impossible to go underground thereo The other thing and I don't know if anybody can do anything about this and KPL addressed the problem. I will be facing this in southeast Salina in the spring of 2003 so it is fairly closeo If you look at your drawing on Plum Street and you have got your lots and the transformers are on one side of the lot, as they said, the original developer, actually the original homeowner, because of the way Plum Street is set up there, you have only got one transformer for two houses. But the ultimate is one transformer for four houses, it increases the cost on that. Now if you were to go just to the right of Plum Street and that developer comes in, these homeowners have already paid for these transformers and the developer to the right is going to be able to come in, tag on at no expense other than laying the cable from the transformer to the house. So like they said, the original developer is the one that pays the bulk of the expenses and it actually goes to the homeowner and I don't know whether there is anything that can be done about that, if there is anyway that those costs can be recovered, I don't know, I don't have an answer to this. It is something that as you go forward and I hope you do go forward with this that you do consider maybe there is a way to recoup some of these costs to the original homeowners. That is all I have to say and would be happy to answer any questions if you have anyo Salina Planning Commission November 6, 2001 Page 11 Mr. Webb asked maybe a couple of questions Stan. It appears to me that that would behoove the developer to make the best economical use of the ground when he buys ground as an example if there happens to be a 22nd Street over here if he would buy another three acres of land, he could develop the back side of 21 st Street and make that more economical for his development when he sells those lotso Mr. Byquist stated I agree with youo Mr. Webb stated that maybe part of that process that needs to be done at the timeo Mr. Byquist stated I do agree with you but there are some situations and I am already involved in one that it won't happen, the guy next door won't sell, he is going to develop at a later date and tag on. Mro Thompson asked Dean is there anyway as we look at curbs and guttering and sewer lines and that kind of thing is there anyway that that could become a special in that those costs could then be distributed to the development as it progressed? Mr. Andrew stated that might be a better question for Shawn, but I don't think that this would meet a definition from the statute anyway of a public improvement and I will let Shawn respond to that. Mr. O'Leary stated I believe that is right. The state statutes are very clear in terms of using special assessment financing only for public improvements, publicly owned and maintained. There are some cities that provide public electricity through sort of a private configuration and that may be possible in those locations. We don't do that here in Salina. Mr. Hertzenberg asked would the City be willing to entertain doing that? Mro O'Leary stated it is not a City option it is a state regulated'statuteo We are at the mercy of the State of Kansas in terms of special assessment financing but I would agree with the Chairman that certainly one of the issues that we could deal with regularly is the dealing with developments early ono I think that the answer that Stan is looking for is a well engineered plat is the answer to that question. There is always going to be a boundary, there is always going to be / an edge and that next owner is going to have an edge and it goes on and on but I think that the answer to efficiency in streets and water and sewer and electricity and gas and telephone and so on is in engineering that plan from the beginning. Not doing a plat that is pretty and nice and so on, but doing a plat that is efficient and pretty and nice and we are getting better about that here in Salina, but we do have some work to do in that area and I think that electricity is one of those things unfortunately that I think is an afterthought for most of the developers in Salina that we do business with. It is the last thing that we think of when in fact it should be one of the first thingso Mro Thompson asked is there any way to get around specials to have some other kind of assessment which is not defined as a special that the City could control? Mr. O'Leary stated good question, I don't know of too many creative financing tools that the City has outside of the ones that we use, particularly special assessments in residential areas. The only thing that I can think of is that obviously we mentioned it here that the City is very much in the business of street light systems and payments and so on and so forth 0 There maybe something there that could be done to offset some of the cost in that as it relates to the street light system particularly the decorative poles and systems that serve lights and so on but I am not sure that there is much there in the way of primary power service to properties that could be offset with a City financing mechanismo Salina Planning Commission November 