ATTACHMENT B
Ordinance No. 2125
ORDINANCE NO. __________
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS
MUNICIPAL CODE ARTICLE V OF CHAPTER 8.04 OF TITLE 8
SECTION 8.04.452 AND ADDING SECTIONS 8.04.453
THROUGH 8.04.456 CLARIFYING RESPONSIBILITIES AND
ENFORCEMENT MECHANISMS FOR PRIVATE
CONNECTIONS TO UNDERGROUND PUBLIC UTILITIES
City Attorney’s Summary
This ordinance amends the City of Palm Springs Municipal Code to clarify responsibilities and enforcement mechanisms for private connections to underground public utilities.
WHEREAS, the City’s municipal code sets the requirements for installing service wires and lines, including but not limited to certain overhead electrical lines, underground (“undergrounding”) for new and existing developments and places the responsibility for compliance on the developer and owner; and
WHEREAS, the City supports undergrounding overhead utility wires and poles; and WHEREAS, undergrounding improves public safety by reducing the threat of fire, impacts from earthquakes and high wind events, and also reduces utility company maintenance costs; and
WHEREAS, undergrounding improves the aesthetics of the City; and WHEREAS, City residents have expressed interest in voluntarily undergrounding service wires, lines, and poles in their residential communities; and WHEREAS, the cost of undergrounding can range in the tens of thousands of dollars per household, or higher; and
WHEREAS, the California Public Utilities Commission (“CPUC”) created the Rule 20 program in the 1970s to assist residents and municipalities with financing the cost of undergrounding; and
WHEREAS, per CPUC Decision 23- 06-008, the Rule 20A program, which promoted municipal undergrounding projects, has been effectively terminated; and WHEREAS, the CPUC left its Rule 20B and Rule 20C programs largely intact; and WHEREAS, Rule 20B programs empower private property owners to support the cost of undergrounding projects in their neighborhoods via the implementation of an assessment district on properties benefitted by the undergrounding project in order to fiscally support the undergrounding effort, with the cost of undergrounding paid over time and assessed on the property owners’ tax rolls; and
WHEREAS, under Rule 20B, a small portion of the project (typically between 20% and 40% of total costs) is eligible (though not guaranteed) for reimbursement by the utility service provider, with the reimbursement spread across ratepayers;
WHEREAS, the formation of an assessment district must follow the strict requirements of Proposition 218 (Articles XIIIC and XIIID of the California constitution); and WHEREAS, the formation of an assessment district is a multi-stage endeavor, involving an exploratory phase, a petition phase, and a formal vote(s) before the construction phase can begin; and
WHEREAS, the formation of an assessment district is guided by the policies and procedures adopted by the governing body of the municipality in which the proposed district would reside;
WHEREAS, Ordinance No. 2104 amending Palm Springs Municipal Code Article V of Chapter 8.04 of Title 8 regarding undergrounding of utilities and the formation of underground utility districts was adopted on January 9, 2025; and
WHEREAS, the current Palm Springs Municipal Code does not specifically address the controls and responsibilities of utility companies, the City and property owners regarding private conversions to newly constructed underground public utilities.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals. That the recitals reflected above are true and correct, and are incorporated by this reference herein as the cause and foundation for the action taken by and through this Ordinance.
SECTION 2. Code Amendment. Article V, “Undergrounding of Utilities,” of the Palm Springs Municipal Code Chapter 8.04 is amended to read in full as follows. New text is marked in underline, deleted text is marked in strikethrough:
“Article V
Undergrounding of Utilities
§ 8.04.401. New construction.
No certificate of occupancy for new buildings or structures shall be issued unless or until all existing and proposed electrical lines of 35,000 volts or less and overhead service drop conductors, and all gas, telephone, television cable service, and similar service wires or lines, which are on site, abutting, and/or transecting, are installed underground unless specific restrictions are shown in General Orders 95 and 128 of the California Public Utilities Commission, and service requirements published by the utilities.
(Ord. 1124 § 1, 1981; Ord. 1306 § 1, 1988; Ord. 1316 § 1, 1988; Ord. 2104, 1/9/2025)
§ 8.04.402. Existing development.
