Fremont City Council Meeting: 06/18/24 07:00 PM
3300 Capitol Avenue Div/Dept: Community Development
Fremont, CA 94538 Category: Code Adoptions & Amendments
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5190) DOC ID: 5190
Updated: 6/14/2024 7:25 AM by Dina Lewis Page 1
PAD-MOUNTED TRANSFORMER URGENCY ORDINANCE - (Citywide) - PLN2024- 00194 - Public Hearing (Published Notice) to consider an Uncodified Urgency Ordinance to Temporarily Allow Pad-Mounted Transformers to be Installed for Specified Development Projects in Residential Districts Pursuant to Government Code Section 36934 and 36937, to Take Effect Immediately Upon a Finding and Declaration that it is Required for the Immediate Preservation of the Public Peace, Health or Safety, and Passed by a Four-Fifths Vote of the City Council and Making Findings of CEQA Exemption
Contact Persons:
Name: Joel Pullen Anne Quasarano
Title: Planning Manager Principal Civil Engineer
Div/Dept: Community Development Public Works
Phone: 510-494-4436 510-494-4767
E-Mail: [email protected] [email protected]
Executive Summary: Developments located in residential zoning districts are currently required to place utility transformers underground when located in the front yard per the City’s Zoning and Utility Undergrounding Ordinances. There is currently a shortage of these underground transformers due to a supply chain issue, while above-ground pad-mounted transformers are more readily available. This problem is preventing the finalizing of permits on a number of additions, accessory dwelling units (ADUs) and rebuilds. Staff is proposing this uncodified urgency ordinance to temporarily allow residential developments to place utility transformers above ground in the front yard when there are no other feasible options and they are safely placed and appropriately screened from view. This urgency ordinance would sunset in two years. Within the next two years, staff would evaluate the status of the supply chain issue and return to council with a permanent resolution.
BACKGROUND:
When Transformers are Required
The City currently receives a steady number of residential permit applications for additions, ADUs, and rebuilds. Many of these projects require upgraded electrical service to accommodate building code requirements. Older homes generally included more gas appliances and were built with a 100-amp or 200-amp service. Those properties often now require a service upgrade to accommodate an ADU and/or home addition with all the requisite electrical circuits required in modern codes, and to serve current trends in electrification. When the amperage exceeds what is currently being provided by the utility, a transformer is required. Some older neighborhoods have overhead electrical service, while some have service installed underground. For overhead service, transformers are placed on an existing power pole. For neighborhoods built after 1961 with underground service, a new transformer that can’t practically be placed in a rear/side yard easement is required to be placed underground. These requirements come from the City’s zoning and utility undergrounding ordinances, which are intended to preserve aesthetics of the utility infrastructure.
Council Staff Report (ID # 5190) Meeting of June 18, 2024 Updated: 6/14/2024 7:25 AM by Dina Lewis Page 2
Impacts of the Current Underground Transformer Shortage Individual homeowners have contacted the city expressing concerns about long delays from the utility to get underground transformers installed. Supply chain issues are limiting the availability of these underground transformers. Without a transformer, a building permit cannot be made final. This situation delays issuance of a certificate of occupancy indefinitely. For individual homeowners, this can result in potential additional interim housing costs, financing complications, and prolonged household uncertainty about their living situation. The delays quoted, as verified by Pacific Gas and Electric (PG&E) Service Planning in numerous discussions and correspondence, vary from 18 months to over four years. No such delays are currently occurring with installation of above-ground transformers, which are more readily available. Staff is proposing this urgency ordinance in order to allow residential additions, ADUs, and new individual homes, as well as infill projects with permits pulled and construction started, to move forward during the effective term of this ordinance.
DISCUSSION/ANALYSIS:
Project Description:
Staff recommends that the City Council adopt an urgency ordinance to temporarily allow certain development projects in residential zoning districts to install screened and safely - located pad-mounted transformers in the front yard rather than underground transformers, when other compliant locations are not feasible. This solution would allow the impacted projects with permits described above to move forward in the process and be occupied. The urgency ordinance would apply to homeowners doing additions, ADUs, and rebuild s, as well as infill developments which have already begun construction based on permits issued before the effective date of this ordinance. The urgency ordinance would not apply to developments of more than one units that have not yet secured building permits, since larger projects can typically avoid delays through early service planning.
General Plan Conformance:
The following General Plan Community Character and Housing Element Policies are applicable to this project:
Community Character Policy 4-5.3. Undergrounding Utility Lines. Reduce the visual impacts of utility lines and poles along corridors by continuing to underground overhead lines within existing development, and by requiring underground utilities in new development.
Community Character Implementation 4-5.3.A. Place utility distribution lines, electrical boxes and transformers underground in new development and substantial redevelopment of existing properties consistent with the City’s Utility Undergrounding Ordinance.
Housing Element Program 22. Continue to Coordinate Development Review with Outside Agencies. Outside agencies such as the Alameda County Water District, Union Sanitary District, Pacific Gas and Electric, and the Regional Water Quality Control Board have requirements that must be considered and incorporated into the development review process. Continue to work with outside agencies to establish standards, share information, and provide coordinated information.