6, 2001 Page 12 Mr. Babb asked Stan I have just one question, you talked about 10% on a $10,000 lot and a 5% on a $20,000 lot for what you refer to as affordable housing? Mr. Byquist stated yes. Mro Babb asked do you think that as a developer that would discourage you in any way from developing affordable housing with the underground requirement? Mr. Byquist stated that is a real tough question and I have mulled it over time and time again. I think the only thing that I can relate back to is Eastview. If maybe we had Eastview to do over again possibly we would have gone undergroundo Would it be as affordable? No it surely wouldn't be. Is it successful? Yes it is very successful and I think one of the reasons is the affordability factor and that is sort of my thinking in that as life goes on things change and we don't know what is going to change out there, and that is why the one little voice over here says I hate to see us get totally locked into something without some type of mechanism that maybe will help us with problems down the road and that is why I guess I look at the hardship wording in here. Nothing is forever and I hate to see us get totally locked in without any type of escape mechanism if there are particular circumstances or economic conditions if things change or who knowso I just think that somewhere in the program there should be a little leeway if things change and we need to work around them. Mr. McDowell asked you use the term affordable homes, what lot price, house price, what is your definition in a range of affordable? Mr. Byquist stated we started Eastview three years ago the lots came on the market and the first streets were finished actually a couple of months previous to that. We started those on the market through the realtors at $10,500 for a lot that was 140 fto deep lot x 85 to 87 fto frontage. Mro McDowell asked so like 1,200 sq. ft.? Mr. Byquist stated yes whatever it figures. We went in there with a design plan, straight streets because they are less expensive. The overhead power because it was less expensiveo We have done everything we can to make that neighborhood very, very affordable. At the time that we came online at $10,500 I, don't quote me on this, but I am fairly confident that you couldn't buy a lot in that part of Salina for under $15,000. Now since then it has caused some of the competitors to drop their prices and it actually has been a better deal for all homeowners in that part of town. Mro McDowell asked so what do you think a home costs? Mr. Byquist stated our homes, I have one builder building brand new ones now about 1,200 sq. ft. and he is coming on Iilie with an unfinished basement but pre-plumbed for a third bath, he is building like two bedroom, three bedroom, two bath, double car garage and he is coming online at about $115,0000 Mr. McDowell asked plus the lot? Mro Byquist stated no including the lot. And that is about the final finished price sold through a realtor. Mr. O'Leary asked not including the special assessments right? Mr. Byquist stated not including the special assessments. Mr. O'Leary stated add about $15,000 to that. Mr. Byquist actually less. Salina Planning Commission November 6, 2001 Page 13 Mr. Thompson stated not on that. Mro Byquist stated our first block was about $13,000 and now our specials run between $10,000 and $11,000 per lot. Mr. McDowell asked so $125,000 then? Mr. Byquist stated correct. Mr. McDowell asked including the lot and specials two bedroom, two bath 1,200 to 1 ,400 sqo ft. Mr. Byquist stated two or three bedroom, double car garage and they go up to oh you know there are some in there that are $160,000 to $170,000 they are bigger homes, finished basements. Mr. McDowell asked that would really meet your definition of affordable right? Mro Byquist stated the lower end of a market that I think was not addressed in Salina where maybe a younger couple can go out there and purchase a newer home, have warranties, good schools, good streets, don't have to worry about anything for 20 or 30 years. Mro Webb asked now your upcharge for the customer that buys the home, the upcharge on underground utilities would be about 3/4 of a % or less total cost delivered? Mr. Byquist stated in the total cost. Mr. Webb stated total cost delivered it is less than 1 % of the total cost of the house. Mro Byquist stated you are correct. Mr. Webb stated because nobody buys a lot to just hold it, they usually want to put a house on it. Mr. Byquist stated right. Mr. McDowell stated amoritized over 30 yearso Mr. Thompson stated I would just like to say to staff and I hate to keep riding this horse, but I would like to see the staff pursue this thing of seeing whether or not we can help avoid the freeload hookups with some sort of an assessment and that assessment can be called whatever you want to. I mean I understand what you are saying in terms of statutes, but there are more ways to skin a cat than that one and I just think that we need to look at is there something else that we can do to make sure that future people that buy land or hook on are going to share in those costs too rather than making the original people handle