(a) Utility lines of less than 35 kV and overhead service drop conductor(s), including all lines on site, abutting and transecting shall be placed underground when existing buildings or structures are remodeled or expanded where the modification increases the building footprint (exclusive
of porches and patios) of an existing structure by more than 10% for multifamily, commercial and industrial uses and by more than 40% for single-family use unless undergrounding is deferred pursuant hereto.
Deferral may be permitted by the city engineer under the following circumstances: (1) if the length of line to be undergrounded is less than 300 lineal feet; or (2) if the cost of undergrounding would be excessive in comparison to the value of the improvements being constructed and be a financial hardship; or (3) if there are alternative methods of accomplishing the under -grounding; or (4) there is limited public benefit to the undergrounding.
(b) The overhead service drop conductors shall be placed underground when existing buildings or structures are repaired, remodeled or expanded where the value (as determined for building permit fee purposes by the building code of the city) of such repairs or remodeling or expansion in any calendar year exceeds the assessed valuation of the building or structure, or the amount of $20,000, whichever is less. The undergrounding of utilities may be waived or deferred by the planning director under the following circumstances: (1) if the cost of undergrounding would be excessive in comparison to the value of the improvements being constructed and be a financial hardship; or (2) if there are alternative methods of accomplishing the undergrounding; or (3) there is lim ited public benefit to the undergrounding.
(c) Wherever in this section deferral of undergrounding is approved, a covenant shall be recorded, running with the land and setting forth the circumstances under which undergrounding shall be required and giving enforcement rights to the city. Among other provisions the covenant shall provide that the covenantor shall waive any right to protest the establishment of any undergrounding assessment district or other area- wide method of funding such undergrounding including any obligation to reimburse other parties for their respective share of such undergrounding cost. The city shall retain the right to underground such utilities and to receive from covenantor their respective share of such cost, and to establish a lien against the property should covenantor not pay such funds following reasonable notice. (Ord. 1124 § 1, 1981; Ord. 1306 § 2, 1988; Ord. 1316 § 2, 1988; Ord. 1518 § 1, 1995; Ord. 2031 § 9, 2020; Ord. 2088, 11/9/2023; Ord. 2104, 1/9/2025) § 8.04.403. Responsibility for compliance.
The developer and owner are jointly and severally responsible for complying with the requirements of this chapter and shall make the necessary arrangements with the utility companies to have such facilities, and/or equipment, properly indicated on a site plan to be submitted with the street improvement plans. (Ord. 1124 § 1, 1981; Ord. 2104, 1/9/2025)
§ 8.04.404. Appurtenances.
For the purpose of this chapter, appurtenances and associated equipment, such as, but not limited to, transformers and terminal boxes, shall be installed
underground, except in those instances where surface- mounted transformers or pedestal-mounted terminal boxes or meter cabinets, concealed ducts, or similar appurtenances are specifically permitted in aboveground locations as approved by both the city and the utility company.
(Ord. 1124 § 1, 1981; Ord. 1306 § 3, 1988; Ord. 1316 § 3, 1988; Ord. 2104, 1/9/2025)
§ 8.04.405. Risers.
Risers on poles and buildings are permitted on single lot developments and shall be provided by the developer or owner on the existing pole which services said property. In no such case shall a new pole be installed, unless a hardship exists, in which case, the director of community development, or his or her representative, may waive this requirement.
(Ord. 1124 § 1, 1981; Ord. 2104, 1/9/2025)
§ 8.04.406. Appeal.
The decision of the director of community development is appealable to the planning commission.
(Ord. 1124 § 1, 1981; Ord. 2104, 1/9/2025)
§ 8.04.410. through § 8.04.449. (Reserved)
§ 8.04.450. Underground utility districts—Definitions.
The following words, terms, and phrases, when used in Sections 8.04.450 through
8.04.452, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
"Commission" means the California Public Utilities Commission. "Poles, overhead wires, and associated overhead structures" means poles, towers, supports, wires, conductors, guys, stubs, platforms, crossarms, braces, transformers, insulators, cutouts, switches, communication circuits, appliances, attachments, and appur tenances located aboveground within a district and used or useful in supplying electric, communication, or similar or associated service. "Underground utility district" and "district" means that area in the city within which poles, overhead wires, and associated overhead structures are prohibited, as such area is described in a resolution adopted pursuant to Section 8.04.452. "Utility" includes all persons supplying electric, communication, or similar associated service by means of electrical materials or devices. (Ord. 2104, 1/9/2025)
§ 8.04.451. Underground utility districts —Adoption of undergrounding policies and procedures.