Housing Element Program 30. Provide Resources to Encourage Development of Accessory Dwelling Units. ADUs are predominantly constructed within the City’s highest -resource Council Staff Report (ID # 5190) Meeting of June 18, 2024 Updated: 6/14/2024 7:25 AM by Dina Lewis Page 3
neighborhoods. They provide a lower-cost rental housing option in neighborhoods that would be otherwise unaffordable to people with lower-incomes.
General Plan Analysis: The General Plan requires undergrounding in accordance with the Utility Underground Ordinance, which provides within it more specific procedures.
This action reflects ongoing City coordination with PG&E to identify and resolve challenges during the development review process. Both the preservation of the city’s existing housing stock and the production of additional dwellings, such as ADUs, are supported by providing feasible electrification options in line with city goals as proposed herein.
Utility Undergrounding Ordinance and Zoning Ordinance:
The City’s Utility Undergrounding Ordinance (UUO) in Fremont Municipal Code (FMC) Chapter 12.35 establishes the city’s 38 undergrounding districts that cover the majority of the City, and, along with Chapter 8.90 of the Zoning Ordinance, generally specifies that utility structures must be placed underground, with limited exceptions. For locations with existing underground service, screened transformers are permitted subject to locational requirements. That is, in residential districts the undergrounding ordinance allows pad- mounted transformers to be screened and located within a utility easement away from streets and open areas at rear/side yard locations. No above-ground transformers are currently permitted within front yards in residential districts.
Code Analysis:
As noted above, above-ground transformers are not permitted in residential zones, and few existing properties could be feasibly served by a new easement that traversed the depth of the parcel to allow placement of a screened transformer in the rear/side yard to satisfy the provisions of the undergrounding ordinance. Practically, these homes would need to have a pad-mounted transformer permitted in the front yard as proposed to be allowed through this urgency ordinance. These transformers are typically a cube shape with a three foot height, depth, and width on single family residential lots, and may be somewhat larger for new subdivisions (see typical details in Informational Enclosure 1, PG&E Landscape Screen for Pad-Mounted Transformers). The urgency ordinance proposed highlights what would be a significant but needed departure from current practice in order to facilitate electrification of the housing stock given the challenges described herein.
Urgency Ordinance Evaluation:
As stated, supply chain interruptions are currently causing an estimated eighteen months to four years delay. Consequently, City staff recommend the adoption of a provision that would allow installation of pad-mounted transformers as follows:
“When placement of a transformer within a preferred location as prescribed under City ordinances is not technically or financially feasible in the discretion of the Public Works Director or designee, above-ground, pad-mounted transformers will be permitted when properly screened and safely located within front yards for: (1) residential building permits for all home additions and remodels, single family demolitions and rebuilds, and ADUs, and; (2) developments with multiple dwelling units in residential districts for which a building permit has been issued as of the effective date of this ordinance.”
Council Staff Report (ID # 5190) Meeting of June 18, 2024 Updated: 6/14/2024 7:25 AM by Dina Lewis Page 4
This urgency ordinance would remain in effect for two years, which is a typical duration within which to evaluate the impact of urgency ordinance procedures. During that time, staff would continue to encourage early service planning and communicate with permittees and the utility to keep abreast of changes in the situation. Staff recommends two years given current information regarding the supply chain. This will also provide sufficient time for staff to evaluate the issue further and return to Council with a longer-term recommendation.
FISCAL IMPACT: None. Allowing development to be finalized and be occupied would, broadly, allow earlier realization of associated taxes and fees associated with development and occupancy of that housing.
ENVIRONMENTAL REVIEW: The proposed amendments to the Fremont Municipal Code are exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to, without limitation, each as a separate and independent basis, CEQA Guidelines §15061(b)(3) [Review for Exemption] in that it can be seen with certainty that there is no possibility that the proposed text amendments would have the potential for causing a significant effect on the environment, §15301 [existing facilities] in that the actions herein relate to individual projects otherwise already approved by the city and subject to standard building permitting, including for electrical service, and §15303 [small structures] in that the temporary allowance for pad-mounted utility transformers in safe and screened locations above ground in front yards within existing residential districts does not otherwise have the potential to cause a significant impact on the environment.
ATTACHMENTS:
• Draft Urgency Ordinance Above Ground Transformers
• Informational Enclosure 1. Pacific Gas and Electric Company - Landscape Screening
RECOMMENDATIONS:
1. Adopt an urgency ordinance to temporarily allow pad-mounted transformers to be installed for specified development projects in residential districts, until June 18, 2026.
2. Find this urgency ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to, without limitation, each on a separate and independent basis, CEQA Guidelines §15061(b)(3) [Review for Exemption] in that it can be seen with certainty that there is no possibility that the proposed text amendments would have the potential for causing a significant effect on the environment, §15301 [existing facilities] in that the actions herein relate to individual projects otherwise already approved by the city and subject to standard building permitting, including for electrical service, and §15303 [small structures] in that the temporary allowance for pad-mounted utility transformers in safe and screened locations above ground in front yards within existing residential districts does not otherwise have the potential to cause a significant impact on the environment.