all that. Mro Byquist asked if I might add? Particularly in my situations that I am going to be facingo These tag ons are you know on the perimeter lineso Everything that I can do internally will be for houses off of one transformer, but it is the perimeters that you don't have a whole lot of control on. Mr. Webb stated but part of this problem I think too Clay is the fact that we are dealing with KPL rather than the City as far as establishing the regulations and the criteria for this. KPL as a business wants to be paid when they put the equipment in at this particular point and they don't know that there is going to be another development 10 years down the road or 5 years down the road or ever. Mr. Thompson stated I don't disagree with that but what do we do when we put in streets and storm drains and sewers? Salina Planning Commission November 6, 2001 Page 14 Mr. Andrew stated we do and I am sure Shawn can site numerous examples, I can think of one right off the top of my head where we have this issue come up many times where the first developer in pays and the other people get to tag on for free. The one case that comes to mind is Valley View Estates which is closer to Markley than the older Valley View was before, but the people in Valley View Estates extended a water line to the west from Markley Road to a point and the people in Valley View then tied into that and ran a line into their subdivision. They didn't pay for the piece that brought it from Markleyo Another one that comes to mind is Flor De Sol where Mro Gile put in a sewer line and ran it from Markley to the west edge of his subdivision and he was looking for a way that whoever developed that land to the west would have to help pay for the cost of that sewer line, but there is no such mechanism in place because it is a public line and once it is in service the party that develops that property to the west of Flor De Sol is going to be able to hook up to that sewer line at no cost for the original installation. They will have to pay for whatever extension is done but they will not have to pay for that piece that ran from Markley to that point and I think that Shawn may have some other examples. But electricity certainly would not be the only example of where the first person in or first developer or first homebuyer in is paying for something that somebody is going to benefit from later. Mr. O'Leary stated I cannot think of too many cases where this doesn't happen quite honestlyo There is always another manhole, there is always another water valve there is always another gas meter that is the end of that area. I guess the consolation that I have always seen is that the next developer has the same thing, he is paying for that next perimeter and the next one and so on and so forth, so I think it comes out in the wash quite honestly, but every utility would apply, it is not just power and certainly the more expensive version would be sewer, I think that sewer would be considerably more expensive than power in most cases. Mr. McDowell asked and each developer makes an economic decision to do the development based upon that cost and that has been going on since when was the town founded? Mr. Andrew stated it might be useful to hear from Mr. Hertzenberg as to how that cost of underground was distributed iR Golden Eagle Estates. Mr. Hertzenberg stated my understanding is that it was included in the cost of the lot and assessed to the private homeowners. Mr. Andrew stated that was a one time cost, it is not like you are paying for the underground service over a 10 or 15 year payout, it is an upfront cost. I would imagine that Mro Norton probably rolled the cost of underground into the cost of his lots out in Highland Meadows Hamlet. Mro Norton stated correct and if I had the situation regarding this transformer serving something that could possibly be on the neighbors, the electrical service is not a public utility in terms of the right to connecto I would just put the transformer away from the property line and not grant an easement until I got paid to connect to it because you have that right and that is what I would do. Mro O'Leary stated a well engineered piano Mro Byquist stated thank you Frank that thought had crossed my mind but I didn't know if it was acceptable or not. Anyway I appreciate the opportunity to speak to you and I would like to leave one thing with you, somehow leave a little safety valve in this thing for when somebody hits a road block which just can't be overcome. Mr. Webb asked are there others to speak to speak to this issue? If not we will bring it back to the Commission for possible action. Salina Planning Commission November 6, 2001 Page 15 MOTION: Mr. Hertzenberg moved to accept the staff recommendation to bring this back to the. Planning Commission at the December 4 meeting taking into account the additional comments and information from KPL representatives and input from interested citizens as to whether the placement of electrical lines underground in new subdivisions should be an adopted city standard or remain optional. If the Planning Commission wishes to consider such an amendment to the Salina