The city council may, from time to time, adopt by resolution those policies and
procedures for the exploration, petition, and formation of underground utility districts by interested residents.
(Ord. 2104, 1/9/2025)
§ 8.04.452. Underground utility districts—Assessment district formation and formal votes (weighted and parcel).
The city council shall consider the application and/or petition of the proponents of proposed underground utility districts, provided such application and/or petition complies with the city's then- current policies and procedures for the formation of underground utility districts. If the city council approves the formation, it shall adopt a resolution of initiation and direct the city engineer to prepare the required Proposition 218- compliant Engineer's Report identifying the special benefits the proposed undergrounding project confers to the properties. The Engineer's Report shall determine the precise assessment amount on each property within the proposed district based upon the specific special benefit conferred upon each parcel, taking into account admini strative, design, and construction costs quoted by the participating utility companies as well as financing costs, making allowances for cost overruns.
The city council shall consider the Engineer's Report and may approve it by resolution. In such event, the city council shall direct the city clerk to mail assessment ballots to all affected property owners, along with a notice of public hearing, as required by Proposition 218. The ballots shall be printed in such a way as to allow affected property owners to indicate their support for, or opposition to, the proposed assessment. Property owners shall have 45 days to return the ballots, which shall be opened and tabulated at the noticed public hearing.
If a majority (50% + 1) of the returned assessment ballots are in favor of the project, as weighted by each assessment amount, the city council will approve a resolution forming the assessment district. Otherwise, the assessment district is not formed.
Regardless of whether a property owner voted to approve the formation of the assessment district, upon such formation all owners of property within the newly formed assessment district must make arrangements to pay their assigned portion of the assessment. Pr operty owners may, within 30 days, pay all or a portion of their assessment as calculated in the Engineer's Report and approved by a majority of the returned assessment ballots. Property owners who fail to pay the full amount within 30 days shall be liable for any unpaid amount via bond and a lien on the assessed property. Regardless of whether a property owner voted to approve the formation of the assessment district, the property owner, and their successors or assigns, is responsible for all costs of the private connection between the assessed real property and the resulting underground utility system, when available.
(Ord. 2104, 1/9/2025)
§ 8.04.453. Responsibility of Utility Companies.
If underground construction is necessary to provide utility service within a district created by any resolution adopted pursuant to Section 8.04.452 hereof, the supplying utility shall furnish that portion of the conduits, conductors and
associated equipment required to be furnished by it under its applicable rules, regulations and tariffs on file with the Commission.
§ 8.04.454. Responsibility of City.
City shall remove at its own expense all City -owned equipment from all poles required to be removed hereunder in ample time to enable the owner or user of such poles to remove the same within the time specified in the resolution enacted pursuant to Section 8.04.452 hereof.
§ 8.04.455. Responsibility of Property Owners.
(a) Every person owning a building or structure within a district shall construct and provide that portion of the service connection on that person’s property between the facilities referred to in Section 8.04.453 and the termination facility on or within said building or structure being served, all in accordance with the applicable rules, regulations and tariffs of the respective utility or utilities on file with the Commission.
(b) In the event any person owning said property does not comply with the provisions of subsection of this section within six months of completion of the public utility underground project, the City Engineer shall post written notice in a conspicuous place on the property being served of the Engineer’s intention to order the disconnection and removal of any and all overhead service wires and associated facilities supplying utility service to said property, and thirty (30) days thereafter, the City Engineer shall have the authority to order said disconnection and removal. In the alternative, the City Engineer shall give notice in writing to the person in possession of such premises, and a notice in writing to the owner thereof, as shown on the last equalized assessment roll, to provide the required underground facilities within ten days after receipt of such notice. The City Engineer may at their discretion extend the time requirement set forth herein. (c) The notice to provide the required underground facilities may be given either by personal service or by mail. In case of service by mail on either of such persons, a copy of the notice described in subsection (B) of this section must be deposited in the United States mail in a sealed envelope with postage prepaid, addressed to the person in possession of such premises at such premises, and a copy of the notice must be addressed to the owner thereof as such owner’s name and last known address appear on t he last equalized assessment roll, and when no address appears, to general delivery, City of Palm Springs. If notice is given by mail, such notice shall be deemed, to have been received by the person to whom it has been sent within forty -eight (48) hours after the mailing thereof. If notice is given by mail to either the owner or occupant of such premises, the City Engineer shall, within forty-eight (48) hours after the mailing thereof, cause a copy thereof, printed on a card not less than eight inches by ten inches in size, to be posted in a conspicuous place on said premises.