Subdivision Regulations, and I would propose that, the Commission should authorize staff to prepare a proposed text amendment for consideration at the next Planning Commission meeting, so I would move that we would instruct the staff to move forward with that text amendment. SECOND: Mro McDowell seconded the motion. Mr. Webb asked would you like to recommend that part of that, part of that text be that someway that we qualify an overbearing hardship or something? Mr. Hertzenberg stated yes I would be open to that. I would have some caution though, I don't want to see a hardship provision that ends up being the standard as in Abilene. Mro 8abb stated maybe it should state some kind of out if there is a rocky terrain or it is just not doable as opposed to and I asked Stan that question of prohibitive cost to actually develop the propertyo Mro Andrew stated there are a number of examples that we have looked at that do have specifics and we will just try to get some hardship language that is not just vague and general but specifically states what might be grounds for hardship. Mr. Webb stated if you double or triple the costs it is not going to be economically feasible to begin with probably as well, something along those lines. Mro McDowell asked do these hardship waiver discussions put the burden on the developer to prove their case or how does that work? Mr. Andrew stated for the examples that we have seen, they would have to get with KPL and they would have to provide some sort of written documentation of what the additional costs are and what causes that additional cost. .' Mr. McDowell stated Mr. Chairman the second accepts the modification to Mr. Hertzenberg's motion. VOTE: Motion carried 7-0. #40 Annual Review of Salina Comprehensive Plan Part I. Continued from September 18, 20010 Mr. Andrew gave the staff report as sent to the Planning Com' MOTION: Mro Thompson stated I just have to say that I am ve uch opposed to the project and in favor of item number five, and my re ns for that are many. If I were a developer in either River Trail or the oth ne on the south side, I think I would be more than upset with the proje at is being proposed and I know having been on the Planning Commisso as long as I have that the people who reside in Golden Eagle had expr 8d their concern about covenants being . ated and their expectation ot being met and it is unfortunate when you 100 that map that we only go 200 ft. beyond to ask people about what they fee out it. Re he only people involved in that are the people the two or three of t own land and two or three builders who have purchased land and it w ost be to our advantage if the developers on this particular project w to take e adjacent lots because it would give us a little bit more dista of 200 ft. to re t property owners in that area what they thought t it. People out in that a ave built some really nice homes. All the way rom $150,000 to $250,000 hom and their expectations are that they are going to be surrounded by a resi ial area and we have made some amendments to the plan to accommodate Iden Eagle in the past that would give them some additional space in terms of t -2 but this just goes beyond belief to me. I think that we do need retirement ho we need those kinds of things for citizens, but we certainly need to make sure t we put them in the appropriate place and I don't think this is the appropriate p and so I would move to deny the application. Salina Planning Commission December 4, 2001 Page 22 SECOND: VOTE: Mro Hedges seconded the motion. Motion carried 7-0. #6. Application #SR01-1, filed by the Salina City Planning Commission, requesting an amendment to Section 36-78 of the Subdivision Regulations to require that all utilities in new residential subdivisions be placed underground. Continued from November 6, 2001. Mr. Andrew gave the staff report that was sent to the Planning Commission. Mr. Webb asked are there any questions of staff? Mro Hass asked are the cable TV cables typically underground? Mr. Andrew stated my understanding is the cable TV goes where KPL goes, and if KPL goes underground they share the trench and if they are on poles they rent space on the poles but I will let the KPL people answer that. Mro Salmon stated Dean I know we talked one time about this waiver that in some places it is so loose that it is meaningless but I don't know how in the world you would tie it down to specifics. Mro Andrew stated I think that it would be difficult to get more specific other than to look at terrain issues which we have cited as physical conditions of the land. For example, if you had severe slopes or backyards that went up hill or something with drainage concems. there is one provision in there where we said if what you are going to have for underground wiring would be in an area of standing water or a major drainage area or something, KPL is really not going to want to put their wire underground and have it exposed to standing water, so there could be a waiver granted in that case because of the physical conditions. But primarily this is just an opportunity for KPL to give you some input about whether they can live with this, if they