(d) The notice given by the City Engineer to provide the required underground facilities shall particularly specify what work is required to be done, and shall state that if said work is not completed within thirty (30) days after receipt of such notice, the City Engineer will provide such required underground facilities, in which case the cost and expense thereof will be assessed against the property
benefitted and become a lien upon such property.
(e) If upon the expiration of the thirty (30) day period, the said required underground facilities have not been provided, the City Engineer shall forthwith proceed to do the work; provided, however, if such premises are unoccupied and no electric or communications services are being furnished thereto, the City Engineer shall, in lieu of providing the required underground facilities, have the authority to order the disconnection and removal of any and all overhead service wires and associated facilities supplying utility service to said property. Upon completion of the work by the City Engineer, the City Engineer shall file a written report with the City Council setting forth the fact that the required underground facilities have been provided and the cost thereof, together with a legal description of the property against which such cost is to be assessed. The Cit y Council shall thereupon fix a time and place for hearing protests against the assessment of the cost of such work upon such premises, which said time shall not be less than ten days thereafter.
(f) The City Engineer shall forthwith, upon the time for hearing such protests having been fixed, give a notice in writing to the person in possession of such premises, and a notice in writing thereof to the owner thereof, in the manner hereinabove provided for the giving of the notice to provide the required underground facilities, of the time and place that the City Council will pass upon such report and will hear protests against such assessment. Such notice shall also set forth the amount of the proposed assessment.
(g) Upon the date and hour set for the hearing of protests, the City Council shall hear and consider the report and all protests, if there be any, and then proceed to affirm, modify or reject the assessment.
(h) If any assessment is not paid within five days after its confirmation by the City Council, the amount of the assessment shall become a lien upon the property against which the assessment is made by the City Engineer, and the City Engineer is directed to turn over to the Assessor and Tax Collector a notice of lien on each of said properties on which the assessment has not been paid, and said Assessor and Tax Collector shall add the amount of said assessment to the next regular bill for taxes levied against the premises upon which said assessment was not paid.
Said assessment shall be due and payable at the same time as said property taxes are due and payable, and if not paid when due and payable, shall bear interest at the same prevailing rate imposed by the Riverside County Tax Collector on other delinquent tax monies outstanding.
§ 8.04.456. Extension of Time.
In the event that any act required by this chapter or by a resolution adopted pursuant to Section 8.04.452 hereof cannot be performed within the time provided on account of shortage of materials, war, restraint by public authorities, strikes, labor disturbances, civil disobedience, or any other circumstances beyond the control of the actor, then the time within which such act will be accomplished shall be extended for a period equivalent to the time of such limitation. § 8.04.457. City Manager Authorization.
(a) The City Council authorizes the City Manager to promulgate regulations and standards to establish and implement the provisions of this chapter. (b) The City Council authorizes the City Manager to enter into repayment agreements with Property Owners.
§ 8.04.458. Penalty.
It shall be unlawful for any person to violate any provision or to fail to comply with any of the requirements of this chapter. Any person violating any provision of this chapter or failing to comply with any of its requirements shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding five hundred dollars ($500.00) or by imprisonment not exceeding six months, or by both such fine and imprisonment. Each such person shall be deemed guilty of a separate offense for each day during any portion of which any violation of any of the provisions of this chapter is committed, continued or permitted by such person, and shall be punishable therefor as provided for in this chapter.”
SECTION 3. Effective Date. This ordinance shall become effective 30 days after its adoption.
SECTION 4. Certification. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law.
SECTION 5. Severability. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation.
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS ___ DAY OF ___________________, 2026.
NAOMI SOTO
MAYOR
ATTEST:
BRENDA PREE, MMC, CERA
CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, do hereby certify that Ordinance No. ___ is a full, true, and correct copy, and was introduced by the City Council at a regular meeting held on the __ day of _________ ____, 202 6, and adopted at a regular meeting of the City Council held on the __ day of ______________, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, 2026.
BRENDA PREE, MMC, CERA
CITY CLERK