think it would put them in a bind on any of the provisionso and also for you to ask any questions you have of them. Greg Jackson, KPL. Tom Sydow. KPL, it looks fine. Mr. Jackson stated yes as Dean has put it out here, it is very well written; it takes into consideration several different communities. I can see that it was a combination of the best of different communities within Kansas, so good job Dean. Salina Planning Commission December4,2001 Page 23 Mr. Webb asked I am concemed I have some relatives that live in Lawrence, Kansas and they tell me that the developers don't pay an upfront charge for underground utilities in Lawrence, is that correct or not correct? Mro Jackson stated that is not the case, they are within our territory and they are under the same terms and conditions that we areo Mro Webb stated ok. The other question that I have is there is underground cable that is just a little bit east of Overhill on Country Club Road and it went underground and went through Crestview, under Crestview and around Overhill or someplace in there. What was the emphasis for that? Mr. Sydow stated we have a standard for the amount of outages anybody can incur before we have to do something self-imposed. But if we didn't do it you guys would be after us to do it anywayo That cable was in such bad condition, going back in there and putting it back spread out with a non-spacer cable was going to be more expensive than going underground. . Mr. Webb asked so sometimes it is cheaper to go underground? Mr. Jackson stated yes due to the tree situation and the closeness of the easements, it was beneficial to go underground compared to overheado Mr. Webb asked and that was at no Cost to any of those property owners in that area? . Mr. Jackson stated only in the case where they wanted to go to underground service. We have remaining poles in. thereo If they wanted to go with an underground service they had to provide the trench, backfill and conduit and redo their mast on the house. One thing that I did want to mention was in number 9. Dean, can you clarify that a little bit? It says the provisions of this section shall not apply to number nine. I think I need a little clarification on that one. Mro Andrew stated the only difference between that and this would apply to an area that perhaps abutted an area that was not subdivided, not platted but had existing overhead power which might be outside the subdivision but might still serve that. Mro Jackson asked and then if we brought service off of those poles, we would have to go underground to the new subdivision is that what you are trying to say? Mr. Andrew stated to the new but not to the old or the existing. Mr. Jackson stated that is the way I read it. just wanted to be sure. Mr. Andrew stated like the south edge of Bonnie Ridge, if it just happened that the poles for serving Bonnie Ridge were on the adjacent unsubdivided property to the south, you could still have overhead service off of those existing poles. They wouldn't have to be put underground. Mr. Jackson stated good I wanted to verify that. Stan Byquist, 233 Highland, Assaria, Kansas I just had one comment that will maybe help Dean out on this hardship case. I will be faced eventually with a development that will probably fall under those parameters and I feel comfortable in the Planning Commission's decision to constitute what is a hardship even though maybe it is a little bit of a gray area. I feel comfortable with your decision on such matters when the time comeso Thank you. Mr. Webb asked would you like to have a motion and an approval of this? Mr. Andrew stated you have covered so much ground this evening that it may be too hard to even think about at this point. The only thing I noted in there and we discussed before, as this stands now it would only apply to new residential subdivisions, it would not apply to all subdivisions. There are some communities that have an underground requirement for all subdivisions, some just for residential. This is only proposing for residential. If there is any thought for new # Salina Planning Commission December 4, 2001 Page 24 commercial developments or anything that should be a consideration that should be part of your recommendation. Otherwise you have the five options there that are availableo MOTION: Mr. Salmon moved that the Planning Commission approve Alternative Number One to recommend approval of the proposed subdivision text amendment by requesting all new residential subdivisions to have underground utilities. Mr. Hertzenberg seconded the motion. SECOND: VOTE: Motion carried 7-00 #70 Other matterso Mr. Andrew stated the item on the drinking establishment downtown has been carried over to December 18, we also have a zoning case that has been fil for Lewis Ave. right across from the existing McDonald's there where Wad I's and Conklin's had a car display lot. Somebody wants to make that a res' ntial zoned property for possible housing. And then we will just have a art two update on the Comprehensive Plan and what we have accomplis over the last 10 years and that is all we will haveo There being no further business the meeting adjourned at 7:10 porno